New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1873-10-30
WAITING FOE BENEFITS.

!. rule, our merchants having no money {
s their own. and not TOO much cred
abroad, became eager borrowers Of none
on any terms they could get it for. Th
banks have for many months been caution
lenders ct legal rates: hence borrower
| were forced into che street, where tn
tuinous rates Of two and o half to thre
per cent per month prevail. for goo
! paper or such as is made so By undoubte'
collaterals With such high rates pre-
vailing, no banker could count long Oh
keeping his deposits. especially those Oh
call. The usurious practices Of stree
lenders had the effect TO transfer the ioa,
! and discount bushes, from the banks &
the curb stones, and every deposition
wanted his money at once. either to use il
his own speculations or in shaving notes
/ It is employed in this manner now, and
will be SO long as there are merchants
without money Of their own cyowding The
| market.
/ The banker has two-toid duty 20 dis
chargs-to receive money from depositors
and pay il out on demand, and to supply
borrowers with loans when he can safely
! do it. But it can not be required OF him
to have at all times an unlimited amount
| OF mopey to let QUE TO cotton fac.
tors at eight per cent. who in turn
! exact from planters fifteen. and then
charge two and eEe-half per cent COM
mission tor selling their cotton. There
are people. however. who have enjoyed
this profit Of seven per cent upon other
peoples money SO long that they regard
the present inability Of the banks to go
on in the old way as q great hardship.
Says one of these pensioners on the agri-
cultural industries OF Louisiana "If
the banks would only let US have money
enough, we could buy all the cotton that
comes along" But even il che banks
fail to come up to the point Of duty by
stalking needy factors, some of the old fos-
sis live in the hope that there will be no
serious consequences. They think there
is no danger of losing any material por-
ton of the cotton crop, because it has to
be shipped somewhere, and New Orleans
being the natural port of the whole Mis-
sissippi valley, is bound to get it. It be-
comes, therefore, a mere question of time.
Let US examine this question for the pur-
pose Of determining whether the "natu-
raj port " has not already been fanked in
a serious manner. According to the lat
est advices received by the Price Current
the receipts of cotton at all the ports since
the first of September foot up as follows
Bales.
New Orleans.....".. 1913
siooe. 80.
Norfolk and other virginia porte 80 34s
North Carolina and Florida. ,0e6
New York and other overland ports.s....... 40
Which leaves. us within q fraction of
twenty per cent Of the total receipts, ex-
Guiding Texas, which are about twenty
thousand bales. 1t will be seen tnat Sa-
pannah is less than one thousand bales
behind the 'naturai port" and the cur.
rent receipts of that city are greater than
ours. which if KEEP. up will place it ahead
Of us, if it is not already SO. This show.
ing is the result Of the railroads running
from east to west, and which the majority
of our comfortable old pumps think were
to haul sleeping cars on the |
way from New Orleans to Saratoga, with |
surplus power enough for mail, express,
baggage and smoking car. Perhaps it is
a serious fault in our banks to be out of |
money to lend man who has just spent |
all his last years earnings at a fashionable
Northern watering place Or in Europe and
in excellent health and spirits,
for another loan. 1t puts the |
poor planters, who are awfully cramped
for money, to the necessity Of raising
money elsewhere, or living on half rations
ill financial affairs grow better in their
natural port. The owners of about a
quarter of a million bales of cotton have,
t seems, made terms with friends orthe
Atlantic coast, leaving the factors and
merchants of New Orleans to the joys of
heir past experience.
There are other causes at work besides
he scarcity Of money. which are sending
'otton away from New Orleans. Com
'laints are made that our factors. cotton
'resses. insurance companies. steyedores.
'arehousenen. ETC.. are too high priced. !
The one hundred and thirty odd cotton
actors Of New Orleans are credited with
'rofts for las; years business which foot
p twenty-five millions The other charges !
robably amounted to nearly az much
acre: and SO the planters had little or
othing. This profit o! twenty-five mill
ons to community doing business on
Is own capital would be = substantial
nd gratifying exhibit. But little of it
yer remains here. The bulk goes to the
zen who loan the money. and is as likely
, be sent to sustain the commerce of q
wal city IS to come baci. here. This (
roves tina: New Orleans is more in want
men who have money Of their own
IAN banks 10 loan 10 those who have ]
othing.
TRANSPORTATION.