Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1858-10-26
RnsINrss WITH TIE SOUTH AND WEST.

We transfer the following we'll conceived eoo hp'
uropriste article to oar columns, from the New 10TH
| United Sta.es E~cnnomist, on tbs subject "i tbe oue'-
n.ss of the Northern Cities with The South and South
se-i:
The tu.ine.s done ,his fall. thu, far, has been very
satisfactory 10 thoes houses. The stability ot when WIS
mistaken by the panic Of the past year. lhelr business
haa been large aud their collections good. lneeene'
raj feature of the fall business is a remsrka6ie one
and will doubtless attract the attention OF isa1lte
merchants. il is the fact that the Southern and son'h'
western business IL come to BE- more reliable ana pro
ftable than the Northern and Western. IL Is now
less speculative. 1t is on q more steady oasis, hno
will, for the future, in all probability have the asceu
dsncy. Many years ago the Southern trade wa5 sup-
posed to be the source of all wealth, and every e1er'
ton was used to get and retain 1t. A rematkaGle
change took place. This was caused by the specuia-
tive excitement of lS32-'37. In those yeaTe The open,
ing OF The Mississippi lands took place, on borro~ed
money. II was found that cotton could Dc raised
cheaper in those countries than 10 the AushlG
States. Young planters divided OIL the pa'ernai
Negroes and proceeded to new lands. Inc money
was obtained by new State loans to start banks ana
large amounts Of Eastern capital went into these ne"
banks, which made their loans upon negroes ana COT
ton. The supply of cotton under this action became
very large, and the price was SUSTAINED py paper
loans. The production of cotton for five years 10
1882 was 1885, QUO bales, and for the next hVe years
6 5ll, 600 bales--sn increase of 50 per oent. inns
great increase was followed by a great isil IN price
and general insolvency.. The Southern trade cou!o
not pay, the banks all broke, negroes we're run 10
Texas. and in l843 cotton, which had sold az ~ oenIs
in 1873, brought only 6 cents. The North began 70
have a great contempt for Southern business lne
production of the great staple had outrun consumP,
lion, partly by reason OF the Increased grown anu
partly by reason of the deficient harvests OF England
from 1887 to 1912, which chilled the consumption OF
goods. Since that time there has been no speculation
at the South. The production OF the great s'apies
has gone on steadily, but the consumption u muse
-. to- -.lrau, ufr fha nfOducttOu, AID
since 1851 the prioe hss notably advanced, ID iace
of the largest crops. While the West ana Nor'h
have gone mad with railroad and land specuiallon,
the South has created no credits, Out hs enJoyeu
large profits from cotton. A crop OF tbree ana Il quar-
ter millions bales has been closed out at an average
of $50 per bale, and a new one is now coming FORWARD
at rising prices. As a consequence, the South pays
up it's bils we'll and promptly, while II IL sihos. ~
possible 10 get a dollar from the West. Inc poslil'H
of the South 10 now impregnable. 1t holds d inohop-
" of an article that must in the course Of events con
SANITY fall behind in the demand, and necessarily
appreciate In price, imparting a rising value 10 al
property dependent upon 1t. 1t follows, that WIN rvs
ing prices the amount OF property, os compared win
indebtedness, ia swelling in volume, comforting upon
that seotion a greater degree OF prosperity man per
hsps was ever enjoyed by q people. Inc steaoy su'
vance in the value Of Gotten 10 q price Whlch Is
LARGELY remunerative, takes from ths business al
spscuIatiye character, since tue demand 10 such
that the largest possible crop that the physical force
can raise can do no more than CHECK Inc rise' WINE
d shor, crop absorbs all surplus stocks. With the
staples of the West, on the other hand, in years OF
abundance there 10 no sale for the crops, and the loss
requires a good year or two to make It good' Inc
large purchases of goods that arc made IN the years
of prosperity, undergo aoheck when the export OF food
ceases and the price, fall. 1t follows that the
Southern business, which was hazardous fifteen
wears s%ince-when the staple was of doubtful profit
when its low prics prompted the abandonment OF Inc
cultivation of msnufacturing-bas now become saie
and steady. The cultivation is at present rates Tar more
profitable than manufacturing can be anywhere, That
IL, for those possessed OF hands and land. To puT.
chase land aud stock at The present high rates OF
hsuds, might not pay 60 we'll but nevertheless. leaves
hiph pro6rs. The urgent want of hands TO produce
tina, high-prlced material, may possibly concentrate
them in the cotton, sugar, rice and tobacco helds
from all other employments. and ultimately leave tDe
small trades open TO the more efficient race