The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-10-26
THE COMMERCIAL CRISIS.


The following invitation requesting the attendance
Of the members of the hardware trade brought to-
seth q large representation Of those engaged
n shat business yesterday afternoon in the Astor
House
Yoa requested to attend gen al meeting of the
nsak he 24a, .. O'Clock 2. for the purpose Of
saeTipS be ume OF credits, 81 present alo sed, and
subjects contested ~h the present embarvasmena
Il sds Toe meeting called by order OF the Exc ,auye
oSsnnisee Of The alrow.rs ps.lers Had Of Tr.ds
J, DAVENPORT. Secretary.
There were about seventy members of the trade
present and although the meeting was merely pre-
lnninary, the greatest interest was manifested in its
proceedings. Mr. L. Corning presided, and Mr.. j.
Davenport dictated IS secretary.
The PAEslDErr, in calling the meeting to order,
sid that the object the appointment OF a COM
mi.tee which should report on some future day in
regard ID an alteration in the time of credits
Mr. QUINcY then addressed the meeting on the
subject of banks and the system of long credits as
follows
The laws Of nature are the laws of God, and they
ore wise snd always successful. These laws operate
rs positively in the mental az IN the physical world
as much in the laws of trade as in the planetary
system; and the man who attempts to control the
currents OF the ocean, OF 70 reverse the course OF
abe Hudson river, VIII attempt no more DUH suit
task than I'd work contrary TO the natural laws of
credit. Mans capacity does no. admit OF his fully
comprehendipg the la VS. of mind matter, nor all
the movements OF the productions Of the EARTH their
quantity, their location, the supply aud demand.
The political economy OF Europe and America
has been q subject o. profound thought OF the most
powerful min IS, aud their results have been as wide
the poles as vide ss general prosperity and tne
adversely OF the present Beyond a given depth
the human mind il positively Incapable OF grasplng
IT. and what more feeling demonstra ION of this fact
than the financial dtion of orr country ut the
present times. This state Of disaster is not new
thing; but periodically, ever since We have been
country have such seasons os disaster and com nef
cisl distress been known.
And whilst human nature remains as IL Is such
times ever Will occur, for IT Is imam nature rather
10 learn from our dyn experience than iron the ex-
perence Of othe's.
It i also natural to make stalking horse OF 9TH
ers Tor our own faults end in the present crisis it
would be well if We could lay our tro1b'as 10 the
banks, 10 the press or any other source than our.
selves But there is another view TO be taken of the
banks and their officers they are men, like our
selves, aud liable to err. They are stockholders,
and merchants ike ourselves. II the stockholders
do not look a. the Interests OF the banks, who will
look TO them?
Banks are rot created entirely for the merchants,
bat the sto Kholders are known TO have some inter
est in them, and there is no more reason shy they
shoqla be so self sacrificing as IL loose al their cap
tal 10 accommo late their customers taan there Is
that the merchant should loose all 10 accommodate
his customers. The merchant has pad 70 give ex
tensions 20 his customers, and tbe banks have
done the same II the merchant has not means 10
give required extensions aud pay his own o6iSa-
lions re must suspend or fail. tne position OF the
banks is the same. Why should We expect more or
the man as a stakeholder or Officer in bank, than
IN his VII individual businesst We shall ind no
iifererce. as n merchant he has expanded ba-
yoni what the laws Of trade allows, and to AVOID
being disnonored calls upon his bank TO accom- no
date bis necessities and iniudclously dong this
abe bank breaks. i say iDlndiciously, yet whsre
does the wisdom lay 10 say this Is iojudiciou& 1t
F.1tsr x1lh "a hauk
itself ard It's action condemned by large IN notity,
vet the majority rules and The action is taken; and
We are Driven 10 the conclusion that mans wisdom
II no; a equate 20 control the laws Of credit except
within very limited sphere, and this is further
proved BY the lea fal statistics OF the past in
camille lie, that has stated the successful mer-
chants who ole leaving fortunes, without ever
having been protested, being from three TO i've
per cent only OF those VINO engage IN business
Whilst then We charge our errors upon the banks
We should have charity 10 suppose ct The time they
did the hest they COULD for il was n more their in
felest than inst of the merchant 10 suspend
and throw their assets in such ruinous confusion.
Every merchan. knows taat he who relies upon
bank discounts mlst be liable 70 be least sccemmo
dated when be waits the money most; for when
tbe money market Is stringent, they VINO naya Kent
large bllsnces and used the h.,.aKs The least. are
compelled 70 call Tor dsscounts by the law of right
tbsy soos % served. Toe very necessities OF
las NJ l.nants create the necessities Of the backs.
Tne whole system Of long credits u radically
wrong Nv tins system the banks become an insu-
per,bl. necegsitv and this day tells son were rs no
rsfefy tor M rchants with hundreds OF th 1ussnds
az airplus 10 relS on banks; for YOU viii tIust
TO Z broken reed, that in the day OF necessity VIII
run yo1 through Banks are valuable, indispen saby
valuable aailariSs T. trade; they are useful as au
incidental reliance, and they Will aid ana pront
Who thus use the M but the fearful disasters OF the
past arse from wrong appreciation OF the use
Of banks and blind use OF the system OF credits
VAR ,us attempts have been made 70 shorten credits
In this country 5ut the result has been only partial
and temporary. L. should be the result Of individual
conyi etn and determination 10 SIT az less profits
than ulh1,s who eel on lolger time; and expenses
and other things beiag equal the greater success IN
a series OF years will follow short credits Comb-
nations aud agreements on such subjects are
undesirable and are Often evaded, although mn.
tnal unwri,'en understandings may be desirable. III
Cur 81 teI OF credits could be reduced Onethird the
position Of our merchants and OF the banks would
lie more pleasant and profitable than We have Tor
years seen them.
The scripture doctrine is" Pay thy debts, owe
no man anythirg;" bu. our long credit system too
often practically results" wing thy debts, and pay
no msn abyibing" II has been said that the press
IL az fault Ia alarming tho public mind aud destroy
ing confidence. We have reason 70 t1aLk Heaven
we lave free press and that the voice OF publ :
opinion is not husned by the dctators muzzie The
Tire voice OF tho press has been various-somehmes
aonontory adSisory and exhortiny 10 economy IN
importE-sGd az other times has been charged with
Eubservieucy and speculative designs. There mag
have been those who had selfish ends 10 eco npsh;
but a. q whole they have spoken loudly Of the ex-
xavagances In dress, in living. In superstructures.
and IN oil that eneryates and ~eakens the financial
condition Of the country. Long since the press 70
claimed from ia own editors aud from letters Of dis
tlnruished civilians that the last alteration Of the
,arif would produce results such We nov wit
Dess.
m il not the press alone nor the hanks alone nor
the system OF credits alone that occasions this meet
irg t-dsy: but Ia tie want Of Independent thought
On an these subjects, and the OF ordinary com
mon senre Credit and business as taught us ny tie
Law ~ nature ia simple and beautiful; cat taught
hy the righteousness Of man, is complicated and
abomnahle. II Is not through resolutions and long
drawn theories and arguments that we are 70 he
h'ed fro this slough ~ despond, bat u Is by due
my aud activity, by spirit Of forbearance and
belp, and through hard work and hardware we viii
hope that the good time will not lie long comilg.
Mr.. FsAScts Mtgy offered resolution that a
comm tee y Eve gentlemen lie appointed TO pre-
pare resolutions expressive Of the sentiments Of the
tlede mon short credits.