Year: 1868

In lOanable resources than they have been for
long time past When compared with the return Of
the previous week the following changes are pre-
sented:-A decrease in the deposits Of $9,9oo, ,s44,
In the legal tender notes Of $24477so in the loans
Of 1884, In the specie Of g. 393 and in the
circulation Of $780, The totals Of the last two state
ments respectively are az follows:-


Loans s..................$2oe,sls sasl, ,4le,9oo
Specie. e................. le,7A, Ioi !S44, S0s
Circulauon. ............ S,2l3,3I 34,ZIZol
DepoSlfs. .............. Ol, lsS,4I0 l9l, BLOB
Legal tenders. N,7Ss,s66 52,26l,oS6


An examination OF the foregoing shows that the
liabilities Of these institutions In deposits and circu
lation aggregate $225 os7 and that their reserve
In legal tender notes and specie is SIC, or
13s54s7o in excess Of the legal limit of rs per cent
upon the liabilities, which would amount to
$56, ,024. II we deduct the specie, however, we
find that the reserve Is more than four millions
below the legal limit. As may be supposed dis
counting was almost suspended and commercial
paper even Of the best grade, was dficult Of sale
except at per cent above the legal rate during
this pinch; but the supply was light owing to the
dulness OF trade, all the leading branches Of which
are less animated and promising than usual at this
season.


Government securities were dun and somewhat
depressed by the extreme monetary activity but after
the relapse OF about half per cent from the previous
advance on the first day Of he squeeze" prices were
well sustained, and on Friday afternoon and Satur-
day there decided change for the better in the
temper Of the market and quotations advanced from
q quarter to fve-eighths per cent from the lowest
point touched The indications that this class Of
securities has experienced the full effect of the tight
money market and that with q moderate supply OF
1oanable funds 1t will advance considerably, prices
being low and the tendency upward. Moreover,
owing to the high prices at which railway and mis-
celaneous stocks are quoted, as well az to the pub
lc distrust and Wall street decentralization grow.
ing out Of the Erie litigation both investors
and spectators are turning their attention away
from these and the natural result will be that United
States stocks will absorb Of the capital thus left
unemployed, and for safety and cheapness no other
securities can compete with them. What prudent
man would select for investment six per cent In
currency stock like New York Central at 12A, when
he can buy six per cent in gold stocks at . little
than five per cent above par allowing for the accrued
INTEREST," Speculation In railway shares at the pre-
sent time Ia invested with more than ordinary danger
and the market il liable to violent fluctuations which
cannot be foreseen, because they are produced BY
clique movements and other artificial causes which
defy the scrutiny Of outsiders.


The railway share market was variable, and New
York Central at one time declined to III 117k and
Erie to esH the remainder Of the speculative list





afterwards the bull party rallied both the stocks
mentioned and the former advanced to 12sX and
the latter to TN Notwithstanding that the differ
ence between the cash and regular price varied from
an eighth to three-eighths per cent, owing to the
monetary activity. This scarcity Of loanable funds
may have been partially due to artificial causes; but
It was impossible to trace them, and 1t is obvious
that when the money market il naturally active it is
very easily aggravated into striggency, either by
distrust on the part Of the banks or the action
OF individual firms in locking mp their
own money. But for the resolute efforts
OF the bull clques the whole railway share market
would have fallen into panic, and in the absence OF
any outside support q large "short" interest the
decline would have been heavy. Erie was the en-
crossing feature Of the street. and 1t Ia likely re-
main so for q considerable length OF time to come;
but 1t Is supported entirely by the party aiming to
control the road, and whenever they relax their
efforts TO sustain IT, either from inability or choice
IL win fall for the outside public is unwilling to hold
H. SPECTATORS are unwilling to deal IN it, except for
q quick turn, and the banks refuse to loan money
upon It, unless In some few Instances to trining
extent ON wide margin when mixed with other
collaterals. The bull party, however, says that 1t
win put the stock to par before the next
annual election in October; but meanwhile IL
Is useless TO speculate the contingen-





strength Of such statements likely TO ind them
selves seriously disappointed. Neither to buy 1t
sell 1t shortn but to leave 1t severely alone is the
best advice that be given 10 the public under the
circumstances. The litigation In which the company
h involved attracts great deal Of attention both In
and out OF Wall street, and the general opinion is
that the vanderbilt party will not succeed in oustng
the present directors and that the bill before
the railway committee OF the Assembly at Albany
will pass substantially In Its present FORM In which
event thc suits now pending will be practically
decided I'm favor Of the Erie party. The bill in
question empowers the Erie company to contract
with the Michigan Southern or any other rail-
way company to provide track corresponding
70 the Erie gauge and declares that II Is within the
powers OF the company to guarantee the bonds or
coupons Of any other railway company necessary or
proper to secure the connection OF the Erie and other
railways, tins provision being intended TO cover the
construction OF the Akron and Toledo branch, which
Is necessary TO the broad gauge route from New
YORK 10 Chicago, via the Erie and Michigan Southern
lines And ihis project is at the bottom Of the
present quarrel. To open a broad gauge to Chicago
would be In direct opposition TO the New York and
Hudson River narrow gauge route and the Wander
bt party at once decided to declare war against the
Erie Company, and, II possible, turn out fs dircc.
tors suininary, regardless Of their term OF office
not expiring until October next, and install itself
In their places. Thus far 1t has progressed but
little In this direction, and the nunctions and coun-
ter nunctions which have attended Its proceedings
are likely to rcsult In nothing important than
bringing the courts into contempt, for such legal
farce has never been surpassed, If ever before
equaled, In this or any other country, and good
effect OF the passage OF the bin referred TO would be
the dismissal Of these vexatious suits. Moreover,
public interests demand that the Erie and New York
central companies shall be under separate manage.
mcnt, and that the wholesome competition which
has hitherto existed between them shall continue.
To give one combination and virtually one
man control Of four distinct lines in this state,
two Of these being the Eric andi the New
York Central, is 10 establish hinge monopoly, whose