The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1879-03-22

bonds advanced Immediately and but for the loss Of
the sugar crop in 1878 and the epidemic of last
mer they would have continued to advance and
tire confidence would have been once restored.
We have had but little credit since 1868. Tho taxes
have been an immense burden. Our city
lost much of its trade by the system OF
railways from the East to the Mississippi
Valley. which made that valley tributary to the
East Nearly onerhird of the land of Louisiana
formerly cultivated like a garden and enormously
productive. has not been rescued from the thistle
and weeds since the II is as fertile aud
labor be readily procured, but have been
compelled to pay from fifteen to twenty-five per
cent for money.
WANT OF CREDIT.
'In fact we have had credit. have an estate of
near'y ten thousand acres with seven houses
and machinery. ready for the plough and
the colored people have remained upon il
cultivating small patches; but. while it would
require s5oo0o TO put it in operation could
not at any time raise $4,000 secured by
mortgage upon the whole of it in the last ten years
and I should have been compelled to pay a ruinous
rata of interest. 1t lain idle. This
is the condition Of hundreds of planters
What we neei is credit; we have the
lands and labor. but no money and no credit. II We
could borrow money at four or five per cent Louisi
ana would produce more cotton and sugar and rice
than before tho war. This panic will not last. The
Constitutional Convention will be composed of our
most intelligent citizens and they will do nothing to
drive away capital and to destroy credit. 1t
is estimated that citizens of Louisiana have
invested S2,5O0,o0o in four per cent fed
cral bonds this winter and that $4,000,00O
of foreign capital have been withdrawn. As as
the convention shall assemble confidence will be re-
Grp,
basis. and all this capital will flow back into the
channels of business and enable in the country to
bring into cultivation rich lands and to give en-
ployment to the people. The city will be equally
benefited. for its life and prosperity depend upon
the crops think it but fair. although the debt has
been once scaled, that, owing to the calamities
have mentioned, the creditors Of the State should
consent to reduction Of the rate of interest. Seven
per cent is too high for public securities II the
rate Of in erest be reduced and be we'll secured and
it's punctual payment provided for. the creditors
will find that their bonds will improve. rcpose en-
tire confidence in the ability Of Governor Nichols
and Lieutenant Governor Wilt and the gentlemen
who have been selected to the committee to deal
with the situation"
WHAT NEW YORK BANKERS THINK OF THE
SITUATION
The slight excitement which existed in banking
circles on Thursday on account of the temporary
suspension of the banks in New Orleans had totally
subsidized yesterday. The correspondents in the city
of the suspended banks said that everything
quiet in New Orleans and that there danger of
panic. At the Third National Bank despatch was
received from the National Bank of Louisiana, of
which it is the correspondent stating that they had
all the money required, that the excitement had
passed away and that the merchants OF New Orleans
a6 <ho of Wv
Bankers say that the whole movement Of
the Clearing House at New Orleans was
done by the strong banks in order to protect them
selves from any trouble which might be precipated
by q the weaker banks 1t claimed that
after ten days the strong banks will resume and
those banks which are unable to keep up their bal
ances will have to go under. 1t is estimated by bank
ers that the total sent from this city to the
assistance of the New Orleans banks ST. 500 600
all that required. They say that when the
element is all this money will be returned to
this city deposit Bankers claim that the effect Of
this porary suspension Of the New Orleans banks
will be OF benefit to this city, because the withdrawal
of 81 900 from here will reduce proportio npfcly
the legal tender reserve and hanks will be thus en-
abled to claim and obtain sitter interest called
loans. There was no excitement Whatever on the
Cotton Produce exchanges. and the Temporary sus
pension OF the banks considered trifing matter.
A gentleman who arrived from New Orleans yestor-
day said that this suspension Of the banks in that
city was expected some t1me anu That the weak
condition OF the Southern and Mechanics and Trad
ers banks had been known for two weeks. The
failure OF the New Orlesns savings Institution about
fortnight since had caused temporary panic. A
great deal of the Investments of this savings insttu
ton We're in real estate. which. when appraised.
considered OF little value account of the heavy
arrears of taxes the property. This opened the
eyes of the larger banks and they premeditated this
plan of temporary suspension TO prevent SINH
lar to that on the savings banks. He said that the
suspension would not affect mercantile transactions
because all payments for cotton or sugar could be
made by drafts on New York.