The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1871-11-24
Losses OF the Dry Goods Trade at
Chicago.
From the New York Bulletin.

Making liberal allowances for the pos
sible losses that some of our iobbing
houses may sustain through the small
retailers, we think that it may be safely
estimated that 81 100000 will pay all
the actual losses sustained by our dry
goods merchants, and this estimate is
sustained by our most intelligent mer-
chants. That this is far below what
dealers expected may be inferred from
the fact that on the day after the fire
one of our largest jobbing firms esti-
mated their losses at about 81 100000.
reckoning among the creditors with
whom theywoul d have to make libeI al
compromises several houses who have
since announced their ability to meet
their liabilities in full and promptly at
maturity. The favorable settlements
have had the effect of restoring conf
dence among merchants and even
those most given to croaking fail to see
how the disaster is likely to bring panic
upon the dry goods interest through
their direct losses. The clothing trade
was largely represented in Chicago, but
out of the eight or ten large houses
there not one, we believe, has asked
for an extension over any great length
of time. The result shows the Chicago
dry goods merchants to have been more
solid, finan cially, than they have been
supposed to be by merchants generally ;
although the fact that most of them
purchased their goods on very short
time, always made them favorite custo-
encountered real estate are pinched the
most by their losses but even these
are likely to be able to weather the
storm without sacrificing their property
at its present deprecated value by the
aid of the liberal extensions which their
creditors have readily accepted.
The Chicago disaster has remarkably
demonstrated the soundness of the
present condition of the mercantile in
terest, and its effects rather warrant a
prudent confidence than justify con-
dition of credits among discounters in
Dictated by rates of interest ranging
from II to Is per cent. for the highest
grades Of commercial paper. Those Of
the banks who thus turn to their profit
the temporary misfortunes of traders
are cent wise and dollar foolish as, by
EN- barrassing the merchants, they may
lOst Ilutll 10 vi lilS III pow vi phNii
discount paper than they gain upon
their exorbitant interet.
The New York Economist of the 4th
instant contains the following in its ar
ticle on the dry goods market, abouc
the manner in which Chicago merchants
are meeting their obligations in New
York:
"The adjustment of Indebtedness by
the leading Chicago houses shows a
much more satisfactory result than was
anticipated, or in fact could be expect
ed by the most knowing, while the will
lingness on the part of our merchants
to accept any offering gives full assur-
ance of the deep sympathy felt for
them in their misfortune.
"To give anything like an accurate
estimate of the amount due to New
York would be impossible as too many
interests are affected, yet we feel as
sured that the prompt and efficient
manner in which the larger portion of
those indebted to the dry goods trade
have responded to their claims, sets at
rest all doubts concerning the safety of
a majority of liabilities, and reduces the
net loss to very small figure compared
with estimates at the date Of the fire.
Four of the principal firms in dry
goods. with liabilities amounting to
about $3,000,000, have compromised at
about an average Of sixty per cent,
giving clear loss of 81 100000 distrib-
uted among large number of creditors,
comprising every branch of the COM
mission and dry goods jobbing trade,
and since to one house alone is due the
sum of over 100000 by one party, set
tied at fifty per cent, the remainder
distributed among some $50 houses,
shows but small net loss to the gen
eral trade.
"The wooden and clothing trades are
in much better condition than the
dry goods, and all the prominent deal
ers pay 100 cents in full at maturity,
with but one exception, as far as we
have learned.
Had the disaster occurred either a
month earlier before August purchases
had been liquidated, or a month later,
when spring purchases would have been
fairly under way, there is no comput.
ing what the result might have been,
but all are agreeably disappointed at
the showing, and find much consolation
in the fact that it is no worse, though
there are many small dealers, whose in.
surance being effected in Chicago com
panies, will be able to pay but the name
of percentage"
puororpA haUa ron, rim cid q