Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1856-01-15
Fer the Enquirer
TO HENRY A. WISE.
No H.


bill OF exchange may represent an actual sale, u
consignment TO an agent or lastly, process to raise
tho wlpd or as 1t IL sometimes expressed, kae:Fy-
tHc." Where it represents bOna-tide sale, the ad-
vantage 10 the Northern purchaser Inns been pointed
out in enabling him to buy the products Of the South
on credit and without security. lie is placed in q
situation far above competition with the Southern
buyer, and Is enabled tO speculate on the capital OF the
Southern merchant, who is forced by the action of
our Banks to sell without security. a merchant from
New York writes word that he desires to make H
shipment Of Hour to Australia aud that as it will be
long voyage, and in consequence suic time
will clapsc before he realize the profits OF the
shipment, he nudestly asks our nlers here to ship
him five thousand blrrels uf four. and to draw
hin at sX months. Merchants III this city are des!-
Of entering into the same kind Of speculation,
either 10 Australia California to the Criinea. and
make similar proposition, except that they do not
venture tu susgcst longer time Tor their drafts than
four months, and aso agree IL give security for their
punctugl payment. The nome merchants propusltiop
declined most prepo.terous; but the proposition
uf the New York merchant is nj once accepted The
miller requires motley to pay for wheat, and he can
obtain il uy the discount Uf n Northern draft, pro-
vilcd he furnish hi eldorsrr for his Northern pur-
chaser, who modestly PROPOSES to speculate on his
enis. The miller here is 10 give security, not that
the NORTHERN merchant is good at the tim. the drait
ID made, bu. that he will be solvent Fix months there
after matter how nauy similar sp,culatluRs he may
be engaged in. He may know that the merchant al
the time j. in good condition, und esteemed safe and
reliable, but how is he 10 know that the Northern
merchant will be good at :hr end of six mUnthsi Ii
hc could make sale 10 Iumr mcrchunt who gave
security, he would have al opportunity daily of
knowing something OF the condition Of the merchant;
and il IN, pici"ms vf his ability were aroused, lie
could take immediate steps 10 bis debt still
further. AT least ne would avoid making further
sales the party. But il is impossible 10 pos
sess such accurate information III regard 10 persons
living 80 Tar from him. and although the New York
merchant may be tottering to his fall in blind gno.
rance our city miller, fur from seeking to secure
his debt, makes still further shipments 10 tins same
party aud draws uSan, and has his drafts cashed by
the Banks. And there be no doubt that the
New York merchant has frequently sustained BIS ere
dit and postponed the ine Ut his failure by msuns
at the further cUnsignments Of ilvur or other inrr-
chandizc, which is sold on arrival III New lorK, 10
meet some pressing demand. And at the maturity OF
the several as. they return protested for non pay.
nieut The Banks here, If ihcy eau Obtain their
money at all, are asked TO give some ef'
tension, nasmuch az the protest was entirely
unexpected, and, in any event, the cHy ana
State suffer Uss OF the ut tue articles sold and
not paid for In the case supposed thc loss IS d.
great a. though the iDur had been burnt IN the mil
ur throw into the II, on the other hand Tile
shipments are prodtuble and the New York ncrcnant
bs been uccrssfui i'll his other enterprises, he pays
the drafts aud laughs in s sleeve, at the simplicity
of his Southern friends, who hnrc furnished HIM VIII
credit that he did Not hGvn nj hoals, To carry OH
successful und brilliant speculation. And all this i
done for man who showg, by the terms OF his proposal
that hs could raise the money at home, where he
best known 10 carry out his adventure else why due
hr 10, pay the cash for what he PURCHASES Cai
there be, in the nature Of things, any more hazardou
or dangerous mode of doing business than this =
And, yet, if the manufacturers were candid, the,
would cay that such contracts ure not rure. AHi
such is the power OF the Haks, that not only are th
citizens of the South forced into cse most hazardous
engaselnents, but word ofcompaint is heard trou
them. And yet no ono can believe that they chi
have any satisfaction il continuing under 30 SrleVou
n vassalage.
Why il il that We hear Of no shipments from Rich
inund to the Crimca, md sn few to australia 1t /:
because the Banks of the South will not furnish to
cuuous and prudent Southern men, Of known ano
tried ability, good personal security, what they III
directly grant TO Northern men, who may be engaged
in The widest and most hazardous speculators. Th.
credit thus extended 10 the citizens uf New York, car
be only accounted for on the principle OF the OLD
adsgr. tina. "fu-cg coms hore lang h3'"s.'
