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Na 46a, ^^1^^5 ^ 18590 THE iLlABEB, 187
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C O M MEEOI A JU
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INSOLVENCY IN THE UNITED STATES.-^CREDIT...
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, 1857- 1858. ! No. of Total No. of j To...
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stance—:are. prepared and ready for cons...
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GENERAL TRADE REPORT.
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London, Friday Evening. There can be no ...
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Note: This text has been automatically extracted via Optical Character Recognition (OCR) software. The text has not been manually corrected and should not be relied on to be an accurate representation of the item.
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Na 46a, ^^1^^5 ^ 18590 The Illabeb, 187
Na 46 a , ^^ 1 ^^ 5 ^ 18590 THE iLlABEB , 187
C O M Meeoi A Ju
C O M MEEOI A JU
Insolvency In The United States.-^Credit...
INSOLVENCY IN THE UNITED STATES .- ^ CREDIT . A communication from the office of the Mercantile Agency , 314 and 316 , Broadway , New York , informs us that the number of failures in the United States in 1857 was 4932 , with a total amount of liabilities of 291 , 750 , 000 dols ., something more than 60 , 000 , 000 / . ; and in 1858 the number of failures was 4225 , with a total amount of liabilities of 95 , 749 , 062 dols . In the former year , the average was one failure to 59 , 150 dols . liabilities , in the
latter , one failure to 22 , 650 dols . liabilities . In the two years the failures were 9157 , the liabilities S 87 , 499 , 662 dQls ., and the average of each failure , 42 , 300 dols . After these events in two consecutive vears we are assured that the present aspect of commercial affairs affords ground for congratulation " It is somewhat chequered ^ but encouragement is the prevailing feature . " This is a complete confirmation of what we have repeatedly stated , that , the great commercial convulsions about which so much is written and said , and such exaggerated
average ; in New York ( the state ) , the crop of 1858 was about an average ; in Pennsylvania the crops were small ; in Ohio an average , & c , so that the increase of bankruptcy in Canada and m the western states , in 1858 , is due to the harvests of 1858 having been very , short , while those of 1857 were not good . The consequence , too , of this is -that trade revives much more slowly in the United States than here , where the harvests were good in both years , and where all kinds of commodities are almost unusual l y abundant . The trade of the United States will , consequentl y , not be large this year , a fact of great importance to our exporters . To preserve a memorial in a succinct form of this convulsion , we insert the number of failures in 1857 and 1858 , with the liabilities , in a tabular form : —
fears expressed , are a mere settlement of accounts between the debtors and creditors of the commercial classes ; they destroy but little property , they suspend industry for only a short period , or divert it into other channels , and . inflict less injury on society than many a temporary pol i tical change which passes almost unnoticed . To pass from this general view to some particulars : in the city of New York , the failures were , in 1857 , 915 , liabilities 135 , 1 ^ 9 , 000 dols . ; , in 1858 ,
failures 406 , liabilities 17 , 773 , 462 dols . As we assume the failures of the two years to have resulted from one cause , we put these figures together , and say the failures in New York , in consequence of the convulsion , were 1321 , with liabilities to the amount of 152 , 902 , 462 dols . In Philadelphia the failures were , in 1857 , 2 S 0 ; in 1858 , 109 ; liabilities for the two years , 42 , 956 , 385 dols . ; in Boston , failures in 1857 , 253 : in 1858 , 123 ; liabilities for
the two years , 45 , 188 , 925 dols . ; and in Chicago , a town as it were of yesterday , failures in 1857 117 ; in 1858 , ' 87 ; liabilities for the two years , 10 , 162 , 664 dols . Such insolvency is to be found , we believe , in up other country , aud is indicative of the vast extent of speculation and the narrow margin of profits on which trade is conducted in the Btntes . The communication also informs us of the
ntimber of failures in Canada East and West , m Nova Scotia , aud in New Brunswick ; in all the three , in 1857 , 1 S 6 , with liabilities of S , 051 , 000 dols . ; and in 1 S 5 S , 312 , with liabilities of 4 , 437 , 909 dols . Similar facts , therefore , arc observed in the States and in our provinces , the average of the
