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

houses the city for tho storage of consigned tobar
or Hour manufactured aere Tho stores that siIou
| property be here are erected in New York The cit
loses all the profits OF storage, insurance AMI com
mission sales, mad they Mi euure 10 the benefit
the trade aud wealth OF New York. Seeing this to
I'D. state of things here, meu of enterprise who coul
not p obably when they left Richmond have borrow
| ed from our banks here, five thousand dollars hav
| removed 10 the Northern cities. BY pursuing u eau
tous policy and building up their credltn avery shor
time, these very men have paper drawn upon thel
and discounted by the same bank: here on III
strength OF their names for immense sums.
BUT the evil Of this system does not by any mean
stop here. Mnuy OF the branches of manufacture
that could be prontaby Carried III AZ the South ar
ot n character TINT Goes not admit of their bein
| shipped to the North. These have to be neglecte
entirely or else led in feeble inanuer lfth
banking system were changed, the low neglected all
aneGisln1 interest would spring into new life AM
vigur, giving to labor aud skill adequate employ
| meut and recompensc aud adding greatly 10 the mu
tcrial Development Ot our country.
But what shall we say III regard 10 that class q
| merchants who cors:iuts the larger portion of til,
mercantile interests ot every ciiy-tlie commission
merchant who receives the crops of The farmer 10 bt
sold Tor the best price, aud who il expected 10 max,
liberal cash advances to bis country friends, TO he
funded Ia him when the crop is received and soil =
The Banks cannot give him accommodation TO any
extent, no matter how strong may be his eniorscrs
aud no matter though his house DO full OF country
produce or storage. These will not give him credit nj
~
country friends That he should hold 10 their crops,
TO await better prices end to take advantage vi Il
risin2 market, he must either sell 10 meet his bank
engagements or euler the modification OF susprn-
sion. The same system Of banking produces mere
thu greatest injury to that class Of our merchants
and also, to The farmers and planters Cj The coa9try
As consequence of this system, not only must th.
produce OF the country be sold jar cash, but must.
rs Il general yiHe, be soH on a,r,r0l. IL may be
matter OF surprise but il u.s. nevertheless, true tina.
there few or storc-houses for the storing of
wheat aud corn and -four in the city. except those
owned by the millers aud the Northern shippers.
both Of whom deal in Northern drafts.
The TURNER sends his grain TO market, aud his COM
mission merchant is well nigh compelled TO sell it for
want of adequate storage accommodations. We're
the banking system changed, our farmers could send
their produce 10 market and the price then current
WAS not satisfactory, they could place III store, be
able to obtain Il liberal cash advance upU it, aud
whit for better price. But that is impossible now,
except To u most limited extent. Away then, with
this dclusion that the interest OF our farmers requires
that Northern shippers and tobacco manufacturers
should be accommodated, ~ accommodation 10 lheth
II virtually IN accommodation to the iarmer III lis
much rs II gives to these classes OF our merchants
the ability ~ buy. But while this Is true 10 GER
tain extent it is equally true that II takes IRON. Inc
furmer or his commission merchant, inc aDliUy |"
hold and in This sue OF things, 10 not ne ana Ills pro-
Guce al the mercy Of the buyers The iurmer mas
received, perhaps, small advance from his connis-
sion merchant he has debt to some merchant Tor
guaro has Doctors bil' ovcrscer wages ana iner
chants bills at home pay-his whole debt perhaps,
is not us nrge rs the expected proceeds Of his crops,
aud the argument is that, looking to his 1.-THE farmers
interest. YOU not To give his commission merchant
accommodation, or the merchant who has sold the
yuuuO and is disposed to extend the credit If he Gun
possibly do so, 10 give the farmer himself the ab
lty for slor. time to pny of his pressing demands
aud thus enable him to mold aud store his crops, but
that you ehou.d lay him poscress at the feet Of the
buyer, TO whom you have given the means Ut cXtor;-
ht,I
Necessity Oh the other, would dictate Such argu
ment is about on Ii par with denial Of all acco;nno-
lation TO larger portion OF the community and Civ
IN. the whole funds Of the Bank 10 the smaller class
II meu whose vocation is shaving, i'll order that they
nay have Increased means Of buying the notes, of the
class refused accommodations At discount of not lcss
an two and half per cent. per month, aud, by In
'reasing the competition, slightly reducing the rates.
