The Camden weekly journal. [volume] (Camden, South-Carolina) 1853-1861, 1854-03-07
Scarcity of Money.

The continued stringency of the money
market. which had its commencement in the
Fall, and continued down to the end of Febru-
The arrival of the cotton crop at market gen.
orally relieves pressure that arises from 9TH
e- causes than the deficiency of the quantity
for sale and shipment. There are several
causes for this unusual state Of affairs.
/. The difference in the receipt Of upland
cotton this season, from the lst of September
to the 24th Of February, rs compared with the
corresponding period of last season, is 29, ,42O
bales, against 1854, which, allowing for the
higher relative price this season, makes dfte-
renee in the value of about one million OF dol
lars. There is little difference in the compa-
rative exports of sea island cotton and rice to
affect the general result The effect is obvi.
ous for this deficiency causing scarcity OF
funds. This falling of is aggravated by much
greater difference in the amount exported
g There is apprehension of war, which
disposes capitalists to more than usual caution.
Banks are under like influence. They a.
bridge accommodation, from an underlined fear
of the consequences.
3. There is in the establishment of new
banks, an influential cause for the scarcity OF
money. Until they arc organized and in op-
Grafton, the effect, Of course, is to lock up
funds which are distributed by the older banks
through the accustomed channels The Cir
cumstance itself, that parties who have sub
scribed to the new stock are preparing the
means of paying their instalments, tends to the
contraction of the currency. These install
ments when paid in, 60 into the other banks on
deposits, that differ from individual deposits,
which, to certain extent, admit OF being cm-
ployed in banking. Let us suppose that, while
other causes of pecunary pressure exist, three
or four hundred thousand dollars arc with
drawn from the general circulation, and re-
main IS dead capital for two or three months.
We are speaking of course, of the interval be-
tween the calling in of instalments and the
period at which they find their way back to
the community in loans and discounts. If
these periods were always co.incident in time
If money is paid into banks nearly as rapid
ly as it is paid out-there could be no public
Inconvenience But as this is impossible in
the organization ofnew banks, the operation of
locking up funds is similar in its consequences
to the payment of large sums in duties, until
they flow out again in government expendI.
lures.
4. We think something is always attribu-
table, in aggravating the existing pressure, to
the high price of money in some of the North,
ern cities, which has attracted capital in this
form from the South. individuals, as well per-
haps as banks, have been not able to resist the
temptation of placing their funds in New York
where they have for some time past obtained
from IL to Is per cent per annum.
Under these circumstances, we doubt the
wisdom of that policy which adds three mil.
lions of bank capital to that already existing
here. The effect must be, if there is no cor
responding increase of trade to absorb it, that
II will augment the rrrrnnr,.. of III ivy, cum
pared with other places, and relatively njure
its commerce. 1t will make dear market
in which to purchase, but an advantageous one
in which to SELL The produce that finds its
way here for expectation will bear a higher
price than similar produce in other and neigh
boring cities. The effect will be to divert the
trade from Charleston. Either this must be
the effect, or the new banks will not be able
to make dividends for their stockholders.
In addition to this Inconvenience, such To-
cal increase Of currency will aggravate the
evil, already sufficiently great, Of an advance
in the price of provisions house rent, necessa.
ry labor-such as negro hire-n common with
articles of mere convenience and luxury. While
all such local increase is relative greater than
other places competing with Charleston, and
tends to diminish our population, or to check
its augmentation, it, by adding to the charges
on commerce, by the premium Oh exchange,
has also a tendency to diminish our foreign
trade.-Erening News.