The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-05-02
FINANCIAL AND COMMERCIAL.
WEDNESDAY, May l-6 p. NJ.

Wi,bin the past few Gays great NUMBER OF
s,cantle failures have oc cured in this city and
= philadelphia. We have seen list OF about
Sorty houses ia this city, comprising some old and
highly respected names, which have suspended
within the past week. These firms mostly IN
the dry goods trade, but not exclusively. Two or
three leading grocers, one prominent hardw're
house and TWO or three houses in the pr~luce
business, are among the number. The greaser por-
ton o. these failures have arisen rom ne repu-
satn by Southern merchants Of their debts
"a Al. North For some months Lssk it has been
almost impossible 20 effect cole ctios a. the South;
and since Mr.. Lincoin's proclaTation, Northern |
creditors have been generally notified by their |
debtors in the rebel States thatehey would not pay
another cen. OF their indebtedness As the South
ewes many milhoE-s 10 New York the failures
which have taken place shus readily explained
and il is made clear that they must be followed by
others. -Four or five msnths ago We stated in
this column that the political movement in
progress would destroy the great mercantile
houses in New York which have grown wealthy
by nade with the Soath; the commencement Of
the iulflment Of that prediction is now before US.
The first victims Of the war the men who have
beer most conspicuous friends OF the South, and
a. partsans Of the doctrines of the JEFF. Davis
school of rebellion.
Or the other hand, at the present time, mer-
chants who have been trading with the West are
hardly in better condition than those who have
been doing business with the South. Most
of the currency of the great Northwestern States
- based on deposits Of the State stocks Of Virgil
MIA Missouri, Tennessee and Kentucky, which
stcsks have within the past few months or weeks
declined over fifty per cent, and would be much
lower but for the fictitious demand created by the
operations Of the bears III Wall street. Tie fail
m these securities has occasioned corresponding
depreciation III Western currency, and, in cOnse-
snence dead lock in exchange on New York
The Western holder of $4,000 in Chicago cur.
rency Representing deposits of Virginias
Nssouris at 70 cents on the doilarl cannot
purchase draft New York for any
thing like $4,000 with his money. He must sub
mat q discount of 10, II OF 10 per cent. And as
there are few branches OF trade which afford
to pay such shave as this, Western. debtors, az
general rule, are holding back in the hope OF some
improy ernent in their exchange market. Many
think that the rcopeniDg of the canals, and the
spring movement Of produce, will help remove the
difficulty and this is doubtless true u some extent.
There is no reason why honest debtors in Illinois
AMI Wisconsin should not send on corn and -four
10 meet their notes here. But we take it
that the cardinal trouble grows out Of the
intrinsic wor;hlessness of the basis of most Of tie
Western currency, and that this tronble is IL
curable. The sooner the West realizes the fact
that the stocks of all slave States nrinsically
worthless, that no interest Will be paid on them
5or some years, if ever again, and that money vii
be saved by sending them to New York and con
veTting them into money even at the present dc.
preciatioD, the quicker will matters in TIA, section
av.1 L'aa Iif1r 1at~
money The West must call in its present debascd
currency issue fresh bank notes based on deposits
OF free State stocks, plant plenty Of corn and
wheat and in year it will be able to pay all is
debts twice over
We have frequently had occasion u observe
that the war il going to revolutionize our trade.
The beginning OF the revolution is upon us. The
old rich houses, which have grown strong by sell.
ing to the South are going down, one after an
other and meanwhile other houses are growing
no in their place. Many New York houses viii
grow rich by furnishing the troops with supplies
during the war; War always creates a large de-
nnand for certain class OF commodities. Those
who produce and those who sell these viii make
money. Next year the West VIII be able
to buy largely of foreign and domestic
merchandise, and careful capitalists will then
INQUIRE for Western, just as OF late years they
have insisted on Southern paper There need be
no fear for the commerce of New York. Ind |
yiduals fail and disappear, bnt their places are
soon filed by younger and more fortunate men;
and the commercial community, despite the dis |
astcrs Of season, increases year by year Ia mum.
bers wealth and power.
The difficulty OF negotiating paper is very great
indeed and bat few names can be passed at any
price. Very choice acceptances 80 at about seven
per cent. On call the supply is Of course uRl
unfinished, and the rates no higher than they were
But little business was done to-day at the Stock
Exchange, and most descriptions were lower.
Tennessees fell off IA the reported secession
Of the State, and virginias IA. Two per CENTS
offered for the loan of Virginias for three Gays.
Central declined, at the morning board, g., Erie
*, Michigan Southern e, Illinois Contra I, TIA
lena Il, Toledo u. On the other hand, govern
ments were firm to-day the coupons of 1881 al
vanced a. and the u per cent Treasury notes ~
The Secretary of the Treasury has called for
the balance Of the loan authorized by the
act Of june lsS0-nearly sl4 100000. he will
receive bids till the Both, unless the amount
be previously taken at par II is ramored
that the banks are about TO make up party
10 take the whole at par. Such patriotism
is highly commeudable, but the policy Of the step
very doubtful. No good ever comes Of violating
the laws of trade. In open market government
sixes are worth S6-no more. II the bank tor
pa.riotisrns sake, give 100 for them, they violate
a law of trade. and weaken themselves uajusjiGa
bly,. All that the government can ask Of mer
chants and bankers is to lend il money at the
market rate. This country is great enough and
rich enough 10 ask no eleemosynary aid from the
bankers OF Wall street; and on the other hand, the
bankers wh in reality render the government
more service by keeping themselves strong enough
10 lend frequently than by straining their
resources and locking up their capital in an
uubusiness ike purchase Of government bonds at