The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-12-01
THE DRY GOODS TRADE OF NEW YORK.

The DRY GOODS TRADE Of NEW YORK.
The Business Of 1S65-Causes Of Improbable
transactions and Mercantile Bankruptcy-
An Excess Of supply Both In Imported and
Domestic Fabrics-I review and Mathematics
Of supply and Demand since tho war-saies
Of 1867 Among Leading Firms. .ss
Judging from the amount of shopping done during the
pass three weeks, and by the swarms Of butterflies
Of fashion who promenade up and down, pour In and
out at every fashionable store and haunt hitherto dozy
clerks and statesmen their dreams, IL is obvious,
to the observer that the trade in dry goods,
and especially in expensive and imported fabrics.
was never brisker and more active than At present
Nearly every ono Of the larger Wholesale houses
seems 10 have been suddenly converted into
vast six or seven story beehive, in which the
busy bees Of business fit and FRO and here and there
extracting from regiments Of retailers the coveted honey
OF greenbcks to be duly deposited in cellswhich, IN
carrying out the simie, may be represented by The
Golfers OF the empoyer-and banked at the propretors
leisure; while New York, itself vast commercial bee
hive, has suddenly waxed busy and busting and
general air OF trade except in the clothing business,
pervades the face OF everybody and modulates the
ensemble OF everything metropolitan. The hotels Of
tho city have been, for the past week, crammed
from nethermost story TO attic with representatives
Of the retail trade from the country districts and hotel
clerks who, month SINCE were sleek with Partisan
bows and graees the bare mention OF guest now an
swer CURLY, oAli FULL" or steadily al the uadi
tona fly the ceiling should the traveller urgently
suggest possible need OF accommodations for the
night The Thermometer Of pncee, especially In do
nestle fabrics, still maintains itself Al the point OF
principally owing to an excess Of production dur
ing the past or three years. since the close Of
tNo oS 4 ha ndu NJ ha
country having been liberated by the cessation Of do.
mand for military goods and directed to the manufac-
Of other fabrics TO glut the NAV OF tho market
and render that indefinite something upon which trade
depends the market) OF exceedingly capricous palate
and disposed 70 mascate nothing unless the thing TO be
mastcated be exactly 10 It's liking and there every
probability that the mercury will like Falstan manifest
wonderful facility for sinking for months yet.
Notwithstanding the advent Of wintry weather and the
consequent demand for winter goods Of all sorts. The
truth is, that in imported goods the supply is
greater than be absorbed though Fashion bedeck
herself with Injuries Of dress even tho point and
climax Of discomfort.
The importaons Of the past year have exceeded the
demand for imported goods by At least twelve per cent;
and, perhaps twenty per cent Of would not be
too large estimate. The same rule applies TO the
inportatons OF 1866 and Of 1865. Business men
imported largely, especially during the two latter
years, In anticipation OF revival OF at least
anticipation was never realized, partially for
the reason that there was no money IN the SOUTH and
t0f Of no
ties could be offered by tho Southern people "Ihe
South will not buy and no careful business man would
sell in the Southern market II he could Is common
remark among shrewd business men whom speaking OF
the prospects Of the Southern trade; and the remark s
the political OF the country rendered Southern
securities unreabe AT the close OF the war recupera
on al me Of ~ was ouy work
Of couple Of years. and upon this theory large impor
tatons made IN 1865 and the latter part OF 1866
importatons exceeding in amount by twenty or twen
five per cent those OF previous years Tho same theory
in some degree Influenced European manufacture and,
. large excess Of goods intended for the American
market having been produced European manufacturers
found themselves ~ the beginning OF the year 1867
compelled 10 resort the slender" system by way Of
inducing the market to absorb tho twenty per cent OF
in production which had been left on their hands
by the failure Of the American market The conse-
markets have been gutted with goods by .
resort to the "tender" system, and European
goods a price in currency more than equal to tho
cost Of in gold Hence the great reduction
since The close the war; and hence, too, the antcpa
ton the part Of importers Of sti greater reduc-
market being NOT than twenty per premium
OF the demand. Hence, too, the fact that, while
greater quantity Of goods has been sold ~ american
number OF months In 1866. wholesalers generally
s.. :ssp ss,s:
stock have sold u discount 70 get rid Of the heavy
stocks on hand and realize in cash. The profits
OF 1865 cannot be estimated exceeding twenty
i've per cent OF the profits Of 1865, and American
fabrics have been freely offered at less than the
OF manufacture and have beon taken sparingy at
that. The reasons are obvious Owing 10 the heavy
tax imposed on manufacture, American producers,
always unable compete prohtably in foreign markets
by reason or the larger wages paid operatives In this
country have been forced out Of the European markets
altogethsr-havins been thus compelled 70 depend on
f~ FIR fha m
Expectation OF domestic fabrics even ~ the present list
OF prices, would be almost absolutely impossible in the
and when this Is added the further fact that England
France and Germany are overburbcned with homo
production, the impossibihty assumes air Of
inter- absolu teness Experts estimate tho aggregate
production Of American goods in 1885 and 1860 TO have
exceeded oy thirty per cont inc aggregate production OF
was rekoned At thirtythree per cent OF whole demand
for American goods; and 70 balance this loss which is
nearly total there Is to be added to the Northern de-
mand Of ten per cent thereabouts since
1890 Assuming the production OF 1860 as basis Of
calculation and granting that the manufactures Of 1867
have not exceeded the demand OF 1867 owing 70 the
stoppaae OF numerous manufactures throughout the
counry the two sxcesses Of 1895 and 1866 are loft az
data upon which base calculation OF the present
aggregate excess OF domestic goods IN the Market and
II IL may b further assumed that the demand OF 1860
bic caIcalaiios may Be- educed. The following table
exhibits the ratio Of production previous to the to
that Of 1865 OF 1896 assuming the aggregate pro-
ducon Of 1880 tho par Zoo per esn Or basis OF per-
Production ID lsVO Luz
Increase In 1895 lsG0. ACKNOWLEDGEMENTS. 80
Aggregate production OF 1865 as compared with
1860. ............i.oO
And again.
Production OF 1850.
Increase OF 1866 and over 1850. 80
Aggregate OF 1866 IS compared with 1890. ......130
Excess Of supply accumulated In two years, sup
posing the demand In 1866 aud 1896 10 be equal 10
thai IN lscv.. oO
Other things being equal, therefore, the excess VI
supply baud ct present would DO equivalent 70 sixty
per cent Of whole production OF 1900 and supposng
trade 10 been unusually healthy and the demand
70 nave been wise stimulated for the two years
complete cessation Of all production for sx-tenhs OF
the year 1851 would have been sufficient restore
the baancc--in other words, would have afforded
inst time for the excess 20 have been abaofhed.