Daily union and American. [volume] (Nashville, Tenn.) 1865-1866, 1865-12-27
A MEM SCHEME.

A New Orleans correspondent gives the
following scheme for raising capital and re-
organizing the industrial interests of the
South:
The great want of the planters is capital.
10 use the words of an eminent Georgian
the value OF the negro has buried itself in
In the SOIL In the first place, the negroes
are gone from them, as so much capital for
merry owned, and now there must be
continual outlay for hired labor, and no
means OF reimbursing until the new crop
comes on 1t is pretty safe to say that nine
tenths OF the planters, however wealthy in
lands and houses, are absolutely unable to
pay their hands from now till next October
without borrowing. Secondly, at least one
half the mules are to be replaced. They are
gone, their bones lie bleaching beside many
an army trail and in many a corral. The
cost of mule in Louisiana is, to-day, very
high. Lastly, many of the sugar plantations
have lain idle for four years past, as also
many of the cotton plantations in the upper
part of the State. Here are three heavy de-
mands for immediate outlay, and the plan
tiers can not, from their own resources meet them.
They must borrou Where shall they Dor
row? Capitalists in the South are compare
lively unknown. Then they must turn to
the North. But the great difficulty here is
that there is want of confidence The
capitalist in New York or Cincinnati, re-
mote from the scene fears high water, he
fears the worm, he fears too much rain, or
he fears drought, or he fears bad manage
ment and unreliable labor.
This objection is met. There has lately
been formed here a Planting Agency Associ-
alton, having for its President Mr. Moses
Greenwood, and Secretay, Mr.. Edward Dur
rivea. On inquiry, learn that these men,
particularly, as well as the gentlemen COM
posing the association, are persons of the
highest personal integrity and worth, whose
names, wherever they are known, are an
abundant guarantee for thorough financial
soundness and honest management.
This company makes the following propo-
sition to the capitalist: Acting as a medium
between the planter and the capitalist, they
procure from the former and turn over to the
latter mortgages on the plantations, and
liens on the crops sufficient to secure return
of the principal and eight per cent. interest,
as a sure basis. In addition to this, they
contract with the planters for one-half the
net profits of the crop in return for the use
of the capital, and one-half of this profit
(one-quarter of the whole crop they turn
over to the capitalist. This is only for one
year, in order to enable the planters to take
a fresh start. 1t i. computed that one-half
an average crop will pay the capitalist sew
enty-fve per cent. profit.
But, it will be asked whether the planters
are willing to enter into such contracts l
am told by member of the company, that
they have already had applications from over
one hundred planters, who would employ, if
they could obtain it, over S., 600, 900, simply
to stock and set in order their plantations
and sugar houses. Surely here is sufficient
encouragement.
CALCULATIONS.
The following calculation is made by an
old, practical planter Of this city, of my ac-
quaintance. 1t is in the case of a cotton
plantation lately bought by company, and
which consists of 1880 acres, 800 of which
are cleared and in order. For the planta-
ton they pay $4,000, of which $4,000 is
paid down.