The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-10-19
THE POSITION OF THE SOUTH IN TIKI
CRISIS.

From The Augusta fGes.) Oonatit atiosalst
The south hss been rich In substant.sl means
10 sosiain commercial Credit - at present. and JET since
1887, commercial credn hiss not been seriously
chants have specialized In staple ons
have yielded enormou pront, adding 70 the wealth of toe
bank commercial capital seems greatly psraysed
The new crop coming In bat the planter cannot cell a
satisfactory prcss 70 pay NE merchast-the merchant
but few accommodations either 70 send tho crop forward
orray commercial balAnces Why Ia thiss fhe whole
fsares and Consequent psnc 10 New York, CONNER
cAl centre which for the present. has rendered. serne
unavailable The maia ba,is Of our banking capital a The
South sterling fernihed by the cotton crop other
southern experts oar interior banks furnish them main
" with specie BY the purchase Of bills upon the seaportr
The southern" napsrts furnish much Of their Spec,s
by the purchase CT steriipg, and the sale &c
. part OF IL In Nev York Most OF our
New York exchange 10 drawn upon n, rrooeeos or
risrlirg sold In New York TO pay advances on ship.
neIn dreci firm Southern torts. Sering then, 10
mainly, ,nos,h indirectly, the bels o. our banking capt
tai TIE South Now. this resource fvynished ~ 10.
eimsle trace, and on real values n tho present ered
up. Starting csnnoi DO converted, except ri ruiuous
that ne oSctnt ef ssrltuo due % ne South u snusasry
large for hn seoion f The year. There Is, perhaps fIy
Aay milton due hrgasa alone, and ns q probably q
This sterling, converted into specie New York en-.
charge, would make Southern ranks rich in banking
c,es 10 The merchant and farnh means reoe cary
for The purchase Ct me prsscn, mon.
Bus vhy these large daes 70 The South 10 sterling al this
sbIo bslsrce The cotton CROP though short pcrhs
never sold for 90 much money maj due TO ,he
souib, and si urdYawn, 10 accounted for from lhe fact
that southern operators have had sreng isnoo
ton, bsvo purchascd much ~ their and credit
would permit, srd peld ncr account u . high
lint. which has only ia'ely been reached. I may add,
thai The Socthern balance has been rsieraby aided By
the carly shipments OF unusually ags 5ousera wheat
crop.
The South then has moi overtraded has lost BY
Improbable ,peouatons has only speculsed ~ mai
ns the best Of H staple thereby adding a Southern
wealth. Nor have southern banks overirsded or over
issued Their business has been mainly cauloas ana
legitimate one Thy hare proride6 snmsdsae y <
ony istt~ae rsass y dotno bv: thes mo- i~
sdtat>ly aooldte a rsnoe consequence, Of the uld and
recks adr-lars and disa,ross reclotOns Of TIC North
and NortA ueH What 10 EoH wanting IA nne-a little
rms-not 70 make, bus 10 convert ae1a means Ranks
known 70 be good should be fcrbtsrpg with each other
sud the public should patient ant forbcarnx with the
banks, and ret require or expect nmotstops from
them, Which, however strong In means, they
present able 70 furnish 70 Any great erent Relief
come. Sterling Q about commercial par In New
York that Ia really about ten per cent discount I'm New
uresns II 10 lower sls state OF thnEs perhs unprcce
derhd In our day. This Of course cannot last long
remsoy Win be found, sher a reyora,sn OF copf.
esncs, o. the i~rcrtat'on Of Tece from Europe