New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1874-05-15

THE COTTON EXCHANGE CONVICTION
It was impossible at once to have real
lied all the incidental results Of thu
change in the labor system in the South
There are few interests, however, which
have not undergone more Or less modif
cation in the course of adaptation to this
great revolution. Among the Institutions
which have been most intimately connect
ed with the producing interest Is that o.
cotton factorage. The factor furnished
the means for the purchase of labor. In
this he was the Intermediary between the
producer and the capitalist This DEEPEN
dence of the planter compelled him to
order through the factor all the supplies
needed on the plantation. This afforded
large patronage, and, indeed, effected
an immense expenditure of cotton money
among our merchants and mechanics. To
the banker the factor was an invaluable
auxiliary. He obtained discount of
planters notes, and paid his debts in ex-
change drawn against their cotton.
We knew a large factor who before the
war needed an immediate advance Of
quarter of million, which was then q
very large sum. His banker told him it
was impossible. "Then, said the factor,
"my house will go to protest with more
than two millions of paper resting upon
| our Endorsement" A conference of
cashiers was held and the loan was made.
As patron, or even a member, Of an in
surance company he was very valuable,
and the rebate on policies was lu-
| crative branch of his business.
Like his prototype-fromw whom; indeed,
he borrowed his name-in the colonial
times here, and at present in India and AZ
RIGA, the factor was princely parsonage
Operating on the capital of Others and
not often a thoroughly educated man or
merchant he became often arrogant, and
affected a supremacy of style suitable to
those who deal with dependents and
aspire to state. The negotiable notes
Of his customers was his portfolio.
The planters were sometimes his ''constit-
uents;" he not uncommonly spoke Of ''his
plantations" that he run. If he was
obliged to put planters note in the
hands of a street broker it was "placed."
His letters were ''foreign advices." His
Judgment of prices and stocks was abso-
lutte. In those days the ship signaled at
the Balize. late in February brought the
first Of January news from England. The
factor had the only reliable correspond
ents and his letters fixed the highest rates
which could be paid. The compensation
derived from so many sources was COM
mission. The revenues of such houses
were princely, and the pretensi pps were,
as was natural, like that of any other aris-
tocracy. There was high standard of
style and commercial reputation among
them. Not being, however, as wise as
they supposed themselves, and sometimes
desiring to grow rich at once, the cotton
factor engaged in speculation on the in
fallability of his knowledge and whole
platoons of them went down at single
surge Of the great staple, which they as
sumed to control, as Canute did the sea.
1t is useless to write an essay upon the
changed condition of this commerce.
Labor now owns itself. 1t requires no
capital to purchase it. This one great |
need Of the planter, and one great security |
of the factor, has disappeared. The very
precarious character of the cotton crop
renders it unsafe to advance all the sup
plies necessary for its culture upon no
other security than the expectations Of the
planter. Hence advances are limited |
chiefly to cotton in hand, or with un-
doubted assurances of delivery. The Incl
dental advantages of furnishing merchan-
disc has unfortunately passed away under
the perfected railroad system. The laborer
and planter now buy much of their sup
plies from the country store. The Western
cities send provisions direct to the planta-
tons in the interior, and so relieves the
planter of his former dependence upon
the factor or the factors city. The rapid
and regular transmission and publication
of commercial news deprives the factor
of the prestige of exclusive intelligence.
The public knows as much about the
stock, sales and profitable prices as the
factor. The planter has no disposition to
pay a commission on his whole years
labor for the opinions of anybody.
But the factor is valuable citizen,
provided he descends from his tripod and
ceases to predict. He can exercise a
useful influence for the planter by such
as the Cotton Exchange.
Here the factors abandon the exclusive
system and come together to save the ex-
pense of separate kilograms of the same
notorious fact. Here they organize the
statistics of the growing crop, and here
they compile and collate the condition of
The crop and furnish the best authority
upon the subject
When the Chamber Of Commerce re-
this organization of the fac
tors it was done for the purpose of secur-
ng fair representation on behalf Of the
producer The whole statistics had been
published by the consumer. And even
now the New York Chronicle claims to
furnish authority better than that of men
who are in daily communication with the
planters.
The advantages of this cooperative as