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bonds advanced immediately, and but for the loss of the sugar crop in 1878 and the epidemic of last summer they would have continued to advance and entire confidence would have been once more restored. We have had but little credit since 1868. The 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 one-third of the land of Louisiana, formerly cultivated like a garden and enormously productive, has not been rescued from the thistle and weeds since the war. It is as fertile as ever and labor can be readily procured, but we have been compelled to pay from fifteen to twenty-five per cent for money. WANT OF CREDIT. "In fact we have had no credit. I have an estate of nearly ten thousand acres, with seven houses and machinery, ready for the plough, and the colored people have remained upon it cultivating small patches: but, while it would require $50,000 to put it in operation, I could not at any time raise $10,000 secured by a mortgage upon the whole of it in the last ten years and I should have been compelled to pay a ruinous rate of interest. It has lain idle. This is the condition of hundreds of planters. What we need is credit; we have the lands and labor, but no money and no credit. If we could borrow money at four or five per cent Louisiana would produce more cotton and sugar and rice than before the 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. It is estimated that citizens of Louisiana have invested $2,500,000 in four per cent federal bonds this winter and that $4,000,000 of foreign capital have been withdrawn. As soon as the convention shall assemble confidence will be restored and our credit will be placed upon a firm basis, and all this capital will flow back into the channe's of business and enable us in the country to bring into cultivation our rich lands and to give employment to the people. The city will be equally benefited, for its life and prosperity depend upon the crops. I think it but fair, although the debt has been once scaled, that, owing to the calamities I have mentioned, the creditors of the State should consent to a reduction of the rate of interest. Seven per cent is too high for public securities. If the rate of terest be reduced and be well secured, and its punctual payment provided for, the creditors will find that their bonds will-improve. I repose entire confidence in the ability of Governor Nicholls and Lieutenant Governor Wiltz, 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 subsided yesterday. The correspondents in the city of the suspended banks said that everything was quiet in New Orleans and that there was no danger of a panic. At the Third National Bank a 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 generally accepted the action of the Clearing House. Bankers say that the whole movement of the Clearing House at New Orleans was done by the strong banks in order to protect themselves from any trouble which might be precipitated by a run on the weaker banks. It was claimed that after ten days the strong banks will resume, and those banks which are unable to keep up their balances will have to go under. It is estimated by bankers that the total amount sent from this city to the assistance of the New Orleans banks was $1,500,000all that was required. They say that when the excitement is all over this money will be returned to this city on deposit. Bankers claim that the effect of this temporary suspension of the New Orleans banks will be of benefit to this city, because the withdrawal of $1,500,000 from here will reduce proportionately the legal tender reserve, and banks will be thus enabled to claim and obtain a stiffer interest on called loans. There was no excitement whatever on the Cotton or Produce exchanges, and the temporary anspension of the banks was considered a trifling matter. A gentleman who arrived from New Orleans yesterday said that this suspension of the banks in that city was expected for some time, and that the weak condition of the Southern and Mechanics' and Traders' banks had been known for two weeks. The failure of the New Orleans Savings Institution about a fortnight since had caused a temporary panic. A great deal of the investments of this savings institution were in real estate, which, when appraised, was considered of little value on account of the heavy arrears of taxes on the property. This opened the eyes of the larger banks, and they premeditated this plan of temporary suspension to prevent a run similar 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.
