The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-01-12
THE COMMERCIAL CRISIS.
Noo~Dooo~oo~o~~oNO~~~
ne Failures in the United States, Great Britain
and tho Continent Of Europe.
The Ruttennea of the Commercial and
Financial Systems Of the Old World.
MRy INTERESTING AND SUGGESTIVE STATISTICS.
&C., 10, &c.
TIE FAILURES IN AMERICA.
OFFICE or TIE MERCANTILE AeEScy,
S1A srd $40 Broadway, New York, jan, 1853


TO OUR sUBsCNTBERs.
NE entrance Of the new year induces us TO present
vsev before ycu gsncng back at the principal
events OF the past year the mercantile world and Of
Sshg few suggestions dictated by the interest which
We feel in your welfare.
ne rlnanoial revueion through which whole osun
~ has just passcd-tac disastrous effects Of which will
be felt for long time 10 come-exceeded, in intensity,
ne apprehensons Of the most timd and cautious in
sar midst stringent money market was looked for
Tbere had been trading, too much competition
m business, too heavy expenses, too long and large
evedjSs and there still quite land speculation in
- West Some failures were Of course expected.
HE tendency 10 overdo, however, you will remember,
had been very much restrained by causes which have
operated every year for the last six years During
Aaa time drouh and failure OF crors both at the South
sud West and three serious financial rcvusons,
entrbuted TO put jobbing merchants on their guard
against excessive trading in whichwe do not believe
hey irdulged TO any serious extent. After the hard
yoays referred great anxiety was felt in regard to the
crops for 1857. kind Providence gave an abundant
haves on the basis of which sound and healthy trade
vas anticipated Our importatons were heavier, IL is
true than they ought TO have been; but our jobbers
stocked up moderately and were hooking for their usual
An trade when the contraction commenced, which was
bnowed by panic, and the crash came, destroying all
demand for goods deprecatng stocks derangng our in
Hrtr exchanges and stopping colectons and the ior-
wardmg Of the crops.
Was there sufficient disease in the body commercial TO
cause such arrest of business and general hquida
sua9 The number Of houses that have resumed Will
pay FULL the large number that have already compro
mked as high sixty to eighty cents the small losses
banks have met with, and the quickness with which
0ey able 70 collect in and place themselves in
strong pceopnot speak Of the value Of the crops
hand and the millions Of specie boarded throughout
~ believing
paper money, overtra1ng, speculation, &c would not
have warranted least after the export demand for spe
sSe ceased more than moderate contraction, which
should have been even then very gradual and dscrmi
Mating, and not ruthless assault upon private credit
tcok place caused by panic, by which mean ter
inspired by tring cause or misapprehension Of
from any ord nary cause We have reason TO snkfu
chAt ths panic In year OF plenty and with smaller
ndebtednees believe from the country than usual
Had occurred at at any time within the last three
four yearsthe year OF drouh and failure or crops, for
se losses would then have been much greater. AZ IL 49,
may reasonably hope that the houses which have been
bankruptcd by this crisis will make better div dends than
made before under sucn dis~strous ciSum-
stances.
cccrs Of four nve Of our strongest banks was the
chief Of the great disasters OF the season They
concerted together and forced rapid and mercess con-
traction upon all our city banks carrying along win tnem
tose Of the whole country. II the banks OF New York
city control the action Of the banks Of the United
States II s TO be regretted that so small number OF
them should be able by combining 10 determine The line
CS pocy 10 be pursued by the whole body. The whole
country s therefore, Interested tha, New York should
have n steady and safe banking system and n
our Iessiature should impose some such restric.
ton as the press generally have r.commepsed, %
, dollar = sp~ce for every three OF liability sc should
have as perfect system probably; Of paper currency,
sn,,d 10 un,silfu hands the system ought not 10 be
blamed for the dficultes which their bad management
has caused action the part of the banks would
have rtveu rfo insolvency ali ,haf class whose condition
warranted such treatment, without pung every one on
Ths tendency 10 excrssve Importation which mas af
tsd All Glasses of mcrchants NAV be largely a.crscd Z,
n "a, ,ha, cttcs ~ have bccn 40 easily
h..a, "a 49,, ,hav haye .gorded sncb ane opeoioos
sr .,t,n1S ena,s,ioys In this regard the times are
nre hoes wbich nreceded is37 There has not been 40
noss % b s,i or The obbsr. 9Th he in
s.vo, =. has beep supn sea As cls.s tbev manifest
,e caa'vn ~ stsns :, h hor.s = rooa hsrs com
-. 49, .aan ena s,Ts,encs ,han ~ a, of Ire rnara
saernan with the judcious the Mercantile Agency
~ ,b,ngs
IL g Considered sase for a merchant doing an ordinary
.hs. n,.sn.s. h,vtng on ol,h, r,or,h. ami seln IN
,hss ~ gry oy even Ave- ,rr,s The aoas ~
n e.r,, ana b,s susnes, we'll attended To- and hi,
goods placed safe bands. he may BE- n.sy' easy 70
sS & ~ ,, % sncb son.ss among oar
subscriber. IN 81 Z. kinds o. ossns trade cysn that most
mind ,he oaso ~ one s1eb boSse leading one. TOO
which, from The commencement Of is business, some
sssra,r, al ,s,,hr . Sew weaLa We think an a siIk
hoa.e which. FOR SEVENTEEN years has not, tii his
cS,s,s aslss a aiscount nor borrowed a dollar
s oSh msa , ne s ps Sss s no
,s.n,, ~. .o.r-sad , noi,.r. y.nJ re conI roer,on
sh.,. We Am, ha, ,hcse IN ,anees are yare bu, h
show hai can be done and what ough, 10 be done more
n,rrnoriv ,hsn i. ne ,i.sy honsss are thoae which
m .asn ee,o ,i ~ an, ~ ,ho,, an
al In easv Zines ,hev are able 4, do this hv usipb All
,ss cradle ,s.v can GO; :, bsnt "a c, as thai ,bev COT
sso,n ,bs ,nor.1r,er ~ snnd ,,snusac,u,er - ~ -
The iobhns merchants embaIras-mon,s arise mostly
ron ne ws ssn On ,ne ps, Ss ~, % o 2
- .d rhe connrv storeheener canno, no prmn, ,shen