Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1871-09-15
COTTON.
Result Of the ~nteryfe Of Leading
Cotton Men n 20 h Policy or I'm
policy of the New Rules
Promulgated by h
Banks,


Promulgated by the
The following rules which have been
promulgated by the banks to go into
ettsct on Monday, were the cause of sew
eral interviews which q member of the
APPEAL editorial corps had with leading
cotton factors yesterday;
"ReSOiUed, That from and after Monday,
18th inst, in order to invest our purchases
of cotton bills with a security somewhat
commensurate with the magnitude Of the
interest involved. and to the end that the
practice ofthe different institutions gov
erning these transactions may be more
uniform than heretofore, the following
regulations shall be enforced:
81. All bills or drafts shall be signed in
the proper name and style of the party or
firm drawing, and not as broker, buyer or
agent.
go. Bona-hde bills or drafts must be
actually delivered to the bank before
checks of the buyer will be paid.
$50. When bills of lRding accompanying
exchange are deliverable ''to order"
special assurance must be effected. in
| Memphis or elsewhere, satisfactory to the
bank; and in oil cases., whetherto order or
otherwise, the bank shall have due evil
dence OF proper insurance.
= 10 a AAdMCA VI III ~ 10 O4RIlNRo
to furnish satisfactory assurances OF their
authority for drawing ;"
W. B. Gslbreath, Of Union street, was
the first cotton man spoken to on the
subject. He said that the "new de-
psrTure" in finance did not meet his sp-
proval. He said it was calculated to work
a hardship to the factors. 1t will operate
this way. We will, as q general thing,
have to wait from six to ten days before
we can get our money, after selling COT
ton. A buyer may to purchase five
hundred bales of 8 certain class OF cotton;
he may be three or four days making up
his list; three or four days more will
elapse before it can be shipped; and
not until it is shipped, and q bill
we get our money from the banks.
We are in the habit of advancing
to planters upon cotton. With this new
arrangement we viii often be run dry,
and shall be compelled to draw upon the
banks n psy them interest when we
wish to make advances upon cotton. The
arrangement is got up for the purpose of
making interest by the bankers.
The Messrs. A. ]. Roach were of opin-
ion that it did not affect the sellers at all.
The operation of the new rules would
concern the buyers only.
Messrs. B. Bsyliss & Co. were in
favor of the new arrangement. 1t
was only a proper protection to the
banks against what are called guerril-
las in the cotton market. It will
have the effect of putting the
trade into tbs hands of responsible par
ties. The people who cannot comply with
the conditions imposed by the banks for
he'll own protection, ought not TO be in
the trade at all. The banks have been
suffering from the effects Of irresponsible
dealers,
N u;1sr,o, at ~ zaiJ that tba
bank arrangement, which was to go into
effect on Monday, was a "good thing" It
would at once do AVA with this guerilla
business. We have been in the habit of
risking more in selling cotton than in
making advances upon it to the planters.
We advance to men who nave something
to stand on. The advances are made in
small amounts, here and there, and
you always feel sure that you creditors
won't all Ego up' in a slsp; but in q day
the whole crop that has been turned over
to you by a dozen planters is risked in the
hand of some irresponsible party, who
buys your cotton and has it away out of
the State before you get your money.
This new arrangement viii be better in
the end for ali parties.
RepOrter-Don't you think, Mr.. Hills
man, thai it may have a bad effect on
the planter?
Hillsmsn.-No; it will secure the plan
Whatever secures our banks will
secure us, and when we are secure the
is safe,
Messrs. Taylor & Rutland were
OF opinion It would seriously
the course of the cotton
It will cause delay, which will be
Injurious to the fsctor, and consequently
the planter. The state gives a lien on
cotton for fve days after it is sold; accord
.ng to the terms laid down in those new
regulations, one can hardly expect to get
he money, except in some odd cases, IN
IL after that time, and all property in the
,Otton passes into the hands OF the buyer.
a man comes here to buy q thou
and bales of cotton. He takes two hun
ired from me, and it is delivered to him.
he can go around the city making up his
ist, for five or six days, until the cotton
has gone beyond my control, not paying
or it, on the pretext that he could not
ill his list, snd he did not want
10 ship until he had all his cotton
l could not expect to get the
money because the banks had made and
igreed to the arrangement thst the check
would not be paid until the bill of lsdiDg, ]
lbOwing the shipment of the cotton, was
tent to their office. The worst evil is the
ielay in getting money for the cotton,
md the consequent gripping of opera
ions between the factor and the planter,
will result from the adoption of
.hese new rules.
Messrs. Gay & Co. said that the effect of
he new arrangement would be serious
lpon most small factors who were
n the habit of getting small lots of cot
on and selling them quickly for prompt /
payment. Those small planters who bring
II send in q few bales of cotton at a time,
to get their money the same day it
s brought here, if possible. Quick sales :
md quick returns are absolutely neces- :
airy for them; M if they cannot get it !
lere, they will take their cotton to Louis /,
lille or st. Louis, and thus the trade will !
,e gradually turned from his city. The I
.enersl effect Of these new regulations
will be to delay payment, and nothing '
be worse for us than this. l
Dashiel q Co. said the arrangement was
rsd. They wanted to get the money for 8
heir cotton before it left the bluff; did
lot want to wait till the cotton was away !
n a steamboat or railroad train before =
he banks would pay for it. The new
equation practically says that we csnnOt
let the money until the cotton is shipped :
gone away out Of our reach and our l
light. d
J. L. Verser held the same sort of opin-
On.
Messrs. Howe &Wooldridge thought the L
arrangement bad for the same reason ad-
snced by some of the others. [
Nh. Johnson firm of Busby, johnson & G
o, )gsve a long opinion upon the question,
0 which he said that, IL the effect of the I
arrangement would be such as represent
d to him by q number OF factors, IL would a
g very bad. 1t was represented to him I
hat the banks wished to save interest,
ecsuse, IS it was, the buyers were in the Z
abit Of sending in their checks, from day
day, during the week, and at the end OF c
week made up the account.
Messrs. Price & Terry saidthat it would G
impracticable. There are times
hen the cotton cannot be compressed for g
IN days, or perhaps two weeks, and the d
refuse to take it for days togeth- v
How can factors remain out OF their
honey for three Or four weeks, perhaps? l,
The Messrs. TreRdweu Brothers were of
pinion 1t would work a hardship. The P
ideas in reference to delay, to hard
nip to the factor and planter, and general s
D furious effect, were expressed in that
that we're given by others. s
MIR. Estes, of Fizer, Estes d Co., had d
Iuch the same ideas on the subject.
The reporter visited a number of other II
buses, but not finding the cotton man of
le several firms, he feels unwilling to Y
the expressions OF others connected q
it'll such establishments.
- a.
RATTLE. c.