Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1839-08-05
CIRCULAR


the Southern States:
CIRCULAR.
FELLOW CITIZENS: Interested like Yourselves
IN the cultivation and disposal of the great staple of
merican agriculture aud commerce, we have acc
uehlay met IN this city, IN the midst OF a crisis which
diseloses some sirkngly momentous features OF III,
history III this most important branch OF the trade o
our country,
When the Cotton Crop of the Untt ! States was
u mere item in its trade, aud did not reach pioduc.
uon exceeding five hundred thousand bales. il was
Pethaps sale To consider II rs among many afti-
elos oil barter and exchange, which, left entirely
the iofnous circumstances of commerce. would
hnd ils level under the influence OF the ordinary laws
OF trade, wthun, the means of resoiling TO any
means OF precautionary protection.
Times, however, have changed. Cotton has pas
sed rom the condition ofa mere article OF commerce.
I" performance OF The mighty function ol beng IN
great degree the regulator Oft the exchanges and
Tue standard OF value OF our country. 1.-THE nature
OF this material iorbids IT'S entering into our ceun
non, II ~ scarcely less the basis OF our currency
lhan tue precious metals /; for the fluctuations IN
IT'S pien are tell with seuslbility equally rs azure
a"" soaienlng rs any OF those variations which be
iohR To the demand aud supply of these senstiye
"hd mysterious tokens of national ynlue
lhe production of this staple has now become so
",hense' that II behnoves those who produce II by
"'Ro investment Of capita NJ u high rate of ,nci-
' '"S' "nd IN cltmno porilous 10 human
''"',a, circumstances IN reference TO the mode in
"hleh lhls product OF their labor is Skinned from
'u's 'ountiy aud Is brought 10 market NJ the punt
w !" '''' sue anu consumption, which demand The
'lV'''''oo OF prompt and effective remedy. IL
one word ~ not the important fact discIn,,d tbni
S"eh IL TIE unwiedy amount Of this great sinne of
southern industry, that IT cannot he sent forward
hnd disposed of al fair remunefanV p,ices Ihtouph
tue ordinary Wedinm of the mercantile establish
mems o' TINS country aud IN Europe. without the
"rect co operation al orr banking institutions II
we have become satisfied ofihis fact ought we moi Ia
organize system, which shall give perfect ,cenrry
10 thls great interest in the commerce and 6nane es
~ our country The unwise ADD fuinons system OF
sfnd'ne te crop forward to houses of eiicuso RIB
Ell means on the other SIDE Of the water who are
incapable OF holding their conslgumenis an hour be
yond The maturity Of the bills drawn against such
shipments subjects, IN fact. neatly the whole amount
OF American interests to foreign combination, which
might act, not only with entire Concert but with n
perfect know ledge OF the poind, when, from the
hAluily OF the aeeeptances III question, property 10
n stupendous amount, belonging 10 tins cuuut5,
may he ready idr sacrifice.
The Rtept aud vital change winch must be effect.
ed IS TO sustain American interests, by American
circuit 10 realize NJ home le resources necessary
of the protection Of our properly abroad without he
necessity oi large aud announcement drafts on the
caPlhl aud means OF onr great customer In 9th.
81 words, tho commercial RETURN w desire is To send
oni great staple 10 market. willua the period being
determined by The date of u bill of exchange, when
II Is 10 be brought forward for absolute and unnee.s-
safy sacrifice. We believe that the sleadiness In
price "nlch would result from PORTION NJ least OF
lne cotton crop being exempt from the disastrous
fluctuations arising from compulsory sales would IN
the end be scarcely less valuable to the spinner and
consumer IN England, dian 10 the grower and ship
per here. fact, which, we think, demonslfable
llom the following posrulates which we cunsd
altogether self evident
l.. 'lp ,ip r Il.
IAN and natural lhflneuce Of supply and demand.
2, The price cannot be steady. aud Tie article can
not be current, so AZ to adm Of sale calculations
on the part Of the planter. the manufacturers. aud
merchant, unless the pnce be natural. 1t ~ conse-
quenty the interest of these three classes that the mr..
iiee should be protected, on the one hand from any
great and undue speculative action which might
initiate prices above the natural rale-and on the
Other ifon any arrangement IN the money market
or any other accidental cause. which might depress
II below that rate. The effect of great and undue
speculation beng 10 deiange The money mark et and
to produce re 4efion, with an undue depression of
prices.
3, Tho state Of tho currency mainly depends on
The mems Which the country possesses To pay lis
loclra debt, by shipments al lis produce. 70 the
extent It's produce OF manufacture falls short OF thai
Object, expolts OF specie may be induced the effect
OF winch must be reduction Of tho circulation,
WIN depreciation Of property and general distress.
L. Cotton IN tins country, being by far the most
important produce. and afofding the great means of
paying lis foreign debt, il IS The interest ofihe
mnnlty, and particularly OF the monicd institutions.
that the pnce "i It IN England THE great mar-
ketl should be steady, and that the article should he
OF current sale 81 as TO be tie means Of large and
effective femlttanecs II follows that the interests OF
the banking institutions here the same as those
OF the three classos first mentioned, namely, that
the pfee should be natural, that it may be steady,
and OF easy realization.
s. The interests Of the British Governments OF
the bank OF England, aud OF the banks Of lhd coun.
Try ~ respect 10 this article. the same as the in
tercs Of The banks here-ihe imporfatlon there be
ing immense, aud the employment Of most hume
tons body OF the laboring classes, depending the
sreadlness Of prices. When they are not steady the
foreign demand FOR manufactured cotton Is reduced
greatly, the operatives are lhown out OF employment.
and the great means OF settling the balance Of trade,
without the expectation of the precious metals are
wlthdnwn-mannlaciured coltons ailotdlng by far
the most important branch of the export trade.
9. Consequently any arrangement that could be
formed, by which the article would be protected
from the effects of undue specnlaiioa and from
the depression IN the money market, aud ~ which
stcadness OF price, with currency of sale, would be
promoted, would save some oil the greatest and hes
interests in both Countries.
7. Il IS therefore proposed to form n system b,
which, with the commencement OF the new crop
advances cotton shall be made with the capita
or credit Of banks here, thereby relieving the con
slgGee IN Europe from all care consideration
I except the advantageous sale Of his stock, wbiel
would promote all the interests, aud afford genera
satisfaction on both sides OF the water, provided i
were not made the means, directly, Of undue specu
/ latiou or monopoly,
Having thus indicated the principles on which III,
proposed system must find lis Justification and has
we will now as sncclnotly as possible. detail tn