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Pt^,  il-L-ji     e.    JtlL 


46-6,1 


THX 


MERCHANT'S  MAGAZINE 


ASD 


COMMERCIAL   EEYIEW. 


BDiriD  BT 

WILLIAM  B.  DANA! 


»>^t^^^»^t^i0^^^0*0^mm0^^t0m0tat0^0»m^f^f^i^0^^/^ 


TOIiVMB   SIXTY, 


FROM  JANUARY  TO  JUNE,  INOr.USIVa»  1869. 


^ 
f 


IXtm  Sork: 

IV  ILiLI A^  a  DANA,  PUBLISHER  AND  PROPBHTOR. 

VO.  TO  A  81  WILLIAIC  8TBSBT: 
1869. 


ALPHABETICAL  INDEX 


90  finraoii  cntTASMMB  n  tbm 


MERCHANTS'  MGAZINE  &  COMMERCIAL  REVIEW, 


TOLUXI  LZ« 


FBOM  JANUARY  TO  JUNE,  BOTH  INOLUSIVB. 


EDITED  BY  WILLIAM  B.  DANA. 


TAQM 

A, 

Aet  to  streoi^hMi  the  pablie  credit. .  220 
Aet  regnUuuig  report!  of  KAtiooal 

bulks 229 

Art  aboUihiiig  tnnsit  dotiM  in  Kew 

Jenej 229 

Alabama  qaettioo  hare  and  in  Eog- 

laod 405 

Albany  and  SnaqQehamia  Railroad..  101 

Bank  sharet,  flactoationB  in  pricM  o( 

fortwoyaara 64 

Bank  retnnB  of  New  York,  Boeton 
and  Philadelphia  . . .  .79, 160,  240, 

820, 400,  472 
Banks,  the  national  system  and  their 

items  of  reserve 187 

Banks  nf  each  State  (national)  retnrna  144 
Bank  of  Koglaod  retarns  for  year. .  •  166 
Banka.  act  r^golating  reports  of  Ka- 

tional 229 

Banking  Anodationa  (National),  ag- 
gregate rasoorcee  ot,  Oct    6S  to 

OcL'AS 27 

Banaers  aod  Vroken,  tazatioo  of  load's 

ascapiUl 184,244,  868 

Bankroptcy  and  ioeolvenef 1 98 

Bill  to  strengthen  th«  public  credit. .  220 
Bond porchMea  by  Government  •••  401 


pAon 
Bonda  of  the  XT.  8Utos  abroad  .175,  17S 

Boeton  bank  retarns,  weekly 80, 

160,240.820,400,  472 
Breadstoffs,  decline  in,  and  trade  of 

the  country 822 

Breadstn£EB,  production  and  distribn- 
tion  of 464 

ۥ 

Canals  of  New  York,  enlargement  of  826 
Chesapeake  and  Ohio  Railroad  . .  28 
Checks,  prohibition  of  the  certification 

of    200 

Chicago  an  1  Alton 227,264 

Civil  dervice,  British 210 

Oivil  service,  remarks  on  Mr.  Jeneks 

bill  ...     ..    ........218.  845 

Olsveland.  Oolambas^  Ouioinr>ati  sod 

Ind.  Railroad    231,  880 

Cleveland  and  Pittsbmig  Railroad  .  •  267 
Commercial  Ohrooiole  and  Review  . 

74,165.286,261,895,  467 
Consols,  prices  for  month. .  •  .76,  167, 

287.  284,  897,  469 
Commerce  of  New  York  for  year ...  106 

OottoD  crop  snd  the  Soatn 189 

Coinage,  unification  of. ...  248 

Cotton  crop  ttatt-ment  for  1868.  and 

overland  shipments 78 

Cnrrency  redemption  aod  Coogrets. .  246 


?1 


INDBX  TO  TOLUME   LX. 


P401 

Barien  Ship  oaoal 168 

Debt  statement  of    United  States, 

moDthly 161,228,816,843,  466 

Debt  and  fiDancea  of  South  C  iroliDa  1S7 
Debt  and  fioaoc^a  of  the  State  ot 

New  York 20h,  26' 

Debt  statement  and  Mr.  Boutweli's 

imprnyementa 268,  ^""1 

Delmar's  report  on  the  tariff 289 

Lepreciation  of  gold  and  idWer 1 

B. 

Edmonds  reaolation.   ...   94 

Eg  pt,  financial  position  of 459 

Erie  Railway 8  6 

Europe,  the  new  year  in 62 

Evans v.Ue  and  Crawfordayille  Rail- 
road ...  , .     26 
Eichaige.  foreign  qur  tations,  of  ibr 

two  yeara 66 

Exchange,  quotations    monthly    78, 

160,289,286,899,  471 

F. 

Finance  Bill  of  Aerator  Morton 78 

Foreign  exchange,  quotationa  far  two 

yars....  £6 

ForeiKO   exchange,    monthly  qn^^ta- 

tiooB 78,  160,  289, 2;j6,  899 

O. 

Go  d  and  silver.  Depreciation  of  . .  1 
Quid  course  of,  prices  for  five  years.  47 
Ootd,  prices  of,  fur  month.  •  .78,  1  9, 

?.s9,  i85,  899,  47" 
Gold  premium,  the  influences  u  w 

affecting  the  course  of     .  .  24  2 

G.'ld  c-  litracts  lettaliaed^^sopy  deci- 
sion of  the  Supreme  Court        ...  268 
Qovemmentseeuritida,  range  i  f  prices 

for  1868   68 

G<»vernment  securities,  prices  of,  for 

month   ...  76,  167,  2S7,^8S,  .^97,  4  8 
Ouvtrrnroent  telegrapti  system  pro- 

posed  and  oppose  i  97 

Govertinient  porchasepof  bon  is  ....  4   1 

Great  BnUm,  trade  of 6/,  288 

Great  Bcitdio,  agricultural  statistics 
of 481 

Eudpon  River  Railroad   262 

Huron  and  Ontario  canal 86 

!• 

nUnois  Central  Railroad 257 

Internal  revenoe  receipts  for   ibur 

yeara ..      ...•••••  108 

lU\j,  financial  litoation  of 461 


li. 

Legal  tender  decisiona,  their  scope 

ahd  reaolts 181 

Liod  and  water  carriage. •» 878 

Maine,  water  power  of. ...  • 116 

vlirh  f^an    Southern    and    Northern 

Indiana  Railroai  810 

Milwauke  •  and  St.  Paul  Riilway  ..  440 
Mouey  market,  coarse  of  monthly  74, 

166,286,281,896,467 

N. 

National  banking  associations,  ag. re- 
gale r''SOurces  and  liabilities       27,  471 
Kali  ioal  Bank  system.items  of  i esf  rve     88 

Ntttional  Hank  r<i  aroa 144 

National  Banks,  act  regulating  repo.  ts 

of ....     .  229 

NaugRiock  Railroad  C  >mpaoy 280 

Ne     Tor»  Central    iviJeod 66 

New  York  bank  returns,  weekly.  79, 

160,240,820,400,472 
New  York,  com  eree  of  for  yt-ar ...  06 
New  Turk  and  tunnel  railroads  ....  142 
New  York  8tate,  debt  and  fioanct^s 

of  208,261 

New  York  Central  Railroa  t         ....  221 
New  Y  rk  and  N«f  w  Haven  Railroad.  264 

New  Y  rk  horse  railroads 480 

New  Jersey  transit  duties  abolished .   'J29 
NnrfoU   and   New   York,  why  one 
grew  and  the  other  did  not     .   .   •     81 

Ohiorailr  ads ISO 

Ohio  and  Misinsippi  Railroad  281 
Uar  foreign    ndebtedness,  its   advan- 
tages aud  diradvantagee 1  6, 178 

P  ices  of  merchandise  for  eight  years.     87 
Pt  ices  of  gold  for  fivH  years  .......     47 

Prices  at  N  w  Y  >rk  St  ck  E  change 

for  t'>ree  ye^rs 8 

'rioen  bank  shares,  two  years 64 

Prices  of  goverumeot  securities  for 

month  ....  76,  67.  '87,  .'t<8,  897 
Prices  of  ifold  for  month. 78,  169,  289,  286 
Prices  of  railroad  stocks  f  »r  monti 

76,  16S288.  2-4,  .397 
Prices  of  consols  and  A.u)erican  secu- 
rities... 76.  167.  28/,  284,  897 
Prices  of  ezcha "ge  for  month     .  .78, 

160,  289.  286,  897 
Philadelphia  bank  returne  weetly 

79,  160,  24 '.820.  400,  4 '2 
Phila  lelphia  and  Reading  Raiir  ^ad       189 
Ptrtsbu  g.  Fort  Wayne  and  Chicago 
and  Cleveland  aud  Pittsburg  ....  267 


nrDSX  TO  YOLUMX  LX. 


▼ii 


rAOB 


PoUie  debt,  moDthlj  itatement  161, 

228,816,848,  466 

Poblie  credit  bill,  copy  of ....  220 

Public  credit  bill  ana  advaDce  of  fl?e' 
tweoUee. 226 


QnickeilTer  and  Mldng  company.  •  •  817 


Bailroads  of  the  world 889 

Bailway  eooiolidatioD 870 

Rulroad,  Milwaukee  and  St.  Paul..  449 
Bailway  Block,  watering  of  ••..8''7,  447 
Bai  road     etocke,    pricee    of    each 

month 76,  168,  288,  284,  897 

Bailroad  eiockB,  pricee  of,  for  three 

Teara 88 

Bailroad  atoeka,  pricea  of,  for  month 

76,  168,  2H8,  284,897,  469 

Bailroad  eaminga  for  1868 129 

BaQroada,  their  influence  in  develop- 

ing  the  wealth  of  the  country ...  •  161 
Bailroad  eaminga  Ibr  month.  •  •  .284, 

808,.  882 

Baihoad,  horae  of  New  Tork 480 

Bailroada  of  PenneyWania,  reporta  of.  818 

Bailroadaof  Ohio 130 

Bailroad,  Albany  and  8u«qnehann%.  101 
Bailroad,  Chicago  and  Alton. . .  .227,  264 
Bailroad*  ClcTeland,  Oolumbna,  Gio- 

dnoat)  and  Indianapolia 281,  880 

Bailroad,  Cheiapeake  and  Ohio 28 

Bailroad,  EYana?ille  and  Orawfbrda- 

TUle 26 

806 

Biyer 262 

Bailroada,  Illinoia  Central,  Pittabmg 

and  Fort  Wayne,  Cleyeland  and 

PSttabuig 267 

Bailroad,   Michmn    Southern   and 

Northern  Indmna 810 

Bailroad,  New  Tork  and  New  Ha?en  264 

Bailroad,  New  York  Central 221 

Bailroid,  Ohio  and  Miaaiaaippi 281 

Bailroad,  Philadelphia  and  Beading.  191 

Berenoe^  apedal  report  on  the 69 

BercDuey  internal  receipta  for  four 

yean 108 


Tkmm 
Redemption  of  the  currency  and  Con- 
greaa • 246 

8. 

Specie  paymepta,whatbaaia  have  we 

for  reaomption  of 82 

Specie  mo?ement  at  New  Tork  from 

1869tol868 68 

Specie  paymenta,  a  way  to  return  to.  1 20 
8pecie  paymenta,  the  reanmption  of, 

and  the  condition  of  the  country  184 
South  Carolina,  debt  an  i  financea  of.  187 

South  and  the  next  cotton  crop 189 

Stock  exchange,  conrae  of  pricea  at, 

for  three  yean , 8tt 

T. 

Taxing  Wall  atreet 244 

Taxation  of  loana  aa  capital. .  • ,  184,  868 

Tariff  Delmar'a  repi  rt  on 289 

Teleicrapn   ayalem    by  government, 

proposed  and  op poeed 97 

Trade  of  Oreat  Britain  .       •  •  •  .162,  288 

Trade,  aapecta  of  our  foreign 840 

Transportation  from  Weat  to  the  Beat, 

how  to  cheapen 886 

Traosportation,  land  and  water 878 

Treasure  moTemeuu  at  New  Tork, 

1869—8 68 

Tunael  railroada  for  New  Tork 142 

17. 

United  Statea  debt,  monthly  atate- 
meot 161,268,816,848  466 

United  ^^tatea  booda  abroad— adyan- 
tagea  and  diaad?antBgee. ...  176,  178 

United  Sutea  and  Great  Britain— 
their  rehttiona 407 

Virginia,  debt  of •    78 


Wall  atreet  aa  a  anbject  of  taxatioQ.  244 

Water  and  land  carriage 878 

Watering  railroad  atocks 877,  447 


T. 


TantM  Kiang  Bi 


824 


TH2 


MERCHANTS'    MiaAZlNE 


AHD 


COMMERCIAL     REVIEW. 


JANUAEY,     186  9. 
THE  GOID  (IVESTION.* 

DSPRSOIATION   OF   GOLD   AKD   BILYER. 

The  money  question  is  again  the  order  of  the  day ;  it  was  raised  some- 
time after  the  discovery  of  the  placers  of  California  and  Australia,  when 
the  amount  of  specie  was  greatly  increased  by  the  supply  of  gold.  F  -r 
seyeral  years  in  fact  these  placers  yielded  for  each  country  300  or  400  m.l- 
lion  francfty  say  700  millions  for  the  two  [about  140  million  dollars]. 
The  greater  part  of  this  gold  was  exported  and  reached  the  great  com- 
raerdal  centres — the  United  States,  England  and  France.  There  had 
been  nothing  like  it  for  centuries — since  the  discovery  of  the  famous  silver 
mines  of  Mexico  and  Peru.  Before  1848  the  production  of  the  precious 
metals  in  the  entire  world  was  probably  from  400  to  450  million  francs 
[80  to  90  million  dollars],  and  yet  it  had  nearly  doubled  since  the  com- 
mencement of  the  century  from  the  working  of  the  new  silver  mines  of 


*  TitaslAt«4  frsn  th*  **  B«t««  das  deaz  XondM  **  tor  Bii&t*s  Xsrchtati*  MigMrtne, 

1 


2  TBI  GOLD  QUKsnov.  [January^ 

Russia.  But  witb  a  sudden  bound,  in  a  few  years,  we  pass  from  460  mil. 
Hon  francs  to  1100  or  1200  millions.  It  is  natural  that  some  anxiety  sHonld 
have  been  felt  at  this  state  of  things,  and  that  its  consequences  upon 
political  economy  should  have  been  studied.  It  was  asked  especially  if 
gold,  which  was  becoming  so  abundant,  would  not  lose  its  value,  and  if  it 
was  not  wise  to  devise  means  of  avoiding  as  much  as  possible  the 
effects  of  depreciation.  This  precaution  seemed  to  be  demanded  by  those 
States  which  had  either  the  silver  standard  or  the  double  standard  [silver 
and  gold].  Those  which  had  the  silver  standard  adhered  to  it  more  rigor- 
ously than  ever,  and  those  which  had  both  were  induced  to  proscribe 
gold  as  legal  coin,  reserving  its  use  simply  for  commercial  purposes.  It 
was  under  the  influence  of  this  prejudice  that  in  1849  Holland  withdrew 
its  gold  from  circulation,  and  that  some  years  after,  the  example  was  fol- 
lowed by  Belgium.  In  France  there  were  also  some  very  clever  men  who 
urged  our  country  to  follow  the  example  of  Belgium  and  Holland  and 
return  to  the  exclusive  use  of  silver,  which  they  considered  the 
true  monetary  standard  of  France,  by  virtue  of  the  law  of  Germinal 
in  the  year  XL  Our  Government  was  not  induced  to  do  this,  preferring 
to  remain  in  statu  quo ;  and  some  years  after,  public  opinion  underwent 
some  change,  At  first  it  was  rather  pleasant  to  see  gold  substituted 
gradually  for  silver,  which  bore  a  premium,  and,  consequently,  disap- 
peared from  circulation.  It  was  found  that  the  new  coin  was  more  con- 
venient and  easier  of  transport^  and  finally  as  people  became  convinced 
that  this  gold,  although  supplied  in  abundance,  was  needed  for  circulation^ 
and  did  not  even  fully  supply  the  demsnd,  tbey  ceased  to  be  alarmed  at 
the  annual  production  of  seven  or  eight  hundred  millions  in  America.  In 
fact,  in  1856,  when  the  mines  had  already  furnished  to  the  world  six  or 
seven  thousand  millions  of  francs,  the  precious  metnls  became  very  scarce 
discount  reached  six  or  seven  per  cent  in  England  and  France,  and  the 
principal  financial  establishments  of  these  two  countries,  which,  in  1852 
and  1853  had  had  a  cash  reserve  of  five  or  six  hundred  millions,  were 
straightened  to  maintain  it  at  two  hundred  millions.  It  will  be  remem- 
bered that  the  Bank  of  France  made  considerable  sacrifices  to  supply 
itself  with  coin  ;  it  purchased,  from  1855  to  the  end  of  1857,  one  thousand 
three  hundred  and  seventy-eight  millions,  for  which  it  paid  in  premiums 
the  sum  of  15,883,000  francs.  The  same  thing  occurred  in  18G3  and 
1864 ;  silver  became  very  dear,  and  the  cash  reserve  of  the  Bank  of 
France  and  the  Bank  of  England  sank  below  two  hundred  millions  ;  it 
was  even  urged  upon  our  principal  financial  institution  to  sell  its  stock  in 
order  to  obtain  the  precious  metals.  After  this  experience  several  times 
repeated,  of  the  deamess  of  gold,  notwithstanding  the  production  of  the 
minesi  no  one  concerned  himself  longer  with  the  question  of  specie. 


1869]  THi  GOLD  qrasnov.  3 

Bat  things  dhange  rapidly  in  this  world,  and,  among  tke  rest,  the 
pbeDomena  of  political  economy.  Three  yean  had  not  elapsed  after  the 
criiis  of  1854  before  things  appeared  in  an  entirely  different  aspect.  The 
specie  roierye  of  the  banks,  instead  of  decreasing  at  interrals  as  formerly, 
oratioued  to  increase,  that  of  France  in  particular.  In  the  middle  of 
1805,  the  6th  of  July,  it  had  reached  fire  hundred  and  twenty-one  mil- 
lum'f  in  1806,  seven  hundred  and  eighty-one  millions;  in  1867  it 
ittsioed  to  the  famous  one  thousand  millions;  and  finally,  the 
present  year,  it  oedllatee  between  twelve  and  thirteen  hundred 
millions,  which  nothing  seems  to  diminish  materially;  neither 
Ae  stock  of  cereals  which  we  have  been  obliged  to  purchase 
to  meet  the  deficiency  in  the  harvest,  nor  the  acquisition  of  raw  ma* 
teriai  for  our  manufactures,  nor  even  the  expense  occasioned  by  our 
pieparations  for  war.  In  view  of  this  fact,  which  has  exercised,  and  still 
does  exerdse  all  minds,  the  attention  is  recalled  to  the  question  of  the 
enrreiicy ;  it  is  again  asked  if  we  have  not  reached  the  time  when  the  pro- 
doetion  of  the  mines,  after  having  filled  all  the  channels,  and  satisfied  all 
demands,  is  about  to  overflow  and  cause  a  serious  depreciation  of  specie. 
One  recalls  what  took  place  after  the  discovery  of  America.  From  1492 
to  1530,  in  spite  of  the  relative  abundance  of  the  precious  metals,  which 
wss  experienced  from  the  first  discovery  of  the  New  World,  there  was  no 
sppriciable  change  in  the  price  of  things — money  preserved  its  full  value 
— bat|  eommencing  with  1580,  depreciation  made  rapid  progress,  and  in 
the  coarse  of  a  century,  according  to  some,  three-quarters  of  a  century, 
sccording  to  others,  the  revolution  was  accomplished ;  the  value  of  the 
precious  metals  was  thre  or  four  times  less,  that  is,  merchandise  which  was 
exchanged  in  1492  and  again,  in  1530,  for  a  certain  weight  of  gold 
hrooght  triple  and  quadruple  the  amount  in  1620  or  1680.  Can  we  now 
be,  SB  in  1530,  on  tb«  eve  of  a  new  monetary  revolution,  and  have  we 
JQst  traversed  the  intermediary  stage  when  the  precious  metals,  abundant 
tt  they  are,  still  find  a  demand  f  Does  the  production  commence  to  be 
largely  in  excess,  and  is  it  to  this  that  we  must  attribute  all  the  specie 
TQsenreof  the  principal  financial  institubions?  These  are  the  questions 
which  are  proposed  to-day,  and  which  we  wish  to  examine  without  pre- 
tending to  give  them  a  practical  solution,  for  it  is  very  evident  that  if  the 
depredation  of  the  piecious  metals  were  found  to  be  real,  it  would  be  im* 
possible  to  prevent  iL  In  any  event  it  would  be  well  to  know  it,  in  order 
to  know  how  to  regard  certain  facts  in  political  economy,  which  we  observe 
without  inquiry  into  their  causes. 

We  shall  astonish  many  persons  perhaps  in  saying  that  the  money 
qaestion  is  itill  an  obscure  subject  in  political  economy.  Yet  its  use  has 
been  known  for  a  very  long  time  ;  it  would  be  necessary  to  go  back  to 


4  THB  GOLD  QUSSnOK.  [JanfMfj^ 

the  iD&Doy  of  society,  to  the  barbarous  epochs  even,  in  order  to  find 
exchanges  made  otherwise  than  with  a  metallic  medium.  The  Greeks, 
the  Romans,  and  before  them  the  Assyrians  employed  it :  it  was  of  bronze, 
silver  or  gold,  according  to  the  resources  of  the  country  and  the  state  of 
civilization,  but  it  existed  every  where,  and  it  was  in  that  form  that  riches 
were  particularly  sought.  It  is  a  long  time  that  men  have  been  called  to 
meditate  upon  the  use  of  a  metallic  currency  and  upon  the  influence  which 
it  can  exert  in  the  political  economy  of  a  people ;  but  as  nothing  is  simple 
in  the  phenomena  of  political  economy,  depending  as  they  do  upon  a 
thousand  things  which  cause  them  to  vary  with  times  and  circumstances* 
it  often  happens  that  in  studying  these  phenomena  at  diflferent  epochs,  we 
arrive  at  very  different  conclusions.  That  which  is  certain,  and  we  think 
it  can  be  demonstrated,  is  that  there  are  great  errors  disseminated  upon 
the  subject  of  the  use  of  a  metallic  currency,  and,  I  repeat,  it  is  one  of  the 
points  of  political  economy  upon  which  science  is  the  least  employed. 
In  speaking  thus  we  have  no  reference  to  the  opinions  of  those  whoimagme 
that  a  metallic  currency  is  a  useless  expense  which  society  imposes  upon 
itself,  that  we  should  gain  by  ridding  ourselves  of  it,  and  that  it  would  be 
easy  to  carry  on  all  tran  tactions  with  some  other  instrument  of  exchange, 
some  conventional  thing  of  no  intrinsic  value,  such  as  paper  for  example^ 
We  have  several  times  seen  this  system  in  operation ;  we  see  it  yet  unfor- 
tunately every  day  ;  we  know  what  it  produces,  and  no  reflecting  mind 
can  view  it  with  favor ;  but  there  is  another  much  more  serious  school 
which  has  cdmbatted  successfully  the  extravagance  of  the  mercantile  sys- 
tem, but  has  found  riches  in  nothing  but  metallic  currency,  and  has  sought 
to  acquire  the  greatest  possible  amount  of  it ;  this  school  has  committed 
another  extravagance  in  refusing  to  give  to  specie  that  peculiar  import, 
ance  which  it  deserves.  Hence  the  erroneous  condusions  derived  from 
what  has  taken  place. 

Upon  the  utility  of  money  there  is  a  figure  in  an  American  author 
strikingly  appropriate.  ''Th  e  precious  metals,"  says  Mr.  C&^ey,  "^  are  to 
the  social  body  what  the  atmosphere  is  to  the  physical  world  ;  both  fur- 
nish the  means  of  circulation,  and  the  dissolution  of  the  physical  body  into 
its  elements,  when  deprived  of  the  one,  is  not  more  certain  than  the  dis- 
solution of  society  when  deprived  of  the  other."  This  is  substantially  the 
character  of  a  metallic  currency :  it  is  an  instrument  of  circulation,  par 
excellence,  that  which  extends  the  use  and  gives  value  to  the  more  sub- 
stantial things.  In  order  that  an  article  of  merchandise  may  have  great 
stability  in  value,  there  is  need  of  two  things :  first,  that  it  have  an  exten- 
sive market,  and  secondly,  that  it  can  be  kept  a  long  time.  If  it  has  only 
a  limited  market  and  is  perishable,  however  useful  it  may  be,  it  cannot 
escape  the  immediate  eflfects  of  the  law  of  supply  and  demand  which 


1869]  THS  GOLD  Qussnov.  6 

il 

operates  upon  it  in  the  market  where  it  is  sent.  Take  wheat  for  example. 
ThAi  article  of  food  is  un<^oubtedly  very  useful,  it  can  have  a  very  exten- 
nVe  market;  but  it  is  not  convenient  and  easy  of  transport,  and  cannot  be 
sent  far;  besides  it  is  subject  to  rapid  deterioration.  If,  then,  wheat  is 
produced  in  a  much  greater  quantity  than  is  needed  for  immediate  con' 
sumption  within  the  limits  of  its  market,  it  must  fall  in  price  and  it  wil^ 
decline  so  much  the  more,  for  the  reason  that  it  can  hardly  be  kept  in 
store  to  wait  for  the  equilibrium  to  be  better  established  in  supply  and 
demand.  It  will  be  the  same  with  any  other  article  of  merchandise  which 
is  less  perishable  and  more  convenient  of  transport,  provided  it  is  not  so 
useful.  If  it  exists  in  a  greater  quantity  than  is  needed  for  the  almost 
immediate  use  for  which  it  is  destined,  it  will  necessarily  depreciate,  for 
the  fashion  may  change  and  with  it  the  use  of  the  article  may  cease* 
The  precious  metals,  on  the  other  hand,  unite  a  universal  utility  with  a 
durability  which  exceeds  that  of  any  other  product ;  they  are,  besides, 
conveuieot  and  easy  of  transport,  are  not  subject  to  ibe  caprices  of  fashion, 
an  1 'consequently  everything  is  in  their  favor.  Suppose  the  consumption 
of  cereals  in  France  to  be  120  millions  hectolitres*;  if  a  good  harvest 
furnishes  140  millions,  and  the  markets  surrounding  have  nearly  what 
they  need,  this  seventh  part  which  is  in  excess  of  the  ordinary  consump- 
tion can  cause  a  decrease  in  price  of  one  quarter  and  perhaps  a  third — we 
ha?e  seen  it  many  times.  On  the  other  hand,  in  years  of  scarcity,  ofLen- 
times  A  deficit  of  10  or  12  millions  of  hectolitres  is  sufficient  to  send  the 
price  up  in  the  same  proportion.  Not  only  has  metallic  currency  a  very 
extensive  market  and  one  always  open,  which  renders  a  surplus  more 
diflficult,  but  its  market  has  no  appreciable  limit,  it  can  expand  indefinitely 
Today  the  commercial  relations  are  maintained  with  30,000  millions  of 
money,  to-morrow  it  will  take  perhaps  40,000  millions,  and  subsequently 
more  in  proportion  as  the  commercial  relations  are  extended.  There  is 
another  fact,  and  it  is  one  which  has  escaped  certain  writers  upon  poiiti* 
cal  economy.  The  precious  metals  have  of  themselves  developed  business 
which  eventually  absorbed  them,  and  thus  have  acted  at  the  same  time 
both  as  cause  and  effect.  It  is  often  said  that  man*6  ability  to  produce  is 
unlimited  like  his  ability  to  consume ;  it  depends  only  upon  the  supply 
ofnecessarj  instruments,  and  the  first  in  importance  of  these  instruments 
is  certainly  that  which  extends  his  relations  with  Lis  fellow-man.  This  is 
the  service  which  a  metallic  currency  performs.  Like  railroads,  it  brings 
the  products  to  the  consumers,  and  this  ready  supply  increases  the  num- 
ber of  consuraera  and  consequently  the  quantity  consumed.    Tou  have 


*  ▲  hectolitre  is  aboat  t.75  bnahols. 


S  Till  GOLD  Qussnov.  [JanMory^ 

wine,  woolen  fabries,  manufaotured  products  of  any  kind,  with  which  yon 
wish  to  purchase  wheat,  cotton,  sugar  and  colonial  comnioditiea ;  but  it 
may  be  that  the  people  who  have  these  commodities  may  not  need  at 
this  time  your  wine  and  your  fabrics.  They  will  not  take  them  in  ex- 
ahange,  or  if  they  take  them  it  will  only  be  on  conditions  unfavorable  to 
you ;  you  will  abstain  then  from  buying,  and  the  holders  of  these  com- 
modities will  not  sell  them  till  they  have  found  a  person  who  has  the 
products  which  they  wi^h  in  exchange.  In  the  meantime  see  how  the 
industrial  pursuits  are  checked  in  their  development,  because  the  people 
are  not  furnished  with  a  medium  of  exchange  adapted  to  their  wants* 
The  precious  metal  presents  itself  and  a  medium  is  furnished. 

Every  one  purchases  the  products  he  needs  without  taking  the  trouble 
to  inquire  whether  the  merchandise  which  he  has  is  suited  or  not  to 
those  who  sell  to  him ;  he  is  certain  of  a  means  of  payment  which  will 
not  be  refused.  In  this  manner  products  are  distributed,  production  is 
increased,  and  with  it  the  public  wealth.  A  very  conscientious  and  very 
competent  author,  who  has  written  the  best  things  upon  the  influence 
exercised  by  the  abundance  of  the  gold  mines,  M.  Newmarch,  has 
endeavored  to  explain  this.  **The  dbcovery  of  the  gold  mines,"  he  says, 
**  has  had  the  effect  to  increase  wages  and  riches  in  the  countries  where 
they  are  found,  and  to  attract  there  [a  large  population,  which,  being 
enriched  by  the  mines,  has  consumed  a  much  larger  quantity  of  the 
manufactured  products  of  other  countries  with  which  they  have  been 
connected.  These  countries,  in  their  turn  realising  profits  from  their 
ezportations,  have  also  become  consumers  to  a  much  greater  extent,  of 
the  products  of  other  countries ;  and  thus,  in  consequence  of  the  remu- 
nerative employment  derived  from  the  opening  of  the  gold  mines  at  one 
point  on  the  globe,  the  industrial  pursuits  and  commerce  have  become 
active  everywhere."  This  explanation  has  unquestionably  its  value,  but 
touches  only  the  smallest  side  of  the  question.  It  is  as  if  it  were  held 
that  railroads  have  only  been  useful  for  the  employment  they  have 
furnished  in  their  construction  and  what  they  still  furnish  in  their 
operation.  On  this  supposition,  if  instead  of  gold  mines,  iron  and  copper 
mines  had  been  worked,  which  had  yielded  the  same  proOts,  the  result 
would  have  been  the  same,  since  it  would  equally  have  furnished 
markets  for  the  manufactured  articles  of  other  countrirs.  One  can  under- 
stand perfectly  that  such  would  not  have  been  the  case,  and  that  gold 
mines  have  had  an  efiect  beyond  furnishing  a  field  for  remunerative 
labor ;  they  have,  like  railroads,  put  in  mens'  hands  the  most  efiective 
lever  for  developing  public  wealth. 

Many  things  have  been  invented  since  the  beginning  of  the  world 
which  have  aided  the  progress  of  civiliaation,  but,  aside  from  printing. 


1869]  TBI  GOLD  QUXRIOir.  7 

there  is  nothing  which  has  had  Uie  influence  of  railroads  and  the  precious 
metals,  and,  we  may  also  add,  the  electric  telegraph.  Railroads  not  onlj 
fiimisb  means  of  distributing  the  products  along  their  lines,  but  they  also 
hare  the  merit  of  making  more  products ;  we  have  proof  of  this  every 
day  before  our  eyes.  A  railroad  is  constructed  in  a  country  which  was 
destitute  of  them  ^and  had  not  the  means  of  easy  communication ;  the 
fiist  year  the  transportation  is  very  limited,  the  second  year  it  increases, 
snd,  after  a  short  time,  the  rolling  stock  is  insufficient,  its  capacity  is 
overtaxed*  What  has  happened  to  bring  about  such  a  result?  It  has 
been  simply  the  fact  that  new  branches  of  industry  have  been  created 
sIoDg  the  line,  that  those  which  existed  have  been  developed,  and  this 
has  happened  because  the  people  have  had  at  their  command  convenient, 
n{»d  and  che«p  means  of  communication.  It  is  the  same  with  the 
precious  metals.  A  discovery  like  that  of  the .  placers  of  California  and 
Australia,  by  furnishing  to  the  world  a  great  quantity  of  the  instrument 
of  exchange,  acted  necessarily  upon  business,  and  gave  it  a  greater 
development,  a  result  inconaistent  with  the  reasoning  of  those  who  hold 
that  the  working  of  mines  is  an  improductive  labor,  because  it  only  helps 
incresse  the  weight  of  money;  it  also  shows  the  insufficiency  of  M. 
Newmarch'a  explanation  that  there  is  no  source  of  riches  in  the  new 
mines  except  in  so  far  as  they  have  furnished  employment  for  the  laborer, 
M.  Hume  h<i8  said,  in  speaking  of  specie,  that  it  was  not  one  of  the 
wheels  of  commerce,  that  it  was  only  the  oil  which  makes  the  movement 
essier  and  more  agreeable.  We  think  he  is  mistaken,  and  that  money  is 
precisely  one  of  the  wheels  of  commerce,  and  one  of  the  most  essential  l 
hot  following  out  his  illustration,  we  still  find  that  the  more  abundant  the 
oil,  the  more  means  we  have  to  give  activity  to  the  wheels,  and,  therefore, 
the  more  is  accomplished.  The  gold  mines  have  of  themselvea  aided  the 
commercial  movement  which  has  resulted  in  absorbing  them. 

I. 

Aooording  to  this  school,  in  time  of  a  crisis,  when    the  metallic 
currency  becomes  scarce  and  leaves  the  country,  there  is  no  occasion  to 
feel  eoncemed.    Products  are  exchanged  for  products  and  it  matters  very 
little  whether  we  export  specie  or  anything  else.     We  do  not  export  for 
nothing ;  it  is  a  traffic  analagous  to  that  of  exchanging  wine  for  iron  or 
ulk.    It  is  only  necessary  to  let  things  take  their  course  and  the  equili- 
brium will  establish  itself  naturally.    It  is  thus  they  reason  who  see  in 
the  precious  metals  only  an  article  of  merchandise  like  anything  else. 
Nevertheless  experience  teaches  us   that  in  a  time  of  crisis  when  silver 
goes  oat  of  circulation  and  becomes  scarce,  society  is  otherwise  effected 
thsn  by  the  extraordinary  exportation  of  wine  or  any  other  product.    If 


TBK  GOLD  QUVsnoK.  [January^ 

we  export  more  wine  thsn  the  local  demand  will  admit  of,  and  it  becomes 
dear,  the  consumption  of  the  country  will  be  perhaps  a  little  disturbed, 
and  the  people  will  drink  less  wine  than  ordinarily ;  but  the  producers 
of  that  supply  will  be  enriched ;  they  will  become  consumers  upon  a 
greater  scale,  of  the  products  of  other  industry,  and  on  the  whole  the 
country  will  have  gained  by  it  more  than  it  will  have  lost  The  incon- 
venience will  be  partial  and  the  advantage  will  be  general.  It  is  not  the 
same  in  respect  to  money ;  a  crisis  comes  for  some  reason  or  another ; 
we  are  debtors  abroad  beyond  what  we  are  able  to  pay  by  the  regular 
course  of  commercial  exchange,  we  must  pay  the  differences  in  money, 
and  these  demands  encroach  upon  the  stock  which  is  needed  in  the  coun- 
try. The  specie  reserve  in  the  banks  diminishes,  gold  and  silver  are  in 
demand  and  become  very  dear.  What  is  the  result  ?  Is  there  a  point 
where  the  evil  may  be  stopped — ^Not  at  all.  Commerce  and  all  branches 
of  industry  are  at  once  affected  everywhere.  There  is  no  one  who  does 
not  suffex  from  the  difficulty  in  obtaining  silver  and  from  the  high  price 
it  commands.  A  metallic  currency  is  the  base  which  sustains  all  tran- 
sactions, the  pivot  upon  which  they  all  turn.  It  is  possible  by  a  skillful 
arrangements  in  using  credit  to  increase  the  circle  of  these  transactions, 
but  it  is  not  possible  to  do  away  with  the  base  nor  weaken  it  sensibly 
without  damage  and  great  damage  to  society. 

It  is  to  be  remarked  here  that  a  metallic  currency  becomes  the  more 
necessary  when  there  is  a  crisis.  Credit  then  fails  and  everyone  seeks 
that  which  affords  the  greatest  security  in  business,  that  is  specie.  If 
then  at  these  times,  trusting  to  the  general  maxim  that  afler  all  products 
are  exchanged  for  products,  there  were  no  especial  attention  paid  to  arrest 
the  exportation  of  money  by  effective  means  such  as  may  be  used  to  ad- 
vantage, for  example,  a  sudden  advance  in  the  price  of  discount,  we 
should  soon  be  thrown  into  the  greatest  embarrassments,  no  industry 
would  escape  the  effects  of  it,  and  we  should  see  our  commerce  declining, 
as  in  the  countries  where  paper  money  rules.  A  metallic  currency  is 
still  more  than  the  base  of  commercial  operations,  it  is  the  main  spring 
which  sets  in  motion  the  active  operations  of  a  country.  We  have  no 
need  to  cite  examples  in  support  of  this  proposition ;  they  are  furnished 
by  every  crisis ;  it  suffices  to  recall  what  took  place  in  1857  in  Europe, 
and  particularly  in  England.  We  can  also  remember  the  complaints  in 
our  country,  when,  during  two  years  in  succession,  1863  and  1864,  the 
Bank  reserve  did  not  exceed  200  millions,  and  it  was  necessary  to  raise 
the  rate  of  discount  to  7  and  8  per  cent.  It  was  plainly  seen  then  that 
the  metallic  currency  was  not  an  article  of  merchandise  like  anything 
else,  and  that  it  demanded  more  circumspect  treatment  than  ordinary 
products.  Now,  it  is  the  same  point  of  departure  which  causes  the  errors 
respecting  the  influence  exerted  by  an  abundance  of  gold  mines. 


1869]  TBS   GOLD   QtnEBTIOK.  9 

It  18  imagined  that  gold,  being  an  article  of  merchandise  like  any  other, 
cannot  become  suddenly  abundant,  much  more  abundant  than  it  was, 
vithoat  undergoing  a  certain  depreciation.    "  The  abundant  supply  of 
precious  metals,"  says  Hume  in  his  essay  upon  money,  '*  is  a  cause  of  loss 
to  ft  nation  in  its  foreign  commerce,  because  it  raises  the  price  of  labor 
and  merchandise,  and  obliges  every  one  to  pay  out  a  greater  number  of 
the  little  white  and  3  ellow  pieces."    Bastial,  even,  who  had  seen  the  com- 
mencement of  the  production  of  the  California  mines,  said,  in  speaking  of 
the  countries  producing  gold  and  silver,  *^  The  more  you  send  us  of  pre- 
cfooa  metals  the  better  it  is  for  us,  for  this  permits  us  to  have  more  gold 
and  silver  for  making  spoons,  forks  and  knives ;  but  it  is  so  much  the 
worse  for  you,  for  we  do  not  send  you  more  cloth  and  iron  for  the  in- 
creased amount  than  we  send  you  to-day  for  the  lesser  quantity." 

Id  this  estimate  there  were  two  errors:  first,  in  supposing  that  the 
superfluity  of  gold  and  silver  was  destined  principally,  if  not  exclusively 9 
for  the  manufacture  of  spoons  and  knives  and,  we  will  add,  even  jewelry  ; 
secondly,  in  admitting  that  the  depreciation  of  the  precious  metals  is  in 
proportion  to  the  increase  in  quantity.  We  might  cite  other  authors 
who  have  gone  further  and  who  have  even  considered  the  working  of  the 
California  and  Australia  mines  in  the  light  of  a  misfortune  and  a  loss,  for 
the  reason  that  it  has  diverted  from  agriculture  and'  industrial  pursuits 
much  sinew  and  capital  which  have  been  devoted  to  unprofitable  worki 
that  of  increasing  the  medium  of  exchange  to  an  extent  that  will  render  it 
more  inconyenient,  because  it  will  require  more  of  it  for  the  same  transac" 
tions.  These  opinions  appear  really  very  extravagant  to-day,  after  the 
experience  we  have  had  since  1848 ;  but  it  is  not  easy  to  explain  how  so 
many  hundreds  of  millions  turned  out  every  year  by  the  mines  have  en- 
tered into  the  circulation  without  having  more  effect  upon  it.  It  is  a 
point  which  requires  elucidation.  We  are  twenty  years  removed  from 
the  commencement  of  the  working  of  the  Gtilifornia  mines  and  seventeen 
from  that  of  the  Australian  mines.  The  gold  furnished  by  these  minesi 
exclusive  of  other  sources  of  production,  may  be  estimated  at  16  or  16 
thousand  millions  [about  $3,000,000,000].  We  have  then  under  our 
ejes  a  6eld  of  observation  sufficiently  large,  and  if  wts  cannot  judge  pos- 
itively, by  what  has  occurred  during  these  twenty  years,  of  what  will  take 
place  in  future,  on  account  of  the  intricacy  of  the  monetary  phenomena 
And  their  disturbance  by  circumstances,  we  can  at  least  make  some  useful 
dfductions.  According  to  some  authors,  the  value  attached  to  what  are 
called  the  precious  metals,  arising  from  their  use  for  manufacturing 
purposes,  ornaments  for  example.  It  is  admitted  that  they  also  derive  a 
value  from  their  use  as  money,  but  this  is  considered  subordinate  to  the 
other,  and  when  we  compare  particularly  the  intrinsic  value  of  the  pre- 


10  TBS  OQLD  QVIBTX^V.  [•/afllMfy, 

cions  meUls  with  other  conventional  sobBtaDoes  whioh  are  proposed  as 
a  circulating  medium,  paper  for  instance,  we  are  yery  quick  to  note  the 
advantage  which  the  metals  possess,  of  being  adapted  to  manu&cturing 
purposes,  and  it  seems  to  be  thought  that  from  this  quality  only  they 
have  been  adopted  as  a  standard  of  value.  Nothing  is  more  false. 
The  industrial  pursuits  for  their  various  uses  do  not  employ  a  tenth  of 
the  precious  metals  which  are  produced  according  to  the  estimates 
made  by  all  competent  judges  who  have  examined  the  subject.  Con- 
sequently, out  of  the  40  and  odd  thousand  millions  which  have  been 
taken  from  the  mines  during  three  centuries  added  to  the  18  or  20 
thousand  millions  which  have  been  extracted  since  1848,  if  we  subtract 
one-quarter  for  loss  and  only  consider  its  uses  for  industrial  purposes, 
there  will  remain  about  40  thousand  millions,  with  no  foundation  for  its 
value.  It  has  a  foundation  for  its  value,  however,  which  is  its  use  as 
money,  by  the  side  of  which  its  use  for  industrial  purposes  is  nothing, 
and  it  is  precisely  because  it  has  this  foundation  which  is  of  the  most 
substantial  kind,  that  people  have  entertained  the  idea  of  using  gold 
and  silver  for  ornaments ;  otherwise,  no  one  would  have  thought  of  it 
sooner  than  they  would  have  thought  of  making  jewelry  and  ornaments 
of  iron  or  copper.  The  truth  is,  then,  just  the  contrary  of  what  has 
been  held :  it  is  its  value  as  a  monetary  standard  which  has  given  to  it 
its  value  as  a  material  for  ornaments.  It  has  sometimes  been  said  that 
it  was  in  consequence  of  a  conventional  arrangement  that  these  metals 
became  monetary  standards,  that  any  other  might  have  been  adopted. 
This  is  a  great  mistake.  The  metals  which  are  called  precious  have  not 
been  conventionally  adopted ;  they  have  forced  themselves  into  use  by 
reason  of  their  peculiar  qualities  which  no  other  material  possesses. 
Wheaten  bread  and  wine  are  certainly  very  useful  in  the  world,  yet  they 
have  not  a  use  as  general  as  specie.  We  find  people  who  do  not  eat 
bread  nor  drink  wine,  but  have  substitutes  in  rice,  potatoes,  beer  and 
other  fomented  drinks.  Even  wool,  which  serves  to  clothe  us,  is  not  used 
everywhere ;  it  is  replaced  by  cotton  or  other  tissues.  It  is  not  the  same 
with  a  metallic  currency.  When  a  people  does  not  possess  it,  and  their 
commercial  relations  are  conducted  by  means  of  barter,  that  ,is  to  say, 
an  exchange  in  kind,  it  is  in  a  primitive  and  barbarous  slate,  and 
only  commences  to  emerge  from  that  condition  when  it  adopts  the  pre- 
cious metals  as  a  medium  of  exchange.  It  b  also  seen  what  results  to 
civilized  pbople  wh?,  after  having  abused  their  resources,  are  compelled  to 
dispense  with  metallic  currency  and  to  perform  their  exchanges  by 
means  of  that  conventional  medium  styled  paper  money.  They  are 
checked  in  their  industrial  and  commercial  developments  and  grow,  poorer 
year  after  year. 


1869]  XHX  GOLD  QuxsnoK.  11 

Now  to  what  extent  have  they  done  this?  Have  the  prodaots  which 
they  have  furnished  heen  only  proportional  to  the  activity  in  husineas 
which  they  have  produced  f  Have  they  hcen  greater  I  Tbia  ia  the  sew 
question  which  we  purpose  to  examine,  a  queation  of  &ct  rather  than  of 
theory  upon  which  authors  are  divided,  and  one  which  it  ia  very  difficult 
to  settle  authoritatively. 

n. 

The  greatest  monetary  revolution  which  has  taken  place  in  the  world* 
dattt,  we  have  said,  from  the  discovery  of  America.  At  that  epochi 
1493,  in  the  opinion  of  most  writers  upon  the  suhject,  there  was  in 
Eorope  and  in  the  civilized  countries  with  which  Europe  had  commercial 
rektioDs  ahout  one  thousand  millions  of  coin — 300  millions  in  gold  and 
700  millions  in  silver.  The  rest  of  the  production  anterior  to  that  time 
had  been  buried  during  the  barbarous  period  or  destroyed.  They  did 
not  at  first  find  in  America  that  richness  in  precious  metals  which  was 
wbaequently  discovered.  Nevertheless,  from  the  first,  much  gold  was 
etported  which  went  to  enrich  Spain.  One  will  recall  the  famous  gal* 
leoDs  which  were  the  admiration  of  the  world;  a  little  later,  from  1520 
to  1530,  when  Ferdinand  Cortez  took  possession  of  Mexico,  and  Pizarro 
of  Pern,  the  yield  increased  perceptibly ;  but  it  was  not  at  its  height  nn- 
til  the  discovery  by  chance— as  almost  always  happena— of  the  fisimona 
mines  of  Potosi.  Then  the  working  of  the  mines  commenced  upon  a  larger 
scale,  and  Europe  was  soon  inundated  with  the  metals  which  were  ob- 
tuned.  M.  Jacob  estimates  that  in  the  course  of  the  16th  century  the 
Hipply  of  precious  metals  was  about  8,615  millions.  There  is  a  difference 
of  opinion  as  to  what  was  the  ratio  of  the  specie  in  existence  at  the  time 
of  the  discovery  of  America,  to  the  amount  in  existence  at  the  time  of 
the  opening  of  the  California  and  Australian  mines.  Some  calculate  as 
1  to  11,  others  as  1  to  7  or  8,  and  still  others  as  1  to  6.  This  last  estim- 
ate is  that  of  M.  Newmarch,  in  his  History  of  Prices;  it  is  also  that  of 
Leber  in  his  History  of  Private  Wealth  in  ths  Middle  Ages  ;  it  appears 
to  be  the  most  accredited.  In  1493  then  it  required  but  one*sixth  of  the 
amount  of  specie  which  was  required  in  1848  to  make  the  same  pur- 
ohases.  This  applies,  it  will  be  understood,  to  articlea  for  which  the  value 
has  maintained  a  certain  constancy  for  centuries,  and  such  articles  are 
more  rare  than  one  may  imagine.  It  cannot  be  gainaaid,  indeed,  that  in 
ipite  of  the  depreciation  of  specie,  there  are  to-day— owing  to  the  pro- 
gress of  the  industrial  pursuits— many  products  which  are  cheaper  Uian 
in  tb«  16th  century — for  example,  all  which  relate  to  clothing  and  to  the 
comforts  of  life.  One  is  clothed  at  less  expense  than  at  the  close  of  the 
I5th  century,  one  travels  at  less  expense  and  much  easier,  and  when  it  is 


12  THK  GOLD  QUEsnoF.  [t/anttory, 

said,  relying  upon  this  depreciation,  that  it  would  reqnire  an  inoome  five 
or  six  times  greater  for  a  nobleman  to  live  now  as  one  Irved  then,  it  is  a 
great  mistake ;  he  could  live  much  better^  he  could  procure  a  vanity  of 
enjoyments  which  did  not  exist  then,  or  which  were  accessible  only  to  a 
few. 

In  adopting  the  price  of  wheat  as  a  standard  of  comparison,  it  is 
generallv  admitted  that  the  value  of  specie  does  not  commence  to  dim- 
inish before  the  second  quarter  of  the  sixteenth  century ;  calling  it  4  in 
the  second  quarter,  it  fell  to  3  in  the  third  quarter,  and  finally  in  the 
last  year  of  the  century,  and  even  up  to  1620,  it  continued  to  fall,  and 
reached  2,  where  it  remained  fixed  up  to  the  revolution  in  1789,  Some 
persons  deny  that  any  serious  change  was  produced  before  1560.  Accord- 
ing to  them,  the  depreciation  did  not  commence  till  that  epoch  and 
continued  to  1620  or  1630 ;  but  whatever  may  be  the  difference  of 
opinion  as  to  the  amount  of  depreciation  and  the  time  when  it  com- 
menced, every  one  agrees  that  the  great  monetary  revolution  was  accom- 
plished near  the  close  of  the  first  third  of  the  I7th  century,  about  one 
hundred  and  forty  yeais  aAer  the  discovery  of  America,  and  that  there 
was  no  serious  change  besides,  up  to  a  time  very  near  the  present. 

Now,  we  are  anxious  lo  determine  what  has  been  the  production  of 
precious  metals  during  the  epoch  in  which  the  revolution  was  accom- 
plished, and  what  it  has  been  since  that  time.  M.  Jacob,  we  have  said, 
estimates  at  3,615  millions  the  entire  production  of  the  sixteenth  century  ; 
lie  extends  to  1,000  millions  that  of  the  seventeenth  century,  and  sup- 
posing that  a  third  of  this  belongs  to  the  first  thirty  years  of  the  century, 
we  have  a  production  of  6,000  millions  to  be  added  to  the  1,000  millions 
which  is  thought  to  have  existed  before  the  time  when  the  great  change 
in  the  value  of  precious  metals  commenced.  The  increase  in  quantity 
would  have  been  600  per  cent,  and  the  depreciation  only  200  per  cent. 
It  results,  therefore,  from  this,  that  the  depreciation  of  specie  is  not 
necessarily  proportionate  to  the  increase ;  but  what  has  a  greater  signifi- 
cance still  is  the  production  which  succeeds  the  monetary  revolution. 

The  seventeenth  century,  according  to  M.  Jacob,  furnished  10,000 
millions,  which  would  be  7,000  millions  subsequent  to  1630.  The 
eighteenth  century  produced,  according  to  the  most  probable  valuation, 
20,000,  in  all  27,000  millions,  which  must  be  added  to  7,000  millions 
supposed  to  have  been  in  existence  about  1630,  that  is  to  say,  an  increase 
nearly  quadruple,  and  yet  in  spite  of  this  increase  no  one  has  observed 
ip  to  the  middle  of  the  eighteenth  century  any  further  important  depre- 
ciation of  the  precious  metals.  It  is  supposed  thai  a  new  change  took 
place  about  1789,  and  that  the  value  of  silver,  which  we  found  reduced 
from  2  to  1  in  1630,  went  up  again  to  2,  that  is  to  say,  the  value  which 


1869]  THB   aOU)  QUB8TI0K.  13 

it  had  in  1848.  Still  there  are  other  authors  who  den j  this  and  who 
think  that  the  last  change  oecurred  in  the  first  half  of  the  nineteenth 
centorj.  However,  the  difference  of  opinion  is  of  no  importance,  because 
rapposing  the  depreciation  the  most  considerable,  we  still  find  that  from 
1630  to  1780,  it  baa  on\j  been  100  per  cent,  while  the  increase  in 
quantity  of  the  precious  metals  was  400  per  cent.  The  same  phenomenon 
coDtinned  during  the  first  half  of  the  nineteenth  century.  It  is  asserted 
that  the  production  of  that  century,  up  to  the  discovery  of  the  California 
mines,  was  about  12,000  millions,  of  which  8,000  at  least  were  imported 
into  Europe,  and  these  8,000  millions  have  been  added  to  a  stock  of 
metals  which,  in  1800,  amounted  to  about  26  or  27,000  millions.  This 
is  ao  increase  of  near  one-fourth,  and  the  increase  has  produced  scarcely 
any  effect.  If  the  price  of  things  has  advanced  since  that,  it  is  from 
causes  foreign  to  the  value  of  the  precious  metals.  This  is  recognized  by 
every  one ;  there  is  only  a  difference  of  opinion  as  to  what  has  occurred 
since. 

We  have  said  that  some  years  afler  the  openiug  of  the  California  and 
Aostralian  mines,  the  yield  of  precious  metals  had  increased  from  450  to 
11  or  1200  millions  per  year ;  but  it  is  necessary  to  deduct  what  waa 
produced  by  countries  with  which  the  civilized  world  had  little  inter- 
coarse,  such  as  Asia  and  Africa,  which  kept  nearly  all  they  furnished. 
There  remains  the  production  of  the  civilized  world  which  is  all  that  we 
need  take  into  account.  M.  Michel  Chevalier,  whose  remarkable  labora 
in  this  field  have  won  for  him  great  distinction,  estimates  it  in  1865  at 
UOOO  millions.  Let  us  add  to  this  3000  millions  for  the  three  years 
which  have  elapsed  since,  and  we  have  17000  millions  for  which  it  is 
necessary  to  deduct  still  what  has  been  exported  in  gold  and  silver  to 
those  partially  civilized  countriea  which  return  but  little  of  what  is  sent 
them  of  precious  metals,  such  as  India  and  Japan.  M.  Michel  set  this 
amount  in  1865  at  3311  millions.  It  is  necessary  to  deduct,  in  the 
second  place,  what  has  been  lost  by  wear  and  accidents,  such  as  ship- 
wrecks and  burying:,  which  amounts  to  a  considerable  sum  upon  the  whole 
stock  of  metals.  The  estimates  for  this  can  only  be  hypothetical  and, 
therefore,  vary  a  great  deal. 

According  to  some,  the  loss  is  about  i  per  cent  per  annum  for  silver, 
and  about ^  per  cent  for  gold;  others  set  it  higher,  and  make  it  amount 
to  1  per  cent  altogether.  We  shall  not  inquire  which  is  the  most  proba- 
ble. Precision  in  this  point  is  of  secondary  importance  in  reference  to 
the  question  which  we  are  now  discussing.  It  suffices  to  have  an  ap- 
proximate figure,  and  if  we  set  the  loss  for  wear  and  accidents  of  every 
kind  at  i  per  cent  for  the  whole,  it  amounts  to  200  millions  per  annum 
and  4000  nadlliona  for  twenty  years,  which  is  not  far  from  the  truth.    We 


14  THX  QOU>  QDBBTIOir*  [/aiNMIfir, 

shall  have  then  about  7500  milHonB  to  deduct  from  the  17000  millions 
furnished  directly  from  the  working  of  the  mines.  There  remains  0500 
or  10000  millions  for  the  increase  of  precious  metals  since  1 848.  M.  New- 
march,  whose  calculations  we  readily  accept,  has  found  that  in  1848,  after 
deducting  for  all  loss,  there  were  probably  in  the  civilized  countries,  Eu- 
rope and  America,  84000  millions  of  precious  metals  (in  round  numbers), 
of  which  20,000  millions  were  in  silver  and  14,000  millions  in  gold.  The 
0  or  10000  millions  just  alluded  to,  or  near  that  amount,  constitute,  upon 
the  whole  metallic  stock,  an  increase  of  25  to  80  per  cent  in  20  yearSf 
which  is  1^  to  H  per  cent  per  annum. 

Is  this  an  increase  sufficient  to  have  brought  about  a  depreciation  o' 
the  precious  metals  ?  Some  persons  have  thought  so,  and  have  ayen 
calculated  the  amount  of  that  depreciation  at  different  epochs  in  the 
period  of  twenty  years,  which  separates  us  from  the  discovery  of  the 
California  mines.  Some  have  set  it  at  9,  others  at  15,  and  still  others  at 
20  per  cent  In  order  to  make  the  calculation,  they  have  obtained  the 
price  of  certain  commodities  at  the  different  epochs  they  wished  to  com- 
pare,  and  according  to  the  variations  in  price  which  they  have  observedi 
they  have  estimated  the  depreciation.  We  understand  this  to  be  the 
proper  course  to  take  to  estimate  the  variation  in  the  price  of  things  at 
different  epochs ;  but  to  proceed  with  any  security  and  to  be  at  all  certain 
that  we  do  not  deceive  ourselves  in  the  cause  to  which  the  Tariations  are 
attributable,  it  is  necessary  to  go  over  a  long  space  of  time  in  order 
to  avoid  accidental  disturbances ;  if  we  have  before  us  only  a  very  short 
period,  these  accidental  influences  are  in  operation  and  aid  in  bringing 
about  the  results  upon  which  our  calculation  is  based.  Here  is  unfor- 
tunately the  error  of  the  calculations '  to  which  we  have  alluded ;  they 
have  been  calculated  for  a  period  of  ten  or  fifteen  years.  Now,  for  this 
period,  what  a  variety  of  circumstances  besides  that  of  the  production  of 
specie  may  have  modified  the  price  I  We  have  had,  first,  the  extraor- 
dinary impulse  given  to  business  after  the  coup  d^etat  of  1851,  then  the 
influence  of  the  Crimean  war  in  1854  and  1855.  If  we  adopt  wheat  as 
the  standard  of  comparison,  it  is  necessary  to  take  into  account  three 
consecutive  years  of  scarcitj,  from  1854  to  1856.  In  1857  occurred  a 
formidable  crisis,  the  result  of  excessive  speculation.  If  we  extend  the 
comparison  to  our  time,  1868,  we  find  still  in  1859  a  new  war,  that  of 
Italy,  with  all  its  consequences  upon  the  political  future  of  Europe.  In 
1863  and  1864  there  were  new  financial  embarrassments,  having  nearly 
the  same  causes  as  in  1857.  In  1866  came  on  the  German  war  which 
disturbed  the  equilibrium  of  States,  and,  finally,  since  that  time,  for 
reasons  well  known  to  every  one,  Europe  finds  itself  plunged  into  appre- 
hensions   of    war,  and    lives    in    the    greatest  disquietude.    Hence  a 


1669J  TAB  OOXD  QTTXSTXOir.  15 

prolonged  stagnation  in  buainesBi  whicli  is  not  without  its  influence  upon 
the  price  of  thiogSy  and  yet  is  not  a  normal  condition.  What  conclu- 
uons  can  be  derived  from  a  period  so  full  of  incidents,  and  so  darkened 
with  storms  that  there  is  hardlj  a  vista  of  clear  sky  during  the  time  '^ 
Certsinly  no  definite  conclusions  as  to  the  value  of  the  precious  metals. 

It  is  evident  that  the  price  of  certain  things  has  not  materially  advanced 
since  1848.     The  price  of  meat,  vegetables,  wine  and  provisions  general. 
]y  is  higher  to-day  than  at  that  time,  so  also  are  luxuries  and  certain 
niateriak  of  the  first  importance  in  manufactures.    The  price  of  handwork 
and  salaries  have  proportionately  advanced.    It  will  be  recollected,  on 
the  other  hand,  that  all  products  have  not  undergone  this  advance. 
There  are  some  which  have  to-day  the  same  price  as  in  1848.    If  we 
tske  vheat,  for  example,  and  select,  from  the  period  of  twenty  years 
which  have  just  elapsed,  the  years  of  scarcity,  we  shall  find  the  mean 
price  to  be  about  18  or  20  francs  a  hectolitre.    It  fell  even  to  15  and  1% 
francs  in  1864  and  1865,  when  agriculture  made  such  bitter  complaints 
and  asked  for  an  inquiry  into  its  grievances.    The  same  stagnation  ap- 
plied to  wool  and  other  commodities.    Sugar  is  cheaper  than  in  1848 
and  as  to  the  larger  part  of  colonial  commodities  such  as  coffee,  choco* 
late,  tea,  although  the  consumption  has  increased  very  considerably,  the 
price  has  advanced  but  little.    In  fact,  the  price  of  manufactured  articles 
IB  general  has  rather  diminished  than  increased.    Iron  is  materially  be- 
low its  value  in  years  preceding  1848,  and  one  can  be  clothed  at  less  ex. 
pense  now  than  twenty  years  ago.    What  is  the  inference  from  this  t 
That  the  high  price  of  certun  things  depends  upon  some  other  cause  than 
the  depreciation  of  specie.    It  depends  upon  the  development  of  public 
wealth,  which  has  changed  every  one's  condition  and  increased  the  gene- 
ral eonsumpUon.    Where  the  production  has  kept  pace  with  the  con- 
sumption prices  have  varied  but  little ;  they  have  not  advanced  except 
where  the  production  has  been  much  in  arrears.    They  have  varied  but 
little  for  wheat,  because,  owing  to  the  progress  of  agriculture,  nearly 
enoQgh  has  always  been  raised  to  meet  all  demands,  and  besides,  the 
oonsumpiion  of  this  article  of  provisions  is  not  unlimited.    One  does  not 
eat  more  bread  because  he  is  richer.    Wool,  also,  on  account  of  its  im- 
portation from  abroad,  and  particularly  from  Australia,  has  remained 
very  nearly  at  the  level  of  demand.    Hence  the  stagnation  in  price.     As 
to  sugar,  there  has  been  much  progress  in  home  manufactures,  which  has 
naturally  brought  about  a  diminution  in  the  net  cost.     It  is  the  same 
with  all  manufactured  articles;  a  much  greater  quantity  is  consumed 
now  tban  twenty  years  ago,  but  the  results  of  scientific  appliances  are 
such  that  the  increased  consumption  is  provided  for,  and  still  the  articles 
are  sold  cheaper.    Production  never  falls  behind  the  demand ;  it  out- 


16  TBS  oou)  Qtrsfinov.  [January j 

runs  it  even,  which  in  some  cases  brings  on  crisis  and  a  fall  in  prices, 
like  that  of  which  the  iron  manufaotarers  are  complaining  at  this  time. 
As  to  colonial  commodities  the  prices  have  not  advanced  sensibly,  becausei 
owing  tp  the  extent  of  the  markets  which  furnish  us  and  to  the  means  of 
transport,  which  have  become  more  economical  and  more  numerous, 
these  commodities  arrive  in  as  great  quantities  as  we  desire.  The  things 
which  have  advanced  in  price  are  those,  I  repeat,  of  which  the  quantity 
can  not  be  iucreased  at  the  will  of  the  consumers.  There  is  certainly 
more  wiue  produced  to  day  than  there  was  twenty  years  ago,  and  our 
frontiers  are  open  for  the  introduction  of  cattle,  yet  the  consumption  has 
so  iucreased  by  the  development  of  riches  that  the  demand  is  still  greater 
than  the  supply.  Biffereut  from  the  case  of  wheat,  this  latter  article  of 
food  is  a  kind  which  is  consumed  in  greater  or  less  quantities,  according 
to  the  facility  of  obtaining  it ;  and  it  is  not  necessary  to  enter  into  details 
to  show  that  a  very  much  greater  use  is  made  of  it  to-day  than  before 
1848.  It  is  the  same  with  vegetables,  with  wine,  and  also  with  raw 
materials  for  manufactures.  The  progress  in  manufactures  makes  a 
demand  for  raw  material  and  the  price  is  raised  because  it  is  not  so  easy 
to  incresse  the  quantity  as  to  work  it  up.  It  is  the  triumph  of  the  genius 
of  man  to  have  succeeded,  by  means  of  economical  apoliances,  in  realizing 
this  pheuomenon,  in  appearance  paradoxical,  dearness  of  the  raw  material 
and  cheapness  of  the  manufactured  products.  It  is  the  same  cause  which 
has  raised  the  price  of  hand  work ;  labor  has  been  more  employed,  the 
demand  for  it  has  increased,  and  naturally  we  have  had  to  pay  higher 
for  it;  but  the  dearness  of  all  these  articles  has  nothing  to  do  with  the 
depreciation  of  the  precious  metals.  Otherwise  it  would  have  affected  as 
well  those  products  which  have  remained  at  the  level  of  consumption, 
for  certainly,  the  equilibrium  which  has  been  sustained  in  these  would 
have  been  broken  as  far  as  specie  is  concerned,  the  moment  it  became 
more  abundant,  and  it  would  have  taken  more  of  it  to  make  the  same 
purchases,  according  to  the  natural  law  of  supply  and  demand.  This  is 
what  happened  after  the  discovery  of  America.  As  soon  as  the  depreci- 
ation took  place,  it  was  perceived  with  wheat  as  with  all  other  mer- 
chandize, and  yfhosLt  was  even  taken  as  a  standard  to  measure  that 
depreciation. 

Besides,  at  the  time  when  the  authors  of  whom  we  speak  made  their 
calculations  to  prove  the  depreciation,  the  most  of  them  about  1857,  the 
commodities  which  they  took  for  a  standard  had  undergone  an  exceptional 
rise,  due  to  the  operation  of  excessive  speculation  which  had  taken  place 
previously.  We  were  encountering  one  of  the  greatest  commercial  crisis 
which  had  been  known  for  a  long  time.  Prices  experienced  a  sensible 
Jail  later,  and  to-day,  after  ten  years,  they  are  generally  below  what  they 


1869]  VBi  QOifi  QUfsnov.  17 

w«re  ID  185?.    The  EamamiH  gi?es  a  veiy  ezplioit  statement  of  them. 
U  takes  twenty  of  the  most  common  kind  of  merchaDdise,  coffee,  sugar, 
tea,  meat,  indigo,  oil,  I  amber,  tallow,  leather,  iron,  lead,  tin,  cotton,  flax  and 
hemp,  silk,  tobacco,  and  ordinary  cotton  stufis.     Only  four  of  them  were 
on  the  1st  of  January,  1868,  above  the  price  of  the  first  of  January, 
1857;  these  are  butchers  meat  about  7  per  cent;   indigo,  about  27 
per  cent ;  oil,  about   8,  and    tobacco   about  5.     All  the  others  are 
lower— coffee    about    6    per    cent,    sugar    about    40    per  cent,  tea 
about  38  per  cent,  lumber  about  8  per  cent^  tallow  about  80  per  cent, 
leather  about  40  per  cent,  iron  about  80  per  cent,  lead  about  26  per  cent, 
tin  about  84  per  cent,    cotton  about  17  per    cent,  silk    about    26 
per   cent,  wool    about    28    per    cent      With    the    close    relations 
which  exist  to*day  between   the  principal  markets,  we   may  conclude 
that  what  has  taken  place  in  England  has    equally  been  the  case 
in  France.    It  results  from  this  statement,  that  aside  from  the  years  1 863 
and  1864,  when  prices  nearly  reached  the  level  of  1867,  resulting  from 
eaormoua  speculation,  they  remained  generally  below  that  level.    This 
goes  iar  to  show  that  the  exceptional  advance  in  prices  which  the  most 
part  of  these  commodities  underwent  from  1862  to  1867  did  not  proceed 
from  a  depreciation  of  the  precious  metals;  otherwise  it  would  have  con* 
tiDued,  since  the  products  of  the  mines  have  been  more  abundant  than 
ever*    Since  1867  California  and  Australia  alone  have  furnished  at  lei^st 
7000  millions  of  gold.    It  has  only  continued  upon  certain  commodities 
and  in  particular  upon  articles  of  food.    The  reason  of  this  is,  that  in  spite 
of  the  check  given  to  many  kinds  of  business,  people  continued  to  con- 
sume more,  owing  to  increasing  riches  and  the  force  of  habit,  and  the 
piodnetion  did  not  keep  pace  with  the  consumption.    There  would  have 
been  depreciation,  if  we  had  had  less  means  than  in  the  16th  century  for 
employing  the  26  per  cent  increase  in  the  precious  metals,  which  we  have 
shown  to  be  the  increase  since  1848 ;  and  the  contrary  has  been  the  case^ 
Without  speaking  of  other  inventions  which  have  multiplied  commercial 
transactions  by  increasing  production,  we  may  characterise  the  difference 
between  the  present  and  former  condition  by  two  things :  railroads  and  the 
electric  telegraph.    At  the  time  when  these  two  important  inventions 
were  first  applied  in  a  very  limited  way,  there  was  a  stimulant  for  the  de- 
velopment of  business  such  as  we  have  never  before  known  at  any  epoch, 
and  irhat  is  remarkable,  is  the  coincidence  of  these  two  inventions  with 
the  discovery  of  the  gold  mines  of  California  and  Australia.    Without 
theie  mines  we  should  certainly  have  made  the  railroads — they  had  been 
already  commenced — but  they  would  have  been  made  much  more  slowly, 
sod  we  would  not  have  been  able  to  devote  to  them  400  millions  per  an- 
noo,  as  we  have  done  in  France  for  more  than  6fteea  years.    And  then 

2 


\ 


18  VHB  GOLD  QUBtnov.  \J<mu(py^ 

what  a  diflbrenoe  ia  the  results  I  Bnsiiieas  would  not  bave  received  the 
development  which  we  see  if  it  had  not  found  a  solid  basis  in  the  increase 
of  the  precious  metals.  The  gold  mines  came  just  in  time  to  give  to  rail- 
roads and  the  electric  telegraph  their  full  development  in  results.  On  the 
other  hand,  if  gold,  in  the  quantities  which  were  furnished  at  once,  had 
come  alone,  unaccompanied  by  the  greater  &ci]ities  of  communication 
and  transport,  it  would  not  have  been  absorbed  so  easily — it  would  have 
been  depreciated — and  would  not  have  produced  the  effect  upon  business 
which  it  did.  The  gold  of  California  and  Australia  has  served  to  extend 
the  railroads  and  they,  in  turn,  by  the  influenoe  they  have  exerted  upon 
commerce,  have  furnished  channels  for  gold.  It  is  thus  that  improve* 
ments  are  connected  one  with  another,  and  that  humanity  advances 
through  discoveries  towards  an  ideal  civilisation  beyond  our  knowledge. 

Let  us  see  now  by  figures  how  we  can  account  for  the  increased  quan- 
tity of  specie  since  1851.  Every  one  knows  that  business  has  been 
much  more  extended,  commencing  from  that  epoch ;  but  it  is  not  gen- 
erally known  in  what  proportions,  and  this  is  a  very  important  point  to 
be  presented.  In  1851,  at  the  time  when  the  working  of  the  mines  of 
Australia  commenced,  on  the  eve  of  a  considerable  political  change  which 
took  place  in  France,  the  foreign  and  domestic  commerce  of  our  country^ 
exports  and  im|>orts  united,  aside  from  the  movement  of  the  precious 
metals,  was  less  than  200  millions  (1,928  millions).  It  was  more  than 
0,000  millions  in  1867,  which  was  a  bad  year,  and  it  attained  to  7,500 
millions,  including  the  precioua  metals. 

The  amount  of  the  operations  of  the  Bank  of  France  was  raised  from 
l-,-592  millions  in  1851  to  7,872  millions  in  1867,  after  haying  reached 
8,292  millions  in  1866.  These  figures,  are  significant,  and  ftirnish  the 
measure  of  the  development  of  business,  which  has  more  than  tripled 
since  1851.  Supposing  that  we  have  had  a  proportional  share  with  the 
rest  of  the  world  in  the  increase  of  precious  metals  furnished  by  the 
mines — that  our  metallic  stock  in  particular  has  been  increased  25  per 
cent,  40  per  cent  even,  if  you  please,  this  40  per  cent  increase  of  the 
precious  metals  has  not  been  sufficient  to  meet  the  demands  of  the  triple 
or  quadruple  amount  of  business.  The  same  progress  has  taken  place 
in  England ;  the  foreign  commerce  of  less  than  5,000  millions  in  1851 
exceeds  to-day  15,000  millions.  I  know  that  it  is  necessary  to  take 
into  account  the  great  rapidity  with  which  the  precious  metals  circulate 
at  present,  tiie  facilities  which  have  been  furnished  in  this  respect  by 
railroads  and  the  substitution  even  of  gold  for  silver;  that  is  to  say,  a 
metal  having  greater  value  for  one  having  less.  It  is  necessary  to  take 
into  account  also  all  the  means  of  credit  which  have  been  much  expanded 
within  fifteen  years,  the  expansion  keeping  pace  with  that  of 


1869J  IBS  GOLD  QUEBTZOir.  19 

bot  tbere  is  a  wide  margin  between  40  per  cent  more  of  specie  and  3 
or  400  per  eent  more  of  bnsiness ;  and  whatever  allowance  may  be  made 
for  these  circumstances  we  shall  stttl  find  enough  to  absorb  largely  the 
increase  of  precious  metals  furnished  by  the  mines. 

Proof  that  the  precious  metals  haye  not  been  too  abundant — more 
sbondant  than  business  has  required,  is  found  in  the  fact  thut  several 
times  in  this  period  of  twenty  years  there  has  been  an  insufficiency  of 
gold  and  silver.  Never  before  has  such  a  price  been  paid  for  specie.  If 
it  is  otherwise  to-day,  and  if  our  principal  financial  institution  is  over- 
flowing with  specie  for  which  it  has  no  use,  it  is  a  condition  entirely  ex* 
ceptional,  for  which  we  have  pointed  out  the  reason  in  a  former  article* 
snd  does  not  in  the  least  degree  indicate  to  what  extent  our  country 
is  capable  of  employing  the  precious  metals  in  ordinary  times.  If  instead 
of  1,300  millions  cash  balance  which  the  Bank  of  France  has  to^ay,  it 
had  only  two-third  as  much  which  could  not  be  received  into  the  circula- 
tioD,  that  would  suffice  to  bring  about  a  depreciation.  Gold  would  be 
woith  less  at  home  than  elsewhere ;  it  would  leave  the  country  and  we 
should  pay  much  more  dearly  for  everything  we  purchase.  Now  the 
contrary  of  this  is  the  case.  As  raw  material  tends  towards  that  country 
which  can  use  it  to  the  best  advantage,  and  which  consequently  can  pay 
the  most  for  it,  so  the  precious  metals  in  general  go  to  the  country  where 
their  purchasing  power  is  greatest.  Consequently  if  we  see  them  abound 
with  us,  it  is  because  thej  have  not  diminished  in  value.  Let  us  examine 
the  average  prices  of  grain,  and  we  shall  see  that  in  England,  with  the 
exception  of  articles  of  food  and  certain  objects  of  luxury,  which  the  in, 
crease  in  comforts  has  rendered  necessary,  most  articles  of  merchandise 
cipecially  those  which  are  thought  to  have  been  affected  by  the  deprecif- 
ft>n  of  gold,  are  to-day  below  the  market  value  of  1857, 1863  and  1864. 
They  are  affected  by  the  stagnation  in  business  as  formerly  they  were 
a&cted  by  the  opposite  condition  of  things.  The  increase  in  the  price 
of  articles  of  food  and  luxury  is  so  intimately  connected  with  the  increaf*e ' 
of  public  wealth,  that  they  are  everywhere  inseparable,  and  these  articK-A 
become  dearer  as  public  wealth  increases.  Before  1848  they  had  become 
very  dear  in  England  and  Holland,  dearer  than  with  us,  for  the  simple 
reason  that  there  was  more  wealth  there.  Since  1859  France  is  certainly 
the  country  which,  owing  to  various  causes,  has  made  the  most  progress 
in  the  industrial  pursuits  and  in  commerce,  that  in  which  there  has  been 
the  greatest  comparative  increase  in  wealth.  So  it  is  the  country  where 
srticles  of  food  and  luxuries  have  the  greatest  demand.  They  are  today 
at  nearly  the  same  level  as  in  England  and  Holland.    Besides,  if  a  more 

*  8m  the  Bev«0  of  Ms7  ISt  IMS. 


20  TBS  O0U>   QU18TX0V.  [JtMfUUy^ 

decisive  proof  were  needed,  it  would  only  be  necessaiy  to  cite  the  exam-* 
pie  of  the  United  States.  In  that  country  for  a  long  time,  even  before 
the  discover^  of  the  new  mines,  articles  of  food  and  luxuries  were  higher 
than  anywhere  in  Europe.  Why  I  Because  the  development  oi  riches 
was  greater,  there  were  more  consumers  for  the  same  artiolep,  and  the 
production  was  Isrgely  deficient. 

If  it  is  meant  that  the  precious  metals  have  no  longer,  with  respect  to 
merchandise,  the  same  power  of  acquisition  as  formerly,  that  it  is  neces* 
sary  to  give  more  for  things,  and  that  this  is  the  effect  of  the  influence  of 
the  gold  mines  upon  the  development  of  public  wealth,  we  have  no  diffi- 
culty in  assenting  to  it ;  but  there  is  a  great  difference  between  this  and 
a  depreciation  of  specie.  If  articles  of  food  are  dearer  it  is  because  there 
is  more  wealth  to  pay  for  them.  The  level  of  riches  has  risen  nearly  the 
same  for  every  class ;  for  some  because  they  have  increasing  revenues ; 
for  others  because  they  are  producers  and  sellersof  all  which  has  advanced 
in  price.  The  wages  of  workmen  even  have  not  remained  long  below 
what  they  should  be  as  participants  in  this  advance,  and  to-day,  generally 
in  spite  of  the  dearness  of  commodities  necessary  for  life,  the  condition  of 
the  working  class  is  better  than  it  was  twenty  years  ago.  It  is  especially 
better  in  the  conntry,  where  the  spirit  of  economy  rules  more  than  in  the 
cities.  There  is  no  serious  difficnlty  except  for  those  who  have  fixed  sal- 
aries and  settled  revenues.  Still,  as  regards  the  fixed  salaries  they  can 
be  raised  up  to  the  level  of  public  riches,  and  they  are  raised  in  fact  con- 
stantly. As  to  settled  revenues,  which  are  after  all  an  exception,  they  are 
subject  to  the  law  of  humanity,  which  wills  that  nothing  shall  be  immut- 
able. If  those  who  possess  them  do  not  find  them  sufficient  they  must 
resort  to  labor  for  what  is  wanting. 

Now  from  the  fact  that  the  precious  metals  have  not  yet  undergone  a 
serious  depreciation,  which  can  be  plaiuly  shown,  does  it  follow  that  it  viill 
always  be  so  in  future  ?  The  gold  deposits  are  far  from  being  exhauste  I. 
In  California  they  extend,  it  is  said,  over  a  surface  1,250  kilometres*  in 
length,  by  115  in  breadth,  along  the  chain  of  mountains  which  border  the 
Pacific.  In  Australia,  which  is  a  country  greater  than  Europe,  they  ex- 
tend over  nearly  the  whole  surface.  Russia  is  constantly  furnishing  new 
mines  in  the  mountains  which  separate  it  from  Asia,  in  the  Ural,  the  Altai, 
and  even  on  the  platiux  inhabited  by  the  Kirghis.  As  to  the  silver  mines 
here  is  what  was  said  of  them  forty  years  ago  by  M.  de  Humboldt:  "The 
abundance  of  silver  is  such  in  the  chain  of  the  Andes,  that  in  reflecting 
upon  the  number  of  deposits  which  have  not  been  touched,  or  which  have 
been  only  superficially  worked,  one  would  be  tempted  to  believe  that  the 


*  A  kilometr«)  is  little  more  than  8-5  of  a  mile. 


1659]  TBM  GOLD  QITBSTIOir.  21 

Ksropeana  have  but  just  conunenced  upon  an  inexhaustible  store  of  wealth 
nd  ss  the  New  World  poBsesses."    Without  seeking  to  make  an  esti- 
mate which  would  be  impossible,  it  may  be  said,  without  fear  of  exager- 
atioD,  that  there  has  not  been  taken  from  the  mines  already  discovered — 
those  reoenUy    discovered    especially — a    tenth    of   the  wealth  they 
bold.    And  now   that  their    working    has    become   more   regular — 
tbst  it  is  done  with  capita),  with   machines,  and  in  a  scientific  man- 
Dsr,  we  may  expect  for  a  long  time  an  excessive  yield ;  perhaps  we 
shall  succeed  In  doubling  the  present  metallic  stock.    Will  the  effect  be 
always  the  same ;  shall  we  be  able  still  to  absorb  the  additional  supply  of 
precious  metals !    This  is  a  question  which  pertains  to  the  future,  and  one 
we  are  not  able  to  determine.    All  we  can  say  is,  that  this  prodigious 
increase — if  it  takes  place — will  be  comparatively  slow.    Supposing  that 
the  mines  which  are  worked  to-day  continue  to  furnish  1,000  millions  per 
year,  and  that  three-quarters  of  it  goes  to  the  civilized  world— deduction 
being  made  for  loss  and  exportation,  and  this  calculation  is  evidently  very 
libera] — ^it  will  take  more  than  sixty  years  for  the  present  metallic  stock 
to  be  doubled,  and  eighty  years  for  it  to  reach  100,000  millions.    At  the 
end  of  that  time,  according  to  what  took  place  following  the  discovery  of 
America,  the  depieciation  of  precious  metals  would  be  50  per  cent ;  but 
in  the  mean  time  what  are  the  elements  tending  to  diminish  that  result  • 
First,  the  progress  of  the  industrial  pursuits  is  much  more  rapid  to-day  than 
formerly.    Thej  progress,  if  I  may  be  allowed  the  expression,  by  steam  ? 
and  as  the  wants  of  man  may  extend  indefinitely,  there  is  an  immense  field 
in  which  to  employ  the  precious  metals. 

The  English  Ecmwmui^  in  presenting  a  tabular  statement  of  the  increase 
of  business  in  England,  during  twenty-two  years,  from  1843  to  1865,  fixed 
the  consumption  per  head  in  1865  at  41  1-10  lbs.  sugar,  8  3-10  lbs.  tea, 
9  6-10  lbs.  rice,  against  16  5-10  lbs.  sugar,  1  5-10  lbs.  tea,  and  1  lb.  rice 
in  1843,  that  is  to  say,  the  consumption  had  almost  tripled.  The  incresse 
of  foreign  commerce  per  head,  in  /ike  manner  was  represented  by  108 
against  38 ;  and  as  it  i^  as  necessary  to  take  into  account  the  increase  of 
population,  which,  according  to  the  average  in  England,  was  about  one' 
third  for  the  same  space  of  time,  it  resulted  that  the  positive  progress  in 
twenty-two  years  was  represented  by  an  increase  of  products  of  400  per. 
cent  Let  ns  apply  this  calculation  to  the  future  with  a  great  deduction 
Suppose  that  during  the  sixty  years  which  will  have  transpired  before  we 
have  doubled  our  metallic  stock,  the  advance  is  only  what  it  has  been  in 
England  in  twenty-two  years  ;  if  we  add  to  this  the  amount  necessary  for 
the  increase  of  population,  which  we  will  estimate  at  50  per  cent — 
although  the  average  period  for  doubling  the  population  is,  for  Europe 
and  America,  at  least  80  years — we  have  an  amount  of  business  450  per 


22  THS  GOLD  QusBTiov.  [Janwoy^ 

cent  greater  tban  it  is  at  present,  and  we  shall  have,  to  meet  this,  doable 
the  amount  of  specie.  The  industrial  pursuits,  and  the  arts  also,  by  reason 
of  the  increase  of  wealth,  will  employ  more ;  they  can  take  200  millioDSf 
for  example,  instead  of  1 00  millions,  which  they  employ  to-day. 

These  figures  show  that  we  shall  be  under  the  necessity  of  resorting 
more  than  ever  to  means  of  credit ;    yet,  in  admitting  that  we  may  by 
this  means  be  able  to  make  up  in  a  measure  for  the  insufficiency  of 
specie,  we  do  not  go  so  far  as  to  suppose,  like  certain  enthusiasts,  that 
we  can  some  day  do  without  it.    We  think,  on  the  contrary,  that  more 
of  it  will  be  needed  in  proportion  to  the  increase  of  business.    It  is  like  a 
pyramid  which  may  be  raised  in  height  or  proportion  to  the  breadth  of 
base.    We  may  grieve  at  present  to  see  1,800  millions  of  specie  inactive 
in  the  vaults  of  the  Bank  of  France,  but  we  may  felicitate  ourselves  upon 
it  in  the  future ;   when  the  political  distrust  shall  have  ceased  and  the 
spirit  of  enterprise  shall  have  been  renewed,  we  shall  find  in  this  the 
means  of  greater  activity.    Finally,  in  considering  the  use  to  which  these 
precious   metals  may  be  put  in  future,  we  must  not  forget  besides,  that 
there  are  to-day  in  America  and  Europe  great  States  by  our  side,  which 
have  about   10,000  millions  of  paper  money,  and  that  they  will  not 
always  remain  in  that  condition.    They  will  suppress  their  paper  money 
and  recall  a  metallic  currency.    We  find  still  another  channel  for  their 
use,  not  less  important,  in  the  relations  becoming  more  and  more  active, 
which  we  are  forcing  with  the  East.    Those  countries  are  very  eager  for 
precious  metals ;  they  are  far  from  having  all  that  they  are  able  to  use — 
all  that  they  will  be  able  to  use  one  day — when  they  become  richer. 
Consequently,  if   there  is  no  assignable  limit  to  the  production  of   the 
precious  metals,  there  is  also  none  to  their  consumption,  and  we  may 
hope  that  the  two  forces  brought  in  contact  will  succeed  in  neutralizing 
each  other — that  specie  will  maintain  nearly  its  present  value,  and  that 
there  will  result  from  it  only  a  very  great  stimulus  to  the  increase  of 
public  wealth. 

If,  however,  depreciation  happens  in  spite  of  all,  it  will  be  no  cause  for 
regret,  and  we  ought  to  refrain  from  thinking  that  it  can  cause  serious 
trouble  to  our  well-being.  In  the  first  place,  it  would  be  slow  and 
gradual,  and  we  should  have  time  to  prepare  for  it  and  to  arrange  our 
business  accordingly.  This  is  what  happened  in  the  16th  century. 
When  the  monetary  revolution  was  accomplished  every  one  conformed 
to  the  new  order  of  things,  and  society  was  richer  than  ever.  Another 
consequence  jet  of  depreciation  and  a  fortunate  one,  is  the  importance 
which  labor  assumes  in  respect  to  acquired  wealth.  The  one  gains  in 
value,  the  other  loses,  and,  by  this  means,  equality  is  produced  among 
the  different  classes  of  society.    One  of  our  distinguished  contributors, 


IMt]  OBUAPBAXS  AKD  OHIO  BAILBOAD.  38 

M.  d6  Layerleye,  has  said  in  ibis  Bevue  (*)  that  in  the  16tli  oanlary  the 
abandanoe  of  the  precious  metalt  had  oontribnted  to  the  elevation  of  the 
eommoD  pe<^Iey  and  that,  in  the  19th  century,  the  abnndance  of  gold 
would  contribnte  to  the  emancipation  of  the  people ;  nothiog  is  more 
correct,  and  we  prefer  this  kind  of  emancipation  to  that  which  the 
laborers  dream  of  in  their  social  Congress.  It  has  the  merit  of  being 
conformable  to  the  laws  of  political  eoonomji  and  of  tending  to  no 
violent  disorder.  Yiotob  Bovhst. 


CHE81PBAKB  AND  OHIO  RAILROAD. 
Ose  of  the  chief  projects  of  the  State  of  Yirginia  has.  for  many  yean 

■ 

been  the  construction  of  a  railroad  which  should  connect  the  waters  of 
Chesapeake  Bay  witb  those  of  the  Ohio  River,  the  distance  between  Rich- 
mond, Va.,  and  the  mouth  of  Big  Sandy  River,  the  terminal  points,  being 
upwards  of  400  miles. 

The  Yirginia  Central  Railroad,  including  the  Blue  Ridge  Railroad 
constructed  by  the  State,  covers  a  little  more  than  one-half  of  this  line, 
and  together  have  cost  nearly  16,000,000.  The  Covington  and  Ohio 
Bulroad,  the  construcUon  of  which  was  undertaken  by  the  State  of  Yir- 
ginia alone,  has  to  date  cost  about  13,250,000.  Since  the  erection  of  the 
State  of  West  Yirginia  nearly  the  whole  of  the  unfinished  line  isincluded 
within  its  limits. 

The  important  ends  to  be  gained  by  the  completion  of  the  Covington 
and  Ohio  Railroad  led  to  identical  action  on  the  part  of  the  two  States 
most  interested,  and  under  acts  passed  by  the  Legislatures  of  each  in 
1867  commissioners  were  appointed  whose  duty  it  was  to  contract  witb 
any  party  which  could  give  satisfactory  assurances  of  being  able  to  com- 
plete the  road  between  Covington,  Ya.,  and  the  confluence  of  the  Big 
§andy  with  the  Ohio  River.  The  acts  specially  referred  to  the  Virginia 
Central  Railroad  Company,  and  provided  that  in  case  that  Company 
should  take  the  contract,  they  should  acquire  all  right?,  interests,  &c.,  in 
the  work  now  held  by  the  States  aforesaid  and  under  the  general  title  of 
the  Chesapeake  and  Ohio  Railroad  Company  become  owners  of  the  line. 

The  Chesapeake  and  Ohio  Railroad,  as  thus  organized,  will  begin  at 
Richmond  and  run  west  through  the  Alleghany  Mountains  and  Wes^t  Vir- 
ginia to  the  Ohio  River,  a  distance  of  405  miles.  A  branch  line  will  also 
be  bsilt  from   a   point  14  miles  west  of  Charleston,  W.  Ya,,  to  Point 


^  Sm  the  Seme  of  April  1,  1367. 


24  OHnAPBAXx  AVD  OHIO  RAUAOAP.  fJoiiiiafy, 

Pleasant,  thereby  making  two  termini  on  the  Ohio  River  and  oonneetions 
with  the  network  of  railroads  already  completed  or  now  being  oonstrocted 
ia  the  Northwest,  West  and  Southwest  At  Riehmond  direct  connection 
is  made  with  West  Point  on  the  deep  waters  of  York  River  and  also  with 
Norfolk.  A  line  is  also  projectad  tocounect  with  Newport  News,  together 
giving  the  road  three  termini  on  the  tide-waters  of  the  Atlantic  ocean. 

On  the  Slst  of  August,  1868,  the  oommisaioners  appointed  under  the 
acts  aforesaid  and  the  Virginia  Central  Railroad  Company  signed  a  con- 
tract giving  to  the  latter  the  authority  necessary  to  construct  the  line  from 
Covington,  together  with  all  the  franchises,  &c.,  conferred  by  said  actsy 
and  from  that  date  the  Company  assumed  the  title  of  the  Chesapeake 
and  Ohio  Railroad  Company. 

The  amount  of  money  required  to  complete  the  roads  is  about  $13,- 
000,000.  Of  this  about  $6,000,000  has  been  secured  by  stock  snbscripUons 
and  the  remainder  by  the  issue  of  bonds  secured  by  a  fresh  mortgage 
on  all  present  and  future  property  of  the  Company.  For  this  purpose  a 
mortgage  foi  $10,000,000  was  executed  on  the  first  day  of  October,  I8689 
the  trustees  being  Philo  C.  Calhoun,  William  Butler  Duncan  and  William 
Orton  of  New  York,  and  Mathew  F.  Maury  of  Virginia.  The  bonds 
issued  under  this  mortgage  have  thirty  years  to  run  from  October  Ist, 
1868,  and  are  made  payable,  principal  and  interest  in  gold,  either  in 
New  York  city  or  London.  They  bear  seven  per  cent  interest  free  from 
United  States  Government  tax,  payable  in  gold  or  sterling,  at  the  option 
of  the  holders.  The  mortgage  deed  also  provides  for  an  accumulative 
sinking  fund,  to  commence  one  year  after  the  completion  of  the  road. 
Of  the  total  issue  authorized,  $2,000,000  are  to  be  set  apart  in  trust  for 
the  payment  of  the  bonded  and  floating  debt  of  the  Virginia  Central 
Kailroad  Company,  to  whose  property,  rights,  branches,  Ac,  the  Chesa- 
peake and  Ohio  Railroad  Company  succeeds.  By  special  acts  of  Virginia 
and  West  Virginia  all  the  property  of  the  Company  is  exempt  from  State 
taxation  until  10  per  cent  dividends  are  declared  from  net  earnings  upon 
the  capital  stock. 

The  Chesapeake  and  Oliio  Railroad  will  pass  through  a  country 
abounding  in  natural  resources — ^iron,  coal  and  salt  being  among  its  prin- 
cipal products.  It  will  connect  the  Western  waters  and  those  of  the 
Atlantic  by  the  shortest  line,  and  at  its  ocean  termini  find  harbors  capable 
of  receiving  the  largest  class  of  ships.  Norfolk  has  28  feet,  Newport  News 
22  feet  and  West  Point  21  feet  water.  The  distance  from  Richmond  to 
tbe  Big  Sandy  is  405  and  to  Point  Pleasant  398  miles.  From  Rich- 
mond to  Cincinnati,  by  the  Chesapeake  and  Ohio  Railroad,  the  distance 
is  545  miles,  to  Louisville  621  miles,  to  Chicago  792  miles,  and  to  St, 
Louis  885  miles.    The  shortest  existing  lines  from  Cincinnati  to  New 


1869]  SYAVSyilLI  AVB  OBAWrORDBTILLX  RAILROAD.  25 

York  is  ?56  roileR,  from  Chicago  to  New  York  911  milee^  and  from 
LonisTille  to  New  York  862  miles.  It  is  thus  apparent  that  the  distances 
ftom  the  Ohio  River  to  tide-water  are  much  shorter  by  this  route  than 
inj  now  eTisting,  and  also  that  it  must,  in  the  order  of  things,  become  a 
strong  competitor  for  the  commerce  originating  in  the  great  interior  and 
a^^rr^iating  in  the  Atlantic  seaboard  porta.  The  establishment  of  steam- 
ship lines  from  Norfolk  to  the  principal  freight  ports  is  a  part  of  the  pro* 
gramme. 

If  we  were  to  measure  the  ultimate  success  of  the  whole  road  by  the 
success  of  a  part  which  has  been  in  operation  for  years,  we  should  fidl  short 
of  what  promises  to  be  the  actual  result.  The  existing  portion  of  the 
iiae  has  no  western  connections,  and  its  terminus  is  in  the  midst  of  a  wild 
and  bnt  partially  improved  country.  Yet  in  the  year  1867-68,  the  gross 
esminga  amounted  to  $599,354  06,  and  the  net  earnings,  after  paying  all 
expenses  on  account  of  operations,  amounted  to  $162,705  57,  enough  to 
pay  7  per  cent  on  the  whole  outstanding  debt  and  liabilities  of  the  com- 
psay  and  leave  a  considerable  surplus  for  the  stockholders.  As  the  road 
is  extended  to  the  Ohio,  it  will  then  have  changed  its  local  characteristics 
and  assumed  those  of  a  great  trunk  line,  and  with  this  change  nust  come 
far  mora  favorable  results. 


ETANSTILIE  AHD  CRAVFORDSTILLB  SlILEOAB. 

As  now  existing,  the  Evansville  and  Crawfordsville  Railroad  expands 
in  a  north  and  south  direction  between  Terre  Haute  and  EvansviUe,  Ind., 
adtttance  of  109  milea,  with  an  extension  northeast  from  the  first-named 
d^  to  Rockville,  23  miles  in  length.  By  July,  1869,  EvansviUe,  the 
aoothem  terminus  of  the  road,  will  be  connected  by  the  EvansviUe,  Hend- 
enon  and  Nashville  Railroad,  now  in  rapid  progress  with  Nashville,  and 
tbence  with  lines  diverging  southeast,  south  and  southwest  to  the  Atlantic, 
Golf  and  Mississippi  River.  At  Yincennes  it  will  be  intersected  by  the 
line  now  being  constructed  between  Indianapolis  and  Cairo,  and  at  Terre 
HsQte  by  the  line  between  Indianapolis  and  St.  Louis.  Terre  Haute  will 
also  be  the  southern  terminna  of  the  Chicago,  Danville  and  Terre  Haute 
Rulroad,  which  will  afford  a  very  direct  line  to  Chicago,  a  few  miles  north 
of  Terre  Haute,  the  line  now  under  construction  between  Indianapolis  and 
Paris,  and  at  Rockville  the  line  between  Indianapolis  and  Paris  (the 
Indianapolis  and  St  Louis)  will  cross  it.  llie  further  extension  of  the 
road  to  Crawfordsville,  a  distance  of  less  than  20  miles,  willl  connect  it 
vilh  the  northern  division  of  the  Louisville,  New  Albany  and  Chicago 
Sailioad,  and  also  with  the  Toledo,  Wabash  and  Western  Railroad,  and 


26  STAVSTILUB  Ajn>   OBAWFORDSYILU  RAXUtOAD*         [t7aillMlf3f, 

other  lines  pointing  north,  northeast  and  east  Thus  a  line  which  haa 
hitherto  heen  almost  isolated  from  the  commercial  world,  is  to  become,  at 
an  early  date,  a  link  in  one  of  the  great  central  north  and  sonth  lines  from 
the  Lakes  at  many  points  to  the  Gulf  of  Mexico,  with  connections  which 
will  give  it  outlets  on  the  South  Atlantic  coast  at  Charleston  and  Savannah, 
and  on  the  Mississippi  at  Memphis  and  New  Orleans. 

The  rolling  stock  on  the  road  is  ample  for  its  present  business  demands. 
At  the  close  of  the  last  fiscal  year  (August  31,  1868),  this  consisted  of  15 
locomotives  and  216  revenue  cars,  vis.:  11  passenger,  1  paymaster's,  4 
baggage,  mail  and  express,  81  local  and  37  compromise  box  freight,  28 
platform,  91  coal,  10  stock  and  10  construction  cars;  also  27  hand  and  17 
push  cars.  The  number  of  miles  run  by  trains  in  1866-7)  was  272,310, 
and  in  1867-68,  254,192. 

The  gross  earnings,  expenses  and  profits  for  the  last  two  years  are 
compared  in  the  following  statement : 

1806-67.       1867-68.    Inereste.  D«cr*se. 

PttMUger  earning $190,676  S8 $lfl8.081  :ffif!|,406  06  $ 

Freight 889,947  64    S80,48t  70     59,405  81 

Ezpro«t 16,66.' so     19,01166    8,449  06     

M«ll 9,40000       9,4rm«0     

BenU 607S6         81S  OO         4  76     ........ 

Orott  earninfft $607,798  81  $458,186  84  $ $54.00616 

Operating  azpenset 844,444  40   »86,866  86     9,lTi  16 

XanilngB  over  ezpentes |168  847  98  $117,980  09  $ $46,489  88 

The  following,  compiled  from  the  annual  reports  of  the  company, 
shows  the  progressive  development  of  business  on  the  road  from  1858 
to  1868: 

Tears  Earnings.  Expenses.  Profits. 

1868-59 $171,(H8  90  f  97,797  87  $78,86163 

1869-00 .   8U0,»44  87  ]0-J,tt7>)  A8  108,978  88 

1800-61 998,858  18  118,868  90  lf«,980  88 

1861-68   944.240  48  106,95150  137,5t«  9S 

l«6l-6:i 884,053  10  164,196  89  169861  71 

1888-64 45M88aS  818,689  18  88^684  88 

1864-66 5^^9.18768  818,407  88  84>i,780  40 

lSGS-66   46«,97<  75  845.878  80  117.688  OS 

3816  67 607,798  88  844,444  40  163,847  98 

1667-68 » 458,18684  886,960  86  117,980  09 

The  income  account  for  1867-68  shows  the  receipts  from  all  sources, 
including  balance  from  previous  year,  1^32,427  07,  at  1486,768  18,  and 
the  expenditures  on  all  accounts  at  $510,393  57 — balance  against  income 
$23,625  30.  The  expenditures  were:  Expenses  as  above,  $335,266  25; 
interests  $96,083  00;  internal  revenue  taxes  $6,108  98;  State,  county 
and  municipal  taxes  $7,754  10 ;  construction  $46,028  71 ;  equipment  (new 
freight  cars)  $14,056  82;  and  increase  of  supplies  $6,095  51 — total, 
$510,893  57.  No  dividends  were  ever  paid  on  the  company's  common 
stock  since  1850,  when  a  scrip  distribution  was  made. 


1869] 


SB80UR0E8   OF  VATIOHAL  BAlSKIKO  ASSOCIATIONB, 


27 


He  financial  coDdition  of  the  company,  as  eihibited  on  the  general  bal- 
anee  «lieet  of  Anguat  31, 1868,  is  sliowii  in  the  following  Bummary : 


Ctoital  stock  paid  in $997,86118 

FrktlOB  1  stock 8,W8S6 

Stock  dlTLon8Sa,imGU'ed 87,17109 

Preferred  stock 100,00000 

7  p.  c.  bonds,  mala  line l^OOiSOOOOO 

*^        BockTiUo  ext 150,0-1000 

DacotberUoM 90,99646 

Otk  rllsbmUea 81,868  84 

£am'fBexp*ndMiacoiMt*ii 877,044  81 

BAlsoeeofboomoaoooaiit 99,708  99 

Idal 9,886,19907 


Conttmctlon., $9,409,78865 

Eqalpm«nt    858,89198 


Kt^lesti  e. 

Diet,  foir  ground  stock 

Faelonhand 

Materlaltin  shps 

C^ash $11,95490 

Due  from  Mgents 14,40649 

Open  Accounts. 8,07960— 


7,967  70 

1,000  00 

16,096  17 

91,861 61 


90,789  91 


Total 9,886,12907 


Tbe  fiinded  debt  is  described  as  followa : 


Ffntmortgsge  (main  Hne)  7  p.  cent  bonda  of  1^69,  dne  Jannaiy  1, 1860 $860,000 

(       "       )  "  0fl864,du8  May  1,1869 740,000 

**  (BockYine«xten8ion)7p.  c.  bonds,  daeVeb.  1,1881 160.090 


The  first  mortgage  (main  line)  bonds,  due  in  1860,  are  being  exchanged 
iDto  new  sinking  fund  bonds  having  twenty  years  to  run. 


^^■^>^^^%^»^<^»^N^%^>^^^^^^fc^^^fc^^^^*^i^»^%*»»^<i 


AGSIIBITB   RESOURCES  AND  LIABILITIES   OF  THE  NATIONAL    BANKINS 

ASSOCIATIONS  FROM  OCT,,  1863,  TO  OCT.,  1868. 

We  give  below  the  official  returns,  showing  the  aggregate  resources 
and  liabilities  of  the  National  Banking  Associations,  from  October  1 863, 
the  date  of  their  first  return,  to  October,  1868,  the  date  of  their  last  re- 
turn. It  will  be  seen  that  the  total  number  of  banks  at  the  former  date 
was  sixty^iz,  with  a  capital  of  17,188,393;  while  now  there  are  1,645 
banks*,  with  a  capital  of  $420,634,511.  Since  October,  1866,  however, 
both  the  amount  of  capital  and  the  number  of  the  banks  have  remained 
about  the  same,  varying  slightly  from  year  to  year.  The  National  bank 
circulation  now  outstanding  is  1295,760,480,  while  the  State  bank  cir- 
calaiion  is  reduced  below  $3,000,000.  Some  of  the  main  items  of  the 
returns  show  the  following  progress  from  yeai  to  year: 

United  Statea   Banknotea 
D.te.  Vo,     Capital.  Loans.  bonds.        clrcalation. 

1868,  Oct 66     $7,188,898     $5,466,088     $6,662,600    $ 

^864,Jaii 18»     14,740,522     10,666,09S     16,112.250  8A,166 

ISM,  Oct 607     86  782,802     98,2-8,657  108,064,496     46.260,604 

1866,JaD 648  186,618,874  166,448,718  176,578,760     66.769.875 

IWJ.Oct 1,618  898,157,206  487,170,186  427,781,800  171,821,908 

186«,JaD 1,^79  408.857,846  600,660,109  440,879,850  218239,6D0 

1866,  Oct 1,648  416,27  ,969  6  8.247,608  426,657,850  280,129,558 

J887.Jtn. 1.644  419,779,789  608,411,901  428,120,700  •j9I,098.29* 

18«7,Oct 1,648  420,078,415  609,676,214  418,968,050  298.887,941 

1868,  Jan 1,M2  420,250,790  616,608,479  420.644,450  2  4.877, !»90 

1868,  Oct 1,645  420,634,511  657,6t>8,847  414,66M00  295,769.489 

Besides  the  foregoing  national  securities  the  banks  have  held,  as  will 
^  seen,  compound  interest  notes  to  a  large  amount,  and  at  the  last 
retumheld  $59,080,000  of  the  Three  Per  Cent  Certificates. 


28 


BXSOiTROis  OF  KATioirAL  BAVKiKo  JLfiSOOiATioiis.        [•/antfory, 


Aggregate  ttumtcu  and  liaMiiie$  of 


1868b 


^     Bftfonroan 

JAKUART. 

APBZL. 

JOLT. 

OCTOBKB. 

1 

66baaka.^ 

1 

T^kBBfl  And  dlieomilfl  .......... 

$5^  466;  086  33 

6166^60000 

106.009  1S 

9;  625^  507  06 

177, 565  69 

53.808  93 

9,503  60 

TT   a  Kfwttla  mnA  mnm  nrltfaw. .  .  .  .  . 

OthflT  Itftini 

Tln«i  friMii  iiAt*l  iiiiA  othflTbAnkflx 

1 

RaaI MitAta  ftimltnra.  Afl...... 

Ctirrtipt AZiMiniiifl  .•••••..••.*. 

T>rMmlffinii|  ............ ,,-,T««- 

i^h»s^u  »mA  A4li«r  (>aah  Itmii- . . 

492,138  59 

nnta  of  imilonRl  niAloth*'  Kimka. 

764,796  00 

Bpecto  and  other  lawftil  moMj. 

1, 446, 607  m 

Total 

16^797.644  00 
0^ 

1804L 


130  banks. 

900bfliik& 

479lMiik& 

807  banks. 

LoMif  Mid  4iw<niBti «-.......« 

$10,666,095  60 

15^112,250  00 

74,57148 

$31,593,943  43 

41,175^150  00 

439;  059  95 

4,699,479  56 

8,537,906  94 

755,606  41 

393;  720  77 

9.651,916  96 

1,660,000  00 

22,961,411  64 

$70;  746, 613  33 

99;  530;  500  00 

849;  017  73 

19,938,730  13 

17,337,558  66 

1,694,040  46 

502,34131 

8.057,122  90 

8.344,172  00 

43,283,796  23 

$93, 938;  657  93 

108,064,496  00 

1,434^643  76 

19.965^720  47 

14,051,396  31 

2. 202. 318  SO 

1,021,569  02 

7,640,169  14  J 

4.687,727  00 

44,801,497  48, 

v.  8.  bonds  and  McnrltlM 

Othtr  f<*T**f          - 1     I   - 

Dae  fhmiuUIoBal  banki...*.. 

Dae  from  other  b'ki  and  banken 

Real  eatate,  ftimltara,  Ao 

Cnrreot  expemea  ......a...... 

*4, 786, 124  58 
381, 144  00 
118,654  43 

577,507  92 

805.521  00 

5^016,622  57 

Cheeks  and  other  cash  items. . . 
BUlsof  national  and  other  banks. 

Total 

37,630,69158 

114,820;287  66 

892,973,803  75 

297. 108, 195  30 

1 

1865. 


Loans  and  discounts 

U.  8.  bonds  and  securities. 
Other  items 


Dne  from  national  banks 

Doe  from  other  b'ks  and  bankers 

Real  estate,  fomitnre,  Ao 

Carrent  expenses 

PremJoms 


Checks  and  other  caA  items. .. 
Bills  of  national  and  other  banks. 

Specie 

IfSgal  tender  and  frnatl  car*ncy . 

§   Total 


643 


$166,448.718  00 

178,578,750  00 

3.294,883  27 

30, 820,  If  5  44 

19,836,072  83 

4,083,226  12 

1,053,725  34 

1,323,023  56 

17,837.496  77 

14,275^153  00 

4,481,937  68 

72,535^504  67 


512;  566,066  68 


907  banks. 


$252,404,906  07 

277,619,900  00 

4,275^769  51 

40,963,943  47 

22,554,636  57 

6.525,118  80 

9.298,025  65 

l,823t291  84 

98.681,394  13 

13.710,370  00 

6.650,660  47 

112,999,320  50 


1,295  banks. 


$369,449,743  08 

391,744,890  00 

19;  560, 190  38 

76,977,539  50 

96, 078, 028  01 

11,931,257  28 

2,388,775  56 

9;  243, 210  31 

41,314,904  50 

91,651,826  00 

9.437,060  40 

168,426^166  55 


1,513 


$487, 17Q,  136  S9 
427,731,300  00; 
19,048^513  15  I 

89,978,980  55, 

17,398,232  25 

14,7Q3.9fl  77  ' 

4,539,583  11 

^  2,985^501  06  1 

72;  309. 894  44  , 
16,247,941  00  1 
14.906.144  23 
193,004,364  G5 


771,514,939  10     1,12Q,4SS»481  ^     1,300, 7<Jd;C74  49 


1869] 


BSBOUBOXB  OF  HATIOirAL  BANKINO  A880CIAT10K8. 


29 


Ike  Na^tmai  IkmkU^ 


1868. 


JASVJJIT. 

APRIL. 

JULY. 

OCTOBBEb 

■ 

66b«alai 

CfepHd  Modk — 

$7,188,393  00 

128,030  06 
8,497,061  84 

riiAviJs^  pvoflti  •*••■•••••■•■ 

D««  t»  Bstl  and  «»tliar  Ims]U*.. 

Oih»MfB||   ...„   ,.^  ........ 

8,360  51 

Totd 

16^797,644  00 

• 

1864« 


139lMa]u. 

309banki. 

473lMaki. 

597banki. 

Cifltaltfack. 

$14, 740;  598  00 

$43,304,474  00 

$75,313,945  00 

1,129,910  83 
3,094,330  11 

35,825,665  00 

119.414,239  03 

37,332,006  37 

31%  708  03 

$86,782,803  00 

8,010,886  10 
5,962,392  28 

45,260,504  00 

122,  ir>C,  536  40 

34,862,384  81 

43.289  77 

R«r|>lqttaMl     a      a....      X. ....... 

U&divided  praAti 

433,897  81 

30,155  00 

19,450,499  53 

3,153,779  38 

828,914  66 

1,625,656  87 

9,797,975  00 

51,274,914  01, 

6.814,930  40 

3,102,337  38 

5en  hank  ooftes  oatrtandliic... 
iBdirUoal  mad  other  depoaiU  .. 
I>iw  to  nail  and  ofber  bcnki*.. 
iiih^'^tfm 

Total 

37,630^69158 

114,820,287  66 

352;  373, 803  75 

297, 108, 195  30 

1865. 


Ca^iM 


^vptai  fond 

I'adiMifed  proftta 

K«1  baak  netea  oatatandlsg. .. 

ludWldval  iBkd  oOusr  depotUs  . 
r-ut>4  Btatra  depoalta 


(n>i>  to  ttstioDftl  banlu 

«*i.«  to  aaiTl  and  other  b«mkt*.. 


€43 


'jA»tJi 


Total. 


$135^616,874  00 

8,663,311  83 
12,283,813  65 

66^769,375  00 

183,478,636  98 
37,764,729  77 

30,619,175  57 
37, 104, 130  63 

365,630  87 


513,568,606  G8 


907han]uL 


$315,326,023  00 

17,318,943  65 
17, 809, 307  14 

96,896,488  00 

863,961,473  13 
57,630,141  01 

41,301,031  16 
59,692,581  64 

**"»   578.951  37 


771,514,939  10 


1,295  hanks. 


$325,834,598  00 

31,303,565  64 
83,159,406  17 

131,452,158  00 

398,357,559  59 
58,032,720  07 

78,261,045  64 
79,591,594  93 

462,871  C2 


1,126,455^481  66 


1,513  hunk!. 


$393,157,206  00 

38,713,3?0  72 
32,350,278  19 

171,331,903  09 

60O,91O,P73  22 

43,170,281  -Jl 

90,  W4.  Kr;  m 

84, 155, 161  \i7 


944.CC3  70 


1,359,768,074  49 


80^ 


&E8oimos8  or  nauok^l  bakkiko  abbooiatiovb.         \Januaryf 


1866. 


Ratoorcai. 

jAlfUART. 

APRIL. 

JULY. 

OCTOBOL. 

1,579  banks. 

0 1.612  banks. 

1,633  banks. 

1.643  banks. 

T^Hns  and  diieoQDte 

ir.S.bondfidop'd  towcurecirc'n. 
Other  U.  S.  bondiandsecariflei. 
Oih'r  stocks,  bondM,aad  mortg*! . 

Dae  from  n  ation  r1  baakfl 

Dno  iVoin  other  b'ks  and  b'kerf. 

Real  entate.  furniture.  &c 

Cnrrent  extionios. ............ 

$500, 650. 109  19 

298. 376, 850  00 

142,003.500  00 

17,483,753  18 

93.254.551  02 

14. 658, 2-^29  87 

15.436,296  16 

3.193.717  78 

9,423,918  02 

89,837,684  50 

90,406,442  00 

16.909,363  80 

187,846,548  82 

$528,080.526  70 

315.850.300  00 

125. 6-25, 750  00 

17,379,738  93 

87,564,329  71 

13.682,345  12 

15.895,564  46 

4.927,599  79 

2,233.516  31 

105,490,619  36 
18,279.816  no 
13,854.881  66 

193,542,749  28 

.$550,327,444  17 

326,383,350  00 

121,152,950  00 

17,565,91146 

96,692,433  23 

13.982.227  06 

16,728,533  43 

3,030,439  01 

9.398.862  26 

96. 077. 134  S3 

17.666.722  00 

12.627.016  59 

901.408.863  58 

$603,947,503  5S 

331,733.900  OO 

tt^  94, 924, 150  OO 

'^  15,887.490  06 

107.597.858  4t 

12,136,549  87 

17,122.117  01 

5,298.375  86 

8,490.891  81 

100,676,647  55 

17.437,699  OO 

8.170,835  97 

205,770,641  38 

Promiunif .................... 

Checks  and  other  cash  items. . . 
Bills  of  national  and  other  banks. 
Bpf^cio ........................ 

Legal  tenders  and  froctl  cor'ncy. 

Total ~ 

1.402.480,964  34 

1,442,407.737  31 

1.476^941,877  97 

1,52^493,960  50 

1867. 


1,644  banks. 

1,639  banks. 

1,633  banks. 

1,643  banks. 

TiOans  and  dlsconnts  .......r.x 

$608,411,901  56 

339, 180, 700  00 

36,015,950  00 

52,924,050  00 

15,072,737  45 

92,492,445  95 

12.981,445  40 

18.861.137  63 

2, 795, 322  36 

9,852,945  23 

101,3:10.984  35 

19,205.584  00 

1. 176^  142  00 

16, 634, 072  10 

104,  586. 827  23 
81.925,100  00 

$597,124,098  66 

338,388,650  00 

38,405,800  00 

46,629.400  00 

90.194.875  91 

94,035^405  85 

10.720,271  39 

19.537.898  38 

5, 665, 429  97 

3. 402. 629  76 

87, 876, 535  84 
12,868,189  00 
859,748  00 
10,335.492  33 
93.661,377  61 
84,029,095  00 

$588, 100, 703  69 

337,355.250  00 

38,309,750  00 

45,629,300  00 

91,453,040  43 

92,287,906  39 
9.603.442  12 

19.755.023  70 
3,917,747  70 
3,331,247  11 

128,255,674  49 

16^190,898  00 

531,264  00 

9,602,072  97 

102,431,346  96 

75,456,915  00 

$609,675,914  61 

338. 640, 150  OO 

37.862,100  00 

49,460.800  00 

21,507,681  42 

95,217,610  14 
8.400,726  47 

20,639,708  23 
S,ie97.494  13 
2.764,186  35 

134.591,731  51 

11.841,104  00 

333.209  00 

10,256,130  30 

100  550,849  91 
56,888,250  00 

U.  H.bonds  dep'd  to  secure  etrc*n. 
IJ.S.bonda  dep'd  to  seo'ra  dep'ts. 
U.  8.  bonds  and  sec'tles  on  hand . 
Oth'r  stocks,  bonds,  and  mortar's. 

Due  from  national  banks 

Duo  from  other  b'ksand  b'kers. 

Real  estate,  furniture.  See 

Current  ezDenses ............. 

Premiums .................... 

Checks  and  other  cash  items. .. 

BilU  of  national  bauks 

Billtf  of  other  banks 

Bpecie 

Legal  tenders  and  fraet'l  cur'ncj 
Compound  Interest  notes 

Total 

1,506,448,245  28 

1,463,797,897  00 

1.491,433.589  49 

1,496;  927, 146  07 

1808. 


1,642  banks. 

1,643  banks. 

1.640  buka. 

1,645  bank!. 

Loans  and  discounts. 

$616,603.479  89 

33^.004,200  00 

37,315.750  00 

44.164,560  00 

19,365,864  77 

99.311.446  60 
8.480.199  74 

91.125,665  68 
2,986,893  86 
2,464,536  06 

109,390,266  37 

16, 655, 572  00 

261.S69  00 

18,103.980,49 

116.234.367  78 

3!).  997, 030  00 

8,245,000  00 

$628,029,347  65 

339, 686, 650  00 

37,446.000  00 

45,958,560  00 

19,874,384  33 

95,900,606  35 
7,074,297  44 

22.082,570  25 
5.428,460  25 
2, 660, 106  09 

114,996.036  23 

12,573.514  00 

196,106  00 

15.379,654  53 

86.215.859  16 

sn  38,917,490  00 

'^24,255,000  00 

$655,799.546  49 

339, 569. 100  00 

37,853,150  00 

43,068.350  00 

90,007,327  42 

114,433,979  93 

8, 642, 574  73 

92,699.829  70 

2,938,519  04 

9,432,074  37 

124,076,297  71 

13.210,179  00 

342,550  00 

90,755,919  04 

102.029,458  91 
19,473,220  00 
44,905.000  00 

$657,668.647  83 

340,487.050  00 

37.363.150  00 

36.817.600  00 

90,693,406  40 

102.278,547  77 

7.848,839  24 

22.747.875  18 

5.278,911  29 

1,819.815  50 

143,941,394  99 

11,842.974  00 

922,668  00 

11,749,449  14 

94.716,966  97 

^    4,513,730  00 

059,060.000  00 

U.  S.boadadep'd  to  lecnreclrc'n. 
IT.8.bondM  dep'd  to  secVe  dep*ts. 
U.  8.  bonds  and  sec'ties  on  hand. 
Olh'r  stocktt,  bonds,  and  mortg's. 

Due  from  national  banks 

l>ue  lr>m  other  b'ks  and  bank'rs. 
He*-  estate,  furniture,  4tc 

Pre*pi*ius 

Checks  and  other  cash  items. .. 

Bills  of  national  banks 

BIIU  of  other  banks 

Specie 

I jegal  tenders  and  fraet'l  cur'ucy 

Compound  interest  iiotrs 

Three  per  cent,  coi  titlcates .... 

O  ToUl 

1,499,770,033  14 

1.496^674,639  26 

1,579,167.076  26 

1,558.367,009  94 

18d9j 


RISOUR0X8  or  FAnONAL  BANKIKa  A8BOCIAnON8. 


81 


1866. 


H      LtehmtfM. 

JA5UARV.         t             APRIL.             1          '    JULY. 

OCTOBER. 

1,579  baaki. 

I,C12  ba&ki. 

1.633  bank!. 

1.643  bankB, 

fr'Trt  ■twrV                         

$408,357.346  00 

43,000,370  78 
28,972,493  70 

213.239.530  00 
45.449,155  00 

520.212,174  32 
29,747,236  15 
..•...■.••  .  ..... 

$409,273,534  00 

44,6P7,810  54 
30,964,423  73 

248.886,282  00 
33,eiX}.865  00 

534,734,050  33 
29, 150, 729  83 

$414,170,493  03 

50,151.991  77 
29. 295, 526  03 

267.7ra678  00 
19, 992, 03d  00 

533.330.759  81 

3C.  038. 185  03 

3.  lG<i,  8U2  22 

96.496,726  42 
25, 945, 586  99 

$113,278,969  00 
.•in  3w9  277  64 

Svpluitaid... ••.••••.  ••..•.. 

Vft^^ridad  DTofitfl. 

32, 583. 328  33 

2e0.1?9,55S00 
9,  743,  L25  00 

563.510.570  79 
34>.420,  819  bO 

K^ttooal  bask  notes  ontiCaading. 

IzirAaal  d^T^oaUM 

r  8.  depo«iu 

hifuct  U.  8.  disbonlBisoiBc^ 
l>s»  to  oathmal  banks 

2,979,955  77 
110. 531. 957  31 

2ti.95i,498  an 

94,709,074  15 
23,793,584  24 

89,067,501  r>4 
21,841,641  35 

Total 

1,402,480,964  34 

1. 442. 407. 737  31     1-  476. 241.  fiT7  27  1 

1,525,493,960  50 

—  f     ---1    —  --,    w-    -         w. 

1867. 


L,644bankk 

1.639  banlu. 

1.633  banki. 

1,643  banki. 

Cvvltalttoak 

$419,779,739  00 

S9,9(r7,222  14 
86,687,323  35 

891,093,294  00 
6,961,499  00 

555, 17!),  944  45 

87.225,663  60 

2,275.384  79 

92,755.560  86 
84,322,614  07 

» 

$418,844,484  00 

60.193,223  58 
31,066,365  93 

291.880,102  00 
5, 955, 147  00 

510,593,098  63 

27,396,477  89 

2,582,015  44 

91, 152. 252  58 
23,062,729  95 

$418,123,148  00 

63. 229, 583  62 
30, 5tiC,  670  86 

291,491.038  00 
4,522.505  CO 

537, 882, 050  49 

29, 7W,  (.*9  09 

3,407,008  11 

89, 817, 032  74 
22,608,954  58 

$420,073,415  00 

Rnrpha  ftiad.. .....•«.. ••>•.. • 

66. 695. 581  01 

r«4.vidfe4  prffftta....... ....... 

33, 751. 446  21 

Xaiujul  bank  BoteflOtttatandlog. 
fetaSfl  baak  notn  outstandisff  - . . 

IsdlTiteal  drooalta 

293,887,941  00 
4. 092, 153  Oi) 

537.976.834  03 

r.S.d>poiit« 

23,280,763  16 

Oep*uar  C.  S.dbboxlf&g  offie*ri. 
l^«  tff  national  bankt 

4,412,«25  58 
93.111.240  89 

Doa  taollMr  bank*  aad  banken. 

19,641,940  20 

Total ^ 

1,506.448^845  28 

1,462,727,897  00 

1,491,433,583  49 

1, 490, 927. 146  07 

1868. 


CapftaiMo^ 

Svphnfkiikd 

VnfiTldidprofiU 

KaHonalbaak  notaa  OBtataaAng. 
Stat*  baak  notes  ontatandlng. . 

ladSrMaal  deposiU 

r.8.dtporfta 

Dep'taof  U.  S.  dUbaxaiag  oflle'ra. 

Da*  to  aalioaal  banks 

Diato  aihar  banks  and  baakan. 


1,6421  banks. 


$480,960^790  00 

70,586.125  70 
31,399,877  57 

294,377,390  00 
3,792,013  00 

531,827,088  04 

84,305,638  03 

3^206,783  03 

98,144,669  61 
81,867,648  17 


1,499.770,023  14 


1.643  bank!. 


$480,676,210  00 

72,349,119  60 
32,861,597  08 

S95, 336, 044  00 
3, 310, 177  00 

559,017,191  67 

22,730,342  77 

4,976,662  31 

94,073,631  25 
21,323.636  60 


1,406^674,633  88 


1,640  baoki. 


$480,105,011  00 

75,840,118  94 
33,543,233  35 

294,908,264  CO 
3,103,771  00 

575,842.070  12 

84, 603, 676  96 

3,499,389  99 

113,306,346  34 
87,355^204  56 


1,513,167,076  86 


1,645  banks. 


$420,634,511  00 

77,995,761  40 
36, 095, 883  98 

295. 769. 489  00 
2, 906. 352  00 

579. 686, 549  60 

17, 573.  'fftn  64 

4,570,478  16 

99, 414, 397  28 
83,720,629  18 


1,558,367,502  84 


n 


82  WKis  BAsn  HJLTX  ws  VOB  snoMPnov.  [t/oniforyy 

VUT  BASIS  liTB  WE  FOS  USUIPTIOI  t 

Whateyer  may  be  the  feataree  of  the  plan  ultimately  adopted  for 
restoring  the  specie  basis,  to  be  snccessful  it  most  include  a  resenre  of 
coin  adequate  to  sustain  the  note  circulation.  It  is  not  oar  present  ob- 
ject to  inquire  what  may  be  deemed  an  adequate  reserve,  but  rather  to 
ascertun,  as  nearly  as  data  may  permit,  what  amount  of  gold  and  silver 
we  have  in  the  country,  leaving  it  for  after  consideration,  under  what 
conditions  that  supply  is  a  basis  broad  enough  for  the  resumption  of  specie 
payments. 

There  is  much  vagueness  in  the  public  mind  upon  this  very  essential 

point ;  and  we  fear  that  to  this  indefiniteness  the  recent  able  speech  of 

Senator  Morton  may  have  added  positive  misapprehension.    While  the 

country  owes  much  to  the  Senator's  clear  elucidation  of  many  questions 

affecting  resumption,  and  while  his  plan  will,  by  many,  be  conceded  to 
be  the  most  consistent  and  feasible  of  any  yet  introduced  into  Congress ; 
yet  it  does  appear  to  us  that  when  he  comes  to  the  very  important  ques- 
tion as  to  the  existing  supply  of  coin,  he  handles  figures  with  a  prodigal* 
ity  which  bespeaks  enthusiasm  rather  than  cautious  research.  We  pre 
sent  the  Senator's  own  language : 

There  is  now  io  the  tresbory  a  aarplue  of  not  leas  than  $70»00  >,000,  and  tike  ac- 
eraiog  Borplus  under  the  present  tariff  for  the  next  two  years  cannot  be  lees  than 
$100,000,000,  which  will,  together,  make  1170,000,000.    It  ia  very  difficult  to  fiirm 
an  eaimate  of  the«  amount  of  gold  in  the  country.    The  Director  of  the  Mint  in 
Philadelphia,  in  1861,  estimated  the  rmoont  <f  gold  in  the  country  at  that  time  to 
he  $276,000,000,  which,  I  have  no  doubt,  waa  much  short  of  the  ai^tual  amount.  The 
Comptroiler  of  the  Onrreocy  (Hr.  Hulbard),  ia  his  report  last  year,  estimated  the 
gold  prodoct  from  our  mineSp  from  the  SOth  of  June,  1860,  to  the  80th  of  June  1867, 
at  $411,820,000.     The  imports  of  gold  from  abroad  during  the  seme  period  were 
$78,988,687.     The  products  of  the  minea  durfaig  the  year  en  ling  June  80, 1868,  are 
estimated  at  $75,000,000,  making  in  the  aggregate  $840,268,6S7,  to  which  may  be 
added  the  gold«circulation  in  Calforaia,  and  otkft  gold  producing  States,  not  in- 
cluded in  the  aboye  calculation  (estimated  at  $50,000,000),  making  in  a'l  $890,298,- 
687.     Deducting  the  amount  of  gold  exported  during  the  same  period  ($  177,740,908), 
leaves  a  balance  of  $412,612,679.     There  is  also  another  large  import  of  gold  into 
the  country  from  Europe,  of  which  there  is  no  official  record,  the  amcuot  of  which  can 
only  be  guessed  at.    I  mean  that  which  is  brought  in  small  sums  by  emigrants,  who 
come  to  our  country  at  the  rate  of  half  a  millioo  a  year.    I  hare  heard  various  coo- 
jeciures  as  to  the  amount  thus  brought  to  the  country,  and  none  hare  put  it  lower 
than  $20,000,COO  per  annum  for  the  eight  or  ten  years,  making  the  sum  of  $160,000,000, 
whicb,  added  to  the  above,  makes  a  total  sum  of  $572,612,679.    But,  to  make 
allowance  for  mistakes  aud  eza^tgerations,  I  estimate  the  eold  and  silver  coin  in  the 
country  at  $400,000,000.    The  products  of  the  mines  ending  June  80, 1869,  may  be 
safely  estimated  at  $75,000,010,  and  after  that  at  $100,000,000  per  annum. 

Mr.  Morton's  balance  sheet  may  be  thus  summarised  :  ' 

(l)Gold  in  the  Atlantic S totes  in  1861' $276,(00,^00 

(2)  Product  of  mines  for  7  years  ending  June  «,0, 1867.  411, 82  ^000 

(8)  Prodoct  of  mines  past  year 75,000,000 

(4)  Imports  for  7  yVs^odiog  June  30, 1867 7e' ,988,0  0 

(6)  Circulation  in  Pacific  SUtes 50,000,000 

(6)  Brought  by  emigrants  last  8  years It0,0*0,000 

Total  supply  July  1,  1860,  to  June  80, 1868 $1,0^0,258,000 

(7)  Exported  within  same  period • 477,740*000 

Stockof  gold  July  lst»186S $   672,518,000 


1869]  WHAT  BAMS  HATI  WX  VOR  BISUlCPnOV.  83 

The  Beoator  appears  to  have  been  inoreduloas  of  the  result  of  his  own 
ftatisticBy  and  therefore,  **  to  make  allowance  for  mistakes  and  exaggera- 
tioDB,"  he  throws  off  the  very  liberal  amount  of  $172,613,000,  and  lumps 
his  estimate  at  $400,000,000.  Let  us  see  how  near  this  singularlj  gen* 
erous  method  of  handling  figures  brings  ns  to  the  truth,  taking  the  items 
seriatim. 

The  Director  of  the  Mint,  in  1801,  estimated  the  stock  of  coin  then  in 
the  country  at  $276,000,000 ;  Mr.  Morton  accepts  that  estimate,  at  the 
asme  time  having  no  doubt  it  was  ^much  short"  of  the  actuifl  amount, 
Mr.  Chase,  in  his  annual  report  of  1862,  gave  it  as  his  opinion  that 
1210,000,000  covered  the  whole  supply.  These  figures,  we  understand, 
toindude  the  circulation  of  the  Pacific  States,  which,  taken  at  $40,000,000 
St  that  period,  would  leave  $170,000,000  as  the  supply  in  all  the  other 
States;  an  estimate  which  probably  is  not  at  all  under  the  truth.  For 
the  two  fiscal  years,  1869-00  and  1860-61,  the  specie  in  the  banks  aver- 
sged  $86,000,000.  What  amount  there  was  in  the  hands  of  the  people 
esn  only  be  vaguely  estimated.  Considering  the  preference  given  to  bank 
aotss  for  their  greater  convenience  in  handling,  and  especially  in  large 
smounts,  it  may  perhaps  be  very  safely  assumed  that  the  amount  of  bank 
circdation,  in  the  hands  of  the  people,  was  double  that  of  coin  so  circula- 
ting. The  official  reports  show  that,  for  the  three  years  next  preceding 
the  war,  the  amount  of  bank  notes  in  the  hands  of  the  people,  this  side  the 
Rocky  Mountains,  averaged  $168,000,000;  from  which  it  would  follow, 
adopting  the  ratio  of  one  dollar  in  specie  to  two  of  notes,  that  the  specie 
drcolating  from  hand  to  hand  outside  the  banks  was  about  $80,000,000, 
This  we  are  disposed  to  regard  as  a  veiy  liberal  estimate ;  and  adding 
thereto  the  $86,000,000  in  the  banks,  we  shonld  have  a  stock  of  $166,- 
000,000,  exclusive  of  the  Pacific  circulation.  If  our  estimate  be  correct,. 
Mr.  Morton  must  deduct  from  the  first  item  of  supply  about  $110,000,000,. 

To  the  second  item,  there  seems  to  be  reason  to  demur  rather  on 
acooont  of  its  being  an  under  estimate  than  as  an  ''exaggeration.**  Oar 
own  statistics  (see  the  Maoaziits  of  January,  1868)  would  lead  us  to« 
place  the  domestic  production  for  the  [seven  years  at  about  $40,000,000^ 
orer  these  figures ;  as  it  is  possible,  however,  that  we  may  have  estimated: 
too  liberally  the  amonnta  conveyed  from  the  mines  to  market  by  the 
auners,  we  are  willing  for  present  purpqpes  to  accept  the  estimate  of 
Comptroller  Holburd,  ma  given  by  Mr.  Morton. 

The  fourth  item,  imports  of  specie  for  the  seven  years  ending  June  80, 
1867,  contains  an  important  error.  The  oorrected  returns  of  the  Bureau 
of  Statistics  give  the  total  receipts  of  treasure  from  abroad  tor  those  years 
St  $128,900,000,  or  $49,800,000  more  than  Mr.  Morton's  figures ;  whiohf 
vs  presume,  leaves  no  room  for  question  that  the  Senator  is  in  error  to* 

$ 


34  WHAT  BASIS  HAYS  WE   FOB  RBSUHPTIOK.  [c/aniiory, 

that  extent.  The  fifth  item,  the  circulation  in  the  Pacific  States,  cannot 
probably  be  brought  into  the  calculation.  In  that  section,  there  has 
never  been  any  suspension  cf  specie  payments ;  and,  in  the  event  of 
the  other  States  resuming,  the  present  coin  circulation  of  the  Pacific 
coast  would  be  required  there,  as  at  present,  and  would  in  no  way  fadli. 
tate  the  effort  made  here  to  recover  the  normal  condition  of  afiairs. 
For  practical  purposes,  therefore,  it  would  be  as  legitimate  to  count  in 
the  supply  of  Great  Britain  or  any  other  foreign  country  as  that  of  Cali- 
fornia and  the  adjoining  territory.  The  sixth  item,  the  amount  of 
coin  brought  in  by  foreign  emigrants  within  the  last  eight  years,'  it  ap- 
pears to  us,  should  be  classed  among  the  Senator's  "exaggerations.'*  The 
number  of  emigrants  is  here  estimated  at  500,000  yearly,  which  exceeds 
the  truth  by  fully  one-third,  as  appears  from  the  official  returns  since 
1860.  The  amount  of  gold  brought  by  the  emigrants  is  averaged  by  Mr* 
Morton  at  140  per  head ;  which,  again,  considering  the  large  proportion 
who  come  depending  upon  finding  immediate  employment  or  upon  re- 
ceiving help  from  their  friends,  and  the  large  number  of  children,  must 
appear  to  be  an  extravagant  over  estimate.  It  would  probably  be  a  much 
closer  approximation  to  the  truth  to  take  the  arrivals  at  350,000,  and  the 
average  amount  of  coin  brought  by  each  emigrant  at  $25,  which  would 
give  a  total  supply  from  this  source  of  $70,000,000  for  the  eignt  years, 
which  is  $90,000,000  below  Mr.  Morton's  estimate.  One  very  important 
ofi&et  against  this  supply   has  escaped  the   Senator's  attention.     From 

thirty  to  forty  thousand  of  our  people  tvnry  year  n)ake  a  tour  to  Europe* 
taking  with  them,  in  the  form  of  coin,  not  less  than  $150  per  head, 
which,  within  the  eight  years,  would  take  nearly  $40,000,000  of  gold  out 
of  the  country.  Indeed,  were  we  to  accept  the  opinions  of  local  dealers 
in  foreign  coin,  we  should  place  the  estimate  much  above  this  figure. 
Upon  the  whole,  these  movemtnts  of  iiiflux  and  efflux  may  be  regarded 
as  so  nearly  balancing  each  other  that  they  need  scarcely  be  taken  into 
the  account. 

Tbe  seventh  item,  the  exports  of  specie  for  the  last  eight  yenrs,  fails  to 
agree  with  the  ofiScial  records.  Mr.  Morton  states  the  shipments  at  $477,- 
740,000.  Tbe  revised  returns  of  our  foreign  commerce  recently  issued  by 
the  Director  of  tbe  Bureau  of  Stajtistics,  give  tlie  following  as  the  exports 
of  specie  for  each  of  the  last  eipht  years  : 

Domestic.  Foreign.  Total  specie 

1861 123,^00,000  le.OOO.OtO  $2V»,8C0,000 

3862 t  81»000,C00  5,80(»,000  86,800,000 

1 868 •. . .     60,000,000  8,1 00,000  €8,lUO.000 

1864 100,800,000  4,900,000  105,200,009 

1 866 64,600,0<  0  8,OC0,C0O  67,6f  0,000 

1866 S-^eCO.OCO  8,4(  0.00»)  86,000,000 

1867 66,100,000  6,*00,000  60,900,0(0 

1868 eS.'JOi^OOO  1«. 000,000  98,700,000 

*rota) 1501,100,^00    147,0(0,000    1648,100,0(0 

*  Tbete  flares  diflbr  soi&f  T^hat  from  tho»e  giyen  in  an  eBtlmate  of  the  gold  moTement  In 
ourlBBneof  Jinnarr,  1868 :  tbe  difference  hsviDK  arisen  from  enbitqaent  corrections  In  tbe 
oadal  retorss  made  hj  ibe  Director  of  tbe  Bureau  of  Statistics. 


1869]  WHAT  BASIS  BAYS  WE   FOR  RVSUMPTIOK.  35 

It  thus  appears  that  the  exports  of  foreign  and  domestic  specie,  for 
the  eight  years,  reach  the  real  total  of  $548,100,000,  or  $70,360,000 
shove  Mr.  Morton^s  figures.  There  is  one  item  of  export  of  which  we 
hare  no  record,  viz.,  the  amount  of  specie  sent  out  of  the  Soutbem 
States  during  the  war.  It  is  a  well-known  fact  that  the  exports  of  cotton 
did  not  suffice  to  pay  for  all  the  imports  made  into  that  section ;  but  the 
amouDt  of  the  balance  which  had  to  be  liquidated  in  gold  we  can  bat 
Tsguely  guess.  According  to  the  official  returns,  the  banks  of  the  seceding 
States  held  at  the  outbreak  of  hostilities  about  $25,000,000  of  specie.  It 
would  perhaps  be  quite  safe  to  conclude  that  not  over  $10,000,000  r3* 
maioed  in  the  South  at  the  close  of  the  war,  the  balance  having  been  {eat 
out  of  the  country.  As  an  improvement  upon  Mr,  Morton's  figures,  we 
submit  the  following  statement  of  the  course  of  supply  and  loss  for  the 
last  eight  years,  omitting,  for  reasons  above  stated,  the  circulation  oa  the 
Padfic  Coast  and  the  receipts  by  emigrants  and  loss  by  travelers  : 

Gold  10  Atlantic  States  in  1861 $166,000,000 

Prodnet  of  mines  for  8  yrs  end'g  Jane  Sa,  *68 •  • .    485,000/  00 

Imports  of  specie        do  do  141,900,000 

Total  supply,  8  years $791,900,000 

Eiports  of  specie  last  8  yrs         $518,100,000 

Sen!  from  Boaih  daring  tbe  war ]6,000,000 

TotalloflsinSyears 668.100,000 

Stock  in  1868 $228,800,000 

It  would  thus  appear  that  the  present  stock  of  the  precious  metals  in  the 
Atlantic  States  is  close  upon  $230,000,000.  Tt  is  not  to  be  supposed, 
however,  that  all  this  exists  in  the  form  of  coin,  nor  even  of  coin  and 
bars.  A  certain  portion  of  the  supply  of  gold  and  silver  has  been  taken 
for  commercial  purposes.  That  form  of  consumption  has  been  largely 
increased  within  late  years,  under  the  high  duties  on  jewelry  and  plate, 
and  perhaps  could  not  be  safely  estimated  at  less  than  $10,000,000  per 
aanum.  Assuming  this  to  be  a  full  estimate,  and  deducting  only  $70,- 
000,000  from  the  foregoing  balance,  we  should  have  about  $160,000,000 
as  the  present  stock  of  coin  and  bullion  in  the  Atlantic  States.  Ic  is  true, 
this  result  makes  a  poor  show  against  Mr.  Morton's  $572,000,000,  or 
even  compared  with  his  more  modest  estimate  of  $400,000,000 ;  but  we 
do  not  see  bow  its  substantial  accurao  can  be  impugned.  It  is  not  easy 
to  conceive  where  the  whole  of  even  this  amount  is  held.  The  amount 
in  the  United  States  Treasury  averages  about  $100,000,000,  including 
the  public  deposits ;  the  banks,  national  and  state,  hold  perhaps  $20,000,. 
000  more,  exclusive  of  coin  certificates;  beside  this,  there  is  in  the  bands 
of  deaiera  and  ia  etrculatioa  in  some  of  the  Southern  State)  say  $15,000, 


36  TBI  BUBOir  Aim  oxtabio  cavau  [Jaamarff 

000  more)  and  hoarded  by  timid  people  say  $5,000,000 ;  making  a  total 
of  $140,000,000  of  coin,  to  which  mwt  be  added  about  $5,000,000  for 
ballion ;  which  would  gi^e  a  total  of  the  precious  metab,  in  all  forms,  of 
U45,000,000.  A  vulgar  idea  prevails  that  there  is  somewhere  a  large 
amount  of  gold  secretly  hoarded ;  but  when  it  is  remembered  that  all 
such  hoards  lose  interest  and  afford  no  reasonable  prospect  of  ultimate 
gain,  it  would  be  doing  an  injustice  to  the  common  sense  of  an  acute  and 
business-minded  population  to  suppose  that  these  secretions  exist  to  any- 
tUng  beyond  a  nominal  extent ;  beside,  the  supposition  finds  no  confiima- 
tion  in  common  observation  or  experience.  Upon  the  whole,  then  it 
results  that  wa  have,  in  the  States  where  resumption  has  to  take  effect, 
about  $150,000,000  of  coin  as  the  basis  of  gold  payments.  We  may  here- 
after inquire  how  br  this  fact  comports  with  the  practicability  of  Senator 
Morton's  plan  of  resumption. 


^Vrt^MMAf^ffW^^MtM 


MMrfNAVMM 


Til  lUIOI  AID  OHTABIO  CANAL 

The  Oswego  Commercial  AdverHser  and  Times,  in  referring  to  our 
article  in  the  last  number  of  the  MAoxznni  on  the  Lake  Simcoe  canal, 
states  that  our  doubta  of  the  success  of  the  measure,  based  upon  the  lack 
of  means  in  Canada  for  the  purpose,  arrive  fit>m  a  misapprehension. 
The  canal,  the  Advertiser  and  Times  says,  is  to  be  constructed  by  a  com» 
pany  **  which  does  not  ask  a  cent  from  the  treasury  of  Canada,  directly 
or  indirectly.  The  surveys  and  estimates  have  all  been  made,  and  the 
feasibility  of  the  project  has  been  pronounced  upon  by  the  best  civil 
engineers,  not  only  of  this  country,  but  of  England  also.    The  monej  t< » 

{>ay  for  the  work  has  been  pledged,  half  in  this  country,  and  half  in  Eng- 
and,  depending  upon  the  grant  of  land  by  the  (hitario  Parliament. 
That  granty  th^efore,  is  all  Uiat  now  stands  in  tiie  way  of  the  early  com- 
mencement of  the  work.  How  soon  that  grant  wiU  be  made,  it  is  im« 
posnble  to  say.  The  measure  has  met  with  opposition  in  the  Provincial 
Legislature,  which  for  the  present  has  blockea  its  progress.  But  the 
people  of  the  Province  are  beginning  to  understand  the  advantages  of 
the  measure  to  the  Province,  and  it  seems  probable  that  all  local 
mposition  will  eventually  be  compelled  to  give  way  bdbre  the  pressure 
ot  public  opinion.  Instead  of  being  a  drain  upon  the  wealth  of  the 
Province,  it  would  not  take  a  dollar  from  the  treasury,  but  would  lead 
to  the  expenditure  of  $40,000,000  of  the  capital  of  outsiders  within  the 
Province,  and  stimulate  enterprise,  invite  permanent  setUement,  and  in 
every  reqpect  promote  the  material  prosperity  of  die  country.  Ihe  ten 
million  acres  of  land  granted  would  be  opened  to  settlement,  and  in  tUa 
v^gard  the  increase  of  population  and  prosperity  of  the  Province  would 
be  promoted.  We  regard  it  as  certain  that  the  good  sense  cf  the  people 
of  Ontario  will  ultimately  prevail.  The  opposition  so  far  is  not  more 
formidable  than  should  have  been  expected,  from  experience,  to  a  work 
of  this  magnitude— is  not  so  great  aa  that  which  DeWitt  Clinton  encoun- 
tered for  yean  before  sucoeas  crowned  hie  eflbrts;  and  the  eflEMta  ol  this 


1869] 


VRicn  or  MiBOHAirDXSi.  8f 


vork  mp(m  the  proiperity  atihe  PiOTinoe  of  Ontario  may  be  measured 
■omewbat  b  j  the  effect  tbe  oonstrnctioii  of  the  Erie  Canal  has  had  upon 
the  State  of  New  York,  raising  it  suddenly  to  Uie  proud  position  of  the 
Empire  State  of  the  Union." 


^*'^*V^*4^*'^i««W«»«*«*«tf^M«*«««M***'^*M 


pucBi  OF  URcuimin. 

la  tke  table  wUdi  follows,  a  oomparison  is  made  of  the  prices  of  the  prindpal 
articiesof  oooinierce  in  the  New  x(xk  market  about  the  first  of  January  in  the 
psst  eight  years.  This  eomparisou  is  extremely  interesUDg,  as  it  shows  the 
eoone  of  priees  at  the  several  periods,  from  the  oommenoement  of  the  war  to  the 
period  of  greatest  inflation  and  tbenee  down  to  the  present  time.  As  the  peon* 
nsr  Tslae  of  this  statement  is  seen  at  a  gknce,  any  ezteaded  comment  upon  it 
ii  vnneeessaiy. 

IStt.  1888.  1804.  186B.  188S.  188T«  18861  1886. 

$c    ae    ac    ac    ae    %c   ac$e. 

Albll.pots leSlks S«     8S5     850   lIlS     900     8»     8«l     7891 

_       PmOM SSS     8«     918   1800   UOO   UOO   1060     989 


Wbeitioar, State Ez.¥b1 SOO     805     700   1000  815  UOO  1000     708 

io   tz-We«t.*8LLo«IS 700     8T5   UOO   1500  1400   1700  1800   ISOO 

UyeSow.GeoMee 887)^445     886     908  610     786  815     700 

OocBmMd,JeiMf SOO     400     586     880  415     600  616     600 

Wk0Bt,wklt8Mlca.buh 160     158     188     970  975     306  890     980 

Okttift, SpiiDf  Ifo.  1 180     188     148     999  180     945  945     170 

^eTwartam...  .Imih 88       06     180     176  106     195  175     161 

0Mi,8tata 49        71        9S     106  89        89  87        78 

Oita,  Western 498098     109  89646477 

ORB,Wetten]iilzed 64        89     180     190  96     1 19  141     110 

OottOB,ttld.  opleod...* 86itf     68^     89     190  68        84  16        97 

lOd.  hew  Oiieeiit 88        88j|(     ..     191  59       86  19H    ^ 

Flth^diyeod oU 860     460     6T0     900  988     610  660     680 

VMt,Iejeriaiiliie....ta 890     860     490     696  460     885  880     866 

<Mnuie 1^ 9       18       15       91  16       18  19k     10| 

Hij,  ikippliia lOOlbe TTJi     85     145     166  75     196  190        90 

Bflpt   » 9098866080008090 

-Seotdiliia (en 9800   8890   aOO  8800  6990   6008  8800   4100 

[iaklHurB 0700   8600   90 00  190 OJ  180 00  116 OJ  8500   8700 

lanpSgHo.l 60  61        49  80   4100 

iilfat perM ..«^....  196     146     160     940  500     896  800     81t| 

Ln4--e8eiilBh ten 700     800   1060   1600  688     700  660     6374 

.iUeee »•  719^  80J    1060    10  00  

Leetker-lMBloclc,iOle» 90^    97       80       49  88       89  96itf    98 

.Oak do 98884959  81        878840 

IiM.eoBi.Bocklend.blil 85       86     186     116  ITO     170  160     188 

LllBon,  bimiidr.  eoK*c.fal 400     696     610   16  00  600     600  660     800 

ioaettl€whlake7....do 90X     89       94     994  997X988  986        97 

]felaeMe,N.  Orleene...do 68       65       70     148  115       98  85       76 

Hefilatoree  - 

Credo  terpentine.... bbl lOOO     900     600  876     888 

|plrtUtorpentlne...KAl 147^980     905     910  106       87  60       60 

CbBoiOQRHin bbl 600    1800   8900   9108  660     600  800     945 

OUe-Orade  whale ge< 48        81     110     148  180     ISO  70     105 

C^ede^ppone 140     176     100     913  960     980  916     175 

UoMod • 86     196     147     160  14S     184  108        88 

PetroleeB.  erade.  ..sel. 96       81^    61  40       18  lOW .... 

ndli>edlab*d.S.W..sel 47X    46)^    78  88       80  94     .... 


FortcoMmeen bUe .1900 

Fatk,prtme • •.....•«..  860 

Bee^piiiiiQinieai 6e0 

Meteztn  mese 1100 

Becrhaau,  extim 1460 

Hum.  pickled Iba 6 

^boeldarp,  ptckled 4% 

UpI,  Wetteni  8^ 

Intter,  prime  Weiteni 15 

Better,  priiee  8Ute 19 

rbgeae.  prime  liictoiy 7 

BiM.  prime 100  Ibg 700 

Bia,Uferpool,  sroond.  .ek 86 

Jw.ygl^Sne,  Aibtone 170 

food".'.l!/...!!!!IHl.l"..*.!I.    8]^ 

'  herde lOJK 

Weol.OkioSeee^do*Ue«r.II!"'.!'.'.'l'..'.    80^ 
gold Ptt 


£«Stt,Cebe,f 

Sjj^reSSlf 


E  OT  HZW  TOHE  STOCK  ExcHAMOB  FOR  1666.  [i/antHiry, 


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1369]     oouuE  or  %sw  tobk  stock  xzohahob  jok  1600. ' 


gp8  := 


i  :8  :?Si:S  =  ifSS^S  i^ 


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tINOB  OP  GOTKtRIBIlT  SBGUUTIBS,  INS. 

The  foUowing  table  will  show  the  monthly  range  of  6ot- 
ernment  securitiesy  as  represented  by  daily  sales  at  the  New 
York  Stock  Exchange  Board,  during  the  year  1868 : 

<-«*■,  1S81^  » •*■  O^SO  y*n).  CoapoD .  B*i,  KMO,  7-90. 

CoQp  Beg.  188S.    1864.  18«ft.  new.  l^n.  2868. 7*n  U*8ii.  tdsr 

JsnuAry— 

Pint....:.  108X  VX^  106SC    l^M  IM       l'^4y    IMX    ....      lOS       IMK 

Lowest...  liBK  IflSJi  l(rr»    10514  106       10IJ4    IMS    ....      101^    lOiS 

Higher ..  IIIH  HIK  i:iM    Vn%  11034    In6l4    10iS)4    ....     104^    10S)4 

Laft  ..       \\\%  lllX  11114    lOBK  109JI4    Vn%    VHH    ....      lw4J^    lOTjtf 

Petan'y— 

First .....  11194  11114  lUJi    10614  110       107%   106       ....      10414    lOTV 

lowest.  .  1109  11014  110       107K  106)4    106JI4    1  «X    ....      10434    lOsS 

Hlffhest ..  lltK  lllS  llli4    106%  UOli    1  8       108J4    ....      106)4    108 

Last 11014  11014  110       Vn%  K«%    106%    106%    ....      104%    106% 

March— 

Flnt HI  111%  110%  107%  ir8|4  106%  107  ....  101%  106% 

Lowert...  110%  110%  106%  107%  18  166%  106%  ....  100%  106% 

Hifheet ..  111%  111%  110%  108%  100  107)4  107%  ....  101%  106K 

Li«t HI  110%  106%  107%  166%  106%  107  ....  10u%  106% 

April— 

Flrat Ill  111%  100%  107%  107%  106%  107  ...."  lOOX  105] 

Lowest...  Ill  111  100%  107%  107%  106!%  106%  ....|  100^  1065 

Highest..  US%  113%  116%  110%  HI  106  100%  ....j  106%  1(173 

List 118%  116%  116%  110%  m  100  109%  ....|  13l|%  107% 

First!.?...  118%    lis       106%    106%    107       100      100%    ....      106%    107% 


Lowest...  118%  113  107%  106%  106%  108%  100%  ....  106  107% 
Highest..  115%  110%  111%  109%  100%  111%  llf  ....  105%  109% 
Last 115%    116%    111%    106%    106%    111%    116       ....      105%    109% 


Jane- 
First 116%  111%  119%  110%  110%  118  118%  100%  106%  100% 

Lowest...  116%  111%  111%  lOOK  110  119%  U9%  100%  106%  1  0% 

Highest..  118  118%  118%  111%  111%  114%  114%  110%  107%  110% 

Last 117%  119%  118%  110%  111%  116%  114  110  107%  110 

July— 

First. 118%  119%  119%  U0%  110%  106  106%  106%  107  100% 

Lowest...  118  119%  119%  UO  110%  106  lOBK  108%  107  108% 

Highest ..  116%  116%  114%  111%  11994  100%  100%  106%  lQri%  100% 

Last 115%  115%  114%  111%  119%  108%  106%  100%  108%  106% 


.... 
.... 

.... 
.... 
.... 

.... 


First. 116%  115%  118%  111%  119%  ir8%  100  109  106% 

Lowest...  118%  118  118%  10h%  110%  107%  107%  107%  106% 

Highest  ..  116  116%  UO  111%  119%  109%  100%  l(i9%  109% 

Laat U4%  U4  114  100%  111%  106%  106  10894  100 

Bept— 

First...  ..  114%  118%  118%  109%  111%  106  107%  106%  10S% 

Lowest...  119%  118%  11994  1  0%  109%  107%  107%  1U^%  101% 

Highest ..  114%  114  115%  110%  111%  109%  100J4  10952  1(»% 

Last 119%  118%  119%  109%  106%  107%  106  1U694  104% 

October- 
First 118  119%  119%  110  100%  108%  108%  108%  101%      ...* 

Lowest...  118  119%  119%  110  100%  1  9%  106)4  108^4  101%      .••• 

Highest..  116%  115  114%  119%  119%  1119b  111%  119  106)4     ..•• 

Last 115%  114  113)4  111%  119%  107%  111)4  111%  106% 

Not— 

First 115%  119  100%  106  107%  110)4  110)4  110%  106 

Lowest...  119%  119  1069(  106  105)4  1<'8%  18%  10s)4  101 

Highest    .  115%  116  113%  1(18%  106%  110^  111%  110^4  1U0% 

Last 116  114%  1U%  107%  107)4  110%  110%  110%  106 


... » 

.... 
.... 
.... 


.... 


. . .  < 


First 114%  110%  110%  107%  107%  110  110)4  110%  106%      .... 

Lowest...  114%  106%  110  106%  107%  10914  10R%  110  106 

Highest ..  115  110%  11194  107%  106%  11094  HI  HI  106% 

Last 111%  100  11%  107%  107%  HO)i  111%  111%  109% 

TlAB  1868— 

First 1069(  108%  106%  10^%  106  104%  104)4  10^%  109       104% 

Lowest...  109)r  106%  106)(  1<)6%  105%  101)4  104)4  107%  101%    10t)4 

Hghest..  118  115%  115%  11994  119%  114)4  114%  11:1  1(19%    110% 

Last 114%  100  110%  107%  107%  110%  111%  111%  109%    108% 


1869|  BPBOIAL  BXPORT   ON   TEX   SBTXNUB.  59 

IPSCIil  BKPORT  OR  TIE  BETENUS. 

The  third  aimQal  report  of  Mr.  David  A.  Wells,  the  Special  Commie- 
flooer  of  Revenae,   is    a  valuable  docnment.     It  deserves,  and  will, 
no  doabt,  receive  more  attention  from  Congress  than  has  been  practically 
accorded  to  Mr.  Wells*  previous  reports.    A  large  part  of  this  statistical 
doGument  on  the  revenue  is  taken  up  with  discussions  about  national  de- 
velopment, irredeemable  currency,  the    growth  of   wealth,  the  future 
financial  polioy,  the  refunding  of  the  debt,  the  legalizing  of  coin  contracts 
ttd  the  desirableness  of  allowing  the  banks  to  issue  more  notes  than  the 
3O0  millions  now  allowed  by  law.    The  introduction  of  such  extraneous 
matters  into  a  revenue  report,  either  extends  it  to  an  inordinate  length  i 
or  else  leads,  as  in  the  present  case,  to  the  omission  and  crowding  out 
of  &ct8  and  evidence  which  are  of  paramount  importance. 

The  two  great  topics  of  Mr.  Wells'  report — ^the  tariff  and  the  internal 
revenue  system — are  treated  with  considerable  ability.  As  to  the  first 
be  protests  against  any  further  general  increase  of  the  customs  duties. 
He  woald  also  enlarge  the  free  list,  reduce  certain  duties  and  increase  a 
few  others,  with  a  view  to  increase  the  revenue.  He  would  also  convert 
the  ad  valorem  rates  into  specific  duties,  and  he  would  protect  home  indus- 
try by  lightening  the  duties  on  imported  material  and  appliance  used  in 
oar  manafactures. 

The  general  views  of  Mr.  Wells  on  the  tariff  are  worthy  of  examination, 
sod  not  the  less  ao  because  they  are  more  or  less  distasteful  in  both 
the  hostile  camps  of  protection  and  free  trade.  The  nation  during  the 
psst  few  years  has  rapidly  learned  to  appreciate  the  effect  of  a  universal 
and  indiscriminate  system  of  internal  taxation  in  the  enhancement  of  prices 
and  in  the  restriction  of  production  ;  but  Mr.  Wells  declares  the  inevitable 
tendency  which  the  adoption  of  a  similar  system  of  taxation  under  the  tariff 
has  to  produce  result?  corresponding  and  analogous.  He  illustrates  his 
assertion  by  a  reference  to  the  fact  that  we  have  ruined  the  ship-build- 
ing  trade  by  excessive  taxation,  so  that  now  ^  we  can  neither  build,  buy 
nor  sell  an  American  vessel."  We  cannot  but  think  that  Mr.  Wells  has 
somewhat  overdrawn  his  picture,  but  the  reasons  he  gives  for  the  decadence 
of  this  branch  of  our  industrial  enterprises  merit  careful  investigation,  for 
they  affect  other  departments  of  trade  besides  that  of  ship-building. 
These  reasons  are  as  follows : 

"  While  prolectiDg  the  ihips,  we  have  also  protected  to  DPariy  an  cqtial  degree 
the  separate  ooostiuienta  that  enter  ioto  the  cooslruction  of  ships,  viz.,  the  timber, 
the  iroo,  the  copper,  tbe  cordage  and  the  canvass  ;  and  the  e  two  ageuci^s  hnve  so 
fir  iSQtraliced  aod  eoontarbelanoed  earh  other  that  neither  party,  within  this  par- 
tiolar  sphere  of  ioduatry,  baa  been  benefited ;  the  sbipa  not  having  been  ba.lt,  or  the 
eDDfti.'aeola  of  tbeir  construeUoo  created  or  applied,  while  the  co  nmunitj  at  large. 


60  BPEOiAL  KSPORT  ov  THS  KKTivui.  [January^ 

whoBB  ioterest  it  is  that  all  these  hrancfaee  of  industry  ehonid  proeper,  has  likewise 
received  do  benefit,  bat  rather  detriment  from  the  snspeosioD  or  diTersioo  of  labor 
and  capital  from  its  preTioos  employments.  The  same  system,  moreover,  of  checks 
and  balaoces  growing  ont  of  the  indiscriminate  and  nniversal  taxation  nnder  the 
tariff  which  we  have  thns  shown  to  exist  i  t  ship-building,  has  been  also  so  far  extended 
to  every  other  branch  of  production,  that  if  ships  aTailable  for  foreign  trade  were 
tcday  furnished  to  hand,  without  cost,  their  use  must  be  exceedingly  limited,  for 
the  reason  that  the  high  prices  of  all  domestic  commodities  would  em>ctaally  pre- 
vent that  exchange  with  foreign  oountrii^s  which  in  itself  ceostitotes  commerce." 

As  the  tariff  now  standa,  Mr.  Wells  believes  that  it  is  injurious  and  de- 
structive, and  denies  that  it  affords  to  American  iodustry  that  stimulaa 
and  protection  which  are  claimed  as  its  chief  merit  He  opposea,  how- 
ever, the  advances  asked  in  the  bills  now  before  Congress,  because  in  bis 
opinion  they  would  not  only  aggravate  the  difficulties  of  the  country,  and 
impair  the  reveones  of  the  Government  but  would  even  hinder  the  return 
to  specie  payments.  In  behalf  of  these  opinions  Mr.  Wells  appeals  to 
the  true  friends  of  American  industry  for  countenance  and  support,  pie- 
dieting  that  if  unnecessary  and  iniquitous  burdens  of  taxation  under  the 
tariff  continue  to  be  laid  upon  the  people,  the  day  is  not  far  distant  when 
a  reaction  of  public  sentiment  will  compel  either  a  sweeping  reduction 
of  duties,  or  induce  through  agitation  such  an  unstability  in  legislation 
as  will  in  itself  prove  most  injurious  and  destructive.  It  is  to  be  re- 
gretted that  Mr.  Wells  has  not  entered  upon  some  speci6c  details  of  a 
tariff  revision,  but  the  precise  changes  required  in  his  judgment  he  promises 
to  lay  down  in  an  additional  report,  or  personally  to  the  Finance  Commit- 
tees of  Congress.  As  a  bill  proposing  a  change  in  the  existing  ware- 
house system  is  now  pending  before  Congress,  some  recommendations  in 
respect  to  this  system  are  given  in  an  a;>pendix. 

Of  the  internal  revenue  system,  Mr.  Wells  gives  a  much  better  ac- 
count Hi  shews  that  since  the  taxes  began  to  be  levied,  in  1863,  more 
than  1,100  millions  of  dollars  have  been  raised,  and  that  ^  so  long  as  the 
war  continued  and  the  demand  for  manufactured  products — owing  to  the 
enormous  consumption  of  the  army  and  the  withdrawal  of  labor  from  its 
accustomed  avocations — was  fully  equal  to,  or  in  excees  of  supply,  so  long 
taxation  under  the  internal  revenue  was  not  regarded  by  the  majority  of 
producers  as  at  all  oppressive ;  but  on  the  contrary,  by  reckoning  tax- 
ation in  common  with  labor  and  material  as  an  element  of  cost,  and 
profit  as  a  per  centum  on  the  whole,  it  was  very  generally  the  case  that 
the  aggregate  profit  of  the  producer  was  actually  enhanced.''  With 
the  c!ose,  of  the  war,  ho'^ever,  a  change  came.  The  wheels  of  industry 
were  clogged  and  the  productive  machinery  of  the  country  was  deranged 
by  the  tax  burden  which  had  previ  ^usly  been  scarcely  felt.  Congress  in- 
terposed. Vexations,  unproductive  and  needless  taxes  were  taken  off^  to 
the  amount  of  at  least  170  millions  a  year.    We  have  now  so  perfected 


1669]  BPXOIAL  AlPOBT  09  TRS  BSYXNtTS.  61 

our  sjstem,  that,  as  Mr.  Wells  jastlj  observes,  ^  it  approximates  eloselj 
to  Uiat  whioh  the  experieDce  of  more  than  three  quarters  of  a  century 
fa  England  has  shown  capable  of  yielding  the  most  revenue  at  the  least 
laorifio  of  the  productive  forces  of  the  people. 

As  to  the  Improvements  of  which  our  internal  revenue  system  is 
cspable,  Mr.  Well's  statements  are  as  vague  and  general  as  those  about 
the  tariC  He  makes  the  remark  that  but  little  legislation  is  required  to 
liill  fortber  periect  the  system.  It  should  repeal  the  taxes  now  levied 
upon  telegraph  and  express  companies ;  upon  the  gross  receipts  of  rail- 
rosds,  steamboats,  and  other  common  carriers  for  the  transportation 
of  passengers ;  and  the  percentage  taxes  on  the  sales  of  merchandise ; 
the  gross  receipts  from  all  of  which  is  less  than  one-half  the  annual 
expcDditures  during  the  last  two  fiscal  years  for  the  equalization  of 
boanties.  When  this  shall  have  been  accomplished,  he  says  that  the 
entire  internal  revenue  system  will  have  been  made  wholly  subordinate 
to  the  more  important  end  of  creating  national  wealth ;  and  under  it 
DO  direct  obstacle  whatever  will  be  imposed  by  the  Grovernment,  which 
cso  prevent  the  domestic  producer  from  placing  his  product  upon  the 
msrket  «t  the  lowest  possible  cost 

As  to  the  effect  produced  on  prices  by  repealing  taxation  Mr.  Wells 
tells  US  that  **  thus  fiir  the  abatement  of  prices  consequent  upon   the 
laige  annual  reduction  of  taxes  has  not  been  what  was  anticipated,  or 
what  the  large  amount  of   revenue  abandoned  would  seem  to  have 
warranted.    la  the  case  of  not  a  few  articles,  as  pig  iron,  manufactured 
lomber  and  salt,  tlie  prices  since  the  removal  of  taxation  have  actually  ad- 
vanced, while  in  other  instances,  as  in  the  case  of  agricultural  implements, 
lewtng-machines,  hoop-skirts,  manu&ctnrea  of  silk,  newpapers,  and,  in  fact 
most  articles  which  are  the  products  of  monopolies  created  by  patents^ 
established  custom  or  other  circumstances,  the  repeal  of  the  internal  tax, 
tbroogh  the  maintenance  of  former  price,  has  been  only  equivalent  to 
legislating  a  bounty  into  the  pockets  of  the  producer.**    This  confirms  the 
general  remark  which  has  often  been  made  by  European  political  econo- 
mists that  prices  adjust  themselves  slowly  and  with  diflBculty  to  changes 
wUeh  taxation  introduces  into  the  cost  of  production,  but  that  generally 
tie  advance  of  prices  when  a  new  tax  is  imposed  is  instantaneous,  while 
tbe&U  of  prices  from  the  repeal  of  the  tax  is  slower,  being  forced  down 
^  the  law  of  demand  and  supply. 


^M«W*'*'^M^^*^M*M^*^*^tfk^h^«^*' 


02  TAX   KXW  TIAB  XV   XUROPI.  [JofltMlfyi 

TBB  RBW  TBit  IK  BUIOPB. 

The  year  1869  opens  to  Europe  the  prospect,  says  the  London  Timu^ 
of  a  ^  moBt  precarioiia  peace."  These  words  from  the  organ  of  the  com- 
mercial classes  of  Great  Britidn,  are,  to  be  sure,  less  significant  than 
the  famous  phrases  addressed  by  the  Emperor  of  the  French  to  the 
Austrian  Ambassador,  at  the  Tuilleries,  on  New  Year's  Day,  in  I860. 
Yet  they  are  not  to  be  lightly  received.  For,  though  a  British  journal, 
unlike  a  French  emperor,  can  neither  make  nor  break  the  peace  whereof 
it  speaks,  there  are  so  many  threatening  features  in  the  present  aspect 
of  European  affairs,  that  the  Times  could  hardly  boast  very  loudly  of  its 
prophetic  wisdom  were  the  summer  of  1869  to  justify,  in  a  ^  blood*red 
blossom  of  war,**  the  fears  with  which  it  tempers  the  holiday  rejoicings 
of  the  winter. 

The  perils  which  overcast  the  immediate  future  of  the  world's  peace 
may  be  divided  into  two  great  classes :  the  perils  tmmtfi^ift^  in  oertaio 
actual  political  crises,  and  the  perils  eonttn^ent  upon  certain  highly 
possible  political  accidents.  Of  the  first  class,  the  most  conspicuous  where 
in  the  political  crisis  through  which  Spain  u  now  passing,  and  in  the  issue 
which  has  at  last'  been  boldly  taken  by  the  Turkish  government  with 
Greece.  Of  the  second  class,  the  most  important  attach  themselves 
to  the  political  situation  in  France  and  in  Germany,  Let  us  consider 
each  class  in  its  turn. 

The  Spanish  Revolution,  which  promised  so  much  at  its  outset,  has 
thus  far  failed  to  ke^p  its  promise.  The  dynasty  of  the  Bourbons  has 
indeed  been  overthrown,  and  the  Spanish  people  have  been  reatored  to  a 
sort  of  control  over  their  own  affiurs.  But  that  contrd  is  after  all  im- 
perfect; nor  is  there  much  in  the  history  of  the  last  two  months  to 
encourage  the  belief  that  were  it  as  complete  as  it  is  incomplete,  the 
Spanish  people  would  be  found  capable  of  administering  their  own 
affisirs  as  judidously  or  as  successfully  as  many  sanguine  loTera  of 
popular  government  were  led  by  the  events  of  last  fall  to  anticipate. 
The  protracted  interregnum  of  Uie  Provisional  Government  haa  only 
resulted,  so  far,  in  exasperaUng  what  b^an  as  a  local  rising  in 
the  most  important  of  the  Spanish  colonies,  into  something  very  like  a 
genuine  revolution,  and  in  damaging  the  lepublican  cause  by  the  opportn* 
niUes  it  has  given  to  violent  and  fanatical  men  of  identifying  the  Beptb- 
lican  party  in  Spain  with  aimless  and  disheartening  ontbreaks  of  popniar 
violence.  WheUier  this  nnsatisfactory  state  of  afiairs  in  Spain  has  been 
connived  at  or  instigated  by  the  Government  of  France,  cannot  be  posi* 
Uvely  known.  But  it  is  certain  that  the  Emperor  Napoleon  has  gained 
by  it|  at  least  in  respect  to  the  strength  of  the  hold  which  hia  system  haa 


1869]  nn  hxw  txab  iv  bvropx.  .63 

opon  the  Fre&eh  people^  in  virtue  of  the  fact  that  it  is  their  only  real 

iltenative  fiom  a  French  Republic    It  is  clear  that  Spain  would  long 

ere  this  have  been  settled   upon  a  practicable  basis  of  constitutional 

oonarsfaj,  had  it  not  been  for  the  difficulty  of  finding  a  satisfactory 

monsreh.    Now  the  French  people  are  perfectly  well  aware  that  in  this 

particular  a  revolution  would  leave  France  no  better  off  than  Spain  now 

is.   Neither  the  pretender  of  the  elder  French  line,  Henry  Y.,  commonly 

called  the  Count  of  Ohambord,  nor  the  Princes  of  the  younger  line  of 

Means  can  be  said  to  be  any  more  popular  with  the  people  of  France, 

than  Don  Cartos,  Don  Sebastian,  Don  Ferdinand,  the  Duke  of  Montpen* 

sier,  or  the  Duke  of  Aosta  have  proved  to  be  with  the  people  of  Spain. 

It  may  rery  well  have  seemed  worth  while  to  Napoleon  III.  to  keep 

Spain  for  a  few  months  in  a  condition  x>f  dangerous  effervescence,  for  the 

purpose  of  impressing  this  lesson  by  example  upon  his  own  subjects.    Be 

this  as  it  may,  however,  there  is  a  point  beyond  which  it  will  neither  be 

ssfe  for  Spain,  for  France  nor  for  Burope  that  Spain  should  be  allowed  to 

go  in  the  process  of  fermentation.    That  point,  we  judge,  is  nearly  reached. 

And  it  is  not  by  any  means  improbable   that  upon   the  failure  of  the 

Spanish  pUbUeitum  (soon  now  to  be  taken)  to  settle  the  dynastic  ques- 

don  for  Spain,  a  system  modelled  upon  the  Napoleonic  system,  with 

General  Prim  at  its  head,  may  be  sprung  and  fixed  upon  that  country. 

This  lystem  might  not  and  probably  would  not  carry  with  it  any  guar- 

satee  of  permanency  for  itself;  but  it  would  at  least  remove  the  Spanish 

qaestion  for  the  time  from  the  list  of  the  active  disturbing  forces  in 

Eoropean  politios.    The  st^'ength  of  the  Spanish  army,  and  its  apparent 

fidelity   to    ita   leaders    conspires  with    the  practical  disiutogration  of 

Spsnish  political  parties,  and  the  compara^ve  weakness  in  Spain  of  those 

great  material  and  social  in  teres  ta  which  are  so    powerful  in   more 

thoroughly  modemused  countries,  to  favor  the  success  of  any  well-calcu- 

htsd  step  towards  the  establishment  of  such  a  system.    We  may  there- 

tore  oondade  the  ^Spanish  question  to  be  less  really  and  immediately 

^sngerous  to  the  peace  of  Europe  than  it  might  from  a  superficial  ob- 

ier?ation  of  the  state  of  affairs  abroad  be  inferred  to  be. 

The  same  thing,  we  are  convinced,  is  true  of  the  Eastern  question,  in 
its  jvesent  shape.  The  Atlantic  Cable  has  throbbed  for  weeks  past 
with  warlike  muttering  from  the  Levant  The  names  of  Sfra,  of  Hobart 
Psiha,  and  of  the  Greek  steamer  Enosis,  have  been  reiterated  in  the 
cotomns  of  the  dmly  preas  till  they  have  become  at  once  as  familiar  to 
the  eyes,  aa  formidabie  to  the  fancy,  and  as  vague  of  meaning  to  the 
Blinds  of  most  people  as  once  were  the  names  of  Duppel,  and  Schleswig- 
Hoktein,  and  the  Duke  of  Aoguatenbonrg.  Once  more,  too,  we  have  had 
the  Emperor  Napoleon  coming  forward  with  his  political  panacea  of  a 


64  Tfix  siEW  T81B  nr  SUEOPK.  [/amiaiy, 

European  conference;  and  these  signs  and  wonders  in  the  air  are  in- 
terpreted not  unnaturally  to  signify  the  near  approach  of  that  long-dreaded 
grapple  of  the  Moslem  with  the  Christian  in  the  East  from  which  the 
politicians  and  the  statesmen  of  the  world  have  so  long  looked  for  the 
**  beginning  of  the  end"  of  the  so-called  **  balance  of  power  "  in  the  Old 
World, 

But  the  truth  is,  we  think,  that  the  decisive  declaration  by  Turkey  of 
her  determination  to  exact  of  Oreece  a  strict  fulfilment  of  her  intem»> 
tional  duties,  even  at  the  price  of  war,  is  more  likely  to  abate  than  it  is 
to  aggravate  the  political  daggers  of  the  Eastern  question. 

Of  all  the  greater  European  powers,  Austria  alone  is  just  now  in  a 
condition  to  make  the  notion  of  a  war  on  the  Eastern  question  not 
absolutely  disagreeable  to  her.  And  this  not  because  Austria  either 
desires  war  really,  or  feels  herself  equal  to  enduring  a  great  war  without 
a  very  serious  strain  upon  her  resources,  but  because  Austria  foresees 
clearly  tho  coming  of  a  great  collision  between  herself  and  Russia  in 
the  east  of  Europe,  and,  foreseeing  this  collision,  may  reasonably  think 
the  present  as  favorable  a  moment  as  she  is  likely  in  a  long  time  to  come 
upon,  for  confronting  the  peril.  For  at  this  moment  Russia,  for  grave 
financial  and  social  reasons,  is  greatly  averse  firom  war ;  nor  can  either 
of  the  other  great  powers  be  said  to  desire  war.  Prussia,  upon  which 
Russia  leans  as  her  ally,  is  just  now  in  such  a  crisis  of  her  German  rela- 
tions as  would  make  it  particularly  vexatious  for  her  to  find  herself 
draccged  into  a  conflict  in  behalf  of  Russian  aggrandizement  against  Aus* 
trian  consolidation.  England  is  too  much  intent  upon  strengthening  her 
Indian  frontiers  towards  the  North,  where,  fi^m  her  Himalayan  fortresses, 
she  descries  afar  off  the  advancing  cross  of  St.  Andrew  and  the  green  uni- 
forms which  fought  at  the  Alma  and  at  Inkermann,  to  be  willing  to  see 
herself  compelled  to  open  the  battle  prematurely  on  the  Levant  and  the 
Euxine  also.  France  has  the  Suez  canal  on  her  hands,  and  the  growing 
Prussian  ascendancy  to  watch.  Were  the  East  to  get  into  a  blaze  now, 
Austria  might  hope  for  something  at  least  in  the  way  of  a  reinforcement 
of  her  exposed  position  on  the  Lower  Danube ;  and  Austria,  therefore, 
may  be  reasonably  supposed  to  have  stimulated  Turkey  to  the  energetic 
coarse  which  has  just  been  taken  by  the  Sublime  Porte.  But  it  will 
depend  upon  the  other  great  powers  whether  the  assertion  of  her 
rights  by  Turkey,  backed  by  Austria,  shall  or  shall  not  lead  to  a  real 
conflict  with  Greece,  and  through  that  to  a  general  European  war.  We 
have  already  shown  why  it  is  extremely  unlikely  that  these  other  great 
powers,  no  matter  what  may  be  their  feelings  for  or  against  either 
Turkey  or  Oreece,  should  suffer  such  results  to  follow.  And  as  such 
results  can  only  be  averted  by  a  practical  diplomatic  defeat  of  the  Oreeksi 


IWS]  TBI  VXW  TOSS  OXXTRAL  DXTIOnrD.  05 

ve  xaxj  expect  to  aee  snch  a  defeat  The  aspiratioDs  of  the  **  Hellenes" 
win  be  once  more  thwarted.  The  Cretan  inBurrectioD|  extinguished  in 
Crete,  will  not  be  snffered  to  be  rekindled  elsewhere. 

If  the  actual  political  difficulties  of  the  hour  in  Europe  then  are  not 
so  foil  of  peril  as  the  Times  would  have  us  believe  them  to  be,  can  ^e 
same  thing  be  said  of  the  political  eonUngencies  of  the  year  in  Europe  f 

Hardly,  we  think.  And  this,  in  the  6r8t  place,  for  the  simple  reason 
that  they  are  contingencies.  It  may  happen  at  any  time  that  the  Emperor 
of  the  French,  now  past  his  sixtieth  year,  sb  uld  cease  to  live.  It  is  not 
very  likely  that  while  he  lives  he  should  caase  to  reign.  But  he  ceasing 
to  live,  who  can  forecast  the  future  of  France,  or  of  Europe  f  It  has  be- 
come fiishionable  of  late  to  sneer  at  the  political  skill  and  genias  of 
Napoleon  IIL  But  take  him  out  of  the  way,  and  who  will  not  do 
homage,  if  it  be  only  the- reluctant  homage  of  fear  and  dismay,  to  the 
great  quslitieB  which  have  enabled  him  so  long  to  master  the  French 
people  and  so  brilliantly  to  illustrate  the  renown  of  France  f  In  like 
mauner,  were  Bismarck  to  be  removed  suddenly  from  his  unfinished  task 
of  the  unification  of  Germany  nothing  is  more  likely  than  that  the  French 
Government  should  avail  itself  of  the  opportunity  to  press  upon  and  inter- 
rupt that  task.    This  could  not  be  done  without  setting  Europe  on  fire. 

Tioslly,  then,  we  find  in  the  chances  upon  which  political  confusion 
in  Earope  may  supervene  during  the  year  1869,  a  much  more  adequate 
ground  for  the  justification  of  the  alarm  with  which  large  numbers  of 
practical  people  are  looking  forward  to  the  coming  twelvemonth,  than  is 
to  be  found  in  the  actual  condition  either  of  Spain  or  of  the  Levantine 
eoBDtties. 


*M«**W% 


THB  HEW  TOEI  CENTRAL  DITIDND. 

Far  some  time  past  the  stockholders  of  the  New  York  Central  Rail- 

rosd  Company  have  been  promised  a  division  of  a  certain  large  surplus 

of  earnings  said  to  exist  in  the  hands  of  the  Company.     In  three  or 

four  instanoes  this  promisci  coming   apparently  from  the  management, 

ksi  been  made  the  occasion  of  extensive  speculations,  under  which  the 

itod  has  finctuated  between  115   and  135 ;  and  at  last  the  dividend  has 

come,  exceeding  the  most  sanguine  expectations.    Upon  all  outstanding 

atock,  the  holders  receive  a  certificate  equivalent  to  eighty  per  cent  of 

the  amount  of  their  shares,  and  four  per  cent  in  cash  on  the  stock  and 

<m  the  certificates,  making  $7  20  in  cash,  and  eighty  per  cent  in  scrip. 

The  dividend  was  made,  with  very   singular  precipitance,  near  midnight 

of  Saturday  last,  and  at  the  residence  of  one  of  the  city  directorp.    If  we 

may  believe  all  that  is   stated  in  well-informed   circles,  some  millions  of 

fti»  scrip  had  been  prepared  in  anticipation   of  the  action  of  th    Board, 

•nd  wsa  taken  by  a  leading  director  on  account  of  himself  and  friends. 


66  THX  NKW  TORK  CENTRAL  DZTIDXND.  fc/ailttary, 

iinniediatelj  upon  the  passage  of  the  resolutions,  to  evade^  it  is  presumed, 
any  possible  legal  interruptions.  Before  daylight  on  Monday  an  injunc- 
tion was  served  upon  the  Treasurer  of  the  Company,  restraining  him 
from  issuing  the  certificates ;  but  the  Treasurer  is  understood  to  have  dis- 
regarded the  prohibition  upon  the  ground  that  the  documents  were  being 
issued  by  the  Union  Trust  Company,  a  function  which  we  have  reason  to 
believe  that  Company  disclaims.  However  this  may  be,  the  certificates 
have  since  been  in  process  of  issue  from  the  hands  of  the  Treasurer.  An 
injunction  was  also  issued  a  short  time  previous  to  the  directors'  meeting, 
restraining  the  direction  from  making  any  dividends  upon  the  stock 
issued  against  convertible  bonds ;  and  the  officers  of  the  Company  state 
that  they  intend  to  respect  that  order  so  far  as  to  issue  the  scrip  only 
against  about  $23,000,000  of  ntock,  until  the  injunction  is  settled.  The 
scrip  declares  the  holders  to  be  entitled  to  the  same  dividends  as  may  be 
paid  upon  the  share  capital,  and  conveys  a  claim  to  an  equivalent  amount 
of  stock  upon  the  Company  obtaining  authorization  to  issue  it.  In 
some  quarters  serious  doubts  are  expressed  as  to  the  validity  of  this  very 
peculiar  form  of  scrip ;  the  directors,  we  have  reason  to  believe,  however, 
have  taken  the  best  legal  advice  to  assure  themselves  upon  that  point. 

The  scrip  is  said  by  the  Board  to  represent  surplus  earLings  invested  in 
construction  and  real  estate  and  the  general  appreciation  of  the  property 
of  the  company.  This  pretense  is  the  most  marvellous  feature  of  this 
extraordinary  proceeding.  It  is  very  unexpected  information  to  the  public 
that  the  Central  Company  has  had  any  important  surplus  for  employ- 
ment in  construction  or  real  estate ;  and  the  inquiry  is  very  naturally 
made,  where  do  these  investments  appear  7  So  slight  has  been  the  sur- 
plus that  money  has  repeatedly  been  borrowed  for  the  payment  of  divi* 
dends,  and  the  directors  have  represented  to  the  Legislature  that,  without 
an  incrt^ase  of  fare,  they  could  earn  nothing  for  the  stockholders.  The 
reports  made  to  the  State  Engineer  show  that,  after  paying  ordinary  ex- 
penses and  providing  for  interest  and  dividends,  the  surplus  income  for 
the  last  fourteen  years  aggregates  only  about  $5,000,000  which  has  been 
represented  by  additional  issues  of  stock.  To  represent  that  the  surplus 
income  and  the  improved  value  of  the  Company's  real  estate  warrant  an 
increase  of  capital  to  the  extent  of  $22,500,000  is  nothing  short  of  anat- 
tempt  to  practice  a  bold  deception  upon  the  public.  It  was,  however, 
necessary  to  make  some  show  of  reason  for  this  extraordinary  procedure ; 
and  this  was,  doubtless,  deemed  the  one  best  calculated  to  serve  the  pur- 
poses of  the  directors. 

The  real   occasion   of  the  dividend  is  to  be  found  in  th«  speculative 
operations  of  parties  associated  with  the  management.    It  is  a  matter  we 
understood  in  the  better  informed  oirclea  of  Wall  street,  that,  some  few 
months  ago,  a  knot  o    eapitalistS|  mostly  in  the  direction  oombined  for 


1869]  rta  xsw  tobx  osrtilll  DXtiDXiTD.  A7 

the  porchaM  of  $7,000,000  of  the  stock  of  the  Company ;  and  in  order  to 
fiidlitate  the  pnrohaae  and  the  carrying  of  the  stock,  a  loan  was  contracted 
with  a  London  iMinking  hoa^  upon  the  stock  &s  collateral,  tlie  loan  to 
ran  for  two  years,  if  necsaary.  The  stock  was  systematically  depressed 
previous  to  the  purchase,  and  was  bought  at  from  84  to  95,  averaging 
about  90.  In  addition  to  this,  a  prominent  director  and  bis  family 
have  held  a  large  amount  of  the  stock  from  the  inception  of  Mr.  Yander- 
bllt*ft  control ;  and  this  clique  operation  served  as  a  support  to  his  man 
agemeut,  the  operators  being  pledged  to  his  policy  and  basing  their  oper- 
ation on  a  knowledge  of  his  plan.  The  declaration  of  this  dividend  i^  the 
ooDsnmmation  of  the  scheme.  The  clique  realise  about  60  per  cent  profit 
on  17,000,000  of  stock,  or  say  $4,200,000,  and  a  family  prominently  eon- 
oected  with  the  road  makes  a  still  larger  piofit.  But  how  has  it  fared 
with  the  ordinary  stockholders  7  At  the  time .  these  gentlemen  formed 
their  magnificent  scheme,  the  stockholders  outside  the  '*  ring"  were  not 
only  held  in  utter  ignorance  of  the  private  plans  of  the  directors,  but  the 
itock  was  systematically  depreciated  below  its  real  value,  so  as  to  frighten 
them  into  selling  to  the  directors  and  their  friends. 

This  operation  is  a  fair  illustration  of  the  manner  in  which  directors 
speculate  upon  their  exclusive  knowledge  of  the  affairs  of  corporations,  to 
the  iojury  of  the  non-ofScial  stockholders.    Either  the  New  York  Central 
Company  has  had  a  much  larger  surplus  income  than  appeared  from  its 
aonual  reports,  and  the  present  dividend  fairly  represents  it,  or  the  repre- 
aentations  of  surplus  earnings  are  fictitious  and  the  dividend  is  unwarranted* 
lo  the  former  case,  the  stockholders  ought  not  to  have  had  the  prosperoua 
condition  of  the  road  concealed  from  them,  but  should,  in  all  justice,  have 
been  allowed  a  full  knowledge  of  the  facts  necessary  to  properly  estimate 
their  stock ;  such  information,  however,  would  have  prevented  the  stock- 
holders from  selling  to  the  directors  at  low  figures,  and  for  that  reasonit 
was  withheld.     In  the  latter  case,  the  public  equally  suffer  from  their 
ignorance  of  the  affairs  of  the  road ;  for  they  are  quite  likely  to  take  from 
the  directors  and  their  friends  the  stock  they   have  advanced  to  such 
high  figures,  upon  the  pretence  of  the  extraordinary  prosperity  of  the 
Company.    While  directors  are  permitted  to  monopolise  information  re- 
spec^ng  the  bosiness  of  the  roads,  they  are  not  to  be  expected,  in  the 

present  condition  of  public  morals,  to  avoid  the  temptation  to  practice- 
upon  the  ignorance  of  the  stockholders  and  the  public.  The  only  remedy 
is  in  the  L^i^ature  requiring  each  road  to  make  a  faithful  return  of  earn- 
ings  and  expenses  at  least  once  a  month.  The  New  York  Central  com- 
pany has  confined  itself  to  an  annual  statement;  had  it  done  justice  to  its 
stockholders^  by  making  a  monthly  return  of  its  busmess,  tbe  stock- 
holdeis  would  not  have  been  taken  by  surprise  witb  this  extraordinary  divi- 
dend. Unless  some  measures  are  adopted  for  terminating  tliis  official  con- 
cealment, there  is  no  possibility  of  the  maintenance  of  public  confidence 
in  nihroflKi  securities. 


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7%  PUBUO  DBBT  OY  THB  URXTKD  sTATCfl.  [January ^ 

PUBLIC  DEBT  OF  TBI  UMTBD   mTKS* 

Abltrtel  ttatement,  aa  appears  from  the  books  and  Treasarer*  relDms  in  the 
Tnamiry  Department,  on  the  Ist  of  December,  1868,  and  Ist  of  JaDoary,  1869  : 

SSBT  BSABora  ooni  nrTSBSf  t. 

December  L   Janna*T  1,  HtO.     Increafla.      Deocaae. 

•  p«e0Bt.beBdS $»1.588,400  00  |»l,68»,a00  00  $910  00       $ 

a       **        1881 988.677,800  00     8)1(8,877,400  00  100  00  

•  **        OHMTb) 1,008^70,400  00  l,609,66i,860  00  l^TWOO 

Ttottl ^ S,107,S88,100  00  a,107,88S,86olo        780  00 


•  pfret(BB.)bondB $44,887,000  00    $50,097,000  00  $5,700,000  00      $ 

$p.  eent. eeitillcatef 68,140.000  00      66,866,000  00         9,876,00009 

]niTyPen.ir'd8p.e 14,000,00000      14,000,000  00  

Total 116,477,000  00     119,969,000  00  8,486,200  00       $ 

MATUEMD  BBBT  MOT  rBMSBKTED  VOB  PATXZaT. 

f-80a^a6Allc.l8,*6Pr,J'e*J'yl6,*6S  $9,478,460  00     $2,174,960  00   $ $808,650  60 

$^6.  comp.  Int.  notes  mat'd  June  10, 

Jnlj  16,  Aiig.l6  UcL  16,Dee.l.'>,  1867, 

Mmy  15,  Ai.g.  1,  kept.  1  A 16,  and 

Oct.l*16.186& 4,994,990  00       8,878,990  00      846,680  00 

B*diof  Texae  ind*t7 ...  966,000  00         956,00  00  

Treasiiry  notes  (old). 149,96164         148,66164      800  00 

B*de  of  Apr.  16, 1819,  Jsn.  88, 1647  * 

Uar.81,1848 48^500  00         849,960  00      8S.8GOO0 

Traai.niofMs.8,68 446,499  00          44%4ys  00  

Temporary  loen 948,160  00          197,810  00      46.KO00 

OifftIfl.ofindebt*eM 18,000  00           18,000  00     

Total 8,945,888  64        7,463,606  64  $ $78i,880  00 

BSBT  BBABIiro  XO  IHTBaSST. 

ITnited  States  notes $a66.09!,078  00  $866,021,078  00      $ $ 

Vractional  currency 88,875,968  17      84,915.716  64  840,447  47        

Gold  oertt.  of  deposit 98.906,840  00      97,086,020  00  8,780,180  00         


Total 418,169,18117    417,979,808  64   4420,687  47 


Besrinff  coin  Interest 9,107,886,100  00  9,107,&\880  00        790  00 

Bearlngcor'ylnterest. 116.477,000  00    129,fl09,000  00  8,485,000  00         

JCatoreddebi 8,94588864       7,468,508  64      789,88000 

Bearing  no  interest 413,159,18117  417.«79,8U6  64  4,1«0,€97  47         


Aggregate 9,645,711,164  819,652,588.669  98  6,829,497  47 

Coin  £cnr.  in  Trees 106,679,82067    111,89H,461 08  5,^47,140  86 


Debt  leet  coin  and  currency 9,580,081,84414  9,540,707,90195  1,675,857  11      

The  following  statement  shows  the  amooat  of  coin  aod  carreDcy  separately  at 

the  dates  in  the  foregoiog  table : 

ooxx  Aim  cuaauicT  nr  tbsasitbt. 

Coin $S8,42\8716i    $96,763,868  91$10.887,994  87  $ 

Onrrency 18,258,916  18      18,061,092  19      6,190,854  01 

Total  coin  A  currency lO6,5i9,89O0r    111,326,461  08   6,947,140  86      .. 

The  anooal  interest  payable  on  the  debt,  as  existing  December  1, 1868,  and 

January  !,  1869,  exclosiye  of  interest  on  the  compound  interest  notes),  compares 

as  follows  * 

AMifUAL  nmaasT  pataslb  ov  pusuo  debt. 

Dc^f^mbcrl.      Jaonaryl.  Increaie.  Dccreaie 

C0<a-6  per  cente $n.07u,420  00  $11,079,465  00  $45  00       $ 

**       «    *'     1^81 ]7,090,6-«00      17,090,644  00  6  00  

••       6    '*     (b.-20*a) 0fi,l>4,2.4  OU     96.154,119  00  106  00 

'Total  coin  tn'ttran $194  9M,982  flO  $194,964,998  00      $ $54  00 

Currency    npeicenU $2,fMiO,:f«0  00     $H,0ri\690  00      846,600  00        

3         »'        9,104.20000       9,(i0\90OCO  68,280  00 


Total  cnrrcnov  liitcrH $4,824,420  00    $5,101,770  00   $977,860  00 


1669]  DIBT  OY  TISOINIA.  1S 

SEVATOR  MORTON'S  YIJSASCE  BILL. 

Bflnator  MortoD  introdaeed  the  following  imporUnt  bill  on  finances  in  the  Senate 
OD  the  14th  msUmt  embodving  hie  vie  we  with  reference  to  the  reenmption  of  specie 
ptjmeBti.    The  foUowic^  u  the  bill  in  fall : 

ABiu.  to  proTide  for  the  RedemptioD  in  Oolnof  the  United  States  Notes  and 

Fhictiooal  Correoey,  and  reqairing  tbeKatiooal  Banks  to  Redeem  their  Notes  in  Cain 
Be  it  enacted  by  the  Senate  and  House  of  Representatives  of  the   United  States 

in  Cjngrses  assembled : 

Sionoir  I.  That  hereafter  there  shall  be  no  sales  of  gold  belonging  to  the  Treasary 
of  the  United  States,  and  that  the  snrplue  gold  now  hi  the  Tressory,  and  that  which 
Rkay  hereafter  aecme,  orer  and  abore  the  amount  require  4  to  pay  the  interest  on  the 
public  debt,  and  for  other  specific  useeepecified  bylaw,  shall  be  reserve  J  and  set 
apart  for  the  redemptloo  of  United  Statee  notes  and  fractional  currency. 

8sc.  S.  Be  it  further  enacted.  That  on  and  after  the  1st  day  of  Julv,  18tO,  the 
Trrasarjr  of  th  United  States  shall  pay  in  coin  at  the  rreasory  of  the  United  States, 
at  Wasbiogtoo,  and  at  snch  other  points  as  may  be  designated  by  the  Secretary  of 
the  Treasary,  all  United  States  notes  and  fractional  cnrrency  that  may  be  presented 
ibr  redemptioa. 

Sio.  8.  That  no  and  after  the  1st  day  of  January.  1872,  the  national  banks  nhall 
pay  in  coin  such  of  their  notes  as  may  bie  presented  for  redemptio*,  and  shall,  on  and 
after  the  )>t  of  July.  1870,  reserve  and  hold  in  their  vaults  all  the  oi>in  which  may 
be  r<*oeived  by  them  m  iatereat  oo  their  stock  held  by  the  government  for  the  redemp 
ticn  of  their  notes^ 

Sbc.  4.  That  until  the  first  of  Jan.,  1872,  at  which  time  they  are  requireJ  to  begin 
tbe  redemptioQ  of  tiieir  noles^  the  national  banks  shall  keep  and  hold  in  their  vaults 
tbs  full  reserve  of  legal  tender  notee  as  now  required  bv  law ;  and  that  on  and  after 
tbat  time  the  reserve  legal  tender  notes,  as  fast  as  withdrawn,  shall  be  repla  ed  with 
eoio  to  a  'ike  amount ;  and  the  said  banks  shall  thereafter  bo  required  to  hold  their 
resfrve  in  coiu  to  a  like  amount,  and  for  the  eame  purpose  as  now  required  by  law, 
to  be  held  in  legal  ten<ier  notes ;  provided  that  the  Comptroller  of  the  Oorreney  may, 
with  the  assent  of  the  Secretary  of  the  Treaanry,  allow  the  said  banks  to  h3ld  a  por- 
tioi  of  I  he  eaid  reserve,  not  exceeding  two- fifths  of  tie  said  amount  required  by  law 
ia  United  Statee  notes. 

Sio.  5.  lliai  the  Secretary  of  the  Treasury  may  cause  as  many  of  (be  United 
States  Dotes^  redeemed  under  the  provi  ions  of  this  act,  to  be  cancelled,  as  mav  in 
his  ju  gmeot  be  neeeeaary  to  the  proper  liaiitation  of  the  currency  ;  provided,  further, 
that  all  firactional  currency  that  may  be  redeemed  shidl  be  cancelled. 


DSBT  OF  YIROIJIIA. 

A  statement  of  the  public  debt  of  Tirginia,  November  1, 1868,  lately  publisherl  by 
the  Treasurer  of  Virginia,  ehowe  the  following :  Total  old  regietered  and  coupon  debt, 
|i2,B08/)S2. 

nmaxsT  txskowd  vovziibxb  1,  1868. 

DatsdJsnn«r7l«  1868:  Coupons $1,301,500  00 

5«i,t«ea.  ..  _. 1,686,806  77  $2,087.806  77 

Sated  Jannary  1, 18672 

Ooapons  ^ $2,144.600  00 

BlerUag .^ 466,«50  00 

$9,610,760  00 
Begisterad .^ ^ 1,1M,496  41    8,80%245  41 

.  XOVIXBSB 1,  1868.  $6,793,061  18 

Anoaet  of  coupons  to  he  ftaded. $268.8?8  00 

BcKittereddebttob^fUDded .     015,838  »1     $873.648  01 

4BBasRiTerandKaiia»aOo.  guaiantees  yet  to  be  converted 980.880  00 

Total $1.109.4i8  91 

.       ^.  Boxse  ouABAimsD  ar  arATi,  hov.  1. 1888. 

jwes  HiTer  and  Ksnawha  canal  Cumpaoy $98a890  00 

^^TspeskeaodobloCimal 600,000  00 

vilS^*:^**'?^?^ 898,500  00 

YifKteU  Central  fiiUroad  300,000  03 

JHponpodaia«t  Danville  BaUroad 200.000  00 

22L?'yhediM 866,000  00 

**«*»*rt»OMj. .^.. 16,000  00 

T^*^ .^ $1,786,880  00 


lA  ooumtBCUL  OHBOHicu  ARS  bxthw.  [t/onttory, 

COMMERCIAL  CHRONICLE  AND  REVIEW. 


■  "  "  "  ~  ■  ■   »^^^».^-..—  -  —  —  — ^  m  rij— Li-Lrun-JXjT-r 


Course  of  Xonetarj  aflUra— The  B^ock  Market— Bonds  sold  at  the  New  York  Btoek  Bzchaage 
•  Gove  nnent  Securities— Conne  of  Consols  and  American  Secnrities  at  London— Higheat 
snd  Lowest  Prices  ot  Ballwsy  and  Mlse^llanecns  Secnrities— General  Movement  of  Coin 
a  d  Bullion  at  Kew  York-  Course  of  Gold  at  New  York— Course  of  Foreign  Exchange  at 
New  York. 

The  coorse  of  mooetarj  afiaira,  daring  December,  has  been,  in  some  respects, 
Tery  ncosaaL  The  artificial  stringeocy  In  mooey  daring  November  interfered 
with  (be  forwarding  of  prodooe  from  the  interior,  postponing  the  m^^  yement  to 
a  period  aboat  a  month  later.  The  result  has  been  that  money  has  been  flowing 
to  Chicago,  Cincinnati  and  other  Western  citie.",  antil  late  in  D^^cember,  for 
moving  the  bog  crop,  while  at  the  same  time,  the  high  price  and  the  fair  receipts 
of  cotton  have  indaced  a  very  active  demand  for  cnrrency  from  the  Somh,  so 
that  the  fI  ipments  to  that  section  have  been  much  larger  than  at  the  same 
period  of  last  year.  Hence  the  city  b^nks  have  been  parting  with  large 
amounts  of  carrency  at  a  time  wh:n  it  asnally  begins  to  flow  back  into  their 
vaults,  ani  at  the  close  of  the  yenr  they  held  only  $48,000,000  of  legal  tenders, 
agaiost  $  2,000,000  at  the  same  period  of  1867,  and  $6.'>,0'K),0(  0  in  1868.  On 
the  4th  of  January  they  were  required  to  make  their  quarterly  statement,  and 
the  prepar.itions  for  that  retorn,  under  the  circamstances  indicated,  were  natur- 
ally atterded  with  oocsiderable  calling  in  of  loans  and  a  momentary  curtailment 
of  loaning  fucilities.  The  result  of  this  conjuncture  of  unfavorable  circum- 
stances was  to  make  borrowers  almost  wholly  dependent  apon  street  lenders ; 
w!)0,  as  usual  under  such  conditions,  exacted  extra vegant  rates  of  interest  for 
sever.  1  Haye  before  the  close  of  the  month,  call  loans  ranging  from  7  per  cent 
in  gold  to  that  rate  with  a  commission  of  ^^  per  cent  This  condition  of 
eflTdirs  has  added  another  to  the  numerous  crises  growing  out  of  the  present  sys- 
tem of  periodical  bank  statements  and  the  lack  of  elasticity  in  our  currency 
system.  These  evils,  however,  have  now  become  so  chronic  that  their  regular 
recurrence  scar*  ely  excites  remark.  The  periods  at  which  they  occur  are 
indeed  welcomed  by  a  class  of  speculators  who  make  them  the  occasion  of 
locking  up  mooey  to  promote  stock  ventures,  or  turn  them  to  account  by 
exacting  usurious  rates  of  interes .  Needy  bcrrowers  have  been  driven  to 
every  conceivable  expedient  for  raising  money.  Unable  to  obtain  currency, 
they  have  pledged  their  collaterals  against  gold,  which  they  have  sold,  taking 
the  risk  of  being  able  to  buy  it  back  again  at  the  same  price.  SoQ:e  capital- 
ists have  loaned  their  currency  upon  gold  at  full  legal  interest  and  a  heavy  com- 
mi  fiion,  and  have  again  loaned  the  gold  so  received  upon  stocks  at  7  per  cent, 
thus  making  1 4  per  cent  an  t  a  brokerage  charge  of  i^i  per  cent.  Banking 
arrangement4  which  tend  to  produce  sach  a  condition  of  things  as  this,  sorely 
call  for  prompt  revision. 

l*he  stock  market  has  sympathized  less  with  the  stringency  of  money  than 
might  Lave  been  expected.  Brokers  have  become  accustomed  to  these  periodi- 
cal crises,  and  provide  against  tbera  in  anticipation  by  time  louos,  so  that  the 
only  parties  to  sofflr  are  the  smallei  holders  dependent  apon  margins,  whose  sales 
have  comparatively  little  efllBCt  upon  prices.    The  declaration  of  a  special  divi« 


\809]  OOMMSBOIAL    CHRONICLK   AND    RXVIEW.  95 

dend  npon  N  w  Yrk  Ceatra\  pottlog  up  the  price  to  160,  aod  c^D^idera- 

tion»  afiertin?  fnyorAbly  so  i  e  other  leading  Btorkp,  have  had  a   tendency  to 

Btrerfc'h«'D  the  whole  market,  and  eome  shnns  huve  reah'zed  nnasually  high 

figure^,  ID  spite  o(  the  adverse  iDflQeoce  of  the  loan  market.    Ti  e  flmooDt  of 

ordinary  trapsactioDS  in  stccki'  bus  been  qaite  lintiied  ,  but  a  con^derable  ezteDt 

of  bn«i!te  a  ba^t  been  done  in  the  way  cf  *'  turning"  stocke — that  ie  selling  for 

immediite  delivery — in  order  to  tet  money,  and  buying  them  in  ttgain  deliverable 

Dext  day,  or  at  the  buyer's  option.    The  tota*  sales  at  both  •  oards,  for  the 

month,  wi^re  1,<<93,730  stiares,  agai  st  1,76  ,721  in  Decembtr,  1867.    1  he  total 

tno«actions  for  the  year  at  th>  two  board**  hav   bten  19,713,402  shares,  apaiost 

21,27I,('3(i  Id  1867.  showing  a  material  falling  off  in  this  branch  of  speculation. 

CiMsee.  1807.  1868.      Increase.  Dee^ 

Bank  iliarep S.4  1  1,697  i'fi 

BallTMd    "  1,876,1*17  96ft,xK»9  810,818 

Coal           »» ....  7JT4  6,7>7  2' IT 

Xioiaf      ♦*  :F,»W0  16,1^  18,650 

Impn>T*nt"  37,4H5  9,100  28,5J65 

Tefef'tph»»  I(itt,08«  S4,«*6  84,860 

Btcamthlp"  178,740  41.%9  11,^1 

&n>r*fle^«* l.B,70«  £0,9-2  ....  95.':66 

Tout— "eoe    her 1,7«»',7«l     l,r98,/80  666,^'«4 

**   -since Jannaryl 3i,-^l,u3tf    19,7ia,408         l,66i,>»l 

UDi^ed  States  bonds  have  not  exhibited  'he  bu  yancy  that  osnally  chaiacter- 
iz»  the  market  in  December.  The  cnstomaiy  advance  just  previous  to  the  ma- 
toriog  of  the  January  interest  has  not  occurre«i ;  nor  ha^  the  anticipation  of  the 
large  demand  in  January  for  the  employiueu  of  dividends  and  intert^t-t  had  its 
unijl  effect  tn  stimulating  speculative  p^ircba  es.  The  stringency  of  money  has 
been  unf  vorable  to  these  moveu.cnts,  while  it  has  preveotel  the  banks  and 
fioaneial  institutions  from  buying  for  the  employm  nt  of  their  balances  during 
the  ease  which  usually  eets  in  during  January  From  theoe  cause:*  prices  closed 
St  near  the  opening  Ogures  of  the  month.  The  total  tmn^actionii  of  the  month, 
of  all  c{a>se>  oi  bonds,  amount  to  $20,060,550,  against  $.3,5b9.05()  for  the  same 
KODth  of  1867;  for  the  whole  year,  the  sales  aggngute  $245,245,240,  against 
•206,98J,43u  in  1867. 

BONDS  BOLD  AT  THB  H.  T.   ATOCK   BXCHANGC  BOAKO. 

^CUisefl.  18«7. 

U.&bonda $0,667,400 

U.S.noteB      .   84,660 

SreAcltyb^de S.401»,60U 

Com{)enj  b'de    •••• 7^7,500 


i8t;8. 

«18,b89,600 

•  •  •  ■  •  • 

4,1 65,750 
1,812  iW 

Inc. 
$4,-a  ,SCO 

«  •  •      •  • 

1,660,850 

481  7U0 

Dee. 
a  •••■.'  * 
784,660 

•  •  •  • ,  • 

$80.0'iO,6fO 
846,846,810 

$6,471,600 
2i8,804,810 

Total— December $18,689,060     $80.0'iO,6f  0 

'*    — einceJan.! 806,980,430 

The  daily  closing  prices  of  the  principal  Government  eecuriiies  at  the  New 
York  Stock  Exchange  Board  in  the  month  of  December,  as  represented  by 
the  hitest  sa  e  officially  reported,  are  shown  in  the  following  statement : 

rmiCXa  OV  GOTBBMMBirT  ■X0UB1TIB8  AT  NBW  TOBX. 

Dajef  ,-rii,  1881.-S. -6'is,  (6-80  yrs.)  CoupOB .6'f,10^* 

BMBth.  Conp.    Ueg.    1S68     186:)      1h<6.   new   1867.  ISS^^.irs  C*pa. 

J. iio?<  i07if  imx  11"     iiOK  iio;^  i06)i 

! 114X    llOH    1103K     107>i    llOK    UOX    ll«>i    105K 

t ....    114K    libH    1>1X    KnS    1079(    llOH    llOK    111        106S 

} 116  iii«   \(n)i  mn  ihH  iioji 

B nOH    ilOK    107^  .    IIOX    llOH    106K 

I inX    107^    108)tf    Ui}i    11096    110«    106X 

6 HI        ](8>i    110>g    110>^     106^ 

» 114K  no     inx  107M  i07;g  iio,h  no)i  iiox  io6h 


OOMMISOIAL   OBROKICLB  IKD  KKTUV,  \JiaUiary, 


^4*1.1881—, e'>,(MOTN.)Conpcni .B1,IM. 

Conp.    Rce.    IBN.    ISM.     las.   D*«.  IWI.  IBSR.Tn.C-pD. 

..  ;mk  Ill     lOT     UB     i:ox  iiov  lUx  inx 


- IIOX  107       MIX  llo«  1I0«      .     .  _.. 

II nex  "OK  101     >cnx  111)  iicK  iTOK  iobx 

14 iiu3<  m     mx  iiu  latji  iiok  iom< 

IS lUH  .-•.  IIOX     ....    107\'  110«  iiox  i»»S 

u i'43K  mv  11UX  i(rrj<  lO'.K  itou  iiov  mx 

li :hx  iwv  n^u  losK  i<n}<  iiQ  I'OK  iobm 

IS 114X    IIOX  IMK    ](■»  lOtV  ItO  

]> iHV  WH  iinx  iwx  loiH  IDBX  io»x  now  us 

■1 IMK   iiox  loox  ittix  iio«  UK  losjt 

« 1M«  ....  IIOK  IO«X nOX  "OX  IIDU  IWX 

ss iMX   110  iDtx  itnx  loox  no  y.oa  ina 

M lot  llOK  lOBX  lOlX  UftX 

» (OhriMou.) 

M. IMX  110U  I07X  IIOX  1I0M  lOBK 

HI lUK  lt«  IIOX  10*If    10»  11DM  111  1=1V  lu&K 

M ,    1HX    110«  lOT       im\  llliJt  11X  111  «»K 

>) IHX     IIUX  110X  ItlX  mX  lUK 

81 109  llOX  107X    llOX  lux  lllK  

Tint lUX  nox  IIOK  lOTX    mX  11«  IIOX  110X  i«x 

Lowat 1HX  lliSX  110  IWX    lO'X  lOIX  IWX  HO  !<» 

HIgbeit lift  11U»{  IIIX  imx    loax  llOX  lux  li:X  lOGX 

Stage, X  IX  IX       IK        1           IX  IX       IX          X 

Lut- iitx  10V  110X  imx  lOTx  nox  imx  lux  iwx 


The  closing  prict^  <jf  Fin-Tweotitia  at  Frankfort  in  each  week  eodii  g  with 
Friday,  were  u  follows  : 

Dee.l.  Dec  11  Dec  IS.  Dee  H.  HoDlh. 

TOXaWX  "JUX  TSX  Ctariftmal  1SX«nX 

I'he  following  table  vrill  -how  the  opeoing,  highest,  lowest  and  closiog  pricei 
of  all  the  railwaj  and  miHcellaneoas  eecoritiea  quoted  at  the  New  York  Stock 
Ezchaoge  durint;  the  mooths  ot  NoTember  and  Deiember,  ]866  : 

. MdTembsr .  , Demniber. . 

Open,   talffh.   L<w.   Cloa.    Open,  uleti.    Low.   CIo*. 
tUUniad  Stoeki— 

Alton  *  Terre  IIiDt.jir«r flO       et         en        «!         at         U         l»X      <t 

B«loa,Hanr.'ra«Brle nx      I'X     tlH     VK      M         W         W         M 

OilcaKe  A  Al'oa Itl      Ul      DM      141      141      141      14>      in 

dii  llo    BTtt IW        130        ]SS        14T  UeX  1«X  l^X  14B 

Chicago,  DdtI.  A  Qnlncj 170       m       IS)       ITO  ITl  m  IIU  IT.I 

da       sun    Bi.«Wrn 

d>       «  NanhwMt'a MX      MX      13         eS  8a  eax      T4X      HI 

do  doiiref. »1         six      TIX      SIX  MX  8SX      ISX      SIX 

do       ARocklalnnd 104X    1D»X    10>       KMX  IU7X  US  lO^^X  tl8 

ClB»e..  Col.Cln  *Ind    re         W         IB         MX  7  "         7*«      HX 

OolBmb.Chlc.  *1ai.  O WX  41         ffiX      41 

do    APIIlibDTS 91        SSX      SIX      Xfi  SIX  SHX      81         81 

do    AToledo IM       109         K       lOIX  lOOX  lOtX      MX  >0l 

I>gL,Laiik  *  VMtam UO       130       IM       1»X  131  Ul  1«  UC 


1M9] 


(XnafKBOIAIi     OHROKIOLK  AND    BITIXW.  77 


•*••  «••• 


Ottboqw  ASioazcitf — ••» 

do  do     pref ^ 

.    40  64  85X 

Jk>pfer 66  65  60 

Htrlem 

do      pref.,,.,,  ,     .-,,,,        ....         •,, 

BaBBlbil  A  St  Joseph ,*.'.*,'.....'.'.'.'    90*  M*  W* 

„  do              do  ptef. W  Wji  86 

HndNDBiTBr 187ji  188  180 

do       do   scrip SO  90  90 

niiaoU  Cental  144  144  141 

lBd.*Cln  inoAtt 

JoUetA   hlago. 96  96  95 

JfikeShore 99X  100  96 

Mar.  *Clndii,,letpre£, S6  85  95 

MkUeui  CcntxiU 116  118  HI 

do      S.  AN.  Ind 65  90  80 

XflwinkeeAm.  Peol 05  97K  61 

_  «•>               do  pref. ^....    96)4  98^  7<) 

XoiTliASaaex 

VtwJofj 1S4  184  ISIJ^ 

,.   do        Cieitnl MOX  Wl  11» 

liewTork  Central 1851^  1S9|^  i:5 

_   do        AN.HAven.. 148  148  140 

Korwicb  A  Worcester 90  90  90 

OUCp^-IcA  Alleg:h«iie3r 

OidoAXlMla»ippl 80S  SIX  ^H 

do             do        pref 79  79  70 

Puuu   880  880  880 

Pltttb.,7t.W.AChiau 119^  118X  lOOK 

l«idliw.  ...    91%  90X  92 

BeDMBjMr  A  Saratooo 

Bom  A  Watertown 114  114  114 

KtouagUm 86  85  85 

ToMo,Wftb.AWeftem 61^  69  54 

do       do       dopiof 78X  t^X  "TO 

jQieeilaaeoiu— 

CaabefiandCoAl 85  41  84 

D«LAHad.OuialCoal 180-  1^)4  197 

PtmsylTuiUCoal »0  990  890 

Bpriag  tfonnUilii  Coal ••• 

A* •mni  jftBU* •••••■••••»•••••■•••  •••»••  ••••  ••«•  •••• 

PiclielUU 194X  lt4X  118i^ 

Boeton  Water  Power 15>4  1^)4  UJi 

Ctnioo 47  61^  45>( 

BnnnrickCitT 19  1«  11 

Xtrtpoaa 6X  6X  « 

^  do      pref J8K  «»;4  WX 

Qaickt|}Ter *^»   »H  >)  90 

SaBhettanGaa ftf  985  S85 

Wcfft-UniooTelegnpli 86  VIH  88X 

Btakere  A  Brokers  As 


•••• 


•    ■  ■ 

97 

97 

97 

97 

•  •■• 

96 

96 

96 

96 

40 

5!^ 

41 

87X 

88X 

60 

60 

65 

60 

65 

•  ••• 

185 

1S8 

180 

185 

«  •  •  • 

180)^ 

m^ 

1»X 

ISO^ 

90 

90 

91 

90 

9u 

99X 

9^X 

98X 

90 

90 

181 

189 

^^^ 

i^)4 

185X 

90 

98 

98 

M) 

98 

148X 

144 

1*4)4 

140 

140 

•  •  •  • 

•  •  • 

•  •  •  • 

•  •  •  • 

•  •  •  • 

15 

•  •  ■  • 

•••• 

•  •  •  • 

•  ••• 

•  •  •  • 

•  •  • 

•  • 

•  •  •  • 

*  *  •  • 

ICO 

100 

101 

95 

90 

95 

95 

95 

na 

»X 

inK 

118)i 

199 

116 

116^ 

ss^ 

88^ 

89^ 

84X 

87X 

70X 

TOX 

63 

69 

88>< 

88 

89 

"X 

86X 

•  •  •  • 

90 

95 

85 

87 

188 

138itf 

188X 

189X 

189 

116 

115 

117 

llOK 

115 

199X 

188X 

169X 

188X 

169 

U) 

140 

140 

140 

140 

90 

91 

91 

91 

91 

•••• 

8ii 

60X 

80 

80 

S* 

91X 

84X 

99X 

MX 

7VI 

•  ••  • 

•  •  •  • 

•  ■  •  • 

*  •  •  • 

880 

880 

840 

887X 

840 

11!K 

lllX 

114 

109 

11  X 

993^ 

9B)4 

98^ 

96)4 

9i* 

•  ••• 

98 

98 

93 

98 

114 

118 

115 

118 

115 

KS 

88 

88 

88 

ai 

58X 

58 

69 

MX 

59 

7i» 

70^ 

t0)4 

70 

TOX 

40K 

89X 

»X 

86 

86 

1S« 

181 

184 

180 

180X 

890 

•  •  •  • 

•  •  ■  • 

•  •  •  • 

•  •  ■  • 

•  •  •  • 

•  •  •  • 

•  •  •  ■ 

■  •  •  • 

•  •  •  • 

•  •  •  ■ 

91 

9t 

91 

SI 

11 8X 

118 

190X 

lllX 

118X 

IW 

15 

U)4 

1«X 

18X 

51 
11 

60X 

50>tf 

47X 

49X 

• 

• « •  • 

•  •  •  • 

6 

6X 

6X 

4X 

6 

91V 

» 

91K 

19 

90 

-2^ 

M^ 

88X 

&0X 

98 

995 

%^ 

980 

980 

980 

87 

.5?^ 

•S^ 

88 

3  X 

•  •  •  • 

100 

100 

100 

100 

48 

45 

46 

49 

46 

• « •  • 

41 

49 

49 

49 

60 

60 

60 

48 

48X 

60 

46 

46X 

45 

46 

21X 

1!^ 

18X 

UH 

14X 

97 

96 

«6X 

95 

S5X 

Aaericui. 46        48        41 

American  M.  Union *     .... 

Adaas   ^  49X     50        46 

VnitedStatee ^ 48        60        44X 

Mcrchanra  Union 91X     91X      l&X 

Wcllt,  rarxo  A  Co. 98X     »H     » 

The  foUowiDg  formala  will  show  the  movement  of  coin  and  ballion  daring  the 
month  of  December,  1867  and  1868,  respeotively : 

•XMSaAL  M OTBMSRT  OF  OOUI  AMD  BDLUOIf  AT  mW  TOBX. 

1867.  186&         Increase.  Decrease 

la  tanks,  near  flrst $16,579,890  $17,644,864  $1,071,874    $ 

BeeripUfromOalifomia. 8,888168         784,019      9,604,143 

laporta of  coin  and  bullion 198,917  496,010       873,109      ,7^,... 

Oofa  Interest  paid. 1,488.758      9,589,900     1,101,147      

Bfitempt1nnofloanofl847"*4S 48.660         48,660      

^TWri  reported  supply. $81,498,729  $81,519,759       $89,080    $ 

Kiponaof  col&andbalUon $6.e4S,tf78     $M84,684      $5,600,994 

GBstonadnttes 6,448,944  6,667,578    1,109,899      ...... 

Total  withdawn "^W^    $7.798^7   $ K4wi^ 

I»e«  of  reported  anpply $9,181,600  $18,':90,605  $4,588,906   $ 

Specie  la  baaka  at  end:.. 10,971,969  17,940,865    6,968,696         .„._ 


l>niTedftmuirepoftodioazoM v  91.840,869    $4,920,970  $9,879,901      $,...^ 


78  OOUUieOtAI.    OBBORIOLK  AMD    kX«7|W.  [JanHOrjf, 

The  gold  premiQin  has  been  on  the  wh-Ae  sleodj,  the  price  hbTiag  ranged  be- 
tween 134|  and  136}.  the  h  ^hest  figures  baviog  been  reached  ouder  the  esrlj 
BpiirehenBioas  or  trouble  nriniog  out  of  the  hlnBtern  complicaiioDs.  Daring  the 
^nre  month  ot  18<>7  the  prtct:  ranged  betwceo  132i  and  13T{.  The  tooe  of  tb« 
market  has  been  decidedly  strong,  which  alone  bu  prevented  the  scarcity  of 
money  frocD  breaking  dowo  ihe  premiam.  For  sereral  days  neit  preceding  the 
clo.-e  of  the  month,  holders  of  gold  hiie  had  to  pay  from  1-16  to  i  p-t  cent  per 
day  for  baring  it  cirned.  Tiie  eipirts  of  coin  dnrlog  tbe  month  have  been 
on  y  SI,234,000,  agai  Bt  S6,)-43,000  for  the  same  period  ■  f  last  year,  and  Ibeit 
is  coitKqaeotly  a  corre  pondin^'ij  large  supply  of  gold  upon  the  market. 


'--  centimes        caaURj: 

Daj*.  fordolUr.  -    " 

1 r  817X®SI««    ■■ 

9 ;  B1T«..616J(    . 

■ :  siTjiOsieg 

* ;  &'JixSaiiH 

B mxw"" 

1 f  !"«$ 

1!::::;::::::.::::::  SkI 

It  i  mx& 

11 ■  BMJtSi 

IB i  BUH& 

» .  BisxSi 

IT (  atitw... 

18 f  BlWSslltK 

» i  KJMWWii 

SI .  biumSbu 

as [  ua  Soisx 

M i  BIS  SiisS 

M ■  eiwasiBx 

SB mamoix  sit»(Ssi«S                            ae  Smm  tisSns 

•B ms9}'»ii  Bii;tOui)ii                               «s  SSS  nSSi'S 

U MBXSlOMX  BlltJ«a ■ »).'«r"    fl)t8«S 

Dw.i«R. iwkSiiom  s]7x$su»  «)»34ix  nxdnx  ukomS  tixS^m 


1869] 


JOURKAL   OV  BANKING. 


OUBREROr,  AKD  7IirA9CE. 


79 


JOURNAL  OP  BANKING,  CURRENCY,  AND  FINANCE. 

Batnnu  of  the  New  York,  PhiladelaphU  aod  Boston  Banks. 

Below  we  give  the  retarna  of  the  Banks  of  the  three  cities  since  Jan.  1 : 

nw  TOBK  OXTT  BANK  BXTTTBNB. 

DttSL               Lo^ns.           Specie.  Circnl  t>on.  Deposits.  L.  Tend^s.  Aer.  c'cArVfi. 

Janoary  4..   |MOJ4i,SSr7     $12,734,014  $34,184,80:  $187,070,786  $62,111,301  $4&'i,2^i6,H04 

Jiouryll.       ^i,170,TS3       19,»2,856  84,004.187  194,835.685  64,753,116  5i)8,8M.&36 

itanuy  18    ..  t!Sa,083.088       83,191.867  34,071,006  306,883 148  66,166,341  619,7()7.:if>9 

J&naaryS;  ...  953.893,101        95,106,800  84,0-3,763  210,093,064  67,154,161  628,508.318 

febmsrr  1...  866,416  618       38,955,830  44,063,631  313.830,624  65,107,lb3  687,449,9^8 

Febniuy  S...  &70,565,866       38,838,873  84,096,831  317,844,58  55,816,359  697,242,6»5 

Feteninr  15  ..  871.016,970       84,193,955  84,048,296  816,750,$23  68,471,763  660,521,185 

FcbraarySl..  867.768,648       83,618,987  84,100,038  »0<»,095.361  60,SH8,9.iO  462,421,593 

February S9  ..  967,340,6:8       93,001,643  84,0  6,388  808,661,578  68,563,607  705,10'.)  784 

Xvch  7 369,156,680       80,714,3:^  34,158  967  307,787,080  67.017,014  619,210,598 

XvcbH 906,b16,0!'4       19,744,701  84,318,381  *401,188,470  64,738,866  6»1,2T},641 

IhrcIiSl......  961,4;0,900       n.944,.a08  84.313.671  191,191,626  63,261,086  649,4H2,341 

]brcb28       ..  957,878,347       17,838,867  84,190.808  186,53M-i8  63.l33,tr78  667,843,908 

April  4 9IH,987,891       17,(m,S00  84,337,108  380,950,840  61,709,706  667,783,138 

April  11 ^163,986.735       16,848,160  84,194,373  179,861.880  61,983,609  493,871,461 

ApillS 954,817,930       16,770,649  84,318,581  181,833.523  60,^83,660  638,713,938 

AprU36.      ...353,814,017       14,948,647  84,337,034  180,807,489  53,866,757  0  3,784,154 

lU7    9 957,038,079       10,160,873  84,114,848  191.300.185  67,803,6S)9  688,717,809 

Mir    4 966,765,888       91980,910  84.205,409  199,376,568  &7,541,^87  6«>7,0.?8,567 

)Li7  to f07,7»l,783       90,9^9,14^  84,193,349  801,3H,805  67,618,0<I5  460,lS6,9u8 

Maif  S3 307,881,370       90,479.947  84,188.(88  903,607  660  0*^,283,002  4t<8,73\143 

lUj  aO 96H,117<490       17,861,088  84,145,600  20',746,964  66,633,964  002,118,34 

ime   « 978,79S,?67       14,833,581  84,188.169  909.089,655  68,823,03S  640,f;6:3,339 

inaelS 976,143,034       n,193,r.81  34,166,846  910,670,765  69,203.840  580.828,197 

'uetO 974,!17,6li8         9,134,680  84,119,130  911.484.387  72.567,582  653,9.>'3,817 

{lBe97 976/H>4.  80         7,758,800  84,018,731  914,302,207  78,853,308  610,736.075 

ivlf    3 981,04.'S,931       11,954,7J0  84,a3i,4<>0  921,0oO,800  72.135,939  695,646,698 

Jal7  11 381,147,708       19,385,348  84  068,203  824,320,141  68,5:)1,542  591.766,3'45 

Joiy  18 883,913,490       90,399,031  84,004,111  928,190,749  71.847,545  605.463,4^4 

Jatj25 980,845,265       90,804,101  88.963,378  9i(i,761,862  73,235,581  487,169,387 

AogaPt  1  ....  979,81 1,^57       20,603,787  83,96':,806  83S  I0t,807  78,^;38,<  61  409,81,169 

AngBM  8....  979,706,780       94.784,437  81,074,874  931716,493  74.051,648  587  004,381 

Aii^«tl5....  377.8Q6,«30       82.9'^8.S5)  84,1 '4,087  838,661,087  73  9  5,481  483,6^3.953 

Ansoit 22....  875,845,781        )9 768,681  84, 1 87,627  916,486,406  69,757,645  010,308,551 

AnsostSd....  871,780.720       16,949,103  M,113.l:i9  8!0,384,040  07,757,370  480,785.665 

3cptenber5     971,830,098       16,815,778  84,170,419  fi07.i)64,841  05,9S8,778  470,036.175 

8q>tember  13.  373,055,690       16,150,942  84,189  920  996,489,070  03,429,837  493,191,073 

September  29.  971,96  ',096       14,665,749  84,044,693  902,834.583  08,772,7r'0  618,471,559 

Sepember  90.  971,378,544       13,*S03,488  84,060,771  fiOi,068,8.'M  08,587,576  090,105.094 

October  8....  869,5'>8,863       11,767,8%  84,154,e06  194,919.177  00,3 10,4^7  747618,510 

October  10....  905,505,583         9,846,097  84,188,103  189,053,997  60,r05,C<80  067,958,155 

October  17  ...  904,044,185         9,180,630  84,318,918  188,880,680  58,636,857  685,616,454 

October 34....  968679,188         9,563.588  34,193,988  186,05 ',847  66,711,4-34  850,584,448 

Ocu>ber3i....  903,865,660       10,0:!0,52e  84,3  8,310  181,948,647  51.690,9  8  809,462,64s 

WoTemhcr  7..  960,013,191       16,446,741  84,85 ',637  175,568,718  47,167,307  876,671,604 

Vovenber  14.  940,119,630       10156,08  84,S49.6'4  i76,i&0,689  51,466.093  807,806,643 

VoTember2]..  251,091,068       17,.-e8,163  84,196,068  184,110.340       08,699,944  865,111.99o 

Horember 38..  354,386,057       15,786,'^TT  84,384,603  187.418,885  69,441,900  613,9SS,80o 

5«ember6...  r.9,491,705       17,044,261  84,  64,759  189.848,817  59,493.470  086,'33,89fl; 

fMcmher  13..  963380,144       19,14,778  84,905,900  18^837,415  54,015,^65  685,0^8,460 

$ee«abe'19     964,434,180       18,648,5^  84,353,753  188,017,238  50,796,138  011,10b,13s 

l>Membcr 96..  961,843,580       17,940,805  84  857,114  178.603,768  48,700,10J  C91,939,90s 

PinTiAT>lT.FHIA  BAKX  BBTUBNB. 

.   Bste.                      Lenl  Tenders.  Lofins.  Specie.  Circnlation.  Deposits 

JuHUry    4 $16,789,489  $69,00i,804  $286,913  $10,689,000  $86,^1.974 

{iMiry  11 16,087,995  59,508,707  400,615  10.689,090  87,181,880 

Jaauiy  \% 10,827,438  53,013,190  820,078  10,041,769  87,457,089 

ivn»xj  95 10,886,087  59,835,699  979,898  10,046,326  87,812,640 

Tebnutfj  1 17,004,181  53,004,915  948,678  10,688,937  87,993,287 

Februry  8 17,068,710  53.073,448  987,878  10,035^930  87  890,058 

Febroar7l5 10,940,044  53,683,940  968,157  10,663,838  87.010,680 

FebniarySS 17,578,140  53,438,160  904,939  10,632,495  86,458,464 

Febniax799 17,877,877  53,459.757  911,865  10,634,484  85,798,314 

Jandi  7 17,157,954  68,n81,065  983,180  10,683,718  84,836,861 

S>Rhl4 16.668,399  58,867,611  961,051  10,681,899  04.628,660 

mbSl 16,664.040  68.077,837  999,518  10,048,618  88,886,990 

w^tt 14,848,891  58,450,878  193868  10.648,600  83,438.890 

APrtl    4. 18,398,635  69,909,384  915,835  10.643,670  31,378,110 

4l^!  11 14,101,885  69,350,040  850,340  10  640,983  83,366  671 

^J  » 14,498,387  68,989,780  883,230  10,640,470  88,9.0,068 

i^tt  n 14,951,100  68.313,028  904,090  10,040.819  84,767,290 

m     4 14,990,833  68,888,740  814,860  10,031,041  85,109,937 

■*7  U 10.166^017  68,711,70  887,778  10,099,0^  86,017,590 


JOITRKAL  or  BARKIltO,  OUBUtKOT,  iJtD  TIXAKOB.       [/oiMUiry, 


XV     IS 

HIT    » 

#ana     1 

JoM  n 

Jane  It 

Jnlj     C 

inl*    la 

Jnl7    n 

Jnlf    IT 

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iDEditn... 
ABiiutM 

AartMini 

8«i>tcmber  1... 
8cpt<snib«r  14... 
BeplFmberll... 
Baplember  M... 
Oct4>b«r  B 

Ott>ba }»'.''.'.'.'. 

Oct  brrM 

Vunmbtt  ».. 
NoTcmbT  9  ... 
NonaiMr  W  ... 
Movmibcr  It . . . 
KoTtmxntO... 

IMormberT 

December  I(.... 


4a.tTO,lC» 
4*.Jt0.tm 


■  M7S,M0 
)8.1T4.M8 

ST,ni,1M 


Ibrch   1. 

ICarcb  •. 

XuchlO. 

Hirebn. 

HarelkW. 

Aprtl     0 

April  U 

April  W 

AprU  «l 

Ifiy     » 

Kar    11.  

M»j    18 

»»j  n 

Jane  m!"';;;! 

Jnij    a.;."!"! 

JalT    IS 

Jmr  » 

Jalj   « 

Aopiitio."'!!; 

ADgnat  t4!!l!!. 

BapWmberK. .. 
eep'cnbN'll... 
SapUDiberlS... 

Octobtru!*"" 

Ho*nDber  1... 
Vonnbtr  9... 
Koyvaha  It... 
ll»nm'<M  n... 
HoTeobar  30.,, 
December  7  ... 
Dee  nber  14  ., 
Deoau'erll... 


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481,108     ii.n&ns 


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KJl^.'m  113,7M 

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K.I«T,1M         

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lfi,l«U'T         

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S,ieB.84B         


TH  R 


MERCHANTS'    MAGAZINE 


AHD 


COMMERCIAL     REVIEW 


FEBRUARY,     186  9, 


IIKFOIK  AND  NBW  TOSK  IK  PiST  TIIE8— WHf  ONE  fiSBW  AND  WET  THE 

OTHEK  DID  NBT  fiSOW  UNTIL  NOW 

BT  BODKRT  W.  HUGHES,  8B0RSTAR7  OF  THX  OONTXNTIOK. 

The  ConTention  just  beld  in  the  city  of  Norfolk  will  conetifcute  an 
6T60tfiil  epoch  in  her  commercial  history,  and  be  remairlEable  as  dividitijr 
aatagnaDt  past  from  a  prosperous  future.  A  day  of  brilliant  promis^i 
bss  dawned  upon  that  city ;  and  one  of  the  most  cheering  auspices  attend* 
iog  its  adrent  has  been  the  assembling  of  several  thousands  of  intelligent 
uid  enterprising  citizens  from  many  quarters  of  the  country,  to  aid  in 
promoting  the  high  destiny  to  which  she  aspires. 

The  occasion  naturally  suggests  a  retrospect  into  that  long  night  of 
monotony  and  non-growth  which  for  many  years  marked  the  career  oi 
Norfolk,  and  which  has  been  made  the  subject  of  constant  reproach,  not 
oolj  to  herself  bat  to  the  Commonwealth  of  Virginia.  It  is  a  task  at 
^y  as  it  is  grateful  to  vindicate  both  from  reflections  having  their  source 
in  ignorance,  or  prejudiced  disregard,  of  the  real  causes  which  have  de> 


82  KORVOLK  AND  KKW  YORK  IK  TIIIX8  PAST.        [February^ 

prtved  them  of  commercial  prosperitj,  and  which  have  had  no  reference 
to  the  character  for  industry  and  enterprise  of  the  people  of  either. 

As  indicating  the  sort  of  reproach  which  has  been  visited  upon  Virgi- 
nia, in  connection  with  the  non-growth  of  Norfolk,  the  following  passage 
is  quoted  from  a  recent  able  letter  of  an  influential  citizen  of  Southern 
Illinois,  the  Hon.  J.  B.  Turner,  in  which  he  urges  the  completion  of  that 
great  work,  the  James  River  and  Kanawha  Canal.    The  passage  is  this: 

"  Norfolk  WSB  always  the  nataral  outlet  of  the  oommeroe  of  the  contineot ;  tad 
had  it  not  been  blocked  op  by  want  of  local  enterprise,  woald  have  assiimed  that 
poeitioD  loD|^  ago,  instead  of  New  York.  Bat  it  was  for  a  time  blocked  up  bj  tbe 
peculiar  agricultural  intereets,  or  supposed  interests,  of  Virginia,  while  New  York 
dug  out  and  let  the  commerce  of  the  Weet  and  the  world  in ;  in  other  words,  New 
York  did  what  Chicago  and  the  Ncrth  are  now  dciop^ ;  they  woke  up  to  tbe  inevita- 
ble necessities  of  trade  and  commerce.  But  Virginia  did  what  Southern  Illinois  ii 
now  doing— she  went  to  sleep  and  doced  over  politics  and  partisan  triumph*,  and 
office-seeking  and  President  making,  and  discussed  all  imaginable  two-penny  issues 
oo  the  stump,  till  her  more  adroit  rival  ran  away  with  the  trade  of  the  world,  and 
the  crack  of  final  doom  be^an  to  resound  about  her  ears.  We  trust  that  she  will 
wake  up  now,  and  unite  with  her  Western  friends  in  securing  both  her  own  and  our 
mutual  interests." 

The  charge  is  hackneyed  enough.  It  has  been  in  the  mouth  of  friend 
and  foe  for  half  a  century.  But  the  reproach  is  undeserved.  New  York 
has  outstripped  Norfolk  in  trade,  population  and  wealth  by  the  operation 
of  causes  having  no  relation  to  the  character  of  the  people  of  the  respect- 
ive localities. 

HEW  TORK  HAS  HAD  THBSB  ERAS   OF  PROSPSRITT;    KORFOLK  BUT  ONE. 

The  history  of  Norfolk  presents  a  marked  contrast  with  that  of  the 
great  Northern  seaport.  Nlew  York  has  had  severaf  eras  in  its  corporate 
life.  It  hady  first,  the  colonial  or  jpraviticial  era,  when  it  enjoyed  no  trade 
except  from  the  narrow  region  of  country  between  the  seaboard  and  tbe 
mountains.  It  had  afterwards  the  canal  era,  when  the  great  Eiie  canal, 
constructed  over  a  route  which  opposed  not  a  single  mountain,  nor  even 
a  respectable  hill,  in  its  entire  conrse,  like  an  exhaustless  cornucopia, 
poured  a  mighty  volume  of  trade  into  the  lap  of  the  city.  And  then  it 
had  accumulated  upon  this  prosperity  from  the  canal, 

*•  ♦        ♦        ♦       ♦        like  another  morn. 
Risen  on  mid-noon,        ♦        »        »        ♦^»' 

its  era  oi  railroad  prosperity,  i^hen  railroads  came  to  be  constructed  par- 
allel with  the  canal,  to  hasten  the  transit  of  the  more  light  and  valuable 
commodities  of  commerce,  and  to  relieve  tbe  plethora  of  superabundant 
freights  which  were  gorging  the  canal  to  congestion. 

Norfolk  has  had  but  one  of  these  eras ;  that  is  to  say,  the  prouineial 
era — the  -era  during  which  she  has  enjoyed  only  the  trade  of  the  country 


1869J  NORFOLK  AKD  NXW  YORK  IK  TIMX8  PAST.  83 

east  of  the  mountains.  She  is  but  just  now  passing  beyond  that  pristine 
sts^  of  her  commercial  life ;  and  is  makiDg  her  advent  into  the  rtLilromd 
era,  daring  which  she  is  to  eDJoy,  besides  the  local  trade  that  has  been 
hers  for  a  long  time,  the  enriching  trade  from  the  great  region  of  country 
bejond  the  Alleghanies,  which  will  be  commanded  by  her  consolidated 
line  of  railroad,  reaching  now  with  a  long  and  powerful  arm  to  Memphis, 
and  destined  soon  to  reach  also,  by  another  and  stronger  arm,  by  its 
right  arm,  to  Louisville  and  St.  Louis.  But  Norfolk  will  not  have  re- 
ceived her  full  fruition  of  trade  and  of  prosperity  even  when  this  com- 
msndiDg  line  of  railroad,  though  directed  by  the  genius  of  Gen.  Mahone, 
ihall  have  done  its  utmost  in  her  behalf.  The  full  measure  of  her  great- 
ness will  not  be  reached  until  she,  too,  like  New  York,  shall  have  re- 
ceived a  mighty  volume  of  Western  trade  from  over  the  great  line  of 
water  transit|  between  West  and  East,  marked  by  the  route  of  the  James 
river  and  Kanawha  canal.  This  canal  is  necessary  to  the  completeness 
(^tbe  railroad  system  of  Virginia.  It  is  needed  for  carrying  bulky  min- 
erals and  heavy  products  of  agriculture,  at  rates  and  in  quantities  beyond 
the  capacity  of  railroads ;  relieving  the  railroads  of  the  unprofitable  and 
cumbrous  classes  of  transportation,  and  giving  that  volume,  quantity  and 
variety  to  the  trade  coming  to  our  seaport  which  .are  necessary  to  build 
it  up  to  the  dimensions  of  a  great  emporium.  And  this  canal  will  be 
completed.  Ere  many  years  from  now  the  friends  of  Norfolk  will  be  con- 
vocated  a  second  time,  not  merely  to  celebrate  the  success  of  her  railroad 
system,  but  to  celebrate  also  her  advent  into  the  most  important  era  of 
her  history — into  the  canal  era ;  when  the  favorite  and  long-cherished 
water-line  of  Virginia  shall  have  been  carried  through  the  mountains  to 
the  Ohio ;  and  shall,  as  a  second  inexhaustible  cornucopia,  be  pouring  an 
unceasing  current  of  trade  into  the  lap  of  the  Virginia  seaport 

THS  PROVINCIAL  FSBIOD. 

There  was  a  period  in  the  history  of  the  seaboard  cities  when  there 
was  no  West;  and  when  the  Alleghany  mountains  formed  the  frontier  of 
settlement  and  agricultural  production.  During  that  epoch  the  seaboard 
cities,  North  and  South,  grew  in  proportion  to  the  extent  and  fertility  o{ 
the  country  in  their  rear  ;  and  as  Maryland,  Virginia,  the  Carolinas  and 
Georgia  were  more  productive  in  staples  valuable  to  commerce  than  the 
colonies  north  of  them,  the  cities  of  Baltimore,  Norfolk,  Charleston  and 
Savannah  eojoyed  a  greater  trade  and  experienced  a  larger  growth  than 
those  on  the  northern  seaboard. 

There  was  another  cause  which  then  operated  to  restrict  the  growth  of 
all  our  seaboard  cities,  to  the  resources  of  the  country  back  of  them.  The 
navigation  laws  of  the  mother  country,  which  were  designed  to  suppress 


84  KORFOLK  AHD  Nxw  YORK  UT  TiMKB  PAST.        [February^ 

all  commeroial  enterprise  in  the  colonies,  and  to  confine  tbeir  indnatry 
to  agriculture,  had  the  effect  of  giving  more  rapid  development  to  South- 
ern cities,  having  an  ezteusive  and  productive  back  country,  cultivated  by 
numerous  slaves,  than  to  Northern  cities,  which  stood  in  front  of  a  coun> 
try  incapable  of  growing  the  exportable  products  of  agriculture,  where  the 
climate  was  more  rigorous,  and  the  number  of  laborers  more  restricted. 
At  a  time  when  there  was  no  West ;  during  a  period  when  each  city  had 
no  country  tributary  to  it  but  the  narrow  slope  east  of  the  mountains . 
and  while  England  was  enforcing  laws  hostile  to  colonial  commerce,  it 
was  natural  that  the  Southern  cities  of  the  seaboard  should  oatetrip 
Northern  cities  in  a  mere  provincial  prosperity  and  importance. 

But  a  new  class  of  influences  began  to  operate  at  the  close  of  the  revo- 
lutionary war.  It  is  hardly  necessary  to  say  that  the  period  of  that  war 
was  a  blank  in  commerce  and  commercial  growth.  Nor  did  there  occur 
any  physical  event  having  the  effect  to  open  up  to  the  seaboard  cities  a 
wider  extent  of  back  country  than  that  lying  east  of  the  Appalachian 
chain,  until  after  the  close  of  the  second  war  with  Great  Britain.  There 
were  political  causes,  however,  which  operated,  during  this  period,  to  the 
advantage  of  Northern,  and  to  the  disadvantage  of  Southern  cities.  For 
six  years  after  the  Revolution  the  several  States  were  at  liberty  to  provide 
for  their  public  indebtedness  by  levying  duties  upon  foreign  commerce. 
The  Southern  States,  and  probably  all  the  Northern  States,  except  New 
York,  made  use  of  this  expedient,  and  laid  import  duties  on  their  foreign 
trade.  But  the  City  of  New  York  remained  a  free  port  during  all  that 
period,  attracting  a  larger  trade ;  and  thus  obtained  an  advantage  over 
other  cities,  in  the  infancy  of  American  commerce,  which  it  never  lost 

Then  occurred  the  great  wars  of  Europe,  in  which  every  one  of  the 
Powers  was,  more  or  less,  constantly  involved.  Tbeir  effect  was  to  make 
American  shipping  and  American  seamen  common  carriers  for  the  whole 
world.  But  the  Southern  people,  who  had  been  exclusively  agricultural, 
for  a  century  before,  derived  little  advantage  from  this  state  of  affaire. 
The  advantage  fell  to  those  portions  of  the  American  population  which 
had  inhabited  regions  unfavorable  to  agriculture,  and  who  had  been 
obliged  to  depend  upon  sea-faring  occupations  for  support.  It  was  the 
fishermen  of  New  England,  and  the  mariners  of  New  Jersey  and  nether 
New  York  who  became  common  carriers,  in  vessels  sailing  under  the 
American  flag,  for  the  militant  nations  of  Europe.  New  England  especi. 
ally  bad  been  chiefly  settled  from  the  Eastern  and  Southern  counties  of 
Qld  England,  from  a  population  that  had  followed  the  seas  /or  many  gen- 
erations. It  is  claimed  by  the  native  historians  of  New  England,  that  the 
passengers  on  the  Mayflower,  and  other  emigrants  who  landed  at  Plymouth, 
Salem  and  Boston.^  came  across  the  ocean  for  the  sentimental  purpose  of 


18GI1  HORTOLK  AND   NSW  TORX  IS  TI1UB8  PAST.  85 

MCoriDg  civil  and  religious  freedom ;  but  cotemporaDeoui  history  impar- 
tially studied,  teaches  the  fact  that  they  came  for  the  sensible  and  practi- 
cal object  of  pursuing  their  hereditary  avocation  of  catching  fish  ;  which 
tbey  did  in  the  far-famed  and  inviting  waters  off  Cape  Cod  and  Newfound* 
laod,  near  which  they  settled.  Even  if  they  had  come,  however,  on  a 
religious,  and  not  on  a  practical  errand,  it  is  certain  that  they  did  enter 
largely  into  the  business  of  fishing  for  cod  and  whale  in  the  waters  of  the 
North  Atlantic,  They  thus,  in  the  course  of  years,  became  accomplished 
rosriners.  They  did  not  confine  themselves  to  the  fisheries.  They  engaged 
largely  in  the  coasting  trade  of  the  Continent  and  the  West  Indies ;  and 
they  exleoded  their  enterprise  to  the  shores  of  Africa,  doing  an  active 
trade  and  amassing  great  capital  in  the  dark  business  of  the  "  middle  pas- 
sage.^ Accordingly,  when  the  great  wars  of  Europe  broko  out,  in  the 
first  decade  of  the  present  century,  they  were  prepared,  by  education  and 
sod  habits,  to  enter  extensively  into  the  carrying  trade  of  the  world,  and 
made  large  profits  by  their  enterprise ;  gaining  a  capital  which  power- 
fully stimulated  the  growth  of  Boston  and  New  York  through  all  their 
after  history.  These  two  cities  were  the  principal  beneficiaries  of  the 
impulse  thus  imparted  to  the  shipping  of  the  Northern  States,  and  the 
augmentation  thus  given  to  their  capital  by  the  wars  of  Napoleon.  The 
agricultural  South,  however,  made  no  gain  from  those  calamitous  conflicts 
of  mankind. 

But  aside  from  these  maritime  circumstances,  Boston  and  New  York  en- 
joyed another  advantage  over  Norfolk.  Four  of  thn  New  England  States 
concentrated  their  trade  upon  Boston ;  the  rest  of  New  England,  and  New 
York  and  New  Jersey  combined  in  supporting  New  York.  But  Norfolk 
^led  to  command  even  the  undivided  trade  of  Virginia.  She  failed  to 
do  so  for  causes  which  were  lucidly  detailed  in  1857  by  Gov.  Wise,  in 
his  well-remembered  letter,  on  direct  trade,  to  M.  Lacouture,  in  the  fol- 
lowing passages : 

**  Looking  at  the  map  of  Virginia,  you  tee  the  whole  Atlantic  low-lands  watered 
^y  the  Potomac,  the  Rappahanoock  the  Piankatank,  the  rivers  of  Mobjack  Bay,  the 
York,  the  James,  and  the  Boanoke ;  streams  rising  in  the  arreat  Appalachian  chain  of 
mooDtaios,  and  running  a  few  miles  only  apart  from  each  other  in  parallel  lines,  from 
West  to  East,  and  all  of  them,  except  the  last,  emptying  into  the  grand  reservoir  of 
tl«  Cbenpeake  Bay,  which  entirely  euta  off  the  main  astern  peoiosnla.  Thas  all 
the  eastern  and  first  settled  part  of  the  territory  was  found  naturally  divi  led  mto  no 
Ins  than  seven  distinct  peninsulas,  separated  from  each  other  by  eight  considerable 
kodies  of  navigahle  waters.  Up  all  these  streams  the  t  nnage  of  Great  Britain 
etme  sod  found  facilities  for  shipmenteverywhere,  deep  water,  wharfage,  accessibility 
to  luriKatioo  up  to  the  very  stepe  of  the  Blue  Ridge  of  the  Alleghanies. 

**  This  also  tended  to  diflrase  population  and  capital,  and  prevented  the  concentre- 
tioB  of  eiiher  at  any  one  point  to  ^m  a  city  for  purposes  of  commerce.  Every 
paotation  Ibnnd  a  landing  at  its  own  fields,  or  near  its  neighborhood,  and  but  a  ship 
losd  had  to  be  collected  at  any  one  loeility ;  such  was  the  convenience  to  and  from 
ma-ketof  the  earliest  settlements  in  ESastern  Virginia. 

**  A.gain,  when  popuUtioo  moved  Westward,  it  crossed  the  Blue  Bidge  mountains 


86  KOBFOLK   AND   KSW  YORK   IN  TI1IS8  PAST.  [FebrUUfyf 

into  a  rich  and  beaatiful  valley,  rcmDiDg  North  and  S«Qth,  which  has  do  natural  oatlet 
tut  at  its  Dortbem  termicut  in  onr  limits,  and  it  bad  to  poor  ita  prodncts  oot  of  onr 
marts  into  those  of  the  adjoiniDg  State  of  Maryland,  at  the  head  of  Chesapeake 
B&y.  And  when  it  crresed  the  next  and  parallel  ridges  of  the  Alleghanies,  it  settled 
upon  livers  flowing  westward  into  the  great  basin  of  the  Miseiesippi,  and  had  to  e«od 
its  prodncts  by  the  Monongahela,  and  Uie  Onyaodotte,  and  the  two  Kanawbaa,  and 
the  Sandy,  to  float  on  the  Ohio,  to  build  ap  Pittsburg  and  Cincinnati  and  New  Orleans 
"-cities  of  Pennsylyania,  Ohio  and  Louisiana. 

**  I'bns,  by  geographical  and  geological  cause,  were  onr  people  aesregated  with 
separate  communities,  and  divided  from  each  other  and  all  matoal  commercial 
dependency." 

TBS  KRIS   CANAL    ADTAN0E8   NKW  YORK    INTO  HXB  8B0OND  BBA   OF 

PROBPBRITY. 

It  is  DOW  time  to  speak  of  the  circumstances  which  enabled  New  York 
soon  after  the  second  war  with  Great  Britain,  to  enter  a  second  epoch  in 
her  career,  that  in  which  she  was  enabled  tc  draw  to  herself  a  vast  trade 
from  the  West  This  she  has  been  doing  forty  years,  while  Norfolk  is 
but  just  beginning  to  command  trade  from  that  prolific  quarter  at  the 
eleventh  hour. 

While  much  too  little  attention  is  given  in  our  schools  to  the  study  of 
geography,  none  at  all  is  given  to  that  of  topography.  Mountain  ranges 
are,  indeed,  laid  down,  but  nothing  is  taught  of  those  grand  features  of 
continents  which  give  rivers  their  course^  fix  the  great  channels  of  trade* 
and  determine  the  industries  and  the  character  of  populations.  Really 
and  practically,  the  earth's  surface  is  taught  to  be  "  flat  ;^  and  so  gross  is 
the  popular  ignorance  of,  or  inadvertance  to,  the  topography  of  our  own 
country,  that  even  now  it  is  the  current  opinion  in  the  United  States  that 
Virginia  conld,  if  she  had  possessed  a  proper  enterprise,  have  constructed 
a  canal  across  the  numerous  ranges  which  constitute  the  Alleghany 
mountains,  on  the  line  of  the  James  and  Kanawha  rivers,  where  the  low- 
est of  several  summits  to  be  surmounted  is  two  thousand  feet,  as  expedi- 
tiously and  as  cheaply  as  New  York  constructed  the  Erie  canal,  across 
the  level  country  which  stretches  from  the  Hudson  River,  by  impercep- 
tible ascent,  to  the  banks  of  Lake  Erie,  over  levels  which  never  reach  the 
height  of  the  surface  of  the  waters  of  that  lake,  except  until  approaching 
its  banks.  What  could  be  more  unjust  than  a  popular  opinion  which 
assumes  that  the  Switzerland  of  our  continent  affords  as  inviting  a  field 
for  the  construction  of  canals  as  its  Holland  ? 

It  must  not  be  forgotten  that,  in  the  infancy  of  internal  improvementa  on 
this  continent,  canals  were  long  deemed  the  only  practicable  means  of  out- 
let for  Western  trade ;  and  that  railroads  were  not  brought  into  efficient 
success  until  late  in  the  decade  of  1830-40.  The  sequel  has  proven  that 
railroads  may  be  carried  over  any  degree  of  elevation  ;  but  it  would  have 
been  a  bold  engineer  who  would  then  have  held  that  canals  could  be 


1869J  VORjrOLK  and  NXW  TORK  IH  TIICSS  PJLBT.  87 

ooDstructad  acrots  the  Appalaefaian  chaia  on  any  route  that  might  be  pre- 
ferred by  Gommerce. 

Tet  is  a  fact  that  YirgiDia  formed  the  determination  to  construct  a 
caoai  across  the  mountains  in  her  territory,  at  about  the  same  time  that 
New  York  began  to  make  a  canal  across  the  level  plateau  of  country 
which  stretches  out  between  the  Hudson  and  Niagara  rivers*  The  task 
of  New  York  was  as  easy  as  that  of  Virginia  was  difficult^  The  surface  of 
Like  Erie  is  only  fire  hundred  and  sixty-four  feet  above  tide-water,  and, 
except  the  elevation  forming  its  eastern  shore,  is  higher  than  any  of  the 
ground  between  the  Lake  and  the  Hudson  river.  Between  the  Seneca 
sod  the  Mohawk  rivers,  a  plateau  of  country  extends  for  sixty  miles, 
slong  which  not  a  single  lock  was  required  in  constructing  the  canal. 
Nothing  was  needed  to  be  done,  in  &ot,  but  to  cut  through  the  eastern 
ihore  of  the  lake,  and  lead  the  outflowing  waters  down  along  a  gradually 
deseending  country  to  the  sources  of  the  Mohawk,  and  with  the  course  of 
that  stream,  to  the  Hudson.  So  favorable  was  the  topography  of  the 
roate  that  the  cost  of  making  this  channel,  three  hundred  and  sixty-three 
miles  long,  was  estimated  at  only  $5,000,000,  and  did  not  actually 
exceed  17,000,000,  on  the  plan  on  which  the  canal  was  first  com. 
pleted.  Was  it  a  very  great  venture,  and  did  it  furnish  evidence  of 
soy  extraordinary  enterprise  in  the  people  of  New  York  to  under- 
take a  canal  that  was  at  so  small  a  cost  of  capital  and  labor  to  sup- 
ply the  only  outlet  for  the  commerce  of  the  great  Lakes.  The  trade  of 
that  Lake  valley  was  dammed  up  by  the  high  cliff  which  occasions  the 
Falls  of  Niagara.  The  question  whether  the  canal  should  be  made,  was 
simply  the  question,  whether  New  York  would  invest  in  an  interest  pay- 
ing enterprise  five  millions  of  dollars  for  the  trade  of  a  vast  country,  which 
ibe  believed  would  become,  and  which  has  become,  the  granary  of  the 
world.  The  wonder  was,  not  New  York  acted  so  early  as  she  did,  but 
that  the  canal  was  not  made,  on  so  easy  a  route,  long  before  it  was 
actually  constructed.  Steam  navigation  had  been  successfully  applied  on 
the  Lakes  and  the  Western  waters  as  early  as  1817  ;  and  yet,  the  Erie 
canal  was  not  completed  until  the  Fall  of  1825.  This  canal  was  neces- 
^ly  to  be  the  only  outlet  for  a  great  triangle  of  country,  embracing  the 
Valley  of  the  Lakes,  the  valley  of  the  upper  Mississippi,  and  the  valley  of 
the  Ohio.  The  moment  that  trade  began  to  find  an  artificial  outlet  from 
Lake  Erie  to  the  Hudson,  that  moment  were  canals  across  the  low  divides 
between  the  waters  of  Lake  Etie  and  the  Ohio,  and  Lake  Michigan  and 
the  Upper  Miasissippi,  undertaken.  It  required  lockages  of  only  five 
hundred  and  uxty-nine  feet  to  reach  the  elevation  of  Lake  Erie  from  the 
Hudson ;  between  Lake  Erie  and  the  Ohio,  the  elevation  to  be  surmount- 
ed wsft  only  nine  hundred  and  fifty  feet ;  while  that  between  Lake  Michi- 


88  BOBVOLK  AND  KBW  TOUC  HT  TXMBB  PlBT.  f  JVirtfOfyi 

gan  and  the  His&ifsippi  was  only  six  hundred  and  ten  feet  New  York 
plainly  taw  that,  by  first  constructing  her  own  canal,  and  then  aiding  the 
States  of  Ohio,  Indiana  and  Illinois  in  constructing  other  canals  OTer  these 
easy  summits,  she  would  obfiftin  command  of  the  trade  of  a  country  em- 
bracing half  a  million  of  square  miles,  as  fertile  as  the  Delta  of  the  Nile. 
While  New  York  had  only  these  three  inconsiderable  summits  to  sur- 
mount, in  order  to  reach  beyond  the  Lukes  to  the  Mississippi  and  the 
Ohio ;  what  were  those  which  Pennsylvania,  Maryland  and  Virginia  had 
to  overcome  in  simply  reaching  the  Ohio!  Pennsylvania  had  a  range  of 
mountain  country  seventy  miles  in  breadth  to  penetrate  with  her  canali 
and  a  summit  of  one  thousand  eight  hundred  and  ninety-nine  feet  to  sur- 
mount with  locks,  Maryland  had  a  series  of  mountain  ranges  a  hundred 
miles  broad  to  traverse,  and  a  summit  level  of  three  thousand  seven  hun- 
dred and  fifty  four  feet  to  lift  her  canal  over.  Virginia  had  a  like  series 
of  elevations,  a  hundred  miles  in  breadth,  to  cross,  and  a  summit  of  two 
thousand  feet  to  overcome. 

Yet,  nothing  daunted  by  barriers  which  would  be  appalling  even  to  the 
enterprising  spirit  of  our  own  time,  these  States  went  boldly  forward  with 
their  respective  canals.  Pennsylvania  spent  $20,000,000  in  making  a 
water-line,  broken  by  inclined  plains  and  pieced  by  portages  ;  and  found 
her  treasury  bankrupted  before  she  could  succeed  in  accomplishing  its 
completion.  Maryland,  aided  by  Virginia,  spent  some  ten  millions  of 
dollars  on  the  Chesapeake  and  Ohio  canal,  in  carrying  it  no  farther  than 
the  foot  of  the  Alleghanies,  and  then,  dismayed  by  the  difficulties  still  be- 
fore her,  gave  up  the  waterline,  and  devoted  her  resources  to  the  Balti- 
more and  Ohio  railroad.  Virginia  undertook  her  canal  as  courageously 
as  the  rest ;  and,  afler  spending  $12,000,000,  found  she  had  carried  it  only 
to  the  western  base  of  the  Blue  Ridge.  The  works  in  which  these  three 
States  had  been  engaged  were  so  arduous,  expensive,  and  tedious,  that,  be- 
fore they  could  be  completed,  the  grown ing  preference  for  railroads,  and 
the  success  of  those  works,  produced  a  division  of  popular  sentiment  on 
the  subject  of  the  pioper  improvements  to  be  constructed,  and  caused  a 
suspension  of  the  canals.  Owing  to  the  favorable  route  enjoyed  by  New 
York,  and  the  rapidty  with  which  the  Erie  canal  was  constructed.  New 
York  had  completed  her  great  work  before  the  popular  preference  for 
railroads  had  supervened  to  suspend  that  work.  She  pushed  it  through 
to  early  completion ;  secured,  also,  the  construction  of  the  Ohio  and 
Illinois  canal ;  and  thus  completed  a  grand  system  of  inland  navigation 
reaching  more  than  a  thousand  miles  into  the  heart  of  the  West,  before 
being  called  on  to  embark  in  railroad  enterprises.  Pennsylvania,  Mary- 
land and  Virginia  were  forced  to  change  their  system  of  improvements, 
afler  having  crippled  tkeir  finances  on  un6nished  canals ;  and  to  engage  in 


1869]  iroivoLK  AVD  mew  tors  nr  niiis  past.  89 

Che  oonstrnction  of  railroads,  without  the  aid  of  the  trade  which  had  been 
expected  from  the  canals.  What  they  lost,  especially  what  Virginia  lost, 
bj  failing  to  complete  their  lines  of  continuous  canal,  is  best  shown  by 
describing  the  effect  upon  New  York  of  the  completion  of  the  Erie  cinaL 
The  Superintendent  of  the  Census  justly  comments  upon  the  momentous 
eTent,  as  follows : 

"The  opening  of  this  work  was  the  commencement  of  a  new  era  in  the 
interasl  grain  trade  of  the  United  States.  To  the  pioneer,  the  agricul- 
torist,  and  the  merchant,  the  grand  avenue  developed  a  new  world. 

_  • 

From  that  period  do  we  date  the  rise  and  progress  of  the  Northwest,  as 
well  ss  the  deyelopment  of  the  internal  grain  trade."  And  Professor  De 
Bow,  alluding  to  the  effect  of  this  canal,  graphically  declared,  that,  ^*the 
bold,  vigorous,  and  sustained  effort  of  the  North  has  succeeded  in  rever- 
ang  the  very  law  of  Nature's  Gk>d,  rolled  back  the  tide  of  the  MiesiBsippi 
snd  its  ten  thousand  tributary  streams,  until  their  mouths,  practically  and 
commercially,  are  more  at  New  York  than  New  Orleans. 

The  effect  was,  indeed,  to  give  another  mouth  to  the  Mississippi.  It 
opened  to  market  a  vast  region,  which  otherwise  could  have  presented  but 
limited  attractions  to  immigration.  The  fact  that  the  high  Lnke  country, 
of  bleak  climate  and  rigorous  winter,  has  undergone  a  more  rapid  develop- 
ment than  any  part  of  the  West,  is  due  to  the  Erie  canal.  It  brought  that 
country  within  readier  and  cheaper  access  to  market  than  any  other  por- 
tion of  the  West  The  long  and  tortuous  channel  of  the  Mississippi  river, 
the  dangers  of  the  Gulf  and  coast  navigation,  and  the  damaging  effects 
upon  grain  of  the  hot,  humid  climate  of  New  Orleans,  rendered  the  Lake 
ronte  preferable  to  that  of  the  river  and  Gulf,  even  for  the  trade  of  locali- 
ties which  would  otherwise  have  preferred  the  southern  direction.  On 
the  other  hand,  the  Falls  of  Niagara,  the  rapids  of  the  St.  Lawrence  river, 
sod  the  fogs  of  the  St.  Lawrence  gulf,  frightened  trade  away  from  that 
line  of  ice  and  storms,  and  drove  it  into  the  Erie  canal.  The  completion 
of  that  work,  and  of  its  auxiliary  canals  in  Ohio,  Indiana  and  Illinois,  was 
followed,  in  a  few  years,  by  railroads  parallel  to  them.  These  roads  were 
all,  m  the  first  instance,  constructed  as  feeders  to  the  Erie  canal ;  which 
wss  the  parent  work  and  grand  trunk  line  of  the  whole  system.  After 
the  system  of  canals  and  railroads,  of  which  the  Erie  canal  was  the  base, 
had  stimulated  an  unprecedented  development  of  population  and  produc- 
tion in  the  West,  the  Erie  canal  was  found  incapable  of  discharging  the 
immense  trade  which  it  had  created ;  and  then  it  became  necessary  to 
wlarge  its  capacitv,  and  to  construct  as  many  auxiliary  works  as  possible, 
at  d-fferent  distances,  parallel  with  it.  Hence  the  New  York  Central, 
the  New  York  Erie,  the  Pennsylvania  Central,  and  the  Baltimore  and 
Ohio  railroads.    But  it  may  be  said  with  truth,  that^  but  for  the  stimulus 


00  Hourouc  AVD  raw  tobk  nr  tuubb  fast.        [/Vftmory, 

fiven  to  production  in  the  Northwest  by  the  Erie  canal,  these  great 
works  would  not  have  become  necessary  for  many  years;  and  bat  for  the 
capital  and  credit  created  by  the  trade  of  the  Erie  canal,  the  means  for 
building  these  costly  railroads  could  not  have  been  obtaiued  at  all. 

Thus;  did  the  completion  of  the  Erie  canal  decide  the  question  of  com- 
mercial supremacy,  for  at  least  a  century,  in  &vor  of  New  York.  Until 
that  event,  even  Philadelphia  was  the  more  populous,  more  wealthy,  and 
more  flourishing  city  of  the  two.  But  as  soon  as  the  canal  began  to  pour 
its  immense  trade  into  the  warehouses  of  Manhattan  Island,  New  York 
began  to  bound  forward  fn  every  department  of  successful  commerce. 
Its  receipts  of  products  from  the  West  began  to  be  counted  by  nullions 
of  tons,  and  its  imports  and  exports  to  be  valued  by  hundreds  of  millions 
of  dollars  per  annum. 

Such  were  the  advantages  which  New  York  gained  by  the  timely  com- 
pletion of  her  canal ;  such  the  advantages  which  Virginia  lost  by  failing 
to  complete  her  similar  work,  in  consequence  of  the  difficultiea  of  the 
route.  The  well-grounded  appreciation  of  railroads  which  gradually  grew 
into  a  railroad  mania,  while  Virginia  was  yet  manfully  toiling  at  her 
great  labor,  operated  for  several  years  to  t^im  public  &vor  away  from 
artificial  water-lines  of  transportation.  The  Virginia  canal,  owing  to  the 
great  cost  of  the  work  (which  is  now  estimated,  for  the  entire  line  when 
finished,  at  $52,000,000),  did  not  reach  completion  before  the  railroad 
fever  had  taken  possession  of  the  public  mind ;  and  it  has  had  to  look  for 
its  consummation  to  that  returning  appreciation,  which  is  now  again  felt 
in  behalf  of  cheap  water  transportation.  It  offers  now  a  channel  of  transit 
between  East  and  West  shorter  than  any  other,  cheaper  and  more  central 
than  any  other,  and  which  will  be  more  free  than  any  other  from  obstruc. 
tions  arising  from  climate  or  a  public  enemy.  When  that  canal  is  con- 
structed, we  shall  have  broken  the  back-bone  of  the  obstacles  which  nature 
has  so  long  interposed  against  the  prosperity  of  Virginia,  and  against  the 
advancement  of  Norfolk  to  the  first  rank  among  the  cities  of  the  world. 

But  a  brighter  day  is  already  dawning  for  Norfolk  and  Virginia.  For 
many  years  the  cheapness  of  transportation  on  the  Eire  canal  gave  a  per- 
manently Northeastward  tendency  to  the  trade  of  the  whole  West,  aboTs 
the  parallel  of  St.  Louis.  But  the  perfection  to  which  railroad  construc- 
tion has  been  brought,  and  the  increasing  cheapness  and  rapidity  of  rail, 
road  transportation,  have  given  to  Western  trade  a  strong  and  growing 
tendency  to  cross  the  country  on  lower  latitudes  snd  shorter  routes. 
Hence  the  vast  buuness  that  has  sprung  up  on  the  Pennsylvania  roads, 
on  the  Baltimore  and  Ohio  road,  and  on  oujr  own  Norfolk  and  Memphu 
line  of  road ;  and  hence  the  earnest  solicitude  which  is  expressed  by  the 
public  for  the  completion  of  our  connection  from  Bristol  to  Louisviilci 
and  for  the  making  of  the  projected  road  from  the  Ohio  River  to  Richmond* 


1869]  NOB70LK  AHD   VVW  TORE  IN  TIMI8  PAST.  01 

Hie  growiog  preference  of  Western  trade  is  for  Southern  lines ;  not 
odIj  becaase  they  are  more  exempt  from  the  froata  of  the  Northern  cii- 
mate»  hot  because  they  are  on  the  shortest  routes  from  the  centres  of 
Western  production  and  population,  to  the  centre  of  the  Amerioan  sea- 
board. It  is  this  tendency  of  trade,  it  is  this  necessity  of  trade,  that  has 
80  powerfully  turned  public  attention,  of  late,  to  Norfolk  as  a  great  seaport 
city,  and  given  so  much  credit  to  the  lines  of  improvement  proposed  for 
eoDnecting  the  great  Virginia  seaport  with  the  leading  cities  in  the  central 
WesL  Norfolk  has  got  through  her  period  of  monotony  and  non-growth • 
That  day  has  closed  forever ;  but  it  has  closed  in  brilliant  promise. 

"  The  weary  son  hath  had  a  golden  Mt 
And  by  the  brigiit  track  of  its  fiery  car 
Gives  token  of  a  goodly  day  to-morrow." 

WHAT   PSNKeTLYAiriA   GOAL  HAS  DONS   JOR  KSW  TOBK. 

Mention  must  also  be  made  of  another  most  important  element  in  the 
prosperity  of  New  York :  In  1825,  the  yery  year  of  the  completion  of  the 
Erie  canal,  the  coal  fields  of  Pennsylvania  came  into  use,  affording  to  the 
two  cities  near  them  cheap  fuel  for  domestic  use,  cheap  fuel  for  manufac- 
taring  enterprise,  cheap  fuel  for  propelling  the  machinery  employed  on 
their  railroada  and  river,  coasting  and  ocean  steamers ;  cheap  fuel  for 
driving  the  vaat  machinery  used  in  their  manifold  departments  of  varied 
industry.  The  coal  beds  of  Pennsylvania,  lying  in  close  proximity  to 
New  York,  have  contributed  full  as  much  to  its  growth  as  even  the  trade 
of  the  Weat*  This  element  of  power,  wealth  and  prosperity  has  always 
been  wanting^  to  Norfolk.  It  will,  ere  long,  be  supplied  in  unlimited 
ibondancy,  asd  at  the  cheapest  prices,  by  the  extension  of  the  James 
River  and  Kanawa  waterline — a  work  not  second  in  value  to  any  enter- 
prisB  whatever — not  inferior  in  importance  to  the  Pacific  railroad,  or  to 
the  Erie  canal,  or  to  the  navigation  of  the  Mississippi  river  itself,  or  to 
the  Atlantic  cable,  or  to  the  great  canal  of  Suez,  or  to  the  ship  canal 
whirJi  is  to  be  cut  through  volcanic  Cordilleras  across  the  Isthmus  of 
Darien,  or  to  any  undertaking  ever  projected,  in  any  age,  on  the  habitable 
globe. 

TIHXm  OF     THB    OOKAV    PASSAOBS,  BBPORB   THB  ERA   OT    OOBAN   BTlAlf 

KAYIOATION. 

Looking  from  the  land  to  the  ocean,  refereuce  must  now  be  made  to 
the  maritime  phenomena  which  tended  to  make  New  York  the  great 
port  of  entry  and  clearance  for  the  mercantile  marine  of  this  continent. 
These  are  best  eiplained  in  the  language  of  distinguished  writers  whose 


iroRroLK  AKD  9BW  TORS  19  TX1CK8  PAfiT.        [Fehruonff 

opinions  are  of  the  higheBtautfaority  on  thii  subject.  The  following  sen* 
tences  are  taken  from  the  able  and  suggestive  letter  of  Got,  Wise  to  M, 
Lacouture,  already  referred  to.  He  says :  *^  A  great  oceanic  cause  eom- 
pelled  the  concentration  of  commerce  at  New  York,  as  long  as  «at/!f  bsTS 
been  the  motors  of  the  sea.  The  icebergs  of  the  Arctic,  and  the  trsds 
winds  of  the  Tropics,  and  the  Gulf  stream,  have  made  currents  of  sir 
and  water  so  defined  in  their  course  and  limits,  that  whether  a  ship  sail 
from  Florida  Gape  or  Barnaget,  from  Ghesapeake  Bay  or  Newfoundland 
Banks,  she  has  to  take  the  same  offing  and  pursue  the  same  track  over 
the  seas,  to  make  the  quickest  trip  to  Liverpool  or  Havre.  If  she  veen 
a  fraction  of  a  degree  too  far  North,  she  is  in  mists  and  storms  and 
floating  ice ;  and  if  too  far  South,  she  is  in  baffling  currents  of  air  and 
water,  to  delay  and  endanger  her  passage.  The  great  turnpike  oyer  the 
the  Atlantic  is  about  a  degree  and  a  half  in  breadth,  with  New  York  at 
the  western  and  Liverpool  at  the  eastern  end  of  the  way.  The  laws  of 
insurance  and  time,  in  trade,  made  New  York  the  importing  and  export- 
ing pdint  of  the  Atlantic  front  of  the  American  continent,  until  steam 
has  interposed  to  defy  baffling  airs  and  currents.  A  steamship  can  now 
lay  straight  across,  south  of  the  old  sailing  line,  in  latitudes  compara- 
tively much  safer,  from  Norfolk  better  than  New  York.  But  I  am  speak- 
ing of  the  past ;  and  in  the  past  there  was  no  competition  from  this 
cause  with  New  York.*^ 

In  corroboration  of  these  lucid  and  sound  views  of  this  luminous 
statesman  of  Virginia,  the  following  extract  is  also  adduced,  from  an  in- 
teresting letter,  recently  addressed  to  the  writer  by  the  highest  of  all 
authorities  on  maritime  questions,  Commodore  Maury,  In  the  course 
of  his  letter,  this  eminent  man  says  : 

"The  chart  of  the  North  Atlantic  ooeaD  conttmcted  in  the  Tower  of  Loodooby 
old  CaptAiD  Folger,  fer  Dr.  Franklin,  had  the  effect  i  f  toroiDg  trade  from  Cbarleetcn 
and  ports  South,  to  New  York  aod  ports  North.  It  marked  the  cooree  of  the  Oulf 
Stream,  taught  navigators  how  to  avoid  the  force  of  the  carreoti  one  way,  and  to 
take  advantage  of  them  the  other. 

"  Moreover,  in  those  days,  vessels  app'-oachiog  the  offings  of  New  York  aod  other 
Northern  porta,  were  often  met,  as  tbey  are  now,  by  Northwest  snow  storms.  In 
■n  b  cases,  then,  they  ran  down  to  the  ports  of  tbe  Siouth  to  get  thawed,  spend  the 
winter,  and  wait  till  spring  or  summer  before  making  another  attempt  to  enter. 
From  thu  chart  they  learned  how,  by  running  off  a  fe  ^  miles,  thi>y  might  enter  the 
warm  waters  of  the  i^nlf  Stream,  there  wait,  and  so,  as  aoon  as  the  gale  abated, 
*try  again.' 

**  Thus  Charleston  and  Norfolk  ceased  to  be  half  way  booses  between  New  and 
Old  England." 

Thus,  there  is  a  double  tendency  of  trade  to  pursue  lower  lines  of 
latitude  than  New  York,  both  on  tea  and  on  land,  in  its  transit  from  the 
great  trade  centres  of  our  own  continent  to  the  markets  beyond  the 
Atlantic.  Hence  it  is  that  Norfolk,  both  from  the  ocean  side  and  from 
the  interior  country  is  becoming  in  public  estimation  a  leading  point  in 


1869]  KORFOKX  AITD  VSW  YORK  ZV  TZMia  FAST.  98 

the  great  moveiDent  of  the  world's  trade.  It  needs  only  that  she  shall 
perfect  her  railroad  coDoections  with  Ohio,  the  Mississippi,  and  the 
Pacific ;  that  the  great  Yirgioia  canal  shall  be  completed  to  the  West  • 
sod  that  she  shall  build  up  a  steam  marine  proportioned  to  the  magni- 
tode  of  the  interests  tending  to  centre  in  her  noble  harbor — to  become 
in  s  few  years,  second  only  to  New  York  among  the  cities  of  this  hemii j 
phere,  and  in  the  course  of  time  prominent  among  the  first  eities  of  the 
world  in  wealth,  population,  capital  and  commerce. 

snrxoTs  or  ths  late  war. 

Last  among  the  leading  causes  which  have  tended  to  retard  the  progress 
of  Norfolk  and  Virginia,  whilst  stimulating  the  prosperity  of  New  York 
and  tha  North,  must  be  mentioned  the  Ute  war.  It  found  Virginia  with 
SD  unfinished  water-line,  a^d  with  a  considerable  aggregate  length  of 
railroads  whicb  were  laid  out  without  system,  inharmonious  in  plan  and 
action,  and  depressed  in  their  finances.  The  war  wore  out  and  destroyed 
the  railroads,  leaving  them,  at  its  close,  physically  prostrated  and  bank 
rapt  in  ciedit.  How  different  was  the  effect  of  the  conflict  upon  the 
pobllc  works  of  the  North  I  It  threw  upon  their  railroads  a  vast  busi- 
ness; it  poured  immense  earnings  and  receipts  into  their  coffers ;  and  it 
left  many  of  them  the  richest  and  most  powerful  corporations  in  the 
world. 

Bat,  even  the  disasters  of  defeat  and  subjugation  did  not  dismay  our 
people.  In  the  midst  of  the  desolation  which  the  war  had  spread  over 
ber  whole  surface,  Viiginia,  with  bold  heart,  addressed  herself  to  the  task 
of  repair  and  restoration.  Happily  for  Norfolk,  there  was  a  man  of  the 
Southside  as  bold  of  heart  and  resolute  of  purpose  as  the  great  Commoc- 
wealth  of  which  he  is  a  &vorite  son.  The  heavy  business  which  uow 
pours  into  this  city  over  a  line  of  railroad  which  three  years  ago  was  in 
ruins,  is  literally  the  creation  of  the  genius  and  energy  of  this  one  man. 
Here  is  the  sort  of  one-man  power  which  we  may  admire,  cherish  and 
promote,  even  at  a  period  ^hen  liberty  is  felt  to  be  the  most  desirable  of 
all  earthly  possessions.  Nor  is  this  Southside  interest  alone  that  is 
leviving  in  Virginia.  The  ruin  which  has  overtaken  our  people,  has  only 
served  to  impart  new  energy  and  sterner  purpose  of  retrieve  throughout 
the  Commonwealth;  and  no  State,  either  in  the  new  world  or  in  the  old 
either  in  modern  or  ancient  times,  has  ever  exhibited  a  more  rapid  recu- 
peration from  utter  prostration  than  she  has  displayed  during  the  last 
three  years,  under  the  most  appalling  political  discouragements  that 
eould  depress  the  energies  of  a  fallen  State. 

Virginia  haa  emerged  from  the  war  poor,  mainmed  and  desolate ;  but 
with  the  unconquerable  will  which  has  characterized  her  in  all  her  past 


94  THB  XDMXTKDS'  RSSOLITTIOH.  [jPeftfttOfy, 

hittory.  Sbe  still  has  left  that  self-respect  and  pride  of  cbaraeter,  which 
nerve  and  console  nnder  every  calamity,  and  which  befit  dignity  and 
worth  under  any  misfortune.  Sbe  has  lost  none  of  that  energy,  none  of 
that  enterprise,  which  she  has  always  possessed,  however,  clamorously  it 
may  have  been  denied  to  her.  And  though  her  destitution  may  be 
extreme,  and  however  much  the  troubles  she  has  suffered  may  haye  sad- 
dened her  spirit,  ^till  she  claims  and  intends  to  achieve  a  prosperous  and 
honorable  future ;  not  only  for  herself  as  Virginia,  but  for  her  cities  aod 
her  seaport,  as  cities  and  the  seaport  of  Virginia. 

**  Like  some  UU  diff  tbtt  lifts  iU  awful  form. 
Swells  from  the  rsle,  and  midway  lesTea  the  storm, 
Though  round  its  breast  t'  e  rolling  eloads  may  spread, 
Sternal  smiahine  sttiles  on  its  head.** 


^^^i^>^»**M'M^^>S*^ 


THE  EDMUNDS'  RESOIUTIOH. 

It  is  not  difficult  to  conceive  that,  in   anticipation  of  the  electioII^ 

there  might  have  been  political  reasons  strongly  influencing  both  parties  in 

Congress  against  committing  themselves  definitely  upon  the  question  of 

the  payment  of  Five-Twenty  bonds  in  coin.      But  now  that  the  election 

is  passed,  it  does  appear  that  the  national  creditors  have  a  right  to  expect 

an  unequivocal  expression  of  sentiment  upon  this  very  important  issue. 

The   usefulness  of  such  a  declaration  arises  rather    from  the  sacredness 

of   national   chaiacter  than  from   its  practical  bearings.      No  nation 

can  afford  to  deal  equivocally  with    its  creditors.     Upon  its  good  faith 

and  honor  depends  its  credit;  and,  in  the  history  of  every  nation,  there 

comes  a  time  when,  upon  its  credit,  hangs  its  very  existence.     During 

the  war,  we  borrowed  at  a  heavy  disadvantage,  because,  among  othar 

reasons,  our  willingness  to  be  taxed  upon  a  large  scale  had  never  been 

tested.    The  test  is  now  being  applied;  and  if  the  event  should  prove 

that  we  are  disposed  to  avail  ourselves  of  a  quibble  for  depriving  our 

creditors  of  what  they  conceive  to  be  their  just  rights,  we  must  expect 

to  have  to  pay  the  penalty  of  our  bad  faith  the  next  time  we  biHX>me  bor- 

rowers.    The  faintest  savor  of  repudiation  inflicts  irreparable  injury  upon 

the  credit  ot  a  Government;    and  when  that  Government  is  popular  in 

form  the  damage  is  the  more  incurable ;   for  the  taint  is  attributed  to 

the  heart  and  morals  of  the  people.    Assuming  that  it  were  feasible 
to  pay  off  the  Five-Twenties  in  greenbacks  and  issue  bDnds  at  a  lower 

rate  of  interest^  the  consequent  stain  upon  the  credit  of  the  Government 

would  cling  to  us  through  all  our  future  history,  and,  forever  after,  ws 

should  have  to  borrow  at  a  corresponding  discount.  In  the  matter  of 

national  finance,  therefore,  honesty  the  best  policy. 


1869]  TUX  XDUUHDb'  BXtOLUnOK.  05 

Bendes,  in  a  vexj  important  tense,  republican  inBtitutiont  are  on  their 
trial  in  the  determination  of  this  question.  No  nation  has  b<^en  able 
loDg  to  conduct  its  affairs  without  borrowing.  Every  Government  has 
bad  its  crisis,  when  without  loans  it  must  have  succumbed  to  its  enemies. 
And  it  has  been  urged  by  publicists  in  favor  of  absolute  governments 
that,  being  least  dependent  upon  the  will  of  the  people  in  the  imposition 
of  taieS)  they  were  most  to  be  trusted  as  borrowers.  It  now  devolves 
apon  OS  to  determine  before  the  world  whether  the  moral  instincta  of 
A  free,  christian  people  are  as  much  to  be  trusted  as  a  despotic  Govern- 
ment. If  ihe  issue  be  determined  in  the  negative,  then  we  prove  that 
republics  lack  one  of  the  indispensable  elements  of  resistance  to  danger  ; 
and  the  struggling  cause  of  the  people,  the  world  over,  is  weakened.  If 
tlie  issae  be  decided  affirmatively,  then  we  demonstrate  that  a  free  people 
maybe  trusted  to  defray  fully  an  enormous  indebtedness  incurred  for 
tiie  preservation  of  their  government ;  and  that  question  being  estab- 
liab«d,  the  liberal  thinkers  and  statesmen  of  Europe  are  furnished  with 
a  complete  demonstration  of  the  stability  of  free  governments.  The 
determination  of  this  issue  is  thus  closely  identified  with  the  cause  of  free 
goTtfoment  everywhere,  as  well  as  with  the  interests  of  our  own  people. 
Let  the  essential  honesty  of  the  American  people  be  fully  established,  and 
thereafter  we  may  count  upon  being  able  to  borrow  at  all  times  upon 
the  most  faTorable  terms ;  a  fact  which  of  itself  would  be  the  surest  pos'^ 
lible  protection  against  external  encroachments  upon  our  honor  and 
right«,  our  good  credit  thus  being  in  a  most  important  sense  an  economy 
of  expenditures  for  protection. 

Besides,  what  is  the  actual  saving  proposed  to  be  effected  in  behalf  of 
the  people  at  large,  by  this  quasi  repudiation  9  Assuming  that  the  diff- 
erence between  payment  in  coin  and  in  greenbacks  were  one-third  the 
value  of  the  bonds;  that,  upon  a  total  of  $1,602,000,000  obligations,  would 
amount  to  $534,000,000 ;  which,  distributed  over  a  total  of  40,000,000 
people,  would  be  just  $18  35  per  head.  Are  we  prepared  to  sacrifice  our 
honor  and  our  credit  for  all  time  for  such  a  paltry  consideration  ? 

We  have  taken  this  course  of  remark,  not  so  much  because  we  appre- 
hend that  the  Five-Twenty  bonds  will  ever  be  liquidated  in  paper  cur- 
rency, as  from  a  fear  that  Congress  may  shrink  from  disclaiming  the 
dishonest  principle  involved  in  the  negation  of  Senator  Edmunds*  resolu- 
tion. It  is  easily  demonstrated  that  the  real  issue  is  between  coin  pay- 
ment and  blank  repudiation.  Let  it  be  supposed  that  Congress  declare 
the  bonds  to  be  payable  in  the  irredeemable  notes  of  the  Government,  and 
that,  at  the  expiration  of  the  five  years  option,  the  Treasury  call  in  the 
bond^  Id  order  to  provide  the  means  for  taking  up  the  old  securities, 
the  Treasury  must  be  in  a  position  to  rely  upon  being  able  to  sell  an  equal 


96  THX  bdhusdb'  BisoLinnov.  [FAnary, 

mmovDt  of  new  ones.  Who,  then,  are  to  be  the  takers  of  the  new  loan ! 
Can  it  be  assumed  that  the  holders  of  the  old  obligationa,  drappointed 
and  incensed  at  the  refusal  to  pay  them  in  coin,  would  again  trust  the 
Government  and  invest  in  its  securities  !  The  supposition  is  contrary  to 
all  experience  and  probability.  And  what  reason  have  we  for  supposine 
that  other  investors  would  have  so  much  better  opinion  of  the  credit 
of  the  Government  than  the  old  bondholden  as  to  exchange  their  invest- 
ments for  the  new  bonds !  The  fact  of  thdr  having  preferred  other 
investments,  before  the  Government  took  a  couise  so  injurious  to  its  credit, 
is  a  conclusive  reason  for  assuming  that  they  would  not  invest  in  United 
States  obligations  when  th^  dishonor  was  an  accom  plished  hoL  The 
holders  of  the  present  seeuriUeSy  foreseeing  the  liability  of  the  scheme  to 
miscarry  from  this  cause,  and  that  nothing  could  be  done  in  the  matter 
of  redemption  if  they  refused  to  take  the  new  bonds,  would  at  once  cod- 
dude  that  the  Government  was  at  their  meiey.  They  would  therefcHe  ges* 
erally  wait  until  the  £Kt  was  announced  by  the  Treasury  that  it  oould  not 
procure  the  neceesary  funds,  and  that  the  old  obligationa  must  therefore 
be  allowed  to  run.  It  is  thus  dear  that  the  payment  of  the  bonds  in 
greenbacks  is  impracticable,  and  that  oonaequently  Congress  is  ahutun  to 
the  alternative  of  paying  them  according  to  the  views  of  right  ente^ 
tained  by  the  bondholdersi  or  repudiating  them  altogether.  If  this  be 
the  portion  in  which  the  Government  stands  to  its  ereditoiSy  what  ii 
there  to  justify  Congress  in  easting  a  needlon  stigma  upon  the  public 
credit  by  hesitating  o  take  the  ground  assumed  in  Mr.  Edmunds'  propo- 
ation ! 

The  Senate  haa  already  committed  itsdi^  by  formal  readution,  to  the 
position  that  the  form  of  the  debt  cannot  be  ehanged  until  we  have 
resumed  spede  payments.  This  condusioa  appears  to  have  been  based 
mainly  upon  the  oonaderations  we  have  just  advanced,  and  can  be  bat 
confirmed  by  examination  and  experience.  When  coin  or  its  equivaleot 
become  the  currency  of  the  country,  the  bonds  could  be  paid  in  no  other 
form.  Their  payment  would  then  be  in  no  sense  oflbnsive  to  the  bond- 
holders, but  a  full  rendering  of  their  rights;  and  the  credit  of  the  Gov- 
ernment bdng  thereby  vindicated,  bonds  could  be  easily  issued  at  a  lower 
rate  of  interast,  for  the  purpose  of  taking  up  those  now  outstanding.  The 
dedaraiory  resolution  is  thus  nothing  more  than  an  affirmation  that  the 
bonds  shall  be  paid  in  the  only  way  in  which  they  can  be  paid. 

We  repeat  the  question,  then,  why  should  there  be  any  hesitation  in 
adopting  the  Edmunds'  resolution  !  Under  this  pliin  necessity  for  pay- 
ment in  coin,  the  hesitation  suggests  surmises  seriously  damaging  te  the 
national  credit  and  calculated  to  needlesdy  exa^erate  the  prevailing  finan- 
cial unoeitaintiea.    When  Congress  is  plainly  ahut  up  to  thepaymentof 


1869 J  PBOYOBBD  •OTZRKMIHT  TSLlOiUPK  STBTXH.  Q? 

the  bonds  in  coin,  and  yet  refoses  to  say  that  tbey  shall  be  so  paid,  the 
world  naturally  asks  what  then  does  it  propose  to  do !  and  as  tiie  answer 
does  not  come  always  from  friendly  quarters,  reflections  are  liable  to 
be  cast  upon  our  honor,  which,  though  not  likely  to  be  ultimately  justi- 
fied, yet  in  the  meantime  injure  our  reputation  and  cause  an  unneces- 
sary weakening  of  public  confidence.  We  cannot  but  think  that,  should 
the  resolution  be  at  present  rejected,  it  will  be  adopted  when  Congress 
more  fully  comprehends  its  entire  accordance  with  the  logic  of  the  situ* 
stion. 


m^ym  ^>^^0^^^^^^0^0^^^^t^^^^^mt^^<<^^^'^^^'^^m^^ 


nm%U  GOTERNXENT  TELEGRAPH  SYSTEI. 

There  appears  to  be  a  determined  effort  in  Congress  to  place  the  .tele- 
graph system  of  the  country  und^r  government  control.  Last  year,  Mr. 
Washbume  took  the  initiative  by  introducing  into  the  House  a  bill  pro- 
viding for  the  building  of  a  government  line  from  Washington  to  New 
York,  to  be  worked  in  connection  with  the  Post  Office,  the  enterprise 
beiDg  desigoed  as  an  experimental  step  toward  the  ultimate  monopoly 
of  the  whole  business  of  telegraphy  by  the  Government.  Some  doubts 
of  the  ability  of  such  a  line  to  compete  with  private  companies  appear  to 
have  been  entertained,  and  that  scheme  may  perhaps  be  considered  as 
having  little  chance  of  adoption.  The  Postmaster  Qeneral,  however, 
profiting  by  the  experience  of  his  predecessors  in  the  movement,  now 
comes  forward  with  a  scheme  for  blending  a  telegraph  service  with  the 
Post  Office,  not  through  the  government  building  or  purchasing  lines,  but 
by  the  organization  of  a  company  which  shall  contract  with  the  Govern- 
ment to  transmit  messages  at  fixed  low  rates.  He  proposes  that  the 
company  be  authorized  to  construct  lines  on  the  post  roads  and  routes ; 
that  its  capital  be  fixed  at  $^0  for  «aoh  mile  of  wire ;  and  that  its  wirt  s 
be  multiplied  or  extended  at  the  will  of  the  Postmaster  General.  Ofl^ces 
are  .to  be  established  in  connection  with  the  Post  Offices  in  every  city 
sod  village  of  5,000  inhabitants  and  over,  at  railroad  stations,  and  at 
such  other  places  on  the  line  of  the  wires  as  the  business  of  the  country 
may  require.  The  maximum  rate  to  be  charged  by  the  company  for  tbe 
transmission  of  messages  is  fixed  at  20  cents  for  twenty  words,  for  eauli 
500  miles  or  part  thereof,  to  which  is  to  be  added  five  cents  for  pottage 
sod  delivery.  Provision  is  also  made  for  the  prompt  delivery  of  met- 
lages  and  for  the  remittance  of  money  by  telegraph,  as  now  through 
the  money  order  office.  This  scheme  has  been  suggested  to  the  Postmas- 
ter General  by  parties  at  Boston,  and  apparently  in  connection  with  an 
ofier  to  organize  a  company  upon  the  terms  suggested.  It  is  not  proposed, 
however,  to  contract  with  the  new  company  if  any  other  should  offer  to 
do  tbe  business  upon  better  terms.  2 


96  PBOP08SD  oornaiiiBHT  tbliobaph  btbtbm.       [Fehruaryf 

There  is  a  certain  fleductiyenett  abput  Mr.  Randairs  scbeme  which 
is  quite  likelj  to  secure  its  &v(Nrable  consideration.  He  very  sdroitlj 
evades  some  of  the  more  prominent  objections  against  the  Government 
meddling  with  public  enterprises.  His  scheme,  it  may  appear,  involves  do 
outlay  in  lines  and  little  risk  by  the  Government,  both  being  thrown  upon 
the  company  with  which  the  Postmaster-General  may  contract ;  nor  does 
it  grant  exclusive  privileges  to  either  the  Government  or  the  company  t 
while  it  proposes  to  furnish  telegraphic  facilities  at  very  much  cheaper 
rates  than  are  now  charged  by  private  companies. 

It  is  not  necessary  to  go  through  the  mass  of  intricate  and  nnoertsin 
details  connected  with  the  main  question,  to  arrive  at  the  conclnsion  that 
there  are  fundamental  blanders  in  Mr.  Randall's  scheme.  Much  reliance 
appears  to  be  placed  upon  the  assumption  that  a  large  economy  in  the 
management  of  the  business  would  be  effected,  as  compared  with  that  of 
the  exiftting  companies.  Is  it  safe  to  take  this  very  important  item  in  the 
calculation  for  granted  ?  There  is^  perhaps,  no  branch  of  corporate  bu^- 
ness  conducted  with  greater  economy  than  telegraphing,  so  far  as  respects 
appearances  and  accommodation.  Compared  with  our  banks,  insurance 
offices  and  railroad  depots,  the  telegraph  offices  are  unpretending— not  to 
say  mean  looking—and  crowded,  an  immense  bnsiness  being  frequently 
done  in  basements  or  in  secluded  corners  rented  in  private  stores  or 
offices.  Every  one  familiar  with  the  pay  of  employes  of  the  present 
telegraph  companies  knows  that  they  receive  poor  compensation  for  herd 
work.  We  do  not  believe  it  will  be  pretended  in  any  quarter  that  there 
is  extravagnnce,  or  more,  that  there  is  not  the  strictest  economy,  in  iLe 
management;  which,  of  course,  necessitates  a  corresponding  conservatism 
in  the  control  of  competing  companies. 

Now,  it  is  most  important  that  the  Postmaster-General  should  have 
shown  wherein  the  economy  in  the  Post  Office  management  of  this  busi- 
ness would  exceed  that  of  the  present  Companies ;  but,  on  this  very  essen- 
tial point,  we  have  not  a  word  of  explanation.  So  far  as  respects  offices, 
it  may  be  assumed  that,  in  the  smaller  towns  and  villages,  the  existing 
Post  Office  buildings  would,  in  many  cases,  afford  scope  for  the  added 
telegraph  business.  But  this  is  far  from  being  true  of  the  larger  citia, 
where  the  bulk  of  telegraphing  is  done.  The  mail  business  has,  in  most 
instance?,  outgrown  the  old  buildings  in  which  it  is  transacted,  and  noail. 
ing  operations  sufifor  from  lack  of  adequate  accommodation ;  a  fact  to 
which  the  Postmaster-General's  annual  reports  bear  ample  testimony. 
Does  Mr.  Randall  suppose  that  the  crowded  quarters  in  Nassau  street,  or 
the  new  office  to  be  some  day  erected  elsewhere,  will  afford  aooommods. 
don  equal  to  that  given  by  the  present  74  telegraph  offices  in  this  city, 
with  their  S75  employes!    With  86  offices  in  Philadelphia  and  211 


1869]  PBoroaxD  ootibrmxht  tkliobafh  ststuc  99 

• 

employes;  24  in  Boston  and  156  employes;  22  in  Chicago  and  86  em- 
ployes; 21  in  Ciadnnati  and  93  employes;  and  with  other  cities  in  like 
proportion ;  the  OoFernment  would  evidently  find  it  necessary  to  lay  out 
lug^  sums  in  extending  its  Post  OfiBces  and  building  new  ones  and 
farnisfaing  them;  which  would  no  doubt  be  profitable  to  politicians,  but 
woald  be  poor  economy  of  the  public  funds.  In  addition,  therefore,  to 
tbe  capital  to  be  laid  out  by  the  proposed  Company,  in  new  wires,  the 
public  would  be  taxed  to  provide  capital  for  the  requisite  accommodations 
io  the  postal  deparunent.  This  certainly  is  not  the  sort  of  response  the 
public  expect  to  their  earnest  demand  for  public  economy. 

Xor  is  it  any  clearer  how  any  economy  is  to  be  effected  with  respect 
to  employes.  If  the  Post  Office  Department  is  properly  managed,  the 
haod^  in  the  o£Bces  of  all  towns  or  cities  of  5,000  inhabitants  and  over 
(to  which  it  ia  proposed  to  extend  the  system)  are  already  fully  employed  ; 
none  of  the  employes  of  the  post  offices,  excepting  the  carriers,  would  be 
available  for  the  new  business ;  and  a  wholly  additional  staff  would  the 
refore  hare  to  be  employed.  Nor  wonld  there  be  any  economy  to  tbe 
public  in  the  carriers  being  available  for  the  delivery  of  messages, inasmuch 
as  it  is  proposed  to  charge  ^ve  cents  on  each  message  for  delivery ; 
which  is  probably  more  than  tbe  present  cost  of  delivery  to  the  private 
companies.  The  effect  of  tbe  proposed  arrangement,  therefore,  would  be 
to  increase  largely  the  capital  and  the  labor  employed  in  telegraphy,  witi  - 
oQt  correspondingly  augmenting  the  business  done.  This  certainly  is  not 
economy.  We  can  easily  understand  how  the  proposed  company  should 
undertake  to  send  dispatches  at  much  lower  rates  than  are  charged  by 
private  companies,  when  the  Government  undertakes  to  provide  buildings, 
fainiture  and  stationery,  and  to  meet  expenses  of  repair,  lighting,  &c ;  but 
it  would  be  a  great  mistake  to  suppose  that,  under  such  an  arrangement 
the  public  had  paid  in  full  for  their  messages  when  they  had  boughi 
the  stamped  paper  on  which  they  were  written;  a  large  balance  would 
remain  to  be  paid  in  taxation  to  defray  the  expenses  of  the  new  dep:«rt- 
ment  It  ia  singular  that  Mr.  Randall,  in  urging  the  argument  of  econ- 
omy, should  have  failed  to  show  what  would  be  tbe  probable  outlay  and 
the  annual  cost  to  the  Government  of  his  scheme.  We  presume  there 
are  good  rcMona  for  his  reticence. 

But  even  after  this  large  outlay  on  the  part  of  the  Government,  it  does 
not  by  any  means  follow,  because  there  are  parties  now  ready  to  organize 
a  company  and  to  make  a  contract,  as  the  Postmaster- General  proposes, 
that  they  would  long  continue  to  send  telegrams  at  the  reduced  rates 
o&red  in  this  scheme.  Suppose  that  the  contractors,  after  a  convenient 
period,  should  announce  their  inability  to  do  the  business  at  the  rates 
agreed  upon,  what  would  the  Government  do !    No  other  company  wonld 


100  YROPOnD   GOVSRKMS!IT  RLIORAPH  6TSTCM.  [FehnUOJ^ 

be  likely  to  take  up  the  contract,  for  the  failure  of  the  new  organization 
would  deter  tbenu  The  €k)vemment  would  therefore  have  the  choice  of 
taking  the  whole  affair  into  their  hands  or  of  submitting  to  a  higher 
tariff.  The  latter  course  would  be  an  acknowledgment  of  the  failure  of  the 
scheme ;  and  the  former  would  be,  in  every  sense,  an  unmitigated  evil, 
an  abuse  of  the  functions  of  Government,  a  substitution  of  political 
management  for  businera  enterprise  and  an  extension  of  the  politial 
corruption  connected  with  bureaucracy.  The  company  which  Mr.  Rac- 
dall  proposes  to  associate  with  the  Post  Office  would  thus  virtually  hold 
the  Government  at  its  mercy ;  and  having  the  same  motives  to  exact  the 
highest  possible  rates  as  influence  other  companies,  we  have  no  sort  cf 
assurance  that  the  corporation  would  not,  after  having  used  the  Govern- 
ment to  bring  it  into  existence  and  give  it  prestige,  yield  to  inducements 
from  private  companies  and  demand  an  advance  upon  the  proposed 
schedule.  This  view  will  commend  itself,  we  think,  forcibly  to  all  ac- 
quainted with  the  management  of  corporate  interests. 

In  addition  to  these  objections  to  Mr.  Randall's  scheme  speciBcallj 
there  are  others  against  any  and  every  form  of  Government  interference 
with  the  business  of  telegraphing.  It  is  essential  to  the  protection  of  tbe 
public  that  the  parties  who  do  its  telegraphing  should  be  responsible 
for  delayS|  errors,  neglect  or  the  divulgence  of  secrets.  Without  such  a 
stimulus,  the  best  managed  companies  would  be  apt  to  transact  their 
business  carelessly  and  the  public  would  suffer  inconvenience  and  los5. 
The  Government  would  be  exempt  from  all  such  liabilities ;  and  in  tbe 
absence  of  this  motive  to  care  andenergy  its  business  would  be  less  ef- 
ficiently transacted  than  that  of  private  corporations.  The  history  of 
telegraphing  proves  that  its  progress  depends  entirely  upon  scientific  re- 
search and  experiment,  and  the  promptness  of  competing  companies  to 
avail  themselves  of  each  successive  iuiprovement  in  processes  and  insUU' 
ments.  State  Bureaus  are  notoriously  slow  to  recognize  the  results  cf 
invention.  Officials  too  frequently  refuse  to  move  in  the  adoption  of  >m. 
provements  until  won  over  b}  a  douceur ;  and  provided  such  an  induce, 
ment  be  offered,  they  are  apt  to  recommend  or  adopt  inventions  irre. 
spective  of  their  merits,  always  ready  to  make  the  interests  of  their 
department  subordinate  to  perquisites.  The  Government  is  in  no  position 
to  command  the  services  of  tbe  most  efficient  agents.  Of  necessity,  it 
pays  a  fixed  salary  to  its  officers,  tihich  is  less  than  really  talented  experts 
can  command  at  the  hands  of  corporations ;  and  it  is  thus  of  necessity 
distanced  in  enterprise  by  private  parties.  Any  governmental  system  of 
telegraph  would  pay  less  regard  to  public  convenience  than  is  afforded  by 
the  existing  companies.  The  present  companies  carry  their  wires  into  tbe 
hotels,  railway  and  other  corporation  offices,  and  in  this  city  to  the  Stock 


1S69J  ALBAKT  AND  SUSQUEHANNA  RAILROAD.  101 

Boards,  Gold  Boom,  Produce  Exchange,  and  every  place  where  an  im- 
portint  amount  of  telegraphing  is  transacted,  thereby  effecting  a  most 
material  economy  of  time  and  expense  in  the  conveying  of  messages.  The 
Goremioent  scheme  proposes  to  do  nothing  of  the  kind ;  and  from  this 
very  n^lect  Mr.  Randall's  telegraph  would  fail  to  draw  from  the  existing 
companies  the  most  material  part  of  their  business.  These  are  but  a  few 
of  the  many  weighty  objections  that  might  be  urged  against  the  Govern- 
ment attempting  this  form  of  interference  with  private  enterprise. 


ALBANY  AND  SUSftCEHANNA  RAILROAD. 

The  twelfth  day  of  the  current  month  will  witness  the  interesting 
ceremony  of  the  formal  opening  of  the  Albany  and  Susquehanna  Kail- 
road  to  public  travel  and  transportation. 

Ibis  line,  which  has  a  total  length  of  140  miles,  connectsby  a  broad 
^auge  road  the  State  capital,  on  the  Hudson,  with  Binghamton,  on 
the  Susquehanna,  and  is  intended  to  furnish  a  great  coal  carrier  from 
the  anthracite  regions  of  Pennsylvania  to  the  upper  Hudson  River,  and 
make  Albany  the  distributing  point  for  the  North  and  East,  Canada  and 
the  New  England  States.  It  also  gives  Albany  a  broadgauge  line  via 
Binghamton  and  the  Erie  Railway  to  the  Great  West.  When  com- 
pleted to  Troy  and  Whitehall,  as  intended,  the  line  will  become  the 
Irighway  between  the  anthracite  districts  of  Pennsylvania  and  the  district 
of  which  Montreal  is  the  centre. 

That  part  of  the  State  traversed  by  this  road  has  hitherto  been  entire- 
ly destitute  of  raiload  facilities.    Not  a  single  railroad  crosses  its  course 
or  in  any  way  connects  with  it  except  at  the  extreme   termini.    It  is 
nevertheless  an  important  and  wealthy  section,  and  one  which  will  afford 
a  laTg^e  local  business,   as   the  extraordinary  prosperity  from   the  opera- 
tions on  the  unfinished   line  have   proved.     To  accommodate  localities 
branch  roads  have  been   constructed,  while  others  are  in   progress  and 
many  more  are  projected,  with  the  prospect  that   their  completion  will 
tiOt  be  delayed  beyond  a  reasonable  term.    The   branches  already   in 
operation  are  the  one  from  Central  Bridge  to  Schoharie  Court  House,  12 
miles;  and  the  other  from  Collier's  Station  to  Cooperstown,  about   16 
tiiles.    It  is  also   determined  to   construct  immediately  a  railroad  from 
Cobbleskill   to  Sharon  Springs,  14  miles,  and  thence  to  Cherry  Valley,  6 
miles  further.    Through  the  Delaware  and  Hudson  Canal,  which  the  road 
meets  at  Ninevah,  communication  is  is  now  had  with   the  coal   region, 
sod  preparations  are  being  made  to  carry  the  track  on  to  Soranton.     The 
railroad  of  the  New  York  and  Pennsylvania  Canal  .Company  will  tap 
the  line  at  Waverly. 


102  ALBANT   AVD   8U6QUXHAKKA   RAILROAD.  [F^ruory^ 

The  total  cost  of  constructing  and  equipping  the  Albany  and  Susqne- 
hanna  Railroad  is  less  than  $6,500,000.  Towards  the  realization  of  the 
enterprise  State  legislation  has  been  farorablcy  and  at  various  times  con- 
siderable amounts  have  been  appropriated  in  furtherance  of  this  enter- 
prise. In  all,  we  believe,  about  $1,000,000  have  been  thus  donated  to 
the  companj,  the  last  $200,000  of  which  became  due  on  the  comple- 
tion of  thts  road  to  Binghamton. 

The  coropanj  owning  the  line  was  formed  under  the  General  Railroad 
Law  of  the  State,  the  articles  of  association  having  been  filed  on  the 
19th  of  April,  1851.  The  capiUl  was  fixed  at  $1,400,000.  In  1852 
(laws,  cap.  105)  Albany  was  authorized  to  loan  the  company  $1,000,- 
000.  In  1859  (laws,  cap.  384)  the  capital  was  increased  to  $4,000,000. 
In  1863  (laws,  cap.  70)  an  act  to  fiicilitate  the  construction  of  the  road 
waa  passed  and  $500,000  appropriated,  and  in  1864  (laws,  cap.  399)  an 
act  authorizing  a  State  tax  for  this  purpose.  In  1867  (laws,  cap.  164) 
another  act  was  passed  in  aid  of  the  enterprise ;  and  acts  have  been 
from  time  to  time  passed,  authorizing  cities  and  towns  to  take  stock  in  the 
company,  and  extend  the  time  for  completing  the  road,  Ac 

The  construction  of  the  road   waa  commenced  in  July,  1853,  and  con- 
tinued  to  August,  1854,  when   it  was  suspended.    Work   was  re>eom 
menced  in  September,  1858.    The  progress  of  completion  by  sections  was 
as  follows : 

To—                                                               I     To— 
SehohArie 86mll6i..8ept  16, 1868*  UnadiUa 09  miles.. Mar. U,  19M 


Cobbleeklll 45  "*  ..Jan.    a,  1»(6 

BichmondviUo so  "  ..Jnne    1,1865 

Worcwter 63  "  ..Jnlj  17,1866 

Bctaeneviu 67  **  ..Aug.  7,  186S 

OneobU 8i  •'.  ..>iig.  98, 1865 

Ote«o   UO  **  ..Ju.  S8. 1866 


Sidney  Ralni. 109  *'  .Oct.  S  ,  1866 

aicbridge 108  "  ..July  10, 1867 

Afton 114  *•  ..Nov.  II,  1867 

Ua'perarUe ISO  **  ..Dec.  95, 1897 

Binglumpton 140  *'  ..Die.  60, 1868 


Up  to  the  30th  September,  the  close  of  the  official  year  1867-68,  the 
cost  of  the  construction  and  equipment  (including  interest  and  dis- 
counts, $521,73?  02)  had  been  $6,387,455  94.  Of  this  amount  about 
$800,000  was  donated  by  the  State,  and  remainder  raised :  on  stock,  91,- 
841,393  13;  on  bonds  and  loans,  $2,802,000 ;  on  floating  debt,  $560,- 
000;  and  from  surplus  income,  $401,829  82.  The  equipment  of  the 
line  at  this  date  consisted  of  17  locomotives,  15  passenger  cars,  17  bag- 
gage, mail  and  express  cars,  and  182  freight  cars.  The  road  has  11.15 
milea  of  sidinfi:s.    The  iron  laid  weighs  53  to  56  pounds  to  the  yard. 

The  regular  business  operations  of  the  6rst  division  of  the  road  were 
commenced  with  the  official  year  1863-64,  and  hence  trains  have  been 
running  for  the  five  years  ending  September  30,  1868.  The  general  re- 
sults are  aa  given  in  the  annexed  statement : 

1869-64.     19n4-66.  186Mt6.  1866-67.  1867-08. 

Ayar.  length  operated (SSm)  (48m)  (O^m)  (1U4  m)  (118m) 

XUee ranby  traina a9,85»  6%47«  1»1,67S  191,638  897,101 

^•aengen  carried 50.688  105,878  904,648  9I0,MS          

XUeageofpiPfngen 1.746,681    8,198,  v93  6,860  668  6,87S,741  7,061,864 

Tone  of  freight  moved 17,310  90,848  89,600  67,611          

llUasae  of  freight 660,886  790,688  1,811,887  8,090,619  4,960,190 


t869]  IKTXENll.  BKVSNUK  REOSXPTS.  103 

The  fiscal  resalts  from  this  basineflB  was  jearlj,  as  shown  in  the  fol 
iowiog  ahBtract : 

1868  64.  1864-6S.  1865-66.  186»-67.  186!-68. 

Pi9^Bcer $47,60863  $88,00901  $lTl.fi6474  $196,99006  $908,89910 

Prd  ht 47,9074d  78,69716  161,64039  91\rfi814  948,99100 

Exp  CM 9,956  96  60,49415  66,97948  66,06181 

Mail 80<49  1,787  69  6,96917  7.747  75  tt,trt6  09 

lUtcelliBflou 1,54669  9,40689  9,65948  4,91981  4,1<1  88 

f^rcfSfftniingf. $97,861 07   $175,79918     $886.19688     $484  99819     $P36,899ftl 

£xpeDfie  .  66,489  97       99,78066       195,78487       864,013  70       806,008  86 

Kmremiae $49,87880    $Sl^ivi    $189,46449     $»0,S1448    $997,81879 

Which  was  dkburaed  on  the  folIowiDg  acconnta  : 

Interot $ $ $ $169,11908  $174,4679* 

r.S.tizoD€ftr*s        1,6C040  4,87656  9,40971  6,88776  6,0609^ 

CarredtOforprB 

food 40;76840  76,06401  184,00178  56,71471  47,98099 

The  following  ia  a  statement  of  the  capital  aoooant  (bo  far  aa  recorded 
io  the  aDDoal  report  to  the  State  Engineer  and  Surveyor)  at  the  close 
of  the  five  fiscal  jears,  ending  September  80, 1868 : 

1864.     1866.     1866.     1867.     1868. 

s  s  $  $  $ 

Capital  itodc 1,847.109  67  1.604.146  60  1,675,188  70  1,774,894  85  1,861.80818 

F«nd«ddeb S16,7]»55  1,016,78966  9,114.00000  9,486,000 00  8,8U*<{,0G0 00 

Float  Of  d*1»t 96,86000     178,79181       19,»>4898     S8»,767  68     660,00000 

SuplBsineoBW 40,76840     118,88941     998,88419     854.54890     401,»«89 

Ii>bmtlct 9,981,060  46  9^918.480  97  4^07,616 17  4^885,140  78  5,696,999  65 

Per  contra :  charges  on  the  following  accounts : 

Cra^tnieCioil 1,907,1%  18  9,977,901  48  8,868,861 16  4,689,981  60  5,817.861  69 

^aipmnit 199,84695     198.8i«84     813.09894     487.84681     547.86735 

iAU-r«KAdiMO'ts 1-^6,183  78     906,76618     417,989  08     445,10908     519,7b7  07 

C^ofr«id.Ac 9,1^15661  8,881,865 49  4,696 091 48  mTsTsHOSS  6,887,455 M 


INTEBRAl  RETENUE  RECE]FT§. 

Table  showing  the  aggregate  receipts  of  internal  revenue  for  the 
several  fiscal  years  1865,  1866,  1867,  and  1868 ;  the  amount  derived 
from  the  principal  specific  aources ;  and  the  per  centage  of  the  amount 
derived  from  each  specific  source  to  the  whole,  for  1868: 

Pt  ct. 
Beceiprg      SereipU     Receipts      R(»ce'pt8  <fthe 
Art'daiftiid  fVirflffcal      forfl-cnl     for  flscJil      to^tiBol    whole 

vcca.  tloDfi  7rarl665.     7<)arl866.    year  1867.     >earl968.  lec  pts 

R<M>Uandebr»e«....             $S,98Q,6?7  $6,016,814  $9,948,490  $1,946,968  1.019 

Br  Ddy.i,adefrumsmp«t 10,549  44,74 1  18,070  15^.8  6  .088 

BflMon 879,618  48S,8:J7  441.H40  828.«0il  .169 

i,«n<Jl€«. .    8-1H.668  89a,8«  99\609  936.659  .194 

f^rraxea.  railroad  ca^t,  Ac 880,091  1,616,6^9  1,006,769  559,»U  .999 

Cbe«iic4l  pMdoctioua 817,883  684,780  979.899  1S-),K40  .Wk 

Ck  •coUto  aud  cocoa 17,980  8^,487  84,463  94,067  .018 

Ci|tin.dnr«tte«,iindeheioot« 8,087,491  8,47(6.987  8,661,984  9,951.675  1.544 

Clfick ,  doek-noreia^iJtB,  Ac 98.888  158,697  60.968  71.896  .0  6 

Cjoth,  ota«i  than  cottmtr  wool 876,679  596.798  l,6i7,6i^  lvS,159  .(«4 

goth,  p  iatw,  Ac lfO.988  819,994  9^9,719  918,799  119 

?ommg 6.690,987  19,0-/3r,6»7  8,196,749  904,901  107 

^ 85.964  1,940.106  

C'ffee,roaftedA^ioa  d,  Aalilwtit'a.  964,070  99i,5'«  979,665  9M.6^  .189 

Co  fcct=  neiy 6«9,474  995,<95  764,95  599.069  .810 

Oottn  Cibrtes,  yaroB,  thread,  Ac 7,&)U  8  19,491,934  9.999.468  6,4^8,8^5  8.894 

Coltoo,  »w 1,779,988  16,409,665  23,76*,0T9  99,500,943  11,767 


104 


INTBBNAL  RSTBNUS  BSOUPTe. 


r/Umofy, 


u 
t* 

•« 

14 
•  I 

U 


/rtfcletand 
nrcnpatioot. 

Cutlery 

Varnitnre  and  nunnfAc  nreifof  wood. 

Fori 

Oa«,  iUnminating;       

OJasB,  maimr«ciu*§  of 

G  'Id  m  iDofiictiirei,  Je  veTr/,  dlam  ds, 

Ac 

OUe 

OmpowHer 

Ind  a  rabber.^ADDfac tares  r  f 

iion  blooms.  Ac 

*'   ad  van  ced  'x  yond  blooms,  Ac ... . 

