The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-11-07


ness, and have corresponded with prominent firms in
Boston, Albany Philadelphia and Baltimore, which
very briefly to submit what they deem 10 be mainly the
causes OF present commercial difficulties on their gene
raj effect in which participate and IN the appended
resolutions the opinion which appears To be generally en-
tertaned by 1.-The Trade in regard to what should be our
practice in credits, We recommend for adoption
The entire mercantile community passing through
Of depression and consequent arrangement
in every department Of business 1t behooves us 70 IN
vestgate the causes of such result and TO recon-
mend the adoption Of course for the future, that will
tend TO restore confidence correct existing evils and pro
mote the welfare Of the trade
We think much OF the present distress may ne aur
buted TO increasing spirit OF extravaganza, IN luxurious
| living. reckless expenditures and excessive credits
We attribute great deal of our trouble TO the action OF
the banks who have encouraged spirit OF over trading
by too readily acoedng to demands made upon them, ~
increasing their discounts and by suddenly contracting
| in the recent unparalleled manner, have rendered
| many of most solvent merchants unable 70
dence is restored and capital again fuHls its legitimate
purposes There has been apparently but little concert OF
taking the ground they take OF themselves,
apparently forgetting the fact that the interests OF the
farmer merchant and banker are identical and that dis
aster Of the one is 10 affect the other. more
liberal policy would have saved many OF our best mer
chants from bankruptcy and by checking the panic at the
have prevented the sad effects Of IT, as well
saved themselves the modification of general suspen
sion.
We also lay not little share Of the blame upon some of
produce panic by creating feeling of disrust toward
a Of Se 90 ee
commercial crisis like the present take pains TO calm
rather than excite the public mind.
We believe present system Of credit s also fruit
full source Of our embarrassments and difficulties. We
pay cash IT'S equivalent for all imported goods
which constitute large portion Of stock besides pay
ING more than fifty per cent IN cash for duties freight
and other attendant expenses and obliged to keen
constantly on hand large stock which we are unable
10 realize on IN case OF necessity except a serious loss
These requirements involve the employment of more
capital proportion 70 sales than any other branch
Of the Jobbing trade, while al the same time
EXTENDED
serious embarrassment Of our business.
II has been the custom OF most houses 70 take notes
from their payable their Office nomnaly at
six months credit The prompt payment OF these
obligations Is very frequently disresa,nded' and
nience Of the debtor. We feel that We cannot too
strongly dscountenance custom so largely calculated to
render the buyer negligent in pressing his collections
and careless OF his credit We believe the time has
fully TO inaugurate radical change in SO defective
system
for obtaining goods long credit does not exist We
getting be and the favorte mode Ct
poration. very large portion Of heavy goods
thus forwarded and although the cost Of ranporta
ton may DC little higher yet the goods are at home
few days from shipment the dealer thus interest
and insurance. and the fact that the routes are open at all
enables him order Often thus saving interest
the overs,ock which would necessarily accumulate
der the old method. II is therefore
Resolved That in view of the advantages arising from
judicous credit system, recommend that hereafter
we sell our goods credit Of six month"; taking notes
for the payable at bank with the current rate Of
exchange
Resolved That for cash payment allowance of per
cent will be made interest at the rate Of 10 per cent
! per annum on amount paid before maturity.
Resolved, That We invite brethren OF the trade in
neighborng and interior cities TO unite with in
| efforts TO establish a uniform system of credits.
