FARMERS' REGISTER— COMMERCIAL REPORT. 



617 



COMMERCIAL RKPORT. 



To the Editor of the Fanners' Uegistcr. 



<S^(V, — Your corresponflent p;ree(syou ap;ainwi(li 

 no cheerful tidin^^s. Tlie clouds which obscured 

 our commercial horizon, when we last communed 

 together, have not dispersed, but on the contrary, 

 appear to be concentrating and assume a more 

 threatening aspect. 



The baneful effects of a disturbed currency, have 

 certainly been as yet, less felt by Virginia, than by 

 the Northern States; she is not so immediately 

 susceptible to its action, owing to her being less 

 commercial, and to its occurrence at a period 

 when but a small portioji of her agricultural pro- 

 duce, seeks a market at home, or an outlet toother 

 countries. 



The planter and farmer, however, though per- 

 haps unconscious of the fact, is obtaining a smaller 

 remuneration for his labors, than he has for many 

 years past, comparing the value w hich his products 

 bear in foreign markets, to that which he can real- 

 ize in his own. Had no derangement of currency 

 (and consequently of commercial facilities and 

 arrangements) been produced, every article of ex- 

 port would have commanded at this lime, from 

 one tenth to one fifth more in price, than it now 

 does ; — nor is this decline compensated in part, by 

 a similar one, in the most necessary articles of 

 foreign production, which will not freely seek our 

 markets, when commercial confidence is shaken, or 

 its continuance rendered doubtful. 



The depression of prices in this Eastern part of 

 Virginia, is slight, compared with tiiat which pre- 

 vails in other portions of the union. Here, Hour 

 has fiiUen only a dollar and a half per barrel, and 

 is nominally worth .^4 or 4^ : but on the Ohio, it 

 is reduced to about -92^^ per barrel, although the 

 last crop of wheat was not large, and no important 

 change has taken place in those foreign countries, 

 to which we usually export it. 



The prices of tobacco and cotton have lately 

 risen in Europe, without creating such a corres- 

 ponding advance here, as would have been excited 

 under the competition which formerly prevailed. 

 Public stocks generally, and foreign exchanges 

 are below |)ar — and state loans, which last year 

 commanded a large premium, are now offered, 

 without attracting a bid on any terms. Inland ex- 

 changes are nolonger equalized; the bank notes of 

 one state, are sold at a discount of several per cent. 

 in another state ; and a difference of two, three, or 

 lour per cent, is quoted in the market price of 

 bank notes issued in the same state. 



If a profit is derived by any party from this unu- 

 sual state of things, we have not the consolation of 

 knowing that one class of our community is enrich- 

 ed at the expense of another. The active capital 

 at home being diminished, leaves a vacuum to be 

 filled by that of foreigners, on whose forbearance 

 and liberality we must be dependant, and who will 

 doubtless strive to reap as rich a harvest as possi- 

 ble, from the field thus thrown open to them. 

 They may now invest their funds in our stocks, on 

 their own terms, if confidence in the stability of 

 them, does not deter the purchase. 



Heretofore, American enterprise and industry 

 have sought occupation in every sea and on every 

 shore; — but now, instead of numerous ships being 

 fitted out for voyages to China, or to seek cargoes 

 on the Brazil banks, or in the Pacific ocean, we 

 Vol. I.— 78 



hear that the ship owners are failing: We hear of 

 manufactories closed : the hod ancl trowel of the 

 mason, the mattock and spade of the canal maker 

 lie useless, and the thousands dependant on active 

 industry for supjwrt, have little else to do, than to 

 converse together and talk of their distresses. 



We hear that a metallic currency is to be the 

 blessed result of an experiment now in operation. 

 Perhaps some of your readers may remember the 

 time, when this blessing generally existed in our 

 southern and western states. W hen ])ack horses 

 were necessary to transport silver from beyond 

 the mountains, to the sea board, or when some 

 cunning trader would incase his dollars in a cask 

 of tallow or bees wax, and thus wagon his remit- 

 tances to market. But they will also remember, 

 that a few wealthy men could then monopolize the 

 trade of the country, fearing no reduction of their 

 exorbitant profits, from competitors, with mode- 

 rate funds aided by bank capital ; and they may 

 rememlier how the price of every article was con- 

 trolled in the absence of comi)etition. Truly, 

 that was the golden age, but the gold was in very 

 few hands. Spain has a purely metallic currency. 

 Where is her commerxe? 



A few years ago, tliere was an outcry made by 

 some of our wise political economists, that the 

 China trade ruined the country, by withdrawing 

 from it a vast amount of silver — (perhaps they did 

 not consider that, as silver was not produced in 

 this country, the China trade caused it to be brought 

 here) — but this outcry lias ceased for some years 

 past, because a substitute for silver was found in 

 the universal credit of a bank, Avhose bills, remit- 

 ted to Canton to pay for teas and silks, furnished a 

 medium for remittances from thence to Bengal or 

 Moscow, and after traversing almost the circum 

 ference of the glol)e, facilitating innumerable 

 transactions, ultimately reached the banker in 

 London, on whom they were drav.n: thus saving 

 the expense and risk of transporting the precious 

 metals, and the loss of interest during such transit. 

 Moreover, during the same time, a counter ope- 

 ration was going on, by shipments of our cotton, 

 tobacco, &c. to Europe; on which shipments bills 

 drawn by our merchants, were sold to the bank 

 and remitted to London, to meet tliose which were 

 finding their way from Asia. Nay, even the very 

 teas and spices were carried by our ships, to supply 

 several countries in Europe, and to replace in Lon- 

 don the very funds which had been used to pur- 

 chase them. This circuitous traffic gave employ- 

 ment to capital, which, in the form of bank stock 

 held by the government, or by individuals, thus 

 actively contributed to tlift wealth ?M. prosperity 

 of the whole country and indeed of other coun- 

 tries. 



Is it asked, wliether a substitute may not be 

 found, when the existing source of this immense 

 medium of negotiations shall beclosed.^ Undoubt- 

 edly there may. Some foreign capitalist, like lloth- 

 child, with credit as unbounded, as the institution 

 which has performed these functions, may place 

 his agents in our commercial cities, to furnish simi- 

 lar facilities : orders emanating from him may con- 

 trol the value of our public stocks, of our agricul- 

 tural products and the credit of our merchants. 

 His ^a' may govern the rates of Foreign and of 

 Domestic exchanges, and the amount of specie in 

 any of our state banks. They must be sub- 

 servient to hJm. If the federal -or state treasuries 