>>and,faoop  A  rh't 

bar,rod,Ac 

plate 

railioad , 

**      re-rollej 

P«K- 

CJli>tiDgS 

''      (Stoves  A  hollow  ware). . . 

mflnafxctares  of, 

cat  nallsAspikes 

riveu,  nats,  Ac 

L->ad  Bta^et,  lead  pipes,  and  shot 

"   white 

Leather  of  all  descrlp^B 

Liquors,  distilled    

**       ferm  nted 

Michinery«  s  *  earn  engloea,  Ac 

Marble  monam^ts,  Ac 

Molasses 

MusicaI  Inrtraments 

Oil,  coal,  refLM  petroleom,  Ac 

*'   lard,  llnsee<l.  Ac, 

Paoerofalldescrip  *s 

Pickles,  preserved flmits,  Ac 

Hns 

Fotteryware,  Ac 

Screws,  wo^d 

Ships  and  other  vessels ...... 

Silk,  maoDf«ctares  oC 

Stlyerware 

SonfT •. 

Soap. 

SUrch 

Steel 

btet'l, manafactaresof  .    ... 

Snsar,  brown  or  raw 

Sactir,  rellned 

ToDSCco,  roaonfacla*d 

Turn  Dtine.  SI  !rit-«  (if 

*  m brellas  A  parasols 

Vsirnlfih 

Wine 

Woolen  nanafactnros 

HiscellaDeoas  articles 


I «• • • • a 


Receipts 

lor  fls«-al 

year  1865. 

64,U8 

S,78a,S48 

831,060 

1,84%8S6 

68S,48U 

MS.4aO 

UMt 

M8«87< 

685,976 

59,:68 

4&7.6Si 

819,:4S 

80,475 

1&0,«» 

884,788 

8Tb,S65 

1,484,888 

798  2  >9 

911,840 

8,944,880 

£8^,040 

F6,49H 

125.0(16 

69,067 

4,887,266 

16,995,702 

8.657,181 

779,860 

170,419 

54,072 

250,884 

8,047,218 

414,647 

1,082,476 

172.8^4 

124,802 

08,^21 

886,849 

1«,698 

847,918 

216,189 

69,708 

288,859 

791,416 

61,288 

174,062 

649.767 

828,790 

1,790.618 

8,017,0-W 

8.469 

111,147 

149,981 

4S,216 

7,947,094 

11,861  800 


Receipts 

for  flsral 

}ear  1866 

160,702 

4,640,!4U 

866,608 

1,849,648 

922,818 

640,602 

78.14T 

250  000 

656,842 

62,258 

666,102 

666,860 

65,888 

884.916 

800,609 

6C8,V83 

2.565,808 

1,867,825 
297,682 

6,410,181 
726,146 
101.401 
227,610 
102,418 

6,884.813 
29,198,678 

6.115,140 

1,189,485 

829,317 

90,861 

418,144 

6,817,896 
607,225 

1,172,116 
198,860 
87,9«8 
161,857 
456,101 
226,690 
865,478 
445,766 
128,522 
60i<,174 

1,896,096 
119,280 
912,662 
71J,211 
6<l7,58t 

2,837.405 

12,839,992 

248,178 

229,491 

8  1,227 

66,118 

8,814,101 
17,(i9^,857 


Feceipts 

for  fiscal 

ye  r  1867. 

168,849 
8,16.^480 

41.'S.l»2S 
1,P34,67J 

479,102 

8*6,652 

65,410 

180,084 

8)^1,008 

•«•••«« 

626,344 
454,844 

150,1*02 


Ftect. 

Receipts   cfthe 

for  fiscal     whole 

year  1868.  rec*Dt» 

106,886       .057 

1,010,460       .699 


1,002.082 
942,018 


181,418 
M0,77i 


3,061,414 
334,475 

8,684,764 
741,2t» 


718;a51 

9:8,068 

1,060,888 

077,628 


8,446,167 

90,161,841 

6,810.846 

8,104,666 

19i,7li9 

96,760 

495,694 

4,904,769 

■  ••»••  « 

748,077 

•  •  •  •  • 

81,891 

88,807 

953,806 

179,6  3 

•  •      •      •  • 

974,890 

88,616 

798,866 

797,164 


1687,746 

14,131,845 

6.685.664 

1,661.006 

88,568 

*  ■  •  •  •      ■ 

848,9rt) 
4,981,891 

840,396 

"2r\897 


•  •  •  •  •- 


17,'06 

600.  *6 

9,0«}  105 

16,24>.47S 

42S,.')93 

«  •  •  •   •  •  • 

151.4rO 

»,7<51 

5.40%  4^6 

12,741,'W 


78,783 
.  • . .  • 
189,9^9 

68,880 
745,808 
411,930 


879,980 

1,436,394 

14,947,108 

417,015 


4.1V0 
8,066,786 
«,736,U93 


.121 


868,548       .906 


.ISt 


.375 
.111 
.661 
.8M 


165,487  173,884        .090 


.831 
7.890 
9.074 


.016 

•  •  ■ 

.199 

9.840 

.'its 
'.oie 


.OTO 

.on 

.800 
.915 


.105 
.751 

7.M8 
.218 


.002 
1  60t 
8.&J3 


Tot.«l , 

Orou  Jleceip*4. 

Adverris  ments 

Bridtces  A  toll  roads , 

C'anals , 

Kzpreiss  companies 

Ferries 

Insura*  ce  companies 

j40tt*'rlcs  and  lottery-ticketde&lers... 

Railroads .a. 

Ships,  barres,  Ac 

htdgocO'Ches 

8  eamboats  , 

T**ie(;rNph  comi^aDles 

liieatrep,  operas,  cirenees,  Ac 


104,879,600    178.356,661    146,2-.>3,674    10J,974,608    52  451 


927.680 

75,v60 

92.421 

690.276 

1J6,1S3 

805,992 

29,249 

6,917.293 

431,910 

469,188 

688,(>12 

!216.060 

140.  t42 


990,605 
10^136 

99.268 
616.769 

48,7»4 
1,169,792 

78,072 
7,614.448 

89.3^ 
672,519 

84,8=6 
808.438 
202,591 


W8,0n 

11\1H1 

45.2'<3 

P5-,5«9 

187,.»40 

1  39rt,('14 

74,  84 

4,128.i»55 

4,87r 

241,997 

9!.Hn5 

9.M»,596 

191,0.50 


63,5fUI 

O.l-PO 

671,r>0 

189,«58 

1,988,746 

«6,^97 

8,181,837 

44,268 

1»«,6M 

963,460 

914,690 

914,701 


Total..     .. 

AvCtlOQ 

Brokvrs.  cattle. 


0,607,(66  11,262,430   7,444,710   6,280,000 


410,176    603,262 


940.240 
07,674 


186,727 
110,890 


•COS 
.U6S 


1869] 


UTTBRITAL  RKTXNUJI   RS0IIPT8. 


105 


Perct 

KecelptB  Receipts  Receipts  Receipts  of  the 

Aitl€lce  and  for  fiscal  for  flscal  for  fiscal  for  flecal  whole 

occapations.  year  1865.  year  18ft6.  year  1867.  year  1888.  rec'pts 

Broker^  ^Id.  Ac ^....  862,801  1,04S,704  

Broke^^  merchandise 596,474  870,090  415,170  986,488  .150 

Brokers  stock S»20S,798  1,582,247  

Dealers  dn  excess  of  $50,000 S,4S4,8S3  4,244,647  9.220 

Kiscellaneonfl 906,59»  9,229  .005 

Total 4,063,244  4,002,288  4,114,(1^  4,887,900  %Mi 

Apetbocarles. ^.  82,9ri  48,718  55,447  58,877  .081 

architects  and  ciTflenicinMrs 10,411  12,198  15,805  15,650  «008 

Aactio.esn. 80,545  89,724  98,085  97,448  .051 

^snkers 816.687  1,262,849  1,488,716  1,490,884  .780 

fillliaxd  rooms  ^ 54,025  103,929  134,711  186,993  .073 

Bowling  aUeys 18490  19749  20,858  19,608  .010 

BreweiB 77,747  105,412  988,155  970.206  .141 

Brokers 581,450  e78,«60  598,866  638,417  .282 

Bsilders ,..  82,278  181,178  117,581  82,284  .048 

Butchers 102,421  924465  917,894  925,077  .118 

aaimagent       66,'»2  70,637  84.627  68,150  .038 

CoDTeyaccers  A  real.estateSsgentfl  ...  88,610  84,442  99.596  97,865  .051 

]>ei]e  B,  wholesale ^ 8,541,105  6,438,845  8,880,281  1,854,388  .970 

Dealere,  retail 1,606,778  1,943,017  9,r47,881  9,163,682  1189 

Dealer',  who)e8aI,iaUqTior 400,693  801,531  983,185  692,046  .809 

Dealen,  retail  Uqaor 9,205,866  9,807,226  9,9fi6,684  8,949,915  1.696 

Dentists ..»^ JJ4,475  47,149  59461  68,668  .088 

Dlst'Uer^ 69,898  101,634  258,587  115,687  .118 

Batiog  hoasee 88,538  50,608  53,157  64,835  .029 

Hotels 415,2'49  580,022  763,666  656,795  .844 

Horsedealen 40,160  27,666  25,635  93,203  .018 

iBSsnnce  agenU 21,610  104,867  148,648  152,148  .078 

Lawyen 190,877  964,887  857.648  88»,031  .900 

Livery  feta)>1e  keepers. 65,211  90,180  100,866  101,760  .068 

Lottery-ticket  dealers 43,4S0  64,427  77,686  70,010  .089 

HaoQ&cRires 635,115  1,043,031  1,296.487  1,427669  .748 

Peddlers 459,^f99  679,014  708,118  734,210  .879 

Photographers 74,608  93,186  79170  53,102  .023 

PhysicfansAsiirge^iis £02,847  426,597  619,869  980,566  .808 

Rectlflcra.    48,781  61,801  80,470  87,7TO  .045 

Stalliona  and  Jacks 977,166  806,854  881,039  895,124  .206 

Tfaeatr<>8,maBeams,eachihiaon8,|Ac..  26,148  1,662  81.S98  48,555  .026 

Tobaocooiflts 18,579  816,675  5>,821  86,004  .045 

MisccUaneoos 90,258  952,180  979,020  992,046  .158 

Total 12,618,479  18,088,096  18,186,446  16,864,647  i.659 

Income, 

PromindiTidnals. 90,570.696  60,547,882  57,040,641  89,027,611  16.789 

From  other  soarces 169,K»  524,050  

Fram  tanks,  railroad  companies,  &c 7,948,796  8,884,496  4.885 

To^al  ..  ..           90^740,461  61,071,933  64,984,487  40,413,037  91.187 

ArtkUt  hi  Saudule  A, 

BUllardUWee 67,754  17,363  90,761  23,423  .0:8 

Carri  ce« 892,120  624.4fl8  183,656  924,005  .118 

Pianofortes 7,769  408,572 .001 

Plale,of  gold. 126  84  163  218 

»l8te,of  ayyer 117,987  916,490  287.679  863,845  .183 

Watches 918!)  426,627  619,0rt8  606,769  .818 

Otherartides   954,788  4,609  1,006,153  97,961  .016 

Total 780,966  1,693,128  9,116,674  1,194,840  .593 

FrODimannbctares  AprodactiOtts...  101,879,609  178,856,661  146.228,674  100,274,508  52.451 

S^Dghtered  animals. 1,26 1, 857  1,291.570  S62,211  6,031  .084 

Oroas  receipts 9.ft97,866  ll,v6/,4'^0  7,444.719  6,28",()69  8.285 

»sJe9 4,062,244  4,002,283  4,114,075  4,^37,960  9.581 

Special  taxes  (licen*s)  12,613,479  18,(<88.098  18 ,186,447  16,£64,5t7  8.559 

Income 90,740,451  61.071,912  64,984.487  40,412,037  91.137 

fialarii-a 9,8'W.833  8,717,396  1,029,992  1,048,561  .546 

Lefpicles  d»  raccesM's 546,7a3  1,170,U79  1,865,315  9,:i2d,411  1.477 

ArtideaiaacbedaleA 78iV26l  1.6»3,i23  2,116,674  1,184,340  .698 

Pw«port»,  Ac 29./W}8  81,759  28,217  28,280  .016 

Bankf.  railroad  e  mpsnies,  Ac 13,579,594  12,1(19,420  9,046,569  1,886.746  .976 

Penalties,  Ac 620,885  932,619  1,469,171  1,256,882  .658 

SaleoTiiamps 11,162.81)2  15,014,878  16,094,718  14,b5VJ63  7.768 

jpwlai  income  tax 38,929812  

Co  Kctora  of  cnstoms,  special  troaty 

«f(cata,Ae 3184,842  64,269  

AgRT^te »•« 911,189699  810,906,984  965,920.474  191,180,564  100. 


loe 


•OOMMSROX   OF  9BW  YORK  FOR   1868. 


[FArtiaiy^ 


GOII£RCE  Olf  NEW  YORK  FOB  1868. 

We  bave  delayed  this  year  pablishing^  oar  asaal  anooa]  review  of  the  oommeroe 
of  New  York  in  order  that  we  mi^ht  reviise  soine  o^  the  fignrea.  Haviiur,  how- 
ever, DOW  received  the  Cnstom  House  statemeDt,  and  brooght  down  oor  owd 
tabes  to  the  3l8t  of  December,  we  are  able  to  present  the  trade  of  the  port  in 
foil 

RBCJBIPTS,  IMPORTS  AND  EXPORTS  OF  LBADIHO  ARTICLB8. 

There  is  no  marked  variation  io  the  receipts  of  the  leading  articles  of 
domestic  produce  except  id  bread8tQfi&  and  a  few  other  articles.  Of  wheat  the 
total  this  year  reaches  13,472,940  bushels  against  9,6  2.537  bushels  last  year 
and  5,911 ,511  bushels  in  1866,  while  in  flour  ihe  figures  are  about  the  same  for 
the  three  yearp.  In  corn  there  is  a  very  decided  iucrease  this  year,  the  total 
being  19,087,265  bushels  agaiDSt  14,944,234  bushels  io  1867 ;  and  yet  this  total 
does  not  equal  the  receipts  in  1866  when  th(  y  reached  22,696,186  bushels.  The 
explanatioD  of  tbe  small  receipts  Id  1867  moybe  fouud  Id  the  early  aod  unex- 
pected closing  of  the  caDals.    Below  we  give  our  t  ible  ol  receipts  for  two  years: 


aacsiFTB  OF  Domano  paoouoi  for  1867  am9  1868. 


18S8. 
7,6i8 


1867. 
f,00tJ 


a.iii6t,pR«. 

Brea48tnflB~ 

Floar  bbls. ^ 1,761,664  a,(»7,60< 

Wheat,    baBh IM^MO  9,6^3.587 

Corn 1«,(J6T,36614,944,S84 

OaU 11.164,784  7,tN«4,479 

Sre 740,096     768,S«8 
alt 778,846    458,788 

Barley « S,l'6,198  a,9184M 

Graaeseed 90,969      7i,067 

Flaxseed —* 76,857    146,689 

Beans 107,713      46,848 

Peaa. 880,467     718,874 

C.meaUbbls ^      88,910      60,:88 

0.meal,bage 608,868    800,809 

Bnclrwheat  *B.W.floar,pk      r9,644      98,758 

Cotton,bAte8 671,8S1     666,411 

Copper,  bble 88.869      18,868 

OoDper,(»lat<^s 19,786      17.005 

DrMfniit,pkg 88,494      17,718 

Grea8e,pkKS 4,884      88,464 

Hemp,  bales 748      11,046 

Udee,No 667,^88    888960 

Hups,  bales 70,680      80,690 

Leather,  Bides 1,901,800  8,89'%260 

Lesd,pif(S 16,666      14,498 

Xola8Be8,hhd»Abblfl 89,000      88,001 

Naval  8t  ires  - 

Cnidetrp.bbl ^ 10,601      14,848 


nolrlts  inrp 

Rosin 

Tar 

Pitch 

01Icake,pkgs 

Oil,  lard 

Oil,petrolenm 

Feanats.  bags 

Provisions- 
Hotter,  pkgs.  ...» 

Cheese 1 

Cntmeats 

Eggs 

Pork 

Beef,  pkgs 

Lard.pkg8 

Jjard,ke($s 

hlce,pkgs.    

SUrch 

Stearlne 

speiter.slsbs 

Anear,  hbds.  A  bbls 

TWlow,  pkfs.... 

TobaocOfpEifrs 

Toba(Co,nhd8 

Whiek7,bMs 

Wool,Dkle«    

Drestfed  hogs.  No 

Rice,   roagh,  bash 


1888. 

61,414 
461.C81 
88.886 

9,688 
88,889 

8.658 
674,899 
69,966 

518,499 

,181,^1 

85,8*8 

186,484 
86,768 
96,144 
87,810 
16,716 

108,988 
18,181 

<909 

7,977 

85,685 

47,884 

49,810 

106,'2&7 

81,8»8 

1,000 


18"?!. 

61,488 

864,4tT 

S«,681 

6,718 

91,918 

4«198 

1,017,788 

8a.ict 

56S,86t 

1,884,148 

10a,611 

t98,M4 

166,779 

108,887 

161,606 

18,406 

4,668 

tl«,01T 

8,986 

8,»1 

1,844 

8,866 

168,087 

98,980 

146,640 

88,964 

83.658 

8,964 


Id  the  exports  for  1868  tbe  obanges  are  oot  very  material ;  aod  yet  tbe  oora 
movtmeDt  is  a  little  remarkable  It  will  be  Doticed  that  although  the  r  ceipta 
have  beeo  over  five  mill. oa  bushels  id  excess  of  1867,  the  shipmeota  have  been 
three  million  bushels  less.  Below  we  give  our  table,  showing  the  total  expof ts 
of  leading  articles  for  tbe  two  years : 

xxpoaTi  or  lbadisio  AanoLca  raoM  xaw  voax  Foa  1888  avd  1867. 


Article*.  1^68. 

Bieadstnffs-Flonr...  ..bbls*  1,(!08,968 

Commeal bbl-.  IM.OU 

Wheat • bueh.  6,768,87 

Bye bah.  159,994 

Barley bueh.  91 

OaU bash.  9<,8i1 

Corn rnsh.  6,989,995 

PesB hash.  189,986 


1867. 
an,Q89 
151,668 

4.4fi8,'174 
47«.8k0 
8i«,898 
144,668 

8,147.818 
660,188 


18091 


COMUBOX  or  KXW  YORK  TOR  1868. 


107 


Candlei boxes. 

COiJ tOOB. 

Coffee < b«Ki* 

CoUOB b«lM. 

DoDesiicfl ....b<lefl. 

Dra^ pkgB* 

B&uwini Cises. 

Uop« bH  es. 

Nat«1  iCoiw— Spfriu  Tv^pn^ine bbls. 

Koein ...bb's. 

Tv bblfl. 

Oilcake.     100  lbs. 

Oii-Pecroleam gallB. 

Wh-IeoU galls. 

H  ennuU gftll"* 

L*tdoiJ^ gala. 

PlOfliioiu— Pork bbU. 

Br«f bUe.  Ats. 

B«oon 1001b«« 

Pntter 100  Iks. 

Chseee 100  be. 

LaM lOlbn. 

lOU  Ibf. 
pkge. 


TWow. 
Tw..  . 


•  •  •     •  • 


Tobaeeo   Leaf. ...  hh  s. 

Tobacco t»alea,  ciBee,  Ac 

dm   Jfanoikctiired../ lb%. 

Wbtlebone • Ibe. 


1968. 
74,1« 
60.74« 
46,6S1 

47,«TO 

81J93 

18,838 

18,044 

844.796 

9,84i 

818,8^8 

KMM9,9i8 

900,184 

448,760 

189,000 

88,40:2 

76,6611 

8*20,0  9 

9,961 

413,674 

482,553 

139,483 

97,684 

41,(»40 

41,5  4 

T,873,7«0 

675,189 


1867. 

6s2^! 

7^6» 

44.664 

447,617 

18,644 

5l,8S4 

23,b59 

8.53-i 

88,115 

2-»,lJJ4 

4,606 

63M.045 

89,866,960 

877,605 

675,9ti9 

186,407 

86. 3M 

6^861 

P8,177 

44,066 

687,648 

6i'4,698 

184,986 

n,7«r 

79,08S 

71,661 

7,898,7» 

600,686 


Bfiow  we  spve  the  value  exported  to  each  conutry  (exclosiTe  of  specie)  doriog 
1867  »Dd  186ti: 


To  1868. 

GraetBriUla , $78,887,404 


FrtDce 

Hollaiul  and  Belgimn I, 

GtrmaiiT 

Other  Northern  Karope 

►pai 

Olher  Soatlieni  Snrope 

*M  Indra t 

Chiukiid Jqpaa....... • 

Aa»tralia 

BiiflhNACotonlea 

Caba 

Hayfi       ...  

Other  w«t*iiidiii;!;.'!*.*.;.!!!!.*!;!;!^!!;ill'! 

Mexico 

^ewOaiiada — - 

VenesoeU !.•„ 

Biti^Qiiluui 

Brtall ; 

0Ui»  r  8  American  porta , 

Allocheiiiorta , 


9,091,857 
6,009,100 
18,964,048 
1,616,768 
9,175,805 
6,98),870 
101,099 
a.7l8,W0 
8,876,469 
4,«S8,617 
7,166,890 
1,408,706 
8,168  090 
l,a31,190 
4,650,409 
660,816 
1,894,011 
8,480,781 
8,&89,186 
1,481,414 


1867. 
$100,547,848 

1  ,470,688 
6,4.^,^68 

90  497,616 
1,8«,116 
1,41«,119 
7,994,556 
11,881 
9,4541)04 
9,85^6,099 
8,8'i5.949 
6,v49  867 
1,874,170 
7,19«,005 
9,188,758 
8,146,464 
679,721 
1.111,829 
8,060,591 
8,562,  08 
S,19i,977 


We  DOW  bring  forward  oar  tables  showing  the  total  foreign  commerce  at  this 
port  for  a  series  of  years,  and  for  that  purpose  use,  with  a  few  cbaoges,  th? 
figiiKBgivfD  by  the  Journal  of  ComnMree  several  days  since.  It  will  he  oeeo 
tbat  tie  exhibit  for  the  past  twelve  months  is  less  satisfactory  ihau  luRt  year* 
the  exports  being  less,  while  the  imports  are  about  the  same. 


XXPORTS. 


The  exports  from  New  York  for  1868,  exclusive  of  specie,  reach  a  total  of 
$164,006,102  asainst  8186,790,026  last  year.  As  we  stated  last  year,  howeven 
H  should  be  remembtrecl  in  receiving  these  figures  and  using  them  as  a  basis 
upon  which  to  e»*t  mate  the  trade  of  the  country,  that  tbe  export<i  from  t  e  S3nth 
bave  been  large  each  year  since  tbe  close  of  the  war,  while  the  impor's  have 
te'Q  unai] ;  so  also  doriog  the  pust  two  years  Oaliiornia  has  exported  an 
Qaosoal  anoont  of  breadstuff^.    For  these  reasons,  the  figures  showing  the  com* 


108  OOMMXROX  OF  Hxw  TOBK  FOR  1868.  [Fi^fruoriff 

merce  of  New  York  (?o  not  bear  the  same  relatioD  to  the  trade  of  the  roaotry 
as  formerly ,  that  is  to  say,  the  exports  do  not  now  represent  ne  rly  as  large  a 
proportion  of  the  total  exports  from  the  United  States  as  during  and  previons 
to  the  war,  while  'the  imports  represent  a  larger  proportion  of  the  total  imports. 
The  shipments  direct  to  foreign  conntries  of  cotton  alone  from  the  South,  dariog 
1867  aod  1868,  reached  aboat  one  million  bales  each  year,  while  the  total 
amount  of  naval  stores,  tobacco,  Ac,  sent  direct  from  that  section  waa  abo 
large,  and  yet  foreign  imports  for  the  South  have  been  to  a  very  great  extent 
received  through  l«ew  York.  We  think,  therefore,  when  the  figures  for  the 
whole  country  are  made  op  they  will  show  a  less  unfavorable  balance.  The 
following  statement  exhibits  the  quarterly  exports,  exclusive  of  specie,  for  the 
past  six  years  from  this  port.  As  the  shipmeats  of  merchandise  are  reckoned 
at  their  market  price  in  currency,  we  have  given  in  the  same  connection  the  range 
of  gold. 

XXPOETB  FEOM  NEW  TOEK  TO  rOSXION  PORTS  RXOLUBIVX  OF  SPEOZI. 

1868.  1884.  1886.  1868.  188T.  1888. 

S  8  S  $  $  S 

Utqairer 60,614,008  41,4»,')66  46.710418  60,073,681  «,8T6,879  4S,0«L8e8 

FfieeofGold 1534-179^  151I-16H  196I-S84I  1M«-146|  18»t-140l  18^144 

Vnd  quarter —  41.046  796  48,446,686  S4,S16,067  46,766,886  46,370,901  41,881,668 

Price  orOold 140^-1K7S  166}-S6«)  198^-1474  135-167f  139}-141l  lb7-141^ 

Mqarer 8»,8i5,r87  70.519,184  40,5^1,493  88,881,9US  88,993.668  86,548.086 

Price  of  gold 19;?i-145        191-986  188|-146i  148^-1474  188-1461  140^  150 

4thqnarter 40,9«),747  59,496.966  67,178,491  46,800,485  68,914,798  44.101,982 

Prlceofgold 140|-156|      lb»-960  144H149  131i-154f  183^1451       189-140} 

Total 170,718,768  »ijBS9,549  178,196,699 199,899,664  186,790,090 164,066,109 

We  now  annex  our  usual  detailed  statement  showing  the  exports  of  domestic 
produce,  foreign  dutiable  and  fr  e  goods,  and  specie  and  bullion,  during  e  ch 
month  of  the  last  six  years : 

BXPOETS  OP  D01CB8TI0  PEODOOB. 

1868.  1864.              1865.  1866.  1S67.             1868. 

J^nufiTJ $14,899,898 111 .448,968  $16,038,691  $19,784,997  $13,911 ,689  $ta.766,496 

February... 17,180,583  in,6«*,918  15,«4i.6ri6  16,768,190  14,615,«4l  18,W8,h74 

March 16,:d7,H89  14,410,061  18,898,665  38,991,485  19,679,955  1  «,889.808 

April 11,581,988  13.9B8,713      7,9i0,709  93,596,828  16,979,383  13,?.7fi,76i 

May 18,188,610  14,610,498      7.e83,5«5  19,981,69?  12,615,099  J4,39T.050 

Jans 14,780,073  17,{<96,495      8,079,803  9,601,0^  14,S46,7t»  10,6S4,'44 

July      15,998,008  96,851,678  19,591,246  18,057.476  18,6*'6,"98  10,638,848 

August 10,W.6,959  96,617,850  14,501,880  13,643  004  13,116.096  19,76»,9;8 

September 11.717,701  15,695,548  13  768,484  1.636,f)I0  11,109,100  11,316,493 

O.tober 14,613,454  16.740,404  9n,98H,9i6  14,598,664  16,67w,5j0  I8,ft54,t<« 

November 11,418,691  13,015,064  39,763,327  18,651,464  90,(06.540  13,8Sl,12C 

December 13,846,151  19,948.538  23,663,584  16,817,616  18,443,177  14,589,3:^ 

TctalB $164,949,177  901,865,989  174,347,154  186^656,969  178,%10,409  166,076,678 

EXPORTS  or  POEEIQE  #EBB. 

Jinuary $73,111  $49,989  $106,491  $88,801  $114,307  $19.6^0 

F  broary 43,880  T7,698  74,798  90.605  86,803  9&,^7 

M^rch 918,«85  79,667  807.321  67.167  31,183  94,761 

Apiil    74,949  48,461  67,544  130,251  88  389  113,489 

May 103,337  40,898  64,500  151,893  93,4'>3  ia').9« 

June 49,'i80  75,709  86,417  65,074  43,214  89,«4!J 

July    77,2.33  949.404  98.v86  97.369  »0,1»»  87,975 

AUKUat 90.815  126,5:^7  46,045  50,730  94,096  lH,t92 

Pep.e<wber 65,400  848,743  64,003  99.878  9,4it8  80,5i<) 

October 149,395  69,966  88,985  83,061  4,446  10.8.'9 

Norember 66,5^  64,914  109,165  64.001  8,515  9,763 

December 65,555  495,031  94,166  44,345  89,694  89,381) 

ToUlB '^,087,223  $9,143,458      $938,785      $706,483      $486,655      $6odim 


1869] 


COMMXRCS  OF  HXW  TORK  VOR  1868, 


109 


izpoiTs  OF  vomnoN  mrriABLs. 

18M.  1F64.  1866.  1866.  1867.  1^68. 

Jinmrj $fl6a,?75  $66M85  $432,S66  $384,900  $42i,7M  $869,151 

Febnutfy...              ....  610,009  46e,493  688,609  400,7-9  B0.J,66^  44'5iJ8 

Mtrrh 7B8,aW  6W,ft69  191,917  8«0,165  7fi4,l:'8  6' 5,^1 

f1>rfl 876,924  558,819  483,8«5  654,019  h4\8-24  648,9tt) 

MAJ 602,^4  669,888  8^210  769,^67  665,0  ^4  85^544 

i^9 998,067  1,984,918  181,425  606.265  718,137  6ll,09 

Joly 448.601  6,137,460  902,583  401,724  882595  444,735 

Aa^it. 931,774  9,«81,789  185,179  926,788  717,161  558,078 

September 988,979  9,46»,188  900.854  80«,244  89l»,851  8  8,'.  55 

October 860,614  1,104.990  222,079  188,103  797,23^  740,<»'?7 

NoTember 863,948  1,196,050  908,W»1  968  600  61 0,460  617,907 

December..  ..^^ 468,676  1,639,509  988,606  661,657  633,115  415,675 

Totrii $5,495,579     $17,894,005     $3,440,410    $4,967,109  $8,142,961   $7,889^ 

szroETB  or  sraon  amd  buujon. 

i»n $4,694,974  $6,460,070  $1,184,853  $9,706,886  $2,651,851  $T,849,S-25 

Feb 3.966,664  8.015.067  1,023,201  1,807,030  9,124  4(il  4,203,Si5 

March 6,586,449  1,800,550  881,913  1,045,0»9  1,891,141  8,694  919 

April 1,079,884  -  6,883.077  871,240  688,876  9,261,283  «,( 196  179 

May 9,115,676  6,460,980  7,255,071  93,744,094  0,t>i3,154  15,98«!2ai 

Jane 1867.774  6,588,100  6,199,479  16,600,95fl  6,794,i79  11,823,0-29 

July 6,268,881  1,947,820  728,986  6,821,469  13,519,891  10,r>84,55H 

Aog 8,485,981  1,001,813  1.654,898  1,587,551  1,714,594  4,«90,98«J 

Sept. 8,480,886  9,835,808  9.494,978  834,550  9,201,968  1,954,723 

Oct. 6,910,156  9,517,191  9,516  996  1,463,460  1,182,081  1,W)8.789 

Not 6,488.868  7,967,669  9,046,1»0  8,776,690  1,733,961  1,181,085 

Dec 6,950.058  6,104,177  9,769,161  8,297,270  6,854,548  1,717,9C5 

Total $48.75i,0C6  $60,896,691   tODfiW^m  $63,568,790  $61,801,048  $70,811^ 

TOTAL  XXP0ET8. 

i«n $10,606,868  $17,609,740  $10,746,451  $99,814,648  $18,900,908  $9J,798,152 

Feb 19,400.148  17,911,170  16,774,008  19,009,587  17,578,967  18  2i5  414 

March 98,696,089  16,883,286  14,799,626  94,713,856  29,366,867  17,258,3d2 

April 14,004,010  10,754,069  8,589,897  98,899,970  90,124,879  20,&34  3J9 

»»y    16,009,780  91,682,200  15.613.346  86,937,067  99,346,<i99  8l.2(i9,790 

Jnne.. 16,495.903  95,837,531  18.446.116  26,!58,874  91.827,891  23,132,627 

Jttlj 91,009,787  88,585,866  18,536.061  19,307,993  27,588,755  21  60*i  116 

Au^ 14,464,810  20,977,«89  10,235,474  14,511,361  14,571,947  18.01 8  177 

8«pt 16,499,518  91,789,826  45,523,314  19,805,778  14.904,407  14  155,06.3 

t>ct   91.910,549  20.431,788  23,788,4«9  1\275.«83  18,iki8,25l  16,314,«^0 

Not    17,209,488  90,478,690  95,136,763  17,750,755  92,408,7;6  :5  .'«.*,8S1 

Dec 18,819,834  97,410,488  95,677.766  90.710,807  20,912,584  16,705;ii'0 

To:aI $990,466,034  $979,648,168  $903,680,989  $954,883,954  $988,591,078  $284,0^,701 

1  be  shipmeota  of  specie  daring  1868  will  be  seen  to  be  aboat  4  millions  less 
than  last  year. 

TOTAL  IXPORTS. 

Id  1866  the  imports  reached  the  large  total  of  9306,613,184  Compared 
with  those  figures  there  is,  this  year,  a  falling  off  of  aboat  65  million? ;  bat,  com- 
pared with  Tears  previoas  to  1866,  the  total  still  continae  large.  In  the  fol- 
lovrag  we  claffiify  the  total  imports  giving  separately  th-j  dry  goods  general 
iu<frwbHDdi>e  and  specie : 

FOaiXOX  IMFORTS  AT  KKW  TORK. 

1864.  1865.  1866.  1867.  1868 

Diy^ids  $71,689,759  $99,i'5.,140  $126,222,855  $8^,682,411  $80,905,834 

<i«Dtr  Imercha.dlae 141,240,886  iaO,557,9H8  170,812,300  160,7  9,725  ll>8,^02,»jll 

8p«:ie 9,263,699  9,198,981  9,578,099  8,306,839  7.0tJJ,3»sl 

TottlimportB. $918,ll»,760 $224,749,410  $806,673,184 $2^9,618.475  |951,1937s^ 

We  Df'W  g>ve,  for  comparifioo,  the  preyioas  years  since  1851,  cla-s^ifyiug 
them  into  daiiable,  free,  and  specie.    Under  the  head  of  dutiable  is  included 


110  ooiamoi  or  mw  tobk  ro«  ISffi.  [F^niary, 

both  tbe  vilae  entered  .or  conmniptioD  and  tbkt  eotend  for  wftreboiuiiig.      Hit 
free  goods  ran  very  light,  ma  nearlj  all  tbe  importa  dow  t,n  datUUe  : 

roKnsv  iin«an  it  kw  totw. 
TMt.  OotUMa.     FTMOooda.     Spade.  Total, 

isu |ii<).E»,Mi     ta.TM.TTi    •i.ow.Ms    |isi,»i,sn 

USt llS,tK.Wt       lt,XS,>il       l,40-<.>»       ltt^«.>» 

iSBi itH.ai«,4]i      iiisa.«si      t,4;B,0Bti      iBi.on.ui 

ISM iei,4M,i«4     ia,nH,!>it     x.Hn.&n     isi.Mi.sn 

laiB »«,«0OMI       U1I«.IH«  BU.hSI       IGTSWDS 

1-B* l«L8S»,Ma       I7,(»l».'79       MlMiS       tlSBM.HM 


,     1»,IW8,0M       .  ._  _-,-,„- 

.   iit.Ma.ns     is,K«,^st  viB.»i 

.    101.40 1. <SS       M.iiOO.  4T  8,W,430 

w.»->.sis  n,0((,<is 


i4s.ftTO.4ia     is.«i,ai 


i«.sii      iBT.eiwn 


Slt.HI.4W 

SOK.SI&IHt 
tt»,M8.4IJ 


iBBB si»,»8.aji      w,Mii,isJi      t,ia3,tai 

IBM i6ijm,tei     u.D(>i.s83      B,9Ta,(iw 

IBK .      .,.,     »38,WT.U66         !l,0*i.l81        s.so'i.asa ,-.-     - 

1S88 nt4M,4M     u,m,on     %a!M3a     mi,iw,sm 

Bvlaw  we  give  ft  deiail«d  sisleroeDt  ebowiag  tbe  receipts  rrom  foretfiD  ports 
dariog  eucb  laoiiib  of  tbe  jear,  for  tbe  list  aiz  yean,  botb  of  datiible  and  free 
goods,  anil  nbat  portion  were  ealered  lot  warebMdi  g,  sod  tbe  Taloe  whhdrtitD 
rrom  wareboose : 

IB'l  IB(R.  IS '8. 

Jan  arr. tl74l,mt!  IS  SI  ■ii.ois.sea  $1.t»f« 

FebU'tj 7;m,lM    1  91     J  IS.SM.lill    lOSMBI 

MvcB U,4fli,BTi   :  »    t  ji,Bn.*i4   iiwgiio 

Ai.ril MSS.S10  DO  I  ia,-O07«  »,«■».»» 

Har T.»»l.«l  so  I  MS)),T4T  10M(.3S 

Jnne fl,S?B.Jtl  W  1  8,M  JSn  a,T!e.t11 

JlT S.OM.*ia  'M  1(  11.080,8-0  It,l>S.9'> 

Avian lO.INM.MO  St  U  l]l.ft4T.8S«  li.WJb.lIt 

Uapt  mb«r I1.94.US  M  II  11.149.tMil  14.19U** 

"iKilier IISBSMB  M  W  U),»M,«»  Il.*".4'» 

NoTcu.tarr 10,OU.Vta  99  U  a,]BS.UlS  R.Tin.S'l 

StCsBbar. lu.tJH.B'n  U  H  M1^8U  7,*SS.t» 

Total tu,n7.tM  ioi.tea,sii  hmst.us  iss,tOB|tio  rniui  ou  ii7,m.ais 

iMPoan  iHTiaio  TiaiHom. 

Jarua-T tt.l-l.TM   (SSTI.BSe   t4.En,llB (10,311  jm   $1  It   |^MT,8n 

•  ibrnuT. SWT.-m      4.9lll.K9e     a,HS,l«I    ll,aK,tTT    11  14     i.w.au 

M'Th fl.OW,!«I      fcBll.WS     "C-nKS     B.M9.10O     I  W   H.SM.W 

.  fl.4M,«M    a.iaG.Ma    i,448sti  id.iu,wi  i*        n  lo^^^ 


.     -,...,...       fl.t88.049-   1>1,«»,'0T    U  »    10,Hl,D5l 

I  UsUW^Ati    T,us7vi  io.MiT.oio  ic        x  ia.o«s.m 


.-., „ -. T,84ri,««  n.aoi,nt  ii  n  ]o,6ti.« 

Auniat 4,4l«eRl  Ul,4ai,«N  1,0nt»4l  S,1«I,4D«  t           H  a.<8U.e>" 

S«.trnib« a,4"l,S;0  B.as-,Ba8  4,W8,«IB  1.817.0*8  (           n  (.flo*,*"; 

Uc'obvr     4,]9».4S1  ItSlMS  S,»0  ,998  8,ll«.Be9  1           11  fi,Ull.4W 

Novemriar.  4.«M.<ia  4.^aO,B31  B.lM.ns  S,MB,BJ9  t           »  T.tW.Kl 

Dactmbar B,ei6.Ua  4.»ii,S«t  I0.KIH,W1  lu,109,0t9     t IS  i^tt^ 

Total 60,144,887  n,18a,4aS  88.741,149  80,(81,938  nO,TD«,OS)  UM,tOI.«» 

Jannarr $1.41S,C4»  1841,050  a8t0,in  tl,«88.7IIT  tn7.8!0  t'-''^^ 

Pebniar; 78S.M1  Wl.lbS  Mu;0«8  1J04,»SS  118,184  n^rq 

Hanh l,K8,ilM  1/'R,S«B  880^00  :,17B.l  T  918,nT  Sl'.'J 

April l,3Stl,H«  UHUn  9U,aM  l,1U,GSa  1,181,991  «M.«8 

HaT 7iajni  I.OeMTS  S18,BI8  909,410  1.II0,108  H^ni 

Jiu.g 781,a-«  1,1I8,<H  «G1,tM  1,001,830  1,04^040  7B1.M* 

July 088,880  917,M4  SI«,4Bt  889,H0  7M,7S8  1.<I>U4) 

An^nit        NI9,T81  S88,4n  830.688  9  1,977  St4,tM  SAIBS 

•••pianbai. 78il8S4  BB1,ES7  7K,4«S  840.081  8(H.»7  >'*'''S; 

OctubH 741. 6tB  688.079  79^^(M  1,471,961  704,881  l,**?' 

November eu,iaT  B1i,97«  1,1^9,948  87<,0I4  l,0ia.<Ma  I.»t£^ 

Uacembir BU.(f74  1,1»,71S  913,987  947.999  TV.lOt  M1.M0 

Total •tl,BeT.DOatll,1Sl,>0)S10,110.SITS13,001,tS3«lI,Ml,Ultll.3HIB' 


1869]  ooimuoK  or  nw  tobx  roa  1 


leas.  IBM.  1MB.  ugs.  iwrr.  tsbs. 

'jawT. llOlJWa  «:41.im  $U,iS8  tlW.TTI  HW.TIB  |!S8,BT4 

fi^j iw-tm  e8,i»  u)B,*04  1TS.1M  i»8.m  «s,sn( 

HMch iSAfiia  ic4,48T  sis,Mi  xse.sM  14I.MT  iWrm 

'Jirtl lOI.WM  WS.SU  M6.4M  1HI.8ir  171.710  871 W 

■ti;    lai.iiT  «)M.on  in.UBc;  a!U.(ns  sm.7a  4774SS 

Jdd* im.WI  IW.Tn  SM.O-^  «.Gia  4V9.134  BSH^llt 

f^T isitu  :ts.nei  »».««  3u,3ki  w.eos  iM.4«i 

S(pi«nihi'  .„;*";;■;;.■;'  78,mi  6a*«  ie4.«M  M»a!*7a  a«^im  Boe,6M 


Ociobtr  ._ ■W.flM  BM.TTS          77,M»      1,484,118  3S3.Tt« 

""tm-WT 103,144  lil,7W        Ml,GM        8.11.837  1M.319  mijaio 

[•-Mt llg.4Ba  114,978        liT,UM        MJ.OBS  MS,Ol»  ()»I,4W) 

Tot»i,_ iijawii  «i,wa.B»  •s.in.Ki  •s^ia.ou  •i.sot.sw  »T,(ia5,se» 


£*"«! /l!(.0»I.«4*  III.IM3.<MT  ll,47B.«88  «.fl9a,6ST  »,8t((,7(»l  sSsiS^ 

l>*nh lB,»W.BaS  9a,«n.ll9  18.013,IR8  M,tat,MO  «^ia,9t4  W,BI1HH 

ApiU lI,Ml,ua  M,1re,aBl  14.n4,tH  l4,e40Kn  ».(I»L»^  S'.'es«84 

lur i4.tM,9»  x,vn,nt  »,stmo9  18.818.441  n.fa*,xo  n-uoixt 

'ma 1«,G9T,BI«  ]ia.(>MkS14  18,»G,S«1  I1,7U.8!)I  K,9IIT,M»  »L4Ti,KI8 

Jtlr lt,001.«TT  B,88^1M  19,18,838  W.W:,k>1  ».ieH,me  HLBiftttvI 

Anstnt 16,DS8,:>W  lS.lXl,4fiS  M.4tS,fl  8  n.S81,«afi  )l,97S.ft31  x£wiil791 

BtpieoibcT. IS,4HI,»40  10,U9.4S»  U.SI4,496  97.0W.IHI  «U<N7,90g  n.V8B.3Sa 

Ociobsr ]e,e^,9in  l<>,(W8.a9  9',]S4.t>7S  »t,8^IB4  ia,43H.48«  lti,9lH71IO 

SoTtmba lS,M&,mB  »,NI,MB  17,«(e^l  10,710,l»4  lB.87l.in8  18.8  i.sao 

BNtiBb<rr 17,190.098  9,9i&,Wie  9(I,M8.UW  19,ttti,174  UI,S7Ii,B8J  14.0X8,0117 

Totd mjU^fiTt  iia,I»,l«i  »t,Ttl.4iB  806,813,181  iiu|»u|4n.9uii»^ 


Inurj. S<.8Sl,BSt  K»".41S  tS,«n.SH  t1,4«.ffi8  tB,t80;4gl  tB,131,eU 

'(brurr. S4H«.irt  ^t8^»n  B.m3,ni9  7,»W,IM8  1I,7»4,i4S     9.049.33V 

MtiA 8,4SS.M0  B.91.\991  B.^WBlS  7,844',44  13,81H.4H     Hl»'9.1»4 

Apiu •i,iB«,«e3  I4.!tt».)n8  7.B3it,Dni  s.MO.tao  s.esa.aio   ia.i4a.8.st 

lUj 9,TW,TJS  OBW.MBa  10,«T7,nD  9.4iU,M)7  9,941.943     e.ulvsBI 

*«!»• a,s8U,SSl  iMl.c!*  e84«."68  e.9B7.431  B.HI0.9»7      fl.B8.M3 

Wj 4,m,9M  S.88B.KJ8  MUWl  9,0^.243  7,flfl  .SH9      e.B.»,79« 

Avgul 6.4«949t  7,8»m43  90x1, ItB  lll,B.10.eU<  10,4VI.IKI0      9  blftlUT 

eaptnnbcr e,9l»,B81  B,8  1.8a  S.Wl.«ua  11.091,19l  8,9W.4^1     lU»B,0t9 

Onober  4.tiM.6H  6,EI>4,1K8  *,BM9,.S«  s,73i,-fl»  7.7»1,T9L      B.fiBJ.tMiS 

NoTRDbar 41194.1811  ii,8JS.S8i  4,»i'.;*i  B,i3B,:as  B.8;8,MS     6.i'H.S41 

Dtcrabir.. S,7^tM  B,4Uii.'/t4  8,Bsa,(ni  4.'«t,eS8  E«U9,.89     B.B7Gv499 

TattI BI),BU,1BI  01,480,719  8U,BMis49  ioO,Ml,381  10e,7T^0U  iaaiiMa,9a 

Below  we  give  in  deUil  the  reodpta  fur  costoms  at  New  Ycil  (kch  moDth  or 

the  Ust  five  jean  ; 


Jns-rT H  M>00  ti.KUtin*T  $lH3\iai  H   t<l,4U948  4B  STISa.4S41 

Fibro-n ':        nn    4.TMi,iiT  la  it,<ot,ir>74  ii,4ue,4)a4i    b.smj.'s*  aa 

Xlnb :  1041      D.8B1.0W)S    11  ]T>.1DI  SI    11,971.418  19    ]I,19B86I3S 

Apii i;         USD    B,ioe.9H4S4   ]o,9»),awiT8    9,8n,7ui  4s   icu-jSitno  si 

Kit: j  M4S      e.l'n.433  0e    1I.4IN,4M  lO      9,M0.TBe73      R,m47H4a 

Jane J  18  48     I.HSI.UTE  81      9,Mg,'Me  3S     1.7»,:33  SO      1,G?6,ai>a  89 

f>U I         4844    9778.'i7a«s  ii,Kntea«o    9.'>ug.48i  94    s.isi.^m  so 

Aagnt <  8311  la.I13.BM  50  19.SI9,7.DH>  11,e'IH,3U0  48  Il,9»S.I>e6I8 

Bcpi MM  li,BJ*,61S  84  ll,8-3.1]4  83  11^11,104  18  11918,789  99 

Oil )  MBS  10,»7».61B  01  ll,0(M,n8  08  8,68  J,  MB  00  H>,'l6li,»TI  81 

Hot 1  sew  9,938488  Be  T,71-,883  81  8,9-11.  all  BO  1,-^.UB«  BS 

Mc 1  M61  8.B40,T608T  B.7U7.6479B  0,118.801  S«  0,317.3(1018 

TOUL. 08,037,1*1  Bl  IOl,Tn,e0a  M  133,U79,1BI  00  ]14,uaC,99D  84  U>,1B«,7U  at 

Tlie  total  coslom  rereipto  for  Ibe  year  amoant  to  9U3,29G,7I2  62,  as  given 
ID  abore  table.  Thh  is  a  dfcraiBe  of  about  one  million  dollan  on  last  Tean 
total,  and  abont  firieen  milliona  lese  tbao  the  total  of  1866,  bat  larger  than  an; 
jai  piBTNiw  to  18C6. 


112 


ooMMXROi  OF  HEW  TORK  FOB  1868.  •  [Fehruainf^ 

DRT  aOODB  IMPOBTS  FOB  1868. 


It  will  be  Been  in  the  foregoiog  table  claesifjtDiEr  the  imports,  that  the  total 
imports  of  dry  goods  the  pest  year  amoooted  to  $80,905^34,  against  $88,582411 
for  the  previous  year,  and  9128222,855,  for  1866,  a  decrease  of  abont  46  millioos 
on  the  total  for  1866,  and  of  8  millions  on  the  total  for  1867.  We  now  give  a 
detailed  statement  showing  the  descripifon  of  these  goods,  and  also  the  lelatiTe 
totals  for  the  preceeding  Gve  year? : 

DCPORTB  or  DIT  GOODS  AT  MXW  70BX. 

Description  of  goods 1864.  1865.  1806.  1867  IflSS. 

Monof  fr-WooT. $31,411,968  $86,058^90  $r0,406,m  $88,676,601  $»,16a,tt6 

Cotton. 8,405,946    15.449.064    91,987,490    15,800,Si04    18,661,001 

bilk lK,lfi4,(80    90,471^.910    94,8:7,784    18,666.817   91,71^801 

Flax 11,691,881    15,591,190    90,456,870    19,949,661    19,00146'T 

HUoellan'sdrygcods. 8,956,680     4,661,586     9,98^663     7,689,588     7,881,489 

Totalimports $7^6891^9  $99,061,140 196r99S,866  $8i,589,411  $80,906,834 

The  decrease  daring  this  year  has  been  principally  on  woolen  goods,  while 
in  silk  there  has  been  an  increase.  We  now  giro  a  summary  of  the  imports 
each  month,  from  which  tan  be  seen  the  coarse  of  the  trade  throngh  the  year. 
The  retarna  for  the  pr^Tious  four  years  nre  added  : 


TOTAL  DfTOBTB  OF  DRT  OOOOB   AT  XXW  TOEK. 


1864. 


January $8,184,814 

February 9,487,454 

M»rch 12,686,197 

April 6,990,946 

May 6,08U86 

Jane 4,801.708 

July 6,76i,760 

August 7,69»,800 

September,  4,107,449 

October 9.996,100    19,167,881 

November 9,985,107    19,667,987 

December 9,658,567   10,686,951 


IWS. 

$2,860,636 

8,798,690 

5,894,699 

8,969,706 

8,981,468 

5,448,069 

7,996,  V88 

18,46;i,966 

11,198,957 


1866. 

$15,769,091 

16,701,578 

15,888,373 

7,886,564 

7,999,11^^ 
6,775,944 
10,797,468 
14,879,838 
9,176,675 
8.480,660 
7,959,986 
6,989,781 


1867. 

$19,998,879 

16,786,616 

10,997,679 

5.974,466 

6,486,451 

4,564,079 

6,589;576 

19,608,019 

7,851,993 

6,889.788 

4,897,898 

8,099,850 


1866. 

$5,119,« 
8.674,770 
6,861,054 
4,8-^418 
6,88^094 
4,181,698 
^971.647 

19,868,606 
8,487,708 
6,709.189 
6,614,691 
8.616,606 


Total $71,589,759  $99,061,140  $19d,9tt,865  $88,681,411  $80,905,894 

In  the  foregoing  table  we  have  indicated  the  extent  of  the  imports  each  month 
since  January,  1864.  As  our  readers  may  be  interested  in  seeing  the  totab  for 
the  anterior  period,  we  annex  the  following,  showing  the  total  imports  of  dry 
goods  at  this  port  each  year  since  1849  : 


IMPORTS  OF  rO&EXOH  ORT  O00D9   AT  Xrw  70BK. 

luYoiced  value.                           Invoiced  value. 
$44,435,67611866 $98,86i,K98  1 1869...., 


1849....  _ 

1850 60,106,8^ 

1861 69,8*i,781 

1869 61,654,114 

185:? 93,704,211 

1864 80,84-2,936 

1865 61,974,062 


1857. 

1858 60,154,509 

1>59 Il8,15»,fi94 

186» 103,997,100 

1861 43,636,680 


Invoiced  valne 
$66,191,997 


a0,5Ji4.129  1 1863 67,274,547 


1«4 71,689,769 

1%5 99,066,140 

1666 126,9«.6» 

1367 83.689,411 

1868 80,«05,»4 


1860] 


DIFOBTS  OF  MXROHAimnS. 


lis 


IMPORTS  OF  KBJICHAHDISE  OTHER  THAJf  DRY  CfOODS  AT  THE  POET  OF  V.T. 

The  feliowiD^  table  shows  ia  detail  the  imports  of  merchandise  other 
than  dry  goods  at  this  port  for  the  year  1868.  In  the  Magazine  for 
Febraarj,  1868,  page  134,  will  be  found  the  figures  for  1867 : 

[Tbe  qnftQtity  Is  glyen  ia  iMckiget  when  not  otherwise  ipeclfled.] 


<^ui  Uf.  Valne. 
Chint^OIan  k  S'rtbnware 

Bottici $sd,im 

Chiu  .„Aifias  vtiKm 

&rtbV*e.5Q.T37 1.820,849 
GItM  .861.998  8*. ,7(18 
Otft»wa*t*S4.  04  840,8ra 
GU9fplate.7,18T  M7.S06 
fitoaeweie 17,565 


BnMi 

AedB 1,101 

Acetate  oi 

Ubm 8,S» 

Alkali e,78t 

▲ipkaltiiai  .488 
AldBmea...  48 
Aliurlae.        IS 

JUOM SSt 

Aim   ....S.tiS4 

Alan  e«ke..  458 

AranooU  •ii]4iS 

**      cerbOUt 

**      miiri'e4 

**       eel.  11* 

Alail«Btal..S7S 

An^ttto  ..A809 

Aniline,  cnidetO 

"      nr.*el6t 

**      oil    ..bl 

'•      powd.l 

**    ebk>-nto0 

**      eol'e485 

"      djre..l 

ABtinoDj...iOO 

Aniiecd....  S7S 

Afsee^te    tollii- 

diae 80 

Aain-s  1 

Anov  roolt,96t 
Attafotfda..ll9 
Aneaie   ..i«81S 

Algol* 2,W 

Bttiaa  tola  Si 
.  *•      Peru  .  6 

Bartered IS 

lluk,  FBruTUn. 

^      nitph.18 
"      cm:».495 

SUmnUi SS 

^  *  «ib»ti*e  i 
nea  po«d»J,4^ 
Blwg^ih  89 
BoeieorilmeflS 

Bonz 85 

BeaVofcoenalS 
Bttrgfody  phrh 

Bache:c«T  s.7S 
Brimstone, 
(tent) .  .lO^ils 
Castor  oU  5%l 
C«)am«  rooLll 

Cdom^l TO 

*amphor  9^947 
Ckaai*mile  .10 
^**  flowenSSfi 
CtBtbarldes..Si 
.lU 


996,888 

5M85 

117,«^itt 

8,188 

7«8'5 

7,668 

16,810 

1S.674 

10,<«7 

9,«» 

49,417 

994 

9.148 

S.«8 

83  714 

664 

10,415 

1,«» 

«19 

871 

87,^6 

881 

6,'»4 

8,655 

1399 
9t9 

14,896 

5,060 

19,»88 

SU8.9« 

1,139 

510 

619 

8,068 

110 

9,184 

93,546 

95S 

481,709 

9.145 

7<JS 


84^ 

894 

1,698 

969.168 

446 
9,510 

eu,fn8 

141 

&S54 


QaantltT. 

Oinaine 66 

"   otlodlgoO 
Ch1on>d7ne.  .17 

Cualk 

Cobalt SI 

Colcotbar  ...  85 
Colocynth..  981 

Creosote <7 

Cream  tar. 1,733 
Crysral  tartar.  10 
Cbloory  ..  6.066 
Ofdomoo  ro*t8 14 
Cocblneal.U},161 

Casionon 4 

Cabebi 100 

Cudbear....  849 
Catch  ...  .9,478 
DWidlTl  ..1,177 
Dnnglog  BaliB67 
l>Mf  oa*8  Moods 

Brgoi 41 

B«K  albiiinett.60 

Esparto 95; 

Knrot  of  rje    .9 
Ext.  of  mad*e'i4 
Sxt.ofi*dlK(i9Sl 
Ext  of  fbetic79 
Ext.  of  dTcw*d.4 
Floor  SQipharSO 
Oeatlan  root  991 
Gelatine.....  . 

Gambler.  90,949 
Gamboge  ..  167 
bamAi*blc8  4^7 
amber...  9 
erode... 605 
benaone.lO 
anine  .86 
beDj4min49 
copaiYl.866 
cam*r  1.8h8 
"  kowr  019865 
gCNlda.l,80j 
gnl^camlU9 
copid  .9,088 
mastie  ...9 

keno 9 

talc. ...875 
mmh  .118 
aUbain'h«4 
mogadore  6 
trjga*m  160 
Senegal. 144 
se3ari...lO 
sen*kiml50 
anbsUt'teSS 

ton 65 

SAhdrac  .9j 
8eamm*ov4 

Glae 8,8-W 

Glycerine  1,8(10 
Gypsum  ....^74 
Iceland  mosn.  10 

Indigo 4,667 

Iodine &S 

lodiuer,  9*n\>.  .7 
lodido,  pot.  807 

Ipecac  58 

Ipecacnanha  .00 
loaoct  powdr93S 


tt 


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Valne. 

17,7« 

838 

l,9i7 

10,069 

8,848 

480 

8,640 

589 

818.649 

9,9a 

19(i,548 

1,698 

819,998 

lis 

690 

85,688 

60,971 

1,6  «1 

8,867 

58S 

4,059 

8,60^ 

665 

6«n 

8,947 

S0,066 

889 

480 

957 

1,958 

83,011 

158,719 

10,767 

49,886 

1,185 

97.171 

994 

8.849 

9,488 

98,065 

4i,546 

^69  184 

53,848 

1,444 

79,080 

1,48s 

185 

89,795 

8,565 

899 

400 

19,586 

5,7i5 

865 

10,6^6 

4.5% 

9,906 

1,978 

710 

838,994 

96,375 

7,148 

104 

814,596 

68,917 

1,8.M) 

56.411 

8.9&1 

9,4H4 

9,068 


Quantity.  Value. 

ItlovafS 14  5.090 

J^Iap 145  15,4Sa 

Lardy''S....870  88,946 

Lanrvi  leaves. 60  84i 

Lacsnlph 5  908 

Leeches 896  7,994 

Lic*rioer*tl4,463  49,0? 

,"     tastel6,89i  445,068 

Locust  b«*s9,150  9.09e 

Ifgwood  ext  70  l,79g 
Madder.. .18,999  8,480,144 

l!agDesia....7a3  19,105 

Jlagne«la,esrb5i  768 

Xnnna 47  l,78i 

Nitrate  lead.661  14,80: 

Ni  tro  bensole  10  l,04i 

>ntgalU         91  5,006 

liux  vomlesl518  4,07s 

Oils  nn  pec.457  19,06o 

"   anise.... 41  4,Mi 

anls'^ed  .1»1  16,^ 

almonds  .85  5,89t 

cod....  1,754  58,8;9 

berg*m*t6S5  190.86? 

C«ssla..l84  18,904 

cocoanut6d5  »tiOQ 

cajlpot    .18  48o 

cubeb4....9  tOi 

citron 7  l,18o 

cioTe8....8  96t 

clironeIla>297  11,01t 

craton    .11  766 

ftiAlU 5  4l6 

flAh 5  148 

corn 88  9,888 

Ciirraw*yid3«  4,96o 

Haarlem.b99  9,914 

Juniper  ..15  70i 

Seranittm  91  9,885 

LYonder  ;k04  14,419 

laurel  ....46  5,04i 

lemon.  1,014  69.69b 

lemon  giSiS  1,408 

neroby....9  «     7O9 

oriinge..l58  5,888 

frigiinrm76  8,867 

ne*tslooti40  897 

essentia]  670  97,168 

Lin8Ml,l86  ll>«,78:i 

UiTe.4i.065  816,861 

Palm  .  .980  68,99s 

PoppysNill  619 

Poringal  .10  400 

Rosemary  14  490 

Natmeg...8  888 

lihodiom..8  585 

Sesame..  09  9,808 

Bapeeeed^S  9,611 

dindalm  e.8  885 

SandalwMS  681 

Whale    888  98,i9s 

Heal 80  9,106 

Hperm..815  985,115 

Rose 8  6,689 

K*dThyme71     8,091 

Wormw*d.l  988 

Opium.....  1,1 18  690,149 

OrchU'a  W*d747  19,014 

M    Uqnor.  46  8,861 

Orrif  root....l9  874 


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114 

Qtuntlty.  Tilae. 

OHdt  Cobalt.  IS  S,0» 

*■  ztiic,.s,Ma  1I.WI 

PllBM flTl.TBI 

Pull  Whitol  ,138  S.418 

P«r.  UarrlM.lO)  T,WM 

Pitch MB 

Fotuh  DRRDl'eS  BiT 

■-     bIc.l.Ul  eG,DU 


Pbitpbonia  D91 
rinmbuo.S.BK    ! 

Pnlw « 

QainlB*       .140 


ntJohn'ibrlsa 


lUPORTS   or  HBROBiLRDin. 

Qnuntr.  Tilne. 

Camii^'.'.'.'.. '.'.'.  nstSI 

DrlBdfriltB....  t«,DD3 

DatBB M.VO 

Fid  W.STS 

Lemona t«,t10 

Lentlli 18,0711 

Mnt SW.lSl 

OnoEea STI.IM 

Pe*i ...  s.sai 

pTM'vid  eliiinr  14,801 

Plneappln lOI.SBl 

PlBID* 80,110 

Prnm-i _.,.  014.040 

..l.G«>,t4« 

_      .  »S3 

SucM  *  prat..  tOI.Be4 

Qnpsa I3,4M 

Olhar m 

Cfanalcal  ...»  1.SM 

Hathematicil  BO  I4,E8T 

l[iuleal.,..a,lM  1B8.06S 

"-"•-'            ■  UTO 


[February, 


Baig....        BTB  a.lSO 

Bei.llu  pd'B  .T  OR 

8ar(ap'llal,Ha  B7.:i8 

HcuiinioiD....3  1,800 

Basna t»  11,10> 

SnulU in  1,007 

Bhellac....4^an  1*4,1  IS 

So<)i.ar<oiute]>  (Rt 

"    blurll9.448  t80,aT) 

"    BlllieaM..lB  880 

"    ul...40,S8S  l-tB,m 

"    ciaB..U,lM  t».BM 
u1l...SI,BSSL0K.I0S 

|>    hjpChaDlma  i^U 

*>    byjcriiLIM  I.1U 

"    DllnMsni  808.188 

SponnB.-.l.BM  05.068 

fqalU* IM  «»t 


OVHl 
1.881) 
I1.1K 


oo.tjoi 


...an 


tbiLsopilal.n  0,145 
KnKKsal....  10  1.111 
Tclisraphlc...!       1,871 

jBWa'^...fiOT  1,008,107 
Watchaa  .1,' 83 1,904 J11 
Leathar,  Htdaa,  Ac— 

Bladdsn 44l 

BaoMAih  walls  17,000 
BrUtIn  .1.181  401.874 
mAaa,dia'd«,lH4,0M,41T 
Bldea.  iuidna*ed1,ini,Ka 

Bonu 0.000 

Lsattwr,  pat .  .08  4«.aK 
KlaariaalhuTIB  UUm 
Llqoon,  Ac— 

Ala 11,118    118.071 

Aromatic  blttOO       3,706 

— -'-       --TO   4Bl,[nl 

IB     60,740 

It      11.09S 


BrouM  ....840    lSS,fllT 


OullinreB..SI  0,811 

GaoB l.fil  141.801 

Hirdwara  0,001  S37.I7S 
IroD,  honpftoDi) 

1.BM  111,840 
Iron,  pis  (Iddb) 

JKtlL  (OI.IDI 


•tfton) 

M,aosi 


tad.  pig41T.KVt.nO.llB 
Hetd  K-da.T,'tt  7>Mn 

Halla 4S4     10,MI 

N««)1es 000   88.118 

Nickal xa   10T.101 

OMmaUd 1B4.M* 

Plated  irara.m     01,<» 

Plalna BO     >:,«( 

PercaB.capaTOO     88.881 
Saddlery .     .n*     rs,BaO 

8M  Fi . . . .  ooa.ne  a,KMO0 

S~  «ltcr7.aS8,b»7  00,140 

lTanran...6l  18,018 

Wlnr S  M8 

Tla  plate.  biB, 

BH.tU3B,l«0^in 
"    alabi.l)M. 

4,BU<I0a  80,010 

Win....  i4.in  141,101 

ZiDC. . .8,011.001    131.Stl 

5«snr «»,on 

CLnnamoll 8S.ni 

Clotaa 1],IM 

GlDgel M.OH 

Maco KOU 

HD-lard. 81,010 

Mntmi^ 10B,WJ 

Pep>.er 104,118 

Pliento »^8I8 

Olhaia ..  BIB 

BtatVoDcrr,  Ac— 

Book* B,K»1,1ll.m 

BnnittlllKB..7U  Igl.m 

Paiwr 8.BS7  OIO.'BB 

OibariU'y.l,4BB  HO,m 

Aab Ml 

BambM no 

Boiwood   ,.  „  a^lK 

Baaawwdv....  ijn 

Camwood...'."'.  »,'*■ 

Cedar BUM 

(■■rk l«4En 

DrewDoda OJSt 

Bborj e.m 

Faille     .  S,SM  lB),»n 

Llmawood 11,141 

LI  nimiTllB     ..  18,m 

Logwood  40,001  M141I 

MahoiaiiT IIMK 

BiMn tajgl 

Sapaovood  ...  10,0B 

BtilBw.  Dd.  ...  I,OM 

Bedwood H,HS 

Haodal    0,014 

Wlllaw isjao 

PaiBlaaf 1,1U 

oihT .  110,00) 

XUMlTaBMua-  ^ 

AlBba-frotnOm  M.1H 

ADlmali Ot,nl 

BaakaU...1,4Kf  I80.IH 

Baff) ni.llt 

B«adB 1,811  SK.m> 

Beana 11.401 

BoiiedDiL 0.4H 

Boiet 4is,Na 

Blacking S.W 

Brleka 0.«S> 

Battna.. .0,811 1,100411 

Batldlng  flona.  14,l>n 

FollihlDg  BtonB.  I,cns 

BoiT  lEoae K.DH 

Caxdh).. IS  0.411 

rarrlagea...  81  nm 

Car 4».«« 

UbaCH... .0,111  mjatt 


1869] 

Qnintfty.  Vilve. 

CIgtrs 676,190 

GoaI,Uni9S8,9U    9-9^96 

Corks K7,a71 

Confeetkmetreo  6,084 
Oottoo,bls.  1,645  118,691 
Uoekf.  ..J,«^  18\098 
r«c<»,bgal9,509  316,038 
Coffee,  b  ff(L 

1448.418  t5,0t5,97« 

Enerj S,6«8     86,604 

Kgga 6,176 

Fanej  goods. . .  1,468,S40 

Fan* 106,1-16 

Feathen  174.980 

FbeenckCTB...      86,486 

Fish 646,460 

Fax 1,844    884,&T0 

FUoto 641 

Foar SOO       6,888 

FamitBr«...1l0J     67.104 

Qnin 981,198 

eriadftooea....  99,491 
GoAoycloUi, 

12,631  918,606 
Ommd  flint,  m  1,859 
GflttAPeichtllS      0,914 

Ooaco 10,618 

Hair 7,r6    9.18,897 

Haircloth  ..849  166,918 
Heap.. .iai,19ai  9,739,^66 

Hooey 9.711      9,899 

Hoii  ...  7,968  690.089 
m.  nb*r  81,986 1,909,691 


TBS  WATER  POWER  OF  XAXKB. 


Q]iantt«T.  Value. 

lYOry 8,149  900,867 

Jate 9»,849  981489 

''    bntts.  .6,^.91  16,669 

**    cattfn;{l,485  4,466 

Lith.  etoiieii..S6  14,017 

]iachiner7.6.103  887,877 

Marble  A  mf...  J08,694 

lUlt.......8408  £0,164 

matches  ...    34  1,900 

Xi)carroiii95,t68  44,t90 
Moia  8eaY^5,117 5,090,486 

OIJ  Palui'B.1,085  499,0^9 

Oakam 800  1,9-9 

Ottmeftl v,851 

Onion' 59  418 

Paper  hand's  867  67,819 

Pe  ri  barley.  40  968 

P  arl  shelia....  94,1  TB 

Perfomery  .9,690  957,098 

Plaster 86  69,U7 

PlAssara 706  l,i61 

Pipe;) 976,869 

Potatoes      ....  99,tr)9 

Piimle  stone..  96S 

Prov  slons 98,0b9 

Ra^s  ....54,8»91,40i,610 

Rice 886.477 

Rope 989,788 

Bago I,f83  10,881 

eagofl  nr..6,715  91,837 

Bait 492,949 

Peeds.  tinsp....  916  068 

Castor  seed8,016  88,157 


115 

Quantity  Value. 
Conanaer  i-ecd  sbM 

Carraway  s'dS  0     20,988 

Canary 4,400 

LlDseed  .585,4979,869,035 

Bearoot 8         4^ 

Boap 64,649    177,747 

Stataary 141. 99S 

gbella 40,149 

Slate  roofli^.. .  1,904 
Soe^r,  hhd«  and 

Dola    8!<1,04 1  91168,886 
Bngar,  bzfl.aod 

bags  ..608,0146,097,850 

Tar 49         889 

Tapioca... 9,769  91,69S 
Trees  A  plan's..     7  ,487 

Tea 765.056 10.887,765 

Twine 166     17,«il 

Toys  ..9,8e7  496,91S 
Tobacco.  .64,69i  1,694,401 
Turtle  shell...  Kti4 
Tomatoes  96,888 

Waste 1,440     60,86 

^hlsK 6  809 

Wha  ebone 99,099 

Wax 9,055 

Woo],  bales, 

_  9cj,988 1,054,687 

Wood 9,986 

Other  mlsceL...     89,481 

Grand  tot&l..  $168,909,611 


m0^m^0^0^0^0^^90*0»^*0f 


THE  WATER  FOVER  OF  HAINE. 

BT  WALTER  WELL8,  BUPT.  HTDROORAPHIO  SURVEY  OF  MAIVB. 

Maine  does  not  lack  for  lumber,  granite  or  ice,  but  ber  strength  and 
gloiy  are  ber  Water  Power. 
Look  at  tbe  facts  of  tbe  case : 


WATER  POWER  MATERIAL. 

31,500  square  ^iles  of  territory  planted  by  tbe  sea,  witb  an  exposure 
maritime  on  tbe  east,  and  purely  oceanic  on  tbe  soulb  ;  located  in  the 
ruD  draft  from  the  Gulf  of  Mexico — tbe  vast  steaming  caldron — at  the 
same  time,  at  tbe  northeast  angle  of  tbe  continent,  and  so  swept  by  rain* 
oondensiog  winds  from  off  tbe  cold  ocean  current  on  this  part  of  tbe  con- 
tinental frontier;  and  further,  with  every  east  and  southeast  wind, 
bathed  in  the  vapors  of  Newfoundland,  originating  in  that  great  tropical 
torrent,  the  Gulf  Stream. 

Hence  tbe  annual  rain  of  Maine  sums  42  inches  in  depth,  over  three 
triUioQ  cubic  feet  in  mass,  and  of  this  at  least  35  per  cent  is  poured  back 
into  the  ocean  through  the  rivers,  or  considerably  over  a  million  million 
cubic  feet, — the  annual  sum  of  Maine's  water  power  material. 

The  Ohio  carries  off  only  24  per  cent  of  the  41  inches  yearly  de- 
posited in  its  basin,  tbe  Mississippi  only  25  per  cent  of  its  30  inches,  the 
Upper  Mississippi  (above  St.  Louis)  24  per  cent  of  35  inches,  the  Miasou^ 


15  per  cent  of  21  inches,  the  Arkansas  15  per  cent  of  20  inches,  the  Bed 
River  20  per  cent  of  39  inches — not  one  of  them  receiving  so  mueh 
downfall  as  Maine,  or  disbursing  anything  like  a  proportionate  river  dis- 
charge. 

HOW  VAR  IT  FALLS. 

Water-power  is  water  plus  gravitation.  To  give  out  power  water  must 
fall ;  the  greater  the  fall  the  greater  the  power.    Now  look  at  Maine. 

Where  is  the  White  Mountain  Highlands  f  In  New  Hampshire  f  Not 
at  all.  It  is  in  Maine.  The  White  Mountain  ''peaks"  are  in  New  Hamp- 
shire; but  they  are  simply  a  terminal  focus,  a  ganglion  of  mountain  ele- 
▼ations.  But  the  huge  bulk  of  uplanc's  upreared  upon  the  shoulders  of 
these  granite  Titans^  discloses  its  mass  to  the  northeastward  in  and  across 
Maine. 

Hence  the  lakes  that  serve  as  the  fountains  and  feeders  of  the  rive's  of 
Maine  are  upheld  at  an  altitude  really  astonishing  in  view  of  their  prox- 
imity to  the  ocean.  The  Umbagog  lakes,  from  1,800  to  1,600  feet  above 
iide;  that  inland  sea,  Moosehead,  1,028  feet;  Chamberlain  Lake,  936 
feet;  Pomgocwahem,  914;  Wood  and  Attean  Lakes,  1,094  and  1,142 
feet  respectively,  and  so  forth  for  scores  and  hundreds. 

Thus  held,  their  waters  are  immense  repositories  of  power.  Conceive 
a  stream  of  water,  suitably  confined,  falling  plumb  1,200  feet  I  What  a 
blow  it  would  strike  I  Conceive  the  whole  surface  of  Maine  flattened  to 
a  plane,  the  sides  perpendicular,  and  then  conceive  the  1,000,000+1,000,- 
000 cubic  feet  of  water  pouring  from  the  brink  650  feet  into  the  ocean! 
Snob  is  the  gross  power  of  the  moving  waters  of  this  State — 2,625,000 
horse-power — a  power  that  operates  day  and  night  withoat  cessation  from 
one  centary^s  end  to  the  other,  a  power  equal  to  the  working  force  of 
well*nigh  five  million  ordinary  horses  laboring  for  the  whole  twenty-four 
hours,  or  the  force  of  thirty  million  able-bodied  men,  likewise  working 
without  intermission. 

This  stupendous  power— of  which,  at  least,  1,000,000  horse  power  can 
be  made  available — burns  up  no  fuel,  eats  no  hay  or  oats,  no  flour  or 
me^  1^^  all  it  asks  for  is  wooden  overshot  wheels  or  iron  turbines,  and 
^•fjLgf fireworkers  to  guide  its  mighty  energies  to  economical  results. 

KATURAL  STORAOS  BASINS. 

^'^¥ne'j()owtir  in  Question  is  furnished  with  natural  reservoiis  of  such  im- 
rn^bsd  c^paiQidy 'l^  can  be  controlled,  made  constant  against  both 

diWiWWdf  ^Jf^dstieV,  and'  so  equal  to  the  demands  of  the  most  extensive 
manufacturfn'g.^  Sixteen  haiidred  and  fif  y  lakes  within  the  boundaries 
6f  the  river  l)a8ii\s,.  and  twenty- <ui;  hundred  square  miles  of  locuatrine 
tflirfa^ei,  n^t^'couiltiiig  in  llhe  iiuiidr^ds  p{  minor  ponds  and  pools,  of  which 


iuvtit'y^ 


1869]  TBX  WATVR  FOWXB  OF  HAISE.  llT 

Upon  these  lakes  an  average  depth  of  eight  feet  of  storage  can  be  held 
bj  dims,  as  is  demonstrated  by  the  facts  collected  in  the  Hydraulic  Sar- 
vey  of  the  State,  in  charge  of  the  writer.  Hence  the  rivers  can  be  made 
to  operate  with  full  power  even  through  the  severest  drouths.  Think  ct 
eight  feet  of  storage  on  a  lake  120  eqnare  miles  in  surface,  at  the  head  of 
s  river  that  falls  1,023  feet  to  the  tide,  as  the  Kennebec ;  or  of  ^7  square 
miles  with  11  feet  of  storage,  at  the  head  of  a  river  that  falls  1,250  feet 
to  the  tide,  as  the  Androscoggin.  Even  the  little  Union  river  that 
drains  not  over  650  square  miles,  commands  already  seven  feet  of  storage 
on  thirty-five  square  miles  of  lakes,  and  can  have  several  feet  more.  The 
St.  Croix,  though  draining  not  over  1,175  square  miles,  has  reservoirs 
not  inferior  to  those  of  the  Merrimac  draining  5,000  square  miles.  In 
£iet,  the  Kennebec  has  more  lakes  connected  with  it  than  the  Oronoco, 
and  the  Penobscot  more  than  the  gigantic  Amazon  or  than  all  the  riven 
in  Africa  so  far  as  known. 

These  great  natural  reservoirs  give  the  water-power  of  Maine  a  vast  ad* 
vantage  over  the  power  in  any  other  part  of  the  United  States,  as  Vii^ 
ginia,  the  Carolines,  Georgia,  etc.  Minnesota  ha^  immense  lake  sarfaceSi 
and  lakes  held  far  above  the  sea.  But  the  fall  from  lake  to  sea  is  not  ao- 
complished  in  her  borders,  nor,  indeed,  short  of  thousands  of  miles  of 
horizontal  run,  and  of  course  is  not  mostly  available  for  power. 

Unquestionably,  the  use  of  these  grand  reservoirs  will  add  one  hundred 
and  fifty  to  two  hundred  per  cent  to  the  natural  low-run  power  of  the 
rivers  of  Maine. 

OOOL    OLIMATB. 

The  climate  of  Maine  is  singularly  exempt  from  oppressive  heat  of  more 
than  a  day  or  two's  continuance.  By  consequen  3e,  workers  in  mills  and 
lactories  can  accomplish  more  than  in  the  more  southern  and  interior 
di&tricts  of  the  country.  The  fraction  of  excess  is  set  by  manufacturers 
of  large  exp(  rience  at  fully  ten  per  cent  It  cannot  be  otherwise,  while 
in  the  interior  and  further  south  the  artisan  labors  for  months  in  a  heat 
that  enervates  him,  in  Maine  net  over  ten  days  in  the  whole  summer  can 
be  called  hot ;  and  for  much  the  greater  part  of  the  time  cool  sea  winds, 
ill  the  way  from  southwest  through  south  and  east  to  northeast,  make 
work  a  pleasure  rather  than  a  burden. 

This  low  temperature  is  attended  with  far  less  waste  of  the  streama 
than  is  experienced  at  the  hot  season  of  the  year  in  other  parts  of  the 
conntry,  and  hence  the  low  mn  of  the  rivers  in  Maine  is  naturally  nnu* 
snally  large.  During  August,  when  evaporation  is  elFOwhere  conducted 
most  rigorously,  in  this  State  it  is  reduced  to  almost  nil  by  the  cool  fogs 
bifofe  noUced,  which  are  regarded  a  most  agreeable  feature  of  the  cli- 


118  THx  WATSR  POWER  OF  KAZHX.  [Fehrwuy, 

mate,  bringing  refreslimcfnt  to  man  and  beast,  and  clothing  vegetation 
with  most  luxuriant  greenness. 

The  low  temperature  in  question  bas  tbe  further  effect  of  retarding  the 
melting  of  snow  in  spring,  and  hence  tbe  prodigious  freshets  that,  further 
down  the  Atlantic  slope,  as  in  Pen nsjlrania,  Virginia,  Tennessee,  etc^ 
spread  wide  havoc  and  greatly  iippair  the  value  of  water-power,  are  un> 
known  in  Maine.  The  dense  evergreen  woods  that  cover  from  15,000  to 
20,000  square  miles  of  the  State  surface,  coupled  with  the  cold  sea  wind?, 
delay  tbe  melting  of  the  snow  and  ice  in  the  woods  until  late  in  May, 
and  hence  the  mean  rise  on  the  lower  sections  of  the  larger  rivers  is  from 
six  to  ten  feet  only,  instead  of  ten  to  twenty,  as  further  south. 

t7NIF0RM  DISTRIBUTION  OF  RAIN. 

In  Minnesota  the  rainfall  of  one  quarter  of  the  year  exceeds  that  of 
another  fivefold,  in  Wisconsin  three  to  fourfold,  in  Oregon  elevenfold,  at 
San  Francisco  over  a  hundredfold ;  whereas  in  Maine  the  receipt  of 
moi*<ture  is  almost  the  same  for  each  quarter,  or  ten  and  f  half  inches  each 
three  months.  In  such  a  State  the  streams  never  can  run  extremely  low. 
In  such  a  State  only  can  extensive  manufacturing  by  water  power  be 
judiciously  undertaken,  vrhere  large  cnpital  is  to  be  invested,  numerom 
bands  employed,  and  where  the  intermission  of  a  few  days  from  dearth  of 
water  would  prove  ruinous.  In  such  a  State,  as  the  streams  never  run 
very  low,  so  neither  do  they  ever  run  excessively  high,  flooded  by  tht 
torrents  of  periodical  rains.  In  such  a  State  accordingly  the  mills  can 
be  placed  on  low  levels  to  use  and  enjoy  the  full  bead  of  the  falls,  without 
the  risk  of  being  carried  off  or  swamped  by  inundations. 

MILL  PRIVILXQES. 

In  the  portion  of  the  State  thus  far  explored  in  the  hydraulic  survey, 
about  8,000  mill  privileges  have  been  found,  some  just  large  enough  to 
run  spool  machines,  last  machines,  a  shingle  saw,  and  some  large  enough, 
upon  improvement  of  reservoirs,  to  run  twice  the  machinery  of  Lowelli 
or  Lawrence,  or  Fall  River.  These  privileges  will  foot  up,  when  devel- 
oped, at  the  lowest  estimate,  600,000  horse  power,  four  times  the  power 
employed  in  Great  Britain,  in  1850,  in  cotton,  woolen,  silk,  flax  aod 
worsted  manufacture ;  a  power  the  preparatory  equipment  of  which,  n 
operated  by  steam,  would  cost  not  less  than  t00,000,000,  and  the  annual 
cost  of  which  for  fuel,  etc.,  at  ordinary  New  England  rates  for  steam 
power,  would  be  at  least  t40,000,000. 

The  proportion  of  this  power  yet  put  to  use  is  utterly  insignificant 
t^orty  thousand  horse  power  on  tbe  Penobscot,  in  the  twelve  miles  above 
iBangor,  run    only  a  few    though   giant    saw*mills;   the  **  Piscataqai* 


1868]  THB  WATXR  POWIB  OV  KAINX.  119 

fiips,"  on  the  same  river,  with  at  least  8,000  horse-powers,  operate  noth- 
ing at  all;  likewise  the  "  Rumford  Falls,"  oa  the  Androscoggin,  163  feet 
hll  and  20,000  horse-power,  the  river  bottom  and  banks  and  the  adjacent 
land  perfectly  adapted  to  improvement;  "Livermore  Falls,"  "Lisbon 
Falls,^  and  the  '*  Pejepscot  Falls,"  on  the  same  river,  each  summing  from 
6,000  to  8,000  horsepower;  also  the  '*Ticonic Falls,"  on  the  KennebeCi 
8,000  horse-power.  The  "Madison-Bridge  Falls,"  •* Norridgework 
Falls,"  ^ Carstunk  Fslls "  5,000  to  7,000  horsepower  each — single  cases 
oQt  of  dozens — operate  either  nothing  at  all,  or  next  to  nothing,  as  com- 
pared with  their  full  capacity. 

Gircomstances  have  been  all  the  way  along  against  Maine.  The 
** Northeastern  Boundary"  controversy  for  years  discouraged  imroigra- 
tioo  and  kept  matters  in  a  turmoil.  The  political  party  that  formerly  for 
80  loDg  a  period  held  the  ascendant  in  the  State,  opposed  with  blind 
fiitttity  the  combiuationa  of  capital  by  which  alone  power  of  such  magni- 
tude coald  be  improved ;  and  lastly  the  State  neglected  to  ascertain  her 
resources  of  power  and  make  them  known — known  to  the  bene6t  of  the 
whole  conntry  as  well  as  of  herself.  Hence  the  powers  are  not  improved^ 
sod  their  owners  have  not  the  means  for  their  improvement.  For  this 
reason  property  of  this  sort  is  to  be  had  in  Maine  at  prices  merely  nomi- 
nal Some  proprietors  stand  ready  to  give  outright  privileges  first  class 
ia  all  respects  to  responsible  partiea  who  will  improve  them. 

The  policy  of  the  State  is  now  to  the  last  degree  favorable  to  manu- 
facturers. Towns  are  permitted  to  exempt  from  taxation  for  a  period  of 
tea  years  all  manufacturing  capital  invested  therein,  and  the  towns 
themselves  are  ready  and  anxious  to  do  this,  and  have  already  done  it  or 
voted  to  do  it,  in  many  caaes.  The  State  statutes  are  most  favorable  in 
the  matter  of  flowage,  every  advantage  being  placed  in  the  hands  of  the 
manufacturer.  The  people  of  the  State  generally  are  anxious  to  have  its 
vast  resources  of  power  pnt  to  use,  and  stand  ready  to  co-operate  to  the 
fall  measure  of  their  ability. 

AC0E8SIBTLITT. 

It  is  not  to  be  left  out  of  sight  that  the  water-power  of  Maine,  in  point 
of  access  to  the  world  at  large,  and  the  great  trading  centres  of  this 
coQQtry  in  particular,  is  most  favorably  located.  The  great  steamship 
route  across  the  Atlantic  leads  close  along  the  coast  of  the  State,  and 
indeed,  already  makes  one  of  her  ports  an  important  point  of  access  and 
de{>arture.  Any  railway  across  the  Continent,  built  so  as  to  accommo- 
date traos-ConUnental  traffic,  must  pass  through  Maine.  On  the  Saco» 
river  20,000  horse-power  in  its  lower  section^  on  the  Androscoggin 
80,000,  on  the  Kennebec  80,000,  on  the  Penobscot  60,000,  are  already 


120  A  WAT  OF  RBTURK  TO  SPIOIB  PATMSHTS.  fjFVdrtfOfyy 

bv  rail  withia  four  to  twelve  hours  of  Boston.  At  leatt  )5,000  horse- 
power  more  are  located  immediately  upon  navigable  waters,  so  that  ves- 
sels could  load  and  unload  direct  from  and  into  the  mills.  The  great 
tides  of  the  coast  of  Maine  keep  the  borders  clear  of  ice  to  a  remarkable 
extent,  and  coasting  steamers  could  thus,  or  do  now,  bring  these  prin- 
leges  within  fifteen  hours  of  Boston  and  thirty  of  New  York. 


t^f^k^^^r^f^m^*t^tm0^f^f^i^m^^^t^^0t^t^^0k^^ 


A  WAT  OP  KETDRN  TO  SPECIE  PATIENTS. 

A  pamphlet  was  published  in  New  York  some  months  since  bearing 
the  title  **  A  Plan  for  the  Gradual  Resumption  of  Specie  Paymenu."  It 
stated  that  the  views  it  presented  had  met  with  hearty  ^  approval  **  from 
*'  business  men  qualified  to  judge.**  And  this  gives  me  ground  for  notic- 
ing it  It  proposed  that  after  April  1st,  186S,  gold  shall  be  paid  for  legal 
tender  notes  at  the  rate  ^  one  dollar  in  gold  for  one  dollar  and  thirty- 
three  cents  in  said  notes :  **  after  July  the  rate  to  be  130,  and  so  decreas- 
ing until  January,  1874,  when  the  paper  would  be  at  par  with  gold.  All 
gold  coin  received  by  the  Treasury  to  be  retiuned — 1st,  for  payment  of 
interest  on  the  public  debt — 2nd,  to  redeem  the  greenbacks.  Some  other 
provisions  looked  to  exchanging  the  national  bank  notes  for  greenbacks 
and  to  the  disposal  of  the  redeemed  paper. 

A  bill  ofiPered  in  the  last  session  of  Congress  by  Mr.  Broomall,  of  Penn- 
sylvania, had,  in  part,  the  features  of  the  **  plan."  It  proposed  to  stop 
contraction  and  to  substitute  the  redemption  of  notes  when  presented  in 
sums  of  less  than  100,  at  140  per  dollar  of  gold  during  the  first  niontht 
189|-  during  the  second,  and  so  on  nntil  gold  and  notes  became  of  equal 
value,  which  would  be  in  six  years  and  eight  months.  Tbe  good  point 
in  both  these  plans  is  that  they  looked  to  an  early  resumption  of  specie 
payments.  This,  In  any  re^onable  way,  will  be  a  great  gain.  Simply 
establishing  a  price  for  gold  would  be  of  immense  value,  because  its  fluo- 
tuations  diffuse  uncertainty  through  all  branches  of  business.  To  be 
relieved  from  the  uncertainty  that  besets  even  the  immediate  future  now, 
•0  that  no  one  knows  what  an  hour  may  bring  forth — to  be  able  to  see 
what  gold  will  be  one  month,  six  months,  even  two  or  three  years  ahead 
— what  unspeakable  gain  I  What  prices  would  be  paid  for  such  knowl- 
edge now  I    What  fortunes  might  it  not  make  or  save  from  loss ! 

Of  the  two  modes,  Mr.Broomall's  seems  much  the  better.  The  decline 
Id  gold  should  be  as  uniform  as  possible,  and  tbe  variations  reduced  to  a 
minimum — for  this  would  beget  an  equally  gradual  change  in  prices  to 
conform  to  the  gold  standard.  The  slight  changes  in  value  would  also 
promote  uniformity  in  the  rate  at  which  paper  would  be  presented  for 


1869]  A   WAT  OF  BBTOBir  TO  BPSCIS  PATMKim.  121 

redeoiption — Tor  tbe  gain  from  holding  would  make  the  interest  only 
enoQgh  to  prevent  its  being  parted  with  un necessarily ,  yet  not  enough  to 
induce  hoarding  or  to  bring  it  into  competition  with  the  usual  gains  of 
money  or  profits  of  business. 

The  variations  in  the  gold  rate  being  so  small  would  offer  no  induce- 
ments to  speculation,  and  thus  one  of.  the  chief  disturbing  causes  in  the 
market  ^uld  be  removed.  Mr.  B.'s  rate  of  reduction  is  perfect  in  its 
way,  approaching  closely  the  equable  changes  that  follow  the  grander 
operations  of  tbe  laws  of  Nature.  The  time  it  would  require  would  not 
protract  unduly  the  ills  of  a  transition  state,  nor  enforce  changes  too 
rapid  to  be  safe:  they  would  be  so  minute  as  to  be  scarcely  perceptible 
from  day  to  day.  But  our  chief  concern  with  both  the  plans  lies  in  the 
objections  to  them. 

Tbe  first  is,  the  utter  uncertainty  in  which  the  Treasury  would  be  left 
IS  to  the  amounts  of  paper  against  which  it  must  provide  gold,  at  any 
onetime,  and  tbe  want  of  any  sufficient  provision  by  which  theTietsury 
is  to  be  supplied  with  gold  enough  to  meet  a  very  uncertain,  but  pes 
libly  very  great  demand.  Mr.  Brooroall  simply  says  :  ^  Less  than  $100 
most  be  presented  at  one  time.*'  The  New  York  plan  has  not  even  this 
limit;  it  only  requires  that  the  exchanges  shall  be  made  in  New  York. 
At  the  outset  will  5  or  10  or  ICO  or  more  millions  be  wanted^  Who 
can  tell  how  little  or  how  much  T  And  in  this  doubtful  case  a  maximum 
and  not  a  minimum  supply  of  gold  must  be  provided  before  the  Treasury 
doors  are  thrown  wide  open  to  all  comers.  For  the  Treasury  must  be 
pbced  in  the  position  of  a  bank  with  an  equal  circulation.  It  will  have  the 
Bame  responsib'lities,  and  be  exposed  to  the  same  risk&  In  fact  the  average 
demand  for  gold  of  such  an  Institution,  at  the  commencement  of  specie 
payments,  would  probably  be  largely  exceeded — a  ri:»k  to  guard  against 
vbieli  a  large  »^upply  of  gold  must  be  secured. 

When  the  Bank  of  England  resumed  specie  payments,  its  paper  was, 
in  n>and  numbers  96  millions  of  dollars — ^its  gold  over  68  millions — a 
proportion  of  t  to  1.  Its  common  averaj^e  U  one- third  of  gold  in  pro- 
portion to  its  notes — at  times  more  than  one-half.  Any  such  proportionate 
tnpply  for  us  would  take  some  millions  of  gold — and,  oertainly  not  much 
less  than  that  amount  should  be  held,  beyond  what  the  interest  on 
tbe  public  debt  calls  for.  How  is  this  to  be  obtained  except  by  hoarding 
the  gold  revenue  f  Strong  complaints  are  made  now  because  the  Trea- 
Mry  keiipa  so  much  gold  locked  up  in  its  vaults. 

Will  not  these  complaints  have  more  emphasis  as  gold  aocumnlatea  f 
If  we  eaoiiot  bear  the  abatraction  of  100  millions — how  are  we  to  endure 
that  of  SOOf  For  as  the  Treaaury  becomes  surfeited — the  community 
will  be  depleted  and  gold  becoming  scarcer  will  grow  dearer.    As  it 


123  ▲  WAT  OF  BRUBK  SO  8P10U  FATlUWTa.  [FAnUOJ^ 

rises — other  things  wiJl  follow  ia  its  wake.  Business  will  reyi?e— speea- 
latioD  become  more  active— the  general  prosperitj  will  seem  to  increase 
«— the  babble  rising  higher  and  higher  until  it  bursts — and  burst  it  must. 
For  all  tbis  will  go  on  in  the  face  of  preparations  for  resuming  specie 
payments.  The  doubtfulness  of  the  future  favors  the  gambler  and  oper- 
ations for  a  '^  rise,"  will  be  engineered,  even  in  Yiew  of  a  speedy  decline. 
But  the  first  day  of  changing  p^er  into  gold  would  bring  a  downfall  in 
prices  rapid  and  ruinous  in  proportion  to  the  Inflation,  and  we  should  find 
our  brief  prosperity  dearly  bought  by  aggravated  loss  and  depression. 

Adam  Smith  thought  that  a  bank  could  be  carried  on  as  specie  paying, 
with  gold  as  1  to  5  of  its  paper.  And  Mr.  Bioards  thought  gold  as  1  to 
8 — would  answer.  And  we  know  that  many  of  our  '*  Wild  Caf  ma- 
chines were  "  run"  with  a  much  smaller  proportion  than  that.  We  know 
also  what  has  so  often  been  the  merited  end  of  such  arrant  shams. 

But  our  Treasury  Bank  must  have  nothing  of  the  ^*  Wild  Gat**  in  its 
composition.  It  must  be  pre-eminently  safe — and,  like  Csssar's  wife, 
above  all  suspicion.  It  must,  as  absolutely  essential,  keep  an  ample  sup- 
ply of  gold  beyond  the  demands  for  interest  on  the  public  debt. 

For  doubts  of  the  prompt  payment  of  that,  would  be  ruinous  to  the 
National  credit,  at  home  and  abroad.  Bonds  would  decline,  and  forced 
back  on  the  home  market,  would  further  drain  away  our  gold — and  the 
end  would  be  renewed  suspension.  Bisks  that  might  ordinarily  be  ran 
by  a  bank  cannot  be  adventured  by  the  Treasury.  For  every  uneasy 
throb  would  vibrate  through  the  whole  community-— every  slur  upon  its 
credit  would  be  a  national  injury. 

We  have  now  a  sufiScient  reserve  kept  in  the  Treasury  to  inspire  con- 
fidence in  the  regular  payment  of  interest  on  the  Bonds.  But  let  us 
begin  to  pay  the  Greenbacks  in  gold — with  only  a  small  addition  to  that 
reserve-— and  what  could  be  more  absurdly  fatuous  f  How  long  would  it 
take,  with  nearly  400  millions  of  paper  afloat  to  draw  every  dollar  out  of 
the  Treasury  ?  We  say  most  emphatically  we  must  not  run  any  such 
risk.    The  Nation's  credit,  and  honor,  and  welfare  alike  forbid  it  I 

Let  us  not  count  on  the  forbearance  of  the  people  in  keeping  back  the 
paper  money — and  so  facilitatim^  the  work  of  government.  When  no 
man  can  tell  what  his  neighbor  will  do,  what  inducement  is  there  to  sac- 
rifice his  own  interest  or  convenience  when  it  may  only  profit  others 
without  helping  the  Government?  The  Public  Treasury  is  a  very  fine 
pigeon  to  pluck,  and  judging  by  the  common  readiness  to  engage  in  that 
operation,  we  should  look  for  little  self  sacrifice  in  its  behalf.  It  most 
expect  the  common  fate.  While  its  means  are  seen  to  be  ample  its  credit 
will  be  good — ^its  work  easily  done.  But  let  its  soundness  oome  in  qoes* 
tiottf  and  ita  credit  will  aufferi  and  its  gold  be  drained  in  the  oaual  iashion. 


1869]  ▲  WAT  07  BXTUBN  TO  8PXCIE  PATMVKTS.  123 

We  think  these  are  most  weighty  objections  to  the  Treasury  being  made 
to  fulfill  the  functions  of  a  common  bank.  It  should  bear  no  such  char- 
acter. In  resuming  specie  payments,  we  want,  so  far  as  the  government 
is  concerned — simply  to  enable  it  to  pay  its  now  dishonored  obligatioiis — 
to  do  that  speedily  and  rapidly,  leaving  to  other  more  appropriate  agen- 
cies the  task  of  supplying  and  regulating  the  monetary  concerns  of  the 
oommanity.  The  Public  Treasury  should  be  merely  the  depository  of 
the  public  monies,  and  the  payer  of  the  nation's  debts :  and  in  that 
capacity  it  should  be  able  to  show  to  the  whole  world,  that  at  any  and 
every  time  its  means  on  hand  are  ample  for  all  known  and  probable  de- 
mands. This  position  is  essential  to  full  and  entire  confidence  in  our 
ability  to  pay  every  debt  when  it  matures.  I^Tow,  the  banking  function, 
if  added  to  it,  instead  of  giving  strength  to  the  Treasury,  would  only  be 
so  element  of  weakness  and  uncertainty,  a  prolific  source  of  doubts  and 
fears ;  an  agency  ever  affected  by  the  changing  aspects  of  commercial 
life,  liable  to  be  abused  for  political  ends,  and  requiring  the  wisest  and 
most  steadfast  management  to  keep  it  unharmed,  amid  the  storms  and 
trials  of  monetary  crises  which  are  sure  to  arise  in  the  unknown  future. 

A  second  objection  to  the  plans  is  that  they  would  much  retard  the 
very  first  object  to  be  gained  by  specie  payment^  viz.,  the  difi*usion  of 
eoin  among  the  people  at  large  as  currency  instead  of  the  paper  trash 
BOW  in  use. 

It  is  mainly — ^indeed  almost  entirely — for  the  small  daily  trade  of  the 
community,  that  coin  is  required  as  a  safe  currency.  But  let  specie  pay- 
ment be  resumed  with  no  limitations  beyond  those  proposed,  and  what 
woold  result!  That  all  parties  needing  gold  for  foreign  account,  or  for 
home  transactions  of  any  magnitude,  would  be  among  the  first  to  avail 
themselves  of  the  change ;  and  they  would  offer  for  redemption  bills  of 
tbe  largest  denominations,  because  attended  with  the  least  trouble.  The 
small  bills  and  fractional  currency,  being  more  widely  scattered,  would 
come  in  slowly.  Thus,  while  the  large  bills  would  be  readily  absorbed, 
the  smallest  would  be  the  last  to  go  out  of  circulation,  exactly  the  ^reverse 
of  what  ought  to  occur. 

Another  objection  is  the  prevention  of  any  reduction  of  the  volume  of 
the  cariency.  The  New  York  "plan,"  •*  approved  by  business  men  qual- 
ified to  judge,"  even  proposes  to  increase  it,  and  would,  if  we  understand 
it,  per.iiit  the  present  amount  to  be  doubled  under  certain  circumstances. 
The  bill  of  Mr.  Morton,  of  Indiana,  recently  offered  in  Congress,  providing 
for  return  to  specie  payments,  differs  from  the  plans  already  noticed;  but 
isUaUe  to  the  great  objection  that  it  defers  specie  payments  for  two  years 
and  a  half,  and  requires  the  continued  withdrawal  of  gold  from  the  oom- 
manity until  enough  is  accumulated  to  resume  payments  in  full,  and  it 


124  A  WAT  OV  BSTDBK  TO  8PK0R  PATMCHTg.  [FehnUUy^ 

subjects  tbe  Trensury  to  tbe  anomaly  of  a  bankiog  function  witb  all  the 
risks  and  uncertainties  thereto  attaching.  Mr.  Morton  also  objects  to 
legalizing  coin  contracta^-a  roeasDre,  which  we  think,  could  do  no  possible 
harm,  because  the  matter  would  be  one  entirely  of  individual  choice — 
while  so  far  as  the  practice  was  adopted,  it  would  be  resuming  specie 
payments.  In  my  judgment,  contraction  of  the  currency  is  essential  to 
permanent  improvement  in  our  finanoial  affairs.  We  have  more  money 
to  do  our  business  with  than  any  other  people  in  the  world,  using  the 
word  money  to  denote  all  that  passes  by  courtesy  under  that  name  or  is 
allowed  by  Jaw  to  assume  its  lunction,  in  addition  to  the  gold  and  silver 
in  the  Treasury  and  in  circulation,  and  held  in  private  hands.  We  have 
more  than  France.  And  while  hers  is  almost  all  specie,  four-fifths  at 
least  of  ours  is  almost  wholly  paper,  the  most  mobile  and  active  of  all 
currencies.  We  have  about  twice  as  much  as  England,  and  yet  she  has 
about  three  times  the  amount  of  our  foreign  commerce,  and  more  than 
twice  our  wealth — 86  thousand  millions  to  our  16.  And  over  11  thous- 
and millions  of  our  total  are  to  be  credited  to  real  estate,  the  least  mobile 
of  all  forms  of  wealth  and  demanding  the  least  currency  to  represent  it ; 
while  England  has  about  $6  50  of  paper  money  per  capita  of  popula- 
tion, and  France  95  50,  we  have  about  $1  20.  We  have  ten  times  as 
much  money  as  explained  above  per  head  now  as  we  had  in  1790,  and 
three  times  as  much  as  we  ever  had  previous  to  1850.  Not  merely  three 
times  as  much  money,  but  three  tiroes  as  much  per  head  of  tbe  whole 
population.  No  currency  in  the  world  shows  such  excessive  and  con* 
tinned  increase.  Were  it  a  genuine  measure  of  our  added  wealth,  we 
might  well  rejoice ;  but  it  U  now  a  mere  evidence  of  debt,  and  might  well 
be  taken  rather  as  a  sign  of  poverty  than  of  riches. 

In  the  decade  from  1850  to  1860  we  had  experienced  the  full  effects  of 
California  gold  in  raising  prices  and  augmenting  the  currency.  We  bad 
increased  our  paper  circulation  52  millions  and  the  gold  in  tbe 
banks  95^  millions — the  two  items  rising  from  203^  to  2001 
millions,  an  increase  approacbini^  50  per  cent.  In  addition  to  this  was 
the  specie  held  outside  tbe  banks  not  far  from  1 75  millions,  the  total  of 
specie  being  estimated  in  the  Finance  Report  for  1861  at  *J75  niillions. 
This  certainly  gave  us  an  ample  currency  sufficient  for  our  wants 
for  years  to  come.  And  yet  it  amounted  to  but  914  50  per  head  of 
population,  including  all  the  gold  and  all  the  paper.  To-day  should  we 
add  the  gold  lying  latent  in  the  community  and  that  in  active  use  to  oor 
paper,  we  should  more  than  dimbU  that  amount.  And  ret  to-day  we 
are,  as  a  nation,  much  poorer — witness  our  debt  and  our  last  war,  to  speak 
of  nothing  else — than  we  were  in  1800,  and,  therefore,  ought  to  hare 
l€$9  money  instead  of  more  I 


1869]  ▲  WAT  ov  Bsnnor  to  spsou  patmbhts.  1S5 

We  are  saffering  now,  not  from  Boarcifey,  but  from  plethora  of  money. 
Oar  prices  show  a  large  general  advance  beyond  those  of  1800,  and  the 
result  18,  that  we  cannot  compete  with  other  nations,  and  our  industries 
ODsll  bands  are  suffering  and  declining.  This  rise  in  prices  is  due  be* 
fond  any  peradventure  to  the  inflation  of  our  currency,  and  the  remedy 
for  these  high  prices  and  the  evils  flowing  from  them  lies  in  reducing  the 
eorreocy  to  a  more  normal  amount,  and  not  in  adding  to  it,  as  some  of 
oor  public  men  demand. 

1  cannot  at  present  pursue  this  argument  further,  nor  notice  other 
points  of  objection,  as  I  desire  to  present  a  plan  of  resumption,  that 
appears  to  me  feasible. 

Any  plan,  to  be  sufiBcient,  should  secure  the  following  points : 

1.  A  definite  and  very  gradually  declining  price  in  gold, 

2.  An  early  commencement  of  specie  payment. 

8.  Precision  and  certainty  and  consequent  safety  in  the  steps  taken  by 
Goyernment  for  that  end. 

4.  Immediate  provision  of  a  metallic  currency  for  the  smaller  business 
traniactions,  and  common  wants  of  the  people. 

5.  A  reduction  of  the  volume  of  the  currency. 

6.  A  gradual  decrease  of  the  national  debt. 

7.  Belease  of  the  Government  from  its  anomalous  position  as  issuer  and 
controller  of  an  irredeemable  paper  currency. 

When,  in  1819,  *^  Peel's  Bill"  was  passed,  providing  for  return  to  specie 
payments  by  the  Bank  of  England,  it  established  a  price  for  bullion  from 
Febraaiy  1st,  1820,  to  October  1st,  and  a  lower  rate  from  October  to 
May  first,  1821.  After  that  its  notes  were  lo  be  redeemed  in  bullion  at 
the  old  mint  price,  a  still  fuither  reduction,  and  2  years  from  May  it  was 
to  pay  its  notes  in  coin :  resumption  being  thus  completed  in  about  three 
years.  But  the  Bank,  being  largely  provided  with  gold,  began  to  pay  i^ 
out  io  1821. 

The  feasibility  of  establishing  a  sliding  scale  of  decline  for  gold  is  proved 
by  this  instance.  The  same  theoretic  a-priori-objections  existed  then  that 
may  be  supposed  to  exist  in  our  case,  and  yet,  once  begun,  the  desired  end 
was  gttned,  maugre  all  objections,  and  sooner  than  any  one  expected. 

An  improvement  in  the  mode  won'd  be  to  adopt  Mr.  Broomalls  scale 
of  decline  of  ^  per  cent  per  month,  as  better  adapted  to  secure  gradual  and 
uniform  changes  in  all  business  affairs.  But  merely  enacting  a  law  wil[ 
not  make  a  price  for  gold.  That  can  only  be  done  by  the  Treasury's 
being  p  p  re  1  to  pay  in  gold  at  the  appointed  rate.  And  its  disburse* 
meots,in  carr}i  g  out  the  other  features  of  this  plan,  will  be  ample  to 
completely  control  the  gold  market,  and  so  will  make  the  law  a  vital  fact. 
Retom  to  a  gold  aL  ndard  is  so  desirable  that  it  cannot  be  loo  soon  com* 
menoed. 


126  ▲  WAT  ov  RBTUBir  TO  8PK0IB  PATHxim.        [Febfuorf, 

No  single  step  could  place  the  national  credit  on  so  good  a  basis- 
would  do  so  much  to  enhance  the  value  of  our  bonds,  or  to  place  businea 
on  a  sound  foundation,  or  to  restore  prices  to  their  proper  level.  The 
mere  commencement  of  the  process  would  be  full  of  hopeful  augury  for 
the  future.  It  would  sweep  away  a  cloud  of  doubts  and  uncertainties 
thst  seem  to  overhang  us  now.  It  would  mark  a  definite  policy,  wbicb, 
once  known,  would  be  readily  conformed  to.  But  the  end  we  must  gain 
step  by  step.  We  cannot  at  once  meet  the  demand  from  400  millions  of 
paper  without  incurring  too  many  risks ;  but  we  can,  without  difficuity» 
find  gold  for  30  or  50  millions  of  paper. 

The  Bank  of  England  began  to  pay  specie  in  1817.  It  offered  eoio« 
first,  for  all  the  £1  and  £2  notes  of  a  certain  date.  Finding  the  demand 
small,  it  extended  its  payments  to  all  notes  issued  previous  to  a  certun 
date.  Tbis  was  done  according  to  the  report  of  the  Lord's  Committee, 
<<  in  the  hope  that  the  complete  resumption  of  cash  payments  would  take 
place  gradually,  and,  as  it  were,  insensibly .'^ 

An  unforeseen  drain  of  gold  prevented  this  plan  from  being  completed 
at  that  time.  Let  such  a  gradual  method  be  adopted.  Let  SO  or  50  mil* 
lions  of  gold  be  provided  by  the  requisite  taxation,  annually,  with  which 
to  make  payments  in  specie.  With  so  small  an  amount  to  provide,  this 
could  commence  almost  so  soon  as  an  act  could  be  framed  for  the  pur- 
pose. And  the  Treasury,  knowing  beforehand  just  what  it  must  provide, 
all  uncertainty  and  risk  would  be  taken  from  its  operations. 

And  let  the  first  step  be — redemption  of  the  fractional  currency. 
The  2d,  absorption  of  the  $1  notes,  followed  by  the  2*s,  3's,  5's,  and  soon 

the  largest  denominations  being  cancelled  last;  such   portions  of  each 

issue  only  being  taken  as  the  appropriation  will  provide  for.  And  to 
ensure  the  speedy  destruction  of  the  currency  and  small  notes  let  them 
cease  to  be  received  after  a  certain  date. 

While  the  smallest  paper  money  of  England  is  t25  and  of  France  $20, 
we|  with  the  greatest  gold  producing  country  in  the  world  can  pay  evec 
8  cents  in  paper  1  It  would  be  a  lasting  benefit  to  change  this  trash  into 
silver  and  gold.  And  probably  the  change  never  could  be  so  easily  ef- 
fected as  now,  when  the  measure  would  have  nothing  local  or  sec- 
tional about  it,  but  would  be  a  common  blessing  to  the  whole  com- 
munity, and  the  Government  itself  would  be  the  agent  in  effecting  it 

With  the  gold  premium  at  40,  and  a  declining  rate  of  i  per  cent  a 
monlh,  the  average  reduction  in  a  year  would  be  8  per  cent,  maklog 
paper  exchangeable  the  fir^^t  year  at  87.  At  this  price  50  millions  of  gold 
would  retire  $68,500,000  of  paper;  the  2d  year  $65,600,000,  and  so  oo^ 
until  in  5  years  800  millions  of  paper  will  have  been  cancelled,  at  a  cost 
of  237  mUliona  of  gold,  which  sum  would  then  constitute  the  amouot  of 


1869]  A  WAT  or  joaufof  to  bpxoix  patmxhts.  ^  127 

our  speeie  enrrenej — nearly  the  eame  amonnt  as  existed  in  the  country  in 
I860.  Of  course  beginning  with  a  lower  price  for  gold  the  same  resalt 
will  be  gained  more  quickly,  100  millions  or  less  of  legal  tenders  would 
still  remain.  Let  these  be  funded,  and  in  such  a  way  as  to  make  the  re* 
daotion  of  the  currency  uniformly  2  millions  a  month.  By  the  first  pro- 
cess indicated  $68,500,000  of  paper  will  have  given  place  to  50  millions 
of  gold,  making  a  reduction  of  18^  millions.  But  each  succeeding  year 
the  reduction  will  be  less  by  3  millions.  Let  funding  proceed  on  the  op- 
posite ratio.  Beginning  with  di  millions,  to  make  the  total  for  the  first 
year  2  millions  per  month,  let  8  millions  more  be  added  each  year.  At 
the  end  of  5  years,  when  300  million  will  have  been  changed  into  gold 
67i  milliona  will  have  been  funded.  Any  residue  could  be  retired  at  the 
same  rate  until  all  the  legal  tenders  ceased  to  exist.  We  should  then 
have  237  millions  of  gold  and  300  millions  of  notes  of  the  nationai  banks 
—100  millions  mora  than  we  had  in  1860.  This  seems  to  me  an  excess 
to  that  amount ;  but  once  our  currency  is  largely  metallic,  and  specie 
pajments  are  restored,  and  the  natural  laws  that  should  govern  the  quan- 
tttj  of  currency  are  left  to  operate  freely,  if  an  excess,  it  would  gradually 
drop  out  of  use«  A  change  in  our  law  by  which  the  banks  should  be 
made  to  follow  the  rule  of  the  Bank  of  England  in  issniDg  notes  would  at 
ODce  regulate  the  quantity  by  the  public  need  and  give  greater  sacurity 
to  their  issues. 

The  Bank  of  England  can  issue  but  fourteen  millions  sterling  on  the 
hisb  of  government  securities.  Beyond  that  sum,  every  note  must  have 
its  eqaivalent  of  ^old  in  the  bank  vaults.  On  this  basis,  her  note  oiron. 
lalion  varies  so  little,  that  in  1821— -47  years  ago— it  was  almost  exactly 
tbe  same  as  now.  And  yet,  since  then,  she  has  grown  steadily  in  popu- 
lation and  wealth,  increasing  her  numbers  firom  12  to  30  millions  and 
ber  foreign  commerce  500  per  cent;  still  money  was  nerer  so  abundant 
there  as  daring  the  past  year.  Let  our  banks  issue  100  millions  on  the 
basis  of  national  bonds ;  but  beyond  that  let  them  be  obliged  to  hold 
tl  of  gold  for  every  dollar  of  paper  issued.  Then,  if  it  were  found  that 
200  or  300  millions  of  paper  were  required,  they  could  be  emitted ;  and 
yet,  whatever  the  amount,  the  public  would  be  amply  protected. 

But  while  the  Treasury  is  absorbing  paper  and  substituting  gold,  what 
will  be  the  effect  on  the  national  bank  issues  ?  They  will  not  be  affected 
differently  from  the  legal  tenders  which  are  not  called  in.  They  will  have 
jost  the  same  relative  value  in  the  market  as  tbey  have  now.  If  tl^e  legal 
tenders,  not  subject  for  the  time  to  be  called  in,  appreciate  in  value,  as 
they  assuredly  will,  the  national  notes  also  will  appreciate,  and  for  similar 
reasons.  Simple  diminution  of  tbe  quantity  of  paper  money  would 
enhance  the  value  of  what  remains.    Moreorer,  as  gold  will  abound  more 


126  ^  A  WAT  OV  BSTURV  TO  SPSOIB  PATMIRTB.  [Fthnwy^ 

and  more  in  the  commuhity  every  year,  a  fund  will  thua  be  provided  from 
which  the  banks  can  draw,  to  resume  oash  payments.  Their  own  ioterert 
would  prompt  thf  m  to  do  this  so  soon  as  possible ;  should  that  fail  to 
move  them,  it  could  be  made  eompnlsoiy. 

The  initiative  in  specie  payments  seems  evidently  to  lie  Wtth  ths 
Treasury.  It  alone  has,  through  the  government  it  represents,  the 
requisite  control  over  the  supply  and  disbursement  of  gold.  It  can,  if 
necessary,  collect  more  revenue  in  gold.  It  can,  by  the  conversion  of  50 
or  even  30  millions  annually,  entirely  control  the  price  of  gold,  is 
conformity  with  any  rate  of  decline  that  may  be  adopted,  and  thus  cao 
secure  that  uniformity  of  reduction  that  is  almost  as  essential  aa  the 
reduction  itself.  And  there  is  gold  enough  in  the  country  to  admit  of 
the  course  suggested.  In  1860,  we  had,  according  to  the  Director  of  the 
Mint,#vho  was  aiming  to  show,  not  how  much  we  had,  but  that  we  had 
not  so  much  as  had  been  supposed — 285  millions.  Tables  show,  sioce 
1860,  of  imports  and  home  production,  an  addition  above  exports  of  some 
180  milltons.  Allowing  55  millions  of  error — no  small  mistake—aod 
we  have  400  milliona  *  But  let  it  be  only  300,  and  that  ia  ample  to 
carry  out  this  plan.  Government's  action  would  take  nothing  away— 
would  not  leave  the  nation  one  cent  the  poorer — but  make  it  all  the  richer 
in  good  money  and  good  repute.  It  would  merely  call  into  activity  what 
now  lies  latent  It  would  convert  what  is  now  only  merchandize  into  a 
most  stable  and  valuable  currency. 

And  the  work  can  be  commenced  at  once,  just  as  well  as  ten  years 
hence;  ten  or  twenty  years  hence,  the  objections  to  a  goverameDt 
accumulation  of  gold  enough  to  commence  cash  payments  on  an  udHqi- 
ited  scale,  would  have  the  same  force  as  now.  Some  gradual  plan  seems 
the  only  course  left  open  to  ns.  And  there  is  nothing  to  prevent  some 
well  digested  method  from  being  adopted  at  once,  if  diJering  views  can 
only  be  sufficiently  reconciled. 

To  sum  up  briefly  the  advantages  of  the  plan  proposed : 

It  ensures  a  6zed  and  gradually  declining  rate  for  gold,  and  thus  gives 
steadiness  and  security  to  business. 

It  makea  possible  an  almost  immediate  return  to  specie  payments. 

It  secures  entire  safety  to  the  Treaaury  in  the  operation. 

It  will  reduce  the  currency  moderately,  and  yet  allow  it,  if  found  neoes- 
aary,  to  expand  with  entire  safety  to  the  communiiy. 

It  will  reduce  the  public  debt  annually  24  millions,  and,  while  doing 
that,  will  rid  us  of  an  irredeemable  paper  currency,  and  substitute  a 
sound  metallic  one. 


*  W  hsve  shown  In  a  prtTions  number  of  the  lUaAnm  th't  Uie  writer  is  ia  siror  oa  tUs 
point  of  Uia  Odd  finppl  j.-'B  J.  Huht*s  Mbbohaxts*  Ua^amom, 


1869J  RAiiAOAD  XABiriiioi  VOE  1868.  129 

It  will  free  w  from  the  anomaly  and  discredit  of  onr  goTernment'e 
keepng  a  bank  of  the  ^  wil !  cat"  crder,  whose  issues  represent,  not  value 
IB  band,  but  debt  that  cannot  be  paid. 

And  \(^  in  addition,  the  banks  are  put  on  the  solid  specie  paying  basis 
loggested,  we  shall  have  a  safer  and  better  currency  than  ever  before. 

And  all  this  will  be  done  so  gradually,  and  uniformly,  with  so  little 
jsr  and  disturbance,  that,  almost  insensibly,  we  shall  get  rid  of  a  currency 
representing  debt  and  poverty,  and  find  ourselves  established  on  the  solid 
bisis  of  silver  and  gold.  H.  Lambsbt. 


^^^t^*^»0^0*0*0^^i^*0*^t0^0*0^f^ft^^f^l^0^f^i^r^fm 


RAILROiB  EiBNneS  FOB  1868. 


The  past  year  has  been  one  of  increased  prosperity  to  our  railroad  interest. 

This  is  due  in  great  measure  to  the  abundant  crops,  which  have  svpplied 

the  necessary  through  freight  east,  while  the  fuller  development  of  the 

sorrounding  country  is  adding  greatly  to  the  local  business,  and  giving 

the  roads  a  more  permanent  value.    From  the  returns  of  fourteen  roads 

it  appears  that  there  has  been  an  aggregate    increase  in  the  gross 

esraings  the  past  year  of  $4,627,661,  or  over  seven  per  cent.     The  fol* 

lowing  are  the  gross  earnings  of  these  companies  for  December,  and 

sko  for  each  of  the  last  two  years : 

r— December *  «— Twelve  Months— % 

BailroftdB.  18S7.  1868.              1367.  1868. 

AUutieandGreat  Western $850,887  $860,000*  $6,0»4,4S1  $4JS4,81S 

Chle^o  ftnd  Alton 860469  Zii^.&tS         3,80S,661  4,644,188 

Chicaso  end  Northwestern 918.088  1,001,899  11,719,248  1M99,6?4 

Chicly,  Rock  IslsadfePaclilc 861,000  881,400          4,105,'03  4,487,791 

UUaoit Central 618,880  70«,618          7,16>,991  7,^98.468 

lC«ri«ttaaadClBClmMtl....' 198.883  191,408          1,«68,718  1.994,0S5> 

lOdiigan  Central 830,878  880,«m  4,871,071  4,67u,014 

Michigan  South.  A  North.  Ind 870,767  426,818         4,618,748  4,994,468 

XUwnkeesndSti^al «  488,896  468,796  6,688,609  6,617,669 

Ohio  and  Mississippi.  .  979,068  988,861  8,469,819  9,964,089 

PlttshuK,  Ft.  W.  &  Chicago 67S,746  780,278          7,94*2,120  8,007,768 

StloQl  .Alton  ATer  eHante 171.499  167,879  9,907,980  1,998,869 

Toledo,  Wahash  and  Western 807,948  830.796          8.788,890  8,969,067 

WtttsmUnion 64,718  46,470            774,967  764,971 

Total $6,906,800    $6,719,915      $66,860,919  $69,188,618 

It  will  be  noticed  that  a  large  portion  of  the  increase  has  been  over 
rosds  ranninj;  tbrough  newly  settled  country.  The  Cbicago  and  North- 
western, for  instance,  shows  an  increase  of  $1,V17,286,  indicating  the 
profit  which  is  flowing  to  the  company  from  the  new  country  developed 
by  it.  On  the  Milwaukee  and  St.  Paul  there  is  a  gain  of  $833,953,  but 
there  has  been  an  extension  of  mileage  on  this  road  from  735  miles  to 
825  miles.  For  the  purpose,  therefore,  of  indicating  the  actual  earnings 
on  each  mile  of  road,  we   have  prepared  the  following  table,  showing 


•Setlmatcd. 

4 


•  •  • 


t  •  • 


180  RAILROADS  ov  OHIO.  [Fehruory, 

the  leDgth  of  eadi  road,  and  the  ffi'^u  earnings  per  mile  during  each 
of  the  two  years : 

«^Le  gth  BL^  r-Baniogs  p  m.'^  r-Dtfet^te-i 

Bailroada.  18>.T.  1388  1867.  Id6a  Inc.    Dec. 

▲tlEDtc  and  Great  Western 607  607  $10,048  $»,S19  $....    SW 

Chieaico  and  Alton* 280  481  18,908  IS^iOl  ....    1,101 

ChlCdffo,  Borilngton  A  Qain<7 400  400  15,806  16,888  80 

Ohica-oand  Northweatem l,15i  l,16i  10,S(»  i:,667  1,895 

OhlcKi^o.  Rock  leland  and  Faciflc 449  464t  9.^87  9,884  697 

Xninoia  Oentral 708  708  10,114  11,060  988 

Mnriettaa  dCincinnattl S61  961  6,016  6,66  141 

Michigan  Central 9i»  890  18,888  18,994  689 

Hicb  £an  Soathera  A  North.  Ind       634  694  b,806  9.7r8  898 

Mllwanx  e  and  ^t.  Paul 786  826  7,789  7.900  168 

Ohio itnd  Misalflfippi 840  840  10.178  8,718  ....    1,4U 

Pitt-^bufff.  Ft.  Wa>ne  A  Chicago 4tt8  468  16,474  17,176  htitl      ... 

St.  L  awAltnnA  TerreHante 910  910  10,614  9,161  ....    1,S8 

Toledo.  Waaah and  Weatem 621  6^1  7,969  7,684  8Si      ... 

WetemUnl^^n ^ 180  180  4,806  4,941  ....        61 

In  the  absence  of  any  returns  showing  the  operating  expenses,  the 
foregoing  table  will  be  of  decided  interest,  as  the  expense  account  must 
be  in  a  grent  measure  dependant  upon  the  length  of  road  operated.  As 
some  test  of  the  relative  value  of  the  stock,  we  give  the  following  state- 
ment of  the  total  stock  and  bonds  of  each  company,  with  the  earnings,  for 
a  series  of  jears : 

TotaretocK 

and  boi  da  * ^Earnings  for » 

Ranfoads.                         Dec.  81*68.      1968.          1867.  1868.         1816. 

AUantIc  A  Great  Weatakn $68,06U,fi66  $4,734,F16  $5,094,421  $6,476  976 16,8:6,885 

Chicago  and  Alton ]0,9&6,989    4,544,188   3,699,861  8,695,159   8.8l0,«tt 

Chic,  BnrrgtOQ  AQnlncy 17.76^,780    6,164.647    6,088,188  6,179,5-*A  ^0(K^i,i<t) 

Chicago  and  Northwi»tem 48,fl85,8h8  18,499,584  11,719,918  9,494,450   7,97«,4S0 

CbicKork   s.  AFadflc 99,971,500    4,487.791    4,1('6,108  8,466,9v9   8,3:8.^4 

)mn  li  Central 85,9Ne,7U4    7,898,468    7,16»,991  e,ft4*»,741    7,191.a« 

Ha  ietU  &  Clricinoatl 90,690,866    1.994,U96    1,958,7)8  1,301,999    1,9$405S 

K  chigan  Central 15,446.854    4,670,«14    4,871,071  4,?6a,i95   4.62(i,'G0 

Michl.  8oatn.AN«irth.Ind 90,7H7.980    4  H84,458    4.618,748  4,(6<«.8iS    4,  SH.TS7 

Hilwankee  &  St.  Paul 8'>,464,975    6.617,564    6,688.609  4,559,f49  $VOO,uU0 

Ohlu  and  MiaHaa  pbi 27,150,001    9,964,089    8,460,819  8,^80,588   8,7  8,06 

Pitteb.,Pt.  Wa.fne&  Chi 94,008,000   8,0«i7.768    7,94i,l96  7,4H7,9i8   fi,48>',0fti 

St.  Louis,  Alton  AT  Haute 11,0«VmO    1,998,869   S.9ii7,980  9,£5I,6i6   9,940,744 

Tolrdo,  Wabaeh  A  Weat 90,000,000    8,1)68,0(57    8,788898  Si^M.^OG   9994,548 

W^B  era  Union 6,868,098      764,v71      774,969  814086      i89868 

Total 87M60,669  76,lT8i990  7M44iotf  97,067^^ 

From  these  statements  it  will  be  seen  for  instance,  that  the  Chicago  aod 
Alton  has  earned  the  past  year  $4,544,133  on  431  miles  of  road,  (tbo 
first  six  months  of  the  year  only  280  miles  were  run,)  and  that  its  total 
stock  and  bonds  reach  $10,255,982  ;  that  the  Chicago  and  Northwestern 
has  earned  $13,429,634  on  1,152  miles  of  road,  and  that  its  total  stock 
and  bonds  reach  $48,985,303;  that  the  Chicago  and  Rock  Llaod  lias 
earned  $1,4B7,791  on  454  miles  of  road,  and  that  its  total  stock  and 
bonds  reach  $22,271,500,  and  6o  on,  for  all  the  roads  given  above.  In 
this  manner  we  obtain  a  pretty  fair  idea  of  the  results  of  the  year. 

SlILROAOS  OF  OHIO. 

The  Hon.  George  B.  Wright,  Commissioner  of  Railroads  and  Tele- 
graphy, has  favored  us  with  an  early  copy  of  his  second  annual  report 
relating  to  the  public  works  of  Ohio.  An  analysis  of  his  first  report 
was    published    in  the    Magazikb    April,  1868,  and  we  then  referred 

*  Since  Jnne,  1868,  the eamlnga  of  rne  JackaanTille  Branch  are  inclade<l*in  chicuoaod 
Alton  retnma.       t  The  Chicag  and  Bock  Island  Boad  the  laat  4  months  haa  been  506  miles. 
t  Sstimated  for  1866. 


1809]  RAILROADS   OF  OHIO. 


181 


to  tbe  energy  and  indastrj  the  compiler  has   brought  to  bear  on  his 

work,  and  of  the  readable  method  adopted  in  the  presentation  of  liis  Gg* 

ores.    There  were  certainly  faults  in  the  report,  but  onlj  such  as  further 

eiperience  in  office  would  correct,  and  there  were  deficiencies  which  we 

could  not  but  deplore.    The  improvements  in  the  present  report,  howeveri 

are  apparent  and  much  to  our  liking.    The  work  contains,  besides  the 

reports  as  sent  in  by  the  several  companies,  extensive  tabulations,  asrgre* 

gale  and  comparative,  which  will  be  of  great  value  to  the  publicifet.    It 

also  reproduces   the  general  laws  of  the  State  relating  to  railroads  and 

A  series  of  well-written  sketches  of  the  rise,  progress  and  present  condition 

of  the  several  lines  of  railroad,  with  essays  on  railroad  economy  generally, 

nilroad  management,  free  passes,  competition  rates,  taxation,  <bc.     On 

tlie  whole,  the  report  is  an  able  exhibit  of  the  great  interest  it  embraces, 

^od  deuiands   of  us  a  more  than  usually  extended   notice.    We  have 

therefore  prepared  the  following  statement  showing  the  length  of  the 

i6?eral  railroad   lines  within  and  without  the  State  separately ;  the  stock 

of  engines  and  cars  in  use  on  the  whole  of  each  line,  and  the  number  of 

ptTtoDS  employed  in  operating  railroads  in  Ohio  on  ihe  30th  of  June 

1868: 

/-Milee  of  R.  oompto'cK  ^No.  of  (8  wbeel)  oar^    h  o 

BAUiosdiu  I  I        I        |||^|||S2 

MiL^ioTn^l'::::::::::-::::::;  13  S  ^-^  %f,V^^  S  4o  ^.Ss  8«  ^^,  tn, 

C^rulioa  A ODvida... •«...». ••»*•.••      9.00  ...  IS. CO  111        91        6  IS 

OMBlOhio 187.08  ...  187  08  40    90    S6     909    180     fil8  1,898 

Ca.HAin  aDa>ton SO  OJ  ...  00.00  84    81    18     4^      11      4t»  757 

Cin.  ftlnd   (leafed) 9»..'0  O.IO  97.80      918 

Cnltcb.A'hic 8S.00  6.00  84.00  6     8     8       70       1       77  64 

J■^^i^^^'•::::^.:::•.::::::::•/«":!"'S:iS^«»  •  *»  *  •" 

Lu  AZoneavlUe 1}S9.18  ...  139.18  15  11  6     900  9  978 

Cn-Y.  CoL  Ci.i   Al— 

Bvlirootaloe 909.60  ..  1'8.40  86  99  10     854  ..  68A     499 

Cltv.Col.A    in 187.»8  60.00  187  88  47  26  10      771  9  810  1«910 

C«T  Antubnnr 1U8.<M  82.00  189.(0  60  87  9^  1,9''8  81  MlO  1,187 

tl^T.  ZtntaT.  ACio 60.75  ...  60.75  6  6  4      161  161      199 

<ol  Che.  AIndC«& 6  4.50  ...  IjiO.UO  116  66  96  1,700  600  9,890  1,090 

C  >l  A  Uoek.  Va  toy,  C'lB  mtlof ) 11  00  

DiytoQ  A  ulcbgoi 14900  ...  14i.00  91  8  8     869  10  889     671 

Dayton  A  taioti 81.81  ...  8181  4  4  3       66  6       6U       80 

lro» • 14.00  ...  18  lO  4  9  ..       18  88  1<8       43 

Juttction(Cla&Iiit.)  .  93  00  95.00  80  0()  14  19  6     180  SU  987       61 

U£h«  4  Loauiville(175milet).....    87.00  ...  87  00  8  9  1       95  ..  98       60 

Sr,.*-ii^*:;:::::::::::::::::iS:??  ^isi  mS?} "  «  "  -•"  »« »•'« «.» 

HtaeW  mi    84.00  ...  M  Oj      

,Co.«X«ilA 64.69  ...  64. 6J             

lilUeMl.  ACo.&X 45    40    U     788      ..      7c<7  1,090 

**      X.  ABeUou 15.96  ...  16.96 

^   ;*      aadWo>i*D 49  00  ...  8s.iO 

lMletU*Oln  190.M)  86.C0  976.80  68    94    10     540      ..      674  1^487 

Mkh..ooaUi.  ANIq 519.S8  ...  8>.»>  9tf    8U    94  1,570      ..1,674      440 

ewLi»ho.<3<.5») 13.0  .  .  13.00  111         1      ..         8       19 

Obo&IUM 349  00  ...  19.53  7»    39    9i  1,901        4  1,966      i4ft 

fiH.an.  * -M.  L 193.00  7.50  1^.90  79    3'     15      781      70      89 f  1,144 

h-UPuW.*Chic 468.30  88.90  959. 7^)  179  181    64  9,584    108  9,8ii    1.664 

SiqMui   ANewark.        116  85  ...  116.86  10    ll      4      190      ..      ^5      32& 

ru]atfoWab.AW«»t i..  475.0)  46.00  75.60  105    47    30  1,144    8»9  9,118     648 

Total  CM9QL«Tm.) 6874.17  889.99  8866.98  1888  806  89780,6198,984  8896119^ 


183  BAILR0AD8  07  OHIO.  {FebrUOTf^ 

The  total  length  of  railroad,  main  line  and  branches,  completed  and  in 
progress,  and  reported  in  the  above  table,  is  5,890.67  ibiles.  Of  this 
length  5,274.17  miles  of  main  line  and  389.02  miles  of  branch  line, 
making  a  total  of  5,664.09  miles,  were  completed,  and  leaving  out  ihe 
Columbas  and  Hocking  Valley  Railroad,  11  miles,  which  had  not  been 
brought  into  use  at  the  close,  of  he  trailroad  year,  the  total  length  is 
operation  in  the  year  1867-68  was  5,653.09  miles.  Included  in  this 
aggregate  is  2,408.16  miles  of  road  within  the  limits  of  the  States  adjoin- 
ing Ohio  east  and  west. 

On  the  5,653.09  miles  of  railroad  in  operation  in  the  year  1867-68, 
there  were  in  use  1,828  locomotive  engines  and  23,951  cars  of  all  kinds. 
This  avei'agea  to  each  hundred  miles  of  railroad  23.4  engines  and  423.7 
cars.  The  proportioa  of  each  kind  of  cars  to  the  whole  number  was  as 
follows :  passenger  808,  3.87  per  cent ;  express  and  baggage  397, 1.66 
per  cent;  tonnage  or  freight  oars  20,512,  85.64  per  cent;  and  others 
(not  specifically  described)  2,234,  9.83  per.  cent. .  These  averages  and 
proportions  of  course  vary  on  the  several  lines.. 

The  length  of  railroad  in  operation  in  Ohio  alone,  excluding  the  Col- 
Timbtts  and  Hocking  Valley  Railroad,  was  8,244.98  miles.  Of  this  148.99 
was  double-guage  road,  in  connection  with  the  Atlantic  and  Great  West- 
em.  The  lenth  of  second  track  on  six  roads  was  8,828  miles,  and  the 
length  of  sideways  on  the  roads,  in  the  aggregate,  445.89  miles.  The 
total  length  of  track  io  use  within  Ohio  was  thus  3,928.09  miles.  The 
number  of  persons  engaged  in  repairs  and  operations  on  these  rosds 
was  19,884,  or  about  five  to  each  mile  of  track.  These  statistics, 
applying  only  to  the  railroads  within  the  State,  are  of  great  value,  and 
ought,  if  possible,  to  have  been  given  in  like  manner  for  the  portions  of 
lines  beyond  the  State  limit,  the  cost  and  operations  of  whichare  embraced 
in  the  returns. 

The  total  cost  of  the  5,890.67  miles  of  main  and  branch  railroad 
(including  226.58  miles  not  yet  completed)  amounted  to  $288,269,958, 
and  the  equipment  (engines  and  cars)  in  use  on  the  same  roads  amounted 
to  $14,299,916,  making  an  aggregate  cost  of  $302,569,874.  For  the 
total  mileage  this  is  about  $51,861,  or  for  completed  roads  alone,  $53,470 
per  mile.  The  cost  of  the  3,255.93  miles  of  railroad  in  Ohio,  and  the 
equipment  thereon,  amounted  on  the  latter  average  to  $173,935,520. 

1  ids  co3t  is  represented  by  paid  up  share  capital  $172,047,542,  funded 
deb^  $133,111,294,  and  floating  debt  $8,4  94,466,  or  a  total  capital  of 
$313,653,802.  The  proportions  of  these  several  classes  are:  Shares 
54.85  per  cent,  bond  542.44  per  cent,  and  floating  debt  2.71  per  eeot. 
This  exhibits  a  strong  financial  position,  and  indicates  a  general  pros- 
perity not  anticipated.    More  than  half  of  the  floating  debt  reported  is 


1869]  BA2LB0AD8  OT  OHia  188 

retaroed  for  the  Pittebarg,  OiDcinnati  and  St.  Louis  Railroad  Companj, 
and  ooDsists  of  debts  not  yet  brought  into  the  recent  consolidation. 

The  statement  which  followa  exhibits  in  detail  the  amount  of  stocks, 
bonds  and  debts  of  each  companj,  and  the  co(>t  of  the  property  owned  by 
them  eeverally : 

Batlroad^ — Stock,  bonds  and  debt— %r-€ostof  Prop^y-^ 
Com-       Capital       Fnnded  Floating  Aggregate    Coat 
BaUroads.  plated.       stock.         debt.        debt.      amoayt.  p.mile. 

At.A9t.West 436.16  99,R««,606  80,00\000  963,514  0O,7i8.8B4  117.800 

Oter.  A  Mahoniikg 79.60  9,056.760  1,866,800  8,8iO,836  48,190 

Ctm>lU)iiA0nek&. ,.  li.QO  101,000  ........  9,00)  108,600  8,696 

rentralOhio 187  08  8.000,r00  9,600,000  ll.SOl  6,511,209  8;s930 

Cia.,Ham.a;Da7. 60.00  6,600,000  9,03i,0()<)  889,563  6,971,949  87,806 

Cin.&lndliina S7.20  600,000  9,0u0,000  1,894,478  99,414 

Cia.Bich.ACblc 4i.00  874.100  660,000  18,968  039,885  9«,(i04 

Cin.,8ard.  *CleT 171.00  8,9i8.J50  9,897,000  6,70i).000  86,774 

tipnn^pldA    ol 90.00  (sunk  in  sale)  846,000  17,800 

Oil.  AZaneaTilte 182.00  1,669,861  V.00,000  9,969,861  99,474 

a.Ool.ilB.Aln— 

BellefjBtaine. 99'».60  4.490,(^00  1,691,000  6,679,819  97,977 

Ci.  <ol  Ada 187.88  6,000,r00  4d'>,000  4.888,580  96,008 

Oer  APittaborg 996.00  5,957,895  4191,0)0  10.?{85.M0  61,936 

a.,Zf&ea.  *ti 60.76  (Bank).  95^000  1,676,081  95,937 

CoUCh.AInd.Ce& 694.50  11,100,000  14,469,594  919,444  91,488,968  44,148 

Coi.AHockiDgVal 11.00  419,f«8  969,600  5!  ,944  46.544 

>>TtoQAllicblgaii, 149.00  9892,761  8,650,500  889,500  6,950,499  44,018 

DiTtoo  *  Union 81.81  •  76,000  597,445  19,769  60^684  18,888 

Iron ...: 18.00  189,411  S6,0;0  »S,400  814,879  94,391 

J3Dct{oo(Cia.A  lo) lS8.0tl  1,736  760  8,596.700  870,(i84  6,R94,0»6  45,794 

L  ErieALooiSTilJe Sr.GO  1,911,700  500,00J  0,000  1.790,700  96,880 

LikeShoie—  .     . 

t'lere.  P.  A  Afb 96.63  8,947,650  9,500,000  9,744,874  109,678 

C.eve.  A  Toledo 1S6  57  6,950U)00 .    8,149,186  8,191,699  79,499 

fUttleMUmi 84.00  8,579,400  1,(89.000  8,7t5,';V7  41,960 

,  I   ol.  Xenia 51.69  2,786;M0  948,000  1,482,84  •  98,iH{l 

Lu  llli*  AC.AX 951,615  4,855 

p.,X.aBerrae 15.96  419,580  97,086 

^  ID.  A  Western 49.C0      788,000  1,087.719  95,899 

atr  A  Ci'.dnnatl 976.80  14,690.866  6.806,000  488,970  19,808,119  t>9,787 

Kich.S.A.M.Ind 519.88  11,819,600  9,088,640  18,819.6(t7  86,716 

^ewU#boq 18.00      1,000,000  6»8,*16  5i.«8i 

A)a.4Muela»{ppl 840.00  98,fi00,000  8.S8tj,000  97,»«,000  K).5^8 

Pb^^Cftbt  LonlB*.— 900  60  5,000  000  4.0U8.000  4,7fi0,i'00  18,7A8,00i)  71,285 

Fbg^^.W.  &Chlc 600.£0  11.600,000  19,668,000  158,900  92,999,786  4!4,146 

8ftn.XftnB.a;New*k      116.96  900,395  9154,(00  8,050,945  96.939 

Tol.,Wab.AW*n 591.(0  6,700,000  14,449,000  91,149,000  40,519 

^Totil 5,661.00  179iot7,549  188,111,994  8^494,466  803,6()9.874    53.490 

PraportioaforOblo 9,253.98   98,891,000   76,510,266  4,888,805  173,935,520    53,490 

The  mileage  of  trains  on  the  same  roads  at  71,507,786,  which  is 
eqniralent  to  12,500  trains  over  each  mile  of  road.  This  is  evidently 
an  error,  and  is  explained  by  the  Commissioner,  who  states  that  in  several 
iosUnces  car  mileage  is  returned  ioatead  of  engine  mileage.  The  total 
oamber  of  passengers  carried  was  0,436,416,  and  the  tons  of  freight 
moved  wss  (through  4,773,007  and  local  6,040,528)  10,813,535.  In  the 
transportation  of  these  passengers  and  this  tonnage  622,872  cords  of  wood 
and  264,463  tons  of  coal  were  consumed.  The  gross  earnings  amounted 
to  147,118.722,  of  which  $14,861,784  was  from  passengers,  $20,001,212 
from  toonsge,  $2,905,959  from  mails  and  express,  and  1936,158  from  al 
other  sources.  The  total  expenses  for  operating  amounted  to  $32,920,034* 
aod  the  nett  earnings  to  $14,198,688.  From  this  amount*  was  paid 
t6,^S,726  for  oonstntctton  and  new  equipment  and  $3,801»291  for  dirt- 


THI  TAXATION  or  LOANB   AB  OAKTAL,  [F^rvOTf, 

\f.  Included  in  txpentes  flr«  taxes  (Stale  (1,087,270  and  nationil 
r.lOS)  tl,644,87fi.  Tbe  ratio  expeows  to  eitniiDgs  was  61  percenti 
Hie  groM  eHrninga  per  tnile  of  road  operated  l8,0O7.Diiidenda  i>«re 

on  t63,444,8Sd  of  stotk,  leaviog  a  ba  ance  of  tlO8,002,717  sUKk 
iiut  nnj  dividend.  Tlie  amount  of  iroD  laid  down  to  replHce  wont 
rail  on  the  Ohio  lioea,  during  tbe  year  1807-8,  wm  (new  19"  and 
>lled  H26)  62S  miles,  or  on  tbe  arers^  the  reoewal  was  equnl  to  one 

in  every  0^  miles  in  ns«.  The  same  rate  would  thus  relay  tbe 
le  system  in  6^  years. 

be  following  table  shoirH  tlie  earuioga  of  the  several  lines  and  the 
Its  as  to  dividends  : 

Hlles  , EunlDgi .        D\^ 

B>Uroa6>.                 opcnt^,  Giom.  MtU.        dtsdi. 

tle»<]  ami  WnUrn 496.1BI  .,  om  oiui  <i  u»  an       }  » 

l-xd  «id  HuhodlDg  Weof  •*."^'W  «1.M».81S       \» 

Iron  snd  OMtaa It  HO  4,113  l.OffldefleU     .... 

»IOb1o  ..   ... 1S7I«  l.nu.Kta  Bi.WI       ■'         • 

DBil.Hamlllnxiiid    arWD SU.UO  ],»e,lleT  M«.«tS         14 

null  KDd  IiiillMUt _ n.M  tU4.tA»  f.um         ID 

Nioll.  RltbmoiHl  ind  Lbkaio 4i.0a  lO.'t.MS  lS,NrTd.aat     .... 

s-niCyandClrTrl  Dd 111.00  717.«W  null 

E«FtdaDdColiimtai SU  DO  I3,iue  R.WS 

DDStl  >Dd  EmkitiI  e inua  tSMM  IT.t^S 

„    .  ,    1  Bi'llL-tuDial  • 101. 'O  l,47S,MO  E^.  B->           I 

^  ■'■1CI«».  im.  *.iB im.88  l.TWjeO  BIO-TBO           » 

laKdaod  PiLUburn        fK.tO  l,t4«,lBS  Blf,4ta           1 

,Zin<evi'.le   nd (.IndiiiiaU tO.TC  lfl9,»ll  !],«»« 

Ch[c.  iDdlnd.lnilnl EM  SO  S,(no.eM  lO.i.^SS 

nb  i>  and     OAktng  Vil  er 

inaa     MlcbUaa 141.00  Otn.tSt  tMHittHl     .... 

DaalU'ivn    8)61  IIMTO  IMIu 

IS.W  6«,eil  i^.ftM 

on(ClD.  UMllDd.) lt'..it>  !».«<  r« 

Brw.ndLonlaTlle S7.00  4S,0»  t.OTS 

«>"''{i!:;;ia^d*^*.S;:.;-::::;;:::::::  iS.S?j  '^^»     i-w»oi{    ; 

ruiile  Miami  Bt.OJl  4.1 

I'ol.  *Xu  la M.«l  4.1 

HUmlACa'Dmba(£X y  ySKJSU  HO,en 

inaTX.A'allt'n U.*l  I 

IDaTUiiiAWiiet'D 43  U)  J 

Uaaxd  Cincin  all ns  60  ].8nil.4n  lMl,tl» 

>.  AN.Iadlana lUIS  4,eai,«tl  1,WMie4          li')- 

Llabon IS.OO  1S.BW  f.TJS 

in    M  iila  Ippl 'S  mcx.) S40  00  1,BM.1»8  taH,VA 

or:. '  In. 'Ld  St.  I.oa'a MCI  DO  l,S)l8,atl  r<4il.4<f 

DK.Ft.K'avD.andL'hca  0 MO.M  7.T9I,W1  S,)*  l,<nS          10 

lakv,  Mimfleiiiand -eaaik US  ts  414.BJS  IM.MO 

0.  Wabaib  anil  WeiteiD Bdl.OO  S.TSt.HIO  1.0Sa,nS 

ital B,(IBS.<«    tlT.lie.'N      tl4,l«a.aB 

l^onloa In  Oblo S,Ml.tS      njMT.inB  B,1B1,«I0 


THE  TAXJTION  Of  LOADS  IS  CAPITAL, 
le  Assesaor  of  the  Thirty-seoond  Distriot  has  made  a  very  aitra- 
lary  demand  npon  the  bankers  of  hie  districL  Section  110  of  the 
>f  Congress  of  Jnl;  19,  1696,  imposeB  upon  bankers  «  tax  of  1-94  of 
•r  cent  on  the  capita)  employed  ia  their  busiDass.  The  Aaseaaor 
mes  tbe  lermjoaphal  as  meaning  not  only  tbe  c^tal  proper  of  tbe 
er,  but  also  any  amonnts  he  may  borrow  in  the  ordinary  course  of 
business,    la  a  circular  recently  issued,  he  says ;  "  Acoording  to  tb« 


1869]  THE  TAXATtOK  OV  LOAM   AS   OAPITAU  185 

ruling  of  the  Commissioner  of  Internal  Revenue,  money  borrowed  or 
received  by  a  bank  or  banker  and  employed  in  his  business  must  be 
€/)ns]dered  capital,  and  taxed  arcordingly.  All  money,  therefore,  thus 
borrowed  or  received  and  used  in  banking,  not  in  brokering,  as  margins 
opon  which  tax  is  paid  by  stamps,  is  required  to  be  included  in  monthly 
returns  of  capital."  As  further  illustrating  the  position  taken  by  the 
Assessor,  the  following  suppositious  case  was  stated  by  him  recently 
before  the  representatives  of  the  boards  of  brokers:  ^*  Suppose  A  is  a  banker 
doing  business  as  a  broker.  B,  a  customer,  orders  him  to  buy,  for  his 
account  and  risk,  say  100  shares  of  stock  of  a  market  value  of  tlOO  per 
sbare,  at  the  same  time  depositing  as  *  margin,'  ten  per  cent,  or  $1,000. 
A,  not  having  the  necessary  capital  himself,  borrows  of  C,  the  remaining 
ninety  per  cent,  say  99,000  (leaving  as  collateral  security  in  his  hands  the 
certificates  for  the  100  shares  of  stock),  thus  making  good  at  the  bank  his 
check  for  the  whole  amount  of  110,000,  which  he  pays  to  D  for  the 
sVx-L  Now,  what  capital  has  the  broker  '  employed  in  his  business' 
io  this  transaction  f  It  is  the  whole  110,000  for  which  be  gave  his 
check  to  D.** 

The  singular  position  thus  assumed  appears  to  us  to  involve  some  very 
obrioas  misconceptions.  In  the  first  place,  the  Assessor  confounds  the 
basioess  of  brokering  with  that  of  banking.  In  the  case  here  supposed, 
A,  the  banker,  does  business  as  a  broker;  the  money  be  borrows  for  the 
purchase  of  the  stock,  he  borrows  as  a  broker;  in  short,  he  performs  no 
other  functions  in  the  transaction  than  such  as  belong  to  the  broker  and 
do  not  pertain  to  banking.  Where  then,  under  the  term^  of  the  law^ 
does  A<«essor  Webster  find  his  right  to  tax  such  a  transaction  as  that 
of  a  banker^  In  fact,  in  the  above-quoted  circular,  it  will  be  seen  that  he 
explicitly  excepts  the  money  borrowed  in  "  brokering"  from  liahUity  to 
^^  tax.  It  is  inconceivable  how  an  officer  charged  with  the  collection  of 
revenue  at  the  great  financial  centre  of  the  country  should  have  attempted 
to  give  such  a  forced  construction  of  a  statute.  His  claim  amounts  to 
nothing  less  than  a  tax  upon  the  whole  transactions  of  Wall  street  in 
itocks,  gold,  bonds,  and  foreign  exchange,  averaging  $150,000,000  per 
dsy,  and  aggregating  about  $500,000,000,000  per  annum,  the  proceeds 
of  which  would  exceed  $20,000,000  per  annum. 

We  are  willing,  however,  to  believe  that  the  Assessor,  in  his  super. 
Krviceable  seal,  has  overstated  his  own  actoal  purpose,  and  that  he  aims 
to  collect  the  tax  only  upon  capital  used  in  banking.  This  supposition 
it  consistent  with  the  language  of  his  circular,  though  wholly  inoompatible 
with  his  oral  representations.  The  question  then  arises,  what  does  the 
law  conmplatete  in  the  phrase,  ^capital  employed  in  but-inesar**  Does 
t  mean  the  hanker^s  own  capital,   or,  in  addition  to  that,  capital  he 


136  THX  TAXATION  OV  L0AH8  AB  CAPITAL.  [jPVftftMfy, 

may  borrow  t  Id  the  ordiDary  aooeptation,  the  term,  when  applied  to 
pereoDB,  firms  or  corporations,  represents  the  amount  properly  owned 
by  them  and  employed  as  the  basis  of  their  business.  Indeed,  in  tbe 
ordinary  usage,  capital,  so  far  from  being  ^regarded  as  synonymous  with 
borrowed  money,  is  used  in  contradistinction  from  loans.  The  borrowed 
money  of  a  firm,  instead  of  represent  ing  its  capital,  represents  its  debts ; 
and,  in  this  view,  there  is  a  most  obvious  impropriety  in  taxing  borrowed 
money.  We  can  easily  understand  how  a  firm  should  be  taxed  upon  what 
it  possesses;  but  to  tax  it  upon  what  it  owes  is  a  most  remarkable  inven- 
tion in  the  science  of  taxation.  Moreover,  even  supposing  it  were 
allowable  to  tax  borrowed  money,  it  would  be  a  gross  injustice  to  impose 
the  same  rate  upon  it  as  upon  capital  actually  owned ;  for  the  obvious 
reason  that  tbe  nrofit  upon  the  borrowed  capital  is  nominal  compared 
with  that  upon  capital  proper. 

Again,  the  Assessor's  claim  involves  a  repeated  taxation  upon  the 
aame  capital.  The  money  borrowed  by  the  banker  is  borrowed,  say  from 
another  banker,  who  pays  the  tax  upon  it  as  a  part  of  his  capital ;  or  it 
is  borrowed  from  a  bank  which  pays  upon  it  the  usual  tax  imposed  on 
deposits/  The  banker  borrows  it,  say  at  6  per  cent,  and  lends  it  agun  to 
a  second  party,  say  at  6  per  cent,  who  also  has  to  pay  the  tax ;  the  second 
borrower  *pays  the  money  in  liquidation  of  the  claim  of  yet  another 
banker,  who  again  lends  the  money,  the  receiver  being  required  to  pay 
the  tax.  These  repeated  transfers  may  occur  within  two  or  three  days, 
the  same  actual  capital  being  assessed  each  time  it  changes  hands;  at 
which  rate  it  would  be  compelled  to  pay  1  per  cent  in  everj  twentyfoar 
days,  and  18  per  cent  per  annum.  Under  such  a  system  as  this,  tem- 
porary loans  would  be  banished  from  Wall  street  usage ;  and  bankers, 
to  obviate  the  repitition  of  such  a  ruinous  impost,  would  be  compelled 
to  borrow  for  long  periods,  with  consequent  inconvenience  to  themselves 
and  increased  risk  to  lenders. 

Moreover,  if  all  the  capital  a  banker  employs  in  his  business  is  to  be 
■ubjected  to  this  tax,  his  deposits  must  be  included  in  tbe  liability,  in 
addition  to  the  tax  specifically  charged  upon  tbem ;  and  we  are  at  a 
loss  to  conceive  why,  upon  the  Assessor's  construction  of  the  law,  be 
has  overlooked  this  important  mine  of  revenue. 

This  extrMordin%ry  claim  needs  but  to  be  examined  to  show  its 
preposterous  and  utterly  untenable  cbaractt^r.  lis  enforcement  would 
inv<ilve,J|to  a  large  extent,  the  suspension  of  banking,  and  the  injurious 
limiiHtion  of  credits  in  the  larger  h'nancial  operations  of  (he  country* 
Tbe  !»nr|)l*is  capiUil  which  always  gravitates  to  this  centre  and  finds  here 
tem|>niHrary  employment  in  rapid  transfers  leaving  but  a  fractional  per 
centage  of  proHt,  yet  keeping  the  whole  financial  machinery  in  active 


1669]  OVR  HATIONAL  BAVK  BTBTSM.  1S7 

motion  and  Bustaining  Talaee,  would  under  Bucb  au  impost  remain 
BtagDant,  depressing  the  rate  of  interest  and  .repressing  the  spirit  of 
enterprise  ererywhere*  Whatever  tends  to  prevent  capital  from  passing 
ioto  the  hands  of  another  who  can  use  it  to  better  advantage  than  its 
present  holder  tends  also  to  limit  its  productiveness,  to  the  serious 
detriment  of  the  whole  network  of  national  interests. 

We  have  little  doubt  that  the  Assessor  finds  in  his  district  many 
a'.tempts  to  evade  the  payment  of  the  legal  tax  upon  bankin  g  capital ; 
and  with  such  cases  he  is  justified  in  dealing  according  to  the  powers 
iorested  in  him  by  law.  But  unjust  returns  afford  no  excuse  for  an 
attempt  to  exact  taxes  which  have  no  warrant  in  a  fair  construction  of 
law,  and  which,  moreover,  are  opposed  to  common  sense  and  justice* 
The  case  has  been  referred  to  Commissioner  Rollins  by  the  board  of 
brokers;  but  the  Assessor,  instead  of  awaiting  the  decision  of  his 
superior  in  office,  is  embarrassing  the  tax-payers  by  demanding  the 
Borrender  of  their  books  and  papers  for  examination.  Mr.  Webster's 
action  is  a  fair  illustration  of  that  official  disregard  of  the  public  con* 
veuienco  and  that  zeal  for  forcing  a  construction  of  the  law  against  the 
interests  of  the  tax  payers  which  ,in  all  countries  have,  sooner  or  later, 
made  taxation  odious. 


OUE  NATIONAL  BANI  8T8TBH. 

So  far  as  their  statistics  are  published,  the  quarterly  statements  of  our 
National  Banks  for  the  first  Monday  in  January  offer,  on  the  whole,  a 
Batii>faotory  view  of  the  position  of  these  institutions.  The  most  promi- 
nent question  before  the  public  in  regard  to  our  banks  refer  to  the  ade- 
qnac>  of  their  reserves.  The  law  requires  that  all  banks  situated  outside 
of  the  great  financial  centres  shall  protect  their  liabilities  by  a  reserve  of 
fifteen  per  cent.  The  banks  to  which  this  rule  applies  are  1,408  in  number. 
Their  liabilities  amount  to  406  millions,  so  that  the  reserve  required 
would  be  61  millions.  The  banks  actually  hold  93  millions,  or  fifty  per 
cent  more  than  the  lawful  minimum.  Turning  now  to  the  banks  in  the 
fifteen  principal  cities,  exclusive  of  New  York,  we  find  that  the  164  banks 
have  liabilities  to  protect  amounting  to  220  millions.  Their  reserves  as 
required  by  law  must  be  twenty-five  per  cent  on  this  sum,  or  55  millions. 
The  re^^rves  actually  held  amount  to  71  millions,  and  are  consequently 
almost  t'lirty  per  cent  in  excess.  Lastly,  we  come  to  our  New  York  city 
banks,  which  are  fifty  six  in  number,  having  liabilities  of  208  millions, 
requiring  twenty-five  per  cent  in  legal  tenders,  or  52  millions,  as  the 
ag^rregHte  of  protecting  reserves.  Our  banks  actually  hold  71  millions, 
or  thirty  five  per  cent  more  than  is  demanded. 

L)  tbeie  compendious  statbtics  there  is  abundant  evidence   to  support 


ouK  vinoKAL  BAKK  grnxM.  [I^ebntatf, 

sition  that  the  Buikiog  Bjstem  establwhod  undfir  our  national  cm- 
«w  is  stable  and  firm,  and  thai  it  fulSlIa  its  deaign  of  giring  m  an 
Kd  chain  of  Banking  inalitutions  wboae  aoinidiicaa  and  toWeooj 
mpara  ftvorablr  witb  those  of  anj  other  countty  in  tha  worid.  The 
of  the  report  are  tummarized  as  fellovs : 


■  ^^t:! 


tlifir.  aa'Mt  7.im«i  iaiia.si  iii-ii 


mm  iUk  i  i 

...M  n.iMkmi n.^.m  i,t3&» mbuh s)«!'n  MiunstiMa  did 

...   1  ttMi.ta  Kti-Jtt  ixt.m  *i.i>t  •«/«  WKxi  ui;.M*  mmi 

...  »i  *;.«;,*;»  11. ■»>>»  ».«ij;«  o^xraa^M  u«;.itiisja,ni  MM* 

1«     15,W,m    l.i;.«.S    IJr.  KB!  lact    '.UIM    l.-^iM    I.IIKI.I    ll»l* 

w  lU^M  tnvrti  1 

;:'.!:;!:"  1  ira'm   wan 

t   i.iuit    iMja 

•     T.J-M.T    1*1*.  »    1 

.!!:!!!!."!  11  ij*:i.*ti  tx^.'M!  ijaKw  «3"  ^iw  s.^wT*!  iSf*^  STS 

«    tfi*^i  i^n.st     (ii.'n  i.«t  UB.'M     MTjas  i,ab..'i)  nMI 

s   v».at    <s».i>«    MI.H7  iwrt  jaj»    ijtm    tiiji*  "">-[• 

■  ujKni  ucKt  Lftr.jta  iiiiH  mjf     m^^  nxat  **■■* 

1        MUU      MIJN       US.4<t  l.'M     IMM        (U^       UlIMa    M»-l* 

Minu£mKMUMKNfcTasn«ii»*NNti#TtM'n^i^H  am 


1869]  TBI  BOVTR  AVD  TBS  HKZT  OOTTOH  CROP.  139 

We  regret  that  the  reports  before  ns  have  not  been  made  out  by  the 
Comptrollerin  80chaformas  to  show  the  aggregate  circulation  side  by 
side  with  the  other  statistics.  There  is,  however,  this  reason  for  their 
preseutform  :  The  public  interest  has  heretofore  centred  more  in  the  sol* 
Tency  of  the  Banking  institutions  •  than  in  their  efficiency  as  issuers  of 
currency.  The  controversies  which  have  arisen  as  to  the  unequal  dis* 
tribation  of  the  circulation  are  however  assuming  an  activity  which 
threatens  to  eclipse  fo*  a  time  all  the  other  topics  of  banking  importance. 
These  difficulties  we  hope  will  be  adjusted  without  any  attempt  to  increase 
the  circulation  of  the  banks  beyond  the  800  millions  authorized  in  the 
kw. 

We  have  assumed  in  this  article  that  the  sworn  statements  of  the 
hanks,  from  which  are  taken  the  figures  we  have  cited,  are  faithful  and 
impartiftl  records  of  their  average  condition.  This  is  not  strictly 
so.  The  banks  are  known  to  *^  prepare "  f^r  the  quarterly  statements. 
Hist  i;,  they  take  care  to  have  a  strong  statement  to  show,  and  they  gather 
in  greenbacks  and  make  other  dispositions  of  their  assets  so  as  to  aocom* 
plish  the  purpose  in  view. 

How  far  this  abuse  might  tend  to  give  a  false  impression  of  the  post* 
tion  of  the  banks  we  have  often  pointed  out.  The  broad  margin  of  excess 
in  the  reserves  of  some  of  the  banks  may  be  due  in  some  measure  to  this 
csQse.  But  there  is  still  ample  evidence  of  the  strength  of  our  banks,  as 
Mr.  Hulburd,  the  Comptroller,  assures  us.  Congress,  we  trust,  will  adopt 
the  suggestion  we  have  often  made,  and  prevent  the  banks  from  ^  pre- 
ptring**  for  their  quarterly  statement,  by  requiring  it  always  to  be  made 
for  s  past  day,  just  as  was  formerly  done  under  our  New  York  State  bank 
tystem.  If  the  banks  do  not  know  beforehand  for  which  day  their  state* 
ments  will  be  required,  they  will  be  under  constant  pressure  to  keep 
their  business  in  a  sound,  equable  condition,  and  the  average  state  of  the 
hanks  will  much  more   nearly  correspond  with  the  report 


^0*0^^^^^^t0^0^0^0mm 


THB  80DTI  AND  THE  NEXT  COTTON  CROP. 

The  approach  of  the  planting  season  in  the  South,  and  the  policy  to  be 
punned  with  regard  to  the  next  crop,  are  matters  of  more  than  local  inter- 
^  In  fact  to  the  whole  community.  North  and  South,  everything  con« 
B^eted  with  the  cotton  crop  of  1869  is  a  subject  of  the  highest  imporUnoe. 
l^or  is  this  interest  confined  to  our  own  country.  The  cotton  manufao* 
tarers  and  consumers  of  Europe  and  the  cotton  producers  in  India, 
"^pti  and  other  places  will  find  their  industry  seriously  afleoted  for  good 
or  ill  hj  the  proiq>ects  and  results  of  the  ooming  season.    ^  King  Cot- 


140  THS  SOUTH  AND  TBM  NiZT  OOTTOBT  CROP.        \Fihmaryt 

ton,"  for  a  dethroned  mooarob,  still  exercises  a  decided  and  positive 
influence  in  the  world ;  and  this  influence  seems  to  be  inoressing  rather 
than  diminishing.  At  no  former  period  have  the  prospects  of  this  staple 
elicited  a  deeper  or  more  general  concern. 

The  action,  therefore,  of  the  South  Jn  reference  to  the  new  crop  is  of 
the  first  importance.  No  backward  step  should  be  taken,  but  the  same 
intelligent  course  which  has  produced  such  remarkable  results  the  past 
year  should  be  continued  the  coming  season.  It  has  abundantly  demon* 
strikted  the  vitality  of  the  South  and  the  possibility  of  raising  cotton 
more  successfully  by  freed  labor  than  by  slave  labor.  All  that  is  needed 
now  is  that  the  lessons  of  the  past  three  years  be  not  lost,  in  order  that 
the  South  may  retain  the  vantage  ground  it  has  gained,  and  enter  upon  a 
new  career  of  social  and  industrial  development  and  prosperity. 

At  the  close  of  the  civil  war  the  single  element  of  labor  was  about  the 
only  means  remaining  in  the  South  of  recovery  from  the  industrial  pros- 
tration in  which  that  section  was  left.  But  even  this  resource  was  sadly 
deficient.  The  freedmen  were  badly  demoralized,  insubordinate  and  pre- 
tentious ;  and,  at  the  same  time,  the  white  population  was  exhausted, 
angry  and  jealous.  All  classes  were  utterly  broken  down  in  spirit,  while 
there  was  no  money  or  cr^idit  anywhere.  In  this  extremity  the  planters 
turned  to  cotton  as  their  only  hope.  Prices  had  been  high,  and  it  wss 
thought  that  they  would  continue  so,  and  on  the  basis  of  the  then  ruling 
rates  contracts  were  entered  into  and  plans  ma^le  for  the  year.  It  is 
scarcely  necessary  to  repeat  the  disasters  of  that  and  the  succeeding 
seasons.  The  result  of  the  poiicy  pursuea  was,  tnai^  auring  the  winter 
of  1867,  a  cry  of  famine  arose  from  the  most  fertile  districts  of  the  world, 
and  the  little  remnant  the  war  had  led  appeared  to  have  been  lost. 
Relief  was  sent,  and  the  danger  passed  away,  leaving  a  severe  experience, 
which  has  resulted  however  in  the  greatest  good  to  that  section  of  our 
country ;  enabling  them,  in  fact,  to  raise  a  crop  of  cotton  at  about  ten  cents 
per  pound,  and  to  sell  it  at  more  than  twenty  cents.  Over  two  hundred 
and  fifty  millions  of  dollars  will  pass  into  the  South  from  cotton  alone 
this  season,  placing  the  planters  in  a  position  of  comparative  independence. 

In  tracing  the  causes  of  the  success  of  1868,  as  contrasted  with  the 
disasters  of  the  preceding  years,  we  find  the  clearest  indications  of  what 
should  be  the  policy  of  the  South  in  the  immediate  future.  Failure  at 
first  was  not  the  result  of  deficient  crops,  but  rather  of  the  acts  of  the 
freedmen  and  the  planters  themselves.  Capital,  to  be  sure,  was  shy  and 
distrustful,  and  could  only  be  obtained  with  difficulty  and  at  high  rates 
of  interest  or  on  extremely  unfavorable  terms.  Labor  also  was  demor- 
alized.  In  very  many  cases  the  freedmen,  having  newly  tasted  the  sweets 
of  liberty,  refused  to  work,  or,  if  they  worked  it  was  with  a  great  lack  of 


1869]  TDK  SOUTH  AHD  TBI   KXXT  COTtOff  OBOP.  141 

energy  and  efficiency.  They  could  not  see  the  necessity  for  work,  and  it 
required  the  bitter  hardships  of  the  winters  of  1866-67  to  bring  them 
to  their  senses.  The  planters,  too,  needed  a  certain  kind  of  experience. 
They  bad  seen  cotton  at  high  pi  ices  for  a  long  time  and  concluded  it 
was  to  remain  so.  Consequently  they  bid  high  for  labor  and  put  into 
the  ground  nothing  but  cotton.  When,  however,  they  began'  to  market 
the  staple,  as  prices  had  fallen  to  a  decidedly  lower  level,  it  was  found 
that  it  did  not  return  them  the  cost  of  raising  it.  Corn  and  wheat  they 
had  neglected,  and  it  was  the  bitter  experience  they  then  passed  through 
as  a  consequence  of  this  neglect  which  showed  them  its  folly  and  led 
them  to  a  wiser  course  the  past  season .  Thus  suffering  and  an  iden- 
tity of  interests  brought  all  classes  together  as  they  never  before  had 
been,  showing  the  freedman  if  he  would  eat  he  must  work,  and  the 
planter  that  he  could  not  depend  upon  exorbitant  figures,  but  must  hire 
his  labor  so  that  he  could  raise  his  crop  at  a  reasonable  figure,  and  must 
give  up  a  portion  of  his  time  and  land  to  food  products.  If  this  crop  of 
cotton  had  cost  as  much  as  the  previous  ones,  or  if  the  South  had  raised 
2H>  food,  they  would  have  been  compelled  to  force  the  staple  upon  the 
market  to  get  themselves  out  of  debt  or  to  provide  the  necessities  of  life, 
and  very  little  benefit  would  have  resulted  to  them  from  the  improved 
rates.  On  the  contrary,  the  planter  is  now  clearing  over  ten  cents  per 
ponndi  and  the  South  is  making  millions  of  dollars,  placing  them,  as  we 
have  before  stated,  in  a  position  of  great  strength  for  the  new  year. 

We  have,  then,  in  the  experience  of  the  past,  an  unmistakable  indi- 
cation of  the  course  that  should  be  pursued  by  the  South  in  order  that 
the  advantages  she  now  possesses  may  be  maintained.  First,  then,  it  is  of 
the  highest  importance  that  the  planter  should  not  be  led  by  present 
prices  to  contract  with  the  freedmen  at  exorbitant  rates.  The  crop  must 
be  Riised  economically  and  cheaply,  for  there  is  no  wisdom  in  supposing 
that  it  can  be  marketed  except  at  a  figure  very  much  below  present  quo* 
tations.  It  must  be  remembered  that  the  prices  now  obtained  act  as  a 
premium  for  the  cultivation  of  cotton  throughout  the  whole  world. 
Largely  increased  supplies  are  likely,  under  this  stimulus,  to  be  raised  in 
India,  Egypt,  Brazil,  and  other  places,  and  although  the  consumption  is 
steadily  increasing,  a  decided  reduction  in  the  rates  must  be  the  result 
of  this  eager  competition  in  production.  We  notice  that  there  is  some 
indisposition  among  the  freedmen  to  contract  for  last  year's  wages. 
This  is  right  where  he  is  worth  more ;  but  for  the  planter  to  agree  now  to 
pay  an  exorbitant  rate,  just  because  cotton  at  the  moment  is  high,  would 
be  only  to  ensure  for  both  parties  disappointment  and  loss — in  fact,  to 
cheek  the  prosperity  which  the  past  year  has  begun  to  develop  through- 
oat  the  Sottih.    Then,  again,  it  is  of  the  greatest  importance  that  as 


242  TOHITKL  IIAH.I10AD8  »0R  H»W  TORE.  [FSkrUOry^ 

much  wheat  and  corn  and  provUiona  be  planted  as  wag  planted  the  pMt 
year.  It  is  desirable  that  cotton  should  be  the  leading,  but  not  the  only 
production.  A  disregard  of  this  idea  was  the  error  of  the  first  years 
after  the  war,  and  short  breadBtufi*  crops  in  Europe  put  up  the  prices 
of  corn  and  wheat  to  fi^rures  which  resulted  in  the  fearful  dUtress  of  the 

winter  of  1867-8.  ......*.    .ku 

We  think  a  little  caution  now  on  these  points  would  be  of  inesUmaoie 
value  to  the  South  for  years  to  come.  Not  that  we  desire  a  small  crop 
of  cotton  to  be  raised,— foi  we  believe  the  true  interesu  of  the  cotton 
SUtes  demand  a  large  crop  antl  low  prices,  which  will  drive  out  competi- 
tion— but  simply  that  the  greatest  economy  in  production  be  used,  no 
contract  for  labor  ba^ed  on  present  rates  for  cotton  be  made,  and  a 
sufficient  supply  of  food  products  be  put  in  to  make  that  section  indepen- 
dent  of  others  for  their  daily  bread.  The  observance  of  these  precau- 
tions will  ensure  a  prosperous  year  tor  the  South,  and  do  much  towards 
imparting  activity  to  the  industries  of  the  whole  chantry. 


TDRNEL  RAILROADS  FOR  NEW  TORI. 

Until  within  the  past  few  weeks,  it  was  generally  believed  that  the 
work  of  tunneling  Manhattan  Island,  for  the  purpose  of  establishing 
underground  railway  communication  between  the  different  sections  of  the 
city,  was  soon  to  be  begun.  The  charter  granted  by  the  laH  Legislature 
to  a  company  formed  "for  that  purpose,  conferred  the  necessary  authority 
to  undertake  the  work;  and  as  the  corporators  were  well  known  as 
responsible  and  wealtliy  citizens,  it  was  confidently  predicted  that  the 
work  would  be  fairly  inauj^urated  before  the  close  of  1868.  It  appear?, 
however  ,  that  in  the  enabling  actthere  were  several  unnecessary  condi- 
tions and  resiiictions,  which  prevented  the  complete  organiaation  of  the 
company,  so  that  the  act  itself  was  allowed  to  expire  by  limiution  on 
the  first  of  January.  The  subject,  however,  is  again  before  the  Legisla- 
ture, in  the  form  of  an  application  for  an  extension  of  the  charter,  unre- 
stricted  by  those  conditions  with  which  the  organizers  of  the  original 
company — thouiih  we  believe  acting  in  good  faith  and  with  a  deterrnina* 
tion  to  carry  the  undertaking  through — fonnd  it  impossible  to  comply. 
In  view  o£  the  great  value  of  such  a  work  to  both  city  and  Scate,  the 
Legislature  should  promptly  grant  the  request  ihus  made,  or  adopt  at 
once  some  better  plan  for  an  under^irround  road,  so  that  the  work  may 
be  bej^un  and  completed  as  rapidly  as  circumstances  will  permit. 

It  is  impossible  to  over-esiimate  the  importance  of  this  long  needed 
improvement.  We  have  frequently  referred  to  it  in  these  columns,  but 
it  is  a  subject  of  such  vital  interest,  not  only  to  the  residents  of  the  city 
but  to  tne  commerce  of  the  whole  country,  that  it  cannot  receive  too 
frequent  attention.  As  a  means  simply  of  rapid  transportation  of  pss* 
sengers  between  New  York  and  its  outlying  suburbs,  it  is  becoming 
almost  indispensible.  The  necessarily  slow  rate  of  speed  permitted  on 
sur^ce  roads,  renders  a  passage  of  even  a  few  miles  a  tedious  and  diss* 


1889]  TVtfHXL  RAIUtOADS  YOa  HSW  TORE.  143 

greetUe  ride ;  {and  in  consequeDoe  of  the  time  lost  in  going  back  and 
forth,  manj  are  cot  off  from  the  )*rivi]eges  and  advantages  whicli  the 
better  air  and  cheaper  reota  of  the  outskirts  of  the  city  afford.  TJiis, 
perhaps  especiallj  affects  the  laboring  classes,  whose  necessarily  early 
Boors  require  them  to  spend  the  least  time  possil)Ie  in  going  to  and 
from  their  homes.  Hence  they  are  compelled  to  seek  accommodations 
where  they  are  scarce  and  rents  are  high,  and  where  their  children  are 
sorrouDded  by  associations  debasing  and  ruinous.  But  aside  from  the 
moral  aspect  of  the  question — which  is  by  no  means  to  be  overlooked 
or  forgotten — the  deprivations  suffered  in  being  cut  off  from  low  rents 
is  very  seriona,  and  in  fact  reacts  very  seriously  on  every  branch  of 
bosioess  into  which  their  labor  enters ;  for  the  increase  in  the  cost  of 
living  must  really  be  paid  by  the  employer.  Besides,  under  existing 
arrangements,  an  equally  burdensome  tax,  as  we  have  already  stated, 
is  laid  en  the  time  and  comfort  of  the  entire  community,  making  evident  to 
the  minds  of  all  that  the  present  mode  of  transit  is  totally  inadequate 
to  the  requirements  of  this  rapidly  expanding  city. 

But  this  is  merely  a  local  view  of  the  advantages  of  the  tunnel  road. 
The  commerce  of  the  whole  State,  and,  in  fact,  of  the  whole  country,  is 
directly  interested  in  the  completion  ot  this  great  public  improvement. 
It  is  unnecessary  to  dwell  upon  the  importance  of  New  York  to  the 
commerce  of  the  State  and  country.  The  vanit  trade  that  has  centered 
here  the  volume  of  produce  which  is  daily  brought  to  our  wharves  from 
We»tand  South,  to  be  distributed  to  all  parts  of  the  world,  eufBciently 
indicate  this  importance.  Now,  however,  all  this  freight,  or  all  that  is 
brought  overland — and  the  proportion  thus  carried  is  increasing  every 
jear — must  be  carted  through  the  city  and  trans  shipped  once  or  twice, 
raakiog  the  cost  of  transferring  merchandise  from  one  side  of  tlie  city  to 
the  other  about  as  great  as  the  freight  charges  from  Buffalo  to  New 
York.  Uow  easily  and  quickly  a  tunnel  road  would  change  all  this.  As 
sooD  as  a  central  tunnel  is  constructed  through  the  entire  length  of  the 
eity,  braach  tunnels  will  be  added,  a  bridge  suspended  over  the  Hudson 
Ri?er,  by  which  all  the  main  lines  of  travel  and  freight  transportation 
may  be  brought  to  Manhattan  Island,  and  the  freight  thus  collected 
be  sent  rapidly  and  cheaply,  without  breaking  bulk,  ttirough  the  city  to 
the  wharves  along  our  river  fronts.  All  this  would  necessarily  and 
materially  diminish  the  cost  of  transportation,  benefitting  the  producer 
aod  consumer  equally,  and  thus  materially  increasing  the  volume  or  freight 
flowing  through  New  York — which  the  lower  rates  would  attract — 
SDd  benefitting  our  canals  and  railways. 

There  is  also  every  reason  to  believe  that  such  a  tunnel  road  will  be 
constructed  as  soou  as  the  Legislature  grants  the  proper  charter  rights 
&od  privileges.  There  are  no  good  grounds  for  supposing  that  the  work, 
if  properly  undertaken,  could  not  be  carried  through  and  made  completely 
BoccessfuL  It  is  true  that  the  peculiar  topography  of  the  island,  includ- 
ing the  vein  of  quicksand  extending  from  Worth  to  Canal  streets,  the 
low,  wet,  marshy  section  immediately  north  of  it,  and  the  hills  of  solid 
rock  that  extend  from  Thirtieth  street  to  Fort  George  and  Washington 
Heights,  present  many  engineering  difficulties  that  will  only  be  overcome 
at  considerable  expense  of  money  and  labor ;  bat  they  are  by  no  means 
iosttrmountable.  The  necessary  energy  and  capital  can  and  will  be  pro* 
Tided  as  soon  as  legislation  is  obtained  authorizing  the  work. 


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1869]  PUBUO  DBBT  07  THB  UBriTBD   STATES.  151 

PUBLIC  DBBT  OF  TIB  UNITED   STATKS. 

Abstract  statemeDt,  as  appears  from  the  books  and  Treasurer  retaros  in  the 
Treasary  Department,  on  the  1st  of  January,  and  1st  of  Febraary,  1 869 : 

Janiia«^7l.       February  1.        Increase.      Deeieaae 

I  ptreent  bond* $321,589,800  00  $321.58U,8uO  00      $ $ 

•     •'      18S1 «a,6n,400  00    283,6i  7,400  OO         

•      ^        (&>S(rs) 1,602,568,660  00  1,602,68S,850  00        14,700  00  


TMal 8,107,885,880  00  8,107,890,050  00        14,700  00 

DIBT  BBABIirO  OUBimiCT  IXTIKBST. 

f  peret.  (RR)  bonds $50,097,000  00    $52,017,000  00  $1,990,000  00 

3  p.  cent.  certiUcates 65,865,000  00      57,410,000  00    1,616.000  00 

lUTy  Pen.  F-d  8  p.G 14,000,000  00       14,000,000  00  


Total 119,962,000  00     188,4-17,000  00  8,466,000  00       $ 

1U.TUBBD  DKBT  HOT  FBBSINTBD  rOB  PATXMNT. 

1V65...  T? $8,174,90000     $1,977,180  00$ $197,750  00 

ip.ccomp.lnt.  notes  matMJone  10, 

July  16*  Ang.  15  Oct  15,  0ec  l^, 

1867,  May  15,  Ai  g.  1,  t^ept.  1 A 16, 

and  Oct.  1  A  IS.  U»d       8,879,99000       8,699,170  00      979,180  00 

B*ds  of  Texas  IndHy S&6.»0  00  856,000  00      

Treasury  notes  (old) 148,66164  148,41164      160  00 

Fdsof  Apr.  16,  1818,  Jan.  88, 1847  A 

Mar.Sl,  184S 849,960  00  878,400  00      71,650  00 

Treas.naofMa.8,B8 44%4^  00  446,498  00      

Ttmpocary  loan 197,810  00  10ii,»13  00      8.997  00 

CcrttS.onndebt*eBB 18,000  00  18,000  00      

Total 7,463,606  64       6,910,986  64    $ $662,667  00 

DBBT  BBABmO  BO  INTBBXST. 

Uoited  Statos  notes $866,0il.078  00  $856,031,078  00      $ $ 

FraeUonai  cnrrency 84,816,716  64      85,.M1,187  64    1,«9\411  90        

Goidcerti.ordeposlt 87,086,0i0  00       88,659,580  00  5,6:t3,5CU  00         


Total   417,878,808  64     484,101,180  54   6,918,91190      $. 

BBCAnTmoATlOV. 


$    $     _„      $_.        $ 


BearlBj^coin  taterest S,107,88-,850  00  8,107,860,05000  14.7U0  00 

Beazisgcor'ylnterest. 1I9,M>8,000  00     138.427,000  00  8,465,000  00  

Xataredd«;bt  7,408,503  64         6.^«1093664      668,567  00 

Bearing  no  interest 417,i78,8u8  64     484,191,780  54  6,918,91190 


I  •  «  •      •  •  • 


Ag^ente 8,658,53:3,861 8S  8,6«1,  n9,70   18  9,&itf,0U  90      

Coinfcnr.inTreas Ill,88i>,i61  US     106,174,01910        ..  6,66;,41t  98 

Debt  less   coin  and  cnneney 8,540,707,801  86  8,656,806,668  08  ir,498,45G  S3     

The  following  statement  Bbowa  the  amoo  at  of  coin  and  currency  separately  at 

ih«  dates  in  the  foregoing  table : 

com  ABB  OUBBBBCT  IB  TBBASUBT. 

Cola $98,768,869  91     |«8,78i,716  44         $10,030,658  47 

Cnneney... 18,061,092  li       17,44,338  66  4,878,840  64       

Tout  coin  *CDr*cy 111,826,46103     1(j6,174,049  10      6,658  41193 

lh<f  annual  iole:cst  payuble  oo  the  debt,  as  existing  January  1,  and  Feb- 
iuijf  1,  h€9,  compares  us  fullowt»' 

A.NMUAL  IBTBBIST  PATABLB  ON   PUBLIC  DKBT. 

January  1.      February  1.         Icicreaae.  Decrease 

urfa-6  per  cents $ll,079,'46>  00  $il,07«.4oj  00       $ $ 

••      6    ••     lo8l 17,080,64100      17,080,614  00  

"      «    "     C5-80's) 96,164,11900      9tt,145,' 01  00  88100  

Total  coin  taterest $184,851,888  UO  $131.85%  au  00  $888  00        

tt«rrwqr-S  pet  cents $3,005,880  00     $8,381,0i0  00      115,800  00        

S        *'        8,095,95000       8,14^,800  00         4tf.350  00         

Total cure&cylnter*i. $5,101.770  00    $a,8S8,88o'oO   $161,650  00        $ 


112 


TRAOI   07   GREAT  BRTTAIir. 


\Februtujf 


TRADE  OF  SUAT  BRITAIN. 

Aonezed  ia  a  BtatPineDt  showing  the  ezportf  of  the  priodpal  dtftcripions  of  colooial 
aod  foreign  prodace  to  the  Uoited  States  daring  the  ele?eo  months  ending  Noyem- 
bcr  80, 1868,  compared  with  the  corresponding  period  m  1867  aod  1866  : 


Alkali,  cwt.... 1,630,858 

Beer  &  ale.  bbla.  H,THI 

Coals.  t«ms   ..  181,210 

CoTTOM  Makutaotubis: 

Piece  roods,  ydi. 102,194.889 

Thrcad,lb 1.80e,J»l 

£arth  iiware  and  Porcelain  pkfiEB I19,7i)0 

Baberdaeh^ryan  I  Mililoery  Taloe £1,0A140 

Hardwahx  akd  Cutlsbt  : 

Knir  a.  lorks.  Ac,  Tttlne       .     £SF4,800 

AiiTii0,  vi<e0,  saws  Ac,  ralne 9S,*>99 

MaonlSictnres  of  German  silver,  TSloe. 66»,757 

Liimr  MANVPAOTTnun : 

Piece  Kood,  yds 100,67A,084 

Tbread ^ i,86i,00l 

HXTALS— 

Iron— PIflr,  Ac.,  toss 83,678 

Bar.  Ac,  toos.  61,(»60 

Railroad,  tons 86,814 

Castings,  tons 1,516 

Hoops,  sheets  and  boiler  plates  tons S&v87 

Wroaght,tons 9,978 

Steel  Unwroiubt,  Ions 19.7S<9 

Copper,  wrought  cwts 9,388 

Lead,  pig,  Ac  ,  tons 8,!*'.4 

TId  plattrs,  cwts ; 1,025,077 

Oilseed,galls S,8i6,667 

Salt,  tons 155,094 

Bilk  Mamutacturbs— 

Broad  piece  floods,  Ac,  yards 687,167 

Handkerchiefs,  tcrfli.  Ac,  dosoDS 6/ili 

Rlbbonsof»lla  onl.lbs 86,8il 

Other  articles  of  silk  cnly,  ralne £9t.84i 

^  Ilk  manaf's  mixed  wi.h  other  matenila. £7^108 

Snirlto,  British,  gals 148,»07 

Wool.lbs 180,640 

WoOLElff  AMD  WOBSTXD  MAMUfACTUIUIS— 

Cloth  Of  all  ki  ids,  yards 4,^08,000 

Carpets  and  druffgets,  yards ....  4,883,f76 

Shawls,  rags,  Ac,  iinmher 


1,884.  00 

17.0:20 

Ii5,li8 


1868. 
1,449.568 
17.180 
99,498 


88.088,741    68,806,968 
1.800,97 )      1  a00,5ST 


91,970 
8:9,90b 

£214,408 

0),0«1 

458,9U6 

80081,7« 
1,998,266 

114,971 

41,«4 

157,836 

1,159 

98  991 

6,668 

17,715 

8.^68 

6,W7 


81988 
667,891 

£151,419 

80.747 

834,158 

76,548,414 
1,908,879 

88,101 

8^789 

946,946 

1,108 
1S,S(4 

4,978 
14,989 

9,016 

6.A91 


1,008,288     1,164.468 


1,828,411 
1L8.6U0 

824,806 
9,^81 
1\018 
41,4H 
74.887 
(9,126 
11,666 

8,14A,958 
8,53M17 
110.646 


167,S!M 
149,783 

8SO,000 
1,986 

10,260 
109,8r;8 

78.400 
199.186 
419,690 

9,847,166 


182.88 
Worsted  stnAar    waiftcoitings,  yards 70,6SO,6<<7   48,340,896   66,850,75^ 

Although  CO  tctifity  ha<  been  apparent,  there  baa  been  more  firmness  in  the 
trade  fcr  wheat  this  week,  and  pricei  ha?e  improved— £i!glish  prodace  having  ad- 
vanced If.  to  Ss.,  and  foreign  abont  Is.  per  quarter.  Millerr,  however,  do  not  ap- 
pear to  be  dispoied  to  operate  with  anj  degree  of  freedom,  and  hence,  notwith- 
standing that  prices  have  advanced,  tales  have  progressed  slowly,  and  no  great 
amount  of  bu«ineM  has  been  transacted.  The  fall  of  rain  in  December  was  rerj 
heavy,  and  in  spite  of  the  protracted  drought  during  the  summer  months,  the 
rain-f^ll  in  1868  was  heavier  than  that  of  1867.  This  year  the  fall  of  rain  has 
already  been  considerable  ;  *wnt  the  accounts  from  the  agricultural  districts,  respect- 
ing the  condition  of  the  winter  wheat  plsnt,  are  ve  y  favorable.  In  most  districts 
the  wheat  ia  hesliby  and  atronc,  and  bids  f.iir  to  lesd  to  an  encouragio;  result  TSe 
impoits  of  wbcat  in  November  were  2,847,S86  cwt.,  aga:nst  8,909,760  cwt.  in  <bs 
e  trres ponding  month  in  18tt7,  and  1,995,106  cwt.  in  1866.  lo  the  eleven  months 
the  imports  of  wheat  an  i  flonr  were  as  follows  : 


1888. 

Rnss*a cwt.  ..    7.786,907 

Prassia 8,770,641 

r ranee ••.«    ..••«        ••*.        ■  ..          ••■  ••>•  s,w  4,o!fS 

Illyria,  Croatia  and  Dain  atla 1,809,267 

•l^rkey,  WallachlaAMoldd%U 426,494 

Bgjpt 89,648 

UnttedSUtea 475,448 

ChUi 905,848 


Total,  indnding  other  coont*  ics . . . 


••• ••••.. 


90,647,088 


1881. 

1988. 

18,186,691 

^jm:m 

6,999,779 

4.004  8B6 

686.924 

4498>l 

4S8.876 

089,614 

9,044,970 

a,(no,ii8 

1,184,  '96 

8,178,675 

M18  860 

6,513.613 

1,906,418 

1,8U9.57S 

80,feT7,998 


80,6:9.498 


k 


18691 


TRADB  OF   GREAT  BRRAXir. 


158 


HtM«TofWDB 877.754 

Fnoce 8,  80,583 

UnitedSUtM 819,418 


391781 

l.Hlfl  841 
892J74 


591,816 
6«8,111 
683.400 


TottltfododiogoUieroooDtricft « 4,003,138  8.040,850  S,7dl,468 

The  following  ia  the  official  statement  of  importa  from  the  let  of  September  to 
the  dJie  of  NoTombcr  in  each  ot  the  three  la«  t  aeason* : 

Wbeat Cwt. 

Flour •••  ...•••. 

Barey .     .... 

Qst> 

PeM 

BMOS  ....  ......a. .......•••......,...  .... 

IndUacofn • 


186Rb 

18fi7. 

3868. 

6,017,739 

9,816,-276 

7,763,a28 

76^,485 

77i,-18 

94<  1,090 

8,370.448 

1,«««.5,6 

8,H4J,8i6 

l,8d9,R51 

s.oaMis 

1,870,407 

]10,tl25 

ISOSOi 

3:^^,251 

63«',875 

en  6  « 

9*5,875 

8,4«6,d43 

1,557.1(13 

8,968,555 

The  highcet  aTeraga  for  Engliah  wbeat  last  year  was  for  the  weeks  endios;  April  25 
and  Hay  9,  in  both  of  which  weeks  it  was  74s.  7d.  per  quarter.  Last  w<>ek  it  waa 
5Ca.  6  J.,  so  that  a  fall  of  849.  has  taken  place. 

The  annexed  stA'emeot  shows  the  magnitude  of  our  imports  of  cereals  in  December 
sod  dunasg  the  twelve  months  ending  December  81.  It  may,  however,  be  observed 
thai  so  far  as  'aat  year  ia  concerned,  the  December  statement  embraces  a  period  of 
oalySSdaya: 

XXP  >BTS  VK  DIOIHBSB. 

1865. 

▼Iwtt cwt 8,40i,«^ 

Btr!ef 718,4«1 

CW 72«,«*8 

Pesi 801,767 

Bant ei,&!l 

Indian  eom 873,587 

IfUmt 7i5,880 

OIFOBTS  nf  TWXI 

Wlwat S0,U6\961 

Parley 7,«18.4i»4 

Pas 78Mt» 

Beans 95s8i3 

IndUacora 7,0»«,033 

Ifkw       8,5#c4,47l 

For  the  carreot  and  for  last  season,  ths  statement  relating  to  the  impo  ts  and  ex- 
ports of  wheat  and  floor  into  and  from  the  Uuited  Kingdom  is  subj  nned  : 

WBKAT. 


1866. 

1867. 

1868. 

8,0)9,«91 

8,767.646 

l,74tf,138 

:,380,410 

8i8,59i 

8U5,iKi6 

8rr,3fl5 

7W.115 

6  3,174 

S03,  78 

804,  I8{ 

193,165 

80n,639 

136.03.) 

190,970 

886,864 

463,117 

7W3,t69 

669,147 

65ai9 

896.788 

1  XOHTHS. 

S3,156,8{9 

84,C4\5A9 

a),515,491 

8,43:l,8«>3 

5,118  ),731 

6,4110.743 

8,844,A»3 

9,407,138 

7,660,341 

1,311.8:» 

1,58M39 

H**7,5S4 

1,334.173 

1,983  «15 

8.463,897 

14,333,803 

8,54.),4-il) 

10.560,13.1 

4,972,38) 

8,5^13, 903 

8,7d4,468 

1867-8. 
cwl. 
Sept.  1  to ^ec.  BS.   -•••••  ••   ••.«...••••••••  18,863,474 

Weekendlfig/an.  B 871,169 

T^tsl - 14,1^4  6)8 


-Importa- 


186&-9. 
cwt. 
0.8 13,351 
444,143 

loissd^ 


/— — —  Export*— —  — % 
1867-8.  1868-0. 


cwt. 

880,4«0 

9,118 


cwt. 
138,858 
676 


898^573  139,439 


.  * .  •  ■ . 


rLooa. 

.    1,809,737 


1,831,19^ 
79,618 


8«pt.  1  to  Dee.  18 

Weekcodlsg  Jan.  t... 

ToUl 1,390,605  1,8081^46 

As  regards  cotton  the  returns  show  th  it  our  recei^  ts  were  only 
those  in  1867  : 

IMPOXTB  or  OOTTOH  IN   DXCIMBBa. 


83,156 
811 


16,6% 
448 


88,407  16,188 

about  equivalent  to 


1885. 
c*t. 

, ..     TW.017 

Biuiitaa 103.878 

Kutlodiaa 6>8,845 

Kejuttoo 86',tfM 

lOkteilaxMyaa .       98.M1 


1886. 
cwt. 
407.409 

47,736 
S63,7S>8 
841.015 

80,368 


1887. 

cwt. 
4W,486 

81.800 
410.863 
187,41.4 

»MSO 


Totsl,i]idiidiag  Other  kinds 1785,796      1,010,8l6       1,119,7891 


1888. 
cwt. 
48r,098 

64,88T 
8n,7»4 
13«,737 

11,988 

1miI408 


154 


TRADl  OF  ORBAT  BRRAXIT. 


[Fdfruary^ 


IMP0ET8  nr  TWILYB    M0RTH8. 

American •««....  1,919,790  4,648.870  4,71S,7S8  4,9dO,S3S 

Brazilian 494,671  611,808  628,761  8H» 

Est  Indian 8,081,765  6,498,770  4.449,SS0  4,075,718 

Bc^yptian    1,678,919  1,066.900  2,l«7,64t  l,040,ns 

Hlacellaneona 1,468,901  490,966  861,367  963,717 

Total,  indnding  other  kinde 8,731,949     19,996,606     11,973,6)1     11,914,619 

The  following  tiatemeDi  showt  the  exports  of  the  priocipal  deaeriptiotM  of  cotton, 
linen,  tilk  and  woolen  goods  to  the  United  States  and  to  Franee  io  eleTan  months : 

TO  THS  mnrxD  states. 

1866  1 867  1888 

Ck>tton  piece  ffoods yds. 109,194,889  88,98^749  68.805  S6S 

Cotton  thrend. lbs.    1.806,801  1,880,910  1,800,637 

Llneopiece  goods 7d8.109,679.<84  80.081,785  76,5^8,414 

Linen  thread!  lbs.    1,859,501  1,998,965  1,808,J79 

bilk  p<ece  goods yt.       687,167  394,8i)6  830004 

Woofencloth yds.    4,80S.uaO  8,146,958  2.847,156 

Ciirpets  and  drnfigjets yds.    4,3»^615  8,688117  8,il«,5t« 

Miawie,  niff«.  Ac  nnmb  r.       18*2,889  110.546  96.i« 

Woraledstoffd yds.  70,620.607  48.640,896  65,860,756 

Total 995,414,446        999,^89,686         919,874,44 

TO  VBAKCS. 

Cotton  yam ..lbs.  8,715,668  4,688,719  9,878,441 

Cotton  piecft  goods yds.  60,666,879  89,166,^60  84.001,810 

Cotton  th-ead lb».  198,U95  60,899  HS,m 

Lmen  yam lbs  9,lUl,170  8,091,678  9,716.u9i 

Linen  piece  goods         >ds.  5,098,985  4,665,786  8,«»4,2S8 

^ikpiecegood  yda.  88.908  19,689  99.304 

Woolen  yam lbs.  l,75i;688  8,879.860  6,638578 

Woolen  cioth yds.  4,8-6.943  7,166,>»7  1,713,878 

Ca^peU  and  drnggets Tds.  717,657  459,679  675,^ 

h bawls,  rugs  &c numb^'-.  4,9U7  19,179  1S.687 

Woratedstaffi) yds.  $8,688,400  17745,688  14,193.947 

Total.. 99,168,868  80,896,680  66,498,878 

In  a  fiuanciil  point  of  view,  the  more  prominent  feature  during  the  year  which 
has  just  closed  is  the  uninterrupted  cheapness  of  money.  For  the  greater  part  of 
1868  the  official  a  in  mum  was  at  2  per  cent  and  it  was  not  until  the  l&th  of  Noveffi- 
ber  that  a  rise  to  2|  was  decided  upon.  Ou  the  2n  of  December  it  was  resolved  to 
further  advance  the  official  minimum  to  8  yet  cent,  and  at  the  close  of  the  year  the 
Icwest  rate  of  money  was  at  that  point.  Had  it  not  been  for  the  numerous  Russiao 
railwsy  loans  which  were  brought  forward,  and  the  other  furei.  n  loans  which  wers 
introduc-  d  on  our  market,  it  U  not  improbable  that  an  advance  in  the  rales  would 
have  been  uncalled  for.  The  trade  of  the  c  untry,  although  iiicreasirg,  has  not  im- 
prove i  to  an  extent  calculated  to  hive  much  effect  upon  Uie  mooeyr  market.  It 
was  clear,  ;  owever,  that  there  waa  some  inc  «-as**,  and  that  circumstance,  c<nE- 
bined  with  the  fact  that  it  was  neressvy  to  give  a  check  to  f^rei^u  goveromfOt 
loans,  justified  a  rise  ;  anr  the  event  l:as  proved  thst  it  was  neede  i  and  has  bees 
beneficia*,  inasmuch  as  it  has  corrected  the  exchauiea  and  checked  tbe  outflow  of 
gold.  Ou  stock  of  bullion,  v^hich  oi  the  24. h  of  June  was  £'i2,96  .981  (the  largest 
amount  held  at  any  one  time  during  tht*  y»-ar).  declined  on  the  9th  of  December  to 
£17,841,669.  but  since  that  period  it  has  been  increased  to  £18,446,858.  Below  we 
gvtt  a  statement  showng  the  oonJiti>  n  eac  ■>  week  of  the  Bjuks  if  Englatid  and 
Franee  during  the  year.  It  will  be  sees  that  the  largest  amount  of  bullion  held  bj 
tbe  Bank  of  France  waa  oo  tbe  S6ih  of  August,  when  it  was  £62,896,708  ;  tbe  loveit 
amount  of  discounts  being  £i6,6 18,701 .     As  stated  above,  only  two  alfceraUoos  wers 


860] 


OOmCXROlAI.    OBBOKIOI.K  AND    RETIBW. 


155 


■ttd«  in  Um  Bank  of  Eoi^Iaiid  rate  of  diioouot^  vii.,  from  2  to  S^,  and  from  2^  to  8 
per  ceDt    The  Bftok  of  Fniice  rate  was  at  2|  per  cent  during  the  whole  of  the  year  : 


Week  eodlng 


M 

'  i::::::.::::::::;:;;:; 

>  •     •• 

** 

15 

w 

M 

w 

99 

Febnurj  6 , 

"       W 

•*        19 

M 

90 , 

Mirch 

4 , 

*» 

11 

M 

18 , 

t* 

95 

April 

M 
M 
U 

X  ■  •  •  »  •  ee-e  •■                  ««•■•■«< 

92 

29 

6 

IS 

90 

97 

JoDe 

8 

*4 

10 

W 

17 

M 

Ik 

94 

1 , 

8 

u 

15 

** 

92 

M 

Angnit 

5 , 

u 

10 

M 

Septflmb*Ri 

kk 

0 

u 

le 

w 

98.- 

M 

to 

October 

•t 

14 

u 

•t                     

«« 

KoTeiDVr4 

*»       11. 

•t 

18 

M 

95 •  

Decemb 

•r9 

>• 

9 

M 

15 

•  t 

•-^ 

•  •  •  • 

M/* ■■•••■•• ■ ■•■•• •••« 


* — w«nk  of 
Bullion. 

£99,  61,798 
2i,0i0,07» 
92,06^,218 
92,S00,»)8 
99,819.695 
91,766,981 
2I,606,1'60 
91,199,140 
91,84^,789 
9M86,1»9 
91 ,17^,^80 
91,981.427 
9l«48S0H3 
91,104,119 
90,8«,0T7 
90,711,-i80 
90,537.110 
S0,l«-2,83ft 
90,40  2.9J« 
90,901,888 
90.788,«W3 
91,290,659 
91,9Hi<,vM88 
92,%04,81S 
9-i,571,045 
99,9i2,fi8i 
99,761,991 
92.551,' 42 
99.18rt,685 
9-2,077.«84 
91  064.5M 
91,871.<«0 
90.8(X),799 
9  •,785,9111 
90.774,101 
90,845,668 
&0,786.148 
90,775,909 
90,084,840 
91,001,186 
90,707,945 
90,1 04,9' 0 
19,^47,174 
lK844.fc6l 
19  477,788 
10,8SR.b50 
IS,"  56,650 
18,366,687 
18,«  87,448 
17,841,»69 
18  158  ni5 
1",991,621 
le,44C,b58 


Eoeland. — » 

Oth.  Becnrlt's. 
£20,195,019 
18,300.004 
17,806.  ff9« 
16,810,086 
l6,616,'i6S 
16,44^736 
16.490,809 
16,2tvs,880 
16.206,615 
17,611,714 
17,672,261 
17,777,440 
10,0:)»,888 
iO,»9S,418 
18.715,R40 
17  :«S,}>xl 
17,882,818 
18,081,775 
1  ,288,404 
10,8^  0  487 
1»,8(>4.724 
10,272,810 
10.202, 13J 
1M,H5»),914 
18,418,6;« 
l8,ltK).27« 
90,451.681 
18,412,7^5 
16,0rM,426 
16,  00,418 
16,070,801 
1«,29  2,887 
16,140,757 
16,174,185 
15,S07,«yr8 
16,389,080 
16,2  5  656 
16,124,0  0 
16,008,605 
I6,8ft6  699 
16,054.128 
16,822.288 
15,  81,648 
15.71 5,428 
15,728,201 
16,817,  65 
16,87.v,fi8l 
16.6f(2.110 
17,108,8.0 
17,87S.559 
17,494.078 
18,:»9,a05 
au,';  80,8.0 


0 ^B^nk  of 

Knlllon. 

£89,^28,9SS 
89,811,448 
P0,004.856 
41,084,652 
41,707,120 
42,558,048 
48,482,8!  6 
44,860,400 
45,078,2.9 
45,264,099 
45,67'^,020 
46,424,464 
46,7ii2  400 
4tf,068,S60 
4.%818,008 
45,12-).656 
45,460,479 
45,607,' 04 
46,:.'^,r)56 
46,3'.0,5'>6 
47,087,1*64 
47,010,844 
48,86i«,444 
48,2S'.,1  0 
48,538,»KK) 
48,809,148 
48,767.544 
48,170.3S8 
4^,166,660 
4d,738.2t>4 
40,048,128 
40,81 1,7U8 
61,  80,'>84 
62,092.464 
52,895,7(!8 
52,671,048 
52,072,»i85 
61,050,540 
51,0(11.088 
50,048,8r»8 
50,040,':05 
40,172,246 
48,908,''69 
48, -259,789 
47.677,285 
46,966  191 
46,fi^  6-6 
4629%115 
46,786,659 
46,901,558 
45,764,«06 
45,573,856 
44,800,479 


France. » 

Discoants. 

£22i«',879 
22,038.486 
91,013.624 
20,  65, -^6 
80,759,000 
lr»,07O,424 
18,744,704 
1^'21«  6-S8 
17,846,48* 
17,587.859 
16,068.876 
16.612,708 
16,62,^,5<»» 
17  ^82,259 
17,542,889 
17,411,24J) 
17,089,44 
10.440,K)4 
17,^76.5(« 
17,702,65li 
16.881,1-18 
17.00',H)0 
1678:,748 
16.804.0T6 
16,484,252 
1H,5T6,008 
17,8717^9 

17,20', HI  9 
16.526,068 
16.6:^0,C«'8 
17,616.-76 
15,518.701 
10,847,6521 
92,150,060 
20,798,a'>6 
10,489  809 
18,587.884 
17,088  818 
17,776,852 
17,«67,6<8 
17.840,700 
18,505,300 
17,782.786 
18081,C80 
18,768,520 
1S,640K)0 
18,527,380 
1  ,R%8,fi20 
19,500,664 
10,480,564 
10  10t,888 
10,781,456 
95,668,78S 


COMMERCIAL  CHRONICLE  AND  REVIEW. 

Actir  tj  io  Financial  Affiiira— Trareactlons  fir  the  month  nt  the  two  Boards—United  Htetes 
—Bo  '♦•»  told  ai  theliiew  York  Stoca  Bxch>tD((e  Boar'— Prices  of  «-Jovemment  Secoiltles  at 
NcwTrtf  Conrae  of  Conetili  8"d  AmericaD  Securities  at  Lo  don— R*i>way  •nd  Miscel- 
laDeoD»  Secori  lea— If  oyement  of  Coin  and  Hnlliou  at  New  York— Coarse  of  Gtold  at  New 
York— Coarse  vt  Forelgu  Kichsnge  at  New  Toik. 

Januarj  has  been  cbaracterhed   by  considerable  activity  in  fioaDC  ial  aff  in 

Instead  of  the  ezpeeted  reactioo  from  iheex'remestrinu'ency  In  money  toward 

the  dope  cf  1868,  Uere  has  bten  a  eleady,  healthy  leeling  in  the  loan  market, 

vitb  7  per  cent  as  the  general  rate  on  call  transactions,  and  7^9  per  cent  on 

dijconnts  of  prime  paper.    Mosey  has  not  begnn  to  retarn  from  the  Sontb,  being 

apparently  reqoired  more  than  in  former  years  for  the  growing  retail  basines, 

of  that  ieetion;  nor  has  the  refloz  of  cnrrency  from  the  West  been  so  abundant 

it  otaal  at  the  season.    It  Is  mainly  doe  to  tboee  circomfctances  tbat  the  banks 


156 


COMMBROIAL    CHRONIOLS   AND    RKVIBW.  [FtbrUtUl/^ 


of  this  City  held  at  the  c'oee  of  Jaoaary  only  $57,700,000  legal  tenders,  against 
t71,700,00<t  at  the  same  period  of  last  year.  Yalaes  on  the  stock  morket  ba?iDg 
rao^ed  anu^aally  high,  there  has  been  in  that  fact  an  occasion  for  a  large  demand 
U  T  lodos  from  brokers.  So  diffisnlt  ha«  it  been  f  r  this  class  of  borrowers  to 
procure  money,  that  negotiations  have  been  made  for  the  *carrjiag**  of  large 
amoQDts  of  stocks  in  the  Earopean  money  markets  for  a  fixed  period,  which 
loans  have  the  dcoble  advantage  to  the  borrower  of  not  been  liable  to  disturb* 
f  nee,  and  ot  a  lower  rate  of  interest  than  «oald  be  paid  on  this  side.  The  fact  of 
the  market  constantly  verging  apon  a  state  of  inconvenient  stringency  has 
induced  parties  carrying  stocks  with  a  view  to  realizing  higher  pricep,  to  borrow 
ron&i  ierable  amounts  on  time,  so  as  to  protect  them  against  probable  derange* 
roents  connected  with  the  April  quarterly  bank  statement ;  these  transactiooi 
beii.t?  gt>neraily  done  at  7  per  cent,  with  a  full  *'commi  s  on"  added. 

1'he  took  market  has  exhibited  unusual  activity  and  firmneso.  The  prospect 
of  the  completion  of  the  Pacific  Railroad  has  given  rise  to  schemes  for  con- 
necting the  Erie  and  New  York  Central  roads  with  the  new  enterprise  throogb 
alliances  with  Western  lines;  and  in  the  prosecution  cf  these  plans  enormoos 
amounts  of  Westen  stocks  have  been  bought  op  by  cliques,  partly  for  the  |nr* 
pose  of  controlling  the  roads,  and  paitly  <  n  the  tssumption  that  the  stocks  will 
t>e  made  more  valuable  through  the  new  cinnections.  Towards  the  clo^e  of  tbe 
mouth  a  check  was  put  upon  the  upward  movement  through  the  action  of  tbe 
Western  legislatures  looking  to  the  reduction  of  fares  and  f  eights,  and  to  coao- 
teructii  g  tbe  eflTjrts  of  Extern  specolatois  to  secure  a  protracted  control  over  the 
roa  s  of  the  West.  There  i^,  however,  a  large  amcuQt  of  street  capital  employed 
in  the  support  of  these  schemes,  and  it  is  perhaps  improvable  that  prio(a  will  be 
ptriiittf-d  to  f.ill  materially  until  the  plans  are  worked  out.  This  has  been  tbe 
main  stay  o'  the  market  nnd  has  encouraged  a  strong  feeling  id  stocks  not 
directly  ufflcted  bv  thu  maiu  cause. 

'I'he  total  transactions  for  the  month  at  the  two  boards  have  been  ]  ,527,917 
si  a  es,  against  2,553,889  sharts  for  the  corre  p  nding  month  last  year. 

Increase. 


Cla«808. 

Bank  etuireii 

Railroad    "  

Coal           "  15/00 

Mining      "  4  ,6H 

Improv*Dt''  tfe,4;)0 

Telei^raph"  ^ 6i,«i00 

Steamsiilp"  1»),S40 

Kxpr'B«&c'*  b4,e96 


1868.  1800. 

8,7  i  8  8,fil0 

S,144,18l     1,817,0.9 

d,fl68 

81,875 

81,>tll 

4S,17IS 

4%849 

58,6M 


Dee. 

108 

8i7,168 

8,51*7 

14,m 

«J,1W 

i«,ia 
8s,m 

lll,(r4 
1,085,^ 


Total-Jannary 1,663,889     1,687,91/ 

Ihiiied  Stat  s  bonds  have  made  an  advance  of  from  I  to  2^  per  cent,  on  tbe 
vaiiuus  is^uen.  wiihin  tbe  month.  Tbe  large  demand  in  January,  for  the  reinvest- 
ment of  interest,  i*  usually  attended  with  a  larger  rise  than  has  occorred  tbis 
year,  isp<  cially  in  8iity-S(ven4,  which  is  pre-eminently  the  home  iovestnieot 
bond.  Th  a  departure  from  the  as^al  coarse  has  been  dae  mainly  to  tbe  per- 
sistent oppoattion  of  f^ome  leaiMi  g  dealers  to  any  npward  tendeoey  of  the  market, 
bafed  tppareutly  up  n  the  fact  of  ihdr  having  Detected  to  sto  k  tbeoiselvei 
with  bonds  iii^  anticipation  of  the  special  January  demand.  There  has  been  a 
disposition  in  sou e  quarters  to  keep  *< short"  on  the  market  in  antic pation of 
GongrcFs  refusing  t<)  adopt  tl  e  declaratory  reiiolutioa  in  favor  of  the  payment  of 
Five  Twenties  in  coin ;  toward  the  close  of  the  month  there  was  less  inclination 


1B09]  OOUHKXOUL    CaHOBIOLk  AKV    KITIIW.  197 

to  operate  opon  that  ezpectatiso.  At  LondoD  tb«  rooffe  of  Five-Tornlirs 
hu  bfea  steadily  upward,  the  price  haviog.  adTaoced  1  per  ccot  wittiin  ibe 
month. 

Tbe  'olal  tnitfadiona  of  the  montb  of  all  dssses  of  bonds  amoant  to 
t!9,G3d.510,  BgaiDst  926,066  650  for  tlje  correepondiDg  mooth  of  18(18. 


c:w**.  1W3.  18TO.  Ine. 

'   "       '  |lN,-iW.4O0     |liO,8»,OM       |S,»i»l,850 


BislBoimV"".//.'.'...'.*.'.'. !"I^I1. !!!!!'" ''».'HS.'r*o         ...  . 

Si'o  AclIT  b'd* MIJ.MO         V54.«»         »,'104PO 

COBpaoT  b'da  ..     ■■■ I,l'l9.400        X.S<U.aO0         l.'Kilrui  .„'.".' 

ToUI-JaEDanr , $X.<XeMO     •IS.UMID      «1JHB,M(I  

I'fae  dailj  closiog  prices  of  the  prrncipal  OoTeroiiwDt  Kcaniies  at  the  New 
Tork  Stock  Ezcbaoge  Board  io  tbe  montb  of  Jaondrj,  ai  repreKoted  bj  the 
iieit  sa'e  officially  reported,  are  bIjowd  in  the  rollowmg'  slatcment ; 


I>iTOf  ,-i'f,lS&l.~,. — -S'f,  (5-JOtti.)  Coupon ^B'fIO.4 

ocDih.                                              Coop.    Be(.  Itti.  l&a  luB.  Dew.  IMiT.  16tS. i n  Cm 

1. (HolL'.y  )  '™' 

« viv    .^ loij;  iOB>(  107  ims  107m  id* 

* iii«  10B«  in«  m;t  ma  win  lo  «  -  osv 

• "1     '"»  "i«  mn  Jtnx  iwx  ifflix  lOjjK  losx 

« lux    IMK  IilJi  yo-H  JPPK  l'l«  IIKV  .       .  ],«2 

1. Ill*   nn«  ii!j(  iOa,i(  iwi«  lOBjr  locjf  io««  iwS 

1 lux    IMX  "'S«     HBt«  lis  lo-jj  ](r.3(  ](w,^- 

» "S       liaX  IIWV  )(«!«  ir*x  10!i  JwiK 

" 11*       n"X  IISV  !»■«  1W«  1^««  1W«  !(►■•(  lOBV 

n liiX   i"X  int-x  io(i«  IDs  jch),-  ]».}(  lOftjS 

" Jiox  iisx  ineti  iw«     ....  iof.j<  vr-x  vns 

" lujT  uiH  lux  10  «  iwv  iw«  ii-ji  jonI!  imx 

« in«  111  ii'«  iw«  im\  v^H  in--M  lOi-x  iWK 

15 lUX  lifV  110  lOSX  IDSK  IDS 

IS •  ..  iiw  ita)(  ioo3i  I10K  loex  io.-m  iw  mw 

» !»«  iiiX  UK  iow)i  iiO«  JOf«  ion2  io»  itng 

» mx  iii«  mx  WK  no  ksv  imx  inrjl 

*; lis  in««  no  iii'jf  lOBK  lOo  icn2 

« 11)]^    lllK  11t»  lIKIJi  110«  lOe.V  JthX  in  108 

IDBX  UOK  1»-W  108 

'"  "  '"■"  '"-"  ■"  •■  louft  loex 

—  ]0B3i  lOSJi 

- ----     - ,.  llOJi  lOtX  WX  IIBM  li^W 

S 1"«    "W  1U«  IMJ*  .      .  li>-H  iOH  ...  .  ....- 

» 113S  1«B«  110«i  lOe.t  I'm  10|.J(  JOSH 

»J ^^^    IIIK  ^_^  1W«  110«  .^  10«^  jw"  iOBS 

Firi nix  lOTX  iiix  icnji  i(««  lOT  juiji  ioTJi  ine 

i«wMt ill     iiw  niH  loix  lo^'*  "i««  ii«}g  iinii  i«x 

fiUb«t IKX    mx  IIW  lOBX  IIOX  106K  10»  lir"  toW 

Kioge IX       !l«       W  S«        *X       S           ««       W  iS 

U»U 11»X    IHX  118X  1»X  IIOX  lOSK  V»S  MT  M^ 


158 


COMMXRCIAL    CHRONIOLB   AKD    KKTISW.     .         [i>6f«afy, 


1'be  cloeiDg  prices  of  Five-Twenties  at  Frankrort  in  each  wedc  eodiog  with 
FiiHiiy,  were  as  follows  : 

Dec.  4.                        Dec.  11.                   Dec  18.                Dec  S6.                     MobUl 

7yh(^l\iH                        '^X                        78X                   Christmas  18\019X 

1'be  foilowiDg  table  will  show  the  opeaiDg,  highest,  lowest  and  closiog  prices 
of  all  the  railway  and  misoellaneoiis  securities  quoted  at  the  New  York  Stock 

Excbaoge  darini^  the  moDths  of  December,  1868,  and  Jaoaarj,  1869  : 

0             Decem'oer            >  r-           January'  i 

Open,  High.  Luw.  Cioa.  Open.  Ulga.  Low.  CkM. 

Railroad  Stockt— 

Alton  J^  Terre  Haul. 41        413C     SS  4% 

^.™*    »*         -     nref 6t        es        SOX     61  61        WH     61  6»X 

Boetoa,  Hartford  *  Brie S696tnMy79Sa7  27>( 

CwS«iAAlron    146       147       140       147  147       161       147  IfiO 

do            do    pref U6X    146Jf    138X    145  US       150       148  160 

Chlcaao,BaTLAiiialnc7 Hi      175       110       175  190      900       185  188 

do       AGt   Bastern 45         48         4S  46 

do       ANorthweat'n 80        86)tf     74<i     81  81        §$X     81  MJ^ 

do                   dODrcf 87X      88^      ^BX      83^      84^     »         WV  M 

do       ARocklsland. ....  KHX    118       105>^    118  118^    185X    IHX  1S3X 

Cin.Bam  ADajton 77        77         77  77 

cSumb.,Chic.&lnd.  C... 86X      41         86^      41  45         »       4»h'  JJ 

Clev     APlttoburg 87^      88^      88         84  84X88^     &)i  »X 

do    A  Toledo.;: lOOX    10«2     96X101  lOOXW       122*^-£X 

do    CoUCin.  AiDd 7.         77        74X     WX  74         75         78  78 

Drf,  lick  A  Western 181       181       1*       125  11»X   1«X    11»  ^IJK 

DabnQue&Slonxclty 97ll79797»497»497 

do                  do     pref.  96        96        96        96  

Erie    99X     41         87X     «8X  88        40X      88  JHX 

diiref    .  .  60         65         W         65  63         64         61X  68 

aS'Sr...... ...125       1S8       190       195  193X149Jft'      115  IW 

^.       mef 190X    1«0X    1»X    190X 

HannibalA  St  Joseph 90        91        90        90  90       110        90  110 

do                do  plref 9.'X     9SX      90         «0  91X    HO         WX  108 

Ho^RiTer : 183       18BX    1»4X    185X  WBX    187X    180  laSX 

do         do    scrip.... .•..••» ...   •     •.••     »*          98          "0          95  ....       ....       ...•  .... 

nilnols  Central..: 1*4       144X140       140  Ig^^JJ^lS  ^ 

Joliet A    hlcago...       .••••....•  ......  ....      •*.•      ..*•       ••••  ni        V3        m  v« 

liOtur  Island ■  46         46         45  45 

LakeShore 100       101        95        99  99       108        99  10^ 

Mar.  ACindn.,lstpret 95        95        99X     89X  

•♦              "       9d    "                                 9          9          9  9 

Michigan  Central 118X    19»       115       116  115       ISl       114  190 

do       8.  AN.lnd. 88«      89X      84X87X88X86         87X  96X 

MilwankeeABt.Paul 70X     7UX     68        69  68        T7X     6S  TTX 

do                doptef. 80         8!»         MX     86X  89         96X      STTX  M 

Morris  ABasex..... 90        95        85        87  86        87X    85X  87 

KewJwsey 138X    18«X    189X    188  198       180       *«  180 

do         Central 115       117       llOX    115  115X    116X    119X  HI 

New  York  Central 128X    159X    19«X    159  159X    166X    154X  168X 

do         AN.HaTen 140       140       140       140  189       1«0       189  155 

Norwich  *  Worcester 91         91         91         91  96       100         96  97 

OU  Cret-k  A  Allegh-ney 80        80X     80         80  77        71         77  77 

OhloAMlasift^lppl— • 61X     84X      99X     84X  84X     89         »%  89 

do              do        pref 77        77        77  77 

THuDuna   660      840       SVTX   840  848       848       840  844 

PlUsb.,  Ft.  W.  A  ChiOL IIIX    114       109       11  X  118X    19«X    11«X  1»« 

BMdl^ 08X     96X     96X     96  98         98X      98  97X 

Henssa&er  A  Saratogo 98        98        98        98  

Rome  A  Watertown 118      115       118      115  

Stoimicton 8888888)80(08080 

iy>ledo!wab.  A  Western 58        60        5SX     50  MX     67        69X  65 

do       do        dopiet 70X     TOX     70        70X  74        78        73  78 

MisceUaneons—  ^        ^a      ^  ^o 

American.  ...••.•■••••••**•  •  •*•.*•••         ••••      ....      •«.•      ••••  4B        4B       4Rf  48 

C  ntral 60        64       5^  64 

CnmbeilandCoa] S^X     89X     86        86  SB        89       87  88X 

Del.AHnd.CanalCoa' 181       184       180       180X  180X    1^       195X  1» 

PennsylTania  Coal 915       999       9i5  999 

bDriDff  Monntaln  Coal 40         4tl         40  40 

AtanUcMkU 91         9»          21         91  91         99         91  v2 

PaclflcMail 118       190X    lUX    118X  H^X    19SX    IKX  lt> 

Boston  Water  Power 15        14X     I'^X     18X  18X     16        ISX  16 

C-nton MX     »X     47X     49X  49X     «9         4«X  6I 

Brnnswick  CltT 10        10          9X  10 

MaripoMi 8X      5X       4X       5  6          8X       6  7X 

do;       pref 91         91X      19        90  9)        DX      10  94 

Qalckai^w 93X     98X^0X98  99         M         99  913^ 

jUalMttttaGM S4)980880980980»)iaU9SW 


18S9]                      OOMIIIKOIAL    OHSORIOLB   ASD    RIVIBW,  159 
.»•«      mx     ffl        3;«     M         UK     M«      Sij£ 


AiDiaaU.llnlim M        41         41         41         tan     *f         88         « 

Adiau      M        SO         49         4H)i      48^      Ml         4B         C4V 

Fnil^BUM ««  4tM      4B  4B  44  OH  41  U>f 

J.fch«t'inBlM KH    ISK    I4>f     )4«    »M    KM    i*«    ns( 

Ttefnllowii^ronnolawillBfaow  tbe  movenieot  Dfcoia  sod  ballioo  during  the 
noDili  of  Jiuiiiiu7, 1868  aad  1869,  respective!; : 

asKBkAL MoramaT  ot  oow  and  •Du.toa  at  vaw  toil 

IMS.  ]Ba9  Incrun.  DccrasM 

1> lute, nan OtM |tO,»11.MS   t>0.736.in   |S,Wt,lISS    a... 

Rn^purhHoCHUbnlL l,941.in»      l.ai)S.-M8      in,5se 

Import!  ofcMD  and  bolltOB lll.Tfll  IBU.floa  4e,lfil      

CL.ID  inumi  paid. ll.Bn.W1     18,lll»,453     ((.Sai.eiM       

Btil«iiftlaBaflauori8«T-'«i 4,4asK0  U.&OO  4,443,aM 


To<ilrat«rted«m>pl7. $»,»».»»  M1.>%H13  |lt,lM,Wt    ■ 

bvaniorailnudbDUloii 1^.380,131     r;,«M,4n      |B 

7,TOl,ilW       9,101.418    >,4<n.8W 


•B,OTB,CW 


«^l:': 


HfMLTll   •I1.9.S3.S8T    «...  tS,«O.S34 

8ii,i49,s7s  ifli.Mw.im  jtiBaisg  $ 

«8,Sie,iao    ?r,T>4,«a    8,t,b,»03 

UuVOrtedMsne* *>,4IU,741     C1^14,T»      t t1,W0,M» 

Tbeeouraeori^lil  bubeenadiMppoinlmeDt  to  perhap'a  majority  ofoperut  >ra. 
It  (ppaued  to  be  taken  for  gnnte  1  thst,  u  usaal,  Kfer  itie  rftmeDt  of  the 
Itetirj  interest  llie  preoilam  noald  adTBoce,  and  <bai  the  rise  wouM  be  climo- 
iitnj  1^  a  coDsidera'-le  export  ol  Bpei:ie ;  an-',  under  thb  iden,  large  amoaola  of 
pidvera  boo^^bt  e«rlv  io  tbe  month  mod  Wld  tbroagh.  Kxc'SDiie,  however, 
MiviitolandiDg  BMsrcitf  of  col  too  bLls,rQled  low,  tiod  tbe  export  ol  Bpecie  were 
ul;  |i,!50,000,  offaiDSt  Si  33(1,001)  in  the  same  mooth  of  1HG8  ;  lliii  conrte 
ol  ibe  foreign  ezcbange^,  togetfaer  with  a  pacific  BetUemenc  of  the  Easiero  qaee- 
tioD, piodnced  a  deling  of  di-appoialment,  with  a  eoosFqneal  lar.e  ainoiiiit  nf 
»liiiR,  lod  tbe  month  cTooed  upon  a  weak  market.  Tue  OKiin  ca<iK  of  tbe  tigbt- 
Hfsnflbeexporls  of  bultioD  appears  to  have  treen  ttat  a  C0D8ider>('i]e  amou 't 
m  bills  were  made  sgaioal  loans  negotiated  in  Europe  upon  stock  collaterals  and 
tallest  Earopeu  porcbasn  of  slocks,  especiall;  Northwestern  preferred  and 
Bock  ItUod.  on  this  market  The  arrivals  of  treasure  from  Califaroiit  have 
bm  about  tbe  aame  as  last  year.  The  payments  of  com  iorereet  at  the  Sob- 
Trudtj  were  ST ,000,001)  in  excess  of  those  of  Janoarj,  lS6d ;  while  tbe  cu  toms 
pijatenls  have  been  S'^f^OO.OOii  above  that  period,  the  resaJt  beioi;  that,  at  'he 
tice  ot  the  month,  we  have  S3,T30,ijOO  more  specie  io  the  binki  tbao  a  jear  ago. 


COHUIRCIAL  OOROhlCLZ  AKD  RKVIt*. 


Tbe  Mlowtng  eifalbita  tbe  qnoUtiooa 
)□  tbeprincipal  Earcpnn  markela  daily 


London.  PiH>. 

Unta  (or       ccnKmei 

Dtyi.  H  p«Dce.      foTdoUu'. 

t'.'.'. '.','.'.'.'.'.'.'..'.'.'.'.  t  stnvn 

i (  Biexa  ..  . 

6 !    B'.GKOEIBK 

e >    MSJtSftlGK 

1 (    GlflDOBIaK 

S -    ft1A3(3»l»K 

g .  UHSt&iJK 

II ;  BisjaSsiSK 

a  .  MBxos" 

IS :   BWJKfAis 

IB ;    BIOM 

U i    BUK« 

U .    B1«M 

IB ;    616J(^ 

» ;    fllKMS 

■I 1    Bltmi 

II ;  BWks 

n :  BiB>t« 

M ;    BIB    f 

la ;  BIB  < 

n....    ;  BIB  ( 

«s ;  BIS  < 

M :    BIB    ( 

to flWKii 

Jin.,lSK...     V><}(mmi    Bl«V«GUjK 

Ju.  isw». lota^uoii  inMmii}t 


I  New  York  for  banker  RO  daji  biBi 
1  tbe  mODth  ol  Jeaauy.  18G9  : 

(<n  DAT!)  ±1  MSW  TOU. 

AmMcrdun.  Bmnm.    Hamborg.     Bcrlli. 
U.  banco,      ibtler. 


E^K" 


csnulot 


JOURNAL  or  BANKING,  CUKRENCY,  AND  FINANCE. 


Retnnu  of  tbe  Kaw  York,  PblladeUphli  ind  Boatoa  Binki. 

Below  we  give  tbe  reLnrns  of  tbe  Banks  oF  the  tbree  cities  eiace  ■ 


Jumirr  S....S>Gfl.i'MI.[nT  (aO.TSf.lM  t^.S 

JkunuTH....  UB1M.H1  t7.Klt.1M)  M.S.-,..^ 

Juury  IB...  Hil.B4B,8SL  )«,^^8.6««  34.*'.R.1AS  .... 

JlDMrr  ait...  t«4,>4l.«'tl  SH.tlM.ieT  8I.«>B,B<B  IRI.lOI.lGa 

Jiniury  to. ..  ■U.lll,  0«  Sl.TIH.Wa  »t.Ui,JU  lM.»iG.4fl 

FabnurrH-  -  MI,B4],7SJ  11,itsa,4IU  H.HB,iM  luB.OOJ.SN 


IKU  TOi.1'1.— 

M  Bt1.083  l>TS.1W.'ll 

Bl.O«..lll  BT. a  1,6*1 

Bs,«^isa  ir.o  sit,<ni 


JuiuiTl tBl.11B.WII 

Jimurjll S:,MI,t9T 

JuDBrv  IB B1.I11.7S3 

Jui)-tr» bt.B!tT.OIIi 


S  pac  le.  Lefil  Taoden . 

<m.4iia  la.TM.ifts 

411  8^  ll.O&l.hTO 

8  VS)  14.  A«.BIO 

infill  13,18B,SS3 


au.6tt,lBS  IB.eWHV 

ig,KB,4»l  10.S-M14 

i<),err.Ma  ii).«a.xt 

4o,090.sn  ig,9iii,Ki 


(Capitia  Ju.  I,  isu,  t«],imo,oi».] 

ouie.  Bpeela.      Le;s'  Tendera. 


Junuj  11 liO,7/r,CkT 

Jaonirv  IB Iin,«>fi.>0» 

JuD  r/ H 10a,MB,tl4i 

Fabni'Tl IUI.bwmBS 

FobiiUiTB 10l,BU,W 


■B.»u,9in 
jti,in.»i> 


T  il  R 


MERCHANTS'    MAGAZINE 


AND 


COMMERCIAL     REVIEW 


m^t0^^m0*^*0^miim  m  W  ^0^^^^^^^^^^^0^0m^*0%^t^^^^^ 


MAECH,     186  9. 


^l^lAMAtfWk^^^^i^>^iA^IAtf«M^MM^^^tf«*«» 


DMBHGB  OFRlIIBOiDS  IN  BETELOPINI}  THE  WEALTH  OP  THE  COUNTBT. 

BT  GSN.  H.  WALBRIDOE,  OF  KBW  YORE.* 

I  propoee  to  discuss  the  influence  that  railways  exert  in  the  creation  of 
vealtb,  and  apply  them  in  a  more  particular  manner  to  those  great 
oationai  works  whicb^  in  the  United  States,  are  to  connect  ocean  with 
ocean,  and  open  to  settlement  and  commerce  vast  tracts  of  the  national 
domain,  now  deserts,  and  which  must  remain  such  till  touched  by  the 
quickening  hand  of  those  mighty  agents,  the  use  of  which  is  the  peculiar 
feature  and  the  glory  of  the  present  age. 

The  use  of  these  agents — the  forces  of  nature — marks  the  dividing 
Hoe  between  the  old  and  the  new.  The  first  use  of  steam,  as  a  motive 
power,  is  within  the  memory  of  the  middle-aged.  Previous  to  1830 
mascular  action  was  the  sole  agent  employed  in   the  movement  on  land, 


*TUt  trt!d«  has  bMn  rerised  for  the  Maoazinb  by  the  writer  who  deUyerod  ttie  iuhitanoo  of  it 
it  the  iMtlfBf  of  Om  Kational  Board  of  Trad*  at  Oindnnati. 

1 


162 


INFLUBNOB   OF   RAILROADS. 


[March, 


botli  of  persons  and  property.  In  ibis  respect  society  had  remained 
stationary  from  earliest  history.  The  great  Alexander  and  th^  great 
Kapoleon  employed  precisely  the  same  means,  in  their  wonderful  marches 
ibr  the  transportation  of  men,  supplies,  and  the  material  of  war.  , 

Under  the  old  regime  the  cost  and  impotence  of  muscular  action  was 
so  excessive  as  to  restrict  commerce  in  the  more  bulky  articles — ariicles, 
too,  of  chiefest  account  in  social  economy,  food  for  example — within  very 
narrow  limits.  Hence  the  extravagant  importance  attached  to  portable 
articles  of  high  value,  such  as  gold  and  silver.  At  an  early  ptrriod,  a 
balf  dozen  of  articles  made  up  the  staple,  almost,  of  the  commerce  of  the 
world.  In  this  matter  the  experience  of  our  own  people  covers  the 
whole  ground.  Our  markets  are  all  within  a  narrow  belt  lying  immediately 
tipOD  th  seaboard.  Previous  to  the  construction  of  improved  hij2;hways 
they  could  be  reached  only  from  a  very  limited  area.  The  report  sub- 
mitted to  the  Legislature  of  the  State  of  New  York  in  181?,  and  which 
led  to  the  construction  of  tbe  Erie  Canal,  stated  the  cost  of  transporting 
a  ton  of  freight,  at  that  time,  from  Buffalo  to  the  City  of  New  York,  to 
be  $100 — a  sum  exceeding  twice  the  value  of  wheat  at  Buffalo,  and  four 
time»  that  of  corn  1    The  time  required  was  twenty  days. 

Such  is  an  illustration  of  the  condition  of  the  internal  commerce  of  our 
country  forty  years  ago.  The  nature  of  the  soil  in  most  of  the  States 
rendered  the  construction  of  ordinary  highways  very  difficult.  Neither 
railroads  nor  canals  existed.  Commerce  was  restricted,  consequently,  to 
water-courses  navigable  by  steamboats,  barges,  and  even  to  batteauz. 
Over  nine-tenths  of  our  inhabited  territory,  the  produce  of  the  soil  was 
without  commercial  value — that  is — the  cost  of  sending  it  to  market  far 
exceeded  the  sum  it  would  sell  for.  The  labor  of  the  farmer,  consequent- 
ly, instead  of  being  directed  to  objects  that  would  produce  the  greatest 
valuo,  was  necessarily  e  nployed  in  the  production  of  nearly  every  article 
going  into  domestic  consumption.  Tho  family  was  obliged  to  be,  in  a 
great  measure  self  supporting.  The  loss  attendant  upon  a  constaot 
change  of  the  objects  of  labor  was  so  great  that  little  more  was  pro- 
duced than  was  necessary  to  meet  the  daily  accruing  wants.  The  accu- 
mulatioa  of  wealth  was  a  process  exceedingly  slow,  and  its  possessors  a 
mere  fraction  of  society.  All  this  is  within  the  experience  of  nearly 
•very  one  that  hears  me.  Each  one  of  you,  of  middle  age,  went  forth 
to  school,  and  from  the  school  to  the  world,  clad  in  home-spun.  You 
could  not  buy  the  product  of  others  because  you  could  not  sell  your  own. 
The  labor  upon  the  farm  in  which  almost  the  whole  nation  was  employ* 
ed  was,  owing  to  the  want  of  those  mechanical  aids  now  so  universal, 
comparatively  unproductive.  There  was  no  stimulus  to  improvements 
for  the  abridgement  of  toil,  beoause,  with  the  existing  state  of  higbwayii 


1869|  IKFLUXNOB   or   RAILROADS.  163 

there  was  hardly  anj  demand,  oat  of  the  iamilj,  for  what  could  be  pro* 
duced« 

Such  is  a  brief  picture  of  the  past— of  the  old  regime,  la  locomotion 
90ciHy  remained  stationary  for  six  thousand  years,  and  till,  within  the 
memory  of  all,  the  forces  of  Nature  came  to  its  aid.  The  power  gained 
by  a  substitution  of  steam  for  muscles,  and  by  highways  of  comparatively 
straight  lines  and  smooth  surfaces,  is  almost  incalculable.  The  locomo- 
tive upoD  the  railway  exerts  the  power  of  two  thousand  horses  upon  an 
ordinary  highway — that  is,  it  will  move  in  a  day  as  many  tons,  one 
mile,  as  two  thousand  horses.  But  the  cost  of  providing  the  two  thou- 
sand horses  and  a  thousand  wagons,  with  that  of  their  maintenance, 
exceeds  tenfold  that  of  the  locomotive  and  cars  of  the  capacity  of  two  thou* 
sand  tons.  With  these  brief  data  the  arithmetic  is  simple,  although  the 
comparative  results  are  most  astounding.  As  incredible  as  tliey  seem, 
tbev  only  mark  the  magnitude  of  the  revolution  which  the  physical 
wences  have  wrought  in  favor  of  man. 

We  have  said  enough  to  show  that  in  this  country  its  internal  com- 
iQ«fce  is  a  creation  of  the   new  agencies  which  the  last  half  century  has 
Ht  at  work.      Our  commerce,  wealth,  and  our  population,  even,   are 
limply  ihe  results  of  the  new  methods.    They  have  advanced  precisely  in 
ratio  to  the  value  and   effijiency  of  the   agencies   we   have  employed^ 
These  ageucies,  wherever  introduced,  have  given  a  market  to  labor  at  ita 
dv'or.    The  corn  that  now  supplies  the  E?istern  market?,    as  well  as  tliose 
of  Europe,  is  grown  more  than   one  thousand   miles  inland.    This  eurn 
vould  not  bear  transportation  over  the  ordinary  roads  of  the  West  more 
thanone  hundred  and  filty  miles.     Over  the   railroad  it  is  bv>rne  seven 
fold  that  distance,  at  the  same  time  producing  an  ample  profit   to  the 
prodncfr.    Wheat  will  bear  a  transportation  three  hundred  and  thirty  miles 
OTiran  ordinary  ro^.    The  great  jiupplies   to   the  Eastern  markets  are 
cow  grown  fifteen  hundred  miles  distant.     But  for  railroads  the  area  from 
vbicfa  the  Eastern  market  could  draw  their  supplies  of  cereals,  without 
an  eoormou sly  increased  price,   would    have   been    upon  a  radius  of  one 
bundredaud  fifty  and  three  hundred  and  thirty  miles,  respectively.     With 
tLese  works,  owing  to  the  economies  that  are  being  daily  made  in  transporta* 
liOD,  every  acre  of  arable  land  on  the  coniinent,  no  matter  how  far  distant 
Iroai  the  great  seats  of  consumption,  may  be  cultivated  with  profit. 

Previous  to  the  opening  of  the  Erie  Canal  in  1627,  the  tonnage  cross- 
iDg  the  Alleghanies  range  in  both  directions,  and  from  the  Lakes  to  New 
^ork,  did  not  exceed  iri,000  tons.  This  tonnage  consisted  almost  whully 
ofmtrchandise  going  West — the  cost  of  transportation  being  a  complete 
bar  to  t'je  movemdnt,  Eaat,  of  Western  produce.  The  only  outlei  of 
^6  interior  was  the  Mississippi  river,  with  its  tributaries,  the  navigation  of 


164 


I5FLUXK0B   OF  RAILROADS. 


[Marehf 


which  was  most  tedious  and  hazardous,  and  so  expensive  as  to  leave  little 
profit,  either  to  the  forwarder  or  producer.  The  opcfning  of  the  Erie 
Canal  was  an  epoch  in  the  commerce  of  the  country,  but  it  exerted,  for 
the  first  ten  years,  but  little  influence  bevond  the  route  immediately 
traversed.  So  late  as  1836,  the  total  amount  of  tonnage  from  the  Western 
States  coming  through  this  channel  to  tidewater,  equaled  only  56,000 
tons.  Before  the  Western  States  could  avail  themselves  of  it  they  had  to 
connect  their  territories  with  it,  and  with  the  Lakes,  by  canals,  or  by  the 
best  earthroads  they  could  construct.  In  1846  the  amount  of  Western 
produce  reaching  tide-water  by  canal  was  419,000  tons.  In  1851,  the 
date  of  the  opening  of  the  Erie  Railroad,  and  the  removal  of  the  restric- 
tions on  the  transportation  of  freight  on  the  New  York  Central  Railroad 
(whi^h  was  first  opened  in  the  Fall  of  1842),the  tonnage  of  Western  produce 
on  the  Canal  had  reached  065,003  tons.  This  tonnage  measured  to  a  very 
great  extent  the  commerce  then  existing  between  the  Eastern  and  West- 
ern States.  In  1867  the  united  through  tonnage  of  tha  five  great  lines 
between  the  two  sections — the  Erie  Canal,  the  New  York  Central,  Erie, 
Pennsylvania,  and  Baltimore  and  Ohio  Railroad — equaled  6,000,000 
tons,  having  a  value  of  $1,200,000,000. 

At  the  date  of  the  opening  of  the  Erie  Railway,  and  the  enfraocbise- 
ment  of  the  Central  Railroad,  there  were  10,000  miles  of  railway  in 
operation  in  the  United  States.  The  total  tonnage  of  the  merchandise 
transported  over  them  could  not  have  exceeded  5,000,000  tons,  of  the 
value  of  $150  per  ton,  or  of  the  aggregate  value  of  1750,000,000.  On 
the  1st  day  of  January,  1868,  the  mileage  of  our  railroads  had  gone  up 
to  80,000  miles.  The  tonnage  of  merchandise  transported  over  them 
equaled  50,000,000  tons,  having,  at  the  above  estimate,  a  value  equal  to 
$7,500,000,000.  In  a  period  of  seventeen  yeara  the  mileage  of  our 
railways  had  increased  nearly  400  per  cent  their  tonnage  1,000  per  cent 
with  a  corresponding  increase  of  value.  The  population  of  the  country, 
in  the  meantime,  had  increased  from  24,000,000  to  86,000,000,  or  at  the 
rate  of  50  per  cent.  In  other  words,  the  increase  of  the  commerce  of 
the  country,  borne  upon  railroads,  has  been  2,000  fold  greater  to  that  of 
our  population.  In  1851,  the  freight  moved  upon  all  the  railroads 
equaled  417  pounds  per  head  of  population.  Its  value  equaled  say  $31 
per  head.  In  1868  the  tonnage  equaled  2,777  pounds  per  head,  haviog 
a  value  of  $210  per  head.  The  increase  of  the  tonnage  of  railroads  for 
the  period  named  has  been  wholly  a  creation  of  these  works,  as  there 
has,  at  the  same  time,  been  a  very  large  increase  of  merchandise  mo?ed 
upon  the  watercourses  of  the  country. 

In  1851  the  cost  of  the  10,000  miles  of  railway  then  in  operation  io 
Che  United  States    equaled    $200,000,000.    In  1868   the  cost  of  the 


\ 


1869]  IKFLIFXHOB  07  RAILROADS.  165 

39,000  miles  equaled  $1,600,000,000.  The  investment  since  1851  of 
$1,400,000,000  consequently,  has  been  the  means  of  an  annual  crea- 
tioa  of  a  commerce  having  a  value  five  fold  greater,  or  (6,750,- 
000,000!  Every  dollar  invested  in  our  railroads  is  the  direct  means  of 
creating,  annually,  five  times  the  amount,  so  marvelously  potent  are  the 
Dew  Agencies  that  science,  within  the  memory  of  us  all,  has  brought  to 
the  aid  of  man.  In  their  use  we  have  at  last  hit  upon  the  method  of 
nature — of  Providence — and  enjoy  in  some  degree  his  infinite  attributes, 
in  wielding,  for  our  own  use,  the  laws  that  uphold  and  control  the 
material  world. 

The  results  achieved  in  a  single  State,  will  be  found,  on  examination, 
to  be  quite  as  striking  as  is  the  aggregate  for  the  whole  nation.  There 
vereia  the  State  of  Illinois  in  1851,  250  miles  of  railway,  the  cost  of 
which  was  about  $7,500,000.  The  tonnage  of  these  roads,  only  just 
opened  could  not  have  exceeded  100,000  tons,  having  a  value,  say 
oril5,000.000.  At  the  close  of  1867  there  were  3,250  miles  of  railroad 
in  operation  in  the  State,  having  a  tonnage  traffic  of  at  least  5,000,000 
tons,  possessing  a  value  of  at  least  $750,000,000.  The  cost  of  the  roads 
equaled  $130,000,000.  The  value  of  the  commerce  transported  over  them 
in  one  year  equaled,  very  nearly,  six  times  their  cost.  In  1851  the  num- 
ber of  pounds  of  merchandise  transported  by  these  roads  equaled  about 
200  pounds  per  head  of  population.  In  1867  the  tonnage  transported 
exceeded  4,000  pounds,  or  two  tons  per  head.  The  value  of  the  tonnage 
per  head  in  1851  was  about  $15 ;  in  1867  it  was  equal  to  $330  per  head. 
This  unexampled  increase  was  wholly  due  to  the  construction  of  railroads, 
u  there  has  in  the  meantime  been  a  very  large  increase  in  the  tonnage 
on  the  water-courses  of  the  State.  It  will  be  borne  in  mind  that  the 
tonnage  of  railroads  of  this  State  consists  almost  entirely  of  the  products 
of  agriculture  which  will  bear  transportion  for  only  a  comparatively  small 
distance,  o/er  ordinary  roads.  These  products  are  now  forwarded,  on  an 
average,  1,200  miles,  before  reaching  a  market. 

The  population  of  Illinois  now  makes  one-fifteenth  of  that  of  the  whole 
country.  It  now  defrays  one-fifteenth  of  the  whole  burdens  of  the  General 
Government.  Its  proportion  of  the  Federal  taxes  equals  $24  000,000 
annually.  Its  ability  to  pay  this  vast  sum  is  almost  entirely  due  to  the 
railroads  that  have  been  constructed  within  it  during  the  past  fifteen 
years.  Toward  their  construction  the  Federal  Government  never  con- 
tributed a  penny.  It  did,  however,  in  1850,  make  a  valuable  land  grant 
to  the  State  in  favor  of  the  Illinois  Central  Railroad,  which  secured  the 
speedy  construction  of  this  great  work,  and  gave  a  wonderful  impulse  to 
the  construction  of  other  important  lines.  The  additional  price  charged 
for  reserved  lands  yielded  to  the  national  treasury  the  same  sum  that 


166  IKFLUBHCE    OF  RAILROADS.  [Moftk^ 

would  have  been  realized  if  the  grant  bad  not  been  niade.  If  by  the  use 
of  similar  means  we  can  create  another  Illinois  so  far  aa  concerns  its 
population,  wealth,  and  value  to  the  Union,  we  shall  in  an  equal  degree 
lighten  the  burdens  resting  upon  us.  A  vigorous  movement  in  this 
direction,  consequently,  is  the  dictate  of  sound  statesmanship,  as  well  as 
of  enlightened  self-interest 

By  what  means  shall  we  repeat  the  example  of  Illinois  t  The  first 
conilition  exists  in  a  vast,  fertile,  and  unoccupied  public  domain.  Bot, 
unlikCf  Illinois,  Iowa,  and  Minnesota,  it  cannot  be  reached  by  navigable 
water-courses,  that  were  the  routes  of  the  pioneers,  and  enabled  tliem  to 
gain  a  foothold  in  these  States,  and  in  time  to  acquire  sufficient  strength 
to  undertake  enterprises  not  necessary  to  the  maintenance  of  their  own 
existence.  But  for  these  water-courses,  the  Mississippi  River,  and  the 
Great  Lakes,  these  States,  to-day,  would  have  been  in  the  condition  of 
the  boundless  unoccupied  plains  of  the  Upper  Missouri,  of  the  Red  River 
of  the  North,  and  of  the  Rio  Grande.  These  States  had  almost  every 
possible  natural  means  of  access.  The  artificial  means  came  in  good 
time.  The  former,  however,  were  tbe  necessary  antecedents  of  the  latter. 
But  for  the  natural,  the  artificial  works  could  never  have  been  constructed. 

Now,  the  proper  duty  and  function  of  the  Federal  GoveriMnent  is  to 
correct  this  oversight  of  nature  in  not  giving  the  means  of  access  to  vast 
portions  of  our  public  domain.  In  place  of  great  water  lines  it  must 
supply  what  is  far  better — a  great  trunk  line  of  railway,  to  enable  the 
pioneers  to  gain  a  foothold  upon  the  soil.  It  is  only  by  me  ans  of  such  works 
that  such  a  foothold  can  be  gained,  and  strength  acquired  sufficient,  as  ia 
the  Western  States,  to  carry  forward  whatever  enterprises  may  be  neces- 
sary and  proper  for  the  promotion  of  their  well-being.  From  the  westem 
end  of  Lake  Superior  to  the  base  of  the  Rocky  Mountains,  some  1,200 
miles,  is  a  vast  fertile  plain,  but  now  wholly  destitute  of  the  meaos  of 
transportation.  The  Missouri,  though  a  valuable  auxiliary  to  a  railway,  is 
of  itself  wholly  inadequate  to  meet  the  commercial  wants  of  the  county 
it  traverses.  A  railway  from  the  lake  to  the  mountains,  which  could  be 
built  at  an  expenditure  of  $20,000,000  by  the  Federal  Government,  would 
open  to  settlement  an  area  five  times  greater  than  that  of  Illinois.  Noiv, 
with  such  an  expenditure  we  should  repeat  Illinois  many  times,  and  just 
as  quick  as  the  movement  of  an  adequate  number  of  people  and  the  crea- 
tion of  new  industries  could  be  effected.  As  already  remarked,  the  arith- 
metic of  all  this  is  perfectly  simple.  Supply  the  means  of  transportation, 
and  the  tide  of  population,  flowing  over  the  new  territory,  will  keep  pace 
with  the  progress  of  the  railway,  so  that,  when  the  mountains  are  reached, 
the  territories  now  deserts  will  present  themselves  to  Congress  with  all  the 
conditions  necetisary  to  entitle  them  to  become  members  of  the  Union. 


1869]  IVFLUSNCB  or  railroads.  16Y 

These  remarks  apply  with  equal  foroe  in  favor  of  a  great  line  of  railroad 
crossing  tlie  contineDt  upon  the  general  routes  of  the  85 th  or  32d  paral- 
lel. In  this  division  of  the  Union  is  a  territory  embradng  raany  hundred 
thousand  square  miles,  large  portions  of  it  of  great  fertility,  and  with  a 
rnsi  mineral  wealth  to  compensate  for  any  barrenness  of  soil,  for  the 
want  of  suitable  highways  utterly  cut  off  from  settlement,  and  from  com- 
merce. Such  a  work  would  give  an  access  to  the  northern  provinces  of 
Mexico,  whose  great  wealth  in  mineral  and  soil  is  well  known,  as  well  at 
to  our  own  territories.  In  this  direction  we  can  repeat,  man/  times; 
Illinois  and  Missouri,  as  well  as  in  the  North.  The  Southwest,  is  the  reg^ioa 
which  is  to  supply  animal  food  and  wool,  while  the  Northwest  is  peculiarly 
adapted  to  the  growth  of  wheat,  which  has  a  very  limited  belt  in  this,  as 
in  the  Old  World.  The  two  sections  are  complements  that  will  supply 
all  the  prime  articles  entering  into  domestic  consumption. 

Such  is  a  plain  statement  of  the  proposition  before  us.  Can  we  afford 
to  allow  vast  tracts  of  fertile  country  to  remain  wastes  simply  for  the 
want  of  a  few  millions  of  dollars,  to  be  expended  in  opening  them  to 
settlement  I  Certainly  not  The  process  of  aiding  such  woiks  will  be  a 
paying  one  from  the  start.  The  Immediate  increase  of  consumption  by 
the  inhabitants  of  the  newly-opened  territories  of  the  manufactures  of  the 
older  States  will  more  than  make  up  the  proportion,  to  the  latter,  of  any 
expenditures  they  may  be  called  to  make;  while  the  taxes  paid  to  the 
Federal  Government  by  the  inhabitanis  of  the  new  Territories  and  States 
will  speedily  repay  all  the  advances  to  be  made.  TV  hen  it  is  considered 
what  Government  would  gain  in  the  transportation  of  troops,  supplieSi 
and  munitions  of  war,  it  is  not  probable  that  it  would  at  any  moment  be 
a  dollar  out  of  pocket,  while  it  is  certain  that  in  a  very  short  time  it 
would  be  repaid,  more  than  tenfold,  for  all  the  advances  made. 

The  experience  already  afforded  by  the  progress  of  the  Union  Pacifie 
Railroad  peifectly  sustains  all  the  positions  I  have  takon.  The  States 
of  Kaneas  and  Nebraska,  from  the  advantages  and  stimulus  supplied  by 
this  great  work,  with  its  branches,  are  fast  repeating  the  example  of 
Illinois.  Their  increase  in  population  and  wealth  is  much  greater  than  was 
that  of  Illinois,  at  a  corresponding  period  in  the  history  of  the  latter. 
No  one  who  examines  the  subject  can  avoid  the  conclusion  that  already, 
in  a  pecuniary  sense^has  the  Government  gained  immensely  by  the  aid  it 
has  extended  to  these  works.  They  have  built  up  two  great  States,  whose 
population  are  the  most  profitable  consumers  of  the  products  of  the  East- 
ero  States,  and  whose  contributions  to  the  national  treasury  far  exceed  the 
interest  on  the  bonds  issued  in  their  aid.  In  a  few  years  such  contribu- 
tions will  annually  exceed  the  principal  of  such  bonds,  when  the  Govern- 
ment will  be  receiving,  annually,  cent  per  cent  upon  the  investment  it  has 
made. 


168  TBS  DARIBK   SHIP   OAKAL.  [March^ 

With  Bucli  demonstrations  before  me,  I  oannot  doubt  the  ezpediencj  of 
further  aid  by  the  Federal  Goyernment  in  opening  up  other  sections  far 
more  fertile  and  valuable  than  that  traversed  by  the  Union  Pacific  Rail- 
road. It  cannot  afford  to  allow  an  acre  of  valuable  soil  or  mineral  to  be 
beyond  the  reach  of  commerce  or  of  human  life.  All  it  has  to  do  is  to 
supply  a  few  great  trunk  lines.  From  these  ofishoots  will  be  carried  by 
private  enterprise  to  every  section,  so  as  to  supply  the  means  of  cheap 
transportation  for  any  tun  of  produce  or  of  mineral  that  may  be  raised. 

THE  BARIEN  SUP  ClNAl. 

BY  J.   O.  BATLB8. 

The  success  which  has  attended  the  mission  of  Mr.  Caleb  Cushing  to 
the  United  States  of  Colombia,  invests  the  discussion  of  the  proposed 
Darien  Ship  Canal  with  a  new  interest.  Of  course  it  cannot,  as  jet, 
be  regarded  as  anything  more  than  a  scheme,  nor  as  much  nearer  a  soc- 
cessful  completion  than  before  the  treaty  was  drawn  up,  for  opposition  from 
the  Colombian  government  was  not  to  be  anticipated.  In  fact,  the  sug- 
gestion of  the  treaty  now  submitted  to  Congress  first  eminated  from  the 
Colombian  Minister  at  Washington  ;  and  con^deriug  the  short  time  found 
necessary  to  complete  the  negotiations,  it  is  evident  that  that  government 
was  quite  ready  to  grant  a  right  of  way.  The  treaty  has  already  been 
submitted  to  Congtess,  by  whijh  it  will  doubtless  be  ratified,  as  it 
imposes,  we  understand,  no  obligations  on  the  government,  and  provides 
for  no  further  expenditures  than  are  already  included  in  previous  approp- 
riations. As  soon  as  the  treaty  is  ratified  it  ia  intended  that  surveys  shall 
be  made,  with  a  view  to  determining  the  most  practical  route  and  esti- 
mating the  probable  cost  of  the  work.  Congress  has  already  appropriated 
$40,000  for  this  purpose,  but  considering  the  difficulties  which  will  inter- 
fere with  the  progress  of  the  expeditions  and  the  time  required  to  thor- 
oughly  determine  the  topography  of  a  country  of  which  so  little  is  known, 
the  amount  needed  must  very  greatly  exceed  the  sum  named. 

The  idea  of  a  canal  across  the  Isthmus  of  Darien  is  more  than  three 
•enturies  old.  It  was  first  suggested  to  Philip  II.  of  Spain  in  1528,  and 
the  plan  then  proposed  was  to  connect  the  Chagres  and  Grande  ri?er8, 
and  so  reach  the  Pacific  near  the  present  cite  of  Panama.  This  route  was 
actually  surveyed,  as  perfectly  as  they  knew  how,  by  a  party  of  Flemish 
engineers,  but  as  many  difficulties  were  found  which,  at  that  time,  were 
considered  insurmountable,  all  idea  of  undertaking  the  work  was  abiin- 
doned.  Nothing  further  was  attempted  until  1826,  when  the  scheme 
was  again  agitated  by  General  Bolivar,  who  made  somewhat  extensive 
explorations  in  the  following  year,  assisted  by  a  corps  of  accomplished 
engineers.    Their  labors  were  not  abandoned  until  three  years  later,  and 


1860]  THl  DARIKK  SHIP  OAHAL.  169 

the  resalt  accomplished  bj  them  was  the  discovery  of  the  important 
&ct  that  a  railroad,  if  not  a  canal,  was  practicable.  The  canal  scheme 
was  again  talked  of  in  1843,  at  which  time  a  series  of  valuable  surveys 
were  made  under  the  auspices  of  Louis  Philippe,  by  N.  Garella,  who 
made  a  very  full  and  valuable  report,  in  which  he  gives  what  he  believed 
to  be  the  most  practicable  route.  Mr.  Oarella's  canal  was  to  have  made 
use  of  the  Chagres  River  for  twenty  miles  or  more,  branching  off  just 
below  the  point  where  it  ceases  to  be  navigable  for  large  vessels.  From 
this  point  it  inclined  North  West  and  reached  the  Pacific  at  the  B  ly  of 
Yaca  de  Monte ;  some  twelve  or  fifteen  miles  above  the  present  city  of 
Panama.  Nothing  further  was  done  in  the  matter  until  1852  and  1855, 
when  various  privileges  were  granted  by  the  New  Granadan  government 
to  Dr.  Black  and  others,  who  proposed  to  organize  a  company  and 
undertake  the  work.  These  parties  never  availed  themselves  of  the 
privileges  granted  them,  however ;  chiefly  because  the  completion  of  the 
Panama  Bailroad,  which  was  begun  in  1850  and  finished  in  1855,  led, 
for  the  time  at  least,  to  the  abandonment  of  the  idea  by  those  on  whom 
it  depended  to  furnish  the  necessary  capital.  But  in  1862  the  matter 
was  again  talked  of.  Colonel  Totten,  the  engineer  of  the  Panama  Rail- 
road, at  that  time  proved  that  the  supposed  difference  in  the  levels  of  the 
Atlanlio  and  Pacific  Ocean  was  a  mistake,  thus  removing  what  had  always 
been  regarded  as  the  most  serious  obstacle  in  the  way  of  building  the 
canal.  Since  that  time,  various  projects  have  been  started,  but  none  of 
them  have  amounted  to  anything  more  important  than  gigantic  schemes 
nith  small  promise  of  realization* 

The  present  movement,  however,  originated  in  the  anxiety  felt  and 
expressed  by  the  Colombian  government  to  secure  the  construction  of  an 
improvement  that  would  greatly  add  to  its  wealth  and  importance,  and 
at  the  same  time  cost  that  government  nothing.  The  Colombian  Minis* 
ter  requested  Mr.  Seward  to  ascertain,  if  possible,  to  what  extent  the 
people  of  the  United  States  could  be  relied  on  for  carrying  out  the  pro- 
ject, and  with  this  object  in  view,  the  Secretary  of  State  arranged  with 
several  prominent  gentlemen  to  call  the  meeting,  which  met  at  the  house 
of  Peter  Cooper,  in  this  city.  Under  a  charter  granted  by  the  New  York 
Legislature,  an  organization  was  effected  and  Commissioners  appointed  to 
receive  subscriptions  to  the  capital  stock  of  ^  100,000,000 — the  amount 
considered  necessary  to  complete  the  work.  None  of  this  amount  has  yet 
been  subscribed,  however,  nor  is  it  likely  to  be  until  something  more  de* 
finite  is  ascertained  by  survey  and  exploration  concerning  the  nature  of 
the  country  and  the  relative  practicability  of  the  several  routes  proposed 
or  suggested.  It  will  be  seen,  therefore,  that  the  company  with  its  cash 
capital  of  (100,000,000,  of  which  we  have  heard  so  much  lately,  is  only 
prospective  as  yet. 


170 


TBI  DAAISir  8HIF   CAKAL. 


[March, 


Although  we  do  not  regard  the  coDstraction  of  a  canal  across  the 
Isthmus  as  by  any  means  an  impossibility,  in  this  age  of  the  world,  we 
doubt  if  the  real  difficulties  in  the  way  of  such  a  work  are  fully  appreciated 
by  any  except  the  very  few  who  by  long  experience  have  become  thor- 
oughly acquainted  with  the  character  and  geography  of  the  country 
through  which  it  is  proposed  to  construct  it.  The  part  of  the  Isthmus 
to  be  crossed  by  the  canal  is  only  thirty-two  miles  in  wic'th,  but  it  is 
traversed  by  the  Cordileras  mountains,  which  present  the  most  serious  of 
the  many  obstacles  in  the  way  of  the  undertaking.  Through  this  range 
of  rocky  and  precipitate  hills,  the  only  pass  as  yet  known  where  a  caoal 
would  appear  to  be  practicable,  is  that  now  occupied  by  the  Panama  Rail- 
road. Some  other  feasible  pass  may  be  discovered  if  extensive  surveys  are 
made,  but  only  at  a  great  expenditure  of  time  and  money.  Several  routes 
are  however  even  now  contemplated,  one  of  which  necessitates  the  cat- 
ting of  a  tunnel  seven  miles  in  length  through  the  mountains,  that  shall 
be  at  least  1 30  feet  in  diameter,  so  as  to  pass  full  rigged  yessels  of  the 
largest  size,  freighted.  This  scheme  appears  to  be  so  wholly  impracticable 
that  it  is  not  likely  to  receive  serious  consideration  from  engineers  or 
capitalists.  Other  routes  have  been  suggested  which  require  no  tunnels, 
but  make  necessary  long  and  deep  cuts  through  solid  rock  at  almost  as 
great  an  expenditure  of  time  and  money.  Whatever  plan,  however,  is 
adopted,  the  canal  must  be  built  through  about  thirty  miles  of  the  most 
difficult  excavations,  and  if  it  is  ever  completed  will  be  one  of  the 
greatest  engineering  projects  ever  undertaken  in  ancient  or  modern  times. 

As  we  before  stated,  the  only  route  at  present  thought  to  be  practic- 
able by  engineers  who  are  acquainted  with  the  topography  of  the  country, 
is  the  pass  now  occupied  by  the  Panama  Railroad,  to  which  the  Colom- 
bian government  has  guaranteed  rights  and  privileges  which  any  other 
company  or  corporation  proposing  to  establish  communication  across  the 
Isthmus  will  have  to  purchase,  or  pay  damages  to  the  railroad  nearly  equal 
to  its  value.  In  the  contract  between  the  Colombian  government  and 
the  Panama  Railroad,  reformative  of  that  of  April  15th,  1850,  it  is  pro 
vided  as  follows: 

The  Ooveromeot  of  the  Repub'ic  birds  itself  daring  the  time  in  wbidb  ths 
ezcluKive  pri?ilpge  which  w  conceded  to  the  Oompaoy  for  the  workios;  of  the  railrotd 
remaintf  in  f  >rce,  not  to  construct  for  itself,  nor  to  concede  to  any  person  or  companj, 
by  any  title  whatever,  thu  power  to  establish  any  other  railroad  on  the  Isthmus  of 
Panama  ;  and  it  also  stipulatej  that  while  the  said  priyilege  coniinuee  in  force  ths 
Oovernuient  sha'l  not  have  the  power  of  niidertaking  for  itself,  nor  of  p<>rmitting  any 
person  to  undertahe,  without  the  concurrence  and  consent  of  said  Coropsoj,  tbs 
opening  or  working  of  any  maritime  canal  which  may  unite  the  two  oceans  scroas 
the  said  Isth-nns  of  Panama,  to  the  westward  of  the  hoe  of  Cape  Tiburoo  oo  tbs 
Atlantic  and  of  Puiot  Garacbine  oo  the  Pacific.  But  it  remaina  stipulated  that  the 
right  which  ia  conceded  to  the  Company  to  give  ita  oooaent  d  tea  not  extend  to  its 
oppoeing  the  construction  of  a  canal  acroas  the  Isthmus  of  Panama  (except  upon  ths 
route  of  the  railroad  itaelf)  but  only  to  ita  exactmg  an  equitable  price  for  socb  a 


1869]  THE  darun  ship  oakal.  171 

privilege  and  as  lodemnificattoa  for  the  damages  which  the  Railroad  GoEopany  mar 
fuff^r  by  the  rivalrj  or  competition  of  the  ranal. 

If  the  aaiii  which  may  be  d  manded  by  the  CompaoY  ihall  nofc  appear  equitable 
to  the  GiivemmeDt  of  the  United  ^Mie%  of  Colombia,  then  it  bqaU  be  fixed  by  arbit- 
rators in  New  York  or  Panama,  one  to  be  named  by  the  Goveromeiit,  th»  other  by 
ihB  Company,  and  in  caie  c»f  their  not  agreeing,  the  two  ehall  natne  alhird,  who*e  de- 
d>ian  rhaii  be  without  appeai.  In  pronouncing  their  decision  the  arbitral  ra  shall 
take  into  c  'Cuideration  the  groupds  upon  which  the  Co  i  pany  rfsts  auil  the  informa- 
tion which  the  Qoreroment  shall  give  upon  the  matter,  anJ  in  view  thereof  shall  de- 
cide, without  appeal,  as  tliey  may  deem  most  just  and  equitable.  The  su  u,  what- 
ew  it  may  be,  which  shall  be  finally  designated,  sh^li  belong  one-haif  to  the 
Bailfoad  Company  and  one- half  to  the  Government  of  Colombia. 

As  the  opening  of  a  ship  canal  across  the  Mhmus  would  of  course 
destroy  the  value  of  a  road  which  has  no  local  traflSc  to  sustain  it,  an 
equiuble  decision  of  the  arbitrators  would  in  all  probability  allow  dam- 
ages to  its  full  value.  It  will  be  seen  that  the  company  baa  the  right 
to  oppose  the  construction  of  a  canal  through  tb<5  pass  in  which  the 
railroad  is  situated,  and  it  would  undoubtedly  avail  itself  of  the  privilege. 
Consideiing  therefore  the  money  required  to  build  the  canal  even  at 
the  most  available  point,  the  cheaoe&t  and  best  course  for  those  propos- 
ing to  undertake  the  work  would  be  to  buy  up  the  railroad.  The 
market  value  of  the  stock  is  now  three  hundred  andfcrty,  and  if  an  eflfort 
was  made  to  purchase  it,  its  value  would  probably  rise  to  four  hundred. 
This  would  make  the  road  worth  twenty-eight  million  dollars  to  the  pur- 
chaseis.  As  soon  as  the  canal  company  controlled  its  affairs,  however,  it 
would  be  able  to  avail  itself  of  the  advantages  ofiftired  by  the  pass  through 
the  mountains  which  that  toad  now  monopolizes.  The  price  it  would 
cost  would  be  well  invested,  since  in  building  the  canal  on  the  line  of  the 
road,  the  company  would  save  from  fifty  to  one  hundred  million  dollars, 
at  least  in  making  surveys  and  in  moving  the  material  necessary  for 
the  woik.  The  pretended  surveys  of  another  route  by  Lacharme — an  ac- 
count of  which  is  published  in  the  March  number  of  Putnam's  Magazine 
—are  deserving  of  but  little  credence.  Many  of  the  calculations,  particu- 
larly those  of  the  attitude  of  the  proposed  upper  levels,  are  very  incorrect, 
as  tbey  were  made  with  an  old  and  valueless  barometer  belonging  to  the 
railroad  company,  upon  which  its  owners  had  long  ceased  to  place  any 
dependence.  In  one  instance  where  Lacharme  reports  an  attitude  of  less 
than  three  hundred  feet,  more  acurate  snd  trustworthy  surveys  show 
nearly  i\x  hundred.  We  merely  mention  this  incidentally,  in  order 
that  the  friends  of  the  project  may  not  be  led  to  under  estimate  the 
difiicnUies  in  the  way  of  carrying  it  out  successfully. 

Of  course,  as  wo  have  already  stated,  we  do  not  regard  the  cutting  of 
ft  canal  across  any  part  of  the  Isthmus  as  an  impossibility.  Money  and 
mosde  can  all  accomplish  anything  in  the  way  of  grand  material  enter- 
prises, and  modern  engineering  (kill  can  remove  mountains  or  fill  up  the 


172 


TBK  DARIBK  SHIP   CANAL. 


[Ifarck, 


sea — if  menns  and  men  enough  can  be  found  to  prosecute  the  work 
The  only  question  is,  how  can  it  be  done  so  as  to  make  it  pay  for  any 
government  or  association  of  private  individuals  to  undertake  the  work. 
To  settle  this  great  question  we  should  first  familiarize  ourselves  with  the 
difBculties  to  be  encountered ;  for  it  is  no  trifle  that  is  proposed.  With 
the  purpose  of  helping  to  form  a  judgment  on  the  money  question,  we 
have  already  referred  to  some  of  these  difficulties;  but  there  are  others 
besides  those  which  engineering  skill  can  finally  overcome  or  remove. 
A  liberal  expenditure  of  money  and  muscle  could,  no  doubt,  accom- 
plish the  work  in  the  course  of  fifteen  or  twenty  years:  but  the 
former  could  be  procured  far  more  readily  than  the  latter.  Per- 
haps the  greatest  hindrance  to  the  successful  prosecution  of  the  work 
will  be  the  want  of  suitable  laborers.  These  must  be  procured  in  large 
numbers,  and  as  the  few  natives  of  the  country  are  not  worth  employing 
at  any  price,  the  necessary  force  can  only  be  procured  from  other  coun- 
tries. In  determining  from  whence  this  supply  could  be  drawn,  the 
experience  of  those  engaged  in  building  the  Panama  Railroad  is  of  much 
value  and  importance.  Thev  found  so  many  hindrances  in  the  way  of 
procuring  labor  as  almost  to  prnvent  the  completion  of  the  work.  It 
was  first  undertaken  with  the  assistance  of  such  natives  as  could  be 
procured.  This  small  force  was  supplemented  by  a  party  of  ne^ros  from 
Carthagena — not  exceeding  fifty  in  number.  About  fifty  Irishmen  were 
also  obtained  at  the  same  time,  and  later  a  considerable  force  of 
mechanics  and  laborers  arrived  from  Jamaica,  Carthagena  and  the  United 
States.  In  August,  1850,  the  number  employed  in  the  surveys  and 
construction  was  about  400  men ;  but  sickness,  caused  by  exposure  to 
incessant  rains,  and  the  efifects  of  an  atmosphere  saturated  with  malarial 
poisons,  made  such  inroads  that,  in  a  few  wet-ks  more  than  half  their 
number  were  on  the  sick  list.  The  ravages  of  the  fever  caused  also  the 
desertion  of  such  a  large  proportion  of  the  remnant,  that  the  work  was 
temporarily  suspended.  A  fresh  supply  of  natives  having  been  recruited 
from  the  surrounding  country,  the  work  was  once  more  started.  To  sus. 
tain  the  force,  however,  it  was  necessary  to  procure  laborers  from  every 
part  of  the  world — Irishmen,  Coolies,  Chinese,  English,  French,  Germans 
and  Austrians,  amounting  in  all  to  over  seveb  thousand  men.  With  this 
force  it  was  supposed  that  the  time  required  to  complete  the  work  would 
be  in  a  ratio  propotionate  to  the  numnrical  increase  of  laborers,  all  of 
whom  were  believed  to  be  able-bodied  men.  It  was  found,  however,  that 
many  of  these  people,  from  previous  habits  and  modes  of  life,  were  totally 
unsuited  to  the  work  for  which  thej  were  engaged.  The  Chinese,  one 
thousand  of  whom  had  been  imported  by  the  company,  were  greatly 
depended  on,  and  every  arrangement  was  made  for  their  health  and  com- 


1869]  TBS  DARISK   8HIF   OAVAL.  l78 

f 

ort  But,  notwittstanding  the  carefal  treatment  tbey  received,  they 
became  disaffected  in  less  than  a  month,  a  large  proportion  of  them 
ending  their  liyes  bj  suicide,  and  the  remainder  becoming  of  little  use  as 
workmen.  Disease  broke  out  among  them  and  raged  so  fiercely  that,  in 
a  few  weeks,  less  than  two  hundred  remained.  The  Irishmen  and 
Frenchmen  also  suffered  so  severely  that  it  was  found  necessary  to  send 
them  home  as  quickly  as  possible  and  supply  their  places  with  negroes 
from  Jamaica,  who  also  proved  to  be  of  little  use  as  workmen,  though 
best  able  to  resist  the  influence  of  the  climate.* 

The  difficulty  of  procuring   suitable  laborers  for  the  canal  would  of 
course,  be  far  greater  than  that  experienced  by  the  builders  of  the  rail- 
road.    The  work  of  grading  the  surface  and   laying  a  single  track  of 
less  than  ^fij  miles  in  length,  is  a  mere  trifle  compared  with  the  labor  of 
cntUng  a  ship  canal  over  or  through  the  mountains.    The  engineer  of 
the  railroad,  basing  his  claculations  on  his  own  experiences  and  a  thorough 
knowledge  of  the  topography  of  the  country,  believes  that   15,000  men 
could  build  the  canal  in  twenty  years,  or  20,000  men  build  it  in  fifleen 
years,  providing  the  active  working  force  were  kept  up  to  that  number  by 
constant  additions  of  fresh  recruits.    This  would  require  an  aggregrate 
of  more  than  200,000  able-bodied  men,  allowing  for  the  probable  desertion, 
uckness,  and  mortality.    The  poisonous  malaria  that  renders  the  climate 
of  Central  America  fatal  to  whites  is  so  2;enerally  known  that  it  would 
be  difficult  to  induce  many  Americans  to  engage  in  the  work,  even  if  the 
most  liberal  pecuniary  inducements  were  offered.    Natives  could  not  be 
procured  in  sufficient  numbers ;  Europeans  would  not  be  able  to  stand  the 
fatal  influence  of  the  climate ;  Coolies  and  Chinese  would  not  be  profitable 
(if  the  experience  of  the  railroad  is  to  be  taken  as  the  test),  and  Jamaica 
negroes  are  not  worth,  as  laborers,  the  cost  of  maintaining  them.    The 
only  source  then  from  which  it  would  seem  probable  that  a  suitable  force 
of  good  workmen  could  be  obtained,  is  Africa,  and  if  it  should  be 
necessary  to  press  them  into  the  service  we  should  be  reviving  the  most 
objectionable  features  of  the  old  slave  trade.    To  do  this  would  not  only 
require  the  consent  of  the  United  States,  but  of  every  European  nation, 
and  if  carried  out  would  establish  the  dangerous  precedent  of  a  recognized 
and  open  slave  trade. 

But  besides  these  difficulties  in  the  way  of  the  construction  of  the  canal, 
others  exist  touching  its  practicability  when  finished.  Of  these  the 
most  important,  perhaps,  is  that  it  would  be  available  for  steamers  only ; 
it  being  evident  that,  under  ordinary  circumstances,  sailing  vessels  could 
go  round  the  horn  more  safely  and  profitably.  The  reason  for  this  is 
that  vessels  would  not  only  have  to  be  towed  through  the  canal,  but 


•  See  •*  Istlimiui  of  Fsiiams,^  by  F.  N.  Otis,  pp.  U-66. 


174 


TQB  DARIBN   SHIP   CANAL. 


\^Marehf 


before  tliey  could  be  fairly  started  on  their  voyage  across  the  Pacific  it 
would  be  necessary  to  tow  them  at  least  two  hundred  miles  out  to  sea. 
That  entire  section  of  coast,  from  the  Equator  to  15°  Korth  latitude, 
may  be  said  to  be  free  from  wind  available  for  sailing  vessels  wisUog 
to  fro  in  any  particular  direction.  Geographically,  it  is  known  as  the 
region  of  the  Southeast  and  Southwest  monsoons,  and  extends  from 
about  9°  South  latitude  to  the  Equatorial  calm  belt,  which  touclies  the 
Western  coast  of  the  Isthmus  of  Tebauntepec,  about  15*^  north  latitude, 
and,  longitudinally,  from  78*^  to  119®  West  from  Greenwich,  including 
the  entire  West  coast  of  Central  America,  l);irien,  Columbia,  and  Ecua- 
dor. During  the  greater  part  of  tho  year  this  is  a  region  of  perpetual 
calms,  or  light  baffling  winds,  that  are  too  fitful  and  uncertain  to  be 
relied  on  by  shipmasters.  To  avoid  this  it  is  necessary  for  vessels  follow- 
ing the  coa.st  from  Cape  Horn  to  San  Francisco  to  keep  at  least  200 
miles  to  sea  to  avail  themseUes  of  the  Northeast  and  Southeast  trade 
winds.*  This  fact  renders  the  port  of  Panama  fir  better  adapted  to 
steamers  than  sailing  vessels,  the  latter  sometimes  being  six  or  ei(>lit  weeks 
in  getting  out  of  the  bay  and  into  the  Northeast  trades.  Tun  is  not 
always  the  case,  for  vessels  often  work  out  with  the  loss  of  a  few  days 
only:  but  during  the  greater  part  of  the  year  it  would  be  necessary  to  take 
the  sailing  veasels  going  through  the  canal  as  far  out  to  sea  as  we  have 
already  said,  if  it  was  proposed  to  make  that  trip  much  shorter,  in  point 
of  time,  than  the  less  direct  route  round  the  Ilorn.  As  this  could  never 
be  made  to  pay,  considering  the  canal  toll,  the  cost  of  towage,  and  the 
increased  insurance  premiums  over  rates  charged  on  vessels  keeping  in 
open  sea,  sailing  vessels  would  find  it  safer  and  more  profitable  to  follow 
the  old  route. 

If  what  we  have  said  be  correct,  the  canal  prospect  does  not  promise  very 
favorably  as  a  business  speculation.  We  have  seen  that  the  engineering 
diflSculties  are  very  greai  and  can' only  be  overcome  at  a  large  expendi- 
ture of  time,  labor  and  money ;  tliat  the  obtaining  of  the  necessary 
supply  of  labor  will  also  be  an  extremely  serious  problem  for  sjlution ;  and 
that  afler  the  canal  is  completed  it  is  not  likely  to  be  available  for  any- 
thing but  steam  vessels.  Tbe  practical  question  arises,  therefore  will  it 
pay  for  any  company  of  private  individuals,  or  for  any  single  government 
to  undertake  the  work.  .  It  appears  to  us  that  it  will  not.  Besides,  we 
already  have  a  railroad  across  the  Isthmus,  and  expect  within  a  few 
months  io  see  our  own  Pacific  road  completed,  thus  again  uniting  the  two 
oceans.    The  building   of  the  canal   would  certainly   be   a    magnificent 


•  8m  lUvy'i  **Fh7iicsl  Qeographj  of  the  Sea,'*  PUte  YIIL 


1869J  OUB    TOEtSIOK   nffDBBTXDNBSS.  1^5 

project,  but  with  this  grand  highway  across  our  own  country,  is  it  a  plan 
upon  which  our  government  or  people  can  look  with  very  great  interest 
as  promising  sufficient  benefit  to  them  to  warrant  the  necessHry  outlay  f 
And  if  it  will  neither  prove  to  be  a  remunerative  investment  to  the 
stockholders,  or  to  the  country  at  large,  wherein  consists  the  motive  for 
engap;ing  in  the  work  at  present)  Far  better  would  it  be  that  all  tbe 
maritime  nations  of  (he  world  should  undertake  it  and  hold  it  as  a  joii  t 
property,  to  be  free  to  the  trade  of  all,  and  only  such  tolls  chnrged  as 
may  be  necessary  to  meet  the  expense  of  maintaining  and  ^epairin^(  the 
worb.  Until  this  is  done,  or  until  it  can  be  done  in  that  way,  it  would  seem 
to  be  better  for  us  to  turn  our  attention  to  improving  the  facilities  of 
the  Panama  Railroad  by  laying  additional  tracks,  providing  ample  wharf- 
age at  the  termini  and  reducing  the  charges  on  freight,  and  aUo  in  devel- 
oping our  own  Pacific  roads  and  reaping  the  advantages  they  place  within 
oar  reach.  A  large  share  of  the  more  valuable  Eastern  trade,  and  very 
nearly  all  the  Eastern  travel  will  soon  seek  this  latter  route,  and  with 
increased  facilities  and  lower  freights  on  the  Lthmus  road,  the  necessity 
for  a  canal  would  be  greatly  diminished. 


OUR  FOSEION  INDEBTEDNESS— ITS  ADTANTIGES  AND  DISADTANTA6ES. 

It  seems  anomalous  to  question  whether  it  is  fortunate  or  unfortunate 
for  a  country  that  its  ciedit  should  appreciate.  This  very  question,  how- 
ever, would  appear  now  to  be  seriously  entertained  among  eome  of  our 
own  people,  in  connection  with  the  export  movement  of  government 
bonds ;  and  the  answer  is  by  no  means  so  universally  affirmative  as  might 
be  supposed. 

For  the  last  five  or  six  years  Europe  has  been  a  steadybuyer  of  our 
securities — national,  State  and  corporate ;  but  principally  nationnl.  Accord, 
ingtotbe  most  careful  estimates,  about  $700,000,000  of  United  States 
bonds  and  (300,000,000  of  other  securities  are  now  held  abroad,  four, 
fifths  of  which  have  been  sent  out  since  1862.  For  two  years,  we  have 
been  supposing  that  the  limit  of  this  remarkable  investment  demand  had 
been  reached ;  and  yet  the  absorption  continues,  the  export  of  bonds  and 
stocks  at  this  moment  being  nearly  as  active  as  over.  The  prospect  of  a 
more  conservative  administration  of  public  afikirs,  the  earnest  desire  for 
an  early  resumption  of  specie  payments,  the  better  comprehension  of 
questions  of  finance  in  Congress,  the  strong  probability  that  the  principal 
of  the  Five-Twenty  bonds  will  be  declared  to  be  payable  in  coin  or  its 
equivalent,  and  the  avoidance  of  an  apprehended  commercial  revulsion 
following  the  war;  these  circumstances  have  combined  to  beget  abroad  a 


176 


OUR    TORBIGir  nrDBBTlDNKSB. 


[Mard, 


steady  growth  of  confidence  in  American  investments ;  and  as  our  credit 
has  improved  our  securities  have  been  more  in  demand.  Within  the  pres- 
ent month,  probably  not  less  than  (40,000,000  of  bonds  and  stocks  bs?6 
been  sent  to  Europe,  mainly  in  response  to  direct  orders;  Five-Twentieft. 
have  sold  in  London  at  81i,  and  from  the  tenor  of  foreign  advices  yet 
higher  prices  and  further  orders  are  to  be  early  expected. 

It  is  not  onr  present  purpose  to  conjecture  how  much  further  this 
extf  aordinary  demand  may  be  carried;  European  capitalists  appear  to 
have  formed  a  different  estimate  of  our  credit  from  that  they  once  enter- 
tained ;  and  there  is  no  more  reason  apparent  for  supposing  that  tbey 
have  reached  the  limit  of  their  investments  than  existed  two  or  three 
years  ago.  At  home,  this  outflow  of  securities  is  very  generally  deemed 
a  misfortune  to  the  country.  In  certain  respects,  it  is  undoubtedly  to 
be  regarded  in  that  light ;  but  we  think  a  bioad  view  of  the  subject  will 
show  that  the  movement  is  not  without  important  compensations.  The 
securities  have  generally  been  purchased  at  a  heavy  discount  from  par 
in  gold ;  and  such  as  may  be  liquidated  after  the  resumption  of  specie  pay- 
ments, having  to  be  paid  in  full  in  gold,  will  of  course  involve  the  return 
to  Europe  of  a  much  larger  amount  of  funds  than  we  have  received  upon 
them.  This  consideration  is  especially  important  in  its  bearing  upon 
United  States  bonds.  Supposing  that^  upon  the.  $700,000,000  of  govern 
ments  held  abroad,  we  have  received  on  an  average  C8  per  cent  in  gold 
our  total  receipts  therefor  would  be  represented  by  $475,000,000,  which 
is  $225,000,000  less  than  we  should  have  to  pay  to  the  holders  on 
redeeming  the  obligations.  But  before  counting  this  as  so  much  unqaali- 
fied  loss,  we  must  assume  that  the  bonds  will  be  finally  liquidated  at 
maturity.  Let  it,  however,  be  supposed  that,  before  or  after  the  expira- 
tion of  the  twenty  years  limit,  it  should  be  attempted  to  substitute  a  secu- 
rity bearing  a  lower  rate  of  interest ;  a  great  advantage  would  then  accroe 
from  the  fact  of  the  obligations  being  held  abroad  instead  of  at  home. 
As  a  rule,  capital  has  been  worth  2  per  cent  more  interest  in  the  United 
States  than  in  Europe ;  and,  in  the  event  of  the  Government  credit  being 
well  sustained,  it  would,  for  this  reason,  be  feasible  to  dbpose  of  new 
bonds  to  foreigners  at  a  lower  rate  of  interest  than  would  be  acceptable 
at  home.  The  fact  of  our  having  a  foreign  market  for  bonds,  at  a  com. 
paratively  lower  rate  of  interest,  would  also  materially  facilitate  the  mar- 
keting of  such  bonds  at  home ;  thereby  promoting  a  saving  of  interest 
upon  the  whole  public  debt.  The  economy  of  interest  thus  arising 
from  the  circumstance  of  a  large  portion  of  our  bonds  being  held  abroad 
would,  in  the  course  of  a  few  years,  fully  compensate  for  the  less  arising 
on  the  payment  of  the  principal ;  the  extent  of  this  economy  is  apparent 
when  it  is  considered  that  a  reduction  of  1  per  cent  in  the  rate  of  interest 
on  the  whole  debt  amounts  to  $25,000,000  per  annum. 


1869J  OUR  TORBIGir  INDIBTSDfflBS.  177 

At  present,  ve  pay  Europe  about  $40,000,000  in  gold,  annually,  tii 
interest  upon  governoient  securities.  This,  of  course,  is  so  much  taken 
out  of  the  country  in  the  form  of  products,  or  gold.  But  before  we  can 
pronounce  it  a  loss  to  the  country  at  large,  it  must  be  remembered  that  it 
is  tbe  consideration  paid  for  the  use  of  capital  loaned  in  return  for  obliga- 
tioDs  sent  out.  This  brings  us  to  the  gist  of  the  question  :  does  the  real 
capital,  consisting  of  various  products  received  in  exchange  for  tlie  secu- 
rities, constitute  under  all  the  circumstances  a  fair,  competent  and  remu* 
nerative  equivalent!  The  bonds,  had  they  been  held  at  home,  would 
bave  been  in  no  sense  productive.  They  would  have  helped  to  increaes 
the  idlj,  or  non-productive  class  of  population.  The  holders,  instead  of 
actively  employing  capital  for  reproduction,  would  have  been,  inactive 
ooDSumers,  helping  to  diminish  and  doing  nothing  to  increase  the  common 
stock  of  products.  Instead  of  this,  we  have  exchanged  the  bonds  for 
varioDS  commodities,  some  destined  for  immediate  consumption,  others 
constituting  a  part  of  our  more  permanent  capital,  and  most  going  to 
reinforce  the  general  productive  resources  of  the  country.  While,  there- 
fore, in  these  transactions,  Europe  has  invested  in  credits,  we  have  in 
vested  in  such  productive  capital  as  our  wants  have  called  for.  The 
question  whether  the  exchange  is  one  advantageous  to  our  side,  depends 
npon  the  farther  question  whether  we  realize  and  shall  hereafter  realize 
more  upon  the  capital  thus  received  than  we  have  to  pay  in  interest,  and 
ID  the  difference  on  principal  to  the  foreign  bondholders  ?  The  fact  of 
our  having  kept  up  these  exchanges  for  a  period  of  six  years  implies 
that  there  is  an  advantage  somewhere;  for  large  transactions  between 
different  countries  are  not  apt  to  be  long  continued  without  mutual 
advantage.  Nations engai^ed  in  exhaustive  wars  invariably  find  it  better  to 
borrow  abroad  than  at  home,  for  the  reason  that  they  can  thereby  replace 
the  actual  waste  resulting  from  hostilitiea,  and  that  they  can  afford  to  pay 
interest  for  the  use  of  it.  When  such  loans  are  made  under  the  pressure 
of  war  necessities,  the  rate  of  interest  is  apt  to  be  bejond  what  can  le 
realized  upon  the  use  of  the  capital  received.  But,  in  our  case,  the  larger 
^portion  of  the  securities  sent  abroad  were  not  exported,  properly  speaking, 
under  a  war  pressure,  but  voluntarily,  and  from  those  considerations  of 
oommercial  advantage  which  regulate  ordinary  business  exchanges;  and 
for  this  reason  our  foreiofu  transactions  in  bonds  are  the  less  likelv  to  be 
di&adrantagous.  The  truth  is  that  productive  capital  yields  in  the  United 
States  a  larger  return  than  in  Europe  ;  and  the  circumstance  of  our  having 
exchanged  f^och  an  immense  amount  of  securities  for  European  capital  is 
only  the  natural  result  of  th«8  fairt.  Hence,  instead  of  having  the  socia 
and  political  evils  growing  out  of  a  large  bondholding  class,  we  shall  have 
a  healthy  reinforcement  of  the  industrial  and  mercantile  elements  which 

2 


TB  OOR  BOKM  at  BOU  A^D  IBBOAD.  [i(pr 

i;  at  tbe  bub  of  onr  polidcal  Mcuritv,  nod  of  our  commercial  pro^i 
id  grea(ne«B. 

Some  iacidental  erila,  however,  liara  doubtteu  visea  from  tbe  (no] 
ith  wlich  we  have  been  able  lo  market  our  tecurilies  abroad.  So  long 
e  could  eichange  credita  for  merchandise  there  has  been  the  Ie»  press 
tenforoe  that  economy  in  private  eipendiiarei  which  shonld  be  practi: 
f  every  people  after  tbe  loeaes  of  a  great  war.  Growing  oat  of  1 
lere  hat  alio  been  a  tardioees  in  reducing  the  public  eipenditures  i 
1  taking  measures  to  allay  the  general  eilravagance  and  inflatiiii.  Tfa 
rils,  however,  aru  of  a  character  wbich  tend  to  workout  their  own  reme 
Ithin  a  reasonable  time;  and  already  tliey  a'«  in  process  of  correct 
Ni  the  other  band,  our  ability  to  »hip  bonds  has  supplied  an  elemenl 
lasUoity  in  oar  foreign  eicbanges  witbout  nbich  we  might  have  incni 
n  exhauslivti  drain  of  gold,  indefinitely  postponing  tbe  recovery  of 
)ecie  basis  and  producing  panic  and  a  protracted  prostration  of  bnun 
.  is  very  commoDly  urged  that  tbe  fncL  of  sucb  a  large  amount  of  ' 
icniitiea  being  held  abroad  exposes  us  to  a  Eudden  drain  of  gold,  throi 
leir  retnm  upon  tbe  outbreak  of  pHnio  or  war  in  Europe  or  at  ho 
i  is  qnite  certain  tbat  tuoh  occurrences  might  for  the  time  seriously  aC 
le  value  of  our  securities ;  but  tbey  woultl  be  returned  here  only  in 
tent  of  prices  being  highest  in  tbe  boms  market — a  condition  of  thi 
hich  would  not  continue  alXer  the  amount  of  bonds  returned  was  m 
t  to  serionsly  endanger  tbe  equilibrium  of  our  foreign  exchanges. 

For  the  foregoing  reasons  we  are  inclined  to  regird  our  fore 
idebtednesB  as  being  less  an  evil  than  man/  anppoae. 


ODR  BORDS  AT  HOIB  AND  ABIOAD. 

(cohhdhicated.) 

The  extraordinary  advance  of  tbe  last  four  weeks,  and  especially  of 
at  ten  days,  in  the  price  of  our  bonds  both  in  London  and  Frankfor 
]  question  ably  tbe  moat  important  financial  event  of  the  present  day- 

not  only  a  very  gratifying  evidence  of  tbe  faith  and  confidence  of  £>: 
3an  capitalists  in  tbe  general  soundness  of  our  condi^on  and  in  tbe  pi 
pies  and  practice  of  tbe  incoming  administration,  but  also  widely  io 
ices  tbe  course  and  cbaracter  of  our  entire  foreign  trade,  bringing 
ce  to  face  with  some  of  the  most  important  problems  connected  w 
le  return  to  specie  payments. 

In  the  first  place,  tbe  present  prices  and  the  eagemeas  with  which 
mda  are  bought  at  the  quotations,  forever  set  at  rest  the  asaertion 
sqnently  repeated  by  advene  interests  liere  and  abroad,  tbat  theae  w 


1869]  OUR  BONDS  AT  BOMl  AND  ABROAD*  179 

rliies  conld  never  advance  beyond  a  certain  price,  and  would  alwava  rank 
with  the  low-prced  securities  of  semi-bankrupt  States  like  Spain,  I^Iji 
Greece  and  Turkey.  We  bad  heard  this  asserted  so  often  and  so  positively* 
that  many  persona  here  had  begun  to  beliove  it,  and  looked  upon  any  rise 
beyond  72  or  78  as  the  result  of  artificial  movements  and  as  impossible  to 
be  maintained.  The  present  quotation  in  London  is — with  the  difference  of 
exchange  added— equal  to  more  than  90  in  gold  and  indicates  pretty  con- 
clnsively  that  we  may  reasonably  look  for  quotations  at  par  at  some  not 
very  distant  day. 

In  the  second  place  the  advices  by  letter  and  cable  advising  a  small 
supply  upon  the  market,  and  few  bonds  offered  for  sale  with  an  active 
demand,  prove  that  neither  the  ability  nor  the  disposition  to  invest  is  as 
yet  exhausted,  and  that  in  all  probability,  if  the  relative  positions  of  the 
two  markets  admit  of  it,  there  will  be  further  shipments  of  bonds  during 
coming  months,  in  addition  to  the  large  amounts  lately  gone  forward.  It 
is  scarcely  possible  to  over-estimate  the  importance  of  such  movement  ia 
its  influence  upon  our  foreign  exchanges  especially  at  this  season  of  the 
year,  when  a  considerable  portion  of  our  grain  and  cotton  crops  yet  remain 
to  be  exported.  Whether  further  bond  shipments  will  or  will  not  shortly 
take  place  must  of  course  depend  entirely  upon  the  relative  position  of  the 
Earopean  markets  and  our  own.  No  matter  how  high  prices  may  go  on 
the  other  side,  no  bonds  will  be  shipped  unless  there  is  a  profit  in  the  ship- 
ment, unless  they  can  be  bought  here  below  the  London  and  Frankfort 
quotations.  So  far,  the  market  has  promptly  followed  and  at  times  even 
led  the  foreign  market,  and  the  supply  of  the  exportable  bonds  has  been 
•0  limited  and  the  price  so  firm,  that  the  export  has  been  much  nmaller 
than  it  otherwise  would  have  been.  Assuming  that  the  investment  demand 
will  continue  on  the  other  side  at  rising  prices,  it  behooves  us  to  consider 
in  how  far  our  markets  can  meet  the  demand. 

The  mo.«t  important  element  in  this  enquiry  is  the  prico  of  the  bonds 
here.  What  price  are  Americans  themselves  willing  to  pay  for  their 
bonds!  The  average  price  of  the  various  issues  of  six  per  cent  gold  bonds 
for  the  last  three  years  has  been  about  106,  that  is  to  say,  a  bond  bear- 
ing six  dollars  annual  gold  interest,  could  be  bought  or  sold  for  about  one 
huodred  and  six  dollars  in  currency.  The  average  price  of  gold  during 
tiie  last  three  years  has  been  as  near  as  may  be  140.  The  six  dollars  gold 
interest  paid  by  the  Treasury  on  each  one  hundred  dollar  bond,  if  sold  at 
the  average  premium  during  that  time,  brought  to  the  owner  of  the  bond 
eight  dollars  and  forty  cents  in  currency.  A  bond  costing  one  hundred  and 
six  dollars  in  currency  produced  an  annual  income  of  eight  dollars  and 
forty  cents  in  currency,  or  as  nearly  as  possible  eight  per  cent.  In  other 
words,  an  investment  in  United  States  bonds  has,  during  the  last  three 


ISO  Omt  BOVDB  AT   HOUZ  AKD   IBKOAD.  [JfoK 

yean,  paid  tbo  inveitor  about  eight  per  cent  per  anoum,  free  of  risk  a 
^«e  of  tax,  During  the  period  Dameil  there  have  been  many  ftuctuatia 
in  the  price  of  the  bonds,  due  to  varj^iog  political  conditionB  and 
changes  in  the  course  of  the  money  markets,  but  none  of  them  hare  be 
BofiGdently  important  to -materially  alter  the  proportions  named.  T 
premium  on  gold  has  likewise  fluctuated  largely,  butlhe  price  of  the  bon 
has  generally  fluctuated  vith  the  gold  premium,  ao  that  the  change,  whett 
in  the  price  of  bonds  or  in  the  premium  on  gold,  baa  never  very  widi 
changed  the  result,  vis  :  that  the  United  States  bonds  could  be  bou; 
.  at  a  price,  which  pays  the  investor  about  eight  per  cent  net  interest 
bia  investment.  Id  other  woros,  the  experience  of  the  last  three  ye 
shows  that  our  per-pln  tijive  not  been  nilliag  to  pay  forthese  bonda  mi 
more  than  a  price  which  euabled  them  to  make  on  an  average  eight  j 
cent  net  interest  on  their  iDvestment. 

Will  it  be  possible  hereafter  to  realise  eight  per  cent  net  interest 
an  investment  in  bonds  t  It  is  very  evident  tiiat  at  the  present  pri 
here  and  the  present  premium  on  gold,  the  investment  will  not  pay  mi 
BiMch  less  eight  per  ceoL  Tne  latter  figure  can  only  be  realised  bf 
adv&Doe  in  gold,  which,  though  at  all  times  possible,  does  not  seem 
present  reasonably  probable  white,  the  active  demand  for  bonds  contio 
■broad.  Besides,  if  gold  were  to  advance,  with  the  price  of  boodi 
Europe  remuning  the  same,  our  quotations  in  currency  would  correspo 
inglj  advance  so  that  the  question  of  interest  would  remain  uncfaso^ 
It  is  not  probable,  therefore,  that  investors  will  look  to  a  riaing  g 
market  to  improve  their  investment.  Will  American  investors,  then,  c 
tiune  to  hold  United  States  bonds  if  they  can  only  realise  from  tb 
seven,  or  even  six  per  cent,  on  their  investment  1 

Many  writers  appear  to  believe  that  buyers  of  bonds  have  herelol 
expected  to  make  a  bigb  rate  of  interest  mainly  on  account  of  the  tIeIc 
at  least  the  periodical  fear  and  threat,  of  ultimate  repudiation,  and  for 
farther  risk  of  depreciation  by  a  reduction  in  the  interest  rate.  T 
maintiun  that,  if  it  bad  always  been  dearly  established  by  law,  that 
principal  and  interest  were  payable  in  gold,  and  that  no  compulsory  fu 
ing  at  a  lower  rate  of  interest  could  be  attempted,  that  then  iuves 
would  bave  been  well  satisfied  to  make  less  interest  on  their  investmi 
For  oniselves,  while  admitting  at  all  ^mes  the  importance  of  remov 
any  doubt  as  to  the  terms  and  conditions  of  the  bonds,  we  do  not  beli< 
that  the  doubt  has  ever  seriously  affected  tiie  domeatic  inveatmi 
demand.  We  believe,  on  the  contrary,  that  our  own  people  genen 
have  bought  the  bonds  with  great  confidence,  without  any  serious  fc 
of  repudiation,  and  that  the  great  hulk  of  the  bonds  were  bought,  I 
any  other  first^luK  security,  because  they  paid  a  handsome  interest 


1869)  TBB  LBGAL  TXNDSB  DBOIBIOKS.  181 

the  iDvestmeDt  In  contradiction  of  this  belief  we  are  frequently  referred 
to  the  high  prices  of  certain  State  securities,  which  pay  no  higher  rate  of 
interest  than  United  States  bonds,  yet  sell  fifteen  or  twenty  per  cent 
higher,  or  of  rarioas  kinds  of  railroad  bonds,  which  pay  only  six  per 
cent  interest  in  currency,  yet  sell  not  much  below  the  gold  bonds  of  the 
United  States.  The  inference  ia,  that  if  the  good  faith  of  our  general 
Government  were  as  strongly  pledged  by  law  as  that  of  the  single  States 
referred  to,  or  as  that  of  first-class  railroad  companies,  then  its  bonds 
would  sell  at  as  high  figures.  But  the  objection,  though  seemingly  fatal, 
is  really  not  well  founded.  The  market  value  of  the  bonds  of  a  single 
State,  or  even  of  a  first-class  railroad  company,  is  not  subject  to  one 
tithe  the  influences  that  afect  the  bonds  of  the  general  Government* 
Domestic  disturbances  in  any  part  of  our  immense  territory,  political 
changes  of  many  kinds,  government  mismanagement  war,  or  threats  of 
var,  would  materially  affect  the  latter  without  necessarily  affecting  the 
former,  and  on  this  account  alone  might  make  the  former  investment 
more  desirable  and  more  sought  after.  Again,  the  affairs  of  a  small  State 
or  of  a  railroad  corporation  can  be  thoroughly  and  positively  known  to 
some  men  at  all  times,  while  the  bonds  issued  may  be,  indeed  are,  of 
euch  limited  amounts,  that  a  few  well-informed  individuals  ^n  buy  the 
whole,  and  can  afford  to  pay  a  high  price  for  them,  knowing  that  they 
will  be  the  first  to  learn  of  any  change,  and  that  they  may  be  able  to 
control  the  entire  market  in  the  value  of  their  investment.  It  is  for  these 
sod  other  similar  reasons,  not  firom  any  serious  fear  of  repudiation  that 
certain  other  securities  have  sold  better  than  United  States  bonds.  The 
maio  reason  why  the  latter  have  not  been  higher  is  that  there  were  and  still 
are,  many  investments  offered  that  pay  a  still  better  rate  of  interest  than 
they  do.  As  long  as  money  can  be  safely  and  promptly  employed  in  large 
amoants  at  eight  and  nine  per  cent  per  annum,  only  a  certain  portion  of 
thb  floating  capital  will  be  invested  in  bonds  at  seven  per  cent.  Unless, 
therefore,  money  should  become  permanently  easier  with  us,  and  through. 
a  decline  in  business  activity  or  from  some  other  cause,  a  great  falling  off 
result  in  the  general  income  from  capital  employed,  we  expect  to  see  a 
{!TowiQg  willingness  among  American  inrestors  to  part  with  their  bonds  and 
thus  meet  the  European  demand. 


THE  LEGAL  TENDEK  DECI8I0SS. 

The  recent  decisions  of  the  Supreme  Court,  relative  to  the  functions 
of  legal  tender  notes  in  certain  cases,  go  far  toward  settling  definitively 
the  scope  and  force  of  the  Legal  Tender  Act.  The  first  decision,  in  the 
esse  of  the  county  of  Lane  against  the  State  of  Oregon,  determines  that 


163  THE  IKQAL  TtKDKK  DECIEIOXB.  [ifoTti 

United  Stalw  Xotea  cim  be  tendered  in  payment  only  offuch  cblicalioi 
ta  come  tlriclly  within  the  legal  definilicn  of  ihe  lenn  "  debts,"  tlis  conslmi 
tion  being  batfld  upon  the  bare  letter  of  Ibe  law ;  and  a  lax,  or  impoci,  ii( 
coming  within  the  meaning  of  tlat  term,  the  Court  decided  thnt  it  coul 
not  enforce  Ibe  acceptance  of  legal  tenders  in  liquidation.  The  mulls  ( 
the  opinion  of  ihe  Court  in  ihia  ca«e  are  important.  It  placea  it  within  tb 
power  of  the  governments,  federal,  State  and  local,  to  enforce  the  co 
lection  of  tbeir  seTerat  imposts  in  golil  coin.  Practicallj'  Ibis  ii  not< 
anj  general  interest ;  for  Iheauthorilies  are  not  likely  to  incur  the  unpopi 
larity  that  would  arise  from  an  attempt  to  enforce  this  right,  and  It 
leas  so  as  the  laws  could  be  promptly  altered.  There  are  obligatioi 
which  do  not  come  within  the  definition  of  a  "debt;"  bnt  they  arei 
few  that  this  caae  has  little  hearing  beyoud  its  application  to  taxes  an 
the  disposition  it  shows  on  the  part  of  the  Court  to  interpret  tbs  » 
literally  and  strictly. 

The  more  important  decision,  however,  is  that  in  the  action  of  Bronsc 
n.  Rhodes,  which  has  been  made  public  this  weelt.  In  ibis  proceedio 
the  New  York  Court  determined  that  a  contract  payable  apecificallj  i 
gold  coin  could  be  liquidated  in  legal  tenders;  the  Supreme  Com 
however,  decides  that  such  a  contract  can  only  be  liquidxted  in  gol 
The  Chief  Justice  Inya  down  the  principle  that  every  obligxtion  must  1 
paid  according  to  its  terms  ;  that  the  Ihw  mnking  gold  and  ailver  a  leg 
tender  not  having  been  repealed,  there  are  virtually  two  legal  tender;,  oi 
coin  and  the  other  paper;  that,  if  a  contract  atipulates  for  the  paymei 
of  coin,  coin  must  be  tendered  in  payment ;  if  legal  tenders  are  apeuSe 
then  the  payment  may  be  made  in  such  ;  if  merely  doliara  are  specified,  wit 
ont  distinction  aa  to  coin  or  United  States  notes,  then  the  latter  may  be  le 
dered,  the  presumption  being  that  the  payee  gives  the  payor  the  option  > 
liquidating  in  the  less  valuable  currency.  This  decision  places  upon  aeon 
mon  ground  all  contracts  to  pay  money,  whether  made  before  the  paatai 
of  the  Legal  Tender  Act  or  after.  It  may  appear  to  conflict  with  the  Btri> 
letter  of  the  law,  which  makes  United  Slates  notes  a  tender  in  payment  i 
"  ALL  debts ;"  but  it  is  obviously  ba^ed  upon  a  broad  prinaple  of  justice ;  ii 
where  two  parties  i^ree  to  a  contract  payable  in  coin,  there  is  an  nnde 
atandingon  both  sides  that  coin  shall  be  paid,  and  were  the  law  to  sustain  t) 
payor  in  attempting  to  satisfy  the  debt  with  a  less  valuable  consideration, 
would  clearly  sustain  him  in  an  act  of  injustice  to  the  payee.  It  is  tt 
ignoring  of  ihia  principle  of  equity  which  constitutes  the  fatal  neaknc! 
of  Judge  Miller's  dissenting  opinion. 

This  decision  ia  not  only  consistent  with  the  broadest  and  atrickitequit 
but,  being  so,  it  naturally  conforms  to  the  convenience  and  interest  ol  tl 
eoramunity.    The  in  conveniences   arising  from  the  uncertainty  whethi 


\^^i\  THB   LIQAL  TSHDSB  DB0I8I0K8.  183 

coDtriicts  to  pay  gold  could  be  legally  enforced,  has  given  rise  to  a  pressare 
upon  Congress  for  the  enactment  of  a  law  legalizing  such  contracts,  ivith 
which  Congress  has  shown  a  disposition  to  acquiesce.  Had  it,  however, 
been  adopted,  the  question  as  to  its  conslitutionality  would  still  have 
remained  to  be  settled  by  the  Supreme  Court.  This  decision  relievetf 
Congress  from  the  necessity  of  taking  any  action  upon  the  questioui  and 
obvialeii  the  litigation  likely  to  follow  such  an  enactment. 

A  question  naturally  arises  as  to  the  lesults  which  are  likely  to  follow 
this  decision.  As  a  first  result,  we  suppose  it  legalizes  the  taking  of  cold 
interest.  But  it  must  have  very  important  bearings  commercially.  Some 
branches  of  trade  can  be  conducted  with  much  greater  convenience  upon 
a  gold  basis  than  in  a  fluctuating  currency.  This  applies  more  especially 
to  wholesale  transactions  in  imported  products  and  to  the  larger  dealings 
in  exportable  produce  at  the  Atlantic  p?rts.  So  great  has  been  the  incon« 
venience  of  conducting  these  transactions  in  currency  that  much  of  the 
business  has  always  been  done  in  gold,  on  simple  trust  in  the  honesty  of 
the  party  making  the  engagement.  In  the  cotton  trade  there  has  been  a 
growing  tendency  to  base  contracts  upon  gold  ;  and  the  larger  portion  of 
this  crop  being  sent  to  foreign  markets,  it  is  felt  both  North  and  South  thai 
there  would  be  an  obvious  convenience  in  that  form  of  contract.  Consld-- 
ering  how  wide  are  the  ramifications  of  the  cotton  interest  and  how 
sensitively  the  price  of  the  staple  sympathizes  with  the  fickle  fluctuations  in 
the  gold  premium,  it  is  not  surprising  that  there  should  be  a  strong 
desire  for  a  currency  which  would  obviate  such  frequent  charges  in  value. 
It  i9,  therefore,  but  natural  that  Northern  and  Southern  merchants  should 
desire  a  stable  currency  and  seek  to  be  rid  of  the  risks  arising  from  the  daily 
variations  in  gold.  In  this  view,  it  cannot  be  deemed  improbable  that  the 
leaders  of  opinion  in  the  cotton  trade  may  urge  a  more  general  adoplioo 
of  the  gold  basis.  There  is  perhaps  little  reason  for  expecting  that  such 
a  change  would  at  present  extend  largely  beyond  cotton.  The  purchases 
o"  the  South  at  the  North,  which  constitute  its  main  supply  of  merchandise 
would  be  made  in  currency ;  and  it  would  involve  an  inconvenience, 
witlioat  compensation^  to  convert  the  currency  values  into  gold  before 
retHiling  the  goods. 

These  appear. to  be  the  miun  changes  in  commercial  operations  likely  to 
result  early  from  this  decision.  There  is,  however,  a  very  wide  range  <^f 
other  transactions  in  which  coin  contracts  are  likely  to  be  adoptedL 
In  all  long  loans,  where  the  fluctuations  in  the  value  of  greenbacks  baa 
been  an  important  element  of  li^k  to  both  parties,  the  lender  at  least  i% 
likely  to  ask  the  security  which  the  law,  as  now  construed,  afibrds  him* 
Mortgages  would  lose  half  their  risks,  when  based  upon  gold.  State  and 
corporate  bonds  would  be  more  attractive  to  investors  and  especially  to 


64  coMHEKoiAt  coHDinoN  Of  TBI  oontTKT.  [Hora 

i:  reign  Ieiid«re,  were  they  made  pnjable  id  cchii.  Foreign  capiulni 
rould  be  more  apt  to  emploj  their  funds  here,  when  the  rates  of  inters 
tiled  bigli,  could  thej  be  employed  in  the  form  of  gold,  withont  the  riski  < 
onvtrting  them  iuto  currency  and  Again  r'convertingtbem  into  gold;  >n 
>ita  the  existing  telegraphic  fitcililies  for  communication  with  Enropea 
Qoney  markets,  tliia  must,  npjwar  to  be  a  change  of  no  small  moment  to  ll 
ronetarj  interests  of  the  country.  Thtse  are  the  principal  branches  i 
rhioh  gold  may  be  expected  to  supersede  currency,  uuder  the  now  cbang< 
ondition  of  affairs.  This,  however,  would  amount  to  a  very  imporlantful 
itilutton  of  greenbacks  by  coin  ;  and,  so  far,  would  facilitate  the  reauoiplii; 
if  specie  payment!,  wbeuever  it  might  be  deemed  practicable  to  ado; 
hat  policy.  One  very  important  objection  to  resumpUon  ariaea  from  tl 
ipprehensioni  of  loss  upon  the  payment  of  contracts  in  gold  which  we 
aade  on  a  currency  basis.  The  law  now  provides  a  remedy  agwnst  t.m 
oeses,  by  authorizing  contracts  in  the  medium  which  would  be  curre 
ipon  resumption.  Henceforth,  therefore,  ihe  question  of  resumption  isle 
ine  of  equity  in  contracts  than  of  financial  praotioability. 

In  the  light  of  this  decision,  there  can  be  apparently  little  doubt  as 
rhat  will  b«  the  determination  of  the  Court  upon  the  oonslitutionality 
he  Le^  Tender  Act.  If  the  court  had  regarded  the  act  as  uncons^tutiuni 
t  would  in  all  probability  have  rendered  a  decision  upon  the  case  und 
onsideration  involving  that  specifio  point ;  for  a  ded^ion  on  that  poii 
rould  have  determined  his  action  and  all  others;  instead  of  which,  ti 
ases  are  taken  up,  involving  points  which  are  only  necessary  to  be  decldi 
D  view  of  the  consideration  that  the  Legal  Tender  Act  is  oonstitotioni 
['be  mipposiUon  therefore  that  the  Coart  may  deliver  an  opinion  nullifyii 
be  Legal  Tender  Act  baa,  by  these  decisions,  been  placed  beyoud  tl 
ange  of  probability. 


TBE  GOHlERCUl  CONOITIDH  OP  THE  CODNTRT  iSD  BE8D1PTIH. 
Our  finance  doctors,  in  the  remedies  they  propose,  appear  to  pay  K 
lltle  heed  to  the  condition  of  their  patient.  Fiscal  and  Onancial  regul 
ions  are  so  closely  interwoven  with  the  trade  of  the  country,  that 
irescribe  wisely  for  the  former,  we  must  ascertain  precisely  the  state 
he  latter.  It  is  the  misfortune  of  the  present  laudable  efforts  to  reoov< 
he  spe(»e  basis  that  they  are  being  made  at  a  time  when  business  is 
n  unsound  and  unatural  condition,  rendering  all  interests  the  mo 
ensilive  to  the  temporary  derangements  which  must  attend  the  procM 
i»  a  people,  we  ere  not  prosperous,  nor  have  we  been  so,  properly  spea 
Dg,  for  the  last  seven  years.  During  the  war  our  ordinary  consumptto 
rith  the  waste  and  deitrnction  attending  military  operations,  were  muc 


1869J  OOKMSROtAL  OOITDITIOK   07  THE   OOUKTBT.  185 

ID  excess  of  our  reduced  production ;  and,  for  that  period  our  wealth  un- 
questionably diminiahed.  Since  the  war,  with  the  return  of  the  army 
to  indaatrial  pursuits,  and  the  suspension  of  military  oonsumptioD,  pre- 
duction  must,  of  course,  hare  kept  a  more  even  pace  with  our  consump- 
lioD ;  though  there  is  too  much  rtiason  to  fear  that  even  now  it  does  not 
qasl  it,  and  that  we  are  liviug,  to  a  certain  extent,  upon  past  accumula 
lions.  Habits  of  extravagance  are  usually  forsaken  only  under  corapu. 
sion;  and  it  is  therefore  not  surprising  that,  with  the  deceptions  ana 
false  appearances  attending  a  currency  inflation,  we  should  unwarrantably 
persist  in  a  hiirh  scale  of  public  and  private  expentdiures.  Social  evils 
correct  themselves  surely,  but  slowly.  The  large  profils  realized  in 
trading  during  the  process  o!  monetary  expansion,  naturally  drew  an 
undue  proportion  of  the  population  to  employments  connected  with 
commerce  and  speculation ;  and,  production  has  suffered  in  consequence ; 
we  therefore  find  a  large  addition  to  the  population  of  our  commercial 
ciiies,  an  increase  of  business  buildings,  and  all  the  external  appearances 
of  healthful  activity.  These  things,  however,  are  not  to  be  regarded  as 
the  legitimate  growth  of  a  really  sound  commerce:  but  as  the  lesults  of 
a  habit  or  process  inspired  by  the  intoxication  of  inflation. 

