The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1853-06-25
Our Financial ana Commercial Prospects.

Our Financial and Commercial Prospects.
That the present season of commercial activi-
ty and unbounded speculation cannot last for
ever-that fluctuations in the price of money
are not altogether things of the past-that we
have not reached that degree of stability and
permanent security when the lessons of expe-
rience may be safely discarded-that sudden
checks may occur, banks may %curtail, and pri-
vate credits be Unexpectedly withdrawn-are
propositions the truth of which no sensible man
of business will be disposed to deny. Nay
more it must be obvious to all that there exist
at the present moment peculiar causes for ap-
prehensions.
1t is true that a review of our domestic
finances discloses but slight reasons for alarm.
In most of the States of the Union; as is shown
in our money article CT to-day, banks are now
established on a solid basis, and offer ample ac-
commodation to their customers and security to
note Older Though their number has in
creased from seven hundred and lightweight in
1897 to nine hundred and forty at the close Of
last year, the total amount Of loans or
discounts has really fallen during the same
period from S525, lis. 702 to S4S6, s57, 236. The
amount Of capital invested has varied but slight
ly. In 1887, it was set down at S290,772.091;
in 1852, it stood at $40 85.211; the former be-
ing. moreover, as was discovered to our sorrow,
too often merely nominal, while the latter is in
general secured beyond a possibility Of failure.
Their circulation is increased; but hardly in
proportion to our increased population, trade,
and developed resources. Here are assuredly
no serious grounds for uneasiness. Nor do our
commercial records tell a different tale. Disas-
tiers have taught us prudence; the bulk Of our
funds is invested in those branches of trade
which offer a solid basis and are sure Of
a permanent demand. Our staple exports
are LARGELY inA~--oleIgn markets has done
much to lessen the speculative character
they once bore. Of the new enterprises which
each day brings forth, the proportion of bubbles
is. we c%andidly believe, less than it used to be.
For the money actually invested, most of the
mining, manufacturing, and railroad companies.
produce a fair return. On the stock list they
are generally quoted at a discount; but this
obviously arises from the fact of the conven-
tional par value being considerably higher than
the sum actually paid in by the holders, and is
no symptom Of their depreciation. A stock is
sued at 80, is really at a premium at 80, though
the nominal value registered on the scrip may
be 100. On the other hand. our shipping is
rapidly increasing both in numbers and quality.
Our internal means of communication are be-
coming more rapid and complete, and, as a ma
tural consequence, more generally lucrative.
Wild lands, by the hundred thousand acres. are
being subjected every year to the axe, the
plough, and the spade. Even our manufactures
are generally in SO thriving a condition, that a
further amendment Of the tariff will soon be-
com practicable.
This is certainly a gratifying picture to con-
template and could we isolate ourselves from
the rest Of the world, we might on the strength
of it. dismiss from our mind all fears for the
immediate future. Unfortunately for us. our
interests are so interviewer with those of our
sister nations-Great Britain especially-that
when we have examined our own condition and
prospects the task of prudence is but half ac-
complished. As partners in the great CONNER
cial firm Of the world. we must be prepared to
meet our associate as well as our individual Ii
abilities. The extent Of the former is. we fear,
hardly realized by most of us. We are too apt
to forget that millions upon millions of our
stocks and securities are held abroad. In rails
ing our credit in foreign markets we have in
creased our liabilities to foreign capitalists, and
are now Utmost as deeply interested in the pre-
servation of their standing a. themselves. The
lucrative character Of our commercial enter
prises has likewise induced a flow of foreign
capital into the country this we may be called
upon, at any moment, to refund. Long con-
tinued peace and prosperity abroad have stimu-
lated the production of our staples to an unex-
ampled extent; any convulsion in Europe would
deprive MS Of q market, and throw back an i'm
mense surplus on our hands. A declaration of
war on the continent would be as keenly felt in
Bourse at Paris.
Hence IL is that il concerns us most deeplv
to keep watch on the foreign world. One need
not he an alarmest to discern the gloom which
overhangs the whole continent of Europe at the
present time. Even il. as we sincerely believe,
the Russian and Turkish difficulty be amicably
settled, the designs Of the Gar cannot be re-
garded as abandoned; nor can the imminent |
risk which Southeastern Europe will run be
otherwise than prejudicial to q healthy trade.
a coming storm in Asia has already overcloul l.
ed the horizon. In the plethora Of his power
it is not beyond the bounds of possibility that
Nicholas will finally throw considerations OF
public law or prudence to the winds, and defy
the combined rcmonstrarccs Of the allied