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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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ikSOIiVENOT IN THE UNITED STATES— CBEDIT . 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 dois ., something more than 60 , 000 , 000 / . ; and in 1858 the number of failures was 4225 , with a total amount of liabilities of 95 , 749 , 662 dols . In the former year , the average was one failure to 59 , 15 , 0 dols . liabilities , in . the latter , one failure to 22 , 660 dols . liabilities . In the two years the failures were 9157 , the liabilities 387 499 , 662 dols ., 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 encouragexnent 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 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 political change which passes almost unnoticed . To pass from this general view to some particulars : in the "Sity of New Tork , the failures were , in 1857 , 915 , liabilities 135 , 129 , 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 , inl 857 , 2 SO ; 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 , 1 S 8 , 925 dols . ; and in Chicago , a town as it were of yesterday , failures in 1857 , 117 ; in 1 S 58 , 87 ; liabilities for the two years , 10 , 162 , 664 dols .. Such insolvency is to be found , we believe , in no other country , and is indicative of the vast extent of speculation and the narrowmargin of profits on which trade is conducted in the States . The communication also informs us of the number of failures in Canada East and West , in Nova Scotia , and in New Brunswick ; in all the three , in 1857 , 186 , with liabilities of 8 , 05 l , OOO . dols . ; and in 1858 , 312 , with liabilities of 4 , 437 , 909 dols . Similar facts , therefore , arc observed iu the States and in our provinces , the average ot the liabilities being much less in both in 185 S than in 1 S 57 , but judging from the much greater number of failures in our provinces than in the States in 1858 than in 1 S 57 , the reverberation of the convulsion of 1857 would appear to have been much groatev'in tho former tlmn in the latter . An explanation of this cirpumstancc is found in the fact that the Western States of tho Union being chieily agricultural , like our provinces , show in 1858 , as Qur provinces show , a greater amount , of insolvency than in 1857 , InNow York ( the state ) the decrease of failures in 185 S is nearly 40 pcic cent , aa against 1857 , but excluding the oity , tUo proportionate reduction in 1858 is muoh loss . Again , in Now England , tho number of failures in 1 $ 58 as against 1857 shows a docroaso of 30 per cejit . ; in Mionigan , however , the failures in 1858 are uoarly equal to thoso of 38 S 7 j in Illinois they incroasod , ohiefly amongst tho agriculturists , 20 per cent , ; in Wiscpja sin , 23 per cent . ; and in Minnesota , whore speculation had' run riot , tho country is desoribod as fttUls suffering very much , while taxes remain unpaid to a largo oxtont . In addition to vast speottlfttioa in land , both in Canada aud in . the , Western States , tho short grain crops of 1857 wore [ ollowcd by still sho * tor grain crops in 1858 . In vanada , says the circular , a good whoat haryost in A 858 would , no doubt , havo caused a reaction j it was , however , a failure . In Indiana , the wheat aud corn orops in 1858 were not above one half an
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 in 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 yearsj and where all kinds of commodities are almost unusually abundant . The trade of the United States will , consequently , 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 : — - ~~~ ~ 1867 : 1858 T ! No . of Total No . of . j Total \ Failures . Liabilities . Failures . . Liabilities . ! : - 1 —i-r- — : — --. — : : — 1 Dols . I Dols . U . States . 4932 291 , 750 , 000 4 , 225 ; 95 , 749 , 662 BritProv . 186 8 , 051 , 000 312 ! 4 , 437 , 909 i ¦ ' i | — . — - ' ¦ — Total ...: 5 , 118 299 , 801 , 000 4 , 537 100 , 187 , 571 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 justified 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 instance—are prepared and ready for consumption and use , It requires a man , now , four months at least before he can 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 are made fit for the market has latterly been very much abridged , and the time for which " credit is required . proportionably shortened . 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 their debts to extend their speculations and lose their all . Credit is in truth a part of the great system of division of labour , and has only come prominently into general use , as a means of promoting production , within a century and a halt . Like other new things it has been very much abused , and nowhere so much as in America ; but even there tho people aye learning , as in Europo , its true nature and qualities , and becowning . wiser and niore cautious with every disaster . It is quite true , as asserted by the Glasgow Chamber of Commorce , that the " best security against commercial convulsion is to limit credit . The nearer wo come to a cash business the sounder will be our trade" If there were no orcdit there would be no indebtedness , no adjustment of accounts , and no convulsions . If all business were oarviedon by ready money , reoeived in one hand as the goods wore delivered by tho other—tho pra , ctico in Italy—there would be no occasion oven for accounts , except for oaoh trader ' s own satisfaction . Ho could novor bo called on to submit them to creditors or to the Bankruptcy Court . How muoh the transactions of each trader would be curtailed by a business carried on totally by cash , oxolusive oi' banknotes—oyedit in a peculiar shape —we cannot possibly conceive : but , if tj * e . stability , of commerce bo in an ? inverse ratio to tho develop * ment of credit , " as the Chamber , wo think , untruly says , it can only become stable by limiting its amount .
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I GENERAL TRADE REPORT .
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. London j 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 ia 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 inany years past . Liverpool .- ^ -- The cotton trade during the eariy 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 id . per lb ..... Manchester . — -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 . Fancy tweeds , fancy mixtures , and light goods are still in request , but plain broadcloths of good quality are not neglected . Bradford . — A more active state of things is beginning to take the place of that dulhess which has prevailed for some weeks past , iu 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 . The open weather has somewhat operated on business , but that which is doing is of a sound and legitimate character . First-rate quality wools continue to fetch high prices , but spinners appear to bo tolerably well supplied . NoTTJDtfaH . AM . ~ The lace trade is still inactive , but there is some more inquiry for Mechlins . A few German orders have been received , but not so many » b tho time of the year would warrant . The hosiery trade is still very lively . In tho framework knitting districts tho business done ia steady , and tho operatives are exceedingly well employed . Halifax . —A dull market both for wool and pieces . A small deoltao of id , per lb . took place in tho higher priced wools . Rochdale . —The loonl wool trade is dull . Merchants and shippers are ovidently waiting until tho market turna more decidedly in their favour . Wool Tradic— -In the London market there has bqen loss activity than last week , but prices are pretty well supported . Holders are waiting to see the result of the next colonial sales , © xlic T » Ar / w .-i-Tl » e market has been rather depressed . The deliveries for tho last month were 5926 bales . The iron and hardware traders are not-over brisk , but they are not dull . The iron trade of Staffordshire and , South Wales is tolerably well employed ou railway orders ,
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No . 4 , 63 . rESBTTAB * 5 , 1 $ S 9 . ] THE LEADER . 187
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Leader (1850-1860), Feb. 5, 1859, page 187, in the Nineteenth-Century Serials Edition (2008; 2018) ncse.ac.uk/periodicals/l/issues/vm2-ncseproduct2280/page/27/
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