We  do  not  care  to  inquire  whether  the  fault  lies  in  our  producing  too 
little,  or  in  our  consuming  too  much.  Certain,  however,  it  is  that  our 
present  consumption  bears  no  healthy  ratio  to  our  production.  The 
oonr$e  of  our  foreign  trade  too  plainly  illustrates  this  fact.  For  the  last 
seven  years  our  importations  have  immensely  exceeded  our  exports.  Noi 
can  it  be  said  that  the  difference  has  been  set  off  by  the  profits  upon  our 
exportations,  or  the  losses  on  foreign  consignments  to  our  markets.  The 
fvn  has  been  demonstrated  in  our  columns  that  we  have  sent  to  Europe 
within  late  years  over  $750,000,000  of  securities ;  nor  has  this  process 
ceased ;  bat  this  year  we  have  shipped  probably  $35,000,000  of  railroad 
stocks  and  bonds  and  other  securities  to  England  and  the  Continent. 
These  remittances  of  securities  represent  the  difference  against  us  upon 
our  foreign  trade  account.  It  is  not  necessary  to  inquire  at  present 
whether  this  exchange  of  evidences  of  indebtedness  for  foreign  commodi- 
^es  is  advantageous  to  the  country  at  large ;  we  rather  wish  to  direct 
attention  to  the  fact  that,  before  the  war,  we  were  able  to  wholly  pay  for 
oor  imports  with  our  products ;  and  the  circumstance  that  we  are  not* 
d'jing  so  now,  proves  beyond  a  question  that  our  produciion  does  not 
hear  so  large  a  proportion  to  our  consumption  as  formerly.  It  ib  very 
clear  that,  under  such  a  course  of  affairs,  we  cannot  be  increasing  our 
actual  wealth  ;  for  a  yery  large  proportion  of  our  importations  consists  of 
commodities  which  perish  in  the  using,  and  are  but  little  promotive  of 
feproductioD.    Were  we  importing  leas  of  mere  articles  of  enjoyment  and 


188  OOMUBROIAl.  OONDITIOH   OF  IDB   OOUKTiir.  \  Man. 

Iniurjr  RnA  more  of  raw  materml^  uf  iieceuaiy  food,  of  llie  mitieciKls  i 
iDdusiry,  nnd  of  the  appliances  for  tmnsportalion,  then  ve  alionl'l  liai 
leu  occaKioii  for  regret  at  lrantf«rring  into  the  b mds  of  fDieigneri  sue 
an  immen*a  amount  of  obligations  at  a  lieavjr  depreuialion;  liul  we  Ijhi 
by  li'gislati  on  encouraged  tlieir  production  lieraundnr  d  i  sail  van  tAgen  whit 
invulve  a  siilistantiHl  naste  of  labor ;  aiid  this  consideration  ju^liSe^  ll 
d«duciioD  lliat  ffs  have  liaj  do  increaae  of  nealtli  proporuoneil  toll 
value  of  E^ciiritUa  sent  abroad.  This  niny  be  an  anweleome  c-onelii&iot 
but  we  do  not  see  how  it  is  lo  be  honestly  evaded  ;  and  is  no  |iarl 
wisdom  to  conceal  from  ounelves  tlie  plain  fauls  of  our  conditii>n. 

V,  instind  of  gaining  in  weallb,  we  are  rather  losing  ground,  then  U 
of  the  utmost  practical  importance  to  ascertain  who  are  the  losers.  Tlie 
is  somenhere  a  steadjloss  of  capilal  going  forward.  The  Iom  is  not 
be  locked  for  among  the  operative  and  employed  classes;  fur,  in  ll 
first  place,  they  have  little  to  losa,  and,  in  the  next,  the  returns  of  tl 
Bavingi  Banks  *  and  social  criteria  geoerHlly  fail  to  indicate  [o6S  on  llii 
part.  We  presume  it  will  not  be  supposed  that  the  agricnltural  tls 
(allthongh  they  have  not  increased  in  number  proportionately  to  the  i 
cresced  population)  hare  perceptibly  diminished  in  wealth  ootinteJ 
lands  and  bonds.  ManufacturiTs  also,  though  at  one  time  heavy  U>se 
thropgli  the  decline  in  prices,  have  for  the  kst  two  or  ttree  years  be 
more  piosperous.  It  is  mainly  among  the  distributors  of  cammojiti 
that  we  must  look  for  the  evidences  of  diminished  wealth;  and  rece 
failures  and  fuels  well  known  in  commercial  circles  leave  little  roii 
for  doubt  (liHt  as  a  class  this  interest  is  working  without  proBt,  We 
not  meoD  to  intimate  any  general  ineolvency  aroong  merchants;  b 
simply  that  in  a  Inrge  number  of  instances  their  private  and  business  t 
penses  exceed  their  profit.  This  ig  a  well  known  fact,  every  day  remark 
upon  by  merchants  themselves. 

The  great  evil  of  our  present  condition,  it  is  thus  seen,  lies  in  the  fi 
that  too  much  of  the  labor  and  capital  of  the  country  are  em]>loy 
ID  th<)  distributing  processes  and  too  little  in  production.  It  is  iiiipi 
uble  to  overestimate  the  importance  of  this  fact  in  all  its  bearing  up 
oor  efforts  to  regain  the  specie  basis.  It  is  out  of  the  question  to  ft 
pose  that  we  could  safely  resume  specie  payments  under  such  a  tx 
million  of  commercial  afiairs  as  now  exists  ;  and  much  less  that  we  cou 
do  so  without  business  interests  suffiring.  We  above  all  things  requli 
as  a  condition  precedent  to  resumption,  that  the  commercial  interest 
large  should  be  in  a  state  of  average  sonodneM ;  and  the  first  prepsn 


1869]  DKBT  AKD   nVlKCKB   OV  SOUTH   CAROLINA.  18? 

cry  inquiry  thoold  therefore  be  dii^cted  to  the  means  for  cheeking  the 
exUting  over  expenditure  of  all  dnf^Bes  of  the  community.  Can  l^gisla- 
lion  accomplish  anything  toward  cl^fcking  the  current  over  importation  t 
or  arresting  the  prevailing  extravagance;  or  diverting  labor  to  product* 
ire  persuits  I  Or  roust  affairs  be  left  to  find  a  sounder  basis  by  a  natural 
process  ? 
These  questions  must  be  reserved  for  future  consideration. 


mm0m0m0^0m0^^*0*m^^m0m^*0m0^0^0m0^^ 


DEBT  AND  FISiNGES  OF  SODTn  GiROlIIA. 

The  indebtedness  of  South  Carolina  on  the  31st  October,  1868,  accord- 
ing lo  the  Report  of  the  lion.  J.  L.  Neagle,  the  Comptroller-General  of 
the  State,  amounted  to  the  sum  of  t5,407,d06  27.  In  the  same  report 
the  Military  Defense  debt  is  stated  in  detail,  in  gross  amounting  to 
t2,24l,840,  and  with  interest  to  October  1,  186ft,  to  $2,700,142  28.  The 
Cunnitution  of  the  State,  however,  abrogates  this  debt,  and  tl.e  Comp- 
troller General  asks  permission  of  the  General  Assembly  to  sink  all 
accounts,  pro  or  con,  connected  with  that  unfortunate  event  in  our  national 
history.  The  State  debt  proper  may,  therefore,  be  considered  as  limited 
to  the  sum  of  $5,407,306  27,  and  is  made  of  the  following  bonds  and 
stocks: 

Date  of  Amount  ^— Interest 1 

i)eKHptloB  of  bonds                              Dat«of      Mata-  onretaud- Kate    Wh^n        V  he-o 

•Dd'tnrka.                                           Act.          rity.  ing        p.  c.   im  able,    pnyiblo 

Smertok P.eaanre.  $SS8  6  «•)  3  J.  A.  .&0.  Ureaa'y 

?f«Lo'ii JaiiV8<)       ....^'lO  81M58  89  6       "      *' 

^ew-sUteHooaevt'K "    %6    Jail/iT  «Mi,0«>0  00  tt  JaoAJoIy      '* 

*•        *•     *67       •*       *8S  800,000(10  B      ••        *"             »* 

*•             *•        »•     V^    Jn]yi,'t«  SO  .000  00  6      "       " 

**             "          •*     '6S      "        'M  '-00,0  < I  00  6      **        "             •• 

*•             *•         »•     'ft'J      "       '87  SO-iOOOfK)  B      *•        *•             ** 

*•             '•        "     *6!l      •*        '».)  aOO,()Oi»  0)  6      "        "            " 

**             "        "     Ml      "        'bJ  aO.OiO(K)  «      '*        " 

•*             »*        *     '111      »*        'm  !«0«MKiO '0  6      "        "             ** 

''            "        Feb  '68     ••       'to  9,00000  B     *•       "           " 

;iIiA0{*kr.fofi«ld*bt as5,7ad  ^8  6     "      "           " 

BftUicttiiot  yet  ftiDdiMl 897,217  fl I  0      »•       "            " 

J'elM  n(«.ert">?) Jn'C,V8       ...    '61  484,44161  ft  JAJAf».   Londnn 

BoetidgettR  boade...  "      'M    Jul)  1,'75  aO(».0<Ono  «  J  n  &  July  Treaa'y 

•*  "      *•         "       '7«  JkiHlOOOOO  6      * 

"         •*           " »•      "         »•       ';7  SOO.lKK)  00  »      "        "            " 

**         *•           "  "      »»         »»       »7«  SO'.OOOOi  6      *'        ••            ** 

^•*         "           ••     "      *•         •»       '79  »K)(iO.»00  6      **        "            *• 

^ewBt'teHonfebra. ••    '58       **       '71  JtOdOiOU  S  Jan* July    .... 

**      *•              •• "    '6\        "       '81  8  0,030(10  6      ** 

•*            •* Dec'Si   Jaiil,'85  ll,eOU  CO  6     »*       *•       Traaa'y 

The  contingent  liabilities  of  the  State  from  the  endorsement  of  railroad 
wnds  secured  by  first  mortgage  on  said  roads  are  as  follows  : 

^Qji  Carolina  BaHroad  bonds,  p  lyable  In  rOR $9  093  819  40 

Ui  He-tiiQ  and  savaonab  Railroad  bonds,  payable  1  n  Marcb,  1877 SdS.dOO  00 

Aorthe  ftfrn  R  ilroad  bond*  rayab'e  In  March,  1  69 9^0  >0  (n) 

Uirnt    ail'oad  »«nda.  p  Yiible  lo  18*9 75.0D0  CO 

hrtftaabarg ind  Union  R  Ilroad  bonds,  payable  In '7'3-' 79 av).i(0  00 

QrccnTUIeACol]imbUBBbo.di,payabrelu'81, '8t,*88&*86. 940,471  21 


168  DEBT  ARD  TUUKOU  O'  SOUTH   OAROLIMA,  [ifoft 

The  Suta'i  ioUrest  in  Uie  Sonth  Carolina  Railroad  i>  Bnbatsnllal,  >i 
It  is  also  probable  that  the  Northeattera  haa  tbe  ability  to  dbcbarge 
maturing  liabililiei.  Moat  of  ibe  otbar  coinpaniea  are  not  pajiag  inten 
upon  ibete  bonds  endorsed  by  tbe  State,  but  permitting  their  debt* 
Nccumulale  to  tbe  detriment  of  tbe  State's  credit.  Tbe  Comptrol 
sug^esia  the  adoption  of  audi  measarea  tt  may  be  deemed  expedient 
compel  ibe  payment  of  all  Intereet  past  due  upon  these  endonemei 
and  tbn  public  payment  of  the  same  in  future.  Tbe  assets  of  tbe  Su 
at  tlie  close  of  the  fiscal  year  1867-08  amounted  to  12,754,660,  and  I 
described  as  sljarcs  in  tbe  following  companies: 

Nonhei-ti-Tii  BR ...  $190,000  T  Chcuir  A  roulBeldi  RB Wt 

^nmitaiir.' «  Union  HR SIO.UOO    LaDrBm  HR ML 

rtnai  ton  HK *i,RO->lBoathCin>llnmBB -   - SI, 

3,aiiDTt  Ig  A  iJolambU  BR 431,M0  I  CturlSKUin  A  Mruinih  BR tlO, 

Itl11«  R  d^e  RR l.aiO.OUO  UoDlhwe'leni  RR.  B  K t 

3Jnmbli  AAngiulaBR. 41,100 1  Knowm  A  TDCkiaaegM  Tpk S, 

Most  of  these  are  utterly  worthless.      Tbe  South    Carolina   and  < 

Northeastern  sIocif,  in  nil  1144,000,  appear  to  be  of  no  value  whaler* 

and  even  if  tbe  Blue  Ridge  Railroad  should  be  carried  through  (wbi 

however  is  almost   a  certainty,)  it   will    take  many  years  to  bring 

stock  to  the  dividend  paying  point     Tbe   State,   therefore,  oantiot  be 

for  any  direct  relief  from  its  burdena  from  these  records  of  ila  gener 

ity,  but  must  be  sHlisfied  with  the  works  that  have  been    fostered  ii 

life  by  its  aid  and  whiuh  have  contributed  so  much  to  the  development 

the  country,  and  the  appreciation  of  taxable  property.  South  Carolii 

though  temporarily  under  a  cloud,  is  a  rich  State,  and  can  affiird  to  1( 

such  an  amount    as    these  dead  securities  involve.     lU  resource  to  mi 

ils  financial    necessities  mubt  be  taxntion.      In  what  raanuer  and  to  wli 

extent  taKHtion  is  borne  by  tbe  700,000  people  in    tbe  State,  let  tbe  i 

lowing  table  (made  up  from  a  vast  labryntb  of  figures)  tell : 

TAXABI.BS  IRD  TtXATtOK,   I8'8. 

OhJecU  of  laxBtlas. 

[ADd.  1t*ns.(Hai<eni 

Rnleauia  In  cl'lo.  town* Md rriigst 

Bngils!.  cirritgn',  |[Dld  iDd  iilvet  piste,  wstcti 


oall  pTOpMlf M.0U.<n4 


nlllBi  md  prarsHlODi.,... 
irineand  o  derwritlng... 


10  from  ululat,  noli,  dlTidindi 


linf-Uji  I  coinpupilei 

t'Tprr  Btahi*  k  enen 

Binctaortsnd  tncii.ter*  

BLI.u'd  t  iblH  .nd  b.wllng  tUeyt. . 

racrlai,  brldg**  sad  kdi-salM 


V»Jn'»  snd 

£5: 

■T««f.- 

•5SS 

•m1 

,      I.M»,S« 

i.» 

114 

M.o«.(n* 
i,*M.sni 

.M 

Mi.n 

«(«,S1T 

30H,1Hi 
81,' <T 

U.6S8 

s'oa 

■  s 

J«,S 

;     gSS 

1 

t! 

1869]  PHILADKLPHIA  AND   READIKO  RAILROAD.  189 


Spedfle 

lazoBtakiogo  t  achirtnr ....  $90  00  30  00 

Tax  on  etch  renewil  of  a  cbar  er 

Tax  on  cable  taacks,  stage  coacliei.  baggage  i»agon8  and 

oranibieea  dimwii  by  two  or  more  hon>»e,  4)i^ «...  $10  00  425  (K) 

Tax  im  dntja,  car  8  or  baggau:e  and  express  wat^ons,  8GB. . .  ....  5  1,625  00 

Capitsdun  tax  on  males  between  21  and  60 ....  1  5?),  121  50 

Taxondogt ....  1  2C,(>S8  60 

Total  amount  of  taxes $469,27180 

The  police  or  local  taxes  are  comparatively  light  or  are  no  fully  returned 
The  rate  varies  largely  in  the  several  parishes.  The  Free  School  tax  is 
collected  only  in  the  parishes  of  St.  Phillip  and  St.  Michael  in  which 
Charleston  is  located,  and  araounted  in  1868  to  ^18,813  81.  The 
•poor  tax  for  the  whole  Stote  was  $54,328  68,  the  tax  for  public  build- 
ings $30,875  41,  and  the  bridge  and  road  tax  $60,737  43.  These  in  gross 
arooQDted  to  the  sioail  sum  of  $164,755  33. 

The  estimates  for  the  support  of  the  State  government  and  the  public 
eredit  for  the  fiscal  year  commencing  November  1,  1868,  are  stated  as  fol- 
lows: 

Sslaries  of  state  offlnersjndges,  Ac $86,200  00 

iegia  at  Te  Department 140,0(H)  00 

Ki^' QtiyeDepirtme't 1S,500  CO 

Jadidaiy  Department 4{i  100  CO 

Ordinsr*  ciTli  expenses. ■ 191,198  13 

SUtep.»Wcc 12,000  (0 

Inierest  lkl.ing  dne  In  year 829,492  88 

Totsl  estimated  expenditures 1820,400  61 

The  bond  interest  which  became  due  in  1868  was  mainly  paid  in  new 
bonds,  and  it  is  not  improbable  that  the  maturing  interest  for  1868-69  will 
have  to  be  met  in  the  same  way.  There  is  also  a  considerable  amount 
of  the  debt  due  and  near  maturity  which  will  have  to  be  rearranged* 
Bejood  these  drawbacks,  which  are  only  of  a  temporary  nature,  the  finan- 
cial status  of  the  commonwealth  appears  to  be  healthy.  Taxes  are 
collected  and  are  not  burdensome,  imounting  to  less  than  70  cents  per 
capita,  and  they  appear  to  be  laid  in  such  a  way  as  to  forget  the  industrious 
poor.  The  only  tax  that  touches  all  is  the  capitation  tax  of  one  dollar  on 
all  males  between  21  and  60  years  of  age. 


»«««i.i.i.i        ...  ■,M-,|-,ni-ii-,j^ 


FHILASELPHli  AND  KEADINB  RAILROAD. 

The  Philadelphia  and  Reading  Railroad,  which  at  the  close  of  1867 
had  a  working  length  of  770.60  miles,  at  the  close  of  1868  was  running 
no  less  than  806.69  miles,  an  increase  during  the  year  of  36.09  miles. 
This  increase  is  the  result  of  the  completion  of  the  Zerbe  Valley  Railroad 
15.32  miles  and  the  Perkiomen  Railroad  10.20  miles,  and  the  constant 
exUosioa  of  side  and  other  tracks  necessary  for  its  business  purposes. 


90  PHILADELPHIA  ABD  BKADIKO   KAILKOAS.  [ifoj 

'he  details  of  tbe  roads  now  onned  or  leued  by  the  comptoj  kre  u 


To'illcDRlh  o'-o<doiraei1  b}  cnmpaDT. tlTn 

or,  iDclDdlug  •econd  inck,  bnoctiei,  ndlngt,  Ac..lhe«)alralantilacla  inck 

The  raitro»(ls  namod  betow  are  leased  and  operated  in  connectioa  ' 
le  above  lines  : 

Hiln  *  fti'a  EqnlT.  I  If a'u  A  SldV  E 

brancnOD  ibe  ■inc  a  I  braticn  on  tSe  i 

Rallroidi.  Unas.  miiii>.  tnu:*.   i        Billrctd*.  Hn»    Hx.  I 

lneH.>!-onlH m.S3    BiM  ItB.liS    Good  H|irtii' 14.88      1.60 

III  Is  !:chD)1)Llll Si  81    18  St    51  45    CDGaUr  Vi.Hi't tl  HI     *M 

gglH  h»iii>y 11  1*      S.«8    14  10    P  ri  K^nnnd) 0.',8 

111  Cceek H.te     8.11    ».KI  i  Wvrl  Rcldlng 1.14      1.00 

hnil  III  VaIIrt au.HR     H.K4    SJ  :t '  I  ZeriK- Vl  I' ]• K  fV     4.n 

.    14  Gl  I  i-rcklomtn 10, W     l.tO 

Bd  uul  opcntsd SCO. (0  949.89  t 

Tbe  aggregate  lenglb  of  rail  road  (equivalent  single  track)  operatec 
le  com|>an;  in  each  of  tbe  last  seven  years  vai  aa  exbibited  in  tiie 
iwiug  ftateroent  : 


vt  im*d>. 
iphiB »  d  r  -  ■ 

a  Valley.. 


13  Sfl  iSA.i 


onntUmrb  n&  Port  C^tbon. . . 

'i),ei'y'Cnei'.'.'.'.'." '.'.".'  .'.'.'. 
>od'-piloi(»w«.w«) 

'"ulauaaj.  ■■■'.■.'.'.■.■■.'.■.:"■" 

«itK»dl  K 


«.» 

W.HI 

..  n.it  iv-n  no  4a  s  0  48  8*0.81  su.u)  9 

_  «T.41  (14.  IS  B38.10  111.60  «8.«  TI0.80  8 


The  rolling  stock  on  the  main  road,  laterals  and  branches  at  tbe  c 
tbe   fiscal    year   Noveniber   30,   1868,    was  as  follows:  Locoidc 
igines  (Isl  class  206,  2d  cUsa  22,  Sd    olass  5  and  4tb  cla^a  4,)  i 
Iso,  on  Mine  Hill  Railroad  (1st  clais  23,  2d  class  9  and  4tb  class  1,) 
)tal  engines,  26B.    Passenger  train  cars  (S-wheel) — passenger  81,  t 
kge   23   and    mail   and  express  11^.    Total   110    (—   4-wheel  21 
reiglit  train  cars  (8-«heeI) — house  704,  cattle  76,  platform  1,3SS 
neeO;  and  (4 •wheel)— bouse  68,  cattle  2,  platform 
)  and  lime  130.    Also,  one  16-wheel  platform  gun-c 
-   4<vheel    2,612).     Coal    train  cars  (8-wheel) — iron 
486;  and  (4-wbeel)— iron  2,713  and  wooden  3,101. 
wheel   13,306),      Transportation  department  can  (i 


1869]  PHILADSLFHIA   AlTD  BBADINO  RAILROAD,  101 

wreck  trains  10 ;  platform  ^ith  cranes,  18,  and  crate  for  sawed  wood ; 
Mil  (4  wheel) — house  wreck  trains  5,  open  for  cord  wood  o8«  and  for 
depot  fuel,  <&c^  3.  Total  82  (»  4  wheel  98.)  In  use  on  Mine  Hill 
Railroad  (9  wheel)  26  and  (4-wheel)  72  freight  and  wrecking  and  5  pas- 
senger. Total  103,  (bi  4-whee]  116).  This  department  hasalso  39 
steam  engines  for  shops,  pumping  and  sawing;  8  snow  plows ;  'JO  carts, 
wagons  and  drays;  174  horses  and  mules,  and  23  extra  tenders  for 
locoinotives.  Roadway  department  cars  (S-wheel)  62  and  (4-wheei)  271. 
ToUl  333  (»•  4-wheel  395.) 

The  number  of  locomotives  and  cars  («»  4-whce])  in  use  at  the  close 
of  each  of  the  past  seven  years  was  as  follows : 

18«1.        38«t.        1F65.        ISfiS.        1867.      186S. 

LocomotiTes IM  1S3  221  S34  2:»  226 

do        (X.  H.B.  B.) 83  33  as  c8  88 

TotJl 166     S16    264    2CT    268    289 

Cars  (equivalent  4-wheel)  : 

Paffeogrr,  Ac 184  161  174  210  220  287 

Freight 1,5^86  2,086  2,140  2,Ji43  2.4«i8  9  Mi 

Coal 10,183  11.425  11,499  13,1  »8  13,116  13,?06 

Mine  Hill  Bli      80  80  7^1  72  il8 

Tran^poraiiOQ  department. 161  184  100  111  I'tU  »8 

Boadw^jdepartmeat. 841  44i  878  40a  870  896 

TotaU=4-whee]) lS,3cO      14,836      11,391      16,811      16,855      16,664 

In  the  following  statements  the  business  of  the  road  and  the  rei^ults  of 
operations  for  the  year  1867-68,  and  the  five  previous  years  are  summed  up  : 

1867-68.  1863-64.  1861-65.  1865-68.  186^67.  1867-68. 

Pau*iips,  numTMr 57t>,8«l  1,043  «K)  1,481,632  1.444,257  1,273.644  1,194, «)75 

lt«rrebandhe,  tons  0^2,000  lbs....    652,2»i8  607,106  846,105  1,017,121  l^ia'S.i^  1,220,696 

Coil.  lunB  of  2,940  IbB 8,068,261  8,065,577  8,090,814  3.714,684  8,446,826  8,674.674 

The  earnings  from  the  above  business  were  as  follows : 

$  $  $  t  f  $ 

PttViij^  ^rainffS. 666,520  909,883  1,065,847  1,026,217  1,005.647  987.ft06 

XerchAudise    *^     678,148  9s«,716  1,1H6,377  1,421,659  1,5.6,'61  1,415,728 

CmX                   •*       4,897,200  7,aa3,';75  8,6*7,294  8,846,696  tt,40i.N19  6,252  224 

V.S.XaU 91,309  28,496  28,871  97,719  83,085  29,150 

MteeeU4beoas 94,780  178,411  S56.282  181,647  187,384  107,284 

't^,gr09B 6,259,9)2    9,269  840  11,149,519  10,902,818    9^106,496    8,791,987 

Ex,.ea^  rents,  Ac  9,646,002    4,684.848    5,906,864    6,231,600   6,767,858    6.641,100 

Ifettprofits 8,706,900    4^681,4^    6,286i665    4,681,318    sisssiess   8,153,887 

From  these  amounts  must  be  deducted  the  following,  viz : 

BenewAlfa^d 870,158      876,841      424,334      617,247      498,576      62M11 

lAterMt  on  bonds 653  464       4'f7,594       878.269       869,709       856,844       875,156 

**      on  bond!  A  mortgages..     a%972        84.620        80,947        86,941        88  337        87,851 

Mskinfi  fands 210,830      892,021       431,280        68,600        6^6  0        f.8,600 

^ewworks,Ac 1,066,775    2,032,669    1.889,264    1,169,234      886,520      409,837 

SUtetai  on  capital 43,137 

Totalpayment? 2,878,886    8,298,119    9,014,089    9,161,781    1^.877    1,412,855 

Bal.  of  earnings 1,858,564    1,891,813   9,632,566    9,529,537    9,039,161    1,737,989 

The  ^Reserved  Fund,"  made  up  from  net  earnings  and  other  revenues, 
snd  liable  for  dividends,  drawbacks,  &o.,  is  epitomized  in  the  following 
statement : 

„  ^       ^         ,                                    1868.         1864.  1865         1866.          1887.           18^8. 

B^^toeredlt $990,996 $9,171,259  $372,060 $3,80^789  $9,999,1' 8  $9,769,266 

£?*«r^£^'«";-iV.V ''''h95a,6M    1.891,813  9,689,666  9,599,687    2,039,761    1,787,989 

SS^tlf^J^^^^^^^'^^^^^^^^^'^d    104,000     370,000      820,000     

Schvylkn  Naf .Oo.baL  ol  aeconnts, 

fwg,*c...... 984,067      986,807       116,199       110.948 

•3J"i<«boats,Ac 68,677      113,885     

UM  oebts  paid.. .••••• 96,606     

Totilnaooices tim630$8i66(i.ro$8^  i^ 


kinda  AmaTtg'a—>    .  

Irklugfand  tt'k  *Dd  bondi. 


B2  FHILADBLPHU  AKD  KKtDniO  BAILROAD.  [JToJ 

From  nhicb  were  disbnned  the  folIowiDg  scoounta,  riz. : 
"VPJJJ;"';!^ ;>'*'"^}-i,»«M«    «a8,iHst.ii».ns«a.ng.Me|i.tt 

[.S-AeuieUmandiTideadiV.''  '....'.V.       S0e.KO     tK,lS»      3Ba,SlT      » 

>nwb  1 OD  tnfflc tSKB        40,397     Ba.BH     

'otildltbiirnn'L |14B,)«1  tS,*M.B*l      tlS,aM  tA.BeG.!«0tl.a>.n5 11.70 

laliDlxNov.SD S.ni.UD       Sn,DU    t,aoa,78a    >,M0,11S    (.TCBJM   1,91 

Tije  rate  orihe  divideodi  pnid  in   tiie  Eeveral  yenrs  was  aa  follows'. 

-rctmdBtock T  IS  ID  10  10 

lommoDitiKk T  IB  10  10  l* 

— ibe  payiuent  oftbe  January  (1B69)  divideod  and  tax  redaced  tbe  ball 
,r  Nov.  30,  186e,by  11,418,685,  OTtotS05,S&l. 

The  financial  condition  of  the  company,  as  ehown  on  tbe  general  ball 
heeta  of  J^ov.  &0,  yearly,  lor  the  tix  years  1868-8  was  as  follows  : 
iBss.       isu.       iswl       !£«>.       lan.       m 

*  *  *  *  _      >  * 

lock-common ii.Mi.4ia  I8.BX).S94  ia.eta,S7a  ti,iei.n6T  n.>M,an  Ht4 

prcf  ired i,iLM,EOn  i.Mi.BOO  i.ui.DCo  !.eAi,8na  i.Ki.em  i.se 

'—->-  io.oi7.8on  s,eT&a>a  t,s6s.sao  6.r«<.:i«  s.Ki,taa  t,s. 

F9D.a>6       tOe.GTV       tm,ab»      t''&,36))       SG8,6K      u 

.,, 'teV.ois   'iriroM  j,8b,'7m  «,»M,"n8  i^isIsM  i.M 

ilvldNMl  (Una. >,:ll,«6U    

rrotliL M,S]S^a  17,118,183  80,608,On  ai,Kt,S4B  SS,1B6,18S  B,» 

Per  contra : 

lallrMid.Ac IMW.SWI  14,«4I>.3W  I4,1WlJ>ia  U,«8,En  lS,Gn.481 14 

iFpot' 4:T,itM     4T7.eM     tn.en     tsijyK  i.oi,>M  I 

InalneB  4  l»r> 8,7M,rr4    B,r8S.TT4    >,7W,774    M8S.7T4    M8S.rM   I 

[B.1  »t  ts. l,4B3,0O6    1.49S,D06    1,T»,007    1.086,1U    1,4IB.>18   ■ 

£b»naiiV>l.Rit 4,H.S,87K    4,US,n8    4.M£,8^I1    4.884,481    VSI.4S1    4 

niiooit.  RK lou.um     KO.noo     iiaoou     100.000     :ao,(oo 

.Dllllorrwork'..... 1184.183      t^.tSS    S.4a7,4iS    8,419.438    8.TW5M   E 

.tWtioverlUb's I,144,«S4    3,148,709    1,788,714    l,e4~,1«    1,irn,7sa   I 

ToUl 18,318,821  XT,Tie,U3  80.806,071  Ba,87^M8  3S,:60,1E1  lUt 

The  funded  debt  at  the  close  of  the  years  as  above,  stood  thas: 

1801.       18S4.       inaB        Ifif.a.        IGST.       1 

D.  e.  £bandB,  1836-67  ....  ' t4IM  000  |40j.01)0  t^oe.UOO  |4i«.U)0  t |. 

u   c.fboDdf,  1838  80 18i.4UD    If^xO    lei.400    IBt.lDO    1Sl,tro   V 

D   c   ib»>.d(.  1881-11 110,000    lOn.iHO    100.000    108.000    IOh.OOu   :(i 

S.  c.  £  bondf,  lWS-80.  07n,E00    1176,800    B  6,'00    078.800    OTBtOO   K 

D  ctbond*.  leiK-eo eivi-oo  ms.oco  uo.ooo  Mti.000  mb,oo  m 

u   c  ihOfdi,  1844-80 8  11,000  Bi>4,0i0  804.000  804.100  SOI.UM  H 

DC.  iboDde,  l>i<S-eO lOI.UiO  I01.UO0  I0i,OO»  101,000  lOl.dO  n 

D   c  ibande,  18tii->'0 bl.i'O  07,  00  07.000  87.000  k:  nnii  f, 

n'c.tboiid*.  )l»7-3e t,4»0,toa  864.800  41^8UI  1:8,600  I 

S  c  I  (LV)  bdil8se-t6  .....  -  "■■ —    

D  r.  £l>aiidI,18S<5-7M-T.... 

S    e.  |bODd«,    180B-M 1. 

f.c.tbond*,  1888-83 l,tt 

ToUINdt.  80 10,U7T,300>,tt'Ri.lOO  0,868,800  ^064,800  3,Ha,80a  6,37 

Prices  of  Slock — The  stocks  of  the  company  have  fluctuated  inonlbl; 
he  New  York  inarket  as  sboweil  in  the  following  statement : 

1S6S.  1S84.  Ifti. 

.dtu't. T7X-S6      111    -118!f  101)4-118       9  !}i    I 

rb    ., 8»X-M     llfl«  tB8«  loa    -117       fi  IJf  1< 

lirch f6«-oi    '"ox-iji    f    -ix  ;       !   K 

ortl f«    -  Wl      US    -16%       «  IS  it 

£« B4    -SO      HIS    -147       «  I«10  l«  IC 

BUa P9   -UAiC  llCJi-l'tt       e  *M  IV  S  " 

pi/-.... OS  -maiaji-mH  »  XK         ij*  » 

.ninM. 11SK-Ir4      I3*ii-ia7«    1-  IK  il  IX  It 

,pt        11*    -'M      li7Ji-134      10  1^  11  [«  W 

i^uber. 119    -;M      110    -W4      II  mil  Wl 

o, 119    -1117«  li«J(-140     11  IK    1  rji    I 

•CO  IIIX-IM      mjf^jtflO IJ(HJ  Ii8    I     .        ..  

T<U TIJ4-U3     111    -165       SON-IISM    MU-118K    BlU-ie>X  Hj(-1 


,V)  bdil8S6-t6 1,441,000     80,000     «0,L00 


2809]  BANSRTnTOT   AKD   I2Y80LVKKOT.  19S 

BARIRUPTCT  AND  INSOLTBNCT. 

BY  O.  H.  O, 

The  followiog  hypothetical  ease  presents  an  interesting  problem  in 
bookkeeping,  and  a  very  instructive^xample  in  political  economy.  I  find 
it  in  Gimge*$  Joumaliff  Banking ^Miahed  in  PhilRdetphia,  July  21,  1841. 

^It  is  one  of  the  peculiarities  of  a  paper  money  system,  that,  under  it,  a 
ooantry  may  abound  in  wealth,  may  owe  nothing  to  foreigners,  and  yet 
every  man  in  it  may  be  bankrupt. 

'^Thia  may  sound  strange  to  many  readers,  yet  it  will  be  easy  to 
demonstrate  it. 

** Suppose  a  State  to  have  within  its  limits  one  hundred  thousand  fami- 
lies, and  each  family  to  be  worth  ten  thousand  dollars.  Here  will  be  an 
aggregate  of  property  of  the  values  of  one  thousand  million  of  dollars. 

**Neit,  suppose  each  head  of  a  family  to  dispose  of  his  own  property  on 
credit,  and  purchase  an  equal  amount  of  some  one  else  on  credit.  Here 
is  as  aggregate  of  debts  and  credits  of  two  thousand  million  dollars. 

^Tben  suppose  the  circulating  medium  of  such  a  community  to  be  sud« 
denly  reduced  in  amount  one  half.  Through  the  shock  that  would  be 
giren  to  confidence,  prices  would  fall  more  than  one-half;  but  suppose 
ibem  to  fall  only  one-half.  Here  then  will  be  but  ^ve  hundred  million 
dolisrs  worth  of  property,  with  which  to  liquidate  two  thousand  millions 
of  debts  and  credits.  Each  man  will  receive  five  thousand  dollars  from 
his  debtor,  and  pay  five  thousand  dollars  to  his  creditor.  Yet  when  all 
iliis  is  gone  through  with,  each  man  will  owe  five  thousand  dollars,  and 
have  five  thousand  dollars  owing  to  him.  Every  one  would  then  be 
bankrupt,  althougb  the  land,  the  houses,  and  all  the  other  wealth  of  the 
State  would  be  just  what  they  were  before  " '  the  contraction'  began. " 

The  word  bankrupt  is  here  employed  in  its  restricted  but  true  signifi- 
cance of  inability  to  pay  in  money  according  to  contract,  and  not  in  the 
more  general  sense  of  insolvent^  which  means  unable  to  pay  in  anything. 

Every  one  who  attempts  the  study  of  political  economy  meets  with  ob- 
ecurity  at  the  threshold  from  the  corruption  of  its  nomenclature  in,  as  well 
u  OQt  of  the  dictionary:  this  is  a  case  in  point  No  great  scholarship  is 
necessary  to  know  that  bankrupt  is  derived  from  the  Latin  ^aiicf/«,  a  beneh, 
Mid  rupius^  broken,  and  that  the  term  came  into  use  among  the  Jews  in 
Italy  who  were  the  money  dealers  of  the  middle  ages.  They  displayed 
ti.«r  money  upon  benches,  and  the  custom  prevailed  of  breaking  the 
beach  of  every  one  that  failed.  Hence  it  is  to  money  dealing  that  the 
term  bankrupt  strictly  applies;  and  as  every  one  is  a  money  dealer,  ^  o  far 
as  he  contracts  to  pay  money,  he  is  bankrupt  when  he  is  unalle  to  pay 
money  according  to  contract,  althougb  he  may  be  solvent  as  to  ability  to 
pay  in  goods  or  something  else. 

3 


I  BAWXRUPTCT  ^HI>  ITSOLTSVCT.  [ifai 

Kad  this  is  the  coodi^oD  ofeich  bead  of  a  family  in  the  ease  preMot 
Mr.  Gouge,    Em-h  one  owes  ten  thousand  dolian  of  money;  be  m 

to  bis  creditor, "  I  cannot  pay  ten  thonsand  doIUra,  but  I  am  prepM 
componad  the  debt.  I  can  pay  five  thuosaad  dollars,  and  delifec 
1  tbe  value  of  five  iboasand  dollars  in  otber  property  besides  l«  c 
irge  tonr  claim."  But  as  each  one  baa  tbe  same  ralua  of  proprtj 
eive  as  to  delirer,  ihe  delivery  of  the  properly  amonuts  to  noUii 
1  tbe  short  way  to  the  sdjustmeet  is  to  dojlare  a  general  baukrup 
Sve  thousand  dollara  efich,  «bich  caLaot  be  had,  or  fire  hundred  n 
IS  in  all,  according  to  Ur.  Gouge's  eiainple.  And  this  is  preci«el;  I 
te  of  tbeir  Hffiirs;  they  do  not  meet  Iheir  contraols  aooording  loi 
d«  by  five  hundred  millionsof  dollars,  bevsuseooe  bilf  of  the  promi: 
lars  are  annihilated. 

'he  following  entries  may  elucidate  tbe  case  as  a  problem  in  bw 
j>ing.    Each  man  willintoribe  on  his  books: 
lerchandise  Dr.  To  Stock 

capital  in  goods,  A;o tlO,Q 

tills  receivable  Dr.  To  Meichaodi'^ 

'  goodi  or  property  sold tlO.Q 

lercbaadise  Dr.  To  Bills  Payable. 

goods  purchased $10,0 

[ere  tbe  contraction  of  the  currency  reduces  prices  one  lialf,  and  tb 

>w: 

'rofit  and  Loes  Dr.  To  Merchandise. 

\  by  depreciation t3,0 

lash  Dr.  To  Bills  Receivable. 

eived  one  half  in  money t5,0 

'rofit  and  Loss  Dr.  To  Bilk  Receivable. 

nbarged  one  liaif  in  bankruptcy f5,U 

;ills  Payable  i)r.  To  C.sh. 

I  one  half  in  money 95,0 

ills  Payable  Dr.  To  Profit  and  L>fls. 

tined  release  in  bankruptcy 96,0' 

loik  Dr.  To  Prodt  and  Loss. 

balance  of  profit  and  loss  account t^.Oi 

y  casting  his  eye  over  these  entries,  without  taking  the  trouble  to  wti 
tbe  posting,  any  good  accouutant  will  see  that  the  buainess  is  re<luo 
le  simple  condition  of 
^hRDdise  Dr To  Stock.  «5,0l 

each  head  of  a  family  in  this  bankrupt  community  stands,  aa  lo  cs 
wealth,  and  means  of  doing  bosioess,  precisely  as  be  did  before  il 
Taction,  1.  e^  in  possession  of  the  same  quantity  and  value  of  proper 
at  one  half  tbe  pnce;  with  this  iiuporiaut  advantage,  that  he  cs 


1869]  BABTKBUFTCT  AND   IK80LTBNCT.  105 

export  mdrcfaandise  profitably,  to  the  encouragemeDt  of  a^criculture  and 
maoufaclaresy  which  he  could  not  have  exporte<l  bafore;  he  and  his  com- 
mooitj  having  now  the  world  for  a  market  for  goods,  instead  of  the 
money  which  they  would  otherwise  be  forced  to  ship,  and  which  before 
they  did  ship,  at  its  degraded  value,  that  is  to  pay,  in  paying  the  high 
price  for  imports  resulting  from  their  cheapened  inon<>y.  Nothing 
responds  to  a  depreciation  of  money  by  rising  in  price,  sooner  than 
imported  commodities. 

Now  suppose  contraction  could  fall  upon  all  alike  in  the  comfortable 
vaj  above  described,  what  possible  advantage  is  there  in  the  expansion 
wbieb  compels  the  contraction  and  adds  nothing  to  capital  or  the  means 
of  doing  business  f  Each  of  these  men  may  look  the  other  in  the  face 
aod  say,  in  the  words  of  the  old  song:  *' We're  ail  good  fellows 
together;"  but  what  do  they  gain  by  the  ^*  paper  money"  system,  which 
iArnei  the  price  of  property  to  one  thousand  million  dollars,  the  value  of 
which  is  five  hundred  million  dollars,  since  the  value  of  the  property  is 
the  limit  of  its  purchasing  and  paying  power. 

Mr.  Gouge,  in  this  instance,  neglects  to  mark  the  distinction  between 
value  and  price.  The  value  of  the  property  nev^^r  exceeded  five  hundred 
iLillion  dollars,  because  values  are  isodynamic  equivalents  in  cost  of  pro. 
d'JctiuD,  or  in  material  utility  appropriated,  like  land,  compounded  of 
>Qpply  and  demand.  A  thing  destitute  of  inherent  utility  which  costs 
iK)thiDg,  like  a  paper  note,  cannot  possess  valu>>,  and  of  course  cannot  be 
the  equivalent  of  anything  that  does  possess  value.  If  it  could,  wealth 
would  be  easily  produced  by  simply  writing  notes. 

Mr.  Gouge  continues:  *'  Now  such  a  case  as  is  here  supposed  cannot 
occur  in  practice.  A  trading  nation  will  owe  more  or  less  to  foreigners  ; 
^nd,  much  as  we  are  in  love  with  the  '^credit  system,"  every  roan  will  not 
.i^po&eof  all  his  property  on  credit,  and  purchase  an  equal  amount  of 
others  on  credit.  The  case  will,  however,  serve  to  illustrate  the  efiects  of 
"'  a  flexible  standard  of  value.'' 

Undoubtedly,  as  far  as  it  goes,  it  does  so  very  clearly.  There  is  nothin*;, 
I  ihiok,  in  political  economy  more  preposterous  than  the  notion  that  we 
Deed  any  other,  or  any  more  flexibility  in  the  circulating  medium  than  is 
to  be  always  found  in  money,!,  e.,  gold  and  silver.  When  we  think  we 
need  more  currency,  what  we  really  need,  and  what  the  best  interests 
<'f  the  country  demand,  is  a  lower  price  for  things,  so  that  wa  may  pro- 
duce cheap,  sell  at  a  profit,  and  import  to  advantage  :  unless  more  cui- 
rencj  means  more  capital,  which  is  always  desirable,  and,  in  the  precious 
meuds,  is  more  desirable,  because  in  more  universal  demand,  both  for 
borne  use  and  export^  than  any  other,  inasmuch  as  everything  else  makes 
a  Qsmand  for  money* 


5  BAKIRDFTCT  An  ISIOLTIKOr.  [Mm 

Wbat  is  the  perreclion  of  a  cominodit;  f  Certaioly  unWerBal  detiral 
S8.  So  tbat  th«  commodity  potaosacB  this — so  that  everybody  wanti 
d  is  vrtlling  to  pay  for  ita  iotriDsio  valai^,  no  trader  concerns  him 
out  its  use  Bt  an  iDstrament,  or  abont  the  ultimate  otility  to  wbicl 
lue  is  due. 

A  dollar  is  a  tnatketabie  commodity  cootiiimng  a  qnanlity  of  gold.: 
labHrfor  sole  is  a  mnrketable  commodity  coolaining  a  qnaality  ofi 
lO  former  being  ia  iiDi?ersal  demand,  will  employ  labor  more  resi 
d  itimnlsle  industry  and  the  production  of  capital  (o  obtMnilii 
in  any  other  commodity  whalsTer,  The  latter,  however  ufeful,  i: 
ry  limited  demand,  and  htu  but  limited  power  to  encourage  iodi 
d  the  produf^lioD  of  cspital.  The  trader's  interest  ia  in  the  coronm 
t  in  the  instrument.  Its  value  in  eiufaan^  is  what  concerns  him 
liter  what  CRprioe  may  detenuioe  its  value  in  use  ;  and  it  happens  : 
>ney  has  no  other  value  than  value  in  exchange, .» nee  it  is  an  affai 
ide  exclnsiTely.  Or  we  may  say  its  value  in  om  and  its  valae  in  eicbi 
)  ooinctdent. 

Hr.  De  Quincey  introduces,  by  way  of  illustration,  a  phial  of  pri 
id,  bought  with  s  vie*  of  self-destruction.  "It  would  argue  g 
rity  of  heart,"  he  says,  "  to  view  in  the  light  of  a  nsefnl  thing 
en(7  whatever  tbat  bad  terminated  in  so  sorrowful  a  result  as 
le."  But  the  apothecary  does  not  necessarily  concern  btmself  with 
irpoee  of  the  buyer.  To  tbe  apotbecnry  the  use  of  the  article  is  i 
Inaas  an  object  of  exchange,  which  he  6nds  in  the  condition  of 
trkeC  Tbe  moat  frivolous  as  well  ns  the  most  useful  thing  msy 
rnish  employnient  to  industry  and  constitute  capital  and  wealth. 
The  mistake  in  regard  to  money  is  just  here :  it  is  in  concern  for 
itmment,  when  the  thing  we  need  is  the  obj^t  of  exchange — llie  i 
>dity.  An  instrument  of  exchange  being  attainable  in  au  eiiJi;t:< 
bt,  by  simply  writing  a  promise  and  calling  it  "  a  dollar,"  we  fanci 
me  to  be  thing,  and  thus  plunge  into  embarrassment  and  bankru| 
'e  buy  and  sell  goods  on  credit  (o  make  the  name,  when  we  sli 
herwise  bny  and  sell  for  cash,  tnd  have  the  thing  that  we  cannot  i 
lile  the  name  is  accepted  in  its  place.  We  really  change  the  nnit 
lade  ourselves  with  a  name,  when  with  infinitely  lees  sacrifice  of 
)  could  possess  monef  and  so  much  the  more  capital  and  wealth. 
Credit  fill  procure  cspital.  What  then  f  As  compared  with  inc 
edit  is  the  absence  oC  cspital  to  the  bnyer  and  to  the  country. 
ay  bny  goods  on  the  credit  of  a  bank  or  the  government,  initead  ol 
rn;  but  to  suppose  that  credit  oi^aniied  for  thin  pnrpose  performs 
nclion  of  money,  is  to  suppose  tbe  respeciable  b^^ar  aa  well  off 
naeful  in  the  community  aa  the  man  of  wealth.    It  pays  noU 


1869]  BAKKRUPTOT  AND  INSOLVBNOT*  191 

This  faDction  of  organized  credit,  instead  of  supplying  a  marketable 
commodity  to  locrease  the  business  of  the  country,  destroys  one,  sinks  the 
vsJaeof  the  commodity — the  dollar — and  drives  it  abroad.  It  is  precisely 
tbe  fonctioD  of  which  we  cannot  have  too  little ;  whereas,  of  the  market- 
able commodity  we  cannot  have  too  much :  because  any  natural  excess  of 
money  will  be  as  surely  and  as  profitably  exported  as  the  natural  excess 
of  any  other  commodity  which,  by  reason  of  such  excess,  falls  in  value 
nntii  it  meets  the  exporter's  demand.  It  is  impossible  to  separate  the 
dual  nature  of  money,  the' instrument  and  the  commodity;  and  if  we  put 
anr  other  instrument  in  its  place  we  lose  the  commodity  altogether. 

A  currency  of  debt  is  by  nature  the  very  opposite  of  money,  since 
debt  is  a  thing  to  be  paid  ;  whereas  money  is  a  thing  that  pays.  Tbe 
former  is  embarrassment ;  the  latter  capital,  when  offered  in  exchange 
and  wealth  always;  and  the  first -dollar  of  debt  organized  into  currency, 
instead  of  supplying  the  means  of  paying  the  price  it  creates  and  of  meet- 
ing the  contracts  based  upon  it,  becomes  itself  an  additional  contract  and 
a  demand  for  more  money  or  capital  to  pay  it  with.  Instead  of  satisfao* 
tioQ  it  is  hunger;  and  accordingly  we  find  the  greater  the  amount  of  cir- 
culating notes  and  bank  demand  deposits,  uncovered  with  specie,  the 
higher  is  the  rate  of  interest,  and  the  greater  the  distress  for  money,  until 
it  teaches  a  crisis  and  an  ultimate  settlement  in  bankruptcy. 

Id  the  hypothetical  case  under  consideration  the  individual  debtors 
pay  and  receive  equally,  upon  the  Clearing  House  principle;  but  one 
rascal  or  Shylock  among  them  would  throw  the  whole  settlement  into 
ooDfuston,  and  for  the  sum  of  dollars  that  he  would  grasp  unequally  they 
vould  be  insolvent  as  well  as  bankrupt,  inasmuch  as  one  could  not  pay  the 
other  throus:h  the  whole  line. 

In  the  difoussion  of  the  currency  question  I  have  had  occasion  to 
remark  that,  for  every  dollar  of  currency  annihilated  by  direct  contraction, 
there  must  of  necessity  be  about  ten  dollars  of  bankruptcy  in  the  com- 
manity.  Some  intelligent  friends  of  mine,  for  whose  opinions  I  entertain 
the  highest  respect,  have  not  been  able  to  agree  with  me  on  this  point, 
which,  it  seems  to  me,  Mr.  Gouge's  exampIeHllustrates  very  perfectly. 
Being  a  mere  roattor  of  illustration,  that  example  takes  no  note  of  the 
division  of  stock  or  of  the  natural  proportion  of  money  to  other  capital,  but 
merely  assumes  that  the  whole  property  is  circulating  capital,  to  be  bought 
and  K)ld.  In  fact,  however,  only  about  two-fiflhs  of  the  property  of  the 
community  is  ever,  I  think,  at  any  one  time  in  the  condition  of  circulating 
capital,  that  is,  in  market  for  sale  or  exchange  ;  and,  in  a  normal  condi- 
tion of  afikirs,  about  one-tenth  of  this  circulating  capital  is  money. 

Ilenoe  onr  imaginary  community,  wiih  the  aggregate  pi  ice  of  one  thou- 
sand million  dollars  in  circulating  capital,  would  have  one  hundred  million 


tvr  AXD  iKBOLTiHor.  [Mm 

■ii  ih«  contmctioD  of  Shy  millionn  of  cnmn 

Miilion  doIlRre  of  bAnkrupte^,  or  6t«  thouti 

o    hundred    ihouiflDd    individnals,  u  staled  in  t 

,.<:i<>  t«n  ihis  remit  be  Avoided  id  th«  ratio  of  the  cc 

...  Kucv  to  the  indebledneu  of  (he  oofDmuntt;;  but 

]  t'.jiiitlitj  of  adjuBtmeDt  as  in  the  ctM  soppoeed  ii  p 

.•ii'ens  to  owe,  in  proportioD  to  the  ralae  of  hie  wHtK,  nic 
.  ..  .  .'!  liuual  contractionof  the  cnrTency,  becomes invTltaliljint 
-  ".  :  ..';  bknkrtipt  Moreover,  a  ceneral  code  ofea-j  morality  p 
.:■-,■:. ^  lii'btors  in  dislrr ss  as  t?  helping  tbemaetves  to  the  pro|>ei 
■:>'i.s;  funning  and  highhanded  villiany  scramble  in  the  confuu 
.i^:^'!^!  crisis;  opportunity  and  privilege,  such  as  may  bo  enj'); 
ujk  director  or  bntik  favorite,  enable  some  men  to  avail  ibrimeli 
L'  than  iheir  equal  or  jiist  share  of  currency  and  capital ;  all  ihi 
lii-r  influences  render  an  equitable  settlement  of  debts  and  cred 
y  cri>iiora  factitious  currency  system  utterly  imponible  ;  snil  I  n 
lay  that  every  direct  contraction  of  one  dollar  of  such  a  ciirrfu 
wa»,  and  alwsTS  must  be,  accompanied  by  ten  dollars  of  absoii 
nov.  An  insolvent  is  no  leas  an  insolvent  because  be  tides  over  I 
It,  and  throws  his  debcit,  ihrotigb  cuDoing  or  privilege,  upon  utL 

let  as  apply  this  rule  to  the  present  condition  of  financisl  atfi 
country.  The  currency,  including  demand  deposits,  must 
[  six  hundred  millions  of  dollara,  according  to  my  estimate,  so  tl 
exchange,  which  to  day — February  23J — is  at  46  in  gr^enbu: 
I  to  9^  in  greenbacks  for  sight  bills,  before  specie  payments  c^n 
oed.  The  paper  currency  will  then,  of  course,  be  intercbangea) 
iney,  which  will  be  raised  in  value  to  an  equality  with  mercliandi 
we  can  ship  mercfaandii^e  as  pro6tably  as  money.  By  any  soIjh 
: I  contraction  this  will  involve  six  thousand  million  dollars 
lift-  and  insolvency.  Tiiere  is  nothing  wonderful  in  tliis  conulutii 
e  indebtedness  running  to  maturity  on  the  greenbai^k  unit  mu 
to  the  money  unit  in  demand  for  payment ;  and  this  is  the  tbeo 
.  contraction,  whether  gradual  or  rapid. 

rhen  any  soch  scheme  shall  be  pot  in  o^ration,  its  two  forces 
<,  so  to  speak,  will  innmediately  change  places.  It  will  not  loi 
jntrtirtion  of  the  currency  that  will  cause  the  baakrnptcy.  bat  il 
Icy  tl>at  will  contrac*  the  currency.  As  in  1860-61  the  bvn] 
t  the  North,  resnlnag  from  the  repndiation  of  debts  at  tli«  Sout 
•<l  so  larce  a  portion  of  tbe  demand  deposits  of  the  banks,  whic 
•  the  niMt  effective  part  of  the  currency  always,  that  tbe  aggn 


18C9]  BANKRUPTOr  AND  IKBOLYXKCT.  109 

gate  eorrenoy  of  the  loyal  States  fell  below  the  natural  an  1  necessary 
specie  yoluroe,  and  made  money  so  much  more  valuable  than  merchandise 
here  that  gold  poured  into  the  country  a  million  dollars  at  a  time  by 
Dearly  every  steamer  arrival  from  England  during  the  year  1861. 

So  it  will  be  again.  Contraction  may  begin  it,  but  the  positive  and 
negative  poles  of  the  scheme  will  very  soon  change  places.  When  bank 
accommodation  fails  bankruptcy  comes  into  play, soon  takes  the  lead,  and 
ooe  tumbler  here  and  there  knocks  down  a  whole  line,  until  the  securities, 
sgiiost  which  the  deposits  stand,  fall,  and  the  deposits  with  them.  Banks 
being  pressed  with  their  notes  must  redeem  them,  and  avail  themselves  of 
their  seouriiies  in  the  hands  of  the  Comptroller  to  purchase  greenbacks 
or  specie.  What  effect  this  will  have  upon  the  prices  of  government 
bonds  in  connection  with  the  general  pressure  of  individuals  to  realise 
upon  securities,  may  be  conjectured.  But  in  this  way  we  may  reach 
specie  payments,  without  doubt,  through  a  flood  of  bankruptcy.  It  is 
the  only  way  that  has  thus  far  been  proposed  in  Congress.  Is  there  no 
other  or  better!  There  is  a  better  way,  as  I  have  already  indicated  in 
this  Magazink. 

In  the  issue  of  October  last  I  suggested  supporting  two  separate  units 
and  currencies,  gold  and  greenback,  for  a  specified  time,  during  which 
indebtedness  fairly  contracted  by  the  greenback  measure  may  be  dis- 
charged in  greenbacks,  or  their  interchangeable  equivalent,  bank  currency, 
and  new  contracts  made  in  gold.  This  must  be  the  basis  of  any  equitable 
plan  of  relief  from  our  present  financial  difiiculties.  It  is  a  method  of 
indirect  contraction  that  will  save  harmless  every  man  who  is  solvent  at 
present  prices ;  those  who  are  not  so  cannot  expect  to  be  saved  by  any 
method. 

Since  writing  the  October  article  i  have  come  to  the  conclusion  that 
the  plan  may  be  more  simple  in  its  details,  and  more  speedily  accom- 
plished, than  I  had  before  supposed.  The  paramount  question  i$«,  does  a 
majority  of  Congress  really  desire  a  resumption  of  specie  payments?  If 
so,  the  only  obstacle  to  be  removed  is  the  principle  of  factitious  credit  in 
banking.  The  way  to  cure  a  disease  is  to  attack  its  source.  The  prin- 
cipleof  factitious  credit  is  bankruptcy.  The  banks  are  never  in  a  condition 
to  meet  their  payments  on  demand  according  to  contract,  even  when 
their  currency  is  called  convertible.  They  owe  hundreds  of  millions  of 
dollars  payable  on  demand,  more  than  are  possessed  by  the  whole  country, 
in  their  best  condition,  and  under  an  uncertain  forbearance  of  demand,  we 
are  as  practically  bankrupt  as  Mr.  Gouge's  example  represents  his  imag- 
inary commu  nity  to  be.  But  our  present  extra  muddle  come**  of  the  one 
hundred  and  fifty  millions  of  fictitious  credit  plunged  'Into  the  currency  in 
thefallof  1861,  with  subsequent   additions.      Extinguish  this  principle 


rSOHIBlTIOH  OV  XBI  OEajlnOAtlOm  OV   OBICES.  [Jhrd 

ankiiis;  •y«lam,  proipectively,  b;  uniog  tha  nncovered  itmn 
s  ofllie  banks  out  of  eii&tenee,  lh«  Us  to  take  effect  on«jeartfb 
iiig  of  tbe  net ;  prouJe  for  the  ToluoUfy  funding  •f  greeobad 
nmeOiAte  iisue  for  that  eiprew  pnrpoie  of  foar  or  five  ptr  e«i 
rear  bonds,  priacipal  and  interest  pajiable  in  gold,  everj  grew 
be  destroyed  ai  sood  m  funded,  anU  no  other  tegidation  in  legu 
B  pa^inenla  ar  tlie  varrencj  will  b«  necAsury. 
r  tbis  poIicT  paper  prices  could  not  fall  to  embarrau  debtors  ;  o 
rary,  they  would  have  a  tendency  to  rise,  which  would  be  checlu 
unding,  so  that  they  would  remain  com pi.ra(i rely  steady,  whi 
iild  gradually  fill  the  chaoDela  of  circulation,  without  panic  i 
ntil  by  an  inoreued  production  and  export  of  iderchandite,  * 
iccumulate  a  metallic  currency,  and  the  unoovered  paper  correni 
isappear  altogether, 

the  uncovered  paper  currency,  beeanse  a  notion  prevails  tbit  i 
rould  circulate  under  a  metallic  syttem.  Certainly  tbe  ban! 
irnish  certificates  of  depout  for  circulation  under  such  a  ^sten 
rence  being  that  they  would  have  coin  in  reserve,  dollar  for  dolli 
Dnch  capital,  which,  under  a  p^)er  syatem  they  have  not.  And  ti 
«  to  the  country  wonld  be  in  the  prodactioo  of  commodilies 
e  lor  gold  and  silver  that  ouder  a  paper  system  are  not  prodaoe 
irodncers  are  more  employed  and  enriched  by  a  metallic  systera,  ai 
regate  capital  of  the  country  is  augmented  accordingly, 
urrent  ooramercial  debts  of  tbis  country  mature  in  about  u««n 
the  average,  so  that  twelve  months  will  be  ample  time  lor  th( 
ment  on  a  gold  buis,  and  there  need  be  no  apprehension  of 
of  paper  contracts  under  the  certainti  of  tbe  withdrawal  of  ll 
edium,  as  no  one  willcoulract  at  pap«  prices  knowing  ibey  mn 
in  gold. 

<  other  plan  or  on  no  other  principle,  in  toy  opinion,  than  this  of 
currency,  temporarily  maintained  for  a  spMiflod  lime,  <an  i 
tie  bankruptcy  and  Insolvency  that  Ibrm  the  text  of  this  article. 


FMIlimiS  ir  TIB  CBITIFICITIOI  W  COECIS. 
-(sa  has  just  afforded  a  very  inconvenient  illustration  of  tl 
of  hasty  I^islation  upon  m^ttera  of  great  public  importaoc 
I  the  session,  a  bill  waa  introduced  prohibiting  National  Brnl 
-tifying  checks  otherwise  than  against  actual  depoails.  The  bi 
mbering  in  committee  fur  months,  was  finally  brought  up  u 
ID  (he  last  hours  of  the  Mssion,  almost  without  diacussioo,  » 
ty  the  iNte  Prcaid«it  among  his  very  last  acts.    Tbia  measur 


1869]  PROBIBITZOH  OF  THB  OEBTIVlOATIOtT   OF   CHK0K8.  201 

ifl  its  prc^ess,  reoei  ved  very  little  attention  from  the  banks  of  this  city ; 
not  because  they  did  not  appreciate  its  importance  if  adopted,  but  rather 
from  a  leeling  that  the  proposal  was  such  a  violent  change  of  the  estab- 
liibed  methods  of  business,  so  unnecessary,  and  so  boldly  innovating, 
that  it  was  not  likely  to  occupy  the  serious  consideration  of  Congress. 
Evidently,  the  banks  assumed  too  much ;  and  now  they  pay  the  penalty 
in  a  very  serious  inconvenience ;  an  inconvenience  which  could  have 
been  easily  averted  by  sending  a  deputation  to  the  Committee  having 
the  measure  under  oonsideration. 

The  law  falls  with  special  severity  upon  what  may  be  termed  the  Wall 
street  banks.  Institutions  doing  a  purely  commercial  business  find  little 
occasion  for  certifying,  and  with  them,  therefore,  no  serious  objection  is 
raised  to  the  regulation.  With  the  institutions,  however,w hose  exchanges 
represent  the  immense  financial  transactions  ot  the  stock  boards  and  the 
Gold  Room  the  case  is  very  different.  As  we  have  shown  on  a  previous 
occasion,  certificatiou  or  some  other  expedient  affording  substantially 
the  same  facility,  is  really  essentlia  to  effect  the  transfers  of  securities ; 
and  we  presume  it  is  because  the  prohibition  threatens  embarrassment 
to  this  particular  interest  that  it  has  been  adopted ;  for  it  appears  to  be 
taken  for  granted  by  a  class  of  legislative  regulators  that  the  crippling 
of  Wall  street  is  the  acme  of  financial  legislation.  It  may  be  well 
enough  for  the  law  to  define  the  general  conditions  and  limits  within 
which  banking  shall  be  conducted ;  but,  when  it  undertakes  to  determine 
the  method i  of  business  and  supersedes  that  prudent  discretion  with 
which  managers,  if  at  all  fit  for  their  duties,  must  be  credited,  it  becomes 
not  a  wholesome  regulator,  not  a  protector  of  the  public  interests,  but 
an  impediment  to  the  public  convenience,  a  drag  upon  business,  and  a 
rft>triction  upon  intelligence  and  economy  in  bank  management. 

Does  Congress  imagine  that  the  managers  of  the  banks  doing  a  Wall 

street  business — generally  conceded  to  be  the  shrewdest  of  our  bank 

officials — ^are  less  able  than  they  to  judge  of  what  is  prudent  and  safe  in 

thi^  matter  ?    Those  who  take  the  risk  of  certifications  ought  to  be  the 

l^st judges  as  to  the  prudence  of  the  usage;  for  they  are  the  parties 

who  reap  the  profits  and  bear  the  losses.    Besides,  tested  by  experience, 

no  plea  can  be  found  for  this  prohibition ;  for  the  banks  whose  business 

requires  certificition  find  the  losses  associated  with  the  practice  merely 

nominal,  and  the  avcn&ge  results  of  their  operations  are  at  least  as  satis- 

^tory  as  in  the  case  of  banks  which  find  no  occasion  to  certify  for  their 

customers.    It  cannot  then  be  said  that  the  law  is  required  to  protect 

the  depositors  of  the  banks ;  and,  if  not,  what  apology  can  be  ofifered  for 

its  intrusion  upon  the  statute  book? 

Hid  the  object  of  Congress  been  to  discriminate  in  favor  of  the  larger 


!02  FROBiDrnoir  ok  the  oiRTinoiTioir  or  ohkck'.       \Mari 

apitali»t«,  and  had  the  bill  been  so  entitled,  it  would  hare  be#ii  app 
)ria'ely  deKif;nated  and  well  adaptedto  its  end.  Firms  of  very  lai 
neani  and  high  credit  have  no  occaaioD  to  s»care  the  certiGcation 
heir  chpcks,  because  they  will  pass  anywhere  upon  the  strength  of  i 
Irawer'g  name.  Th«!re  is,  however,  a  very  large  class  of  housei  * 
hough  doing  a  perfectly  sound  business,  yet  do  not  enjoy  a  credit  st 
ient  to  give  currency  to  checks  for  Urge  amounts,  for  the  reason  t 
heir  capital  is  not  large  enough  and  their  position  is  not  suflicien 
:nown  ;  and,  in  these  cases,  before  a  check  can  be  accepted  in  exchai 
or  real  value  to  a  large  amount,  the  receiver  requires  that  the  ba 
rhich  is  presumed  to  know  intimately  the  drawer's  poaition,  shall  eu^o 
he  check.  If  the  bank  cannot  extend  this  momentary  credit  to  its  c 
omer,  tho  firm  la  so  far  incapacitated  for  transacting  business,  and 
rade  (alls  into  the  bands  of  a  wealthier  rival.  To  all  intents  and  p 
loaes,  therefore,  this  is  a  restriction  wl>ich  in  its  ffltct  must  be  dwii 
ive  to  the  business  men  of  nmall  m^ans.  We  allow  that  Congress  I 
lo  such  purpooe ;  but  if  the  act  were  carried  out  according  to  ihe  sp 
>nd  letter,  ruch  could  not  fail  to  be  the  result. 

Another  very  obvious  tendency  of  this  law  is  to  drive  deposits  fr 
he  National  to  the  State  Banks,  which  are  placed  under  no  such  eml 
■asaing  restrictions;  which  fact  produces  a  strong  revulsion  of  feel 
igainst  Congre»aional  control  over  the  banks.  If  there  were  no  me 
if  evading  this  prohibition,  oome  of  our  largest  banks  would  iiftni 
>tely  reorganize  under  the  Stxte  system,  even  (hough  it  were  at  ihe  c 
>f  sacrilicing  their  circulaiiun.  The  banks,  therefore,  make  no  secret 
heir  intention  to  violate  substantiidly  the  spirit,  although  observing 
Drm  of  the  law.  In  some  cases,  the  bank  endorses  the  check  "  acceptr 
low  far  this  expedient  may  be  a  spfeone,  we  do  not  at  present  enqu 
Ve  presume  that  the  design  of  this  furm  of  endorsement  is  to  con 
ut«  the  check  virtutilly  an  "acceptance;"  but  whether  the  Courts  wo 
iewitas  such,  or  as  an  intentional  evasion  of  the  law,  and  therefore 
'alid,  is  perhaps  open  to  question.  In  other  instances  the  bank  laaiit 
'due  bill"  to  its  customer,  which  he  deposits  in  the  same  instiiuti 
rhen  his  check  can  of  course  be  oeriilied  within  the  law.  Anotl 
spedient  is  for  the  bank  fir»t  to  grant  a  loan,  or  credit  against  »h 
he  customer  draws  his  check  and  receives  upon  ittheceri)6cati<  n  of' 
>ank.  In  each  of  iheee  cases,  the  customer's  account  is  made  gi>od  bef 
he  close  of  bank  hours  ths  name  day.  In  the  case  of  firms  bav 
ccounts  with  more  than  one  bank,  the  house  dravs  against  one  of 
lanks,  deposits  the  check,  without  certitii'ation,  in  another  bai>k,  t 
Iraws  a  second  check  sgsinat  the  depoait  thus  made,  which  the  sec 
>ank  certifies.     Where  the  banks  desire  to  get  rid  of  an  uodesira 


1869]  7INAN0K8   OF  THB  BTATB   OF   NCW  TORS.  203 

ttcoouDt  they  probablj  refuse  to  be  parties  to  any  of  these  alternatives; 
but  as  a  rule^  some  one  of  these  expedients  is  resorted  to  for  evading  the 
prohibition  and  its  penalties.  We  thinlc  an  enlightened  public  opinion 
will  sustain  them  in  the  course  they  have  adopted,  and  have  little  doubt 
that  when  Congress  becomes  better  informed  upon  the  question  it  will 
retract  this  hasty  legislation. 

Of  course,  there  are  parties  who  do  not  wish  to  oppose  the  law,  but 
rather  speaic  of  it  approvingly.  Among  these  may  be  classed  the  banks 
who  do  a  business  not  requiring  certification ;  the  wealthier  private 
laikers,  who  hope  that  the  prohibition  may  drive  accounts  from  the 
National  Banks  to  themselves ;  the  State  Banks,  which  chuckle  over 
every  attempt  to  fetter  their  rivals  under  the  national  system,  and  expect 
that  the  regulation  may  divert  business  to  their  institutions;  and,  finally, 
amonied  class  boasting,  not  always  intelligently,  of  its  conservatism 
vhich  applauds  any  and  every  measure  calculated  to  embarrass  the  Wall 
street  interest.  Opinions  from  any  of  these  sourccb,  however,  is  to  be 
estimated  according  to  the  mot*  ve  from  which  it  proceeds.  On  the  other 
hand,  a  large  body  of  honest,  capable  business  men,  who  have  the  misfor- 
tune not  to  be  in  possession  of  unlimited  means,  protest  against  the » 
measure  as  unnecessarily  and  almost  fatally  crippUng  them  in  their 
business  facilities,  Jf  put  in  practice. 


^^»^^^^m^^K^^I^^^^^*^m 


BEBT  AND  FINANCES  OP  THE  STATE  OP  NEW  TOBK— NO.  I. 

On  the  30th  day  of  September,  1868,  the  total  fundeddnbts  of  the 
State  of  New  York  amounted  to  $44,a68,786  40,  or,  if  we  deduct  there 
from  the  balanceflof  sinkinjor  funds  on  hand  at  that  date,  to  (38,864, 188  74 
These  debts  and  the  funds  set  apart  for  their  satisfaction,  are  clafsifiGd 
as  shown  in  the  following  exhibit : 

Debts  in  Sinktng  Bal  nee  of- 

^                                                                                 ^  08S.  fandp.  iiebf, 

JJcn»nlfand $4,707,826  40  $153,17    54  $4,5"4.n47  86 

CoQtugeiit |>»MM)00  15,517  82  52.481  1ft 

i:*al    14,«499'0'0  4,0ir.i8i  48  10,2:«.787  67 

^-nly    «5,M3,000  00  1,918,403  87  24.0  4.59113 

Aggegate $44,968.7b6  40        $»),  101,387  66       $3384.44874 

Ten  years  previous,  or  on  tlie  1st  OcUiber,  1868,  the  State  debts 
imoui.t  d  to  (  reneral  fund,  ♦6,605,654  37 ;  canal  debt,  $24,307,704  40 ; 
canal  'flo;  t  n^  debt,  $2,000,000,  and  the  contingent  debt  to  $770,000  00) 
133,583,358  77,  Excin  ling  the  bounty  debt  and  using  only  the  Rame 
denominations  as  they  now  stand,  it  is  observable  that  during  the  ten 
veara  the  debts  of  the  State  have  been  redeemed  to  the  extent  of  $14,- 
554,572  37. 

ORNXRAL   FUVD   DEBT    AND   SINKING   FUND. 

The  ••  General  Fund  Debt,"  as  now  constituted,  comprises  the  following 
denomioatioos  of  indebtedness : 


riNANOIS  or  THI   RATI   OF  MXW  TOBK.  [MM 

Wbm  Am'ls  Sep.  BH*  Aiiv 

Initlona.      •                                                        die.  to.  IRSS.     p.c    In  cm 

Inw-orifiSTaBdlB^ n  a-or*,  WMI.riaii  on   S   (»,a!S 

<tii  flock  {Uw*otlS4») Joljl.  un  IRl.fODW     T     t».M 

"  "        "    Jt  »i,  lero    wo.wwuo    t    +',00 

••  '•  "     JarTl.lsis     MO.IIOO  («     I     4S.IM 

'I        ^    >'->Hi«.      MB  10: 00    B    ;T.4fa 

*boiids(R.8.)lsnicd!Sli''"'li:!'"!lJ!    DaBud!       '  llisw  9t      B      i:M 


"   QtmotiaiBtfiaMi       MM-on.         MOOOOl      •      I.IA. 

nalttM  e  •i.lUllied Fernu  ut     111,MI  In      t      T.«l 

.uueudutKp.jtDglntaRiL Domuid.        l«.t(0  00 

debtindsiuiiullBUrait ii,TmfiM  »        (*»» 

followini;  Btaleinent  sbows  tbe  ooodilioD  of  the  6«aeral  Fund  D« 
lose  of  iha  Steal  yevs    1859 — 1863  indusi's. 

A  lor    Dffldni^   Conpt'Ta     Indlin    KotHr-     Total 
Ji.  atcek        liunr.  bo  di        ■luiDli'a.  lD(li.t.      im  11 

SB«  ,so«\SM,M8  8isn<.BinBstu«.'Mn  %  ■■-.  >s.t(e.«M 

Ul.inn    S.)MM18t    4TI.9I0  G8     lUBM  87    ixom    ^M^  K< 

BM.so  s.i-s,o><Bi  4^<«iom   jt'.msi   io.i«)  •.■isoi 

Ml.un    F,8ntl,c>48  B)    4  4,BI0  OS    IH-nltl  H7    4".<ni    KHI-XU 

Gni.BOO   B.SO-.O1S  W    4:v  !<"«<'  :li.>Mt  81    MlODO    S.'I».i« 

b«i.Boo  A.a.ti8Hn  4T1.U10SS   Ji^s->4ST  Gi.ODO  e,r.iM 

v.MW  i.»a,-»eai  <7*.«nn8  ia.6y4  b7  ii.wo  «,(i.,w 


lesstoists ti,t(is,6ai  OB $ue,4u  u  ti.'Wi.w 

nrds  the  payment  of  interett  on  iWn  debt  the  Btirplus  csra'  r 
ontribute  $350,000  and  the  print-ipil  is  paid  from  the  Oeic 
s  it  becomes  due.  The  amount*  ibus  conlributad  constitute  • 
d  tbe  General  Fuod  D^bt  Sioking  Fund.  Tbe  resources  1 
ements  of  this  fund  for  the  tto  years  ending  September  hO,  16' 
wn  in  the  following  yearly  accounts: 


ptiadp*]. 

Mi.'4Mi« 
t.(Ri.1»^  13 

!,>-.■  «»  e4 
4i«.oei  ta 


, i.osi.nin        i,ttt,en  1« 

year  1887-68  closed  with  a  deficienev  against  the  sinking  f 
Ling  to  {106,621  46.  Up  to  tbe  present  lime  only  tbe  83o0,i 
|>eci6eJ  bare  been  coniriliuted  in  anyone  year  frm  the  sur| 
•H  of  the  canaU  to  this  linking  fund.  By  Sec  1  of  Art.  7  of 
ution,  the  surplus  revenue  of  ibe  canal!>,  atler  paying  ihe  exp«i 
ection,  superintendence  and  ordinary  repairs  to  the  amount 
.000,  in  each  fiscal  year  after  June  1,  1855,  was  as'  apxrt 
{  fund  to  pay  the  interest  and  redeem  ihe  principal  of  tbe  'C: 
f  1846"  until  the  same  thunld  be  fully  paid.  By  Sec.  2  of 
irlicle  it  was  provided  that  when  a  sufficient  sum  should  h 
I'propriated  and   set   apart  auder  Sec  1  to  pay  tha   interest 


1869]  nKAVOKB  OF  THB  8TATB  OF   KSW  TORK.  205 

extinguish  the  entire  principal  of  such  Canal  Debt,  the  sum  of  tl,500,000 

of  the  surplus  revenues  of  the  oanals  be  set  apart  in  each  fiscal  year  as 

a  sinking  fund  to  pay  the  interest  and  reduce  the  principal  of  the  General 

Fond  Debt.  The  Gommissionera  of  the  Cnnal  Fund^are  now  in  a  position 

to   comply  with   Sec.  1  of  the  article   afore^^aid,    having  set  apart  and 

appropriated  a  sufficient  sum  to  satisfy  the  Canal  Debt  of  1846  and  the 

provision  of  Sec.  2  has  beome  fully  operative,  and  henceforth    the  surplus 

revenues  of  the  canals  will  contribute  annually  tl,500,000  to  that  Sinking; 

FuncU    This  will   provide  a  fund   for  the  payment  of  the  interet^t  and 

the  redemption  of  the  entire  principal  of  the  General  Fund  Debt  by  the 

dose  of  the  fiscal  year  1871-72.    A  large  pait   of  the  debt  is  as  shown 

above  payable  at  pleasure  and  only  1 1,700,000  has  to   run  beyond   the 

}ear  ^ped6ed,  so  that  no  large  amount  will  require  to  be  invested  to 

meet  the  final  extinguishment  of  the  debt. 

CONTINGENT  DEBT. 

The  Contingent  Debt  of  the  State,  arising  from  loans  of  its  credit 
to  corporations,  was  incurred  previous  to  the  adoption  of  the  Constitution 
of  1846,  which  prohibited  the  giving  or  loaning  the  credit  of  the  State 
io  aid  of  any  individual,  association  or  corporation.  On  the  1st  February, 
1842,  these  liabilities  amounted  to  $15,285,700,  while  on  the  30th  Sep- 
tember, 1868,  they  had  been  reduced  to  $68,000,  partly  by  payments 
made  by  corporations  and  partly  by  their  assumption  by  the  State  as  a 
portion  of  the  General  Fund  Debt.  Of  the  whole,  *3,665,700  was 
assumed  by  the  State  and  $1,502,000  paid  by  the  bene6ciaries.  The 
following  table  shows  the  original  amounts  and  the  mode  of  their  disposi- 
tion: 

Ontitand- 

Amount  Assnined  Pa'd  hy    ing  Stpt. 

BcnellcUrieB.                                                 >eb.  *49.  bybtate.  Comers.     8U,  1868. 

BeUiware  &  HadsoD  Canal t»>^,Oi!0      $ tSuO.OOO         

New  York  &  Erie  HailrcMicI 8,«00,(H);)  8,000.000       

Canajoharie  &  Catsklll  Ral  road ,      200,000  200,000       

lUkaci  A  Owego  hailr  ad 81.  ,'00  815,700       

Aoburn  &  •♦yrncnae  Ri'lroad 200,000       £00/00         

AQbtin  &  R  che«>ter  Ran  Odd 200,000       2GO,0CO         

Hodfon  A  Bcrkahfre  Railroad 15(MK0  160,(;00      

Tioea Coal,  Iron  M.&Manufg Co 70,0(0       70,(00         

Tonawanda  Haliroart...  1(0,000       100,0no         ..  .  . 

UmgMnndtfWroad 100,000       ^'S,  00         68,000 

ttcheneLtady  &  Troy  Railroad 10,000       lOO.loO         

Totsl...   $5,285,700    $8,665,700    |L.C02,0C0       $68,000 

The  Long  Island  debt  was  redeemable  August  1st,  1861,  but  under 
chap.  86,  Laws  of  1858,  the  payment  was  deferred  to  187G  and  the  rate 
of  interest  reduced  from  6  to  5  per  cent. 

INDIAN   AKNUTIES. 

The  amount  of  Indian  annuities  payable  to  sundry  tribes  under  the 
Beveral  treaties  with  them  being  (Cayugas  $2,300,  Onondngas  $2,430 
Senecas  $500,  and  St.  Begis  $2,131  67)  $7,361  67,   would   require  an 


}6  FISAVCn  OF  THI  BTATl  Or  RIW  TORE.  [MtTcl 

Testment  at  6  per  cent,  amounting  to  tl22,fl94  87,  and  at  this  Ggui 
i«  anouUiei  are  cfpiUlieed  and  >ccoaDted  for. 

cAtriL  DEBr. 
This  c^parate  debt  of  the  State,  which  «u  crested  for  (be  consliu'^lio 
id  enlargement  of  the  Slate  caoals,  anonDted  oa  the  30th  S-.-ptenib(i 
168,  lo  #14,249,960,  having  been  reduced  b;  purchaae  and  oancelU^ 
iriiig  the  jear  then  ending  by  the  aum  of  11,483,100,  and,  since  lli 
tabllibm«nt  of  the  sink ing  funds  nnder  the  cooatitntioD,  fiom  its  nuu 
mm  amount  by  (16,646,328  26.  It  is  also  &  bet  that  the  sibkiD 
ads  he'd  at  the  date  mentioned  from  rarplaa  reveaues  set  apart  fi 
JemptioD  of  oatstanding  stocks  amounted  to  tlie  sum  of  t2,230  701 
le  auiUMl  canal  debt  to  be  provided  for  is  therefore  only  tlO,232,7^7  5' 
le  fullowing  statemetit  shows  the  deDomioatioD  and  amount  of  cam 
cks  ouUUnding  September  30,  )8U8  : 


louldebt t  l,»tl,HO        t),Sb6.  00       tli.lt9.>t 

SddiuI  tsurert SltR.OM  «111,7St  «S31,SI 

Dbe  tola]  Canal  debt  on  the  30lh  September,  1858,  was  923,460,014  48 
,  tbe  inier«st  on  that  som  tll,400,rjO  80.  In  the  Ubie  which  follow: 
show  its  progrers,  increase  and  decrease,  jearly  for  the  ten  j^ean  siaci 
t  date  : 


Debt  e>'piu 


hOTTOHld.       MlMm  d.  __,..    .. 

1    r.s«,i';o(iatN.w~,8M  t8 

,  s.i»n.ft«  o)  i.Kv.'^ts  00  »,ioi.m  ta 

.    l.iOU,u.O  00  S,1T-',SSI  n  »i,ial.T70  Si 

.       3,IMiW)0a  HOlLTTUiS 

■raa.wcno  s»j«8,-a)» 

»3is7ieoo  M44i,7';oiB 


v.'.'.'.'.'". ],iss.t«)oo  i*,M».ii60  uo  a,»M,wi  li 

t  thus  uppears  that  the  aggregate  debt  bas  been  reduced  \a  ten  yean 
I  $24,460,014  43  to  ♦14,249,960,  or  by  the  sum  of  ♦10,210,054  48. 
uded  in  tl>i&  reduction  is  the  full  amount  of  the  old  Canal  debt,  which 
zr  thecoDstiCutioo  of  1846  was  to  be  paid  before  the  General  Fond 
t  conld  receive  the  full  benefit  of  the  surplus  Canal  revenues  appro- 
Led  to  its  liquidation.  For  the  first  time  in  our  financial  history  the 
ent  year  will  experience  a  disembarrassed  Tieasary,  and  ourselra  a 


1869] 


FINAN0X8   OF  THK   BTATX   OF  NBW  TOIUL 


207 


Tttt  relief  from  the  taxation  which  has  been  the  inevitable  result  of  the 
pressure  of  the  debt  with  which  we  have  had  to  deal.  We  have,  indeed, 
orercome  all  our  responsibilities  of  old  date,  and  have  now  only  to  stand 
up  manfully  and  pay  honorably  that  debt  o(  patriotism  which  we  shall 
describe  undd  the  head  of  the  Bounty  Debt. 


BOUNTY   DEBT. 

On  the  SOth  September,  1868,  the  outstanding  stocks  and  bonds  repre- 
senting this  debt  amounted  to  $25,043,000  classified  as  follows : 

Bcfirt^red  stock $88,757,003 

Coupon  bonds S,lb5.000 

CoffipiroUer*B  feytirae  bood  noconTerted 1,000 


Total  amount  Sept.  80, 18S8. 

18tt7. 


k» 


tl 


fvft,«M8,000 
2(i,8ti-2,«  00 


BedncUon  per  Binking  taixd  in  1887-08 


$919,000 


This  debt  was  created  by  laws  of  1865,  cap.  325,  which  act  also  created 
a  special  sinking  fund,  on  the  basis  of  a  tax  equivalent  to  pay  the  annual 
interest  thereon  (7  per  cent.)  and  the  principal  in  twelve  years  from  the  date 
of  the  passage  of  said  act,  and  hence  the  iihole  debt  must  be  cleared  off  by 
tbe  I7th  April,  1877.  The  first  tax  for  this  purpose  was  for  the  fiscal  year 
eoramencing  October  1,  1866,  and  called  for  two  and  one-eighth  mills  on 
Ibe  hundred  dollars  valuation,  which  produced  $3,295,619  33.  This 
amount  whs  inadequate,  and  in  the  succeeding  year  the  tax  was  paised  so 
as  to  produce  $3,953,911  66  for  that  year,  and  $658,292  33  to  make  up 
the  deficiency  of  the  previous  year.  In  1867-68  the  product  of  the  three 
mill  tax  was  $4,892,476  22.  The  following  gives  in  detail  the  operation 
of  this  fund  for  that  year  : 


BJECSITE  "D 

B  lance  Oct.  1, 1867 '. $473,609  19 

ProdncToftax 4,8W,476  » 

InteRBtoniiiYMtmenta 8,685  00 


$5,368,610  84 


PAID. 

Interest  on  de^t $1.871,SCi0  94 

o<«t  of  itiyeftmenta 1,C54.»80  00 

Aaraud  Interest 936  '14 


Preuiiam  on  B.ocks  pnrc, 


69,581  70 
$9,096,199  47 


Leaving  in  the  Treasury  an  uninvested  balance  of  $2,372,411  37,  subject 
to  the  direct  liquidation  of  the  debt.  Between  the  date  of  this  return  and 
January  1,  1869,  a  further  sum  of  $470,000  had  been  expended  in  the 
purchase  of  interest-paying  stocks  and  bonds. 

These  exhibits  are  highly  satisfactory.  We  at  once  recognize  tie  fact 
that  our  Stste  debt  is  being  rapidly  taken  up  and  that  taxation  for 
debt  purposes  will  soon  disappear.  There  is,  however,  a  large  local 
debt  wlich  must  be  paid.  The  far  largest  part  of  this  has  accumu- 
lated at  the  great  npetropolitan  centres,  as  will  be  seen  from  the  following 
statement,  which  shows  also  the  objects  for  which  the  liability  has  been 
contracted : 


THB   BKCHKTART  OT  TBK  TRBABUKT.  [Jfd 


Klng-e J,«-B.ui001)    IT.lif.ttO  CO   JO.WT.l 

Altany 1.M^SSO^O     l.-Vfl.OOO  00    l,n4.£U0  00     tno,5 

)T  oUer  CoDtitlei n.l-jMW  10     Il,t9^';!>ri  tS    aSJ.aw  EB     I.SIT,  9«  U    ail,M,i 

IcUl |8l,^S£.7<b  10  SlU.e81,1tfi  81  |ttE,SM  «fi  $n.lM.ln  X  <Bl,HJt,C 

The  aggregate  Stale  Hod  lucnl  debt, aa accounted ToriD  tlie figures gi 
was  tit  dale  aa  follows : 

JIMeDebt tW.WO.: 

CunaiirindoUKrIaMlSabt K,SIH.O 

Total »liS,m,t 

An  avernge  of  6  per  cent  for  intereBt  calls  for  17,714,308  39  aonu 

ind  n  similar  amount  oiiglit  to  be  paid  off  each  year.     The  raluatioi 

taxable    property  in    the   State  is  tl,6£;t,419,S7l,  ao  that  lem  tbati  1 

3ent  on  this  vuluation  aaugsed  nnnunll}'  would  clear  off  the  whole  ' 

fery    few   year*.     Distributed    among  a  population  of  4,000,000 

limply  an  annual  charge  of  t3  66  per  capita. 


THE  8ECRETAKI0F  THE  TREiSUBT. 

Notwithstanding  the  uDcertainty  which  haa  prevailed  since  the  fin 
>ie  month,  as  to  who  should  be  the  Secretary  of  the  Treasury  under 
lew  administration,  there  has  been  a  buoyant  conSdence  in  linancial 
lies ;  an-1  when  it  was  announced  that  Mr.  Georgn  S.  Bnutwell,  of  Ma 
ihu setts,  would  lake  the  vacant  office,  thare  was  an  almost  immed 
idvance  in  Government  bonds  both  here  and  in  London.  Nor  is  th! 
>e  wondered  at,  for  Mr.  Boutwell  is  well  known  as  no  earnest  sdvo 
)t  conservative  financial  reform.  That  he  ia  an  able  administra 
iflicer  he  gave  conspicuous  proofs  when  in  1862  he  was  entru 
vith  the  organization  of  the  new  Internal  Revenue  Bureau.  The  pu 
lave  had  unusual  facilities  for  knowing  his  fitness  foro0ice,andsltfao 
n  the  history  of  the  Republic,  a  Secretary  of  the  Treasury  has  nt 
irobably  been  appointed  whose  qualifications  were  submitted  beforeh 
o  a  more  var'ed  aeries  of  tests,  never  has  such  an  officer  on  taking 
eals  of  oflics  been  greeted  by  such  hearty  generous  universal  welco 

Apart  from  these  personal  reasons  why  iha  public  have  confidenc 
tfr.  Secretary  Boutwell,  there  are  motives  at  work aflTecting publico] 
on,  of  a  more  general  nature.  Formerly  it  was  of  little  imporli 
vho  was  entrusted  with  the  control  of  the  Treasury  Department, 
'cvenues  of  the  government  were  comparatively  small,  and  except  by 
iustonis  duties  which  bring  the  revenue  officers  into  direct  contact  \ 
10  more  than  a  few  th^iusands  of  our  citizens,  the  Secretary  of  the  T 
ury  drew  lightly  on  the  pockets  and  disturbed  but  little  the  syn: 
hies  of  the  people.    His  patronage  was  small  and  his  powers  were  inc 


1869]  TBS   8S0RBTABT   OF  THB  TRBASURT.  209 

dderable.  Since  the  war,  however,  all  is  changed.  The  subordinates  of 
the  Treasury  are  counted  by  thousands,  and  the  patronage  of  the  office  is 
immense.  We  have  a  colossal  debt,  and  we  are  going  to  attempt  during 
the  lifetime  of  this  administration  to  ease  the  pressure  of  this  debt  by  the 
expedient  of  lowering  the  rate  of  interest.  Two  thousand  millions  of 
our  bonds  are  aiioat,  and  the  Secretary  of  the  Treasury  is  the  officer 
whose  counsels  will  guide  the  legislation,  and  whose  energies  will  execute 
the  decrees  of  Congress  relative  to  this  vast  mountain  of  national  obli- 
gation. At  the  least  he  will  have  to  deal  directly  with  that  part  of  the 
pablicdebt  on  which  a  lower  rate  of  interest  is  to  be  put. 

Again,  instead  of  being  as  formerly  the  great  untaxed  Republic,  we 
groan  under  the  heaviest,  most  vexatious  most  inquisitorial  and  most 
cumbrous  tax  system  in  Christendom.  To  the  Secretary  of  the  Treasury 
we  look  to  give  us  fiscal  relief.  In  the  Cabinet  he  is  the  only  officer  who 
represents  our  fiscal  needs,  and  he  is  the  only  Cabinet  officer  that,  under 
the  Constitution  is  authorized  to  communicate  with  Congress. 

Thirdly,  he  has  the  care  of  the  Government  purse,  and  that  purse  con* 
tains  usually  some  ninety  millions  of  gold.  A  very  small  part  of  this 
coin  sold  by  the  Secretary  at  an  inopportune  moment  may  throw  Wall 
street  into  convulsions  and  almost  shipwreck  public  and  private  credit. 
Movements  on  the  part  of  the  Treasury  have  sometimes  produced  the 
most  disastrous  evils  when  those  movements,  though  well-meant,  were 
ili-iodged  or  ill  timed. 

Now  in  Mr.  Boutwell  we  have  an  officer  whose  public  record  and  pri- 
vate chiracter  are  equally  without  reproach.  He  is  too  honest  to  use 
the  vast  powers  of  the  Treasury  to  disturb  financial  affairs,  eith3r  from 
caprice,  or  with  a  view  to  make  money  for  himself  or  his  friends.  He 
is  too  wise  to  recommend  or  adopt  any  timid,  halting  or  narrow  policyj 
At  critical  junctures  of  the  money  market  every  fibre  of  the  body  politic 
thrills  in  response  to  the  doings  of  the  Secretary  of  the  Treasury,  and  it 
is  becaase  of  Mr.  Boutwell's  proved  fitness  for  the  special  task  intrust«>d 
lo  him  that  his  appointment  is  hailed  with  such  general  satisfaction  and 
confidence. 

It  is,  of  course,  premature  to  attempt  to  sketch  out  the  policy  which 
Mr.  Boutwell  will  urge  upon  Congress  and  the  new  administration.  On 
all  the  important  financial  questions  of  the  day  he  has,  however,  an 
honorable  record.  He  gave  his  best  support  to  Hooper's  bill,  forbidding 
farther  issues  of  gold  bearing  bonds.  In  his  place  in  Congress  he  has 
again  and  again  declared  in  favor  of  paying  the  public  debt  in  coin. 
His  views  on  the  funding  of  the  debt  are  conservative.  Consistent  in  the 
hostility  with  which  he  has  attacked  repudiation  in  every  form,  he 
believes  the  only  way  to  reduce  the  pressure  of  the  debt  is  to  lessen  the 

4 


aggregate  ■mount  of  the  intereat  tberecHi.  With  Uiu  vieir  he  ia  in 
of  the  r<'Uowing  expedients :  He  would  first  place  Uie  priodpal  hi 
i«ach  of  the  repncli&tora  by  aolemDlj  pledging  the  faith  and  credit  ( 
nation  to  its  payment  in  gold.  Secondly,  he  would  rednca  the 
aa  rapidly  aa  the  national  means  and  ability  will  allow.  Third! 
would  give  strength  to  the  credit  of  the  goTermnent  by  an  equ 
aystam  of  taxation,  aa  honest  collection  of  the  revmuc,  and  a  vij 
aoonomical  admin  iatratiou  of  the  govemmenL  Fourthly,  he 
refuse  to  pnt  in  jeopardy  the  Gnanaial  stability  and  industrial  pro^ 
of  Uie  country  by  any  rash  manipulation  of  the  currency,  or  by  an 
den  violent  attempts  to  resume  specie  payments.  SUU,  if  we  a 
miunformed,  Mr.  Boutwell  la  a  hard-money  man.  At  any  rat< 
vehemently  opposed  to  any  further  isBuea  of  currency  under  any  p 
whatever.  On  theae  points  he  made  the  following  oheervatiKia  i 
others  in  his  speech  of  July  21,  1868,  on  the  Funding  bill : 

"  Wbmi  we  btned  fiva  handred  m  it  ioni  of  FiTc-Twrnties  wb  ilipulatei) 
poblic  irediUn  that  tb*  Ueit«d  StslM  notn,  known  a*  pvmbaeka,  sbotild  m 
iHUed  in  exom  of  four  hnsdnd  miUkmB.  Tbkt  was  tha  fint  itipoUtioo 
■tcoad  *tipal>tion  wu  that  w*  woolJ  oot  eompel  pajmeot  nndar  five  jeu 

u  ailipnlatkaaT«rSDdaboTe  tha  law,  iDbercot  in  Um  TCT7BatiiT«<ifi 


1  tha  expaiienca  and  traditioo  t>t  all   numtind,  that  arer*    i 
ictuated  1^  an  honeat  porpoaa,  if,  wh'  n  alra^liiiR  with  vieinltad 

o  Toread  kaoa— an  •stnacdinaTT  meana  of  raiaing  mooay,  I7  « 


waa  impaired  and  ita  aecnritiea  arc  forced  below  tlie  par  nine  of  gold — ibat 
DitiMi  iboald  make  every  booeet  effort  pttiible  for  themnmptionaf  ipedepa 
and  the  reatoration  of  ite  paUie  credit.  That  obligitioa  reat*  npcn  n*.  J 
aceocdiDgto  the  t«nnt  of  tha  act  of  1864  it  doca  not  appear  b^ond  all  caril  t 
might  not  paj  theae  bonds  in  gieenbaeka,  in  (he  aame  act  it  doe  Appear  II 
•uul  Bew  iaane  mora  than  fonr  bondted  milliooa  of  gTMobac^* 

Possessing  such  a  record,  the  country  looks  forward  to  Mr. 
well's  admLnistratioD  of  the  Treasury  Department  with  great 
■dence. 


TH8  BIUTI8H  CIFIL  IBKTICE. 

The  agitation  of  the  question  of  reform  in  the  civil  service  0 
United  States  has,  of  late,  eicited  much  attention  throughout  the  con 
And  on  this  account  Tacti  respecting  the  workings  of  the  appointmea 
tem  in  countries  where  the  civil  service  has  been  most  nearly  perf 
are  of  more  than  ordinary  inl'treBt.  Probably  the  best  of  the  several 
pean  systems  is  that  adopted  in  Qreat  Britain,  concerning  which  1 
respondent  of  the  New  York  JUiuning  Pott  gives  interesting  facts. 
OPKN  ooupirinoM. 

The  Commissionen  after  their  appointmeat  first  established  reaio 
and  well-ooDiidBred  r^ulations  as  a  basis  for  thdr  oparaltons,  and  1 


1869]  na  BBimn  oivil  bbbtios.  211 

these  soon  b^an  their  labori.  DuriDg  the  first  jear  there  were  only  a 
f«w  isolated  cases  of  competitive  eiamination ;  yet  even  these  were  suffi- 
cient to  justify  the  following  favorable  summary  in  conneclioQ  with  them 
contained  in  their  first  report,  issned  in  March,  1856 : 

"  We  do  not  think  it  within  our  province  to  discuss  the  expediency  of 
adopting  the  principle  of  open  competition  as  contradistinguished  from 
examination,  bnt  we  must  remark  that  both  in  the  competitive  examina- 
tions for  clerkships  in  our  own  and  other  offices  those  who  have  sue* 
ceeded  in  obtaining  the  appointments  have  appeared  to  us  to  possess 
considerably  higher  attainments  than  those  who  have  come  in  upon 
simple  nomination,  and  we  may  add  that  we  cannot  doubt  that  if  it  be 
adopted  as  a  usual  course,  to  Hominate  several  candidates  to  compete  for 
each  vacancy,  the  expectation  of  this  ordeal  will  act  most  beneficially  on 
the  edacation  and  industry  of  those  young  persons  who  are  looking  for- 
ward to  pablie  employment." 

Farther  on  the  report  says : 

'*  We  admit  that  there  may  be  aptitudes  for  the  transaction  of  business 
which  cannot  be  discovered  or  measured  by  our  process,  but  it  is  never- 
theless certain  that  our  examination  furnishes  the  means  of  excluding  the 
iocompetent,  and  where  competitive  examinations  take  place,  or  the  can- 
didate submits  himself  to  voluntary  examination  in  extra  subjects  his  intel- 
lectual qualities  may,  to  a  greater  extent,  b^  accurately  ascertained." 

The  first  paragraph  quoted  above  met  with  approval  from  the  public  and 
the  treasury.  The  former  was  desirous  of  obtaining  men  of  ability  for  the 
service ;  and  the  latter,  besides  being  actuated  by  the  same  laudable 
desire,  hailed  the  innovation  with  pleasure  as  augmenting,  to  a  con- 
siderable extent,  government  patronage.  Instead  of  conferring  one  favor 
in  every  case  of  vacancy,  they  would  be  in  a  position  to  oblige  three  sup- 
porters, which  was  no  inconsiderable  accession  of  power. 

The  first  report  of  the  Commissioners  made  it  evident  that  the  feeling 
ol  these  newly  constituted  authorities  was  in  favor  of  the  competitive  sys- 
tem ;  though  up  to  this  period,  the  only  security  gained  was  the  inability 
of  the  government  on  future  occasions  to  burden  the  State  exchequer 
for  the  maintenance  of  ignorami  and  non-entities. 

8S00ND  TEAR. 

After  another  year's  experience  the  Commissioners  issned  a  second 
report.  Besides  confirming  their  previous  expression  of  opinion  on  the 
desirability  of  general  competition  in  a  limited  form,  it  contained  certain 
aUosions  to  a  subject  which  made  it  clear  that  an  attempt  had  been  made 
to  interfere  with  the  independent  exercise  of  their  prerogative.  A  public 
department  had  requested  them  to  transmit  the  examination  papers  of  a 
rejected  candidate,  thus  expressing  a  suspicion^  either  of  the  competency 
or  impartiality  of  the   Commissioners   ?r  their  staff  of  examiners.    This 


319  TBI  BRITIBH   CITIL  SXSTICI.  [ift 

demand  *U  veiy  ftop^rlj  met  vith  &  decided  rcfaeat,  tfa«  reuona 
which  are  daUiled  in  the  following  ezpl&Dation,  taken  from  the  ki 
report; 

"  We  felt  that  if  we  ahaodoDed  on  the  part  of  cnrselves  and  ol 
asistaDt  examiners  the  privilege  invarislilj  exerciaed  by  persons  perf 
ing  functions  oflhis  nature,  OT  exercising  an  independent  judgment  i 
the  performaoees  of  the  (aodidale  viiLout  the  review  ofanj  exti 
aulhorilj,  it  would  be  quite  impossible  that  ihe  inridioos  duUei  enin 
to  ua  could  bejuul;  and  effectively  executed." 

The  same  report  alEO  aela  forth,  as  a  most  material  poiot  io  the  d 
of  candidatea,  that  ever;  available  guaranty  as  to  good  character 
integrity  should  be  insisted  upon.  The  reiteration  of  this  aroeefron 
fact  that  mora  than  one  person  of  questionable  reputation  had  atten 
to  gain  admisiioD  to  the  eervioe  during  the  two  jeara  of  the  operaiio 
the  Commisaion. 

THIRD  TUE, 

During  the  tb?M  year  of  the  new  sjstem  certain  offices,  which 
not  been  put  under  the  jurisdiction  of  the  examiners,  were  included 
those  already  acknowled^ng  iL  The  original  exceptions  aroee  froa 
disinclination  of  a  fsw  old>faahioied  heads  of  departments  to  subm 
an  innovation  in  the  mode  of  providing  them  with  aaustants. 
revuhicn  of  feeling  must  be  accepted  as  strong  evidence  that  they 
teen  good  and  sufficient  reasons  for  altering  their  views,  and  that  th< 
length  entertained  a  Gtvorable  opinion  of  the  working  of  the  new  tyt 
For  the  aame  reasons,  no  doubt,  the  East  India  Company,  which  was 
ib  exiElenoe,adopted  the  plans  of  the  Commieaiouers,  and  begged  theli 
to  assist  (bem  in  regoUUng  the  eiaminations  which  they  had  resolve 
impose  npoQ  the  incoming  servants.  This  fact  la  spoken  of  «ith  n 
s«ir  congratulation  in  the  third  report,  which  dealt  with  the  eiamiDsl 
of  1857,  the  firat  year  when  compelitioaa  began  to  be  generally  reso 
to.  They  had  jnst  cause  to  hail  the  circumstance  with  pleasure,  I 
much  as  the  East  India  corp<M«tion  had  been  renowned  for  its  very 
dent  staff  of  cervants.  It  was  paying  an  eapecial  compliment  to 
Commisuouets,  this  adoption  of  their  ideaa,  and  increased  the  p( 
confidence  in  their  efforts. 

With  reference  to  the  competitions  there  appears  a  tone  of  regre 
the  report  that  they  had  not  been  open  to  all  who  were  deairona  of  i 
tasting,  bnt  bad  been  limited  to  peraoaa  aeleetad  by  the  aolhoritie*. 
most  oases  there  bad  been  three  persona  nominated  for  each  appointn 
and  the  duties  of  the  CommisaiotMia  were  confined  to  the  selection  of 
most  worthy  among  them.  The  qneation  which  suggested  itaelf  in  < 
necbon  with  ths  ch^ots  to  made,  was,  whMher  the  nccesalnl  candidi 


1869]  THB  BRCTIBH  OITIL  BBRTIOl.  213 

in  these  competitions  were  superior  to  those  who  had  obtained  certificates 
without  a  contest.  As  a  reply  to  this  query  we  may  quote  the  para- 
graph in  the  report  which  bore  upon  this  point  • 

"  We  have  instituted  coropftrisons  between  the  two  classes  ot  candi- 
dates, and  we  have  ascertained  that  the  best  of  the  successful  competitors 
have  displayed  much  higher  attainments  than  the  best  of  the  candidates 
who  did  not  undergo  the  ordeal  of  a  competilion." 

There  was  also  an  expression  of  opinion  favorable  to  the  custom  of 
including  several  vacancies  in  one  competition,  and  nominating  a  propor- 
tionate number  of  candidates  to  be  examined  for  them  en  maaee^  when 
the  highest  on  the  list  should  be  entitled  to  fill  the  vacancies  in  order  of 
merit. 

A  near  approach  was  made  to  open  competition  on  one  or  two  occa- 
sions, but  there  were  certain  restrictions  made  which  aeprived  them  of 
any  claims  to  be  classed  as  perfectly  free  contests.  Commui  ications 
were  addressed  to  Yarioua  masters  of  pablio  schools,  and  to  them  was 
accorded  the  privilege  of  sending  in  certain  names  which  were  to  com- 
prise the  list  of  competitors.  This  right  was  deservedly  appreciated,  and 
the  candidates  flocked  in  in  great  strength.  The  trials  took  place,  and 
the  results  were  most  gratifying  to  the  instigators  of  them.  As  a  proof 
of  this  we  again  make  use  of  their  own  report : 

**  In  reporting  upon  the  competitive  examinations  which  have  taken 
place  under  our  superintendence  we  feel  it  to  be  our  duty  to  avow  our 
continued  convic*ion  that  the  selection  of  persons  for  junior  situations  in 
the  civil  service  by  competitive  examination,  combiDed  with  the  proper 
conditions  as  to  the  age,  health  and  character^  and  with  the  check  of  a 
period  of  probation,  and  with  promotion  by  merit  from  clnes  to  class,  is 
the  best  mode  of  providing  for  the  public  service.^' 

This  opiuion  was  approved,  even  before  it  was  published,  by  two  reso- 
lationsor  the  House  of  Commons.  On  the  second  occasion  the  following 
expression  of  approval  was  agreed  to  without  a  division  : 

"That  in  the  opinion  of  this  House  the  experience  acquired  since  the 
issuing  of  the  order  in  Council  of  the  21st  of  May,  1855,  is  in  favor  of 
theadoption  of  the  principle  of  competition  as  a  condition  of  entrance  to 
the  ci\ il  service ;  and  that  the  application  of  that  principle  ought  to  be 
extended  in  conformity  ^ith  the  resolution  of  the  House  agreed  to  on  the 
24lh  day  of  April,  1856." 

Aboat  the  same  time  a  parliamentary  committee  strongly  recommended 
the  adoption  of  open  competition  for  the  selection  of  county  and  distri  2t 
snrveyersin  Ireland,  to  be  conducU'd  in  the  same  way  as  the  open  exa- 
ininatioQs  for  admission  to  the  engineer  and  artillery  branches  of  the  mili- 
^7  service.  Thus  every  recognized  influence  tended  to  establish  and 
even  extend  the  new  system . 


S14  TKB  nmsB  oim  bxbtios.  [Jfi 

UTXK  RKBDLTS. 

Since  1856  the  reporti  of  tbe  Ct7il  Servio*  OommiMiffnen  have  1 
iuued  SDnually.  Year  by  yeiir,  for  some  fire  or  ftix  years,  they  nidi 
additional  sTgnmenta  in  faror  of  oompeti^Te  eiamiDationa,  at  then 
even  noir  regnlated  ;  but  thej  have  inTariably  refraioed  from  dUcni 
the  expediency  of  adoptiDg  the  principle  of  open  competition  ii 
broadest  seoM.  Kecourea  has  been  bad  to  it  in  Mveral  instancea,  g« 
ally  in  connection  trith  Indian  civil  service  appointments.  The  inb 
of  examination  in  these  case*  have  been  both  various  and  high  dast 
the  candidates  flocked  in  in  large  nnmbers.  On  such  occasions  the  li 
of  the  examiners  were  very  onerous,  and  the  eipenses  incurred  very 
siderable.  For  the  purpose  of  relieving  the  public  funds  of  this  charj 
any  future  time^  it  was  proposed  that  a  fee  should  be  paid  hj  eachi 
petitor,  to  go  towards  defraying  the  eipenses  of  tbe  examinaUon.  II 
regulation  were  found  to  be  necessary  when  only  isolated  cases  of 
competiUon  occurred,  it  would  become  an  absolute  nne  fHa  non  i 
junior  appointmenta  in  thestate  were  distributed  in  the  same  way, 
imposition  of  such  a  charge  would  have  the  effect  of  relieving  the  doi 
titions  from  a  considerable  number  of  manifestly  incompetent  candid 
who  would  otherwiH  have  swelled  the  list  without  having  the  slig! 
chances  of  success. 

As  time  advanced  it  was  no  longer  thought  necessary  that  the  re] 
of  the  Commissioners  abould  be  occupied  with  arguments  in  lisTor  ol 
competitive  system,  BO  unanimous  was  the  avowal  that  a  raost  bene 
change  had  been  wrought  by  its  influence.  Whether  it  might  not 
been  extended  with  s^ll  better  results,  is  a  point  upon  which  there 
great  amount  of  controversy.  No  general  or  comprehensive  tnal 
been  held  for  the  settlement  of  this  vexed  question,  and  there  appear 
immediate  probability  of  anything  of  the  sort.  Since  1659  onlj 
maleriat  alteration  has  been  made  in  the  mode  of  conducting  the  eiai 
ations.  That,  however,  was  of  so  important  a  character  that  a  won 
tiFO  of  explanation  in  connection  with  it  must  be  deemed  neceasary. 

It  was  noticed  in  the  conduct  of  certain  competitions  thst  eome  el 
candidates  were  so  grossly  deficient  in  koowJed^  in  the  most  ordii 
description  of  subjects,  that  the  examinations,  though  nominally  ooi 
titive,  were  in  reality  nothing  more  than  pass  examinations  to  seven 
the  Buccessfnl  nominees.  For  instance,  three  men  would  be  nomini 
for  a  vacant  appointment,  and  when  they  presented  themselves  to  nndi 
the  requisite  examination  before  tbe  Cora  mission  ere,  it  sometimes  loi 
out  that  two  of  the  three  woe  not  up  to  the  recognised  standard  of  ev< 
pass  examination,  that  is,  an  examination  without  competition— 40 
foot,  tbe  only  qualified  man  walked  over  the  course.     It   became  evid 


1669]  THV  BRXnBH  CIVIL  8XBTI0X.  215 

thit  some  safegumrd  against  the  recarrenee  of  thia  was  urgently  called  for. 
Aooordioglj  the  anthoritiea  made  it  their  business  to  ascertain  what  alter- 
atlon  in  the  sjatem  would  meet  the  requirements  of  the  case.  They 
ultimately  concluded  that  the  establishment  of  a  test  or  preliminary  eza- 
minatxoD,  similar  in  character  to  a  matriculation  at  one  of  the  universi- 
ties, wooJd  answer  the  purpose.  It  was  expected  that,  for  the  future,  every 
Tressory  nominee  should  pass  this  ordeal  in  a  satisfactory  manner, 
before  he  could  be  eligible  for  his  final  *'  go"  or  competition.  During 
tbe  years  which  have  elapsed  since  this  reform  was  effected,  the  Commis- 
sioners have  been  justified  in  reporting  in  a  highly  satisfactory  tone  upon 
the  working  of  it.  It  undoubtedly  furnished  the  means  for  securing  a 
5ona/(/0  competition,  though  of  a  limited  description,  for  every  junior 
appointment  under  the  crown. 

THB   TRIALS. 

The  method  of  conducting  the  trials  was  very  eimple.  The  whole  mass 
of  candidates  ordered  for  examination  on  any  particular  day  were  brought 
together  in  one  common  room ;  this  precaution  being  taken,  however, 
that  no  competitors  for  the  same  appointment  should  be  stationed  near 
each  other.  The  viva  voce  form  was  never  resorted  to,  except  in  testing 
a  candidate's  command  of  a  foreign  language  for  conversational  purposes. 
Papers  of  questions  were  distributed  over  the  various  tables,  with  a  can* 
'iidste's  name  written  on  each  set.  It  was  arranged  that  no  two  men 
sitting  in  close  proximity  to  each  other  should  have  the  same  questions, 
which  was  done  to  prevent  collusion  between  friends.  A  fixed  time  was 
allowed  for  each  paper,  and  when  that  had  expired  the  work  of  the  can- 
didates was  collected  without  delay,  regardless  of  the  amount  of  progress 
that  might  be  made.  Under  no  pretext  could  a  competitor  be  allowed 
to  withdraw  from  the  room  after  he  had  once  had  his  paper  or  questions 
placed  before  him,  until  such  time  as  be  should  have  finished  his  task  in 
connection  with  it.  To  obviate  any  inconvenience  that  might  arise  from 
this  regulation,  it  was  arranged  that  no  detention  siiould  exceed  three 
liouiB  and  a  half  at  a  stretch. 

The  examiners  assigned  a  maximum  number  of  marks  to  each  subjecti 
and  candidates  were  to  be  credited  with  a  certain  proportion  of  them, 
according  to  the  ability  with  which  they  answered  the  questions  proposed. 
When  the  summary  was  completed,  and  the  names  of  the  successful  men 
ascertained,  both  they  and  their  less  fortunate  opponents  were  furnished 
with  a  detailed  account  of  the  manner  in  which  they  had  acquitted  them- 
^Ives  in  each  particular  subject. 

XFFXOT   OF   THB   COlfFKTITiyB   8T6TKM. 

The  order  of  the  day,  as  now  partially  established  in  public  offices,  is. 


316  rni  BHinaB  oiru.  sebtioh.  [M 

Uiat  competition  shoold  be  cnDtiaoed  through  the  official  livet  of  p 
BOrvants — DOt  compelilion  io  tubjeclB  of  general  erudition,  b>  at  the  p 
of eolrance,  bnt  in  the  praciical  work  oflhe  various  depart m en ta  to « 
they  may  be  attached.  Length  of  service  haa  only  this  oonnder 
■honn  for  it,  that  in  a  choice  between  men  whose  qnalifications  are  i 
the  preference  is  given  to  the  one  who  has  this  point  in  his  favor.  . 
long  period  much  hesitation  was  evinced  about  the  adoption  of  thii 
molioD  by  merit,  for  the  reason  that  it  wss  feared  there  would  be 
temptation  anrl  opportunity  for  the  heads  of  departments  to  be  influi 
in  their  choice  by  predileclion  for  personal  friend*.  That  the  system  < 
Confer  sucFi  a  power  on  them  is  true  enough ;  but  there  is  no  very  s 
presumption  that  men  of  intelligence  and  position  would  be  given  tc 
praoLices.  Experience  so  far  has  shown  that  little  fooadation  for  at 
existed,  and  that  il  is  quite  safe  to  leave  such  discretiunnry  power  i 
hands  of  oIHcial  chiefs.  With  this  regulation  in  force  every  man 
strive  to  keep  up  his  reputation  by  the  display  of  zeal  in  his  duties. 
From  the  foregoing  explanation  and  remarlis  it  will  be  wen  the 
competitive  system  in  its  qualified  form  has  been  productive  of  t 
results  in  the  manageraen  t  of  the  civil  business  of  the  British  trowi 
will  be  for  American  legislators  to  consider  and  determine  how  fa 
name,  or  even  a  more  extended  form  of  it,  would  be  likely  to  answer  i 
United  Stales.  As  the  subject  is  now  engaging  their  grave  deliberi 
and  has  awakened  an  interest  in  general  circles,  it  is  necessary  to  mc 
in  what  points  the  English  model  may  be  aaid  to  fail,  that  similar  < 
may  be  avoided  in  the  American  programme.  The  first  we  shall  i 
is  the  practice  of  holding  competitions  for  single  appointments,  c 
■mall  groups,  of  two,  three,  four  or  live,  which  is  found  to  be  atti 
with  unfortunate  effects.  It  frequently  happens  that  the  nnmber  of  n 
obtained  by  an  unsuccessful  candidate  on  one  occasion  f-ir  exceed 
wining  srore  on  another,  wheti  the  fortunate  nominee  is  opposed  b] 
adversaries  of  very  ordinary  sbility.  The  remedy  for  this  would 
group  together  a  considerHble  number  of  appointments — say  from  ti 
to  forly — and  hold  a  mass  examination,  the  highest  on  the  list  hi 
the  priiilege  of  choosing  the  vacant  places  in  order  of  merit.  This 
has  been  recommended  by  the  examining  officers  here,  but  for  some 
has  been  neglected  by  the  Treacnry,  They  would  most  probably  aci 
for  this  by  an  assertion  that  the  delay  consequent  npon  the  ado 
of  this  regulation  would  interfere  considerably  with  the  transaclii 
public  business.  The  reply  to  this  adverse  argument  should  be,  th 
large  and  well-manned  departments  vacancies  were  of  such  frequei 
eurrence  ihat  it  would  be  a  question  of  a  very  ihort  space  of  lime, 
that  a  little  extra  exertion  on  the  [>art  ofthe  staff  of  the  various  eslat 


1869]  THS  BRITIBH   CIVIL  BBBVIOS.  21 7 

ments  would  obviate  any  temporary  difficulty  that  would  arise  from  the 
absence  of  one  or  two  men.  Should  it  happen  in  the  United  States  that 
public  competition,  ^'pure  and  simple"  be  established  (and  such  a  revolu' 
tioDjs  confidently  anticipated  in  the  macagement  of  our  service,  though,  at 
present,  there  is  no  immediate  prospect  of  it)  the  practice  of  groupin^ir 
win  be  imperatively  called  for.  It  would  be  impossible  to  conduct  exam- 
iDatioosof  snch  magnitude  except  at  stated  times  during  the  year — in  this 
taking  example  from  the  open  competitions  for  the  engineers  and  artillery* 
It  migrht  be  arranged  that  they  should  be  held  either  at  one  great  center' 
or  at  certain  important  towns  throughout  the  country.  Local  examina- 
tioDt  have  been  held  on  special  occasions  in  different  parts  of  England* 
and  with  perfect  success.  The  sets  of  papers  were  sent  to  some  recognised 
autbority  in  each  of  the  districts  where  the  examinations  werd  conducted* 
and  the  local  candidates  were  summoned  to  appear  before  this  deputy,  who 
regulated  his  proceedings  by  the  directions  issued  by  the  Civil  Service 
Commissioners  in  London.  When  the  list  of  subjects  had  been  completed 
the  papers  containing  the  manuscript  labors  of  the  competitors  were  return- 
ed to  London,  for  the  examiners  to  adjudicate  upon  the  result. 

It  would  be  impossible  for  an  Englishman  with  no  experience  of  Amer~ 
lean  institutions  to  hazard  an  opinion  as  to  what  poliiical  systems  would 
provide  for  the  wants  of  the  populatiou  of  the  great  republic;  but  in  this 
matter  it  seems  that  local  conditions  could  not  have  much  influence.  The 
Eoglish  plan,  either  in  its  integrity,  or  in  an  altered  form,  might  be  allowed 
a  trial,  and  would  probably  prove  productive  of  happy  results.  That  it 
would  certainly  answer  better  than  your  present  style  of  distributing  public 
employment  no  one  can  deny  ;  and  therefore  it  iaiadvisable  that  some  such 
cbeck  upon  corrupt  patronage  should  be  resorted  to  without  delay.  The 
first  essential  to  success  would  undoubtedly  bean  abolition  of  the  four  years' 
employment  system.  To  secure  an  able  and  industrious  chss  of  men  for 
government  service  it  is  necessary  that  the  public  should  be  brought  to 
regard  it  as  a  profession ;  and  this  could  never  be,  unless  it  should  assume 
somewhat  of  a  permanent  character,  and  promise  reasonable  emoluments. 
Candidates  for  a  ten^poray  position  must  always  be  of  a  needy  and  grasping 
class,  who  accept  place  because  nothing  else  is  open  to  them,  with  the 
determination  of  feathering  their  nests  as  well  as  they  may  be  able  during 
tbeir  brief  tenure  of  office.  The  civil  service  min[ht  assume  the  chaiacter 
of  permanency  without  danger  to  the  public  interests,  while  tenure  of  office 
was  made  dependent  on  good  behavior. 


■^»^Wfca^p^^^^<^»^»^r>r^f>r^r%aiin  -t0~  ^  *_i 


118  B»Om  IV  THE  TUBUO   OWWICMB,  [Jfiv 

Ufoii  n  Tin  PUBLIC  opfigiis. 

The  prevaleDt  official  corruption  is  one  of  the  unfortunate  l^^ie 
he  late  war.  In  limes  of  hostilities  the  large  increase  in  Dado 
iipeDditures  ioTolvea  the  eDtrnatiog  of  wide  discretionaiy  powers 
rablic  officisls  ia  the  handling  of  money  and  the  making  of  contrai 
ind  tbe  tempta^on  usually  proves  too  strong  for  the  virtue  of  govi 
oent  agents.  In  this  wsy  a  system  of  official  peculation  was  origios 
rhich  has  since  the  war  permeated  every  branch  of  the  public  s«n 
tnd  has  now  become  so  strong  a>  to  defy  all  ordinary  means  of  remi 

Humiliating  as  such  a  condition  of  thinga  must  appear  in  tbe  ere 
Jl  who  are  patriotically  jealous  of  the  public  honor  and  tbe  pnril 
be  Government,  yet  it  would  be  an  error  to  suppose  that  these  efila 
leculiar  to  AraericanB  or  to  republican  institutions.  It  would  perhsp 
mpossible  to  cite  a  single  instance  in  which  a  country  baa  passed  [hro 
I  protracted  war  witbout  a  serious  deterioration  of  ofGcial  mors 
rhe  corruptions  in  the  public  departments,  within  the  last  six  years, 
'eu'al,  compared  with  tbe  condition  of  affairs  in  England  at  tbe  be 
ling  of  the  last  century.  It  is  notorious  that  tbe  immense  national  i 
if  that  country  was  largely  augmented  by  official  corruptions :  corrupl 
hared  in  not  merely  by  contractora  and  military  and  naval  officers, 
iveu  by  Commoners,  Peers,  and  Bishops  ;  not  a  few  of  tbe  aristoci 
lames  of  England  having  woo  their  positions  through  public  peculati 
^t  one  time,  the  assembkd  Comraons  declared  "it  is  notorious 
nany  millions  are  unaccounted  for;"  the  Duke  of  Leeds  was  inpex 
or  taking  a  bribe  of  5,S00  guineas ;  tbe  price  of  a  speaker.  Sir  J 
rrevor,  was  £l,005;  the  Secretary  to  tbe  Treasury  was  confined  in 
Tower  of  London  on  suspicion  of  malfeasance,  and  out  of  £46,000. 
.terling  raised  in  fifteen  years,  £25.000,000  only  was  accounted 
KU/er  tbe  treaty  of  Utrecht,  tbe  Commons,  remonstrating  against 
irevailing  corruption,  told  tbe  Queen  that  £35,300,000  of  the  sup 
rere  not  acconoted  for.  During  and  after  the  war  with  the  Amei 
i/olouies,  a  similar  condition  of  Ibinga  prevailed,  though  perhaps 
lagranl ;  and  even  in  the  late  Crimean  war,  committees  of  investigi 
incovered  a  eeries  of  disgraceful  frauds. 

We  cile  these  historical  facts  to  show  that  official  corruptions  am 
lenuliar  to  auv  aze  or  an?  country,  or  anv  form  of  government;  but 
hey  are  apt  to  occur  whenever  the  public  attention  is  absorbed  by  a  g 
itruggle  and  unusually  heavy  financial  responsibilities  have  to  be  inlrn 
o  public  officers.  To  say,  however,  that  our  corruptions  are  no  grt 
ban  those  of  other  countries  similarly  circumstanced  is  to  say  but  1: 
The  prevailing  perversions  of  tbe  public  trust  are  a  stupendous  evil; 
riliat«  the  morals  of  aooiety ;  they  are  a  direct  robbery  upon  tbe  pi 


1869]  BBVOBX  IV  IBH  PUBUO  OVFIOICL  219 

weakb,  sod  a  serious  drawback  upon  the  national  prosperity.  No  prac- 
tical means  should  be  left  unemployed  for  cleansiog  the  public  depart- 
meDts  of  these  wrongs.  It  is  fortunate  that  the  new  Administration  is 
inaugurated  under  specific  promises  to  reform  these  abuses.  We  have  no 
question  that  ic  is  the  earnest  purpose  of  the  President  above 
erery  thing  to  establish  a  higher  order  of  integrity  among  the  public^ 
earvanls.  How  far  he  may  succeed  and  how  far  his  methods  of  accom- 
plishing that  object  have  been,  thus  far,  well  chosen,  are  however  matters 
upon  which  opinion  may  differ.  He  has  begun  by  eschewing  politicians, 
salectiog  his  advisers  from  among  private  citizens  of  known  character,  and 
ignoring  the  advice  of  men  high  in  public  station  and  long  experienced 
is  public  a&irs.  However  well  adapted  this  course  may  be  for  securing 
the  services  of  men  of  business  habits,  stern  integrity  and  supreme  devo* 
tioo  to  the  public  interests,  yet  a  rigid  persistence  in  this  course  would 
seem  to  overlook  obstacles  arising  out  of  the  method  in  which  the  public 
offices  have  formerly  been  filled.  The  influencing  of  government  appoint* 
ments  has  always  been  practically  acknowledged  as  one  of  the  main 
rewards  of  party  support.  Every  Congressman  receives  his  nomination 
apon  an  understanding  that  he  sliall  further  the  applications  of  his 
topporters  for  official  position ;  and  this  sort  of  compensation  constitutes 
one  of  the  miun  motives  to  party  activity.  It  is  doubtless  a  great  misfor- 
tune that  the  politicians  should  be  thus  selfish  in  their  devotion  to  party  i 
and  the  more  so  as  their  positions,  when  acquired,  are  used  less  for  the 
good  of  the  country  than  for  their  own  private  advantage.  But,  never- 
theless, the  fact  is  not  to  be  ignored  that  such  is  the  firmly  established 
method  under  which  the  offices  have  hitherto  been  filled.  If  a  President 
undertake  to  make  his  appointments  independently  of  the  suggestions 
of  politicians,  what  is  likely  to  be  the  result  f  He,  almost  of  necessity, 
makes  Congress  his  enemy.  The  politicians,  disappointed  in  their 
aspirations  to  office,  press  their  representatives  in  Congress  to  use  all 
means  for  coercing  the  President  into  acknowledging  their  claims ;  and 
the  party  leaders  urge  that,  unless  they  can  reward  the  agents  of  their 
organization  with  offices,  they  cannot  count  upon  their  co-operation  in 
the  elections,  and  that  consequently  the  party  stands  doomed  to  defeat. 
Considering  how  easy  it  is  for  Congress  to  embarrass  and  defeat  a  Presi- 
dent upon  matters  of  greater  consequence  in  his  administration  than 
sppointments,  it  is  evident  that  he  must  sooner  or  later  accede  to  these 
demands.  Hence  we  are  not  disposed  to  feel  sanguine  respecting  the 
sdministration  accomplishing  all  it  aims  at  in  the  way  of  cleansing  the 
pnblic  departments ;  and  we  are  confirmed  in  this  view  by  the  evident 
disposition  in  the  Senate  to  continue  in  force  the  Tenure  of  Office  Bill, 
u  a  means  of  holding  the  President  in  check  in  this  very  matter. 


8S0  KivoBM  m  THE  puBLio  omcu.  [JKt 

Mr.  JeDckes'  Civil  Serrioa  bill,  providing  for  appointmenta  npon  o 
p«titive  eiamiDaUoD  and  removals  only  upon  utilise,  bxB  the  virtue  ol 
eicellsnL  nim.  Tbe  sjBtem  baa  been  foUDd  to  vork  well  in  France  aai 
Ea::IaTid  ;    and  it  is  tbererore  concluded  tbat  it  wonid  operate  advii 

rvsly  here.  We  fear,  however,  wbether  with  tbe  present  aupren 
party  power  in  every  department  of  public  affairs,  it  would  not 
both  to  secure  efficient  appoiolments  and  to  insure  removals  when  1 
existed  adequate  cause.  Sucb  a  law  might  easily  be  made  tbe  inslrui 
of  keeping  in  power  corrupt  officials,  for  we  have  seen  iu  tbe  late  nu<iic 
revenue  frauds  bow  difficult  it  is  to  prove  specific  facts  against  an  ol 
whom  all  regard  as  delinquent. 

The  only  really  effective  correction  of  official  abuses  ia  in  tb«  prei 
of  public  opinion.  Every  party  is  directly  interested  id  tbe  maiDtei 
ot  its  character  ;  and  when  its  reputation  for  corruption  becomea  obno: 
to  the  people,  it  must  expect  defeat  at  the  elections.  If  corruption! 
carried  to  an  excess,  official  morality  becomes  a  prominent  icsue  in 
politics  of  the  day,  and  party  leaders  are  compelled  to  acknowledgt 
phase  of  public  opinion  by  tbo  nomination  of  mr-n  of  character  for  a 
la  this  way,  the  abuses  of  officeholders  are  reduced  to  just  the  limil 
the  public  will  tolerate.  We  alteady  sea  a  strong  reaction  settii 
from  this  quarter ;  and  the  real  imporlance  of  the  President's  effort  at  re 
lies  in  tbe  fact  tbat  it  is  a  refleclion  of  this  sentiment  and  that  it 
the  public  desire  a  broad  and  oonspicuous  assertion. 


Tb«  bllt  ti  slrfnj^tben  the  pubUc  credit  bu  become  a  law,  ind  is  u  rollowii : 
Be  tt '  nstlei',  itr.,  That  in  order  to  temnTe  an;  doubt  as  to  ihe  parpoie  i 
f  ovemmeat  t<i  i  iuhar^te  all  just  obllKiliont  to  the  public  erediton,  aail  to  etttli 
flictJDu  qupttinn  and  iDterpretatione  of  ihe  law  b;  virtue  oF  which  sucb  obliit 
have  Lten  con  r  cted.  it  ia  hereby  praTiJed  and  declared  tbat  the  (aith  of  the  I 
Staten  i*  ri'lcnx  Ij  pW^rd  to  the  pifmeDt  in  coio,  or  i(a  equiva'en^  nf  nil  tbe 
gitioDi  of  he  Uaited  (ftatei  not  \-tttiog  interest  known  a*  Uuit  d  Slatr*  onlc 
of  all  the  iiilMe»t  b.'aring  obligatjooi,  cicppt  in  caaee  whfre  tbe  law  authoiiitn 
ieaue  i-1  surh  ciblignCione  bas  ezpreiaiy  proTided  tbat  (be  eHm>!  in>;  be  paiil  in  I 
money,  w  io  oticr  cirreocy  tban  sold  and  eilver ;  but  Q 'DB  nf  ibe  said  id 
bearing  nbln'Sians  not  a'rei  <y  dus  ^lil  be  redt^emod  or  paid  befora  mataiiij, 
at  auch  lime  Uoited  Slutve  notta  (hall  be  convertible  in'o  coin  at  the  o;il  dd  ( 
tioldtr,  or  u.iltaa  at  eucb  time  boodi  or  tbe  United  Statea  bearmi;  a  lower  r 
iutereits  than  the  bonds  Io  be  redeemed  can  b«  rotd  at  par  in  cuin.  And  (he  U 
States  bIbii  biUiudI;  pledgfs  Ita  failh  to  make  proviaioD  at  the  earliett  p.-actical.| 
for  tbe  tedempUoa  of  the  ITnited  States  ante)  io  Coio. 

JAMB:  O.  Dlaiib. 
Speaker  of  Ihe  bouse  of  K-pmeotalii 

SOMDILEB  Cl  LFAZ, 

Vice  Fieaiilent  of  the  bolted  States  and  Preaident  of  the  Seoale. 
This  vai  alined  by  theBH  officer*  on  the  IStbofUardiiaod  yesterday  was  app 
by  the  Hrveideat,  aa  follow!  ; 

Approved  :  U.  8.  Qf 

Uatch  18,  1SS0. 

The  above  b  the  flrst  bill  aigned  by  President  Oraot  in  his  •xeeutive  eipscit; 


1869 1  szw  TOiac  obntbal  railroad.  221 

NEW  TOSi  CENTRAL  BAIIROAD. 

We  hare  been  accastomed  to  receive  a  company  report  of  the  opera- 
tion and  conditioQ  of  this  extensive  work  annually.  Now,  however,  it  is 
necessary  to  seek  tbe  same  information  through  other  sources.  It  seems 
to  be  the  policy  of  the  present  management  to  withhold  information 
as  much  as  possible  from  stockholders  and  dealers,  so  that  those  inside 
hare  excellent  opportunities  for  making  money.  Our  efibrts  to  obtain 
iofornoation  have  been  very  extended  and  persistent,  and  we  give  all  that 
is  ohtainable,  but  less  than  we  should  like  to  know. 

This  great  line,  with  its  many  valuable  connections,  and  the  Niagara 
Branch,  which  is  held  by  the  company  under  perpetual  lease,  has  the  foL 
lowioor  length  of  track  in  use. 

lU  n  Foad 

Abaoyto  Baffdlo,  K.T.  237  73  mUes. 

Uteral  and  t*nincb  L1ne«— 

ALhen*  to  Junction 87.87 

Trojto    chencctndy «1  00 

Syncoffeto  t^och  sier. 104.00 

BiUvii  to  Atlica 11. CO 

Roch^ter  to  Niagara  SnspesBion  Bridge. 74.75 

lioc  p  >i t  Junction  to  Tonawanda.       I'i.''i6 

Jnncuoi,  N.  V  ,  to  Charlott*?,  N.  Y 6>8 

BdITaIo  to  LewUton,  N  Y S8.26    396.00     *^ 

Tota'  len^h  ot  main,  latrral  and  branch  Unei  owned  by  Company 6')S.76  mllee. 

SecoDdtrack,  aidinga^tarnonta  and  twitches 465.40     ** 

Total  eqidTalent  aiajr^e  track  railroad  owned  by  Company 1,049 .  15 

Niagara '^  rldj^e  and  Canandalg  la  Rallroid  (leaaed; 98.48 

bidiogi,  tamontaandawltcheeon  aame... 8.65   103.11     ** 

Total  equivalent  aiogle  track  owned,  leased  and  operated  by  Company..  1,151.26  miles. 
Length  of  lines  and  track  in  use  October  1, 1863-1868,  inclusive : 

1863.       1864.        1866.        1866.        1F67.        1868. 

Unesowned 665  88      655.88      666.83      655.88      503.75      693.76 

lines  leased 1C0.09     100.09       98.46     136. SS«     98.46       98.46 


Tot%l  lines 665.97     666.97     654  84     692.21      692  21      692.21 

H  track  etc, en  o'nMrns 898.01     408.29     420.98     432.78     452.57     455.40 

**         •»  leased"  3A%        8.42        8.43        8.74*       8.65        8  66 


Eq:iiva]ettt  slQfile  track 1,967.40  1,067.68  1,078.74  1,183.73  1,148  48  1.161.28 

The  road  is  narrow  guap^e,  and,  as  our  readers  are  aware,  for  the  ac- 
commodation of  its  cars,  the  Great  Western  of  Canada  has  a  third  rail. 
The  rail  in  use  varies  from  56  to  75  lbs.  to  the  yard.  The  company  are 
using,  experimentally,  a  connderable  length  of  steel  rail. 

Tbe  rolling  stock  on  the  several  lines  October  1,  yearly,  is  given  in  the 
tollowing  table : 

1868.  1864.  1865.  1866.  1867.  186?. 
UoomotlTei 239   241   2;8   276   289   292 

^mmmi^am  ^^b^W  ^ma^mt^  ^^h^^^  ^^mmmm  ^i^^immm 

PU8eogerctn,1ttc*asB 197  188  206  208       205  206 

•*          '•       2d     ••     58  68  78  84         91  9i 

B«gi;a]^,  mail  and  express  cars ■ 68  78  83  88        90  95 

Frei^t  ears,  wooden  box 2,698  2,782  2,987  8,017  8,198  1 

^        ^   iron  box 610  719  717  693       691^6,118 

**        "    pl.tform 803  1,095  1,200  1,166  1,291  J 

OraTd  sad  Other  cars 860  850  SCO  350       850  850 

Gnsolank'nds 4,679    5,280    6,629    6,601     6,916    6^ 

•  Indndinje  Saratmsa  and  Hndaon  fiirtr  (now  Athena  Bnacb)  BB.,  87.87  mUes,  with  sid- 
ngs,  tsraonts,  Ac,  5.89. 


SSS  HXW  TOKX  OBBTKAI,  XULKOAV.  \M 

We  give  in  our  next  atatemeDt  a  nview  of  the  biuinen  aod  mt 
of  the  total  linea  for  five  yean.  These  do  not  appear  to  har«  impi 
very  rapidly.  There  is,  however,  an  observable  iocreaae  in  traffic, 
also  in  earnings.  We  also  find  that  the  operating  expenses  have 
greatly  reduced,  and  hence  in  the  nett  earnings  the  increaM  u  cc 
erable.  This,  however,  is  rather  apparent  than  real,iThenitia  remem 
that  in  former  years  operating  expenses  were  made  to  include 
amounts  which  ought  to  have  been  supplied  by  new  capital,  and  « 
under  the  present  administration,  have  been  distributed  to  the  t 
holders : 

irSt  S4.     IBH-fil.    ISffi-M.     ISte^.     1: 
rpiMlis'rtr^ a,113,MQ   ■.eTS.SSB    *,ni,8Il    *,11S,ni    1, 


ToUltnlnmlleaga.^ t(,Sin;103  5.80I,«B  S,«01,M1  a,«>l,4»  «, 

Puf eDEets  unitd 3.filM,)M  S,16S,M8  S,T«,Ifi«  MlS,aU  *. 

lOOmllei l,«St,4TI  l,SSl.ra3  l,lM.m  l,See,SBl  1 

Fis'Ebt  (tou)  curled. 1,^7,118  1,17S,»»  I,eOi.lVI  LOSIMS  1. 

i-       lOUmllei V<0^4  ifitOMt  LSI0,1EB  S.Sn,m  I, 

DEcr s,9a,tGa  4m.4at  4,na,M9  tsmjan  *. 

xn\ IIS.1V0  B],7so  aa,T»\i      wk 

'  HlKCllSDMnu ii6,Sn  6B1,KS  «)e.Bn       eWW) 

Toil) ii,(m,£i»  ia.9iG.iM  iug«,Tsa  ii.ns.BUU 

PuKDcor a,eea,ist  4,ieE.sx  4,it>,3ii  B.Taa,4M  t, 

Freight.. e,»ss,»w  u,a»e,8ai  fl,^TO,IW  e,s™,MJ  t, 


The  financial  results  of  the  several  years  embraoed  in  the  above 
ment  are  more  fully  shown  in  the  general  income  balance  sheet,  i 
given  in  the  following : 


BtUsCcOclobCTl. 


IBM-flB.       lSS9-«a. 


DiTlflenilt.  FsbroirT... 
DUldsndi.ADeoi'.... 
O.B.IM  oodWd'i... 


7.S«;m" 

'"t:i,m' 

Tw^w" 

RgDtN:il.«C*n.R!t. 

D.  S.  Ui  on  ura-g* 

B»l«nca«  tSept.  SO 

ToU1dlebon«m'i SUI,TB3,1U  tn,S30,gn  (18^18,031  tlB,»^,MI  «!«, 

The  General  Balance  Sheets  for  eaoh  of  the  five  yeirs,  as  of  0( 
1,  1864,  1868,  inulueive,  show  the  capital  movements  and  balaoc 
creditand  debit  at  the  dates  respecUvely,  and  are  comparatively  as  foil 


UocbTnuid  diddcndl S,M1  B,«tl 

BiPCBBeadMldlnOcl) BSOSH  Ul.TU 

Inlfniti'^cracd 84S,M1  Sea.4H 

U  S.lUKmunt au.iliB  m880 

liicom*  baiuM t.8M,ess  s,gti,i(n 


..Hi,nB,tn«u,ns.<nti 


IMO]  irSW  TOBI  OKT&AL  BAILEOAO.  S28 

Per  oootra :  ChargeB  on  the  followiDg  aocoaotSy  viz : 

laM.  18W.  1866.  1887.  1S8B. 

Ooiwtnictlon  tcoount $88,8 . 0,951 188,701,930  $81,138,011  $86,504,405  $36,867,607 

Cuh .  083,966  056.663  661,029  679.5M7  S,373,8B5 

BotA^UteUneKatlroftdBtock 64S,3U)  643,300  642,800  642.300  816.^87 

T^UnkmRR.  stock. <*«,150  68,050  75,760  82,550  80,860 

BudsonR.  bri-Lest'lc 108,405  438,U()0  578,300  553,300  467,600 

Ldn  propeller  stock 140,049  108,401  989.478          

BrieA  Pi  tn.RR,  bonds 81.600  76,U80  ''•8.350  9i3,07l 

IMbt  certlflc's  (ftlklira  ineome) 8,906,608  6,768,190  8,597,430  8,966,056  6,038,6£9 

Fuel  ind  snp^Ues 491,766  1,173,683  1,199,948  759,776  759,776 

nSi  rec»>iTmble 160,047  182,910  186,896  109,467  619,058 

Geaenl  Post  Office 93,9M  93,017  93,047  98,947  81,936 

Best  estate 89,919  89,919  89,500  89,500  89,500 

TotU ..^ $49,975,900  $44,076,407  $44,110,008  $16io93,585  $47  987,014 

Since  the  close  of  the*  fiscal  jeai  1867-'68  a  Scrip  dividend  has  been 
declared  equal  to  80  per  cent  on  the  stock  outstanding  December  19, 1868. 
The  Scrip,  by  its  terms  of  delivery,  is  entitled  to  the  same  dividends  as 
the  stock,  into  which  it  is  to  be  converted  when  the  proper  legislative 
authority  is  obtained  therefor. 

The  funded  debt  included  in  the  above  account  is  in  detailas  follows : 

4 ^Interest «   Date  of  Amount  OatstM'e 

Bste.    Pabable.     matarity  iesued.  Sep.80,'68 

M>tcertir^feorpram.bds 6   M.  IAN.  1    May  1,  ^83  $8,8.^-Vi00  $5,946,6S9 

Bo«ds  for  •  ebts  BBsnxnsd 7   F.  1  A  a.  1    Aa}f.l,*76  I.WOOOOO  1,514,000 

"       "    BANFRRsrk 6    M.l&N.  1    May  1, '83  110,000  76,000 

'*      *'    ralloadstock 6   M.IAN   1    May  1, '83  8n,()00  699,0C>0 

**      "    re.losUte 6    M.lAN.l    Mayl,'83  945,00)  169,000 

"     andmtg8.lorrMesVe 7    181,3:5  58,915 

♦*       »»        «       ••         "        ^^                         6     ..  .                    45  650 

**   conTert.tlllAiig.V69. !!'!.*!!.'"." .*.'!.*    7    PVi*&A!l    Aug.lV'TO  9,096,Ik)v)  210,666 

**  in  place  ol  7  per  cent  bonds  of  1864..    6   J.16AD16.  Decl5,'67  8,000,0J0  2,900,000 


7i 

»k 

Cs 

u 

6i 

u 

fis 

u 

1M 

It 

•« 

»t 

7a 

u 

6i 

u 

Total $18,139,266  $11,458,004 

The  following  table  exhibits  the  amounts  of  the  several  issues  outstand- 
ing at  the  close  of  each  of  the  seven  years  ending  September  30, 1868 : 

1861.  1865.  1866.  1367.         1S68. 

to  meininm  bonds $6,017,008  $6,600,190  $6,45\480  $6,189,965  $5,946,680 

tobondafordebu 994,991  200,0(>l  100,000      

1,898,000  l,89ei,000  1,898,000  1,614,000    1,514,000 

forB.  AN.F  Bt'k 78,(HX)  78,c00  T7,000  78,010        76,00il 

forB.B.  stoek 668,000  684,000  6^6,000  694,00J      699,000 

forrealesUte 165,000  166,000  165.000  165,c00       162,000 

and  mortgages 100,978  199,778  189,815  176,866        68,925 

"             45,550  45,550  45,550 

cony.  tUl  An7.V«e 604,00  9,8'i0,000  9,189,000  453,000      210,000 

fbr7Bof  1864>i4 9,0^6,000  9.095,000  9,095,000  9,000,000    9,900,000 

ToUI,  less  Sinking  fand ^^VfiASk  iijSi.lJs  14^095,804  19,039,820  11,458,004 

Valuable  deductions  from  the  above  statements,  showing  the  cost  o^ 
road,  etc.,  per  mile,  the  earnings,  expenses  and  profits  per  mile  of  each 
road,  and  the  earnings,  expenses  and  profits  per  100  miles  of  travel  and 
transporution,  with  the  rate  of  dividends,  are  given  in  the  annexed  form 

1863  64.     1864-65.    1865-66.    1860-67.  1807-68- 

!>it  of  road  per  mile  ^ $59,136     $60,616     f  61,899     $61 ,684     $01,055 

QroisearoinMpi^inUr.        ;.   .! 93879        26,136       96,263       23,534        24,221 

*4  •      '^      .»    *~  J  •  -J  ^U  ^7.87         70.45  76  39  64.23 

^ofllapermile \T^\\\\\\V.\\\\\\\\\\\     6,570         6,668        6,445        5,509         8,662 

jMiMiger  earnings  per  100  miles $9  6?:8     $«  »?    ^i  S??    *S  2?S    t*  01:5 

Pwirtt  «*"*~**~»»"'^^  2  72:0        8  81:1       9  9a:  I       9  6i:7       3  69:9 

Puwngcrezpentes          -        .';:::::.;;.':;'     1  5«9       t^-l      \^\      \^^       160:3 
yrdght  "^''ir""  "         9  0(hl        a6*:"I       «9J5       ^89:7       164:9 

PwatsperlOOmUss    .  V 44:6  W-^         S?*?  ^'^-^  *3:« 

"    "^    «""•■ IX'l  •»:4  84:6  83:0  04:8 

WTid«BdaFaid,pefciii:;:;;:;::;;;*;:;:;;:;:;::    6x4     »»»     «*»     »«»      ^t 


2S4  BAILKOAD    lABXnoS.  [M 

A  four  per  cent  dividend  was  paid  in  February,  1869.  A  like  dii 
wax  declared  on  the  scrip  iune  as  afbrei^d,  but  the  payment  thersi 
been  enjoined  by  order  of  Ibe  Court. 

Perhap*  in  do  otber  instance  bas  the  market  price  of  stock  increa' 
■ucb  an  extent  as  Ibe  New  York  Central.  The  anticipated  distribot 
scrip  raised  the  quolation  from  108  to  1361  in  the  year  1808.  In  II 
was  as  low  as  80.  The  followiDg  table  gives  the  monthly  ranges  at 
Yotk  for  five  years : 


Bsplsmber 1»   &1M  W  1-   w- 

Ton IH    aia        SO   9^X    e«Kdll4X      KtXaiS3;<    I03 

We  have  the  Erie  in  band,  and  shall  probably  be  able  to  give 
account  of  that  great  enterprise  in  our  next  imue. 


EAILROAB  EARNINGS  FOB  FEBKUIRT  AND  SINCE  JlNUiRT  I. 
We  have  compiled  our  usual  monthly  stalement  of  the  earniaj 
those  railroad  companies,  which  make  public  their  montbly  retur 
traffic;  it  will  be  seen  that  in  most  cases  the  figures  compare  quite 
ably  with  those  for  the  same  period  in  1868,  although  last  year  gn 
an  addilional  woiking  day  in  February.  Below  we  give  the  gross 
iigs  for  the  month  for  the  two  years  with  the  increase  and  decrease : 


•Cb1«eo*Alt"n... 

SOS 

•s-s 

as 

MiTl<tla*  clQciniuiM  

|3ffi&^-;:-:::::-:.::;:;:- 

8M.W 

ffil:»'!''F."'fc-ic;iiii;;;.v:..v::;. 

at.  Lonla.  ALun  A  Tsire  Hiau 

WMteroDni™ 

.      IBT.sn 

«;«» 

"i.» 

The  following  statement  shows  the  Earnings  from  January  1  lo  U 
l,in  1869  and  1868.  From  this  it  appears  how  well  the  present 
has  opened,  for  although  1868  showed  large  gains,  this  year  the  G| 
are  even  better  for  moit  of  the  leading  roads.     The  decrease  in  the  ' 


KMOlnUtS. 


tM 


1869]  THB  PUBLIC    OKKDIT   BILL.  225 

and  HissisBippi  is  from  special  caases,  and  St.  Louis,  Alton  and  Terre 
Haute  and  Western  Union  also  return  a  trifling  decrease.  But  with 
these  exceptions  the  whole  list  gives  a  very  materia]  increase  in  earnings, 
ranging  from  $16,000  to  $155,000.  We  omit  from  the  statement  the 
earnings  of  the  Atlantic  and  Great  Western  and  the  Toledo,  Wabash  and 
Western,  as  they  cannot  yet  be  procured  from  the  respective  offices : 

«SOSS  BABHZNOS  l>BOM  JTAH  1.  TO  X^BCH  1. 

18^.  1863.  IncrPBBe.  Dec. 

•  rUetgo  Jb  Alton 64i.ft89  fiM,n86  88,5^4      

CUetg>A  "^or  hwestern 1,6*.I8,47I  1,642,718  166,769       

tClifc«goBock  I«Uud&Paeiilc 611,609  666,'00  76,i0>       

HHnola  Central. 1,168,401  l,10i,&88  49,616       

MarteitaftCiocinnatt 19018)  1740U  10,161 

Midi giD  Central 7*4,T*6  6480  5  66,750       

MidiUan  Soathern 749,6»S  710.70  8l,8S3       

MUwanke**  A  St.  Paal 78i,>«3  719.371  64,992  .. 

Ohio  A  HlMlBsinpL 896,446  443.821  46,878 

Fltt^borg,  Fort  Wa  ne  &  Chicago l,ill,718  l,lU9,^2l  101.897      

StLooia,    Itou  A  Terra  Haate 860,489  860.^86  647 

Weitem  Union 81,193  87,138  3,980 

It  must  be  remembered  that  the  earnings  given  are  in  all  cases  grasi 
earnings^  as  Expenses  and  net  Earnings  are  reported  bj  one  company 
only — the  Pitlf  burg,  Fort  Wayne  and  Chicago — a  practice  which  might 
well  be  followed  by  every  company  whose  stock  is  sold  at  the  Exchange. 


w^^^^^^^^^%^^^^^^^^^m^^0^^m»^^^^^^^0%^^^^^^^m 


THB  PDBIIC  CREDIT  BILL  AND  THE  ADTANCE  IN  FITE-TWENTIES. 

Now  that  the  long  pending  "Public  Credit  Bill"  has  become  the  law 
of  the  land,  it  is  not  out  of  place  for  us  to  call  attention  to  some  aspects  of 
the  measure  which  have  received  from  the  general  pul^lio  less  attention 
than  would  have  been  claimed  for  them  had  less  excitement  prevailed 
about  its  main  features. 

The  purpose  of  the  bill  as  set  forth  in  its  preamble  is  "  to  remove  any 
doubt  as  to  the  purpose  of  the  government  to  discharge  all  its  obligations 
and  to  settle  conflicting  questions  and  interpretations  of  the  laws  author- 
izinsr  such  obligations.'^  As  these  '^  doubts"  and  "  condictiog  questions" 
have  seriously  injured  the  public  credit  and  have  operated  in  the  markets 
of  the  world  to  depress  the  price  of  our  bonds  below  their  fair  average  as 
compared  with  the  securities  of  other  governments  offering  an  equal  rate  of 
iolerest,  it  was  reasonable  to  anticipate  that  the  passage  of  an  act  solemnly 
adjusting  such  questious,  and  submitting  to  a  final  permanent  adjustment 
such  doubtful  interpretations  would  be  attended  by  a  pronounced  advance 
Id  the  quotations  for  United  States  securities  both  at  home  and  abroad. 
How  gratifying  a  change  has  occurred  in  this  respect  has  been  duly  record- 
ed in  the  Chronicle  and  is  familiar  to  our  readers.    Never  since  the  out* 

*  481  mUii,  agaisBt  980  last  year.  1 606  z&Ues,  asaUat  454  last  year. 

6 


SS8  TBI   PUBLIC    CRint*   BILU  [^ 

hrtA  of  the  var  hu  the  credit  of  this  counlry  abroad  been    raised 
proud  a  ponition  aa  it  occupies  to-dnj. 

It  is  a  onmmoQ  error  to  nippose  that  the  odIj  "  donbt"  «hi< 
deprsMed  the  price  of  our  governinentboDdsisas  to  the  point  wheib 
priocipal  wonld  he  pnid  at  mHturitj  ic  ooId.  This  is  onljr  one  of  i 
mooted  and  misabierous  "questions."  Another  almost  equally  roisch 
is  connected  with  the  option  which  Ihn  government  possesses  of  ri 
ing  the  Five-Twentiea  at  an;  time  after  the  lapse  of  fivo  year 
their  dale.  It  was  argued  by  some  very  eminent  lawyers  that  oui 
eroment  might  at  any  lime  use  Ihii  option  and  redeem  the  be 
currency.  This  opinion  a!  once  reduced  our  FiTe-Twenties  from  tl 
of  twenty-year  securities,  and  pkced  tbem  in  an  inferior  ai 
attractive  category.  It  is  wellknown  that  a  twenty-year  inveslr 
6  per  cent  in  coin  is  worth  more  thnn  either  a  five-year  or  a  t< 
investment  at  the  same  rate.  It  is  is  conformity  with  tliissi 
practical  finance  that  the  British  Consols  and  the  French  Rent 
made  absolutely  irredeemable.  On  the  one  side  payment  of  the  pi 
can  never  be  demanded  by  the  owner  of  the  security, and  on  tb 
side  the  French  or  English  government  can  never  pay  off  any 
its  debt  except  by  the  method  of  purchase  in  the  open  markeL  It 
mi  redeem  ability,  thisposiliTe  permanence  of  duration  that  we  find 
the  chief  of  those  Guancial  forces  which  place  the  Consols  and  the 
far  above  other  securities,  yielding  the  same  amount  of  annual  i 
Now  it  is  this  principle  of  permanence  that  bas  been  heretofore  e 
from  operatiuf;  on  the  market  values  of  our  fire  twenties.  Last  Tb 
however,  the  incertitude  and  vague  distrust  which  has  reenlted  fn 
"five-year  option  of  redemption"  received  its  final  quietus  from 
the  clauses  of  the  Public  Credit  Bill  which  positively  declares  th: 
ol  the  Five-Twenties  shall  be  "  redeemed  or  paid  before  maturity  ui 
anch  time  as  United  States  notes  shall  be  convertible  into  eoin  at  the 
of  the  holder."  In  other  words  Ibe  Treasury  freely  and  forev< 
up  the  option  of  the  five-year  redumption  except  after  the  r«su 
of  speoie  paytneota. 

It  is  evident  also  that  this  pledge  and  promise  so  solemnly  gi^ 
never  be  recalled.  By  some  future  act  of  the  forty-first  Congress  oi 
future  Congress  the  public  credit  act  may  by  eome  chance  be  re 
But  a  pledge  of  the  credit  of  the  government  given  in  such  specifi 
as  thia  can  never  be  repealed.  It  enters  into  the  essence  of  the 
and  is  binding  upon  both  the  parties  to  that  contraet  except  both 
to  cancel  it.  Withont  the  consent  therefore  of  the  holders  of  tiji 
no  act  of  Congress  can  ever  repeal  Ibe  promise  of  coin  payment, 
ever  ^ve  to  the  five-year  option  its  former  ambiguous  and  misci 
poirtr  to  depress  our  Mcuritiei  aid  to  impair  their  value. 


1869]  CHIOAOO  AKD   ALTOST   RAILROAD.  327 

It  is  trae  tbe  permanence  of  the  investment  offered  now  by  the  United 
SUtes  pledges  its  faith  to  make  provision  at  the  earliest  practicable  period 
fer  the  redemption  of  greenbacks  in  coin."  When  this  is  consummated, 
tbe  five-year  option  revives  with  it»  This  option  also  revives  if  *^  bonds 
of  the  United  States,  bearing  a  lower  rate  of  interest,  can  be  sold  at  par 
ID  coin."  At  the  present  rapid  rate  of  advance  in  the  quotations  it 
wonid  be  rash  to  predict  that  that  price  will  not  soon  be  struck.  Still  as 
tbe  bill  stands  it  is  a  very  satisfactory  measure,  and  indeed  it  is  beyond 
qaestion  the  roost  important  financial  bill  which  for  some  years  has  been 
placed  ou  the  statute-book. 

mem  AND  ALTON  RAILROAD. 

The  annual  report  of  the  Directors  of  this  Company  for  the  year  ending 
Dec  31,  1868,  has  just  been  issued,  from  which  we  extract  the  following 
statement  of  the  operations  of  the  company  for  the  year  1868  : 

since  the  date  of  the  latt  Report,  this  company  has  acquired,  by  lease,  possetsioo 
in  perpet  ity  of  the  St.  Louis,  Jacltsoaville  and  Chicago  Railroad,  at  a  minimum 
rectal  cf  $*24<\00  •  per  anaam. 

The  fixe^  charges  up  n  your  property  for  the  year  1869  may  therefore  be  stated 

as  follows : 

PreCerred  Finking  Fund  Bonds,  for  Interest  and  SlnkiQg  Fund  payments $7S,0CO 

First Mort.ase  say ^ ltf8.iUU 

Income  booae,  say _ 77,00U 

Jol  el  and  Chicago  lease,  say 100,140 

St.  Louis,  Jacksouviiie  and  Chicago  lojse,  (mlnimnm  rental,)  a40,00J 

Total $71714  0 

Indndi  g  Sinking  Fand  payments  and  Ooveravnent  Tax. 

Tbe  following  statement  and  figures  will  ezbibt  the  gross  receipts  andexptni- 
torts  for  tbe  year  1868 : 

XAB!IIEI08. 

Fram  Fassenge- Trafflc**^ »*^ $1,805,570  16 

"     FrightTrafflc 3,9)8,691  80 

**     Bxp.»'S'»CuiDpuiiee ir,9»0  65 

"     Tr  ni«  orUtionot  XT.  S.Hail 47,758  00 

''    MleceUaneoui  fionrces 74,89S  81 

$4,508,049  97 

XXPXNSXS. 

The  trftnsp-^rtation  expenses  for  the  year  were  as  follows: 

ForOo  d ict'ng  Transportation $501,191  73 

"  lioiive  I'osrer  7*7,156  01 

**  Malnt^monce  of  Way 818,3.0  .8 

**  ♦•  •*  Cars >9a,!m  01 

"General  Expenses ...  198,547  58 

$3,468,182 


N«t  Barnings $2,015,460  83 

The  financial  condition  of  the  company  for  the  year  may  be  stated  as  fallows: 

IKCOMI. 

Balance  to  creiit  of  tbiiacconnt $924,859  S3 

Ket  Keceipis  dur.ng  tbe  year ; 9,046,460  88 

$9,909,81$  61 

S18BUB9XXXHT8. 

Interest  on  Bonds  of  all  Classes $978,945  00 

Pa  detnkiDc;  Funis 00,000  00 

Kent  to  Joliet  and  rhicogo  R.  R.  Co.,  exdnsive  of  Sinking  Fond 144,019  97 

Rat  to  6t.  Ix>nis,  Jacksonville  and  Chicdgo  Co 140,000  a) 

UlTidendsN.is.  lOand  21 7^9,!»4  90 

OoTernmentTaxonC.  and  A.  Sinking  Fand 9,100  00 

Cost  ot  IfflpruTements  charged  this  accoont 685,766  07 

!:!?•**•* 

'$964.667  81 


18  POBUO  DIBT  or  THR  VHItKD  RATBI.  [ifa\ 

FCBiic  DEBT  OF  THS  unitkd  mm. 

Abctract  atatemeat,  u  appears  from  tbe  books  and  Treuarer  retann  io 
reuarj  Departmeat,  OD  th«  lat  of   Pebraary,  and  1st  of  Uarcb,  1869: 


|wr  cent.  hoDda .  . 


, .  i.ioT,mo,iuo  r«  i,ini,SM.oia  oa 


*rct  (RRIbond •M.IIT.OOO  W    ti^VVn.OOa  00  tl,»0.000  OO 

.  cant.  ccrtlfloiCM BT.IiaUOtiO)      ai,lM,aM  00  

TjP*a.Fii»f.« H.tt\].000  eu       H.OOO.0OOCO  

Total in,tn.auoo    iia,[[TT,ooo oo  i,mo,ioat» 

MATDItMD  DCBT 

1.  daa  Ang.  IS,  "Vl,  J'a  *  J'j 
IS-  IS  Uct  IS.  I>ec  1  .' 


iB.'fij. t'.s^.iBOOO    t:.eis.nooo  | |]»,8 

c  comp.  IbU  nntei  nil'd  Jnnel" 


Jnlj  1ft,  Anj.  IS  UcL  IS.  Dec  1  , 

IS,UHt  OCL  1  «  fS,  1863 1.599.110  00 

liof  Texu  iBdtj — ~.« 

VMDiT  note*  (old) 

daolApr.  I^  tSU,Ju.la. 


...__    __._ _      _,.    .    .  __      s,in.4aaoo     ijs.t 

liof  Texu  iBdtj Hs.oao«>        KAjioaa     

vuDif  note*  (old) 1«S,1I1  M  1IS.U1  H      

K1.SMIO0      T>.t 

m.  D  *  oiJaa.  ^iH —  le.m  nu  ST^US  W 70,1 

■nnonrrlou 1M.SIS  UO  l(a,0!O  00      1' 

nu.of  iDdabt'aM ia.uovao  ii.coooo     ix 

Total ■^^93eM        e,4U,USM   t t«^* 

Iliad statN B<K«* t»t,w..(naoo  f3sa.oo.nsw     t •-■ 

■tlloul  cnmiKj s\MI.>IIH      aSTSUn  30    UnO,U»M 

Mnrti.oldcpoatl tl.fiM.UO  00      K'TUaO  00         >,e3«.l 

Total  <M.;n,'jau    4ii,Ba,i»M>        tvm 

utaeola  latenM. l.un.ss(<.(BDoni,i<T;,!4-.4,a>0  00        OOOOI 

annxMiTlaimM. MS.4.-:.i«i  00     li:  irr^.OOO  00  l,E<U)Oa  OU 

>ia»<td<bi  fi.'-ijniH     ii.ttt.man     488.4 

ariss  BO  IBlaitM «H.IM.Tai  H  Cu^Sjat  U      1,S]V 

vnsaM V*ilKKtJ   iStM'.-fll.aW  14       I,4tJ.( 

iaJlciu.laTtMa iiibi:i.iH> id    i:s.j»L.:fa  «  •«K.74cms    

«(  Ita*  CT>Ia  aadcattKcr ll:«.«o,«i;i-»tst3.sy,».'i»S    i;,«?.7 

The  following  stalemeoi  (liows  tbe  amcMot  of  coin  and  eurmej  oepiratE] 

BdktHio  tbe  fonifutD;  tab>: 

i> |!».rM.n*«  fK.;ii.tnm*«B,Mits    • 

mM7 i:.4t.Ut«      i«.S>4.iaN         WIS 

talmiB*cW«T KM;t,*l>»    tlUKtaVI   >.4«LT»  GS     T.... 

lb«  acciuil  inierst  psTaUv  oo  Ibe  ikbt,  as  »iftiBg  Februry  Land  ila 


MtnnacrUM^ C^jSUSl*     t3,X»,(»<t   t  RJUiM 


IBl^tf]  ABOunoir  or  travsit  dutibs  iir  iriw  jcbsit.  229 

ACT  RSOUUTIffG  REPORTS  OF  VATIOiTAL  BAJTKS. 

The  folloviog  it  a  copy  of  (be  bill  relative  (o  reports  of  oatioDal  banks  as  reported 
bj  a  coafereoce  committee  and  fioally  passed  : 

An  ACT  Rtgyiating  the  Beporti  of  Hational  Bankinff  A$iociaHont, 

Be  it  enacted,  Ac,  That  in  lien  of  all  reports  required  by  section  84  of  the  National 
Corre'cy  act  every  as90C  ation  shall  make  to  the  Cotnptr  ller  of  the  Currency  not  less 
than  &re  reports  daring  each  and  every  year,  according  to  the  form  which  may  b« 
prescribed  by  him,  verified  by  the  o  th  cr  affirmatioD  of  the  president  or  cashier  of 
inch  aseociatirn  and  attested  by  the  sis  ati:ri  s  of  at  least  three  rf  the  directors,  which 
report  shall  exhibit  in  detail  and  under  appropriate  heads  the  resources  and  liabili- 
ties of  tlie  association  at  the  close  of  the  bueine^  on  any  past  dsy  to  be  by  him  speci- 
fied, and  shall  transmit  such  report  to  the  Comptroller  withio  five  days  after  the 
receipt  of  a  request  or  requisition  thercfjr  from  him  ;  and  the  report  of  each  associs- 
tion  ab'»7e  required,  in  the  same  form  in  which  it  is  made  to  the  Comptroller,  shall 
be  published  in  a  newspaper  published  in  the  place  where  »uch  auociation  is  estab- 
lishes), or  if  there  be  no  newspaper  publislie  1  in  the  place,  then  in  the  ona  published 
nearect  thereto  in  the  same  county,  at  the  expense  ot  (he  association,  and  such  proof 
of  pnblicttion  shall  be  furnished  as  may  be  required  by  the  C  »mptroller.  And  the 
Comptroller  thall  have  power  to  call  for  special  reports  from  any  particular  associa- 
tion, wherever  in  his  judgment  the  same  »h)ill  he  necee-sary,  in  order  to  a  full  and 
complete  knowledge  ol  its  condition.  Any  sssociation  faiiiog  to  mike  and  transmit 
any  such  report  shall  be  subject  to  a  penilty  of  $10U  far  each  day  after  fi 'e  days 
that  su  h  bank  shall  delay  to  make  and  transmit  any  report  as  aforesaid,  and  in  case 
any  associaMon  shall  delay  or  refuse  to  pay  the  p  nalty  her  in  imposed,  whfu  the 
lame  shall  be  assee^ed  by  the  Comptroller  of  thi*  C.irrency,  the  am<  uot  of  such 
penalty  maf  be  retained  by  the  T  easurer  of  the  Uuite  i  States  upon  the  order  of  the 
Comptroller  of  the  Currency,  out  of  th-d  i  iterest  as  it  may  bee  >me  due  to  the  ass  ela- 
tion on  the  botidB  deposited  with  him  to  83care  circulation.  Aid  all  sums  of  money 
coUeced  for  penalties  under  tl)is  section  shall  be  paid  into  the  Treasuryof  the  United 
States. 

Sec.  S.  A^d  be  it  farther  enacted,  That,  in  addition  to  said  reportn,  each  national 
banking  aaaociation  shsll  report  to  the  Co'Dptroller  of  the  Currency  the  amount  of  each 
dividend  declared  by  said  aasrciatijn,  and  the  nmount  of  net  earnings  in  excess  of 
•aid  divid  nds ;  which  rep  Tt  t-ball  b^  rnadn  within  ten  d;«y8  after  the  declsration  of 
each  dividend,  and  attested  by  the  oath  of  the  pres  dent  or  cashier  of  said  as»H>i.ition 
ant  a  failure  to  comply  with  the  provi.-ion8  of  ihin  section  shall  subject  such  associa 
tioo  to  the  penalties  provided  m  the  foregoing  section. 


«««^a^«^«^%^k^k^a^^^^*#^^h^k^Mi 


ABOLITIOlf  CF  TRANSIT  DUTIES  LV  NfiW  JERSEY. 

The  follow'ns  is  t  he  scf  pa'sed  unsnimons'y  by  bo'h  brsnctaes  of  the  New  Jersey  Leir^^Iatnre, 
Vsrch  «.  and  stoned  by  Ootemor  Rando'pti,  ab  li-hl  p  the  irdnait  duty  t:xacted  by  iho  blste 
from  RiULoad  cor,. orations  for  all  paaseng  ts  and  f  eight  carried  by  them : 

AN  ACT  BKLATrVI  TO  TBANBIT  DUTIXS. 

1.  Jf€  U  tnae'tdbif  (he  Set. ate  and  Otn'rolAse  mbly  of  iht  State  rf  Ntto  Jertey^  That  f^rom 
and  aAer  the  passage  t  f  his  act,  all  tnnirit  dauss,  %»hether  oa  pa  stngers  or  freiuht,  sball  be 
and  they  ht  reby  a^e  abolirht  d. 

1  Andbe  i*-  furtlur  enacted^  That  al'  compinie«  heretofore  paTinff  duties  to  ih  State  fhtU 
hereafter  pay  e^tch  \  ear,  in  quarterly  payments  as  hantofore  to  h^  Treasure-  of  his  ^  tate,  a 
tax  of  one  oalr  of  one  per  cen  tim  upon  the  cosis  of  thHr  respective  witrku,  tncIaliLg  ai]  iheir 

fnopery  of  evey  de.'CripUon  not  ol  crwive  u  zed,  imtl  the  Le.  Ma  tire  ^hull,  by  {;eiic;a'  law, 
tBpo««  a  nuiform  :iiate  tax,  <  qnally  applicahl  ti  ai  lallroad  and  ca  al  corportintiS  <  f  tbis 
State,  and  said  compaulcs  sna'l  then  p  y  sach  nnififrm  ttz;  unil  linill  such  ueuera  law  be 
passed.  DO  company  heretofore  p  ^y  ng  traiirii.  d  iiie<<  as  afo  e  aid  S'-all,  in  any  venr  hereafter, 
pay  a  les«  sam  as  tax  to  'he  ia  <»  ihitn  that  pat  by  it  for  laiee  and  do  les  f  all  kin  p  for  the 
year  ei  bte  -n  ntindrel  an  slxty-eisihi,  and  stifd  nrnouncs  snail  be  i>»i  t  by  them  in  eqiinl  quar- 
leriy  payments,  and  no  oiber  tax  or  impos*  ahaU  be  li:vl>-d  or  assessed  npou  irai  1  co.up.  nies. 

8b  AjtdbfUenac'ed^  That  h  s  a  t  shall  no  •  ppiv  to  any  corporation  harmL'  a  cun  ract  with 
this8t"ein  reference  tu  taz'tti  n,  an  e^s  w  thin  ih^eem  >ijths  from  the  p  ssage  her  of.  this 
set  and  it'  provi^io  is  be  aae  ited  by  the  b  ardof  dire  toie  of  such  corjp*  ra  iun  in  pi  ce  if  said 
contract,  and  a  certUlcaie  uf  each  accepta  c«,  >  uder  the  'Orpcr  iie  seal  of  sacb  corpora  loi*,  be 
filed  in  the  offlr*.e  of  he  betretaiy  of  Stat-*,  which  certiflcaie,  or  a  a  y  ce  t  fled  ct>pv  t.ureo^ 
ihiU  be  i.leniry  evidence  of  .>acD  accept  nee  ami  auiil  the  filing  as  aforesaid  of  s  such  accept- 
ance, sach  oor.  oraiion  sh-«))  p  y  ai«  now  leqiired  by  law. 

i.  And  be  U  enacted^  That  tuis  act  shall  uke  effect  immediately. 


ILUROia  BAILKOAD  SOX. 

IlUeiTUCI  BUUOiB  COMPUT. 


[* 


larin:   "TbclNulBtMlteiki 
■ud.  In  Act.  It  hw  been  lb*  l.>gMt 


Tlieinrk  1  ■  nm 
qou  l.v  iluQ  m 

Tiuupotutloa  I 

From  ill  other  totuces. .. 


Ii  bniinmlMi'dibt  ijioDiorttral  '■!■:  >i*u  eU hi  bni 
ri-  rqiuDIItj'l  Kn  tuiibMnpnt  ilowii  brtun  In  mK^O'* 
n,  hn    I  th<  D'd  rn  odibwiiJ  tlMt  >>•  «r  (Ix  biiDdial  u 


i^bi. . 


id  dtt,  b.iu^al 

Bepni™  of  Hold V 

Keuti*  of  fio.llDg  Stotk,  BnUalnii, 


""^""l     ToUl 

MDUCT. 

Mo.*t,AO(q».  U,I8W i'ii.'Bft^ 

AddB*Uiic«or  ProIltuidLaai,  Jumtrr  I.ISCS. -   ....^ 

BlinotRttbacred  totProBlandLo'f  Dacambar  )1, 18^ !« 

Bu:.l>oi  (HOT  or  vbb  unoAtccK  bih-boid  cokpaut,  dso.  SI,  1SE& 


Srer^li!ii":.::;;;;;r 

::::    ''■?.1S 

m!{I'{  (p-  Bondt  (dn/i  I'lSo)'.'.'.:":: 
£.«K.S,ii.::::::::::.-:::: 

S:».-i«i»  d.::::;;::.:-;;:: 

W.fttl 

T«i« 

Piofltanllou...^ 

3Ut«[lita  on  bund 

l«,»n.i.i 

H.  MCHBLS,  Tnui 

CEBTIFICITE  OF  CBECI9. 

Tfa«  rnllo«lng  M  lbs  ttzl  of  Ibe  oen  Uw  in  rcfereDca  to  Mrlif^iog  cbtcl 
Dttionitl  tnnlii : 

Be  ii  rnictcl.  Ar..  That  it  shull  Im  nnUvM  Tor  an;  offirar,  clerk  or  aftrnt  of 
Dilioral  twnk  lo  'erlifj  anj  check  drava  itpnn  ni  <  bank  unUaa  tha  ppiBonnr  codi| 
drawiiift  i-iil  chn-k  Khali  hare  □□  depi^ait  in  naiit  b-wk  at  ihe  lime  auch  check  it  r 
fiod  >fi  tmnurit  of  muney  i-qiial  to  tbe  amount  apecified  in  auch  ch-  e^,  an>l  a  cl 
ao  ceniG'd  h;  liul;  au'liorii  'd  officvtg  (halt  be  a  good  and  valiit  otillgatian  a^i 
>ueb  bni  k  ;  ami  any  nffiwr,  clem  or  ng-at  nf  any  national  biok  Tinla'inf  tha  yi 
■iona  i-t  ihji  acl  ahati  aul  j>%l  auch  haok  to  ihe  llabilitiea  a  d  proe**  inga  oe  ttu^ 
or  the  C  -miJiroller,  at  ptuviJad  ior  b  B«tion  fifiy  of  tha  National  Back  Law,  tpfK 
Junes,  leSl. 

ILLIITOIS  BIILBOID  BILL 

Oane-il  Fnller'i  bill  rrn'allDB  Iha  rharcei  of  nllroada  f"r  t*i«  tr-napoHat'im  of  p^i 
sen  and  f  rluhi  hia  do*  bucomu  a  loT  Id  IJllnule.    TBe  Cbleago  Tribunt  hia  tba  lollai 

"Strliped  of  l'«  Ti^rb'at;'.  rrdnc'd  tn  <t>  ai-tnal  ntanlrir,  rtl'eiled  or  llg  li>)rt«litlTc1 


I    lh«l 


aodK 


»  oi  freight,  ii>  ha  tcnf  '0  ib-  fXBt  prltit  Ibe  .ell  oirt  Bhall  r.ot  ch.rf  i"' 
■nlicaeoltnibe-l  rr.  The  n  qui  rem  an  t  <bat  ifae  nl^- 'ball  >a  nrlfcrn 
t  ihan  ih  a.  all  oiliere  barliiB  h.'i  n  liken  a"«jwibe  nf  pilna  la  ibt 
iqnlnmenl  that  lbs  r.tia  ibalt  be  ■reaaonable'  It  no  mora  tijua  li  reqaiic 


186»] 


OHIO  AMD  linSXSaiPPI  1UILB0AD. 


231 


CTETSLUn),  COLUMBUS,  affdllVATI  AlTD  IHDIAJVAPOLIS  RAILWAY  GOMPAJVT. 

Statsnceot  of  earnioga  and  «zp«uee  for  the  year  \$^S,  m  la  ioff  tbe  eam'ng*  and 
ezpeiuet  of  the  C.  C.  ao  0.  R,  R.  and  the  BeHefaotaioe  Railway,  from  January  lit 
to  May  I4ib,  U  68,  the  date  of  cobsolidation  : 

flw  Ptoset»y le. fS^M^ 

♦*     Freleht l,H4J,l«9 

"     Kxi.rvu 115.114 


Vtie 

Rents. 

He  e  Braich 

Interest  and  Dltidende 

MieoellaDe'fns  eonrre* 

•Oi'lsioi  r.f  earotnn  withL. 
If  A  C.  ft  X.  B.  K.  to  >o- 
tttb 


nuns 

8.8  « 
11943 
15,065 


8,8^0 


Bepalrt  of  Treiffht  curs. 1''B.898 

Track.  4S5,«66 

"           Bnlidinge S6,198 

*•           Ve-'ces    8,961 

"            Bridg«- S4  264 

Oil,  Tallow  and  Wa»te 86,881 

Pu  1 M6.479 

f>a(nafl;a«  to  stock 6,790 

Losses  and  damig»-B  tofr*ght 9,811 

r'itnitl(>s  a  d  perM  damages 18,088 

Pep  <1ri*  and  exoecses  of  Tel Si,066 

Ik  lance  paid  on  account  of  Car  ear- 
vice     B,»7 

Work'ng  ezp<>n8ea.  (66  7-10  per  cent - 


Totsl $i,968,6L8 

xxFmaaa* 

P&9!4meerEzp»nsea $344903 

PrciefatRx  enees.... 4iS.3ii 

G^nersI  Bzpeasea 61,87ri 

Bep  Its  of  L'fcnmotl^a S03IIQ7 

**         Faeae  gercan 46,7ii7 

Kflte'raiain , 

Oat  of  whicH  dlTidends  hive  been  p  ild  - 

Aa2a*tltt.  186<8X  oer  cent $866,400 

Fe:raary  lat,  1809, 8X  per  cent 865,844 

Leaving  a  snrp^Qs  of 

Add  farplaa  traoaferr  d  Oom  C.  C.  ft  C.  R.  R. 16^,049 

Add  lariiloa  tian sfei  red  from  Belielontaine  Railway 78,483 


of  eiimiDgB)   $1,976,019 

Htatesnd  Natio-alTazea 16^161 

lot  restontMnds 94,985 

Tot«l  ex.  (75  per  cent  of  earnings. .  $8,338,099 

$739,518 


Sarplna  Janiuiy  let,  1860. 


^BSTaAOT  OV  XJBDOBB  BILAHCXS,  JAXUABT  IST,  1S69. 


781,944 
"$8,369 

984.888 
$143,693 


CoQt'nctlon  acc^BOt.... $11 

Mtfrials  on  hini — 

For  ivpairi  uf  trac« 

Fbrre  airs  «'f  cars  and  eoginea.  ... 
Foel.  nil  aod«  arte 

Ca«h  snl  <  a  h  a^^eta — 

Ctf  h  in  hand*  of  Treaaiirer 

Cub  in  hands  of  Paymaster. 

Due  fom  agents. 

DQ*-f  om  oiber  companies 

Dae  from  P.  O.  D«|.  anment 

wih^ass't*— 
Sdoco  ai  d  Hocking  Valley  R.  R. 

bonds 

B«al  erta'e  not  u«ed  for  loids  and 

depot* 

WoD-Jl  ads 

Pendlrton    toneQiiarry 

BihreceiTa  l**....  

laiar  noil  K  ip 


,98%148 

1651,885 
15S,8»J 
188,081 

896,965 
15,7  4 
9i.0:» 

105,805 
11,014 


9.000 

»>,6P1 

46.01 

4,9lfi 

18,64H 

475 


LUBIL'TIBS. 

Capital  8to<*k,  les^  amonnt  owned 

and  he  d  by  I  he  Co. 

C  C.ftC.  R.  R  mort.bM8  ($95,0.0 

fftl  in/ dne  ea^'h  ye  r) 

Belief  ntalne  ft  I  a  R.    .1st  mort. 

bonds    less  amount  owned  by 

Com  any 

Belkfobtalne  ft  Ind.  R  R.  9d  mort. 

bonds 

Bfli>  fontalne  ft  Ind.  n.  R.  [ocome 

bonds 

Rel  cf  ft   .  RN.  bMs.  ps-t  due 
Indi  mspoMs.  Pitts,  s  Cluv  R.  R. 

Isl  m  rt  bonds 

Indiai  a  oils,  PItrs.  ft  CI  y.  R.R  9d 

mo't.  bonds,  lena  amonut  owned 

by  Company 

I  Ividend  No.  9  payable  February 

in.  I86!» 

Surplus  ear4.ings 


$10,400,900 
400,000 

740^000 

16,000 

87,000 
9,U00 

879,000 

841,000 

865.844 
919,603 


T«ta' $18,034,8461     Total $18064,846 

Clitb«asd,  O.,  Febriary  17, 1860.  GBO.  H.  ..US3  b  LL,  Treasurer. 

A  bill  baa  paaevd  tbe  Hisfoari  Legialature  anthorizir  g  the  Uinnibal  and  St.  J«  aeph 
Btilioad  to  iricreaee  their  stock  to  an  amount  not  ezceetlin,^  the  cash  capit.il  of  tbe 
road,  which  will  enable  the  road  to  pay  off  ita  iodebtedoeaa  to  tbe  State  and  procure 
a  release  of  the  SUte  Ilea  on  the  road. 


OHIO  AlTD  MISSISSIPPI  RAILROAD. 

Tbe  ammal  report  for  the  year  ending  December  81, 1868,  shows  the  following : 

-   ^anln^i.                                                              186!*.                     1887.  Decreaae. 

^•erjccrs  $l.-8l).tt8t  99        $1,439.310  66  $198,398  64 

£«*Kbl V86,8  8    «           1,87*4  8^5  i8i,'09  29 

u{»i«ssaudllalL.... 14(»,«l»  79             157,(80  46  11,440  67 

Total ,...$3,964,010  67        $8,46J,aiJ  9}  $l9  ,978  60 

*8ctt:emeLta  for  December  not  yet  made  with  L.  M.  ft  C.  ft  Z.  R.  R. 


83  ^OHio  Axo  tnnanm  mAHJioAB,  [Jl 

The  or'ioiry  openling  czprrKs  thow  a  dccreMe  a*  conptrad  witk  IB 
.'S.1'1  G7,cb>rgBil  under  Um  MIoiriDg  bead): 

BlBtemncc  ol  War  sad  ;tnc  ara* KBA 

oilicPow  TudCirt Ml 

lUKporulInn  ixtO>*** ■ 'I! 

toeni  Bipan'c* M 

uta,  Mni.lclpal  iDd  OoTennaDt u 

iM«SM  to  Prapirtr  ud  Caitta  kllltd,  Ac B 

TotJ ttvn 

Tbu  ifaowt  «Di  «amipgi  fur  (he  jear  lbs  iDm  of  |6SS,1i6  BS. 

The  ordioarj  axpcoit*  really  exhibit  a  uh  larger  mat  Uian  legitmiatalj  b 
I  il.and  m  compaia  1  with  ISaT,  tbuwi  a  piopi.  ruooale  decreauwiOi  lh«  far 

sth-dlffereoniMedKban.  lie(inxiiieET*DdieeS fV 

ioiildbBa.dMiligpBrchuaDla,5«l  touuf  Ballroad  Iron,  ei»Uiii  the  inm  af. . .  W1 

Total _ t3d 

Which  would  rnertaM  Iba  oet  farriiiigar,  (dcdacliag  the  iron  panhaia  fre 
EpcDMf,)  tlie  aum  ot  t<lir,(l6H  sa. 

Tb«  Fitfaordinary  txpentea  have  bean  red  Deed  ahoat  tS00,'O0,  'frdnctiDi  ftc 
noont  cbar)^,  tlia  itama  of  diacountof  -nle  of  CuDMlidaled  Hnrtzafca  B 'nrl 
T  cban.e  of  LoromcilJTe  Enginea  and  Cira  to  nirro*  gntgr,  tad  tba  diff 
itwei-D  the  amouma  chMrged  tbia  aceount  in  SK67  and  ISSS. 

lo'rluded  io  Ihe  general  r<e  ipta  Inot  ibe  eatnlnga)  ii  Matid  the  net  pmcfedi 
,le  of  I,'  16  L'oDtolidiled  Ui  rigaKe  linndi.  di>poa«l  of  at  an  aieraje  rat-  of 
I  per  cent,  jtalding  the  lom  of  tt>t2.2ds,  wlich  ad  ed  to  tba  oil  oulilao  li'-g  I 
ikea  the  boo  ed  dabtof  Iha  compiD*,  lat  Januarj,  ISAU,  t4,SM,  00,  autbori 
I  increaMd  to  18,  0  .nOO.  le*Ti"g  yet  to  be  a  Id  tl,u3«,0  n. 

Orib*  t;0.000,'OnC^mcQoa  Sbirk  aulhuried  to  beifaue.1,  there  hia  been  eoo< 

"Tmaleca'cartifii^le*  into  the  Cummon  Stock  tlB.OST.I  8  88.  Oi  tba  tVM 
referred  titork,  there  haa  been  cuorcrted  of  the  "Trualeea'  iVriiBeaita  inl  > 
tted  Stock,  tS,Ma,HSO  8S.  The  whole  amouDt  of  Preferred  Cdrt'fle.ln  ia'U 
e  '  Truateaa'  waa  tS,flfi4,  00,  laaeing  available  to  b«  iuaed  of  rrefnctcd  C 
^xfc,  tl4AjUO0  to  complete  the  amount  authoiiiid. 


-JucedbjeradlnnlBlSS 

lua-osl 

op  IDoa  bdI  na  Wna-y,  per  tmraatoir 

rEntucyo' mitBriali  oubaad 

:::::    i4.im« 

^STiA^^:'::-::.:.-:::-::::-:: 

■.■;.  .S:]5?J 

Urn  rdlniirj  Kipemep,  eiiarnaa 

lO.nt Uhngoi  DiMd 

TS'I?"!?^^  «S«°ckMdOVr7l!l'tu.'J 

,.'.'."         MHiaMi  M 

110,0084 

ihBalaaeetoDhand 

Total  

1869] 


■HOIJ8H  BOARD    OV  TRADB.  2S 


Cr. 

Common  C%Di'»]  Rtoc^  Certlflcat'S. $10,OS7,473  83 

"Traste.-***  Certificates,  nueoii> cried 9il,5M  14 

$80,0CO,00O  00 

"Trustees**  Oommon  Gertiflcakei  to  be  proTlded  far  oatetde  of  the 

rjiptU>Sroclu aBM,604  44 

Prpfcrrdd  0«pt«l  Stock  C-srtiSfrites    8,3I5,9S0  89 

''Trudteee**  Preferred  C«rtiilcate«,  unconYerted 8,17^  78 

8,W4.1«4  M 

First  Mortsase  Bonda,  E   D.,  dae  Julr  1, 1872 8,0^0.030  00 

W.  !>.,     "       "     *•    850,1)00  00 

Second    "  ••        W.  D.,  dae  Jaly  1,1874 556.HC0  00 

Incline   **  •*        W.  u.,  dae  Octoberl,  1883 8 '1,6(0  00 

FaadcdOebt         ••  **         •*  *•  "    W,600  00 

riD^-lidiifed        "        doe  January  1, 18<18  •    l,OT«,Oro  00 

Eicbin^  for  Second  Mortzse  Bonds,  W.  D iHOOU  UO 

1,«70.000CO 

Btn)<n78  Cbarnfed  this  Account 00^18  65 

Karniags  Char^ei  in  1»88 89ttl«0l067 

8.672.169  89 

Arrearage  Account,  Pay  BoMsnnpald n8,A69  86       j 

**  BiiU  of  purcbjtses  unpaid,  Ac 107,H)'.)  8D 

Ba^nini;  «coonnt4 1>  be  settled SS^Otii  01 

Notes  oatMLdloif 4G,'>80  00 

open ;iccuu  ts cf  1667 »nd  1S68 S8{«&ld84 

6n.fl96  60 

Total $82,  28,884  98 

The  ezpenrae  on  aooouDtof  the  proposed  ehange  to  narrow  gauge  were  as  follows : 

UccmriTes $''>7,263  68 

i^*M'n.;er  cars l'.8S7  80 

^Tevhtcftw lOi.409  60 

i^oad  bed,  badges,  Ac iii,0ti8  77 

Total 1*01,62480 


EI6USH  BOARD  OF  TRADE  RETURNS  FOR  1868  AND  JAN UART,  186^. 

lb?  following  is  from  the  London  correspondence  of  the  Chmnureiat  anJ  Finan^ 
cial  Chronicle : 

Arter  the  nsual  delay,  (he  Board  of  Trade  retnms  for  last  year  have  been  Issued. 
So  far  as  oar  experts  are  concerned,  the  declared  value  amouDted  to  £179,463,644, 
Bganst  £180.9C1,923  in  1867.  and,  £  88.917.&36  in  1866.  The  computed  real 
TB'aeof  onr  imports  was  £240.616,808,  agsiiost  £284.S!8,887  in  18B7,  and  €238,- 
ns.l92  in  U66.  The  diminotion  in  our  exports  w  s  therefore  very  trifling  while  our 
imrorts  exhibited  a  considerable  increase.  The  valne  of  the  wheat  flnir,  cotton, 
petro'com  and  nool  is  less ;  bat  of  wine,  timber  silk,  eillt  manufactures,  rice,  gaano, 
bemp^flAx,  barley  and  coffee,  more  than  in  the  correspodiog  eleven  moatlis  of  1667. 
Ai  regards  the  export?,  the  principal  changes,  so  far  as  the  declared  value  is  con- 
ctnied,  are  in  oottxi  picob  goods,  which  show  a  diminoiion  of  £3,000,000,  in  linen 
piece  gooda  of  £850000,  in  woolei  cloths  of  £1,66  *,030*;  but  worsted  stuffj  show  an 
increase  of  about  £900,000,  and  worsted  yama  of  £660,000. 

The  folio vin;  particniara  show  the  imports  of  cotton  into  the  United  Kingdom  in 
twelf e  montha  : 

,.i;rom-  1868.  1867.  1889. 

Im.ed  States CWt.  4.643,370  4,715.7^  6,12a,»71 

H»iiimit  and  Bermudas 7,515  lu.623  7j)7 

M^xco ^H'i  Si 


•  •  •  < 


;:'*2»l , bll.»09  629,7  1  8SM14 

Tarker f Irt,92«  67.014  40,933 

E.' pl»«o 1,05.V00  l,ls76U  1,151,419 

B:iti«hlnda 6,49\7T0  4.l4»,tf63  4,403.006 

^"^Q*     ^ 52,190  4,70T 

UUtsr  coantric* a35.219  2Tv8l  848.574 

,.       Totri 19,295,803  11.972,05i  ll.«67,89S 

^'«apatednalTalae(a  months) £70,066,433  £l^3;8,ar41  £17,688,727 


IKOLUH  BOARD   OV  TUDI, 


[jf. 


aiiiRE 

K 

8,110,BBJ 

Tbim'. ;.;;;.;;....,.'.  ib*."  «>u;4u 

Ot'  Kbieh  <h«  following  «u  Iha  declarad  valna : 
lun  ...    £is.t«>,eti     £H»n,n7 

PiKegood* BV.SOS.MO         M.1)e,tAI 

Tbratd ],lji8,41S  l,lli,«:s 

With  regard  to  breAdiltfli  Uis  rollow  ng  m  the  cbiaf  particnlut : 


Hljrla.  CranUtandDal-natla..  .. 
Tnrker.  HotditU  A  Wkllacbta. .. 

Sffiiiiiiiv:::::::::::::::;:::; 


,,.cwt.   8.»yr,i'» 

...     .      4,1U1.4n9 
8,«8,13» 


IBffl. 


Total,  InclndlDg  otbor  catmtilai. . . 

France    '."'..'.'.".'.'.'.'.'.'.'.'.'.'.'.'. 

DnitsdSUtea. 

Totat  .IndadisgoUisriio 


l,7s.i.««     i,*at.'  t* 
iti.eK        1  '.suo 


Cotton  HiiurioniBia: 

Heee  ■  ooda.  Yds 1H.T»*.»71    S!i,48n,S'«    It.' 

Tb'iadjb .  lui.ait     1.404.OI     1. 

Eanh  i.wiremd  PnrcelalD  pke*  l»»,41« 


P?'._  . 


'ka.  Ac,  T4]'re  .... 
tt  or  OernUD  alLne 


Bteel  Uavn 

OUieeS.nlli 
Salt, 
Bilk 

Brood  ule 

Bandker- 

BIhbuni 

tilhirr 


■ndkercbl. 


Ky'i.  Ac  T>rda .. 
A4L,duEaiia...... 

allknnlV.T 


SplrUa.BriUaai,nla. 
«oel.lba..... 


iii-d  ml  hothsr  matenila... 


£ttS«CrT 


ju  .MS      vs.om 


..Wa^tiBT     .. 

ni»t      si*,si« 

8.*  s  %'.» 


tT.BU 


1869]  oomcntciAL  ohroviolx  akd  rsyisv.  235 

Wbounr  lwd  Wovstvd  HjurwAormnfl-* 

ClothofaU  kinds,  yards 6,154,909  9,96^856  M88,ttl 

Carpets  and  dracgeut,  yards <60:f.8i8  8,n9).8'0  3,<128.680 

ShsirU, raits,  ifecnnmher 1A4.88*  ll^&n  lOl.WO 

Worsted  staffs  ardvaietcoilloKS,  yards T5.8(X),i  9  60,431,886  6P,466,S96 

The  B  'arc  of  Trade  retarna  for  Janaary  bave  also  been  pabliabed,  aod  they 
indicate  that  the  improTempnt  io  t^e  general  cooditioD  of  basioess,  which  has  beea  00 
frequently  asserted, and  as  frequently  denied, has  cleanly  taken  place,  for  the  declared 
▼alo:)  of  our  exports  in  the  first  and  slackest  month  of  the  year  was  £1,800,000 
greatertban  in  1668, and  £900,000  more  Uian  in  1867.  The  total  f  r  the  month 
was  £13,621,114,  agatosft  £12,252,688  last  year,  and  £12,786,812  to  1867. 
iDfinenced,  no  doobt,  by  the  improvtfd  condition  of  the  Soath,  which  has  been  canted 
by  the  very  remmierati?e  cotton  crop  now  being  dispose  i  of,  and  also  by  the 
abaodaot  wheat  cr«>p  in  the  Western  Slates,  our  exports  of  goods  to  the  United 
States  in  Janaary  were  considerably  in  ezcers  of  those  in  the  oorreiponding  mnth 
list  year  ;  and,  in  the  main,  an  artive  trade  was  canied  01.  As  compare  1  with 
Janaary  last  year,  the  shipments  of  alkali  »how  an  increase  of  19,80  *  ewt. ;  of  beer 
and  ale,  of  981  barrels;  owls,  8.808  tons;  cotton  piece  goods,  8,928,930  yards; 
earthenware  and  porcelain,  8,827  packages;  haberdashery  and  millinery,  £6.860  > 
manofactnres  of  German  silver,  £9,811;  linen  piece  goods^  1,919,840  yards ;  pig  iron, 
8,022  tons  ;  lar  ditt*,  8  210  tone  ;  railroad  iron,  2,422  tons;  iion  hoops,  sheets,  and 
boiler  plates,  2,0i^4  tons  ;  wrought  iron,  671  tone ;  eteel,  415  tons;  tin  plates,  73,174 
ewt;  salt,  8,893  tons;  silk  piece  goodn,  21,812  yards;  eilk  ribbons,  862  lbs.;  English 
▼ool,  16,999  Ibe.;  IcTeign  do, 942,577  lb>.;  carpets  and  druggets,  182.89 «  yards, 
and  worsted  stnffj,  of  as  mneh  as  2,022,950  yards.  The  increase  in  the  ezp  rts  of 
British  aod  Irish  prodnre  and  manufactures  to  the  United  States  was  almost  general, 
Hnen  thread  aod  cotton  thread  being  the  only  two  articles  in  which  there  is  any 
diminatioa  of  importance. 

*  ■  ■■  I  — ^^— ^ 

^'^—^—  -  —  —  -  -  ---  ■-■-  ■  ^ 

COMMERCIAL  CHRONICLE  AND  REVIEW. 

Xooet«rT  Aff  i1n»~R^tes  of  Loans  "od  DUcoant«— Hond*  fold  at  New  York  Stock  Kxchnnge 
Boird— Prict  of  Oover  meut  Jecariti'-B  at  New  Turk— Coarse  of  C(>iii>ol0  Miid  A.'i  Krlcnn 
Been  Itlesnt  New  York— * 'neniDi;,  Hlfrbc  t^LoweptRm  Cloalng  Prices  at  th"  New  York 
fit'ick  ExchiD^  -  GenersI  M**v  ment  »f  Ooifi  and  Bnllinn  at  New  Yurk  Cuurse  of  Gold 
at  NtiW  York^Conrae  of  Fore  git  £x  han^fe  ai  New  York. 

Ft-braary  has  been  cbaracterieed  by  a  steady  course  of  monetary  affdirs.  The 
condition  of  the  banks  has  not  materially  changed.  Less  money  has  been 
retn  ned  from  the  interior  than  is  a«aal  at  this  season  of  the  year.  Some  moder* 
8te  amoaots  have  been  sent  to  the  Soatb  and  Southwest ;  and  the  West,  instead 
of  retaroing  currency,  ba?  been  an  applicant  for  money.  The  very  large  amoaots 
of  grain  beiD?  carried  in  that  section  hive,  to  a  certain  extent,  locked  up  the 
re&onrceso!  the  local  banks,  preventing  them  fronri  accommodating  tlie  distri^mt  rs 
of  merchaodtse ;  and  the  result  ba^  been  considerab'e  irregularity  in  the  payments 
of  the  Western  mershantp.  Indee<}  the  banks  of  this  city  have  been  dij^counting 
grain  p:iper  for  the  Western  banks  at  a  time  wh^'n  they  uve  usaally  th '  rccipieots 
offends  sent  inpayment  of  goods  bousht.  It  is  somewhat  singular  that,  as 
jet,  there  sboald  be  no  reflux  of  currency  from  the  South.  An  nnusaal  amoaot 
of  money  hns  been  sent  to  that  section,  and  it^  merchants  have  bought  freely  of 
merchandiw  in  the  market,  paying  largely  in  cash,  and  selling  promptly  where 
they  have  cr  dit« ;  yet  evidi*nHy  the  receipts  on  nccoant  of  cotton  have  largely 
exceeded  Ahe  payments  for  goods ;  and  the  question  occors  what  has  become  of 


S30  OOUHXBOIAL    CSHORIOLI  ADD    RXTIZW.  [Jt 

UiecDrplni'T  Vptj  tittle  cmo  bava  papaed  lot'' tbe  Sontbera  binks,  or  it 
bare  round  iu  va;  here  oo  depo  h     From  i be  teoor  of  oer  iarariBaiioi 

tbe  SoDtb,  we  ioclioe  to  tbe  eonclnsioD  tb&t  k  lar^'e  anioDct  of  currc  cj  a 
hoariled  b;  ibe  plaoersi,  to  be  beld  out  of  circuliitlon  Dotil  a  later  period 
tbsir  wunig  maj  compel  ibem  to  parcbase  merchandite.  The  companiiva  a 
of  banba  ie  Ibe  iulerior  ot  tbe  Somb  nude  b  it  rneTitable  tbat  a  cerlaio  i 
ofcDrri^Drj  most  rest,  at  cerlaio  eeeaont  in  the  bacda  of  tbe  plaotiog  popi 
aod  wben,  as  ibis  year,  tbe  total  realiMd  od  Ibe  crop  is  uoiuaall;  Ur^e,  tbe  i 
BO  Iff pt  I-  mporarily  Btugeant.  muBt  be  cor  espondioglj  large.  It  la  p 
conceded  amoof  bankers  that  tbe  baobs  of  the  interior  have  drawn  onl  al 
depoaita  from  ibeir  Kew  York  agents;  and  tbti  fact,  while  it  acconats 
Ter;  ItwcrnlitiODor  the  legal  tenderB  and  deposits,  at  the  BaoK  time  protc 
banhe  'ui  sinil  an;  turt>'eT  coDsiderabte  drala. 

Tt-e  peneral  irude  oftha  cit;  cin  bar  llj  be  ccnsiJered  as  hariDK  prorej 
factory.  The  SoQih  baa  hooght  somewhjt  freely— the  Datoral  cooFeqat 
its  amp'e  crops — and  has  generally  pjid  prompily.  Toe  West,  however,  t 
been  BO  pood  u  castomer  as  miglt  have  been  expected  from  the  lar^e  bi 
realiFEil  apou  its  crops.  Western  merchants,  have  complained  ofeloirneK 
paTDints  or  t  eir  castomcr!,  and  have  not  met  their  obligations  here  ■ 
prompt  'ss  that  coald  be  desired;  and  under  each  circaoutaDcet  tbeyliate 
cauliau'>'y,  and  lees  than  was  expeclel. 

In  Wull  Mr  et  aSairs,  United  SLjicj  bonds  have  etirected  the  chief  ii 
The  inlroduitiou  ia  Congress  of  a  bill  closing  np  all  ooUtardiDg  aalbor 
for  the  ii^Qe  of  tramlB  (ncepllog  to  (he  PacrBc  Riiilroads)  and  of  a  meature 
log  the  pr  Dcioal  ol  tbe  debt  payable  in  gold,  h^ve  prodaced  a  mach  slrooji 
tngi  I  Giivi-rumeat  »eciri<ies  both  at  home  and  abroad.  It  iseatimateJ  tb^ 
$30,00  ,UOii  to  S3.^,<iUU,000  of  United  UUtes  bnnds  were  seat  to  Buropi;, 
February,  be^rde  a  considerable  amonnt  al  other  KCJiities  ;  and  yet,  ia  f 
tbia  iH'ge  Di'W  s  ppiy,  the  price  of  bonds  at  London  has  advanced  f.om 
f 3,  a  [if  n  'i  'I'bis  rise  h  i"  been  arlj  i^ lad  to  Ihe  banin  market  by  tn  n 
in  bomU  or4(S'>  per  cnt,  and  a  itccliue  lo  gold  ol  about  4}  poinip,  TOf 
Ofcoure,  hiiu.  D'der  Ihe-i:  ciicamHunccf.  a  vC'V  active  ipeculalive  •■ ' 
in  these  sicu  iiie*.  and  •herrgisicreilsule^iut  Ihe  Slock  Eichan^e  re.ich  t- 
<HIO.H|!Hin-t  $139liMC)  for  the  corre  pnndini;  month  of  1H68. 

T  e  I'u  luwiug  are  the  rates  ol  Lmd^  aO'l  DIscoddis  for  tLe  month  of 


Ftb  8,          Feb  IX        Feb  1»,  I 

Callloana 7  «—        7  @-        1  &—  « 

Loan Bonds  and  Mortgage — @  7        —is  7        — @  7 

A  1,  eixlorsed  liilU,  2  mua 7@S        t  i*  »        7@B  1 

Good  endorsed  bills,  S  <b  4  mo* BoV        8@>        8@9  i 

iingla  names....       9  I'llO        9  1^10        9  @I0  E 

Lowcrgradea 12  @  6       11  @I6       M  &\6  U 

'j'he   IuIhI   transnclions   for  Ibe  month  ai  the  two  board- bavg  t>een  l,li 
alis'es.  iii-aio8i  1  93t,l)21  abaiia  for  ihe  corre  p  ndiiig  monh  lail  vttr 

Clii»0!<.  ISflS.  I»9.       iDcnuc. 

1,111  ••— 

Mining,   ;;  '.'.'.'.'.'..'.'..'.'.'." 

T*wv"l>l>"   

Total— JlDUrr  


8*.TM 

I,9R,0i4 

Ifiitjm 

1S69] 


OOMMXROIAL    OBROKIOLB  AMD    REVIEW. 


2'>^ 


oi 


The  ictmty  of  bpecalation  io  goverDtnents  has  caa^ed  the  ruilrcad  market  to 
be  Dejected,  and,  as  will  be  seen  from  a  suhjoiued  statement,  th"  sales  ut  tlie 
boards  are  little  morelban  half  tne,  volume  iti  Fe^raarj  of  last  jear  1*he  orgo- 
tatoD<  for  ths  control  of  certain  Western  roadi>,  in  the  inter  pt  of  through  route 
scbeiuis  bare  met  with  coosi  arable  interrnption  from  the  legisltitures  wiii  b  has 
nitur  l.y  t^irowo  eome  doabt  on  the  success  of  the  plans  of  the  Erie  and  New 
York  Central  parties,  and  correspond ingij  affected  the  several  siojIch  therewiih 
ctmiiected.  Some  stocks  h<>ve  been  thrown  apan  the  market  by  outbiJe  holders, 
with  a  depressing  effect  apoo  prices. 


BONOa  BOLD  AT  TBB  N.  T.  BTOCX  XXCBANOV  BOARD. 


CiaMefl.  1668. 

U.S.  bond* .; fl8,.OOJ0O 

U.S.notei 1,{  1,45U 

H'cicilyb'ds 6,4fi4.6li0 

Company  b*d« 2,00.%»00 


1869.  Inc. 

$84,868,400     $10,457,700 


4,874,0r0 
2  7T2,tO 


lUiiJOO 


Dec. 

^  •  •  •  •  •  •  • 

1,361,460 
l,tnK>,G0O 


ToUl-Jajsnary $a,79a,t60     $11,301,400      $8,711,750       $ 

Tlitf  daily  closing  prices  of  the  principal  Government  eecurities  at  the  Netv 
York  Stock  Exchange  Board  in  the  month  of  February,  as  represented  by  the 
Utcst  sa.e  officially  reported,  are  shown  in  the  following  statement: 


riucnB  or  aoYBBNXsHT  ezouiuTXEa  at  hvw  toiul. 


DlTO( 

L 

t 

8 

4 

« 

8 

••     •  •  •  •< 

I'J 

11...     ., 

II 

13 

15...      , 
IV..  .. 

IT 

IS 

W 

» 

a 

« 

« 

£5 

a , 

R 


-6'iP,1881.-^^ 
Coop.    Ueg. 
lU>i    


1U>4 

lUK 

112X 

118 

118>»' 

114 

li3;i 
118X 
1185i 


IIW 
lllK 
lllJif 
lllli 

■  ■  •  • 
•  •  •  •  V 


1F63. 

113 

113 

•  •  •  •  • 

1I8K 
»!«>,• 

■  •  •  •  • 

114 

•  •  •  •  ■ 

1H5^ 
114X 
lU 

114X 
!»«>» 
1143^ 
114!^ 


-6'p,  (5-80  yre.)  Coapon- 
1864.      18*6, 

no)i 

109X    110^ 

.  ...   iioyi 


Fb,10-4 


no 

llOi^ 
110^ 

iio« 

110/4 

iii>i 

ll.'K 

inn 
itiji 
111 


lUJ^ 

iii>tf 

112>i 

lliK 
118K 

118>^ 

iiaji 

112H 
U2K 

•  •  •  •  • 

112^ 


lUK  

ll.>74  . .  •  «  * 

114)4  inji 

115X  lliX 

U6H  


fim 112>tf  llljtf 

ly^f'-.-it 112>^  lll)tf 

UU'Qwt 116K  114)tf 

i^L lltt>tf  lUH 


lUX 
110 

118 

113 

118  V 
118X 


(Holiday  ) 
lliX    

lllX   

112)tf    llSTi 
118>2    115 
116X    llfiK 


new.  lbt\7.  ISSiJ.jrsC'pn. 

1U8X  ios«  ...  lasji 

10>J>^    lOsJi  lOSTi  108^; 

lOSitf    10>«i  lU8Ji  108>tf 

H«>i    lOi*  10ii>i  10b>i 

lOiJ^    10fl)<  10i<X  

H9       10»3i  105»>i  108X 

109K    1U9>^  109>^  lOb^ 

Itft^i    109Jtf  lOttS  lO^iJi 

109^   lo:);^  no  iw}i 

i09>i   io<?i  im^ 

1105^    110?^  1095i 

110>i    llO^i  lOft?*' 

iJiH  lux  inx  iio>^ 

llOji^    llOJi  ill  109)^ 

llUX    110^  llOfi  109X 

iiijji   iio;^  iiux  100 

luo^i   iioj;  110>6  109 

iiox  iiuji  

110)^  111  in  

nu)i  ni>^  io9)tf 

111^  iii.s     ....  nos' 

112       112  H  112^  lUK 

iiij)^  ii8>tf  no,"* 


109  ji^ 

10»X 
1I5X 
116>i 


110)tf 

iio;^ 
llliJi 

116X 


y. 


10- 

l(>8?^ 

lli'i 


10S*i 
108  >i 
113.^ 
113M 


lOSJi  1(»83^ 

lOvSJi  lOi^i^i 

lliiM'  110>4' 

112X  110!4 


OOXrWMft  OP  COH80LB  AKD  AXBRIOAN  8B0URITXK8  AT  LONDON. 


Date. 


Cons 

for 

moo. 


Mud-iy ! 

Tj -eday % 

^&^ne/ 8 


Ain.  eecaritiea. 


U.S.iUI.C. 
5-308  Bh'a. 


Fri-lsy... 

-ata-ri.y 

M"-day 8 

7^  "^'^y 9 

^^  '.^Ine^dty 10 

'"'ir«lay H    „ 

i".*i  ay lt\  93 

Silnrday 13   " 

Muaday 1^ 

7j**'*»7 16 

WedaeAdJiy 17 

Thanday 18 

Friday 19 


Erie 
Bhs. 


Date. 


Saturday 2:> 

Monday 2i 

Tuesday 23 

Wednesday 2) 

Th.r<iday 25 

Friday 2rt 

raturday 


LoweAt. . 
Highest. 
Range.., 
Last.... 


Low)  g'^ 
Lnsc 


Cone 

for 

mon. 

93 

93>g 

93 

9) 

mn 

U3>i 

9f 
933^ 

it 
93>i 


Am.  eecurities. 


U.S. 
5-2U6 


92^ 
93  Jt 


?i 


93>i 


78>i 
7>M 
73?i 

81 ''i 
83 

75,'i 
81 

83 


Ill.C.IBrie 


74^ 
8i 
8?i 
83 


97K 

98 «( 
97)^ 

96^ 
9B3U' 

92j; 
97  ]< 

4;4 

9t5»i 

91m 

97J< 

6 


2>^' 

24  X 
24  >^ 

21X 
21V 
«4 
25>tf 

24 

23\' 

IX 
25>^ 


24 

2<iX 

2)' 

9riXl  25>i 


S88  OOHUXBCIAL  OnRONIOLK  AKD  KKTIIW.  [i 

Thp  roDoviDir  tabic  will  *how  the  opeoing,  x'^hest,  lowest  and  clMini; 
ol  all  thp  railway  and  miscellaDeoDg  secaritiea  quoted  at  the  New  Yorli 
ExcbuDgc  darint;  the  loODthB  of  Jaouer;  and  t-cbraary,  1869  : 


Op«a.  biglL  L  w.  Clo*.   Open.  iilKti.  Low, 
Alton  ATerrellint... 
BoatOD,  Hntirrd  A 


Cbic^fuAA 


i;rei ei      msf  et      «■>»    mx.«sj(  hm 

Kri n      a  n      si«  .-■",„  -  ™- 

W  ;M  1«  140  IM       )"1  IM 

]«S  ISO  14S  IM  lUX    ISO  1U 

Chlcua  Bar]  Abnlbcv 19U  3U>  1»  188  1-T       IK)  '.tl 

do       *0t  Siawm.  *5         «  «        «  

da       A  Nonbont'ii £1         MM  81         otH     MX      aiK  81 

do                   doi.r«f MK      M  «»W      »'         "«      "X  * 

do       *R'0k!«Und llSfi  ISJK  inX  !»«  1S.J(    IM  "S^K 

Cln.tlain  *D*7tjn Tl        7J  TT        71 

ClfT.    *lMI.hurg ««  »ex  WX     ««      MV      M  »>! 

do    »To;edo... VtX  '07  ll»K  IWX  llM>t    lOBK  IWW 

do    '  i>l    I  lu  ftlnd..     .  M         ■»  M         Tt         T4         ■;«  NJA 

Del  .  l«t  *  We.(Brn UW  1!M«  JI8  11»W  m«    llfiX  lis 

DubiianedtStonxcltr M         «I  »»         117  KB       107  1  « 

iount  «3         '4  Oljif     M  

juanitaVist  JnMph.! «o  ntf  w  110  no     i«  "w 

do                do  unif. OIX  I'O  "S  108  10»«    US  18 

iCLZtnl       1«3  14<«  10  IW  IM       il'  il** 

LonSl5.Ld..      «         M         iJ         *S  

L«)iu»h..rB      M  108         »  Itl  lOltf    IIBX  lOm 

Uu   Adndn  .l*t "J*      *8  •*'' 

mctlnn  Ontnil "0  1«  l"  '•>  ^l?**    >»  1''" 

Z                do>r«f ai         WJ*  KX      W        f;X      "«  " 

UorrliAEBMX            «         B7X  Six       8T        '•         8T  B6 

"r      WiL-il ll»«  liax  i:»X  118  118       "•  111 

do        *3    HaV.n    ISa  l-fl  ISS  IM  IM       IM  143 

Ol]  Cm  li  *  »llmrh«DeT.  —    71         TI  TI        TI         7S         TS  76 

»r*"'"r"'.s ::::.:::  S"  S  T  S    S    S"  S, 

Psmllna                         .^i »«  8«  8M  844  MO       BW  8*1 

ES.•/■;»'.■.^?'r*:;::;::::::;::■■:'S''  "Sii  'S"  "Sx  'Sx  "S*  '£1! 

stoniii*toii'^ ""_"'"_     !![I        " 

IT7X     TW 


To)«au.WBb.AW«t«rD »X      <n 

_    ....    [t     ft     l» 


AmertcioCoal... 

■.  iSox  i«     lisw  iS"  mx  iw" 


oniiii ...' BO       Bt      ft>        M       ea       8^ 

gi-SK-iiio^r.^ »„  ,g    '     ,j.x  ,»5  "X  , 


PcnnDThanii  I'oit 

fiJSi";.::'" .:::::: ua  •»«  ";«  ■»;  >"»  'S 

SSfr.S¥.,iSW.;:::::::::::::;:^   f  <  3^  ;Sx  ^   "S 

l)«Dli.'i.J(HiokenA* 100       H'l  !<«  101         

SewV  'kOuulo 6  6  0  8         


SS™       ...T.::":::.::::;::::::  as  «    «    w  sx  sx  « 

UniMdSUte* 48         BB        *S         UU      ■-        ■■■■      :;■• 

,.«...■•»», »x  J.J  gx  jjj  »^  »x  »^ 


W*Ui>?V||o«Co... 


18(ie]  OOUUBROUL    OHRONIOU   AND    UmiT.  239 

Tbe  hlbwiDg  formak  wilt  sbnw  the  nioT«iTiPDt  of  coia  and  bnllioD  dariog  the 
aoath  or  Febraary,  18G8  sod  18d9,  re^p^Ctivel;  : 

I'WS.  isen.  lucreua.  CenMM 

Rnripli  from  Calir-'niia. «,l«l.n73  MLI.llO      3,UlD,«ej 

ImporuofcamsodDiilJloa 415.871  1,8il,t  B  l,43l.S'>0      

CoIb  Intcntit  p«td l,M},im  l,Vts,iH         t;n»      

ToUlr«nortea»nppW.. I'l.iiN.dOT    |l,89il.8iS    | »WL.«-0 

Siporia  or  colD  ud '^iiUilan M.«i3,H  B     t4.1til.M0      tS,SX 

CuUDUdnUM 0,ISS.1U      U119.7W    MU.GOl 

TaUl  irttMr«*n »W.»Sa,9M   t18.«;),TI>l   t'.JW.IM  t 

ta—talwllMnwa]* t7.GW.UU   •10.4t^H'J7   t«.»07.1l8    f 

!ip«cle In buiks  da.ntMd l,ail.*TO       T.iOi.BOl     fl.iiaiJI  

I>«iTtdtroiaiiiir«ported«HiiCM ...    |a,aJT,«3d     t%381,Si8      C •S,'73,7ai 

TbecJafee  or  tlie  gild  premium  ba>  lent  diUrmiDed  mikinl;  b^  Ihe  exLraof 
iljiisry  loreinn  movement  in  bonds.  At  (lie  opening  or  the  mr.i.ih,  roIiI  whb  held 
Ermlj  Dpon  the  ■appo^iliOD  thiit  large  umouDts  wi>u>il  be  rrqulrni  during  Fi,'b< 
rusr;  and  March  lor  export,  loatead  (i(  shipping  specie,  huvever,  sn  ecurmoui 
tmouDl  of  ■sc'iaQUC  carne  apon  the  mirkd,  made  ai;uln9' eipurta  of  bundi. 
UoJer  tbis'iiBHppolatm^utori.'ulcuIiitions,  tbe  price,  ufiernpciiih^  ut  I'-iC^.  cIikwI 
weak  a'  13l(.  precieel;  lit  point<  tower  Iban  at  thi  close  of  Peurua'y,  lUGd. 
Tb:  decline  hss  been  aided  by  a  growing  canfiil- nee  Ihat  Ke  are  on  tbe  eve  a  « 
mure  coa^ervalive  admiDistratioa  of  paMa  iff.irs,  ond  that  even  still  (uriber 
■»<oui.ts  <  r  oar  Betnri'ii-s  will  be  lequ  red  by  li'reigi)  inveHiorii.  The  reciipis 
ufiwaiure  fr'nti  Ouliloroia  coutinue  lu  show  a  heivy  Ju  I  ngcff,  lieing  C.llmi.UUO 
ha  tnau  iu  Fibruury,  ldi>6.  The  exports  of  Bp'cie  uompare  closvl;  wi  h 
t.ibe  or  last  jeir. 


Dim.  Date.                         S,       g       S'     ! 

I    o  I    -I  I    b:  I  2 

HoDday. „  Mondnr  «|  |  Bnll|  liij.  j^ 

Tgotdi)'. Td  (day " 

Wcduidar Wcdourdar % 

TboriJaj hi'»dij i. 

fnOtJ Fnd»r  "' 

HMirdajr ..» 3*iurdir -••^ 

TiKi.d»yV.";!;;i'.;;'  pab...  i«ro 

Wtdaeidaj "        Itwd 

Tluridar.. "       IW't 

'riday "         ItWfl 

Stlonlay "        IHIU 


Vednesdar.  - 
WMdar  .... 


n  the  month  ol  Pi'brnary.  1863  : 

9.       AmBlenUm.  Bremea.    Uambnrg.       Berlin 

r.           florin.  rii  duler.   '■  '  Ih»ler. 

■-:    «    &iiit (  ttfiaTl 

',   *l   &i:X  ■  tmrm* 

i  41  a4ix  i  Tihon 

41    ®4I<«  i  Tl»01) 

41    ®4I}<  i  71h'B7< 

',     *l    &f\)t  I  71^<ait 

[   40j,Sll  (  IllitfllX 

[  4a't®4v  (  immix 

:    4D;i@41  f  nx&T'A 

i  4U<ii%4i  1  ti\&nH 

i  4o;,®4l  (  7ix®Ti;< 

1  4t>;i«ti  (  7i3Kftsn» 

[    4U»®U  i  Tl;^^^^ 


210  JOURXAL  OF  BASEISQ,  OVBMMSCT,  'ABO  nVAROK.  [i 

IT iraxatWK  Ml  aeiiH  mt  ssxom    ti 

.t loei^aioaTi  E»)  Sghx  isk  kkSm    n 

1> -..    lOV   dl'B««    &ITNS''»<9W    '  ISJi    »xS«      i> 

V 1(W   &1(HI5<    tinMSMBX    '  KK    KJi^ai      T. 

ii"::::i:i.!i:":::  ir«  aiwa  BiThOMou  >  rsK  B^»&it   ti 

H laiM&mii  tm'Am»x  ■  tan  tsa&x     n 

m iw  ®itn»  M'»^i«u  '  m%  u%®m     ti 

M WSX&m'A    Slla&iitH    '  fbH    Sj»a»      TI 

nb^  isiis...* lo-xaiWK  EM>  aiiKK  40;<atiM  laxaTiw  nxoMK  t 

rab.itMa iii8;i9iiOK  mu)(«^isk  tiaSiiH  Tsjiaiax  ■■>  «»atx  n 

JOURNAL  OF  BANKING,  CURRENCY.  AND  FINA 

Balnii)  of  ibi  Ke«  York,  PhUadclphli  aod  BixiDa  Binki. 

Below  we  give  tbe  retarns  of  tbe  Bnnka  oF  the  tbree  ciliea  eince  Jan.  ] 

»■»  TOBK  eiTT  BUIK  MTDBm. 

Dits.               Icnni.          )-pccle.  Cln  nl  i  oo.  irpoflu  L.  Tnid*!. 

Junurr  l....Sn<).iMI.OJT  f^O.^Rf.in  (M.s;fi,(09  tlt0.4W,44S  |iS,ess,4n 

Jmrnurr  B....  trsmx-MI       r.SOI.'iIO  X1,SI4,:U  Itrr.Mr.Mg  Gl.l4i.IM 

Januirx  IS...  St«.8^».Bai       ia.i:&tia  M.r.9.1&a  l)e.4Bt,M3  Mtr.jasi 

Jiniilrr  RS...   MH.I'M.ttB       JBtM.IDT  Si.SiiS.U.fl  im.tOMU  B>.D«,;19 

JiDiwT  to...  iflj.iii.'de     u.'iM.tns     si.))i:.iM     ieast«.4ei     MMiud 

rebiuurr  n.  .  »iii.64i,T3)  n,«3Ii,J01  t4,S4M«t  l:ie.60\8as  U.4j4.i3^ 

Febrnaij  13..  «4.SS0,«>T  a->,8a4.841  Si.ttS.tSl  iVl.VTl.tao  BI.^M.ESI 

Fcbn»m>..  9lit.4S-,(M<  «3,V1,:|I1  34,«4T..-I91 .  im,e:tMt  BO.WI.iaT 

KtblQirr  H..  Ml,VlI,tn  n,t<Sl,G03  84.341981  ISO.llS.ITS  M,S33.0M       _ 

PBlLUtlLFHIX  BLKK  HITUUB. 

Date.  'Lmhi.  Specie.    Legal  Tend  era.       DepoalU. 

JaDuair* tsi.7i«.«sg      tBii.4Hs      ti8i;D,«n      tsa.iii.ots 

JannarTtl... c:  «4S.9aT  M4,ngi  LUmmt  Kk^eS-BIl 

Jannary  IS DS.l».7»a  4':8.4ea  lB,*n,4tt!t  8u.i>n,l3S 

JanB-IT» M.B-n.OlS  41I8ST  ]4,(ttl,>T0  i9.BM,4a< 

Ptfenxrvl Ea.(uitBia  >  l.TSI  14.v-fl.GiO  t9.nn.M3 

Febmaiji). B«.0S9.'1I8  Su.O'l  l!l,TSS.aBI  40,0tO*» 

Febrarvia B3.Ufli.SBt  lOl.iiSl      '    ]».B74,04.1  U.TI'.GTa 

FcbmuxB Bl,4:6,l4a  SjI.WI  13,in»,B(n  ST,tMD,IIM  » 

BDITOH  BAHK  KlrmiNB. 

(Capilal  Jan.  1,  18M.  t4l,t*00,«».] 

Data.                                Loant.  Hpecle.  Leira  Tcndeia.  Depoelti.  Orel 

J>nii>rT4 (g8.4UI.h44  t'.:<0.14l<l  til.«.^H.Mt  tSI.BOS.TST  «» 

JsmiaiT  11 li.O.TtT.O  T  S,</;g.8H  ll.Sn4.':0a  118  (Mi.H»t  » 

Januair  IB Iin.KG.iOD  J.e'.T.ABS  li.fl'i.StT  IB.TiT.ISS  K, 

JiBOry» 10i,eJB.H41  J.tBl.TiO  18,Wfl.B74  MG5:,MT  *S, 

^obrn-i'Tl im.BMMS'J  X.ltll.«M  U,IIM9»  40.«f8.4ta  A 

Feh.narvP llH.8t*,4«  J,OM.W«  H.41t,Ti«  »ii.B'a,8  7  ». 

FebiuaiylS ]03.!1GO~4  I.IMA.Gtt  ll.B4».rM  tl.TIB.T  >  » 

ttbtaujSS l(,t,iSj,(>Sl  1,G4B.41B  ll.-.Ut.TW  S«,St>,SI4  li. 

SPECIAL     NOTICE. 

WE6TFIEID  WHIP  HINCFACTORT. 
^hfn  Jasper  R  TUnd  »tabli  bed  hu  xb  p  ructor;  at  WcslSfld  Id  11-33 
macQ'vctare  wi>8  a  stow  bmiofu;  'b«M  geotle  Blimalanta  wtre  m»ie  a 
(xc  ntirel;  bj  liand — mBChiiter;  being  nsed  odI;  for  bniding  Ihe  tbread. 
Ihut  factory  baf  (rrown  lo  mammoth  proportioos,  and  aoder  tbe  mauageinf 
it*  pre-enl  propTietora,  R:Dd,  Livis  &  Band,  whip  maDuFac'.nre  bas  b-co 
fine  nit  1'be.v  bave  ia  operation  IweQlj^five  braidera,  ids  b;  water  power, 
of  which  tarns  cff  twcutf -five  times  as  macb  work  as  tbe  woo  leo  macbiopf 
iierly  io  use,  five  mtrotta  being  occnpied  io  braidiog  one  w  ip.  Tbey 
vhipa  of  all  imaginabte  liiad^  and  styles,  from  ba^gy  whips  wjrth  e^gbt; 
rents  per  drzrn,  lo  elegant  ivory-bandied,  gold  moaoteJ  articles  worth  ail 
dred  dallara  per  diz:a.  If  alt  Ihs  whips  made  by  the:n  ia  a  year,  were  p 
together,  they  onold  reacb  from  Bo.-toti  to  A'baoy  and  back.  Theii  w>Kb< 
ii  3S  Murray  street.  New  York. 


ny 


r  n  K. 


ERCHANTS'    MAGAZINE 


AND 


COMMERCIAL     REVIEW 


APRIL,      186  9. 

TIE  60ID  PRBMIVH. 

The  recent  decline  in  the  gold  premium  deserves  atteniioni  as  it  appears 
to  be  the  result  of  causes  of  more  than  ordinary  importance.  The  follow- 
ing statement  of  the  range  of  the  price,  each  March  since  the  suspension  of 
specie  payments,  will  show  that  the  premium  is  now  exceptionally  low  for 
this  period  of  the  year : 

FEIOX  OF  GOLD  AT  HBW  70AS  IN  XAEOH. 

Hlghait         Lowett. 

18H. i&  180K 

1M8. , 1411^  im% 

vm 1409^  18SX 

18B8. mx  W4X 

ttB. 901  148>< 

1»4. lfl9X  IM 

«»1 171X  18S 

Only  in  1866,  when  the  contraction  bill  was  under  consideration  in 

Congress,  has  the  premium  been  so  low  in  March  as  in  the  present  month. 

Kor  has  the  present  decline  to  130|  to  132  been  the  result  of  speculation  • 

on  the  contrary,  it  has  come  about  in  opposition  to  an  unusually  strong 

tpeealative  effort  to  carry  up  the  price.    It  is  necessary  to  understand 

clearly  the  cause  of  this  decline,  in  order  to  judge  how  far  it  is  likely  to 

pmre  permanent. 

1 


TBK   GOLD  PBKUnnl. 

le  from  our  prmeot  cnrrency  derangements,  the  coniidenitioi 
ere  affecting  the  value  of  gold  la  the  staodiag  of  the  Gore 
and  it  ia  rather  in  influencus  of  this  character  that  ire  are 
reasons  of  the  present  change  of  the  price  than  in  bdj  ipe 
jr  market  causes.  Cougresa  has  recently  talcen  a  ptoi 
1  upon  qneitioDi  9f  fioani^  vhich  has  a  very  direct  tend 
t  public  confidence  in  the  good  faith  of  the  Goremment 
IS  agitation  of  Ecfaemes  savoring  strongly  of  partial  repi 
whioli  there  nas  more  or  less  apprehension  among  tb« 
IS,  ire  find  onr  national  Legislature  undertalting  to  supply 
ea  to  these  fear«.  As  our  readers  are  aware,  a  bill  bu 
lich  provides  thai  all  obligations  of  tha  United  State*,  eice| 
ise  expressly  stipulated,  are  pajable  in  coin  or  its  equiralei 
ide  against  ihe  fear  of  an  attempt  bung  made  to  pay  c 
bonds  before  maturity,  in  a  depreciated  currecc;,  it  is  decis 
ds  shall  be  paid  before  maturity  unless  the  government 
le  have  resumed  specie  payments.  This  affords  tfaeutn:ost& 
ss  could  give  that  the  holders  of  oar  securities  shsll  rece: 
ID  full  and  according  to  their  own  interpretation.  But,  iff 
the  ultimate  good  faith  of  the  Government  was  never  t 
d,  this  aciioQ  has  bad  a  perceptible  effect,  bow  mm:: 
ant  results  might  we  not  aotidpateiD  Europe,  where  tbe  mi 
ilia  point  have  been  so  decided  that  our  bonds  have  genera 
:  an  equivalent  to  their  (bcb  value  in  currency,  so  that,  is  t 
X  being  paid  in  that  form,  the  holders  would  lose  notbin; 
•1 T  Now,  therefore,  that  Congress  has  interpreted  th« 
of  the  contract  between  the  government  and  the  bondbold 
UQch  more  favorable  than  the  foreign  holders  had  genersll 
there  has  been  a  rapid  appreciation  in  the  value  of  our  b 
lilve-twenties  have  advanced  8  per  cent  since  the  b^ic 
ry,  and  from  that  date  to  the  preaent  probably  not  h 
DjOOO  of  bonds  have  been  ezportttd.  English  ioveelo 
>  have  scouted  over  national  credit,  have  now  become  trei 
wcoritiea;  and  in  France  also  the  demand  has  verylargelyii: 
ipredation  (^  tbe  public  credit  abroad  has  in  various  wtji 
-eciate  the  price  of  gold.  The  honesty  of  the  policy  eiidi 
irge  majoritiea  in  Congress,  haa  had  a  very  direct  iodni 
bening  the  value  of  every  form  of  Oovemment  obligatii 
!y  encourages  confidence  in  the  purpose  of  Congress  to  pro 
'liest  practical  resumption  of  payment  of  its  notes,  and  lo 
d  schemes  for  further  infiation  which  have  heretofore  foun 
Agwn,  the  large  amount  of  bonds  sent  out  has  enabled  ui  I 


1869]  TBB  GOLD  PRiiaux.  248 

at  home  bo  much  gold  which  would  otherwise  have  been  remitted  in  set- 
dement  of  trade  balances;  aad  which,  agaioi  by  increasing  our  home 
lapplj  of  coin  is  placing  us  in  so  much  better  condition  for  contemplating 
resomptioD.  These  influences  enhancing  the  publio  credit  are  not  only 
leading  foreigner  to  invest  largely  in  our  Government  securities,  are 
tending  to  strengthen  confidence  in  our  corporate  securities ;  and  hence 
we  have  witnessed,  siraultaneoMsiy  with  the  export  ot  government  bonds, 
unnsually  large  shipments  of  railroad  stocks  and  bonds  ;  which  aoain 
reduces  our  exports  of  specie. 

Appearances  very  stronojiy  indicate  that  we  have  not  yet  seen  the  full 
effiBct  abroad  of  the  attitude  assumed  by  Congress  upon  the  debt  and 
resumption  questions.  It  is  predicted  with  much  confidence,  by  those 
most  familiar  with  the  European  markets,  that  foreign  investors  will 
now  be  prepared  to  hold  our  bonds  at  par  in  American  coin,  and  that 
further  large  amounts  will  be  called  for.  However  this  may  be,  it  is 
dear  that  the  already  changed  value  of  our  bonds  abroad  places  the 
credit  of  the  Government  upon  a  higher  basis ;  and  this  fact  is  a  sufficient 
basis  for  anticipating  that  the  gold  premium,  all  things  being  equal,  will 
hereafter  permanently  range  at  a  lower  level;  while,  in  the  event  of 
a  still  further  advance  in  bonds  abroad,  a  corresponding  further  yielding 
in  gold  might  be  reasonably  expected  to  follow. 

We  have  alluded  to  these  considerations  because  it  appears  that  there 
are  many  who  do  not  yet  fully  comprehend  the  changed  position  of  the 
premium  growing  out  of  the  appreciation  of  the  public  credit.  It  is  not 
to  be  overlooked,  further,  that  tk^  action  of  Congress  relative  to  the 
payment  of  the  debt  may  lead,  earlier  than  is  generally  expected,  to  very 
important  results  in  connection  with  funding.  Should,  for  instance,  the 
present  advancing  tendency  in  bonds  finally  carry  them  up  to  a  point 
equal  to  par  for  a  5  per  ^  cent  coin  bond,  we  should  then  have  solved 
the  problem  of  reducing  the  interest  upon  the  debt.  Without  of  course 
predictmg  that  such  will  be  the  actual  result,  it  may  be  assumed  that  we 
have  entered  upon  the  road  running  in  that  direction ;  and  it  is  only  a 
question  of  time  and  of  prudence  on  the  part  of  Congress  when  we  may 
reach  the  goal. 

But  while  these  influences  have  a  very  direct  tendency  to  place  the 
gold  premium  upon  a  permanently  lower  Itjvel,  there  are  yet  contingen- 
cies which  may  hold  this  drift  in  check.  For  several  weeks  past^  our 
imports  have  been  upon  a  large  scale  and  much  in  excess  of  those  of  last 
year;  while  our  exports  have  been  unusually  limited ;  if,  therefore,  the 
foreign  markets  should  not  take  any  further  important  amount  of  bondS| 
we  may  have  to  export  considerable  specie  during  the  Spring ;  and  this 
coDsideration  is  the  more  important  from   the  fact  that  the  exports  of 


S44  TAxme  vaii.  btrkzi.  [^ 

cotton  ar«  likely  to  prove  lighter  thio  nu  expected.  Duiiog  Uie  ini 
of  April,  Mftj,  Judo  and  July,  ovr  beftvieet  ibipmeiitB  of  coin  are  ai 
made.  Dpriog  those  four  moDtha  of  1 868,  ne  exported  $44,400,000  t 
from  this  port  alone ;  in  1867,  $31,500,000 ;  and  ia  1660,  $46,000 
The  oouree  of  the  foreign  trade  moTement  would  eeem  to  be  in 
of  equally  large  BhipmentA  this  year ;  but,  aa  before  inlioiated,  it  rei 
to  be  seen  how  far  we  may  be  able  to  Bubstituta  bonds  for  gold  it 
remittances.  Any  advanc«  in  the  rate  of  interest  by  the  Bank  of 
land,  which  aeems  not  improbable,  would  provo  unfavorable  to  a  loi 
mium,  as  it  might  ioduoe  the  sending  home  of  securities  now  being 
Tied  in  Europe  od  account  of  New  York  capitalists.  The  still  udm 
condition  ol  the  Alabama  queation,  and  the  poBsibility  of  difficult  i 
being  raised  in  connection  therewith,  and  the  diplomatic  dangers  ai 
from  attempts  to  involve  our  Government  in  the  Cuban  iuBurre 
are  also  to  be  counted  among  the  oontiDgeneies  favoring  speeulalio 
a  higher  premium.  But,  allowing  for  all  these  iofluencee,  we  thi 
may  be  safely  concluded  that,  within  the  last  three  months,  the  prei 
has  taken  «  pennaaent  downward  atep  of  eere^  points. 


TIUNO  VALL  SmST. 

The  State  Legislature  appeais  to  have  become  deurous  of  emnl 
the  example  set  them  by  some  of  our  rcTenue  officers  and  other  o9 
in  heaping  burdens  upon  our  banken  and  brokers.  The  lotema]  Rsi 
law  imposes  toll  upon  these  interests  at  every  turn.  Collector  Wt 
has  made  a  new  interpretation  of  the  tax  lavs,  under  which  the  los 
bankers  and  brokers  are  called  capital,  and  Rnbjected  to  an  onerons  i 
Congreaa  has  passed  an  act  prohibiting  the  certification  of  checks, 
aeriously  interfering  with  and  (iT  Banks  did  not  avoid  the  law)  erii: 
their  buuness ;  and  now  a  member  of  onr  Sta'e  Legielatare,  thtnkin 
poor  bird  is  not  quite  plucked  of  all  ita  ^eHlher^  propoKa  to  draw  i 
h  m  for  the  State  Government  ihe  furiher  sum  of  $1,600,000  per  ai 
Aicordingly  a  bill  hax  been  introduced  at  Albany  wliiub  propot 
impose  on  all  brokers  and  on  bankera  acting  as  brukera  a  tax  of  $50 
aUo  upon  all  SHlea  of  gold,  silver,  bullion,  foreign  excbflnge,  slocki 
bonds,  a  duly  of  l-20ili  of  1  per  cent  on  the  pitr  VHlue,  The  prop< 
auuh  aa  might  have  been  expected  from  a  rural  politidan,  who  i 
supposed  lo  have  any  other  idea  about  Wall  street  than  that  there  it 
siderable  money  there,  and  that  the  State  has  a  peculiar  right  to  » 
priate  ii  toward  defraying  lU  liberal  expenditures. 

It  is  high  time,  however,  that  this  highwayman's  notion  of  tazat 


1869]  TAXING  WALL  STRSST.  245 

to  seize  money  where  it  happens  to  be  most  abundant — were  unlearned  at 
least  among  men  holding  the  responsible  position  of  law  naakers.  An 
i(i<>a  verj  generally  prevails  that  the  business  of  Wall  street  is  merely  a 
system  of  demoralizing  speculation,  to  be  tolerated  in  much  the  same  way 
as  we  should  tolerate  gambling ;  but  which  cannot  be  overtaxed,  simply 
because  so  far  as  taxes  may  injure  its  interests  they  repress  a  public  evil. 
This  vulgar  notion  finds  countenance  too  much  among  our  legislators; 
aod  they  are  all  the  readier  to  embody  it  into  a  law  from  the  fact  that 
such  laws  awaken  a  responsive  chord  in  popular  prejudice.  This  hostility, 
however,  i»  simply  the  result  of  misconception  as  to  the  part  that  bankers 
and  brokers  play  in  the  vast  system  of  commercial  and  financial  excbang<s. 
There  is  doubtless  a  certain  amount  of  speculation  there  based  upon  facti- 
tious occasions,  as  there  is  in  every  branch  of  business  where  values  are 
subject  to  frequent  fluctuations.  But,  at  the  same  time,  there  is  much 
speculation  that  is  legitimate  and  wholesome  in  its  results.  The  perpetual 
changes  in  the  afiairs  of  corporations  are  reflected  in  the  fluctuating 
value  of  their  shares;  and  how  is  it  to  be  shown  that  the  purchase  or  sale 
of  stocks,  in  accordance '  with  these  fluctuations,  is  illegitimate.  The 
holders  of  shares  are  the  owners  of  the  properties  represented  by  the 
stock;  and  what  objection  can  be  urged  to  the  transfer  of  proprietorship, 
according  to  the  varying  estimate  of  value  between  buyers  and  sellers? 
The  corporate  property  represented  on  the  stock  boards  amounts  to  seve* 
ral  hundreds  of  millions;  and  considering  the  many  influences  directly 
and  indirectly  affecting  the  value  of  this  enormous  amount  of  securities, 
the  wonder  is  not  so  much,  that  large  amounts  of  shares  daily  change 
hands  in  the  way  of  speculation  and  occasionally  with  much  excitemenfy 
but  that  the  transfers  are  not  more  frequent  and  the  excitement  grcHter. 
The  men  who  speculata  in  stock.^  are  they  who  watch  the  movements  in 
our  vast  trans oortation  system,  in  our  mining  operations,  in  our  telegraphs 
and  in  our  state  and  federal  finances.  They  are,  to  a  large  extent  the 
owners  of  the  capital  invested  in  these  enterprises.  They  change  their 
proprietorship  according  to  their  varying  estimate  of  the  value  of  the 
several  investments;  one  day  employing  their  capital  in  one  company 
aod  the  next  in  another,  but  all  the  time  contributing  their  quota  toward 
keeping  the  commercial  machinery  of  the  nation  in  action.  Their  opera- 
tions hold  out  a  constant  inducement  to  the  organization  of  remunerative 
enterprises,  and  act  as  a  check  upon  losing  ventures.  Any  scheme  which 
promises  a  fair  return  upon  the  capital  invested  can  find  ready  takers  of  its 
itock  among  those  so-called  speculators  ;  while  such  as  are  dubious  Hnd 
"a'l  street  a  poor  market  for  their  shares.     Without  the  agency  of  this 

• 

interest,  it  would  have  been  found  impossible  to  float  the  immense  cor- 
porate enterprises  to  which  our  national  progress  is  so  largely  due.    Wall 


I  CCKOREEB   AVD  CITItntNCT  HXDEUPTtOIT.  [j' 

et,  in  (lioTt,  »  tlie  source  and  reurvoir  of  CNpital  seeking  eroployi 
ihoM  tueociate  uDdertnkiogB  which  exceed  the  resoorcee  oF  pi 
°rpri«e,  and  without  whii;h  our  cummcrciiil  and  indusinal  open 
It  have  b«en  conliDed  with'rn  dwarlish  limits. 
Q  this  view  of  the  scope  of  Wall  street  o|>erHtions,  what  is  ihe 
ify  the  disposition  shown  by  legislator!^ — statesmen  ne  rannol 
m — to  cripple  and  over-tax  this  »)>euiHl  interest  t  These  tnie 
!Ct  imposts  upon  corporate  enterprise  and  upon  credit  operations. 
the  Kcumu'ated  capital  of  the  country  is  to  leeseo  the  ioducenH 
[>Ioy  it,  and  therefore  to  strike  industry  at  its  root.  To  lax  the  In 
tecuritiea  tends  to  prevent  them  from  passing  into  the  hands  of 
whom  tliey  are  most  vnliiahle,  and  so  far  acts  injuriouslj'  upon  a 
i  enterprise.  The  tendency  of  capital  is  always  to  seek  the 
dilutive  enipliiynient;  it  will  forsake  one  investment  fur  anotliei 
most  fraeiionnl  advantnge  ;  and  a  very  liglit  irapTSt  upon  the«e  I 
.  I'OTisequently  sufrn:es   lo  ]>rcveiit  the  immense  capital  of  Wall: 

II  ri-aching  the  utmost  nttaimiKle  ri>iiiunerntioD.   To  place  this  enl 

III  the  gieat  money  ceiitre  of  the  country  has  a  moat  serious  effin 
ItiHliryinir  us  for  co:iip>-tiiig  Hiili  the  capital  of  i>ther  nations,  ani 
1  ry  direct  tendency  to  drive  capita  out  of  the  cognlry.  It  is 
finnnnliip  wliiuli  allout  a  dennicratio  prejudice  against  oapitalit 
I  expreFsiun  in  legishition  calculnttd  to  fetter  the  raovementa  of  cii 
ilie  fiee  exchanges  of  which  all  classes  and  interests  are  mul 
eHted. 


CONGKRSS  JND  CUKKENCT  REDESFTION. 
I'  the  Dutiieroiis  projects  which   have    been  offered  ia  CoDgreit  ol 
'foiin  our    liarkini.'   xtstem  prove  nothing  else,  it  is  but  fair  toi 
II    iliein,  that    there   is  in  the   public  mind   some  dissaUsfacdoo 

l>r  ctiod  noikin.-  of  the  National  Banking  Law.  As  regardt 
I- 1  oy  privileges  uf  llie  b<ak->,  the  complainla  which  are  mos 
inly  and  must  loudly  hrarJ,  address  themselves  to  three  dt 
ii<,  iiHirelv  the  larje  |irofili  made  by  the  banks  on  their  note 
(|iiiil  <liKiriliiition  of  llies-  notes  atnong  the  several  states,  and 
iiihancH  of  the   munry  market   inconsequence  of  the  bad  arr 

i<    Inr    red>^eming  the  n'tea  at  the  finanoiiil  centres. 
•^  r-1,  it  ii  I'ltimed  thai  (ha    banks   make    too  much  pro6t  on  thei 
.lioii.     To   reiiiedv    thi<,  s'>me    persons  are  )n  favor  of  sub^titi 
I  n1>  ick*,  depriving  the  nsiiunal  banks  of  their  currency  privilegfs 

riiiii  lo  the  ^i>vi-rni»eiil  the  soJe  prerogative  of  iuuing  notes  lo 
I'l-  K<  luvney.    Other  rrloruen  would  be  satisfied  to  leave  the  t 


1869]  COHOBBlfi   AHD   GURRKNOT  REDEMPTION.  247 

in  possession  of  their  ourrencj  powers ;  provided  that,  by  a  heavy  tax  on 
their  circulatfoD,  these  insLitulions  shall  be  compelled  to  share  their  pro- 
fits with  the  National  Treasury.  To  accomplish  the  same  end  others 
have  preferred  to  reduce  to  4  per  cent  the  rate  of  iiLteiest  on  the 
bonds  held  in  Washington  as  security  for  national  bank  currency.  Such 
are  some  of  the  projt^cts  which  have  originated  in  this  Orst  charge 
ajainst  the  banks. 

A  second  complaint  is  as  to  the  injustice  of  the  distribution  of  the  cur* 
rency  privilegre  among  the  different  states.  For  reasons  which  have  been 
f'^qiiently  discussed  in  these  columns,  certain  officials  in  Washington 
took  the  liberty  of  awarding  and  apportioning  to  some  of  the  richer  States 
a  larger  part  of  the  300  millions  of  notes  than  those  States  could  claim  as 
ihi'ir  fair  allotment.  This  injustice  was  rendered  the  more  easy  by 
ambiguities  in  the  three  6rst  laws  which  were  passed  by  Congress  to 
regulate  the  National  banks.  Moreover,  in  consequence  of  the  war  the 
Southern  States  were  debarred,  most  of  them,  from  the  privilege  of  shar- 
ing in  the  currency  distribution.  The  New  England  States,  however 
were  on  the  alert,  and  old  and  long  esiablished  State  banks  ceased  to 
i&sue  their  note?,  and  qualified  themselves  under  the  new  law  to  receive  and 
i^slle  National  Bank  currency. 

Just  now,  however,  the  troubles  in  Wall  street  give  greater  prominence 
to  the  third  set  of  charges  against  the  bauk^,  which  arise  out  of  the  oft- 
recurring  stringency  in  the  money  market.     The  derangement  that  these 
financial  spasms  produce   in  the  business  of  the  country,  the  loss  which 
they  inflict  upon  individuals,  the  depression  they  force  on  our  industrial 
interests,  the  frequent  checks  they  give  to  the  development  of  our  produc- 
tive powers,  and  the  absolute  certainty  that  a  better  banking  svstem  would 
be  a  certain  safeguard  against  such  disgraceful  disturbance  of  the  financial 
equilibrium — all  these  motives  combine  to  create  dissatisfaction  with  our 
banks  which  may  hereafter  prove  dangerous  to  the  permanency  of  some 
at  least  of  their  valuable  franchises.   What  changes  are  needful  to  correct 
this  tendency  to  alternate  stringency  and  excessive  ease  we  do  not  under- 
take to  Fay.     It  would,  however,  be  easy  to  siiow  that  a  valuable  tonic  for 
preventing   this  succession    of  excitement  and   depression,  of  fever   and 
chill,  would  be  the  enforced  redemption  of  all  bank  notes  at  New  York. 
This  remedy,  however,  has  always  been  opposed  by  the  combined  force 
of  the  National  banks  whenever  it  has  been  proposed  in  Congress. 

From  what  has  been  said  one  or  two  inferences  for  the  practical  guid- 
Ukceof  legislation  are  sufficiently  evident.  First,  that  much  more  radical 
measures  of  bank  reform  are  necessary  than  are  contemplated  in  any  of 
the  bills  before  Congress  at  present.  Secondly,  that  a  Congressional  com- 
mittee may  with  advantage  be  appointed  to  inquire  into  the  relations  of 


148  tnrmoATioiT  of  oonrAOK.  \j 

he  banki  with  the  mon«7  marfcet,  and  especiallj  into  Uie  reporli 
ertain  banks  help  to  exaggerate  the  periodical  atringencj  which  doi 
heorecun,  in  order  that  tbey  may  gain  larger  profiti.  ThcM  poini 
f  vital  intereit;  the^  preu  for  immediate  solution.  Many  other 
ire«  of  baokirig  reform  cad  wait  their  time,  and  can  indeed  be  better 
Flth  a^rwards. 


UltlFIGlTION  OP  COniflE. 

The  following  is  a  copy  of  a  letter  addreved  to  the  late  Secrets 
he  Treasury,  and  by  the  Secretary  snbinitled  to  Congress  id  Feb 
ut.  It  has  not  yet  been  printed  or  made  pobMc,  and  we  therefore 
Mm  for  it,  as  it  contuns  suggeitioDB  of  spedal  interest  at  this  time 

'o  the  Hon.  Hugh  McCulloch, 
Secretary  of  the  Treasury. 

Sib — Having  been  appointed  by  the  President,  a  Commission 
xamine  and  test  the  coinage  at  onr  mints,  and  acted  with  the  Coi 
ion  whose  official  report  was  signed  this  afUinoon,  I  avail  myself  < 
cession  to  suggest  some  changes,  which  I  believe  will  subaerv 
iterests  of  the  United  Slates. 

T1l9  Committees  of  the  Commission  engaged  in  weighing  and  U 
tie  coins  of  several  mints,  found  some  to  vary  a  littla  in  weight  ftoi 
>Tescribed  standard,  and  much  time  was  lost  in  casting  the  fractia 
he  pennyweight  and  grain,  and  these  computations  must  daily  emb 
iie  officers  of  the  mint. 

To  facilitate  computations  in  future, 'I  would  respectfully  recom 
tie  introduction  of  the  French  weights  already  used  by  ourchemiati 
lie  substitution  of  the  gramme  for  the  pennyweight,  to  determio' 
eights  of  OUT  coinage. 

I  would  also  suggest  [that  the  late  English  Report  on  Interna 
'Oinage  states,  that  the  average  charges  of  the  French  and  English 
>r  coinage  is  but  ^_H-s  of  one  per  cent,  while  our  charge  in  gold  i 
er  cent,  which  has  a  tendency  to  send  our  bullion  abroad  nnojined 
)r  this  and  other  reasons  to  be  presented  in  this  letter,  would  reoom 

reduction  of  our  charge  to  one  fourth  of  one  per  cent,  which 
isimilate  it  to  the  rales  of  France  and  England.  While  the  en 
lining  gold  and  silver  varies  with  the  amount  coined  fi-om  year  to 
le  aggregate  result  of  our  coinage  of  all  coins  yiel  k  a  profit  aven 
tore  than  $600,000,  which  is  more  than  twice  the  annual  expend 
id  most  of  the  profit  is  derived  from  the  inferior  metals. 

The  chief  coins  now  produced  al  the  mints  is  the  twenty^dollar  ] 


1869J  UKIFZOATIOV  or  OOINAGB.  249 

or  double  eagle,  and  this  coin  is  bo  often  required  tbat  the  production  of 
it  exceeds  in  Talue  ail  other  gold  coins  produced  by  oui  minis. 

It  is  ea  si! J  counted  and  examined,  and  is  safe  and  convenient  for  trans* 
portAtion.  This  coin,  however,  is  still  imperfect.  It  contains  pure  gold 
30.0926  grammes,  and  its  entire  weight  is  33.4862  grammes.  It  thus 
presents  two  fractions,  both  of  which  are  embarrassing,  and  I  respectfullj 
recommend  the  extinction  of  both  of  them  and  the  reduction  of  the  weight 
of  pure  gold  in  the  double  eagle  to  30  grammes,  and  of  the  alloy  to  one- 
teuth  of  the  gold,  which  will  bring  the  entire  weight  of  the  piece  to  38 
grammes.     This  coin  may  then  be  easily  weighed  and  tested. 

The  reduction  in  value  by  this  change  will  not  exceed  three-tenths  of 
0Q6  per  cent  or  six  cents,  and  of  this  amount  five  will  be  covered  by  the 
reduced  charge  for  coinage,  and  the  remaining  cent  may  be  more  than 
covered  by  a  change  in  the  mode  of  paying  for  gold  at  the  mint.  It  it 
DOW  paid  for  after  the  assay  and  coinage,  but  I  recommend  that  it  be 
paid  for  as  soon  as  it  can  be  assayed  on  the  day  of  delivery,  by  a  check  on 
the  sub-treasuries  of  Philadelphia,  or  of  New  York  or  Boston,  at  the 
option  of  the  seller,  or  in  California  by  a  check  on  the  sub-trepsury  of  San 
Francisco. 

This  will  oblige  the  owners  of  the  bullion,  who  are  usually  impatient, 
and  will  save  them  a  part  of  the  risk  and  cost  of  transportation,  and 
doubtless  increase  the  coinage. 

Should  these  changea  be  adopted,  I  would  recommend  a  discontinuance 
of  the  coinnge  of  the  dollar,  two  and  half-dollar  and  three-dollar  gold 
pieces.  The  first  is  too  small  and  extra  hazardous,  and  neither  of  the 
others  is  in  the  line  of  decimals  of  the  double  eagle. 

Id  place  of  these  unnecessary  coins  I  recommc^nd  a  two  dollar  piece, 
the  smallest  coin  we  can  safely  present  in  gold,  and  this  coin  is  one- tenth 
of  the  double  eagle*  This  coin  should  correspond  in  size  with  that  oon- 
Teoient  coin,  the  ten  franc  piece,  now  in  extensive  use  abroad.  It  would 
also  not  materially  differ  in  weight  from  the  ducat  of  Venice  and  Uolland, 
or  from  the  seguin  of  Africa  and  the  star  pagoda  of  India. 

As  rcs}tects  the  silver  coinage,  gold  is  our  standard,  and  I  would  sug- 
gest that  our  silver  coinage  should  be  in  value  fr^m  three  to  four  per  cent 
below  the  gold,  or  it  will  be  drawn  to  other  countries.  Thus  Franco 
which  has  e8.«ay^d  to  keep  gold  and  silver  at  the  same  point,  and  to  rep- 
resent five  franca  both  in  silver  and  gold,  has  lost  most  of  its  large  silver 
p\ft»^  and  been  obliged  to  debase  its  fractional  coinage  of  silver. 

As,  however,  the  silver  five  franc  piece  of  France  is  a  conveni<'nt  coin, 
contains '22i  grammes  of  pure  silver  and  2^  grammes  of  alloy,  and 
weighs  preci^iely  25  grammeb.  As  it  is  also  more  ihan  three  per  cent 
below  the  standard  of  our  gold,  I  suggest  the  policy  of  adopting  it  fur  our 


)  uinrioATion  or  coiitaqk.  [J; 

ire  dollar,  and  ito  sub-divisionB  for  our  fracUoDiiI  cnrreaey  between 
le  and  the  dollar,  vrbich  will  thus  have  weights  reprsMnted 
immes  and  one  or  two  decimals. 

[  recommend  aIbo,  ibe  introduction  of  a  new  silver  coin  equal  in  s 
two  dimes,  to  represent  the  tentb  of  tbe  two  dollar  piece,  and 
idredth  of  tbe  double  eagle,  which  will  stand  at  tbe  hsadofonr  coit 
[  venture  also  to  suggest  a  change  in  tbe    nomenclature  of  oor  coin 

0  not  propose  to  discard  tbe  "  Blmighty  dollar,"  which  has  renil 
i  conntrj  signal  service,  and  is  still  used  u>  extensively  in  the  S 
lericnn  Republics,  but  we  cannot  well  represent  it  in  gold,  and  S'>u 

1  names  of  gold  come  in  use  or  proposed  are  long  and  inconvec 
1  will  not  be  eawly  understood  or  translsted  in  foreign  lands, 

Tbe  name  of  "twenty  dollar  piece"  or  "double eagle,"  is  altogether 

g,  and  as  it  will  be  the  chief  representative  of  oar  coin  and  pKsih 

*  country  abroad,  it  is  desirable  to  give  it  some  name  that  sha 

irt,  appropriate,  expressive,  and  easily  understood  ;    a  name,  too, 

I  been  sancLioned  by  use  in  coinage,  and  I  respectfully  suggjst 

b  a  name  may  be  found  for  tbe  double  eagle  in  tbe  "angel." 

riiis  13  tbe  ancient  name  of  a  valuable  gold  coin  of  England,  that  « 

1  intrieic  value ;  it  would  probably,  in  its  day,  have  boagtt  as  mm 

:nty  dollars  would  buy  to  day  in  most  parts  of  the  world. 

[t  is  derived  from  the  Greek  angeios  and  Latin  angelus,  the  messi 

minister  of  earth  as  well  as  heaven,  and  as,  lo  most  persons,  tbe 

such  coins  nill  be  '  like  angels  visits,  few  and  far  between,"  but  *1 

lc.>me,  the  name  reems  appropriate.     And  mny  we  not  have  ihn 

Qur  country  astociated  with  that  of  angels,  when  our  messenger  goi 

invile  the  induslrioQs  artizlau  or  laborer  to  embark  for  Amari^>a. 

ne  will  be  recognited  without  translation  abroad. 

[o  Great  Brittdn  and  her  colonies,  as  here,  it  is  the — angel. 

In  Spain — angel. 

[a  Italy — angelo. 

[q  France — ange 

[n  Gerinanv,  Austria  and  Denmark — engle. 

And  in  Russia,  which  inherits  the  Greek  Church,  if  not  in  use  il 

easily  acclimated. 

[  would  suggest  also  that  instead  of  using  the  term  a  two  dollar 

it  we  call  it  a  ducat,  the  coiu  of  Venice  and  Holland,  when  greit, 

oils  and  commercial  republics.    It  is  derived,  not  from  aristocrac; 

m  Dux,  the  leader  of  ancient  Rome,  is  brief  an  i  euphonious. 

[  would  also  suggest  that  tbe  fifty    cent  and  twenty  cent  pieo 

led  florins  and  francs,  names  generally  adopted  in  Europe,  where 

uld  at  once  be  recognized.    But  names  no  oomjftia^Tely  tmmal 


1869]  UNiFiOATioir  or  coinaob.  251 

I  have  taken  two  on  the  autbontj  of  Sbakspeare  and  he  tells  us,  that  "  a 
rosebj  any  other  name  would  smell  as  sweet,"  and  if  these  are  thought 
too  fanciful  or  not  American,  we  can  e&«ily  fall  back  upon  the  dollar. 

Thus  have  I  endeavored  to  improve  the  coinage  of  America,  both  for  our 
use  upon  this  continent,  most  of  which  we  shall  occupy  in  the  coming 
century,  and  with  a  view  to  the  unification  of  the  coinage  of  the  world  on 
the  basis  of  the  angle. 

lam  indebted  to  yourself  for  the  suggestion  that  we  must  adopt  the 
German  in  place  of  the  French  standard,  anl  to  Mr.  Eliot  of  your  depart- 
ment, for  the  fact,  that  the  Union  crown  of  Ger.nany  carried  ten  grammes 
of  pore  gold  and  that  ii  was  politic  to  drop  the  fraction  of  pu  re  gold  in 
tbe  double  eagle,  and  that  three  union  crowns  would  then  equal  the  double 
eagle. 

I  was  apprized  by  him  also  that  a  trilling  change  in  the  new  doubloon 
of  Spain  migit  indentify  it  with  our  half  eagle. 

It  is  obvious  then,  that  if  we  perfect  our  angel,  it  will  be  worth  as  much 
as  three  Union  crowns  of  Germany  and  the  Baron  Girolt  suggests  that  if 
we  adopt  the  German  htandard  that  Germany  would  probably  at  once 
QDile  with  us  and  coin  the  angel  and  the  ducat. 

Austria  still  uses  the  Union  crown  but  under  the  impresion  that  the 
French  coinage  would  pervade  the  world  is  about  to  substitute  the  frano 
but  if  the  United  Statics  kJiouUI  adopt  tl  e  GertuHn  sliindaid  there  is  little 
reason  to  doubt  that  Austria  would  act  in  concert. 

How  is  it  with  our  friend  and  ally,  the  great  Empin^  of  Rus:<ia,  which 
extends  from  the  Bdtic  to  our  Northern  froniier,  and  occupies  so  lar£^e  a 
poriion  of  Europe  and  Asia.  She  has  already  adopteVl  the  Austrian  sys* 
tem,  and  twenty-five  of  her  roubles  carry,  thirty  gi  ammef*  of  pure  gold,  ana 
will  be  equivelent  to  the  angel.  It  cannot,  if  the  United  States,  Germany 
sod  Austria  agree,*be  difficult  to  induce  her  to  coin  her  twenty-five  roubles 
into  an  angle  and  then  convert  two  and  a  half  roubles  into  a  duca^. 

A^  respects  Spain,  her  new  douhloon  varies  less  than  one  half  per  cent 
from  our  half  eagle  and  we  may  safely  take  four  of  them  for  an  angle,  and 
sllow  Spain  to  make  a  slight  reduction  by  dropping  a  part  of  her  fraction 
snd  come  down  to  a  decimal. 

Since  Senator  Morgan  defeat'^d  the  plan  of  uniting  with  Ftan^e,  so  well 
sustained  by  the  Hon.  J.  B.  Ruggles,  England  has  declined  to  adopt  the 
French  fystera. 

Her  monetary  commission  has  made  an  able  adverse  report,  and  the  Lon- 
don Economist^  a  high  authority,  tavors  some  union  with  the  United  States, 
and  proposes  to  carry  the  pence  in  four  pounds  up  to  one  thousand,  and  to 
strike  a  coin  at  that  point,  which  would  not  vary  from  the  angel  more  than 
abrasion  under  which  a  coin  may  pass.    England  admits  that  we  can 


3S2  UKinoiTiOK  or  ooiwaqi.  [Jj 

^ve  the  cMting  vote  aod  would  doubtieu  follow  onr  lead,  if  ber  tl 
■nillioDB  of  people  Are  met  by  the  combined  foroe  of  SOO  niillioDs  ii 
United  States,  Russia,  Germany,  Austria  and  Spnin. 

As  respects  France,  while  I  defer  to  tier  admirable  syttem  of  wei 
wd  measurea,  I  would  ndopt  them  here,  reserving  only  the  mile,  its  b 
and  cguarters,  and  the  screa  by  which  we  are  dividing  this  coniinei 
seems  to  me  we  chd  urge  with  great  effect  that  ahe  ha>  not  perfeciei 
monetary  system  or  applied  to  it  her  own  improvements,  and  that  ii< 
France,  Italy,  Greece  or  Belgium,  will  stand  aloof  from  other  comox 
nations. 

Cbdvalier,  the  great  French  writer,  has  abandoned  the  idea  of  nnific 
on  the  basis  of  the  five  franc  piece  of  France ;  he  concedes,  in  a  recent  1< 
that  it  is  out  of  the  pale  of  the  metrical  system,  and  that  France,  a 
respect  to  the  metrical  system,  should  abandon  her  gold  pieces. 

It  may  seem  lusumiiig  for  so  young  a  na^on  as  our  own  to  tal 
prominent  a  pnrt  in  this  great  question,  but  our  population  of  tbirtv 
millions  eiceeds  that  of  Great  Britain  and  also  that  of  France.  W« 
duce  more  preciaus  metals  than  either,  and  our  system  if  improved  lu 
posed  will  be  the  most  perfect. 

They  have  both  copied  many  of  our  improvements,  and  if  we  tak 
weights  and  measures  of  the  Old  World,  it  seems  to  ms,  we  can 
inducements  to  it  to  accept  the  coins  of  the  New. 

Thus  have  I  ventured  to  sketch  improvements  and  their  beneficial  re 

First.  The  ndoplion  of  the  French  weight*. 

Second.  A  reduction  of  the  charge  at  the  mint. 

Third.  The  extinction  of  two  fractions  on  the  double  eagle. 

Fourth.  The  discontinuance  of  (hree  unnecessary  coins. 

Firth.  The  introduction  of  a  new  gold  coin. 

Sixth.  The  introduction  of  the  franc  and  florin. 

Seventh.  A  new  nomenclature. 

The  mensures  I  propose,  must  stand  on  their  own  merits,  not  on  r 
doubtless  they  may  be  improved,  and  I  shall  welcome  improvemenli 
some,  if  not  all  of  tbera,  mny  deserve  the  attention  of  Congress. 

It  has  been  tlie  singular  felicity  of  your  life  to  tatce  the  helm  of  fii 
when  the  nHtion  was  overwhelmed  with  a  debt  of  three  thousand  mil 
chiefly  flunting  and  onerous  tHxes,  at  the  close  of  a  great  contest,  s 
four  years  of  peace  you  have  paid  one  Bfih  of  the  debt,  have  reduced 
foorth  the  interest,  have  aided  in  extinguishing  half  the  taxes  and  p 
the  wny  to  further  reductions  and  an  early  return  to  specie  and  I 
behind  vou  a  surplus  revenue  of  one  hundred  millions.  At  the  cla 
your  adminisLrntion,  I  know  it  will  afibrd  you  further  aatisfac^on  to  pr 
•ome  plnn  that  shall  improve  our  own  coinage  and  require  no  recoi 
aad  contribute  to  unify  the  coinage  of  the  world. 

I  have  llie  honor  to  be,  very  respectfully, 

E.H.DXU 


1869]  THB   FUBLIO   DKfiT. 

THE  PUBLIC  DEBT. 

Mr.  Boutwell  hae  promptly  issued  bis  first  statement  of  the  public  debt 
for  the  month  of  March.  We  are  glad  to  see  that  he  has  adopted  the 
plan  frequently  recommended  in  the  Chrokiols,  of  reporting  the  accrued 
ioierest  on  each  description  of  bonds.  Formerly  this  important  item  was 
omitted,  and  in  consequence  the  monthly  schedule  of  the  debt  offered 
reiy  inexact  information  on  several  important  topics.  Another  of  Mr. 
Boutwell's  improvements  which  at  once  strikes  the  eye,  is  the  more  com- 
plete details  which  are  reported  about  the  multifarious  descriptions  of 
bonds  that  make  up  the  debt  The  meagre  details  which  have  been  here- 
tofore furnished  by  the  official  monthly  statement  have  long  been  much 
complained  of.  The  credit  of  the  government  has  suffered,  and  tlie 
uprightness  of  the  management  of  the  Treasury  has  been  questioned  in 
numerous  instances  when  during  some  monetary  crisis,  government  bonds 
have  been  secretly  put  on  the  market.  And  these  damaging  results  were 
all  the  more  obstinate  to  overcome,  because  there  was  no  method  except 
the  cumbersome  plan  of  Congressional  inquiry,  for  ascertaining  whether 
the  securities  sold  were  bonds  of  1881,  of  1862,  of  18649  or  of  some 
later  date.  Now,  however,  the  greatest  exactitude  on  all  such  questions 
can  be  arrived  at  without  trouble,  and  with  no  more  delay  than  the  inter- 
val elapsing  between  two  monthly  official  reports.  It  is  fair  to  suppose 
that  this  change  will  give  greater  firmness  to  the  quotations  for  govern- 
ment bonds ;  for  it  will  remove  from  the  market  some  of  the  chief  causes 
of  disturbance  and  depresnon.  In  the  ranks  of  the  speculators  and  cliques 
of  capitalists  who  have  so  often  enriched  themselves  by  tampering  with  the 
govemnaent  credit,  Mr.  Boutweirs  new  schedule  may  be  regretted.  But 
with  the  public  generally,  and  among  the  multitudes  of  investors  who 
hold  five-twenties  and  other  government  bonds,  it  meets  with  hearty 
approval.  It  is  indeed  but  natural  that  increased  publicity  should  please 
the  public 

From  tables  which  appear  elsewhere,  our  readers  will  see  that  no  very 
considerable  changes  have  taken  place  during  the  month  of  March.  Had 
not  the  Pacific  railroads  received  bonds  to  the  amount  of  $2,915,320,  the 
net  reduction  in  the  aggregate  since  Felruhry  28th  would  have  been  ^ve 
and  one  half  millions.  The  exact  d>  ciease  is  $2,573,039.  It  is,  however, 
to  be  noted  that  this  statement  appears  one  week  earlier  than  usual,  and 
therefore  contains  the  receipts  of  three  weeks  instead  of  four,  this  month 
howcTer,  this  irregularity  viill  disappear.  Still  the  reduction  of  the  debt 
in  March  is  less  by  four  millions  than  it  otherwise  would  have  been. 

The  total  debt,  deducting  the  cash  in  the  Treasury  is  now  12,526,196,421. 
The  Treasury  balance  amounts  to  111  millions,  of  which  no  more  than 


)  HlBtlU  RAILROAD. 


[. 


««*  JtEW  ■ 

$0,802,628  ia  in  currency.  This  sum  is  a  very  Bmall  working  balan 
Mr.  Boutweli  to  conduct  hia  immense  Treasury  business.  It  ia  euy 
however,  why  it  bas  been  nllowod  to  run  down.  The  money  marl 
some  time  past  has  been  extremely  unsettled,  and  during  the  past 
a  spasm  of  great  severity  has  prevailed.  Under  theae  circumetan 
was  necessary  that  Mr.  Boutweli  should  gire  ease  by  letting  his  eui 
balance  run  low.  Indeed,  there  is  in  Wall  street  a  general  belief  th 
for  Mr.  Boutwell's  timely  precaution  the  monetary  atringency  mns 
been  far  worse. 

The  aggregate  of  our  nstional  securities  now  outstanding  amoi 
$2,896,898, 5 U 8.  This  prodigious  sum  represents  the  principal  of  ou 
and  under  the  provisions  of  the  public  credit  bill  the  amount  ia  to  t 
eventually  in  gold.  An  exRinination  of  our  tables  will  show  that 
threefounhs  of  the  whole  debt  bears  interest  at  six  per  oent, 
remainder,  with  the  exception  of  221  roillioos  of  live  per  cent  gold 
and  68  millions  of  currency  band:i,  CMisists  of  matured  debt,  greei 
nod  other  pape^ money,  bearing  no  interest  at  all. 

The  amount  of  accrued  idlerest  on  the  91ft  March  was  t30,30 
Adding  to  this  sum  the  principal  of  the  debt,  we  hare  as  the  amo 
our  total  obligations  for  principal  and  interest  $2,636, 202,4fiS.  i 
cash  io  the  Treasury  amounts  to  $111,005,993,  the  net  •ggregat 
of  cours<%  be  reduced  by  that  sum,  and  will  amount,  as  we  said  ab 
about  2,6S6  millions  dollars,  or  about  two  and  one  half  millions  les 
the  report  of  the  preceding  month.  On  the  whole  the  statement  bel 
may  be  pronounced  as  in  form  and  substance  very  satisfaotory. 


NEW  YORK  iND  HIRLEIR  BilLROlD. 

The  New  York  and  Harlem  Railroad,  as  our  readers  are  award,  ei 
from  New  York  City  to  Chatham  Four  Corners  130.75  miles,  and  i 
the  cars  pass  over  the  Boston  and  Albany  Railroad  to  Albany  S4 
further,  making  the  whole  distance  from  New  York  to  Albany  1541 
That  portion  of  the  line  between  Dover  Plains  and  Chatham,  60} 
was  paid  for  by  what  are  termed  "extension  certificates,"  moit  of  ' 
are  now  held  by  the  New  York  and  Harlem  Company,  A  brancli 
from  Fort  Morris,  on  Long  Island  Sound,  2.12  miles  in  length,  joii 
main  line  about  9  miles  north  of  New  York  City,  The  amou 
second  track  and  sidings  on  the  line  is  45}  miles.  Gauge  4  feet  8}  ii 
Rail  used  56  to  04  Ibi.  to  the  yard.  Some  considerable  quaotityof 
rail  have  been  laid.  On  October  1,  1868,  the  company  had  in  tu 
their  road  41  locomotires,  61  passenger  cars,  40  ba^age,  mail  sod  si 


1869] 


HKW  TORE  AND  HIRLKM  RAILROAD. 


255 


ears,  and  723  freight  cars.  The  city  line  care,  93  in  number,  which  rnn 
between  the  City  Hall  and  the  Passenger  Depot,  26th  street,  are  drawn 
by  horses.  The  following  shows  the  amount  of  roiling  stock  in  use  Octo- 
ber 1, 1863-1868,  inclusive: 


1868. 

83 

81 

Can:  •<  BagKaffe,mAil&  express. 11 

(FreKht   481 

Citj-IinecArs 46 


LoeomotlTes. 

(  Pssaenger  . 


1864. 

1865. 

1866. 

1867. 

1868. 

85 

43 

43 

41 

41 

40 

eo 

60 

71 

81 

17 

S3 

S8 

87 

40 

661 

687 

6» 

696 

7S8 

60 

60 

78 

78 

98 

The  results  of  operations  for  the  year  ending  September  30, 1868,  were 
as  follows :  The  distance  run  by  locomotives  hauling  cars  was  (passenger 
383,907,  freight  340,468,  and  other  21,845,)  746,220  miles.  Tbe  trains 
of  the  New  York  and  New  Haven  Company,  which  are  tolled  over  that 
part  of  the  line  between  Williamsbridge  and  New  York  City,  run  210,583 
miles.  The  city  line  (horse)  cars  run  885,141  miles.  The  number  of 
passengers  carried  was,  (regular  1,275,704,  and  commuting  391,814) 
1,667,578,  and  the  numbers  of  passengers  carried  one  mile  was,  (regular 
24,781,777  and  commuting  4,850,250)  29,632,027.  Th^  city  line  carried 
7,090,197  passengers.  The  amount  of  freight  transported  was  287,552 
tons,  or  15,852,537  tons  one  mile.  The  gross  earnings  from  all  sources, 
including  $261,330  from  the  New  Haven  Company,  amounted  to 
$2,756,232,  and  the  working  expenses  including  taxes  were  $1,772,687 
leaving  £or  net  earnings  $983,545.  This  was  paid  out  thus:  interest 
$375,467,  United  States  tax  on  earnings  $27,655,  and  dividend  $580,423^ 
Eight,  per  cent  dividends  have  been  paid  for  the  last  three  years.  The 
foUovving  is  a  recapitulation  of  the  operations  of  the  company  for  ^ve 
years : 


1868-64. 

PUfeoger 860,5U 

ifit..  «.«    Fndgkt 866,603 

!l?^iJX2'  "^^"^ 8«-«^o 

t    Tout 750,963 

KilettbyN.  Y.  A  N.H.tnlxiB 184,957 

Cltylilnecars 783,016 

fRegnlar 004,996 

Flua*^TB.JCoiiimaci]ig 183,491 

cairled.  '  

I    Total 1,177,789 

City  Line  patseDgeiB 6,796,988 


1866-67. 

893,878 

894,213 

86,589 

814,709 

S18,197 
918,146 

1,907,486 
878.843 

1,680,881 
7,049,833 

«...«».*.  fKcgtilar 1T,1«T,<«0:  88,901,148    88,730,004    84,646,963 

™JgJJ     OommuUng 8,814,768     4,198,910     4,845,806     4.788,760 

omB  mile        vpftf  ai 
MileibyCyLiiiepaB^ra , 


1864-85. 

868,870 

419,089 

83.897 

1885-66. 

885,688 

465,«81 

18,584 

821,365 

839,483 

196,011 
801,618 

804,40T 
960,641 

1,085,016 
807,639 

1,113.988 
898,660 

1,848,345     1,407,588 
7,198,476      7,881,688 


1867-68. 

883,907 

810,463 

81,845 

746^ 

810,681 
88>,148 

1,875,764 
801,814 

l,6»i7i5TO 
7,090,197 

81,781,777 
4,^60,860 


80,049,631  88,093,858  80.584,810  80  480,718  89,683,087 

8,698,857  10,790,814  11,0^7,531  10,574.734  10.635,305 

Tons  of  freight  moTed 836,467  889,603  898,?09  864,428  887,658 

Tonacairiea  one  mile 15,571,888  17,158,978  83,107.083  16154.804  15,853,537 

r  PaBieDgar $735,161  $1,053,816  $1,180,875  $1,096,843  $1,093,801 

«««.-        Freight 864,558  1,008,663  1,800, '88  1,167,631  1,803,576 

j™^-j  Other 8uO,-»09  853,718  853,641  434,153  453,436 

Total $1,860,488  $8,509,785  $3,788,699  $9,688,131  $3,756,383 

Operating  ezpenaea 1,409,880  1,874,677  1,664,830  1.531686  1,773,687 

NeteiznlngiCproillts) $450,608  $685,048  $l,lloi868  $1,166,486  '$mfiii 


256  HSW  TOBX  AND   BARLBU  RAILROAD.  [^P^ 

In  the  following  table  we  give  certain  dedactions  in  relation  to  eamingi 
and  expenses  for  the  same  five  years : 

n-'^n-   (^ftrnlngt 14,00S  18.888  »,fl50  SD,ttl  M,744 

^^1®  -iBxpen&t..    10,610  14,109  1S.6S6  1J,431  18.111 

«*"»*••  I  ProflU 8,a9S  4,T»  8.4M  S,T»  T,4M 

Bxpenufltoeags— p.  c 16  77  74.09  69.79  66.61  64.Si 

We  have  never  seen  a  balance  sheet  of  the  Harlem  Company's  a£f&in, 
and  assume  that  none  was  ever  published.  The  following  has  been  com- 
piled from  the  yearly  statements  made  to  the  State  Engineer  and  Sur- 
Teyor,  and  shows  the  financial  condition  of  the  company  at  the  close  of 
the  fiscal  years  1863-64  and  1867-68  inclusive: 

18B4.     1866.    1866.    1807.    !£«. 

OommODBtock. 6,080,050   6,060,060   6,186,060  6,98»,0B0  6.600,006 

Preferred  Btock. 1,600,000    1,600,000    1,600,000  1,6<0,0j0  1,200,060 

Funded  ilebt 6,116,K)0   6,098,046   6,169,866  6,998.695  6,060,« 

Sxtene  on  certiflc»tes 69.600        59,600        97,600  18,600  1I,MB 

Real  estate  mortgage 08,187       97,074       67,074  87,000  1^<IN 

Total 19,861,487  isi880,669  18i«M89  19,834,176  WMK» 

Per  contra :  Road  and  property  as  follows  : 

Road  and  branch  (89. 97 m.) 7,510,789  7,708,611  7,946,064  8,491,686  BJSStJsn 

Bztenaion  (60.60  m.) 9,000,0lX)  9,000,000  9,000,000  9,000,000  9,0»MXn 

Jfaoipment 1,106,999  1,469,967  1,499,481  1,668,697  l,mja 

Realeatate 1,190,899  1,144,181  1,168,059  1.109,866  tBTJOO 

COatof  piopertj.  11,786,860  {m^SO^  19.698,464  18,164,747  13,098,000 

It  will  be  perceived  that  the  affairs  of  the  company  have  materially 
improved  during  the  last  five  yean,  the  value  of  the  property  being  now 
largely  in  excess  of  stock  and  bonds,  whereas,  in  1864  their  relation  was 
the  reverse. 

In  the  following  exhibit  we  giye  a  detailed  description  of  the  bonds  of 
the  company  outstanding  at  the  close  of  the  last  fiscal  year : 

Cnaasea  of                                          /—-Interest — ^-^  Date  of    AmomtoBt- 

BecnriUts.                                       Bate.       Periods.  Matniltr.     standing. 

1st  mortgage  of  1868 7  May&Nor.  Hay  1,  ItfTS.     $ZfimiBO 

4th  mortgage  of  1461 7  JnneADee.  Jaoel6,t8Tl.          99,900 

Consolidated  morteage  of  1868. 6  Feb.  &  Ang.  Feb.  1,  Idas,      1,767,000 

Btnkirg  find  of  1861 7  Jan.AJo'j.  Jan.  1, 1881.         110.100 

Untecored  bonds  of  1868 7  Jan.AJnjjr.  Joljl,  1919.        V»jm 

Put4ne  bonds 7  1.U9 

Total i5loS6,» 

Tbo  Albany  extension  certificates  L>ear  7  per  cent  interest,  payable  semi- 
annually,  January  1  and  July  1,  and  mature  January  1, 187d«  Of  tbi 
original  (^2,000,000  of  this  issue  only  $16,600  now  remain  on  the  market. 

Not  many  years  ago  Harlem  stock  was  utterly  without  value.  lo 
January,  1860,  it  sold  at  Si@9i ;  1861,  at  16@16i ;  1862,  at  12^1^, 
and  1863  at  27^40.  In  August,  1863,  it  ranged  from  126  to  179; 
and  in  June,  1864,  from  260  to  286*  The  cause  of  this  rise  in  price  was 
that  extensive  sales  had  been  made,  while  scarcely  a  share  could  be 
bought  for  delivery.  The  whole  stock  was  held  by  the  few  men  wbo 
have  since  administered  the  affairs  of  the  company  with  such  oonsumnute 


1869]      ILLIKOra   CSVTRAL,  PITTflBTTRQi  STO.,  RAILROAD   REPORTS.  257 

skill  that  their  stocks  are  now  classed  among  the  best  in  the  country  for 
investment.  We  give  below  a  table  showing  the  course  of  prices  for  the 
last  six  jears : 

Vonthg.  1SS8.      1t)64.     1866.    1806.    1867.     1868. 

Jmiary 17^^49       m^mOS       ..®..        ..^..        .  ©..       112fti») 

Febroiry...  82    ^87X108    ©1?J7X    .^.        ..®.  ..©..        l3i9(ai81X 

MaMh 86  <rt^ 47    101  m^^      .(a..       @.     .(a..      .(§).. 

April 42if(a  7«3iC  1*^0    ©•i-'e        .  (?^,,        ..(a  .        ..<a..  ..§.. 

May 79    f<nll83tf  224    (^'^1        ,.(^..        ..^..        9(^95  (^  . 

Jano 97)1^(9^ H)9J<  260    (^'2^5        ..(a..  (a.-      UO&IUO     l»^^li7 

jQif  92  (^125       .  (a--      .(a..     ..(a..     .({$•.     123  in 

A'ignst 125  (an9       ..(^..      ..(a..       <a-.     .  (a..      ..(a 

8e  tember 115    @^  f>4)i  ..(a*  •^*  ••@^-*  12'2(au0     124(ai24 

0  iiurr. 80   (ai45  ..(a..  75((0TT  ..(a .       ..©..         ..(a.. 

Kry-mber 88    ^UO  ..^..  ..&.,  97®^  ..ft»..          ..".. 

December 87;^®  **»  ..©  .  --©-•  (a..  llF®118itf  I20(ai28 

Tear 27^^179     86>i®2S5       76^77       97^97       95@U8>if  11^81X 


IimOIS  CENTKll,  PITTSBURG.  FORT  WITNE  &  CHICAGO,  AND  CLEVELAND 

&  PITTSBURG  RAILROAD  REPORTS. 

The  annual  reports  of  these  iniportant  companies  have  recently  been 
made  for  the  year  ending  December  31,  1868,  and  we  ftall  present  to 
onr  readers  very  soon  articles  at  length  upon  each  of  them,  comparing 
the  operations  of  the  year  1868  with  those  of  several  previous  years.  For 
the  immediate  information  of  parties  interested,  however,  we  give  below  a 
SQinmary  of  the  operations  of  each  road  for  the  year  1868  : 

ILLINOIS   OBNTRAL   RAILROAD. 

The  President,  in  bis  report,  gives  the  following  summary  of  operations 
for  the  year  1868: 

"The  gross  earnings  of  tins  railway  for  the  year  1868  amount  to 
$7,817,629  24,  the  operation  expenses  to  $4,590,681  91,  State  taxes  to 
(441,597  57,  and  rent  of  leased  line  in  Iowa  to  $370,365  18,  leaving  net 
$i,4l4,984  58,  against  $2  480,567  72  in  1867.  The  per  centai^e  of 
expenses  to  earnings,  including  State  taxes,  is  64  87-100,  against  65  610 
in  1867. 

^  These  6gures  include  earnings  over  leased  lines  in  Iowa,  which  amount 
to   $1,019,698    72;    operation    expenses,  $515,895    60;    State    taxes, 
$13,200  09,  and  rent  $370,365  18,  leaving  a  net  profit  of  $127,076  79 
after  making  liberal  expenditures  in  improvements. 

**  The  tonnage  hauled  in  1868  >as  1,439,675  tons,  against  1,300,835 
tons  iQ  1867 ;  the  average  distance  each  ton  was  hauled  being  203  miles 
in  1868  against  131  miles  in  1867. 

'  During  the  past  year  the  amount  paid  for  dividends,  including  govern- 
ment tax,  was  $2,461,568  42,  being  at  the  rate  of  10  per  cent  on  the 
capital  stock ;   in  addition  to  which  stock  was  distributed  to  the  stock 

2 


25S  ILLINOIS   OKKTRAL,  FITTSBUBO,  BTO.|  RAILROAD  RKFORTS.    [Apftl^ 

holders  in  August  last,  at  the  rate  of  eight  per  eeot  on  the  share  capital 
in  accordance  with  a  resolution  passed  at  the  last  annual  meeting  of  share- 
holders. The  amount  paid  for  interest  on  funded  debt  and  sterliog 
exchange  was  $755,716  02  ;  and  after  paying  State  taxes,  rent  of  leased 
line  and  all  other  claims  upon  the  operations  of  the  year,  we  had  a  balsDce 
on  the  first  day  of  January,  of  net  cash  assets,  amounting  to  $2,012,927 
83,  out  of  which  a  cash  dividend  of  Gve  per  cent  was  paid  during  ihe 
present  month.  The  stock  of  working  supplies,  inventoried  at  cost, 
amounts  to  $844,139  29.  The  funded  debt  was  reduced  $1,167,000,  sod 
amounted,  on  the  1st  January,  to  $9,377,500. 

''In  the  land  department  the  collections  amounted  to  $3,200,289  21, on 
account  of  old  and  new  sales,  of  which  $2,070,431  31  is  applicable  to 
the  cancellation  of  construction  bonds,  $558,140  61  to  Free  Land  fund,  and 
$407,925  56  to  Interest  fund.  The  expenses  for  the  year  were  $143,709  39. 
There  were  surrendered  to  the  trustees  during  the  year  $1,832,500  of 
construction  bonds,  at  a  cost  of  $2,070,725  against  the  collections  on  that 
account  The  amount  of  bonds  now  in  their  hands,  in  advance  of  deeds 
issued,  is  $4,423,819  of  which  $3,173,000  is  in  advance  of  collections. 
The  sales  were  207,008  37-100  acres  to  2,776  purchasers,  for  $2,228,- 
325  90,  averaging  $10  76  per  acre.  The  total  number  of  deeds  issued 
up  to  the  close  of  the  year  covered  1,124,446  86-100  acres  of  the  original 
grant.  The  amount  owing  to  the  company  for  lands  is  $6,128,087  59. 
On  most  of  the  obligations  for  lands  one  or  more  payments  have  beeo 
made.  This  facilitates  future  collections,  and  I  expect  the  receipts  of  the 
department  during  the  present  will  be  equal  to  those  of  the  preceding 
year.  There  still  remain  unsold  520,690  46-100  acres  of  land,  to  which 
may  be  added  about  96,504  acres  (old  sales)  subject  to  cancellation.  Of 
the  lands  sold  during  the  past  year  115,496  were  located  on  the  Chicago 
Branch,  between  Champaign  and  Kankakee. 

''The  net  receipts  from  railway  and  land  department  during  1868 
amounted  to  $5,451,775  75. 

OKNSBAL  STATElCEZrr  OONDENSXD  FROM  VARIOUS  AOOOUKTS. 

Janairyl,  1668:  J>r. 

To  balance  of  oet  caih  aesets  as  ihorn  m  laat  annual  report $1,7^5,606  tf 

Togro»BeamingBinl8e8,  In  Jlttoois « $0,197  990  63 

To  irrosi  earni  gs  in  18tfS,  in  Iowa I,01»,e98  7S 

7,817,9»M 

To  net  receipta  of  I^and  Department. 8,095,^  <A 

To  amount  ot  6  per  cent  Sterling  Redemption  ¥ondfi,  iaaaed  in  ez> 

change  for  6  per  cent  Uonetmciion  bonds ?,06l,BOO  00 

To  increase  of  capital  atJCE 1,881,1(1000 

$lB,57S.6i8  4S 
jonoary  1,  1860 : 
To  balance  bronyht  down,  consiating  of  net  cash  aaaets  in  New 
York  and  Chicago,  and  exctneiTO  id  the  working  stock  of  supplies  |S^0tl.9>T  83 

December  81, 1«68 :  CV. 

Bypennanent  expenditures $5T10M]|0 

By  operation  expenses 4JBM,tSl9L 

By  tax  paid  the  state  ot  Dlinois,  being  7  per  cent  on  the  grosteamings  for  ths 
year  ending  October  81,  I818 ^ tf8^« 


1869]     iLuvon  okktral,  pnTSBURO,  bto.,  railroad  rkportb.       259 

Br  tax  p  )id  the  State  low  ofii  on  the  grota  earalngs  of  leased  line,  to  December 

«1,1«8 18,900  09 

Bj  rent  of  leased  line  \ "  Iowa  for  the  year  ending  December  81, 1868 870,8(16  18 

Of  ioterest- ou  funded  debt 756,716  98 

iTdlTid^'nde  paid  in  18fia,  being  10  per  cent  on  the  capital  atock,  and  inclnding 

UQiU>d  States  ta.z        S,4<n.B68  48 

Byitockdlsirintionia  Angn8t,1868 1,871,100  00 

Kyiacreasein  wo-kini;  stockof  sn  'plies 28.104  90 

By  amMUDt  of  bonds  parchased  and  calleil  lnl898 1,167,000  00 

(Total  reduction  in  fonded  debt  in  1668.) 
By  amount  of  Con«>tractlon  0  per  cents  receiyed  In  exchange  for  sew  Sterllog 

Redemption  bonds 9,061,600  00 

By  premiam  and  commissions  paid  on  bonds  called,  purchased  and  exchanged..  940,051  70 

By  balance  carried  down 9,012,997  88 

$16,679,698  48 

OKSBBAL  BAIAKGB  BHEBT. 

Dr. 

Psrmament  expenditures $81,000,4&7  81 

laterestand  •  ividt  nd  account $19,555.087  80 

Less  avaiis  of  Interest  Fund 8,881,060  75 

9,174,887  05 

Netea»h  assets   ^ewYork 1,634,208  98 

Net  cash  aasetd,  Chicago....        828,699  60 

9,019,927  88 

Premium  paid  on  bonds  delivered  Land  department  in  anticipation .  176,418  59 

Working  stock  of  supylies 844,189  99 

$44,108,880  00 

Capital  sto^k $95,977,970  05* 

OucelleH  bonds  scrip 19,610  00 

Fnndcd  Debt— 

Gonstmc.  ion  bonds  due  April  1, 1876, 7  per  cent $8,965,000  00 

"             "          ^*         Oierceot 487,600  00 

Redemption  bonds,  due  April  1,  1890 9,66 ',500  00 

Sterling  Redempi ion  bonds,  due  April  1, 1875 9,494,600  00 


>ondsde*lYered  Land  department 19,607,600  00 

Less  in  hands  of  trustees 8,17^,000  00 


9,877,600  00 
9,434,600  Oa 


$44,106,880  00 
PITT8BURO,   FORT   WATMB    AND    CHIOAQO. 

The  report  of  this  company  shows  the  followiDg  earnings  of  the  main 

line: 


Prom  local  freights $1021,667  98 

Forelicn  fr  Ights 8,910.V88  80 

Local  passengers 1,8  689176 

Foreign  pMsengers 1,18\S78  70 

Ezpreas  matter 110,97)  CO 

Mai  service .98,900  00 

Ren  of  railway 86,000  00 

Rent  of  other  property 6,754  16 


Miscellaneous  sources $11,480  85 

^        Total ...  $8,041,180  70 

Gross  earnings  of  main  Lne  in 
1667 7,949,195  96 

Increase  UX  per  cent $799,064  74 


The  gross  earnings  per  mile  of  road  in  1868  were  $17,171,  being  an 
increase  of  |1,706  20  per  mild. 


■XPXN8B8  or  THE  MAIN   LINK.  , 


Foroondoctinstransportaticn...  $1,841,450  66 

Uotiyo  power  .  1,409,645  77 

Maintenance  of  way 1,957,785  45 

MoUto  poner $5il6,90:i  81 


General  expenses 807,16141 

Total $6,009,UO  60 


These  expenses  show  an  absorption  of  62  1-5  per  cent  of  the  earnings 
which  is  5  per  cent  less  than  in  1867. 
The  set  earnings  of  the  main  line  in  1868were $8,089,070  10 

"     "      1S67  -  :::;  •S^aSS 

Increase  en  8-5  per  cent) $UN),610  Sl 


260        iLLnrois  obntral,  pittsburq,  i^c^  railroad  rxports.  [Aprilj 

B01I1IABT  OF  MR    EttULTB. 

A  summary  of  the  net  result  of  the  company's  basineas  for  the  year  is 
as  follows : 

KetearnlntBOf  mainline $S,0S9(nn  10 

l^oflt  in  opfratln^  New  Ca-tle  Branch 9>Jf9tS 

**  *'         the  Lawrence  Branch ^.  S,101U 

Total  net  reyenne $jl,ia2,M)97 

Fromwhirh  dednct  iDtereston  mortgage  debt 816,iOJ  17 

Sinking  ftind  Installments $104,100  00 

latereet  of  honds  purchased  hy  trustees  <'f  sinking  ftands 18,693  48—      lSI,tt9  48 

Due  Cteyi'Und  and  Plttsbnig  KailroadCompaiiy  under  the  contract  for  d  Tision 
ofearnlnga «10,S03  50 

$U48,9(n  14 
Balance  equal  to  16  6-6  per  cent  on  the  capital  B^ock...  1,985,16585 

DXTXnaRDB. 

From  which  haa  been  paid  four  quartely  dlTldenda  at  the  rate  of  10  per  cent  per 

annum $l,149,'n500 

U.  t).  tax  on  the  same eo^Ml  83 

Total $l,ilO,S86  83 

Leaving  surplus  Tor  year $748,S2098 

To  which  add : 

Incre  se  of  mlscella  neons  liabilities $57,748  li) 

Increase  of  amounts  due  for  current  expendl> ures 103,470  S8 

Redaction  ot  sn*>plies  on  hand 82,109  86—      183,816tt 


To  be  aeoounted  for ^MJBSliJ 

APFmOFEIATIOKS. 


Appropriated  as  follows : 


New  onetmction  and  equipment $510.7M  61 

Extension  of  Akron  branch •• 60,686  81 

Ibicreaeeof  net  amount  due  by  other  companies. 91,641  15 

Increase  of  sinking  fhnd 119,8  9  76 

Increaae  of  miscellaneous  aseeta 149.481  S9 

Increase  of  cash  on  hand 65,608  9&~      916,83737 


CLBTELAND   AKD   FlTTSBURa  RAILROAD. 

The  report  shows  the  following  receipts  in  gross : 

From  Passengers $600,869  19 

'*     Freight 1,610,881  16 

**     Hlecellaneous  sources 88|667  69 


"     F.  F.  W.  A  O.  Railway— due  this  Co.  in  settlement  of  Joint  eai^ 

5itai;i;;;;";!;!;;!:;!;;;;;»i!!i!;;:;;;;";.;;;;;iiJ!;;!!;i;;»; — : — $9,498^$ « 


nings 189,869  80 

From  which  deduct  expenses : 

For  account  HotlTe  Power  a  dCars $643,196  06 

*^      Maintenance  of  Way  and  Stmctures 408,118  18 

"       Trdusportation  Expenaes 888,095  47 

"       General  Expenses 181,000  88 

Total.—  .., $l,4TO,4g  54 

AndthenetReeeiptsare $l,0»,l»80i 

From  Ihese  have  heen  paid : 

Mortgage  Interest,  Ac $314,884  65 

Leaseof  i  rack  P.  F.  W.  and  0.  Railway  .    83,000  00 

Sinking  Fund— Mortgage  Bonds  of  1900 86,000  00 

Total .Trr. "  $494,884  65 

Leaving  as  the  proceeds  ot  the  yoar*B  business..  ■ »  $697.9084^ 

Comparing  these  figures  with  those  for  the  previous  year — ^The  gross 

receipts  show  an  increase  of  $104,891  92,  while  the  expenses  notwitb. 

standing  the  large  increase  of  tonnage,  show  a  decrease  of  $18,382  29,  ao^i 

the  ne;  income  after  payment  of  interest,  lease  and  sinking  faad,  etcei'J^ 
that  of  last  year  in  the  sum  of  $136,519  55. 


1860]  DEBT   AND  FINAK0K8   OV   THE   8TATB   OV  KBW    TORE.  261 

JIBBT  AND  FINANCES  OF  THE  STATE  OF  NEW  YORK,  NO.  i. 

In  our  Magazink  of  March  we  showed  from  the  official  record  that 
the  debt  of  New  York,  exclusive  of  the  contingent  debt  of  $68,000 
amounted  in  gross  to  $44,900,786.40,  and  ibat  it  was  subdivided  into 
tliree  classes,  viz.:  the  General  Fund  Debt,  $4,707,826.40;  the  Canal 
Debt,  $14,249,960 ;  and  the  Bounty  Debt,  $25,943,000.  The  two  debts 
fir^t  in  onler  are  pro/ided  for  and  will  be  paid  principal  and  interest  as 
tlir'v  mature  from  the  surplus  revenues  of  the  State  Canals.  The  third 
liss  of  debt  is  payable  in  1877,  and  for  its  extinction  a  sinking  fund  has 
l>t^en  created  on  the  basis  of  a  tax  sufficient  to  accomplish  that  end. 
Tills  tax  is  now  three  mills  on  the  dollar  of  the  taxable  value  of  real 
estate  and  personal  property.  It  is  evident  from  these  fkcts  that  in  less 
iban  ten  years  the  whole  present  debt  of  the  State  will  be  redeemed 
hiid  thai  the  canal  revenues,  unless  charged  with  some  new  debt,  will  re- 
luahi  as  a  perinanent  source  of  relief  to  the  general  treasury,  while, 
ulinittingof  a  reduction  ia  the  tolls  to  the  benefit  of  ourselves  aud  of  the 

At  the  present  time  the  population  of  the  State  may  b)  estimated  at 
fdl.y  4,000,000.  The  vakialion  of  18G8,  on  which  the  taxes  for  1868-69 
are  assessed,  is  $1,766,089,140,  Hud  the  total  taxation  on  this  ba^is  for 
ihat  year  will  be  $44,298,435.90,  of  which  $2  207,611.42  (1;^  mill)  is 
f'T  school  purposes  and  $8,035,705.59  (4.55  mills)  was  for  State  and  debt 
j'jrposes.  The  local  taxes  included  in  the  aggregate  amount  to  $8,525,- 
4w'2.14  for  towns  and  $25,529,696.45  for  counties.  The  total  amounts  to 
2.51  cents  on  the  dollar  valuation,  but  varies  largely  in  the  several  coun- 
ties, being  as  low  as  0.95  in  Wyoming  County  on  a  valuation  of  $9,0C  1,- 
050,  and  as  high  as  6.67  in  Hamilton  County  on  a  valuation  of  $46(^,381. 
Id  the  following  table  we  give  the  population,  valuation,  and  taxation  at 
quinquennial  periods  from  1845: 

Poiulft-  Yaliutloii  l/OCAland  Bate 

tioa  of  oi  prop-         Btate        hchool  Total  per 

Mate.  erty.            u^e".       t.xoii.  t*izes.  1,UOO 

^^45 8,604,496  $605,M6,095  $*»'.310  $3,S0<».2lS  $4,n'J.52S  0.«8S 

l^J 8.097,894  1^,494,588       »i4,»  4     &,9<8.7«.^  6,«l•^,7^7  0.8H7 

'*o5 8,4fi6,2!8  1,408,849.3(U  17  1,718      9,924,454  i:,67«.172  0  f88 

'•--* - 8,860  788  1,41»,«97,520  4.H7«>,  ti7  14/.?«,H67  18,»5fi,0i4  1.885 

-"'* 8,800,000  :,55(i,679,685  C.0m,8.7  89,8»3,«24  45,961.441  3  968 

1^ 4,000,000  I,7b0,0b9,140  8,0^ 7uS  8U,kb2,7^  44,v96,486  3.6U8 

It  thus  appears  that  taxation  has  outstripped  largely  the  valuation  on 
which  it  is  based,  the  valuation  having  between  1845  and  1868  increased 
$1,160,443,045,  or  191.6  per  cent,  while  in  the  same  ])eriod  tiie  increase 
in  taxes  has  been  $40,127,908,  or  962.2  per  cent,  and  the  increase  in 
rate  182  mills  on  the  dollar,  or  264.5  per  cent.  Between  the  same  years 
the  ratio  of  valuation  to  population  has  increased  89  9  percent,  and  of  tax- 


S62  HUDSON   RIYKR  RAILROAD.  [^P^k 

ation  to  population  bas  increaBed  587.0  per  cent.  This  increase  in  taxa- 
tion, however,  is  more  apparent  than  real,  for  it  is  well  known  that  the  real 
valuation  is  far  ahead  of  the  assessed  valuation.  The  federnl  census  of 
1850  stated  the  real  value  of  property  at  $1,080,309,216,  and  in  I860 
at  11,843,338,517,  showing  an  increase  in  ten  years  of  $763,029,301 
or  70.63  per  cent.  Applying  the  same  average  rate  of  increase  to  the 
eight  years  since  1860,  we  find  that  in  June,  1868,  the  real  value  in  New 
York  would  be  $2,885,698,512,  or  larger  by  63.5  per  cent  than  the 
assessed  valuation.  Such  an  increase,  or  even  one-half  that  increase, 
in  the  assessed  valuation,  would  very  materially  efiect  the  apparent  rite  of 
taxation,  as  given  in  the  table  above.  The  rates  of  taxation  levie  1  on  the 
valuation  of  property  in  the  State  for  the  year  1867-68,  with  the  rates 
estimated  for  the  two  years  next  following,  are  as  given  below  : 

, 1867-68 .  , 1868-f^ »  . 1889-W > 

Mi  )8    Amoant  M 11*    Amoant  Mills    Amosat 

on  dol-    ot  pro-  on  dol-   of  pro-  on  do  -   of  pro- 

lar.        ceeds.  lar        ceedl^  Ur        r^eds. 

General  fnnd 3.46  $4,094  ens  1.95  $3,'i07/ai  l.«  $^8»7,sn 

Bchoo'8 l.M      S,080,135  1.28      «.v(i7.61l  l.SS     t2lW,6ll 

Canal  deficiency 0  6a)ft'  I.OiO.Ort?  1.06)^1,86.715  0  MH     ^^ 

n.  debt  sinking  fand 3.00      4,992.33:i  9.10X8,8  6,537  8.3b     3,<r<S,'i0l 

Ballroads O.Sttjtf     440.038  0.08        18\^')        

Total 7  60  $13,647,318       (L80  $10,348,817       4.87>i  8.6b  ,«« 

These  exhibits,  and  suoh  as  we  presented  \a  our  former  issui'  on  this 
subject,  indicate  the  healthy  position  of  our  State  finances.  It  is  trae 
that  our  taxes  are  at  present  heavy,  but  it  is  gratifying  to  know  that  cor 
means  are  large,  and  our  burdens  being  constantly  decreased. 


*^^^»^^0^^^0^^'^^^m 


HUDSOir  EITBB  EAIIBOAD. 

This  great  road  runs  parallel  with  the  Hudson  river  from  New  York 
city  to  East  Albany  (144  miles),  and  is  oontinuAd  to  Troy  (six  milei 
further  north)  over  the  Troy  and  Greenbush  Railroad.  The  whole  lioe 
is  double  tracked,  and  has  also  26.64  miles  of  sideings  and  turnoats. 
The  rails  on  the  main  line  weigh-— iron  70  lbs.,  and  .steel  5S  lbs  to  the 
yard.  The  grades  and  alignments  of  the  line  are  much  more  favorable 
th^iu  those  of  the  Harlem  Railroad,  and  hence  its  traffic  is  more  pro6table* 
At  the  close  of  the  fiscal  year  1868  (September  30)  rolling  stock  id  ose 
consisted  of  82  locomotives  and  7  dummy  engines,  141  first  class  and 
18  second  class  passenger  ca<^,  36  baggage,  mail  and  express  cars,  and 
1,057  freight  cars.  The  following  shows  the  number  of  locomotives  and 
cars  of  each  description  from  1863  to  1868,  inclusive  : 

1968.  1864.  186S.  1886.  1867.  18«. 

Locomotive  expenses ...68  71  79  80  Si  ^ 

Passenger  (flr.'t  cla  B)  can  107  193  134  138  194  HI 

PaiPsenKer  (second class)  can 11  11  18  18  18  19 

B'ggiK*',  mail,  Ac 37  81  38  88  33  V 

Pnightcars 675  671  711  "IW  965  l.»T 

Dammy  engines —  3  8  8  6  7 


1869]  HUDSOV   RIVXR  RAILROAD.  263 

This  exhibit  does  not  include  the  citv  line  cars  which  carry  passengers 
to  and  from  the  upper  depot.  The  business  of  the  line  was  larger  in 
lS()7-68  than  in  any  previous  year,  and  the  road  and  machinery  were  in 
the  hest  condition.  The  results  are  given  in  the  following  table,  in  con- 
DectioQ  with  the  statistics  of  the  four  preceding  vears : 

1868-fi4.  1^64-f6.  18f6-6«.  1886-67.  1S67-68. 

Miles  nm  by  pan.  tr'D« 628,8«  698,2 . 6  C86.  s4'»  7  4,984  SX  15,6 .8 

**          **    Ireight    "     «i«8,863  6«8,315  (WH,^'.^  707.1  8  9b2,445 

**          *'    gmvel     "    168,696  5»,M8  tO  7H9  »ti,l8tt  8-i.l07 

Total  tr»in  miles 1,896,«94     1.816,079     1,885  801      l,r98,326     l,'7u.:80 

PiMen,'er8  es'ried 8,017,848  2,068,245  2,169.267  2,i6l»,7i^  2  6a«,808 

Mle  vt  rjiva 98,85^.821  85, '178613  92,.i<8  0v7  9l,l5!«,'»22  16,^5V^2 

T.f «  of  ir  Ighf.  carried «0i,8M  4Mi,h65  4i<7.807  681,^37  71h,-^bi 

Mile-«oflran«portatlOQ 72,720,861  6.V3^444  67,545,4H9  T8,'8T,023  88,8  »V'29 

Milesruu  t»yciryc«r« «Mi,.-Oi)  M84,7  8  25a,lS4  161.01< 

Cry  piseiue  B  carried 1,187,558  1,0»',05H  »4fi,«l()  49.(525 

?d«-^t:ot{er  eamiugs .$1,921,964  $8,0?*<,tt62  $^1  8,946  $2,0.0,801  $2.00,475 

Frei-'it           ."         2,14^801  «,:24,0;«)  2,34.Vili  2,841,253  8,'3'»,126 

Aiio.ker           •'        eS^'-iSS  128,398  oe(».9r.9  41)0,041  ft-UGli 

Total  gro9fl  caroinca $4,182,600   $4,452,8811   $4,845,5v6  $5,267,100   $6,674,215 

Operating;  expenses,  etc 2,5 ''4,183     8,138,819     8,(90,583     8,218.567     8,93,319 

Net  earnings $1,518,468  $1,813,661   $l,754,V)8-(  |2,06:),6:j8   $1,78U,896 

The  earnings,  expenses  and  profits  per  mile  of  road  in  the  same  years 
were  as  follows: 

1868-4.      1861-66.      1865-86.       1*66-67.      1867-68. 

»     .                                                                        $  t                 $  $               $ 

B«rninss  per  mile  Of  road 27,680  66  20,'82C8  82,30^61  8M14  CO  87,T51  41 

Exp*  8Ci        "               •»          17,227  68  209J5'J8  20.8  8  59  21,428  7s  26,288  79 

Pr-Jit*             "               "    10,82 <  10  8,757  07  ll.«f*9  92  13.690  22  li,87i  84 

Expeoses  to  earnings,  p.  c 62.58  70.49        68  78  61.01          88.05 

Notwithstanding  largo  amounts  have  been  paid  from  net  earninirg  for 
improvements  and  new  machinery,  and  also  for  interest,  the  business  of 
the  past  five  years  has  given  at  least  8  ner  cent  on  the  outstanding  capital 
stock.  In  1863—64  a  6  per  cent  scrip  dividend  was  also  paiJ,  hnd  in 
18C5-66  the  dividend  whs  0  per  cent.  In  the  meanwhile  thecapitHi  stock 
OQ  which  dividends  have  been  paid  has  more  than  triplic?)ted,  its  amount 
having  been  October  1,  1868,  $4,422,923,  and  St-ptember  30,  1808 
tl3,032,700.  No  general  balance  sheet  is  published.  The  following 
(Uteinent  of  capital  stock,  bonds  and  floating  debt,  and  of  the  cost  of 
railroad,  equipment  &c.,  is  an  abstract  of  th^  annual  returns  to  the  State 
Enginter  and  Surveyor,  and  refer  to  October  1,  1864-1868,  inclusive: 

1884.  1865.  19M.  1867.  1^6^ 

$  $                 $                  «  $ 

^piUlpafdln 6,918,042  6,563,250  6,96V,971  9,fl8l  5U0  38,9s'i,700 

Faodeldi!bt 7,737.6^9  7,762,-40  7,227,4*50  6,3114,550  6,074,»ti0 

irlo.aQgdebt 1,167  1,167            1,167            1167  1,16T 

Totol 18,966,889    14,8:7,257    14,191,,98    16,a77,2l7    2',(08^ 

Per  contra — Charges  on  the  following  accounts  : 

1864.     :866.     1K66.     J867.       1868* 

S  $  $  «  $ 

Jalroa^ 10,771,017    10  97i>,884    ll,0«  .888    12,R41.7<4    14.Hi9,^70 

Equipment 1,616.414  1,»>9,3  4  2,!26.«  0  2,840,404  2,5l6.«iOT 

Ji'gi  ecrlng,  stc 708,902  708,h<'2  708.902  7as,»14  7HM)14 

Wtcoant,  etc    1,670,614  1 .670  1 46  1,5':  0,51 »  1,670.6 1 4  1 ./  70,514 

Hond«,taamtfBa,etc 44,51  4347:  434:1  liKiSI 

„Tot»l 14,669,847    15.264.586    15,643,25    17,6aV87    S9.ire.989 

Con  otrojid  par  mils 101,878  94   106,004  07   107,943  23    121.662  75   li3,236  08 


S64  CHtOiaO   1.ND   ALTON   BAILROAD.  [-^P^H, 

Under  the  head  of  "DiMOunl*,  etc.,"  are  comprised  tbe  low  in  nego- 
tiating bonds  and  loann,  commisaioiia  paid,  interest  to  stockholders,  etc., 
prior  to  185S. 

The  funded  debt  outstandiQg   September  30,  1866,  was  made  up  of 

the  following  clnssea  of  bonds : 

. lotemt .          Dite  ol  Andoint 

s.      Poiloda.             HamittT.  OIlI^Una'e 

Feb.  *  Aug.       Feb.  1.  IHHfl.  |l,e  t  ail 

Feb.  1,  ISTO.  l.BW.IWJ 

Ang.  1.  1»iv.  llti.im 


Sd  "     iljiklDKtdiid... 


Id  the  following  table  we  give  the  montlily  fluctuations  of  the  Blisreg 
of  the  Hudson  Kiver  Compao}'  at  New  York  tbrongh  the  last  five 
years; 


M.nli 

tSI::;:;:;:;::-; 

";-;-::k'fr 

1' 

G 

11 

1 

iiw^aiiwji 

115^  will 

TjioisT 

H1K@1  HM 
10   ®140 

ISlJial-IT 
li^O  ©111 

iwxaijo 

IKS   &WH 

An.aet 

■:::::::^  %f^ 

hO    ©149 

Ytu 

107    ®1M 

Under  a  resolu^on  of  a  called  meeting  of  the  stockholders,  held 
November  30,  18S8,  the  capital  slock  was  increased  b;  tS.lOO.OOO, 
distributed  et  par,  pro  rata,  and  pnyflble  on  or  before  January  !0.  1609' 
This  issue  is  made  for  the  puroose  of  taking  up  certain  bonds  nnsturing  in 
1869-70. 


CHICAGO  AND  ALTON  BlILBOAD, 

The  annual  report  of  this  company  for  the  year  ending  December  31, 
1638,  has  just  been  issued.  As  aireftdy  indicated  in  the  returns  piiblislied 
each  month,  the  road  shows  a  decided  increase  in  its  earnings  over  ibu^e 
of  1667.  Tbe  gross  receipts,  not  icciuding  the  Jacksonville  Division,  exceed 
those  of  the  previous  year  about  7  j-  per  cent — the  two  yearn  compare  as 
follows,  the  Jacksonville  Division  being  included  for  the  last  seven  months 
of  1868. 

1887.  IMS.  Ine  D«C. 

FiMInEcrtnfllc t1,t{l«.IW  tliaesSTO  ISlhSID  ■      . 

FreiglitlralBc... a.«»,O0e  »,1*%6W  Mi,Sll 

V.     .  null,  aiproiw!,  *«        aM.nM  MM*8        *.'"> 

ToMlernaasiinilnei.... |S.e»S.MIl     |i,Me.Sli     |S13.T<I 

ToUl  aipeiiMI 3,148,193       3,1S3,!gt       SM.OM 

SaniliiKi IcM axpeoM*. |1.74!,7SB    .t%OU,*60    StSO^.^ST      .... 


1869]  OHIO  AGO   AND   ALTON  RAILROAD.  265 

At  the  date  of  the  last  annual  report,  the  St  Louis,  Jacksonville  and 
Chicago  Railroad  was  operated  under  a  coniract  made  with  this  coinpany, 
uuted  January  2/*,  1864,  by  which  that  road  was  entitled  to  a  pro  rata  pro- 
j:»ortioa  of  earnings  on  joint  business,  and  a  bonus  of  10  percent  upon  that 
portion  of  aoch  business  as  belonged  to  this  company. 

It  was  deemed  important  that  the  possession  of  this  line  of  road  thould 
be  rested  in  the  Chicago  and  Alton  Company,  beyond  question,  and 
permission  having  been  asked  to  lease  the  same  in  perpetuity,  and  tbe 
sartie  having  been  granted  by  the  nearly  unanimous  vote  of  the  stockhold- 
ers, the  St.  Louis,  Jacksonville  and  Chicago  Railroad,  on  the  first  day  of 
June  last  past,  practically  became  the  property  of  this  company  and  is 
DOW  operated  as  a  division  of  the  road,  under  the  immediate  control 
of  its  officers. 

The  earnings  of  that  road  have,  since  that  date,  been  included  in 
the  gross  earnings  of  this  road,  as  published'.  The  Treasurer  in  his  report 
gives  the  following  statement : 

The  eroes  joint  Miniion  on  basine^B  to  and  from  etations  <m  that  road,  for  the 

'  von  months  from  Jane  let  to  December  Slet^er  > $6^7,481  16 

Oftiiflgnm  there  waa  earned  oponihoC   A  a.  R.  K 837,  TO  6'i 

Le  riQ  Toe  proportion  earned  on  he    t.  L.,  J   AC.  R.  B $319,70108 

A<«ame  the  expenaes  at  60  per  cent $101,8-in  07 

5«vrii montha  rental 140,000  00    8^,880  97 

Which  ehowsaprobableloBi  of    $13.119  81 

tar.  n^der  the  contract  w*iich  nfovemed  pr  or  to  l»t  oTnne  1a»t,  w«^  should  have 
l<uid  'he  St.  L.,  J.   &  C.  R.  R.  i  o.  a  drawback  of  10  per  cent  apon  ihie  com- 

paQj'fl  proportloa  of  the  abo^  e  Joint  eimioga,  eqatd  to. . . .  $33,777  95 

FnmihiBdedact  the  probable  lora 12.119  84 

Asd  it  Bhoirs  that  thia  comptny  is  better  off  under  the  lea^e  than  nod  r  the  old 
contract $31,658  61 

The  report  states  that  including  tlie  earnings  of  the  Jacksonville  division 
for  seven  months,  the  aggregate  amount  exceeds  tlie  earnings  of  the 
previous  year  $615,781  49.  The  gross  earnings  of  the  main  line  amounted 
to  $4,188,941  34,  about  7f  per  cent  in  excess  of  1867. 

The  operating  expenses  amounted  to  54  0-10  per  cent  of  the  gross  earn- 
ii3gs,  as  i^inst  55  2-10  per  cent  for  the  preceding  year. 

The  number  of  passengers  transported  during  the  year  amounted  to 
608,874,  an  increase  over  the  number  carried  in  1867,  of  77,657,  or  14  3-5 
percent  Of  this  number,  574,253  were  way,  and  34,621  through;  299,« 
562  were  moved  north,  309,312  were  moved  south.  Increase  number  of 
*2y  passengers,  16  1-10  per  cenL  Of  the  whole  number  carried,  94  3  10 
p«r  cent  were  local,  and  5  7-10  per  cent  were  through.  Average  &re 
paid  by  eack  way  passenger,  tl  67  8-10. 

Not  a  single  passenger  was  killed  or  injured  during  the  year,  on  account 
of  any  defect  in  the  track  or  equipment,  or  through  the  negligence  of  the 
employees. 


266  CHICAGO   AND   ALTON   RAILROAD.  [^P^h 

Tlie  increased  tODnage  of  the  road  exceeds  that  of  1867  about  22  per 
cent.     01  4-10  of  the  tonnage  was  way;  8  6-10  of  the  tonnage  was  throngli» 

There  have  been  constructed  eight  miles  of  additional  tiaok,  between 
Wilmington  and  Braceville,  and  eight  miles  between  D^i^htand  OM, 
making  sixteen  miles  of  double  track  now  in  operaUon.  Daring  1869 
the  distance  between  Braceville  and  Dwight  will  also  be  constructed  in 
eame  manner,  thus  giving  the  toad  the  use  of  about  thirty  miles  of  contin- 
uous double  trHck. 

The  coal  traffic  continues  to  increase  in  magnitude  and  iroportAncs, 
and  every  encouragement  is  being  extended  to  aid  in  the  development  of  a 
business  which  will  contribute  largely  to  the  income  in  the  future.  In  order 
to  show  the  increase  in  this  branch  of  an  almost  entirely  new  bu(tine»  on 
the  road,  it  will  be  of  interest  to  note,  that  during  the  year  1865,  6,000 
tons  were  transported;  1866,  71,090  tons;  1867,146,050  tons;  1868, 
166,086  tons. 

