The south-western. [volume] (Shreveport, La.) 1852-1870, 1868-11-18
The South to Bring About a Commercial
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The Southern States promise to be the motive power
by which capitalists and commerce shall be dragged
out of the rut nwhch they have been stagnated since
1865. Last year the South was in debt, and its sur
plus money was mortgaged to aud swallowed up by
Northern capitalists This year they are comparatively
free from debt, because their credit is limited Their
crop of cotton, tobacco etc, are likely realise in
money value more than ever, at least $500 0e0 600
The Southern crops differ from those of the North and
West essentially far they affect money mar
kets, inasmuch they command specieinthe markets
Of the world, even on their own soil Europe and
America compete to buy Southern products on South
soil, for cash. at the option of the Sontherner In
greeubacks gold Besides the $500 900 900 Of pro
duce saleabe for cash. in the markets OF Europe ard
America the Sonthernefs owing to their poverty and
the crushing policy to which they have been subjected
by Congress- and tile sentiments which swayed North
capitalists, have this year raised corn wheat and
other food, which will leave them with larger amount
of surplus cash hand than the South has ever
in any one year since the foundation of Republic
The Southern States before this year dependent
on the Western States for the bulk of their food bur
now they not only wholly Independent of
them in this respect but they have commenced to be
exporters of wheat and -four. The Southern States
will this year realise from their products cash
plus and net profit and above all their expenses
of living of at least $60000,000 II is use shut.
ting eyes the fact that there is strong popular
prejudice against the national banks throughout the
whole Southern country, SO that the New York City
bank managers will do we'll to prepare in time for the
absorption and retention in tie South by private hoard
ing ola least $50, 800, 000in green backs and per-
haps some gold The New York banks are not in the
condition they ought beto respond to this drain for
$50 600 in greenbacks. TheSouth will not be put
off with national bank notes, owing to the strong pre-
JUDGE which exists against them there The temporary
locking up of greenbacks by stock gamblers limited
about $40, ooo,ooe, is tfing importance compared
with the locking up Of $50 0a00e0 greenhacks in the
South. Reference to the contraction of greenbacks
by Mr. McCuoch will awaken some doubt as to wheth-
er The aggregate amount in circulation will besuf
eientt respond to this Southern drain for $50 Geo.
without producing financial crisis in the North On
October /, 1865 the amount Of legal tender notes in
circulation was s67S, I29,948 and September / of
this year they were reduced TO S3S7 29l legal ten
dera, and $62205, 600 three per cent. certificates
making the total outstanding legal tenders $t5902s
2s, showing decrease Of a2s 600 600 since October
l. 1865. These startling facts. They are the ope
ming up of new era in financial affairs in which the
Southern States destined produce revolution in
banking and currency system for which every pr
dent banker and merchant viii prepare =" Bank con-
traction enforced and inevitable is near at hand
from this drain Of greenbaeks to the South. %