liabilities being much loss in both in 1858 than in 1857 , but judging from tho much greater number of failures in our provinces than in the States in 1 S 5 S than in IS 57 , the reverberation of the convulsion of 1857 would appear to have been much greater in the former than in tho latter . An explanation of this circumstance is found in . the fact that the Western States of the Union being chiefly
agricultural , like our provinces , show in 1858 , as our provinces show , a groator amount of insolvency than in 1857 . InNow York ( tho state ) the decrcaso of failures in 1 S 5 S is nearly 40 per cont . as against 1867 , but excluding the city , the proportionate reduction in 1 S 5 S fa much loss . Again , in Now England , the-number of failures in . 1-S 58 as against 1857 shows a decrcaso of 30 per oeul ; . ; in Michigan , however , tho failures in 1858 are noarly equal to those 011867 ; in Illinois they increased , ohiefly amongst the agriculturists , 20 per cent , j in Wisoouein , 23 nor cont . ; and in Minnosota , whore speculation had run riot , tho country is described & b Btiil suffering very muoh , whilo taxes remain unpaid to a largo oxtent . In addition to vast speculation iu . land , hoih in Canada and in tho Western Statos , the uhorfc crain crops of 1867 were
followed by still shorter giuiu crops in 1858 . Iu Canada , says the dircuJlar , n , good wheat harvest in 1858 would , no doubt , havo caused a roaotion ; it ¦ was , howovor , a failure ,, , In Indiana , the wheat and com orops in 1858 woro not above ono halt an
, 1857- 1858. ! No. Of Total No. Of J To...
, 1857- 1858 . ! No . of Total No . of j Total ; Failures . Liabilities ; Failures . Liabilities . i Dols . | Dols . U . States . 4932 291 , 750 , 000 4 , 225 95 , 749 , 662 BritProy . 186 8 , 051 , 000 312 ; 4 , 437 , 909 Total ... i 5 , 118 299 , 8 Ol , OOo | 4 , 537 ' 100 , 187 , 571
Stance—:Are. Prepared And Ready For Cons...
stance— : are . prepared and ready for consumption and use . It requires a man , now , four months at least before he caii command a cargo of tea from China : formerly it required a year . But it only requires a few days or hours for the spinners and weavers to complete the commodity for which in reality this tea will be exchanged , and by which it will be paid for . This inequality makes it indispensable that all those who engage in works requiring a long period to produce them should take credit . But in most cases , as in the communication with China , and as in fattening oxen , the time in which commodities arc made fit for the market has latterlv been very much abridged , and the time for shortned
Of course all . these failures are the result of an abuse of credit ; but we must not , therefore , infer that the use of credit is wrong . The basis of all credit is future production , and those who have no productions coming forward have no claim to credit . Those , too , whose incomes depend , like those of Governments , on the industry of other men , are not justifi e d in taking credit . The great natural base of credit comes into existence when commodities useful and necessary to society — a railway and a loaf of bread , a bridge and cup of tea , for
iuwhich credit is required proportiouably e . Attention enough has not been paid to this circumstance , and though , as in the case of China , the usual period of credit has been much shortened , it has not been readily shortened in all cases , and this has given opportunities to those who should at once pay then debts to extend their speculations and lose their all . Credit is in truth a part of tho great system of division of labour , and has only come prominently into general use , as a means of promoting produc * tion , within a century and a half . Like other new things it has been very much abused , and nowhere so much as in America ; but even there tho people are learning , as in Europe , its true nature and qualities , and bcooniing wiser and more cautious with every disaster .
It is quite true , as assertod by the Glasgow Chamber of Commerco , that tho " best seourity against commercial convulsion is to limit credit . The noarcr we como to a cash busiuoss the sounder will be our trade . " If thoro were no credit there would be no indebtedness , no adjustment of aooounta , and no convulsions , If all business wore carried on by lead y money , received in ono hand as the goods were delivered by the other—tho practice in Italy—thoro would bo no occasion oven for aocounts , oxcopt for each trader ' s own satisfaction . Ho could never bo called on to submit them to creditors or to tho Bankruptcy Court . How much the transactions x > f each trader would bo curtailod
by a business earned on totally by oash , exclusive or bank-notes •—credit in a peculiar shape—we cannot possibl y ; oonooive : but if the stability of oomtnerce bo "in an inverse ratio to the dovolop menfc of credit , " as the Ohambor , we think , untruly says , it enn only become stable by limiting its amount .
