Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1840-08-15


The small trade which has been done during the past
few months and the gradual sale of the immense crops,
have had their natural effect in iqudang balances due
the seapors generally, and TO New York chiefly, the
great centre Upt the close of last year. debt
accumuating against the producing sections in favor of
the Atlantic cities, under the false system which bust.
| ness conducted. The basis of the business
expanded currency which raised prices much above
the European rates that goods any could be
forced Oft in the market at profit to importers here and
manufacturers there The same operations of the Banks
which inflated the currency enabled of small capital
give long credits and jobbers and foreign agents
in competition for the country business The object
to sell much possible, without any regard
ability pay. Bank discounts the for all
| parties.
In 1892 81 and the merchants of the Atlantic cities
visited the western states, stopping in every ill
lage Nearly stage that arrived the western cities
brought two eastern "drummers," who, being
ntroduccdto the village merchants enquired where they
had been in the habit of buying their goods. Merchant
~ do small business and usually my stock in Pitts
burgh, Cincinnati AMI sometimes in Philadelphia"
Drummer "Why, SIR a friend will Inform you that
you behind the age permit to give you my card
and by all to New York, when you wish
buy goods. Stop Hotel and will take care of
you you shall be introduced to all the branches Of trade
and supplied with goods such terms will pay you
splendid profit" After taking inventory of all the bust
principals in the east the drummers would then
pass make customers. Thus the country was
overrun, and business men hunted down. Many small
dealers who thought of launching in trade hal
their curiosity akened visit the cities where
credit cheap, and goods plenty. The mporations
foreign goods had been very large When obber
into a commission buy Of goods OF Kind
the obber informed that it would be his
ersst to take 10 of kind Of another and
100 bales of another The obber left saving went in to
buy small lot of goods but have been tempted to buy
ten times more than intended" Welhe gets them home
boy these he sold" When western man would
arrive the boldest drummer" carried off the prize
the country trader was at once shown through large
stock Of goods his ambition kndled ideas flashed
his mind II too" he concluded "may have short
time fine house and1ve in eastern s,ylc Of
ing, he intended goods the of an amount
equs Ito the wants of his customers he found collecting
his bills ne had bought the amount OF this he
would think going ahead yet he assured that
he ought to buy much larger stock and that he could
easily pay for them On getting his stock home he forced
OFF double quantity his customers in turn telling them
"you pay for them when 1t suits you.
This system, by creating too great number of
chants inundated the country with goods, which
consumed before the of paying for them pro-
duced. This ended in a revulson soon the
manufacturer in Europe demanded his money The banks
which had raised the storm they could quel stopped
10 ~ cent, winch came out oil the
profits Of the real business In 1882 the European
manufacturers had large stocks Of goods hand the
productions Of which the effect Of the large orders
of former years No orders were, however, received
for them, in 1899 to any extent and the necessities of
the manufacturers caused them send them out here for
sale any price This caused the imports of
high amount before. The old Is how
ever, done. and cannot be revived The western
country is just beginning from its effects the
southwest still lies crushed under H. The new crop of
cotton may be of assistance in extracting them but
the prospect for very low prices; and raised in
season Of high prices, not much profit be expected
from II. There is the whole, but little chance Of a
vval of business until succeeding crops shall have
ted balance in favor Of the country
We remarked lately the absurd manner which the
new banks directed to make their reports
aud the impossiby ofdcrivg any information from them
to the real situation of the bank We have received
letter from the cashier of the watertown Bank encos.
ing correct statement of the affairs Of that bank He
mentions that the same statement to the Comp
troler who would not receive the ground that IL did
not comply with the law to be regretted that techn
calities should stand between the public and The do
sired information The following is the correct statement
Of the affairs of the Watertown Bank -
A STATEMENT OF rHr ArraIes or rHE BANK ~ WATER.
state stocks deposited With the ComptroIIcr, viz
80 Arkansas bonds, per cent $50 900
Illinois do do do, =, =. 1000 $4,000
their original subscription Of stock, on wh,ch
interest has been paid 20 LIST May, 1910 1900
Do 60 Let Jan $50 5000
DO to 2eth April 1899 PES
DO 10 Isl Nov 1899 abs ss.o7s
Plate and othe- furniture, area
GollsssIIstls !, .,.-a..1 ,ar.,,,n'. ass:
Amount due, and not N sui'' supposed sol.