The Sun.
London, England, 1866-11-29 00:00:00

Credit.—A Warning.

We should be false to the responsibility which is
imposed upon us if we hesitated to point out to the
manufacturers and merchants of this country the
danger which is plainly imminent of a return to the
credit system—a system at any time injurious, and
which the experience of the past four years has
proved is wholly unnecessary, but which, under the
present financial condition of the country, would be
fraught with special evils.
For some time past dealers in dry goods have
been selling their goods on time, and we understand
that a large amount of indebtedness in that trade is
outstanding, not only in the North and West, but
in the distracted and impoverished South. Failures
have already taken place in that trade, and others
are anticipated, while the woollen trade is in a very
precarious condition, being almost entirely pros-
trate, and with presages that cannot be mistaken of
coming disasters.

The iron and hardware trade has heretofore main-
tained with greater firmness than any other interest
the cash system ; but we regret to say that there
are symptoms of relaxation of this policy, which we
cannot regard without alarm. The demand for
goods is getting dull. Merchants in the interior are
discouraged by the falling off of sales, and although
generally retail stocks are not heavy, yet orders are
few and small, a general depression in the trade
shows itself, and an anxiety to force sales is ap-

parent.
We have recently given our reasons for the assur-
ance that the price of commodities cannot be ex-
pected to decline. An insufficient wheat harvest,
the necessary taxation caused by the war, the dear-
ness and scarcity of house accommodation and other
causes, have all combined to render it impossible,under
present circumstances, materially to diminish the
cost of production ; and high as the present prices
of goods are they are not equal to the advance in
the wages of labour. It is therefore manifestly un-
wise for manufacturers to increase their stocks
largely with the expectation of forcing the sale of
them, either by reducing prices or by offering their
customers the temptation of credit ; and we write
this article with the simple object of advising great
caution in the course pursued by manufacturers.
If a temporary lull has arisen, let us accept the
fact, and be content for a little while to do less busi-
ness ; let us not complicate the evil by creating an
unnatural demand for goods which the people do
not at the moment want ; but rather than introduce
again the pernicious system of general credit rest
upon our oars for a little while until a healthy and
natural demand arises.
We do not write these words to alarm, for we
know that the entire North is in a sound financial
em t
condition—we only write them as timely warning
that the effect of a departure from the wholesale
w warancash system may be kept in mind. And we hope
what we say may be heeded, and that the accumu-
lationsm ay no of fn
opwr profits s
recklesslymade since
squandered in commenced
attempt
to force an unnatural demand for goods. Better,
vastly better, for all concerned, to shorten produc-
tion, to contract business, and to •
wait for the re-
vival of demand, which will naturally soon appear.
Our advice to all, but especially to manufacturers,
is—be patient.—The Home J ournal.

SPAIN AND THE SOUTH AMERICAN
e.REPUBLICS.--
The belligerent States have all accepted mediation perof-
fered by England and France, and also the bases of
of which this is an outline : —l. Spain renounces leaving her
flag saluted by the Republics previously to any peace nego-
tiations. 2. The treaties existing between the belligerent
States before the war shall be re-established and put in
vigour. 3. All decrees enacting the expulsion or banish-
ment of any subject of the belligerent States, or the confis-
cation of State or private property, shall be held as voidand
annulled. 4. The war prisoners shall be at once given up
to their respective nations. 5. The prizes in possession of
any belligerent shall be given up forthwith to the nation
to which they belonged. 6. The contracting partsiseeilsisss h ahnaalld l l
damages
putag e s forwardsustained an
iny claim
war.
7.
or cTomhopeßensaptuibellefoorf lcoh
not cliani claim any
damage for the bombardment of Valparaiso.
_v
ARCHBISHOP WIIATELEY seldom said a happier
thing than one evening, at a Castle reception, when a
starched Chief Justice directed his attention to a lady's
dress, which perhaps verged on undue publicity, with
" Did you over, my lord, see anything so shocking ?" and
he gave the Chief Justice his quietus with "Never since I
was weaned."