A^ccorfling  to  the  statistic*  of  t^^e  Board  of  Trade,  51  per  cent  (ftbe 
whol^  amount  of  bituminous  coal  received  by  rail  at  Chicago,  during  tha 
year  ISi^iS,  came  over  this  road.  During  three  months  of  the  year  the 
mine^  that  ncuHlly  contributed  largely  to  the  business,  were  not  operated, 
on  account  of  the  miners  being  ^^  on  a  strike.**  This  fact  will  explain 
the  small  percentage  of  increase  in  the  tonnage  over  1867;  but  new 
mines  are  being  opened  contii(uous  to  your  line,  and  the  old  ones  sra 
again  being  worked,  and  a  large  increase  in  the  business  it  conBdently 
expected  during  the  present  year. 

The  earnings,  expenses,  and  profits  from  operations  fi>r  the  last  seren 
years  have  been  as  follows  : 

F'fcal  Kllesof    * SmuU  of  opermtioiii — ^ 

year.  road.  Farnings.  Ezpdoaee.  ^^"^ 

lUl S90  $1,W^,4»4  $b4«,3W  |«i.g 

1864 290  1.92ft,001  7«7,«^  * '  2J 

186S 83)  1,678,00  971,8«  ^Ug* 

184 S67  2,770,484  1,682,105  l^^'S 

1865 880  «,8«0,0W  2,006,574  h*^l 

186« 280  8,fi9615S  2,210.686  ^-^^^1 

1887 S80  8,8»8,8«l  2,M9.1i8  ^"'^'S 

1868 481  4,608,642  2,40S,18i  2,0».« 

The  net  earnings  h^ve  been  dispoded  of  in  the  last  three  years  as  shovn 
in  the  following  statement : 


1866.  188T.  ^ 

Net  eamingi $1,484,617  $1,748,788  $2,019,40 

Joliet  Achtc.  R.  lease $169,81*  $182,MT  $144,019 

Alton  A    t   L.  K.  lease 11,760  10,711 

St.  L,jHck.  AChic  B  Is 14O.O0D 

Improyemento 221,707  £63407  6%,7»6 

Interact  on  boms 280,700  277,o95  27S,9i5 

Hinhingfaudsand  tax ...      67,188  66,948  62,100    ^^^ 

Dirid  ndaand  tax 668,442-1,278,069 664,178—1,617.266 ?2»,9B4-ljS6.Mi 

Balance  to  credit $t06,66i  $226,4n  9^^ 


1869] 


CHICAGO   AND    ALTON  RAILROAD. 


267 


The  general  balance  sheets  December  31,  1865~'68,  exhibits  the  fiDan- 
ci  <1  condiiion  of  the  company  thus : 


Ctp  til  Stock,  preferred 

**  *"      common 

Bonda— Mnkfns  fund 519.000        483.0t0 

let  m  rtgage S,400.(00     M^O.OOO 


1866  1866.  1867.  1868. 

$2,4-25.675    $9,42S,^7H    $«,42%410    12,426,40) 
1.783.843      8,8S6648      8,886,672      1^141,873 


**         income 
S'DklD<?lond  bonds  cancelled 

'*       CHSh  

Brnd<«iiDd  stocks  aiil«sted... 

Cirr^il  acccionts 

Incume,  enrplns  Dec.  81 


1,100,000  1,100,000 

81,000  117,000 

87,818  VT,8i8 

86M,960  842,017 

1,291,898  1,497,966 


444,000 
2,400.(00 
1,100,0(10 

156,000 

87,813 
209,100 
9-i4,a62 


402,000 
2,400,000 
1,100,000 

198,000 

•      •  •  •  • 

87,818 
850,181 
984,667 


Total 


.110,008,224  $12,290,904  $11,688,807  $18,089,988 


Ag»insU  i^bich  the  following  charges  are  made: 


1866 

ro«t  of  road  A  eqi]ipm*B(3S0  mllea) $8,808,019 

B  n  •  and  stocks  oni'snod 87,818 

a:mi  t  St   Lo  ifl  RH.  yharea 687,700 

Rv.lrond    ond«  (fo  eign) 

r.  S   M  arit1e>,  $185.000 

K  P' wal  account,  bonds  in  tmst 

i^'■:^p  ie»  on  hand 

TciiM-r  land        , 

"^'0  k<iep  t  A  irronnds pnrcbaacd 

I' Cerent  in  palaco  sleeping  cars 

Ex  •t'  fed   to    replace     osscs  at  Bloomlnglon.. 

?'>r  depor  {TTonnds  at  Bloomington .  - . .  . 

Csrrent  acconnt-^ 

Ci^honhand,  general  ftind 


60000 

451,984 

41.268 

78,689 


1866. 
$10,118,522 

87,818 
676.r00 

24,8C0 
185,614 

60,0('0 
486,189 

•  •  •  •   •  • 

60,000 


208,964 
193,097 


166,478 
697,538 


1867.     1868. 
$10,276,604  $11,433,!S28 
87,813    87,818 

17,S00 

lo.ono 

60.000 
888,787 

•  ■   ■  •  • 

178,011 
10.000 
60,000 

466.592 

65.000 
2(),000 
78,152 
13,K00 
180,967 
524,138 

•  «  •  •  •  • 

65,000 
41,200 

•  •  V  ■  •  • 

4'».a'58 
136,r)99 
468,688 

Total $10,008,234  $12,290,904  $11,688,807  $18,089,988 

SiDce  the    re -organization  of   the   Company   in   October,   1862,   the 
following  cash  dividends  have  been  declared  and  paid : 


ai«  of  paTment. 


Pn»f. 


1- 

.«-t>triber;  :8»i3 «X 

iUrh.  lt^^4 8X 

S2  tt-mber,  1.S64 8>J 


1.S64. 
181^. 


S*-v«*mber,  I^ta ZH 

3Urch,  1869 5 

Total  in  Are  jean  and  a  half 


Com. 

6 
6 

8jtf 
5 


Date  of  paym'^nt.  Pref. 

September,  1866 6 

Marc  ,  18<*7 6 

•'September,  1867 6 

March,  1868 6 

September,  18«8 6 

Haroh,  1869 6 


.54 


Com. 
6 
6 
6 
5 
6 
6 


The  monthly  range  of  prices  for  the  stocks  of  this  Company  in  the  New 
York  market,  for  the  last  three  years,  is  sLown  in  the  table  which 
follows : 


1866. 

Jsmary 106  ^!0Sfl 

February .102  @119 

5Iiy 

J^iy 

AttLll^t.. 

^eptem 

O-t  ber   

Nov.  m i('8' 

D«  em 108 


-Common  Stock.- 


1867. 

105  (^1101 

106  (^111 

105  ®107 

107  @ir8 
109  (S^114| 
114  ©116 
111  ^117 
117^126 
128  ©125 
120  ©122 
12!l«»180» 


1868. 
180  ©136 

128  ©136 
129|©l:^l 
12>©128i 
127i©128 

129  ©138 
137  ©ISS 
136  ©144 
141  ©inSt 
150  ©15^* 
134  ©151 
140  ©147 


1866. 

105  ©107 
108  ©190 

94^©118 

98  ©  i'd 

1'0©<01 

102  ©102 

104i©106 

106  (a  1001 
106|©118( 

118  ©im 

l(t9«©*13| 
1  to*  ©111 


Preferred  Stock. 

18«17 

109  ©112 

112  ©116 

106  ©Uj9 

108  ©no 

llli©ll(i 

117  ©1«2 
114  (TrlW 
in  ©'28 
125  ©128 
125  ©US^ 
125  ©i80 


1868 

131  ©140 
188  ©18^ 

132  ©1^ 
125  ©129 
12-  ©129* 
180  ©.36 
128i©  29t 
ld8i'^145 


^cu       88  ©19     106©180i    127i©158*     93  ©IdO     106  ©180     126  ©14S 


268  GOLD   OOHTSAOTB.  ['^F^ 

60ID  CORTEACTS. 

Frederick  Bronson,  Executor  of  the  last  will  and  testament  of  Aithnr 
BroDBOD,  deceased,  PlaiDtiff  in  error,  vt,  Peter  Rodet.  In  error  totbe 
Court  of  Appeals  of  the  State  of  New  York. — Mr.  Chief  Justice  Chisi 
delivered  the  opinion  of  the  Court: 

This  case  comes  before  us  upon  a  writ  of  error  to  the  Supreme  Coait 
of  New  York. 

The  facts  shown  by  the  record  may  be  briefly  stated. 

In  December,  1851,  one  Christian  Metz  having  borrowed  of  Frederick 
Bronson,  executor  of  Arthur  Bronson  fourteen  hundre«l  dolUrii*  executed 
his  bond  for  the  repayment  to  Bronson  of  the  principal  sum  borrowed  on 
the  18th  day  of  January,  1857,  in  gold  and  silver  coin,  lawful  money  of 
the  United  States,  with  interest,  also  in  coin,  until  such  repayment,  at  the 
yearly  rate  of  seven  per  cent. 

To  secure  these  payments,  according  to  the  bond,  at  such  pUce  as 
Bronson  might  appoint,  or  in  default  of  such  appointment  at  the  Mer- 
chants' Bank  of  New  York,  Metz  executed  a  mortgage  upon  certain  real 
properly,  which  was  afterwards  conveyed  to  Rodes,  who  assumed  to  psy 
the  mortgage  debt,  and  did  in  fact  pay  the  interest  until  and  including 
the  first  day  of  January,  1864. 

Subsequently,  in  January,  1865,  there  havinc^  been  no  demand  of  psj- 
ment  nor  any  appointment  of  a  place  of  payment  by  Bronson,  Ro<ies  ten- 
dered to  him  United  States  notes  to  the  amount  of  $1,507,  a  sum  norui- 
Daily  equal  to  the  principal  and  interest  due  upon  the  bond  aod 
mortgage. 

At  that  time  one  cloUar  in  coin  was  equivalent  in  market  value  to  two 
dollars  and  a  quarter  in  United  States  notes. 

This  tender  was  lefused,  whereupon  Rodes  deposited  the  United  States 
notes  in  the  Merchants'  Bank  to  the  credit  of  Bronson,  and  filed  his  bill 
in  equity  praying  that  the  morgaged  premises  might  be  relieved  from  the 
lieu  of  the  mortgage,  and  that  Bronson  might  be  compelled  to  execat« 
and  deliver  to  him  an  acknowledgment  of  the  full  satisfaction  and  dis- 
charge of  the  morgage  debt. 

The  bill  was  dismissed  by  the  Supreme  Court  sitting  in  Erie  Countv; 
but,  on  appeal  to  the  Supreme  Court  in  geueral  term,  the  decree  of  dia* 
missal  was  reversed,  and  a  degree  was  entered  adjudging  that  the  mort- 
gage had  been  satisfied  by  the  tender,  and  directing  BronK>n  to  satisfy  tbs 
same  record ;  and  this  decree  was  affirmed  by  the  Court  of  Appeals. 

The  question  which  we  have  to  consider,  therefore,  is  this : 

Was  Bronson  bound  by  law  to  accept  from  Rodes  United  States  notes 
equal  in  nominal  amount  to  the  sum  due  him  as  full  performance  aoJ 
satisfaction  of  a  contract  which  stipulated  for  the  payment  of  that  sum  in 
gold  and  silver  coin,  lawful  money  of  the  United  States? 

It  is  not  pretended  that  any  real  payment  and  satisfaction  of  an  obligs- 
tion  to  pay  tifteeu  hundred  and  seven  coined  dollars  can  be  made  by  the 
tender  of  paper  money  worth  in  the  market  only  six  hundred  and  seventy 
coined  dollars.  The  question  is,  Does  the  law  compel  the  mcoeptance  of 
such  a  tender  for  such  a  debt  t 


I860]  GOLD   OONTRAOTS.  269 

It  is  the  appropriate  fanctioD  of  Courts  of  justice  to  enforce  contracts 
accnrdirg  to  the  lawful  intent  and  understanding  of  the  parties. 

We  must,  therefore,  inquire  what  was  the  intent  and  understanding  of 
Frederick  Bronson  and  Chriitian  Metz  when  they  entered  into  the  con* 
Inct  under  consideration  in  December,  1851. 

Ard  this  inquirj  will  be  assisted  by  reference  to  the  circumstances  under 
which  the  contract  was  made. 

BroDson  was  an  executor,  charged  as  a  trustee  with  the  administration 
of  an  estate.  Metz  was  a  borrower  from  the  estate.  It  was  the  clear 
duty  of  the  former  to  take  security  for  the  full  repayment  of  the  money 
loaned  to  the  latter. 

The  currency  of  the  country,  at  that  time,  consisted  mainly  of  the  cir- 
cnlatiDg  notes  of  State  banks,  convertible,  under  the  laws  of  the  States, 
into  coin  on  demand.  This  convertibility,  though  far  from  perfect,  together 
with  the  acts  of  Congress  which  required  the  use  of  coin  for  all  receipts 
and  disbursements  of  the  National  Government,  ensured  the  presence  of 
loine  coin  in  the  general  circulation;  but  the  business  of  the  people  was 
transacted  almost  entirely  through  the  medium  of  bank  notes.  The  State 
hanks  had  recently  emerged  from  a  condition  of  great  depreciation  and 
discredit,  the  effects  of  which  were  still  widely  felt,  and  the  recurrence  of 
a  like  condition  was  not  unreasonably  apprehended  by  many.  This 
ipprehension  was,  in  fact,  realized  by  the  general  suspension  of  coin 
payments,  which  took  place  in  1857,  shortly  after  the  bond  of  Metz  became 
due. 

It  is  not  to  be  doubted,  then,  that  it  was  to  guard  against  the  possibility 
of  loss  to  the  estate,  through  an  attempt  to  force  the  acceptance  of  a  fluc- 
tuating and  perhaps  irredeemable  currency  in  payment,  that  the  express 
Hipulation  for  payment  in  gold  and  silver  coin  was  put  into  the  bond. 
There  was  no  necessity  in  law  f^r  such  a  stipulation,  for  at  that  time  no 
money,  except  of  geld  or  silver,  had  been  made  a  legal  tender  The  bond 
without  any  stipulation  to  that  effect  would  have  been  legally  payable 
only  in  coin.  The  terms  of  the  contract  must  have  been  selecteci,  there- 
fore, to  fix  definitely  the  contract  between  the  parties,  and  to  guard  against 
anj  possible  claim  that  payment,  in  the  ordinary  currency,  ought  to  be 
accepted. 

The  intent  of  the  parties  is,  therefore,  clear.  Whatever  might  be  the 
forms  or  the  fluctuations  oi  the  note  currencv,  this  contract  was  not  to  be 
affected  by  them.    It  was  to  be  paid,  at  all  events,  in  coined  lawful  money. 

We  have  just  adverted  to  the  fact  that  the  legal  obligation  of  payment 
in  coin  was  perfect  without  express  stipulation.  It  will  be  useful  to  con* 
nder  somewhat  further  the  precise  import  in  law  of  the  phrase  **  dollars 
payable  in  gold  and  silver  coin,  lawful  money  of  the  United  States. 

To  form  a  correct  judgment  on  this  point,  it  will  be  necessary  to  look 
into  the  statutes  regulating  coinage.  It  would  be  instructive,  doubtless, 
to  review  the  history  of  coinage  in  the  United  States,  and  the  succession 
of  itatates  by  which  the  weight,  purity,  forms,  and  impressions  of  the  gold 
and  silver  coins  have  been  regulated  ;  but  it  will  be  sufficient  for  our  pur- 
pose if  we  examine  three  onlv,  the  acts  of  April  2, 1792,  (1  U.  S.  St, 
246,)  of  January  18,  1837,  (5  U.  S.  St,  136,)  and  March  8,  1849,  (U.  S. 
St.,  397.) 

The  act   of  1792  established  a  mint  for  the  purpose  of  a  National 


870  aOLD   GOVTRAOTB.  [4P^ 

coinage.  It  was  ihe  result  of  very  careful  and  thorough  invesligatioos  of 
the  whole  subject,  in  which  Jefferson  and  Hamilton  took  the  greiitat 
)>arU ;  and  its  general  principles  have  controlled  all  subsequent  kgiiU- 
tion.  It  provided  that  the  gold  of  coinage,  or  standard  gold,  should 
consist  of  eleven  parts  6ne  and  one  part  alloy,  which  alloy  was  to  be  of 
silver  and  copper  in  convenient  proportions,  not  exceeding  one-half  silver, 
and  that  the  silver  of  coinage  should  consist  of  fourteen  hundred  snd 
eighty-6ve  parts  fine,  and  one  hundred  and  seventy- nine  parts  of  an  alloy 
wholly  of  copper. 

The  same  act  established  the  dollar  as  the  money  unit,  and  required 
that  it  should  contain  four  hundred  and  sixteen  grains  of  standard  silver. 
It  provided  further  for  the  coinage  of  half  dollars,  quarter  dollarN  dimes 
and  half  dimes,  alto  of  standard  silver,  and  weighing  respecLively  a  htlf, 
a  quarter,  a  tetith,  and  a  twentieth  of  the  weight  of  a  dollar.  Provision 
was  also  made  for  a  gold  coinage,  consisting  of  eagles,  half  eagles,  sod 
quarter  eagles,  containing,  respectively,  two  hundred  and  ninety,  one 
hundred  and  thirty  five,  and  sixty-seven  and  a  half  grains  of  standard 
gold,  and  being  of  the  value,  respectively,  of  ten  dollars,  five  dollars,  and 
two  and  a  half  dollars. 

These  coins  were  made  a  lawful  tender  in  all  payments  according  to 
their  respective  weights  of  silver  or  gold ;  if  of  full  weight,  at  their 
declared  values,  and  if  of  less,  at  proportional  values.  And  its  re|>ulution 
as  to  tender  remained  in  full  force  until  1837. 

The  rule  prescribing  the  composition  to  alloy  has  never  been  changed ; 
but  the  proportion  of  alloy  to  fine  gold  and  silver,  and  the  absolute  weight 
of  coins,  have  undergone  some  alteration,  partly  with  a  view  to  the  better 
adjustment  of  the  gold  and  silver  circulations  to  each  other,  and  partly  for 
the  convenience  of  commerce. 

The  only  change  of  suflScient  importance  to  require  notice  was  that 
made  by  the  act  of  1837.  (5  U.  S.  St.,  137.)  That  act  directed  that 
standard  gold,  and  standard  silver  also,  should  thenceforth  con&ist  of 
nine  parts  pure  and  one  part  alloy ;  that  the  weight  of  standard  gold  in 
the  eagle  should  be  two  hundred  and  fifty  eight  grains,  and  in  the  half 
eagle  and  quarter  eagle,  respectively,  one-half  and  one-quarter  of  tbit 
weight  precisely ;  and  that  the  weight  of  standard  silver  should  be  in  the 
dollar  tour  hundred  twelve  and  a  half  grains,  and  in  the  half  dollar, 
quarter  dollar,  dimes,  and  half  dimes,  exactly  one-half,  one-quarter,  one- 
tenth,  and  one-twentieth  of  that  weight. 

The  act  of  1849  (9  U.S.  St.,  397)  authorized  the  coinage  of  gold 
double-eagles  and  gold  dollars  conformably  in  all  respects  to  tbe  esub- 
lished  standards,  and.  therefore,  of  the  weights  respectively  of  Qve  hun- 
dred and  sixteen  grains  and  twenty-five  and  eight-tenths  of  a  grain. 

The  methods  and  machinery  of  coinage  had  been  so  improved  before 
tbe  act  of  1837  was  passed,  that  unavoidable  deviations  from  the  pre- 
scribed weight  became  almost  inapppreciable ;  and  tbe  most  stringent 
regulations  were  enforced  to  secure  the  utmost  attainable  exactness,  both 
in  weight  and  purity  of  metal. 

In  single  coins  the  greatest  deviation  tolerated  in  the  gold  coins  was 
half  a  grain  in  the  double-eagle,  eagle,  or  half  eagle,  and  a  quarter  of  s 
grain  in  the  quarter  eagle  or  gold  dollar;  (19  U.  S.  St.,  398)  and  in  the 
silver  coins,  a  grain  and  a  half  in  the  dollar  and  half  dollar,  and  a  grain 


1869]  OOLD   OOHTRAOTS,  371 

in  the  qunrler  dolUr,  and  balf  a  grain  in  the  dime  and   lialf  diaia.     (16 
17.  S.  St..  137.) 

Id  1849  the  limit  of  deviation  ia  weighing  large  numbers  of  Uiiiiis  on 
delivery  bj  the  cbief  coiner  to  the  Treasurer  and  by  the  Trensurer  to 
i]«po»itors  was  still  farther  narrowed. 

Wiib  tbeoe  and  other  preoautioas  Rgaitist  the  emission  of  any  |)iecd  in- 
ferior io  weight  or  parity  to  the  preaoribed  standard,  it  was  thimglit  sitfe 
(o  make  the  gold  and  silver  coina  o(  the  United  St^ttes  legal  tenJrr  ii  hII 
pumenb  according  to  their  nominal  or  declared  values.  Thi^  was  done 
by  the  aot  of  1837.  Some  regulations  as  to  the  lender,  for  small  loans, 
of  coins  o(  less  weight  end  purity  have  been  made;  but  no  other  provi- 
lioEs  than  that  made  in  1837,  making  coined  money  a  legal  tender  in  all 
payments,  now  exists  upon  the  statute  books. 

The  design  of  all  this  minuteness  and  strictness  in  the  regulation  of 
coiDsge  is  easily  seen.  It  indicates  the  intention  of  the  Legislature  to 
give  a  tare  gOHrantee  to  the  people  that  the  coins  made  current  in  pay- 
[□eiiis  contain  the  precise  weight  of  gold  or  silver  of  the  precise  de;;;ree 
of  purity  declared  by  the  statute.  It  recognizes  the  fact,  ai:cepted  by  all 
men  throughout  the  world,  that  value  is  inherent  in  the  precious  metals  ; 
ihatgold  and  silver  are  in  themselves  values,  and  being  aucb,  and  being 
iQ  other  respects  best  adapted  to  i he  purpose,  are  the  only  proper  meas- 
ures of  vslue;  that  those  values  are  determined  by  weight  and  purity ; 
ind  that  form  and  impress  are  simply  certiScates  of  value,  worthy  of  abso- 
lute reliance  only  because  of  the  known  integrity  and  good  faith  of  tlie 
<iocemment  which  gives  them. 

Tiie  propoeitions  just  stated  are  believed  to  be  i  neon  (eatable.  If  they 
ve  so  in  fact,  the  inquiry  concerning  the  le^al  import  of  the  phrase 
"dollars  payable  in  gold  and  silver  coin,  laniul  money  of  the  United 
SiaUs,"  may  be  answered  without  much  difficulty.  Every  such  dollar  is 
a  piece  of  gold  or  silver,  certified  to  be  of  a  certain  weight  and  purity,  by 
ibe  form  and  impreaa  given  to  it  at  the  mint  of  the  United  States,  and 
therefore  declared  to  be  legal  tender  in  payments.  Any  number  of  such 
<iullars  is  the  number  of  grains  of  standard  gold  or  silver  in  one  dollar 
multiplied  by  the  given  number. 

Payment  of  money  is  delivery  by  the  debtor  to  the  creditor  of  the 
BinouDt  due.  A  contract  to  pay  a  certain  number  of  dollars  in  gold  or 
ulver  coins  is  therefore,  in  legal  import,  nothing  else  than  an  agreement 
le  deliver  a  certain  weight  of  standard  gold,  to  bo  ascertained  by  a  count 
of  coins,  each  of  which  is  certitied  to  con-ain  a  definite  proportion  of  that 
'tight.  It  is  not  ilistinguisliable,  as  we  think,  in  principle,  from  a  con- 
tract to  deliver  an  equal  weight  of  Imllioii  of  equal  fineness.  It  is  dis- 
tinguishable, in  circumstance  only,  by  the  fact  that  tlia  sufficiency  of  the 
tnoant  lo  be  tendered  in  payment  must  be  asceriaincil,  in  the  case  of 
bullion,  by  assay  and  the  scale-',  while  in  the  case  of  coin  it  may  t>e  ascer- 
tained by  count, 

intended  by  the  provision  of  the  cur- 
eilher  cooiracl  by  the  tender  of  depre- 
equivalent  only  in  nominal  amount  to 
tiie  coined  dollars.  Our  conclusion, 
e  is,  that  the  bond  under  consideration 
at  it  was  in  the  understanding  of  the 


272  GOLD  CONTRAOTC.  L4F^i 

• 

parties — a  valid  obligation  to  be  B^tisfied  by  a  tender  of  actual  payment 
according  to  its  terms,  and  not  bv  an  offer  of  mere  nominal  payment.  Its 
intent  was  that  the  debtor  should  deliver  to  the  creditor  a  oeiiain  weight 
of  gold  and  siWer  of  a  certain  fineness,  ascertainable  by  count  of  coins 
made  legal  tender  by  statute ;  and  this  intent  was  lawful. 

Arguments  and  illustrations  of  much  force  and  value  in  support  of  this 
conclusion  might  be  drawn  from  the  possible  case  of  the  repeal  of  tbe 
legal  tender  laws  relating  to  coin  and  the  conseouent  reduction  of  coined 
money  to  the  lej^al  condition  of  bullion,  and  also  from  the  actual  condi- 
tion of  partial  demonetization  to  which  gold  and  silver  money  was 
reduced  by  the  introduction  into  circulation  of  the  United  States  Dot«fi 
and  national  bank  currency ;  but  we  think  it  unnecessary  to  pursue  this 
branch  of  the  discussion  further. 

Nor  do  we  think  it  neceraary  now  to  examine  the  question  whether  the 
clauses  of  the  currency  acts  making  the  United  States  a  legal  tender  sre 
warranted  by  the  Consiitution. 

But  we  will  proceed  to  enquire  whether  upon  the  assumption  that  those 
clauses  are  so  warranted,  and  upon  the  further  assumption  that  engage- 
ments to  pay  coined  dollars  may  be  regarded  as  ordinary  contracts  to  pay 
money  rather  than  as  contract*^  to  deliver  certain  weights  of  standard  gold, 
it  can  be  maintained  that  a  contract  to  pay  coined  money  may  be  satisfied 
by  a  tender  of  United  States  notes. 

Is  iLis  a  performance  of  the  contract  within  the  true  intent  of  the  acts! 

It  ntust  be  observed  that  the  laws  for  the  coinage  of  gold  and  silver  hs^e 
never  been  repealed  or  raodiBed.  They  remain  on  the  statute  booc  in 
full  force.  And  the  emission  of  gold  and  silver  coins  from  the  mint  con- 
tinues; the  actual  coinage  during  the  last  fiscal  year  having  exceeded, 
rccui'diug  to  tbe  report  of  the  director  of  the  mint,  nineteen  millions  ot 
dollars. 

Nor  have  those  provisions  of  law  which  make  these  coins  a  legal  tender 
in  all  payments  been  repealed  or  modified. 

It  follows  that  there  were  two  descriptions  of  money  in  use  at  the  time 
the  tender  under  consideration  was  made,  both  authorised  by  law,  and 
both  made  legal  tender  in  payments.  The  s^tatute  denominations  of  both 
descriptions  was  dollars;  but  they  were  essentially  unlike  in  nature.  Tbe 
coined  dollar  was,  as  we  have  said,  a  piece  of  gold  or  silver  of  a  presrribd 
degree  of  purity,  weighing  a  prescribed  number  of  grains.  The  note  dollar 
was  a  promise  to  pay  a  coined  dollar ;  but  it  was  not  a  promise  to  pay  on 
demand  or  at  any  fixed  time,  nor  was  it  in  fact,  convertible  into  a  coined 
dollar.  It  was  impossible,  in  the  nature  of  things,  that  these  two  dollars 
should  be  the  actual  equivalents  of  each  other,  nor  was  there  anything  in 
the  currency  acu  purporting  to  make  them  such.  How  far  they  were,  at 
that  time,  from  being  actual  equivalents  has  been  already  stated. 

If,  then,  no  express  provinon  to  the  contrary  be  found,  in  the  acts  of 
Congress,  it  is  a  just  if  not  a  necessary  inference,  from  the  fact  that  both 
descriptions  of  money  were  issued  by  the  same  government,  that  contracta 
to  pay  in  either  were  equally  sanctioned  by  law.  It  is,  indeed,  difficalt  to 
see  how  any  question  can  be  made  on  this  point.  Doubt  concerning  it 
can  only  spring  from  that  contusion  of  ideas  which  always  attends  the  in* 
troduction  of  varying  and  uncertain  measures  of  value  into  circulation  u 
money. 


ISBB]  GOLD  OOSXaiOTB.  iti 

Tb«  Mvenl  sUtntea  relatiag  to  mooej  and  left*!  tender  must  be  coa- 
ttnied  togetber.  Let  it  ba  anpposed,  Ihao,  that  th«  statutes  proTidiDgfor 
tbe  eoinaga  of  gold  and  aiWer  dollara  are  foatid  among  tbe  sUlutea  of  tb« 
ume  CoDgreM  which  enacted  tbe  taws  for  the  fabrication  ami  issue  of 
note  dollars,  and  that  the  coinage  and  not«  actH,  respectively,  mslce  coined 
dollsn  and  note  dollars  legal  tenderin  all  pajmenta,  as  they  nclually  do. 
Coined  dollars  an  now  worth  more  than  note  dollars ;  but  it  ie  not 
imponible  that  note  dollars,  actually  convertible  into  coin  at  the  chief  com- 
meivial  centres;  receivable  everywhere,  for  all  public  dues;  and  made, 
moreover,  a  1^^  tender,  everywhere,  for  all  debts  may  become,  at  some 
poinls,  worth  more  than  coined  dollaTS.  What  reason  can  be  assigned 
DQW  for  saying  that  a  contract  to  pay  coined  dollars  must  be  satisfied  by 
tlis  tender  of  an  equal  number  of  note  dollars  which  will  not  be  equally 
Til)<l  then,  for  saying  that  a  contract  to  pay  note  dollars  must  be  salisSed 
by  the  lender  of  an  equal  number  of  coined  dollars  I 

It  is  not  easy  to  tee  bow  difficulties  of  this  sort  can  be  avoided,  except 
bj  the  admiuion  that  tbe  tender  must  be  according  to  the  terms  of  the 
MDlract. 

Bat  we  are  not  left  to  gather  tbe  intent  of  these  cairency  acts  from 
mere  comparison  with  the  coiuege  acta.  The  currency  acts  themselves 
provide  for  payments  in  coin.  Duties  on  imports  must  be  paid  in  coin, 
andiDtsrest  on  the  public  debt,  iu  the  absence  of  other  express  provisions, 
mustslso  be  paid  in  coin.  And  it  bardly  requires  argument  to  prove  that 
these  positive  requirements  cannot  be  fulfilled  if  contracts  between  indi- 
tidusls  to  pay  coin  dollars  can  be  satisfied  by  oQert  to  pay  their  nominal 
eqninlent  in  note  dollars,  Tbe  mercbant  who  is  to  pay  dutias  in  coin  must 
eoDtract  for  the  coin  which  he  requires ;  the  bank  which  receives  the  coin  on 
deposit  contracta  to  repay  coin  on  demand ;  the  messenger  who  is  sent  to 
the  bank  or  tbe  custom-house  contracta  to  pay  or  deliver  tbe  coin  accord- 
ing to  hit  instructiona.  These  are  all  contracts,  either  expressed  or  implied, 
to  pay  coin.  Is  it  not  plain  that  dnties  cannot  be  paid  in  coin  if  these 
caDUacta  cannot  be  enforced! 

An  instructive  illustration  may  be  derived  from  an olher.pro vision  of  the 
isme  acts.  It  is  expressly  provided  that  all  dues  lo  tbe  government, 
^iceplfor  tluiies  on  iiri>orm,  may  be  paid  in  "United  Slates  notes.  If,  tl.en, 
t':i':  government,  needing  mori:  coin  than  cflu  be  collected  from  duties,  con- 
\UKli  wllh  some  bank  or  individual  for  tbe  needed  amount,  to  be  paid  at 
n  Ctrlsin  day,  can  tliia  cotitract  for  coin  be  performed  by  the  tender  of  an 
e<)ust  amount  in  note  dollars  I  Assuredly  it  may  if  the  note  dollars  are 
ii«gal  tender  to  the  government  for  all  dues  except  duties  on  imports. 
And  jet  a  construction  wi.iuh  will  support  tuch  a  tender  will  defeat  a 
^etv  iaiDOitant  intent  of  the  acL 

ictive,  may  be  found  in  the  conlractt 
of  bullion  at  tbe  mint  to  pay  them 
osits  in  ooin.  These  are  demands 
1  for  interest  on  the  public  debt;  and 
w  United  States  notes  payable  for  all 
cept  such  interest.  But  can  any  tuch 
i  t  Can  judicial  sanction  be  giren  to 
may  discharge  its  obligation  to  the 
them  a  numb«r  of  note  dollars  equal 


S7i  GOLD  OOHTRAOTS.  L4P^9 

to  the  cumber  of  gold  or  silver  dollars  which  it  has  contracted  bj  law  to 
pay! 

But  we  need  not  pursue  the  subject  further.  Itseenw  tousdearbejoDd 
controyersy  that  the  act  muBt  recei?e  the  reasonable  construction,  not  only 
warranted,  but  required  by  the  comparison  of  its  provisions  with  the  pro- 
visions  of  other  acts,  and  with  each  other ;  and  that  upon  such  reasonable 
construction  it  musi  be  held  to  sustain  the  proposition  that  express  eon* 
tracts  to  pay  coined  dollam,  can  only  be  satisfied  by  the  payment  of 
coined  dollars.  They  are  not  ''debts"  which  may  be  aatiafied  by  the 
tender  of  United  States  notes. 

It  follows  that  the  tender  under  consideration  was  not  anfficient  in  law, 
and  that  the  decree  directing  satisfaction  of  the  mortgage  was  erroaeooi. 

Some  difficulty  has  been  felt  in  regard  to  the  judgments  proper  to  be 
entered  upon  contracts  for  the  payment  of  coin.  The  difi&culty  arises 
from  the  supposition  that  damages  can  be  assessed  only  in  one  description 
of  money.  But  the  act  of  1702  provides  *^the  money  of  account  of  the 
United  States  shall  be  eipressed  in  dollars,  dirnes,  centa  and  mills,  and 
that  all  accounts  in  the  public  offices,  and  all  proceedings  in  the  courts  of 
the  United  States  shall  be  kept  and  had  in  conformity  to  these  reeiils- 
lions." 

This  regulaiion  is  part  of  the  first  coinage  act,  and  doubtless  has  refer- 
ence to  the  coins  provided  for  by  it.  But  it  is  a  general  regulation  and 
relates  to  all  accounts  and  all  judicial  proceedings.  When,  therefore, 
two  descriptions  of  money  are  sanctioned  by  law,  both  expressed  in  dollan 
and  both  made  current  in  payments,  it  is  neces:»ary  in  order  to  avoid 
ambiguity  and  prevent  a  failure  of  justice,  to  regard  this  regulation  « 
applicable  alike  to  both.  When,  therefore,  contracts  made  payable  in 
eoin  are  sued  upon,  judgments  may  be  entered  for  coined  dollars  «n<1 
parts  oi  dollars;  and  when  contracts  have  been  made  payable  in  dollH» 
generally,  without  specifying  in  what  description  of  currency  payment  ii 
to  be  made,  judgments  may  be  entered  generally,  without  such  specilica- 
tion. 

We  have  already  adopted  this  rule  as  to  judgments  for  duties  bj 
affirming  a  judgment  of  the  Circuit  Court  for  the  District  of  California 
(Cheang  Eee  V8  U.  S.,  8  Wall,  320),  in  favor  of  the  United  Sutes,  for 
thirteen  hundred  and  eighty-eight  dollars  and  ten  cents,  payable  in 
gold  and  silver  coin,  and  judgments  for  express  contracts  between  indi- 
viduals for  the  payment  of  coiu  may  be  entered  in  like  manner. 

It  results  that  the  decree  of  the  Court  of  Appeals  of  New  York  roust  be 
reversed,  and  the  cause  remanded  to  that  Court  for  forlher  proceedings. 

Mr.  Justice  Davis  concurring  in  the  resalt,  said : 

I  assent  to  the  result  which  a  majority  of  the  Court  have  arrived  at, 
that  an  express  contract  to  pav  coin  of  the  United  States,  made  before  the 
Act  ot  February  25, 1862,  commonly  called  the  Legal-Tender  Act,  is  not 
within  the  clause  of  that  Act  which  makes  treasury  notes  a  legal  tender  in 
payments  of  debts ;  but  I  think  it  proper  to  guard  against  all  possibilitr 
of  misapprehension  by  stating  that  if  there  beany  reasoning  in  the  opinion 
of  the  majority  which  can  be  applicable  to  any  other  class  of  oontiaelBi  it 
doea  not  receive  my  assent 


1869]  OOIO  OOIVTRAOTB,  2l$ 

Mr.  Justice  Swayne  said :   .-'^ 

I  coDcar  ia  the  eoDcIusion  announced  by  the  Chief-Justice. 

My  opinion  proceeds  entirely  upon  the  language  of  the  contract  and  the 
cooBtruction  of  the  statutes. 

The  question  of  the  constitutional  power  of  Congress,  in  my  judgment, 
does  not  arise  in  the  case. 

An  opinion  was  also  delivered  in  the  Supreme  Court  of  the  United 
States,  March  1,  sustaining  the  gold  contract  case  from  Maryland,  on  the 
same  principle  as  that  invol?ed  in  the  case  of  Bronson  against  Rodes. 
Chief  Justice  Chase  delivered  the  opinion  of  the  Court.  The  case  was 
Thomas  C.  Butler  V8»  Benjamin  J.  Horwitz — in  error  to  the  Court  of 
Common  Pleas  for  the  State  of  Maryland,  and  the  following  is  a  careful 
report  of  the  opinion : 

Chief  Ju&tice  Chase  said :  The  principles  which  determine  the  case  of 
Bronson  vs.  liodes  will  go?ern  our  judgment  in  this  case.  The  record 
shows  a  suit  for  breach  of  the  covunant  for  payment  of  rent  in  a  lease  of 
certain  premises  to  the  City  of  Baltimore,  made  in  1701  for  09  years, 
renewable  forever,  upon  an  annual  rent  of  'fifteen  pounds  current  money  of 
Maryland,  payable  in  English  golden  guineas,  weighing  five  pennyweights 
and  six  grains,  at  thirty-five  shillings  each,  and  this  gold  and  silver  at 
their  present  weight  and  rate  established  by  Act  of  Assembly.  The 
obvious  intent  of  the  contract  was  to  secure  payment  of  a  certain  rent  in 
gold  and  silver,  and  thereby  to  avoid  the  fluctuations  to  which  the 
currency  of  the  country,  in  the  days  which  preceded  and  followed  the 
establishment  of  our  independence,  had  been  subject ;  and,  also,  all  iuture 
fluctuations  incident  to  arbitrary  or  uncertain  measures  of  value,  whether 
introduced  by  law  or  usage.  It  was  argued  in  the  Court  below  that  the 
rent  due  upon  the  lease  reduced  to  current  gold  and  silver  coin  was,  on 
the  1st  of  January,  1866,  $40,  and  judgment  was  rendered  on  the  27th 
of  June,  1866,  for  $50  17.  This  judgment  was  rendered  as  the  legal 
result  of  two  propositions, — first,  that  the  covenant  in  the  lease  required  the 
delivery  of  a  certain  amount  of  gold  and  silver  in  payment  of  rent;  and, 
second,  that  damages  for  non-performance  must  be  assessed  in  the  legal- 
tender  currency.  The  first  of  these  propositions  is,  in  our  judgmeni, 
correct ;  the  second  is,  we  think,  erroneous.  It  is  not  necessary  to  go  ni 
length  into  the  grounda  of  this  conclusion.  We  will  only  state  briefly 
the  general  p'lopositions  on  which  it  rests,  most  of  which  has  been  stated 
more  fully  in  Bronson  vs.  Rodes.  A  contract  to  pay  a  certain  sum  in 
gold  and  silver  coin  is  in  substance  and  legal  eflfect  a  contract  to  deliver 
a  certain  weight  of  gold  and  silver  of  a  certain  fineness  to  be  ascertained 
by  count.  Damages  for  non- performance  of  a  contract  may  be  recovered 
at  law  as  for  non-performance  of  a  contract  to  deliver  bullion  or  other 
commodity,  but  whether  the  contract  be  for  delivery  or  payment  of  coin 
or  bullion  or  other  property,*  damages  for  non-performance  must  be 
assessed  in  lawful  money,  that  is  to  say,  in  money  declared  to  be  legal- 
tender  in  payment  by  a  law  made  in  pursuance' of  the  Constitution  of  the 
United  States.  It  was  not  necessary  in  the  case  of  Bronson  vs.  Rodes, 
nor  is  it  necessary  now  to  decide  the  question  whether  the  acts  making 


fYO  BXKATOR  SPRAQUX'b  IVXW  FXKAHCIAL  SeBKllK.  \Alfii^ 

United  States  notes  legal-tender  are  warranted  by  the  Constitution.  We 
express  no  opinion  on  that  point,  but  assume,  for  the  present,  the  consti- 
tntionality  of  those  acts.  Proceeding  upon  this  assumption,  we  find  two 
descripiions  of  lawful  money  in  use  under  the  acts  of  Congress,  in  either 
of  which  damages  for  non-performance  of  contracts,  whether  made  hefors 
or  since  the  passage  of  the  Currency  acts,  may  be  properly  assessed  io  the 
absence  of  any  diflSsrent  understanding  or  agreement  between  parties. 
But  the  obvious  intent  in  contracts  for  payment  in  coin  to  guard  a<i;sinst 
fluctuations  in  the  medium  of  payment  warrants  the  inference  that  it  wta 
the  understanding  of  the  parties  that  such  contracts  should  be  sntisfied, 
whether  before  or  after  the  judgment,  only  by  tender  of  coin ;  while 
the  absence  of  any  express  stipulation  as  to  description  in  contracts  for 
payment  of  money,  generally  warrants  the  opposite  inference  of  an  under 
standing  between  parties  that  such  contracts  may  be  satisfied  before  or 
after  judgment  by  the  tender  of  any  lawful  money.  This  inference  ss  to 
contracts  made  prior  to  the  passage  of  the  acts  making  United  8tstei 
notes  legal-tender  is  strengthened  by  the  consideration  that  those  acts  not 
only  do  not  prohibit,  but  by  strong  implication  sanction  contracts  since 
their  passage  for  the  payment  or  delivery  of  coin ;  and  consequentlji 
taken  in  connection  with  the  provision  of  the  act  of  1792,  concerning 
money  of  account,  require  the  damages  upon  such  contracts  to  be  assessed 
in  coin  and  judgment  rendered  accordingly ;  leaving  the  assessment  of 
damages  for  breach  of  other  contracts  to  be  made  and  judgment 
rendered  in  lawful  money.  It  would  be  unreasonable  to  suppose 
that  the  Legislature  intended  a  different  rule,  as  to  contracts  pria 
to  the  enactment  of  the  Currency  laws,  from  that  sanctioned  by 
them  in  respect  to  contracts  since.  We  are  of  opinion,  therefore,  that 
assessments  of  damages,  whether  iu  coin  or  lawful  money,  severally,  that 
judgments  upon  such  assesments  should  be  in  conformity  to  the  stipulstioo 
of  contracts  in  regard  to  the  medium  of  payment.  It  follows  then,  that  in 
the  case  before  us,  the  judgment  was  erroneously  entered.  The  damages 
should  be  assessed  at  the  sum  agreed  to  bo  due,  with  the  interest  in  gold 
and  silver  coin,  and  judgment  fur  the  amount  with  costd.  Tne  judgment 
of  the  Court  of  Common  Pleas  must,  therefore,  be  reversed,  and  the  cause 
remanded  for  further  proceedings. 

Mr.  Justice  Miller  dissented,  for  reasons  given  by  him,  in  Bronson  vu 
Rodei. 


I 


8BNAT0B  SPRAGDE'S  NEW  FINANCIAL  SCHEIE. 

The  past  month  Mr.  Sprague  made  several  of  his  characteiistiv' 
speeches  in  the  Senate,  on  the  bill  introduced  by  him  a  few  days  fg^ 
authorizing  the  loaning  of  the  public  money  to  industrious  needy  persoos 
on  competent  security  and  at  a  low  rate  of  interest.  His  scheioei 
partly  from  its  novelty  and  partly  from  other  obvious  causes,  has  not 
found  much  favor  either  in  or  out  of  Congress.  As  the  bill  has  not 
been  printed  ia  full  in  any  of  our  leading  newspapers,  we  propose  to  give 


1SSI]  BMATOR  bfrioub's  kkw  finahoul  wnzm,  S?7 

toma  M:oant  of  ila  chief  provisioDs,  which  are  these :  Fint  it  appolnb 
I  Mw  a-id  very  powerful  board  of  officialB,  as  a  United  States  Council 
of  Fioaaoe.  The  functioDs  of  thie  board  are  "  to  loan  doilj,  01  proper 
Kcoritr,  monej  of  the  United  States  in  excess  of  a  Wauce  of  seveDtj-fim 
miUjooa  ofcoin."  Another  function  of  this  board  vould  be  to  exercise 
(ome  BUrreilianoe  over  the  iutcnial  ezchauges  of  the  country,  with 
which  view  ihey  would  be  empowered  to  determine  at  what  points  all 
dnfta  Dpon  tbe  rreosury  of  the  United  States  shall  be  paid.  A  aeoond 
point  prorided  lor  ia  Uie  bill  is  the  BUppljing  of  this  board  with  funds 
h>  be  loaned  out  to  borrowers.  These  funds  are  to  consist  chiefly  of 
ih*  r«eerTes  of  the  National  banks,  which  are  no  longer  to  be  held  by 
0.<e  bants  ihemaelves,  but  are  to  be  deposited  in  the  Kew  York 
Sub-Treasury.  The  deposits  of  country  banks  which  keep  ibtAr  reserves 
in  New  York  are  aUo  to  be  placed  in  tbe  Sub-Treasury ;  and  to  be 
mtJKt  to  tbe  control  of  tbe  new  Council  of  Finance.  Thirdly:  The  pros- 
eat  system  oFgc^d  note  issuea  is  to  be  extended  and  enlarged.  The  gold 
Dot«8  are  to  be  made  a  legal  tender,  and  the  Secretary  of  the  Treasury 
it  lo  is»ae  these  legal-tender  fold  notes  dollar  for  dollar  to  the  full 
stDount  of  all  the  coin  in  the  Treasury,  both  that  which  belongs  to  the 
Oovframeul  and  that  which  is  the  property  of  private  individuals. 

The  most  cursory  perusal  of  this  bill  will  suffice  to  show  that  ilcon- 
lains  some  extremely  impracticable  provisions.  In  the  first  place,  tbe 
propHMed  Council  of  Plnaoce  would  hitve  a  very  delicate  task  in  deciding 
"poQ  the  merits  and  claims  of  tbe  thousands  of  applications  fur  pecu- 
niary aid  which  wonid  pour  in  upon  them  from  every  State  and  city  in 
(he  Union.  Again,  il  would  be  difficult  to  avoid  the  snspiciou  of  par- 
tiality and  corruption.  Moreover,  tbe  losses  which  might  be  incurred 
would  probably  be  enormous,  and  iu  such  circumstances  tbe  Gom- 
miltee  could  not  be  expected  lo  be  wholly  exonerated  from  blame. 
Add  lo  this  tbe  certainty  that  a  great  number  of  applicants  for  govem- 
iDCDt  aid  must  of  necessity  be  disappointed,  and  it  will  be  evident  that 
tlie  pracUcal  difficulties  in  the  «ay  of  carrying  out  the  details  of  Mr. 
Spr^ue's  scheme  are  intupenible.  We  might  ui^e  the  dangers  of 
using  the   bank  reserves  in  auy  such  nay  as  this    bill   proposes,   but  we 

Were  we  to  grant,  however,  that  these  difficulties  could  be  overcome, 
d  10  work  smoothly,  still  there  is  a 
)  principle  on  which  it  restd  its 
rdted  on  the  assumption  that  it  ia 
jnd  it  to  needy  individuals  on  interesL 
ihowB  that  no  government  has  ever 
without   doing  mischief  both  to  the 


78  conoir  ow>p  statsusiit  and  OYSftLAVD  bkifhsxib.     [4p4 

public  interests  and  to  the  prirate  6rm8  with  whom  it  is  brought  ialo 
rivalry.  Besides  the  policy  is  manifestly  UDJust  that  would  take  publie, 
money,  which  is  the  property  of  the  whole  nation,  and  would  lend  thit 
money  for  the  exclusive  benefit  of  private  individuals.  For  it  must  be 
evident  that  the  government  would  be  committing  a  gross  outrage  on  the 
principles  of  equal  and  impartial  justice  to^aise  by  taxation  larger  sami 
of  money  than  are  really  needful,  in  order  that  the  surplus  may  be 
employed  in  doubtful  projects,  or  wasted  in  vain  attempts  to  benefit  the 
community  by  doing  violence  to  the  natural  laws  of  trade.  On  the 
whole  then  we  conclude  that  the  neglect  with  which  Mr.  Sprague's 
scheme  has  been  received  by  Congress  and  the  country  is  not  unde* 
seived.  And  this  for  two  reasons,  first,  because  it  is  impracticable  and 
would  work  more  of  evil  than  of  good.  Secondly,  because  it  is  founded 
on  unsound  principles,  which  in  France  and  in  England  have  often  bees 
urged  by  financial  enthusiasts,  but  have  for  a  long  time  been  rejected  bj 
competent  statesmen  and  political  economists. 


■V^tf^MVtf^lH^^^^^^^^M^^^k^^^WW^PVf^n^^^^tftaM 


[Prom  Tax  OomnBOiAL  amd  TaAXctAL  Obusioui  of  April  10.] 

COTTON  CROP  STATEHEHT  AND    OTERIAND  SHIPIENTS. 

It  has  become  more  and  more  evident  within  the  pa<^t  few  years  Ihat 
the  published  statements  of  the  cotton  crop  were  defective  in  two  import- 
ant particulars :  first  they  have  failed  to  show  the  total  crop  of  the 
country,  but  have  been  simply  statements  of  the  receipts  at  the  ports; 
and  secondly,  they  have  given  a  very  imperfect  indication  of  our  home 
consumption.  In  saying  this  we  do  not  wish  to  be  considered  as  reflect- 
ing upon  that  journal  which  for  so  many  years  furnished  the  trade  with 
its  only  useful  statistics  Mi th  regard  to  the  movement  of  cotton.  It  has 
received  great  credit  for  its  annual  record,  and  deserves  all  it  bs^ 
received.  But  when  the  Obroniolk  first  undertook  to  prepare  a  yearly 
cotton  statement,  we,  in  common  with  many  in  the  trade  and  all  ohserv* 
ing  manufacturers,  saw  these  defects,  and  endeavored  to  correct  them ; 
the  information  we  could  obtain,  however,  was  imperfect,  and  the  results 
consequently  not  all  that  we  could  wish,  although  an  acknowledged 
improvement  upon  the  past. 

The  difficulties  encountered  were  the  fruits  of  our  own  railroad  system 
which  furnishes  now  so  many  avenues  of  communication  between  the 
South  and  the  North  that  the  mills  both  at  the  North  and  South  receive 
much  of  their  cotton  direct  from  the  plantations  and  from  inland  ports. 
To  supply  the  necessary  facts  with  regard  to  these  movements,  we  endeav- 
ored to  obtain  returns  from  the  railroads  over  which  the  cotton  passes; 
but  while  a  large  number  are  always  ready  to  furnish  the  complete 
figures  so  far  as  their  lines  are  concerned,  some  roads  refused  to  make  sny 


1869]        OOTTOV  OEOV  BTATSMIVT  AKD  OVSRULVD  SHIPlBinrS.  2Y9 

retorns  at  all,  and  others  gave  them  with  too  little  detail  to  be  of  much 
086.  The  only  other  source  of  ibformatioQ  remaining  was  the  mills 
themselirtg ;  if  correct  facts  could  oe  obtained  from  them  as  to  the  year's 
consumption  and  stock .  at  the  beginning  and  close  of  the  year  a  full  crop 
statement  coald  be  furnished.  Early  last  year,  therefore,  we  made  arrange* 
menlBto  get  these  facts  from  the  mills,  but  before  we  had  completed  onr 
plans  we  learned  that  the  National  Manufeoturera  Association  were  pro- 
curing the  same  details.  Unexpected  delays  were  met  with,  so  that 
the  6gurea  were  only  in  part  receired  by  the  Association  in  time  for 
car  last  crop  statement,  and  we  were  compelled  to  depend  principally 
upon  the  railroad  returns  already  referred  to.  Since  then,  however^  the 
Association  has  finished  its  worlc,  and  we  think  with  the  help  of  their 
6gun*s  a  more  correct  idea  of  the  yield  of  the  country  last  year  can 
now  be  obtained  than  for  any  previous  season,  and  some  errors  which 
ha?e  been  made  in  other  crop  statements  can  be  readily  discovered. 
We  would '  remark  here  in  passing  that  our  annual  cotton  review  to  be 
issued  next  September  will  be  verj  complete,  as  we  have  made  arrange- 
ments to  receive  through  the  Manufacturers  Association  full  returns  of 
the  consumption  for  the  year  ending  August  1,  and  the  stock  at  that  date; 
these  fac(9,  together  with  the  railroad  figures  which  we  are  sure  to 
receive,  will  enable  ns  to  furnish  a  very  full  and  accurate  crop  state- 
ment. 

But  as  to  past  statements  it  is  not  generally  understood  that  what  is 
called  *^  the  cotton  crop  of  the  United  States"  has  in  former  times  never 
meant  the  production  of  the  country.  If  we  take  for  instance  the  annual 
statements  for  many  years  back,  it  will  be  found  that  the  total  crop  never 
equals  the  total  consumption  and  export.  The  following  figures  are  from 
the  cotton  review  of  the  J^ew  York  Shipping  LUt  for  the  years  named  : 

Arerage  per 

yew  of  5  yean,    Tear  Year  Tear 

18S6-1»01.  U65-6.  1866-7.  IbOT-B. 

Bal6<«.  Balen.  Ba  en.  balea. 

Total  crop. 8,647,964  8,164,476  1,961,088  S,480,8B8 

CoDBOf.plon  in  the  (North. :  6(>8,UU0  S4l,(kj5  B78,8li7  7M,817 

Uniie.  dUea....  fSOath. lSN78tf  167,640  S8ii,H7]|  168,848 

Tota' home  conenmption ..       68t,786       731,TI6        (»64,089       W18,165 

Kzportc  from  the  UniUd  SUtof S,«68..bl     l,664,6t)4     1,658,846     1,661,6)6 

Total  ezyortaadcananmption 8,786,067     2,886,880     2,407,884     2,610,791 

AVe  have  not  included  in  the  above  the  consumption  put  down  for 
Virginia,  which  is  made  a  separate  item,  nor  the  cotton  burnt ;  if  added 
ih«y  would  further  increase  the  discrepancy  noticed.  Of  course  a  part 
of  this  discrepancy  is  due  some  years  to  diminished  stock:)  at  the  close 
of  the  season  ;  but  the  balance  arises  from  two  facts  which  we  have 
already  not'ced : — first,  insccurate  returns  of  the  railroad  shipments 
<iirect  to  manufacturers,  and  second,  greatly  exaggerated  idess  of  Southern 


280  COTTON   CROP  8TATXMBKT   AKD   OTJIBBLAirD  BHIPMUTTB.       ['ApHl^ 

ooneuroption.  The  manufHCturers'  associatioD  is  able  to  set  u^  right  on 
aome  of  these  points,  aod  especially  with  regard  to  the  conaamplion  io 
the  South.  They  give  it  at  about  85,000  bales.  That  their  figures  are 
correct  there  can  be  do  room  for  doubt,  as  they  have  obtained  relunu  from 
alnaost  every  mill  in  the  South.  Besides,  they  receive  very  strong  con- 
firmation, while  the  above  statement  is  shown  to  be  clearly  incorrect,  is 
the  census  of  1860,  which  gave  the  total  used  by  the  Southern  mills  st 
that  time  at  about  85,000  bales,  instead  of  about  170,000  bales  ss 
above.  With  the  light  of  this  fact  let  us  now  see  what  the  totAl  crop 
statement  should  be  and  how  the  Southern  consumption  would  vary 
from  the  generally  received  estimates : 

Ayertffe  from 

ISBS-^l       lA66-6b  lfV6>7  I'VT-Sit 

Bonthem congQinption at  above... iMdes 168,786*    187,640  380,679  if^MR 

▲etoal  Southern  eoniampdon 85.000*     80,000  8t,0u0  f6a,000 

Amoimt  of  €Ror 89,786     107,610     ias,(ffil      88,MB 

The  total  actual  consumption  and  export  and   production  would  tben 
be  as  follows : 

Aetna!  Southern  eontmnptloii 86,000*      80.000      89,000    fS,MI 

Actnal  Northern  Qonanmption • 704,000*     700,0  0    860,000  11K)C,0Q0 

Total  contnmption 78,900      78^.000     881,000    9^(Kb 

Total  export  from  United  SUtea S,968,9M    1,664,664  1,668,845  1.6S1,« 

ToUl  export  and  conBnmptlon 8,743,961    3,834.664  3,8  M«6  S,6M.636 

Deduct  decrease  in  etock  dnrln^  jeir 21t,&49      4ft.0tt 

Add  increase  of  stocks 188,030      


ToUl  cotton  crop bales.  8,749,361    8,033,604  3,171,796  3,591,611 

These  figures  convey  a  very  accurate  idea  of  the  production  of  the  coun- 
try during  the  past  three  years,^  and  we  believe  they  are  the  fir^t  that 
have  been  published  since  the  war,  which  do  indicate  our  total  crop. 
Before  the  war  the  movement  overland  was  much  less  considerable; 
now  it  is  large  and  increases  year  by  year.  Bringing  forward  tben  our 
own  crop  statements,  and  making  the  additions  here  indicated  for  ship- 
ments direct  to  the  mills,  the  fuliowini;  would  be  tiie  production  and  i\ve 
course  of  the  receipts  for  three  years : 

, Year  cn<'ln|c  Sept  1. > 

IFW.  1867  1«^ 

Receipts 't  the  shlpplnjr  ports 3,341,3»       1,»'6,774       3,»40,W 

ShipmnnU  direct  to  msnniiotarer 30i.473|        125  031         fB6JSl9 

Mauolkctnred  in  tlie  Sontn 80,0Ja  83.0JO  85.0U0 

Total prodncUon 3,63^601       Je,n3,796      3,5W,0: 

The  present  year  the  overland  direct  shipments  will  show  some 
increase  on  last  season.     As  our  readers  are  aware,  we  have  already  made 


^  Per  censes  retnms. 

t  Manoflictniers*  Aaaoeiation  reiams. 

t  (>f  coarse  tbe  flfl^res  for  186V6  are  not,  strict^  speaking,  tbe  prodaet  of  tkat  Tcir,  tat 
In  part  of  the  years  daring  the  war. 

I  The  record  of  shipments  to  the  ports  daring  186V-6  w«s  for  the  earl  j  pert  of  the  yetr  terr 
tmpe'^fect  j  kept,  so  that  a  part  of  the  smonnt  pat  down  here  is  orerltna  that  >ear  in  kllpro- 
bahiiity  camtf  throngh  the  porta. 


1869]  OOMIIBBOUL    OHROKXOLB  AKD    ABTIXV.  281 

apthe  figures  to  the  fint  of  Januarj,  and  added  in  tbe  total  (198,000 
biles)  at  that  time.  We  now  Lave  figures  whi'ih  bring  down  tbe  movement 
to  the  first  of  April ;  but  as  we  have  not  as  jet  obtained  all  the  details 
we  desire  from  the  railroads,  we  omit  to  give  the  statement,  merely 
remarking  that  the  direct  shipments  have,  without  doubt,  during  the 
last  three  months  been  very  much  less  than  for  the  earlier  part  of  the 
year. 

The  foregoing  tables,  however,  furnish  a  full  statement  of  the  pro- 
duction of  cotton  in  the  conn  try  for  the  years  named  :  and  it  is  to  be 
hoped  that  in  all  future  annual  reviews,  the  total  production  will  be 
given  and  not  simply  the  receipts  at  sthe  ports.  To  call  the  latter  the 
cotton  crop  of  the  United  tates  is  to  say  the  least  a  misnomer. 

^— — ^"^^ ■  ■    ■■  ■  ■■■■■■  —    »        M    ■  ^■^^^  II  ^     ■  1     ■  I       ■   ■  I   I     ■^^^^^^^^MM  M  ■      ■■     mmmtmmm^m^^^^m^m^^m^t^^^ 

COMMERCIAL  CHRONICLE  AND  REVIEW 


XosetarT  Aflklrv— Rfites  of  Loans  und  Dirconoto— Bondu  eold  at  New  York  Stock  Szebaago 
Boird^Price  of  GoTernmeot  Secnritifs  at  New  York— Ck>arae  of  Contois  and  Aoieriean 
Been  itles  at  New  York— ( *peDSDg,  Bigbe-t,  Lowest  sad  Closing  Prices  at  the  New  York 
Btocic  Bzchange- General  Morcment  of  Coin  and  BaUion  at  New  York  •  Course  of  Qold 
St  New  York— Coarse  of  Fore  gii  Bxihange  *t  New  York. 

March  has  been  devoid  of  any  special  features  \u  fioaocial  afidiri.  Tbe  expec- 
tations of  a  return  of  money  from  tbe  ioterior  have  been  ooly  yerj  partially  rea- 
lised. For  about  two  weeks  there  has  been  a  moderate  reflux  of  curreoey  from 
New  Orleans,  and  some  slight  amoonta  bays  been  received  also  from  tbe  West 
Upon  the  whole,  however,  tie  banks  have  received  much  less  from  other  sections 
than  IS  usual  in  March.  The  West  has  been  backward  in  its  pajmeot  to  the 
East,  and  has  bought  very  sparingly  of  poods  for  t  e  spring  trade,  and  especially 
npoD  cash  terme.  The  South  has  been  a  larger  piirch  lEcr  in  our  markets  than 
it  aoy  period  within  the  last  ten  yeani,  and  it  might  have  been  reas  uably  s>ip- 
posed  th  it  a  good  n mount  of  the  currency  sent  there  in  payment  for  cotton 
would  now  begin  to  find  its  way  back.  The  non-realizUion  of  this  expectation 
h:wever,  warrants  tbe  Bupposition  that  tie  South  is  now  bujing  upon  credit 
to  a  much  larger  extent  thin  daring  Ute  years — an  a«umpt!on  which  is  coun- 
teoaDsed  by  th«>  i  proved  con6dence  felt  in  Southern  merchants  The  retintion 
orcnrrency  at  other  pe<-t*on8,  irom  ihese  causes,  has  reduced  the  loanable  rssources 
of  ibe  backs  to  an  unu^ualU  low  point.  On  the  27lh  of  March  the  legal  teiiders 
held  by  the  iiR8Mci  ttd  hankf>  anutunted  t»  only  950.f»0 0,000.  which,  before 
tbe  close  of  the  month.  wa«  farther  redaced  by  large  rcmittancei  to  PhiladeU 
pb'a  ard  other  point*.  The  change  in  the  system  of  National  Pank  state- 
ments has  not  affurded  that  r  Iti'f  from  interference  with  the  course  of  money 
sttacbed  to  the  old  mc'hod  whit  h  has  been  expected.  There  has  not  been  the 
deraniement  at  >he  cloge  ot  tie  month  growing  out  of  preparations  for  the 
statement  to  bf  n^ade  on  the  firt-t  Mond  y  of  April ,  but  the  banks,  filing  that 
ss(ateii.ent  may  be  called  for  nh "wing  their  condition  upon  any  day,  have  kept 
their  affiiirs constantly  'n  the  same  position  a.^  they  would  have  held  on  the  state* 
B^ttt  dny,  which  undoubtedly  has  bad  no  little  influence  in  checking  financial 


Har.lS. 

lUr.19. 

lla*.Sl 

— @  7 

— ^  7 

-@1 

— (gj  7 

-@  7 

-ii-y 

»'d  8 

8  @  9 

8  (i» 

8  @I0 

9  (§11 

9  (ttl2 

9  @\0 

10  @1« 

10  (912 

12  @16 

12^16 

IS  (S.5 

S82  •comnEROXAL  obronioi.x  avd  rxvikw.  [^P^ 

operafioDS.  The  withdrawal  of  money  to  adjoining  States,  in  eonnectlon  with  the 
osnal  April  eettlemeots,  has  indaocd,  at  the  close  of  tlie  month,  a  very  aethe 
condition  of  the  loan  marlcet.  ^  ail  strt^t  borrowers  were  glad  to  get  domj, 
on  stocks  or  governments,  at  7  per  cent  in  gold,  and  large  traosaetions  were  dote 
at  a  commission  of  1-16  to  ^  per  cent  additional  to  the  lawful  rate  of  iotareet 
The  larger  stock  houses,  however,  anticipating  sncb  a  cooditioo  of  aSkin^  have 
protected  themselves  by  long  loans  fanning  into  the  period  when  money  osoallj 
becomes  easy. 
T  e  fo  lowing  are  the  rates  of  Loans  and  Discoants  for  the  month  of  March: 

BATB8  or   LOANB   AND  DI8C0UNTB. 

Mar.  6. 

Oall  loana — @  7 

Loans  on  Bonds  and  Mortgage — @7 

A  1 ,  endorsed  bills,  2  moa — (3  8 

Good  endorsed  bil  la,  8A  4  mos 8  (tflO 

"                 **       aiogle  names.. . .  9  (dblO 

Lower  gradea 1^  ^  5 

In  the  stock  market  there  has  been  a  reTlval  of  specalative  activity;  bat  the 
transactiotio  have  not  been  so  large  as  in  March,  1868,  the  total  salts,  at  both 
boards,  for  the  month  having  been  1,053,055  f hares,  sgainst  I  658,577  shares 
last  year.  This  falling  off  io  transact  ions  may  be  attiibnted  to  the  fact  that. 
within  the  ye^r,  a  large  nmonnt  if  stocks  have  passed  into  t  e  hands  of  inve^t}r«t 
and  that  an  unuso  lly  liberal  proportion  of  the  stocks  on  the  market  ar^  held 
steadily  by  comhioations,  in  oonniction  with  themes  looking  to  tie  control  of 
certain  through  rentes.  The  eurnii  gs  of  the  roads  h&ving  been  Sdtisfactory, 
specalation  bos  been  charucter^zed  by  a  steady,  DOt  to  Fay  firm,  feeling  ;  which 
has  ben  little  shaken  by  anticipations  of  a  clothe  money  market  at  the  beginoiog 
of  April.  It  is  a  fact  deserving  of  note  that  the  transHctions  at  the  boards 
have  fallen  from  5,942,000  shares,  dming  the  6ret  quarter  of  1868,  to  3^97.009 
shares,  within  the  last  three  months,  a  decrease  <f  234n,00i)  share«. 

The  total   transactions  for  the  month  at  the  two  boards  have  been  1,053,055 

shares,  against  1,658,577  shares  for  the  corre  p  nding  mocth  last  year. 

Classes.  1868.  1809.  Increaae.  Dec. 

Bank  shares t.179  9,645  4M 

Ballroad   **  1,898.014  7i.9,a9J  «$.« 

Coal          *•  10U>6  1,«34  .  8.aJ 

Mining      ** 1«,0IS  7y,51d  09,504 

Improv'nt"  80,050  1(),4<0  10,« 

Telegraph"  4.\S5S  4y(M  %f»i 

Bteamahip''  S3.«i8  99,^»6  S>>0 

Expr'ssAc"  8l,S35  40,»i6            ...  40,«0 

Total— March l,668.f.Tr     1.053,055  SO^fiB 

8li.ce  JanoaiTl 6,91K,807     S,597,S6d  ....       M«^^ 

The  passdge  of  the  Public  Gredit  bill  and  the  inaugaration  of  the  new  Presi- 
dent^ which  .was  very  generally  regnr'ed  i«s  the  bf^gin  in<j  of  an  era  of  ecooomy 
and  good  luith  in  national  affjirs — huve  treen  at< ended  v  iih  a  Tt  ry  active  sptco- 
lation  in  United  States  secnrities.  1'hese  events  have  t  e  n  regarded  in  Earope 
as  just  fyiDg  a  higher  raii^e  of  values  for  onr  bonds,  and  very  large  orders  ha^ 
comequently  bten  received  fol*  the  several  'ssues  <f  Five-Twenties;  while 
foreigni  houses  here  have  also  sent  out  coi>sideratle  amounts  upon  specoltloo. 
In  this  way,  probably  not  less  than  $20,000,000  of  bonds  have  gone  to  Earope 


b^ -^ 


i8«e. 

Inc. 

Dec. 

$35,800,900 

$11,957,450 

••••••■• 

•  •  •  •  •  • 

4,701,000 

4,832,835 

•  •  ■  •     • 

3,881,176 

%  167,600 

1«05\OjO 

$11«880,0» 

$5,«*7».«76 

$ 

98,019,435 

S;i.e70.9iS 

1869]  oomnEROZAL  ohroviou  Am  bxvzbw.  S88 

doriog  March;  And  it  is  estimated  that,  at  the  doae  of  the  monthy  doae  upon 
820,(KKi,OOO  more  were  held  by  foreign  houses  io  this  city,  with  a  view  to  their 
nJtimate  sbipmeot.  The  large  amonot  of  bills  made  sgaiost  these  shipments  bO 
far  depressed  the  rates  of  exchange  as  to  check  the  export ;  and  hence  the 
largecess  of  the  amount  of  bonds  now  held  by  foreign  bankers.  The  udvanoe 
of  1  per  cent  in  the  Bank  of  Eog'and  rate  of  discoaot,  on  Thursday,  is  nnder- 
Etood  to  hare  been  indoced  yery  mnch  by  the  large  ii.flaz  ot  onr  bonds  and  the 
coDseqnent  increased  demand  for  temporary  adyances  upon  them  At  the  eloee 
of  the  month,  donestic  dealers  were  generally  light  holders  of  bonds,  and  appeared 
iochoed  to  defer  purchases  until  it  became  apparent  how  far  the  market  would 
axmpathize  with  tlie  pressure  in  money  and  how  far  the  European  markets  would 
coDtinoe  to  take  bonds.  The  extent  of  transactions  and  the  range  of  prioee, 
daring  the  month,  will  appear  from  the  following  figures : 

BOHDB  SOLD  4T  THE  V.  T.  STOCK  XXCHANOB  BOAaP. 

ClMnct.  ISftS. 

U.S.  bonds $18,483,730 

U.S.note*      4,7ii:,6U0 

bt'e&cit7b*ds .   «.65^,f500 

Campanj  |>*d« 1,113,600 

ToUI—Vareh $15,900,860 

Eiace  Janaaryl. 03,819,050 

The  daily  closing  prices  of  the  principal  Government  pecuritiee  at  the  New 
York  Stock  Exchange  Board  in  the  month  of  March,  as  represented  by  the  latest 
sale  officially  reported,  are  shown  in  the  following  statement : 

rBZOBB  or  OOTSBIIMBXT  ■WUBITUCB  AT  HTW  TOBK. 

D»70l  ^-6'P,  1881.-^, O'i,  (5-30  yrt.)  Conpon .  5'ff.lO^ 

Bomh.                                             Coup.  Keg.  1PS3.  IBM  lAhO,  new   18S7.  ISOS.jrs  C'pn. 

1 IIOS  116>i  lis  inX  115  112K  118  ...  .  lOrtJ^ 

« 115K    Il7)tf  111  115  113ii  lUH  lOOJg 

« 115«  ....  UIH  11851^  IMH  .  ...  lliM  105H 

4 115«    Ji8  llIX  n6?g  IISK  I'iH  IMX    

5 110J4  116K  119  115  lUH  i^^H  tn)i  113  105jl£ 

« lUH  nSV  11«X  113ili  IKK  ll^K  106J< 

6 llITi  118^  lUJi  116H  lt3H  ll'X  ^ii^  t05V 

^ 11«K  115X  11H3<  114)^  llOX  lt2X  naX  105« 

I^ 116        nSH  U4H  llHii  USi^  113K  106i^ 

11 1151^  115^  119)^  114^  117  liSK  UiH  lliX  105jki 

» 1173^    130  115  117>tf  118>tf  118)<  lU^    

13 11«X  115V  1"3^  113)^  mitf  •       -  105)tf 

IS IIH^     llOv^  l»)i  118  liaK  11^9^  IISSC  105X 

1*^ 117  .....  119X  116i^  117«  van  118X  106X 

" il6i^    1»0¥  ll4Ji  117K  1133^  It'J)^  11*5<     

w 110%   1*1     WiH  inK  n3H  118K   usa*  losx 

W llOjg     .  ...  119X  :i5  117  113)tf  113X  li4  lO^H 

>'• 110  118X  11<X  ll«>i  IWH  118>i  105i4 

« 116K     ll-^ii  114H  ll«^  118  ll«i^  118>^  105« 

J) 118X  1J4K  llHIi  ll8>tf  Jl»3tf  1003^ 

« IIHX  114)i  11«X  I'-^Jtf  1181^      ....  105)tf 

S 110     118X  nix  now  ii3>^  iis^^      •••  i^H 

fl (Qood  Friday). 

i* 115X  11«X  114       ll«3fc    irK  118J^  105)i 

J? 115)tf  118>i  1  3X    116X    1123i  l'8?i  -^■..  105)i 

S       U6X  118X  118K    115X    11<?<  113^  118  ^<»)i 

«1 115i^  115  lis  118«    115X    118  118  106)i 

l^^ U5H    116)^    118       1143^    115       lliji    lis"    11«X    108K 

?^^Mt 117^  iiuji  130     U5)i  118     inx  llOJi  1"     io«2 

J^wwt 115H    114X    in?tf    1'8I<    114?<    lU^    IWjtf    ll«X    lOSS 

^t- 1153^    115       118       118K    115;<    118       118       118       103^ 


OOMMUOIAL   OHROmOU  AKS  XXTIXW.  l-^l»^t 


Sita. 

S^liT 

SiS'^          ! 

£iX'-       1 

Tbe  rollowioe  table  will  tboir  tbe  opening,  highest,  lowest  aod  dosing  priea 
01  all  the  railway  and  misoellaneoiis  secorities  qooted  at  the  New  York  Suck 
BzohBDgedDriD<;  tbemootbsof  Febraarjand  Uarcb,  1869: 

I FabnuiT 1  ■ VnA 

Opto.  High,   Low.   Cloa.  Opsa.  Hlcfc,  Low.  Q 
BsDKNid  Slooli*— 

AltOB*  Terra  BkBt. 41U     41V      »         B>  n         IB         K       1 

"  "         "     E"' ••«      'S«      ««     SK  »         «         »       ' 

Boibni,  Hirtlbrd  *  Brl< »K      >3K      »K     I 

CUeuoAAlion lU       111       lU       IMX  U>       U«  IW  H 

do  do    prar lUM    MO       1B3       UT  IHV    U«]<  lU 

aila>|o,B<u1.*4Dlae]P I^       I»       :er       IK  VWi    n*H  ITI      II 

do       ANonhweM'n 84X     8«X     81         MX  SIM     i-SK     >l       ' 

do  donreT S13<      MX      *>         «%'  >t         MK     »V     < 

da      ddtockhUDd ISUM    m      IMU    IMV  1«      ISI  WK  >■ 

Co1nDb.Cblc*ln'i.  C. U         M         4&K      47  M         4i  <t!i'      4 

Clcn.  APlttabarg Ui4     M         S9X      >K  8(IW     MX     81       t 

do    ATolida 104X    lOBK    IWW    10'i(  VXM    107^  1MV  ^l^ 

da    <^al.,nD  *lDd T1         14         KX      <BX  MX      B9         H       ■ 

IM,.  Luk  *  WMUrn lldy    lIKtf    IIS       lllx  1''TX    Ultf  H'M   " 

DabnqosAHloudti lOS       lOT       l-l       lOT  lOa       IISU  107      II. 

do  do      vraf. 101       101  101      10 

Bri> W         n         S8         SS  .. 

H>r1«n 140       1«       1*1       ISt  WH    \St  Wit  " 

HuDlUl  *  at  Joupb 110       lit       IM       l»i  111       IIB  W      11 

do  do  pt«r. loix  'la     IS     110  lis     115  110    i> 

BadsODRiTcr lU       IS8k    IW       101  ISO       140X  IKX   » 

lHlnoU Centnl It*       KB       ItOX    IM  140       141  IJ      D 

JoUsl*    bltaso... W         H         W  W  H         M         M       I 

i«iiclB!ir)d ....  40         41         4i       < 

LtkeSbora IDIK    lOOK    10I»    I'SX  IW       13TW  109      W 

Hu.  AUDclii.,lit UM     IS         nw      18  M         H         tt       ■ 

'■  •'     M    ■'  e«    8x      a        8        Bx     sj;     8«  j 

Ucklna CiDlnl 11>X    110       1I1X    H^K  118       118X  1I1K  ll^ 

do       S.AN.iDd ...    Wlf      B  X      BIX      BIX  Vr         BTK      WK     ■ 

miviukegAllt.  Pial MX      Kl         04X      «  MX      TIX      *U<    ^ 

rt..  do  prat. SIX      «»      "         TdX  18X      80X     K       ! 

Morrli  A  Ihiez S         £1         ««         B-<x  Wt         84  00»      ■ 

VawJencr 1»       1«       1«X    I»«  1»       1»  i**      » 

do         0(nl-nl m       lit       110       llOX  111       111  I0»«  W 

Vow  Torh  Contnl ISI      IWX    lU      IMX  Id      IHK  lUV  » 

do         AN.B»^n.  IM       IM       118       144  . 

Korwlch  *  WoraaaUr Ba       10S         M       IDS  lOGX    ^^H  "">      ^^ 

Oil  CrS'-k  &  AlisirtiiDet IS         TO         IS         13  - 

Ohio  A  Kluluippl 88         MX      ^         HX  M         H        S>       * 

do  do         preT IS         n         "rax      18  IB         W        n       ' 

Puunit   840       W       Ni       S«  »       HI  no      g 

ntub„Ft.W.*Chlca. 1«       IM       llIX    Ml  IM       1*1M  I"      « 

Baldlur MX      MX      BIM      BIM  BIX      BIK     »       " 

BtoniDfitim.  «..««.< 


W.AUKdentb'K li'X  IIW  "IK  'lij 

iu>~<',Wib.*Wsitera »         SB         IStf      C8  08  89        «I\  f 

do        do         dopiM TM     TIX     TT         TI  "  I»        "«  S« 

Vmtis wts  mt  <w  ■■* 


leiJS]  oouHSKoUL  cttBOMOLB  iMD  xKrtnr. 


C.itnl U        a;         00        U         MM     u        ^H     u 

CimtKriud  Ca! SSX      SSJK      »        ST        S7         ST        SI         ST 

Del  Aaid  OBilCiMl i»)t    110       1>B       US       ItSM   1»       ]*T       IM 

rau)riniii(  cod lu     an     IIIV  «■ 

Sp>lT>i  MooBlalD  Co«l 10        M         BD        iO       

Wiik^BneC^ M         M        18        le 

iiiniicH'U 10      au      Ml      to 

FuilcNail iltit  IK  9TK  t<»  lOIV  lOlK  S8U  UJV 

BMiDDWiictfovar ISS  10  l^M  Itt  if  IfK  IS  IS 

Cm™ SO  eSM  M  SUM  »»«  Bt«  W  S* 

BmimriekHtT 10  W  BX       »)<  S\  SJtf  ex       BK 

MuipoH a      11K     a      i]>i    Uii    if)i    zx      IBS 

io      pKf WJi     S!«      MM     MX     11SJ(      U         SIM      MX 

dmbiKaQw KO       IHi       tGO       tsa       

»«i.DiiioiiT«ieenpb »      aa      as^    3TX    aix    tex    aov    aejv 

AdciohH.  Dnlon 38X      *>         >S        «         40X     4S         IBM     40K 

Muii        „   4BX      to         48         S4!i,'      eu         el         KB         GSX 

DallcdBUtn 4a         ta        41         KM     Si         BUfi      it        KH 

Mncltut'i  OnloD 1«M      IBM      1*W      ^K      IB         17X      U         IS 

Vdli.  FuKO  *  Co M         »<»      n         SDK      8JX      SI        W         aOX 

TIk  gold  premiam  baa  been  compare tivel;  ateadj.  1'lie  course  of  oar  foreign 
tilde  hu  indaced  tome  firoiDna  atDODg  holders;  bat  the  Urj^e  exporta  of  booda 
luTi-  De-.tralized  %aj  opwrd  teodency  ia  (hi  premium  froni  that  niiae.  HoId< 
91,  boweTer,  have  derived  aome  advanlBge,  doriog  the  l«t1er  half  ol  the  mODth, 
Croo  loana.  The  redac»l  inpply  on  the  market  baa  inablcH  them  to  oblain  blgh 
n\ea  from  specolktire  aelleii,  ibe  iatereat  at  one  lime  reaebiug  I  per  cent  per 
dij.  Tbe  goTernnieDt  bao  rorniahed  <3,698,0(J0  orcoio  io  Uik  wa;  of  iDtereat 
ptjmnits,  but  b«8  taken  cff  t'e  market  St3,241,Di>0  in  ^celptB  or  cuatoma 
iii'in,  an  iuinnia!1j  Urjn  smouot.  The  receipta  Trom  Culilbinia  have  beeo 
KE9,000  leaa  than  Id  Uarch.  1868,  bnt,  la  m  offwt,  Um  eiporta  to  foreigo  porta 
Un  been  (1  ^20^00  lesa  than  at  the  aime  period  of  laat  ;ear. 


§86  BAII^OADfl   or  HJUUAOBnSKn  AND  KIW  JBRSir. 

BipcrU  or  colD  ud  bnUloD •^BSl.mi)     tt.SS1.US      ..     . 


[JM 


udntlea B.m.«i     13,*ll. 

Total  wtthdmrn 

EicH>  or  Hltbdnwd* 

Bp«cl*lDbuiki  daLisBHd. 


.«M,1I  (W>'1   I1WIM.9TB   d-Wirt   1.,. 

,  si.isi.Tii    S9.476,ni  ti.vn.a>  |... 

.    4.141.»(       T.lI^Blt     S,aKUTl 


DsriTadfcomonnparMdwiDicM fSiBH, 

The  IbllowiDg  exhibits  the  qnoUtiont  at  New  Torh  for  buken  60  dtjt  bib 
OD  the  principal  Enroprsa  marketB  dail;  in  the  moDtb  ot  Febniar;,  1SG3  : 


iitSiiS 


» 103>j®li«X    tfiXW 

so loe  fttiosx  uiHV 

81 iiiTJii^iutj     tnh&i 


KllLBOiM  OF  NiSSAGDUSSTTS  AHD  HBW  JBKSBT. 

Tbe  statement  given  below  furniBbes  an  abstraot  in  tabulftr  form  of  all 
the  ptiacipal  items  contained  in  the  Reports  upon  Railroadi  made  to  tiit 
Legislatures  of  MassachuseLts  and  New  Jersej  respeoUvelj  ;  Ib&t  of  Mi^u- 
chuselts  is  for  tbe  yearending  November  30,  1866,  itod  of  New  Jersej 
for  the  year  ending  Ddcerober  31,  1868. 

The  report  upon  the  railroads  of  Uhio  was  given  in  the  Haoahvi 
of  February,  1869,  and  tbe  reports  of  New  York  and  PeDDBjIvaoift  will  b« 
presented  vary  soon.  These  reports,  taken  together,  furnish  a  veiy 
complete  Buramary  of  the  operations  and  financial  situation  of  'it* 
numerous  nnd  important  railroad  companies  in  the  Stales  mention^, 
and  If  a  comparisoD  with  the  previous  year  is  desired,  tbe  prin.-ipsl 
reports  for  lti07  will  be  found  in  the  Maoaeiki  of  Ma;,  186S. 


HAUUKOADB  OW   MIUAOUUBBTTB   i 


;  -.ax  :  :S  : 

i:l!:;l! 

■'ii-'i- 

^Ssl—ssl^ 

>  NEW  JSBBsr. 


;EgSS2SS2  l 


■a  ^^'a's'^s*  g'^  ■  -g  ■•* 


i^a 


S£=SSS5S 


i^"" 


-a'^ 


8  .SS  ; 


;2||  i|  i|s|l  ;||  i| 


gSSSsliSgs -ggggag 


=   -3SSSe3SrSe3Ran!5=fSSi;g8SSS32tSSSP8ES2SSK2S2?PS 


1   ^2S5S-SS3ES?SSPESS£S8S 


3SeS3     :8sSS$S8  .S38=S893   SSSS   9 


9SSS8 


8i8SSSSaaS=!g8S  ;8888gs?3g88S58SSSSSe?gS858SSS 


288 


HATLTIOADS   or  MA88ACBU8STTB  AVD  VXW  JIB8KT. 


[April, 


BSFORT   OF  THS   RAILROADS  AND  CANALS  OF  WW  JZRfiXT    FOR  TEX  Till 

BNDINO  DEO.   1868. 


Cost  of  Capital 

road  A  stock 

equipm*t.   paid  in. 

Belvidere,  Del $Ml<W»  f^}S$ 

Camden  A  Amboj n.2U,€9«  6,000,000 

New  Jerwy ^»*«1'S!  M5?»!52 

Del&RariianCann «,6t0,894  4,9a«,400 

Camden  A  Atlantic S,((»,101  1409,405 

Camd.  ABurig'nCo 710,«6«  831,5S5 

CapeMay&inUvlL 'i58,8»5  447,<0C 

Central  of  N.J 10,834,126  IS,©*-!),©!)} 

Fleminat'^'0 160,011 

Freeh^d&Jamepb'g 8^9.106  sau,M4 

Hackens'k  Ai>i.T 99,700 

L.  Branch  A  ^•ea8're S«,440  178,«« 

MilletoneAN.Biim ]U9,9i8  96,760 

Horrls  Cannl 8,40%«S4  2800,000 

Morris  AEssex 9,759,068  4b8a,600 

NorthemofN.  .; ..       6*6,fi68  369,^00 

Pembt'n  A  Bighorn 683.786  8S9,«50 

Piterson  A  Uud.  K btO.lOii  680,000 

Pater^OD  A  Hamapo 8f'0,0  0  848,000 

H.  Amboy  AWoodb V14,681  67,SU0 

RariUnADeLBay 863,000 

ralem ...       ri8,S87  180,660 

Bomb  Branch. 8(;8,804  Le  sed 

Buiflcx 4,09»,M>8  874,400 

yinct;ntown  Branch 45,2.-6  86.000 

Ware- ?,^0  ,000  1,647,660 

Weat  Jersey 1,840808  1,808.760 


Funded      logs  in  prneea 

debt           lc68.  Hi  186H. 

if,M«,600    $614,816  $419,486 

$9,68^«46J  ) 

860,000  V  6,911,668  4,(KM.0»V 

1,066,179  886,010       190,606 

885,000  Leased  to  C  A  A. 

900,000  Leased  to  W  J^. 

8,610,000  8)'«89,418    8,879.198 


Dit't 

•  ••■ 

10 
10 
10 

V   ■  •  • 

8 
t 

10 


110,000 


68,000 


1,181,887 


80,587 
89.m 
70.816 
4S,e91 
11.118 

84i,ftrr 


17,481 
68,498 
T9,645 
66,468 
14,660 
416,083 
8,600JBiO    1,98M19    1,689,000 
400,000       879.860       861.600 
160,000      Leased  to  C  A  A. 
Les'd  to  Brie  for  $88,600 
83,000  L'd  to  B.  for  $58,400 
100,000        19,890 
1,860.000      854,898 
100,000        86,889 
to  Central  of  N  J 
800.000        67,706 
16,000  8,987 

611,400      460,870 
1,881,600      566,643 


18,890 

-  -  --, 


80,0M 

41,788 

8,487 

808,6U 

818,514 


7itk 

•  •  •  • 

6 
8 


% 

6 


e  See  note  2. 

t  Within  thelimitaof  Massachasetta. 

t  Percentage  of  $4,766,148  88,  dlYidenda  on  $69,794,416  46  paid  capital  atock  of  dlTidesd-paylBC 
railroada  indoded  in  this  table. 

a  Leased  to  Houf atonic  Railroad. 

5  Name  clianged  Irom  Agricnltnral  Branch. 

€  The  Boston  and  Worcest  r  Railraod  Company  and  the  Western  Railroad  Oompanv  cob- 
f  olldated,  nrder  the  name  of  the  Boston  and  Aioany .  'i  he  P^ttafiela  and  North  Adana  RallitMd 
is  operated  by  this  Company. 

d  Operated  by  the  Boston  and  Lowell  Railroad. 

4  Leaaed  to  and  operated  by  the  Boston  and  Maine  Railroad  Company. 

f  Operated  by  the  Boston  and  Frorldenco  Raihroad  Company. 

g  The  retora  of  the  Cape  Cod  Central  Railroad  embraces  only  the  Ato  months  undine  Apr!  8U 
1868;  at  which  time  the  road  was  transferrtd  to  the  Cape  Cod  Railroad  Company,  ana  it  li 
Eow  merged  iu  the  Cape  Cod  Railroad. 

h  The  Dorchester  and  Hilton  Branch  Railroad  is  operated  by  the  Old  Colony  snd  Newport 
Railway  Companv.  The  Dii^hton  aod  Bomers«t  RaLroad  Company  has  been  mer;ged  m  Vit 
Old  Co:ony  ajud  Newport  Railway  Company. 

i  The  Essex  Railroad  now  eonstitntes  the  Lawrence  Branch  of  the  Eastern  Rtllroad.  The 
South  Reading  Branch  Railroad  is  leased  and  operated  by  the  tfastem  RaiiroMi  Company.  Tbe 
Rockport  Railroad  baring  beenparchitseiby  tne  Ea«tem  ?^^"nM>d  Company,  now  coxiMitmetf 
apirtof  the  G.oocester  Bmnch  of  the  Eastern  Railroad. 

J  The  Fairharon  Branch  Railroad  is  owned  and  operated  by  the  New  Bedford  and  Taaiuva 
Rallrjad  Company,  and  its  retmn  appended  to  ihai  of  said  company. 

k  The  Stony  Brook  Rai  road  is  operated  by  the  Naehna  and  Lowell  Railroad  Ccnapany- 

I  **  Ntt  Inoome'*^  of  this  abf  tract  represents  the  amoont  remaining  after  dedocttng  ffoai 
*  ToUU  Income'^  the  following  irtms:  Expense  of  working,  intereat  paid,  and  MiltUte  or 
Nadonal  Taxes  ou  road,  diridends,  aorplns,  Ac. 

i  Debt  of  Joint  Companies. 


UR,    DELUARa    BSPOEtT    OH    THE    TARIFF. 


1&.  DBLliB'S  REPORT    ON  THE  TABIPP. 

\ye  give  this  public  document  iritli  i\t«  exception  of  the  tables : 

United  States  Bdrbad  of  SiATiflTicg,      i 
WiflniNOTON,  BticeiDber  11,  1808.  \ 

To  the  Seerttary  of  the  Titaaury: 

Sir — From  the  foundAtion  of  the  goTernment  of  the  Unileil  SUtes  to 
;^fl  jMT  1849,  Hfls,  with  ocoaaionul  exceptiona,  Rn  era  of  what  were 
>l^ecie<l  at  the  time  high  or  protective  taritTs.  From  184(1  to  1S61 
cii  an  era  of  what  were  deemed  at  the  time  low  or  revenue 
■AnSt.  In  the  first  era  the  object  was  protection — the  incident, 
rtvenue.  In  the  second  era,  the  oljuct  waa  revenue — the  incident,  pro- 
wtion.  The  relative  prosperity  of  tlie  c-untry  during  these  two  eras,  or 
■iurinj  certain  portions  of  them,  has  coramonlv  been  usel  as  evidence  of 
'.L^pMctical  benefit  dowing  from  one  or  the  other  of  the  rival  ftystems  of 
uiKtion  alluded  to.  But  when,  with  the  amount  of  our  foreign  trade  is 
v'uctra.'ited  the  vastly  greater  amount  of  our  internal  tratBc:  when,  in  a 
Ti-itH,  it  is  known  that  our  annual  export  trade  has,  at  least  since  1640, 
Qer«r  amounted  in  value  to  one-fourth  of  our  annual  products  of  raw 
natcrials  alone,  and  averaged  scarcely  one-fifth;*  while  as  com]iared  wiih 
'.he  zTOfi  annual  product  of  our  industries  it  has  scarcely  exceeded  five  per 
'r-Xi't.\  the  conclusiveness  of  this  argument,  so  far  as  experience  goes,  may 
well  be  que'tioned. 

It  is  suCSrlenu  for  the  purposes  of  this  report,  first,  to  merely  bri ell y 
n:^DLion  what  doctrines  upon  this  subject  have  alternately  prevailed  in 
I'.i'^  country,  and  what  views  are  at  present  held. 

From  18C1  to  the  present  time  has  comtituted  an  uninterrupted  erg  of 
iiizli  or  protective  tariffs;  and  eo  many  articles  are  made  dutiable,  so 
r.wny  changes  have  been  made  in  the  rates  of  duty  since  1861,  so 
nirrinely  hi^h  are  these  rates,  and  so  complex  are  many  of  them,  as  to 
i.s'uand  the  .Mlenlioa  of  the  statistician  to  tiie  working  of  such  a  sj'slei'n, 
:ii  eflect  upon  the  consumption  of  imported  commodoties,  its  effect  li 
wnefitling  the  interests  of  domestic  manufacturers,  its  effect  upon  the  n-^  ■ 
«r.ues,  and  finally  such  other  marked  effects  as  may  appear  to  have  flowi-  I 
ibm  it.  The  number  of  articles  subject  to  duty  at  the  present  time  -An- 
Hording  to  Ogden's  Tariff,  is  over  3,000.  A  large  proportion  of  the-«, 
l.iwever,  consist  of  classes  of  articles.  For  example:  "Articles  worn," 
i;.,  "manufacture",  N,  0.  P."  "raw  materials,  N,  0.  P.,"  ifco.,  each  of 
^hich  ctas!>e»  themselves  embrace  a  large  number  of  seperata  articles;  go 
liiat  the  whole  number  of  separate  articles  upon  whioh  import  duties  are 


290  MB.  dblmar's  report  ok  thb  tariff.  [^1 

Act  of  December  24, 1861. — Changed  duties  on  tea,  coffee,  sugar,  &e. 

Act  of  July  14,  1862. — Chauged  the  whole  schedule. 

Act  of  March  3,  1863. — Changed  duties  on  silk,  printing;  pap«rjac, 
polishing  powders,  washing  dyes,  coal  oil,  &c. 

Act  of  June  30, 1864. — Changed  the  whole  schedule. 

Act  of  March  3,  1 866. — Changed  duties  on  cottons,  liquors,  silks,  rail- 
road and  tubing  iron,  cosl  oil,  tobacco,  quicksilver,  &g. 

Act  of  March  14,  1866. — Modi6ed  the  warehouse  law. 

Act  of  May  16, 1866. — Changed  duties  on  live  animals,  &c. 

Act  of  July  28, 186G. — Changed  duties  on  cigars,  cotton,  and  liqaon, 
and  changed  basis  of  all  foreign  valuations,  &c 

A«tof  March  2, 1867. — Changed  duties  on  wool,  all  dry  goods, carpets, 
and  clothing  into  which  wool  enters,  on  hemps,  oil  cloths,  oil  silks,  &c 

Act  of  July  20,  1868. — Changed  duties  on  cigars,  &c 

Besides  several  minor  acts  and  parts  of  acts  and  a  great  yariety  of  coo- 
structions,  judicial,  departmental,  and  others.  Of  these  nuoierous  legisla- 
tive changes,  however,  the  principal  ones  are  those  of  1861  and  1864. 

The  tables  of  Imports  for  Home  Consumption  will  illustrate  the  enor- 
mity of  some  of  the  rates  of  duty  now  imposed. 

I  This  tAble  from  its  great  length  is  omitted.] 

In  illustration  of  th«  complexity  of  many  of  these  duties,  it  msj  be 
stated  that  the  duties  on  bal  moral  skirts  are  levied  per  pound,  the  same  on 
wool  hats,  and  most  other  woolen  fabrics ;  that  the  duties  on  steel  Tsry 
according  to  valuation,  being  so  much  per  cent  ad  valorem,  and,  io  add! 
tion,  so  much  per  pound  specific ;  that  the  duties  on  iron  wire  are  grade- 
ated  according  to  a  variety  of  qualities  and  gauges ;  that  the  duties  oa 
cotton  goods  are  graduated  according  to  the  number  of  threads  to  tin 
square  inch,  the  value,  the  texture,  and  the  color  classified  in  yarious  com- 
binations; that  the  duties  on  Muscovado  sugars  are  levied  acoordini?  to 
a  clayed  standard,  and  that  in  some  cases  '*  differential,"  **  disonmioRtingr 
and  **  additional "  duties  are  imposed  to  render  complexity  still  more  per- 
plexing. 

From  this  complexity  has  resulted  so  much  practical  diflicoltj  in 
the  business  of  importing  foreign  merchandise  and  so  much  dis- 
pute about  the  proper  rates  to  be  levied  upon  importations  as  to 
have  created  the  necessity  for  additional  officers  of  the^  revenue,  some 
of  whom  are  obliged  to  be  stationed  abroad  for  additional  s^^ 
guards  against  under-valuations  and  smuggling;  and  have  giv^° 
employment  to  a  large  class  of  persons  not  connected  with  the  govern- 
ment whose  whole  business  it  is  to  act  as  brokers  or  etitrtpeneun 
between  the  importers  and  the  Custom-house  officials.  Nor  have  the^ 
results  stopped  here;  but  still  another  class  of  persons  has  been  called 
into  existence  whose  business  it  is  to  interfere  between  the  recommeodv 
tions  of  the  Executive  department  and  the  Legislature,  and  to  seek  and 
influence  the  frequent  enactment  and  amendment  of  revenue  laws,  with 
the  object  of  profiling  thereby,  either  through  the  control  of  trade  mon- 
opolies or  from  the  possession  of  early  information  of  anticipated  clisnges 
in  the  law.  Such  has  already  been  the  success  of  these  persons  that  tiiey 
now  from  wealthy  and  powerful  combinations  impatient  of  all  restraint 
.and  intolerant  of  all  interference  with  their  plans.     All  who  stand  in  tbe:r 


1869]  Hiu  dslmar's  rbport  om  th&  tariff.  291 

waj  are  attacked  with  fury,  and  either  through  friends  ip  or  fear  even  the 
officers  of  the  executive  departments  are  brought  within  the  range  of  their 
influence,  and  constrained  to  follow  a  course  of  action  conformable  to  the 
wishes  of  these  combinations  and  in  their  interests,  and  contrary  to  the 
public  welfare  and  the  inteiests  of  the  people.  The  odious  combinations 
that  profit  by  the  internal  revenue  laws  are  more  than  matched  by  the 
still  more  odious  combinations  that  profit  by  the  tariff  laws,  until  at  last 
it  has  become  almost  as  much  as  the  official  positions  of  many  public 
servanta  are  worth,  to  set  themselves  in  opposition  to  tbem  in  tbe  per- 
formaDce  of  their  duties  to  the  government.  The  influence  thus  exerted 
upon  the  tariff  laws,  it  should  be  understood,  are  not  always  in  the  direction 
of  increased  taxes.  By  the  act  of  June  30,  1864,  an  internal  revenue  tax 
of  five  per  cent  was  imposed  upon  all  manufactures  and  productions  set 
forth  in  that  act.  To  counteract  and  balance  such  temporary  disadvan- 
tages to  home  manufacturers  as,  it  was  thought,  might  result  from  the 
imposition  of  these  taxes  before  the  same  could  be  drawn  back  in  the  ' 
prices  of  the  taxed  commodities  when  sold,  a  so-called  corresponding 
increase  of  duties  was  demanded  and  obtained,  though,  in  point  of  fact, 
this  increase  was  out  of  all  correspondence  with  the  additional  internal 
revenue  taxes  imposed,  exceeding  them  in  numerous  instances  many  fold. 

Subsequently,  during  the  winter  of  1867,  a  movement  for  the  repeal  of 
these  internal  revenue  taxes  developed  itself,  and  notwithstanding  the 
objections  interposed  by  the  Secretary  of  the  Treasury  to  this  proposed 
lowering  of  the  revenues,  in  his  letter  of  March  18, 1868,  an  act  was 
passed  on  the  31st  of  March,  1868,  which  effected  the  repeal  of  nearly  all 
the  taxes  upon  manufactures  and  productions.  This  important  act, 
together  with  some  minor  ones  that  preceded  and  followed  it,  effected  a 
reduction  in  the  revenues  of  nearly  one  hundred  million  dollars.  This 
reduction  was  not  followed  by  any  corresponding  reduction  of  the  duties 
on  imported  merchandise,  nor  was  it  followed  by  a  fall  in  the  market 
prices  of  the  merchandise  ft  om  which  the  taxes  had  been  removed ;  so 
that  it  may  be  concluded  without  fear  of  contradiction,  that  nearly  the 
whole  amount  of  which  the  government  was  thus  deprived  constituted  a 
direct  bounty  for  the  benefit  of  the  parties  interested.  Indeed,  so  little 
was  a  corresponding  reduction  in  thn  tariff  entertained,  that  shortly  after- 
wards a  bill  was  introduced  into  the  House  of  Representives  to  still  further 
increase  the  rates  of  duties,  which  bill  is  still  pending  legislative  action. 

At  the  present  lime  a  further  project  is  mooted  of  abolishing  the  income 
tax.  If  this  tax  be  abolished,  it  is  respectfully  suggested  that  there  may 
be  reason  to  anticipated  movement  tor  the  entire  abolition  of  the  system 
of  internal  revenue  taxes.  Towards  this  end,  the  odium  brought  upon 
the  collection  of  these  taxes  by  the  influence  of  internal  revenue 
combinations  goes  far  to  support  the  claims  of  the  tariff  combinations, 
and  when  it  is  called  to  mind  that,  as  a  general  thing,  taxes  are 
UDpopular  in  proportion  as  they  are  directly  levied,  the  suggestions  here 
advanced  will  not  appear  to  be  without  foundation.  This  conclusion, 
taken  in  connection  with  the  present  heavy  expenditures  for  the  public 
service,  embracing  as  it  does  oni  hundred  and  thirty  millions  alone  for 
iaterest  on  the  public  debt,  points  to  a  period  when  the  demands  of  the 
tariff  combinations  will  be  still  further  increased,  and  the  present  high 
tariff  sought  to  be  supeiseded  by  a  still  higher  one,  with  what  results  upon 


292  MB.   DELMAR^S   REPORT   ON   THE   TARIFF.  [^^W; 

the  dicipline  of  the  service,  the  yield  of  the  revenae,  upon  public  morality, 
and  the  industrial  interests  of  the  country,  will  readily  be  foreseen. 

When  the  means  for  opposing  these  tendencies  are  sought  for^  in  view  of 
the  great  interests  involved,  hovir  few  and  impotent  they  are.  Su  marked 
is  becoming  the  influence  of  these  combinations,  that  it  is  feared  that  the 
recommendations  of  the  executive  departments  on  this  and  cof;nate 
subjects  may  fail  in  future  to  receive  that  amount  of  consideration  which 
they  are  entitled  to  command.  Nor  does  the  action  of  the  commercial 
community,  as  indicated  hy  the  movements  of  trade  organizations,  appear 
to  develop  any  material  opposition  to  these  repeated  augmentation^  of 
customs  duties;  for  while  they  accrue  principally  to  the  temporarr 
advantage  of  the  home  manufacturers,  and  the  combinations  earij 
apprised  of  their  intended  enactment,  they  also  accrue  ia  a  measure  to 
tiie  temporary  benefit  of  importing  merchants,  since  they  enable  them  to 
dispose  of  at  higher  prices  such  stocks  of  merchandise  as  they  may  have 
on  hand  at  the  time.  In  short,  the  only  persons  whose  interests  are  botli 
temporarily  and  permanently  opposed  to  these  combinations  are  the  people 
at  large,  who  are  not  organized,  and  whose  interests  fail  to  be  fulij 
recognized  and  represented  in  the  ordinary  manner.  This  results  from 
the  fact  that  the  question  as  to  what  is  their  true  interest  in  the  matter 
is  a  very  complex  one,  but  more  from  the  fact  that  the  subject  has  not 
been  publicly  agitated  in  this  country  for  upwards  of  a  whole  gener- 
ation 

These  circumstances  afford  but  little  encouragement  to  oppose  in  any 
manner  the  prevailing  tendency  on  this  subject;  but  the  public  Sirvaot 
should  ever  be  mindful  that  the  ultimate  object  for  which  he  is  emploveJ 
is  the  public  interest,  and  that,  wherever  in  the  lino  of  his  duty,  he  b<:lievej 
the  public  interest  to  be  in  one  direction,  he  should  never  fear  to  pnr<ie 
it,  no  matter  what  powerful  combinations  and  what  influences  may  lie  in  ■^' 
other. 

There  was  brought  to  the  director's  attention,  while  engaged  upon  ll.o 
business  of  organizing  and  preparing  the  system  of  custom  bouse  statistics 
returned  to  this  office  a  series  of  returns,  the  compilation  of  which  bid 
been  neglected  for  many  years,  that  afforded — what  had  not  been  sliowa 
since  the  adniinistration  of  Mr.  Secretary  Walker — a  clear  view  of  the 
working  of  the  tariff  laws.  The  returns  referred  to  are  those  of  homecoo- 
sumption  (imports)  and  imposts  (duties),  now  printed  for  the  first  time. 
These  returns,  their  important  nature,  and  the  neglect  which  for  maoy 
years  had  atttended  their  compilation  in  this  Department  were  referred  to 
in  a  previ6us  report.*  Their  results  will  form  the  subject  of  the  present 
report. 

A  few  further  remarks  are  necessary  by  way  of  prefaca. 

Whatever  has  been  the  permanent  efftct  of  high  duties  on  iraportatioD 
in  restricting  in  other  countries,  or  in  past  times  even  in  this  country,  the 
statistics  to  be  adduced  will  prove  (other  things  being  oqual)  that— except 
for  a  short  interval  following   their    first  imposition,  the  time  varyicg 


*  Commerce  and  Naviffatlon,  1807. 


1869]  HR,  DIUIAb's  BBPOn   OM  THB  TARITF.  203 

aL'rordJD^  to  thoMveritj  of  the  rat«,  generally  from  one  to  tbr«e  yean — 
'ju-tom  duties  liave  no  sucb  eSdct  in  ttita  couatry.* 

Iinporlsiions  are  reneweil,  generally  on  nn  uDdiminUhed  ecala,  and  nevei 
Jiminishi'd  beyond  that  triSing  extent  nhicU  ffould  result  from  Ibe  «aine 
d^.'ree  of  lazatioa  levied  in  any  other  manner,  Tbis  is  a  point  of  ibe 
iiiLiIiest  importance,  for  it  dec^ldea  tbe  question  :  "Is  it  practicable  to  eecura 
I'V  jneans  ofa  tariff,  tbe  domeaiic  monoply  of  any  commodity  capable  of 
U'ng  raor«  cheaply  produced  abroad  1" 

Tlie  director  baa  carefully  examined  the  statistics  of  the  importation 
'■fa  large  number  of  important  article*,  and  in  every  instance  be  has  found 
■Lit  an  increase  of  duty  on  the  article  baa  been  fallowed,  firat  by  a  tom- 
;  .<r»ry  check  of  imporUttion  and  fulling  off  of  tbe  revenue,  and,  after  h 
Wi'-rinterral,  by  a  resumption  of  importation  on  an  undiminished  scale, 
'i:"i  an  increase  of  the  revenue. 

Tiie  result  of  these  obseivaliona  suggests  tbe  advantage  of  in  future 
loi.sidering  all  proposals  to  raise  the  tariff,  purely  from  the  standjioint  of 
''.'tvnue,  and  without  any  regard  to  their  supposed  effect  upon  im|)ortatioti, 
..'.'I  uoDseqnently  their  effect  in  protectin.;  or  nubservicg  the  interests  of 
N'/uestic  producers  or  others ;  it  being  shown  th»t  these  latter  eSccLa  can- 
loi  be  more  than  of  a  merely  ephemeral  character,  generally  lasting  not 
jverajear — sometimes  not  beyond  a  few  months — the  effect,  of  coutse, 
'.dng  proportionate  to  the  percentage  of  increase  effected  in  the  tariff.  It 
'■%  in  this  light  that  they  are  respectfully  submitted  for  your  consideration 
i'.i  lliat  of  Congress,  A  more  particular  description  of  the  tables  from 
^Wich  ihese  important  facta  are  derived,  now  becomes  necessary, 

TBE    HOME  COKBUMFTION   AND   IMPOST  TABLUS, 

rp  to  the  year  1864  tbe  collectors  of  customs  wereoot  required  by  the 
Tteiiary  Department  to  report  the  quantities  and  values  of  all  articles 
■liii:b  nere  imported  and  paid  duties  at  their  several  Custom  Houses  and 
^'leaniounL  of  duties  paid  on  tbe  same.  An  "impost  account"  was 
isimnded  of,  and  rendered  by  them,  which  exhibited  the  quantities  of  all 
.~?  separate  articles  imported  that  paid  speciSc  duties,  and  also  showed 
'■Uamoant  of  cash  received  as  duties  on  each  of  these  articles.  But  as  to 
■i-'-se  much  more  numerous  articles  that  paid  ad  valorem  duties,  the  farm 
'/n-Goant  demanded,  only  called  for  the  total  value  of  all  the  articles  that 
-ii^'^ted  into  each  ad  valorem  class,  as  e.  ff,  tS-.e  10  per  cent,  tbe  60  per 
^-rii,  the  60  per  cent  class,  i&a,  and  the  total  amount  of  duties  received 
I'D  each  of  such  clasaes. 

From  BCCOuDlB  thus  constructed,  it  was  impossible  tti  separately  ascer- 
:\.i\  either  tbe  quantity  imported  of,  or  tbe  duties  received  on,  any  article 
'iufl  ad  valorem. 


Id  require  maro  fpBca  for  explia  itloa 
iflh^rpork.  ThBratncfdnrylaTiHt, 


mir  "il    lie  pmdiicti 


294  HB.   DILMAR*6   BSPORT   OV  TBS  TIRITF.  [4pi^ 

The  iDSufficieccy  of  the  impost  accounts  in  omitting  to  furnish  the 
quantities  of  and  duties  on  each  separate  article  taxed  ad  valorem^  seemed 
to  have  attracted  the  attention  of  Mr.  Secretary  Fessenden,  who,  ia  1864, 
issued  a  regulation  calling  for  the  rendition  of  an  account  from  collectors 
in^hich  should  furnish  the  same  details  relative  to  the  importation  of  arti- 
cles taxed  ad  valorem  as  were  furnished  of  articles  taxed  speciBcally,  and 
moreover,  requiring  the  sworn  values  of  the  latter  (a  matter  that  had  pre- 
viously heen  omitted)  to  he  furnished  also.  In  obedience  to  this  requisi- 
tion the  accounts  were  prepared  and  forwarded  by  the  collectors,  but  tbej 
were  never  compiled  in  the  department.  Through  this  neglect  the  col- 
lectors gradually  ceased  to  render  them,  and  when  the  Bureau  of  Statbtics 
was  first  organized  (in  1866)  not  above  four  or  five  customs  collectors  were 
found  to  have  continued  the  practice  of  rendering  them  to  the  department, 
and  with  these  few  accounts  nothing  was  ever  done  beyond  filing  them 
away.  It  was  not  known  what  accounts  they  were,  or  why  they  were  sent, 
and  no  inquiry  seemed  to  have  been  made  in  the  matter.  As  for  tber^* 
ulation  of  1864  it  seemed  to  have  been  entirely  forgotten.  The  necessity 
of  possessing  an  account  of  this  character  induced  the  Director  to  make 
such  inquiries  as  afterwards  resulted  in  a  knowledge  of  the  neglected  r^* 
ulation,  and  as  eventually  led  to  its  enforcement 

The  first  fruit  of  the  regulation  of  1864*  was,  consequently,  the  Home 
Consumption  and  Impost  account  of  1867,  which  has  been  but  lately 
completed.  Without  the  aid  ot  thitt  account  of  1867,  the  conclusions 
reached  in  this  report  would  hardly  have  suggested  themselves,  so  much 
are  they  due  to  that  clear  view  of  the  subject  afibided  by  a  careful  study 
of  the  latter  account,  in  connection  with  the  impost  accounta  of  preceding 
years. 

It  is  hoped  that  under  no  circumstances  will  this  important  account  be 
permitted  to  ever  again  fail  to  reach  the  public. 

The  tables  for  the  period  1862  to  1866,  inclusive,  will  be  found  in  the 
following  publicatious : 

Impost  account,  1862 — Com.  and  Nav.,  1862,  p.  346. 
Injpost  account,  1863 — Monthly  report,  No.  16,  p.  17. 
Impost  account,  1864— Com.  and  Nav.,  1866,  p.  398. 
Impost  account,  lb 66 — Monthly  report,  N  \  4,  p.  6. 
Impost  account,  1866 — Com.  and  Nav.,  1867,  part  2.  p.  364. 
Home  coiisumpiion  and  impost  account,  1867 — herewith. 

It  will  be  observed  that  of  the  entire  series  of  these  accounts,  but  one 
was  published  before  the  Director  assumed  the  superintendence  over  this 
office. 

An  examination  will  now  be  made  of  the  statistics  of  protected  articles, 
selecting  for  this  purpose  the  leading  articles  of  iron  and  steel  manufac- 
ture. 

PIO   IRON. 

The  amount  of  pig  iron  imported  and  paid  duties  of  1861  is  not  known' 
The  net  amount  "entered,"  however,  was  1,466,839  cwt.,  which  probably 
approximates  the  amount  imported.  The  rate  was  then  24  per  ct^nt  ad 
valorem.  This  rate  was  raised  by  act  of  March  2,  1861,  to  30  cents  p«r 
cwU     The  import  at  once  fell  off  to  446,226  cwt.  in  1862,  but  recovered 


ISC9]  HB.  deliur'b  rkfoet  ok  the  TARirr.  295 

Hfi^r  tbe  lipsa  of  one  year  to  744,375^  cwt.  in  1863.  lo  16S4  the  import 
rose  to  I,57ti,562  cwL,  by  which  time  the  act  of  1861  apjienra  to  have 
^■t^f^ei  to  have  had  any  eifect  on  importation.  In  this  year  the  tax  was 
r.ii>e(l  50  per  cent  hiL^lier,  vii.:  to  46  cents  per  cwt.  The  import  at  once 
l'-:i  off  to  1,092,679^  cwt  in  1865,  but  recovered  after  the  lapse  of  one 
cenr  to  1.957,384  cwL  in  1866,  by  wbich  time  the  act  of  IBG4  bad  ceased 
to  have  any  effect  on  importation.  Id  1867  the  import  rose  to  2,379,799 
c»t^  and  has  not  diminifhed  since. 

Durini;  all  this  period  the  reveauee  from  this  source  abow  a  constant 
iQcrcaie  each  year. 

BAILROAD    IROIt. 

Tbe  amount  of  railroad  iron  imported  and  paid  duties  in  1831  ia  not 
bionn.  The  net  amount  entered,  however,  was  1,496,580  cwt.,  wbich 
|i-Lib»bly  approximates  the  amount  imported.  Tbe  rale  was  then  24  per 
crDi  ad  valorem.  This  rate  was  rained  by  tbe  act  of  March  2,  1861.  to 
t'j  cents  per  cwt.  The  import  at  once  fell  off  lo  124,723^  cwt.  in  1863, 
a^d  partially  recovered  to  397,863^  cwt.  in  1863,  tbe  rale  having  been 
ijain  raised  by  act  of  Ju!y  14,  186i,  this  time  to  67^  cents  per  cwt,,  and 
l:ie  import  again  checlied, 

Bjlin  another  year,  1864,  it  recovered  to  S,084,58T  cwt.,  by  which 
tioiethe  acts  both  of  1861  and  1863  appear  to  have  ceased  to  have  had 
inv  effect  on  importation.  The  rata  was  again  raised  by  act  of  March  3, 
I3'J5,  to  78  4-10  cents  pe'cwL,  and  tbe  import  in  1865  fell  to  1,488,854 
46112  cwL,  CO  misting  chiefly  of  entries  under  tbe  intermediately  pre- 
^uuj  rate,  enacUd  June  30,  1864,  of  67  2-10  cents  per  cwt.  In  1836 
tb  import  improved  a  little,  amounting  to  1,561,464  53-113  cwt.  But 
ID  1867,  while  still  subject  to  the  increased  rates,  it  surpassed  its  amount 
in  auy  of  the  previous  years  named,  the  import  reaching  2,094,233  17-112 
tKt.  So  that  by  this  year  the  influence  of  all  tbe  previous  increases  of 
run  had  ceased  to  have  any  effect  on  importation.  The  amount  of  duties 
received  increased  each  year  to  1864,  then  temporarily  fell  off  to  more 
thm  recover  again  in  1807. 

FOUSBIRO   IRONS. 

Tiiese  articles,  though  of  minor  importance,  exhibit  tba  same  results  as 

\hi  preceding.     The  rute  previuus  to  the  act  of  1861  was  24  per  cent  ad 

valorem.     The  rate  was  raised  to  Ic  per  lb.,  when  tba  impurt  fell  off  in 

i8G2  to  1,590  lbs.     Tbis  increasel  in  tbe  following  year  to  10,613  lbs., 

■hen  the  rate  was  agnin  raised  to  1^  par  lb.;  notwithsiandini;  whicii  the 

iT:i{>ort  continued  to  increase ;  when  the  rate  was  onca   more  raised,  this 

import  in' 1835   back    to  3.050  lbs. 

18,  and  by  the  year  1867  the  influence 

rates  entirely  ceased;  the  import  of 


prnvious  to  1861    these  articles  were 
jnL    No  Btatistioj.    By  tbe  imposition 


296  HR.  delmar's  report  on  thx  T1RIF7.  [-^pn^t 

of  2i  cents  per  pound,  under  tlie  act  of  1861,  the  import  fell  (it  is  belieTed 
to  have  been  previously  much  greater)  to  33,878  pounds.  RecoveriDg 
within  a  year  to  48,052  pounds,  the  rate  was  raised  to  3  cents,  when  the 
import  in  1864  fell  to  17,541  pounds.  Notwithstanding  a  further  increase 
of  rate,  it  increased  in  1865  to  69,500  pounds,  in  1866  to  88,401  pounds, 
and  in  1867  to  271,791  pounds,  the  duties  every  year  showing  an  incre&se 
except  in  1864. 

OLD    AND    SCRAP   IRON. 

Rate  in  1861,  24  per  cent  ad  valorem  ;  net  entries,  127,870  cwt  By 
act  of  1861  the  rate  is  raised  to  30  cents  per  cwt;  import  falls  in  1862 
to  48,79]f  cwt.;  increases  in  1863  to  199,797^  cwt.;  by  which  time  the 
effect  of  the  increased  rate  on  importation  is  entirely  lost ;  increases  again 
in  1864  to  213,755^  cwt,  when  the  rate  is  again  raised,  this  time  to  40 
cents  per  cwt.  Import  in  1865  increases,  notwithstanding,  to  274,829 
cwt;  falls  off  slightly  in  1866  to  241,079^  cwt.;  and  increases  in  1867  to 
708,104  cwt 

It  has  occurred  that  the  decrease  in  the  import  of  these  commodities 
from  1861  to  1862  may  be  ascribed  to  the  influence  of  the  civil  war. 

This  objection  will  not  avail,  since  the  argument  would  be  just  as  strong, 
if  all  refererce  to  the  falling  off  from  1861  to  1662,  were  omitted.  Tbe 
most  important  conclusion  derived  from  these  statistics  is  not  that  so 
increase  of  the  rate  of  duty  occasions  a  ftilling  off  of  importation,  hut  on 
the  contrary,  that  it  fails  to  produce  su'*h  an  effect.  The  cle;ir  and  irre 
futable  proof  of  this  fact  is  the  main  object  of  this  report,  and  it  is  ic  jK'S 
sible  to  see  how  the  evidence  can  be  successfully  impugned.  The 
quantities  nbown  in  the  tables  are  those  upon  which  the  duties  were 
paid,  and  the  combined  amount  of  the  latter  tallies  with  the  cash  receiveu 
info  the  Treasury.  The  quantities  are  not  merely  approximate — they  are 
exact:  and  here  the  matter  might  rest  altogether.  But  the  statistics 
furnish  other  and  less  important,  but  very  interesting  results.  It  » 
observed  that  though  increased  rates  of  duty  fail  to  destroy  importation, 
yet  that  there  is,  nevertheless,  an  interval  which  follows  the  imposition 
of  the  increased  duty,  of  about  one  year,  scarcely  ever  more,  during  which 
the  importation  is  temporarily  checked  by  it.  The  one  is  a  result,  tbe 
other  an  incident,  and  the  objection  applies  only  to  the  incident,  which  is 
unimportant,  and  is  merely  interesting  for  the  reason  that  it  is  sometimes 
mistaken  for  the  result 

'  It  is  wLat  occurs  in  this  temporary  interval,  it  is  this  incident,  that  b 
made  the  ground  of  a  permanent  policy,  while  wbat  follows  as  a  per- 
manent result,  viz.:  the  defeat  of  the  attempted  protection  is  not  per- 
ceived, or  if  perceived,  ignored.  Manufacturers  are  delusivelv  led  to 
believe  that  an  increase  of  tariff  will  secure  them  a  monopolv  of  the  home 
market,  and  are  thus  induced  to  contribute  largely  to  support  coiubina* 
tions  having  or  professing  tl'  have  this  object  in  view,  and  the  iofluence  to 
secure  it  The  combination  exerts  itself  in  procuring  the  passage  of  tbe 
law,  profits  by  being  able  to  anticipate  its  effect  on  prices  ;  and  having 
pumped  this  source  of  prodt  dry,  bequeaths  it  to  the  manufacturer,  whose 
brief  and  second-hand  employment  of  it  is  soon  interrupted  by  a  riseio 
the  wages  of  his  workmen,  and  afterwards  destroyed  by  the  recurrence  of 


1GG9]  HB.  PBLUAr'b  RZPOIIT  Olf  TUX  TARIFF,  29? 

tlie  same  relative  pOBilion  in  ttie  market  prices  of  the  fureigri  and  doineslic 
tnk\e  u  IhHt  from  which  lie  soogbt  relief  by  this  wLoU;  ineSectual  and 
delii'ive  agency, 

ri^e  manur;icturer  Buffers;  the  norlcrnen  are  impoverished,  for  they 
rarely  ohiain  nn  advance  of  wagi^s  exacilv  equal  to  the  advnnce  in  tho 
cost  of  living  tvbich  the  increased  lariff  has  occasioned  ;  the  puhlio  is 
fleeced  by  it  both  directly  and  indirectly,  and  denioriiliz kI  in  a  thousand 
wr%  and  noihing  comes  of  it  hut  proGt  lo  the  combination  and  a  popular 
delusion  nhieb  baa  been  dignified  by  (he  name  of  a.  system,  and  f>i]se]y 
ectilled  Protection  to  Home  Industry.  The  rest  is  mere  wasle,  social 
fritiion— SiBvpliism. 

To  recur  to  the  comparison  of  1661  with  1802,  which  illustrntes  the 
6nt  temporary  check  to  importation  during  the  perioil  1801  to  18G7, 
IsJuMve,*  it  should  he  staled  that  the  tot>iI  entries  of  1802  fell  uff  but  18 
p;r  cent  from  lliose  of  1861 ;  while  of  the  ar!it:le3  on  which  the  duties 
«rre  heavily  increased  the  en^ea  fell  off  25,  60  and  "15  per  cent — often 
lo  iriere  nothing. 

liul  enppose  ihe  objection  made  in  reference  to  this  period  be  nilmitted 
Id  h.iva  full  force,  tbis  does  not  dispose  of  the  fallinir  off  from  1604  to 
1S65.  fallowing  the  tariff  of  June  30,  J864.  The  war  came  to  a  cii>se  in 
180;-.,  the  total  entrisB  of  that  year  amounted  in  value  to  but  1219,000,000 
S'U,  while  in  1864  they  had  reached  «330,000,000— a  falling  off  of  25 
]>M  cent.  It  is  deemed  a  bad  rule  that  does  not  work  both  ways;  hut 
wbiit  shall  be  thought  of  one  that  will  not  work  either  way! 

IRON  IVIBK. 

Of  this  article  in  1861  the  net  entries  were  229,126  pounds,  which 
sppr.jTimately  represents  the  imports,  the  duty  having  been  then  24  per 
c^nt  ad  valorem.  This  rale  having  been  raised  to  a  complex  compound 
'inly  depending  on  size,  quality,  value,  etc.,  the  imports  in  1862  fell  to 
217,116  pounds.  The  rates  were  again  raised  very  materiully;  yet  in 
1503  the  importa  ro^e  to  1,734,770^  pounds,  of  which,  however,  a  con- 
KJrrahle  portion — 241,961  pounds — were  imported  under  the  rata  pre- 
viously eiisling.  This  avail  having  faikci,  and  the  duty  b.ing  now 
fery  onerous — its  effect  in  lliis  instance  lasting  beyond  one  year — the 
imports  of  1864  fell  to  1,065,021  pounds.  Yet  ngain  were  the  rates 
liiL-ed,  causing  the  imports  in  1S65  to  fall  to  670.139  pounds.  Bat  here 
li.e  icfluence  of  this  policy  on  importation  reached  its  limit.  The  imports 
iu  the  following  year  rose  to  1,371,288  pounds,  and  continued  in  1807  to 
remain  at  1,289,843  pounds.  It  nill  thus  he  observed  that  at  the  rate  of 
-4  percent  ad  valorem  the  imports  only  amounted  to  220,000  pounds 
[>Er  annum;  while  at  rates  running  from  2  cents  per  pound  and  16  per 
ceoi  id  valorem  to  4  centa  per  pound  and  15  per  cent  ad  valorem  the 
importa  averaged  1,330,000  pounds  per  sncum. 


298  HR.  dblmar's  report  on  thb  TARirr.  [4?*^^ 

pounds,)  6,561,200  pounds.  Duty  24  per  cent  advalorem.  Rat4  raised 
to  1^  cents  per  pound :  import  falls  in  1802  to  6,516,436  pounds ;  raWs 
raised  to  2  cents  on  cables  and  2^  cents  on  anvils  ;  import  falls  in  1863 
to  6,510,580  pounds;  no  funher  raise;  import  increases  in  1864  to 
10,699,259^  pounds ;  rate  raised  to  2^  cents;  import  in  1865  falls  to 
3,928,413  pounds;  recovers  in  1866  to  7,664,279  pounds,  and  in  1867 
increases  to  10,487,009^  pounds. 

It  will  be  recollected  that  of  late  years,  as  a  general  thing,  onr  tariff 
laws  have  gone  into  operation  immediately  after  their  enactment,  and 
without  any  previous  notice  to  the  public.  Hence,  whatever  effects  were 
occasioned  by  the  frequent  changes  of  rate,  they  could  not  be  forseeo  and 
taken  advantage  of,  except  by  the  combinations  influencing  their  enact- 
ment, and  advised  of  the  probable  success  of  their  efforts.  These  combi- 
nations sometimes  include  foreign  manufacturers,  who,  being  thus  fore- 
warned of  a  contemplated  increase  of  duties,  forward  an  extra  supply  of 
goods  in  time  to  enter  them  at  the  old  rates  of  duty,  and  reap  the  benefit 
accruing  at  the  rise  in  price  occasioned  by  the  imposition  of  the  new. 

For  more  particular  information  un  this  topic  reference  is  made  to  the 
official  report  of  Mr.  Consul  Post,  on  the  trade  of  Vienna,  dated  Mirch 
31, 1867,  and  published  in  the  monthly  report  of  this  Bureau,  No.  6, 
page  9,  from  which  the  following  passage  is  extracted : 

^'  There  have  been  exported  from  this  consular  district  to  the  United 
States  during  the  last  quarter  merchandise  to  the  value  of  1,725,773.61 
florins. 

^  The  proposed  increase  of  the  United  States  tariff  caused  a  lar^^e 
increase  of  exports  in  those  articles  on  which  it  was  believed  the  addi- 
tional duties  would  be  levied,  in  order  that  they  might  be  entered  under 
the  law  then  existing.  For  instance,  in  the  cloth  manufactured  at  Bronn, 
the  export  had  been  about  60,000  florins  per  month,  but  when  it  became 
probable  that  Congress  would  increase  the  tariff  on  woolens,  large  quauti* 
ties  of  cloth  were  hurried  forward,  and  the  amount  sent  to  the  United 
States  during  the  months  of  December  and  January,  and  while  the  tariff 
was  under  discussion,  exceeded  374,000  florins,  while  in  March  it  fell  to 
21,000  florins. 

*'  A  careful  investigation  would  doubtless  show  that,  however  an 
increase  of  duties  may  affect  the  government  revenues  and  our  home 
manufacturers,  the  collateral  and  immediate  effect  of  such  an  increase, 
after  a  prolonged  discussion  in  Congress,  announcing  in  advance  what 
additional  duties  will  be  required,  is  beneficial  not  only  to  the  importers 
and  owners  of  stocks  on  hand,  but  also  to  the  manufactories  abroad. 

**  The  manufactories  in  this  country  accumulate  large  stocks  on  hand, 
and  when  an  increase  of  duties  is  agitated  in  the  United  States  these  acca- 
mulated  stocks  are  sent  thither  before  the  law  goes  into  operation,  aod 
the  profit  of  the  transaction  is  measured  by  the  increase  of  the  tariffl  The 
manufactories  here,  relieved  of  their  surplus  stocks  are  again  pat  in 
active  operation. 

**  On  the  other  hand,  when  the  new  tariff  takes  effect,  our  country  is 
already  filled  with  these  foreign  stocks." 

CSRTAIK   WOOD   SCREWS. 

The  only  wood  screws  imported  into  the  United  States  for  many  V^^ 


18601  MR.  DEUIAk'B  BXPOBT   OK  THE  TAKinr.  299 

reaching  ^ack  ton  considerabU  period  previons  to  1860,  have  been  small 
quantities  of  f»tiCT  screws,  a  nionopoiy  of  the  business  of  manufacturing 
common  wood  screws  haviDg  been  Guccessfully  secured  by  tbe  manufactu- 
rers in  this  country  tbrougih  letters  patent  on  tbe  machines  employed  in 
lh«  mannhctore.  Tbe  following  stDtis^cs,  therefore,  relate  exclusively  to 
the  exceplional  clasa  of  screws  mentioned  : 

Duty,  prior  to  tbe  net  of  1881,  twenty  four  per  cent  a<l  valorem.  No 
■tatistics  of  imports.  Rate  raised  by  the  act  of  1  SHI  to  Gve  cents  per 
pound  on  screws  two  inches  or  over  in  length,  and  eight  cents  per  pound 
on  Mrev)'  lefe  iban  two  inches  in  length.  Import  in  1862, 
153.036  pounds,  believed  to  be  considerably  less  than  during  tbe  previous 
year.  Rates  raised  in  the  following  year  to  6^  and  9^  cents,  notwith- 
standing which  the  imports  increased  in  1863  to  174,006  lbs.  Imports 
in  1864,  170,748  lbs.  Rates  again  raised — this  time  to  eleven  cents  on 
ihe  smaller  sizes — the  sizes  of  which  the  imports  principally  coneisted. 
Imports  in  1865  reduced  to  88,61U  lbs.  But  in  the  courseof  a  single 
;ear  the  entire  infiuence  of  all  these  repeated  increases  of  rale  was  more 
iban  overcome,  and  in  18C6  the  imports  rose  to  over  one  million  of 
[rounds,  and  in  1B67  to  nearly  one  million  and  a  half  of  pounds. 
A  publislied  table  exhibits  the  details,  which,  as  in  all  the  preceding  cases 
clearly  and  nnmislakably  mark,  First,  the  influence  of  the  two  principal 
UnSi  of  1801  and  1864  ;  Second,  the  loss  of  that  influence  after  the 
Idpseof  a  year,  more  or  less;  and, Third,  the  permanent  restoraiion  of 
Uii;  previous  condition  of  affairs  despite  the  continuance  of  tbe  iucreased 
rates  of  duty  : 

S  TIE  EL, 

Prior  to  1861,  the  duties  on  steel,  vthether  ingola,  bars,  sheets,  or  wire, 
WM  15  per  cent  ad  valorem.  Net  entries  of  these  various  descriptions  of 
fleel  in  1801,  40,289,760  pounds;  import  supposed  aboutlbe  same.  The 
classiGcations  afterwards  adopted  make  it  necessary  to  trace  tbe  cours 
of  the  import  of  liteel  in  three  separate  direciions,  it  being  sufficient  here 
lactate  that  the  combined  imports  in  1862  fell  to  le^s  than  20,000,- 
OOO  pounds. 

1.  INGOTS,  BARS,  SHEETS,  OB  WIRES   HOT   LBSa  THAN   OHB-TOITRTH  IHOHB  B 
IK    DlitUETER — VALUE,  SEVEN   CENTS   OB  LEGS  PER  POUND. 

(Entries  in  1801  not  distinguishable  from  those  of  other  steel.)  Duty, 

uDiier  tbe  act  of  1801,  raised    to    lie.  per   pound.     Import   in    1862, 

G,T9S,094  pounds — believed  to  be  considerably  less  than  that  of  ihe  year 

previous.     In  1S63,  though  tbe  rate  had  meanwhile  been    raised  to  I|c. 

per  pound,  the  import,  under  both  the  old   and    new  rates — principally 

nnderthenew    rate — amounted    to    14,815,076    pounds.     In  1864  tbe 

import,  altogether  under  the  new  rate  of  one   and   three-fourth  cents  per 

By  the   act  of  June  80,  1864,  tbe 

two  and  one  fourth  cents   per  pound, 

.   import    fell    to  11,908,873    pounds. 

year  1866,  however,  the  influence  of 

ely    lost,  and  the  import  rose  to  19.- 

duties  being  afterwards  imposed,  it 


800  MR.  DBLMAB^S   REPORT   OK  THB   TARIFF.  [Apnl, 

II.  INGOTS,  BARB,  SHEETS  OR  WIRB  OF  STEEL,  NOT  LESS  THAN  OKI- 
FOUKTH  INCH  DIAMETER,  VALUE  ABOVE  SEVEN  CENTS  AND  KOT 
ABOVE  ELEVEN    CENTS. 

Duty  previous  to  the  act  of  1861,  fifteen  per  cent  ad  valorem.  Entries 
not  distinguishable  from  those  of  other  steel.  No  import  statistics.  Rate 
raised  by  the  act  of  1861  to  two  cents  per  pound.  Import  in  1862 
10,011,710^  pounds,  believed  to  be  le^s  than  that  of  the  previous  year. 
Rate  raised  to  two-anda  half  cents  per  pound.  Import  in  1863,  12,49V,- 
753  poun(ls,  showing  an  increase  in  the  import  notwithstanding  the  addi- 
tional duties  imposed.  This  increased  during  the  following  year  to 
14)1 40,86 7^  pounds,  when  the  rate  was  a^ain  raised,  this  time  to  three 
cents  per  pound.  Accordingly  the  import  fell  in  1865  to  9,453,459 
pounds,  but  recoveued  in  the  following  year,  1866  to  9,820,680i  pounds, 
and  in  the  year  1807,  increased  to  11,617,545  pounds,  not  quite  the 
amount  from  which  it  fell  in  1864.  It  will  be  observed  in  this  instance 
that  the  extremely  high  rate  of  duty  imposed,  occasioned  its  influence  to 
last  longer  than  in  the  cases  previously  adduced.  The  effect  of  the  tariff  of 
1861  u|(on  this.article  was  lost  in  less  than  a  year,  while  that  of  the  tariff 
of  1 864  was  not  quite  removed  in  three  years. 

III.  INGOTS,  BARS,  SHEETS  OR    WIRE,   NOT    LESS    THAN    ONE  QUARTER  INCH 

DIAMETER,  VALUE    ABOVE    ELEVEN'    CENTS.. 

Rate  previous  to  the  act  of  1861,  fifteen  percent  ad  valorem.  Entries 
not  distinguishable  from  those  of  other  steel.  No  statistics  of  imports. 
Rate  raised  by  act  of  1861  to  twenty  per  cent  ad  valorem.  No  statinics 
of  the  quantity  imported  this  year  nor  in  the  two  years  following.  R^te 
again  raised  by  the  act  of  June  30, 1864,  to  three  and  a  half  cents  per 
pound  and  ten  per  cent  ad  valore  ii.  Import  1,066,960  pounds,  believed 
to  be  considerably  less  than  during  the  preceding  yoirs.  In  1866  the 
import  rose  to  1,450,7 14  J  pounds,  and  in  1807  to  1,991,532  po»?nds. 

IV.    STEEL  WIRE  LESS  THAN  ONE-FOURTH  INCH  DIAMETE  <. 

Duty  previous  to  act  of  1861,  fifteen  per  cent  ad  valorem.  Entries 
not  distinguishable  from  those  or  other  st<»el.  No  statistics  of  ini ports 
By  the  act  of  1861  complex  compound  duties  were  imposed  of  two  cents 
per  pound  and  fifteen  per  cent  ad  valorem  and  two  and  one  half 
cents  per  pound  and[fifteen  per  cent  ad  valorem.  Import  in  18t)2,  682,740 
pounds,  believed  to  be  much  less  than  before.  During  the  following  year 
while  tbe  import  was  rapidly  reco/ering,  the  duties  were  rendered  still 
more  onerous  and  complex  ;  yet, such  was  the  impetus  attained  that  the 
import  amounted  to  1  2(9,520  pounds,  but  having  exhausted  itself,  it  fell 
in  the  succeeding  year  (1864)  to  358,913  pounds,  notwithstanding 
which,  the  duties  were  again  raised  and  the  import  fell  until  it  dimin- 
ished in  1865  to  92,898  pounds.  Under  these  various  augmentations  of 
rate  the  import  in  1866  only  rose  to  199,016  pounds,  although  during 
the  following  year  (1807)  it  increased  to  251,383  pounds,  in  tbij 
instance,  as  in  the  others  concerning;  sreel,  the  duties  were  raised  so  often 
and  to  such  an  extent  as  to  influence  the  importation  for  a  period 
exceeding  the  ordinary  one  ot  a  year.  The  combined  duties  heretofore 
imposed  upon  steel  may  therefore  be  regarded  as  having  effected  a 
three  years'  protection. 


1869]  KEt.  sklmar'b  kkport  cm  THB  TARirr. 

OKRTAIR    iTEBL    LAWS. 

Duty  previous  to  the  act  of  1861,  twenly-rour  per  cent  ad  valoreiQ' 
Eolries  not  dislioguishable  rrom  Ihoee  of  other  mBDufnctureH  of  Bf^el.  No 
sUliitJcs  of  imports.  Rale  of  duty  imposed  by  the  act  of  1861,  eiglil  cents, 
twelve  and  a  half  cents,  and  twenty  cenis  per  foot,  aceording  to  ciassifioA- 
lion.  Impart,  2,878  lineal  feet  in  1662,dimiDislied  to  2,356}  lineal  feet 
ID  1863,  by  the  temporary  exclugion  of  eaws  over  nine  inches  wide  effected 
by  the  duty  of  twenty  cents  per  foot.  In  1864  the  import  rose  to  4,050 
lineal  feet,  and  Dot<Tith»(aDdin^  a  further  increase  of  rate  it  roat}  in  1865 
to  5,893^  Ijnea)  feet,  and  up  to  the  ternainalion  of  the  }ear  lc6T  liaJ  not 
mati'riallt'  either  increaaed  or  diminiahed,  showing  that  in  this  c:i^e  the 
miubined  increase  of  duties  imposed  amounted  to  aomelhing  less  llian  a 
iliree  yeara  protection. 

BOLLKD    AND    B AH U BRED    IKON. 

Such  has  been  the  variety  of  rates  imposed  in  the  rarioua  tariff  acts  on 
tli«!e  commodities,  and  such  the  complexity  of  the  clasificHtions  used,  as 
to  have  involved  labor  in  the  preparation  of  table.i.  Rolleif  and  liatnmered 
iron  in  1862  consisted  of  eleven  classes  und-r  the  tariff;  in  18G3  of  nine- 
leen  ellipses ;  in  1804oftwelveclaBses  ;  in  1865of  eleven  chisses;  in  1806 
<.>f  teven  classes ;  and  in  1867  of  six  clafaea.  The  quantities  have  all  been 
lirou^ht  to  the  common  deooninalion  of  pounds,  and  the  rate  to  that  per 
Ion  of  2,240  pounds. 

Tiie    net  entries  of  bar,  hoop,  rod,  plate,  plate  and  sheet  iron  in  1S6I, 

Amounted  to  12o,523^  tons,  or  281,172,640  lbs.     'Ihe  import  of  that  year 

is  not  known  with  pretision,  but  was  probably  the  same  as  the  net  amount 

entirred,  or  thereabouts.      The  rate  was  tlieii  24  per  cent  ad  valurein. 

I'j  the  act  of  1861,  an  average  duty  of  78c,  per  100  lb?,  was  laid  upon  these 

commodities,  which,  aa  they  average  2c,  per  lb,  in  vulue,  was  equal  to  an 

n'J  lalorem  duty  of  39  per  cent.     Upon  this,  in  1862  the  import  fell  to 

"0,153,310  lbs,     A  further  increase  in  the  averaga  rale  to  890.  per  100  lbs 

waa  effected  in  1863,  notwithstnnding  which  tlieimporU  rose  to  182,102,- 

131  Ibe.     Again  the  average  rate  was  increased,  tiiia  time  to  90c.  per  100 

Ibi.    Despite  of  this,  Iho  import  rose  to    252,393,7181bs.,  by  which  lime 

theiariff  had  eeaeed  to  affect  the  importation.     Hy  the  act   of  June  30, 

16C4,  over  one-third  more    duties  were  now  imposed.     This  threw  the 

import  of  1865  back  to  130,834,239  lbs.     A  year's  rest  from  any  further 

uritf  influences,  however,  enabled  the  import  to  recover  in  1867  to  207,- 

^.T  6,556  lbs. 

InlbisinataDce  the  eombined  increasB  of  duties  have,  aa  has  been  shown 

lerated  as  a  check  upon  the  ordi- 

ncluded  in  the  clasilication  for  a 

lase  of  steel  it  was  a  threp  years 

icck  importation,  but  to  diminish 

it  to  diminish  it,  although  enough 

contended  that  the  principle  laid 
aeiy,  that  the  importation  of  a 
ked  by  meana  of  an  increase  of 
protection  is  impracticable — haa 


302  «  MR.  D£Lmar'8  rbport  ov  thb  TABmr.  [^pnl) 

been  fully  proved ;  in  otber  words,  that  it  is  not  possible  by  meais  of  a 
tarifif  of  duties  to  alter  those  relative  conditions  of  production  which,  with- 
out any  tarifif  at  all,  naturally  exist  between  a  commodity  manufactured 
abroad  and  in  this  country,  no  matter  what  those  conditions  may  be.  The 
statistics  adduced  are  of  the  highest  authority,  and  their  oorrectoess  can- 
not be  questioned.  The  quantities  were  derived  from  the  liquidated  entries 
and  were  those  upon  which  the  duties  were  finally  predicated,  and  upon 
which  were  based  the  cash  settlements  of  the  collectors  of  customs  with 
the  Treasury  Department. 

The  only  reply  that  can  be  made  to  the  inductions  they  present  is  that 
the  duties  are  not  high  enough  yet,  and  that  if  they  are  placed  still  higher, 
they  will  eflfect  the  object  sought  after.  The  insufficiency  of  this  reply  is, 
obvious  enough  when  it  is  recollected  that  the  present  duties  are  the 
result  of  some  tliirty  or  forty  consecutive  attempts  to  secure  protection  bj 
means  of  the  tarifif.  The  first  of  these  attempts,  made  in  1*789,  consisted 
of  a  duty  of  five  per  cent,  upon  all  iron.  This  rate  was  thought  at  the 
time  to  be  sufficient  to  equalise  the  diflerence  between  foreign  and  domestic 
iron,  and  to  secure  a  home  monoply  to  the  latter.  In  the  following  year 
this  rate  was 'raised  to  seven  and  a  half  per  cent,  on  manufactured  iron :  in  ' 
1792,  to  ten  per  cent  on  all  iron ;  in  1794,  to  fifteen  per  cent;  m  1804, 
to  seventeen  and  a  half  per  cent ;  in  1812,  to  thirty  per  cent;  in  1816,  to 
still  higher  rates;  in  1824,  to  still  higher  rates;  in  1828,  to  still  higher 
rates,  namely,  $12  60  per  ton  on  pig  iron,  $36  per  ton  on  bar  and  roiled 
iron,  and  25  per  cent  on  other  manufactured  iron  ;  when  they  were  after- 
wards lowered,  and  alternately  increased,  thrrough  a  long  series  of  year^, 
untill  they  were  at  last  raised  up  to  the  exorbitant  rates  shown  in  the 
foregoing  tables,  and  always  with  the  same  result,  namely,  the  recurrence 
of  the  importation  after  a  short  period  following  the  imposition  of  the 
increaed  duty. 

A  still  further  inference,  one  of  no  little  importance  to  our  manufacturer*, 
is  to  be  derived  from  these  statistics.  If,  as  is  believed  to  be  fully  proved, 
the  tariff  is  impotent  to  effect  a  permanent  home  monoply  to  their  raaou- 
factures,  it  follows  that  such  of  them  as^have  continued  to  exist  at  all  have 
existed  without  assistance  from  the  tarifif,  and  consequently  are  able  to 
exist  in  future  without  any  assistance,  real  or  supposed,  from  this  source, 
in  point  of  fact  they  exist  despite  (he  tariff,  because  an  increase  of  duties 
is  seldom  or  never  effected  without  subjecting  the  manufacturers  to  some, 
often  to  a  very  considerable,  expense;  and  upon  further  consideration 
does  it  not  seem  strange  that  in  a  country  where  there  are  large  deposit* 
of  iron  ore  and  equally  large  deposits  of  coal  in  close  contiguity,  thru 
domestic  iron  cannot  be  laid  down  in  our  markets  as  cheaply  as  fonrip 
iron,  laden  as  the  latter  is  with  heavy  charges  of  freight,  ootmuisions,  an! 
profits?  Labor  per  diem  is  dearer  in  this  country.  It  is  true,  Imt  u, 
perhaps,  is  also  more  efficient.  Yet,  however  tbis  may  bo.  it  remains  tj 
be  proved,  that  the  various  manufactures  of  iron  and  steel  enumerated  ia 
the  foregoing  exhibit  have  derived  any  permanent  support  whatever  from 
the  tariff,  the  latter  having  failed  in  any  instance  to  check  or  diminish  the 
importation  of  the  foriegn  article,  except  for  a  brief  interval  following  the 
imposition  of  the  increased  duty;  and  it  follows  that  the  domestic 
manufacturers  of  these  articles  have  existed  not  because  of,  but  not  wiih- 
standing,  the  tariff. 


1860]  TBI   ALIBAUA.  TRKATT,  803 

iDTiflirof  tbesa  mallen  it  certaialy  appears  th^  boodiI  policy  demands 
IB  (olan  tfaa  rejection  or  any  other  consideration  in  Mnneclion  with  the 
atDOQDt  and  source  of  the  public  revenues  but  those  in  the  interest  of  the 
people  at  large. 

I  am,  sir,  jours  respectfully, 

Alkundkb  Dbuub,  INrector. 


TBE  illfilHl  TBEAn. 


Same  needless  uneasinefs  has  prevailed  since  the  i^oction  on  Tuesday 
bj  Ibe  Senate  of  the  Alabama  protocol,  which  was  negotiated  between 
Mr.  Rererdy  Johnson  and  Lord  Clarendon,  The  reasoos  for  this 
Diusual  action  are  clearly  presented  in  Mr.  Sumner's  elaborate  speech 
vbich  was  published  on  Thursday.  That  these  reasons  were  convinc- 
ing is  sufficiently  evident  from  the  fact  that  with  a  single  exception  every 
vote  of  the  Senate,  without  regard  to  political  party  was  recorded 
^aiost  the  treaty.  We  need  not  advert  to  these  arguments  in  detail. 
'Hie  main  prinraple  involved  in  them  all  is  thif,  that  the  treaty  regard. 
ed  tbe  outrages  of  the  Sontbem  cruisers  as  directed  against  the  individual 
cltiuns  of  this  eountry^nd  left  out  of  sight  the  paramount  question  that 
ibese  outrages  were  national  and  political  as  well  as  individual. 

From  beginning  to  end  this  treaty  aims  at  a  settlement  ofindividual 
clainis  on  both  sides,  tbe  one  being  a  set  off  aguntil  ;he  other.  This 
great  national  difficulty  is  thus  made  to  shrink  from  its  due  propor* 
tioDsisto  a  petty  insignificant  quarrel  between  a  few  scores  of  private 
citizens  in  Great  Britain  and  in  the  United  States.  The  affronted  honor 
and  icsjeaty  of  the  United  States  is  not  regarded  in  the  treaty. 
Hence,  even  the  Confederate  bondholders  suppose  themselves  to  be 
included  in  its  provisionr.  Mr.  Sumner  cited  frtm  an  English  journal 
a  elatement  that  tbe  claims  of  these  bondholders  were  founded  on 
immense  quantities  of  cotton  worth  at  the  time  of  its  seizure  forty 
ctDts  a  pound,  which  being  in    the   legal  possession  of  the   bondholders 

I  other  destroyed  property   before 
the  Confederate  loan  went  up  from 

n  as  the   treaty    was  signed.     Mr. 

elaborate  exposition   of  this  poli- 
He  showed    that   the  treaty  as  it 

nfltions  which    would    rankle  in  tbo 
produce  mischievous  effects.    Like 

md  to  the  bottom,   that  it  might  be 


804  THB  ALABAMA   TREATY.  [^P^ 

We  presume  that  Mr.  Motley,  our  new  minister  to  EDgland, 
ivill  at  some  early  date  open  negotiatioDs  for  another  treaty.  It  is 
only  fit  that  full  instructions  should  be  drawn  up  for  his  guidance  on 
two  points.  First,  as  to  the  nature  and  extent  of  the  losses  for  which 
we  claim  reparation  from  the  British  Government.  These  losses  it  is 
almost  impe^sible  for  us  to  estimate.  Our  ships  were  driven  from  the 
ocean  ;  our  carrying  trade  passed  into  the  hands  of  other  nations ;  cor 
merchants  were  panic-stricken ;  the  rates  of  insurance  were  doubled  and 
our  mercantile  marine  was  almost  annihilated.  Mr.  Sumner  quoted  from 
a  report  of  Mr.  F.  H.  Morse,  XJ.  S.  Consul  at  London,  dated  January 
1,  1868,  the  evidence  on  this  point  as  follows: 

On  the  breaking  out  of  the  rebellion  io  1861,  the  entire  tonnas^e  of  the  Uoited 
States,  coasting  and  regiMered,  was  6,6S9,^ IS  tons,  of  which  2,642,626  toD«  era 
re.'istered  and  employed  in  foreign  trade,  an  I  that,  at  the  cloee  of  the  rebellioo  io 
1865,  notwithstanding  an  increase  in  coasting  toLnage,  our  registered  tonnage  had 
fallen  to  l,6  2,628  tons,  being  a  loss  during  the  four  years  of  more  tha^i  a  mil- 
lion tens,  amounting  to  about  forty  per  Ci*nt  of  oar  foreign  commerce.  Darii^ 
the  f^ame  four  years  the  tatal  tonnage  of  the  British  Empire  rose  fr.:m  6,896,S69  tof» 
to  7,822,6U4  tons,  the  increase  being  especially  in  the  foreign  trade.  The  report 
proceeds  to  say  that,  a^  ta  the  cause  of  the  decrease  in  Ame  ica,  and  the  correspood* 
ing  increase  in  the  British  Empire,  there  can  be  no  room  for  question  or  doubt. 

Conceding  to  th?  rebels  the  belligerent  rights  of  the  sea  when  they  had  not  a 
solitary  war  ship  afloat  in  dock,  or  in  the  process  of  constraction,  and  when  they  bid 
no  power  to  protect  or  dispose  of  prizes,  made  their  st  a-rovers,  when  they  appeared, 
the  ins^rutL  ent  of  terror  and  destruction  to  cur  commerce.  From  the  appearance 
of  the  first  corsair  ic  pursuit  of  their  ships,  American  merchants  had  to  pay  oot 
only  the  marine  but  the  war  risk  also  on  the  r  ships.  After  the  burning  of  one  or 
two  t>bips  with  their  neutral  cargoes,  the  ship-owner  had  to  pay  the  war  ri»k  on  the 
cargo  his  ship  bad  on  freight  as  well  as  on  the  ship.  Even  then,  for  safety,  the 
preference  was,  as  a  matter  of  course,  always  given  to  neutral  vessels,  and  Amencaa 
ships  coul  1  rarely  find  employ meit  on  these  hard  terms,  as  long  as  there  were 
good  neutral  ships  in  the  freight  markets.  Under  such  circumstacces  there  was  no 
course  left  for  our  merchant  ship-owners  but  to  take  such  profitle  s  business  as  was 
occasionally  offered  them,  let  heir  ships  be  idle  at  their  moorinfl^  or  io  dock  «itb 
large  expense  and  deterioration  constantlv  going  on,  to  sell  them  outright  when  they 
could  do  so  without  ruinous  sacrifice  or  put  them  under  foreign  flags    for  proteciioo. 

Mr.  Sumner  proceeded  to  show  that  "  beyond  the  actual  loss  to  the 

national  tonage,  there  was   a  further   loss   in  the   arrest  of  the    natural 

increase  of  our  shipping  industry,  which  an   intelligent  statistician  pu'j 

at   five   per  cent     annually,    inakiDg     in     1866  a    total  loss    on   this 

account  of  1,384,958  tons,  which  must  be  added  to  1,229,035  tons 
actually  lost.     The  same  statistician,  afler  estimating  the  value  of  a  ton 

at  $40,  gold,  and  making  allowance  for  old  and  new  ships,  puts  the  sum 
total  of  national  loss  on  this  account  at  $110,000,000."  By  the  pay- 
ment by  England  of  tins  sum  Mr.  Sumner  seems  to  think  that  satifactioa 
will  be  made  for  the  injuries  which  the  British  pirates  inflicted  on  oar 
private  citizens. 

Secondly,  there  remains  the  political  reparation  which  can  be  made  by 
no  payment  of  dollars  and  cents,  but  must  be  provided  for  by  treaty 
stipulations  which  sball  prohibit  futuri^   mratical  expeditions  and  modify 


166SJ  KRIS   BAILVAT.  305 

itjfl  eiistjn^  co6a  of  acknowledged  international  law  between  the  two  coun- 
trio.  We  have  ofleo  di&cutted  these  principles  with  Great  BrilaiD. 
Aod  it  will  be  a  happy  result  of  these  tedious  and  protracted  nego- 
tiations if  we  can  settle  and  Gz  on  more  enlightened  principles  the  code 
of  internBlional  law  reguklirtg  the  duties  and  rights  of  neutrals  and  the 
Claims  and  obligations  of  belligerentf.  Mr.  Sumner  quotes  fredy  from 
various  authorities  on  international  law.  But  it  is  evident  that  these 
treiliMs  ou  iDtemational  jurisprudence  baTe  been  eadfy  neglected  and 
lUir  teachings  defied  in  the  treaties  on  which  rests  the  binding  force  of 
Kisitive  interoatioaal  law,  as  accepted  and  enforced  among  nntiona  ia 
Bi-Aeta  warfare. 


ERIE  BAILVAY. 


The  main   line  of  the  Erie  Railway,  including  the  New  Jersey  lease*, 

b»  a  length  from  Jersey  City  to  Dunkirk  of  460  miles.     It  bas  branches 

!r -m  Suffera  (3S  miles  north  of  Jersey  City)  to  Piennont,  18  miles  from 

'iteycourt  (54  miles  from   Jersey  City)  to  Newbury,  19  mile;,  and  from 

li'jrnellsville  (332    miles  from  Jersey  City)  to  Attica,  60  miles,  at  the 

i:iltfrp]ac«  connecting  with  the  Biifalo,  Netr  York  and  Erie  Rnilrond, 

Titselioes  aggregate  557  miles,  and  have  connected  willi  lh*m  218  miles 

'jf  Mcond  and  171.6  miles  of  side  trjck  and  turnouts,  mflking  the  total 

^ '.;lh  of  equivalent  single  track  owned  by  the  Company  946.6  miles. 

[;iides  this,  the  leases  held  by  the  Company  cover  an  eitfint  of  216.5 

'  'ics,  on  which  there  is  33.5  miles  of   second  track,  sidings,  £c.     The 

i.oiipany  also  operated  in  1867-68  at  fixed  rates  per  mile — the  Warwick 

Valley  Railroad  10  miles,  the  Montgomery  &  Erie  Railroad   10^  miles, 

ibe  Middletown,  Unioo  &  Watergap  Railroad  14  miles,  and  the   Jefier- 

10  more  recently  taken  a  lease  of  the 

hicb  it  is  now  operating.    The  Erie 

se  of  the  Atlantic  &  Great  Western 

liary  leases  (if  aDy)are  not  accounted 

mpsny. 

everal    lines  owned,  leased  and  oper- 

1881.       IBSS.       IMS.     1860-7,  IBS7-8. 
KT.C       SB'.O       K7.0       EST.D       U7  0 

iti.B     «a.Q     soa.o     sii.s     ne.o 


306                                                        KBIK  RIILITAT.  [^J>ril^ 

The  leased  liaea  are  as  follows : 

Balfclo,  S«w  ToTk  «'d  BrtB  l« iw.D  l«P.O  1M.0  !«.•  1«.0 

KoctieH  TUia6en-T>UejBlt JH.O  IS.O  18.0  ISO  19 » 

aivmoniBB.....".  . 17.8  n.S  JT.O  ITS  n.S 

HtwlejUrandiRR....  ■ ISO  II.O  IS.O  1(0  !».» 

BoflHo,  Bradlbrd  A PltUbug  BB K.O  K.O  CO 


Tho  rolling  stock  owned  and  operated  by  tbe  Company  in  1867-6S 
oonsUted  of  371  locomotiTes  and  6,343  care ;  of  the  latter  187  were  [<a3- 
senger  cars,  300  emigrant,  baggage,  milk  and  expresa  care,  3,268  hot  i;, 
milk  and  oil  freight  caiB,  11,403  platform  freight  can  and  1,185  coal  ctn. 
In  the  following  table  we  give  the  number  of  eDgioet  and  cars  owned  at 
the  close  of  tl-e  five  years,  1864-68: 

ISSI.        1S«.      lEM.       1KT. 
LocomOtlTS  gsElnw 17*  sa         m  Sit 


iv'ss?:! 


a,iia     S.104 


Tolal  Dumber  of  cut 4,TU       S,Ue       &,»»>       bJXn 

lo  1867  the  fiscnl  year  which  previously  had  closed  December  31,  cl 
September  30.  This  change  was  made  so  as  to  comply  with  tli«  S 
law  requiring  all  companies  lo  report  for  the  year  then  ending,  in 
table  which  follows  we  give  a  summary  of  the  operalione  of  the  comj 
and  their  results  for  the  five  years  closing  September  30,  1868 : 

t9H.         IMB  IBM.         leat-CT.       1» 

Mllu  ?DD  bT  tniD* a.»is.SH  ^83a,llls  T.tw.in    «,4S8.na     t,ii 

PuieHEera  oritvd l,7BS,eO*    S.IIS.9U   *,n4.>ll     l.MB.I(a      XV 

FialvUfniOTed,  lau S,a:«,W    S.CU.'IBl    >,8I1,M»     x,4M.H«      S.»i 

PMfeDe.r  mUuge 1ie,4M,MI  \U.K 

Fnl^b. mUaiLga ~-      .■■■■ M«,88S,4»  fia^n 

rPuHigan >,oii{i<ie  <tti,aH  a,iis,sM    i.wi.stt    a^ 

i Freight. RM^EUT  l].«ie.54a  ll.MI.MI  l],10<,8a»  IO,St 

uiii     loi.sn     m.89s     in,4U  im,n<  i* 

XlecaUoiia'* 89,190        Sl.t^        M.OIS  «9.«n  C 

Toul is,i»,ui  ie,tas.iss  »j>M,«s  ii,tn,iii  ks; 

rFiaacnnr. LSin.m    8  m,ffll    S.088,8GB     S,tlMH      a,11 

r-pnallBnltrtigtil 8,041,111    8,880,111    7,'nM,SSl      S,lt»,4t>      SJU 

ElBOnsMl 

[  loUL s,«gi,tee  ii,7M,w  io,89a,Mo  10,(11.111  ii,u 

mtreWBO* 4,4«8,sn  4,7IF,8SS  8,7*8,178  4,0rS.9SS  I,t« 

Biniliigaiiiii  mile  ol  rout 16.858  SO.SSS  1S,8G8  t8,««8  il 

SipcD.ei                           ll.M  K7«8  ll.Ml  ia.>a  ]i 

ProfltB            "           "      ^«08  B.Mt  48)8  B.1M  4 

cent <t.7>  n.tt  ».tS  Tt.Ot  TI.« 


m9]  Brh  RAtLWir.  201 

The  geoeral  incoms  acconnt  ahowg  wLat  disposition  has  beeo  mnde  of  the 
set  earoioga  in  the  game  years,  aad  as  follows  : 

mi.       law.  im.  im-tn.  isn-sa 

EViorp f-on iMt jMi    Tlt.MS      SB;,8TO  SsoiM  8,M*(/)a      mnnM 

i<lMraii«i  4,*j)3W    <,Tu:,ir3S  8.7«Jtia  4,l)09;fli(U    S,v44l&SS 

Tool  resonre™ I,S«,m    X.»^aU3  «t4^  i^'^    ioii^ 

h««lmNindi l.aiJ,8na    l.IKm.7T0  i.6S1,ira  1,BH.!»S    LfiTaOS 

.„a,o  n.ill.j^    lB3,mO      lsa.«ft  4OT.»ri  MTo.B       4  W  sS 

■"iSStii:;:::::-::::-;:;;::::  iiSa   JS®  BS   SS   f|i 
!SK^~t::;:::;;;:;;.;;:::::":.  1!;S  '&  "•;■-  S  ^^ 

'■■^'"uf™ k™        S'™         Sf'i^l       '*'^**'       "^.'STS 

iMindl^in^ '  '  '  E;^'''        *'•**'       •*>!«* 

!JrB.,s.r*E'KE,'ei(C"i;;!;;'"'"i!  jojsJT    4m,m    ;;i;;;;    *fs,*608 

Ti.uidi.bBn«o«nts s,sst.m  ^TmSm  s.is5.aii  Mw^  MJi,m 

r'^ii^ndtiind S,6S9,994    8,440,4,9    1,*2S^    liseioM    "saivm 

Tie  dividtnd  fund  wu  disposed  of  as  follows: 

^■^^moBdiiidCTd"::'.:.:::'.".: :.»».«»'  i*i9.ssi   m,aos   b6t,ws   657,305 

uji«i,neitje«r m,m    m,ibi    ieiilm     m,Oia    Hiliai 

Thereturns  for  186^-67  include  mid  duplicate  Ibe  smounuforthe  three 

■<il  iLonlha  of  the  year  1866.     The  income  balance  carried  to  1866-87 

I-  i'lii  of  September,  18G6. 
Ti.e  general  bslancw  of  the  company,  showing  t'^eir  financial  condition 

.1  of  October  1. 1864^1868  inclusive,  are  shown  -r.  tlie  following  abstract : 


., ..  .$i»,4(H),itiO |i8,a-o.iixi  ti«.67j!3no tie ra  sen «si  toT :j> 


V-1.0  iui.tMk,^ »«.«5s,Eooia6,ios.eoo»swn,sio»aMii,s.o."^ri„p 

,     Mf'^'I"?     B.'*-!™     B,C«o;o.iO 


B,l'(lU.tjl  0 
4,«t.lH0 


tM,S8T,8T4  tei^18,Ul  tTT.lOS.Sat 


I,'.I0,Sil4    lSJi(U,e»8 

i.oai.sii)    8,i>i«,fl90 


Ii*,s8j,«a  isi,ai*,'.8i  $Tt,«B,[ias 


SOS  RAILBOAD  KARNIirOB   FOR   UXRCB.  [AprU, 

The  common  stock,  including  cooTerted  scrip,  amonoted  in  M«nb, 
1860,  to  (57,766,300.  Ttiia  is  the  »worn  sutement  of  Jay  Oonid, 
Esq.,  Preiideot  oftbe  tonipanv,  and  includes  the  whole  seriesor  iaaer, 
less  amounts  recalled  and  canceled.  The  diapoHition  of  the  increase  (til,- 
463,090)  in  a  fen  months  is  one  of  the  nxst  extraordinary  traiu*ctioiu 
ever  witnessed  in  financiHl  circles,  nnd  fortiids  the  thought  of  the  Con- 
pany'sstock  receiving  ever  an  ullimnte  dividend.  The  fluctuations  of 
tlie  Company's  stockH  (lowest  and  highest  priues)  at  New  York,  montblv 
for  five  years  are  shown  in  the  follutving  tabulation  : 


BoTcmbar .,...    9»A®1UX  B!  lit  M  MjiWtaX  SOJitTiK 


liavitj Iimjiaiis  ,.  _  „  __    _ 

Tohrasry lOT    &lit)i  K  IB  X  K>i&^     •"»' 

..III  ®iMM  44        K  n  !    eax&axtt\' 

..  ittT  (^iM    K  n  >MK  Sat    KK 

•■"  Minxes        K  61  «'B»(3«!««& 

H  s)  1    MjtSrixnK. 

)•:  01  IX  WWTSM  4SA< 
«  BM  .  _  «  68   StIM  «  . 

Teir K    &lK}t  i*)i<^l<Mii  KlMtVIX  tSU^aa     Ua 


KoDtha.  ISH-S.  I8SS-C.  IGOB-I. 

Oclobn ;    IDO    @101  6t    QSS  TBMaST 

November 100    ElW)(  81    ®84)i  BOmSmj 

DcMinbcr WX&irS  M\@^  M   Ss- 

JuDUy :     »i    aiOi  81    @»7«  SB    ~"* 

r«bni»iy 110    fflSS  80    ©'^V  TO 

Muelk 10    ®«a  eo    S^jJ  BB    . 

April TT    aM  t*Xit,it>}(  IIS)ti 

M^r 8^  wBo  n  a*  ■"  ■ 

Jdds ei\S  Mt  Ti  iBiTa 

Jiiir M.  »L  e9x  ■!»«©« 

Anioat ;     en   &  siji  tiX®" 


I    ft  86       7fi    @i3t 


iBxaw     i« 

14    OTSW    SB 


Tur SexailB        m    ®1M3(    n    ®%M    W^iOAt       6S   < 

The  prices  of  the  common  stoclc  were — iu  October  38@49^,  iu 
vember  3fi^S4,  in  December  37^@4I,  in  January  3 8® 40^,  in 
riury  S8@38 ;  and  of  the  preferred  stock — in  October  6£®T 
November  d9@65,  in    December  00@65,  in  January  61 1@64. 


KAILBOAD  Um%%  FOK  MJBCH. 
The  spring  opens  »ith  unusual  indications  of  pro8|ierity  to  our  rail 
interest  Large  crops  throughout  the  West,  and  the  growing  deri 
meat  of  the  country  through  nhich  the  roads  pass,  have  resulted  in  ■ 
dedly  increased  earnings,  the  total  for  Maroti  of  iha  compsniei 
give  below  being  (1,196,171  in  excess  of  the  fame  month  last  i 
KDd  (1,130,728   in  (xcess  of  March,  1867.    This    improvement  in 


1S69J  KAILROAD    IIRHIHOS   FOB  U^RCH.  SOB 

eardoga,  together  with  the  anticipalion  of  increased  trade  od  the  openiog 
o:'  [:ia  Podlio  Railrond.  are  the  basis  for  tie  upw&rd  movement  io  prices 
aliiob  his  developed  ao  strongly  of  late.  What  effrot  tlie  loner  quota- 
li'^iu  for  Breadalufik  will  have  on  the  traffic  receipts  cannot  of  course 
tia  iI«termiDed,  It  h  clHinied,  however,  by  some  who  ura  usually  good 
j'.d2''s,  that  the  earnings  are  likely  to  show  a  le^a  percentage  of  increase 
during  the  rein»iniler  of  the  year,  fHrm«rs,  with  the  present  high  freij^hts 
and  luB  prices,  finding  it  iDore  profitable  to  feed  out  their  grain  and  send 
i'louarket  in  beef  and  pork.  This  feeling  may  increase,  and  of  neces- 
sity result  in  lower  fieiglits,  which  would  again  affect  uoirivorably  the 
eirnings.  But,  on  the  ottier  hand,  the  West  is  not  in  the  same  con- 
i!.;iun  it  was  a  few  yeais  Bince.  Ilouses  and  even  villngee  have  sprnng 
i';<  :ill  along  the  routes  of  liiesi:  roads,  so  that, the  looil  business  has  mul- 
iii'iUd  oiany  times  aud  is  destined  to  show  a  rapid  development  in  the 
I'tLire.  Besides,  after  a  time  we  may  nghily  expect  a  large  movement 
l'<>m  tlie  Pacibc,  which  will  impart  more  or  less  activity  to  all  coni.ecting 
■■■I'ei.  Some  anticipate  this  as  the  immediate  result  of  the  opening  of 
iLe  Pacific  road ;  we  do  not,  however.  It  will  take  time  to  change  ths 
cLjDDels  of  trade.  But  the  end  is  by  do  means  uncertain.  A  la^e 
sUre  of  the  Eastern  trade  and  travel  will  pass  across  our  continent  at 
su  very  dittant  day,  and  all  our  roads  leading  to  the  West  must  be  ben&- 
ii^]  by  it.  The  earnings  fur  March  and  the  total  of  each  road  since 
J^Dusry  1  are  as  follows: 


^«:T**sSrw««.■^::::::::::::::.::.: 

444.U3 

■^A^il^StS^i^u 

711,US 

*-h.>6ontiiern. .■.■.■.■;::"■":.■.■.■;:::!:;:: 

M.  Wiuk«  4  St.  PSBl 

lT.'"l)iirs,  Fi,  ^lyoB  AChlci'go"  "' i ! "  1  i 

1^491 

fao.iM 

:::::::::•■  M 

836,1*0 

aei,4in 

si 

-,..do,W,^*We.l.m 

ni.iernDnlon. 

::■::::::::  "S 

"SS 

310  MICHIGAN   SOUTHERN   AND    NORTHERN   INDIANA   RR.  [4P^f 

The  above  table  shows  tliat  tbe  improvemeDt  during  the  month  bar, 
been  on  every  road  in  the  list,  with  but  one  exception.  One  circumstance 
should,  bowever,  be  remembered,  and  that  is,  that  the  weather  during 
March  this  season  has  been  much  more  favorable  for  railroad  traffic  thsn 
tbe  correspond  ing  month  of  1868. 


»^^^*^*^^^^t^^^*^^0^^^0^0^0^0m 


niCfllGAlX  SOUTHERN  AND  NORTHERN  INDIANA  RAILROAD 

The  reports  of  this  Company  in  fullness  and  consequently  in  asefQln^>ss 
are  not  exceeded  by  those  of  any  other  Company  in  the  United  States, 
and  what  givts  additional  interest  to  them  is  the  promptness  of  tlieir 
publication.  The  Company's  fiscal  year  ends  with  February,  and  an 
elaborate  statement  of  the  year's  business  is  furnished  early  in  April, 
showin<r  that  the  managers  of  the  property  are  well  disposed  toward  thtir 
clients  and  desirous  that  their  affairs  should  not  remain  in  doubt  or  be 
misunderstood.  Tbe  comparative  returns  which  we  now  are  aMe  to  give 
will  therefore  be  of  the  highest  value  to  stockholders.  They  show  a 
yerv^  u:reat  increase  in  the  yearly  earnings,  and  the  Anal  balances  are  very 
satisfactory. 

The  lines  belonging  to  the  M.  S.  &  N.  I.  Company  are  as  follows: 

Toledo,  via  White  Pigeon  to  Chicag^o *«  T5 

Tol«  do,  via  Air  Line  to  E  kbart 133  » 

Toledo,  vi!i  Monroe  to  Detroit 64.T1 

Adn an  to  Monroe  Junction 9i0 

Adnun  to  J  ckson ..    4S.O0 

White  Pigecn  to  Conetantlne 4.JS 

In  several  instances  these  amounts  are  duplicated,  and  to  a  small  extent 
leased  or  rented :  again,  tbe  Constantino  branch  is  leased  to  tbe  St. 
Joseph  Valley  Company,  but  the  total  length  of  line  owned  by  the  M.S. 
&  N.  I.  Company  is  516.56  miles.  The  Company  also  owned  conjointly 
with  the  Rock  Island  Company  2.42  miles  of  road,  viz:  from  Juactioo 
into  Chicago.  The  length  of  side  track  on  the  Company's  lines  is  70.57 
miles.  The  trains  on  the  Detroit  line  pass  over  the  Detroit  and  Mil- 
waukee  Railroad  from   the  Junction,  3.21  miles  into  Detroit. 

Tue  equipment  of  the  roads  is  well  kept  up,  each  year  showing  « 
material  increase  in  the  number  of  cars.  The  substitution  of  new  and 
more  powerful  engines  has  also  given  increased  capacity  to  the  road, 
making  the  means  of  transportation  fully  equu  to  the  demands  of 
the  business  at  present  offering.  The  favorable  geographical  position 
of  the  several  lines  and  their  growing  business,  however,  will  at  no  dis- 
tant period  necessitate  the  laying  of  a  second  track  and  a  corresponding 
increa-e   in  rolling   stock.     The  number  of  engines  and  Oars  on  the  lines 


1860]  MICBIGAK    80UTHXRK  AND   KORTHSRN   INDIANA   RR.  311 

at  the  commeQcement  of  1865  and  the  close  of  1865-69   inclusive,  is 
shown  in  the  following  statement: 

Mar.  1,  r-— Close  of  Pebmary-' * 

1864.  1885.  1866.  1867.  168.  1869. 

L-'ComotiTM 86  97  08  101  99 

Passengtr  cais— 1ft  clase 69  61  69  64  65  78 

»d  c'aM  8  9  10  10  9  8 

Emigrant 6  4  4  5  44  18 

Biir?ajfe,  irmll  Ac Sa  S8  S8  S8  80  84 

Ni  jrarj,  drovew,  ^ 15  87  94  98  86  96 

Frti^lit— caboose 85  88  89  97 

tLtock. ,        96  170  185  914  888  88) 

Box 605  906  858  856  966  965 

Vm 881  859  890  8i7  880  821 

The  Company  also  own  a  full  assortment  of  wrecking,  tool  and  gravel 
cars,  <&c.  Of  the  passenger  cars  in  1869,  twenty  were  12-wheel  and 
eleven  sleeping;  and  of  the  latter,  throe  Wt-re  16  wheel,  six  12-wheel 
cars.  The  freight  cars,  with  the  exception  of  seven  old  8-ton  cars,  are  of 
10-ton  capacity.  It  is  no  exaggeration  to  state  that  the  car  capacity  of 
the  road  has  doubled  in  the  last  five  years. 

Tiie  **  Doings  in  Transportation,"  as  illustrated  by  the  mileage  of 
tr^ns,  passengers  and  freight,  and  the  earnings  from,  and  expenses  on 
sccoant  of,  operations,  are  shown  in  the  following  table  for  the  years 
ending  with  February,  1865-1869,  both  inclusive: 

miBS  RUN  BT  XRQlRn  WITH  TBAmS. 

:»US.  1866.  1867.  1868.  1S69|: 

Plffeoger TSS^g.'^  688,788  863,897  868,017  989,6^'* 

'Te'ght 1,161,619  1,181,5«9  1,S84,441  1,808,165  1,466.670 

outer 960.926  811,8;6  987,851  916,660  917,965 

Total 8,187,1^    9,181.615    8,886,198    8,887,889    8,667,191 

KUMBKK  or  FA88XlfOBR8  AMD  1IILB8  OF  TEAVKL. 

Westward 480,666  477,751  448,8'9  449,190  481,708 

EA-tward 400,799  487,734  489,809  409,9H8  4»0,948 

V-Joosb. 135.197  142,699  117,010  12V10  14),»67 

Ucai 696,168  779,776  789,658  7^4,078  781,584 

*^^i^i^M«^-^K^^  Ma^kA^^^^^i^^^  ^^^i^^^^^^i^^^  ^^^^^^um^a^m  ^B«te  ■      ^pb^mm^ 

Total. 831,866       916,475       846,698       819,188       999.551 

ThnMi^ travel (100 mUea).  ..'. 889,603       851,065       987,508       816,150       816,598 

Uical  «ATel  (lUO  mile^) 389.198       843,7-i9       987.781       ^87,776       805,066 

Total  tnTel  (100  mUea) 614,795       694,784      575,989       606,986       651,669 

lOKt  OF  FBBIOBT  AND  MILKS  OF  TRANSPORTATION. 

Tbreosfb— weatwmrd 68,088        78,608       106,716        91,658       199,966 

Tiiruajb— '  astwaxd 136,681       187,686       397.706       194,800       890,183 

Total  IhrDOgti 194,669       911,144       804.479       986,453       84i,899 

^iv.veafwa'd 108.891       190,884       160,967       177,681       900,489 

^•y-eaatward 9aj,941        837,869       244,376       871,464       8U8696 

ToUlway 383,831       868,196       895318       448,995       6  4.184 

^W>^^haBdwa? ••       697,601       669,810       699,7  5       785,43«       846,588 

V  ttnied  100  inil» Tr8,895       88J,449    1,07.',354    1,101,686    1,269,890 


312 


HICHIOAN   BOUTHERK   ARD   NORTHERN   INDIANA   RB. 


\Aprii, 


XAENIN08  FEOX,  AMD  KZPKNtXB  OF,  OPKftATIO»e. 


Passenger ^  $1,876,061  $9,091,947  $1,14Qjn7  tl.C8»49T  fl^m^BC 

Freight 9.943,779    9,450,408    9,6S1,«00    9,7^^9B0    tjmjm 

Other 171,489       909,795       941,SM       889,889      fl&JSO 

Total  eamingi $4^^445  $4,686,445  $4,878,198  $4,147,919  |«,0H,1«B 

Operating expenees 9,408,869    9,749,666    8063,706    9,868.887    9.918,(RS 

Netrevenne.: $1,881,118  $1,926,788  $1,600,487  $r^i)[m  $1,016,6.0 

Earnings  per   passenger 

permUe 9.76           9  86           8.09           1.80          9.64 

Earnings  per  ton  per  mile 9.88          9  90          9.60          9  48          9.34 

Expenses  to  earnings 66.14         68.61         66.66         60.88        &0.95 


The  general  results  of  the  years  1868-0,  as  shown  in  the  income  ae- 
count,  were  as  follows : 


Net  earnings $9,046,099  70 

Casb,  March  1, 1868 489,976  85 

Capital  stock,  increase 1,997.008  76 

Decrease  of  mpplies,  Ac 906,804  18 

169  8.  F.  bonds,  nsed  for  sinking 
ftind 169,00000 


Total $4,901,904  48 


Interest  on  bonds $616,690  95 

Rent  Erie  and  Kal.RR 80.000  00 

i  axes.  State  A  National  16t,5T3  16 

Contribution  to  sk V  ftind IG^jMN)  CO 

I-  terest  and  exchange 8^15  58 

DiT.  lOp.c.  onaaar  sto  k 68.850  00 

**   8  p.  c.  on  com.  stock 997,756^ 

Construction 408,886  £3 

Bqaipment • 199,790  08 

D.  U.  &  Toledo  stock 400  00 

Prem.  on  con v.of  goar  Btc*k 15.810  00 

Back  dividends. 1^00 

Cin.,     Pern     A     Chicago    Vda 

extinguished  in  stock 195.000  00 

Old  claims  paid  in  stock 17,48817 

Stock  nlT.  10  p.  c  A  tax 1,077,991  OS 

Caeh,  March  1, 18G8 879,859  03 

'   Total  .: $4^901,904  4S 


The    financial  condition  of    the  company   as  given  on  the   balance 
sheets  of  March  1, 1865-60,  inclusive,  is  shown  in  the  following  abstract : 

18''6.    1866.    1867.    1988.    1889. 

$                $  $                $                $ 

Stock-cr  mmon            7,686,600   0,881.800  9,818.600  10,060,400  11,509,100 

»•        eua.anleed 9  188,600    1,08»,700  787.7J0      .\8\800      533,t09 

Fundeddebt 8,564,115    8,587,176  9,185.840    9,038,640    8LgS«»,fi80 

BUspiyabe.  85000      £S5,0C0        84,183        

Due  for  gnaianteed  stock 850,078  

Dividends  and  coupons 48,896       96,864  918,117        8%071        9^Si» 

Opvratine  sccouiit* 881,t96      809,107  4S4,701       984,4U6       90^.3^ 

Profltandloss 610,979       868,131 

Total 18^004,917  19,619^90,473,911  90,769,587  91;U3,063 

Against  which  amounts  are  charged  the  following,  viz  : 

Railroad 18,610,18818,619.185  14,888,663  14.654.881  1M^159 

Equipment 1.644.969    1,644,S69    2,t«a.6l7    9,86B»817   S.(fiS.607 

DM.  ATuledoRH  Co 1,9»:,968    l,991,v68    1,S91 968    l,«n,96fc    l,991.9l>S 

D.M.  A  Toledo  Stock 406,800      409,600      40%500      411.700       4194J0 

Permanent  property 16^969^919  16,964,919  18,734,548  19,994,866  9Qi,898,SM 

Fuel  and  material 670,878  647,095  rM,598  785,436      484,687 

Available  asseto 409,086  900,959  6^6,767  799.7«8       73U,19d 

Nominal  assets 79,656  158,000  15{.00a          8,000        

Profltandloss ..^ 686,940  1,802,447  483,148        

Total 18,994,917  19,679,646  9oi4'n,971  90,7tt,597  9S,1UC£3 


1S6S]  RAILROADB  or  PBFNSTI.TAMIA. 

The  fDiided  debt,  u  above  comprises  the  followiog  iBBues : 


W-S.iMio*.  •«      1.000     

!<).-»,  Aug.,  "fll 8,W0  4/00          4,OJ0 

E.  <t  E.  Ts^liar  , 'U «8,iW  Sl.OUi          .... 

J.  Br.1«,  A.aa.,'ttS.  71,000 

n  Tb.  Ati«., '68 089,000  BSt.OOO       651,000 


taui   iu,  aii^,, -DO...... oav.uuu     ooi.uuu  ui.mnj      imi,uuu          a,<Aiu 

M.  A  Toledo?*,  Feb.. 'W  7gl.<JU0     7H00O  031.000      eu.OOO      ei4,C0a 

iren.  mort.  T>.  Maj, 'B3 S.lOO.OU'i  S.HIi.tiW  O.OSi.iW)    8.001,OI»    fl,Ti«.OOD 

ccD.  morl.  7a,  Nov.  Tl. S.IOVMO  MSiBOO  S,6B3,000   S,6ea.0UO   »,6B8,O0U 

I.T^Ian i.otio      i.ooi      

Ip a,*lB        i,fi7S  840            wo            5S0 


Toui s,<e8.:is  >,u4,t7e  i(r,iM,840  io.8i3,uo  io,3isjs(n 

Tbe  commissi  oners  of  the  nokiog  fund  for  tba  Ist  gaoeral  mortgage 
held  March  1,  1669,  Mid  bonds  to  tbe  amount  of  (1,472,000.  The 
lam  of  bonds  shoim  in  balaoce  sheet  is  less  by  this  amount.  The  prices 
of  the  common  stock  of  tliis  company  hare  ranged  from  7  in  1860  to 
113  in  1863.  Tbe  monthly  range  of  prices  in  the  New  York  Market 
duriog  tbe  last  6ye  years  is  shown  in  the  following  labulation : 


J-nnirr MVaW         81    a  TB       MK®  T3X  ®  Sl«      8S    ^  aSX 

F-M-.WI 68?.'aM        6S>i(a7*       Baj4!4  Tl\  ;a  ISM      SSJC®  M 

Hirch 08    ®118K      WKam       6A\&Slii  MI'M     STX®  9»K 

Aptu 8«)(©:i8,"(    6o«(a  Ti«  7a  stioi  .®  7it<    bs  a  «« 

M.J eawSiooji    m  ots;*  tv  asiw         ffl70}i    8s«aoi« 

J=t« Mxa'OI  BT    &K%  78«fa  BOX  ^19>i  e91(@W)t 

J37 9i\IS,9iX  61    ft  so  78,','l3Hi^  ®eil<  F8IU19SS 

ABTQit MxaWS  eoifSBTK  84    «  MX  Stt  84?i  81    ®  88X 

>«p-ember 7i    a  85  Sssa  TOX  WXJi  SI  :©  81«  M    (a  SBJf 

Ocl-.her B7   a  T1X  68    ffl  84«  am®  83  'Bt  64X  MXSH'l 

>ovmib^ 68V®  7TX  TIX®  85  7si({a  M  a  81  eo    a  BO 

Sectmba <IS>i&'liTi  'iSK&  16)4  79    ^  S3  ®  SSX  8t3>i®  SOX 

Teu » R   dllSV     4B\®81X    65X®101        MM&  8JX      80    ®H 

Tbe  guaranteed  stock,  nhicb  sold  at  17  in  1B60,  attained  to  165  in 
1E65.  In  tbe  latter  year,  however,  it  oarried  accuniuUled  interest.  In 
1B63  only  one  sale  of  this  stock  was  made  at  New  York,  and  that  at  110. 
Ni  sales  appear  on  the  official  lists  for  1867  or  1863. 


RAIbSOASS  OF  PENNSTLriNIA. 

The  table  on  the  following  psge  furnisliea  a  complete  abstract  of  the  prin- 
cipal items  of  itt^rest  relating  to  the  rmlroad«  of  Pannsylvania,  con- 
Udaed  in  tfa«  Report  of  the  Auditor  of  that  State,  lately  publish'iU.  Tb« 
reports  are  made  for  tbe  year  ending  October  31,  1868. 


UlLROADa  or  PERKSTLTAKU. 


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lUILROlDS  OF  PBNBeXLV^XIA. 

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316 


PUBUO   DKBT   OF  THB  UKITBD  STATU. 


[AprU, 


PUBLIC  DBBT  OF  TIE  DNITBD  mTKS. 

Abfi^ract  statement,  as  appears  from  the  books  and  Treasurer  retarns  in  the 
Treasury  Department,  on  the  Ist  of  March,  and  Ist  of  April,  1869 : 


DKBT  BSABIHB  OOXX  IXTXBMT. 

March  1.  April  1 . 

6perconi.bondB $SS1,68Q,800  00  $«l.fi8»,a00  00 

e       ''         1881 a88,677«400  00     S88,(ni,400  00 

6       '*         (6-90*8) 1,(K»,687,S60  00  l,e0a,60B,OBO  00 


Increaie. 
$ 

«  •  •  •  •  •  « 

ti,«00  00 
tt,0OOOO 


Total 2,107,864,050  00  S,10T,S76,850  CO 

DXBT  BBABINB  OUBBBXCT  IHTBBBST. 

eperct.(R&.)bondB $5S,0S7,000  00    |8«.8BS,S10  00  $S,nS,8n  00 


Sb.  cent,  certificates. 
Z^vyl'en.F'dSp.c. 


ff7,14O,000  00      64,009,000  00 
14,000,000  00      14,000,000  00 


}•  •••••«^ 


Total 196,On,000  00    1SS,467,8»  00     880,8M  00      $. 


MATUBBD  DBBT  HOT  raaMMKTKD  VOB  FATXBBT. 

7-80  B.  dae  Aug.  15,  *67,  J'e    A  J'y 

16, '69 7 $1,610,860  00 

6  p.c.  comp.  int.  Dotea  matM  Jane  10, 

J*ly  16,  Aug.  16  Oct  16,  Dec  1», 

1807,  May  IS,  Aog.  1,  Bept.  1  Jb  l^ 

and  Oct.  1 A 16, 1868. 

B*daof  Tezaa  Ind'ty 


$1,688,100  00   $ $18S,»«I 


Treasury  notes  (old).. 

B'ds  of  Apr.  16, 1818,  Jan.  S8, 1847  A 

Mar.81,  1848 • 

Treas.  n  BofMa.8,68 

Temporazy  loan 

CertLd.  of  indebt'eaa 


8,49S,4Q0  00 
S66,0ii0  00 
148,4U  64 


8,S90,690  00     S01,O(» 

4,0001 

40000 


S09,800  00 
87d,48S00 
168,010  00 


868,000  00 
148,011  64 

188,900  00 

860,109  00 

188,610  00 

18,000  00 


1I,«0000 

16,^40  00 

600  00 


Total. 


6,482,468  04        6,003,408  64    $ $41'<MM000 

DBBT  BBABIXG  HO  XKTBBZST. 

United  States  notes $866,031,078  00  $866,06M65  00  $14,068  00      S 

Fractional  currency 86.781,647  60      86,676,88)  00         105,71790 

Gold  certi.  of  deposit 88,176,660  00      8i,67i,60J  00         7,luS,oa)iA 


Total   481,678,180  60  •  414,418,486  00 

BBGIPITUL^TIOX. 

$ $ 


...$7,161,095  30 


82,000  00 
880,880  00 


Bearing  coin  interest 8,107,8  >4,060  00  8,107,876,650  00 

Bearing  cur'y  Interest 126,077,000  00     126,467,820  00 

Matureddebt 6,428,468  64         6,008,40864      419,00000 

Bearing  no  interest 421,678,180  60    414,418,486  00      T.16<,«B  50 

te 8,6«0,»81,6m14  8,658,750,858  64       7,ls0,885  50 

cor.inTreaa i:5,59«,789  76    lll,00^9»8.fi4     4,e8S,wa 


Com  Ac 

Debt  leaa  coin  and  cnrroney 8,645,886,904  88  8,648,744,856 10     2,59i.0tf  tf 

The  following  statement  shows  the  amooot  of  coin  and  carrency  separately  it 
the  dates  in  the  forgoing  table : 

OOUr  ABD  OUBBBXCT  IN  TBBASUBT. 

Coin $98,741,260  79  $101,908,865  12:6,468,10440    $ -- 

Currency... 16,858,529  04        6,802,628  41     10,050.200  0 

Total  coin  Jb  curacy 115,694,789  76     111,105,998  51      4,588,1060 

The  aDDoal  interest  payable  on  the  debt,  as  existing  March  1  and  April  i, 
ISCdt  compares  as  follows  . 

ANNUAL  INTBaiST  PATABLB    ON    PI7BU0   DBBT. 


March  1.  April  1. 

Gotfn-6  per  cents $11,079,465  00  $11,079,466  00 

6    »*     1881 17,090,64400  17,020,644  00 

6    ''     (5.20'b) 96,156,84100  0a,156,»^  00 


Increase. 
$ 

•  •  •  •     •  • 

1,860  00 

$1,84  00 
114,919  80 


DeCNiN 
I 


Total  coin  interest $184,255,860  00  $184,256,706  00 

airrw?cy~6percenU $8,886.220  00     $8,861,189  80      — , ^-,,. 

"          8        »'        8,184,800  00       S,058,:60  00          76,030^ 

Total  currency  inter't $5,870,480  00    $6,409,88o'aO  $38,869  80  $ 


Anjrast 2.000 

September 1,600 

October 1,600 

November S,363 

December l,t>64 

Totol  Flask. •...  S5,0i8 


1869]  QUIOKSILYER  MINIKa   OOHPANT.  817 

QUICKSILTBR  H15I5G  COOfPAST. 

Tbe  fcUowiog  report  of  the  operations  of  the  company  for  the  year  1868,  shows 
that  the  prodaciion  of  qnicksiWer  from  the  New  Almaden  minee,  daring  the  year 
1868,  was  25,628  flaaks  of  16^  Ibe.  each,  being  a  monthly  average  of  2,186  flaskn. 

The  prodoctioo  for  each  of  the  months  was  as  follows : 

Jarnary , 8,000 

February... 8,001 

March » 2,601 

April 2.0110 

>l.iy 2,000 

June 2,000 

JuJj 2,000 

The  operatiooe  of  the  company  far  the  disposal  of  quicksilver  daring  the  first  three 
moothe  of  the  year,  were  carried  on  under  the  Barron  contract  of  1866.  This 
contract  expired  by  limitation  on  the  81st  d%j  of  March  last^  at  which  time  the 
company  had  on  ban  i  a  snrplns  of  7,416  flasks  of  qaicksilver.  Mr.  Barron  declined 
to  renew  this,  or  to  make  any  contract  for  the  direct  purchase  of  the  quicksilver 
from  the  company ;  and  it  became  evident  to  the  Directors  that  either  a  combination 
arrangement  moat  be  made  with  other  producers  of  qaicksilver  in  California,  or  a 
cofflpetitioo  for  the  aale  of  quicksilver  in  the  home  and  foreign  markets  would  ensne* 
whidi  could  no{  fail  to  lower  the  price  of  the. article  and  seriously  injure,  if  not  entirely 
destroy,  all  profits  incident  to  its  mining  and  manufacture. 

After  eonsiderable  negotiation,  an  arrangement  for  tjro  years,  from  April  1,  1868 
was  entered  into  between  the  aeveral  quicksilver  mining  companies  and  Messrs.  Bar- 
ren A  Co.,  of  San  Francisco,  which  was  duly  ratified  by  tbe  Board  of  Directors. 

This  agreement  was  made  between  the  followiog  parties : — The  Quicksilver 
Kisxog  Company  of  New  Ycrk,  of  the  first  part ;  The  Redington  Quicksilver  Mining 
Company  of  California,  of  the  second  part ;  Tbe  New  Idria  Quicksilver  Mining  Con:« 
pAoy  of  California,  of  the  third  part ;  and  Messrs.  Barron  &  Co.,  of  San  Francisco^ 
of  the  fourth  part.  It  recited  that  the  parties  thereto  had  united  for  the  purpose  of 
regulating,  through  the  agency  of  the  parties  of  tbe  fourth  part,  the  supply  to  the 
markets  of  the  world,  of  quicksilver,  the  product  of  the  mines  of  the  parties  of  the 
first,  second  and  thurd  parts,  for  the  peiiod  of  two  years,  from  and  after  the  first  day 
of  April,  1868. 

This  agreement  specifies  and  limits  the  production  of  the  several  mfniug  com« 

paoies,  as  near  as  may  be,  i  i  equal  montbly  amount?,  to  the  following  quantities  : 

*)  h^  OalcksUTer  Mtring  Company       24,000  flasks  aminaUy. 

TheKedingtonQQickairverMliiini^Company... 10,000       "  *• 

Tile  New  Juris  Qaickailver  Mining  Company 10,000       *'  *' 

Hakiog  an  aggregate  of 44,o:0      *'         '* 

—with  a  provision  that,  in  case  either  party  shall  fail  to  furnish  its  proportion  of  the 
total  quantity  allotted,  the  others  may  proportionate  y  make  up  any  deficiency 

It  also  made  provision  fur  Uie  purchase  of  all  the  qu'ckeilver  then  on  hand  in  Cali- 
fornia an  I  N«!va'a«  owned  by  the  several  parties  to  the  agreetnent. 

It  aleo  provides  for  the  purchase  and  sale  by  Messrs.  Oarroo  A  Co.,  for  the  use  and 
benefit  of  the  combination,  of  the  products  of  any  other  quicksilver  mines  in  Cali- 
fiwnia  or  elsewhere.  And  under  this  section  arraogemeuts  have  been  made  for  the 
product  of  the  Santa  Olara  Mining  Association,  the  San  Juan  Bautbta  Mining  Com- 
psny,  and  the  Fliceniz  Quicks'lver  Company. 

At  the  close  of  the  contract  the  quicksilver  on  hand  in  C&lifo,  ina  is  to  be  divided 
between  the  companies,  in  the  proporti}T)8  in  whicj  the  same  shall  have  been  de- 
Uvered ;  and  the  stock  in  other  markets  shall  be  closed  out  and  accoanted  for  by 
Ike  agents,  m  accordance  with  the  contract. 


318  QUICK6ILVXR  HIKlNa   COHPAKr.  [-^^^ 

All  advanees,  paymeote  penaltlM  and  aeooaots  are  to  be  made  and  kept  opeaa 
gold  eoio  basis,  an  i  the  books  of  accouot  of  the  said  ageocj  shall  be  always  opea  to 
the  iaspectioQ  and  ezazniDatiun  of  the  other  parties  to  the  agreemeot.  Aoydiflier- 
ences  arising  between  the  partiea  eha'>1  bo  deternained  by  arbitratior. 

The  proceeds  of  sales  of  quicksilver  for  the  year  were  aa  follows  : 

ProceedB  of  10,485  flaske,  sold  prior  to  April  1st,  under  the  Barren  contract,  No. 

1,at$3i» 1312,00000 

Proceeds  of  5,066  flaeke,  sold  from  April  Ist  to  December  81st,  uoder  Combination 

cnrct 182,9071 

Quicksilver  Mloins;  Company^s  proportion  of  profit  in  pnrchaae  and  sale,  by  Com* 

biuati  n of  2.704  flaakd ^^^,,.,     1V>4« 

Tjui tmsicoa 

The  financial  condition  of  the  company,  as  it  existed  on  the  3 let  daj  of  Deeembcr, 
1868,  may  be  thus  briefly  stated  : 

LIABILITIBS. 

Advances  upon  Qaicksilrer,  bearing  interest  at  6  per  cent,  19,486  flasks,  $88  per 
flftsk  ...  $448,17800 

Call  loans  and  bills  payable  in  Ca  Ifomla,  less  cash  and  bUls  recelTable,  bearing  in- 
terei»i  at  one  per  ccni  monthly 168,110  79 

Bills  pay 4. ble  in  New  Yoik,  in  ere^t  at  seven  per  cent,  currency 13,000  00 

ASSETS. 

10,486  flaslts  «  f  Quick*  ilver  in  agents  hands,  at  present  cash  ralne,  $88  00 640,0%  00 

Workiug  capital  coDsSfiting  of  o  e  extracted,  materials  and  mlBcellanuoos  property 
at  the  mlues  not  appertaining  to  the  real  esiaie  or  covered  by  mortgage,  as  per 
iuveiitory 118,818  IS 

The  total  value  of  (he  real  estate,  with  improvements,  and  all  peraooal  property 
at  New  Almaden,aDd  in  an  Francisco,  belonging  to  the  company,  ezciadiog  the  mine, 
but  including  the  items  above  specified  among  the  assets,  amoanta,  by  the  inventory 
returned  to  the  company  December  8 Ist,  to  the  sam  of  $672,175  96. 

By  an  examination  of  these  accounts,  it  will  appear  that  at  $38  per  flaak  for  the 
remaining  stock  of  quicksilver  unsold  (the  average  price  for  that  sold  under  existing 
contract  having  equalled  $  -/6  per  flask),  the  financial  condition  of  the  company  ia  im 
proved  $148,979  28  since  December  81, 1867,  of  which  $60,01S  were  paid  in  settle- 
ment of  the  HepDuiu  c!aim,  to  perfect  the  title  to  the  property. 

BALANOS  SHXBT,  DEOIMBia   81  ST. 

Gold.  Cnrr^iWT. 

Conv-rtlble  bond  stock $ $14!  OOO  iO 

Real  eatiite  mining  property,  etc 4St,S90     1,159,1^95,645  17 

Houses  and  lands IfiO.SOT  80         

Railroad » 85,856  00  

Furnacoa 117,600  CO  

Macnintfry  and  tools • 44,ti6:t  n&         

Mater  ala and  S'pplies 129!)2t70  

MJBcellai  eouB  property 16.808  10  l,a0  QO 

Orea'couni a^?*!©!  

Qa  ckailvi  r,  19  486  flaakt.  at  $30 684,580(0  

(:».  F.  Forest, Treasurer 86  61  l«8i<  39 

Total $i,809^99   $10,083,967  56 

CapltalBtock • $ $10,000,000  00 

Firrt  Mortgage  Bonds 6<iO,U0O(0         

Second      *•  "        1,000,0  0  00  

B.  F   Bntterworth,  Manager 

Advance  Account $448,178  00}        R-maoAtu 

CallLoans lOS.lWJOf       «*«»»*  ^         

Draft  accoant 2,000  10  

Bllia  payable. S6.CO00) 

Income  account 190,748  90  18,9S7  66 

Total $2,809,(42  99   $10,038,967  S6 

WoaaiNG  ACOOUHT. 

Ezpeniet.  Gold. 

Min*"  payroll $310.274  53 

Ha' ieiida  payroll 4&,8ttC!«>i 

M  BcellaneoQS  expenses.... 4Q.8M  14 

Working  Supplies 106,213  27 


1809]  8UITB   AlfD   PARMAIKB   OOL0   COMPAKT.  819 

SMITH  &  PARMALEE  GOLD  COMPAflTT. 

A  report  of  the  affairB  of  this  compaoy  states  : 

**  The  Trastees,  id  eotering  upon  their  duties  in  Janoary  last,  deeme-^  it  important 
to  prepare  as  soon  as  possible  a  brief  statemtnt  of  the  cooditioD  in  which  they  foaod 
the  property  and  fioances  of  the  company.  This  they  have  now  d>  ne,  and  hereby 
communicate  the  reeult  for  your  information.  The  financial  statement  is  brought 
up  to  February  1st,  1869,  when  their  new  agent  took  charge  of  the  mine:>,  and 
covers  a  period  of  five  years  from  the  organisaton  of  the  company. 

The  leading  facts  presented  by  this  statement  are  as  follows : 

That  taking  the  fire  years  together,  the  receipts  from  the  mines  hare  been  lest 
than  the  expenses  by  $122,248  85,  or  an  arerage  loss  of  about  $24,000  a  year. 

That  while  the  entire  proceeds  of  the  sale  of  the  Treasury  Stock — lees  the  divi- 
dend of  $42,900  paid  in  1864,  ($23,8t0  to  the  then  Trustees  themselves,)  there  is 
lUll  a  balance  of  indebtedness  of  the  date  of  1st  February  last,  of  $1 8,80 1  88,  and 
also  farther  liabilities  assertained  and  contingent  (  r  in  suit)  for  the  purchase  in 
part  of  the  New  York  Gold  Company  of  Colorado,  min'ng  property  of  $29,744  more, 
amountiofl:  all  to  $48,046  83. 

That  the  problem  of  the  possible  profitable  wording  of  the  Mines,  by  the  present 
machinery,  remaining  unsolved,  and  yet  to  be  demonstrate  ),Bome  provif-ir>n  must  be  at 
once  made  by  a  preferred  stock  or  mortgage,  not  only  to  aeet  the  present  in  Jebted- 
nes«,of  some  $48,000,  but  for  the  further  sum  of  $86,000,  to  put  the  mining  works 
and  machinery  in  good  working  order,  and  provide  an  adequate  wot  king  capital  ibr 
their  important  bosinese  operations.** 

Financial  StatemerU  February  Itt,  1869. 


VZRnrO      AOOOUICT       FB01'SB--XZPllfDITUBXB, 
riVB  TKAKS. 

Machioery  and   mining  4 

jearaaDd  11  months $601,645  Sfi 

Pajwento  In  New  York ^,411  0^ 

Eri>enB?e  for  Jan  ,  1869    2U,&69  S3 

liabilities  oatstaadiog  let 

Feb.,lo69    26,085    S 

Total $676,671  28 


BKCEIFTB. 

Frrm  mines,  4  years  11  moDths...  $634,616  03 
"         "       &  ca^h  c  edit 

January 10,187  72 

Re>8a1o  of  old  macMucry y.U25  18 


$554,4S7  8S 


DefldtorlosB $122,348  86 


TBSASUBT  STOCK  AOOOimT. 

Beceipts  from  sale  of  Stock,  1864 $61,6*26  12 

**  "  ••        "       18«« «3,«)43  68 

*•         "  "       "       18«8 25,778  65   $14n,858  46 

I^rotUonTreasirynotes,  Ac 9,054  CO 


$149,407  45 


PATXXKTB. 


IwodlYldend8(l864) $42,940  00 

COWfcharcsBtock 2,625  48 


$46,465  43   $108,943  02 


AmcnmtorilabUltles  above  frrm  receipts  all  sources..— $1^901  S3 

JJptesglTen  for  New  YorkCompany  property  »,744.00 

^''•"M  now  in  suit 20,000  00 

Amount  of  indebtedness  ascertained  and  contingent $48,045  83 

^or  repair,  ot  mill  and  workinif  capital 85,000  00 

$88,045  83 

^'^'^^(cipltal  stock,  160,000  shares  of  $20  each $3,200,000 


aio 


JOVRVIL  OF  BANKING,  OCRBBNOr,  AND   VINANOX.  [Apiil^ 


JOURNAL  OF  BANKING,  CURRENCY,  AND  FINANCE. 


««^^*^h^k^h^h^h^^^^ti^k^Mi^h^«^«^«A^i^h^h^ 


Retains  of  the  Kew  York,  PhiladelplilA  and  Boaton  Bankf. 
Below  we  give  the  returns  of  the  Banks  of  the  three  cities  since  Jan.  1 : 


KEM  TOSK  CITT  BJLVX  BBTTTBSV. 


Date. 

Janaary  f ... 
January  9... 
Janaary  16.. 
January  S3.. 
Jannary  CO. . 
February  B. 
February  18. 
February  »i. 
February  27. 

March  tt 

March  18.... 
jMarch  90.... 
March  97.... 


Loanet. 
.f959,(lfK),0-57 
.  8S8.792.MS 
.  963.888,881 
.  S64,H64,6;9 
.  263»171,109 
.  9A6,M1,781 
.  864.880,407 
.  968,498,061 
.  9ftl.871,897 
969,089,888 
.  961,><69,695 
.  368.098,809 
.  868,999,689 


Specie. 
$80J8(t,199 
97,884.780 
99,268,686 
98,864,197 
97.784,998 
97,989,404 
&\864,&n 

90,889,603 
19,486,634 
17,858,671 
16.-2l3i,806 
12,018,794 


Clrcul'tlon. 

$84,8T9,C09 
84,844,156 
34,979,158 
81,966,946 
84,981,156 
S4,946,4S6 
84,968,451 
34,947,891 
34,947  981 
84,975,886 
84,680,445 
84,741810 
34,777,814 


Deposits. 
$160,490,446 
187,906,589 
196,484,843 
197,101,168 
196,966,469 
196,603,899 
199,977,860 
187,619  546 
186,916,175 
189,604,487 
1^9.899,468 
188,504,999 
180,118,910 


L.  Tend'B. 

$48,606,491 
61,141,198 
59.077,068 
54,082,119 
54  747,569 
58.4i4,188 
59,884.«59 
00,997,197 
50.885.064 
49.146,860 
4'J,6S»,69> 
60,774,874 
60,565,103 


:.  dcar'n. 
SOtnB 


Ajt.d( 
TOl,7n,()61 
671,984^ 

ooi,8r,»< 

670SSI,4n 
690,154,4» 
n7,tOI,9» 

5M,tnC,l81 

7fr,iffl.m 

780,710,001 
n7,98T,48B 


PIULISXLPHIA  BIVK  BSTUBNI. 


Date.  'liOana.  Specie. 

Jannaiy4 $61,716,999  $859,483 

January  11 <51,649,987  544,691 

January  18 59, 1 99,733  478,469 

Janu-ry95 69.537,016  4118^ 

Febuaryl 59,639818  .')>9,78i 

PibruaryS  53,059,716  8rr,0U 

Febin  ryl« 59,999,891  104,681 

February  99 69,416.146  901,807 

March  1 59.261,851  956.983 

MarcH 59,9a»,000  997,887 

March  15 51,H11,6S9  977,5:7 

March  99 51,828,419  945.097 

March99 CO.697,100  910,644 


Lagal  Tenders. 
$18  9:0,887 
18,49K109 
18,799,493 
14,054,870 
14,996,570 
18,785.596 
38,578,048 
33,906,607 
18,010,606 
18  958L901 
18.098,9(^ 
19,766,759 
18,091,816 


BOfiTOH  BA3X1L  BXTUBNB. 


(CapiUl 

Date.  Loan  a. 

J4nni»ry4 $96.493.M4 

January  11 100,727,0«  -7 

January  18 109,905,309 

Jann«.ry96 109,969,949 

February  1 10d,6M),i5') 

Februarys 104,349,495 

February  15 108,915.084 

February  98 109,352,689 

March  1 101,809,689 

March  8 101.495,»32 

March  15 100.890,808 

March99 99,658,81/> 

Miirch99 99,670,9^ 


Jan.  1,  1666,  $41,900,000.) 

Specie.     Lega!  Tenders. 
$19,988,889 


$9,908,401 
8,075,844 
9,6'37,f)S8 
9,894,7W) 
9,161,984 
9,078,908 
1.845,994 
1,545,418 
1,988,986 
1,997,599 
1917,815 
1,880,864 
987,769 


19.864,700 
19,999,897 
18,996,874 
19,964.995 
19,459,796 
11,649,(66 
11,960,790 
11,900,149 
10,985,979 
10,869,188 
10,490.448 
11,646,999 


Deposits. 
$88,191,093 
88,76&.611 
39.695,156 
)9,5S&,469 
99,677,943 
40.0eOS99 
38,711,575 
87,990,986 
87,786,905 
88,998,956 
87,57i>,58t 
€6,96(>,U09 
86,863,344 


Deposits. 
$37,538,767 
88.089i»l 
30,717,198 
a8.66:,74T 
40,998,461 
89,693,867 
87,750,729 
3ft,898,814 
8^««0,466 
85.&SS,680 
84,061,716 
89,641.067 
89,980,480 


drculatios. 
$10,581,^9 
30,59^S» 
10,596  !<» 
10.K>t9:4 
10.5M.31 
10,5ffi.SSS 
30.J8<.« 
10,45«.545 
10,458.&4« 
10,458.963 
S0,459,(« 
10,46l,4W 
10,4W,4» 


Cixcolatioii. 

$]^l5l,»s 

96Jffi,6s1 
95,9IMI 

96,9S9.»0 

9B,80M»* 
95,886^ 

SbMH 

96^9B44(A 


T  I!  R 


JIERCHANTS'    MAGAZINE 


AND 


COMMERCIAL     ftfiVlEW 


m^^^^m^^^fi^^i^^0^f^^0^^^^^0m^^0^0^^^0^^^t^ 


MAY,     1  8  6  0* 


ns  BECLDIB  IN   BREAOSTUFFS  ARD  TIB   GENERAL  TRAD3   OF  TBI 

COUNTRT. 

The  late  heavy  decline  in  the  value  of  bread8tiifl*8,  though  attended 
with  results  not  immediately  welcome  to  some  interests,  is  yet  one  of  the 
moat  auspicious  features  connected  with  our  national  industries  that  has 
occurred  since  the  war.  High  prices  of  food  mean  high  prices  for  pro- 
ducts generally;  for  the  reason  that  the  cost  of  human  sustentation  regu. 
lates  the  cost  of  labor,  and  the  cost  of  labor  determines  that  of  products. 
While,  therefore,  food  was  high,  we  could  not  have  a  healthy  condition  in 
the  industries  at  large.  Natural  law,  however,  ultimately  adjusts  all  in- 
dustrial irregularities ;  and  the  late  high  prices  of  grain  were  infallibly 
prophetic  of  the  lower  prices  we  have  now  reached.  If  the  war  withdrew 
an  Qudue  proportion  of  population  from  the  agricultural  cla  i  rendering 
farm  labor  scarce  and  the  crops  light;  the  consequent  high  prices  of  grain 
made  agriculture  excaptionally  profitable,  inviting  labor  from  less  remun. 

1 


322  TBS  DSOLIHX  IN   BRXAD8TUFF8.  [JKlfr, 

erati?d  empIojmenU,  and  attracting  immigration  from  other  covnlries. 
Tbe  rapidity  with  which  this  process  baa  worked  out  conspicuous  results 
is  beyond  what  was  generally  aoticipated,  and  illustrates  the  safety  with 
which  natural  causes  may  be  trusted  to  remedy  irregular  xiiovenients  b 
production  and  commerce.  The  following  comparison  will  sliow  the  de- 
cline in  the  prices  of  breadstuff^  at  New  Toik  wiihin  the  last  tvehe 
months : 

Koiir—                                                                                        1»».  IJW 

Mip.^rllBe Vbbl.fS  Adit  5  60  ft-fOSlOW 

BzranAie 5  7C^  6  15  lO^^iOK 

Bh  pp  ng  roand boo  •  (  h o 5  ftt^  6  40  lOSO  iOt0 

EztM  ««es<ern,roin    ou  two  d 5  7(^6  00  luU^USo 

Donhltt  Sx  m  WeiiMm  and  St.  LkuIs 6  65ttll  SS  llT&^tflM 

BonUi'^rn  SQD  rt tt  sr^  6  55  10  4<#>ltt 

Boutbern.  exiTA and fAinlly 7  00^11  iS  ll«ai5>S 

Caifonla 7  uSlO  OQ  lfr#490 

Bye    lonr.  An >  at d  saperflne 4  7^570  S^Sd^U 

Obra  i^ea 4  90^4  75  5l'd<S$ 

Wheat,  s  mz per  bn  h.  1  le^  1  4t  a4d<7« 

Bed  Wl  tar 1  aoS  1  50  ..   ^tldS 

Amber  d>     1  7<^  1  7i  9M9$«I 

W  ito 1  (fsSsOO  SOftS*! 

Ck>rn,  Western  mixed 88^     M  ll'^ni 

Yellow .       86^....  l«©ni 

"White HA     88  11*®  n« 

w^e 1  anS  1  85  %(i^i^ 

Oat#,  Western  caigoes  new 7id     19  ^^   ^ 

It  v^ill  be  seen  from  this  comparison  that  flour  and  wheat  are  but  Iittl« 
Biore  than  one-half  the  price  of  a  year  ago;  while  other  kinds  of  graic 
also  are  very  much  lower.  In  passing,  we  may  remind  our  readers  of  cer- 
tain suggestions  we  made  last  Fall,  condemnatory  of  the  Western  faaUt 
of  holding  back  grain  before  the  close  of  navigation,  in  hope  of  tbercbj 
exacting  higher  prices  from  Eastern  and  European  consumers.  The  ev^ni 
has  proved,  as  we  foreshadowed,  that  the  East  would  live  upon  its  limits 
winter  supplies  and  wait  for  the  spring  to  determine  its  own  prices:  ana 
that  Europe  also  would  be  equally  able  to  wait ;  while  the  West  wodM, 
in  the  mean  time,  be  embarrassed  by  carrying  a  heavy  load  of  prodace 
and  its  deialers  loae  heavily  by  a  decline  in  prices.  It  remaius  to  he  ^eec 
whether  prices  are  not,  at  the  moment,  exceptionally  depressed.  There 
is  not,  however,  any  very  obvious  reason  for  anticipating  any  important  re- 
action. The  class  of  causes  which  have  operated  to  increase  the  prodofi^ 
tion  of  grain  in  this  country  have  been  equaHy  influential  in  all  thegnia 
growing  countries  of  the  world ;  and  it  is  reasonable  to  assume  that  tbe!« 
is  now  a  larger  area  of  land  ai*d  a  larger  amount  of  labor  devoted  to  t]i« 
production  of  grain  than  perhaps  at  any  former  period ;  so  that,  only  io 
the  event  of  adverse  seasons,  may  we  anttcipate  a  falling  off  in  the  yield. 
So  far  as  respects  the  United  States,  the  weather  has  thus  far  been  favo^ 
able  and  reports  indicate  the  probability  of  ample  crops.  It  is  true  tbst 
the  farmer  has  to  pay  as  h'gh  ptices  for  labor,  with  wheat  at  $1  35  per 
buBhel,  as  when  he  obtained  $2  60  per  bushel ;  and  it  may  be  that  wheat 


1869]  THB  DXCLINB  IN  BREADSTUFFS.  828 

growing  is  coosequently  comparatively  unprofitable.  It  would,  however, 
be  un$af<^  to  conclude  from  this  circumBtance  that  the  production  of  grain 
will  be  promptly  curtailed.  The  farmer  has  had  a  succession  of  profitable 
crops,  and  he  can  afford  to  meet  an  adverse  season.  He  stands  com* 
mitted  to  his  extended  production,  having  all  tbe  requiiiite  appliances 
provided,  and  cannot  readily  contract ;  while  he  naturally  hopes  either 
for  higher  prices  for  his  grain  or  lower  prices  for  the  labor  he  employs. 

TLis  changed  condition  of  the  grain  trade  has  very  important  bearings 
opoD  the  condition  of  the  general  trade  of  the  country.  One  of  the  first 
results  is  apparently,  as  we  noted  last  week,  an  unfavorable  one.  Enstern 
merchants  complain  of  difficulty  in  making  their  collections  at  tiie  West, 
»Dd  find  the  demand  for  goods  from  that  section  unexpectedly  limited  ;  the 
reason  being  very  obviously  that,  with  the  reduced  prices  of  grain,  the  far- 
mers have  to  fall  back  upon  credit,  and  cannot  keep  up  their  late  scale  of 
expenditures.  This  effect,  however,  in  its  turn  becomes  a  cause,  opor^aing 
•lirecily  upon  the  manufacturing  industries.  The  lightness  of  the  West- 
ern trade  is  already  compelling  a  reduction  in  the  prices  of  manufactured 
.^oods,  and  many  kinds  of  merchandise  are  selling  at  a  loss  to  the  pro- 
■i'ticer.  The  contraction  of  the  agricultural  demand  is  such  an  important 
tiement  in  the  goods  markets,  that  manufacturers  must  soon  be  com- 
pt^lled  to  seek  compensation  in  a  reduction  of  the  price  of  labor,  or  of  raw 
materials,  or  of  both.  A  necessity  for  such  reduction  has  long  been 
'tit ;  but  it  was  in  vain  to  ask  the  laborer  to  concede  while  the  cobts  of 
iving  were  advancing.  Now,  the  situation  is  essentially  changed.  The 
':c»«t  of  the  main  element  of  subsisteooe  ha&  declined  nearly  one-half; 
hal  has  fallen  in  nearly  an  equal  proportion ;  clothing  is  rapidly  cheapen- 
ing, and  the  prospects  of  the  Southern  crops  encourage  the  hope  of  a  cot- 
ttjQ  yield  which  will  give  fresh  impulse  to  this  tendency ;  and  although 
'tnimal  food  still  remains  high,  yet  the  reduced  profits  upon  grain  growing 
^«ill  naturally  direct  attention  to  cattle  farming  and  increase  our  supply  of 
;  rk  and  beef*  Thus  it  will  be  seen  that  the  return  of  breadstui^  to  com- 
l&raiively  low  prices  leads  the  way  to  a  general  reduction  in  the  value  of 
-11  domestic  products  embraced  in  the  costs  of  living.  Under  these  cir 
'instances,  tbe  manufacturers  will  be  backed  by  natural  causes  in  their 
-i'jriA  to  secare  a  reduction  of  wages ;  and  the  attempt,  when  made,  can 
.M'dly  fail  to  be  successful. 

In  view  ot  these  considerations,  the  efforts  being  made  in  some  branches 
of  labor  to  secure  an  advance  of  wages  are  peculiarly  ill  timed  ;  they  show 
rinytbiug  but  an  appreciation  of  the  industrial  condition  of  the  country, 
'Q'l,  if  succeasful  at  all,  can  be  so  but  very  temporarily.  The  operatives 
of  the  East  have  for  some  time  been  demanding  successive  advances  in 
wages,  to  compensate  them  for  the  high  prices  they  have  had  to  pay  the 


S24  THK  TAKOIZl  KIAVO.  \M9f 

West  for  lis  food.  The  West,  in  return,  having  i  educed  the  price  of  its 
products,  now  demands  that  the  East  shall  charge  less  for  its  Uhct » 
represented  in  roanufActured  goods.  If  the  operHtives  were  right  in  Ha 
first  instance ;  and  the  success  of  their  demand  proves  that  thej  were; 
then  the  farmers  are  right  in  the  second  instance;  and  their  demsnd  i« 
equally  sure  of  being  acceded  to. 

The  foregoing  considerations  throw  some  rays  of  light  upon  the  present 
depressed  aspect  of  business.  The  quiet  of  trade  is  really,  to  a  certaiD  ex. 
tent,  an  incident  of  a  remedial  process,  which  must  ere  long  work  oat 
highly  beneficial  results  and  produce  a  generally  sounder  condition  of 
business.  A  downward  course  of  values  is  alwajs  attended  with  losses  to 
merchants,  the  disturbance  of  confidence,  and  a  more  or  less  detpondent 
feeling.  The  capital  of  some  merchants  may  be  eaten  up  in  the  proc(ts, 
and  mercantile  establishments  may  be  reduced,  with  the  indirect  sdvso 
tage  of  driving  a  surplus  of  hands  from  the  distributing  class  to  the  pro. 
ducing  class*  But,  however,  severely  these  results  may  be  felt  by  those 
most  directly  concerned,  yet  the  process  is  highly  salutary  to  the  cooDtiy 
at  large  ;  it  is  a  recovery  from  disease ;  and  its  issue  will  be  health  sod 
prosperity. 


mt~ww~m~m~m~m~if~m~m'tfXf  mKM-f^0^  ■»  ■  ■  » 


THE  TIRGTZB  KliRfi. 


There  is  in  Asia  a  river  which,  though  named  by  a  people  who 
delight  in  high  sounding  titles,  is  yet  more  modestly  designated  thss 
our  own  noble  Mississippi,  which  we  have  named  the  **  Father  of  Ws 
ters."  The  Chinaman,  less  pretentious  for  once,  merely  claims  tbst 
the  Yangtze  Eiang  is  the  "  Son  of  the  Ocean."  A  reference  to  the  msp 
will  show  that,  in  the  distance  traversed,  and  in  the  extent  of  country 
(irained,  the  advantage,  if  any,  is  in  favor  of  the  Yaugtze;  while  tits 
population  living  on  its  banks  out  number  the  dwellers  on  the  Missis- 
sippi, as  100  to  1.  Of  this  great  river  until  recently  we  knew  Ktersllv 
nothing.  Recent  explorations  anri  travels  have  taught  us  that  the  riv«r 
proper  is  nayigable  more  than  2,000  miles  irom  the  sea,  auU  tiui  i^ 
branches  water  a  country  extending  between  the  25ih  and  36th  paral- 
lels of  latitude,  and  the  8()th  and  132d  meridians,  comprising  an  ares 
of  over  1,300,000  square  miles,  and  subsisting  200,000,000  of  people, 
not  including  the  tribes  living  on  its  tanks,  beyond  the  limits  of  Chi&k 
proper.  With  the  exception  of  the  Canton  River,  in  the  extreme  south 
and  the  Amoor,  on  the  northern  boundary,  neither  of  which  are  navu 
gable  to  any  distance,  the  Yangtze  is  the  only  navigable  river  on  the 
China  coast.  Foreign  vessels  have,  for  eight  years,  been  permitted  to 
trade  as  far  as  Hankow,  650  miles  from  the  sea ;  yet  the  river  is,  at  all 


1869.]  THE  TAKGTZC   XIAXO.  825 

setsons,  navigable  for  the  largest  sea-going  steamers,  as  far  as  Ichang, 
350  miles  farther  up;  and  even  at  that  point,  vessels  are  not  detained 
bj  want  of  water,  but  by  the  difficulty  of  passing  narrow  gorges,  where 
the  current  is  of  wonderful  rapidity.  Through  these  gorges  the  depth 
of  water  exceeds,  in  many  places,  150  feet,  but  powerful  steamers,  capa* 
hie  of  passing  these  points,  can  ascend  1,000  miles  further,  into  the 
«teart  of  the  province  of  Szechum,  the  garden  of  China.  Beyond  this 
we  are  without  accurate  information,  as  Captain  Blackiston,  to  whom 
we  are  indebted  for  his  careful  and  scientific  exploration  of  the  river 
above  the  Tung  l^ng  Lake,  was  here  compelled  to  turn  back. 

Limited  and  restricted  as  has  been  our  intercourse  with  these  people, 
and  scanty  as  is  our  information  as  to  their  resources  and  wants,  yet 
the  increase  of  trade  at  the  river  ports,  since  the  opening  of  Hankow,  is 
sufficient  to  assure  us  that,  when  the  day  comes,  as  come  it  must,  when 
the  whole  valley  of  the  Yangtze  is  as  freely  open  to  the  merchants  of  all 
nations,  as  the  Mississippi  now  is,  the  volume  of  trade  will  assume  pro- 
portions which  will  astound  the  most  sanguine  bpliever  in  the  future  of 
China.  Xiet  us  examine  the  trade  returns  of  the  Imperial  customs  for 
1667,  showing  the  trade  carried  on  in  foreign  boti oms  alone,  and  reflect 
that  we  have  access  to  the  river  for  only  one- third  of  its  navigable 
length ;  and  that  even  on  that  portion,  the  goods  carried  in  native  craft 
fdr  exceed  in  vajue  the  amount  carried  in  foreign  vessels ;  and  then  try 
and  form  an  estimate  of  what  that  trade  will  be  when  the  entire  river 
is  open,  and  steam  has  superseded  mat  snils  and  oars  as  a  propelling 
power. 

We  find  in  the  returns  referred  to  the  figures  in  this  table. 

Ports..  Porein  Tfnnorts.  Native  ImpcMti.  Native  Fxporte.  Tot«I. 

r».els.*  nf>«*le  TaHa  Taela. 

SM  sbai 8(  2*«>77  80,'  0  ','294  24  52«,46'S  89,-^M,7W 

BankMV  10.-i"A6  7,8»M«8  lM6.a»3  bCS^^l.t** 

K*nKJaiig ».ri3K,3Sl  h65ACS  4,  ft-J^^dt  7,F&i,6;)9 

CttiaKiaiif 8,^8  s61 8  9.(»4.«:6  88&,ttS8  6,«M{«H0a 

N},497,t8i  41,88^053  41,674,4S3  188,500,178 

From  official  notifications  published,  it  is  almost  certain  that  on  the 
revision  of  the  Engli^h  Treaty,  additional  ports  will  be  opened,  and 
among  them,  probably,  khaiig,  Chung  King  and  Suchow,  on  the  Upper 
Yangtze.  It  is  a  favorite  but  fallacious  argument,  that  the  opening  of 
a  greater  number  of  ports  is  disadvantageous  to  foreign  trade,  creating 
additional  expense  without  proportional  profit.  This  is,  however,  the 
doctrine  of  the  China  merchant  of  former  days,  who  believed  that  China 
^  was  given  to  him  for  an  inheritance,"  and  looks  on  all  fresh  workers 


^Th**  Tael  i»  $188M,  so  that  the  traffic  in  foreign  Teatela  is  about  one  hondrad  and  itrentf- 
■▼0  iti  liona  in  ^old. 


826  IITLAROBUSNT  OF  THB   FEW  TORS   OAlTAIil.  [^^^fi 

in  the  field  as  intruders,  and  who  cannot  see  that  the  world  is  a  gdoer 
by  an  increased  production  and  trade,  because  all  the  profit  does  not 
go  into  his  own  pocket.  There  are  many  such  in  China  who,  haying 
burnt  their  figures,  in  the  vain  attempt  to  control  the  business  of  four- 
teen  ports,  as  they  formerly  did  one,  argue  that  each  port  opened 
retards  trade.  If  their  views  are  correct,  the  day  that  the  entire  oountry 
is  thrown  open,  the  mercantile  world  is  ruined.  The^  average  price  of 
goods  has  undoubtedly  decreased,  but  the  quantity  used  has  increased 
in  a  wonderful  ratio,  and  it  is  the  question  of  quantity  which  in  moit 
interesting  to  the  United  States.  Comparatively  a  very  small  amount 
of  our  productions  find  a  market  in  China,  the  imports  from  the  United 
States,  in  1867,  being  only  Taels,  702,683,  against  Taels,  66,332,514 
from  Great  Britain  and  her  colonies;  while  the  exports  to  thetwocoan- 
tries  are  respectively,  Taels,  7,493,318,  and  Taels,  44,961,581.  No 
material  increase  in  this  demand  is  to  be  expected,  but  it  is  none  the 
less  for  our  interests  that  additional  ports,  if  in  the  interior,  shall  be 
opened.  The  navigation  of  the  inland  waters  of  China  by  steam  was 
inaugurated  by  Americans,  and,  with  one  unimportant  exception,  has 
been  conducted  by  Americans,  in  American  built  vessels,  and  there  is 
no  reason  why  it  should  not  always  be  so.  The  prize  is  well  worth 
striving  for,  since  the  day  is  not  far  distant  when  the  carrying  trade  on 
the  Yangtze  will  not  only  rival  but  surpass  thHt  of  the  Mississippi. 
That  the  Chinese  have  already  practically  decided  the  question  of  steam* 
ers  versu $  JMTiks,  is  shown  by  the  fact  that  three-fourths  of  the  merchan- 
dise carried  by  the  river  steamers  is  for  Chinese  shippers.  Let  Eng- 
land, then,  open  fresh  ports,  double  and  treble  her  supplies  of  cotton 
goods,  and  purchase  every  pound  of  tea  and  silk  that  China  can  raise; 
yet  if  we  retain  a  monopoly  of  the  tranportation  to  and  from  the  set- 
boar*},  we  have  availed  ourselves  of  the  most  lucrative  opening,  and 
grasped  the  richest  piize  that  China  offers  to  America. 

J.  n.  G. 


^»  WM^iNi^^^w  ^^<*^^»^>^  ^m^t^i^t^^t^tm 


ENLARGESENT  OF  TDE  NEW  TORK  CANILS. 

At  a  meeting  of  the  members  of  the  New  York  Produce  Exch&ng€» 
held  on  the  25th  of  March,  th»  subject  of  the  enlargement  of  the  canals 
of  the  State  was  considered,  and  an  address  delivered  by  Hon.  Israel  T. 
Hatch,  of  Buflfdlo.  There  is  no  discussion  in  which  the  country  is  more 
interested  than  this.  The  West  and  the  East  are  alike  desirous  o( 
seeing  some  measure  perfected  which  shall  lesson  the  charges  for  freight, 
Brendstuffd  raised  in  the  Western  States  and  Territories  are  of  little 
value  unless  an  Eastern  market  can  be  obtained :  and  prosperity  to  the 


H69]  HLAROEHIKT  or  TBI  KIW  TORK   CANIU.  32? 

West  ine&Da  ftlso  prosperitjr  to  the  East.  But  whether  the  desired  end 
ciD  and  Hhould  be  obtained  by  the  enlargement  ol  our  can^ila,  is  another 
qjeatinn.  Mr.  Hatch,  in  his  address,  has  preU  j  fully  and  ally  consid- 
ered ihit  subject  from  his  own  standpoint,  and  we  propose  at  this  time 
■imply  to  give  the  substance  of  his  addreas,  reserving  any  comments  we 
bav«  u>  make  for  another  occasion. 

In  1808,  when  discussions  as  to  the  Erie  canal  Srst  assumed  the  form 
of  deKnite  action  in  the  Legislature  of  the  Sta'e  of  New  York,  all  minor 
ind  selfish  interests  were  patriotically  regarded  as  subordinate  to  the 
national  welfare.  The  Legislai.ure  itself,  voluntary  renouncing  the  ad- 
Ttniiigee  of  geographical  position,  except  in  participation  with  other 
States  of  tbfl  Union,  confidently  expected  aid  front  the  nation  at  large, 
BDd  p  issed  STi  act "  csusing  an  accurate  survey  to  be  made  for  the  most 
tligi*ile  and  direct  route  for  a  canal  to  open  a  communication  between 
the  lidtwater  of  the  Hudson  River  and  Lake  Erie,  to  the  end  that  Con- 
gress may  be  enabled  to  appropriate  Bu<-h  sums  as  may  be  necessary  for 
the  accomplishment  of  ihxt  great  national  object."  On  the  6lh  of  April, 
1811,  a  further  law  was  passed,  which  stated  in  its  preamble  the  objircts 
of  the  act  to  be,  to  "encourage  agriculture,  promote  commeroe  and 
intTi u fact u res,  and  facilitate  a  free  and  guneral  intercourse  between  tha 
diff'erent  parts  of  the  United  States,  tending  to  the  aggrandizement  and 
pnisptrily  of  the  country,  and  to  consolidate  and  strengthen  the  Union." 
Ciiiitim,  Morris,  Fulton,  and  others,  were  appointed  commissioners  for 
the  ounsi deration  of  all  matters  relating  to  the  proposed  inland  naviga- 
iiiin.  They  were  empowered  to  make  application  in  behalf  of  ihe  State 
t)  ihe  Congress  of  the  United  States,  or  to  the  Legislature  of  any  State, 
lo  c  )-operute  in  the  undert^iking.  It  was  not  believed  that  a  work  so 
uQiversal  in  its  benefita  should  be  left  to  the  isolated  efflrts  of  a  single 
Slate. 

During  the  presidency  of  James  Madison,  the  comraisjioners  thus 

dcl'l^atcd  proceeded  to  Washington,  and  presented  the  ap;>tic8tion  to 

Corgress.     The  President  made  their  proposals  the  subject  of  a  special 

message,  dated  December  3,  1811,  recommending  the  undertaking  aa 

1  national  work,  and  suggesting  tlte  adoption  of  whatever  steps  might 

l>e  i>ecftssary  to  insure  Its  accomplishment.     At  the  reqnest  of  Albert 

sury,  Clinton,  Morris,  and  Fulton 

$8,000,000  for  the  work,  and  em- 

I  condition  nevertheless  thtt  no  tar, 

the  passage  of  boats  through  the 

needful  to  pay  the  annual  expensea 

n  repair."    This  bill,  together  with 

was  referred  to  a  large  committee. 


tn  [xzitAROXUKNT   OF  TBB  VfiW  TORS   OAKAIS.  [^*ff 

and  was  favorably  received.  Gallatin,  the  Secrefarj  of  the  Treasa^j,!! 
answer  to  a  letter  from  the  oommittee,  urged  their  favorabl*  acUoD 
upon  considerations  of  the  wisest  statemanship  and  purest  patrioUsn; 
but  as  it  was  expected,  and  this  expectation  was  verified  by  subseqnrat 
events,  that  a  rupture  with  Great  Britain  was  impending,  Congita 
finally  declined  to  make  the  appropriation  at  that  time,  on  the  ground 
that  'Uhe  resources  of  the  country  might  be  required  to  support  a  war.'* 
The  commissioners  marked  their  sense  of  the  refusal  to  grant  aid  to  a 
national  object,  no  less  important  in  war  than  in  peace,  by  saying,  is 
the  conclusion  of  their  report  to  the  Legislature: 

These  men  console  themselves  with  a  hope  that  the  envied  State  of 
New  York  will  continue  a  suppliant  for  tho  favor  and  a  dependent  ufyoD 
the  generosity  of  the  Union,  instead  of  making  a  manly  and  dignified 
appeal  to  her  own  power.  It  remains  to  be  proved  whether  they  iu<%e 
justly,  who  judge  so  meanly  of  our  counsels. 

Afler  the  postponement  of  aid  by  Congress,  applications  were  mada 
to  the  Legislatures  of  different  States ;  several  of  them  returned  favor, 
able  answers,  but  the  war  with  Great  Britain  having  began,  little  pro-, 
grass  was  made.  On  the  10th  of  November,  1810,  De  Witt  CiintoDi 
as  president  of  a  board  of  commissioners,  appointed  the  previous  year, 
renewed  the  application  to  the  government  of  the  United  States,  and 
on  behalf  of  this  State,  which  ha  represented,  again  bore  significant  testi- 
mony to  the  lofly  parity  of  her  motives  in  seeking  her  own  interest 
only  by  promoting  the  national  welfare.    He  said  : 

The  State  of  New  York  is  not  unaware  of  her  interests,  nor  disin- 
clined to  prosecute  them,  but  when  those  of  the  genenl  government 
are  concerned  and  seem  to  be  paramount,  she  deemi  it  her  duty  to  ask 
for  their  assistance. 

Finding  that  all  her  efforts  to  secure  aid  from  other  States  or  the 
general  government  were  unavailing,  the  State  of  New  York  alone,  itod 
with  the  slender  resources  of  those  days,  resolved  to  commence  llie 
gigantic  work.  Even  then  she  persevered  in  rejecting  conaideratioos 
merely  selfish.  Her  commissioners  repudiated  the  idea  of  a  ''traosit 
duty,''  to  be  levied  for  the  advantage  of  the  State,  and  said  this  would 
be  "  the  better  course  if  the  State  stood  alone,  but  fortunately  for  the 
peace  of  the  Union,  this  is  not  the  case.  We  are  connected  by  a  bond 
which,  if  the  prayers  of  good  men  are  favorably  heard,  will  be  indisso- 
'luble."  The  act  inaugurating  the  construction  oi'  navigable  communi- 
cations between  the  great  Western  and  Northern  lakes,  and  the  Atlanuc 
Ocean,  was  passed  by  the  State,  April  15,  1817,  and  waa  based  upon 
an  important  memorial  presented  to  the  Legislature  by  the  leading 


1869]  BXLARGBlfCKT   OF  THB   NEW   YORK  OAITALS.  92^ 

merchants  and  men  of  influence  in  the  city  of  New  York.    It  stated 
that: 

Whereas^  Navigable  oommunication  between  Lakes  Erie  and  Cham* 
plain  and  the  Atlantic  ocean,  by  means  of  canals  connecting  with  the 
Hudson  River,  will  promote  agriculture  and  manufactures,  mitigate  the 
calamities  of  war,  and  enhance  the  blessings  ot  peace,  consolidate  the 
Union,  and  advance  the  prosperity  and  elevate  the  character  c»f  the 
United  States,  it  is  the  incumbent  /^uty  of  th^  people  of  this  Sate  to 
avail  themselves  of  the  means  which  ihe  Almighty  has  placed  in  their 
hands  for  the  promotion  of  such  signal,  extensive,  and  lasting  benefits 
to  the  human  race. 

Uavirg  thus  originally  taken  upon  herself  whatever  there  might  have 
been  of  risk  in  making  at  her  own  unaided  cost,  a  channel  of  cheap  com- 
munication by  water  between  the  citizens  of  the  Eastern  and  Western 
S:ate:i,  and  between  those  of  the  West  and  the  great  highway  of  the 
world,  the  State  of  New  York  continues  to  be  the  great  regulator  of  the 
of  the  cost  of  transit,  by  means  of  her  eanals  between  the  East  and 
Wist,  protecting  no  small  proportion  of  the  people  of  the  Union  against 
those  exti>rtionate  charges  which  might  have  been  levied,  if  the  canal, 
*vith  its  natural  monopoly  of  position,  had  fallen  into  the  hands  of  spe- 
culiting  individuals  or  companies,  with  no  check  upon  the  pries  of  their 
freight  tari^s  except  their  forbearance,  and  no  restraint  upon  them,  ex- 
cept the  esLsj  virtue  of  modern  legislations. 

During  the  six  months  of  navigation  the  canal  alone  carries  as  large 

&  tonnage   of  freight  as  the  five  chief  trunk  railroads,  from   West  to 

£ist,  during  the  whole  year,  at  half  the  cost  to  the  public,  being  a 

»avin«r  annually,  in  transportation  by  water,  to  the  great  con<«uining  and 

producing  classes  of  the  Northwestern  and  Eastern  States  of  13(5,580,000. 

The  avt;rage  cost  from  Chicago  to  New  York,  via  the  lakes,  the  Erie 

Oinal,  and  the  Hudson  River,  including  canal  tolls  and  carriers'  profits^ 

wnbracinjEf  a  period  of  10  years,  is  >7  66^^.    The  cost  of  tr-msportation 

00  the  Central  Railway,  as  given  in  annual  reports,  taking  thn  average 

tor  six  years,  is  one  cent  four  mills  and  nine-tenths  of  a  mill  per  mile, 

not  including  carriers' profits.     This  average  applied   to   the  distance 

tiotn  Chicago  to  New  York,  by  rail,  988  miles,  makes  $14  31-6  per 

too;  or  16  t>5'l  more  per  ton  than  the  average  cost  for  a  period  of  10 

jears,  via  the  lakes,  the  Erie  Canal,  and  the  Hudson  River,  including 

^tate  toll^  and  profits  of  carriers.   The  through  freight  moved  Eastward 

hy  the  five  trunk  lines  and  the  Erie  Canal  is  about,  in  round  numbers, 

5,500,(iCO  ton%  which,  if  multiplied  by  tG  65  1,  the  difference  before 

iz^entioned,  would  make  a  difference  between  rail  and  water  transporta. 

tioa  of  th^  total  freight  carried,  of  $36,580,500,  and  if  the  pr<>fits  of  the 

railway  companies  be  added  to  the  actual  cost,  this  amount  would  be 


980  XVLAROSIIXNT   OF  THB   NEW  YOBS  OAWALS.  [^<>yt 

largely  augmented.    N^w,  however,  we  have  reached  a  crisis  in  onr 
manner  of  dealing  with  the  canal  system  which,  if  wisely  met,  will  in- 
fiure  New  York  the  commercial  supremacy,  not  only  of  the  contineDt, 
but  of  the  world.     Our  water  communication  is  the  true  basis  of  ow 
intercourse   between  the  interior  and   the   seaboard.     We  hare  bad 
practical  proof,  even  under  the  past  wretched  system  of  management, 
of  the  immense  revenue  to  be  derived  from  the  canals,  and  their  great 
superiority  in  point  of  economy.     During  the  period  when  navigation 
becomes  closed,  our  people  have  experienced  the  costliness  of  railro^ 
monopoly,  and  what  it  would  be,  were  canal  opposition  set  aside.    Yon 
have  only  to  recall  ihe  early  close  of  canal  navigation  in  the  fall  of  1867, 
and  the  losses  amounting  to  over  a  million  dollars  by  the  forwarders, 
shippers,  and  consignees  of  property  detained  more  by  the  bad  manage, 
ment  of  our  canals  than  the  unpropitious  elements.     Did  railways  fa^ 
nish  the  necessary  relief  and  bring  this  property  forward  ?     No.    All 
know  that  the  heavy  and  bulky  articles  of  commerce  go  by  the  canal- 
suoh  as  grain,  pork,  fuel,  coal,  salt,  etc.     Who  suffered  herel     Not  tht 
rich  who  pay  for  the  luxuries  as  well  as  the  necessaries  of  life  from  their 
superabundant  wealth,  but  the  laboring  classes,  who  are  barely  able  to' 
purchase  the  necessaries  of  life  with  their  scanty  earnings.     This  saving 
to  the  poorer  classes,  well  illustrated  in  the  annual  financial  report  of 
the  Auditor  of  the  Canal  Department,  of  1866,  in  which  a  tablo  of  ton- 
nagd,  carried  by  canal  and  rail,  and  a  calculation  made  upon  the  basii 
of  six  years'  transportation  by   the  two  methods,  is  given,   showing 
that  our  canal  saved  to  the  great  producing   and  consuming  class€8 
$8,000,000  annually. 

But  the  State  has  done  little  or  nothing  for  the  canals  since  the  adap- 
tion of  the  Constitution  of  184^.  Only  through  the  strength  of  a  cantl 
party  in  1853  was  the  restriction  of  that  Constitution  removed,  and  so 
amended  that  a  loan  upon  the  pledge  of  canal  revenues  was  authorized 
by  the  Legislature,  and  the  present  enlargement  secured,  with  the  ad- 
vantages of  decreased  cost  of  transportation  and  incroa^'ed  trade  and 
revenue.  But  for  that  enlargement,  the  vast  volume  of  trade  now  flow- 
ing into  New  York  throuc;h  canaU,  would  have  be*»n  turned  into  other 
channels,  and  lost  to  the  city  and  the  State.  The  late  Constitutional 
Convention  had  not  the  statesmanship  to  comprehend  the  ccmmercisl 
necessities  of  the  hf)ur  and  of  the  future,  and  consequently  did  not  make 
any  liberal  provision  for  th^m.  It  refused  to  introduce  into  the  pro- 
posed Constitution  a  provision  conceding  to  the  State  Lrgislature  the 
right  to  raise  a  loan  for  the  furtherance  of  canal  enlargement  on  the 
pledge  of  the  canal  revenues,  or  rather  prohibited  it  from  borrowing 
upon  them.    There  is  nothing  now  left  for  us  except  to  amend  the  Con- 


r 


1869]        XHLAROXIRKT  OV  THE  KEW  TORE  0ANAL8.  331 

stitution  hj  the  same  means  as  we  did  in  1853,  to  borrovr  110,000,000, 
if  that  sura  is  necessary  to  improve  our  canals;  and  if  the  Legislature 
will  pr:>pose  the  amendment,  it  can  be  carried  through  in  fourteen 
mon  hs.    Auditor  Bell,  in  his  financial  report  of  1868,  sa)s : 

The  application  of  the  balance  now  in  all  the  Sinking  Funds  to  the 
paMnent  of  the  several  canal  debts  for  which  these  funds  were  provided 
and  s^t  apart,  would  reduce  them  to  110,307,921  24,  as  will  more  fullj 
appear  by  the  following : 

Statement  of  ike  Canal  Debt  on  the  80/A  September,  18^8.  the  Balancee  in  iJie  8inh- 

ifg  ffind,  and  the  Amount  of  the  Debt,  after  deducting  the  Balaneee  oppliea&U 

theielo: 

Ualfi^ces  of ''Ink 

ii<g  Ka  riB  80ibor   BalAiice  of 
B*'p*t.    186S,     in     Bel  t»««e- np- 
Pebt  SOth 'ep-    cln«llnglVmpnra-   plynvKlnLra 
tcmber,  186S.       ry  luveB  ments.      Fuiids. 

rcflcr  Art  t,  8^c  1  of  the  Conttttntion $».M0,««)  00        $<,?l',a51  67       

Clita  t.  7,     ec.  8of  theOnrHliullon K  1,8  4,1^)0  00  1,1«2,*>V0  U         |P.201.6*9  88 

L'Ldcr  Art.  7,  ScC.  U  of  tho  Cooat  t.tiou....     1,f>8\00a  00  67H.H56  ftt  MU6.441  M 

$14,^9,960  00         f4.0i7,98i  43       $1G,307,V3L  94 

From  above  and  from  other  portions  of  his  report,  it  will  be  seen 
that  the  amount  ot  money  on  hand,  or  rather  on  deposit  in  "  Albany 
City  Depositaries,"  or  other  banks,  was  14,048,379,  v^hich  cannot  be 
use.!,  under  the  provisions  of  our  Constitution,  until  1873,  when  13,550,- 
800  of  canal  debts  fall  due.  This  large  sum  must  remain  at  a  low  rate 
of  interest,  and  accumulate  until  1873.  If  any  improvement  of  our 
canals  is  needed,  these  surplus  moneys  cannot  be  used  for  it,  because  it 
Would  violate  the  sacred  obligations  of  the  Constitution  of  1840,  and 
*he  people  must  be  taxed  unnecessarily  ;  the  toll  sheet  cannot  be 
cb:iiiged  I'Ut  to  a  limited  extent,  so  as  to  retain  or  increase  the  trade  of 
the  canals,  because  the  money  is  all  required  to  fulfill  the  provisions  of 
the  Constitution  of  1840.  It  requires  a  great  amount  of  credulity  t* 
believe  that  our  canals,  thus  hampered  by  these  constitutional  rcstric- 
tion^,  can  long  retain  its  present  tonnage,  and  much  less  add  to  it  that 
annual  increase  with  belongs  to  them. 

On  the  other  hand,  if  this  proposed  amendment  is  adopted,  our  tolls 
can  at  once  be  reduced  two  thirds,  and  carriers'  charges  one-half.  The 
history  of  successive  enlargements  and  successive  reductions  of  tolls 
upon  them,  demonstrates  this  fact,  that  in  proportion  as  you  increase 
the  capacity  of  the  canals  for  transportation,  you  decrease  the  cost  o^ 
transportation,  and  increase  the  tonnage  and  revenue.  Under  this  wise 
pf>licy,  adopted  by  Clinton,  Morris,  Marcy,  Hoffman,  Bouck,and  Earle; 
the  t^nu'ige  passing  over  our  canals,  and  the  revenues  from  them,  have 
doubled  in  every  decade. 

&jme  object  to  the  enlargement  of  our  canals  because  they  fenr  they 
will  not  be  an  honest  expenditure  of  the  money.    They  speak  of  it  at 


332  BKLARQEMXMT  OF  THB   KSIf  TORI  OANAUS.  |lfay, 

though  there  was  some  inherent  wrong  in  our  canal  system,  when  tht 
ikult,  if  any,  is  in  the  inoompetency  and  dishonesty  of  the  public  offiovs 
charged  with  its  management.    It  is  difficult  to  conceive  how  any  Terj 
extensive  frauds  can  be  perpetrated,  without  there  is  imbecility  and 
connivance  in  their  execution.    Yet  in  the  Constitutional  Convention  of 
1867,  any  liberality  in  a  constitutional  section  to  give  the  Legislatare 
power  to  borrow  money  to  improve  our  canals,  was  howled  out  of  \h% 
Convention,  under  the  cry  of"  Canal  Frauds,"  debt,  taxation,  etc    Mr. 
Evarts  moved  the  adoption  of  a  section  to  empower  the  Legislature  to 
borrow  110.000,000,  to  enlarge  the  canals,  whicn  was  voted  down.    Mr. 
Era^tu^  Brooks  at  last  moved  $2,000,000 — voted  down.     Immediatelj 
after  that  the  same  Convention  gave  the  Legislature  unrestricted  power 
to  boiTOw  as  much  as  might  be  necessary  to  construct  the  new  Cipitol 
building  (not  needed,  except  for  display),  %t  a  cost  of  $10,000,000,  and 
tax  the  people  to  pay  it.     Yes — an  unproductive  work  they  oc.uld  aa- 
thorize;  but  for  a  work  that  was  paying  $3,000,000  net  annually,  under 
the  worst  kind  of  management,  they  would  give  no  power  to  the  Legis- 
lature to  authorize  any  improvement,  because  they  feared  the  people 
might  be  taxed.    In  one  case  they  were  willing  the  people  should  m 
taxed  $10,000,000  for  the  construction  of  an  unproductive  ornamental 
woik;  in  the  other,  where  it  was  shown  that  the  improvement  of  our 
canal,  from  its  own  revenues,  would  increase  the  revenue,  th^-y  refused 
any  authority,  because  they  were  afraid  the  money  appropriated  would 
be  stolen,  and  the  people  taxed.     Everybody  knows  that  there  is  no 
dan«;er  of  the  people  being  taxed  for  any  canal  debts,  if  our  can-ils  are 
managed  and  improved  with  any  kind  of  wisdom,  and  with  even  toler- 
able honesty;  and  if  the  restrictions  of  the  Constitution  are  removed, 
so  that  Our  Canal  Board  can  use  the  money  on  hand  to  improve  tiw 
canals,  instead  of  lending  the  money  to  the  Albany  and  other  banki— 
now  near  $5,000,000 — and  a'ljust  their  tarifi*  rates  the  same  as  managen 
of  railways  do  to  retain  and  increase  their  business.    The  suggesiioo 
that  the  alleged  stealing  under  our  contract  system  must  be  stopped 
before  any  money  is  borrowed  to  improve  our  canals,  scarcely  deserves 
grave  consideration.     It  arises  from  ignorance  of  the  interests  of  oar 
canals,  or  an  interested  opposition  to  any  improvement  of  them.    Wh/, 
such  a  course  is  about  as  wise  as  it  would  be  f  >r  a  man  to  stop  in  his 
endeavors  to   put  out  the   flames  of  his  burning  house,  and  go  afier 
the  thieves  who  he  feared  might  congregate  afler  the  fire  for  plunt^er. 

But  we  are  told  that  our  canals  are  not  worth  preserving.  Mr.  Jaj 
Gould  said,  before  the  Canal  Committee,  in  Albany,  practictillj^,  that 
they  were  not ;  that  he  could  use  them  up  with  his  railways.  11^  in 
iact,  claimed  that  he  could  demolish  by  auccessfai  competitioD,  in  a 


1800]  BKLARflKmnT  OT  THB  VIW   TORK  OAMAUI.  33S 

da/,  oor  splendid  oanat  system,  which  baa  been  the  wnrk  and  p^Uo  nf 
our  people  fjr  half  a  o.ntury,  and  founded  upon  a  policy  itiauguraled 
by  the  wisdom,  ihe  patriotism,  and  heroiatn  of  the  earliest  and  itubleat 
ilati^tneD  of  thia  commonwealth.  Only  one  sach  boast  was  ever  befora 
mide  in  this  country,  and  that  was  two  years  af;o,  in  a  speech  iu  Chi- 
cago, by  a  foreign  Knight  and  atuck  operator.  He  proclaimed  that  hit 
coatinenlal  railway,  the  Atlantic  and  PuciRo,  could  and  would  carry  all 
ihe  lake  >nd  canal  freights.  It  was  Sir  Morton  Peto.  He  struttt^  hia 
brie!  I)0ur  here— daahed  through  the  country  in  hia  imperial  vat,  giving 
bis  bouquet  dinners.  You  all  know  his  fdte,  and  the  fate  of  hin  raiiwty, 
which  stands  on  our  soil,  going  to  decay,  a  manument  of  bis  lolly,  and 
a  narDing  to  kindred  spirits. 

Let  me  say  one  word  further  upon  tha  pretensions  ol  those  present 
claims  of  our  railway  managers  who  believe  railways  would  use  up  our 
ctmiilst     The  railway  mana^er^  anawered  this  question  pirtially  them- 
)elves,  a  short  time  since,  before  a  oommittee  of  the  Legislature,  at  Al- 
biny,  while  s  bill  was  under  conaideration  calculated  to  give  the  people 
of  this  Slate  along  their  lines  equal  facilities  for  trans portatiou  of  their 
property  at  relative  prices,  with  people  beyond  the  Stale.     They  aay 
ibty  cannot  maiotain  the  aupremscy  of  their  lines  in  the  carrying  trade 
ol  paasergera  and  freight,  if  compelled  to  make  a  pro  rata  scale  of 
charges  to  tba  people  of  this  State.     That  is,  unless  they  can  levy  aa 
arbitrary  rata  upon  the  passengers  and  property  of  our  citizens  above 
tba  fair  value  of  such  services,  and  above  that  charged  upon  passengers 
vid  freight  tr^oof  the  dtizens  of  other  States,  they  cannot  contirue  to 
aerve  the  citizens  of  others  States  at  rates  below  the  fair  value  of  such 
Mrficea.     This  would  surely  be  a  costly  warfare  to  secure  the  suprem- 
acy— thus  levying  upon  our  own  citizana  the  cost  incurred  in  the  de- 
'tniciion  of  our  own  canal  system.     Fortunately  for  the  people  of  New 
Vurk,  the  isthmus  between  the  great  lakes  and  our  seaboard  across  the 
Siate  of  New  York,  has  sufficient  merit  as  the  great  natural  tract  or 
channel  of  commerce,  to  lequire  do  such  forced  contributions  from  the 
y<>'>ple  along  their  lines,  to  maintain  their  supremacy  over  all  others 
^-^L«een  the  mouth  of  ihe  St.  Lawrenoe  and  the  mouth  of  the  Mississippi. 
But  this  boast  may  in  time  become  truth,  if  something  is  not  done  to 
orka.    Anything  tan  be  destroyed 
ition  could  ba  reduced  twothirdt 
aagement.    An  amendment  to  the 
ned,  as  the  political  power  of  the 
re  1,000  miles  of  canals,  with  the 
to  every  part  of  the  State.     The 
in  1653,  was  121,000.  This  major- 


3S4  SKLlRasitBKT  OF  THB  RKlf  TOBX  0AVAL8.  [¥<iy, 

itj  will  not  be  diminished.    There  was  a  village  along  the  banks,  at  in 
average  of  every  three  miles.    Sixteen  years  ago  the  capacity  of  •  canal 
boat  was  only  sixty  tons.    Where,  to  day,  would  be  your  trade,  if  the 
last  enlargement  had  not  increased  the  tonnage  of  canal  boats  to  tvo 
hundred  and  twenty-five  tons.    Some  claim  that  the  political  power  of 
the  canal  question,  which  was  raised  successfully  in  1853,  has  dimin- 
iahed  with  the  diminution  of  our  local  traffic,  whilst  the  railway  power 
has  been  augmented,  from  the  increased  use  of  the  rail  by  our  people. 
I  admit  tbere  is  some  force  in  this  suggestion,  but  with  the  decrease  of 
our  own  local  traffic  on  our  canals,  there  has  been  an  increase  in  the 
practicai  knowledge  oi  the  workings  of  our  two  carrying  systems.    The 
enlightened  railway  managers  of  our  great  trunk  lines  find  rival  liaei 
through  Canada,  Pennsylvania,  and  Maryland  can  successfully  compete 
with  them,  and  that  in  order  to  maintain  their  commercial  supremacj, 
as  H  portion  of  the  carrying  system  of  this  State,  six  months  in  the  year 
they  mjst  maintain  the  commercial  supremacy  of  our  canals,  which 
during  the  season  of  navigation  regulate  the  freight  tariffs  of  our  carry- 
ing system,  bringing  through  them  the  volume  of  Western  trade.    Oar 
railways  have  a  fair  share  of  the  benefits  arising  from  this  current  of 
trade,  created  and  held  by  our  canals  during  six  months  in  the  year^ 
and  a  monopoly  of  them  when  our  canals  are  closed  for  the  other  six 
months.    The  comprehensive  minds  of  Erastus  Coming  and   Dean 
Richmond,  who  were  alike  distinguished  for  their  successf\il  manage- 
ment of  railways,  and  their  intimate  knowledge  of  the  ebb  and  flow  of 
our  internal  commerce,  at  an  early  day  recognized  the  true  basis  of  the 
relations   of  our  two  carrying  systems.    Their    sagacity  penetrated 
through  the  apparent  antagonism,  and  found  a  community  of  interests, 
and  maintained  always  that  there  should  be  harmony  of  action  between 
the  two.     Of  the  former  distinguished  gentleman,  and  as  an  associate 
member  of  the  Finance  Committe  io  the  Constitutional  Convention  of 
1867, 1  feel  at  liberty  lo  say,  that  he  always  maintained  a  most  liberal 
policy  toward  our  canals ;  insisting  that  tolls  should  be  removed  from 
^em  as  fast  as  consistent  with  the  payment  of  the  canal  debt ;  that  rail- 
ways could   never  successfully  compete  with  canak  in  carrying  the 
bulky  articles  of  commerce,  and  that  our  railways  could  only  muntain 
their  commercial  supremacy  through  the  agency  of  our  canals.    I  say 
then  that  we  have  nothing  to  fear  from  railways,  for  an  intelligent  exam- 
ination of  the  subject  will  satisfy  them  of  the  force  of  these  views;  or 
they  will  adopt  them  through  the  instinct  of  self-preservation,  if  not 
from  an  enlightened  consideration. 

Mr.  Hatch  said  he  was  detaining  them  longer  than  he  wished  (Go 
on,  go  on) — ^but  he  noticed,  as  doubtless  they  did,  in  the  telegram  from 


1869]  MLAROBMBKT  OY  TBI   KBW  TORS  CANALS.  33ff 

Washington  this  moniing,  a  resolution  introduced  by  Mr.  Schenck, 
Qiairmain  of  the  Committee  of  Ways  and  Means,  which  was  adopted, 
requesting  the  President  of  the  United  States  to  open  negotiations  with 
the  Dominion  uf  Canada,  to  secure,  among  other  priyileges,  the  free 
navigrition  of  the  St.  Lawrence. 

It  is  the  old  reciprocity  scheme. 

Coi.  Hincken  said,  they  were  divided  upon  the  question  of  a  recipro- 
city treaty. 

Mr.  Hatch  resumed :  Well,  sir,  you  may  be  divided  here  upon  some 
of  the  terms  of  a  treaty,  but  you  cannot  afford  to  divide  opinion  or  ac- 
tion upon  the  equivalents  which  are  proposed  in  exchange  between  the 
two  countries  as  a  basis  for  a  treaty,  our  free  markets  for  their  free 
canals,  enlarged  for  passage  of  vessels  of  1,200  tons,  to  be  constructed 
and  paid  for  from  trade  diverted  from  our  lake  marine,  or  our  railways 
and  canals,  and  your  ships. 

The  Hon  A.  T.  Gait,  the  Canadian  Minister  of  Finance,  in  a  late 
speech,  on  behalf  of  the  government,  said : 

We  have  no  trade  ourselves  which  would  require  enlargement  of  the 
canals;  no  trade  which  would  justify  us  in  enlarging  them;  we  could 
only  be  ref)aid  for  such  improvements  by  obtaining  the  American 
States'  trade,  and  making  it  pay  tolls,  or  otherwise  contribute  to  our 
revenue. 

How  far  our  government  will  be  wilhng  to  surrender  its  trade  and 
revenues  as  a  tribute  to  British-Canadian  rivalry,  will  depend  upon  the 
character  and  honesty  of  American  statesmanship  in  Washington.  In 
other  words,  surrender  to  us  your  American  commerce,  that  is  now  car- 
ried by  your  lake  marine,  over  your  railways  and  canals,  and  broui^h- 
to  this  city  to  enrich  your  commission  merchants  and  freight  your 
ships,  and  we  will  give  you  the  free  navigation  of  the  St.  Lawrence 
with  enlarged  canals.  To  read  this  resolution,  the  credulous  would  sup- 
pose the  honorable  chairman  of  the  Committee  of  Ways  and  Means  was 
leeking  to  secure  to  us  some  great  commercial  advantage  which  is  now 
withheld.  What  is  the  fact?  The  free  navigation  of  the  St.  Lawrence 
is  now  conceded  to  our  lake  marine,  and  it  is  a  barren  concession,  not 
half  a  dozen  American  vessels  having  passed  through  wia  the  St.  Lawt 
rence,  since  the  abrogation  of  the  treaty.  And  what  does  the  Dominion 
receive  in  return  for  this  barren  concession  t  Their  vessels  are  allowed 
to  go  into  our  inland  sea.  Lake  Michigan,  and  enter  into  the  great  grain 
port  of  this  cofltinent,  Chicago,  and  others  on  that  lake,  and  there  com- 
pete with  American  vessels  for  the  diversion  of  property  which  would 
otherwise  gp  over  our  American  carrying  systems. 


9M  BVLAROBlOnrT  OF  TBI  VXW  TORK  OAVALi.  (JAf^ 

Agutn,  Canadian  railways  are  permitted,  under  the  exercise  of  yerj 
doubtful  authority,  and  policy,  too  by  the  Secretary  of  the  Treasury,  to 
carry  American  merchandise  from  one  port  of  the  United  States  to 
another,  through  Canada,  when  our  navigation  laws  have  prohibited 
their  vessels  from  transporting  the  same  property  from  the  same  porti; 
in  fact,  through  our  liberal  concessions  their  vessels  and  railways  are 
furnished  with  all  their  business,  except  that  of  their  inferior  local 
traffic. 

If  the  Erie  Canal  is  improved,  and  the  cost  of  transportaUon  redaoed, 
the  great  cause  of  dissatisfaction  in  the  West  will  be  removed,  and  Brit- 
ish capitalists  will  refuse  to  make  further  investment  in  the  unprodue- 
tive  works  of  Canada,  especially  when  this  great  State  adopts  a  policy  1 
which  will  make  our  canals,  in  no  distant  time,  as  free  as  our  lakes  and 
rivers,  and  which  in  the  end  will  give  a  free  water  line  of  transportation 
from  this  city,  1,500  miles  long,  to  the  centre  of  the  continent^  and  by 
addition  of  700  miles  rail,  extend  it  to  reach  the  Pacifio. 

Finally,  allow  me  to  remind  you  that  the  Northwest  aims  at  dlreet 
trade  with  Europe,  and  Boston  believes  that  if  the  St.  Lawrence  canals 
can  be  enlarged,  they  can  bring  their  largest  line  of  propellers  upon  Um 
lakes,  which  now  are  engaged  in  carrying  freight  from  Chicago  to  (^ 
densburg,  and  then  by  rail  to  Boston,  through  the  St.  Lawrence  to 
Boston,  become  respectable  rivals  to  you  in  the  inland  commerce  of 
this  cx)untry.  Schemes  to  accomplish  these  objects  are  pending  in  Con* 
gross  now,  and  I  do  not  hesitate  to  say  that  I  believe,  as  ceruinly  as 
that  the  waters  of  the  St.  Lawrence  will  continue  to  flow  to  the  oceaO) 
that  this  commercial  experiment  will  be  tried  to  change  the  channeli 
and  outlets  of  the  inland  commerce  of  this  country.  Of  its  probable 
success  I  have  nothing  to  say,  only  that  if  our  commercial  power  on 
this  continent  should  be  diminished,  or  pass  into  rival  hands^  it  will  bo 
owing  to  our  neglect  to  improve  those  natural  advantages  with  whidi 
the  God  of  nature  has  surrounded  us. 

I  will  only  add  in  conclusion,  that  longer  inaction  upon  the  part  of 
our  canal  people  must  hasten  the  day  for  the  abandonment  of  our  pub- 
lic works.  Clinton,  Morris,  and  Fulton  said  to  the  Legislature,  in  a 
critical  period  of  our  canal  history :  *'  That  delays  are  the  refuge  of 
weak  minds."  Corruption  and  a  narrow  policy  are  our  worst  foes.  I 
appeal  to  you  then  to  act  promptly  in  this  crisis  of  our  canal  aflairs, 
and  with  some  of  the  energy,  faith,  comprehension,  and  foresight  of  your 
illustrious  predecessors — those  merchant  princes  who,  in  1817,  memo- 
rialized the  Legislature  for  the  construction  of  the  Erie  Canal,  and 
lived,  thank  God,  to  rejoice  with  the  whole  people  of  this  State  over  its 
completion  in  1825-— a  work  uniarpasaed  in  ancient  or  modem  history, 


1889]  MR.  BOUTWSLL  AKD  WR  TINAirOSS,  837 

both  in  the  grandeur  of  the  gigantic  undertaking,  ani  in  the  magnitude 
of  commercial  results.  There  is  no  mistaicing  the  signs  of  the  times — 
the  J  point  os  to  a  steady  march  in  the  improvements  around  ua ;  everj- 
we  can  refd  progress.  We  are  admonished  to  heed  the  teaching  which 
this  fact  famishes,  and  those  who  disregard  it— whether  they  be  States 
or  political  parties — and  who  do  not  move  on  and  keep  step  to  the  for- 
ward movement  of  the  day,  will  be  forced  behind  by  their  more  enter- 
prisiog  and  progressive  rivals. 


^t0*^t0^'^0^^^^^^^^^*^^0*0%0^^*^  0^^k^^0^^>^k^i0m 


IR.  BOUTWELL  AND  OLE  FINANCES. 


Tbe  monetary  operations  of  the  government  of  the  United  States  offer 
io  cur  reports  an    anomaly  which  has  its  parallel  in  those  of  no  other 
^eat  commercial  nation.    Ever  rince  tbe  passage  of  the  Sub-Treasury 
Law,  ID  1846,  the  Onanuial  machinery  used,  in  the  receipts  and  disburse- 
T.eots  of  tbe  government,  has  been  seperaied  as  far  as  possible  from  that 
^^niploved  in  tbe   receipts  and  disbarsements  of  tbe  business  community. 
TLe  use  of  tbe  National  Banks  as  depositories  of  the  public  money  took 
a^aj  some  of    the    evils  and  disturbing  forces  which  arose  out  of  this 
anomalous  separation.    But  as  tbe  depository  system  is  now  less  used 
tl  an  formerly,  and  as  it  will  probably  fall  still  more  into  inactivity,  there 
ii  a  change  apprehended  in  tbe  early  future,  and  a  revival,  in  exaggerated 
orma,  of  the  derangement  and  friction  which  formerly  was  so  often  ascribed 
Lo  the  Treasury  as  its  active  cause.   This  apprehension  may  be  modified 
to  some  extent  by  the  skilful  judicious  administration  of  Mr.  Secretary 
Boutw^JIand  Mr.  Van  Djck  the  Assistant  Treasurer.  But  it  will  long  con- 
stitute one  of  the  perils  of  tbe  financial  situation,  that  at  any  moment  the 
:'07erament  may  be  selling  two  or  three  millions  of  gold,  draw  out  of  circu- 
i<ttioQ  and  lock  up  from  commercial  use  the  four  or  five  millions  of  cur- 
^(-Qcy  which  is  all  that  is  required  by  the  banks  as  a  machinery  for  effect- 
's' their  exchanges  of  100  or  120  millions  of  dollars  a  day.     Mr.  Bout- 
"><•■!  showed  in  bb  speech  at  the  Stock  Exchange  that  he  is  not  unaware 
"  ibis  sensitive  and  delicate  peril  which  is  one  foundation  for  the  feverish 
-^rest   which   afflicts   the   money  market,  and  for  tbe  uncertainty  and 
pecolative  excitability  which,  while  it  depresses  legitimate  trade,  gives 
cession  for  tbe  strategy  of  cliques  in  the  Stock  Exchange  and  tbe  mani- 
pulation of  capitalists  in  the  Gold  Room. 

There  are  two  leading  features  of  importance  in  the  policy  which  Mr 

bjuiweU»ay»  be  shall  pursue.     The  first   has   to  do  with  the  sales   of 

-^'••J,  the  second  with  the  currency  balance  he  will  keep  on  band.     As  to 

-9  saies  of  tbe  coin  received  for  customs,  it  is  his  intention  to   refrain 

•fwai  sudden^  capricious,  uncertain  chacgas  of  plan.    Other  things  being 

2 


S88  HR.  B9UTWEU.  Am  OUR  FiNAxcEs^  [^Kqr» 

equal  be  uill  Fell  every  week  about  tbe  amount  required  to  keep  Ihe  coio 
balance  at  about  tbe  same  Iftvel.    Wben  tbe  coin  receipts  are  heavy  be 
will  sell  more,  and  wben  ihej  are  Ilgbt  he  will  sell  less.    In  no  one  week, 
however,  will  be  place  more  than  a  luilUon  of  gold  on  tbe  maiket,  and  i( 
tbe  interest  disburaeraenta  are  he<«v7  be  may  have  very  little  to  sell  at  all. 
Still,  as  we  understand  bim,Boroe  sales  will    be  made  every  week  eioept 
tbe  bids  happen  to  be  so  low  that  he  deems  it  not  for  the  interest  of  the 
government  to  accept  them.    Now  this  arrangement,  aa  we  said,  is  a  very 
aatisfaclory  one.     There  is  nothing  irregular  or  spasmodic  about  it.    It 
will  produce  no  derangement  or  disturbance  ertber  in  the  money  market 
or  in  tbe  moveroentA  of  busines«  Had  such  a  poHey  been  followed  steadily 
out  during  tbe  last  three  or  four  years  it  is  safe  to  say  that  the  losses  of 
many  millions  of  dollars  would  have  been  saved  to  our  commercial  and 
manufacturing  industry.    The  secrecy,  the  mystery,  tbe  barrasstng  uncer- 
tainty which  have  been  deemed  a  necessary  part  of  tbe  Treasury  iKilicy, 
is  now  given  up,  and  that  publicity  for  which  tbe  country  has  been  wait- 
ing is  now  happily  inaugurated.    This  is  one  of  many  reasons  we  would 
cite  why  our  commercial  and  financial  men  are  looking  forward  with  rooeh 
of  hope  and  confidence  to  the  results  and  operations  of  tbe  administration 
of  Mr,  MoutweN. 

But  this  confi^dence  regards  still  more  the  other  part  of  the  Secretary's 
policy  vihicb  refers  to  the  mischievous  hoarding  of  idle  greenbacks  in 
the  Treasury.  We  are  approaching  that  season  of  tbe  year  wben  jur 
rency  accumulates  in  New  York,  the  great  mercantile  and  roonetarj 
centre  of  the  country.  Still  the  South  has  been  absorbing  a  vast  amount 
of  greenbacks  only  a  part  of  which  have  come  back  here.  Forty  or  fifty 
millions  have  been  drawn  into  the  more  active  circulating  channels  of 
Southern  industry  wheie  a  large  part  will  remain.  This  large  sum  taken 
from  tbe  North  by  tbe  South  will  make  greenbacks  more  scarce  here  this 
summer  than  in  former  years.  Hence  the  importance  of  the  knowledge 
that  Mr.  Boutwell  will  not,  as  McCulloeb  did  more  than  once  during  bis 
closing  year  of  office,  deplete  suddenly  the  channels  of  the  circulation  bj 
locking  up  greenbacks  in  the  vaults  of  tbe  Treasury.  A  depletion  of  tbs 
greenback  from  tbe  banks  to  tbe  extent  of  four  or  five  millions  at  a  eriticat 
moment,  will  suflice  to  fill  an  easy  money  market  with  convulsion,  con* 
stemation  and  spasm.  No  trouble  from  this  source  is  to  be  apprehended 
under  Mr.  Boutwell's  management,  and  this  fear  being  removed,  there  it 
more  confidence  in  business  circles.  Such  are  some  of  tbe  reasons  for 
the  ri'^e  in  government  bonds  which  was  developed  during  Mr.  BoutwelFi 
brief  visit  to  New  Yoik  on  Thursday.  This  advance  was  ascribed  to  tbe 
expectation  that  Mr.  Boutwell  would  buy  up  some  of  tbe  gold-beaxing 
bonds  for  tbe  sinking  fund.    Tbe  chief  eause  uodoubtedly  must  be  sought 


166»| 


RAILBOAD8   07  Tns  WORLD. 


339 


in  iLe  general  confidence  iivhich  lias  been  resuscitated  by  the  sound,  coa- 
senalive,  cautious  policy  which  the  Treasury  is  expecteJ  to  pursue  as  to 
ihe  currency  balance  and  the  sales  of  gold. 


KAIIEOADS  OP  TDE  WORLD  (CLOSE  OF  \m.) 

We  have  compiled  from  the  most  recent  information  published  ihe  fol- 
loHirg  lable,  showing  the  extent  and  population  of  all  countrie**  into 
which  the  railroad  baa  been  introduced,  the  length  and  cost  of  the  rail- 
^Mils  th'^rein.  and  their  relation  to  area  and  ponulntion  : 


Conntrlea*  Stit.s. 


N-'aTH  AMEBI'-A. 

•r:er;cft 


Kxieiit  •»  Pup*b'n. 


▲•-ea  In 
Bqu'>re 
ml  es. 


'fiO. 


<i:eb<*c. 

N.  I'raiisjl'k . .. 

V'  r*  Scotli 

^nKQ 


i4:..i!c» 

.SIT.,    .JIKBICA. 

l.'-i.-'JiM* 

.  TfiJ  U 

'-'  >bG-ifty<iDa.. 

■  ^.1 : 

»*»juAy 

>'« 


il 


irrcQ  ia;aepu1).lc 

-  K.  Of  Gt.  nrlUta  and  Irrland. 
'•r,ckEa,plre 

•    ilB 

*vrt'Jj:al ,.... 

'  -"^s  J  ucpa.ilc 

'  *y 

TiiH  bt ACes 

;'->i» 

'*  Oennan  -t«ce9  iotberj 

■>  <'*rmiaHuite9 

"i  -Mat  iimplre 

;  Btn 

^    md 

'•lifa 

.'"■a  47 

/■>n  n  t    rope) 

•i'-y  (ia  Buropt) 

'    •   -!>• 

'i'j/lo^ra 

'•*aI»diA i 

**''*■»  '!'.'.!1'.!!1  "mill II!*!!!!"! 

^pbca. 

'-T.t 


'i» 


'  *'"<CoionY....  


tiri* 

'  ^Ott  b  Wales 

•-?a':».id 

-••  Australia.. 
w  Ztxjoxd 


"  ^-.SiAnerea. 
'  '*op« 

•    * 

*"*■*•...!!!!!!! 
•Asinl];^ 


8,001.003 

1473  ^2 

'409^^190 

2s  37 

IR;  71 

772,672 

I72T8 
6;250 

631^12 
426,0 
9'i300 
2,978.4'  0 

498.7US 

249,791 

l,Uls>.iaO 

123,519 

211.160 

!«  7  3 

88.47R 

l-;872 

101,  7S 

4,^18 

13i.499 

;c4,lI.V? 

44  51'.) 

240,«2 

14  4av 

13.hin 

i:o,M2 

123  228 

l,fl6\7<0 

200.'- 12 

20.106 


Pr'pTtla* 
tfon. 


hail  roads. 


Len*ta 

in 
miles. 


37J0U.COO 

1,'W2,0«7 

1,354.067 

819.027 

8^2,3  iS 

8,^5J,U80 

1,449^1 
441,264 

2.W7,478 

15^.026 
10;n5.«  Oj 
1.000,OUO 
2,M3,901 
1.70l.i>81 
l,236Jft55 

29;293  319 

87.82,229 

16  031.3 17 

3.9''7,881 

y,5  4,'40 

24,896.801 

«;92,''0'i 

2S,V45  543 

&.RS7.791 

8,324,16) 

82,573,<  03 

4,940,570 

3.739  es-i 

4.111,141 

1,701,47-i 

1  608,(ii'9 

65,'*n2,  67 

15,72^.867 

l,3;i5,^40 


6*3,300;  le.o'o.'^oo 

6»00»l  H.O^O.iOO 
1,1(>2  200l79.ig2.0i>0 


Ab90lnt« 
cost. 


iHela-  loiil 

n    I 


Sq  mi'ii  Iiiliabtt- 
to  **ach 


tive 
cost. 


fi2&>0 
24.70J 

178.000 
214.000 
I2').n00 

ao.oo«) 

96.800 
823,400 
678.000 
888  S'O 
106,500 


l«,9l7,noo 
l.'i91,0i)0 

2,.'!00,0C0 

2,500,000 

80>.0r0 

190,0^0 

574am 

6TB,"85 

f9,7l2 

14^,4141 

175.3  7. 


42,247  $1.8:9,529,313  644,296 


1,40: 
679 
231 
145 


431 
14 

48 
S2 

fin 

512 
4''>l 
101 
891 
231 

j4.347 

3,429 

9*2 

887 

4.119 

2'6 

6.926 

ISil 

2.681 

4.4» 

1,703 

83) 

1,194 

44 

401 

4,817 

39 

ICO 

143 

lOO 

402 

ir<2 
82 

4<:8 

2^ 

85 

3 

409 

174 

102 

87 

17 


RBCA  "ITULATFON. 


4,ir7j8n4 

68528 
5,979,4*6 
3,642,H26 
2in8j2  0 
58  VO" 
1,6;8000 


^'rreg.lB  World 19,441.018  584.46^,987  109,177  10,839.791,983 


I  49.291606 

1,*'90S28 

21,040.9  7 

34|jn3,069 

22l.200.i«0 

5.450  000 

1.83S.751 


44,f«02 

445 

1.431 

56.660 

4,474 

S8» 

71^9 


43  01«,f^l9 
6.9  4,23^! 
6,95.\!'.8 

ll,fa93,&40 

32,45^.548 
891474 

8.000.000 

2,7W,78I 

6,53!),14'i 

102,9r«.384 

4.13(1,3  0- 

9.6*7  410, 

3I,>63.746 

1:2.493,058 1 


76.'»44 
74  811 
30,771 
47.s*69 
54,9Ju 

S3.10S 
27,911 

1''6  6^7 
8;,2I2 
92,319 

2<l,»f'7 
89.790 
5fi,4l'» 
61  s«9 
93,91< 


r  11 
rt-aJ. 


auu  to 

Ofj      QHCh 

•   '  mile  of 


'railroad. 


2,511314.485 

1.97H.664  89i 

3J7,437.«« 

f2.'«87.474 

7MS7,M2-' 

882.  VO  773 

18.648.47i 

747.»8'»,346 

117,107.697 

234  914J2;S 

8  7  3  9.5«5 

182198.V6] 

83.631 ,0H1 

74.5.S9.0  2 

4.055.656 

22  902.714 

7M.70i).274 

14,9;{6.551 

9,000.C00 

6  ?64.243 

6.0<tO,OO.i 
fJl  .8^,7511 

7,'-50.oro 

2,2^0.530 

45.16^,879 
1.8».«2l 

7,828.792 
119.42. 


17'^,260 

158,714 

107,156 

1P1,3I7 

8M3) 

9318 

S6  8I7 

126171 

I  h9  327 

I  87,««9 

IS  9r> 

106,'  87 

I  9.201 

I  f2.83'< 

9.',)74 

67.111 

16''.1.22 

46,729 

9.  ,000 

4*»'0l 
60,000 
W,.6.» 
Ti.f-OO 
61.636 

g6,!«4 
65,2  8 

92  irs 

99,711 


71.04 

101.98 
3  5.2 1 
119  3 
12^.'.9 
2343.14 

1C9.*^ 
446.43 

10  873  83 

13.331  56 

l.(U  5  UO 

9,807.42 

l,8H<w 

4,»<7.6> 

(34  0' 

4b6  32 

8r)0 

21J2'» 
63.  9 
69.  !* 
17.0-4 
241.0 
21.06 
23  51 
18.57 

li.5 

542< 

15.4 

H28« 

2i!>0>jC3' 

8  .  a 
451  ?4 
(29.VI 
201.66 


876.1f 

1894.81 
2.»94J0 
1,4  IM 
2.^8706 

40,836.58 

8,'t63..f9 
8.151J6 

68.280.6S 

82  589.71 

2f>83.77 

19.019.14 

21,739  W 

V4.8^-0.19 

4,:  27.21 

5.491.75 

S.TAIO 
8  763  fl« 
4.675.20 
7,»589 19 

6.0.-I4.C9 

8  206M 

8,9  <  1. 70 

4.8  9.«:< 

8.179  J59 

73'4.S'» 

2.iOl.SS 

4,2«0J87 

»,44'i.«  9 

3  ,•♦9.9) 

4.010.V1 

19,2  9.' 9 

^9  ^99.f2 

1S.2J3.U) 


46  949.268113.812 

ll,007.!^2'3t  ►0,'><)3 

10.161 ,919|  9^.G22 

9,14?,427    59.106 

1.491,4021  87.729 


2,04\364.856| 

^a.8l9.?i^ 

7A».84,92S 

414,7^3  564 

94,937,917 

77/^52.1« 


4,7V>.4-    12J2-7.76 

5>0«0  10  >.r  00.00 

842 ')7     8  861.1-^ 

6(9.80. 136  441.1 7 

6u7.  7.  4'j,499.i:i 

?8\^|  5.841 .8 > 
7,367.Sl85'.4,'8Ji. 
1.4  i.76«    3.^2')i)6 


10,0C0.0v> 

21  \''? 
l.vfl^6i 
6.647.0*1 
4.40.S..5 
6,3>4.70 


4S.f4t5 

93.04 

50,34S 

120.>9 

1>«,3  2 

4,12>«,M.s 

I32.JH76 

64.  9 

92  T  9      6K6.67 

94,238 

912.52 

9^,088 

2,00«>.00^ 

09.194 

178.06 

T9/)O0.0u 

1.404.23 

3.177.79 

98-).4l 

1.13.973 

10,315.10 

1.100JM 

4,248,38 
14,775.96 

9,016.U 
49»92J9 
1063941 

1.684.09 


^ty  ABPKCTB  OV  OUR  DOMBSTIC   AKD  VOBKfGV  TRADE.  [J^, 

ASPECTS  OF  OUE  OOIESTIC  IRD  fOREIQX  TKAM. 

We  eball  soarcclj  subject  oursekeB  to  the  impotation  of  croaking  m 
averting  broadly  that  the  rtsuUs  of  the  Spring  trade  hare  thoB  far  been 
unsatisfaclory.    Liberal  preparations  had  been  made  for  the  season's  boo. 
nesB ;  the  demand,  however,  appears  to  have  fallen  below  the  supply  of 
goods ;  and  we  now  begin  to  witness  the  accumulation  of  stocks  and  th« 
anxiety  to  realise  usual  under  such  circumstances.     Our  trade  ^ith  tht 
South  has  afforded  little  or  no  occasion  for  complaint;  that  section  havicg 
taken  more  goods  than  at  any  period  since  1860,  and  having  also  psid  foe 
them  promptly.    With  the  West,  a  market  which  is  every  year  1srg»lj 
expanding,  the  case  has  been  otherwise.   The  decline  in  the  price  of  grun 
has  been  a  serious  disappointment  to  the  thrifty  rural  population  of  that 
section,  causing  them  to  economise  their  expenditures ;  while  the  mer- 
chants of  the  lake  ports  are  heavy  losers  upon  carrying  produce.    Tb« 
Atlantic  States  also  have  been  scanty  buyers,  the  country  merchants  geo- 
erally  showing  the  caution  which  indicates  a  lack  of  confidence  in  their 
customers  taking  any  liberal  amount  of  goods  and  a  desire  to  keep  their 
indebtedness  here  as  low  as  possible.    The  somplaint  is  universal  among 
retailers  that  they  find  the  pressure  for  credit  increasing  ana  that  collet 
tions   are  becoming  more  and  more  difficult.    In  the  manufacturing 
States,  the  profits  of  the  mills  have  not  recently  been  such  as  to  encouragd 
an  expansion  of  operations,  but,  on  the  contrary,  have  necessitated  t 
partial  contraction  in  the  mechanical  industries,  with  a  corresponding  effect 
upon  all  dependent  branches.     The  whole  case,  indeed,  may  be  summe^i 
up  in  the  statement  that,  the  South  excepted,  the  profits  upon  agricultore, 
manufactures  and  trade  have  been  unsatisfactory,  and  the  people,  cooie- 
quently,  are  compelled  to  contract  their  expenditures.    A  special  cause 
of  embarrassment  to  business  has  nlso  arisen  from  the  abnormal  conditioo 
of  our  currency  system,  resulting  in  frequent  spasms  in  the  money  maiket, 
and  rendering  it  impossible  for  merclmnts  to  get  needful  accommodatioQ 
from  the  bauks ;  this  difficulty  having  been   but  little  less  A^lt  in  i\tt 
country  generally  than  in  this  city,  where  for  seveial  weeks  it  Las  btts 
impossible  to  get  the  be.st  paper  discounted  at  less  than  10@12  per  ceot 

With  this  condition  of  the  home  trade,  we  naturally  require  a  very 
moderate  supply  of  foreign  products.  Out  people,  in  addition  to  their 
reduced  means  arising  from  the  causes  just  specified,  have,  after  the  war 
excitement,  settled  down  into  a  conservative  mood,  and  are  disposed  to 
regulate  their  expenditures  so  as  to  correspond  more  closely  with  their 
income;  and  the  finer  manufactures  and  the  luxuries  of  foreign  countries 
are  consequently  less  wanted.  Importers  however,  do  not  appear  to  have 
adapted  their  purchases  to  this  changed  condition  of  thinoa.  Q&  ibt 
contrary,  having  experiencsd  two  or  three  fairly  prosperooa  Eeasoos  vpoa 


1869]        18PSCTB  or  our  DO^Bsno  aitd  vobriok  tradb.  341 

moderate  importations,  thej  have    imprudently  rushed    into     extensive 
operatioDs,  as  indicated  by  tbe  very  large  increase  in  our  imports.    Tbo 
improved  standing  of  the  public  credit  and  tbe  consequent  demand  for  oar 
bonds  Id  Europe  have  facilitated,  not  to  say  largely  induced,  this  course 
of  tbiogs.    Bankers  have  been  the  readier  to  encourage  this  import  move- 
ment when  they  saw  that  importations  could  be  paid  for  in  bonds,  in  the 
exportation  of  i^rbicb  tbey  would  fiiid  a  pro6tab1e  business ;  and,  to  this 
extent,  tbe  late  large  shipments  of  securities  to  Europe  have  been  a  mis- 
fortnne.    Both,  importers  and  bankers  who  have  backed  them,  however, 
assume  heavy  ThVs  in  such  a  course  of  business.    The  people  are  plainly 
cot  h  a  position  to  take  the  large  supply  of  merchandise  at  its  ordinary 
Talae,  and  much  of  it  must  consequently  be  marketed  at  a  heavy  loss,  to 
be  boroe  by  importers  so  far  as  they  are  able,  and  by  the  bankers  where 
ibev  are  not  able. 

TLc  imports  at  New  York,  for  the  first  three  months  of  the  current  year 
ag^regnte  $83,163,000,  against  $62,750,000  for  the  same  period  of  last 
yev,  showing  the  very  large  increase  of  31  per  cent.  If  the  surplus  of 
exportable  domestic  products  showed  a  similar  gain,  there  might  ba  leas 
^n^ound  fur  di>sati^faction  with  this  expansion ;  but,  unfortunately,  there  is 
Dot  only  no  gain  in  the  eiports  but  a  positive  decrease,  the  total  shipments 
of  produce  for  the  period  being  $5,500,000  in  currency  less  than  in  1868. 
Tills  adverse  course  of  our  foreign  trade  has  been  in  progress  for  several 
Qontbs  past,  and  demands  prompt  attention  from  the  banking  and  import- 
ing in'erests.  Owing  to  the  delay  in  the  publication  of  the  returns  of  the 
ttatisiical  department  of  the  Treaifury,  we  are  unable  to  give  any  complete 
tuement  of  tiie  recent  course  of  imports  and  exports  for  ibe  whole 
vuDtrj.  The  trade  movement  at  this  port,  and  at  the  cotton  ports  o^ 
wlucb  we  have  <soropIete  returns  up  to  April  1st,  will,  however,  enable  us 
'o  form  a  cjose  approximate  estimate  of  tbe  movement  for  tbe  country  at 
-^2".  We  therefore  present  the  following  statement  of  the  trade  of  New 
Yoik  and  of  tbe  cotton  exports  at  the  S^utb,  for  tbe  seven  months  com- 
"iencing  with  the  cotton  year  and  ending  March  30th,  the  value  of  the 
*-xpotta  being  in  each  case  reduced  to  gold,  so  as  to  facilitate  comparison 
^'■Cu  tbe  imports,  which  are  entered  in  gold  values. 

m  BT8  AT  llVir  TOBK. 

^rua  Sept.  l,l(«R,  to  April  1,18m fl51.RW,000 

itiSI,  "  1818 137.811,000 

Ucretie oflmpcrta $23,9d6,000 

IXPJBT8  AT  KEW  TOBK. 

,  ProdiiceCffoW  ▼»lae,)      Sp^da. 

^•ymS  pt.  l,18r8,toA'"ril  1,  1^9    $»W,7"A000  $1.V00,000 

lt«7,  **  1868 7ti.!tfO,tiuO  S6,tf7i,0(;e 

,,,J^^^«Me $7,68J,0u0         $1,8:9,000 

M-Jdecie*ae  la  pro  lace 7.6^,000 

TifUl  decrease  In  exports $18,901,000 


842  A8PK0T8    OF  OUR  D0MB8TI0   AND  VORXIQV  TSADB^  [Jbf, 

szroBTS  rr  cottov  at  louTBSBir  rosM. 

Pnin  Sept.  1,18''8,  to  April  1,1909 ?}»,M9         $^Kfmm 

IWJT         \  18tfi 9»4,9i0  ISM« 

Decr6<»e 855,ttB  

IiiCroaee < |fi,8:Q,W 

It  appears  from  these  figures  that,  for  the  last  seven  months  the  imports 
at  this  pori  are  $23,985,000   n)ore  than  for  the  same  period  of  a  year 
previous,  wliJe  we  have  had  $18,902,000,  in  gold,  less  exports,  (o  setoff 
the  imports,  t'iMn  then  ;  making  a  total  of  $42,8S7,000  against  u%  at  this 
point,  as  cuinpared  with  last  jear.  The  principal  offset  against  this  adverse 
course  of  trade,  '»t  the  principal  port  of  the  country,  consists  in  the  enlarged 
thIuc  of  the  Cotton  exports  of  the  Sjuthem  ports.    A  few  month)  a'j;A,tbii 
was  a  very  fruitful  source  of  exchange,  owing  to  the  higher  price  of  cot- 
ton ;  but,  more  recently,  the  sliipments  h.ive  declined  to  surh  an  extent 
that  we  find  the  value  of  the  total  Southern  exports  of  the  staple,  for  tht 
seven  months,  to  be  only  (15,840,000  in  gold  more  than  last  y<^ar.   Rialij 
therefore,  ttie  increased  value  of  th^  exports  uf  cotton  from  the  Soui'i  c<>o- 
iributes  but  little  to  conn terbaUnce  the  adverse  b  dance  of  trjide  at  ibi^ 
port.     Nor  is  there  any  evid^^nt  rea.«on  for  supposing  that  the  course  ci 
trade  at  Boston,  Baltimore,  Philadelphia  and  the  minor  ports  will  coe- 
tribute  toward  adjusting  this  ineq  lality.     On  the  conir<try,  in  the  alienee 
of  any  indications  that  the  balance  of  imports  and  exports  at  tho^  p^rts 
is  unusually  favorable,  it  is  rea^on.tble  rather  to  conclude  that  the  rale 
which  has  obtained  at  New  York  holds  good  elsewhere.     We  infer,  thers- 
fore,  that  whatever  may  have  been  the  course  of  the  foreign  tradd  of  tbe 
United  States  for  these  seven  months  of  1667  and  1863,  the  biUn!;e  for 
the  pastsevex  months  is  fully  440,000,000  in  gold  less  favorable  than  then. 
To  what  extent  this  adverse  course  cf  trade  has  been  set  off  by  tbe  ship- 
ment of  U.  S.  bonds  and  other  securities  it  is  impossible  to  f*8ti:nate.    It 
will  be  generally  allowed  that,  within  the  period  under  review,  we  have 
exported  considerably  more  securities  than  for  the  same  time  a  year  pre- 
vious; l/ut  probabilities  are  decidedly  against  the  supposition  that  tbe 
increase  in   this   branch  of   exports  will  cover   the   above   c*»mparaUve 
deficiency  in  the  commercial  account.     Ba  this  as  it  may,  it  is  clearly  s 
perilous  policy  to  keep  up  our  present  latio  of  imports,  concurrently  with 
diminishing  exports,  with  no  other  dependence  for  adjusting  the  inm^uality 
than  pn  a.«siin)ntion  that  we  shall  still  be  able  to  send  out  our  obltgMtiuiu 
to  Europe.     Considering  how  easily  a  threatening  turn  in  the  AUhama 
negotiations  or  in  our  relations  with  Cuba  might  check  the  £  iropeao 
demand  for  our  securities,  it  is  easy  to  see  how  our  foreign  trade  might  be 
thrown  into  a  condition  of  utter  con fusiun ;  so  that  caution  in  our  furdgn 
diplomacy  is  as  much  needed  as  coutraction  among  the  importers* 


\Wt]  PUBUO  DCBT  07  TUB  UlTITSO  BTATS0.  343 

PDBUC  DEBT  OF  THB  URITED  iUm. 

Abctract  stateroeot,  ab  appears  from  the  books  and  Treasarer  retaros  id  the 
Treasory  Department,  od  the  Ist  of  April  aod  Ist  of  May,  1869 : 

i>aa*  BSARiKa  oonr  nrmnir. 

April  t               May  1.  Increts«.     DdcreaM. 

S  per eoni. bonds. $»1.aft»,800  00  $t?l  to^>00  00     $ $ 

«       -  Idlfl ...      28a.«l«,400  00     S83|,677,40U  00         

•       »        <5-«)*a)l l,60;l,t)U9,»30  00  t60i.rtisi,0O  00      9090  00  

Total t,10T,876,«50  03    «,10T.SW,700  00        S,OM  UO  

DIBT  BBABIsra  OmiBXNCT  IHTBRXST. 

6p«ret  (RR)f»ondt $5«.8n2,8  0  00    $£0  859,8 »  00  $2,916,890  00      $ 

8p.  cenCcertiflCttttft.      ...       64.(10%OOU  00      M,  4<V0DU0  1,805.000  00 

Navy  t^su.  F'd  8  p.c 14,0iH;,00O  UU      14,(JOI),000  GO 

Total 135,467,890  00     194,Utfi,89J  00         1«86&,000  00 

HATUBSD  DBBT  NOT  PBUENTBD  FOB  PATXBBT. 

T-ao  n.  dae  Ao;.  15,  *67,  J'e  A  J'y 

l&.*tf4 $1,683,10000  $1,609,600  00$ $191,500  00 

Op.c.  comp.  Int.  notes  TfibCd  Jodb  li*. 

1SC7  aiMJ  Oct.  116.  1868 8,990,690  00  8,0(7,700  00        193,600  00 

B'da  of  rexa#  ina'iy ....  96;i.0  0  UO  95i,ua0  uO      1M,61IU  UO 

Treaaurj  uou»  (old) liS.Oa  61  147,^1  i  64      8U0  OJ 

ird«or  .-^pr.  16, 1819,  Jan.    98,   1847 

AMar.  .1,  l»ki 18<>,900  00  148,0(0  00      40,600  00 

Treaa.  o  i»olMa.8,tt8 86(i,  »9  00  8l7,i»;:  00 iai,4U0  00 

Tempurary  loua... I'i8.610  UO  lh8,510  oO      

Cenld.  of  indolK*eM I.,(i00  00  1;(,UUU  UO      

Total 6,U03,  UMl  ti4       6,7 j9,113  64    $ '$itii^M  00 

DBBT  BBABXNO  BO  IMTBB38T. 

0af  ted  States  Dotea $836,015.1  >6  UO  $35tt.06').8 15  01         $1,810  00 

FraGtiuiml  curreucy dOtf.5,a^>0)      86.^J,8i4  40  1,8^5,606  60 

aeldcerU.uldepo«li 91,67x,5d0  00       16,»j;.9J00         5.<i65,800  00 

Total    414,4I8,4w6  00     407,791,868  40         $6,699,116  60 

BBOAnTOLATlOB. 

$                            $  $  $ 

BeartBST  coin  Interest. 9,107,»7«(,650  0^  2,107,8 r8,703  00  9,060  00         

Beariujjeur'yimervst. 125.457,8:1)00     1<4.0M,-1«0  UO      1.8S^UU0  00 

Maturuddvbl n,l0M0864         5.7i)«,119  64      8J  ,«M)  00 

Beariajs no  luterest 41),lU,4^iO     407,7^1,808  40      6,Ml;i,ll6  60 

Ag9«gato 9,658,750,838  61  2,6 i5,:;ut,50-i  1)4      8,866,856,60 

CoiQAcur.  inTrtfaa Ili.b0>,u.'8  .4     l!o,43),itf7  Oi  5,299,503  4tl     

DeU  leea   cola  and  eorreney 9,619,744,866 10  9,5.9,150,0u6  11    18.585,880  00 

The  rollowing  statemeDt  hIjows  the  amouDt  of  coin  aod  carreocy  separately  at 
Ibe  ilutcd  it]  the  foregoing  table : 

OOIM  AXD  OUBBBBCT  IB  TBBABUBT. 

Coin $10»,9J8,86)  li  $108,808,9 a  98  4,ta5,'^6784    $ 

CDrreucy 6,<A)i,6i;i  4i         7,0U6,.'M1  07    ),(K<tt,U85  b5       


Total  coin  A  CQr*cy 11,105,998  61     116,-^8Ji,i>>«  08    5,'^9,:0i  49      

*l  he  annual  iotercst  pajuble  ou  the  debt,  as  ejsiatiog    April  1  aod  May  l, 
IH9,  cuiiipaies  us  i'utlowtji . 

ANBUAL  IBrEBBST  PATABLB  ON  PUBLIC  DEBT. 

/prill.  Mayi. 

Oote— 5  per  cents $i:,0i9,46>  00  $:i.07.<,4ti>  00 

O    '•     1««1 17,uau,n41  UO  17,02»M»«4  UO 

**       0    *^     (5-^*S) 96,i5tf,&U7  00  9j,iA7^0  0tf 

Total  com  Interest $194,;t60,r  0  OU  $19l.i^,89'J  UO 

OirrM^-O  per  ceaU $8,851.180  93     $8,7'61,'89  90 

*-  Z         *•        X,u58,t6J(jO        9,Ul2,«tOUO 

Total  eorreney  inter't. $5,408,989  90    $6,86d,88jl2,       $10,96000 


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18$9j  CiriL  BBRTMB— TSB  ▼IB|r9  or  MB.  ./SNOVBS,  340 

Cini  SERTICE— THE  TIEWS  OF  ML  JENCKES  OX  THIS  MEASURE. 

This  ineasure,  it  should  be  remDmbered,  deals  only  with  the  inferior 
officers,  whose  appointment  is  made  bv  the  President  alone,  or  by  the 
heads  of  Departments.  It  doed  not  touch  places  which  are  to  be  filled 
vith  the  advice  and  consent  of  the  Senate.  It  would  not  in  the  least 
ioterfere  with  the  scramble  for  office  which  is  now  going  on,  or  which 
61!s  with  anxious  crowds  the  corridor?  of  the  Capitol.  It  relates  only 
to  the  appointments  which  may  be  made  in  secret,  which  seldom  meet 
the  eye  of  the  reader  of  newspapers,  but  which  are  a  hundredfold  more 
Dtiineroos  than  those  which  await  the  confirmation  ol  the  Senate,  and 
withe ut  which  the  govemment  could  not  be  carried  on.  When  I  speak 
of  candidates  and  (officers,  it  will  be  understood  that  I  refer  only  to  this 
lubordinate  class ;  those  which  long  custom  has  held  to  be  the  sport  of 
the  political  whirlwind,  cannot  seek  shelter  under  this  measure. 

Th^'re  is  a  general  confidence  that  the  head  of  the  government  will 
use  all  his  power  under  the  Constitution  to  improve  the  service,  collect 
tbe  revenue,  prevent  thieving,  and  punish  the  thieves.  But  for  this 
purpose  he  must  have  aid,  which  existing  laws  do  not  afford,  and  that 
is  p^eci^ely  what  this  measure  proposes  to  give  to  him.  It  furnishes 
iiim  with  mean?,  not  now  given  by  the  laws,  of  testing  the  fitness  of 
every  candidate  for  the  p'ace  to  which  he  seeks  appointment,  and  also 
of  testing  the  unfitness  of  any  one  who  now  is  or  who  hereafter  may  be 
in  tbe  service.  The  end  bein^  desirable,  as  all  agree,  the  present  ques- 
tion is,  solely  concerning  the  means  of  accomplishing  it. 

For  this  purpose  this  bill  gives  the  President  power  to  call  to  his  aid 
i  sufficient  number  of  competent  persons  to  perform  the  work  of  selec- 
tion well  and  promptly.  In  the  first  place,  he  may  appoint  four  com- 
missioners, who  are  specially  charged  with  the  full  performance  of  this 
duty,  and  the  execution  of  all  necessary  and  incidental  powers.  They 
may  call  to  their  aid  such  persons  of  learning  and  high  character  as  they 
may  select,  and  such  officers  of  the  civil  force,  or  of  the  military  or 
aafai,  as  the  heads  of  Departments  may  designate.  The  exigencies  of 
the  service  and  of  the  times  no  longer  require  the  establibhment  of  a 
>epanite  department  with  the  Vice  President  at  its  head,  for  the  proper 
sad  independent  discharge  of  these  duties.  These  commissi  others,  with 
their  assistants,  will  constitute  a  civil  staff,  through  whom  the  PresidenI 
^  ihe  headi*  of  Departments  can  obtain  the  knowledge  concerning 
their  subordinates,  which  it  is  impossible  for  them  to  obtain  personally. 
Ihis  ts  their  duty,  their  function ;  nothing  less,  nothing  more.  The 
power  of  appointment  remains  as  before  ;  the  responsibilities  of  office 
ve  unaltered.    It  is  objected  that  if  the  board  has  the  power  of  decid- 


946  CIVIL  8KRT10E — TBI   TIBlfB   OT  VR.  JllKmBB*  [K^i 

ing  upon  qualifications  and  of  rejecting  for  iooompetency,  it  praclicaHj 
has  the  power  of  appointment.  This  notion  results  from  the  confosioii 
of  thought  which  mistakes  the  duty  of  rejection  for  the  power  of  sdee- 
Uon.  The  duty  of  the  board  is  performed  when  they  declare  the  candi- 
date qualified.  They  perform  the  sifting  process  by  which  the  incompe- 
tent are  liept  back.  They  may  certify  ten  persons  as  fit  tor  a  certuD 
grade  of  ofHce,  yet  but  five  get  appointments.  The  Departments  take 
for  novitiates  those  certified  to  be  the  best,  but  these  do  not  receife 
commissions  till  their  merits  are  tested  by  probation. 

The  preliminary  examination  determines  only  the  best  apparent  qual 
ificalions ;  it  is  the  probation  which  secures  or  loses  the  appointmeaL 
Elementary  learning,  such  as  reading,  writing,  spelling,  geography,  and 
Arithmetic  are  to  some  extent  necessary  qualifications  for  all  ofiioen. 
By  competitive  examinations  you  ascertain  who  are  the  most  facile  in 
these  acquirements;  those  who  make  the  best  show  are  placed  apon 
probation,  until  their  other  qualities  are  tested,  and  if  they  fail  In  thifl 
trial  they  must  stand  by  and  give  place  U^t  others  of  equal  prefttig^ 
By  the  competitive  examinations  we  ascertain  what  education  the  oao- 
didates  have  received;  by  the  probation,  their  character  and  fitness  are 
developed,  or  their  unfitness  disclosed,  and  no  one  receives  a  comm» 
aion  till  he  is  found  worthy  of  it.  Under  the  present  system  the  com- 
mission is  given  first,  and  the  qualifications  of  education,  character,  iai 
personal  fitness  are  ascertained  afterward.  Although  unfitness  beconm 
apparent,  yet  all  the  influence  which  procured  the  appointment  ii 
brought  to  bear  against  the  removal.  It  is  easier  to  shut  the  doort 
against  incompetency,  than  to  eject  it  after  it  has  once  gained  admissioD 
into  the  service.  Tiie  proposed  commissioners  are  the  doorkeepers  .of 
the  entrances  to  public  employment,  to  inspect  the  evidence  of  eicb 
candidate  to  the  right  of  admission.  Government  employment  shoali 
not  be  n  school  for  the  unftduc-Ued,  or  a  refuge  for  the  incapable,  or  so 
asylum  or  charity  hospital  for  the  indigient  and  unfortunate,  as  it  is  do* 
too  often  held  to  be,  Hut  a  service  for  the  capable  and  industrious^  lo 
whom  it  opens  an  honorable  career. 

OF   THE   COMMISSION. 

Tne  success  of  the  proposed  reform  of  course  depends  upon  the  cllt^ 
acter  and  qualifications  of  the  men  who  may  receive  the  appointmest 
of  commissioners.  Although  it  is  admitted  that  there  are  mea  qualified 
fi»r  these  high  duties,  yet  it  is  intimated  that  such  men  will  not  fi&d 
these  places,  and  that  the  places  will  not  seek  such  men.  The  mos)  ia* 
aidious,  the  most  persistent,  the  most  specious,  and  the  most  hopefol 


18^9]  ciYXL  siaTios — ma  yjmwb  ov  mb.  jbnokes.  ^7 

Htack  upon  the  syslem  are  made  at  this  point.  Who  shall  examine 
the  examiners?  asks  the  gentleman  from  Pennsylvania,  (Mr.  Wood- 
ward.) What  reform  can  be  expected,  again  he  asks,  from  a  board  of 
politicians  1  Tt  is  insinuated  that  they  will  be  mere  partisans,  corrupted 
by  poliitc»il  ambition,  and  be  swayed  by  all  the  influences  which  thai 
passion  yields  to.  Nor  are  there  wanting  suggestions  of  venality  and 
grosser  corruption.  The  expression  of  the  belief  that  a  sufficient  degree 
of  virtue  is  attainable  for  such  places  is  met  with  a  continuous  derisive 
ineer. 

And  I  confess  that  all  the  venality,  the  frauds,  the  corruptions,  the 
nepotism,  the  incompetency,  the  reckless  disregard  of  the  public  inter- 
ests which  I  have  met  with  in  the  civil  service,  have  not  impressed  me 
90  much  with  the  necessity  of  this  proposed  reform,  as  these  insinua- 
tions that  the  reform  itself  would  be  impracticable  from  the  supposed 
entire  absence  of  public  virtue,  both  in  the  appointing  power,  and  in 
the  persons  likely  to  receive  these  appointments.  It  is  the  expression 
of  a  widespread  belief  that  prcifligacy  is  the  rule  and  not  the  exception 
ioour  political  system  ;  that  the  stream  is  poisoned  at  its  fuuntain  ;  thai 
the  government  is  given  over  to  its  corruptions  and  exists  by  them,  and 
not  in  spite  ot  them.  It  shows  ^hat  those  who  represent  the  political 
element,  and  seek  to  manage  the  government  for  their  own  ends,  affecl 
to  believe  that  integrity,  honesty,  honor,  and  patriotism  have  died  oul 
from  among  us,  as  they  affected  to  believe,  eight  years  ago,  that  the 
race  of  brave  men  had  become  extinct  among  the  masses  of  the  Amer- 
ican people. 

But  as  I  believed  in  their  oourage  and  patriotism  then,  so  1  believe  in 
their  integrity  and  sense  of  honor  now ;  and  that  I  know,  and  that  the 
President  knows,  many  men  who  would  select  our  civil  officers  with  as 
much  conscientiousness  and  care  as  our  military  set  vants  have  been 
lelected — men  who  would  no  sooner  permit  an  incapable,  a  drunkard,  a 
knave  or  a  thief  to  pass  by  their  scrutiny  into  a  place  wher.^  the  publie 
money  was  to  be  handled^  than  our  generals  would  have  placed  a  coward, 
ft  traitor,  or  a  renegade  upon  duty  at  an  important  outpost,  or  to  lead 
ft  charge  in  an  uncertain  battle.    There  are  heroes  in  civil  as  well  as  in 
military  life,  but  their  deeds  seldom  swell  the  poet's  song,  or  find  men- 
tion upon  the  historian^s  page.  Yet  it  is  to  such  civil  heroes  that  nations 
chiefly  owe  their  prosperity  and  happiness.    I  have  faith,  too,  that  com- 
misttiuners  who  perform  their  duty  justly,  will  gain  the  conHdence  of 
the  great  majority  of  the  people,  and  that  the  moral  weight  of  that  sup- 
port will  enable  them  to  resist  all  influenoe  which  would  seek  to  swerve 
^m  Irom  an  honorable  ooui  se. 


S48  cmh  0BRTIOB — TBI  mBWfl  OF  IIR.  YSMHEtt.  [JAy, 

"WHr  BU00XB8  MAT  Bft  BOPBD  fl>K, 

The  great  element  of  Ruccess  in  the  proposed  systein  is  the  enooungft- 
ment  and  development  in  the  civil  service  of  the  sentiment  of  hoDor; 
that  h*gh  tone  which  spurns  bribes  and  the  seductioDs  of  profligate  am- 
bition ;  that  patriotism  which  dominates  all  selfish  interests,  and  that 
resolute  energy  of  purpose  which  sacrifices  everything  to  the  peiform- 
anoe  of  duty.  When  I  have  seen  our  young  men  by  tens  of  thoasasdi 
at  the  call  of  duiy,  urged  by  patriotism,  leave  all  the  allurements  of 
home  and  the  chances  of  success  in  peaceful  life,  to  bear  the  privations 
of  the  camp  and  the  march  ;  to  brave  "  the  leaden  rain  and  iron  bail"  of 
battle,  and  the  lingering  torture  and  slow  death  of  the  prison,  to  save 
their  country  from  dismemberment,  I  feel  that  I  know  that  from  these 
same  men  there  may  be  found  a  sufficient  number  who  will  bunt  oot 
and  exterminate  the  enemies  within  the  line^,  and  face  the  corruptiaos 
of  office  as  unflinchingly  as  they  faced  death  in  war.  1  do  not  believe  that 
where  h^>nor  and  duty  work  together,  with  fair  reward  in  either  brand 
of  the  public  service,  that  the  dollar  is  almighty  to  corrupt,  or  that  the 
chances  of  politics  can  wholly  deaden  the  conscience.  It  is  in  this  failh 
that  I  advocate  this  measure ;  and  if  it  is  not  sound,  then  a  government 
honestly  administered  is  not  practicable  among  men. 

THE   MODE   or   SELSCnOK   CONSISTENT   WITH   THB   OUGIirAL   PBACnCB 

AJSX>   THEORT   OF   THB   OOVERNMBNT. 

There  are  some  who  pretend  to  think,  and  perhaps  believe  that  thef 
do  think,  that  the  proposed  system  is  an  innovation  upon  our  repablicaa 
theory.     It  is,  on  the  contrary,  a  necesMty  arising  from  the  growth  ofthe 
republic,  a  demand  of  its  intense  and  immense  vitality.     The  republicii 
idea  is  not  that  all  are  equally  fit  to  hold  office,  but  that  nil  should  bare 
a  fair  chance  to  obtain  office  through  fitness  for  it.    '*  Equality  is  eqiai 
start  for  all."     While  the  republic  was  small,  and  contained  few  more  in* 
habitants  than  the  present  population  of  the  State  of  New  York,  it  was 
possible  for  the  President  and  beads  of  departments  to  gain  sufficient  per- 
sonal krowlt*dg[e  of  all  persona  from  whom  t)«ey  would  scrlect  their  sab- 
ordinatea.    It  was  no  more  difficult  than  for  a  general  of  division  to  re- 
commend the  promotion  of  a  meritorious  subordinate  to  fill  a  raeaner. 
Competitive  examinations  and  probations  would  be  of  little  use  when  tlii 
personal  knowledge  existed,  and  the  choice  was  exercised  conscientioaslj* 
But  the  multitudes  by  whom  this  government  must  be  carried  on,  and 
the  greater  multitudes  from  which  they  must  be  selected,  have  oats^rova 
all  personal  knowledge  and  supervision.    Some  test  must  he  applied  (a 
all  candidates ;  some  judgment  muat  be  had  upon  their  qualificatioBi. 


1869]  cnrxL  sbkviob-^tbs  tiews  or  mi.  jxnckbb.  a49 

Tiis  measure  proposes  to  have  the  judgment  of  an  iiide])endunL  board 
of  qaaJified  persons,  and  that  aeoess  to  this  board  shall  be  denied  to  none. 
Wbose  judgment  will  that  of  such  a  tribunal  supersede  f  Not  that  of 
the  Pret'ideDt,  for  it  is  physically  and  mentally  impossible  that  he  should 
personally  inquire  into  and  decide  upon  the  qualifications  of  those  admin* 
islralive  subordinates  in  the  cases  where  the  appointment  is  vested  by 
isw  in  him  ;  not  that  of  the  heads  of  departments,  for  it  is  not  within 
tbeir  power  to  decide  personally  upon  the  fitness  of  their  subordinates, 
exoept  ihose  with  whom  they  come  in  contact  in  their  respective  offices. 
If  they  should  personally  undertake  this  task,  they  must  neglect  »\i  other 
duties.  What  Secretary  of  the  Interior  could  personally  decide  upon  the 
qualifitiations  of  bis  Indian  agents  or  pension  office  clerks,  or  Patent  Office 
examiners  f  The  Secretary  of  the  Treasury  has  graver  duties  to  perform 
ibaa  to  select  the  many  thousand  instruments  through  whom  he  works, 
bjr  pergonal  interrogation.  Those  duties  are  graver  than  have  ever  de- 
volved upon  any  of  his  predecessors.  The  management  of  our  immense 
debt,  the  questions  concerning  the  currency,  loans,  interest,  redemption, 
flactuationsy  or  resources,  which  are  coa^tantly  coming  in  upon  him,  may 
ippal  the  stoutest  heart  and  overtask  the  most  cunning  brain.  Though 
bis  hnir  may  ^be  as  black  as  the  raven's  wing  on  entering  office,  it  may 
become  blanched  as  the  snowy  owl's  before  leaving  it.  In  order  that  he 
may  be  spared  to  perform  those  grave  duties  in  any  manner  it  is  necessary 
ibat  be  should  be  relieved  from  all  inquiries  concerning  applicants  for 
office. 

'0  ACTUAL  JUDQIIBNT  NOW  OBTAINSD    CJPOK  THB  FIFNESS  OF  CANDIDATSa. 

Under  the  present  system  of  whom  do  the  President  and  heads  of  de- 
partments actually  inquire;  whose  judgment  do  they  get  upon  the  persons 
«ho  receive  these  minor  appointments  ?    If  every  member  of  the  House 
of  Representatives  should,  upon  the  instant,  answer  this  question,  each 
SDswer  would  be  the  same.    We  all  know  how  this  business  is  done,  and 
iiitboughthe  people  do  not  all  know,  they  are  rapidly  becoming  informed. 
lo  fact,  the  appointing  power  obtains  nothing  which  can  be  called  a  judg- 
ii*eot  upon  the  questions  of  fitness  and  character.    It  is  only  a  designation 
on  account  of  political  or  personal  services  of  persona  not  believed  to  be 
QQfit     It  is  a  way  which  custom  has  sanctioned  of  paying  political  debts. 
Xen  who  would  scorn  to  take  a  dollar  of  the  public  money  without  right, 
^\i\  not  hesitate  to  place  a  personal   or   political  friend    in   a  situation 
vbere  he  receives  jthe  public  money,  without  giving  full  consideration  for 
ii.    The  private  political  debt  is  paid  by  quartering  the  creditor  upon  the 
I>abiic  Treasury.    Is  the  office  thus  solicited  and  passed  over  to  a  friend, 
&ny  less  a  bribe  because  it  is  not  a  gift  which  can  be  valued  in  lawful 


9M  onriL  bi^rvioe — tm  vikits  or  mil  jbnckis.  [May, 

morey  f  Is  the  person  who  thus  imposes  an  unfaithfal  Bervant  upon  the 
public  less  guilty  of  Ins  peculations  ihiin  the  criminHl  himself?  Is  it  m 
solve  to  the  conscience  to  s^y,  that  if  your  man  had  not  been  accepted, 
perhaps  under  the  present  Bystem  a  more  incompetent  person  would  bavs 
beenf 

*^  PATRONAOB  **  SHOULD   HOT   XXIST, 

But  ilie  point  which  I  make  here  has  a  graver  and  deeper  siguific^ne) 
than  any  question  concerning  the  method  of  using  the  patronage  sysfen 
as  it  now  exists.  I  maintain  that  such  a  system  has  no  right  to  an  exist- 
enee  in  this  republic.  The  three  great  departments  of  this  governmeot 
are  di>iinct  and  inde))endent,  each  sui!ici<fnt  for  its  appropriate  sphere, 
and  all  nece^s^ary  for  a  harmonious  whole.  Each  department  is  also  a 
check  upon  the  otluT,  and  those  who  are  charged  with  duties  in  one,  can- 
not [iroperly  intetfere  with  those  who  are  charged  with  different  duties  in 
another.  The  executive  department  overshadows  the  others  ;  the  duties 
with  which  it  is  charged  are  the  entire  execution  of  the  laws  and  the  ne- 
gotiation of  treaties ;  and  for  the  proper  discharge  of  these  duties  tbtt 
department  is  responsible  to  the  people  and  to  the  representatives  of  the 
people.  Congress  should  furnish  the  means  for  the  performance  of  these 
duties,  and,  as  f be  representatives  of  the  people,  should  see  that  they  are 
well  performed.  They  should  keep  watch  and  ward  over  this  mighty  ex- 
ecutive power,  and  see  that  it  U  used  only  far  the  proper  administration  of 
the  government  of  the  republic,  and  not  for  corruption,  for  personal  an- 
bition,  for  perverse  partisanship,  or  fur  any  form  of  tyranny. 

