New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1874-09-01
ale,r Orleans &epi'b|ifal..
sFeic,kL JOURNAL OF THE UNITED Slh'es
aEr,clsL JOURNAL or NEW ORLeANs
ANNUAL REVIEW
NEW ORLEANS MARAEI.
September /, 1874.

In accordance with CUSTOM at ING cIose VI
The commercial year, we present our readers
with thes following review OF the course u
he market since last August. In comply
me with this duty we shall conflne our
,o1na-ts 10 the movement OF the leading
,rt;cIes of our commerce, without attempt
irp TO give a general statement OF Inc
various manufacturing and commercial %,
tablishmeats in the city or any speclai
mention of the minor branches OF its traoe'
A. the same time we can not 1OrDear lrotn
such observations as the occasion suggests
in relation to the means that may De expe1
dent for the promotion OF the general
welfare.
In a cursory glance at the ehuTe HioNe
cnncIusion that the result is unusually uh-
sarisfactorv. Not only has there been a
Nreater diversion Of trade to Western citles
hv their Increased facilities for furnishing
districts. formerly almost exclusively trlbu-
:arv to New Orleans, with supplies OF west
err breadstuffs, provisions anu manu1ac-
lures. but second partial fal lure o. thesusa1
crop has added to the serious dissppelh1
ments of the previous year, anC mas peen
accnmnanied by an extraordinary shrlnkage
in the value of real estate and IN the mar
ket prices Of the bonds, stocks anu other
securities which constitute the stock hst OF
our money market. These various VALUES .I
.oa greater or less extent, represent lie
canitai of our banks and Incorporated COM
psnies. Whether bank holfs real estate
directly or s indirectly conceined Al =. ~
mortgages On long paper OF co1laleicie ~
short, iva decline has cOrresI Onllns mlu
80 ~. The hanks affairs; ami what is true
ri real estate is equally true Of stocks ana
bonds and of personal security, the soiiclty
~ Which is weakened by depreciation OF
any of the values We have mentioned.
Hence. with the general ehrinkage we have
referred 10, there has beeen speciAi oe-
preciatiOn in the market vaite OF p4nN
stocks, to such an extent that IL mas Deen
foynd necessary in several cases to scale
rnwn The number of shares in order to
Mace them in proper correspondence win
:he actual capital. When we ADD
mat large part of the assets OF
reese institutions is locked up IN Sc
curities. which. however sohd as Pefm&
nent investments, are unavSliaDie Iof
immediate use. we think that THESE lacts
can not be fairly considered WithOut the
conviction that at no former pes'oo was OUT
community more in need Of active capital.
IN stimulate the genera! movement, and
impart healthful vigor to every branch
~ trade. Were there any considerable
amounts living idle in private hands-ln
ron safes, or less secure depesitOrlee-such
snms might be made available by the es'
Establishment Of new banks, or an increase
in the capital Of these already estapisneo,
in which such funds would be ABSORBED 10
he returned to the COMMERCIAL community,
~ TIE discount of business paper, or short
loans on solid collaterals. Blu. this process
has already accomplished its ends. There
is hardly q nationality, class or pursuit
which has rot been appealed to by some
institution specially pledged 20 foster lis
interests. and whether in the form OF
stocks or deposits, 1t may Do alnfmed
that nearly the entire amount OF Hoatmg
capital has been thus utilized for the gen,
eral benefit. Least Of all can the desired
end be attained by the estapnsnmI a
of banks under the national banking law,
If based on New Orleans capital, only
p;nety per cent Of the face of the deposited
United States bonds being returned TO the
institution for banking purposes. we say
III based on New Orleans capital, Tor IL,
on the contrary, they were founded on Toy
eign capital, such institutions wouid actdaiiy
increase our active banking resources TO
the full extent of their circulating notes
Former,v il was otherwise, and the banks
were colupelled to hold Q reserve OF twenty.
five ner cent Of such circulating notes. Bat
this feature of the law has been repeated
Under these circumstances II would % oll
.icult TO designate . means OF investment
nv foreign bOntfhotders which weHid be
safer or more remunerative. 10 ulustrate
this we will suppose company OF capl1at
lets at the North. or in Great britain OF on
the Continent, hold an aggregate OF
81 900 COO in United States bonds. on which
.hev receive five per cent, or $50,0oO per
aunum, II these capitalists should employ
tLeir bonds in banking in New Orleans un'
der the national banking law the resuit
snight be stated as follows:
Deposits attracted by the capitas 900 oCe
gess twenty five per cent resersesoOsso'o 3'''ooO
s.s.eso,.s..s.s...$ll25,o OO
Profits On sI 100000 Of the above at eight aooo,
an,eFest on SLIGO COO ct Ave per cent? 10000
Eyoat on circulating notes, Syo,ooo OF NJ,
sight per centsooo0ssssssssssS0s-ssssso 'Z'oV'
gso.os ....,...,,. s2o2. 600
ye:soC. cor I, r oent expensee etc.,,,so.ss GOO
gesrtos.s.,..,......,,.,,...,....,s... sl7o,Ooo
Tins BY holding these bonds on their
portfolios these foreign capitalists would
make S y cent on their face, but by
using them In New Orleans under the ma
siopal banking act they would realize II "
cent We give these merely Hypothetical
or pro fornia figures. The acJua! result
would, perhaps be less but might be even
Ruore favorable.
IN this we have only considered the ques-
zion with view to its actual pecunlary re-
surns as an investment. But this is far
from covering the entire ground. we Will
suppose that these foreign capitalists are
British manufacturers. Is it not evident
qha, by their owning such an institution in
9his city they would be able to exert pow
srful influence in extending the consump-
qiop Of their own fabrics Could they not
stimulate the importation of such goods by
safe and prudent facilities to dealers
engaged in the tradeY If foreign houses
could realize on exchange drawn on New
Orleans customers. which they could read.
DIV do by the aid of the British bank, could
QIev not safely extend credits which would
give them preference over any Northern
American housesl Would not such bank
3e the means Of bringing together the Brit
ash manufacturer and the Louisiana mer-
slant, Il, their mutual benefit We think
chat all these questions must be answered
in the affirmative. But this is not all.
British manufacturers have vital in
Serest in augmenting the supply OF
American, and especially Of Gulf cottons.
Gould not such o bank use its influence to
qhis end Il hardly admits OF Q doubt. Five
milUous sterling invested in New Orleans
would do more to increase the product OF
Che staple than ten millions invested in
India. The delta Of the Mississippi is OF
such surprising fertility and SO remarkably
aGapted to the cotton culture that 1t only
cequires capital to attract labor, IN order
SO realize from its millions of uncultivsted
acres an exuberant production to which
ahere would be no parallel in agricultural
annals
What we have said of British bank is
Dutch or French bank. Either Of these
aationalities could largely meet the consump-
giou of the fabrics and goods in which it is
specially Interested by the establishment
of q bank, under the national banking law,
On this city, or the control could be obtain