Mr.. JOHN W. QUINCY spoke on the report substantially
as follows
The only apparent remedy for the present evil of long
credits convince the community, by facts and argu
mcnts that contrary 70 their interest," and that
nucd and disastrous fluctuations must continue TO
and that their chance Is hardly five centum that
series Of years they will be solvent, If they
tnue these suicidal credits There firms in this city
who SIX months since justly esteemed prudent,
shrewd, acquainted with their business from boyhood,
whose opinion was consulted embodyng well tried ex
perence, and whose position merchants for wealth,
probity and standing were the pride of city. Their
beneyoence made glad the hearts Of the poor while their
nobleheartedness cheered the whole sphere they
igbtened by their presence. Circumstances had favored
them and their business seemed all that the heart Of
man could desire. But how changed. Suddenly, as If
touched by the hand OF God fortunes have vanished
their best judgment and counsel overthrow their hand
of charity paray zed, and the cheeruness OF hope
displaced by the frown OF despair Why this
ohangf They have been unconseousy gay, and rejoicing
over Their financial graves. They were pursuing an
tgHis tauus, and mistcok il for reality. They were
readng path OF credit that the experience Of their
lives, well the thousand living voices around
constantly telling them the path that leads to financial
dcah-yet they needed not That voice cries to this
day trumpet tones cries in the slaughtered fortunes
around il speaks in the crippled fortunes OF those who
stll It, agonies resounds from PROSTATE banks
broken the very efforts 10 sustain those for whom they
were created 10 assist The voice comes from the indus
iIious and starving poor willing labor but labor
Toe Obtaned from the granares Of the West that cannot
be moved for want Of funds from the exchanges Of
country being greater than the profits originally made
the goods from imitation Of stocks that have assumed
fraudulent and lying garb from irrational outy in Shoes,
dwellings, dress, equpago and entertaLm, us exhibiting
extravaganza sufficient TO shame republican simplicity
Credit a reasonable extent Is desirable. bat what
basis Of credit, viz integrity, has been TO- inuch uner
mined by extravaganza and contempt OF serious ciga
tons to be reliable Wise men who were called oraees
81 wisdom in finance all country, have failed,
and their fahily Of judgment proves that general
rule profound wisdom in systems Of finance winch
has control practically sublime nonsense. John
Randolph said lac had found the philosopher stone II
pay you go, and no person since his day has
panded much exploded his system Of credit.
Franklin says, " he who goes borrowing goes a
ing" We have practsed the opposite course TIL every
hoy in farm house is bcwildered with the rich and mag
ninccnt ideas he gets Of city life and wealth and thou
sands leave subsistence Tor butterfly show OF a
few years and dependent existence afterwards We
wish 20 turn back this tide Of emigration; should DO
from tho city TO the country FOR the merchants are too
many and the producers too few. The wide spread
disaster Of to-day them 20 consider and keep back
The evils spreading every from the Atlantic
the Pacific ocean from New York 20 California, traders
i and the mercantile community arc being crushed,
/ while the echo comes from Europe that England,
\ France anu Austria, with their tecmng millions,
re suffering from the miserable effect Of our dc
ere Of credit the reaction OF which sending
forth heartfelt groans from these troubled nations.
In the language Of another, - has produced oombna-
tons by Of which the Of food has been ut.
reasonably increased, TO the great injury OF those who
were in moderate circumstances especially to the poor
and this has incurred the guilt q extcron Il has nled
society with luxurious sensualsrn which has already
gone far the youth Of the land who grow n
w under its influence, has cngendered monsirous
spirit 81 speculation destroyed much of faith In les
latye ytue-produced borrid progeny of fraud among
men holding public and private trusts and, by these
has eaten canker into the very heart Of public
confidence But the half has not been told. The most
/ lucid pen cannot depict the slcopless nghts-the
/ brain racked with the thradom OF existing and
4 unsatisned debt-the individual and family distress
that false system q credit has ushered into exist
The end s not yet; and human forethough can
point 10 the day when We shall receive last
for the reckessness with which have treated past
experience II We turn eyes backward thirty years
aud observe the facilities ~ that day compared with the
present, for the communicating Of intelligence and the
transportation Of goods, will appear obvious tina, thirty
days now would be more than SIX months then We
changed horseback with the saddlebags and the stage
coach 81 four miles hour 10 the railroad from thirty
forty miles an hour We have changed the heavy bag
gage wagon and un~orsed and hily roads part
cuar speed per hour for the and certain speed OF
the locomotive. We have tho swft and noble lines az
steamers for the wind bound and packets We
haye too. The telosraIh: thing .l.cf can