The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1842-01-31

State Of Things IN Mobile Com idsnt Expectation of
the Suspension Of the Ne,o York Banks-Maiis--
Commerce.
JAMES G. BENNETT:
DEARSIR:
What there is in this place that may be any thing
like news to you or your readers, believe is con-
nected with that "root of all evil" money. Busi
ness, far this season, has been very dull plant
ers are very sparing in their purchases, although
| the sustenances of life are almost given away.
So far this year our receipts of cotton have far
exceeded those of last-last year we had something
like demand for the staple, but this year, owing
to the low rates at which manufacturers are com
PEELED to limit their agents. and to the fallacou'
idea entertained by planters that account of the
short crops, cotton must go up, as they say, to l2
cents these, and monetary causes, have reduced
business to such low ebb, that candidly believe
our merchants are scarcely making their salt. One
cause ofcotton keeping up so, is the rates
at which exchange is ruling all points; even on
New Orleans it is commanding IL per cent pre-
MUM. New York (sight) is selling at 20 per
cent; 40 day bills at Halls per cent premium, on
Boston at about the same rates. Sterling is worth
22a23 per cent prem. short time back you men
tened transaction in sterling exchange by Of
scarcely was known to our merchants until read
in your paper. Exchanges are so fuctuating, that
accuracy can be had in quotations. All the past
week the rates, before the arrival Of the northern
mail could not be taken as fair criterion for the
balance ofthe day.
One reason that helps to keep up this state of
things, is the large amount Of Alabama money in
the shape Of certificates Of deposit in the northern
markets, and the precipitancy with which 1t has
of late been forced of in your Market and sent on
here with orders to be invested In sterling ex-
change Now the more exchange rises, the higher
cotton goes still, although the planter reaps the
benefit of the rise his cotton, he will travel all
over town to inquire the price OF an article, even
if il is but few dollars worth he wants, SO as to
lie sure he does not pay the exchange on the article
he purchases. You may take any article you please
take, for instance, a northern one-and l will
defy merchant to make sale Of il to planter
who are our only customers) if to the cost Of the
article he adds the exchange.
From this very act you will at once perceive the
impossbilfy OF our merchants paying for the goods
they bought in the north the past season, and it is
generally allowed their purchases were pretty ex-
tensive. man may be ever so willing to pay his
debts, but there is no business in existence that
will warrant shave twenty per cent.
The present rates at which exchange is ruling,
look upon as a good and sufficient reason, if our
merchants are not able to discharge their northern
Liabilities. Your banks, BY loaning on Alabama
certificates OF deposit, would render some relief
by keeping those certificates out of market; but
the only of our (and the balance Of the
eountrys) getting along, will be for your banks to
suspend, and the sooner the better, as think they
will eventually be forced TO it.
You don't say if your banks are in condition to
continue specie paying the fact Of their suspend
ing, SO as to relieve the south and west, will not
inlure their standing any-Will it Things not
only here, but also in most OF the large towns,
south and west, are in such state tnat debtors
cannot pay their creditors; and the only way to
get along, will be for both to pull at the same end
Of the rope-the creditor to help and encourage
the debtor, and vice versa.
You may think the suspension OF your banks q
very bad argument-[so we debut see no other
resource for it is certain our own banks never will
pay specie; and rather than the Populace should
undertake to force them (Which | think will be
done unless things take turn for the better very
shortly J. for one, would prefer the suspension Of
your banks. mo doubt Of it'll The planters are
Their provisions cost them-Bacon about 3a3a cts
round; mess pork, Sc 5Oa$7; mess b. Of s4a4 So
flour, SIS g. They are in fact getting the above
articles for less than they cost in New Orleans.
letting alone the freight and expenses from there
here.
One of ysur eastern correspondents, some time
back, was making inquiries about the steamboat
M. Y. Beach, asking where she was, what, do
then that the steamboat M. Y. Beach and the Mon
mouth Uhe cognomen under which she arriv ed
here two days back) are one and the same. She is
now called the Monmouth, and has been % days
getting here from New York. She broke her shaft
when day out from Tampa Bay and has been
worked from there by hand.
The United States mail boat, carrying the mail
from here to Stockton, was run into on Saturday,
so that | think it doubtful whether the last two
Gays mail have yet left Mobile or If left have
rived at Stockton in time to continue North. This
morning, however, being on the wharf, saw the
great Northern mail thrown ashore from couple
Of row boats, in which il had been transported
from Stockton, and conclude that the mail bags
from here North will be transported by the same
conveyance for short time. Hereis transaction
for the Postmaster General to look at!-the United
States mail carried in row boats for thirty miles
because the contractor has not another boat TO put
in the place Of the one run into. The mails be-
tween this and New Orleans have lately been ir-
regular, owing to one of the boats the Creole) be-
ing ashore for the past week, and believe is now
in the same situation.
1t is useless to tell you Of the great circulation
your paper has here, for yeur subscription list tells
the necessary tale. Mobile never looked duller
than it does now, aEd the Northern mail is every
day looked for with great anxiety by everv one
Your monetary articles and quotations OF exchange
are looked up to with great deal OF confidence,
and as long as you pursue you present course ysur
paper will always be read with the same avidity II
now is-nonc the less for what interested parties
may say to the contrary.
i had almost forgot TO mention one cause, and the
principal one, of the low price Of produce in this
market. IT, Now Orleans, there being no demand
whatever, the principal merchants (Western) Of
that city have been forcing on this market all pro.
duce they ceuld lay their hands upon they nave
kept their heads above water there as long pos
sible, and one great help to them for time the
Mobile market; now, however, they have been
forced TO suspend, Gas you will have heard from
some Of your correspondents in that city, having
borrowed from the banks long as they possibly
could. The fact OF their stoppage will at once be-
come apparent, and as less produce will be forced
on this market merchants look forward with little
more confidence for the balance Of the business
season.
Brother Johnson, from Bosting, is here business
temperance-may dr"p You liue on it. :,
Hartford
Correspondence Of the HeradJ
HARTFORD, Jan. ~ 1912.