Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1840-08-28

sale of teas took place to-day which was well attenr
ed and the oboned fully equal to iormer rates
for qualities The terms, SIX month notes. pay
able in this city For particulars see State oil Trade
This is the season for the commencement Of the fall
business and the activity trade appears be as great as
the circumstances warrant. There is however, very
marked distinction between the classes OF dealers Inc
hulk of the actual business doing here and throughout the
union is by new class of dealers, who have generally
speaking active cash capitals and who without any de-
pendence on bank accommodations obliged to keep
that capital active and to do so they grant no credits OF az
least short In this city there are many houses
doing good business of this character, which have peeh
more lucrative than for many previous seasons Inc
mers manufacturers, and planters who formerly were
in the habit Of drawing the commission houses as soon
they forwarded their goods are now ophseo ~" ~
cases sales The old 81 stem ny whch
commission houses with the assistance oil pahA 'acieS
could advance largely goods consigned 10 'hen WIN
out having any real capital Of their own Is aone rro"
this source demand for bank ACCOMMODATIONS 10 he eA
tent of ss0OoOOo in season. is cut OIL Formerly an
without any capital could obtain gods on Gre
dit and by bank facilities could again sell them on credits
and thus make living and seemingly gro" fich whe ac
cumuating dead stock which inevitably ruined HIM and
caused heavy loss to his creditors ms class oil Dealers
with their connections they from whom the cry of
hard times is heard and hose paper is Offering in the
market AT enormous rates. This class doing no bust
ness-ther assets are unavailablethe banks inds
posed the oil system because that they have SUI
feed too severely and with dead stocks OF goods they
are endeavoring to renew their notes and struggle on
depending on a change of administration as pana
cen for dcranged business. This has been gong
on since 1887. In the meantime, the new class OF
dealers has gradually charging its circle Many
cases have come within knowledge of dealers who
commenced business in the worst times In 1887 and VINO
have gone with steadily increasing trade Tor cash and
short credits without experiencing any pressure Tor
money, meeting with any reyerses Many have de-
cIared that they did good business as since the
commencement Of the present year. In taking into view
the of business is to bear in mind the
existence of these classes which form the conflicting
elements between the cash and credit systems The auc
ton doing fair business on similar terms
that is say they sell six months formerly but the
notes are universally made payable in this city The
terms formerly were take notes payable in Boston, Phi
ladelphia Baltimore, elsewhere The sudden violent
fluctuations OF exchanges which always in favor
of New York. exposed the dealers to great losses and led
10 the establishment of the present terms AT tea sale
in the spring of 1897 these terms were first announced
and consequence that many southern buyers took
umbrage and left the rooms An attempt was made to
aopt the same terms generally but the competition for
business caused relapse into the old plan and the
failure of the southern banks last fall caught our mer
chants with large southern balances which they SUI
tanned large in the shape of exchange The severe
lesson taught them will operate benocaly for the
future
The elements Of hch business is now constructed are
lapse Of time would inevitably destroy most
ofthe old firms and the suspended banks. change of
may retard the result and cause tempo
rary inhaton this will only cause the final crash to
be the greater will be difficult hereafter to lodge cre
dts Europe which will allow for any length OF time the
imports largely exceed the exports with their accumu
lated pro fits The yearly sales Of stocks in England will
exceed the interest due there S0oOO0o0 annual
w. and which in years will be eweed to $4,000,
co., when the principals begin to fall due, and the inter-
terest accumulaes in ompound ratio The amount
due in Eupopc generally estimated at 0o0 ave-
raging per interest and 25 TO BY selling
stock to pay the interest at per cent; this amount will
double every n years. therefore, by the time it falls due,
the amount will reach SsoO,cOoOoo due in Europe 1t is
true pay their interest by taxation, but
the must be sent to Europe In CON- in produce
in new stocks is impossible TO sand in coin; f sent in
produce deducted from IMPORTS If sent in
socks the accumulation will be stated and at the end
oftwenty.Gvc years the interest due Europe will reach
nearly present cotton crop. The present system OF
internal in New York proposes to furnish
$4,000 of this accumulation. If the sales Of stocks in Eu
rope cease now the annual interest due will be about
equal to the freight and profit exports. The i'm.
ports then avoid specie drain be kept within the
export value products In this state Of things there
will be no room for imitation. small business low rents
and low prices must he the rule.