The New York herald., 1873-11-15
GEORGIA.
The Troubles OF the Cotton DcaleFs-U0
Banking Accom- I'M odation-sugg gesttOns
To Issue Local Currency.

The Troubles OF the Cotton Dealefs-UO
Banking modation-sugg gestions
To Issue Local Currency.
AUGUSTA, Nov. Z. 187a
The commercial and financial situation in 0e0g.
gia is not very encouraging. The local press o.
deavor TO keep up the courage OF the people by
assertions OF better times and an easier money
market; but no one believes them, because every
business man In the cities and every planter In the
country knows to the contrary. Since the 20th
or last September Georgia has experienced Q
fear ul financial stringency. ami affairs seem 60
grow worse daily instead OF better II Is true that
the banks and banking houses which suspended,
after slight resistance under the fnduenos
OF the run made upon them during the panic week,
have resumed to certain extent, but these re-
sumptons have afforded nut little perceptiOle
reeE The banks pay dep0slt0rs, but they are un-
able and UNIV Hing to extend the usual accommoda-
ton to the business public and hence every branch
OF trade Is badly cramped. To add TO the troubles
o depressed cotton market has followed the panic
and the stat Ie is to-day bringing on an average
throughout the State eleven ana half TO thirteen
and q quarter cents. Az the very lowest estimate
made by planters and factors when the crop was
spitchedn was fifteen cents. 1t is easy to see
what the loss the present crop Will be. To IN
derstand why tho South has been so seriously
anected one must also understand how business U
generally conducted IN this section. Since the
war the cotton planters have been running their
plantations almost entirely upon credit. At the
beginning OF every year the planter prOcures from
his factor sum OF money sufficient TO pay for his
corn, bacon and supplies generally; his stock, his
wages and his commercial fertilizers, which lass
item has grown to be q very heavy one in tho
planters annual expenses. To secure him
sell the factor taxes note iOr tho
y on ns s ,he ts ra
OF from eighteen to twenty-four per cent per an.
mum. This note is secured by MORTGAGE upon al
the stock farming implements and other personal
property owned by the debtor and also by what u
known as a crop lien. by the terms OF the lien the
planter obgates himself to send all the cotton
which he may make to MS creditor tor the purpose
of paving his indebtedness, and upon failure TO
comply with this contract the factor may f0rec0so
his lien In a summary manner and enter upon the
plantation aud take possession OF TIE cotton. The
factors obtain the money which they lend to the
THE HIGHEST RATES OF INTEREST
from the banks, either upon their own paper or
upon drafts which they have accepted. Thus IL
will be seen how completely the planters are IN tho
power OF the factors and Also how completely the
factors are In the hands OF she bankers. Stimu-
lated by the high prices whicn cotton brought lase
iall and winter rhe planters prepared for an unu-
sualIy large crop. The average largely 10
creased as wed as the expenses OF cultivation.
ass every
corn, &c, and the advances made by factors
were proportionately neavy. 1t Is no exaggeratou
vanced upon the crop OF Middle and southwest
Georgia. and the guan0 and other hens were
usually made payable IN cotton at III Teen cents per
pound. Upon tne lst day Of September the pros
pect for the autumn and winter was as brilliant az
one could have desired. Cotton was worth eigh-
teen cents, ana tie indication seemed good Tor aa
adrance to twenty. Tne merchants brought out
heavy stocks OF goods In anticipation Of heavy
business, anu flush times seemed close at hand
Two weeks afterwards Jay Cooke Co. failed, the
money troubles in New York commenced and
BUSINESS COLLAPSED AS SUDDENLY
and completely ns q cholera patient. since the
18th or September nothing mas been DONE The
merchants brought out large stocks OF goods, bus
they remain upon their hands unsOld The cOuu-
try trade always the most lucrative, is this sea-
son value ess rhe planters have no money and
| can make no purchases. The factories are running
/ upon hall time, but there Is no market for tina
| goods manufactured, aud they will soon be COM
| PEELED TO stop work altogether. Collections
| have ceased almost entirely, aud tho
weathiest men Ind 1t almost an fmpOssibility
to pay the smallest bills. LITERAL, tnere Is no
money In the state, and unless the pressure ID
soon lifted or else materially lIgRtened most
disastrous commercial crash must inevitably en-
sHe The cotton receipts are heavy and tue sales
are prOp0rtionately iarge but the price realized
Is 80 low that the planters VIII be utterly unable
to hquidate tner inde eotedness. some effort has
been made to AFFORD relief by the Issue OF local
currency, but little OF good has been accomplished
in this way. Tne people have lost faith IN every.
thing ike paper promise to pay, and 1t Is onty
hard money winch Will restore public confidence.
The state Is rea ~ willing anu anxious or the re-
sumption OF specie payments, and are totally
opposed to any measure which squints even as ex.
nan