The New York herald., 1862-01-01
THE FAILURES OF THE LAST YEAR.
The Northern States, the Southern States
and the British Provinces.
OFFICE OF THE MERCANTILE AGENCY,
Nos S14 AND 3l6 BROADWAY, NEw YoRK.

OFFICE OF THE MERCANTILE AGENCY,
Nos Sn AND 3l6 BROADWAY, NEw YoRB.
To Our suBscRlpRRs:-
The accompanying tabular exhibit embodes facts
fus that to many minds will appear surprising. They
show that the number Of failures the North has not
been great is generally believed, the
assertion made in last annual circular, that
domestic troubles met us at moment when healthy
condition Of trade had been reached.
We find that in the Northern States, in 1867 there
257 failures involving the amount of o0o
against 6935 failures during the past year. with in
debtedness Of $76 632 showing for the past year
Of 67s failures the number 1857 with
diminished liability Of $s7, 1856, $50.
In the Southern States the number OF failures for
entire year Of 1861 67S, With indebtedness Of
s25 Geo. while the partial the year 1851
reveal loss failures with liabilities amounting 70
S2S 57e 267, although the returns from the seeded
States embrace period Of ouy four months, up to
May ], when regular fac ,ltes interrupted.
(See note at the foot Of the tabe TIE unusual
Of failures in this section during these four months
be accounted for mainly the ground that many
intentional, 10 order TO evade Obligations due at the
North. Subsequent State action annulng all Northern
claims the entire cessation Of trade and the
condition Of the South lead regard the entire in
debtedness Of that section swallowed up carrying
the war, involving general mercantile bankruptcy
subsequent paragraph much larger than has gene.
rally been supposed.
The excess exhibited in the amount Of liabilities (re
sung from the financial pressure OF 1851 of the prnci
pal cities Of the North, those OF the political crisis
Of 1861 accounted for by the fact that the larger pr
vate banking importing and commission houses were the
heaviest sufererswhe the increase in the number Of
failures for 1861 with diminished Indebtedness is for
the that the jobbng houses have, in the past
year, been the greatest losers In November 1s6 the
fall trade passed; stocks hand light and the
orders for spring goods n allegiance This also
for the diminished liability and importers and conmis-
sion merchants by the force Of saved
from losses that would otherwise bave proved more
serious.
In response 10 the inquiry Of many Of leading
chants who have called upon for reliable statistical
information, as 10 the mercantile indebtedness Of the
South 10 Northern merchants, we enabled 10 state
that by very close examination Of books confirmed
by other sources Of information there the four
cities Of New York Boston, Philadelphia and Baltimore
about $z11 900 900, divided a. follows
New York. $3.50 800 0Co Baltimore $40 900 900
Philadelphia. 2i,600 600 Boston .... 1900 600
estimates show that New York loses SIS PhIa
dephia, S+ 600 o0o Baltimore, 50 500 600 and Boston,
81 900 ,ooo making total q Indebtedness to the dry
goods trade OF $97 500 000 From this and other
estimate the total liabilities OF the South North.
ern States at near $500 900 Tne above estimates,
safely sirm are moro nearly correct than IN any
other way be determined.
ceved, eliminating in April last with the probable
tnuance Of the unhappy outbreak prompted economy
which was very generally adopted and has been rigid
~ adhered TO that we estimate the actual saving prsc
tsed by families articles not Of absolute necessity
figure which nearly meets the expenses Of the war
thus far With population Of Il 900 600, safely
count 900 600 Of families and estimating the annual
economy Of each family $780, which large under
the circumstances have total saving TO the country
Of $500 10000. The result however, may deveope
itself by the withdrawal Of so large number Of produ.
cess consumers merely, and resting as an expense
on the country, remains to be seen.
The North Is self sustaining, and our Western country
is now reaching more sound condition than it has for
years enjoyed The prospects for the spring trade are
good The great abundance Of the products Of the SOIL
particularly at the West and the immense
amounts Of money and enable the country TO
buy literally and generally on safe basis.
in our previous circulars we have alluded at some
length TO the extended credits which had obtained,
through the influence Of more prosperng times and
petition in business and condemned the practice en-
deavong TO show that the country grew older and the
facilities Of transportation increased shorter credits should
be the mercanter Weare yet more impressed with the
importance Of this step, but while urging its Importance
would condemn the too rigid and sudden change adopted
and advertised extensively which has conveyed the idea
that a strictly cash system prevailed in this city. This
extreme measure has been hurtf and our western mer
chants having received the impression that credit
whatever could be obtained here, have gone TO other
markets and this great city has lost some Of its bcs
customers.
The practice which has Of late years become general
has been heretofore subject Of controversy, and the
custom stands condemned upon grounds Of mercantile
prudence aud safety. Merchants IN failing crcums
enabled by this practice. TO sustain their credit for
time, 10 their great injury, as well as that OF all
sound obbeis WHILE in the end, II Is almost invariably
runous 60 those who resort to as temporary expedi
ent. IL 10 alike damaging TO the importer, commission
merchant aud note buyer Only those who ovcrtrade,
who do business beyond the limit provided by actual
capital need money TO extent that favors this ktng
system Those following legitimate trade have need,
In ordinary times 10 force of the paper they receive and
we pleased 70 know that houses OF this have
already begun this salutary work OF reform.
We have been in the habit Of issuing with New Year
reference book, containing ratings Of mercantile Erms
throughout the United States and Canadas the OF
bankers and Importers The system adopted by use, Of
daily supervision and notification has In ordinary times
rendered this work valuable In these days Of
tile disaster and uncertainty however these ratings lose
the value they a. other times possess, and
liable An even handed justice 10 both buyer and seller
which is our aim al all times exercise, forbids
publishing new volume at present We shall await the
issue now involved and be guided by orcumstancesen
the times In this matter Our records show such strange
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