Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1857-11-01

I meut OF the a~ccepHAnees wien u4c-ala lhua
I The bank gets the fund IN New Orleans. This
fund is Transferred from New Odeahs to New
York: and there and thus the Memphis banks
obtain the exchange which they sell to the
merchants OF the city and country as before
stated for the notes issued By the banks in the
nurchase from the cotton dealers Of the New
/ Orleans aceepsances. L. this manner, the cir
Gle is completed-the currency has been pro-
Vided az Memphis to effect the sale Of the cot
ton there, and the means provided to pay the
iebt Of the country By its supplies from abroad
The notes produce the exchange, and the eX-
change takes up the notes. The cotton OF the
country is sold and the debt Of the country is
/ paid; and such is the Office and agency Of the
bank notes. By this process a market is made
at Memphis for the sale OF the crop Of the
/ country. and a mode provided for the payment
/ Of the debt Of the country.
The banks, then, furnish the means whereby
he crop is bought and sid az Memphis. Be-
| fore the banks were brought here; the crop was
sent through Memphis to New Orleans, and
I he sales were made there. Destroy the banks
and the trade returns back 70 New Orleans.
Observe how.
IE uak-s a large amount OF money 10 carry
o. this trade here. At the time of the most
active and large trade ia cotton, in the crop
season. the amount Of bank-notes and credits
issued will reach into the neighboThOod Of
S4.000,000. Coin viii not com TO TAX its
place. Il cannot be drawn here. NOeommer-
/ cial force can draw it here. TIE market
would sooner break down under the demand.
The sales would stop. Neither New Orleans
OF New York could bear the exhaustion. Il
8 much more than our share Of the precious
metals employed as money in trade. No coun-
rTy or region Of cOgHtry employs such A pro-
portion Of coin TO its trade The annual pro-
ducts Of the United States are es mated TO
reach about two thousand millions Of dollars.
The coin Of the country is not over two bum
bred millions. Everywhere the coin OF a coun-
~ falls vastly short Of the amount Of its
probable trade. For this reason it is utterly
absurd to suppose that coin ran be drawn here
20 al amount At all approaching the amount of
money which The banks supply as necessary to
carry on this trade.
Agsin-for anotheTrs as0n it is absurdto cup
pose that coin can be drawn here to I'll the
/ place Of the bank notes. The average value Of
be crop OF the country trading az Memphis
msy be put down Al about SI5,001,000. OF
course, nobody is Wild enough to suppose that
dftesn millions Of coin wOuid be brought here
every year. u brought, most Of it would be
sent of before the year was oat, TO pay the
debt csing abroad by the country. Il the coin
be brought here for the crop, there would Of
course be no Northern Exchange brought here
as proceeds OF the crop. The proceeds would
be coin, not Exchange. Therefore, the debt
could not be paid in Exchange.
But what amount Of coin would be brought
here? Nothing more than that would remain F;
hat iE, the surplus OF the proceeds Of the crop
ever the debt Of the country. Toe crop OF he
country mus. pay the debt Of the country. If
more coin were 20 be brought here than the sur
plus Of the crop over the debt, it wou!i have 10
be sent away 10 pay the debt.
Bat If the coll is not 20 remain here, it will
not Be brought here. The movement of coin
Is costly. The journey here would be to no
purpose, Instead then Of coming here. il would
| 20 directly 70 the point where iE is needed to
I pay our debt. Instead Of coming to Memphis,
70 be seUt from here TO New York, it will &c
directly % New York in the FIRST Instance. Or
rather It would fall into the general balances
Of The trade Of the large cities that are con
cerned in our trade, and TIE coin would BE-
shifted between them according to the shifting
balances Of the general trade between them.
set u down, therefore, as A sure thing, for the
contemplation OF those drsamers VINO fancy
that coli will take the place of banIshed bank
notes, that no more coin will be brought into
The couHtry tbaR an amount, nos much, and in
The long run not any exceeding the annual sur
/ plus Of the crop of the country above the debt
Of the country. And that amount is what we
Usually have in circulation here ntbe sumner.
after the crop has been sold and debt has
been paid after the bank notes which were
Issued Ia the crop season 70 buy the crop, have
gone back into the banks in the purchase Of
Northern Exchange to pay the debt Of the
I country.
