The weekly democratic statesman. [volume] (Austin, Tex.) 1871-1883, 1873-11-06
The Commercial and Financial Situa.
uOns

1t is alike the duty of public journal to
give its readers the dark as well as the bright
side of all matters of public interest, even
thought may be at variance with theiryiews
and antagonistic to their interests. The
shrinkage in value of all kinds must adj
monish our farmers and merchants that as
actual money becomes scarce the products
Of the country decline proportionately. A
very large surplus of cotton, hides and wool
has been carried over from year to year by
spectators, occasioned by the great plethora
of money, all of which has tended to keep
up the price of the articles named, purely
speculs tive in character, and not caused by
actual demand created for the want of the
articles for manufacturing purposes. Now
that the money has been withdrawn from
circulation, and as it will be many months
ere it is again so plentiful, spectators will
not have it in their power to manipulate cot
ton and other articles as they have hereto
fore; consequently, we cannot look forward
to any improvement over present prices, and
the probabilities are that there will be a
still further decline. The fact is, the cot
ton and wool manufacturing and leather in
terests of the country have suffered alarm
ingly for the past three years, in conse-
quence of the high price of the raw mate
RAJ, hSpt UP ny Tic speculative nONSuhSul
we speak of, and the results are now begin
ming to develop in the failure and suspension
of houses and manufactures engaged in
these various branches of trade.
We have known that cotton, prior to the
war, was sold at New York for from six to
eight cents per pound that hides have
and pecans were sold freely throughout our
State at one dollar per bushel. This was
during the DAYS when gold and silver was
the basis of transactions. Now, is it not
reasonable to presume that what has been
the case under similar circumstances will
again come to pass2 That return to specie
payment is desired, yea, demanded, by the
people of hecountry, as is best evidenced
by the tone Of the. public journals of all
parties, there is no doubt, and even the
President has seen fit to give his views as
! being favorable to an early resumption. In
response to all which gold has touched a
/ lower point in the last few days than it has
since the close of the war, bespeaking lower
prices than heretofore for the products of
the country. The fact is, with but few ex-
captions, all those who shipped cotton,
hides or wool to New York, for-the past
three years have lost fearfully, which shows
that the trade has been so speculative in its
character as not to be healthy in its condi-
ton. There has been too much money,
which has caused such competition in bus
mess as to compel dealers to make pdr-
chases based upon a prospective rise in
the market. Thus, last year, forty cents
\ gold was freely paid in our State for wool,
and much of the same wool was sold at
New York and other Northern and Eastern
markets at from twenty-four to twenty-six
4 cents currency. The same, to some extent.
may be said of cotton. The purchaser in
the upper country draws for full value Of his
I purchase upon the commission merchant,
and the merchant ships the cotton to New
Y York to Liverpool. The cotton does not
lpay out BY twenty dollars per bale, and
i when he-cails upon his party for the deficit
he finds him unable to respond. This has
i been the character and condition of trade
for the past three years, and while it Ia:
been fun to the producer it has proved
death to the shipper, Tor second and third
hands,
We are thus explicit, for we feel that tho
producer, having swan along so long anc
I well upon the tide Of fortune, can scarce
awake sud denly to thorough understanding
Of matters as they now present themselves
The Withholding Of the produce Of The
country from market VIII only add to ths
duration of the panic, and cannot in the
end result other than d rantageously &
the producer. II viii hsVe the same eifec
rs the booking I'D Of currency or its with
draWal from circulation, from which n,
good results can proceed.
TIE aspect Of money matters At the grea
centres seem % look more favorable, aut
confidence is gradually and surely being re
stored; but the money which has beer
withdraw by the depositcTs from tn
banks does not return % their Golfers all o
which tends to harden money 1nd preven
the mercantile interests from Ssuniing tlos
proportions 50 necessary 20 q healthy sfste q
irada. - a5i1noie Bsiietia-