Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1856-01-11

,, =; il IN snr. n,,r. or other, predict that the
Nr.:r",l pc,pl" Wi. ha in the mos! drp"fah'r S'!""
ton il possible 20 conceive There If another
hardship To which this debtor is liable, II he should
,ut he arle tn furnish the produce, or, wnch Is some
times the case, il II is sacrificed in the sae D! II u ts
time tho draft becomes due whereby II IS prottsIeu
fnr want OF funds it returns upon INN win the Ndul
| ti.ual cori ui per cent. for non-paymcnt. No"
NY tins il what meant b. domestic bills Ut exchange
disguised rs loln. To take more than -'x per cent
10. mark, Mr. Speaker, the bunk does not purchase
hill of exchanged by paying our cash for It and rece'
ur ths usual rate o. exchange, which yhrie. from one
quarter 10 one per CENT but il merely delivers up lac
poor debtors note which was previously in oank ana
what is worse. rst as well secured as the domestic
hill of exchange which they thus extoft from nm ID
lieu thereof. And while they are thus exactlig tnis
n.r cent from him. ;hcy are di,countns bills for
others not in debt 20 them for the Usual premium Oh
ono per cent. The whole scene seoIHs I" Prese'I tne
;ci,,r, of helpless suffer-. il the hands 4. rhiilan
who claims the merit of charity for di.charclnS he
victim alive :,ier having torn away hait Els !1'7
from hi. body. ,
Ter of the Bank of the United SaIcs, Of the great
nDicc,lvus to the Bank was founded in their mode o
,Iiscountng bills of exchange and II was lohuy
hoped thci, with that Bunk, TINS injurious system o.
mink iur would cease. But this effect has been LOOK
.j f,r in vain Il will be seen that the Sato Banks
have continued To pursue this same systcm "l osnk,
ing, by giving preference I'd NnrherN drafts ana
thus pcrpcualiIg the rassn!aSG oi Inc Sulti' True
IL i, that the Banks here have not pracced The !hlne
rate Of Discount in ca4hins Enr;hern drafts; but they
t..rk that they make more by giving accommodation
On this kind Of paper, and, therefore, in part is the
system continued here. While they make less, the
charge on tho borrowers is the in otr csCcta,
and The picture drawn by Mr.. Clayton has some re-
senbemcc to what sometimes Orcurs here.
But this is by means the least evil 10 the South
from this system Of banking. The other effects are
far more disastrous Such are the great OF
the South and West that perhaps higher than the
legal rate u interest could be paid in order 10 insure
their development. The great effect of this policy
was to turn the current OF trade from the South tn
the North and to destroy all hopes Of direct foreign
trade with aud from the Southern cities. Cunvcn-
lions inter conventions have assembled in the South
fo the purpose oI encouraging and fostering this di.
rect foreign trade. They have assembled. passed
resolutions that the South ''ought' Ia establish this
trade, and that the people OF the SnutI "on|lt Ia
encourage the direct Importer, and that they Ought
| nor 10 purchase If tho North or of merchants who
buy their good. at The N"rth any thing that they can
ger rs cheap from the direct foreign importer Al!
| this is dressed up in high sounding phrases and
eloquent dciion orations and essays are published
and scattered Ike autumnal leaves over the South
but no. or at best but little change is made. 1t is
true great effect has resulted from the development
produced by the canal rail road, and other improved
means Of of internal communication; and by the near
approach to tho completion of our Southern system
OF internal improvements the South can s"un be IN
situation To expect change greatly Ia her Interest,"
But yet, every mile Of ra road aud canal made a;
the South cn,res. least in part to the grea, Empire
City OF New York, for the development "f her trute,
the Increase of her population, and the n-graniiHe-
mcnt Of the already bloaed weah of her citiz"ns.-
Why and how is ths II il great question: and
should be approached with all the soeinnity due TO
question the proper solution OF which depends.
not the S-ucs uf life and death TO an individual, but
the far important issues of life or death to South
cru commerce., the wealth, prosperity and happiness
of large section of the Union. 1t may perhaps, and
probably will, happen that the South will he so
ghced by the increased resources brought out
by her system of Internal improvements 80 soon 10
cod l,ly..S Sun aid hH
Giant strength burst like pack thread the cords
with hch the phstines have bound her, aud remove
fon herself the incubus Of n banking system which
has hitherto depressed her energies ana prevented
her urugrc-s. But there be little hesitation III
saving that hitherto the grcat of the depression
of the South her inability sustain foreign direct
trade and 10 establish profitable system OF lnanuac-
lures Gun be found in the system Of banking engratt-
ed on the country by the old Bank of the United
States and since practiced by the State Banks, OF EN-
ployng the funds of the Banks in cushing Northern
drafts in preference to good home paper.
