The New York herald., 1873-11-03
The Financial Pressure and the
Trade Prospect.

Trade FrOSpccts
There is, undoubtedly, great uneasiness
among the manufacturing, commercial and
business community throughout the country
in consequence Of the financial pressure that
has existed for some weeks and that still
bears heavily upon industry and trade.
There is feeling of apprehension, too, that
the laboring classes, thrown out Of employ
ment, or being only partially employed,
through the suspension or limitation Of work
just as the winter is approaching. will be sub
jected to much suffering. This gloomy state
of feeling has been increased within the last
few days by the trouble that has come upon
some of the largest firms in the country, and
notably upon that Of the Spragues. Now,
while we would not hold out false hope as to
the prospect, and rather advise every one to
put his house in order and be prepared for
the worst, we must say there is nothing in the
actual or prospective condition Of the coun-
try to justify alarm or want Of confidence.
A financial, commercial or business crisis is
frequently and not inaptly spoken Of as
storm, snd we may Iapply this simile 70
the one sweeping over us, which is
breaking down the rotten timber. that
hung upon our vigorous youth and life. Some
live and healthy branches may be damaged by
the fall Of unsound parts, and the storm may
not clear away all that is unsound; but the
good and the bad will be seen more distinctly.
The pruning knife can be applied to what re-
mains, and, in the end, renewed vigor will be
impaired to the growing trade and progress Of
the country. This is usually the case under
similar circumstances among an active, indus
trous and q practical people. The law of
action and reaction operates in the financial and
moral world as well as in the physical. Of course
the duration of crisis and its effects depends
great deal upon the causes and extent of dis
turbance, as well as upon the recuperative
power Of people. Effete and .demoralized
communities may suffer long or even sink
under the disaster, if it be very great and
widespread; but nation in the glow of youth,
full of activity and possessing boundless
resources soon RECEIVERS. Crises occur sue
cessiveiy or periodically among all enterpris-
ing communities, sometimes from one cause
and sometimes from another. They are the
result of the extraordinary progress, develop
ments and commercial spirit Of the age
Being intent on acquiring riches people run
into overtrading or doubtful speculation. The
bubble bursts after awhile and spreads con-
sternaton. The reaction is comparative par
alysis. Then, as recovery follows, another
period of like activity sets in, and SO the cycle
is completed and repeated England, France,
nations have the same history, though modi-
fed, more or less by national peculiarities
and circumstances.
The trouble that weighs upon us now, and
that is affecting the manufacturing and other
industrial interests of the Republic, is the
scarcity of currency. This is the fact as
stated by bankers, manufacturers and business
men generally. Where even the manufacture
ers have not 50 much difficulty in obtaining
money to pay their laborers, the orders of
their customers have been suspended in part
from the stringency of the money market. 1t
does not appear that the country is over
stocked with goods, or that the state of our
crops and trade at home and abroad is not
favorable Really, the country. has seldom
been in better condition as regards the pros
pect of both internal trade and foreign COM
merce. The only trouble seems to be about
the currency-about the means wherewith to
transact business Yet there has been no &C
tual contraction-that is, the government has
not withdrawn any of the circulating medium.
On the contrary, it has rather enlarged it by
an extra issue of greenbacks and through
increasing the fractional currency by the new
silver coinage and issue. The increase of
gold through importation within few
weeks to the amount Of about ten mil
lions has also augmented our resources for
trade. There is, then, more currency than
before the crisis and when everything was
going on swimmingly The question is, there
fore, will this currency be aHoat again as the
crisis passes away? The shrinkage of values
in stocks and other things, first through the
crisis itself and next through the decline Of the
premium on gold, ought not to contract the
currency or withhold 1t from circulation. We
look to the banks chiefly to give free circulation
to the currency, as heretofore. Then indi-
viduals who have boarded it will soon throw it
on the market Let the Wall street and stock
spectators fight it out among themselves, and
let the trading and manufacturing interests
of the country have the relief needed. To
repeat what was said before, we do not think
we are suffering from over manufactured
productions, the demand for our agricultural
product abroad is large, and there has rarely
been finer prospect for trade at home and
abroad. The means-the currency--is only
needed, and Of that there is actually something
more than before the late disturbance. Let
the banks unlock their Golfers and the people
empty their stockings, and all will be well.