The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-06-02
How We Are Gradually Reaching
Down to Hard Pan.
THE MONEY MARKET.
Gold, Bonds, Government
Securities, Imports.
THE PUBLIC DEBT STATEMENT.
WALL STREET,
MONDAY. June 10 p. M. (

large autumn BUSINESS and tnat an improved leel-
ing in certain departments OF trade Ia already
manifest. We have made an examination OF the
subject with the view ascertaining the basis for
these allegations and to what extent they are true
II there be such recovery as mas been described
1t certainly is not yet recognized by very consid
cradle class whose opinions are entitled to consld
Grafton. 1t is conceded that in one branch OF the
dry goods trade-to wit. the w0ollen market
more life and activity than usual nave been exhib-
tied during the last two weeks. This. however, was
caused by two important auction sales, in which
both the bidding and the prices Afforded satisiac-
ton to the sellers The explanation OF this cond-
ton, as given by one who is familiar with the mar
ket and who Is competent to speak whereof he
knows, ID to the effect that
THE LAKGE WHOLESALE CLOTHIERs
In ordinary seasons commence their purch ases Of
piece goods as early as January, in order to pre-
pare their stock OF ready made clothing for the
autumn trade. This year their purchases were
next to nothing up to the period OF these auction
sales. These, having been advertised all over the
country at time when clothiers could no longer
defer purchasing, resulted In bringing together
buyers from several OF the large cities, and in the
competition and gratifying sales above described
1t Is already intmated, however, that signs are
even now evident showing that the event IS likely
10 prove unsatisfactory TO the general trade, mas
much as the present demand has thus been sup
Piled and business again threatens to relapse into
. condition Of duiness. We trust the supposition
may not prove true for this is the solitary encour
aging incident OF the hour. The healthtul innu-
ences spoken Of extend no 1urther-neitner to real
estate, East or West nor TO manufactures, grain.
produce, iron, or other interests. We seek in vain
for any fresh evidence OF strong undcrtone and
have no reason to change word In the article
which was published in the HERALD OF December
8, 1879 and which is reproduced to show that
tho prognostications then made are true now:-
HISTORY IS EVIDENTLY REPEATING ITSELF.
The panic OF 1857 subsidized with the suspension
OF the banks OF new York on the 18th OF October
of that year. Comparative comfort followed and
was enjoyed, especially by those who had success
fully maintained the struggle up to that time.
M0ney-that is, bank credlts-Decame easy and the
immediate future was radiant with promise. Mer-
new business was done on q sounder basis than
had existed for years. The winter OF 1888
spring
revival OF trade and the disappearance OF
THE LAST vESTIGE
OF the Crisis. AS events proved, however, these
hopes were destined to have little no fruttiOn.
Business firms who had sacrificed everything to
sustain themselves during the panic and had been
successful found themselves In 1858 obliged to sue
cumb to species OF dry rot. Dry rot prevailed
everywhere. 1t advanced &C o rate Of compound
interest that was incalculable. The whole struc-
ture Of trade became Injected with It, The banks
OF New York afforded an Illustration OF the situa-
ton in their gross cearngs for the three years OF
1856, 1857 and 1855. We compile the figures from
the reports OF the New York Clearing House, as
follows. The clearlngs
In 1856 amounted SO 9O6 21a sa
An ssa amounedd ~ s ls
From the foregoing 1t will be seen that the trade
Of this city, represented by the banks, showed
falling OF for the year 1858 OF nearly hall when
compared with 1857. and One-third compared with
1856; and 1t was not until
AFTER THE WAR
commenced and the government began Its immense
mr. dan
imitation OF currency that the clearings again
reached the figures of 1857. similar condition
continued to decline from the suspension OF the
Ohio Life and Trust Company until the suspension
81 ss banks ks 4n the and % nD
followed, and reasons were as plenty as blackber-
ries why prices should at once return to former
figures. But they did not. The speculation ex-
hausteu itself and collapsed.
THE TRADE OF THE COUNTRY
diminished to q degree that prevented the rail-
roads from earning enough to pay dividends ON
their stocks, and, In some cases, they were unable
pay even the ,s On Their bonded debt
panic, prices were as low, and even lower than
during the, panic ITSELF New York Central, for
Michigan southern at 4. Reading at 35h, and
Chicago and ROCK Island at 55H. 1t is also to be
remembered III this connection that the policy OF
railroads. prior to 1867, was not unlike that which
has been enforced during the past few yearS-to
wit, issues Of stock were made to represent real
or supposed surplus. and bonds were issued for
new Construction, extensions, &C., until tnen, as
now, the stocks and debt represented
AS MUCH WATER AS REAL PROPERTY.
Is there no lesson here for the presentY Is not
the condition OF affairs we have described similar
in Its chief aspects to that which exists at this
timer Is the promise or recupcratiOn greater now
than then9 Nay win the trade OF the country,
however sound IT may be. equal for years to come
the amount or volume OF that which has pass
awayp Every prudent man will answer these
questions for himself, and his own experience will
that beset the countryside failures, contrac ton
Of currency decline In trade, suspension OF mills
and workshops and labor unemployed-it is folly
to be drawn into the vortex of speculation, and
hope that In the general madness OF the hour he
will be one Of the lucky few who extrcate them
selves In time to escape the crash OF disaster The
stock market Is undoubtedly tempting. Fortunes
have been made and lost in the recent sharp adj
vance and possibly still others may be made and
lost; but It ia unsafe TO repose confidence IN q
market that depends for its strength on the man.
lpuations OF the hour and not upon inherent
values consistent with the outside situation"
The foregoing now reads almost like history OF
THE PAST FOUR MONTHS.
At the time it was published the outstanding
legal tenders amounted to s369, 100000. They have
since been increased by an issue OF SO, 100000 to
the present amount OF $685., 100000 Both houses
OF Congress, by their votes on the Currency bills,
nave practically sanctioned the Interpretation Of
the Treasury, which fixes the legal amount at
S4Oo,O00,0o0 Capital on call is begging for two
three per cent, and what is the resut2 Is 1t not
what We had q right to expect from q govern
mental policy that departs SO far from honesty as
TO trench closely upon populations We see around
us gut, stagnaton and distrust. Still, Congress
may not DE held entirely responsible for the exist
ing STATE OF anairs For while an honest policy
would nave aided and fastened q restoration OF
mercantile coincidence 1t could not have compen-
stated for the immense losses incident to the aste
and extravaganza OF great people for a period or
ten or twelve years. The
MILLIONS OF CAPITAL,
not 'paper money"-which could not be more com.
pletely wiped out II it had been burned can only
be reproduced from the soil. When so reproduced
all that exceeds the necessities OF consumption Is
SO much regained and added to our wealth. But
are we now engaged in this process OF reproduc.
ton on the same on lower basis than lorInerIyY
Can we depend upon an equally profitable marketY
Has gold changed its measure OF value abroad to
adapt Itself W the visible contraction here,