4 glance at the efforts made at the South in manu-
facturs- and their Of SUCCESS, VIII rst be tH-
ken. We have many advantages over the North IN
manufactures. In the cheapncss OF our lands ana WA
ter bower in labor, and, in many departments ut mn
uutacturcs The raw material Is also rieaper' lIs
particularly true Of cotton. Many enterprises nave
bern started at the South 10 develop her nanuiac-
lures. Capital has been hona-tde subscribed and
actually mid. The best and most skiIitui agents
hay, been emlovci, and, after few years expert
.nce tho same CRY oi want Of success Is repeated
and rrt-rl,r;sr becomes chilled and rI.ss. we lind
tina, during the first years OF their existence tIiey
obtain money for the rGnsacii" .; their ous.le'a ny
drafts OH Northern houses, Negotiated through oar
Su.l;hrri In.ks. Ii may DC proper 10 make inc su3
rct ccircr nymturing here ln!v some detail, Us me
process da.crhr,. i'll this will be applicable 10 other
business of similar nature Let us take Tor ,iius-
tra,lvn, cotton manufacturing company, located IN
;i:c c!ty q. hlcLG0Gd. Capuni stock has been PAID
:c !:.l, iousc HEd machinery PAID iur ana ths ht-
u agents secdfed. Beside this sin!. c.pi:a III al
ri il r-lHI.d 10 carry the business Of the
pany Large supplies Of cu.:on are purchased; TITS
cotton Is manufacture mo Goth the cotton has
20 be paid ,l, aud IL d. this The asCn; has 10 rasp
tho MONEY by sales nj his yarns aud manufactured
cloths. He Offers them for eue, lad h. Ends that
they Gd,nit OF READY ss!o 10 customers at home upon
the usua credits. He would BE- satisfied with the
proii;s o. the business, provided e have the bills
receivable converted iato cash by the Banks. He
presents his bilis receivable - tbc Banks, and fluids
that they are discounted To but n limited extent Ii
is nvcrs sary for him raise still larger sum o!
ncy Finding us bills receivable not equ!va snt to
money, he eGdearufs IL procure money by iurhcr
arrangements nj home. lie ends be can only Sell ms
good. at profit by taking paper ut ion" duties IN
payment. This doe. not Answer .s purpose. link
ill.,, that 10 may effect his Object by calling upon
some large wholesale house IA tue ciiy, he proposes
10 him 10 nuke iontiEnnsnt OF his goods ioF saie'
and asks IN sivlace in ready money. The ~hoo-
sale merchant rrpiee thut be cannot hdvnnco Tile
lnouoy out of ills 1usiucss, but iat nc vii! accept
their drafts al f,.c months, to 10 Reimbursed !o!n
The proceeds T. sale 10 DC nGCC Oh roJas EoH-
signed lie presents four ~ n;hs draft, acct %
hi corsi.ncc IT. Rriiu.ui,d, for amour; sufficient
nr the buGinrss Of h's establishment, las the draft
endorsed for ndd''oHe! pro.sc''gTi ana c %
signs his goods agreed on. me next DAY
h. presents himself ut the Bank nnd the Die
count Clerk, w,'b his most fascinating smile, Eands
him back Tie paper, and IN the m3st polite 'rhnIsr
ufnr,ns him that the Boar! did Lot discount ii. IL:
finds, however That by making agreement With
a house in New York, TO colscn to him the goods
manufactured That the New York consicnc" Will ac-
crpt drafts, ard, what Is more to the purpose The
Northern drafts will be discounted by the banks
here aud h. obtain money for the prosecution o Gls
business Bat ihi. done, and th- City OF Richmond
loses Que of the chief advantages resulting from the
establishment oI the mandatory The commissions
on the sales Of the goods nre lost to the Ciiy ana en-
ure TO the benefit of the New York c"nsiEnce. But
the III effect by means stops there: In little time
some change takes place III the Ne" / orh money |
market, and lu goods consigned, are sola OIL NJ
sacrifice 10 meet the acceptance al the New io:A
merchant The agent here may protest against II
But in van Tn- only mod" ut protecting h' S"nd2
is 10 reni, money the North IN protect his dratr
and that he knows to be impossible. Ihc goods are
then sacrificed. 1t is then found out that goods MA
nufnrtured in Richmond, after being sent u New
York and paying freight, insurance anu commissions
can be bought cheaper in New York. than az the ms
nulac;ory. This has actually been done III hundreds
or Thousands of instances IN this city Now com,
,nec.s the fret step in the downward progress "i
IN. nnnuIac,ory The business must be carried ON
money must be raised, and drafts Gnd cons'S"Inen's
of goods must be the instruments OF raising money
TO carry OH business. Sacrifice upon sacrifice con
tnue., and, perhaps, about this tlne' the 'nahu,acT
nv here j. informed that the cOsgnce does not think
it altogether safe accept their paper for such large
amounts. mud that the business bcins hazardous
q commission Of =, per centam must be charged
upon each acceptance. Business continues TOR Il time
onrer but stockholders hear OF no prospects OF III.
vitIsnds and eventually the whole property il sod
out for less than the debts Of the company. THIS
ruin of the company and loss 10 the city, ~ Illus clear
! mad. Di he
manufacturing business at the mercy OF Il New ork
accrp,or. And all this is done i"r the purpose
OF mixing little premium on exchanges, and be
cause of the old directors think this mode OF