Daily Nashville patriot. [volume] (Nashville, Tenn.) 1860-1862, 1861-09-13
From the London observerl
The Resources ofs.the States,,-s orth-
eru Depeudcnce upOn the south.

From the London Observer
The Resources ofs.the States,'-sO ORTIZ
ern Dependence upon the South.
Whenever any of the great bankers of the
world give currency 10 Government securi-
ties, they scrutinize deeply the natural
resources, the population. the debt, and the
general standing of the nation desiring to
borrow, as well as the purchase for which the
sum required is to be expended and make
their calculations accordingly.
Hitherto our transatlantic relatives have
been particularly fortunate in their applica-
tons to the great money centres, and what
ever demand they have made upon the purse
strings of the capitalists has been handsome
ly responded to. The great political firm OF
the limited States of America" has enjoyed
the very best credit and has, therefore, al
ways been enabled to obtain what mon y it
wanted on the most favorable terms. Almost
free from debt, and at peace with all the
world. it has been prosperous; Nature has
favored it with every soil and climate; its
mineral wealth Is very great, and its agricul-
tural products various; its commerce has
whltened every sea, and no nation within the
historic period has risen so rapidly in import
ance. A vast change, however. has taken
place; many of the partners of the great
concern; and, although the remaining MEM
bers of the establishment continue business
under the old firm at the old stand IfOr the
present it becomes necessary to inquire
whether the capital left in the house is not
entirely too small for such large and hazard
Gus transactions as Mr.. Lincoln has entered
into. We say us, because Mr.. Chase has sug-
gested that large portion of the proposed
loan can be contracted for in pounds sterling,
wit nj vahla in I in n
accommodate British capitalists. Assuming
that our ..strict neutrality" doctrine will
permit us to subscribe to this loan, what is
the strength of the party desiring to borrow
the amount in question? 1t is well known
that the American States progressed very
slowly during the first twenty five years of
their existence as confederacy, and that
| they in no manner began to develop them
selves until the cotton crop gre1o TO be of import
ance to England, France Germany and the great
staple became the king Of commerce. This fact
gave the United States a financial credit with
European nations thai they otherwise would
not have had, and has been the true lever of
their prosperity.
So dependant has the North been upon the
South that the ships built in the New England
States have been constructed out of timber
cut fr IN the forests of Delaware, Maryland,
Virginia. North Carolina and Florida, while
their freights have been derived principally
from carrying the raw material outward and
northward, and the manufactured articles
homeward and southwark. The exports of. the
South haze paid for eigte,aths of the imports into
the Northern cities. The South has purchased
freely of Northern imports and manufacture
ers; has patronized Northern hotels and wat
ering places, and have sent her children to
Northern colleges and schools. But this
schism that has been created will naturally
change the order of things. Ships will be
built In the Southern States where there is
timber and iron in abundance; manufacto-
rles will spring up South of Mason and Dix
on's line, where there is the very finest water
power, and where coarse fabrics can be made
just as cheap as in Massachusetts,. Imports
direct from Europe will go on in an extended
scale, as free trade is cardinal principle
with the SOutherners. Colleges innumerable
will be erected; Baltimore, Norfolk. Charles
ton, and other cities will become the seats of
learning, of arts, of sciences, and of COM
merce. The climate of the South, moreover
is so diversified that it will grow as much
corn, and feed AS many animals as required.
without interfering with the production of
cotton. rice and tobacco-Virginia, indeed,
having always been a large exporter of wheat
and vegetables to the Northern S iates.
There will be an exodus from the North to
the South as soon as matters settle down.
Instead of the census figures standing two
thirds in favor of the North and one-third on
the side of the South. they will probably be
reversed, as the Americans are migratory
people, and a slight expense will transport
them from the North to the South. We have
witnessed in our day the rapid advancement
of Australia and California, notwithstanding
the enormous cost of reaching those coun-
tries, and can readily imagine the speed with
which great cities will be founded and built
up in the South.
The investments of Northern capitalists,
being in the character of securities that are
based upon the commercial prosperity of
their locality, will become valuelesS with the
decline in trade; Wall street, that now sways
the financial sceptre, will then lose its power,
and some new Lombard street, will rise up
in the South; and the commercial credit that
England has for SO many years lavished upon
the North will be devoted TO that quarter.
There is nothing whatever produced or man.
ufactured in the North but what can be cul-
tivated or wrought in the South; but it would
puzzle the people of New England to grow
cotton or rice in their cold climate.
In questioning the credit of a concern, it is
customary to look at the individual partners.
In doing so in this case we are little ehary
of such states as Pennsylvania, Michigan aud
Indiana, but we need not go over their past
conduct. The present credit of some of the
States is not very good at home. The Illi-
nois war loan has been withdrawn, there be-
ing hardly any bidders for it. The Indiana
war loan has been taken at very low rate,
and the Pennsylvania war loan, announced
by the authorities as all taken at par, is be-
lieved to be mere sham.
We are not aware that the new firm of the
Confederate States" propose borrowing any
money from US; they seem to be in a COM
Portable condition as to financial matters,
their crops of all kinds are represented as be-
ing excellent and their labor has not been
intertered with. Their army, differed by the
most accomplished men of the Federal SER
vice, is comprised of individuals who, be-
tween the months of May and November,
have generally had very little to attend to,
and the wealthy portion of whom have, on
all former occasions, spent their time and
their money, during the summer season, at
Northern cities and watering places, proven
bially the most eXtravagant on the face of
the globe. But by the turn of matters this
year, this usual expenditure is lost TO the
North and gained to the South, and it is esti
mated that between the rise in the price of
cotton, caused by the fear of concerning next
seasons crop not reaching market, and
the economy of the South, their whole expen-
ses for the war will be met. The Southern
ers not having been a commercial people.
will lose nothing by bad debts or by invest
ments, as their property is not of the same
character as that of their antagonists.
Few persons believe that the South can be
subjugated, and every one sees clearly that
the North will come out of the matter very
much damaged.
AS far as reputation and Suspension are
concerned, both sections OF the iate Union
are pretty much alike.
The British capitalists have to complain of
the delinquency of three Northern States,
five millions of people, and of a
like number Of Southern States, containing
eight hundred thousand inhabitants. Penn
sylvania, however, subsequently, paid up her
interest, and the Florida affair was settled by
arbitration. So stands the credit of the
=" States.n
The Camps on the Potomac.