Above  all  thingf^,  the  body  exercising  the  legis^lative  powers,  supervision 
the  exercise  of  all  other  powers,  and  without  whose  co  operation  no  other 
powers  can  be  exercised — that  which  holds  the  purse,  and  which  alone 
can  authorize  the  use  of  the  sword — should  never  surrender  its  indepea 
dence,  collectively  or  individually,  to  the  department  which  merely  aJmio- 
isters  wi thou b  the  power  to  provide  itself  with  the  meansof  administrit'oo. 
We  should  never  forget  that  in  the  republic  the  representatives  of  the 
people  are  nearest  to  **  the  primal  springs  of  empire,"  which  ar3  the  peo- 
ple themselves,  and  should  never  relinquish  or  cornpronc^ise  their  iDde))eD- 
dence  while  performing  their  hisfh  duties. 

Believing  thi?,  I  must  express  the  conviction  that  it  was  an  unfortunate 
hour  for  t!ie  republic  when  the  representatives  of  the  people  abdicated 
their  high  functions,  and  consented  to  become  the  recipients  and  dispen- 
sers of  what  is  called  '*  executive  patronage."  That  is,  they  beg  the  Exe- 
cutive, who  is  charged  with  the  faithful  execution  of  the  laws,  to  seek  it« 
instruments  in  such  a  manner,  that  the  members  of  the  legislative  bodies 
can  pay  ^their  political  debts  by  designating  the  persons  to  vhom  tbi 


1809]  CTTIL  •■ETXOB'— TH«  T<BWfl  07  MR.  JBVCKBA.  35 1 

execolive  nod  adinini«Urative  offices  Bhoiild  be  given.    Eacb  office  thus 
b€f towed  18  a  liuk  in  this  chain  of  '*  executive  patronage." 

But  the  executive  should  have  no  patronage.  The  word  **  patronage  '* 
implies  a  bestowal  bj  faTor  of  what  woald  not  be  obtained  by  the  reci- 
pieot  by  desert*  That  department  should  seek  the  most  capable  persons 
to  transact  the  business  of  the  people.  Its  high  offices  became  degraded 
wben  their  chief  consented  that  tbey  should  be  the  instruments  of  such 
base  Dsea.  This  surrender  6rst  introduced  the  soriiJ  element  into  our 
polilics,  and  caused  the  high  tone  of  honor,  high  character,  and  eininenS 
Uleot  to  begin  to  disappear  from  what  has  been  becoming  more  and 
more  a  dishonored  and  dishonorable  arena.  When  members  of  Congress 
became  brokers  of  offices,  as  well  as  legislators,  all  their  acts  and  votes  be* 
[rao  to  bear  the  suspicion  of  being  commercial  transitctions.  This  unholy 
Hlliarce  between  the  executive  and  legislative  departmenU,  which  the 
Constitution  created  to  be  distinct,  separate,  and  indej^endent,  has 
wrought  no  good  to  either.  It  is  an  intermingling  of  the  personnel  of 
tke  two  which  the  law  does  not  allow.  It  has  paralyzed  the  executive  in  the 
adiiiirii.HtralioD  of  the  government  by  destroying  its  independence.  It  has 
prevented  the  revenues  from  being  collected,  and  caused  tha  public  moneys 
to  be  squandered.  It  has  imported  the  alien  curse  of  **  patronage  "  into  a 
gDvernment  which  ought  to  give  an  open  career  to  all.  In  a  republic, 
which  must  always  be  divided  into  parties,  it  has  debased  their  contests 
into  struggles  as  to  which  partisans  shall  fill  the  public  oUces,  instead  of 
developing  a  noble  strife  for  the  sucness  of  principles  and  measures  upon 
which  the  prospenty  of  the  country  is  believed  to  depend.  More  than 
uij  one  cause  it  has  tended  to  estrange  one  portion  of  the  nalion  from 
soother,  and  to  embitter  the  feuds  and  inflame  the  passions  which  at  last 
'ighted  the  fires  of  civil  war. 

Now,  when  this  long  Bxid  bloody  conflict  has  ended,  and  tho  grass  is 
growing  over  its  graves;  when  the  republic  is  beiiig  reconstructed  upon 
the  principles  of  the  immortal  Declaration,  its  original  corner  Etont^,  it  has 
Itemed  to  me  wise  that  in  matteis  of  administration  we  should  also  return 
to  the  principles  upon  whioh  our  fathers  set  this  government  in  motion . 
I  would  restore  the  executive  to  its  original  independence,  and  remit  the 
I^slatnre  to  its  appropriate  sphere.  What  the  bill  proposes  is  simply  to 
hQli^h  means  to  the  Executive  to  obtain,  independent  of  dictation  from 
uj  quarter,  competent  and  faithful  persona  to  perform  the  duties  required 
of  that  department  by  the  Cons^tution  and  the  laws.  This  is  the  origin 
the  aim,  and  the  scope  ot  this  measure.  The  commissioners  and  their 
uiistants  are  the  eyes,  the  ears,  and  the  mind  of  the  Exeotitive  for  the 
■election  of  instruments;  they  have  no  power,  no  patronage ;  they  can 
neither  reward  friends  nor  punish  enemies.    It  is  true  that  they  may  not 


S$3  CIVIL  ORyios-Mini  Tonm  <ir  viu  jsitciM.  [JTiy, 

tlo  tlreir  Wvii  k  ha  well  as  all  would  wish  it  to  be  done ;  ihej  ean  be  hm 
men,  and  conaequentlv  fallible  inetramenta ;  but  no  one  can  deny  thattlwy 
will  be  better  than  do  instrumentB  at  all*-  Even  if  this  board  afaould  degen- 
erate into  a  partisan  machine,  yet  in  eonrae  of  time  it  anst  becoroe  tiM 
instrument  of  different  parlies;  and  it  seems  to  me  better,  if  our  olBeei 
are  to  be  6 1  led  with  partisans,  that  we  should  secure  the  beat  material  o' 
each  party  by  this  mode  of  selection,  instead  of  some  of  the  worst,  ss  vt 
<io  now.  And  it  is  the  worst  of  bad  logic,  as  well  as  the  poorest  of  com- 
pliments to  say  to  tlie  President  that  because  he  may  fail  to  aelect  tk 
four  men  best  qualified  for  this  board,  that  therefore  he  should  not  han 
the  aid  which  this  bill  gives  him,  but  be  obliged  to  select  through  the  pie- 
sent  more  falhble  and  less  iiopartial  instruments  the  more  than  forty  tboo- 
saod  officers  within  the  scope  of  this  meaaure.  The  same  rule  applies  toeaoh 
one  of  the  forty  thousand,  that  those  wbo  argue  against  ma  seek  to  spplj 
to  each  one  of  the  four.  The  false  logic  is  too  apparent,  and  the  corrap^ 
motive  which  advance^)  euch  sophistry  cannot  escape  detection.  Usder 
the  present  system  the  range  of  selection  is  confined  to  the  personal  sod 
political  friends  of  the  poiiticians  who  push  their  favorites.  Under  tk 
proposed  system  the  choice  must  be  made  from  the  whole  Americsa 
people.  Tiie  constituency  is  as  numerous  as  the  nadon.  Why  sboold 
not  the  republic  have  the  choice  of  its  beat  sons  for  its  service,  instesd  of 
being  obliged  to  grope  around  among  the  refuae  for  its  servants?  Whj 
should  it  not  go  at  once  into  its  vigorous  forests  of  native  growth  for  iti 
timber,  instead  of  endeavoring  to  pick  out  some  passable  atick  hers  sad 
there  from  among  the  political  driftwood  of  ita  periodical  freshets  t 

I  have  heard  it  said  by  a  member  of  a  former  Congress,  I  m*ght  saj 
more  than  one — ^l  say  nothing  of  any  member  of  the  present  Congress— 
that  he  thought  he  could  choose  better  officers  for  bis  district  tbao  nj 
board  of  examiners  whatever.  Each  of  such  former  members  might  bsre 
spoken,  not  bis  belief  only,  but  the  truth.  la  no  case  have  I  been  disposed 
to  question  it,  but  it  never  seemed  to  have  occurred  to  those  former  mam- 
bera  that  the  selection  of  executive  and  administrative  officers  was  no  psrt 
of  their  institutional  duty.  It  was  just  what  they  were  elected  not  to  do. 
They  had  no  more  right  to  claim  or  exercise  any  portion  of  the  execotire 
power  than  of  the  judicial.  I  can  fill  a  voluma  of  quotations  from  the 
fathers  to  show  how  unwarranted,  by  authority  or  tradition,  anob  a  cisint 
is  on  the  part  of  members  of  the  Legislature.  It  is  one  of  the  many  cor- 
ruptions that  have  threatened  to  change  the  character,  if  not  destroy  tbe 
existence  of  this  government,  by  t.e  intermingling  of  the  funotioos  of 
the  branches  which  the  Constitution  created  as  separate  and  declares  to 
be  distincL  The  evil  of  some  of  these  attempts  has  been  so  glaring  thst 
they  have  been  cut  off  by  penal  statutes.    Onj  was  the  seeking  of  cod- 


1860J  QVnL  IBBYIOS-^Tn   YXXW8    09  KB.  JSNCntSfl*  858 

tracts  by  memben;  ftooiher,  the  use  of  loflaeDce  at  the  departments  for 
viy  purpose  for  a  conBideratioD,  and  the  soliciting  of  oflSces  for  hire  o! 
moDey.  It  has  been  found  necessary  to  pnrge  Congress  of  these  corrup* 
tions  by  prohibitory  and  penal  statutes.  So  far  have  these  statutes  gone- 
as  to  prohibit  a  member  of  Congress  from  being  solicitor  for  a  claiman| 
in  the  Court  of  Claims,  from  acting  as  attorney  for  any  claimant  before 
any  department  or  public  officer,  and  even  from  arguing  a  case  in  court 
for  a  fee  in  which  the  government  is  a  party.  The  great,  the  chief  o 
tl  ese  corruptlona  which  yet  remain  nnprohibited  and  unpunished,  is  the 
attempt  to  gain  control  of  appointments  to  office,  the  wielding  of  the  so- 
cal'd  executive  patronage,  and  the  eiercise  theieby  of  a  share  in  the 
eit€utive  power* 

LFOISLATIYC   AMD   XZKCUTIYB  DUTIX8  SHOULD   NOT  BK  INTSBMINGLXD. 

Upon  this  subject  I  speak  only  for  myself.    I  do  not  know  that  the 
opinions  of  any  other  member  of  Congress  will,  in  this  respect,  coincide 
«i(ii  mine.    I  do  not  intend  that  my  words  shall  express  a  criticism  upon 
eiti  er  the  language,  the  opinions,  or  the  conduct  of  any  other  member  of 
C  'n;/rees.    The  constituency  which  I  have  the  honor  to  represent,  not 
ic^iciior  to  any  other  constituency  in  any  respect,  elects  one  of  the  repre- 
teDuUves  of  the  people  in  the  Congress  of  the  United  States.    It  is  his 
dutj  to  lean  closely  the  measures  propose  d  by  the  executive  department 
to  vote  for  furnishing  means  for  carrying  on  the  government  according  to 
^t-  views  of  the  administration,  when  conyinced  that  these  demands  are 
varmoied  by  law,  and  are  in  other  respects  reasonable  and  proper,  and 
for  denying  them  when  not  needed,  or  when  the  means  might  be  used  for 
iiijproper  purposes.    In  the  district  and  among  the  people  I  represent| 
^e  government  of  the  United  States  is  felt  through  its  officers  of  customs 
U(i  iDtemal  revenue;  indeed,  few  districts  acknowledge  the  tax-gatherer's 
presesce  by  larger  contributions ;  and  is  welcomed  by  its  postal  conve 
oiences,  the  presence  of  its  judges,  and  its  occasional  and  somewhat  fitful 
*i<i  to  commerce  and  manufiiotures.    It  shares  with  all  other  districts  an 
^oal  right  in  makiog  laws  for  the  whole  country,  and  sends  a  represents- 
^ve  here  for  that  purpose.    But  it  is  no  more  a  part  of  that  representa- 
tive dnty  to  seek  and  dispose  of  executive  offices,  than  to  solicit  pardons 
f<^r  traitors  or  condemned  criminals.    It  is  a  part  of  his  duty  to  prevent 
^^  appointment  of  incompetent  persons  by  general  law  if  he  can,  if  not 
h  personal  remonstrance. 

^Qt  if,  as  a  matter  of  personal  or  political  favor,  he  goes  to  'the  State 
apartment  to  beg  a  consulate,  or  perhaps  something  higher,  for  a  friend, 
or  to  the  Treasury  for  an  office  within  its  gift,  he  is  made  to  feel,  if  his 
^val  instincts  are  not  sensitive  eoongh  to  be  impressed  before  going 

8 


i 


tbere,  that  be  surreoden  hii  independeDce  as  a  legislator  wben  b^  twfit 
tbe  gift,  and  that  the  person  and  tbe  power  vvbicb  grants  bis  request  viD 

'  not  be  slow  to  claim  bis  assbtance  in  tbe  Cspitol  it  ben  it  is  needed, 
know  tbere  are  ingenious  ways  for  covering  up  tbis  barter.  Tbe  Becretaiy 
|Daj  say  tbat  be  defers  to  the  superior  means  of  knowledge  and  to  tlM 
judgment  of  tbe  member  in  selecting  his  appointeei  and  may  claim  tb« 
member's  vote  upon  an  exceptional  measure,  upon  tbe  ground  of  allegiaoei 
to  party.  But,  nevertheless,  tbe  bargain  is  made.  Perhaps  I  could  select 
as  good  executive  and  administrative  officers  in  my  district  as  any  board 
of  examiners  could  choose  for  the  government,  but  when  I  am  tempted  to 
enter  upon  tbis  businessi  I  am  checked  by  tbe  reflection  tbat  I  should  be 
a  mere  volunteer.  The  people  have  not  charged  me  with  it ;  tbe  Cossti- 
tntion  does  not  require  it  of  a  legislator ;  the  Executive  has  not  yielded 
it;  and  its  exercise  would  seriously  interfere  with  the  performance  of  my 
proper  duties. 

The  Constitution  contains  a  clause  in  restraint  of  bribery;  tbe  laws 
enacted  to  carry  that  olanse  into  effect  are  full  of  penalties  upon  the  use 
of  money  and  the  receipt  of  it  by  and  among  legislators.  I  do  not  see  tbe 
difference  between  the  bestowal  of  tbe  gift  of  tbe  nomination  to  an  office 
upon  a  member,  to  be  passed  over  to  his  friend,  a  political  creditor,  sad 
the  largess  of  a  measure  of  coin  for  the  same  purposes.  It  may  be  s 
peculiarity  of  my  own  mental  vision,  but  I  cannot  think  I  ann  doing  my 
countrj  service  by  becoming  the  almoner  of  my  party  in  the  diatribution 
of  adminibtrative  officesi  when  at  tbe  same  time  I  am  assuming  obligatioos 
to  the  executive  power  which  are  inconsistent  with  my  position  as  an  in- 
dependent legislator.  It  is  my  duty  to  aid  the  government  in  procuring 
the  best  service  that  its  salaries  will  bring,  in  every  district  and  in  s21 
localities  where  the  flag  floats;  and  that  result  I  am  endeavoring  to  secois 
by  general  law,  with  such  persistence  and  ability  as  have  been  alotted  me. 
But  no  provision  in  the  Constitution,  no  law,  no  healthy  cuatom,  autbor- 
izes  the  blending  of  the  legislative  and  executive  duties  in  this  illicit  mao- 

,  ner.  I  do  not  belong  to  the  executive  department,  nor  has  that  depsrt* 
ment  any  claim  upon  me  as  a  representative  to  relieve  it  from  the  proper 
and  responsible  exercise  of  its  duties,  or  to  stifle  my  criticism  or  choke  my 
opposition  to  their  improper  exercise,  by  inviting  or  permitting  me  to 
jibare  its  power.  If  I  perform  the  duties  with  which  I  am  changed  under 
the  Constitution,  I  must  stand  aloof  from  the  other  departmenta  of  tbe 
government,  and  exercise  the  utmost  vigilance  which  I  possess,  and  wbicb 
my  constituents  expect  of  me,  to  see  that  the  officers  of  the  other  depsrt- 
ments  perform  the  duties  which  the  Constitution  and  the  laws  require  of 
them ;  and  if  the  laws  are  weak  and  insufficient,  to  urge  a  remedy  by  nev 
fmd  wise  legislation,  which|  with  regard  to  one  defecti  I  belieTO  I  am  now 
doing. 


1869]  OIYIL  8BRVZ0X^-4RB  TXIWB  OV  MB.  JBHOXM.  855 

TBI  P&ACnOX  AND  Itt  BBSULTB  IV  TBM  VIBflT  VORTT  TXABB  OV   TBI 

OOYXSNMXHT. 

We  all  know  how  in  the  early  days  of  the  rapnblio,  appointments  to 
dTil  office  were  the  Bubjeett  of  personal  care  and  superYision  by  th^  Tres* 
ident  and  heads  of  departmenti.    The  correspondence  as  to  the  chara  ter, 
fitness,  integiity,  and  patriotism  of  candidates  was  thorough  and  exhaust- 
ive.   When  the  testimony  concerning  qualifications  was  balanced  or 
doubtful,  a  perBonal  acquaintance  was  not  unfrequently  sought,  and  it^ 
results  determined  the  choice.    The  exercise  of  this  intelligent  care  pro. 
duced  its  legitimate  results.    For  the  first  forty  years  of  the  existence  of 
this  government  under  the  Constitution,  no  people  ever  had  a  more  faith* 
ful  and  efiScient  body  of  public  servants.    Frands,  peculations,  and  defalca« 
tions  in  the  civil  service  were  almost  unknown,  and  so  heinous  was  the 
cfienee  deemed,  that  the  few  perpetrators,  in  almost  every  instance,  fled 
the  country.    Personal  supervision  by  responsible  and  capable  chiefs  was 
possible  in  those  days,  when  the  numbers  of  the  force  were  few.    The 
service  was  honorable ;  its  members  were  respected ;  removals  for  cause 
were  few  ;  political  opinions  were  not  deemed  a  cause ;  and  though  « very 
commission  limited  the  term  of  office  to  the  pleasure  of  the  President,  it 
wss  practically  for  life.    Under  that  system  the  revenues  were  faithfully 
collected,  the  public  money  honestly  kept  and  disbursed ;  our  prosperity 
increased ;  the  direct  and  indirect  taxes,  save  the  customs,  were  removed  • 
the  government,  although  generally  called  an  experiment,  gained  the. con- 
fidence of  the  people  and  of  the  world  ;  its  credit  was  strengthened  and 
remained  unimpaired ;  its  revenues  were  increased ;  its  debts  Incurred  in 
iti  two  great  straggles  for  existence  extinguished.. 

THX  OHANGC  AND  THS  TUCK  OV  FT  UNFORTUNATE. 

It  was  especially  unfortunate  that  the  change  which  made  the  civil 
o6h»s  of  the  government  the  spoils  of  party,  and  the  government  itself 
a  political  machine,  operated  for  the  benefit  of  a  party,  took  place  at 
the  time  when  the  receipts  from  customs  exooeded  all  lawful  expenditures 
snd  were  canceling  the  debt.    While  the  Treasury  from  this  source  was 
being  filled  to  overflowing,  the  people  did  not  feel  the  burdens  of  taxation 
snd  did  not  scrutinize  closely  the  details  of  administration.    They  grew 
heedless  of  the  extent  and  unmindful  of  the  consequences  of  the  vicious* 
ness  and  of  the  corruptions  that  were  eating  into  the  life  of  the  republio. 
If  it  were  not  that  everyone  is  now  made  to  feel  the  pressure  of  the  great 
nsti(»ial  debt,  the  price  of  the  nation^s  life  as  the  former  debts  were  of 
liberty,  there  would  be  little  hope  of  rousing  the  nation  to  overthrow  the 
vicious  political  system  which  from  forty  years  sufferance  has  almost 
beeome  an  aocredited  custom* 


THV  AMnOIPATlD  KSUKr. 

This  nation,  yet  in  its  yontli,  has  had  to  strugi^le  for  its  life  with  two 
enormous  evils.  One,  the  curse  of  slavery,  had  coiled  itself  like  a  lerpent 
around  the  young  republic,  and  when  its  black  folds  had  encircled  every 
limb  of  the  government,  it  sought  to  crush  out  the  spirit  of  liberty,  th< 
ioul  of  the  republic.  The  effort  of  the  natbn  to  free  itself  from  the 
crushing  grasp  of  this  reptile  enemy  was  the  greatest  dvil  war  of  all 
times.  While  [every  energy  was  thrown  into  this  straggle,  another 
equally  tnndious  and  dangerous  enemy,  bom  of  the  strife  itself,  enveloped 
and  almost  paralyzed  the  force  which  finally  laid  the  first  foe  dead  at  its 
feet.  This  second  serpent  is  the  debt  which  now  oppresses  the  nation, 
and  within  whose  folds  these  thousand  corruptions  which  we  complain  o 
are  bred  and  have  their  existence.  It  is  true,  as  argued  by  Mr.  Woodward 
of  Pennsylvania,  that  if  we  did  not  have  this  debt,  and  the  neesHity 
attending  it,  of  raising  and  disbursing  immense  sums  of  money,  we  sboaU 
not  have  these  corruptions  in  their  present  magnitude.  Tlie  propowd 
reform  is  one  of  the  methods  of  strangling  this  monster  also.  When  the 
energies  and  intelligence  of  the  people  are  bent  upon  this  enterprise  Uiers 
can  be  no  doubt  as  to  the  result  This  young  nation  will  deal  with  its 
debt  as  with  slavery,  and  both,  like  the  serpents  sent  to  atraogle  the 
infant  Hercules,  will  themselves  be  destroyed  in  its  vigorous  and  oonqner^ 
ing  grasp.  It  will  hardly  have  commenced  its  career  till  these  two  eae- 
mies  shall  have  been  annihilated. 

It  has  been  demonstrated  over  and  over  sgain,  that  our  tax  and  taiiff 
laws  call  for  $400,000,000  of  revenue  annually,  and  that  but  $800,000,000 
reach  the  Treasury.  That  this  missing  $100,000,000  is  lost  by  the 
jncompetency  and  rascality  of  some  branches  of  the  civil  service,  has  also 
been  fully  proved.  Greater  cars  in  the  selection  ot  our  servants  will 
secure  men  who  will  see  that  this  $100,000,000  will  be  restored  to  the 
Treasury,  and  enable  the  government  to  purchase  its  indebtednass  bafois 
it  comes  due.  If  we  find  the  right  men  for  the  service  they  will  find  that 
lost  dollar  out  of  every  four,  that  quarter  out  of  every  dollar,  which  dodos 
the  grasp  of  ^our  present  revenue  officiak.  Our  problem  is  to  find  moa 
honest  enough,  intelligent  enough,  faithful  enough  to  seise  that  mkmag 
dollar  which  in  the  year  swells  to  the  enormous  aggregate  of  $100,000, 
000,  and  toss  it  into  the  Treasury,  instead  of  letting  it  slida  into  tho  pock- 
ets of  corrupt  oflScials  and  their  confederates. 

WHAT  IStOAUrXD  BT  OOMPKTITIVI  XZAMIKATZOVa. 

But ,  says  Mr.  Woodward,  this  cannot  be  acoomplished  by  eompetilivs 

examinations,  and  he  argues  asif  the  whole  scope  of  the  bill  was  limited 

*to  these.    He  holds  them  up  to  ridicule  as  being  the  contests  of  bcjs  just 


1M9J  omL  uRvzoB — rm  vnws  or  utu  jbhous*  357 

from  lefaooly  determiningr  noUuBg  but  a  superior  flippancy  and  aaperfioial 
ezeelienoe.  He  does  not  deem  such  an  academic  contrivance  worth/  of 
beiog  admitted  into  the  serious  business  of  life.  He  endrelj  omits  the 
ooDsiderstion  and  value  of  the  probations*  He  forgets  that  in  some 
branches  of  this  very  business  of  public  employment,  a  competition  is 
constaotly  going  on  in  which  the  employers  are  the  examiners.  We  see 
jt  in  the  halls  of  Congress  every  hour.  The  stenographers  who  take  down 
ind  report  every  word  utteredi  have  achieved  their  positions  by  admitted, 
tfoellenoe  in  the  most  vigorous  of  competitive  examinations  and  trials. 
The  gentlemen  in  the  gallery  over  the  Speaker  receive  their  credentials  and 
a^di  of  admittance  afUr  a  mure  severe  scrutiny  into  their  qualifications, 
than  any  candidates  for  the  government  service  will  ever  be  required  to 
nbmit  to.  Every  live  business  that  is  going  on  around  us  is  organ- 
iied  on  this  principle,  which  is  absent  from  the  government  service 

lIoDS. 

This  examination  into  qualifications  and  character  will  render  ineligible 
fer  the  administrative  branches  of  the  public  service  all  the  idle,  the  lazy 
the  drunken,  the  dissolute,  the  incompetent,  the  vicious,  the  thievish.  It 
viil  exclude  the  shoulder-hitter,  the  garroter,  the  repeater,  the  pipe-layer 
the  bsllot-box  smasher,  the  false  oath  taker,  the  ward-room  bully»  the 
primary  meeting  manager,  the  ballot  changer,  the  smuggler,  the  rioter, 
tbe  peculator,  the  gambler,  the  thief.  But  in  this  representative  republic 
Ibe  avenues  to  elective  offices  will  continue  to  be  open  to  all  these.  They 
may  become  alderman,  mayors,  governors  of  States,  congressmen,  and  in 
lome  States  even  judges,  by  the  popular  choice.  This  reform  is  limited 
to  an  humbler  sphere,  though  one  which  vitally  afiects  the  public  inter, 
eita.  It  simply  provides  that  skill  and  vigor,  in  striking  straight  out  from 
the  shoulder,  when  brought  to  bear  in  behalf  of  either  party  in  a  strife  to 
capture  a  ballot-box  or  to  smash  it,  shall  not  be  considered  evidence  of  the 
champion's  qualifications  for  an  office  in  the  appraiser's  department  of  a 
ciutom  house,  or  a  clerkship  in  the  State  Department ;  and  that  alacrity 
ud  facility  in  doing  the  dirty  work  of  a  party,  shall  not  entitle  the  person 
^ned  by  these  qualities  to  a  place  where  he  shall  handle  the  public 
moneys.  I  have  no  fear  that  the  persons  who  seek  these  lesser  places,  will 
^  too  learned  or  too  competent.  Young  men  who  seek  the  great  prizes 
(f  life,  will  not  imprison  their  energies  or  capacities  in  this  limited  sphere* 
We  shall  not  coax  distinguished  scholars,  adorned  with  university  honors, 
iDto  post  office  clerkships,  or  make  them  custom-house  weighers  or  whis- 
kej  gangers.  We  shall  not  require  Hebrew  and  Greek  in  the  Indian 
Bareau,  or  the  higher  mathematics  in  the  State  Department  But  we 
ihall  require,  and  shall  succeed  in  obtaining,  fitness  for  our  work. 


S68  oira  snnax — ths  ttkwb  of  xb*  jbvoku.  [Jfiqfy 

nDKLHT  IH  THX  mVOR  OmOXS  WILL  BKOVAB  nmORIlT  UT  TBI  moiBk 

But  it  is  objeoted  that  as  this  measure  deals  only  with  the  inferior 
offices,  it  will  not  check  the  thieving  which  Mr.  Butler,  of  Massachosetts, 
alleges  is  chiefly  performed  by  those  of  higher  grade.  He  insinostesi 
although  he  has  not  directly  asserted,  that  the  deficiencies  in  the  re?enM 
are  owing  more  to  the  vices  of  collectors  and  assessors  than  to  the  derb 
and  subordinates.  But  if  their  clerks  and  subordinates  are  honest,  faith- 
lul  and  diligent,  how  can  their  superiors  be  dishonest  without  detection! 
No  one  knows  better  than  the  gentleman  from  Massachusetts  that  tU 
money  is  not  stolen  after  it  comes  into  the  hands  of  these  great  officers,  or 
into  the  coffers  of  the  State.  These  magnates  do  not  boldly  commit  gn&d 
larceny  with  comparative  impunity,  for  tfaey  are  surrounded  by  too  m»j 
checks  to  make  this  kind  of  appropriation  safe,  it  would  be  as  great 
folly  for  them  to  make  such  an  attempt,  as  it  would  be  for  a  covetooi 
commander  of  a  department  m  war  time  to  put  his  hand  into  the  militarj 
chest  and  convey  the  contents  to  his  own  pocket.  Such  great  embesle- 
ments  cannot  be  effected  without  a  back  door  to  his  headquarters  aad 
convenient  and  pliable  aids,  quartermasters,  commissaries,  sutlers,  and 
storekeepers — his  creatures,  ready  and  willing  to  join  in  the  publie  plan- 
der.  If  the  dishonest  collector  cannot  have  his  choice  of  instruments;  i( 
on  the  other  h«nd,  all  his  subordinates  are  selected  for  their  honesty  and 
capacity  by  men  over  whom  he  can  have  no  influence  or  control,  thea 
they  are  guards  over  him,  as  well  as  over  the  smugglers  he  would  favor, 
and  peculation  becomes  impossible,  except  by  actual  crime.  Each  n  a 
watch  over  the  other,  and  if  one  becomes  a  thief,  detection  will  be  quick 
and  punishment  certain.  I  do  not  deny  that  large  sums  hare  bees 
diverted  from  the  Treasury  by  the  connivanoe  of  the  higher  offioei«i  bst 
it  has  been  done  with  comparative  impunity,  only  when  they  have  bd 
the  designation  of  their  subordinates,  who  have  been  in  fact  their  accoiB- 
plicea. 

WHAT  SORT  or  AH  ARI8TO0SACT  XT  OftSATXS. 

Of  all  the  objeciiona  to  the  proposed  reform  the  moat  singular  is,  tto^ 
which  denounces  it  aa  creating  an  aristooraoy  which  may  tend  to  cfasBge 
the  character  of  our  republioan  institutions.  An  aristocracy  is  gaieraOj 
understood  to  be  a  governing  class,  which  through  the  chances  of  iotin- 
nate  birth,  great  wealth,  family  oonneotions,  social  influence,  and  tpedal 
education  are  enabled  to  exercise  a  controlling  power  in  the  goveraincBt* 
We  associate  the  term  with  great  estatea,  liberal  expenditures,  floe  eqn|M- 
gea,  lordly  manners,  brilliant  asaemblies,  armorial  bearings,  and  all  tbe 
insignia  of  hereditary  nobility.  But  alas  for  the  comparison  I  Withie 
the  scope  of  this  bill  there  are  not  a  hundred  oflloen  whose  sabries  are 


1869]  CITIL  8ERTI0S — TRB  TXXWS  OV  UR.  JKN0KB8.  859 

over  $3,000  a  year,  and  the  arerage  is  less  than  11,200.  These  are  filled 
vith  hard-worked  drudges,  whose  hours  of  Unl  are  from  six  to  ten  each 
day.  An  aristocracy  of  depaty  collectors,  clerks,  inspectors,  mail  agents* 
Indian  a:^nts,  letter  carriers,  light-house  keepers,  and  tide  waiters  I  It 
is  true  that  the  bill  provides  means  for  obtaining  the  best  persons  for 
tbe^o  places;  bat  he  who  cnn  see  an  arist)cracy  in  this  host  of  subalterns 
—in  the  offensive  or  dangerous  meaning  of  that  term — must  be  in  that 
ealentare  of  the  brain  which  can  discern  green  fields  in  the  waves  of  the 
lea,  or  observe  men  as  trees  walking.    It  is  a  mirage  of  an  over  heated 

« 

intellect 

If  such  an  aristocracy  were  created  by  this  measure,  we  should  see  the 
flower  and  cream  of  it  here  in  Washington.  Its  lords  would  be  the  poor 
clerks  who  perform  dusty  drudgery  in  the  departments,  and  beg  and 
beseech  us  for  an  additional  twenty  or  ten  pet  cent  of  pay,  in  order  that 
they  <nay  meet  ibeir  board  and  grocery  bills;  and  the  queens  of  that  dan- 
gerous society  would  be  the  poor  women  who  clip  and  count  the  paper 
currency  in  the  Treasury,  or  copy  records  in  the  Patent  Office.  These 
*^ blunted  aristocrats ^  on  $1,800  a  year,  and  these  " flauntins^  ladies''  on 
t900,  may  disturb  the  dreams  of  the  gentleman  from  Illinois  [Mr. 
Logan],  but  the  Constitution  can  withstand  their  insidious  plottings. 
Althout/b  we  deal  only  with  subalterns,  there  is  not  enough  in  this  aristo- 
eratical  notion  to  bring  out  of  it  a  new  farce  of  ^High  life  below  stairs.** 
It  runs  itself  into  the  ground  without  comicality. 

It  is  true  that  they  furm  a  class  by  themselves,  excluded  from  the  actual 

business  of  the  world,  and  seeming  to  be  connected  with  the  business  of 

the  Siite,  earning  a  miserable  pittance  by  reluctant  labor,  their  energies 

psralyzed,  and  their  hopes  extinguished  by  the  uncertain  tenure  of  their 

employment;  but  that  th^y  should  ever  become  one  of  the  dangerous 

classe.4  is  a  new  if  not  a  patentable  discovery.    Among  them  are  some 

noble,  faithful,  earnest,  hard-working  men  and  women,  worthy  of  respect 

and  d^ervin^  of  honor.    Would  that  they  were  all  such,  and  that  here* 

after  they  may  be,  is  one  of  the  objects  of  this  measure.    I  have  not  met 

with  one  of  this  better  class  who  has  not  said  to  me,  make  your  tests  by 

("umination  and  probation  as  rigid  as  you  please ;  we  will  gladly  submit 

to  them  if,  after  having  paased  them  honorably,  our  offices  shall  thence* 

Ibrtli  become  permanent  and  respectable.    They  know  and  feel,  and  the 

whole  people  are  beginain>r  to  perceive  that  the  aristocratic  element  in 

our  system  is  the  patronage  which  bestows  its  gifts  upon  favorites,  which 

reoioves  faithful  public  servants  from  caprice,  and  which  places  the  worthy 

beneath  the  worthless. 

That  merit  shall  have  the  places  it  deserves  is  the  true  republican  doe- 
trine,  and  the  measure  which  is  devised  to  brin^  forward  and  advance 


860  OIYXL  BSBTXOl— ^TBM  TIKWB  OV  MB.  iBVOBBk  [ifiiy, 

meriti  aod  merit  alone,  in  the  puUic  eeryioe,  ia  tha  keen  edge  cf  the  en 
to  the  root  of  theee  alieiii  oorrupt,  aristocratical  praoticea.  Its  benefiti 
will  be  at  once  felt  in  the  better  spirit  and  higher  tone  which  will  be 
developed  in  each  officer.  Hitherto  the  position  of  all  these  subordinste 
officers  has  not  been  merely  a  servioe,  but  a  senritude.  The  mode  of 
obtaining  office,  and  the  servility  necessary  to  retain  it,  ha?e  brought  into 
action  the  worse  qualities  of  those  thus  serying.  But  when  the  ofiieer 
obtains  his  place  by  his  qualifications  for  it,  holds  it  during  efficieDoy,  sad 
can  be  advanced  by  merits  he  becomes  independent  of  the  courtier*s  or 
politician's  arts,  and  his  best  qualities  are  developed  instead  of  his  wont. 
Not  the  least  beneficial  effect  of  thia  measure  in  this  em  of  emaadpa- 
tions,  will  be  the  abolishment  of  the  servitude  of  oflioe,  which  has  been  a 
blight  upon  the  service  and  a  curse  to  the  republic. 

I  admit  that  if  the  measure  should  be  strictly  enfoieed,  the  govcnuneat 
servants  would  become  a  class  with  distinctive  qualities.  In  that  dsM 
would  be  found  only  the  qualified,  the  honest,  the  faithful,  the  capabls 
the  energetic,  the  patriotic,  the  competent,  while  the  oppositea  of  all  thesB 
would  be  turned  back  at  the  doors  of  the  examination  balk.  It  briogi 
into  the  public  service  only  the  skilled  laborer,  whose  education  haa  beea 
in  a  great  measure  completed  before  he  receives  his  pay  from  the  peopled 
money ;  while  under  tie  present  system  the  |ieople  pay  the  greater  por- 
tion of  those  who  are  thrust  into  their  service  while  their  education  ii 
going  on,  and  vhich  in  many  cases  never  is,  and  never  can  be,  oompleted* 
The  proposed  law  elevates  the  meritorious  and  rejects  the  unworthy.  If 
this  be  ^  claea  legislation,"  make  the  most  of  it. 

The  most  disingenuous  of  the  attacks  upon  thu  measure  is,  that  it 
creates  a  life  tenure  of  office  in  these  subordinatea.  The  present  bill  is  so 
drawn  as  to  remove  ^  ny  possible  pretext  for  that  charge.  It  merely  hokk 
on  to  the  faithful  officer,  as  long  as  he  performs  his  duties  effidentlj; 
when  he  falls  below  the  standard  it  puts  him  out  The  interest  of  tbs 
government  only  is  regarded,  not  that  of  the  servant  It  may  he  cruel 
in  many  cases  to  the  old  and  meritorious  officer,  but  it  is  the  hard  condi- 
tion upon  which  he  is  allowed  to  serve  at  alL 

It  is  also  argued  against  the  provision  for  promotions  for  merit  by  tbt 
gentleman  from  Illinois,  that  it  might  be  used  unfairly,  as  he  intimstei 
some  advancements  were  made  by  boards  during  war  time.  Again  wt 
meet  the  same  false  logic  that  was  used  with  regard  to  the commissioaen 
Because  individual  cases  of  favoritism  or  incorrect  judgment  may  oeeor 
in  the  Mdministration  of  a  system  framed  for  just  ends*  therefore  no  Bach 
system  should  be  esUblished  at  all,  but  every  thing  should  go  by  &vor 
and  the  consideration  of  merit  be  entirely  excluded.  Because  merit  might 
not  in  a  few  cases  get  the  desert  to  which  it  is  entitled  under  this  system 


I860]  CITIL  8SBVX0S-— THB  YXSW8  OV  MB.  JXNOKX0.  861 

therefofe  merit  •houM  not  haT«  the  ohwioe  to  win  desert  at  all  in  the' 
pubiic  serYioe.    This  is  the  tarn  of  that  so-called  argument 

Nor  is  it  a  valid  objection  to  the  measure  that  it  does  not  include  the 
the  higher  officers.  By  the  Constitution  these  are  left  to  the  exclu8i?e 
jariadiction  of  the  President  and  Senate.  It  is  a  most  inaiduous  opposi* 
tion  to  a  measure  that  it  does  not  go  far  enough.  It  is  a  pirt  of  the  false 
logic  I  have  already  commented  upon,  that  would  argue  that  we  should 
not  attempt  to  do  any  good,  because  we  do  not  undertake  at  one  effort 
all  that  may  be  supposed  attainable.  But  the  limit  in  this  case  is  not  of 
my  seeking:  it  is  found  in  the  Constitution  itself.  The  most  that  can  be 
done  in  that  higher  sphere  is,  to  give  the  higher  powers  the  use  of  the 
means  whicb  we  create.  The  bill  proposes  to  do  this.  For  the  results  we 
are  not  at  all  responsible,  for  they  are  now,  and  must  continue  to  be^ 
beyond  our  jurisdiction  or  oontrol. 

WET  TBI  XXPIRIXircn  OV   OTHBB  COUNTRIIS  SHOULD  BS  TAKXN 

▲DYANTAOX   OJ. 

It  is  objected  that  the  examples  drawn  from  other  governments,  ^  des- 
potic or  monarchical,''  "  never  can  or  oufthi  to  become  a  rule  for  a  free 
republic.'*  **  It  is  one  of  the  great  vices  of  the  bill,"  savs  he,  "  that  it  is, 
not  built  upon  the  American  ideas  of  government,  but  upon  those  of  the 
Old  World."  He  says,  further,  that  cur  Constitution  *^  starts  all  the  peo- 
ple even  in  the  race  of  life,  and  recognizes  no  distinctions  except  ftuoh  as 
they  create  themselves,"  This  is  predsely  what  this  bill  proposes  to 
secure  to  every  citizen,  according  to  the  spirit  of  the  Constitution  as  the 
gentleman  interprets  it  Across  the  avenues  to  public  employment  are 
now  placed  bars  which  are  taken  down  only  for  political  and  personal 
firiends  of  the  person  who  holds  the  appointing  power,  or  for  tho^e  who 
have  exerted  influence  for  the  party  to  which  that  person  belongs,  or  to 
those  who  may  work  for  that  party,  if  admitted  within  the  magic  circle  o' 
oflSce,  This  measure  proposes  to  throw  down  all  these  bars.  Every  one 
IS  to  have  a  fair  chance.  Every  young  man  in  the  country  is  to  have  the 
opportunity,  if  he  chooses,  of  competing  for  the  privilege  of  entering  the 
public  service,  and  to  be  entitled  to  the  right  to  enter  it,  if  he  proves  that 
he  has  prepared  himself  for  it  better  than  his  competitors.  Ita  priuoiple 
is,  that  the  people  have  a  right  to  the  service  of  the  best  men,  and  that 
Uie  best  men  have  the  best  right  to  serve  the  people.  If  this  be  not  the 
tme  idea  of  the  republic,  my  studies  have  been  in  vain.  And  even  if  the 
selection  should  be  confined  to  the  party  in  power,  the  honest  applicaUon 
of  this  measure  would  secure  the  services  of  the  best  material  from  each 
party  as  it  came  in  power,  instead  of  admitting  some  of  the  worst  of  each 
ss  under  the  present  system. 


S6d  oim.  raRYiOE — thb  tiewb  or  me.  jsvckm.  [ifiqf, 

Bat  tbe  idea  that  we  should  not  tak^  a  bint  from  the  improvemeDts  ia 
the  niaobinery  of  admintatratton  made  in  other  conntries,  beeaojie  tlnir 
goyernmento  are  '*  despotic  and  monarchical,''  is  as  ridiculous  as  it  i<  pre- 
posterous.   Tbe  same  rale  woald  require  us  to  reject  tbe  sleam-eogiM 
the  railway,  and  the  locomotive,  because  they  came  from  Great  Bptais, 
and  tbe  art  of  prinUng  because  it  came  from  Germany,  and  all  inTentum 
and  discoveries  in  tbe  arts  and  sciences  which  may  origin  Ate  amcoj^  tbs 
subjects  of  the  emperor  of  the  French,  or  the  autocrat  of  all  the  Rsmsi. 
These  free  trade  men  upon  all  articles  of  manual  manufacture  would  bs 
prohibitionists  upon  ideas  and  inventions.    Tbey  ibrget  that  the  soiesee 
of  government   is  progressive,  and  that  all  improvements  in  it  are  tha 
common  property  of  the  human  race,  to  whom  governments  of  some  sort 
•re  a  necessity     The  great  family  of  civilised  nations  are  eontinufilly  b(x^ 
rowing  from  and  giving  to  each  otler,  [and  gaining  by  the  eidiangs.   Ik 
never  could  have  entered  into  the  mind  of  any  but  a  Pennsylvania  Deno- 
crat,  who  has  been  educated  in  tbe  belief  which  he  still  clings  to,  that  lbs 
administration  of  Andrew  Jackson  was  the  perfection  of  civil  goTerameat, 
that  we  should  not  seek  and  receive  lessons  from  the  experience  of  other 
civilized  nations,  especially  when  that  experience  is  in  t^e  line  of  our  <wb 
innovations  upon  ancient  traditions  in  opening  a  career  for  the  childrta 
of  the  people,  and  not  merely  for  '*  privileged  classes*'  and  ** aitsiocrstie 
rank-t,**  or  ^  the  younger  sons  of  a  landed  nobility.'' 

We  should  remember  that  our  present  system  of  appointments  to  offios 
is  of  monarchical  origin,  and  is  copied  frt>m  that  of  the  parent  natioB* 
Our  fathers  adopted  the  best  system  which  tbey  knew  of.  They  did  aot 
invent  any.  The  offices  which  they  created  weri  to  be  held  at  the  pbs- 
sure  of  the  President.  The  commissions  for  all  inferior  offices  within  tbe 
scope  of  this  bill,  still  read  that  the  office  is  to  be  held  during  the  pleasaie 
of  the  superior  firom  whom  the  appointment  is  received.  This,  in  1787, 
was  the  best  known  mode,  and  the  &thers  of  the  republic  adopted  it  ss 
the  best  It  was  not  till  some  years  later  that  the  French  rqMiblic  dis- 
covered a  better.  Bat,  like  many  good  things  evolved  in  that  Revoh* 
tion,  it  was  lost  sight  of  among  its  companion  evils,  and  has  bat  recendy 
become  apparent  bO  the  civilised  world.  And  when  its  value  has  ones 
been  discovered,  we  look  further  and  find  that  it  has  existed  as  an  imme- 
morial usage,  in  the  most  ancient  of  cirilisations,  and  that  it  is  the  aeont 
of  the  long  continuimce  of  tbe  government  of  tbe  greatest  of  the  orientil 
nations.  Like  many  other  arts  and  inventions,  it  was  known  to  them 
before  our  civilixations  were  bom. 

We  are  constantly  borrowing  ideoa  in  jurisprudence  and  in  legidaticn 
from  other  countries.  All  our  jurisprudence  is  based  upon  that  of  the 
country  from  which  our  first  colonists  emigrated,— ^England,  monareUssl 


1869]  exvxL  BSBVios — trb  txxwb  or  hb.  jinokiBm  S68 

EogUnd.  Oar  governnieDt  itself,  with  an  executive  chief,  oar  represen- 
Utire  legialatare  and  independent  jadiciary,  are  all  Copied  from  the  same 
model.  We  have  made  what  we  diink  are  many  improvements  upon 
(hat  system,  hut  if  we  should  reject  other  improvements  made  in  the 
psrent  coantry  becaose  first  made  there,  we  might  as  well  reject  the 
parent  system  itself.  Underlying  all  our  eonstitutions,  all  our  legislation, 
oolonial,  State,  and  national,  is  the  great  oommon  law  of  England ;  a  sys- 
tem of  jarisprodence  whose  merciful  maxims,  wisely  admioistered,  have 
done  more  for  the  improvement  of  the  human  race  in  civil  government 
than  any  utterances  save  those  upon  the  Mount — ^the  common  law  of 
England,  which  is  to-day  the  rule  of  action  for  more  millions  of  the 
hofflsn  race  than  any  other  system  of  jurisprudence  which  ever  emanated 
from  man's  experience ;  whose  vigorous  root  and  giant  growth  have  sent 
its  offshoots  over  the  land  and  under  ^  the  sea,  wherever  colonies  of  the 
parent  nation  have  been  planted,  on  every  continent  and  in  every  clime; 
which  have  again  taken  root  and  flourished  with  a  vigor  equal  to  the 
parent  stock ;  who  fair  flower  has  been  the  pet  feet  freedom  of  thought 
and  speech  to  all  whom  it  shelters,  and  whose  ripe  fruit  is  the  perfect 
eqsslity  cftA  men  before  the  law.  It  would  be  as  unwise  so  reject  any 
improvements  upon  that  law,  as  to  attempt  to  reject  the  law  itself.  And 
as  of  the  law^  so  of  improvements  in  administration  which  are  akin  to  it 
Nothing  can  he  more  foolish  than  for  any  man  to  believe  that  all  wisdom 
dwells  in  one  man's  head,  or  in  the  practice  and  policy  of  any  one  nation. 
We  render  to  other  nations  far  more  striking  results  of  experience  in  civil 
govemment  than  they  can  give  to  us,  for  in  them  history  but  repeats 
itself  in  the  main ;  and  while  we  absorb  yearly  some  hundreds  of  thou* 
umdsof  their  citizens,  we  should  be  unwise  to  reject  the  pra3tices  by 
which  the/  make  their  administration  more  perfeetand  their  governments 
more  secure. 

THB  BOOKOlCr  OV  THB  MXABURU. 

In  ite  economical  aspect  I  also  ask  for  this  measure  the  approval  of  the 
House  and  of  the  country. 

The  gentleman,  Mr.  Woodward,  of  Pennsylvania,  has  figured  up  the 
annua)  expense  of  the  commission,  including  all  salaries  and  incidental 
sxpenses,  at  about  $60,000,  and  I  think  they  would  not  exceed  that  sum. 
He  omits  to  estimate  the  credit  to  which  it  would  be  entitled  from  the 
fseeipt  of  fees;  nor  does  he  reflect  that  the  sum  of  the  salaries  of  the 
appointment  clerks  now  employed  in  every  department,  and  in  the  prind- 
psl  post  offices  and  costom  houses  exceeds  all  the  salaries  and  expenses  of 
the  commission.  This  mote  in  his  eye  prevents  his  seeing  the  hundred 
millions  that  we  lose  for  want  of  some  system  like  this.  On  the  day 
^hen  this  measure  was  defeated  by  a  majority  of  two  votes  in  this  House 


864  Cini.  BBRYIOB— ^HB  TEKWS  09  MB.  jnrCXM.  [Jft^i 

in  the  Thirty-Ninth  CoDgreaa,  a  fraud  was  detected  in  the  Trearary,  p«- 
petrated  by  a  derk  who  had  procured  bis  appointment  under  an  afiaiy 
which  could  not  ha?e  been  d'^ne  if  the  proposed  commission  bad  bess  is 
exiatencei  to  an  amount  which  would  have  paid  the  expenses  of  aoommii- 
sion  for  a  year.  While  the  bill  was  under  debate  during  the  setsioo  of 
the  Congress  jast  dosed,  the  amount  disooTcred  to  have  been  lost  in  tbe 
drawbacks  frauds  in  a  single  custom  house,  and  whidli  never'could  hsis 
been  committed  under  the  proposed  system,  would  have  pud  the  expeoMi 
of  tbe  commission  for  at  least  ten  yean.  I  speak  only  of  partidilir 
instances  of  disco?ered  embexslements.  We  all  know  that  the  amount 
which  annually  dissppears  from  our  revenues,  would  pay  tbe  expeuei  of 
the  commission  for  a  thousand  years.  We  hire  the  reapera  that  tbe  hsr 
▼est  may  be  gathered ;  but  parsimony  like  that  whidi  b^pvdgn  the 
expense  of  this  inquest,  would  let  the  grain  rot  on  the  ground  befon  it 
would  pay  the  hire  of  the  laborer. 

Nor  is  this  loss  alone  in  the  faibire  to  oolleet  the  revenues ;  it  is  slmoit 
as  flagrant  in  tbe  expenditures.  The  chairman  of  the  IClitary  G>mmiUes 
in  the  last  House  dedared  on  this  floor  that  out  of  every  dollar  appropris- 
ted  for  the  benefit  of  the  Indians  but  twenty  cents  waa  ever  received  hj 
them.  We  have  just  appropriated  $4,500,000  for  their  benefit,  and  oo 
his  estimate  eighty  per  cent  of  this  sum  must  be  a  dead  loss.  We  bara 
also  just  appropriated  $8,000,000  tor  the  collection  of  our  internal  refo- 
nue,  about  five  per  cent  on  the  total  receipts;  while  in  other  ooantriei, 
with  a  well  ordered  revenue  service,  it  costs  less  than  two  and  a  half  ptf 
cent  for  collection.  In  the  customs  the  cost  of  ooUection  is  about  eqoailj 
extravagant  Much  of  the  loss  is  due  to  positive  dishonesty  ;  nearly,  if 
not  quite,  an  equal  amount  to  incapadty.  We  do  need  an  accesnon  of 
intelligence  as  well  as  integrity  to  this  branch  of  the  dvil  service,  althoogk 
from  what  has  been  said  in  former  discussions  some  members  do  not  Mem 
to  think  so.  I  have  seen  custom  house  derks  who  knew  no  more  of  tha 
foreign  wdgbts  and  measures  in  the  invoices  placed  before  them,  sod  of 
the  coinage  in  which  the  artides  were  valued,  than  they  did  of  Sanscrit; 
and  appraisers  who  had  no  more  idea  of  the  manner  in  which  the  goodi 
they  were  called  upon  to  value  were  manufactured,  or  of  the  cost  of  man- 
uboture,  than  of  tbe  physical  constitution  of  the  moon;  and  gaugerB  v1h> 
could  not  read  the  instruments  put  into  their  hands;  and  collectore  sod 
inspectors  to  whom  the  common  chemistry  of  distillation  was  as  much  un- 
known as  any  of  the  lost  arts.  A  former  member  of  the  House  of  Repra- 
sentatives  told  me  of  one  who  said  he  could  tdl  the  strength  and  qaslitj  of 
whiskey  better  by  the  ^  taate  and  the  bead**  than  he  could  by  any  of  nbaie 
new-fangled  instruments."  It  would  require  numerous  relays  of  such  offioan 
to  obtain  correct  returns  from  a  single  distillery.    Thers  issamach 


1869]  CXm.  URTICB— THS  TIBWS   or  XR.  J1KCXB8.  365 

aktraoted  and  withheld  from  the  reyenae  nDder  the  noses  of  inoapables, 
as  through  oonniYance  with  the  dishonest.    The  gorernment  is  plundered 
as  well  as  defrauded ;  and  so  great  is  the  extent  of  the  thievery  that  the 
amount  of  it  woald  buy  up  the  national  debt  before  it  is  due.    Is  it  not  a 
measure  of  economy  to  famish  means  to  the  executive  department  to  pre. 
fient  a  check  to  these  gigantio  frauds  t    It  may  not  be  thoroughly  auo- 
cessful ;  no  legislative  measure  can  be ;  no  millennium  can  be  brought 
about  by  act  of  Congress.    Tet  the  service  can  be  improved  by  it     This 
measure  simply  proposes  to  fill  a  void  in  the  present  system,  caused  by 
the  great  growth  of  the  country  and  its  business.    The  garments  which 
clothed  it  in  its  jonth  are  now  altogether  too  small  for  it.    We  roust  pro- 
Tide  for  its  preaent  and  fatwre  gigantio  proportions.    We  cannot  return 
to  (he  simpler  and  cheaper  practices  of  earlier  days.    This  government 
cannot  be  aet  back  into  the  condition  in  which  it  was  in  the  days  of  Pres- 
ideDt  John  Quincy  Adams.    Tou  m^ght  as  well  undertake  to  remand  it 
to  the  colonial  condition.    All  our  legislation  should  be  based  upon  the 
possible  requirements  of  fitty  States  and  a  hundred  million  people.    We 
&hall  reach  that  stature  before  the  heads  of  our  young  men  shall  grow 
white ;   and  if  the  government  shall  have  honest  and  capable  men  in  its 
senrice  and  no  others,  the  preaent  burdens  of  taxation  upon  the  people 
would  diminish  so  rapidly,  that  their  previous  existence  would  be  as  soon 
forgotten  aa  was  the  debt  of  the  war  of  independence  funded  by  Hamilton, 
Tho^^e  with  whom  we  d«  al  financially  most  not  only  be  impressed  with 
the  extent  of  our  resources,  bnt  also  must  be  made  to  have  faith  in  the 
hoDesiy  of  the  administration  of  our  revenues.    The  oredtt  of  this  govern* 
ment  would  stand  higher  than  any  other  upon  the  money  exchanges  of 
the  world,  and  the  government  itaelf  would  receive  what  is  its  just  due^ 
the  respect,  the  reverence,  and  the  love  of  all  mankind. 
B<}low  we  give  a  copy  of  Mr.  Jeackes'  proposed  bill. 


A  bill  to  regulate  the  civil  service  of  the  TTnited  States. 
Be  it  tnacUd,  Ae^  That  hereafter  all  appoiotmeots  of  civil  officers  in  the  several 
departments  of  the  service  of  tbe  Uoited  State*,  except  postmasters  and  such  officers 
M  ire  by  law  required  to  be  appoioted  by  the  Preeideot,  bv  and  with  the  advice  sod 
eoiM«Dt  of  the  Senate,  shall  be  made  from  those  peraons  who  shall  have  been  found 
bet  qualifted  for  the  performance  of  the  duties  of  the  offices  to  ivhirh  such  appoint- 
ments  are  to  be  made  in  0(>en  and  competitive  ezaminati  ns,  and  after  terms  of  pro- 
hiivn,  to  l>e  coadncted  and  regulated  as  herein  prescribed. 

8ic.  8.  And  be  it  fbrther  enacted,  That  there  shall  be  appointed  by  the  President, 
by  tod  with  tha  advice  and  cooeent  of  the  Senate,  a  bdard  of  four  oommisnioners, 
vho  ehall  hoM  Uieir  offices  fir  the  term  of  tye  years,  to  be  called  the  civil  eervice 
eiamioation  board,  among  whose  duties  shall  be  the  following : 

Pint— To  prescribe  the  qualifications  reqoit*ite  f  v  an  appoutment  into  each  branch 
aod  grade  of  the  dvil  eervice  of  the  United  States,  havii^;  regard  to  the  filoees  of 
each  cuidid>ite  in  rspeet  to  age,  health,  character,  knowled^  and  ability  for  the 
bnach  of  service  into  which  he  seeks  to  enter. 


366  CiriL  8SRVI0B — THK  YISW8  OV  MB,  ^nrCKBS.  [Jf^i 

Second — ^To  proTide  for  the  examtnaiioBt  Mid  periods  uid  eooditiQiii  of  pnbifioi 
of  sU  peraons  eligible  under  tbb  act  who  maj  preeeot  tbemaelYes  Ibr  ndmiwaon  inlo 
the  civil  lerTiee. 

Third—  To  etUblieh  rulce  governing  the  appUeetione  of  enoh  pereom,  the  tiom 
and  places  of  their  examination*,  the  sobjeets  npoo  which  such  examtoatioos  ihd  be 
had,  with  other  inddenta  thereof,  and  the  Moda  of  eonduoting  the  snme,  and  the  bib- 
ner  ot  keeping  and  pi  eeerving  the  reoorda  thereof  and  of  perpetnating  the  cvidesM 
of  ench  appl  catiocs,  qualifications,  ezaniinatioo%  probatiooa,  aiid  their  resnlfc  sa  tbsy 
ahall  think  expedient.  8och  rales  shall  be  ap  framed  as  to  keep  the  braooliet  of  the 
civil  service  and  the  different  grades  of  each  facaach,  as  also  the  reeorda  applicable  te 
eadi  brarch,  diatinct  and  separate.  The  said  board  shall  divi.ie  the  ooontrj  Into  tcni 
torial  districts  for  the  nnrpoae  of  hotding  emminatione  of  applicants  resideot  tharm 
and  others,  and  riiall  dei>ignate  aome  cen?aniaiit  and  acoeaaaUe  place  in  each  dittnek 
where  ezamioationa  ahall  be  held. 

Foarth— To  f  xamlne  personall j,  or  by  peraooa  by  them  epeoially  designated,  tba 
applicants  for  appointment  inio  the  civil  eecviea  c  f  the  Uniteii  Statee. 

Fifth — To  make  report  of  all  rolea  and  regulatiooe  eetabliahed  by  them,  and  of  a 
anmmary  of  their  proceedioga,  including  an  ahatnct  of  their  exami<iatiooe  Inr  tiie  di^ 
lerent  branchea  of  the  eervice,  annnallv,  to  Coqgreee  at  the  upeoing  of  each  aaarinn. 

8x0.  S.  And  be  it  further  enacted.  That  all  appointmenta  to  the  oavU  eervice  pro- 
Tided  for  in  tbia  act,  ahall  be  made  from  thoae  who  have  paeaed  the  required  enoit- 
nationa  and  probatione,  in  the  foliowhsg  order  and  manner : 

Firat — The  applicanta  who  atand  highest  in  order  of  merit  on  the  list  of  thoss  whs 
have  passed  the  examination  and  probatioD  for  any  particular  branch  a  d  grade  af 
the  dvil  service,  shall  have  the  preeedenee  in  appointment  to  that  branch  and  gradi^ 
and  eo  on  in  the  order  of  precedence,  m  exammatiooe  and  nifrit  during  probatioa  to 
the  minimum  degree  of  merit  fixed  bv  the  board  for  auch  grade. 

Second — WheneTer  any  vacancy  nhall  oeenr  hi  any  grain  o  the  dvQ  oervice  abova 
the  lowest  in  auy  branch,  the  senior  in  the  next  lower  grade  may  be  appointed  ta  AU 
the  same,  or  ane«  examination  for  that  parUenlar  Tacancy  may  be  ordered,  oodar 
the  direction  of  the  department,  of  thoee  m  the  next  lower  grade,  aod  the  pe'aoa 
found  beat  qualified  ahall  be  entiiled  to  the  appomtment  to  fill  aoch  a  vacancy :  Pro- 
vided, 1  hat  no  person  new  in  office  ahall  be  pRNnoted  or  tranaferred  fro  a  a  lower  to 
a  higher  grade,  uoleea  be  ahall  have  paaaed  at  leaat  one  examinatioo  ooder  thia  act 

Third — The  right  of  aeniority  ahall  be  determined  by  the  rank  of  merit  assigned  by 
Ihe  board  upon  the  examinations,  having  resard  also  to  seniority  in  eerrice ;  but  it 
shall  at  all  times  be  in  the  power  of  the  heada  of  departments  to  order  new  e«amiaa* 
tiona,  which  ahall  be  c  nducteJ  by  the  board,  npoo  doe  notice,  aud  according  to  fixed 
rulea,  and  which  ahall  determine  aeniority  with  reiirard  to  the  peraona  ordered  to  ba 
examined,  or  in  the  particular  branch  aod  grade  of  the  service  to  which  eoeh  ewai- 
nations  shall  apply. 

Fourth — Said  board  ahall  have  power  to  eafabliah  rules  for  auch  special  examioa- 
tiooa,  and  alao  rulea  by  which  any  peraooa  exhibitiog  partioolar  merit  io  any  bnadi 
of  the  civil  rervice,  may  be  advanced  one  or  more  pointa  in  their  reepoetive  gradta ; 
and  one-fourth  of  the  promotiona  may  ba  made  oo  account  of  merit,  irreepective  of 
seoiority  in  service,  auch  merit  to  be  aaoertafaied  by  epecial  examinatmoa,  or  by 
advancement  for  meritorione  aerricea  and  apoeial  fitooas  for  the  partieolar  branch  oi 
eervice,  according  to  rules  to  be  eetabliahed  aa  afbreaaid. 

8x0.  4.  And  be  it  further  enacted,  That  aaid  board  a  lall  also  hare  power  te  pte* 
aeribe  a  fee.  not  exceeding  five  dollare,  to  ba  paid  by  eaoh  applicant  for  eximiaatiaa, 
•nd  alao  a  fee,  not  exceeding  ten  dollare,  to  be  paid  by  each  peraoo,  who  ahall  rseaiva 
a  certificate  of  reoommendation  for  appomtment  or  for  promo^ou,  or  of  Beoiort^,«bidi 


feee  ahall  be  firat  paid  to  the  collector  of  internal  lOTenue  in  the  dietriet  where  tfae 
applicant  or  officer  reeidee,  or  may  be  examined,  to  be  aooonnted  for  and  paid  iaia 
the  Treasury  of  the  United  Statee  by  sooh  ooUeetoiv  and  the  oertificatea  of  payaaat 
of  fe#a  to  coUectora  thall  be  forwarded  qoarterly  by  the  commisBiooers  to  theXkea* 
sory  Department. 

8x0.  6.  And  be  it  further  enacted,  That  nid  hoard  shall  have  power  to  pfeaflribe. 
by  general  rulea,  what  miaconductor  ioeffioieney  shall  be  euffieieot  for  the  mmeval  or 
snapenaion  of  all  officera  who  come  within  the  proTiaioaa  of  this  act,  and  alao  to  cstah- 
lish  rulee  for  the  manner  of  preferring  chargea  for  eoeh  miaeoodnct  or  ineflSeieacy,  and 
for  the  trial  of  the  aoeosed,  and  for  detenniBiof  hia  poaitioD,  peodiog  emh  trial 


1609]  OITIL  SXBTIOB— TBI  YIBW8  OV  MR*  JIH0XI8.  86? 

Kidb  oember  of  sdd  bowd  ih^U  lttv«  the  powar  of  adnuQiiteriasr  oalha  in  a11  pro- 
ceedioi^  antboriaed  bf  this  acti  aod  testimoDj  may  be  givaa  orally  by  witoetaea  ia 
lay  bearing  belbra  aaid  board  or  aay  oaember  thereof,  or  by  lepoaitioo  to  be  takeo 
ia  ibe  ni«fioer  preaeribed  by  law,  or  npoo  ancb  ootiea  and  io  aueb  manoer  aa  aaid 
board  »ball,  by  getieral  role  or  apedal  order,  direct. 

810  4.  And  bo  ti  fiinber  eoaeted.  That  any  one  of  aaid  eomminiooera  may  eoodael 
or  iDperinteod  any  ezamioatioDa,  and  tbe  board  m  ty  call  to  tbeir  assistance  io  snch 
ezamiastiHM  ancb  m^nof  learning  and  higb  character  as  tbey  may  think  fit,  or  in 
their  <  i^cretioo,  ancb  officers  in  tbe  dvil,  military,  or  oaTal  service  of  tbe  United 
States,  as  may  be  d  aignated  frim  tims  to  time»  on  application  of  tbe  board,  as  asaist' 
lot  U  said  board,  by  tbe  Pnsident  or  heads  of  depaitmeota,  and  in  special  c>*ses,  to 
he  fixed  by  mlaa  cr  by  re^utions  of  the  board,  they  may  delegate  ezaminatiuna  to 
iQch  pt-rsun*,  to  be  attended  and  presided  over  by  one  member  of  aaid  boar  J,  or  by 
some  werson  apecially  deatgnated  to  pr<«ide. 

81a  7.  And  be  it  further  enacted,  Thai  the  said  board  may  aleo,  npon  reasonable 
notice  to  the  peraon  accused,  bear  and  determine  any  case  of  alleged  misconduct  or 
inefficiency,  under  the  general  rules  herein  provided  for,  and  in  aocb  caae  shall  report 
to  the  bead  of  the  proper  department  their  finding  in  the  matter,  and  may  recommend 
tbe  BQtpension  or  aismisaal  from  office  of  any  person  found  guilty  of  such  misconduct 
or  isefficieocy  ;  nod  snob  peraon  »hall  be  forwith  suspended  or  dismissed  by  the  head 
of  mch  departmeDt,  pareuant  to  aueh  reeommendatioo,  and  from  the  filing  of  each 
report  skail  reeeire  no  compenaation  for  official  aerrice,  except  from  and* after  the 
erpintiiio  cf  anr  term  of  suspension  recommended  by  such  report. 

81&  8.  And  be  it  further  enacted.  That  the  Preeident  ahall  have  power  at  any  time 
tn  retoke  and  caooel  the  commission  of  any  officer  appointed  in  parauance  of  tbe  pro- 
linoosofthia  act;  ProYided,  howe?er.  That  said  revocation  and  cancellation  iball 
Qot  take  effiet,  if  aaid  officer  demand  a  trial  upon  chargea  to  be  preferred  against 
him,  in  the  manoer  prescribed  in  this  act^  withm  thirty  days  from  the  time  of  being 
Krved  with  notiee  of  aoch  reTocatioD  and  cancellation,  ooleas  he  shall  be  found  guiHy 
Qpoo  his  trial  ci  the  miM»odoet  or  ioefflcieiicy  allege  J  against  him  in  such  chargea  ^ 
Tbs  diacontinnance  of  an  c/ffice  shall  discharge  the  peraon  holding  it  from  the  semce.* 
Sie.  9.  And  be  It  further  enacted.  That  the  salary  of  each  of  said  commiiaioners 
ibsll  be  |A,000  ft  year^  and  the  aaid  board  may  appoint  a  clerk  at  a  salary  of  $2,600 
>  jetr,  and  a  meesenger  at  a  salary  of  $900  a  year ;  and  iheec  aoms,  and  the  necea- 
■vy  traveling  ezpeoaee  of  the  oommlarioncrt,  derk,  and  m-  ssenger,  to  be  accounted 
fot  m  detail  and  Torified  by  affidavit,  shall  be  paid  from  any  money  in  the  Tieaanry 
Dot  otherwiae  appropriated.  The  neoesaaiy  ezpeoaea  of  aoj  person  employed  by 
■id  eomouasioiien  aa  aaaiatanta,  to  be  aoooonted  for  and  verified  in  like  manner,  and 
tHtifisd  liy  the  board,  ahall  %lao  be  paid  in  like  manner. 

8ia  10.  And  be  it  further  enacted,  That  any  officer  io  the  civil  service  of  the 
Ubiud  States  at  the  date  of  the  paaaage  of  this  act,  othor  than  those  excepted  io  the 
fint  tsetioQ  of  thb  act,  may  be  required  by  the  head  of  the  department  in  which  he 
t^resk  to  appear  before  said  board,  and  if  found  not  qualified  tor  the  place  be  oocn- 
picBi  he  ■hau  be  reported  for  dismissal,  and  be  diamisa^d  in  the  manoer  hereinbefore 
ptorided,  and  tlm  vacancy  shall  be  filled  in  manner  af  jreaatd,  from  tboee  who  may  be 
faond  qualified  te  auoh  grade  of  offioe  ailer  such  examination  and  probation,  aa  ia 
Wrdnbelore  preacribdd. 

Sao.  11.  And  be  it  further  enacted.  Hut  any  person  appointed  and  commiasioned 
iBponoaaea  of  the  proviaiona  of  thia  act,  may  be  reonired  to  aerve  in  the  branch  and 
pus  to  wUdi  he  may  be  appointed  in  any  part  of  the  United  Statea,  where  the 
>*>d  of  the  department  in  which  he  servea  may  think  proper,  and  in  case  of  removal 
^  one  pUeeof  aervice  to  another,  tbe  necea^ary  traveling  expensea  of  anch  officer, 
^  be  iseertained  and  allowed  according  to  fixed  mles^  ahall  be  paid  oot  of  the  Treia- 

»n:U.  And  be  it  farther  enaoted.  That  aU  citiaena  of  the  UnitedBtatea  ahall  be 
*I%ib]e  to  examination  and  appointment  under  the  provisions  of  this  act»  and  the 
^^  of  the  aaveral  departmenta  mav,  in  their  discretion,  oesignate  the  offioea  in  tbe 
**v«il  hnnflhea  of  the  dvil  aervioey  the  dntiea  of  which  may  be  oeribrmed  by  ftnudee 
M  wdl  as  nialia»  and  for  all  aocb  officeo  femalea  aa  well  aa  malea  ahall  be  eligible* 
tediu^  make  npliwtion  therefor  and  be  examined,  recommended,  appointed,  tried, 
'll'lwsd,  and  dnauased,  in  aaannar  aforesaid  ;  andthenamea  of  thoae  refemiaended 
brtha  camkHn  ihaU  be  placed  opoo  the  liau  for  appoiotmenl  aiid  pcnmotioii  ha 


B66  TAznio  or  bobbowbd  oavitau  [JUjh 

ihB  order  of  their  merit  end  aeoioritf ,  aod  witboat  diatinetioD,  other  ttiiii  as  ifeg— M, 
from  tbi«e  of  male  appUcenit  or  offioen. 

6x0.  18.  And  be  it  farther  eoeeted.  That  the  PreaideBf,  an<l  alee  the  Senate,  nay 
rcqaire  any  pereoo  applying  ibr  or  reeommended  Ibr  any  cAee  which  requiref  ene- 
firmatioD  by  the  (Semite,  to  appear  before  eaid  board  and  be  examtoe  1  aa  to  h«  qrat 
ificatione,  either  before  or  after  befaig  eommieeione'1 ;  and  the  reaall  of  eoeh  eK>aiea» 
tioo  ehali  be  reported  to  the  Preeideot  aod  to  the  Seoate. 


<«M^^>«»«»»<»^W»»^^^»M»^<^^«^^«MM^^ 


COIUSSIONER  DELillO'8  DECISION   UPOH   THE   TAIDIfl  OF  BOEUWD 

CAPITAL. 

Od  the  80tb  ultimo,  the  Solicitor  of  Internal  ReTeouedeliTttred  an  opia* 
ion  on  the  appeal  of  one  of  our  leading  Wall  street  firms  against  the 
taxing  of  the  borrowed  money  employed  in  their  business  as  broken; 
and  upon  the  strength  of  the  Solicitor's  conclusfony  Mr.  D.tlano  oonfirms 
the  assessment  of  Assessor  Webster,  against  which  the  appeal  is  made. 

This  decision  affords  a  new  illustration  of  the  pronenessof  revenue  offi- 
cials to  interpret  all  doubtful  cases  of  claim  arising  under  the  law,  ia 
favor  of  the  €k)vernmentand  against  the  people*  This  policy  is  impolitic 
and  mischievous.  It  encourages  the  idea  that  the  Government  ia  hostile 
to  the  people,  and  not  their  creature  and  protector.  Congress  passes  the 
law  :  if  it  is  not  clear  in  its  application  to  any  particular  class  or  case,  the 
oflScial  should  refer  it  back  for  Congress  to  determine  its  intention,  and 
make  it  clear  if  it  desires.  And  when  power  is  given  to  a  Government 
officer  to  decide  a  question  in  dispute,  he  takes  a  very  limited  view  of  his 
duties,  when  he  plays  the  part  of  an  advocate,  and  gives  the  GK>vemmait  the 
benefit  of  the  doubt  The  true  principle  was  well  laid  down  by  Fred- 
erick the  Great  of  Prussia,  in  giving  instructions  to  his  judges  upon  thttt 
appointment.  **If  a  suit  ariseSy**  (he  was  accustomed  to  say)  ^'between  me 
and  one  of  my  subjects,  and  the  case  is  a  doubtful  one,  you  should 
always  decide  against  me."  In  the  interpretation  of  statutea,  this  is  the 
rule  which  invariably  prevails  in  our  courts,  and  especially  where  the 
statute  is  penal,  or  in  the  nature  of  a  fine  or  tax.  On  the  contrary,  how- 
ever, our  revenue  officials  appear  to  act  as  if  the  bintest  show  of  autbority 
in  the  law  was  sufficient  basis  upon  which  to  found  a  decision  in  fisvor  of 
the  Government  Just  such  indiscreet  zeal  for  the  collection  of  the  utmost 
dollar  of  revenue,  is  what  renders  taxation  odious,  and  creates  dissatiflfao- 
tion  toward  governments.  We  could  desire  no  better  exemplification  of 
this  shortsighted  policy  than  is  afforded  by  Solicitor  Smith's  argument  on 
this  appeal.  He  does  credit  to  himself  by  making  up  the  best  possible  ease 
in  favor  of  an  unsound  decision ;  but  he  does  discredit  to  the  Government 
by  a  conclusion  which,  according  to  our  view,  is  totally  unsupported  by 
law  or  common  sense ;  the  credit  and  the  discredit,  however,  are  due  to 
the  fact  that,  as  an  officer  of  the  Government,  he  acts  as  if  he  thought  it 
his  duty  to  make  a  decision  in  favor  of  his  client 


1B69]  TAxnro  ov  bobrowbd  capital.  369 

The  whole  gist  of  the  dispute  tarns  upon  the  qaestion  what  is  the  mean^ 
in^  of  the  term '^capital,'*  as  used  in  section  110  of  the  act  of  June  30 
1864.  That  section,  after  imposing  a  tax  of  one  twenty-fourth  of  one  per 
cent  per  month  upon  the  deponti  with  any  person,  bank,  association,  com- 
pany, or  corporation  engaged  in  the  business  of  banking,  and  a  tax  of 
onetwelfth  of  one  per  cent  monthly  upon  circulation  issued  by  such  par- 
ties, also  levies  **a  tax  of  one  twenty-fourth  of  one  per  cent  each  mouth,  as 
aforesaid,  upon  the  capital  of  any  bank,  association,  company,  or  corpo- 
ration, and  on  the  capitml  employed  by  any  person  in  the  business  of 
banking,  beyond  the  average  amount  invested  in  United  States  bonds.*^ 
What  then  is  the  scope  of  the  term  capital  as  here  used  f  The  appellants, 
as  we  think  very  correctly,  claim  that  it  means  the  funds  properly  their 
own,  used  as  the  basis  of  their  business,  as  distinguished  from  any  depoited 
or  borrowed  moneys  which  their  capital  proper  may  have  helped  to 
attract  into  their  hands.  These  are  the  Solicitor's  reasons  for  dissenting 
from  this  construction : 

In  the  firrt  plaee^  as  to  the  term  **  capital.**  Ordinarily  this  word  meant  the 
eotiro  stock  employed  in  one's  hasiness.  This  it  n'>t  denied  hy  ooontel  for  appel- 
IiDtf,  but  they  cla  m  that  it  has  a  difftsrent  tigoification  io  this  ttatote —  hat  it  tig- 
nifies  what  a  man  own$  and  otee  in  hit  busiaeat,  what  the  individual  me  ubert  of  a 
fimt  eoDtriboted  of  thehr  own  mooey— **a  permanent  owoerahip  of  that  which 
ooDstitotet  the  fiaaodal  strength  of  the  orgaaication. 

I  earnot  eonenr  10  this  oootlructi  n.  It  teems  ti  me  that  the  term  indadet  all 
the  money  employed  and  nsed  in  the  basinet',  no  matter  from  what  toorce  it  it  de* 
riTtd.  It  it  immaterial  whether  it  is  borrowed  or  it  the  separate  or  joint  proper  y 
€i  the  memoera  of  the  parcnertbip.  It  it  uted  in  the  baainett  and  does  it  contribute 
to  the  profits  or  snppoead  profits  of  the  baainett  t  If  it  does,  then  it  it  capital 
withio  the  meaomg  of  tectioo  110,  and  it  liable  to  taxation.  The  maniibtt  spirit  of 
that  tectioo  is  to  tax  all  the  lonrcet  from  which  profitt  can  arite.  It  1)  the  ate  that 
is  made  of  the  money  and  the  priv  lege  of  ating  it  that  i«  taxed,  rather  than  the  money 
itttlf.  That  private  bankert  are  taxed  upon  capital  and  depotits.  Thete  are  their 
only  tonrcea  of  profit.  Baokt  are  taxed  upon  capital,  depoeita  and  eircalation,  where 
they  have  circulation.    These  are  their  only  toarces  of  profit. 

It  will  be  noticed  that  the  Solicitor  here  absolutely  assumes  his  con« 
struction  to  be  correct,  without  one  citation  from  analogy  or  usage  to  sup- 
port it  He  simply  affirms — he  doos  not  argue — which  is  tantamount  to 
an  acknowledgment  that  his  case  does  not  admit  of  proof.  He  might  be 
very  safely  challenged  to  produce  a  single  instance  from  the  phraseology 
of  the  fiscal  and  banking  laws  of  Congress  in  which  the  term  "  capital  '*  is 
employed  io  the  sense  he  attaches  to  it*  On  the  contrary,  throughout 
thenational  bank  acts,  the  word  is  used  to  represent  the  funds  contributed 
as  the  permanent  basis  of  the  business  of  the  banks.  And  in  section  110 
of  the  act  of  June  30,  1864,  above  cited,  where  the  items  of  banking 
resources  are  separately  classified  and  taxed  as  capital,  deposits  and  circu- 
lation, this  meaning  is  manifestly  intended ;  for  if  the  term  capital  covered 
all  the  means  em[5loyed  in  the  business,  there  could  be  no  motive  for  this 
separation  of  items.    The  Solicitor  says  the  term  **  includes  all  the  money 

4 


S70  BAILWAT  oonouDAnoH.  [Muf^ 

ued  and  empkyed  id  the  buainan,  no  matter  from  what  Booree  it  a 
derived.'*  If  it  is  used  in  the  businpn  and  contributes  to  its  profiti^  thou 
in  his  view,  it  is  capital  within  the  meaning  of  the  law.  This  constnie- 
tioD,  however,  goes  too  far  even  for  the  SoMcitor's  purposes.  For,  aeeoidiog 
to  this  definition,  depot>its  and  the  money  derived  from  circaUoion  are  boilh 
capital ;  and  as  such  should  be  subject  to  taiation  under  theimpost  speofi* 
cally  upon  capital.  Both  deposits  and  circulation,  however,  are  distiiic- 
tivf ly  taied  as  such,  so  that  Solicitor  Smith  must  either  maintaia  that 
these  items  are  to  be  twice  taied,  or  that  the  term  **  capital "  has  not  that 
comprehensive  scope  which  he  attributes  to  it,  but  that  it  has  a  ear- 
lower  and  more  specific  meaning  determinable  by  the  general  usage  of  tbs 
word  as  applied  to  banks  and  bankers.  When  he  so  distorts  the  common 
isage  of  Uie  term  as  to  make  it  represent,  nt.t  what  a  banker  owns  as  his 
persona)  means  and  resources  used  in  business,  but  nhat  he  borrows  from 
day  to  day,  what  he  owes,  he  certainly  is  bound  tr.  give  strong  reasooi  for 
such  a  novel  interpretation  ;  but,  strange  to  say,  his  interpretation  baa  do 
backing  but  the  dictum  of  authority. 

Mr.  Delano's  decision  subjects  banking  reserves  to  repeated  taistioiL 
The  funds  borrowed  by  a  baulKer  from  a  bank  or  other  banker  oonstitaie  > 
portion  of  the  lender's  capital  on  deposits  or  drculation,  and  aa  sack  sr« 
taied  in  his  hands ;  or  passing  into  the  hands  of  the  borrower  they  sre, 
under  this  ruling,  subjt*cted  to  a  second  tax ;  and  if  the  borrower  shoald 
see  fit  to  again  lend  Uiem,  can  to  yet  a  third  tax,  and  so  on ;  the  Com- 
missioner feel  justified  in  assuming,  upon  a  Tory  doubtful  point  of  iotsr. 
pretation,  that  the  law  contemplated  such  an  oppressive  injustice  f  It 
would  have  shown  a  much  more  seemly  regard  for  a  great  finmndal  istn- 
est  had  he  given  the  tax  payers  the  benefit  of  such  a  strong  balance  of 
probability  in  their  favor,  and  requested  from  Congress^  hereafUr,  a  dearer 
definition  of  the  purpose  of  the  law. 

It  is  unnecessary,  however,  to  discuss  the  questions  arising  under  tbis 
decision,  for  they  will  aoon  be  brought  before  the  courts;  we  only  deiire 
briefly  to  call  attention  to  the  bad  policy  the  Oovemment  is  pursuing  is 
making  illiberal  dedsions  under  the  tax  laws,  with  the  hope  that  wiser 
councils  mxy  hereafter  prevail. 


^^^^patfVtfkMkMVtfV^^^^M^I^MW^^WMaVtf^Atfhtf^paaM* 


lAlLWil  COHSOmUTIOll. 


A  bill  is  now  pending  in  the  State  Legislature  which  we  think  calco- 
lated  to  have  a  very  important  influence  upon  our  transportation  interests. 
The  introduction  of  this  measure  has  been  apparently  conductad  with 
secresy,  for  little  has  been  publicly  known  of  its  details  beyond  that  it 
provides  for  the  consolidation  of  oanneoting  roads,  but  excepts  from  that 


1869]  aAa.WAT  oonsoudatxow.  871 

priTiJege  competing  or  parallel  lines.  The  bill  is  generally  understood 
to  bsre  been  introdaoed  in  the  interest  of  the  parties  contiolling,  at  the 
isme  timei  the  New  York  Central,  Hudson  Ri?er,  and  Harlem  Companies. 

It  is  veil  understood,  amoog  oapitalists  interested  in  our  large  State 
itMdS|that  a  great  scheme  of  consolidation  has  been  definitely  deter* 
mined  upon  by  the  parties  controlling  the  Central,  Hudson  River,  and 
Hsrlem  properties,  the  details  of  which  have  been  settled  and  consent 
to  whio^  has  been  given  by  the  principal  partiea  interested  in  the  seyeral 
companies  concerned.  The  amalgamation  is  to  comprise  the  Harlem, 
or  the  Hudson  River,  the  New  York  Central,  the  Buffalo  and  Erie  and 
the  Lake  Shore  Roads,  the  latter  now  embracing  the  Michigan  Southern* 
The  proposed  combination  inclndes  about  1,600  miles  of  road,  with  a  total 
capital  of  about  tl60,000,000.  This  then  is  the  scheme  for  which 
sathorixation  ia  now  being  bargained  at  Albany,  and  which  we  expect 
each  morning  to  learn  has  been  passed  with  a  few  hours  consideration, 
the  press  having  had  no  opportunity  to  discuss  it,  and  the  people  no 
chance  to  confer  with  their  representatiyes  upon  a  matter  of  such  vital 
ooDseqaence. 

Indeed,  it  would  appear,  from  the  manner  in  which  this  and  other  im** 
portant  projects  are  handled  at  Albany,  that  the  business  of  our  legis» 
Istora  is  not  to  discuss  the  mejrits  of  measures  or  their  bearing  upon  the 
pablie  good,  but  rather  to  determine  the  consideration  for  which  their 
seoeptance  of  the  scheme  shall  be  accorded.  To  this  project  we  think 
there  is  a  very  dedded  objection  in  that  its  adoption  will  establish  an 
OTerpoweriag  transportation  monopoly.  It  is  true,  the  bill  forbids  the 
coDsolidation  of  competing  lines,  and  so  far  has  the  appearance  of  a 
purpose  to  avoid  the  odium  of  abolishing  healthy  competition.  But  of 
what  avail  will  this  exclusion  be,  provided  the  parallel  or  competing 
liDea  should  be  virtually  under  the  control  of  the  parties  who  run  the 
combination  t  If  Harlem,  for  instance,  should  be  left  out  of  the  cob« 
lolidation  will  any  one  suppose  that,  owned  as  it  is,  it  will  be  in  any 
•eoae  in  competition  with  Uie  amalgamated  companies  f  Or  is  it  to  be 
deemed  an  impossible  thing,  or  even  an  improbable  one,  that  Erie  may  be 
eoTertly  controlled  in  the  interest  of  the  same  wealthy  combination  f  Or, 
were  neither  of  these  oases  supposable,  is  it  probable  that  the  Legislature 
would  be  able  to  resist  the  inducements  which  so  powerful  a  corpo- 
ration could  bold  out!  Would  it  not  rather  so  shape  its  legislation  as  to 
mitits  interests  as  against  competing  roads!  The  time  is  coming  when 
New  York  most  have  other  and  enlarged  lines  of  transportation  provided. 
Not  Yetj  many  years  hence  we  may  see  the  trade  of  this  port  doubled ; 
And,  in  that  event,  we  should  need  double  our  present  carrying  faoili. 
^   Is  there  no  danger  of  the  growth  of  such  facilities  being  cheeked 


873  EA2LWAT  OOV80ItDAnOV»  [Jfoyi 

and  Blunted  by  the  corrupt  power  of  an  overshadowing  monopoly  t  New 
roads  to  be  sure  might  be  constracted  under  the  general  nulroad  law,  hot 
the  consent  of  this  monster  corporation  would  ha?e  to  be  obtained ;  or 
the  roads  would  be  projected  upon  such  conditions  as  to  make  th^'r 
iraccess  very  doubtful  and  difficult.  Really,  therefore,  while  the  bill  has 
the  appearance  of  aiming  to  admit  competition,  is  there  no  fear  of  its 
establishing  a  power  which  will  control  and  defy  compeUtion  t  And  if 
such  is  its  tendency,  can  the  ?ast  mercantile  interest  of  this  dty  and  of  the 
West  look  upon  such  a  scheme  with  complacency  t 

The  cost  of  transporting  Western  products  to  New  York  has  become 
a  serious  element  in  the  question  of  our  ability  to  compete  in  the  food 
markets  of  Europe,  and  to  feed  our  own  seaboard  population  cheaply 
enough  to  place  our  manufactures  upon  a  fiivorable  basis  for  competiDg 
with  those  of  other  countries.  Upon  our  whole  line  of  railroad,  from  the 
Hudson  to  the  far  West,  we  need  the  atimulus  to  intention,  expeditioii 
and  economy  which  a  close  competition  alone  can  supply.  Without 
this,  the  trade  of  the  East  and  the  agriculture  of  the  West  must  sufier  a 
constant  repression,  and  the  progress  of  our  national  wealth  must  be 
retarded.  Indeed,  it  is  impossible  to  attach  too  much  importance  to  tbii 
matter  of  economiiing  the  cost  of  carrying.  Just  in  proportion  as  we  can 
reduce  the  prices  of  our  agricultural  products  to  trans-Atlantic  cjnsumeiii 
can  we  command  the  markets  of  the  Old  World ;  and  in  proportioo 
as  we  can  accomplish  that,  shall  we  be  able  to  attract  foreign  capital  and 
foreign  labor  to  our  shores,  and  build  up  our  industry  and  eommeroe. 

What,  then,  is  to  be  said  of  a  acheme  which  aims  at  oontrolHog  ihe 
main  line  of  traosportation  between  New  York  and  Chicago,  and  which, 
by  its  great  power  and  corrupting  hand,  may  be  able  to  control  all  preseat 
or  future  lines  upon  the  same  route  and  to  dictate  the  canal  policy  of  the 
SUtet 

We  cannot  but  think  that  it  is  to  the  advantage  of  the  mercantile  inter- 
est of  this  city,  the  grain  interest  of  Chicago,  and  the  agricultural  interest 
of  the  whole  West  to  prevent  this  project  going  forward.  So  far  as  respects 
our  own  State,  the  bargain  is  probably  so  far  consummated  as  to  render 
remonstrance  useless.  The  consolidation  of  the  roada  of  this  State  is, 
however,  only  a  part  of  the  scheme  which  is  to  place  the  main  roads 
between  New  York  and  Chicago  under  one  monopoly.  It  will  still  remain 
within  the  power  of  the  Legislatures  of  Michigan,  Ohio,  Indiana  and 
Illinois  to  determine  whether  certain  roads  of  their  States  ahall  be  com- 
prised within  this  same  control. 

We  might  also  enlarge  upon  the  corrupting  influence  of  this  proposed 
monopoly  npon  the  politics,  the  government,  the  Legislature,  the  officiiis 
and  the  general  public  morals  of  the  State  ;  but  we  refrain  from  doing  so, 


1869]  LijrS    AND  WATER   OAmBZAOB.  373 

is  onr  denre  was  especially  to  call  the  attention  of  the  commercial 
eammonity  to  the  injurious  results  to  their  interests  which  are  likely  to 
foUow  from  the  creation  of  this  extensive  and  wealthy  corporation. 


UND  AND  WATER  CARRIAGE. 

There  are  those  who  believe  that  railroads  will  soon  put  an  end  to 
loland  transportation  by  water.  The  growth  of  the  railroad  system  in  this 
country  has  been  marvelous,  and  has  had  a  great  influence  in  the  reduc- 
tion of  charges  for  the  movement  of  products.  But  so  far,  in  the 
Deighborhood  of  ail  long  water  routes,  railroads  have  acted  as  feeders  to 
them,  aod  have  concentrated  the  tra£5c  of  large  regions  at  those  central 
points  where  the  iron  road  has  touched  the  lake  or  the  river.  It  has  been 
impossible  for  the  railway  to  do  its  business  as  cheaply  as  it  can  be  done 
by  water.  In  the  very  nature  of  things  the  balance  is  largely  in  favor  of 
the  water  route.  The  difference  in  the  rates  charged  by  either  route 
bas^  however,  been  lessening,  and  it  is  but  a  few  days  since  we  read  in 
a  Chicago  paper,  that  the  demand  for  oars  on  that  particular  day  for 
tbe  carriage  of  grain  ws  in  excess  of  the  supply,  although  the  Lake 
charges  to  Buflfalo  were  but  five  cents  a  bushel.  It  is  claimed  by  the 
sdTocates  of  cheap  railway  transportation,  that  this  state  of  things  will 
be  tbe  rule  before  many  years,  and  that  the  railroad  will  soon  monopolise 
tbebasiness.  At  this  time  wheat  is  brought  by  rail  from  Chicago  to 
New  York  for  30  cents  a  bushel,  which  is  actually  less  than  the  cost  by 
canal,  82^  cents ;  but  of  this  last  sum  20  cents  only  are  freight  and  canal 
tolls.  The  rest  goes  for  storage,  insurance,  commissions,  elevators,  &c* 
The  railroads  have  carried  wheat  in  the  winter  at  even  a  less  charge  than 
SO  cents,  but  then  and  now  the  charge  is  no  evidence  of  the  cost,  and  no 
proof  that  profit  is  made.  In  fact,  the  charge  is  part  of  the  ^  cut-throaf 
competition  of  four  or  five  through  lines,  and  while  profitable  to  the 
grain  producer,  is  ruinous  to  the  companies;  which,  in  the  task  of  dis- 
tributing breadstufis  to  points  on  the  long  routes,  put  their  charges  at 
amply  remunerative  figures. 

It  may  be  interesting  to  compare  the  charges  made  by  these  two 
methods  of  transportation,  in  the  view  of  showing  their  approach  or 
diTergeoce.  The  cost  of  transferring  a  bushel  of  grain  from  the  Mississippi 
river  by  rail  to  Chicago,  a  distance  of  two  hundred  miles,  is  precisely 
the  cost  of  transportation  from  Chicago  to  New  York  by  water,  the  dis- 
tance being  some  fifteen  hundred  miles.  This  is  a  very  wide  difference! 
bot  the  disproportion  is  reduced  when  the  cargo  is  carried  a  greater  dis- 
tance by  ridl,  for  the  cost  of  handling  is  the  same  by  the  land  route 
whether  the  car  moves  one  hundred  or  five  hundred  miles.    And  one  oi 


374  ULin>   AND  WATBB  OAKBIAOS.  [Jfiy, 

the  heaviest  burdens  to  which  grain  is  sobjeeted  is  the  clurge  forhsndlio; 
it  at  the  sereral  places  of  shipnoent.  A  bushel  of  com  is  carried  from 
Chicago  via  Oswego  for  171  cents,  or  saj  18  cents  indading  the  looal 
charge  at  Oswego.  The  railway  freight  for  a  barrel  of  flonr,  which  weigb 
nearly  as  much  as  four  bushels  of  corn,  is  58  cents  from  Oswego 'to 
New  York,  or  50  cents  to  Albany.  The  cost  of  transporting  the  same 
weight  of  corn  from  Oswego  to  New  York  is  82  cents  by  water.  From 
St  Louis  to  New  Orleans  the  freight  in  flour  is  40  cents,  for  a  diitenes 
of  twelve  hundred  miles,  a  charge  that  must  be  reduoed  if  the  Mi»* 
sieeippi  is  to  be  a  rival  of  the  Great  Northern  Water  Konts  from 
Obi'^ago. 

When  we  consider  the  enormous  extent  of  the  transportation  bafiisoi 
that  reaches  New  York  from  the  interior,  it  is  diffloalt  to  realise  how  and 
where  the  same  business  oonid  be  done  if  it  was  transacted  on  lind* 
Every  barge  and  every  canal  boat  are  floating  storehouses.  Tfaej  cto 
move  at  will  about  the  harbor  and  transfer  their  cargo  to  a  ship  in  thi 
Eaat  or  North  river,  or  at  a  Jersey  dock,  or  lying  moored  in  the  stresm* 
They  are  limited  to  no  yard  or  to  no  particular  pier.  The  freight  trui 
is,  however,  tied  down  to  an  iron  track.  It  moves  from  one  plsoe  to 
another  only  with  difficulty  and  at  great  expenditure  of  labor  and  tims* 
The  full  train  bkis  but  little  greater  capacity  than  that  of  a  single  gsbsI 
boat.  Twenty  cars  that  carry  10,000  bushels  are  almost  matched  by  t]» 
single  boat  which  conveys  8,000.  Trains  must  be  limited  in  freqisn? 
and  cannot  be  allowed  to  run  too  closely  to  eaeh  other.  Delays,  nioor 
accidents  the  heating  of  a  journal,  track  repairing,  would  interfere  witii 
that  frequent  succession  of  trains  which  would  be  necessary  to  transpoit 
the  enormous  tonnage  offering,  and  they  would  be  very  sure  to  bring  on 
inextricable  confusion. 

But  commerce  will  seek  the  cheapest  route,  and  whateTer  tends  ts 
remove  burthens  and  lessen  charges  offers  the  strongest  inducement  to 
which  commerce  will  respond.  Slow  freight  trains  can  carry  grain  and 
flour  cheaper  than  last  trains.  Charges  for  handting  must  be  redooed. 
Expenses  on  the  water  routes  must  be  cut  down,  and  the  products  of  tlM 
Great  West  must  be  distributed  through  the  Bast  at  a  cheaper  rate  thin 
now.  The  competition  of  rival  routes  does  this  efieetnally,  as  the  preseot 
charges  from  Chicago  to  New  Yoik,  above  quoted,  show.  CcmpetitioB 
is  more  e£foctive  than  any  labored  argument  that  can  be  made  based  upon 
any  array  of  statistios,  however  imposing. 

One  error  committed  by  the  advocates  of  new  routes  from  the  West  to 
the  seaboard  is  in  supposing  that  the  bulk  of  the  breadstofis  Uron  tbf 
West  go  to  European  and  other  foreigc  ports.  Henoe  the  great  desire  to 
reach  the  sea,  whether  by  the  St.  Lawrenoe  or  the  Iffissiasippi.f  The  trsds 


18(MJ  THX  mrivoiAL  fUTninoir.  S?ft 

with  Earop«  really  absorbs  but  a  small  fractioo  of  the  immense  product  of 
the  Western  grain  fields.  The  West  Indies  and  South  America  require 
large  quantities.  But  the  greater  part  is  consumed  at  home,  and  is 
distributed  all  over  the  seaboard  States,  in  the  large  cities,  in  the  manu* 
factariug  (owns,  and  indeed  in  the  smallest  villages.  For  this  distribution 
there  is  need  of  the  railroad,  and  very  quietly  but  regularly  it  does  this 
work,  conveying  to  all  the  multitudinous  stations  and  depots  the  products 
which  have  found  their  way  to  the  seaboard  and  to  the  centres  from 
wlticb  distribution  is  made«  In  this  distribution,  as  we  remarked  abovet 
the  railroad  which  has  transported  breadstuffs  over  loog  distances  at 
losing  rates  now  compensates  itself  by  the  amplest  tarifif  that  its  roanagera 
bftve  the  face  to  impose,  and  they  give  abundant  proof  that  carriage  by 
water  is  cheaper  than  by  Innd. 


»0^^t0t0^0^0^m 


THE  FffliNCIiL  tlTUAnOir. 

The  suspense  and  uncertainty  aa  to  the  Treasury  policy  produced  a 
short  time  ago  a  good  deal  of  uneasiness  in  financial  circles,  the  depressing 
effects  of  which  were  difiased  throughout  the  mercantile  and  industrial 
movements  of  the  country.  Now  that  Mr.  Boutwell  has  told  us  what  he 
means  to  do,  it  is  only  fair  to  look  for  a  general  responsive  reaction  in 
bufioets.  And  this  is  especially  to  be  anticipat ad,  inasmuch  as  the  policy 
>^hich  be  has  marked  out  for  himself  is  generally  approved  as  sound,  con- 
servative and  safe. 

The  chief  point  to  which  apprehension  was  directed,  was  the  money 
market.  The  Arequent  spasms  and  severe  pressure  which  have  distin- 
gQished  the  experience  of  the  past  six  months,  and  have  marked  it  out 
as  the  roost  troubled  semi-annual  period  known  in  the  New  York  money 
market  for  very  many  years,  has  so  disturbed  the  financial  machinery  and 
ciemoralised  financial  confidence,  that  the  reaction  may  be  slow.  Still  as 
there  is  now  good  reason  for  anticipating  monetary  ease  for  some  months 
to  come,  the  usual  results  of  business  activity  and  speculative  excitement 
lire  pretty  sure  to  develop  themselves  before  long. 

Id  contemplating  the  late  perturb  tions  in  monetary  afiairs,  it  i«  impos- 
^•ble  to  resist  the  conviction  that  we  are  in  a  state  of  tranaitioo  to  some  new 
CoAodal  conditions  which  may  greatly  modify  -  the  future  movements  of 
commerce  and  trade.  In  all  our  large  cities,  and  in  this  more  than  any 
where  else,  men  of  experience  tell  us  that  business  is  changing.  Capital 
moves  io  larger  masses  than  formerly,  and  for  the  time  being  the  concen- 
tration of  the  moneyed  power  seems  to  be  working  to  the  impoverishment 
of  the  many  and  the  gain  of  the  few.  A  year  or  two  ago  the  banks  of 
this  city  would  have  considered  it  a  violation  of  good  faith  towards  their 
dealers  to  attempt  to  charge  more  than  7  per  cent, — the  legal  rate  of 


S76  TBB  miAvciAL  snvATios.  [Jloy, 

interest — for  any  accommodation  wbich  it  was  possible  for  tlie  bank  to 
render.  Now  there  Hre  but  very  few  banks  in  New  York  wboae  books  do 
not  show  transactions  during  March  and  April  at  usurions  rates.  Such  ii 
the  change  in  public  opinion,  that  there  is  no  attempt  at  oonoealmenL  The 
charging  high  rates  of  interest  began  with  the  private  bankeia;  tbenoDeor 
two  national  banks  adopted  it,  and  now  all  have,  more  or  less,  fallen  into 
the  practice.  Tbis,  however,  is  but  one  of  the  numerona  symptoms  of  the 
ooncentration  of  capital  in  a  few  hands. 

The  transition  state  through  which  our  finances  are  passing  may  be 
further  illustrated  by  the  absorption  of  our  floating  capital  into  fixed  forms. 
How  far  thb  process  has  gone,  what  prodigious  amounts  of  money  hsre 
been  invested  in  the  South,  in  the  West,  and  indeed  in  every  seetioo  of 
the  country,  we  may  form  some  idea  by  noting  the  vast  numbers  of  nev 
buildings  which  are  rising  up  in  every  town,  city,  and  village  where  there 
is  any  industrial  enterprise,  commercial  activity  or  agricultural  progress. 
Our  railroads  are  being  extended  and  are  doing  for  the  most  part  a  profit- 
able business.  The  great  trunk  lines  of  the  South  are  all  resusdlating 
and  several  new  pathways  of  commerce  are  being  projected  to  connect  the 
Atlantic  with  the  Pacific. 

Now  all  these  improvements  cost  money.  They  absorb  large  amounts 
from  the  reservoir  of  floating  capital  and  fix  it  in  permanent  forms,  so  that 
to  render  it  inaccessible  as  loanaable  funds  for  borrowers.  We  thus  have 
a  severe  depletion  of  the  streams  of  loanable  moneyi  and  at  the  same  time 
there  is  an  impulse  given  to  the  demand  for  loans.  Such  a  state  of  things 
can  scarcely  fail  to  produce  monetary  spasms  and  except  the  bank  machi- 
nery is  extremely  elastic,  commercial  convulsions  are  not  unlikely  to 
occur.  It  is  one  of  the  greatest  triumphs  of  our  national  banking  system 
that  it  has  sustained  during  the  past  four  or  five  years,  such  severe  stnio 
and  pressure  as  have  been  imposed  upon  it  by  the  negotiation  of  the  sto- 
pendous  aggregates.of  government  loans.  But  that  system  will  win  a  still 
more  signal  triumph  if  it  carries  us  through  the  present  financial  troubles 
and  through  those  of  the  near  future,  without  any  more  severe  spasms  than 
those  which  we  have  already  experienced.  During  the  nex;  five  or  six 
months  there  will  be  little  danger,  as  the  accumulation  of  capital  and  cur- 
rency in  this  metropolis  and  in  the  other  great  financial  centers  will  be  sock 
as  to  render  the  maintaining  of  monetary  equilibrium  an  easy  task.  With 
the  opening  of  the  Fall  trade,  however,  in  October  and  November,  renewed 
pressure  is  likely  to  be  developed,  the  preparation  for  which  may  well 
engage  the  anxious  solicitude  of  our  financial  men.  So  long  as  the  national 
banks  do  not  redeem  their  notes  in  New  York,  the  only  elastimty  wbich 
our  currency  possesses  to  enable  it  to  meet  these  recurring  strains  sod 
spasms  is  imp<»rted  by  the  movements  of  the  Treasury.  By  what  defies 
Mr.  Boutwell  will  meet  the  emergency  remuns  to  be  seen. 


1869]  WATBRIHO  RAIL&OAD  BTOCK0.  87% 

WATERING  SAIIROAD  STOGIS. 

The  dilDtiDg  procen  wbich  comioeoced  with  the  currency  appears  to 
be  destined  to  find  its  way  into  everything  financial.  For  the  last  two 
jears  it  has  had  unrestricted  sweep  in  the  management  of  railroad  cor- 
porations. Most  of  the  leading  roads  have  been  subjected  to  a  material 
iocrease  of  their  capital,  and,  on  some  the  ^  watering"  process  has  been 
repeatAd.  We  have  just  witnessed  a  virtual  increase  of  80  per  cent  on 
Nev  Tork  Central ;  it  is  proposed  to  make  a  fresh  addition  of  60  per  cent 
on  Hadson  River,  and  a  similar  increase  is  talked  of  on  Harlem ;  Fort 
Wajoe  is  promised  a  stock  dividend  of  60  or  65  per  cent;  Bock 
Island,  it  is  said,  is  to  have  its  stock  well  nigh  doubled ;  an  increase 
of  10  per  cent  on  the  consolidated  Xiake  Shore  Company  is  talked  of  aa 
certain;  the  Pennsylvania,  after  an  increase  of  $7,000,000,  makes 
promise  of  yet  another  stock  bonus ;  on  the  £ast  Pennsylvania  a  stock 
dirideod  of  100  per  cent  is  contemplated;  the  Macon  and  Western  has 
mcreased  its  stock  one  third ;  and  New  York  and  New  Haven,  after  a  late 
addition  of  60  per  cent  to  its  share  capital,  proposes  to  make  a  further 
liberal  distribution  of  stock.  For  the  purpose  of  illustrating  what  has 
been  do&e  in  the  way  of  ^  watering^  railroad  stocks,  within  the  last 
two  years,  we  select  28  prominent  roads,  giving,  as  follows,  the  capital 
stock  of  each,  on  the  1st  July,  1867,  and  on  the  1st  May,  1869,  respeo* 
tively : 

Jn1yl,lS87.  May  1,1683.  Increaae. 

Minora  A  ^hio Sl6,lS3,onO  $18,159.00)  $S,000.000 

BoetonALoweU l,8iO,000  $,160,000  880,000 

BMtonAXiine 4,077,000  4,660000  478,000 

C«ntnlorN«irJen^. 18,000,000  16,000,000  S,00 ,000 

Cblcftgo  A  Alton  MH.OOO  7,666,000  1,966,00 

^.icagQ.Bar'ingtoiiAqilixiC7 10,198,000  12,600,000  9,807,000 

Cbkalo  A  NortbWMteni 96,166,000  80.011,000  4.766,000 

C>tcago,BockIMandAPadflc 0,10i),000  14,000,000  4,«iO,0(X> 

gficlnnatU  Hunltum  A  Dayton 8,180,000  8,681,000  891.000 

OlcTtluid  *  Pittobnra fi,891,00O  6,958,(K)0  667,000 

Coan^ctl  at  4  PafBoinpsfe  praf d. l,M4,l'00  1,822,000  808,000 

DoboquASIOBxCltJ..... 3,668,000  4.180.000  468,000 

Jne 86,111,000  W,80l,000  ai,19l,0"0 

HudionBlYer 9,981,000  18,938,000  8,951,000 

Hutford  A  Naw  HftTOB 8,000,<00  8,au0,000  800,000 

OlBoUOeatnl 88,886,000  86,877.000  1,801,010 

IhriatttAClBGlttsati It66rt,000  14,6«),000  l.SM,Q0O 

!p(MgaaOntnl 7,5'iS.OOO  9828.000  1,898,000 

Hkbigan  Sootbara ia600,000  39.186,000  1,685,000 

Vfhrtakea  AbtPaol 10,998,000  16,181,000  4,188,000 

VorHsAIfaaz 8,600,000  4898,000  l,8«l,000 

Ha»bTit  A  Lowan 6  aOOC  790,000  180,000 

S«wYorkC»taL  96JUn,000  61,694.000  9S,C94000 

KcwTorkANewHa^an 8,000,000  9,000,000  8.000,000 

NewProvidnoaABoatoo 1,760,000  9,00u,0(O  846,000 

JeaniTltiBia. 90,000,«'00  97,040,000  7,040,000 

^^d^Ua  ABaadhiff 99.749,000  96,980,000  8,648,000 

Piovi4eiiea*W<naaatar ^ 1,780,OUO  1,900,000  160,000 

Total  oa  98  zoada. t«7.088.000      $100,084,000     $118,048,000 

We  have  here  the  startling  fact  that  28  roads  whose  combined  capital 
in  1867  amounted  to  $287,000,000  have  since  then  increased  their  stock 
to  1400,000,000 ;   showing  an  average  inflation  of  40  per  cent ;  and 


d78  WATBRINO  RAILROAD   BTOOVS.  [^^t 


jet  from  the  proposed  stock  dividends  above  alladed  to  it  would 
that  the  ^  watering "  mania  is  far  from  having  exhanated  itself.  A 
movement  so  sadden  and  so  sweeping  deserves  earnest  eonsidera* 
tion. 

What  then  is  the  meaning  of  ihi(>  railroad  inflatioi  f  what  its  hanif 
-;9hat  its  motive?  and  what  may  be  expected  as  its  result t  Iti^  some- 
what curious  to  trace  the  reasons  succcMiveiy  asi^igned  by  railroad  directon 
for  this  policy.  First  of  all,  it  was  said  that  the  stock  dividends  repre- 
sented earnings  invested  in  construction,  although  it  has  in  few  cassi 
been  found  easy  to  trace  any  correspondence  between  the  increaw  of 
stock  and  the  employment  of  earnings  for  sack  purposes ;  next,  it  wn 
discovered  that  the  land  grants  of  the  roads  had  beeume  more  valaablei 
and  it  was  urged  that  this  improved  value  should  be  represented  in  the 
nominal  capital ;  still  later,  it  has  been  found  that  it  now  costs  modi  mors 
to  build  roadfluthan  formerly,  and  that  the  capital  stock  ought  to  b<>  nisei 
proportionately  ;  and  finally,  it  is  urged  that  the  amount  of  atock  shoaM 
be  regulated  by  the  earnings,  upon  a  basis  allowing  7  per  cent  ioterest  for 
each  4)100  of  atock.  Stockholders  and  speculators  have  not  been  parti- 
colarly  careful  about  scrutinizing  the  reasons  and  motives  of  tkts  pdwj; 
for  its  result  has,  in  all  cases,  been  to  enhance  the  market  value  of  the 
stocks  and  afford  splendid  opportunities  for  profit.  There  are,  howeter, 
not  a  few  thoughtful  capitalists  who  look  upon  the  ^  watering**  mania  with 
grave  apprehension,  as  one  of  the  worst  forms  of  the  prevailing  fioaocisl 
derangement. 

It  is  not  to  be  denied  that  there  may  be  good  reasons  for  inereasiag 
the  share  capital  of  a  railroad  company.  In  case  of  the  building  of  addi* 
tional  road,  laying  additional  rails  not  originally  contemplated,  or  makiog 
other  permanent  construction  improvements — ^it  may  be  deemed  uion 
prudent  to  issue  stock  for  these  purposes,  than  to  take  the  requisite  mesm 
out  of  the  current  earnings ;  or  if,  for  a  succession  of  yeais,  a  nlode^ 
ate  portion  of  the  earnings  has  been  devoted  to  these  objects,  there  ess 
be  no  objection,  upon  principle,  to  distributing  among  the  6tockbold«ffs  iS 
amount  of  stock  corresponding  to  such  investmenta.  The  late  enormosi 
stock  dividends,  however,  have  been  carried  far  beyond  the  limit  allowed 
bj  this  principle.  In  fact,  the  object  of  the  new  issues  would  appear  te 
be  mainly  a  speculative  one,  and  no  justification  has  been  sought  or  carsd 
for  beyond  the  success  of  the  speculation.  It  is,  of  course,  within  the  pro- 
vince of  the  shareholders  to  determine  how  they  shall  have  their  intersit 
in  the  road  valued  or  represented.  It  is,  hoivever,  a  great  mistake  to  sop- 
pose  that  by  increasing  the  nominal  capital  they  in  the  slightest  mesnra 
improve  the  real  value  of  the  property,  or  augment  the  revenue  they  rosy 
derive  from  it    It  may  be  that  upon  the  basis  of  the  present  cost  of  cob. 


1889]  WATSBIHO  RAILROAD  STOCKS.  870 

structioD,  the  roads  are  worth  mach  more  than  their  original  cost ;  an 
argument  wbieh,  jost  now,  is  especially  urged   by  the  advoouee  of  dilu- 
tion.   Bat  is  it  to  be  held  as  a  sound  principle^  that  the  nominal  amount 
of  eoqx>rate  capital  i«  to  be  increased  with  the  progress  of  the  general 
inflation  of  prices  and  of  the  currency  t     It  is  generally  supposed  that  we 
have  already  passed  the  climax  of  high  prices  of  products  and  labor,  and 
ibatthe  cost  of  constructing  roads  may  hereafter  show  a  stead?  decline 
toward  the  old  level.    Are  the  dilationists  prepared  to  follow  the  logic 
of  their  policy,  and  reduce  the  capital  stock  of  the  roads  when  ibe  costs  of 
coDstroction   and   the  value  of  real  estate  have  declined  t    If  not,  they 
uiQftt  be  prc'pared  hereafter  to  witness  a  heavy  decline  in  the  market  valoe 
of  tbeir  shares,  unless  there  is  a  corresponding  increase  of  business,  arising 
from  the  fact  that  the  nominal  capital  exceeds  the  real  value  of  the  roads. 
It  is  again  trae  that  the  late  and  present  earnings  of  many  roads  are 
such  s!»  would  enable  them  to  pay  a  good  dividend  upon  a. much  larger 
amoant  of  capital :   which  fact  also  is  presented  as  an  excuse  for  *'  water- 
rj^y    But  before  concluding  that  this  is  a  sound  reason  for  infl  iting  the 
5to(  k  capital,  it  may  be  well  to  ascertain  the  cause  and  the  probable  per- 
maneooe  of  the  improved   earnings.     In   the  first  place,  the  increased 
cost  of  construction,  within  the  last  six  years,  have  deterred  prudent  cap!" 
Ul»u  from  investing  in  new  railroad  enterprises;  and  carrying  facilities 
Having  thns  been  restricted,  tbe  roads  have  had  perhaps  an  undue  control 
oTer  freighte.     Within  the  last  twelve  months,  however,  new  roads  have 
been  projected  in  every  part  of  the  country ;   and,  as  the  costs  of  build- 
in?  decline,  the  late  prosperity  of  the  roads  will  naturally  induce  a  very 
active  competition   from  new  lines,  materially  lowering  thu  present  high 
scale  of  profits.     The  late  high  prices  of  grain  and  cotton   have  facili- 
tated the  exaction  of  hijrh  rates  of  freight  upon  produce  generally ;   but 
: jst  as  certainly  must  the   now  reduced  values  of  breadstuff*  compel  a 
redaction  in  tbe   charges  for  carrying  Western   produce.    The  earnings 
Wn  for  "  watering  "  is  thus  seen  to  be  a  fluctuating  one ,  and  may  hereaf- 
^f  jnst  as  reasonably  call  for  a  redaction  of  capital  stock  as  it  now  war- 
fttts  an  increase. 

It  is  impossible  to  adduce  any  really  sound  justification  of  the  ••  water- 
^^'f  policy.  It  is,  in  most  oases,  simply  a  deceptive  game  played  by  sps- 
cQ'tUfe  directors,  who,  after  the  inflation  has  been  consummated,  will  be 
tile  first  to  forsake  the  bubble,  snd  quietly  wait  to  profit  from  the  ulti- 
n^  violent  revulsion  in  values ;  while  the  attempt  to  draw  out  of  the 
consumers  of  the  country  high  charges  for  freight,  so  as  to  pay  dividends 
«^n  the  iocreaied  stock,  is  a  direct  check  to  our  material  progress. 


980  OLEVILAITD,  COLtTICBUB,  XIO^  BAILWAT.  [^^t 

CLSTSLlNDi  COiniBUS,  CINCnRiTI  IP  INOUNAfOIU  lillliT. 

This  property  la  a  consolidation  of  the  Cleveland,  Colambos  and  (Sn« 
einnati,  with  the  Bellefontaine  Railway  Company.  The  oonaolidatioa 
was  oonsnmmated  and  took  effect  May  14, 1868,  bat  considering  that  ths 
official  year  is  to  close  December  81,  the  first  annual  report  is  made  to 
cover  the  joint  transactions  of  the  two  oonstitaent  companies  for  the  fall 
year. 

To  this  oonsolidalion  the  Bellfontaine  Company  oontribat*d  (Gram 
Indianapolis  to  Oalion)  202.60  miles,  and  the  Cleveland,  Golombos  and 
Cincinnati  Company  (Clevland  to  Columbus  137.98  and  Springfield  to 
Delaware  49.89)  187.87  miles.  Thus  the  total  length  of  diiBCt  track  it 
390.87  miles,  which  there  are  29.59  miles  of  second  track  and  41JS5  at 
miles  of  sidings.  Equivalent  single  4  feet  10  inches  gauge  track  461.21 
miles,  averaging  56  11^.  per  yard  of  rail. 

The  number  of  locomotive  engines  in  the  consolidation  was  83,  from  ths 
C.  C.  C.  Company  47,  and  from  the  B.  Company  36,  two  of  which  were 
replaced  by  new  engines  dnriog  the  year,  and  eight  others  wore  thorougfalj 
rebuilt.  Steel  tyres  are  being  snbstituted  for  iron  tyres,  and  sofiirss 
brought  into  use,  have  proved  to  be  both  economical  in  general  wear  sod 
their  entire  freedom  from  breakage. 

The  number  of  passenger  train  oars  was,  at  the  close  of  the  fiscal  yesr, 
as  follows :  43  first  class  and  4  second  class  passenger  cars,  10  baggsge,5 
baggage  and  express,  and  7  mail  cars.  Two  baggage  and  express  cm 
were  built  during  the  year.  The  number  of  merchandise  cars  wm  at  dstt 
as  follows :  736  house,  289  live  stock,  319  platform,  and  21  cabootA  csn. 
Of  these  there  were  built  during  the  year  18  house  and  23  live  stock,  sod 
during  the  same  time  13  house,  14  live  stock  and  18  flats  were  oondemsed 
and  broken  up.  The  increased  and  growing  traflk  of  the  road,  howevsr, 
demands  large  additions  to  this  apparently  extravagant  amount  of  equip- 
ments.  The  mileage  service  in  all  branches  for  the  year  is  thus  summsd 
up :  Passenger  trains  run,  768,874  ;  freight  (including  switching),  1,261,« 
755;  repairs  and  graveling,  80,509 ;  and  fuel,  66,767 — total,  2,177,407 
miles.  The  cost  per  train  mile  for  repairs  waa  9.21  cents.  Of  the  total 
number  of  passengers  earned  over  the  road,  via.,  546,377,  the  through 
travel  numbered  76,036,  and  the  travel  from  station  to  station  470,341. 
The  result  waa  a  mileage  of  29,770,918  miles,  earning  $849,283  58,  or 
2.85  cents  per  mile.  The  amount  of  freight  or  merchandise  (net  losd) 
was  628,356^  tons,  and  the  transportation  mileage  95,130,679i  milai 
resulting  in  earnings,  $1,848,129  82,  or  1.94  cents  per  mile. 

The  earnings  and  expenses  accounts  are  given  very  iulL    Fkom  tbefs 
we  make  up  the  following : 


1869]  OLByxULKD,  OOLUMBUS,  XTO.,  RAILWAY.  881 


FlPMOgOB $8l9,f88  rS 

FKl^ht 1,84U»8I 

Exprut* 115,114  t» 

Mali*    6,918  00 

Reott 48,901  67 

Bt^abrineh.  .  e,888  TO 

Ioi«re-tand  dlTldends ll,Mi  89 

M:<celianeoat 16,006  88 

KL-DiogA  UU.A  CoL  *  X  a  K. 

to  .No?  8!)^  1868 8,860  98 

Total ^O^islil 


taanammsEB, 

Openting. $1,976,008  65 

National  and  local  taxes 169,161  M 

Net  'eTenae..!8,171  p.  c. $881,449  01 

Bond  fnterett.. $04,986  18 

Dlyldenda,7  p.c  7S1,S44  60 826,179  63 

EnrpIiiB..     8,S6B40 

Sorbins  on  consolidation: 

C,  C  AO.  RB 166,048  88 

Beilefontaine  Railway 78,868  97 


Barplna  Deo.  81, 1868 $848,608  80 

The  following  is  a  statement  of  the  earnings  and  expenses  of  the  oon- 
soiidation  for  the  last  five  years.  They  are  simply  abstract  accounts,  and 
\m  mnch  of  their  valae  from  oar  inability  to  compare  them  with  mileage 
of  passengers  and  freight  through  the  series  of  years.  The  loss  in  earn- 
ings may  be  attributed  to  a  general  lowering  of  rates. 

P-ic$l  , — 0  C.  AC.  R.  R.— */-B^^efontilneH.R.-^  ^ OonjAlnt ^ 

jear.                           Eamlngs.     Expenses.    Earnings.  Expenses  Earnings.  Expenses. 

'^\ $8,490l48     $l,;t64,186     |1,74^644  $1,161,744  $4,847,tt98  $^85,089 

^^5 8,888,18i       1,650,688       1.676,164  l,lb8,  67  4,0bl,z96  a^788^BTO 

V^ l,93a,7X       1,S64,0:7       1,8«,S80  078,088  8,86»,980  8^:m^060 

><9l 1,894,687       1,848,484       1,487,687  054,920  8,888,474  8,188,854 

^^ 8,964.014  8,188,166 

The  dividends  paid  in  August  and  February  were  at  the  rate  of  7  per 
cent  annually.  The  two  previous  years  gave  to  the  C.  C.  and  C.  R.R.  8 
per  eent;  and  to  the  Beilefontaine  6  per  cent.  The  total  cost  of  the  rail- 
road and  its  equipments  is  $11,936,146  30,  or  $30,605  per  mile.  The 
followiDg  is  the  general  balance  sheet  of  the  company,  as  of  January  1, 
1869: 

Cipital  stock $11,690,000 

L>8betd  by  company 1,169,100  $10,460,900  00 

e.C  a C.B.R.^oiidB  ($86,000  lUling  doe  yearly) 4(X)!ooO  00 

B  &  Indiana  R.  B  1st  nort£^  bonds $791,000 

Ii»Bheld  byoornxMUT 61,000  740,000  00 

u.  A IndaoaR.  K.  fi mortgage  bonds 16,000  00 

B.AIndianaR.  B.  Income  Donds 87,000  00 

tf.  A  Indiana  R.  B.  bonds  past  dne 8,000  Oi 

IcdUupoUa,  Pittsburg:  A  CleTeiand  R.  R.  Ist  mort.  bonds 87)^.100  00 

IccUnADoUs,  Pitto  AT?leYelM  R.  R.  8d  mort.  bonds $847,000  00 

Us»b«(dbyoompaii7 6,000  00  841,000  00 

i>ivi<^eQd  No.  8,  payable  Fob.  1,1860 866,V44  60 

barplusfand 848,608  80 

Per  contra :  the  charges  as  stated : 

rcfitofroadandaq[iilpm«nta $11,986,146  08 

M»texJiUonbaiid , 466,814  19 

-^J    •••• ' 408,040  47 

C4*iiMsets 187,416  08 

Other  aHet»-4S.  AH.  Valley  R.R.  bonds $8.000  00 

"        '*      Realestata 80^60161 

^        **      Woodlands ^ 46,701  04 

"        **      Btoneqvarry 4,916  46 

'*        *•      BUls  receivable..^ 18,646  81 

**      laaiinsoe  scrip 476  00        108,489  48 

fotil. .^ $18,084,846  70 

The  report  of  the  Board  says :  The  results  of  the  consolidation  have  been 
^tUfactory,  each  part  of  the  railway  showing  its  fair  per  centage  of  earn- 
ngs  in  proportion  to  the  capital  represented.  It  is  the  opinion  of  the 
^oard  that  the  mutual  benefits  to  be  derived  from  one  organization 
^twetn  Lake  Erie  and  the  Eastern  railroad  connections  at  Cievelandi 


882  KAILROAD   XABVIHOB.  [H^T, 

and  the  rich  Rgrieuitural  country  traversed  by  the  western  oonnectiou 
in  Indiana,  Illinois  and  west  of  the  Mississippi,  will  increase  yearly.  The 
Company  have  also  aided  in  the  construction  of  the  Indianapolis  and  St 
Louis  R.R.,  and  on  its  completion  it  is  expected  that  that  road  will  be  of 
eftsentiai  advantage  to  the  C.  C.  C.  Js  Ind.  R.  R. 


«^V*»««V*^MM^V^tf4tf««V^«««««fttfMtf^«W 


EilLEOiD  SiRNlIIBS  FOE  APRIL  AND  POK  TIE  FOUE  lONTHS  SSBUS 

APEIL  10. 

By  special  information  obtained  from  several  of  the  Companies  we  s.-8 
enabled  to  compile  our  monthly  statement  of  railroad  earnings  at  an  earlier 
period  than  usual. 

There  is  not  so  uniform  an  increase  in  the  earnings  for  April  «  was 
shown  in  the  previous  month,  but  they  are  still  very  satisfactory^  and  com- 
pare favorably  with  those  for  the  same  month  of  1868.  The  Urg«8t 
increase  is  shown  in  the  earnings  of  the  Illinois  Central,  the  Ohicago,Rock 
Island  and  Pacific,  and  the  Chicago  and  Alton  Roads,  while  the  Pittt-barg, 
Fort  Wayne  and  Chicago,  and  the  Ohio  and  Mississippi  Boads  show  a  cos- 
siderable  decrease.  In  the  case  of  the  latter  the  falling  off  ia  accounted 
for  by  the  trouble  between  the  Erie  Company  and  the  Cincinnati,  HamiltoD 
and  Dayton,  which  stopped  the  passage  of  through  freight  for  a  prtioo 
of  the  month  ;  that  difficulty  having  been  favorably  adjusted,  aresumpUOQ 
of  the  full  earn  logs  may  be  expected. 

The  receipts  of  grain  at  Western  ports,  which  affect  so  greatly  the 
earnings  of  the  principal  Western  roads,  fell  off  largely  with  the  begioniDg 
of  April,  and  for  the  whole  month  were  below  those  of  1868  ;  as  to  the 
future,  the  accounts  differ  widely,  some  parties  declaring  that  there  is  ^U 
a  much  larger  quantity  of  grain  to  be  sent  forward  than  usual  at  this 
season,  others  being  equally  positive  that  very  little  more  grain  will  be 
forwarded.  The  earnings  which  have  been  published  for  the  first  week  io 
May,  show  a  considerable  increase. 

The  earnings  for  April  are  as  follows : 

SAIUBOAD  BAVmSM  VOB  AFBIL. 

18SS.  18S8.  Ine.  D^ 

•Otileago  A  Alton $881,148    |97»,18i      t6a,0K        •- 

Chicago  ft  NortbwMtem l^s^S^S    1«QM,OT  ....      9^ 


•»•• 


tChicMO,RockIsUiid*FSclfle 88lfl01  988,101  74*908 

lUliDoiB  Central  MIS,8S5  618,800  76,«S 

MftrietU  ft  dnolnnatt 109,588  108.481  1,G6S         •- 

Hlehlgan Central 411,ttl4  418,108  ....        W^ 

Michigan  Bontliern 418,544  408,410  91,194 

JUlwHUkee  ft  8t.  Panl 480,987  4a5.e»  94,868      _^ 

Ohio  ft  MlaslBBlppl 914,400  988,149  ....       8T.1« 

PlttBbaig,  Ft.  Wayne  ft  Chicago^ 110,177  11Q,:08  «,4ai 

at.  LoaiB,  AltonftTerreBaiite.... 171,888  J8M88  18,480 

Toledo,  Wabaah  ft  WeBtem 811,888  908,888  19,447        -^ 

WeBtemUnion 41,e89  40J8S  ....       1**^ 

Total $8,806,480  M19,e48  "sKJM      0M8t 

I ' ■!■!■■              .                .  Jl.                        Ill                                       —^^"^ 

•  481  milea  in  1889,  againat  980  In  1886. 

t  Namber  of  ndlea  open  oontinQAny  InetssaliMb  OrsrliOOmUBsaMmwenwQikBdiaApni, 
188fL  than  in  the  aame  month  of  1808^ 
t  Inchidlng  lasirt  lines. 


1869] 


KAItBOAO  nsilfl. 


M9 


For  the  foar  months  from  January  1  to  May  I,  all  the  roads  show  an 
iocresse,  with  the  single  ezoeptlon  of  the  Ohio  and  Mississippi.  In  the 
foilowiDg  table  we  compare  the  earnings  of  the  several  roads  for  the  first 
four  months  of  1869  with  the  some  periol  in  1868 : 

i  FBOa  SAVOAMX  I  TO  XAT  1. 


1880. 

Chicago  A  Att^n $l,«n,886 

Chi  a^o  a  >ortb western 8,940,108 

Ch!c«^o,  Bock  Itiand  a  Ftelte 1,4 'mio? 

lliiDois  Ceo  rtJ S^441A83 

Xir  etu  a  Ctnetnliatl 4itB,WI 

MifhispmC  Btn] 1,608,098 

Micbiganaoauen 1,070,85 

MilwaokeASt    FMl ^  l,tf65,4M 

Ohio  ax  Mi Mlppi 884,814 

Pitta.  Fo't  WajnH  a  CMago S,687,00t» 

St.  Loais.  AltOQ  ATe^re  Biate S(B,689 

Toledi.  WalM'h  A  Westeni 1,918,835 

WMtemUBton ia),r  ~ 


1868. 

$1,097,410 

8,4T?.157 

1.171,188 

S,06S,8M 

8^0,976 
1,890.049 
1,681,690 
1,488,981 

9*11,478 
8,689  380 

608,«7 
1,10),149 

176^647 


Inc. 

if71,915 

462,961 

981,997 

867,673 

99,899 
119.447 
188.816 
177,143 

•  •  •• 

117,664 

67,989 

118,686 

4,799 


Dec 


$199,064 


Total $19,878^974     17,988,751       1,086«667      199.084 


RAIIAOAB  1TEM8. 

PAcmo  RAoaoAB  Orni.— Tbs  kXhwiog  ttatemeni  of  time  sad  distaaoes  is  giveo 
hj  the  WtUm  BmUroud  GmuUt : 

Mflee. 

NnrTorktoClilcsso,m 911 

Chicago  to '  DuhAfMebneka • ^..  491 

Oia%hat«  Brymn 888 

BrymtiOiroen,  Urab 983 

Orien  to  Uko,  N<  Tads.  vlA  Cential  Fidfle  Btilroed .^.  978 

Bko  to  Saormmento,  GUlfornla,  tU  Oential  Padflc  Railrnad 486 

BaauQcnto  to  &a&  yiasciaco,  vis  Weatem  PadtG  Bailioad 117 

Ttttil aiiu        181X 

Tbna  a  total  distance  of  8,908  miles  is  made,  aoeonliog  to  the  present  achednle  ti  ne, 
is  6  daja  and  11%  hoars,  aetoal  iime,  by  a  traveler'e  watch,  from  which  we  deduct  8^ 
Wmri,  dUTereDee  of  time,  when  going  West,  leaving  the  apparent  time  ooneamed  in 
mikiog  the  trip  6  days  and  14  hoon. 

At  K$aD  Frandano  the  mails  will  connect  with  the  Tarioaa  steamahip  tinea  ranofaig 
<»  the  Padfie,  and  may  be  landed  at  Hon  lain  in  nine  daja  from  that  city,  or  16^ 
day  a  friim  New  York.  They  can  roach  Japan  io  19  da^a  from  Sao  Franciaco.  or  26^ 
dtyt  fn  m  New  York,  or  S3  to  84  dayt  from  Great  Britaio— thna  beating  the  Britiah 
naila  aeot  via  8n«s,  three  to  Ibar  weeke.  The  trip  between  Yokohama,  Japan,  and 
cither  Hong  Kong  or  Sfaaoghae,  la  readily  arcompliuied  by  the  Pacifle  Mail  ateamahips 
io  from  fire  to  alz  days,  whidi,  added  to  the  time  in  reaching  Japan,  will  giro  the 
throiigh  time  neceaaary  to  reach  either  of  the  abore  named  porta  of  China.  The  maila 
for  AoatraliaL,  it  it  thought,  will  hereafter  go  via  Sao  Franeiaoo^  aa  the  Auatralian  and 
I^ev  Zealand  Steamship  Company  intend  uanaferring  the  terminna  of  their  line,  which 
hu  been  mnoing  from  Sydney  to  Panama,  ao  aa  hereafter  to  inn  from  Aoatralia  to 
Tsloti,  thence  to  Honolnln,  and  thence  to  San  Franciaco,  making  28  daya  schednle  time, 
vhich  wHl  giro  na  monthly  mail  to  Aoatralia  in  84  or  86  daya  through  time. 

Tei  Guomvan,  Hamilton  aim  Dattoh  aan  thb  Eub  IUilwat  DmnooLnr 
8xfn.K».— The  CHnciimali  OmnmercUU  of  April  29th  haa  the  following : 

*  We  learn,  by  a  prifate  telesram  from  New  York,  that  the  recent  diffioilty  between 
the  Cindmuai,  HamiUoo  and  Daytun  and  the  Erie  Railway  Companies  haa  been 
uucab^y  nettled.  The  detatla  of  the  arrangement  have  not  been  made  pnblic, 
bst  the  main  featare»,  we  understand,  are  about  aa  followa :    The  oontract  ia  for  ten 

C,  and  goes  into  effect  immediately.  The  Erie  ia  to  hare  the  ezcluaive  nae  of  the 
gaoge  indt  for  a  through  business  only;  the  local  traffic,  both  passenger  and 
^ht,iaeaqiresalyraaerTed  to  the  Cincinnati,  Hamilton  and  Dayton;  the  Erie  runs 
its  own  traoMbaod  reeaivea  and  delifera  ita  own  freight,  at  ita  o«n  ezpenae.  For 
^  we  ef  the  track  merely,  induding  neceaaary  depot  SMsilitiea,  the  Qndnnati, 
Aioiltaa  and  Dayton  is  to  reed? e  one  hundred  aad  eighty  thousand  doUais  per 


B84  BAILROAD  nuB.  [Jfajf, 

umam,  in  maotlily  bitftlhoeiitt  of  fifteen  tbootaDd  dollm  eftbh,  pftyftMs  io  adfiBM 
All  damage's  tnd  loMes  to  be  paid  by  the  party  caosini;  the  ■ame. 

**  1  bis  arraogement  would  seem  to  be  adTaotageous  to  bath  roada.  While  the  Erie 
gets  all  that  she  needs,  the  Oinciooati,  Hamilton  and  Dayton  at  the  aame  time  laesifsi 
a  hendsocDe  return  on  a  hitherto  profitless  investmeot. 

**  Besides  the  one  huodre  J.and  eighty  thousand  dollars  from  the  Erie,  the  GDCniesti 
Hamilton  sod  Dayton  now  receives  from  another  company  twenty-five  thooptad  dol- 
htrs  per  annum  for  track  privileges  on  six  miles  of  road  ;  thus  mmkinff  its  incoos 
from  rents  alone,  two  hundred  and  five  thousand  dollar*,  or  very  nearly  6  per  ceot 
on  its  entire  cspital  stock  of  $8,50  ,-  00.  With  such  a  showing,  and  sodb  prospsdi, 
the  stock  of  Che  Cincio'  ati,  Hamilton  and  Dayton  shonld  take  rank  among  the  ssfeit 
and  most  profitable  railwi^  invest  meuts  in  the  United  States.** 

In  this  eonnection  it  is  worthy  of  rema-k  that  the  Ohio  and  Miasiselppi  Rvilned 
loet  a  great  portion  of  i  s  through  freight  while  the  difficulty  lasted,  and  tfaia  Cict 
accounts  for  a  decrease  in  the  April  earnings. 

—A  proposition  hts  been  submitted  to  the  Massachusetts  Le^latora  to  eonsoltdite 
into  one  roa  1  the  Boston  and  Lowell,  Nashua  and  Lowell,  Nashua  and  C  jncord,  Nertb- 
em  Verm  nt  Central  and  Ogdensburg  Railroads,  covering  the  entire  line  beivccn 
Boston  and  Ogbensborg,  N.  T.  It  is  proposed  to  call  it  the  Great  Northern  Railroal. 
The  bill  authoiia«e  the  purchase  of  all  the  above  named  roadsi  and  limits  the  capital 
stock  of  the  new  corporation  to  the  cspital  stock  and  amount  of  iodebtedness  ol  tJis 
several  roads,  with  tne  railroad  and  sttamboat  lines  now  leased  bj  them,  which  tbe 
corporation  is  also  empowered  to  buy,  the  whole  to  be  npoo  terms  to  be  matosBy 
agreed  upon,  and  to  be  ratifie-i  by  a  msjority  of  the  stockholders  cf  each  roa  i  st  a 
meeting  to  be  called  for  the  purpose.  It  is  understo  d  that  all  the  roade  above  mco- 
tioned  sre  io  favor  of  the  consolidation.  A  hearing  upon  the  matter  will  be  given 
at  a  future  day.  <> 

— ^The  Indianapolis  and  Chicago  Air  Line  Railroad,  by  which  the  prasenfc  distance 
by  rail  between  Chicago  and  the  capital  and  principal  city  of  Indiana  will  he  short- 
ened twenty  miles,  is  contemplated.  The  route  was  partially  surveyed  two  yean 
agOL  an  1  it  is  proposed  to  have  it  extend  through  five  different  county  Beats  in  lodiioa 
— Frankfort,  CliniOn  Coubty ;  Delhi,  Carroll  County ;  Montioello,  Pike  Coooty ; 
Rensselaer,  Jasper  Oouiity,  and  Crown  Point,  Lake  County.  Tbe  Countiee  of  Jaspar 
and  Clinton  are  now  wholly  without  railway  facilities,  and  the  construction  of  tbs 
propoeed  line  will  bring  these  important  localities  in  direct  connection  with  Cbioigo. 
The  right  of  way,  from  Indianapolis  to  the  city  kmits  of  Chicago,  haa  already  bees 
procured. 

—Steel  raila,lt  is  reported,  are  to  be  laid  on  the  entire  length  of  the  rmilroad  from 
Paris  to  Marseilles.  The  change  from  iron  to  steel  will  require  187,000  tons  of  steal 
From  experiments  made  by  the  company,  it  has  been  calculated  that  in  the  noBSxj 
of  ^e  stations  iron  rails  will  not  last  over  four  years^  and  on  the  whole  line  not  onr 
eight  or  ten  years. 

—The  Laikyette  OoMttte  says  ;  *  Indiana  will  not  long  be  behmd  her  Meter  Statei 
in  the  amount  and  extent  of  her  railroad  uitereets.  There  are  now  in  moning '  rder, 
within  the  border  of  this  SUte,  2,566  milei  of  first-class  railroad.  The  Tracks,  eogiao, 
shops,  and  all  their  property  complete  was  ^ued,  one  year  ago,  at  |164,t24,0  0. 
The  three  roads  thri  have  the  greatest  number  of  milee  of  track  are  the  Ohio  A  HIm*- 
sippi,  Louisville.  New  Albany  dk  Chicago,  and  the  Indianapolis,  Oindnoati  and  Lsfay- 
ette,  according  to  their  old  plats ;  but  since  the  consolidation  of  the  Indiana  Csetnl, 
Union,  and  Logansport,  and  Chicago  and  Air  Line  into  tlie  Cblnmbos  and  lednaa 
Railway,  the  latter  takes  the  lead  of  all ;  and,  in  a  few  days,  the  track  to  YinceoBsi 
will  be  added  also.  The  o  nstruction  of  th«  new  line  to  connect  witii  tbe  Alloo  sad 
St.  Louis  Road,  is  a  fixed  fact.  The  Pittsburg  and  Fort  Wayne,  and  tbe  Cleveisad, 
Columbus,  Cincinnati  and  Indianapolis  Rail«ray,goarantoe  the  means  for  boildiag  it 
The  route  has  been  surveyed  and  platted,  portions  of  it  have  been  put  nn  ier  cootiset, 
and  all  will  be  in  running  order  bj  next  Fall.  The  building  of  this  road  will  give  two 
competing  parallel  railroad  lines  from  St.  Louis  to  New  York,  via  Pittebmrg,  sad  bath 
nmomg  through  fine  coal  and  iron  beds  between  IndianapoUe  and  Tern  B^ute.  Tbs 
work  upon  the  Crawfordaville  and  D.«nville  Road  is  progreesing  finely,  and  it  is 
expected  the  iron  will  be  laid  from  Crawfordsvilla  to  Indianapolis  by  the  26th  imfi. 


I869J  €BBXP  TUKBPORTXnOV.  385 

CHBIP  TRANSPORTATION. 

The  snlgect  of  cheaper  traDsportation  from  the  West  to  the  East  hat 
Rltrscted  much  attention  of  late.  The  report  of  the  Hon.  Israel  T*  Hatch, 
of  Bu&lo,  to  the  Secretary  of  the  Treasury ;  the  speech  of  the  same 
gentleman  before  the  New  York  Produce  Exchange;  the  mission  of 
representatives  of  Kew  Yoik  grain  interests  to  the  shippers  and  dealers 
of  the  lake  cities;  the  action  of  the  Board  of  Trade  in  tiiese  cities ;  and, 
Unallj,  the  convention  of  delegates  from  boards  ot  trade  in  the  lake  cities 
at  Cliicago  during  the  last  week,  attest  the  interest  that  is  felt  id  this  mat- 
ter by  shippers  and  commercial  men.  This  action  and  agitation  has  been 
^timolated  by  the  conviction  that  the  cost  of  transportation  of  grun  and 
bread^tuffs  is  higher  than  is  necessary,  that  the  transfer  charges  at  Chicago, 
Buffalo,  Oswego  and  New  Yoik  are  too  great,  and  to  the  further  fact 
iliat  the  merchants  of  St.  Louis  and  New  Orleans  are  energetically  moving 
r*iili  reference  to  making  the  Mississippi  the  outlet  to  the  sea  for  agricul- 
tnral  prodnots  of  the  Northwest.  Other  disturbing  causes  are  the  agita« 
tion  in  reference  to  a  Niagara  Ship  Canal,  the  enlargement  of  the  Welland 
Cioal,  and  the  marvellous  ^owth  of  the  railroad  interest  wiiich  menace 
ibe  ordinarily  cheaper  lines  of  water  communication. 

Grain  and  flour  will,  as  a  matter  of  course,  take  that  route  to  market 
wbicb,  all  things  considered,  is  the  cheapest.  Time  is  not  an  important  ele* 
mecL  To  the  millions  of  bushels  of  grain  in  the  Northwest  which  seek 
a  market  various  routes  are  presented,  and  the  solicitations  of  these  are 
^f  Tarious  degrees  of  strength.  Thus  far  transportation  by  the  Lakes 
'M  the  Erie  Canal  or  by  the  railroads  direct  to  the  seaboard  have  been 
i^«i favorite  routes.  Rivals  have  risen  and  grown  threatening;  direct  trade 
«(ith  Europe  has  been  talked  and  dreamed  of,  but  there  has  been  no  really 
'-  rmidable  competition  to  the  route  whiuh  has  for  so  many  years  been 
tlie  natural  outlet.  The  fact*  that  the  Erie  Canal  earned  over  and  above 
expenses  some  $3,000,000  last  year,  at  once  suggested  the  thought  that 
*fi«  canal  tolls  were  excessive,  and  this  stimulated  an  invesligation  which 
v;  shown  that  freight  and  transfer  charges  could  be  reduced,  and  that 
'be  whole  busin^iss  of  shipping  grain  could  be  transacted  at  leas  cost,  and 
'^e  saving  be  transferred  to  the  pockets  of  the  producer  and  the  con- 
'amer. 

Iq  the  discussion  of  tins  question  of  cheaper  transportation  there  are 
^^0  classes  of  reasoners :  One  believes  that  the  cheapening  of  freight 
must  be  in  the  direction  of  water  transportation ;  the  other  looks  to  the 
railroads  as  the  certain  means  for  reducing  charges  and  as  the  command^ 
^n^  power  in  transportation  for  the  future.  Int3  this  question  we  do  not 
I  ropose  to  enter  at  present.  Our  object  is  to  show  that  freight  and 
TiDtftr  charges  are  now  too  high,  and  that  they  can  be  reduced.    To 

6 


386  OBIAP  TRAK8P0RTAT10H.  [Jfof, 

transport  a  bushel  of  graiD  from  the  MisaisBippi  to  the  seaboard,  it  now 
costs  52^  cents.    Tie  details  are  at  follows : 

Freight  by  nilUo  CblciiKO 9 

Jnvp'ctioQ  On  asd  OQt>. % 

Storfige ta 

Coift»IU  MIO '9 • •....« 1¥ 

Freight  to  Buffalo ftX 

Intnnoea • IX 

Bkvator  at  DniE&lo 1 

HMidiisg V 

Cofnn>i>BtooBat  Bnffilo ...  IX 

Freight  1»j  canal  to  New  York — Ux 

Sxp<:nBett  in  New  York S 

Total  ezpenaes... Sk 

Of  tbis  sum,  40  cents  are  for  caniage,  and  12  j^  are  for  trashier  and  local 
ebarges.  Tbe  railway  West  of  Chicago  receives  20  cents  for  200  milcf. 
Tbe  canal,  352  miles,  and  ifae  Hudson  Kiver,  150  milea,  reqmie  1Z\ 
cents,  of  which  6  cents  are  for  tolb.  Tbn  lake  charges  for  a  distance  of 
more  than  a  1,000  milea  are  but  6^  cents.  Tbe  aggregate  is  about  llO 
a  tOQ  from  ChicsgOt  or  tl7  from  the  Mississippi.  Tbe  charges  at  gnuQ 
elevators  vary  from  cne  cent  to  two  cents  a  bushel.  Tbe  charge  for  shovel- 
ing is  from  $2  to  $5  for  1,000  bushels.  At  Buffalo,  last  year,  the  trassfer 
apd  shovelling  charges  on  36,754,948  bushela  exceeded  tbe  canal  tola 
by  $216,000 ;  and  at  Oswego  tbe  transfer  charges  a'one  on  6^70,466 
bushels  exceeded  the  tolls  by  1 15,000.  To  this  the  charge  for  ahoveliicg 
is  to  be  added.  It  i^  a  cuiious  fact  that  the  steam  elevators  have  actuallj 
been  in  the  habit  of  chargicg  more  than  the  same  work  could  be  doce 
for  by  band  power.  Two  cases  are  cited  at  Buffalo.  In  one  in^taniv*  x 
dU'go  of  8^,000  bushels  of  oats  was.  transferred  by  an  elevator  in  tiuecr 
hours.  Tbe  elevator  fees  were  $1,740,  the  cost  of  shovelling  $435 ;  toti.. 
$2,175,  or  2-}  cents  a  bashel.  In  another  case,,  two  vessels  were  unioniieJ 
by  hand,  and  the  cargo  transferred  to  cars,  at  a  cost  of  1^  cents  a  bosbcL 
An  inspection  and  comparison  of  thc>se  figures  indicate  that  in  order  t>^ 
cheapen  transportation,  it  ia  not  necessary  merely  to  reduce  canal  tolls  acd 
freight  charges.  The  local  charges  for  transfer,.etCi,a1so  require  reductlos. 
The  following  statement  of  present  prices,  and  estimates  for  the  future,  sn 
made  by  a  gentleman  in  Buffalo  who  is  familiar  with  the  whole  snljeei: 

0 — Present  latea — -»  < Vrotfttare — » 

l^heat,  •  orn,  V  heat,  C^n, 

per  ton.  per  ton.  pet  too.  per  us 

tahofrHffhta $3  83  $S  8S  |i  38  fid 

Oanbl  fnlKbti SIS  S  91  118  le 

TraD^^•r  ch  rsee S  04  i  04  IS  T^ 

bUtetoUe son  ITS  ii  « 

ToUl ^ $9  64  $9  OS  $Sei  $547 

As  the  elevator  charges  at  Chicago,  Buffiilo,  and  New  York  are  5^  cecu 
a  bushel,  and  the  shovelling  from  1  to  11  cents  more,  a  movement  for  a 
geaeral  reduction  has  been  made.  The  work  can  be  profitaUy  done  st 
half  the  price,  and  tlie  leading  dealers  in  the  ports  named  have  agreed  to 
make  tbe  reduction.    It  remains  then  fi>r  the  Legislature  of  the  State  c^f 


I860]  THB  BANK   BBPORTd    AND   THB   LATl   STRIlTOBSrcr.  387 

New  York  to  reduce  the  Canpl  tolls  to  a  proportionate  extent,  and  for 

the  transportation  lines  West  of  CliioAgo  to  reduce  their  rates.    They 

DOW  charge  froni  20  to  30  cents  a  bushel.     The  result  of  this  i^  that  grain 

is  carried  past  Chicago  and  as  the  journals  of  that  city  conf>p)Hin,  it  can 

be  carried  from  Central  Illinois  half  way  to  New  York  for  the  cost  of  car- 

ryin«r  it  to  Chicago  alone. 

This  sulject  is  of  great  importflnce  rot  onlv  to  New  York  City  and 

State,  but  to  the  whole  seaboard.   It  has  an  interest  too  for  every  producer 

in  the  great  Northwest,  and   it   is  not  strange  that  such   vigorous  efforts 

Hre  put  forth  to  secure  so  important  a  trade  in  the  channels  now  occupied 

i>y  it,  or  to  divert  it  !nto  new  channels.    The  business  of  the  Erie  Canal 

comeH  from  the  West.    Only  one-ninth  of  its  traffic  is  local.    The  reaJue 

is  from  beyond  Buffalo.    There  are  single  States  in  the  West  witich,  when 

the  Erie  Canal  was  dug,  had  not  even  a  name,  that  furnish  it  now  more 

traffic  than  all  ttat  the  State  of  New  York  now  supplies.     Year  by  year 

this  business  increases,  a*«d  it  is  the  part  of  wisdom   to  see  to  it  tl'at  the 

chflnnei  of  trade  is  eqnal  to  the  demands  upon  it,  and  that  the  Erie  Canal 
remains  what  it  basso  long  been,  the  great  route  of  transportation  between 

the  seaboard  and  the  West. 


THE  BANK  REPORTS  AND  THE  LATE  STRINGENCY. 

We  publish  on  another  page  our  tabular  summary  of  the  first  reports 
made  under  the  new  law  by  the  National  Banks  of  this  city.  In  conse- 
quence of  the  change  in  the  form  of  the  returns,  which  causes  them  n^t 
t)  correspond  precisely  with  former  statements  the  aggregates  are  not  quite 
.'0  convenient  for  comparative  reference,  but  this  difficulty  will  be  obviated 
in  the  next,  as  the  present  form  is  to  be  adhered  to  in  future,  and  circular;) 
to  secure  this  couformity  are  now  being  ad<lressed  to  the  National  Banks 
:iil  over  the  country.  There  is  one  point  of  view  in  vrbicb  the  present  ic- 
}'orLs  are  more  valuable  than  any  of  those  which  have  heretofore  be  n 
published.  For  this  report  was  niiade  under  such  circumstances  as  pie 
rented  all  cookery  of  the  accounts,  and  all  preliminary  preparation. 
Ibese  returns  therefore  will  afford  a  very  good  starting  point  for  future 
comparison,  and  will  show  with  trustworthy  accuracy  the  changes  which 
lake  place  from   time  to  time  in  the  position  and  strength  of  the  banks. 

After  the  recent  stringency,  caused  as  it  was  by  a  lack  of  loanable  re- 
sources in  bank,  we  might  have  expected  to  have  found  these  institutions 
holding  a  weaker  reserve  than  they  really  appear  to  show.  The  net 
amount  of  their  liabilities  is  reported  at  1(187,000,484.  iNow  the  25  per 
ce&t  reserve  which  the  Internal  Currency  Act  requires  would  call  for  a 
legal  tender  reserve  of  about  147,000,000.  But  the  banks  really  hold 
153,801,622.    That  is,  they  are  stronger  in  reserve  than  the  law  requires. 


S88  TEOI  BABX  RIPORTB  AKB  TBI   LATB  STRJlSQKlCCr.  [Jf«f, 

They  hold  an  excefls  of  legal  tesden  aniountiDg  to  no  kn  a  snm  tbio 
(7,051,601  which  is  certainly  a  very  handsome  exhibit.  The  qoettion 
arises,  however,  how  it  has  happened  that  with  so  mneh  strength  the 
banks  were  in  such  distress  as  to  be  obliged  to  charge  iisnrioas  imta  ibr 
money  throughout  the  recent  period  of  financial  etringency.  Perhaps  i 
partial  answer  to  this  question  may  be  suggested  by  an  analysis  of  the 
elements  of  which  the  reserve  is  made  up. 

The  aggregate  amounts,  as  we  have  said,  to  almost  954,000,000.  Of 
this  sum  less  than  one-third  is  in  greenbacks.  The  rest  is  more  or  leas  us* 
available.  Five  millions  in  gold  and  gold  notes.  Fifteen  millions  are  in 
Clearing  House  Certificates  pajable  on  demand.  Fifteen  millions  are  io 
temporary  Loan  Certificates.  All  this  reserve  of  Certificates  hears  inter- 
est at  three  per  cent  It  thus  appears  that  the  reserve  which  the  bsnb 
4ire  prohibited  by  law  from  lending  to  the  public,  and  are  compelled  to 
•keep  on  hand  as  a  basis  of  credit,  pledge  of  solvency  and  a  guarantee 
•to  the  people  against  panic — this  reserve,  or  thirty.one  millions  of  it,  the 
banks  have  lent  to  the  government  at  3  per  cent  or  about  half  the  ustttl 
current  rate  of  interest.  It  is  evident  that  this  is  an  unsafe  and  undesira- 
ble state  of  things.  The  greenback  reserve  is  too  small  for  safety,  and  the 
interest-bearing  reserve  is  too  large.  There  are  indeed  serious  objectioos 
to  the  allowing  of  banks  to  draw  interest  on  their  reserve  at  all.  As  so 
exceptional  arrangement  to  bridge  over  a  season  of  special  drain  for 
currency,  this  accumulation  of  interest  bearing  certificates  may  be  tolerated; 
but  the  principle  should  be  always  held  as  paramount  that  the  greenback 

reserve  should  amount  to  at  least  twice  as  much  as  that  part  of  the  reserve 
which  bears  interest.  The  Sfx-cial  drain  for  currency  to  which  we  h«rd 
referred,  hai  arisen  fiom  the  peculiar  circuinstHncaH  i.f  the  Souih  »tn] 
Southwest,  where  over  fifty  millions  of  currency  have  been  Hb^orU^i 
during  the  past  few  nionths,  and  most  of  this  currency  will  be  viiy^l^^ 
in  returning  to  the  Northern  fiuanrial  centns.  Tlio  piefenre  < f  th^-^e 
interest-bearing  certificates  in  the  reserve  of  the  bank?,  unfits  that  reserve 
for  performing  with  the  reqtii^ite  pliant  elasticity  the  functions  which 
devolve  upon  it.  This  brings  on  a  rigid iiy  and  spasmodic  obstinacy  of 
the  movements  of  the  fiiiaiu'.i;  1  machinery,  and  a  const^qiient  sp^sm  aD<i 
stringency  in  the  money  market.  It  is  even  asserted  that  a  few  atle8>i 
of  the  banks  exhibitf  d  a  di^tpoMlion  to  exHtrgerale  rather  than  to  niollifv 
the  distress.  Certainly  8v>ii)b  of  the  private  hankers  and  mcney  lend«?ri 
were  tempted  to  do  s^o,  because  of  the  large  profits  \%hich  the  usurious  nitvs 
of  interest  broughi  ihem. 

On  the  whole,  the  siattment  lefure  us  is  amply  sufficient  to  prove  th At 
our  banks  are  in  a  strong  cofidil^on,  and  that  although  in  this  delicate acd 
fundamental  arrangement  tuucl.ing  the  reserves,  there  is  room  for  iinpro%'e- 
roent,  still  as  capital  and  currency  are  now  pouring  rapidly  towards  New 
York,  and  will  concentrate  here  fur  soii.e  titouths  to  come,  with  iocrt«^- 
ing  accumulations,  we  have  one  of  the  most  iniportant  conditions  fur  ea>e 
in  the  money  maikct,  and  fur  such  movements  in  the  Hnancial  meci^tD'^ui 
of  the  country  as  are  usually  productive  of  active  speculation. 


1869]  VOBTHBRH  CBIITRIL  RAILROAD.  389 

HOfiTHBRI  CBffTRAL  RAILROAD* 

Hm  aamal  rsport  for  the  ftr  ending  Dsoeaibsr  81«t,  1838,  sliowi  the  following, 

eirniogi: 

PromFrelgbti 8S.«ntM0  TT 

"    P^'S^gfn 914,76)04 

"     Fxpr-M 9i),6>085 

**    Uuitod  States  HalU 44,16')  00 

"    BiMdcy  tootoas ^ 178,670  K 

^  Tot»l«*niiiiff« .  $M61.8f(l  91 

The  opertilcsexpeuei  were 9,963,437  69 

HetrafBBna $1,189,034  89 

The  report  etatas :  The  operating  expenses  of  the  mad  were  7 1 .86  per  cent  of  the 
receipts,  binq;  4^  per  eetit  greater  than  in  the  year  1867.  The  increase  of  per  eentage 
ii  to  be  sttrihnied  to  increased  si^ioga ;  to  the  damage  don<s  to  the  lower  end  of 
the  line  hj  the  flood  which  oeenrrMi  on  the  94th  of  July  last;  the  repairs  of 
vhich  have  been  charge  i  to  operating  expenses,  and  to  the  rebniliing  bridges  on 
tbe  Shtmokin  DiTiaion. 

llie  large  increaee  of  gross  receipts  for  the  ytn  does  not  show  an  equivalent 
iocrease  of  tlie  net  iooome.  f'nt  the  extraordinary  expenses  jast  referred  to,  together 
vith  the  reduction  of  rates  received  for  the  tonnage  moved,  will  sooouot  for  the 
failure  to  realise  the  additional  profit 

Tbe  average  rate  received  f«>r  transportation  of  freight  was  2.23  cents  per  ton 
per  mile,  a  reduction  of  88-100  of  a  cent  mr  ton  from  the  rates  received  the  previous 
year.  The  same  rates  of  freight  npon  the  tonnatre  of  I  ^ 68  as  received  n  1867 
woqH  hav3  given  nsan  ad  iitional  n^t  profit  of  ^v^  hundred  thousand  e*ght  hundred 
•nd  eiicbty-nine  dollars  and  six  cants,  ($600,889  06.)  The  reduction  of  rates  has 
inared  to  the  benefit  of  the  consumer,  and  is  the  best  evidence  that  can  be  given 
lo  ihow  that  tbe  mansgemeot  of  the  road  is  not  adverse  to  the  interests  of  the 
public. 

The  advantages  to  the  C  ty  of  Baltimore  to  bs  derived  from  the  ability  of  this 
company  to  reiwh  tide-water,  we  believe,  is  now  thoroughly  appreciated  by  the  city 
»Qth«ritiett,and  we  HaTe  no  doubt  that  means  will  be  taken  to  have  the  work  on  ihie 
Union  Riilroad  resumed  Hud  pushed  forward  to  completion. 

There  has  been  a  very  large  if  create  in  thf^  coil  trade  over  the  preceding  year, 
Tbe  roal  transporte-i  South  in  1868  amrunted  to  602,026  tone,  against  468,919  tona 
in  1867,  an  inereabe  of  t4'<,106  tons.  Oi  this  increase,  26,741  tons  w^re  carried  to 
Baliifnore.  and  the  balance.  I2I,H66  tons  to  local  stations  on  this  anH  connecting 
roed^.  The  c  a1  transported  North,  to  Elmira  and  pilots  beyond,  in  1868  was 
^  1,B77  tnn»,  against  86,619  tons  in  1867,  n  increase  of  96,(i)68  tons.  We  anticipate 
t  farther  increase  in  this  businef>s  during  the  present  year. 

In  1865  it  was  determined  upon  to  issue  a  s*x  per  cent  mortgage  of  $2,600,000 
for  tbe  porpose  of  purchasing  (equipment,  and  making  such  improvements  ai  might 
^  r«qair«d.  This  was  done,  and  about  one- half  the  bonds  were  sold.  But,  owing 
to  the  hei  of  its  being  a  t'nir  m<)rtgage  upon  the  pr  •percy,  we  found  it  difficult  to 
use  the  remain  *er  at  a  price  we  considered  them  worth;  an  J  fin*  ting  tuo  thit  im- 
fvorenienta,  which,  at  the  time  these  bondi  were  issue- 1,  we  thought  oould  bn  poit- 
P^oed  for  some  years,  had  now  become  imperatively  necessary — it  wa^Heemei  be«t 
^ceate  a  consolidated  m>rtgageanJ  withdraw  the  bilanco  of  the  loin  fro«n  the 
^o^^tt.  This  has  been  don*'.  A  raorts^age  of  1 4,  0  >,0  »0,  hearing  8ix  (6>  pe- 
^^t  biterest,  payable  in  coin  free  from  taxation,  has  been  created,  an  I  is  to  be  i^^ened 
^iyai  the  former  bonds  of  the  com  'any  are  retired,  either  hy  purchase  for  tbe 
KQkiog  faodii,or  by  cancellation.  A  portion  of  the  $2.60  ',000  bat  been  retired  and 
^  >iit«  am  unt  of  the  pew  b  •ndi  have  been  s  'Id,  and  we  are  now  offering  a  limited 
BQtoher  of  them  at  par  and  accrued  interest. 

With  these  bon^s  we  shall  be  enabled  to  cancel  the  fl  mating  debt  of  tbe  company, 
iQ&be  the  impnivemeots  which  cmnot  bi  UeUyed— while  tbe  funded  debt  of  the 
^ptoy  wiU  not  be  iocrea->ed  beyond  its  pre«ent  amount.  An  J,  by  the  time  this 
^Ure  mortgage  is  issued  it  will  be  tb-«  fir^t,  and  only  mortgage,  except  the  annuity 
(jth«  Stale  of  Maryland  ou  this  property. 


390 


DKTROIT   AN»  IIILWIUKBB   BAILROAD. 


[X«9, 


The  regoUr  paym^nte  have  been  wnd^  to  the  tioking  f  ndfl  during  the  ywr.    In 

the  sin  kit  <(j^  fund  for  the  rf  demption  of  the  bonds  riuH  in  ]886  there  u  now  lour 
hundr»d  and  th  rty-oae  thoustind  dolUra  i|4Sl,<00)  of  theee  boode;«od  in  tbt 
g<>neral  pinking  fund  we  have  tvo  hundred  and  fifty-two  tbooeand  five  hniidr«d 
doliHTS  (12)2,600),  an  iucr  ase  in  both  of  one  hundred  and  one  thonaaiid  doUan 
(I  01,010). 

RkOEIPTS  AKO    FXPFKDITUaKS  FOA  TBI  TKAK  SKDI!«a  DVa  Si,  1868. 

EzpenteaofCanandal^liiaDir    M3slS 


Rics  rra. 

Eaml^'irs  of  Main  Liu** $S,9  7,161 

Wrikht»iUrBr 43.?») 

"              hhaniOkiuDtv i7-.,T«8 

FlMr*        " 628,6» 

»•             Ch  mansr    *' 1H0,8J»7 

**            CunaudaiKva " VaUfiU 

|4,161.S*>1 

C  pltMs'oclf N\OJU 

Bods 1,U0,«W 

Re^lee.aitf IWtf 


Total. 


.$5,4ja,467 


•FNcirrBia. 

Ispfn-BCBif  Vtti  •  I  ill  • $l,808,'f6B 

*•  Wiiijhttv.ll    Br 8fi.870 

ShamokiuDlY IMJtSt 

B  uiiri        **  4^iih 

CheoiUag    '* Ibl,5l9 


IntPWft «M» 

D  vidondB  on  capital  st^ock SiSli 

TazeaoM  carl  al  atoct^  Ac AtSl 

Urnt    or    Kraoi'kiu     VaJlej    and 

Pot^vi.leRail.oaa 1Q148T 

Bent  ot  Bliul-a  and   WlUiacaport 

Rillro4i 1€S,0Q0 

R-nt     of    Khnln,     Jiff.    A   Cjb. 

R  Irotd. SSiCm 

D'BCOU-  t  CD  bOQ^B 9&.1SI 

SlnH'^g  fai.d« !«!,•»» 

Co<i»tracUou W,<I7 

Hial«»iace tfl.Hl 

Eqal^meut 47S,741 

f4,l<97,«( 

Fioatlng  debt  d'^creaaed 41<5&1 


Total $5,lli,4R 

FINAVOIAL  STATBUINT,  DXO.  81,  1868. 


aSSETB. 

Rallwuy  and  arporicua  c^s $8,li07,9RS 

Cautou  fZ  euklo 84*2182 

KoAle^t  to 641.4^9 

liqa.vmju' f,l:iU,887 

$12,'  ll,7Ci 

C  Bh S7M92 

Pa-pe  geragen  8 8.8^5 

Freigut        •• 11S.018 

Poat  c<fflc  •  Dvpartmeiit lS,Oi  > 

»c  *ck  of  WriifhfBU.le,  York  A  Qei- 

tyBiur^'H  ilr.iai  lo :....  47,596 

Debt  •  r  •'  righ  *vi\  e,  York  A  Uet  y*- 

barg  Hni  niidCo.            76,464 

Bond-'f  Warren  A  Frankl'n  Rail- 
way Co   10.413 

Todi vldn  iN  mid  corporailocB 809,76ft 

HaieriMlB  and  Bup  i.e« KsbV^O 

ToUlaaze.B 13,0  8,871 

tU077,.10 


LI4B*X.inSf. 

C'tplUI » tock  'Viyi^  cha'  e».       ...  $4,'^ 
Funded   debt,  less   Bi.kiag    faad..  f\'.9\JM 

•  ills  pHy. bid 4lt,r.5 

Intt-reB  ,  Ac.,  accrued.. SM&»C01 

Iner  St <:•  npons li^leil 

Pay  ro  1"«  an«i  vouchers 4MMy* 

F  roftinroadB—  MB>engtfraccoant...  s\9:7 
Foreign  roiida—flrcigut  aeount.  .  11.M6 
IudivU;aalB  ana  cor i  orations lt<7,lis 

$Ii,.1iiO,«G& 
Prcflt  and  Iobb  acooiint  ace*t 79^ A  S 


$i80>S»8n 


Total  ezpsnBOB $S0I,7M  71 


Ba!a  ue  p  out  w  incom-j  accoant. 


al4d,9«l(J 


Total $;4^06lal 

EJumingt,  Gokl 

Frodaet-l\6?8  fiaska  of  QalckellTer,  at  68J t7r8  840 

Leas  ureatcouRt  J  educed 9C,(iC7 

$6:fi,]TICQ 

Proilt  07  r  $V>,  on  sales  of  5,056  flaik^ £0,>tt  71 

Profit  on  p  rcha  en  and  sales  uf  a,764  flaska 6,hm  Si 

Kent?,  prlvil  g«B,  ^ 84,40143 


Total. 


$147,061 » 


^*,<^#»^^^^^»^i  \^t0*t^m^^^m^ 


*^m^t^^^^^^0^^^i0^^ 


DETROIT  AND  M  LWAUKSB  RAILROAD. 

The  rpport  forth^  yearenoing  81st  December,  1 863,  shows  that  the  gro*8  trrfflsand 
rentii  f  >r  the  year  were  ?  1.7 1 8.09  <  72,  being  $18,21 4  42  less  thio  tho<ie  of  1867.    Hie 
working  exp^-nsca.  tax<*s  and  i'lBurance  were  $1,018,686  06.  being  $21.:  ^6  96  greater 
thanth  se «  f  1867.     The  net  revenue  is  $70i,457  66,  beios;  $69,J<95  26  greater  than 
that  of  1866,  and  $64.8Sl  d8  le.e  than  that  of  i867.    This  baa  b^n  applieJ  (o  the 


1830] 


KOflTHBASTKRV  RAILROAD   09  SOUTH  OAROUiTA.  391 


:otpre«t  on  fh^  bon'ed  debt  ejwiwf^  prior  to  1866,  $868,686  80;  b  'part  towards 
iotFr  St  on  bonds  of  June  80,  1864,658,550;  to  sundry  disoou' ts  end  exchangee, 
(5.670  *27 ;  to  a«w  worko  and  roilin^f  stock,  $8  ,896  8  ;  to  rebulMint;  on  acccoaot 
o/  the  fire  in  April,  1866,  f  1,6  'I  52 ;  to  new  cirs  on  same  sccunt,  69H  08 ;  to  pay> 
m«'Dt  for  baiff^ge  and  merchandise  coDsomed  in  that  fire,  $20,578  15;  to  old  riebts 
of  the  Deiro  i  and  Milwaukee  Riilway  Coinpnnv,  for  sopplien,  $:^,6S8  71 ;  to  redemp* 
tiro  of  bonds  i'^vned  to  (he  O  lamereial  Banit  of  Osnadii,  80th  June,  1866,  $100,000  ; 
&o(i  00  seenuot  of  divilend  to  Great  Western  Railway  C  mpany  of  Canada,  on  pre 
]fr«-n  e  sh<r€9,  $78,82^ ;  the  wh  >le  ezclusivH  of  interest  and  divi  lend,  amount!*  g  to 
I'ill,  25  78;  and  after  dedacting  the  amount  rt*ceived  f»r  iosarance  on  the  steamer 
'\Uil«iiuk<»«  "  leM  paid  for  tosses  f  through  freii^ht  an  I  b i^^age,  bf*in^  net  $80,7 17  96, 
tfl75,<M»7  82.  I  he  balance  to  credit  of  Net  e^imae,  Slat  December,  1  -  67,  was 
r5iiO  84.  and  tbe  balance  to  credit  of  that  account  81st  December,  1868,  is 


tli-JliQ    A  I  ^ 


'i' 


:14J9  61. 


The  toui  antMu^t  paid  on  scc^unt  of  the  fire  of  April,  1866,  is  $8fi8129  74  <1es8 
TKeivprl  f >r  iftsnraoce,  $19,7B6  66).  AU  of  the  vecmd,  mortgage  bonds  due  15th 
May,  186«,  h^Te  been  eat  nd«d  to  15th  May,  1875,  except  $H,5  0,  which  havd  not 
l^tro  |Te.«»nt«*4i;  and  all  the  funded  coupon  bon^U  due  1st  J^nu^ry,  1866,  have 
Ufa  «>KtefuJel  to  the  sime  date,  except  $3,217  50,  not  yet  ireeented.  Of  the 
cuup.i«  h)o  du  due  1 6th  Nitvemher,  1868,  $68,  92  6'i  ba^e  beea  extended  to  the 
Mine  date,  and  the  r^mHiiidt'r  wilt  be  extended  from  time  to  time,  an  presented. 

The  b«f)d«'l  d«bt  uni  stack  of  the  c  mpany  may  be  seen  oo  reference  to  cur 
UHe»  of  K«f  raad  Bonds  and  Stc  s  o  i  a  subsfqu«'nt  page. 

Ttv.  fa)t«>«iiig  u  a  oeoiparatiTe  statement  of  ihe  receipts  and  expenses  for  the 
\x:i  fireyejir*.: 

Per  Cent.  Total  ^er.  Kx.  Per  Cent. 

Teir* „.    Receipts.  Work''g  Ex.      on  1  cindin?  on  KetRcfT. 

Qrofs RtTs. Taxes  & los.  Gros»Re>.  balance. 

I-l $1,9  8,109       $S8«,S2<I  MM  *^b^^M  66.84  $l'W,ft44 

>'o l,fi«1.736  u:jy,6;0  66  51  l,«0',75l  6J.15  C90.984 

>• 1,»»U:7  «5!*,  «8  67.79  1.024,156  6174  6}5,0«a 

"^T 1,':M,«)S         9r.711      ■     CSaa  »tt9  519  66  86  7r>8,7F9 

l^ 171O.00S         966,tti6  55.69  1,018,636  ^8.99  704,466 

Aid  the  aumlier  of  passengrrit  and  tons  of  frei;;ht  carried  du  log  each  of  ih^se 
years,  together  wiih  the  KrusH  earnint^s  then fi on,  are  as  f  illows: 

PA'SXKaXBS.  rBB  OUT  AWDLIYX  STOCKS.  TOTAL. 

Ko.  lonn, liicind  Dg     R^eiptt  Parscnger 

tcira. « Number.      Receipts.          weliebc  of  exiludinfc  '  nd 

Live    tt>ck.  Storage.  Ac.  Freight  '^oc^s. 

'-^rl 4113,901           $R61.F«7                16VI  1  $hl8,919  $1,280,746 

■-»"..... 4  »,..t4              »*4i,87«                 18',4n  H»,l!W  l,b48  ^69 

'-^ 43J«,45.SX          794,'»6«                «:8.J40  818.194  1.608,746 

1  ""^ 4.8«»4             8iT.ie9                r*\Ai}\i  848,634  1,'.16,721 

l^i 43.v^^X         '^'^*^iilil                S87,749  901,4l4  1,655,'«66 


MRTHEASTEftH  RAILROAD  $F  SeUTH  CAROUNA. 

The  report  for  the  year  ending  March  1,  1869,  states  the  following^ 

Iiil»rr-NW.  In1F8S-'6n.        Dec.  Inc. 

H«-dpts  from  f  e*KM 617V.6 18  Hi   $I6}.,m44  >$»   $20.>e848         

»•     pa^^e  gers    JW.OSs  ".e       8».m  72       7,86  04        

*«     malls  ani  other  sources 14.49 j  67       l&lli  78  ..  |8,'^^:0 11 

$m)3^4  7^   $2o4.16l  89   $26,6 ?8  47   $:i,6:20  U 
'  pcraUng  expcases. ^4,li6^  89     116.469  09 

|10i&76  V3   $108,7:(6  W 
£Tr<««  of  n«Mneonie  f  n  166ft-^6fl $8.1  S  c7 

Ti«H  t<m-nt«of  the  1  e.is  ir«'r  wfUhow  thitt  there  rt-maioed  at  \hn  credit  of 

prufit  end  |  ^^  aecuDDt  at  the  c  o'e  of  the  )Nti*t  year $10,  09  14 

Sitte  wh  ch  it  has  bi«n  luiilie  ensdiied  wl  h  r.icteds  of  t  anspt'rtioa  for  1869  aad 

Ifcttt ll«,726  80 


$:i9,184  44 

And  ch^rgM  wirh  Ir  forest  on  bonded  d  ht  nnd  cnnren'  Interca*     $'^8,666  79 

U-  of  pioH  III  S«cleiy  H  II  a  d  M  rl^oo'  iirl  go  lomp.ny 4,887  6^ 

KKhtof  way,  prTluttitly  uusettled 1,U11  UO       97  014  83 

l^v  Bs  a  ba'anee  at  ciedl  of  profit  and  loss $22,120  11 


892  HORTaBAariEV  bailroid  or  bovth  oakouka.  [ifay^ 

TIm  IbHowkg  will  appMr  m  the  iodeUednett  im  the  28th  Febraarj,  ia69  : 

1«400  flrft  iDortras«  hon^B.  of  fMO  esrb.  doe  Pe^fcvber  1,  las') fTVirai  M 

SflO  Be<-ODd  mortfsag  bonds,  of  $5  U  mcIi,  dae  bcptember  1, 1818 143  000  6ft 

S,100Bbare«preiH*ivdiitock,$9a ie\mm 

Cemilciites  Of  IndebtedneMB  (for  Interest  Mior  to  let  Mai Bb  ]8S:> 107.'»  :« 

OntstandinK iB'eresI  to  1st  Mareb,  18(fZ llLWai 

Oatstandinff  interact,  dwelnca  h \«6IM 

R«aI  estate bouds 18(M<t 

BIINTnyabte 13Mt« 

Profit  and  lots SlllO  11 

BtoGkbfridtri •W.!4i0a 

$a,l»^.OITB 
T«  meet  tbla  iiideMedne*f  we  bsTt  the  road  (lOi  miles  iMg)  with  its  sidtttoga, 

eq  ipment,oic.,  ataoos..«f. $a,14ff,^ai>tt 

Ana  acsets 4987V8? 


Total. 


The  amoant  of  second  mortgage  bonHe.  oriitiiiaJly  iaeaed,  wae  tSOO.OOO— of 
which  $140 /x^O  were  sold^the  remainiog  $106,000  were  sntaeqiienlly  pledgi-d  aad 
deposited  with  trti  tees,  bb  a  aecarity  for  a  e>  rrespeo('i^g  amcvol  of  preferred  stock, 
■ay  115  .0(/0.  This  prt'lerred  atock  ia  tbeo,  ▼iriually,  a  subeiitote  for  that  amonat 
of  secoDd  mortgage  bonds. 

As  statfd  abore,  the  company's  firat  mortgage  bonds,  amemittng  to  $7Of>,OO0, 
mature  on  the  1st  September,  1869,  while  the  eeoond  mortrage  boode  for  $  00,jOO> 
are  past  due, hsTiog  matnrtd  on  the  1st  September,  1868.  Of  the  coopoos  r^e- 
aeoting  the  ioereat  on  the  fir»t,and  nnpail  op  to  Mardi  1st  1867,  there  are  atitt 
outstanding  about  f  92,fOO,  and  of  iboee  representing  the  interest  on  the  secood, 
and  in  the  same  positicn,  there  remain  about  $22,000.  These,  with  our  pa^t  doe 
bondS|  are  now  hela  by  comparatiyely  few  parties,  who  hare  eobmitted  to  a  4tby  ia 
their  aettlemeot,  until  tbey  rouli  be  embraced  inthegen  ral  plan  of  the  eonpaaj 
for  tie  reac^jinstmeot  of  their  entire  d«Vt;  to  take  effect  in  September  i  est.  We  tn 
aUo  indebted  in  a  balance  of  $28,OcO  cu  certain  bonds  for  real  estate  in  this  ritj, 
pnrohved  in  1868,  and  dnly  secured  by  a  mortgage  thrreon,  which  is  anteeedcot  to 
those  executed  in  1866  and  1867,  for  the  security  respcetiTely  of  their  first  and 
aecond  morigrge  bcnds^  In  the  reac^justorcnt  of  our  detl,  it  would,  then-fore^  bs 
expedient  and  proper  to  consider  these  real  estate  bond«  ss  among  our  fit  si  anort- 
gage  bond0,  and  to  be  absorbed  by  them,  that  the  rpecisl  mortgage  ihereoo  may  be  do!j 
eaDcellfd.  We  would,  tbeo.  p'opose  to  you  to  cooeoldate  and  renew  thi«  who* 
indebtedness  by  the  issue  of  16.0  bonHs  of  $6  0  each,  amointing  to  $820,000,to  »« 
dated  1st  September,  1869,  and  payable  Ist  September,  189V, bearing  7  per  rat 
interest,  payable  semNHtiouaily,  by  coupons  sltacbed,  to  be  Ktyled  "*  fir»t  ptt^f^n^ 
bonds  ;**  aud  by  anfitbfr  usoe  of  641  bone's,  of  ibe  rame  ftat«>,  tern  r  bn«l  amcvtrnt  taeh, 
aa  the  first,  for  |S22.0i'0,  to  be  styled  ''second  preferred  bon<  »,"  bmh  t4>  be  se  utrd 
by  one  genersl  moitguge  upon  the  entire  property,  rig btp,  frai.cb»«es.  etr^  of  the 
COO) pan  ,  duly  expressing  the  order,  anH  definirg  the  coidiiiix s  «>f  ihrse  pfrf^rercf, 
an 4  their  relations  to  ercb  other.  Tbe  first  piejerrvu  bends  khuuld  then  ie  offered  m 
renewal  of,  or  txchange  f^r  our  old. 

Tirst  mortgag*' bonds  r  r •     $W.9B 

Ontstandlngi  tere»tsndinterssitbert*on.  VtM-^ 

kl  estste  bonds S^  *> 


$8n,CM 
Aad  tbn  second  preferred  bends  should  be  applied  to  onr  old  seeocd  mortgage 

bondPfor ^^1 

OatatHBUtng  oonpons  and  Interest  thereon ix^ue 

Xakiogoarloadeddebt. IU«M» 


18C9] 


lAKS  SRORB  RAILWAY  COUPAKT. 


S93 


u 
It 


UKE  SHORE  RilLWiT  COMPiVT. 

Thw  compaDy,  m  most  of  oar  rpadert  know,  was  formed  by  a  eoD«o1viation  of 
the  G>Te)aofi  tnd  Toledo  aod  tbe  Oleyelaid,  Paii  eBviHe  ^nd  Ashtabula  Railroads. 
The  Rn  tul  repurt  for  the  year  endiog  wiih  Slat  Jecember,  1868,  shiws  the  fol- 

luwir  g : 

Ihe  dfabnrseBBents  hsTe be^^  rs  T  Vows: 
1  or    r  .HAP  »rt  tion  and  Goo- 

»ral     xpeaes i9,iK)9.7W)  69 

Tax  a        *'8,405  IT 

Inttfie<it>aid 881,4 1  tf  OT 

JnlvDiTdend 6i4,i;40  SO 

"   Ja  nary  **         «i74,948  TO 

Total $4/.74.497  C 

Furplas.  Bee.  81, 1868. $i88,«9T  86 

Tbe  deWiU  of  iafereat  paid  aod  of  the  entire  eorplus  held  by  the  t  cro  compaciea, 
JiDuary  1,  l^68,  were  aa  to  lowe: 

iBter^-tiBO.P  and  A.  J  eht $'74,886  87 

O  a  d  «*.         " 806.480(0 

Jah  IH  idead,  8^  per  cut 68  ,9  W  BO 

Jn'j       "        4Jtf      •'        6;4,M876 


^  he  receipts  b  tj  becnaa  folic wa : 

from  rtifikiitn    .   $1,71«,8"6  97 

-     Kregh    8,995,980  44 

"     >xprrss 8^  1.886  17 

MaJa 48,:95  0i 

"    Mtflcellaieoa^ 177  79 


ToUl .$6,017,994  07 


ivx 


4H  

TrUl , $1,6*^1..^  1  19 

loal^WS * 268,  •97  96 

'•      (nCP.aa*  A.l/4s«r,JanQ  ry  l,i8id 'il^sn  18 

**      onCaudT.  ''  »*        '•      1.096,967  84 

Tctl $8,U)J,887  78 

The  KToes  reTeooe  of  1868  exceeds  tbe  agin'effate  receipts  of  the  Lake  Shore 
■ad  CleTelaod  and  Toledo  Railroad  Companies  during  any  previoas  Tear ;  and  the 
expeoM'a  of  1^68  embraee  a  large  outlay  upon  the  Weatern  (Toledo)  Division,  in  the 
rraeval  of  bridges,  of  bridge  hnd  caWert  mascnry,  of  auperstructore  ind  ballaatiog, 
smi  JMclsde  the  cooatraction  of  nine  and  cne  h>ilf  miles '  f  new  aiHe  traeka. 

Toe  Siofcing  Fund  Oommissiooera  report  in  their  hands  oo  January  1, 1869,  the 
foil  V  ng  »^i  aritiee : 

(^€THa- d  and  Toledo  f^tn-'lofcFnndCo'ida $8ff>/00  00 

Sanction  H.  R  lat  aortvaf^  8.1  DiTiylon  ttond « ..    4)0  0  00 

•  nited .  tatca  F.Td-  weoly  Bonda ItOcOOO  00 

lash. 8  46 


lotoi $50;»,0D8  4a 

Statement  *  bowing  tbe  Assets  aod  Liabili'iea  of  the  Lake  Shore  Railway  aad 
Clefelaod  and  Toledo  Railroad  Companies,  Jaooa-y  1,1869. 

A9»SiP. 

Cca»tnic*loi $18,68%r0  0i 

reoodTak 489,916  46 

*«ht  tola  Bra  ib 8*4,006  «9 

jqilpaent     8,81886601 


Vtte-ialaoDbind— *'o«<i  De  art^n^nt 
^          **            Miicb^Qi  »bopa  .. 
_^                         i/iir  k  no,  a.  •• . .  •  •  < 
FQeloabaad , 


179,890 

86.196 

199,866 

178.041 


66 
81 
96 
40 


*TOhnTyand  '  lie  B  F.Cow8tn«k 

Jaet^tuwBiind  hr  aklnir.  K.  CoBtofk, $400,000 

"  **  Koi<*a, 811,000 

^     *'  Ml*         (adTan-ea  t>> 

Cl€Te'an«  a«d  Fit  aha  g  •'  R.  Co.  B  ids $9,600 

*«  ermtain     ltai]roa<1  Company     tinds 8,5(i0 

To .,  Wh  a-h *     eatern   < .  R. Oj,  f .  .  Bda,       6,M0a 

Toledo C'tyJ-rJd^a    ood- 1.80O  00 

Blakii^Faod    ommlaflooe  a •398.9^0  i>«9 

BaUacrfdoafrnmAg  nUAB.  R.  Co*a 

>*i'li  ha  dveab  e 

Cath 


600,000 

s^aooo 

9n).80i 
671686 
9,0  0 
9.687 
4.(195 
1.80O 


00 
00 
00 
47 
00 
6) 
00 


$19,698,666  10 


671,7^6  9k 


1,976, «P9  8$ 

104,197  90 

1'.41C  98 

960,9  i9  98 


'iotil $9;;,&31,&;i5  9$ 


3*94  coNDinoH  of  thk  national  banks.  [^^t 

LCABILITIB8. 

Ck  IWtock $lS,OflO.OtK>  M 

HoHhnry  Bondfi.  iM>a  d  by  C.  P.  ft  A.  R  R  Co.,  dn«  Jn  7, 18r74.       6(0,100  00 
Re  Ihtcred  Lo  d^,  isMien  by  C.  P,  &  Jk.  R.  R.  >  o  ,  ciaa  ^aooDy, 

I8tu        1,000,000  00 

Tbitd  M  r*ga ;   iiondi*,  i  ened  by  C.  P.  A  A  K.  A.  Co.,  duo  Octo- 

Sinking  Fui.d  *  Utt  Ifott^iage  Boodt,  U-ncd  by  C.  *  T.  IL  R.  Co, 

en    Wu  V,  '.S-a S,01-l,000  CO 

iLortffMge  tiotidd  of  1880,  issued  by  G.  ii  T.  R.  R.  Co.,  dae  A|.ri , 

IH^S.r. .        SM,O(O00 

*Pru-t'nt  ca  h  Ta!ne ot  Hecnruiet  h .1 1  by  SluLiai;  Kua  1  Co  •  mita  oatua, 

$60tt.i  08  4  ( 

•lomt'on  1^.  Tt    F  r«t.  Mnt?a«7e,  Fns.  DIt  de  d  Bonda,  i'cnedby 

C.  &TR  R  C,  piht  dne W.0OP  00 

(uui  pr  hei.t<d  hit  redemption ) 

Jnoct  «<n  i<.     .  Fl  tt  Mortj^age  S  cond  1  ivideod  BoD<i»,    ne  De- 
cern h«T  18:2  i'6,onoi 

Incoiie  Hoi.di*.  C.  ft  T.  H.  RCo.,  due  Sopt,l»70    6,0  0  ro 

giviU  nd  •'  r  iil:  t.a l^S  (« 

Di.ai.i  livid  uds t. era  TO 

bap;a«acou.a t,003.9V7  78 


■^^^^^^^^^^w  ^^Np   ^^^I    ^  M  MI^V4^«^«^^^^^H^«^^^^0B 


CONDITION  OF  THE  NlTIOIll  BAMS  OF  THS  Cin  OF  NEV  TORI. 

« 

Tie  fjllowing  is  th*  report  of  tie  cot)ditinji  of  the  Niiioml  B  n^?  io  the  c;<y 
of  New  York  at  be  eloae  of  busine-s  on  ibe  17th  day  of  A.  ri ,  181*9 .  Number 
ot  backs  reporting,  tiliy-£ix: 

Dr.  BBS-tVBOXt. 

Loau9  and  dl^coants f  iS3.(S!>S  110  fl 

Overdrut'B s^il.':^)  91 

Ubited  8  i.tue  bon'S  iof>ec  r**  clrralatiun 4  *.ciki«.4S9  flO 

United  ."^  a'ftf  to  t»e  are  deposits....        ... ],'«6  .000  lO 

Unt«dS*'ici«    itiid<*  niid  8  cunt  e   on  hand ^ftvT.'iiOOO 

Othert>tocl(»,  hou'lit  and  morti/a  es  (A'*  p  rsrhedaie) P,I57«,TS6  1I 

Dao  irom  •  ili«r  N>iii  iiai  Hh  ke<'fl  icr  lich  doe) 10,5*.  9.574  SS 

Duf  from  ottier  bank   and  bankeia  as  per  schedule)    J.^bt.fnH 

Banking  ntu  B(%    ih  1  mil  e>iat  ,  a<  dlannturcMnj  flxtarcs 7,<>^.l^  t9 

CnrrtMir  t-z^enri-B  aid  t  xcs  (all 1,8T1,«TI  18 

Preminme &T  .90S  1$ 

Cat-h  <  cm   (lucl  dtng  <tamp9)(<8P«r schedale) t.-«rfl.4<040 

Bictianu'e^fo  C(«iiiigh  a-e liri.O-«i,«7l  S8 

Hiilaof  utbcr  ii'ttitiiiai  bjinks S;l9r^7I5  <0 

Btls    thtat    luikit K.3M0O 

Fnic  ionalciin*' cy  (I  clarliDg  Nickel.') 989,50  9 

ttpecie,vz:    Coi- $*,ft^«,655  lit 

fiold  Tr  «fU'v  nnteB H,4S  »«i«H»    0 

Checks  ou  oih.r  b*ka  payable  In  g  Id 1.4».»,8  6  01—    6  84^441  8S 

L'gal    endenx  ten 17,«--^.*0«  (•• 

8per  «eDt  cer  itiate^  ttampodaBCcariDg  House  cerliflcate? 1\  O  ittO  W 

8 pt-r ceiit cjr  ifleaiee lH,aiOOOuC0 

il«3,lin,9t9K 

Cr.  LIABILITII8. 

Capital  stock  paid  in 7.%.}9-2.700  CO 

Surplu-*  raiida 18^l»<i.aM  » 

Disc  U'lt.  ex  Imrgeo,  Interest,  and  profit  and  loia 9,<'v7,<»:9 '7 

CircQl  tinif  i:ot  •  •n>tinding 84,5'^s,S?7  00 

Biati'  i<ai>kciicuia  l^uuuiB'audlng SSa^098  10 

IndiT  dual  dt-«K>  lis $irr,t.5  ,%»!  04 

Ci-r  ifl<  d  ( be*  ks fti.-tH  ,tii>M  at 

CftHhlcr".  ch'Ck   on*«taLding 1,  8'>,U53  it-.'~2ii,8»\05S  n 

UDlt''<1  States  dip  *t>lt«  .  ..  8*,fti«0S 

J>uir  to  Nil  ional    on  s(ib  p'r^chedale). 6^8%7,»  5  :l 

Dae  to  other  bank»  itnd.Ounkfera  (as  per  echedale) 1  V'^BtsHli  97 

$«»,  101,0^  Sd 

Statement  8!>owiii«jr  the  comlition  of  the  lawful  mon  y  restTve  of  liie  Nu^i^intl 

BjdI78  in  New  York  cily  at  the  close  of  ba^ine  80.)  iht;  I7ti  dny  oi  At. I,  1869: 

I  lOiill  1  s  to  f  e  pr  feted  by  reserve— 

ClrcaMln"  ont-t«n«  I  1; $84,866,837 

Luc    Ldlxitn      depjtiturs $lS7.4S9!.99t 

Ctr  fieUtM  cka t4.:h&'0» 

Casblo  s  (hcCKi  oa  standing I,»^ti8a 


1860]  OOMIIKROUL    OnROKICLV   AND    RETIETf.  395 

Orw«dep«f*t«  828,39Rr/8 

Doetni  e Unte<! Stutct $<»/'« 

Daefo  n'loia*  unks  . 6^%^7.805 

Dae  10  other  b  Dk:>  and  bankers ! ];2,6;0,Oi 

GfOf*  flmonrit  of  :Ublliile9 $32%0S3,610 

f  oHoct- 

Dnf  «r«im  N«  lo  a1  Bark* $10.'S9«,%74 

Daefr  mnth«*Nink8  and  bankers.  i.J'fi  .'sTT 

SzUi-qgi4  for  Clca  injE  HcQM 19&,0(i0.()74 

Ket fttronnt to  be  proter^e'l $187.'0\484 

AmAunt  I  eqnlre   an  rtB^rv*  (15  p  c  of  nw  nmnnnt  to  be  protected) —     40  ?&0,131 

Fh)p<>rri>u  cf  refKrre,  whi- b  mast  consist  of  lawful  mouey  (two  flfrhs  of  tie 
re-erv.) ...;. $18,7  0,048 

I'QDd-  aTailable  for  leeerve^ 

Coin  $t,9-8.658 

Lea  tender  nutet 17.-S«,C07 

6nW   ircHi-nrv  noteK....     8.4S0060 

Ihree  p.  r  Cent  temporary  lo  n  corttflcat'.  a,  s  amped  as  CleaJng  Uonse  certlflc  .tea. . .  I\'i03,000 

Asyrsitte  amount  of  1a^  ful  "  nney  on  h^nd    •  .*:7,S'*',6M 

Tbrte  »,t  r  c  Lt  lemporjry  >uaa  oertldcate*  b  ..d  io  addition  to  the  above 1ft,0  O.UOO 

A{frega;eanionntof  ItaodsBTaUable  for  rese.Te ft  ,0i<l.tti3 

riied4ST»Isb!efor  reserve  c  xcecdlog  amount  reqoTred $7,(151,501 

COMMERCIAL  CHRONICLE  AND  REVIEW 

■osetirr  Air«l-i»~B«te8  of  Loans  «nd  Dlrconnt^—Hondfi  foM  at  New  York  Stock  Rzchnnge 
Bo  rd— Prlctj  of  Gover  meut  iecnrftlsat  New  York— Course  of  Coiii>o1«  mid  An  Hrlc^n 
►>ai  ItfpSHt  ^cwYork— '  fenlog,  Hfjjhe  t,  lowt'i«tnn»  Closing  Prfro- a«  th"  New  York 
fitock  SzchtDgH-  Gv-mral  Mi*t  ment  of  Coin  and  BoUionatNvw  Yurk  CuUfM  of  Gold 
St  Ntw  York— Con rae  of  Fore  gu  £x  hanise  kt  Mew  )  oik. 

1 1  Soa  cial  afljiis,  AptU  has  heeD  churasterize  1  priooipal  y  by  a  H.T.ition 
of  the  s'rirfrrncj  in  money.  At  the  opeDiDsr  of  the  moDtb,  the  bunks  r  fTered 
RTiooB  iocoDveoieooe  from  tbe  w'tbdrawal  of  carreoey  by  the  r  c  •ad'-y  corres- 
pCDicoiB  io  tbU  and  ar^JKoing  8tatf«.  QFaally  occarrio^  in  connfction  with  the 
April  fettlemeofs.  eg  that  fron  March  27th  to  April  10' h,  they  I  st  nearly 
t9,0M(i.0OO  ID  deposirji,  and  bad  to  contract  their  loans  96.5  >o.O  0.  This 
DOYement  was  oatara  ly  attended  with  excessive  rates  of  interest,  b  okers  h  ving 
hid  to  piy  npoD  st  >ck  loans  ra'es  rung'ng  from  10  to  50  per  ce-it,  the  ^trii  geocy 
being  apgr  .vated  throagh  the  Comptrol  er  of  the  Carrcrcy  not  ca  linj?  fir  the 
peri.Klicttl  ^tatemeDt  of  ba  k  ,  whijh  oainrally  p  evented  the  banks  from  expaod- 
bg  10  meet  the  exigency. 

Tie  irecdDtile  commanity  8nff;;red  serinns  inconvenience  from  this  coodi- 
tioo  0**  things,  it  being  found  ex t remedy  diCBcnlt  to  negotiate  the  Usr.  chflsof 
pap-r  at  10  to  12  per  cent,  wh  le  the  lowir  grades  were  almost  Qnualeiible. 
AboQt  (be  loth  of  tbe  month  the  funds  sent  temporarily  to  the  country  banks 
begin  to  flow  bick,  ant  cnrrenoy  hjp»(rom  that  time,  come  in  fnely  from  the 
SoQ'b  Sot\hwt8t  and  West,  so  that  within  the  iaet  three  weeks  the  bank-  have 
iacreafed  their  legal  tend  rs  $5  0<  0.000  and  their  deposits  $>  /  00.0<»'>,  while  tbe 
loan)  remained  abcat  stati  >niry ;  for  the  laU  h ilf  of  tbe  month,  therefore,  m<*ney 
bu  lien  easy  at  6  to  7  per  cut  on  demand  loans,  and  8  to  10  percent  on 
(liscmn's  At  tbe  close  <>f  the  month  the  currency  balance  of  the  Six^i  easury 
was  reduced  to  the  (X'remely  low  iigme  of  $3,500,000;  this  (act,  fiowever» 
appeiiB  to  have  caused  little  or  no  nmasiaeiis;  flrst,  because  it  is  underri  ood  to 
be  the  pnrpo.^e  of  tbe  Secretary  of  the  Tieasury  to  work  opo  i  a  lower  bai  >noe 
than  former/y  and,  next,  becaa«e  although  t!ie  weekly  sales  of  gul  i  w*.!  take  a 


396  OOMMSROIAL    OnRORICUE   AKD    RSTIXW.  ['<ft 

coneiderable  amonnt  of  gold  iDto  the  Treatarj,  and  the  eollection  of  ioeooK  taz 
in  May  will  have  the  aame  effect,  yet  other  Bectioos  stand  bo  largely  ladebted  ta 
New  Tork  that  the  receiptaof  carreocy  from  the  interior  will  more  thai  €bi 
these  movementa.  At  the  same  time  it  is  not  to  hi  concealed  that  the  biDks  are 
not  now  in  so  strong  a  position  as  at  this  period  of  last  year.  In  specie  aai 
l^al  tenders  ooabiaed,  they  have  less  by  $6,000,000  than  m  year  ago,  and 
$13,000,000  le89  than  at  the  same  time  of  1867 ,  while  their  deposits  aie 
$3,000,000  leas  than  in  1868,  $10,000,0(}0  less  taan  in  1867,  and  $25,000/)00 
leas  than  in  1866.  Under  these  circam>taooes  it  wcnld  be  anaafe  to  indaige  la 
s  logaioe  expectations  of  easa  daring  the  summer  m jntlis« 

The  active  speculation  in  Uoited  States  bonds  and  the  npward  tesdeocy  la 
price <  which  characterized  the  month  of  March,  have  been  continued  throogk 
April.  At  the  close  of  March  the  larger  portion  of  tlie  supply  oo  the  m&rket 
passed  into  the  hands  o(  foreign  bankers,  who  were  willing  to  take  them  ia 
aDticipatioo  of  a  Karopean  demand,  while  domestic  dealers  were  willing  to  sefi 
them,  under  the  supposition  that  the  stringency  in  money  would  depren  prices. 
The  event  has  proved  that  the  foreign  dealers  were  the  more  sagacious,  ioa  sradb 
aa  prices  improved  in  the  fuce  of  the  monetary  preasure  and  have  since  advaooed, 
80  that,  at  the  close  of  the  month,  prices  ranged  from  2f  to  3^  per  cent  sbofe 
the  opening  quotationa.  For  the  lust  fifteen  days  bonds  have  beeo  steadif 
going  out  to  Europe,  and  no  small  amount  of  the  shipments  have  beeo  sap^iei 
from  "  calk"  upon  domes'  ic  dealers,  who  have  had  to  meet  tha  demand  by  pst 
cba8(s  rather  than  from  stock  on  hand. 

The  Stock  Market  has  exhibited  a  very  deciJei  firmness  throughout  the  m'^oti 

The  large  in-^rease  in  the  earoings  of  Ust  mootb  have  eocooraged  a  apecaUiivi 

feeling  among  ooteide  speculilors,  and  shares  have  a  ivanced,  in  many  ioataoeeif 

in  opposition  to  the  efforts  of  ted  qaes  cootrolling  them  to  keep  them  d  vs. 

The  more  active  stocks  have  been    New    York   Central.  Bock  Island,  "Sori^ 

weslero,  and  8t.  Paul.    Erie  h-^s  been  very  weak,  aud  at  the  cloie  fell  to  16 

Within  the  past  week  Hadson  River  and  H  i  eoi  have  ^  dvanct^i  8^99  per  eesT, 

in  sympathy  with  efforts  at  Albany  to  secure  autiimiiy  to  roosolidaie  the  roadi 

with  t  e  New  Tork  Central.    The  loi  1  »<*  e-i  of  8t«»c<  at  both  boards,  dar.if 

the  week,  amount  to  1,768,0  '0  shares,  which   is   145,0  0  f^ha-res  le-s  than  for  the 

t  ame  month  of  last  year. 

Classos.  186S.  1SS9.  laerMM.  Dee. 

Bank  sbarii* %Mi  8.t07  67$ 

Railroad   '' l,Sll»).1  1,318,901  ft,8Ba 

Ooal          »• «,S0<  «,«*  .  «< 

Mining     *'  8S,6.1C  ^1«S  S,iS» 

Improv*ot"  I\tt7ft  M,tMI  BTB 

Tefejcraph*'  ...  74,»«S  «8,W)l  8J« 

Steamship**  17^*11  6I,«7  ..  ..  2«^ 

Bxpr'M&c*'  MIOS  44,«<i4  ...  6l.*e 

ToUl-Aprll l,Q19,8n     1.768,881  ^4i«« 

SUee  Jaonarjl 7*'7Aa.i44    6.816,849  ...  .       tSiv,^ 

Few  bonds  have  been  sod  by  invitMrs;  nor  hire  >he  pnreha«e4  fron  tiiat 
source  b.en  important;  ihe  oty  an  <  coaotry  basks  app'ar  u  have  b^^n  ti» 
principal  sellers  their  satt^  having  b*^a  mide  perbap-t  1  ss  wiih  a  riew  to 
reinve^tinf;^  in  the  same  claa^  of  s^curiiieit  than  in  contemplation  of  em^hyof 
their  surplus  in  lover  pri  fnl  inve  tfne<>t4— i  tendency  wh'ch  hts  bc*pa  to  p  ocefi 
for  the  Uni  two  years.  For  the  Ian  we^k  the  m  irkei  h»s  been  atn^hrtbeitet  by 
an  understanding  more  or  le  s  general  that  tn^  S  'Cretary  uf  the  Treasury  mtesdi 
oanyJDg  oa:  the  sinking  fuad  provision  by  purchasing  bonds  for  eanceilatioj. 


1K0] 


OOMMBKCIAI.    OBBORIOLI  IKD    KKVIIW. 


Cluwi.  IMS.  ISW.  Inc.  Dm. 

L.S.  bMl tlTlW.«BO    $ig,lll4,6B0      pMOSW         t 

r.S.iiot».. B.MS.SUU B,TW,80I) 

mtotjvit iOfi.B(io     j,Mi%Tiw        '.K.ccio 

Cuopuj  b'd<  ,. G10,Wt)       ^U.B,li7a         ],31B,TiB 

T«Ul-AprU «*:,Mi,9M     »)6,Wa,  »       t  »l,eMl» 

lUttJuDuji tu.witiuo    iiuwiMto     n,m,aa         

The  d&il;  clotiDg  pricei  of  the  principal  Uuternment  fecurilieti  Ht  the  Ne" 
YptIi  Stock  Kxchaage  Board  ia  the  mom b  or  Apiil,  as  reprcMoted  b;  tbe  kleet 
it.e  officiklly  report^,  are  shown  in  tbe  loIlowiDg  Btat«men[ : 


-syiBsi.— , -«'p,  (5-»uti»,) 

Coap.    Ku.  1FU.  IWI  Iks.  a 

Iisilt    Iir^  111  III  115M  liS»  lli» 

inx  itsx  ..  ..  i"ti  ii-t 

IIB  li'K  lifj*  >13«  113J( 

llB  IIS  IIBJ<  IISV  I  3K 

11SH  iiSM  iiiw  iiiiji  iia»  it»M 

itDjK   ..  .  iiHV  ii«x  ii^it  ii»>i 

lis       HEX  ll*K  ll^K  >')K  113» 

iiBU  ii<i«  i*»  ii»  11  iin;f  ia% 

lUjt  IfO  IISK  IITK  lla^i  1I3K 

iwx  iU!i  ink  ii'K  iiax 

iwiK  lis  in«  iisK  iiJjjt 

WH    IIVK  IISW  1I7K  111  lltH 

IISK    ItUJt  lti»f  U  »  II4X  IHX 

llT'i    IMN  IICM  lis  IIS  lis 

tllK    Itl  ItSJi  U1H  115  IIB 

I"K    If'X  lis  ll:«  IIS  l:s« 

111X    llIX  i*H  ll'-'A  IfX  liSX  lia 

m«    l«  1I8X  116^  i:f.X 

111«    IWM  .-.  .  ll'«  IIBS  11S« 

I17X    I«l  lIBk'  llt^X  lts«  I1& 


118K  IMK 

losx 

iiaK  iiiH 

iitV  ii>s>^ 

114  IWK 

in«  IWK 

lis  loe 


.    1«K   11  \ 

.    inX    UT)«    HIK    111K 
,    118^    lid       ItlX    1I1H 


l^^:<    IWK    lj6« 


IIS  IMU 

ii4»  inM 

llStt  106K 

lusirf 

....  ]i8« 

l!E>j  IMW 

ll&K  IWX 

1IB«  1<«X 


IIB  118  111  11B»  llt}(  lli;i  llSIf  IijS 

lis  1^4  JIIH  IID^  IIBM  lIBti  lIK^  IU8K 

IISW  "IX  1  a<i  'l^'-i  ll'K  iit'-i  ll^S  IW 

lis  itiK  in.t  imx  iu.«i  iis;<  HUM  loSK 


D*M. 

Uuua,  Am.  KKur 

sbs? 

.... 

K.1.K 

i  i  r 
si  Ji  1 

93)«     Hl^k    t-BlJ 

e-3i  B-'i;.';  »-m 

Si  Ti  SS 

it 

tIM 

i 

MX 

Th^rwlij  ,. 

.31 

.'si 

'.a 

Tlfi     BJ*l 

r^ 

;,>'^'iT » 

1 

gS?-:;:;;::::::::::::-! 

T»eid«y  ... 

Thnndif... 
Kild^jr 

wi«(  t  •) .     wm ,  ii 

gfliE:; 

lis;::::.:.::::.::-:-::! 

S!3Si!;! 

^i 

Thf  lollowinir  table  will  hm 
"'  tillbr  riilwuj  BDil  miscelhiii 
i'lcluDgeduriDi;  ibe  moothB  oi  I 


•wKs-Hmluid  »  fcie!!! 


inc  ojieniii^,  hifiiit^t.  lowest  sod  clnsiDg  pricei 
»M  -eiuriiiesi  qaoipd  Htibe  New  York  Stoct 
f.  au  I  At-rl,  leug  : 

Oi)"ii.  1 1Kb.  L>w.  ClM.  Opan.  Ulfii.  Loir.  CI 09^ 
Hi  SB  SStti  Kg  bB  Sw>f  *6  tt3ii 
m        W         Oi  (««      BU      Mi.      fli 

»«    »)(.    xs     »H     — 


398  COMIIKROIAL    CBROHIOLK   AND    BSVISW.  L^<7« 

CSiicago  A  AUon 169 

do  do    pref IMj^ 

Chicago,  Barl.  &  QaiDcy n4Ji 

do      A  NonhweM*n SiJi 

do  du  uref 9-J 

do       ARocklHlttod 188 

Columb.Cblc.&lnt.  C 46 

Cli'V  .  A  »'itti«barjf B9H 

do    AToledo I0»$jtf 

do    <ol,Mn   ftlnd 6Ss^ 

Dd.,  Luck  A  Western 117J^ 

Dabnqne  ASloaxcltv lOi 

do  CO     pref lOt 

HAr'em intH 

bttnnlbalASt  Joseph in 

do  do  pref 115 

HndsonRWer 136 

ittlnoU  Central  J4U 

JoUet  A    hicago W 

Lodz  I(^)a"d 45 

LukeShore    1(« 

Mar.  ACinclxi.,1st..^^  U 

**  XCL  ...    «•...•*•.•••        ^xt 

Mlctlpan  Cent  nil 118 

ilo       S.  AN.lnd W7 

Milwaukee  A  bc.  Paul WH 

,1.1  do  pref. 'iBJi 

Morrl*  AKss»x..... 87 

New  Haven  A  Hartford....        

New  Jersey 3W 

do         Cc'il-:»1 Ill 

Kew  York  Cenrnil  163 

do        A  S.  liav  n 

Norwich  A  Worcester lOSJI^ 

OhloAMi8«lB>ippi.... >4 

do  do        prof 76 

Pannma   —  88i) 

Pittpb.,  Ft.  W.  A  Chlca. 141 

Reading \"\r  ,?*^ 

Home.  W.  A  ORdeneVjE 11.^ 

t^tomuKton 

Toledo,  Wab.  A  Weftem 66 

do        do        doptet Ti 

WnTTcn  OTK 

Miscellaneoas— 
Amei ic.au  Coal .... 

Central 2^ 

Cnmhcrland  Coal 87 

Del.  AM  nd.  Canal  Coal liSJi 

Pennsylvania  roal 815 

oprinff  Hountaln  Coal 

Wilk-VreC  al M 

Ataiiilc  MmU 20 

PaclflcMall lOlX 

Boston  Water  i  ower 16 

C«nton 6W 

Brunswick  City JX 

Mariposa.... JJJ 

do       pref •-  ^X 

Qulck.*i'ver »X 

Felon  Trust ^ 146 

West.  Union  Telegraph 8ZX 

Express— 

Amt-rcaa  M.  Union 40X 

Adams    5** 

UnitedStatcs 55 

Merchant's  Union ..  14 

Wells,  FarRO  A  Co. 81^ 

Id  tbe  ^old  preroiuan  there  has  been  a  steady  reactioa  from  tbs  low  fi^'orucf 

last  moDib,  tbe  price  baviog  advanced  from  131  f  to  134f     The  pribdpai  aoae 

of  the  ebaDg<j  biS  been  the  adverse  coarse  of  our  fore^gu  trade,  uod  tbe  aoiki* 

pitioD  of  the  rem  ttau  cs  to  be  made  at  the  b?gifloiDg  of  May,  acaiust  tbe 

loapoDS  of  foreign  bonr'holders.    Tbe  offer  of  tbe  Se  ret^rj  of  the  Trea«a7to 

prepay  the  coupoos  of  M  ly  and  July,  with  rebate,  wa4  hat  little  availed  <At  tte 

who'.e  amoant  prepaid  being  wilhio  $3,000,000.    Oa  tbe  29th  the  Treasury  sold, 

by  pa^l  c  tender.  $1,000,000 — the  Orst  of  a  series  cf  weekly  sales,  to  be  coatiooeJ 

until  furilier  notice.    This  sale  and  the  mataring  of  $24,*  00.000  of  coin  iotnest 

to-day,  have,  however,  failed  to  check  the  upward  tendency  of  tbe  prefliJttB« 

Oaing  10  ibe  incompleteBet^  of  tl\p  data,  we  defer  our  osoal  monthly  atateoiest 

ol  the  dpecie  movement  until  next  week. 


vs» 

M«X 

HOX 

149X 

iia 

1*9 

IQX 

15«itf 

151 

• 

150 

MX 

190 

l^H 

It^H 

171 

17t 

178 

ITS 

:-3 

175 

:5^ 

81 

•  'X 

b4 

SIX 

SI 

«T 

.if^ 

88V 

9<X 

9SIX 

»-x 

91X 

9I3( 

181 

134^ 

181 

lf8 

189 

18S 

irtH 

4< 

4iH 

4«X 

41 

49 

3^X 

^ 

,?*^ 

87 

87 

WX 

94 

Six 

9tS 

107X 

IMX 

106X 

fn 

97 

«tX 

•'X 

09 

6« 

65 

w 

79 

<4X 

• 

m)4 

mji 

iisx 

114 

ita 

114^ 

lii)i 

:i5A< 

107 

lliX 

116 

116 

114X 

1.6 

itji 

101 

101 

•  «  •  ■ 

•  •  •  • 

•  •  •  • 

*•"• 

137 

184X 

li5 

185X 

ro 

115 

199 

119 

108 

117 

114^ 

lU 

114 

IM 

115 

110 

114 

1!8 

m 

1  8 

lis 

140ji 

ia5x 

18S 

14<l 

154 

IZB 

156 

141 

1  9 

189 

189 

l^X 

IW 

lt4 

MS 

96 

16 

95 

95 

95 

36 

47 

45 

47 

46 

46 

46 

45 

107ili 

105 

H«X 

97 

inrtx 

97 

Ity 

S4 

88 

28X 

»H 

tax 

tOH 

tl 

.  t^ 

.  •^' 

t*X 

OX 

BX 

8H 

sy 

118H 

117X 

118X 

llbX 

183 

118^ 

i»t 

•rK 

MX 

wx 

05X 

18X 

ft'X 

)0^ 

71 H 

«X 

71X 

78 

81 

61X 

19 

90ii 

76 

»)X 

80X 

83 

feO 

»% 

Si 

86« 

86X 

^8 

b9X 

87*6 

»% 

•  ■  •  • 

•  •  •  • 

•  •  ■  • 

900 

900 

9UU 

3(0 

t» 

IM 

19i> 

184 

136 

194 

13S 

113 

lOSX 

103X 

108X 

113 

lt» 

ni¥ 

W4X 

156X 

160 

161X 

175X 

3'9X 

13 

•  «  •  • 

*  •  •  • 

.  .  ■ 

130 

131 

1  0 

131 

lOfiiitf 

100 

io»x 

lUO 

104 

IJO 

104 

84 

88 

8iX 

83 

MX 

'«X 

nx 

71 

75 

76 

76 

T6 

T3 

;i 

ZVi 

880 

880 

83S 

8SJ 

Sd 

se 

li^V 

in 

185X 

li4X 

189 

191 

1^ 

w« 

91 

91 

91 

97X 

91 

KH 

lllH 

11 IX 

lllX 

■  •*  « 

•  •  •  • 

«  •  •• 

•  •  •  • 

■  •  •  ■ 

•     •  • 

88 

n 

81 

63 

63 

»x 

a6x 

87 

rix 

ssv 

Uk 

79 

78 

79 

TTX 

80 

'•"X 

:» 

«7X 

81X 

87X 

•  ••  • 

•  >•• 

•  •  •• 

•  •■« 

■  «  • 

•  • .. 

40 

40 

40 

« 

69 

«!X 

68 

«.^ 

«3X 

WX 

m 

87 

87 

87 

83 

85 

so 

39 

ISd 

127 

138 

13ttX 

180 

195V 

us 

8:7 

818X 

S15 

■  •  • 

•  • . 

•         • 

•  ••• 

•      •  • 

•  *  •  • 

B 

44 

44 

4t 

44 

88 

9S 

98 

•  •  •  • 

•  •  «  • 

*  ■  ■  ■ 

.... 

90 

90 

80 

98 

93 

33 

SI 

10\H 

mW 

b9X 

s-^x 

9X 

^9X 

WH' 

I.SX 

16 

16 

16 

i'lH 

1« 

)fi 

MJtf 

59 

59 

59 

6i 

69 

6x 

9K 

OX 

1»X 

»X 

9X 

9V 

U 

IPX 

13 

18X 

U 

93 

l^X 

3D 

8S 

»X 

84X 

84 

44X 

84 

41 

85X 

19X 

9* 

90 

t3X 

10 

31 

145 

145 

145 

•  •  •  « 

«  •  •  • 

•  •  •• 

•  ••« 

88X 

MX 

88X 

WX 

4SX 

89 

m 

45 

.'9X 

40X 

4CX 

48 

89X 

**% 

64 

58 

bus 

68 

bS 

6aS 

a 

66H 

54 

[6»% 

66 

63 

6« 

& 

17Ji 

15 

15 

15X 

16 

15 

i< 

88 

to 

80 

80X 

wx 

»J<i 

34 

COUUKRCIAl.    CDKOKICLR   AND    aCVIEW. 


I    ^1     S 
D.U.  S.       I 

I  o  I  3 

Tlnnii«r I  l^K  l«Jj 

'"J^r i  IS*    I"-- 


HiarMij 813IX)n« 

FriJiT diiaf""-"- 

»<iuni»...... Iffllt 

Imil^y 1*13 


..l'J14^»l|.1«}t 


:-i»i  i^r. 
■s«iwj< 

_«    (IMS 

mji  131^ 

iJHJtl' 


Triwil, 

Wed  ( 

Thnrsday. 

April... 1! 


i  II 


....    s-ii  lats   > 


K  IMK  IMif 

imMi«« 

H  I'-^i*  IMU 

u  iH'xii-aS 

H  inji  190J< 

100    10  >   luio 

1-i'H  Hi?{i"«Hi.3i3< 


I  llowiDg  lunnuk  will  sbuw  ihe  movtrnriiC  oi  coin  ttiid  uuili  <u  ut  it 
*  Tork  during  the  monlh  of  April,  18ii8  mod  I8t9  re? p,c lively  : 


JDlMakide.reii 

DoiredlhimDoraporledaonreM ,  |9,OI>J,iC0      fUl.tOa   | s,^70,iiW 

fhe  followinf;  e\hibil8  the  qaolalionti  at  Neir  Yorh  for  bankeri  (ill  dafg  bills 
oa  tbe  ptiactpal  Eurcp'iD  m  irbetg  liull;  in  tlie  month  nl  Muruli.  16S9 ! 
aoDBii  OF  POKiisn  >icH«Hei  («QDm)  it  mw  tose. 

London.  PHrlii.       Amstardam.  Bremen.    Hamburg.       Berlin 


B.ff... 


IS  fur    < 
loraoiiar.  uonn.        nx  diilcr.  7 


"i  TO  (aT»»(  . 

X  re  ®;a»{ 

K  re  ®SK  ; 

..  7-).(iJll-Ji  1 

.._        .         ._    H  -KHW-^H  ■ _       . 

-  lOTXaiWU   SXi    OGlSJf    I9K340X  TO    ftTS^  39»033!j    TOJiOllJ^ 


400 


JOURNAL  Of   BAKKINO,  CURRSNOT,  AND  yilTANCS. 


[Mf, 


JOURNAL  OF  BANKING,  CURRENCY,  AND  FINANCE. 


^^P»»N^»^^»*^^»»rf^>^»»*»»»^i^i^^^W»«^^ 


Retmms  •f  tho  New  fork,  Philadelplifai  aid  Bostoa  Banks. 
Below  we  give  the  retaros  of  the  Banks  of  the  three  cities  since  Jan.  1 : 


VBW  TOftK  CITT  BAXK  BBTUBHV, 


Date. 
JaBoary  t.... 
Jmnoary  V... 
Janoary  Itt.. 
Janaary  S^).. 
Janoary  10. 
FebruNry  n. 
February  18. 
Febranry  8>. 
Ftbrnary  k7.. 
March  0.... 
March  18.... 
Aiarch  SO. 


>«ar<h  87.... 

Ai>rll    a 

April  10  .... 
April  17 
April  94 


I  o^Dt. 
t95«,i«0,05T 

S&8  792.61)9 
.  969,888,881 
,   S64,i«4,tt  0 

963,171,^00 
.  9H6,MI>73I 
,  964,880,407 

968.49S,06« 
,  9t)l.JJ71,W7 

969,080,888 

,  368.008,809 
»iM,iK)9,6s9 
•«61,»8S,675 
957  4^0,997 
95S,184.b89 
9&7,4ft8,074 


Specie. 

$£0,78ti,199 

97.884.'«S0 

99,9r8,6»6 

98.864,107 

97.784,098 

97,MHt,^l 

8s864,»)l 

98,1  1,.  01 

9U,689,t08 

]0,4b6,H84 

17,«58,r.7l 

15.91]i,80tl 

19,0*8,791 

10,7  7,*J0 

8,79I,!VI8 

7.811,770 

8,830vtli0 


Cln  ifl  tion. 
(44.870,100 

84,844,  •5v 

34.ri0.168 

8i.9H6,0«6 

84,981,166 

^4,946,488 

84,368,461 

34,947,«il 

84,947  961 

84,«7S,88S 

84,600,446 

84,>f4;  810 

84.777.814 

81,8:6,916 

S4,60Ht860 

84,486.'ra'» 

84,0b0,6.1 


Deposits 
$U(C4flO,44ft 
187,00t<,588 
106,484,8«3 
197,101,168 
106.086.4f9 
196,60i,800 
lV9,0Tr,H» 
187,619  M6 
186,916,175 
18i,604,487 
1  9.«n,4A8 
188,604,ONO 
lt«,118,»10 
17&,895,7»f 
1^,406,60 
179,tia3.404 
177,810,060 


Date.  Loans.  Specie. 

Janaaiy4 $61,716,009  $859,488 

Janaaryll 61,649,987  544,601 

January  18 59,199,789  478,469 

Janary93 69,637,016  4118f7 

Febna'yl 69.689818  8<9,':8« 

Febraary8 68.059,716  8)7,0  >1 

Febi  n  tfy  16 69,04»,801  t04,681 

Frbr.ary99 69,416,146  2.]1,807 

Marcbl... 69.961,8&1  966.1188 

Marc    H 59,9»!,000  997,887 

March  15 61,»n,6i9  977.617 

March  99 61,818,419  »«.097 

March  90 KO.597,)00  910.644 

April  6 f0,4»!»,Hli6  1-9,0  8 

Aprtll9 60,770,l«l  181,946 

April  10 61,478,871  267,818 

April9tf 61,901,9*1  lt4,96l 


Legal  Tenders. 
$189:0,887 
IMOMOO 
18,799,409 
14,054,870 
14,S1»6,670 
13,796,695 
18,678,048 
}8.M8,607 
18.010,608 
18  95^901 
18.098,91/7 
19,766,75t 
18,091.815 
19,160,991 
19,648^867 
li,0tl,78i 
13,610,063 


BOSTOir  BAHK  BXTUSMB. 

(CmplUl  Jma.  1,  1866,  $41,000,000.) 


Date.  Loana.  Specie. 

JnniKry4 $08,498.^44  $i»,908  401 

January  11 Iu0,7i7,0  7  8,076,844 

January  18 102,906,^00  9,6'!7,6S8 

Janu  ry  96 109,960,949  9,804,7h0 

FebruHiyl 108,6W>.t6<)  9,161,984 

FebuaryS 101,849,495  9,018,908 

Februaryl6 ia3.a60»'4  1,846,694 

February  98 lU9,t5i,689  1,646.418 

Marrhl 101,800,680  1,988.086 

March  8 101.496,989  1,907,600 

Marc>il6 100.8i0,808  19.7.816 

March99 0»,658,810  1,8.^0,864 

MarrhSO. 09,670,945  087,760 

April   6 06,0t.0,':i4  869,916 

April  II 09,696,479  760.160 

ApiillO W,n.V80  690,460 

Apri^^SO 06,ya,7U  617,485 


Lees!  Tenders. 
$I9«088,889 
19.864,700 
19,099,SS7 
18,998,874 
19,(«4.996 
19,469,706 
ll,649,e56 
11,«60.790 
11,900,140 
10.0H6,979 
10,860,188 
10.49a448 
ll,64^999 
11,948.884 
ll,80tU(^0 
11,4X9,096 
19,861,897 


L.Teiid's. 

$18,806,491 
61,141.198 
69.0t7.Q6i 
6S0i9..19 
64  747  660 
6S.4t4,1S3 
59,884.059 
60,007.107 
60.883,164 
49,1«N.'«B 

4'J,680,691 

60,774,^4 
60,655.101 
48,406,839 
48,644,71S 
51,001,  88 
5^677,860 


Deposits. 

$88,191,098 
88,76&5U 
8H.6«,168 
}  9.685,469 
90,677.940 
40,050  890 
38,711,615 
87,900,908 
87,735,\05 
88,990.960 
87.67  •,689 
SO,9tksO0O 
8K,Ma,3U 
85,87\864 
86.099,133 
87,031,747 
87,487.985 


Deposits. 

$87,6a8|707 
88,099J80t 
80,717,108 
a0.65:,747 
40,910.469 
80,698,8-T 
87,750,7.8 
86,898,814 
85,*«e,466 
86,5^680 
84,061,715 
89,041.0  VT 
89,ni\4a0 
88,804.080 
M,S09,8r77 
81,957.071 
QJVi  909  909 


Ar.  ^esr^fs. 

#tfft,:OL^ 

701,719,051 

07S,7i«j6ll 

071,981541 

eia,8o*,»6 
0';osr 


".O.OiLjOM 

&a,Ai«,i«i 
m,i<oj& 
Oi»,  njMi 
*zao,7ir^09i 
•;07,9rt:r 


81KQ5N40S 
T79,8«ft,9»4 


tlO.&08,7]9 


10.5M60a 
10JIISJ9I4 

io.5Bo.an 

10.600^50 

lO,?f 

10.4- 

10,438,601 

10,iaMB8 

3a48eLi«i 

lQ.461,4ia 
10,47t,499 

10.609,106 
10.0iO,4S5 
10.6;M,407 


CircvlattoB. 
$j6,10lA45 


IMXi^OiT 
15,^ -0.007 


IMTUTM 


9ftktt».9»l 


«"^  «» ■^ 


MERCHANTS'    MAGAZINE 


COMMERCIAL     REVIEW 


JUNE,     1809. 


THB  GOTBUraRNT  PDKGSiSSS  OF  BORBS. 
The  moBt  promiaeiit  feature  of  tbe  administra^oD  of  the  flnanofls 
QDiJer  Mr.  Bontwel),  h  the  inauguration  or  the  puTcbaae  of  GoTenimeDt 
LecreUry  haa  determined,  apparently  as 
jg  the  proceeds  of  the  Treasury  sales 
Flve-Tnenty  obligations.  We  preBQine 
Itere  will  be  a  surplus  of  revenue,  beyond 
ent  to  enable  him  to  undertake  this 
it  be  is  competent,  firom  his  position,  to 
[tent  of  his  surplus  means.  Under  the 
d  expenditure,  it  may  appear,  to  ordinary 
rtainty  as  to  bow  tbe  revennea  and  dia* 
'ill  square  vith  each  other ;  tlie  public 
tbe  Secretary^  jadgment  on  tbe  matter, 
MrUunty  nnosualty  large,  and  will  leare 


402  THK   OOYKRmOEKT    PURCHASIS   Or  B0VD8.  [•^I^> 

a  heavy  surplus  of  coin  for  oonversioo  into  currency.  It  is  not  imjyrobsble 
that  the  gold  revenue  for  the  current  year  may  be  close  upon  $175,000,- 
000,  or  fully  $50,000,000  in  excess  of  the  coin  payment  equal  to  eay 
$67,500,000  currency.  What  proportion  of  this  will  be  required  to  oom- 
pensate  for  the  deficiency  of  currency  income,  and  what  balance  msj  be 
led  for  the  purchase  of  bonds,  remains  to  be  seen.  We  presame, 
however,  that  Mr.  Boutwell  will  promptly  suspend  bis  purchases  of 
securities  when  he  finds  his  funds  are  required  for  other  purposes;  and 
it  is  perhaps  too  much  to  expect  that  the  selling  of  gold  and  the  buying 
of  bonds  will  be  continued  regularly  the  year  round. 

In  considering  then  the  policy  of  the  present  purchases  of  bonds,  it 
should  be  remembered  that  the  Secretary  bason  hand  a  surplus  of  revenue. 
The  question  is  not  whether  the  taxes  should  be  reduced,  or  should  be 
continued  on  the  present  scale  for  the  purpose  of  paying  ofif  the  Debt; 
but,  circumstanced  as  the  Secretary  now  is,  with  a  large  surplus  of  fends, 
and  with  authority  to  reduce  the  Debt,  we  do  not  see  how  he  could  do 
otherwise  than  employ  his  surplus  in  some  manner  calculated  to  improve 
the  public  credit  and  economize  the  expenditures. 

The  purchase  of  bonds  is  certainly   calculated  to  secure  both  these 
objects.    The  spectacle  of  a  country  reducing  one  per  cent  annually  of  its 
Debt  is  something  so  uncommon  in  the  financial  history  of  natiooa,  as  to 
have  a  very  direct  tendency  to  enhance  its  credit.    The  taking  in  <^  bonds 
aaves  to  the  Government  a  high  rate  of  interest  for  a  succession  of  years; 
which,  as    an  economy  of  expenses,  it  redounds  to  the    public  credit 
There  is  room,  however,  for  diversity  of  opinion  as  to  whether  the  Sec- 
retary best  employs  his  funds  and  secures  the  foregoing  objects,  by  the 
purchase  of  Five-Twenties.    It  may  be  truly  urged  in  favor  of  the  selee. 
tion  of  the  Five-Twenty  bonds  that,'in  buying  them,  he  makes  the  largest 
economy  of  interest;  and  that,  by  making  them  comparatively  scarce  and 
enhancing  the  pricCi  he  prepares  the  way  for  the  ultimate  conversion  of 
this  class  of  securities  into  obligations  bearing  a  lower  rate  of  interest; 
and  this  argument  is  the  stronger  because  it  involves,  not  only  the  largest 
present  saving  of  interest,  but  also  an    improvement  of  the  prospect  of 
an  ultimate  economy  of  interest  upon  nearly  the  whole  of  the  gold-bearing 
Debt.    So   far,  the  Secretary's  policy  is  supported  by  weighty  and  states- 
manlike considerations. 

It  must,  however,  be  allowed  that  there  are  certain  features  in  the 
present  position  of  the  finances  which  go  far  toward  counteracting  these 
wholeaome  bearings  of  the  Secretary's  course.  There  are  now  out  tand 
ing  $410,000,000  of  demand  obligations;  upon  seven  eights  of  which  pay- 
ment is  still  suspended,  while  the  remainder,  consisting  of  Three  per 
•  cent  Certificates  are  liable  to   payment  on  presentation.    At  home,  we 


I860]  THE   OOTSRNMXVT  PVRCHABK8   OV   BOlTDB.  403 

iiAve  become  so  accustomed  to  financial  derangements  as  to  be  compara- 
tively insensible  to  the  effect  of  this  suspension,  upon  our  currency  obliga. 
lior.B.  Iq  Europe,  however,  our  credit  is  regulated  to  a  very  great  extent 
by  this  con^deration  ;  and  probably  little  benefit  will  result  in  foreign 
rrarketfl  from  our  thus  buying  up  our  long  obligations  while  nothing  is 
being  done  to  provide  for  the  payment  of  our  den^and  indebtedness.  This 
MfTerence  in  the  estimate  of  Mr.  Boutwell's  policy  at  home  and  abroad 
v^ill,  in  part,  account  for  the  fact  that,  since  its  adoption,  Five-Twenties 
have  advanced  6  per  cent  at  New  York,  while  they  have  actually  dec'ined 
2  per  cent  in  Europe.  Of  course,  however,  the  fall  in  the  foreign  marketg 
mjst  he  partly  attributed  to  the  action  of  the  Bank  of  England,  designed 
to  di:<coDrage  speculation  in  our  securities.  Unfortunately,  this  discre- 
pancy  in  prills  has  induced  a  large  advance  in  the  gold  premium ; 
which  became  necessary  to  equalize  the  gold  value  of  bonds  at  both  points ; ' 
ir.LiJentally,  therefore,  we  have  a  very  inconvenient  and  demoralizing 
result  from  the  earlier  purchases  of  bonds. 

This  condition  of  affairs  suggests  the  inquiry,  whether   it  would  not 

U  wise   to  suspend  the    purchases  for  a   time.    Beside^,  there  are  im- 

"irtant  reasons  claiming  the  derotion  of  at  least  a  portion  of  the  Treasury 

^'j-'pKis  to  the  retiring  of  the  3  per  cent  Certificates.    These  ob'i^ations  are 

i'i  the  nature  of  a  temporary  loan.    They  were  issued  less  for  the  conve- 

•i^rice  of  the  Treasury  than  the  banks,  which  suffered  embarrassment  from 

'!:e  «^udden  deprival  of  the  Compound  legal -tenders,  and  desired  to  have  a 

*rn  porary  substitute  which  might  afterward  be  gradually  withdrawn.     It 

-^  not  sapposable  that  this  form  of  legal-tender  reserve  is  to  be  perma- 

'^rit;  and  there  seems  to  be  no  special  reason  why  its  gradual  retirement 

'hr.uld  be  undertaken  hereafter  rather  than  now.    There  are  $53,240,000 

of  these  obligations  outstanding,  and  principally  in  the  hands  of  the  banks, 

^'1:0  can  present  them  in  any  amount  for   payment  on  demand.      This 

'':^vosQFe  of  the  Treasury  balance  to  a  sudden  drain  would  be  a  matter 

f  little  importance  were  the  balance  kept,  as  formerly,  at  from  $25  000,000 

•0^40,000,000;  but  it  is  a  matter  of  settled  policy  with  Mr.  Bout  well 

to  keep  his  currency  balance  at  about  one-third  the  former  high  figures,' 

^^(i,  as  a  collateral  policy,  it  seems  necessary  that  he  should  guard  himself 

'L'^iinst  any  heavy  or  sudden  demand  upon  his  resources.    Desirable  as  the 

Ct:rii6cate8  may  be  to  the  banks,  as  a  reserve,  yet  in  periods  of  severe 

r.0Qetary  pressure  they  are  apt  to  present  them  for  redemption   in  large 

'Qounts.    During  October  last  $7,000,000  were  tendered  for  redemption, 

^''l  10   December  $2,725,000;    and   with  a  currency  balance  in  the 

Treasury  ranging,  as  of  late,  between   $5,000,000   and  $10,000,000,  it 

'^tppeara  necessary  either  that  the  Secretary  should  keep  a  larger  currency 

reserve  or  that  he  should  lessen  hid  liability  to  demands  from  this  source. 


4M  TBS  eovxBxioan  pubobasis  or  bosim.  [/«m» 

It  k  true  that  Mr.  Boutwell  is  provided,  uoder  lectioa  3  of  the  Aet  of 
July  11,  1862,  with  a  merre  of  $50,000,000  of  United  States  Notes, 
which coald be  made  avulable  for  paying  off  the  Certificates;  but,  intko 
iaterest  of  oonaervative  finance,  it  is  high  time  this  reserye  were  withdrsTn, 
and  the  Treasury  so  managed  as  to  obviate  the  necessity  of  ever  touch- 
ing  a  resource  provided  for  a  m«ich  more  critical  condition  of  affiurs  thsi 
now  exists.    The  retiring  of  these  obligations,  up  to  a  certain  limit,  would 
involve  no  contraction  of  the  currency ;  for  the  redaction  of  the  cnrreocy 
in  the  hands  of  the  Tressury  has  thrown  a  correspondingly  increswd 
amount  of  money  into  general  circulation ;  and  the  retirement  of  Certifi- 
cates to  an  extent  corresponding  to  that  reduction  could  therefore  involre 
DO  disturbance  of  the  equilibrium  of  the  money  market.    Nor,  again,  is 
it  to  be  overlooked  that,  so  far  as  the  Secretary  might  diminish  the  amount 
of  these  temporary  obligations,  he  would  remove  one  important  obstsde  to 
the  resumption  of  specie  payments ;  which  would  be  an   important  step 
toward  the  improvement  of  the  public  credit     It  is  true,  the  Goven- 
nient  has  not  the  option  of  calling  in  these  Certificates  at  its  discretion; 
the  Secretary  has,  however,  the  same  right  to  purchase  them  that  he  has 
to  buy  any  other  obligation;  for  section  1  of  the  Act  of  July,  1803, pro- 
vides that  the  Secretary  of  the  Treasury  **  may  purcAaM,  at  rates  net 
exceeding  that  of  the  current  market,  and  cost  of  purchase  not  exceeding 
i  of  one  per  cent,    any    bonds  or  cerHfieaUi  of  debt  of  the  United 
Slates  as  he  may  deem  advisable." 

In  some  quarters,  the  authority  of  the  Secretary  to  make  purchases  of 
bonds  has  been  called  in  question ;  but,  as  it  appears  to  us,  upon  veij 
slender  grounds.  TheSecietary  has  a  double  authorization  for  hia  acdos; 
first,  under  section  5  of  the  Aci  of  Feb.  25th,  1862,  which  requires  that 
the  income  from  customs  shall  be  devoted  primarily  to  the  payment  of 
the  coin  interest  upon  the  Debt,  and  next  ^to  the  purchase  or  payment  of 
1  per  centum  of  the  entire  Debt  of  the  United  States,  to  be  made  within 
each  fiscal  year;''  and,  second,  under  the  first  section  of  the  Act  of  Jolj 
11th,  1862,  above  quoted.  The  Sinking  Fund  provision  of  the  former  of 
these  acta  asust  be  regarded  as  mandatory. 

So  long  as  the  management  of  the  finances  was  embarrased  by  con- 
stantly maturing  short  obligations,  or  was  attended  with  an  increaie 
of  the  Debt,  the  fulfilment  of  this  law  might  perhaps  be  regarded  as  mom 
punctilious  than  prudent;  but  now  that  the  Debt  is  in  a  oomparativeij 
consolidated  condition,  there  is  no  longer  any  valid  excuse  for  negledinf 
the  requiremydnts  of  the  Sinking  Fund.  There  may  be  differences  of  opin- 
ion as  to  the  principle  of  a  sinking  fund ;  and  it  may  be  regarded  as  s 
noBstake  thai  the  management  of  the  financea  has  been  encamberod  by  suck 
a  provision  }  hut  arguments  based  upon  sudi  censiderations  can  he  of  no 


1869]  THX  ALABAMA  aUMTION  HERS  AND   DT  BNOLAin).  406 

force  against  Mr.  Boutweirs  carrying  out  this  law.  While  the  law  exists, 
it  mast  be  enforced.  It  is,  however,  sufi^aested  that  the  terms  of  the 
Public  Credit  Bill,  passed  last  session,  yirtuallj  hold  the  Sinking  Fund 
provision  in  abeyance,  bo  long  as  the  suspension  of  specie  payments  con- 
tinaes.  This  we  take  to  be  a  total  roisoonception.  The  chief,  indeed  sole, 
object  of  that  bill  was  to  assure  the  public  creditors,  and  by  so  doing, 
to  facilitate  the  ultimate  reduction  of  the  interest  upon  the  Debt.  The  biU, 
therefore,  requires  that  the  Government  shaH  not  undertake  the  redemp- 
tion of  any  of  its  bonds  before  maturity,  unless  it  shall  have  resumed  the 
payment  of  United  States  Notes  in  gold.  This  stipulation  was  desisrned 
not  to  prevent  any  reduction  of  the  Debt  previous  to  resumption,  but  to 
give  donble  aseuranoe  of  the  payment  of  Five-Twenties  in  coin,  by  deter- 
mining that  there  shall  be  no  redemption  of  them  until  coin  has  again 
become  the  comma  ocurrency.  How,  then,  can  a  promise  not  to  pay 
the  bonds,  otherwise  than  in  coin,  be  construed  into  an  intention  not  to 
fulfill  a  previous  engagement  to  ^pure?iase*^  them  in  the  open  market f 
Had  the  Public  Credit  Bill  been  designed  to  suipersede  the  Sinking  Fund, 
its  framers  could  hardly  have  failed  to  include  a  repealing  clause ;  but,  so 
far  from  this,  the  spirit  and  object  of  both  laws  is  the  same,  while  there 
is  not  a  word  in  the  bill  to  prohibit  the  purchase  of  bonds.  The  Public 
Credit  bill  engages  that  there  shall  be  no  compulsory  payment  of  the  bonds 
in  a  depreciated  currency;  the  Sinking  Fund  law  authorizes  the  Secretary 
to  accept  a  voluntary  surrender  of  the  bonds,  upon  terms  satisfactory  to 
both  parties ;  in  what  sense  can  the  two  laws  be  considered  as  opposed, 
or  ss  nullifying  each  other  ? 

THB  AliBlHl  qUBSTION  HERB  AND  IN  ENGIAND. 

It  is  reported  that  it  was  a  singular  letter  of  Professor  Goldwin  Smith, 
to  an  English  journal,  which  gave  the  first  impulse  to  the  downward 
movement  in  United  States  securities  abroad  last  week,  and  the  same 
letter  has  evidently  given  rise  to  much  of  the  excitement  which  appears 
in  the  English  journals.  We  fear  Mr.  Smith  was  the  victim  of  some 
Yankee's  practical  jokes,  for  certainly  when  he  writes  that  the  wrath  of 
our  people  makes  it  inexpedient  for  Englishmen  to  emigrate  to  this 
country,  he  may  alarm  the  English,  but  he  only  makes  people  here  laugh. 

If  an  Englishman  were  to  inquire  here,  diligently,  among  all  classes 
of  the  community  in  town  and  country,  as  to  the  state  of  feeling  on  the 
Alabama  question,  he  would  discover  that,  the  treaty  having  been 
rejected,  there  is  absolutely  no  feeling  about  it.  There  is  no  doubt 
tbat  Mr.  Reverdy  Johnson's  treaty  was  distasteful  to  the  American 
people;  they  were  not  willing  to  submit  to  arbitration,  in  the  manner 
they  understood  that  treaty  to  propose,  the  question  whether  we  hnd  sut 


406  TBV   ALABAMA   QUS8TI0H  HXftK  AKD   IN   XVOLAND.  [•^Wf 

fered  wrong  at  the  hands  of  Great  Britain  during  the  late  war.  Tbit 
question  thej  believe  is  not  open  to  argument  Nor  were  they  content 
with  an  arrangement  which  lumped  the  Alabama  claims  with  theclsimi, 
well  or  ill-foundedy  of  British  blockade  runners  and  other  yermin  of  thtt 
kind. 

But  the  treaty  being  rejected,  they  would  have  forgotten  the  questioe 
before  now  had  not  Mr,  Sumner's  speech  created  such  intense,  and  to  « 
here  amusing  excitement  in  England.  As  to  the  Sumner  speech,  we 
doubt  if  one  voter  in  fifty  thousand  has  read  it.  It  was  delivered  in 
secret  session  of  the  Senate;  it  was  not  printed  until  after  its objectr— 
the  rejection  of  the  treaty — wa^  accomplished ;  it  was  very  long,  and 
our  people  do  not  read  long  speeches. 

Those  who  did  read  it  regarded  it,  so  far  as  we  have  heard,  chiefly  ss  a 
curiosity.  Mr.  Sumner  has  long  beeu  known  here  as  the  strong  frie&d 
of  England  and  Englishmen.  It  is  pretty  generally  understood  that  he 
knows  more  Englbh  public  men  than  any  other  of  our  politicians;  that 
he  keeps  up  a  pretty  lively  correspondence  with  such  men ;  and  it  is 
believed  that  he  is  especially  averse  to  any  trouble  between  England  sod 
this  country.  People  who  read  his  speech  were  therefore  amassed  to  fiod 
him  presenting  so  strong  a  case  against  England ;  if  he  had  made  a 
speech  for  the  treaty  no  one  would  have  been  surprised. 

But  an  enquiring  Englishman  would  seek  in  vain  here  for  any  one  who 
adopts  Mr.  Sumner's  speech  as  a  basis  of  settlement.  He  would  fiod 
plenty  of  people  who  relish  the  speech  as  a  rather  good  joke  of  the  Sena* 
tor's ;  and  a  good  many  more  who  are  vexed  that  he  should  have  mud- 
dled the  matter,  by  a  pretence  of  *'  constructive  damages." 

And  if  the  Englishman  enquired  further,  he  would  find  it  to  be  the 
very  general,  and,  indeed,  almost  universal  opinion  of  our  people,  that 
we  need  not  trouble  ourselves  about  the  Alabama  claims;  that  the  pre- 
cedent set  by  the  British  Government  during  our  late  war  is  so  embar- 
rassing now  to  Great  Britain  that  she  can  aflford  to  pay  any  reasooahle 
bill  of  damages  rather  than  remain  open  to  such  a  retort  as  we  couM 
and  undoubtedly  would'  make  if  she  should  go  to  war  wich  any  other 
nation;  and  that,  England  being  thus  caught  in  her  own  trap,  we  may  9s 
well  let  her  get  out  of  it  as  best  she  can.  **  If  the  English  want  to  seule 
the  Alabama  claims  let  them  send  over  a  minister,  with  power  to  do 
so.  Why  should  we  be  running  over  there  with  our  hats  off  an  J  our 
little  bill  in  our  hands  ?  We  are  not  pinched  ;"  that  is  what  the  average 
American  says.  That  dofs  not  mean  war,  as  the  English  journals  are 
apparently  trying  to  persuade  their  readers;  it  means  that  Brother 
Jonathan  sees  his  cousin  John  Bull  in  what  he  would  call  an  **ugiy 
fix,"  and  he  enjoys  Mr.  Bull's  embarrassment,  and  does  not  mean  to 
help  him  out  of  it. 


1869]  THS  UHITSD   STATBfl   AND   OKEkT  BBITAIK.  407 

That  IB  the  whole  of  the  AUbama  question  on  this  Bide.  Nobody 
here  expects  a  war  with  England,  not  only  that,  nobody  here  wants  a 
war  with  England ;  but  one  thing  is  very  certain, — if  England  gets  into 
a  war  with  another  country  before  she  settles  the  question,  not  all  the 
proclamations  which  the  President  could  issue,  nor  all  the  navy  to  back 
them,  could  prevent  the  fitting  out  here  of  privateers,  to  retort  upon 
the  commerce  of  Great  Britain  what  she  suffered  her  ships  and  seamen  to 
inflict  upon  ours. 

As  to  the  terms  of  settlement,  it  would  be  well  for  English  statesmen 
to  remember  that  the  United  States  are  committed,  by  ever^  tradition  and 
precedent  to  any  plan  which  will  totally  abolish,  not  merely  privateering, 
but  also  the  capture  of  private  property  at  sea  by  armed  vessels  of  any 
kind.  From  the  days  of  Franklin  to  this  time,  we  have  been  ready  at  all 
times  to  Bgree  with  all  the  great  nations  to  make  private  property  sacred 
OQ  the  high  seas.  Oar  envoys  made  that  proposition  at  the  last  Paris 
Conference  upon  international  maritime  regulations,  and  it  was  rejected. 
We  do  not  doubt  that  our  government  would  agree  to  such  a  law  now  > 
bat,  of  coarse,  we  should  expect  that  England,  making  such  an  agree- 
ment, would  acknowledge  that  in  the  late  war  she  wronged  and  o*jtraged 
U9,  and  pay  our  shipowners  for  the  losses  which  her  ill-conduct  inflicted 
upon  them. 


^mm90^^^i0^0^^^^^^m^^^^^^0^0^0^^^0*^^0^^t^^^*0f^ 


TBS  nXITED  STATES  AND  GREAT  BRITAIN. 

THSIR  POLinOAL  AND   COIUIBBCLIL  KELATIOVB. 

In  the  month  of  March,  1868,  the  committee  of  the  Cobden  Club,  of 
London,  resolyed  that  a  gold  medal  should  be  annually  presented  bj 
tbe  Club  to  the  author  of  the  best  essay  on  some  important  question 
vith  which  the  late  Richard  Cobden,  M.  P.,  had  been  identified  during 
his  life.    The  subject  first  chosen  was,  "  On  the  best  way  of  developin§^ 
improved  political  and  commercial  relations  between  Oreat  Britain  and 
t^  United  States  of  America/*    The  following  essay,  written  by  Bev. 
Joshua  Leavitt,  D.  D.,  of  this  city,  is  that  to  which  the  prize  for  1868 
has  been  awarded.    It  is  an  able  and  clear  presentation  of  some  of  the 
general  principles  in  which  political  economists  of  the  day  are  agreed ; 
&nd  although  many  will  take  exception  to  some  of  the  details  of  argu- 
ment snd  illustration,  the  general  plan  by  which  the  writer   proposes  to 
improve  the  relations  existing  between  the  two  leading  nations  of  the 
vorld,  will  be  heartily  approved  by  those  most  familiar  with  the  subject. 
Ve  publish  the  essay  in  full,  and  commend  it  to  the  careful  perusal  of 
our  readers. 


406 


THX   ALABXMA   QUESTION  HXftX  AKD  Ut    BUOLABD. 


fered  wrong  at  the  handa  of  Great  Britain  during  tliei^     ^ 


tr 


question  thej  believe  is  not  open  to  argument    Nor  ^'  ^      ^ 
with  an  arrangement  which  lumped  the  Alabama  c\9^  %  ^     ^ 
well  or  ill-foundedy  of  British  blockade  runners  ai^  %    ^% 
kind.  .-,  %\\ 

But  the  treaty  being  rejected,  they  would  \  %-  %^'  < 
before  now  bad  not  Mr.  Sumner's  speech  ce^  |i  ^   tt  \ 
here  amusing  excitement  in  England.    A  ^  ^  ^<\^  ^ 


doubt  if  one  voter  in  fifty  thousand  hag 


fy 


%%\f 


i 


.«ofl 


^^or  but 

.  oefore  us  by  lookisg  ^ 

..inilies.   We  wilUuppoaelhmi 

indent  of  each  other,  and  tbecelbit- 


secret  session  of  the  Senate;   it  was 

the  rejection  of  the  treaty — wa^  *?  I  ^ 

our  people  do  not  read  long  speechf-l.  %.  #^ 

Those  who  did  read  it  regarde^^  W  ^ 
curiosity.    Mr.  Sumner  has  lonr  ^  \%  \v 
of  England  and  Eoglishmen.  I  i  |  \  \  % 
knows  more  English   public  i  4  \  \  L 
be  keeps  up  a  pretty  lively  f  1  ^ 
believed  that  he  is  espedf»  \  t\  \ 
this  country.    People  ^'  4^a  ^'\  ^ 
him  presenting  so  stv  1^1  ^  ^* 
speech  for  the  treaty^  i  ^  4  \  ' 

But  an  enquiring  1 1  4  > 
adopts  Mr.  Sum    wJ^ 

plenty  of  peopl      ^  ^*  owth,  but  intelligent,  ambitious  and  enU^ 

tor*e ;  and  a  gf  .a  and  compact  domain,  of  vast  resources,  ^' 

died  the  mat'  .nat  oonstitutes  true  worth  and  dignity ;  the  otbeo' 

And  if  t*         ,  domain,  but  circumscribed  in  a  homestead,  hiTi^- 
very  gene-       ^tiona  of  wealth,  and  jennobled  with  the  highest  tittoj 
we  need     j-ough  a  history  of  a  thousand  years.    In  what  wsy  are  thi 
cedent    ^endly  relations  to  be  developed  and  preserved  between  W 
rassin  jmilies  1    We  shall  have  to  provide  against  the  influence  of  mi^ J 
l>ill  *  rivalries,  the  intrigues  of  mutmal  enemies,  and  the  errors  in 
an  J^  inseparable  from  poor  human  nature.    The  suooeas  of  our  eip^ 
^  ^nt  will  depend  upon  the  full  and  constant  recognition  of  two  ftc^' 
0^  that  the  families  are  wholly  distinct— that  they  are  two,  snd  iMl: 
^e ;  and  secondly,  that  for  all  all  the  purposes  of  ihis  inquiry  they  ««•' 
to  be  regarded  as  on  equal  ground.    No  assumptions  of  superiontj 
the  one,  no  admissions  of  inferiority  in  the  other,  are  allowably  heeta9 
by  the  suppositions  each  is  as  independent  as  the  other ;  snd  esofi  id  * 
voluntary  relations  is  subject  only  to  its  own  will.    TntAmJi 
course,  the  lead  will  be  taken  by  the  older  family  as  to  the  msnaff 
form  of  mutual  intercourse. 


vi 


1869]  TBI  UNITIO  STATES   AND   ORIAT  BRITAtK.  409 

Comity  coosiats  in  mutual  concession,  and  concession  comes  with 
grace  from  those  who  have  in  some  sense  the  advantage.  Advances 
which  would  be  courtesy  in  one,  would  be  servility  in  the  other.  The 
tenna  of  intercourse,  the  degree  of  familiarity,  the  frequency  and  inti- 
macy of  visits,  the  multiplication  of  common  pursuits  and  interpsts,  tha 
line  between  familiarity  and  reserve,  would  be  regulated  by  the  wishes 
of  the  older  family.  Many  things  can  be  accepted  when  given,  which 
we  cannot  be  asked  for  without  a  loss  of  self  respect.  And  it  is  only  by 
the  happy  union  of  mutual  esteem  with  unwounded  self  esteem  that 
mtercourae  between  equals  becomes  productive  of  lasting  friendship. 
Wisdom  and  self  control  are  required  as  well  to  refrain  from  taking,  as 
to  avoid  giving,  offence.  Only  intentional  wrong  ought  to  be  resented, 
and  then  with  seriousness  only  corresponding  to  the  evident  malignity 
of  the  intention.  A  manly  and  sincere  spirit  will  dismiss  a  thousand 
trifling  incidents  with,  '*  What  is  that  between  me  and  thee  V^ 

The  chief  interests  of  a  family  in  which  the  family  life  consists,  are 
its  own,  and  by  the  instinct  of  self  preservation  are  devolved  upon  its 
own  care  for  their  preservation ;  and  nothing  pertaining  thereto  which  is 
not  plainly  unjust,  ought  to  be  taken  in  an  offensive  sense. 

If  I  strengthen  the  fences  around  my  own  fields,  it  is  not  for  my 
neighbor  to  inquire  whether  it  is  to  keep  my  cattle  from  spoiling  his 
crops,  or  to  keep  his  cattle  from  devouring  my  harvest.  There  are  but 
few  caser,  even  between  the  nearest  relations,  where  good  neighborhood 
is  not  best  perpetuated  by  the  habit  of  interchanging  visits  through  the 
stieet  door,  and  with  the  forms  of  ordinary  politeness,  rather  than  by 
*  running  in  "  through  a  postern  gate  across  the  garden. 

The  frequent  and  easy  interchange  of  ordinary  civilities,  as  well  as 
positive  acta  of  kindness,  should  have  every  facility  on  both  sides,  and 
jet  never  be  made  obtrusive  or  burdensome.  There  is  no  obligation, 
even  of  friendship,  requiring  one  family  to  adopt  the  manners  or  copy 
the  forms  of  anoUier,  in  things  in  either  small  or  great.  It  is  essential 
to  the  mutuality  of  courtesy  that  its  forms  be  spontaneous  and  free. 

Short  settlements  make  long  friendships.  The  frequent  balancing  of 
ucoonta  in  business  is  a  sure  preventive  of  incurable  alienations.  And 
in  cases  of  actual  misunderstanding,  all  the  manuals  of  good  manners 
ever  written  contain  nothing  so  complete  as  the  simple  rule  of  Christian 
ethics— <<  If  thy  brother  trespass  against  thee,  go  and  tell  him  his  fault 
between  thee  and  him  alone.'' 

Personal  and  prompt  explanations  between  the  parties,  without  any 
communication  with  others,  would  settle  the  greater  part  of  the  obstinate 
^oarrela  whidi  disgrace  civili2ed  society. 
I^e  frequency  and  familiarity  of  intercourse  between  families  for 


410  THB   UHITCD  BTATB8  AND   OREAT  BRITAUr.  [i^«U, 

business  or  friendship  can  be  regulated  onlj  by  a  judidons  regard  to 
the  condition  of  both,  and  can  neither  be  exacted  nor  restricted  at  the 
mere  pleasure  of  one. 

Yet  the  increase  of  friendly  relations  depends  upon  the  fireedom  and 
familiarity  of  mutual  intercourse,  and  the  constant  interchange  of  officei 
of  kindness,  within  the  limits  of  common  sense  and  sincere  good  wilL 

BOW   THB   BBLATIONS   BBTWBBV   THB   TWO    BATI01I8   MAT   BB  mPBOYBB. 

Two  families  thus  living  as  neighbors  and  friends  through  a  course  of 
years,  could  not  but  grow  more  alike  in  many  things,  while  some  peca. 
liar  characteristics  of  each  might  appear  more  marked  and  distiDct 
As,  in  mathematical  problems,  the  asymptote  is  described  as  a  line 
which  "  always  approaches  without  ever  meeting  its  cnrTe,"  in  like 
manner  two  families,  or  two  persons,  in  process  of  the  highest  culture 
under  the  influence  af  the  firmest  friendship,  would  continually  assimi 
late  to  each  other,  without  ever  becoming  identical.  It  is  not  necessirj 
to  point  the  application  to  the  case  of  these  two  distinct  and  kindred 
nationa.  The  parable  presents  the  outline  of  that  free  and  volunurj 
intercourse  of  courtesy  and  kind  offices,  by  which  alone  **  improved 
commercial  and  political  relations"  between  them  would  grow  and  de. 
velop  themselves.  Such  causes  produce  their  effects,  independentlj 
alike  of  formal  compacts  and  of  governmental  regulations,  but  in  a  way 
to  give  shape  and  direction  both  to  treaties  and  laws.  Nations  An  sach 
do  not  visit  each  other.  Their  mutual  intercourse  and  relations  are 
maintained  through  the  personal  visits  of  individuals,  the  interchanges 
of  thought  by  means  of  the  posl  office  and  the  press,  the  operatio«»  of 
diplomacy,  and  the  exchange  of  commodities  in  trade.  Leaving  emi- 
gration out  of  the  case,  it  is  supposed  that  one  hundred  Americans  vist 
England,  where  one  Englishman  visits  America,  «ther  for  purposes  of 
trade  or  for  pleasure  and  improvement. 

The  reasons  tor  this  disparity  are  too  many  to  be  recounted,  and  sre 
almost  as  various  as  the  inclinations  of  individuals.  The  great  increise 
of  such  intercourse  must  be  a  vital  element  in  the  'improved  politial 
and  commercial  relations  "  of  the  future. 

Those  who  have  the  most  to  learn,  and  those  who  are  the  most  eager 
to  see  and  know,  will  be  the  most  eager  to  go ;  while  those  who  famish 
the  most  to  be  seen,  or  who  take  most  pains  to  entertain  and  gratify 
strangers,  will  naturally  attract  the  greatest  number  of  visitors.  Those 
who  go  to  see,  and  to  learn,  and  to  enjoy,  will  be  the  best  welcomed  aod 
most  gratified ;  while  those  who  go  to  criticise,  to  find  fault,  to  scandal- 
ize, or  to  gratify  a  sour  and  selfish  egotism,  will  see  all  things  withjaoo' 
diced  eyes.    Either  way,  a  large  part  of  the  mutual  knowledge  and 


Tu  re 

SIERCHANTS'    MAGAZINE 

Aam- 

COMMERCIAL      REVIEW 


JUNE,     1S6  9. 


THB  GOTSMIBHT  PIfllCHASBS  it  BONOS. 
The  most  prominent  fwtare  of  the  adminiBtraUoa   of   the  finraeei 
>r  the  purohaae  of  Goveramoit 
y  hu  determined,  apparent)/  as 

proceeds  of  the  Treasarj'  sales 
rentj  obligatioDB.  We  presnma 
II  be  a  flurploB  of  revenue,  beyond 

enable  him  to  undertake  this 

competent,  from  his  poution,  to 
'  his  surplus  means.  Under  the 
iditure,  it  may  aopear,  to  ordinaiy 

as  to  bow  the  revenues  and  dis~ 
are  vtith  each  other ;  the  publio 
:retary*s  jad^ent  on  the  matter, 
J  nnnsQally  Urge,  and  will  leave 


412  THS  tnOTSD  OTATM   AND   GRBAT   BRtTATH.  [/ffW, 

of  classes  are  leading  features  of  social  OTganization ;  and  another  irhieb 
bases  its  national  life  upon  the  sentiment  that  all  men  are  created  eqail, 
and  have  equal  rights  in  all  that  constitutes  individual  life  and  develop- 
ment, cannot  but  grow  more  and  more  unlike  in  many  things,  in  vluch 
neither  could  become  lilce  the  other  but  by  a  forced  imitation,  alike 
unnatural  and  prejudicial.  The  degree  both  of  likeness  and  unlik^wH 
which  the  future  development  of  amicable  relations  is  to  produce,  is  not 
a  matter  of  calculation. 

The  whole  remaining  problem  is  bound  up  in  one  word — Commerce; 
the  interchange  of  thought  and  knowledge  through  the  press  and  tke 
post,  and  the  interchange  of  commodities  by  trade.  And  oommerM  is 
governed,  as  to  its  extent,  mainly  by  price.  So  that  whatever  enlianoes 
the  cost  of  the  interchange,  obstructs  its  flow  and  lessons  its  volume, 
and  to  the  same  degree  diminishes  its  benefits. 

To  obstruct  the  free  flow  of  knowledge  from  country  to  countrj  in- 
tentionally, through  fear  of  social  or  political  danger  from  the  l&i^ger 
accessions  of  knowledge,  is  a  barbarism  no  longer  to  be  apprehended. 

In  a  popular  government,  such  as  each  country  enjoys,  intelligence  is 
universally  recognised  as  the  safeguard  of  liberty.  Everything  vhicfa 
cheapens  the  cost  of  paper  and  books  and  newspapers,  favors  the  difio- 
sion  of  knowledge,  and  everything  that  enhances  their  cost  is  to  be 
looked  upon  as  an  obstruction  to  this  great  object.  To  impose  a  tax  on 
books  and  paper,  either  for  revenue  or  for  the  protection  of  materisl 
interests,  is  to  increase  the  cost  of  the  diflusion  of  knowledge,  and  tha 
to  sacrifice  the  greater  good  to  the  less. 

To  subordinate  the  intellectual  and  moral  interests  of  a  great  people 
-^of  two  peoples — to  the  needs  or  the  greeds  of  a  small  dasa,  is  so 
unstatesmanlike,  that  it  must  surely  give  way  before  an  enlightened 
public  opinion  the  moment  the  subject  is  fairly  understood.  The  inter- 
change of  thought  and  knowledge  ought  to  be  as  free  and  universal 
between  the  two  countries  as  between  two  counties  of  the  same  ooootiy. 
Let  people  weigh  the  principles  and  compare  the  ideas  of  each  until  all 
their  joint  stock  of  knowledge  and  literature  shall  become  the  oommoii 
property  of  both,  and  until  that  alone  shall  be  accepted  as  true  whi<^ 
can  stand  the  unrestricted  scrutiny  of  all.  When  the  people  of  these 
two  nations  shall  ail  read  freely  the  same  books,  and  when  the  audience 
of  both  English  and  American  authors  shall  be  the  whole  English-speak- 
ing public  throughout  the  world,  the  petty  jealousies,  the  trivial  missp* 
prehensions,  the  unhappy  distrusts,  which  dishonor  the  intelligence  of 
the  age,  will  be  known  no  more ;  and  the  two  nations  will  necessanlj 
think  alike  precisely  in  proportion  as  they  think  justly. 


1869]  TBI   UNITXI)   8TATI8  AND   GBBAT  BIUTAXN,  418 

INTBRNATIOITAI.  COPTBIOBT. 

The  proposed  international  oopyright  has  an  important  bearing  in 
this  connection.  The  object  of  this  copyright  is  to  give  to  the  authors  of 
b<3ok5,  or  their  assigns,  the  exclusive  right  of  publication  in  both  coun- 
tries, in  order  to  keep  up  the  price  in  both.  That  this  enhancement  of 
the  piice  in  one  country  of  books  produced  in  the  other,  will  have  a 
tendency  to  limit  the  mutual  circulation  of  current  literature,  will  not 
he  questioned. 

Whether  the  proper  encouragement  of  authors  requires  this  to  be 
done,  is  the  point  which  the  tvro  gorernments  should  first  settle.    Copy- 
:'.i;h\,  does  not  exist  except  as  created  by  law ;  for  it  begins  only  when 
the  steps  are  taken  which  the  law  prescribes,  and  it  continues  only  so 
lon^  as  the  law   extends  it.    There  is,  therefore,  no  natural  right  in- 
Tolvtd ;  a  man's  thoughts  are  his  own  only  so  long  as  he  keeps  them 
to  himself;  when  he  has  uttered  them  they  become  the  thoughts  of  all 
who  receire  them,  and  who  thenceforth  use  them  at  pleasure.    The  title 
«'f  a  thought  by  original  invention  is  no  better  than  the  title  to  an  aster- 
oid by  original  discovery.  The  clothing  of  a  man's  thoughts  in  language 
1^0  more  entitles  him  to  their  exclusive  publication,  after  they  are  gone 
orth  to  the  public,  than  a  man^s  careful  study  of  the  clothing  of  his 
person  entitles  him  to  forbid  the  imitation  of  his  garb  and  gait  as  he 
wallis  the  streets.    The  law  creates  oopyright  on  the  assumption  that 
the  public  good  will  be  promoted  by  the  encouragement  thus  granted 
to  authors  to  publish  their  works.    The  same  law  limits  copyright  as  to 
iu  duration  and  extent,  because  the  public  good  forbids  the  existence  of 
A  power  to  perpetuate  the  high  price  of  books.    What  a  drawback  it 
vould  have  been  upon  the  circulation  and  influence  of  English  liters* 
tare,  if  the  law  had  invested  the  heirs  of  Shakespeare,  of  Bacon,  of  Mil- 
^%  with  a  perpetual  copyright  in  their  immortal  work !    The  only 
proper  question  in  the  case  relates  to  the  sufficiency  of  the  present  en- 
couragement to  authors,  by  the  exclusive  possesion  of  such  a  market  for 
'^oeir  books  as  is  afforded  by  either  one  of  these  two  nations.    It  is  only 
^  good  book,  in  the  intellectual  sense,  that  deserves  encouragement  from 
^h»  goTemment.    And  it  is  only  a  good  book,  in  the  commercial  sense, 
that  is  capable  of  being  benefited  by  copyright.    A  very  large  majority 
''^  the  books  that  are  published  never  sell  at  all  beyond  the  first  edition; 
&Qd  the  ezcluse  benefit  of  the  first  edition  is  in  most  cases  sufficiently 
«<cured  by  priority  in  the  market. 

Of  the  comparatively  small  number  of  books  in  either  country  which 
^UQ  through  many  editioni,  the  prodaci  of  money  to  their  authors  is 
i)ow  extremely  liberal.    Many  of  the  makers  of  such  books  are  able  to 


414  TAX   UNITXD   STATES  AKD    ORBAT  BRITAIIT.  [/tt»e, 

live  in  handsome  independence  on  the  frnits  of  their  labors,  sudi  as  is 
rarely  attained  by  those  of  equal  ability  either  in  the  professions  or  in 
the  public  service.  These  high  literary  prizes  are  already  a  strong 
inducement  to  others  to  try  their  fortune  in  the  field  of  literary  adven- 
ture, as  is  seen  by  the  multitude  of  buoks  which  fall  still  born  from  the 
press,  because  they  do  not  possess  the  qualities  for  which  the  people 
purchase  books. 

It  can  hardly  be  maintained  that  authorship,  ronsidered  either  as  ao 
industry  or  as  an  int(>llectual  profession,  is  not  as  well  protected  and 
encouraged  in  proportion  to  the  usefulness  of  its  products,  as  any  other 
human  pursuit.  The  pecuniary  return  realized  from  their  publication 
is  neither  the  only  nor  chief  encouragement  by  which  authors  of  merit 
are  induced  to  publish  their  works.  The  good  they  may  do  to  mankind 
the  reputation  they  may  acquire,  and  the  satisfaction  of  seeing  their 
thoughts  widely  diffused  and  received,  and  make  a  part  of  the  mental 
wealth  of  their  country  and  age,  outweigh  a  thousandfold,  to  an  enlarged 
and  generous  mind,  the  value  of  the  material  silver  and  gold  yielded  br 
their  copyright.  And  it  cannot  be  doubted  that  these  higher  retjns, 
are  directly  increased  by  the  freedom  of  publication  unrestricted  bj 
copyright;  because  cheapness  of  price,  and  variety  in  the  forms  of  pub- 
lication, are  prime  elements  in  the  widest  circulation  of  books. 

The  reputation  gained  by  Dickens  and  Thackeray  and  Tennyson,  by 
the  boundless  circulation  of  their  books  in  America,  has  powerfallj  re- 
acted upon  their  position  in  their  own  country,  in  ways  which  no  amount 
of  money  received  for  copyright  could  ever  have  equalled.  The  same 
is  true  of  many  American  authors,  whose  standing  and  satisfaction  are 
mightily  enhanced  by  the  circulation  of  their  works  in  England,  wlely 
through  the  freedom  of  the  reprint.  It  is  impossible  to  exaf»gerate  the 
value  of  this  international  exchange  of  ideas  through  the  medium  of 
books,  as  a  means  of  that  general  assimilation  of  thought  and  life,  wbicb 
is  the  highest  guaranty  of  political  and  commercial  intercoune  and  per- 
manent friendship  between  the  two  countries.  While  each  nation,  for 
the  most  part,  buries  its  own  literary  trash,  and  each  retains  the  ezdii- 
sive  circulation  of  books  adapted  specially  to  its  own  use,  the  whole 
volume  of  the  best  thoughts  of  one  country  have  now  their  widest  difo* 
sion  through  their  freedom  of  publication  in  the  other.  And  as  this 
goes  on  from  age  to  age,  always  increasing  as  it  advances,  Uie  minds  of 
both  nations  will  come  to  be  fed  chiefly  upon  the  same  food,  until  they 
grow  alike  in  all  the  great  qualities  of  national  life. 

CHEAP    POSTAGE. 

The  two  countries  have  a  valuable  modem  experience  as  to  the  inOn- 


1S69]  THK  UVITBD  0TATI8   AND   OBBAT  BRITAIIT.  415 

ence  of  eheap  postage,  in  hoatening  the  process  of  assimilation  among  a 
people^  as  well  as  in  greatly  promoting  the  general  advancement  of 
civilization.  And  yet  neither  government  appears  to  have  entertained 
:be  idea  of  extending  the  application  of  the  same  principles  to  ocean 
postf ge.  It  kas  happened,  unfortunately,  for  reasons  not  necessary  to 
be  DOW  considered,  that  the  government  of  the  United  States,  in  cheap- 
ecing  their  rates  of  inland  postage,  have  never  hit  upon  a  complete  sys- 
tem. Having  established  a  rate  higher  by  fifty  per  cent  than  the  Eng. 
l<ih  postage,  they  have  been  compelled  to  admit  a  number  of  variations 
fv>r  specal  classes  which  destroyed  the  uniformity  of  rate  and  the  sim 
[•licity  in  the  details  of  arrangement,  so  essential  to  the  success  of  cheap 
p<>tdge.  Until  it  shall  adopt  the  fundamental  principles  of  uniformity 
111  rate,  simplicity  in  arrangement,  and  beneficence  in  spirit,  its  attempts 
at  reform  in  ocean  postage  would  fail  of  the  success  which  a  better  sys- 
tem would  surely  attain.  The  English  system  of  cheap  postage,  on  the 
'her  hand,  came  full-orbed  from  the  brain  of  Sir  Rowland  Ilill ;  purely 
scientific  in  its  principles,  complete  in  its  details,  beneficent  in  its  plans 
&nd  successful  in  its  operations. 

It  is,  beyond  a  question,  the  most  perfect  piece  of  government  machi- 
'try  that  ever  was  invented.  It  presents  the  government  to  the  people, 
>Q  daily  contact  with  their  business  and  their  happiness,  but  always  in 
'he  aspect  of  a  benefactor,  giving  benefits  of  inestimable  value  and  ex- 
a.ting  but  a  penny  in  return. 

Ad  English  statesman,  not  now  living,  Mr.  Richard  Cobden,  in  con- 
versation with  the  writer  in  1843,  bore  the  strongest  testimony  in  its 
iVivor,  in  the  opinion  expressed,  that  the  introduction  of  cheap  postage 
Lu'l  rendered  a  violent  revolution  for  the  overthrow  of  the  government 
>ri  England  forever  impracticable. 

By  the  &cilitie8  which  its  affords  for  bringing  the  people  all  over  the 
C'UQtry,  and  of  all  classes,  into  mutual  acquaintance  and  sympathy,  and 
rito  the  knowledge  oi  each  other's  wants  and  wishes  and  plans,  it  lends 
^uch  unity  and  force  to  public  opinion  that  all  needed  reforms  can  be 
V  :l'Cted,  one  after  another,  by  the  demonstrated  will  of  the  people,  with- 
it  violence  or  revolution.  A  quarter  of  a  century  has  passed,  and  he 
us  not  yet  proved  a  false  prophet. 

It  is  a  curious  phenomenon  in  political  philosophy,  that  in  thirty 
7 ears  which  have  passed  since  the  publication  of  Sir  Rowland  Hill's 
r:miphlet,  and  with  all  the  experience  by  which  his  method  has  shown 
i'.^elf  to  be  as  perfect  in  operation  as  it  is  scientific  in  theory,  no  attempt 
l<:is  yet  been  made  to  apply  its  beneficent  and  irrefragable  principles  to 
the;  postage  of  letters  sent  by  sea.  There  is  no  reason  in  the  nature  of 
the  two  services  why  the  same  method  should  not  be  adopted  at  sea  as 


416  THE   UNITED   STATES  AND   OIUIAT  BBITAIH.  [/«M| 

on  Isnd,  and  with  the  same  satisfactory  results — ^all  good  and  no  e?iL 
The  cost  of  transportation  of  letters,  which  suggests  itself  at  fint 
blush  as  the  great  obstacle  to  cheap  postage,  was  demonstrated  by  Sir 
Rowland  Hill  to  be  a  mere  insignificant  portion,  two-ninths  of  a  ftrth- 
ing  for  a  single  letter,  too  small  to  be  stated  in  money.    And  eT«i 
thi^,  it  was  shown,  would  be  diminished  in  iuTorse  proportion  as  ths 
number  of  letters  was  increased.    The  cost  to  the  government  arisM 
from  other  sources,  which  he  classed  together  as  "  Management."    And 
this  cost  of  management  is  chiefly  in  sending,  running  and  reoeiTing  tbe 
mails,  and  is  therefore  nearly  independent  of  the  number  of  letters. 
Consequently,  the  cost  is  increased  in  only  a  very  small  proportion  as 
the  number  of  letters  is  increased. 

Hence  it  is  that  the  net  income  of  the  constantly  increasing  gross 
amount  of  British  postage  has  constantly  adyanced  until  it  has  sur- 
passed the  expenditure  of  the  Post  Office,  so  that  the  actual  cost  to  the 
government  of  letter  postage  in  Great  Britain  is  now  less  than  a  half- 
penny.   Why  should  not  the  management  be  just  as  simple^  and  ^ 
transportation  just  as  cheap,  by  sea  as  on  land  ?    The  fireight  of  a  bar- 
rel of  flour  from  New  Yorlc  to  Liverpool  costs  from  two  to  four  shil- 
liDgs  sterling,  that  is,  from  half  a  dollar  to  one  dollar  in  American 
money.    Its  weight  is  two  hundred  pounds,  equal  to  six  thousand  four 
hundred  half-ounce  letters,  the  postage  on  which,  at  a  penny,  would  be 
£36  1 8s.    The  actual  contrast  is  still  more  striking,  by  the  fact  that 
the  average  weight  of  single  letters  is  less  than  a  quarter  of  an  ounce; 
so  that  the  barrel  of  flour  weighs  as  much  as  12,800  letters,  the  postage 
of  which  would  be  about  fifty  pounds  sterling.    We  may  make  all  rea- 
sonable allowance  for  the  bulkiness  of  letters,  as  compared  with  barreit 
of  flour,  but  if  we  reckon  them  as  *'  measurement  gooda^"  the  actual  ooit 
of  the  transportation  of  a  single  letter  will  not  exceed  one  third  of  s 
mill,  or  about  sixty-four  thousandths  of  a  farthing.    The  miuls  at  set 
would  be  much  less  exposed  to  injury  or  depredation  than  on  lan<)y  and 
the  whole  management  is  more  simple  and  less  expensive.    If  dtha 
government  finds  it  expedient,  for  reasons  of  its  own,  to  subsidise  lints 
of  mail  steamers  with  large  gifls  of  money  for  carrying  the  mails,  those 
reasons  are  governmental  in  their  nature  rather  than  postal,  and  this 
expense  is  not  properly  charged  to  letter  postage.    As  far  as  postage 
proper  is  concerned,  there  is  nothing  to  hinder  the  placing  of  the  ooein 
mails  upon  precisely  the  same  footing  with  the  inland  mails.    As  the 
United  States  have  now  no  steamers  plying  between  the  two  countries, 
the  whole  matter  rests  at  present  with  the  government  of  Great  Britsio. 
And  the  reasons  which  prevent  its  adoption  will  be  such  as  influence 
the  determination  of  that  government  alone.    That  a  twopenny  postage 


1869]  TBB    aMITBD  8TATB6   ANl)   GRSAT  SRITAIK.  41V 

between  the  two  countries  would  produce  a  prodigious  increase  of  cor- 
respoodence,  is  as  certain  as  that  such  an  increase  of  correspondence 
would  deepen  the  currents  of  mutual  sympathy  and  friendship  between 
the  two  peoples.  It  is  hardly  too  much  to  predict  that  the  same  cause 
— oheap  postnge — which  is  supposed  to  hav*  rendered  a  bloody  revolu- 
tion in  England  impossible,  would  be  likely,  if  continued  for  a  genera- 
tioD,  to  render  a  bloody  war  between  the  two  nations  unimaginable. 
Those  only  who  deprecate  the  mutual  assimilation  which  unrestricted 
intercourse  will  produce,  will  resist  the  introduction  of  such  an  arrange- 
ment of  intercourse  as  would  be  fruitful  only  of  good  to  both  peoples,. 
ani  fraught  with  immeasurable  incidental  benefits  to  our  common 
humanity. 

COMMXBCIAL  BSLATIOVS  07  XTATIONS. 

But  the  greatest  cirilizer  and  assimilator  of  nations  is  Commerce. 

By  the  very  structure  of  the  worlds  by  the  unchangeable  conforma- 
tions of  continents  and  seas,  by  the  diversities  of  soil  and  climate  and 
production,  and  by  the  inherent  distinctions  among  men  in  regard  to 
their  preferences  and  capacities,  the  Creator  has  clearly  manifested  his 
<^esign  tbat  the  human  race  should  depend  upon  the  mutual  exchange  of 
ii)mmodities  for  its  highest  gratifications  and  developments.  It  is  only 
ta  quite  modern  times  that  commerce  has  begun  to  produce  its  highest 
benefits ;  and  even  now  its  capability  of  promoting  the  welfare  of  man- 
kind is  only  partially  displayed.  In  proportion  as  religion  has  soflened 
the  rugged  features  of  society,  and  thus  allowed  the  dictates  of  humanity 
ft  wider  scope  and  greater  influence,  commerce  has  at  once  grown  more 
free,  and  at  the  same  time'has  regulated  itself  more  by  the  rules  of  red- 
procal  justice.  Science,  also,  has  analyzed  its  principles,  and  given  to 
:t  the  guidance  of  intelligent  reason.  From  the  days  of  Adam  Smith, 
[>hllosophers  at  least  have  understood  that  trade  is  by  its  very  nature 
&n  interchange  of  benefits.  Each  party  gives  that  which  he  values  less, 
uid  receives  in  exchange  that  which  he  values  more,  and  thus  both  are 
enriched  by  the  process.  Without  trade  there  could  be  no  riches.  A 
nan  might  dig  diamonds  from  a  mine,  and  if  he  could  not  sell  them  he 
would  starve  in  poverty.  A  community  may  fill  itself  to  overflowing 
^ith  its  own  productions,  and  yet  remain  poor  and  barbarous  as  to  the 
blessings  which  wealth  confers,  until  it  opens  its  doors  to  exchange  the 
bitherto  worthless  contents  of  its  storehouses  for  the  precious  products 
of  other  climes.  As  all  such  interchange  is  voluntary,  it  follows  that 
ifeedom  is  an  essential  element  of  success.  Trade  is  trade  only  so  &r 
^'^  it  b  free,  because  the  choice  of  the  will  is  only  choice  so  long  as  it 
i«free. 


418  THE   UNITED   STATES   AND    ORSAT  BRITAIN.  [/KM, 

The  iDterferences  of  power  to  restrict  trade  areylike  the  interposiUoDs 
of  force  in  opposition  to  free  wiil,  mechanic  il  and  obstructive  in  thdr 
nature  and  oppressive  in  their  operation,  except  where  jostified  by  some 
higher  extraneous  reason.  From  the  days  of  the  old  Romans^  who  used 
the  same  word  to  designate  an  enemy  and  a  stranger,  it  seems  to  have 
been  a  prevalent  idea  in  Europe  that  hostility  was  the  most  esseotial 
element  of  national  life,  and  that  nations  existed  chiefly  to  distrust  sod 
depress,  or  to  injure  and  destroy  other  nations.  It  seemed  to  be  m- 
cepted  as  a  fundamental  axiom  of  statesmanship  that  no  ration  could 
enrich  and  elevate  itself  but  at  the  expense  of  its  neighbors.  The  nearest 
countries  as  to  locality  were  regarded  as  most  essentially  and  constantly 
*'  natural  enemies.*'  The  sorrowful  poet  Gowper  wrote  truth  as  well  as 
poetry  when  he  sung :  2 

**  Lands  iDtersected  by  a  narrow  frith 
Abbot  each  other.     MouotaioB  interpoaed 
MaKe  eoemieB  of  nations,  who  bad  else, 
Like  kindred  drops,  l>een  mingled  into  one." 

The  concurrent  growth  of  commerce  and  civilization  in  the  fourscore 
years  that  have  elapsed  shows  that  the  poet  was  also  a  prophet,  vba 
he  speaks  of  commerce  as  a  necessary  remedy  : 

'*  Sure  there  is  need  of  social  intercom  ee. 
Benevolence  and  peace,  and  mntaal  aid. 
Between  the  nations,  in  a  world  that  seems 
To  toll  the  death-bell  of  its  own  decease, 
And  by  the  voice  of  all  its  elementi 
To  preach  the  general  doom.'* 

In  the  face  of  the  vast  and  ruinous  military  preparations  of  most  d 
the  countries  in  Europe,  and  the  failure  of  all  negotiations  for  disarms- 
ment,  it  is  yet  an  unquestionable  fact  that  the  political  and  commercial 
relations  of  these  countries  to  each  other  have  been  wonderfully  amelio- 
rated, and  that  the  increase  of  commerce  among  them  is  at  once  a  pHs- 
cipal  cause  and  an  accurate  measure  of  this  great  improvement  Com- 
merce, in  proportion  as  it  has  become  more  free,  has  extended  itself 
more  and  more  widely,  and  everywhere  encouraged  a  more  varied  ^ 
productive  ministry,  which  in  its  turn  furnishes  more  abundant  material 
for  the  operations  of  commerce,  until  the  conviction  has  become  geDtiil 
among  civilized  nations  that  the  trade  of  a  country  in  peace  is  vorth 
more  than  its  spoils  in  war.  And  even  in  cases  where  the  arbitrament 
of  war  cannot  be  avoided,  although  the  improvements  in  the  militarr 
art  make  war  appear  more  terrific  in  its  display,  so  great  is  the  sap* 
porting  and  healing  efficacy  of  modern  commerce,  that  nations  snfffx 
less  and  recover  more  quickly  under  the  inflictions  of  war  than  thev  did 
a  hundred  years  ago. 


1S69]  TBS   UNITED  STATES    AKD    GREAT   BRITAIN.  419 

In  the  former  ages,  the  right  of  trade  was  regarded  as  a  privilege,  to 
be  conceded  us  a  boon,  or  prohibited  as  a  penalty  ;  granted  with  conde- 
scension, or  refused  in  anger.  As  each  nation  believed  that  it  could 
enrich  itself  by  trade  only  through  the  impoverishment  cf  its  neighbor, 
and  could  enrich  its  neighbor  by  trade  only  in  proportion  asit  impover^ 
ished  itself,  the  regulation  of  international  commerce  became  a  subject 
of  the  profoundest  study  of  statesmen  and  scholars,  endeavoring  to  dis- 
cover in  what  way  a  government  could  most  advance  the  interests  of 
one  country,  while  conferring  the  smallest  benefits  or  inflicting  the 
greatest  injury  upon  another. 

PKOTECTIVS   DUTIES. 

Like  all  the  struggles  against  the  beneficent  laws  of  social  life  estab* 
lished  by  the  Creator,  these  narrow  schemes  perpetually  frustrated 
themsel ve5«.  And  wherever  they  were  reciprocally  pursued,  their 
results  of  mutual  impoverishment  or  open  hostility  showed  that  restric- 
tions upon  trade  are  in  their  nature  identical  with  war,  which  is  only  a 
trial  between  nations  to  see  which  can  do  the  other  most  harm.  As  the 
commerce  between  neighboring  nations  increased,  it  was  found  out, 
especially  by  English  statesmen,  that  the  same  policy  of  commercial 
restriction  through  the  taxing  of  foreign  products,  which  had  been 
orifrinally  introduced  for  purposes  of  hostility  or  national  rivalry,  could 
be  made  to  subserve  the  further  object  of  encouraging  the  production  of 
articles  at  home,  which  would  otherwise  be  imported  from  abroad. 

Hence  productive  duties  on  foreign  products  came  to  be  employed  as 
a  substitute  for  governmental  bounties  on  home  products,  as  a  means 
of  promoting  that  diversity  of  industrial  pursuits  which  is  so  necessary 
an  ingredient  to  national  prosperity. 

The  protective  policy  is  essentially  of  British  origin,  or,  at  least,  has 
been  followed  out  by  the  British  i^overnment,  until  a  recent  period,  in 
the  most  comprehensive  manner.  The  operation  of  the  protective  policy 
is  to  help  domestic  industry  by  making  foreign  products  dear,  while 
the  bounty  policy  aims  at  the  same  result  by  making  domestic  products 
cheap. 

The  one  aims  at  high  prices,  the  other  at  low  prices.  The  fact  was 
lost  sight  of,  that  the  artificial  raising  of  prices,  if  long  continued,  inevi- 
tably spreads  itself  over  all  branches  of  industry,  enhances  tha  cost  of 
living  and  the  wages  of  labor,  and  thus  neutralizes  its  effect.  This  com- 
pels a  further  advance  of  protective  duties,  issuing  again  in  a  similar 
equilibrium  of  prices,  calling  for  further  imposts. 

The  great  increase  and  dififusion  of  wealth  in  modern  commercial 
nations  permitted  this  policy  to  be  pursued  for  a  long  time,  notwith- 


420  THB  17VITED   BTATS0   AKD   GREAT  BRITAIir.  [/ne, 

alinding  its  obvious  tendency  everywhere  to  make  the  poor  poorer, 
while  it  made  the  rich  richer.    But  there  must  come  a  limit  bejood 
which  the  alternate  elevation  of  the  wages  of  labor  and  the  cost  of  flub- 
aiatence  cannot  be  extended,  and  then  the  protective  policy  breaks  down , 
and  must  be  laid  aside.     And  with  this  comes  in  the  practical  adoption 
of  the  true  economical  philosophy,  that  the  interests  of  nations  are 
mutual  and  not  antagonistic,  which  teaches  that  each  one  grows  io 
wealth  by  the  advance  of  its  neighbor ;  that  the  impoverishment  d  s 
nation  destroys  the  value  of  its  trade,  and  thus  impairs  the  prosperity  ot 
its  neifi^hbors ;  that  the  highest  possible  prosperity  of  a  country  depends 
upon  the  greatest  possible  extension  of  its  commerce,  which  is  best  pro- 
moted by  the  utmost  degree  of  freedom  in  trade :  and  that  the  divers- 
fieation  of  productive  industries  rests  on  the  surest  loundatioos  wbec 
allowed  its  natural  growth,  under  the  influence  of  increasing  oommenx, 
aivancing  intelligence,  unlimited  freedom  of  labor,  and  the  highest  ssia- 
xance  of  the  enjoyment  of  its  products.    And  this  is  also  demonstrstiog 
in  practice,  that  the  continuince  of  the  entente  eardiale  beiween  natioBs 
IflPg^supposed  to  be  necessary  rivals,  if  not  our  natural  enemiea,  is  mot 
a«re  to  be  permanent  when  it  is  upheld  by  the  freest  interebaoge  of 
their  respective  prod  nets. 

All  Europe  is  now  falling  gradually  into  this  new  system  of  policv, 
the  nations  most  ad vamced  in  freedom  and  intelligence  takethe^ltai 
73ie  government  of  the  United  States  still  adheres  to  the  protectire 
policy,  in  all  its  bearings,  ani  proportions,  with  the  utmost  tesMr 
<aijf  and  is  thus  far  supported  by  the  apparent  consent  of  the  gr«st 
body  of  the  people  of  that  country.  The  fact  is  certain,  and  if  foUj 
esamined  is  less  to  be  wondered  at  than  regretted.  That  a  body  of 
English  emigrants,  going  to  found  an  English  colony,  having  Eogliib 
laws  and  habits,  and  carrying  with  them  only  English  ideas  and  liten- 
tve,  should,  on  setting  up  for  themselves,  fall j  spontaneously  into  the 
adoption  of  English  methods  of  policy  in  regard  to  moat  things  not 
aetually  involved  in  the  process  of  separation,  would  be  anti^pated  ai 
philosophically  as  it  has  been  realized  historically. 

Mr.  Alexander  Hamilton,  the  first  Secretary  of  the  Treasury  of  xht 
United  States  under  the  Constitution,  in  his  first  report  on  finance,  pro- 
posed the  encouragement  of  domestic  manufactures  as  one  of  the  leading 
objects  to  be  aimed  at  in  legislation.  And  the  first  Congress  of  tbe 
present  government  incorporated  this  idea  by  express  words  in  its  tti< 
aat  laying  duties  on  foreign  goods.  By  the  greator  number  of  Americac 
statesmen  and  financiers  this  idea  has  been  received,  withoat  a  aerioui 
question  of  its  soundness,  to  this  day.  In  all  the  incessant  fluctuations 
qi  the  tarifi^  the  chenges  have  been  only  in  degree  and  not  in  principle 


1869]  THS  UNITED   BTATS8  AND   GBSAT  BBITAIIT.  4S1 

In  all  the  strifes  of  parties  they  have  started  with  the  oommon  axiom 
of  "duties  for  revenue,  with  incidental  protection."  Of  late  a  few 
extremists  have  almost  ventured  to  proclaim  the  doctrine  that  duties 
ODghtto  he  laid  with  reference  to  protection  chiefly,  even  if  their  effeet 
shoald  he  a  diminution  of  revenue. 

Their  plain  utterance  would  be,  '*  Duties  for  protection,  with  inciden- 
tal revenue." 

It  is  ^»afe  to  say  that  the  system  has  reached  its  acme  in  the  United 
States,  and  that  any  future  changes  in  the  tariff  will  be  in  the  other 
direction.  The  need  of  revenun  to  meet  the  exigencies  of  the  public 
debt,  the  general  embarrassment  arising  from  the  continuance  of  exor- 
bitant prices,  the  vigor  with  which  the  true  principles  of  political  eoon- 
omy  are  now  urged  upon  the  public  mind,  and  the  obvious  interest  of 
the  country  in  the  restoration  and  expansion  of  its  commerce,  cannot 
but  extend  the  conviction,  already  adopted  by  large  numbers  of  the 
abJest  thinkers  and  most  learned  scholars  of  the  country,  that  the  pro- 
tective policy  has  already  been  carried  too  far,  and  that  the  future 
prosperity  of  the  people  depends  now  upon  a  rapid  change  towards  the 
policy  of  free  trade.  The  common  sophistries  by  which  the  protective 
policy  justifies  itself  are  only  the  gloss  by  which  it  is  apologized  for  and 
made  presentable  in  the  arena  of  public  opinion.  A  more  careful  exam- 
ination of  the  facts  will  show  that  its  vital  principle  is  to  be  found  in 
the  idea  of  national  antagonism  which  is  discussed  in  the  preceding 
paragraphs.  No  current  argument  in  its  favor  would  h^  considered 
complete,  no  popular  presentation  of  it  would  be  [found  persuasive 
enough  to  satisfy  the  body  of  the  American  people,  unless  it  was  vital- 
ized with  the  idea  that  it  is  both  necessary  and  right  to  protect  the 
laboring  classes  of  the  country  against  the  ruinous  competition  of  "  the 
pauper  labor  of  Europe." 

That  is  the  opprobrious  term  employed  by  the  protectionist  press  of 
America  to  describe  the  industrial  classes  of  the  parent  countries  of 
their  own  population.  But  the  laboring  classes  in  America  are  already 
beginning  to  see  that  they  have  only  a  choice  of  competitions ;  for  the 
facilities  of  crossing  the  ocean  are  now  such,  that  the  kboring  classes  of 
both  Europe  and  Asia  can  easily  transfer  the  field  of  competition  to  the 
Americin  soil,  so  that  all  they  can  gain  by  their  protective  tariff,  if  it  is 
continued  a  length  of  time,  is  the  privilege  of  paying  exorbitant  prices 
for  their  subsistence,  while  the  capitalist  gets  the  lion's  share  of  the  ben- 
efits. 

But  the  selfish  expectation  of  building  up  their  own  manufacturing 
interests  by  destroying  those  of  their  European  neighbors,  with  the 
satisfaction  of  pampering  their  own  laborers  by  starving  their  kindred 


422  TRB  UNITED   STATES   AND   GREAT   BRITAIN.  JtUt, 

in  Europe,  is  still  insufficient  to  give  political  popularity  to  the  protK- 
tive  system,  such  as  will  secure  its  permanent  •ontinuance.  The  appeal 
is  made  to  what  is  supposed,  by  superficial  thinkers,  to  be  the  over- 
mastering passion  of  the  American  people,  by  holding  forth  the  prot«c 
tive  policy  as  a  weapon  of  special  power  to  injure  the  British  natioo. 
The  supposed  traditional  hatred  of  England,  handed  down  from  tbe 
American  revolution,  is  chafed  and  exasperated  by  representatioDs 
designed  to  create  the  belief  that  the  British  ommercial  poltcj  is 
always  governed  by  the  single  aim  to  destroy  American  roanufju^um 

And  no  man  of  prominence  in  America  can  support  even  ^  partial 
relaxation  of  the  rigors  of  protection,  without  bringing  upon  himself  the 
stigma  of  being  a  partisan,  and  probably  a  pensioner,  of  '*  British  free 
trade."  The  persLntence  and  vehemence  with  which  these  represecU 
tions  are  urged,  attest  the  consciousness  of  the  protection  advocate  tbtt 
their  cause  cannot  be  maintained  among  their  own  people,  unless  the 
belief  is  propagated  that  high  duties  are  a  weapon  of  special  force  t) 
injure  Grett  Britain.  If  the  tariff  would  inflict  serious  injury  onlyupoa 
Germany,  the  German  citizens  have  already  too  much  political  influesce 
to  allow  hatred  of  Germany  to  be  aroused  and  appealed  to  in  favor  of 
any  measure  of  policy  in  Amerio/t.  If  it  were  only  France  that  wai 
concerned,  no  American  statesman  would  venture  to  propose  the  ioilic* 
tion  of  injury  upon  France  in  face  of  the  strong  national  sympatiue 
with  France  which  have  come  down  from  the  days  of  IndependeBce. 
The  protective  policy  cannot  stand  in  America,  by  the  admission  of  iu 
advocates,  except  as  it  is  deemed  an  expression  of  hos''ility  against  Ens* 
land.  But  for  these  representations  it  would  begin  to  be  ahaDdooed 
before  the  close  of  the  present  administration.  So  long  as  it  is  contioued 
it  will  remain  an  expression  of  unabated  and  unalterable  hostility,  ia 
the  face  of  which  it  is  in  vain  to  expect  any  considerable  amelioraticp 
in  the  political  and  commercial  relations  of  the  two  countriess. 

The  circle  of  topics  belonging  to  this  discussion,  cannot  be  compie'*^' 
without  a  reference  to  the  Dominion  of  Canada,  in  iu  bearing  upon  th- 
relations  between  the  two  countries.  It  is  impossible  to  wiok  oot  i' 
view  the  fact  that  the  present  value  of  this  possession,  in  tho  eje»  of  t^« 
British  nation,  has  reference  chiefly  to  the  contingency  of  war  with  tkc 
United  States.  Since  the  adaption  of  free  trade,  the  value  of  such  a  tr>r- 
ritory  for  its  trade  depends  upon  the  condition  of  the  people,  aod  not  t' 
all  on  their  political  relations.  Tlie  possession  or  the  abandoomeot  <\ 
Canada  can  have  no  perceivable  bearing  upon  the  relations  between  Great 
Britain  and  any  European  nation,  unless  it  might  posaibly,  in  some  coc- 
tingency,  become  a  means  of  involving  the  United  States  in  some  eotaog- 
ling  alliance  with  a  European  power  at  war  with  England . 


18G9]  THE   UNITBO   BTATB8    AKD    ORBAT   BRITAIN.  42$ 

THB   UMITED   STATES   AND   BRITISH    AMERIOA. 

Id  a  fttrictlj  military  poiDt  of  view,  looking  either  to  an  American  or 
Earopean  war,  Canada  is  rather  a  source  of  weakness  than  a  tower  of 
ureogtb  against  any  power  having  both  an  army  and  a  navy.    It  would 
be  a  prominent  point  of  attack,  while  the  highest  British  military  author- 
ities }>ronounce  it  incapable  of  a  prolonged  defence.    If  vn  study  carefully 
the  utterances  of  British  statesmen  and  authors,  we  are  struck  with  the 
(ODstant  outcropping  of  the  idea  that  Canada  is  to  be  held,  cherished, 
I'nproved,  strengthened,  fortified,  as  a  make-weight   against  the  United 
S:ate!i.    The  recent  confederation  of  the  provinces  was  urged  upon  them 
by  the  Imperial  government  as  an  imperial  measure,  and   for  imperial 
I'jects,  rather  than  for  any  benefit  it  would  be  to  the  people  of  the  colo- 
Tiii».    Every  influence  which  the  home  government  could  employ  was  put 
io  requisition,  and  brought  to  bear  upon  the  provincial  leaders  before  the 
t^nal  consent  could  be  obtiuned  to  the  union.    A  powerful  party  in  the 
Dominion  already  sees  with  pain  that  it  is  a  great  injury  to  their  future 
[rospects  to  be  thus  held  in  a  position  where  they  are  expected  to  feel 
tlie  heaviest  of  the  blows,  in  a  possible  war  in  which  they  have  no  concern. 
TLe  proposed  railway  between  Quebec  and  Halifax,  the  funds  for  which 
'«ere  held  up  as  one  of  the  chief  inducements  for  confederation,  is  now 
•  tiddown  by  a  route  running  quite  away  from  the  population,  for  govern- 
N^entHl  reasons  only,  having  reference  to  no  necessity  but  that  arising 
frotn  hostilities  with  the  United  States.    Not  for  commercial,  but  military, 
Teutons  they  are  called  upon  to  build  a  railway  through  a  cold  and  sterile 
region,  which  will  probably  be  among  the  last  in  the  world  to  become 
[opnloos  and  productive.    It  is   not  for  defence,  but  offence,  that  the 
H^randizemenc  of  Canada  is  cherished.  England  is  not  more  secure  from 
inv»gioD  by  the  forts  in   Canada.    As  a  bulwark  against  invasion  from 
America  Canada  is  worthless.     It  is  only  valuable  as  a  sally-port  for  inva- 
soD  of  America  by  British  troops,  gathered  and  marshalled  in  Canada,  to 
^ul  the  battles  of  Great  Britain  upon  the  soil  of  the  United  States.    If 
Canada  were  held  and  managed  as  it  is,  mainly  for  the  benefit  of  its  trade, 
tlw  Dominion  would  not  be  allowed  to  adopt  the  American  system  of  pro- 
^■^ctive  duties  against  British  products,  but  would  be  brousrht  at  once 
^Mn  the  blessings  of  free  trade.     Its  value  in  this  regard  is  that  of  a 
standing  menace  towards  the  United  States.    It  is  as  if  a  man  were 
^tandin^T  with  a  brandished -club  at  the  gate,  while  inviting  you  to  become 
^ H;lible  and  friendly,  thu^  showing  himself  ready  to  break  your  head  at 
a  moment's  notice  if  yon  disoblige  him.     In  all  this  the  colonies  are 
vtiolly  passive.    They  are  held  as  a  convenience  for  the  uses  of  the 
iDother  country.    Their  sentiments  or  their  interests  are  alike  immaterial 


424  THS  UHITID  STATSa  AKD   GBSAT  BBITAIK.  [JlCM^ 

to  the  result.  Be  they  ever  so  hostile,  they  can  do  no  act  and  punae  no 
policy  on  their  own  account.  Be  they  ever  so  friendly,  they  caonot  help 
being  held  up  as  a  standing  menace  against  the  United  States. 

It  is  impossible  that  amicable  relations  should  be  perfect  betwees 
neighbors,  when  one  keeps  dogs  and  guns  in  constant  display  against  the 
other.  This  would  be  true  were  defence  alone  the  avowed  object  of  the 
army ;  still  more  where  the  object  is  coercion  and  intimidation  by  tbe 
threat  of  invasion  or  injury.  It  is  only  the  slightness  of  the  appreheneioQ 
of  peril  from  this  source  th^t  renders  the  American  people  so  indiflerent 
to  all  these  hostile  demonstrations.  It  is  evident,  however,  that  this 
obstacle  to  national  amity  can  only  be  removed  by  the  adoption  of  a  dif- 
ferent policy,  supported  by  different  reasons,  and  having  other  tendeocia 
than  those  of  menace  and  hostility.  What  that  policy  should  be  is  oot 
within  the  scope  of  the  present  inquiry.  A  single  suggestion  only  will 
be  ventured. 

THE   KORTH   OSRMAN   UKION — ITS  VTWEOTB  AND  ITS  KOfiAU 

AH  friends  of  freedom  who  have  sprung  from  Teutonic  stock,  cheriih 
a  special  solicitude  for  revival  of  civil  liberty  and  its  blessings  in  the 
^  Fatherland  ^  of  Germany.  Such  a  restoration  long  seemed  to  be  so 
impossibility,  through  the  division  of  the  country  into  a  large  number  of 
petty  sovereignties,  whose  mutual  rivalries  and  conflicts  forbade  the  hope 
of  speedy  improvement.  Nearly  forty  years  ago,  a  Gkrman  scholar  sod 
patriot,  himself  an  exile  for  his  love  of  liberty,  Dr.  Francis  Lieber,  now  s 
learned  and  distinguished  publicist  in  New  York,  wrote  in  the  JBme^do- 
pcsdta  Americana,  of  which  he  was  the  editor,  this  striking  predictioD : 

It  needs  no  prophetic  eye  to  foresee  that  the  time  will  coma  when  6e^ 
many  will  sustain  that  strugisle  which  England  and  Franoe  ended  long 
ago;  will  become  united  and  rest  from  the  bloody  conflicts  in  which,  for 
centuries,  Germans  have  slain  Germane,  and  which  have  wasted  their 
wealth,  checked  their  industry,  impeded  their  development  of  public  law, 
and  extinguished  in  their  literature  that  manliness  which  is  so  strong  s 
feature  in  that  of  a  neighboring  nation,  partly  descended  from  thexn— 
conflicts  most  fully  exhibited  in  that  heart-rending  tragedy,  the  Thirtj 
Years'  War. 

It  may  be  asserted,  without  paradox,  that  union  is  at  present  mort 
necessary  for  Germany  than  liberty ;  at  least,  give  her  the  former,  and 
the  latter  will  soon  follow."     (Vol.  v.,  p.  430.    Philad.  1832.) 

That  which  all  the  desolating  German  wars  of  all  the  centuries  had 
not  begun  to  produce,  the  unification  of  the  German  peoples  into  ods 
body,  has  been  reserved  to  be  the  triumph  of  freedom  of  oommereial  inter- 
course. 


1869]  TH8  URITSD   6TATB8   AND   OBBAT  BRITAJK.  435 

In  the  year  180?,  after  the  disastrous  campaigna  of  TJlm  and  Jena,  hj 
which  GrerniaDy  was  almost  subjugated  to  France,  the  statesnoen  of  Prus- 
tia  were  aroused  to  the  conviction  that  there  was  no  way  in  which  the 
nation  could  recover  itself  but  by  great  improvements  in  the  condition  of 
the  people.  The  first  step  was  tho  abolition  of  the  land  monopoly  of  the 
Dobles,  so  that  the  land  could  be  owned  by  its  cultivators.  The  next  was 
the  concession  of  local  self-government  to  the  towns.  The  result  was  seen 
when  the  body  of  the  people  turned  out  to  drive  the  French  invaders  from 
their  soil  in  1813.  During  the  financial  exhaustion  which  followed  these 
terrific  struggles,  the  want  of  capital  and  labor  prevented  any  great 
advance  in  manufacturing  industry.  But  by  1818  the  government 
became  satisfied  of  the  necessity  of  such  a  change  of  policy  as  would 
encourage  manufactures,  by  freeing  them  as  much  as  possible  from  all 
governmental  burdens.  They  therefore  at  once  reduced  the  customs 
duties  to  a  mere  revenue  scale,  in  no  ease  exceeding  ten  per  cent.  At 
the  same  time  earnest  overtures  were  made  to  all  the  independent  Ger- 
manic powers  for  the  establishment  among  them^lves  of  a  ZoU- herein,  or 
Customs  Union,  whereby  absolute  free  trade  should  be  established 
among  all  the  states  agreeing  thereto.  The  bigotry  and  jealousy  of  the 
reigning  houses,  with  other  causes,  made  it  nearly  twenty  years  before 
so  msny  powers  had  come  into  the  Customs  Union  as  would  afford  a  fair 
trial  of  eflScacy.  But  just  in  proportion  as  it  went  into  operation  prosper- 
tj  followed  in  its  train. 

In  1858  tbd  ZoU-Verein  embraced  above  thirty-three  millions  of  peo- 
ple.   Each  state  effected  its  accession  by  the  formality  of  a  treaty,  and 
Bot  by  act  of  legislation — showing  that  the  mutual  regulation  or  abolish- 
i&hment  of  customs  is  a  legitimate  subject  of  treaties  between   states  jeal- 
ous of  their  own  sovereignty.    By  the  fundamental  rules  of  the  ZoU- 
Verein,  each  state  regulated  the  duties  on  ils  own  frontiers,  but  no  foreign 
product  was  to  be  prohibited,  and  no  duties  were  to  be  levied  above  the 
orginal  Prussian  standHrd  of  1818;  that  is  ten  per  cent  ad  valorem,  but 
the  free  \ht  might  be  extended  at  pleasure.     In  fact,  nearly  all  raw  mate- 
rials of  manufactures  were  free.    The  product  of  the  cu»toras  went  into  a 
common  fund,  and  vi ere  distributed  among  the  states  according  to  popula- 
tion.    The  aggregate  of  imports  of  the  Zoll-Verein  increased  from  one 
hundred  and  thirty-seven  million  tbalers  in  1837,  to  two  hundred  and 
eight  millions  in  1853,  and  three  hundred  and  fifty-four  millions  in  1867. 
The  home  product   of  iron  increased  from  three  millions  seven  hundred 
thousand  cwt  in  1860,  to  ten  million  cwt.  in  1858  ;  while  the  importation 
of  iron  increased,  at  the  same  time  from  two  and  a  half  million  cwt.  in 
1B50,  to  six  and  a  half  millions  in  1858.    Both  these  advances  illustrate 
the  financial  improvement  of  the  Union,  and  show  at  once  the  effect  of  a 


426  THB  UNTTBD   STATES   AND   GRSAT  BRirAIK.  [/iHtf, 

low  revenue  rate  of  duties  of  ten  per  cent  on  foreign  imports^  and  of  the 
perfect  freedom  of  trade  between  tbe  parties  to  the  compact.  And  dow 
in  1868,  German  unity,  the  cynosure  of  German  liberty,  is  on  tbe  point 
of  a  complete  consummation,  to  the  great  rejoicing  of  all  tbe  Teutook 
races  and  peoples,  and  the  great  advancement  of  general  peace  and  civiii* 
zation.     Laus  Deo  !* 

These  great  and  beno6cent  results  of  a  system  of  measure  so  simple  aod 
unexceptionable,  prompt  Uie  inquiry,  how  far  an  arrangement  of  some- 
what similar  character  may  ultimately  be  found  both  advantageous  aod 
practicable  between  the  three  great  English -speaking  countries,  Great 
Britain,  tbe  United  States  of  America,  and  the  Dominion  of  Canada! 
An  Anglo-Saxon  Customs  Union  !  Perfect  freedom  of  trade  and  exchaoge 
between  the  three  countries,  i^uch  as  now  exists  between  the  countiea  of 
England,  between  the  States  of  America,  and  between  tbe  provinoes  of 
Canada!  How  many  difficult  problems  it  would  settle!  How  msoj 
causes  of  jealousy  it  would  remove !  How  many  bonds  of  sympathy  it 
would  create  and  strengthen  !  What  causes  (commercial  or  political) 
would  be  likely  to  renew  hostilities  between  these  countries  for  hundreds 
of  years  to  come!  It  is  not  to  be  supposed  that  two  couDtriei>,  bowsfer 
well  disposed,  with  an  ocean  between  them,  would  pattern  their  Custooi 
Union  precisely  after  that  adopted  by  tbe  German  states,  adjacent  to  each 
other.  Let  the  details  be  adjusted  by  those  who  shall  be  called  to  settle 
tbe  terms  of  the  agreement.     Where  there  is  a  will  there  is  a  way. 

THE   FRESSHT   AND   FUTURE    OF    GREAT    BRITAIN   AND   THB   UVITBD  STATES 

The  present  time  seems  eminently  propitious  for  the  discussion  of  the 
question  proposed  by  tbe  Cobden  Club :  •*  On  the  best  way  of  developing 
improved  political  and  commercial  relations  between  Great  Britain  aod 
the  United  States  of  America."  Botb  countries  are  just  about  taking  a 
fresh  departure  in  the  career  of  their  national  history.  In  England  tbe 
great  question  of  parliamentary  reform,  which  has  been  the  bugbear  of 
politicians  for  a  generation,  has  been  settled  with  only  the  bustle  aod 
excitement  of  an  ordinary  change  of  administration. 

The  cry  of"  Finality,"  with  which  tbe  leaders  of  the  Reform  of  1832 
sought  to  cover  their  own  cowardice,  or  calm  the  fears  of  tbe  coantiy 
squires  against  any  further  concession  to  popular  rights,  baa  yielded  at 
last  to  the  dictates  of  reason.  Tbe  teachings  of  all  human  experience 
show  that  finality  is  an  attribute  only  of  the  works  of  God,  and  that 

*  It  Is  A  noticeable  circnmeUnce,  in  il'ngtrat'nK  tbe  eopblBtrfen  by  which  tbe  protedivt 
policy  is  enp  orted  In  America,  that  Mr  *Henrv  C.  Curey,  of  Pbilad  Iphia,  th**  greare^t  l^ 
authori  y  in  favor  of  that  policy,  in  his  lat  tt  pnblifatxon  addncM  he  Pms^iaii  tariff  eri^«) 
and  the  accce««  of  the  ZoiUVerein,  aa  a  b^illlimt  ezampla  of  the  bleaainga  conffBircd  by  pro- 
tection in  contrast  with  Dree  trade  {—WoihUngton  MtpiMkai^  Koyembtfao,  1888. 


18691  TBB  UNITSD  STATES   AND   ORIAT   BRITAIK.  427 

change  is  the  esBeDtial  condition  of  all  bumin  processes  and  institutions 
So  long  as  there  is  anything  sew  to  be  learned,  or  anything  in  the  present 
to  be  made  better,  there  moBt  be  a  change.  The  fear  of  the  ^  American 
ization  of  British  institutions,"  which  was  the  last  resort  the  opponents  of 
progress,  has  already  gone  to  take  its  place  with  the  tears  of  Guy  F^wkes 
and  the  Pretender.*  Hereafter  the  whole  body  of  the  people  are  to  find 
tbeiuselves,  not  arrayed  in  two  hostile  ranks,  eaeh  seeking,  at  the  expense 
of  the  common  wel&re,  to  aggrandize  and  protect  itself  by  depressing  the 
other,  but  as  a  homogeneous  mass  of  iellow-palriots,  all  bound  together 
by  a  community  of  interests  and  responsibilities,  and  all  working  for  the 
common  end,  by  doing  all  in  their  power  to  elevate  tbeir  country,  by 
iniproying  the  condition  of  every  person  in  iL  In  this  career  of  national 
growth  and  glory,  unparalleled  in  history,  there  is  not  a  generous  heart 
ia  America  that  will  not  bid  the  grand  old  mother  country  a  hearty  "  God 
speed  you/'  without  a  single  jealous  reserve,  or  one  misgiving  fear. 

In  like  manner,  in  the  United  States,  the  great  evil  of  slavery,  hereto- 
fore regarded  by  the  whole  British  nation,  with  rare  exceptions,  as  the 
rock  upon  which  the  American  Union  would  one  day  be  broken  to  pieces, 
has  disappeared  as  absolutely  as  if  the  earth  had  opened  and  swallowed  it 
down  deep  in  the  abyss,  closing  over  its  sudden  grave,  so  that  it  can 
Dever  reappear.  Instead  of  wrecking  the  Union,  the  whole  excitement 
connected  with  the  overthrow  of  slavery  and  the  suppression  of  the  larg. 
est  rebellion  that  ever  was  suppressed,  has  not  effected  even  a  change  of 
administration.  Some  financial  embarrassments  and  irregularities,  a  great 
exhaustion  at  the  South,  are  symptoms  of  the  passing  away  of  a  great 
convulsion  ;  but  the  onward  progress  of  the  United  States  in  tiiat  which 
chiefly  concerns  the  greatness  and  glory  of  a  nation,  has  never  been  sus- 
pended for  a  moment^  and  is  now  in  many  respects  more  brilliant  than 
ever  before. 

Thus  the  predictions  of  the  prophets  of  evil  in  either  country,  regarding 
the  other  or  itself,  have  wholly  failed,  and  the  two  nations  are  now  at 
liberty  to  cherish  the  highest  sentiments  of  mutual  respect  and  admira- 
tion,without  a  single  drawback,  it  is  a  happy  omen  for  the  future,  that 
ss  both  nations  are  free  themselves,  and  the  friends  of  freedom  every- 
where, so  the  increase  of  friendly  relations  between  them  depends  mainlj 
upon  the  increase  of  freedom  in  their  mutual  intercourse. 

The  question  raised  by  the  Cobden  Club  is  that  on  which  the  future  of 
the  two  countries  mainly  depends.  Every  measure  and  every  feeling 
that  tends  to  improve  their  mutual  relations,  tends  equally  to  the  most 

*  Mr.  Bobert  Low*,  )n t^^ng  tluirka  Iter  hia  late  e]f>eUon  to  Par^isiDeBt  by  tke  London  TTnl- 
▼«ra  t7«  ne«d  these  remarkable  words :  **  Perhaps  the  beat  thing  Is  to  look  ai  Ameilca,  not  tm 
A  WAi  nil  g  to  deter,  bnt  an  example  to  lm;tate." 


428  THB  BAVK  07  XNOLAKD   BATS  OF  XHTBRXST.  [/tfM, 

eubstantial  advantage  of  the  eounlry  that  shall  adopt  it.    The  two  coqu- 
tries  are  so  much  alike  in  so  many  particulars  of  character  and  eirenm- 
stances,  that  they  cannot  but  grow  roore  and  more  alike,  and  more  and 
more  attached  to  each  other,  if  progress  is  permitted  in  that  direcdon. 
At  the  same  time  the  two  are  so  different  in  so  many  respects,  that  it 
will  be  possible  enough  for  them  to  grow  more  and  more  estranged  and 
embittered,  until  in  a  coarse  of  ages  it  will  be  hard  to  believe  that  the^ 
came  of  the  same  stock,  and  were  once  the  same  in  language  and  religion, 
in  laws  and  manners,  as  children  of  the  same  mothers,  and  heirs  of  tbe 
same  fathers.    It  is  impossible  that  their  political  and  commerdal  rda- 
tions  shall  remain  as  they  are  for  a  few  generations  to  come.    The  begin- 
ning of  the  next  century  will  show  something  of  the  huge  proportions  of 
the  problem  now  under  consideration.    The  generation  ot  scholars,  of 
statesman,  of  politicians,  and  men  of  business,  now  on  the  stage  of  action 
stand  at  the  gate  of  this  awful  future.    Impulses  and  directions  now  giren 
to  the  course  of  affairs  will  bear  fruit  of  good  or  evil,  in  proportions  so 
gigantic  as  we  who  are  now  planting  the  seeds  of  things  have  never  yet 
seen,  and  could  not  believe,  though  a  man  should  tell  us  of  them. 


