New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1874-12-01
T1RoUoH TRADE IN GRAIN.

content themselves with doing
business accurately and honestly in the
way they were taught, but in commerce.
as in manufactures, there are frequent
changes 80 radical in their character as to
render worse than useless the practical
knowledge of those who conduct it.
Such change has been wrought by the
opinions of modern science. Formerly
while all modes Of transportation were
equally slow, the mere economy OF con
veyance was governing principle. DIS
lance and delay rendered several inter
mediate changes Of ownership between pro-
duction and consumption indispensable,
some conveyances could not be effected by
one shipper alone. Hence way factorage
now almost an extinct thing on transport
alton. The application Of steam to land
and ocean conveyance gives such con-
tinuity and certainty to a commercial
transaction as to make the COMMONLY
a safe basis of it's own conveyance. Flour
made in Missouri must have changed
hands at St. Louis to await the delay OF
conveyance and sale at New Orleans.
Flour at New Orleans must change hands
at New Orleans to cover the expectation
sale and returns. The rail, the wire ana
the steamship make barrel Of -four at
81. Louis worth the Liverpool or New
York price, less the insurance and frelghts'
TO Get it to market. Hence freights form
freight lines.
The bulk grain trade can not bear any
interruption of its shipment at New Or
leans or anywhere else. A speculation at
any intermediate point is impossible on
strictly finan cial principles. The bill OF
exchange drawn against guaranteed date
of delivery can be negotiated on GER
tainty of consummation at given date
II can not be done if the transit time be
doubtful. Grain is turned into the CHI
cago warehouses in immense quantities
and the certificates are put on the mar
ket. These warehouses are mere store
houses, and charges are made for COM
missions on receiving and forwarding,
nor is any intermediate profit made
at Chicago at all. So at New York
the grain is stored in magazines
is such quantities as that certlf-
Gates Of these deposits can be pur-
chased and shipments made at any
time. In New Orleans there is no such
of stocks as will enable the
foreign purchaser to order any quantity at
any moment: The orders must be put
in the upper Western markets and passed
in separate cargoes through New Orleans
The obstacle to this trade consists in
the fact that we have not here regular
and adequate tonnage to take this grain
away. Our staple export is cotton, which
being far more valuable, can pay better
freights than grain. Hence shipment OF
bulk grain ordered from st. Louis may be
embarrassed by the high rates or scarcity
Of tonnage.
To make this continuity and certainty
of time delivery, which the finance of
modern commerce demands, there must
be a close and certain relation between
the river and ocean craft
The conviction that this continuity is
Indispensable to the river has impressed
itself on the st. Louis Democrat, but not,
as we consider, on the principle stated
by us:
In addition to this. it is necessary that
the barge line running to New Orleans
should create q line of sailing Veesels 70
carry wheat from New Orleans to all
Atlantic ports and make as low through
rate as can be made from Chicago, either
to Boston, New York, Philadelphia, Baltl-
more or Richmond. This is feasible.
With such a com animation as we have men
toned St. Louis may pay her barges hve
cents and her sailing vessels ten cents. and
thus beat Chicago five cents per bushel in
her lowest range Of prices.
This may be effected to Liverpool as
well as to Boston, and by steam as well as
by sail. 1t will be unnecessary to do
more than put on such line OF grain
propellers as ply between the Black Sea
and the English ports, and let them pro
rate with the river barges each signing
through for the other. Under this simple
system which has been adopted between
SO many railroads and steamships, cargo
of bulk grain shipped from St. Louis
would be assured of going directly through
to Liverpool to arrive on n given day. il
would thus become the basis Of safe
financial transaction. and would enable
the English importer to know exactly
when and at what price his grain could be
laid down at Liverpool. and his caleula
tons would be made accordingly. We
have already had some such cargoes con
signed to steamer. when the barge coold
discharge into the steamer and the carg,
be transferred at the elevator or by float
ing elevator in the stream.
We have stated the demand Of al
modern commerce. and especially Of bull
grain. and sooner or later it will be con
formed to. 1t may be said that if there
is to be no local profit other than transfer
at New Orleans this trade will be Of NJ
advantage. This question does not come
up at all. We have no grain trade in bull
worthy the name. SO We lose nothing wher
we have nothing. But even through trade
is better than no trade. as it is exactl.
what New York. Chicago and Baltimore
are doing, we must do the same with on
competitors, or let them take the bust