Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1861-12-17
THE COTTON BANK.

Tho ~eKpeT mental pTQJetL OF z S"'"'H h4-N
rou uD5gr confederation in the state LegisLa-
turs p-omises 70 find as little favor with planters
rl otber portions OF the community. Peo-
Nh. af every class. who have the public welfare
3. heart. are opposed to proping up wildcat
b,,t. without a dollar Of capital, through the
e7--v fundamentally of hasty legislation. It
ui1 nat do TO conceal the hideous features Of
.sa e5Bceru. with its rotten defects, under p
cloak Of good intentions. a scheme fraught
with such tremendous evils, and as yet a doubtful
and uul.ed experiment, is bound to prove a fail
ure for want of that popular confidence which is
j. the very likelihood Of aourishing monetary
Institution.
The cotton and tobacco planters want to be
relieved. # is true, but when asking for bread
taey are by no means willing TO receive a stone,
mvhen craving a fsh to swallow s. serpent. A
cotton bank. under the control CT mouopolsts,
who dole out theirwortbless shiuplasters at " rea-
s5aale premiums, is more apt to comPheate
and multiply their embarrassments than to mIti-
gate them. They viii fnd their cotton hyPothe-
ca.s8 20 an irresponsible corporation Of licensed
speculstors, and they themselves with hands
fun Of unc11ent nag money, representing moth
irg on the face Of the earth but their own stupid
guu.b.i.y. Is this the measure Of " relief that
planters desire WIZ they not deem its offer a
severe reflection upon the Intelligence OF the Leg.
islsure, rather than display their ignorance by
any hot haste in taking advantage Of its awk-
ward provisions
The country is, further more, scarcely ready
70 see the cotton-factorsge business, which has
heretofore been open by competition TO every one
desiring to enter upon it, virtually thrown
into the hands Of m~onopolists by legal enact
meaL The cotton trade is temporarily susPen
dec BY the war, and hundreds Of factors hsv'
sAouldered their muskets and gone to the field K
fEAt the battles Of their country. Shall then
places be supplied by a score Of cOrPoraSorsr
who are empowered to fill them an Indefinitely
long period, and through a season which, viii
the breaking of the blockade, promises to b
brsksr than auy previous one
The principle is automatic that a certain
amount OF currency IS necessary to do the bust
meas Of the country, and the contraction or e1
pausi1n Of that amount VIII cause the averagI
value Of bank notes TO rise or depreciate a. tn
case may be. Our various banking institution
have made large loans to government, which ar
now out "a the channels Of trade. Government
itself, is making issues Of Treasury notes ever.
day .hst more than compete with the obligation
Of the best banks. These viii continue to b
issued TO meet the necessities Of the army, unit
the full amount authorized by Congress j
reached u such q case what viii the wildca
currency Of banks. without a dollar of bulioI
il their vaults, be worth Commencini
81 c discount Of fifty per cent. on tn
sst day Of issuance, il !. not quite reasonabl
% believe that in twelve months tim
they w7uld 20 begging at from fifteen /
twenty cents on the dollar To those who uI
dsrstand The theory Of banking, and the uu
basis Of 8 sound and healthy currency, this
no mere speculation as to an Improbable result
i is a danger almost amounting to certainty.
Our best monetary institutions viii find GOO
management. and & rareful regulation Of Il
auognt OF tbeir issues, necessary TO take the.
safely through this crisis. Despite the fact to-
their notes represent a certain amount Of speci
they have deprecated. a Cotton Bank-wit
ont o8pital, without a dollar Of specie, and u
sustained even by the liability Of the corporate
controlling IL. would not last sixty days. II
fact that i was an irresponsible concern wou
speedily become known, and the eonseque
avoidance Of is notes as a financial iepro
would be tie certain result, ending ultimately
BANKRUPTCY and general collapse.