nd by the muy not be aIniss here TO state that
here may be something in the argument If the tears OF
IN acquaintance hud been verified. who in the darkest
hours of the annual fall pnncs, wac dreadtuy alarmed
hat things had not come 10 their worst, because he
cared that the funds ot the shavers were exhausted
nd they would have means to shave paper at any
discount
Equally injurious is this system in IFS effect upon The
yholrsale grocer, drygoods and other mrrchants-In
hort upon all classes OF men who make contracts |
yh aud take bills receivable from their ncgGbOrs
who live in the community, aud whose wealth is |
Inown aud acknowledged. These merchants have 10
compete in making their sales nth the merchants OF
he North and they nlust, therefore, give equal tacl
itl.s 20 their cusioners both aS 10 price ara rs To
erims Of credit But TO how great II disadvantage
ioes our SYSTEM of Banking subject tie home trade
.nercham; here may have 5.!ss receivable Of the
n7t uGqurs;iouab!u claractc. 20 The amount nj two
r three hundred housan, dollar, bu; they utter
v worthless - HIN until they become p.;aLe, and
hey arc to b. preserved Tie evdcncr Of debt,
lot rs ihe means 81 raising m"ilcy f:"ni oar
3HnSs. The merchant WHO relies upon them
. iurnis!: him with money in III lliergei-
y, will find them utterly WORTHLESS. at our Banks,
ud though ne may carry Oh his business 20 within
w days Of the time Of the payment, be may &c pro.
cstcd by the Bank, aud Le ruined precisely rs tru-
;ecr may perish Of tEirs,, la dcsert within sight OF
Ir oasis. The Northern merchant however. has no
uch difficulty. The Banks Of the North will Dis
ount his paper according 10 their ability and thu, IL
s. that he is placed III superior position, in tie
contest :,r tho trade Of oven Our Southern country
merchants. l. e true thai the real capital, embarked
II business enables some o: our merchants To con
nd inst these odds, but they would do i better,
;hrse impyiimcnts were removed; Urd. win equa.
shts aud privileges (aud they ask no tD2rej Ca:
southern conventions would fmG their otJcct accom-
,lthed, their mission performed, AID all men OF the
;outh would patIouize the trede OF the South, be-
ause their pecuniary interest required il. and, be-
ause the goods here were actu-Uy chcc2er than al
he Northern cities
But another singular feature in this mode Of bank
NJ is, that the seller. not te buyer, is required 10
:sl mn epdorscr. II order comes to seller here,
ron, New York house Of good credit, for "ne thou
MIS-, barrels Of flour. and with the further directions
q draw at four months for its value, the hour il ut
nee shipped, if the price ~ satisfactory The iner-
hun, here puts into bank here four mcIs' draft,
veil endorsed by city friend, aud obtains the
ley uuon il. Now, il is well known tha; this is re-
'crsn!. the Usual mode of trading. II home dealer
houid desire 10 buy any article OF Value here, upon
. credit of four months he would be Obliged 10
urniSh endorscr, If security wa thought ncccs-
AIRY, as to make his paper disccun'nbie. From
his strange mode Of doing business follow several
'ulis rqucnccs of the most injurious chnrnrter To
southern commerce. 1t affords premium to q
Shipment to the North, even though il il the pur-
pose of the buyer TO have thu cnrgo rc-shipped 10
,nohrr port and thus defeats the great object Of
Southern commercial conycntions--a direct trade
gain, it offers an nduceDent to our citizens 20 re-
move from the South to the North, as they find that
while residing the North they purchase here |
without advance of money or security-the pro-
ducts Of the country which they could not do 80
Dng a. they remained at the South And this aivan-
ta,:e becomes even srealer when it is recollcctrd,
haL while residing here, our Banks by law cannot |
discount any of their paper upon which their names
appear M makers endorscrs for fifty Thousand
dollars but that upon their acc"ptances of North !
prn drafts no such restriction il held to apply, and
the Banks, by some strange construction uf inv, |
consider that they can discount paper drawn on the
same person ut the North for any amount they may
have (" lend IL is true, that the be done |
by paying commission to q house in New York, |
aud directing him to buy the -four or tobacco here |
"n the terms. But this is circuitous opern-
ton, has not right look and produces loss to the
party dealing in the commissions and other expenses
which may probably swallow up the expected profits.
AS another consequence Of the seller, not the
buyer, giving security OH these draft il results that
in case oi failure of the buyer. the seller must lose
the value of the articles Sold which would not be tho
case if the buyer had, i'll the first instance been
PEELED to pay cash, give his note well endorsed.
And it could be easily shown that this mode OF bus:
ness is not only most hazardous 10 the merchant
drawing tho bill, but also upon the banks discount
ing it. No doubt that the merchants themselves
would much prefer to take we'll secured negotiable
note, il the so-cncd course OF trade broken
up, and such paper becomes readily discountable.
Now, no one would object 10 merchant from the
North bringing money TO pay for what he buys. We
do not seek place him worso footing than that
of on. own citizens but do object to his obtaining
the productions OF tie South, which is the capital of the