The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1877-06-13
THE GRAIN TRADE.

We find in the last issue of the Repub-
tjcdn tho following remarks concerning
the "True Trade Theory:
Why have Western shippers bsen 80 blind to
their own intert alta as to abandon the mississippi
and coast routes for tho rail, the lakes and the
canal? We will answer and therein state the
Grade theory of transportation. Shipments have
now become the security of capital for the mesns
Of their own purchase and movement IL this
mode of movement ia rapid and certain capital
will advance upon the security OF the shipment
alone. II the modo of movement be slow
and uncertain, capital will require come collateral
guarantee for the advance. Western pro luce
designed for latitudinal markets can ship itself by
rail, while it's boders would require the aid of
capital to move II by the river and coast"
The foregoing remarks embody a
clear and correct statement of the con-
siderations which have controlled the
action OF capital in compelling the
transportation of the bulk of the grain
product Of the West by rail to Eastern
ports, but we see in them nothing to
weaken our faith in the ultimate diver
sion of this great trade from the latitu-
dinal lines of tho Western and Northern
States to the Mississippi river. We do
not think that the slowness and uncer-
tainty Of the movement Of grain by
water have been the only cause Of the
indispositiop Of capital to aid in its
transportation from Western points to
New York and Europe via the Missis
sippi. One of the main causes of the
withdrawal Of capital from the develop
ment Of large trade relations between
the West and this city is to be found in
the disturbed political condition Of this
part of the country since the beginning
of the late civil war and the vicious laws
and regulations with which bad govern
mcnt has burdened commerce and
shipping at this port, and impaired the
security Of all enterprises and invest
ments. 1t is not at all surprising that
capital, which is proverbially cautious
and timid, should have to great extent
withdrawn from o field which, though
naturally profitable. seemed to bristle
with hidden dangers, and sought safer.
though less profitable, channels Of en-
ployment. This withdrawal led to the
concentration of all the capital availa-
bile for the trade in question upon the
building Of railroads in the West and
the use Of these lines for the swift
and sure transportation of grain.
But the restoration OF good gov
eminent in the South will in
evitably attract the attention of CAPT
tai to the advantages offered by this
part of the country for its profitable en-
ployment. Among these advantages
no one strikes us as SO conspicuous as
the indubitable fact that the Western
railroads, Notwithstanding the saving
Of time which they effect, cannot long
successfully compete with the Missis.
sippi river in the matter of Transports
ton of grain, and capital will not be
slow to notice this fact, and to act upon
it in one way or another. Such capital
as may, prefer to remain in a mobil-
lied condition may continue to
prefer making advances upon
shipments by rail, but plenty will
doubtless be found willing to invest in
barges, boats and steamers, and in the
grain itself, with view to enjoying not
merely an ordinary rate of interest for
its use and quick returns. but the splen-
did profits which the relative cheapness
OF water transportation insures to it.
Hence, as we have said, we have the
strongest faith that the bulk of the
great grain trade which has enriched
New York, Philadelphia and Baltimore.
and the railways leading to those cities,
will, in the near future. be diverted to
New Orleans, and contribute immensely
10 the growth and prosperity Of this
city.