Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1873-11-09
KING COTTON.
4 Plan for the Relief of the Planter
and Merchant.

Pursuant to 4 call published in our col
umns yesterday morning, large number
Of the most prominent business men in the
city assembled at the Board Of Trade room
at p. NJ Yesterday. in order to devise
some plan by which the cotton crop may be
brought to market and disposed OF to the
mutual advantage Of the planter and the
merchant,
The meeting was called to order by II.
G. Hensley. President of the Board Of
Trade. who briefly explained the object Of
the meeting. lie then stated that Mr.. J.
Z. WheleSs had given the matter cOnSid'
cradle attention, and called upon that gen
tleman to address the meeting.
Mr.. WhelesS said that this panic has
been going on for two months now, and so
far as we can see the prospect Is no more
encouraging now than at the beginning,
As things are now, it is utterly impossible
for the planter TO pay the country merchant
to whom he is indebted, and utterly inn
possible for the country merchant to pay
the merchant here. The planter is unwil-
ling to sell at present prices, but If he
could be secured he would give his cotton
to the country merchant as collateral, and
he can then ship it here and store it in a
warehouse. Upon this cotton a storage
receipt can then be issued and used i'll the
payment of debts.
Suppose an association were organized
here with twelve directors composed of
banking and other business men, and
warehouse is prepared to receive cotton. A
country merchant sends to A, b. twenty
five bales of cotton to hold as collateral to
secure his debt. A. b. stores that cotton
in the warehouse, where it Is weighed and
clasSed by the Superintendent of the ware
house. Suppose each of those bales weigh
800 pounds; the Superintendent Will issue
certificates upon basis OF eight cents on
a pound. low middliEg cotton; that will
amount to $40 on the bale, or $1,000 on the
twenty-five bales. The certificates would
read something like this:
Six months after date the Merchants and
Planters Warehouse Association will pay
to bearer 500 out of the proceeds Of p
bales of cotton stored by A B, upon which
certificates of storage have been issued to
the amount of 81 900, bearing interest at
10 per cent. per aunum until called in for
redemption by public notice.
The cotton is then put upon the market
and sold, The Superintendent OF the
Warehouse Association then charges the
81 900 advanced in certificates, interest on
the amount, storage and insurance, and
then paws the differences to A Is when the
cotton is sold, and then notifies the holders
of certificates to return them and get the
money for them. These certificates, mean
while. have become circulating medium
for the payment OF debts.
This Association is to be organized, if at
all. with Board of Supervisors and Di-
rectors, similar to any banking institution.
Legally, these certificates will be ware
house receipts. Practically, they will be
come a collateral for the payment Of
debts. But the first question you want an
swered is, will they be taken? Of this
we can best Judge by looking a moment
at the past. In 1857, when all the banks
suspended specie payment, and poured out
their notes. they were taken. More re-
GENTLY. when the New York Clear-House
Association decided to issue, and did
issue twenty millions loan certificates, they
were taken, and so were the certified checks
of our banks. Now upon what basis did
these obligations rest that planters, mer-
chants and banks should have taken
them in pavment Of debts? Why, sir, we
ali know that the notes issued in 1867
had no real secure basis, except in
the event jllc itluCug PiOfNN q N'ic
the disease The loan certificates OF the
New York Clearing House We're based
unon greenbackS, Government lands, and L
believe miscellaneous bonds and stocks.
The certified checks Of the national banks
were based upon the solvency Of the banks,
(which no one dOubted), but still their
question of solvency depended upon mer-
chants paper Now what was ali that,
compared with the security offered for the
redemption of these warehouse certificates.
Sir. there never was issued bank note
with such an undoubted security.
The Bank of England to-day, does not
offer for the ultimate redemption OF It's
notes 4 better assurance. l have calmly
weighed what | assert, and reattlIm II WIN
emphasis, for we know that its coin does
not exceed one-third its circulation, ana III
the case of these certificates, you have
security where the assets are 20 to Do per
cent. greater than the circulation, and
these assets for all practical measures OF re-
lief in times like these, are equal to gold,
and you need not fear but what they viii
be taken, for in less than three weeks the
question will not be in that shape, but
rather will the enquiry be, where can we
get them.
Every merchant in Middle Tennessee
and North Alabama will placard his store
with notice to the effect that he will take
them for debts, and l mistake greatly if