The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-02-26

lecture on this subject Wa delivered yeseerdsy
evening, 81 the Stayvesant Institute by Hon r. A. Couk
ling. Alter review Of the growth OF The country, and
particularly Of New York. the lecturer proceeded TO
discussion Of the causes by which il was produced.
For myself said be- believe that the crash the Leg
Innate and inevitable result Of influences which hsd long
been q work, and which without reversal OF the laws
of economical science, could have had no other con-
clusion That not produced either by panic the
suspension Of specie by the banks, by
kindred cause, concusively proved by the fact that
although the banks have long since resumed, and al
though capital now abundant and the rate Of in
erest lower than has been for years. the prosraon
OF business Is nearly a. great The volume OF
business be as shown by the exchanges at the
Clearing House onetalf less than WAS In the month
Of Augt having fallen TO third the amount for the
week ending on the 2sth Of December last II Is true
that one reason for this falling of in the business OF the
nshxs 'nat the race OF speeuAsors-espec@y those
Unsuitable cormorants the railroad corporations-have
disappeared from the market; and u is devouty 70 be
hoped that 1.-THE places which knew them will know them
no more forever" But cannot be denied that the
ducon in the Of regular and legitimate business
SINCE the month OF August last has been very nearly in
Ascension lately caused in England by the decia-
ration OF the Lonson Times that British commerce
rotten TO the But the fact itself has generally been
regarded as the real Of the revulson which has
there taken place The key TO our reverses Is to be
nothing OF the morals Of the country An investigation OF
the condition Of almost all our financial and in
II Doleved,
that their foundation had become unsubstantia and
niiom. Our foreign tonnage, under the impulse
OF temporary and exceptional causes, such as the
Irish famine, the discovery OF gold IN California and
Australia and the Crimean war, had outgrown the
demand of q regular commerce Besides, . prefer
ence has, Of late been given to steamers sailing
GELS which bids fair revouonze the carrying trade of
the world and to restore to Grea, Britain her commercial
condition OF things not very dissiuar that just
described exists in regard to the railroads. Perhaps
not too much TO say that the railroad mania Of the last
few years. when its history to be written will be
regarded among the finance, akin to Laws
Mississippi scheme and the South Sea bubble. Nothing
but an extraordinary combination OF circumstances could
have Gated In short time and in a comparatively
thiny peopled country Ike the United States railroad
system Of the vast proportions and cost which have been
already described. In this hotbed development, dis
honesty end bad faith have had small share single
instance may suffice to illustrate the manner in which
many roads have latterly been constructed
The American Almanac for the year 1858, under the
N.g York
Length in operation 90 miles
DEBIT funded and floating ACKNOWLEDGEMENTS. 2279 s54
Cost Of construction and 3,495 1852
Expenses Of working in l5o. 22s4s2
which last @m 1t will be perceived is 2; per cent more
than the entire earnings Of the road 1t said that before
dollar Of stock subscribed for this work the bonds
Of the company sold III the LONDON market TO the
amount OF one million two hundred Thousand dollars.
ostenbly for the purpose purchasing the iron t. Lay
the track and that of tue mstagers OF the scheme
whose name for some unre reason was kept ou.
Of view in the organization Of the conpau y-receved
commission OF ten cent OF hunoI eli
and twenty thousand dollars Tor endorsing these bonds
Now that the read has been built II entirely worthless,
worse indeed than nothing since cannot be made TO pay
the running nses and ia TO be presumed the bonds
not much better. Unhappiiy this company but the
representative OF cass Of our railroad corpora
tons vicious system OF credit has laid the OF
this mighty structure of indebtedness and insolvency The
Secretary OF the Treasury IN his last annual report
"In TO circular letter addressed to the various
railroad corporations of the country information hs been
companies amounts 70 SAL 600 900 their indebtedness
SAT- 900. The annual interest upon the latter
$26 600 their annual income was Sts 600 COO He'd
nept investment Of capital ought to be done. NANTES.
that such condition Of things now exists could never
foundation, the railroads of toe coUDr. net worth
one halt their costy May not be said, IL the au
eountrv is rotten 10 the corsS The drect loss OF be-
tween four and FIVE hundred millions Is net BIZ any
means the measure OF evil which has come from
this quarter BY dverting a large amount OF ca
ptal and labor from their accustomed channels,
the construction Of railroads has largely to
dermpe other interests ard thus 10 produce the general
Instability which led TO the revuson What the
dton OF the mercantile interest when overakeL by IL
crisisf think will hardly be disputed that there was
much unsounneSs. SO far this and the other large
cities concerned this condition o. things was due in
great TO the inherent vices Of the system OF bus
which has grown up within the last few yearsas yB
the Characteristic features OF which vast sales
\ enormous EXPENSES, long credits and ext.avs
partaken very largely Of a speculative character
The statistics or life chow that mercantile
business tho mos: precarous Of all the useful employ
ments. General Dearborn, who for twenty years was
Collector Of the Port Of Boston, and who had ample oppor
tunes for observing the vcsetudee OF trade declared
in public address before the Legislature Of Massachu-
sets that snopg every hundred OF the merchsru and
traders Of that city not than three ever acquired
Independence This conclusion not arrived at with
out great dsrust but experienced merchant who
consulted fully admitted ia truth Ia the security Of
camille business likely 10 be Increased b. the systc
which has been describec-ra;her, Is not certain thai
universal bankruptcy will be its resunp
OF thanks given 10 Mr. CoDkiing 81 the clos
OF the lecture.