Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1873-11-07
OF THE DRY GOODS
-.---.-.... TRADE.

CONDITION OF THE DRY GOODS
From the New York Bulletin, Nov. 4.
From the standpoint of short sixty
days ago, the dry goods trade gave
promise of a season of prosperity with
out parallel in its history. The boun-
teOus crops Of the West and South af-
forded an ample guarantee to the mer-
chants Of those sections for the pur-
chase and distribution of an unusually
liberal amount of merchandise, while
the industrial interests Of the Eastern
and Middle States were thenin the full
tide of success, affording ample en-
ployment to thousands of well-paid op-
eratives and artizans. So the trade
opened auspiciOusly, and during the
month of August an immense amount
of goods was forwarded from this city
to all parts of the interior. But IA
tally seems to have Overtaken the fall
trade of late years. Following each
other came at intervals the
Chicago and Boston fires, and
the epizootic, which severally had
most depressing effect upon
business; and now another season of
extreme depression, aggravated by pam
ic, is upon US. The former calamities,
in a measure taught lesson Of pru-
dence to our merchants, checking spec
ulation entirely, and the manner In
which business has been pursued for
the last twelve months has enabled the
trade to stand upnobly as body during
the present crisis. Such suspensions
as have occurred have been exclusively
confined to houses whose business was
widely expanded, and apt to become
Unmanageable in times of. financial dis
tress. In every case it has been dem
onstrated that the assets of the various
suspended firms have been largely in
now needed is simply the restoration of
confidence, in order to set the wheels of
commerce again IN motion.
The trade has been exceedingly dull
for the past month in this city, but
throughout the West and in the larger
interior cities, a fair distribution Of
goods hasjbeen effected, reducing ma
terially even the large supplies laid in
by jobbers in those sections before the
occurrence of the panic. The local and
nearby trade, which depends upon this
market for goods, has shown a great
falling off. owing to the depression Of
the retail branches, caused by the non
employment or only partial employ
ment of so many operatives IN all d.
rections, who viii be obliged to econo-
nize for some time to come.
Values OF domestic cotton goods have
exhibited material shrinkage within
the last ten days, and both cotton and
wooden fabrics are now cheaper than
they have been for years-conditiOns
which are favorable to an increased
consumption when trade revives. Traf-
fic in imported fabrics is almost at a
standstill. and current transactions are
mainly effected through the medium Of
the auction rooms, at prices which are
anything but profitable to the owners,
many Of whom are manufacturers or
consignors abroad.
There are some points IN connection
with the present method of carrying on
business which at times ike these,
merit the consideration of merchants,
with view to remedying defects.
Throughout the jobbing trade, rents,
salaries, travelling expenses, etc, are
altogether too eXtravagant, compared
with the almost nominal profits
amounting to a mere cOmmission-de-
rived from the bulk of goods sold.
These extraordinary expenses render
the city jobber unable to cope with
his competitors in the country, whose
expenses are less, and who can sell
their goods equally low at a better
profit, besides having the advantage of
exercising a constant supervision of
the local trade which they supply, and
making their collections more easily.
The system of paying commissions to
statesmen in Lieu of salaries is faulty and
bad for obvious reasons, and Inimical
to the prosecution of safe
business. The impolicy of cutting
prices upon certain grades of goods IS
unwise, and tends to weaken confidence
in the minds of buyers. most of whom
are well aware of the object with which
quotations below marketratesa are made.
Credits are too loosely given IN many
instances, and for too long a time In
others. Why should jobber imperil
capital by giving four months lineup
on goods which he himself buys ON a
credit or 80 or so days? The habit of
delivering goods ION memorandum by
the commission merchants should be
discouraged by manufacturers, other
wise production cannot be gagged by
the consumptive demand. Other abus-
es have crept into the trade, but a
glance at the above will suffice for the
present.
The prospective outlook, although
not Invested of anxiety-perhaps of
danger-is not discouraging. The
financial condition of the trade has
been subjected to a strain which shows
its inherent strength; the material
wealth of the country is undiminished,
and as people must be clothed, even if
more economically than usual, an early
revival Of the dry goods trade may rea-
sOnably be anticipated, on moderate
scale, and in the meantime let mer-
chants have confidence in each other,
and the banks in the merchants, and
all will come out right again IN the
end.
SOME men carry their regard for the