The New York herald., 1869-01-03
TRADE AND FINANCE.

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Commercial Review of the Year 1S3S-Recu-
perafiye Tendencies of Trade-C0mmerce
and rho Currency Qaestion-Tendency to
Advance in Commercial vaiues-Compara.
tive Recovery of the Manufacfurins Inter-
esf-November Specuiations and December
Failures-CominerciaI statistics of the Year.
The month OF December, concluding the year 1885,
like the same month In 1867 has been one OF COM
mercial disaster, having been marked by several
heavy failures In this city, among which may
be mentioned that OF the extensive firm OF Lathrop
Ludlngton a Co. In the single week from Decem
her l3 TO December 90 1857, the number Of failures
in New York city was nineteen, with aggregate liza
bites OF 81 900 000 Of which not than $760000
was covered by the assets against l07 suspensions
OF provincial houses with estimated liabilities OF
slo70000 OF which about fifty per cent was covered
The year 1867 closed with prospect OF commercial
suspensions for January, 1865 which, had not pru-
dental causes interfered to arrest the logical Sc
quence Of the facts, would have eliminated in
general panic. The rationale OF the matter was very
simple and was found in An rapid depreciation
of commercial values occasoned by three operative
causes, viz:-FIrst, the policy OF attempted over
rapid contraction OF the volume Of currency in cir
culation Secondly, the depression of the market
hS an over supply OF manufactured goods,
amounting TO at least twenty-five per cent; and,
thirdly the oppressive profits OF the national bank
ing system, compelling commerce 10 pay virtual
interest OF from hfeen 10 eighteen cents on every
dollar of nearly one-half Of the whole circulating
medium ofthe country. The over supply mentioned
was the natural result OF an excess OF production
In 1865 and 1866 which led to a somewhat
general prostration OF the manufacturing in
ferest in 1867, especially in cotton and woollen
goods, and ended in numerous suspensions,
particularly throughout the New England States.
Heavy firms and old ones, which had weathered
many a crisis, might be instanced by the dozen
having gone down under the pressure and the rule
OF running short time very generally adopted
in order to correct the excess OF production and
give the market time to work itself clear Happily,
however, early in 1868 sudden export demand
sprang up the market speedily relieved by large
expectation and before February had set in the pros
pect for the year had frightened considerably through
the sudden disappearance OF the excess of supply.
The December session OF Congress also arrested the
progress ef contraction, and the halter about the
neck OF business having been slackened little
mercia men breathed more freely and trade began
TO manifest symptoms OF recovery from the effects Of
the asphyxiation which had been pulling at its throat
with sort OF triple rope. The heavy tax OF the
banking system could be carried the triple burden
OF the banking system, rapid contraction and excess
OF supply could not, and, relieved Of the
Notwithstanding the pressure of the former. The
extensive failures OF the past month in this city, with
aggregate liabilities footing up to six millions OF
dollars, have been due TO causes other than those
which prevailed in December 1867 and are not to be
taken as Indicative Of the unhealthy depression
which then pervaded business circles. II is true
that steady depreciation Of commercial values
has marked the transactions of the past
year; but that depreciation has been. never
.,.,x
stoned very little inconvenience, manufacturers
;obbers and retailers having been Afforded time to
work OF stocks on hand at moderate profit ON the
capital invested, which was not the case In 1867,
though the profit scale OF 1854 and 1865 which
were emphatically periods Of money coming among
commercial men, while the year past has been one
Of very moderate gain, particularly in the dry goods
business. The clothing trade, on the other hapd,
has been extremely depressed, having begun the
way Of the southern and Western markets.
These markets, however failed to absorb
last spring, and the consequence was heavy return
OF unsold goods during the summer and fan and an
unexamped depression OF prices s Houses for the
Of sprang suddenly INTO existence on every leading
1DQrolghiare; auction marts were congested with
unsold manufactures, and the regular trade was
compelled 10 adopt competing scale, doing busi-
ness at loss, or suspend manufacture for the sea-
have supplied ID themselves with clothing At rates So
low during the past year at any time since 1880,
an there is no no .resent IRE prospect o. an advance,
worked on These remarks nave no application OF
course 10 the few houses which rank as at the head
OF the trade though even here depression has been
manifest TO some extent albeit their application to
the mass cannot DE disputed and Fultonstreet, one
OF the citys marts Of the clothing trade has barely
managed to keep afoat, while second-rate Broad
way houses nave manifested Tor he
nve months past 9 sort Of Falsianian faclli.
siandstil and the Consequence is that the leading
auction houses in woolen goods are and for the
son have been doing very limited business
Manufacturers Of woolleh have, on the other
hand, produced more goods during the year than
tne usual average, which has been due mostly
TO tact their part in selling the prevailing
European Styles manufacturing In advance OF
importation, and thus to an extent forestaing Inn
ported goods OF the latest style IN the New York
market. The result has been that the sale OF i'm
ported wooens for genilemens ordinary wear has
been exceedingly small and that importers have In
the main found their latest patterns in the market In
America manufactured before heavy invoices OF
foreign fabrics could be exposed for sale. IL ~
that the greater proportion or this manufacture has
been sold as imported; and the Broadway tailor, who
mas lecateu "a mn nnss i, upon sne IMPRESSION ,aat he
the main exercised hts shears upon domestic
fabrics without being in the least DECREE aware
OF It, Then, too the shifting Of STYLES In woollens
has been 80 rapid-pattern having succeeded
pattern p1qui,k succession-that there has been no
time for an accumulation OF excess Of supply in
fashionable fabrics; and though auction houses
have been labooring under great depression re-
CARDS prices they have been burdened the taking
OF greater quantity OF goods passes IN the market
than they could well have covered had the season
been an exceedingly fortunate one. Tne prospect Is.
therefore. that further depressionin In the price scale
ready made goods OF tins class will constitute
feature OF the trade fore the present year; ami
hence continuation OF the auction system which
at present prevails may be anticipated and not only
continuance but an augmentation Of the number
Of houses with huge placards announcing that the
proprietor is selling out at less than cost TO
close stock. Those who are familiar with
the features Of the trade for the past year aware
that the multiplication Of these houses has gone
at rate OF geometrical progression, which rate
n the judgment OF experts ls TO be taken, cannot
but be accelerated by the tendencies with which the
new year opens The depression In the clothing
business is therefore, traceable TO rather anomalous
causes, and by no means indicates an unhealthy
commercial condition, az would be supposed as first
sight and without due analysis.
the dry goods business has been marked by the
sale Of greater volume OF goods than during the
year 1867. with steady depreciation IN the price
scale, which. balancing the two, has somewhat les
ssned the annual receipts. The total dry goods