New Orleans daily crescent. [volume] ([New Orleans, La.]) 1851-1866, 1857-10-06
WI: HONEY PANIc-PRIcE or CoTroN.

WkAE MONEH EANAC--A.xNANs% - - - : y -
iii reference ia these subjects Of absorbing import
ance, the Mobile Register of Saturday morning mas
the subjoined observations
EFFECT on rms MONEY PAxfc on THE PRIcE oF |
CorToN- ANY distarbaxce 81 the course of business
throughout must anecs W. N
cial transactions consequent upon the failure OF nv
ferous large and influential houses upon whose sci
yency much has been hazarded, willof necessity ar
rest for time the current q trade ana ocsss .ba
pfice Or cotton at New Orleans an two or three Gays
can bexSctibed to other cause. The loss OF con-
hdence induced by the extensive suspensiens ana
bankruptcies at the North has rendered tne nego.a
non Of exchange in our Southern cities very dlfcnis
md Of course the purchase of cotton ID
The tightness of the money market alone mas pro-
duced this decline; for beyond this there y every
reason. why cotton should advance Ine stock on
hand in Europe and this country il much smaller
than usual; the growing crop promises 70 ian ne!ow
an average, and the consumption is daily becoming
greater throughout the world. According to all the
laws Of supply and demand, therefore, the Price
should be enhanced. 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
We think there can be little doubt that as soon as
the present alarm subsidies, cotton will command
higher price than it has done for several years
Our planters and merchants therefore, should be OF
good cheer, and only have little patience.
So far Us the cotton market of New Orleans is CON
the Register does not give the true reason for
e great and sudden decline in the price Of our great
staple which our financial editor foretold must and
would take place. The money panic at the North,
and Northern failures would not have affected our
market seriously, had not the last Legislature nam
pered the banks with wretched law which, without
accomplishing any good without adding TO the secn
rty of notehoders without afording any additional
protection to stockholders tied the hands 81 tne
bank managers SO esctually that they could extend
no adequate relief to the commercial community al
though amply able to do 80.
Our banks WERE are, and viii continue to be, finan-
csl Gibraltes SO long they remain under the con-
troll of their present prudent discreet and sklui man
ayers. Their position is mpregnable. No shock
nor storm come it from the East or from the West,
or from any other quarter from all other quarters
can affect them. Their solyency sure, complete and
positive, in any and all respects, is not only I'M
doubted, but above aud beyond suspicion. II every
banking institution on earth went down before the
waves Of financial disaster, our banks would remain
erect, double fire proof No l, in their solvent i'm
pregnabilty. s5si5
Had not the law we have mentioned been in exist
ence the banks could and would, with entire safety
| to the stockholders and the community, have ex-
banded their issues several millions Of dollars during
the late crisiswe say late, because we believe the
main trouble is now oyer--which expansion would
have relieved the pressure and prevented the price
Of our great staple from descending 80 rapidly, even
tif II had not stopped it entirely Banks are always
safe when they discount unquestioned and unqueson-
able paper, on legitimate time and they have been
compelled to throw out whole bushels of such paper
in consequence Of the arbitrary provisions of the law
referred to- The balance Of the story is easily told
The best paper that could or be made selling
on the streets at two three, and sometimes four per
cent per month discount! The directors Of the
various banks amenabe to the operations of the act
of the last Legislature could not afford to submit to
fine Of one hundred dollars 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 Of the commercial world of this city, For
this they deserve praise instead Of censure. They
have done all they could do and if loss and suffering
the result Of their not having done more, the fault
rests at the door Of our late lawmakers and lies with
those who originated framed and passed the injurious
4 bank act &
Last year, whenthe Banks were not nlanacled, they
extended valuable assistance to our cotton factors
There is no doubt to our mind, that they were the
means Of saving millions Of dollars to the planters o
this and the adjacent States, their timely and judi
ciously continued aid preventing a rush upon thu
market such as inevitably forces decline. We hat
| easy times last season. We would have had com
/ paratively easy times this season, notwithstanding
Northern and Western entanglements might have in
terlered with somewhat but for the cause alluded
4 to. With ample means, and with every disposition
to accommodate our banks have been constrained il
sefdefense, to keep within the iron requirements
A an uncalled.for and worse than useless law.
It is to be hoped the next Legislature will repeal
or essentially modify the act in question. The Bank
should not be prohibited from extending assistanc
to the commercial community, aud through that com
munity to planters and the members of all other in
dustral ayocatons in times Of strngency, when the
4 can do so with absolute security; and they shoul'
have time allowed them to work themselves back int
line Surprising thirty days had been allowed nstea
of daily rigidity, what difference would it not hav
made in the operations of the last two or three weeks
The question, on account of the magnitude of the in
teress involved is difficult one to answer with pre-
4 cision. 54fs.szE
II the best paper that could be made has bee
/" shaved at ruinous rates-if the sknning has bee
more merciless than ever before known-if planter
have suffered severely from the heavy discount 0
4 their merchants acceptances, instead Of gettin
money at bank rates, the lenders glad to loan it
them -and If the stringency has operated detrimen
ally In numerous solvent quarters, let the sufern
parties charge seyenefghths of the fault to the Al
thors and passers Of law that seemed to have bee
gotten up in sheer wantonness, and engrafted upe
the statute books of the commonwealth for purpos
Of injury. The great preponderance Of the ban
rests upon the dominant party Of the last Legislator
beyond all controversy. Let this fact be borne
mind during the present, and well remembered in tt
future.
A GREAT yILLAIN.--A physician of Buffalo, N.
was sent for recently to go to Grand Island and
: tend supposed dying woman. He found girl
!. l6. who gave her name as Pelow, with her thro
horribly cut, and her person otherwise mangled al
bruised She told her story, in substance to the ee
that her husband recently stole two hundred dollars
:, Buffalo fled with her to Canada, spent the none,
killed horse and broke carriage to pieces escap
Y to Grand Island and here led her off into sor
y woods and attempted to kill her-cuttng her thro
n with q jack-knise and jumping on her head. t
island was In state Of intense excitement and ps
ties were securing the country search of the villa
u HEAVY sDAMAGEs.--The Supreme Judicial Cor
a Of Boston, in the case Of Mrs Sarah E. Shaw vs.
49, rry4 ~ \ 49,. =.