The south-western. [volume] (Shreveport, La.) 1852-1870, 1855-01-03
Cosaase1tL CR1srs.-Hunt,s Merchants

4
| ed in this country, in the number for Decem-
| Der, giye4 some interesting facts in regard to
| the monetary difficulties under which the COM
nercial & Immunity is now laboring; and goes
on to demonstrate that a large contraction has
taken plske IN the import trade, (Which, had
| it commenced sooner, would have saved the
country FROM many of the disasters incident to
| a commercial crisis tie inevitable conse-
quence of orertrading-of buying annually six
| ty or seventy millions of dollars more than we
sell. 1t Is to be hoped that the reaction COM
| menced in time to prevent general crash, al
though many importers and heavy dealers at
the north and east have gone by the board, and
| others, AZ matter of course viii follow. Mr..
Hunt observes that, the commercial embarass-
ments noticed in November have been contin-
ued, and in many sections Of the country the
pressure has increased, until credit is shaken
every where, and all classes are made to realize
the insecurity of worldly possessions. The
causes which led to this have been long time
at work. The prosperity which prevailed al
most universally up to the middle of last year
had made our business men SO confident in
their own strength, that all classes had expand
ed their engagements far beyond the protec-
ton of their own resources, and were exposed to
the storm which began to gatheron every side,
The first great shock to credit was the discov
cry ofthe Schuyler fraud, which brought to a
stand nearly all those works ofinternal improve
ment for whose successful completion a. large
share ofpublc confidence was necessary. From
that moment sacrifices began, and the railroad
interest will never wholly recover from the
blow. The war in Europe created more orless
money pressure abroad, and capitalists there
were less liberal in their Investments here, IN.
York, at :. time when their assistance would
have been most acceptable. Goods which have
accumulated abroad where the demand has al
most ceased, were crowded upon our shores, at
whatever advance could be obtained, thus ag-
grayating the evil. At that moment, instead
of liberal shipments Of breadstuffs to cover this
new drain u pom our resources, the exports fell
off, owing tP the high prices of cereals in the
interior, and the great scarcity at the seaboard
The failure In the harvests here had been great
ly exaggerat ted, and agrcutursts were led to
hoard their products. The cotton crop, part of !
which might have been relied upon in this
emergency, was kept back by the dreadful raw
ages of the epidemic which prevailed in the vi !
cinity of southern ports. From New York, |
those who had contracted large foreign debtGs
were obliged to send the specie, and this rapid
" increased the evil While this was going on
at the seaboard, worse panic began in them
terror, and especially in the west and north
west. In Chic, Indiana, Illinois, Michigan.
Wisconsin, Iowa and Missouri, and % some ex-
tent in the States on the south side of the Ohio,
A large circulation of bank notes, mostly of the
free banks, lad been obtained through expen-
ditures for railroad purposes, and the general
Of business. When the contraction
began, this circulation came in rapidly, and
found the banks wholly unprepared to meet it.
AS the difficulty became known, the excite
ment increased, and every effort made for re-
lief only heightened the panic All the banks
which had balances at the east drew for them.
and borrowed to the extent of their credit be-
sides, while between 20 and 80, perhaps more,
Of institutions which were really solvent, were
compelled to suspend payment. Alarge num-
Der of private bankers were carried down in the
rash, and the distress became general. The
public mind snow less excited, but the difficult
y is not removed, and cannot well be until there
'e revival Of business, by large shipments of
he produce now boarded. At the south the
wi has not, as yet, been so seriously felt. The
planters have not been for many yearsin SO Sc
ure position, and if the crop of cotton now
making shall sell brskly in Europe, they will
'scape to great extent the panic which has
elsewhere prevailed. During all this severe
PRESSURE IN the money market, and general dis
urbance Of public confidence, it is cause for
generalization, that the mercantile community
AVE stood the trial so nobly. Very few mer-
hants previously in good credit have been
bliged to suspend payments, and even among
he weaker houses the failures have not been
s numerous as might have been expected
he reason of this may be found in the increas- '
d supply of metallic currency remaining in the
ountry. Over 800, O0o, 900 in gold coin have :
'een added to the circulation of the y. States. !;
nee the discovery of gold in California. Thus T
Though the rates Of interest have been high ]
Or nearly eighteen months, there has been no p,
UGH scarcity Of money as has been felt in form
7 periods OF commercial Embarrassment. The +
IMPRESSION now prevails that the CONFUSION has {
cached its height and that having passed the t
rlsls affairs must guadually mend.
We sincerely trust that Mr. Hunt is right
n few weeks all of our south western rivers
ill be navigable, pouring into the Crescent
Aty the products of the Mississippi valley, and y
hereby affording our planters and merchants :
mple means to meet their engagements
The trial of captain Cummings, (of the Mar :.
Ia Washington at Helena, on the cbaroe Of =
49,. II