Year: 1868




MONDAY April 13-6P. N.


The stock market has been on the whole weak and
unsettled to-day and the indications are that there
will soon be heavy downfall in prices for all the
speculative railway shares Six and eight per cent
stocks like New York Central and Hudson River must
fall below par before they rest on solid f0unda
ton and non-dividend paying ones like Michigan
Southern and Erie must sink In proportion before the
outside public will venture to buy them either
on speculation or for investment. Stocks
which have been enormously innated the prestige
OF one man must come down by the force OF neces-
sity to their legitimate level and II they do with
a crash some day, they likely to do, the bull
clques and other professional spectators for rise
will be about the only sufferers for the outside pub
lie has already prudently deserted the Stock Ex-
change. The litigation in Rock Island and Eric has
made far seeing investors anxious to sell out
their railway stocks for very good reasons;
but these have not yet become fully apparent
even to the keenest men In Wall street. The whole
railway system OF this country, need hardly say,
Is rotten, and the monopoly aimed at by the Wander
bilt party, II achieved would only tend to increase
its rottenness; but as monopoly Is intoerabe TO the
people, Its ultimate defeat may be accepted as cer'
tain. The depression which overlook railway
property in England and France after the termina-
tion of war is more than likely to be experienced



thereto; and as Sir Morton Peto failed like Hudson,
the railway king, before him, so the railway
magnates OF our country, whose wealth
is In the stocks OF the railways they con-
troll will be likely to succumb to the storm that
is brewing, and the prostraton WILL in oil probabil-
fty be fully as great as 1t was and still Is In the
countries We have named where railway stocks
which three or four years ago considered Just
safe and thrice asprotable as British consols are





being heavily in debt and unable to pay dividends.
The revelations made in the course Of the Erie liti-
CATION have opened the eyes Of the people to
the great fact that railway shares have been
enormously inflated since the paper money
era began, and that they not worth
anything like what they are now selling for.
In view Of the impending crash, therefore, we warn
the banks to prepare for it by reducing their loans
speculative stocks their condition at present with
respect to these being a very dangerous one.
The break in Atlantic Mail Is the forerunner OF
heavy and speedy decline In the other speculative
stocks and the ciques that attempt to resist the
downward tide will themselves be engulfed In ruin
however great their their leaders, resources
may be. on another occasion we shall detail the ex-
tent of the decline in railway shares in England and
France since the end of 1865 and this will serve
guide to what we may expect here.


Money was in good demand at seven per cent from
the Stock Exchange, and the supply was so far
limited as to give rise to complaints of stringency In
some quarters. Lenders going over their out
standing loans and sitting out the unsatisfactory
coaterals rs well as calling up wider margins than
usual, while in making new loans only first class
securities are accepted. This Is owing to o well
founded distrust OF the present market values
and apprehensions that the break In Atlantic Mail
may prove the precursor Of similar collapse In the
high priced railway shares like New York Central
Hudson River and Erie. However abundant the
supply Of money might be, therefore, this distrust
would be unabated while the present causes for it
existed. The now OF currency from the interior
from this time forward will gradually swell the
loanabe resources Of the banks here, and where
the colaterals, the margins and the borrowers are
satisfactory it is fair to presume that there will be
no difficulty experienced in borrowing at the legal
rate. Many OF the stocks upon which the banks
have been free lenders on small margins are unfit
to be held by them coaterals owing to their un-
fail to give proper security to depostors II 1t per-
mits bank officers to jeopardze the funds Of their
respective institutions by lending on them any
lnnger Vet thoro 10 good believe that the
banks OF this city such largo holders OF the
speculative railway shares upon which they have
made loans that In the event Of panic they would
be unable to sell them for what they have advanced
and, therefore, they would become their virtual own
ers, in many Instances, through the inability OF the
borrowers TO pay OF their loans.
A comparison Of the statement OF the associated
banks of this city for the week ending on Saturday
and 1866 respectively shows the following changes:-


An,.jI ls.iI 4