Herald of the times. [volume] (Newport, R.I.) 1830-1846, 1837-04-27

STATE OF MATTERS AT THE SOUrH.-We
copy the following article from the New Or
leans Bee ian Administration paper,) Of the
18th inst. 1t gives the Iaost gloomy aud
discouraging picture Of affairs in that quarter,
that we have yet seen, from any source, aud
we hope it may prove exaggerated.
Probably the commercial affairs at New
Orleans were never previously or apparently
in so awful q condition-merchants find it
their interest to suspend payments rather than
continue business under the present icartu!
risks of pecnniary sacrifices; and banks feel
it to be their duty to secure themselves first,
and afterward to think Of bencftting the com
munity. The excitement, the terror. the
ponic--or whatever you please to term the
state Of public feeling-pervades oil ranks;
merchants have no confidence in each other;
and banks dstrus, iheirfivals. To negotiate
the best paper by brokers, from FIVE to six per
cent month is required; and even then pay
ment is required to be guaranteed; but Ms for
expecting either onns or discounts from the
banks, it is almost out Of the question; except
ing the notes of some favorites, and having
only few days to run.
Almost one fifth Of the bank directors arc
now Insolvent, or have suspended payment;
and hence it is difficult il not impossible to
acquire the combined action of Our banks, on
any specific mode Of relief to merchants. IT
is feared that there are only two or three Of
the large commission houses can forbcar from
becoming really or apparently insolvcnt II
is feared that all the cotton buyers ot the
present and last session, must suffer like the
cotton factors; and that the cotton planters
cannot survive the shock. And afterward, It
is dreaded that all the notes on mortgages of
property lately sold in Louisiana and Missis-
sippi, will be little better than waste paper.
The liabilities Of the cotton factors and
buyers are commensurate with the exports OF
the city-say IS millions; including the Ies-
possibilities the actual planters, the amount
may be 100 millions. But taking into consid-
Grafton the amount due OH land or real estate
speculation, the actual Indebtedness of New
Orleans may be fairly estimated at $500, 600,
600. From what sources can this amount be
,presentlyproduced? Acceptnnces have been
given 12 months in advance on crops; cotton
buyers will lose nearly 40 per cent on their
purchases and expectations; and land spccu-
lators arc from to IS years in advance of the
productvoness Of their lands and lots. Fac
tors have nothing for their acceptanccs; plan
tcrs Can make ho'nihS ny the PIcscht P'iSc
Of their produce, to 10 cents the H.; buyers
must lose oil expectation, in consequence Of
the depressed condition of the Liverpool and
Havrc markets; and the land and lot specula.
tors have only representative value Of about
l dollar in 10 or 20.
Reliefis, therefore, almost impossible; and
some Of the most discreet and experienced
citizens Judge it preferable to allow the evils
their present onward and fearful course,
which may probably continue for six or eight
months longer. The commercial horizon is
SO obscured, that scarcely ray of hope glim-
ners in the vista. All is darkness, doubt and
despair. .,l7E ..