New-York tribune., 1877-09-01

By the end Of November lower hsqre than ms ever ever
been touched at that season ana even less % an The
held az that date Of the panic year. Al! tuc
4sc.s tb"n Tont 60 very decided probability that;
the conditions which. in auto-piano times pr9oG'Su
ftrinceucy n the loan mWke l. ana more OF l,ss ~
mai CLIQUE 81 spcculaors have HctouSy advanced
fhe price OF stocks 90 very mgh hGlcS' WIN ,.s 70
coTs1aucec Of bringing the market large amount ol
s7curiic ntld by Investors; which augmens the hdhs
advances tu spectators and dimishes thc Vlod1t ol
discount available for commercial borroWers ~ Is 10 n
Socd fnot he banks will remember that IN The present
Ccicate condition of mercantile affairs cOmhcG plI
rowers have The first claims upon inein' aud W' 'no
1ors which would tie up their resources IN time o pres
suic.
We should be glad to think that the advice here
riven TO the banks would be needed, but the expert
ence of wears has taught that the average manage
mcnts are inclined to be bold rs lions in the making
Of loans during pleasant weather only to be trans
formed into a flock Of frightened sheep after the
storm has burst. Such was the case IN 1885, loi',
.s57. and in 1873. Then, now, no danger sIgnai
0as needed and no preparation made to meet inc H.
tvltabe.
The ST. Louis Iron Mountain and Southern hal-
way Company recently furnished an example oI the
sporioritv Of credit for the purpose OF paying IN
tercst on bonded debt over the gross earnings oi
,alyay. This company had due on August !,
$4,000 interest on its first mortgage bohds YET
notwithstanding that it had not paid dollar Of IN
terest for six months previous and that according
10 the report Of its President since made,
its net earnings for the six months ending
june 30, were SsO1 ,450, its liabilities increased
SSgS 2fO. and its floating assets decreased Sl24,-
SO6 the company postponed the payment oil the
$4,000 because it could not borrow the money
wberewith 10 pay it. This company's has been one
Of the few which have been showing gain in gross
earnings for the whole year; the increase, IN
this case for the seven months ending July 80, nav
ing been $2f7, ,G36, or over II per cent. And now
oones another company which has been dong a
better business than heretofore" having Sl6oOOV
interest due tomorrow Sept. IL. the payment Oh
which depends upon its ability % raise the
money on loan. II seems that ncgotla-
tions 10 this purpose have been IN progress
for two or three weeks. but whether or
not. they have proved successful, rs not known
10 the street, and except TO the individual mold
er, Of the Hannibal and -. Joseph Railroad bonds,
it is a matter Of small importance. Inc lesson 10
the public is furnished in the fact that If the inter
est Is paid, II is paid with borrowed money
and not from earnings. Had the com
pany's credit been better, the negotiation
would not have been known, and, as n matter oi
course The interest would have been promptly paid
from caruiucs' Ii would bc curious 10 know now
many more railroads would cease The payment OF
dividends If not of interest If made dependant by
poor credit upon earnings alone
The transactions at the stock Exchange TO-DAY
show large falling of from thc late average OF
business. while the operations eNlhltcd no leatGits
beyond those of an ordinary brokers market me
huctatious, which were frequent, scarcely exceeded
range of per cent for the entire day. lhe sub
ioiued table, therefore, sufficiently explains the
RANGE OF ruE STOCK MARKET.