Camden journal. [volume] (Camden, South-Carolina) 1852-1852, 1852-03-12
CottOn-NOw the Market is Control
led.

led.
A late number of the New York National
Democrat, contains an article upon the Cotton
trade setting forth views which strike US as
sensible and true. The writer is evidently well
acquainted with the whole machinery Of the trade
and we will endeavor to state his positions. The
system of advances on crops" so common, in
nearly similar form, in this country, in the
means by which, in the end, British capitalists
are enabled to WELD the influence which ecvates
or depresses the price of the staple. The agents
of English bankers make Advances on bills OF
lading for cotton sent to their houses in Liver
pool to be sold there on account OF the American
shippers; that these advances seldom exceed sew
enty-five per cent. of the American price, and
that the sums to make those advances of B1t-
ish capital, but upon bills Of exchange so drawn
that the cotton will have reached Liverpool, and
nay be sold there before the bills mature, so that
he funds to make the payment on these bills OF
exchange are derived from the sale of American
cotton, instead of being advanced by the Brit
ish bankers.
The writer has compiled table from stats
tics of the cotton trade, giving the amount sold
in the Liverpool market to the trade; the amount
sold for expectation, and the average price du-
ring each quarter. 1t will be seen that instead
of retaining the cotton crop here to be sold to
the trade, at American prices, we send to Liver
pool that which is consumed on the continent as
we'll as that which is consumed in England, and
giving us the use of British capital, these British
bankers compel us to advance our capital, and
to run all the risk of the British market And
what is most extraordinary, is that they have so
arranged the machinery Of commerce, that we
are not only compelled to lend them our capital
on their bills Of exchange, by the use of which
they send our cotton to their market, but they
obtain an exclusive control over our cotton in
that market, so as to enable them to regulate
the price; and the table shows that they have so
used that control that the price almost invariably
rules at lower rate during the months of A
pril, May and June-the time at which the
greater part of the bills of exchange fall due.
Let the planter examine these facts. Does
he believe that the price of cotton would rule so
low, or huctate so much, if it were sold IN
New York, Charleston, or Savannah, or Mobile,
or New Orleans, instead of Lverpool' And does
he not see that the British Bankers, by an a.
droit use Of British credit, obtain the use of our
capital to place in Liverpool the cotton con-
sumed in England? And does he not see that
this use of British credit gives large profits to
the British Banker, at the expense OF the
Boston manufacturer as well as the cost of the
Southern produccl.
Who that has noted the effect on our cur
rency does not know that, it is the policy OF
these British Bankers so to regulate exchange,
that they always made profit by drawing up
on London, and does the planter not know that
the British Banker is directly interested in redu-
cling the price Of cotton in the British mark
cts? When the price is low, it gives greater
profit to the manufacturer and greater activity
to British commerce, and enhances the value of
British credit, by enabling these Bankers to sell
their exchange at higher rate.
But why should we send our cotton to Liver
pool in search of market, and place it there un-
der the hammer of a British auctioneer, subject
to the control of British Bankers, when we know
that if we would retain it in our own market the
manufacturer would be compelled to come here
and buy at American prices! Why should we
pay toll at Liverpool in the shape Of profits on
exchange and commissions, storage, and sundry
other charges, for the cotton consumed on the
continent Of Europe? Why do We permit the
British Banker by the use of his credit, to con-
troll our capital and regulate the price of our cot
ton Upon what does the credit of these British
Bankers rest, that they are enabled to lend it
to us at such usurious rates of interest 1t is
made up chiefly of expenditures made by Euro
pean nations in wars, and in the support of ar
mics and navies, and privileged persons, which
have accumulated in the shape of q funded debt,
enables the holders Of that debt to tax the Eu-
ropean nations to pay the interest, which inter-
est is dead weight upon the productive indus
try of their laborDg population.
The funded debt of nine Of the principal
European powers in 1912 belgium Denmark,
Holland, France, Portugal, Prussia, Spain and
Great Brittain,) was 5,95o,o7o,45o. By COM
putting the interest it will be seen that the annu-
al accruing interest is more than two hundred
and twenty millions of dollars-the greater part
of this is payable in London; and it will be seen
that as the interest due by the continental pow
ers must be RENTED semi-annually to London,
the control of that fund enables these bankers to
so regulate the continental exchanges, as to rem
der money of greater value in London than
elsewhere-and every one who has noted the
operations of the Bank of England, knows that
that Bank acts as the great regulator, compel
| ling the precious metals to move to London, or
permitting it to flow out as it may be for their
| interest.
These are startling facts and deserve the pro-
oundest investigation. 1t is the part of wisdom to
provide a remedy.-NaskvilIe Au,eTfcau