The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-01-23


of making themselves heard, and final check
be given to the demagogic sway that has lately
prevailed. II il cannot be done with effect any
sooner let the State elections which will speedily
take place in New England, be the point towards
which conservative citizens shall rally, to rescue
the country which they have built up, from the
chaos into which sectonaism, inspired by those
who find their profit in whirlwind and desoIa-
ton. would cngulf its prosperity.
New York Bankers and the Movement OF
| the American Cotton Crop.
When the banks Of New York concerted
measures TO preserve their specie status, aud
thus associated their credit and wealth and in
fuence for the protection of the business in
terests Of the city, they did good thing, and
did it thoroughly. The effect of their action was
Immediately manifest upon public confidence.
We have so fur weathered the storm We have
been able to hold On to our specie, and TO give
to the revolution Of 1860 a direction and a
significance which, If used Alright, may be turn
ed to the good account of the whole country.
But all was not done, necessary to do, by the
protection Of our specie basis and the preser-
notes. The crops in the two great producing
districts had to be moved forward Prices and
political circumstances acted favorably on the
grain and provisions Of the West and North
west In consequence we find our trade rela-
tons with the grain and provision producing
States in a healthy condition. But we are not
exclusively grain growing nation. We have
another interest, an imperial interest, and
one which requires on the part of our
bankers the utmost amount of attention which
they can bestow upon it. New York has for
her own, and as the medium for European ac-
count, and for which she is responsible, a ire
mendous stake in the cotton States The i'm
mediate movement Of the cotton crop into the
foreign market is a question second in import
ance only to the disruption of this Union
For upon the immediate movement of that
credit of those who have transactions at the
South, and it involves also the question as to the
future position of this city as the money centre
Of the world.
The tendency of the political revolution
seems to be in the direction of permanent
dissolution of the Union, unless checked by
Cancellation and compromise. The indications
as to public feeling North foreshadow fixed
determination to uphold the government. If
by coercion, the South will meet the policy
with armed resistance. How the struggle will
end, H once begun, we do not purpose now to
consider. 1t is enough for us to know that
nearly three million bales Of cotton will, in
such an event, be locked up, as valueless as so
many bags of sand, and that general bank
rupt law in some form at the South will, in all
probability, sweep away the enormous debt
due to New York. Our great customers in
Europe cannot do without this cotton, our
bankers cannot suffer it to be moved through
a new credit arrangement over the head
Of New York, because it is already
hypothecated here, and our merchants cannot
afford to suffer such loss as is involved in the
practical reputation Of their outstanding debts,
based on the conversion of the present cotton
crop.
As the case stands, there is danger that the
American cotton crop, to the extent of
nearly three million bales, will be, through
variety of causes, held back at the South
until a cotton famine sweeps over Lam
cashire, in England, and the other cotton
consuming districts of Europe, or until
it is moved by foreign Intervention hos
tile to our rights and interests The
basis Of credit upon which the crop is
usually moved is now so impaired that capt.
tai is indisposed to participate in a security
which in ordinary times is very desirable. As
time passes and circumstances become more
alarming, the basis Of credit which is now only
impaired will be utterly destroyed. Before
this new calamity shall overtake US, New York
should without delay provide the needful plan
of execution for moving the crop. Once moved,
its ready convertibility in Europe would
reimburse u.s. and settle the accounts now
due to our business men in the cotton
States we would also keep control of the
exchange medium incident to the trade.
In the crisis of 1857 the banks
took steps to set the Western produce
in motion, and with excellent results. 1t is now
their duty to concert measures for moving the
cotton crop.
If the financial control over the cotton
trade in the future is to be abandoned,
we should in all cases realize the advances
made on the present crop, and enable our mer-
chants to realize on their sales made upon the
credit Of that crop. If our readers desire to
know the amount OF this Indebtedness, now in
| danger Of being entirely lost, we have only to
remark that it may be set down as represent
ing seventy-fve per cent of the value Of every
bale of cotton produced in the United States.
The Poor OF New York N THE CAUSE.-THE
official reports Of the Commissioners of Chart
| ties and Correction show that they have now
| under their charge s,777 persons as inmates Of
the city institutions, al increase of 4s5 over
| 1860, and of $50 over corresponding
periods. Statistics as to the condition of the
outdoor poor are still more suggestive Our
| reporters have ascertaned that the distress