The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-12-26


in Europe, the failures should rather increase
than diminish in number. Such, as will be seen
by our extracts from foreign files by the Persia,
seems to be the fact while the funds are steadi
ly rising, and in certain quarters very conside-
rable relief is beginning to be experienced, the
number of mercantile failures increases steadi
ly, as well in Great Britain as on the Continent
Of Europe. As the struggle progresses, the
slaughter of mercantile houses naturally pro-
ceeds with increased impetus, each failure rem
dering others inevitable, until the entire body
of the over expanded merchants has been swept
from the commercial arena.
Those who remember the struggle which ac-
companied and followed the revulsion of 1887
can realize at once the movement that is now
going on in the commercial world. The failures
banks, were few in number; il was after the
banks suspended, and especially after they re-
sumed that the full severity of the crisis was
felt by the merchants, and that terrible list of
bankrupts-over thirty eight thousand in all
reduced to take the benefit of the act. The
a general rule. than the merchants of this coun-
try were in 1887; but vast proportion of them
nevertheless have been e1panding-on the
strength of California and Australia-far be-
yond the limits of prudence and discretion.
These, when the reyulsion burst upon them, be-
gan to struggle. Some obtained help from
banks, some from friends some procured an
extension of their liabilities: and thus but q
few only were wrecked and disappeared in the
first outburst of the storm. But as neither help
from friends nor extensions can ultimately avail
to liqudate real liabilities. the ultimate fate of
these houses-constituting full half of the
commercial communty-depends on the means
which can be realised from the sales of their
property. And of the fearful depreciation in
the value of property of all kinds the market
and commercial reports in every days papers
contain crushing evidence
AS the revulsion was collapse of inflated
values, the recovery must date from the inaugu-
ration of new and more nearly intrinsic vahes
The merchants and brokers may be bulls and
bears by turns, and one day see the horizon
couleur de rose, the next, black as Erebus: ]. is
to be expected that the merchants who are in
liquidation will carry on long and strenuous
contest with the new merchants, who have
sprung up since the collapse in order to take the
public may rely upon it, no real recovery will
take place either here or in Europe un-
til all kinds of property, real AID per-
sonal. merchandise, produce and goods Of
every description, fall to an appioxi-
nation to the price at which ihey
Australia have. as is calculated. added thirty
per cent to the amount of gold in the possession
of the world; and If the amount of that gold
which is known to have been absorbed by india
and China be deducted, leaving as a balance
the exact per centage by which the gold dicov-
cries have enriched us; by so much anG no
more may property be rated higher than it vas
in lS4s. We have, as Is known, treated the
California and Australia gold as a wild cat
banker treats his bullion; on the strength of
every dollar We have received We have ex-
banded ten to twenty. and property, a. q netes-
sary consequence has risen in value not fifteen
but one hundred per cent. This error-whch
caused the revulsion-has now to he retractd
No recovery will be permanent until il Is.
The position of the banks Of Europe aifords
no more criterion to the position of the country
than our city banks do to our trade. Nothing
can be gathered from their statements that tells
the whole truth about them, save only the feet
that both in England and on the Continent they
are continuing to carry many mercantile houses
which otherwise would fail. We note, again "a
before. the absurdity of the 80 called inforna-
ton about the Bank Of France In Germany
the crisis does not yet appear to have reached
its climax. and IL is quite impossible to say %
what lengths il may not proceed.
Those err gravely who argue that because
our banks are so rich, and because December
has been 80 calm and quiet month. and De-
cause the commercial community Of England is
recovering from the effects Of the revulson
therefore we shall have no pore trouble and
the spring business OF 1858 will be like The
spring business of 1857, or 1856. or 1856. II
seems, In all human probability. that we shall
be the fret Of all the commercial nations TO re-
cover, and that our injuries by the revulson
will be the least fatal Of any; because we are
a debtor nation. and do not suffer by not
paying our debts and keeping the
foreign goods We bought on credit, aud our
own produce as we'll But to pretend that We
have done with the matter. and that all our
trouble Is ended; that all the notes which fall
due this spring will be met, and that the depre-
chtion which is going on in every article OF
merchandise and every kind of property will be
borne with fortitude and complacency finally
that the merchants who are in liquidation will
all be able TO pay hundred cents on the dol
lar, is wickedly and mischevously preposterous
THE New TERRITORY or ARzoSA.--Tt il stated
that twenty or thirty fat gold and silver mining
schemes are hidden away nicely and quietly
under the movement to induce Congress to or.
ganize the new Territory Of Arizona. If this