Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1840-02-17

will now make few ter,arks on the preceding
description OF revulson produced by n nuciuaon
athe price Of eaton and. fra Is TO be re mar ed
that the price Of cotton Ia re gniaied bv tie foresp
uarkei, and, consequently. is independent or our
banking system. The latter. therefore, could MT
by its scion have generated those liel, prices which,
the cause of the specutstion. The only mate
3lal iohuence which our banking system ean exert
Nm the price Of cotisn. must consist in the rsciIi-
ies offered TO the great commission and cxportpg
,nerchants--and Ibis must be acknowledged 10 DO
most saln'ary one. In every great agricultural
country The important nj the year xre,Isosr
when the crops are brought forward Cor sale. and
foreign goods a'c imported. Al those scasntls, nm
expanded currency is required, while, at orlIers
contracted one will answer. ffe
Tie best system then. ior such purposes, fmust
be that will admit Of expansion and contraction
10 suit the times. The banking system, T II viii
only eapfne ITSELF prineipally. 10 business paper or
shor dates answers bes the condition Of ne pyo.
bem. II cnnblcs that highly important mercantile
agency. whicl, must come between the farmer and
the plnnier on the one side. and The manufacturer
and consumer on The other. 10 prfbtm its fnncten,
in the cheapest and most efIcaoions ,s,anner therebv
cnablinr II hand over the producer the l,vp.s,
possible portion Of lhni rice which . realized in IA,
foreign market. II is very true that Without the
banks, This agency must and would exist. but IL /,
demonsrahlc thai although The crc, syste m womb
he equal, extended as before. yet would this AMEN
ey be performed in more clumsy and c.s,i " man
ncr. and M price would not BIO altered in Europe
The whole additional east mus. come om Of ,hs
pocket OF the producer, and thus form a dcduclon
from his nett revenue.
will now, sir, cndravour 10 point ont Soma pccu
arilies in the cotton business. winch make reyuT
sons IN our country more disastrous than In u,ost
others. think If those pecnlisities were more a.,
tended TO- that much ulster views would be formed
Of the comparative character Of banking sys,e,n
And, FIRST ! will call Your affection 10 The effect
produced by The fact. that large portion of our
exports consists ot one single alicie (coiton.l If
the value Of our exports was divided more equally
over great variety OF commodities. there won be
scarcely n possibility Of u sudden reynlson in IN.
prices Of all ut any one time. and change taking
place IN the prices OF one or more. would not be.
likely 10 produce great national coaeHisioH. Tho
reyulsons In trade wond be more PARTIAL and ouck.
~ recovered toni. But On every great change ia
the pice OF so important staple cotton. YOU ase
great danger OF n general CRISIS. Another pecu-
laiiiy. pregnant With most important consequences
IL the fact, that this COMMODITY produce, Il alone
in one great territorial division Of our Union and
that in that division, in the season Of prosperity,
IL IL almost tho only Article produced You will see.
nj once that II a commodity. equally valuable IN
The aggrcgdic, we're raised ndiscrmiuaely. al over
the Union, the fluctuations IN lis pilee would not
produce any thing like the same disastrous conse- Z
anencrs. speculation AMI revision IN III. cotton 4
business, II may compare great thing with litu
one would be more like The tnorns nnicauIis hun,-
bug; il would be divided among too many 10 have
very concentrated and powerful effect. The man
Of wealth, who has embarked few hundred dol
lars in norus is not much Injured by its loss So
IL the farmers, hronghoni the Union, only bad cot
Ton patches, ~ Vifginans have, reynIsion in iha
business would not bring such deed distress on
ihr country But an immense crop OF cotton Is made
in the South alone, hence every tiadc and profess
sion aud form Of credit, IN that whole region must
be tirecly or indirectly connected with thus great
bu sinrss. When lands aud negroes are there
boue ht on credit, is upon the faith Of the s,pse-
onrni cotton crop. When lhr merchants import.
goods from New York aud Phi ,d.lpbia, on credit,
il Is done on the basis, for their dealers are
planters. The whole superslfnc,ise Of private ere
dit /. built upon the same foundation; and ii is inn
possible for the banking system, in such country.
To do business otherwise than upon tho security Of
the same great occupnon. Under such circum-
STAGES ss these, 1t is impossible. IN the nature Of
things but that the first great depression in the ~ ice
Of cotton must produce deep distress throughout
this whole region Scarcely any profession can
cape il. Bank credit, like all others. u course
sustain n shock. and as these institutions are the
most prominent portion Of the credit system, aud
form the most visible links in the connection between
the credit system Of the cotton country and other
pariibns Of the Union. those who look at events
periciays will ascrbe the blame 10 them; which
H. 10 fact, due 10 the nnutabo Laws OF trade, and
the unvaryng nature OF man.
,u, let see n lille farther how thr distress Of
the cotton country becomes greatly augmented, by
the fact, that cotton is almost The only article pro-
,lneed by each planter. nd 10 this end, wl COM.
pare together the cases Of two farmers-one who,
raises breadsipf'. and the other cotton in order.
that we may SEQ the great difference between their
condition in u sudden fall Of prices In the case of
the grower OF biealsuls. lie supplies, iioin his
farm the principal parl Of the wears expenditure :;
he feeds his abotets, aud, 10 agfeat extent. coihos-
them from the farm and these are the heaviest t.
TENS in the COS, Of production. With the grower
of bfcatis,uls. The maxim to BIZ to make AZ
much within himself as possible hence what he
sells is n surplus winch is alulosi all nett profI.--
Now suppose sudden fall In hreadslntts II the
farmer be not in deb,, lie may br much Distress
I'd, for az 10 that portion consumed on The farm.
he receives injury, his only irjuIy then, will he
a dnlinution oi his nett revenue. Take ihs
case of the Gotten grower WHEN cotton sells vefy
hic b. lie will make scarcely any thing else, for
hing Yields him 81 high a profit rs cotton. All
that he ascs lie Sells all that he consumes lie buys.
His nett revenue Is the turner minus the latter.-
Suppose the prlce of cnttoD suddenly go down, aud
you have a widely d iletent fiOm that Of thu
grower Of bread stnffs-no only may the Iiantsr
lose his whole nett rcvcnne. bni the expeDd tnre
side may suddenly hccome greater than The proda-
cisg. aud thus the planter be brought in debt. when
he is least able bearat; and remember the price
Of necessities viii not Immediately fall with The
p ice OF cotton. but ~ ise in colon produces y
rise in oer commodities Of this country erudHasfys
~ fall in cotton will 10 produce int,Redsdtsly the
reverse effect Ii. then, in the description which
have given o The pecuuriIies Of our trade 10 cor
rect lhink it must be ADMITTED. that coin,aerciab
revu,lons may generally be expected 10 operate