The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-12-15
TRADE AND FINANCE.
The Business of l867-Curious Stats
LEGISLATURES for the Year-The Les
son Of MISREPRESENTATION OF
the Currency and Mercantile
= HankruptcyAIs a Panic
Impending

Nesiray Gibbs hafuase OF this city. within the past
ares wseks-ons Of the heaves. firms tho trade
tAs faurs OF the rm OF shefwin Co OF Union square
sssa and The late failure Of prominent arm
Philadelphia, with liabilities Of $500 0oo upon which
aos moro than twenty. Ave dollar Is likely 10
- realized from the assets Of which arc
likely TO compel business 10 pause, think and
speculate upon the probab Titles OF 1885, and
- canvass consideraey tho various assgnaoie causes
Tor the present approximation 10 crisis For tho past
nix months there has been steady increase or The
sense OF insecurity Ia business eircos and this has
arisen principally from tho fact Ia no six months in
The commercial history ~ AnsrcA has the percenag go
OF heavy AMI pFpmnen, houses which have
suspenied ben In large proportion to tho
whole number OF failures In the commercial
annals Of iss7-un,kc ls5o-57 small houses have
sestnsd 10 enjoy comparative Immunity, while larger
and more extensive have by the score gone
oankrup,cy and thi- been due partially TO the fact
Grover supply, bat materially to tho depreciation
OF commercial through tho gradual bot yet
rapid contraction OF the currency Tbs national bank.
ing system hav.as compelled men. ha 10
2ag from fifteen ,g,eea for the OF every
dollar absorbed 10 trade has also IL Is obvious con-
risused Its share in producing tho present pervadiug
depression In busne>s-as In fact every acute political
economist pred ctei would when the adoption OF
che system was FIRST a;latrd Three operative causes
q business throughout tho country viz
L The depreciation of comma rcia values produced BY
an unwiss and too rapid racton OF the volume OF
currency, incident endcavor on the part o. the
Secretary OF tho Treasury 10 reduce the price OF gold and
'scnSer the resumption OF spece payments feasible
The further deprec,s Of these values Induced BIZ
sxcess OF supply and only counteraced by
. corresponding pisnttuinsss OF currency aud conse-
aauent activity OF trade.
g. The exactnx usury or the national banking system
which compss the people OF tho United States to pay
from fifteen 10 sigheen for the use or oyery
dollar applied to commercial and productive proposes
Neither OF these causes. thoush sufficiently depressing
IN ITSELF would probably been equal TO this bring.
ting about Of the prevailing stagnation In business
though, With the three in comb nation, Il quite i'm.
possible that commercial prosperity should prevail for
many months; and in the present hsaping Of failure
upon failure, the Is reapng only the Legitimate
harvest from the seeds financial guides have sown-
depreciation Of commercial Values suspensions failures
and bankruptcies by the dozen being nothing nor
less than the loeca consequences of ths financial policy
Of the past two troe y.a In 1885, at the close OF
The war values Of every based upon volume
ef currency then In circulation A. certain cost for
the labor Of producing . certain amount OF
productton vn on haad; and since then-wages
not having been materially reduced. while the
value OF that 10 which have been paid has been
enhanced cost Of Manufacture, measured by the
fcld Standard has increased AZ least nty cent In
TACT while tue currency pficS Of isbor what
ss, every step By ~cn that approximates
shs goad standard enhances b. definite per-
eenaSs the cost of and the cost OF pro-
ducton IN 'currency-i price laDor OF remain ng
what It TO- no depreciation OF c,nmcc nj values be
tolerated Without The utmost iniWy 70 trade Wages,
tho other hand csnno be materially reduced unless
= corresponding duciion 10 breadsuYs and edlbies
generally acc.mpanes and OF values In this directi0n
no symptoms OF depression ested. The opera
ave must DO employed NJ the present rate OF WAGES
In The prices or these neos sarlos there are no mai
cat oua TO have prese0ted general bus ness
phrase - meant the cost Of fabrics to the consumer
compared with the OF production ought not 10 have
been maisIai'y rsducsi For purposes o. activity IN
indicated By t~eny pve per cent added 70 tho cost OF
productions and = r m any cause retail price, arc
deprecated below this the business Interests OF
che country suffer, failure suspension ana loss and
panic are among the consequences Now, Il happens
that the policy Of cnutacon has deprecs CONNER
c,a below gold Of MANUFACTURE at the
present ratio Of wages and Tor this reason happens.
