Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1857-10-21

made. Northern EXCHANGE sold for some 8
to p per rent. premium, about the difference
between coin and bank notes. By the process
before shown, the bank got the exchange for
about an equal nominal amount Of its notes,
and sold the exchange for its own notes at q
premium Of from s to u per cert. Observe
the process In brief. The bank issued one
thousand dollars of its notes for about
a thousand dollar bill, or acceptance on New
orleans-the acceptance was paid in New
Orleans funds at par with coin-ths fund, one
thousand dollars was transferred from New
Orleans to New York, and then became a
Northern fund On which the bank checked
FOR Nortbera Exehsnge-s3ld this exchange
10 the merchant at a premium Of about 10 per
cent. on its own notss-one thousand dollarso
exchange for one thousand one hundred dollars
Of its notes-hus making % de $1,000 Of its
notes given Tor the New Orleans acceptance a
prof. OF one hsAdred dol.srs-getting back in
the sale Of the exchange its notes and a Preh fit
Of ten per cent. on the transaction.
Who paid this proft? Who suffered the
loss? OF course, those who produced the
@4GD " a. NtNA4-A- LII Ef
ers-lhe immediate and apparent loss may fall
on some party nearer to the bank in the line Of
agencies between the bank and the producers
but the ultimate loss falls on those who
stand at the beginning Of the line, those who
make the products out Of the soulh for sale.
Here then, lies the danger Of the present sus-
peusion TO the growth anil property OF this
city. Telegrapbs, Railroad, correspondents,
connections, multiplied Intercourse have brought
New Orleans greatly nearer to this country
than il was in 1ss7-42-and 50 have they
brought much nearer, too, New York, and Bos-
ton, and Liverpool the ultimate aud large mar
ksts Of consumption of eotton-andbaye made
It much easier and safer to have Immediate in
tercouTss with those ultimate markets for our
products. The farmer and planter viii no. sell
IN Memphis for deprecated bank currency,
when be can sell in New Orleans, or New YORK,
or Liverpool at the same nominal price for
coin. The cotton will strive to seek in the first
instance, the market where it is paid for in
coin. Already this thought and design has
found place in the minds Of nearly every man
who produces cotton for sale in the country.
The Memphis market must be put at the coin
standard, or the sale Of cotton here. between
the planter and the merchant will diminish, and
the trade here in supplies between the msr-
chant aud planter, will diminish, and the city
become more a shipping point, a place OF tran
sit, than a great commercial mart.
The evil will probably cure ITSELF. It is not
BOW possible to carry off the crop Of the coun-
try in a greatly deprecated eurreney-it is not
now possible for any considerable time, to keep
foreign exchange at high premium above bank
notes, or to keep coin at high premium above
bank notes. If the bank notes will not keep
near up to the level Of coin, they will be forced
out Of circulation as currency. Already these
remarks have extended too far, or it could cas-
iy be shown why this must be 50.
A word as to the brokers. It is easy to see
that the banks in order to keep their notes in cir
c~ulation, must maintain their value nearly Up
to the level in coin. This is the interest Of the
banks. The brokers interest is precisely the
reverse. He thrives on trade in deprecated
currency, on the necessities and disasters Of
6anks and individuals and the couatry gener.
aIly-and his interest is to promote the depre-
citation Of bank currency, the necessities aud
disasters Of merchants and others. This is
what webave always heard recently, and in
oar midst it has become a spectacle, a thing
every man has seen and felt. The newspaper
is a powerful agent upon public and private
opinion, and the values of bank enrrerry are
for the time Intensely acted on BY public
opinion. Tue brokers have had possession Of
this department OF newspapers, and wofully
have they abused it. It is q1ile time to take
It on. OF their hands. Editors should seek sons
other meaus Of ascertaining the values Of bank
notes thaR through brokers. Or rather, the
table OF bank note quotations shogld ex-
press the EDITORS opinions and the true facts,
and not the brokers' designs. S.