The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1876-03-22
COHHERCIAL MATTERS. Etc.

CO11ERCIAL IATTERS, Etc.
South America imports and pays for $780,
COZ, 900 worth Of goods annually. Yet the
United States does not supply the one six b
part OF these imports. while We are the largest
single customer South America has. In 1874.
South America bought &23, 9l3 4l2 of our
goods. while We took $66. 095. $50 Of South
American goods. Brazil bought seven and q
halt millions Of US, and sold us forty.four
millions. Wits is this ? It is not because
south America does not buy, for South Amer
lcs buys foreign goods to the value of Sc per
capita, our own purchases of foreign goods
last year being not quite $12 per capita
showing that the twenty-six millions of South
Americans are half as good customers Ito
Great Britain, Germany and France, with
whom they chiefly deaI as the forty-fve
millions of North Americans.
The Southern States embrace an area Of
nearly 1000, 600 square miles, or more than
GOO coz, 600 acres, with population of about
1900 600. The natural capabilities of this sec
ton surpass those Of any other land beneath
the sun, while their productive results are Of
VIAL Importance to the commerce of the
world. the annual cotton product approxima.
nng 4OO,O OO bales and bringing revenue of
nearly $3.50, O00, 900, while The rich aorioul-
tural products, timber and naval stores con-
sabu!e in no small measure 10 the general
wealth. 70 these sources of revenue may be
added the mineral resources of the country
now being developed.
The success and economy with which this
work is being carried forward will be con-
ceded when it is known, as one of many SIM
lax facts, that pig iron is actually being made
II Tennessee at less than SIS per ton. Yet
the developement of this section ia hardly be-
r hat Gtoto nf sccsr
alone, If her soil were properly and entirely
titled, would bring forth an amount of cotton
equal to the present entire annual product.
And surely the aggregate mining interests of
the whole section could find ample scope in
about any one Of the rich mineral States we
could NAME
The Bank Suspension.
IN. Y. Bulletin, 10th instl
Tho suspension of the Bank of the State OF
New York is more Of surprise than calam-
ity. The depositors will lose nothing, al
though, of course, they will suffer from delay;
bat the delay need not be very serious if the
liquidation be we'll conducted, the cash on
hand being nearly so per cent Of the amount
OF the deposits. And, unless the condition of
the loans and dis cunts be worse than the
first reports indicate, we do not see why the
stockholders Should not ultim .tely receive
somewhere between so and rs cents on the
dollar. So that. intrinsically, the suspension
IL not to be regarded in the light Of disaster
involving serious consequences to the oom-
mercial community.
Il is, however, q matter Of profound sur
prise how bank Of such standing and sup
posed conservative habits of business should
have come into such q conditions From it's
sworn statements to the Controller of the
Currency, from the character of its weekly
statements to the Clearing House, from the
regularity Of its dividends and from the mar
ket value Of its stock, the bank has been gen.
orally regarded as one of our sound and most
conservative institutions; and the character
Of its managers also has, in no small measure,
contributed to give it that reputation.
According to its statement Of December II,
1875, to the Controller of the Currency, the
bank had then SIS, 257 400 of assets ($3, 639, 900
consisting of loans and discounts) wherewith
% meet 81. 734. 700 Of indie btedness to deposit
tors. note no ders and other creditors. appa-
xently showing . surplus of 1922, 700 above
it, 81, 000, 600 of capital and every one be-
ieved this exhibit. for no losses were known
protested paper Of Duncan, Sherman u CO.
The Bdnk Examiner, however, discovers that
the loans and discounts include 81, 100000 of
advances of bad or doubtful character.
4 Touring mill speculation, fiourishing in
. duplicate capacity as the United States At
triton Company and the New York City Mills
Attrition Company, but really conducted by
the same parties, appears to have got out of
the bank 1914, 100 with no other security
than some $500, 600 worth Of malt and hops.
and certain scrip or patents Of which little is
known, and which, without the support of
the bank. is probably worthless. Virtually,
the bank has loaned these promoters of an
untried enterprise nearly one-half OF its CAPT.
tai
A produce commission house has been per-
mitted to overdraw its account $3.50, 600,
giving book accounts as security. The Vice
President of the bank has received on his
own account . loan of $3.50. 900, giving a
mortgage on real estate as security, the value
Of which is considered doubtful, and in addi-
ton has received $4,000 without security.
Besides this, there is on hand some $3.50, 900
Of protested paper. which, as we understand,
IL counted at its full value in the statement Of
discounts.
That such loans could have been made by
GuCh bank needs more explanation than has
yet been given. Some great change must
have come over the spirit of its recent man.
agement, or these things could never have
occurred. It il not 30 much generally care
lees management that is to be assigned as the
cause of tho trouble, but that enormous
advances appear to have been made to two or
three parties for purposes that never should
have been encouraged by bank. The bank
has plainly been used for private purposes,
and that to the extent Of considerably over
half the amount of its capital
Iss ordinary commercial losses have not
been serious enough to cause it any great en-
barrassnent and its failure therefore carries
NO special implication against the general
status of commercial accounts among our
hanks. and has caused no indiscriminate dis
1xusk The bank has failed through what
looks very much like gross malappropria-
ton of . very large amount of its funds, which
the stockholders will no doubt look into; and
its moral, 80 far a. it has any, points mainly