The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-11-13

sAnnos with any propriey at all be compared with the
snwArrantsA& panic and reyulsica Of 1857
Bat The panic was . fixed fact II became chronic
there was no reasoning with IT, there good and
vnfd reason for tit existed nevertheless and
Nv post up and calculate the results
m DE question ssked, and an answer TO he given
A., -. sentence what has been mainly the cause OF the
uan,c Of 1857 would reply:-The expansion Of bank
Sans-disceuntins call upon deposits.
In hi manner banks have been filed with the
ncang debts Of Western and Eastern railway companies
the OF all companies and which would never have
been created allowed had not this unfortunate
vent such loans existed This system or floating debts
hAs broken down most OF best railway companies
aid the immense OF this class OF always
apon The market and Always taGn up by the hanks IN
Sueh times attracted the OF the well drilled and
pest summer and rise 10 the furious studied and
successful onslaught made day by day for weeks and
months, upon the character and credit Of almost every
eadng railway company in the country. These attacks
Of the street stimulated by portion OF the daily
press having knowledge of the existing facts Charges
II robbery, cheating and maversaton Of office were uni
versaiy believed; the spark thrown OIL thai was TO
n,te and render combustion certain the nervous aud
.,d became alarmed the facts alleged against corpora
individuals led 10 the conclusion almost that
honesty and integrity had left the world and All comb
dencs in and things seemed as things that were out
81 date This brings down 10 the latter part OF
August, 1857. The failure OF the Ohio Life and Trust
Company capped the climax, and from that DAY
~ the date OF this writing the whole move
s,ent of financial matters has been characterized
by the suicidal imbecty and nfatuaton would
seem had actually taken its flight from
the world Admitted-there has been shocking wreched
management railways, trust companies SC the country
and stili have remained intact sound and healthy. We
have railway line in the United States for the whole
miles each side of the line could well afford be
taxed rather than that the rax should be removed and
che track poughed The railways the very back
bone Of the whole country and the idea that every and
then takes possession of the vaciating gentlemen who
around discount table in bank parlor, that
they worthless and nuisance, almost, is q
very erroneous idea, badly based, and, as
we see now, of very bad effect The country
d rich IL material wealth beyond all prece
The great OF the debts doe from the country
the city good and colectabe just as soon as the
crops can moved forward II the panic had not
Surred in september as did the months September,
October and November would have witnessed the trans
fer Of the crops from producers the city the
debts due 70 the city would have been paid, and the
vuson could not have occurred at ALL the very nature
OF things There was nc necessity for bank curtament
IL August September all; there demand for
secie which the banks could not readily and without
damage meet and the export OF crops OF corn and
cotton would have supplied abundance OF exchange on
Europe reduction Of discounts of million per week
would have been felt; reduction Of thirty mil
lions in six weeks has upset the whole financial basis OF
thu country. and will cost In depreciation OF our main
staples at least hundred millions OF dollars So much
Cor most unwarrantable and groundless panic
What the present results upon the internal and
terna trade and commerce of the countryY What will be
the resutsf These are vitality important questions Can
any satisfactory solution be givens
Substantially the whole business community in
dead lock for the moment The few who meet promptly
their obligations do great loss and the majority have
quietly suspended asked extensions The debts cannot
be hquidated until the crops are sold.
The banks cannot with any safety their stockholders
regard for the public Interests specie payments
uut the actual liquidation of debts fairly commences When
will this take pace Not until after the opening of nav
CATION the spring of 1856 for Western and Northwest
debts. The railways, this winter will be taxed TO
their utmost capacity but the crops mot all be moved
from long distances by railways aud the probable prices
Of the for the will warrant rcmunera
tive rates for the railroads The cotton of the South the
great balance wheel OF nance) will bring around
and the crop Of cotton Of 1881 would itself bring the country
Of trouble so far foreign exchanges are concerned
ard would have done so any time the last two months
BY faithful investigation and application the local
GENRES of trade throughout the country will be found
that the farmers, producers have the whercwith 10
pay the country merchants; consequently the country
merchant pay the city merchf ut. ana the city
chant pay the bank, the importer and commission
merchant and others ana thus only the debt be 1u
dated This IL as simple rs B c. II may crafty the
vanity of banks 70 resume specie payments al once
here OF specie and there has not been any
ssut or any undue demand, excepting a and de-
aand caused by the banks themselves; but until hquda
,on Of debts fairly commenced based upon actual re-
eeipts, redemJtoo il idle and will be unavaing.
The results q Charivar Europe yet 10 be
fully and appreciated Our troubles come upon them
ri meet nopportune moment They have local trouble
enough their France with It's credit mobier and
nded speculative disposition Of the past or two,
and England, with two on hand llndia and Chna,
poorly prepared for complete stnppase OF American
retances and withdrawal Of coin for cotton and corn,
both actual necessities. IL is mistake TO sup
pnse that in America arord 70 be isolated We
cannot and free Interchange Of products and exchange
Al about 09 which nearly par is the safest and sound
est state Of trade that could be desired.
The worst hss been fairly passed, and have nothing
% fear for the future The next nine months will qui-
date three ouTths 81 the amount Of debt due from
try city, and from city banks and N Europe. The
whole country will emerge from th. hubbub richer and
wiser. Doubtless there will be much individual suffer
lg-dcubtess many wrecked estltes, bot with y fair
reasonable amount OF leniency shown bet debt
and creditors and with honest and vigorou. efforts to
pay debts next summer will see all danger passed The
wheels Of trade and commerce Will move again ~ OF old.
snd by and by shall all wonder at the unmany and
unnecessary fright which characterized the closing por
ion " 1851 hERCATOh