The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-11-08
Some or the Minor but Remarkable Effects
Of the Financial Revulsion.


II must not be supposed that the effects of the
money panic will be or are confined to the sus
pension of banks, the insolvency of railroad
companies and commercial firms, the depre-
citation Of paper securities, the withdrawal of
work from the industrial classes, and the gene
raj paralyzation Of trade. II has brought
about, and will bring about, changes which,
though they may not be Immediately noticed
will exercise a considerable influence on our
habits. In fact, it may be said that the none
tary crisis has metamorphosed our whole social
and business existence. Whether the metamor-
phosis is to be mere temporary affair, or
whether it is to be of long duration, is mat
ter of speculation into which we do not care to
enter, and which may be safely left for time
and circumstances to determine. Some few of
the more striking features of the change, how
ever, may be proftably noticed at this time, as
they will form texts on which to base argu-
ments and conclusions.
In the first place, it must be apparent to the
most superficial observer that the policy recent
ly adopted by several of the largest importing
houses in throwing open their warehouses to
retail purchasers at wholesale prices, is destined
| to have the effect of changing the whole course
of trade as between importers, jobbers, re-
| tailers and purchasers. The last three weeks
| have opened the eyes of the New York ladies
| to new channel to rich and rare goods. They
find that in the importing houses, opened on
the retail principle, they can buy for twenty
dollars what some months ago they would have
had to pay forty for; while, at the same time,
they have unlimited assortments to select from.
And while they can thus buy at fifty per cent
under former prices, it is not pretended that
the importers are selling at very great sacrifice.
They may be selling at less than the jobbing
prices; but that they can afford to do, inasmuch
as now they sell for cash, while they themselves
buy on credit and would have to sell to the job
bers on credit.
With the insight thus acquired by the ladies
| as to the real value of silks and dry
goods generally, it is not to be supposed
that they will readily consent to re-
turn to the old system. 1t seems impos-
sible, indeed that that trade can, for long time
| to come, get back into its old channels. 1t was
| no wonder therefore, that the retail dealers
| protested against this revolutionary course of
the importers. 1t has ruined them for the pre-
sent, and its effects will continue to be dsas-
trous to them even after the new plan shall have
been discontinued, it, indeed, it ever be discon-
tnued. This system has been carried out for
years by Stewart q Co., and with great profit to
all concerned. 1t has now been, under the pres
sure of the financial crisis, resorted to by other
importing houses, and they find it to work we'll.
1t has enabled them to realize hundreds of thou
sands of dollars for goods which otherwise
would have lain on their shelves for many
month, or which would have been re-shipped
to the manufacturer. Instead, however, of its
being mere temporary expedient we have
no doubt it will be the regular practice for
importing houses in this city to have q re-
tail department at which goods can be sold d.
rect to consumers at profit of from fifteen to
twenty per cent. Importers will find this much
safer and more profitable than credit transac-
tions with retailers, and consumers will effect
saving, ss compared with former prices, of fully
twenty per cent 1t is quite usual in Paris and
other Continental cities Even manufacturers
there do not refuse to sell goods at retail.
To be sure, the general adoption of such
course of business would prove ruinous to many
of the retail dealers. But il seems now to be
inevitable. Should the old retail prices be put
up again, there would be no purchasers. Ladies
have rendered a successful recurrence to the old
plan impossible, at least for years to come,
as they have taken advantage of present
| circumstances to lay in large stocks of goods.
The breaking up of retail business in this way
will necessarily cause large numbers of stores
in Broadway, the Bowcry, Canal street, and
| other business localities, to be left vacant and
will thus operate in causing great reduction
| OF rents. There will not be many complaints
If this latter prediction should be verified, for
the rents of business houses aBe held at rdcu-
| lousy high figures. Dwelling houses will be
also affected in the same way, but not to the
same extent A corresponding advantage will
probably be found in the increased number
of strangers who will be induced to come here
from all parts Of the Union to make family
purchases Thus, the good will, as usual,
counterbalance the evil.
Another very important alteration in the
course of the trade will be effected by the short
credit system, which is being everywhere advo-
Gated and adopted. There is no good reason
why country dealers should have goods on six
or nine months credit. II is not necessary for
them, if they cannot afford to pay, to lay
in more than months or two months stock
at time. The telegraph and the rail-
road remove oil difficulty on that score.
| The excuse that farmers will only nav for their
goods once or twice a year is frivolous, be-
cause, rs class the farmers can afford to pay rs
they go better than any otho class In the COM
nifty. There is no season Of the year at which
the farmer has not some species of stock or
produce to dispose Of; and be should not have
facilities extended him 20 as to enable him to
speculate on q rise. Viewed in this light,