The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-11-11
AFFAIRS In THE REBEL STATES.

ss'h~ 80 49, -
N~s~~N>~>~~~,~~c~>"o~~N~-N
THE FINANCIAL REvULSION AT THE SOUTH.
CONTINUED COMPLICATIONS ABOUT THE coffVN
LoAN--CorToN NOT SO POWERFUL MONARCH IN
THE SOUTH AFTER ALL, ETC.
way to Coyng,on KY where he intends remaining until
the over, brings the startling and interesting m
formation that tho great financial measure o. the repei
government known as the Cotton loan " his exploded,
and King Cotton is dethroned, and many OF his disap
posated subjects are in state Of revoN. Among many
schemes Of finance in the South were two more promi-
nent than all othersope for the Confederate govern
r,ent become (whas Bdde and Postlchwate found TO
themselves and tho United States Bank disastrous
many years since, tho controllers Of the entire cotton
CROP To this end, proposed that the Confederate
government shoulifoand material hank and issue their
post notes. payable two years nfter date, vaung tho
strictly middng cotton 8; ten cents per pound,
higher and lower grades in proportion, according
70 classification. T,te scheme contemplated the is
snng OF s200SpN0,000 on this basis, and then
500 900 more the contingency Of the large profits
The advocates I'll this believed government
would realize o. the sase Of the cotton Witch they conf
dcrayng al expenses attending it. This latter feature
excited the ever grassng cupdiy Of the cotton
who Thought they might arrange plan which would
tho government as weli and themselves better
The Planters who graspng though often ipro
vdent and was,efn knew well that their true interest
would tend to elevate their commodity ncmi-
naly, rs was the case in the pamy days OF
the famous brandon" and other Mississippi bank
ISSUES, 10 this end IL was agreed between the
government and the planters that the govern
ent should as loan from the planters, what
ever they, in their oneeided lberality and patriot
ism, might choose 10 subscribe, and the govern
ment 70 issue 10 them it's eight per cent bonds nj
Won eents per pound for cotton, and when the cot
Ton was sold 10 tho needy Englshman for fifteen e
twenty cents pound the planters affected TO believe
would be, they 10 get the excess in further Issue
nrsaeemaee Confederate bonds This latter plan WA
say adopted and the best orators Of the whole South
campagned Alabama, Mississippi, Arkansas, Georgia
Tennessee and all the cotton region for additions
scotton loan proclafning tho world through the
southern newspapers the loyalty and hberaljty Of the
southern planters, and the great OF the loan
which they confidently represented would, by January
1852 reach $500 900 000 Under this arrangement the
cunning and sharp planter, who ALL and in many
instances more than his crop would bring, paraded
through the Southern press caner 10 his government
Of fifty sixty thousand dollars when fact he could
not divert from tho channel Of his honest and inst cred
sors one thousand dollars and in fact only wanted TO
convert his crop into some copyeriibity. not caring
whether the money went TO nothing no intended pay
u out Immediately The time has arrived when the
cotton planter sees there is chance realize anything
Tor his cotton and he is notifying the government
that he ready To deliver his portion OF the loan when
70 his amazement, he is cooly met by proclamation
om ihe new Secretary Of the Confederate Treasury that
government ignores the whole arrangement and the
planter all at once finds himself surrounded by his cotton
bales, which VIII not aid him In appcasng the demands
urgent and suffering creditors, and poor humbled King
Cotton finds himself PROSTATE and unable feed cothe
@ IN any way provide for the necessities comforts OF
MS most opuent and prominent subjects The arguments
by which Mr.. Secretary Memmnger arrives at his pnor
ING the cotton loan the expense and difficulty in sor
ing protecting and taking Of the cotton the danger
81 inviting INVASION conscaton, and ia lieu he calls
On the patriotism Of the Southern banks extend the
circulation OF their rrodeemabie issue the relief Of
the planters. The whole truth is secessonsrn has
devastated and destroyed all commercial value in
The South. Tho Union Bank OF Tennessee stock was
selling in philadelphia when South Carolina went out at
HIS it is freely offered in louisville for so cents ana
can likely be bought for As less IN March last tho
Southern states had about one hundred and
twenty seven millions IN gold and silver in spite OF all tho
watchuness of the Confederate
has run down to ninety or TO hundred millions nj
most and notwithstanding the vigilance OF the govern
ment II would have been much reduced had II not
oeeh Tor the TACT That an unusual amount Of sterling ex
change was held by the banks which state of things
grew out Of the fact that the banks stopped specc nav
Nent early in hcseason and consequently thew did not
remit their exchange 10 New York cashed us usual
Tor the purpose Of reeemng their circulation and what
ALSO tended TO Keep the exchange 10 the country tho
bwer than it has been but once in twenty 1--WE Years
reaching the depressed point Of 90 93 when the real
par yalamg the sovereign at a S. the standard by law)
1854. Intelligent men have been heard 70 express
. conviction that from tho pentifulness of
sterling exchange the Conederates must be in posses
son OF monetary aid from England. Such is not
sne from the fact that the great staples OF cotton
snd tobacco At present in the South without price or
eAte. II England were aiding them it would be by adj
ysnoes on these commodities. which would consequently
nave price The facts in the that sterling ex
change appears to be plenty than IL really is as the
banks cannot get the coin into the country in exchange
Tor IT, and from the further that yery large
are being drawn for shipping cotton 70 Iivery<oi
from the South has realized immense profits in many
csses over 100 per cent and rs they only what
<ne vaue OF the cotton was when shipped hence they
have the balance 70 draw against now 4 banker II
Louisville tells OF sharp practice OF the Nashville banks
n redeeming their checks on New York which were dis
nonored The bank held their checks for their own notes
~ money at 10 per cent premium and now
when they returned they will only return the curren
y paid for the exchange well knowing this is worthless
% the holder hero but TO facilitate and obge the dis
appointed customer they will frank sterling at 100 which
they pnrch ased in April at 93 to 95.
ADDITIONAL SOUTHERN ITEMS