Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1839-09-12

community. For banks 10 advance post
noles upon our cotton. would he literally
taking trash. and avowchly circulating
their credit rs the measure Of value.
Ifit were not for The Iiigh names attach
ed To the Circular, we wouIl he induced
TO believe, tina, it proposes scheme hy
Which the banks are 10 get control of the
coming crop, to enable them to sustain
themselves. We know that the imporla-
rinns have heen very heavy in The last year
and the bonded debts of corporations are
beyond any accurate estimate. The
different States cannol owe less Than SlSJ,
600. .0OO, borrowed in different forms, from
Europe, 10 enable them to prosecute their
gigantic schemes of visionary and profit
gate, as well rs useful Improvements. AN
this, connected with the commercial debt,
is well calculated to create heavy balances
against US. In January, 1887, the bank
circulation Of the U. S. was : ii. 10000 ,OOO.
Suspension took place l2thMay, following
and resumption in something more Than a
year after But it is remarkable, at the
resumption, how little The general prices
| of every thing were effected, except wild
lands of the West. Now, ifthere had been
a sound resumption, and contraction oil pa
per issues, to real conrcrtiblc 1"pcr, prices
ought to have fallen greatly. lfiherc had.
hcen a great contraction nI the circulation
to n sound basis, ii would have produced
that effect for 4 lime. The truth is, that
circulation has not been greatly contracted
Itmay have assumed different forms. AS
many aux bills may not be in circulation,
bul domestic bills have vastly increased, and
banks do their business now in exchanges.
Credit responsibilities are not now much
below what they were in January. 1897.
Undcrihrsr circumstances, il will he dbl
Gculr for those banks that have advanced
largely. and vcntured into Ihc field of spec
uation, either in exchanges or produce,
10 sustain themselves, unless they can gel
control of the coming cotton crop. 1t will
be To them a substitute for specie, and Gu
able them TO do business upon credit anil
produce, instead ofconlinins themselves to
The legitimate objects Of commercial bank
ing. We all know the vast power of cut
ton during The last suspension, and it was
that, and that alone, which enabled us to
resume as soon as we did. The bank of
the U. State. Immediately after suspen-
sion, issued bonds for more than S3,O w.
600. payable in London, twelve mon'hs
after date, and sold them in New York, at
twelve and half per cent. for remi,'ances
to England. 1t then came into the South
and Sou,h-Wesi, and sold its bills al
preninm of 10 per cent. f1r The local cur
renew. Their hfis were thus bought for
rcmttanccs ,o the North. The bank then
look the local currency of the cotton states.
and purchased coIron at 3 and cents, IN
the summer of 1887. This they may not
have done ms bank, but it is shameless
imputlence to say they did r'' use aS MS
for this purpose, and did tht dir Iy
which they dared not 70 direcrl.. |, wHs
with this cotton the Bank was enabled 10
meet their bonds RAINING 10 maturity IN
London. Aud but for this operation, that
bank could never have resumed .,hcn Il
did, if al all. / will nj pre- end To say
wha, has been made H. net .roi W The
bank, but it was tn" op"~atinu that gaze
i, resources equivalent to specie. | think
its foreign bonds amounted to ncarS7, ,OO0,-
600. which were sold al a premium OF ia
per cent. If this be dew" pmpn he
,owc, and resources of cotton over The
currency and banking operations of this
country, then those whose labor produces
it, ought to have its full benefit, aud they
will be guilty of stupid iolly, II they ever
a.ain prrmr themselves 10 be on'witted
by E,reign institution, commanding tn
resources which Col and Nature ave 10
them. Any combination i the banks as
proposed by the Circular, "ould lne>''a
blv result throwing The resources "i COT
ton finally int" the hands of the gigantic
stock interest of The North. hose "a Ks IN
theSoulh. {Gnr instance in Charleston, )that
honestly desired to confnc themselves +"
the legitimate ohjccts OF commercial hank
inc would not enter he arr semcnl,
and the result would be, that specializing
banks would he u ch win Northern funds,
precisely as they hr been used in Nl'ss's-
Ia