Furthermore. that business sands,ili and panic
like Of 1851 In the face thus,
aud with inevitable failure rs rfg business stands and
trcmbLss and ouases upon the threshold OF 1868,
which, II the Inancal policy OF tho country Is
eumed, cannot but no memorable III TIC commercial
history 0. New York a. an era Of pauic afd iaare 20
which that o. les1 hard he compared. The Tact
- the policy OF contraction - tho nanensus knot aoort
che neck OF busine, wcl stru2eie5 even now IA the
sgonies OF stransaatian, sni must aud VII, VITA
rcrseveraucs the Dennis who tugs NJ tho
rope, DO ui,ira'sy tr tsed History Wi hereafter
hereafter alne the policy OF the rr-sent the evil
will have been done. and tnat beyond remedy. The
policy seems have b-en Ia some rspecs rather
experimental than osnd ci-i upon IrDcipe; ana " has
SEEMED 10 b. tue ann OF tneso experiments ~
contraction to FIX tne amount wnich can oa yearly
taken from the pockets OF ~, reope anu
transferred the pockets u bJndnolders "a class,
without nvolvng nb~oiute ruin 10 the business prUs
perry OF the country Commercial values haring been
deprscsted that oly small margin OF prohi--say
ten Per ceni-on the cost OF production was lett co.,
traction should ceased, leaving the price OF labor
value OF production withJu. vicieat disturbance This
adjustment, only q question VI time, HAVING been
elected Further coDrst mgat have been rcsortcd
70 without endaner tue very existence OF business
ieseif either case evsy sup o! appIo.lnal.n 70
OF certain amount Of money TOTO tne pockets
Of bondhoder Qua the latter system based upon sound
principles Of political economy. would certainly havs
bsen prsfsrabs to the i.rner BY tho experiments Of
which values have bssn so deprecated as
20 render almost absolutely unavoidable Great
Britain In lsl5l1 tried The policy Of putting money into
The pockets oil bondiodsrs by wringins Il from tho
=, the pso anu @s 81 and msr
etal and ye wiih This example 10 fal historical
view the Unmed states have been rcpeatns tho ounder
with ADDED emphasis Of repetition. when will pro-
badly Be accompanied with added emphasis OF suit
AZ this ume therefore, review, logical and statssi-
OF busness for cannot but OF
the utmost interest
me number Of failures 10 Now York city for tho
week ending November ~ 1861, eight out OF ag
gregats OF ninssy-av all throughout the United
States aud the cauadaA Inc foiio~ing V the weekly
Hoory Bsfnse,u m,llinery goods--crsditors applied
% force into bankruptcy.
NJ T. Demnrcst, ii1er-Applied Tor bankruptcy.
Harris 3 Day ton. sugar rehners-@uspsnied
Kelly Marvin, msl4ery goo1s-fsisd
y. X shsrwin Co., diy g,ods-1tecS ieved on o.
wnts OF replcvin.
J. Ogden Smith. aes and liduors-In bankruptcy.
French Miller boots aud shots-creaitoss applied
20 force into BANKRUPTCY.
r. H. Reed D sning mill Sold ou, BY sheriff.
For the week esdins December the hooSs o. ,.
Bradsrsot o. exniDt tna fonostng iiss 1T fsGrss
wesiray, . bbes = Hsrdcnstie. tea importers; sas-
wsstrsy Gboes w hafdeastis, lea importsrs; sus-
pended.
Bentley. Burton Co.. wholesale groccrs; suspended
A. Bragg 4 essin, Don1s aud shoes; failed
h N. I0hsa h Co, gems furnishing goods; sus-
oended
Goid-nson, Cohen h Co skirts: failed.
N. 0. Kinney. fancy goods, suspended
NJ. Cuyics, wholesale 0oo,s aud SHOES; applied FOR
Bankruptcy.