The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-02-09
The Commercial Prospect

The Commercial Prospect.
The news by the European steamer surpassed
the expectations even of many who had made
their minds up to good news Plenty Of money
seeking investment in London at 81 per cent;
the demand for gold confined to the bank; con-
tinued reductions in the rates of discount on the
Continent; marked improvement in industry
in France and Germany; general hOpefulness
among the merchants of the connsscial GEN.
tres, and a universal feeling of satisfaction with
and reliance in bright future-such are the
leading features of the financial picture which
we gave, from our European files, in yesterdays
paper Years have elapsed since we had a SINH
lar era of buoyancy and prospective activity in
business. Not since the first discovery of gold
in California and Australia has the effect of
that discovery promised to tell more powerfully
upon the business world.
1t may at first sight seem strange PROPOSE
ton, but there is nevertheless reason to believe
that the revulsion of 1857 will prove to have
been a blessing and not curse, a help and not
a hindrance to commerce and national pro-
gress. Coming as it did at time when, as we
can now see only too plainly, certain branches
of business were unduly extended, and certain
enterprises too largely embarked in specula-
tions on credit or fictitious capital, the revulsion
rendered the world the large service Of breaking
down those unfair traders. 1t ruined all those
who were trading on borrowed capital, who
were living on their creditors, who we're in the
habA Of making a livelihood by kiting. enor-
nous usuIy, or other unfair practices. 1t broke
down large number Of firms and corporations
whose ruin was imminent, whom nothing
would have saved, but who, without the revul-
sion, might have fingered on few years longer.
1t brought men squsrely face to face with their
debts, and those who could not bear the scru-
tiny, it pulverized and threw aside.
Whether this was benefit or an injury de-
| ponds on the value of the labors Of dishonest
| persons. If man who don't pay his debts,
who lives beyond his means, who speculstes on
borrowed capital who, by various means be-
euiles men of money TO lend him their funds
and take his worthless paper instead, if such a
man be benefit to a community, then the re-
vuion was very pjurious but If the class of
persons described are burthen and nuisance,
then the revulsion really rendered us a signal
service, for which we ought to be especially
grateful.
For the rest, the revulsion checked business.
We were going ahead very fast indeed in
the United States only, but in Europe also Con-
sumption was increasing at an inordinate rate.
This time last year, for instance, the i'm
ports Of foreign goods at the port of New York
! were over six millions week now, they are
less than half that figure. We mention this as
an instance Of the extravaganza, imitation, and
excessive and feverish activity which this time
last year marked every branch Of trade and in
dustry, not In This country only but throughout
the whole commercial world. This excessive
activity and undue insation received whole
some check from the rcvulsion-a check which
did the country no harm, bat just reduced the
commercial and financial movement within safe
and fitting proportions
Looking forward, the attitude occupied by
the leading commercial nations of the world IL
Of all others the one best calculated to justify
the expectation that so soon as the debris of the
late wrecks have been swept away and conf
dence revives, an era of commercial enterprise
and general speculation will succeed to which
history has seen but few parallels. One Of the
most striking effects Of the late revulsion has
been to draw specie out Of the hands Of indi-
viduals and small country corporations and to
force it into the hands Of the banks and into
other channels, where, though il is Of little use
at present, IL will prove Of the very highest
value presently, in vvifying trade and giving a
new impetus to all useful enterprises. This fea-
ture too, is common TO all the leading countries
of the world. The Bank of England holds twice
as much specie ~ II did few months ago; the
| Bank of France and the New York banks never
held 70 much as they do now. There 1t lies I;
| serving for the present, and for some weeks to
come, the humble purpose of helping the great
| stock imitation which promises to be the feature
| of the spring and summer of 1868; but it will
| be found there still when the sumner elapses,
| and the movement Of the crops and the revival
| Of manufactures, and the general recovery of
| those great enterprises which are the life and
soul of a country call for its help once more
The failed firms of course cannot be expected
TO regard the late revulsion as anything but an
unmitigated disaster; we do not expect adhe-
renee from them TO these views; but they are
calculated TO command the sanction Of ma
jcriy Of Che people at large.