The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1855-01-05
FINANCIAL AND COMMERCIAL,
N q n EY Jar X Il II.


MONEY MARKET.
THURSDAY Jan. 4-6 p. M.
The effect Of the recent heavy failures is still visi
bic In Wall street. The stock market has not 70
covered its former buoyancy and the feeling of dis
trust is daily becoming deeper and more chronic in
its character. The hope entertained by many OF an
immediate recovery, has been abandoned, and all
now look forward to long period of gloom and de-
preston. The evils we have to contend with are
too deep seated to be reached by mild applications
The dsease has taken such a strong hold upon the
body, financial and commercial, that long course
Of depletion will be required to bring about
healthy action again, and we must by care and
caution prevent relapse after the recovery COM
mences. 1t is very natural for those engaged In
tive business pursuits to hope for the best to look
for speedy return OF better times, and to con-
slider any pressure merely temporary; but with
them the wish is father to the thought and
they hope on in vain, until it maketh the
heart sick. The community in this way deceive
themselves, and their anticipations are never
realized. Tney are continually in advance Of
the reality, and the times are therefore more or
less out Of joint. At the commencement of the
last great revusion in mercantile matters the bust
ness classes did not dream OF the result. No one
seemed to suppose for moment that more than two
or three failures would occur. Those who were first
Frustrated, felt confident of resuming in q day or
two, and it was the general opinion that a week at
the most would remove all difficulties. At the end
of the W. elk complete panic had seized the publ,
mind, and the failures averaged full half dozen per
day. Amidst all the excitement and prostration,
the impression still prevailed that IL would SOON be
over-.hat it could not be Of long duration The re-
cult Ia well known.
The failures in this city alone reached nearly one
thousand, and every interest OF the country was al
most ruined. The bsttom was not fairly touched
until lS43six years after the revulson commenced.
During that time efforts were repeatedly made
to revive and restore credit, but after q
glimmer or two tie spark disappeared, and left q
darkness mora profound, until finally esction was
visible and confidence returned by al most imper-
ceptbe degrees. Tue recovery was gradual, but the
foundation being fixed upon the very deepest sub.
stratum, the credit system became firmly establish
ed. Six years of contraction, liquidation and
economy, with tie blessings" Of general bankrupt
law eradicated the disease which previous years of
prosperity and extravaganza had engendered, and
placed the country at point from which any move
ment could not but be forward. The progress at
first was slow and sure, for all were weak in re-
sources. year or two gave strength and conf.
den,e, and the expansion was gradual, and only In
proportion to the legiti nate wants of commerce.
The credit system continued sound, and the opera.
tons Of trade we're confined TO legitimate channels,
until the excitement attending the production Of
gold in California led the community into all sorts
of speculation and exravagance, to an extent never
before equaed.
4 WA mi Mt AZ fho In of nl
mia gold began to alarmingly initiate our credit sys
tenn. During that year the expansion OF the banks
amounted to about fifty millions Of dollars, caused
principally by the mania for extending internal i'm.
prove ments. More schemes were concocted In that
year, more railroad projects planned, more specua-
tons commenced in every section Of the country,
than ever before in any ten years OF our nation.
al existence, AZ the whole financial machinery Of
the world was put in operation for our benefit. For
about four years all this worked apparently smooth
ly and satisfactorily. Immense fop.uses were made
on paper. Men who previous to 1850, had not two
dollars in the world 70 jingle together could count
up tens Of thousands in stock scrip, deeds, &c. aud
It was certainly gratifying TO enterprise liberal
ly rewarded. In the midst of these halsyon days
we sounded the note Of alarm. We warned those
engaged In the excitement and strife Of speculation
10 prepare tnemseives ior reverse, and poi 1ted
out the result which was as sure TO follow an
night follows day. II was A. clear to our minds
eye As the sun at midday. Previous to the revul
sion in 1887 we frequently foretold its approach.
Certain causes produce certain effects In financial
and CON mercal affairs rs well az In physical mat
ters and II requires great foresight to see what
must be the result OF certain acs IL Ia only nece,
sary TO be removed from the great maestrom 10
which 30 many were whirling about at such rate
a. to derange their vision, TO take cool, calm view
Of the position Of things, and TO arrive at just con
clusons. During the past two years we have made
every effort TO induce the community 10 pause snd
extricase themselves from the current which was
bearing them rapidly along to inevitable destruc-
ton; bat they were deaf to our appeals, and we
now find them struggling In the vortex from which
no human power can rave them. After twelve
years Of unprecedented prosperity, the entire com
mercial community Is plunged into the deepes,
depths Of depression, from viii, II will require
years Of economy, retrenchment and reform TO re.
Heve M.
The stock market opened today unsettled and
feversh. At the frs, board Erie income bonds fell
on per cent, New York Central bonds, 4; New
jersey Railrosd, Chicago and Rock Island Isas,al,