The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1878-05-19

IL originally was.
Respectfully, etc,
CHARLES GAyAHRE.
The New Orleans DEMOCRAT, in It's issue OF
the tenth instant has an editorial which pre-
sents striking facts, well worthy OF the atten.
ton and meditationS Of every citizen. 1t is sc
short. and, besides. 50 interesting, that | re-
produce 1t IN toto with the view Of making q
few comments:
That 1870 was much more prosperous year
than 1878 there can be no doubt. The whole
country was then GROWING proaperity; high
general. But If the wealth and, produciveness
result il more than astonishing. Tho Depart
ment Of Agriculture has lately published statis-
tic. Of last YEAS crop; This compares with
tion of wheat 1876 900 600 bushels or "a per cent
corn, 2b6 600 Oeo bushels, or "a per cent: barley
product $40 600 600 pounds or o. per cent: hay
Increase 80 per cent. Not only are the crops
better now than then, but tho country is deed-
eddy richer in cattle, horses, etc. The increase
in acres cultivated IL 81 100000, or 40 per cent in
mules and horses 100000 or 20 per cent; cattle
an Tn ffbf ren
we ought 10 be prosperous How are our man
ufaeturing industries firing?
Taking the weight principle articles that
this country Is engaged in manufacturing, it Is
found that our exports Of all but eight Of these
ar icles, during the past twelve months largely
exceed those of any past year. Tho increase in
the exports of cotton and wooden goods. ma
chinery, refined sugars, drugs and medicines
and agricultural implements Is particularly
large. running IN some cases aa high as 100 per
cent
Notwithstanding. therefore, tho immense
number Of persons out of employ ment In this
country, we appear to be raising larger crops
ana a,1s mar, man uiaonrlng more goods than during
nfhSnnt ftmg2 jndnpl
TO explain or account Tor"
The DEMOCRAT might have added that the
balance OF trade with foreign countries ia
enormously in our favor, which was not the
case, | believe In 1870, and that money Gin
the most prosperous years of this Republic"
never was loaned ut d cheaper rate of interest
when loaned Mt all on what Is deemed TO be
good security.
The DEMOCRAT thinks that under such cir
cumstanees "the present hard times are in
deed difficult to explain or account for"
Truly, at first sight, 1t Is O puzzling
phenomenon. But Is 1T not to be explained
partly, at least, by the unhesitating prefer
ence given by capitalists throughout the
United States, and particularly in Louisiana,
to bonds and stocks OF all sorts over real
estate-which bonds and stocks. amounting
toso many hundreds OF millions of dollars, alb
sorb SO considerable portion OF the currency,
and enable their owners to monOpoiize the use
OF that currency to the detriment of the
masses who are not In possession OF these ia
yorte objects of barter and trade. which carry
Interest whilst sleeping In iron safes and
bank vaults, and can be instantly converted
into cash to meet some lucky opportunity of
money making This preference has been
gradually increasing from 1870 to 1878 the
years referred to by the DEMOCRAT in it's
comparative statement. The natural conse-
quence is that real estate has been proportion-
ally decreasing in value, while bonds and
stocks have peen rising in corresponding
ratio. Thus man having, in 1870 invested
ar1 IN ,K,t ,t,,4
1878, hardly borrow S2O,Oo0 on the same, ex-
cept situated In some favored locality. and
not one cent II the same sum of 500, 900 had
been invested in the country parishes: but if
now or recently Invested in bonds and stocks,
whatever may tie their relative value, almost
as much capital as they originally cost, can
be obtained on pledge by the holder Not
only can much larger capital be
obtained on the value Of bonds and
stocks Of various sorts than on the same value
In real estate, but moreover il can be readily
obtained at a much lower ratio of interest 1t
is lamenta&Ie that there Is some very good
reason for it.: Let rs look at those stubborn
things which arc called facts From Canal
street to the Barracks, constituting half of
the city, the average proprietor of real estate
could, either for the purpose of local improve
ment, or for engaging in any active pursuit.
or even for sending to market, hardly borrow
anything at all. 1t is not astonishing, since
our Senator in Congress, Hon. James Eustis,
iudiciously declared on oath, at a time when
the condition of our affairs was not SO deplora-
BILE to an investigating body of United States
statesmen, that he would not accept as gift
that portion Of the city which have desig-
mated II he had to keep it and pay the taxes
for an indefinite period, and | fully agree
with him in the conclusion TO which he came.
As to the other half of the city extending
from Canal street to Carrolton, the prospect
is somewhat better, but not much. Hence it
may be said with truth that property in this
great city OF New Orleans hardly represents
any available capital, considering that so
little OF il can be procured either by sale or
ON mortgage.
Outside of the city it Is much worse, for il is
only occasionally, systematically and in an
exceptional way that shreds or patches of
currency can be obtained on ruinous terms
from capitalists, 1t is well known and be-
yond controversy that they have adopted il as
a fundamental principle In their transactions,
or q sacred rule of prudential conduct, not to
lend at all on rural estate. No inquiry is con-
descended to be made as to its value-t is
rural-that is enough, An iniexible mo"
capital at the service OF city proprietors-a
sort of feeble, thin, pulmonc, dwartish ghost
of q capital and totally inadequate to the wants
of the community-there Is no capital all to be
had for the rest of the State. The result is
.coinplete stagnation in the city and in the
country parishes-no labor and no bread for
him who works with his hands or muscles,
and none for him who has to rely only on the
work of the brain-with no well-founded hope
of q favorable change IN the proximate future
But let broker holding between his tri-
umnhant thumb and index q parcel of bonds
or stocks, suddenly exhilarate the monotony
of Carondeet street; at that sight capital will
push in n smiling stream out OF the rock, as
If struck with Moses rod. That rock, how
ever. will harden into adamant at the APP
proach OF farmer or planter. staggering
under the weight of his broad acres or OF the