Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1852-12-17

IDGRECr TRADE ITs VALUE To THE BUSINESS

AE.N or VIRGINIA..
We h;n that few cl l. business men cl our State hIy
akcn the trouble examine Thoroughly the important beaI
n"s which dirccrcs o intercourse with Europe mns exer
upon the future prospects OF trade.
Credit is important ccfien in commerce. and hy III
use OF it, in its prac!c. form the merchants Of ii;
Northern cities have been enabled 10 secure 10 ticmscive
The ccm':c!ot the business .! anGst TIC en. county.
is not an uninercsiu: i1c that the basis oi their credit
fix! upon their distributing business 10 The Sonh "
Have suwn in former articles tina. ,c zeal ubstdHc. Of III
Exchanges Of The country dependant mainly upon III
Cotton ana Tobacco CROPS Of the Southern States and tn
position that ASSUME, tina. :hci, credit also jer;"a
bic from them, may tie first view, be somewhat sa:p:s
ing. An ns!rali1 however will make apparent 10 Onj
one the rnih Of the assumption.
| The merchants Of the city Of Richmond deal principals
with New York ,eY, perhaps, deem themselves dependan
upon their punc'uaiy for ,r future supplies This pnnc'n
aiy forms ticir ctcdi-n this credit their capital in bnsi
ncss-but let examine how the transactions malc.-
| They follows:
Purchases made credit of six or eight months-
the goods delivered and acccptances of the
ciasers given for the The Iobbng merchant
The importer the may has also make
FOR his future supply lie takes the very acccptances
Richmond merchants places ihcm in the hands Of
banking, brCkcrinn commercial hOs. that has
pJndence for that purpose in Europe and asks for letter
credit in France Germany Eng!ani Upon The coliat
cra security thus deposited the letter is issued No money
passes An order is manufacturer in any either
these countries IL execuieta and the goods forwarded Il
the end Of the term agreed upon the house Europe draws
fr the payment Of it's advances upon this letter o credit
sixty days sight These drafts generally made senia
nunl y-and comni= OF two per cent according
of agreement, is charged for the business Al
.Ir.C, ,t,, kopi hnna
in New York, which hos issued the letter Of ctc! is
ready discount freely other Southern paper which has
four or six months run provided it is TO mature in The
tobacco season. that funds may, by this means
be placed in the South discount for the purchase OF their
products thus IL is seen, that The credit or The rcpcscn
alton of credit in form of notes acceptance of tho
Southern merchant absolutely forms the basis upon which
letters of credit in Europe are opened lof the Northern hf-
chases That second operation OF discount in the North
en exchange gives the additional advantage OF cheap"nng
down tue purchases themselves by emtances 10 meet
their letters reduced ra.c, and further advantage OF
the value OF exchange of least nine per cent. upon tic
bills drawn upon the Southern products.
Now let change the operation Suppose that have,
b. line, rapid and sure communication with Eu'
rope Our Richmond merchants hypotheca,e the paper
which they from their customers in the same manner
as the Northern merchants have done lcrs. letter Of
land there will be plenty oi them whenever steam
line is iormci) 4 running six months account Is kept
At the expiration OF that time, sixty days draft is
drawn. Their business panc having ii9c months TO run,
as readily taken with the interest oil To meet II here
as il would be at tie North: and thus the and
half per cent exchange is sayed,the importing prot oi
fnn Is 10 25 per is saved the pro!i on foreign en-
change saved and is therefore, apparent that from ~
"a ncr cent in these various transactions Is saved 10 Inc
Southern merchants o. if hy choose to io7ero ihI
advantages and give them the consumers, TIA! lh!S
saved 10 them Our iarmars, tradesmen and nuoFcrs
would in that nearly onciri of the cost oil their
expcndl,ui:s for coIhug and oe. necessaas of foreign
production l. this sufficient, sensible, tangible
reas.a in- iirr of from waters Is not ti'
fact, haI 0ur merchants dependant and BY this means
NAV become independent, argument strong eEoGgh To
reuse every one Of them throughout the length and breadth o
Virginia 70 action sustain this proposed steam line 10
Belgium We ask tie question; and wc know that there can
be no othc. united of ys from eVcry merchant
capatg 9f understanding his own Interest
Mrssrs II D. & a. T. Beach propose 10 commence on
Saturday rcxt lie publication of Of the most expensive
aud valuable illustrated newspapers ever contemplated IN
;his county The prospectus will be found in another col
nnn Mr. r. d. Barnum is special partner in the enter
prise.