^m0^^^0^0^0tm^0^0m^*0^0*0m0^^^0^ 


THE  BANK  OF  ENGLAND  RATE  OF  INTEREST. 

The  city  article  of  the  London    Time$^  of  the  7th  instant,  gives  an 

explanation  of  the  motives  for  the  advancing  of  the  bank  rate  to  4^  ptf 

cent,  which  has  attracted  much  attention  here,  and  has  contributed  to  tbe 

rapid  advance  in  the  gold  premium  this  week.    The  7tme«  speaks  with 

an  air  of  positiveness  which,  whatever  may  have  been  its  real  occanon,  is 

construed .  by  many  among  us  as  warranting   the   supposition  that  its 

utterances  are  semi-official ;   and  it  is  this  inference  alone  which  has 

given  its  statements  any  serious  practical  importance.    The  advance  of 

the  rate  is  attributed  entirely  to  a  desire  on  the  part  of  the  Bank  directon 

to  check  the  London  speculation  in  American  securities.    Says  the  writer 

Whether  the  advance  of  the  Bank  rate  to  4i  per  cant  will  erf  ate  prwrare  tod 
distrust  sufficient  to  check  the  ardor  of  those  who  are  placinf;  their  money  on  tbsN 
secnritie?,  is  the  point  to  be  solved.  All  that  can  be  potitively  known  is.  that  if  4i 
per  cent  will  not  fuffioe  the  movement  wtU goon  to  ike  requmie  point,  whether  thet 
voint  te  6  per  cent  or  10  per  cent.  We  cannot  keep  op  tbe  New  York  ioflstioo 
beyood  a  certain  range  any  more  than  we  could  perpetuate  the  London  inflstioo  of 

isee. 

It  w  difficult  to  determine  what  reliance  is  to  be  placed  upon  tbcM 
con6dent  assertions,  and  whether  what  is  said  to  be  **  positively  known," 
represents  official  inspiration  or  private  opinion.  Judging,  however,  from 
the  remarks  of  other  London  journals  upon  the  Times^  article,  it  wooM 
appear  that  its  announcement  was  receiFed  with  much  local  distrust   Tbe 


1869]  THE  BANK  OF   XNOLAND  RATS  OF  XirTXRXST.  429 

coQise  of  the  Bank  managers,  since  the  advance  of  the  6th  instant,  has 
not  been  conSimatory  of  these  vaticinations.  The  advance  of  the  rate 
produced  but  a  momentary  pressure,  which  fell  as  heavily  upon  Consols 
aod  legitimate  discounts  as  upon  Five-Twenties;  and  considering  the 
advance  in  gold,  our  bonds  have  unce  been  more  than  steady  at  London, 
wfaild  probably  not  less  than  $7,500,000  have  been  sent  there  and  to 
Frankfort,  within  the  last  two  weeks.  Moreover,  a  prominent  banking 
boose  has  failed  here,  with  important  connections  in  London  and  on  the 
Continent,  a  iact  calculated  to  excite  distrust  in  New  York  credits. 
These  facts  show  conclusively  that  the  first  turn  of  the  Bank  screw  has 
fkiled  to  efiect  the  object  attributed  to  it  by  the  Times  ;  and  as  two 
weeks  have  elapsed,  with  a  continuance  of  the  bond  movement  and  yet 
without  a  second  '*  twist,**  there  is  good  reason  for  doubting  the  accuracy 
of  its  version  of  the  policy  of  the  Bank. 

The  directors  of  the  Bank  of  England  have  a  weak  conception  of  their 
mlBsion  and  power  if  they  imagine  that  they  can  exercise  any  permanent 
control  over  the  present  investment   demand  for  our  securities.    The 
demand  has  been  stimulated  by  a  real  improvement  in  the  credit  of  our 
Government;  and  it  indicates  that  there  is  a  surplus  of  capital  in  England 
which  selects  this  as  the  most  desirable  form  of  investment.    It  may  be 
true  that  more  than  the  usual  amount  of  Five-Twenties  is  now  being 
^  carried  "  by  London  bankers ;  but  this  is  no  more  than  naturally  results 
from  the  enlarged  legitimate  inquiry,  and  cannot  be  an  element  of  suf- 
ficient magnitude  to  threaten   the  equilibrium  of  the  London   money 
market    When  the  legitimate  investment  demand  ceases,  the  distrusted 
speculation  will  decline.     Moreover,  in  the    matter  of   this   class  of 
secarities,  the  London  market  always   has  a  safety  valve  in  the  Gon- 
tineDtal  markets,  which  are  at  all  times  ready  to  take  them,  when  the 
former  is  over  supplied.    The  interference  of  the  Bank  might  force  a 
certain  amount  of  Five-Twenties  from  London  to  Frankfort,  to  the  loss  of 
the  Exchange  and  the  gain  of  the  Bourse ;  but,  only  for  a  moment,  could 
it  check  the  natural  outflow  of  our  securities,  or  the  speculation  naturally 
attendant  thereon.  We  scarcely  think  the  Bank  managers  need  to  be 
taoght  these  elementary  lessons;    although    their  apparently  too-ready 
fipokesoaan  of  the  Times  may. 


BOH  SB   SlILROADS. 


K-. 


;  ilisi  i  i  i?l 


•  '  ii       -  "I 

Z-  ,4sSSsE85SS|IISSfilSS6fS8ig  ilf sfil  2 

I        s,-?EilB?li;IS.?|!.sll£5lll5i[£-S|5|55!S  j 


S   «         t|°iSeS8SSSS&P8SS;!S=;€SeS8SS8SS:;SSSfl   ■ 

m  I  i  5l;iEi  iS  ,6I§1  ;5S  i  I  ;§  ;i  I :  ;S  H  -1 18811  I 

"It,  sIslSllliSiliSIISIIlii  iSSill  iliSIII  . 

IT-  ij-JIII  I?flis:ii5itl8iil5liii8ill5  f 

■I'S  ■5«|iSSsllS65iEI5|S5!iSSSiSssiE5sll»  ? 


if  ,  ill 


iijlsi, 

i  iS?l  i: 


1869]         AQRIOULTURAL  ■TATIBTICS   OF  THB   UNITED   KINGDOM.  431 


01  THE  AGRICDLTCBiL  STATISTICS  OF  THB  UNITED  KINGDOM. 

BT  JABIEB   CAIRD,    ESQ. 

[Read  before  the  Stat  stical  Society,  March,  1868.] 

I. 

I  hold  in  mj  hand  a  little  blue  book  which  has  cost  the  country  ten 
thousand  pounds,  and  jet  it  is  one  of  the  cheapest  ever  published  at  the 
public  expense.  It  contains  the  agricultural  returns  of  1807,  obtained 
from  nearly  6ve  hundred  thousand  persona,  on  every  fartn,  large  and 
small,  in  Great  Britain  ;  and  the  more  it  is  studied  the  more  clearly  will 
it  show  the  immense  value  to  the  public  of  the  facts  which  it  embraces, 
aad  the  brief  yet  perspicuous  manner  in  which  they  are  presented.  The 
neatest  credit  is  due  to  the  departments  through  which  they  have  been 
gathered — to  the  Inland' Revenue,  by  whose  organization  this  most  exten- 
sive inquiry  has  beeu  conducted,  and  to  the  stHtistical  depar  inetit  of  the 
Board  of  Trade,  by  whom  the  returns  have  been  collated  and  elaborated. 

Twenty  years'  experience  has  now  been  gained  of  free  trade  in  corn.  In 
that  time  we  have  imported  nearly  one  hundred  and  twenty  million  quar- 
ters of  wheat,  which  is  a  yearly  average  four  times  greater  than  that  of 
the  twenty  preceding  years.  Since  1861,  the  annual  imports  of  all  kinds 
of  corn  have  averaged  three  million  tons  in  weight,  equivalent  to  one 
Voyage  of  the  total  tonnage  of  the  United  Kingdom  employed  in  the 
foreign  trade.  The  official  value  of  these  yearly  imports  has  langed 
during  that  short  period  between  twenty  and  forty  millions  sterling.  Of 
the  whole  corn  of  all  kinds  consumed  in  this  country,  we  receive  one- 
fourth  from  abroad,  and  for  the  great  staple — the  staff  of  life — wJieat,  we 
are  dependent  en  the  foreigner  for  one-third  of  our  annual  supply. 

Returns  which  have  given  us  a  basis  of  certainty,  upon  which  to  com- 
pute our  annual  requirements,  and  to  provide  for  them — and  which  will 
tend  to  prevent  panic,  and  sudden  and  unnecessary  fluctuations,  in  inter- 
ests so  vast  and  important — are  indeed  cheaply  purchased  by  so  small  a 
co»t.  It  will  be  my  task  in  this  paper  to  exhibit  their  general  results, 
and  to  show  some  of  the  modes  by  which  they  may  be  used  for  the  public 
advantflge. 

It  may  be  interesting  at  this  point  to  note  in  a  single  paragraph  the 
principal  changes  which  have  taken  place  in  English  agriculture  during 
the  last  three  centuries.  In  the  middle  of  the  sixteenth  century,  beef  and 
pork  were  sold  at  a  halfpenny  a  pound,  mutton  and  veal  at  a  halfpenny 
half  farthing.  The  preamble  of  the  statute  fixing  these  prices,  states  that 
these  "  four  kinds  of  butchers'  meat  were  the  food  of  the  poorer  sort." 


49^  AORlOtTLTtTBAL  STATI8TI08  OT  THB   iriTlTSD  KIKOOOIL  [/t^S^i 

But  there  was  a  scarcity  of  coi*d.    Laws  were  therefore  enacted  against 
throwing  the  land  into  pasture.    The  number  of  sheep  allowed  to  be  kept 
by  one   farmer  was  restricted   to  2,000.     No  corn  was  allowed  to  be 
exported.    An  acre  of  good  land  in  Cambridgeshire  was  let  at  a  shiUiDg. 
A  hundred  years  later  there  seems  to  have  been  a  regular  importation  of 
foreign  corn,  it  having  been  computed  that  £2,000,000  went  out  in  one 
year  to  pay  for  it.    The  high  price  led  to  increaiied  home  production. 
Then  began  a  new  policy.    Not  only  was  the  exportation  of  com  allowed, 
but  it  was  stimulated  by  a  bounty.    A  hundred  yean  later,  in  175S,  com 
riots  disturbed  the  country,  and  continued  during  that  and  the  foUowing 
years,  in  consequence  of  the  high  price  of  com,  alleged  to  be  tfansed  by 
the  bounty  on  its  exportation.    After  that  the  country  passed  through  a 
period  of  protection  against  foreign  corn,  and  a  stimulus  was  thus  offered 
in  a  different  direction  to  its  home  growth.    When  that  policy  finallj 
disappeared  in  1848,  the  great  bulk  of  the  people  had  ceased  to  know 
anythiog  of  butchers*  meat,  except  as  an  occasional  Sunday  luxury.  Now, 
after  twenty  years  of  free  trade,  clear  of  all  stimulus  of  bounty  or  proteo- 
tion,  the  natural  balance  brings  us  round  to  a  position  in  which  every 
country,  according  to  its  own  interests,  has  become  tributary  to  us  for 
the  various  supplies  that  we  require ;  our  own  soil  is  applied  to  the  pro* 
duction  that  each  roan  Ends  most  remunerative ;  and,  partidpating  in  the 
general  welfare,  the  great  body  of  the  people  are  able  to  share,  not  only 
in  the  bread,  but  in  the  meat  from  which  their  fathers  for  three  genera- 
tions were  compelled  to  abstain. 

The  chief  advantage  of  the  returns  is  the  certainty  we  have  thereby 
obtained  of  the  acreage  of  our  various  crops,  and  of  ihe  numbers  of  the 
different  kinds  of  live  stock.  If  we  compare  the  facts  now  aacertaiiwd 
with  the  estimates  most  carefully  prepared  in  1853,  by  that  eminent 
authority,  the  late  Mr.  McCuUoch,  we  find  a  remarkable  agreement  in  the 
total  acreage  of  corn,  but  a  great  difference  in  two  of  the  principal  kinds. 
The  wheat  is  nearly  the  same  in  both — 8,640,000  in  the  returns,  aod 
8,750,000  in  the  estimate.  In  barley  there  is  an  immense  discrepancy, 
eipecially  as  regards  England,  where  2,000,000  acres  are  returned,  and 
1,000,000  estimated.  For  Scotland  and  Ireland  the  error  is  the  other 
way,  388,000  acres  being  returned,  and  750,000  estimated.  In  oats  the 
discrepancy  is  about  1,000,000  acres,  much  of  which  can  be  accounted  for 
by  the  ascertained  diminution  which  has  taken  place  since  1853,  the  daU 
of  the  estimate.  And,  in  regard  to  barley,  there  cannot  be  a  doubt  that  a 
great  increase  «uce  that  time  has  been  made  to  the  acreage,  from  the 
gradually  rising  proportion  which  of  late  years  the  price  of  barley  has 
borne  to  wheat. 

I  cannot  leave  this  part  of  the  subject  without  recording  my 


1S69]  AORIOULTURAL  STATISTICS  OF  THE   UNITED   KINGDOM.  433 

of  the  general  accuracy  of  Mr.  McCulloch's  estimate  of  the  total  acreage 
of  corn,  viz.,  11,470,000,  as  compared  with  11,450,000  shown  by  the 
returns. 

I^  'thing  like  the  same  accuracy  is  to  be  found  in  some  of  the  estimates 
of  live  stock.  In  1836,  the  number  of  cattle  in  the  United  Kingdom  was 
t-stim.Ued  by  one  writer,  quoted  by  a  leading  agricultural  authority,  at 
15,400,000.  The  actual  numbers  now  are  found  to  be  8,700,000.  The 
Fief p  in  Great  Britain  were  estimated  at  48,000,000 :  the  actual  num- 
bers are  28,000,000.  The  pigs  were  estimated  at  18,000,000:  the  actual 
liumbers  are  4,000,000.  In  number  and  value  that  great  branch  of  our 
D  iiional  property,  the  live  stock,  seems  thus  to  have  been  estimated  at 
100  per  cent  more  than  really  existed ! 

The  changes  that  have  taken  place  in  Scotland  and  Ireland  during  the 
1  in  ten  years  are  shown  in  the  returns,  and  are  very  considerable,  the 
acreage  of  wheat  having  dropped  one-half  in  that  period.  The  loss  f 
«'lieat  in  Scotland  has  been  recovered  by  a  nearly  equal  increase  in  barley 
anJ  oats,  but  in  Ireland  there  has  been  a  loss  also  in  each  of  these  crops 
•jf  al'out  a  sixth.  It  is  nearly  compensated  by  a  gain,  during  the  same 
le'i.d,  of  120  000  cattle,  1,000,000  sheep,  and  278,000  pigs.  The  most 
striking  change  recorded  is  seen  by  the  Irish  returns— conducted  so  ably 
t.r  more  than  twenty  years  by  the  registrar  general,  Mr.  Donelly — which 
^Luw  in  the  fullowing  figures  the  production  of  corn  and  potatoes : 

Cora.  Potatoes 
Qra.  Tons. 

HS7.    Total  estimated  J  ield 1I,500,<00  S,600,000 

h-io.        •  «  « 8,800,000  8,00C,00O 

The^e  ten  years  mark  a  great  change  in  the  husbandry  of  Ireland,  the 
tra<iuction  of  corn  having  fallen  nearly  one-fourth,  while  that  of  potatoes 
l:is  declined  one-seventh.  That  a  change  in  the  same  direction  ift^gard 
to  corn  has  been  going  on  in  England,  I  have  no  doubt,  tbougtMot  to 
anything  like  the  same  extant.  But  the  rapidity  and  magnitudc'^df  the 
cLaDges  which  are  now  known  to  have  taken  place  in  the  breadth  of  corn 
^ir.d,  in  Ireland  and  Scotland,  are  most  convincing  proofs  of  the  public 
adraatsge  of  annual  returns  for  the  whole  kingdom.  i 

11. 

Tlie  acreage  having  been  obtained,  the  first  step,  in  reckoning  the  pro- 
dice  o\  the  crop,  is  to  find  the  yield  per  acre  of  an  average  of  years,  and 
C.e  indaence  of  seasons  on  the  yield  of  each  year.  I  here  confine  myuelf 
ij  tlie  yield  of  wheat,  which  is  the  staple  brend  corn  of  the  country. 

No  one  caa  have  studied  this  subjecb  without  being  impressed  with  the 
|;rtai  care  bestowed  on  the  question  by'Mr.  Jacob,  Mr.  Tooke,  Mr.  New- 

3 


I 


484  AGRIOtTLTUBAL  BTATIBTICB   OF  THI  VHITBD  KIFCIDOM.         [Jm€t 

marobi  and  Mr.  McCulloch.    Wbeo,  therefore,  in  putting  forth  so  esti- 
mate of  our  crops  in  1851, 1  felt  myself  obliged  to  differ  from  these  very 
eminent  authorities,  I  yentured  to  do  so  only  from  the  eonviclion  that  the 
extent  of  mj  own   inquiries,  as    Times'  commissioner,  in  nearly  every 
county  in  England,  had  given  me  a  command  of  facts  not   before  acees- 
sible.    Thirty  to  thirty-two  bushels  of  wheat  an  acre  bad  been  scoepu>d 
aa  the  average  produce  of  this  country.    The  facts  I  bad  ascertained  led 
me  to  fix  it,  in  1850,  at  not  more  than  'J  6^, — and,  notwithstandiog  the 
improvements  which  in  the  last  18  years  have  been  made,  I  do  not  believe 
that  the  average  yield  of  England,  at  this  time,  exceeds  28  bushels. 

After  a  certain  point  is  reached,  the  progress  of  average  yield  per  acre, 
is  very  low.    Arthur  Young,  in  1770,  summed  up  the  result  of  his  iDqai- 
ries  at  an  average  of  28  bushels  an  acre.    In  1850  mine  gave  20^,  the 
whole  increase  in  80  years  being  thus  only  3^  bushels.     Cartrful  inquiry 
and  observation  lead  me  to  the  conclusion  that,  in  the  18  years  wbich 
liave  since  elapsed,  it  would  not  be  safe  to  take  credit  for   an  increase 
greater  than  1^  bushel,  and  even  that  is  nearly  twice  the  rate  of  progress 
of  the  preceding  80  years.    We  must  not  forget  that  a  large  portion  of 
the  wheat  land  of  England  is  clay  of  moderate  quality,  as  is  proved  by 
the  fact  that  there  are  still  1,000,000  acres  every  year  in   bare  fallow. 
The  average  produce  of  wheat  in  Ireland  during  the  last  20  years,  bss 
been  found  to  be  a  little  under  24  bushels.    But  even  this  is  higher  thsa 
that  of  any  of  our  European  neighbors,  and  50  per  cent  above  the  aven^ 
of  France.    Taking  the  proportion  of  acresge  in  England  and  Ireland,  I 
find  27  bushels  to  be  the  average  yield  of  the  United  Kingdom. 

The  influence  of  seasons  on  the  yield  is  the  next  step  to  be  considered. 
Its  magnitude  and  effects  are  very  easily  illustrated.  Of  the  last  20  yean, 
1854  and  1863  were  the  most  piolific  seasons;  1853  and  1867  the  worsL 
The  difference  in  weight  and  yield  of  wheat  in  1863  and  1867,  waa  eqosl 
to  14  bushels  an  acre;  1863  having  been  8|  bushels  above  th«  average; 
ani  1867  5^  below  it.    The  result  is  as  follows : 

Gial  of  wheat  and  floor,  18S8 ^640,009,000        £ 

Of  which  paid  for  foreign  oom aylOO^OOd 

Gaslefwbeat  and  floor,  1867 70000,000  

Of  which  paid  for  foreign  com aa,SOQ,0G9 

IMfbrenoe  canted  by  bad  sessoD £80,000,000      £2t,4OO/)00 

Not  only  la  the  price  augmented  to  the  consumer  by  the  whole  amoost 
of  tttis  loeSy  but  nearly  the  whole  of  it  goes  out  of  the  country.  There 
are  vaay  here  more  competent  than  I  to  reckon  its  influence  on  trade 
aad  commerce ;  and  to  estimate  the  value  of  being  early  forewarned,  that 
£IO|OM|000  more  will  be  required  in  a  given  year  to  pay  for  the  bread 


1869] 


AORicuLnmiJ.  mxTisnoB  or  tbe  unit£X>  kikodom. 


435 


coFD  of  the  people,  and  27,000,000  more  gold  be  exported  in  its  purchaie 
from  abroad. 

I  ha?e  framed  the  following  table,  ahowing  the  flactuationa  of  the  aea- 
80Q«,  aod  their  effect  on  the  jield  of  wheat  in  the  laat  20  yeara,  on  the 
ba&is  of  the  experiments  of  Mr.  Lawea,  in  Hertfordahire,  whioh  have 
proved  a  very  aatiafectory  index  of  the  general  yield  over  the  chief  wheat 
producing  area  of  the  lungdom,  and  are  indeed  the  moat  iustmotive  aeriea 
of  facti  for  the  guidance  of  the  BriUah  corn-grower  on  record. 

TMdlBBuhels 

M  niu  or  FiU» 

Ui«  Avenge. 

+   a 

•-.  avenge 


Fint  Cjcle  of  Six  Teaia- 

IMS 

irieldiaBuhele 

JlftinoeorPiaB 
tlie  Avence. 

—  av 

1M9 

_   1* 

18M , 

l36l 

—  a 

Mi 

—  7 

IS53 

—  16 

(ecovd  Cjde  of  Six  Tean 

1854 

>    9 

1S» 

+    1 

IWI 

+    1 

♦    tH 

laba 

Third  Cjcle  of  bix 

1880 , 

18al : 

leaa 

1881 

1884 

icina 

Fon  th  Cjeh^  Cbmmene&meat  of— 

1866 X , 

1887 


—  8 

—  1 

+  IJJtf 

+  i 

—  8 

—  6 


A  careful  consideration  of  these  figures  will  bring  out  many  points  of 
iDterett  affecting  the  revenue  and  wealth  of  the  country,  and  the  comfort 
of  the  people.    For  it  la  well  that  we  should  remember  that  every  requi- 
tita  of  food  or  clothi  g  ia  an  annual  pro  uct  of  tbe  earth,  yielded,  no 
duobt,  to  a  large  degree,  in  proportion  to  tbe  ingenuity  and  indnatry 
•mplojed  on  it  by  man.    But  when  man  haa  done  his  utmost,  the  result 
is  determined  by  ixafiuencea  beyond  hia  control.    In  the  literal  worda  of 
ihe  apostle,  Paul  may  plant  and  ApoUoa   water,  but  God  giveth  the 
bcrease.    Of  thoea  aubatancea  on  which  life  and  health,  day  by  day, 
depend,  there  is  every  year  a  new  production.     There  is  not  a  single  arti- 
cle of  food  and  clothing  that  ia  not,  directly  or  indirectly,  of  vegetable 
growth;  not  accumulated  and  atored  away  in  the  bowelaofthe  earth 
!'ke  oar  mineral  wealth,  but  dependent,  year  by  year,  on  the  aun  and  rain 
JQ  due  season.    If  we  draw  a  line  in  the  column,  beginning  with  1854 
videodiog  with  1866,  we  ahall  find  the  remarkable  faet,  that  in  thoae  12 
Jears  there  were  10  good  harveata  in  Eogland,  and  only  two  below  an 
Average.    Thia  covered  the  whole  period  of  Lord  Palmerston'a  aucceaaful 
sdmiDistration.     During  theae  12  yeara  we  had  to  bear  the  burden  of  the 
Crimean  war,  followed  by  the  Indian  mutiny,  and  the  increaaed  military 
txpenditure  begun  in  1860.    From  1855  to  the  laat  year,  our  annual 
upenditare  baa  averaged  £67,000,000  aa  against  the  £50,000,000  of 
preceding  years,  and  during  that  period  there  has  been  an  actual  diminu* 
tioD  of  taxation  of  from  £5,000,000  to  £6,000,000,  with  no  increase  in 
tbe  national  debt.     Can  it  be  doubted  that  auch  a  run  of  propitiona  aea- 
soBs  aided  ihe  gifted  miniater  who  conducted  the  financea  of  this  country 


486  AGRIOTTLTtTRAL  STATISTIOfi  OF  TH8  UKITKD  KINODOIL        [Jwt^ 

to  meet  succesBfulIy  our  vast  expenditure,  not  onlj  without  MiioQs  pici- 
sure  on  the  people,  but  with  largely  increased  development  of  Him  i&doi* 
try  and  resources  f 

Now,  this  element  of  uncertain  seasons,  against  which  man  ii  power- 
less  to  provide,  is  in  reality  not  so  difficult  to  estimate  in  its  dSects  u  it 
appears.     The  great  bulk  of  wheat  in  this  country  is  produced  along  the 
eastern  and  southern  seaboard,  from  York  to  Deron,  and  the  sdjdniAg 
inland  counties,  extending  over  little  more  than  three  degrees  of  latitI}d^ 
within  which  climate  and  seasons  are  very  much  alike.    Hence  i  f«v 
careful  trials  will  very  accurately  reveal  the  yield  over  the  whole  r^ioiu 
The  annual  trials  of  Mr.  Lawes,  in  Hertfordshire,  which  have  been  cot 
ducted  with  the  greatest  care  for  more  than  20  yeairp,  have  proved  i 
wonderfully  accurate  test  of  the  general  yield  of  the  country.  Tbit 
county  is  a  nearly  central  point  iti  the  wheat  region.     Bat  we  need  not 
limit  ourselves   to  it.     Accurate  trials  of  yield  in  yarious  parts  of  tb 
district  mayl)e  made  by  any  one  who  will  take  the  neeessary  puss;  »d 
according  to  the  care  and  judgment  bestowed,  will  be  the  benefit  denied 
in  an  early  appreciation  of  the  result    As  greater  facility  is  acquired  bj 
experience  in  the  collection  of  the  returns  of  acreage,  we  may  hope  sooi 
to  have  the  facts  published  in  August,  or  early  in    September.  Tbe 
abstract  for  Ireland  was  published  for  1867  on  12th  September.  Tin 
public  will  then  have  only  to  apply  to  that  acreage  their  own  ascertsiarf 
rate  of  yield,  and  the  total  crop  of  the  year  will  be  known.    Oar  ftm^ 
being  first  in  the  market,  and  most  competent  of  all  persons  to  test  tin 
yield,  will  be  in  a  position  to  derive  the  earliest  advantage  from  tbe 
returns. 

Let  us  now  apply  the  preceding  data  to  a  calculation  of  the  yield  of 
the  last  harvest.  By  the  middle  of  September  let  us  suppose  tbst  «i 
have  had  in  our  hands  the  returns  of  acreage.  We  take  examples  froffi 
various  districts  of  the  climate  of  the  year,  and  find,  on  careful  messor^ 
ment  after  threshing,  that  the  yield  of  wheat  has  been  6^  bushels  h^ 
the  average,  but  of  better  than  average  weight,  so  that  the  actnal  del* 
ciency  is  reduced  to  6  bushels  an  acre,  or  21  bushels  instead  of  27,  ss  (be 
yield  of  the  crop  for  1867  for  the  whole  kingdom.  We  apply  t^ese 
figures  to  the  acreage  of  wheat  shown  by  the  returns,  and  find  that  ovr 
last  wheat  crop  will  yield  us  only  0,700,000  quarters. 

m. 

Here  enters  the  question  of  annual  consumption,  for  on  its  amounts:^ 
the  degree  in  which  it  is  affected  by  price,  depends  the  extent  of  our  h^ 
ther  requirements. 

On  this  important  point  in  our  calculations,  I  have  prepared  a  talle  Ci 


ISG9J         AQRICULTUIUL  BTAZZSTICS   OF  TBS   UNITJU)   KINGDOM.  437 

proJDOd  and  imports  for  the  five  years  preceding  1 867,  during  which 
period  the  Irish  returns  show  us  that  the  breadth  of  corn  has  undergone 
liule  rariation.  It  shows  the  fluctuation  of  yield  and  the  total  produce 
of  each  year,  the  foreign  supply  required  and  received  during  the  succeed- 
ing year,  the  average  price  of  that  year^  and  the  total  supply  of  home  and 
fureign  wheat  and  flour  in  each  year  from  1862  to  1867.  To  this  I  have 
added  my  estimate  of  the  produce  of  crop  1867. 

*  ■  "i> 

oc-Sv  Foreign  Avenge 

1^8                                           Supply  Kecieyed  Price 

C^P*    0*0  S'^ Total  Home  Betlinated  darlniC  of  that   m^f.ionn^i- 

|8Sm    Frodnoe.  Reqalre-  6Qccee£ne  Year.    Total  Supply 

K^'o  o,                            meote.  Year^ 

Q^.                Qrs.  Qn.     .  b.    d.  Qn. 

:862....  29f     1»,7U0,000  7.1UU,000  7.2u6.00a  1863....  44     9     20,90^000 

1^'3....  tsi     16,SOO,0'»0  4/0»,0  0  6,727,000,  1864...,  40     2     28,027,000 

IM....  8ii     16,00,000  5,80«V00  6,o29,000  186&....4110     2',o29,000 

l^c5....  29       18,40  ►.OOO  7,4<  0,00  )  6,850,00)  186ti. ...  49  11     2 ',260,' 00 

iSd6....  26i     11,700,000  9.100,0  0  7,288,000'  1867....  64    4     18,983.000 


.  •  • 


88,9v>0,00i)     84.094,000  20,80  ,000 

,  average  of 

1S67....  11        9,700,000  6  years. 

Within  this  short  peri<»d  is  included  1863,  the  very  best  crop  we  have 
Ud  for  20  years,  and  1867,  the  worst  but  one.  It  presents  in  a  verj 
itriking  manner,  therefore,  the  ranc^e  of  fluctuation  in  yield,  supply,  and 
price,  and  if  carefully  studied,  will  show  how  each  afiects  the  others.  The 
iiH  four  years  were  productive,  and,  the  imports  exceeding  our  need, 
fnon  fell  to  the  lowest  point  since  1853.  In  18b6  the  crop  if  as  inferior, 
the  price  began  to  rise,  and  imports  at  once  increased.  But  not  at  once 
to  the  extent  of  our  requirements,  which  were  met  by  the  accumulation  of 
itock  during  the  previous  abundant  years.  These  had  been  nearly 
vorked  out  when  the  very  deticient  harvest  of  1867  was  reaped. 

A  glance  at  the  table  will  show  the  rapidity  of  the  changes  in  our  home 
iQpplj  and  requirements,  and  will  tend  to  confirm  the  accuracy  of  my 
fttatemeot  of  the  average  yield.  It  shows  us  that  the  average  yearly  con^ 
lamptioD  of  the  country  during  the  last  five  years  has  been  20,800,000 
quarters. 

To  what  extent  is  that  affected  by  price  f  On  this  point  I  had  the 
adrantage  of  hearing  the  opinion  of  Mr.  Newraarch,  lately  expressed  in 
tiiii  room,  in  which  I  generally  concur.  It  was  to  the  effect  that  the  con- 
^roption  of  bread  is  very  constant,  that  everything  is  given  up  before 
bread,  and  that  bread  being  the  staff  of  life,  it  must  be  had  by  the  people 
vbaUver  t^e  price  may  be.  This  view  is  confirmed  by  inquiries  which  I 
lisve  aioce  made  among  some  of  the  leading  bakers  in  the  most  densely 
P^pled  quarters  of  Wbitechapel  in  the  east,  and  the  Harrow  Road  in 
lli6  northwest,  one  of  whom  has  been  80  years  in  business,  and  has  now 


488  AGBIOULTURAL  BTATISnOB  OF  TBI  VNXTSD  XDIGDOIL         [/■"«, 

three  shops  in  a  district  entirely  inhabited  by  the  world  g  cliMes.  Their 
testimony  is,  that  the  consumption  of  bread  at  present  is  very  large,  for 
although  dear,  it  is  still  the  cheapest  article  of  food  within  reach  of  the 
poor ;  the  next  substitute,  potato  s,  being  scarce  and  very  dear.  Still  I 
feel  persuaded  that  price  has  some  influence,  and  that  the  rise  on  tb« 
quartern  loaf  of  household  bread  from  d^-d.  in  1864,  to  9d.y  the  present 
price,  roust  produce  some  effect  on  the  total  oonsi»mption.  With  tbsl 
belief,  I  will  assume  that  every  10  per  cent  of  additional  price  on  the  W, 
diminishes  the  consumption  by  at  least  one  per  cent. 

Having  now  ascertained  the  produce  of  the  last  crop,  the  aver*^ 
yearly  consumption,  and  the  probable  lat-'  of  economy  caused  by  higb 
price,  we  are  in  a  position  to  fix  with  as  great  a  degree  of  certainty  as  it 
necessary  for  all  practical  purposes  the  supplies  which  the  country  will 
nee<?  till  next  harvest.  The  only  other  points  affecting  tlie  calculation, 
are  the  amount  of  old  stock  in  hand  from  previous  harvest  and  imports, 
and  the  length  of  time,  varying  between  lit  and  12^  months,  over  whi^ 
the  pressure  may  extend  before  a  new  harvest  can  be  reaped.  These, 
however,  are  questions  that  will  no(  greatly  affect  the  price  for  the  wbols 
year,  though  they  may  cause  fluctuation,  and  I  think  government  ougbt 
not  to  offer  any  opinion  on  thitf,  but  leave  it  to  the  market.  For  thd 
same  reason,  because  it  will  to  a  certain  extent  be  matter  of  estimate, 
government  may  very  well  leave  all  parties  interested  to  aaoertaio  for 
themselves  the  relative  yield  of  each  harvest,  aud  to  act  as  each  sees  fit 
on  his  own  sources  of  information. 

My  view  of  the  last  crop,  and  of  our  probable  requirementa  and  sup- 
plies for  the  present  year,  is  as  follows : 

Oil. 

Average  amoal  eonnamptioo .  •  •  • • SOi.eoo.009 

Home  prouoee of  18S7 ••••.••• f/(O.O0e 

11,100^009 
Old  f  took  on  band  alsioit  exhausted,  and  theref  re  no  dedoetioo  can  be 
safely  made  on  acoonot  of  it. 

Qrf. 

Ecciiomy  in  conpamption  eauaeH  by  high  prtee,  6  per  eeot 1,040,000 

Eight  diva*  oonaumptioo,  saved  bv  latenaaa  of  last  harvest . . .  •     4t»0,000 

1^0,600 

Foreign  supply  reqni  ed 9^00,000 

This  is  at  the  rate  of  800,000  quarters  monthly. 

Six  months  of  the  harvest  y^ar  have  now  passed,  during  wbicb  oar 
supplies  have  amounted  to  nearly  5,000,000  quarters.  Thus  far,  therefore, 
the  imports  woul  1  appear  to  have  equalled  our  requiremeol«.  And  if 
my  computations  are  well  founded,  the  balance  required  during  the  six 
months  till  next  harvest,  is  about  4,600,000  quartera.    This  is  a  monthly 


• 


1869]  AGRICULTURAL  BTAnSTIOB  OF  THK  UNITBD  KINaDOM.  439 

rate  of  765.000  quarters,  or  tomewbat  leae  than  the  rate  at  which,  during 
the  last  six  montiis,  the  high  prices  ruling  have  brought  us  foreigo  com. 
Id  the  corresponding  six  months  of  1  st  year,  our  foreign  imports  exceeded 
700,000  quarters  monthly,  when  the  price  of  the  preceding  six  months 
was  lOs.  less  th^n  at  present  I  think,  therefore,  that  no  apprehension 
need  ha  felt  as  to  adequate  supplies  till  next  harvest. 

It  will  be  interesting  to  consider  here  the  rate  of  price  which,  in  the 
p^st  20  jearR,  has  been  found  sufficient  lo  draw  out  supplies,  and  then  to 
complete  this  question  by  a  short  consideration  of  the  sources  whence  we 
draw  our  ^nnu-il  supplies. 

In  regard  to  the  price,  the  first  consideration,  next  to  our  own  crop,  is 
the  character  of  the  harvest  in  France.  As  a  general  rule,  the  seasons 
which  are  favorable  or  otherwise  for  England,  are  so  also  for  France.  In 
a  iroo(\  season,  when  we  least  require  it,  she  gives  us  of  'her  abundance, 
but  we  have  to  meet  her  as  a  competitor  in  the  world^s  market,  when,  as 
io  the  las^  season,  the  crops  in  both  countries  are  heavily  deficient. 

The  worst  harvest  we  have  had  in  20  years  was  1853,  following  a  defir 
cient  harve^^t  in  1852.  The  deficiency  of  the  home  crop  in  1853  was 
twice  SA  great  as  that  of  1867,  but  an  average  of  72».  fid.  in  the  following 
yeir,  brought  us  sufficient  supplies.  1860  and  1861  were  short  crops, 
but  an  average  of  558.  6<).  sufficed  to  draw  supplies.  Since  1861  the 
cT.>p3  have  been  above  an  average,  till  1866,  when  the  seasons  changed, 
and  the  crop  vias  short,  and  1867,  following  on  that,  is  the  worst  we  have 
bad  since  1858.  The  pressure  has  been  increased  by  the  short  crop  of 
potatoes  and  their  high  price,  and  by  the  bad  harvest  in  France,  and  gen- 
erally in  Western  Europe.  Bnt  up  to  this  date  our  supplies  have  been 
amr.le,  and  we  have  some  comfort  in  the  pro.<«|>ect  of  the  next  crop,  which 
wa!(  sown  in  one  of  the  best  seed  times  known,  <»nd,  under  the  inducement 
cf  the  high  price  at  that  time,  on  a  largely  increased  breadth  of  land. 

IV. 

Some  iostruotive  tables  are  given  in  the  returns,  showing  the  area  and 

crops  of  the  various  countries  whence  we  draw  our  chief  supplies  of  com 

The  Board  of  Trade  tables  furnish  the  imports.    The  following  figures,  in 

their  order,  give  the  proportions  in  which  the  various  countries  during 

the  12  years  ending  with  1806,  have  contributed  to  our  wnnts  in  wheat* 

Per  0<)nt. 

United  St stes 8  s 

G^TiDAoy • 8> 

Rawia. 17 

France 1  i 

Egvpl      •••.« •• 6 

0;ber  countries l* 

lOU 


440  AGRICULTURAL   BTATI8TICS   OF   THJB   UKIT&D   KHrODOH.         [/«My 

The  most  dietant  region  in  the  list  gives  us  more  than  one-third  of  the 
the  vholp.    The  crop  reaped  on  the  prairies  of  the  Mississippi  finds  its 
^»  1,000  miles  to  the  seaboard,  and  is  then  transported  3,000  miles  by 
sea^  has  to  bear  all  the  cost  of  a  double  transhipment,  the  profits  and  com- 
missions and  charges  of  the  various  persons  through  whose  hands  it  must 
pasp,  and  the  final  duty  of  Is.  a  quarter,  before  it  comes  into  competition 
vrith  the  home-grown  crop.     It  is  not  many  years  since  men  could  prove 
that  the  cost  of  a  certain  limited   number  of  miles  of  transport  would 
exhaust  the  entire  value  of  corn,  and  that  the  raqge  within  which  it  wss 
procurable  for  our  wants,  must  be  th^^refore  comparatively  limited.    Tbe 
extension  of  railways,  the  widening  of  canals,  the  use  of  steam  elevators, 
And  the  ingenuity  an^  enterprise  of  the  American  people,  have  wonder- 
fully extended  that  limit.     Russia,  also,  already  a  large  contributor  to  u^ 
will  by  the  same  meant  have  her  great  plains  brought,  year  by  year) 
!more  within  reach  of  Western  Eurr.pe. 

So  widely  spread  are  the  sources  of  supply,  that  it  is  difficult  to  conoeiTS 
any  circumstance,  but  one,  that  could  seriously  affect  us.  We  have,  in 
the  period  to  which  I  refer,  had  a  war  with  Russia,  during  two  years  of 
which  there  was  a  total  suspension  of  Russian  supply.  But  Egypt  and 
Spain,  in  those  years,  made  up  the  whole  of  the  deficiency.  It  has  never 
hpppened  that  all  the  countries  have  had  a  bad  season  at  the  same  t!m€. 
If  Western  Europe  fails,  America  or  Egypt  is  prolific.  In  1856  France 
could  spare  us  only  30,000  quarters,  but  America  gave  us  2,300,000.  la 
1859  America  sent  only  100,000,  but  France,  ttie  same  year,  close  upon 
2,000,000.  For  the  next  four  years,  all  through  the  war  to  the  end  of 
1864,  America  was  blessed  with  bountiful  harvests,  and  poured  upon  us 
her  superabundance,  with  little  reference  to  price ;  and  during  these  yesn 
France  had  very  little  to  spare.  But  iu  1865  and  1866  seasons  changed 
again — America  fell  to  30,000  quarters,  and  France  rose  to  nearly  2,000^- 
000. 

The  one  circumstance  which  might  seriously  affect  us,  would  be  a  con- 
tinued cessation  of  supplies  from  America.  Of  the  11,000,000  quarters 
we  imported  in  1862,  she  gave  us  five;  and,  as  the  figures  show,  we  hsre 
received  for  many  years  from  her,  on  tbe  average,  more  than  one-third  of 
our  yearly  supply.  In  cotton,  an  import  second  only  in  necessity  and 
yalue  to  corn,  she  gives  us  more  than  two-thirds  of  all  we  receive.  Let 
us  hope  that  intereBts  so  great  and  so  mutually  beneficial  as  those  which 
bind  together  the  two  great  Anglo-Saxon  races,  on  opposite  sides  of  tbe 
Atlantic,  may  be  more  and  more  cemented  by  acts  of  mutual  confideoce 
and  eood  will. 

How  vast  her  capacity  for  export  may  become,  i*  is  impossible  to  coo- 
jecture.    From  the  official  returns  of  her  last  wheat  erop,  rery  little  of 


1869]  AGRICULTURAL  STATISTICS   01*  THE   UNITED   KINGDOM.  441 

which  can  have  jet  reached  us,  she  could,  after  retainiDg  enough  for  her 
own  coosumption,  spare  us  one  half  of  all  we  shall  this  year  require.  She 
produces  auDuallj  upwards  of  100,000,000  quarters  of  Indian  corn. 
lodeed,  so  great  and  so  constant  is  the  yield  of  this  prolific  grain,  that 
there  may  be  said  to  be  practically  no  limit  to  the  supply  which  in  any 
year  a  sufficient  price  could  bring  into  the  maiket. 

The  effect  of  good  or  bad  seasons  is  more  intensely  felt  in  all  the  chief 
com  countries  than  in  our  own.  This  arises  from  pur  higher  average  rate 
of  produce,  and  the  consequent  smaller  extent  of  surface  at  the  mercy  of 
the  seasons.  A  bushel  an  acre,  above  or  below  the  average,  makes  a  dif- 
ference to  us  of  less  than  500,000  quarters  in  the  total  yield.  In  th& 
Uaited  States,  each  bushel  indicates  1,500,000  quarters,  and  in  France 
upwards  of  2,000,000  quarters  of  variation.  Hence  the  suddenness  and 
seventy  of  the  fluctuations  in  those  countries,  as  shown  by  their  exports 
to  us. 

I  cannot  leave  this  part  of  the  subject  without  noticing  the  extremely 
low  average  yield  of  wheat  in  France.  She  stands  lowest  in  the  scale 
England  I  have  stated  at  28,  Ireland  is  24,  Austria,  Spain,  and  Holland 
23,  Belgium  21,  and  France  onlj  15^  bushels  an  acre.  If  this  is  a  correct 
sUtement  of  the  yield  of  France,  her  average  rate  of  produce  is  less  than 
that  of  the  very  worst  crop  in  England  during  the  last  20  years.  It  isr 
indeed,  precisely  the  same  as  the  yearly  average  produce  of  Mr.  Lawe's 
experimental  plot,  on  which,  for  24  years  in  succession,  he  has  grown 
'<*beat  without  manure. 

Id  1855,  while  travelling  in  France,  my  attention  was  drawn  to  the 
very  low  rate  of  her  acreaj^e  yield  of  wheat,  as  compared  with  ours,  and 
after  publishing  my  own  views  on  the  question,  I  had  an  opportunity  of 
(liscu&siog  them  with  the  eminent  French  statist,  M.  Leonce  de  Lavergne, 
who  agreed  with  me  that,  apart  from  the  difference  in  soil  and  climate,  it 
is  probably  to  be  accounted  for  by  the  fact  that,  while  our  grass  and 
green  crops,  or  restorative  area,  are  as  two  to  one  of  our  corn,  France  is 
eiactly  the  reverse,  her  com  or  exhaustive  crops  being  as  two  to  one  of 
her  grass  and  green  crops.     But  she,  too,  is  becoming  more  meat  produc- 

fl 

iQg,  and  the  margin  she  has  to  fill  up,  by  increase  of  yield,  is  to  wide, 
tUt  a  rise  of  only  half  the  space  between  her  present  yield  and  that  of 
Etigland,  would  enable  her  to  spare  a  surplus  greater  than  we  have  ever 
jet  required  from  all  foreign  countries  in  a  single  year. 

V. 

Having  thus  endeavored  to  explain  what  I  conceive  to  be  the  main 
Take  of  these  returns,  in  affording  a  basis  for  reckoning,  with  accuracy, 
u<l  at  an  early  period,  the  suppliea  of  com  needed  for  our  consumption^ 


442  AORICULTI7IIAL  BTATISTI08   OF  THB  UNITSD   KIHGDOII.         [Jnut^ 

and  having  dwelt  with  some  minuteness  on  the  yanoas  elernenU  wMch 
ought  to  he  taken  into  the  calculation,  I  will  now  touch  on  the  other  great 
hranch  of  our  agricultural  wealth — the  live  stock  ;  and  then  brit;fl\  cud- 
aider  certain  changea  in  our  agricultural  management,  reve-^lK)  hy  the 
returns,  which  hare  naturally  flowf^d  from  the  adoption  of  free  trade. 

Tlie  returns  of  live  stock  having  heen  made  at  diflferent  periods  of  the 
year,  do  not  yet  help  us  in  speaking  with  certainty  as  to  how  f^r  the 
losses  hy  cattle  plague  have  been  made  good.  Up  to  October,  1867,  «heD 
the  plHgue  had  died  oat,  about  130,000  cattle  had  died,  an.i  67  000 
healthy  cattle  had  been  killed  to  prevent  the  spiead  of  the  disease.  Tne 
returns  show  an  increase  of  161,000  cattle  in  18o7  over  tht*  precKiing 
year.  So  far  numbers  go,  therefore,  the  nctual  deaths  by  disease  wiiold 
appear  to  have  been  fully  made  good.  But  until  another  year's  return  it 
made  from  the  same  period  as  1867,  we  cannot  depend  on  the  tigirei 
representing  the  same  comparative  data.  A  like  remark  is  even  » ore 
applicMble  to  sheep,  the  figures  in  the  vear  1867  being  to  a  large  de^eree, 
swelled  by  including  lambs  born  at  a  date  sub>equent  to  that  of  the  rtturoi 
of  18<)6. 

They  enable  us,  however,  to  reckon  the  approximate  number  and  valae 
consumed  as  food,  and,  along  with  the  returns  of  crop,  to  compare  the 
value  of  our  entire  agricultural  produce  with  the  foreign  supply.  Astbis 
is  a  point  of  the  greatest  interest  and  importance,  I  have  compiled  a  table 
mih  as  much  care  and  consideration  as  1  can  command,  f^howin*;  the 
average  amount  and  value  of  the  whole  agricultural  produce  of  the  United 
Kingdom,  consumed  annually,  the  value  of  the  same  articles  received 
from  abroad,  and  the  proportion  in  which  the  total  supply  is  coutributed 
by  the  foreigner : 

PropfvrTiMef 
Home  Proinee.         Foreign  Supply.  Jrot*  i^_ 

toTouispptr. 

Com  of  all  kinds £84.700,0  0  £25,00^000  Oae-fuarth. 

Beef  and  mottoo 47,200,00  i  s,600.0  »0  Ooe-MiDth. 

Butter  and  cheese 80,100,000  8,40  ,0<  0  Ooefitik. 

Potatoes 18,<00,0  0  20^•H0  

£180,000,000  £40,100,000  One-Sftk 

To  these  must  be  added  the  annual  product  of  wool,  £8,000,000,  sod 
of  flax  £2,000,000  sterling,  but  these  entei  into  the  manufacturing  indus- 
try of  the  country,  and  do  not  come  within  our  present  inquiry.  There 
is  no  return  of  horses  for  Great  Britain,  and  they  cannot  therefore  be 
Deluded ;  and  the  pigs  are  comprised  in  the  meal  and  potatoes. 

The  home  produce  is  thus  supplied  by  each  of  the  three  divisions  of  the 
kingdom : 


1869]  AORIOtTLTUIUL  SrATIBTIOS   Or  THK  UNITSD  KIKODOtf.  443 

BngrtftDd.  Scotland.        Ireland.  Total. 

Vlmii £28^0(,000  £900,000  £',100.000  £81,600,000 

Barl«y 1 6.400.0<>0  2.^00/  00         1 .200,0  0  20,400.000 

Oit« .       10,900000  6,200,000         8,600,000  26.700.<  00 

Beam,  peaa,  and  rye 6,6  0,000  860,000              60,0('0  7,0  O.OOO 

PoUtiiet      4.100,000  1,900,000  12.000,000  18  000,000 

Cattle  and  dairy  prodnee        82,600.000  6  600,O' 0  19,0.000  ^8,600,000 

She^p  and  wool 18,400/  00  4,400,000         4,  00.000  2*',^'00.000 

Flax 2.000,000  2.000,000 

£n7,800,0<'0     £28,^^60,000     £49,660,000    £l  0,000,000 

And  in  the  following  proportions  in  each  country  per  head  of  the  popu" 
lafioD,  and  per  head  of  the  persons,  according  to  the  census  of  1861,  pos- 
sessing or  working  the  land,  and  engaged  in  its  cultiyation  : 

*^— Fagland         ^      r— — 8«otla»»<'.— -%      t-        -Ireland.  > 

.  Per  Per  Per 

Per  Bead.   Producer.   Per  Head.  Proctnoer.     PerHe%d,   Prolaeer. 

£  %.  d,  £      §,  £    §,  £  §.  £  §.  d.  £  <• 

Com 2  18  6  82     2  8     6  80  .  2     8.  12  16 

Otttle  and  sheep  •...     276  2tt8  89  81  6  448  96  6 

Potatoes 4  .  2     2  12  6  9  8    8.  12  16 

£6  10  .     £60  !2        £7     6     £66  16        £8  17  6     £62  17 

Tfaoagh  these  figures  are  offered  only  as  an  approxinaate  valuation,  they 
sre  interesting  as  indicating  the  relative  results  of  agriculture  in  the  three 
divisiona  of  the  kingdcro,  and  the  important  share  which  Ireland,  even  in 
ber  present  depressed  condition,  contrihutes  to  the  whole  supply  of  food* 

The  foreign  produce  in  greatest  s*jpply,  is  that  which  can  bear  longest 
carriage,  and  can  be  packed  in  least  bulk.  Whilst  we  receive  one-fourth 
of  our  com,  cheese,  and  salt  butter  from  abroad,  the  foreigner  s^nda  us,  as 
yet,  only  one  ninth  of  our  meat,  and  one  ninetieth  of  oui  potatoes.  Those 
who  «*an  recall  the  controversies  of  20  years  ago,  on  the  probable  effects 
of  free  trade,  will,  I  hope,  pardon  me  for  introducing  a  passng^  written  by 
me  at  that  time,  in  which  I  then  ventured  to  speculate  on  the  probable 
effect  of  free  trade  on  British  agriculture  :  **  As  the  country  beoones  more 
prosperous,  the  difference  in  the  relative  value  of  corn  and  stock  will 
gradually  be  increased.  The  production  of  vegetables  and  fresh  meat 
hay  for  forage,  and  pasture  for  dairy  cattle,  which  have  hitherto  be^n  con 
fined  to  the  neighborhood  of  towns,  will  necessarily  extend  a^  the  towns  be- 
come more  numerous  and  populous.  The  facilities  of  communication  must 
incresse  this  tendency.  Our  insular  position,  with  a  limited  territory,  and 
an  increasingly  dense  manufacturing  population,  is  yearly  extending  the 
arcle  within  which  the  production  of  fresh  food — animal,  vegetable,  and 
forage — will  be  needed  for  the  daily  and  weekly  supply  of  the  inhalritants 
Md  their  cattle,  and  which,  both  on  account  of  its  bulk,  and  the  necessity 
of  having  it  fresh,  cannot  be  brought  from  distant  countries.  Fresh  meat 


444  AOUICULTURIX  BTATISTIOS   OW  THE  XJVTTSD  KIHODOM.         [/llJM, 

milk,  butter,  vegetables,  and  hay,  are  articles  of  this  description.    They 
can  be  produced  in  no  country  so  well  as  our  own,  both  climate  and  toil 
being  remarkably  suited  to  them.    Wool  has  likewise  increased  in  tsIm 
as  much  as  any  agricultural  product,  aid  there  is  a  good  pro»peet  of  flu 
becoming  an  article  of  extensive  demand,  and  therefore  worthy  of  the 
fiurmer^s  attention.    The  manufacture  of  sugar  from  beet-root  may  yet  be 
found  very  profitable   to  tbo  English  agriculturist,  and  ought  not  to  be 
excluded  from  connderatien..    With  the  great  mass  of  consumers,  bread 
still  forms  the  chief  article  of  consumption.    But  in  the  manufacturing  dis- 
tricts, where  wages  are  good,  the  use  of  butchers'  meat  and  cheesa  is  eoor- 
mously  on  the  increase ;  and  even  in  the  agricultural  districts,  the  laborer 
does  now  occasionally  indulge  himself  in    a  meat  dinner,  or  i^aaon  hi* 
dry  bread  with  a  morsel  of  c^eeie.    Among  the  better  classes,  who  ca^^ 
afford  it,  the  expenditure  lA  articles  the  produce  of  grass  and  green  crops,  ^' 
is  nearly  nine  times  as  great  as  in  corn. 


#M 


''  This  is  the  direction  in  which  household  expenditures  increases  whes  k 
the  means  permit.  It  is  reasonable  to  conclude  that  the  great  mass  of  ^ 
the  consumers,  as  their  circumstances  improve,  will  follow  the  same  rale. 
The  only  species  of  corn  which  has  risen  materially  in  price  since  1770  ii 
barley,  and  that  is  accounted  for  by  the  increasing  use  of  beer,  which  is 
more  a  luxury  than  a  necessary  of  life,  Every  intelligent  former  ought 
to  keep  this  steadily  in  view.  Let  him  produce  as  much  as  he  can  of  the  ^ 
articles  which  have  shown  a  j^radual  tendency  to  increase  in  value." 

Writing  now,  with  the  additional  experience  of  18  years  of  free  trade 
in  corn,  I  can  do  no  better  than  repeat  that  advice.  The  great  maigia 
still  to  be  filled  up  by  our  own  farmers  is  the  daily  supply  of  fresh  mest, 
fresh  dairy  produce,  vegetables,  and  barley.  Since  1850  the  price  of 
bread,  on  the  average,  has  remained  the  same,  while  that  of  meat,  dairy 
produce,  and  wool  has  risen  50  per  cent,  notwithstanding  an  immense 
and  increasing  import  of  these  articles.  This  and  the  steadily  advandBg 
price  of  barley,  to  which  I  then  referred,  is  the  true  explanatiop  of  increas- 
ing rents  and  agricultural  prosperity*  notwithstanding  increasing  receipU 
of  foreign  corn. 

In  the  produciion  of  barley,  as  in  that  of  long  lustrous  wool,  this  oouo- 
try  is  still  without  a  rival.  Since  1835,  when  tithes  were  commoted  into 
a  money  payment,  the  average  value  of  the  three  kinds  of  com  together 
has  not,  on  the  whole,  altered  ;  but  the  price  of  wheat  has  fallen  13  per 
cent,  while  barley  has  risen  8,  and  oats  4.  The  growth  of  barley  in  this 
country  has  nearly  doubled  in  extent  within  the  last  20  years.  While  it 
yields  ihe  largest  weight  per  acre  of  any  kind  of  corui  it  seems  the  least 
exhaustive  to  the  soil,  and  leaves  it  in  the  best  condition,  as  it  ooeupies  the 
ground  for  the  shortest  period  from  seed  time  to  maturity* 


1869]  AOUOTTLTDRAL  8TATI8TICB   OV  TBB  TTNITSD  KINODOtf.  446 

VL 

I  come  now  totbe  application  of  my  paper  by  the  question,  how  much 
do  these  vast  supplies  yield  to  the  daily  wants  of  the  people,  in  what  pro. 
portions  are  they  distributed  among  them,  and  what  modifications  seem 
probable  in  our  system  of  husbandry  ! 

Writers  on   dietetics  tell   us  that  one  pound  of  bread,  one  pound  of 
potatoes,  and  one  pound  of  meat  are  required  for  the  minimum  of  daily 
healthy  diet.     I  have  computed  the  amount  of  all  our  supplies,  home  and 
foreign,  of  wheat,  potatoes,  and  meat,  have  converted  the  wheat  into  flour, 
and  the  flour  into  quartern  loaves,  and  I  find  that  if  our  bread,  potatoes 
and  meat  were  equally  spread  over  the  population  of  the  United  King- 
dom, the  present  supply  would  give  one  pound  of  bread  and  one  pound  of 
potatoes,  but  only  two  ounces  of  meat,  and  the  equivalent  of  one  ounce  of 
butter  or  cheese  daily  to  each  person.     But  it  is  not  equally  spreal,  the 
proportions  in  Britain  and  Ireland  being  really  very  diflerent.     The  people 
^Q  England  and  Scotland  have  among  them  a  pound  and  a  quarter  each 
otI>read,and  half  a  pound  of  poUtoes  a  day;   the  people  in  Ireland  four 
Afi^^  half  pounds  of  potatoes  each,  and  only  a  quarter  of  a  pound  of  bread. 
^  Whilst  there  is  ibus  in  Ireland  still  far  too  great  a  dependence  on  the 
ptato  for  food,  there  would  seem  to  be  room  in  England  for  some  addi- 
tional supply  of  that  esculent,  so  wholesome  as  a  portion  of  diet.     The 
home  supply  might  be  increased  with  great  advantage  to  the  consumer  by 
the  extension  of  potato  husbandry  on  suitable  soils,  in  all  English  coun- 
ties, near  the  seats  of  large  populations. 

The  proportion  of  population  in  various  European  States  to  each  acre 

of  potatoes,  and  therefore  the  degree  of  their  dependence  on   it  for  food 

affords  a  tolerable  indication  of  their  material  prosperity.     They  stand  in 

the  following  order:  England  66  people  to  each  acre  of  potatoes  ;  Wales, 

16;  Scotland,  20;  Denmark,  20;  Belgium,   13i;  Holland,  13;   France, 

12^;  Sweden,  12;  Prussia,  5^,  Ireland,  5^.     Prussia  and  Ireland  thus 

stand  out  pre-eminently  as  potato  countries.    They  have  consequently 

suffered  the  most  severely  by  the  disease  of  that  root,  and  the  emigration 

from  both  countries  has  been  greater  than  from  all  other  European  States. 

But,  notwithstanding  the  past,  so  great  is  the   temptation  presented  by 

this  prolific  root  to  the  necessities  ot  a  poor  population,  that  its  culture  in 

Ireland  within  a  very  few  years  after  the  famine  rapidly  revived,  and 

at  this  moment  the  production  of  potatoes  in  proportion  to  the  diminished 

numbers  of  the  people,  and    their  dependence  on   it   for  their   food,  is 

almost  as  great  as  it  was  before  1845. 

lo  Prussia,  the  production  of  potatoes  is  also  enormous,  but  the  root  is 
not  used  as  in  Ireland,  solely  as  an  article  of  food.  The  German  excise 
regoUtions  are  framed  as  to  admit  of  greater  freedom  of  action  on  the 


446  AORIOULTURAL  STATISTIOS   09  THB   VVTtKD  HHODOM.         |/««e, 

part  of  the  farmer,  who  is  thus  enabled  to  unite  with  his  agricaUure  tbs 
business  of  distillation.  He  extracts  the  spiriu  for  sale,  and  retwas  oo 
his  farm  the  other  feeding  properties  which  his  roots  possess.  Two  mil- 
lion  tons  of  potatoes  are  thus  annually  disposed  of  in  Qeruiany.  German 
spirits  find  their  way  all  over  Europe,  and,  notwithstanding  the  enormoaa 
rate  of  duty  to  which,  in  common  with  the  spirits  produced  in  those  ooun* 
tries,  they  are  everywhere  subjected,  the  business  thrires  and  increases. 

All  oar  root  crops  contain  varying  proportions  of  sugar,  which  in  many 
eases  might|  in  one  form  or  another,  bo  extracted  with  advantage  on  the 
farm ;  the  other  qualities  of  the  root  being  used  for  cattle  food.  But  the 
stringency  of  our  excise  laws  has  hitherto  prevented  every  attempt  so  to 
utilise  it.  Now  the  British  Islands,  and  Ireland  especially,  are  pre-emi* 
nently  fitted  for  the  production  of  root  crops  and  barley.  Why  should 
they  be  restrioted  in  the  conversion  of  these  to  the  most  profitable  ussf 
The  time  seems  to  have  come  for  a  reconsideration  of  our  excise  laws,  and 
for  the  substitution,  if  it  be  possible,  of  such  a  system  of  levying  duties  as 
ahould  leave  to  the  producer  the  most  perfeet  freedom  for  the  fulM 
development  which  skill    nd  capital  might  enable  him  to  make. 

In  the  extract  already  read,  reference  was  made  to  flax  and  to  sugsr,  ai^ 
articles  likely  to  form  a  future  object  of  culture  to  the  British  farmer 
Flax  has  now  attained  considerable  importance  in  Ireland,  the  annual 
value  of  the  home  growth  in  recent  years  exceeding  £2,000,000,  or 
nearly  one-half  of  the  total  value  used  in  that  important  branch  of  our 
manufactures.  Sugar  from  beet  was  tried  in  Ireland  20  years  ago,  but 
failed,  chiefly  for  want  of  the  necessary  arrangements  to  carry  o«it  the 
extraction  and  purifi^sation  of  the  juice.  The  question  has  this  year  besn 
revived  by  some  persons  a^  a  remedy  for  the  ills  of  Ireland ;  by  others  as 
a  branch  of  national  industry,  which,  if  it  succeeds,  will  be  alike  advso* 
tageous  to  the  agricultural  interests  of  the  United  Kingdom,  and  to  ths 
consumers  of  sugar.  The  steady  and  oontinuous  extension  of  beet-root 
sugar  on  the  oontinent,  within  recent  years,  sufficiently  proves  its  remo- 
neraUve  character,  for  wherever  the  culture  has  been  established,  the 
employment  and  wages  of  labor  have  been  increased,  the  number  ssd 
quality  of  fattened  cattle  have  augmented,  and  the  land  has  become  mon 
productive  and  more  valuable.  Having  b  en  consulted  as  to  the  most 
suitable  county  in  which  to  make  a  beginning  in  England,  I  examined  the 
agricultural  returns,  and  suggested  Suffolk,  that  county  being  the  most 
extensive  producer  of  mangold  near  the  metropolis.  And  I  am  glad  to 
be  able  to  announce  that  arrangements  have  now  been  completed  to  tiy 
the  experiment  in  that  county,  this  year,  on  a  scale  sufficiently  laige  to 
test  its  probably  success. 

I  might  now  proceed  to  many  most  interesting  points^  affectiag  i^ncal- 


1869 1  WATBBINa   RAILROAD    OAPITAU  447 

tore,  disclosed  by  these  returns — snch  as  the  relative  productiveness  of 
dinricts  of  large  and  small  farms,  of  corn  and  grass,  of  sheep  and  cattle^ 
of  dairy  husbandry,  of  the  course  of  crops  in  particular  districts,  of  the 
imporuiDce  and  wealth  of  certain  counties  as  compared  with  others,  the 
exteot  of  farms  as  influenced  by  climate  and  soil,  on  all  of  which  the  most 
TalQ^bla  information  is  afforded.  But  these  questions  must  be  lefl  to 
other  Initorers,  or  to  another  time.  Suffice  it  now,  in  conclusion,  to  say 
that  ibe  effect  of  free  trade  on  the  food  of  the  people  of  this  country  has 
been  to  moderate  the  price,  and  immensely  increase  the  supply  of  food. 
And  for  my  own  part,  I  feel  thankful  that  in  the  House  of  Commons  I 
was  the  instrument  of  carrying  a  resolution  which  led  to  the  collection  o{ 
these  returns.  For,  in  supplying  a  basis  of  certainty  in  the  acreage,  they 
Lave  given  us  the  power  of  answering,  with  accuracy  and  in  good  time, 
the  question  whence  the  30,000,000  people,  who  live  within  the  narrow 
limits  of  the  British  islands  shall,  year  by  year,  be  provided  with  their 
daily  bread. 

N^on.— The  priees  and  proportioDs  oo  which  the  valuatioo  of  the  SDnnal  produce 
of  lire  stock  were,  are  as  uUows :  Dairy  produce  of  cows  in  Eni^laod,  £10  each  ;  io 
SeoUanii,  £8  em/A ;  in  Ireland,  £7  each.  One"  fourth  of  the  whole  of  the  cattle  in  the 
respective  eoontries  »  aaramed  to  be  aold  annoaUy  at  £16  each  io  E^land,  £14  io 
ScotlaoH,  mod  jSiO  io  Ireland.  Of  sheep,  the  wool  U  Talued  in  Eosland  and  Ireland 
St  8  shillings  a  head,  and  m  Scotlanl  at  6  abilliogs.  Oae  third  of  the  sheep  io  oom- 
ber  io  Eogiaod  and  Irelaad,  and  oDe-foorth  in  Scotland,  are  aaanmed  to  be  8olJ» every 
year  at  an  average  price  of  86  ahilliDga  each. 


^«Arf«AtfWaAtfft^^M^i^»«^VMaAtfMh««#M^fla*rfW 


"WATERED"  RAILROAD  CAPITAL. 

[Comrannlcated  ] 
Your  remarks  upon  the  *^  watering**  of  railroad  stoc'  s  in  the  last 
number  of  the  Maoazinx  have  attracted  much  attention  and  deservedly 
flo  from  their  inherent  force  and  general  truthfulness.  It  appears  to  me, 
however,  that,  in  your  seal  to  check  an  indisputable  evil,  while  you  have 
spoken  nothing  but  the  truth,  you  yet  have  failed  to  give  the  whole  truth* 
Permit,  therefore,  a  careful  reader  of  the  Magazine  to  present  a  few 
ooDiideratioDa  which,  taken  together  with  your  remarks,  may  perhaps 
afford  a  more  complete  survey  of  the  questicn. 

The  original  capital  of  our  railroads  cannot  be  said  to  represent  their 
value  in  their  present  condition.  The  roads  have  been  built  gradually, 
the  structure  produced  from  the  original  capital  being  a  mere  skeleton 
of  ties  and  rails,  running  thronp^h  country  of  but  little  value  and  costing 
but  a  nominal  sum  to  the  companies.  From  the  year  of  their  opening,  up 
to  the  preaent  time,  they  have  been  undergoing  a  steady  process  of  com* 
pletion,  until  at  last  our  leading  roads,  in  respect  to  aolidity  of  structure, 
quaKty  of  work,  and  equipment,  compare  favorably  with  the  railroads  ot 
Europeb    Fisgile  wooden  bridgea  and  trestle  viaducta  have  been  in  many 


448  WATBRIKQ   BAILROAD   CAPITAL.  \J\ 


-cases  substituted  by  works  of  masonry ;  statiooB  wLich  originally  were 
iittle  better  than  frame  barns,  have  been  replaced  by  conimodioas,  fre- 
-quently  handsome  and  generally  durable  erections  ;  store-houses  have  been 
•enlarged  or  new  ones  built  on  the  larger  roads;  immense  workshops 
have  been  erected  and  completely  furnished  ;  on  roads  having  their  termini 
on  the  lakes  or  the  rivers,  extended  wharfage  cccommodation  has  been 
provided  ;  in  not  a  few  instances  iron  rails  have  been  replaced  by  steel, 
And  tliousand^  of  miles  of  road  have  received  an  additional  track, 
while  the  rolling  stock  has  been  largely  increased  and  improved.  TLis 
process  of  completion  has  been  conducted  not  by  subecriptions  of  new 
capita',  the  j-ystera  very  generally  adopted  on  the  English  roads,  but,  as 
a  rule,  by  the  steady  absorption  of  a  certain  proportion  of  the  earnings, 
which  otherwise  would  have  been  available  for  dividends.  The  amouat 
required  each  year  for  these  purposes  has  not  been  large  and  did  not 
apjiear  to  call  for  new  issues  of  stock,  so  long  as  the  stockholders  « ere 
willing  to  forego  dividends  for  the  permanent  improvement  of  their  pro- 
perty. When  this  process,  however,  has  been  carried  on  for  a  peiicd 
of  twenty  or  thirty  years,  it  is  evident  that  a  very  large  aggregate  of  new 
capital  has  been  put  into  the  roads,  without  any  corresponding  chao^^e 
in  the  capital  stock.  Moreover,  the  real  estate  of  the  companies  haa  largely 
increased  in  value,  even  without  taking  into  account  the  inflation  growing 
out  of  the  existing  financial  derangements.  The  roads  have  opened  new 
territory,  and  have  been  instrumental  in  the  building  of  towns  and  citits 
on  their  route,  thus  giving  a  value  to  their  own  lands  and  buildings,  largely 
in  excess  of  their  original  cost ;  and  this  appreciation  must  be  regarded  as 
permanent,  under  any  and  all  future  fluctuations  in  values.  The  cod- 
struction  effected  by  the  use  of  earnings,  until  1863,  was  npon  a  low  scale 
of  prices  ;  while,  since  that  period,  high  prices  have  checked  construction 
works,  leaving  a  larger  proportion  of  the  receipts  for  dividends. 

Now,  if  for  a  quarter  of  a  century  the  earnings  of  the  roads  have  been 
steadily  reinvested  in  permanent  structures  and  appendages,  it  is  dear 
that  in  no  sense  can  the  original  stock  be  said  to  represent  the  capital 
actually  put  in  by  the  shareholders.  The  primary  capital  may  be  viewed 
as  what  was  required  to  start  the  roads ;  the  capital  since  pontribnted  was 
needed  to  complete  and  expand  them,  adapting  them  to  the  coastantly 
growing  wants  of  the  country.  The  later  accretions  of  capital  are  unre- 
presented in  the  nominal  capital;  '' watering "  proposes  to  give  them  a 
formal  rc^cognition ;  and  neither  more  nor  less.  It  would  be  ioteresting 
to  learn  wherein  this  course  is  unsound  in  principle.  If  there  ought  to  be 
any  correspondence  between  the  nominal  capital  and  the  actual  invest- 
ment, why  should  not  the  capital  contributed  since  the  opening  of  the 
roads  be  represented  in  the  capital  stock  ?  I  think  the  enemies  of  ^Vater- 
ing  *'  would  find  it  difficult  to  give  a  candid  answer  to  this  question. 


1669]  MILWAUXBS   AKD  BT.  PAUL  BAILWAT.  440 

There  is,  bowever,a  very  proper  j9o/iry  ntiderlyiDg  moet  cases  of  **  water- 
JD^.''  The  improved  condition  and  capacitj  of  the  roads,  effected  by  these 
gradaal  reiovestments  of  earnings,  has  increased  Iheir  profits  to  such 
an  eiteot  as  to  enable  them  to  pay  enormous  dividends  upon  the  original 
limited  capital.  Legislatures  view  corporations  with  a  superficia]  and 
sometimes  ignorant  jealousy  ;  and  these  liberal  dividends  naturally  tempt 
llit^m  to  curtail  the  privileges  and  reduce  the  fares  of  the  roads  to  a 
p'int  which  will  bring  down  the  dividends  to  what  they  conceive  to 
be  a  fair  percentage  on  the  capital  stock.  This  s^rt  of  interference  is 
e^'eptially  unjust.  The  large  earnings  are  not  the  product  of  the 
cri^ioal  limited  capital  represented  by  the  stock,  but  equally  of  the  large 
5u [sequent  contributions  paid  by  the  shareholders  out  of  the  annual 
earning?.  If  the  stockholders  are  to  be  allowed  only  a  moderate  dividend 
upvn  ttieir  original  investment,  then  they  are  to  be  deprived  of  income 
tVuiii  the  funds  which  for  twenty  or  thirty  years  they  have  been  investing 
in  the  roads  instead  of  receiving  them  in  dividends ;  in  other  words,  the 
pull  c  nre  to  be  benefitted  by  the  spoliation  of  the  stockholders.  Railroad 
cipialihts  see  themselves  to  be  imminently  exposed  to  this  injustice;  and 
ti^y  therefore  deem  it  prudent,  in  order  to  place  themselves  in  a  true 
p>ition  before  the  public  and  the  legislatures,  to  bring  up  the  capital 
^'uk  of  the  roads  to  a  point  more  nearly  representing  the  amonnt  actually 
ir.\e:<ted  by  the  stockholders.  This  may  be  thoughtlessly  denounced  as 
''v^aivring'*  or  ^Mnflation  ;'' but  I  do  not  hesitattj  to  put  it  before  the 
^ober,  reflecting  readers  of  the  Cukoniclb  as  challenging  the  closest 
(•.mtmy  upon  the  most  conservative  grounds. 

ITonra,  (Sec, 

A   CoNSBRYATITfl    StOOKHOLDBR. 


**'t^^^*0m^^0m0^0^m0m0m0m0t0*0^0*^^0n 


HILVAnKEE  AND  ST.  PAUL  RAILWAY. 

The  corporation  owning  the  Milwaukee  and  St.  Paul  Raijway  line  is  a 
consolidation  of  the  Milwaukee  and  St.  Paul  Railway  (Milwaukee  to 
Li  Crofse)  and  the  Milwaukee  and  Prairie  du  Chien  Railroad  (Milwaukee 
^»  Prairie  dn  Chien)  Companies,  a  consolidation  perfected  in  1868  by  the 
[urcfaase  of  the  latter  by  the  termer  company.  The  line  in  Iowa  and 
Minnesota  was  acquired  by  the  assumption  of  its  cost  and  indebtedness. 
Inuring  the  last  fiscal  year  the  company  extended  their  Northern  lineft^om 
Oitiro  to  Winneconne  (opened  November,  1868)  a  distance  of  five  miles, 
'^'■l  at  the  close  of  said  year  were  engaged  in  the  completion  of  the 
^Vatertown  branch  from  Sun  Prairie  to  Madison,  a  distance  of  about  12 
miles.    The  opening  of  the  latter  section  of  road  will  shorten  the  distance 

4 


450  HILWJlUKBV   AVD   BT.  PAUL  RAILWAT.  [/kM, 

between  Milwaukee  and  the  MissiBsippi  River  by  about  17  miles*  The 
company  have  also  purchased  the  elevator  at  Milwaukee  foi  $SOO,000,  bo 
that  the  several  roads  now  owned  by  the  company  may  be  described  ai 
follows : 

Milw«iikee,W|fc,  to  Prairie  dn  Chlep,  Wise Itt^iki. 

Pra  ri   do  Ci  ien,  WIsr.,  to    t  Paul  and  MlnneapoHa,  If  inn 215  ^ 

Mi  I  w  nke  ,  Wise,  to  La  ^roaae.  via  Waert'wn,  Wise IM  ** 

Mi  waakoA.  Wl»c.,  to  Porta^,  via  Horicon,  Wire • SA  ^ 

BoricoD,  W>BC.  to  Berlin  and  >a  iDiieomne,  Wiec S8  ** 

Wa  ei town,  Wlec,  til  tsan  Prairie,  WiBC IB  *" 

Miltou,  ^Isc^to  Monroe,  Wlac «  ** 

Tota  length  of  all  the  linea aBiailM 

The  rolling  stock  in  use  on  the  several  lines  at  the  close  of  1868  oon> 
sisted  of  135  (an  increase  in  the  year  of  10)  locomotives;  64  (increase 4) 
first  class,  and  10  (increase  2)  second  class  passenger  cars ;  6  sleepng 
cars ;  53  (increase  5)  baggage,  mail,  and  express  cars ;  2,070  (inoease 
220)  box  freight  cars,  and  430  (increase  32)  flat  and  stock  cars.  There- 
pair  and  renewal  ot  track  in  1668  consumed  the  following,  viz.:  new  iron 
rail  704  tons;  new  steel  rail  116  tons;  reroUed  rail  5,784  tons;  splices 
385,900  lbs.;  chairs  139,054  lbs.;  boltsll2,085  lbs.,  and  spikes  357,09: 
lbs.  Also  190,770  crossties.  The  value  of  fuel  and  supplies  oo  hand  at 
the  close  of  year  amounted  to  $509,882  62.  The  companv  now  have  seve- 
ral new  connections  in  process  of  construction.  1.  McGregor  and  Sums 
City  Railway.  The  franchises  of  this  company  have  been  porefaa^ied  bj 
the  Milwaukee  and  St.  Paul  Company  as  far  West  as  Charles  City,aboKt 
50  miles,  andare  to  be  paid  for  in  sLares  and  first  mortgage  bonds.  This 
portion  of  the  line  will  be  completed  before  the  harvest.  The  Westeni 
portion  will  be  built  by  the  McGregor  and  Sioux  City  Company  at  tbe 
rate  of  60  miles  per  annum.  Probably  the  Milwaukee  and  St.  Paul  C>m- 
pany  will  absorb  the  whole  line,  which,  when  completed,  will,  it  is 
thought,  become  the  best  part  of  the  Company's  property.  2.  ITeil 
WiscQMin  Bailwa  — Extending  from  Tomah  on  the  La  Croese  divisioa 
to  St.  Paul.  The  road  is  already  completed  to  Black  River  Falls  a»i 
being  operated  by  the  Milwaukee  and  St.  Paul  Company.  3.  Scfuth' 
em  Minneeota  Railway — From  La  Crescent,  opposite  La  Crosse,  is  now 
completed  to  Lanesboro',  a  distance  of  50  miles.  4.  ffoBiinge  and  DakoUt 
Railroad  is  open  from  Hastings  to  Farmington,  17  miles,  and  is  being 
pushed  on  to  the  Missouri  River,  the  Western  terminus  to  be  at  or  n^-ar 
the  mouth  of  the  Wash  tee  or  Good  River.  5.  Minneeota  Valley  Raii- 
road — open  from  St.  Paul  to  Mankato,  about  100  miles,  with  a  fair  proa- 
pect  of  rapid  extension  much  further  up  the  rich  valley  of  the  Mio -esota 
River.  6.  St,  Paul  and  Pacific  Railroad — extending  northwesteriv 
from  St.  Paul  about  60  miles,  witti  a  view  of  ultimately  reacbiog  the 
Pacific  Ocean  near  Astoria,  Oregon.    It  is  understood  that  certain  Dutch 


1869] 


MILWAUKSK   AND   ST.  PAUL  RAILWAY. 


451 


ca;  it ) lists  have  this  project  id  hand.  7.  Lake  Superior  and  Mksissippi 
Eirer  Railroad — is  already  built  from  St.  Paul  toward  Lake  Superior, 
a^vui  30  mileSy  and  promises  to  reach  a  point  on  that  lake  during  the  cur- 
rer-t  year. 

iLe  importance  of  these  connecting  roads  is  evident.  Thej  are  either 
exiensioDs  of  t  e  Milwaukee  and  St.  Paul  road,  or  will  become  valuab  e 
feelers  to  that  work.  The  principal  freight  of  all  and  each  will  be  the 
lumber  of  Minnesota  for  consumption  on  the  prairies,  and  the  coal  and 
pr.jvisions  of  Iowa  for  use  in  Minnesota,  Wisconsin,  <&c.,  and  for  transmis- 
sion to  the  lake  ports  and  Canada.  Such  an  interchange  of  commodities 
will  dll  tiie  cars  both  ways. 

Tiie  fullowing  is  a  summary  of  operations  on  the  several  divisions  of 
tlje  eoinpanv's  railways  for  the  fiscal  year  1868,  and  of  the  results  thereof: 

LaCroseeA       Prairie         Iowa  A    Total  of  all 
orthero.        da  Chien.    Hlnneeota.  Divia  ons 


S!iV«  ma  1»y  trains. 

I'i'-e  zer 

Fri  bt     

Woud  and  gravel 


(;i70  m  ) 
481 ,708 
634.189 
I40,3e)3 

1,196,1M 


(385  m.) 

216,019 

615,789 

90,605 

981,418 


(;U6  m  ) 

160,690 

S8»,»47 

98,647 


(«25m.) 
857,41J 

1,589,975 
8M,60i 


It 


T  al  m  lea  ran •....«...  . 

Ton«.frH  h  carried. 

10,9,  eastward 886,955           »«5,741 

•    w  Btw  rd le8,687           167,468 

'*     buthw<i><)    606,69a            4S8,  01 

ToL>i  carried  one  mUe. 

Twii*.  eartw.  rd 88,890,608       81,960,905 

'*     westward 16,728,6  4       1^,887,296 

"     boih  ways 65,119,292       4tf,818,S81 

Torr;agtr  &  et'^rage  rerenne. 

ht venae  eastward $1,20^  012  87  $1,016,7^)2  52 

wetstwar 7*28,668  86      497,889  62 

b-.thwaya 1,983,666  22  1,614,182  14 

irom  storaffe    189  64 

Tocn^e  revenae  per  mllAi 

Pfcrmihi  eastward 8.14c. 

westward 4.86 

^    *♦        bothwys 8.51 

n5^ngeri«  carried. 

rtLB.^Uj^ers  eastward. •••• 170,927 

westw'ird... 206,628 

-,      "          boih  ways ••^  8T7,660 

P*««  ngcrs  carrl«  d  one  mile. 

Passengers  ea^'twar  1 8,678,880 

westward 12,0^B,9^4 

^      '*           both  ways 20,729,774 

riA-engcrs  revenne . 

•H.reime  ea  tward $845,687  05 

westward 4ft6,16l  48 

^    •*        boiliways 800,848  48 

aian&st  Paalaccom,ftc ^ 

Pw-e  ger  rereone  per  mile. 

Per  nule  eastward 8.99c.             8.88c. 

w-stward 8  78                 8.29 

bvthways 8  8tt                 8.84 


644,284         2,721,891 


187,656 

6\118 

206,769 

12,827,899 

6,781,483 

18,108,482 


740,853 

894,218 

1,184,565 

88,668992 

•J«,877,068 

120,046,065 


$460,135  71  $2,671,960  68 
288,(1  0  38    1,614,673  85 


8.09c 

8.69 

8.28 

185,Cf68 
16^,160 
286,713 

6,667,679 

7,816,825 

14,874,604 


788.786  12 
79,569  77 

8.66c. 

4.99 

4.08 

61805 

69,925 

181,8;x0 

8,619,680 
4,852,819 
8,472,899 


4 186,631  48 
79,749  41 

8.19c. 

4.16 

8.49 

867,885 
426,698 
794,588 

18,867,089 
21,726,  88 
48,676,677 


$921955  97    $174,067  48  $741,700  60 

257,649  46       217,644  66  9S0,66!S  54 

891,902  14  1,672,'?66  04 

28,039  6d  28,039  68 


479,645  42 


•4 


4.81c. 
4  49 
4.63 


S.fiSc. 
8.78 

8.84 


The  gross  earnings  of  the   several   divisions,  including  mails,  rents, 
expresses,  &c.,  were  as  shown  in  the  following  summary  : 


La  Crosse 
a  d 

Northern. 

P:*t:M $1,933,566  22 

\\^^.^i,t% 809,848  49 

><i!>a.dreBU 88,896  96 

^' " '-Uneons 6,088  60 

^x.'rw«  :»enrlce 126,836  09 

T^-  in.  h .,  2,118  70 

v»  in?  Cars 9,610  00 

ttrTilOfS 12MW  71 


Prarie  dn 

Chen 

$1,514,371  77 

479,r>0S  42 

25,7r)8  62 

8,381  44 

90,384  67 

1  914  80 

13,666  00 

201  44 


Jowa  Total  of 

and  all 

l&lnneaota.  DiTioions. 

$818,345  8)  $4,2r>6,-J83  89 

414,941  82  1,695,295  72 


14.1ii9  22 
2,48»{  15 

9l,77rt  01 

2«  69 

2,930  50 


78,864  80 
11,9.>6  19 

a03.3sMi  77 

4,-264  69 

26,205  60 

126,378  16 


Tom  gr^M  earnings $3,048,686  76    $2,129,092  67   $1,841,916  28    $6,517,645  71 


452  HILWAUXSK   AND   ST.  PAUL  BAILWAT.  [Jwt^ 

duct  from  tbese  amounts  as  follows  : 

OrdfiAry  exp^mset $1,888,804  97    $1,040,837  56      f6T9,«8^  60   |8.118,S114S 

Xxt»  ordinary  exp*t 400,48  39        818,216  84        182,468  67        »1&,7»S(I 

ToUl  ezpenwt $1,863,847  56    $l,!'fa,044  40     ^8.149  08   $4,0310401} 

Keteamlogt $1,100,789  80     1|761.048  t7      $S»,767  SB   $3,484,001:! 

The  extraordiuarj  expenses  charged  to  income  include  renewals  of  trsck, 
new  bridges,  new  fences,  new  buildings,  new  locomotiTes  and  cars,  tools 
and  machinery,  United  Slates  taxes  on  manufactures,  two  elevators,  mA 
interest  and  exchange.  Had  these  charges  been  placed  against  nev 
capita]  the  net  earnings  would  have  been  $3,404,833  22,  instead  of 
$2,484,604  99  as  shown  in  the  above  account.  Compared  with  the  e^ro- 
ings  and  expenses  of  1807,  those  of  1868  were  ncreaaed  hj  the  following 
amounts  : 

La  Ckv^iM  A  Prar'e  da        Towa  A 

Northo  n.  Chlen.       Mfnno»<>ta.  Tot«l 

QrcBfl  earninn  Incrawed $97,93181  $187,363  19   $S99.R44  10  $!CU.O??t! 

Szp^-n'es  lncr6M«d 180,680  85 349,763  US  867,S&&1'; 

Bzpensf  s  decreasDcL 18,087  38  

NeteamtnifB   ncreaaed 150,300  85      649,783  11  468,67155 

Beteamn^Bdecteated 88,900  64 

The  following  compares  the  gross  earnings  of  the  second  diviuon  for 
the  last  five  years : 

La  Crosse  A  Iowa  A  Praiie  da 

ortbem.  Hiniiesota.  Chien  Tot^I 

1864 $1.40«,1  6  86            $1,711,48')  88  $3,1M,3»<  » 

18ft6 a,586,001  48             1,9-6,61171  4,5^»sau 

1866 9,^3a,71*0  96  $649,79180  9,01X,749  19  6.086,IT«  (^i 

1867 9,9t6,40>>  U5  745,879  09  1,991  ,H  9  65  &.*b3,6i$.'9 

1868 8,018,(>8676  1,814,916  98  9,199.094  67  6,51X615  T. 

From  the  above  tables  we  make  the  following  summary  of  ooroptn 
tive  results  for  1868,  reducing  the  primary  figures  to  relative  propoitioos : 

La  Crosse  A  Pnirle  Towa  A 

Mcrthem.  d  1 6hieo.  ]U]lDe^ota•  TbtaL 

Mllee  or  road  opeaed 876  986  915  '^S 

'J rain mUes  t  •  mile  of  road 8,190  4.176  9,684  aid 

Tons  of  freight  !•>  mile 146,986  199,926  86918  145.  1^ 

PitSBFiuerBiomle. 66,979  61,168  89,406  &tS,'d 

Gross  earnings  to  mile $8,Ue  86  $9,(»»  97  $6,-.>66  4i  $?,«»::« 

Brpenses  to  ml'e    8,175  44  3,988  00  9.477  99  S.t'11  «1 

Net  earnings  to  mile. .  4,940  99  5,89147  8,777  43  i^$^ 

Fe  ept  per  pass  ngerjper  mile 8.9c  8.Sc  4. re  s.Sc 

Bee  ipts  per  ton  per  mile 8.6c  8  9c  4.1c  tM 

Barnlng-p*rmt1enm  on  freight $8  04  $9  46  $9  K9  $i^ 

BamtDgsperm.  on  passeogvn... 988  991  S98  947 

]£zpen-ea  per  mil  ran 176  154  180  1^ 

Bxpensoi  to  earnings 61p.c  64  p.  c  60p.c.  Glp>c. 

The  gross  earnings  and  expenses  on  all  the  divisions  for  the  year  ending 
December  31, 1867  and  1868  amounted  to: 

1867  18flB 

OroBS  earnings $5,683.608  69  $6,iEn.66  ?l 

And  the  operating  expensea 8,665686  89  AJtfSifi^99 

Leaving  net  earnings .^!ioi7~999  77         $9,48iC04  79 

This  residue  is  charged  with  interest  on  the  mortgage  indebtedn€« 
and  previous  to  the  extinguishment  of  the  preferred  stock  of  the  Prairie  da 
Chien  Company  with  the  dividend  thereon.  The  past  year  has  seen  tb«^ 
first  dividend  on  the  preferred  and  common   stock  of  the  consoliilsted 


1S'39|  WLWICEEE  ISD  ST.  PAUL  KAILW^T.  4B3 

C«m|i!<n7.  Id  purauance  of  tbe  nulhoritf  of  the  stock  hold  ere,  conferred 
J^Mnry  1,  1869,  ihe  direclore  declared  a  cash  dividend  of  $7  per  eliare, 
ai..i  a  stock  dividend  of  (10  per  shiire  on  tbe  preferred  Mock  from  th« 
Di-^eartiiugn  of  1867  and  1868;  and  tl4  pt-r  share  on  the  com ro on  block 

!f llie    earnings  o'   1866,  1867,  and  1868,  the  stock  payments  being 

j'^'i-  in  botb  ca^es  in  the  comtnoa  Block  of  the  Cojupany.  The  Cum- 
n!iy  are  now  frfe  from  floating  dr-bt,  at  lea!*t  frre  the  report  *a)9  from 
I'iT  J.'bt  which  ihey  are  not  pr"partd  to  pay  at  sight. 

Tue  f^^nsolidationof  tbe  two  companies  constituting  the  present  cor- 
irmjun  was  not  completed  at  tie  close  of  the  fiscal  year,  1867.  We 
WA  liitre  tbe  consolidated  balance  sheet  a«  of  date  January  1,  18C8. 
li^'^  company  have  purchased  during  the  )ear  then  ending  aJdiliiiuu' 
'r.>,<.Tiy  to  tbe  amouDt  of  |801,291   17  : 

LTiBlUTIES. 


|1S.T4S,STI  OJ 


rafcltaand  blltt... 


■  'u  rl.lp  e,(.»[  .  enib  nrtii.  SlOChiO  U 
•■:a-n  ap.  d-'-daC)  bunas.  S.^i.tO'' C 
iiiBin  71-10  p.  c.  Kui.d« 7B«,l«WU 


AB4BTB. 
"tj tSl.<''ll''IT  IR  I  Int'TTiC  pild  OD  bo'didna  Jul. 


>i  nice 4ft,ft6I  ti]  Cub  on  h..i 

I  agenU.  Ac iei.i.7  -i^] 

i.oat  acc^jmu 18,091  M  ToUl.. 


e  tollowing  we  give  the    monthly   range    of  prices  at   which   the 
y'a  Slocks  sold  at  New  York  in  1866,  1867,  and  1S6S: 


iSsr.M 

M 

njt&ai 

Si 

u 

■4« 

M 

. ;— Pref.  r_»;d_  aiodt . 

..ttmuj ®'...    M  IK    ia)i®-il 

...r  bt-y     &....    M  \it    fli    on* 

■  ■  March ^  bl  i)(    iitt>i((i;TS 


'■  ilMX   a   OaiK    4BMOm  Twr. U    QT*       B1    ®[«M    «13»®l« 


454  PRODUCTION   AVD  DISTRIBUTIOir  OF  BBXADSniPFS.  [«^«1V, 

PRODUCTION  AND  DLSTRIBDTION  OF  BREIDSTDPFS. 

Impoitant  as  is  the  foreign  trade  in  breadstuflfs  to  the  shipper  and  to 
the  producer  the  amount  exported  bears  a  soialler  proportion  than  manj 
appear  to  remember  to  the  aggregate  production  of  ihe  country  or  to  the 
amount  distributed  through  the  great  internal  lines  of  communicatioo  to 
all  parts  of  the  land.  The  pruduction  of  corn  and  wheat  in  the  United 
States  in  the  year  1868  is  estimated  at  980,000,000  bupheU^  or  about  28 
bu'^hels  per  head  to  the  population.  Rye,  oalR,  barley  and  buckwhe^ii 
carry  the  aggregate  crop  to  about  1,400,000,000  of  bushels.  TheUiisI 
export  last  year  of  wheats  rorn  and  flour  (reducincr  barrels  of  flour  to 
bushels)  w«s  only  about  18,000,000  of  bushels.  From  the  port  of  New 
York  the  shipments  to  all  places  was  as  fallows :  Flour,  bbls.  988,993; 
wheat,  bushels,  5,694,787;  corn,  bn«heK  5,900,  679.  Reducing  fiour 
to  biiFhels  the  aggregate  was  16,540,281  bushels.  Of  this  amount  by  far 
the  larger  portion  was  sent  to  Great  Britain.  The  rest  went  to  tk 
British  North  American  colonies,  to  West  Indies  and  to  South  America. 
The  figures  are  as  follows : 

Gfat  Re«*  of  B.  N.  A.        West      l=oaA 

Briialn.  Baro  >e,  Colooiet.  I*  rie».  Ameri^ 

Flonr bbl0.     sao.llO  5U»«8  908,1183  9  8,841       K&tfl 

Wheat bash.  6.5:24.865  15M18  (n,6'6         fK104        »,fi 

Coin baeh.  6,001,916  66,S9x  138,386  ll&,4ae9        UM 

During  the  year  1868  the  receipts  of  the  leading  articles  of  bread- 
stuffs  at  the  five  Inke  ports  of  Chicago,  Milwaukie.  Toledo,  Detroit  and 
Clovelnnd  were  as  follows :  Flour,  4  266,  885  bbls.;  whept,  31,795,521 
bushels;  corn,  31,368,100  bushels.  Reducing  flour  to  bushels,  we  bsve 
a  total  of  84,500,000.  This  quantity  of  breadstuflfs  was  shipped  from 
the  ports  named  and  was  scattered  along  the  route  to  the  seaboard,  l«ss 
thnr)  oncfitth  of  it,  or  16,000,000  bushels,  as  we  have  seen,  going  »bro:id  . 

The  rest  was  for  home  consumption. 

In  this  connection,  and  for  the  purpose  of  appreciating  the  refstire 
importance  of  the  different  avenues  for  freight,  it  is  well  to  look  at  some 
of  the  details  of  production  and  »ee  where  breadstuflfs  are  in  excess  and 
where  they  are  deficient.  The  total  population  of  the  six  New  EotrUnd 
States  and  of  New  York  and  Pennsylvania  is  8,968,453.  The  quaotitj 
and  value  of  the  corn  and  wheat  produced  in  them  is  as  follows  : 

r— — — Qnanjnr,  "^nrheli -> 

^  alae.  Com.  wheat.  To  *>\. 

Maine        $9.74H689  l,694.t89  198.150  l^JU'^? 

HcwHampihlre 9,61)8,740  l,8Sl,t81  805.68  1,«B,MJ 

Vermmi 8.T48/08  1,400,«76  614888  M'«.55 

Vn  Pachasettt 8995.086  9,086.008  41,000  ««''^ 

Khoe'eaDd         89-\8C»4  40<,9M  86.858  488.sg 

Connnctlcut 9/811,000  9,030.^85  6«,4«il  t,'»£5 

»•>*  Yo  k 6fi,P8  .018  t9,S09.H88  19;B«ff,408  ».«».«! 

Penneyivanla 80,684,600  86,'»81,8n  10,610,680  46.S51.5g7 

Total ^^1,961       684»,4d8       t8jK8.8»      •i.4S408 


1S69]  PBODUOnOV  AVD  DmBUHJTIOK   OV  BRBASBTUFrS.  45^ 

Tfaua,  while  PeniiBjlvaniaproduc  b  corn  and  wheat  to  the  value  of  tl9 
for  each  of  its  iDhabitaots,  and  New  York  to  the  value  of  $15,  Masa- 
achQ8#*tt8  prodaoes  only  t2^  and  Rhode  Island  t3^.  Vermont  produces 
|12,  Maine  $4^,  New  Hampshire  $5,  and  Connecticut  $6 ;  and,  altogether, 
these  States  only  produce  an  aggregate  of  about  10  bushels  per  head 
to  the  population.  Turn  now  to  some  of  the  great  producing  States — 
Iowa,  Ulinois,  Ohio  and  Michigan.  These  States  have  a  population 
together  of  6,186,b06.    The  value  of  their  corn  and  wheat  is  as  follows : 

t (^(umtitT,  bnshole -* 

V-lne.  Cora.  "^  neU.  Tot  1. 

Tov4 $71,664,468       k\\  1,188         8,2^666       68.765.1(08 

I   LoU l«i,134,818      :66&44,8fiC       28,5514  1      1K4,89%T71 

I'tito 1«,80  ,(W4       90,788,831       10,<08,  64      1U9,«7B,678 

ILhlgn 6U,806.M8       18,118,680       14,740,689       80,859,3l9 

Total $8SM,104,808     830,803,986       81,786,479'*  881,9  8,464 

Iowa  raises  of  com  and  wheat  the  value  of  $72  to  each  inhabitant, 
Illinois  $60,  Ohio  $35,  and  Michigan  $50  ;  or  altogether,  they  produce 
62  bushels  to  each  inhabitant.  If  we  add  the  aggregate  production  of 
potatoes,  rye,  oats,  barley  and  fruits,  some  idea  may  be  formed  of  the 
vast  food  resources  of  these  great  States  and  the  immense  surplus  they 
have  with  which  to  make  up  the  deficiency  of  the  Eastern  States.  It 
IS  thos  out  of  their  abundance  that  they  pour  forth  such  lavish  supplies  to 
f«^d  the  population  of  less  productive  portions  ofthA  Union  and  of  foreign 
cauDtries.  The  surplus  they  send  to  the  Lake  ports  is  80,000,000  of 
bushels.  Four- fifths  of  this,  after  the  export  is  taken  out,  remain  to  sup- 
ply the  wants  of  New  England  and  the  East,  and  to  make  up  the  de6cient 
average  of  grain  production  which  we  have  shown  above,  and  which 
varies  from  $2^  a  head  in  Massachusetts,  whose  energies  are  given  over 
to  manufacturing,  to  $72  a  head  in  Iowa,  which  Stale  is  the  heritage 
of  an  agricultaral  people,  and  hai  the  capacity  to  raise  food  enough 
for  the  whole  country.  Only  one-fourth  of  her  area  is  now  under  culti- 
vation. 

The  figures  we  have  given  exhibit  the  vastly  preponderant  value   of 

tbe  ivtemal  commerce  of  this  country  compared  with  the  foreign  traffic. 

Tliey  aaggeat,  too,  the  great  value  of  the   railroad  system  for  collecting 

tLe<>e  products  at  the  centres  of  business  and    then  distributing   them 

^berever  they  may  be  needed  over  all  the  land.    The  grain  comes   from 

Chicago  to  New  York  by  water  for  82  cents.    The  railroad,  in  the  heat 

of  competition,  brings  it  for  sp  cents.  From  Oswego  to  New  York,  hardly 

&  quarter  of  the  distance  from   Chicago,  the  railroad  charge  is  58  cents 

for  a  barrel  of  flour,  and  the  water  charge  is  82  cents.    From  St  Louis 

tc  New  Ot  leans  the  freight  on  flour  is  40  cents,  from  New  Orleans  to 

i^tw  York  f  5  centi — an  aggregate  of  $1  15,  while  from  SL  Louis  to 

New  York,  direct  by  rail«  the  freight  is  $1  80. 


456  PEODUCTXoir  Airo  ^uruBunov  of  BRBAiieiiTVfs.        [/mi, 

The  grain  and  floar  atari  from  the  Lake  porta  and  are  dropped  ererj- 
where  hj  the  way.  The  large  cities  demand  millions  of  hnsheU;  the 
manufacturing  towns  hold  out  their  hands  for  a  supply ;  the  small  villi^ei 
all  take  their  quota,  and  the  farmer's  wagon  comes  to  the  riulroad 
station  and  bears  away  to  his  farm  the  barrel  of  flour  wlii'^.h  represents 
the  food  the  unkind  climate  refuges  to  produce.  In  this  work  of  (li^tribQ• 
tion,  as  we  remarked  in  a  former  article,  the  railroads  find  a  large  pirtioo 
of  their  business.  The  water  routes  are  few  and  fixed.  New  land  routa 
are  opening  daily,  and  are  penetrating  to  every  part  of  the  coontry. 
The  flour  which  is  transported  over  half  the  continent  for  a  dollar,  is 
charged  on  the  local  routes  30  or  40  cents,  or  even  more  for  a  dozen  miles; 
and  one  may  ship  r  barrel  of  flour  from  Chicago  to  New  York  for  leas 
than  the  cost  of  gefting  it  to  a  point  not  without  the  reach  of  the  sound 
cf  the  City  Hail  bell. 

The  period  before  railroads  and  canals  was  the  period  before  maDQ{ac> 
tures.  It  was  the  era  of  home  production  and  home  oonsamption.  The 
New  England  farmer  was  obliged  to  raise  his  food ;  he  could  not  bring  it 
from  dit^ttint  regions.  Soon  followed  the  marvellous  growth  and  exteo- 
sion  of  the  lines  of  intercommunication.  As  soon  as  the  fertile  valley  ^ 
the  Genesee  was  reached,  New  England  found  that  food  could  be  bougbt 
cheaper  than  it  could  be  raised,  and  that  the  muscle  and  brain  of  her  people 
could  be  more  profitably  employed  in  other  pursuits  than  agricuUvre- 
The  Ohio  was  reached,  and  the  States  along  the  Lakes ;  and  as  these 
immense  granaries  be:an  to  empty  their  riches  into  the  lap  of  the  East,  the 
latter  found  new  fields  for  its  energies.  Production  and  diatributiou  hare 
gone  hand  in  hand,  and  the  channel  to  market  never  remains  long  o^&' 
crowded.  As  a  new  demand  is  made  upon  it,  new  facilities  are  offeredi 
and  the  restless  energy  of  commerce  is  ever  on  the  alert  to  make  easf 
the  transfer  and  interchange  of  commoditiea. 

But  the  more  important  lesson  developed  by  the  facts  we  have  preeented 
is  the  value  to  the  producer  of  cheapened  channels  for  freight  to  the  East 
Much  has  been  written  of  late  with  regard  to  other  routes  for  reachiog 
the  seaboard.  The  Mississippi  and  the  SU  Lawrence  has  been  looked 
to  with  this  purpose  in  view.  While  we  decidedly  favor  all  these  effoits, 
knowing  it  to  be  for  the  best  interests  of  the  country  that  the  agricoltartl 
products  of  the  West  should  reach  the  seaboard  with  as  little  expecie 
as  possible,  none  can  fail  to  see  that  to  supply  the  oonsuroptioBoftbe 
Eastern  States  is  a  far  more  important  object,  as  that  demand  u  masy 
times  the  demand  for  export.  The  great  question  returns  again  tfaersforSt 
how  shall  we  cheapen  freights  firom  the  West  to  the  East  t  In  a  former 
article  we  showed  that  the  chief  expense  was  in  handling,  and  wearegbd 
to  see  that  in  the  late  Chioago  oonventioo  this  matter  has  been  fitUy  can* 


1869]  THB   PUBUO   DB0T.  457 

yassed  and  an  asnreemeiit  been  entered  into  between  tbe  Boards  of  Trade 
of  the  different  cities  which  it  is  hoped  will  remove  this  difficuliy.  If  tliat 
oan  be  accomplished,  then  it  wil]  be  proper  to  look  to  our  canal  tolls  and 
canal  facilities  to  see  if  the  former  cannot  be  lessened  and  the  latter 
enlarged  or  increased.  Let  as  little  as  possible  be  taken  from  the  produ- 
cer and  consumer  for  transportation  charges  and  the  whole  country  will 
reap  the  benefit. 

TIB  PUBLIC  DEBT. 

There  is  a  good  deal  of  satisfaction  expressed  at  the  fact  that  we  are 
beginning,  however  slowly,  to  reduce  the  principal  of  ^ur  debt  Mr,  Bout- 
welt's  statement  for  the  Ist  June  shows  that  he  had    bought  for  the 
Sinking  Fund  three  millions  of  Five-twenties,  which  have  $93,000   acou- 
mnlated  interest.    Since  this  report,  on  Thursday  of  this  week,  another 
million  was  bought,  so  that  the  aggregate  is  now  four  millions,  bearing 
an  annual  of  gold  interest  of  $240,000.    By  an  expenditure  of  more  than 
4^  millions  we  have  relieved  ourselves  of  the  burden  of  nearly  a  quarter 
of  a  million  of  annual  interest    The  general   policy  of  buying  up  our 
bonds  at  so  heavy  a  premium,  merely  for  the  sake  of  lessening  the  pay- 
ments of  interest,  we  have  several  times  discussed  of  late,  and  we  need  not 
recur  to   it  in  this  place.    There  is  no  doubt,  however,  that  a  part  of  the 
surplus  in  the  Treasury  may  with  gi^eat   advantage  be  kept  in  bonds  so 
as  to  prevent  the  too  rapid  aocumulation  of  gold  and  of  greenbacks. 

There  have  been  during  the  month  very  few  changes  of  iniportance 
in  the  general  agorregates  of  the  debt.  The  grand  total  of  the  long  gold 
bonds  amounted  on  May  1st  to  $2,107,878,700  and  on  June  1st  to 
$2,107,881,100.  The  increase  of  $4,^00  is  not  explained.  It  took  place 
in  the  Five- twenties,  while  all  tbe  other  descriptions  of  gold  bonds  le* 
mained  the  same  as  last  month.  In  the  currency  bearing  debt  there  has 
been  no  change  of  importance.  The  Navy  Fund  is  14  millions,  and  the 
three  per  cent  legal  tender  certificates  show  a  small  decrease. 

But  if  in  tbe  interest-bearing  part  of  tbe  debt  there  are  few  changes,  it 
is  much  otherwise  with  the  rest  of  the  schedule.  The  gold  notes  have 
increased  more  than  seven  millions,  while  the  fractional  currency  has 
diminished  two  millions,  and  the  currency  balance  has  been  increased 
more  than  15  millions.  There  has  thus  been  a  rapid  contraction  of  the 
active  currency  of  the  country,  and  during  the  month  over  17  millions 
have  been  taken  out  of  the  circulating  current  of  ready  money  afloat 
in  tbe  channels  of  trade.  This  severe  contraction  has  not  been  so  much 
felt,  beoause  currency  is  returning  rapidly  from  the  interior.  Had  this 
process  of  locking  up  the  currency  in  the  Treasury  Uken  place  before 
the  monetary  spasm  of  April  had  passed  ofiT,  incalculable  mischiefs  must 


458  THB   PUBUO   DBBT.  [/flMI^ 

have  been  the  result  All  that  this  %ioleDt  movement  has  actaally  done 
ia  to  retard  the  lively  recovery  of  bnsinefls  and  to  prevent  the  commercial 
recuperation  which  was  anticipated.  Everywhere  complaints  are  beani  of 
more  or  less  depression  of  industrial  enterprise  and  stagnation  of  trade. 
This  ill-timed  contraction  of  the  currency  is  in  no  small  degree  to  Uame 
for  these  deplorable  results.  Like  the  showers  and  sunshine  of  spring  the 
genial  warmth  of  favorable  monetary  conditions  are  needfal  to  make  the 
country  flourish.  And  among  these  stimulating  and  indispensable  coDdi- 
tioDS  is  a  currency  elastic,  exempt  from  spasmodic  contraction,  and  reapoa* 
sive  to  every  movement  of  business,  extending  when  trade  is  active,  sad 
gently,  gradually  shrinking  as  commercial  quiet  begins  to  prevail. 

The  currency  arrangements  of  the  Treasury  are  likely,  as  we  ksTe 
more  than  once  showed  of  late,  to  give  ^Mr.  Boutwell  trouble.  The  elas- 
ticity which  is  needful  can  be  imparted  to  it  only  through  the  Tressurj. 
And  this  fa(*t  causes  every  movement  towards  locking  up  corrency  aod 
hoarding  greenbacks  in  the  government  coffers  to  be  looked  upon  with  do 
small  popular  anxiety. 

Turning,  however,  from  this  unwelcome  aspect  of  the  debt  statemeot, 
there  are  several  points  ot  a  more  gratifying  character.  The  net  ag?r^* 
ate  of  the  debt  shows  a  decrease  of  tl  3,384,778  since  the  1st  of  May, 
if  we  deduct  the  cash  in  the  Treasury  and  add  the  accrued  imerest. 
Owing  to  the  increase  of  seven  millions  in  the  gold  notes,  and  the  deeline 
of  two  millions  in  the  fractinnal  currency,  the  gross  aggregate  of  the  debt 
is  nearly  five  millions  more  than  last  month.  It  will  also  be  seen  from 
our  tables  that,  after  deducting  the  cash  in  the  Treasury,  the  net  aggre- 
gate of  the  debt,  exclusive  of  interest,  is  nearly  seven  millions  more  thu 
last  month. 

One  of  the  most  gratifying  aspects  of  the  statement,  however,  is  tbe 
decrease  since  the  war.  At  the  end  of  August,  1865,  was  struck  tbe 
highest  point  which  our  war  debt  ever  reached.  The  expenses  inddeot 
to  tbe  disbanding  of  the  army  had  swelled  the  aggregate  to  the  prodi- 
gious sum  of  $2,756,431,571.  The  amount  has  been  reduced  by  1291,- 
365,064,  and  bad  we  not  expended  fifly-five  and  a  half  millions  during  tbe 
interval  on  the  Pacific  Railroads,  our  public  debt  would  have  been  do 
more  than  about  two  thousand  four  hundred  and  sixty-five  millions.  Still 
the  pleasant  fact  remains  that  we  have  paid  off  two  hundred  and  ninety-ooe 
millions  of  our  public  debt  during  the  first  five  years  of  peace.  This  snm 
is  more  than  10  per  cent  of  the  aggregate,  and  thus  amounts  to  twice  as 
much  as  the  one  per  cent  required  by  the  Sinking  Fund  law  of  1862. 

There  is  one  more  point  which  we  must  not  omit  We  refer  to  tbe 
economy  with  which  the  new  administration  are  running  the  macbioeiy 
of  the  Oovernment    It  is  to  this  that  we  owe  the  laige  snrplns  of  reotfpti 


1869]  FlNANOIAIi  FOSITIOir  OF  XG7PT.  459 

over  oar  disbareements  which  has  so  much  contributed  to  swell  the  balance 
in  Treasary.  Retrenchment  and  administrative  reform  are  among  the  most 
prominent  watchworda  of  the  day. 


i^^»^N^^^^»^h^h^M^*^^^i^^^»^fc^»<*^*^>^^^><W* 


FINANCIAL  POSITIOS  OF  E9TFT. 


T^e  following  inportant  article  is  translated  from  the  French  newspaper,  the 
Progres  Egypiien,  poblisfaed  in  Alexandria,  on  the  recent  speech  of  bis  Bojal 
Highoess  the  Viceroy  in  referetce  to  the  fioaDCtal  position  of  Egypt ; 

For  those  who,  as  we  do,  know  Ej^ypt,  its  iostitutioDS  and  eaitoras,  the  speech 
of  h  s  Royal  Highness  the  Viceroy  in  the  Gbamber  of  Delegates,  indicates  pro- 
gT'^s  in  the  right  direction,  and  we  hasten  to  notice  it.    This  document  is  esaen- 
ti  :lly  fioaneiah    Its  evident  aim  is  to  show  the  actaal  financial  position  of  the 
Egyptian  government.    Tboee  who  heard  it  are  the  representatiyes,  not,  perhaps, 
of  the  whole  of  the  *;ati7e  population,  bnt  at  any  rate  of  tbe  classes  who  pay 
taxes,  and  who  bear  the  conseqaenoes  of  the  fiscal  arrangements  of  the  country. 
To  them,  tberef  re,  the  Viceroy  thinks  it  desirable  to  explain  clearly  the  neces- 
fiity  of  the  present  expenditure.  Tboee  who  will  read  it  are  chiefly  tbe  capitalists 
and  financiers  who,  under  the  inflaenoe  of  various  convictions,  have  thought  good 
either  to  invest  their  money,  or  operate  in  the  Ei^yptian  public  funds     These 
persons,  also,  the  Viceroy  wishes  to  inspiie  with  confidence,  and  he  has  done  bis 
best  to  show  them  a  bright  and  satisfactory  future.    But  let  us  for  tbe  present 
leave  on  one  side  tbe  various  ways  in  which  the  native  and  European  popuia  ions 
appreciate  the  speech  of  bis  Highness,  and  let  xa  consider  it  in  what  it  commonly 
ioteresits  ns  all.    Fir^t  comes  the  debt.    According  to  the  ppeecb,  this  would  be 
red  oed  to  abont  £i  7.000,000,  including  tbe  new  loan     How  is  this  sum  of 
£17,000,000  arrived  at?    Such  is  the  question  which  every  one  ha»  naturally 
aski'd  bimse'f,  and  has  tried  to  solve  by  calculat'ng  tbe  amount  of  the  Egyptian 
debt  with  the  data  which  we  all  popsess.    This  is  also  what  we  have  tried  to  do 
Id  tbe  statement  we  publish,  and  which  starts  from  the  1st  of  January,  1869* 
^e  find  at  that  date  tbe  amount  due  of  £22.797,977,  »bowlog  a  difibreoce  of 
more  than  £5  (:00,000,  as  compared  with  the  official  ducnroent    It  will  be  seen 
however,  th^t  we  have  only  taken  into  account,  for  tbe  formation  of  the  govern* 
oaeo  debt,  the  amounts  indicated  by  the  government  itself,  la  tbe  bud  et  pub-* 
Mied  about  a  year  ago.    We  see  there,  next  to  tbe  loans  of  1862  and  1864,  the 
ob  igatioDs  which   Medjidieh  and  tbe  railway  loan ;  and  if  a  doubt  could  be 
eoiertained  as  to  tbe  possibility  of  Including  this  last  in  the  government  loans, 
it  would  disappear  before  the  declaration  of  his  Highness  himself,  who  says  that 
bis  Ministry  of  Finances  has  taken  it  upon  it&elf  to  pay  off  the  railway  loan.    It 
ifiay  perhaps  be  alleged  thit  when  the  speech  was  delivered  allusion  could  not  be 
Dade  to  tbe  portion  ot  tbe  debt   ue  in  January.    We  will  admit  this,  and  con- 
cede that  this  there  disappears  from  the  railway  loan  £  00,000,  from  the  1868 
loao  £60,500,  and  from  tbe  Medjidleh  obligations  £38,769,  making  in  all  £599 - 
^^';  but,  nevertheless,  we  have  always  a  ,  ublio  debt  of  over  £22,00fi,0i'0.    Let 

BB  Dowtome  to  another  sabject,  vis ,  the  floating  d*bt,'of  which  no  mention 
vbatever  is  made  in  tbe  speech  of  the  Viceroy.    Here  we  have  no  positive  data» 


460  FINAKOIAL  POSmOir  OF  XOTPT.  [/ttM^ 

DO  docamentfl,  and  we  have  to  take  infereDoes  and  informatiooy  the  eootrol  of 
which  is  exceedingly  d  ffica  t.  Accordiog  to  some,  the  bonds  of  the  TreasBrj 
still  io  circalation,  and  the  "  eff  date,*'  or  shares  io  the  names  of  the  owikr, 
wo  Id  moQDt  to  about  five  millions  Bterio^.  According  to  the  most  fovofAble 
calculations  thia  sum  would  come  to  at  least  £d,O0O,0<iO.  We  Fhall,  therefore, 
net  l^e  taxed  with  exaggeration  if  we  take  the  average,  and  fix  the  floatioe  debt 
at  £4,000,000,  to  be  redeemed  within  two  years,  say  £2  000  OOii  per  annam.  On 
looking  to  our  statement  we  see  that  the  servic  -  o'  the  loans  itself  requires  for 
the  year  1869-70  £2,500,000 ;  this  together  with  the  £2,000,000  for  the  redemp- 
tion ut  the  floating  debt,  lepreseots  a  sam  of  £4,5u0,000  to  be  taken  befon 
ever^thio^  else  from  the  income  of  Egypt.  Lh  us  add  to  this  the  tixed  expemee 
such  as  civil  list,  pensions,  tribate  to  Constantinople,  and  pilgrimage  to  Meeea, 
«hich,  a(  cording  to  last  year's  budget,  will  require  io  all  a  sum  of  above 
£1,300,000.  We  have  then  for  the  present  year  £5,800.000,  which  is  absolutely 
Kqiiired  as  indicated.  According  to  the  same  budget — for  the  present  tbeoolj 
oflS^iul  docnoient  to  which  we  can  refer — the  total  income  of  Egypt  i'*  £7,5o  »,• 
000.  'Ih  re  would  therefore  only  remio  after  deduction  of  the  amoant  ststed 
above,  a  turn  of  £1,700,000,  which  ought  to  be  sufficient  for  the  pubic  servioeB 
and  expenses  of  every  kind.  But  let  us  return  to  oar  starting  p  int  The 
amoun*  of  the  debt  at  this  date  is  £22.000,000.  la  Europe,  and  par  icalarlj  io 
the  Eoglisb  fiLaocial  papers,  ti  ey  have  tried  for  seme  time  past  to  establish  tbe 
amount  of  this  debt,  and  tbey  have  gentrally  fixed  it  ai  £28,u00,000.  There  h 
in  this  un  error,  which  it  is  important  to  correct.  It  arbts  from  this  fact,  that 
thi  y  have  confused  with  the  debt  of  the  go\  ernment  that  which  oorrespoodl 
solely  to  tt  e  Vice-regal  Duira.  As  can  be  seen  Irom  our  statement,  three  luaos, 
the  bulaiice  of  which  was  doe  on  the  1st  of  January,  1869,  amoontiog  to  £5,2^1,* 
220,  are  (or  ai-connt  of  the  Daira,  but  nobody  doubts  that  the  private  iocome  of 
bis  RovhI  Highness  the  Viceroy  is  important  encash  to  secure  the  payment  of 
this  amount.  One  of  the  loans  that  was  contracted  in  ISSlf  to  cover  the  [Hl^ 
cha'^e  of  the  property  of  his  Highness  Mostapha  Pacha  is,  it  most  be  said,  got* 
ranieed  by  the  government,  and  if  we  pushed  to  extremes  the  priociple  of  respoa* 
•ibiiity,  we  could  add  the  £2,0u0,000  which  11  lepresents  to  the  goveromeot 
debt ,  but  we  must  repeat  that  nothing  conld  jusitify  this  measore  in  view  of  the 
inctme  of  the  Daira,  and  the  intMosic  value  ot  tbe  guara  tee  of  the  govemoiai 
itself.  'J  he  financial  position  of  E^ypt  be<i)g  determined  in  a  precise  manner,  at 
least  in  what  concerns  the  loans,  bud  in  a  way  unavoidably  approximate  with 
respect  to  the  floating  debt,  it  is  important  to  notice  the  concloaioos  arri?ed  si 
If  we  consi*  er  the  pre  ent  oondi  icn  of  the  finances  (not  taking  the  fatare  ioto 
account),  we  can  only  foresee  very  great  difficulties  lor  the  g  verompot,  and  we 
necessarily  expect  that  it  will  be  obliged  to  find  extraordinary  resoorces  in  order 
to  satisfy  the  exigencies  of  tbe  Tteasury  But  if  we  look  to  the  future  we  see 
that  with  D  a  relatively  short  period  the  charges  it  has  at  present  to  npport  will 
rspidly  decrease.  Contrary  to  what  happens  with  the  great  maj  rity  of  Euro- 
pean states,  the  reimborsement  of  the  public  debt  isn  -t  spread  over  an  onlimital 
perioJ;  it  Is  confined  here  to  thirty  y  ars  at  the  maximum,  with  a  ptogresBve 
diminution  from  yeaf  to  year;  but  on  accoont  of  this  short  space  of  tiow  ft 
weighs  more  heavily,  too  heavily,  on  the  pieient  generalion.    Whatever  nay  bt 


1869]  TBI   FINANCIAL   SITUATION  IN   ITALY.  461 

Ue  caoses  of  the  situation,  let  ur  eiamine  it  as  it  is,  and  we  shal)  agree  that  it 
rnqnire?,  iD  order  to  «ork  oat  a  satisfactc/ry  resalt,  great  cleverDess  and  circam, 
EpectioD,  and  a  ceaseless  watchfolDess.  We  might  be  taxed  with  optimism  if 
after  the  atiove  eiplan  itioDS,  we  asserte'i  that  the  finaocial  position  of  Egjpt  is 
prLQ>peroa4,  but  we  desire  to  guard  auainst  an  exaggerated  appreciutioo  in  the 
contrary  sense,  and  an  ezamioatio*  of  the  resources  of  the  ccantry  will,  no  doubt 
help  to  establish  a  true  and  correct  opinion  on  this  mutter. 


THE  PINANCIAL  SITDITION  IN  ITALY. 

(From  the  London  Economist.) 

Xatara  ly  enough  the  recent  sf.eech  of  Count  Cambroy-Digny  has  rcceiTed 
compiratively  little  attention.  It  is  a  wilderness  of  figures;  end  for  that  raasoD 
the  Minister,  Dotwithstandiog  bis  obvious  intention  to  explain  everything,  has 
failed  t  •  present  a  view  of  the  situation  in  manageable  compr  ss.  Most  people 
hare  got  the  notion,  which  is  not  a  favorable  one  for  Italian  credit,  that  the 
eqji.ibriam  of  the  Budget  is  again  indefinitely  {idjourned,  and  that  there  is  to  be 
a  forced  loan  and  other  expedients  to  provide  for  the  intermediate  period,  no 
prcvi>ion,  however,  being  made  for  unforeseen  events.  The  notion  is  soand 
ecoii^h,  and  perhaps  sufficient  for  practical  men  ;  but  it  may  be  worth  while  to 
8bow  definitely  *he  present  distance  of  Italian  Budgets  from  an  'equilibrium;'* 
the  measures  *  y  wbich  more  revenue  is  to  be  got,  so  as  to  bridge  over  that  di»- 
taLce ;  and  the  nature  of  the  expedients  by  which  the  Treasury  meanwhile  is  to 
be  fupp  ied. 

The  first  point  in  the  Minister's  speech  is  so  far  favorable.    The  flonting  debt 

bas  been  got  under  for  a  time.    la  the  calculation  a  year  ago  the  debt  at  the 

clo^e  of  1868  was  expected  to  reach  the  sum  of  £22,880,000,  but  on  the  Slat 

March  last  it  was  only  JC12,52i\'  00,  showing  a  relief  to  the  Treasury  compared 

with  the  preyions  anticipation  of  £10.360,000.    Unfortunately  when  tdis  sum  is 

examined  it  appears  that  the  rditf  is  obtained  merely  by  an  increase  of  the  per- 

aaoeDt  debt.    The  items  are — 

BeceiTedonaeconotofTobacoLon £7,800,000 

Angmented  net  receipt  from  salea  of  ecclealaatical  property 3 ,680,o00 

Total £9,040.0  0 

Increase  of  receipts  and  diminution  of  expenditure  in  l&6<Hnf-68 1,8^,000 

Ttotal £10,800,000 

—BO  that  the  country  is  only  j&l, 320,000  better  than  it  was  expected  to  be. 

The  other  receipts  which  have  r  lieved  the  Treasury  have  come  from  borrowing, 

or  the  alienation  of  national  property,  which  is  an  equivalent  process. 

Iq  a  very  short  time  moreover  the  eltnation  of  the  Treasury  will  be  as  bad  ai 

(Ter.   The  calculation  for  the  cl  se  of  1869  is  as  f3llows  : 

Tficovered  deftdu  of  1666  and  previous  yean £3,560,000 

Deficit  of  1807 «,SO'.0CO 

Do        180S «,760,000 

Deficit  as  at  Slet  March  last 1S,5«).000 

Xittmated  deficit  of  1860 *»1^'^ 

Doubfdl  "irreers" 8,9(K),C»00 

Adnseee  to  railways •    4,000,000 

InecoTerable  arrears  of  direct  taxes    ••    1,600,000 

Total  dtflctt  at  doce  of  1869 96,610,000 


462  THX  FiNAKOiiL  siTUATioir  XV  TtkLY,  [/me, 

No  doubt  tbe  Minii^ter  sees  his  way  to  the  end  of  the  preecDt  year— the  floatiog 

debt  Mn?  mo'e  than  coyered  by  tbe  following  earns: 

areaenryobligaUoDB £itj»t,m 

Cebttothe  bank 154ttJ,0U) 

Total  £ai,UO,000 

^wbiie  there  i^  £1,210,000  Diore  not  reckoned  to  be  derived  rrom  tbenlesof 

eccKsiabticai  property.  There  is  safi&cit^nt  jastiGcation  for  saying  that  eTerjibirg 
this  year  is  urrunged  for,  includinjf  payment  of  th»  interest  dae  on  1st  Jaooa^ 
next.  It  is  p^ain,  however,  that  it  imy  tresn  disappointment  takes  place, or  there 
is  a  new  deQcit  next  year,  farther  measares  will  be  needfal  to  relieve  tbe  bordefi 
of  the  floating  debt. 

Thi-  is  the  real  point  of  importanoe  in  Italian  finance  as  of  other  nations  in 
time  of  pf^ace ;  and  it  is  jast on  thii  point  where  the  prospect  is  least  satsfactory. 
The  Mioister,  it  is  trne,  counts  on  a  deficit  of  only  £5.120,000  for  tbe  6rst  ytar 
DOW  unprovided  for ;  or  dedactlng  the  sum  set  aside  for  amortbitioQ 
JE2,720|000 ;  but  it  is  preferable  to  see  in  tbe  first  place  what  the  last  actail 
reault  has  been.  Tbe  Minister  pr  sents  as  with  what  he  considers  a  final  accooot 
for  1868,  which  shows  a  deficiency  of  revenue  to  meet  ezpendiiare  of  no  leas  than 

£9  240,000,  viz. : 

Expenditure £48,aOO.GX 

Beceipts M^OW 

Deficit iBMIClOO 

The  truth,  we  fear,  is  that  the  deficiency  is  really  greater  according  to  tbe  strict 
mode  of  reckoning  real  revenue,  bat  these  are  the  Minister's  own  figures,  and  it 
will  be  safest  to  go  by  them.  They  are  unfavorable  enough.  Tbe  dn  ger  of  i 
maximum  floatiog  debt  to  a  Treasury  which  S|  ends  £9,00(i,000  more  than  it  gets 
on  a  revenue  of  jC33,9 60,000  is  apparent  to  every  one.  That  the  danger  exists 
in  a  country  which  has  beeu  btruggiing  for  years  to  find  new  soaroes  of  revKias 
and  cut  down  expenditure  makes  it  almost  hopeless  to  expect;  that  the  two  ends 
will  be  made  to  meet  and  tbe  floating  debt  kept  fiom  attaining  dimenaiooa  which 
will  compel  insolvency. 

The  hopelessness  or  at  least  enormous  difiBculty  of  the  prob'em  may  be  other- 
wise shown.  What  the  Minister  calls  **  irreducible  expenditure" — that  is  inter- 
est on  debts,  pensions,  &c — amounts  to  very  nearly  two-thirds  of  the  rack  ^Te- 
Due  of  Italy.  A  nation  of  25,1 00,(  OU  inbabiUnts  paying  £20,720,000  of  interest 
out  of  a  revenue  of  £33,960,000  canuot  be  in  a  good  way.  That  things  shook! 
get  worse,  the  interest  of  tbe  debt  gradually  absorbing  the  entire  revenue  of  t]» 
State,  would  be  a  probable  enough  contingency  but  for  tbe  increased  difficuitjof 
borrowing  as  sach  a  time  approaches  which  miy  make  it  impossible  to  pay  tlte 
interest.  The  first  necessity  of  a  State  is  the  maintenance  of  internal  govern- 
ment, and  when  tbe  margin  of  revenue  left  after  paying  the  public  creditor  is  so 
small  as  in  Italy  mctstfary  expenses  can  only  be  paid  out  of  fresh  borrowiogfi 

which  in  turn  aggravate  the  evil. 

The  Minister's  main  hopes  tor  tie  Tuture  consist  in  the  reduction  of  expenses 

and  tbe  increased  yield  of  taxes— the  former  contributing  £2,500,00()  at  once  to 

the  reducuon  of  the  deficit,  and  the  latter  tbe  remainder  of  the  amount  doriog 

the  next  four  or  five  jeais.    Witb  rtga.d  to  tbe  Utter  we  eboald  be  inclined  to 

think  the  Ministerijl  exptctatioos  not  altogether  unfounded — barring  accidents. 

'What  he  expects  improvement  from  is — generally  improved  admintetration;  tlte 


1869]  THJI  TjnAVOlkZ  SITUATION   IV   ITALY.  463 

improTed  assessment  and  collection  of  the  direct  tnzes,  a  new  cadastre  being 

framed  for  the  foocler  tax,  the  most  important  of  all ;  the  increaf^ed  yield  of  the 

mnitare  t*>z,  as  it  gets  into  fnll  working  order;  and  laf^t  of  all,  the  pmg  es^iye 

increase  of  ibe  rerennewitb  the  increased  induFtryand  prosperity  of  the  country. 

All  these  things  Italy  is  likely  enough  to  get.    The  improvement  of  the  adminis* 

truti'n  is  going  forward  notwithstanding  great  resistance,  the  arrears  of  taxes 

beccmirg  leFs,  and  the  confusion  incidental  to  the  amalgamation  of  the  various 

provicces,  and  charges  ir  the  incidence  of  the  taxes,  being  overcome.    Itily  was 

DO  doubt  far  behind,  bnt  everything  turns  on  success  here,  and  strenuous  efforts 

a'  least  are  beins:  made  to  obtain  that  fnccess.    If  not  attained  quickly,  the 

fio  <ncial  evils  will  not  be  the  greatest.    A<*  to  the  direct  taxe^  the  Italians  are 

pUinly  fo'lowing    the    almost  perfect    thonsrh  somewhat  expensive  rood^^l   of 

Kracce,  and  after  the  lapse  jf  some  time— as  the  MiniRter  admits — a  conftiderable 

addition  to  the  yield  of  these  taxes  may  fairly  be  expected.    1'he  caf^eas  to  the 

iDQiiQre  tax,  again,  is  also  clear,  experience  baring  shown  that  it  is  fully  ieviab  e 

in  a  certain  way,  though  various  clrcun.stances,  inclu  ting  the  enormous  antici* 

patory  grinding,  and  the  mode  of  kvying  it  by  licence,  which  was  the  first 

practised  as  we  described  last  week,  prevented  it  from  yielding  at  6  st  all  that 

ira5  expected.    It  cannot  be  said  at  lea^t  that  the  tax  has  fai  ed ;  and  till  it  does 

fa  Italian  financiers  may  be  pardoned  for  resting  largely  upon  it.    The  progres* 

iire  increase  of  the  revenue,  due    o  growing  prosperity,  seems  likewise  a  legiti- 

ma'e    enough    expectation  on    the  conditions   laid  down — that  there  are  no 

accideota;     few  things  being  mo  e  remarkable    than    the    elasticity  of   moat 

European  reve  aes  in  recent  times  and  in  ordinary  circumstances. 

We  have  not  the  same  confidence  in  the  expected  diminution  of  expeoseo,  ja«t 

Ucia%  Italy  already  spends  little  enough  on  administration  and  improvement. 

The  figures  for  1868  are : 

Odiiiarj  expanses £1S,5(K)000 

£xttaor  inary  expenses 4,820,000 

Total 90,8&0,00a 

—which  is  not  a  large  sana  for  25,(^00,000  of  people  under  a  centralised  Govern- 
moQt  and  deficient  in  the  ordinary  applrances  of  civilization.  How  it  is  to  be 
Bafr-ly  reduced  by  a  million  and  a  half  on  the  first  head  and  a  million  on  the 
BeroDd,  with  all  sorts  of  new  demands  starting  up,  it  is  difficult  to  underst  md. 
The  Italian  Government  has  not  of  late  been  more  successful  than  its  neighbors 
io  keeping  within  estimates,  and  we  mast  regard  with  some  little  scepticism  the 
prorpect  of  the  expenditare  of  future  years  falling  below  the  hvel  of  1867 
wd  1868. 

'be  proposals  for  covering  the  intermediate  defic  ts  which  the  Minister  antici- 
^^te?  may  be  briefly  dismisaed,  as  it  is  yet  too  doubtful  what  hU  real  needs  mny 
^'  The  sum  he  has  to  provide  for  he  cJculites  roughly  at  £29,120,000,  which 
includes  however  the  debt  of  £15  000,000  to  the  Bank  and  £2,000,000  of  Treas^ 
^^y  obligtitions  to  be  paid  <  fi*;  the  deficits  of  1870  and  of  succfssive  years  until 
^iiiibrmm  is  attained  being  reckoned  at  £l2,000,0i)0.  There  will  also  be  a 
furber  rum  of  £2.400,000  of  intereet  in  consequence  of  the  measures  he  pro- 
po^es^toul,  £3I,:2i),000.  His  measures  ibeu  are*. — (I.)  An  anticipation  of 
^be  fiities  of  ecclesiastical  property.    (2.)  The  creation  of  two  credit  insiitutions 


464  THB  VTSAVOIAL  BITUAnON   IH   XTAL7*  [JfOii 

which  will  leod  the  State  capital  in  coosideratioa  of  their  privileges  Aod  (3.) 
A  forced  loao  ,  besides  cue  or  two  minor  'expedieats.  Taeae  are  to  yield  re* 
BpectiTely  the  following  amonnis : — 

OperfttLont  on  ecdo<Uetical  property • jntittKUXB 

From  credit  Inttiiat  one 4,aXi,uA 

Fuio'dloan llfil^W 

Minor  measorea  (indadiUg  £4,400,000  a  tldpated  npajmenta  of  lailway  bonds. . ..    S,7U)  UA 

Total ^ mjM^ 

^which  is  raiher  more  than  the  total  sam  to  be  provided.    The  erpedieou 

themselves   seem  open  to  some  question.    1.  The   aoalieoated   ecclesiastic il 

property  is  to  be  placed  in  the  hands  of  a  company  v^  hich  will  advance  the 

abt.ve  SQOi  of  £12  ()( 0,00<  >»  partly  by  depositing  a  portion  of  its  capital  as  a 

gnarantee,  and  partly  by  lending  to  ihe  Government  upon  '*  domanldi  "  hood:* 

This  compaoy  is  also  expected  to  benefit  the  country  by  making  advances  to  tbi 

provinces  und  communes  Ur  t  e  construction  of  roadp,  which  does  not  loos  Ike 

u  veiy  profitable  businefs,  j&5,040.0CO  is  to  be  advanced  when  the  society  is 

formed — the  remainder  gradually.    2.  The  credit  institutions  are  the  Natiooai 

Bank  and  the  Buck  cf  Naples,  which  are  to  be  the  bankers  of  the  Treasary, 

and  are  to  depo.<it  the  above  £4,uOO,0U0  in  name  of  gnaraniee  **  without  p-ejo- 

dice  to  the  subventions  which  they  ure  bounJ  to  make  to  the  Treasury  on  simpie 

request."    As  the  Italian  Goveinment  however  is  getting  rid  of  a  debt  ol  £l>r 

000,000  to  the  bank,  it  oaanoi  be  said  that  its  position  will  ih'is  be  made  worsen 

3.  'ihe  forced  loan  is  not  very  clearly  explained.    It  ia  to  be  raied  in  foar 

equal  iofetalments  spread  over  four  years,  that  i^  four  instalments  of  £3,2u(i/00 

each,  aud  the  contributori.s  ure  to  t>e  the  possessors  of  incomes  excceiiio^  £60 

a  year.    The  Minister  calculates  that  it  will  be  equivaleni  to  an  in  jo  >etai  ol 

6f  p  r  cent  for  the  years  in  qutstion,  with  this  difference — that  government  will 

be  liable  to  repay  it  after  lti8I,and  that  in  the  meantime  it  wii   bear  i  .Cerent  a 

the  rate  of  6  per  ce 1 1.     « he  scheme  is  iugenious,  but  one  feeU  Uoub  In  whether 

the  money  can  be  got,  or  why  ii  u  that  the  Italian  Governmeji  does  not  icv/  itid 

greater  part  of  the  amount  as  a  real  income  tax,  which  would  do  more  Uua 

any  other  expedient  to  tide  over  pret^ent  difficulties. 

We  have  thas  gone  over  the  most  important  points  of  the  Italian  Mioistrrs 
financial  statement.  While  it  is  hardly  possible  to  give  too  much  praise  to  tii3 
asuduous  labors  of  Italian  public  m  n,  we  coulees  that  the  impression  Jelt  on 
our  minds  is  that  Italy  can  hardly  pull  through  on  the  present  line.  To  jastt/y 
the  hopes  expressed  everything  must  be  given  in  favor  of  Italy.  EipeuiSB 
must  be  cut  down,  the  administration  must  be  improved,  the  revenue  moit  jiM 
more,  the  various  financial  combinations  must  reatiz3  what  is  expected,  and  at 
the  end  of  ten  ye.rs  Italy  must  be  pro-perous  enough  to  sustain  the  equiiionam 
without  any  more  expedients.  Is  it  likely  that  any  country  will  be  so  lucky 
even  though  no  catasttophe  like  ioreign  war  should  throw  its  weight  iato  ihe 
opposite  scale  ? 


The  following  table  of  the  acconnU  of  1867  and  1863  and  the  esiimaies  of 
1669  and  1870  is  given  by  the  Italian  Minister  in  his  ppetch  ;  and  sbowt  nry 
well  two  thiDgs— the  progress  of  the  irredacible  expendiure  dariog  the  past 


1S69J  RAILROAD   ITSIIS.  465 

veiirs,  and  the  smaller  amouot  of  the  aDticipated  compared  with  the  realized 

deficits : — 

BXPB!TriTUaK. 

lhS7.                 1^3.  18^9.  1870 

Irredurib'e  expendltaro £19,06.1,000       £-20,7  0,001  £»),'60,000  £21,*2»<).<  00 

Am  rn-s-lion 1,480.0«K)            l,6iM»,r(K)  a^'O^'M)  2,4(m.oOO 

0  r  ina  y  exp«o  eg 16,7'0,<'01           16,56".OO0  14,gs0.000  15,()40.<KK) 

ii.rHOTdiatuj  do 8,400,000            4,3'20  OuO  3,410,000  3,4j0.00iJ 

41.h00,(:00  43,2UO.00O  41,0s0,00d  42,080,000 

BECBrPTB 

OHiniry £3l,!i2<MJ0»    '  £31,44^0'H)       £33,500,000       £8\7l".000 

Extuordinary 1,760,000  2,5-W,iiOO  3,3  O.OOJ  1,2  lO, 000 

81,28  >,000         83,%0.003  86,920,000  86,060^ 

reflclts 8,320,003  9,240,000  4,160,003  6,120,000 

RAILROAD   ITEMS. 

ArcnoN  Sals  of  a  Railroad  in  New  Orleans  — The  sale  of  the  New  Orleans, 
Opeitusaa  and  Great  Wirstern  R<iilr<>arl  t')ok  place  on  Tueed  ly,  May  26,  by  virtue  of 
an  order  fn  m  it  e  Uoited  State?  Circuit  C  mrt,  uoder  the  auspices  jf  exdnited  States 
>iar-h2il  F.  J.  Herron.  The  principal  iuterests  repretented  were  the  Illinois  C<fntral 
Ki.iiruarJ,  U  e  Mobile  and  Cbattanoo  a  Railroa  ,  the  ondholders  of  the  r  ^a  ,  and 
C:i;irl.>8  MorguD.  The  first  bid  was  #  i ,000,000,  the  next  $1,600,  00.  The  bids  then 
pr  c^*"le<i  by  haodreds  of  thoiisamJs  to  |2,  00,000,  which  was  bid  by  Mr.  »  aul  BUiuc 
in  I  t^half  of  ibe  bondholders  of  he  road,  to  which  amount  he  was  limited  G  A. 
^biiney,  reoreeenting  Charles  Morgan,  bid  1*2.06  ,(>0  ,  at  which  amount  it  was 
ki)  CHtfii  down  after  a  room«*ot's  pause,  and  $76,000  im  m^'ditely  paid  as  a  guir- 
ui -e.  Mr.  Whitnev  announced  that  it  was  the  intention  of  Mr.  Morgan,  who  was 
pre«'nt  in  person,  to  imme  di  teU  set  about  expending  the  road  to  the  -^abine.  The 
actual  sain  occupied  barely  ten  minutes.  Mr.  Morgan,  the  purchaser  of  the  road,  in 
ling  ublie  CJiumunieatioD, announces  his  readiness  toco-operate  with  the  bu  ineas 
m*-b  of  Texas,  L  aisi-tna,  New  Orleans,  or  any  otl^er  section  of  the  country  intereeied, 
io  i^xtending  tbe  O,  elousas  Railroad  to  Texas  by  the  moi^t  e  igible  route,  and  prop«>9ea 
that  a  new  corporation  be  formed  to  obtain  the  remaining  franchises  of  tbe  New 
Orifanp,  Opeloa>as  and  Great  Western  Kailroad,  with  a  cash  capital  of  $4.( '00,000, 
of  which  be  will  bim^e  f  take  and  pay  cash  for  $2,000,0  0  of  the  stocK,  provided  the 
9a!ije  amount  be  ratsed  by  the  other  parties  interests  1.  He  lurther  announc«*8  his 
itit^ntiofi  to  pot  the  road  already  completed  in  perfect  repair — if  necessary,  making 
&  double  tiack. 

Fort  Watns  Lxass. — Of  this  the  New  York  7Vt&uu«,May  28, says:     The  lease  of 

tbe  F  rt  «*  ayne  Riad  to  the  Pennsylvania  C'-ntral  Koad,  was  formally  ratified  t)-  lay 

&i  Phiiaielphia  by  the  Di'ectori  of  both  rotds.    Thn  Directors  of  the  Pennsylvania 

Ctutra'  acted  under  instuctioi  s.  but  the  Fort  W^ayne  Dirertors  will  take  a  vote  of  the 

etocK  bo  ders  before  the  matter  is  finally  settled.    This,  however,  is  a  matter  of  foim, 

&i^  I  he  vote  will  be  almost  unanimous  in  favor  of  the  lease.    Tbe  terms  are  au  fo|. 

loT^:    The  Fort  Wayne  Road  receives  12  per  cpnt  u|x>n  the  presnnt  capital  stock  of 

tbe  company,  free  ol  Government  tax,  payable  quarterly,  the  Pennsylvania  Cental 

Hoad  guitraoteeiog  the  bonds  of  the  company, keeping  the  road  and  its  equipments  in 

rtp&ir.    Tbe  lease  is  perpetual,  and  the  stockholders  of  the  hort  Waynd  Road  now 

biYe  a  security  guar  inteed  by  the  wealthiest  corporation  in  thin  country,  and  bey  nd 

t^e  contingeocies  of  Wall  street  manipulations.     The  Directors  of  the  Fort  Wayne 

R^tdbave  di  cussed  the  subject  of  iocreas  ng  their  st  ick,  and  have  about  decided 

QpiQ  making  a  scrip  dividend  of  7 1^  per  cent,  which  would  make  «^xacily  7  per  cent 

upoo  the  increased  cnpiial.      Ihn  lea^e  goen  into  ^ ff  ct  upon  the  1st  <  f  July,  and  tbe 

Furt  W^yne  road  have  Uieir  earnings  for  the  half  year,  as  well  aa  the  mo  ley  to  be 

received  from  tbe  sale  of  the  supplies  now  on  hand.     The  surplus  cash  wiil  bd  divid  d 

&D  1  will  probably  amount  to  lo  per  cent,  Hlih  ugh  it  cannot  of  course  now  •  e  ded- 

Ditely  Btatt-d.     The  »tock  of  the  Fort  Wayne  will  now  disappear  from  Wall  street, 

^<1  be  held  by  estatts  as  an  m vestment,  being  a  perpetual  7  per  cent  s  c  irity  free 

ol  Oovemujeut  tax.     It  will  supply  a  want  that  has  always  been  felt  by  executors 

&Dd  trusters  of  e-'tates.     A  meeting  of  the   Directors  of  the  Fort  Wayne  road  will 

be  held  oo  Saturday  to  decide  as  to  tbe  scrip  dividead. 

5 


406  FCBUO   DIBT   or  THI  UnTKD   BTATU,  [•'^'■'t 

J  OLiDo,  Wauih  AND  WmHH  lUiuOiiP.— Tblt  Oonpuif  bw  DotiStd  Um  tttBdl 
Bz'bs' ge,  u  Doder  the  rulea  of  tbe  Ezchkne«  tbej  are  bound  to  do.  tbirtf  <Uj< m 
ftdranca  Ihitin  conaeqaciic«  of  tfaaif  coneolid&'iOD  >ome  moatlu  (Idm  with  Uf  Dtatnr 
(Ulinoii)  BDd  tit.  LouU  .oaH,  their  CimmoD  Gmital  is  to  he  inpreu*d  tl.eii.Mo  og 
tbia  account,  and  also  tl,  8  ,B0 1  for  nev  conitrnclioD,  equipm«Dt  and  gnin  eltnbxt 

(ths  latter  at  ToUdo).  M>  tbat  Ihi;  Cai^ltal,  eicluaiv-     '  -    — " '  -^■' 

Pieferred  Slock,  ia  to  be  iucraased  to  (^,600/100. 

— On  tbs  maia  liii«  o(  tbe  St.  Paul  and  Paeific  road  tbera  are  dot  nrarly  I.0''0 
men  at  work.  Tfary  are  grading  at  the  rata  of  a  baU  mile  ot  ibe  road  p«r  daj,  uJ 
bSTH  «ight  mile*  of  toad  ready  for  Jrua.  The  cara  are  now  moDiiig  to  Smitb'*  Lak(, 
aiz  T  milFB  waat  of  St.  Paul,  and  they  will  c<  immeiica  to  lay  the  imD  frmn  tbera  In 
Uoore'a  Pniri',  vbich  point  they  vill  reacb  in  a  few  dsya.  Tbia  carriei  the  raad 
throi]b;h  Ibe  Big  W<  oda.  Tha  liea  are  all  out  and  ready  f.r  the  niaetj  milea. aad  (In 
imn  Ibr  tbe  uma  ia  in  8L  Paul  aad  on  the  way  tbera.  It  ia  expected  the  Cin  will 
be  running  over  aeompleted  road  IflO  milea  West  of  St.  Fdul  before  tbeaoo*  flw. 

— Tba  certificate  of  incorpnration  of  tha  Straiturire  aud  Huching  Vallay  RaJlrod 
Company  waa  filed  at  Ihe  Ohio  SfCratiry  oF  Eitate'i  office  on  Friday.  Tlw  miia 
line  of  the  propoeed  route  ib  Io  rztend  from  SlraitBTille,  in  Perry  Cnooty,  to  a  paiot 
In  Athena  Oouuly.  at  or  near  tbe  aqueduct  at  the  mouth  of  Monday  Creek.  U 
brancbra  are  to  ezteud  t"  Nelaonville,  in  Athena  oanty,  and  pninta  near  that  plut, 
•od  to  Logau,  in  Uoeking  Oouoty ,  and  other  pointa  in  the  coal  region.  Tbe  capUl 
atock  is  tS0O,0  0,  in  abarea  of  ISO. 

— The  Ditectota  cf  the  Chicago  an  i  North wratern  Railroad  bare  giren  nolke  to  Iht 
Hew  York  Stick  Exchange  that  t  ey  haie  aold  one  aod  a  bali  milliooa  of  tba  pn- 
ftrred  atock  at  lOb,  or  par,  ex.  the  June  li*i  lend.  Tbia  atock  waa  iasued  to  reprc. 
aent  10  percent  equipment  bonda  that  baia  been  pad  off  ty  the  co-npany. ami 
additional  equipmenia  placed  npon  Ibe  road.  Thia  waa  anbicribait  for  1^  tbe 
directors,  and  uiree  times  the  amount  waa  bid  for,  although  the  dooudbI  price  in  tbt 
■traet  waa  1^  per  cent  leaa  at  the  time  tbe  atock  waa  takaa. 


PUBLIC  DEBT  OF  THB  UlllTBD  mm. 

8TATBXENT  COltPABINQ  THE  RETURN  i  FUB  HAY  1 UXDJUSX  1,  IH 


So.  tivndaa                           I (aj.iwi.noo  t^.ouoono 

I T.oji.oiM  i,(irt,nc() 

<a.B'daof'i                               ' IS.41S.tiUi  ia,1IS,0i'O 

«r    "         "                                     .   M\IOl)  MB.U0O 

Ae.    "    OTJ                                IW.JITWi  m,SlI.W' 

B-       t.          tl  Mt  171  HH^  SIJ  TTl  An 


es,  BoiidaofIMn,'b7, '«t tl48.ai0  )l»,i«l 

Sa.tloi.da(lailadem.)ltftt SM.n'O  M  ,000 

Trenaaiy  notes  prior  to  181T Oi.S  »  !■  4,"lt 

■■     "^     '■       Bines  IWI BW).W  BSl.lM 

fis.Certlflratesoflndaht'eis  l;(m  llOOU 

■tt»,Comi.'dint.nQte«'eTi'«8 aOSLuiO  S.ftlM'W 

Temuurary  loan l-^.SHI  lsa,B10 

T-aO«;  8  jearuotes  (-»:*'«) l.fW.Wfl  I,«n.l  0 


18^9]                          OOMMEROIAL    CDRONIOLB   AND    RBVIBW.  467 

BWUPITULATION. 

Debt  bearing  coin  iaterett $3,107,878,700  $2,107,882,100         $8,400         

'*    b'riD«  lawful  money  int 67,24ii.0()0        07,075,0(0  $165,000 

"^    onwbichi..t  hisceas'd 6,10*2,114  6,4^1,864  ::80,!i50 

••    b«arln:,' no  mtereet 407,7il,368      412,862,287  5,180,919 

Ajqregat-  principal  debt $2,588,542,182  $2,698,231,261   $  1,689,069  

Coi.  interest  accried 45,u6«,185        88,47«,662  $6,689,623 

Lawful  moaey  int.  accrued: 1,071.700  1,286.600        164,800  

LiUaccraed  on  matured  debt 363,621  7U6,340        872,  ;19  

Aggregate  debt  A  int.  accrued $2,685,033,683  $2,683,670,653  .....    $1,868,085 

Detiact  amoaot  io  Treasary : 

Coin  b^lonin^  to  OoTenun't; $92,031,783      $81,889,400         $10,199,964 

Coiu  fu'-  whicn  certiflcatea »*^ 

are  catataDdimc 16,307,200        23,840,720     7,038  690  

Cnrreiicy 7,896,664         19,934,f65    12,»87,991  

bink'^  rand  in  coin,  b*d8&  int 8,098,296     8,003,296  

Total  coin  *  cur*y  in  Treaa'y $1 16,285,497    $128,258,040  $12,032,648  


Dtbtleaa  coin  and  currency $2,518,798,191  $2,505,412,618         $18,885,578 

BOKDS  I  iUKD  TO  UNIOK  PACIFIC  RAILBOAD  AKD  BRAMCHXS. 

(Tnder  acta  of  Joly  1, 1862,  and  July  2,  1^64 :  principal  payable  in  80  ye&ra  after  date,  and 
iDtereat  eemi-annaaJy,  in  Janaary  and  July,  both  In  lawfol  money  ) 

&>,  I'Dion  Pacific  Railroad $25,998,000      $25,99^000         

6,  UQionPacinc<B.O)R.R 6,£0«,000  6,803,000 

63.  S)oux  City  A  Padflc  R.B 1.628,820  1,62S,820  

6^  antral  Padfl^.B.K.. 91 003,0(i0        29,789,(K)0     1,786,000         

te,  CetitrAl  Bran  h  (Eansaa) l,6UO,G00  1,600,000  

^We«tem  Pacific  KB 820,000  820,000         

•U    aoMntiasoed 166^853,820     i68i688,820  $1,786,000 

1'be  interest  acconot  oo  which  stood  as  follows  : 

Internet  accrued  not  yet  paid $1,180,860        $1,486,008  $805,730 

Ir terest  paid  by  U .  8 8810,053  8,810,058  

Inter  at  repaid  by  tranappration,  maila,  ^.        1,880,488         1,411.188  80,750 

Balance  of  interett  due  U.  8 8,('59,984         8,834,968  974,979 


COMMERCIAL  CHRONICLE  AND  REVIEW 


Xooettrr  AiTairB— Bates  of  Loans  and  Dltcounta— Bonds  sold  at  New  York  Stock  Exchangs 
fiotrd— Price  of  Government  Securitiea  at  New  York— Course  of  Consols  and  Aoierican 
been  Ities  at  New  York— I'pening,  Bigbe»t,  Lowest  and  Closing  Prices  at  the  New  York 
Stock  Exchange— General  Movement  of  Coin  and  Bullion  at  New  York -Course  of  Gold 
St  New  York—Courao  of  Fore  gu  Exchange  at  New  York. 

The  money  market  dariog  the  month  of  May  worked  steadily,  and  the  uni'brm 
rate  on  call  leans  at  bank  and  among  private  lenders  was  seven  per  cent 
FaTored  borrowers  who  offered  government  bonds  as  collateral  were,  in  ezcep- 
tioDal  instances,  accommodated  at  six  per  cent.  This  firmness  in  rates  was 
chiefly  supported  by  the  demand  from  the  stock  brokers,  incident  to  the  enlarged 
bosioe  s  and  heavy  speculation  in  railway  and  miscellaneons  secarities  at  the  Stock 
Exchange.  The  demand  for  accommodation  from  the  mercantile  class  was  rather 
QDder  the  average,  general  trade  having  been  dall.  The  movement  of  currency  to 
aod  from  this  centre  was  small,  bat  rather  in  favor  of  the  ciiy  banks;  these  instl- 
totioDs  were  also  strengthened  in  their  legal  reserve  by  the  Treasury  sales  of  gold; 
the  payment  of  the  same  have  chiefly  been  in  National  Bank  notes,  with  which 
the  banks  were  very  willing  to  part 

Ths  month  has  been  an  eventful  one  at  the  Stock  Bzchange  where  prices 
baye  advanced  on  the  active  stocks  to  figures  never  before  reached.  Two 
grand  echemes  of  consolidation  have  been  developed.  The  first,  that  known  as 
the  VanderbiltconsolidatioD,  which  has  in  view  a  union  of  the  Hudson  Biver,  New 
York  Ctatral,  Bufiklo  and  Erie,  Lake  Shore,  and  Michigan  Southern  Bailroads, 
thereby  forming  a  oonttnuous  and  bamonkms  line  between  New  York  and 
Chicago;  and  the  second  that  of  the  Pennsylvania  Bailroad  Company,  which  has 


468 


COlCMKKGIAL    CBRONIOLI  AKD    RITIKW. 


[/•«, 


yirtnally  extended  its  line  to  Ghicafj^o  by  a  perpeta&l  \enfe  of  the  Pit ts^nr^,  Fort 
WajDB  and  Chicago  Railroad  Negoliat  odb  are  alino  pending  l^ietween  the  Peon* 
sylvania  and  the  New  Jersey  Central  Kailronda  fm  a  leas*- of  the  latter  to  tbe 
former,  which  would  (;ive  tbc  first  named  a  perfect  und  anbrok»n  line  from  Sw 
York  10  Chicago.    On  thpse  two  schemes  has  hinged  the  entiie  specn'ation 

1'lie  t^tal  trau<-action8  at   the  Stock    Hxchantre  during  th*'  month  an  can  to 
1,696,439  shares,  against  1,278  271  lor  the  corresponding  month  la$-t  veur. 


ClasBes. 
Bank  ehares 
Railroad   '' 
Coal  " 

Mining  '' 
Improv*nt** 
Telegraph  " 


1868. 

93»,945 

6,815 

4«,716 

15,015 

85,957 


iseo. 

Increase. 

I>cc. 

,    8.209 

<i6A 

),367,40i 

618,066 

•  •  •«  • 

8,8(t9 

1.5US 

88,014 

• 

11,731 

98,5110 

18,675 

•        •  •  • 

1S,0»< 

i.ve 

R4,51« 

•  •      mm 

K.998 

18.818 

•  *  • 

79.354 

1,696,489 

418,168 

•  •     • 

7,088,^88 

•  ••  . 

iiaeoT 

St«aniBhip»*    l»J,f05 

Kxpr*BB&c"   ..     ..       98166 

ToUl— May 1,978,«71 

8ii.ce  Jannaryl..       9,184,495 

Government  bonds  were  strong   through  nt  the  month,  prices  having  been 

sustained  by  a  moilerate  demand  for  export,  und  by  the  purchases  of  the  IVea^mry 
Department*    The  volume  of  busim  rs  has  been  liirge,  as  will  be  seen  by  the  Icl- 

lowing  tables : 

BONDS  SOLD  AT  THE  N.  T.  8T00S   BZCHANGV  BOA&I>. 

ClasBes.  1868. 

U.S.  bonds $91681,060 

U.S.noteB 4,830,800 

Sre&cityVdB .  8,7  9,100 

Company  VdB 718,000 

ToUl— May $80,998,9^ 

Since  January  1 121,9AC60 

The  daily  closing  prices  of  the  principal  GovernroeDt  securities  at  the  New 
York  Stock  Exchange  Board  in  the  month  of  May,  as  represented  by  the  ktat 
sale  officially  reported,  are  shown  in  the  following  statement : 


1869. 

Inc. 

Dec. 

$94,461,100 

$2,880,060 

^•«*««»« 

•  •  •  •  •  • 

•  •  «      •  • 

4,8SU,80d 

6,817,809 

1,668,700 

9849,149 

9,194,1,9 

« ....  « 

$89,611,049       $l,689,0n0       $ 
161,680,809       99,666,758 


PBICZS   OV  GOTKRNXBKT  BBCUBITIBS  AT  HBW  TOBK. 


Day  of  «-6'e,  1861.--./- 

month.  Conp.  Reg. 

1 118X  

8.  ....••...••..•*...>.•«••  •    ....     119  ••... 

4 119X  119 

6 118)tf 

6 119K  

7 ll^^  ... 

8 118 

10 119)tf  

11 119Jtf  

19 190  190 

18. 


14... 
16... 
17... 
18... 
19... 
80... 
91... 
99..., 


191       190X 


139 

123>i 
198>i 
199X 
199^ 


94 191>^    1993^ 

95 


96. 
97. 
98. 
99. 


>•■......■...... 


■••..••• 


190X  1903^ 

UIX  190>tf 

192  191IC 

199  19  H 


:-4j'g,  (5-90  yrs. 

1869.  1864  1806, 

117K  113H  ..  .. 

n^X  lUX  115X 

118H  lU  1)5K 

n8x  118X  nsx 

114  115K 

117^  mx  114^ 

•  •  • «  ■  ^X09%  •  •  •  •  • 

119X  116X  n6)i 

119  116K  116 

1193^  1153^  1169^ 

119^  116  116|( 

1903^  1163^  116X 

....  116  116K 

1913tf  1^63^  tV'H 

199  117  118 

IHH  1173^  11^3^ 

UZ9i  inji  1193^ 

i98>r  i"¥  

1983^  1173^  1193^ 

19  3i  1183^ 

1913^  116K  1133^ 

199  115M  n'^H 

199  IIHX  1183i 

1993^  116K  1183^ 

1993^  117  118K 

1993C  117K  IWi 


)  Conpon 

new  W. 

H63tf  1163tf 

116H  11«»X 

116X  ll'^H 

ll«iK  116)( 

11  X  163IC 

115X  115X 

116  ll»*3k 

1171^  1173^ 

1173^  1173i 

117H  117X 

llbjtf  11>3< 

llb3^  11-Ji 

119  119 

IW  1*20 

190  190 

1193^  190!^ 

190  190 

1903^  1»*3^ 

119^'  nox 

i:9K  lt93( 

IISV  118|< 

1193?  1193^ 

119K  ll$ii 

1193^  1X9% 

190  180 


■^5*B,1(MI 


...    .  10?)> 

lo^S 

ld-»fc 

V^S 

lUX  lt>*H 

115%  lCC,i 

II  >K  1^^ 

inx  i«^^* 
i*j< 

IteJi 

118  V^ 
ie9>i 

.  iwjfc 

1Q9 

119X  10»^ 

1903i  l^»h 

1<0J<  110 

190  liS^Jk 

1«H  1<i9% 

190  Ii<»3k 

l!93tf  lOiii 

•  •  »  •  •  •  V* 

119  1«8V 

ii5j(  imn 

l«3i 


Firrt 1183<  119  U7H  Ut%  116H  1163^  lt63tf  ll63tf  l«Jtf 

Hlgheat 1983?  l^H  l»H  1173^  ll»H  IVfhi  1»»K  1«S  Ji£^ 

Lowest 118  llbS  m3  I183J  M43tf  IWX  11*2  1»X  1«»V 

Last .,  199  1913?  VHK  U7  II8X  UO  110  11936  IH^ 


OOHHKROUL    OHROKICLB   AND    RITIKW. 


Tbe  IoIIowIdk  table  mil  'bow  the  opentog,  bifiaeat,  lomesl  and  clmiuK  prices 
01  all  tbe  railway  and  miscellaoeoiiB  securities  qnoled  at  tbe  New  Yorif  titock 
Eicbauge  darJDi;  tbe  moatbB  or  April  and  M"y.  1869  : 

, Apcl] ,  , Kit . 

Kill  ru&d  Stock*—  Opeo.  BteB.   Low.   Cloa.   Open,  Uleli.   Lw.   Cloi. 

UtoaATtmBnO. M         £x      W         IK<K      S»         M         SS         IH 


Chiago,  Barl.AQnlDcr ITS  ITS  :TS  ITO  ISO  IW  IBO       IW 

d't       A  Nonhnrmt'a b4  SIK  Ba  tIT  tOH  M         «S         91 

do  dounf van  I^M  DIM  S83i  ^H  lUtV      MX    I'^M 

„do       ARockliiud. 1J8  IBB  na  imi  IW  lS-]«  m       im2 

Co[nnib..Chlc  AIU'I.  C. 44  *»  Hit  isi  M  4T  tl>i       mte 

ClcT. .  A  PltUbDIg WW  H  SbSf  Stit  Wit  MX      M 

do    ATolsdu VJ  «T  MX  <*'X  

_do   Col., tin  AiDd "  ~  "  "■'  

D^..  L«k  *  Wnlani 

Dubnqns  AdioBXCltj IIA 

Htiem 18»« 


TO 

M-5 

W 

mv 

7S« 

MV 

TOV 

,t 

>MJ1 

W)H 

'SJi 


DQibal  A  St  JoHpb 


lUr.  Adadn.ilit __,.      ...  __ 

"                         3d     "    BH     tH  Xt  ^H       ••  •  D 

Ktetleaa  Central imii  13:1  llSlf  ]»>  138  IWK    IM 

£o       s.  AN.  Ind tta  1  ax  <i>''X  lOiM  loax  iie»   108 

MIlwaDlBe  ABi.  Paul It         8i  ei)(  H  WK  Vi>t      Tnx 

„    a.,                dopret. BOX     88  so  *«  S'X  "M     » 

Moirig  A  EH'I IB         bSX  87X  SVi'  HI  HI        Xt 

Mew  Haven  A  Hutfcrd KO  KO  !IOu  100  110  !I0       310 

5ewJ>:TMT  .    114  IM  111  1*1  1«T  111       iiT 

_    do         Ceiini l«)f  11*  108  lUX  li'K  "i       »:i 

Kew  York  Can  ml I«1K  ITGK  I'SK  ITS  1TTX  IMX    IT  X 

do         A.S.aaT'Q IM  m  1«  131  ISO  Itij       130 

do                do     Kiln ...  1*)  1»       1*1) 

Norwich  A  Woneitar 100  101  100  10«  I'M  inn       Vn 

Ohio  A  MlsAlblppl H3         S4X  «3X  S-W 

du                do         pref M         TB  TO  IB           ...  ._       ...       

Fuuma 819  SSO  SIS  S*S  Sia  S33       SUU       800 

Plt.tt).,  Ft.  W.  ACLld IMX  IS*  IM  1  TX  1«  lnB!<    I "' 

Beidliuc     ..    .     Bl         n>i  Bl  Vl>i  MM  lOlX 

K'me.  W.AUKdeuBb'E 110  lit       1 

Slouington   88         BB  S3  S3  

Toladu,  Wib.  AW«t«m «         T3X  UV  ^"H  IBX  IBV 

do         d<i          dopiBl 7IX      BO  TTM  TB  7B  SxX 

MiKellanaoiu— 

AiDMltAu  Coal 10         40  40  40  

Oatnl t  If     MX  IHX  BtX  M  flS 

CnmbcrUDd  Cotl M         88  80  K  snx  SB 

Sc]   dc  Had.  •  analCoal IMX  1»  i»it  1>Q  IBO  IH       1 

BprrnE  HoaniaiB  Coal 44         H  II  44  

Wilk^r.e  C-al 8S  IB 


4^0                              OOUHkRCIAI.    OHROHICI-a  AND  BKTnW.  [iTtH, 

AtanttcHall ■>  «  n  «  

PacincMiill ..  SVK  9M  HSM  MX  »  KX  Uli     an 

Bariod  Wsicr  I'oirn IS  17M  10  Itt  Ifl  UK  »       U% 

CiDiuD M  SI  EO  as  MX  UK  ».S    H 

Brnntwkk  CLlT 9)4        BX       »«       •«       •  S  «li      S* 

MMripoM IK  »  WX  iu  M  MX  :••«    tiM 

du       ptel S4  4tX  M  41  «<K  U  llx    Wi 

QalckpKver 10  HX  W  U  M  KX  »       H 

. r-_ n... 1.                j,j^  4jjg  89  43j(  4,j^  44j(  „          ,jj 


itanken  A  Broken  A> IW       108       IM      If- 

Sionn— 

Aiii.r.c«oU.Doloii 40X      «         I9X      HK      H         ti         :"X    B 

Adanu K         b3         KXeS         «S         aH« 

UniUdStatei Ob         B8         M         t8         63         tj        U       Mli 

HecelUDt'i  Union ISX      IS         IS         16         UX      »        UK     KM 

WellmFuKoACo MX      SIX      K>^      M         UX      MX     'lit     "i 

The  gold  proiiam  bas  fliictaai«d  wideJ;  dariD);  Ibe  moDtii.  The  rue  to  1441 
was  inimediabJj  due  10  Ihe  failore  of  Schepler  A  Co.,  who  were  beanljibirt 
or  gold,  and  were  unable  lo  make  good  their  cootracts.  Thin  boaae  had  oec«|iM 
a  leiding  posilioD  in  baabing  and  foreigD  eichaoje  circles,  aixl  wereaboil 


ima.  IBSft  Int«a».  D*^ 

, a,tx\vK     i.a»,<«s     £■£ 

Inporu  of  com  and  DDinaa 48(LCM1  sa,iM       !*S 

CJoln  InterMt  paid. IT.OGUn     It,g81.4»       Vji^ 

Total  MiortoflinpplT no.(B^in  tUMMO^Hl  $ JfSS  ' 

Biport.  of  colnand  bBiXon |t8.BIB,geo     »«l»,»iB  '^     _!!•■*"*   I 

CDnumadnUM „ KUtOMIl     1(V)M.«1I         «,«9T   ^_^ 

Total  withdraini ^B3B,Ue  tU,Ha,Wl  t ^SI^m 

XzeaaaafnporMda'pplT S,n>,Mn  UlM^     

Bpade  Is  baaka  Incruiad 1.«M,tU       8.«>lMa  MBM«  ^^^^^ 

OsilTadfroiiiunponadtoiiRas "ttfiOpK   tB,ltM«  • '>*'^"* 


869] 


JOURNAL   OF  BAKKINOy   OURRENOT,  ANA  FIKAKOI* 


471 


The  following  exhibits  the  qnotatioDS  at  New  York  for  bankers  60  days  bills 
1  the  principal  Eoropr^n  m  «rket8  Hailv  in  the  month  o\  May.  1869  : 
oouBss  or  roaiieN  szchangs  (60  days)  at  nbw  tork. 


iji. 


London, 
cents  for 
64  pence. 
109jli^    .. 

10      &[0^H 

100^^109^ 

H}9H(^    .. 


Paris, 
centimes 
for  dollar. 
6lfX    ftn3i 

M7s^7/ftl7?^ 
6l7H(^17Vi 
517M(§^^17i^ 
6l7j*(a5l7X 
617;<(a517)i 
8nH(8t5i7i* 
6l6Ji®5:7Ji 
6l«.Ti(ft''17i4 


••••••• I 


io«>i(a  ... 

109;«'^     .. 

io^x@ioos 

lOsikC^io  X 

ioovb((aoK 
l<H»)i(J^  ... 

10«^((]^  ... 
10  J?,®  . 
10'^ii.l09X 


If.  Ift»^9 ]09    aiO^Ji 

J.l^il 109J<^1  Oj< 


6lrt34(r«515 

6lft)it(r$5i5 
61^iX<^"'15 
51J4C^;»517M 

6l8S'f^5  7^ 

sn^^ii-iji 

6i8,'S5I7^ 
6l8;4(^l7>i 

618?4'^15 
61 '>i(a-^llJi 


Amsterdam, 
centp  for 
florin. 
40V(??^»0)tf 
4UX(a4>H 
4  >i®40j< 
40)ito4OJi 
40^@4iH 
4'»4(8»10>i 
40><^4(iS 

40>tf(^4()S 
40>^@4iH 
40  ^(TM^ 

4'>X®4tHii 
40>i((;^*0>tf 
40^(^4  f^i 
4'tS^40Ji 
40>i'(!H0>i 
4<i>i@4'X 
40;,(<^40>4 
4'?^  (9^40)^ 

40»^r^^«n)^ 
40>i@40ji 
40^((i>40>i 


40^(^4031^ 
41>i(a41H 


Bremen, 
cents  for 
rix  daler. 

78?i^7^Ji 
7t<5i(8^7SJi 
7.":*S(??>7<sji 
78>i(;^7s>i 
78\(fli7^Ji 
78J*,@78h; 
78>i(<t7y« 

7b>v@7.>X 
78.^C<07:<^ 
79)«a  ... 
79>i@.... 
7»>tf (^  ... 
7^?ii(a78ji 
78>iC<678^ 

78>i(r078>tf 

78M(?^  8>i 
7yii((^78?^ 
78^@7s)i 
78M^'07S'i 
7  ^»^(ri>7sji 
78>4(4i*T.-J>i 

78    (a79X 
79?4'(a7'.«X 


Hambnrg. 

cents  for 

M.  banco. 

85?i@38 

8«  (aH«)tf 
86  (gh3B!^ 
86    @86«i 

»i%(a  « 

86'4<a:i'^Ji 

86Ti(rr/3tt 

8^%^H6 

865i((?^l  K 

855i(S^:«Ji 

86^4@■^'iJ^ 

85?i(a>-^rj 

85V^^6V 
86K@3t$*^ 


Berlin 
cents  for 
thaler. 

71  (fi^TlV 
75>s^l>71X 
7l>i'471itf 
71'Kf??i71J^ 

71  >i  (31713^ 

7i>»/(i:iX 
■l)»^'i)^ 
71>ir(nTl)^ 

7i>*rt^71X 
@  ... 
71    (TrTlX 
71    @;71^ 
71     Gf>71K 
71^4^i>7-i 
7U4(</i72 
71^^72 
7  J^,e7l 
7 1     (?^71>^ 
7UJi(g>7l 
7  J»6i>U 
7  Ji(a71 
70  ,Cc(,71 
7'«',f},7i 

Ti?',{(?i71 
'tOT.ffiin 
70?ict>71 

7<'Tr(?/'i7a 
7i;i@7i 


mixVAL  OF    BANKING,  CURRENCY,  AND  FINANCE. 

^o:ditlon  of  National  Banks— Returns  of  the  Nevr  York,  Philadelphia  and  Boston  Banks. 
At>nrart  of  the  n  p  rts  ma  e  t  >   the  <  omritroller  of  th^  Currency,  sli  win^ 
^cnn,iitiau  of  the   NHtinnal  Biiik-s  in  the  United  States  at  the  ciise  of  busi- 
i^oD  ihe  17th  day  of  April,  Ifci  9  : 


EKSOUaOBS. 

an^  aod  disoonntfl 

'.nirafl* i , 

j<t  d  ^lAtes  bonds  to  secnro  circulation 

U'-c'  >uted  bonds  t'  •  st-cnre  depo^im 

if-^  ^(ntes  l>or>d9  and  se<  aniies  ou  hand 

>^r -ticks,  bo<  ds  Mnd  moitgagii 

>•:  ir  •»!  redeeming  agents 

iff  ra  National  oa  k  

'  r  om  other  banks  and  bank- rs 

'  ieMte.  furniture  and  fixtures 

rre  texprnses •••». 

*   im^ ^,,. 


$658,794,.''46  6 

a,s48,?f)0  05 

887,7?<«*,7.':0  00 

2H.«.'l  8  0  0»i 

:0,.')04  t^OO  (K) 

20,0:ii.!i7«  61 

67.r)25,918  9a 

8<»,5a).  8•^  69 

7,W>873a41 

28,7f.S,19-J  97 

6.r.jK,n,3  SI 

1,658.617  91 

'  ck.  a  d other cat^h  i  ems   ...  16.J,97w.!»«()  n 

'  ■            "                                                                                                11,719,818  00 

12<'M»0  00 

2,0  6,7/2  71 

M'3,7<18  06 

8<»,67i,7.H8  00 

40,8  iO  CO 

61.lN\0i)0  00 


of  Nat  onal  b'jnks 

'  '  f  oihcr  baDk«» 

■  c  i-tQii  Cirrtncy 

"-*  t  ndrr  notes         . . . , 
'-p-iutd  interest  noten 
^'■^  per  ceut  cet  tiflcates 


Tot'l $1,610,302,91^19 

LlABILITlKfl. 

'  '  1  'oc»r $430,368,730  60 

i  "jf  nd    

■   ^iflvij  profits 

-  <^"'si  bank  r.otcs  on  (Standing 

-'   i'uiiW  CO!  es  out  standing 

•    Qiluepojiiis 

•^'i  "ti'w«iiepo#lti» 

-"U'Ol  Unitea -tA.ee  dirbnrslcg  officer 

'0  NaJl.,nal  banki^      .    

"lo  other  ^aoKsa^d  bankers 

*  ''^«au<i  !>ili4  re-di:conut«  d 

-ii«i«jtblo 


8-j,ii;ii4;4  19 

87,40-.>,U.8  .H8 

9,«15.:ta7  00 

292,v0i,.5  <8  UO 

647,7lV.rt-27  li 

10,035i  861  76 

3,584,953  66 

9^,661,203  03 

22,7  .1,40.5  M 

2  4I4.8.9  H 

l,860,v<18  26 

Total $1,616,801,948  19 


472 


JOURNAL  OF  BANKING,   0T7RREN0T,  AND   FINANCK. 


[/«iie, 


Below  we  give  the  retorns  of  the  Banks  of  the  three  cities  since  Jan.  1 : 

nW  TOBK  CITT  BAMS  BBTUBH8. 

Date.                Loans.           Specie.       Clrrul  Von,      DepoelU  L.  Tend*!.  Ap.  c*cair*! 

jBDuarj  S....$969.<>90,057     $S0,78t(,]«l     $»4.879,fO»     $lf0.4fl0,445  $48,896,4S1  |M.:0«^ 

January  »....   258  792.5^8       27.3H4/<80       84,844,'58       187,90^M»  61.14M«8  70  .T'f.flSl 

Januiiry  18...   S62,a38,88l        20,2:8.688       S4.2;tt.l68       1I»5.484«843       69.1H7,0e8  r»,'^fi.ml 

January  28...   S64,S»54,()  9       28.MJ4.197       8u2K5,U  8       Ifl740:j63  54,022,;19  67, £84 MS 

Janaary  fcO...   285,171,^)9       27.7M,0S8       84.38!,  68       196.985,4f2       64  747.569  eie.»  ,?f 

FebruHry  tf.  .  9H8.64I,73I       87,9S9,<I04        f4,S48.4!)8       198,60>,899  63.4:'4,183  V^>Q:^.rm 

February  18..   264,880,4(,7       S\854,8S1        84,288,451        1V2,977,H»  52.884,»t  6bu,TMf» 

Febm Dry  21..   968.42.^08 •«       28,V1,>91        84,247.821        187,8!2  646  60,997.197  no  ,991.019 

February  27.,  261.871,^97       »i,832,603       84,247  981        1^,218,176  60.88S.(i64  6:(!i,-:-.>& 

March  «....       262,089,883        19,4h6,«.34       84,27\8S5       182.604  487  49,l46,r.e9  727,1  &.l^ 

March  18 261,«  89,695       17,H68,h71        84.690.445        l►2.392,4.^8  4'.*,689.e2^  6i«,  T;^« 

Ai  arch  10 S68,098,}i02        16,214,908        84,741810        183,&04,9W9  60,774,874  7»X71«.(|i« 

Mar  h  27 26»,909.6^9       12,0^8,722       84,777.814       lH),n8,9l0  60,566.108  '.97,d>7,«8 

April    3 261,983,675       10,7^7,889       81,816,918       176,825,7HB  48,496,859  887,  23.£»l 

Apr  110 257  1^0,•i27         8,794,M8       84,60«»,J!60       ri,495,6-0  48,t»44,74  8lt,'«  .45S 

April  17        ..  266,184,889         7,811,779       84,486.764       17«,S0:1494  61,a»l,  88  T».3h5,*4 

April  24 267,468.074         8,850. '60        84,0rX>.6  1        177.810,080  6^,677,(j98  75^9(6  TM 

May   1 260,4.36,lfi0         9,2h7,6  6       88,97v,0r>S       188,94»,6<i6  58,49fs,7ti  7^'.«>\^ 

May   H 268.48«,872       lH,<'ai,4'9       88,9h«,l«0       19,8  8,87  66.109,.^7S  9'l,i74.577 

May  15 869.49\8t«7       15,874.69       a3  977,793       199,892.449'     66.601,866  Mi»  74at^ 

May  2.' 270,276,962        16,429,404       }'3,9S^8^6       199,414,869  67,8  8,- 4«  7^747.«:« 

May  20 274,986,461        17,871,280       88,9;20,8u6       903,056.600  67,810,873  7Si,t46.l» 

PHILASBLFHIA  BAITX  BXTT7BNI. 

Date.                               Loans.           Specie.    Legal  Tenders.  Depoaita.  drculttica. 

Januaiy4 $51,716,990         $862,488         $18  210,897  $88,121,023  $10.591719 

JanuMryll 61642,837           544,»)91           11,49h.io9  88,788611  lu.3S  ,?:2 

January  18 62.122,738           478.462           18,720,498  89.626,158  10.5«'fi* 

Janu  ry23 62.6:n.016           4118^7           14,061,^70  >  9.586,462  ]0.5^^»:4 

FebUiiyl 69,6.'i2  818           8  2,78 J           14,)rt*6,670  99,677.948  10,5' V3$l 

February 8  &H.059.716           St., 0  1           18,785,699  40,0e0  ::99  10,5^6,552 

Feburyl6 62.9W,89l           i04,68l           18,573,048  38.711,675  10.  B^tsl 

Febr  ary22 62,4'6,l4«           S.'l,807           )8.«08,607  87,990,968  10,4  KHI 

March  1 62.261,851           856.t48S           18.01 0,.M*8  87,78&.%05  10,4\n54« 

Marc    H 62,28?!.0U0           297.887           18  25^201  88,298.966  10,45r-.86l 

March  IS 61,911,6«9          t77.6;7          18.028,2(17  87.67>>,68S  10.4'a.>!*l 

March  29 61,828,419           t.f6.097           12,766,769  S6,96A,UQ0  10.4M.4M 

March29 60697,>00           210,644           18,021416  86.868,844  10,4:!^4ll 

April   6 (0.499,H({8           1^9,0  8           12,169,221  86,875,864  VK*'ti,m 

April  12 60,770,198           164,246           12,648,857  86.029,188  10.H^.1M 

April  19 »1,>78,871           267,818           12,9*1,783  87,081,747  10.6.1k« 

iipril26 61,294,922           1M,261           18,640.063  87,487,985  10  6i4,4(rT 

May   8 61,510.98)           901,768           14,2:0.371  88971,9il  ia.6:T.nS 

May  10 61,936,590           270,626           14,621.808  89.178,808  1Q.»7.9»4 

May  17. 6^168.626          r6,167           14,696,865  40,609,749  10,M4.oj 

May  24 62.8H1,764           174,115           16,087,006  41.0^,410  10,6]•^SI6 

May  81 62,210,874           183,267           16,484,947  49,847,819  lt),6.S,ya 

B08T0X  BAHK  RXTVBXI. 

(CaplUI  Jan.  1,  1866,  $41,900,000.) 

Date.                             Loans.            Specie.     Le^^  Tenders.  Deposits.  drcu^atira. 

jMnnpry4 $08,423.M4         $^203  40l         $l2.9M^88i  $87,638,787  $i&,l5l.34S 

January  11 1(:0,727,0<7          8,076.844          19.6K4.700  88.0:».80t  9S,27K*>7 

January  18 102,206,209          2,677,»iS8          12,9^,827  89,717,198  95.:H3,« 

Janu  ry  26 102.960,942           2.894,7^0           18,928,874  89  66:,747  95.27280 

FebruHiyl 10S,69h.f>6'i           9,161,984           12,HM  226  40,996,469  ».S119*^ 

Feb  nary  8 104,842,425           9,073,908           12,462,795  89,698,6^T  9SJ»1Q^ 

Febraaryl6 108,216  OM           1,845,094           11,642,666  87,789,T.9  25,852.1» 

February  28 I(i9.-<152,689           1,646.418          li.v60,790  86,898,814  15,2010M 

Marrhl 101.309,689           1,288.984           11,900,149  86,>«9,466  9^801.S.n 

March  H Iiil.426.«m2           l.'^97,690           10.086,979  86«596.660  95.8)6,377 

Marc'ilS 100.820.308           1 2  7.Mli           10,».9,188  84,081,716  95.8r-l.C4 

March  22 9l«,658.81 9           1,8:V).864           10,490.448  89,641.057  9CH9,S* 

MiirehSO 99,670,946              937,769           11,646,9M  a9,98^4^  t8JM.]«7 

April   6.... 96,9(.9,'.14              FR2,276           11,W8.884  83,604,099  K»^7J.7H 

April  12 09.626,472              759.160           11,891,5.^9  34,399,877  9aw836.WI 

ApiillO J-9.1lr.,r60              63M,460           ll,4l9,996  34,257,071  tS»3alJ»4 

Atrll96 98.1^1,711              617,485           19.361.627  85,802,208  W^n»752 

Mny   3 100.127,411              708.968           12,862.113  86,738,749  25.8»l«« 

May  to HK»,6A642          l.-.b7,749          12,618,478  87.467,897  9\82US 

May  17 101,474.627           l,134,^86          12,(88.687  86,706,804  95.'«.«« 

May24 102,042,18i              93l,M((i           18,194.519  89,817.861  95.«>W 

May81 10.\6-(8,278             772.897           18,696^7  8&408,6M  95A73»23I 


I 


JCERCHANT'S  MAGAZINE 


COMMERCIAL    UEVIEW. 


WILLIAM  B.  DANA: 


VOLUnB  IIXTT^ONB, 

VTMM  JULY  TO  DECEMBiiR,  INOI.OSIVK,  ia69. 


Nem  Dorlf : 

*A.,  PUBLtSHEIt  AS'l)  PilOPRlErOK. 
n  A  81  WILLUM  B' 

iseu. 


ALPHABETICAL  INDEX 


90  wmuwfff  PUTf AonB  nr  tkm 


HfiRCHANTS'  MAGAZINE  &  COMMERCIAI REYIEW 


ToLWXB  LXL 


FROM  JULY  TO  DBOBMBER,  BOTH  INCLUSIVE. 


EDITED  BY  WILLIAM  B.  DANA. 


9kMM 

A. 
Afrieft,  trade  with  ihecolorad  raeet  of,    16 
Aferiealtural  ttotlstiei  of  tbo  United 

Kingdom 108 

ArkansM,  debt  mad  fioanoes  of .  •  •  •    882 

B. 

Bank  OoDT«iition • .  •    87 

Bank  Retains  of  tbe  Uaited  Statea 

April...; 60 

Bank  retarne,  condition  of,  in  April.    48 
Bank  retnroe  of  New  York,  Phila- 
delphia and  Boitoo,  79, 167, 287,  X17, 

897.4'»9 

Bank  ootea,  redemption  of. 97 

Bank  itatement  for  June 178 

Cankf  of  United  States,  retoms  for 

Jane... 206 

Boston  hank  retnma,  weekly,  80, 168, 287, 

818,898,476 
Brsadstaflk  moTeoient.  ......••.  96, 275 

Breadstolb  in  the  west 99,101 

€. 

Canada  railwayp 148 

Canada,  independence  of. 820 

Canada,  the  reciprocity  movement  •  428 

OsntlTf.  Railroad 179 

Central  National  Bank  defalcation.  .  126 
Chicago  A  Northwestern  Railroad..  187 


FAsa 

Chicago^  Borlioffton  dt  Qaincy 146 

Chicago,  Bock  Island  4  Pacific .    66, 1 88 

Chicago  and  Alton  Raihnoad 486 

Chinese,  immigration  of  the ...  •  21 8,  2 1 4 
Cindnoati,  Richmond  A  Chicago  Bail- 

road. 454 

Cincinnati,  Hamilton  4  Dayton  Bail- 
road 468 

Coal,  and  the  tariff. 169 

Coton Crop  Statement.... 294 

Cotton,  enltiration  and  prodoctioo,866, 191 
Cotton   Manniactarers'   Aesooiation, 

reportof  •.....•.••...... 878 

Cotton,  eooaamption  and  stock  of  . .    71 

Cotton,  fntore  prodaction  of ^ 

Cotton,  gold  price  for. 871 

Cotton,  consnmption  of  in  Europe. , .  877 
Commerciid  condition  of  the  conntry.  1 
Commercial  Chronicle  and  BeTiew,  74, 

168,282,818,892,464 
Consols,  price  each  day  ...  .76, 166,  894 
Crime  and  Paaperism  as  affsoting 
Material  Prosperity. 889 

D. 

Debt  of  the  United  States,  Monthly 
Statement 78.  162,  228, 888 

Debt  of  United  Statee  and  the  Be- 
doction  of «..•. 148 


Tl 


UTDSZ  10  TOLUMl  LZL 


Debt  of  Unitod  Statit  tod  lotomi 

PftymeDtt 174 

DebtFiBAoces  of  NewHimptbira.,  180 

DebtFiDftooe  ofArkaosM 882 

Debt  FfoaDeei  of  North  Carolina. ...  884 

DebtofTeoiieisee 866,448 

Defalcatieo  of  the  Ciotral  Naiioual 
Bank 126 

BaetTeoDeifeeAOeorgriaBailnMd*  889 
ETaDiyillt    A    Grawford«?ille  RaU- 

road , 469 

Fxehange,  RaUa  of  eaeh  day,  78, 

167,287.817,898 

FiDaoeial  Outlook 86,  46, 1 28, 167 

Fioao'  ill  Qaettioo,  Repudiatioo,  Ac.  420 
Floating  CaptUland  New  Loana. ...  481 
Foreign  Loana,  objoetiona  to •  866 

Ovnerai  MoTf ment  vf  Coin  and  Bal- 

lii«  at  Now  York  in  October,  1869  450 
Georgia  Railroad  ^  Banking  Com- 
pany.     62 

Georgia  Railroade..*. 148 

OoldMoTement... 42 

Gold,  moTement  of  eoin  and  btdlkm 

monthly 78,  848 

Ckld,  prieea  each  daj  of  month,  79, 

166,286,896,816 

Odd  Cli<qnea  and  tbe  Criaia 842, 846 

Gold, price  for  cotton.   ••.. 871 

Great  Britain,  trade  of. 6C 

Great  Britab,  annual  aavioga  of .  •  •  •    61 

Hartford  4  New  Haven  Railroad...  888 

Hog  Crop  and  ite  prodneta.... 447 

Hndaen  River  Railroad,  liable  for  ex- 
tra ftre 860 

Immigration ,* ,.,,    40 

Income  and  Savinga  of  Eogland 61 

Indiana  Railroad  Law 66 

Intereat,  rate  of. .  .74, 168,  282, 118.  892 

India,  railwaya  of 159 

Iowa  Railroa;!  Returaa 148 

Iron  Raila,  export  from  Great  Bri. 

t»i'» 147 

litbmua  of  Tebuaotept  c,  route  acroe<.  1  a  8 

Jfrfffi80D?il]#,  Vadiaoii  A  Indianapo 
lia  Railroad , ,     890 

Kanaaa  Pacific  Railroad 64. 67,  891 

L. 

Looifville  ConTention. .••• 864 

Louisville,  Ciocinoati    ^  Lexingtun 
Railroad S76 


VAOI 

Marietta  ft  Oineinnaa  BaaraadM.61.  W 

Midiigan  Omtral  Railroad 146, 20t 

Minneeota  Railroade M 

Miaaiaaippi  Bridge  and  our  Internal 

Co«meree 279 

Ifliaonri  Pacific  Raitroad 4M 

Mobile  ft  Mootgomerj  R%ilroad. . . .  224 
Money  market,  fntnre  of,  86, 46, 128, 147 

ir. 

New  York,  Foreign  Commerce  of  .  •  •  •   48 
New  York  Banka,  retnroe  weekly,  79, 

U7,  287.  817,  t»7 
New  York  Central  4  Hodaon  Rival 

Railroad,  tcrma  of  conaolidation  .  451 
New  Jeraey  R^ilroada  • .  • .  • .  • .  Hi) 
New  Hampahire  Debt  and  Finaocet 

of        IW 

Northweat  and  tbe  Breadatufia  Hovr. 

meat 99.  t<^l 

North  Carolina,  debt,  Ac. •••  .  884, 46^) 
North  Carolina  Railroade 887 

P. 

Pennaylvania  Atate  Debt 460 

Philadelphia  Bank  Retnme,  weekly,  80 

168,288,818,897 
Prioae  of  Gold,  Stocka,  Bonda,  Ac,  aee 
•  Gold,"  *  United  Statee  Bonda," 

"Railroad  8harea,''Ao 

Pordiaaee  of  Goverunent  Bonde,  844, 868 


Railroad  Liabnity,  for  taking  extra 

Ikre. 860 

Railroad  T#.  C«inal 179 

Railroad,  Ohittgo  A  North  Weetem.  181 
Railroad,  Marietta  A  Ciofionati.  ...  187 
Railroad,  Michigan  Central  ....148,202 
Railroad  Eaminga,  monthly, 4f,  217. 

284,849 

Railroad  Progreee 289 

Railroad  Analyeie,  Marietto  *  Cindn. 

naci  •««•  •••••    ••••••••    vs 

Railroad  Report,  Georgia  Railroad 

and  Bankii  g  CtHopaoy 6i 

Railroad  Report,  Kanaaa  Pacific*  64. 

67, 891 
Railroad  Statement,  Annual,  Cbicag^, 

R<>ck  Mand  ^  Pacific 66. 1  St 

Uaitroad  L%w  of  Indiana.  •  • ^1 

Railway,  Weat  Wi  conain 64 

Kailrua  1  Sharer,  prieea  of  «*ach  iiionth 

77,  166,  S36.  816,891 
Railroad   Analyaia,  loIoJj,  Wab^ 

and  Weat  rn 101 

Railroad  Report,  Cuicai^o,  BurliugUin 

andQiincy • ^44 

R«iilroa<t  Ciauiities....     •••....      S3l 

liailinada  of  C inada •  •  1^^ 

Kiftilr9ada uf  Q-orgia                    ....  1^^ 
Railroade  of  New  Jeraey.  •  • 1^' 


3KDKZ   TO   VOLUMB   LXI. 


Til 


Jiilreta,  North  Carolina 387 

Kiilrotti,  Jefiereco,  Madtsoa  A   In- 

dimtpolw 890 

KaiUraja  of  India 160 

«Hroa<l»  of  Iowa 148 

RaUraadsofBilinnetota  ....  149 

Railroad,  Harlfcrd  A  New  HaTWi..  888 
KaUroad,  East  Tenneasae  A  Georgia.  889 
«)|n)ad,  Raritan  A  Delaware  Bay. .  806 
Railroad  Itema. . .  148.  227,  801,  887, 461 

AedemptioD  of  Bank  Notea 97 

Raanniption  of  Specie  Paymeota  ...  286 
relief  from  Fiacal  Bnrdena.  .••••• .  440 


Siluy  of  AaaialaDt  TVeMorer.  • . . . .  869 

8«nth,theFqtoreof  the 4 

8oitth,Uaimlactiirii)gattiie 91 

Sonth,BanoeMOhaoges  in  the 868 

Swtb.  Labor  in  the 271 

»ped«  MoyeoBenft 78,848 

opeae  PiymenU .286 

Stock  Exchaoge,  Bnaineia  ©t  76, 164, 

fl.    n     1                            288,818,894 
SoeaCanal ,  ...  399 

!*^*«P;j?«»te 128.226 

JjajJieeDebl^dw 886,226,448 

1^  Oooditkn  of  the  MiMMhiiMtta 
loranoee  Oompaniei., 445 

"»  Sppieme  Ooori  and  the  Legal 
Tender  Act. H?,.  449 

TiM  DteeooDt  Market 487 

Toltdo,Wabarf»AWeattinIUfliwMl.  104 


Tran^porUtion  of  Breadatnfla '37  J 

Taxation.  Rednctioi  of      . . , . .  35  g 

Trade  ProapecU  in  United  SuteiV.*.       1 
Trade  oi  Great  Britain 59 

r. 

United  Sutep,  Oommeree  of ..,.,., ,    79 
UniteJ  iStatea  Debt,  monthly  atatV 

United   SUtea  Bon  j^,  prieea  of  in 
New  York  each  day,  76, 164, 284, 

United  Stetea  Bonda,  Qootationa  at 


london  daaT,..77,  I66,  286,  814,  894 
united  Stetea  Trade  Report,  82, 218, 

United  Statea  Debt,  Rednetion  of. .,  Ill 
United  Stetea  Bonda,  Porefaasea  of  . . 

United   Stetea  Debt  and  Intel^  ^^^ 
P^ymente.. .••......., jj^^ 

United  Stetea,  Reoeipte  and  Pay* 
mento  for  Tear....      1^9 

United  Kingdom,  Agricnltnral  Stn- 
tiatica  of. iQg 

Uanry,  Ptnaeentiona  for .'186,  219 

▼• 

^ira^ATenneyeeRidlwiy Bonda.  467 
Virginia,  Railronda  of 457 

W. 

Weet  Wincooain  RaUwiy^ 66 

Weatem  Union  Telegraph  Oomnnnr.  809 
Wheat,  f  c  of  Oraat  Britain. .  .\l08, 299 
Wheat,  4e.  of  the  Weat 96, 99, 101 


T  il  R 


MERCHANTS'    MAGAZINE 


AVB» 


GOlfMEBGlAL     REVI£W 


JULY,     186  9. 


*0^0^0m0t0m0m0^0m^i^0^ 


THE  COHiHERCIiL  CONDITION  OF  TEE  COD.^TKT. 

The  general  condition  of  the  industrial  and  commercial  affain,  thou^^h 
BOt  what  could  be  desired,  is  yet  far  from  affording  justification  of  those 
gloomy  raticinataons  in  whicH  our  prophets  of  evil  periodically  indulge. 
For  the  last  ^ve  years,  we  have  often  heard  that  we  were  on  the  eve 
of  an  nnprecedentod  panic,  which  as  a  severe  but  effectual  remedy,  was 
to  rectify  our  money  derangements,  explode  the  prevailing  inflation,  and 
place  affairs  generally  upon  a  sound  basis.  These  anticipations  have 
kept  capitalists  in  a  state  of  constant  fear,  checking  the  employment  of 
their  money  in  industrial  pursuits  and  inducing  large  investments  in 
securities  and  real  estate,  with  a  consequent  inflation  of  their  value.  It  is, 
W€ver,to  be  noted  that  the  predicted  catastrophe  has  not  yet  arrived.. 
^e  have  had  several  more  or  less  severe  spasms,  partly  the  result  of 

1 


2  THS   COMMSRCIAL  COKDITIOK   OF  THS   COUlTTRr.  [/ll{|, 

these  apprehensions,  part]/  of  irregularities  in  our  deranged  finADcesasd 
partly  of  extremes  in  the  inflation  of  securities;  but,  after  each  crisis  fiiirs 
have  lapsed  back  into  their  former  position.  We  have  even  vilhstoodihe 
effect  of  excessive  importation  and  of  European  panics  ithich,  in  former 
times,  would  have  resulted  in  disturbing  our  entire  commerd&l  sjttem. 

Tiiefe  evil  forebodings  have  been  based  upon  an  imperfect  coroprKhes- 
sion  of  the  situation  of  the  country,  and  the  agencies  by  which  its  deraoge- 
ments  are  to  be  adjusted.    The  really  effective  coritclives  of  an  onsoood 
condition   of   a  nations  commerce  are  natural.     The  evils  tbemsdves 
have  a  self  corrective  tendency;  and  though  the  remedy  may  come  slowly, 
yet,   where  there  is  a  reasonable  degree  of    freedom   from  extrsbeoQs 
restrictions,  they  come  with  all  the  certainty  of  natural   results.   Tb« 
violent  convulsions  are  the  consequence  of  conventional  restrictions ;  and 
panics  are  to  be  expected   when  and  where  those  restrictions  check  the 
national   operations  of  affairs.      These   views  receive  confirmation  from 
the  fact  that,  for  the  last  four  years,  the  business  of  the  country,  so  br 
from  working  toward  the  culmination  of  a  panic,  has  been  fandamentally 
improving.       By  this  we  do   not  mean  to  [imply  that  acme  interests, 
especially  the  strictly   commercial,  have  not  sustained   leases,  and  that 
depression  and  complaint  have  not  been  more  or  less  general-;  but  thsti 
in  spite  of   all  this,  there  has  been  a  ateady  return  of  oar  labor  ud 
industries  to  the  emplovmenta  called  for  hj  a  condition  of  peace;  that 
more   attention  has  been  paid  to  those  branches  of  industry  which  lay  at 
the  basis  of  national  prosperity  and  abundance ;  that  there  has  been  an 
increased  production  of  those   commodities   which  were  relatively  scarce 
and  therefore  dear;   and  that,  in  this  way,  we  have  made  rapid  vrogress 
toward  a  normal    relation  between  the  several  branches  of   industrr. 
The  prosperity  of   the  agricultural   interest,  in    a  certain  sense  at  the 
expense  of  the  manufacturing  and  trading  interests,  has,  with  faTorable 
seasons,  induced  such  an  increased  produclion  ol  breadstuffs  that  we  quv 
have  low  prices  of  grain,  to  the  general  advantage  of  the  whole  commnDitj* 
The  same    process  has  b^en   in  operation  in   the  cotton   trade;   and 
although  the  result  cannot,  for  evident  reasons,  come  so  rapidly,  yet  it  is 
e&sy  to  see  that  the  period  is  not  far  distant  when  the  pi  ice  of  the  great 
staple  of  clothing  will  range  upon  a  level  with  the  reduced  value  of  bread- 
stuffs.     These  are   most  encouraging  symptoms  of  recovery,  for  the 
cheapness  of  food  and  clothing  lays  at  the  basis  of  moderate  valuea  for  all 
other  products,  and  of  necesttity  must  be  followed  by  lower  wages  and 
lower  prices,  which,  in  a  free  community,  are  always  accompanied  »ith 
abundance  and  prosperity. 

Very  fortunately  also  the  seasons  favor  a  continuance  of  this  recupera- 
tive tendency.    The  abundant  harvest  of  last  year  is  likely  to  be  foll<^wed 


1669]  THI  OOIIUERCIAL  OOKDITIOH  OF  TDK   OOUNTRT.  3 

bj  aoother  year  of  plenty.  A  large  area  of  land  bas  been  placed  aider 
grain,  and  the  condition  of  tbe  crops  is  everywhere  reported  to  be  hiorlily 
satisfactory;  so  that  favorable  weather  is  the  only  remaining  condition 
reqnisite  to  an  abundant  supply  of  grain.  Reports  from  Europe  also  are 
satisfactory  as  to  the  prospects  of  the  next  harvest.  We  are  evidently 
therefore,  in  a  position  to  recover  at  an  early  day  the  old  position  in 
respect  to  stocks  of  breadstuff^,  the  main  essential  to  a  permanently 
lower  scale  of  prices  for  grain.  Tbe  prospects  of  the  cotton  crop  are,  on 
tbe  whole,  encouraging.  Reports  from  the  South  do  not  indicate  the 
probability  of  any  extraordinary  yield ;  but  a  considerable  acreage  has 
been  planted,  and  the  condition  of  the  crop,  as  a  whole,  is  promising;  so 
that  a  moderate  increase  upon  the  crop  of  1868-9  may  be  reasonably 
aotit  ipated.  This  prospect  perhaps  would  not  justify  the  expectation  of 
a  decided  fall  in  the  price  of  the  staple ;  for  stocks  ot  cotton  throughout 
the  world  are  low,  and  only  a  succession  of  abundant  crops  couid  place 
the  stocks  of  raw  material  and  of  goods  in  the  condition  which  would 
necessitate  a  settling  to  permanently  lower  prices.  It  may,  however, 
be  safely  calculated  that,  with  ordinary  seasons,  tbe  South  will  hence- 
forth isteadily  augment  its  crop;  the  cultivation  of  cotton  being  highly 
profitable,  while  the  means  of  the  planters  are  steadily  accumulating,  and 
their  labor  resources,  though  too  limited,  have  proved  to  be  reliable. 

The  condition  of  the  public  finances  also  affords  ground  for  congratula. 
tioD  and  confidence.  Tue  public  debt  has  assumed  a  more  consolidated 
form,  and  there  is  no  longer  the  occasion  of  an  unsettling  of  moneliry 
aSkirs  by  the  retiring  of  the  short  obligations  of  the  Government.  The 
necessary  financial  operations  of  the  Treasury  are  now  conducted,  appa- 
rently as  Car  as  possible,  upon  a  settled  and  known  policy,  enabling  the 
public  to  calculate  definitely  upon  the  movements  of  the  Department,  and 
thereby  obviating  the  surprises  and  frequent  derangements  to  which  the 
money  market  has  been  8ubj<>ct  from  this  source.  In  the  public 
'departments  a  piocess  of  moderation  of  expenditures  has  been  inau- 
gurated which  are  likelj  to  be  kept  in  force,  and  from  which  we  may 
anticipate  an  extended  reduction  of  the  public  debtor  a  diminution  of  the 
burthens  of  taxation. 

Putting  together  all  these  facts,  there  is  really  substantial  ground  for 
tbe  moderation  of  the  chilling  apprehensions  so  long  entertained  and  for 
iocreased  confidence  among  capitalists  in  tbe  employment  of  their  means 
Iq  prodoctiou  aud  commercial  enterprises.  All  the  natural  forces  at  our 
oommaod  are  working  together  to  effect  a  more  rapid  recuperation  than 
has  followed  any  of  the  great  wars  of  the  Old  World ;  and  nothing 
can  more  effectually  promote  their  beneficial  issue  than  the  ready  co- 
operation of  those  who  control  the  accumulated  resources  of  the  country. 


4  tm  BOOTH,  [Jidft 

There  remains  much  to  be  done  in  tbe  adjastment  of  onr  fioandil 
derangementB ;  bat  Dothinj  can  so  effectively  promote  that  work  as  the 
growth  of  activity  and  confidence  in  the  emplojaieDt  of  eapitAl,aa(i 
OBpeoiaily  in  production. 


THE  SODTH. 

BT  W.  L.   TBIHHOUf,   SSql* 

It  is  no  new  thirg  in  modern  history  for  a  people  to  llye  out  more 
than  one  phase  of  civilisation.  The  genius  of  Egyptian  labor,  the  grace 
of  Grecian  art,  the  power  of  Roman  Liw,  the  honor  of  Mediaeval  chWilrj 
— ha^l,  indeed,  each  in  turn,  flowered  and  passed  away,  bat  England, 
France  and  Germany  have  perpetually  renewed,  iu  changed  instit  itiou, 
the  vigor  of  their  national  life,  and  it  is  to  modem,  and  not  to  ancient 
instances,  that  we  must  look  for  the  true  type  of  oar  own  civilization. 

Death  is  the  oonsummation,  not  the  condemnation  of  life,  and  tke 
institutions  of  a  people,  like  thd  bodies  of  men,  must  die  In  order  that 
the  souls  which  animate  them  may  live  Hence  it  is  no  reproach  to  our 
past  to  say  that  it  had  accomplished  its  allotted  days,  and  that  its  dtaso- 
lotion  was  the  natural  prbctes  by  which  we  have  emerged  intoanewa&d 
larger  life.  Looking  back  now  upon  the  dead  past  of  the  South,  we  need 
not  blush  for  it,  for  its  life  was  vigorous  and  fruitful.  It  is  true  that 
long  ago  the  world  condemned  slavery,  but  the  world  has  never  known 
it  as  we  have  known  it«  and  history  will  yet  do  us  justice,  for  it  ma^* 
record  how  difficult  its  duties  were  ani  how  faithfully  and  soooessfaily 
we  diBcharjed  them. '  Haifa  century  before  the  war  when  the  slave  trade 
ceased,. the  South  contnined  less  than  a  million  souls  of  the  African  race; 
when  the  war  oooured  they  had  increased  to  upwards  of  four  millioos. 
These  fonr  million  descendants  of  savages  were  mo*e  orderly  and  moral 
than  the  same  class  in  any  other  civilized  country,  and  they  remain  ao 
np  to  the  present  moment,  notwithstanding  the  temptaUons  and  pri 
vations  of  the  war,  the  license  of  sudden  freedom  and  the  bad  advice  of 
political  agitators.  They  were  deeply  imbued  with  the  prindplesof 
Christianity,  insomuch  that  since  emancipation  they  baye  cheerfolly 
devoted  their  scanty  earnings  to  the  building  and  maintwnence  of  chardies 
and  schools,  and  the  establishment  of  charitable  societies ;  their  intelleot- 
ual  powers  were  stimulated  and  improved  as  f^r  as  they  logically  coold 
be  in  a  condition  of  slavery,  and  were  sufficiently  developed  to  furnish 
a  stimulus  for  oontinued  effort^  and  to  oonstitute  the  basis  of  their  fatiirs 
self  improvement. 

•  roH'Qu  of  aa  td<fnu  daliTirtd  bfW.h,  TKnkolm,  Ka^.,  on  tat  thiidaaaiTtnaijcrtta 
0kail«8tott  Hoard  of  Trade. 


1869]  THS  80UTR.  5 

STaverj  was  something  more  than  a  contrivance  for  consolidating  labor 
with  capita] ;  it  was  a  discipline  for  both  races,  a  school  for  the  form- 
ation of  character.  As  far  as  slavery  and  our  administration  of  it  are 
amen-lable  to  moral  judgement,  it  must  be  judged  by  its  influence  upon 
the  maturity,  and  not  by  its  infipression  upon  the  pupilage  of  those  whom 
God  placed  under  its  restraints.  The  masters  as  well  as  the  slaves,  the 
whites  as  well  as  the  blacks,  learned  many  noVe  lessons  in  life  at  this 
discontinued  school.  Providence  and  forecast  for  dependents,  indulgence 
of  the  weak,  and  an  habitual  consciousness  of  responsibility  upon  the 
part  of  those  invested  with  power — the  obligations  of  bo^or,  the  force  of 
character,  the  powerof  self  reliance,  the  sanctity  of  individual  rights,  the 
elevation  of  dignity  above  gain,  of  worth  above  wealth,  were  all  a<  q-<ired 
there  and  are  characteristics  of  which  we  had  a  right  to  be  proud,  and  to 
which  we  should  still  tenaciously  cling. 

Outside  our  own  limits  we  exercised  an  influence  for  good,  the  effect 
of  which  is  conspicuous  all  over  the  United  States.  While  New  England 
was  exploriner  communism  and  dissipating  personal  identity  and  respon- 
libility,  the  South  was  perfecting  the  ideal  of  the  individual.  When  the 
great  flood  of  the  Democracy  at  the  North  had  obliterated  all  venerable 
landmarks  and  levelled  all  society,  the  South  elevated  still  higher  her 
ancient  families  and  historic  names  to  point  a  contrast  which  should  abash 
the  levellers.  When  the  West  was  all  one  human  river,  rolling  ever 
over  new  soils  and  territories,  retaining  nothing,  preserving  nothing,  but 
pursuing  all  things,  untill  home  meant  a  camp  and  companionship  was 
an  encumbrance,  the  South  rested  tranquilly  within  her  ancient  borders, 
inhabited  still  her  ancestral  mansions,  and  cultivated  attachment  to  the 
soil,  repose  and  contentment. 

It  is  not  necr'ssary  to  weigh  the  value  of  the  contributions  to  the  now 
harmonising  national  character,  which  have  been  made  by  the  different 
sections  of  our  common  country.  Before  the  war  we  stood  too  widely 
opposed  in  all  the  relations  of  life  for  our  various  qualities  to  combine, 
but  DOW  the  quick  intellect  and  fertile  invention  of  the  East,  the  large 
aims  and  broad  culture  of  the  North,  the  restless  spirit  and  boundless 
amVition  of  the  West,  the  conservative  tenacity  and  intrepid  oouras:e  of 
the  South,  will  all  become  interwoven  and  form  one  substantial  and  well 
defined  American  national  character. 

Plaiited  at  the  opposite  poles  of  human  developement,  the  North  at  the 
"3cial  and  the  South  at  the  individual,  our  contrary  systems  strained  tbe 
^ytid  of  union  and  would  have  rent  it  asunder.  One-half  century  ago 
the  separation  would  have  been  inevitable,  but  the  characteristic  of  the 
present  age  is  unifieaiion,  We  have  seen  the  ancient  principalities  of 
Italy  brought  together  into  a  single  nationality ;  we  have  seen  the  great 


6  THE   BOtJTH.  [/«iy, 

Tuetonic  Fatherland  restored  to  unity  and  a  common  destiny;  weltetr 
from  afar  the  murmur  of  pan  Sclavonic  aspirations;  we  have  seen  the 
combined  power  of  Europe  invoked  to  ki  ep  -down  a  little  loD§rer  the 
unconquerable  yearnings  of  Grecian  consanguinity.  Our  late  opposiog 
sections,  too,  have  felt  the  hand  of  Providence  constraining  ns  to  dratr 
closer  together,  and  having  in  the  past  been  severally  spinning  the  veb 
and  the  woof,  we  are  to-day  uniting  them  in  the  firm  texture  of  a  commoo 
and  uniform  nationality. 

At  the  North  government  and  society  have  been  approximating  the 
Southern  type ;  individuality  has  been  emancipated  from  commoDismi 
the  rank  license  oi  thought  and  speech  has  been  restrained  within  the 
bounds  of  decorum,  propriety  has  become  more  influential  than  extnTi- 
agence,  and  distinction  is  no  longer  conferred  by  wealth  alone. 

At  the  South  similar  and  correlative  changes  have  tumei  the  current 
of  our  future  development  towards  the  Northern  ideal.  Here  authoritj 
has  been  deprived  of  its  perogilive,  personal  distinction  is  being  eclipsed 
by  representative  prominence,  expediency  shares  the  influence  «bidi 
used  to  belong  to  sentiment  alone,  reason  is  more  consulted  than  nsnge, 
inducement  is  used  rather  than  c^^mpulsion,  public  advantage  prevails 
over  private  pretension. 

All  the  elements  of  character  and  society  which  formerly  were  bent  in 
one  direction  are  now  straining  in  that  which  is  the  opposite,  and  yet 
the  one  as  much  as  the  other  will  bear  us  onward  to  prosperity.  Wbn 
a  ship,  which  seeks  her  port  against  an  adverse  wind  with  all  her  sails 
aslant,  has  won  the  utmost  limit  of  her  tack,  and  turning  sharp  athwart 
her  former  course  hauls  round  her  yards  and  spreads  her  canvas  for  a 
changed  career,  the  seamen's  science  tell  him  that  her  progress  is  still 
onward ;  and  so  may  we,  if  we  look  to  principles  and  not  to  appearances, 
be  assured  that  the  South  is  moving  still  onward  to  the  haven  of  her 
hopes — whether  her  prow  points  northwardly  or  southwardly. 

While  we  rejoice  in  tha  assurance  of  general  progress,  we  are,  never- 
theless, not  all  free  from  apprehension  as  to  the  future  of  individual  in* 
terests ;  we  look  back  upon  the  c«*ude  communism  of  the  North  an  wt 
remember  it  in  the  pist,  and  cling  still  more  f  mdly  to  the  protection  of 
our  ancient  safeguards.  This  is  natural,  but  it  is  not  alt<^ether  justified 
by  reason,  for  we  are  appro£ching  their  civilization  from  the  opposita 
side  to  that  at  which  tliey  entered  it ;  we  a^e  moving  to  meet  them,  wa 
are  not  following  in  their  steps.  When  once  these  currents  shall  hn^ 
mingled,  their  united  stream  cannot  fl  )w  upward  to  the  source  of  either. 

Apart  from  reason  and  interest,  many  of  us  are  still  held  back  by  a 
sentiment  which  all  must  respect,  but  to  which  none  ought  to  yield;  oor 
destiny  is  not  our  own  to  make  or  mar  as  we  like,  but  we  must  oonfarm 


1869]  THK   SOUTH.  7 

to  the  requirements  oi  our  times  and  move  to  the  cadence  of  the  crreat 
march  of  the  world.  The  feudal  barons  built  lofty  towers  to  shield  their 
tenants  and  their  herds  in  lawless  times,  but  now  those  empty  strong- 
holds stand  in  pictcturcsque  decay  upon  the  hilU  that  look  duwn  on  the 
peaceful  Rhine,  untenanted  by  man  or  beast,  serving  no  purpose  but  to 
adorn  the  landscape,  while  on  the  level  plains  below  a  thousand  humbler 
dwellings  give  the  shelter  and  security  of  home  to  a  more  numerous  and 
a  happier  people.  So  it  is  with  us.  Our  castled  crags  of  individualism 
hafe  become  obsolete.  He  who  still  abides  there  chooses  solitude  and 
proud  penury ;  those  who  descend  to  the  vineyards  below  will  find  liberty 
and  prospererity,  peace  and  companionship. 

Let  none  imagine  that  they  who  join  this  movement  are  doing  any 
wrong  to  their  ancestors  whose  efBgies  stand  in  the  niches  of  the  ancient 
walls.  The  institutions,  the  laws,  the  manners  of  the  past,  subserved 
their  purpose  and  fulfilled  their  destiny.  God  imposed  them,  God  has 
changed  them.  **  What  is  man  that  he  should  contend  with  the 
Almighty?''  In  the  past  we  and  those  who,  alas,  are  buried  with  it,  did 
our  duty  according  to  the  requirements  of  our  circumstances,  but  now 
other  duties  wait  upon  us,  and  different  circumstances  encompass  us. 
We  must  explore  our  new  times,  discover  the  rescources  and  take  pos- 
session of  the  opportunities  that  lie  before  us.  To  this  task  we  must  brng 
courage  and  patience,  minds  unfettered  by  prejudice,  and  eyes  undazzled 
by  authority ;  we  must  be  intrepid  enough  to  give  offence  to  ignorancey 
we  must  forget  to  defer  to  senilty,  we  must  learn  to  respect  energ>  and 
to  make' use  of  youth.  Let  the  true  and  the  wise  direct  our  counsels; 
let  the  brave  and  the  young  march  in  the  van ;  let  the  infirm  and  the 
timid  follow  safely  in  the  rear.  Thu.«  and  thus  only  can  we  advance, 
Ikus  and  thus  only  can  we  achieve. 

With  common  ends  in  view,  and  common  objects  to  attain,  our 
•Dargies  should  be  united,  and  a  common  sentiment  should  pervade  our 
minds.  It  i^  easy  for  men  to  be  combined  under  the  constraint  of 
autliority.  The  influence  of  position,  the  p?estige  of  fame,  place  a  sceptre 
iathe  hands  of  distinction  by  whith  unthinking  minds  are  swayed,  and 
indolent  dispositions  directed.  Such  union  constitutes  the  power  of 
unpire,  it  consolidates  energy,  it  represses  independence  of  thought  and 
iction,  it  is  strong  for  conquest  but  weak  in  d -fence,  it  may  win  renown 
hut  it  drives  off  prosperity.  This  is  not  the  combination  we  should  seek 
—our  new  condition  must  be  a  republic  or  it  will  be  nothing;  no  single 
tnind  can  solve  its  varied  problems,  no  single  character  can  prevail  against 
its  dfficulties.     The  solid  front  of  voluntary  combination,  the  irresistible 

iQOTtment  ot  intelligence  freely  massed  and  understanding  its  aims,  are 
the  odI  y  forces  that  can  avail  against  the  obstacles  in  the  way  of  that 


8  Tnc  BODTS.  [/v^, 

kind  of  progress  which  is  alone  worthy  of  our  eflbrts  and  onr  aspiratioDs. 
Look  abroad  upon  the  world  and  contrast  the  two  systems  of  combiaition 
— see  Asia  stagnating  and  Continental  Europe  heaving  under  the  powtf 
of  em  pi  re,  while  England  has  just  renewed  the  glory  of  her  history  in  tin 
last  great  triumph  she  has  given  to  public  opinion.  The  vast  globe  itself 
is  not  too  large  to  be  filled  with  the  reverberation  of  England's  mighty 
shout  as  the  statue  of  liberty  is  raised  above  the  ancient  seat  of  dfijast 
privilege  and  oppresive  perogitive. 

Governments  and  all  social  establishments  derive  their  sanction  tram 
their  usefulness ;  under  the  common  law  of  modem  civilization  each  may 
be  summoned  to  the  bar  of  the  public  opinion  of  the  world  and  put  upon 
the  vindication  of  its  existence.  We  who  have  learned  only  lately  what 
!t  is  to  have  a  government  over  us,  in  which,  for  the  moment,  ve  ou 
take'no  part,  should  feel  the  utmost  interest  in  the  sovereignty  of  the  oreat 
public  opinion  of  civilized  mnnkind.  It  is  the  only  tribunal  to  which  we 
ean  appeal,  the  only  power  strong  enough  to  protect  us.  The  disabilitiei 
under  which  the  South  once  stood  in  that  high  court  are  pow  reinoved; 
the  world  w  growing  more  just  to  our  past ;  and  is  warmly  drawn  to  n 
in  sympathy  lor  our  present  condition.  To-day  we  stand  among  the 
other  civilized  communities  of  the  world  wearing  the  court  dress  of  free 
labor  wbif'h  the  age  prescribes,  no  longer  obliged  to  plead  our  rights  to 
equality  and  respect. 

The  present  age  has  brought  all  mankind  very  near  together;  througk 
the  rapidity  of  communication  it  has  multiplied  the  recip'oc^l  ties  betweeo 
distant  communities,  and  has  enlarged  the  interests  which  are  in  onmmon 
among  widely  spreading  populations.  Humanity  has  become  the  pre- 
vailing passion  of  our  time ;  the  brotberhcod  of  man,  which  Christ 
preached  eighteen  hunrlred  years  afio,  is  only  now  bein^  practically 
accepted  by  the  world  which  crucified  Him.  But  now  the  world  is  heart* 
ily  in  earnest ;  Christian  c  harity  hM  become  more  universal  than  Christian 
faith,  and  labors  of  love  are  more  abundant  than  prayers. and  pennanoes. 
We  who  appreciate  the  past  history  of  the  Southerq  peopje  know  thai 
in  the  office  of  humanity  they  were  entitled  to  rank  with  auy  other  com- 
munity. We  know  that  the  Roman  discipline  of  the  plantation  was 
tempered  with  patriarchal  benevolence — that  subordination  went  hand  in 
hand  with  familiar  intimacy,  and  that  courtesy  was  shown  to  agei 
however  humble,  and  respect  accorded  to  merit,  even  Iq  a  slave.  The 
time  must  come  when  the  world  will  do  us  justice  in  these  things^andwe 
should  boldly  claim  it  of  the  world,  and  not  stultify  our  past  and  embitter 
our  future  by  suffering  the  freed  men  cf  the  Stmlk  to  be  persuadtsd  that 
they  h  ive  heretofore  suffered  wrongs  at  our  hands  or  are  likely  heresfier 
to  be  defrauded  of  their  rights  by  the  restoration  to  power  of  those  who 
are  entitled  to  control  the  State  Gs>vernments  at  the  South. 


1869]  THE   SOUTH.  0 

Tbe  obfigationa  of  honor  and  humanity  in  "vrhich  our  childhood  was 
educated  still  bind  us  to  the  African  race ;  they  have  still  the  claim  upon 
Ds  that  weaknesis  has  upon  strength,  that  ignorance  has  upon  Icnowledge 
that  want  has  upoix  wealth.  Their  new  relations  to  us  have  enlarged  the 
arear  of  our  common  interests.  Formerly  we  were  materiully  interested 
in  their  physical  and  moral  well-being  only,  now  we  have  a  still  more 
imprrtant  interest  in  their  intellectual  improvement.  However  prema- 
ture and  hazardous  we  may  rightly  think  the  enfranchisement  of  the 
negroes^  we  cannot  fail  to  see  that  it  is  irrevocable,  and  since  whatever 
ddpger  there  may  be,  comes  from  their  ignorance  and  not  trcm  their 
malevolence,  it  is  our  interest  as  well  as  our  duty  to  see  that  their 
ignorance  is  enlightened  by  education.  Education  is  not  dependt^ni  upon 
flcbools,  nor  does  it  necessarily  rest  upon  reading  or  writing — th^se  are 
best,  but  they  are  not  essential ;  f  pd,  meanwhile,  until  these  c^n  be 
a^orded,  let  us  lose  no  opportunity  of  advising  and  encouraging  these 
simple  people  in  the  difliculties  and  perplexities  of  i  heir  new  responsibil- 
ities. We  need  not  fear  that  the  African  race  will  ever  impose  its  inferior 
cohu'-e  upon  the  Caucasian — where  we  voluntarily  abandon  the  tleld,  they 
may  walk  in  and  occupy  it,  if  we  should  unwisely  exclude  them  from 
political  association  with  us,  and  drive  them  back  upon  themselves, they 
will  find  leaders  of  their  own  blood  or  of  ours,  and  will  make  their  influ- 
ence felt ;  but  if  we  resume  the  personal  intercourse  of  the  past  with  them, 
retain  their  affection  and  continue  to  deserve  their  confidence,  they  will 
not  be  slow  to  learn  that  what  is  our  good  is  theirs,  what  brings  prosperity 
to  us  brings  it  to  them,  and  that  as  we  are  able  to  think  better  than  they 
so  they  will  do  well  to  listen  to  our  counsel  and  support  our  measures. 
To^ainthdir  caofiJdnca  we  nee  1  n  )tsoil  our  hands  with  intrigue  nor  stoop 
tD  become  sycophants ;  they  have  been  studying  us  all  their  lives  and 
know  when  we  are  in  earnef.t;  our  kindly  and  sincere  purposes  towcrds 
them  will  be  most  appreciated  when  least  demonstrative,  and  our  own 
position  is  sufficiently  assured  to  make  us  absolutely  free  to  approach 
them  frankly,  unaflectedly  and  in  the  open  light  of  day. 

Such  itiicrcourse  is  not  repugnant  to  our  h  «biis,  it  is  not  inconsistent 
vilh  either  the  past  or  present  relations  of  the  two  races,  it  h  in  harmony 
with  the  great  law  of  Christian  charity  and  is  plainly  pointed  out  by  the 
most  practical  common  sense.  Once  established  it  can  never  be  again 
interrupted,  becAuse  its  benefits  will  be  too  much  appreciated  ever  to  be 
resigned.  Let  equal  justice  for  all  be  once  fairl}'  established,  let  mis- 
tni-t  and  suspicion  be  dispelled,  let  law  be  seated  above  policies,  and 
^th  and  justice  preferred  before  party,  and  the  future  of  the  South 
Wcomes  assured.  Then  may  we  widen  the  basis  of  our  prosperity 
enlarge  tha  area  of  our  enterprise,  multiply  the  emplo)  meuts,  the  inters 


10  THE  BOUTIf.  [/«/|r, 

ests  and  the  aspirationa  of  our  people.  Nature  has  set  no  limit  to 
our  <)e7eIopemont ;  the  gecial  soil  of  the  South  would  nourish  a  very 
much  larger  population  than  that  now  inhahiting  it ;  our  facilities  for 
manufacture  are  abundant,  our  mineral  resourced  are  almost  unt^ached 
our  harbors  and  rivers  are  sufficient  ft>r  all  the  commerce  of  the  AlUntic 

We  need  population  and  capital — the  one  will  come  if  we  open  our 
doors ;  the  other  will  follow  if  we  assure  it  of  protection.    The  thirteen 
Southern  States,  excluding  Maryland  and   Delaware,  with   an  area  of 
830,000  pqnare  miles,  contained  in  1860  11,500,000  inhabitants,  which  a 
less  than  fourteen  to  the  square  mile.    If  all  the  South  were  as  densely 
populated  an  S.)uth  Carolina,  it  would  contain  nearly  24,000,000  inhalo- 
tantfi ;  if  it  were  as  densely  peopled  as  New  England,  the  number  voold 
be   40,000,000   and   over.    That  the  population  of  the  South  did  not 
increase  in  the  same  ratio  as  that  of  other  parts  of  the  United  Stales  is 
notorious.    Our  northern  frontier,  although  washed  by  the  living  tide 
which  lias  flowed  even  up  to  the  base  of  the  Rdcky  Mountains,  wasaltnost 
a  barrier  to  immigration.     Between   1850  and  1860,  the  foreign  bora 
population  of  the   Northern  States   increased   2,550,000;  that   ot  the 
Soutiiern  States  only  325,000,  or  as  eight  to  one ;  yet  according  to  the 
census  of  1^60,  only  one  acre  ineveiy  seven  at  the  South  was  ''improved.^ 
while  at  the  North  one  in  every  ^\e  was  *^  improved."    In  Illinois,  fArios 
were  worth  on  an  average  twenty  dollars  an  acre;  in  Alabama,  nias 
dollars  an  acre ;  jet  undoubtedly  at  the  South  the  best  landa  only  is 
each  StHte  were  under  cultivation. 

It  is  trite  to  say  that  slavery  was  the  cause  of  this  difference,  yet  few 
who  are  ready  with  this  explanation  have  considered  in  what  way  iinfloi- 
gration  was  prevented  by  slavery.  It  lias  been  customary  to  ascribe  the 
hindrance  to  moral  causes,  to  speak  of  the  ^  instincts  of  freed^m,^  and 
other  supposed  sentimental  oljections;  but  such  explanations  are  nnpbil- 
osopliical  and  untrue.  Immigrants  had  certainly  been  taught,  by  the 
experience  of  those  who  had  tried  it,  that  the  Sauth  was  not  the  place  for 
them,  but  the  causes  that  excluded  them  were  physianl  and  not  moral; 
they  were  economic  and  not  sentimental ;  they  arose  not  from  any  oblo- 
quy attaching  to  labor  at  the  South,  but  from  the  fact  that  here  slavery 
mobilized  (he  Inhering  population  and  enahled  it  to  be  ma-^sed  together 
in  lar«;e  force,  to  be  rapidly  moved  from  place  to  place  and  to  occnpy  nev 
and  rich  soils  just  as  soon  as  these  became  accessible  to  iminigraQts. 
Under  ordinary  circumstances,  the  native  popu{ation  of  a  country  is  pe^ 
manently  seated  ;  attachment  to  the  soil  and  the  ties  of  family  retain  it 
until  its  density  becomes  excessive,  and  emigration  is  embraced  as  the 
alternative  to  hopeless  poverty.  If  such  conditions  hal  obUin*^  at  the 
South,  or  if  slavery  hv^re  had  not  been  contemporaneous  with  the  extra* 


I6G9]  THE  SOUTH'.  II 

ordinarj  facilities  for  traDsmigraiioD  which  the  present  century  has  intro- 
Luced,  the  original  slaye  States  would  probably  ha/e  contained  to-day 
the  eleven  milfions  Mbich  constitute  the  Southern  population,  and  Euro- 
pan  immigration  would  long  since  have  filled  up  all  the  rest  of  our  pres* 
ent  territory.  But  when  the  ^hole  intelligence  of  the  South  was  intent 
up^n  discovering  the  best  and  richest  soils,  when  its  wh(»]e  capital  was 
available  for  their  acqnisition  and  its  whole  Taboiing  population  ready  to 
occupy  thera,  the  immiirrant  found  liimself  at  a  hopeless  disadvantage. 
Without  capital  or  credit,  he  came  in  competition  with  the  master  of 
many  slaves,  and  found  the  best  soils  preoccupied  ;  being  alone  he  earned 
less  and  spent  more  in  living  than  the  slave,  for  combination  augments 
profluction  and  economizes  consumption. 

Tne  mobility  of  our  laboring  population  not  only  excluded  immi- 
grants from  onr  new  territory  and  prematurely  diminished  the  labor- 
in?  population  of  the  older  States,  but  in  these  the  slaves  became 
ma5ised  together  as  the  competition  of  the  West  came  to  be  more  and 
more  Mt.  Thus  profitable  plantins:  required  large  capital  and  small  pro- 
prietora  were  at  a  disadvantage.  Free  hbor  was  too  expensive  for  both 
li^'orer  and  employer,  hence  many  were  f.rced  to  emigrate;  and  so  exten- 
sive was  this  emigration  thit  the  census  of  1860  showed  that  of  the  white 
persons  then  living  in  the  United  StUes,  who  had  been  born  in  South 
Carolina,  277,000  only  remained  at  home,  while  193,000  were  perma- 
teiiilj  settled  in  other  S'ates.  North  C  irolina  retained  634  000  and  had 
p<irte.l  with  272,000.  Virginia  retained  1,000,000  and  had  pent  off 
100,000  of  her  native  white  population.  The  same  cau^e  prsictically  pro- 
Mbit&l  manufactures,  because  manufactures  even  m^re  than  aofriculture 
Jep^nd  upon  fixity  of  population.  Cheapness  of  living,  uniformity  and 
r'^g'jlaritv  in  the  supply  of  the  necessarie*  of  life,  are  condition-*  which 
ii^ust  be  in  existence  in  every  locality  b-jfora  manufacturing  becomes  pos- 
vble  there.  These  co*}dition3  cann  >t  oStain  where  popuhtion  is  shifting, 
3or  will  capital  consent  to  permanent  investment  where  values  fluctuate 
*it'»  the  movements  of  nomadic  Inbor. 

With  the  extinction  of  slavery,  the  South  presents  to  immigration  an 
eutir.  ly  different  aspect.  Our  native  population,  no  lonjrer  migralf.ry,  is 
i.rea(ly  beginning  to  find  the  country  too  large,  and  to  conj  *cture  how 
irami^rration  can  be  reconciled  with  conservatism.  Our  foreii^n-born  citi- 
zens, few  in  number,  but  intelligent  and  prosperous,  are  earnestly  and 
M-ively  engaged  in  inviting  their  countrymen  to  try  their  fortunes  here, 
'"ile  the  attituf'e  towards  iminiorration  assumed  by  our  newly  enfran- 
-bi^ed  classes,  reflects  infinite  credit  alike  upon  their  good  sen^e  and  their 
patroti«m,  and  entitles  them  to  participate  throughout  the  future  in  the 
^&etiu  of  a  broad  and  liberal  public  policy.    Let  us  everywhere  at  th« 


12  THE  SOUTH.  [Jvly, 

South  yield  to  this  iinpnlte  of  the  times.    The  great  popiiW  mind  li» 
fastened  upon   i  in  migration  as   the  foremost  measure  uf  the  day.   Ito 
ultimate  triumph  admits  of  no  qaestioo,  and  yet,  in  many  a  prirateeircl^ 
in  many  an  ancient  coterie,  doubts  and  apprehensions  are  Ftiii  entertxined. 
Many  an  en  pty  privilege — many  a  useles'S  custom — the  lumbering  rub- 
bish which  cullectH  in  old  communities — may  be  boroe  away  upon  tliis 
vigorous  fl  .>od.    Some  venerable  and  worthy  relics,  too,  may  be  lust ;  btl 
it  is  better  to  lose  the  relics  of  antiquity  than  to  mskti  oo  bequests  to 
posterity.     The  p.-ist  did  its  duty  and  is  dead  ;  but  we  live  upon  itsvorlcL 
Let  us  likew'se  do  our  duty,  that  our  childreu  may  in  turn  live  upon  om. 
Fling  wide  your  doors  to  immigration  and  compel  theoi  to  come  Iih-kA 
barbaiians,  tc>  be  beasts  of  burden,  but  intelligent,  thrifty,  libertj  lovtof 
men,  r.nd  healiliy,  industrious  and  viituous  women^     Welcome  si  Mlikf* 
whether  they  be  laborers  or  capitalists,  artisans  oir  merchants.    Etsblifik 
just  laws,  and   watch  j  ^alously  over  their  impartial  administration ;  sea 
that  labor  is  assured  of  its  earnings  \  that  property  is  made  sacred ;  tbtt 
wealth  is  efleciually  guarded  against  public  and  private  assault.    Let  tbe 
inviolability  of  the  person  and  the  sanctity  of  the  human  life  receive  ibe 
most  im)re«sive  sanction  of  our  courts;  let  the  public  peace  be  mail* 
tained  wiih  the  truncheon  of  the  policeman  and  not  the  bayonet  of  tbc 
soldier;  It-t  the  public  expenditures  be  directed  to  the  ends  of  good  gov* 
ernment,  and  not  to  the  nourishment  of  party. 

Lot  g  before  these  things  are  all  accomplished,  before  even  we  shall  allbe 
of  the  snme  mind  as, to  their  merit,  the  tide  of  immigration  will  be  opoB 
us.  Our  Foil  u  too  accessible  and  too  fertile,  and  our  climate  too  ples^tft 
and  he^dthiul  to  be  passed  by  for  the  distant  and  inhospitsble  region 
where  alone  public  lands  are  still  offered  to  the  immigrant.  Agrieullnn 
in  the  South  presents  now  greater  inducements  to  the  farmer  than  to  tb« 
planter,  science  and  mechanical  invention  are  more  effective  than  mn- 
cular  force,  varied  production  is  more  lucrative  than  the  culture  of  a  singlt 
staple.  Ttie  immigrant  will  find  his  intelligence  appreciated,  his  skill 
available,  his  tlirid  profitable ;  our  population  will  become  fiivil,  lirii^ 
will  be  clienper,  manufactures  will  be  possible,  trade  ^siill  become  loort 
active  and  more  ramified,  our  country  towns  will  grow,  our  cities  wi  1  bi 
multij  lied  an  1  will  become  more  populous.  Occupation  and  opportaoilj 
will  be  f  iund  for  all ;  native  talent  and  industry  will  hai*e  freer  scope  and 
larger  reward  than  ever  before,  while  new-comers  will  be  no  lonjerfwrw 
as  rivals,  but  welcomed  as  allies. 

The  dense  populations  of  the  Bastem  and  Middle  States  can  spare  asi 
large  number  of  immigrants,  whose  education,  enterprise  and  <*jiw 
will  be  of  vast  conpequenee  to  our  early  prosperity.  The  indacenJesls 
the  South  holds  out  to  this  class  are  sufficient  to  bring:  them  sitboat 


1869]  m  800TS.  19 

other  iDfitation,  but  the  people  of  the  Soaih  owe  H  to  them^elres  to  raeet 
the  fint-comers  in  a  mnnlj  spirit.  It  would  be  unwortliy  of  u^  to  t»ke  « 
mercenxrj  Tiew  of  such  a  question,  and  hence  I  saj  nothing  of  expe- 
diencv ;  hut  it  is  becoming  in  us,  because  it  is  manly  and  generous,  to 
(^iTe  a  frank  and  honest  welcome  to  those  who  are  persorally  worthy  of 
it,  nlietfaer  they  were  with  us  or  against  us  in  the  past.  Afer  the  Revo- 
lution, (he  fratricidal  passiou  wliich  had  arrajed  Whig  against  Tory,  was 
baDi>l)ed  from  the  heroic  breasts  of  the  victors  and  ▼anquisfied  alike;  and 
we  who  have  so  eonspicnous^y  imitated  the  courage  of  our  ancestors,  need 
Lot  be  ashamed  of  emulating  their  generosity.  The  advent  of  strannrers,  how- 
cTt-rvrelconre  they  nr.ay  be,  cannot  fail  to  have  the  eflFect  of  drawirig  closer 
to;;aiier  all  the  classes  of  our  native  and  old  adopted  population.  There  is 
ftomeihiog  in  old  associations  which  cannot  be  entirely  expelled  from  the 
i'Qraan  breajut,  and  we  shall  all  stand  more  firmly  together  when  in  the 
rre^i'tice  of  those  who  do  no:  share  in  our  memories  of  the  past.  With 
ranks  recruited,  energies  refreshed,  hopes  elated,  we  of  the  South  may 
tiiove  forward  to  the  occupation  of  our  future  with  the  assurance  which 
reason  gives  to  those  who  are  provided  with  the  means  to  command  suc- 
ctis.  In  that  fnture  the  South  will  find  a  destiny  which  to  us  who  must 
Uar  ihe  hardens  of  the  march,  is  not  yet  revealed  in  all  its  fullness— but 
ve  already  see  enough  to  incite  ns  to  advance  with  energy  and  intrepidity. 
Great  (ffbrt  and  great  sacrifice  will  be  demanded  of  us ;  the  sacrifice  must 
••e  inlividual,  but  the  effort  must  be  in  common.  Ho  who  is  consciont 
of  Wing  worthy  to  be  a  leader  must  be  content  to  take  a  place  in  the 
FArks;  he  who  is  ambitious  of  being  the  first  to  scale  the  wall  must  abide 
^J  the  wagons  if  need  be ;  he  who  loves  solitude  must  be  ready  to  rush 
do  the  tbic-<eat  of  the  fray.  Thus  will  personal  sacrifice  minister  to 
pQblic  advantage,  and  the  common  good  will  grow  by  common  edl»rt. 

Let  us  array  ourselves  in  panoply  of  enthusiasm — proof  against  the 
petty  darts  of  prejudice  and  affectation — and,  shoulder  to  shoulder,  bear 
(iowQ  th«s  barrriers  of  ignorance  and  obstruction ;  we  need  no  leaders,  but 
^e  will  find  representative  men ;  we  need  no  crowned  authority,  but  we 
^IWtand  under  the  free  banners  of  public  opinion — the  ruler  of  the 
*orlJ,tbe  arbiter  of  the  destinies  of  nations.  Public  opinion  is  the 
Mtflcbisidech  of  our  age,  reeeiving  tribute  from  all  mankind,  allowing 
empire  or  conducting  revolution,  annointed  of  God,  the  King  of  Peace* 
^^ubm  the  limits  of  its  wide  influenee  no  wrong  can  stand  uncondemned, 
DO  lie  can  remain  unrebuked,  but  truth,  however  homely,  is  made  honor- 
ibis— rights,  however  humble,  are  exalted  to  power.  There  the  human 
°^ind  is  free,  no  antique  osage  nor  obsolete  tradition  fetters  human  speech, 
for  pablio  opinion  can  live  only  in  the  atmosphere  of  liberty;  it  is  the 

■piriiof  truth,  the  interpreter  of  revelation— the  only  toxpqpuli  vox  dei. 


14  THB  BAXX  XX8S&TX8.  [/vif, 

When  tbought  and  speecb  are  not  free  from  prf judiee  and  faabion,  inm 
the  domiDalion  of  partj  or  the  dictHtion  of  caucus,  that  which  calls  ituif 
pub] io  opinion  is  a  usurper;  for  when  the  naiod  ia  not  fiee  tiuth  is 
imprisoned  in  her  own  citadel  and  her  standard  (till  floating  abofe  Um 
outer  wail,  becomes  the  emblem  of  auccessful  falaehood. 

To•estMbli^h  among  us  forever  the  true  and  the  right,  it  isonlj  neces- 
sary  that -everj  man  should  assert  absolute  independence  of  thought  twi 
speech,  and  accord  the  same  to  every  other  tnan.  This  is  no  easy  task;  it 
devolves  especially  upon  the  young  and  the  brave,  the  honest  hearted  sod 
the  humble  minded,  for  liberty  does  not  come  of  pride,  but  of  humilUj; 
not  of  strength,  but  ot  courage ;  not  of  experience,  but  of  aspiratioo. 
Upon  all  sides  there  is  work  to  be  done,  error  to  be  exposed,  trnib  toU 
illustrated.  In  our  courthouses  and  workshops,  upon  the  marts  of  com- 
merce, in  the  fields  of  agriculture,  wherever  men  are  called  to  labor  with 
the  arm  or  the  brain,  we  need  clear  heads,  strong  hearts,  steady  htods^ 
not  to  dictate  but  to  enlighten  ;  not  to  lead,  but  to  encourage;  not  tocos- 
trol,  but  to  point  out.  1  bus  and  thus  only  will  our  whole  populatioD 
advance  in  harmony  and  with  unity  of  purpose.  A  people  ao  moved  aod 
being  in  unison  with  the  great  prevailing  principle  of  their  times,  acquire 
a  momentum  in  the  direction  of  greatness  which  is  irresiatible.-    • 

The  greatness^of  a  people  is  not  measured  in '  modern  times  by  th« 
altitude  of  one  class  above  another,  but  by  the  common  eie^atioa  of  tba 
whole.  Rnise  high  your  highest,  but  leave  not  the  lowly  low ;  let  merit  be 
exalted,  let  intelligence  soar  among  the  clouds,  but  leave  no  human  being 
to  struggle  alone  with  the  degradation  that  drags  him  still  downvsrd, 
leave  none  in  the  darkness  of  ignorance,  deny  to  none  the  warmth  of 
sympathy,  and  above  all  heap  no  contumely  on  the  head  of  the  hamblesi 
aspirant  for  honor  and  position.  Thus  will  all  unite  in  building  api 
glorious  future,  where  all  may  dwell  in  happiness  and  honor,  and  wbere 
our  public  greatness  will  be  a  perpetual  T€  Dtum  ;  for  there  is  a  grsod 
harmony  in  the  mingling  emotions  of  a  free  community ;  when  the  solems 
ground-tone  of  earnet  masses,  the  vast  swell  of  pervading  enthusiasm,  the 
whole  diapason  of  human  aspirations,  pour  their  united  torrent  upward 
and  fill  the  ear  of  Hearen  with  man's  great  laborare  est  orarty  while  par« 
and  clear  as  the  treble  of  a  silver  bugle  the  dominating  idea  of  the  epoch 
gives  articulate  language  to  the  tumultuous  concord. 


""^^■^^  ■  ■  I-  -  ri    in. 


THE  BANK  RE8ERTES. 

We  publish  this  month  tables  showing  the  reserves  of  the  Nitional 
Banks,  and  the  aggregate  returns  of  the  banks  in  each  State  of  the  Uoioo 
as  reported  on  the  l7ih  April  under  ihe  new  law  requiring  five  reports  a 


1369]  ,      IHS  BAXTK  RK8BRTS0.  15 

Tear  under  the  direction  of  the  Comptroller  of  the  Oanrency.  There  are 
two  points  in  regard  to  these  tables  wLich  are  worthy  of  attontion* 
First,  thej  are  made  up  for  some  past  daj  designated  bj  Mr.  Hulburd, 
and  the  abuse  of  preparing  for  their  statements  is  at  an  end.  To  give 
«acb  statistics  their  full  value,  they  must  offer  faithful  and  impartial 
records  of  the  average  condition  of  the  banks.  Now  it  is  notorious  that 
.icJer  t^  e  old  system  this  was  not  so.  The  banks  everywhere  were 
Unijited  to  prepare  for  their  quarterly  reports.  They  were  anxious  to  offer 
a  strong  statement,  and  they  knew  beforehand  on  what  day  it  wouid  be 
made  up.  Their  credit  with  the  department  and  their  position  before 
the  public  depended  in  part  upon  their  success  in  showing  a  strong  posi- 
tion in  these  reports,  which  are  not  only  sent  to  Washington  but  are 
publishel  by  law  in  the  newspapers.  Hence  the  very  mischievous  prac- 
tice p[re«  up  of  calling  in  loans,  of  gathering  greenbacks  into  their 
•xffer?,  and  of  making  other  adroit  disposition  of  their  assets  so  as  to 
show  a  lar|i;e  proportion  of  reserves  to  liabilities.  "Now  the  thing  that  is 
wanted  is  to  make  the  banks  always  strong  in  reserve.  The  new  law  does 
tliis,  at  least,  in  part.  For  it  requires  the  statement  to  be  made  up 
whenever  the  Comptroyer  may  order  it.  The  banks  are  therefore  liable 
at  any  time  to  be  called  upon,  and  they  cannot  strengthen  themselves  so 
»  to  appear  in  their  report  stronger  than  they  are  on  the  average. 
Moreover,  the  report  is  always  to  be  made  up  for  some  past  day,  as  was 
f)rnQerly  done  under  our  New  York  State  banking  system.  It  is  obvious 
tUt  as  the  banks  do  not  know  beforehand  for  which  day  or  even  in  what 
tcoDth  their  statements  will  be  required,  they  are  kept  under  a  constant 
pressure  to  hold  themselves  in  a  sound,  strong  position  at  all  times.  At 
^j  rate,  we  shall  be  likely  now  to  know  more  precisely  what  is  the 
r^ai  condition  of  the  banks,  and  the  sworn  figures  of  the  reports  will 
^^ve  more  nearly  than  heretofore  the  actual  averages.  The  new  value 
tbu$  conferred  on  our  bank  statistics  it  is  impossible  to  overestimate. 

The  second  point  of  interest  in  these  tables  is  in  regard  to  the  adequacy 
of  the  reserve.  In  view  of  the  monetary  spasms  of  the  past  six  months 
^ns  question  is  assuming  more  and  more  prominence.  Had  the  bank 
reserves  been  more  ample,  the  stringency  of  March  and  April  would  per- 
t>»ps  not  have  occurrec';  certainly  it  would  have  been  less  severe,  and 
I^s  prolonged.  The  law  rt  quires  that  all  banks  situated  outside  of  the 
f'Qaocial  centres  shall  protect  their  liabilities  by  a  reserve  of  15  per  cent* 
^^e  institutions  to  which  this  rule  applies  are  1.397.  Their  liabilities 
approach  394  millions,  so  that  the  reserve  required  is  59  millions.  The 
^^nks  actually  hold  82  millions,  so  that  they  would  seem  to  be  amply 
^'^'iBed.  If  these  82  millions  were  greenback)  the  situation  would  be 
^'rotig  iadeed.^But  ^he  reserve  is  really  composed  of  no  more   than  37 


10      ON  TBI  TRADE  WIIR  TBS  OOLOBVD  R40n  OV  ATUOA.  [Mf^ 

millions  of  greenbacks  in  hand,  the  remainder  being  chiefly  on  depont 
in  the  banks  o(  the  redeeming  cities,  except  about  6  irtillions  io  gold  and 
8  per  cent  cerlificates.  Still  the  reserves  are  considerablj  in  eioeai  of 
what  tlie  Uw  demand^  both  in  these  countirj  banks  and  inthoMofth* 
fifteen  chief  cities  which  form  the  second  group  of  bat.king  centra. 
These  banks,  exclusive  of  those  of  New  York,  are  164  in  number,  hamg 
liabiliiies  amounting  to  213  millions.  Their  reserves  bj  lavr  nio5tbe25 
per  cent,  or  63  tiiillions.  The  reserves  aetuaPj  held  amount  to  61  mil* 
lions,  or  29  per  cenL  Of  this  sum  26  millions  are  legal  tenders,  15  mil- 
lions are  3  per  cent  certificates,  and  18^  millions  represent  the  balsocei 
in  the  redeeming  cities. 

Turninir  now  to  our  66  New  York  banks,  we  find  their  liaHilitics  tn 
187  millions  which  require  bj  law  26  per  cent  reserve.  The  t^^r^ 
gate  legal  re6er\'e  Bhonld  thus  be  $46,760,121.  The  an»ount  of  sdul 
reserve  is  i^63,801,6*22,  or  nearly  29  per  cent.  Of  this  reserve  it  is  im 
important  to  note  that  the  legal  tenders  are  no  more  than  $17,229,007. 
This  weakness  in  greenbacks  is  partly  compensated  lor  by  15  millioDi 
of  Clearing  House  certificates  and  nearly  16  millions  more  of  S  percent 
temporary  loan  certificates.  The  excess  of  interest  bearing  reserves  sod 
the  d«^ficiency  of  greenbacks  is  at  present  one  of  the  weakest  poiats  in  oar 
Kationnl  banking  system. 

Ttie  banks  must  always  be  weak  and  exposed  to  danger  so  longas  tbsr 
allow  their  greenback  reserves  to  run  down  below  a  certain  safe  M* 
That  they  have  sunk  below  that  level  of  late  the  feveii^h  state  of  oar 
money  market  sufficiently  proves.  Several  months  since  the  MAOAZifi 
oalied  attention  to  the  danger  of  allowing  the  banks  to  hJd  reserv^-s  betf- 
ing  interest  The  evil  we  predicted  has  arrived.  If  new  legiMatioo  ii 
needed  to  coirect  it,  that  legislation  should  look  to  the  imposing  of  r>t^^ 
tions  on  the  interest  bearing  reserve  and  to  an  iiHsrease  in  the  amount  of 
greenbacks  to  be  held  by  the  banks  as  guarantee  of  their  aolvency. 


^*^*0^0*^t0^0*0^0^0^^^^^^ 


ON  THE  TRADE  WITH  THE  COLORED  RICES  OF  AFUCA.* 

BT  ARCHIBALD   HAMILTOtr,   X6Q. 

I  propose  to  take  a  general  survey  of  the  commerce  between  the  colored 
or  Ethiopic  rAces  of  Africa  and  the  civilized  world ;  and  then  briefij  to 
consi<ler  the  means  by  which  that  commerce,  hitherto  confined  to  lk0 
coast,  can  be  extended  to  the  interior. 

The  Ethiopic  races  inhabit  that  vast  country  south  of  the  great  desert, 

•  R«id  before  the  Btstlatksl  Soeletr,  Febmij  18,  ises. 


1869]       OV  TBS  TR^DB  WITH  TUS  COLOBSD  &A0£8   OV  AWRlOkm  it 

wUcfa  m«?  with  tolerable  accuracy  be  defined  by  a  liae  drawn  from  the 
Bifer  Sone^jfal  to  Cape  Qtiardafui  as  its  northern  boundary ;  while  its 
southetn  limit  is  t)ie  Ciipe  Coluny.  It  thus  comprises  about  foriy-five 
degrees  of  Iaiilud<>,  and  is  bounded,  east  and  west^  by  the  I  idian  and 
AtlanUc  oceans ;  its  area  being  equal  to  one-fifih  or  one-sixth  part  of  the 
babitiible  glol>e. 

ApHrt  from  any  question  of  inherent  inferiority  of  race,  it  is  obvious 
that  the  country  occupied  by  the  Ethiopians  is  not  calculated  to  eni(ender 
civilizatiuo.  lb  liei^  in  too  compact  a  masSf  unbroken  by  bays  or  inlets ; 
oor  do  the  rivers  afford  either  defensive  frontiers  or  the  means  of  commu- 
oication  and  iran?^port  equal  to  those  which  divide  and  traverse  the  other 
di?iuons  i#f  tue  globe.  The  great  desert  cuts  it  off  from  the  ancient  civil* 
iiizstion  of  wbich  the  Mediti-rranean  was  the  centre,  while  the  intercourse 
subsequently  established  by  the  Arabs  is  limited  and  impeded  by  the 
tsme  cause.  The  rivers  are  all  subject  to  a  dry  season,  which  reuders 
them  during  a  piirt  of  the  year  unfit  for  inland  navigation ;  and  they  are 
all  more  or  less  interrupted  by  rapids  and  cataracts — though  it  is  true 
«qasl  ob»Ucles  have  not  hindered  the  St.  Lawrence  from  becoming  the 
great  means  in  the  settlement  of  Canada. 

There  are  two  circumstances  which  give  reason  to  hope,  not  only  th^t 
our  commerce  with  the  races  dwelling  on  the  coast  will  be  rapidly 
enlarged,  but  also  be  extended  inwards.  I  mean  the  almost  total  stO(i- 
page  of  the  C  iristian  or  transatlantic  slave  trade,  and  the  rapid  strides 
which  have  of  late  been  made  in  the  exploration  of  the  continent. 

In  1854  L'vin  rstone  penetrated  from  the  Cape  Colony  to  Loanda,  and 
tbeoce  he  erosAed  to  Quillimane,  tracing  the  course  of  the  Zimbesi  on  his 
vay.  Subsequently  he  explored  Lake  Nyanza,  and  it  has  recently  been  a 
public  consuilition  to  learn  that  he  is  now  on  his  way  home,  most  likely 
down  the  Nil«',  to  complete  our  knowledge  of  L  ike  Tanganyika,  first  dis- 
covered by  Burton.  Barth  has  supplemented  the  labors  of  Denham  and 
Clspperton  in  Central  Africa,  between  the  Niger  and  Lake  Tchad,  tiie 
most  hopeful  and  important  district  of  all.  Speke  and  Grant  alvancin^ 
northwards  from  Zanzibar,  have  discovered  Lake  Victoria  Nyanza ;  while 
leaker,  coming  in  the  opposite  direction  from  E^ypt,  has  terminated  the 
IjDg  my^itery  as  to  the  source  of  the  Nile,  having  beheld  it  issuing  from 
the  great  lake  Albert  Nyanza.  Brilliaot  as  have  b'en  the  results  of  these 
explorations,  and  others  of  lesser  note^  the  field  of  adventure  is  far  from 
«xhsQsled ;  much  remains  for  discovery  before  the  map  of  Africa  can  be 
^'Ittd  up,  and  the  future  highways  of  commerce  be  traced  out.  Hippily^ 
bowever,  the  spirit  and  enterprise  of  our  countrymen  are  more  likely  to 
be  stimulated  than  diminished  by  the  exploits  of  the  celebrated  travelers 
lo  whom  I  have  alluded. 

% 


J 


18  OV  THX  TRADE  WITH  TBI  OOIOBKD  HA0I8  OF  AVUCA.      [/«^, 

There  w  one  subject  which  occapiea  a  large  space  in  every  book  of 
African  travel — the  slave  trade.  I  do  not  intend  to  enter  into  any  d^'tnk 
of  the  horrors  attending  that  traffic ;  bnt  as  human  beings  have  bf  three 
centuries  been  one  of  the  chief  exports  from  Africa,  this  eubject  is  insepi- 
rably  mixed  up  with  that  of  legitimate  commerce ;  becaose  of  the  ansitkj 
which  the  slave  trade  everywhere  creates,  the  ceaseless  kidnapping^-sUve 
bunts — ^nd  wars  undertaken  expressly  to  obtain  captives^  to  the  d«st^l^ 
tion  of  settled  industry.  It  is  even  the  principal  cause  of  ib^  difficulties 
experienced  in  exploring  the  country ;  and  has,  moreover,  brutalized  tlie 
natives  on  the  coast  far  below  the  condition  of  the  people  in  the  interior* 

Within  the  last  few  years  success  seems  at  length  to  have  crowned  osr 
efforts  to  suppress  the  transatlantic  slave  trade,  but  the  Mahoroedan  tn^ 
fie  contiDues  unchecked,  or  nesrly  so.  Owing  to  their  oontraband  natvie, 
it  is  impossible  to  obtain  accurate  information  of  either  at  any  period. 
The  matter  was  caiefully  investigated  by  Sir  Fowell  Boxtoo,  who  csli' 
mated  the  number  of  slaves  exported  at  170,000  per  annum  so  reeniUy 
as  1839-40,  on  data  which  have  never  been  impugned.  To  this  mottbe 
added  a  loss  of  life  from  slaughter  in  wars  undertaken  for  the  capture  of 
slaves  and  subsequent  mortality,  so  that  the  figures  are  thua  atated  bj 
Buxton : 

Delivered.  Lo^iofLife.     TotU. 

TranBathntic  slave  trade 1  ar »,000       tS  ,000       400,000 

liabomedan SO.OOO         60,000        100,    0 

Total 170,000        SiO.tOO        500,010 

It  would  appear,  bowever,  from  more  recent  information^  that  the  losi 
of  life  from  the  Mahomedan  trade  is  considerably  under  stated  by  Baxtoo. 

Such  was  the  most  moderate  estimate  that  could  be  formed  of  tbe 
transatlantic  slave  trade  in  1840,  and  there  is  reason  to  believe  it  w» 
stimulated  for  several  years  by  the  alteration  of  onr  sugar  duties  is 
1846.  The  first  effectual  blow  was  in  1853  and  1854,  when  Brail 
abolished  tbe  trade  and  importations  ceased  ;  so  that  Cuba  thenceforward 
bas  continued  the  only  importing  country.  A  return  of  the  slaves 
exported  from  the  west  coast  between  the  years  1848  and  1804,  will  be 
found  in  Appendix,  Table  I ;  since  the  lattar  year  the  trade  has  almost 
ceased,  a  stray  cargo  now  and  then  being  all  that  has  reached  Cubs. 
The  authorities  there  have  of  late  been  in  earnest  in  preventing  tmpotia- 
tions,  and  it  is  gratifying  to  observe  that  public  feeling  in  Cubs  is 
becoming  adverse  to  their  continuance. 

I  shall  now  briefly  explain  the  progress  which  has  been  made  in  tab- 
stituting  legitimate  commerce  for  the  slave  trade  along  the  wfst  coast; 
and  may  remark  that  this  has  nowhere  been  accomplished  withont  coid 


1869]       ON  TBS  TRABl  WTTB  TH8  COLORED  RA0K8   OF   AFRICA.  19 

pulstno  of  some  kind  id  the  first  instance ;  and  there  is  too  much  reason 
to  fear  that,  in  case  of  a  renewed  demand,  the  trade  would  once  rooie 
break  oat  where  our  vigilance  relaxed.  No  export  of  slaves  has  taken 
place  for  many  years  from  our  settlements  on  the  west  coast,  viz.,  the 
Gambia,  Sierra  Leone  and  Cape  Coast  Castle ;  nor  from  the  adjacent  U  Z 
ritoriHt  under  the  influence  of  those  settlements;  nor  from  the  republic 
ofLibfria,  nor  the  Dutch  settlements  on  the  Gold  Coast;  so  that  if  we 
except  the  River  Nunez,  the  coast  between  Gambia  and  Dahomey,  say  for 
1,500  mites,  has  for  many  years  been  free  from  the  slave  trade.  Relying 
on  this  immunity,  it  was  resolved  in  February,  1864,  to  withdraw  the 
squadron  entirely  from  this  part  of  the  coast ;  the  consequence  was,  that 
ia  September  following,  a  cargo  of  slaves  was  shipped  from  the  River 
XuDez  (situated  between  the  Gambia  and  Sierra  Leone),  but  with  which 
there  has  been  little  intercourse  from  either  settlement. 

It  13  worthy  of  note  that  for  many  years  great  pains  have  been  taken 
by  the  missionary  societies  with  the  education  of  the  liberated  Africans  at 
Sierra  Leone,  and  the  children  born  in  the  eoilony.  During  six  years 
endiog  1864,  between  seventy  and  eighty  schools  have  been  maintained, 
at  a  cost  of  £5,000  per  annum,  which  have  been  attended  by  67,000 
scholars,  or  an  average  of  9,500  per  annum.  An  important  class  of 
educnted  blacks  has  thus  grown  up,  who,  together  with  the  Liberian 
blacks,  are  actively  engaged  in  trade  all  down  the  coast;  and  ever 
'ince  the  mail  steamers  were  established,  in  1852,  they  have  availed 
themselves  freely  of  the  facilities  thereby  offered,  to  trade  at  the  various 
places  on  the  coast  at  which  the  steamers  calL  As  many  as  150  per 
month  of  these  native  traders  pass  in  the  mail  steamers  between  the 
stations.  Besides  Sierra  Leone,  they  are  numerous  atthe  Gambia,  Cape 
Coast,  Accra  and  Fernando  Po,  while  they  swarm  at  Lagos.  They  are 
everywhere  useful  as  middlemen,  and  have,  in  fact,  driven  all  white  traders 
on  a  small  scale  out  of  the  field  at  Sierra  Leone ;  and  the  more  extensive 
European  merchants  employ  them  as  agents  and  clerks  in  their  operations 
on  the  neighboring  rivers.  Of  late  it  has  become  the  ambition  of  these 
traders  to  order  goods  direct  from  England,  paying  for  them  in  produce. 
I  shall  presently  point  out  how  the  educated  blacks  are  capable  of  playing 
>  most  ufteful  part  in  the  opening  trade  with  Central  Africa. 

Already,  as  often  as  the  educated  native  traders  have  had  opportunities, 
they  have  shown  great  eagerness  to  carry  small  adventures  up  the  Niger, 
&Qd  have  even  endeavored  to  form  among  themselves  a  company,  with  a 
capital  of  £25,000,  for  steam  navigation  in  that  river. 

Whilst  on  this  subject,  I  may  allude  to  the  progress  made  by  the  repub- 
'>c  of  Liberia,  which  occupies  a  coast  hue  of  about  600  miles. 

Tue  first  settlement  of  emancipated  slaves  from   the  United  States 


iO  ox  TBI  TRADE  WTTB  THX  COLOBSD   IU0X8  OF  AfRICf.     [JmI% 

WM  in  1820,  find  in  1847  it  wra  declared  a  fre^  n^pnblie.    It  nowoon- 
XmM  Mbout  80,000  civilized  inhabitAntA, about  1.5,000  of  wliom,  with  their 
d'toendnnts,  are  from  A'tierica.     From   300,000  to  400,000  aborigiiMi 
KKide  v^ithio   the  territory  of  Liberia,  and   are  brought  more  or  \m 
4idirectlj  under  the   influence  of  her  institutions.    There  nre  about  fifty 
•hurchts  in  tbe  republic,  represent! n^r  fife  different  denoininntioo.«.    The 
educated  blacks  in  Liberia  and  Sierra  Leone  are  iotenselj  reli^ioiv,  aui 
the  ?Mrioua  sects,  Episcopalians  Weslejnns,  BaptistA,  Independenu.  4^ 
are  represented  anions  them  j'ist  as  in  Eigland  and  the  Uidte<)  S  ntea^ 
Differins:  from  Sierra  Leone,  Liberia  hns  boen  governed  sim^e  1847  bj 
Mat  kn  alone.    Their  conslitution  resemblee  that  of  the  United  9utes  nxki 
if  their  proceedings  are  at  times  calcnl  ited  to  raise  a  smile  as  a  pinvij 
upon  their  model,  it  is  impossible  to  deny  the  good  Kense,  frui^ality  and 
8*icce»s  i^biob   have    attended    them    so   far.     In    1881    the    revenue 
was  1^140,660,  against  an  eipenditure  of  $142,831.    Ttie  Pr&<ideo.al 
m  'ssage  for  1806  alludes,  with  just  pride,  to  the  foundation  of  tbe  Lbe- 
rian  college,  and  lays  down  a  plan  fir  national  education.    Tuere  chd  be 
BO  doubt  that  this  well  ordered  and  well  governed  community  will  pUj 
a  |8:reat  part  in  the  civilisation  of  Africa,    Tiie  present  state  of  matters  io 
Amerira  will  lead  to  a  considerable  aecesMon  of  strength,  600  eroignnti 
having  been  dispatched  in  the  course  of  1866,  and  942  in  1667.    Th 
A'nerican  Colonization  Society,  which  founded  the  settlement  io  1^^20, 
now  regularly  employ  a  vessel  in   the  conveyance  of  emigrants.    Tbe 
a^tilers  have  already  been  able  to  repel  all  attacks  from  the  native^,  hvA 
as  they  gain  strength,  wiU  become  aggressive  and  extend  t'leir  induens^ 
inwards.    For  the  year  lt64  the  imports  amounted  to  $162,930,  th« 
exports  to  $172,608. 

I  come  next  to  the  British  settlement  of  Lagos,  which  was  for  maaj 
years  the  headquarters  of  the  sUve  trade  in  the  Bight  of  B^nin.  Situated 
at  the  entrance  to  an  extensive  li^oon,  affording  boat  navigation  ea>t«.vi 
as  far  as  the  River  Benin,  and  westward  to  the  notorious  kingdora  c4 
Dahomey,  it  possesses  unequalled  facilities  for  the  slave  tr  <de,  eoabii?^ 
tbe  slavers  to  dodge  our  cruisers.  In  185h  a  treaty  was  forced  oo  tL« 
chi*  fs  and  king,  and  a  consulate  was  established,  which  eontinued  usuI 
1861 ;  but  those  measures  being  inadeq^tate,  we  took  possession  of  tbe 
island  of  Lagos  and  of  one  or  two  points  on  the  adjacent  coast,  witid)» 
with  a  couple  of  gunboats  on  the  lagoons,  has  answered  our  parpo» 
effectually. 

A  considerable  trade  in  palm  oil  had  grown  np  under  Uie  Treaty  of 
1851.  Since  we  took  possession  the  trade  has  been  seriously  intenvptei 
by  a  war  b^'tween  Abeokuto  and  ibadan,  caused  by  the  latter  des'ring  s 
direct  road  to  the  white  man  at  Lagos,  and  so  avoid  paying  toU  to  tbe 


1869]       OSr  THS  nUDV  with  TBE  O   LORSB  racks  of  ArRIOA.  21 

Abe<ikut<tn8.    The  ground   lost  will   soon,  however,  be  reoovereJ,  and 
Li£r(j9is  rapidly  becoming  the  iieat  of  a  flourifiinng  irade. 

S'oppini^  the  rlave  trade  at  L'gos  had  the  effect  of  directitig  the  current 
thence  to  Whxdhh,  a  port  in  Dihomej  ;  but  of  late,  owing  to  the  cessa* 
tioD  of  the  traffic,  the  king  of  that  country  Iia^  turned  his  attehtion  to 
legitimNte  commerce.  Some  f^mail  trHde  bad  indeed  been  carrie<i  on 
cliiefly  by  the  French,  concurrently  with  the  slave  traffic;  and  in  1864  a 
Liverpool  company  opened  trade  Ht  Whydah,  the  king  granting  thetn  his 
bara(H>oD,  or  slave  depot,  as  a  st  ire  for  goods.  Two  other  E  iglish  houses 
have  ^nt  agents  there,  and  a  healthy  trade  is  rapidly  in  coarsie  of  devel> 
opment.  I  may  mention,  however,  that  so  recently  ai^  May  or  June,  1867, 
the  king  tendered  slaves  in  payment  of  a  debt  which  he  had  contracted. 
I  avi  unable  to  give  particulars  of  this  trade  which  as  yet  is  in  its  infan  *y. 

I  come  next  to  the  rivers,  B  nin,  BrHS^  and  Bonny  (months  of  the 
Niger),  also  Old  and  New  CaUbar  and  Cnraerroons,  generally  cla.«8ed 
together  as  the  *^oil  river!*.'*  These  were  at  one  time  the  noted  liMUtits  of 
ilawr?.  In  the  years  1838  to  1840,  treaties  were  forced  upon  the  nntivs 
k^D;rs  and  chiefs,  by  which  ti.ey  engapred  to  discontinue  the  slave  trade. 
Ciarts  of  equity  were  afterwards  established  for  the  regulation  of  le:^iti- 
mate  commerce,  consistinor  of  the  captains,  supercargoes,  and  agents  of 
English  houses,  together  with  the  ki.tga  and  chiefs  of  the  place.  They 
take  cognizance  of  all  disputes  between  the  Engliih  and  the  natives.  A 
consul  visits  the  rivers  at  intervals,  and  the  system  hns  been  found  to  work 
successfully,  with  only  an  occasional  nsort  to  the  squadron  ;  in  fac^  the 
mere  presence  of  a  man-of-war  has  of  late  sufficed  to  restore  order.  I 
sm  enabled  to  show,  from  j)rivate  6tati>t!cs,  the  progress  of  the  trade 
between  the  oil  rivers  and  Liverpool.  The  average  durinq^  the  first  four- 
teen years  was  17,932  tons;  and  during  the  la«>t  fourteen  yearn  24,734 
tons;  hat  during  the  first  fourteen  years  the  trade  was  chiefly  with  L'V- 
erp<K)t;  Bristil  participated,  and  of  late  years  the  Clyde  has  also  shared. 
TLere  hnve  been  great  fluctnations  in  the  imports,  which  have  been  ii.flu- 
enced  hy  the  prices  at  home,  leading  occasiouHlly  to  suspension  of  trade 
vben  the  natives  were  unwilling  to  subiuit  to  reJuced  prices;  likewise  to 
lad  sespons. 

The  next  point  on  the  const  where  there  is  a  considerable  trade,  is  the 
Gaboon  River,  which  is  under  the  control  of  the  French  Governm«-nt,  and 
Jias  hitherto  been  thrown  open  to  ail  nHttons.  There  are  five  E  ii;li»h 
two  or  three  French,  one  German,  rnd  two  Dutch  houses  engaged  in  the 
trs'le  Ttie  police  regulations  are  good,  and  traders  well  prutecteJ  ;  until 
recently  the  expense  whs  borne  by  the  Imperial  Government,  but  within 
t^c  last  twelve  months  they  have  enforced  a  charge  for  a  trading  lioenos 
ani  it  u  expected  will  levy  a  duty  of  4  per  cent  on  imports  and  exports 


22  ON  mS  TBADB  WITH  THB  OOLOBBD  BACIS  OF  Am04»      \/9^t 

« 

80  as  to  assist  in  defraying  the  expenses  of  goveromeot.  At  our  edlomei 
a  revenue  is  collected  by  similar  iiup^rt  duller.  I  have  Uren  unaUls  to 
cbuin  returns  of  the  imports  and  exports,  but  these  will  enter  iuu>  Ihs 
general  tables  of  trade  with  the  west  coast. 

Further  »outh  we  came  to  the  River  Congo,  notorioas  as  the  lust  ssit 
of  the  slave  trade  on  the  west  coaat.  Within  the  last  five  or  six  jean,ss 
many  a«  twentj-three  slavers  have  been  counted  at  Ponta  de  Lena  st  ons 
time.  Legitimate  trade  made  no  progress,  until  at  last  an  effeoiual  cbsek 
was  given  to  the  slnve  traffic  by  the  adoption  of  a  very  obvi^a'i  course— 
our  Government  entered  into  a  contract  to  ooal  the  preventive  ornisersoa 
the  spot,  instead  of  resorting  to  Fernando  Po  or  Ascension  for  a  snpplji 
leaving  the  coast  and  rivers  for  the  time  anguarded. 

To  prove  how  effective  has  been  the  blockade  since  thia  arranvenMnt 
was  adopted,  I  may  state  that  within  the  last  twelve  months  700  slares 
were  sent  down  for  shipment,  and  two  slavers  appeared  on  the  co<st  to 
embark  them — one  was  captured  and  the  other  left  the  ooa^t  in  de<p«r. 
When  my  informant  l«ft  the  Congo,  the  slaves  were  still  on  hand,  sud 
have  doubtless  either  been  set  free  or  put  to  some  useful  ocoup  ttion  ero 
this.  Cut  off  from  the  slave  trade,  the  natives  are  now  eagerly  en^sged 
in  raising  produce,  while  the  Portuguese  slave  dealers  are  rendering  good 
service  «s  middlemen  in  the  up-country  trade.  One  Dutch,  one  Aneri* 
can,  three  French,  and  three  British  houses  have  established  ihemselvesio 
the  Congo,  with  branches  along  the  neighboring  coast  as  far  as  the  Porta- 
gue|e  Settlements  at  Angola,  and  an  active  trade  is  now  carried  oa  in 
palm  oil  and  kernels,  ivory,  coffee,  India  rubber,  copper  ore,  gum  copsl, 
and  ground  nuts.  This  trade  has  probably  increased  t^nfoKI  wiihia  sx 
years,  and  the  exports  for  1867  have  been  ettimated  at  £250.000. 

Besides  the  points  on  the  west  coast  to  which  I  have  alia  Jed,  th^^re  h 
an  active  trade  carried  on  by  tiie  French  nt  their  settlements  at  Seoegsl 
and  Goree,  as  well  as  elsewhere;  by  the  Dutch  at  their  setUeinents  oa 
the  Gold  Coast;  as  also  by  the  Hanse  Towns  and  Americans  at  various 
points ;  while  the  Portuguese  settlements  of  Angola  and  Bengnela  are 
little  developed,  though  there  are  valuable  copper  miuea  witiiin  their  ter- 
ritory. 

The  trade  carried  on  by  these  countries  figure  in  the  general  tables  of 
African  commerce.  But  to  show  the  extent  of  the  west  coast  trale  there 
are  tables  in  the  Appendix  (table  II)  showing  the  imp«>rt4  aud  ex!>orts  to 
the  United  Kingdom  for  ten  years  ending  1866  h%  also  the  imports  from 
thence  of  ivory  and  bullion.  The  growth  of  the  trade  with  the  Uiafesd 
Kingdom  will,  however,  be  best  shown  by  the  table  of  palm  oil  i  nporled 
since  the  year  1700 — also  in  the  Appendix,  table  III. 

As  regards  the  goods  shipped  to  the  west  ooast,  I  may  state  that  the 


1869]      ON  THK  TSADB  WITH  TBS  OOLORBD  BACE8  07   ATBIQA,  S3 

demand  hns  for  the  lust  tec  yenn  or  so,  been  constantly  for  an  improved 
qaHlity.  The  consumption  of  British  manufactures  seems  limited  only 
hj  tba  po8<ibiIity  of  supplying  produce  or  Value  in  exchange ;  thus  at  the 
time  when  return?  were  unhappily  obtained  chiefly  in  slaves,  the  exports 
from  the  United  Kingdom  were,  in— 


\^i £1,160,000 

180« ),fOO,000 

1807  (»Uv«  trad«  abolished)..    1  ,>  80,000 


1808 £800,000 

1811 400.000 

1827 166,000 


Ibis  was  the  lowest  point  to  which  they  dwiudled.     About  1830  the  palm 
oil  trade  became  important,  so  that  the  exports  of  British    manufactures 

rose  in — 


18S01O.... je'}60,roO 

l'-^& 800.000 

ISiO .     4  0000 

1^45 680,  UO 


1850 £640.000 

1866 1,100.000 

1860 I,  00,000 

18)6 1,100,000 


As  it  has  been  often  stated  that  considerable  supplies  of  cotton  may  be 
itrivtd  from  Central  and  Wesiern  Africa,  I  subjoin  the  quautities  im- 
ported, viz. : 


IS  6 CwU,  808 

*567 |,02<l 

i»« 2.»16 

1^&< I.SI'i 

^«0 «,0«9 

186i I,88» 


1862  Cwta.    8,488 

i8rtH»..., 

1861*. •••. •••...       •.•• 

1866 V26 

i8o6 .,••     Mlt 


It  is  true  the  cotton  plant  is  indigenous,  and  the  soil  and  climate  over 
90  enurmous  district  are  capable  of  supplj^in;/  more  than  we  even  now 
coDsuiiie  ;  still  the  needful  E  iropean  superintendence  for  a  large  produo- 
tioD  cannut  be  supplied.  The  means  of  transport  for  so  bulky  an  article 
<io  n<it  exi$t ;  neither  could  the  capital  re'^uired  for  implements,  gins, 
presM-8,  4fec.,  be  prudently  invested  unless  under  British  rule ;  to  that 
iD&ny  3 ears  must  elapse,  in  my  opinion,  and  many  changes  must  occur, 
before  we  can  look  fur  any  quantity  of  African  cotton,  such  as  would  be 
sensibly  fell  in  our  markets. 

As  regards  the  trade  with  the  natives  bordering  on  the  Cape  and  Natal 
coloiii^-g,  as  well  as  the  Dutch  republics  beyond  the  frontiers,  it  is  iaipoe- 
sible  to  arrive  at  exact  duta.  Speaking  generally,  we  may  assume  t)  at  the 
greater  part  of  the  ivory  and  ostrich  feathers  from  the  colonies  is  obtained 
from  the  natives,  or  through  their  agency  and  assistance,  as  well  as  a 
qoamitj  of  hides  and  skins.  Commerce  is  gradually  extending  north- 
*ar<is  for  examjile,  it  is  not  many  jears  since  Livingstone  discovered 
I^ake  Ngaiii],  and  now  it  is  within  the    ordinary  range  of  the   traders  in 


*  ImporUtlon  cease  \  owini  to  Abeokatan  war  ab  jve  mentioned. 


$4  05  THS  TRADS  WITH  TBC   COLOIISD  11ACS8   OV  AFRICJL      [/«ff, 

quest  of  ivory  and  ostrich  feathers.  TheCnffres  and  Fiii^n«j  settled  witk- 
in  the  eolonj  are  mflking  marked  progre.^ ;  they  now  pnrticipHte  in  the 
carrviog  trade  of  the  colony,  conveying  nier<*h^ndi96  tn  well  ^pptMated 
waggons  from  the  coast  to  the  up-country,  and  bHogmg  down  the  retnroi 
of  produce.  Their  consumption  of  European  goo<ift  is  increa^insf,  and  tlwj 
DOW  require  thereto  be  of  better  qunlity ;  a  remaik  wbicb  applies  lib- 
wise  to  the  natives  beyond  the  limits  of  the  colony. 

As  a  ron^h  i;uess  merely,  I  am  inclined  to  set  down  the  trade  betweea 
the  colonists  and  the  natives  beyond  the  bordtrs^  as  fallows : 

Ivorj.  on<>.hs1f  ^sports  from  C«p€  and  Natsl ..••  £10^ 

Ostrich  feattere, three-fourths  ditto 47JI0O 

HiVsaod  »1(ins....  10.*<^ 

CAitle,  sbeepe.  goAti,  and  SDodries • VefiQO 

Tctdl £ri7^ 

The  eastern  cost  of  Africa,  northward  of  the  colony  of  Natal  was  the 
feat  of  a  flourishing  commerce  of  great  antiquity,  carried  on  by  the 
Arabs,  i%ho  occupied  the  coast  nine  hundred  years  ago,  and  founded 
numerous  cities  as  far  South  as  Sofala ;  some  of  which  rem-^in  to  thisdaj, 
while  the  ruins  of  others  have  lately  been  ^discovered.  They  traded  to 
India,  Persia,  Arabia  and  E^^pt.  It  was  at  Mlinda  that  Vhsco  de  GaoiSf 
in  the  year  1498,  procured  a  pilot  to  conduct  him  to  India. 

The  Poitnguese  speedily  possessed  tbemselvesof  the  principal  po«itioBi 
on  the  coast  for  a  range  of  about  2,400  miles.  Their  power  did  not,  bov- 
ever,  extend  far  inland,  though  they  made  efforts  to  advance  intotiM 
country, chiefly  with  a  view  to  reach  the  gold  mines,  the  pro-luce  of  vhidi 
was  brought  down  the  Zambesi  to  S^ifala  (supposed  by  some  to  have  bees 
the  Ophir  of  the  Bihh).  But  instead  of  the  abundance  they  expected, 
they  found  the  gold,  as  in  other  parU  of  Africa,  had  t»  be  laboriouslj 
watched  fiom  the  extraneous  substances  in  i^hich  it  is  depttf^ited. 

As  the  power  of  the  Portuguese  nation  declined,  the  Arabs  re-established 
their  independence  over  a  portion  of  their  former  po%essi<»nA,  ao  that  the 
jcoast  f*om  Delagoa  Bay  to  Cape  Delgado,  1,300  miles,  is  all  thai  remsins 
to  the  Portuguese,  while  the  coabt  from  Delgado  to  Mi^adoxq  is  eUtmed 
by  the  Saltan  of  Z  mzibar,  a  range  of  1,100  miles.  Though  in  f»ct  ths 
sovereiiTQty  thus  clMimed  by  the  Portuguese  and  Arabs  is  merely  nominal, 
except  here  and  there  where  forts  are  maintained.  The  nMaves'beyosd 
the  range  of  these  of  these  forts  pay  no  taxes,  and  are  in  fact  a  source  of 
terror  to  the  Portuouese,  who  subsidize  them  at  limes,  and  have  difllcoltf 
in  holding  their  ground  ;  indeed,  Mr.  Young  has  just  brotisfht  word  that 
they  have  been  driven  out  of  8ena  and  all  places  south  of  the  Zambesi 
by  the  Zulus. 


1860]     on  Ten  tham  wits  vbb  oolorso  raou  of  avrioa.  9S 

The  bliglit  of  fflafery  bas  fallen  upon  their  settlements,  and  of  the 
prosperity  for  uhich  tbey  were  at  one  time  famous,  fcnrce  a  shadow 
remains.  Their  trade  consists  in  gold,  ivory,  and  slaves.  The  slave  trade, 
tbouuh  or»ntraij  to  Portuguese  law,  has  un^eHsingly  been  carried  on  with 
the  knowlt-dge  and  connivance  of  tiie  officials ;  hapjiily  it  has  been  cur- 
tailed hy  I  he  stoppsge  of  the  trHnsailantic  traffic;  but  the  Portuguese  still 
supply  the  Aralie  with  slaves  for  the  eastern  markets.  1'he  onl\  healthy 
symp'oms  \a  a  trade  which  seems  likely  to  spring  tip  between  our  colony 
of  N  >tal  Mn< I  lite  Portvgnesse  settlements  at  Ddagoa  Bay,  Qii'limane, 
ssd  MoSiQibiqu*^.  It  is  to  be  regretted  the  sovereignty  over  1)«^00  luiles 
of  coast  should  be  in  the  hands  of  a  jealous  and  indolent  people  like  the 
Portu<^ese,  who  by  their  eommerc'tal  restrictions  have,  in  fact,  left  their 
own  su> j -cts  Hnd  the  nttive  chiefs  httle  el^e  to  engage  in  thtn  the  slave 
trade,  while  i\wy  play  this  dog-in-the-manger  policy  on  the  coast  of  a 
ferlilfl  country,  iHissessed  of  6ne  haibors  and  rivers  more  or  Uss  nrtviurnble. 
The  Ziui^ie-i,  the  chief  river  of  all,  Livingstone  has  proved  to  be  naviga- 
ble i'T  700  or  800  miles  inland,  interrupted,  it  k  true,  by  cataracts,  but 
but  still  t>ffeiin&;  facilities  for  commeree;  while  its  tributary,  the  Shire* 
gives  sc^-ess  from  the  sea  to  the  ^r«at  Lake  N\assa,  with  the  exof'ption  cf 
about  35  miles  of  rapids  not  navtg  ible  as  hss  been  recently  proved  by 
Mr.  Y<»ai  g  of  tbt*  Livingstone  search  expedition* 

Li  the  returns  of  trade  between  Po.tugal  Hnd  her  African  settlements, 
vo  di^inctton  is  made  between  tbos**  on  the  west  and  easti'oasts ;  indeed 
tbey  sre  kept  so  imperfectly  that  I  am  compelled  to  estimate  them  aa 
felloes,  viz.: 

Imports  to  Afri-a     ♦.. £800,000 

TuLynrxM  from  Afi ics. .  • 4w9,0j0 

In  marked  contrast  with  the  Portuguese,  the  Sultan  of  Zinzibar  encour- 
ages Eiiropenn  commen  e,  both  on  the  island  so  ntimed  and  on  tht;  coast 
over  which  he  i'l aims  sovereignty,  thoui^h  his  influence  doe>8  not  extend 
over  the  heath(*n  tiibes  beyond  the  range  of  his  forts.  The  rH|»iJ  develop- 
ment of  the  Z  inzihHr  trade,  is  a  strikin:/  proof  of  the  resources  of  Eastern 
Africa,  spd  cot  firms  the  accounts  which  have  reached  us  of  its  ancient 
pro^peiiiy.  The  isUnd  U  48  uiles  long  by  16  to  30  broad.  In  1  Hi  it 
contain4d  Ml)out  250,000  inhabitnnts,  and  is  supposed  in  the  three  follow- 
ing} earn,  to  have  iicreHsed  to  300  000,  consisting  of  AraU,  half  castes, 
and  hitlers  from  India,  together  with  negro  slaves  from  the  mainland^ 
tbe  latter  c  rry  on  the  cultivation,  %\\\\e  all  trade  is  in  the  hands  of  the 
IIiiicl.H)s.  In  1634  the  trade  of  Zmzibar  was  reported  to  consitit  of  a  few 
ini[>orU  from  Aril-is,  snd  expoiU  of  gum  and  ivory  to  Bombay.  In  the 
year  euding  April,  1866,  it  was  vibited  by  sixty-six  square-rigged  vessels  of 


fid  OV  TBI  TRAinil  WITH  THS  COUMKD  BAOU  Ot  ATBIOA.      [/«^9 

ftll  flag«,  amouDting  to  21,000  tons,  besides  of  lodian,  Perfian,  and  Anb 
eraft  8,000  tons;  aod,  takmg  an  average  of  five  years  eoding  1865  the 

Importi  were £349^62 

Exports  wtr« 877,801 

Of  these  tlie  largest  proportion  is  with  Rritiah  India;   the  GrermanssBd 
Americans  come  next ;  the  British  trade  is  however  on  Uie  incrsHse* 

These  results  'will  show  what  might  be  done  on  the  coast  wiih  sfAtlsd 
government;  but  the  island  of  ZAncibar  is  an  Arab  set'l«*m«nt,aiidl 
have  to  do  oolj  with  what  portion  of  Ihe  trade  whioh  is  derived  froa 
the  E'hiopic  races  on  the  mainland.  It  is  the  thief  mail  for  ivor?,  and 
Baker  mentions  that  when  he  reached  the  neighborhood  of  the  Njsnst 
Lakep,  he  found  the  natives  wearing  cluth  and  possessed  of  oilitrr  proodi 
which  had  been  paasttd  from  Zmzibar.  From  the  last  conaular  report,! 
find  the  imports  from  the  mainland  to  have  been,  on  an  average  of  fivi 
years,  equal  to  £225,000,  exclusive  of  slaves. 

A  citnsiderable  trade  has  been  carried  on  between  Zansibar  and  Lagoi 
in  cowries,  of  which  there  is  here  a  tinhery. 

The  Ztnzibar  dominions  are  the  only  part  of  Africa  where  the  slais 
trade  is  legal.  There  are  recognized  imporrations  icto  the  ialand  dariof 
a  certain  portion  of  the  year,  under  a  system  of  )*afises;  duiiog  the  Isst 
five  years  the  average  number  entered  at  the  oustoms  has  been  14,000 
per  annum,  on  which  a  duty  of  92  per  head  is  levied.  A  lults  are  wortk 
£2  to  £7,  bo}8  and  girls  25s  to  6O.4.  The  slaves  in  Zuisi bar  ars  well 
treated,  bu',  contrary  to  ez|ierience  in  America,  they  do  not  incresse. 
General  Ri^by  states  that  only  5  out  of  every  100  female  slaves  besr 
children  ;  this  he  ascribes  not  to  dispariiy  of  the  sexes,  but  to  lh«ir  novil- 
lingness  to  reai  children,  wliicb  will  be  sold  as  soon  as  they  erow  into 
sufficient  value.  It  is  uncertain  bow  many  of  ihe  slaves  annually  imported 
are  exported  fiom  the  island  to  ihe  eastern  markets,  but  it  is  thought  ouif 
less  than  0,000.  The  reguUlions  sliuded  to  are  indeed  hut  a  mere  cloak 
for  a  traffic  carried  on  by  the  AraUs  from  places  on  the  coa^t  as  ht 
south  asMczimbique,  to  pons  in  the  R»d  Sea  and  Per»i.in  Gulf.  These 
jointly  with  what  are  brought  from  the  Wuite  Nile  «*ountry  and  across 
the  Great  Desert  from  Central  Africa,  furuiah  slaves  for  Arabia,  Syris, 
and  Asia  Minor,  as  far  as  Constat  tinople;  while  tl  10^  carried  t)  the 
Persian  Gulf  supply  Mesopotamia,  PerMa,  and  the  countries  et^^THrd  as 
far  as  the  Indus.  The  unhajipy  negroes  are  to  be  found  aprinkled  orer 
the  country,  from  the  coufines  ot  Rusia  to  Cashmere,  and  from  thd  lodos 
to  the  Mediterranean. 

The  great  difficulty  we  have  experienced  in  oar  efforts  to  pat  down  tbs 
Mahomedan  slave  trade,  is  due  to  its  sanction  by  thair  religttto.    Slarery 


18C9]        CjrTBX  TBAPB  WHB  IBS   COI.OFKD  BACEB  OV  AVRIOA.  2? 

hsB  exiVtiK]  aitioDg  e8.«teni  races  from  the  remotest  ages,  and  is  in  some 
re«)>ec(s  necessary  to  their  society  as  constituted.  They  do  not,  therefore, 
DDderstund  our  views;  hence  the  chiefs  and  rulers,  even  though  willing, 
might  be  unable  to  suppress  it;  but  in  fact  thej  not  unfreqnently  derive 
much  profit  from  the  traffic.  We  have  hitherto  been  reslrnined  from 
putting  it  down  with  a  high  hHnd,.becHaT)e  our  policy  in  the  East  is  con- 
sidered involved,  lest  we  should  excite  the  hostility  of  the  countries 
coDCProed.  But  our  proceedings  on  the  east  coast,  as  yet,  Rre  calculated 
to  irrifate,  rather  than  seriously  interrupt  the  traffic  It  has  been 
&Qg<iested  til  at  the  coast  should  be  scoured  by  steam  gunboats,  capable  of 
foilowing  the  dhowa  into  slioal  water,  whfch  would  be  less  ezpen^^ive  than 
tbe  cruis<T.s  at  present  on  the  station  ;  while  some  of  these  latter  could 
be  employed  with  advantage  on  the  Red  Sea,  so  as  to  intercept  tbe  traffic 
brouglit  from  the  White  Nile  as  il  crosses  to  Arabra.  The  Egyptian 
Government  has.  been  indueed  to  place  a  steamer  on  the  White  Nile  to 
check  the  evil ;  and  I  trust  before  we  have  done  with  Abyssinia,  that 
loinething  may  bb  arranged  to  hinder  ihe  transit  through  that  country, 

I  come  now  to  the  caravan  trade  by  camels  from  Morocco  and  Tripoli! 
leross  the  desert,  which  the  Arabs  and  Moors  carry  on  with  Central 
Alrica.  We  know  but  little  of  that  between  M>rocco  and  Tirobuctooy 
cxc»'pt  that  the  r»^ turns  are  chiefly  in  slaves.  From  Tiipoli  the  caravans 
pass  by  way  of  Moursuk  to.Bornou  and  Saudan — Kuka  and  Kano  being 
tbe  chitif  centres  from  whence  branch  caravans  pass  to  other  places.  We 
ire  indebted  t4.»  Denliaro  and  Clapperton,  Richardson  and  B  irlh,  for  our 
knowledge  of  this  commerce;  and  fuller  details  are  expected  in  a  work  by 
Dr.  R  )hlf,  now  in  the  press  in  Gt* rroany.  The  cost  of  transport  is  about 
^30  per  ton,  independently  of  duties  and  exactions  on  every  pretexts 
eic*  pt  where  the  caravan  is  strong  enough  to  bear  down  opposition ;  it 
takes  fuur  monlhft  to  cross  tlie  desert,  so  vhat  the  cost  of  goods  al  Tripoli 
is  quadrupled  by  the  time  they  reach  Euka  and  Ktuo.  The  returns  are 
tlfrefore  chiefly  in  slaves,  with  the  addition  of  a  small  auiount  in 
Tilnables,  such  as  gold,  ivory,  ostrich  ^kins,  and  a  little  aniimony. 
Ordinary  articles  of  produce  would  not  bear  the  cost  of  transport. 

The  return  caravans  frequently  include  over  6,000  slives;  hrge 
nnmb«-r!*  of  whom  die  of  hunger,  tiiirfit,  and  fever  on  the  way — th«  routes 
beinv  actually  marked  by  the  whitening  bones  of  the  wretched  beings 
%ho  have  sunk  under  the  fatigues  of  the  journey.  A  v^hule  caravan  has 
been  known  to  perish  for  want  of  water. 

At  MoQtz  k  the  slaves  are  sold,  at  from  £20  to  £25  per  head 
vid  (wm  thence  smuggled  into  Trip  li,  Egypt,  and  the  E  if^t.  It  is  in 
Vain  thnt  ue  have  treaties  with  the  Turkish  and  Egyptian  G  >vernmenta 
-Hbe  official,  connive  at  the  traffic;    we  have  no  means  of  enforcing  the 


28  OH  THB  TRADB   WITH   THB   COLORED   RAOSB   OF  AFBICl.      [/vly) 

treaties  in  the  cnse  of  (his  inland  ^lave  trade,  iuch  as  we  bsve  at  sea;  but 
it  bap{)fn«  we  have  a  more  efiVctual  means  of  extinguishing  it  by  tbi 
^  readier  Acce»<t  (o  Ct-ntral  ArHca  affonled  by  the  River  Nig**r,  so  tlut  wi 
eaii  iinder>ell  Ity  thht  chanDel  tliuse  engaged  in  the  cara\ an  tr<<de,  tDd 
brin^  ddwn  returns  in  produce  such  as  can  be  raised  in  abun  lance.  As 
An  exMin[>ie  of  how  this  will  woik,  I  may  mention  th.u  a  gentleroafi 
having  ascended  tiie  Ki^er  in  a  steamer  direct  from  Eni^land,  in  a  point 
within  a  fi*-»  da}s  journey  of  B<da,  saw  a  caravan  arrive  there  vitii 
£urope»n  goo<ls  from  Tri|K)li,  part  of  the  goods  being  loaf  sugar  made  it 
Whiteclia|>^l!  There  can,  in  lact,  be  no  doubt  that  as  soon  as«tb<^  Niger 
trade  hns  been  developed,  the  caravan  trade  fiom  Tripoli  an<1  Muroceo 
will  be  4txtin«:uitihed.  and  witii  it  will  end  the  necessity  of  cartjicg  ^sck 
returns  in  the  hhape  of  human  heings. 

liavit  g  thus  made  the  circuit  ot  Ethiopa,  I  summarise  its  commerei 
with  the  civilized  world  in  the  following  table:  Table  IV. 

It  is  to  b'  observed,  th^t  with  the  exception  of  ivorv  and  s:oMf  do 
legitimate  conimerce  has  yet  been  established  with  C-inral  Atrica. 
JEuropcans  have  in  fact  as  yet  traded  with  the  naiivtrs  d^^elling  on  the 
mere  cu'skirts  of  this  vast  territorv,  and  thou<;h  the  trade  on  Uie  wes^ 
coast  has  reached  respectable  dinienhior.a,  it  is  (till  capable  of  Uisg 
largely  increased;  and  as  I  have  shown,  is  rapidly  increasing.  That  of 
the  east  coaH  is  well  nigh  ney;lected. 

iThe  Arabs  are  the  only  people  who  have  established  a  rep^ular  ortmmQ- 
nication  uith  Central  Atrii-a;  by  introducing  the  caiii<:I  from  Arabia, 
they  weie  enabled  to  opt-n  paths  through  the  desert,  which  l.ad  pre- 
viously defied  all  effoits.  Bv  successive  migrations  they  became  in  time 
the  ruling  ]  ower,  introducing  the  Mahomedan  religion  and  Arab  civi<izft- 
tion,  the  traces  of  which  latter  can  be  discovered  tot. is  Aay.  lliej 
founded  kiniidoms,  ample  accounts  of  which  have  b*en  transmitted  to  os 
by  the  Arab  wri»er»  of  the  twelfth,  thirteenth,  and  fourte^nt'i  centuries 5 
while  modern  travelers  have  ascertained  that  these  countries  in  C  ntrsl 
Africa  are  now  inhabited  by  a  variety  of  races,  some  of  them  red  or 
chocolate  color,  nnd  diff^iincr  in  shades  of  black.  The  black  tnbes  again 
range  fiom  tho^e  with  high  features,  ajproaching  the  C*ucassijin,  lt»  the 
comn.on  Ne<;ro.  Of  all  these  rac<  s  the  Felatahs  are  the  most  warlike, 
and  they  are  supposed  to  have  emerged  from  the  condition  of  a  mere 
pastoral  iribe,  and  to  have  founded  their  powerful  empire  uf  Sukstn, 
within  a  century  from  this  time.  They  are  still  encroaching  oo  tbeir 
neighbors. 

With  the  exception  of  some  few  nomadic  tribes,  the  people  for  security 
live  chiefl)  in  Urge  towns  foriified  by  mud  walls,  ^uffiviently  stmn:^  to 
resist  ordinary  attacks,  and  round  these  towns  cluster  agricultural  viila^* 


1869]      on  Tns  TBii^g  with  thb  colobbd  raokb  or  avkica.  29 

The  sfuice  within  the  walls  is  usunily  extennive,  the  housea  are  inter- 
spersed  with  cultiTated  fiMds,  and  thid  rendt-re  it  difficult  to  estiniHte  the 
popu  ation  with  accuracv ;  but  it  is  certain  that  many  of  the  town» 
contain  as  many  as  50,000  to  60,000  inhabitants,  though  some  travelers 
rate  th^m  as  hii^h  as  100,000. 

In  all  the  towns  maikets  are  heKl  every  two  or  three  days;  iarjge 
numbers  from  the  neighboring  villHges  attend  them;  and  although  their 
dealings  would  appear  to  us  trifling,  t>tiil  there  is  every h  here  shown  » 
•troni^  love  of  trade. 

Coiton  and  indigo  are  cultivated,  and  in  many  towns  there  is  a  con- 
siderHllti  manufacture  of  cotton  cloth,  noted  fur  its  excellent  qu-ility  and 
the  dnrability  of  its  d}e,  which  latter  equph,  if  it  does  not  exce?,  in  quality 
anything  done  in  Manchester.  Besides  cloth,  there  are  manufacturers  of 
leather,  as  saddlery,  hags,  c**shions,  &c.  The  art  of  smelting  is  under- 
stood, and  in  some  places  gold  chains  and  ornaments  are  m>inufa>'lure(l 
with  creditable  tiste  and  skill.  The  trade  of  the  biaclsmith  U  every- 
where plied.  At  the  Exhibition  of  1S5I,  the  late  Mr.  Robert  JamiesoQ 
exhibited  some  specimens  of  native  copper  ware,  t'nned  inside,  rudely 
done  no  doubt,  but  proving  they  possess  that  as  well  as  several  other 
aseful  arts. 

Salt  is  a  prime  article  of  commerce;  it  is  brought  by  caravan  from 
certain  pcints  in  the  great  desert,  and  likewiise  from  the  coast. 

Some  of  the  canoes  on  the  I^ig'^r,  approaching  the  sea,  are  large  enough 
to  convey  upwards  of  one  hundred  people ;  and  Park  saw  one  as  hi^h  up 
the  river  as  Sgo,  carry  four  horses  and  six  or  eight  men. 

The  medium  of  exchange  differs  ia  various  places.  In  Kano  it  is 
eowries ;  in  Bornou  cloth  ;  in  L^ggnn  iron,  where  indeed,  in  D>nham^s 
time,  a  kind  of  iron  coinage  was  in  use«  and  Baikie  saw  the  same  thing  in 
1854,  when  he  ascended  the  Tchadda.  In  general,  in  all  important 
transactions,  the  value  is  expressed  in  the  price  of  a  slave. 

The  religim  of  the  dominant  races  is  Mahomedan.  Tlie  only  written 
character  is  the  Arabic,  and  the  Koran  is,  of  course,  read  in  all  mosques 
— though  sometimes  the  reader  does  not  understand  a  word,  and  the 
hearers  very  seldom,  if  ever. 

Disputes  ^re  adjusted  by  palaver,  when  professed  advocates,  who  can 
expound  the  Koran,  conduct  the  cau^e  of  the  litigants,  oft-n  with  much 
ingenuity.  These  palavers  are,  indeed,  everywhere  a  maikeJ  feature  of 
the  native  races,  as  they  are,  one  and  all,  noted  for  loquacity. 

The  proportion  of  slaves  to  free  population  differs  in  various  countries- 
At  Kano,  Gl»pperton  says  the  free  population  was  in  the  proportion  of 
one  to  thirty  slaves;  other  travelers  estimate  in  other  places  the  propor- 
lk>n  of  slaves  to  Tary  ft  om  two-thirds  to  ibur  fiTths^    There  is,  however^  a 


$0  09  TnE  niADV  WITH  TBS  OOLOSKD  BAOIS  OF  JLFRICl.      [/tftjf, 

wide  difference  between  tbe  dornesticy  or  lK>rn  slaves,  who  f>nn  tlie  bolk, 
and  slaves  wliO  have  been  parclia^ed  or  captured.  Tbe  domestic  dsTsi 
have  certain  well  established  n^ts,  only  give  np  a  portion  of  tbeir  titne 
to  their  masters,  and  caonot  be  sold  out  of  their  districts  except  for  crime, 
adjudged  in  due  form  bj  palaver.  In  short,  it  is  rather  a  mild  form  of 
serfdom  than  slavery. 

All  these  facts  bespeak  a  certain  security  of  property  and  industry  pro- 
tected, as  well  as  the  elements  of  civilization.  There  are,  however,  no 
traces  of  antiquity — no  works  of  art — and  it  is  wonderful  that  so  modi 
of  the  Arab  civ.lization  should  have  survived,  amid  the  constant  slave 
hunts  and  wars  which  for  three  oentvries  have  prevailed  to  supply  tbe 
demand  for  slaves  for  America.  That  demand  has  only  now  cea^eJ,  eo 
that  slaves  are  no  longer  sent  down  from  these  countries  to  the  cent, 
and  they  are,  therefore,  ripe  for  legitimate  commerce.  To  this  rich  and 
populous  region  there  is  ready  access  by  the  river  ^iger,  next  in  eizd  to 
the  Nile,  but  destined  to  play  a  still  more  important  part  in  the  drilia* 
tion  of  Africa,  affording  as  it  does,  together  with  its  equally  imporunt 
branch,  the  Tchadda,  a  noble  highway  to  the  very  heart  of  the  cootioent* 
The  history,  too,  of  the  Niger  is  not  a  little  strange.  The  sources  o 
other  great  rivers  have  frequently  been  the  object  of  curiosity,  but  tbe 
Niger  alone  has  been  distinguished  by  the  interest  attaching  to  its  jinc- 
tion  with  the  sea.  Its  existence  was  successively  known  to  the  E^pti&ns, 
Greeks,  Romans  and  Arabs,  the  latter,  indeed,  having  settled  on  its  hsoki 
at  Timbuctoo.  An  enormous  body  of  water  was  known  to  flow  eastward 
towards  the  great  desert ;  it  was  supposed  to  be  lost  in  the  saoda  of 
Sahara,  or  to  be  a  branch  of  tbe  Nile ;  and  other  theories  innumerable 
were  from  Ume  to  time  put  forth,  until  1830,  when  the  problem  was 
solved  by  Richard  Lander,  who,  extending  the  previous  achieveroeoti  of 
Park,  followed  its  lower  coarse  to  the  sea,  and  laid  open  the  long^coveted 
channel  for  commerce  with  Central  Africa. 

The  first  attempt  iy  render  LanJer*s  disc3very  available,  was  by  acoii- 
panj  formed  in  Liverpool,  which  sent  out  an  expedition  consisting  of  two 
steamers,  accompanied  by  the  late  BIr.  McGregor  Liird,  who  pabliihei 
an  interesting  account  of  its  proceedings  and  misfortunes.  Halving  esterdl 
the  river  too  late  in  the  secson,  the  steamers  grounded  at  the  coaflian:d 
of  the  riv«fr  Tchadda.  Out  of  forty-ei^ht  men  nine  only  survived,  and  tbe 
capital  of  the  company  was  lost 

Mr.  Robert  Jamii^^),a  merchant  of  Glasgow,  neit  fitted  out  astesne  r 
in  1889.    His  op  <  rn  nth  were  ootnrnercially  unfavorable ;  but  thej  a  1  lei 
greatly  to  our  knowledge  of  the  Niger  and  its  delta,  besides  expbria^  the 
fivers  Biuin  aad  Old  Gdlabar.    The  loss  of  Ufa,  t  lo  i^li  gre  it,  wAi  a  >:  ^ 
deuloraUe  as  on  the  previous  attempt. 


1869]        09  TRB  TRADV  WITH  THB  OOLORBD  R40B8  OV  AVRIOA.  31 

In  1841  followed  the  well  known  government  expedition,  which  cost 
the  Cfitintrv  upwards  of  £200,000,  and  accomplished  aWlutely  nothing. 
The  failure  of  the  expedition  was  foreseen  by  Mr.  Jamie9on  an^l  Mr. 
Laird,  while  the  late  Mr.  Thomas  Stirling  wrote  to  Lord  John  Russell 
predicting,  with  marveloas  accuracy,  the  misfortunes  which  ensued. 
Though  the  sickness  was  general,  the  loss  of  life  did  not  exceed  fifty- 
three  out  of  a  complement  of  three  hundred  and  three« 

In  marked  contrast  with  this  dt^plorable  failure  wsa  the  expedition 
fitted  out  b>  McGregor  Laird  in  1854,  at  his  own  risk,  but  partly  assisted 
by  government.  Under  charge  of  Dr.  Briikie  the  steamer  ascended  the 
Tcbadda  three  hundred  miles  beyond  the  point  previously  reached,  and 
relumed  to  Fernando  Po,  after  having  been  in  the  river  one  hundred  and 
eighteen  days,  without  the  loss  of  a  man.  This  gratifyhig  fact,  so  differ- 
ent from  all  pteyious  experience,  was  due  to  better  sanitary  arrangements 
and  the  u$e  of  quinine  as  a  preventive ;  also  to  the  plan  of  manninsr  the 
»bip  Kith  blacks,  and  bending  the  smallest  possible  complement  of  Euro- 
peans to  officer  the  ship  and  work  the  engines.  By  the  observance  of 
these  rules  the  frightful  mortaMty  has  been  obviated,  which  previously 
was  the  sure  attendant  of  a  river  expedition. 

Notwithatanding  that  this  expedition  was  mainly  one  of  exploration, 
the  produce  picked  ap  in  exchange  for  outward  cargo  realized  £2,000. 

Encouraged  by  these  results, Mr. Lnird  entered  into  a  contract  with  her 
Uajest^*s  government,  binding  himself  for  a  small  subsidy  to  maintain 
Bteam  communication  on  the  river  and  its  tributaries,  and  to  carry  goods 
tod  passengers  for  all  who  might  offer.  He  further  embarked  a  consid- 
erable capital  in  trading  stations  at  various  points  on  the  river. 

In   857  the  returns  realised  aboaf ^.£4,000 

Iq  1868  owing  to  various  drawbacks  they  were.  •  • 2  500 

lo  1S69  they  realised  aboat 8,000 

In  1860  there  was  no  ascent,  owing  to  the  hostility  of  the  natives  in 
ihe  delta  and  the  absence  of  a  promised  convoy.  This,  however,  led  to 
the  conclusion  that  the  best  way  to  remove  the  hostility  of  the  people  in 
the  river  and  delta  is  to  trade  with  them  at  proper  intervals,  since  it  was 
proved  on  this  occasion  that  their  hostility  arose,  not  from  the  presence 
of  white  men  in  the  river,  but  because  the  steamers  gave  them  the  go-bj, 
whereas  they  have  been  in  the  habit  of  levying  dues  on  all  canoes  passing 
np  and  down. 

Unhappily,  while  maturing  these  plans,  Mr.  Laird  died  in  1801,  and  it 
l/ecame  my  duty  as  his  executor  to  close  up  these  most  interestin;^  opera- 
lions.  Accordingly  the  steamer  made  it^  final  ascent  in  16dl,  and  the 
jear*s  trading  in  the  delta  and  river  realiod  £10,000. 

During  the  next  four  years  a  gunboat  was  sent  up  annually  with  tjp- 


38  03r  TBB  TBA9S  WITB  TBS  60L0RC»  UJkOEM  Of  AFUOA.     [A^, 

plies  for  Dr  Brtikie  at  the  ooDflueneOi  where  be  held  tlie  post  of  agetttfcr 
Her  MajfRtjV  Qovernroent,  a  })o»l  which  has  since  been  raised  iuto  aoM< 
Bulate,  Ntid  is  now  belJ  by  Mr.  Ljons  McL^^c*. 

The  Ni.er  enttrprise  has  since  been  Uken  up  by  a  Mtnohester  oom- 
pany,  unsupported  by  a  subsidy.  In  1865  they  sent  a  siesnier  up  la  tk 
ooiiflu»  noi  wiih  a  well-assorted  cargo  and  an  experienced  asent,  w\AA 
resulted,  I  uuderstantl,  in  the  most  successful  year's  trnding  yet  attaioed. 
The  operations  of  1866  and  1867  hare  not  traaspired,  but  if  noieqoillj 
suoceishful  it  has  not  been  due  to  any  inherent  ob6tacl«*8,  but  rather  to  ths 
limitel  scale  on  which  they  have  been  cooduoted.  Whatever  may  beibi 
result  of  the  spirited  operations  of  this  company,  they  have  certainly  mads 
Talu  >ble  additions  to  our  stock  of  experienee. 

The  truth  i^  that  at  present  no  steamer  will  pay  her  expenses  oo  tin 
river.  The  carMvan  trade  has  to  be  diverted  gradually  frons  the  doart 
rou^e^  to  Trifioli  and  Morocco  towards  points  on  the  rivers  Niger  lad 
Tchadda.  New  markets  have  to  be  ef«tahlished,  and  new  indu^triethtn 
to  be  created,  to  supply  returns  in  produce,  before  the  traffic  will  suffice io 
cover  the  heavy  expense  of  steam  navigation.  Betarns  will  be  obtaioed 
in  ivory,  shea  butter,*  indigo,  and  other  articles  of  produce,  and  alreidy 
the  native  lraflerf>,  availing  themselves  of  the  steamers,  have  brought  down 
native  cloibs  made  in  the  interior,  tobea,  fine  mats,  and  other  goods, 
whieh  sell  well  on  the  coast.  But  to  effect  any  good  in  the  Niger  steam 
navitration  is  indispensable ;  and  to  raaiutain  this,  a  snbeidy  for  five  jean 
I  coi'sider  would  suffice,  aa  by  that  time  it  would  become  pelf-aapportiD?. 
Whoever  embaik<<  in  this  enterpriae  without  a  6ub»dy«  must  be  prnpared 
to  incur  heavy  lorn  fcr  several  years,  merely  if  aaooesafnl,  to  open  tbewij 
to  others  who  would  be  eager  to  reap  the  fruits  of  his  outlay. 

Impressed  with  these  views,  I  urged  on  Uie  Government  the  advaotiga 
of  continuing  the  subsidy  granted  to  the  late  Macgregor  Laird,  to  whoever 
would  carry  out  his  plans,  with  such  amendments  aa  experience  has 
ainre  suggested.  These  were,  to  place  suitable  steamers  on  the  river  ibr 
a  monthly  service  to  the  confluence  during  eight  montha  of  the  jear^ 
while  it  is  navigable  for  cargo  vessels  ;  to  offer  every  inducement  to  tbe 
native  traders  (educated  blacks  from  Sierra  Leone  and  Liberia)  to  enter 
into  the  trade  and  become  a  useful  class  of  middlemen  ;  to  employ  tbem 
freely  aa  clerks  and  agents  under  Earopean  superintendence ;  to  fbm 
trading  statione  at  proper  intervals,  and  keep  the  same  stocked 
with  goods,  so  as  to  obviate  the  hostility  of  the  natives,  and  tbos 
make  sure  of  the  ground  as  far  aa  the  confluence ;  operationa  could  sab- 
aequcntly  have  been  pushed  up  the  Tchadda  in  sea^going  steamers  300 
miles  above  the  confluence,  or  570  from  the  aea,  and  up  the  Niger  470 
nilea  from  the  aea  to  the  rapida  near  BouMai  beyond  which  the  Nigar  it 


1869]       Oir  TBS  TRADB  WITH  THB  COLORED  ftAOlS   OF   IfRtOA. 


33 


a^ftin  avAilftble  for  transport  through  a  fertile  country  as  far  as  Bimma* 
koo,  a  dmtance  of  nearly  1,000  miles. 

An  iiiflaenlial  company  offerod  to  embark  £30;000  in  8teamf>rs  and 
tradincr  eiations  to  carry  out  these  oporations,  stipulating  for  a  subsidy  of 
£6,000  per  annnm  for  five  yearB,  which  they  considered  would  be  equiva- 
\*'hi  lo  snaring  the  loss  on  the  first  two  or  three  years  equally  between  the 
Government  and  the  compnn/.  I  regret  to  say,  tbat  although  t  U  otfer 
W8:*  Approved  by  Lord  Palinerftton,  and  recommended  for  &  loption  by 
Lord  R  issell  at  the  Foreign  Office,  in  which  department  the  matter  orig- 
mtfd — the  Fcheme  was  vetoed  at  the  Treasury. 

I  tro^t  I  may  be  excused  for  dwelling  so  long  on  the  Niger  enterprises, 
because  it  is  impossible  to  overestimate  the  importance  of  that  liiajestic 
river  as  the  only  availabhs  hi^^hway  to  the  Mnhomedin  countries  of  the 
Soudan — fiopulous,  productive,  and  semi-civilizdd — the  key  to  the  regen- 
eratiun  of  Africa. 

Ill  concluson,  I  may  be  allowed  to  express  a  hope  that  the  success  which 
bas  at  length  crowned  our  efforts  for  the  suppression  of  the  slave  trad^on 
tbe  w»-8t  coast,  may  not  lead  to  a  premature  withdrawal  of  the  squtdrc^n 
aod  the  relaxation  of  oar  vigilance — but  rather  that  the  same  syaiem  may 
be  extended  to  the  east  coast,  so  that  a  fljurisfaing  trade  may  be  e^tab* 
iished  there  as  it  has  been  on  the  weatr^that  we  may  press  for  more  strin- 
:;^Dt  treaties  with  Persia  and  Turkey,  Egvpt  and  Muscat,  so  that  the  sea* 
(^orne  slave  trade  may  be  stamped  out  wheresoever  it  may  be  found — 
aod  thMt  although  we  cannot  directly  reacht  the  inland  slave  trade  it  may 
U^  as  effectually  exiinguished  by  the  encouragement  of  steam  navigation 
0 1  the  Niger.  By  these  means  it  may  be  that  the  gloom  whicn  has  for 
lor.g  ages  settled  upon  this  great  continent,  will,  in  our  time,  be  lifusd  up, 
and  the  dawn  of  oom.uerce,  civilizttion,  and  CUriaiianity  be  hailed 
ihroagout  the  length  and  breadth  of  Alrica. 


I  — UToaa  or  ram  vuxBaa 


Year. 


APPENDIX. 

or  SLATIS    XZPORTSD  FftOX  THB 

■iMoa  1848. 


WIST  COAST  or  araioa 


Imported 

in<o 

Br  Ell. 


184» 

li.O 

54,06  ( 

t«,866 

8,287 

800 

None 

1^51 

1*52 

\m 

•8  i 

None 

1535 

90 

i^S" 1 

l!J.7 

1-53 

\n* 

No  alaves 

imported 

>    ainod     - 

the   year 

1866 

^^^ 

IWl , 

1842 

IMS 

Ib64 

Imported 

Into  Oubik 

No  reiuio 

8,7"0 

8,10) 

6/0.) 

7.«24 

2,600 

ll.i'lO 

6,408 

7,»04 

1(>,486 

16,99a 

80478 

24896 

23.964 

1  ,264 

7,f07 

6,807 


Impo-ted 

into  Porta- 

gaeae  Col. 


•  •  •  • 

•  •  •  • 

•  •  •  • 
.  •  •  ■ 

•  •  * 

•  •  •  • 
.  •  •  • 

•  ■  •  • 

•  •  •  • 

•  ••• 

•  •  •  • 

•  •  •  • 

•  •  •  • 

lei 

16 


Captured  bj 

Her  Mhjeaty* 

cioiaes. 

t,97i 

4,-74 

6,«60 

1,020 

287 

None 

None 

9<) 

Non^ 

1,408 

88 

981 

2,665 

8,^8.J 

1.989 

1,425 

847 


s  Total 

ezp*ed 

66.V7S 

67.486 

82,606 

9.807 

8,961 

2,600 

IM^O 

6,588 

7.804 

11.844 

n.026 

81,461 

27.660 

2R.102 

>8,$04 

6,947 

7,124 


I4i,<.94 


184,664       1,477      80,696      857,980 


S4  oar  tqi  traps  yrnn  tqk  cpdORso  racis  of  ^raQ^.    [Aidft 


T«. 


II-^TftApi  or 

of  lmp<»rt« 
to  Uilt«d 
KlugdouL. 


TBI  Ultrr?9  KIKCOOII  WnU  TEE 


oitfr  or  uwKA, 


Rea'  Tane 
••I  ex  orU 
fumU  lud 
jKiLiidoni. 


1867  ....£.  ,062  000      iB  1 ,1 92.0  '0        t.OOO 

1868  ... 
1869.... 
18iin 
1  Al 
186i 
186S 
)8rti   ... 
18H6* • • • 
1666 


I 


• .  • 


•  •  • 


■  •  • 


•  •  • 


Ivory.  Gold  asd  oIlTar 

Cvt>  iiLpot  tt  d  lo 

ITniuo  Kiiig  om. 

