Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1839-08-08
CIRCULAR


several Banks ofthe Southern States:
CIRCULAR.
Ee1lou cili-ens-Inlerestcd like vour-
selves in the cultivation and disposal of
the srea, staple Of American agriculture
and commerce, we have accidentally met
In this city, in the midst o! a crisis which dis
closes some striking y mnmanIouS features
in the history of this most important branch
Of the trade Of our country
When the cotton crop of the United
States was mere item in the trade. and
did not reach production exceeding five
hundred thousand bales.it was perhaps safe
10 consider it as one among many articles
OF barter ana exchange. which, left entire
ly 10 the forluilouS circumstances of COM
1ncrce, would find its level under the innu-
cnce of the ordinary laws of trade, with
ou, the necessity Of rcsor'lngto any means
precautionary protection.
Times, however, have changed. Cot
ton has passed from the condiIion of a
mere article of commerce, to the perform
ance of The mighty function of being in Il
great degree the regulator of the exchan-
ees, aud the standard Of value of our coun-
fry. If The nature of this material forhids
its entering in our circulation, it is scarce
ly less the basis Of our currency, than the
Drecious metals; for the iluc uatlons in lis
price are felt with sensibiiiiy equally, as
acute and searching, a, any ofihose vara
tions which belong 10 the demand aud sup
ply of these sensitive and mysterious TO-
kcns of national value.
The production of this staple, has now
become so immense, thai il behooves hose
who produce il by a large investment OF
capital a, n high rate Of incidental cost,
and in climate pcrilous to human health,
10 consider well, whether there are not
some material circumstances in reference
to the mode in which this product OF their
labor;s shipped from this country. and is
brought TO market at the point Of its inn!
sale and consumption. which demand the
application Of prompt and effective rem
edy. In one word, is moi The important
fact disclosed. that such is the unwielJly
amount Of this great staple of Southeln
Industry, that il cannot he sent forward aud
disposed of at fair remunera'img prices,
through the ordinary medium Of The mer-
camille establishments oflhis country AMI
in Europe. without the direct co-operalion
of our banking institutions? If we have
become satisfied Of this fact, ought we not
TO organize a system. which shall give per-
feet security 10 this great interest in the
commerce and finances ofonr countrv!--
The unwise and ruinous system Of sending
the crop forward 10 houses or rcircumscrhed
means, on the other side of the water,
who are incapable Of holding their con-
signnents an hour beyond the maturity Of
the bills drawn against such shipments,
subjects in fact nearly The whole amount
of American interests to foreign combina
ton, which might act, not nnlv with entire
concert, but with perfect knowledge of
the period. when from the maturity of the
acccpiances in question, property 10
stupendous amount belonging to rhis coun
try, may be ready for sacrifice.
The great and vital change which mus,
be operated, is to sustain American inter
csts. by American credit. To realize al
home. the resources necessary for the pro-
tcction Of our property abroad. without the
necessity oflarse and incnnvenien' drafts
on the capital and means ofour great Gus
toner. In other words. the commercial
reform VIC desire, is to send our grea, sta
ple TO market, wilhuu, The period being
determined " the date of Bill of Ex-
change. when it is 10 be brought forward
for absolute and unnecessary sacrltlce.-
We believe that the steadness in price,
which would result from portion. at least.
ofthe Cotton crop being exempt from the
disastrous fluctuations arising from COM
pulsory sales, would in the end, he scarce
iy less valuable TO The spinner and consul
,ner in England. than to the grower and
shipper here. 4 fact, which we think de-
monstrahle from the following poStulates,
which we consider altogether self-evldent;
]. The natural price Of Cotton is the ef-
feet Of the fair and natural influence of
supply and demand.
2. The price cannot bc steady, and the
article cannot be current. so rs to admit ol
safe calculations on the part of the plan.
ters, the manufacturer and tho merchant.
unless the price be natural. II is co"se-
ouently the interest of these three classes,
that the article should he protected on The
one hand from anv great aud undue specu-
fative action. which might initiate prices
above the natural rae-and on The olher,
from any arrangement in The money mar
ket. or any other accidental cause, which
might deprcssit below that rate. The et.
feet Of great undue speculation being 10
.lerange the money market. and to pro-
duce reaction. with an undue depression
Of prices.
3. The stale Of the currency mainly de-
pends on the means which the country pos
sesses 10 pay its foreign debt, by shipments
of its produce. To the extent its produce
or manufacture falls short of thai object,
expor,s ofspecie may he induced, the effect
Of which must be reduction Of the circu-
lalion, with depreciation Of property and
general distress
A. Chiffon. in This country, being by far