The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-01-11

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ton contraction, econbmy industry energy, &c,
We shall rapidly recover from the present depres
sion aud inaugurate more healthy state Of
things in commercial a6Airs. relapse u
more to be feared than anything elss
and the only sure way to avoid suc'
certainty is to attempt 10 morcsuspt not int
inately and directly soininiettea With gradual an
a. "sdy restoration Of public credit and confidence
Saw. alton in fancy pa ''road stocks has been tn
sr, as,,. euse Of o,,, A.. ocial revulson. Hardl,
man of ~ means in th. q "nnuh''! mas escaped
losses by suca operations TkeA "p'eo@''on M mar
bet value, Is soos ~ the public h '"w. 'A'''neu
the worthlessness ana rottenness .. $50 ''UoA'
wiped out, almost at one sweep, hundie. -,
dreds of millions Of dollars. So far az ttse '
these securities were concerned valuest,. ,D,
NOUS amount were annihilated as esectuslIY asa
afre had swept away so much property. II hascA
been stated that the great fire of 1886, where nesr
twenty million of property was destroyed, was tin
first great cause Of the financial and commercial re-
vulsion Of 1887 The twenty million Of property in
the shape Of houses and merchandise destroyed by
that fire in one night, was not more effectuay re-
moved from the owners possession than the hum
dreds Of millions of property in the shape
OF railroad stockSN were annhilated by
the depreciation in market value in 1857. The
immense imitation in prices for these securities was
entirely Of fictitious character, and the value was
merely represented. 1t existed in the minds Of
holders, bat it was locked to and depended upon TO
provide the means to meet direct payments, and was
considered as available 80 much bank paper or no
much gold. So long a. this artificial value was slis-
tanned these securities answered the purposes of
much currency, and were used as such in the lqui-
dation of more direct individual indebtedness The
destruction OF this value amounted to no more or
less than the destruction Of much paper currency.
The total bank circulation of the country in 1857.
previous to the revulsion about two hundred and
fifty millions of dollars-a sum much smaller than
the depreciation in few weeks of railroad securi-
ties. We can easily imagine the effect of the with
drawal in short time of the entire bank circulation
upon financial affairs, and can hardly doubt
that very severe revulsion would soon be
the result. The depreciation in the market value
OF railroad securities to the extent of hundreds of
millions of dollars would naturally be even worse
than sudden withdrawal of much bank cur
rency for the banks would hardly expect to get their
notes without quid pro quo. but in the railroad
securities it has been a complete wiping out of so
much value. Holders of railroad stocks have nothing
to show for the difference in value; they have no
CLAIM upon any responsible parties and the losses
are therefore absolute and can only be made up by
future earnings and by strict economy. We have in
this simple fact the whole cause of the present pros
traton, and the of the hundreds and thousands
Of failures The remedy is equally simple. In the
first place, every one must get out Of debt in some
way. and then settle down as far as possible upon
cash basis in their future operations This with
economy in all expenditures, and determination to
do more business than can be done safely and
upon legitimate principles, will do much not only
towards removing all vestiges Of the present revu
sion, but in restoring and sustaining a sound and
healthy tone to the credit system.
The steamship Africa, at this port from Liverpool,
brings us three days later news Financial and
commercial advices only days operations.
The Africa sailed Saturday the 26th OF December
and the only full days business from the previous
steamer was the oath. Friday and Saturday were
holidays The financial accounts are favorable.
The Bank Of England has reduced the rate of in
terest from ten to eight per cent The Bank of
Prussia has reduced the rate TO Gt per cent Consols
show very slight improvement. Bullion in the
Bank of England was rapidly increasing, and the
demand for money was much reduced. In American
securities no change is reported. No new failures
of Importance in England had occurred. Quotations
for cotton show an Advance and an active business
is reported. BreadstuHs were dull without change
in prices. The Emperor of France had given his
assent to a bill, which had passed the Legislature
prohibiting gambling on the Bourse.
The annexed statement exhibits the amount OF
specie exported from this port last week.
Splcr Fpox Pom IN NEn