The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1866-02-18

It 10 IIdIOiy pOSSlOl6 W escape tuS
conclusion that the periodical crisis,
which seems to be a part of our COM
mercial system, is approaching once
more. The balloon has been inflated
until the tension is too severe for the
strength of the fabric. A collapse of
some sort is to come, and the ques-
ton is, whether the superabundan
gas can be let off gradually or not.
An examination into the nature and
causes of these unwholesome vista
tions might reveal some curious
facts, but could establish no new
principles, as each crisis is governed
by laws peculiar to itself. And,
while it might be easily demonstrated
that the one now coming is mainly
chargeable to the radical misrule
under which the country is suffering,
such knowledge would neither delay
its approach nor mitigate the evils to
follow in its train.
The general expectation Of large
demand early in the present season,
has given place to half panic, be-
cause the demand has not yet been
manifested. One extreme is as bad
as the other. In one case, the fact
that large sections West and South
were comparatively bare Of goods,
was the foundation Of the prediction;
and dealers in this city accumulated
large stocks in advance. In. foreign
fabrics, with few exceptions, there
has been no abatement in values,
although universally high prices have
ruled for several months past. Do
mestic goods, affected by variations
in the price of cotton, by reports
from the South of supplies yet to
come from the interior of the Gulf
States, by huctuating in the Euro
pean markets, and finally by changes
in the gold quotations, have receded,
advanced, and receded again. And
although these vibrations in prices of
American manufactures have no ne
cessary relations to values abroad,
they have still created distrust, and
induced buyers to reduce their
orders, and sometimes to postpone
operations entirely. Then succeeds
the other extreme. In dull season,
competition is ever more active, and
rival houses underbid each other for
the little trade that is Offering. It is
not difficult to see how prices decline
in such circumstances.
Another evil is gradually creeping
into fashion. Money is not abundant,
either West or South, and buyers
want credit BY the operation of IN
irresistible law, capital accumulates
in the large cities, and the wholesale
dealer, having superior facilities, can
afford to extend his credits. Produce
is low, and transportation is costly,
and money comes in tardily, and only
after the maturity of bills. Instead
of thirty days, purchasers want sixty
and MI 2ty, and the sound cash sys-
tenn is being undermined. While
the imitation lasts, there is little
danger to'be apprehended, but with
the first symptom of contraction,
trouble begins. The anxiety to sell
overbalances all other considerations.
With large stocks, and dread of
falling market, unusual risks are
taken by dealers. who are proverbially
prudent in times of active demand.
The worst feature in this extension
of credits would seem to be perfectly
obvious. The frequent buyer, who
gets an additional credit Of thirty
days, gets twice as much in debt as
he did under the old system. His
obligations overlap and his ability to
pay is not increased. It is very easy
to state the case in figures. A buys
from B, on an average, five thousand
dollars a week. If his credit is
limited to thirty days, it is plain that
he Will always owe twenty thousand
dollars, but if he gains the privilege
of sixty days credit, he will always be
in debt to his creditor double this
amount. It is this system of clap
ping that is dangerous. When the
crisis arrives, and A goes by the
board, B has to accept his per cent
age of forty thousand dollars instead
of twenty thousand dollars.
The chief end and object of sales
mans life is ''to SELL" If he can sell
at small risk, and secure margin of
profit, SO much the better; but he
sells in any case. It requires con-
siderable pluck to refuse to diminish
stock, when the buyer is at hand and
available. Ali the wholesome COM
mercial maxims go for nothing, when
commodities are abundant and the
demand light, and this is the case in
New Yorl. while we write. But it is
quite probable that little mastery
inactivity" on the part of the larger
centres of supply. would bring about