New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1873-10-08
Communicated.
The Financial Crisis.

to our advantage, and may be turned to thu
resuecitatiOn of Southern prosperity and
the advancement of every interest Of New
Orleans. We're our banking institutions
but to resolve upon some course of co
operative action called for 80 opportunely
by this crisis, our commercial wants and
the producers of the incoming crope. q
year would not elapse ere the resuscitation
of Southern prosperity might permanently
be inaugurated, and our. city, with it's an
nual receipt Of cotton, and other produce
of nearly equal value, be made the basis Of
specie payment, and New Orleans the great
financial centre and the most sOlidlv pros
porous city of this continent.
The greenback system having been sown
for war purposes, has at lencth matured its
natural fruit, viz: Imitation, fictitious values,
extravagant ana wild specuiation-these
comprising the immediate cause of the
present, but only partially developed, crisis.
The general crash is yet to cOme-when,
time alone will reveal.
Does it not seem that, with the already
lDnnmerable suspensions and failures, gen
eral bankruptcy and wide spread ruin are
inevitablel A loss of confidence in the gov
ernmeDt's legal tender system would, with
in twenty four hours, destroy it's efficiency
and usefulness. How soon such a calamity
may be brought about by the present viru
lent storm or epidemic, no one can fOretell.
New York having harvested the benefits
of this paper greenback sys stem, has neces-
sarily been the first to suffer from the effects
of redundancy, causing initiation and reck-
less speculation, and now suffers the cOnse-
quences, viz: contraction of her fabulous
values in real estate, bonds, stocks, ETC..
pro ucing extended ruin.
Contrast the condition of New Orleans
with that of New York, or the condition of
the North and West with that of the South,
our misfortunes having had the effect to
reduce the values of our really to scarcely
one-tourth their intrinsic value. The pros
perity caused largely by imitation, under
Providence, may now be turned to the re-
suscitatiOn of Southern prosperity. the ad.
vancement and development of every
material interest of our Crescent City.
Were our banl ing institutions to resolve
upon some course of cooperative action
called for 80 OPPORTUNITY by this crisis our
commercial wants and producers of the in
coming crops, twelve months would not
elapse ere the resuscitation of Southern pros
perity might permanently be inaugurated,
and our city, with its annual receipts OF
from two to three million bales of cotton
and other produce of nearly equal value, be
made the greatest financial centre, and the
most solidly prosperous city of this CONT
nent.
Estimating the cotton crop to be worth
annually, III gold, here at our port, say
5000, 900 to 81, 10000 two-thirds of which
we can almost reasonably expect to control
and handle, what contingency can arise to
prevent us controlling the crisis, and turn
irg it to the recovery of our lost prosperi-
tyl To take advantage of the events now
about to eliminate in general ruin and loss
Of confidence and security, prompt and wise
action on the part of our banking institu-
ions might be made intellectually beneficial.
Could not the directors organize their
residents into q syndicate, will full powers !
20 act, raise O fund upon the aggregate |
credit of the banks in the syndicate, equal
'ay to the respective capital of each bank |
Could not the syndicate command gold |
enough to initiate the movement of bring |
ng and selling the cotton crop in gold To |
make the syndicated capital safe and pay
ng as an institution, 1t would simply have |
o advance say fifty per cent on the market |
'alue of the cotton, but only when it was
tOwsd safely in warehouse here.
Would no: an institution of this kind be |
he irresistible means Of attracting larger
hipments of produce and goods hither
nd could not this system of advancing be
made to break up the vicious practice of
dvancing, on crops to the planters and
peculators before either were even planted,
" the banks 7 and would not the cotton
uestion" necessarily become our subject,
o be controlled to an advantage instead of
disadvantage and lOss7 With proper
Dresight and energy the cotton supply can
g made our financial king" commanding
OF only golden obeisance, but making the
xchangrs and keeping the profits to the
ONE producers to its fullest extent.
Instead Of invoking doubtful legislation
} obtain Fort st. Philip canals. railroads,
to-, make use of your natural resources
nd take advantage of the prOvidential
gislation which is developing itself in
eneral suspension, failures and ruin
the land in consequence of our
tiated system of paper money.
Where are the brains, the position and
oral courage to give these rambling ideas
compact and active formi There are, in
10 opinion of the writer. few men in our
with greater comprehension of
cas-, experience and an answering integ J
~ and better qualified than modest, but !
serving Thomas Layton Esq. G.