New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1877-06-09
THE TRUB TRADE THEORY.

TIE TRUE TRADE THEORY.
There are antiquarians who, like the
Pickwick Club, are perpetually assigning
to the autographs of "Bill Stubs, his
box" the rank of new discovery. The
New Orleans Times is of these virtuosos,
and its demonstration Of cheaper rates
on the river than can be offered by rail is
fair specimen of imposing as q new dis
covery that which has been so long known
as to have been forgotten. Certainly, a
sack or barrel can be taken by barge
from st. Louis or Cincinnati, via New
Orleans and coast sail, to New York cheap
er than it can be carried across by rail
between these two points. Every shipper
knows and every newspaper publishes
this fact six times a week. Why have
Western shippers been SO blind to their
own interests as to abandon the Missis-
sippi and coast routes for the rail, the
lakes and the canal? We will answer and
therein state the trade theory of Transport
tation. Shipments have now become the
security to capital for the means of their
own purchase and movement. If this
mode of movement is rapid and certain
capital will advance upon the security of
the shipment alone. If the mode of
movement be slow and uncertain capital
will'require some collateral guarantee for
the advance. Western produce destined
for latitudinal markets can ship itself by
rail, while its holders would require the
aid of capital to move it by the river and
coast. We may say that capital will also
advance upon commodities in slow move
ment and of uncertain arrival at the point
of consignment. 1t exacts, of course, a
larger discount for such service. There
are two other considerations which in
duce Western shippers to prefer the
swift, sure routes; one is that they insure
a delivery in market at an earlier date
than if sent by slow and cheap route.
It also protects the shipper from sudden
decline in prices occasioned by the deliv-
cry of competing supply upon more
rapid lines of transportation. We do not
deny that certain articles which fuctuate
little in price and which are of great
bulk in proportion TO their value, prefer
fatboat or sail to steam, but the COM
merce which New Orleans wishes to re-
gain does not belong extensively to that
class.
1t may aid somewhat to illustrate the
reason why Western shippers prefer the
rail to the barge to cite the rate Of ex-
change between st. Louis and Chicago
and New York and between New Orleans
and New York. Cashiers sight bills in
st. Louis are worth ninety cents per thou
sand dollars. In Chicago they are worth
fifty cents per thousand dollars. In New
Orleans they are quoted at one-eighth Of
one per cent or one dollar and twenty.
Eve cents per thousand. The mail time
Of their remittance does not differ great
deal, being on an average one-half the
time between that of the Western points
and that of New Orleans, but the differ.
ence between the arrival of consignment
at New York by these two routes, in oul
opinion, determines the destination. We
may place the average freight time be
tween St Louis, Chicago and New York,
all rail, at five days; by way Of New Or
leans, by river and coast, at thirty-avt
days. When we apply the principles
enounced in the beginning Of this article
to the existing commerce between thu
| West and East the economy Of transporta
ton becomes an insignificant element il
the estimation Of the shipper or importer,
We do not like to offer an extreme OF ex.
trAyagant opinion, but win 60 SO far as K
say that il freight between st. Louis ant
New York were twenty per cent cheapei
than BY rail the speculative shipper, bas
ing his transaction On the credit Of III.
consignment, could not afford to adop
the river and coast routes.
i. We have, therefore, conceded tina
transportation Is and always has beer
cheaper between the West and East, b,
I nay a Nov Orleans than overland. Til
be net psriaeslg lEnown 70 every ahlppex
ot lkissfgss tzaas haa sbandoned ua m
4 Is e or orinien, 70 h found d