The Washington union. [volume] (City of Washington [D.C.]) 1857-1859, 1858-05-28
THE PAST, PRESENT, AND FUTURE OF FINANCE
BUSINESS AND TRADE

An
THE PAST, PRESENT, AND FUTURE OF FINANCE,
BUSINESS, AND TRADE
The accumulation Of thirty fve millions of dollars
in the banks of the city Of New York and the large
concentration of specie at all the leading centres Of
commerce. are quite enough to convince the least
thoughtful in matters of finance that present con-
dition is altogether abnormal Ten millions of dol
lars has heretofore been regarded by the banks of
that city as sufficient basis upon which their obi
cations could be promptly fulfilled Nor ia it be-
lieved even now that the crisis of the past year,
which produced suspension Of payments for the
ment has at all shown that the moneyed institutions
of the city of New York were not in perfectly
healthy condition. Suspension occurred under the
pressure of panic which produced temporary
paralysis Of every branch of trade and indus
try Hence we infer that in the city of New
York alone there has been Withdrawn from
the channels of legitimate commerce and bus-
ness, and locked up, wholly useless and inactive
more than twenty millions of dollars, which were
circulating one year ago, in tho various operations
Of labor and industry We have no doubt, indeed,
but that much larger amount than this, in the com
mercal metropolis of the Union is now lying idle,
awaiting the return of confidence and the resump-
ton of the general industry of the country. Such,
too, in less striking degree has been the case in
every other section of the United States. The
crisis Of last year produced general fright the
first effect of which to induce all cautious cap
italists to withdraw their means rapidly possi
be and to hold them in reserve till the solvency and
capacity of business men should be thoroughly test
ed 80 that taking in the entire country, it per-
fecty safe to infer that than one hundred mil
lions Of specie is lying idle in the various forms
of deposites, individual boarding, and loans from
day to day, which is nearly equivalent in effect to
the withdrawal of 80 much money from the ordinary
channels of business.
We thus explain the effect of the crisis and the
present condition of finance and business growing
out of it's widespread operations upon the COM
merce, labor, and productions Of our own country,
to say nothing of it's influence upon individual hab-
its and modes of living. The least observation of
the character of the American mind is sufficient to
show how quickly it receives the admonitions Of
experience and how readily it adapts itself to condi
tons which circumstances impose upon it, The first
effect Of the reverse of 1857 is in the rapid
taiment of personal expenses, the introduction of
more restricted and economical habits of living the
almost complete disconnuance of orders for foreign
goods the cautious examination of the character
of public securities, the depreciation of doubtful
and unproductve estates, and lastly the depreciation
of capital itself stimulant of general indus
try. The latter is unquestionably to be assigned to
the discredit Of large class Of business men, mer
ard ,,,far I
Meanwhile the great agricultural interests Of the
country, though more or less affected by the revul
sion, have been less influenced by it than other de-
partments of labor. The work of consumption Of
what we had on hand, and of producing the ordina-
ry staples, has been going nearly as usual. The
present crop season, we infer, will return the
usual American products, and before the fall shall
have passed the country will have consumed all, or
nearly ALL the foreign goods now on hand. Mean
time capitalists under the runousy low rates Of in
terest prevailing, aud stimulated by the re-
sumption of trade which will be the inevitable re-
suit of large product, and the demand for foreign
goods which it insures will gradually loosen
their hold upon the vast amount of idle means
now subject to their orders, and press it back
into the ordinary channels of trade once more.
It is manifest, by the slghted reflection upon the
character of our people, that for no considerable
time will they permit their means to remain idle and
useless. The country is in healthy condition. The
revulson of the past year was most desirable
warning against extravagant habits and predispo-
stion to invest means in visionary schemes and wild
specuations. 1t came season; it came after years
of high prices and when the industry Of the country
had accumulated almost inexhaustible reserve !;
it in the midst Of successful, meteorological
and wellrewarded agricultural industry it came af
ter the capital accumulated from past labor had been
largely distributed in the construction Of works of
internal Improvement it came when the record of
exports exhibited healthy condition in fact of
foreign trade it after the inexhaustiblc treas
ures of the Pacific coast had been developed and
when that country of marvcls, in spite of com
mercial and manufacturing paralysis, continued to
pour in its precious metals, not only without inter
ruption, but in increased volume.
Those who recur to the events of the suspension
in 1887, and the long prostraton Of industry which
followed it as proper means of interpreting the pres
emit condition Of AFFAIRS and of prophesying the
future, have studied parallels to little effect There
are few points of resemblance between the two
periods
We anticipate, then, general resumption of bust