The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1860-08-20
The Present Commercial Condition OF the
Country.

Tne Present Commercial Condition OF the
Country.
mere u nothing which Americans 80 soon
forget az the lessons Of adversely The rise,
progress and termination Of speculative
mania seem destined to repetition within COM
paratively brief periods Of time. The history OF
the credit system, or of paper money expaa-
sions. by which it is stimulated is the history Of
panics and revulsions. This il called a
young country; yet we have had severa, suc-
cessive aud disastrous revulslons. The drst
followed the close Of the late war, and ex-
tended through 1914, 1915 and 1916. Another
occurred in aS25, aud, again, others in 1887, in
Is47 and ls57-the latter having been the last
SO frequent and regular has their recurrence
happened, that those who watch the progress Of
events and estimate the forces which impel
them forward can, like astronomers regarding
comets, foretell the periods of their return,
when they are farthest removed in taeir
orbits, and when they will again pass
their petroleum. Each generation adds to
the list Of sanguine spectators, who fly
to the credit system with the hope OF realiz-
ing sudden fortunes. The consequence is, that
each succeeding shock becomes greater, be-
+ cause of the greater population and number
of banks supplying paper credits, and adding
to the list of adventures and spectators.
There is always some development, some
casualty, preceding commissions, which, though
charged as the cause, is only the first breach
the first topple in the crazy wall of the credit
system the first explosion, which is soon fol-
lowed by the demolition of the whole fabric.
| Thus, in 1887, the cause assigned was the
fall of the Josephs Again in 1857 il was
Schuyler's frauds and the failure of the Ohio
Life and Trust Company. How do we stand
in 1860 or at the present time, three years after
the panic Of 1857? Let us compare prices theu
and now both in stocks and produce, together
with the condition of the banks then and COW,
and consider the prospects and condition Of
things then aud now.
! The panic OF 1857, which Frustrated the
West, was succeeded by the failure of two sue
cessive crops, while its people were burthened
| with enormous debts. Its trade in New York
was nearly defunct for two years. This year
the West has made large crops, and everybody
says that it is going to give large trade to tho
East. We must bear in mind, however, that q
large portion Of its receipts from this new crop
will be required to pay off farm mortgages and
to liquidate past Indebtedness generally. After
this is done, its surplus for the purchase Of
| goods will not be large.
The statistics of bankruptcy in 1857 show
how much the West and other sections failed
for. The total number of failures in the United
States from the 3Oth December 1856, to 30th
December, 1867, was 1881 The total amount
of liabilities was 1921 100000. The ordinary
failures embraced 3,7O3, with liabilities
amounting to sl92 ,305,5OO. The swindling
firms amounted to 3l7, with liabilities OF
| S4,9s50OO. OF those not classed as dishonest,
but who paid little or nothing. were l,S0l
| firms.
The total amount of failures in the different
sections Of the Union was as follows