The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1860-01-04

idea prevailed that the jobbers and retailers
had been too long at the mercy OF the
importers, and they resolved to emancipase
themselves, with what success their ledgcrs
must show plainly enough Still, Notwithstanding
the losses Of the past year (Which have fallen most
heavily on the importers of fancy goods, especially
silks) from all that we can learn the prospect is
fair for heavy import of dry goods during the
early months of the current year. Importers argue
that both the West and the South able to buy and
that the demand next spring viii consume all the
goods that can be imported, as well as the large
stock now wntering over. From obvious reasons,
it is likely that in many instances this calcu
iaton will prove erroneous, and that, should
the spring mportations of 1850 prove as large is
anticipated, the foreign dry goods trade will be un
profitable, and heavy losses will again by realized
by importers.
" is agreeable TO notice that while the trade in
foreign dry goods has become Improbable, the
domestic goods business has paid handsome profits
throughout the year. Never since the first fac
tory was established have our spinners done
SO well as in 1859. Almost every article
Of their manufacture has commanded ready
market at handsome prices. This has been due
in some measure to the increased demand
for export to India, South America and China,
but more directly to the successful competi-
ton Of our spinners with foreigners in the home
market The fact is conclusive refutation Of the
obsolete protectionst theories which are still urged
in certain quarters At the present time, every
mill in the manufacturing section has orders enough
to keep it busy till spring.
The import Of foreign merchandise, though large,
IN ho1n $hokn &c Aa ia - Z
doubtful whether merchants made much money
by their imports Of groceries and other foreign
produce last year. There has been a great
deal Of disappointment in many branches of trade.
Teas, for instance. Of which the import has been
large, we're expected to advance considerably in
consequence of the new war with China. They
have not done so, thus far; and though they are
firmly held, and the stock is not excessive, they
are not paying any substantial profit to importers
Heavy losses we're realized during the summer
months en- importations Of sugar. Most descrip-
tons sold here for less than the cost Of importation
Within the past two or three months an advance
has been realized, and importers have done better;
but it is doubtful whether, on the whole years
business, the account shows any profit. Coffee,
though high, 90 an average, in this market, has
paid no profit to the importers, in conse-
quence of the high prices which have ruled at the
places Of production. Very few cargoes Of this
years importation have paid cost Hides paid well
for short period at the beginning of the year.
The price soon declined, however, and for some
time past they have been selling below the cost Of
importation We merely allude to these articles in
illustration of the above statement that the i'm.
ports of general merchandise this year have not,
AL cd fair 70 tho iuouo RIO
There will be found very few exceptions to the
rule; and as there has been no reduction in the
penses Of living the fact is suggestive, and should
prompt caution in dealings this year.
The export movement Of 1859 compares very
fAvorably with that Of previous years-the total
aggregate being about seventeen millions in ex-
cess Of 1885, and twenty millions in excess Of 1857
It must be observed however, that the excess il in
specie, of which We exported in 1859 nearly thirty
three millions more than in 1856, and nearly TWEEN
ty-six millions more than in 1857. The export OF
specie during the year 1858, was unusually light
in consequence of the very moderate imports Of
foreign goods that year hence there was large
surplus remaining in the country on LIST January,
1869, being the difference between the product OF
the mines and the export-say $40 100000 at this
point During the year 1882 we sent abroad al
that we received from California nearly $40 600 000
the surplus remaining over from 1853, ana about
$40 100000 of our previous stock besides. The
country is thus, 80 far specie is concerned some
$40 OOO 900 poorer than it was on list January 1885,
It is hardly necessary to remark that for all pract
cal purposes there no article of domestic produce
with which the American people can dispense 80
easily as specie; that practically, it is far less
useful and less beneficial than cotton, breadstu
other agricultural produce; and that according to
sound economical principles, its export is really
as advantageous as the export Of the other staples
which our country produces. But, on the other
hand it must always be borne in mind that the
great public is not composed of scientific econo-
mists and insnciers, and that public prejudices
must be studied as closely as the fundamental laws
of trade. Public prejudice in this country considers
banks unsafe when they cease to hold certain pro
portion of specie to their liabilities; and as no bank
ever holds specie enough to redeem all its liabilities
in coin-though It engages so to do whatsoever re-
quired-it becomes matter of the first
importance to guard against any pspular
impulse which might lead to general
demand for specie redemption by the
banks. Such an impulses we know from ex-
perience-would result from decline in the bank
reserve of specie below the point to which the pub
Lie mind is accustomed. It might be unreasonable
No practical injury would fow from the entire de-
pletion of the bank Golfers, If only the public mind
could be kept easy and panic be prevented. But
a. experience teaches that this cannot be expected
that on the contrary, the moment the bank reserve
fell below q certain point, every creditor Of the
banks would demand coin for his deposits; and
that the result Of such run would inevitably be
general bank suspension, and sweeping and ruin
GUS commercial revulsion; 1t becomes Of the high
est consequence to guard the bank reserve from a
general drain, and to keep it, at all hazards, at
point which the public shall agree to consider safe
according to the popular notion. Hence it is that
the export Of specie, which in community exc!u-
sively composed Inexperienced dnanciers would be
increased by every possible means becomes, when
r,ushed bevond a certain limit, decided evil in