The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1847-12-16

this country We have only TO point to the recent fall
ures In Great Britain to illustrate this clearly and
more fully. From examination of the balance sheets
Of the most prominent Suspensions In Great Britain
have come to the conclusion that the average dividend
OF all the ilures will not be than twelve and half
per cent eighth of their liabilities We judge
from this what rotten condition those houses have
been before their suspenson and the preba-
bty is that their English creditors will be the only ones
that will get the above tring dividend Whatever
claims may be held this side against those houses will
to be of value than the paper upon which
they written In comparison with this the
which have in years past occurred in this country and
the limited losses experienced by English houses on their
claims against suspended houses here The statistics of
the bankrupt law criterion Of the average dvi
dend foreign indebtedness large per cent of the
debts quidatsd by that act were of local character
In specuatons in land and lots every part
of the country 1t is estimated that the average dvi
dend paid to foreign creditors by the suspended houses
in this country In 1887 was seventy five per cent IL
the opinion of many that 1t even larger than that
but even this estimate shows vast difference between
American and English houses in their soIvency, their
honor, and in their claims for credit When houses
such those which have suspended In Great Britain
within the past six months continue year after year. to
make new and extensive contracts upon the fictitious
credit they enjoy liable at any moment explode de-
ceving daily those they transact business WITH and
dangerpg the existence Of houses really solvent by
their connection with them, living In extravagant
style, year after year. upon their creditors when they
knew full well that they hopelesly bankrupt what
can expect in the way ofdvidsns? Nothing but the
rigid bankrupt laws Of Great Britain compel them to
disgorge what little they have left and their creditors
make the most oft their laws were In this particu
lar as ooe they in this country, the credtorsn
tnftuv
concern winds up its business, declares Its own
dividends and prOmI tly pays every fraction their
sets enable them to- Their creditors rest perfectly easy
feeling satisfied that house can wind up its own bust
ness more advantageousy, and make better dividend
from its assets, than any committee cam and the
result s comparatively email losses The bankrupt laws
Of Great Britain compel the bankrups Of that country
honest than their acts induce us to believe
they would otherwise be.
The only way to avoid farther by the dishonor
able, dsreputabe, system many houses on the other
side have Of doing business particularly that on Amer
can account, is to give them credit Make them
pay for every dollars worth they want before Is deli
vered. Sell them breadstuHs In own markets and
take the pay for 1t here leaving the risks Of shipment
and depreciation in prices to foreign houses There
no doubt but that foreign agents will be- plenty enough
in markets by and by purchasing our breadstufs
silver in their pockets but by all avoid shipping on
domestic account unless shipments made to Ameri
can houses the other side There is grand opening
for the establishment of American houses in England
and we have no doubt 1t will be made available, the
American portion Of the trade between this country and
Great Britain will hereafter be conducted upon differ
emit principles than those which have
edit 1t will be kept more within own control and
carried on more directly between the and con-
sumers, than ever before There will be q complets re-
voluton in the system Of credits The occupation Of
the large exchange operators in this market is gone
they have extracted millions Of dollars every year from
importers in payment for credits which have
vaueess bills Of credit have been purchased on foreign
houses which were not worth fraction and our mer
chants will not be caught second time with such trash
The revulsion in England will ultimately bs of much
service TO u.s. our large losses as 1t will
existed in this and other cities OF the Union We must
build up American houses in London and Liverpool to
do American business, and then we shall know whore
We stand We want American houses in London and
Liverpool solely identified with American interests
houses that will confne themselves exclusively to the
American trade. English credit Is fer below par ia
this Market that will never be revived again 1t would
all connection with English houses. so many of them
look upon the Americans fair game to fleece that it
Is almost considered virtue.