New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1875-09-22
THE MATHEMATICS OF TRADE.

Orleans, in common with every other city
of the world that has subsisted on river
trade, has suffered decline of population
and valuation. We did not accompany
the evidence Of this change with the
theory which has occasioned it.
The tendency of trade has always been
upon the most direct lines between pro-
ducton and consumption compatible with
natural obstacles. Steam transportation
has occasioned the abandonment of the
more indirect for the more direct lines,
although the latter may be the more ex-
pensive. There is another agent of mod
ern commerce which has counteracted
even the difference of economy in trans
portation. The power of instantaneous
knowledge at one place Of the market rates
at another, has induced the holders Of all
commodities to avail themselves of the
more rapid, albeit more expensive mode
of conveyance. These merchants look for
indemnity in a capacity 10 command
satisfactory market prices by imme-
date delivery Of their commodity.
There is another reason even more
powerful. Capital may always be OBJ
tanned upon demonstrated capacity to
deliver commodity in market at given
time. The commodity drawn against, ac-
companied by the evidence Of its owner
ship, goes forward as the best security
for capital that could possibly be given.
1t IS manifest from this reasoning that
those who prefer the shipment Of a COM
modify whose value is subject to tiuctuh-
tons of market price must always risk
the sales on a market depressed by the
l delivery ;;arrii;;15 - mere rapid nc e
of transportation; and, also, that when
the mode Of transportation is OF slow and
uncertain delivery, the negotiation of
capital must be accomplished without the
agency. OF the commodity transported.
We have heretofore lectured through these
columns upon the effect Of steam and tae
telegraph upon capital and enterprise
heretofore invested in the purchase a1d
direction of these commodities. Both
these agencies tend to diminish, perhaps
to destroy, the intermediate aad specula-
tive profits upon this transit COM
merce. If our reasoning be correct the
relations Of the various trade centres to
each other have been materially modified.
The deep water ports must, of course, re-
tain their control Of all exports and I'M
ports within their trade area, but that
area, formerly depending upon the river
system, is greatly changed by the artificial
transportation which crosses the rivers and
bears the product Of their valleys to the
seaport most directly on the line to the
great markets. New York thus loses O.
trade which Boston, Portland aud Mon
treal secure, and gains i'll its place COM
merce which was once alone conducted by
way of the Ohio or Mississippi. If We
apply this principle to the grain trade, it
will be found to have direct line by rail
and steam between Wisconsin, Iowa, Hi
nois and the great grain markets. The
cotton of Arkansas and upper Texas will
obey the same law and cross to the
great outports of the East. There is a
line which crosses Texas south Of which
New Orleans will be found to offer the
best inducements of time and economy.
The Trade J0urpQ! will see from this
reasoning:
/. That if q hypotheneuse be traced
between upper Texas and Arkansas and
Liverpool the cotton will not defect from
this line and take the angle Of which ST.
Louis is the apex. The value of cotton is
not increased by its sale in any market
intermediate between production and con-
sumption, because no intermediate pur-
chaser can give more than the price in the
alternate market discounted for the cost
Of getting the commodity to that market.
st. Louis is off this right line, and any
attempt to divert cotton in quantity will
be fruitless. Nor would the factorase
of cotton be very profitable with the actual
and impending tendencies to diminish the
intermediate profits on transportation and
sale which have heretofore existed.
st. Louis, however, has far better and
more permanent advantage in the applica-
ton of the law which has been examined.
1t consists in organizing trade with the
tropics, on the longitudinal lines. She
has unlimited supplies and an unequaled
capacity for manufactures. Let her ex-
ercise the influence which she can com.
mand, and demand-a change in the trade
treaties with Spain and with other tropical
countries. She can not ask free trade,
but there might be, as in the case of Can
ada, q schedule of commodities, the
growth or product of the contracting
countries respectively, which shall be ad-
mittqd by each into its ports with a mod
crate and reciprocal rate of duty.
st. Louis is thus striving for q trade
which the laws of trade deny her, and
neglecting to command trade infinitely
more profitable and more permanent.
Let her, then, respect. the mathematics of
commerce, and since she has herself
bridged the Mississippi and entered into
a competition with Chicago and Cincin-
natl for trade to which they are as much