The daily crescent. [volume] ([New Orleans, La.]) 1848-1851, 1851-03-21

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Banking.
/. That the circulating banking capital of this cit
| il jmmeasurably inadequate to its commercial re
ouirements is a proposition now so generally en-
tertained, that it is difficult matter, in day.
walk, to find the least division on the subject
and none, as far as we have observed, are NOR
clamorous for its augmentation, under proper re
strictions, than many who, few months since
reviled all Banks as inherently corrupt. and rad
ically incapable of general benefit. We advert +
this change of feeling the subject with no spiri
of unkindness or exultaton, but with the simpl
view of relating a fact, alike honorable to thei
openly avowed conviction, and to their determine
ton to do all in their power to correct the evil
The stagnation in the general business of the cit,
is SO great, and the complaints so loud and univer
sal, that the few who may remain welded to thei
favorite dogma of let every man in business sim
or s,cim, according to the amount of dollars ant
cents on which his pursuits are based, must b,
driven to silence, if not to repentance, by the pres
sure Of the stupendous adverse power by which
they will find themselves environed
We are not prepared, at present, to say wha
particular system of banking will cure the evil
and adequately administer to the wants of wha
commences
if system is not devised, and put into opera
tion which will recognize, in full extent, the SUI
premacy of our rich agricultural products, and
shape its lberality accordingly, that our days o.
greatness are numbered, and our claim to any
thing above the lambs share of the progress O
the great Valley of the Mississippi, and its atien
dant wealth, a shadow without substance We
shall not stop 10 discuss the question: whether mo
ney is or is not the standard or sign of value, bu
shall proceed to- contend that it is always insepa
rably allied to agriculture and commerce, and car
never, by any human effort, be made to abun
daniy circulate where those Two essentials are no
vigorously fostered. There is no proposition more
certain of correct solution, than that which esab
fishes the fact, that where commerce exists and il
promoted, there an equal amount of capital is
always available for its every legitimate purpose
and that its price, the rate of interest exacted
for its use, is undeviatingly kept within reasona-
BILE bounds, by the extent of competition which it
rresistibly engenders The converse of the pro.
position is equally palpable, as exemplified in Our
present situation. With the diminution of our
commerce, in that exact ratio has money become
scarce and dear, and has either left us for points
where it can be more rapidly and safely invested,
been boarded up to supply the indispensable me-
ceties, at enormous rates of interest, of our too
numerous struggling business men.
Already has Charleston, by her enterprise and
dearly bought knowledge Of these facts constructed
railroad to the Tennessee River, over which
have already passed to that port, this season, from
Tennessee and Alabama, upwards of $4,000 bales
Of cotton, and the cry is still they come" That
cotton, heretofore, invariably sought this mart as
its natural market, and would have continued to
do so to this moment, notwithstanding the railroad
if superior facilities had not been afforded them
there, not only to the amount advanced on it, bu,
the long credit, over and above its probable pro.
ceeds, granted by her merchants, for return sup.
plies A Tennessee or Alabama merchant expe.
riences not the slightest difficulty now ia laying in
stock of goods in Charleston, at Philadelphia and
New York prices, on twelve months credit, his
paper bearing six per cent. interest after the ex.
piration of six months. Can he do it here, No !,
And is it to be wondered al, when the parties sell
ing can make no earthly use of the paper until its
maturity our banks combining their discounts, and
that to most limited degree, to thirty, sixty, and
ninety days, matte what amount of country paper
placed in their hands as collateral security. The
merchants of Charleston, like those of New York
and Philadelphia, can readily have such twelve
months paper discounted at their bank at the rate
Of six per cent. discount; and such is the plenty
Of money, that The banks only sorry that theil
trade disabes them from asking for more. They
need not be alarmed on that score, for already
mas the stock been subscribed TO construct roat
from Louisville to Nashville, and it requires no see
to predict what will pass over it, and where vii
De its destination. In all probability, by the exp
ration of the present year. New York will have a
road to Cairo and Mobile is reslessly alive to the
Importance of her early connection with the same
point.
We can do nothing without more banking capi-
tai. We can build no roads hold no cotton or
other produce longer than we can find purchaser
at his own price; give no credits to country mer-
chants to wean them from the superior allurements
Of the Atlantic cities I; and, in short, do nothing
but watch the chaos which our supineness is daily
exhibiting to our view. Our space forblds US from
iursuing this painful subject further in this num-
her but, as painful it is, it shall be no fault Of
ours, if it is not pa inted in all its hidden, though
whitening eoors.