The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1842-08-06

The state of affairs in Alabama is matter oil much ID
terest just The elections in that state
the inst and of the candidates are Pieugeu'o
alter the State Bank system so far as TO reeve the banks
Of the burden imposed them Tor the State expenses
and to compel unconditional and immediate resumption
tho part Of the institutions immediate hquidaton-
The five State Banks under existing laws compelled
to take each others notes deposte and in the
Of debts This absurd law obliges the well conducted
banks endorse those which not only nolvent, but
abominably msmanaged. The Branch at Mobile is in
sov ent past redemption and must go into liquidation
The Tuscaloosa Bank is scarcely any better The other
three branches consider themselves solvent and relieved
from their connection with the other concerns and the
tax to support the State government say they
The Montgomery Branch is perhaps the best, and the
Huntsville has little circulation The Decatur
Gently made partial attempt to pay. The Montgomery
board of directors recently held meeting take into
consideration the expediency ofdrawng New York
10 per cent for bank paper. This will not avail much.
Liquidation or resumption must be brought about and
that speedily The new crop of Cotton, which in some
quarters is represented promise abundance than
ecer before must upon specie basis, and conse-
quenty at low prices These low prices may give
an impulse to manufacturing abroad but the advantage
will be in favor of the continent and against England
The sound and steady specie currency of the continent
gives the manufacturers infinite advantage those
of England 1t is this fact which caused the recent
element in England on the announcement that France
had imposed duty of 90 per cent upon linen yarn That
duty with steady currency is prohbitive, and fills the
English spinners with alarm, while they look upon tariff
OF 90 per cent upon their manufactures in the United
with unconcern they think National Bank
may be established here they know that with huotua
ting paper currency tariff is fanv avail The sound
views aad sagacous policy contained in the speeches OF
the Hon. Dixon H. Lewis, of Alabama those which
and will in barG al rolic Mr.
Lewis ably and clearly shows his speech of July h
that it is to the interest Of the planters that prices should
be low and the currency steady, follows
Z" If had time could most srikngly corroborate these
views by showing the full effect Of paper expansion
cotton planting the business in which am my self en-
gagged Every rise in the price Of that great staple
port creates favorable balance of foreign exchanges
under which, still greater rise takes place the amount
currency It sad that an increase Of one cent
pound cotton is et in the price of every city lot in
Boston, because sir that RISE whenever fully established
becomes the signal fer general expansion CT bank issues
The consequences that raises the of producing
cotton even above the increased price of the article.
Hence very doubtful to whether every rise in the
price Of cotton which took place from 1888 to 1885,
not serious injury to the southern country 1t benefited
those who bought property at low prices and paid for it at
high but it greatly injured that larger class who bought
property credit at the highest prices. No could
make such property pay for itself at the high prices
of cotton for the that while only from
eight to sixteen cents negro price, from five
hundred to two thousand dollars Cotton about doubled
but property quadrupled price Sir hundreds Of
planters will tell yeu that all the property which they
ever made by raising cotton done while cotton
low Five thousand pounds of cotton at nine cents ID.
will buy negro man, when at eighteen cents ten thou
sand will be required to do it showing the singular
suit Of inability to buy the of property
with the same amount of produce when high, which
could when low. When the price of property fixed not
by the price cotton but by the amount of ua
ton, the makers of paper money buy negroes at
eighteen hundred dollars but the planter cannot.
81 was asked the other day by the Hon. Abbott Lawrence
OF Boston, at hat price could afford to make cotton
the South My answer was, that if cotton planter
out OF debt under specie currency low State taxes and
no tari that could make il proftaby at three cents
pound told HIM, it made in fact but little difference
to the price of cotton cotton regulated the price Of every
thing else. We could then compete against India cotton
and against the world But if bank paper regulated the
price of property and tariff duties regulated the cost of
consumption, could not afford to make cotton at the
present price,"
This sthe of agricultural as well all other
prosperity.
The arfbill before Congress will undoubtedly be
defeated Not so much on account of the inherent evils
of the bill itself from the pertnacy Of the COMPRESSION
al majority in retaining in the bill clause in relation to
the distribution Of the public lands modifying the Con-
gessona enactments of the session of last year. AS this
clause has connection whatever with the creation of
laws and is in fact provision diminish the
of the Treasury made qua of the passage
offs bill to the revenue may here re-enumerate
the facts in relation to it, is instance of legislative
absurdy unparalleled in the annals of country. At
the extra session of last year the law auhorsng the dis.
ribuon Of the public lands among the several States
ing under discussion, Mr.. Berran offered the foown
| amendment to the 9th section.
Provided That if at any time during the existence of
this act, there shall be imposition of duties imports
inconsistent with the provisions of the of March ID
1885, entitled AN act to modify the act of the l4th July
1892, and all the acts imposing duties imports" and
yond the rate Of duty fired by that act TO t fuenty per
eentum on The rdiue of such imports any Of them, then
the distribution prOrded in this shall be suspended and
shall continue until this its suspension shall
be removed and when removed if prevented by other
provisions of this act such distribution shall
in the House. by vote of lO7 to 95 and became law.
The present tariff bill is not only above 20 per cent
almost entirely prohibve in its general character and
will seriously diminish the customs revenue which have
been short of 900 for the last months of the pre-
sent year. Under such circumstances honest legislation
would adhere to its own enactmens but this proh
btion bill contains the following a5th section -
"Sec 49, And be it further enacted, That the proviso
to the sixth section of the act entitled An act to appropr
the proceeds of the public lands and grant pre-emp
ton rights approved September 4h lsil Re and the
| hereby is repealed"
The operation of this section would be to undo that
which done at the extra session. and to deprive the
treasury of the lands by the law which will dmi-
nsh the customs revenue by the imposition of prohbi
tive duties imports On the 18th Of July, ult Caleb
Cushing Esq., in the House, moved that this 25h section
be stricken of the tariff BILL in order the coun-
try from the disgrace of such tickle legislation well
to the passage of revenue laws by allowing the
riff to stand on its merits. He followed up the propo.
sition with train Of argument orcbly and clearly show
ing the niquiy of the proceeding, in not to be
controvered The Of the matter is thus explained
| by Mr. Cushing
There gentlemen who profess readiness and de.
termination to sacrifice the Tariff itself, rather than
accomplish the object of now repeating their mita-
tons OF the Distribution that is to say to bankrupt
the Government to dsband the Army, to dismantle the
Navy stop the action Of all the Departments and keep
the trade industry and business OF the whole country on
stretch OF distraction prostraton and agony, until the
next Congress shall come together the next President
be Chosen rather than not carry this proposed
Of one Of the fundamental conditions of the Distribution