, 1869-09-01

TIE COTTON CROP AND TIE CURRENCY

WEDNESDAY, SEPTEMBER /, 1869,
TIE COTTON CROP AND TIE CURRENCY.
Although the people Of the South a,o
richer this year than they were last, and the
total supply Of cotton wilt be at least half
million balcs larger, the most rcceu. circu-
Lars and estimates Of the leading Londo1
houses Indicate that tho quantity nov being
offered for shipment is only about half that
onered at corresponding dates last year.
1hc South Is almost wholly FREQ from debt.
Its ante-wAr aud war dcbts are wiped out.
1t has incurred almost no debt since 1865. II
isp"rcAasing few supplies. Tho old system
OF owing for the capital used IN producing
crsl, year in ndranca Of ita p.oduc-
tion, is superseded It liz net under the
sa'nc pressing necessity as last year to sci!
Its cotton as soon aa It is baled. And the
effect t*eems 10 be- that thus far cotton is
moving outward at Int about half the ratio
Of last year. Meanwhile the Lowell mills
are running on half time, and most Of ,le
manufactures are stopped CT running on
abort time-in part, perhaps, from ovcr-pro-
ductlon Of goods, hut largoly, without
doubt. from the failure Of the cotton 10
Come forwnrl. Az tho cotton season ouly
fs'fly Commences With sopsombcr, the MP
Prehension fell III Eastorn commercial circIoH
ut the alleged disposition Of tic planters 10
Withhold tho crop until very la,o in tho
RcaAp''. antl dcranyc tho foreign crchnnyos
"! III" country l,y abort supply OF our
chief export, would eoym norvuua, II not
prcmnsnrr. Such MI ,snoaHinrss, f,owoyor.
lrovailn, AMI tends t"war.l uncertainty nust
nssHn"tson In MI &f.ll;ntcd bsnuchcs uf
trndr.
Thin t"nd"nry il inescarn,l by lhr moral
e"FtasnsF TINT very largo pnrtion oi thu
Ercnnhaekn nfitrcl into llu Huuu.osn
Slasua for the purchase nf lhn c.,,tua crop
will noi return, Int will 10 ulmur,r, untlrr
ths, int'aanc" II thu peculiar preferences tho
Suuthrrn people have come 10 mAnifcnt
sithin Tho taht year fur the greontacka M r.
permanent Investment. The effect Of this
form n! popular contraction Of tho currency
las nlready hecu very marked upon EASTERN
and Sorthcsn money markets, and has no
little to do with tho general prevalence Of
dull tines. Though, other things being
equal, such contraction Of tho currency
Touid enhance its gold value, reduce the
premium on gold, aud bring us
nearez to specie payments. Again, The
West feels in still increasing de-
gree the effect Of tho withdrawal Of
thnt Southern demand which it WIS
expected would take the place of the
war demand for its agricultural products.
Before the war, the demand was generally
active, because the South did not raiso
It's oTn food to the degree it nov
does. During the war it was still
more active. But since the war tho
demand fell of, hrst for mutton and wool,
then fnr beef, breadstuns nnd corn and as
the South, within three years past, has be-
come more esen-supporting, the West aud the
Northwest have sustained q decline in the
prices of their leading staples which has
kept them under steady fuancial pressure.
While currency is growing scarcer, and yet
Its gold value is not increasing, its pur-
chasing power in most Western products is
huch greater than it Was three years ngo.
We are suffering the decline Of prices upon
our agricultural products which VIC had e1-
fected rs result Of returning to specie
payments, without having achieved single
step of progress toward specie resump-
tlon- We have nominaily an abundAncc-i
E., an unioanable surplus currency seek
ing Investment nt ordinary rates on COM
mercial loans. Some Of our banks have
Tad for months from one to two millions in
this way. But so long Els the productive
interests. are bringing forward their pro
ducts upon declining market, thoy
Cannot become healthy and re-
Fponslble borrowers OF capit.I.
Currency is nbundant for investment on
those securities which do not depend On
the profits Of production, but on those Of
speculation. 1t is an unhealthy condition
OF industry when the speculation in values
already produced il attended with less risk
thAa the investment of capital for ptoduc-
ing new vafnes-when, in short, it is more
sale to live by betting than by working. If
1e South should delay the sale of its cot
c1op to very late period, it Will be be:
~auso she has not much to bug except land,
OF to pay, and can afford 10 hoard a con.
Siderable portion Of the price. The present
low prices Of Southern lands very likely
account for the hoarding process now
gong on. Tho Southerners know that con-
tracts calling for payments on real estate
can always be met by the existing greer:
backs. and the prospective riso in
lands, or the dangera Of loss in
case Of their inability to make Payments
On their purchases, more than balance nuy
loss OF interest that may arise from hoard.
ing the currency. At MI events, the prob
able absorption Of sevcnty-fve millions of
currency by the South, upon tho sale Of its
next cotton crop, is fact Of no small impor-
lance to the fluancial condition Of the North
and West during the coming year. The
delay OF the South 10 forward its crop 10
market will tighten the money market &C.
s1ously by tho lazge quantity Of bonds and
guild required for adjusting our foreign cx-
change. These two elements depend it
Iart On the laws Of trade, and 10 that extent
are hey ond the control of the government.