The New York herald., 1874-08-31
An Examination Of the Situation with Respect
to the Crops at Home and Abroad.
Cheap Food Not a Source
of Danger.
The Dry Goods Trade and the Con-
ditions Affecting Money.
DULNESS IN STOCKS.
WALL STREET, I
SUNDAY. August 20. 1874

the inference that because Providence has
this year blessed the earth with bountul haryests
allke IN europe as here we are on the eve OF uni.
versal bankruptcy. This will recall to the mind of
many oil our readers the false advice so persist
emily given the South at one time to decrease the
area OF cotton planting so as to control the price
OF the staple In the market. Notwithstanding the
utter unsoundness of such advice Its complete
negation of all established economic principles, so
strongly was 1t argued that, even in fear Of its
adoption, although 1t does not seem to have ever
been seriously entertained, cotton planting else
where than in the Southern States received an i'm
petus which has built up for the South rivalry 1t
never before had. 1t Is o similar argument that
our abundant crops this year are to prove our de-
structlon, these reckless commentators who so
argue seeming to lose sight Of the fact tnat
CONSUMPTION KEEPS PACE WITH PRODUCTION.
A few years ago and lew men OF the working
classes wore white Shirts the fruitful yield of
Georgia and South Carolina, fashioned into textile
form In the mills OF Manchester and New England
finds Its presentment in millions Of Immaculate
fronts worn by the toiing masses not alone on
gala days. but as q regular part of their dress. II
the abundant yield OF this year should result in re-
ducing the price of bread we may be certain that
the hungry masses OF England and the Continent
will but eat the more. TO our own people, earning
high wages and accustomed to plentiful surround
1ngs, this increase in the supply OF cereals Will
probably produce no change IN their diet, but
when we take the poorly paid, INDECENT workers
OF England ana the Continent we can estimate
how slight reduction in the price OF loaf OF
bread may determine their preference for that as
food before other articles, the price of which is
still maintained, or how the cheapened dish of
homtny ut Is said to have been recently intro
duced in Europe) may console BY increased bulk
for the absence OF pork. 1t will thus be that
THIS MATTER OF LARGE HARvEsrs
carries with 1t its own regulator TO maintain the
value Of that harvest, and how thoroughly false Is
the assumption that the yield Is so much in excess
OF human needs as to involve loss to the producer.
This will not be so If the cost of transportation be
not excessive. But we must have cheap freights
both by rail and shipping to market our crops
abroad. Railroad managers and shipowners will
be alike blind to their own interests IL they
fail to recognize these facts Neither should the
farmers indulge In the suicidal policy of holding
back their grain in expectation OF higher prices.
Their real interest is to feed the market freely
from the start Consumption will grow with
cheap prices, and the market toward the
close will then have chance of solid
recovery, based upon increased de-
mand upon reduced stock. Besides, with all
these figures which are now being exhibited OF
this years great YIELD must also be associated the
held over SO low as they are this year; hence the
large crop would seem to have come just in time
to replenish exhausted granaries. Taken in any
view, however, the fact remains that none but
Wall street ''bear'' Of the most pronounced type
could argue
DISASTER FROM A BOUNTIFUL HARVEST,
or anticipate national insolvency simply because
food promises to be plenty. 1t is perhaps the first
time hat the prospect of cheap bread was looked
r1,~r rvrv1
statesmen OF europe, sOlicltOus for peace and the
stimulation OF industrial development, hold a
somewhat different opinion to that OF our Wall
street wiseacres OF bear prOcvities.
THE EVENTS OF THE WEEK
which closed on Saturday night were not OF a
m0mentous character. The money market has
continued to rule with extreme ease, money being
In abundant supply at and per cent on CALL
Prime mercantile paper passes readily at to per
cent, choice names at short date going as low as
per cent. The movement of currency to the West
would appear to have received q temporary check.
judging by the bank statement, which is explained
by the theory that prevailing low prices is retard-
ing the movement of the crops seaward. If this
be 40 it is fatal error, as has been pointed out
above, which Western men would do well to get
rid Of as quickly as possible. Tue true policy for
the Western farmer Is to enter the market as
promptly as possible. Any attempt to hold back
with a view to making better prices in that
way can only result in loss. Even If it were pos
sible for the Western men by holding back to reach
even to the extent of making corner on cereals
their profit would all 60 to railroad men and ship
owners, who would in turn corner them on tr ans
portation facilities and advance freights. The
only sound course is to secure speedily as pos
slble free. open market. great change has
been In progress during the past few years which
has an important bearing in this market. This Is
the removal to large extent OF
THE DRY GOODS JOBBING TRADE
from the Eastern cities, where it was formerly
confined, to the different Western cities, such as
Chicago, Cincinnati, ST. Louis, &c. This 1t Is
claimed has its advantages in bringing the factor
nearer to the retail dealer. and so facilitating
trade as well as collections. The apparent dull
ness In dry goods circles here is in measure at
tributable to this fact, which it Is important to
Keep in mind in any consideration Of this market
The Financial Chronicle thus speaks Of the sub
iect:-
The dry goods trade of New York has undergone
considerable cnange during the past lew years.
stantly competing Tor the small retail trade that
formerly formed an important element in the
see eWer Syer their
now being made TO very large extent In the
larger cities and towns Of the Interior BY making
BILE expense consequent upon semi-annual visit
to New York, and are also enabled to make their
purchases in smaller lots, and to so gauge their
stocks to be lett with only small surplus at the
end Of q season. Indeed thus system OF buying
goods only as they are required Is being practsed
more generally by all classes OF buyers, and
although much the safer plan, 1t seems unsatis-
factory to many OF our merchants who became
accustomed years ago TO the rush OF short season.
during which buyers purchased their supplies ior
q half years trade. Now the season Is prolonged,
and the business Is dragged through several
months. The package trade has been largely
diverted from the jObbers here to the commission
houses, where 1t now properly belongs, so that the
year as our jobbers had anticipated. There are
indications, however, that the aggregate business
Of this market will be about up TO expectations.
Concerning the condition OF the dry goods
market the same paper says:-"The jobbing trade
has improved considerably during the last week.
and there is q fair aggregate distribution to the