The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-09-11


merce raised by sectional legislation
went down before the rising tide Of ma
toni feeling Their removal encouraged
business consolidation ON a large scale
! in commerce. the factory industry and
banking. a process already notable in the
case Of railway and telegraph lines The
tendency toward nsolidation OF capital
was greatly stimulated by two other
special influences attributable TO the war.
namely the panic Of 1891 and the internal
revenue taxes. The panic was 81 course
occasioned by the break In the commercial
relations which existed between the North
and the South. The agricultural South
traded in the North and the threats %
secession in the Presidential campaign
81 isso disturbed credit at the North
Southern remittances fell on rapidly
after the election and stopped altogether
early in the next year. When the war
opened Northern morchants had $500 0Oo. =
ono outstanding In the South. the payment
Of which was made a criminal offence
New York firms lost $3.50. nm. 900, the
chief !'Sers being the dry goods merchants
the clothisrs. the boot and shoe dealers
and The jewellers
The financial strain was most severe
on the day when the secession Of South
Carolina became known. Specie payments
were not suspended in New York or gen.
orally throughout the North. but in Phila-
delphia. baltimore. Washington. ST Louis
and IN all the South outside Of New
Orleans suspensions occurred. II was
avoided in the North through the oppor-
tune heavy grain expectations 70 Europe
~ which mention has been made in an
earlier paragraph. The crisis though
short Was severe. probably u. OOO failures
taking place IN 1891 In the first quarter
II the NEXT year go firms went under.
but with tn" appearance II greenhackS
IN April. 1882 the number % insolvsnts
suddenly diminished and was aGtonish-
inglv small during the rest - the war
The houses which weathered the panic
were for the m"st part substantial CON
Germs These were nov encouraged To- unite
N order n tighten the burden impose
by the new war taxation Most industrial
prNducts wer" subject - tax on sales.
placed finally at 9 per cent adj vaiorem
which Dor" heavily On manufacturers
an most products represented more than
one process Z manufacture
To sslr T.S cotton m-snta -, Of 20 cent?. a
spin this into yarn. upon selling his nnishrd
product paid taN Of ala cents q pound. the
Ueaver selling his product. paid ala re- cen
the dyer another p~r cent . couTse OF procedure
'ha natu rally proved hurdensome. II Nas the
Sme In the manufacture Of STRAIN engiass and
locomotives The manufacture Wi,h little
rAp'Al. who could ATord only small establish
nent. as discriintnAted against In favor Of the
rcH man ~ no cotton manufacture could afford
not only To spin. butAiSo 70 weave. ne ped
AN Nhs could hays his own dye ~otss NJ es~A ped
smother tar such man. After srlarging Ms
slant Id under~sil hts poor uetghbor ION
c~ltfNunn In manufacturing. therefore. came 20
h~ no r4lr. for The fno'~ complete and rom
pf'henSiy- the plan, the lees the mN
In Consequence u this tendency toward
there were 2OOO fewer
establishments IN 1854 than IN issn.
although the volume ~ business increased
immensely. As may he inferred from the
annual exchanges % the New York Clefr-
ing House. which rose from 81 ON. ONo GDn
IN t2e 0no. Oo0 6sO IN the course Of the war