New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1873-10-11

Circular of che New Orleans Cotton En-.
| change.
| We have received, with the compliments
| of II. G. Hester. Esq, secretary. the follow.
ing circular:
New ORLEANS, October 70, 1873
At a special meeting of the board of d..
rectors Of this exchange, held this day.
the following circular was unanimously
adopted
In view OF the general misapprehension
which seems TO prevail regarding the pres
ent financial status of the country, we deem
1t not out OF place to lay before our friends
IN the country a few OF the leading facts.
and our deductions therefrOm
IN New York the monetary panic lie viz
tually over; confidence is being rapidly re-
stored, and currency commands mere
nominal premium over checks accepted by
the banks. AS matter of self-protectiOn,
to prevent their becoming depleted of eur.
rency during tho height Of the panic by
means OF drafts upon them from the North
and West. the banks OF this city suspended
currency payment, and hence tho inability
OF our merchants 20 furnieh their customers
with their usual quantity Of currency, by
which the picking Of cotton and the move
pent OF the crop to market could be facili-
tated, as had been their course ip former
seasons.
The strength Of our banks has been fully
demonstrated by their conduct during the
trying times through which we have passed: |
nevertheless, the immediate pressure for
currency has caused the sale of their &C.
cepted checks at large discount. In the |
common course OF business. the South is |
largely indebted TO its commercial centres.
during the summer, for assistance in plant.
ns and cultivatlng the crops: and, these
centres, III turn are more or less indebted to
he East. These obligations are cancele.l
"a the Tree movements OF the cotton crop. |
L he present interruption causes the balance
II trade 10 remain against us, and sight ex
'hange on New York is now selling ac two
'er cent premium. when it was at discount
u dhIs time last year, as would be the case |
low WIN tree movement of the CROP |
his anomalous state OF affairs must con.
inue unit! the tree arrival of produce takes
lace,
Our banks are doing all in their power,
ut 1t can not be expected of them to bring
urrency here at loss of fully two and !
ne-halt per cent even were it possible: but |
is plainly out OF the question, until there |
movement OF produce, for us to have a
lpply OF currency here. Nor is 1t prob
Die that New York, already largely cred
or OF the South, will come to our relief: |
e must help ourselves by the movement !
our own crop.
We are convinced that at an eariy date !
10 Northern banks will nearly all have re-
lined their usual course of business. and
lat those of the South will follow as soon 5
the movement of the crop causes a sutfi !
ent amount of exchange to be drawn Il
IL Is not within the province of this En- Z
iange, representing both buyers and sell 2
rs OF cotton. to express an opinion as to | a
e future course of prices. but we NAV be | /
'rmltted to say that it is reasonable to sup )
'se that parties realizing at current rates.
lrlng the present dearth of cotton, will do Z
well as, or possibly better than those
no sell later in the season. when receipts s
necessity must be very large A
JOHN PHELPS. President, A
To G. HESTER, Secretary,