Daily Nashville patriot. [volume] (Nashville, Tenn.) 1857-1858, 1857-10-14
From the New Orleans Crescent, Oct. 81
m, q NInnnu Rnnic.Pricn nf nnnfnr


The reference of these subjects of absorbing i'm
pOrtance, the Mobile Register of Saturday morning
has the subjoined observation:
EFFECT OF THE MONEY PANIC ON THE PRICE OF
CoTToN.-Any disturbance of the course of bust
ness throughout the country must effect the
ket price of its great staples. The embarrassment
of commercial transactions consequent upon the
failure of numerous large and Influential houses,
upon whose solvency much has been haZarded, will
of necessity arrest for time the current OF trade
and occasion depression. The sudden decline of
24c upon the price of cotton at New Orleans, in
two or three days, can be ascribed to no other
cause The loss of confidence induced by the ex-
tensve suspensions and bankruptcies at the North,
has rendered the negotiation OF exchange IN our
Southern cities very difficult, and OF course the pur
chase of cotton is prevented. The tightness OF the
money market alone has pro1aced this decline for
bevond this there : every reason Why cotton
should advance. Tie stock On band 10 Europe and
this country is much smaller than usual; the grow
ing crop promises TO fall below an average, and the
consumption is daily becoming greater throughout
the world. According Il all the laws OF supply
and demand, therefore, the price should be enhanc
ed This temporary depression, however, will soon
pass away. Already the telegraph informs US
more quiet feeling is prevailing in those cities which
have been the severest sufferers, times are easier
and confidence will soon be re-established. We
think there can be little doubt that soon as the
present alarm SUBSIDIES cotton will command high
er price than il has done for several years past.
Our planters and merchants, therefore, should be
OF good cheer, and only have a little patience.
So far as the cotton market of New Orleans is
concerned the Register does not give the true
son for the great and sudden decline in the price of
our great staple, which financial editor foretod
must and would take place. The money panic at
the North, and Northern failures would not have af
fected our market seriously, had not the last Leg
isature hampered the banks with a Wretched law
.ti1ls
adding to the security of note holders-without at
fording any additional protection to stockholders-
tied the hands of the bank managers so effectually
that they could extend no adequate relief to the
commercial community, although amply able to do
30.
Our banks were, are, and will continue to be, f.
Dancial Gibraers, so long as they remain under
the control of their present prudent discreet and
skillful managers. Their position is impregnable.
No shock nor storm, come 1t from the East or
from the West, or from any other quarter or from
all other quarters, can affect them. Their sOlVen-
cy-sure, complete and positive, in any and all
respects, is not only undoubted, but above and
beyond suspicion. If every banking institution
on earth went down before the waves of financial
disaster, our banks would remain erect, double
A fire proof, No. l, in their solvent impregna-
bity.
Had not the law we have mentioned been in
existence, the banks could and would, With en-
tire safety to the stockholders and the commune
ty, have expanded their issues several millions OF
dollars during the late criss-we say late, because
We believe the main trial is now over-which ex.
pansOn would have relieved the pressure, and
prevented the price OF our great staple from de-
scending so rapidly, if it had not stopped
it entirely. Banks always safe when they
discount unquestioned aud unquestionable paper,
on legitimate time; and they have been cOmpell-
ed to throw out whole bushels of such paper in
consequence of the arbitrary provisions of the law
referred TO. The baRce OF the story is easily
told. The best paper that could or ron be made
went selling on the streets at two the53 and some
times four per cent. per month discount The d.
rectors OF the various banks amenabIe to the OPP
eratons OF the act OF the last Legislature could
not afford TO submit to a fine of one hundred dol
lars each per day for being out of the prescribed
line, no matter for how small an amount and were
necessarily obliged to protect themselves and the
institutions under their charge, at the expense o.
the commercial world of this city. For this they
deserve praise instead of censure They have done
all they could do; ami if Lose and suffering is the
result OF their not having done more the fault rest
at the door OF our late lawmakers aud lies witt
those who originated, framed and passed the iniu
Tious bank act
Last year, when the banks were not manacled
they extended valuable assistance TO our ootto
factors. There is no doubt, to our mind that the
were the means of saving millions of dollars To IN
planters of this and the adjacent States their tim,
ly and judciously continued aid preventing a rus
upon the market such as inevitably forces decline
We had easy times last season. We would hav
had comparatively easy times this season. notwitl
standing Northern aud Western ENHANCEMENT
might nave interfered with Us somewhat out to
the cause alluded to- With ample means, aud wiz
every disposition 20 accommodate, our banks has
been constrained, in self defense, to keep with
the iron requirementsOf an uncalled for and r
than useless Law.