The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-01-26


shipping, &c. ....... ................ SoOOOOOO
Do on articles OF import ation ....... 35, 1000
Do on railroad and other ccrporated securi-
ties in 1857 alone, about. bO,OOO,C00
Total .... S203 ,S46 $50
1t is estimated that the railroads in the United States
cost about thousand millions of dollars and that by
the depreciation in their bonds and stock in the past six
to eight years. that about $500 900 900 Of that nominal
amount Of capital has disappeared about $50 Of
which, with other corporate securities estimate
sunk during the year Of 1857.
This general view Of the subject is liable to some vara
ton on account of the uctuaon the prices OF articles
within the last month Thus cotton has recovered
nearly two cents per pound from the lowest point current
about the close Of the year. nearly 81 80 per bale,
which, applied TO about 900 bales Of the estimated
crop OF lS56-57 remaining in the country makes total
increase Of value equal about s1s ooo leaving de-
crease In value other change occurs compared with
the previous year, Of only about $S3 ,26o,o00.
Cotton and tobacco form almost the only exceptions to
the continued decline which pervsdes the markets Of the
world for all other articles OF commerce..
By scrutinzng the chief Of failures and bank
ruptcies shall find that they were brought about by
The extraordinary expansion of the credit system and in
aon Of prices induced the action Of the banks bank
ers and moneyed corporations Of the Old and New World
When barrel Of pork pushed up TO ga per bbl,
-four 10 $40 per bb wheat 10 81 PEI bushel sugar TO
&c., cotton To l6c and &c., and coffee l2c and 6c per
lb and the revulsion came, the spectators had 10
let CO. because thu banks found themselves unable any
longer 10 sustain them.
The trading peso had for some time based Its credits
upon the prevailing high prices OF produce and merchan
disc Bills had been made and notes given 90 days 10 six
months predcaed upon the prevailing high prices Of pro-
duce noticed above Hence, when the breakdown In the
artincally inflated prices came-madc more stringent and
by It's ipcies followed every
side People who expected to pay pork at ga per bar
rel find its value reduced 10 SIS Their four instead Of
selling s0 has 70 be sold at S5 and S. their wheat at
81 rs 81 S. instead OF 81 sugars at 6hc 7c instead
OF 13c cotton at 10c. instead Of 15c. Ice; coffee at
sc l0I.c instead Of 12c. 10 13c. for Rio and other
articles In about the proportion and railroad bonds
stocks with bank and other corporation securities,
instead Of at par, at so cents the dollars worth.
The less on leading articles Of importation may
be judged OF by the comparison Of prices
which they bore at the close OF 1855, with
those al the close Of 1857 The articles which
the largest losses sustained on East India
goods and especially naxseed and spices; the mpor
Aon Of hides from Buenoe Ayres and European manu-
featured goods including silks and other articles from
France.
The losses sustained on imported goods and merchan-
disc can never be correctly asccrtaned and only be
approximately estimated with articles OF domestic pro
duce an average OF not less than about rs " 80 per
cent chiefly realized within the last six months Of 1867
The whole amount OF exports for the financial year end
ing the Both Of June, 1857, $50 $50 $780, Allowing
the exports for the months from the Both June the
3lst December 1887, 10 be about half nominal value,
1855 Io3 i6S, decline OF Is per cent this would
give total falling Oh in value OF about s3s s23 ,29l.
The ratio applied TO the produce remaining in the
soth June, 1855 will give about equal amount Of de
cline value Of about s9s s2s 5s2-makng grand total
OF about s77 ea65s2 But as some articles, such cot
ton may regain good portion Of the decline before the
products reach market, will be safe 10 tx the
rage loss at rs per cent The imports for the year ending
June 80 1867 amounted s34 ei2 which would give
the imports for the half year ending 3lst December 1887
the ratio, half that amount about sl57
But the mportaons rapidly fell of towards the close o
the year and prices also in many cssened by
the operations Of the late Tariff act may reduce the
estimate about sl4o oos ooowhioh at average loss
OF about Is per cent would give s3s 600 The loss
on raw wool and the products OF the mines,
Of the forests, and OF the fisheries, and
with the depreciation also in the value OF
shipping and various other kinds Of property and pro
duce may be set down about $50 more, making
up the grand total a. stated in the foregoing table
These aggregate losses exceed the amount Of the total
s.scs by failures in the the United States in 1857 which
were estimated sl43 ooo yet they bear some pro
portion them II must also be rccollectcd that many
large houses who have neither failed suspended,
have ye, suffered immense by the revusion and
which, taken into the account would probably swell the
amount Of Losses 10 the have embraced In the
foregoing table. n apply similar test 10 the losses
sustained by failures In Europe shall find that similar
causes have operated 10 bring them about and tina, the