The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-03-23
The Troubles Of the Merchants Necessity for
Bankrupt Law.

There il every reason to believe, notwith-
standing the plethora of money in the banks,
and the profits realized by spectators on the
Stock Exchange, that the mercantile failures
throughout the country are still quite as hume
rous a. they we're last year. The fact does not
come under public notice because the lists of
failures are no longer published as they used 20
be. and il is every merchants interest rather to
conceal the evidences Of commercial trouble
than to make them known. But every one who
las been engaged in large business viii admit
the truth Of what We say, namely, that mcrcan-
tile failures and mercantile defaults are occur
ring at the present time quite as frequently as
they ever did during the year 1851. The OK
tended paper which was made during the panic,
and is now maturing il not being met; every
one who holds il is obliged to renew at least for
u portion.
One of the causes Of this inability on the part
OF debtors TO fulfil their engagements il also the
foundation Of the prospect Of prosperity which
now opens up before the country at large. Ever
sinae the panic, but little or no trade has been
carried on in any part of the country: persons
who gave their notes in October. and relied on
their collections during the winter months to pay
them, have been entirely disappointed. Very
| few Of the small dealers have made enough dur
ing the winter TO support their families. This
diminution OF trade has been mainly due to
! the cessation Of importatons from abroad, and
to the general curtailment OF household ex-
penses by all classes of society. 1t was 70 plain,
las, fall. that the panic had been aggravated II
/ not wholly caused by individual extravaganza
and great social expenditures, that even those
whom the revulsion did not coere into re-
trenchment Joined readily with those who did
in cutting down the expense. Of their house
holds, and stopping all purchases Of Injuries !;
whence il became necessary that the importers
should largely reduce or stop altogether their
orders for foreign goods, and live this year
upon the profits Of the lsst. OF the extent to
which this retrenchment of trade has been car
ried, one can form an idea from the fact that
our importatisns Of foreign merchandise Sor the
past two months and a half at this port alone
fall short OF those Of the like period last year
ny over thirty millions Of dollars; last week
alone. for instance, we took three millions less
foreign goods than we did during the CORES
ponding week Of the year 1851.
We learn the same story from the fall in the
price Of bills OF exchange on England, which
are now selling at 1904 1914. In other words
the balance Of trade is in our favor. England
il our debtor instead Of our creditor. and il
would pay to import gold from London to New
York. This perhaps shows more forcibly than
anything else could the extent to which our
consumption OF foreign merchandise has been
checked by the psaic, and how able we are, in
ordinary times, 10 subsist wihoul deriving any
uppliee from abroad
The only thing, now, that is necessary in order
To secure the prosperity which can be seen loom.
ing in the future is the passage of q general
Bankrupt law by Congress for banks and other
corporations as well as individuals. Such a
law IL absolutely needed in order to cut swsy