Keowee courier. [volume] (Pickens Court House, S.C.) 1849-current, 1860-11-17
The Money Pressure.

who arc disposed to charge the present strin.
| gency in the money market entirely to ba !
| management, or improper trading, on the part
of our Banks. While we arc disposed to be-
licve that there are instances of unwar1ant
bic use of the power which their position
gives to them, we are unwilling to Join in
any such wholesale condemnation There are
constantly occurring fluctuations and changes
in the course of commercial or financial trade,
entirely beyond the foresight or control of
either the merchant oil the banker
The people of the Southern States are an
agricultural and not commercial people -
Nearly the whole of their capital is employed
in the former branch of industry, where it
becomes permanent investment. Banking
is conducted by an association of capital
which is supposed, from the facilities afforded
by it's credit, to be able to trade to the extent
OF two or three times the amount of actual
capital employed and this is true under GER
tain circumstances.
The product of interest on our agricultu-
raj investment appears annually in the shape
of crop, which the Planter gathers and pre-
Pares for market, when ready he calls on the
Banks, either directly or through his Factor,
for the means to move it to market on the
seaboard and to enable him to prepare for the
destination, or can be realized. There alvan-
ces arc made by tho Banks on time, varying
from sixty days to six months. This they
can do with perfect safety to the full extent
of the actual cash capital of the Banks; but
the capital alone, of all the Banks in the
country, would be very insufficient for the
purpose, if deprived of the advantages of
their credit, as represented by their notes and
drafts, which form so large and convenient
part of the circulation of the country. From
this credit or circulation arise the profits of
Banking, and now we come to the fluctuations
of this circulation which arc in many cases
entirely beyond the control of the managers
of these institutions When our crops begin
to come to market, we are always in debt at
the North or in Europe, aud the facilities af
forded by the Banks must be cautiously and
carefully extended but as these crops ad-
vance to market, and are sold, we work out
of our foreign debt, and the proceeds 90 back
to the planter; but how do they go? Why
in Bank circulation. Because when the Cot
ton, for instance, is sold to the Northern or
European manufacturer we do not get paid
for it, but again the Banks are called upon
to furnish the money, and the manufacturer
is allowed from sixty days to -four months on
his acceptance before he is required to paw
for the crop, which has been now from four
to six months since it left the Planters hands,
and all of which time the Banks have fur
nished the money or the credit This is what
the Banks are expected to do and what they
can do satisfactorily, until that period of the
year arrives when the Southern merchant is
required to make his payment in Northern
cities, then he gathers up these Bank notes
and credits, and presenting them at the coun.
ter demands of the Bank its coin, or its OK
change; and this demand increases until it
reaches that period in the year when the old
crop of the country is exhausted and the new
crop is not yet in market. During this inter
regnum the credits or circulation of the
Banks being constantly sought after and
brought for redemption, of course no more
notes are issued until this demand is over for
the time, and by this means the loans of the
Banks are reduced almost to the bare amount
of their capital, and the community begin to
feel pressure
Added to these causes is the fact, that Mt
this same period of the year large number
OF our citizens leave homo to spend their mon
ey and the summer in the Northern States or
in Europe. This may appear of trihing i'm
portance until we look at the fact that about
five thousand persons leave this State alone
and when we average their expenditures al
SIX hundred dollars each, it makes an aggre.
gate of three millions of dollars annually ex.
pended in travelling and living, and which in
no shape or form returns to u.s. This, too
comes out of the Banks, in many cases, in the
shape of loans. Added to all this, most OF
the foreign importations into this city arc
made at this season, and the duties paid into
the Custom House abstract so much more
from the available means of the Banks. Here.
totore coin has never flowed into this CITY in
the way of trade, but almost every dollar that
comes is imported by the Banks at a heavy
cost This is the course which financial mat.
ters usually take in the South generally, and
particularly in this city. Now we have SUI
peradded to an aggravation of the foregoing
difficulties, those growing out of the threat
ening aspect of political affairs.
The election of Lincoln will, in all prob
ability, destroy the present Confederation.
If 1t docs not, it will certainly shake it to it.
centre 1t becomes prudent men, therefore
so to shape their course as to meet the shocl
with as much preparation and as little at stalk,
as possible. This has led to the shortening o
the time on which drafts would be taken OF
Northern acceptors. In case of difficulty, i
would be better that they should not have tn,
Cotton and the money too. 1t is tie perioc
when we will be out of debt to them, and i
would be best that we should not have an ac
count more than square. Our crops are com
ing rapidly forward, and are bringing gooc
prices. Both the North and Europe mus
have our Cotton, and if we will not take thei
paper they will bring us their money and th