The New York herald., 1860-12-10

il exhausted II Is impossible on the other 20 ship
cotton nom New Orleans 20 Europe at present
prices without heavy loss. IN other words, cot
ton must fall still lower before business
viii revive. 1t is argued IN sowe quarters
that there will be no further fall in cetton, because
tae psnters, by simply deferring payment of their
debts, can hold back their crop. Unfortunate
y for the planters, the drought of last summer has
so reduced their stock of food that they must
either sell COTTON 70 buy corn and bacon, or let
their negroes starve. II is in the mower Of the
Alabama Mississippi Georgia planters TO hold
back tbeir crop A few heavy planters who have
outside means may be able TO do so; but tho large
proportion of the cotton growers-the men who
produce from five 10 a thousand bales--must sell
or sts,ve, II is said by some that the immense
manufacturing activity Of Europe and the United
States msst create a large demand for cotton, and
that the price must rise the news Of the decline
in the receipts al he ports. This reasoning was
well enough before the present revolution II
there had been no political trouble, the South
woula probably have sold every bale of its cotton
on the basis Of I3 a Il cents for mddling uplands.
Bur we have changed all this. The factories Of
New England are alta stand STILL and need little or
no cotton. II the present dead lock continues, or
bales gone. The factories Of Manchester and other
English towns must also reduce their force and
their consumption of.cot,on for the political crisis
has forced every Northern importer 10 re-
woke or suspend his orders for British
goods. Here is a market for other 10000
bales gone. How rs it possible that there can
be any recovery in the price of the staple in the
face of 80 wholesale a decrease Of consumption?
go tho notc tcnfth tha
there seems to be great deal Of force in the rea
soning of those cotton factors and merchants who
expect in the course Of few weeks TO buy all the
cotton they want at a cents pound.
The prospect illustrates in a remarkable manner
the theory Of commercial compensation, and the
solidarity of interests existing among all branches
of commerce and industry. few weeks ago,
when exchange first fell below the legal par be-
tween this country and England, we pointed out
that the fact was evidence Of the supremacy of New
| York in the commerce of the world. For the first
time in history the United States We're a creditor
| of Europe. Had no accident happened we could
have maintained for a long time, perhaps perma-
| nenty, the vantage ground our enormous prodnc-
ton and our frugal consumption had thus won for
| us We were selling our staples at very high
| prices: and the North was supplying food SO
/ freely that the British cotton market was not in
| jured by the short harvest. Suddenly, in the
midst of this startling transition, revolution
breaks out at the South and as neces-
! sary consequence, in the course of few days,
| cotton falls two cents pound. In few days
! more il falls another cent. In a few days more it
is unsaleable al the decline, and the planters at
| tempt the futile game of holding back their crop.
| The country thus loses all the advantage we had
| won III the commercial contest with England, and
| matters fall back into the position in which they
| were before. No sooner will the English learn
that the state of the exchanges enables to inn
port gold from them than they will also learn that
| cotton has declined 5 cents pound, and that
| even If the decline goes no further, and their con-
| sumption does not fall off, they will save
$50 900 their purchases Of cotton this year.
| They will thus perceive at glance that revo-
! luton, while il hurts Them hand, benefits
| them on the other, and that any trifing pinch
which may be occasioned by the first shipments OF
bullion to this side will be than compensated
| by the substantial benefit they will derive from
being able TO buy their cotton at decline of -
| per cent.
| II is understood that the banks will not show
any material change in their specie average to-
morrow. Last Monday they showed an average
| of sis, ,762, a decrease Of s2l7,6ll from the
| week previous. since then they have lost money
TO the South hat have received remittance from
! California and some from the neighboring cities
besides something from the Sub Treasury, in which
institution the balance yesterday stood at 50 rs, :
3O0 against e. 102 Isl al the close Of last week.
| The discounts will probably show an increase.
Their last average sl29 ,537 ,459, an apparent
| increase OF a. s70l9O05 from the week previous.
The new bank policy continues TO be discussed
without much light being thrown upon il from any
| quarter. II il evident that, when the banks an.
nounced their intention Of expanding on the new
| plan, every merchant who had payments TO meet
applied for all he could get, and much more than
he wanted for some time to come. The banks
ten days. hut in point of fact. the movement is a
mere matter Of form. 50 far a. the bank returns
show nothing has been done with the money loaned
ont II lies in the banks in the shape Of deposits.
trifle has gone to Boston; but six and half of the
millions remain in the banks For the present,
| therefore, the movement cannot be productive OF
| injury. A TO the future, that must depend upon
the of political events If the present reyo.
luton progresses aud civil war still remains posi-.
bile in February neNf. il will be impossible for the
counted, and are dscountug to meet il at maturi.
~. Property j. depreoiating fast ami merchan-
disc is unsalsAble. that IL the present state Of
things lasts much longer. veryhttle paper indeed
of that which Is now a1oat viii Be duly paid.
This i more especially the case with the paper
of houses in the Southern trade il j. known that
no money q, all y coming from the South, and
that collections in that section are impossible
The money market Il about a, il was a week
| ago. On call, the brokers freely supplied at
seven per cent. But there Is no market for paper.
The he-t gilt edge sells and then. at u Is a
| - per cent: but one must look long
time even io iina buyer at these rates. There
! j. reason to believe that the stagna,ion In
/ the discount market j. only temporary.
/ People Who have money want to see
I the effect cf our crisis England befo,c
they pert with Il. They want also to zee some