572 



FARMERS' REGISTER 



[No. 9 



activity, that for the want of like facilities, many 

 of our enterprising citizens, of no inconsiderable 

 private fortunes, go thither to profit by advan- 

 tages denied to them at home. 



Your committee do not refer to the commercial 

 ascendency of New York, and to the influence of 

 her bank capital in building up and sustaining it, 

 in any spirit of jealousy or complaint ; on ihe con- 

 trary, their object is to direct public attention to 

 what they regard as a valuable and powerful 

 agent in her policy, in the hope that it may lead 

 to more enlightened and liberal opinions among us. 



If there be those who would seek for an expla- 

 nation oi" northern commercial ascendency in other 

 causes than the one to which the committee has 

 reierred, none, it is presumed, can question that it 

 has been an efficient auxiliary. To doubt it, would 

 be to question the connexion between commerce 

 and credit, which the experience, not of this 

 country only, but of the whole world, has ascer- 

 tained to be inseparable. The inevitable tendency 

 of commerce is to those points where credit may 

 be obtained with the least discouragement, and 

 upon advantageous terms; and without credit, 

 commerce cannot rise far above simple barter, and 

 merchants have neither inducements nor space lor 

 their vocation. 



It would have been desirable to annex to this 

 report, a table, showing the bank capitals of the 

 great cities of the north and east, and in compari- 

 son, the small and inconsiderable capitals of Vir- 

 ginia and North Carolina. This has been omit- 

 ted for the want of documents from which to com- 

 pile it. The fact is however notorious, that there 

 is not a point in any part of our country distin- 

 guished (or commercial activity, which does not 

 possess, in an eminent degree, all the facilities for 

 banking; whilst the bank capital of this stale and 

 of North Carolina, has been, and is, not only re- 

 latively, but absolutely small, and wholly inade- 

 quate to their vast capabilities, and the exigencies 

 of trade. 



The legislature of this state, at the session of 

 1837, authorized an addition to the bank capital, 

 which has been in part only so far realised. The 

 law in respect to a part of this increase has been 

 suspended ; and if it should be the pleasure of the 

 legislature at an early day, again to bring the im- 

 portant subject under review, which is most earn- 

 estly and respectlully recommended, it is hoped 

 that the terms may be so settled as to attract sub- 

 scriptions from abroad. The true policy being to 

 recommend her institutions by relieving them 

 from onerous and unnecessary restrictions whilst 

 provisions be made against the abuse and perver- 

 sion of their powers. 



Resolved, as the opinion of this convention. 

 That an increase of banking capital upon princi- 

 ples so liberal as to attract capital from abroad as 

 well as at home, is necessary and indispensable to 

 aid our manufacturers in granting to the southern 

 merchants the same credits that are granted else- 

 where, and without which extended credits all the 

 natural and local advantages which enable us to 

 be eminently successful in competition with our 

 northern brethren, are either neutralized, or ma- 

 terially impaired. 



Report of the Committee on Manufactures. 



The committee very much regret that the ne- 

 cessity (or despatch, denies them the opportunity 

 of fulfilling their duties as they would desire. 

 They labor under the further disadvantage of hav- 

 ing no precise information in respect to several im- 

 portant points, where many branches of manufac- 

 tures have been m successful operation upon a 

 large and constantly increasing scale. They are 

 in a measure compelled to limit themselves to an 

 exhibition of the manufacturing condition of one 

 place only. But for this, their apology is, that 

 they have been furnished with no statements from 

 other places. For this, however, there is less 

 cause for regret, as it may be safely concluded of 

 the entire manufacturing interest of the state, that 

 it will advance and flourish, under the same com- 

 mon influence; and that, hitherto, wherever it has 

 been industriously and prudently conducted, it has 

 yielded an adequate return for the capital invest- 

 ed, and made valuable additions to the resources 

 of the state. 



The aggregate amount of capital of the seve- 

 ral companies of Petersburg engacred in the manu- 

 facture of cotton is 8772,000. There are 20,000 

 spindles and 670 looms, requiring 6500 bales of 

 cotton annually. The operatives employed are 

 1000, whose wages exceed S 130,000 per annum. 

 For the machinery and lights, they consume 

 about 5,000 gallons of oil, and for sizing about 

 1000 barrels of flour. The product is about 3,950,- 

 000 yards of cloth and 530,000 lbs. of yarns. 

 Accompanying this report is a table showing the 

 capital of each company, the extent of its busi- 

 ness, &c., and by it will be seen that the dividends 

 of two of the companies lor the first six months of 

 the present year have been 10 per cent., and of a 

 third company 13 per cent, on its capital. The 

 other companies having been but recently put 

 into operation, have as yet declared no dividends. 

 The dividends of past years have seldom (if ever) 

 fallen under 15 per cent, per annum, and have ge- 

 nerally reached beyond 20 per cent. This is an 

 encouraging view of this branch of industry; it 

 has been in existence about ten years, beginning 

 under many discouragements; but showing as it 

 has advanced, its capacity to sustain itself and to 

 reach a state of yet higher and more extended 

 usefulness. And it is obvious to remark, just aa 

 it progresses it will elevate the south from the con- 

 dition of dependence on the industry of the north 

 and east, and furnish the direct and indirect ele- 

 ments of foreign commerce. Whatever there- 

 fore tends to encourage cotton manufactures, and 

 for like reasons, whatever tends to encourage all 

 other branches of manufacturing interest, comes 

 directly in aid of the objects of this convention. 



Although these manufactories have continued 

 gradually to increase, and we believe the same 

 may be said of all the cotton manufactories of Vir- 

 ginia, yet they have been laboring under one great 

 and serious disadvantage, which operates alike 

 upon all the manufactures of the state, whether 

 individuals or incorporated companies ; namely, 

 (he want of sufficient banking capital, or the ap- 

 plication of a portion of that in a different channel, 

 so that the manufacturer who is compelled to pay 

 cash for the raw material and sell on creditmay be 

 enabled to reduce into cash the paper for which he 

 sells his goods. We believe that the cotton 



