New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1857-11-18
CREDIT AND CASH.

To the Edite, eS The NJ Y. Tribune.
SIR. For the last two months you have had much
10 cav upon the subject Of the financial crisis, aud
recomne pded many remedies for existing evils. You
seem to be exceedingly partial to the cash system,
ard advise the importers" "commssloa houses
and banks to refuse credit TO ell "jobbers" who sell
goods to the country retailer on credit. There can
be no doubt that the credit system has been greatly
ebused ard 1t is very clear that credit has been for
the last FIVE years too cheap On the other hand 1t Is
equally true that any attempt to reduce the whole
business of this country to cash would be IDLE ana
ridiculous Credit has always existed and Will con.
tnue 70 exist. The sensible way is to regulate ana
restrict il to its proper limits. What that limit snoao
be is matter upon which there is diversity OF
opinion. Ii Is highly probabe that the "Joboing
merchants cannot fix the time at less than six months
and be enabled to adhere to il. Any longer time
cannot possibly be Even with safety and shorter time
would not likely be Sustained. But promptaesS must
be insisted upon Let il be understood that country
merchant who neglects b pay note at maturity has
note goes to protest Let all notes be made pay
able al The bank. Such an Improvement could be
made and adhered TO. But although credit
has been too cheap, it does not follow that yoar
estimate Of the velue of the indebtedness OF the
West to the East," is correct. You say 1t IS not
worth fifty cents on the dollar" Such an est gate
can only be based upon the presump ton that ABOUT
.one.half the Western merchants are ABOUT 70 turn
East" s no doubt less to-day than 1t has been a. any
time within FIVE years a. the close OF Y Fall season.
Every "houee" doing business weh the West vii
tell Jon that their trade this year, both Spring ana
Fall, has been unusually light. This fact Is notorious,
and eeds argu nent. On the other hand II Is I'M
qrestionably true that the West has nearly or quite
double the quantity Of produce that 1t has hal 10 any
year for the last Eve. Now il they owe less aud have
twice as much means to pay with, can they honestly
fail TO psyI 1he natural inquiry arises. II they can
pay, why don't they I" We answer: First, the price
of produce has been 20 much lower than for several
yesIs pact that it natural that the farmer should
be reluctant 10 sell. Second, the banks were unable
or unwilling to furnish the facilities las they have
always heretofore done TO buy the produce Aud
third the lack Of confidence in the money offered Ia
addition to this the failure Of the trust Company"
and other " Houses" owing large balances TO the
west. not only locked up large amount of exchange
puI created oistrus on the part OF Western banks
ana bar kers which led them 10 refuse to keep bal
apots IN the East The effect 10 put up the price
OF Exchange 10 an exorbitsnt late, which produced
another ardnOaek upon collections from TIE West.
notwithstanding al this, the produce is moving ex-
charges are improving, and collections better. The
eff Ct is already apparent.
IL Ia an insult TO the honest Of the West 70 say
that they will not pay more than oue.hslf their in.
csbteoress and an invitation to the rogues to CON.
promise their debts st your estimate.
Your paper has wide circulation AMI the opinions
you express have great influence fr good or for evil
IL is believed by many Of your sdes that Won have
made great bunder in putting forth such ertraya-
giant assertions. Overhaul your dgures and R found
wT0Dg le. your readers hear from you. MxRcHASr.