The south-western. [volume] (Shreveport, La.) 1852-1870, 1869-12-01
Gold for Cotton.

The advocates of gold for cotton in the South, find
powerful auxillery in the New York Commercial and
Financial Chronicle the ablest commercial paper pub
shed in the North. This Journal in speaking of the
desrableness of return to stable basis of value,
says there is at present want of xedness and alb
sence of certainty in business transactions which all
deplore and which viii continue while the value Of
greenbacks daily and almost hourly changing OF
course, as the purchasing power changes, day by day.
the spirit of speculation is kept active and unhealthy
tone prevails in all commercial circles Our Northern
contemporary says:
In no branch of business is this continued fuctua-
ton more unfavorably felt than in the cotton trade
There is now no large mag as formerly in prices be-
tween different countries. The telegraph has brought
this market and Liverpool, and all other cotton mar
kets so closely together that commission is about all
the merchant can secure in any transaction, and a
slight in gold can more than wipe out this leav-
ing loss the net result of the operation In fact
great has the risk become that the careful shipper
must buy his gold first and then his cotton. Purchases
also, for future delivery Ia legitimate businessD are
rendered, from this cause, almost uncertain
a ticket in a lottery.
These facts have long led the Northern cotton mer-
chant, especially those engaged in foreign business,
to desire freedom from present unstable currency
To await till return specie basis, may require
the continuance for years of the existing difficulties
whereas a very simple and immediate remedy so far
this branch of business is concerned may be found
hereafter in selling cotton for gold that is having
currency quotation, but simply quotation in gold
The South, it thinks the proper to enter the
wedge with its $780, 900, 900 worth of cotton, which
goes aboad as the medium of settling our exchange.
1t further adds:
Entering thus with controlling influence into our
foreign commerce, how essential this change becomes.
With it there would be uniformity in price at New Or
leans, at Mobile at Charleston at New York and at
Liverpool. Purchasers would know what they were
buying and producers would know what they were
selling. On the other hand the present selling cur
rencv price, stated above must always be first adj
justea the gold value at the moment of purchase,
and even them before the transaction is closed it is
clouded, and its results are, perhaps, materially
changed by the varying humors of the Gold Room.
With every hour the figure fuctuates rise or fall
of several per cent. may occur in day. in week.
Gold rings organized whose operations utterly par
alize foreign commerce. and spread uncertainty
and doubt become the rule, where harmony, order,
stability and fxedness should govern.
The South, also, is now out of debt and, for this
reason in an excellent condition to inaugurate this
scheme and put it into effective practice The old debts
of the South have either been paid or, where they
could not be thus quidaed, they have been wiped out
by the Bankruptcy act.
But it may be said that the step we have indicated
is step towards the resumption of specie payments
1t is certainly movement in that direction and for
that special benefit to the North. Its ufu-
would be felt in the North and West, and would
tend modify and render more certain business trans
actions in all parts of the country Besides this step
is rendered all the more necessary in view of the pos
be action of the Supreme Court of the United States
in declaring the Legal Tender act unconstitutional.
There have been intimatons that the opinion of this
court would be adverse to the legality of the act and
there very many who believe that the delay in rem
dering decision is due to the apprehension of the
court of the effect of sudden announcement of the
conclusion reached by them. Be this as it may how
ever, much of this apprehension would soon be found
to be groundless if good start already made in
doing an important branch of business upon specie
basis There would be least one solid rock of real
credit and value upon which commerce could be re-
erected, and which would defy whatever tempest aud
disaster might from any cause result.