The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1874-09-01
ANNUAL REVIEW
OF THE
NEW ORLEANS MARKET
AUGUST 81, 1874.
AUGUST 81, 1874.

since labt august. In complying with this duty
we shall cOnfne our remarks 10 the movement o
the leading articles Of the commerce Of the city
without attempting to give a general statenien
" lta various manufacturing and commercial en-
tcfpflses, or many speculations of the ninol
branches Of the trade. But, at the same time
we cannot omit such observations the occasion
suggests in relation to the means that may be
eApedient for the promotion OF the general well
a ARE.
In a cursory glance at the entire vement for
the year, 1t Is difficult to avoid the conclusion thai
the result IL unsatisfactory. Not only has there
been greater diversion of trade to Westel 4
cities by theI Increased facilities for furnishing
the districts formerly almost exclusively trbutu,S
TO New Or eans with supplies OF Western bread
stuffs, provisions and manufactures but second
partial failure Of the sugar crop has adder to the
serious disappointments OF the previous year,
and has been accompanied by an extraordinary
shrinkage in the value Of real estate, and in
the market OF all the securities which con
! stitute the stock list Of our money market,
accompanied by an extraordinary shrlnkage III
tho value OF real estate and i'll the market prices
OF the bonds, stocks and other securities which
constitute the stock-list Of our money market.
There various values, to greater or less extent,
represent the capital of our banks and incopora-
ted companies. Whether bank holds real es-
tate directly or is indirectly concerned in il by
mortgages on long paper or colaterals on short
Its decline has corresponding influence on the
banks affairs, and what is true OF real estate is
equally true of stocks and bonds and OF personal
y
a depreciation Of any of the values have men
toned. Hence with the general shrinkage we
have referred TO, there has been special depre-
citation in the market value OF bank stocks to
such an extent that it has been found necessary
in several cases to scale down the numbers Of
shares, in order to place them in proper cores
pondence with the actual capital. When we add
that large part, Of the assets Of there
ties, which, however solid as perman.
Investments. unavailable
immediate use we think that these facts can
not be fairly considered without the conviction
that AZ no former period has our community
stood moro in need Of active capital, to stimulate
the general movement and impart heathful
vigor to every branch Of trade. Here there are
considerable amounts lying idle in private banks.
in iron safes, or less secure repositories such
sums might be made available by the establish
ment of new banks, or an increase in the capital
OF those already established, in which such funds
would be absorbed to he returned to the CONNER
cir community on the discount OF business
paper short loans on solld colaterals. But
the process has already accomplished its ends
TTh. &c is hardly nationality, class or prr- uit
" h has not been appealed to by some institu-
y specifically pledged to foster its interests,
= whether in the fom OF stock or deposits,
IL may be affirmed that nearly the entire amount
Of floating capital las been thus u IizeI tor
the general benefit. Least of all can the
desired ond be attained by the establishment
Of banks under the national banking law il
U"'ou "" w" VI cans 'p.vn why ~ ~ .SHt u
the face of the deposited U. s. bonds being re-
turned to the institution for banking purposes. We
say "f based on New Orleans capital" for il, on
the contrary they were funded in for eign pital,
such institution would actu lily increase our
active banking resources to the full extent Of
their circulating notes. Formerly it was other
wise and the banks were compelled to hold a
resorve OF Is per en- Of such
circulating notes But this feature Of the law
has boon repealed. Under these circumstances
it would be difficult to designate a means OF in
vestment by foreign bondh ,ldcrs which would b
safer or more remunerative. To illustrate this,
we will suppose company of capitalists at the
North, or in Great Britain or on the continent,
hold an aggregate of 81 100000 in United States
bonds, on which they receive per cent, or S50,-
900 per a1aum. If these capitalists should en-
ploy their bonds in banking in New Orleans under
the National Banking Law, the result might be
stated as follows:
Interest on 81 600 900 at U cent, so, 900
Profit on circulating notes, 100000 at 8
" cont ....... ..........-.. 1900
Deposits Attracted by the above
capital .................. 81, 100000
Less 70 ~ cont. reserve. $4,000
Sl125000
Profits On u, 900, 900 Of tie above at $ u
cent. OBSERVATION-DISCLOSURES. en,GO0
$2O2, 0t q |
Deduct contingent expenses etc.. $4,000
Net nroJit ....... $40 DG.j |