The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1854-11-17

II g AZ ell times an ungrscous task To aliude to
difficulties in commercial circles, particularly when
created by disruption Of political affairs, or circum
stances involving depression Ia an especial branch
Of business but the sus which have attery
taken place and 10 which reference Is directly in
tended cannot be said to have followed from ante.
cedents Of this description, but, on the contrary,
from excessive individual speculation, without ade
quste capital 10 support its responsibilities. Nov,
this is bold assertion, and II will BE- probably met
by the rejoinder, that it Is all very well 70 Jump TO
this conclusion ascertaining the disastrous conse
quences Of the adventures these several parties have
engaged in; but, unqualified as il may appear it Is
nevertheless true; and the system on which business
is known 70 have been conducted should have been
accepted as warning, and prevented tina. free fa-
cility for assistance which is stated TO have been
dcred to these houses. far beyond the date they
were entitled to receive 1t. II any evidence were
required Of the instability of the foundation upon
which this kind Of credit has been supported it II to
be found In the very fact that tho first pinch, not to
say pressure--for that Is term many sensitive
people will object tO-has terminated its vitality.
Unreasonable II would be, indeed, to suppose
that trading relations, however lucrative could DO
carried out unGccompanied by the Intervention Of
which legitimate sphere Of commerce presents
But the fatal acquiescence in and extension OF the
sasure to which these facilities had been granted
form the ground Of condemnation in the estimation
OF those whose prudence would have induced them
to stop far short Of the limit allowed, according to
the usage of Liverpool activity free exercise OF
credit with undoubted resources to meet the lia-
bLisies currently entailed in a mercantile career
whether through the agency of baa ks or she re- e
Hzed channels of discount brokers' is NOT question
w1icl any one would for an instant dare dispute;
and the more encouraging the success Of the
merchant or the trader, the greater is his title
TO respect and consideration il the financial
operations witch be may be DESTROYS of CON
pietiDg. Confidence bcRotten in this manner
cannot be too well repaid by the assistance essen
tial to maintain large and increasing business;
yet when 1t is perceive that the operations which
orce were coD6ned to wha. may be properly desig
mated wholesome and legitimate mercantile con
tracts suddenly enlarge AID assnuae wild aud nm
certain range, il not only dnty which the banker
or broker owes 10 HIMSELF but also to MS customer,
TO step IN 81 protest their ual interests,
at risk of diverting temporary profile.
Every one who has had tee least experience in
CONNIE rcial affairs will readily appreciate the desir
ablsness OF establishing checks upon speculation in
Its carly stages, since subsequently il is more diff
colt TO arrest especially when the ramiGed chAnnes
Of trade give increased life and power TO its pro-
gress. TIE system adopted In the cases now under
notice, presents In an nnmistaksble manner the
cess which, through this me dum, has for time
attended the imitation Of paper cir ;uaton; but IL
bias been followed by the melancholy spectacle OF all
the firms known 70 have been intimately associated
with relying upon each other for sup port, aud OF
the whole OF tteh endeayoring to SHIFT the odium
to more capaci0u5 shoulders, by declaring them
selves TO have been more ahmed agai st tnsn SIN
nlDg.n
AAo wable az the excuse may be in c0nnexion with
some Of tie smaller firms which have taus paid the
penalty OF their imprudeDce, II cannO be advanced
~ favor Of th'se originating the movement San
gune IS the expectations Of returns may have been
"a, 1t is alleged, the result Of previous
speeulations had proved-it was not compatible
with the dignity OF theie position with the safety
o. The branch Of business they represented to launch
recklesfly into systm Of bill accommodation
which it was scarcely to be hoped could ever pros
per. 1t was to have been cipated that the wide
az .lN.~-
and evils then resulting from an extensive abuse
OF confidence would, while stimulating the exercise
OF greater caution the pant Of the merchant have
likewise induced his financial supporter to watch
With extyao' binary vigilance any deviation from
regular course. But this Gots not appear to have
been the cate. In fact and circumsfan e the objsc
Onsbie phases Of the old story revived: repnscd
wealth, unparalleled resources, and inor6ina.e Gre
dit. With these in full command, 80 !oug as the
current o. business ID sDooh and the rate OF money
"a easy, tie paper floats unharmed by suspicion. 1t
ia only when reverse takes place, s1d acc lmruo
ds.ion, which WAS before freely available, be ONES
tstcied that these pre- tensions are dis covered 70
have been largely exaggs rated, aad the bubble
coutse bursts much u The disaay and disc .m6trr.
