New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1869-12-25
TRADE IN NEW-YORK.

no CRISIS AT HAND-How IMPORTERS PROFIT
BY THE DECLINE IN GOLD-ECONOMY IN EX-
PENSES-STILL FURTHER DEPRECIATION OF
RENTS IN THE DRY GOODS DISTRICT.
There has recently prevailed throughout the
community feeling distrust regard to the future Of
trade which has been heightened by the recent failures in
various branches of business The opinion has been that
very hard times ahead. and Of the best firms
have been regarded with suspicion The apparent foun
dalton OF this feeling the large decline which has taken
place IN the premium gold. We think the feeling IS
without good cause. and that fuller knowledge Of the
real condition Of trade at present will tend to dispel It,
crisis in the general trade Of the country rarely ever
when everybody is looking for it, Such general
unsetng OF trade in 1857 comes, almost al
ways at unexpected moment The reason OF this IS
obvious Each merchant in such time the present,
Is looking forward TO disaster, and, conse-
quently, is shaping his own particular bust
ness in such way TO be prepared
for the crisis when shall arrive To be in this state Of
preparation buys sparnGy only such goods he
ready sale for carries light stock wholly or in great
paid for and scutnizes closely the record Of
those who apply for credit The result Of such pru
dent course Is that the disaster which otherwise might
have occurred avered by the very fact of the caution
which been exercised in every branch Of the business
1t times when spirit OF speculation is rife, and
merchants anticipation Of heavy trade lay IN large
stocks running deeply in debt therefor, that financial
walton that the prudent portion of the mercantile COM
munity closely managed business during the past
Fail season. and that to-day Notwithstanding trade mas
been lighter than anticipated, jobbers hold much
lighter stocks than usual at this and are much
less in debt than they often 1t only those who
have managed badly acted imprudently and taken risks
which the times would not admit Of who failing
or are in danger becoming embarrassed Furthermore,
&c an actual that there less failures this Fail
than during the last two or three Fall seasons, both
among retailers, jobbers. and commission dealers The
few failures that occurred have been more noticed
on account of the sensitive condition Of all financial
matters
tits popular falacy that great fall in gold must
necessarily work great loss to all importing firms To
those unfamiliar with trade and the way III which 1t can
be and is conducted would appear that considerable
depreciation in the premium on gold must necessarily
bring ruin, especially importers On the other hand,
we shall show how fall IN the premium dlrecty tehds
increase their profits suppose that Jol 7ItH ~
heavy importer any particular Drauch OF rade ne
has credit Of several months from the manuaetneI IN
Frope of whom he makes his purchases On the arrival
of The goods at this port trade VIII warrant ne pays
the duties and takes the goods to his store II tIaae rs
unfavorabe lie place the goods IN bond ana WITH
draw them only as fast they sold. OF course he
bases his price on the price OF goq ana sels e i
ness Is managed prudenty ana within the pouhus oi
out long before the Importers term OF credit with the
European manufacturer has expired Now suppose tne
suddenly falls He has sold his goods AT higher rate OF
gold than that he has 10 payand makes tne aieleneS
profit Again suppose there Is no sudden fall IN the pre-
nium, but gradual depreciation which can pe oreseen
or before the debt 10 the foreign manufacture
becomes due In such case the importer Dorrows the
indefinite period and, when the premium has fallen 10
meet his views purchases the amount ne mas borrowed
and repays the lender From this will be seen that
fan in the gold premium, instead OF beng loss 10 tne
importer adds directly to his profit H. however ne mas
large stock Of goods which he has paid dutes ana
for which he has renitted and fall IN gold takes place,
he evidently must lose IN Just the proportion 10 me a
for other importers, managing dnefenty VIII nSee
Tohted by the fall and will underse him. On the other
hand gold often proves dlsastfOus 10
for ftbey have managed the business IN the way above
Indicated selling goods at the ruling rate ana Dehg
compelled buy gold 10 pay IOf thelh ~ IIsue
fhr loss Is equal the Increase In the premium 1hOse
who suffer by the decreased premium an. ,o gods
who hold heavy stOcksObOers or Importers WnOsc
are paid for al higher rates-Or VINO nave Dousn' '
In some respects, such time Of uncertainty as the
present has its ADVANTAGES All merGna.Is az tber
PEELED manage their affairs more closely 10 li e
credits bringing business as near as possible 10 e Cas
system. The most noticeable sign on tS ues, Nv er
the strOug feeling which pervades all classes OF ner
chants but more particularly, perhaps thOse
the dry goods trade that the strcest economy
sarV In both business and private expenses rms IS
made very apparent ia the rents when dfy RoOus el
chants are willing 10 pay as compared win those
they paid during and since the war INC ian ma
been steadily going on Tor several months and II Is 1ar
20 saw that depreciation OF $50 10 " per
commanded $4,000 10 $4,000 per annuu cannot nov
be let at 5000 5000 II Is 10 De Pre lt
h. obtained az still further concessions, as the
season or the renting nearly passed and most is
have already made their arrangements a s.oiv Oa
IN the heart OF the dry goods region haVhga
depth OF i75 and width OF % ieet mas y1st peo
rented fer about 5000 per annun IL would readily nave
commanded double that price snort uins agu, anu
NEthin few weeks the owner had refused SsSoS Jot ~
EioheT sfore on Broadway having depth OF w Leet
J aS fet wide cannot be for $4,000 at which price
ID mas been offered The time has come when e1pes l
can be greatly reduced those H,s tna ~ aa
closely 10 their expenses, and adhere rigdy 20 the ~
daye stem of doing business have Dettef proSPeJe
thar heretofore, a. competition promises " O' 0'