New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1871-09-01

able, and prOmptnese and energy 1mpera-
tive.
Not less important is it that our banking
capital should be increased for the purpose
of affording additional facilities, not only
for the movement of crops, but for the ex-
tension of trade We do not mean that our
own capital should be withdrawn from other
channels in which it is usefrllly employed
for the purpose of establishing additional
banks, or increasing the capital of those al
ready in operation. This would be only
shifting the burden from one shoulder to
the other. There is no large city in. the
United States where there is less really
idle capital than in New Orleans. Building
and improving are prevented by the con-
slant demand for money in the regular
channels of trade, or by the handsome divi-
dends made by our banks. The latter have
been multiplied until they represent every
class of the community, and drain from
each every idle dollar, employing a large
part of the aggregate deposits thus obtained
in purchasing exchange, or discOunting local
paper. During the business season their
resources, nevertheless, are seldom equal
to the demand upon them. In this emer-
gency, a large amount of private capital is
proftably employed in the street, and, al
though at onerous charges, yet to the public
benefit. 1t has been estimated that the adj
vances, direct and indirect, made by our
factors on the last cotton crop reached
twenty-five or thirty millions of dollars, A
part of this consisted of their own capital,
and large portion was furnished by their
credit, in supplies purchased on time,
and accommodations from the banks
and private capitalists. OF course, as
the season draws to close, and the enor-
nous cost of cultivation, including wages,
food and clothing, as well as agricultm al
implements, machinery, buildings, bagging,
ties, etc, have all been paid for, or settled
for by paper running to maturity, the
pressure increases. The factors credit is
strained to it's utmost tension; his line Of
accommodation at the banks has been long
since passed; he is compelled to renew
many of his obligations as they fall due;
and, finally. he resorts to the street for
temporary discounts at high rates of in
terest. Under these circumstances, two and
three per cent per month are paid on I'M
questionable signatures. or the paper of
houses with undOubted wealth, secured by
solid cOllaterals or mortgage on unincum-
bered city property. This lasts for only q
few months, and some who cheerfully pay
the high rates we have specified for ninety
days, refuse loans for longer period at
eight per cent per annum. The crop com
mences coming in, and from its proceeds soon
relieve the most pressing demands, and
ultimately leaves the factor with idle bal
ances in bank.
1t is not solely for the purpose of facilita-
ting the movement we have described that
we require additional. banking capital, but
to place US upon a less disadyantageous
position than we now occupy compared
with New York, in giving facilities to the
wholesale trade. A cotton bank, for ex-
ample, with a capital of E, 1000, 900, estab-
lished by British capitalists, could not only
cover the present demand for accommoda-
tons on the growing cotton crop, but sup
ply still greater acquisitions, thereby stimu-
lating production and increasing the supply.
This is the more desirable because there is
a constant tendency to concentrate the cul-
ture of cotton in the more Southern and
Southwestern cotton States. Notwithstand-
ing this tendency, our factors have been
compelled, by the experience of the past, to
curta1 their advances on the growing crop,
and planters to restrict cultivation of the
staple, and extend that of corn and the rails
ing of stock, in order to lessen the drain
upon them for Western breadstuffs and pro-
visions. Such bank as we have suggested
would have been the means OF adding not
less than 300, 900 bales to the incoming years
receipts at this port. At the same time our
home institutions would have been relieved
from the pressure of the cotton interest, and
enabled to accommodate other branches of
trade to such an extent as would place it in
the power of our wholesale dealers in dry
goods, hardware, ETC., to offer New York
credits to their country customers. We
have nothing to say in this connection about
our oppressive taxes, for however much
they curtail production, in exacting from
the industrial classes "a large part of the
just reward of their labors, our merchants,
who are their representatives and inter-
mediary agents in the disposal of their pro-
will To for no of
eign banking capital sufficient to cover all
the burdens which taxation may impose
upon it, At the same time, the increase of
banking capital from abroad, would have
the general effect of stimulating trade in
every department ard increasing popula-
ton, so that our home institutions would
find full employment for all their resources
and make no reduction in their dividends.
With or without the acquisitions, reforms
and retrenchment we have suggested, we
have full faith in the steady progress of
New Orleans in wealth and population.
Memphis and Nicksburg, as well as the
Western cities, may Outstrip us in the rapid
ity of the race, but our own advance will
not be the less certain in all that can make
a city desirable, either as a place of resi-
dence or of business.
In our last annual review we had occa-
sion to notice the two cotton manufactures
in successful operation in this city, the Lane
Cotton Mill, in the Fourth District and the
Louisiana Cotton Mill in the Third. Both
have been improved and enlarged, and at
ford fair promise of doing a large bust
ness, to the benefit of the community as
well as of their shareholders. 1t has long
been urged that among the most pressing
needs of the South-the most calculated to
promote her prosperity-is home demand,
from home manufactures, for her leading
staple, and it has been argued that the
saving of freight, commissions and insu2-
ance would alone go far to insure the sue
cess of such enterprises.
The Lane Cotton Mill, the first established
in our city with this view, was in operation
for about eight months last year. when
it temporarily suspended operations, but
during this period consumed AS bales
of cotton, and turned out l5O,OOO lbs OF
warn and 80 900 TBS of rope. At that time
arrangements had been made for the pur-
chase of new and improved machinery for
manufacturing Osnaburgs, Lowells, etc. This
establishment has since passed into the
hands of Messrs. Lehman, NeWgaSs 81 Co.,
and Mr.. Henry Abraham, OF that firm, is
about starting for the North for the pur-
pose of purchasing the necessary machinery
to double the working capacity OF the fac
tory. Without, however. anticipating its
future operations, this mill is now in active
and successful operation, running 2l60
spindles, consuming daily 1920 lbs of raw
cotton, and employing tifty-six hands, viz:
seventeen men, sixteen boys, nineteen wO-
men and four girls. 1t manufactures eight
ounce Osnaburgs, Irvine, rope and yarns,
all of excellent quality, and in steadily in
creasing demand. 1t would be difficult to
name private enterprise more deserving of
the public support, and we trust that the
rreal thy and ennrretic firm Whn has engaged