OF those mplicated. Unfortunate as Their rositiou
undoubtedly is, tae majority interested have then
Is
}9Ne4eglA&0eenrss! sss1nU , gsessS -
fiS soes si%sssscsisg ha.insss, Indicative as il
~ u Q 1les4Otd3 H00 - o00JO 0O941f55 TX IuKSr
tocugAs, Is appArsafly borrpvsi from Amsrisa.
wheres failure 81 ems TO be secondary coBside-a.
ton, provided there 10 chance Of again cate,igg
into The gard arena OF .fpeculatioa. 5priugtpg
ON thus vicious piiciple, an unlimited employ.
melt OF psper credit has always, more or less, dis
,inguished Tie trading operations of onr rsnsatan
tic ieighbors; and strenuous 90 the efforts have
been to cofIet the evil, 1t continues TO be largely
exhibited whereycra partial pressure ensues. IL ia
to lie hoped that any section Of the mercantile
classes o. EDglsI ave not emuous OF initiating ia
Its worst features this special description Of na7-
cieriDg ability though, from what bias recently o.;
CURED, not only in Liverpool but also in London,
m impression might be formed that advantage
haa been tsken Of tue experience already acquired.
TIE losses wtica these failures have entaied
will, In s Probability operae for the present as
G. eek to extension VI the SYSTEM but this il no.
sufficient, and o determined endeayor should he
nature Of tie competition for banking facilities
ttLer ia the provinces or tie metropolis. sef int
ifst and protection should induce cooperation
smong those primarily con serned to root oat aud
destroy any organized arrangement which ssvors
Of accommodation or an undue expansion Of liabili-
ties Besides saving vast amount VI obloqny, it
WILL in the long run, produce the largest proportion
Of legitimate profit.
question, with regard to the operation Of the B INK
Charter act. Although that law ia not without its
defects, some of viii 1t may reasonably be aotici-
pated WILL at no distant da,e be NEEDED, how v0-
CileIous Nouio HnVc Uttu tuc cutCIy EbAlHst us
working bad these failures taken place in the midst
Of general panic! Instead Of being attributed,
they are properly now, to their true causes viz:
cessve speculation and overtrading, they would,
according to the theories OF the currency doctors,
ave been produced by the stringency OK the act
and its con urrent consequences. As " "a, howev.
er they ONE before The public 10 an almost isolatsd
position, and must therefore stand the brunt OF in
quiry ON their separate merits.
The United States Fleet In the Chimese Seas.
We copy the following re oorted movements of the
United States squadron, from the CHINA Mai Of
10th August
or the Japan feet, the Saratoga, as was reported
two mails ago, lett Japan on the 9Th April, having
Fleet Captain Adams On board, is bearer 10 Vas.
,rgton CT the treaty between the Uni ed States and
japan. She rived at Sand sich Islands, and saiiei
for Tahiti route to the United States on the lssh
May, Ca Ytein Adaus pio eediug to San FrAncisc)
in ihs bark Wavelet The Plymouth, with the pre-
stDts from the Emperor OF Japan left this hafboF on
the 10th Jolly for New 70 k, via singapore, Penang,
ana The Gaze of Good Hope. The Msccdonisn has
gone to Manila. The southampton loads here Sita
coal for japan and VIII be followed probably by the
exi of ~ thence both vessels will 20 20 the ruitad