New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1857-12-16
NtmWork Dailu Gribm,re
LETTERS FROM THE PEOPLE
CREDIT AND THE CRISIS.
. ~ IditeT Of Thl ~ " TrAt~n

CkEDIE AND THE CRISIS
To ~ Edsfer " Tls N. Y. Trf1t~A
Sir: Your courteous notice Of nv former comnuri
cation encourages me to ask sufficient space in your
columns for . few suggestions in reply. You say,
whoever undertakes 10 correct another should b
"sure Of his own accuracy" In order therefore, TO
b sure Of my owH accuracy, give extract from
a editorial Of yours October lJ It ought TO be the
Every frst inquiry respecting . merchant wanting
"credit ofimporers commission houses banks, does
"he sell goods time out Of the city and if be does,
that should Be reason enough for REFUSAL" Had
your inquiry been, does he sell goods On time IN the
city, We ahouId not differ to the prophety Of bic
"rsfu.a." Your theory, strictly carried ont, would
cut of every jobber in New-York. The few houses
that profess to sell exclusively for cssh consider pay
ment in thirty days cash. and consequently voud
M der your policy, DO refused. The greater portion
Of the busness Of this whole country has always been
done on credit; and, though individuals have con-
staptly failed, and at times sweeping revulsion like
whole the country, in point Of wealth, is probably
century in aovNce Of what 1t would have been,
had there been no busitess done except for
cash. Yet it il clear that cIeo has for years been
growing entirely too cheap. This hiss been brought
about by transportation and over-prodIction. More
goods have been constantly on the market for the Last
i've years IAN the consumption OF the country required
They have consequently been 3 " drug" In such .
state of things it is not TO be wondered at that credit
.houd be too cheap. The process OF reduced produc
ton, now going on both here and In Europe, must pro.
are not likely to be overlooked With goods either for
eign or dome stic and Quently the importers,
commission houses and iobber viii al be enabled 70
eerate the standard Of credit. That what is wanted
not to destroy credit but 70 place 1t on more solid
basis. You ray mo man should undertake to sell
goods without some capital" Precisely co. and that
capital .boud oonsis. Of about equal proportions OF
cash ard capacity For instance, integrity, economy
;vNu INDIGNANT
courage are uet much capt. as moray and equally
essential f not sol to success in business Let
the inquiry among importers and commission houses,
when spilled to by the jobber for credit be: Dses
"the applicant posress First sufficient smsuot OF
leash capital to warrant the business he is dong
Second has he good capacity 1ar&, are hs haoit:
his income Fifth, does he dsbble in stocks, real
"etae build fine stores and houses edit ne Espapers,
or engage in any other outside operations or does he
give bis hole ate ntion to the bust 10 which he n
judgment pertinent inquiries and will afford quite
good guide to the granting of credits both to the
city ard country as your inquiry as to whether he
sells goods time out OF the city," .
You ask, "does our correspondent dispute ourcsrdi-
proposition that the eonsn"e5s ofgoods should R
port ne agree p'e1RM %t . more Tine IN
coming to the city buying goods a1d getting them home
in remote parts Of the county than 70 generally sup
posed Then all kinds Of prSduc; must n DC TX r N
waIded here and cold on time. For instance, wnen
butter cheese and such articles are SOLD mere ior cesn
the commission men generally manage 10 Tness
.1ticI.s Cannot always BE- sold promptly whom they
reach the city. They are frequently held s!ty and
ninety days before beng sold. might mention nu-
merous other delays which make it necessary 70 give
the country merchant time than four months, 10
order to give HIM no excuse for not being prompt II
Will be better to give sufficient time for all prsctcal
purposes, and then insist upon Promptness. Let ~
- to law mr. taut. but lat uG hOlQ ELK
mSn.hs TO mean Six months, aud no more
Anew words in conclusion - to " tbs value Of mo
" btedpess Of tho West TO the East" VI eourse,
talking about legitimate e. .n asDS M. .os
be UGH less than city per cent. In my former com
munication, eniioned that the indebtedness o. me
West 70 the East was less a. the present hne thAn
II bss been at any time within Eve years at the close
OF the Fall season. We all know that this il true, FOR
the reason that the trade with the West both Spring
and Fall, this year, hss been notorousiy hghL On
the other hand il universally known thst tne Mes.
bss nearly or quite double the quantity OF produce
ths wear that has had for the last ten. Now, no
such loss a. you estimate has ever been suffered upon
debts due from the West, in any year within mo me-
mory Of the oldest merchant. On the contrary, ns!
year q, the year before when they owed mere And
lad DC crops the greater portion of the debts were
maid. Lot promptly, bat psio IL it not reasonable to
suppose that with more to pay with and less to pay
they viii do no than tasg have vSo
richer and le.s embarrassed TO day than the manu-
fscturen Of Nev.EDeland, sell their grain and pork
for cash and buy their cloth and shoes on credit T.
Precisely So But when tney nese ooage. t0er t't ~
sell for ca.h can they honestly fail 70 pay the country
merchant, and the country merchant to Pay toe city
You lie, y; be
"ceives $4,000 this Fall, go, 900 nett Spring, and
"S4O coo from time to time within the next two yess,
"making go 00o, or 70 per cent m au. Wiil any
man contend that he actually receives more tnan "
t.iniy net But q iobSer having $1,000 due him.
taysbe this FALL if be has sold his goods with any
Kind Of udgm ent to the West. ought With proper ai
aerce, to collect $3o ooo ms Fan, neA. Spnns,
year: and thai consider 20 or 40 per cent better tnsa
t5O cents on tho collar punctusny paid would have
BEEN"
depostors and custoner and not diverted their fsti-
tes fiom the regular commercial channels into tie
hands Of stock gsmbler and fugaI cpecuascIs many
Of them bark directory there would have been no
panic, NO interruption to the regnl.1 course o. ous
rsss, and the crops would have been brought % maj
ket and wiped ont the sreater portion OF the indebted
ness Of the West to the East before the Let Of Jsnus
I'VE let d" Merchant" have his say this time IN
answered; since he seems incOrrisible. He is do
termined not 10 see that We have for several years
been Aurryipg toward the catastrophe which has
inst evertahen Us tia. We have had high prices for
our Produce because Of this infstioa Of crcdits--
and that any attempt On our put 70 stop running
in debt and begin to ply up Of % tie other side
collect Of Us, was certain to produce di,sster. He
won't zee tAst many Of our famers can't pay their
,tore d<bts beesu,e their produce brings but ono
fourth 70 three fourshs The prices Of last year. 50
We drop him. ISL