Memphis Daily Appeal

The South to Bring About a
Commercial Revolution.
[From the New York World, Oct. 27.]

The Southern States promise to be the
active power by which our capitalists
and commerce shall be dragged out of
the rut in which they have been stagnated since 1865. Last year the South was
in debt, and its surplus money was mostly mortgaged to and swallowed up by Northern capitalists. This year they are comparatively free from debt, because their
credit is limited. Their crop of cotton,
tobacco, etc., are likely to realize in
money value more than ever, at least
$300,000,000. The Southern crops differ
from those of the North and West, essentially as far as they affect our money
markets, inasmuch as they command
specie in the markets of the world, even
on their own soil. Europe and America
compete to buy Southern products on
Southern soil, for cash, at the option of the Southerner, in greenbacks or gold. Besides the $300,000,000 of produce salable for cash, in the markets of Europe and America, the
Southerns, owing to their poverty and
the crushing policy to which they have
been subjected by Congress, and the sentiments which swayed Northern capitaliste have this year raised corn, wheat
and other food, which will leave them
with a larger amount of surplus cash on
hand than the South has ever seen in
any one year since the foundation of our
Republic. The Southern States before
this year were dependent on the Western States for the bulk of their food, but now they are not only wholly independent of them in this respect, but they have commenced to be exporters of wheat and flour. The Southern States will this year realize from their products a cash surplus and net profit, over and above all their expenses of living, of at least $60,000,000.

It is no use shutting our eyes to the fact
that there is a strong popular prejudice
against the national banks throughout
the whole Southern country, so that the
New York City bank managers will do
well to prepare in time for the absorption and retention in the South by private
hoarding of at least $60,000,000 in greenbacks, and perhaps some gold. The
New York banks are not in the condition they ought to be to respond to this
drain for $60,000,000 in greenbacks. The South will not be put off with national
bank notes, owing to the strong prejudice which exists against them there.
The temporary locking up of greenbacks
by stock gamblers, limited to about $10,000,000, is of trifling importance compared with the locking up of $60,000,000 greenbacks in the South. Reference to
the contraction of greenbacks by Mr.
McCulloch will awaken some doubt as
to whether the aggregate amount in circulation will be sufficient to respond to
this Southern drain for $60,000,000, without producing a financial crisis in the
North. On October 1, 1865, the amount