General Trade Report.
GENERAL TRADE REPORT .
London, Friday Evening. There Can Be No ...
London , Friday Evening . There can be no doubt about the fact that our manufactures and general trade are greatly affected by the uncertainty that prevails on the subject of war on the Continent . The perplexing portion of the affair is that , assuming war to be inevitable , no one knows where to fix its limits , and whether this country is to be a mere spectator or to take an active share in hostilities , should they become of a formidable character . The Queen ' s speech was looked forward to as one means of affording a solution to doubts ; but now" that is before the
manufacturing districts , there appears to be no augmentation either of information or confidence . The Emperor of the French ' s speech is now the subject on which attention is fixed , and , according as it proves peaceful or otherwise , so will business be affected . The present week has not been marked by any particular feature , except that of prudence and caution on the part of dealers and manufacturers . Altogether , however , business is good ; and were it possible to look into the future , and to predict ¦ with confidence that peace would be maintained , there can be no doubt that every branch of our manufacturing industry would experience an impetus that it has not felt for many years past .
Ltveepooi .. —The cotton trade during the'early part of the week was rather languid , but , on . favourable advices from America , an active demand sprang up , and large sales were effected at a decline of ^ d . per 1 b . S £ AJfCHESXBK . —Were it not for the large orders for India still on contract by manufacturers , we should have had to report a quiet market , but the India orders keep mills and spinners going , and will keep them steadily at work until their . contracts are run off . The decline in the . cotton market , however , has had a slight action in prices . Spinners are inclined to make prices rather
easier , but there is nothing yet of consequence to report on this head . There is one circumstance that cannot be passed over without notice- ^—we allude to the . threatened strikes among the mill operatives . ' . ¦ The operatives consider that the good prices of large contracts recently obtained by their employers entitle them to ask higher wages , and in some cases they have given notice that they will " strike" unless their' demands are complied -with . We trust the operatives will , not listen to the representations of artful men , but will be guided in this matter by their own good sense , and the true interests of themselves and families .
Leeds . —For woollens , in our cloth halls , a fair market has existed . We may report . generally that the trade is active , and that prices are good . Bancy tweeds , fancy mixtures , and light goods aTe still in request , but plain broadcloths of good quality are not neglected . Bradfokd . —A more active state of things is beginning to take the place of that dulness which has prevailed for some weeks , past , in consequence of the high prices to which particular kinds of wool attained . We believe that easier prices are submitted to , and that more business is the result . Noils and shorts in steady demand ; worsted yarns still in active request , and the market without any accumulation of stock . Of course the unsettled condition of continental politics has its effect on our markets .
Leicester . — 'The hosiery trade is rather quieter . Tho open weather has somewhat operated on business , but that which is doing is of a sound aud legitimate character . First-rnto quality wools continue to fetch high prices , but spinners appear to be tolerably well supplied , Nottingham . — -The laco trade is still 'inactive , but there is some more inquiry for Mechlins . A few German orders have been received , but not so many as the time of'the year would warrant . Tho hosiery tnulo is still very lively . In tho framework knitting districts tlio business done is steady , and tho operatives ore exceedingly well employed . Uaiuvax ,. —A dull market both for wool and pieces . A small decline of 4 d . per lb : took place in tho higher priced wools .
Roohdalb . —The local wool trado is dull . Merchants and shippers are evidently waiting until the market turns more decidedly in their favour . WooXi Tradic . — . In the London market there has boon loss activity than lnst week , but prices arc -pretty well supported . Holders are-waiting to see tlio result of tho next colonial sales . Simc TnADic . —Tlw market hue . been rather depressed . The deliveries for the laot month wjsre 592 C bale , 8 . Tho iron ami Irarihvnro traders aro not over brisk , but they nre not dull . Tho iron trado of Staffordshire ntnl South Wules is tolorably well omployou ou railway orders ,
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Citation
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Leader (1850-1860), Feb. 5, 1859, page 27, in the Nineteenth-Century Serials Edition (2008; 2018) ncse2.kdl.kcl.ac.uk/periodicals/l/issues/cld_05021859/page/27/
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