New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1871-05-27
United States Circuit Court.
Financial Condition of Planters.

The Terrebonne Republican contains a
well written editorial article on the financial
condition of the planters of that parish,
which we reproduce
Perhaps at no former time in the history
of our parish since it became sugar pro-
ducing parish, has there been a greater
scarcity of money than there is at the pres
ent time, and it is not difficult to find out
the cause. In former years the merchants
in New Orleans supplied our planters not
only with money that they wanted, but sup
plies also. In those times houses in the city
got all the accommodation they wanted,
not only from the banks in the city, but also
could get French and German capital to
operate with at a very low rate-say four
per cent. The merchant who could control
this capital made handsome profits by fur
nishing the planters with the same. What
is the state of things now? Instead of the
merchants drawing on France and Germany
for the amount they require, they have to
rely on their home resources. Those who
were able to lend money in France before
the war between Germany and themselves
are not now able to do so. The reverses
they have encountered during their unfor-
tunate contest with Prussia, and now going
on among themselves, and the indem-
nifty demanded of them by Prussia, part
OF which has already been paid.
the stoppage of manufactures during
the war, the utter prostration of business,
all these have had the effect of limiting
their supply of money to our merchants in
New Orleans; the consequence is our plan
tiers have to get along with the smallest
outlay possible.
1t is true all our planters are not COM
PEELED to seek aid from New Orleans mer
chants, but the exceptions are not very
many, and when we know that one firm
alone in the city supplies funds to run eight
or nine plantations, and that is a French
house, we need not wonder at the scarcity
of money at the present time, nor do we see
any immediate relief, at least not until this
present years crop goes to market. Another
great misfortune with our planters is that
they are compelled to ship their produce to
meet their obligations and save interest.
We remember about contest be-
tween one of our planters and a firm
in New Orleans, where the firm
wanted to charge fifteen and one half
per cent interest on the balance due them
from former years transactions. Finally
it was agreed that the firm should have
eleven and three-quarters per cent, which
made difference in favor of the planter of
three and three quarters per cent. Now
money can not be had even at this extraor-
binary rate, and unless sugar and cotton
sells il future at much higher price than
they have this year, we see no good pros
poets ahead for our planters, who have to
borrow money at such rates, and then be
compelled to ship their crop and sell it right
of to meet their liabilities Another item
we have not mentioned; that is, the mer-
chants charge the planters the same rate of
interest in November, or before they have
produce to meet their drafts, as they do in
the month of February. We hope soon to
chronicle a better state of things and, above
all, sincerely hope that our planters will
have an abundant season