Nov We see the Office which the bank notes
and credits perform in the sale Of the crop
here aud ia the payment Of the cebt Of tie
country, and the amount Of bank notes and
credits Il requires to perform that ofhce-and
! that r~fr. ~ an aHnonrH e~taH - fHa arnIs -
not Be drawn hsre-and that hot any great
deal mere viii be broogh. than the surplus OF
the crop over the DEBT, which surplus is eel
DON much ard often nothing and sometimes
less than nothing-and that the place where
he crop viii be sold is the place where ths
{ proceeds will provide the means Of paying the
debt owing BY the country
Aad is 1t not thus rather plain that this no.
ton Of banishing bank notes from Commerce
and radically changing the modes Of trade
here, is very likely. If adopted. 70 endangsr
the prosperity Of Memphis, the eonTenience
and safety 70 the country Of a home market.
where the farmer can see to his Own sales, can
know personally whom be sntrusts his cotton
20, EAU sell his cotton himself according to bis
judgment. and at his oiFn tine, and according
% his Dan pleasure, AID can get The proceeds
as soon as sold.
AfoHd notion i. is with the hard money philos-
ophers and quite captivating, too, % TIE farm
er and planter, that L bank noes were bsuish-
81 sHd coin substituted, that tie farmer and
planter could sch his crop Tor coin. Doubtess
be could And 50 be can when bank currency
exists, jest as well. Any man ear noW come
10 Me1phis-and sell has crop for coin, sHd car
ry it home, and pay it 10 those Be owes, and
shey Eili bring i back here. - when paper
currency is bsuishss. and The sale Of hisc Or.
Is transferred 20 Nsw Orleans, BE- esa rsqaiTs
the CON % be sent up % him, and tbsa Be pay
ais debts with T., aud those Whc get TIE con
viii semi q oack % New ofiezus or forward
to NeS York Bar this movement q con Coz :
something, freight, iHsgrance. watching, per-
sOnal travel. AN VITO pays al this costf he
farmer of course; it falls o. the puce II
tde crop. Tue farmer can TOW demand
coin ana get IL for his crop. BIT, a
c~sgrss, be gets q less price Sabsti5urs
c0iu, generally, for cIrfeney. and insv-
its5iy snf everywhere the standsrd o. prices
falls. Tie hard money stsBiaEd IL a iog staod-
ard. Il costs more % eoldact trade IL cola,
ihah IN bank notes. and this cost TIE producer
Of fhe crop pays The labor and cost 81 hand
ling tie coin, dimi5ishes the price paid for he
cIos-as 10 the labor and cos % Transport
Ing the crops To markets.
rhss when freiKhts rise. cotton fails and
Uicr rcrsa. The slmpie truth b., the tendsncg
~ i b waste a. little cost as posi-
bic upon the handling o. money. Money Is the
machine Hhich Moves trade. Like al machine
~, tue effort il 70 gorkIt with 81 litJs cost ~
Ipractfcaoie. Ard his commercial tendency
and forcs will oVsrcone sli lbe devicss AID de-
slres q he few men who propose plans and.
struggle against j. Tie forces Of trade viii
tolerate the moving q 10 slore coin than Is re-
qaisite to seattle balances. And no more than
this Amount willcone tot1isor any other eoun-
try la he course q trade.
And IL is tais very power which viii transfer
he cotton trade from Memphist 70 Neg Orleans.
Z the present mode of conducting the trade
here by bank credits be destroyed.
Let any man try to punt out the practical
rode by Hhich the cotton trade can Be dogs At
Memphis without an amount OF currency eqsal
% that which the banks now Furnish Il wili
puzzle bil 10 90 so. 5.
G. The London Star Of the 9th, says the p0-
tato rot has become very general.
~ Psper has been made At Boston from