Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1873-10-03
Fer the Journal.
It q
The Panic.

For the Journal.
The Panic. |
ACSSrS. EiitOrS:-Mercant opera |
tions, the world over, move and have |
their being i'll faith and confidence. |
So long as these exist, the wheels of |
Commerce and Finance work smoothly;
impair or destroy them and friction, |
more orless severe Immediately ensues
The true remedy then for crises
such as we now have, is the restora- |
ton Of confidence. This proposition
[ regard as an axiom, not to be sue
cessfuliy controversial. Without I'M
dertaking to discuss the various theo-
ries in regard to the present 'panic"
which, like a fierce tornado, has swept
with irresistible force all over the
country, I think it with all it's attend
ant evils, may be attributed, mainly
at least, to loss of confidence Restore
faith and confidence then in each
other, and you restore the monetary
and commercial affairs of the country
to their normal condition.
It seems to me that the most i'm
portant step toward the restoration of
| confidence in this community, and
| ease to our money market, would be
| the rigid fulflment Of contracts on the
| part Of the people.
Our Banks have loaned their caDi-
| tai to the merchants in order to enable
| them to 0dra1ace to the producers in
| the country for the purpose of making
and knowing the crops" The farmers
| have on hand cotton thus advanced
on, the produce of the past season.
| To cultivate this cotton and prepare it
| for market currency was essential, and
| this currency when needed was furn-
| ished by the commission merchant, on
| the pledge OF the farmer that the crop
| when made should be sent to the mer-
| chant for sale, out of the proceeds of
| the sale of which the merchant was to
take first his advances. then a reason
| able commission for the use of his
money and for his labor in negotiating
the sale.
| Upon the faith of this contract with
| the farmer the merchant bcrrows the
necessary money from the bank with
which to make the required advances,
contracting to reimburse the bank,
when he receives the crop from the
farmer.
II the farmer faithfully carries ont
his agreement, well if, however, lie
retains the money furnished him by
the merchant, and fails to send the
crop to market as agreed upon, the
merchant is rendered unable to meet
his obligation to the Bank, and the
Bank is deprived of ability to accom-
modate its customers to exactly the
extent to which these failures occur.
Confidence in each 9th er is DESTROYED
and ''hard times" follow
All this would be cbviated by the
observance OF his contract on the part
of the farmer.
In an article in yesterdays issue OF
the JOURNAL you ask, "What has be-
come Of the large volume of currency
that was but recently i'll circulation =
So far as Wilmington is concerned
| reply, it is IN the count try, having
been used by the farmers in the cult
walton of their crops and by distillers
IN the preparation of naval stores.
When cotton and naval stores come
into market freely, confidence and ease
u" III" money market will be at once
restored.
1t was, 7 confess with some regret,
that | read your article Yesterday on
the Panic, in which you seem to
recommend your country friends ''to
hold on to their cotton"-thc
deprecated BY the New YORK York
u Or{d, IL its article quoted
by you. Without entering upon the
question of moral ethics involved. viz:
Whether man can honestly "hold on
to cotton which has been fully ad-
vanced upon, and which he promised
III consideration OF such advance. to
send to market so soon as ready. I will
content myself with asserting that the
course recommended will do more to
prolonS the 'Crisis' than any other
which could be devised.
Cur merchants have InanfiGliv breast
cd the storm thus far; they have main
tanned their credit by meeting their
Obligations at whatever pecuniaav sac
ritice. III the hope that the produce for
which they have paid months ago.
would soon be in their possession. and
by realizing upon this produce when
necessary, they would be enabled TO
relieve themselves of the immense
strain upon their finances. But. if
they are to be expected to continue
these efforts to sustain themselves and
their country friends and yet rccciv.
nothing IRON the country, then indeed
will Their energies relax and the
| present confusion become worse con-
founded. Should our merchants give
way, then, of course, the banks must
suspend also.
Were these 1nisfortunes to result
from tie course which you apparently
recommend, believe ne, the losses to
| the farmers who ''hold on to their cot
ton, would be most disastrous. not
| only from damage of credit and char
actcr consequent or The nOn-fulfiImpnt
Of their pledges, but from the immeli-
ate effects on their produce, thus kept
! back from market. Values would at
once shrink below the cost Of produc-
ton. | venture to predict that cotton.
| shoull any general disaster bcfal our
banks and merchants. would decline to
| 10 cents per pound. The present price
of cotton IS remuncrative to the pro-
Queer, and the tendency, in or some
what improved monetary condition.
seems upward, but even if the price
were lower than at present, aud its sale
We're to entail Il loss on tie farmer.
should he not manfully mako the sac
rlticc Have not oar merchants and
banks lost heavily, and is the farmer.
who is indebted to them, not tc lose ?
Is it not fairer that the necesaarv loss
incident to the storm, should Ds. livi- !
ded between the banker, the commic-
sion merchant and producer, the three |
parties III interest?
But L maIntaln, IN full assurance of
the truth Of the assertion, that the
wisest course to avoid loss, is for |
farmers faithfully, and with more pune |
tuality even than ordinarily, to come |
forward with their produce to the help !
of the merchants, and deliver their |
crops of every kind in compliance with
their engagements.
I do trust Messrs Editors, that YOU
will use the great influence your paper
justly enjoys, in urging the farmer
and distillers to press forward to mar
kot al their products.
This they should do, not only be-
cause they are under moral and legal
obligations to do SO, but also because
they will find it the surest and speedi-
est remedy for the ills from which we
now suffer. A.
The German .Nt3CS saws that the dis