The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-05-22
THE COMMERCIAL coHulTluu OF the SOUTH.

TO THE EDITOR OF THE HERALD.
The failure Of the First National Bank and the Bank
Of Commerce at New Orleans following close upon the
suspension OF several large firms in the seaboard cities,
circumstances calculated alarm the public as to
the stability Of commercial firms the late rebel States
whose interests less wrapped up with those
Of Northern and European houses
For many months much anxiety has been felt as to
the financial and commercial interests OF the South, and
many have prophesed general crash but there is still
hope that 1t may be avertcd The collapse Of the rebel
lion found commercial affairs In chaotic state and
many millions of Northern debts still standing against
Southern merchants The promptness with which most
OF these merchants forward and met their oblga
tons contracted before the rebellion gave
70 our importers OF their honorable intentions, and
consequently their old customers orders filled on
long credit Many firms who had not been in the
Southern market anxious % compete with the old estab-
lshments, made large consignments time 10 Southern
cities The Southern dcalers trusting their ability 10
meet their obligations launched out into what they
sdered safe speculasoDs To do a strictly cash business
the impoverished condition OF the country mpos
sble; the course generally pursued TO advance
provisions and money TO planters taking lien upon the
crop security for their indebtedness Had the cot
ton and other staples yielded well In ls65-67, this
system OF mutual benefit would have worked admir-
sby-the producer could have paid his hands refunded
the money advanced by tho Southern merchant and had
a respectable margin which to work another year; the
large amount due the importers would have been col
lected, ana the south would have received healthy
start The failure OF the crops, however, has
dsarrangod the entire commercial system OF the Cotton
States the crop barely paid the expenses OF labor
ploycd To produce IT, and under order from the Freed
mems Bureau, the freedmen had first lien upon IL;
nearly the entire was swept away by thcm and the
planter and creditor the sufferers Willing the
southern merchant may he to pay his debts he finds it
impossible to meet his obligations TO the importer and
hence crash Is imminent
As evidence OF the difficulties 2nder which all
mercia firms suffer- the fact may be nsanced that
importing firm IN this city have 81 600 600 out
standing debts In the South that could be collected had
the cotton OF the past two proved bountul
representative OF the firm made n tour OF the
South, and succeeded in collecting but Q few
thousand dollars Since the closed over
5000 600 have been invested in the planting
interests Of Mississippi, Louisiana and Alabama
by the frm represented by General f. j. Hcrron and
is to he presumed that but little has been realized the
amount invested. This s but 1.-THE OF the Northern
capital that has gone South to develop the country, and
which yet has not given return. II becomes
serious matter Of consideration to what the results
of past obligations immediately. commercial panic
cannot be long STAYED Off and when il Is not
the South alone that will feel the shock II extend
North to those firms t,a1 identified with the South.
trade, many Of which will in all probability be
ried down with the crash.
There TO be but solution OF the difncuy
that presents itself and that Is for Northern importers
pause enforcing their claims upon their debtors until
the OF another good CROP whom II is safe 10 pre-
that all parties by careful economy and caution
WIN be able TO meet their obligations and healthy
system be infused into the commercial circles of the
ton producing States. IMPORTER