The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1859-01-13
COMMERCIAL DISASTERS OF 1858.

West-Number OF Failures in Each state
Great Decrease In the Amount OF Losses-
Prospects Of Business for the Coming Year
Views and statstics OF u Mercantile Agen
3l4 AND 316 BROADWAY New York, JAM, 1859. !
| TO OUR SUBSCRIBERS
In our last annual circular discussed somewhat full,
the causes Of the commercial revusion from which VI
had then just emerged and seems 10 proper that
should con6ne ourselves TO its effects exhibited
ferent sections Of the country We have 70 this end
corresponded extensively assisted by branch and
sociae oaces. The results arrived at must, from tn
nature OF this circular be given In BRIEF The follown
digeet, prepared from mass OF information, we nov
offer -
Of failures compared with 1857 OF nearly 40 per
but taking New York city OUT the proportionate reduction
much less Our advces , from different parts Of the
ed revival Of business Is still moving forward and
basis than heretofore. There u.s. however, much
indebtedness yet standing especially In the large interior
Cities and much too that will not be collected without
ercon Crops, whole, last gave about average
hough the depredatons of the y for years past
have in of the western parts an almost en-
ire cessation of planting the great staple wheat From
his cause and the general panic the -four manufacturing
price, but hoped that ere long the wheat growing
sections will regain their old eminence both as re.
ne portion Of this great State do not equally apply to
Tiers, and II is difficult to draw general conclusions
Upon the whole, although the panic was severely felt,
here is nothing 10 cause dependency.
PENNSYLVANIA exhibits decrease OF nearly thirty two
per cent In failures as compared with 1857 She has suf
cred severely especially in the coal and iron regions and
prospects In those branches of trade still gloomy.
The crops too, were SMALL and although money Is
plentiful Of late the indications are that business
ONO exhibits decrease in failures of eighteen and one.
half per cent Real estate Except in Cincinnati and per-
haps one or two other ctes is still depressed being low
Ia price than for many years past Money still com
mands high rates of interest," but the farmers bad last
escaped lightly, as compared with what was expected
when the panic commenced and her prospects for next
INDANA-Falures have decreased nearly twenty seven
per cent but as the number in last years return was
high, cannot draw favorable deduction at first
sight would appear jushable. The panic fell with heavy
weight following so closely it did the short crop OF
1857 the wheat and corn crops Of last also yielding
not over half average and forty days continued wet
weather preventing much of that from being gather
ed. Fewer goods being sold in proportion to the
for large number Of failures from this State merchants
buy prudenty, but the trade will be light.
McHIGAN-Failures in 1858 nearly equal to those of
1857 and the State but slowly from her prostra
lion. The staple (whea was not over twothrds of
average CROP but the wool clip was good and helped the
deficiency The lumber trade Of Northern Michigan is as
BEFORE depressed Hard times still continue The
general indebtedness however has been considerably
duced, and we look for fewer failures hereafter.
ILLINOIS exhibits increase Of twenty per cent, but
this would be unfair indication taken in ITSELF The
effects Of the panic were not 80 nstananeousy felt as in
other Western States, and, a consequence the
failures 1867 Outside Of Chicago proportionaey
small The increase In 1858 altogether In the rural
portions Of the State thus bearing out this view Lsay
Wild speculation and trading had been INDUCED n)
this State has escaped wethe merchants alone af
fected and even them II has not fallen disastrous
y upon those in other States. The receipts of
corn and feA below an average last but those
in Condition. and WITH the lesson Of the psuo TO ssrvs
as check, seems to have promising times ahead.
Iowa shows decrease of seventeen per cent Her fail
ues in 1857 were large II is true but from the utter pros
traon she had undergone, looked for ac
counts last year. Probably no State bad
diton for the revulsion when came upon her. comb
nation circumstances seemed threaten utter RUM
everybody in debt banks of ISSUE no circu
ss but Sano Tss wn ws
but in the Des Mones valley there good supply
Of pork which afforded some relief The recent organza
ton of State bank, with ten branches and capital of
$500 900, will work relief though the capital too
limited for the general good Time must elapse before
healthy business can be done.
WISCONSIN shows increase Of twenty three per cent
which with her large proportion Of failures in proves
thus fur will yet be forced into bankruptcy. Crops last
year fair, but the lumber business much de-
Of recent legislation, prosperity viii agan ret but
time must eapse before this can be realized.
srssion Of its chief Of wealth speculation had
riot, and when the panic broke out sudden collapse
real estate indebtedness the greater part Of which has
been paid by foreclosure of mortgages and transfers of
property Severe stringency in money matters is still
felt taxes remain unpaid to large extent and large is
sues Of bonds have been made for railroad purposes all Of
which will press heavily.
New ENGLAND The number OF failures in 1858 as COM
pared with 1857 shows decrease Of thirty per cent
and many Of these from supernduced by the
panic and we look at the amounts Of the suspended
indebtedness OF the two years. We find that the reduction
is large as TO be almost surprising As general rule
although the business for the year has reached fair
average yet what has been done Of healthy charac
ter Most Of the large cotton and wooen manufacturing
establishments when the year came in, either
ming short time or had portion of their machinery
lying idle this cut down production and assisted them to
make better terms The boot and shoe and Yankee notion
manufacturers also restricted the amount Of their
features. A very considerable number of operatives
thus thrown out of employ, and obliged
sort 10 agricultural pursuits for subsistence. Population
Of the large manufacturing towns decreased and
Of course the amount Of trade in such places has fallen
Off We observe that the demands of trade have
started the wooen and cotton mills, and that there is
promise Of at least an average activity among the lesser
manufacturers. The gradually returning prosperity of
the country will be felt in New England in giving them
market for their fabrics and wares and there is scarcely
doubt that the coming year will be in which capital
and labor can be employed with safety and fair
souM generally We have not thought il necessary
go Southern States scratim have done with
the West The comparative prosperity prevailing there
the general healthy tone Of business and absence Of
cesive and wild speculation, have rendered 1t, in our
Judgment unnecessary. 1t Is true many of the States
show by table increase in the number Of failures
for 1858, compared with 1867, but there alarming
symptom in this, when borne in mind that the worst
effects OF the panic not felt in places at the
South until after the LIST Of January, 1885, The accounts
from all parts Of the South except portions of Virginia,
uniform in their testimony that trade is In healthy
condition. The crops produced good, prices
neratve, and prospects, generally very encouraging
We have excepted Virginia Our accounts from that State
dscouragng Last years crops fell far short of
EN- average, while for several previous they had
BEEN general thing deficient Money is still scarce
and considerable financial distress prevails The number
of failures las per tabc large increase upon 1857
and although 70 some extent accounted for above, 1t still
bears out the depending tone of our remark.
CANADA WEsrOur table shows increase of sixty-two
per cent This partly explanable by tho fact that the
opening Of branch Offices in Montreal and Toronto has
caused large number OF very small traders be nclud
ed class not embraced in former returns from Canada)
STILL with this allowance, think 1t fair assume that
there has been increase the number Of failures
1857 The effects OF the panic upon the mercantile
munty have been very severe but the raudulen4 and
weak gone, speculation is checked and with o good
wheat crop, reaction would doubt have taken place
II was, however, afaure-tte than that required
for home consumption being raised but small relief
thus Afforded We believe that the worst Ia over al
though for some time only light trade be expected
CANADA EAsT.-0ur table exhibits increase of one
hundred per cent Of failures 1851 The same re-
marks to this increase made In referring to Canada
West, apply with even more appropriateness In this
The effects of tho panic severely felt in this
proynce other places the peone olouv