, 1860-11-21
Tho Rationale of the 1nstfc.

That our readers may understand little
more precisely why and how the present tlnau.
csal crisis las occurred, they must understand
tho process by which the business of tie Cut.
ton States is transacted. 1t differs entirely
from TINT to which VIC are accustomed In the
Northern States, aud the WORT feature Of 1t is
that any arrangement Of credit In Charleston,
Mobile or New Orleans Is felt with great Sc.
ycsity throughout the cnt1re region depcudcut
upon them for supplies md export facilities.
The planter conslgns his rice or cotton to
some factor, who disposes Of it, and alter pur-
chasing such articles Us were ordered at llle
time oi advance Of the consignment, sends an
account Of sales and disbursements and bal
ancc on hand to his principal, who draws on
him when he needs the money, till 1t is cx-
hausted. The purchaser Of the cotton then
either ships 1t, consigned to some house abroad
and sells the draft against it with the bills ol
lading attached. 10 the banks Of foreign agents,
or sells the cotton itself to thc same parties.
Bills drawn On Liverpool or London arc
chiefly at sixty days sight, with the expecta-
tion that the shipment will be received and
sold before they mature. The present dis
trust Of bills drawn by the Charleston banks
.arlsc from the fear that, owing to The insurrcc-
ton may be declared no longer port Of entry,
and be bloekaded, SO that tie cotton could not
90 forward; when, Of course, their bills woulu
be returned, with heavy damage against th.
cndorsers. Ifsecession or any attempt to seizc
tho forts should take place, tie port would be
cotton or bills; the planter could not sell hfe
crop nor buy his supplies; the merchant could
neither sell his goods nor get his pay tol
those already sold on credit, and universal
bankruptcy would prevail throughout The
State with the greater severity this year, thai
the com crop is 40 deficient that many plant.
crs find it will take all they receive for their
cotton to purchasc food for their hands till the
next crop comes in When to this is added
the heavy taxation intcparab1c from the 1naju-
tenapcc of large bodies Of troops and pur.
chases Of war material, 1t is evident that the
immediate effect must be to dcrange the vital
circulation Of the slave States and subject
must share in proportion TO The extent of it,
ordinary commercial transactions with that
section.
It. is to prevent this interruption olcommcr.
cial circulation that our banks and business
men are making great efforts, and we may add
great sacrifices every DAY. They may accom-
plish much, but we fear they cannot prevent
gradual but steady depression Of values for
some time yet to come. There is very large
body Of negroes to be fed at the South, at IN
extraordinary expense. That cost Willincrease
from day to day until the new crop comes in
and, till the extent Of this extraordinary ex-
pcnsc can be estimated, tle North cannot SET
lie up with the South, ana eettilng up Is pro-
cess which must prcccdc any permanent arrest
of Z declining market Our people must not,
therefore, look to any iatefmproycment
In our financial condition. Tic clouds in the
political horizon will be speedily disposed Of;
but the financial atmosphere cannot be so east
ly c!earcd. The commercial relations Of the
North cannot be restored until both sections
agree upon terms for mutual discharge, re-
suit which cannot be nttained until not only
the balance of Indebtedness, but the resources
for It's payment arc pretty accurately ascer-
tained.-N. i. F4st