Not  i;iv»ii  •-I'A*^- 

Atoly  be  ore  1868 

1776  0  0        1,189.000        S.nOO    *        IM.OOO 

1,690.000         1,244  000         1,000  IM.OoO 

1.9  2.0r0        1.668.000         1,0  0  101.000 

1,710/)00         l.A69.(MI0         1,  €0  80000 

1,960,00)         1,626,000         1,000  106,«'00 

1,608,(100         1,^76.  00         IJOifO  78,000 

1,860,000         1,10^,000         V,000  12'V  00 

1,760.000         lS2,i00        2,0(0  182.000 

1,971,000        1,8.6,0  0        8,00  189,000 


Q*1dM4-4lNI 

'Xiot  rifr  ■ 
Vuki  n  { OK 

rot 
|iTeiiesaiit4 

IMl 

64jm) 

6  /)0 
67.1100 
4,001 
60,0^ 


Soto— ATorMtt  of  iTory  for  ten  7<^n,  from  18a0  f^  1S40, 2,161  cwt. 
'*****  18^7tel«»,1,c1ic«rk. 

UL^riuc  OIL  mrORVBD  int'^  thi  ukitbd  srHoooif  raoii  nn  van 

ArOlOA   SINOK   IBM  IKAtL    1790. 


[Tons 

In  this  tab  e  giTon  in  ronad  nuaben  ] 

Yror. 

Tons. 

Te  r. 

loiii. 

Tear. 

Tm 

179  I.... 

lOii 

1816.   . 

1,2  U 

l»4i.... 

fly  • 

1791. ••• 

800 

1817.... 

1.600 

1848.... 

i.m 

1792  ... 

200 

18  8... 

1600 

1844   ... 

!o.n« 

1798.... 

200 

1819.... 

8,7oO 

1846.... 

«5.« 

1794.... 

*    100 

18.0.... 

803 

1846.... 

ISJM 

1796  ... 

100 

1821.... 

6,1  0 

1647.... 

IS  Hi 

1796^.,. 

Bacwdi»baiDt 

1822... 

81t»0 

1645.... 

»m 

1797. ... 

100 

1828.... 

8,800 

I8i9.... 

S4^ 

1798. ••• 

8(0 

1?24   .,, 

^,700 

18  0.... 

v,m 

1799... 

200 

Ib25.... 

4  800 

186   .... 

r,m 

180v... 

200 

1826.... 

t,000 

1882.... 

H<i 

1801.... 

200 

1827.... 

4,800 

1858.... 

8I.S» 

18  2.».. 

4  0 

1828.... 

60^)0 

1864. ... 

VJSA 

1808.... 

600 

1829  ... 

9.0IK) 

186».... 

4\'^ 

1804.... 

800 

18S0.... 

10,700 

1666.... 

SIU4 

18i«6.... 

200 

1881.... 

8.100 

1867.... 

4S,7* 

1S06  ... 

400 

1882.... 

10,900 

1^88.... 

UM 

1807.... 

100 

1888.... 

1  ,800 

1869.... 

8,f6 

1608.... 

600 

18<».... 

18.600 

I860.... 

fff6 

1809. ••• 

700 

1886.... 

18.900 

1861.... 

u;«i 

1810.... 

MOO 

1886  ... 

14.9»I  • 

1862.... 

4110* 

ISU.... 

1200 

18H7   ... 

11.1  0 

1866.... 

U.^ 

1812 

600 

1688.... 

14.00  » 

i864.... 

»JN( 

1818.... 

Booordo  burnt. 

1889.... 

17,200 

1805.... 

l»J«l 

1814.... 

I,«t0 

1840.... 

16,800 

1866.... 

»;•• 

18.6.... 

2,000 

1841.... 

19,90J 

W.-^omuAT  or  tbb 


TAADB  WITH  TBS  00100B»   BAOtt  Or 

Lion  AMD  ariciB. 


[Mmu  ia  tbia  table  g.voa  in  roind  aaAbeia^ 


Ioii'Ort« 
into  Alkico 

United  Kiagdom £l,874,o00 

Fraoce 767.0.0 

Belgtttin 8,00  • 

8paiB. ••  »4 . • .  ..■••••••••  4,000 

Forittnat 800,000^ 

HoUabd.. 81,OuO 

Otrmaoj..^.. %4fiji,^ 


Bs(>Qr<a 

f  om  A  ffiea. 

Ui 

£|,V57,U00 

AraofS 

1,058,000 

m             ^ 

26,000 

<•              • 

2000 

M                   ^ 

409/00 

M                   « 

98k  00 

M                   • 

H080 

m              m 

ta^MlMI 

18f« 


1889]                                       fBB  ytVAKOTAI.  OUTLOOK,  ^5 

Iflit>ortf  Vzpovt^ 

Into  Africa.  firom  Afr  ea.                  XemonoidA. 

Dfiir«l  StotM 819,001  48ri.O)0      TAarl8tfi. 

Bruii 541,000  SO.O'O      Av«  of  8  ymn  MdrJ  1M4 

Bwi  Imliei 166/>00  227,000        -          «          «        ^13^4 

Gipe  Ouod  HofM  Aud  Natal       180,000  180,000*    Kttimate. 

^ »<><»<-  »».o  0 1  'v;a.<,!'a,Sri?r««;r* 

BAriwrjSUUs 150,000  71,000      At«  of  S  )ear«  obdM  1864 


<.f 


iC8,58O.O0O        £>/8T,000 
UNMlkoacas  (aaj). 100,000*        100,0i<* 

£^,080,000       £4,787/>00 


THE  FniSCIiL  ODTLOOI. 

Two  opposite  opinions  are  held  in  regard  to  the  provpecta  of  tie  money 
market  in  the  iDinaediate  future.  The  more  hopeful  view  19,  that  the 
spasroa  we  have  had  during  March,  April,  and  June  have  inspired  the 
basinesa  community  with  so  much  caution,  and  have  tended  so  strongly  to 
'prevent  the  inordinate  inflation  of  credits,  that  there  is  more  soundnenn 
and  strength  among  the  timbers  and  girders  and  buttresses  of  our  financial 
^ifice,  and  therefore  Ifca  probabih'ty  of  any  untoward  catastrophe.  The 
opposite  opinion  is,  that  the  profits  of  business  have  for  a  long  time  been 
small  and  precarious,  while  the  whole  of  our  credit  system  is  in  a  feverish, 
excitable  condition,  the  money  market,  like  a  patient  with  depressed 
ritality,  has  suffered  so  much  from  recent  shocks  as  to  have  less  stren^^tli 
and  elaatic  vigor  to  recuperate.  The  inference  is  that  there  cannot  be 
much  improvement  for  the  present,  and  that  we  may  have  some  great 
financial  convulsive  cra^h. 

Probably  the  most  notable  aspect  of  these  various  phases  of  pubh'o 
opinion  in  regard  to  the  money  market  is  the  uncertainty  which  every 
one  feela  as  to  his  conclusions.  Never  since  the  close  of  the  war  has  siuh 
an  anomalous  state  of  things  prevailed.  Yery  few  persona  can  be  fount 
who  can  give  any  rensonable  connected  explanation  of  the  reasons  why, 
contrary  to  all  precedent  and  in  defi.^nce  of  the  usual  laws  which  are 
supposed  to  govern  monetary  affairs,  the  very  seflson  of  the  year  when  we 
usually  have  the  easiest  money  market  has  witnessed  a  spasm  so  severe  as 
that  of  the  last  week.  Failing  to  explain  the  past,  it  is  obvious  that  our 
busineaa  men  are  at  fault  in  regard  to  what  is  to  come,  and  when  they 
attempt  to  forecast  the  events  of  the  future  they  show  a  restless  anxiety 
and  an  uncomfortable  want  of  confidence  which  are  equally  paralyzing  to 
fodoatiial  enterprise  and  adverse  to  commercial  activity. 


•  Itams  wUch  havs  beta  Mtlnatod. 


16  TOX  fJV^lfOlX}^  OITTMOK.  [/Wy, 

I 

Between  the  two  opposing  views  to  whtcli  we  hare  jntt  referred  there  is 

a  tbird  and  more  prevalent  opinion,  wbicbf  thoagh  leee  gloom j  Uitii  tk« 

one  and  lees  hopeful  than  tbe  other,  ie,  perbapsi  naore  free  from  erroti 

and  more  broad  in  its  analysis  of  the  phenomena  of  the  fioancial  outlops. 

Tbisopinion  ri'Sts  on  the  fstct  that  the  trouble  in  the  money  market  doti 

not  arise  from  any  great  catastrophe  which  has  impoverished  th«  natua 

or  impaired  any  considerable  ptirt  of  its  prodnctive  powers.    Il  is  impa* 

fible  to  travel  se  any  part  of  the  United  Stat<»8,  in  the  North  oriatke 

South,  wi  bout  the  oon victim  that  in  all  the  elements  of  roaterisi  wealth 

there  is  a  gratifying  and  rapid  advance.    Railroads  are  being  eiteuded, 

Haw  manufactoriirs,  residences,  and  other  buildings  are  rising  up  sroBOii 

xiS|  and  wherever  we  ^o  in   agricultural  districts  or  in  maottfjdarie{ 

oentres  there  is  offered  to  the  eye  the  same  evidence  of  iovisinestcl 

capital  in  productive  enterprises.    In  fdct  it  is  this  very  ouDversoo  if 

flo<iting    capital    into    6xed    capital,    to    which    we    have   a^sio  sid 
ag^iii  pointed  as  one  of  the  dnngers  of  the  financial  sit  jatioo«    M  a  bs  i£0 

we  pred'cted  that  trouble  would  come  from  this  cause, and  we  eppealeilfi 

history  and  to  experience  to  show  that,  both  in  England  and  in  this  con* 

try,  seasons  of  rapid  conversion  of  floating  capital  int^  fixed  forms  oeTif 

fail  to  disturb  the  loan  market  and  to  deplete  that  resenoir  ot  loaoalb 

floating  ca[iita],  from  which  the  banks  and  lending  institutions  snpplxtl^i 

wants  of  commercial  borrowers. 

The  second  point  insisted  on  is  connected,  not  with  capital,  bat  wilhtii 

currency,  by  means  of  which  the  movements  of  capital  baween  leoderuli 

borrower  are  kept  lively  and  elastic.    It  is  a  law  of  finance  that  wbes  tfllj 

much  currency  is  afloat  the  movements  of  capital  are  too  active  and  leJ 

to  ii'flation  and  speculative  mischiefs,  and  pave  the  way  for  sulseqseBt 

depression,  just  as  inordinate  excitement  and  fever  in  the  hun:a  •  orgaoi^ 

brings  on  languor,  depression  and  weakness.    When,  on  the  other  Itsodi 

the  volume  of  currency  is  too  sniHl),  the  active  energies  of  bo$ic<»  v* 

paralysed,  and  spasms  and  convulsions  of  greater  or  less  extent  sel^oa 

fail  to  supervene.    Now,  it  is  fur  this  reason  tbat  contr-ction  of  iLectf^ 

rency  produces  bo  much  harm,  except  it  be  done  at  the  right  time  sfiiiA 

the  right  way.    And  there  ar<j  three  facts  which  in  this  connectioa  sbo&i^ 

be  steadily  kept  in  view.    The  fir^t  is,  tbat  in  consequence  of  tbegretf 

number  of  small  farmers  who  are  producing  the  Southern  crops,  a  a»n 

ample  volume  of  currency  is  needed  to  move  these  crops.    Sixty  miilidi* 

of  currency  went  South  during  the  early  months  of  this  year,  ooe-Lslf »( 

which  has  not  returned,  and  perhaps  will  utver  mnke  its  appesrsnce  ^ 

again,  except  as  worn-out  notex«,  to  be  replaced  by  new  carreucy.   Sic-i  s 

heavy  depletion  of  tbe  circulating  current  could  not  possibly  tak«  |'1«^ 

without  producing  trouble.    Second  y,  we  have  had  the  furtlicr  Hbsor^ih^ 


1369]  TfiB   BAKE   eONVRKTTOir.  SY 

afcinrpncv  infrt  the  Suh-Trpft^ury,  which  was  perhaps  tinavoidahle  for 
rewon«to  wlich  we  advfrled  iBst  week;  and  ihiidly,  we  find  thnt  the 
banb  of  till*  rUy  are  iinni^UHllj  p^-or  in  currency  reserve.  They  hold  no 
rrope  tli«n  140  612,000  in  greenbacks  and  greenback  certi6cat(B,  while 
theTrpa'iMry  it-elf  has  but  nineteen  millions  of  currency  in  all  its  dfposi- 
tories  ihronixhout  the  country.  Last  June  the  Treasury  held  ihirty  mil- 
lioM  at  d  •  ur  cit>  bank^  sevi^ntytvio  mijii'^ns.  Thus  we  see  the  airgregata 
U  now  lei's  tlan  that  of  la^^t  year  i»y  the  v»st  sum  of  thirty-four  millions 
ofdollrtr*.  W<^  nppfl  offer  no  firther  evid^-nce  of  the  vast  extent  to  which 
the  eircuUting  medium  ha^  leen  absorbed. 

N  w,  what  is  the  practical  inf^^rrnce  fion  all  this?  The  most  impoi^ 
tant (Minc'usion  u  idout tndly  is^,  that  our  monetary  trouble')  d>  d  t  ariss 
fromonr  jrr'iwjnjj  poonr.  We  are  growing  richer  as  a  rati  »n  ;  and  the 
prestnl  t)  roes  Hnd  spasmq  which  cnnvulne  thp  money  market  now  an  I  ihen 
are  premonitory,  not  of  ifie»kness  and  dec  dence,  lut,  Ike  tie  morbid 
troublcH  at  d  lemporflry  maladies  incident  to  infancy  and  youth,  they  give 
the  promise  of  a  healthy  grov^th  and  a  more  viaorous  prosperity  when 
they  sIihII  Itavp  panned  away.  Tliev  remind  us  that  we  are  a  vlt'oroust 
y^ur'g  nation,  and  are  suffering  some  of  tlie  troubles  of  youth.  It  U  clea^ 
that  thvi  monetary  derHni;ement  which  troubles  us  is  due  rather  to  super* 
fidal  d-ferts  in  our  financial  machinery  than  to  any  fatHl  miat-hiefs  which 
lurk  dfep  in  the  vitwls  of  the  body  politic  Mn<l  threaten  its  irrowtl',  its 
permnnenre  or  its  progrps««.  If,  then,  we  sc«rc<^ly  dare  to  hope  for  qu'te  as 
Bwift  a  recuperHtion  as  the  more  hopeful  ohservers  predict,  we  arp  quite 
sore  that  the  croakers  will  now,  as  heretofor<>,  turn  out  to  be  filse  pro^^hets 


t^*0m0^fm0^^^^*^m0^0^0^0^^0^^t0*^m0^ 


THE    BAM  COSTENTIOl 

On  Wednesday  the  Nntionnl  Banks  h^-ld  a  convention  at  the  St* 
IficlioliH  H»t«*l,  in  this"  cit),  and  delegates  were  prr'Sent  from  almoft  every 
State  in  the  Union.  The  ohj'-ct  of  this  meeting  was  to  orgsin'z  h  volun- 
tary  association  comprehending  all  theNHtion;il  Binks^in  theUiiii<d  Stites 
for  the  t'Urpojie  of  (-nnbling  the»e  institutions  to  act  together  as  a  unit 
in  matters  of  com tnon  concern.  The  ori»a»t'Zition  has  bein  'u'y  iT>ade 
•nd  the  association,  f>r  good  or  for  e«ril,  is  nt»w  in  full  opt^ratioJi.  Some 
of  the  leading;  bankers  in  N^ew  York  and  other  financial  c«*ntre<  havi'  long 
been  of  the  opinion  that  to  promote  the  internal  « fflci  ^ncy  of  thf  banks 
all  over  the  country,  there  sh  'uM  be  bet*veen  them  norrie  clo^^er  hond"^ 
some  more  intiimte  union,  tii^m  is  eatHhlished  by  the  Ni^ional  Currency 
law,  and  bv  the  Binkiiia:  H  ireau  at  WaHhiuLrti^n.  To  c^rr  o  t  this 
purpose  several   meetings  have  been  uonvoned,  and  ootwithstanJii  g  tl  ^ 


SB  TRX  BAKX  comrxvTioir,  [/«^ 

diffionltM  whicb  nro^e  from  the  opprsition  of  a  few  of  tiM  banb«  tftd  fm 
ibe  iipHtiiy  and  indifference  of  oibern,  these  gentleii^en  pert  veml  in  tboi 
plans,  and,  as  we  see,  the  contemplated  aasociatiun  bus  been  si  length 
C0D8umm>it«'d.    To  give  due  efficiencj  to  a  voluntary  orgaLisition  of  ihji 
sort,  it  19  of  course  indirpen^Hblc  ibat  the  tat  ks  gt^n^  r  dljr  rhoaM  job  it* 
and  ibat  its  powers,  duiie<t  and  aims  rhoulJ  be  df finitelj  known.    It  ii 
a)so  important  ti)at  its  exf  eutive  oflSccrs  should  l/e  men  of  enlf^btesed 
views.  And  tbait  the  public  good,  rather  tlian  the  privNte  ii  terei>ts  of  tb« 
banks,  should  be  the  paiatiiount  ot  jects  to  wbicb  tbe  efforts  ufihe  or^siied 
body  should  direct  tbt-mselves.     We  are  on  tbe  <*ve  of  ^r  at  fioaodil 
changes,  and  the  anomalous  condition  of  mon^tHfj  affAirs  indicates  comisf 
trouble'.    Never  before  at  this  season  of  the  year  las  the  mone^i  mirka 
been  so  stringent,  s)ia.«modic,  and  ffveriab  aa  now.    Ibe  public  miodii 
busying  it«elf  more  and  n)ore  with  financial  questions.     Tuerts  u  a  stroog 
prob'biliiy  that  in  tbe  next  session  of  Congress  there  will  be  a  ttonnj 
disenssioD  of  some  of  the  leading  financial  topics.     Under  tbe  ]ire»«reo^ 
public  distress  there  will  be  a  rigid  scrutiny  of  tbe  monetary  in^cbiotfj 
of  the  country,  and  if  it  should  ap[)ear  that   the  banks    are  to  blame  fof 
any  part  of  the  trouble,  tbe  privileges  arid  franchises  vf  ib«se  inf»titu^ 
may  be  assailed,  and  the  banking  system  itself  may  be  in  j'^opirly.    Wi 
have  no  desire  to   play  the  part  of  alani.ists,  but  it  mu>t  be  obriooslo 
every  di^passion  te  observer  that,  under  the  cireum-tHnces  to  which  vi 
have  adverted,  great  advantages  to  the  banks  themstlve^  t>  the  mouetttj 
condition  of  the  country,  and  !0  Cor  gress  whicb  will  have  to  l^i:<Ute  rtfti^ 
ing  both,  will  be  f-ecured  if  there  U  fonie  central  orgamxiiion  antung  tbi 
banks  themselves  which  is  actively  at  wuik  to  correct  eviU,  lo  givs  foil 
effi  i  ncy  to  the  banking  system,  and  to  bring  it  into  harnony  with  ibi 
general  interests  of  the  country.     That  the   foremo^t   men  atii<*ng<nr 
banking  leaders  are  alive  to  the  perils  of  the  financial  situntioir,  and  auxioe* 
to  apply  a  reme<ly  for  the  evils  of  tbe  N'ltional  bankinsr  system,  ttof 
ia  ahui. dint  evidence  in  the  fpeeches  which  were  dehve"^d  at  tbeOoo- 
vention.     We  are  glad  to  hear  that  an  official  report  of  tbeni  i<>  to  bi 
printed  in  pamphlet  furnt  for  dit^tribotion  among  theb^nks.     I.i  t^le  opd* 
iog  a''dr<ss  f)f  the  G  lainnan,  the  lion.  £.  G.  Spaulding,  of  B'fialo,  it 
find  tbe  luUowing  remarks  about  tbe  association,  « hicb  are  of  gecsnl 
inter  t^t : 

Tbe  firpt  National  Ba^k  rorrTontinn  w-^s  h*Yd  h\  (hit  city  in  OHoHer.  1B<*.  fcrtki 
fmp'  re  <'t  u  gAitiAAtion  Arid  a  e^O'^  rt  «>f  net  on  iti  rcsmrd  ^i  n  a'tr-iv  ol  e-^na  'O  i  •(•«t 
pert  ii  ifiit  !«•  all  i«a  i<>nal  l>  n  >  org>inis-'d  uoiter  the  NaiiMal  Uw.  IriU  ^«fS- 
tion  WHft  r>eld  vhile  the  M^re  '*  wai*  hfio^  p«  t  i<  to  op  ra*i  o  anl  bi>fijre  ihr  Stttt 
baitk**  bat  ircneralH  (tea  ei<  to  bee  m»  NaiiciiMii  bank*.  Many  c*aw«  haw 
taken  {''ara  vioce  that  tun*'.  It  wax  thoukbt  b»*i*t  U>  coll  a  ne  0>  V  ^rmm  haH 
general  n*  lie**  |{ivfii,  and  <  I'tMin  if  |Mi«>piri|i>  a  fril  nelettatm  frnm  ad  |<art»  nf  tki 
l^^untry  tor  eonraltaiiuo.    What  was  then  rqgar  j«d  by  auu.j  aa  aa  eAparuMMii  m  aw 


IM]  THK  BAKK   COK^CKtlOV.  Sft 

aBtrenirp^sfi^  Uri,  The  Katio  si  Bant  typ'em  ix  now  in  ^11  np^mtlnn  under  tli# 
lav,  and  it  a  d#e  d<wl  auecefi.  It  haa  bean  'ri  d,  and  ia  row  generally  rmKrdcKl  to 
be  the  he-t  tanking  ayntem  that  ha*  ever  he4*n  dcyis-d.  It  ia  of  incalculaMe  bt4>efik 
to  the  eitmnoer^H}  oi  the  country.  It  hut  nnt  ^et  he«n  faUy  perfrrt*-d  in  all  ft*  parta. 
There  ia  no  prop  r  redemption  <  f  the  nat  otuil  eurrei.ey,  and  Ibera  cannot  be  until  thaie 
lie  te*  eril  re*<uinption  nf  dpecie  p^ymento. 

ITie  ha'tka  are  mi  titerwoveii  with  all  the  bnaWaa  {nt#reata  of  the  oonntry  that 
their  J  ifii  mwopemrion  and  f^ood  nanaifenrent  ie  of  great  o«M)»equenoe  to  thrrurelves 
aa  Well  a-*  thM  i/overrment  and  biicineaa  community,  h  ia  ▼»  ry  apparent  aleo,  th  t 
there  ip  a  community  of  int«^r*ata  b  twet^n  the  baulcp,  the  soyeinment  and  ^wopTe, 
aod  that  a^t  are  intereated  in  the  prudent  and  60i*e  aefai  workini^  of  ihe  a^atem  and 
an  oUt(i>ate  re  urn  to  tipecie  piyiuenta. 

The  t»lj  Hit  of  thi<  CvinTention  ia  t«»  ma^e  a  new  onrar  ii  ition,  which  will  aid  in  per- 
feetinir  (h**  ayvtem  and  aa  fkr  as  roai»ibl«f  areoropMah  the  bfut'dnal  \  urpoaea  mtend  d 
by  th«  ir  o«gH  iz}|ti«>n.  namely,  aoond  and  well-oian^ed  bueioeaa  bai  ka,  and  a  pr<>n  pi 
redemp  inn  >  f  their  currency  in  i^ld  and  ailrer.  It  i<t  very  obvious  that  'he  rocn  >j 
moat  paaa  throogh  an  iaip*  rtant  crirtia  before  we  reach  specie  p  <yti  e  tta,  and  that  ti  ere 
most  be  mutual  ad  au'l  oo-op«*ration  t»yali  parlic'*  to arc.>'npii»h  ng  that  re^d  . 

Banning  ia  eminently  a  pracioal  buaineea.  I*  requiiea  akiii  and  g(K>d  boeinraa 
capacity  equal  to  that  of  any  oth  r  baaioe««.  It  U  the  eapeeial  duty  of  the  g  Tero- 
ment  to  jwot  ct  t^e  billholdera,  who  are  not  able  to  protect  theuia  tT«*a,  againat  l<iap  io 
caae  of  fnilare  of  the  bankf*.  The  i;overnm**nt  ha<<i  perr»rrofd  tbia  duty  well.  'I  ha 
iecortty  \n  ample*,  and  thp  goTvmo}ent  gnarnnt'ea  the  billh<>liler«  asfainat.  all  loa  .  The 
other  «  peraiima  of  th.)  baoka  aboold  be  man<ged  by  the  « ffieera  an<l  d  leeufa.  li  e 
other  maitera  of  ba->i  eaa.  The  buatnw-a  tiff  li  a  of  Uim  bank  a  can  b««  mu  h  \wi  er 
maaaged  by  the  officera  of  the  banha  them»eWea  than  hy  the  goTernment,  <>r  by  ny 
officer  of  ihe  gitTfrnment.  Ir  the  fin>t  Hralt  of  th^  National  Bana  bill  the  chiel  •  ffi  'er 
of  the  Hank  D«'partii>ent  waa  called  **  B<i' k  Comi  trojler,**  v^bicb  aei-m**^!  to  iu.ply 
thai  he  ahool**  htve  control  over  the  buaineea  op  ri  i.ma  of  the  banka  aa  well  a^  the 
corren  y  ;  Itnt,  op «  mtture  consideration,  the  iHd  wa«  change  i.  ao  that  in  the  la  ^  aa 
paaaed  he  ia  catle  *  C  mptro!ler  of  th**  C  urencv  "  wi  i  h  implies  am  re  li  i'ed  con* 
trol  over  the  operat>ona  of  the  banka.  The  aw  h  la  beeo  amended  frim  time  to  time, 
and  aa  it  now  atan  a  onleri*  oti  thia  ttffijer  importani  powera  and  d  it'e«  ;  but  1  do 
Dot  prop>xie  to  Hicu  a  them  at  tbi«  tim-*.  I  on  y  deaite  to  aay  that  the  Free  k  on  g 
law  «.f  New  York  worked  renarkably  well  fir  tw<;nty-Qve  ^eara,  and  waa  vn'j 
popular,  for  the  r»i»on,  mainly,  that  it  w^a  open  to  all.  The  currency  wat  well 
wcnred,  aiih  atiict  rulea  for  ira  prompt  red«*mption  in  iro'd  and  at  ver.  while  the 
bosiDeaa  «*f  the  t>*uika  waa  left  to  the  maOHgemeut  of  ita  oSieera,  witho  .t  ve<-y  m  tfc 
ioterferener  by  the  Stat^t  or  the  Bmk  Supetmteoilenr.  Ihd  TiearU'j  DepHrtm^nl 
and  old  banka  w»*te  oo  ipel  ed  by  the  ezi^eoHei  of  th'f  war  to  ai:a.»end  Bweeie  iihyiufi  li 
in  Dis^'emb^r,  1861  more  than  two  moothn  prior  to  the  iahOts  of  any  It'ga  -tender  n*  t  a; 
an  J  we  o  oat«etum  to  the  po  nt  of  departure  b«*f«>re  the  naiion-il  fini  cea  •  r  I  a  ainfl^ 
can  be  plm ed  on  a  aouo-f  ami  reliable  bia  a.  A-*  '^o  n  as  ap-rie  payment-  are  reauuied 
it  wout  I  nu  dfiubt  be  aafe  an  I  better  for  the  go  •nt>'y  to  throw  open  the  bank  law  hi  d 
make  it  frt^e  to  all.  Banka  w  u'd  tienbe  ectabliahel  where  the  bufinea**  ware 
of  the  country  wmjld  r«'qui  e  th«^m.  ^ecu  e  the  •  t  lb  d'ler  perfec  ly,  rt-qnire  p  ouipt 
radaiDpiiuii  in  coin,  wiih  ample  leaourcea  f  .r  iha*.  pu>po<»e,  an*!  the  req  liremen'a  t  ^ 
boai  eai  would  tike  care  of  the  rest.  But  when  wil«  ap«:ctt*  paymenta  be  raurrecif 
Thia  ia  a  d  ffi  *u  t  queetion  to  ahawer.  If  the  Supreme  Court  abouhl  decMle  the 
la^al-trntler  cl«aae  unoonatitnttona  in  rende  in*'  j  ifi(rment  0).oo  the  Kentue^y  caae, 
which  h«a  leo'i  ariroed  and  aubmitted,  it  W'Uld  co>i<pel  a  return  to  aperie  pH)uieHte 
at  an  tarty  d  ^y.  But  if  no  aueb  dectalon  ia  made,  it  ia  very  unoerta  n  WLcn  reaump* 
tion  will  taae  place. 

There  is  one  point  to  which  we  reafrf*t  thai  the  ConventiAn  did  nol  pty 
more  attention.  We  refer  to  the  ii>ad«  qiiiM^y  of  the  le;j:a}tend>  r  re^erre^ 
Too  roach  of  the  reserve  is  locked  up  by  our  bankit  in  the  form  of  interest, 
bearing;  oerlifioates,  and  tO)  little  in  the  avail»«ble  gr«'enbacka.  It  is  nol 
improbable  ttiSt  if  the  banks  had  held  more  greet ibacka,  and  had  b^en 
fonltied  by  a  more  available  reserve,  the  drain  of  siity  millions  of  ourreooj 


40  IMMIGRATIOV.  W^h 

to  t^e  S'Qth  would  not  have  produced  the  monetary  (roubitftof  Maidi 
and  April,  nor  would  the  locking  up  of  thirty  miliiuns  of  carreacr  in  the 
month  of  M^y  have  brought  on  the  stringency  under  which  the  Icaa 
market  ia  still  tremulous  and  suflforing.  Insteud  of  reproaching  Mr.  Boot- 
well  for  thp  recent  financial  apa^ms,  not  a  few  persons  are  already  potat- 
iog  to  this  condition  ol  the  l^bk  reserves  as  fcnfficient  cause  in  tbsis 
monetary  di^turbitoees* 


~>*"irTrw>.ri  ^.j-wiori  i  ig~r'>r"w~»"  in»~w~>f>or"»<~w 


A  Liverpool  despatch  of  the  loth  inst^  says  there  aeema  to  bsao 
diminution  of  the  tide  of  emigraticn  to  Americ;*,  over  six  tbou^nd  rocs, 
women  and  cliildren  having  left  that  port  alone  for  New  York  d  trin^  sh« 
week.  It  appiars  from  the  returns  of  the  em'giation  aj:'ii*8st  Lmt- 
pool,  that,  in  the  month  of  May,  there  aaled  from  that  port  37  »hipi 
with  26,312  passsergers,  of  whom  7,7r6  were  Eng'ish,  679  Scotch,  4.237 
Ifish,  and  13,600  of  other  nationalities,  chiefly  Germans;  of  the  «hoU 
number,  21,195  passe  gers  were  for  the  United  Sutes  ard  th^  r  maunder 
for  Caniida  ;  the  total  emigration  for  Uie  month  was  27,080  against  19,74S 
in  Mar,  1868.  Turning  to- the  the  sUtatics  of  Cattle  Garden,  we  6&d 
that  the  whole  iiumberol  immigrant  passengers  landed  here  from  January 
1  to  June  1<,  was  101,339,  against  76,116  for  the  same  months  of  Ist 
year,  shoving  an  iocreaae  for  that  peiiod  of  about  30  per  cent.  For  ihe 
first  Feven  days  of  the  present  montii,  the  ni  m'>er  l«nded  at  Castle  Gardes 
was  10  978.  The  returns  at  this  poit  are  not  made  up  in  sucU  a  way  u 
to  ind  cate  the  nationality  of  the  i  n migrants  any  further  than  may  be 
inferred  from  the  portn  from  which  ihey  railed,  aa  given  in  the  follo«ir./; 
stktement  showing  the  numl  er  sailing  for  the  United  Statea  from  the 
prinfipal  foiegn  po  ti  fiom  Janunry  1  to  M.«y  31  : 

I4'eip«<ol •»•••..••..  1  1  89L»a 

toi*don St  S,:^ 

QAmwixr »  VH 

H«nrns       tS  lUa 

Bemen  6iJ  Itri 

aniwerp 8  n 

(X>p<rnh  «geii S  ICI 

Toa MO  "iM^ 

One  notable  feature  in  the  arrivals  is  the  increase  in  thennmberof 

Eii^hfth  emigrnnt^  and  the  falling  off  in  the  Irish,  the  nun;ber  of  the  Utter 

leaving  Liverpool  in  lh<»  month  of  May  beng  little  more  than  half  that 

of  the  former.     Ttie  Gtrmaa  element  pr  po  iderates  very  largw*ly.    Of 

the  total  ariivaU,  about  o*ie-tbird  sail  dircit  tiom  German  porta;  while  of 

the  departute^  from  Lverptol  nearly  one-half  are  Germans.    Takias;  tiie 

month  of  M*«y  as  a  la  is  of  comparison,  we  find  ih  it  the  Germans  cun^ti* 

tute  itbout  60  |ier  cei  t  of  the  whole.    Ihe  praent  influx  difien  from  tJ^st 

of  lormer  years  in  that  it  is  not  a  drain  of  the  pauper  population  of 


I8C9]  ucMioiuTioir.  41 

Europe.  The  arrivals  consiet  rerj  largely  of  the  better  dasa  of  emiiraDt9, 
includirg  well  trained  mechanics  and  operatives,  and  agriculinrists  pos- 
9e$sed  €»r  moderate  means.  Tlie  latter  cUss  generally  proceed  directly 
to  the  West  to  settle  upon  lands  and  cultivate  them  with  thnr  own 
thrift  and  labor,  while  the  former  seek  employment  in  our  workshops  and 
factories. 

It  U  not  improbable  that  this  extraordinary  immigration  has  been 
simulated  by  the  naturalization  treatiea  lately  concluded  between  the 
United  States  and  European  Governments.  The  main  cause,  however,  is 
to  be  found  in  the  superior  inducernents  to  labor  offered  by  this  country. 
The  recent  wars  :n  Europe  have  produced  a  prot<'acted  deiires>*>ion  of 
industry,  ^hile  they  have  increased  the  burthens  of  the  people.  The 
military  system  of  Germany  has  been  felt  to  be  a  severe  tax  upon  the  ser- 
vices and  li\e»evenof  the  woi king  classes,  from  which  they  are  natu- 
rally desirous  to  efc<)pe  And,  althou^^h  we  too  have  h^d  a  devH^tating 
war,  yet  .hd  absence  of  subsequent  suffering  and  the  rapid  recuperation 
from  its  effects,  have  been  a  wonder  to  foreign  nations  improvincr  our 
credit  im*l  exhibiting  us  before  the  world  as  a  people  who  beiter  than 
any  other  can  endure  the  greatest  of  national  disasters.  With  all  the 
e^ils  of  the  war,  it  has  yet  served  to  show  in  a  striking  light  our  stn-ngth, 
oar  coheMOD,  and  our  recu^<erative  force  ;  and  in  this  aspect,  our  G  )vern- 
meni  cotuniands  greater  confidence  than  the  masses  ol  Europe  are  disposed 
to  aua  d  to  thfir  own  systems. 

Tiie^e  accessions  of  foreign  population  are  what  the  country  peculiarly 
neerls.  The  great  economic  requihite  of  the  times  is  an  enlarged  produo 
tion,  with  a  moderate  consumption.  The  immigrant  is  eiiiinently  a 
woiker.  Fir  a  time,  at  least,  he  produces  more  cheaply  than  our  old 
hand^  and  in  accordance  with  his  thrifly  training,  he  consumes  lera  than 
he  j-r  die*  s ;  and  in  this  way  a  freer  influx  of  foreign  population  con- 
triluten  to  the  recuperation  of  our  stocks  of  products  and  the  cheapening 
of  prio«^s.  It  may  be  safely  estimated  that  the  arcesMons  of  Euiopeans, 
from  ihe  beiiinning  of  the  war  to  this  time,  far  more  than  compensaie  for 
the  l>«s  of  hiboters  in  the  North  attendant  upon  the  war.  In  this  fact 
ne  may  tii>d  an  explanation  of  the  circumstance  that  the  afier-suffi-ring  of 
the  great  strug.  le  has  been  so  much  less  than  we  have  been  led  to  expect 
from  thp  experience  of  other  countries.  Tt>e  movement  is  a  national 
eSbrt  at  the  equalizition  of  the  la''or  markets  of  the  Old  World  and  the 
New.  IiH  ('ffect  in  Europe  will  bo  to  relieve  the  ranks  of  labor  of  the 
turjjii*,  whi<'l)  produces  little  and  depresi^es the  masses;  while,  here, it  will 
^ujtply  a  deficiency  of  labor  which  is  injuring  the  community  at  largo  and 
not  eveu  benefiting  the  operative  classes  themselves. 


42  Tni  aoLO  MOVtMtffr.  [/«t|, 

TIE  GOLD  ItTBIERT. 

T'>e  f>|iecie  m^v<».ment  at  New  York,  »ince  January  Ist,  pfpsenU  •om« 
irregtilaritic'B  wliich  require  to  be  onderatood  by  those  inWreftteJ  in  iIm 
coufi^e  of  the  gohl  premium.  It  una  verj  generallj  ex|>6<:ted  lh«t,owisg 
to  tlie  wLle  (li^|»Ali  y  between  the  imporlB  hqJ  the  experts  (»f  the  <oaatrj, 
we  shoultl  have  to  i^hip  durinir  the  spring  and  summer  months  a  Isife 
amount  of  gold  to  Earope,  Tiiis  expected  result,  however,  has  nut  beea 
realiz  d.  The  nassai^e  of  the  Public  Credit  bill  aoJ  the  tulm^qnent  eDf(;>ros« 
meut  of  ihe  Sinking  Fund  provi>ion8  gAve  ao  impetus  to  the  Kuropesa 
demnnd  r«»r  our  bo.  ds.  which  resulted  io  our  sendinsr  out  during  March* 
April  and  May  a  very  nnusuHlIy  large  amount  of  hecuritie%  tht^reby  fwnng 
the  remitta  cef  au  rresponding  value  io  the  precious  me  a*s.  Hal  it 
not  bdi-n  fjr  ihcse  large  exports  of  hoods,  there  can  be  liule  dou'>t  that 
we  shou'd  ha^e  shippe  I  fully  as  inu  h  specie  as  last  year,  when,  for  the 
fir^t  five  month*,  tl  e  total  reache.l  l-'H ,279,000.  But  ina  ^ad  of  this  we 
have  (XfK)rted,  d  iring  thone  moiithsi,  ti>is  season  only  gi:),!  IP^'^O ).  or#24,- 
1^)3,000  leAS  than  in  1868,  and  H,755,000  Jess  than  in  1867,  as  will 
appear  fioin  the  following  comparison  : 

xzpoBTs  or  sracni  at  ha-w  tobk  pbom  jax.  1  to  sat  81. 

im fiMiim 

1808 «,m« 

Ujt 1.,U1,OJO 

Tiie  export  of  bonds  even  went  so  fjr  as  to  ro  uaMy  torn  he  How  of 

gold  at  one  |>eriod  in  tiiis  direciion;  so  that  while  our  shipmento  of  s^p^c^ 

were  unusually  li^ht,  we   received,  for  a   time,  1  eavy   remittMnces  odnii 

iron    Eurof>e.     During  the   first  five  months  of  the  year  |9,99T,OC0 of 

groid  aid  silver  ariived  here,  against  $3  200,(0)  f  »r  tie  same  time  iu  1868 

ftiid  11,057,000  in  1867,  as  the  following  figures  will  sh  >w  : 

IMPJBTS  or  iVBOIl  AT  VSW  TOBK  rBOM  IkM,  1  TO  HAT  SI. 

ij^. ...•»•« f<itn.(M 

issa «.*<i'« 

IttWf i,o«.«o 

Under  this  exce)  tioiial    movem^^nt,  howd/er,  it  is  to  be  remHiked  ihM 

we  had  no  extra  supply  of  ji^old  upon  the  market,  and   the   premium  his 

ranged  little,  if  at  all,  below  the   usual  average  for  t*iis  season  during  Isto 

years.    Oii  the  let  of  June,  the  specie  in  the  bankn   wa^  only  tlO,000 

above  the  amount  at  the  ta  ne  period  of  last  y^fr,  and  was  nearly  %«3,000»- 

000  Ifss  than  on  January  l&t;  while  the  aiuonnt  of  coin  ht^ld  on  d^'posit 

in  the  TrehB.ny  was  $3,696,(00  less  on  June    Ist  than    on  Jan-iary  1st 

The   following  statements  show  rejipt'cuvely  the  coin  in  the  bauks  aod  on 

deposit  in  the  Treasury  on  January  14  and  Ja:ie  IH: 

SPBCn  IN  BBW  TOBK  BAMU  JABUABT  1  AJTO  JUn  1. 

ISM.  lara  r«i 

Jarnnry  1 $50,7i  .«D        tli,'?»4.on0       ftM^J* 

jBbo  1 n,«7i,oou       i:,t«i,ooo      iiiugtf 


18d0]  turn  ooLD  MoymurT*  49  > 

con  cBStmoAiai  •vifVAXsna  jaxvabt  t  amd  icir*  1. 

1  (J».  TwB,  1F67. 

Jinnary  1...., ^ f^T.OAOt)       t?0.10l  001       $M4V'<» 

Jana  i , S(a,lfM>UU)  «>:I..8,.U0  17,8.4,000 

The  fsiet  oftbe  supplj  of  gold  on  the  market  not  having  been  augmeritedy 
under  the  exceptional  oour^^e  of  the  exports  and  import.^  of  the  (.recioiia 
metal!',  above  noted,  appetrs  to  be  susceptible  of  e<isj  ezplnnation. 
(1).  The  receipts  of  treasufe  from  Oalifornm  have  been  uiiuHually  light. 
Duri  g  the  tive  months  under  review  we  have  received,  via  A*^)  tin  wall, 
$7,406,000  ie^s  than  in  1868  and  12,651  000  ht^a  than  iti  lb()7,  which 
was  A  i^rriod  of  veiy  light  nceipta.  To  whatever  cause  this  falling  off  in 
the  sup  ly  of  new  gold  is  to  be  attributed,  it  mubt  be  Mccfpted  hs  an 
impor'^i  t  ta<-t  in  the  curient  movement,  modifying  the  effect  which  must 
otherwise  1  ave  resulted  from  tl  e  unusual  course  of  the  foreign  siiipments 
and  arrivals.  The  following  figuies  s  ow  the  arrivHU  of  C<ilifuriiia  gold, 
by  Bleame",  for  the  first  five  months  of  t'  e  ye  ir : 

ftnaiFTS  OT  CM,'.TtOVKTA  TBVAIUHB  at  HXW  TtfRX   mo«  t  K.  TO  M\T  91. 

19W 17.789,00 

18        r,,l  VKM) 

la*i.... lo,44U,OwO 

(2).  The  unu  ually  heavy  p^ymentfr  on  account  of  cuso.iis  liavH  leitded 
to  keep  down  tii<9  uiarket  aopi'ly.  The  receipts  frodi  dutis  at  thi^  purt, 
for  the  &ve  inoiiths.  were  |7,28.>,000  in  exce^'S  of  last  yenr  anl  $-3^427,000 
over  tho^e  of  1^67,  aa  will  be  seen  from  the  following  i-o  i  pari-^on  : 

CU8T01M  I>UT:X8  PAID  AT  X&W  TOBK  mOM  JAX.  1  "tO  MAT  31. 

iw     , f5\ovr,ooo 

1  «)    ..  .   4'3.7iv.«fcO 

i»r 5',ttto.uuo 

(3).  A  i^tiU  more  important  explanation  is  found  in  the  ciriMim  t  noe 
tia'  t  '  Tca^ury  faUs  of  coin,  up  to  June  1st,  fell  inatt^riany  <ih(irt  of 
those  of  prev  •  H  years.  T.irou^h  the  courtesy  of  the  As  in.  nt  Tre  i  u  er 
we  have  l>«eii  enabled  to  ascertain  the  precipe  amuutit  of  the  snld^  ai  the 
8ub1  ex  ur\,  f  .nn  which  it  appears  that  the  amount  coiniiiir  on  the  mar- 
ket fio:n  tbi<  rtoiirce,  from  January  1  to  May  81,  wa^i  less  th'a  \ear  than 
last  by  «18,248,0.0  and  les^  than  in  1867  by  $22,309  000  The  t'ol:ow. 
log  figur  p,  coiiij'iled  f  om  Tea^ury  doctinen'p,  sinw  he  G  e'^nincnt 
iales  of  (/•  1 1  Ht  New  York  for  the  fiist  five  months  of  t.  e  ynais  1869, 
1868  and  1867: 

•ALU     F  O  TBB   UtMt  O0U>  AT  HrW  TOBX  FB  M  JAKUABT  1  T  >  JUlia  1. 
MS* 5,;l»-.()ftJ 

w«' *n  IW.OOO 

Wliile,  howeve^  the  Treasury  has  sold  $18,248,000  less  than  lasi  year, 
it  has  ,  aid  <  utin  coin  interent,  at  this  point,  $8,523,0^0  mote  than  then  ; 
10  Uut  rt  ally  the  Mipply  coming  out  of  the  Treanury  is   only  ^9,725  000 

*11i«ro Won na rcoeipi9  ol  gold  oYar.snd  bj  railroad  from  etn  Ffanclaojbel.re  June. 


41  TBM  a)M>  XOVBMBMr*  [/«^ 

less  tlian  io  T868.    The  interest  pajments  <rf  the  Tremafr,  tof  the  fivi 
months,  compare  as  ^oIIowa  :^ 

rATiojiTs  or  oo'v  nrrnnT  at  vhi  saw  tobk  irB-TSXAmrxT  vbom  .*av  l  r«  stT  SL 

Xse $aA\UV% 

19Bi >«.»w.W 

iMl ».1«.M 

With  locreis^d  receipts  from  castrms  and  fa  laced  8^?«s  of  o  in,  anJ 
with  this  gain  o.  I7  partly  ocaaterba'cnced  )  7  the  en 'a  g*^  pajruHjitts  of 
intfrest,  the  Treaf^nry  has,  of  course,  augmented  lU  at  >ck  uf  gold.  O.i  tbc 
let  of  June,  he  amount  of  gold  owned  by  the  Government  was  $12.1 10^ 
000  greater  thau  at  the  saiLe  date  of  18G8  and  $1,394,000  m<»r«  u  an  is 
1807,  as  will  be  seen  from  the  subjoined  btatemea^i  ia  which  we  give  also 
the  amount  owntd  oa  January  lai : 

SOLD  OWJIiP  BT  «OTmaniBKT  ox  JAMVAWr  1  AW  juim  1. 

1889.  1^8.  in. 

J>r«A"rt $71.7x7.un0         $  Kv>A,UO        $«1S»&fl8l 

Ja  e  1 OI,<MO,UQ0  ^UQ,  Oa         U,I>MU 

From  the  foie^oing  det  i  ^,  we  are  able  to  draw  a  co.np  «riH>n  <  f  the 
course  of  t^upply  and  wi  h  .rawals  at  this  city  for  the  Ith  iiiui.tlstof 
Dece:«sit\  oraiiting  certain  minor  items  of  uhich  there  is  no  avM  I  bie  rrc>r<L 
The.  supj  ly  coming  upon  the  market  from  various  source  s,  cuuiptres  tlm: 

■om.T  ov  ooia  ams  buixmw  at  nw  tobk  vacm  g^w  1  to  max  SI. 

1  A».  28r,  1817. 

ImpoH« •»  f9,0rr»,««0  tK*        0  '  $h^Jiijm 

from  Oitl  for  ii ;,io  ,U  U  li,tu5,(iU0  ]U.4t|.(4* 

Tr  «  ar>  1u  ere-t - 4t,<':ii0l  8->.M8.  Ml  k?,i  a,«0 

TrMur^Me* 7,(iOU,uuO  '    k6,:^t».ial  ».JH,«nO 

Tbt'lmipply |«0.«8O,OUO  $.;,b)«!,aO  imoam 

It  il  n*  a  >peai8  that  h)  supply  rece  ve  1  from  January  1  to  May  31  is 
tll,l5i,000  le»Bthan  in  18(58  ao  i  1(1,697,000  less  than  in  1^07.  On  the 
other  ham),  the  witlidrawalsi,  through  exporuiiion  and  payu^-nt  of  dntiss, 
have  been  (16,878,000  below  1.^63,  and  11,328,000  b«rlu^  1  i(i7,M  will 
be  seen  from  the  follo«'iiig  st  tt.'mMit : 

WITiOHUWAIA  Q9  WTE  IB  VftOX  KBW  TOBK  MABBBT  VSOJI  JAW.  1  tO  MAT  SI. 

}sn*.  ISSJ.  13R. . 

Bzpor'i $lSi1K,00  $  ".,  ..,.4»  $^.^.U•• 

Fsi    fwrCn  tOBU 6&U67.UU0  47  r.iikC  6i,  ^klM 

Toti $fle,i7«.oju  $du,iai,itJ0  |t,<M> 

Wit!i  til  1)2.000  ilecreane  in  the  >-U)»p'j  and  tl6,c'«8  0C0  Ksi  *i\k' 
drawn,  there  »hou)d  be  on  the  Ul  of  Junn  $5  726  0)0  mi>r«  gud  on  ths 
market  than  at  the  sa*ne  period  of  last  ye  r ;  and,  <  ons  *^  ent  y,  «•*  fin<i 
an  increase  of  $3,042,000  in  the  auiouui  of  Coin  Certidca.ei  ou  el  a  aj 
on  Jun.'  1st. 

What  may  be  the  course  of  onr  exports  of  apecia  for  the  neit  ew 
week)«,  we  do  n  t  at  present  propo^  to  cMii-ider.  It  will  be  seen  bov* 
ever,  from  a  survey  of  ibe  foregoing  stMtisilic*,  th  it  the  s  ipply,  bot  in  the 
Treasury  «nd  on  the  market,  to  meet  the  exp  irt  rcquiremeiiti  d««s  not 
vary  maleri«lly  from  that  of  the  la:»t  two  years. 


1869]  m.  BOUTWKLL  AID  TB«  MOHET  MARVgT.  45 

KB.  BODTWELL  AND  THE  lONET  lARIET 

There  can  be  no  question  that  Mr.  B  )ulwreir3  policy  of  abeorbincr  cur- 
rency into  the  Treasury  during  tlie  dull  Fuminer  season,  with  a  view  to 
restore  tbnt  currency  to  the  channels  fo  business  when  the  active  f^JI  trade 
beuii  8,  iji  founded  on  a  sound  basis  of  experience  and  of  enlightened  prin- 
ciple.   Iti;i  well   known   that   at  t'lis    tiin.^  of  the  year  le>s  currency  is 
nee'ied  to  do  the  business  of  the  Country   than  in  the  spring  and  fall* 
Under  the  old  State  banking  systam  the  banks  issued  new  notes  to  meet 
tlie  incrensed  demand  for  currency  in  active  seasons  of  the  Tear,  and  these 
noteit,  when  they  had  done  their  work  and  were  no  longer  wanted,  returned 
to  the  is8uer<>  for  redemption.     Thus  a  return-current  was  kept  U|>,  which 
^ave  eljst'city  to  the  currency  anJ  made  it  expansive  to  the  wants  of  our 
intemn!   tra  le,  expanding  and  contracting  as  the  necessity  for  currency 
became  less  or  more.    Under  the  National  banking  system  no  such  bene 
fjciai  elasiiri^y  prevails.     The  banks  are  allowed  to  h^ue  just  so  much 
currency,  and  no  more.     It  is  for  the  gain  of  each  of  these  iustituiions  to 
keep  out  as  large  an  amount  of  notes  as  it  is  permitted  to  i>sne.    The 
government  endorsement  of  these  bank  note^,  and  their  availability  for 
payments  into  ^he  Treasury  all  over  the  country,  gives  them  a  creiiit  far 
beyond  thai  of  the  old  bank  notes,  and  prevents  their  coming  h  >rne  for 
redemption  at  the  issuing  banks.   The  consequence  is  obvious.     Tha  bank 
note  cireu'ation  is  kept  at  its  maximum  throughout  every  part  o(  trie  year. 
Wtjetaer  more  or  less  currency  m  wanted  fur  the  purpoises  ot  business,  it 
makes  no  difference  to  the  banks.     They  is^sue  as  much  curiency  as  the 
law  allows;  and   what  notes  they  is-^ue  are  easily  kept   aOjat.     They 
either  do  not  come  home  at  all,  or  if  so  they  are  easily  put  out  again  to 
take  their  place  in  the  channels  of  the  circulation.     We  have  repeatedly 
discussed  this  defect  in  the  National  banking  syUem,  and,  with  a  view  to 
give  the  proper  elasticity  to  our  currency,  has   urged  on  Congress  the 
indispensable  need  of  a  rigid  system  of  reJemption  in  New  York.     These 
warnings  have  not  been  heeded  ;  and  until  the  remedy  is  applied  by  Congress 
oar  currency  will  be  defic'ent  in  elasticity,  and   the  money  market  in 
consequence  cannot  work  smoothly,  but  will  be  jerky  and  unsettled,  and 
will  be  liable  to  severe  and  frequent  spasms,  especially  at  certain  critical 
seasons  of  the  year.    Failing  this  proper^  and  wholesome  me:ins  of  giving 
elastidty  to  the  currency,  the  next  best  course  is  for  the  government  to 
buy  it  up  and  lock  it  safely  in  the  Treasury  vaults  in  the  summer  m  mths, 
when  it  is  not  required,  with  a  view  to  set  it  free  again  when  the  proper 
time  of  liberation  arrives  in  the  more  aaive  season  of  tie  fall  trade.    In 
Tiew  of  these  facts,  we  repeat  that  Mr.  Boutwell's  policy  of  hoarding  up 
Md  imprisoning  the  superfluous  currency  in  the  Tre..sury  is  founded  in 
wis Jom,  and  i^  approved  by  an  enlightened  regard  to  the  exigencies  o^  the 
financial  ntuation. 


46  m.  B091WIU.  AVB  TBI  KOVIT  XABStT.        [/d^, 

Still,  ndmitHng  and  dtfendiDg  a«  wo  do  the  geoefal  wisdom  of  Mr, 
Boatweira  rooihod  fur  giving  soine  moaaore  of  elasticity  to  the  earreacj, 
we  have  expressed  our  doabta  whether  he  has  not  been  going  rather  too 
fiuit  OAing  to  the  defect! ve»  imperfect  waj  in  whiob  the  daily  bdmav 
in  the  Sub-Treasarj  are  reported  we  cannot  tell  exactly  how  mnch  c«. 
rency  has  been  a^«orbed  and  locked  up  in  the  government  Taalts  mom 
the  beginning  of  May ,  but  it  is  estimated  at  twenty-six  to  thirty  milliooi. 
Cons'd  ring  the  unprecedented  severity  of  the  spasm  which  invaded  the 
money  market  la.4t  M  ireh  and  April,  the  rapidity  of  ibis  contraction  of  the 
oirculation«  after  so  short  an  interval  for  recovery,  ia  attended  by  aouasl 
peril. 

It  is  said  that  as  we  require  fifty  millions  less  of  carrency  in  the  sanmar 
than  in  the  «pring  and  fall  of  the  year,  ao  harai  bat  much  good  wiQ 
Jesuit  from  the  prooeas  of  depletion  and  the  withdrawal  or'  thirty  ro  llioas 
of  currency  ia  really  leas  of  contraction  than  is  required,  and  the  other 
twenty  millions  must  alaobe  withdrawn  firom  the  current  of  the  circalstioo 
before  the  level  will  be  brought  low  enough  for  the  summer  asssos. 
To  this  argument  there  ar^  two  answers.  First,  all  hafty,  suooen 
on^inges  m  the  volume  of  the  circulation  are  mischievous  But  the  ooa- 
traction  of  the  circulation  is  by  far  the  most  mischievoos  if  it  be  done  sad- 
denly,  too  swiftly  or  at  the  wrong  time.  Ill-timed  contraiUion  of  the  car- 
rency imposes  a  tax  on  the  people  which  is  of  the  most  intolerable,  mia  iiisr- 
oua  and  ureleaa  character.  It  brioga  nothing  into  the  Treaaury,  but  il 
impoveriahea  the  pe'>ple,  paralyses  the  productive  powera  of  the  nstios, 
and,  like  the  explo  led  medical  theory  of  blood  letting,  it  weakens  and  draioi 
off  the  life  of  the  body  politic  under  pretence  of  relievin;;  it  of  the  inoonra- 
nience  of  plethora.  To  contract  the  currency  without  injuring  busioeas  ii 
one  of  the  mo»t  delictte  and  difficult  of  financial  problems.  We  canook 
wonder,  therefore,  if  the  existing  atringency  ia  attrib'iU^d  in  part  to  Mr. 
BootwelPs  recent  locking  up  of  currency  in  the  Treasury. 

But,  rooreoevr  tliere  is  a  second  point  to  be  considered.  The  cotton 
«nd  tobacco  crops  of  the  Southern  States  are  raised  under  new  cooditiooSi 
and  the  business  requires  more  currency  than  ever  before.  It  is  beliarsd 
that  of  the  currency  which  has  gone  South  daring  the  last  nine  raoeths 
thirty  millions  at  least  have  not  and  will  not  come  back.  If  thia  be  lo, 
it  ia  equivalent  to  a  contraction  of  thirty  millions  in  the  carrency  of  oar 
Northern  States,  and  should  make  Ur.  Bont^ell  watchful  and  wary  hov 
he  goes  on  too  far  or  too  fast  with  his  present  policy.  We  presame  it  ii 
from  i^ome  such  reason  that  the  purchases  of  bonds  thia  week  have  bees 
increa«ed  and  adjo<»ted  to  the  saWa  of  gold,  so  that  there  will  be  tor  tiie 
rest  of  thi»  month  very  little  further  accumulation  of  carrency  in  the  vaolta 
of  ih(>  TrPKsurv.  From  thia  relaxation  we  may  anticipate  a  msaaora  of 
tinaly  relief  to  the  money  market 


1869]  lUUBOAO  SlRNINOa.  .  47 

KAILROJD  EIRNIKGSFOR  lAY  AND  FOR  THE  PITE  MONTHS  SISCE  JANUAEYK 

The  returns  of  moothlj  fiarnJDga  for  May  on  tlie  prineipHl  rHilroads, 
we  an?  now  able  to  give  complete,  and  it  is  f^ratif)  ing  to  n>>tice  the  very 
sati^actory  condition  of  buslDesa  tliey  exhibit,  every  roftd  showing  a  <  on- 
side  ab-e  increase  over  the  same  month  of  1868,  with  ttie  single  excep- 
tion of  Western  Uiiion,  which  ia  slightly  Ulow  last  }ear. 

The  grain  traffic  of  the  West  during  the  latter  part  of  May  was  greatly 
in  excess  of  hist  year,  and  contributed  largely  to  the  inereatse  in  freight 
earnings.  The  results  of  the  same  movement  are  also  obseivable  in  the 
earnings  reported  fur  the  first  two  weeka  of  tbepresent  month,  which 
iarorely  ixcued  the  totals  for  the  correspondin  w^'eks  ot  1868,  en  s^iveral 
of  the  Western  roads.  We  regret  to  notice  that  the  Foit  Wayne  com- 
pany Laa  al  ered  its  nst  al  form  for  reporting  the  monthly  earnings,  by 
omitting  the  statement  of  exptn  ea  and  net  eart logs  hen  tufure  given* 
This  company  haa  hitherto  been  an  illustrious  exce)'tion  in  furni  hing 
the  statement  refened  to,  and  thus  giving  the  only  complete  and  reliable 
information  as  t  >  traffic  that  was  published  by  any  road. 

The  earnings  for  May  are  as  follows : 

UASLBOAD  XAKKZIICS  VOB  MAT. 

•ChlcBgoA  ^^ton S^M'stsM 

Chicago  A  Nor'bwetcm ...l,Vti9,93l 

tChlra^'O,  ttock  I  1  iHlAk^diO. 41'«,  01 

ilUiMol»CJ-*utal  ..• ••  6' 5,' 46 

Urtotu  A    'nclDiiatl 111.0^0 

Kichigtu  Central 408,6  H 

Hleliigiin  BiiVtbern 4i6,7;)l 

Milw«Qk  eAt'.  Paal .  46l),3S7 

Ohio  &  M  ea  S9ii>pi S1nOH9 

PiKsbare.  Kc.  Wurne  A  CMrago    Wi^^-Vi^ 

Bt.LoBi#,  Alton  &  Tirra  Hatue 167,  9' 

TQledo,Wabiaii  A  Wesiem.... ••• 8U,529 

Western  Ualun 68,478 

TotA' $5,53^,618  |4,97fi,7^    $5C6,530       $1,680 

The  tot}]  earnings  f^r  the  first  five  months  of  the  present  and  previous 
years  have  been  as  fuUowa : 

SABKDIM  TBOM  JAUUART  1  TO   Jinri  1. 

1869.  18*a  Tnr.  Dea, 

Ch1e«goAA1tn $1,714,911 

Chi  ago  «  ^ort'iwe9t4>ni 0,^1  •,(»4S 

Chicatcu,  K  ck  la  aud  A  Padlle I,8j'i,l09 

lllnoia    enn' 8,*99,.se9 

li«r  etta  A  Cine  unati 614.^a 

VUhUanC  ntral 1,911,749 

KicUgan  s»oaii  eri). 91l6,lW 

HjlwaakeASt    Paal a,»6,«69 

Ohio  AH  Mibt-ippi 1,(160,96.1       1.166  9U7  ....     $ns,tfM 

nua.  Fo  I  Wnvn  '  ^  Chicago SfSU*,'.^       

ft.  Looii*.  «JtO' ATerts  Bute 7(»,aM 

1oled>,Waba  hA  Wwatem I,5M.394 

^^ttttam  Uiiiaa X4c,8ia 

7olal ^ $;tft.6901M  $».8S9,80a     $3,875,786    $116,01^ 

*4tl  milaa  In  «869,  agalsst  389  In  188$. 

t  H umb  r  of  mi  ea  open  o  ntlAua  Ij  laorssilii^   Over  100  mllas  more  were  workad  in  Var. 
M^tba  lo  thtf  Kama  moaUk^onasa 


18fi8. 

Inc. 

Dee. 

$^^843 

$i2,:ei4 

1,«6,7  6 

63.1M3 

fttS,  9 

i:o.i09 

6;v,ft6l 

84,4  6 

96,4  6 

is.nsu 

86»,ft«S 

89  Oil 

SMi.soa 

4  .91 

4Hh4\i 

U*y>15 

3D1  r.l9 

14,  90 

tii6.MJ0 

40,681 

1>I0,646 

36  859 

8<0  5i9 

5^,oaj 

7U,  68 

•  «  •  • 

$1*C90 

i8'a 

Inr. 

$1,3011,813 

f614,139 

4,«83.»'8 

6VH.K.9 

1.480,078 

t«4'i,o  6 

S,»»ft9.40l 

4*«',1BS 

47fi,«bl 

»7  Ml 

l,760.2Hi 

Vil  474 

1,98   ^l» 

1^..  07 

9,(h}6,J  67 

r.0,401 

1.166  9U7 

•  •  •  • 

8,lS4,9a6 

1  8.8 '6 

69  jm 

6f<5TU 

1,849  0  >1 

177,8- .8 

3  5,710 

8,103 

48 


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Oar  import!  t'  is  year  have  been  on  a  large  senile,  and  coMtderably  in  ezcfss  of  pre 
T10Q8  year*.  The  return  pnblished  tbie  ireek  i elating  to  the  eompated  real  Talae  of 
Ui«  goode  imported,  embrace!  a  period  of  only  two  ixiootb!.  The  foUoiring  fignrea 
ihow,  however,  that  the  r»\w  of  the  import!  m  February  waa  £2,600,000  more  than 
io  the  corresponding  month  laat  year,  while  in  the  two  montha  it  ahow!  an  Increaaa 
of  £4,640,000 : 

COKFUnD  miAL  TALUI  OF  PBIHCIPAL  IMTOaT!. 

1867  1M8  1869* 

inn^Tj.^ £1(M6»,755  £^,*S\m  £ll,4»»i4«^ 

Ftbioary 15,87M'Z5  16,4i44.l40  1S,148,7M 

Tea] •. 1^40.U80  HM8,68«  9»,C4a,S04 

At  regar  a  cotton,  the  oompoted  real  ralue  in  the  two  mrnthe  waa  £6,702,265 
against  £4.685,848  and  £6,261,889;  of  wheat,  £2,644,8  8,  agaioat  £8,866,8  8,  and 
£3,520,085 ;  of  Indian  corn,  £l,029,8i7,a'?ainat  £^96,724,  and  £866,647  ;  and  of  floor 
£S86.4S2.  agaioat  £688,<^65  in  1868,  and  £906,681  io  18d7. 

The  follow iDg  are  the  leading  partiealars  with  ragard  to  cotton : 

ncjpomis  IN  THaii  MONTHa. 

Prom—  1B67.  IWW.  \9IK9, 

UDlediUea. ^ cwt  9*)0,401  2,681.83r)  1,117,849 

»nz\l - lli,T78  161,178  171,984 

Turkey • 83,«8  4.<1T  17,-40 

&;  pi    4M,"05  8ti,HSl  310,816 

laetlndos ' 147,^80  SJ8.03I  828.796 

Coin*        ..  ..  ^ 51,011  ....  .... 

V^ther  eoantriea 64.747  82«6^8  43,696 

Totd 1,815,219        1^480^6  2,018,tai 

ixroaiB  IN  TBan  months. 

To-                                                                                           l»r.  1B8<«.  1889. 

ftiiMa '..cwt.         60,819  87219  68.045 

B*i  e Towns I»7.1i8  J8S.8H5  Ifl6,jyr8 

Holi»Dd ©  .iWt  l47.tW  141,407 

i^beriointriCA. ••••  201,276  8  H.ni^  189,867 

Total 142,1^  742,786  618,797 

Of  atton  mannfactore!  the  following  aro  the  export! : 

IN  MAaCH. 

J«m lb'.      l),m4,5S0         16A7,JV»8         18.681,64$ 

Puxe  HOG'S yani".   2lO,«rtH,4''l       249,«0»4.Ti       aia,H5«,»41 

T^TMa lbs.         6b9,d84  4v8,UM  511,971 

IN  TBaSI  M0NTB8. 

l»ni lbs.     88.801,8'^        80,6^082         8!),781,8S2 

Jwcegoods. yjrds.  621,«»7«,7«9       78  ,«V4a       67l,itU984 

T»w*5 ^ jb*.       1,598,288  l,W,l4i  1.4&l,045 

As  rpgarc!  onr  export!  of  oottoo  piece  gdode  in  the  flrat  three  montha  of  the  preeen| 
JHr,  there  is  a  dirLisntion.  aa  compared  with  U68,  of  2,6^  0,000yaid!  in  tho!e  to 
Hollind;  2,89<V00  yarde  to  Portugal  760,0  0  yard^  to  lilyria,  Croatia  and  Dal- 
BAtta,  8.80001*0  yarde  to  Tnrkey,  5.880,00»  yards  to  Syria  and  P«le!«ioe,  2,800,000 
Jtrdt  tr  E.ypt^  7,800,0  0  yarda  to  the  foreiitn  Weet  Indies,  6,1 00,0i>0  yar  ato  Mexicoi 
MOO.OOO  yard!  to  New  Grenada,  1.700,000  y«rd!  to  the  Argentine  C  nfederatioD, 
U.?i>o,  00  yards  to  China  and  Hong  Kmg,  760,000  yards  to  Japan  l,880.tH»0  yarda 
toJAftj,700,0()0  yardpto  the  Philippine  Mands,  1,4^0,0  0  yards  to  the  British 
^t%x  lrdi«8,  and  of  50,40  ,000  yards  to  Britiah  lodii.     On  the  o  her  hand  there 

ut  increwe  of  1. 200,000  yards  in  the  shipments  to  Australia,  1,200,000  yarda  to 
^  Hao!!  TowL!,  8;400,0do  >ard!  to  France*  6,400,000  yarda  to  Italy,  11,  00,000 


nnd  dli-oantt..... 


Olborsionk'.  tH)ad(andmi<t:'<j 
Dne  tr  .m  spiwo'.'  ■  ivdiwmliig  :<■, 
Duef  o:nD>C<ii->allunKi  ...  . 
l>Q«ff"iD  othBrbtuksiin'  hani' 
~  R  ■1wt>U.niri)Ur«  Bud  aiUn 

Cmrent  eEp>n>n  

PnmdliDI  :. 

Cbei^k-and    Ihar  e»<illea»  ... 

BUi<-lDU'an«l  !»]■.■ 

Bllluf  .thi-Tbi... 

Fnc  ioiiU  canaicr 

L"Kai  ttji'der  n*  0* 

CoDQpoand  int<Ta»i  n'^tea....  .. 

Taiaa  per  caot  conUutea 

ToOJ 


Uu£vld< 


i^..^* 


rss 


1860]  TRADX   OV   GREAT  BRiTAIH.  ST- 

Oar  imports  t*  is  year  bsve  been  oo  a  large  senle,  and  eonsiderably  in  ezeess  of  pre 
▼ioas  years.  The  return  published  this  week  telating  to  the  eompated  real  Talae  of 
the  goode  imported,  embracee  a  period  of  only  two  months.  The  foUoiring  fignrea 
allow,  however,  that  the  ▼viae  of  the  imports  in  February  was  £2,600,000  more  than 
in  the  corresponding  month  last  year,  while  in  the  two  montha  it  ehowa  an  increase 
of  £4,640,000 : 

COXFUTID  aSAL  TALUS  OF  PaiaotPAL  IMTOaTS. 

1867.  IMS.  1869. 

J^ann^ry £1IU6»,'JB5  £^.48»,<W  £li,4n'106^ 

Pchiaary 19,871,175  16,4!44.l40  1S,148,7M 

Toal ^ 25,L40.tfaO  HM8,68«  9»,C4a,S04 

As  regar  s  cotton,  the  competed  real  Tslue  in  the  two  mrnths  was  £6,702,265 
agsinst  £4.685,848  and  £6,261.889;  of  wheat,  £2.644,8  8,  agaiost  £8,866,8  8,  and 
£2,620,086 ;  of  fndian  corn,  £1,0 29,8 4 7,  against  £-^96,724,  and  £866,647  ;  and  of  floor 
£S86,482.  against  £688,S65  in  1868,  snd  £406,681  in  18d7. 

The  fuUowmg  are  the  leading  particnlars  with  regard  to  cotton : 

IMPOaTB  IN  THaiB  MONTHS. 

From—  1P6T.  IfW.  t8fl9, 

Unied^Ues ..»«. cwt  909,409  1,681.830  1,117,819 

Unzn - lli,T78  161,178  171,984 

Tnrkey  .' 8JJ,*:5  4.IIT  17,  40 

Bs  pt    4M,'W5  8«i,HSl  310,816 

BaBtlndOfl 147,^80  2i8.08l  828.796 

Ooli*a        ........  2,011  ...  .... 

iithttr  countries 64.747  82»6''>S  43,696 

Tota 1,815,219        '~8,48U,8C6  2,018,822 

ixpoaxB  IN  TBan  vonths. 

To—                                                                                        186^.  Ifl6««.  1889. 

Pra»pia '..cwt.        60.819  87210  66.045 

Vatae  Towns I»7.1i3  98S.8»>6  186,3n8 

HolliiDd 9  ,WT  l47.tM)  l-n,4OT 

Other  Loantrie«. .••••  201,215  8  »,03«  16tt,S07 

ToUl ~M2,1^  742,786  618,m 

Of  octtoo  mannfactares  the  following  aro  the  exports : 

IN  MAaCH. 

Tarn lb«.     1^864,5^0        16»V7,r8        18.68%,54S 

piece  goo's yardo.   210,1  KlM^l       249,«)94.'n       2i8,H54,94? 

Thnaa .  lbs.         6b8,d64  4;,8,U68  511,971 

IN  TBaSI  MONTHS. 

irain. lbs.     88,801.6'^        60,6^1062         8R,781,8S2 

Plecesooda. yjrJs.  6«1,47H,7M0       TS  .liv^O       671,1)11,964 

Thie^d - ^Jb4       1,698,268  1,127,141  l,4tU,045 

As  regarcs  oor  exports  of  cotton  piece  goods  in  the  first  three  montha  of  the  presen| 
jear,  there  is  a  diiiiisntion,  as  compared  with  U68,  of  2,6<  0,000 y aids  in  those  to 
HuUind;  2,89<V00  yards  to  Portugal  760,0  0  yard<  to  Illyria,  Croatia  and  Dal- 
matla,  8.800 0«  0  yarda  to  Turkey,  6.880.00)  yards  to  Syria  and  Pales' ioe,  2,800,000 
^ards  tr>  E^ypt^  7,800,0  0  yarda  to  the  foreign  West  Indies,  6,l00,0(i0  yar  sto  Mexico* 
8,800,000  ysrds  to  New  OrenaHa*  1.700,000  y<irds  to  the  Argentine  C  nfederation, 
14,200,  00  yards  to  China  and  Hong  Kmg, 760,000  yards  to  Japsn.  l,830,tMtO  yards 
to  Java,  1,700,000  yardp  to  the  Philippine  Inlands,  1,4^0,0  0  yards  to  the  British 
West   irdi«s,  and  of  60,40  ,000  yards  to  British  lodii.    On  the  o  her  hand  there 

an  iDcreiM  of  1. 200,000  yards  in  the  shipments  to  Australia,  1,200,0(iO  yurda  to 
the  Hanae  TowLS,  8,400,000  >ards  to  France,  8,400,000  yards  to  Italy,  11,  00,000 


t8  TRADE   Of  •EBAT  BRITilir*  [/t%, 

jMrdt  to  the  Uoited  SUtcf ,  aed  9,f  or,000  y»rd«  to  BnA  Tbe  fiiUovirg  KOfmit 
•kows  the  ezteot  of  oor  ezportt  to  ih9  United  SUtet  in  Um  fint  tbree  iMBib  «( 
the  present  and  last  two  yean : 


*|V8  IMk 

Alkall.cwt .     «».0''l        •«.««  4«,« 

floor  &  ale  gala 6.»-9          «W»:  M» 

Coals.  t"ii»        U,\M         tJt,t»  lt,« 

Cotton  M^fUFAoruais: 

Piece    oo<i8,>d* ill44,81«   ».*S0Oi6  44TliM 

Thitad,  lb 4«l,<4«        4«*,^!  «6,W 

Eaith  1.  ware  and  Porctfliiln  pkn W.«01         il.fl8S  ^.M 

Haberdai>h  ryan    Mil  lo^-iy  yalite ^ £514,t)M        Itti^fl  aUM 

Hamdw.bb  AND^UTLt  t:  _ 

Kni?  a  tuika,  Ac,  THloe £m,1»       £4TJ»I  £«.« 

Anvi  f,  %l  e»,  Ac  .  ▼alue. «••««          l»a«  «^ 

Manaractorea  of  German  feilver,  valoe. l«5»Vi4         ti,«90  lfi.W 

Lm.i  M%  LF40iuBfta—  ^^ 

Peceg,Mvla,y*r(la S8,44^0!0   S0.77l.444  S,taMa 

Threi3,lbi • 400.WJ        SWJM  «.« 

1UTAI4—  ^ 

Iron-PIff,  Ac, tons »,IM  B.87  ^Tl 

Bar.  Ac,  tona 18,Hff  §W«  IWg 

Kailroad,  tOQS a»,«)l  l^UaT  14SJ»; 

Caatinj^.  torn* 1«8  «Jl  ^ 

Uoopi».  aheuta  aod  boiler  platea  tonr.  ..  4,401  t,fi«0  W 

Wroaghl.  rona *t.«0  »■»  *»]• 

Steel  Ui)ivrua.ht,iooa ft.»0  t,Wl  Jg 

Copper,  wr.  ujjht,  cwtt i^lT  ««Jl  ffl 

I^pifttona    l,«4e  t.*tt  ,VjJ 

Tin  ulaua.cwta 114.»4«  14t.«0l  4IMII 

OUaeed.gaila 8K8«4  W,  14  W 

Salt,  tOQs     S:l,«45  44,4fc0  41^ 

SnJL  MANUFACTUBSa—  _^  .«,-, 

Broad  piece  xuoHa,  Ac.,  yaida 100,905  UO,M  :R.£ 

Handkerchief^.  ecarlV. Ac, docoDS «0S  Bi  ^J" 

Blbbonai.feikouly.  Ibn  M,  »  0.aM  Jk^ 

Other  articles  oi  Bit*k  .  nly,  Talae £m.00t  Win  J." 

MUinafuf'au.ix<dwihoUiisr  matemla, £i4,:i4  lU^T^A  ».« 

Spirits.  British,  gal  a 7,0n  l«.'*tO  lig 

WooLlbs....         8,8i4  JS^  •fl.W 

WOOUBN  AND  WOiUlTBO  HANnVAOTUBM—  •  .  ,-«. 

Cloth.yaida T. t0Vt,0n  1^10.^01  1,  »g 

Carpels  and  drargeta.  jirda l,ft«»'l  lAs  44  1,^5 

ShawK  rags.  Ac,  I  nmber 5^040  8i,06l  .    »2 

Worsted  Sioffa,  yaida 10,1SflL'flft  10L0ft^4«i  U,mm 

The  following  retn  o  abows  the  prieea  of  cereal  prcnlaee  at  tbree  periodam  tlia  or 
reot  season,  ▼!< :  when  new  produce  eommeiiced  to  airive  freely  at  markirt,  vbn 
Spring  corn  was  at  its  bigLest  point,  and,  tasty  daring  the  preaent  we»k.  Th  -  down- 
ward moTtmeot  in  mheat  baa  been  unioterrnpted,  and  it  is  believed  that,  as  it  vM 
fnlly  :  nticipited,  do  losses  have  been  incam  d,  so  much  caution  bavir<g  been  tzetCMd 
tbroojbout  tl.e  seaso".  Barley  and  oats,  bowi>ver,  advanced  to  a  high  ^loint  by  ite 
oommencf  mei  t  of  NoTember,  but  from  that  period  a  semewbait  ra)  id  <lowDWtri 
movement  set  in,  and  the  result  has  been  tiat  prices  bare  dedined  (as  in  lbs  csm 
of  foreign  f  ed'ng  barley)  as  much  as  18^.  ptr  qaartir,  or  aboat  8'»  per  cent.  Bcaai 
have  decline  J  from  1  a.  to  16s.;  peas,  88  to  bs.;  and  Indian  corn  8s.  to  Ok  p« 
quarter: 

Aag   8,  18n.  KoT.  «,  1«W8.  Hay  I,  ^ 

Whest:                                                 P    qaa  t«r.  Perqnartr.  lerqMjw- 

gagllshred...  (WCrs  0M.  6»<»64a.  ^^^^ 

Qkli^h  whie 6^9*t:«.  M^^a.  4644». 

Poieig    r-d OhS'H.  i\f^H:  4*f4li. 

Foreign  ^  hlt.^ OOSfita.  545oM.  «'«3ai 

rT< 


Barley : 

Sngll  b  malting 84^t4s.  8Ta'Ms.  t 

Bntfi  shy  indin^    80^1  s.  8&IO8O4.  ^ 

Voreig  i  grUaing 8io8<s.  OO^ata.  S*< 

Oat- : 

Xnglahfed »9m*.  »^«8«. 

foieignfeed Ot^BOdB.  8»«s00b.  U#<^*- 


1869] 


TRADB  07  OftXAT  BBITAIH* 


(^0 


Boe^^h 44®.'W8. 

lorcitTD , 41^^488. 

English 45^^88. 

^"fiirn 41^188. 

IndidnOoro: 

ytt^ fl>®«88. 

Tcllow. 8{(®126. 

Fl'U  :                                                    Jer?80«> 
Tuwoniade. 50^M8. 

VoD-  fy 42@58«. 

^reOiJi  6i»J46i8. 

AmericM Jir9a«6». 

Doriof;  the  past  thre*  moot  ha  of  ib«  caireot  year  onr  importo  of  wheat  into  iha 
United  Kingd  m  were  1,400,0.0 o>^t.  kse  than  they  were  in  the  oorreapondin '  period 
io  1868.  The  more  important  feature  in  the  retnro  is  the  diminntion  o(  about  1»  0  J,000 
evt.  io  oor  receipts  from  Egypt.  Tie  following  are  the  chief  narticuUr^  of  our  im" 
p  rta  of  wheat  and  flour  in  the  firct  three  months  of  the  present  and  last  two  yeais : 


4M)S«S. 

41^188. 

r*^488. 
8.^888. 

44^488. 

8rR»45s. 
88^398. 

85(^388. 

snaaos. 

FerSfOS) 
43^178. 
8^4  8. 
48^148. 

Per<80lb 

88^438. 

S«  (^%8. 
8:^^108. 

Pe-  birreL 
85^808. 

Perbtrral. 
S8iaS78. 

1886. 

RQ'*'* ewt.    t,T88,8l8 

I'rasrU WMa 

trace S84,078 

I'iuu,  Croatia  and  Dalmatla  Turkey,  Molda^  la 

^&Aaiu.hia ...        677,918 

f^P' 10,064 

luiudsutea 608,944 

Total, iodadiog other  coontiles... «,0il,838 

VLOua. 

^i^s' Towns 180,061 

Praice 816,188 

UitcdStates 69,580 

Total.  lacladlng  other  coantrief. 886,188 

Annexed  is  a  slatemf  nt  showing  the  imprrts  and 
ud  froin  tlie  Uiiited  Kingdum,  from  September  1 


1887. 

8,875,478 

6)1,14) 

11.128 

1,868,148 
1,«4  ,'«8 
1,868.110 

1^41)6,581 


159806 
18I5>38 
90:, 708 


1888. 
9,bH6,698 
915  476 
94,800 

671,486 

900,186 

1,V>7 1,866 

1^036,016 


171,8T0 

47»,866 

iu;,60i 


778,387  1,1(4,983 

exports  of  wheat  and  flour,  into 
po  ihp  cloee  of  last  we<sk : 


WHEAT. 


Imports.- 


, Bxports.- 

1867-8.  186P-4>. 

665,610  184,686 


From—  J8n7-8.  18  8-9. 

sept.  L  to  May  1 ewt.  94,816,660       19,873,/8l 

PLOUK. 

S«ptUoHay97 9,866.118         9,768,788  88,966  98,148 

ADn<^z«'i  is  an  approximate  ita'eroentof  the  imports  of  cereal  produce  into  the 
United  Kingdom  in  April  an  iia  lour  months.  This  year's  Apr  1  statement  embraces 
>  periud  of  28  days  ;   but  that  of  the  previous  throe  years,  80  days: 

ISP  >BT8  la  ▲PHIL. 


18«5. 
Jl»*n ewt  l,6i,K4> 

«rey )>6<.874 

gat  54:16  0 

£«• 94,719 

f««n« ft«,8«l 

lodinn  core. 7  6,t09 

'Ww 48:^,8)8 


1869. 

8,94<),018 
63'>,l-4 
16  ,6Si 

7<,4  1 
114,4H4 
975,'>14 
946,^ 


yi»'*«t 7,l?««,60d 

^cy },6«,4  5 

l*»* 20«,887 

f«n« 119,h«5 

inmHQcom 4,mi.676 

*l«»r       , 9,444,4.8 


ixTO'  Ts  tir  rovB  xon  bs. 

9.9J1,870 
9,798,840 
9,^1,3  8 
88V.498 
860,»ill 
9.98  ,401 
1,18j,468 


1867. 
8,09^^'.60 
606,*283 
74  V  1^7 
83,009 
145,9.)i 
89  ',970 
948.86i 


11,660,990 
1,798,481 
1,99 1,996 
959,310 
691  96^) 
8,191,667 
2,081,7J5 


1868. 
1,8  rt,7il 
480,697 
419,157 
8t,4l6 
1  6,969 
986,098 
804,878 


8,899,769 
4,t^.lH 
1,61^488 
39^919 
78),388 
4,^6S,)^ 
l,44il,169 


60 


TRADS   07   GREAT  BRITAIN. 


[M. 


Bostnees  r^uring  (be  iircteot  week  id  Ibe  maDofactoring  c^btrieta  hM  bcco  rx^ramely 
q«]iet.  There  bap,  however,  been  a  fair  amouDt  of  buying  oo  ibe  part  of  tbe  Uoitod 
Sutea;  bu',  with  f*'W  ezoeptiooa,  the  greMeat  catttioo  baa  been  ohMrved,  aad  bit 
few  putcha>es  lta?e  been  made  in  ezceae  of  actual  rcquirementa.  Go.ton  n  lover  m 
price,  owins;  to  the  angmented  ehipmenta  from  Ameriran  and  ladian  port?;  but  it  a 
atated  that  tbe  eh  pmenta  dnring  May  and  June  will  be  very  email.  Tbe  Indi 
demand  it  very  '^oiel,  and  at  Idaucheeter,  although  there  baa  been  no  prmnrt  to  nB, 
boyf  ta  have  refrained  from  operating  largtly,  eze<  pt  at  aome  conceaainn  io  prieciea 
the  part  of  |  rodueers. 

Tbe  ^ollowioi;  return  ibowa  the  extern,  of  our  ezporta  of  the  prtncipU  rotten,  liaca, 
•ilk,  and  wool  n  goods  to  tbe  Uuited  dtatea  and  Fraoee  daring  the  firei  three  mootki 
of  tbe  preeeut  and  last  two  yean : 


TO  THS  UHITin  BTATM. 

lanr. 

Cotton  piece  goods.. yds.  44,1  *4,M9 

Cotton  yarn  lbs.       4<i«.H46 

Linen  pi  ce  t^oods yds.  S9.440010 

Linen  thrt-ad lbs.      4UU.)<01 

Silk  p  ece  goods y  s.       IMt,9JS 

Wooleocloiii y<)s.    Vt^Vtt  6 

Ciirpef B  an')  drnxx^ts. ..    yds.    1,5<^ff<l 

Worsted  staffs : yds.  lfl,1t8j8S 

Total W,5iirM 

vo  rxjLVoa. 

Cotton  ysm ^  lbs.  Mi.itt 

Cotton  pi ec  •  goods yd«.  18,lVM.7Vr 

Cotton  th  ead. lb*.  <4.»W 

lanen  }arn llts.  Mi87tt 

Linen  pece  Koods       .....  yds,  1,450.590 

Silk  ptec  goods yin.  611 

Woolen  yirn M.l.lbs  4St.A.38 

Woolenc'otn  yd*.  S,0^l,A  8 

Carpets  and  drnggets ^^^ >d4.  7{.9)S 

Worsted  sioiEs yda.  «^  7,&4a 

Tofal... »I,;I5&,S19 


1888. 
88,78U,<«8 

48%7*i 

»,m,444 

fl40.ir'4 

1  0,  m 

l,6!8.66t 

8B<V.544 

29,l«t,44i) 


3W. 
4t.71l.Stt 

»,99I.NI 


77,684,058        TiiA^iA 


l,fl«l,741 

8,10  %488 

61,0-8 

644.008 

9l0  9i5 

8.468 

1,M»,78T 

681,7  f4 

94,0  (f 

4,4t9,40l 


Mi«4 

l',Ml,f«5 
K7i: 

OitSI* 
1>MK 

4.«Ma 


17.9J7,&79  ll,8n,UI 


The  ptblic  pales  of  Colonial  wool  were  commenced  thia  evening,  Tbe  arrivaU  eoai- 
priae  41,s«8  bales  from  New  8ontb  WaIps  ;  I  <,«07,  Victor'a;  8,076,  Van  Diemsa*^ 
Land;  2' ,858,  Adeaide;  21,9!18,  New  Zealand;  S,82(\  Swan  BiTer«  and  tip» 
bales  from'  tbe  Cape  of  Oood  Hope.  Tbe  biddings  have  ruled  heavy.  Ao»trsbui 
wool  has.  in  son  e  instances,  declined  ^1.  and  Cape  ^^Id.  per  ib.  ae  compan^ 
with  Blareh  laat.    The  foreign  demand  ia  only  moderate. 

Our  imports  of  wool  thia  year  have  been  very  large,  mora  eepedally  Irnm  Aottnlis. 
They  were  as  iuUowa  dnring  the  firat  tbree  niootha  of  tbe  pccaent  and  l^t  two 


1887. 

FromConinent lbs.       i,>4<9,i69 

Cape       ....   6471.080 

Bnrvh  India 1,5«1.'48 

An^tr  lia 1  ,ha  ,581 

Other  CO viUtrics •. ',1*81,868 


18^ 
1.410.705 
(,0:<7.»« 
8.. 88,1  8 
11.  5t.488 
S,5M,4i8 


18B». 

s,^k4,if: 
1.  mjaa 

843«.% 
848 ,« 


Total 88,616.180 

—while  the  ezporta  have  been  aa  under : 

O  LOHIAL. 

18W. 

To  HiQ9e  Tows lbs.  89.).743 

BeUinn , 1,07.891 

Kri.i.e 6,751,'fa5 

U.i  td  ?*tate* H0.878 

Otbercoauirles... 4i  ,05*1 


98,6eiV5lM        61,53,<M 


1F8S. 
l,8lM7t 
4,7>0,«« 
9,071  «7I 

».4tl 
88 ',881 


»,ni,4M 
9.min 

5S.14I 

1,7  7.:ft 


Tola ; lU,lit,UT        ia^0X7,«S        10,7I1,« 


1869] 


THB  ANKI7AL  SAVINGB   OT  XNGLAHD.  tl 


l,4d9,9ai 

2fSU,9U 

1808. 

87  .f>«? 

1,  87.9^7 

8n-.Si 

843.145 

*      1809. 
8M,B01 

8ai,:m 

948,871 
S&6,840 

»     »          -                                                                            1887.  1868.  2860. 

To  Hanse  Towns lbs.  916,448  lH,i.«l 

H^t'tiav 8lH,iud  Vo9,i)90  9»4,1/^ 

Fmiicc  589461  7.),*T8  46,0>7 

UnliedStato* "118,(175  821,  68  1,«}«,981 

Oiher  countries 18J,.170  80,043  107,768 

ToUfl ^08,8^7 

BOXB  QKoirv. 

1B67 

To  HaQ«e  Towns lbs.  615,063 

l^eltfum So&,4irt 

Fran  e S7tJ,891 

United 'tares 8,314 

Other  Goontrtes S81,731 

Total 1,449,945  9,651,371  9,^08,100 

A*  regnrda  the  export*  of  wooleo  goods,  the  foUowiog  are  the  particulftrs  for  the 

three  moothi : 

1867.  1868.  1869. 

Tama,  lbs 8,1H5,H65  lI.<H8f>29  9,0r,3JO 

Ctoih,vds 8.400,929  6.101,674  6,;50,A:3 

Flannla,yd8 1,8«),067  M4U,«^  1,467,719 

Blankets.ydi 75U,588  714,2>«  l,«;J7«8i 

Blaiketii  g and  baizes,  yda 487.766  %  »^im  8-itt,9U 

CarpeU  aiiU  drnggets  9,019,405  1,6>9,81»  9,1H4,.'N» 

Shawli*,  rafrs.  &c..  nam lI],«dS  llis,945  17m,8&8 

Woistedsinlb,ydi 64,77^,458  51,463,811  63,4.9,824 


THE  iUffUAL  SAYIirGS  OF  eholahp. 

A  corraspoDdeat  of  the  Londoo  JEeamomUt  wiitee  as  follows  oo  Ih  s  nuVject : 

We  have  all  seen  statements  cf  the  aonual  savings  of  the  Uuited  Kingdom, 
which  b aye  been  ▼arioosly  estimated  at  from  160  to  20')  millioon  £  duTn  t  •  nil, 
as  I  have  lately  seen  estimated  as  the  result  of  the  year  1868 ;  but  I  do  not  ffmember 
any  oodcibo  statement^of  figures  showing  how  such  estimaUs  are  made  out.  1  subtnit 
you  such  a  statement  herewith.  I  know  that  all  calcnlatioos  of  this  nature  muat 
be  extremely  ragoe,  and  cannot  be  relied  on  for  any  approximation  to  accuracy.  I 
»h(>uld  be  very  glad  if  yon  or  any  of  your  crrespondents,  however,  would  point  out 
any  material  errors  which  they  may  think  I  have  made,  or  give  me  aoy  better  mode 
of  forming  an  estimate  from  time  to  time  of  the  general  well'doing  of  the  country 
as  exhibited  by  eoch  aser  med  facts. . 

The  income  on  wcich  income  tax  is  raiaed  Is  av  out    £370,000.000 

**  *•  "  '*  notraiBtrdisaesam  dtobeabODtihosime       879,100.000 

Total  Income  Of  the  United  KlDgdom £74O,000,0OJ 

xxpnmiTiTFS. 

On  f  od.  at  an  avenu^e  of  4b  for  each  person  per  week— tbe  cost 

Hf  f«tt  ling  In  nnioDS  is  about  an  averafre  of  88  6d  per  head  per 

week-8o,i«),t00  st  49  per  head  per  wwk,  or  £  10  Iffs  p^r  year,  ts    £319,00?,000 
GoT<>rnmeDt  a'>d  locni  direct  taxes,  all  indirect  taxes  bemsr  paia  in 

the  price    f  the  jjoois ••  40,OCO,000 

Faol  tnd  llcht  at  £3  per  limlly  per  aonnm.    I  aesume  that  there  

»re  6.5  0,000  fdmlllc* W.Vn^Oinnn  16,500,000 

Locomoti  II.  ner  ra  Ivrav jBi7,000,tHw 

/^Ldiooihe  ways  ........... 6,UOl',000-     99,001000 

B«er.  spirts,  an  Jwloe r 50,000.000 

'•obdcco.... 8,tJ0U.0.i0 

noun*)  rinia*£:ti  per  lioise. ?^»?!!JvSS} 

Clo.hngai£?perWd -•  / ;,   ••  «O,O00.000 

Sund.y  exnet.dUU'^  not  enumerated  in  any  of  ihe  above  Items,  ^  ,^  ,^ 

any  £1  per  be<ki  per  annum »),000,00(>-   69%600,0CM) 

Sorplua  of  ineoaie  over  expendltaxe 140,500,000 


62  RlItnOAD  JTEUn.  [/«^, 

RAILROAD  ITEMS. 

MAHinTA  AND  Ci!«ciiifATi  RATLKOAD.^The  earoiiigt  of  thb  road  for  te  year  esd- 
ing  December  81,  ISiS,  wer«  as  fallows: 

F'om*a0«  n^eri |^,fn# 

•*    freiKhfc ♦. 8MUiyi 

"     ma'l *i.7«744 

•*     ekpree* • 41'1>19 

^     te.egraph « 7.7j6« 

Hetearuings $!».«•  17 

CoropA  ed  with  the  previooi  year  the  groet  earriin(r«  show  an  increase  of  |7,S7S  4' ; 
with  an  ir  create  in  ezpenaes  of  |1 86,911  76-- maki.ig  a  deereaac  in  oai  caroio^i  of 
$  1  S8,HS9  81.     1  he  report  says : 

Th«*  route  from  8t.  UmU  via  the  Ohio  and  Mie^iBeippi  and  Marietta  and  Cindnnti 
and  Bil  im-ire  and  hi)  roaJa  i$  ih$  $horle9t  to  ik€  i^mboad,  ^nd  the  obW  oht.uk 
to  a  Lrge  aud  recnaneratiye  t  affie  is  the  bre^k  of  bulk  now  reqoired  at  CtacioMsti 

OBNiaAL  KBUAaKS. 

The  difli  nifties  canted  by  the  embarrassed  fiisncial  eondition  which  has  to  a  gmtrr 
or  less  « zbetit  atteo<l»'d  the  eompaoy  doriog  its  history,  hAve  to  a  ociDsiderBbte  degree 
been  overciiroe.  Tie  marhinery  and  eqnipnient  ar^  in  excellent  enn«liilon, sad  viil 
ptobably  ctimpartf  f:ivorably  with  thoee  or  any  rna  t  in  Ohio.  The  iaerease  in  rollinf; 
pow«r,  by  r«-buildinj;  the  four  engioes,  heretofore  irfeired  te^  will  etisble  the  oooh 
pany  to  tiausport  prodi^tiy  any  amount  of  traffic  which  can  be  r«:asonablj  ezpesttd 
at  present. 


Gf^NBSAL  Bala.nob  Shbkt,  December  81, 1888. 


Dr. 

RAllroada^dfqnfpminf $ 

Union    al  roa .  pQrcha«e: 

In  ca-h $IS6  944  'ft 

'nhonrl* fO,  71  91— 

HUlvborii*  A  CinciimUi  KaUroad 

fircha's: 
nc«-b $19,«mi 

In  shares  1«       ..  .t69.60    Pl^ 
Port*iionth  Br *nch porch «re(S. 

aud  H  V.  H.  K ) 

CoDStr^ction— Man  line... 

ClnM  et 

"  d<<c  ut on  bends  . 

^nspfnssa'seoiint.... 

R'lal  estate 

8tock«a)d  bo^do    

Itieland  mite  U*s  on  hand.... 

B  lis  re  elrio'e 

TJncoiIeci' '•  rw  nn«« 

Coi.  and  H  •>  kinjf  Val  ej  BL  K, 

tnhficrliiiion,  

Pr«.tt  ai.d  loss 


tl,B8\896  19 
177,916  80 

l,8-»,796  93 

F(n,0  0  00 

1^740,81^  6H 

I«t61,n0  90 

1,194,861  SU 

168,000  00 

60O,tf8  77 

69,065  9« 

105,6^9  89 

7,999  84 

49,960  6a 

Jm.(DO,00 
tn4,87o  66 


Or. 

Fir#tpref.«'sies*scnp $81tl.T!94i 

i<«e  nd       '*          *^  4.46s,^«<iS 

Common  shares  A  scrip. 3.0.9  i79  9 

_  $14,6  0,86  9i 

Flr«t  mortgage  (sterling)  bonds 

isrned 1,0^0  uU)  UU 

First  m  T  gaste  (corre  cy)  bouds 

l««nd I;4l9.9e9» 

First  mt>rt«;a;<e  (cirreivy)  scrip         4.MI  ai 

Socunnmjrt  ajirebmds SJSX^OO'O* 

8  *II.  V  il.lib.mds 300,0«0' 

Bal  fnaore  loan  o  Ua  on  R.  R..        80^  00 

PHjrall $81,406  87 

BIbsp  7<ibleAcash 

bcrrow«d 841,168  18 

Dlvld'd  dneonpre 

f    en'^sfhire* 7,488  90 

iBdiTidaalaccoonto..  0»,«i80  87—      471,TD  17 


$Sl,4M.9.»aB 


$»1.484,969  80 


I 


Rbpobt  ovtbb  Gboboia  Railboad  and  Bankino  CoxTAirr  Ibr  the  fiscal  year  eoday 
March  81, 1869: 

BiRNoras. 

From  passenger  r  c-*ipt« $891 789  78 

Fromf  vlxht  recelptu 761,804  V6 

Vkommailiecelpts 81,0^01 


GroisesniiDgs....  1,104,6I{1  01 


oRBATiNe  xxnomra. 

For  coildQetrg  traosport'n .' $144.90  31 

For  miitif»  power BB,80  4f 

For  ma iLt  nance  of  way.. 248Lfl9)< 

For  maluieiianee  of  cars 5t9b'79J 

619.48  0 

Ssni.oteri9aWrs6rd.es....  .«$9M0" 


1869] 


RAILROAD  1TB1I8. 


ez 


FenPw1nfrVcoirotlTeefig:lrM(lDOto'dinflr    ^epilrp) |n\fl7it  16 

Niw  car- and  nbui  dinv  eats  (ootordlMHryrei'Mln).. 58fK4fi  68 

New  r  i:  Md    ron.  ibnlieDiio  ppikek  (0T«r  Acdabo«e  ordinary  repal  e>  4-3.(K)U  (lO 

iiesnsid  olsfiug  new  tack,  etc • 6,7^81 

U)>or  **  •»  ^^ ^HK»  68 

(ioY.rDment  tax  on  groat  receipta , 8,87^  97-lTB«858  69 

Netlncome v.h^ 1852.803  07 


Oat  of  wh'ch  hu  been  paid : 

For  4  new  locomo'  *e  eogln**! 40,008  S> 

f  or  new  ireiKkt  koutt  andofice  kt 

Atl  ntt 80,91783 

For  bal  nee  on  new  round  hoaso  at 

AtUnta 4,408  68 


For  balance  paid  to  a^ocbboldera  In 
diYidexuia 468,86877 

862,80317 


Tbeeeresolta  eomparo  with  aimilar  ones  for  the  fiscal  jear  ending  March  Slat 
I868,as  follow*: 

Receipt« • $],008,7S3  0ff-$l,104.59!  04    Iiic  $100,797  88 

ix;>V8  end  pajmcnu,  ordinary  and  eattaordlnary      8lb,012  4fr-    830,167X7  luc.     17,2.^18 

IncrOMO  net  lAceme $83,543  OO* 

It  ie  B'>fflewhat  remarkable  that,  wh He  the  laat  annnal  report  made  fbr  every  raiL 
roA  -  cmmectiiig  with,  or  in  the  neighborhood  of  the  Oeorgia  Railr  ad,  shows  a  diminU' 
tion  ill  i^roM  receipta,  the  groea  receipta  of  your  road  have  iocreaeed  orer  one 
humlrt-d  thousand  dollars. 

(Xb^r  roads  have  suffered  id  the  fallinsr  off  in  their  gross  ^'eceipts  as  follows :  Quo  « 
?ia  Ciu\rA  lUilroal,  $212,226  57;  South  Western  Railroad,  $36,403  91;  Western 
tn<)  Atlat.tic  Railroal,  $329,684  1I;  M<icon  and  Western  Rdilroad,  $88,972  86; 
Ailtinta  and  West  Point  Raihfoad,  $40,406  78,  and  the  South  Carolina  Railroad, 
ti).044  61. 

The  i(  cn'ase  id  travel  amounts  to  $88,424  60,  in  about  equal  pmportion,  the  local, 
wiih  the  throu|jrh,  showing,  I  thio^,  a  more  prosperous  condition  of  our  \e'  pie. 

TherevtDoe  from  freight  has  io  reased  $67,H72  87  OTfr  the  earnings  of  that 
defMrtment  for  the  last  year.  This  increase  is  derived  meetly  from  through  hu^iuess, 
redttlUng  mainly  from  our  improved  oonnectioLs  and  arran^ementa  with  the  West, 
aod  the  i  created  fa  iUti<w  for  the  transit  of  freight  through  the  city  of  Augusta. 

CoDtleused  ate'emfnt  of  the  c  nditioo  of  the  Oeorgia  Railroad  aod  Banking  Cum- 
psny,  00  the  Slat  of  March,  1869,  the  end  of  the  financial  year  : 


TS. 

The  rosd  and  Ito  outfit $4,1^6,000  00 

Kale«a'e       114,698  66 

linking  honre  and  lot 86,000  OJ 

K0341  expen^ea  A  expendltnrta 

fortherr«d 882,090  10 

Ir.cUleoule  penses  and  salaries  l^USW 

lQtere#to<.  bo  d« 89,638  68 

D .  8.  uz  on  uivldend  No.  49  and 

GO  16.89680 

Tax  paid  State  of   »  rga 1,161  &i 

M.Wt  if  ot  band  for  niaid 77,5!  6  44 

i^tock  of  vaiSoofi  roads 1,097,887  VO 

Bond'  ot  vaiiona  roada 7<<,400  00 

DiMon  ted  notes. 8.6i'9  U 

AMeeiment  on  a  ock 962  50 

lfif]i^ceiTable 16,664  10 

Daebyotbercot^onrtCna 11,170   0 

Kotesofb*nkalaAogaaU 19^K99  98 

Cub  .r. 129,7.6  26 

tl,aH,986  61 


CB. 

Capital  Stock f  4,l.'tf,ooo  o<> 

Profltand  ln»B ^ 718.S3^^  68 

Income  lron«  Rallrrad 1,067.282  99 

TraDsportatfoit  of  tbe  mails  ....  31,819  51 
Interest,  disconnt  and  premium 

account 17.451  61 

Dl^'ldends  on  stocks SI.wk.i  58 

Bentacconnt ....  l.£t»K  66 

*  onds  of  tbis  c  mpany 5^2,(  do  00 

Divldt-nda  nnpald 43,68^  37 

Due  to  other  corporattons  aod 

agenta. 80897  48 

U.  8.  tax  retained  on  conpons 

paW ],22ff69 

Peposlta 3.*if>9  26 

CircalatLon ^, 110.996  08- 

$6,066,988  «> 


'^  RATLROAD  ITBM8»  [f^h 

Thi  Eavsas  Pactfio  Boajk— Th«  raport  for  1869  farnishM  the  IblUivug:  T¥< 
oompaoy  ba«  440  25.100  miU-B  in  opfrailiD,  with  depot  propeitj,  improvemeoti and 
cqaipmehis  ibereon.  At  the  begiLointc  of  ihe  y«ar  th«t  main  line  wa«  to  opentixi  to 
old  Cayote  etatioo,  885  miles  iroui  State  liae.  June  14,  tbe  road  vu  op«bed  to 
MoDomeot,  885  milfo;  and  August  16  was  ofeoed  to  Sberidao,  Dear  tbe  tforth  Fo^ 
of  the  Smokey  Hill,  4o6  milee>. 

In  oper«tion  Jmouary  1,  IStiS  : 

State  line  t » Coyote ,..« .nike.  S8 

lj*'aV(DW>>rthKruQch 819 

Wyaudwle  -pur  ...          I'A 

8UieLiiie  to  KausisCity l.Tit 

ToUl »WJI 

Adde<i  (luring  the  year! 

Coyote  to  Shi  rldan «        ID 

•JolAl    4lflX 

BA9MNt39   AND   tXFKHtMA, 

The  f  nowio;<  table  giyes  an  exitibit  of  bufiaese  as  compared  witb  1867 : 

186T.  18SS. 

Av'TSge  length  of  rode  operated 2S8  45.100  41B  as.lQ 

BAaNIMGB. 

Piom  GkiTcrnirent  baitneot $$11.8(13  04  •482,80  IC 

Coininorclal       '"              I,ini.ti88  44  l,Mi,l«A» 

C«nti  curaMrebht »0,9»S  14  14S,.1MTS 

Mltfccl hneoas  sources , 40,038  14  Ujm.9 

T.>ta  earnings ^ $1.8^-3.864  7«     $1,910,161  b3 

Operaiingezp  u^es        ..       1,«97,«!8  68        UJK.4»4:j3 

Netearninga , $60tt,«5  07  $s;a,«C7  O 

Per  cent  expeases  to  earnings ^  : 66  4.100  54  86.10i> 

Baming»  per  mile « $4.Taft  63 

Operaung  expenses  per  mile S,5b9  tf 

Ntteamings $S»U5SB 

The  items  of  ezpenees  were? 

con  i  net  in?  transportation $fTCi.':S9^4 

Motivep^er 4ie,JO7d0 

Myintt^u.nceofcars 63,0i» 

MalQtcmi  ce  v.f  way t2U0±»4l 

General  expenses 58,4^33 

TBaYEL  AND  TRAFFIC. 

The  total  of  paesengen  carriad  was  109,882 — 69,718  westTird,  ftiid  40,618  east- 
ward.   Of  tbe  former  10,094  were  immigrants  settling  to  tbe  8tate. 

— The  rontract  for  putting  down  the  iron  on  tbe  BurliogtoD^Odar  Rap-de  mni  His- 
netota  liailroad  baa  been  let  Track  laying  will  oommeoce  at  Burlio^toQ  and  CeJar 
Rapids  about  the  \i%  of  June,  and  it  is  expected  to  baTe  tbe  wbuU  lioe  tl60  ouies) 
complete  i  fri'U  Burlington  t  >  Waterloo  by  the  1st  of  January  next.  The  oompioy 
bae  already  purchased  fi,000  toce  ot  iron,  lour  looomotJFee.  and  a  number  of  tUl  cm. 

— The  Dubuque  and  Sioux  Gity  Railway  will  be  completed  darini^  tbe  preacet 
season.  On  y  one  hundred  aud  thirty-^ixm-lesare  left  between  tbe  East  aod  West 
ends  of  the  track,  and  of  this,  thirty  miles  from  each  end  will  be  in  operation  belsre 
the  Ut  ot  J  ly.  Ten  thousand  tons  of  iron  are  coming  forward  from  ScrmitMi,  P^ 
via  Oiweio  and  the  lakes, as  rdpil  y  as  possible,  and  tbe  entire  work  ia  prwf 
wiib  a<i  tbe  energy  that  men  and  mo^^ey  •eao  comman  :*. 


1869]  RAILROAD   ITCU8.  65 

C'^icAQo.  Rook  Islakd  A  PagvioR-B. — The  aoDoal  report  for  the  year  endiog 
Uarch  ^\^i  ehowa  the  following  : 

The  f^e^  rurnlne*  for  the  yefti  amonntto $5,381,079.75 

The  opiratiDg,  le^al  ezpen»68,  taxe«,  Ac  ,  aro « 2,AS8  8^0.tfl 

Lenvln?  net  earnlnn  . $S«7  8,099  14 

FaiddivideDclB,iBtere«taad  Peoria  reiit 8,'<i6O20.39 

Surplas  earniDge  forthe  year $445,678.85 

The  percent «ge  of  operating  expeosfs  to  c arofngs,  iocluding  IocaI  espeoaes  aod 
taxes,  is  48  2  -100  per  cent. 

The  pvTCentage  of  op^ratiDg  ezp*  tiTes  to  eamiDgs,  lesA  ) jcal  ezpeoaea  and  taxes,  ia 
45  28.100  per  cent. 

Thp  profit  and  lo«8  acconnt  8kowe  a cr  dlt  balance  fortbe  year  end<Jis{ADrUl. $1,697,914. OS 
Dedact  oivideod  paid  April  id 7S>,a0C.0U 

Total $d6i,$41.(a 

Or  a  »arplii8  of  a  little  over  6  per  cenN 

Th  report  eatimatea  that  th*)  coiupany  wii]  require  the  sum  of  $3,448,1 20, to 
meet  the  p:iymeDt8  falling  due  the  n«;xt  thirteen  m  ntiis.  as  followa  : 

BoDda  of  th    Brl  -^  ge  CompiOT  due  Jannary,  1870,  i^narHnteed  by  th!a  CompaDy $400,000 

Hoijd4of  tbe  Chicrifru  dfc     ock  Iplitnri  Kallroad  Company  daeJaiy,  1870 1.<197,U00 

One-  fit  C't  I  uf  balidingn  w  bridge  over  ibe  Miaaiea  ppl  river  at  tbe  c:ty  of  Rock 

l^riflfi      ,    «,..*••    ■■•■....    .*••••■    ...      ••  ..   •  ••    ••••        ••■•■•■••••«••■••.      oOOfUOQ 

Nrwf  e  <!b  hmldinga and addliiuDal  track  ;n  theclryof  Chicago 7Tsl20 

New  eqa  pment 681,0J0 

TotaJ $Mi8.1w 

The  hal  Dce  sheet  ahovts  the  company  had  oo  hand,  and  ayadable,  the  .folio w- 
insr  items,  April  1 : 

Caahfa  x  si^tHot Treaaorer^a  hande $M7r,0l5.09 

BLl    recev  bid ».,....  :i8!l.U7U.00 

From  whlc'j  »hoald  be  deducted  tae  dividend  paid  April  10  f  781,115.08 

M  ice  the  da*e  f  r  which  this  r<>porfc  w  s  made  (April  I)  tbe  most  of  this  balance, 
toifether  with  tbe  curre  t  eanii*  g^,  have  ^een  expende  i  in  paying  tbe  final  e^ti'oatea 
of  t  e  c.f  tr-  ctors  aod  other  ^xpen^es  inoideutal  to  building  aod  preparing  f  ir  oper- 
atint;  the  new  portion  of  the  rnal  between  D'-'^  M  ines  and  tbe  Missouri  rivt-r,  tto  that 
the  C4nupHny,  after  providm^  for  the  payment  of  tbe  July  interest  on  tbdr  bonded 
iot  (ibt««in<'8(i,  will  be  virtually  out  of  cu»b. 

Tu  raine  these  necessary  fu  •  is,  the  company  will  either  have  to  report  to  an 
iocrfsse  of  its  capital  stock  aud  the  sale  of  the  same,  or  a  further  iasne  of  its  mort* 
gsjce  bun  s,  either  or  both  of  which  it  i^i  fully  autho  ixed  to  do. 

Thb  Ikdiana  Raileoad  Law.— At  the  recent  s 's^ion  of  the  Indiana  Legislature 
an  iiijpt*  tant  Liil,  authorising  counties  >in  1  towniihips  to  aid  in  the  construction  of 
raiirMniitt,  was  passe  J,  aud  is  uow  the  Uw  of  the  Stat*.  Its  most  important  provi  ions 
are  as  follows : 

Whent-ver  one  han'Jrod  freeh  iPers  shall  petition  the  Oonnty  Oommissioners  for 
an  appropri  tion  to  aid  sume  organic  d  r'iiroad  company  to  cooitruct  their  road 
thr.iu^h  or  in  lbeo«)unty  to  nn  a  lonnt  named  within  the  petition,  a  d  "ot  exceeding 
two  per  c«  nt  of  the  tazablea,  as  shown  by  the  last  dop  icate,  the  Commissiuners 
are  ici  omer  the  polls  opened  upon  a  il  *j  by  them  app  inted,  of  which  four  weeks' 
notice  is  l*  be  given  by  public ition,  fjr  the  vot 'r-i  of  the  county  to  vote  upon  the 
subject,  [fa  majority  of  the  votes  cut  nre  m  favor  of  the  appropriation,  then  the 
C'iumi-(''i(Hiers  are  to  levy  a  tax  at  their  en  nin;  June  8e«Bi>>n  to  raise  the  money; 
but  the  tax  in  one  year  cannot  exceed  one  per  cent  of  the  taxables,  nor  can  tbe  ail 
vote<l  to  each  nvad  exce«^'i  two  per  cent  t^iereon.  When  the  money  is  collected  the 
coucity  c  >n  either  take  stiick  in  the  road  and  and  pay  when  it  i^  subscribifd,  or  a 
donnti^n  can  he  made  by  th»  0  •  imi-^^ionerA  to  (ii>l  in  its  coistro  tion.  If  tbe  m  «ney 
is  rto  r.tted  payments  ean  be  made  on  y  after  the  road  is  locate  1  and  work  upon  it 
done  aod  paid  for  to  an  amouni  e(|ttai  tu  the  donation,  nar  can  more  than  tifly  per 

5 


66  RAILROAD   ITBM8.  [/nif, 

Cent  of  the  anooant  Toted  be  donated  Qotit  the  cars  nio  orer  the  road  thrragh  tbe 
county.  A  failure  tocoirrccnce  work  within  oney«'ar  after  tbe  tax  is  Uvied,  or  Lilon 
to  complete  theroa  i  within  three  years,  t'orf  ita  al  right  to  the  money  Ttiied,  tmlew, 
for  goo  caa»e  fbown,  a  year  additional  it  granted  by  tbe  Commiaflioaen ;  a&d  til 
money  forfeited  good  nto  (he  genera i  fund  of  tbe  •  ounty.  Phe  proriyi ms  of  tlk«  btU 
are  also  made  applicable  to  t  whahipe  wheneyer  twenty-five  freebolueri  iball 
present  a  petition  from  their  townahip  for  aid  to  a  road  to  be  built  throqgh  tut 
aame. 

West  WiaooNBiir  Railway. — This  road,  formerly  known  as  the  Towah  ao)  Ltkt 
St.  Croix  Railroad,  is  progrefsing  with  tbe  completion  of  ita  line,  an*!  h«9  iii«v  io 
operation  82  miles  of  rna  i  fmm  Tomah  on  the  line  of  the  Milwaukee  it  St  PauI 
Road  10  Black  Ri?er  Fallii.  The  road,  when  completed,  will  extend  frum  Tomih, 
through  several  towns  already  of  considerab  e  sis** ,  and  a  fine  agricnltura)  and  lum- 
bering district  to  La^e  St.  Oroix,  and  th«-nce  to  6t.  Paul,  sburtenioif  ve  y  isucfa  the 
disianre  between  that  city  atd  Milwaukee  anit  Chicago.  The  company  has  a  fo>l 
land  grant  of  6,tOO  arres  of  ian  1  to  the  mile  n  alternate  ^ctiooe ;  and  »t  la  the  op!c- 
ion  of  parties  well  acquaint  d  with  the  n^iture  of  the  country  thruu^b  which  tbe  r^td 
passe->,  that  the  land  will  sell  for  enough  to  pay  the  enure  amoant  of  bouds  i98o«U  for 
conntruetiun. 

The  portion  of  the  road  now  open  is  operate  bv  the  Milwaukee  A  St.  Panl  Com- 
pany under  a  contract,  and  it  is  stated  by  tbe  officers  that  the  earoiii^^  oi  the  rm\ 
were  sufficient  to  pay  the  July  interest  on  the  debt  tbe  amount  for  that  porpusc  bvis^ 
dep'fitAd  inihel^Diion  and  C  unty  Bank,  t- a  ly  in  June. 

'Itie  first  mortgage  7  per  cent  gold  b  nda  of  the  We»t  Wiscooaki  Railway  in 
quotfd  among  the  American  securities  on  tue  Lou  ion  Exchange,  and  at  tbe  pr«e 
tor  whic  tliey  are  negoiia  ed,  should  be  a  very  valuable  security,  and  will  lind.Kibi- 
edly  advance  to  much  higher  prices  upon  the  completion  of  tbe  roa  i  to     t.  Pnal. 

The  Milwaukee  Chamber  uf  Commerce. recently  adopted  uoanimoosly  tbe  f.ltoiricg 
resolutions  m  regaid  t )  this  road : 

R«;b  'ived,  That  Milwaukee,  represented  by  this  ^  ody,  feels  tbe  inapoitaDC«  of  tbe 
early  completiou  of  the  load  to     uds  n  aud  St.  Paul. 

ftesulved.  That  the  energy  exhibiied  by  Mr.  D.  A.  Baldwin  and  bis  a^mrUt^a  m 
earryiog  to  completion  the  first  section  of  the  road  in  a  manner  so  crediuUe  tothea, 
ehalleuges  our  respect  and  confiilfcoce. 

Ri solved,  That  i'lo  We  t  ^isc  nsin  RaiV^ad  b^s,  in  our  opinion,  a^olid  aal  s>^b- 
atanttal  basis  sufficient  *o  appeal  with  ctinddeoce  to  capitaiii«ta,  at  home  and  abroad, 
for  aasistaoce  io  th   completion  of  the  work. 

Resolved,  That  this  body  extend  to  the  West  Wisconsin  Railroad  all  the  ail  in  iia 
pow«r,  with  th<)  full  confidence  that,  wh  le  the  work  U  one  of  iiofortance  to  oor  nfj 
and  the  oouitry  whi  h  it  penetrates,  it  cannot  f^i!,  under  such  maDagemeot  as  Las 
thus  far  charaeterixed  it,  to  pr  'Ve  a  profitable  ioveittmeat  to  capital. 

— The  State  Treasurer  of  North  Ci'o'iia  has  delivered  to  H.  S.  Cowan,  E.<qi 
President  of  tho  Wilmington,  Oharluiitt  aai  Rutherford  Railnad  C»opaiiy  #l.oov- 
OOu  of  North  Carolina  State  bondd  f  >r  that  '^oa  t.  Mr.  Cowan  will  call  a  siocBhoUiea 
meeting  on  the  2bth  ot  July  next,  to  elect  officers  o/  the  roid. 

—lAncastero  unty,  Neb.,  the  second  county  west  of  tbe  Mi «  uri,  hae  voted  aid  to 
secure  the  extension  ot  the  liurliugton  and  Miseouri  River  Railroad  through  it.  rbe 
terms  under  ubich  tbe  bonds  are  issued  are  thtt  tfa-'  company  are  to  have  tbe  lint 
under  contract  from  Plattamoutb  to  Liocolu  before  the  ISth  of  June. 

—  he  Western  Union  Railroad  has  be»n  soil  to  Alexander  Mitchell,  Presideot  of 
tbe  Milwaukee  and  St.  Paul  Railway  Company,  under  whoee  management  tb«  rowi 
will  hereafter  be  run. 

->The  Iron  Mountain  Railroad  was  opened  to  Fredericktowo  to-day,  105  n.il^t 
from  St.  Lnuis,  which  leaves  only  a  gap  &f  26  mile^  to  be  ironed  between  St.  UtM 
and  Belmont,  and  which  will  be  finished  in  a  few  day 4.  ;klr.  Allen,  the  Frssideut « / 
the  road,  will  visit  New  York  in  a  few  day,  on  busiuesa  connected  with  tbe  con-^ 
structijn  of  the  road  from  Worley,  Mo.,  al >ng  the  western  b^nk  of  th^i  Miwi^^pp' 
River  to  a  point  opposite  Memphis.  Large  grafts  of  land  and  of  stock  have  bees 
guaranteed  to  le  taaen  by  the  oountiee  through  which  tne  road  will  pass.  Tbt 
citixens  generally  are  alive  to  tbe  importance  of  tbe  project. 


1869]  TBS  KAV8A8  PAOIFIO    RAILROAD.  67 

—At  a  meeting  of  the  Directors  of  the  Iowa  FalU  and  Sioox  Citj  Railroiid,  at 
Dohnqne,  on  the  10th  lost.,  a  mortgage  of  the  road  was  aothnriced  to  eecure  the 
bjndt*.  at  the  rate  of  |16,<00per  miltf,  from  Iowa  Falls  to  Sioux  ity.  Pre^irlent 
Biair,  io  coDversatioD,  stated  that  w  rk  apoo  the  road  will  be  pushed  forwa'd  as 
f.L!9tflfl  pn8«ib'<?,  sad  isnaoguine  f^at  rfgalnr  trains  wil  be  running  into  Sioux  City 
hy  the  Ut  of  June,  1870.  8ix  miles  of  iron  will  be  laid  within  the  next  thirty  days, 
m]  Tuih  are  now  Ian  .ed  ia  Chicago  sufficient  to  lay  the  road  fjf  one  hundred 
uiile9. 

—The  stock  ao  1  bbndhol  ]ers  of  the  St.  Louis,  Jacksonville  and  Ci*>cago  Railroad 
hire  aatborized  the  Board  of  Direct  rs  to  contract  lor  the  extensimo  the  road, 
b^nQioi;  at  Hopedale,  a  point  tweoty-two  miles  south  of  Bloomington,  and  running 
through  or  near  ihe  towns  of  Tremoni  and  Washington,  in  Taxewell  county  ;  \leta- 
mora,  m  Woodford  county,  and  Wenotia,  io  Marshall,  and  thence  to  Dwigbt,  on  the 
Cnica^iand  Alt<>o  Railroad.  It  has  a'lso  been  determined  to  build  a  branch  of  the 
road  to  Ii^con,  on  the  lUiDois  river. 

—Tbi  Mkmpbis  Kl  Paso  and  Paoifio  Railroad  CoMPAMr  give  noticu  that 
m\e(\  prop'vsats  will  be  received  a'  their  offi*es,  t)6  Bc^haogn  plac*,  till  Septernbtr  1, 
186^4.  for  the  clearing,  grading,  track  laying,  Ac,  on  one  hundred  and  sixty-five  milaa 
ot  their  road. 

—The  aathorities  of  the  Cclumbia  and  Charlotte  ao^  C  Wombia  anl  Augusta  RaiU 
ro&'lf  h<ive  agreed  up  n  terms  of  ooosoli'lation,  to  be  ratifiea  or  rejected  by  their 
respective  ttitck holders  in  July.  Uuder  thei  terms  Bg^ee<l  upon,  the  stock  of  the  Ool- 
imba  aud  Aoixunta  Railroad  is  valued  at  f  22  a  share,  that  of 'the  Charlotte  and 
S;']th  Carolina  Railroad  is  valued  at  par,  and  four  and  a  half  shares  of  the  former 
&re  to  be  received  for  one  share  of  the  latter. 

PnrsBOSG,  Fort  Wathb  ard  CHioAao  Railroad  Lbass.— In  regard  to  the  terms 
of  tbi^  igreemeot  the  New  Yore  T^met  snys:  **•  A  railway  frien  t,  who  has  closely 
vziminfd  the  recent  lease  of  the  Fort  Wayne  road,  wrires  as  follows  :  The  Board  of 
l^i'ectors  of  U*e  Pittsburg,  Fort  Wayne  and  Chicago  Railway  Oompany,  under  the 
K^'Iutioo  of  the  stockholders  and  bondholders  adopted  at  their  meeting  on  the 
iVX  have  derided  to  ia^ue  a  seven  per  cent  guaranteed  stock,  th  •  dividend  on  which 
vill  b«  payjkble  '"UArterly  rn  the  first  da>  of  January,  April,  July  and  October  in 
(i^'-fa  Tear,  lliese  dividends  will  be  fee  of  the  United  States  income  tax.  ani  special 
rTec>iutioos  have  been  made  in  the  lease  that  they  shall  erer  hereafter  be  free  from 
:educttont  for  any  tax.  It  is  understood  that  c -rtificates  are  being  prepared, and 
tbkt  when  ready  for  exchange  due  notice  will  be  given." 


«^M^tf^r^^M'^tf^^«^*»^*«A^Nrf^^W«^«^^^k^M^^*'*^^*^ 


THJ2  KABTSAS  PACIFIC  RAILROAD  (E,  D.) 
The  following  shows  the  exhibit  of  the  General  Account,  March  81, 1869  : 

DXBTOB. 

C  >«t  of  constmotloi  and  eqalpment  438  mllea,  iuclading  tnr veys  ' o  the  Pnciflc, 

:i{btot  way,  and  real  e^iatd  parchased. $St,69S,917  81 

l^t'rcsioQ  faulted  debt,  and  amount  paid  ta  dUconot  and  interest,  since  Be* 

,'^  •nbcfSl.igAS 90«S844l 

i^ufMmQovernmeTitfortrarsporUtlaO 1T7J0O  01 

'^>'<receiv  bl«  (Chiefly  Land  Notee) 874,843*76 

■-^srroDK'thereoiitpuiies 14,835  01 

i'ldf  omlndiTdoaii*,  iaclndlng  amoants  advanced  on  audited  accoonts......  S5,(i84  78 

:' :  ute*  tiatances 68,430  96 

'  '3  offi'tp.iiMonliand $Sn,90<)  80 

b^dry  uiVMtmeoto 00,487  84 

n  w     ,  888.866  64 

^  and  «eearities  on  hand 66.774  66 

"^andloss 7,8^0  67* 

$88,698,618  08 


«8 


TRADE  Of  •BEAT  BRRilir. 


[/«*. 


yards  to  the  United  SUtet,  and  9,20r,000  yitrda  to  Bra»I.  Tbe  follovipf  atatfiMBt 
•howA  tbe  ezt«ot  of  our  ezporti  to  iht  United  Statea  ia  tba  fini  tAvca  niantbi  cC 
tlie  preaenl  and  last  two  years : 

1887.  :WV.  MH 

▲Ikali.cwt .     «».0»l  *«.*«  4«,« 

B'or&ale  gals 6,«'»  6in:  M" 

Coats.  t"iie        .  Si^OU  to,t»  17,06 

Cotton  M^KUFAOTumss: 

Piece   ood»,jdi 411i4.SM  8S,*»0«  44Ttiltt 

Thitad,  lb 4at,«4H  48«.?««  45Ma 

JEsrth  i.ware  and  Poredain  pkn W.K01  Sl,ii68  f,m 

Haherdai'h  ry  an    Mil  lo^ry  Yalae ^ £514,MM  ftiiwMT  mjm 

HamDW.VB  AND  TUTLB   T: 

Knlv  8  loiks,  Ac,  vilne £71^180  £njaB  £«.« 

Afivi  »,  M  es,  Ac  .  valoe. «l.4«  ltt4«  fMW 

MaDuractDrea  of  German  diver,  falae. 2«ft,yi4  ftl,t90  US,fii> 

Ldtb.^  M«  trAOiuBi.a« 

Pcc«g.*o.ls.y.rda »,44<>,0:0  90,77^444    8I,«JM 

Throi^lbi ? 400.U04  »IU.»4  lU»Wi 

Mbtai^s— 

Iron— Pisr,  Ac«  tons «9,16S|  6.8  7  K,^ 

Bar,  Ac,  tons IS,1U7  awt  IMJ 

KailroMd,  tons Sj.WI  U0,Uz7  !*» 

Caatioge.  toiiM 1«  •=!  ^ 

Uoop«,  abeuCs  and  boiler  plates  tons. 4,491  l,fi(4l  t.iM 

Wrought,  cons '!.*•  «<  ^2 

Steel  Unwrou.ht,  ions t»t  1,791  <m 

Copper,  wr.  nght,  cwu 9,617  •»!  IM 

I-ead,  pig,  uma       1,846  t,«l  im 

Tin  platr8,cwU .      lia»44  H\m 

OUseed.galla SKftM  W,  14 

Salt,  tona      8J,«45  44,4oO 

flnjL  MANurAcruBKs—  _^^ 

Broad  piece  guoHa,  Ac.,  yards 196,908  U0,!«9  »:,m 

Handkerchief.  Bcarfii.  Ac.,  doceos «9S  6t  £■ 

Bibbuna(if»>ko..lT.  IbK  1»,  W  •.Xl  ^3 

Other anlclesoi  silk,  nly.valne £i80e«  Win  ¥M 

hiUmanuraii.lX'd  wl  bother  nutemls £i4,7i4  ltt,'i»8  »,fjB 

Spirits.  (IriUah, gal  s 1,977  !».«««  14k« 

WooKlbs....         8,814  SlWl  9lMn 

WooLXM  AMD  Wobstbd  BCarvvaotubbs—  •  -  *^  — » 

Cloth,yaids tOV,685  1,518«<«S  VB8« 

Carpets  and  draffgets,  yards ],d88»*l  bSm  41  l,£8l,tn 

6hawli>,  rag»,  Ac  .  t  nnilMr 68,016  81,851  8a.4W 

Worsted  siofis,  raids 16,7Gak.86  19.9»^««»  t^^f^JM 


Tbe  following  reta  n  ahowa  tbe  prieea  of  cereal  pttniaee  at  tbree  periodeio  tbe 
rent  aeaKNi,  yia :  when  new  produce  commetioed  to  airi?e  freely  at  niark«>t,  wboi 
Spring  core  was  st  its  bigLeat  point,  and,  last'y  during  the  preeent  we»k.  Tb  -  dovi^ 
^ard  moT*iDeot  in  mbeat  baa  been  uninterrupted,  and  it  ie  betieved  tbat.  ae  it  was 
folly  :  nticip«ied,  do  loe«ee  ba^e  been  incom  d,  eomocb  caution  bavi'fr  been  exndaed 
tbroo jhout  the  aeaso'*.  Bar]«'y  and  oats,  bnw<>Ter,  advanced  to  a  bigb  iioint  by  tbe 
oommenccmei  t  ol  NovemlMr,  but  from  tbat  period  a  semewbat  ra|  Id  tl«»wiiwud 
mofeoK'nt  f et  in,  and  tbe  re»uH bae  been  tia*  prices ba?e  decliped  (as  in  tbs  cass 
of  foreign  f  ed'ng  barley)  as  much  as  18'.  p%r  qaartif,  or  about  8'^  per  cent.  Beaai 
baye  decline  J  from  1  a.  to  16s.;  peae,  8a  to  be.;  and  Indian  corn  Se.  to  9s.  per 
qnarter: 

Ang   8,  1888.  Kor.  t.  l<«8w  May  8,  18A 

Wbe^t:                                                  F    ooa  i«r.  Perqoanr.             i«rqaa>tar. 

SDgUtfhred.... 6fi(ri.  da.  6aci64a.  a^Mi. 

Qi^Hfh  whie 6i^*i:a.  M^vs.  4i444to. 

JOieig    r-d 6t<S«Ss.  4';^^4«.  4804^. 

orelgn^hlt.< CoSttts.  64486M.  ^QfiM. 

Barley : 

Bngli  b  msltlng 94^l4ii.  VT^Ms.  9< 

Bn)£i  shx  Indm/    Std't  s.  BS<^884. 

Vorelg  •  grl.oing 8i>o8iS.  88^8U.  %*i 

Oat- : 

Knglshied. Sl^88«.  Ve^«S«.  rOS8i. 

foielgnfued 8<4»8da.  ii«S9a.  mM^*- 


1869] 


TBADK  or  GBKAZ  BBITAIH. 


t»0 


Be  ns: 

RnsrH-h « 44&»9. 

fotti)£n 41^48b. 

Peas: 

tos'i'h 49^49: 

*o  elirn 41^ieft. 

Indian  Oorn: 

Jhi. rP^i8i. 

icIJow SI®12«. 

„F1"B  :  Ier580» 

Townmade fiO^Ms. 

i'on"  ry ii^sU, 

"^h  6u^5is. 

Pe-  b«*Tel. 

Anerican St9^£5s. 


41^181. 

44^488. 

48^1. t. 

»d88s. 

43^  I*;!. 

8^4  B. 

48^448. 

Pe-  brreU 
S&^aOB. 


8*^49b. 
8. $881. 

87«M80. 
86^390. 

Sl®S8l. 

Per  S80» 
88^48f. 

Per  barrel. 

S8(dS7i. 


During  the  past  tfare^  months  of  the  current  year  onr  imports  of  wheat  into  the 
Ufiited  Kiogd<  m  were  1,400,0. Oc» I.  less  than  they  were  in  the  correspoodin '  period 
in  1868.  The  more  important  feature  in  the  return  is  the  diminution  of  about  1,  0  J,000 
cwt.  b  oar  receipts  from  Egypt.  Tie  fuUowing  are  the  chief  DsrtlcuUrR  of  our  im~ 
p  rtiof  wheat  and  flour  in  the  firet  three  months  of  the  present  and  last  two  yeaii  • 


WBKAT. 

18M. 

5o'«'a ewt.  1,780,915 

Pr"*i4 »0l,U1 

*ra'te S84,07d 

iu>  ria,  Croatia  and  Dalmatia  Turkey,  MoldAx  U 

^AkVaUachla 677«fll8 

^V- 10.964 

ImudaUtes 608,944 

Total,  lodudiog  other  coontties. 0,031,839 

Ji'^B*  Towns 190,069 

f«'ce 815,189 

UoitcdStates 69,560 

TotaMncladlog  other  coontrlcf 885,188 

ADoexed  is  a  statement  showing  the  imprrts  and 
ttd  (rom  the  United  Kingdom,  from  September  1 


1887. 
9,875,478 

11,129 

1,858,146 

3,«4-,H89 
l,8b8.110 

8^4(15,591 


159  806 

18«.^38 
90!,709 


1988. 
9,M6,59S 
915  .)76 
»4,800 

671,468 

900,186 

l,W7i,8€5 

lio36,015 


177,879 
479,665 
101,601 


718,887  1,114,981 

exports  of  wheat  and  flour,  into 
to  th^  cloee  of  last  week : 


WHBAT. 


Imports.' 


Fwm-  18t>7-8.  18  8-0. 

aepUltoKsyl ewt.  94,816,560       19,873,41 


* Bzports.— ^% 

1867-8.  188P-0. 

565,610  18l,«0 


FLOUB. 

S«ptltoMay97 9,866,118         9,758,788  88,265  98.148 

Ann<-xe<i  is  an  approximate  tta'ementof  the  imports  of  cereal  produce  into  the 
Unittrd  Kingdom  in  April  an  lio  lonr  months.  This  year's  Apr  1  statement  embraces 
i  periud  of  28  days  ;   but  that  of  the  previous  three  yevs,  80  days: 

lap  'BTS  Ur  ATBIL. 


1845 

^^^t ewt   l,5lilVo 

wcy >6i.87i 

g»t  54:1.6  9 

£«« 94.719 

«»/•• ft<,m 

{naUtt  com 7  6,T09 

««ttr 4&i,8l8 


1869. 
8,910,018 
53-»,l^4 
16  ,5S( 

7M  1 
144,41(4 
|I75,H14 
916,.^ 


IMPO'  TS  IN  rOVB  MOTt  B8. 

yt'^t 7,lJ<«,&0d  9,9J1,870 

gHcJ J,6'i«,4  5  9,7«,840 

J«« !I0»,8«7  88>.448 

Man* 119,^85  6aO,HlI 

Jn'«4aconi 4,mi.57«f  9,98,401 

*1«>M       8,444,4.8  M8j,4b8 


1867. 
8,09 1,^69 
506,i33 
74  .••«7 
83,009 
345,».)J 
8»  ',470 
948b86i 


ll,6rA890 
l,7W*,4Hl 
1,H9  »,095 
9ft«,3l0 
694i6:i 
8,191.557 
l,091,7i5 


1868. 
1,8  «,741 
480,5^ 
4I»,157 
8't,416 
15,969 
(186,080 
804,878 


8,899,769 
4,l«9.1t4 
1,6*^488 
39:i,ttl9 
78i,386 
4,^6d,^86 
1,44;»,159 


60 


TBAD8    or   GRBAT  BRITAIK. 


[M,, 


Boslnets  c'uring  the  preieDt  week  io  th«  manafactDriog  tfistiiets  hat  beeoez^iemelj 
q^jiet.  Tlere  ha^,  iioweTer,  been  a  fair  amount  of  buying  on  Iba  part  of  the  Unitad 
States;  bu',  with  ffW  ezoeptioos,  the  greMeat  caution  haa  been obiarved, and  bat 
few  putcbafes  lare  been  made  in  excene  of  actual  rfquiremenla.  Coiton  is  lower  io 
price,  owiD]{  to  the  angmented  ehipmenta  from  Amertrao  and  Indtaa  port?;  but  it  ■ 
atated  that  the  ah  pmenta  during  May  and  June  will  be  very  amalU  Tbe  Ixiik 
demand  u  7ery  '^^uiet,  and  at  Uanchenter,  although  there  haa  been  no  prcfeoratotdl, 
boy  eta  have  rvfrained  froBi  operating  largely,  ezccpi  at  aome  conceaeion  io  pcioeieB 
the  part  of  \  roducere. 

The  <o1Iowio(<  return  showa  the  extent  of  our  ezporta  of  the  prinetpU  roHon,  lioeii, 
•ilk,  and  wool  n  goodi  to  the  United  8tatea  and  France  dnricg  the  firai  three  mooUii 
of  the  present  and  last  two  years : 

TO  TBI  UKITSD  STATXS. 


Cotton  piece  goods... Tds. 

Cottou  yarn Ihs. 

Linen  pi  ■  ce  uoods... yds. 

Linen  thrfSi lbs. 

ttl  Ik  pece  goods 7  a. 

Voolen  clotii yifa. 

CirpctD  an'1  drn^cgets -  ..    yds. 

Worsted  staffs : yds. 


Total »l,Mfl, 


TO  VKAHOV. 

Cotton  yam ,  Ihs. 

Cotton  I ilec  •  goods yd«. 

Cotton  th  (ttd. lb*. 

Linen  }arn lbs. 

Linen  pece  eoods       .....yds. 

Silk  piec  gocdi yi*. 

Woolen  yim •*.'.. lbs 

Woolen  c'oti  , yd*. 

Carpets  and  drnggets ..^^ )d4. 

Worsted  sinflis yds. 


ISfiT. 

1888. 

IfO. 

44444,H1S 

8S,'nD,UB8 

41,714.38 

4(»«.fM6 

48%7«J 

4SS,in 

».44fl  010 

S).778,444 

S1,SS.NI 

4UU.H)I 

f40.8>4 

tlV^ 

lMt,9J9 

1  U,  «B 

i'7>n 

«,'»,«  5 

l,5t8.66< 

1.!B6,«I8 

1,6. ^t«l 

85\S44 

1.5ff,«l 

Itfji  8.185 

19,t«i,44a 

%imm 

»l,Mfl,.ai 

77,681,968 

TiiA^ii 

»8M» 

l,neO,741 

844J»« 

18.1IM.70T 

8,10  \488 

1*,M1,N» 

«4,»7» 

61,08 

84.:n 

l,«I8  7tt 

644,0I« 

9<«.i/fS 

1,4M,699 

9^0  916 

ijusmi 

Oil 

8,488 

5JA 

491. <»9 

1,M»,7«7 

9n^i 

«.0*I.R  8 

601,7  «4 

4mj» 

7i.»«l 

91.9  li 

l:5.aiS 

11,6  7.548 

4.4tt,407 

4,90.91 

Tofal..  98,;I6&,£1» 


17,917,579  19,83UU« 


The  pi  blic  rales  of  Culooial  wool  were  commenced  thia  CTening.  The  arrivals  eooh 
prise  4l,s68  bales  from  New  South  Wafps ;  1  2,907,  Yictor'a ;  8.078.  Yad  Dieoia&'i 
Land;  2' ,868,  Adelaide;  21,9»8,  New  Zealand;  8,820,  8wan  Eiver.  and  Sf^SO 
bales  from*  the  Cape  of  Good  Hope.  The  biddinga  b&7e  ruled  heavy.  AD^tnklfi 
wool  has.  in  son  e  iostancea,  declined  -^i.  and  Cape  i^ld.  per  ib.  m  coDpared 
with  March  laat.    The  foreign  demand  ia  only  moderate. 

Our  imports  of  wool  thia  year  haTe  been  very  large,  more  eepedally  frrm  AostraSi. 
They  were  as  follows  during  the  first  three  montha  of  ibe  pieaent  and  l^tt  two  yean. 


1887. 

FromCon'inent Iba.      S,>«i<8,«1 

Cape        .... 6471.660 

Bnn>h  ludU 1,6«II48 

An*tr  Ila  ... 1  ,»ft-,&8l 

Other  countries..... ',y81,tt&8 

ToUl 88,878.180 

—while  the  exports  hare  been  aa  under  : 

O  LONIAL. 

lew. 

To  H^n»e  Taw^a lbs.      893.748 

Kn-i.e 8,7M,VI5 

U.i  t-d  State* *«,8Jf 

Other  coautrles 4i  ,954 


18«« 
1.410.705 
6,0^.9af 
8..M,1.8 
11.  6t.49t3 
8,S^1.4ji 


ISA 

l.fiMS 

84.Btf.»l 

348^ 


98,8eO,fl<W        61,33.631 


ipes. 

9,815.471 

4,7->9,W4 

9,97  «S7I 

99.411 

681,88} 


Tola ; lu,lit,U7       18^0I7j 


17H,4» 

8.0V1M 

11.&N.88 

U7.»r 

19,711.63 


1869J  THB  ANVaAl.  SAYINQB  OV  INGLAHD.  51 


,     „           _                                                                               1887,  1888.  1869. 

To  Hin8€  Towns Ibt.      216,448  lH.n« 

B'tlav 8««,«Ud  709,(HiO  3M,l.f8 

Pr»«'Co  53W461  T'v^rs  46,0>7 

UnltedSUie* •il8,W5  8iJ,  M  1,9(K>,981 

Other  coontries 18j«H70  20,043  107,768 

Total ^,103,8J7  l,4»»/JaA  "2^374,9^4 

90XB  Qsoirir. 

1P67.  1808.  ♦      1889. 

To  Hsme  Towni lbs.       615,063  45*,y21  84t{,501 

Helsfam 255,424  87  .r)07  *iU5jll 

Fran  e 27^^Wl  1,87.9^7  864,277 

UuiUid-tafM 8,314  8V.81  9^871 

Othtsi  countTief S81,751  84S,t45  256,840 

ToCftl 1,449,946  2,651,271  2,-«8,lU0 

Ae  regards  the  exports  of  woolso  goods,  the  followiog  are  the  particulars  for  the 

three  moDths  : 

1867.  1863.  1869. 

Tarns,  Ibe 8,1«6,:^65  Hv-'-^-S '.sg  »,0i:,3.iO 

Cloih,  yds 8,400,9»  tt.101,674  6,  50,8  3 

KIannl«,yd8 I,8i0,0«7  1.240,«.eO  1,467,71!! 

B.anket9.ya4 75J,588  714,2^i  3,«;17  (» J 

B  ai  kciii  g  and  halses,  yds 487.7C6  2  tf,2»(t  2<iU,2i:i 

i arpeU auu  draggets 2,019,405  1,6<9,8HI  2,IM4,«38 

&Liwl»,  ra^s.  &c., nam in,2S8  lli),945  17w,8t8 

Wo.st«dsiBlb,yds 64,778,458  il,46o,81l  63,4.2,822 


THS  AnVJLL  SAVIJIGS  OF  EiVGLAHD. 

A  correspoDdent  of  the  London  Eeonomht  wiites  as  follows  on  th  s  ouVject : 

We  have  all  seen  statemeots  cf  the  aooual  savings  of  the  Uuiied  Kiugdom, 
vfaich  hsTS  been  ▼arioosly  estimated  at  from  150  to  200  millioDs  £  do^n  t  >  nil, 
u  1  ba?e  lately  seen  estimated  as  the  result  of  the  year  1868 ;  but  I  do  noi  remffiuber 
&oy  eoDciso  statement;of  figures  showing  how  such  estimates  are  made  out.  1  submit 
70a  such  a  statement  herewith.  I  know  that  all  calealatioas  of  (his  nature  uiust 
be  eitremely  vagne,  and  cannot  be  relied  on  for  any  approximation  to  accuracy.  I 
should  be  very  glad  if  yoo  or  any  of  your  correspondents,  however,  would  point  out 
any  material  errors  which  they  may  thick  I  have  made,  or  give  me  any  better  mode 
of  formiog  an  estimate  from  time  to  time  of  the  general  well-doing  of  the  counlry 
aa exhibited  by  anch  assrmed  facts.. 

TLelncomson  wtichincometaxisratsfdisa^out    £770.000.000 

'"  "  *'  '*         not  raia«d  is  aesnm  d  to  be  sboot  tho  s%mo       870,tOO,OUO 

Total  income  of  the  T7nltedKiogdom £74O,0O0,0OJ 

zxprarDXTUPs. 

Od  f  od.  at  an  averasfe  of  48  for  each  person  per  week— the  cost 
<il  fetf  itng  in  nnions  is  about  an  averafre  or  m  6d  per  head  per 
week -80,1 00,1-00  <tt  4s  per  head  p^r  week,  or  £10  168  p«  r  yoar,  )8     £312,003,000 
w>v,>rnmeot  a'<d  IochI  direct  taxes,  all  inairect  taxes  bein?  paid  in 

^iheprice    fthegoois 40,0CO,O00 

^  Je.  I  nd  tii'ht  at  £3  per  Cinlly  per  aonam.   I  aisame  that  ibere 

,>rc  N5  0,000  fami lie- 18,C0O,CO0 

Lcomoii  D.  per  ralway £17,000,000 

^uiiuoiho  ways 6,IKX',000—     22,000.000 

^<r.»pirt*,an»wiQe 6(>,000.000 

''»h..cco 8,00U,0iO 

ll*j<«..  ri-Qta*£;Uperhoase. 6",00«»,  00 

'  ">  b  Dg  at  £  ?  perhead 60,000.000 

Mna  y  rxi*eiidua*t;  not  enamerated  in  any  of  the  above  items, 
B^y  £1  per  bead  per  aonom 80,000,000—   693,600,000 

Surplus  of  inooaM  over  sxpendltnte 146.600,000 


651 


RAILKOAD   ITBV9. 


IM. 


RAILROAD  ITEMS. 

Makictta  ahd  Cx?fci^if  ATI  Railkoad.— The  aarotngs  of  this  road  for  te  yen  cud* 
tng  December  81,  18>8,  were  at  fallows: 

F*om  'ess  nj:erB I'^sntf 

•»     freight ♦. 8i4&»» 

»*    ma'l a,T3a44 

**•     expres* '.... 4i.'l*49 

te.egraph ^ 7,7^8  « 


»• 


Vxpesditares • - |un,<l78S 

Het  earulmrs • $1SA.4K17 

CoropA  <>d  with  the  previoas  year  the  groes  earriin^  show  an  iQcreafeof  tlj^li  4^; 
with  an  ti  create  in  ezpenses  of|U6,9il  76— making  a  deereaee  id  oei  earaiogi  tf 
$lS8,}t89  81.     1  he  report  says  : 

Th«*  route  from  Si.  LnuH  via  the  Ohio  and  Miecissippi  and  Marietta  and  Cindnuti 

and  B\\  im'>re  and    hi  >  roaJs  i«  th$  thorteH  to  ik€  t^mboa  d,  ••nd  the  oeW  ehstdc 

to  a  Lrge  aud  remuneratiye  i  affie  is  the  breik  of  balk  now  reqoired  at  Ciadflsstl 

OSMBaAL  KBMAaKS. 


The  difficulties  caosed  by  the  embarrassed  fiiancial  eoodition  which  has  to  a  greater 
or  less  *zient  attended  the  eompany  daring  its  biatdry,  haTe  to  a  ecioeid«rab!e  de|^ 
be«n  overcimie.  Ti  e  niarbinery  and  eqaipnoent  ar4  in  ezoellentooo<)ii ion,  and  will 
ptobably  c«inipar«t  f:iVf»rably  with  thoee  or  any  roa  i  in  Ohio.  The  ioersase  ia  rolling 
pow«r,  by  ri- building  the  fonr  engines,  heretofore  tpfeired  te^  «iU  eiiabte  the  ooco- 
pany  to  tiausport  prodi^tiy  any  amount  of  trsffij  which  can  be  reasonably  espected 
at  present. 

OrNBSAL  Balaxob  Shkr,  December  81, 1868. 


•  «  •  •  •« 


Dr. 

Ranroada<^deqntpin<«nt | 

Union    al  ri>a  *  par€ha«e: 

In  cfl^h $iS6  944  '9 

inhond* fO,  71  «l— 

Hilli>bor(/  A  CiociimUl  Hallroad 

fircha-e: 
ncai^b $10,«»4U 

In  shares  1,       ..  .tW.AO    81— 
Portvnnnth  Br*Dch pDrch«re(S. 

and  H  V.  H.  K ). 
GoDBtf  cuon— Ma  Q  line, 

•*  ClnM  ex 

"  d* -cut  on  binds  . 

^nspf  ns«  aoeonnt 

R^l  estate 

8tock«a')d  DO'do    

Itielaod  mite  la's  on  htnd.... 

B'<l8  re  elvio'e 

tJnco'leci' ''.  TfV  nn** 

Col.  and  H  •!  king  Val  ejBLK, 

pahficrliiiian, 

PrwttaLd  loss 


ll,B8\896  19 
177,M6  60 

1,8^796  8S 

F(n,0  0  00 

8,740,814  » 

1,951,110  30 

1,184.861  8U 

166,000  00 

660,i66  77 

59,065  0« 

105.5i0  80 

7,999  84 

49,900  6a 

JIO.(DO,00 
trr4,8l«  06 


Or. 

Ftr*tprer.«*sr6sftscnp $811l,?194l 

s^e  nd       '*          **  4.4agi,AHi$ 

Commoa  shares  A  tcrlp 3.0JI'i7SS 

$14,6  OiSOU 
Flr«t  mortgsfe  (sterling)  bonds 

isfueil 1,0j0u(/0(JU 

First  m  T  ffa«e  (corre  cy)  boads 

U«ii  d %Hmnt» 

First  m«>rt^a/e  (cirreory)  icrip         4,i4lol 

Sdconn mirt  aj^) b >nds S,5»00>oi 

6  *H.  V  il.lib^inds aiM.000* 

Bal  imore  loan  o  TTu  on  R.  R.,         aO,UOO(0 

pNjroU $81,406  87 

BlLs  p  yiblo  A  cash 

borrowed 841,968  18 

Dlvld'd  dneoapr* 

f   ffn•^^hlre« 7,468  50 

iBdlTldaalaocoonU..  99,680  87—      4».1Bt  ST 

itl,4J4,M^ 


$311,484,969  80 


I 


Rbpobt  obtbb  Gboboia  Railboad  AMD  Babkino  Compajit  hr  the  fiscal  year  eadiq; 
March  81, 1869: 


BiBimras. 


From  passenger  v  c<'ipt4. . 

From  f .  elKht  receipti* ^761,004  »5 


....$891789  78 

^  _  r-    761,004  »5 

Vkommallieeeiptii 81,017  01 

QfOM  earnings.... 1,104,5I{1  01 


oraBATiHo  xzncsrs.  _ 

For  coAdnetrg  trsosport*n. . . ....  $11^90  ' 


For  mutite  power  .  .. 

KormaiLt  nance  of  way 24^ttei* 

For  maluceiuuice  of  can St^v 


San.  oter  ftaWrsord.  es 


. ...  .»*. 


18691 


BAILROAD  ITBIIB. 


e9 


SXTBAOBSni AST  MXttMMm* 

Venfvt\nf  IrcoirotWe  eaglr  m  (toot  O'dinflr    tepilrp) fH^  ,fr7n  15 

N(wrftr»  and  rtbui  dinv  earB(ooiordli*t.r7rei.«lr8). 53,K4fi  6:) 

New  r  1  oad   run.  (hii1rei>n<.  rpikeft  (0T«;r  And  abote  ordlniry  repai  »>  44.(i(iu  ro 

1  :e9  n«id  D  Jiijiug  Dew  tftck,  etc 6»  7h  81 

L^^or         »*  ••  ^^ ^MKO  ft8 

Gov.  rnment  tax  on  grosa  receipts. 8,87^  »7-lT«,«68  W 

Ket  Income v»m«« • C8&2,8Ua  67 


Oat  of  wh'di  hit  been  paid : 


For  4  oew  Incono'  *e  eDgfn«»e 40,008  S3 

for  new  Height  Iiooms  andofloe  kt 

Atlnn 80,917  83 

For  hai  nee  on  new  ronnd  honio  at 

AtUuta 4,408  CO 


For  bslffnee  paid  to  a^ockboldere  In 
dlYid«naa £68,868  77 

862,80317 


TWe  resnlta  comparo  with  aimilar  onet  for  the  fiscal  jear  ending  March  Slat 
1868,as  follow*: 


Beceiptff « $],008,7S8  08-$l,104.R9!  04    Inc  $]00«797  8& 

U^Vs  end  pajmcDts,  ordinary  and  eatiaonUnafy      8I»,81i  4fr-     886,187X7   luc.     17,i!4  la 


Incroiao  net  income. 


$83,542  W 


It  is  Bomewhat  remarkable  that,  while  the  last  aoniial  report  made  fnr  every  ratU 
rm  *  otnnertiiiiif  with,  or  io  the  neigbborhood  of  the  Oeorgia  Railr  ad.  shows  a  diminu- 
tion in  i;roM  rereipta,  the  groea  receipts  of  your  road  have  iucreaaed  oyer  one 
hundrt'H  thousand  dollars. 

Other  roads  hsTe  suffered  in  the  faUlnsr  off  in  their  gross  receipts  as  foTlows :  G^o  - 
gla  C/ntrnl  lUilroai,  $212,226  67;  South  Western  Railroad,  $S6,4 08  91;  Western 
an«l  Atlaiitic  Railroad  $329,684  11;  U^con  and  Western  Railroad,  $88,972  86- 
Atisiota  and  Weat  Point  Raihfoad,  $40,406  78,  and  the  South  Carolina  Kailroad^ 
t^1044  61. 

The  V  ctfase  in  travel  amounts  to  $88,424  60,  in  about  equal  proportion,  the  local, 
viih  the  throu|jrh,  showing,  I  thio«,  a  more  prosperous  condition  of  our  i-e^  pie. 

The  TfcTt  nne  from  freight  has  in  reased  $67,s72  87  OT^r  the  earnings  of  that 
department  for  the  last  year.  This  increase  is  derived  meekly  from  through  bu»hiese, 
resulting  mainly  from  our  improved  eonnectioLS  and  arran^ementa  with  the  West, 
sod  the  i  created  fa  ilhi<w  for  the  transit  of  freight  through  the  city  of  Augusts. 

Coodenaed  ata'emc-ntof  the  c  nditioo  of  the  Georgia  lUilroad  and  Banking  Cum- 
paoy,  on  the  Slat  of  March,  1869,  the  end  of  the  £)aocial  year  : 


TS. 

The  road  and  its  onillt $4,^6,000  00 

K&le«a'e        114,698  66 

l^kiDg  honre  and  lot 8fe,0U)  Oj 

Roui  expenses  A  expenditaria 

lortliemsd 88f  ,C90  10 

Ucidetital  e  penaes  and  ealarlea  18  li8  16 

lQlere#toi.  bo  6* 29,638  68 

U .  8.  uz  on  oivldend  No.  49  and 

SO  16.896  80 

Tiix  paid  State  of   e<  rg'a 1,16152 

)Iata\I#  oi  band  for  ruad 77,616  44 

»lockorTatioQ«  mads 1,097,887  VO 

BoDd«  of  Taviona  roada 7(<,400  00 

Diicon  ted  notes. 2.6^9  11 

Aaaectment  on  a  ode ....  262  60 

Bhl8^ceivab]e 16,664  10 

D«eby«ttbercorroral'nB •  11,170   0 

Noteaofb'nkainAogaaU 19^»29  98 

Cub 129,7  6  26 

•l,8H,966  61 


CB 

Capital  stock *. f  4,l.w,ooo  o<> 

Profltandlots 718.a*^  68 

Income  lron«  Railrrad l,Wi7.«82  99 

TraDeportat*oii  of  the  malls  ....  31,819  61 
Interest,  discoiiDt  and  premium 

account 17.451  61 

Dl  ''idends  on  atccks 81  ,M«.i  ea 

Sertaceount l.St»K  66 

*  onds  of  this  crmpany 6f'9,i  (o  oo 

Dividt  ada  unpaid 43,68i  87 

Due  to  other  corporatloos  and 

awnta.. ........ 80.89748 

U.  8.  tax  retained  on  coupona 

^P»W.. 1,228  69 

PepoBlts 8.»->^9  26 

Circnlatlon ^^ 110,996  08- 

$8,8R6,988  6> 


■<f4  RAILROAD  ISMMB*  [My, 

Ths  Eavsas  Pacific  Boadw-— The  report  for  186S  foniialiM  the  IblUivug:  Ttu 
compaDy  bas  440  25.100  milt-e  in  opfratiiD,  with  depot  property,  improfemeoUiod 
cqaiproeitis  thereon.  At  the  begMiQintc  of  the  year  tiui  main  lioe  wae  io  operaivc  to 
old  Cu>ote  etatioo,  8S5  niilea  •rem  State  iioe.  Juoe  14,  the  road  vae  opeLed  to 
HoDumeut,  885  miles;  and  August  16  was  ofooed  to  Sheridan,  near  the  Korth  fork 
of  the  Smokey  Hill,  4o6  mile^. 

Id  oper.ttioD  January  1,  IStiS  : 

6t4te  line  t » Coyote «.., « mUct.  335 

l4*'avtnW(>rthKiiincki tl  S 

Wyandoie  -pur  ...         I'lA 

bUieLiueto  KiiLSisClty l.Ti) 

TuUl ViOJS 

Added  iluring  the  year  *. 

Coyote  to  Sht  ridan • ,        19 

•JolAl    4I9.U 

EAUMNQS   AND   KSFEirSKS. 

The  f  nowiD:{  table  gives  an  exhibit  of  buMoere  as  compared  with  1867: 

1867.  1869. 

AT>*iage  length  cf  rode  operated 228  45.100         403  S8.1ID 

BAaniNOB. 

Piom  GoTernment  bQsmess $511.86^04  848Z.M)<8 

CommorcUl       '*               1.0n.tj68  44  l,2«slh5» 

C*  ntr  ct  .raMrebht SS0«8R8  14  14S.«413 

Mi  idccl  hneoas  sources 48«69S  14  13,4(131 

T.ifa  earnings ^ $!,8^8  aW  76     $l,MC!,l€l  rt 

Operaiing  ezp  Uses       ..      1,«S7,6!8  66        l,i«84.4»4 » 

Net  earnings  360(S,S35  07    nSn^OTO 

Per  cent  expeases  to earDings...  ....  ; 66  4.100  M  tt.ioa 

Earning' per  mile « $4.7:$€3 

Operaimg  expenses  per  mile S^SiAdi 

Nttearnings , $i,ld6$6 

The  items  of  ezpeosea  were? 


Con  >  net  ins  transportation , $SitS^^^ 

Motivep  ''er  4(4,30T9) 

Mviuu-n  .nee  of  cars 6a,0i5« 

Main tcuti  ce  i.f  way S31«(«£944 

General  exj(>eaaes • 59,4£i$S3 

TB.iTEL  AND  TBAVFIC. 

The  total  of  passeogers  carriad  waa  109,882—69,718  westTrard,  ftiid  40,619  etit- 
ward.     Of  the  fc^rmer  10,094  were  immtgraota  settling  io  the  State. 

— The  rontract  for  puttiog  down  the  iron  on  the  Burltogtoni Cedar  Rap-ds  an'I  Hio- 
netota  Hailroad  hue  been  leL  Track  laying  will  oomimeoce  at  Borlio^;too  and  Ceiar 
Rapids  about  the  \tx  of  Jane,  and  it  is  e]^pected  to  haye  the  whola  Une  (160  oui^O 
complete  i  frru  Burlington  t.>  Waterloo  by  the  let  of  lanoary  next.  Hie  enmpany 
bae  already  purchased  5,000  toce  ol  iron,  lour  locomoUTea,  and  a  number  of  flat  cvs. 

— The  Dubuqae  and  Sioux  Gity  Ritilway  will  be  completed  darinip  the  preeeet 
season.  On  y  one  husldred  aud  thirty -hx  mJes  are  left  between  the  East  aod  Vest 
ends  of  the  track,  and  of  this,  thirty  miles  from  each  end  will  be  in  operation  belbrr 
the  Ut  ot  J  )y.  Ten  thousand  tons  of  •iroo  are  coming  forward  from  Scra-itoo,  Pk, 
via  Oiwe^o  aod  the  lakes,  as  r<)pi<l  y  as  possible,  and  the  entire  work  ia  pr^'igrmttng 
wiih  a.l  the  energy  that  meo  and  mo;.ey  •eao  common  :*. 


1869 1  RAILROAD  rrcus.  65 

CucAoo.  Rook  Island  A  Pacifio  R.R. — The  aonnal  report  for  the  year  ending 
March  .Sift  Bhowe  the  following  : 

T>e^TO?'«>arnliie«  forthe  yPM  amount  to........ $5,831,079.75 

1  lie  opt  rating,  icf^al  ezpeQ»68,  taxes,  &c,ard « , 2/>2S  8^0.61 

Le-svln?  net  earnings $2,7  8,099  14 

Paid  dmieods,  tatere«t and  Peoria re))t , S.'i60^.39 

Sarplas  earnings  for  the  year $445,678.85 

Tr;e  pprceiitige  of  operating  expeost's  to  f  AroiDgs,  including  locil  expenses  and 
taxes,  is  48  2  -100  per  cenr, 

11)6  rtrcentao^e  of  operating  ezp*  n<es  to  earnings,  lesA  ).<cal  expenses  and  taxes,  is 
43  il3-100  per  cent. 

T}\"  profit  aod  ]o'S  acconnt  skows  a  cr  dlt  balance  for  tbe  yeir  end*Jii(  Aorll  l.$t,697,S14.0S 
Deduct  oividcod  paid  April  10 7Ji<,U0C.0U 

Total $86^S41.03 

Or  a  f>arpla8  of  a  little  over  6  per  Cf  nf. 

Tb  teport  estimates  that  tho  company  wtil  require  the  sum  of  $3,448,1 20,  to 
m»'tft  the  p.tyments  iahing  due  the  next  thirteen  m  iiilis,  as  follows  : 

P'c<!9urth    Bri-'geCompriny  dnc  JaDflary,  1870,  enarrtnteed  by  this  CompsDy $400,000 

H«>  dMif  tbe  Chicrtgu  dt     ock  IpIhu')  Railroad  Company  dae  Jaiy,  1870 l,497,u(K) 

Ou;.^  1. 1 0  t  uf  baLding  n  w  bridge  over  ibe  Missirs  ppl  river  at  tbe  oty  of  Rock 

i  Infl 800,<X)0 

X-  vv  f  V.  2h  bmldinga  and  addiilunal  track  m  the  cUy  of  Chicago 7T  •,  1 M 

N<.w  tqa  lament 581,000 

Toul $8.418,U0 

THe  hil  oee  sheet  sbo^s  the  company  had  00  hand>  and  available,  the  ^follow- 
ioi'  itema,  Apnl  1  : 

Ci^hiB  '  rifiUat Treasurer's  hande $1477,046.09 

bui  recev  bid ^ *<^8».07U.00 

'''oUl     ... $1,  6f),1l5.08 

From  whic'j  fhoald  be  deducted  trie  dividend  paid  April  10 f  781,115 .08 

M  >re  the  da^e  f  r  which  this  r«>port  w  s  made  (April  I)  the  oaost  of  this  balance, 
together  with  the  curre  t  eami*  g^,  have  been  expende  I  in  paying  the  final  estimates 
ci  t  e  c  •  tr-  ctors  aod  other  ^xpcn-*e8  incidental  to  building  and  preparing  f  ir  oper- 
ator ^  the  tifw  portion  of  the  roai  betwefs  D'-s  M  ines  and  the  Missouri  rivi-r.  bo  that 
thf'C'itupMny,  after  providm^  for  the  pnyment  of  the  July  interest  on  their  bonded 
iQ  i:bt4'(tn*'8<».  will  be  virtually  out  of  C4»h. 

)o  riiice  these  necesftary  fu  •  Is,  the  company  will  either  have  to  report  to  an 
hfrtaste  of  its  capital  stock  and  the  sale  of  the  same,  or  a  further  isane  of  its  mort* 
g^^t'  bun  a,  either  or  both  of  which  it  is  fully  autho  ized  to  do. 

Tbc  Irdiana  RaiLaoAO  LAW."At  the  recent  8'-8<^ion  of  the  Indiana  Legislature 
an  i<iipf>  tant  till,  aothoriaing  counties 'in  i  townships  to  aid  in  the  construction  of 
raflr  kiU,  wae  pasaeJ,  auU  is  now  the  law  of  the  Stat«.  Its  most  important  provi  iona 
ar«  ufl  ftitlowe ; 

Whent-ver  ooehnnlrod  freeholders  shall  petition  the  County  Oommissionera for 
anappropri  tion  to  aid  some  organic  d  r*iiroad  company  to  construct  th»'ir  road 
tb'>  tL(h  tir  in  the  c«>unty  to  nn  a  lonnt  nameil  within  tbe  petition,  a  d  "ot  exceedi<>g 
tvo  ptT  c«  nt  of  the  tazablee,  as  shown  by  the  last  dop  icate,  the  Ojmmissioners 
are  t<«  on.er  tbe  polls  opened  upon  a  il  ly  by  them  app  inted,  of  which  four  weeks' 
cut;c^  u  1 1  be  given  by  public ttion,  for  tbe  vot-'r<«  ot  the  county  to  vote  upon  the 
'Q^j-ict.  [fa  majority  of  the  votes  ci^t  ure  m  favor  of  the  appropriation,  then  the 
C 'tucui-i-'i.Hiera  are  to  levy  a  tax  at  their  en  uinr  June  ee-^sion  to  raise  the  money; 
bat  ib.j  tax  in  (jne  year  cannot  (•xceed  «)oh  per  cent  of  the  taxables,  nor  can  the  ai  1 
Tot>^i  tocsich  road  exceed  two  per  cent  t^iereon.  When  the  money  is  collected  the 
<^Q']titf  cin  ritber  take  stock  in  the  road  and  and  pay  when  it  U  subscribt*d,  or  a 
')<n;\tt  >n  can  he  made  by  th>'  C  •  '•rai-*«ioner!)  to  $til  in  its  co>iitru  tion.  If  tbe  m  mey 
19  *'o  Mted  payments  ean  be  made  en  y  after  the  road  is  locate  i  and  work  upon  it 
'ioQ«  aud  paid  far  to  an  amount  e(|ttAi  to  the  donation,  nar  can  more  than  iifly  pur 

5 


?6  OOMMSROZAL    OHBONIOLS  AND    BIYIXir.  [^^9$ 

month,  than  at  its  commeocemeDt ;  there  has  been,  howerer,  •  neeessary  eartall- 
meot  of  the  operations  of  the  smaller  class  of  specolators^  and  heoce  the  aggregala 
trao^actioDs  for  the  moo'h  fall  materially  lieiow  those  for  the  same  mooth  of  last 
jear«  ihe  total  sale 4  at  the  Stock  Exchange  having  been  821,294  «hireB,agaio9t 
1,183,114  shares  in  June,  1868.  The  bosioess  has  been  very  mach  r^oafioed  to  a 
few  stocks  affected  by  schemes  0  consolidation,  especially  New  York  Geotral, 
Hudson  River  aod  Michigan  Boathern ;  while  the  general  lisi  has  been  rem^k- 
sbly  qaiet. 

Clatses. 

Bank  shares 

Railroad   "  

Coal  "  » 

Mining      "  

Improv'nt"  IV?© 

Tefe^rapb**  

Bt«am8h!p" 

Bzpr*8sJbc" 


1888. 

I88B1 

1.650 

1.666 

978,ue4 

604,QOi 

S,3)S 

8,8I< 

».U4 

aa.«w 

IS,*:  10 

7.660 

si.m 

14.945 

89,7^6 

88.S1S 

51,8;!l 

85,^:88 

»  •  •      • 

Kt,Mi 

1,104 

• 

4JB 

MS 

»J«i 

•  •     «  • 

44.4M 

•  •  • 

1MB 

Sil.M 

Total— June 1,183.114       89%SM 

SLoe  Janniuyl 10,817,6111     7,844488  ....       M13,4tT 

United  States  recorities  have  naturally  been  heavy,  under  the  conditioo  of  tb 
money  market ,  the  only  sustaining  e'eaient  haviog  been  the  weekly  pnrcba  e^  of 
the  Government.  Gold  has  been  depressed,  the  price  havii-g  dedioed  ationt  %i 
from  the  opening  figures;  and  the  prices  of  bonds  abroad  have  not  correspoodi'glj 
advanced ;  on  the  contrary,  Five-twenties  were  the  same  at  London  on  the  30  h  si 
on  the  1st.  There  his  been  little  or  no  foreign  deman  1  for  oood^.  the  chao^ 
position  of  the  Alabama  qnes  ion  having  checked  the  demand  from  Ki<gliA 
in  vectors.  The  stiingency  of  money  has  prevented  the  active  specolative  bojiag 
which  usually  occars  in  the  latter  half  of  June,  in  anticipotion  of  the  demand 
for  the  reinvestment  of  the  July  interest;  while  the  fears  of  a  money  pintchan 
naturally  induced  a  cvrtiio  amount  of  selling.  Under  Ihe^  adverse  cosdiiio  s  of 
the  market,  it  is  a  remarkab  e  tvidt-nce  of  the  strength  of  onr  national  tecuriiks 
that  prices  should  have  been  mdintained  with  such  eteddtoess  as  appears  froo 
the  following  daily  qaotations 

The  daily  closing  prices  of  the  principal  Government  eecurities  at  the  Xew 
York  Stock  Exchange  Board  in  the  month  of  Jane  as  represented  by  the  latos 
ale  officially  reported,  are  shown  in  the  following  statement : 

raioxs  OF  aoTzaaxnnr  saoinuTxsa  at  nw  tobk. 

Day  ot  r-6'#,  1881.-^ . 6V,  (5-90  yra.)  Coupon .  ^i.^* 

monih.  Coup.    Res.  l$6i     1861  iHtS,  new     N»7.  'r«.     Cpft 

1 lUH    1«K    ntH  ll-^H  1«>      l*»  '«V  1*.^ 

8 l^a       lUii    117K  U6%  119H    ll^X  11»k' 

8 1«       117)^  IIBX  ll»J*    lli»X  li«»5<  !«• 

4 117  l«tW    117  lUX  IWJi    IWH  ll»X    >*^ 

6 1«X    IHM  llbX  1«       lls»X  •  -.   1*^'^ 

7 ItiJi    117X  I8«X    ll'H  11^X  »»        -"^X  IMX   1^ 

8 lilj«    inji  117^  \Ufi  1««IC    1  9H  ...       »*'^ 

9 121X  117H  in%  in>tf  ii8>i  1I9X  11*?*   liwc 

10 117       Wil^    inK    UtiM,    ll^K    11»X    ^^^ 

11..      117       l*i)i    n  K    IWX    1»9J«    U»H    Il»)<   »?> 

u i*»K  117     mn  iH'X   J*»^ 

14>  ••>••■•••••  •      ••••    ••*.«•    ••*•      •      »        ...••      ISItJfc     11 176     *  »•         I  Iw  J^     tlwf^      •••••     •  *■     ■ 

15 UHX  1«X 1»»1<  "'•X  JJ^ 

16...  WH  11«>*  l»Ji  U6X  H8X  V9H  IV*H    '-*^ 

17 116X  1«5C  11  X  11  X  "•«  H»X     !*• 

18 laiJi  li^^  117X  H8X  1»»X  iwx    J"J 

19 191  UIH  117  lUH  119  ..  .        IJS 

21.  ,.. Hi  11«H  llJJX  IWX  n9S  tl8X   i^ 

99 191X  1«X  111X  lW>t  1W«  i>»X    ;  — 

9«.  I«l3i  117  19  X  UttJi  li7X  11»¥  l»X  ..  ..     f^ 

U 191  IWX  W«  114X  1*»X  ItSX    l'^ 


less] 


OOMMIBOIAL    CBROKICLK  XVD    BXVIKW. 


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mx  in     iw       .  ..   iwn  iw     nfJi  vyx 

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laweti HI        IV'X  1*IK  1 '■)<  tl7X  nil  ll«x  118!t  lUJX 

1««I. !««    in  1M«  1I8M  1  BX  nil  UIIH  IWM  MKK 


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;ti.   Low.    ClD(.   Omd.  UXgh.   L  w,   C 


Tbr  fullowiDK  table  will  ^bow  the  Dpeninj;,  hi)(aeat,  lowest  aod  clt«iiig  prtcea 
01  ftll  the  railwBj  and  niscellaDeoiiB  fiecDrities  qooled  the  aiNew  York  Stock 
GxcfauDge  daring  the  monthe  of  U.17  aod  June,  1 869  : 

Rsllniail  stock*—  Open.  Hleti.   Low.    Clo*.   Opao. 

AHoo  ATTreBiQt. HS         £1         £8         ft)         ill 

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ChloKO  A  Alloc .  lei       1M       i:«       Ui       UT  let       IIHU  isu 

dii  1)0    prer. leo       181        KVit    IHU       1S«  liO       IBi  180 

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CltT  .  *  t^U«burg_. WX     MK     W        mix    lO'X  Itt-X     wx  :oi 

da    Col., tin  iTiai WX     I^X      «BX     WX      IB         tBX      t^  14 

Del..  Luk  A  Weilcrn IIR       IIHX    HB       HU       IIT  IIS       JIB  na 

DDbnone  AHIoiucIl} IISX    HIX    HO       14       I'M  :u3       lUe  lin 

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do  pr«f.  US      ISO       lis         ItO  

BMtnlbal  A  St  JoHph lis      lao       liiji    ]M      lio  iss      htm  Ur>" 

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J52       }«J<    J"       '"X    lfl2>*  IBBX    IB«X  IM 


1111  noli  Central   lU       liB       1<B       14DX  i4«X  1*7 

JoJIel  A     talcago. BB  VB  vo  w 

Long  Iplai.d SB  SO  SU  BO 

lAkeUiora lOSX    HI       108       HI  11<X  in  lUIX  lOTV 

do         AMIch-HonU] lOi  luHX  IWU  ig.C 

Hu.  *ciiiciii.,iat 11       n      11       n  vav    ux  m  a« 

"       *d     "    8         8            8          8X       SX       bX       8X  «V 

HIchlean  Ceotnl 118       liSX    1^8       lit  IS]  IMw  IIS  183w 

do        8.  AN.Ind. 108V    li8«    I'fi       ]18X  118K  IIB  10;x  l.ilS 

Miliraiikea  *»t.  Pnol T8X      W«      "X      ■"X  Ti-X  M  T'H  w2 

a-                   dopref. B7X      WX      M         Bl  Bl  MX  81X  W2 

Korri-AEaw^ Bl         Bl         M         SI  wX      MM  W  MX 

New  Havm  A  HuUbrd 110       HO       llu       liO         ^ 

VowJcraer  ' 11       1)T       HI       llT  111  l«8  183  IW* 

do          C«atr«l 1  IX    IM       HI       "BX  117  ISIX  Wl  108 

ii«wyorkCmt™i iTix  iMJT  nvx  IDS  mx  wx  i-«  luu 

do          AM.BaTen 180       140       ISO       140  184  lli  ISB  iSr 

«•                do     urip IM       Ut       110       US  UI  UB  IMM  IMV 


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68 

6t 

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11 

8X 

11 

MK 

18X 

81^ 

84 

84X 

7 

S 

•  •  •  • 

•  •  «  ■ 

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8^ 

88 

81^ 

a)< 

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43li 

481^ 

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800 

850 

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lUtf 

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109 

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108 

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1« 

78  OOUICXRCIAL    CHRONICLK  AND    RSVIXW.  [Jsljf, 

Norwich  A  Worcester 104  105  104  106  106  106  106      101 

Ohio  ^b  Mi8«is4ppi >i3X     86^     c2H     8)^  85|(     87        38       «]£ 

do  do        pref    70^     7BX  '78;^     7BX  10        10        7U       7S 

P»nama 8«^  835  8>iO  80O  800  9jO  S83      »5 

Pitish.,  Ft.  W.  AChica. 140  1&»J^  HO  156^  156V  1^9  15<j»    135^ 

BeadloK:     ObX  1<'1X     95        W)i  100^  1U09^     96^    f*% 

K  me,  W.&t'ffdeoBb'K 120  125  18J  185  1:15  li5  IsS      m 

Toledo.  Wab.^Wetterii 78j^     78)^  18         17V  77SC     77|(     6»X    Q 

do        do        dopiet 70        8KM  79        8SX  88        88        80       U 

HlBcellaneons^ 

C  ntnl 66 

Camberland  Coal 30X 

Del.  «  Uud  *aualCoa1 18u 

y  n  Byiva  ia 

Wiik-bdr  eC  al 5 

PaclflcMAil 98 

Boatoa  Water  .  ower 16 

Caston OxK 

BrtiDswick  CitT 9 

Maripoaa 81 

do       l»tpref 

do       prcf. 4Afi 

Qalcki^i'ver 80 

V  eet.  Umun  Telegraph 4H)i 

Ma  hattaoQ  0 880 

BanJierii  &  Brokers  Aa4 106 

Exprees— 

American 

Amr  cau  M.  Union 41 

/kdams       - 68 

Umted  Stat'iii ..  68 

MerchaDt'BUnloa  ... 15X 

Well0,  Farxo  &  Co Sbh     9bJi     Zi)i     81X     80K     885^     S9Ji     SI 

Tbeg<ll  premium  has  flactuated  between  139t  aod  136^,  opeoing  at  13S{ 
and  eloijiDg  at  137^;  which  in  aboat  2  poiota  below  the  raoi^e  for  the  sanx 
iDODth  of  last  year,  and  aboat  1  poiot  higher  IhaD  in  Jaoe,  1867.  The  pre* 
domiuant  tone  of  FpecolatioD  has  perhaps  been  in  fayor  of  Ligher  t^garee, 
based  mato  y  upon  the  coarse  of  the  foreign  trade  muyem  nt  for  the  last  few 
months.  1  he  cunditioo  of  the  money  market,  in  iocing  very  high  ch'irg*8  lor 
carrying  gold  hat  held  in  check  specnlative  operations;  and  eome  wbo  have 
lonj(  be  d  beivy  amounts  for  a  riie,  have  become  sellers,  with  the  hope  of  boyiog 
back  shoald  the  market  become  more  booyant.  The  supply  coQ^iog  opoa  the 
market  has  been  aboat  92,500,000  more  than  for  the  same  period  of  last  yesr, 
being,  as  wil  appear  from  the  subjoioed  statement,  Sll,614,(:00 ;  while  the 
withdrawals  lor  export  and  customs  dut  es  has  been  910,419,000.  or  81,195.000 
below  the  supply.  Since  the  opening  of  the  Pacific  Railroad  tiie  record  of 
arrivals  of  California  treaf^ure  is  necessarily  incomplete,  ioasmucii  as  a  eon* 
siderable  amount  comes  by  rail,  of  which  no  accessible  statement  is  kept. 

The  following  formula  will  show  the  movement  of  coin  and  bullion  at  the  port 
of  NwW  York  daring  the  month  of  June,  1868  and  1869,  respectively : 

GCNBEAL  MOVBKBNT  OF  COIN  AND  BDLLIOK  AT  RBW  TOkK. 

15)68.  1860.  Increase.  Decm» 

Beeelpts  nrom  California %  8,931,884  IVIJM      a^'n&.f^T 

Impone  of  coin  and  oallion 640,9  8  i85,Gfi7      

Com  interen  paid 1,  79,749  8,lSl,6«A  1,861.986 


Total  rerortedsapDiy $6,S8S,9C6    $3,614,V60    $. 


Bxpons  of  colnand  LuMon. $lU,9ri6,6«8    fI^7t,U8      f9v8M^4tf 

Coatunu  datiee 8,900,096       8,817,810       641,114 


Total  withdrawn $19,160,6:8  $10,419,848    $ 

£xceB»  of  withdrawals 18,816,738       6.894,%8I      ~£^•B,8S8 

Specie  hi  banks  ini.roaeed ....      1,906,007     1,906,007       

»*        *'        decreased 10,lii7,78S         l^lfl.W9 


Derived  lh>m  unreported  ioaicea $2,707,984    $8,100,891   $5)888,487 


iseo] 


JOtnUTAL  OT   BAlTKIHe,   CURRBKOr,  jIKB   riKATTCX. 


Ill 


,.  a  !*.«  It 

..  B  U8H  11 

..  B  i«M  It 
.10  t«K  li 

.11  134     II! 


«-<i:.^4iy.;; 


<  ISSWjlSXM 

*  ■   HJj  1S8X 

OlWK 
.  I  W.l».)« 

{ i«yju  i»tj« 
i  ;*;k  iWK 

.    «■«  138!( 
W  138}.-  188 

V  l»!li!l3]K 
:>l  WTKIlSSal 

Kim   |is*h; 


Wed  ctdtj 

Thnrsdaj 

^\iiiSi*r '.'■"■'.'■'■ 

VxAuiuiii'.'..'.'.. 
rnin...l381...  . 


-  -    |»10     1«« 
,,  I84X  iai«|ui}i|iOT« 


rbe  lolloitiQg  exhibits  Ilie  qiiouiiiuiis  . 
13  the  principal  Eurr.pr^n  markets  daily 


New  Yiirn  (or  bnukera  fiO  di 
I  the  month  ol  June.  1^69  : 
(GO  i»Ta)  AT  niv  iobk. 
Anuterdmm.  BrDmen.  HimbDrg. 
eentFror  centanir  eeutibr 
Horln.  rii  dnJer.  M.  baaeo. 
40J<®10«    Igi^STttW    86?i(a»'>«    1 

4  JiSiOX    1o«®T8M    Sft-if----    - 


&)^wia;i  iu«ja7i 


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11  Stim 

11  giijS 

11  ft»71W 

11  ®Tl2 


11  aiij 
•a  S11J 
Ti  Sni 


«)X9«i)t  TBKaiB^f  nxo»»  laxonu 
4iMauK  iDKOat     WKOMM  nxan 


JOURNAL  OP  BANKING,  CURRENCY,  AND  FINANCE. 


BetDtiu  of  tbe  Sew  York.  Pblladelpbii  >Bd  Bostoa  Buka. 
B«low  ve  give  the  retaraa  oF  tbe  Banks  of  the  three  cities  einci 


.  Ma,a^8^i      M,£'8.b^      34.£ia.iM      iue.484, 


latitf  ti'.'.'.  *6^mt,t  B     ta'.>iM,iirj     8<i2w,H«     mr.ioi.ies     ai,o-'ee..iv     ei'.iuliul 

Jumirn...  Mi411.10>       11.1M,US       BU)»,1M       1B(I,MS,«U       MMI.UB       U>,)IIK^j^ 


r  DANKINO,  CDBRBNCT,  AKD  FIKAVOE. 


['•'!■, 


•'Isnlin: 


t»!(US.444 
*!,»  7,140 


M.tch ......       »8i.08n,8M 

Uircta  18 lai.''n.SSs 

nirc'i  !0 SSS.OBe.Wl 

M>r  hsi SK\no«,E'-> 

Arm    s. »6i,ifl3,ns 

Aprl  lO  ....  Jwm.wt 
Ap'll  n  ..  »S,lH4tlM 
April  M «IT.»I18,0T* 

Mij  1 »el^*B8.l"0 

Mat  f. MA.4W.S71 

MiJlS «W,Jl^,Kfl 

Milt' no.tis.M! 

WtJ  .» *T4,WB,4ai 

Jan.<  6 t1.vnB.IS0> 

iuneil *J',lMfl.7W 

juDFie i».Mi.si« 


Jjnuhryll B:  B41.»»; 

jHouarr  IS W1W.7SS 

Jinn  irn tt^.l.aii 

P..bn'>7l 6S.'l,»Bia 

r.brnarT^ a».»1U.tlS 

nbu  rj!S 6*.y»,ll»l 

F.bt  inU U,4  t(.i4« 

Manbl U.U1>1 

M>rc    - ».«;.(J10 

Mm  his 61,1'IIJll 

Harcbn El.Stx.4iV 

H>nb«i Man.  OU 

April  • twm.xM 

Jlpnil* ...  M,Tin.l«« 

.ab'Iiiii ii,iTO.im 

Wu   a M,SlO.S8t 

■Sii- ol,B»^6So 

ifcijn. B<,i88,t« 

UivM GI.afil.7M 

M  jsi »».sio,fl;4 

jSmh:;*^"...!!"!^!  b»,8U),(N8 

JaB«» BS,«tl.m 


8>,8;fl.i'i» 

3I.OU.B  1 
Sa.uTM»3 

88,Bv«.8  * 

ss.«-».»w 


1'».';m.4M 


L.TaidV  &g.d(«^-r^ 

fl»,ffl4.PM  «.rM.<» 

Ki,Mn.ivT  '.e  .nijtii 

6(18«,.M  M*,-;..n 

*i,'m»|«*1  »V  ^,-,( 

BI^T'4,n4  ni.Ti<.ot 

4s.4»uj«  ir;  aoi 

ts,M4.n  B1^'t,el 

Bi.OKi.  ts  tn.vs.f4 

B.Bw.Mie  -n^.m:** 

B«.4»,'Wt  T  1,-M>.1 

W.iat^'TS  »l, -<.s:i 

H.BO'.tBC  MtT«L«« 


iM.iM.u4i  a<.a«.4«i 

11W,6(«.'(»  E0,>«lt.K3 

l«>..tI4,   10  4S.B]a4!« 

4(tl,774,a»  41i,lK,9M 


tM.iil,trlt        >ICi.»  -II 


1T4.11S 
I'A.SIS 

iBi.4ai 

Ks.iue 


Data. 
Jho    174.. 

j»S!l^  is: 

Feb  wry  8. 
Febm^iji; 
F.bnwrjras 
Mircbl.... 
March  H.. 
Hare  .  IB.  . 
MwchM  .. 
U-fh»  .. 
Ap'li  B...- 
>prlll«.... 
AiiillW...' 
AirilW  ... 

►  ay  1 

M«ylO 

nljn""' 

».jll.  ... 


|'.»M4ii      ~iii.B-ss.as4 

8,070.844  1l.at4,700 


ii,SBi.iia 

ii.Bis,4n 
ixfKfim 


40,sn,74t 

41;  4T'siil 


(Capital  Jan.  I,  ISU,  S41,M0,00O.) 
oaDi.  Specie.     Lwi'T 


Depoalt*.  CItn 

taT,B3s.7irr  sa 

S8.(»«JV1  «. 

si,7n.i«a  K.K-" 

sbm:,747  *s.h*  I 

40,t«8.4ia  K.m>' 

89,<M.B  1  B.1  'kK^ 

«.TB«,7  1  M».ra 

Bn,SrLSI4  l\W<'> 


atMP.'Xi 

94,>«i,Tn 
at,wi,a7i 
s^am,'>oa 
at.nB,n> 

a7.4CT,8VI 


IT  H  R 

lERCHANTS'    MAGAZIJIE 

0  0  MM^RCI  AL«    gRE  VIE  W 


AUGUST,     186  9. 


OHS  IMPORTS  IDD  EIPOBTS. 

Ws  caDDot  Bjtnpsthize  witli  the  disposition  shown  in  some  quarters  lo 

underrate  the  importsQoe  of  our  foreign  trade  returns,  as  an  index  of  ilie 

balance  of  wwoanta  between  our  own   and  foreign  conntriea.    The  trade 

statistics  of  the  country  are  now  placed  in  charge  of  a  special  bureau,  and 

test  attiunable  accuracy.    It  ia  true, 

some  items  of  importance  in  our 

r  iastance,  as  the  movement  in  bonds 

)ld  by  immigrants,  and  the  amoiiijts 

interest  pa/able  upon  foreign  ca|>i[Hl 

.  upon  our  impoTtHtiuna.     Our  com- 

rever,  adbrds  no  reason  for  rejecting 

at  moTemenls  which  constitute  four- 

•ther  nations. 

n  to  indicate  that,  while  onr  imports 
important  deorease  in  our  expoTls, 
le  balance  was  continued  up  to  abont 
were  enlarged  by  free  ahipmenta  of 
exhibit  a  moderate  decline.  Retunu 
kiker,  in  charge  of  the  Biirean  of 


82  OUR  IMPORTS  AND  XXPORTB.  [^«^t 

Statistics,  enable  us  now  to  form  a  close  approximate  estimate  of  th« 
course  of  the  foreign  trade  for  the  first  nine  months  of  the  past  fiscal  yeir, 
t.  e.,  from  July  1,  1868,  to  March  31, 1869. 

We  present  the  following  statements,  compiled  from  the  official  retnnut 
including  specie  in  both  the  imports  and  exports,  the  exports  being 
reduced  to  gold  value  in  the  Government  statement  so  as  to  compare  apoa 
even  terms  with  the  imports,  whioh  are  always  entered  in  specie  valoea : 

(1 .)  IVFOETB  Ain>  KXPOBn  OF  TBI  UNITVD    STATKr    (tPIOn    IHOUIDCD)  VOS  TB  nSl 

MOHTB0  VVOINO  MABCB  SI,  18^9. 


Imports. 

186,^9  916 

Auk.',    "    84.6S9,797 


Jnly,  1868 $85,^9916 


Aug., 

r^ept,    "    84,528.775 

Oct,     "    38,897,546 

NOT^    "    a8,908,MO 

Total  imporlB— nine  monthB 


Ispoiti. 

Decn  1608 |tt,ue.i?i 

Jan.,  1889 a]i,r.S,«M 

Feb.,    »»    ^.^     ja.J'R.iiS 

Ma^d^"   60,1901:4 


#*— Bzporto— Chdd  Tilne — t 
DGm.ejqporta,       Bfr«zporn, 


prodncdand 

sold.  BBdeoid. 

Jnly,  1868 1)8,746,864  $l,««^.<n 

Ang.,    " 39,749,787  1,15B,« 

Hept.,    " 17,741,801  1,S».« 

Oct.,     " 98,464,419  l,f«,S3 

Not.,    " 18,866.795  l,Osa.«; 

Dec,     " 88,701.960  l,64^.w: 

Jan.,  1869 87,666,615  1,13161' 

Feb.,     " 89,S4a888  l«r-6» 

March,*' 94,188,687  8»*8,dl 

TotalB-nlne  months $8i7,983,«l  $15,9i».4a 

Addro-ezportB..... 16,919,468 

Total  ezportfr-goldyalne $918,858,154 

Later  reports  bring  the  movement  down  to  the  dose  of  ApriJ.  Hit 
imports  for  that  month,  aie  stated  at  152,176,828,  and  the  exports  at 
142,607,341  in  mixed  currency,  while  the  re-exports  are  given  at 
12,080,851,  principally  in  gold  value.  Reducing  the  exports  for  tlii 
month  to  gold  value  we  should  have  the  following  as  the  trade  movemcc; 
for  the  ten  months  ending  April  30,  1S69  : 

(2.)  ncrOETS  ABD  BXPOaiS  OF  n.NITID  STATIS  FOB  TBIf  MOSITSB  B2CDUIB  AVBIL  SO,  18S1 

Importf^  fp^eU  indudtd. 

For  nlnemontba  ending  Mirch  SI,  1869 $88a;,S9^5n 

For  month  of  AprU,  1869 dUTSOi 

Totallmporti— tea  months , 

JSxportt  and  r4-€3gi»rts^  ipecU  Uidnidtd, 

For  nine  months  ending  March  31, 1889 $K3,SBUS4 

For  month  of  April,  1869 


Total  exports— ten  montha $8llL9U8l 

(8.)  BBOAFROIAnOB. 

Total  imports  for  the  ten  months $98,^5,61 

Total  exports  for  the  ten  months tOMMiXM 

Bzcess  of  imports,  gold  valne •  flT,ttt4T7 

4.  Import  and  Sapoftifnr  im  mmilU  mtMn§  April  80, 1868. 

Imports,  specie  included,  gold  value ^!^9f>!!! 

Exports,  specieincndedfgoldTalne 


Excess  of  exporcs.  gold  vtlue fsM,06 


1869]  ova  nrpoRTS  and  szportb.  83 

The  statifltieal  results  here  preaented  are  not  such  as  could  have  beea 
desired ;  and  but  for  the  large  increase  in  the  imports  at  our  own  port 
and  a  proportionate  decrease  in  the  exports  both  of  produce  and  specie, 
for  some  months  past,  we  should  have  been  disposed  to  question  the  accu- 
racy of  the  official  returus.  It  appears  that  while  the  impcirts  for  the  ten 
months  have  reached  |356,700|000,  the  exports  have  been  only  $279^ 
700,000,  showing  an  adverse  balance,  upon  the  trading  account,  of 
(77,000,000  in  gold. 

This  result  is  the  more  remarkable  from  the  fact  that  the  period  covers 
the  export  of  nearlj  our  whole  surplus  of  cotton,  which  this  year  realized 
very  high  prices,  and  the  shipments  of  which,  for  nine  months  out  of  the 
ten,  amounted  to  497,500,000  pounds.  In  nearly  every  other  article  of 
export  there  has  been  a  material  decrease,  the  net  result  being  that,  for 
the  ten  months,  the  exports  are  $25,232,000  in  gold  value  less  than  for 
the  same  period  of  last  year;  while,  on  the  other  hand,  the  imports  for  the 
same  period,  are  152,469,000  higher.  The  trade  movement  for  the  cor- 
responding months  of  1867-8  shows  an  almost  even  balance,  the  exports, 
as  will  be  seen  from  table  4,  being  $689,000  in  excess  of  the  imports. 

There  are,  however,  other  items  which  require  to  be  added  to  the  debtor 
side  of  the  account.  Our  interest  account  has  now  become  a  weighty  one. 
It  is  very  generally  estimated  that  over  $900,000,000  of  United  States 
bonds  are  now  held  in  Europe ;  on  which  the  annual  interest  amounts  to 
about  $55,000,000  in  gold;  while,  upon  other  miscellaneous  stocks  and 
bonds  held  abroad,  the  interest  and  dividends  cannot  amount  to  less  than 
tlO,000,000  in  gold,  making  a  total  of  interest  payments  to  Europe  of 
t65,000,OO0  per  annum.  Adding  the  proportion  of  this  item,  say  $52,* 
000,000  for  the  ten  months,  to  the  adverse  commercial  balance,  we  are 
found  to  stand  debtor  to  other  countries  about  $129,000,000  on  the  ten 
months'  transactions.  The  freight  account  upon  our  imports  and  exports 
is  by  no  means  unimportant,  as  two  thirds  of  our  trade  is  done  in  foreign 
bottoms ;  but  this  is  an  item  too  indefinite  to  admit  of  estimate. 

The  main  contribution  toward  the  liquidation  of  this  balance  consists  of 
sLipmente  of  securities.  As,  however,  there  is  no  other  record  of  these 
remittances  than  such  as  exists  in  the  private  accounts  of  the  shippers,  it  is 
impossible  to  present  any  accurate  statement  of  this  movement.  We  have 
tnken  some  pains  to  ascertain  the  views  of  prominent  foreign  bankers  upon 
Lbe  amount  of  this  item,  and  as  those  firms  are  accustomed  to  oompare 
estimates,  their  opinions  possess  considerable  weight,  and  may  be  regarded 
a")  very  nearly  correct.  The  average  estimate  of  these  parties  does  not 
exceed  $100,000,000,  for,  the  ten  months  under  review  representing  about 
(72,500,000  in  gold.  This,  too,  probably  is  an  extreme  estimate  ;  and  it 
is  proper  to  remark  that  it  exceeds  the  fi^^ures  suggested  by  firms  who 
hare  sent  oat  a  large  proportion  of  the  whole  exports  of  securities. 


84  OUR  IMPORTS  IAD  SXP0ST8.  [Au^t, 

Seme  allowances  should  be  made  for  the  fact  tbat  a  certain  amotmt  of 
our  imports  are  consigned  here  on  foreign  account,  and  that  the  remit 
tances  agmnst  such  conBignmentfl,  after  allowing  for  losses  and  chargs 
are  sometimes  considerably  below  the  value  at  which  the  goods  vere 
entered  at  the  Custom  House.     But,  on  the  other  hand,  it  is  to  be  con- 
sidered that,  in  some  cases,  the  amount  realized  upon  this  class  ofimpor 
tations  exceeds  their  invoiced  value ;  and,  indeed,  it  is  reasonable  to  sup- 
pose that  the  consignments  would  not  be  continued  from  year  to  year  were 
there  not,  upon  the  average,  a  profit  to  the  consignors.     Nor  is  it  to  be 
overlooked  that  there  is  a  certain  extent  of  under-invoicing  importations, 
in  order  to  reduce  the  aggregate  duties  upon  them ;  in  which  cases,  tbe 
remittances  exceed  the  value  *  entered  at  the  Custom  House.    Bat  again 
on  the  other  hand,  there  is  an  average  profit  upon  our  conmgnmeDts  ot 
products  to  other  countries,  which  may  be  taken  as  setting  off  the  profits 
upon  foreign  conaignments  to  our  own  ports.    Upon  the  whole,  tbeo,  it 
would  appear  that  the  only  items  really  necessary  to  be  taken  into  \ia 
account  are  the  imports  and  exports  of  produce  and  specie,  the  indebted 
ness  accruing  in  the  way  of  interest  upon  foreign  capital  invested  here, 
and  the  shipments  of  securities.    Above,  we  have  presented  the  figure 
representing  each  of  these  items ;  and,  if  the  estimate  of  the  exports  o 
securities  can  be  accepted  as  approximating  the  truth,  it  would  follow  that, 
at  the  close  of  the  ten  months,  there  was  a  net  balance  against  the  cons* 
try  of  about  160,000,000  in  gold.    Thb  may  seem  a  very  nnde»rabie, 
not  to  say  dangerous,  condition  of  accounts.    It  is  not,  however,  tbe  6r«t 
time,  within   the  last  four  or  five  years,  that  we  have  found  ourselves  ia 
such  a  position.    For  the  first  two  years  after  the  close  of  the  war,  cor 
imports  ran  constantly  very  largely  in  excess  of  our  exports ;  yet  we  tbea 
found  it  practicable  to  settle  our  balances  by  remittances  of  securities. 
Assuming  that  the  European  money  markets  are  open  to  receive  car 
bonds  to  as  large  an  extent  as  during  late  years  ^f  over  trading,  there 
would  seem  to  be  nothing  in  this  adverse  balance  to  cause  immediate 
uneasiness.    Under  the  circumstances,  however,  it  is  impossible  not  to 
feel  some  solicitude  as  to  the  present  [disposition  of  European  eaptalists 
to  increase  their  investments  in  our  securities.    The  latest  advices  &(HD 
Frankfort  represent  a  reaction  as  having  set  in  upon  th»  Oontinentil 
Bourses  from  the  late  speculative  excitement,  .and  that  the  markets  are  well 
supplied  with  our  bonds;    how  far  this  may  prove  to  be  tempwafr. 
remains  to  be  seen.    During  the  remaining  two  months  of  the  fiMad  year 
it  is  likely  that  this  adverse  balance  will  be  decreased  somewhat  throsglL 
itcreased  exports  of  breadstufi,  as  our  imports  are  now  on  a  rsdacedscsfe* 


1869.]  THE  FUTCnUB  PRODUCTION  01*  tfOTTOV.  85 

THE  FUTUEB  PEODDGTION  OF  COTTON. 

BT  B.   F.  NOXmSl.* 
PAST  ACCUUVULTIOlf   OF  WBALTH  FROM  THB   FRODtTCTIOIflr   OF  COTTOK. 

During  the  ten  years  1851-1860,  the  crops  produced  in  the  cotton- 
bowing  States,  (cotton^  sugar,  tobacco,  rice,  &c.,)  not  consumed  at  home, 
lefl  a  surplus  of  proceeds  from  sales  amounting  to  about  $1,200,000,000, 
an  average  of  $120,000,000  per  year,  which,  less  the  amount  required 
to  be  expended  beyond  their  borders  for  the  comforts  or  luxuries  of  life, 
should  have  been  so  much  added  to  the  reproductive  capital  within  those 
States.  If  one-half  only  was  thus  required,  the  other  half,  or  $60,000,- 
000  per  year,  should  have  been  put  to  profitable  use. 

Throughout  the  Southern  States  some  internal  improvement  was  in 
progress,  chiefly  in  the  form  of  railroads.  In  some  States,  as  in  Georgia, 
these  works  had  becQ  largely  extended.  Cheaply  built  and  economically 
operated^  they  generally  proved  to  be  profitable  investments,  capable  of 
rapidly  repaying  the  loans  incurred  for  their  construction,  which  in  many 
cases  covered  a  great  part  of  the  cost. 

A  large  amount  of  banking  capital  was  well  employed,  but  this,  when 
not  owned  abroad,  was  chiefly  the  product  of  the  commisions  and  other 
charges  upon  the  produce  of  the  country,  and  not  to  any  considerable 
extent  drawn  from  the  accumulating  capital  of  planters. 

The  capital  which  had  built  the  few  cotton  and  other  factories  and  the 
machine  shops  had  also  accrued  chiefly  from  charges  upon  the  produo- 
tlunsofthe  country.  What,  then,  was  done  with  the  $60,000,000  or 
whatever  other  sum  represented  the  true  annual  gains  of  agriculture  in 
these  States  ?  The  statistics  of  population  show  pretty  clearly  that  a 
great  part  oi  it  was  expended  in  importing  slaves  from  othsr  States.f 

PRXSEHT   AKD   FUTURB  UTCRBASE   OF   WEALTH   IIT   COTTON   STATES. 

When  considering  this  subject  in  its  economical  aspect  only,  special 
tweets  bearing  upon  individuals  or  classes  are  to  be  disregarded  for  the 
general  results  affecting  the  whole  community. 

Population  is  wealth.    Money  sent  from  Alabama  to  Virginia  to  in* 

'Tease  the  laboring  power  of  Alabama,  even  by  importing  slaves  at 
^2,000  each,  added  in  some  degree  to  the  wealth  of  that  State.    But  if 

laborers  of  equal  productive  power  could  have  been  introduced  without 

expending  any  thing  for  them,  the  capctal  expended  in  the  other  case 

would  have  been  saved,  and  the  community  would  have  gained  its  use 

in  some  other  form  of  productive  power,  as  in  tools,  machinery  or  ani- 

*  T).\%  u  uken  ttoti  adTanced  theets  of  Mr.  Noarae*t  report  on  cotton,  as  Commlseloner 
toth^Pwia  Unit  rial  Bxposlrim. 

*  Se  AOdaeon^B  ''  Ch^tn  Gottoa  by  Free  Labor,"  page  80,  anl  DaBow*e  AntlyeU  of  the 
dn&u  of  1850  qaoted  in  tlie  farmer. 


86  TBI  nrruRE  pBODironov  or  cottov.  [^^^ 

mal  labor,  with  which  to  supplement  and  increase  the  yalae  of  nuunul 
labor.  To  the  whole  people,  or  the  State,  that  is  just  the  difierenee,  in 
the  investment,  between  importing  a  slave  and  importing  a  free  labortr 
of  equal  capacity.  There  are  other  differences  to  the  State,  scarcely  len 
important  in  an  economical  view,  all  in  favor  of  the  free  laborer.  Wbt- 
ever  the  cotton-producing  States  expanded  for  slaves  above  the  ooit  of 
importing  an  equal  amount  of  free-labor  power  was  twice  lost  to  Uie 
community. 

Reckoning  the  slaves  in  the  cotton  States  prior  to  1861  at  3,000,000 
in  number,  of  the  average  nominal  value  of  $500,  equal  to  1,000,000 
full  hands,  at  11,500  each,  we  had  an  investment  of  11,500,000,000;  and 
to  replenish  this  force  a  large  sum,  much  needed  for  other  uses,  was 
anuuallj  drawn  from  the  gains  of  those  States. 

If,  in  1860,  the  people,  by  unamious  consent,  had  declared  emand- 
pation  of  all  those  slaves,  whether  with  or  without  compensation  to  tboae 
who  had  owned  their  service,  there  would  have  been  neither  loss  nor 
gain  to  the  community,  except  as  the  change  might  increase  or  dimin- 
ish the  eficiency  of  labor  or  the  cost  of  its  maintainence.  There 
would  have  been  no  '^  annhiilation  of  property,"  for  the  whole  lalxir 
power  would  have  remained  as  before,  only  it  would  have  changed  own- 
ers. 

Precisely  so  stands  the  effect  of  the  decree  of  emancipatioo,  made  aa 
an  act  of  war,  with  this  difference,  however,  that  the  laborers  of  both 
races  were  sadly  reduced  and  demoralized  by  the  incidents  of  the  war 
which  wrought  the  change.  The  same  laboring  force  still  exists,  with 
the  exception  mentioned,  and  except,  also,  that  the  sudden  and  violent 
change  in  relations  between  capital  and  labor  render  further  lime  and 
experience  necessary  to  make  it  fully  effective. 

While  it  is  indisputably  true  that  free  labor  is  always  cheaper  than 
slave  labor,  when  each  is  under  its  most  favorable  conditions,  the  dm* 
onstration  of  that  truth  needs  more  favorable  circumstances  than  were 
found  in  the  years  1866, 1867.  The  prejudices  of  those  who  must  Qsa  it 
were  arrayed  against  it.  Scarcity  of  food  and  of  other  necessaries  of  life 
followed  an  exhausting  war.  The  sufferings  of  the  very  poor  of  both 
rates  were  alleviated  by  government  rations  and  by  private  benefieeooa; 
but  planters  were  compelled  to  supply  all  the  wantn  of  themselves  and 
their  laborers,  while  breadstuffs  were  at  very  high  prices,  and  imple* 
nients,  farming  animals,  and  their  subsistence  were  equally  soared  and 
dear.  At  first  the  freedmeu  were  not  disposed  to  woric  for  hire- 
demanded  excessive  wages,  and  afker  excepting  them,  too  ofien  r^ersd 
poor  service  -  The  crops  of  both  cotton  and  grain  failed,  more  or  less, 
in  both  those  rears  throughout  the  South.    In  some  cases  there  was 


1SC9]  VHB  TUTURB  FBODUOTIOK   OF   OOTTOH.  87 

fftiiure  to  fulfill  contracts  on  the  part  of  the  employer,  from  disability  or 
other  cauaef  y  while  the  '^shares  of  the  crop"  which  had  been  accepted  bj 
the  freedmen  as  wholly  or  in  part  of  lieu  of  wages,  oflen  resulted  in 
"nothing  but  loss"  leaving  the  freedmen  destitute  and  the  planter  in  a 
condition  not  much  better. 

It  was  not  untiU  1868,  the  third  season  of  the  free  labor  experiment, 
ihat  it  became  generally  successful  in  its  operation  and  results.  Then 
Improvement  appeared,  and  the  harvest,  abundantly  supy lying  the  peo- 
ple with  cheap  food,  leaves  a  surplus  stored  up  for  the  future.  The 
profit  arising  firom  the  sale  of  the  exportable  productions  of  the  same 
season  will  amount  to  $250,000,000 ;  and  a  reasonable  forecast  of  the 
future  sees  a  promise  of  equal  gain  in  some  of  the  succeeding  years,  the 
increase  of  quantity  compensating  for  any  reduction  of  price. 

The  annual  gain,  be  it  $50,000,000,  or  1250,000,000,  is  no  longer  to  be 
wisked  in  the  purchase  of  labor,  when  as  good,  or  better,  will  be  obtained 
without  purchase ;  yet  the  capital  must  be  employed,  and  will  seek 
investment.  For  some  years  very  little  will  be  needed  in  opening  fresh 
unds,  of  which  there  is  already  too  much  open  for  the  labor  applicable 
to  it.  Affcer  meeting  the  demands  of  agriculture  it  will  seek  other 
profitable  nses,  as  in  banking,  railroads,  manufactures,  machine-shops, 
and  the  other  active  employments  which  capital  finds  for  itself.  Prom- 
iQcut  among  the  improvements,  that  of  reconstructing  the  levees  and 
reclaiming  the  most  fertile  of  cotton  and  cane  lands  should  be  one  of  the 
i^rat,  and,  rightly  conducted,  one  of  the  most  profitable  for  the  employ- 
iTient  of  money. 

OPPORTUNITY   FOB   COTTON   SPINNING. 

Proximity  to  cotton  fields  abundance  of  water  power  and  of  building 
materials  in  healthy  localities,  as  well  as  of  fuel,  both  wood  and  coal, 
and  cheap  labor,  not  suitable  for  the  field,  begging  employment,  all  in- 
dicate the  advantages  and  certainty  of  rapidly  extending  works  for  the 
Tnanufacture  of  cotton  in  the  cotton-growing  States,  especially  for  the 
spinning  and  export  of  coarse  yarns. 

WiOIT   OF   LABOBJBBS. 

Now  that  capital  is  returning  into  the  cotton  States,  the  great  want 
•h'ro  will  be  labor,  a  better  use  of  what  they  have  and  more  of  it,  to ' 
^limd  their  profitable  agricultural  business,  yet  carry  forward  the  other 
works  which  will  be  required.  So  fistr,  the  prevailing  conditions  in  the 
South  have  not  been  attractive  to  immigrants.  Poor  crops,  dear  food^ 
id^titution  of  the  common  laborer,  and  these  evils  too  of!«n  aggravated 
in' disorder  and  violence,  were  reported  during  the  years  18G6  and  1867. 

The  pro3pe»ity  of  1808  stands  in  marked  contrast  to  the  adversities 


86  VHS  FOTtTBB  PROOUOnOK  OW  OOlfOV.  [^^>7*'<f 

of  the  two  years  preceeding.  A  similar  prosperity  repeated  insaooeed- 
log  years  untill  it  shall  be  regarded  as  the  rule  and  not  the  ezqytioB, 
supported  by  assurance  of  peace  and  safety,  will  turn  the  tade  of  oni- 
gration  freely  from  the  northern  States  and  from  Europe  to  the  eottoi- 
growing  States.  During  the  present  year  the  Pacific  railroad  hss 
been  completed  and  opened,  a  highway  by  which  tiie  Chinese  and  otiier 
coolies  or  Asiatic  laborers  may  reach  the  cotton  fields  of  the  United 
States.    They  are  industrious,  frugal,  quiet^  and  numerous. 

The  people  of  the  South,  who  are  to  be  the  immediate  benefidarisBof 
rapidly  increasing  wealth,  will  become  large  consumers  of  the  producdoo 
of  other  States  and  other  countries,  and  in  that  capacity  will  coatribste 
scarcely  less  than  as  producers  to  the  general  welfiure,  the  ezteniioB  of 
trade  and  the  payment  of  the  national  debt. 

LABOB  FLANTATIOKB   MUST   OnTK   PLACB   TO  SMALL   COTTOIT  FASHS. 

It  seems  to  be  conceded  in  the  South  that  the  large  plantation  system 
must  generally  be  abandoned,  in  the  culture  of  cotton,  for  small  holdings 
of  land  more  thoroughly  worked  under  the  direction  of  the  proprletoia. 
This  will  favor  a  more  general  industry,  more  numerous  proprietanr 
interests  requiring  personal  care,  better  economies,  and  a  coastantly 
improving  agriculture,  which  will  preserve  the  fresh  lands  in  good  fertile 
ity  and  restore  those  which  have  been  over-cropped. 

In  cotton  growing  as  in  market  gardening,  or  in  any  other  tillage  of 
the  soil,  it  pays  better  to  keep  a  small  body  of  land  (just  enough  for  a 
full  and  fair  use  of  the  labor  that  can  be  applied  to  it)  under  high  coltore 
by  thorough  working  and  the  use  of  fertilizers,  than  to  half  cultiTate  s 
larger  area  with  the  same  or  any  inadequate  force. 

Since  the  war,  experiments  made  to  ascertain  how  much  cotton  can  be 
produced  npon  a  single  acre,  have  exhibited  remarkable  and  gratifjiog 
results.  When  made  with  *'  spade  culture''  stirring  the  soil  deeply  od 
oflen,  after  enriching  it  with  guano  and  phosphates,  the  product  has  been 
very  large.  In  one  case,  reported  upon  what  seems  to  be  good  authoritr, 
the  product  of  one  acre  was  four  balei,  or  over  1,600  pounds  of  dctn 
cotton.  In  past  times  one  bale  to  the  acre  has  been  regarded  «s  a  fair 
crop,  and  two  bales  a  very  large  one  on  the  very  richest  lands,  while  half 
a  bale,  or  about  250  pounds,  was  for  many  years  a  satis&ctory  resolt  in 
Georgia  and  the  Carolines,  where  the  lands  were  badly  worn.  The  etoiy 
of  1,600  pounds  seems  almost  incredible,*  yet  it  is  no  more  in  exoes 
of  ordinary  products  than  were  some  remarkable  root  crops,— rttta4Mgas 
and  mangle  wurtzels — ^that  have  been  obtained  by  the  same  proeess  of 

•  »» Mr.  I> hiP  eye*  to  observe,  and  reports  exactly  what  he  sees.    He  iellt  mt  thit  Ij 

knowA  several  lostA'  ces  where  doable  the  msnsl  crops  taave  been  made  on  tmali  patebes, «« 
one  case  where  a  man  raised  four  bales  of  cotton  on  one  af^ie  of  jrroand,  the  wboio  aoe  d-Q- 
vated  by  haod,  no  mola  netded,  nor  aia  tiUier."— ^frad  ftom  IMkr, 


1869]  THS  TUTUKS  FRODUCnOH  OF  OOTTOBT.  89 

spade  culture.  ImpTOvement  by  better  farming,  to  get  more  cotton  from 
less  land,  is  practicable,  and  should  be  sought  as  the  method  of  true 
eooDom  J,  saying  in  labor,  in  manure,  and  all  other  outlaj,  yet  increasing 
the  income. 

B£8TOBATIOir    OF  WORK   BOILS — MIKSRAL  AND  OROAKIO   MAVURS8. 

The  vflue  of  the  calcareous  and  phosphatic  marls,  found  in  various 
parts  of  the  country,  for  fertilizing  and  renovating  impoverished  soils, 
has  long  been  known.  They  were  freely  used  in  the  older  portion  of  the 
cottoD-growing  States  with  beneficial  ^ects.  During  the  few  years 
prior  to  J  861  some  importations  were  made  at  the  South  of  various 
commercial  fertilizers,  guanos,  ground  bones,  and  certain  nitrates,  phos- 
phates, and  super  phosphates,  some  very  good  and  some  having  very  little 
value.  The  importation  and  use  of  these  artificial  manures  had  been 
greatly  extended  just  before  the  war.  The  really  valuable  among  them 
such  as  the  true  guanos  and  superphospates,  had  a  marked  effect  in  the 
increase  and  better  quality  of  the  cotton  produced,  and  tHis  was  as  appa- 
rent on  the  light  and  much  worn  lands  of  the  Carolinas  and  Georgia  as 
upon  the  heavier  and  fresher  lands  further  west. 

TH8   SOUTH   CAROLINA   PHOSPHATES. 

Since  the  war,  a  discovery  of  exceeding  value  to  the  agriculture  of  the 
whole  country,  and  especially  to  the  cotton  culture,  has  been  made  in 
the  "native  bone  phosphate,"  vast  beds  of  which  have  been  found  lying 
all  along  the  coast  of  South  Carolina  and  on  the  Sea  Islands ;  but  crop- 
pinor  out  and  most  easily  accessible  along  the  banks  of  the  Ashley  and 
Ck)oper  rivers.  Richer  in  these  phosphates  than  any  other  natural  deposits 
yet  discovered,  these  beds  lie  just  beneath  the  supersoil,  at  the  very  door- 
way into  the  cotton-growing  country.  A  description  of  them  and  of  the 
circumstances  leading  to  their  discovery  will  be  found  in  the  Appendix 
C,  in  a  letter  from  Dr.  N.  A.  Pratt,  whose  researches,  aided  by  others, 
have  opened  up  a  treasure  whose  value  cannot  now  be  measured. 

This  store  of  phosphates,  thus  prepared  in  nature's  laboratory  and  laid  up 
until  the  day  of  special  need,  contains  just  the  chemical  properties  wanted 
for  the  cotton  plant,  and  which  the  cotton  seed  had  been  abstracting  from 
the  soil.  So  long  as  cotton  seed  was  returned  to  the  soil  upon  which  it 
^as  grown  the  deterioration  of  the  land  was  slow,  for  the  fibre  of  cotton 
took  but  little  from  it.*    But  cotton  seed  had  acquired  a  commercial 

*i'  L.  Qood^le,  Esq..  Becre  ary  of  he  Bo%rd  of  Agricaltare  in  Maine,  a  writer  opon  agrl- 
^tarai  chemitftry,  wri'es  tha  :  **  I  can  conceive  of  do  reason  why  cott'^n  caltnre  inonld  not 
oMcta  exQAiutlT*  tban  ili«t  of  any  otber  africaltnral  crop  wlih  which  I  am  AcqaiiDted. 
M>«  at  It;  \be  pro  tnct  desired  i«  merely  celln'oee  or  woodj  fibre.  In  th  s  form  it  peas  sset 
^mtrkct  va'ne  oi;  we  wUi  eav,  $1(10  per  Mcre«  bat  to  re* urn  to  tbe  noil  it  ie  of  no  moro  mann« 
"^Ijf '<ia  than  ao  mnch  sawanBt  or  wood  In  any  other  fo  m,  consequently  it  m<iy  be  ezp.irted 
viui  impQoiiy  B«ei  ea  <h  a  there  ie  a  alile  product  of  seed  which  dmwa  heari  y  upon  the 
Y^' ;  DQt  thia  may  be  uci  Ized  and  all  of  yaine  to  tbe  sol  be  reiumed  to  it  Ti.e  seed  may  be 
«^nic«ted,  and  the  oil  expreased  and  i>o1d  with  no  1  isa  ol  aah  conatltnents  flrom  tbe  soiL 

*^^,^««  remaining  pos'casea  both  feeding  snd  manu  iil  raloe  in  a  high  degree.  Ground  to 
"^  iad  fad  in  conneckKm  with  com  t<rad«r  and  annual  graaaef,  (tf  no  moio  permanant 


90  THX  FUTUKB  PRODBOTXOX  OF  OOXTOV.  {A^^ff^ 

yalue  for  the  oil  to  be  expressed  firom  it,  and  for  the  rich  food  for  ottle 
and  sheep,  vhich  was  found  in  the  ''cake"  from  which  the  <nl  bad  bMH 
expressed.    It  could  no  longer  be  carted  back  upon  the  land  as  a  msaare. 
The  land,  already  worn  by  many  years  of  improTident  cropping,  hafiog 
this  further  loss,  rapidly  failed.    Some  portion  of  the  needed  restoring 
and  fertilizing  remedies  could  have  been  found  in  the  artificial  super- 
phosphates and  guanos  of  commerce,  but  these  had  become  almost  inae- 
cessible.    Often  badly  adulterated,  and  year  by  year  advancing  in  price 
as  the  demand  outran  the  supply  of  the  good  articles,  while  many  of  the 
plauting  people  had  become  unable  to  buy  them,  except  in  very  inso^ 
ficient  quantities,  there  was  a  great  and  urgent  need  of  something  to 
replace  the  cotton  seed,  and  restore  to  the  soil  those  chief  ingrediests 
indispensable  to  the  production  of  a  good  cotton  crop — ^phosphoric  add, 
or  soluble  phosphates.    In  this  emergency  came  the  discovery  of  thost 
natural  deposits. 

Already  too  much  space  has  been  given  to  the  effort  to  report  fludirallj 
the  condition  of  the  cotton  culture  of  the  United  States,  at  the  dose  of  the 

year  1868;  especially  to  exhibit  the  wonderful  change  from  its  condition 

one  year  previous,  and  from  all  the  circumstances  to  draw  a  fiiir  stat*- 

ment  of  the  promise  of  the  future  for  this  great  interest. 

OTHXR  XUFR0VSMXNT8 BELECTIOKS   OF   SKKD,   XTO. 

It  might  be  useful,  did  space  permit,  to  notice  in  detail  other  more. 

ments  in  progress  for  the  improvement  of  cotton  culture,  prominoit 

among  which  would  stand  the  valuable  experiments  in ''improvement  bj 

selection  of  seed"  from  year  to  year,  ^wajs  guided  by  rules  which  de6o« 

the  object  sought — in  cotton,  spinning  qualities,  such  as  length,  strength, 

fineness,  and  the  cohering  together  of  the  fibres;  rapid  growth  andearlj 

maturity  of  the  plant,  and  a  habit  of  yielding  well.    Intelligent  men  are 

engaged  in  these  efforts  in  various  parts  of  the  South,  and  of  their  resttlts 
attained  there  are  good  reports  from  Georgia,  Mississsippi,  and  Arkansa.*. 
One  new  kind  of  cotton,  the  ''Peeler,"  originating  in  Mississippi,  is 
already  in  market,  and  bears  a  price  25  or  30  per  cent  higher  than  aov 
other  green  seed«  cotton  of  the  same  grade,  because  of  its  superior  staple. 
"     '        '■  '       '  »'■'■'  '■  ■  '  11 1      ^ 

gniies  can  be  grown  with  Improred  msnagcm  nt,)  it  can  be  conTerted  into  meit  aad  vi' 
nnre.  and  thus  fertility  be  main  ained  or  e%t>n  increifed 

"  PhoephHtic  and  allcaline  conft  tneots  extstln  decorticated  and  cotton  eeed  In  ]aisei>n>P^^ 
lion,  its  Mh  ie  abundant,  befne  not  leys  than  1)4  or  8  pnrta  in  100,  end  of  thi*  asklSptf 
cent  is  phosphoric  acid,  chiefly  In  com*  ination  with  potaela  a  little  with  aotagneela.  u«  * 
very  little  win  1  me.  Tha«  a  ton  of  cotton  teed  cake- that  if.  of  aeed  with  the  haltotiVB 
off  and  the  oil  prf  seed  ont  c^ntaine  abc  nt  00  ponnds  of  phoephorie  add,  which  in  ■  f<^3^ 
form,  ae  phoepntie  of  potaah,  and  with  its  combined  alkaU,  cannot  be  deeaaed wath]«]|< 
that!  10  cents  per  ponnd— I  think  it  sh  nil  be  rated  hf^^her,  bat  tay I«* 

**  I  he  same  cake  contains  t)f  per  ceot  of  nitrosren,  say  190  ponnds  to  the  too,  aad 
this,  rating  It  at  what  Is  paid  lor  it  in  PeroTian  gn«no,  siy  17  centa  per  ponad, 
amounts  to.;. **" 

**  {>o  we  haye  as  the  manarlal  Talae  ef  one  tin  of  deoerticited  cotton  seed  take,  at 
least I»'« 

**  It  Is  well  to  b«ar  in  mind  that  the  larger  part  of  this  (when  th  cake  la  fed  to  stock)  voa^ 
pass  away  In  the  llqald  (!xcr<'ta,  and  nolens  the  arine  was  absorbed  or  somehow  «a  etfj^ 
thine  like  this  Taloe  would  be  real  sed.  In  the  1  ght  of  these  flicts  it  Is  eaav  to  see  bo«  «»*■ 
a  difference  may  be  occationed  by  the  losi  of  the  seed  on  the  one  hand  and  iu  ue  <■  "" 
other." 


1869]  MANUvACTURnra  at  thb  bouth.  91 

lANUFACTDBIXB  AT  THB  SOUTH. 

At  the  South  Carolina  State  Agricultural  ConyeDtiou,  held  at  Columoia* 
April  28th  and  29th,  1869,Col.  J.  B.  Palmer  was  requested  to  give  some 
infurmation  to  the  ConyeDtion  relative  to  manufacturing  at  the  South. 
In  response,  Col.  Palmer  read  the  following  verj  interesting  paper, 
which  he  had  prepared  on  the  suhjeot. 

The  advantages  possessed  bj  the  South  over  the  North  in  manufactur- 
ing cotton,  may  be  stated  briefly,  to  be: 

1.  An  abundance  of  unoccupied  water  power  in  everj  Southern  State. 

2.  A  mild  climate.  Fire,  for  heating  purposes,  is  only  necessary  for 
from  one  to  three  months  in  the  year.  Resinous  heart-pine  wood  can  be 
procured  at  very  low  rates.  We  pay  for  such  wood  delivered  within 
ooe  mile  of  our  factory,  only  tl  per  cord,  and  our  total  expense  for  fuel 
for,  say  two  and  one-half  months  in  the  year,  is  but  one-tenth  of  one  cent 
per  pound,  when  charged  to  the  manufactures  of  those  months,  while  in 
the  North  it  is  about  one  cent  per  pound  on  the  manufactures  of  at  least 
£▼6  months  in  the  year. 

^t  Wages  are,  and  must  continue  to  be,  comparatively  low.  The 
mildness  of  the  climate,  the  abundance  of  lumber,  and  the  cheapness  of 
Ian>],  enables  manufacturers  to  provide  their  operatives  with  inexpensive 
but  comfortable  houses  and  large  garden  plats.  The  country  being  an 
i^icultural  one,  we  must  soon  be  able  to  produce  our  provisions,  while 
the  manufacturiug  districts  of  the  North  must  always  depend  upon  the 
distant  West,  and,  to  some  extent,  upon  the  South  for  theirs. 

4.  Operatives.  Northern  men,  acting  as  superintendents  of  Southern 
mills,  admit  the  superiority  of  our  factory  hands,  who  are  remarkably 
frugal  and  industrious,  and  who  are  easily  controlled. 

5,  Freights  are  lower  on  yarns  and  cloths  than  on  lint  cotton.  There 
has  been  a  lime,  within  the  last  three  years,  when  a  bale  of  cotton  of  450 
pounds,  worth,  say  $90,  paid  a  freight,  from  Charleston  to  New  York  or 
Philadelphia,  of  |2  50  per  bale,  which  would  be  2.T7  per  cent  on  value ; 
while  that  cotton,  made  into  a  bale  of  400  pounds  of  No  20  yarn,  worth, 
i&j,  1136,  paid  only  60  cents  per  bale,  or  44-100  per  cent  on  value — a 
'liiTerence  in  favor  of  yams  of  2^  per  cent.  The  Southern  manufacturer 
•ATes  the  freight  on  bagging,  rope  and  other  waste.  This  waste  can  be 
manufactured  into  paper  at  the  South  more  cheaply  than  at  the  North, 
and  is,  consequently,  more  valuable  here  than  there.     Reclamation  on 

il^  packed  or  damaged  cotton  is  easy  and  direct,  and  we  save  the  bur- 
'^ensome  Northern  charges  for  storage,  brokerage,  ect. 

1  support  these  positions  by  the  following  statement  of  actual  cost  of 
manufacturing  at  Saluda  Cotton  Mills,  as  shown  by  our  books.  It 
must  be  recollected  that  we  have  employed  in  the  manufacture  of  No  20 


92  uASvwAxrruKnsQ  at  thb  bouth.  [^^Hf^ti 

yarn  only  4,000  spindles  ( Jenks  ring  traveltrs.)    Of  course,  a  greater 

number  of  spindles,  or  the  production  of  yams  of  a  lower  number,  would 

ensure  a  less  cost  per  pound ; 

Labor— Saperinteodent  .8Y ;  carding  .5ft ;  afMoniog  .76 ;  reeling  .76 ... .    2  44  eU. 

Kepair  —  Labor  and  material  (machinery  nearly  new) ■       .22" 

Packing,  handling,  Ac,  lahor  and  materials 6&  " 

General  Ezpeoeee— Watdi  .18  ;  haoling  .82 ;  findings  .20  ;  oil  .IS  ;  sala- 
ries .64  ;  miscellaaeons  .56.  •«« 2  00  " 

Total  per  pound 6.24" 

Add — Loss  by  waste  (460  lbs.  cotton  costing  $90  making  hat  400  Ibe.  of 

yarn) * 2  60  • 

10  per  cent  for  wear  and  tear  of  machine^,  chaaged  to  production,  per 

pound.... •••• •'• ...•  ...     1.26  •* 

Total  cost  of  mannfacturinfiT  cotton,  worth  2nc.  per  pound 9  im)  <• 

Freigbta  to  New  York  or  Philadelphia  .  66 ;  iosurance  .15..... 80" 

Coetcottin  per  pound 20.00" 

Total  cost  per  pound  of  Southern  yam  (Nfa  20)  delivered  in  New  York.  •  29 .80  " 
The  very  lotoeH  estimates  I  have  seen  of  the  coat  of  m&Qufactu'ing  at  the 
North  pUces  cost  of  labor,  repair,  packing,  and  general  ezpenaes  at,  per 

p9und 10  24  ' 

Loss  by  waste  (cotton  at  20c  in  Oolumbia  would  be  22^.  in  New  York ; 
460  lb?,  cotton  would  cost  $101  26,  and  would  make  40O  lbs.  yam) . .     2  81  ' 

10  per  cent  for  wear  an  i  tear  machinery 1  26" 

Total  cost  of  manufacturing  in  the  North 14  81  * 

Add  cost  of  cotton. 22  60  " 


M 


Cost  of  No  20  yarns  manafkctured  at  the  North 86  61 

Showing  a  difference  in  favor  of  the  South  of,  per  poncd     7 .01 

Both  using  the  same  qua  ity  of  cotton. 

Deduct  comm'sions,  cartage,  Ac 2  01  * 

.And  we  have  a  net  profit  to  the  Southern  manufacturer,  provided  he  sells 
at  the  cost  of  Northern  productions 6. 00" 

A  manufacturer  of  cotton  yams  from  Mancbester,  England,  after  look- 
ing at  our  books,  told  me  tbat  we  manufiictured  cheaper  than  they  did, 
by  about  the  dififerenoe  in  ralne  of  currency  and  gold.  That  is  to  saj, 
that  the 

Cost  of  labor,  repairs,  packing  and  general  ezpettsea  was  with  them,  gold.  6.24  cts. 

Add  f  >r  differaoce  in  value  of  gold  and  currency • 1.76  **• 

A nd  we  have  in  currency • 6.99  " 

SstimatiDg  cotton  in  Liverpool  at  24e.  and  the  waatn  (460  lbs.  oottoo, 

worth  |K8.  making  400  Ibj.  yarn,  would  be 8  0*)  * 

9.99  " 
Wear  and  tear  of  machinery » •.•••     1.26  * 

11.21  ■ 
Add  coat  of  cotton 24  CO  " 


And  we  hare,  M  eost  of  No  80  yam  manufiictured  in  England •  S6.26  " 

n^^^m  ..^ik^v    ie„  jnxna,  as  heretofore  shown    . , 29.00  « ts. 

^nce ••'..     1.60  " 


ms  delivered  in  England 80.60  " 

f  Southern  yams • 4  76  "| 


1869]  lUJrUFAOTVRIKO  AT  TKB  tOVTH.  M 

But  no  estimate  is  made  of  the  brokerage,  ^c,  in  Liverpool,  or  of  the 
freights  and  charges  on  the  cotton  from  Liverpool  to  Manchester.  Southern 
>arEe  could  be  shipped  to  the  continent  of  Europe  at  about  the  same 
rates  as  to  Liverpooly.  while  English  yaiiis  would  have  to  pay  freight 
from  Manchester  to  the  continent.  These  additional  charges  on  the  cost 
of  English  yams  being  oonsideredj  I  think  it  would  be  quite  fair  to  infer 
from  the  foregoing  that  we  could  send  our  yarns  to  Europe,  and,  selling 
them  at  the  cost  of  producing  English  yams,  derive  a  net  profit  of  at 
least  Ave  cents  per  pound. 

In  support  of  the  figures  I  have  given,  and  the  conclusions  I  have  drawn 
from  them,  I  mention  the  fact  that  at  no  time  within  the  last  three  years 
would  we  have  been  unable  to  command  from  our  Northern  commision 
houses  (had  we  chosen  to  ask  for  them)  advances  beyond  the  total  cost 
of  our  yarns.     Can  any  Northern  or  English  manufacturer  say  this? 

Estimating  the  average  crop  of  cotton  at  2y500,000,  bales  of  450  pounds 
each,  and  the  price  here  at  20  cents,  and  we  have  as  the  amount  received 
by  the  South,  1225,009,000.  Manufacture  this  cotton  into  yarns,  and 
sell  at  cost  of  Northern  or  English  production,,  and  we  have,  afler  deduct- 
ing all  foreign  charges  (net  price  per  pound  84  cents),  1340,000,000 ; 
aod  for  waste,  which  would  be  worth  for  paper  stock,  if  manufactured  at 
the  South,  (2  per  bale,  $5,000,000 — $345,000,000 ;  showing  a  gain  to 
the  South  of  $120,000,000 ;  and  if  we  estimate  for  a  receipt  of  say  3  cents 
per  pound  over  cost  of  foreign  manufacture  (and  our  experience  would 
more  than  justify  it),  we  have  a  further  gain  of  $30,000,000.  In  all 
$150,000,0000. 

The  average  production  of  yarns  last  year  throughout  the  United  States 
was,  per  spindle,  62.17  pounds ;  the  average  number  of  yam  manufact- 
ured, 27| ;  the  total  number  of  spindles  was  about  6,048,249  ;  of  these 
the  Northern  States  had  5,848,477,  and  the  Southern  States  only  199,772. 
The  average  number  of  yam  manufactured  at  the  North  was  27f ;  pro. 
duction  per  spindle,  50,57.  The  average  number  of  yam  manufactured 
at  the  South  was  12|;  production  per  spindle,  140.37. 

These  figures  are  based  upon  the  reports  made  to  the  National  Asso- 
ciation of  Cotton  Manufacturers  and  Planters.  It  is  probable  thai  many 
of  the  smaller  mills  in  the  South  were  not  reported.  My  calculation  is 
l>a9ed  upon  an  average  production  per  spindle  (ring  traveler)  of  87 
pounds,  and  average  cumber  20.  To  spin  9,50d,000,  bales  would 
require  11,494,253.  spindles.  The  calculation  will  vaiy„  according  to 
^iDd  of  spinning  done  and  machines  used.  11,494,253  spindles  would 
giTe  employment  to  250,000  hands — ^principally  females,  from  ten  years 
ot  age  up,  and  small  boys.    The  average  wages  of  operatives(big  and 


^  ItAKUVAOTtRllTO  AT  THE  BOtlTR.  [AugtUt^ 

little)  in  oar  mill  ia  1142  82  each  per  annumy  whiofa  would  gi?e  aa  th« 

gross  amoixnt  paid  for  wages  per  anaum/nearly  136,000,000.   And  tbal, 

too,  paid  for  labor  that  would  nearly  all  of  it  not  only  be  otherwiie  on* 

employed  in  adding  to  the  wealth  of  the  country,  but  be  a  poaitiTe 

burthen  apon  the  country. 
Where  weaving  is  done,  the  number  of  operatiTea  and  amount  of 

vfHf^  pHid  will  of  course  be  much  more. 
It  must  not  be  supposed  that,  because  these  figures  show  that  it  would 

require  about  twice  the  number  of  spindles  now  run  in  the  North  to  sj^ 
xep  our  entire  cotton  crop  at  home,  that  the  amount  of  capital  required 
>rould  be  double  that  invested  in  cotton  manufactures  in  the  Nortk, 
Mid  therefore  beyond  our  reach ;  for  but  a  comparatively  small  amottnt 
icf  Northern  capital  is  invested  in  spinning.  The  most  of  it  is  in  weaving 
dyeing,  printing,  bleaching,  dsc.  Spinning  ia  comparatively  simple,  and 
eomplications  commence  where  saving  begins. 

It  must  be  evident  to  every  business  man,  that  all  our  cotton  will, 
sooner  or  later,  be  manufactured  here,  at  the  place  of  its  production.  If 
done  now,  by  association  of  planters  and  other  Southern  people,  additional 
wealth  is  secured  to  ourselves  and  to  our  children :  if  deferred,  Northern 
capital  and  energy  will  inevitably  occupy  the  field. 

It  seems  to  me  entirely  practicable  for  the  planters  of  the  ootton-grov- 
ing  districts,  all  over  the  South  to  combine  together,  in  joint  stock  asso- 
ciations,  and  erect  cotton  mills  of  sufficient  capacity  to  spin  up  their  crops. 
No  doubt,  if  this  suggestion  were  acted  upon  at  once,  and  all  our  cotton 
made  into  yam,  and  thrown  upon  the  Northern  market,  the  supply  would 
exceed  the  demand,  and  los3,  at  first,  would  ensue.  My  proposition  ia 
to  ship  direct  to  the  continent  of  Europe,  as  well  as  to  the  North.  It 
would  take  us  but  little  time  to  drive  other  yams  from  the  market.  The 
process  of  approaching  the  spinning  of  our  entire  crop  would  be  gradual, 
and  would  keep  pace  with  the  gradual  withdrawal  of  our  competitors. 

The  arguments  in  favor  of  spinning  will  apply  with  equal  force  in 
fiftvor  of  weaving.  I  have,  however,  confined  my  suggestions  and  calcu- 
lations to  spinning,  because  it  is  more  simple,  and  requires  less  capital; 
and  is,  therefore,  more  likely  to  be  generally  adopted  at  an  early  day. 

To  show  the  practicability  of  this  plan,  I  submit  an  estimate  for  a 
cotton  mill  with  4,080  spindles,  ring  traveling  frames ; 

Number  of  square  feet  of  flooring,  10,200 ;  amount  of  No  20  yaraa 
manufactured  for  spindle,  87  pounds.  Total  amount  of  No  20  yama 
manufactured  in  mill,  354,960  pounds.  Cost  of  first  class  machinery^ 
with  all  the  latest  improvements,  viz. :  One  large  cylinder  cotton  opener, 
English ;  one  8  cylinder  opener,  1  beater,  English ;  1  double  lap  madiine; 
10  self-stripping  36  inch  cardS|  with  2  B.  W.  heads,  troughs  and  belts; 


1869]  THI   BXOENT  BBBADSTUYTS  MOT£USKT.  95 

2  drawing  frames  and  cans ;  1  English  slubber,  60  spindles ;  2  English 
j&cic  roTiDg  frames,  120  spindles  each ;  20  ring  traveler  spinning  frames 
204  spindles  each ;  14  reels,  traverse  grinder,  slide  rest,  card  clothing, 
governor,  turbine  wheel,  cotton  scales,  bundle  and  bale  presses,  shafling, 
belting,  bobbins,  transportation,  putting  up  machinery,  findings  to  com* 
mence  with,  &c.,  6sc.,  (43,000 ;  building,  including  houses  for  operatives 
(estifflated  by  an  experienced  contractor,)  17,000 ;  total,  150,000.  Such 
a  mill  will  give  employment  to  87  operatives,  and  will  consume  887 
bales  cotton,  weighing  450  pounds  each.  Estimated  net  profits  on  pro- 
ductions, if  sold  at  cost  of  Northern  production,  $17,748.  No  estimate 
is  made  of  the  cost  of  water  power,  as  that  would  depend  upon  location, 
ii2e  and  nature  of  stream. 

Finally,  with  great  diffidence,  but  with  equal  earnestness,  I  urge  upon 
the  Convention,  and  upon  the  Southern  people  generally,  careful  consider- 
atioD  of  the  facts  and  figures  submitted ;  and  close  with  the  suggestion, 
that  houses  of  correction  for  juuenile  delinquents,  who  abound  in  our 
midst,  and  pennitentiaries  for  females  be  established,  and  that  their 
inmates,  as  well  as  those  of  orphan  asylums,  be  employed  in  cotton 
manufacturing.  I  may  state  that,  by  the  wise  forethought  of  the  project* 
ora  of  our  State  Penitentiary,  this  was,  though  to  a  limited  extent, 
provided  for,  and  I  believe  lam  correet  in  saying  that  the  convicts  now 
manafacture  nearly,  if  not  all  their  clothing  and  bedding. 


^i^^*^^i^i0*0*0m0^^^r^^ 


THE  RBCBRT  BREAD8TDPFS  MOVEMENT. 

Oar  readers  will  remember  that,  last  fall,  we  expressed  the  opinion  that 
a  very  heavy  surplus  of  grain  remained  in  the  hands  of  Western  farmers 
^hich  they  would  have  to  realise  upon,  before  next  harvest,  at  lower 
prices  than  were  then  current.  Upon  this  view,  we  urged  the  expediency 
of  forwarding  grain  before  the  close  of  navigation,  as  best  for  the  farmer 
&Qd  the  country  at  large.  The  event  has  turned  out  as  we  anticipated, 
and  proved  the  wisdom  of  our  advice. 

The  abundant  harvest  of  last  year  is  succeeded  by  the  prospect  of 
another  year  of  abundance,  not  only  in  the  United  States,  but  in  many 
other  grain-growing  countries;  and  the  farmers,  under  the  prospect  of  this 
new  aapply,  and  fearing  that  the  value  of  their  grain  may  further  depre- 
ciate, are  pressing  it  forward  to  market.  The  amount  of  this  surplus 
may  be  judged  from  the  volume  of  the  receipts  at  the  Western  grain 
centres.  The  following  figures  show  the  arrivals  of  flour,  wheat,  corn 
aud  oats,  at  the  porta  of  ,GhicagO|  Milwaukee,  Cleveland,  ToledoJ|  and 


96  THB  RlOUrr  BUADSTUFrS  MOYXMBST.  [Augfut, 

Detroit,  from  May  1  to  June  12,  for  this  and  the  two  next  preoediog 
years: 

Flor,  bblf 64»,8«6  418,0W  tn,TE8 

"Whcat,bnfch ...,6,048,001  8,a41,4Sft         1,«».'B6 

Coro,ba8»i ,  4,lfi7.«W  8,»ia,»18         6,«1,841 

Oat9.ba»h »,0e0,686  1.904,880  1,646^ 

Total,buih iiiwuS  9,020,m         8,181,647 

We  thus  6nd  that  the  receipts  of  flour,  at  the  Lake  ports,  for  the  week 
ending  June  12,  have  been  227,762  bbls  in  excess  of  the  same  period 
of  last  year,  and  365,038  bbls  more  than  in  1867.  The  aggregate  receipts 
of  wheat,  corn  and  oats,  for  the  same  weeks,  were  3,280,989  bushels  o?er 
those  of  1868,  and  4,163,519  more  than  in  1867.  Si Dce  the  prospects 
of  the  new  crop  became  more  apparent,  the  receipts  Lave  been  especially 
heavy,  those  for  the  6rst  two  weeks  of  June  being  very  close  upon  the 
arrivals  of  September  last,  when  the  forwarding  movement  was  at  its 
height.  The  arrivals  of  wheat  and  flour,  at  the  ^ve  piincipal  lake  ports, 
for  the  four  weeks  ending  June  19th,  reducing  the  flour  to  wheat,  were 
equal  to  nearly  eight  millions  bushels  of  wheat  The  following  is  a  state- 
ment of  the  receipts  at  those  points  for  the  weeks  named  : 

1868.  1968. 

Floar,  bairels 980,158  45SJIB 

Wbeac,  bafrhelB l,ffi^987  6,664,910 

The  Buflalo  Commercial  Advertiser  gives  the  following  estimate  o' 
the  quantity  of  wheat  afloat  and  in  store  at  the  close  of  last  week : 

Biiflielf. 

In  store  at  Chicago  and  Milwaukee  91  et •.•.I,SOQ,000 

Afloat  on  Lakeh  for  Buffalo  and  Oswego  Slat. l^OMt^W) 

AfloatonCrinaU  destined  for tlde>water l^OOO 

In  store  in  New  York  Slat M^SSI 

Total ft,5«,886 

not  including  stocks  at  Buffalo  and  Oswego. 

The  amoudt  afloat  on  lakes  and  canals  is  about  2,800,000  bushels, 
mainly  destined  for  the  Hudson. 

The  natural  effect  of  this  movement  would  have  been  to  further 
depress  the  prices  of  breadstuffs  had  it  not  been  for  the  less  favorable 
accounts  with  regard  to  the  wheat  plant  which  have  lately  been  received 
from  England  and  France.  These  reports,  together  with  the  small  stocks 
now  held  in  those  countries,  their  light  imports  and  the  low  prices  cu^ 
rent  have  within  the  nast  two  weeks  resulted  in  considerable  activity  in 
breadstuflfa,  with  an  upward  movement  both  here  and  at  LiverpooL  This 
is  furnishing  a  very  convenient  and  satisfactory  outlet  for  oar  present 
surplus.  The  immediate  effect  of  this  enlarged  movement  at  the  West 
and  towards  the  East  is  quite  apparent  in  its  influence  upon  our  money 
market ;  though  perhaps  not  observed  to  the  extent  it  really  deserves. 
The  Western  banks^  especially  those  of  Chicagp^  have  withdrawn  laige 


I860]  RBDEM^rrOK  OV  BANK  ItOTEB.  97 

smounts  i>f  tsurrency  from  the  banks  of  tbis  city,  tbe  amount  received 
there  from  tbe  East,  during  June,  being,  according  to  tbe  Chicago  Tri- 
5«)M^,$6,DOO,000;  and  this  depletion,  occurring  concurrently  witb  a  demand 
for  moving  the  wool  crop,  witb  larg«  withdrawals  into  tbe  Treasury,  and 
upon  an  unusually  low  condition  of  tbe  legal  tender  resources  of  tbe 
banks,  baa  contributed,  in  no  small  degree,  to  tbe  extreme  stringency  in 
money  which  has  recently  prevailed. 

Tbe  railroads  have  received  tbeir  share  of  benefit  from  tbis  movement. 
As  appeared  from  our  last  issue,  the  gross  earnings  of  thirteen  principal 
Western  roads,  for  tbe  mouth  of  2fay,  were  $^,528,000,  against  $4,078,000 
for  Uie  same  month  of  last  year;  showing  an  increase  of  $656,000,  or 
about  12  per  cent ;  and,  for  the  current  month,  the  receipts  exhibit  a  still 
larger  gain.  Tbis  evidence  of  an  increasing  supply  of  food  products  b  a 
gratifying  indication  of  our  agricultural  growth,  tbe  main  basis  of  our 
national  prosperity.  It  is  calculated  to  infuse  a  healthier  feeling  into  our 
industries  and  to  promote  a  sounder  condition  of  general  valuer;  while 
it  also  affords  a  hope  that  we  may  ere  long  be  able  to  assume  a  position 
of  greater  importance  among  the  grain-producing  countries  of  the  world 


EEDEHPTION  OP  BANK  ROTES. 

We  have  often  bad  occasion  to  defend  tbe  National  Banking  system 
against  tbe  attacks  of  persons  who  exaggerated  its  defects,  and  overlooked 
the  vast  benefits  which  it  has  conferred,  or  is  capable  of  conferring  in 
the  financial,  industrial  and  commercial  progress  of  tbe  country.    In 
pleading  tbe  cause  of  the  banks,  however,  we  should  carefully  remember 
that  the  sjrstem  is  by  no  means  perfect,  and  that  much  remains  to  be 
done  for  its  improvement.    Of  tbis,  we  have,  during  tbe  past  month,  had 
a  striking  proof  in  tbe  spasms  which  have  invaded  tbe  money  market,  and 
in  the  exorbitant  rates  of  interest  which  have  been  paid  in  Wall  street. 
That  these  troubles  are  caused,  in  part,  by  movements  over  which  the 
banks  can  exert  little  dxtect  control,  we  freely  admit.    But  still  neither  the 
manoeavers  of  speculators,  tbe  bcking  up  of  greenbacks,  tbe  absorption 
of  currency  in  tbe  South,  tbe  over-rapid  conversion  of  floating  capital  into 
fixed  capita),  nor  tbe  boarding  of  money  in  the  Government  vaults,  would 
have  produced  so  profound  and  convulsive  a  stringency  bad  the  banks  kept 
themselves  strong,  and  bad  our  currency  been  elastic  and  responsive  to  tbe 
vants  of  business.    It  is  very  evident  that  the  monetary  troubles  of  tbe 
past  three  months  have  been  due  to  defects  in  our  financial  machinery 
rather  than  to  any  lack  of  capital.    Which  ever  way  we  look  proofs  mul- 
tiply on  every  side  that  our  people  are  growing  in  wealth  and  in  all  the 
chief  conditions  of  material  prosperity.    What  is  wanting,  however,  is 

SI 


98  BiBXMPnos  or  BiJtx  kotu.  [^"^vi^ 

a  corraqK>iidiDg  elasticity  in  the  financial  mftchinery  of  tlie  oKntrj. 
Speenlalon  and  cli^uesof  capitalisU  dam  up  the  fertilising  streiiBs  of  the 
national  wealth  and  prevent  their  flowing  equally  and  freely  and  g«sllj 
over  the  whole  field  of  the  national  industry.  We  are  voSmg  fiot 
because  we  cannot  produce  wealth  but  because  our  madunery  for  dis- 
tributing that  wealth  is  out  of  order,  inelastic,  and  not  snfficMB^j 
responsive  to  the  changing  pressure  upon  it  and  to  the  Taried  d^naads  of 
different  seasons  of  the  year. 

These  facts  all  point  to  the  currency  of  the  banks  as  the  weaikMt  part 
of  the  National  system.    When  the  cliques  wonld  make  trouble  in  tiie  kss 
market  they  always  attack  the  currency  and  their  ingwiona  devices  fer 
locking  np  currency,  and  ao  depleting  the  current  of  the  active  csiei 
lation  have  been  often  exposed*    Why  hare  no  anch  plana  ev«r  been  s^ 
in  operatioB  in  Paria  or  in  London  f    The  speculators  there  are  as  keo, 
as  bold  and  as  shrewd,  and  wield  larger  masses  of  capitaL     Why  do 
they  never  resort  to  the  expedient  of  locking  up  currency.    The  leaaoa  a 
obviona.    The  currency  of  France  and  of  Oreat  Britain  ia  daatic,  lad 
enlarges  or  contracts  with  the  seasons  with  the  activity  of  bnainesB  »d 
with  the  greater  or  leas  demand  for  money.    Our  currency,  on  the  &»- 
trary,  remains  rigidly  fiied  in  amount  all  the  year  round.     It  cos^ 
first  of  some  four  hundred  millions  of  greenbacks  and  fractional  cvreKj, 
the  amount  of  which  was  not  intended  to  fluctuate,  and  secondly  of  nad<a^ 
bank  notes,  the  outst^uiding  amount  of  which  ought  to  vary  from  t«o 
hundred  millions  as  the  mimmum,  to  three  hundred    millions  as  t^ 
extreme  amount  authorized  by  law.    The  issue  of  currency  ia  so  pro6uo ; 
to  the  banks  that  they  try  to  keep  afloat  all  the  law  allows.     If  the  notes 
of  a  bank  come  back  to  it  they  are  immediately  reissued,  and   aa  then 
is  no  efiective  arrangement  for  redeeming  the  bank  notes,  the  whole  three 
hundred  millions  are  kept  constactly  afloat,  winter  and  summer,  spric; 
aiHl  fall,  whether  the  amount  is  in  excess  of  the  requirements  of  the  co8&> 
try  or  not. 

In  no  other  banking  system  ever  established  in  Europe  or  in  this  oosb- 

try,  have  private  corporations  been  invested  with  so  much  power  over  ths 

volume  of  the  currency.    To  say  that  they  should  not  abuse  Uua  power, 

is  nothing  to  the  purpose.    The  banks  are  1,600  independent  inatitntioa^ 

spread  over  the  various  States,  and  anxious  each  to  make  large  profits  for 

its  shareholders.    The  issue  of  currency  is  one  of  the  most  lucrative  parti 

of  the  banking  business,  as  it  enables  the  bank  to  borrow  |[money  withoot 

interest.    While  human  nature  is  as  it  is,  every  bank  will  put  out  and 

will  keep  out  all  the  currency  it  can.    And  the  only  way  to  nouike  sm 

that  the  volume  of  bank  notes  shall   increase  when  they  are  uaeded  for 

bttsiaesa  and  shall  diminish  when  the  want  has  passed  away,  is  (o  make  it 


1869]  FART   07  THK   GREAT  NORTHWEST.  99 

impossible  for  the  banks  to  keep  out  their  notes  in  excess.  Tbis  is  easily 
to  be  done.  Banking  experience  has  supplied  an  effective  safeguard.  It 
is  the  safeguard  of  metropolitan  redemption.  Let  the  banks  be  compelled 
to  redeem  their  notes  at  the  metropolis,  where  in  time  of  plethora  the 
notes  are  sure  to  accumulate,  and  we  have  the  best  remedy  for  inelasticity 
of  the  currency,  which  the  nature  of  the  case  seems  to  admit. 

An  unreasonable  opposition  has  been  aroused  among  some  of  the  banks, 
a^aiDst  any  more  effective  means  of  redemption  than  one  in  use  at  present. 
We  trust,  however,  this  will  pass  away.  The  existing  arrangements  for 
redemption  are  notoriously  imperfect  and  unsatisfactory.  This  circum- 
stance offers  a  powerful  weapon  to  the  enemies  of  the  banking  system, 
which  they  are  not  slow  to  use.  In  Congress  a  large  power  is  known  to 
be  arrayed  agunst  the  banks.  Saiely  it  is  the  part  of  wisdom  for  these 
institutions  to  correct  every  abuse,  and  to  strengthen  and  reform  them- 
selves as  much  as  possible.  The  banks  must  show  to  the  country  that 
they  are  not  a  set  of  speculative  institutions,  intent  on  money*making  and 
greedy  of  gain,  but  that  they  are  depositories  and  trustees  of  important 
powers  over  the  currency  of  the  country,  and  that  they  do  not  receive 
the  rich  endowments  of  that  trust  without  doing  their  best  to  fulfil  its 
duties.  One  of  the  strongest  arguments  against  the  banks  would  l>e 
deprived  ol  its  force  and  one  of  the  most  threatening  dangers  which  await 
tbem  in  Congress  would  be  removed,  if  they  would  voluntarily  combine 
together  this  summer  and  organize  some  effective  scheme  for  centr.tl 
redemptiont  It  is  a  matter  for  regret  that  the  recent  convention  in  tliis 
city  did  not  give  more  attention  to  a  reform  which  is  infinitely  more  for  the 
true  interests  of  the  banks  than  almost  any  other  topic,  which  was  promi- 
nently discussed. 


A  PART  OP  THE  GREAT  NORTHWEST. 

There  is  a  portion  of  this  country  which  promises  in  a  few  years  to  jit  1 J 
to  Done  other,  in  population,  wealth  and  production.  It  is  a  region,  how- 
ever, now  comparatively  unknown,  of  vast  extent,  of  healthful  climate  and 
of  large  resources.  It  has  for  its  streams  the  upper  waters  of  the  Missis- 
sippi,  those  of  the  Red  River  of  the  North,  of  the  Assinneboine  and  of  the 
Saskatchawan.  It  touches  the  shores  of  Lake  Winnipeg ;  extends  far 
westward  along  the  borders  of  the  United  States  and  of  the  New  Pomin 
ion  to  and  beyond  the  Rocky  Mountains.  It  has  Lake  Superior  for 
its  Eastern  limit.  The  State  of  Minnesota,  part  of  Wisconsin,  part  of 
Dacotah  and  a  broad  section  of  the  New  Dominion  lie  within  this  re- 
gion.   At  first  thought  one  would  say  that  this  section  was  far  to  the 


100  PART   OF  THV   ORBAT  HOKTHimr.  [^*9*^t 

Dorthward,  bat  a  glance  at  the  map  shows  that  while  St  Paul  is  m  d< 
latitude  of  Venice,  the  Northern  shore  of  Lake  Saperior  is  in  the  btitide 
of  Paris,  200  miles  farther  sonth  than  London  md  700  wSHm  fntkr 
soath  than  St  Petersburg.    The  summer  isothermal  Une  of  70  degree. 
which  passes  through  the  wheat-g^wiug  regions  of  Roana  aod  throQ^j 
Southern  France,  strikes  this  continent  on  Long  Island,  bends  dowo  hto 
Pennsylvania,  skirts  the  northern  limits  of  Ohio  and  Indiana,  pss^ircsi 
(he  foot  of  Lake  Michigan  to  the  Mississippi  jnst  north  of  St  Pad,  asd 
then  sweeps  up  to  latitude  52  three  and  a  half  d^rees  north  of  Ftik 
Some  of  our  school  misconceptions  of  geography  are  corrected  b?  tbe  pfs^ 
tical  knowledge  we  acquire  in  this  day  of  enterpiise  and  actios.  It  s 
under  and  around  this  isothermal  line  that  the  rieheat  wheat^vis; 
Tegions  of  the  United  States  lie,  and  it  is  near  this  line  that  the  rontrb 
ble  development  of  the  last  few  years  has  been  made.    For  ioitaiice,ii 
1857  Minnesota    did  not  raise  breadstufEs  sufficient  for  her  own  ex* 
sumption.    Ten  years  after  her  export  of  wheat  waa  10,000,000  of  bail* 
els  and  her  production  was  14,000,000  bushels.    In  1854  she  bad  orJr 
15,000  acres  of  land  under  cultivation*    Ten  years  later  it  wis  om 
1,000,000.    In  1860  her  population  was  172,000.     In  1865  it  wKt^' 
000.    It  is  estimated  now  at  450,000.    In  1860,  Hon.  Wm.  H.  Setsi 
standing  in  St.  Paul,  the  centre  of  this  great  *^  continental  wheat  girdOi* 
speaking  of  the  broad  belt  extending  from  Lake  Superior  to  the  Ficil 
remarked,  ''Here  is  the  place,  tie  central  place,  where  the  agricoltoRi 
the  richest  regions  of  North  America  must  pour  out  its  tribota  to  tk 
whole  world.** 

Tbe  tiansportation  facilities  of  this  region  are  mostly  as  yet 
^projected."  There  is  firstof  all,  however,  the  Mtssipsippi  river,  vB 
offers  such  cheap  carriage  to  the  sea.  This  route  may,  we  thioJ^ 
regarded  as  ''finished."  The  agricultural  wealth  of  Minnesota 
one  of  the  chief  inducements  for  St  Louis  to  engage  in  the  present  ftt 
tern  of  grain  carriage  to  New  Orleans.  Its  effort  was  to  secure  a  sbtre 
that  trafiSc  which  by  several  lines  of  railroad  psssed  across  the  Sutei 
Wisconsin  and  Illinois,  and  so  sought  an  Eastern  market,  by  way  of 
Lakes.  But  Minnesota  has  designs  of  its  own,  and  hopes  to  do  its 
•business.  It  has  under  way  a  railroad  from  St.  Paul  to  Da  Lstb^ 
head  of  Lake  Superior.  This  road  will  be  150  miles  in  lesgtb. 
portion  of  it  is  done  and  the  rest  will  be  completed  daring  the 
year,  placing  Minnesota  several  hundred  miles  nearer  tide  water 
it  is  now,  for  the  western  end  of  Lake  Superior  is  240  miles  west  of  0» 
cago,  and  the  distance  of  the  centre  of  Minnesota  produetioa  is  ^^ 
nearer  Lake  Superior  than  Lake  Michigan.  The  navigation  of  ih»tn 
lakes  is    practically  limited  to  the  same  season,  for  one  d^»eods  op^ 


18C9]  THE  WESTERN   GBANART  AND   ITS   OUTLET.  101 

the  departure  ol  the  ice  from  the  St.  Marie,  and  the  other  upon  the  free 
dom  of  the  Straits  of  Mackinaw.  To  New  York  the  distance  from  the 
bead  of  Lake  Superior  is  just  about  the  same  as  from  the  head  of  Lake 
Michigan.  The  Northern  Pacific  Railroad  is  another  improvement,  upon 
which  work  is  beginning.  But  this  is  too  indefinite  yet  to  require  fur- 
ther remark.  Railroads,  east  and  west  lines,  are  started  in  the  first, 
second,  fourth  and  fifth  tiers  of  eounties  in  Minnesota,  counting  from  the 
lower  line  of  the  State.  St.  Paul  is  a  railroad  centre,  and  from  it  diverge 
nine  or  ten  roads,  all  of  which  are  designed  to  feed  the  new  road  to 
Lake  Superior.  There  is  a  road  started  to  Pembina,  of  which  81 
miles  are  completed.  Another  is  from  St.  Paul  to  the  head  oi  Red  River 
narigation,  of  which  60  miles  are  done  and  100  more  are  contracted 
for  by  the  first  snow  fall.  Another  runs  towards  Sioux  City,  and  90  miles 
are  done.  At  Sioux  City  it  will  meet  a  branch  of  the  Union  Pacific 
road  and  contend  for  the  traffic  of  that  route.  Another  runs  down  the 
river  to  Hastings,  and  has  Chicago  for  its  objective ;  of  this  20  miles 
are  done.  Another  road  towards  Chicago  has  50  miles  completed.  We 
omit  mention  of  some  minor  routes  and  projections. 

The  question  naturally  arises  how  is  the  labor  procured  for  all  these 
enterprises!  The  regular  emigrants  to  Minnesota  and  other  Western  States 
are  farmers,  agricultural  laborers  and  artisans.  They  are  not  ^  navvies.*' 
So  laborers  for  the  railroads  are  sought  abroad.  They  bring  them  over 
by  the  ship  load,  and  set  them  to  work  on  the  railroads.  They  settle  on 
the  line,  and  so,  when  the  road  is  done,  it  has  a  population  to  support 
iL  The  Minnesota  State  agent  has  been  to  Sweden  for  his  emigrants,  be- 
fore whom  he  laid  the  wonders  of  climate,  production,  free  homesteads, 
kc.  He  brought  900  over  with  him  a  few  days  since  ,  and  he  promises 
that  75,000  Scandinavians  will  come  over  during  the  present  year.  So  the 
State  grows  and  develops.  So  civilization  makes  its  powerful  conquests  of 
new  regions.  So  the  material  prosperity  of  the  whole  country  is  increased 
and  the  national  life  derives  fresh  strength.  The  remote  is  brought  near, 
the  savage  is  tamed,  and  the  kindly  fruits  of  the  earth  are  produced  in 
greater  and  greater  abundance.  This  little  sketch  of  what  one  State 
is  doing  is  but  the  repetition  of  what  others  have  already  done,  and 
the  prelude  to  even  gieater  enterprises. 

THE  WESTERS  GRINART  AND  ITS  ODTLBT. 

It  is  within  the  memory  of  many  men  now  living  that  the  centre  of 
the  wheat  production  of  the  United  States  was  east  of  Lake  Erie.  In 
the  earlier  part  ot  this  century  the  counties  on  the  Hudson  River  and 
along  the  Mohawk  were  large  producers  of  wheat.    Then  the  Genesee 


102  THS   WESTER K    GRAHAKT  AVB   IIS   OCTLVt.  [A^j^, 

Vallej  came  into  notice,  and  for  many  years  was  tbe  granary  of  tlie 
East.  The  wheat  and  flour  of  this  valley  have  not  yet  locit  their  edeb- 
rity,  despite  the  competition  of  Ohio,  St.  Lonis  and  Galifomuu  ¥ct  many 
years  the  insect  destroyed  the  crop  there,  but  its  produedveness  has  been 
now  partially  restored,  and  at  no  time  was  there  a  complete  £uinre. 
"  Extra  Genesee,"  though  often  merely  a  name,  was  still  a  brand  in  tbe 
market  through  all  viscissitudes.  The  Eile  Canal  opened  the  vaj  to 
the  West  and  made  the  farther  shores  of  the  great  lakes  as  aooesfibk 
to  market  as  Western  New  York  had  been.  So  the  wheat-groiw 
moved  westward  to  Ohio,  Michigan,  Indiana  and  Ellnois.  Another 
impulse  was  needed.  Railroads  were  buUt  from  the  Lakes  to  the  10s- 
issif'pi,  from  the  Mississippi  to  the  Missouri  and  &rther  West,  and  igiffl 
the  "granary"  receded  to  the  Westward,  until  to-day  it  is  found  bejon-i 
the  Mississippi ;  and  Iowa,  Minnesota  and  Califcmia  are,  in  propord<s 
to  population  and  in  the  yield  to  the  acre,  the  greatest  vheat-growipg 
States  of  the  Union.  In  1848  and  in  1859  the  wheat  product  of  serenl 
States  was  as  follows : 

184^  1S9. 

Pennvrlranla bosh   15,867,681  lUM,:^ 

Ohio H487,S1  15  WPT 

New  York 18.1iM1M  SfSLU 

Illinois M14,5T5  SLSSTrJi^ 

Indiana ,^ MH.45S  l«.'4v>': 

Michigin 4,9i&.88S  8.Sma: 

Such  were  the  figures  for  1848  and  1859.  But  in  1866  a  farlbe: 
change  took  place.  For  instance,  Wisconsin,  which  reports  4,000,OOi« 
bushels  in  1848  and  15,600,000  in  1859,  reports  in  1866  20,367,d:^ 
bushels,  at  a  valuation  of  1^33,914,226— a  five-fold  increase  in  cnp  ii 
18  years  and  a  nine- fold  increase  in  value.  Other  States  named  abort 
present  the  following  aggregates : 

19K.  TolaiL 

PcnnsylTan'a bueh.  10^19,6fi0  t«,0^:« 

Ohto 10,208,854  ».T8S.2Ii 

New  York 12,fiSS,4i<6  83L5&nH 

niinoU. 518,551,491  ift,lviU« 

Indiana 0,114,£6S  ll,-«^'>t 

Michigan 14,740,6£9  K^S^SSf 

Pennsylvania,  in  the  interval  from  1859  to  1866,  tell  off;  New  York. 
recovering  from  the  devastations  of  the  weevil,  gained ;  Ohio  fell  «^? 
largely,  considering  her  increase  in  population ;  Indiana  also  produced 
less,  while  Illinois  and  Michigan  increased.  Iowa  now  enters  the  U>t5 
with  a  production  of  8,000,000  bushels ;  California  shows  a  productiiiQ 
in  1866  of  14,000,000  bushels,  having  a  currency  value  of  some  |20,0tX),- 
000 ;  Minnesota,  which  in  1857  imported  breadstuffs,  had  10,000,000 
bushels  for  export  ten  years  later  and  kept  4,000,000  for  home  consump- 
tion. Twenty  years  aeo  the  wheat  product  of  New  York  and  Pennsyl- 
vania was  four  or  five  bushels  per  head  to  the  population;  noifitisbut 


1869]    *  TB8  WISTKRH  GIUNART  AND  ITS  OUTUBT.  103 

two  or  three.  Of  course  these  States  and  their  Eastern  neighbors 
look  to  these  great  Western  granaries  for  supplies;  and  thdr  confi- 
dence will  not  be  misplaced.  Directlj  west  of  Iowa  and  Missouri,  and 
within  the  limits  of  Kansas  and  Nebraska,  the  wheat  region  virtually 
ends ;  bat  it  will  expand  into  immense  dimensions  on  the  vast  areas 
of  the  Northwest.    There  will  be  a  granary  never  to  be  drawn  down. 

There  is  a  lesson  of  importance  to  be  derived  from  this  statement 
we  have  given.  These  wheat  areas  of  the  East,  and  in  this  term  we 
include  all  the  regions  eastofthe  Mississippi,  are  by  no  means  exhausted. 
They  need  but  culture  to  reach  the  highest  promise  they  ever  gave. 
The  wheat  crop  of  New  York  fell  from  13  millions  in  1848  to  8  mil- 
lions in  1859,  and  rose  then,  to  12  millions  in  1866.  The  prime  cause 
of  this  was  the  renewal  ot  wheat  culture  after  years  and  years  of  dis- 
ease. The  farmers  could  not  contend  with  the  insect  and  they  yielded. 
The  insect  disappeared,  and  again  the  fields  returned  productive  crops. 
If  land  is  h*^er  in  price  in  those  Eastern  States,  the  farmers  are  nearer 
a  market  and  they  can  compete,  to  a  certain  extent,  with  the  West.  In 
Ohio,  Michigan,  Indiana  and  Illinois,  there  has  been  a  falling  off  in  the 
average  yield  per  acre,  showing  a  careless  cultivation,  for  these  wild 
lands  are  yet  unexhausted. 

An  examination  of  the  breadstuffs  trade  of  Chicago  for  a  series  of 
years,  also  indicates  [the  growth  of  the  West  and  the  tendency  of  the 
centre  of  cereal  production  m  that  direction.  In  1854  the  receipts 
of  flour  at  Chicago  were  234,575  bbls.,  in  1868  they  were  2,276,335 
(a  tenfold  increase)  and  Chicago  which,  in  1860,  manufactured  but  282,- 
000  bbls.  manufactured  last  year  747,932.  In  1854  the  receipts  of 
wheat  were  3  millions  of  bushels,  and  in  1868  they  were  15  millions. 
Corn  grew  from  7  millions  in  1854  to  25  millions  in  1868.  Chicago 
shipped  last  year  24,800,000  bushels  of  wheat  and  flour  reduced  to 
wheat.  The  five  lake  ports  together  sent  out  53,000,000  bushels,  and 
it  is  estimated  that  18,000,000  of  bushels  went  on  the  railroads. 

The  promise  of  an  increased  crop  this  present  year  is  very  good. 
Illinois  has  recently  suffered  so  severely  from  the  rains  that  the  com 
crop  is  considered  to  be  in  danger,  all  other  sections  of  the  country 
report  good  progress  and  warrant  the  belief  that  the  avenues  of  trans- 
portation will  be  crowded  with  the  products  of  Agriculture.  For  the 
great  granary  beyond  the  Mississippi,  of  which  we  have  spoken,  the 
competition  of  transporting  interests  is  lively.  St.  Louis  has  an  agent 
in  New  York  to  engage  a  steamship  to  proceed  to  that  city  and  bring 
a  crop  of  grain  directly  to  this  port ;  Iowa  and  Minnesota  are  pushing 
railroads  into  the  interior;  Chicago  reduces  her  charge  fur  handling 
and  storing  grain.     Freights  by  rail  on  competing  roads  go  down  and 


104  TOLEDO,  WABASH  AND  W18T1RV  ItAH.WAT«  [Au^^ 

the  great  battle  between  the  rail  and  the  water  route  assames  new  and 
more  interesting  proportions.  Some  of  the  experioients  ioduoed  hy  tlui 
rivalry  between  different  routes  are  on  an  extensive  scale.  This  flte&m- 
sbip  from  New  York  to  St.  Louis  and  return,  involves  a  long  voyage. 
It  is  S^OOO  miles  of  water  against  1,0(M)  by  land.  It  is  an  ocean  voyage, 
a  gutf  passage  and  a  long  and  sinuous  river  with  all  its  opposing  cnr 
rents  and  unknown  obstructions.  It  passes  by  the  Mississippi  ato^ 
whose  hopes  have  been  of  ''Direct  Trade"  with  Europe,  and  it 
has  for  its  St.  Louis  guarantors  the  enterprise,  and  capital  and  pluck 
of  a  strong  and  vigorous  city.  As  one  attempt  to  solve  this  probkm 
of  transportation  it  is  interesting  to  all  observers.  The  world  at  laige 
which  takes  many  million  bushels  of  wheat,  com  and  flour  from  tlie 
United  States,  and  the  army  of  consumera  in  the  non-produdng  States 
no  less  than  producers  are  all  directly  interested,,  for  to  them  it  is  a 
question  of  cheaper  food. 


«k^M^«^M«tf^rf«^^p% 


^*^*^*^*^^0^mi^^^^^0^^^g^f^0^0^ 


TOLEDO,  WABASH  AND  WESTEIU  RAIIWAT. 

Among  western  railways  this  line  occupies  a  route  which  for  dtrectoeg 
between  the  Pacific  and  Atlantic  coasts  is  not  surpassed.  This  assertion 
applies  to  its  present  phjsical  relations.  When  the  Pike  County  Rail- 
road, extending  from  Naples  to  Douglasville  (opposite  Hannibal,  Mo.), 
now  in  process  of  construction,  shall  have  been  completed,  the  east  ami 
west  line  will  have  been  materially  improved  both  as  to  distance  and  gen- 
eral directness,  insuring  additional  economi  cal  means  of  transacting  U)« 
ever  increasing  business  which  the  progress  of  events  has  brought  widh 
in  the  company's  grasp.  The  section  of  the  line  to  be  thrown  oat  of 
use  by  this  improvement  as  a  through  route  (say  between  Van  Onndj  s 
and  P&lmyra)  will  be  utilized  as  a  local  carrier  ibr  a  rich  snd  prosperous 
stretch  of  country.  A  further  improvement  of  the  direct  westward  li&e 
will  be  'uade  by  cutting  off  the  triangle  which,  with  Palmyra  as  its  apex, 
baa  Hannibal  as  its  latitutidnal  basis.  In  former  times  the  coostiti:- 
ents  from  which  the  whole  route  was  formed  were  notoriously  unpro- 
ductive and  exptsnsive,  but  the  vast  development  of  the  country  throngb 
which  the  aggregate  line  passes,  and  the  improved  connections  ea$t 
and  west  already  established  |or  projected,  together  with  the  Uoioo 
Pacific  road  now  completed,  have  given  to  this  Kne  an  increased  impor- 
tance which  a  very  short  period  will  more  clearly  develope.  These ficti, 
results  and  anticipations  9re  in  marked  <».ontrast  with  the  troables  ami 
disabilities  through  which  the  several  roads  comprising  the  coinpaD/s 
present  lines  have  been  forced  to  pass.  Even  the  titles  of  the  bond  i^sa  ^ 
now  part  of  the  company'is  funded  debt,  apeak  of  f)«quent  disasters ao J 


]86d]  TOLKDO,  WABASH   AND  W8STBRV   BAILWAT.  105 

-eorganizaiioQ  after  reorganizatioD  in  each  of  the  prlnoipal  roads,  until 

K)riimoa  8en«e  and  experiance  brought  the  whole  line  ocoupied  by  the 

ixistiag    oorporadon  under  a  single  efficient  and  co-operative  organ- 

zation. 

We  have  not  space  to  recount  the  early  history  of  the  line.     The  San- 

;:itDon  and  Morgan  Company  begaB  their   experience  the  earliest — say 

oine  third  of  a  century  ago,  and  were  succeeded  by  the  Great  Western 

Company,  which  built  on  the  east  and  the  west  of  the  original  route,  so 

a  to  complete  a  line  from  the  Indiana    border  to  Meredosia,  with  a 

jranch  to  Naples — both  on  the  Illinois  River.      This  company  failings 

A  33  succeeded  by  the  Great  Western  Company  of  1859.     The  roads  in 

[udiaoa  and  Ohio  were  built  by  separate  companies,  which  under  several 

itlcs,  (now  consolidated,  again  separate,  and  then  again  united,)  had  a 

eery  precarious  existence.     Then  came  the  consolidation  of  July  1, 1865, 

which  included  two  other  lines  and  gave  the  original  roads  connection 

Aith  Quincy  and  Warsaw,  both  on   the  Mississippi,  and  with  the  great 

lines  of  Missouri  and  Iowa.    At  the  time  of  consolidation  the  lines  w  ere 

as  follows : 

Hllev. 

Toledo  and  WatMshnSallroad  (Toledo,  0.,  to  the  Indiana  Line) 843.4 

(T'-it  Weiitem  Bailroadof  ia59(lDd]anaLlDeto  Meredoeia,  Ac.)  1S2.4 

^l-\  L<ry  and  Toledo  Railroad  (Meredosia  to  Camp  Pulni) 84.0 

Uno.s  acd  boDthem  Iowa  lUilroad  (Clayton  to  Wareaw) 41.9 

Totil  coaeo!ldatcd  Une 500.0 

About  22  miles  of  the  Chicago,  Burlington  and  Quincy  Railroad 
(lea>e<l)  complete  the  company's  operative  lines^  making  the  whole 
length  of  line  operated  522  miles.  Of  this  length  ot  road  ?5.5  miles 
are  in  Ohio  and  166.9  in  Indiana,  the  remainder  of  the  total  length  being 
in  Illinois.  The  road  is  now  ironed  with  rail  averaging  60  pounds  to 
'lie  yard.  The  guage  of  the  track  is  4  feet  8^  inches.  The  reportdoes  not 
^ute  the  length  of  second  track,  sidings,  &o. 

The  amount  of  motive  power  and  rolling  stock  operating  on  the  roads 
ot  the  company  at  the  close  of  each  of  the  three  years  1866,  1867  and 
1^C8,  inclusive,  was  as  follows : 

188e.  1867.  1868. 

Womotlye  engines. .  .^.      1(«  105  105 

•  i- UiCT  aniBmokln    c  is 47  49  69 

^  a :  aad  ba 'gage  car* 87  S4  ){9 

'"'Xfrti^ht  can* 1,040  1.173  l.OTT 

▼Y^^^cara »75  405  401 

Jiiiformcar* 200  843  813 

'lt*r» 150  164  148 

<-»'*•  ?e  car*, , 45  44 

^^■nMgcAn 30  80 

Of  the  engines  47  are  coal  and  58  wood  consumers.  There  are  lOi 
stations  on  the  roads  and  11  engine  bouses.  Upwards  of  100  new  cars 
^f^re  built  in  the  company's  shops  in  1868,  and  nearly  400  cars  wer^ 
^utireij  rebuilt  or  received  general  repairs. 


10^  TOLKCe,  WABASH   AKD  I^ISmiT   RAILWAY.  [^^T'^i 

The  results  of  operations  in  the  sanae  yean  and  since  the  ooniotidiition 
are  shown  in  the  following  table: 

i865(emofl).      1S66.  tmu         im. 

Paspeaser  carn^nffB $890,96S  08  f  1,82S,84S  73  $l,s:a.ft3S  42  |l,SKu>l  SI 

Fai>ee*ifr(ra  carried 36<I685  6M,878  &S1.SU 

Freight  earnings $1,090,958  88  ta,S(»,4S7  85  $9,864,185  40  |I,HS,7«  91 

KaT  eamiig- M,O0U  (0        59,000  00        6i.Ono  (0       10,4'S« 

Xxpreas  eainlngfl 49.049  10        98,845  IT      148,886  89       88.U197 

HiBceUaneous  eamlnsfl 40,846  CO        84,';66  99        £t,«n  93       8BS8:id 

Oroeaeamisgs. $3,083,109  16  $3,717,886  99  $3,609,363  68  $4,QlS,S(r<  fts 

FroDQ  which  deduct  ezpenditares  : 

Renewal  of  iron  ana  aaperftinctnres.  $100,017  80  $941^06179  $964,919  98  |S7jOMM 

Malnteoanceof  way  andetmctorcfl 888.0i4  h6  694,006  95  6^49190  691,!^  41 

Maintenanoe  of  cars,  enginea,  ftc 1976,837  19  (66,606  78  449,469  84  489,M« 

Tranftportation  expenses 768,568  93  1,889,469  08  1,438,008  65  l,488,9at« 

Total  operat'g  expenses $1,487,438  96  $3,811,166  60  $9,'»fS,889  89  $a,88»,6»:t 

Nettineome $545,6'70  89    $906,199  79 $1,093,471  96$UA^^1> 

Nettcanila«s,pereent 9b.84  94.89  96  97  ^^ 

In  the  following  statement  are  shown  the  general  financial  traDsaeUotti 
of  the  company  as  exhibited  on  the  income  account  since  the  consoli' 
dation  of  July  1, 1865  : 

1865-66.  1867.               19)8.   ^ 

Nett  earnings  $1,451,870  61  $1,099,471  96  $l,lS3,SdSll 

bappUes  from  old  companies 102,643  6i    

Hiickinerjr  and  tools  sold ^ .....  1,810  00    

Hnking  foDd  bends  so^d 1,000,080  00    

Onn'ohdatod mortsage  bonds  sold 1,410,000  00      616,^06 

)1I.  and  ^  oath.  Iowa  B'ilrosid «i,100  QO   

Balance  f^om  year  to  year 978,599  00      491,S11h 

Total  ^ 19,664,419  95  $9,780,010  96  $3,980,1C1  61 

Against  which  amounts  are  charged  as  follows : 

Constroction,  Ac $603,974  00  $448,586  68  $30S,4S<.  Tl 

Interest  account  1,3^8,180  37  l,i89  161  88  l,S26,tii53 

Discoant  and  exchange 9'l,e41SS  1«,&0  Si        

'role-ioandWabaskH.R. Company..... 17,106  63  1,4M  98        

1 1.  and  Soath  Iowa  RB.  Company 199,807  97  

New  York  office :0,543  98       

Shk'ng  fond  bonds  taken  np ^  731,000  00  9»ajO« 

Balance  fiom  year  to  year 973,589  00  491,519  89  419,9967; 

The  financial  status  of  the  company  at  the  close  of  1866,  '67  and  '68, 
respectively,  is  shown  in  the  Treasurer's  general  balance  sheet,  aa  follovs: 

1S66.  1667.  im. 

Balance  of  income  aecovat $973,6»9  00  $491,61  i  P9  $430.M  «« 

Gen- nl  stock.  67,0<  0  ehitre^ 6,'(00.000  (lO  6,10»,000  00  W!(>J>»^ 

Preferred  stock,  10,000  eh  ifcs l,OOU,t  (0  00  1,000,(<<JO  00  \,{XOJ0  ^ 

Fandeddebt 14,.!)45,000  UU  15,4M,0Od  (>0  16,t<0B.<«}<f 

Ooapons dne and  unpaid 49,914  75  63,950  00  ItZ^itv 

Overdraft 71,790  88 


Kqnifclizatton  account 66.\726  19 

BUis payable  ..  15,500  00  ]5,4«0  00            l.SOeiW 

Total $99,118,900  47  $99,754,18r»  $a,msi:S^ 

Per  contra :  the  following  charges,  viz. : 

Boad and  equipment $19,850,000  00  $2Q,999,<HK)  00  $11551,A)0r« 

Tms^es..... 1,196.00000  1,195,009 1«      l,lfl»,<»H(n 

MaterialB and  fuel 308,«14  07  968,757  88         «7'*^S 

Sundrr accounts 1 5.5^  48  l<»,6t8  »        m*<^* 

Kqiu-llaaUon  account 70U.800  97  8457408          »*-Hil,* 

<^»ll 157,17198         116.877  43 

Tctal $99,118,900  49  $99,154,189  61  t9^»9,8i7« 


1869] 


TOLEDO,  WABA8H   AKD   WS8TXRN   RAILt^AT. 


107 


The  funded  debt  of  the  oompanj,  as  it  stood  on  the  books  at  the  close 
of  the  fiscal  year  1868,  is  described  in  the  followiog  statement : 


, — lotereet — » 

Claeees  of  bonds  Rate  Payable. 

1st  mort.,  Tol.  &  III.  RR  (76.6  m.)  7  F.&A. 

L. Erie, Wa.&Bt.L.i)R (166  0m)...  7  F.  A^. 

"  Ot.  WeBrnhR^eastofDecatar 10  /.*0. 

"  Qt.Wwt'aRR^wePt.fDecatar »^ 7  P.  &A. 

Gt.WeeriiRRoflto9(l8'i.4m) 7  F.  &A. 

"  qulncy&Tol.RR(S4m.) 7  M.  A  N. 

ill.  A  So.  Iowa  RR  (41.8  m.) 7  F.  &A. 

2d  mort.,Tol.  AWab.  RR.  (7S)im.) 7  11.  A  N. 

Wabaih  A  Western  RK(Ui6  ttm) 7  M.  A  N. 

Gt   Weat'n  RR  of  1869  (183.4  m.) 7  M.  A  N. 

Eqai' meot,  Toledo  A  Waba»h  KR  7  HAN. 

M^  Fund,  Tol  ,  W.  A  Wei«t'n  RR  (600  m.) 7  A.  A  O. 

Coiiaoia,  Tol.,  W.  A  Wett'n  RR  (500  m.) 7  Qoart'ly 


-Pr'nclpal 


Amount 

Dne. 

$90.),000 

1S90 

»,500,0<  0 

181X) 

l,t)00,(K)0 

1878 

46,0-0 

l»-8 

1.456,000 

1S88 

600,000 

1890 

8C(\'  OC 

l««l 

1.000.000 

1678 

1,60»,0IQ 

lh71 

8,5{:-0,0(iO 

1H98 

eoo.'oo 

18«3 

(called  I") 

1871 

S,700.CO0 

1907 

All  of  these  issues  are  payable  principal  and  interest  in  New  York 
at  the  dates  above  named.  The  interest  on  the  new  consolidated  bonds 
is  payable   February,  May,   August  and  November. 

Four  years  have  nearly  passed  since  the  consolidation,  during  which 
the  monthly  range  of  the  prices  of  the  company's  stocks  at  the  New 
York  Stock  Exchange  has  been  as  follows  : 


Bava>  ov  TBI  axxxiiAL  stock. 


186?'-«6. 

•^Q'y (^.... 

A'lcu.'t ^  .., 

Npiember 40    ^10 

Oct  bcr 43    d^AS 

November •*«»• 8!»    (^/^W 

lectmber..   40,ii(?/i43 

J'timrtr 42    ^^43 

Ftbru  ry 81    (T^tO 

M  Tch 81Ji(fi^« 

April 8-i    an'Vl 

^I'ly 84    (S;39 

Jane 86    (a^i^i 

Year 81    ^55 


18flft-67. 

89  &017V 
43\(rM6X 

4*  (<fM>i 

.40  (((^ii 

41  (a*45>tf 

89  ^16^ 

88  (rL4% 

84  (Tc^y 

88    ((f,AS 
41X@»7>r 


1867-68. 
46ii(?V.3>^ 

89    ^\9 

88    m'-iM. 
f8W^13 

45  (c(,41K 
40H(fi!^yo% 

4«      ^yTii 

49    (g^5a 

46  (iii5l)i 


l?r.P-69. 

4BH&^H 
49    (f?i53X 

B8>.  ('/*»)7 
64  (<fy*i'i 
B8>;(rr^59 

63S(r/>'j8 

73    (t>TvS^ 
71    ^TOJii 


34    ai>>6jtf        S8,Vi^6K        4S>«^7S>^ 


BAROa  OV  THX  PBSnilKEB  STOCK. 


1865-66.  lfe6«-67. 

Jay ^ ©....  81    (TArtl 

^'^-f^** ••-• %••• ((i>....  67>i(f&70 

^«p'ealber 60   C(f^tA  70   (t/.7MX 

^<^''>»>*-r 01    ((lyu'i  T2%Ci0l5>4 

Nov  mber 68    (i^f.8  72    Ci675>tf 

l>f«;<;Tibcr d^...  ...  (Tn.,.. 

•^^^^ry      (9^ Cf/^.... 

►e.fuary. ^..,,  qq    q^^q 

J^^fch .  (S^..,.  69    ^i>'« 

^K'i 68    ^6»i3  61>tf(ri,fy> 

f'^-'y - (^....  6«    ((r>^i7 

J*^' • >-. ^.  ..  68M(i^iO 

Yev 60   ®Qd  69    ^76;^ 


1F67-SR. 
69)^(^72)^ 

•?o;i<r^7i 

69  (Tj^nii 
62    (((^'My^ 

6i>iC">'i)a 

64  (S^fi? 

65  (ii^HH 

70  6^74 
7())i(r(>72 
69  (g^h9 
69    Q69 

61j^l^74 


1868-69. 
€9    (?^73X 
7i    (r'!i73 

73>«r;V,78 

73\C<'-T8 
70    ((<>73^ 
(1^70;^ 

(r?;7i 

(r*77^ 
((^79 
77^(L'>'50 
79    ft6H2>i 
82    (0^82 


'40 

73 

77 
78 


74    (i^2H 


We  have  made  this  analysis  more  extensive  than  ordinary,  for  the  reason 
that  "Poor's  Manual"  does  not  include  the  report  forl8G8,  although 
we  find  that  it  was  waited  for  as  long  as  possible.  A  partial  return  obtained 
fiom  tbe  company  is  all  that  is  given  in  the  work  referred  to. 


108  AGRICULTURAL  STATISTICS  OV  THB  UVITBD  XIKGDOV.    [-^H^ 

ON  THE  AGUCULTDEll  STATISTICS  OF  THB  UNITED  KIN600I  (Wm 

PAPER.*) 

BT  JAMXS   OAIRD,  ESQ. 
(Bead  before  the  StatlsUcel  Eodety  of  Londm). 

Having  been  invited  by  the  Council  to  oontinae  the  sabject  of  the 
Agricultural  Statistics  of  the  United  Kingdom,  on  which  I  read  a  paper 
in  March  Jast  year,  I  propose  first  to  consider  the  result  of  the  estimatei 
then  ofiTered  of  the  previous  crop,  the  probable  yield  of  the  last  crop 
(1868),  and  the  groat  public  advantage  which  followed  the  early 
announcement  contained  in  the  summary  of  the  returns. 

L — JSstimate  and  Retult  of  Crop^  1867. 

It  will  be  remembered  that  I  then  offered  an  estimate  of  the  result  of 
the  bad  wheat  crop  of  1867,  in  which,  after  making  deductions  for  the 
diminished  consumption  likely  to  be  caused  by  high  prices,  I  computed 
the  foreign  supply  required  within  the  harvest  year  at  9,600,000  quarters. 
The  actual  receipts  have  been  9,690,006  quarters,  between  Augufit^  1867, 
and  August,  1868,  the  date  at  which  the  new  crop  was  ready. 

But  the  harvest  was  a  very  early  one,  and  ^the  condition  of  the  com  so 
good  that  it  was  available  for  immediate  use.  The  harvest  year,  as  gene- 
rally and  properly  understood,  and  within  which  it  is  very  desirable  that 
the  statistical  tables  should  be  framed,  is  from  Ist  September  to  Ist  Sep- 
tember. Between  these  dates  last  year  the  total  imports  of  wheat  and 
flour  were  9,293,000  quarters. 

On  either  basis  it  will  appear  that  my  estimate  was  not  very  wide  of 
the  mark,  though  it  was  severely  handled  at  the  time,  and  figures  were 
put  forth  to  show  that  considerably  less  than  two  million  quarters  was  all 
we  could  possibly  receive  between  that  time  and  harvest.  The  pnc<>, 
which  had  begun  to  droop,  was  thus  again  strengthened  and  maiotaineJ 
during  April,  May  and  part  of  June,  when  the  final  fall  began  and  steadily 
continued  till  the  beginning  of  September,  by  which  time  the  drop  from 
the  highest  point  had  reached  20s.  a  quarter.  But  in  the  meantime  the 
pressure  on  the  poor,  as  was  partly  shown  by  the  statistics  of  out-door 
relief,  was  unneceasarily  prolonged,  while  it  waa  found  that  the  foreign 
supply,  which  had  been  represented  to  have  been  exhausted  by  the  enor- 
mous imports  of  the  first  six  months  of  the  harvest  year,  continued  with 
very  little  diminution  to  its  close.  Instead  of  the  1,000,000  or  2,000,000 
quarters,  which  was  the  utmost  we  were  led  to  expect  from  all  sources, 
we  actually  received  4,500,000  quarters  in  the  second  half  of  the  harvest 
year. 

*  The  flrat  paper  waa  pablehed  in  the  jono  number  o(  the  Uaaabokm  (voL  SO,  page  4^)' 


1869]  AORXOTTLTinULL  8TATI8TI0B  Ot  THB  UNITED   SINGDOU.  109 

The  economy  in  the  nse  of  bread  caused  bj  the  high  price  of  last 
year  has  proved  very  close  to  the  estimate  I  ventured  to  put  forth.  It  will 
perhaps  be  remembered  that  I  assumed  every  10  per  cent  of  additional 
price  on  the  crop  would  diminish  the  consumption  by  1  per  cent ;  and  as 
bread  had  risen  60  per  cent,  I  reckoned  the  saving  at  5  per  cent,  era 
little  over  1,000,000  quarters  on  the  total  consumption.  The  actual  saving 
is  shown  by  the  following  figures : 

Qoartorf. 

Averafre  annasl  consumption  since  1862,  inclnsive  of  seed 20,600,000 

Seed,  8^  busbels  per  acre qn.  1,100,000 

ForeigD  wheat  imported 9,800,000 

Home  crop,  9,700,000  qoarters  of  69  lb.  quality,  equal  to  61  lb 

quality 9,880,000 

19,780,000 


Saying  by  economy  in  the  use  of  bread 1 ,020.000 

This  bears  out  the  opinion  of  eminent  statisticians,  that  the  consump- 
tion of  bread  is  very  constant;  that  whatever  the  price  may  be,  every- 
thing must  be  given  up  before  bread,  for  the  very  severe  pinch  of  an 
increase  of  price  of  fully  one-half  diminished  the  ase  of  it  by  only  ooe- 
twentieth. 

11.— Wheat  Crop,  1868. 

The  bountiful  harvest  of  1868,  and  the  splendid  condition  in  which  it 
was  saved  rendering  it  fit  for  immediate  consumption,  was  a  great  relief 
to  the  country  after  the  pinching  caused  by  two  bad  harvests  and  dim- 
inished trade.  If  there  had  been  only  the  greater  acreable  produce  to 
rely  on  much  would  have  been  gained  ;  but  a  great  deal  more  than  that 
was  revealed  by  the  publication  of  a  summary  of  the  agricultural  returns 
on  19th  September.  The  beneficient  season  had  added  2,000,000  qrs.  to 
ibe  produce  of  an  average  crop,  while  the  increased  acreage  under  wheat 
swelled  that  addition  by  1,200,000  qrs.  more.  Nor  was  this  all ;  for  the 
fine  and  heavy  sample  will  improve  the  yield  and  quality  of  the  flour  by 
2  or  3  lbs.  a  bushel,  or  equal  to  one  twenty-fiflh  part  of  the  total  produce. 

The  contrast  between  the  yield  of  the  two  last  harvests,  1867  and  1868 
is  shown  in  a  very  Etriking  manner  when  all  the  figures  are  placed 
together. 

Yean  Acre*  nndcr  QnaU.y.        '^^**^?s^S?^^  «^ 

Y«»"-  Wheat  Weight  per  finehel.     pe/^J]?t-r. 

Ihs.  Qra. 

1867 8,640,000  69  9,8b0,<)00 

'68 8,961,000  63  16,486,000 

hiereaaeiQ  1868.... ..  ..  7,056,C00 

Here  is  a  difference  in  a  single  year,  exceeding  four  months,  or  one- 
third  of  the  total  consumption.    The   home  crop  will  give  us  within 


llO  AOBJCULTinUL  BTATESTIOR  OV  TBI  VNITKD  WaQVOlL    [AufUl^ 

5,100  000  qn.of  onr  average  consumptioD,  and  if  we  addtoUntooe 
month  in  conseqaenoe  of  the  nnasaally  early  hanrefii,  and  reckoD  od  13, 
months*  consumption  before  the  next  hanrest  may  be  available,  we  &b«Il 
need  G,800,000  qn.  of  foreign  wheat  and  floor.  In  the  six  months  liooe 
1st  September  last  we  have  imported  about  two-thirds  of  that  qusolity, 
so  that,  even  if  imports  ahoald  for  the  current  biz  months  msteriallj 
decrease,  we  are  likely  to  receive  quite  enough  to  carry  ns  on  with 
moderate  prices  till  next  harvest. 

HL— Price  and  Supply, 

The  price  is  a  quesUon  of  great  delicacy,  though  of  first  importance. 
In  the  coarse  of  the  year  18C8  the  highest  average  (rHxette  price  was  in 
May,  73s  8d,  and  the  lowest  in  December,  50s  Id ;  the  difference  23s  7d. 
There  is  thus  a  fall  of  one- third  from  the  highest  point,  which  comi- 
ponds  in  most  remarkable  exactness  with  the  increased  produce  of  1868 
over  1 867.  So  fa  r  as  our  own  crop  is  concerned,  the  consumer  would  thu 
appear  to  have  got  the  full  benefit  of  the  good  wheat  liarvesL 

Till  next  harvest  the  price  will  very  much  depend  on  the  rste  of 
foreign  imports.  These  come  to  us  not  so  much  in  relation  to  price  in 
this  country  as  to  the  productiveness  of  the  liai  vest  abroad.  Ascsrdtj 
here  and  iHgh  prices  will  draw  the  surplus  corn  from  every  quarter  of  tbe 
globe  to  u»,  but  it  will  not  ceise  to  flow  when  the  source  of  suppljis 
abundant,  however  low  the  price  may  fall  in  this  country.  It  is  an  axiom 
in  political  economy  that  no  article  can  remain  long  below  the  oo«t  of 
production.  But  that  eost  b  very  different  in  different  countries.  In 
this  country  the  coat  of  producing  wheat  may  be  taken  at  the  maximnin. 
In  other  countries  where  rent,  rates,  or  wages  are  greatly  lower  than  oars, 
and  efpecially  where,  as  in  Southern  Russia  and  the  valley  of  the  Missi^' 
6ip|)i,  there  are  likewise  boundless  tracts  of  most  fertile  soil,  they  can 
continue  to  produce  wheat  at  prices  which  would  entail  loss  on  the  grower 
in  England.  Moreover  the  vast  machinery  of  production,  once  set  in 
motion,  will  maintain  its  momentum  for  a  considerable  period  afler  tbe 
stimulus  has  been  withdrawn.  Thus  in  1860,  in  consequence  of  two 
deficient  harvests,  the  price  rose  10s.  a  quarter,  and  the  imports  increased 
one-third  over  those  of  1859.    Thev  continued  to  swell  in  volume  until 

m 

186^  the  year  of  abundance,  when  the  price  fell  lOs.  a  quarter.  Tbe 
imports  did  not  then  decline  in  the  same  proportion  ;  indeed  but  for  tbe 
disturbance  of  the  American  trade,  caused  by  the  war,  there  would  bare 
been  no  decline,  and  if  we  exclude  America  for  that  reason,  and  limit  onr- 
selves  to  Russia  and  Glermany,  which  between  them  have  foniisbed  as 
with  40  per  cent  of  our  imports  since  the  Crimean  war,  I  find  that  duriog 
1863^  1864,  and  1465,  when  tbe  average  priee  varied  between  403.  aad 


ISGd]  AOaXOULTCTRAL  STATISTIOS  Ot  TBB  UNITED    KINGDOM.  Ill 

44s.,  the  imports  continued  at  much  the  same  rate  as  in  the  two  prece- 
dia^x  years,  when  the  price  was  /)5s. 

A  verj  productive  harvest  in  France  will  exercise  an  immediate  infii»- 
ence  OD  prices  in  this  country.  Not  only  does  her  demand  for  foreign 
rora  cease,  but  from  the  smaM  average  yield  and  the  vast  acreage  under 
wheat  a  slight  increase  in  the  produce  tells  quickly  up.  Last  year  1 
computed  an  increase  of  one  bushel  on  the  acre  in  France  at  upwards  of 
2^000,000  qrs.  If  her  increase  has  been  In  anything  like  the  same  ratio> 
as  ours,  France  will  have  a  large  suplus  for  export,  probably  quite  enough 
to  meet  any  decline  caused  by  the  deficient  crop  in  Southern  Russia. 

IV. — Steady  Decline  in  the  Prke  of  Wheat  under  Free  Trade, 

Tiie  effect  of  free  trade  in  corn  has  been  to  lower  the  price  of  wheat 
in  this  country,  notwithstanding  the  increase  of  the  population  and  con- 
sequent increa'.ed- consumption.  The  average  price  of  the  twenty  years 
preceding  1848  was  67s.  4d.,  and  of  the  twenty  years  of  free  trade,. 
52s.  3d.  But  if  the  disturbing  influences  of  the  cessation  of  supplies  from 
Russia  during  the  Crimean  war,  and  from  America  during  the  later  year» 
and  since  the  c)ose  of  the  American  war,  be  eliminated,  the  average  price 
cf  the  last  twenty  years  would  have  stood  1^.  lower  than  that  of  the- 
twenty  years  preceding  free  trade. 

This  is  a  fact  of  great  iniportance  when  we  come  to  consider  the- increas- 
ing population  of  the  country,  and  the  means  we  have  of'neeting  their 
aoBually  growing  demands  upon  our  resources.  The  popular  estimate  of 
the  wheat  anniiaily  consumed  by  each  person  of  the  community  in  Eng- 
land used  to  be  8  bushels,  in  1850  I  ventured  to  question  that  opinion.. 
My  estimates  then  showed  that  it  did  not  probably  from  our  own  soil 
exceed  6  bushels.  Mr.  Liawes  has  lately  entered  on  an  investigation  of 
this  subject,  the  first  part  of  which  he  has  embodied  in  a  very  able  paper 
in  the  last  number  of  the  "  Royal  Agricultural  Society's  Journal"  He 
divides  the  last  sixteen  years  into  two  periods  of  eight  years  each,  and  the 
results  of  his  estimates  are  embraced  in  the  following  summary  : 

ZaTIMATKD  OOaSUMPTlON  OF  WHIAT  PKft  BCAD  Pia  ANMDlfr. 

Ensl^nd  Great  rnlfc^A 

Doling  the  Latt  eiztjeen  Tmtb   and  <Valea.    Pcotland.     Britain.    Irdand.       Kingdom* 

BmheL        Baalud.      Biuhel.       Bushol.       inenel. 

First  eight  yearp 6.9  4.2  6.7  2.7  6.1 

Second        ** e.S  4.2  6.0  8.3  66 

Average  of  whole  period.  6. 1  4.2  6.9  8.0  6.3 

Converting  these  figures  into  pounds,  it  appears  that  during  the  first 
eight  years  each  person  consumed  at  the  rate  of  341  lbs.  of  wheat,  and* 
^uriog  the  last  period  dd&-lbs.    But  the  proportions  in  which  that  was 


112  AiaiUCULTOHAL  BTAltSTICB  OV  TBS  tTHttKD  SIirdDOM.  [1«^(, 

afforded  by  foreign  supply  had  also  altered  from  f  0  lbs.  per  bead  in  the 
first,  to  134  lbs.  in  the  second.  Here  two  Very  important  resists  an 
shown  :  first,  that  the  people  are  able  to  boy  and  do  consnme  mora  bread ; 
and  second,  that  we  must  depend  wholly  on  foreign  oonntries  for  the 
increased  supply  necessary  to  meet  the  growing  consumption. 

An  immense  impetus  seems  to  havB  been  given  to  consumption  by  tbe 
general  increase  of  wages  consequent  on  the  Crimean  war  and  the  Iiniun 
mutiny,  and  the  great  exertions  piit  forth  by  this  country  on  these  oon* 
sions.  The  foreign  imports  of  wheat,  which  up  to  1860  had  not  exceeded 
an  annual  average  of  4,500,000  qrs.,  then  rose  to  10,000,000,  and  doriog 

the  last  eight  years  have  maintained  an  annual  average  of  8,000,000  qn 

• 

y. — Increasing  Rate  of  Consumption  likely  to  he  FulUf  S^qfpUd, 

But  we  have  not  only  to  provide  for  an  increased  consumption  by  eaeh 
individual,  but  for  an  annual  increase  of  240,000  in  the  popnlstioo. 
This,  at  5^  bushels  per  head,  is  165,000  qrs.  In  ten  years,  at  the  ssoie 
rate  of  progress,  that  will  have  swollen  to  nearly  2,000,000  qrs^  aod  b 
ten  years  more  to  4,000,000.  This  would  indicate  the  need  of  a  grsdoil 
rise  in  our  foreign  imports  in  ten  years,  from  the  present  avenge  of 
6,000,000  qrs.  a  year  to  10,000,000,  and  in  twenty  years  to  1S,000,000 
qrs.  a  year.  In  one  generation  more,  say  thirty  years  hence,  the  imports 
will  at  this  rate  be  more  than  the  home  growth,  if  that  should  remais  at 
its  present  point.  Our  past  experience  of  the  readiness  with  which  tk 
volume  of  foreign  wheat  has  increased  with  the  demand  would  lesd  U) 
the  conclusion  that  we  need  entertain  no  apprehension  on  that  sooft 
Califori^ia  promises  us  next  year  more  than  2,000,000  quarters.  Fra&ce 
alone,  by  a  slight  improvement  in  her  husbandry,  only  so  much  as  woolil 
raise  her  average  yield  from  15  to  18  bushels  an  acre,  could  meet  oil* 
requirements.  And  when  we  consider  the  extent  of  rich  countries  witbis 
the  wheat  region  farther  east  which  are  scarcely  begun  to  be  tapped  l>5 
the  raiU  ay  system^  we  must  feel  that  we  are  yet  far  from  having  reaekci 
the  limit  at  which  a  moderate  rate  of  price  will  bring  us  suffideot  sop 
plies.  For  wheat^  which  forms  the  great  staple  of  the  food  of  civilised  m^ 
outside  the  tropics^  occupies  of  all  cereals  the  widest  region  suited  to  it! 
cultivation. 

The  importance  of  this  fuct  cannot  be  overrated.  If  the  wheat  region 
liftd  been  of  small  extent  the  increase  of  population  would  have  been 
quickly  limited  to  the  food  resources  of  each  country.  Acontinned  dere- 
lopment  of  mining  and  manufacturing  enterprise  in  Great  Britain  wocl<i 
have  been  impossible.  For  nothing  can  be  done  without  bread.  Wheat 
is  the  common  food,  the  real  staff  of  life.  The  hard-working  poor  are  dt 
more  dependent  on  and  much  larger  individual  consumers  of  it  than  the 


1869]  AaRICULTURAL  STATISTICS   OF  THB   UNlTBD   KINODOU.  113 

rich.  If  its  price  like  that  of  most  other  commodities  had  risen,  or  was 
h'kelj  to  rise,  with  tfa^  increasing  demand,  no  political  forei>ight,  no  more 
equable  arrangement  of  the  burden  of  taxation,  no  reduction  even  in 
public  expenditure  could  have  long  availed  us.  But  the  wheat  region  has 
been  designed  apparently  to  be  co  extensive  with  the  progress  of  civilized 
man,  and  the  more  reguUr  and  extensive  the  demands  upon  it  the  more 
ready  and  continuous  becomes  the  supply. 

The  natural  tendency  of  the  gradually  falling  price  of  wheat  in  this 
country  since  1848,  has  been  to  diminish  the  breadth  of  our  own  wheat. 
And  the  force  of  that  tendency,  in  spite  of  the  great  increase  of  gold, 
shows  the  steadiness  of  its  operation.  There  has  been  a  yearly  increase 
of  consumers,  with  an  increased  power  and  capacity  to  obtain  bread,  an 
increasing  ratio  in  the  supply  of  gold,  the  representative  of  its  money 
value ;  and  yet  in  spite  of  all  that,  the  price  has  declined,  and  the  average 
breadth  of  wheat  grown  in  the  United  Kingdom  has  diminished.  But 
the  figures  in  the  statistical  returns  show  how  quickly  the  price  of  wheat 
affects  the  home  supply.  The  two  fine  crops  of  1863  and  1864  reduced 
the  average  price  to  little  more  than  40s.  But  in  1867  the  price  had 
risen  to  643.,  and  in  one  year  there  was  an  addition  of  300,000  acres  to 
our  breadth  of  wheat.  , 

I  have  already  in  a  previous  paper  shown  that  the  rate  of  increased 
productiveness  of  the  land  under  wheat  is  very  slow.  From  that  source, 
therefore,  there  is  little  hope  of  any  material  increase  in  our  home  pro- 
duce, in  the  face  of  larger  foreign  supplies  at  low  prices.  When  the 
price  of  wheat  falls  below  50s.,  the  farmer  begins  to  turn  his  attention  to 
other  crops.  The  value  of  barley  hns  been  rising  in  nearly  the  same  pro- 
portion as  that  of  wheat  has  declined  in  recent  years,  and  oats  have  also 
fully  maintained  their  price.  While  the  farmer  in  these,  and  in  the 
increasing  value  of  his  live  stock  and  its  ptoduce,  will  be  able  to  compen- 
sate himself  against  the  steady  decline  in  the  value  of  wheat,  the  people, 
that  vast  and  mcreasing  body  of  consumers,  have  the  prospect  of  abundant 
supplies  of  bread  at  a  moderate  price,  from  the  yearly  extension  of  the 
means  of  foreign  transport. 

VL — General  Result$, 

Having  thus  endeavored  to  discuss  the  main  question  answered  by  the 
agricultural  returns,  viz.,  in  how  far  the  home  crop  is  available  for  the 
national  supply  of  bread,  I  proceed  to  extract  from  the  returns  certain 
other  ).*oints  affecting  our  food  and  clothing.  Beyond  a  slight  increase  in 
the  bceadth  of  potatoes,  and  a  nearly  similar  decrease  in  barley,  and  the 
large  increase  of  wheat  already  referred  to,  there  has  been  no  material 
change  in  the  general  crops  of  the  country  during  the  last  two  years. 

3 


114  AGMCVLTORU.  BTAntnci  OF  IBS  uviTKD  mamtou.  [Av^ 

The  taUe  Bbowing  the  percentage  pr<^rtioDS  of  corn  end  green  erop  in 
etch  di?inon  of  the  United  Kingdom  is  very  interesting.    In  rouad  nun* 
bers  it  appears  that  Engbind  supplies  nine-tenths  of  all  the  homegrown 
vheat,  Scotland  and  Ireland  together  on! j  one>ienth.    And  the  ioereiaed 
breadth,  sown  nnder  the  stimnlos  of  the  high  prices  of  the  pest  jar  ia 
England,  is  equal  to  the  whole  acreage  under  wheat  in  Ireland.    EogLud 
produces  more  than  three  fourths  of  all  the  barley  grown  in  tbs  BritL'b 
Islandsy  neariy  all  the  beans  and  peas,  and  one-third  of  the  oats..    Irelud 
grows  one-half  more  oais  than  Scotland,  and  two-thirds  of  the  endrepoUto 
crop  of  the  United  Ejngdom.    The  three  kingdoms,  as  compsfed  with 
France  and  Prusua,  grew  the  following  proportions  of  acres  of  coro  to 
their  lespectiTe  populations : 

&^1siid  1  sere  hr  ererf  2f  peiMos. 
BcoCUsd  1  ■*  Si  penoQS. 

'Irdand    I  •  2^  penaot. 

Fraaee    1*1  penoo. 
Pniasia    1*1  pcnoD. 

And  of  potatoes — 

fiigland  1  acre  lor  everf  68  ptfBODs. 
Sei  fluid  1  "  20  pcnoiM. 

Fkanee    1  "  18  perwma. 

Ire^ADd    1*6  penoM. 
PtoMia    1  "  6  pcnons. 

With  r^;ard  to  live  stock,  these  countries  stand  in  the  following  fto- 
portions: 

Gittlau  FliMP. 

Kksglsod  1  for  erery  ft  pertoos ;  1  lor  •rtrj  1  of  popalatioo 
SoDtlandl        "        S        **        S        *'        1 
Ireland    1        "        1*      "        1        ••        1  * 

1        «        «|      *        1        "        1  * 

1*8*1*1  • 


Of  all  these  countries  Ireland  has  ihus  the  largest  proportion  of  cattle, 
and  Scotland  the  largest  or  sheep. 

Vn. — Inenate  of  CatiU  and  Sheep. 

The  entire  loss  sustained  by  the  cattle  plague  up  to  October,  1867,  wbai 
it  had  quite  ceased,  was  190,000  head.  The  natural  increase  in  the  tvd 
years  since  the  disease  began  to  decline  exceeds  500,000,  so  that  the 
effects  of  that  calamity,  so  far  as  the  national  supply  of  food  is  oonoemec, 
have  been  fully  recovered.  The  increase  of  sheep  has  been  very  rapist 
the  joint  effect  of  high  price  of  mutton,  and  the  panic  which  in  some 
counties  followed  the  cattle  plague,  and  led  to  a  subetitution  of  sheep. 
The  total  increase  of  the  year  has  been  1,790,000.  The  sheep  stock  of 
the  United  Kingdom  is  upwards  of  35,000,000,  which  is  almost  the  ssme 
in  number  as  that  ol  the  Australian  Colonies  and  Tasmania,  aooording  to 
the  latest  returns.    The  total  number  of  sheep  in  the  United  EiogdoiD 


1860]         AGBIOITLTtrRAL  STATISTICS  OF  THB  T7HITXD  XINODOM.  115 

and  the  whole  of  the  British  Coloniefi,  iudependent  of  India,  canDot  now 
he  much  under  100,000,000.  The  import  of  continental  wool  is  on  the 
decline,  while  that  of  colonial  is  largely  increasing.  At  the  late  rate  of 
progress,  our  vast  woolen  industry  in  this  countrv  will  ere  long  be  suffi- 
ciently supplied  by  the  home  and  colonial  produce. 

Whilst  the  increase  of  sheep  at  home  has  been  rapid  and  great,  there 
has  been  a  very  large  decrease  in  the  supply  of  foreign  sheep.  These, 
which  in  a  single  year,  1805,  had  risen  from  490,000  to  914,000,  began 
to  decline  in  1867,  and  fell  back  greatly  in  1808. 

This  was  caused  in  some  measure  by  the  restrictions  imposed  on  the 
import  of  sheep  by  the  Privy  Council  orders,  but  was  partly  also  due  to 
the  considerable  fall  in  the  price  of  mutton  during  1808,  arising  from  the 
large  supply  of  sheep  forced  into  the  home  market  by  the  prospect  of  a 
dearth  in  the  green  crops.  But  the  agricultural  returns  have  revealed  to 
us  the  gratifying  fact,  in  relation  to  this  important  branch  of  the  national 
food,  that  there  is  an  immense  elasticity  in  the  production  and  supply  of 
fiheep,  both  at  home  and  abroad,  and  that  may  be  largely  and  quickly 
increased  by  a  moderate  rise  in  price. 

VIIL — Foreign  Dairy  Produce  not  Increasing. 

The  foreign  supply  of  butter  and  cheese  has  continued  very  steady 
during  the  last  eight }  ears.  It  made  a  sudden  rise  in  1861,  and  had 
nearly  doubled  itself  in  1862  ;  but  from  that  year  the  average  supply  has 
not  materially  altered.  As  the  prices  of  these  articles  are  still  highly 
retnuDerative  to  the  home  producer,  there  is  every  inducement  to  him  to 
derelop  yet  further  that  branch  of  agricultural  industry,  on  which  the 
Email  and  middle  class  farmers  are  chiefly  engaged. 

IX — Large^  Compared  with  Moderate  Sized  FarniA. 

The  returns  afford  some  indications  of  the  results  of  large  com  farms  as 
ccmpared  with  the  more  mixed  husbandry  and  interests  of  small  or  mode* 
rate  sized  farms.  I  have  taken  ten  of  the  largest  farm  counties  in  Eng- 
land and  compared  them  with  ten  of  the  smallest  farm  counties,  the  total 
area  in  both  cases  being  nearly  equal.  The  general  results  may  be 
broadly  summarised  thus:  The  large  farm  system  embraces  nearly  twice 
the  proportion  of  ccm  and  half  the  proportion  of  green  crops  and  grass. 
In  other  words,  it  is  doubly  dependent  on  the  price  of  corn  as  compared 
lith  the  middle-class  farm  system,  which  relies  to  a  far  greater  extent  on 
dairy  produce,  its  fat  cattle,  its  vegetables  and  its  hay.  The  result  is  that 
the  latter  pays  more  rent  or  surplus  for  the  use  of  the  land  and  a  higher 
rate  of  wages  to  the  laborer. 

There  can  be  no  doubt  that  circumstances  of  soil  and  position  are  the 
chief  cause  or  the  distinctive  modes  of  husbandry  which  have  continued 


116  AGRICULTURAL   8TATISTICB  OF   THC   UNITED   SIITODOIC.     [AugVit, 

to  characterise  different  counties,  notwitbstanding  the  obvious  cliange  in 
the  relative  values  of  agricultural  produce.  The  price  of  wheat  is  not 
higher  now  than  it  was  one  hundred  years  ago.  Barley  and  oats  liart 
risen  50  per  cent  and  animal  produce  more  than  100  per  cent  in  that 
time.  A  'd  yet  wheat  maintains  its  prominence  on  the  heavier  foils 
where  a  bare  fallow  is  still  found  the  most  perfect  and  economicsl 
preparation  for  that  crop,  and  in  the  eastern,  south  midland  and  south- 
em  counties,  where  a  dry  climate  and  somewhat  thin  soil  is  less  favorable 
to  stock  husbandry  and  grass.  It  is  worthy  of  notice  that  in  every  one 
of  tbe  ten  counties  where  the  large  farm  system  prevails  the  chalk  forma- 
tion predominates,  and  there  is  no  coal ;  while  in  all  the  ten  counties  of 
the  smaller  farm  system  coal  is  present,  and  there  is  no  chalk.  The 
vicinity  of  coal  has  naturally  influenced  the  increase  of  population  and 
the  consequent  higher  rates  of  rent  and  wages. 

X. — Frojot tians  Under  Bare  Fallow, 

The  extent  of  land  in  England  under  bare  fallow  every  year  is  nearly 
800,000  acres,  which  is  more  than  one-tenth  of  the  whole  breadth  of  corn. 
The  proportion  in  Scotland  is  about  a  twentieth,  and  in  Ireland  less  than 
the  ninetieth  part.  In  France  and  Prussia  an  extent  equal  to  one-third 
of  all  the  cereals  is  annually  led  to  lie  fallow.  This  undoubtedly  indicates 
the  great  prevalence  of  a  poor  and  low  state  of  husbandry  in  these  coun- 
tries, due  in  a  large  degree  also  to  the  dryness  of  the  spring  and  summer 
climates.  But  of  the  three  kingdoms  it  is  very  remarkable  that  Ireland 
should  stand  so  pre-eminently  above  the  others  in  her  comparative  free- 
dom from  the  direct  loss  occasioned  by  the  necessity  of  leaving  the  land 
to  lie  fallow,  which  cannot  be  wholly  accounted  for  by  the  comparatively 
small  proportion  cf  clay  soils  in  that  country. 

