Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1867-12-17
Mercantile Failures in New York.

The United States Economist and
Dry Goods Reporter states that failures
among wholesale merchants in New
York City continue to be the order Of
the day." During last week several sus-
pensions occurred among firms in the
China trade and in the dry goods i'm.
porting business. The astonishing state
ment is made by the above named jour
nal that the suspensions of the last few
weeks, including those of cotton firms,
aggregate somewhat near $26, 900, 900.
1t is further stated az q rule, the failures
have exhibited a light proportion of
assets to liabilities, and have been to a
large extent among the importing houses
We quote:
THE very heavy importations of the
last two years are, doubtless at the root
of these reverses. 1t has been patent to
the most superficial observers that i'm
mense amounts of goods have been sold
much below the cost of importation; !;
and this having been done through a
succession of seasons, the result could
not be otherwise than disastrous 1t is
a notable feature in connection with the
failures that they have not been among
the young and generally esteemed weak
firms. Those who have fallen have been
houses of long standing, high credit and
reputed health, the class that would be
expected to weather an adverse gale the
longest 1t is difficult to explain this
fact except upon the paradoxical sup
position that the very caution of these
firms have proved their ruin. They
were our steady ConservatiVe' mer-
chants. During the imitation Of
prices, consequent upon the war and
the suspension of specie payments they
we're alarmed at the apparent reckless
tendency of affairs, believed everything
unsound and tending to rottenness, and
therefore kept aloof from business as
much as possible, leaving the trade to be
done by these who cared less for conse-
duences. They thus lost four years
chances of making large profits upon
advancing prices, when they began to
awake to the fact that those who had
done the business which they had de-
clined had realized handsome profits
Discovering their mistake, they then
entered into extensive operations, sup
posing it to be only necessary to reverse
their past policy in order to correct their
error. Here was their grand mistake.
They began to expand their operations
at a time when the fall in gold, the
pressure of taxation, and natural reac
tion in the markets, we're combining to
turn prices downward; and having been
trading largely upon a falling market,
they have lost their capital. Those who
were apparently reckless during the rise
in prices made profits which enable
them now to Withstand the losses Of the
decline, aud are among the strongest Of
our merchants
4" 1t thus happens that caution, with
out sagacity, defeats itself, snd incurs
consequences as disastrous as reckless
ness. IL has been one Of the great
dangers Of our currency arrangements
that they have produced a condition Of
things to which The ordinary rules Of
business management were inapplicable,
aud in which ripe experience vas Of no
avail, but rather misleading Those who
in addison 70 experience have possessed
a sound theoretical knowledge. enabling
them to unravel the complication and 70
Judge Of the proper course Of action
under any circumstances, OF who. lacking
this. have yet had broad common sense
sagacity, have been enabled TO shape
their course TO the extraordinary state Of