The Camden journal. [volume] (Camden, S.C.) 1866-1891, 1873-10-16
THE PRICE OF COTTON.
A Suggestion to the Cotton Planters Of
of the South.
LETTER FROM COL. D. WYATT AIKEN.

everywhere, suspended, failed, or to use a
familiar phrase, "broke with the pocket
full" Who these suspended parties are
does not concern the cotton planter; but
what they are is another question. They
may be fictitious characters for aught know;
most certainly they have been spccuating in
fictitious values in the shape of fictitious
railways, projected possibly into fictitious
countries. And it is equally matter Of
fact that they are reported "broken," and
consequent upon this report haa followed the
suspension of other Northern FIRMS succeed
ed by "smash up" of Baltimore, Richmond,
Petersburg and other Southern houses, the
depressing effect gradually speading itself
southwark, like the epizooty Of 1872, until
every one horse cotton farmer in the back
woods of the remotest Southern country has
been forced to inquire "what's the. matter
now?" And well may the question be re-
peated-what is the matter now? The en-
tire commercial community is all aghast. No
money is in circulation. The price of bread
stuffs has not changed. Wearing apparel
is bought and sold at steady prices. The
supply and demand of horses and mules, iron
and machinery, balance themselves at hither-
to average rates the price of labor is as
usual bacon has stiffened in price; but, alas
for cotton, that universally cash article, it
has greatly deprecated, and once at least
during its existence has become credit
commodity, its cash value being quoted as
nominal" Well may the unsophisticated
farmer, when he carries his cotton to market
and finds it unstable, exclalm, "Why is this
the case ?" ''Did Jay Cooke 4 Co, own the
Southern cotton crop?' Were Southern
cotton planters serfs of Jay Coke " Co."
No, no! But cotton planters, ignorant OF
the monetary rascaitics of the age, and strlv-
ing to learn nothing but how TO double the
cotton crop, we are always the victims of
every financial caprcc, that is or ever was
Matched up in that cesspool of corrupt specu-
lation-Wall street, New York. The none
tary system of the country isso limited. and so
utterly inadequate to the wants of this great
nation, that its very contraction induces
illegal speculation, which invariably results
in disaster to innocent parties.
The routine is this Some apparently
solvent firm suddenly fails and involves a
National Bank, that has loaned out all its
deposits, (our only circulating medlum)
This creates a "run" by tho depositors; the
drowning man reaches out for his straws in
the shape of nominal credits in other Bank
vaults this cxcites another run. and so the
disease spreads until every Bank in the
Union is more or less affected. Some sus-
pended, others fail, and thus the currency is
withheld from the people, and that product,
which usually establishes American credit
in foreign markets, becomes drug in the
home market, and does not relieve the iinan-
cial embarrassment by being offered ior sale,
Indeed, relief under our present monetary
system can come but from single source
the treasury of the United States-wh 'se
vaults can be opened by tho dictum OF SIN
gle man, and millions of The peoples money
disgorged to abate panic amongst spe.cHla-
tors. Are there not two sides to this qnes
tion? Ifone man can relieve, can he not al
SO inhct? And hence is not this too much
power for one man to have in u republican,
government, if ours be such
The establishment of the system of Ma
tiona Bonds by Congress was species OF
OBSERVATION-DISCLOSURES that tended to build up
a monetary aristocracy under the protection
of government at the expense of the taXP'y
er. and the sooner these bonds are abolish
ed and their worthless shinplastcrs replaced
by circulating medium Of at least apparent
" intrinsic value the better Tor the masses;
the longer they exist the better for The ic"
Their formation is somewhat after this style
Stock is taken. say to the amount OF $loe-
600; the money is paid in and exchanged ut
the government treasury for government
bonds drawing six per cent scml-annual'y'
IN qold, and these bonds are not tdro6'r.
Upon this fund of 800 900 in government
bonds the chartered institution, known n
a national bank, issues its bills or c"urs',
legally, the circulation is restricted, but who
ever examines to learn whether they ISSUE
100000 or 500, 100000? These bills are
loaned to preferred customers at one and
half to two per cent. per mouth. Now see
their absolutely certain profits, until some
Jay Cooke fails and exposes their lllegltimate
business, or induces the Withdrawal OF all
deposits The bonds being nontaXaDIe
their owners are saved at least three per
cent. thereby They draw SIX per cent IN
terest in gold paid semi-annually, which Is
equivalent to seven per cent. annually III cur
rency, and thus protection by government Is
thrown around these institutions equivalent
to net income of ten per cent annually
Add to this the discounts of eighteen to
tweniy,four per cent compoundins' and we
have a sure income of from thirty to thir-
ty-fvc per cent per annum. The investment
in these national banks is not intrlnslcally
productive capital. 1t a levy upon labor
| The real estate owners in cities, and farmers
in the country, feel the burden and not one
of them could borrow dime with and unln'
numbered real estate collateral worth thou
sands. This is the kind Of institutions
upon which we are dependent for our clreua-
Al