In the case Vf Il consignment of goods to u North
ern factor, the manufacturer shipper has, III like
manner, TO furnish the security for his cUnsgDee IN
the North and here. 100, il happens that the New
York factor frequently obtains Il large portion Ut his
capital, upon which to embark in fancy stock or other
sppculG.iVns. The tobacco manufacturer Is driven u
selec. som. corsignor at the North, To whom he may
cousgu his tobacco tor sale under an agreement to
have his drafts accepted. He is driven To this be.
cause this s tho only way in which he can raise money
for the prosecution of his business by the established
course OF bauHing. He draws at four mouths and
ships his obncco. The factor accepts the bill, re.
crives the tobacco, sells H. perhaps the same day. OH
credit, and can have the notes given for the tobacco
discounted and he be in Of the funds Tor nearly
the whole four months. If The shipment we're flour he
would sell the flour for cash, and b. saved the trouble
of having the notes discounted. The factor, flush Oi
money! in truth belonging to ;be manufacturer ship
per- loans it out "cG call, or is tempted TO try his
had in fancy stocks engage in speculation III lnnd,
or entsYa IL some other mercantile adventure, using
tho len. thus furnished him by his Southern CORES
poudent. Now, if the money loaned out ION cali, ~
returned or the fancy stock operation be not bad or II
he is successful in his speculation in und, OF other
mercantils adventure, hs will be able to meet the
four months draft ut matlIry. II all these 'hinss
happen the draft is paid. aud the manufacturer IS
charged u moderate commission OF oHIy Stvsa per
cent But, if he has been unsuccessful tiB dras re-
turned protested for non-payment aid the poor ma
nuacturer is left to depore os his holly, but the e1-
actions of the Bank, thst Cnpe!s him, in order TO
raise money, to ei4pluy New lork tactor' anu
place biz property IN the hands OF an agent VINO s
too far from. him for him TO have any coghzacc VI
that agents dealings speculations In his case,
; opprr ssrr is even greater than IN the cist ol ie
shipprr to Il Northern purchaser. He has, III Ike
manner. to furnish security 10 the Bank Tor the eeiii"
ty u his agent, who, oil course. gives no security 10
him. lSnt the manufactured is absorbed IL MS busi-
nes, at holnr, connected with the purchase and ma.
uufacture of The tobacco aud tl:e management ot
bands Besides, they ar, frequently men OF small
capita engaged in this business, nnd they have not
even The sane and opportunities that, tor III
formation, the other claS. Ut larger wealth ana more
intimate acqua&;.ace ut the North possess. There
can bp 10 deubt tha, this whole large interest won
be bette. rruleced by system that would ensure
either sales al home, or 1T the places where the TO-
bucco is wanted for consumptlon-nei:hcr OF which
can hc done under the present system ot Banking
is thus nude clear how, III Of nn active mar
4, sul,. AZ bp tpbnrrD rnnU9 before the
maturing OF the drafts, that the New York agent has
the advantage of tue capital Of the South, which
capral he may use either ii paying some other DRAFT
of another perton wkiS has lnGiured or III egiti-
mate business or :Es dangerous spcculntlons above
mentioned. But, suppose the tobacco arrives III
dul! Gd Declining market and the nSen he; nstrrc
tois not 10 sell il except ut given price, these 10
structions lnay n; first be- obeyed b Us the time Tor
the maturity uf the drafts rolls around, the manu-
ucturer here knows that tho tobacco must be sold at
sacrihce or else lie must remit money 10 protect MS
draft. THEN Commences G system Of gHast-"HtHtS'
lie draws a.u;her CRAFT at four months on tue sau'c
house in New York, and has il discounted anu VIVA
the proceed. hs buys sight check at premium on
New York, which he RENTS to cover MS nrs' ~ III.
After that he Sails completely ir the power oi ms ms
f1c,or uuleas tho npacco market should uueAptccS
impravr. He withdraws all instructions 10 nls ide
tor p whose better judgment he now iH'pneHy re-
les tells the fnctor that he knows ms ,s'es' ", Ue
protected, nnd, being in New York Sei'er opp"rtI-
mites of knowing the market = Afforded, ana that he
,m,,st .rll wien thu factor thinks best. And here
srnin, is the agoa, Furnished. with the oppor.
tuui,v OF providing himself with capital to use
~ .t. h,rd times, or 70 avail himself U! furry
in in Van "sr street 10 buy stocks low o. shave
hirh The,r too, begins the process tefoTe described
OF charging extra commission OF = per cent: tor
all acceptances, being enrG hazardous and II tue
factor has been successu the drafts are honored At
maturity but if nut the manufacturer here hnds hum
self runed and instead u the factor having furnish
cd him means 10 carry on his business, and TOR which
he has felt so much indebted, that his means have
been used and nisuscd by his supposed all po~erta'
New York consignee. But, even supposing that IL"
the csse supposed of dull market, and when his Ia,
bacco is moi sold he finds that though he might stand
the losses on the sale Of the tobacco yet Ge
Of accsptanees aud premiums pa;d On Inc nix nndor.sr