Cheraw gazette and Pee Dee farmer. [volume] (Cheraw S.C.) 1838-1839, 1839-09-27

! US. We concurred fully in certain leading
features Of plan, for restoring the trade
in that staple, which is the actual currency
o. onr foreign commerce, 10 something like
the stability and uniformity which should be.
long to an article performing function so
highly importsnt-a plan which would, at
the same time, promote the interests of the
cotton planters, give to our southern banks
that control over the foreign exchanges, that
naturally. and rightfully belongs to the States
which produce the staple upon which nearly
all the foreign bills ofthe United States are
drawn and by this means give powerful
aid, to the direct trade Of importation and
expectation, through our southern cities, in
which all parties among US take 80 deep an
in.eres,.
| will now, very briefly, state the out.
I hhnas -ofshe plan, To which, hsxa alluded, 30
far as my views and opinions are involved
in it.
Ipropose that the exiting banks, in the
cotton growing States, should discount the
notes Of cotton planters and others, upon
tho security of cotton, actually deposited in
a neighboring warehouse, every paper being
in possession ofthe bank, necessary TO the
completeness and security ofits len. That
the notes should be discounted at 80 days,
with an understanding, that if the proprie-
tor Of the cotton determined not to have It
shipped to Europe in that time, the note
must be punc'ually paid at its maturity, or
the Bank be authorized to have the cotton
sold, holding the surplus, after paying the
note, as deposit to the credit Of the pro-
prielor.
But ifthe proprietor determined to ship
his cotton, which it is presumed would be
the case, in most instances, the Bank should
be authorized, at the end of the ninety.days,
to- draw a n:nety.day bill upon Europe
against the cotton, having been at the time
Of the shipment, placed 70 possession Of all
the documents necessary to make that au.
thori,y affective, the planter or proprietor,
retaining the control over the times and
terms Of selling the cotton, provided it be
sold in time to discharge the bill drawn
against it, at it's maturity.
| This is the whole sum and substance oi
the plan, so far as have had any agency
in it. In setting down ninety days as the
time that the notes discounted, and bill:
drawn should have to run, I have merely
adopted what suppose would be convenien
periods. subject of course to such modi6ca
ito Is as experience may suggest
This is very simple plan, entirely unin
. numbered with new or experimental ma
; chinery and though it aims to work NJ
miracles, | will point out in few words
what consider the plain results and obvi.
Gus benefits it would produce, to our banks
and our cotton planters and our merchants
1t would place our banks on more solid
foundation than any other banks in the Uni
ted States, by giving them constant sup,
ply Of foreign exchange. For example,
send my cotton to Charleston, at any con.
venent periods. apply to one Of ou'
banks, to discount my note at 80 days, upor
the security Of that portion Of my cottor
actually in the warehouse, instead Of per
. sonal security the bank having the cottol
inspected, its current value estimated BY
competent judges, and discoun,ing my note
for such an amount US will render the tran
saction perfectly safe. A. the end Of tia
go days, pay off my note, not in the bills
of tho bank itself, which it canno: conver
into specie, bu, in an unquestonable bill OF
exchange on London, which l authorize II
to draw. payable ninety days afier sight, on
Barring. Brothers, &c Co., with whose house
10 Liverpool, | have in the mean time, eau
sed my cotton 10 be deposited, subject to the
lien ofthe bank. Now, every well-iuform
banker knows that, a bill Of exchange upon
London, is to bank here precisely equiv
alent 10 so much specie in its vaults. Fol
all practical purposes, therefore, pay of
my note TO the bank in specie. 1t follow:
that q bunk, that would 60 largely into this
business, would have constan, supply o.
sturling exchange, ofthe most unquestioua
, bic kind, that would render it perfectly i'm
pregnable. So much for The immediate
benefits this plan would confer on our south
ern banks.
The benefits which the planter would de-
rive from it would be, in the first pclae, the
; prompt conversion of a large proportion O
his colt into cash, as soon as it reached
, the market, without selling it, and without
asking any costly favors Of his factor o.
any body else for the transaction with thu
bank, however, beneficial TO the planter
would be comforting favor instead of re-
ceiving it. In the next place, the plantel
would have six months and half or sever
months, from the time he received The ad
vance upon his cotton, to avail himself o
any favorable changes in the market, if ht
should choose to ship il to Europe. A bill
drawn on England a, 80 days sight. coule
) never be presented in less than Is days, ano
often in not less than thirty, after it's sale
here 81 that this much would be added tc