Southern Argus. [volume] (Columbus, Miss.) 1834-1842, 1839-08-13
[voLUME V-NUMBER As.

BY far, the most important branch of thei
export trade.
8. Consequently. any arrangement tina
could be formed, By which the article
would be protected from the effects ofun
/ due speculation. and from depression il
the money market, and by which steadi
ness of price, with currency of sale. woule
be promoted-would save some of the
greatest and best interests in both eoun.
tries.
z. It IS therefore proposed 10 form .
system by which, with the commence.
ment of the new crop, advances on Cot.
ton shall be made with the capital or cred.
It of banks here, thereby relieving the
conslgnee IN Europe from all care or con.
sideration, exceptfhe advantageous sale q
his stock. which would promote all these
interests, and afford general satisfaction
on both sides of the water, provided il
were not made the means directly or indi.
freely. of undue speculation or MONOPOLY.
Having thus indicated the principles on
which the proposed system must find its Jus
LITIGATION and basis, we VIII now as sue
cinctlyas possible. detail hemeans of car
rying it into effect.
We are far from imputing any premed-
ltated hostility of the Bank Of England to
American interests; 1.-the contrary, it is
one of the benevolent influences of com.
mercial intero curse to promote peace and
good will among nations and men. Hence
this great engine of the commercial gran.
deur and opulence of Great Britain, act.
ing under an enlightened instinct, must
rather desire that It's best customer. should
at all times be in a condition to meet her
engagements with entire punctuality and
success.
But there are epochs in the commerce
of England, whether from insufficient har-
vests, a languid demand for her manufac-
lures, or political combinations, when the
bank may from an urgent policy limit her
discounts and increase herrate of inter-
est. This event can never occur, with
out its having a blighting influence on any
surplus of our great staple which might
be unsold in England. Surely if the Bank
of England can exercise nnayoidably an
influence thus prejudicial, we may resort
to our own American banks, as a means
of security and protection, without the
invidious clamor of combination and mon
opoly. 1t is time that the absurd and
senseless cry on the subject of banks ma
king advances on cotton should be under
stood, and finally put down. The truth
is that by the mere purchase of the for
eigu exchanges of the country, they ad.
vance on nearly every bale of Cotton sub
ject to foreign export, and this without the
security of the bill of lading and policy of
insurance, on the mere personal response
bility of the drawersN endorsers ofthe bill.
Hence these losses are most comprehen-
sive and disastrous after every commercial
crisis and reyulsion.
Now we propose giving to the banks in
all cases the higher protection ofthese Sc
curities, and that early next autumn, one
or more banks in each of the great COM
mercial cotton markets ofthe South should
commence making advances on the crop,
according to a scale TO be graduated by
what will be safe calculation of its prob
able amount, assuming 10 1-2 cents al
home to be about the fair natural avarage
and remunerating price of this staple, on
a product of sixteen hundred thousand
bales, which is about as large a return as.
the actual labor of the country now en-
gagged IN this branch of industry. is capa.
bic of harvesting. The endorsements
of the Southwestern States having preycn-
ted the planters in these States from ma
king any purchases of slaves from the
Atlantic States; during the last two years,
whilst not less than ten per cent. ofthe
slave labor of the South has been abstrac-
ted in the same period from the cultivation
of cotton, and applied to the raising of
provisions, and to the construction Of those
extensive railroads now in progress
throughout that portion of the Union.
For these advances we propose that
the banks should issue to the planters,
merchants, and factors of the country, on
the production of the bill of lading, and
the assignment of the policy of insurance,
post noIes of such description. and paya-
BILE at such periods as a convention here
after contemplated may suggest. notes
which may be made to answer both the
purposes of Currency and exchange, the
details of which we refer to that body.
By this arrangement, however, we feel
satisfied the credits can be so distributed
that from The day of the shipment Of our
cotton it may probably be held at least
six months in Europe, without the foreign
consignee being under an advance of one
farthing, and we think it quite easy TO
confer on the houses 10 which the ship
ments arc confided, sufficient strength 10
enable them 10 hold over for even lon
ger period, should safe remunerating
prices not be obtained on the maturity Of
the bills.
With the view of securing this strength,
! it is indispensibly necessary, that the con-
signments should not be too much ditfu-
sed, but confined 10 a limited Eumber Of
houses in Liverpool and Hayre, who,
acting as the agents of all those who will
come into this conservative system, vii
/ feel a common interest. and willnaturaliy
aid and assist each other under all and
every contingency.
This fellow citizens, is but the briei
outline Of n great scheme, for the proiec-
ton Of our commerce, finance and ex-
changes, the details Of which, must be
/ left for profound deliberations and concer.
lied actisn. To accomplish this object
we hereby invite. the planters, factors ana
cotton merchants Of each district or conn
/ ty III the Southern States, and Territory