The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-11-06
VIRGINIA.
TOBACCO MASuFAcrv RERs AND THE NEW yoRK


| MERCHANTS.
| from the Peters burg Wal Intelligcncer.l
The business of manufacturing tobacco carried on -
immense extent in Virginia. and constitutes OF our
most important interests. 10 H. In fact conspicuous
| ment OF commerce. and contributes in easy tmes
| largely to our prosperity. Richmond, Iynchburg Ps-
burg and Danville the principal places which
this business IL conducted and present crisis
commenced It's havoc there aggregate OF
hundred tobacco factories these -four towns all ono
ration turning out heavy quantity Of work every week,
and giving constant and reinnneraivc employment 10
of white in n supervisory capacity and thou
sands of slaves and free negroes AZ Ciarksville and
farnve, also, numerous establishments OF the kind,
besides others at different points OF the interior conduct
ed by enerprising individuals From this statement ~
clear that the manufacture of tobacco business
tally connected with the welfare OF the State and should
therefore he considered worthy of high place public
regard especially when under the disastrous Influences
Of general monetary rcvulson like the present IL
riously dktnrbw embarrassed and endangered.
AtentoG has recently been called to the and inn
projections o the upon which this business has
heretofore been conducted and tho expcdency, tho
necessity, Of reforming y now under discussion. We
have always been OF the opinion that the long prevalent
mode Of selling the manufactured article At variance
with all sound principles Of trade and tended ~ expose
the manufacturers 10 hazards formidable enough 10 keep
them necessarily IN state u uncas mess " not 81 alarm.
Their whole fortunes IN the hands and ~ the mercy
OF distant agents, who surrounded by excitements
and temptations II "A elar,cter In ordinary times To
involve them In outside and impruden adventures in
which their well the consigBers interests may
suffer But laying aside this view Of the matter the
t'ia radically wrong inasmnch ~ u = based upon -
principle which 10 be rreconclabe with the
idea or that fun and direct responsibility and security
which enter into every legitimate mercantile transaction,
what Is the system Of which spcakingS II Is this,
manufacturer Virginia ships 100 packages Of tobacc0
10 a commission merchant in New York and draws uroa
him NJ four months for 75 per cent OF the invoice value.
The New York merchant accepts and rcurs- the draft W
the consgnor, who TO the bank and gets discount
ed-no,, however, without his endorsation, which
makes him liable 10 pay the draft At maturity the
almost his acceptance despatched, and may sell inn
medatey, either for cash at eight months credit,
taking, Of course, good negotiable paper from the
~ every dollar of the money for four months for be
observed he has not advanced actually cent 10
the manufacturer. He has merely psnned an ar
ccptance upon paper, which Is payable less tmo
than -four calendar months. II he sells eight months
tune taking bankablc paper for tho purchase he has tho
use az this for four montls and may raise money upon TO-
render otherwise servceabc 10 basclf in tho inter-
val Now u perfectly obvious that this Transaction
tho benefit IA all side The copsignee has ns-
mensey the advantage lie has tho consgnors property
in hts hands can convert ~ any tune 20 hs own pna
poses he n disposed ~ do SOFT serves 70 increase ns
credit and enlarge his business lie makes nv comms-
and pockets considerable profits besides N the shape
OF other charges the absence of financial PRESSURE,
when trade goes smoothly he pays the acceptance n
the II four months But MT paid IN truth cut u
Of tobaseoi suppose. however that pressure
occurs before the draft maurcsa pressure which puss
| bor-oxpv Otherwise mpracicasle. Whist then v The
i aspect Of the Transaction We have gisrtngiy
| exhibited in the recent return a acrcptarces ap~sm
| the drawers IN Virginia, 10 he pAf ~ thsin
unless the banks holding this paper VII extend the tno
th manufacturer here has parted with his tobacco fcr
raper obligation utterly vauecss w him Tor the purpose
FOR which given, whilst the commission merchant
has realized all tie profit from this has busi
ness The manufacturer IN other words hs1
borrowed hts money from the New York agent aud
strange 10 say Ibis simple signature of his by Tho
latter the face 81 four months draft called mer
camille Iarlance cash advance funny q advances
must he in The estimation OF those drawers who now
have W protect by thor such drafts sgass
protest and thus their from being is
honcredi II there is not roou for reform IN ys.sss
which works In way like this, we have certainly
very Wandering conception Of the proper .s
between the two parties. We have not une - .s. -
rc,,arks further upon the subject ~, We ca' ss
fran from appealing, in conelus,on the .s g..
from q communication which appeared n voc
days ago, from tho pen Of very intelligent IN nj re a.
whs seerns 10 be thoroughly acquainted WIN VIZ. ~ ss
tails OF the present system. He Proposes va, S -, ~.
ton Of manufacturers shall be held w k,.nno =" 80
pet Of pecev her and think the propcs,,' s,cs.
l k,ug INCONVENIENCE worthy Of favorable cons'actS
Il ton
rhs s.c,a, comes to virginia, sccts shipments o. NJ
r.s,,reJ ,ob.cco and offers, ~ usual WIN commm-
l , ...an,. ,o make liberal advances ON consagn-
son Iyss ADVANCE consists OF an acceptance Tour
hs time uron the shipment of the goods, cr ono NJ
| -. 80 ,h,ds The market value OF the invoice
rns shipment goes forward and IL sold and eaaee red
,.aS ,nx arab,y on credit OF eight months, whom ves
ssaasaily . w ~ k2ew laaa held uyas9 grsRassl