XI. — Distinctive  Features  of  ffuebandry. 

There  is  a  much  greater  similarity  than  will  be  generally  imagined  ia 
the  agriculture  of  England  and  Scotland,  and  a  distinctive  principle  of 
difference  between  them  and  Ireland  in  a  very  important  point  This  will 
be  clearly  seen  by  the  proportions  of  the  whole  area  of  the  three  coun- 
tries, exclusive  of  heath  and  mountain  land,  thus  divided  : 

England  has  in  corn  and  potatoes  83  per  cent,  in  green  crops  and  grass 
66  per  cent 

Scotland  has  in  corn  and  potatoes  33  per  cent,  in  green  crops  and  grass 
60  per  cent. 

Ireland  has  in  corn  and  potatoes  20  per  cent,  in  green  crops  and  grass 
^0  per  cent 

The  agriculture  of  England  and  Scotland  seems  thus  alike  in  its  prin- 


1869]  AGRICITLTUflAL  fiTATlSTTCS   •  F  THB   UNTTBD   KINGDOM.  Il7 

ciple  of  one-third  exhaustive  and  two  thirds  restorative  crops,  while  that 
of  Ireland  has  only  one-fifth  exhaustiV'*  to  four-fifths  restorative.  I  have 
incloded  potatoes  in  the  exhaustive  crop?,  so  that  Ireland,  which  has  bj 
far  the  largest  proportion  in  potatoes,  suffers  some  disadvantage  by  this 
mode  of  comparison.  But  the  result  >s  very  startling,  as  it  places  the 
agricultural  system  of  Ireland,  as  an  ameliorating  and  reproductive  self- 
sopporting  system,  far  above  that  of  England  and  Scotland.  To  this  I 
will  return.  But  as  some  illustration  of  the  effect  of  this  exhaustive 
miem  of  corn  husbandry  as  compared  with  its  proportion  of  the  restora- 
tive green  crops  and  grass,  the  following  figures  gathered  from  the  returns 
are  deserving  of  notice : 

Per  cent  of  Percent  At.  prod,  of 
CO  n  and  eraen  crop,  wheat  p.  ncre. 
potatoes.  faUow4;g.aai.     Bashele. 

England 88  66  28 

Prostia 45  65  17 

Fraooe,. 64  46  14 

This  would  seem  clearly  to  show  that  deterioration  rapidly  follows  the 
Io«$  of  a  due  balance  between  the  exhaustive  and  restorative  crops,  where 
tLere  are  no  extraneous  means  of  supplying  the  loss. 

XII. — Feeble  Yield  of  France  Explained, 

The  state  of  agriculture  in  France  is  of  much  importance  to  the  con- 
sumer of  bread  in  this  country.  In  some  recent  years  she  has  contributed 
one  third  of  our  whole  foreign  supply  of  wheat,  consid(*rab1y  more  than 
the  entire  oroduce  of  Scotland  and  Ireland.  A  good  crop  in  France, 
therefore,  at  once  tells  on  our  prices,  whilnt  a  failure  brings  her  large  pop- 
Qlation  into  competition  with  us  in  the  general  market  of  the  world.  She 
has  a  vast  breadth  annually  under  wheat,  but  the  yield  is  very  small. 
Ibis  haa  been  attributed,  and  would  appear  partly  due,  to  the  poverty  and 
vant  of  fckill  of  her  small  occupiers;  and  many  arguments  have  been 
founded  upon  it  against  the  small  farm  system  and  the  minute  subdivision 
of  land.  Bat  it  has  oflen  struck  me  in  passing  through  that  part  of  France 
which  lies  between  us  and  Paris,  that  the  general  cultivation  of  the  land, 
and  the  appearance  of  the  growing  crops,  was  quite  equal  to  our  own, 
ind  the  very  low  average  rate  of  yield  of  wheat  officinlly  stated  seemed 
to  me,  therefore,  unaccountable.  The  explanation  has  been  afforded  to  me 
bj  the  distinguished  French  economist,  M.  De  L&vergne,  in  the  following 
letter,  dated  25tn  February  last:  '^The  official  returns  gives  a  mean  yield 
of  14^  hectolitres  per  hectare,  the  actual  yield  being  more  above  than 
below  the  estimate.  Eight  departments,  Le  Nard,r01se,  TAisne,  Somme, 
Seine-et  Oise,  Seine-et-Marne,  Seine  and  Eureet  Loire,  have  a  yield  equal 
to  the  English  average ;  but  the  forty -five  departments  which  form  the 
southern  part  of  the  territory,  do  not  yield  more  than  10  hetolitrea  to  the 


118  IGBICULTUBAL  BTATI8TI0S  OV  THE  UimSD  IIV^DOli.    [-^V^ 

hectare.    This  feeble  yield  is  eaased  in  many  of  tbe  departmoitB  by  bed 
eultivation,  and  id  the  south  by  the  dryness  of  the  climate  in  Spring.  TIm 
statistical  returns  also  show  6,148,000  hectares  of  fallow,  which  isin  ^Kt 
the  thit  d  of  tbe  surface  sown   with   cereals."      There  is  no  help  for  thai 
part  of  the  country  which  suffers  from  great  dryness  of  Spring  climate^ 
but  there  would  seem  much  room  for  improvement  in  the  yield  of  wheit 
over  the  remainder,  which  comprises  probably  more  than  one-half  of  tiie 
surface  of  France.     As  increasing  importers  and  consumers  we  are  nnrly 
as  much  interested  in  that  improvement  as  the  French  themselves.  Tbe 
state  of  agriculture  must  be  low,  indeed,  where  it  is  possible  to  be  carried 
on  with  an  average  produce  ot  10  to  12  bushels  wheat  an  acre.    Thecoiu 
and  profits  of  cultivation  must  be  at  the  very  minimum  to  yie!d  any  rarpla 
for  rent,  and  the  condition  of  the  cultivator  must  be  a  hard  one.    He  bn 
other  sources  no  doubt,  which  may  help  him — his  vines  and  oil — but  in  tbe 
nature  of  things  it  is  impossible  that  he  can  get  any  profit  from  his  wbett 
crop,  until  by  such  a  change  of  system  as  will  increase  its  yield.  ToKsrdi 
this  object  the  French  Grovemment  have  for  some  years  been  unremittiDg 
in  their  attention,   by  contributing  largely  from  the   public  resources  to 
improve  the  internal  communication   of  the  country  and   facilitate  tbe 
interchange  of  products.    The  increase  of  a  few  bushels  an  acre  orer  to 
large  a  surface  as  one-half  the  wheat  crop  in  France,  ironld  give  her  i 
regular  surplus  for  exportation. 

XIII. — IrUh  Agriculture. 

It  was  my  intention  to  have  instituted  a  comparison  between  the  Itfgs 
farm  system  of  England,  and  the  small  farm  system  of  Ireland,  and  I  bad 
prepared  detailed  statements  of  groups  of  counties  in  the  two  oountnesfor 
tbe  purpose ;  but  there  are  too  many  elements  of  estimate  or  oonjeetars 
to  warrant  their  publication  as  a  statistical  deduction.  If  we  confine oor 
attention  to  Ireland  alone,  some  remarkable  anomalies  present  themselves 
The  province  with  the  highest  valuation — Leinater  at  20a.  an  aeie--bis 
the  smallest  population  on  the  square  mile  of  land  under  the  plough;  wbiie 
Connaught — with  a  valuation  of  Cs.  8d.  an  acre — the  lowest  ot  tbe  to 
provinces,  has  the  largest  population  in  proportion  to  its  arable  land.  Tbe 
poorest  part  of  the  country  is  thus  also  the  most  populous.  Bat  that  does 
not  seem  to  arise  (rom  an  excess  of  small  farms,  for  Leinater  has  a  \^ 
proportion  of  holding  under  five  acres  than  Connaught. 

XIV. — No  jReeent  Reduction  in  SmaU  Holdings. 

A  great  reduction  took  place  in  the  number  of  small  holdings  in  Irelnd 
during  the  years  of  the  potato  famine,  1845  to  1850,  hot  since  18^0 
there  has  been  very  littie  alteration.    The  comparison  one  ooMtsntly 


1SG9]  AORIOtJLTURAL  STATISTICS   OF  THB  UKIT8D   XINODOH.  119 

meets  with  is  between  the  jeara  1841  and  1861,  the  small  farms  being 
stated  to  have  fallen  in  that  time  one-half  in  number,  and  the  larger  sized 
increased  in  an  equal  ratio.  But  that  has  not  been  progressive.  It  had 
»1!  taken  place  before  18.51,  and  there  has  been  no  marked  change  in 
tijia  direction  daring  the  last  eighteen  jears.  In  1867  the  number  t}f 
holdings  was  607,000,  divided  thus: — 307,000  farmers  holding  farms  of 
15  acres  and  under,  and  300,000  farmers  of  15  acres  and  upwards.  Bat 
the  first-class,  or  small  farmers,  hold  not  more  than  one-eighth  of  the 
cultivated  land;  the  second-class,  or  larger  farmers,  holding  seven-eighths 
of  the  whole. 

We  have  already  seen  that  the  counties  in  England  where  tlte  system 
of  raoderste-sized  farms  prevail  have  the  smallest  proportion  of  corn, 
and  the  highest  of  cattle  and  of  dairy  stock.  They  have  a  greater  rain- 
fallj  a  deeper  soil,  and  are.  more  productive  of  grass  and  green  crops. 
Now,  if  we  exclude  from  consideration  for  a  moment  the  307,000  small 
farmers,  that  b  exactly  the  state  of  Ireland.  Her  climate  and  soil  are 
very  favorable  to  green  crops  and  grass  and  to  dairy  farming,  and  she  has 
the  further  great  advantage,  which  I  have  already  shown,  of  having  the 
traallest  proportion  of  such  land  as  it  is  necessary  to  lay  fallow ;  and  her 
system  shows  the  largest  proportion  in  the  three  kingdoms  of  restorative 
to  exbaastive  crops.  Her  only  disadvantage  as  an  agricultural  country  is 
the  occasional  visitation  of  seasons  of  too  much  rain.  That  has  several 
times  imperilled  the  wheat  crop.  But  the  wheat  crop  is  less  than  one- 
tenth  of  the  cereals  of  Ireland,  and  her  agricnltuie  is  bat  little  dependent 
upon  iU  Oats  are  her  chief  reliance  as  a  corn  crop,  and  from  flax  she 
derives  an  annual  return  of  between  two  and  three  millions  sterling — an 
article  which  may  be  said  to  be  now  unknown  to  the  agriculture  of 
England  and  Scotland.  If  we  sum  all  up,  we  find  that,  as  compared  with 
the  sister  kingdoms,  Ireland  has  on  the  whole  a  more  productive  soil,  and 
her  produce  is  chiefly  of  that  kind  which  in  the  last  twenty  years  has 
risen  most  in  value.  I  am  very  much  disposed  to  tbink  that  the  seven- 
eighths  of  Ireland,  which  are  in  the  hands  of  the  larger  farmers,  yield  as 
f^eat  a  produce  per  cultivated  acre  as  the  average  of  England  and  Scot- 
land. I  am  not  in  a  position  to  submit  this  to  any  accurate  test  of  proofs 
but  this  is  the  impression  left  on  my  mind  as  the  result  of  a  careful  inves- 
tigation of  the  question. 

X7. — Distress  mainly  Confined  to  One^igkth  of  Land  in  Hands  of 

Smallest  Occupiers, 

But  the  position  of  the  307,000  small  farmers  who  occupy  the  remain* 
ing  eighth  of  Ireland  is  probably  very  different.  It  is  among  that  bodj 
that  real  distress  is  found,  though  the  class  of  larger  farmers,  not  much 


120  AGRICULTURAL   STATISTICS   OF  TBB   UNITED   XINODOM.     [.^V^Wt, 

separated  from  them,  have  helped  to  swell  the  general  coroplaiDt.  Expe- 
rience has  showD  tiiat  it  U  only  in  climates  and  upon  soils  the  most  &?ora> 
ble  that  an  entire  dependence  fur  liis  sabsistence  can  be  placed  by  tu« 
cultivator  of  a  few  acres  of  land.  Even  in  Belgium,  where  cirrumsUn<ie< 
ai;e  favorable,  the  sm^ll  cultivator  has  but  a  hard  lot  of  poverty  and  tuil- 
He  thrives  where,  in  addition  to  his  land,  him^-elf  and  his  family  6fi«l 
regular  employment  in  some  other  industry.  It  is  the  same  wiib  the 
English  peasant.  A  man  who  has  regular  employment  at  wages  fit di 
an  immense  advantage  in  a  good  garden  allottment  beside  hi^  cott^gt*, 
and  that  is  vastly  increased  when  that  cottage  is  on  the  farm,  away  from 
the  temptation  of  the  beer-shnp,  and  where,  as  part  of  his  wai^e^t  ^^ 
receives  the  keep  of  a  cow.  This  is  the  system  in  the  border  coaniics, 
where  agriculture  is  in  the  moft  pros)  erous  stiite,  and  the  agricoltunu 
laborer  the  best  ftrd  and  clotheci,  the  roost  educated  and  intelligent  of  bis 
class  in  any  part  of  the  tliree  kingdoms.  But  the  Irish  farme*  o(  af^* 
acres  of  inferior  land  must  be  in  a  position  of  chronic  distress.  The 
witnesses  most  favorahle  to  him  examined  before  Mr.  Masfuire^s  Commiuet 
in  1865,  held  that  15  to  20  acros  aiid  upwards  was  the  least  extent  ol 
which  a  man  with  his  family  could  be  expected  to  thrive.  On  latd  of 
good  quality,  and  near  a  large  population,  a  much  smaller  extent  mi^bt 
no  doubt  be  found  suflicient.  But  taking  the  land  of  Ireland  as  it  is,  sii<i 
the  circumstances  of  the  country,  and  its  mode  of  agriculture,  there  i*  a 
genernl  consent  of  the  most  cou)  petent  judges  in  that  country,  that  Isrmi 
below  15  or  20  acres  are  too  small  to  afford  a  due  return  for  the  enUK 
labor  of  a  man  and  his  family.  It  would  therefore  follow  that  130.0W 
of  the  small  fanner?,  with  their  families,  are  as  many  as  the  remainicj 
eighth  of  the  surface  of  Inland  cun  profitably  mainU«in  as  farmers, aod 
tlat  there  will  then  remain  a  surf  Ins  of  170,000  and  iheir  families. 
These  figures  represent  the  whole  dumber  of  holdings ;  but  several  boU- 
ings  are  believed  to  be  in  many  cases  in  the  hands  of  one  larnier,  aLd 
tlie  total  number  of  occupiers  is  therefore  reckoned  by  Lord  Dufferin  D'I 
to  exceed  441,000.  If  that  be  so,  the  surplus  to  be  otherwise  provioed 
for  will  not  exceed  100,000. 

That  seems  no  impossible  an  achievement  A  wise  measure  for  settling 
the  long  agit.ited  question  of  the  tenure  of  land  will  give  a  great  impeius 
to  improved  agriculture,  and  the  consequent  demand  for  labor  will  ra^iti'j 
absoib  that  surplus.  It  is,  after  all,  little  more  than  ^ne  additional  fan&iJj 
for  every  160  acres  of  cultivated  land.  I  have  no  doubt  that  the  Legi^i* 
lure  which  shall  pass  the  great  mea^^ure  of  pacification  for  Ireland,  vl^ 
is  now  under  its  consideration,  will  in  lue  time  complete  the  work  by  a 
just  land  la*v,  whit'h  will  give  greater  security  to  the  emplojroeDi o^ 
capital  in  the  cultivation  of  the  Uml,  and  call  into  action  that  surploi 
labor,  without  which  its  latent  fertility  cannot  be  fully  developed. 


1869]  AGRICULTURAL  STATISTICS   OF  THB   UNITED   KINGDOM.  121 

XVI. — The  English  Agricultural  Laborer, 

Bat,  tbough  the  state  of  the  Irish  peasant  has  been  more  forced  upon 
public  attention,  the  condition  of  the  agricultural  laborer  in  En<xland  is 
verj  far  from  satisfactory.     The  agricultural  returns  afford  no  guide  to  its 
consideration.     He  is  the  only  class  of  the  community  who  has  no  repre- 
Bentative.    The  Irish  peasant  has,  directly  in  many  cases,  by  his  vote  as  a 
flmalj  farmer,  and  indirectly  through  his  church,  which  (connected  neither 
with  the  landlord  nor  the  State)  brings  the  aororreg^ite  feeling  of  the  people 
to  bear  upon   their  Parliamentary  representatives.    By  one  means  or 
another  they  do  make  themselves  heard  in  Parliament.    But  so  little  is 
known  of  the  English  agricultural  laborer,  that  when  his  actual  condition 
is  set  forth  in  the  report  of  a  Royal  Commission,  the  public  are  struck 
with  astonishment,  and  even  the  la*»tlowners  are  surprised  to  find  a  state 
of  things  at  their  doors  which  many  of  them  little  suspected.    The  con- 
dition   of  the  laborers*  dwellings  is  in  some  counties  deplorable.    It  is 
not  my  province,  however,  on  this  occasion  to  enter  further  on  that  sub- 
ject.   I  attempted  to  introduce  a  clause  in  the  last  Census  Act,  in  1860, 
which  would  have  thrown  much  light  on  the  state  of  our  cottage  accom- 
modation, but  it  was  rejected  in  the  English  Bill.     It  was  adopted,  how- 
ever, in  the  Scotch    census,   and    has    shown    that    one  third   of   the 
population  of  Scotland   lived,  each  family,  in   houses  of  one  room  only, 
another  third  in   houses   of  two  rooms ;  two  thirds  of  the  whole  of  the 
people  being  thus  found  to  be  lodged  in  a  manner  incompatible  with  com- 
fort and  decency  as   now  understood.    The  same  returns   in   the   next 
census  will  show  the  progress  that  has  been  made  in  the  10  years;  and 
the  public  advantage  of   this  will,  I    trust,  lead  to  the  adoption  of    a 
a  similar  system  in  the  next  English  census. 

In  the  came  year  I  moved  for  the  returns  of  the  wages  of  agricultural 
laborers  in  England  and  Wales,  which  was  subsequently  followed  for 
Scotland  and  Ireland.  Upon  these  returns  Mr.  Purdy  read  to  this 
Society  an  able  and  interesting  paper  in  1861.  These  form  very 
important  branches  of  the  statistics  of  agriculture,  and  though  it  is  not 
necessary  that  they  should  be  included  in  the  annual  returns,  I  trust 
their  importance  will  not  be  overlooked  in  the  preparation  of  the  next 
Census  Act. 

XVn. — Cheat  Change  in  proportion  of  the  People  Dependent  on 

Agriculture, 

It  has  been  found  in  Ireland,  and  is  the  case  to  a  less  extent  in  some 
parts  of  England,  that  it  is  not  so  much  the  low  rate  of  wages  as  the  irre- 
gularity of  employment  which  depresses  the  condition  of  the  agricultural 
laboreffi.     That  is  mitigated  by  emigration  from  the  agricultural  to  the 


122  AORICTTLTURAL  STATISTICS   OF  THB  UNITSD   XIKODOll.    [AugfUi, 

mining  and  manufacturing  districts,  or  to  foreign  countries.    Mere  fArm- 
ing  will  not  take  up  pro6tably  the   natural  increase  of  popalaiioii  in  % 
thickly-populated  country  like  oura,  and  the  purely  agrieultnnJ  distrids  in 
each  of  the   three  countries  are  constantly  parting  with  their  lurplai. 
The   proportion    between   the  producers  and  consumers  of  food  is  Urn 
undergoing  a  marked  change.     In  1831,  28  percent  of  the  population  of 
England  and  Wales  was  occupied  in  the  business  of  agriculture.    In  1841 
it  was  22  per  cent    In  1851    it  had  fallen  to  16  per  cent,  not  aoma<i 
from  an  actual  decrease  of  the  numbers  employed  in  agricultural  as  from 
the  far  greater  proportional  increase  of  trade.    In  1861  the  proportion 
was  10  per  cent,  and  then  not  only  had  the  proportion  diminisbed,  bot 
the  actual  numbers  had  decreased  by  nearly  one-fifth.    It  is  Teiy  a  remark- 
able fact  that  in  the  course  of  a   single   generation   the  proponioo  of 
(he  people  of  England  employed  in  and  dependent  on  agriculture  had 
diminished  from  a  third  to  a  tenth.    The  only  means  of  arresting  thia  is 
by  providing  better  paid  and  more  regular  employment  in  country  woik, 
and  thus  diminishing  the  temptation  of  the  higher  wages  of  the  miD«, 
the  factory,  and  the  towns. 

XVIII. — ffomi-Orawn  Sugar. 

Last  year  I  touched  on  this  subject,  and  mentioned  the  intention  of 
trying  the  beetroot  sugar  growth  and  manufacture  in  this  country.  The 
experiment  was  made  in  Suffolk,  and  with  so  much  promise  of  soecesi, 
that  in  the  same  Ic cality  this  season  a  sufficient  breadth  of  beet  will  be 
planted  to  keep  an  extensive  sugar  factory  in  full  work  for  the  four  slack 
months  from  October  to  February.  The  matter,  then,  will  be  beyond 
experiment,  for  if  it  proves,  as  is  anticipated,  the  suitability  of  our  diniatd 
and  soil  to  the  profitable  production  of  sugar-beet,  it  will  be  the  davo  of 
a  new  agricultural  industry,  wnich  may  rapidly  be  developed,  to  the 
great  benefit  both  of  England  and  Ireland.  The  possible  magnitude  of 
the  result  will  be  readily  appreciated  by  the  fact  that  in  this  country  tb« 
consumption  of  sugar  is  equal  to  nearly  one-third  of  all  the  sugar  annoailj 
produced  in  the  tropics  and  on  the  continent,  and  that  any  distarbanee 
which  would  seriously  alter  the  state  of  property  or  labor  in  Cubs,  mvsX 
give  an  immense  stimulus  to  the  demand  for  beetroot  sugar.  And  the 
reduction  of  price  which  will  follow  the  ^  free  breakfast  table^  promised 
to  us  by  Mr.  Bright,  as  one  of  the  early  results  of  sconomy  in  oar  psLiie 
expenditure,  will  rapidly  augment  that  demand. 

In  a  national  point  of  view  the  introduction  of  a  new  manufacture  cob- 
nected  with  agriculture,  such  as  beetroot  sugar,  will  both  enlarge  tbs  ieU 
of  remunerative  labor  in  the  country,  and  provide  an  absolute  addiiioQ  to 


1869]  THB   COMING   CHIKX6K.  123 

agricultural  produce  and  wealth.  For  the  pulp  after  the  sugar  is  extracted 
has  lost  little  of  its  value  as  cattle  food,  and  therefore  the  substitution  of 
ingar-beet  for  some  of  the  present  cattle  crops  will  displace  to  a  very 
small  extent  the  means  of  feeding  cattle.  And  even  that  will  soon  be 
made  good  by  the  more  generous  farming  which  the  profits  of  sugar- 
growing  will  enable  the  farmer  to  practise  on  the  other  ctops  of  his  farm. 
I  have  here  a  specimen  of  the  first  English-grown  sugar,  not  a  mere 
experiment,  but  produced  as  a  matter  of  business.  I  find,  from  a  French 
paper  sent  to  me  this  morning,  that  the  northern  departments  of  Fraooe 
DOW  produce  about  200,000  tons  of  sugar  a  year,  or  nearly  two-thirds  of 
the  sagar  consumed  in  France.  We  use  twice  as  much  sugar  in  this 
eonntry  as  the  French  do,  and  its  consumption  is  always  increasing.  At 
a  reduction  of  price  equal  to  the  present  duty  that  increase  would  rapidly 
extend.  I  may  be  over  sanguibe  on  the  subject,  but  I  should  not  be 
greatly  surprisetl  if  in  ten  years  hence  many  thousand  acres  in  the  United 
Einj^dom  should  be  profitably  employed  in  the  production  of  home-grown 
•ugar. 

XIX.— i2e/tim  of  ffanei  Dmrahle. 

The  last  topic  on  which  I  will  touch  is  one  of  omission.  The  returns 
of  live  stock  do  not  include  horses,  the  most  interesting,  and  individually 
the  most  valuable  of  all.  As  every  man  knows  the  number  of  his  horses, 
the  return  can  be  given  without  occasioning  a  p^irticle  of  trouble,  and  I 
hope  therefore  that  the  schedule  for  the  present  year  will  include  a  column 
for  horses. 

Id  conclusion,  I  think  it  will  be  generally  admitted  that  the  agricul- 
tural returns  have  proved  most  useful  and  most  instructive,  and  consider- 
ing the  ever  inc/easiDg  demands  of  our  population  on  the  resources  of 
agriculture,  I  trust  that  nothing  will  be  permitted  to  interfere  with  their 
continuance,  and  with  that  greater  development  which  further  experience 
may  render  it  desirable  to  introduce. 


^*^^^m0^0t^^0»^^^*0^^*^^0^^^^m0^0^^m^^0mm 


THB  COMING  CHINESE. 

The  immigration  from  Europe  has  been  in  a  westward  line  and  millions 
have  come  from  that  line  of  population  to  occupy  the  virgin  soil  of 
the  United  States.  These  millions  now  seem  likely  to  be  supplemented 
by  other  millions  coming  from  the  West  and  meeting  the  great  tide  that 
has  already  poured  in  upon  us.  The  planting  of  American  interests  on 
the  Pacific  coast  and  the  discovery  of  gold  in  California  at  once  arrested 
the  sluggish  thought  of  Asia  and  turned  the  attention  of  China  to  this 
country.    Many  years  ago   the  Chinese  began  to  come,  slowly  at  first 


124  TnK  COMIKO   CHIKK8B.  [^*^t 

and  thrn  in  larger  nuraber>,  until  a  few  days  ago  a  single  stearoer  landed 
1,200  at   Sau    Francisco  ;      and   only    week   before  last,  tbe  Cbinese 
merchants  of  Sau  Francisco,  on  the  occasion  of  meeting  tbe  Coo.r  ■i^./Dai 
Committee  of    Ways  and  Means,  urged  upon  them   the  imporiaoceof 
doubling  the  subsidy  to    tbe    pHcific  Mail  Steamship   Company  fo  tbt 
it  might  engage  in  a  bi-monthly  serrice   In  order  to  accommodate  th< 
growing  business  between    China  and     ihe  Pacific  coast  of  the  United 
StHtef^.     There  are,at  least,  200,000  Cliinamen  in  vbis  country.   Tbej  bare 
spread   all    over  C.ilifornia,  their  outpos^ts  are  carried  even  Esist  of  the 
Mississippi.     Last  week  ^00  went  down  the  great  river  in  quest  of  a  oew 
home   in   Louisiana.     Tbe   population  of  China  is  variously   estimated 
at  from  400  to  500  millions.     It  is  only  within  six  years  that  the  Chioeae 
emigration   has   gained  large  proportions.    Persecuted  and  evil  eolreated 
they  have  been,  but  this  haS  not  kept    them  back.    Harsh  laws  and  a 
harsh  public  opinion  Lave  met  them,  bat  they  have  borne  all  and  qaietly 
asserted  their  right  to  labor.    That  they  are  needed,  the  immense  aoes 
of  uncultivated  land  that  we   have,  give  proof.    That  they  are  frugal, 
industrious,  teachable,  patient  and  intelligent,  even  their  enemies  coiKeJe. 
When  the  Chinese  came  to  California  and  encountered  the  hos'ilit^^ 
that  met   them,  they   found   it   necessary  to   organize  thems«^lres  into 
companies   for  mutual   protection.    There  are  six  of  the5;e  in  San  Fran* 
oisco,   directed  by  Chinese  merchants  of  standing  and  influence.    £^ 
company  represents  a  district  in  China,  and  emigrants  join  the  companj 
which   covers    the   place    from    which    they   come.      The    compaoies 
procure  labor  for   their  members  and  take  care  of  them  in  sickness  aod 
when   unemployed.    They  advance    money  to  bring  out   emigrants,  and 
then    take   the  stipulation  of  the   emigrant  for   the  speedy  repajniect 
of  the  sum  advanced.    This  is  briefly  the  system  on  which  the  false  cbar^ 
of  a  sort  of  peonage  or  slavery  has  been  based.     The   Chinese  quicklj 
made   themselves  popular  as  hou«e  servants.    They   are   neat,   orJerlr, 
skillful,  inclined  to  remain  in  a  place,  have  no  **  followers"  and  are  not 
troubled  with  a  desire  to  attend    religious  services,  either  before  breakfast 
or  after  dark.    The  ladies  admire    them  so  much  as  servants  that  thej 
will  be  likely  to  change  the  public  sentiment  of  California  in  regard  to 
their  civil   and  political  relations.    Already  housekeepers  at  tbe  East) 
wearied  and  vexed  with  the  inadequate  service  rendered  by  our  household 
dependents,  turn  with  longing  eyes  to  the  Chinese  as  auspicious  of  a  better 
and  brighter  day  in  the  domestic  economies.     Ooce  shown  how  to  do  a 
thing,  and  why.  Chinamen  need  no  farther  instruction.    Chinese  art  aod 
labor  are  the  perfection  of  imitativeness.    They  not  only  labor  in  hoDs«s, 
but  they  are  book- binders  and  printers,  setting  type  readily  io  a  laogoa^ 
they  cannot  read;  they  are  careful  and  extraordinarily  akilled  taiJois; 


1869]  THE   COMIKO    CHINESE.  125 

tbey  manipulate  the  tools  of  the  designer  and  the  carver;  thej  handle 
the  most  delicate  labor-saving  machines  with  address  and  intelligence. 
The  Pioneer  Woollen  Mills  were  or?ce  burned  because  they  eraploved 
Chinese  labor;  now  they  work  in  the  same  mills  unquestioned.  In 
gangs  of  street  laborers  they  were  mobbed  a  year  ajro;  now  they  work  in 
San  Francisco  streets  without  the  protection  of  the  police.  Quiet,  peace- 
ful and  persistent,  they  have  disarmed  muv'h  opposition.  Under  State 
enactments  they  have  paid  a  license  tax  of  four  dollars  a  month  for  the 
privilege  of  working  in  the  mines,  besides  other  taxes  they  have  paid. 
Once  the  Legislature  imposed  on  them  a  special  police  tax  nf  $5  a  month, 
but  the  Supreme  Court  pronounced  it  unconstitiitionHl.  Nearly  all  of  the 
Chinese  read  and  write  their  own  language.  They  are  anxious  to  acquire 
our  language,  and   they  send  their  children   to  the  State  Schools. 

Tlte  cost  of  Chinese  labor  is  one  of  its  great  recommendations.  The 
Chinaman  will  live,  and  save,  and  thrive  on  the  starvation  wages  of  other 
laborers.  They  can  work  for  one-third  the  co?t  of  European  labor,  so 
that  gold  mines  which  yields  97  pi'r  ton  can  be  made  productive  where 
white  labor  halts  when  the  result  is  less  than  120  per  ton.  But  it  is  as  the 
railway  ^'  navvy  "  that  the  Chinaman  has  made  his  mark.  The  builders 
of  the  Central  Pacific  Railroad  hesitated  long  before  they  employed  hira. 
He  turned  up  less  earth  at  a  shovel  full  than  the  Irishman  did,  but  he 
turaed  up  more  shovel  fulls  in  a  day.  He  knew  nothing  of  strikes.  He 
never  indulged  in  sprees  or  thirsted  for  a  **row."  A  California  rail- 
way contractor,  who  has  worked  laborers  of  many  nationalities  says,  that 
these  Asiatic  laborers  are  the  most  serviceable  and  least  troublesome  of 
any  to  be  found  on  the  Pacific  slope.  They  are  promptly  on  the  ground 
to  begin  work  the  moment  they  hear  the  signal,  and  labor  steadily  till 
Dotitied  that  the  working  hours  are  ended.  They  will,  ere  long,  turn  the 
6od  and  build  the  embankment,  on  other  line.'i,  across  the  continent, 
and  upon  the  numerous  roads  which  are  to  be  constructed  in  the  Soulhein 
States.  They  will  yet  be  familiar  faces  in  New  England  factory  towns. 

The  political  and  religious  relations  of  this  incoming  Chinese  population 
are  foreign  to  our  consideration  of  the  subject  We  look  at  the  question 
in  its  bearings  upon  population  and  m  the  grand  results  to  be  effected  in 
the  iodustriai  development  of  the  country.  Railways  and  canals^  wharves 
and  docks,  public  buildings  are  to  be  constructed.  Farms  are  to  be 
cultivated.  The  hundreds  of  millions  of  acres  now  waiting  culture  are  to 
be  made  prod  active.  Is  it  not  the  part  of  wisdom  to  execute  these 
enterprises  at  a  cost  for  labor  of  one-third  that  which  is  now  paid  ?  Great 
projt>cts  languish  because  of  the  cost  of  execution,  and  here  come  to  us 
naturally  and  easily  the  willing  hands  and  the  eager  wills.  They  come 
ju&t  fast  enough  to  admit  of  their  assimulation  with  the  various  masses  of 


126  TBB  OKITTRAL  NATIONAL  BklKK  DEVALOATXOV.  [Av^mtt 

people  that  compose  our  population,  and  which  are  rapidly  aoqoinog 
homogenity.    They  can  live  in  any  part  of  the  land,  but  they  tend  ntber 
to  the  Southern  portion  of  the  Uoion  as  more  nearly  allied  to  tbedinutie 
influences  to   which  they  have  been  habituated.    There  is  a  moveoMst 
now  in  progress  at  the  South,  to  terapt  Chinese  emigration  thither,  h 
meets  with  a  singular  unanimity  of  approval.    It  is  regarded  as  the  mem 
and  the  hope  of  a  new  and  higher  prosperity  than  has  ever  jet  visited 
those  States  productive  and  prosperous  as  they  have  been.  To  the  coqvm- 
lion   which   represents  this   movement,  a    report  has  been  made  ihsl 
emigrants  in  lots  of  50  or  upwards  can  be  brought  from  California  for  |50 
each  in  gold,  and  from  Hon^  Kong  to  San  Francisco  for  from  180  to  llOO 
in  gold.    A  Chmese  contractor  who  has  brought  30,000  Uborers  to  the 
Pacific  Const,  says  that  they  are  paid  in  California  90c  to  $1.10  ic  gold, 
per  day,  that  they  will  come  from  San  FrancLoo  to  Memphis  and  work 
for  t20  a  month,  while  if  brought  out  fresh  from  China,  they  siaj  be 
had  for  from  $10  to  $12  a  month.    He  remarked,  however,  that  at  thoe 
low  wages  they  were  likely  to  abandon  their  situations  for  higher  wagei, 
unless  security  was  exacted  of  them.    Chinese  companies  organized  in 
the  South,  with  those  in  California  might  arrange  the  proper  aeearitj. 
But  of  this   movement  we  shall  speak  again. 


^iir'>r>r»»-ii  wtorTriirww^rwr^n 


THE  CENTRAL  NATIONAL  BANt  DEFALCATION. 

A  better  proof  could  not  be  given  of  the  judicious  cboioe  which  has 
been  made  of  officers  for  our  new  National  Banks  than  the  very  rare 
occurrence  among  them  of  defalcation  and  breach  of  trust  One  of  these 
painful  and  exceptional  instances  has  recently  been  detected  and  b» 
awakened  almost  equal  surprise  and  sympathy.  William  H.  Saotord, 
the  Cashier  of  the  Central  National  Bank  in  this  city,  was,  it  seems,  one 
of  the  fiufierers  in  the  recent  Mariposa  speculation  which  terminated  so 
disastrously  for  the  holders  of  the  shares,  who  had  supposed  that  this 
highly  speculative  stock  had  ceased  to  be  the  foot-ball  of  Wall  street, 
and  had  taken  a  permanent  place  among  the  solid  securities  whote  vsIm 
would  be  steadily  but  slowly  and  surely  appreciated  with  the  inprove- 
ment  of  the  property  it  represents.  The  particulars  of  the  disaster  wbidi 
befel  this  stock  are  fresh  in  the  memories  of  our  readers  and  weie  detailed 
by  us  at  the  time.  It  is  sufficient  for  us  now  to  say  that  Mr.  Sanford, 
like  multitudes  of  other  victims,  thought  the  decline  was  temporsrj, 
and  did  not  wake  up  to  the  real  state  of  the  case  until  the  final  crash 
had  come  and  had  lefl  him  the  loser  of  one  hundred  thousand  ddlais. 
To  keep  his  account  good  with  his  brokers  he  seema  to  have  placed  io 


1869]  THK  OXNTRAL  NATIONAL  BANK  DEVALOAnON,  12? 

their  hands  Becurities  of  which  the  bank  was  the  depository  and  which 
belonged  to  various  custonaere  of  the  institution,  chiefly  to  persons  and 
banks  outside  of  the  city.  Goaded  almost  to  madness  by  the  discovery 
that  his  loss  was  irretrievable,  this  miserable  delinquent,  placed  as  be  was 
in  peril  of  the  most  severe  punishment  from  the  laws  of  bis  country, 
obtained  leave  of  absence  from  the  bank,  and,  before  bis  crime  was  found 
oQt,  put  himself  beyond  the  reach  of  pursuit,  and  is  now  supposed  to 
be  in  France  or  South  America.  The  unhappy  family  are  left  quite 
destitute,  and  no  trace  seems  to  have  been  left  by  which  he  could  be  fol- 
lowed and  brought  back  to  justice. 

Such  are  the  chief  facts  of  this  painful  case  which  has  inflicted  a 
loss  on  a  banking  institution  of  the  very  highest  credit,  and  has  swept 
away  a  part  of  the  surplus  which  belonged  to  the  stockholders,  involv- 
ing not  only  a  crime  which  has  blasted  the  career  of  a  man  hereto- 
fore stainless  and  respected,  but  has  also  grieved  and  shocked  beyond 
measure  his  wide  circle  of  friends  and  has  plunged  his  family  into  the 
depths  of  poverty.  , There  are  two  or  three  lessons  of  a  general  nature 
which  we  should  not  omit  to  deduce  from  the  event. 

The  6rst  is  the  necessity  of  enforcing  on  all  oar  bank  officers  the  strict- 
est prohibition  of  speculation.  Let  the  directors  of  every  national  bank 
adopt  a  rule  that  any  officer  or  clerk  discovered  speculating  in  the  stock 
market,  either  with  bis  own  money  or  not,  shall  be  instantly  dismissed 
without  being  allowed  to  resign.  Such  a  rule  might,  it  is  true,  be  evaded. 
But  the  men  who  would  evade  it  are  just  the  sort  of  speculators  to  be 
detected  in  some  other  way,  if  the  directors  and  the  other  officers  of  the 
bank  do  their  duty.  The  chief  effects  of  this  prohibition  would  be  felt  by 
SQch  men  as  Sanford,  who  are  self  respecting,  frugal,  honest,  but  anxious 
tu  be  rich,  and  tempted  by  the  success  of  others,  to  try  to  draw  a  prize  in 
the  Wall  street  lottery.  When  such  a  man  is  tottering  on  the  brink  of 
his  first  breach  of  trust  and  shrinks  with  the  sensitiveness  of  a  half-awak. 
ened,  half-paralyzed  conscience  from  taking  the  fatal  plunge,  let  him  have 
at  least  this  one  chance  to  rescue  himself.  Let  him  have  the  knowledge 
that  if  discovered  he  will  be  ignominiously  discharged  from  his  place 
and  will  find  it  impossible  to  get  another. 

But  it  may  be  said  that  the  brokers,  through  whom  these  bank  officers 
must  do  their  surreptitious  speculation,  would  keep  the  matter  so  secret 
that  the  risk  of  detection  would  be  almost  annihilated.  This  is  not  so  cer- 
tain. By  a  law  of  the  last  session  of  Congress,  the  broker  who  is  a 
party  to  such  defalcations  as  this  of  Sanford's,  is  liable  to  severe  penalties, 
and  it  is  not  possible  that  perfect  secrecy  could  be  preserved  in  any  such 
transactions.  Somehow  or  other  the  affair  would  leak  out,  and  the  delin- 
quent would  be  all  the  time  in  danger.    In  such  matters  it  is  of  great 


128  THB  VINANCIAL  OUTLOOK.  [AvgUit, 

importance  to  raise  barriers  against  the  first  offence.  When  a  bank 
cashier  or  a  bank  clerk  has  once  f^one  wrong,  it  is  easj  to  repeat  the 
offence.  Besides,  the  first  breach  of  trust  involves  usuallj  a  email  amount, 
easily  replaced,  though  perhaps  urgently  wanted.  Yet  if  yielded  to  the 
tem]>tation  will  grow  by  thai  it  feeds  on  till  like  a  canker,  it  destroys  and 
ruins.  Sanford  would  not  now  be  a  fugitive  from  justice  after  blast- 
ing his  own  prosipects  and  ruining  his  family,  had  he  resisted  the  Sr^t 
temptation,  which  involved  probably  a  trivial  sum.  Public  opinion  will 
support  our  banks  in  the  enforcement  of  the  penalty  ofdiemissal  which  we 
have  suggested  as  the  proper  punishment  for  a  bank  oflicer  or  clerk 
who  is  found  guilty  of  the  crime  of  speculating.  And  except  some  s':ch 
safeguard  is  given,  the  banks  must  not  be  surprised,  if  they  are  looked  o[ioa 
by  some  of  their  stockholders  and  dealers  with  anxiety  not  altogether 
devoid  of  di&trust  and  fear. 

There  is  one  other  point  which  demands  notice.  Mr.  Sanford*s  accounts 
with  thft  bank  w^re  all  in  the  most  perfect  order.  The  books  of  the 
institution  showed  nor  the  least  indication  that  anything  was  wr:^-;;. 
And  still  he  was  a  defaulter  to  an  amount  one  half  of  which  wocM 
have  been  regarded  by  him  as  an  ample  fortune.  For  aught  we  knov, 
similar  losses  might  have  taken  place  before,  but  were  retrieved  Id 
time  to  prevent  discovery.  Now  it  will  be  impossible  to  persuade  tbe 
public  that  there  is  not  something  radically  defective  in  this  loose  way  of 
keeping  bank  accounts.  If  a  bank  ofiScer  can  show  a  clean  record  oo  his 
books  after  he  has  made  away  with  $100,000  of  funds  belonging  to  his 
customers,  it  is  high  time  that  sooie  more  effective  checks  were  devised 
for  keeping  such  violent  temptations  away  from  fallible  men.  It  will  be 
well  if  this  defalcation  in  the  Central  Bank,  which  is  one  of  the  bet 
man  Aged  institutions  in  the  city,  should  draw  the  public  attention  to  thi? 
matter,  and  should  cause  some  better  guarantee  that  the  records  and 
books  of  the  bank  should  give  such  an  account  of  the  funds  in  the  haodsof 
the  officers  that  defalcations  may  be  more  easily  detected  and  more  efit^ 
tively  prevented. 


THE  FINANCIAL  ODTLOOI. 

In  the  anomalous  condition  of  our  national  finances,  every  bodyisaslic^ 
with  anxiety  about  the  future,  and  there  are  several  points  which  bk 
well  deserving  attention  ^»ith  a  view  to  forecast  what  awaits  us.  Tne  firfi 
is  that  there  is  no  lack  of  capital  in  the  loan  market.  This  capital  ni«j 
not  be  easily  accessible  to  ordinary  borrowers.  There  are  obvioas  reasoa^ 
why  it  is  hard  for  tbe  mercantile  community  and  the  ordinary  public  to 
obtain  from  tbe  banks  the  usual  accommodations  to  which  they  have  been 


1869]  TH8  FINiKOIAL   OUTLOOK.  127 

SO  accustomed  that  tbej  find  the  want  of  it  a  Berious  deprivation.  Still 
that  capital  is  here  in  large  accumulated  masseey  the  vast  amounts  of  secu- 
rities of  all  kinds  which  are  offering  in  Wall  street^  offer  a  conspicuous 
proof. 

The  second  point  is  that  this  capital  is  in  few  hands.  Never  was 
there  a  lime  in  our  history  when  capital  moved  in  such  large  masses  as 
DOW.  The  effects  which  this  aggregation  of  the  money  power  is  producing 
Iq  the  course  of  speculation  is  destined,  no  doubt,  to  produce  hereafter 
some  very  troublesome  evils.  It  has  its  compensations,  however,  for  with- 
out it  the  gigantic  strides  which  the  South  and  West  are  making  in  the 
career  of  material  progress  would  have  been  impossible.  There  is,  how- 
ever, considerable  jealousy  of  the  growing  power  of  capital,  and  no  small 
apprehension  prevaiU  lest  the  corruption  and  other  mischiefs  it  is  likely 
to  ioBict  on  the  republic  should  outweigh  all  the  advantages  it  is  likely 
to  cunfer.  Without  acknowledging  for  a  moment  the  justice  of  this  jeal- 
ous suspicion,  we  frankly  admit  that  this  growing  power  of  capital  will 
bear  watching,  and  that  some  remedies  for  the  evils  it  has  produced  and 
the  greater  evils  it  threatens  are  already  demanded,  and  should  neither  be 
refused  nor  delayed. 

The  next  point  worthy  of  note  is  the  large  profits  made  on  capital  in 
this  city.  There  are  not  a  few  national  banks  in  the  country  whose  officers 
ahiiost  reside  permanently  in  New  York,  and  use  the  n^ioney  of  the 
bank  in  Wall  street  to  much  better  purpose,  so  far  as  profit^  are  con- 
cerned, than  if  they  soberly  and  quietly  sat  still  at  home  and  lent  it  to 
their  neighbors  in  the  legitimate  way  of  loans  and  discounts.  We  do  not 
LOW  refer  to  speculative  bank  officers,  but  to  those  sharp,  shrewd  austere 
ineo  who  never  speculate,  but  always  in  a  tight  money  market  have 
large  suras  to  knd  at  the  highest  rates.  How  far  the  recent  prosecu* 
tiuns  for  usury  will  check  this  trading  in  money  we  cannot  tell,  but  there 
is  no  doubt  that  the  vast  sums  which  have  been  lending  in  Wall  street 
of  late  at  usurious  rates  were  not  wholly  derived  from  our  city  banks  or 
from  city  lenders.  A  goodly  proportion  of  the  amount  we  fear  comes 
from  country  national  banks,  which  are  technically  said  to  be  *'  run  in 
Wall  street.*'  Tnere  is  some  doubt  whether  such  banks  would  not  have 
tUip  privileges  revoked  if  these  privileges,  which  really  belong  to 
snother  State,  are  thus  transferred  to  New  York  for  the  sake  of  extra 
Hofits.  The  country  banks  are  notoriously  unable  to  make  such  large 
profits  as  the  banks  of  the  city,  but  this  is  no  excuse  for  the  abuse  in 
qaesiion.  Wo  do  not  now  discuss  this  aspect  of  the  case  however.  We 
ouly  allude  to  it  as  an  illustration  of  the  vast  profiu  which  shrewd  money- 
lenders can  make  by  manipulating  loanable  capital  in  Wall  street. 

Another  of  the  most  significant  features  of  the  financial  situation  is 

i 


128  THIS   TIKA'CIAL  OUTLOOK.  [^^^ 

tbat  the  trouble  caused  by  the  m4^>netarj  spasms  which  have  hitelj  pre- 
vailed, and  the  dead  uncertain ty  as  to  the  future  of  the  loan  market,  do 
not  prevent  capitalists  from  embarking  large  sums  in  pennanent  infest- 
ments  of  almost,  any  kind.    Railionds  are  buildiufr,  while  all  over  the 
country,  and  especially  in  our  large  cities,  new  edifices  are  going  up,  and 
on  every  side  there  are  unmistakable  indications  of  the  rapid  confersion 
of  floating  capital  into  fixed  forms.     Meanwhile,  almost  every  descrip- 
tion of  legitimate  business  is  sufiferinfr,  and  there  is  no  small  apprehenson 
among  our  mercantile  classes  as  to  the  prospects  of  the  fall  trade.    It  is 
premature  to  offer  any  very  positive  opinion  as  to  these  appreheottons. 
But  there  can  be  no  doubt  that  those  persons  are  greatly  in  error  who 
suppose  that  the  country  is  growing  poorer.    Everyone  who  is  familiar 
with  the  history  of  England  during  the  first  decade  after  the  Napoleonic 
war  will  call  to  mind  that  that  country  passed  through  an  ezperieoce  venr 
similar  to  our  own,  although  in  our  case  the  evils  are  somewhat  more 
aggravated,  because  our  currency  is  mote  deranged,  and  the  specuUtios 
bubble  of  paper  money  has  as^^umed  more  formidable  dimensions. 

From  all  tbat  has  been  said,  two  obvious  inferences  arise.  First,  there 
is  no  ground  for  fear  lest  we  are  on  the  eve  of  a  general  financial  crasb. 
The  country  is  richer  to-day  than  ever  before  in  all  the  elements  of 
material  wealth,  and  we  can  bear  all  needful  fiscal  burdens  if  care  be 
t)nly  taken  to  reform  our  internal  tax  list,  to  keep  the  national  debt  sacred 
and  to  enforce  the  most  rigid  economy  in  every  department  of  govern- 
mental  administration. 

Secondly,  the  monetary  troubles  of  the  past  six  months,  although 
artificial  in  their  origin,  indicate  a  highly  senstrive  and  excitable  oonditioQ 
of  the  financial  atmosphere,  and  as  they  may  be  repeated  ajain  and 
again,  our  mercantile  and  industrial  enterprises  should  be  kept  as  nearlj 
as  possible  within  the  limits  of  sound  prudence  and  of  bona-fide  capital. 
If  our  merchants  and  business  men  will  avoid  speculative  risks  and  trust  w 
legitimate  operations,  they  will  soon  find  the  country  recuperating  and 
themselves  recuperating  with  it.  If,  as  seems  probable,  a  beneficent  Pro- 
vidence gives  -us  a  copious  good  harvest  this  year,  north  and  south,  «e 
shall  soon  enjoy  more  obvious  and  general  prosperity,  and  joy  and  plenty 
will  cheer  those  sections  of  our  industry  where  now  gloom  and  depression 
are  but  too  frequently  found.  We  see  no  reason  to  doubt  the  aocaracj 
of  those  shrewd,  farseeing  merchants  of  this  city  who,  from  the  scardij 
of  goods  in  the  interior,  the  anticipated  good  harvest,  and  the  aubstantia! 
^prosperity  of  the  country,  are  looking  for  a  lively  fall  trade. 


1869]  RAILROAD   BARNIKG8.  129 

RAILROID  EARNINGS  FOR   JUNE  AND  FOR  TIE   FIRST  SIX  MONTHS  OF 

1868  AND  1869. 

The  results  of  the  June  traffic  of  our  railroads,  as  compared  with  the 
returns  for  the  corresponding  month  of  last  year,  are  highly  satisfactory, 
showing  as  they  do  an  increase  of  no  less  than  14.84  per  cent  in  the 
earnings  of  ten  leading  western  lines.  Not  one  of  the  roads  indicated 
has  fallen  behind  the  previous  years'  earnings.  That  these  favor^ible 
results  are  due  to  enlar«i;ed  business  is  well  ascertained,  since  the  tariff 
of  186i>,  both  as  to  passenger  and  freight  rates,  are  lower  generally  by 
several  pei  cent  than  in  1868.  There  has  been  worked  in  1869,  however, 
about  150  miles  more  road  than  in  1868. 

The  earnings  for  June  are  as  follows  : 

1809.  IWS. 

ChiMijoA  A'ton $SJ*l,Kff$  fn-^^BcM 

tCbicsKO  A  northwestern 1,2:>S,384  1,107,641 

*Chl  ttco.  Rock  L-l«nd  *  l*acUlc 608,  0«  87S,4'6 

tUilouisCt^ntral  6S8,<  19  6Sff,«49 

Marietta  A  oiDCfnnAtl 11S.S48  «S,^a 

Michig:iu  Ceotral 86rt,6i8  835,801 

Mictiiean  Sonthem 4<-8,t39  86\  It 

Milwaok^o  A  :4k.  Paul 678,800  4^8.191 

Ohio  A  M  08<88lppi : 933,336  217069 

ttt.  Loais,  Alton  A  Terre  Haute 16M^9  140,406 

Total $t,n6,M9 $4,158,161    $617,405        $.... 

The  returns  of  the  same  companies  for  the  first  half  of  the  same  years 
ihow  an  increased  traffic  averaging  of  12.36  per  cent.  The  total  earn- 
ings from  January  1  to  June  30,  for  the  current  and  last  previous  years 
were  as  follows : 

XABHINaB  raOX  JAirUAJlT  1  TO  JUKI  80. 

1869.  18«a 

ChtctgoftAlt  n $9,106,696  $1,73%418 

Chi  ai;o  A  Northwestern 6,4«8,896  6,8  1,4!)7 

Ctiicai(o,  K  ck  I».attd  A  PacUlc S,3t90,109  1,877,579 

lUnolaOeartl 8,767,531  8,:iri,»i5« 

Mar  ctU  A  Cinc'unati 6-17,^1  A6Vtt88 

Ml'hi^nC  ntral i,n8,8rt5  2,0'J5,569 

MichiKBn  ttontr  ero 9  6«4,9i6  S,«95,*^ 

MiUauk  e  A8t.  Paul 2.975,9»7  2,4S4,96) 

Ohio  ftHiasiseippl 1,374,189  1,881,079 

fit.  Loau,  Altou  AO^erre  Haate 91),7r6  83M92 

Total $26,933"lft6  $93,501,321     $2,781,881        $.... 

In  our  former  statements  of  monthly  earnings  we  included  the  Pittsburg, 
Fort  Wayne  &  Chicago  and  the  Toledo,  Wabash  &  Western  Com- 
panies. The  new  relations  of  theso  roads,  and  the  difficulty  of  obtaining 
separate  returns,  compel  us  to  omit  them.  We  also  omit  the  Western 
XJaion  Company. 


Ine. 

Dee. 

$7,1S1 

■  •  •  • 

90,740 

•  •  «  • 

129.5K4 

41,763 

•  •  •  • 

2^,8«) 

•  ••  • 

41.829 

•  •  •  • 

43.0^9 

220,609 

•  •  •  • 

6,16i 

•  •  •  4 

13,724 

Ine. 

Dec. 

$891,808 

616.n29 

452,5i0 

431,929 

71.959 

192  796 

298,899 

491,787 

«  •  .  a 

$108,'89i 

68.294 

•  •  • 

*  Miles  working  In  1888, 484;  in  1869,  601. 
t  Indnding  leaaed  lines  in  low*. 


180  PtLLIC   DIBT   AhD   FINAVCIB   07  VXW    BAMPSBIBS.     M«^ft, 

THE  FIBLIC  BEET  AND  FINAKCES  OF  KEW  lilP&niL 

Tl  e  pu)  lie  d(  bt  of  New  Harrpehire  bas  been  created  solely  hr  war 
purpopefi,  and  on  the  1st  day  of  June.  1869,  amounted  to  (b*)Ddi 
^2,849,200,  and  notes  t321,810)  tsjVl.OlO.  Tbe  Slate  also  holds  imi 
funds  to  tbe  amount  of  $42,925  22.  Tbe  followiDg  statement  deKiibes 
tbe  bonded  debt : 

Six  per  cen t  Loan  oflB61 $705,200 

Autborized  by  Act  of  July  8, 1861.  Issued  $1,000,000,  in  100s,  5CKh 
und  1,0008.  Coupons  January  1  and  July  1,  and  princifMi]  July  1, 186&- 
1875  inclusive,  the  annual  payment  averaging  about  $100,600.  Up  to 
date  $294,800  bas  been  paid,  and  $100,000  became  due  July  1,  186^. 
All  these  bonds  bear  date  July  1,  1869.    Payable  at  Boston  or  Concccd. 

Six  per  ce  »  Loan  of  1862 1294,000 

Autborized  by  Act  of  July  9,1862.    Issued  $300,000  in  5008  is 
1,000s.    Coupons  January  I  and  July  1,  and  principal  July  1, 1876-1S76 
inclusive.    These  bonds  also  bear  date  July  1,  1861,  tbe  act  autborizifif 
them  being  supplemental  to  that  of  July  8,  1861.    Payable,  interest  asi 
principal,  at  Boston  or  Concord. 

Six  per  cent  Loan  of  1864 :  .$600,000 

Authorized  by  Act  of  August  19,  1864,  and  bonds  dated  September!, 
1864.     Issued  $600,000  in  1,000s.     Coupons  M;irch  1  and  Septembr  I, 
and  principal — $450,000  September  I,  1884,  and  $150,000  September  I. 
1889.    Payable  at  Boston  or  Concord.    ' 
Six  percent  Loan  of  1866 $l,25O,C<'0 

Autborized  by  Act  of  July  7,  1866.  Issued  in  100s,  500s  and  1,00& 
Coupons  April  1  and  October  1,  and  principal  in  sums  of  |2oO,oO(l 
annually,  October  1,  1870-1874,  inclusive,  both  payable  at  Boston  or 
Concord.  The  act  as  above,  and  a  supplemental  act  of  Jane,  ISCH, 
autborized  tbe  issue  of  $1,800,000,  so  that  there  remained  in  the  Tressorr 
June  1,  1869,  $550,000  subject  to  issue,  and  which  will  probably  be  used 
in  taking  up  the  short  loans  which  mature  at  varions  dates  prior  to 
January  1, 1870.  These  are  in  the  shape  of  notes  bearing  interest  (6 1<& 
cent  $28,810,  and  1  per  cent  $293,000)  $321,810.  Under  thels*  o{ 
1868  the  Treasurer  has  also  tbe  authority  to  hire  all  the  money  that  vi^^ 
be  needed  for  the  temporary  use  of  the  State,  so  that  no  further  legisla- 
tion will  be  necessary. 

Of  the  State's  claims  against  the  United  States  for  ezpenditores  for  wir 
purposes,  amounting  to  $1,032,527  45,  there  has  been  allowed  aod  p^ 
$1,000,618  06,  leaving  a  balance  still  disallowed  of  $31|908  89. 


1869]  PUBUO   DB8T  AWD   FIVANCX8  OF  KBW   BAMPfiBIBE,  131 

The  popnlatiOD  of  New  Hampshire  in  1860  waa  326,073,  which  was 
11.74  per  cent  increase  from  the  next  previous  decennial  census,  or  1.17 
percent  per  annum.  The  population  is  now  estimated  bj  the  ^tite 
Treasurer  at  850,000,  showing  an  increase  in  nine  years  of  23,927,  or  7.34 
p'^r  cent.  This  estimate  is  based  on  a  reduced  rate  of  increHse,  and  is 
probtbly  nearly  correct,  the  retardation  to  the  extent  shown  being  due 
to  the  withdrawal  of  large  bodies  of  troops  from  civil  life  from  1861  to 
1SG5.  The  war  debt,  as  above  exhibiti'd,  divided  among  the  existing 
population  is  thus  only  $9  06  per  capita. 

The  value  of  taxable  property  in  1868  was  (real  estate  169,344,903, 
anj  personal  property  •79,720,387)  149,065,290.  Compared  with  the 
war  debt  of  the  State  this  amounts  to  one  of  debt  to  every  $47  09,  or 
2.12  per  cent  of  valuation.  The  valuation  of  1858  was  $84,758,619,  the 
increase  in  ten  years  having  been  $65,306,671,  or  78.23  per  cent.  The 
valiiHtion  of  1868  has  probably  been  based  on  a  nearer  approximation  to 
Market  rates  than  that  of  1858,  and  hence  the  enormous  a<ldition  to  the 
sQ'n  total.    The  valuation  of  1868  prives  $425  90  to  each  inhabitant. 

The  rate  of  taxation  in  New  Hampshire  is  4  per  1,000  on  the  valuation. 
Tie  amount  levied  for  the  service  of  1869-70  will  hence  be  $596,261  16. 
This  rate  covers  taxes  of  all  kinds  levied  for  State  purposes.  There  is 
Ttry  little  delinquency  in  this  State,  the  whole  sum  of  the  taxes  of  1865- 
'67  and  '8  delinquent  on  June  1, 1869,  having  been  only  $1,181  54,  an 
inBnitessimal  percentage  on  the  amount  levied. 

The  following  is  a  synopsis  of  the  revenue  and  disbursements  of  the  State 
Treasury  for  the  year  ending  May  31, 1869: 

Rkvbnub. — Cash  June  1,  1868,  $18,684  72;  taxes  of  1866,  $6  25; 
taxes  of  1867,  $1,035  63;  taxes  of  1868,  $623,S40  63;  savings  bank 
tax,  $09,017  58 ;  railroad  tax,  $215,615  00  ;  civil  commissious,  $630  00; 
'.opy right  of  vol.  46  N.  U.  Reports,  $100  00;  tax  on  foreign  insurance 
companies,  $100  00;  rent  of  storehouse,  $300  00;  war  clairasi 
i^42,158  21  ;  interest,  $4,785  65;  loans,  (school  fur.d  $25,050  00.  notes 
?4:i7,860  00, and  bonds  $242,500  00) $695, 1 60  00.  Total,  $1,70>,333  07. 

DisDCfiSKMKNTS. — Executivc  department  $3 .9 18  80  ;  Secretary's  Depait- 
Tn^nt,  $3,«53  29  ;  Treasurer's  Department,  ♦3,657  98  ;  Adjii tan t- General's 
''p^rtment,  $9,550  74;  Department  of  Public  Instruction,  $3,604  40; 
Li^islative  Department,  $47  3<'»2  57 ;  supreme  judicial  court,  $11,541  52  ; 
J  rohale  courtf>,  $7,685  65 ;  State  library,  $1,549  69 ;  compiling  firovin* 
e'l'  pajHTs,  $3,501  40  ;  State  house,  $2,757  22  ;  N.H  Asylum  for  Insane* 
^^S,^vS8  39;  education  of  the  blind,  $3,674  84;  education  of  the  rieaf 
'^fil  dumb,  $2,012  50;  reform  i^chool,  $12,182  92;  State  Prison, 
-^l<\374  25  ;  volunteer  militia,  ^35,759  77  ;  military  expenses,  $0,0 19  29  ; 
Wiiite  Mountain  road:!>,  $2,600  ;  miscellane  ms,  $5,928  11 ;  savings'  bank 


Cavh in  Treaiinry f:S0S?13 

Tuxes,  r  el  iiquent i,-st54 

Net  mcome  or  &tate  priaoii SST  a 

DeficfenCT  b?iiur   IndebtodnaM 
Jane  1,  .860 t^lV^  33 

Total $a,m»ilS 


182  FUBUO  DBBT  AND  TINAHOKS   Or  NXW  RAMPftBIBB.      [il«^| 

tax*  109,017  58;  railroad  tax*  tl00,138  61;  interost,  8225,436  03; 
pavmeDt  of  bonds,  $850,100  and  of  notea,  $139,254.  Total,  |1,62V 
299  54.     Cash,  May  31,  1860,  $75,034  18. 

Deducting  the  receipts  from  bonds  and  notes,  dcf .  (1695,160),  the  reveoaa 
amounted  to  $1,007,173  67,  and  the  payments  of  bonds  nnd  soles 
($989,354),  the  disbursements  amounted  to  $637,945  54,  which  last  Dsm«»i 
Bum  paid  the  ordinary  expenses  of  the  State,  the  distributions  lo  towof, 
and  interest  on  the  bonds  and  notes  outstanding. 

The  condition  of  the  Treasury  June  1,  1869,  is  shown  in  the  followiog 

statement : 

liabiuths. 

Bonds f2,849.MO0O 

Notes 82!,h:0  0i) 

TruBiB-  -FlJ^k  Legacy 8,W2  74 

*•         Kimbaf"    «,76<  49 

Bnrplns  levenne— principal 1,009  44 

♦•         iniere  t. 1,S:Jli  6J 

Schooinind 85,00ii0i 

Total $3,S18,ti<U  $2 

The  liabilities,  less  assets,  June  1,  1868,  were  $3,487,411  97,  and  Jud« 
1,  1869,  $3,136,879  33,  showing  a  reduction  of  liabilities  in  the  jeiir  J 
$350,682  64. 

In  New  Hampshire  the  township  system  is  carried  out  to  its  full  extest 
and  there  appears  to  be  very  little  cohesion  of  the  one  with  the  oU>er, 
the  counties  being  merely  so  many  court  divisions.  The  towna^  ind«^I, 
are  so  many  little  republics,  managing  their  own  affairs  and  disbursing 
their  own  revenues.  It  thus  happens  that  if  desirous  of  acquiring  a 
knowledge  of  the  exact  measure  of  their  burdens  and  abilities  we  mitst 
canvass  the  affairs  of  each  town  within  itself,  and  so  the  returns  of  eM'h 
are  published  separately  by  the  State  Treasury  Department.  It  is  impu^- 
sible,  however,  to  transfer  these,  from  230  towns,  to  the  Chroniclb,  »n^ 
hence  we  cluster  them  in  counties,  naming  the  number  ot  towns  incloded 
in  each,  the  amount  of  their  debts  and  assets,  the  highest  and  lowest  r&je 
of  taxation  in  the  towns  of  the  counties  named,  and  the  highest  and  lowest 
tax  on  each  poll  therein.    The  following  is  the  county  summary  : 

No.  of      Total  ATallable  «-Tasi>.$l(MV^^Tazp  pol^ 

Conntlea.                              towns.       febt.  s^sets  n.  L.  H  L 

Bockingham .  SB  $l,8S8,y01  64  1119,616  S6  $5  UO  $183  f^  »  |i«« 

Stafford 18       667.039  86  44,947  60  S  81  140  4  80  Stfi 

Belkiap. 10       49^.880  98  46,flMt  li  S  58  191  a»  1  ^^ 

Cam!] 17       443,mJ0  09  B0,0ff7  07  4 '1  « 08  6  55  SIJ 

Meniroack  SS    1,8S(>,891  (9  1I98S6»  183  101  4  v4  l«^ 

BUIebor  ugh 80    1.9  8.676  64  140,0^68  8  4f  148  8  68  i]^ 

Che  hire $9       686,964  14  41,799  16  8  1(^  115  4  66  l^ 

HnDlvan 15       468,V18  40  44.926  86  9  14  196  8  «9  I  ^"^ 

Graf'on 88    1,044,890  41  164,010  84  6  98  188  T  91  1^ 

Coos 91       808,1:486  68,168  48  4  60  184  6  90  1^ 

Total 8~0  $V14,446  84     8886.064  64     $6  88     $101     rTu    ^^ 


*  Diyided  to  the  wrenl  towns  of  the  State. 


1860]  CHIOAQO,  ROCK  ISLAND    AND  PACIPIO   RR.  133 

The  highest  taxed  town  in  the  Stat^  ift  Thornton,  in  Grafton  County, 
and  the  next  highest,  Gosport,  in  Rockingham  County ;  and  the  lowest 
taxed  town  is  Cambridge,  In  Coos  County.  The  net  reduction  in  town 
debts  durinsr  the  years  1868-69  was  t'7'',622  04,  the  increase  having 
been  $151,764  06,  and  the  decrease  $2*29,386  10.  Almost  the  vhole  of 
these  debts  have  been  incurred  for  permanent  improvements,  which  have 
tended  to  the  rapid  development  of  industry  and  wealth  in  the  State. 

CHICAGO,  BOCK  ISLAND  AND  PACIFIC  RAILROAD. 

The  Rock  Island  Road  formed  a  junction  with  the  Union  Pacific 
Railroad  on  the  11th  day  of  May,  and  on  the  7th  of  June,  1869,  a  second 
line  between  Chicago  and  the  Missouri  River  was  opened  to  travel  and 
transportation.  This  is  another  great  triumph  of  national  enterprise,  and 
SD  Assurance  of  a  prosperous  future  to  our  vast  territories  beyond  the  Mis- 
souri. The  extension  has  added  140  miles  to  the  company's  lines,  which 
at  the  present  date  consist  of  the  following  divisions  and  branches : 

MllM. 

Cbfct^,  lit.,  to  Hock  Island,  HI 182 

Rock  I-lan  i  bridge  over  the  Mis^Ucippl % 

Dave  port,Iow«,   o  i he  Missouri  River 810 

Length  ftcm  Ch'ca^o  to  tfie  MIrs  nrl  BlTer 494 

HUtoo,  Iowa,  to  Washington,  Iowa 60 

Total  length  ofline  owned  by  the  company 044 

To  this  must  be  added  the  Peoria  and  Bureau  Valley  Railroad 
(leased),  extending  from  Bureau  Junction  (114  miles  west  of  Chicago)  to 
Peoria,  46  miles — making  a  total  length  of  600  miles  of  road  under  a 
sini;le  management.  During  the  year  the  cost  of  new  construction  and 
equipment  has  been  $«5,102,609  03,  exclusive  of  improvements  and 
renewals  on  the  old  lines.  Further  sums  will  be  required  for  ballasting, 
perfecting  and  equipping  the  recent  extension.  Tiie  company  will  also 
expend  during  the  current  year  nearly^  $800,000  in  improvements  in 
Chicago. 

In  the  following  tables  we  compare  the  company's  operations  in 
1668-69  with  the  same  in  1867-68  : 

LOCOMOTIYSS   AND   OARB. 

Statement  giving  the  number  of  locomotives  and  cars  owned  by 
the  company  April  1, 1867,  and  at  the  close  of  the  fiscal  years  ending 
March  31,  1868  and  1869: 

1867.  18^8.  1889.  Inc.  Dec 

IWoolbarnfng 85       87       S4       ..       U 

LocomottTeg.-{OoaJ  burning 67 

(  Bi*thoeac  iptiona ■ ».^«      03 

Coacbee 46 

baggage,  mail  and  ezpresB •      SO 

StocJi •••     SOS 

Ctn  Box 1,109  l,aJ6  1,684 

■*  Klat,  468 

Drovers 

Pav 111.. 

.Allkiads. 1,816  8,080  9,666     710 


87 

94 

■  • 

68 

83 

86 

96 

107 

16 

48 

49 

8 

S3 

98 

8 

810 

887 

86 

,91)6  1,684 

435 

491 

060 

1»1 

8 

8 

8 

134  OHIOAOO,  BOCK  ISLAND  AND   PAOIFIO   BR.  [AvffUt^ 

The  comparattve  results  of  operations  in  the  fiscal  years  1867-4S8  lad 
1868-69  are  shown  in  the  foltowinc;  tables: 

XILU  BUH  BT  BVOlim  SAtTUirtf  TBAIKa. 

1887-46*  1888  SS«  Idqtmm. 

Pafpenger  enfllres 675,918  8tn,B49  SI,«W 

Freight  engiDM 1.1M.489  I,e09>fl9  6n,8IO 

Wood  and  Kiavol  engines 171,885  S14,A15  48,880 


Total  by  all  engines « I,nw,fl87        8.616,078         SIM'S 

Cost pw mile  run 8t.64ctt.       96.MctB.  8.1D< 

PABSBHOBB  TBAIVIO— IT!  DIBBOnOV  UTD  AMOUVT. 

1867-68.  ie68-4». 

Paisengen,  throQffh 68.H88  69,7SS 

way 607,471  6*17.797  Sf*. 

"           Ba»t S71,«68  806,891            S5,l«        

*•           W»ar. 98S,0S1  881,864  8M58        ....~.. 

Pas'f^ngen  Of  all  kinda 6m,8fH  687,&n6  67.811       ...  ^ 

Pass(>ngers  one  mile 89,185,470  81.SV.6F0       8,161,180         

Arerage  rate  per  mile 4.19cta.  Clicta.        O.lteU 

ISBI«HT  TBAlTIO-m  SIBBOnOK  AVD  AJfOUHT. 


1S87-S8.  188M0 

Loaded  cars,  eastward ^•.•. 89,869  61«6fit  li.S4       

"     westward 85,746  68,877  lai^tt        

"        "     ho  h  ways 76,H»6  105,689  an.4»4 

Freiih' (tons)  Tarried 664.485  806.788         168,868       

Tons  p* r  c  r  (average) 888               7.S4            l.Cldi. 

Tonaonemile 87,^».t98     119,974486     88.451,948        

ATerage  rate  per  ton  per  mile.. 8.86cta.         i.96cts OSTetL 

riNAKGIAL    RESULTS   OF   0PBRATI0V8. 

The  financial  results  of  operations  for  the  last  two  years  are  6how8 
in  the  following  comparative  statement : 

1887-4^.           1888-89.       laenv,  DecrMe. 

Passenger  earnlDgs $1,181,563  67  $1,898.6  4  84  $111,04117    

Freight  ''        8,934,604  15     8,676,915  66     611,11141    

Mall                  "        86,74816          84,84848     $1^5 

Bz  ress          *•       l**,70l  11         81.88H  88     47,8«« 

Kento,  Ac 64,510  68  7«>.816  87         6,7M  64    

Interest  onloans,  Ac 105,941  68       176.906  7T      10.9CS  19    ♦♦ 

Total  ezpen  es $4,461,974  99  $5.981,fl79  7S  $780,006  46    

Operating  expenses... 9,0t0,19i  07     8,866,679  18     »46,487  06   


Xamingt  less  expenses $8,461,788  88  $8,866.800  68  $488»619  40    

Which  remainder  was  disposed  of  as  follows : 

Legalexpenses m^98  96         $6,88114    $ $16k99fl 

Taxes  on  reaUstates 107,989  89        11H,158  85       10,«S8  46    

IT.  .<«.  OoTernment  tax 84,110  64  81,4«6  «)9  SIS  45    

Bent   fP.  AB  V.  K.B 195,U)0  01        lS6,0<lu  00     

Interest  on  ho^ds 876,*.40  00        607.65179     891,81179    

Dividends  inc  QdiDg  tax 067,8^10      1,469,968  60     518,147  40    ;• 

Borplos  to  cred  t 809,086  74        445,078  85     lC4,SRfli 

Included   in   the  operating  expenses  are  the  following  renewals  sod 
repairs  of  rail : 


Track  re-laid  with  n»w  Iron 14.6Qm.  14  66m.  0.06m 

"        "       re-roledlron 90.00  18  00  ...  «.0»»- 

"         "       withsteel 0  66  18.00  18.44  


ToUIrenewals S'.eOm.  45.5<sm.  10.       .         _. 

Bailsrepalnd 88,608  91,457  t.m 

GENBRAL   AOCOirKT — LKDOBR  BALAK0E8. 

I 

Thid  financial  condition  of  the  Company,  as  of  April  1, 1868  and  IS69 


i 


18691                        CHIOAOO,  BOOK  I8LAVD  AKD  FAOIVIC   RR.  185 

shown   on  the  balance-sheets  of  date,  is  epitomized  in  the  following 
statement : 

18BS.  18fi0.  In€reafte.     I>ecrea86. 

r^pi'Al  Ptook $t4«000  0n0  00  $14,(HK),(X«0  00  I    f 

C.  A  R  L  mortgage  bonds 1,897  WW  00  1,8»7,000  00    

4.'.  &  K.  I.  1  cme  bmds 4^000  00  89,0.0  00    13,000  00 

C..  K.  I.  A  Padflc  mortgage  Binking  ftind 

bond:* 6,:SS3,000  00  7,876,000  00    548,000  00    

C.  R.  I   APrfcificRR.  Co  ofloWA Gt).',853 -TS  49,85    75    Mu^^HX)  00 

7?aiiro2&*l  Brifige  C  mpa  7 100,000  00  (KstiOO  ()0    40,0  0  00 

Oih.TC  «dit  ba'muces 4d,»f3  67  7,71 «  78    88,5d0  86 

balaLca  ot  income  aocoant I,»i,6ti6  17  1,007,944  02    446,578  85      


Total $84,100,781  49 184,515,809  49  $3S6,08d  00  $ 

Against  which  the  following  accounts  are  charged : 

Coit  of  ro«d  A  #qii1pmenU $17,851,4^  47  $8i,444,8»  50  $5,192,800  OS  $ 

Tra»te   for  gaiir.  boLd« 74.8u6  96  61,  »)  08       18,480  88 

B.  E.  A  W.  Oommittt-e 1,086  69  1,(^69       

Tra8'.eeL.Q  DiYAlon..  17.086  «7  19,064  88  8,017  85       

CvTu  Ex.  Bank,  N.  Y l,7^6,*Wi  I6     1.7W,885  16 

Ui  OQ  Nat.  Bk,  Chicago ....      1,S00,<KX)  00     I,50»,0fl0  00 

Bond '  c  *t  o  8pi>Gial  Ke0.,|Jano  7, 1867.        8&6.^6:1  50         18,061  87      437,f  0 1  63 

C.  ►    I.  A  P.  coap.  aca 6.419  80     6,il989 

B\Il9  recelvab  e 2,7ai,8;0  00        889,R70  00 2,481,600  00 

Ca.hiu  hands  of  \»Matant  Treasurer 1177,046  08    1,177,046  03      

Ca«h  in  handa  Cashier 678,675  84        606,0^9  85      78,''87  69 

Trtal $84,160,7:^1^  $M,51i,809  49    $355,088  00    $ 


The  mortgage  bonds  of  the  late  Cbicago  and  Rock  Island  R  lilroad 
Company  ($1,397,000)  will  fall  due  July  10,  1870.  The  bonds  of  the 
Hailroad  Bridge  Company,  guaranteed  by  the  railroad  company  ($400,- 
000),  will  become  due  Jan.  1,  1870.  Both  these  liabilities  will  be  paid 
or  exchanged  for  Sinking  Fund  bonds. 

A  contract  has  been  enUred  into  between  the  company  and  United 
States  GoTernment  for  the  erection  of  a  bridge  between  Rock  Island 
and  Davenport,  with  a  view  of  changing  the  location  across  the  island  of 
Hock  Lland  to  accommodate  the  government  works.  The  company's 
proportion  of  the  cost  will  be  |GOO,000,of  which  $300,000  will  be  required 
during  the  year  1869-70. 

GENERAL   REVIEW   YOR  TEN   TEARS. 

In  the  following  table  we  give  the  cost  of  the  road  and  equipment 
(estimating  the  cost  of  the  Peoria  and  Bureau  Valley  Railroad  at 
12,100,000),  and  the  earnings,  expenses  and  profits  from  operations  yearly 
for  the  ten  years  ending  March  31,  1869 : 

^     ,                           Milw  OMinarj  Proflta  TnterH  on  '  IvirieMd  Balance 

J}*^                        of  Koad  Orosa  Operating  or  Nett  Fanded  pai  1  on  aftrLeaaa 

}J^^                             0»>en  Btr  met.  flSxpenrfea.  BarnloiZB.  De>*t.  8tO'it.    laxert.Ac. 

JJ^ 8«4  $1,0*.J,hJ4  $ttJi,661  $171,:!^  $»7,7.l0  $167,697     $120,.84 

i^Ji-W 8».4  i,16J,0W  7  8,0.4  153,961  V  90       4M8t 

*2V2 *^-*  •1,054,114  ♦581,1S7  58i.a7  •97,7*0  168,090         «<,88S 

JJt? *^^  *  1,589,141  »)0.<W7  7-28,n4  100,183  «88  i-W         •:4,74« 

}*^» 8«4  8,14»,d.5  1,010,468  I.IOJ  413  1».',HW  8I5,4!M       88«,ll8 

J5*5 *«.<  8.«59,85W  1,467,661  l,»»l,70l»  1««,5S1  875.04      I,u56,a50 

llrS-  • **^-'*  S,154»«5  1,711,454  l,44i,  81  101,58>  6.11,579       «8I,«88 

;S"!2 ^1"0  8,571,(«8  1,H»7,858  1,716.181  v96,l;W  «» 879       «  e,935 

{351S •*•»*•*>  4,451,974  8.'8J.1.«  8.491,754  576,40  95T8il        60:i,«  87 

"®«3 686.0  6,811,980  8,866,0.9  8,8A*)1  6iT,5M  1,469,968       445,579 


136  THB   U8UR7   FROSKCUTIOSS.  [AftfUtj 

MABKCT  YALDK   07  STOCK   AT   V&W  TORK. 

The  course  of  the  company's  stock  at  the  New  York  Stock  Board 
moiitlilj  for  the  five  years  1864-69  indusire  is  shown  in  the  anseied 
abstract  from  the  published  returns : 

Months.                                  186MS.              IS^ «.  ISOt-T.            1987-S.            18^t. 

April no   (ifAU  61K<?^!«S  110    (^\nj4  86>ASSSi     n  ^fl 

II117  lUS    ^0\i9  91    (Tt:  05  90    (Tp  9  Jtf  86%^  9iH      9^\''4Lft'V 

Jobe 110    Qr/nyi  W    (^lOi  91    0^  9'»%  8':\^  9i\      %;.-lpl05% 

July 107i(^U4  lOlV^  0  X  94S(^4<l8  96}%0AOA  10     (tm)i 

Aognet l(]ti}imHX  18    m^  K'S^i^^llO  9i^\^TM<l^%      y?^-'^  li)i 

September..^ 9ft    (r<>  0S»^  !08i<(ri&liS3^  lOb^t^rAmK  W    ^i;.l«  lO3ii%104)( 

Ociober 855<(?r.  m7  105    (TMliX  1<»    ^'HX  91    ^  01  H   ^  w¥ 

M<ve<ber «»    ((oUO  iai^(r(.l<«K  100    ^i»3i4  9*H'i^  9Ui  30     ^li^3i 

Decemljer lOIHCri^lO^l^  1U6X<^108*^  lOi    Ot'^i^X  ie>a99«(  ItfiV^^i-l  ^ 

Jifi-arT  8^3)|(^^^0)i      9 >>. (ttluf^ji  91    moi^  9SS^100y  117S'.ll>&X 

Ftbnuiry »>>t(it,  \fSii  9'(    ^1U7  96    ^OiK  95    ^i^m.X  1»>^^«  8* 

lUrcli 85^(^100  l04Ha^lld5i  9^^^  985k'  91^&  93^  XSIS^IU 

Tear. 8IX^1S«        SlX^il^^iV     SO   ^liSX     85><dlOS        S6  d'^SSJK 

Former  articles  relating  to  this  company  were  published  in  the  Cbbov- 
ICUB  of  June  23, 1866;  June  22, 1867,  and  August  29,  1868. 


^^<»^»#»#^#»^^^»^^*N#»*»^fc#»^N*^^^^WP%<"i^«^^«^^^^^ 


THE  USURY  PEOSECUTIOSI 


All  the  brokers  and  Wall  street  bankers  who  have  been  pro«eented 
under  the  Usury  Law  of  this  Slate  have  pleadea  guilty  and  await  seih 
tence.  As  these  are,  we  believe,  the  first  prosecutions  under  a  Uw  passed 
more  than  thirty  years  ago,  we  hope  thai  the  court  will  use  lenity.  Ths 
extreme  punishment  allowed  by  law  is  three  months  imprisonment  sod 
a  fine  of  one  thousand  dollars.  The  judge  may  remit  Uie  imprison- 
ment  and  reduce  the  fine  as  he  pleases.  It  seems  to  be  generally  beliered 
that  sentence  may  be  held  in  suspense.  These  trials  have  produced  i 
good  deal  of  excitement  in  certain  circles  in  Wall  street.  And  tbe 
most  noteworthy  fact  about  the  prosecution  is  that  it  stopped  the  high 
rates  of  interest,  so  that  the  mercantile  community  have  been  able  ever 
since  to  obtain  the  usual  accommodation  from  the  banks.  It  is  this  dream* 
stance  which  has  caused  the  usury  law  to  be  regarded  with  more  general 
favor  than  formerly  in  New  York. 

The  spirit  of  modern  legislation  is  adverse  to  attempts  to  govern  by  lav 
the  price  of  com  modi  ties  or  the  rates  of  loans.  Supply  and  demand  are 
believed  to  be  better  regulators  of  contracts  and  prices  than  the  wisest 
human  restrictions  and  the  best  Luroan  laws.  Accordingly  the  usurv 
law  of  this  State,  although  it  was  passed  in  1837,  has  never,  we  believe, 
been  put  in  force  unUl  now.  Still  it  has  been  kept  on  the  statnte-bool:, 
and  the  numerous  attempts  to  repeal  it  have  always  miscarried.  Tbeie 
attempts,  we  understand,  are  to  be  repeated  next  winter  at  Albany,  with 
what  success  remains  to  be  seen.    For  the  present  the  law  is  more  popolar 


ISQ9]  THE   VSURT  PROBKCUTIOKg.  137 

t^an  it  has  ever  been  before;  for  to  it  the  people  ascribe  in  part  their  relief 
from  those  fierce,  prolonged  spasms  in  the  money  market  which  suspended 
the  collections  of  our  mercantile  houses,  and  made  \t  impossible  for  almost 
evervbody  to  get  in  his  debts.  The  debt-paying  mnchinery  of  the  country 
was  deranged  and  controlled  by  cliques  »iid  speculators,  who,  to  fight  their 
own  battle^,  succeeded  in  throwing  into  confusion  the  financial  arrange- 
ment-«  of  this  metropolis,  with  great  consequent  damage  to  the  business  of 
tiie  whole  country. 

It  has  been  urged,  and  we  believe  with  justice,  that  some  of  the  per- 
sons who  have  been  prosecuted  were  mere  agents  and  had  nothing  to  do 
except  as  accessories  with  the  schemes  of  the  ti^rht-money  ring.  This 
extenuation  may  properly  be  pleaded  as  a  ground  for  inflicting  a  lighter 
[unishment.  But  the  favor  has  been  asked  for  on  other  grounds.  And  it 
would  not  be  easy  for  any  judge  to  discriminate  between  the  various  degrees 
in  which  each  of  the  convicted  brokers  is  implicated. 

The  popular  approval  of  these  prosecutions  must  not  be  taken  as  evi- 
dence that   any   severe  penalties  are  desired.     What  the  people  wihhed 
to  accomplish  was  first  to  stop  the  monetary  spasms  and  to  relax  the 
tourniquet  with  which  the  cliques  had  strangulated  business  and  arrested 
the  vital  functions  of  oui  internal  commerce.     The  second  object  was  to 
prevent  a  repetition  of  such  a  conspiracy.     Never  before  in  this  city  has 
so  bold,  so  rich,  so  adroit  a  clique  been  formed.    It  was  small,  compact, 
but  as  usual  has  failed  in  its  chief  objects,  which  were  to  break  down 
the  prices  of  government  stocks  and  other  securities.     This  depression  of 
sto<ks  was  to  be   produced  as  a   result  of  monetary  stringency.     Stocks, 
however,  were  sustained,  and  the  clique  found  that  its  profits  went  to  the 
nioney  lenders,  many  of  whom  fell  gladly  into  the  plan  of  charging  high 
rates  for  money  and  lent  themselves  in  various  ways  to  the  projects  of  the 
speculators.     There  were  thus  implicated  in  the  trouble  several  indepen* 
(leut  parties  all  united  in  the  single  object  of  tightening  the  money-maiket. 
S^jrae  had  the  ulterior  aim  of  putting  down  the  price  of  government  bonds, 
others  of  depressing  the  railroads,  while  others  again   had  no  other  aim 
than  to  lend  their  funds  at  the  highest  possible  rate  of  interest,  recrardless 
of  the  mischief  and  commotion  they  were  producing  by  this  concerted 
i^ttack  on  the  money-market.    It  might  be  a  useful  task  to  detail  the 
methods  and  devices  by  which  these  adroit  and  skilful  assaults  on  the 
money-market  were  made,  and  it  would  at  any  rate  be  gratifying  if  we 
could  show   that   the  profits  of  the  campaign    passed  over  the  guilty 
parties,  and  that  the  chief  conspirators  were  no  more  successful  than  they 
deserved  to  be  in  making  gain  by  their  manoeuvres.    This  circumstance, 
however,  would  not  be  sufficient  to  prevent  similar  enterprises  in  the 
future.    Accordingly,  the  popular  desire  seems  to  be,  that  if,  as  is  probable, 


188  TBB  TBKVAHTCFSO  BOUTB.  1^*^*^ 

the  offenders  who  have  jast  been  prosecuted  aod  await  the  seoteooe  of 
the  law  8  ould  be  let  off  with  a  slight  puniabment  bj  the  oourt^  there  sboald 
be  a  distinct  understanding  that  in  future  the  law  will  be  put  io  force  if 
another  combi nation  or  conspiracy  to  produoe  a  fi oancial  spasm  should 
render  it  needful. 

Such,  we  believe,  is  the  public  desire,  and  if  the  usury  law  sboald  tbu 
be  rendered  more  stringent  and  should  become  a  more  prominent  ^art 
of  our  State  legi^lation,  the  cliques  have  the  sati^^faction  of  koo»iDg  tbst 
it  is  the  work  of  their  own  hands  and  the  fruit  of  their  own  devices. 


M^*^a^«^k^«^M^i^«^«^i^«^M^k^«^k^«^«^«^*^i^ 


THB  TEHUANTEPEC  lOUTB/ 


I 

The  proposed  railroad  across  the  Isthmus  of  Teh  u  an  tepee,  the  conttrve-  j 
tion  of  which  has  already  been  undertaken  by  a  company  of  A<iteri««i  | 
capitHlists,  is  an  enterprise  of  the  greatest  importanc*'  to  the  coranieroil  i 
intereRts  of  the  country.  For  several  years  the  preparations  for  tliis  work 
have  been  quietly  progressing,  under  the  diiection  of  some  of  our  leulii^  .i 
capitalif^tA,  and  everything  is  now  ready  for  the  immediate  con»troctioi  *i 
of  railroad,  carriage  rond,  and  telegraphic  communication  from  ocean  to  i 
ocean,  across  the  Isthmus  ;  Mr.  Mar^ball  0.  Roberts,  of  thi^  dty,  bating,  -j 
as  we  are  informed,  signed  the  company's  bond,  as  surety,  in  the  penalty  of 
(100,000,  in  gold,  for  the  construction,  within  eighteen  montha,  of  a  rsr-  j 
riage  road  and  telegraph  line  along  the  entire  line  of  the  propoi^ed  r«il*  -| 
way,  to  assist  in  building  the  latter.  We  are  also  inf  irmed  that  the  n^  .\ 
itself  is  to  be  begun  within  two  years,  and  completed  within  five;  the 
work  to  progress  at  the  rate  of  fifteen  leagues,  or  one  third  of  its  eniin  i 
length,  eHch  year.  From  the  elaborate  and  elegant  octavo  volume  of  209  | 
paue9,  prepared  under  the  able  direction  of  Mr.  Simon  Stevens,  Pre«id«st  i 
of  the  Company,  we  learn  many  facts  regarding  the  Isthmus  of  Tt^fausB-  | 
tepee,  as  well  as  of  the  proposed  railroad  and  its  advantasices,  that  srvof  | 
great  importance  and  interest.  The  volume,  indeed,  is  wholly  without s 
rival  in  the  literature  of  the  great  material  enterprises  whioh  charncierxe 
the  present  century;  presenting  not  only  the  resources  and  prospects  of 
the  company,  and  the  results  to  be  accomplished  by  the  successful  coni- 
pletion  of  the  work  they  have  undertaken,  but  a  fund  of  us^hil  and  vtla- 
able  information  for  the  general  reader  as  well,  which  would  insure  for  it 
a  careful  perusal  by  the  intelligent  reading  public  throughout  the  coou try. 
The  following  summary  of  the  contents  o'  this  comprehensive  volo  e»ill 
doubtless  be  found  of  much  interest  by  many  who  cannot  readilv  ohu^o  it. 

*  /h«  Tthwmtepte  SaUwair:  lU  LooaOon^  JfMmw  and  AthmUoffti,  ao4er  tbe  U  9«t 
Grant  Oi  itMi.    D.  Appieton  A  Co. 


1869]  TBS  TSHUAHTRPSO  ROUTJE.  189 

The  bistorj  of  the  present  enterprise  is  briefly  told,  altbougb  a  glance 
at  bistory  will  show  tbat  the  project  of  opening  inter-oceanic  com- 
munication across  tbe  Isthmas  of  Tebnantepec  was  first  proposed  by  the 
daring  adventurer,  Hernando  Cortez,  as  early  as  1529.  It  was  not  until 
more  tban  three  centuries  later,  however,  tbat  tbe  Mexican  Government,  on 
tbe  7tb  of  October,  1867,  made  a  concession  for  seventy  years,  to  a  com- 
pany organized  by  Don  Emitio  La  Sere,  of  tbe  right  to  open  inter-oceanio 
communication  across  the  Isthmus  of  Tehuantepec  by  railroad,  carriage- 
road  and  telegraph.  This  concession  also  grants  large  tracts  of  valuable 
lands  to  tbe  company  which^  together  with  the  proposed  road,  is  declared 
free  from  taxation  or  imposts  of  any  kind  by  tbe  Mexican  Government^ 
except  the  payment  of  twelve  cents  for  each  through  passenger,  and  eight 
per  cent  of  the  net  profits  whenever  dividends  to  stockholders  shall  be 
declared.  This  grant  was  confirmed  by  the  Congress  of  tbe  Mexican 
Republic,  with  a  few  modifications,  on  the  29tb  of  December,  1868, 
approved  by  the  President,  January  2, 1869,  and  duly  officially  published. 
Pursuant  to  said  grant,  Don  Emilio  La  Sere  formed  tbe  Tehuantepec 
Railway  Company,  composed  wholly  of  citizens  of  tbe  United  States ; 
and  this  company,  in  November,  1868,  obtained  a  charter  from  the  State 
of  Vermont,  incorporating  it  with  a  capital  of  $18,000,000,  divided  into 
shares  of  $100  each.  The  Company  has  received  from  La  Sere  the  assign- 
ment of  the  grant,  as  intended  by  the  Government  of  Mexico,  and  entered 
into  a  bond  to  that  Government,  in  the  sum  of  one  hundred  thousand 
dollars,  for  the  construction  of  the  road  in  compliance  with  the  terms  of 
tbe  grant« 

In  connection  with  the  proposed  railroad,  the  enterprise  contemplates 
tbe  establishment  of  such  lines  of  steam  and  sailing  vessels  as  may  be 
foand  necessary  to  meet  the  demands  of  international  commercial  inter- 
course. On  the  Atlantic  side  of  the  Isthmus  the  road  will  begin  at 
Minatitlan,  a  town  situated  on  the  Goatzacoalcos  River,  twenty  miles 
from  the  Gulf  of  Mexico.  This  point  is  at  all  times  and  seasons  accessible 
to  sea-going  steamers,  and,  with  tbe  improrements  to  be  made  and  the 
lighthouses  to  be  built,  there  will  be  no  difficulties  to  be  encountered  by 
vessels  entering  the  river.  From  Minatitlan  the  line  takes  a  direction 
almost  due  south  to  the  Pacific  ocean,  which  it  reaches  at  the  port  of 
Ventosa,  distant  162  miles  from  the  northern  terminus.  The  bay  at  the 
month  of  the  Tehuantepec  River  was  for  a  long  time  regarded  as  the  most 
convenient  terminus ;  but  subsequent  investigations  have  revealed  the 
fact  that  even  a  better  harbor  can  be  obtained  at  Salina  Cruz,  about  three 
miles  westward.  From  the  interior,  the  approach  to  the  shore  is  easy, 
and  tbe  topographical  features  such  as  to  make  the  site  suitable  for  the 
erection  of  all  neoeseary  buildings,  or  even  the  growth  of  a  new  city  • 


140  THE  TBHUAHTCPBO   ROOTS.  [AngUiij 

The  nncborage  h  excellent :  the  shore  being  so  bold  that  from  18  to  28 
feet  of  water  oan  be  obtained  at  a  very  short  distanoe.  Nature  has  done 
much  to  prepare  the  way  for  the  construction  of  the  necessary  improf^ 
ments,  whioh  can  be  erected  at  a  very  reasonable  cost. 

Unlike  the  deadly  and  pestilential  swamps  of  Panama,  the  eounlrj 
along  the  line  of  the  proposed  road  includes  some  of  the  loveliest  valleys, 
the  most  fertile  stretches  of  high  table  land  and  luxuriantly  prodnctire 
'*  bottoms''  to  be  found  on  the  American  Continent.  It  is,  to  the  very 
highest  degree,  available  for  agricultural  purposes,  and  abounds  in  gold 
and  silver^*  placer"  diggings,  and  petroleum  springs.  The  land  granted  to 
the  Company  comprises  a  belt  twelve  miles  in  width  extc^nding  along  the 
entire  length  of  the  road  ;  in  conceding  which  the  Government  of  Mexico 
has  not  only  given  a  magnificent  proof  of  its  enlightened  interest  in  this 
enterprise,  but  has  endowed  the  corporation  with  a  property  which  needs 
only  to  be  truthfully  described  to  add  materially  lo  their  financial  posi- 
tion ;  for  each  alternate  league  of  the  public  lands  on  either  side  of  the 
road,  or  on  a  strip  of  territory  two  leagues  in  width,  is  permanently  conveyed 
to  the  corporation,  in  fee  simple.  Ah  the  road  is  to  be,  in  round  nnmben, 
fifty  lengues  in  length,  a  rough  calculation  reveals  the  fact  that  a  landed 
est»ite  of  great  value  has  been  added  to  the  other  productive  resouroes  of  the 
Tehuan tepee  enterprise.  The  lands  abound  in  India-rubber  and  mahogsDj 
trees,  dyewoods  of  the  most  valuable  kinds,  medicinal  planta  of  great 
commercial  value,  native  hemp  or  ixtU  in  unlimited  quantities,  cocoa, 
cochineal,  sarsaparilla  and  numberless  other  plants  indigenous  to  the 
country.  The  soil  and  rlimate  are  admirably  adapted  to  the  suocesaful 
cultivation  of  coffee,  indigo,  tobacco,  rice,  pepper  and  maixe.  The  coffee 
of  this  region  is  only  second  in  quality  to  Java.  The  foreals  may  be 
made  to  yield  unbounded  supplies  of  tar,  pitch,  turpentine  and  rosin.  All 
tropical  fruits,  such  as  oranges,  lemons,  pineapples,  bananas,  etc^  are 
abundant;  and  even  the  most  careless  and  inefficient  cultivatioa 
stimulates  them  to  a  most  luxuriant  production.  So  that,  whether  as 
primeval  wilderness  or  as  cleared  and  cultivated  land,  the  domain  of  the 
Tehuantepeo  Railway  Company  may  be  made  immediately  productive, 
and  a  local  tariff  built  up  in  all  respects  sufficient  to  warrant  the  cod- 
Btruction  of  a  much  more  expensive  line.  And  this  is  certainly  a  most 
important  feature  in  the  prospects  of  any  enterprise,  as  affording  a  basis 
for  safe  operations,  which  is  not  always  obtained  even  in  more  densely 
populated  regions.  It  is  with  a  view  to  the  development  of  the  rare  rioh* 
ness  of  this  lavored  province,  quite  as  much  for  the  inter-oceanic  transit, 
that  the  Mexican  Government  has  made  so  munificent  a  donation ;  and  it 
is  but  light  to  add  that  the  great  landed  proprietors,  whose  estates  lie  in 
the  neighborhood,  seem  to  be  equally  alive  with  the  government  to  the 


1869 1  TBS  TSHITANTBPEO   ROUTS.  141 

important  benefits  wliich  are  to  accrue  to  tbem  from  the  construction  of 
tho  road,  and  manifest  a  disposition  to  extend  ihe  utmost  liberality  to  its 
Dianaorers.  The  importance  of  this  fact  will  be  appreciated  when  it  is 
coDsidered  bow  largely  these  men,  who  are  in  iLeir  way  very  much  like 
feudRl  lords,  can  infiuence  the  supply  of  labor  and  assist  in  providing  the 
many  requirements  of  the  employes  of  the  Company.  In  speaking  of 
the  immediate  resources  of  the  Tehnan tepee  region,  the  mines  may  be 
for  the  present  left  out  of  the  account,  though  no  doubt  exists  of  the  auri- 
ferous wealth  of  this  portion  of  the  Isthmus;  but  mention  may  be  made 
of  tbe  fact  that  unsurpassed  facilities  exist  for  the  manufacture  of  salt  and 
lime — the  former  of  which  already  engages  the  attention  of  a  portion  of 
the  present  inhabitants. 

Although  lying  within  the  limits  of  the  equatorial  belt,  the  climate  of 
tho  Isthmus  is  agreeable  and  salubrioup.  The  country  is  well  drained  and 
dry,  with  an  abundance  of  swift  flowing  streamn,  and,  being  for  the  most 
part  an  elevated  plateau  or  table  land,  is  traversed  by  constant  winds 
sweeping  from  ocean  to  ocean.  It  is  said  that  the  surveying  expeditions 
of  this  and  other  enterprises  on  this  line,  though  very  much  exposed  and 
compelled  to  sleep  for  the  most  part  in  the  open  air,  reported  fewer  cases 
of  sickness  than  would  have  been  deemed  inevitable  in  an^  similar  cir« 
camstances  in  any  of  the  States  of  this  country.  It  will  therefore  be  seen 
that  the  climate  of  this  portion  of  tbe  Isthmus  presents  no  obstacles  in 
the  way  of  the  enterprise,  while  it  exhibits  many  advantages  over  that 
of  Panama. 

There  are  but  few  natural  obstacles  in  the  way  of  constructing  the  pro- 
posed road.  The  '*  mountainous  region "  occupies  a  strip  of  territory 
yf'iih  an  averaged  width  of  about  forty  miles,  in  the  centre  of  the  Isthmus, 
and  may  be  said  to  extend  from  tbe  Jal tepee  river,  on  the  north^  to  within 
twenty-five  miles  of  the  Pacific  coast.  Here,  in  the  elevated  ridges  and 
^^purs  of  the  Cordilleras,  are  the  only  important  obstacles  to  railway  con- 
struction; but  the  continuity  of  the  mountain  uhain  is  very  nearly  broken 
by  a  pass  which  lies  nearly  in  the  line  of  shortest  communication  between 
the  two  oceans.  It  is  as  if  nature  had  provident  iallj  cared  for  such  an 
exigency  as  the  present  proposed  route ;  for  the  depression  is  so  marked 
that  the  highest  grade  to  the  mile  at  any  part  of  tbe  line  is  but  little  more 
thAD  sixty  feet.  On  tbe  Pacific  side  the  gap  or  opening  is  narrow,  and 
the  descent  quite  rapid,  to  a  series  of  table  lands,  which  incline  slowly  to 
the  coast  at  about  fifteen  or  twenty  feet  to  tbe  mile.  The  surface  is 
remarkably  smooth  and  even,  and  their  gentle  slope  is  ad  mirably  adapted  to 
railroad  purposes.  Tbe  amount  of  tunneling  which  will  be  required,  even  in 
the  mountain  region,  u  comparatively  small,  and  none  of  the  rivers  present 
uQusual  difficulties  in  the  way  of  bridging.     The  summit  of  the  road  will 


142  TBI  TKHUAVTKPXO  ROlTn.  [^*^ 

be  only  793  feet  above  the  level  of  bigh  tide,  and  the  severest  grade  will 
be  fiiztj  feet  to  the  mile,  and  this  bat  for  some  twelve  or  fifteen  roilei^ 
while  for  the  rest  of  the  distance  the  average  grade  will  he  less  than 
twenty- five  feet  to  the  mile.    The  gauge  adopted  is  four  feet  eight  ssd  a 
half  inches,  that   having  been   found   by  experience   to  be  the  most 
economical  in  working  as  well  as  in  first  coat.     The  preliminary  carriage- 
road  will  have  the  same  general  location  as  the  railroad,  but  will  follow  a 
slightly  difierent  course,  making  its  total  length  20Q  miles.    It  is  to  hare 
a  carriage-way  fifteen  feet  wide,  and  the  tiraher  on  each  side  is  to  be 
cleared  to  the  width  of  fifty  feet.    Ten  suhstantinl  trnsa  bridges  will  be 
required  for  it,  beside  a  number  of  smaller  bridges  and  culverts.    Tbe 
cost  of  the  road  will  be  about  nine  millions,  according  to  the  estimates  of 
the  engineers  in  the  employ  of  the  company.    It  will  require  #160,000 
for  the  carriage-road  ;  the  grading,  bridging  and  preparation  of  the  road 
bed  for  the  railroad  will  Uke  #6,000,000;  the  saperstructure,  $1,500,000; 
the  equipment,  #400,000 ;    and  the  other  expenses— engineering,  survey- 
ing station  houses  and  similar  things — ^a  little    less   than   #1,000,000 
making  the  total  amount  of  capital  necessary  to  be  raised  #8,900,000,  or 
about  #55,000  per  mile  for  the  162  miles. 

Of  the  advantages  of  the  work  when  completed  it  is  almost  impossible 
to  speak  in  brief.  A  glance  at  the  map  of  Mexico  will  show  that  tiie 
geographical  position  of  Tehuantepec  will  secure  to  the  new  route  tie 
entire  west  coast  freightage,  including  the  almost  entirely,  as  yet,  uoJe- 
yeloped  commerce  of  the  rich  provinces  of  Western  Mexico,  and  tliat  of 
part  of  East  California,  Arizona,  New  Mexico,  Nevada,  etc,  which  caooot 
be  transported  overland  to  the  Atlantic  shores,  but  will  find  its  future 
way  to  the  sea  through  the  Colorado  river  and  the  Gulf  of  California;  ss 
well  as  the  already  established  trade  of  California,  Oregon  and  tie 
extreme  Northwest,  which  roust  eventually  seek  its  paasage  acriifs  the 
Pacific  on  the  line  of  the  North  Pacific  current.  This  includes  the  Jap- 
anese and  the  best  part  of  the  Chinese  freightage.  The  Australian  trade 
and  that  part  of  the  Chinese,  East  Indian  and  Island  oommeroe  which  ii 
compelled  to  take  advantage  of  the  South  Pacific  trade-winda  and  cm^ 
rents,  will  find  little  to  choose  between  Panama  and  Tehauntei^ec  if  it 
has  a  Euvopean  destination ;  but,  if  consigned  to  any  port  of  the  United 
States,  it  cannot  fail  to  find  a  marked  advantage  in  seeking  tbe  more 
northerly  transit,  especially  as  the  winter  passages,  even  of  the  present 
New  York  and  Panama  line  of  steamers,  are  frequently  made  to  tbe 
westward  of  the  Antilles.     As  Mr.  Stevens  says  in  the  volume  before  us: 

"  The  Tehuantepeo  route  is,  of  all  the  routes  proposed  from  tbe  AUaotie 
to  the  Pacific  Ocean,  the  true  American  route.  It  is  the  ronte  which  is 
entirely  commanded  by  our  possessions  on  the  Oulf  of  Mexico^  and  not 


1869 1  THK  FUBUO   DEBT    STATEMENT.  143 

domineered  over  by  any  BritiBh  possessions  whatever.  In  case  of  a  war 
vith  Great  Britain,  our  vessels  bound  to  Chagres  would  be  obliged  to  sail 
almost  within  gunshot  of  the  British  forts  at  Jamaica.  The  Mississippi 
rirer  being  the  great  artery  of  the  West,  and  the  Mississippi  VHlley 
destined  to  be  the  great  reservoir  of  the  population,  enterprise,  and 
nationality  of  the  United  States,  we  are  at  all  times  better  prepared  to 
defend  the  Isthmus  of  Tehuantepec  than  any  other  position  oa  this  side 
of  our  continent  south  of  New  Orleans." 

The  project  of  an  icter-oceanic  ship  canal  across  the  Isthmus  is  said 
toforno  a  part  of  the  plan  of  the  Company  proposing  to  build  the  rail- 
road and  carriage-way;  but  in  the  volume  before  us  Mr.  Stevens  expresses 
the  belief  that  such  a  work  will  not  be  undertaken  until  the  demands  of 
oar  commerce  renders  it  indispensibly  necessary.  Such  a  work,  it  is 
estimated,  would  cost  about  $325,000,000.  For  all  present  purposes, 
however,  the  railroad  will  serve,  as  its  carrying  capacity  will  be  found 
sosceptibie  of  almost  indefinite  expansion.  Still,  looking  to  that  far 
future  in  which  a  ship  canal  across  the  Isthmus  may  become  a  practicable 
enterprise  financiallyi  the  Isthmus  of  Tehuantepec  possesses  topographic.il 
features  which  will  certainly  attract  to  it  the  i n vestigating  eyes  of  scien tide 
explorers  for  the  most  available  route. 

Considered  simply  as  a  scheme  for  the  improvement  of  the  facilities  of 
intercourse  between  the  Atlantic  and  Pacific  coasts,  the  people  of  tlic> 
United  States  have  the  deepest  interest  in  the  completion  of  the  railroad, 
and  the  far-sighted  capitalists  under  whose  direction  the  plan  has  matured 
into  a  purpose  deserve  our  heartiest  sympathy  and  most  earnest  good 
wishes  for  the  success  of  their  enterprise. 


iL^*^^/>^M*^^  s^m\^a^^,^ 


THE  PDBIIC  DEBT  STATEMENT. 

The  July  schedule  of  the  public  debt,  which  appears  elsewhere, 
i^rnands  very  little  special  notice  except  as  it  shows  as  usual  a  reduction 
:^f  the  principal  of  the  debt.  The  receipts  from  internal  revenue  have  been 
$<(elled  of  late  by  the  payment  of  the  annual  taxes  which  are  very  wisely 
nade  due  in  the  summer,  in  order  that  the  currency  and  the  money 
Darket  may  be  less  perturbed  by  the  influx  of  so  large  an  aggregate  of 
greenbacks  into  the  Treasury.  The  income  tax  alone  will  amount  to 
K>n)e  40  millions,  and  if  the  payment  of  so  large  a  sum  within  a  few 
lavs  were  not  allotted  to  that  period  of  the  year  when  there  is  a  great 
tccumuJation  of  idle  currency  in  the  financial  centres,  our  clumsy  and 
nelastic  monetary  machinery  would  receive  a  succession  of  jerks  and 

6 


144  TBE   FUBUC   DEBT  BTATKMESf.  [Au^Uti^ 

spasms  which  roust  cause  no  small  trouble  in  the  money  market  tod  in 
the  movements  of  business.     It  was  on  this  account  that  the  time  of 
paying  the  income  tax  was  changed  a  couple  of  years  ago  from  September, 
when  business  is  brisk  and  greenbacks  cannot  be  spared^  to  Jnlj,  when 
business  is  dull  and  greenbacks  can  be  absorbed  into  the  Treasury  vitJi 
less  risk  from  the  temporary  depletion  of  the  channels  of  the  drcalstioc. 
Still  this  year  is  exceptional,  and  in  consequence  of  the  fsTerish  and  sensi- 
tive condition  to  which  the  money  market  has  been  reduced  by  the  spasms 
and  unprecedented  strain  of  the  past  six  months,  the  locking  upof  so  large 
an  amount  of  currency  as  is   usual  would  have  been  attended  with  peril. 
Accordingly  the  special  case  had  to  be  met  by  a  special  remedy,  and  Mr. 
Boutwell  hit  upon  the  expedient  of  buying  up  the  bonds  of  thegoTeri- 
ment    In  payment  for  these  bonds  he  has  poured  out  the  currency  from 
the  Treasury  vaults  as  fast  as  it  accumulated   there,  and   when   Congres 
meets   he  will  seek  instructions   as  to  what  is   to  be  done  with  the  40 
millions  or  more  of  Five-Twenties  in  which  the  surplus  revenues  have  been 
thus  invested.    It  is  perhaps  premature  for  us  to  discuss  now  the  probable 
action  of  Congress.     But  various  opinions  are  held  in  Wall  street  as  to 
what  should  be  done,  and  a  lively  contest  of  opinion  will  doubtless  be 
provoked.     There    are   indeed    some  parsons  who    contend  that  lb« 
Secretary  has  exc  eded  his  legal  powers  in  making  these  purchases.    AVt 
apprehend  however  that  it  will  not  be  difficult  to  find  Hw  for  everything 
that  has  been  done,  and   Mr.   Boutwell   is   too  shrewd   and   has  too 
enlightened  advisers  to  be  caught  tripping.    Moreover  the  necessity  of  the 
case  justified  some  exceptional  treatment,  and  the  success  of  Mr.  Boutw€l^^ 
policy  is  a  strong  ground  of  defence.     It  has  been  urged  that  the  Tr&isurt 
purchases  of  bonds  have  caused  a  speculative  advance  in  their  price.    A:): 
no  doubt  a  part  of  the  rapid   rise  in    the   market  value   of  goveniiie^: 
securities  is  due  to  this  cause.     But   perhaps   too   much   influence  i^ 
attributed  thereto,   and  before  Cjiigress   mei:ts  we  shall   have  a.u  o^^w:- 
tunity  of  testing  this  point  by  the  pertinacity  with  which  the  advance!; 
sustained. 

In  presence  of  this  gratifying  appreciation  of  our  National  secari::-^ 
which  are  nominally  worth  to-day  250  millions  more  thau  at  the  beginDirg 
of  the  year,  t*>ere  has  been  a  great  deal  said  about  the  reduction  of  th:: 
rats  of  interest.  It  has  been  even  afllirmed  that  some  Frankfort  capitalisi>« 
have  offered  to  negotiate  a  loan  at  five  per  cent  for  300  millions  of  dollars. 
Of  course  this  is  mere  sensational  gossip,  for  at  Frankfort  to-day  oor  fii 
per  cent  bonds  are  offered  at  eleven  or  twelve  per  cent  below  par.  I;  i^ 
therefore  absurd  to  say  that  while  they  can  buy  our  six  per  cents  at  80  or 
less,  they  will  give  us  100  for  our  five  per  cent«,  or  even  for  our  four  aoi  i 
balf  per  cents.     Our  bonds  certainly  bear  t9o   high  a  rate  of  interesi. 


1869]  TtIB   PCBLIO  DEBT  BTATEUENT.  145 

^Ve  ought  to  be  able  to  reduce  that  rate  and  thus  to  relieve  ourselves  of 

purt  of  th«  pressure  of  the  hordes  of  laxxtioii.  But  it  inaj  well  be  doubted 

nbelher  tbis  reduction  and  this  relief  are  to  be  secured  by  any  large  Iord 

nejoLtflted  in  Europe,    However  thii  may  be,  (he  question  of  lowering 

tlie  rate  of  interest  is   assuming  more  and    more  importance,  and    the 

pressure    wbich    will  be  exerted   in   Congress    for  relief  from  internal 

taxation  will  render  it  a  necessitj    that  some  change  should  be  made.     It 

Villi  be  r«ineml<ered  thftt  our  debt  was  funded  io  Five-Twenties  with  the 

special  purpose  of  securing  its  controllability,  so  thnt  at   any    lime   after 

the  year   1867  there  miglit  he  an  adequate  proportion  of  the  public  debt 

ivliich  was  subject  to  he  paid  oS'  at  par.     By  this  expedient  ne  expected 

to  liave  the  option  of  using  our  surplus  in  paying  off  our  debt  by  degrees 

nilbout  being  required  to  pay  a  pmmium  as  we  had  to  do  wlien  n'e  paid 

lilT  our  debt   more  than  a  quarter  of  a  century  ago ;    and  secondly  we 

«\pected  to  take  advantage  of    the  improving  credit  of  tie  country  and 

pay  off  old  loana  with  the  proceeds   of  new  loans  obtained  at  lower  rates 

"f  interest     These  objects  go  far  have  not  been  secured.    Tiie  agitation 

of  repudiation,  with  other   causes  Lave  been  adverse  to  the  public  credit, 

and  instead  of  lessening  since  the  war  we  have  been  rapidly  increasing 

ti,:it  burden.     To   illustrate  this  point  ne  have  completed  the  following 

:aMc  showing  the  various  rates  of  interest  which  we  paid  on  our  debt,  and 

:lie  proportion  of  the  principal    whioh  stood  at  each  rate  in  each  year 

Hiice  I860: 

J'i'7    . Coln"lntw-Bt. ■   , Cnnancy Inlereet. ■         No         MiMelltt- 

irAj;.  n  p.  cent.      G  p.  cent.        T.K)p.c.         Up,ci«t.     3  p.  cent.       iDtereet.         neoiiF. 

'■•"...  »»i,6i3.u!«  is.wi.ooo  ( I S ».... $la,7!i^^ili 

-•''....       411.041,M»      l»i.4SS,linO      , ; pmsn-,^      Ks.^m'iia 

'.  !...   iDo,TBi.6i*    so.**!,!"*    iss,5w,s50     ii         00  luwirae 

'-"':...  Hii,ifTi,»iS    30,J8v>oo    mi.9;(i.ouo 41         .4s  syt.Me.ssa 

11...    E6I,<1S,I1S    ll)»Mf,1W     lUU.IOClM       IS.OOO.ttiQ      4;  .IH    IH^t^.-lM 

:-■>:...   »is.a70.un  iw.'XK.ioo    ssoouo.ooo    si^ais.t-m     4  m  947,S04,tQG 

■•■!.. ,1,I>*4,3-.7.SU  Hi8,Ml,lU0  Ti8,9.Mn  lia.UM.l*')   <■  IT  1OTS&0SO 

'■  'T...],«III,4TG,S1«  l»l.iau»n  411,333,411  133.731,4:10      4  ^1  I5.C3iKIS 

^  <-     1*8^,163,4(10  WlAM.fUO  M,8l4.8il0  fl3.(l(l(l,n<»  4  m  HLWUBlm 

b.'.  .  t,KG,341,30U  331,S3U.3U0  GS,(>^,BJD  <MI,1^,U0J  4:  ,01  G,U71,HM 

Included  in  the  above  currency  six  per  cents  are  rwlroad  bonds,  and  in 
ibe  "no  interest"  column  gold   certificates  to   Uie   following  amounts, 
I'r.Jer  the  head  miscellaneous  we  have  grouped  together  treasury  notes, 
t'-'iiiporary  loans  and  over  due  securities, 
,^  It.It.Boadi.     Gold  Cettlflctbs. 

1-  "■ .!!!."" '!!"^J"^!!'I"".'.'."^'".V.',',".!.'"!!i !!!'!!!'!"!    Y,M5.nn6  

!  "• B.oii.oDo  Kio^isb 

J- 1S.40(.<U0  ]H.4BT,»U0 

'    "■ ~ 31.310,003  aj,41i,oui; 

'■■"     B8,oja,3aj  ao.4w,Bio 

I  The  chief  object  of  this  table  is  to  aho*  that,  so  Car  as  regards  the 
fr-ssure  of  the  interest,  we  have  bai  no  relief  since  the  war,  no  change 
I  from  a  higher  to  a  lower  rata  ot  interest.    It   is   true  our  bonds  have 


146  RAILROAD  mils.  l^«^ 

risen  io  market  Yalue.  Five-twenties  are  now  worth  in  Frankfort  or  in 
London  twice  as  much  as  the  quoted  rates  of  the  period  ofgreaiestckprt*- 
sion  during  the  war.  But  the  ^hole  of  the  gain  arising  out  of  tbb 
improved  credit  has  gone  into  the  pockets  of  the  speculators,  tlie  hiokvn 
and  their  customers ;  while  very  little,  if  any,  of  the  gnin  has  iioerue4i  to 
the  National  Treasury  or  has  heen  available  for  the  lowering  of  taution 
and  the  relief  of  the  burdens  of  the  people.  In  the  pressure  of  bard  tima 
and  heavy  taxes,  it  is  the  contemplation  of  such  facts  as  these  which  bss 
produced  the  outcry  for  a  lower  rate  of  interest  on  the  debt — a  demand 
which,  in  some  way  or  other,  will  have  to  be  satisfied. 

RAILROAD  ITEMS. 

Cbioago,  Bubuvgton  and  Qni!(OT  Railroad. — The  Aonnal  Report  for  tbt  j<ir 
enaiog  April  80,  1869,  ebows  tbe  following  : 
The  grora  earnings  of  the  railroad  for  the  year  have  been  as  follows : 

From  Pa«!<enger8 $U669La08  61 

Freight    4,':s^864  S9 

Miscellaneoas aM,69B  »*|8i«nt^l« 

Int«reflt  and  exchange Si,7€> 

Total t6,S4i^^» 

The  operattng  expenses  of  all  kluds,  iDclnd'Og  taxes,  both  8ta  •  and  IVational, 
and  rent  of  uacks,  and  ccstottransf^jn  have  oeen $l.6fi=:.63t4 


Leaving  applicable  for  fnierett  and  dlTldends  during  the  year f3,17t,s«<3  .t 

The  baUnc^  to  credit  of  Income  account  at  the  dose  of  lact  yt$r  was 49Ui«^  H 

Total .•* «a,«t,8;so 

There  have  been  paid  dnrtog  the  year— 

Intvetton  bonds tSSBJMT  44 

DlTideod  No.  16 69T,iaS  00 

giiyidend  No.  n 6T7,166  00 
to  k  dividend 1,954,810  00 

Tax  on  divi'teods iaO,OBS  SO 

IM  bonds  for  linking  ftind 161,100  00 

|aiO,4»'!> 

Irving  a  balance  to  credit  of  income  account  at  the  e^ose  of  the  year  of MIQ.:S2  n 

Kxclosive  ol  amount  paid  into  siLking  fund,  wh  ch  at  tuis  tive  is ].09».7bi :: 

If  the  amo  nntpatd  into  this  toad  be  a  proper  credit  to  income  accomnt,  that 
account  stands  at $l,89t,<kI3y 

The  gross  eamiogs  of  tbe  road  have  been  in  excesi  of  tbe  previocia  year  br 
1658,161  98,  Dotwitbetaoding  tbe  somewhat  diminished  rates  of  fare  and  frv^igbt. 

After  referring  to  the  various  improvements,  and  new  coonectiocs  made  nee*  jmit 
by  tbe  rapid  progress  of  railroads  and  civilization  in  tbe  West,  the  Preaideat  rrmsrb  • 
"  To  provide  the  requisite  means  fortheiie  purposes,  they  propoee  to  dist  ibote  tiott 
among  tbe  stockholders,  at  its  par  value,  to  the  extent  of  twenty  percent  of  ihecapul 
atock  of  the  compaoy,  as  being  at  once  tbe  easiest  and,  to  them,  moat  agTt(»ble 
mode  of  raising  the  money." 

The  treasorer's  report  shows  the  following : 

GKJTXaAL  Aecx>0nT»DEnT. 

Capital  stock ^ tnjBmjl»t» 

Fundeddtbt 4jm^(» 

Dae  on  mo'tgage  of  Northern  dross  Bailroid ^^^  nfijuti^ 

Oper'«tlng  accounts  unpaid «*^ ^^ 9N^««*( 

Dae  Ohainnan  of  doard  for  advances I,9IMn» 

Sinking  ftind l^'O  13 

Baliince  to  credit  of  income  account .»« 8BMSI9 


1869] 


&AILROAD  rrsMS.  H7 


OBIDIT. 

Co«t  of  ccitrttction  before  May,  1868 $14,M7,844  47 

('  >ot  of  eqaipment  before  may,  18o8 3,205  407  69 

rJaeonN».rrreraCro«BRall'oad 270,om)  OO 

('  <?t  <>•  new  con«>tractloo  dario^ the  year lfV87,U)5  fX) 

v«^' of  eqaipmeDtarmns^  taey  ar tt4l,8il  73 

-M  itt  rill  on  hand  for  fQ)  are  operatioDS 4'^0,U'2a  07 

I'u  Inn n  talace  tar rompany stock 6«.2«M)  00 

S!  am  Perry,  Preeideoi  and  other  boats , 41,0^4  (it 

Kurlinirton  di'pot,  ground   and  m cere  ions 81?».94fi  48 

rii  ra/ti  tC3m«  for  trHnsferrlne  'relght 4.500  00 

M  !  tnir  traffic  accounts  and  bills  rwceivable ...►•^ 257,  u>s  4S 

r.  sMjmce  I  eoartment 8,?»aj  40 

I  arlint'ton  and  Mis«oa  I  River  Railroad  pref.  f  tock,  7  inetalm^B 412,73'^  ti4 

K-;  kuk  &  St.  Paul  Railroad  Company »...  $500,401  68 

Lesit  amottnt  received  on  bonds 413,781  00 

86»620  6f 

Anercan  Central  Railroad  constraction  account ••• $936,032  f^ 

hi  crojit  on  bonds ll.Kaa  79 


$a87,8rt«i  t« 
L*»s  received  on  sale  of  bonds 639,158  13 


$i<8,70a  S5 

Duo  from  agents  and  connectiniT  mads 115.«8^  97 

Deposit  in  New  York  and  treasury 81,831  73 

Total ^^ $21,999,184  80 

SINKING  rUNO. 


rliri^toaa  Quiocy  ronv  rtible  8  percent  bonds;  $)61,00()  Ghicai^o,  Bur- 
i...x>^ii  »  Quiocy  trast  mcrtsc^ge  7  per  cent  bonds,  and  $129,00  >  Gbicatro,  Burling. 
ton  <b  Qoiocy  trust  mortgage  8  per  cent  bonds;  a  totcl  of  $991,00  ,  {.aichased  at  a 
coat  of  $l»035.76l   13. 

ExpoETS  OF  Iron  Rails  from  Grkat  Britain. — Mesfirs.  8.  "W.  Hopkins  &  Co., 
Rai  r>«d  Iron  and  Steel  Rail  Merchants,  Noe.  69  and  71  Broadw»y,  N.  Y.,  and  68 
Oli  Bmad  street,  London,  furoUh  tbe  following  official  statement  of  the  export  of 
iron  faUs  from  Great  Britain  : 

Fits  Months  Ending  Mat  81st  : 

1867.  1868.  18691 

AMBRICA.                                           To '8.  Tods.  Ions. 

rM»e<!SUtea 87.299  112,tt(J>.  141,ttS4 

Jriii^h a,8l:i  6,' 16  12,»9a 

C'-')i 937  1,6.2  819 

i-rrzil 773  l,'<i0  513 

<biii «,«40  404  1,«70 

t^'fa 163  770  9,306 

BUROPB. 

Rri-Ria 17,863  18,980  62,'<14 

^wolen 860  413  2.890 

>?J-'ia 4,3il  8,611  2,738 

I  ^'iii.  CrottaandDalmatla 8,8  0  12,975 

>rine 58  44  8,770 

Uland «,'.96  14,661  4,880 

:ip<iuaud  Canaries 4,328  8,717  M78 

A^IA. 

B-t'-*  India 45,151  42,S18  80132 

Australia ti,o27  4,bfe8  9,9C1 

AFRICA. 

^■^'^pt 8,541  10,612  8,711 

t'Utr  countries Il,0i7  14,3^2  26,f>0J 

T-tal 199.287  233,769  820,»75 

—The  f  illowing  is  a  statement  of  the  amount  of  interest  due  Yirginia  by  tbe  varioui 
r&ilrr  a  i  corporations : 

''^nznA  ^l.'xa  drit $17.500  00 

J- chm  ind  A  DHnvilie 4v,000  00 

>.r.:    tt  (jtfi  tral ft   60<)  00 

;:-ih'iac 252,uh)  oo 

•  1  '  nil  ^b  Tennepsec 42<' OOiJ  00 

>  nolle  A  1  elensbu  g       45,&'>    13 

ToUl $b43,a56  18 


148  BAILBOAD   ITEMS.  [^*9^U 

Ganadiam  Railway  Rkturks.— The  earoinga  of  the  railwaya  of  OaMik  for  tha 
moDth  of  May,  1868  aod  ib69,  were  aa  followa : 

isns.  rtm. 

OrcatWfPtern f«4,«R8  $ieQ,9tt 

Or  nd     ruiik '295,917  6il>*H 

Londonand  Port  Stanley 8,871  M« 

Wellsul  9^1  MM 

Nor  hem 81,»J«  'U.«Tt 

Brockviileand  Ott«w% W,«M  1*.5» 

St   I  a  wren  e  and  Ottawa 14,688  W.aSI 

St.  Lawrence  and  iQ'Jiietrr 9S$  l.nJ7 

New  Uruntwlck  and  Canada ...  12,811  11.*^ 

Knroi  ean  and  North  American 17,IW  lU4ft 

—The  acDoal  statement  of  the  Michigan  Ceotral  Railroad  for  tha  yearcDdicg 
May  81, 1869,  abows  the  following  resulta': 

xABBiNaa. 

From  pas  enzera |1,79S,8C6  11 

From  freLht a,T56,  00  48 

From  miaielloni^oaB 165,296  80 

$4,71«.«a 

TheordloarTPxpeoses  of  ope-ating,  Inc'nding  local  taxation  and 

tuxes  ou  divideud,  bave  teen $2,008*278  72 

Paid  In  o  slnklnir  lULd 84,5tO  03 

Leaving  for  Intercpt  arddiyidends l,66a,*»'j 

Interest und eAChani;e  paid ti&ITV^' 

LeaTing,  aboyeall  expeneee,  net $l,01'i.Stip4 

The  proper  oet  eamioga  above  tboae  of  the  laatyearba?e  beeo  $115,S3&,iDi 
the  excesa  of  groea  Aarnioga.  $246,000.  The  amouot  of  the  aioking  fond  from  the 
current  earninpa  is  now  $l,'c 51,699  86.    There  ia  outstanding  no  floating  debt 

The  fnndcddeVt now  stands  at. - $515S,i^g 

Lea  tmouHt  paid  into  sinkingftmd l^l^^ 

Le-«vlnif  then n  horded  deb* at t8,aM.^«M 

Thecapl  al stock  amounts  to 114S^tSteUj 

Bonded  debt  and  stock  to $14,W3,»:M 

llie  bon  'e  1  debt  has  been  decreaaed  during  the  year  by  conTO'-aioo  of  booths  iota 
stock  by  the  amount  of  $1,815,600,  and  the  atock  of  the  Couipaoy  has  been  cone?- 
pondingly  incresaed,  and  baa  aUo  been  farther  enlarged  by  a  atuck  divideod  dunog 
the  year  of  ten  per  cent,  amoontiog  to  $904,400. 

— The  Burlington  Hawheye  gives  as  followa  the  grow  eamines  of  milroada  of  I'tn 
for  the  year  1868,  oa  gathered  from  books  in  the  State  Treaaurer's  office : 

Kal'r'>a<ls.  Gross  Eanittrs 

Chlc»»fir'i&N"rhwpstom $3.3Tl«tt*^ 

Dubuqne  &  Si(M»x  I'liy irw»Mjii 

Dub  qni-  &  ^-outh  west  era , i;i4;7n 

CedarFalleiAMl  iv  acU 5o,^ - 

Slonx  CHy  A  Prtcltlc ITUOOi 

De-  Moines  Va  cy 7IH.S4mW 

Chlcae  ,    ock  I -Ian  •&  Pacific 1,<51.*:^^| 

Burlln^tun  &Mt-rturl 641.W2  ** 

Con- cil  hinffs  «    t  Jo  .     ...  ISS,*^'^* 

McGrei'or  Gr  at  Wttrtem 4:«vJj   » 

Keokut'A'^t    Paul     "l-*'^- 

•Uu'i.ADbnqu    RrldgeCo 2.':>.« 

tDubnque  Street  R  tlroAd K:jJ> 

Total $8.1'  ».»•  « 

RAiLaoADS  IN  Geoboia. — Railroad  enteipri«»e  U  p-ctive  in  0-»or<ia.  The  ro\d  fr-^'a 
Miliedfcfeville  to  Macon,  com pUtiug  tl  «  Augusta  and  Macon  Riilrroid,  will  h^  huit 
imm«>diAtel%.  ArrangenieMa  have  al-o  teen  made  to  buiM  the  road  fr^n  Aosfo*** 
to  P.rt  Royal  8.  C.    The  Georgia  Railroad  Company  have  ag  eed  to  indocs-  Xl* 


♦  Tn  ope.  a' ton  but  a  few  days 

t  In  Operation  bat  a  portlo   of  the  year. 


18G9] 


RAILROAD  ITSlia.  149 


biinds  of  the  road«  The  aarvej  of  the  long- talked  of  Northeastern  Railroad,  frota 
Athens  to  Clay  too,  in  Ray  bun  county,  coonectioGr  with  the  Tennessee  roads,  and 
c.rtkin?  a  continuoos  railroad  from  Aogasta  io  Koozville,  has  been  ordere  1  by  the 
Georgi'i  Rai^roa^.  The  Macon  ani  Brunswick  Railroad  will  be  soon  completed,  and 
tii^  ext--n9ioD  of  the  South  western  Rtiilroid  to  the  Florida  line  is  also  under  way. 
Tht>  fend  between  the  An<;u6ta  and  Columbia  and  the  South  Carolina  Railroad  has 
Heto  settled,  and  the  trains  of  both  companies  now  come  and  go  botwiieo  Oolum- 
ba.  Oh  irleetn  and  Ausfusta. 

Neiijrtifttions  have  been  in  progress  for  some  time  for  the  purchase  of  the  South- 
^e-t«rn  Railroad  and  branrh»*8  by  the  General  Railroa  1  and  Banking  Company  of 
(ie  tr^ia.  The  Savannah  Republican  says  that  the  bargain  and  transfer  have  been 
p^^rfectpd,  the  entire  interests  of  the  Southrvestem  road  having  passed  into  the 
po««*»**irtn  of  the  Central  Company  on  the  24th  ult 

The  Frederick  and  Pennsylvania  line  Rdlroad  Company  has  issued  |2\000  worth 
cf  coupon  corporati  n  bonds  in  sums  of  |200  1500  and  $1000,  bearing  interest  at 
{'le  r.te  of  6  p  f  cent  per  annum  in  currency,  payable  on  the  1st  of  June  and 
Dtrember.  The  company  has  endorped  these  bonds  with  a  gold  bearing  interest— 
or  its  equivalent — of  6  per  cent,  and  they  are  exempt  from  corporation  and  county 
tax. 

Katlroads  in  Minuksota. — A  letter  in  the  Chicago  Tribune  gives  some  inter- 
t^^tin;^  i*  formation  about  railroads  in  Minnesota.  At  the  present  time  nearly  four 
thousand  Ub  irerj  are  at  work  on  th^  railroads  in  that  State.  One  thousand  men 
hive  jiiHt  been  taken  by  propeller  from  the  lower  lakes  and  transferred  to  the 
r.ilroad  now  building  from  the  hoid  of  Lake  Superior  to  the  Mississippi  River  at  St. 
Panl. 

On  the  Ht.  Paul  and  Pacific  Railroad,  ninety  miles  west  of  Minneapolis  are  under 
COQ tract.  The  laborers  come  from  Sweden  and  Germany.  Accents  of  the  Cjm- 
pmy  ha'-e  circulated  in  those  countries  of  Europe  desciiptions  of  the  choice  lands 
in  the  Bi^  Woods  and  the  Kandiyohi  prairies  beyond  that  btilt  of  forest;  by 
eitLiiar  personal  influence,  parties  of  omigran  s  have  been  billited  from  their 
na^iv3  villages  to  tne  particular  fraction  of  land  de<9tined  to  be  a  Minnesota 
liofuestead  ;  and  the  protection. of  the  C>>mpany  is  not  with  irawn  for  a  moment  of 
ihe  Icng  journey.  Even  after  arrival  in  Minnesota  the  Company's  buildiug^  are 
arranged  for  their  tempora'-y  occupation,  while  more  permanent  shelter  is  provided 
in  the  immediate  section  of  the  roa  i  under  construction  and  of  the  lands  to  be  occu* 
pi*-H. 

They  expect  io  Iowa  that  every  tier  of  country  East  and  West  will  have  its 
lir.e  of  rail.  Minnesota  begins  to  show  the  same  sort  of  Enterprise.  There  arA 
railroi  is  in  the  two  lower  tiers  of  countied ;  another  in  the  fjurth  tier,  and 
arKtlier  in  the  fifth.  The  North  Pacific  and  St.  Cloud  and  Pembina  Rulroads  will 
'•pen  other  and  large  i^ortions  of  the  State,  and  of  the  region  beyond.  Of  the  lines 
ia  projrress  or  prrj»'cted,  one  is  from  St.  Paul  via  Si  ux  »  ity  to  the  Union  Pacific 
H  ilroad,  west  of  Omaha.  As  to  the  North  Pacific  Road«  thti  correspondent  sutri^ests 
niut  an  eli:;ible  route  would  be  on  latitude  43  decrees,  crossing  the  Mis'jouri 
Hiver  nesr  the  northern  boundary  of  the  Sherman- Harney  Sioux  Re!»erv>»t  on.  cr  ss 
iri>  the  TellowsU'Ue  at  the  mouth  of  the  Bit?  Horn,  and  thence  west  near  Helena, 
in  Montnna,  and  through  the  Hell  Gate  Pass  to  the  Rocky  Mountains  to  the  channel 
of  the  Cdumbia  Kiver. 

**  Joist  CoirPAMiBs**  or  Nrw  Jbssit. — With  the  view  to  procure  funds  for  the 
improvement  of  the  canal  and  railroads  of  the  united  companies,  the  stockholders  of 
the  N-w  Jersey  Railroad  and  Trans portnt ion  Company,  the  Delaware  and  R^iritaa 
CiLa)  Comp<ny,  the  C<mden  and  Amboy  Railroad  and  Transportation  Company,  and 
the  Philadelnhia  and  Trenton  Railroad  Company,  are  entitled  to  subi>cribe  at  par 
fo- 15  [.er  ee  t  of  the  amount  of  stock  which  shall  stand  in  their  namt^s  on  the  hooks 
cf  the  eai  1  companies,  collectivily,  on  the  I  th  day  of  July  n<xt,  at  the  comm»-nce- 
w«?i.ttf  the  "J^y  ;  the  ftock  thus  cnbacribed  for  to  be  stock  of  tie  said  three  first- 
omed  coit-panies,  and  to  be  contributed  by  them  in  prup-)rtion  to  the  present  amount 
oC  Cupital  9t  (k  of  each  company;  and  each  stockholder  entitled  to  a  fractional  part 
of  a  »hare  shall  be  all'^wed  to  eul^crlbe  theref-  r  a  full  (hare  ;  but  no  fractional  sub- 
scripiiun  re:eived.    The  subscriptions  will  close  August  lOtb.     Every  stockhvlder 


150  RAILROAD  rrsufl.  I^iv^il, 

holding  lesi  than  leTen  ttharea  will  be  €Dtit1e(i  to  anbecribe  for  one  elrare.  TV 
instaUments  on  account  of  the  new  atock  »ball  be  paid  in  caab,  to  two  itatatawoti 
of  60  per  cent  each,  aa  follows  :  Firat — Fifty  dollar*  a  ahare  at  the  time  of  aabicrip- 
tion — between  the  22d  day  rf  July  and  the  10th  day  of  Angmt,  I86d.  Seeood-- 
Fifty  dollara  a  ahare  between  the  22d  day  of  Jannary  and  the  10th  day  of  Feb> 
ruary,  1870.  StockhoIHera  foiling  to  sabacribe  within  the  time  mentiooei.  or  Def- 
lecting to  pay  tie  inatalmenta  when  due,  will  forfeit  their  right  to  the  new  atock. 

RurrAKD  RAiLtoAD. — The  deciaion  of  the  Court  at  Yergennea,  Yt,  oo  the  petitin 
of  the  Rutland  Railroad  Tompany  for  poeaeaatOD  of  the  road,  which  waa  op p>vcd  br 
Bome  of  the  firat  mortgafre  bondholdera  of  the  old  Rutland  and  BarlJn?ton,  kuiTct  Uv 
matter  aa  before  the  petition  waa  nnade,  the  property  btiog  atill  in  the  bonds  of  the 
trnateea  of  the  eecond  mortgage  bonda.  Nearly  all  the  aecond  mortgage  bnod*  ban 
been  converted  ipto  eonnmon  atock  of  the  Rutland  company,  and  orer  $!,0O',0C'O 
of  the  $1,800,000  firat  mortgage  bonda  haye  been  oonverted  into  preferred  ttodL 
The  Rutland  >  nad  aak  for  poaaecaion,  aa  they  hold  that  they  can  manage  more  pr^ 
fi table  than  tbe  truateee,  by  iocreaeing  the  rolling  atock  an  i  doing  more  basiseak 
This  hae  beendenied  then,  and  the  eaae  remaina  in  the  Uwyera'  haoda,  and  iray  h$ 
th(-re  for  years  to  come.  In  most  casea  of  contenlion  for  rights  claimed  eqoit  ble  coo- 
prcmise  is  judicious,  and  we  do  not  believe  thia  an  exceptional  one.  Even  if  the  6nt 
mortgage  boodholdera  conld  eventually,  years  hence  per bape.  obtain  every  dollar  of 
pnncip<»l  and  all  back  irtereet,  a  fair  settlement  now  woald  undonbtedly  result  men 
to  their  benefit  than  a  long  legal  controvcay,  with  ita  attendant  ooata  and  tronUef. 
The  experience  of  other  roada  would  certainly  confirm  thia  view  of  the  matter.-* 
Boston  Jourtial, 

The  SuBSTiTUTioif  of  TaN-FoaTisa  roa  Frvs-Twairnaa  ab  NAnovAi.  Bavk  Sia- 
aiTiES. — The  following  letter  has  been  addressed  by  the  Secretary  of  the  Treaiur 
to  the  Comptroll*-r  of  Currency,  July  2S  : 

Referring  to  my  letter  of  May  14th  ult ,  I  have  decided  to  permit  the  siiMitct)<« 
of  ten  forties  for  five  tweptiee  or  the  exchange  of  any  gold-bearing  bonds  now  heM 
as  security  for  circulating  notes  on  the  ta^is  hitherto  adopted;  the  tenf  rtiet  to 
be  received  at  ei.'hty  five  per  cent  of  their  par  value,  and  all  other  six  per  (e&t 
gold-bearin!(  bonda  at  ninety  per  cent  The  fix  per  cent  currency  bonds  isfoed  Vj 
the  United  States  to  the  Pacific  Railroad  will  not  be  received  as  aecority  ftw  tlifl 
circulation  of  National  banks ;  and  the  exchange  of  gold-bearing  bonds  is  sal j«et 
hereafter  to  revision  if  it  shall  be  found  that  audi  exchjngea  are  ao  frequent  at  to 
become  onerous  to  the  department  Gioaoa  ^.  Bodtwsll, 

Secretary  of  the  Treasniy. 

The  Comptroller  of  the  Currency  baa  given  notice  accordingly. 

pACino  RAiLaoAD  FaxiGHTs. — Under  the  tariff  for  through  freights  by  rsil  to  tte 
Pacific  a  car  load  weighing  18,000  pounda  is  tranaported  from  Chicago  to  Sarrameato 
for  $900.  This  la  a  charge  of  just  $5  per  hundred  for  transportation  a  distioee  of 
2,266  miles.  The  division  of  ratea  per  car  load  givea  the  road  to  Omaha,  iP 
mibp,  1110  ;  the  Union  Pacific  to  Promontory,  1,085  mi'es,  #386  ;  sod  theCcAtitl 
Pacific,  from  Promnptory  to  Sacrimento,  1405.  ^'o  the  Northweatern  or  the  Rock 
Island  receives  about  |22  45  per  car  load  per  hundred  milea,  the  Union  Pacific 
|85  60,  and  the  Central  Pacific  $68  70  per  car  lead  pe*"  hmdred  mile^  The  dif- 
tance  from  Chicago  to  New  York  is  just  about  two-fiflha  of  the  distance  from  Quago 
to  Sacramento. 

CoLoaADO  R.  R,  Irsxa. — The  Denver  Newt  says  that  "  a  very  large  prop^ifln  of 
the  goods  now  arriving  at  Denver  come  by  the  Kansas  Pacific  Road.  Lan?e  iarokf* 
of  groceriea  are  coming  in  from  Chicago  by  th^t  route,  all  inclnded  nnder  a  »r^ 
rate  of  freight,  and  without  daasification.  The  tariff  ia  aatooi^htngiy  low.  Xov 
let  St.  Louis  compete  with  Chicago  in  her  selling  pricea. 

Oil  CaEXK  ako  Allkghant  Rivxa  PaiLaoAD  Company. — ^Thie  Company  gires 
notice  that  the  Commissionera  of  its  Sinking  Fund  will  pnrchaae  for  iovestmnit, n 
and  after  AnguH  2d,  from  the  aeveral  atock  hlders  at  par,  five  per  cent  of  tfaact^iUl 
of  the  stock  h»  it  may  stand  on  the  tooks  of  the  Company  on  the  1st  of  JnU,  l&i^9. 
Those  who  elect  to  sell  that  amount  ( f  their  atock  at  par  for  CAsh.  mn»t  notify  lUbe 
Commia^ionera  of  tho  fact,  and  present  their  certificate^  before  the  2(Jth  of  July.  Tae 
tranafer  books  of  the  Company  are  to  be  removed  to  Pittaborg  aAer  the  let  proziiso. 


1S60]  RAILROAD   ITBMS.  15I 

-*The  Detroit  JVihune  commeoU  as  follows  on  the  vote  in  th%t  city  aj?aio8t  aid  to 
railro  da  :  "  As  we  iotimated  would  probably  be  the  case,  the  propositi  n  to  loan 
the  cred  t  of  t^ie  city  to  certain  railroad  companies  was  defeated  yesterday  by  a  large 
ninj  ^rity.  The  roajority  af^ainst  the  Detroit  A  Hillsdale  road  waa  8,874,  the  largest, 
anrJ  ac^aivt  the  Detroit  <fc  Howell  Roa  I  2,20f>,  the  emalles  .  The  total  vote  was 
r.o4  far  from  6,000.  Th?  vote  of  the  city  last  fall  was  about  12,000,  showing  that 
ii>e  vote  yesterday  was  ab3at  half  the  full  voto.  Little  interest  was  taken  in  the 
eif  ction.  Bat  the  adverse  majority  is  decisive  enough  to  show  that,  as  matters  now 
F(3n<l.  Detioit  will  not  help  build  railroadf>.  As  our  reader <  are  aware,  we  desired 
R  ill  IT  rent  result,  and  labored  for  it.  We  thiok  the  re«ult,  as  it  nnw  stands,  wdl 
I  e  unfavorable  to  oar  city.  The  roost  rotent  as^ency  against  voting  aid  was  the 
existing  railroad  corporations,  which  organized  the  opp')tiitioo,aDd  from  their  employes 
furoi&bed  a  oooaiderable  share  of  the  majority  aga'nat  it. ' 

—The  Portland,  Saco  and  P  rtsmouth  Railroad's  stockholders  at  their  meeting 
Iitfly  discussed  the  contract  between  this  road  and  the  Boston  and  Maine  and 
Ka'^tem  railroads.  The  latter  were  thereby  bound  to  p\y  their  rent  in  gold  and 
"liver  coin,  but  have  for  six  years  availed  themselves  of  the  Legal  Tender  act  to  pay 
in  greenbacks.  The  leescrs  think  that  ander  a  recent  decision  of  the  United  States 
Supreme  Court,  they  have  a  right  to  recover  back  rent  according  to  the  cc  n tract's 
tt-riLs.  which  would  amount  to|;l  94,658  io  gold,  or  $328,600  in  currency.  The  direc- 
t'^rs  were  accordingly  instructed  to  take  action  to  recover  for  the  past  and  enforoA 
tor  the  futare  according  to  those  terms. 

Tlie  N.  T.  2Vibun€  gives  the  following  items ; 

—The  Rarian  and  Delaware  Bay  Riilroad  will  be  sold  on  the  4th,  of  September 
&t  the  Manchester  Depot,  under  a  writ  of  fieri  facias  is^ue  J  by  the  Court  of  Chancery 
at  the  suit  ( f  Charles  J.  Hendrickson  and  Stewart  Brown,  complainants,  who  are 
L-'iders  of  mortgages.  The  eotire  property  of  the  Company,  inclu<Ung  the  nteamer 
Je<.»e  Hovt,  will  be  Fold,  and  the  branch  road  from  Manchester  to  Tom's  River 
v.iil  he  disposed  of,  subject  to  the  payment  of  the  principal  of  certain  bonds  secured 
by  mortgage  given  to  Jimes  W.  Alexander  Trustee. 

—The  line  of  the  Rockford,  Rock  Island  and  St.  Louis  Railroad  is  now  located  as 
Tir  as  Rhoad'a  Point,  in  Macxiupio  county.  From  that  place  different  routes  have 
hftn  surveyed,  with  St  Louis  as  the  objective  point.  One  route  proposed  lies 
tl)r<)u^h  Miles*  Station,  thence  to  the  Terra  Haute  Road  ;  another  through  Ship- 
I'idn  ;  another  through  Brighton  to  Bethalto  ;  anther  through  Brighton  and  Foster 
barj^  to  the  Junction  ;    and  lastly,  one  tbrou^rh  Upper  Alton  to  the  Jancticn. 

-^A  bill  has  pafsed  the  Senate  cf  Florida  in  aid  of  the  railroads  in  thit  State. 
It  is  proposed  ti  Utiue  bonds  to  the  r  mount  of  $14,000  a  mile,  to  aid  in  ex  ending 
the  Perisscola  and  Geortiiia  road  to  Mobile,  all  the  bonds  to  be  issued  at  the  same 
tii-.e.  The  second  proposition  is  for  the  State  to  endfrse  to  the  extent  of  *14,000 
a  Hiile  the  bond:*  of  any  company  undertaking  to  luild  a  roa<i  from  Gainsville  to 
'^si'upa.     The  indorsed  bonds  to  be  bsned  as  sections  of  five  miles  are  completu«i. 

A  meeting  was  held  at  Leavenworth  on  July  14th  to  organise  the  Lcave'> worth 
<in<i  Gulf  Railroad.  1  be  people  of  the  c  unties  interested  in  the  road  are  in  earnest, 
<^'(i  the  work  will  be  speedily  nndertiken  an  1  accomplished.  Many  leading 
<^i(itali6ts  are  among  the  incorporators,  and  the  scheme  is  one  that  will  command 
tlk«  ro.operatioQ  and  supp  rt  of  the  people  oi  a  large  and  important  section  of 
country, 

Th'^  net  profit  of  the  Great  Western  Rairway  Company  nf  Canada  for  the  three 
ni'imbs  ending  April  SO,  1869,  available  for  dividend  (after  deducting  iuterest 
^•ai»es  loss  by  exchange,  dice.) is  f  81,7 10  78,  against  $79,191  45  in  the  correspond- 
'Jb' period  of  1868. 

--The  Toledo,  Wabash  and  Western  Railroad  Company  has  adjusted,  its  legal  diffi- 
C'ltifs.and  all  the  suits  are  to  bn  withdrnwu.  The  company  is  nly  t:>  isue  $l,ii00,< 
*''"'  of  new  st<x;k,  instead  of  $<,000,000,  to  be  divided  equally  among  the  parties, 
'cpre  ented  by  Azariah  0-  ody  and  Jay  Gould.  The  ro^d  from  Akron  to  To!e  Io  is 
selected  to   be   built  within  eight  mjnlhs,  and  also  that  from  D.catar  to  St.  Louis. 


152 


PUBUO   DEBT   or  TRB  UNITED  STATES. 


[Augvly 


PUBLIC  DEBT  OF  TIE  UNITED  mTKS. 

STATEMENT  COMPARING  THE  BBTURNS  FOB  JULY  1  AND  AUGUST  1, 18SB. 


DEBT  BXABINe  COIH  IRTXBX8T. 


Character  cf  ittvet, 

68,  Bondsof  Jan  l,'B9(l?iyrf«) 

r**  "      Jan.l,»6l(lf)yr8) 

6b,  B'da  of  *61  (attor  Dec  8l,'80).  - 


6s, 

6fl, 

?' 

68, 
08, 
68, 
68, 
68, 

?• 

6b, 


(t 

i( 
II 
li 

kl 


(Oregon  war)*  81, 
of  rune:30/6l(iOyw).. 
Way  1,«\  (5-20' !«;  . 

Juutf'«8ryi)     

Mar.  I,'fi4(i0-40'8).. 
Nov.  1,  ♦6U5-aOV).. 
Julyl, '65(5-.K)*8)... 
Nov.  l,'6'i(V90'8)... 
Jalyl, 'e7(5a0'8)... 
Julyl, '«)8(5-aJ'B)... 


Jny  1. 

$90,0 10  OW 

7,0i«,001 

18,4lA,0iO 

{M5.000 

189,317,500 

Bl4.Tn,6«l0 

'    75  0  0.000 

19l,5fi7,W0 

IS'f  441.800 

83^99H.R50 

10%,:SS7,S50 

8:9,5^^,860 

41,689,300 


Anx  1, 

$9n,r!00,ono 
7,oa.ooo 

18,415.rO0 

V4V«0 

189,917  CO) 

614,771, «U0 

76,fl00,onO 
194,6'i7,a00 
1*1.  4S,^» 
83^9<8,950 
a0«,8  7,430 

n!l,)8a,4£0 

«i,669,6S0 


I     If 


••• • • • 


103 


000 


»••« • • 


DXXT  BBASnr«  LAWnrL  MONXT  IHTBBX8T. 


8e,  Certificates  (dnnand) $5  \l  -^,000    $50,810,000 

«»,  Navy  FeuBlon  Fund 14,aXl,000      14,000,000 

DEBT  OJX  WHICH  UfTIBBST  HAS  eiASBD   BOTOB  MJLTUBITT. 


$l,SC.O^ 


68,  Bonds  of  186t.  '67,  '68... 
6s,  Bonds  (tax  imtem.)  lf^64. 
Treasa  y  notes  prior  to  1857 
**  sJnce  1S57.. 
68,  Certiflcates  of  Indeht'ees 

68,  CompM  int,  notes  '67  &'«8 

Temporary  loan .. 

7-808, 8  year  notes  C^l  &  '69) 


•  »«•  •••■  •••«  «••• 


$103,000 

94«,flC0 

101.519 

879,151 

1-^000 

2.879,410 
1%,810 

1,116,500 


Mi,ono 

1*  9,615 
888  33i 

1S.000 

3,78^,910 

1M,110 

99a,C00 


DBBT  BBABIHO  KG  IXTSIUUT. 


Demand  notes $191,683 

U.  ».  Legal  Tender  notes 855,0SB,195 

PoBUl  &  fractional  currency a9,06a,0« 

Gold  CerUilcatea 30,489,610 


$116,719  

856,000,000  64,805 
31,0:«,3O 

86,7i&,840  $6,886,900 


$«.3» 
10,939 

ieB.(a> 


$4,rj 

l.(Bl.T» 


BXCAPXTXTUkTlOX. 


Debt  bearing  coin  Interest $9,107,f>80,600  $8,107,031  80O  $100 

'     b'rinir  lawful  money  lot 6«,19ii.000        64,810,0('0  

onwhichit  h  sCeaa'd 6,011,884         4,7TO,i»?7  

bearing  no  interest 418,608,501      423.879,858  6,264,858 


k» 

«t 
I. 


Apin"<*pat '  principal  debt $2,5»7,730,1»5  $2,601,401,- 16  $3,678,281 

Col .  luensiaccraed 45,97H,«ao        31,60.0  9  

Lawful  money  int.  accraed l,3sa,7J»          l,*-7,^00  ...  . 

Int.  accrued  on  matured  debt 690,680  660,781  


Agg  epate  dvbt  &  int.  a  c.  u*d $2,64&,1T8,295$2,C35,188,788 

Deduct  amooDt  id  Treasary; 

Coin  belontng  to  Government $79,718,678 

Coin  fo  wliicii  tertiflcAtes  are  cntstaDdiUK. . .  8'-.48»/i40 

Curre.cy Ij7,097,8l9 

8iiik*i  fund  in  coin,  b'ds  A  int 8,867,282 

Oibur  U.  S.  coin  in  .  bds.  purch  sed  &  accrued 
iiiti  rest  thereon    


115«t»''. 

I'rs.iS" 
loSbtf 


$6''.,40'5,77l 
36,725,»I0 
83,4  l,(i54 
11,958,147 


6.836,200 
8,064^885 
1S,110,£90    15,1:0,590 


$i5.so:.5rf 
i8Tiiii*5 


Totalcoln&cnr'yinTreas'y $166,169,414    $153,666,003       $. 

Debt  less  coin  and  currency $2, 489,00  U^^  $2,481,566,737 


$i,6l2,<tt 
$n,44ll» 


BONDS  I  8UBD  TO  UNION  PICIFIC  BAILBOiD  AND  BRAN0BK8. 

(UndersctscfJnIy  1,1802,  a*  d  Jnly  -\  n6t-  principal  paxablo  in  90  years  after  date,  tad 
iLteictt  eemi-annna  Jy,  in  January  and  July,  botn  in  lawful  money.) 


6s,  Union  Ppcific  Ruilroad $W,W8,000 

6*,  Union  Pacillc  E.IO  k.R 6,30:1,000 

«8,  bioux  City  &  P.  clflc  R.R 
6e,  iMitra-  raciflB.K 
lis,  Tci  tr  I  Bran  h  (Kansas). 
6s,  We^ern  Pacific  k  R  ..  . 


»  •  •  •  «  a  • 


1628,320 

S2  78»,<P'0 

1,6(0,000 

320,000 


$9ft,6t«,000 

6,}01,0i<0 

1,68'),830 

24,-;7 1,(100 

l,«iOO,000 

820,OUO 


640,000 


1,6S2,000 


Totul  amount  issced $58,638,3^      $10,880,820  $l,282,000 


1809]  oomnROiAL  ohroniolk  and  hxvikw.  163 

COMMERCIAL  CHRONICLE  AND  REVIEW 


^^*0^^*0^^^^^0m^^0»^^^^0^0*^^^^^^^^^*t0m^^0 


Moncts-ryAff-iirs— Rflteflof  LoAneandDlPConntti— Pcmdn  told  at  New  York  Stock  Exchange 
lloird— Price  of  Governmetit  Securltit'e  at  New  York— Course  of  Consola  and  Air  *»ric«n 
Seen  itiea  at  New  York— < 'peoire,  Bi^he^t,  Lowest  nn^i  Cloeing  Prlcen  at  tho  New  York 
l!^tnck  Exchange- General  Movement  of  Coin  and  BallionatNew  York— Course  of  Qold 
at  New  York— Courae  of  Fore  gi\  Ezihaoge  at  New  York. 

July  has  been  marked  by  a  more  settled  feeliDg  id  monetary  affairs.    There 
bjjj  been  a  steady  reaction  from  the  extreme  Btrin^ency  in  money  which  had  pre- 
Tai.'td  for  some  weeks  previoas  and  at  the  close  of  the  month  the  rate  on  call 
loans  was  5®  7  per  cent  and  on  prime  paper  7®  9  per  cent.    The  change  of  tone 
was  doe  almost  exclusively  to  the  release  of  a  large  amount  of  carrency  pre- 
viously taken  into  the  Treasary.    According  to  the  Debt  statement,  the  Jaly 
parchnsea  of  bonds  by  the  government,  with  premium  added,  amounted  to  some- 
thin?  over  fl  7,000,000,  while  the  receipts  on  account  of  gold  sales  were  about 
$2,750,000,  80  that,  upon    these  operations,  the  street  received  a  balance  of 
$14,250,000  of  currency,  about  the  amount  which  had  been  previously  lost 
through  the  preponderance  of  Mr.  Boutwell'a  sales  of  gold  over  his  parches  s  of 
bon<^8  and  the  large  receipts  of  the  Treasury  on  account  of  internal  revenue.   Con* 
trary  to  expectation,  there  has  been  no  influx  of  money  from  either  the  West 
or  the    Soatb.    The  latter  section  is  evidently  hoarding  currency,  in  the  absence 
of  backs   of  deposit  or  of  any  means  of  employing  its  savings,  and  having 
apparro'ly  no  balance  of  indebtedness  to  the  North,  is  not  compelled  to  Feud 
money   here.      The    West,  inetead  of   settling  its  maturing  obligations  in  cur- 
rcr  cy   or    forwarding  here  its  bank  balances   for    temporary  employment,  has 
rf  qiiired  all  its  funds  for  local  businesa  and   settled  its    Eastern  balances  by 
ffp  cially  heavy  saipments  of  breodstuffs.    We  thus  find  ourselves  at  the  begin- 
rli  n  of  Augu.'-t,  close  up  n  the  period  for  the  Western  crop  movements,  with  tho 
carrt-ncy  more  than  usu  I'y  distributed  over  'he  country,  and  wi'h  but  little  cir- 
cn'atioo  at  the  East,  the  amount  of  legal- tenders  in  the  New  York    Clearing 
H.Mise   banks   on  July  31,   being  only  356.1(»0,000,  asrainst  a73,6i><'.000  on 
Au2a>t  1st,  1868.    This  condition  of  things  eogRfsts  the  probability  thU  the 
WfiHern  demand  en  this  city  for  currency  to  move  the  cropa  will  be  less  this  fill 
th.tn  usa»l,  which  is  a  consideration  favoring  a  steady  money  market  for  the  next 
(ew  wet-ks. 

The  pa^i»r  feelinjr  in  money  has  contributed  to  a  more  settled  tone  on  the 
Slock  Exchange.  The  severe  experience  of  operators,  duiing  thesprins?  months, 
La-  naturally  produce  1  a  marked  cmtion,  with  a  consequent  inactivity.  Some 
cf  ^he  larger  speculators  have,  under  this  condition  of  the  market,  taken  a 
icnjTt by  vacation,  ami  stocks  have  thus  been  very  much  left  to  take  their  own 
cniir  e.  Tht-  only  features  of  interest  have  been  in  what  are  known  ••  s  the 
V.ade  bilt  stocks— New  Yrrk  Onlral,  Hudson  River  and  Hurlem— which 
liive  been  actively  dealt  in  at  a  lar^e  advance,  owing  to  the  negotiations  for  the 
cor;<:oIidatioD  of  the  two  fo'mer  roads,  and,  a?  is  reported,  the  intend' d  declar- 
at  »  of  a  large  scrip  div  dend  upon  the  latter.  New  York  Central  advanced. 
nitlin  the  month,  from  1891  to  21 7};  Hudson  River  from  159}  to  191,  and 
Iliirltm  from  142]  to  16bf.     1'he  market  generally,  however,  has  failed   to 


164  OOMMKRCIAL    OBRONIOLS  AND    BKTIIW.  [Au^%$t, 

respond  to  the  epecial  firmnera  on  tbese  stocks.  Bot,  althoogh  the  tnns^'ctioid 
have  been  light,  amoaoting  to  only  449,150  shares,  recorded  on  the  excbaoge, 
against  1,344  767  shares  for  the  same  month  of  1863,  yet  there  h.^s  been  a  steady 
improyernent  io  the  tone  of  the  market,  the  realt  of  growing  coDfidence  in  tk 
ftttore  coarse  of  money  and  of  liberal  earnings  by  the  roads. 

ClaBBOA. 

Bank  sbarefl 

Railroad    *' 

Coal  "  

Mlnlnflf      "  

Improv'nt"  , 

Tefeifraph"  

Steamalilp"  

Expr*B8&c" 


1668. 

iseo. 

Increaic.       D». 

8,fi« 

1.929 

...  •         !,«: 

1,149.707 

8a8,968 

7?1.M4 

2,260 

7a7 

1.4« 

19,425 

6,99 

lua 

14,8i0 

1,600 

lijm 

8H,S88 

1S.6S0 

M« 

56,901 

11,490 

....         8i,:n 

76,4li 

83,101 
449,150 

KSU 

1,844  767 

»«,«: 

I,ti(i8,3t6 

8,293,384 

...  .        8,«,CM 

ToUl-Jnne 1,844767 

Bice  Jauaaryl..  . Il,ti(i8,3t6 

The  measures  which  have  contribated  to  the  e^se  of  money  ba?e,  at  the  fam 
time,  been  pioductive  of  an  extraordinary  activity  and  firmness  in  Govern  nent 
secarlties.  A  r.  Boutw  U  has  boaght,  on  the  open  mirket,$  14,000,000  of  Fire- 
Twenty  bonds  32,001  OUi»  being  on  accoant  of  the  Sinking  Fund  and  $12,00),- 
000  Bubjict  to  the  approval  of  Congress,  the  Secretary  probab  y  aasamingUttS 
Oongresi)  will  hereafter  consent  to  these  purchases  being  charged  to  accoa&t  of 
the  linking  Fund,  f  r  the  period  antecedent  to  bis  incambency,  when  the  bv 
providing  for  the^e  operations  was  not  enforced.  The  resolt  of  tbeae  large  viib* 
drawais  of  bonds  ^rom  the  market,  and  the  vnticipation  of  farther  large  par* 
chases  by  the  Secretary,  in  Auga^t,  was  an  advance  of  6® 8  per  cent  on  all  boods 
except  those  issaes  chiefly  held  io  Europe.  In  July  there  is  asoally  a  free  foreigc 
demand  for  the  reinvestment  of  the  July  interest;  this  year,  however,  the  sap- 
ply  on  the  foreign  markets  appears  to  have  been  adequate  for  that  purpose  acd 
few  have  b^en  exported. 

BONDS  BOLD   4T  THB  H.  T.  STOCK  SXOHAy«B  BOAED. 

Claaseii.                                                            1868.  1869,  Inc.  I>ec. 

L.8.  bonds $S6,»i4,S0O  $82,9^0,100  $6,605,909     $  

U.S.note*.  jJ82,tK»             '«tfl'^^ 

St'c&cUyb'da 17,860^)0  6,592.000             10.7•^5t'B 

Company  bMa 1,188,600  1,134,600            i-JM^ 

Total— Jane $45,095,200     $40,676,600      $       ....       $4,4Ia.fi0 

Eince  Janaary  1  8Lii,U0,3;0     814,997,^59       4,857,539  

The  daily  closing  prices  of  the  principal  Government  eecurities  at  the  New 
York  Stock  Exchange  Board  in  the  month  of  June  as  represented  by  Uie 
latest  sale  officially  reported,  are  shown  in  the  following  statement : 


PBICBB  or  GOVBBNICKNT  8B0UBITIB8  AT  HBW  TOBK. 


Day  Of 
mouth. 

1 

9 

8 

5 

H 

7 

8 

9 

10...... 

1*^..     . 

18 

14 


,-8'»,  1881.-^, 
Conp.    BLeg. 

1862. 

-6'p,  (5-90  yn.)Conpon 

1864      1»6,   new.     '«7. 

•6%     t-pa. 

u^>i 

141» 

nihi    11^)^ 

•     •     •    B    • 

115V 

• 

i*< 

117K 

1«1K 

inx  u^^i 

1163f 

116V 

ll^H 

}t% 

in;^ 

iiTK 

122 

inx  nsjg 

(Ho:id«y.) 

mx 

iwx 

Ut^i 

lUbS 

VIH 

•  «  ■  •  • 

117?i    118X 

•  »    ■  • 

11«H< 

■  «  »   B    « 

li*-!* 

116!^ 

iitli 

mx 

117H    

116K 

n$H 

116 

vr}% 

IITX 

117X 

u^x 

118        IISV 

H6X 

11«« 

217 

10* 

118 

•  •  •  •  • 

wi% 

HBX    119X 

117« 

117V 

n7\ 

I'A 

1  8K 

117  Ji 

12Utf 

119       119iK 

117V 

117V 

II^N 

I<»'S 

12'X 

laox 

ia«« 

1213^    UIH 

IfU^ 

U»H 

12l>.^ 

]I0 

u^s 

138^ 

IvlX    12tK 

180 

1«V 

ll**^ 

1?"?* 

liOX 

van 

mn  u^x 

1«0X 

liUV 

vmi 

il^ 

1S69] 


OOMinEBOIAL    OBROKICLE  AND    RETIBW. 


15& 


Dsyof 
month. 
13... 
!6  ..  .., 

17 

P 

•2) 

■2] 

'li 

0.. 


■'A. 


V-, 


iK 


^45' »,  1881.-^, 

Conp.    Keg.    ISfiS. 


>•••••••  I 


120V 

liO,V 
12 '>r 
131 

ma 

121 
121  J< 
123 
123X 


117V^ 

1W5< 
116X 


120  J4 
120;< 


120«i 

•  •  •  •  • 

121 

•  •     •  • 

121 X 
122X 


12}5«' 
123',^ 
1:3  *i 
1.3  •< 
liS>,' 
lv3>^ 
12^v'^ 
l-i3)i 
12:li^ 
123,% 
124 

12^ 
125)^ 


117)i  121S' 

liv>i  125  S' 

117>i  I21j^ 

132>»'  125>i 


18»}4. 
1213^ 
121  »i 
121  \ 
121,\ 
12i»i 
121  >tf 
12:»^ 
121^ 

•   •  •  •  a 

121  Ji 

122>^ 
12. 'X 
122« 

I2;ii^ 


20yrs, 
1865. 

•  •  •     • 

121X 
12P4 
121^ 
IVlJi 

121  fi 

121  h; 
ma 

•  •  •  •  • 

122V 
122i< 

1»2X 

128 

12^^ 

123X 


117M  11 8  »^ 

I28>i  123^ 

117><  Una 

123)i  123;i 


)  Coupon— 
new.  lt«67. 
120^ 
12t*^ 


1 

l:0,>^ 


U0\ 
!2(»>^ 
120>^ 
1  0)i 
10 

120^ 
120)i 
121 

121>^ 
121 K 

122X 


122V 
116S' 


12(;>» 
1-0,V 

12()V 
120^ 
l-(»'e' 
120^ 

Via 

12U*. 
121>^ 
1*1 

12;  Ji 

J22>i 
132 1 

116X 

uia 
nba 


-5'B,10-4. 

S«S.yr8.C'pD. 

' 110^ 

llOii 


liO>, 


isnv 

ua 

IvOi^ 

12'H 

1211?,' 

12  a 

121 


iiox 
iio;^ 

iio>^ 
iiox 

•  •  •  •  • 

ma 


122  1I4»J 
114X 

ll«>tf  103 

122  114^ 

118  107;^ 

Hi  ma 


OOUBBS  or  C0HBOL8  AlID  AMBBICAIC  BBCX7XITIKS  AT  LORDOIT. 


Date. 


'^  iar?day 1 

•  ■.-,       ..  n 

'  •  ■  J I  ti  uy  ,..,,,,,,,,,   o 

"•■.::Jav 6 

'  ;' -  I'lv  B 

''.\fnj.^sday 7 

1 '  ur»(lay h 

F'id:iy  ...• 9 

"^-itnnLiy     10 

>'<"iLi(l«y 12 

Vi  «liy H 

^^  odiivrday 14 

T'liir-day 16 

F.-iliy 16 

M  >ij(]-\y 19 

;;  siay 20 

Wr-riL-.-silay 21 

luiirj-day 22 


COUB 

for 
moD. 

oia 

02Ji 

9'ia 

i»3M 

•.•3>, 

9« 

93  k 

93>^ 

9^M 

tt3W 

93>,' 

93>» 

93S 
9^>6 
93>i 
»8M 


Am.  secnrities. 
U.S.  lll.C  jErie 
6-200  sh*e.    ehs. 


80^ 

81H 
81  Ji 
8i?i 
81% 
81  ^^ 
61  h 

81  >i 

81X 
KS 

81^ 
8:i,'i 
82 
8-2  )i 

82  « 
8.J;i 
8:i^i 
83>t 


95 
95 

9'>;< 

91 
ttSX 

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96Sfr 
96>^ 

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93 
9« 
93  J^ 
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95 


19)4 
19?< 
!9^ 
19M 

19^ 
195< 
18>^ 
183tf 

ISV 
18H 
18H 

l^H 

19.V 
19V 

19V 

19 

19 


Friday 23 

"alurday 34 

Mondny  ...«....,,...V« 

Tueaday  27 

Wediietfdfty. .    as 

Ttmredaw U9 

Friday ^o 

Satuiday 8l 


LoweRt, . 
lligheBt. 
liange... 
Last.... 


■••«• ...  I 


TyOW)    ©'^ 

His  yafi 
Last , 


Con  8 

for 

moo. 

9?V 
9'^>t 

93  S 
931% 
93V 
93  Vi 
9<^ 

93  VI 


Am.  Bccnrities, 
U.S.'IIl.c. 
5.20s  eh'B. 


83 

8v?S 
82  S, 
Sl\ 


92^. 

R),?^. 

93  \ 

8.^?i 

\ 

3 

93V 

8:3>4 

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74  S 

94 

8» 

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9»'i 

9;iv 

83\ 

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94  V 

9>^4| 
94 

94 
94 


93 

9ft 

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94 

'9V^ 
9^\ 

HV 
94 


Krie 

Pli'B. 

19 
19 
19 
19 
19 
VJX 

19V 
19X 

isx 

19^ 
19X 


17V 

^a 

9-V 
19>i 


G(>I(]  baa  attracted  little  epecalative  Snterrst,  aod  the  basincss  at  the  Gold 
Room  has  been  very  light  There  appears  to  b  ive  been  coi  siderabie  iW  ap- 
P  iDtiTicDt  of  the  e2i)ectdtioD8  of  operators  relative  to  the  exports  tf  Fpecie, 
the  .sliipinenls  havin;;  l)een  comparatively  light,  vhile  it  was  supposed,  in  m 
V.:(i  laie  large  excess  of  imports  over  exports,  and  the  heavy  interest  p  ym  nis 
to  be  ir.ade  to  Earope  dmiog  July,  we  shoold  b  ve  to  ship  large  ainr  nuts  of 
^'M,  While,  therefore,  it  was  predicted  in  some  qaarters,  at  th '  opfiilt)^  of 
the  month,  that  apoo  these  grounds  the  price  would  advance  from  137^  to  140, 
it  steadily  declined  to  134^,  and  ranged  for  the  most  part  below  l'A6,  Daring 
the  month  of  July,  last  year,  tt  e  price  ranged  between  140}  and  145^;  in  1867, 
b  tween  138  and  140^,  and  in  1866  between  147  and  lo5|.  llie  supply  on 
the  market  has  t)e<D  increased  daring  the  montb,  tbroai;h  the  government  pay- 
ments of  July  interest  and  the  Treasury  sales  of  ^?|0  0,0(^0  of  coin ;  and 
beDce  oa  the  Ist  of  August  there  waa  over  $36,000,000  of  private  gold  held 
OD  deposit  Id  the  Treasuryi  the  largest  amoont  ever  reached. 


COUMKRCIAL   OHSOHIOLE  ASD   SBTOCW. 


[A»JlUl, 


day  1*1»IK 


i.^^lwi^ 


|Ffidi».... 


,- .Jl 

W«dsecd)iT JSIMX' 

Thii'td«J WiaSi 

Piia.J ■■■■....»)  !»S 

■inra^. ail»M 


I'lii-  lullowioE  ladle  will  ^Iiiiw  ttie  opeaiog,  bigaeai,  luwcst  dad  closing  pricif 
or  all  Ihe  raiiwsjitoil  miBcellnpeoua  securities  quoled  at  Ibe  New  Torii  Stuck 
Kxchuiit;e  durini;  the  montba  oi  June  and  Jai;,  I8G9  : 


1.  Open.  Ulcb.   Lan. 


CWcaeo  &  Allon 

d.i  ilo    pref. 

Chlcsso,  Bml.JtQalncr  -■ 


IMS    leo       1S«       Kit 


(W«      »S    "% 


do  pref.,, 

^klBlUDd... 


'-  Ml  13)  1* 
SI         78X     jS 

„  ..  1»X     WJ.     "I 

..  l^H     Iji        119        IISK     IISM  116,'i  lUJI  lilt 

.  i<js;«   iL>»x    >1X   :oi      lua  Iiww  >'*  lu^ik 

,     16         •iiii     IS         Tl         74  It        ti       V.     ' 

.  Ill       no       lis       lit       lit<i  111  no  l:i\ 

..  11)3       lu3       l<kS       luT       IM  luS  Ml  Hi  , 

.  ISl       1ST       14*       IWtf    Itl  IWX  ll'X  l*^i 


litjuilbol  »  31,  JoMph ■■„  —  -■-       .~ 

ia                do  ptef. liSH    ia*       lis  liO  119W    ISO 

HndsonRlver \Sl)t    VX}t    IMX  los  lUX    IM 

Illlunlii Central. tw^    141       143  14S  mn    iig 

JolleiA    hlaco 1«         tW         IW  ««         


,  »X       fX      «X      »»( 


»«      »Jt  „ 


JMJt    1»       lSS>f    IJO       1»X    IK«  111! 


,,,4.a.,...,u...,,..... 

mchlKMi  Central .- _-  ,  -- 

fio       B.  AN.lnd IISX  IIH  1UT«  I..7K      

KlIwBUtcsiSt.  I'liiil 1V)i     «|  -KH     TOX  W         7SX     "       ' 

,1,.                 do  iicvf. SI         mt  SIX      MX  M         WX     MK    I 

Mo(rU*KMeJ »IX     MX  e»          8a)i  8KX      «        MJi     ^ 

Ne»JeneT Ill  IM  >«)  14«         

An         CnnL-al 117  »W  Wl  IW  1«X    IWX     «      1' 

^■ewYorkCelllr«^ IDIX  1«X  1^  I»5X  IWX    «^rt    1»V  " 


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da  < 

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Bajdlna'     ^•."•••.   ■ IWX  IWX      »8X  ^«  WX  «X  »'X  1 

ToWa,W»b.*Wc(Wcn.;iri"'.'.'.'.','..'     TJX  "TX      W'X      1»  T»X  TJ'  T]«  i 

do        do         doptoi e«  m         BU         SI  Tfi  at  It  t 

Mlscellaneont— 

Cnmbttrluid CuBl W  M         SHX      MX.  31  MX  ^  ^ 

Wltk^EMrioCnl 41  GU          IS  OS  M  <;i  U  '' 

Del.  A  Hud.  Caul 181  134  \ia  ISl  lai  m  If!  ir 

PuUlGlUU blX  B>X     iiOX     i>8X  »fx  Vi\  UJK  >' 


SIS""'^.'""'.:::::-: SS  S    '«  ■•    •«  »« 

r'."p»'..::";:vr;;;;;r:S    S"  .;^  .•,  ..    'i 


151 


American 

Amtrjcin  M.  Dnloi 

Unilr-dst«tet'..r" 
JierchanfB  Dnion  .. 
W8ll*.FaiKo4Co..,..: 


Of 


««     »-■•'     W.V     <0.V    .... 

jp     w5    M*       ^"^     JJ^-    «if   "jnv 

IS      n«    11      is-*    '2      ™      u»x 


j.™,.i  bill,  ..d  or  b,n  &  V.™  ;t„  ;;» s'r ; "»  "ppi, 

""■Ksr""" !''?""  "  "'."1 "  ».i  ,=„. 


Jl' ;; iin'^^ma 


...iM>*am«  «,«a,i,«  «^a4o«  78«a79«  «vs«.>^  ,i  av.« 


JOURNAL  OF  BANKINgTcURREN^^ 


itelow  we  give  Ibe  relnrns  of  the  Bunks  or  tlie  tl.ree  citi. 


"""J  i....taai.iao.a^i 
""jn....  sssTstsftS 
""ty  ifl...  »M,ais,83i 
""'IT  ai.. .  s(y,ii(n.o  9 

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■runt),  ao..  SSB.<S-,0«i 
"U'ryST..  an.mi.fOT 

[|:J  J;...  .  aaj.os'j.ws 


IMM     |iH.a7D,(0» 

ii.v»)      b4,sh,:m 

■8,6a6       M,  KM.  1 58 


ch  lb:! 


^*rt"  a.;::v.  KI;3S;«;    IS;?;?;'^ 


Jtttitt  310         1S{  JU11  fl'PI 


L.  Tend'B.    j_  c'cnr'p 
61.UI.VJS      'wItho 

B3.4iM,13.1        «0«19',. 

u),v)n.i»T     -.0  uui 
tw.S!iM>M     aar,-.i(,; 


156 


JOURNAL  09  BAKKIHO,  OURRBNOT,  AND  JIKAHOS.        [^«^UC, 


Date.               Loanp.  Fpecie.  Citcalatloa.  Depoelts. 

April  10. 237  1H0,«7  8,  W  1,^18  84,6(W,JW  rM^O^ft-O 

April  17  255,lrt4.88S  7,8UJ79  84,436.76^^  I'»,i0i494 

April  24 S57,16S,074  8,830,  <(iO  84,0()0,5  1  177.310,060 

May   1 3(V »,  ta6,1tX)  9,«)7«K  6  88,97i,0&S  ie.i,94S,565 

May   H 8tkS,486,S72  lA,(l8i,4^9  8a,9tJ«,liK)  19,8  3/87 

May  15 ^UU,49^8i47  16,874,7A9  88.977,'293  199,392,449 

Ma>2! 370,276,952  15,429,401  ^{8,927,8^6  199,414,869 

May  ;:9 S74,U85,4tfl  17,871. «»0  88,920,8)5  S ).),055  GOO 

Jane   5 S7.VI19,(J09  19,061,l.'i8  88,9>3,995  199.124,(V4t 

Jane  12 27l,{«N),7d5  l!).05:),580  84,14t,7W0  19S,886,i4B 

Jane  19 !k05,841,9O6  19,025,444  84,198,829  18H,S14,<10 

Joiie26 3tO,4.Ml,783  80,2  7,140  84,2I4,7H5  48I,774,6(« 

J.ly« a5^ .868,471  28,620,267  84.217,»*78  179,929,467 

July   0 25\424*942  80,266,912  84,277,945  l6a,r.<7.23J 

Jolyir V67,()06,2«  81,(>5%4d0  81.178,487  188,481,7  1 

July  -4 28'.K64 1 ,889  80,07.J,4;'4  84,1  IU,7 18  15«.»,22  26 1 

Jcly  81 260,580,225  87,S  1,984  8I,(  68,677  196,4 16,448 

PHILADELPHIA  BANK  BBTUBKB. 

Date.  Loans.  Specie.    Legal  Tenders. 

Janaaiy4 $51,716,999  $852,488  $18  210,397 

JanuHryU 61.642,2:^1  544,691  13,49*t.l00 

January  18 62,122,738  478,462  13,729,498 

Jana  ry  25 62.5:^7,016  411  SfT  14,064,hTO 

Feb  Oiiyl 62,6-{2  818  8  ^782  14,«i6,570 

February  H 6«,0>9,716  817,0.1  18.7%,59S 

Febru  ryl6 62,929,891  801,681  18,578,043 

Febr  ar>22 62,4!6,I46  2-1,307  18.208,607 

Marcbl 62.351,8:>1  256.988  18,010,5(58 

Marc    H 52,283.1100  297,887  18  25^201 

March  15 61,»ll,6;2  277.617  18.028,2u7 

March  22 61,828,419  2-i6.097  12,766,759 

March  29 60.597,00  210.644  13,021  H15 

April   6 60,49!^>^»i6  1M»,0'»8  12,169,221 

April  12 60,770,1{»3  181,246  12,643,857 

April  19 Rl,l78,)J71  167,818  12,9tl,78J 

>kpril2«> 61,294,222  1^4,26l  13,64«).061 

May   8  ...   61,M0.»8J  201,768  14,2^,371 

May  10 61,93i{,530  27U,5'26  14,h2^808 

May  17 6«,)68.t26  2^6,167  14,606,865 

May  24 62,8fil,764  174,115  16.087,008 

My  31 62,210,874  18V4«7  16,484,947 

Jaue   7 62,826,^57  160,316  16,87^, 'MS 

June  14 6:il2l,8iJ0  159,451  16,1:8,3^2 

June  21 68,8t0,0»5  148.796  14,972,l;!a 

Jun'2^ 63,661. 17i  180,681  14  667,327 

July   5 6.1,937,621  81)8.621  14,0  1,449 

July  12 68.140,756  486,291  13«41&,ll'8 

Jnlyl9.....       53,128,598  466,751  12  944,886 

Jay  26 68,46i,100  390,877  18,076,180 

BOSTOlf  BAHK  BBTUIIKS. 

(CapiUl  Jan.  1,  1866,  $41,900,000.) 

Bate.                              Loans.  Specie.     Leira' Tenders. 

J4n><ry4 $98,423.M4  $^203  401  $i2,9:^8,:i3l 

January  11 100,727,0  7  8,076,844  12,8'>4,700 

January  18 102,206,209  »,677,»iS8  12,9^2,827 

Janu  ry  26 102,969,942  2,894,71^  13,228,874 

Jbcbrmyl 10:^,69h.^6'<  2,161,284  32,t*4  225 

Feb  uary  8 10 1,342,425  2,07.3,908  12,452,795 

Fcbrnaiy-15 108,215  0>4  l,b4fi,624  11,642,^56 

Febnmry23 102,252,632  1,546,418  ll,x(iO,790 

j«ar«hl 101,809,5!?9  1,2»<.«:W  11,200,149 

March  H 1(H.426,^»32  1,297,699  10,«s5,972 

Marcii; 100.8i(>,:303  127.315  10,8ti9,l88 

March  22 9i»,553,319  l,3:a),86*  10,490.448 

Mttrrh29 99,670,945  987,760  11,646,222 

April    5.... 96,9I.9,'.14  862,276  11,248  884 

April  12 0«,625,472  750,160  11,891,5.9 

April  19 19,llf>,r60  63l»,460  11,4;9,0<« 

April -^6 98,4171,711  617,485  1«,.S61.827 

May   3 100,1*7,411  708,968    '      12,852.118 

May  10 1110,5  W,642  !,'<  87,749  19^6 1 8,472 

May  17 101,474,627  l,184,^86.  12,^88,527 

May  24 102.042,182  934,560  lH,19t,64t 

May  81 10^5.8,278  772.897  13.696,857 

June    7 1(18.643,849  640,589  18.454  661 

June  14 104,352,64vS  601,742  19,648.615 

June  21 103,6t4i,f»6  959,796  19,067,805 

June  v8 102,675,825  l,10^66t  11,784.801 

Jaly  12 102,683.948  8,140,976  9,n«,ab8 

July  19 101,405,211  8,«5Niei  8,511,879 

July  26. 102,702,540  8,Q9MW  9^788,481 


L.Taid^. 

48,644,711 
51,001,  83 
5^.677,888 
56,««,7»2 
P5,105,5T8 
66.&0>,SS6 
57,8  8.  cUS 
67.8]0,.378 
6t,28S».429 
60,^69.258 
4V,6I2  4{» 
46,163.990 
4s7^,268 
48..  2.7ti 
51.S59,T1« 
5l,27U869 
5t},  101.6^ 

DepoidtS, 
$3!<.  21,0«8 
88,708  511 
84.fl  A 156 
>  9.5^6,462 
2»,677.948 
44>.a^O  .S99 
3s,71 1,575 
87,91)0,966 
87,7^)6.34)6 
88;<9:i,956 
87,57  ',682 
86,9*iit;009 
86,863,344 
85,3r7&.854 
85.029,188 
87,031,747 
87.4^7,285 
88  i^  1,2^1 
8il.i7N898 
40,6tl2,742 
41.0 '1.4.0 
49.  47  319 
42.»4).&I0 
42,0U6,077 
42,066,901 
41,517,716 
41  321,537 
40.140,497 
89.894,869 
86.160,644 


Deposits. 

$87,5.^767 
38.0^11.841 
88,717,193 
89. 65:  ,747 
40.218,469 
89,6»3,8  7 
87,759.7  9 
8K,323.814 
85,  ^9,466 
85,5-,6.680 
S4,0- 1.715 
82,641.0;? 
82.9.4^4:^ 
83,504,(99 
34,«2,:rr7 
81,257,071 

86,73^742 
87,467,8^ 
88,706,894 
89,847,831 
88403,694 
88.401,1411 
87,4IH719 

$4,831,417 
$l,8ftl,7fi 
818iOC4n 

aS3lXtl88 


9l(V6  ,451 

771»4,»C 
•aj,9(6.7« 
7''3,'.«a.Mf 
»!,!  74577 

7a8.747.«i 

7i»l,t.4%4Sl 
766.«i.USI 
8S6,(M.«4I 

76  .iM».HX 
»4f^76\aa 
fi76.d4U,tfl 

71l4fc,l« 
5  MA(r 
614,4S6,4»; 

Circulit!^ 
$i0.i«3.ni 
luj»',l3 
10.S9f)'49 
10,5«iW 
10.i4i,35: 
1U,5.^«.^ 
10,ifi,« 
lULl^Mfi 
ia,4VUM 
]0,4i&!fi3 
16.4-fi.M 
l«,*.l,l»* 
}0.4A4» 

lO,-***.!* 
]U.6.'i«.4S 
lU  6J4,4^ 
lrt.6i7..<15 
1U«17,»I 
l>,14.Hll 
llt,&lS24i 

lO'K^B 
H',«.1,«J 

l(l.6£i.7'H 

lu,»i\«: 

l',6i8.W 

io,©-4,ta 


Ciicalatirt 

$;5.iii.,545 

25,2T->.' 

25,Sl3.5ii 

25,272*0 

9S,S12.'>-" 
25w2  iflS: 
U,3511» 
9S,aM.de5 
9J,-301>'7 

25.8  i.^>' 
95.3  ].«W 
94.5'Aat 

26.tM.l*" 


2B»»t4i4 
25.4191$: 
2^mW 


9M1S.« 

9MKlg 


SSmm 


T  li  R 


MERCHANTS'    MAGAZllNE 


AND 


COMMERCIAL     REVIEW 


«^^0*0mm0*0^0*0^0^m^*0^^^»0*^*^t^^^t^i^^^t^' 


SEPTEMBER,     186  9. 


THE  RAILWAT8  OF  INDIA. 

Now  that  the  necewity  of  further  railroad  development  in  India  is 
becoming  so  important,  and  the  plans  for  its  accomplishment  are  being 
discoased,  the  following,  showing  the  extent  of  the  present  system  and  its 
results  will  be  of  special  interest. 

If  the  introduction  of  railways  into  India  was  tardy,  their  development 
io  that  vast  country  has,  all  things  considered,  been  encouraging.  Sixteen 
years  ago  India  had  no  railways.  In  1853  the  first  line  was  opened ;  by 
the  end  of  the  year  22  miles  were  in  working  order ;  now  3,943  miles  are 
io  nse  by  the  public.  Since  1860  the  construction  of  permanent  ways  has 
been  effected  with  greater  vigour  than  at  first,  for  during  the  six  years 
ended  with  1866,  no  less  than  2,735  miles  of  new  road  were  laid  down  and 
opened.  The  average  work  of  those  years  was  456  miles  annually.  Last 
year  349  miles  more  were  added,  and  thus  the  aggregate  mileage 
was  brought  up  to  the  number  stated  above.  Contrasted  with  the  net  work 
of  railways  atretching  over  England,  the  Indian  system  appears  simplicity 
itself;  the  roads  are  nearly  all  main  or  trunk  lines.  Of  branches,  at  present 
there  are  very  few  indeed. 

1 


160  THK  RAiLifATS  ov  IKDIA.  [SepUmltr^ 

Three  companies — the  East  iDdian,  the  Great  iDdian  Peninsolar,  a&d 
the  Madras — have  hetween  them  to  ]ay  down  656  miles  in  addition  to 
their  existing  works ;  that  accomplished,  Madras  will  be  in  direct  railwtj 
commuDication  with  Bombay  ;  from  Bombaj  a  line  will  mn  throngh Central 
India  and  join  the  East  Indian  at  Allahabad,  thence  eastward  to  Calcutta, 
and  westward  to  Delhi  and  the  Punjaub.    From  the  terminus  of  the  Paa- 
juab  line  at  Moultan,  goods  and  passengers  can  be  carried  down  the  Indos 
by  the  steam  flotilla  to  the  Scinde  line,  and  b^  that  mtsans  reach  Earracb«e, 
th«  extreme  north-western  seaport.    An  inspecUon  of  the  riulway  map  d 
India  shows  that  of  existing  lines  there  are  three  termini  on  the  eastern  aod 
four  on  tbe  western  seaboard  of  the  Peninsular.    The  route  just  traced  li« 
along  the  grand  arteries  of  traffic.     Of  the  smaller  lines  the  Bombay  and 
Baroda  and  the  Nagpore  branch  of  the  Great  Indian  drain  the  priacif4! 
cotton  fields. 

Though  certain  lengths  have  to  be  completed,  yet  the  benefits,  both 
strategical  and  commercial,  already  derived  from  the  existing  lines  aid 
enormous.  Ten  years  ago,  when  only  300  miles  of  railway  were  opeod, 
^  it  took,"  says  Mr.  Danvers,  **  about  four  weeks  to  travel  by  day,  and  &s 
many  months  to  convey  a  regiment  from  Calcutta  to  Simla ;  now  it  occu- 
pies five  or  six  days./' 

The  railways  are  in  the  hands  of  eleven  companies ;  their  relative  import- 
ance is  disclosed  by  the  figures  of  the  subjoined  tables  : — 

lOLKAGS  1st  07  XAT,  1868,  AND  IiOOOMOTITSS  AXD  KOLUVO    STOCK    OV  IIBUX  Kill* 

WATS,  lar  Ot  ^AHUA&T,  1868. 

Total  Tehic-«, 

Miles  PasMSffer  incladwi;'- 

Railway.  open.     Locomori.  caniagM.  cou^tr'kf 

Eastlndian 1866  426  860  e.o^i 

Great  Indian  PeniDBula 874  209  968  ;6^SS 

Madraa 646  106  S62  V4i 

Bombay,  Barado,  and  CeDtrallndia....  806  65  181  S.o^S 

Scinde 1<9  25  6i  ^^ 

Punjaub 246  88  116  7» 

Delhi 64  6  107  ^tl 

EasUni  Bengal 114  82  92  f^' 

Great  Soatbern  of  India     1 68  16  83  ^--^ 

Calcutta  and  Soutlieastem 29  12  66  i'^^ 

Oade  and  Rohilkund 42  4  18  ^^ 

Total S,94S  987  2,788  S0.9&d 

The  total  length  of  lines  a  present  sanctioned  by  goyernment  is  5,60^ 
miles,  so  that  1,666  miles  remain  to  be  finished.  The  East  lodiao  Qi^° 
line  has  145  miles,  the  Great  Indian  d03  miles,  tbe  Madraa  north-vesi 
line  180  miles,  the  Bombay  and  Baroda  7  miles,  the  Punjaub  (Delhi  li^) 
266  miles,  the  Eastern  Bengal  45  miles,  and  the  Oudh  and  Bobikoo^o^ 
less  than  630  miles.  As  the  last  company  has  only  42  miles  opened,  it 
must  be  the  least  advanced  of  any  in  the  country.  The  other  compso'^ 
appear  to  haye  completed  the  lines  sanctioned. 


1869]  THE   RAILWAYS   OF  INDIA.  161 

There  are  great  variations  discernable  io  the  proportion  of  locoraotives 
to  mileage  and  rolling  stock  on  the  different  lines ;  thus,  the  East  Indian  has 
one  locomotive  to  3.18  miles,  the  Madras  o.«e  to  6  miles,  and  the  Great 
Southern  one  to  11  miles,  while  the  ratio  of  vehicles  to  each  locomotive  on 
the  respective  roads  was  14, 28,and  16.  The  great  cotton  line,  the  Bombay 
and  Baroda,  has  46  vehicles  per  locomotive. 

The  sketch  map  which  accompanies  the  Government  directors'  report 
shows  that  nearly  all  the  great  cotton  fields  of  India  are  now  con- 
nected by  railroad  with  shipping  ports.  The  collapse  in  the  Indian  cotton 
trade  which^  followed  the  termination  of  hostilities  in  America  must,  to  a 
eonsiderable  degree,  have  injured  railway  enterprise.  During  the  half-year 
ended  at  Midsummer,  India  sent  us  only  729,000  bales  of  raw  cotton  ;  in 
the  corresponding  months  of  1867,040,000  bales;  and  for  the  same  period 
of  1865  no  less  than  2,378,000  bales,  or  more  than  thrice  this  half-yearns 
supply.  Nevertheless,  it  is  officially  reported  that  '*  railways  are  beginning 
to  tell  npon  the  callivation  of  cotton  in  India  in  other  ways  than  merely  pro- 
viding a  more  rapid  and  less  costly  mode  of  conveyance  than  formerly. 
Steam  factories  for  cleaning  cotton  are  springing  up  ;  machines  for  half- 
pressing  are  established  in  many  places,  and  in  others  steam  presses  for 
packing  the  bales  for  shipment  have  been  constructed." 

Upwards  of  £75,000,000  has  been  expended  on  the  Indian  railways; 
the  chief  part  of  that  sum  was  subscribed  in  England.  The  total  number 
of  proprieters  on  the  3 1st  December  last  was  49,690,  of  whom  40,221  were 
stockholders  registered  in  England,  and  819  in  India;  of  the  latter  number 
422  are  described  as  Europeans  and  397  as  natives.  The  debenture  hold- 
ers numbered  8,656. 

To  England  also  the  contractors  had  to  look  for  goods  and  machinery,  as 
well  as  money.  The  value  of  railway  material  and  machinery  shipped 
Lence  to  India  during  the  years  1853-67  was  £23,253,000.,  exclusive  of 
freight  and  insurance,  which  last  year  amounted  to  25  .per  cent,  on  the 
value  sent.  These  pond<»rous  cargoes  weighed  in  the  aggregate  3,529,000 
tons,  and  required  5,339  ships  for  their  conveyance. 

A  census  of  the  number  of  persons  employed  on  part  of  the  railways 
was  taken  at  Michaelmas  last,  when  it  appeared  that  there  were  39,099 
engaged;  36,048  were  natives,  and  only  3,051  were  set  down  as  ^'Ejropeans 
and  Edst  Indians."  At  this  time  and  for  this  number — the  returns  for 
the  lines  on  the  Bombay  side  are  not  included — 2,475  miles  and  271 
stations  were  open ;  this,  therefore,  is  less  than  two-thirds  of  the  total 
mileage.  It  will  be  observed  that  of  the  railway  establishments  twelve 
out  of  thirteen  employes  are  natives.  True,  this  proportion  does  not  hold 
with  all  departments ;  thus,  in  the  printing  and  stationery  department,  of 
362  persons  engaged,  353  were  natives;  in  the  stores  department,  of  1,744 


102  THB  BAXLWATS  OF  nmu.  [Siptoikr, 

hands,  1,6 '5  were  natives;  in  the  locomotive  department  there  were  1^88 
Europeans  and  East  Indians  to  5,210  natives;  the  special  kDowle<^ 
wanted  for  the  latter  department,  rendering  the  employment  of  a  Isrger 
number  of  Europeans  necessary. 

The  European  portion  of  the  railway  service  is  composed  of  a  class  of 
men  who  until  reoenUy  were  little  connected  with  any  department  of 
Indian  adminktration.  "  A  civil  engineer  was  seldom  seen  in  lodia  before 
railways  were  introduced,  and  the  usual  staflf  of  a  railway,  from  the  tn&: 
manager  and  locomotive  superintendent  to  the  engine  driver  and  stoker- 
were  of  course  unknown.  Now,  it  will  be  obeervedy  they  are  to  be  coafited 
by  thousands.  They  go  out  from  thb  country  generally  between  23  a&i 
80  years  of  age,  and  many  spend  the  best  years  of  thdr  lives  there.  Tbe 
mortality  amongst  them,  notwithstanding  the  exposure  to  which  thev  are 
subject,  has  been  below  the  average.**  The  pay  is  already  high,  usaaiij 
double  that  which  a  man  of  the  same  calling  would  obtain  at  ho  ne,  sqJ 
other  inducements  are  held  out  to  healthy  and  efficient  hands  to  enter  U.e 
Indian  railway  service. 

The  capital  authorised  to  be  raised  is  at  present  upwards  of  £84,000,000 ; 
the  amount  actually  raised  up  to  the  31-st  of  March  of  the  current  yeir 
£76,579,000 ;  £00,040,000  on  shares  or  stocks,  and  £16,530,000  on  detM-o. 
tures.  Included  in  these  sums  is  £9,OOo,oOO  raised  during  1867.  The 
capital  account  of  each  company  is  shown  herenoder : — 

CAPITAL    AOTHoainD    BT    cii)VSBNimnr ;    ths   AMouirr   aAum,   av»   tbi  avc^^t 
xzpnroxD  on  ixdian  railwati  dp  to  thb  Slar  or  MAacR,  186:i. 

Amoist 

Anttaorfxod  Amonni     WithOfawtC** 

Railway.  Cap.tal       Actiuli>  r«i«ed  Bxpridnan*. 

Ewtlocjian £28«tf  0,000  £:e8,4S7,518  tiSMt^'l 

Great  lodian  PeniDsala 19,000,  00  18,248,180  17,6l46f4 

Madras 1  •.  0  ,00>  9,650,4»l  8,7M>i 

Seine 2,250,000  2,97,494  «,in.'''2 

lodiiB  Flotilla 624,000  S81 .405  677,0'^f 

Purhub 1 2.7^0,000  2,040,J6a  2,618.551 

Delhi 6,000.000  8,451,64  g,l?9.Ui 

Bomliav,  Baroda  and  CenUal  India 7,6*  0,000  7,S69,164  7,  C<>.1.'< 

East*  rn  Bengal 2,662,000  2,619,498  i,m:i^^ 

Calc  nit i  and  Soutbeastero e00,O«'0  44  ,860  6}di42 

OreHt  ^onthtrn 1 ,850.000  1.85  ,000  1,3  4,077 

Oade  and  Robilkuiid 4,0  0,000  7^.E49  3«>S!^ 

Total £84,886,000    £76,679,016    £75.07165« 

It  would  appear  from  ibis  statement  tliat,  at  the  latest  djite  to  which 
the  a  -counts  were  made  up,  £1,500,000  odd  was  the  cash  balaooe  in 
hand,  for  it  had  not  heen  **  withdrawn  for  expenditure."  The  total 
amount  of  Capital  which  the  companies  estimated  they  should  reqoire 
waB  £1^3,916,000;  the  GoTernment  Banotion  was,  as  the  table  shows,  10 
per  VA-nl  under  that  sum. 


1669]  TRK  RAILVAT8  09  IITSIA*  163 

The  moner  waa  obtained  in  the  following  manner : 

Raised  io  Eoguuid— 

By  flbares £69,268,018 

By  oooYertible  debentares £6,867,44  6 

Bv  iocoDTertible  debentares 10,172,700 — 16,580,146 

Raised  ia  India « 795,868 

ToUlatSlBtofliareh,  1868 £76,679,016 

The  pecuniary  sbare    of    India    in  these    great    undertakings    was 
evidentiy  insignificant. 

The  £75,000,000  which  has  already  been  expended  on  the  railways 
does  not  represent  the  whole  of  their  cost.  The  land  granted  by  Oov- 
arament  to  the  companies  cannot  be  takon  at  less  than  £2,500,000; 
besides  this,  the  Government,  by  making  up  the  difference  between  the 
contract  rate  of  the  rupee — namely  Is.  lOd. — and  the  average  rate  of 
exchange  during  the  construction  of  the  works — ». « .,  2s. — has  contributed 
about  8  per  cent  to  the  capital  expended  in  India.  This  difference  in 
value  would  amount  to  £3,600,000.  '*  The  actual  cost  of  the  railways,' 
Mr.  Danvers  remarks,  ^  is  thus  raised  from  £75,000,000  to  £81,000,000. 
But  the  amount  upon  which  the  profits  are  divisible  is,  fortunately  for 
the  companies,  limited  to  their  contribution." 

Of  the  shareholders'  contribution  £45,000,^000  were  expended  in  Indiai 
and  for  goods,  freight,  and  insurance  £30,000,000  in  England. 

U. 

We  are  told  that  ^  Indian  railways  do  not  form  an  exception  to  the 

nile  that  expenditure  always  exceeds  estimates.    In  some  cases  the  cost 

has  been  three  or  four  times  greater  than  was  expected.    In  others  the 

excess  has  been  very  small."    If  the  companies  have  had  grants  of  land 

and  other  advantages  afforded  them   by   Government,   the  charge  for 

freight  and  marine  insurance  has  borne  heavily  upon  their  resources.  The 
E^st  India  line  will  average  about  £22,000  per  mile,  but  this  expenditure 
includes  looses  sustained  by  the  mutiny.  The  Bombay  and  Baroda  will 
^^  at  the  same  rate  until  the  extension  to  Delhi  is  completed.  The 
SciDde  will  cost  £20,000.  The  Madras  has  cost  ODJy  £15,000  or  there- 
abouts ;  the  Great  Southern,  £10,000  ;  and  the  line  between  Gawnpore 
and  Lucknow  less  than  £7,000  per  mile. 

Tbe  bulk  of  the  expenditure  on  each  line  is  stated  in  the  report  under 
five  or  six  chief  heads  for  each  company.  We  select  tbe  four  largest 
undertakinors : 


'-Kailwaye. 


Great  Indian  H  m>tay, 

<^liief  Items  of  Bxpenditure,              Stnt  Indian.  Peninanla.  Madras.  Barudo,  Ae. 

Vorfcs  and  bridges £8,776,OuO  £6,84  \6U0  £->,44B,tf00  £2.8 v6  500 

Prrmaoeot  way  and  stationfr 6,486,000  4,9i(8  500  2,999.8t)d  1 ,7 kA,400 

Fre^ht  and  iD4uraDce     2,7&6»000  1,817,700  1,'61,00«»  68rt.800 

lU)  I  n^  stock  and  eDgines  . .      .    .     8.145,000  1,888,090  ';98.Oi>0  1,«  9^800 

Kstablishments 8,88tJ,000  1,166,200  717,200  4  8,800 

^i?cellan«oufl.    electric    tel«graph 

Btorec,4c 8,862,000  196.0' 0  36?,700  4  0,000 


Tfltal £27,922,000  £16,842,000    £8,385,600    £7  2iv^00 


164  TBS   BAILWATS    OV   INDIA*  [StpUmhir, 

The  confitruction  of  the  Madras  line,  one  of  the  cheapest,  iDfoWed  as 
outlaj  of  one-eiohth  of  the  total  expenditure  for  freight  and  iBsarasoe. 
The  Bombay  and  Baroda  appears  to  have  been  more  fortiinaielj  sitoated 
with  respect  to  the  same  iteras. 

Sirgle  rails  are  characteristic  of  the  Indian  permanent  way.  Of  nearlj 
4,000  iDiles  now  open,  only  209  are  provided  with  doable  rails,  and  these 
are  f  und  on  four  lines,  viz.,  the  East  Indian,  which  has  94^;  the  Great 
Indian  Peninsula,  9S ;  the  Bombay,  Baroda,  and  Centra]  India,  11|;  Jiod 
the  Siinde  5  miles.  The  traffic  is  eminently  a  good  traffic,  for  lessthtD 
one  third  of  the  total  revenue  is  raised  from  passengers.  The  passen^r 
traffic  is  markedly  a  third-class  traffic.  Last  year  I3f  million  of  passen- 
gers were  conveyed  bv  the  various  Indian  lines,  and  of  these  persons 
13,000,000  were  third  class  and  parliamentary  passengers.  This  eontrasts 
curiou-<ly  with  the  statistics  of  passenger  traffic  in  England,  where  tk 
travelers  hold  this  proportion  or  thereabouts — to  four  persons  using  tLe 
third  cla>s  and  ])arliamentary  carriages  there  are  two  who  go  by  the  sec- 
ond  c]a<«5t,  Hud  one  who  travels  first  class.  Season  ticket  holders  on  Indiac 
lines  are  numerically  insignificant,  being  but  slightly  over  6,000.  Tbe 
passenger  traffic  for  each  line  is  shown  by  the  following  table  : 

PASeKKOlE  TEAPFIO  OV   INDIAN   BAILWATB    FOE    TBB   TXAE    SITDED    TBS  SOTH  OF  JCSl, 

1867. 

f ^Nnmber  of  Ptgeenpeni. 

Second  Third  C  ass  and 

Bail  war.                                         First  CUsb.  Clacf.  Parli  mestaiy.  Total 

SaH  liMtan                     ^4,119  111.860  4,M0,«4S  4.436.611 

O  c»t  Indian  P  niosnal 82,698  207,761  S,880,164  8,070.6U 

Madraii          ....       8,019  70,876  1,88 -.76^  l,«lll<^ 

BMnihny,  Baroda  end  Cei.trEl  lodia.       7,1(»2  40,216  1,606,404  1,5517^ 

Sonde 2,097  6,649  186.689  14$,2« 

ruijaub         6,«12  25.8-8  685,111  S-fii':^ 

EaMerii  B<»Pgal 89,827  47,967  1.10*,f.04  l,l90,fS> 

(4iei  Snuthf-ni  of  India 2,188  .  487,027  4M/^'^ 

CHln.tta  »n  •  -onthtastero 3,658  16,216  8  9.277  SW.l^^ 

Oude  and  R  hi  kuDd 801  818  84,469  U.ti* 

T.tal 186,251         626,119       18.088.941       18,746,sn 

Indian  faies  are  low.  The  third  class  vary  from  one-third  of  a  pernj 
to  one  half  penny  per  mile  ;  the  second  claaa  from  three  farthings  to 
eon  etli)n«r  oxer  M.  per  mile;  and  the  first  class  from  l^d.  to  2|d.  roil<. 

AVith  the  exception  of  sheep,  the  live  stock  traffic  appearn  to  be  Terr 
8m»ll.  Dnrifg  the  ye«r  the  Great  Indian  conveyed  208,000,  and  th^; 
BoM  Imv  and  Haroda  212,000  sheep.  The  aggregate  weight  of  gen^ni 
merch  mdise  carried,  exclusive  of  mineral*,  was  nearl?  3,000,000  loci 
exclii  ing  shunting,  the  number  of  miles  travelled  by  trains  of  the  fuor 
lar  e^t  ccMnpanie!'  were  these:  the  East  Indian,  6,239,000  miles;  'M 
Gr  fU  Indian  Peninsula,  2,630,000  miles;  the  Madras,  1,362,000  mil««: 
an<i  t)ie  Honibay,  Baroda,  and  Central  India,  :fi7,000  miles  dariag  lA^ 
year. 


J 


1809]  THB  RAILWAYS  OF  INDIA«  165 

The  subjoined  stotemeiit  sbows  that  the  aggregate  gross  receipta  of  all 
the  companies  in  1806-67,  approached  the  large  sum  of  £5,000,000,  of 
which  £1,377,000  was  collected  from  passengers,  or  £100,000  more  than 
in  the  previous  year ;  aod  £3,321,000  for  minerals  and  goods,  showing  an 
iccre^se  of  £229,000;  the  year's  increase,  therefore,  from  both  branches  of 
receipts  was  £329,000 — this  was  on  the  **  gross  receipts,"  be  it  observed. 
The  net  revenue  was  only  £32,000  in  excess  of  the  previous  twelve  months. 
liut  last  year  the  increase  over  its  predecessor  was  very  large,  for  it  is 
stated  that  in  the  *'two  years  the  rerenue  has  increased  upwards  of 
ill, 000,000." 

acoum  or  indiaw  eailwats  fob  thb  tkab  khdid  with  80th  junk,  1867. 

^ From  ^ 

Passengers,         Goods  Telegraph 

Railway.                                                Ac.       and  Minerals,  and  Sand ries.  Total. 

East  Indian £557,611      £1,488,290  £111,888      £2,167,184 

Great  Indian  PeDiosaU 828,880        1,078,811  19,469  1,417,16» 

slsilriis 168,875            289,929  16,282  465,686 

Bi)mbay,BarodA  aod  Caoiral  India.   186,646           226,118  22,066  483,726 

*<:»"ie 16,067              96,225  111,292 

J'crjiub 84,869              66,977  91,846 

Kiaiern  Bengal 61,666             71,608  7,088  140,367 

Uude  and  RohilkuDd* 2,640                   120  2,660 

(rreat  doathern  of  India 27,863             27,584  1 ,460  66,868 


Total .* £1,876,812      £8,820,607      £177.698      £4,876,112 

The  working  expenses  and  maintenance  of  the  Indian  lines  absorbed 
more  tban  half  the  gross  receipts ;  in  England,  the  corresponding 
charges  are  very  appreciably  less  than  one-half  of  the  receipts.  The  total 
expeodilure  of  the  Indian  companies  amounted  to  £2,638,000  leaving 
£'2,337,000  as  net  receipts. 

KZPIMDXTCRB  AHD    HXT    KBOHPTS  07  INDXAIf  RAILWAYS     roa    THB  TIAE    SMDID  WITS 

THB  80th  or  JUNB,  1867. 


-Bxpenditare.- 


Wo  Hog  Net 

R*ilwaj.                                           Expeneus.    Mainte nance.      Total.  Receipts. 

Eaatlnuian : £r82.897      £201,644      £984,441  £1,172,698 

Oreat  ladiao  Peoinsttla 624,823         169,792         784,116  688,046 

^s.lraa 187,7  H           66,806         204,629  261.0B7 

Bombij.Baroda  aod  Central  India.     288,311          76,836        809,647  124,078 

Scinde 89,186  22,166 

Pwjiub 71,3  4  20,682 

EiM#ro  Bengal 64,111           14,247          68,868  71,999 

^ude  aod  RoUilkondf 1,160            .    ...             1,160  1,60* 

Great  i^utbera  of  Iniii 19,936            6,167           26,112  80,240 

Total       £1,853.481      £523,881    £2,687,812  £2,387,800 

Mr.  Danvers  has  instituted  a  rather  minute  comparison  of  receipts  and 
expenditure  per  train  mile  of  the  Indian  lines  with  those  of  Great  Britain 


*Por  nine  weeka  only,  tIz,,  from  9th  April. 
tFor  nine  weeka  only. 


160  TBB  RAILWAT8  OF  XKDiA.  [5«p(mier, 

and  the  Grand  Trunk  Line  of  Canada.  We  place  the  receipts  and  the 
expenses  in  juxtaposition  after  the  namea  of  a  few  lines,  by  waj  of  iQu- 
tration,  thus :  East  Indian,  8s.  3d. — 3s.  6d.;  Great  Indian  Peninsult,  lOb 
9d. — 68.;  Madras,  ^9.  Id. — 8s.  Id.;  Bombay,  Baroda  and  Central  hu^* 
lis.— 7s.  4d.  The  railways  of  Great  BriUin  in  1865,  58.  l|a.— 3a.  6i; 
and  the  Grand  Trunk  of  Canada  in  1866,  5s.  7^.— 4s.  The  Indian  bear 
oomparison  with  the  British  lines,  but  their  eoonomic  plight  would  be 
wretched  indeed  if  they  approached  the  condition  of  the  €rreat  Canadiu 
company.  The  price  of  fuel  seriously  affects  the  cost  of  the  locomotiTf 
departments  of  the  various  companies.  In  the  East  Indian  the  locomo* 
tive  expenditure  per  train  mile  was  Is.  3^.;  in  the  Great  Indian  Pemo' 
sula  it  was  2s.  C}d.;  in  the  Bombay  and  Baroda  it  was  2s.  3|d.;  and  in 
the  Madras  Is.  1^.  It  is  officially  stated  that  ^with  regard  to  wood 
fuel,  measures  have  been  taken  by  the  government  for  planting  aod  pre- 
serving forests  for  the  purpose.  With  respect  to  coal,  an  sbos* 
dant  supply  is  obtained  in  Bengal;  but  the  beds  in  Central  India  have  sot 
yet  been  made  available  for  railway  purposes,  access  to  them  having  been 
delayed  by  the  tardy  operations  of  the  Great  Indian  Peninsula  Railwaj.*' 
But  little  insight  of  these  lines  is  needed  to  discover  how  much  tbeir 
prosperity  is  dependent  on  the  price  of  fuel.  The  line  last  named  paid 
5l8.  a  ton  for  coal ;  the  cost  in  England  being  £27,418,  the  freight,  i^" 
amounting  to  nearly  four  times  that  sum,  namely,  £08,708;  coke,  62i  a 
ton ;  and  patent  fuel,  54s.  a  ton ;  and  these  are  not  the  highest  figure^ 
quoted.  The  Madraa  lines  are  as  dependent  on  England  for  coal  as  the 
companies  in  Western  India.  The  lower  expenditure  of  the  Madras  "*  ii 
partly  due  to  the  more  general  use  of  wood,  but  partly  also  to  the  econo' 
micai  system  of  management,  which  reflects  credit  on  the  railway  aotbor* 
ities  in  the  Madras  presidency." 

Perhaps  no  better  evidence  is  wanted  of  the  general  success  of  Indiaa 
railways  than  that  afforded  by  the  large  sum  recouped  the  governmeot 
for  guaranteed  interest.  The  whole  sum  which  has  been  p  lid  by  goren- 
ment  under  its  guarantee  now  amounts  to  £22,212,500,  of  which  aboot 
£0,500,000  has  been  recovered  from  the  companies,  leaving  somethii^ 
above  £12,000,000  as  their  present  debt,  and  which  is  chargeable  agiuost 
the  half  of  their  surplus  proOts  over  5  per  cent.  The  interest  advanced 
to  the  companies  in  1867  was  £3,238,000;  almost  all  of  this  was  paid  in 
England. 

We  conclude  with  a  passage  that  may  be  profitably  conned  by  railvaj 
directors  in  England.  '*One  great  advantage  of  the  guarantee  SJ^ 
tern,"  observes  Mr.  Danvers,  *^  is  that  it  provides  effectual  means  for  keep- 
ing the  capital  and  revenue  accounts  perfectly  distinct.  Every  sixpence 
which  is  advanced  by  the  government  for  interest  on  the  capital,  bodi 


1869]  THB  ANTIOIPATBD   MONSTART  STBINGBNCT.  167 

before  and  after  the  lines  are  opened,  is  charged  against  revenue.  An 
account  is  kept  of  the  sums  so  advanced,  and  the  government  is  reim- 
barsed,  under  the  ternas  of  the  contracts,  out  of  the  profits  of  the  railways. 
Roles  have,  moreover,  been  laid  down  for  the  guidance  of  those  who  have 
to  make  up  and  examine  the  half  yearly  revenue  accounts.  True  and 
real  profits  are  carefully  defined,  and  it  is  shown  how  they  are  to  be  ascer- 
taioed."  By  these  means  the  confusion  between  capital  and  revenue 
accounts  is  rendered  impossible. 


*0*^*0t0^^*^*^*0*0*^t0^^^m»m0^0m^m0*^t^^0t^^^t^^ 


THE  ANTICIPATED  MONETART  STRINGENCY. 

The  general  report  has  been  in  circulation  that  we  shall  have  a  very 
close  money  market  during  the  fall  months,  and  an  apprehension  of  strin- 
gency, whether  well  founded  or  not,ha8  no  doubt  exerted  a  beneficial 
iofluence  in  developing  caution,  stimulating  foresight,  and  checking  the 
disposition  to  speculation  and  overtrading.  When  the  fall  trade  opens 
there  will  thus  be  a  more  substantial  basis  for  it  to  build  itself  upon, 
and  if  the  fears  of  monetary  stringency  should  be  dissipated,  then  the 
movements  of  business  during  the  autumn  will  be  likely  to  be  all  the 
more  vigorous.  It  is  no  wonder  then  that  the  interest  attaching  to 
the  prospects  of  the  fall  trade  should  give  great  importance  to  the 
monetary  question,  and  that  the  future  of  the  loan  market  is  discussed 
with  great  anxiety  by  a  larger  class  of  persons  than  usual. 

There  are  two  or  three  points  involved  in  this  discussion  to  which  it 
viil  be  wftll  to  direct  our  attention  if  we  would  avoid  error.  The  first 
is  as  to  the  movement  of  the  currency.  The  South  and  West  have  for 
some  time  past  been  absorbing  greenbacks,  and  of  the  amount  which 
went  hence  to  the  interior  last  full  80  millions  at  least  did  not  fiow 
back  again,  as  usual  during  the  spring  and  summer.  This  absorption  is 
of  course,  equivalent  to  a  contraction  of  the  currency  to  the  extent  of  30 
millions,  and  hence  arose  a  part  of  the  forces  which  have  given  a  down- 
ward turn  to  the  price  of  gold  at  the  Stock  Exchanije.  Now  it  is  pre- 
dicted by  persons  who  ought  to  know,  and  whose  experience  gives  weight 
to  their  opinion,  that  the  South  will  this  season  repeat  the  process  of 
absorption,  and  that  of  the  greenbacks  and  national  bank  notes  shipped 
thither,  from  15  to  25  millions  will  never  be  seen  in  the  North  again 
until  they  come  up  as  worn-out  mutilated  notes  for  redemption.  How 
far  this  expected  depletion  and  derangement  in  the  movements  of  the 
currency  may  be  correct,  and  if  correct  to  what  extent  it  may  dis- 
turb the  money  market,  are  matters  well  worthy  of  consideration.  We 
^re  inclined  to  think,  however,  that  the  influx  of  gold  into  the  reserve 


166  TBI   ANTICIPATKD  MOKETART  BTBINOBVCT.  [StpUmbn^ 

funds  of  the  banks,  and   the  50  millions  of  three  per  cent  certificates 
which  are  held  bj  the  banks  as  reserve,  so  as  to  set  free  50  milliou  of 
currency,  will  more  than   counterbalance   any  distnrbing  inflaences  that 
may   arise  from    causes    such    as  those    to  which    we  hare  referDn!. 
Besides   this,  Mr.  Boutwell   is  alive  to  the  mischief  which  arises  from 
the  locking  up  of  currency  in  the  Tieasury.    We  have  the  assurance  that 
he  will  not  allow  trouble  to  invade  the   money  market  through  any  mis- 
management in  that  respect.    And  experience  shows  that  so  long  as  the 
Treasury   is   not    a  cause    of   monetary  stringency,  the    other  causes 
which  tend   to  produce  it  will  soon  spend  their  force.    On   the  whole, 
therefore,  the  monetary  outlook,  so  far  as  regards  the  movements  of  the 
currency,  is  not  unpromising. 

Nor  is  this  view  of  things  darkened  if  we  look  at  the  supply  of  capital 
seeking  investment.  From  causes,  some  of  which  are  very  obvioos,  the 
accumulation  of  capital  in  all  our  great  monetary  centres  baa  been  going 
forward  of  late  with  almost  unexampled  rapidity.  It  is  true  that 
capital  is  too  mucb  concentrated,  and  is  held  in  few  hands.  But  this 
very  circumstance  is  favorable  to  the  availability  of  the  capital  for  the 
purposes  of  the  loan  market,  and  tends  to  make  money  easy.  We  hare^ 
however,  to  make  allowance  for  the  rapidity  with  which  in  all  parts  of 
the  country  floating  capital  is  assuming  fixed  forms.  But  this  phenomenoti 
always  accompanies  the  rapid  increase  of  capital  to  which  we  have  pointed 
and  indicates  the  presence  of  confidence  to  embark  that  capital  in  u^nl 
enterprises. 

Here,  then,  we  see  before  us  for  our  fall  trade  the  three  grand  con- 
ditions of  an  easy  money  market :  We  have  abundance  of  capital 
seeking  investment,  we  have  adequate  confidence  among  those  who  otrn 
that  capital  and  are  willing  to  lend  and  use  it,  and  thirdly,  we  apprehend 
in  the  currency  no  sudden  contraction  or  spasmodic  movement  such  as 
would  be  likely  to  trouble  the  monetary  equilibrium.  It  is  true  the  Nev 
York  bank  deposits  are  lower  than  for  several  years  past,  but  this  arises 
in  part  from  changes  in  the  methods  Oi  doing  business  among  the  couo- 
try  banks  which  used  to  keep  large  deposits  here-— changes  some  of  which 
have  had  their  rise  in  the  monetary  stringency  of  the  past  six  or  ei^ht 
months.  We  may  safely  infer,  therefore,  with  a  large  number  of 
the  shrewdest  men  in  Wall  street,  that  if  there  should  be  no  artificial 
tampering  with  the  money  market  we  shall  have  no  such  stringency  this 
fall  nor  any  such  monetary  spasma  as  would  be  likely  to  disturb  business. 
In  confirmation  of  these  views  we  copy  the  following  opinion  of  a  broker 
who  is  one  of  the  best  authorities  on  such  subjects  in  Wall  street: 

**  The  trade  with  the  ioterior/'  he  lays,  "and  especially  with  the  Soath,  is  ratb«r 
backward,  when  the  improved  fioaDcial  posiUoD  of  that  eeetioo  ia  oonaidered.    This  i* 


1869]  TBS   COAL   QUSBTIOK.  161> 

possibly  doe,  in  tome  degree,  to  the  oataral  cbftDges  wrougbt  by  the  extennioD  of 
railroads  nod  telegrapbi,  vbicb  bsTe  to  a  great  ejteot  aoDihilated  time  and  dietance. 
Tbe  mercbaDts  of  remote  seetiooa  can  now  wait  until  the  repnlts  of  the  hftrvest  give 
them  ictimatioDs  whether  or  not  to  make  lar^e  porcbaeee,  with  the  certaioty  of 
tiodiDg  readj  pales  at  home.  Bot  as  Kood  crops  are  aesured*  there  seems  to  be 
Lo  leasro  to  doubt  (bat  aoy  pieseot  shortcomiDer,  with  regard  to  the  general  tra'le, 
viil  be  amply  compensated  as  tbe  season  adyaoces.  7  he  only  drawback  that  appears 
ii)  in  relation  to  tbe  c<>ure  of  the  fall  money  market,  but  fr  m  the  present  aspect  of 
afi^irs  noseriouB  financial  disturbance  seems  probable.  Tbe  prospeciive  drain  of 
correney  to  the  Sooth  and  West,  for  crop  and  trade  purposes,  is  likely  to  be  at  least 
parlially  offset  ly  goremment  disbursements  on  account  of  bond  parchises,  in  accord- 
auce  with  tbe  nnden-tood  policy  of  the  Secretary  of  the  Treasury.  At  present  indi- 
cations are  in  favor  ^f  a  steady  trade  movement  during  the  autnmn  months,  and  a 
result  far  more  satisfactory  than  last  year,  when  boeiness  was  seriously  interrupted 
by  an  excited  political  campaign,  may  be  expected.  Still  much  depends  on  the 
miTf-me  .ta  of  the  money  market.  If  monetary  ease  prevails  the  best  results  are  to 
be  anticipated. ' 


^^»^^^f0^^m^t0m0^^^0^^^^0^0^^^r^^*^^^^^m^^0m^^^^^ 


THE  COIL  QUESTION. 

Br  J.  C.  Batles. 

Messrs.  Horatio  Seymour,  A.  G.  Stevens  and  Robert  Haddin^,  a  com- 
mittee appointed  at  a  recent  meeting  of  the  citizens  of  Buffalo  to  memo- 
rialize CoDf^ess  on  the  coal  question,  have  lately  submitted  a  report 
embodjing  tbe  results  of  their  inquiries  and  observations  on  this  import' 
ant  subject,  which  presents  many  facls  of  interest  and  value  that  are 
deserving  of  especial  notice.  In  this  document  it  is  stated  that  the  aver- 
age cost  of  all  the  coals  mined  in  Great  Britain  in  1854  *;vas  $115  per 
ton  at  tbe  mouth  of  the  pit.  In  1859  the  lowest  estimate  of  cost  in  the 
anthracite  region  of  Pennsylvania,  including  all  expenses  of  machinery 
and  repairs,  was  about  65  cents  per  ton,  and  the  highest  seldom  reached 
§1.  Tbe  report  further  states  that,  up  to  1859,  anthracite  coal  wa«  never 
?old  for  more  than  $4  per  ton,  which  was  above  the  general  average  for 
several  years.  From  1856  to  1861  the  wholesale  range  in  Philadelphia 
and  New  York  was  from  td  19  to  $4  50,  and  it  ordinarily  varied  but  little 
from  %^  50.  When  the  inflation  began,  the  price  of  coal  rose  to  |6  50  in 
August,  1863,  and  to  $10  75  in  August,  1864.  Since  then  the  value  of 
anthraciti'  has  fluctuated  considerably,  falling  as  low  as  $4  50  in  May  last, 
and  again  rising  within  the  past  few  weeks  as  high  as  $10  75.  These 
ftcts  are  signiflcant. 

Under  ordinary  circumstanees,  the  question  of  how  to  obtain  an  abund- 
ant supply  of  coal  at  fair  prices,  important  to  all  classes  of  the  community 
alike,  would  resolve  itself  into  a  simple  question  of  labor  and  transporta* 
tion  ;  io  other  words,  how  cheaply  it  can  be  mined  and  distributed.  This 
i^  true  in  the  present  instance ,  but  before  we  are  likely  to  have  the  difli- 
cuhirs  growing  out  of  these  important  questions  satisfactorily  adjusted,  it 
will  be  necessary  that  the  existing  combinations  betwpen  mining  and  car- 
ryinof  coTipanies  be  broken  up.  This  can  only  be  effected  through  com- 
petition.    As  long  as  we  are  dependent  for  our  fuel  on  one  locality  of  very 


170  THB  ooAL  QUBSiiov.  [September, 

limited  extent,  from  which   the  largest  possible  yield  cannot  verj  modi 
exceed   the   immediate  demands  of  consumers,  co-operation  between  tbe 
various  interests  involved  will  be  possible  and  indeed  inevitable.    This 
fact  is  fully  appreciated  by  the  miners,  as  well  as  the  operators,  of  tbe 
anihracite  basin,  and  to  this  dangerous  knowledge  the  present  diffi  'ulty 
between  the  workmen   and   employers  at  the  mines  is  in  a  great  degree 
attributable.    The  case  is  simply  this :     Knowing  that  the  PennsjlvftDia 
companies  control  the  only  source  from  which  anthracite  can  be  obtainedf 
the  miners  demand,  first,  such  a  share  of  the  profits  of  the  business  as  tbey 
may  at  any  time  see  fit  to  ask ;  second,  the  right  to  cut  off  the  whole 
supply  of  coal  and  all  employment  of  the  capital  invested  in  miniog 
operations  whenever  ihey  please,  and  until  consumers  are  forced  to  ptj 
such   prices   as  may   suit   the    miners.      Added   to   these   nnreasooable 
demands,  there  is  also  the  reserved  privilege  of  using  force  to  prevent  the 
employment  of  those  who  may  be  willing  to  work   on  other  terms  tUi 
those  prescribed  by  the  miners'  unions.     It  is  evident  that  no  sach  condi* 
tions  as   those  demanded  in   the  **  basis**  can   be  accepted   by  the  comps- 
nies.     Whatever  may  be  the  terms  of  the  compromise  agreed  upon,  the 
miners  must  eventually  abandon  their  position.  In  order  to  be  in  hariuonj 
with,  the  interests  of  labor  must  be  subservient  to,  the  interests  of  ca}itaL 
Labor  in  this  department  of  industry  is  and  always  will  be  abundant 
There  are  skilled  miners  in  many  parts  of  the  United  States  besides  Peno- 
sjlvania,  and  England,  Wales,  France,  Belgium  and  China  can  furnish  as 
many  as  may  be  needt^d.     The  proposition  to  import  a  large  force  of 
Coolies  is  now  under  consideration,  and  it  is  probable  the  scheme  will  be 
carried  into  effect   before   very   long.     Many  of  the  collieries   are  now 
standing  idle  that,  if  steadily  operated,  would  materially  increase  the  supplj 
of  coal  now  annually  put  upon  the  market.      This  would  no  doubt  have 
some  influence  in  lowering  the  pricQ  of  fuel,  but  we  have  but  little  r«;8S0Q 
to  believe  that  the  adoption  of  such  a  course  wo^ild  prove  of  much  perma* 
sent  benefit  to  the  great  mass  of  consumers  throughout  the  country. 

While  the  immediate  cause  of  the  present  high  price  of  coal  is  the 
Rtrike  on  the  pait  of  the  miners,  it  is  equally  true  that  the  question  of  labor 
is  of  set.'ondary  importance,  and  that  the  temporary  adjustment  of  the 
diflSculty  which  assumes  a  new  phase  each  year,  would  not  bringdown  the 
price  of  anthracite  to  the  lowest  figure  at  which  it  could  be  protitablv  sold 
to  the  consumer.  The  oal  business  is  at  present  practically  controlled  by 
four  or  five  great  transportation  companies,  who  own  and  op  rate  maoy  of 
the  mines,  beside  possessing  the  only  avenues  of  communication  with  the 
markets;  which  enables  them  to  manage  those  owned  by  individuals  and 
corporations  otherwise  independent.  The  greatest  of  the  carry  in jjci>tn- 
panics  is  the  Reading  Railroad,  which  has  almost  a  monopoly  of  the  coil 


18G9]  THS  COAL  QUKSnON.  l7l 

transportation  from  the  Subuylkill  region  to  Philadelphia,  and  carried  >n 
18G3  about  3,600,000  ton?,  besides  the  anioimt  shipped  by  the  Suhnylkill 
Canal,  which  is  controlled  bj  the  railroad  company,  amounting  to  about 
one  million  tons  during  the  same  period.  From  the  Lehigh  district  there 
are  two  rival  carFiers — the  Lehigh  Coal  and  Navigation  Company  and  the 
Lehii^li  Valley  Railroad ;  the  former  owning  the  Lehigh  Canal  to  Easton 
and  leasing  the  Delaware  Division  Ganal  from  that  point  to  Philadelphia  r 
and  the  latter  having  a  road  from  the  VVyoming  Valley  to  Easton,  with 
branches  to.other  important  points.  From  the  Wyoming  mines  there  are 
three  coal  routes:  the  Delaware  and  fiudson  Canal,  which  last  year  car* 
ried  some  1,640,000  tons  of  anthineite;  the  Delaware,  Lacka  wan  a  and 
Wes^tern  Railroad  carrying  1,700,000  ions  in  1868;  and  the  Pennsylvania 
Coal  Company,  a  New  York  corporal ii>n,  owning  a  road  from  Pittston  to 
tiie  Delaware  and  Hudeon  Canal  at  11  twley,  and  connecting  with  the  Erie 
Railway.  In  1868  this  company  carried  about  050,008  tons  to  the  New 
York  market.  It  cannot  be  claimed  that  there  is  any  combination  between 
the^e  carrying  companies  against  the  interests  of  consumers;  but  the  rela. 
tioas  existing  between  the  mining  and  carrying  companies  are  so  close 
and  intimate  that  the  results  are  practically  the  same.  As  the  leading 
transportation  companies  generally  represent  the  entire  capital  invested  in 
coal  mining  operations,  no  one  but  (he  consumer  has  reason  to  complain 
at  a  charge  of  two  and  a-ha^f  or  three  cents  a  mile  per  ton  for  carrying 
coal  to  market,  when  it  is  an  admitted  fact  that  it  could  be  carried  profit- 
ably for  one  and  a-half  cents.  A  single  exception  to  this  i»  found  in  the 
case  of  the  Reading  Railroad,  which  is  complained  of  by  ihe  operators  as 
charging  a  tariflfof  prices  that  absorbs  nearly  the  whole  profits  of  the  trade 
of  the  Schuylkill  region.  These  few  facta  are  all  that  are  needed  to  show 
that  although  there  exists  a  rivalry  between  the  carrying  companies,  the 
competiuon  is  not  of  a  kind  to  result  in  benefit  to  the  consumer. 

A  correspondent  of  the  Uvening  Post,  whose  letters  from  the  anthra- 
cite region  evince  a  thorough  knowledge  of  the  subject  of  which  he 
treats,  estimates  the  carrying  capacity  of  the  five  companies  supplying 
the  New  York  market  from  the  Wyoming  and  Leghigh  Valleys,  at 
10,000,000  tons  annually,  if  fully  and  constantly  employed.  This 
amount  is  greater  than  could  be  sold  at  a  wholesale  price  of  five 
dollars  per  ton.  The  same  authority  states  that  the  Reading  R-iilroad 
and  Schuylkill  Canal  could  bring  six  millions  tons  more  to  Philadelphia; 
and  that  the  various  railroads  and  canals  to  the  interior  could  distribute 
three  mil  lion  more;  so  that  with  existing  facilities,  nearly  19,000,000 
tons  coald  be  distributed  annually.  With  this  abundant  supply,  which 
would  not  be  in  excess  of  the  producing  capacity  of  the  mines,  coal 
could  be  aold  by  the  cargo  at  $4.85  per  ton  and  then  yield  a  handsome 


^t  THS  COAL  QVimoK.  {SepUmkr 

profit  to  all  viho  were  interested  in  mining  or  handling  it.  Under  these 
cireumBtances  the  highest  retail  price  would  not  exceed  six  ddUn  per 
ton.  The  disproportion  between  these  figures  and  the  prices  now 
charged  shows  that  there  is  a  wrong  somewhere,  and  it  is  reasonable  to 
infer  that  it  is  not  to  the  interest  of  the  producing  and  carrjing  com- 
panies to  right  it. 

It  is  probable,  however,  that  the  true  solution  of  the  coal  qoestion 
will  soon  be  found  in  the  establishment  of  an  active  coropelition  with  tb« 
anthracite  interests  of  Pennsjivania.  Fortunately,  we  are  not  depeodeic 
on  any  one  locality  for  our  supply  of  available  mineral  fuel.  An  ares  cf 
more  than  two  hundred  thousand  square  mile  of  our  territory  is  known  t^ 
be  covered  with  bituminous  coal,  and  as  this  is  nearly  forty  times  u 
great  as  the  entire  coal  deposits  of  Great  Britain,  the  supply  may  be  con- 
sidered practically  inexhaustible.  These  deposits  are  found  in  Marrlasd, 
Virginia,  Western  Pennsylvania,  Ohio,  Missouri  and  many  other  sectioL« 
of  the  country,  and  even  the  least  of  them  are  considered  aufficiendv 
large  to  supply  any  local  demand  that  is  likely  to  arise.  Of  thes^ 
almost  boundless  coal  fields,  the  most  convenient  to  New  York  ani 
the  Eastern  markets,  are  the  Cumberland  deposits  of  Mar} land  art: 
Virginin,  where  mines  are  now  actively  worked  by  the  Baltimore  as  1 
Ohio  Company.  The  retail  price  of  this  coal  in  the  New  York  marktt 
is  about  17  60  per  ton,  and  although  less  convenient  for  general  ni€ 
than  Anthracite,  can  be  burned  in  moat  ranges,  furnaces  and  stotef, 
as  well  as  in  grates.  The  trade  in  this  coal  has  fairly  doubled  within  the 
past  five  years,  and  in  1868  over  1,300,000  tons  were  sent  s^ 
market.  If  the  price  of  Anthracite  does  not  fall  before  cold  weather, :: 
is  probable  that  the  demand  for  bituminons  coal  will  be  largeir 
increased,  and  as  it  can  be  mined  cheaper  than  Anthracite,  may  at  c:) 
distant  day  supercede  it  for  general  use.  Should  the  demand  exceed 
the  supply  obtainable  from  the  Cumberland  region,  the  bituroioou' 
deposits  of  Western  Pennsylvania  could  easily  make  up  the  deficieocj. 
There  is  another  source  besides  those  enumerated  to  which  the  peof^ 
of  the  Northern  and  Enstern  States  are  now  turning  their  attention,  acd 
where  it  is  hoped  not  only  to  obtain  an  abundant  supply  of  cbe:r 
fuel,  but  also  to  find  the  only  permanent  remedy  for  the  presect 
and  prospective  disorders  of  our  mining  interests;  the  mines  of  British 
North  America,  and  especially  of  the  Province  of  Nova  Scotia.  Tit 
prominence  lately  given  to  these  coal  fields  by  the  statements  poi* 
lisbed  concerning  them  in  most  of  the  leading  journals  of  the  UDite-i 
States,  and  the  efifort  now  being  made  to  force  the  repeal  of  the  tarif  c:: 
foreign  coal,  in  order  to  aecure  its  introduction  to  the  American  market 
in  'Competition  with  Pennsylvania  Anthracite,  shows  that  the  eiteot  acJ 


18G9]    '  THB   GOAL  QUX8TI0K.  l78 

qualicj  of  these  deposits  are  not  generally  UDderstoocI,  and  a  few  facts 
respecting  them  naay  be  of  interest  to  our  readers. 

The  only  coal  deposits  of  Nova  Scotia  are  bituminous,  and  the  average 
jield  of  the  veins  already  opened  is  no  better  than  that  no^  mined  in 
the  Cumberland  region.  There  are  but  three  important  coal  fields  in  the 
Pro/ince,  those  of  Glace  Bay,  Sidney  and  Pictou.  The  mines  of  Glace 
Bay  and  its  immediate  neighborhood  yield  an  excellent  quality  of  gas 
coal,  considerable  quantities  of  which  are  now  used  in  the  gas  works 
of  Boston  and  New  York,  mixed  with  Pennsylvania  gas  coals.  The  mines 
of  Sidney  and  Pictou  are  of  less  value,  yielding  only  a  limited  quantity 
and  of  a  much  poorer  quality,  in  no  sense  adapted  to  domestic  use.  As 
the  demand  for  these  coals  is  entirely  local,  and  therefore  limited,  but 
few  veins  are  opened  and  comparatively  little  capital  is  invested  in 
UiiDing  operations.  Should  a  new  demand  arise  it  is  probable  that 
abundant  capital  could  be  obtained  in  the  United  States  for  the  opening 
of  new  veins,  but  under  the  circumstances  we  do  not  see  that  such  a 
demand  is  likely  to  arise,  even  in  case  the  tariff  should  be  repealed  at  the 
Dext  session  of  Congress,  as  it  probably  will  be.  The  lowest  price  at 
nliich  Nova  Scotia  coal  can  now  be  sold  by  the  cargo  at  New  York  is  $9 
[•er  ton,  induding  the  duty  of  $1  26  in  gold.  If  this  duty  were 
repealed,  Nova  Scotia  coal  would  still  be  worth  more  than  Cumber- 
•and  coal.  The  actual  cost  of  mining  in  that  Province  is  $2  per  ton,  and 
of  freight  to  New  York  $3.  This  would  equal  in  value  the  present 
wholesale  price  of  bituminous  coal,  allowing  no  margin  for  profits  to  the 
producer  and  dealer,*or  the  incidental  expenses  of  handling.  Cum- 
Urland  coal  is  now  selling  at  Alexandria  for  (4  15  and  at  New  York 
for  ^6  75,  cheaper  than  Nova  Scotia  coal  could  be  imported  duty  free. 
Considered  practically,  therefore,  and  without  any  reference  to  the  princi- 
[•'t^b  involved,  we  cannot  see  how  the  repeal  of  the  tariflf  would  be  pro- 
■iuciive  of  any  great  benefit  to  the  community.  Evidently  the  movement 
>t:  f:ivor  abolishing  of  the  tariff  arises  from  a  popular  over-estimate  of 
'ivantages  to  be  derived  from  the  competition  thus  opened  with  Penn* 
^ylvania  anthracite.  In  fact,  it  would  seem  as  if  the  only  immediate 
^lutioQ  of  the  coal  question  was  to  be  found  in  the  more  general  use  of 
"ir  own  bituminous  coal,  wherever  it  is  possible  to  substitute  it  for 
aahracite.  It  is  not  likely  that  the  present  prices  of  the  latter  will  long 
•^  sustained,  but  we  have  no  reason  to  hope  that,  as  long  as  the  present 
-iemand  for  it  continues,  it  will  again  fall  to  the  comparatively  low  price 
^vt  wUkh  it  was  sold  in  former  years. 


174  trtK  7DBU0  SIBT.  [StpUwiir, 

THE  FDBLIG  OEBT. 
The  purchase  during  the  last  few  moniha  of  ihirty-Mvan  nuUioosof 
govenimeQt  bonds  by  Mr.  Boutwell,  for  nbich  be  bas  pitid  out  aboutfon*- 
five  milliotia  of  currency,  will  no  doubt  be  fully  vindicated  to  Coogrt^s  in 
part  by  Ibe  provisiona  of  tlie  loan  act  of  Feb.,  I86S,  and  in  part  bj 
the  beneGcent  reaulia  which  bave  been  conferred  oo  the  money  mukM 
and  on  tbe  movementa  of  Gnance  and  bu'iness.  Still,  ande  from  liute 
general  resulla  whii-h  Mr.  Boutnell'a  policy  bu  brougbt  aboot  in  the 
domain  of  commeniial  and  industrial  activity,  there  are  aome  points 
■pecially  aOectJng  (he  debt  itself  which  are  receiving  attention  and  sk 
likely  to  attract  much  diacunsion,  aa  tbe  time  approacbes  for  the  opesiBg 
of  CoDgrfss.  The  first  of  these  questions  r^arda  tbe  Sinking  f>ioi 
and  tbe  desirablenesa  of  ohanging  tbe  establiabed  policy  of  the  Treasnn 
which  for  several  years  Las  been  allowed  to  go  on  witbout  being  cbil- 
lenged  either  by  Congress,  by  the  press,  or  by  the  people.  Wbst  thii 
policy  i»,  will  be  easily  inferred  from  the  aubjoined  statement  of  tLt 
a^regate  principal  and  interest  at  tbe  close  of  each  fiscal  year  sou 
1860: 

anoatng  lit  amount  of  tht  FviUt  DM  A>  1,  1860-188*,  iMhvlM,  wUk  On  IH.'^ 
Uurtim  Antiuil  y,  in  Coin  and  t'aniac!  aito  tht  eanivaU  t  of  OH  loUI,  htt  k  Mi 
and  CwTtnet,  mHiatdd  en  IA4  baiU  qf  t/mntram  pri.i  (jf  Bud  li^  mek  ytr: 
1  oW  debt  ATsnca 

onliUiiiilng  ,— Iiitere>tp«T»blBlii-.priceor  ^Tol«'«    '    '  "■" 


""?.  H 


lata.  . 


Udn     CorwnCT.t    gold.  Cola.       Clirr™! 

■■■ '■»    - -    ■""     ^asi.sn    |iei.'iS| 

I  it'imIsto  »|at|un  lis  s<«a,tMi   iuk-v ' 

r  44.Hii>,N]a  S3.iaH,cn8  mm  eu,8siaM  ts»4.:«  i 

I  M,sii,«UT  8%m,Hii  iM  ui,va,rB  ua.^s^9( 

1  7',>m),»M  TT.iwi,in  i*»  it€,OSi,«M    i^wu::  i 

I  S'.Mi'.iM  48,Hn;SM  iM  m.ni.ni  ib-thib 

)  1J1.IW4.UI  s,7«!,«8]  is>  ita,8n;iu  ixn'^i 

From  these  Enures  it  will  be  seen  that  wnce  the  fiscal  year  dos«d  on  it* 
30lh  of  June,  1806,  we  have  paid  off  186  mil.iooe  of  the  debt,  and  Ime 
reduo'd  the  principal  from  2,783  millions  In  July,  1806,  to  3.o.'~ 
millions  in  July,  18U9.  Id  view  of  this  fact,  the  requirement  of  [ii( ' 
Sinking  Fund  law  may  be  said  to  have  been  abundantly  provided  br.! 
as  tb  >>  1.1W  only  prescribes  that  one-tenth  of  the  outstanding  debt  th*!l 
be  paid  or  bought  up  evpry  year,  provided  that  the  surplaa  coin  reTeca 
from  customs  dutiee  shall  be  large  enough  to  admit  of  such  paymeatJ 
purchase.  If  Mr.  Boutwel!  had  not  bought  a  single  bond  since  tbe  1) 
July  last,  then  tbe  Sinking  Fund  law  would  have  been  fully  com plid 
with,  and   enough  has  already  been  paid  of  the  prindpa)  of  the  debt  i< 


•  IncladlDe  non-lntarMtdcDttndiDKliucddabtoii  wbiuiiuKiicaiuus_«».  

tlnda  ioi;  PuclDc  RillToad  S  hi  cant  lou  bond*,  tU.:    In  ISn,  «>*■»■«■>:  !■  '^ 
«B,I>U,(X»;    &i  IW,  tl^4[R,IX»;  b  lass,  $SI,UD,«iai  and  la  18W.  HB^WM" 


1869]  THB  PI7BLI0   DEBT.  l75 

meet  the  reqniremeiits  of   the  law  for  several    years  to  come.    Th^ 
defence  of  the  recent  Treasury  purchases  of  bonds,  then,  will  have  to  meet 
the  following  objections :    First,  such  purchases  were  not  demanded  by 
the  strict  letter  of  the  Sinking  Fund  law ;   secondly,  the  five-twenty  six 
per  cent  bonds,  which  are  so  rapidly  bought  up  by  the  Secretary,  do  not 
mature  or  fall  due  for  18  years.    In   buying  them  he  actually  increases 
the  public  debt,  as  is  proved  by  the  fact  that  for  every  million  of  bonds 
which  he  cancels  be  has  to  pay  out  nearly  1 1 ,200,000  of  money.    It  is  true 
that  the  income  tax  has  just  yielded  40  millions,  so  that  the  Treasury 
is  full  to  overflowing.    But  the  objectors  inquire  why  Mr.  Boutwell  could 
not  have  cancelled  and  pail  off  more  than  37  millions  of  debt  with  45 
millions  of  surplus  tax  receipts.      We  have  a  vast  aggregate  of  debt 
payable  on  demand.    This   coald  be  reduced  at  par.    Why  not  'pay  off 
part  of  this  demand  debt  instead  of  giving  20  per  [cent  for  the  privilege 
of  redeeming  bonds  eighteen  years  before  maturity)    Such  are  some  of 
the  arguments  used  against  Mr.  Boutwell's  policy.    And  having  detailed 
them,  we  are  bound  to  say  that  that  policy  is  now  regarded  with  more 
favor  than  when  it  was  first  begun,  and  that  many  persons  who  criticised 
it  the  most    severely  are  now  disposed  to  approve  it.     The  relief  it  has 
given  to  the  money  market  is  certainly  the  chief  justification  of  this 
policy ;    and  though  we  are  by  no  means  sure  that  the  relief  might  not 
have  been  given  in  some  other  way,  still  the  success  Mr.  Boutwell  has 
achieved  will  no  doubt  justify  his  continuing  his  purchases  for  another 
month  or  even  more.    Moreover,  if  he   were  to  stop  now,  most  of  the 
benefit  of  his  past  purchases  would  be    lost.    We    do    not    profess    to 
know  how  much  of  weight  Mr.  Boutwell  may  attach  to  these  conflicting 
views,  but  the  general   impression  is,  that  he  is  so  well  satisfied  with  the 
working  and  the  popularity  of  his  plans  that  he  will  not  give  them  up  for 
the  present.   Great  anxiety  prevails  in  Wall  street  to  learn  what  will  really 
be  done,  as  our  hopes  of   an  easy  money  market  and  of  a  good  fall  trade 
depend  largely  on  the  course  the  Treasury  may  adopt  in  this  matter ; 
for,  however  much  we  may  i egret  the  fact,  a  fact  it  undoubtedly  is,  that 
the  money  market  is  under  the  control  of  the  Treasury,  and  works  easy 
or  tight  just  as  Mr.  Boutwell  locks  up  currency  or  pours  it  out  from 
his  vaults. 

If  we  now  leave  the  principal  of  our  national  debt,  «nd  turn  our 
attention  to  the  interest,  we  shall  find  the  yearly  aggregates  very  sug- 
gestive. The  table  we  have  compiled  above  shows  how  much  of  our 
annual  payments  of  interest  have  been  paid  each  year  in  gold  and  in 
greenbacks,  as  well  as  how  much  is  the  equivalent  of  the  total  interest 
when  computed  in  currency.  The  reader  will  thus  see  what  is  the  real 
pressure  of  the  debt  upon  the  resources  of  the  nation.    This  is,  after  all, 

2 


170  TSX  FI80AL  riAs.  [Septmbtr^ 

one  of  the  most  importaot  fiscal  aspects  of  our  national  obUgatiops.  It 
is,  of  course,  gratifjing  to  see  that  the  principal  of  the  debt  is  gndsaUr 
diminishing,  but  the  interest  must  be  paid  to  the  day  whatever  happeu 
while  the  redemption  of  the  principal  is  roluntaiyi  and  depends  npoD  ov 
choice,  and  upon  our  surplus  of  national  taxation,  industrial  grovth  sod 
material  prosperity.  Many  of  our  readers  will  no  doubt  be  sorpriied  to 
find  that  the  interest  aggregates  on  our  public  obligaUons,  computed  in 
coin,  were  larger  last  year,  and  constituted  a  heavier  burden  on  the 
resources  of  the  people  than  at  any  previous  period  in  the  history  of  our 
national  debt.  ^ 


THE  FISCAL  TEAR. 

Last  Wednesday  a  novelty  was  witnessed  at  the  Treasury.  The  gov* 
ernment  advertised  to  buy  two  millions  of  its  bonds  from  the  public  r. 
market  prices,  but  was  unable  to  get  so  many,  and  were  obliged  to  hj 
the  remainder  ($803,000)  on  the  following  day.  Whatever  oUier  reasocs 
may  help  to  account  for  this  unprecedcDted  scarcity,  the  chief  revoa, 
doubtless,  was  that  a  fall  of  d@4  per  cent  had  taken  place,  and  that  the 
holders  of  the  bonds,  in  view  of  the  prosperous  fiscal  report  for  the  p^t 
year,  and  of  the  promising  position  of  the  Treasury  for  the  coming  jetft 
regard  their  bonds  as  worth  more  than  the  current  prices.  The  &c&i 
report  for  the  past  year  is  indeed  very  gratifying.  Instead  of  the  alsn?  i : 
deficit  which  was  so  confidently  predicted,  we  have  a  surplus  of  income, 
amounting  to  about,  60  millions  of  dollars  of  which  45  millions  hiu 
been  gained  under  the  present  administration  from  April  1st  to  Ja» 
SOth.  Three  things  have  conspired  to  give  us  this  large  surplus.  Fin; 
the  internal  revenues  have  been  better  collected ;  secondly,  there  hasbeei 
a  great  saving  made  in  every  department  of  the  administration;  ui 
thirdly,  the  income  tax  has  just  brought  into  the  Treasury  some  40  mil- 
lions of  dollars.  This  last  circumstance  it  is  which  has  enabled  Mr.  Boot- 
well  to  engage  to  purchase  with  his  surplus  currency  on  hand  sii  miJiioo 
of  United  States  bonds  in  June,  nine  millions  in  July  and  ten  millioss 
in  August  It  is  claimed  that  these  government  purchases  may  h^* 
tended  to  deplete  the  supply  on  the  market  so  as  to  give  an  artificial  stimu- 
lus to  the  price.  What  of  truth  there  may  be  io  tMs  conjecture  will  be 
sesn  when  Mr.  Boutwell  ceases  to  buy  and  leaves  the  market  Io  it^^* 
This  may  perhaps  be  next  month,  for  it  is  doubtful  how  hr  his  comocr 
balance,  which  is  now  running  down,  will  justify  the  continuance  d  pof* 
chases  in  the  present  liberal  scale.  However  this  may  be  there  is  no  doal't 
whatever  that  the  improved  credit  of  the  government  at  home  and  abroad^ 
which  b  indicated  in  the  large  advance  and  high  rates  of  our  bonds  daring 


1860]  THK  VXSOAL  TIAR.  l77 

Ibe  past  few  months  are  largely  due  to  the  fiscal  returns  to  which  we  have 
referred.  The  figures  of  this  report  are  stated  as  follows  for  each  of  these 
four  quarters : 

rnXOMD  BTATM  BSTXHUn  AHB  B3CFXV8E8— JXTKS  80,  1860. 

July  1  to  Oct.  1  to  Jan.  1  to  April  1  to  Total  ol 

Sept.  80.  DfC.  81.  March  81.  Jane  80.  flecalyear. 

Ongtoms $49,626»B94  $8ft.9e0,4«8  $49.889,5S4  $44,021,835  $179,998,426 

Internal  taxes 88,786,866  ^.48?,888  83.B9y  537  66,587,674  159,122,249 

Direct  tax 15»536  746,938  8,312  

l^HTr/.. 'n4!886  796,196  1,284,820  1,874,484  4,020,285 

MiaceUaneoxia...  6.950.086  7,832,219  6,706,854  7,968,676  27,752,785 

Total 90,842,868       76^769,201       88,984,067     100,847,619       a70,898[746 

July  1  to  Oct  1  to  Jan.  1  to  Apiil  1  to  Total  ot 

Sept.  80.  Dec  8l.  March  81.  Jnne  80.  Fie.  year* 

nvnecrTlCO $21:2*7,101  $10,910,060  $11,506,895  $18,121,000  $56,824,061 

PeDSlona  and  Ind ^2,858,647  6,048,128  12.183,941  6,928,838  85,519,549 

War  . " »7,219,117  88,918,878  18,710,023  18,65%W7  78,502,4*J 

Navy 6,604J86  6,203,879  8,710,466  4,482,128  20,000,759 

IntSiit.r 88.742.814  86,228,818  88.272.709  27.450,406  180,694,242 

Total $105,152,470     $7i,817.748     $79,884,084     $61,636,844     $821,041^041 

Receipt  orer  ezpenies ••  $49,862,701 

Of  whleh  gidnod In  foorth  quarter,  April  1 10  Jane  80, 1660 46.S11.275 

The  foregoing  statementa  are  very  suggestive.  The  customs  duties  have 
yielded  180  iDillioDS,  against  164  millions  last  year,  170  millions  in 
1867, 179  millions  in  1866,  84  millions  in  1865,  and  102  millions  in  1864. 
The  customs  duties  may  now  be  regarded  as  yielding  an  assured  revenue 
of  160  to  180  millions.  This  sum  could  not  probably  be  increased  with 
advantage.  But  a  due  regard  to  the  public  credit  will  not  allow  it  to  be 
diminished,  for  on  it  we  are  dependent  for  the  means  to  pay  the  interest 
on  our  national  debt. 

In  last  year's  internal  revenue  aggregates,  there  is  a  great  decrease. 
The  amount  was  only  169  millions,  against  191  millions  the  previous 
year,  266  millions  in  1867,  309  millions  in  1866,  209  millions  in  1865. 
109  millions  in  1864,  and  37  millions  in  1863,  which  was  the  first  year 
of  its  collection.  The  falling  off  in  the  internal  revenue  receipts  is  d\i^, 
of  course,  to  the  repeal  of  taxes,  and  the  decrease  would  have  been  much 
more  but  for  the  stringent  and  faithful  collection  of  the  taxes,  especially 
of  those  on  whiskey  and  tobacco,  which  have  been  of  late  enforced  with  a 
precision  and  impartiality  unattained  before  under  our  revenue  system. 
The  general  opinion  seems  to  be,  that  our  internal  revenue  might  with 
advantage  be  still  further  simplified,  and  that  all  the  minute  and  less 
productive  taxes  should  be  swept  from  ibe  statute-book  altogether.  There 
are  not  a  few  persons  who  believe  that  the  income  tax,  the  whiskey  tax, 
and  the  tobacco  tax,  if  faithfully  collected,  would  yield  almost  all  that 
can  safely  be  levied  in  this  country  by  internal  taxes. 

Leaving  this  vexed  question  of  taxation,  however,  it  is  gratifying  to  glance 


178  THS  JUNE   BTATBUIKT   OF  TBI  HATIOKAL  BAKKB.  [SipUaJber^ 

at  the  other  side  of  the  balance  sheet.  Our  navy  has  ooet  20  nuIKou 
against  25  millions  in  1868,81  millions  in  1867,  43  millions  in  ] 866, 
and  122  millions  in  1865.  The  army  cost  last  year  78  millions  agshst 
123  millions  the  previous  year,  and  05  millions  in  1867.  The  citiI  semoe 
cost  us  56  millions  last  year,  and  the  pensions  and  Indians  35  millioDa. 
From  the  lack  of  detail,  these  items  cannot  be  at  present  conveni^ntlj 
compared  with  those  of  previous  years.  We  shall  probably  resume  tbae 
considerations  hereafter.  The  result  of  oar  analysis,  so  fiir  as  it  has  bees 
pursued,  is  amply  sufficient  to  confirm  the  opinion  of  those  who  seein  tke 
high  prices  of  our  government  honds  a  result  of  the  improving  fisol 
strength  of  our  National  Treasury. 


^^^*^i^*^»^*^'^^^a^t»^^^^*0*^^^^^*0^0^0^0^0^^m0*0* 


THE  JUNE  STATEMENTS  OF  THE  NATIONAL  BANUL 

Elsewhere  are  detailed  our  usual  tabular  returns  of  the  National  hacb, 
as  shown  by  the  quarterly  statement  of  12th  of  June.  These  figures  viil 
be  scrutinized  with  unusual  anxiety.  They  show  in  one  view  the  conditioc 
of  the  National  ban\s  at  the  doee  of  the  severest  and  most  prolongs 
period  of  financial  stringency  on  record.  It  will  be  u^fnl  to  oompsTC 
this  report  with  that  made  on  the  17th  of  April,  in  the  early  part  of  ih» 
monetary  trouble.  Two  principal  points  offer  themselves  for  specui 
inquiry.  The  first  regards  the  deposits  of  the  banks,  and  the  other  tber 
reserves ;  but  both  alike  have  to  do  with  the  strength  of  the  bisks 
themselves  and  the  general  stability  of  our  financial  system. 

With  regard  to  the  bank  deposits,  we  find  that  their  aggregate  amovnts 
to  $574,367,388,  being  about  twenty-seven  millions  more  than  in  AprJ. 
These  cwenty*seven  millions  represent  the  accumulation  of  idle  capita 
which  usually  finds  its  way  into  the  banks  and  lending  institutions  dons; 
the  summer.  This  accumulation  will  be  less  this  year  than  usual,  k: 
several  reasons.  First,  the  South  has  absorbed,  and  is  still  absorbicf. 
immense  amounts  of  floating  capital,  part  of  which  would  otherwise  beca 
deposit  in  Northern  banks.  Secondly,  there  is  an  unusual  expendiiurt 
going  on  in  every  part  of  the  country  for  improvements  of  various  kinds. 
Both  these  causes  tend  to  use  up  floating  capital  and  to  diminish  by  co:^ 
sequence  the  deposits  of  such  funds  in  bank.  A  third  caosOi  tending  i& 
the  same  direction,  may  be  found  in  the  depression  of  business  which 
during  the  last  six  months  has  impoverished  large  multitades  of  the 
dealers  in  our  banks,  and  has  prevented  their  keeping  their  balaDce:^ 
as  large  as  formerly.  This  fact  is  in  part  modified,  however,  bj 
the  results  of  speculation  which  have  made  a  few  persons  and  specnlatire 
cliques  enormously  rich  at  the  expense  of  impoverishment  to  legitimste 
business.    The  large  balances  which  some  of  these  parties  can  a£brJ 


1869]  THS  BRIS  OkSAIs  AND   THE   RAILROADS.  1?9 

to  keep  in  bank  produce  some  of  those  severe  spasmodic  move* 
ments  of  deposits  which  have  played  a  prominent  part  in  the  manipu- 
lation of  the  money  market  since  last  New  Yearns  day.  Here,  too, 
we  see  one  of  the  serious  dangers  of  the  financial  situation.  The  banks 
are  liable  at  critical  moments  to  be  seriously  incommoded  by  the  maneau- 
vers  of  the  tight  money  cliques  who  have  on  deposit  prodigious  sums 
^hich  can  at  any  time  be  checked  for  at  sight.  What  remedy  can  be 
applied  to  avert  this  notorious  danger  does  not  as  yet  appear.  The  banks 
owe  it  however  to  themselves  to  take  some  appropriate  action.  They 
enjoy  their  privileges,  not  only  for  their  own  profit,  but  for  the  conveni- 
ence of  business,  and  that  they  may  supply  a  financial  machinery  whicb 
shall  work  smoothly  without  spasms  or  jerks.  If  our  existing  national 
banks  cannot  give  us  such  a  machinery,  Congress  will  be  called  upon 
to  interpose.  It  is  better,  therefore,  that  the  banks  should  exert  them- 
selves and  correct  this  evil  before  it  goes  any  further.  Several  plans  for 
combined  action  have  keen  proposed,  but  the  necessity  for  some  action  is 
imminent. 

The  second  point  relative  to  the  strength  of  our  banking  system,  which 
is  suggested  by  the  statement  before  us,  has  reference  to  their  reserves. 
Here  the  public  will  be  glad  to  see  a  decided  improvement.  We  have 
repeatedly  called  in  question  the  propriety  of  that  provision  of  the  law 
which  allows  the  banks  to  hold  interest-bearing  securities  of  various  kinds 
as  part  of  their  reserve.  Waiving  this  objection,  however,  the  151  mil- 
lions of  reserve  which  they  hold  against  733  millions  of  demand  liabilities, 
gives  a  larger  per  centage  than  that  of  the  proceeding  statement.  It  will 
indeed  be  a  fortunate  thing  for  the  country  if  the  banks  determine  to  pro- 
tect themselves  against  the  possible  financial  troubles  of  the  autumn 
months  by  increasing  considerably  their  reserve  funds,  and  especially  that 
part  of  them  which  is  held  in  greenbacks.  Scarcely  any  policy  which  the 
banks  could  propose  for  themselves  would  have  so  salutary  an  influence, 
or  would  tend  so  surely  to  prevent  the  incipient  movements  towards  a 
financial  panic. 

In  other  respects  the  returns  before  us  offer  few  changes  of  importance. 
The  only  point  requiring  notice  is  that  the  government  deposits  remain  at 
about  the  same  level  as  in  April,  so  that  the  reports  are  incorrect  which 
ascribed  in  part  the  late  stringency  in  the  money  market  to  the  sudden 
withdrawal  of  these  deposits  from  the  banks. 


f^0^^^^^t^r^0*0^^^f^  M^*^v^^^^fe^m 


THE  iSRIfi  GlNiL  ASD  THE  RAILROADS. 

Some  weeks  8.go  iu  treating  of  land  and  water  transportation  for  agricul- 
tural products,  we  urged  the  importance  of  a  reduction  of  rates  to  the 


180  THS  VEIX   OAKAL  AHD   THS   RAXUtOAlM.  [SepUmltT^ 

lowest  possible  limit  and  the  abandonmeDt  of  restriciioiiB  local  or  other- 
wise upon  internal  traffic  There  then  appeared  to  be  an  nnusoal  iiitere^ 
on  this  subject  among  commercial  men,  shippers  to  the  seaboard^  aU 
along  the  lakes  and  the  canals  to  the  Mississippi.  Committees  were  seot 
out  to  consult  with  the  merchants  of  the  lake  ports,  and  there  seemed  to 
be  an  understanding  that  the  local  rates  should  be  uniformly  reduced  sod 
then  maintained  at  the  reduced  figure.  We  do  not  understand  that  this 
arrangement  has  been  carried  out.  Had  it  been,  the  charge  per  ton  on 
wheat  from  Chicago  to  this  city  would  have  been  reduced  from  $9  64 
to  $6  98,  and  on  corn  from  $9  06  to  $6  51,  leaving  the  State  tolk 
unchanged.  There  was  a  strong  hope  that  the  canal  tolls  would  also  be 
reduced.  The  prominent  canal  men  of  the  State  fayored  the  redaction. 
The  Governor  spoke  encouragingly  with  regard  to  it  Still  no  change 
was  made.  Local  charges  for  handling,  shoveling,  elevating,  &&,  were 
reduced  at  Buffalo,  however,  from  some  2i  cents  to  about  oae-fo!irth  of  that 
amount.  But  the  ports  at  the  West,  to  whose  charges  exception  hsd 
been  taken,  made  no  reduction,  or  if  they  did  the  change  was  temporary, 
or  rather  in  the  way  of  mutual  competition,  than  for  the  sake  of  com- 
pliance with  any  uniform  rule  applicable  alike  to  canal  and  lake  ports. 
Of  course  so  far  as  the  Western  cities  were  concerned,  they  had  less  interest 
in  the  reduction  of  charges  than  the  canal  ports  of  this  State.  With 
rates  as  high  as  they  had  been,  the  railroad  was  likely  to  come  in  as  a 
successful  competitor,  but  the  lake  ports  would  lose  only  such  grain  as 
would  avoid  the  water  routes  entirely  by  taking  the  cars  at  interior 
ports  directly  for  the  East.  These  lake  ports,  with  their  great  facilities  for 
receiving  and  shipping  grain,  would  continue  to  gather  the  crop  largely  to 
them,  and  once  there,  it  was  of  little  importance  to  them  what  route  it 
would  take  in  seeking  the  sea  board ;  that  would  be  determined  by  the 
rate  of  transportation.  Their  real  interest  in  the  reduction  proposed 
along  the  line,  was  simply  to  govern  the  direction  of  the  trade,  and  to 
bring  to  them  such  portions  of  tho  crop  as  oscillated  between  the  solicita. 
tion  of  the  lake  ports  and  other  interior  shipping  points. 

The  natural  result  of  these  continued  high  rates  by  water  is  seen  in 
the  successful  competition  of  the  railroad  from  Buffalo  to  the  sea  board, 
with  the  Erie  Canal.  Within  the  past  two  weeks  the  railroad  maaagers 
placed  their  charges  on  grain  from  Buffalo  to  New  York  at  25c  per  100 
lbs.,  or,  for  wheat  15c  a  bushel,  for  corn  14o,  for  oats  8c,  and  for  flour 
60c  per  barrel.  The  canal  charges  were  for  wheat  14c  a  bushel,  far 
corn  12c,  for  oats  7^c,  and  for  flour  48c  per  barrel.  By  railroad  this  pro- 
duce would  be  brought  in  three  days ;  by  canal  twentj  days  would  be 
required.  The  shipper  has  his  return  in  the  first  case  so  much  quicker 
than  in  the  last,  that  the  minute  difference  in  the  rate  would  hardly  be 


1669]  CHIOAOO  AHD  KORTHWSfllTESK  KAXLWAT.  181 

an  object  worthy  of  consideration.  Now  it  is  to  be  noticed  here  that  of 
the  canal  charges  about  one-half  are  for  tolls.  Wheat  pays  about  6c  a 
busheL  The  other  articles  pay  in  like  proportion.  Is  it  not  then  easy 
to  see  that  interest  and  profit  alike  demand  a  large  redaction  of  these 
tolls!  Experience  must  certainly  soon  teach  that,  and  also  the  further 
lesson  that  the  canal  facilitieB  of  this  State  need  enlargement.  As  wc 
remarked  a  few  weeks  since,  as  little  as  possible  should  be  taken  from  the 
producer  and  consumer  for  transportation  charges  for  the  whole  country 
reaps  the  benefit  of  any  reduction  in  these  rates.  Besides,  the  present 
canal  tolls  are  actually  a  discrimination  in  favor  of  railroads,  and  at  this 
very  time  they  are  taken  advantage  of  by  the  shrewd  men  who  control 
the  railroad  interests. 


^*^t^»^t^^0^0^^^0^0^0^f^ 


CmCAeO  ASD  NOSTHWESTEIN  KilLWAI. 

The  annaal  report  of  the  Chicacro  and  North westem  Railway  Company 
for  the  fiscal  year  ending  May  81,  1869,  has  just  been  published,  and 
taken  as  a  whole,  must  be  cousidered  the  most  favorable  report  yet  issued. 
The  gross  earnings  of  the  roaJ,  on  a  mileage  nearly  the  same  as  in  the 
previous  year,  show  the  important  increase  of  $1,326,496,  while  the  per 
centage  of  operating  expenses  to  earnings  is  only  56.84  per  cent  (taxes 
iDcluded),  against  62.42  per  cent  in  1667-8.  The  result  of  the  eco'iomy 
of  operations  will  more  fully  appear  by  a  comparison  of  th^  gross  and  net 
esroings  for  the  last  two  years,  as  follows: 

Groifl  earnings.       Net  earnlni^. 

For  the  year  ending  Xay  81, 1868 $19,614,849  46         |9,S62.8ri2  51 

ror  the  year  ending  May  81, 1660. 18,941,843  19  8,566,070  S6 

Amoont  of  Increase $1,826,496  73         $1,S08.707  T5 

PueenUigeorincreaee 10  53-100  60  9-10 

Liberal  outlays  have  been  made  during  the  year  for  permanent  improve. 
Rients  and  equipment;  the  funded  debt  has  been  decreased  1783,000,  part 
of  which  was  by  the  payment  of  bonds  in  cash ;  two  dividends  of  5  per 
cent  each  in  cash  have  been  declared  and  paid  (the  latter  June  30,  1860); 
and  the  balance  of  4281,T7l  remains  on  hand  to  be  carried  to  the 
incoiue  account  of  next  year.  Details'  of  the  new  issues  of  stock,  and 
the  several  changes  which  have  taken  place  in  the  funded  debt  are  given 
at  length  below.  It  is  to  be  noticed  that  the  Directors  of  the  Northwest- 
em  Company  have  pursued  the  policy  of  giving  full  information  to  their 
stockholders  of  all  its  affairs — the  weekly  and  monthly  earnings  of  the 
road  are  promptly  issued,  as  also  its  annual  report  at  the  close  of  the 
fiscal  year,  and  inquiries  made  at  the  office  of  the  Company  ar^  cour- 
teously answered^    This  policy  has  the  natural  efftct  of  inspiring  cocfi- 


182  CHIOAQO  AUD  H0RTHW£8TXRK  RAILWAY.  [S^pUmher, 

dence  among  dealers  in  iU  stock,  and  makes  the  ^'Northwest"  GommoiL 
and  Preferred  especial  favorites  at  the  New  York  Stock  £zchaiige.    Sioea 
the  close  of  the  fiscal  year  the  Company  has  beeu  called  upon  to  Ument 
the  death  of  its  distinguished  President,  Mr.  Henry   Keep,  to  vboss 
great  energy  and   ability  the  success  of  the  Northwectem  Company  is 
largely  due.     Mr.  Keep  was  considered  by  many  persons  as,  without 
exception,  the  ablest  railroad  man  in  this  country,  and  by  all,  his  extra- 
ordinary talents  were  fully  acknowledged.      The  highest  eulogy  which 
can  be  pronounced  upon  him  as  a  business  man,  is  to  say  that  he  man- 
aved  the  properties  committed  to  his  car«  with  great  integrity  and  always 
for  the  benefit  of  the  stockholders  interested.     Without  taking  a  romaatk 
view  of  the  subject,  it  may  truly  be  said,  that  there  are  hundreds  of  persons 
of  limited  means  in  this  country,  who  bless  the  memory  of  Mr.  Heory 
Keep,  as  the  man  to  whom   thej  are  indebted  for  an   income,  out  of 
property  which  was  once  considered  almost  worthless. 

The  lines  of  railroad  owned,  leased  and  operated  by  th«  Chioago  asd 
Northwestern  Railway  Campany  at  the^  termination  of  ks  fiscal  year,  end- 
ing May  81, 1869,  were  as  follows: 

WlSCOXBllf  DlYieiQH ^    8U.6Bfl«k 

Chicago,  III.,  to  Port  fioivard.  Wis »«.S 

Keaosba,  W)B.toBocklbid»Bi 'a.4 

Galxzca  DiyiBiON SSl.O    ** 

ChliM^o  in.,  toJC.  bankof  Xl8BlH"ippi(opp^CUiiton,Ia) 18T.0 

Junction  (80  m.W. Chicago)  to  Freeportlll 91.0 

El«;in(43m.N.W.  Chicago)  10  Blehmonia^ 111 88^0 

Iowa  Diyzbioh  (Uased  Urns) 8S4.0    ** 

Bridge,B.  bankof  Mis8is8pp1,in.  to  CUnlon^Ia 1.1 

Cbirago,  Iowa  and  Nebraska  RR.— Clinton  to  Ceda'  Hapide,  la....      81.8 
Cedar  Rapide  and  MlBSonri  HiyerBK.— Cedur  Rapids  toMiaaoari  Klver   sn.S 

Hadibor  DivisiOH 67.9     ** 

BclTidere,  111.,  08  m.  W.  Chicago)  to  MadiBOo,  Wia 07.8 

rSNISdX7I.A  Dl'VIBION 9.S     ** 

Rscanaba,  Mich.,  to  CleTeland  HincB,  Mich ^ 67.9 

KrancheBasdEztenBionstoiDlueB 6.9 

MILW.AVKSX  DiTiBioH— Chicago,  IU.,  to  Milwaukee,  Wis 85.0    ** 

Total  length  of  railway  owned,  leased  and  operated,  1,156  miles;  second 
track,  30  miles,  and  sidings  (in  Chicago  a7.6,  aod  on  lines  144J)  181.7 
miles ;  gauge,  4  feet  8^  inches. 

The  stock  of  locomotive  and  cars  on  hand  at  the  date  of  oonsolidslioo, 
and  at  the  termination  (May  31)  of  each  subsequent  vear  are  as  follows: 

June  1/64.  :8fi&  ISIiS.  1887.  ISOB.  ]d». 

(iBtdafB M       1S3  18»  908  9M      fW 

LocoxnotlTeB^SdclapB&iBwitchingB.. 98        81  83  44  44      4» 

( Total  nnmber ^ 289      184  179  947  9«8     S5 

Description  and  nnmber  of  cars : 

(iBtchiBB  ...«. 71         79       108.      119      118      15 

PaBBeoger-iSa  claaa IB        15        91        91       U      » 

(Total 88         94       194       188      19      1% 

Cabooee  and  way .79        83        09       117      187     Jg 

Baggego,  mail  and  ezprees 70        75        68      101      1U7     11^ 

JSoarduig 9         4        4        4 

fBox  ^.  1,899  9,0rO  9,930  8.554  WO    «£ 

Hatfoxm 868  611  787  901  ?M      » 

Freight     Cattle 180  109  907  8-7  397     811 

Coal ,...•• 58  68  68  «  J?.iJ 

.TolAl 9,480  9,TJ8  8,997  4,815  4,W    i«J 

Ironore 814  899  SW  5g  JJ 

ToUlofaUcarB.....„ „  ..  ...„. 9»C55  8;»9  8,867  BJB68  6»7tt  8^ 


1 860]  CHIOAOO   AND    KORTHWKSTERK  KAILWAT,  183 

BEVSNUE,   EARNINQSy  EXPEKSBS,   BTO» 

The  following  statement  exhibits  the  sources  and  amount  of  revenue, 
and  the  objects  of  disbursement,  in  each  of  the  our  years  ending  May 
.31,  1869: 


1P65-6.         lsm-1,         1987-8.  W68-9. 

Pi«»engereinilBg8 |«,510,7/r    $2,91S.m6    |3,593,a31  $8,99C',998 

r-.:-iii            "        6,398,191       6,649,589      8,26«,809  9,291,478 

KipFes*           •*        167,157         846,016         464.406  816,164 

M.h                   ••        77,0«)         124.485         172,605  176,959 

iixeUim'B       "        105,108           86,687         187,994  166,74^ 

Total  grofls  eanlDgft $3,243,840  $10,161,786  $13,614,816  $18,^1,343 

Operating  expenses $5,079,959    $6,784,265    $7,488,484  $7,507,540 

r.  S.  uzesonevrniii^s.. 200,lf>9         107,611          89,245  99,711 

I .  S.  reyeooo  BtampB 4,514            6,680            6,159  4,915 

&Mle  and  county  UxcB 249,489         266,428         289,764  819,859 

Toul  oper'nf?  expends  A  taxes $5,697,08$   $7,103,993   $7,873,646  $7,924,519 

n  rnmi?R  lew  erpenBC9 $2,716,758    $3,057,749    $4,741,199  $6,016,828 

1  r;>en.  toearD'gi»(excrTeoftaxe8> 81.54pc«    66.17  p.C.      69.86 p.C.  53.85p.c. 

.  .^e^toeirniiun 6.60            8.74               8.06  2.99 

Kxpeo.  to  earn.  OnclWe  of  taxes) 67.04          69.91           6343  66.84 

The  following  is  a  statement  of  the  gross  earnings  monthly  for  the  same 
Tears: 

1867-8.  1868-9. 

^^19 $747,949       $925,9a3       |88.3,663  $1,180,932 

iy .        702,t9l         ^08,523         888,214  1,076,673 

t 767,5C8         797,474      1,06:3,236  1,2M,<»40 

mbcr k 9 946,707      1.000,085      1,44m,91«  1,507,47* 

OHober : 9:^2,689      1,200,215       1,541,056  1,570,066 

.Qiotr   754,671       1,010,89J      1,211,630  1,107,083 


I'  ^mber 547,849         71-2,:»fi         879,900       1,001,088 

mrj 623,565         696,146         714,^8^  8:»2,093 


lMI 


K  br.ary 809,917  674,664  807,4T?  830,286 

^:  r.h 62:^844  765,3(«  aVM99  1,142,165 

^.:ru 687,528  774,279  1,094,597  1,112,190 

Ity —  858,948  895,711  l,aU,149  1.268,444 


1685-6. 

1868-7. 

$747,949 

$925,9a3 

702,t9l 

^  08,523 

767,5C8 
946,707 

797,474 

1.000,085 

9:^2,689 

1,200,215 

754.671 

1,0 10,89  J 

547,849 

712,:i58 

623,565 

696,146 

809,917 

674,664 

62:^844 

765,3(« 

687,528 

774,279 

a>S,948 

895,711 

Yearly  earnlagB $8,243,840  $10,161,736  $13,614,846   $18,911,813 

1805-6.  1868-7.          1867-8.  1S6S-9. 

V'lrlyeaTn'gipermnaoperatel $i,917  08  $9,8as  80  $10,937  09  $12,069  9» 

Virjfezptn'0  per  mila  operated 5,978  45  6,918  19       6,296  47  6,bi65  19 

^earyprofliapttTiaaooptrated. 2,933  63  3,975  61       4^110  69  6,204  87 

The  earnings  and  expenses   by  divisions  for  the  years  1867-68  and 
1^08-69  was  as  follows: 

, 1867-8. .    * ^1863-9. v 

Ar  Bfl  Operating  Gross  Operating 

OlviBions.                                                      edrninKS.  expenses,  earning,  exp  nses. 

^^vonsitt ►^ $.J,lftti,05l>  $*MK)9,178  $8,143,69  $1,876,094 

<».l.na ^ 4,298.657  2,482,706  4,62a,85»  2,3^3,008 

■'.VI 8,415.695  2,380,961  4,290.81»4  2,678,536 

"irnon  226.797  153  375  227,883  14'),6t>6 

•    .M.-ala. 445,(23  378,837  634.085  817,785 

^MVittkeo ^ 1,077,617  6d8,6»9  1,122,114  658,440 

Total ^^ ^ $13,614,846     $7,873,646  $18,011,848     $7,931,61» 

INCOME   ACCOUNT — DISPOSITION   OF   REVENUE. 

The  following  table  exhibits  the   nett  receipts  from  earniogs,  and  the 
n:ode  of  their  disbursement  for  the  four  fiscal  years,  as  abo^re : 

1R65-66.      1866-67.      1867-88.      l«68-«» 

^il^nce  from  rrevtous  year $157,6a3     $483,988     $4«»8,224      $20,17^ 

NcltMrniogsinyeax ^ 3,716,766    8,057,749    4,741,199    6,016,829 

Total rMOWCM •*•«. ^11874,300  $3,641,780  $5,209,434  $0,087,39ft 


184  CniOAOO   AND   K0RTHWB8TIBV  KAILWAT.  [S^ltim&r, 

Disbursed  on  tbe  following  accounts  : 

Interest  And  ezchan^  (tneludio^r  interest  ard  dlTi- 
dendfl  on  the  t^'hlc.  and  Milw.  RR.  and  the  Beloit 


and  Mad.  RR.bondaand  btocks ^    i 

Sinking  fUnds 

Chie,  Iowa  A  Nebr,  RR  Rent 
Cedar  R.  &Uo.  R'>t  RR.  rent 
Ditconnt  on  eecarttiea  eold 


94a,'raK  i,9i5,aM  i«84Mn8  i^xmh 

66,190         S9.190         6a.ll0        45,1» 

865«88t       878.411       MIWO      8PQ.SN 

U6M90       866,819       419,848      41S,»Q 

416,789       117,884         

Dividende  on  preferred  stock 447,186       998,000  *1 ,8881190 1  •  cm  m 

Diyidends  on  common  stock •1,486,9801' '♦'"*''^ 

To  al  dtsbarsements $9,890,878  $8,078,606  $6,188,947  $4,18t,6a 

Balance  to  next  year $4S8,968    $468,884     $S0,476  t$l,914,flB8 

Since  tbe  beginniog  of  tbe  last  fiscal  year,  on  tte  1st  of  June,  1668, 
the  funded  debt  bas  been  decreased  to  tbe  extent  of  $783,000,  and  this 
amount,  added  to  tbe  amount  of  $275,000  of  10  per  cent  equipment  bondsi 
paid  off  on  tbe  Ist  of  May,  1868,  as  stated  in  the  last  annual  report,  shows 
a  total  decrease  of  tbe  funded  debt,  in  tbe  last  two  years,  of  $1,058,000. 
Of  this  amount  there  bas  been  paid  off  in  cash — 

10  per  cent  equipment  bonds $885,0^00 

1st  mortgage,  and  Beloit  and  Madison  7  per  cent  bonds 10.000  0) 

$<%>6,OOOC1 
Amount  retired  by  the  oonvfrsion  cf  consollifated  sinklne  ftind,  and  Penlnsola 
bonds,  ana  by  cxchan/![e  of7perceot  equipment  bonds 988,00000 

Total |l,058,0u000 

The  sbare  capital  of  tbe  company  bas  been  increased  during^  the  year 
$337,296,  of  which  $34,486  has  been  an  increase  of  common  stock,  and 
$302,810  an  increase  of  preferred  stock;  all  of  wbicb  has  been  issued  for 
tbe  conversion  of  bonds,  and  in  exchange  for  Beloit  and  Madison,  and  Chi- 
cago and  Milwaukee  Railway  stocks. 

Tbe  condition  of  tbe  company  on  the  Slat  of  May,  1869,  in  respect  to  iU 
stock  and  bonds,  is  as  follows : 

Amount  of  common  stock ....^ $14,590,161  81 

"       **  p  eferred  stock lO^A'ift.OOT  41 

"      **  Douds  as  per  schedule  appended  to  report 17,4M),400liO 

Total  of  stock  and  bond $48,&i8,€59  01 

Three  payments  of  tbe  10  per  cent  equipment  bonds,  issued  September 
1st,  1866,  have  already  been  made  as  tbey  matured,  in  tbe  respective 
amounts  of  $275,000  every  six  months;  and  two  more  of  such  pavroents, 
amounting  together  to  $550,000,  will  accrue  and  be  paid  in  November  and 
May  of  tbe  current  fiscal  year,  ending  with  tbe  3 let  of  May  next. 

No  new  issues  of  bonds  have  been  made  to  re{)]ace  tbe  amount  of 
these  maturing  bonds,  nor  for  any  other  purpose ;  but  iu  view  of  these 
payments,  wbicb  will  materially  decrease  tbe  funded  debt,  and  of  the  large 
expenditures  during  tbe  year  for  additional  equipment  and  permanent 


^  10  per  cent  payable  on  stock.    Ont  of  which  dividend  5  per  cent  ($1,682,835)  was  paid  Jaat 
80, 1869,  l«aviDs  balance  to  income  of  $881,771. 


1869J  OBIOAGO   AVD  K0BTHWX8TERK  RAILWAY.  185 

improvements  before  referred  to,  the  Board  of  Directors  authorized,  on  the 
26th  of  May  last,  the  issue  and  sale  of  fifteen  thousand  shares  of  the  pre- 
ferred stock  of  the  Company — as  an  increase  of  its  capital  — to  be  consum- 
mated  by  th^  delivery  of  the  stock  on  the  1st  of  July,  1869. 

Tht  stock  was  all  disposed  of,  as  of  that  date,  at  its  par  value,  and 
its  ibsue,  vhich  was  subsequent  to  the  close  of  the  last  fiscal  year,  will 
appear  in  the  next  annual  report 

At  the  date  of  the  last  report  there  was  outstanding  of  Chicngo  and 
^lilwaukee  Railway  stock  1 153,400,  and  of  Beloit  and  Madison  Railroad 
>to<-k  $10,000,  not  owned  by  this  company.  These  amounts  have,  during 
ibe  year,  been  reduced  to  $41,090,  and  to  t8,214  respectively,  by  exchanges 
fjr  the  preferred  and  common  stocks  of  this  company;  the  balance  still 
)Qt5taQdmg  of  $49,304,  is  mostly  in  small  amounts,  and  may  be  exchanged 
)D  presentation,  at  the  option  of  the  company,  at  any  time. 

GENERAL  BALANCE  SUEBT. 

The  financial  condition  of  the  Chicago  and  Northwestern  Railway  Com- 
>an7  Mav  31, 1866-69,  four  years,  is  shown  in  the  following  abstrai^t: 

1S66.  1867.  18^8.  1889. 

!ipitAl  stock— eommon $18,147,901  $18,282,403  $14,f56,67S  |t14.nW,161 

—preferred 18,019,065  14,789,185  16,856.287  •l6,«59,0«7 

HjDded  debt ..    14,051,000  16,261,000  16,976,000  15,202,000 

!oid<«ur  leai^ed roads  nar 2,097,000  2,0S8,4(0 

iett  foaliiie  debt 277,160  1,128,476  226,2f»4  8n,«'fi5 

i&lAQce  of  income 483,988  468,224  20,G76  1,914,666 

TotAl $41,006,096   $45,564,822  $49,282,104  $50,771,879 

Per  contra:  the  charges  which  follow — 

Id  conn  Qction $86,079,685  $35,272,614  $89,811,092  $39,92%,6S3 

lew  Dmstroctlo.) I,2!i9,240  1,770,866  2,777,208  8,6<)6,869 

•  w£.}Qpaieot 1,689.985  4,828,399  4,958,809  6,221,400 

ecariucd  on  li%iid    I,9i;9,7n9  2,629,688  6I«,179  848,fi00 

Uteriaifl  on  band .^^ 1,208,626  1,868,168  l,056,7.i8  1,169,578 

Total $11^6.096  $45,864,823  $49,282,104  $60,771,879 

•  STOCKS,  BONDS,  ETC.,  OWNED  B7  OOMPANT. 

The  "  secnrities  on  hand'^  given  as  an  aggregate  in  the  halance  abstracts 
s  above,  are  enumerated  at  large  in  the  following:  summary : 

1866.         1867.         1P68.         1869. 

!t«2d¥ort(Gftl.  AChie.Un1onRB)bdfl $263,om)  $293,000  $284,000  $236,880 

itMo  t.(Ced.KpdBAMo.  Kiy.  KK)bds 27,500 

>t  Mort.  Het    AMad.  RR)bdB ....  ....  ....  ..-. 

terllutf  Biidge  Co'»,  etock 2,0  0        2,000        2,(00        1,800 

^b  &Sioii£  City  R^i  Go's  p'ef.  stock 8,804        8,804  

•Qb.&  Sloax  City  RR  Go's  let  Mort.bds 6,000        6.0(10  

anp^icd  and  Weyaawega  town  bonds 2,100        2,100        2,100        2,100 

roHler  *'FaT0Tire"  Block 10,4P5      10,465  

Dicago  A  Mil.  R  R  Go's  stock 1,274,350  2,018,200  

U,' Trn?t  bond*,  C.  A  N.  W.  Co 4.\000  

')&»•].  ekjr.fd bonds    "       " 50.(0')  

•-DinMi^aRRlAtMo.t.  bocds 143,(K)0  

'^nipmentbonda,  C.  AN.  W  83,000         .  ..  

^biqaeSoahwHsternRR Go's  bonds 4,000        4,000        4,000        4,0CO 

re»n  nay  Transit  Go' B  stock  and  loans ....     874,'iOO         ...  — 

ortb.  ro  Pariflc  RR  »nbscription 11,338      20.000      24,000 

:.  I'aul&ChlcagoRR  1st  Mo/t.  bonds 17,000      17,000 

"      loans 63,579      63,585 

i'e-' ^ and MlUwankre HR bonds ....        1,600        4,0'iO 

m  ua.«st. PeterRRbtockandbonda 830,000     380,000 

aelor  conpona  of  W.  &Bt.  1*.  KR  2dMort.  bonds 77,700 

dvanccd  W.  Zi,  St.  P.  RR.  on  account  of  Mlsiourl  River 

txiu  feion, 82,584 

Tctalsecarities 1,908,709  2,629^6^    629,179     818,000 

*15,C(i0  shares  ot  preferred  stock  since  i-saed  making  the  total  $18,169,097. 


^ 


186 


omoAOO  aud  KOBTHWKnxsir  bailwat.        [S^^kmher, 


The  stock  of  the  Chicago  and  Milwaukee  Railroad  Company,  wbicb 
figures  largely  in  the  returns  for  1865,  '66  and  '67,  has  been  carried  to 
construction  and  so  charged  off.  There  is  still  a  fraction  in  other  hands 
amounting  to  $41  090;  the  total  amount  was  $2,250,000.  Of  thb  BelcHl 
and  Madison  Railroad  Company's  stock  but  $8,214  remains  in  foreign 
hands.  With  these  trifling  exceptions  the  whole  property  of  these  com- 
panies has  been  absorbed  by  the  Chicago  and  Northwestern  Railroad 
Company. 

YUSTDED  AND  OUAKAKTXED  DEBT. 

The  funded  debt  at  the  cloae  of  the  years  1866-69,  both  indusi^e, 
stood  as  follows : 

™        „,      .«  ^      .  1866.  18B7.  1888.  18». 

PlaMTrustSp.c.bonds...  $MS,000     $900,000   $ $ 

PrefTskj:.  ftiBdTp.  c  bonds  (C  *  H.  W.,  198  ^^ 

~i'}iss6 i,«o.ooo    i.«o.ooo  M«.flOO   %wa» 

kded  coupon  7  p.  c.  bonds  (C.  A  N.  W..  IW 

750,000        750,000        7S^QO0       758,000 

8,000,000     8,805,000    8,594,500 

184,000 


m. 


Fanded  coupon  7  p.  c.  bonds  (C.  A  N.  W.,  108 

m.)ie88 

Gen.  iBt  mort.  7 p.  c.  bonds  (O.  *  N.  W.,  lOS 

m.)1885 8,000,000 

Appieton  extension 7 p. c.  bonds (C.  AN.  W.,  88 

m.)li«5 

Green  Bay  extension  7  p.   c.  bonds  (CAN. 

W.,  28  m.)  1885 800,000 

Kqnipment  7 p.  c.  bonds  (0.  AN.  W..)  1S74...        890,000 
1st  mort.  7  p.  c.  bonds  (Q^d.  A  Chic.  U.  RR., 

»49m.)188a 

td  mort.  7  p.  c.  bonds  (Gsl.  A  Obic.  U.  RB  *, 


184,000        184,000       1S4,000 


800,000 
165,000 


[^ 


249m.)lOT5 

MiBS'piRiver  Bri«ige  7  p.  o.  bonds  ^Gal.  A  Cliie. 

U.  KR.    a49m.)l884... 

JQgin  A  State  Line  KR.  purcbase  8  p.  c.  (Gal.  A 

ch'c   U.BR..  249  m.)  1878 .... 

Peninsnla  BK.  Ik t.  mort.  7  p.  c.  bonds,  718  m.) 

ISOd.... 1,200,000     l,0fT5,OCO 

Consol.  fkip.  mnd  7  p. «.  bonds  (0.  A  N.  W., 

800  m.)  1916 2,627,100     8,040.000 

Equipment  10  per  cent  bonds,  1868-71 2,200,000 


1,948,000  1.910,000 

1,282,000  1,178,000 

200,000  200,COO 

189,000  189,0C0 


aro,ooo  800.001 

188^000  lOUOOO 

1,919,000  1,919,000 

1,029,OCO  l,O»,f«0 

200,000  200,000 

180,00}  1S9,OlO 

1,075,000  1,010,000 


8.422  <X)0 
1,925,000 


i,jn,u(« 


Total  ftinded  debt «  $14,061,000  $16,251,000  $16,978,000  $t5.aiB,0» 

The  "  bonds  guaranteed**  by  the  Company  are  as  follows : 

lBtmortffSge7percentbonds(CMc.  AXil.  RR.,  46m  )m4 $3^000 

8d          *•           •*             *♦      (          ♦♦          »•          "      )1870....-» , s;,9ni) 

ad           "            "              "       (tfll.  ACbic.  RR..  4()m.)1874 iSiOW 

8d          *♦           "             "       (          "          "          "      )  18JH 1^5« 

Ist         "           "             "       (0.  AM.  Railway,  85  m)  1898 10W,OOi 

iBt         "           "             ••       (Beloi:AA.ad,RR.,48m.)1888 SilftB 

Bonds  of  leased  roads  guaranteed  by  company $2,082,4W 

MARKST   PRI0B8   OF   COMPANY'S   8TO0K8. 

Statement  of  the  lowest  and  highest  prices  of  the  stocks  of  the  GbicDfo 
and  Northwestern  Railroad  Company  at  New  York  in  each  month  frooi 
June,  1864,  to  the  close  of  the  fiscal  year  ending  May  31,  1869. 


Mor  tbs.  1881-5. 

jQhO 60    ^80 

Jaly 48H(^8 

Au^met 53^S^7X 

September 44^^^ 

October 84    ^48 

I9oveiiber 403<(^47X 

December 88   ^4^ 

January 82    (^iO)s 

Ftbraary 8«K(^7 

HarcU 33    (^i 

April ..   .  ..  91^@855l£ 

M«y S1K<&S8 

Tear 10   ©W 

June,  1889,  TtXm^H ;  JolJi  78X^88. 


MXOH  STOCK. 
2885-6. 

88  &n 

S8 

S8    ^3^^ 

81    &9iH 
38    «£a6X 

87   O^OK 


1888-7. 
80    <^l 

84  (&»:% 


188T-8. 
ai3»@44 

88i<S«7 
41J(Sl8 

86  a^j^ 

80   $84 

ti   ^10 


•a  (»MV 

84  t'^X 

8t  S»ii: 

88   &^h 
81   §»V 

85  dM 


83   ©«X       SSM^SIU^         84X^70       O^K^X 


1869]                           XABIBTTA  AHD   OINOIKNATI  KAILROAD.  187 

TSIVMBBBD  STOCK. 

Months.                                 18M-«.             18(6-8.           1806-7.             1867-8.  1868-9. 

June 88   ®9i)i     68    @Vl          68   miJi  6i<^(g^5l^  Tlk(^"M}^ 

July 84    0^<«        (WX(?^J8          69X(S(i>6t>>i  66    (^19fi  78^r".S4Ji 

AajHist 85ii@^»lX      6eX(twi4           6«    (j>>'Wii  67XC<^71»i  79i<(r/^X 

Septeml)er 77    (?JiS3X     fiO?i(fT.64          65?<(?^r2j^  68    (r?ril«li  SJTiCTrJMili 

October 67Ji(a81         63)i(i]>6»          T2ii^/VSl  64 ^^(^70  88    (?/,08>^ 

Norember 'Iih(f0«>)4     M^m^         mx^i  62^    67K  77i<(^';»>< 

December 6?)J<0>88>»'      61    (TaSSX       6a3ii(r/>843tf  66k(^71>i  75X(frS8>f 

January 61M<?b71?<      68M(^r^«2X       68    6^3  70ii<a76  88i4(fi>^»*i 

Febroaiy 6lMC(>«7>tf      6a>.'(rA56Ji       68Ji(?r«)3tf  73    ©76^  90    (T^^X 

March 48    C?^         6S>^(?ii&7          6«3i(^4(>5)4  7«X(a76j<  89Vfr^.'>a5i 

April 48    <Mn        58)4^/9X       6634(((iW)^  68    «7C3tf  01>t(rr'Jb'M 

aUy ^^Hm^H     66    @81X       66\@*i8>tf  75    ®80K  9651i©H(i>^ 

Tear...    48   (&M)i     U>i(3^69          66X(^84X  68X(^80K  7&5I£®106>; 

June,  1860,98Xei05X ;  Jiay,98)i(&96X. 

Former  notices  of  this  Company  mil  be  found  in  the  Maoazike, 

of  December,  1865,  September,  1867  and  November,  18G8. 


MARIETTA  AOT  CINCINNATI  BAILSOAD  (AS  REORGANIZED.) 

The  original  Marietta  and  Cincinnati  Company  became  insolvent  in 
1857,  and  the  property  passed  into  the  hands  of  a  receiver.  At  that 
date  aboat  tl2.000,000  had  been  expended  on  the  work,  of  which 
83,500,000  was  share  capital,  $6,000,000  mortgage  bonds,  about 
(1,200,000  domestic  bonds,  and  $1,500,000  floating  debt.  On  the 
15th  of  August,  1860,  the  company  was  reorganized  on  a  capital  of 
$8,000,000,  all  the  mortgage  bonds  having  been  surrendered  and  can- 
celled, and  the  old  stock  and  unsecured  debts  wiped  out  by  virtue  of 
foreclosure  and  sale.  Thus  the  new  company  took  the  property  free  from 
all  debts  and  incumbrances,  except  a  loan  of  $200,000  made  by  the 
trustees  for  the  purpose  of  effecting  the  transfer. 

What  is  now  the  Marietta  and  Cincinnati  Railroad  is  roadeup  of  the 
old  line,  which  extended  from  Blanchester  to  Harmer,  and  of  several 
roads  that  were  purchased  by  the  company,  chiefly  with  stock,  soon 
afler  the  reorganization  of  1857.  These  were  the  Hillsboro'  and  Cin- 
cinnati, extending  from  Loveland,  on  the  Little  Miami  Railroad,  to  Hills- 
boro', and  which  now  constitutes  a  portion  of  the  main  line,  and  a  branch 
from  Blanchester  to  Hillsboro';  the  Union  Railroad,  connecting  the  main 
line  with  the  Parkeraburg  branch  of  the  Baltimore  and  Ohio  Railroad, 
which  is  to  be  more  closely  connected  with  that  great  line  by  a  bridge 
over  the  Ohio  river,  now  being  built;  also  the  Scioto  and  Hocking 
Valley  Railroad,  now  called  the  Portsmouth  Branch.  The  scheme  of 
the  work  includes  an  extension  into  Cincinnati,  of  which  about  seven 
and  a  half  miles  still  remain  to  be  constructed.  The  improvements, 
when  perfected,  will  make  up  a  line  of  uniform  gauge  from  Baltimore 
to  Cincinnati,  virtually  under  one  direction,  and  if  in  the  future  the  gau<Te 
of  the  Ohio  and  Mississippi  Railroad  be  changed  from  the  wide  to  the 


168  UAxoTtx  Aim  onrotiTHATi  BATLBOAD.         [Septiwher, 

narrow  gauge,  a  line  from  Baltimore  to  St.  LoaiR  and  West,  m  tin 
Pacific  Railroad  of  Misaouri  and  connections  to  the  cities  of  tbe 
Pacific  Slope  and  Coast  It  is  scarcely  possible  that  those  interested 
in  this  great  project  can  fail  to  perfect  the  plan  thus  la^d  oat,  and  fnnuh 
Baltimore  with  the  means  of  developing  its  natural  share  in  the  0Te^ 
commerce  of  the  continent.  The  extension  into  Cincinnati  will  sl^o 
give  the  road  a  valuable  connection  via  Indianapolis  west  and  north. 
Tbe  lines  of  the  present  company  may  be  described  as  follows: 

■fls 
Mainline:  Hannar  to  Cincinnati,  Hamilton  and  Dajton  Baflroad iX-d 

C  BlancboBtertoHiliBboro. » ^^ *:  j 

Brancheai-tHamdentoPortflinouUi ,.♦ 51.3 

(Soott'i  Landing  to  BeUlro I9 

Total  road  owned  by  company. 131. 

Leased:  Cin.  Ham.  and  Dayton  (Janction  to  Clndnnati) 1 

The  length  of  sidings  and  other  second  tiacks  is  about  22  miles.  Tbe 
iron  ranges  from  66  to  60  lbs,  to  the  yard.  Previous  to  the  oonstrnctka 
of  that  part  of  the  road  west  from  Loveland,  the  company's  tnits 
reached  Cincinnati  via  the  Little  Miami  Bailroad,  for  which  privilege  tbej  < 
payed  t60,000  a  year.  They  now  pay  to  the  Cincinnati,  HamOtoa 
and  Dayton  Company,  for  the  use  of  seven  and  a  half  miles  of  rosi 
$25,000  a  year,  and  to  the  Cincinnati  and  Indiana  Company,  for  the  sse 
of  depot,  &C.,  in  Cincinnati,  15,000  a  year. 

The  company  have  52  locomotives  and  580  cars,  of  which  latter  24  srs 
passenger,  and  ten  baggage,  mail  and  express  the  remainder  being  freiabt 
cars. 

The  mileage  made  by  engines  hauling  trains  in  1868  was  as  fo)Iow«: 
Passenger  trains,  450,760;  freight,  471,880 ;  wood,  &&,  180,760.  asJ 
construction,  87,700 — total,  1,190,600  miles.  The  number  of  passeo^eis 
transported  on  the  lines  was  311,805,  and  the  quantity  of  freight,  32S.^>' 
tons.  It  does  not  appear  that  the  through  business  of  the  lines  is  eiiezi- 
ive,  the  number  of  passenpers  between  Cincinnati,  Harmar  and  Bcipre 
having  been  only  4,419,  and  the  tons  of  freight  only  12,652.  Theearsi&g} 
in  the  same  year  amounted  to  tl,296,867  55,  of  which  $82,206  43  vb 
from  through  passengers,  and  $190,586  01  from  way  passengers.  TbU 
through  business  has  increased  yearly,  and  when  the  termini  are  com- 
pleted, the  prospects  are  favorable  to  a  large  development  of  this  brsfidi 
of  the  business  of  the  line.  The  expenses  of  operating  in  the  same  je^ 
were  $1,117,617  35,  leaving  net  earnings  at  $177,750  20.  This  amonct 
was  not  sufBcient  to  pay  even  the  interest  on  the  company's'  fiist  bood>. 
and  hence  the  debt  of  the  company  was  largely  increased.  In  the  il'I- 
lowing  table  we  give  the  earnings  of  the  road  for  five  years: 


,     HaiL  

^Local.        Thronsh.        Local.       lliroiiflli.  Sxp.  ae.       ABoant 

286i $46M0786    $<XKOOO  00  $466,318  74      fSOU  iO  $s£0BS  SS  ftLtmie  £ 

1806 445«66i6«     147,190  67    sff^TSS  61     1^000  00    6M«»  6S  ^jSiOie  19 

1666 6»1,879,  76     1C8,UF28  SO    41S,974  70  SO.nS  00    7LMT  «     1««14»  (« 

1867 .   67»,8TO46    lS6,6i8  88     87S,686  SB  as,8n  00    7Ma  86     1«S80,SU  C 

1868 696,64099    196,696  qI     m,W4li  S^MU    Tl^M  St    M>M>7» 


1869]  MARIKITA  AND   CtSOlJXSATt  RAILROAD.  1S9 

These  figures  are  scarcely  encouraging,  but  when  the  connections  east 
and  west  are  completed,  there  will,  undoubtedly,  be  a  large  increase  in 
the  annual  receipts.  The  balance  to  the  lo&a  of  the  company  increased 
in  1868  from  $435,685  38  to  $874,373  65,  or,  by  the  large  sum  of 
$438,688  27.  The  financial  status  of  the  company  on  January  1,  1864^, 
and  January  1,  1869  (five  years  apart),  is  shown  in  the  following  abstract 
of  the  general  balance  sheets  of  date : 

1884.  1869  Iscreaee     Decrease 

Shtrefl,  Istprefeneoee $6,445,441  SI  $8,180,710  44  $?,686.877  28 

»•        ad            "        3.48?,ft71  97  4,460,868  28          976.796  26        

**        common « 1,860,000  00  9,039,778  36         179,778  96       


$10,779,014  18  $14,680,866  99     $8,841,851  74 


Bonds,  Isimortftterrflr. $l,000,n00  00  $1,060,000  00  $60,000  00 

"           cnrr'cy.. 609,977  84  9,464,849  51  1,844.36167 

Sdmortoage.. 9^00,000  00  9,600,000  00 

*•       SdotoAH.VaL 8i 0.000  00  800,000  00 

BaltimoreloantoUnlunBaUioad  Co...         90,000  00  90,800  10 


$1^,977  84  $6,834,843  61  $4,694,884  67        

Paj-roUfl $93,46116  $131,408  87  $107,947  71     $ 

Rills  payable  and  casH  borrowed  .....          96,608  95  941,968  18  914,764  18       

Cash  dividend  nnpaid 16.:,478  50  7,468  60  155,010  00 

iDdividnal  accounts 99,630  87  99,630  87       

Profit  and  ]088 849<464  84  843,464  84 

Total $19,963<934  97  $91,431,969  80  $8«461,064  83  TTT^ 

Per  contra,  the  following  assets,  viz.: 

Bailway  and  eqnlpment $9^38,489  19  $11,586,896  19  $9,159,464  00       

Union  R.B.  pnrcha-o 168,608  58  177,916  50  94,807  93        

HiUsboro'  A  Ciocinnati  R.R.  purchase.      1,668,817  57  1,888,796  98  885,479  86       

ttcioto  &  Hocliing  VaUey  B.R.  pnrchase             800,0U0  00  80O,0UO  CO       

Total $11,140,858  84  $14,469,609  69  $8«819,951  28  ^TTT 

Constnict*n--Kainline ...      $590.864  03  $1,740,819  66  $9,149,948  47       

CIn  er 1,83110  1,961,110  8«  1.949,<79  30       

Discount  on  mort.  b*ds. 1,184,86190  1,184,86190       

•692,195  18  $6,136,981  05  $7584,068  87  T" 

Suspense  Acconnt $ $166,000  O')  $166.000  00 

Rcaleitate 10<,544  70  560,268  77  447,719  07       

Bonds  and  stO'*ks r9.965  1»9  53,965  03       

Materia  8  and  inel 10,807  08  105,5*^89  95,233  81        

im.s  recelvab'e 7«»9  84  7,999  84  ..     ., 

Uocollected  revenne 49,950  50  49,950  56       

Cul.  and  Hock  Yal.  n.B. 

subscriptiim P0,000  00  50,000  00       

Profltandloss ......  874,878t5  874,873  66       

Total $19,968,904  97  $91«434AW9  80  $8,46706413 


•»  I  iM 


The  funded  debt  of  the  coaipany,  as  shown  in  the  statement  of  January 
1,  1869,  is  described  as  follows : 

# ^Infereet— ^      Prlneipal  Anioont 

Bate.       Payable.        payible.  ontstandintr* 

Ist  mortjpge,  sterling. 7   Feb.  AAag.    Ang.  1, 1891  $1,U5«  OO^i  OO 

lat  mortgage,  currency 7    Feb.  ^t  Aug.    Aa|t.  1, 1891  9,44»,600  00 

Is  I  mortgage  (scrip),  correney. 7   Feb.  AAug 4,843  51 

9d mortgage,  currency 7    May  &  Nov.    May  1,  IStHt  9,60a,(XM)  OU 

lstmortga«e(s.  AH.Val  R.B.) 7    May  A  Mot.    May  1,  1896  800,000  00 

Bait,  loan  to  union  B.  B.  Co .«^....    6 1870  90,000  00 

The  Stocks  of  this  company  are  almost  without  market  value.  First 
preferenee  shares  have  recently  been  sold  at  20@23,  and  second  pre* 
ferenoe  at  6@8.     The  common  stock  is  not  quoted. 


168 


narrow 


lOMMtA  Airo  owois***^ 


^eo.  / 


\ 

) 


cauge,  a  line  from  BaUimore  to 
Pajreo   Railroad    of   Missouri    and    conaooe* 


^ 


Pacific  Slope  and  Coast.     It  is  scarcely  pc>«^' 
in  this  great  project  can  fail  to  perfect  the  pl/-^ 
Baltimore  with  the  means  of  developing  il| 
commerce  of  the  continent.    The  extef  ^ 
give  the  road  a  valuable  connection  via^  |  | 

The  lines  of  the  present  company  ir  1^  I  '^^  ^.|| 

Main  line  :Harmat  to  Clnclniiati,HMnUtonM»?^  "^     ^  /   | 

BrMicheB:-<Hiunden  to  Portsmouth ^>X' 

"  (aoott'8L*ndin«U)BelAlr6....,(|^5 


>^^ 
^ 


Total  road  owned 
I^eaaed:  Cin.Ham. 


•ft  %■  \ 


.g dings  and  ''^  \\^'^^ 

es  from  66  to  60   |||  jl*^  <^ 
,ait  of   the  ^*Xr%^ 


The  length 
iron  ranges 
of  that  pait 

reached  Cincinnati  via  .^  \  ^ 
payed  $60,000   a  ye,{^i 
and  Dayton  Comp?/'''^l 
$25,000  a  year,  9^^  ^M  . 
of  depot,&c^iDWM^||^ 

Thecompan;  l\\f\ 
passenger,  an',/      *  ^ 

cars. 

The  mi'    ^ 


t'l 


I  ^.  y  ^' 


^ 
^ 


¥. 


if 


9^^ 


uHTA. 


TO    JATAir. 


4    ^ 


I.«W»« 


Passeoge  ,  ^ 

"»•»  ■  ..:;:::;:::::::::::;:;::::::;:v;;..;:;;;::;;;:.v;  'Sg  J? 
tr...r    ••::::-:••:::.■•::::::::.■:•::::■.::;:;::■•::::::;:  ^S  ^. 


tons     

ive 
b 

/«niiaiy>*-**^ 


TO  PANAMA. 


/yehmary 
^jlarch. 


^  April 


jaMaj 
in  Jane 


TO  OKMTRAI.  AXSUOA. 


In  Jannaxy. . . 
In  Febniaxy  . 

In  May 

InJnne 


40,0«Z1 

i«7,oai 


87,718  a 
681,470  e{_ 


flT.m« 


^1,U«» 


•••«« 


TO  YIOTOaU. 

In  January. •• 

T'^talflrei ^, , _-,    ■«, 

Total  first  elx  montlia  1868 »,»;«»' 

Increase  the  year 11,105,^* 


T.^talfl«t»lxmonth8l8» I?i?i5'2| 


COnOK  OULTIVATXON  IN  THX  60T7TB.  191 


^ 


*^ 


^^  ^0»  CULTIVITIOH  W  TIB  80DTH  • 

s%^  *^     '^  ^from  tbe  Commercial  OoDventioo  now  sittiDg 


jr    ■» 


^^  ^    ^        ^  ^ee,  as  memoriatistA,  reprebent  that  we  a^e 

'^  "^  *4^  ^i      "^  "»n  trade  now  carried  on  between  Great 

'&^  ^  ^  <^  ^       "^^  *er0sted  in  ali  ihat  relates  to  the  pro- 

^^^t^jS^"^^      %^  *h  countries. 

)y   ^  *^<%-^    *^  ^      '^  'Off  between  the  two  countries^ 

'^^  %»'  *5*  ^^^    ^  '^  "**^  importance,  render  it 

^4^*^^"'  ^  ^<^  *<j^^  ^  your  memoralistSy  that 

"^^  *fe     ^  ^  '^^••'^j  edition  and  advantages 

<>  %*%\%,\,^%^    "^  in  the  United  Statee, 

*.  .'v  '^V  ^     ^  '\  '**••  ^  ^"-^ti  hy  the  cotton  spinners 

'-'  -f-.-*^  ^V'^..^^^^  a  sufficient  supply  of  the  *'r»w 

r,\  </:/i^*  <^   V  ^. eater  quantity. 

.  <.\,  V  ♦       ^'\.  ^  oiworials  of  the  "Cotton  Supply  Asaocia- 

,''/'>       .    . '  ^  Association  "  and  the  Chamber  of  Commerce 

'/'* "      ♦.. N^/*  ^  ,,0  the  Dake  of  Arg\le,  the  principle  Secretary  of 

council,  urged  a  special  Cotton  Bureau  for  India,  inas- 
oked  to  that  country  for  relief  in  case  of  failure  of  cupply 
'^^  oa. 

«eport  of  the  Cotton  Supply  Association  says;  "There  appears  to 

Aitle  probability  that  the  produ-tion  of  cotton  in  America  will,  for  many 

years  to  come,  be  adequate  to  the  requirements  of  this  and  other  countries; 

your  memoralists,  therefore,  believe  that  India  is  the  great  source  to  which 

they  must  look  for  enlarged  supplies  that  are  so  urgently  needed,^'  etc 

Though  we  hail  with  pleasure  any  exertion  to  increase  the  supply  o^ 
cotton  in  India  and  all  other  countries,  we  can  but  think  that  to  the  South- 
ern States  of  America,  at  last,  must  we  look  for  any  permanent  increase  in 
the  supply  of  tbe  *'  raw  material."  In  East  India,  Egypt,  Algeria,  and  the 
Levant,  as  in  Brazil,  Peru,  and  the  West  Indies,  there  are  many  difficulties 
Attendant  upon  any  permanent  increase  in  the  future  growth  of  cotton,  and 
in  furnishing  such  cotton,  at  a  cheaper  price,  in  sufficient  quantity  to  sup- 
ply the  wants  of  tbe  world. 

Can  these  countries  grow  cotton  at  a  cost  of  sixpence  per  pound?     If 
i\iej  cannot,  then  they  are  unable  to  compete  witli  the  TTnited  States. 


•  HeiDorl%l  to  the  **  Cotton  Bapply  AbsoI  tlon  ol  IfsnoheBter,**  Bngland,  snd  to  the 
''NatiooAl  A  sociaTion  of  Cot  oa  M  nnficta  era  anl  Pianterd"  of  the  United  States,  and 
tkroogh  thcee  AtB^ciaiions  tu  thi»  Cotton  Spiaijere  of  Enroye  sad  Araeiles. 


190  ExpoOT  OT  TRBABURS  moM  BAH  nuKOiBCO.  [S^pfenhr, 

EIPOBT  OF  TRBASUKE  FKOI  Sil  FUICISN. 

The  San  Francisco  Commercial  Eerald  gives  the  following  Blalement 
of  the  amount  and  destination  of  treasure  exported  from  San  Francisco 
during  the  first  six  months  of  1869,  as  declared  at  the  Castom  Home: 

to    KXW  TOIX. 

jSj-jSS ::::::::::::::::::::::::::::;::::::::::::*^S2:S?I 

lQ»»y ....      161.06899 

TO  XNGLIND. 

iSS^ircr^'' ^^:^'^^^.-  ..  "  "  £48m»sm 

}°f«ii    Ill 688,881  n 

!SJ.i•:::::■:■".".^^■■"•■•■••■"■•■••■•■"  ••»«»= 

TO  FmANCI. 
InJanuarj •J&SS  W 

iS?iSre:;;::::....""^ i56.7«09-  kmbs^. 

TO  CHINA. 

T-   T.nnarv « f671,*Wl   SI 

JSjjP™ ::.... 67^188  4i         ^^^ 

SJSi::;:::;::::::::-^•;:::•.:::^..- Ttt,o«»-.  ^w»« 

TO    MPAK. 

InJ.i.>uii7 •• • •iS'lSS 

loFebruiij iMLmn 

InMarch ~ iJe!™  2 

Sj,s;::::::::::::::::.::-:.."^:""'-::" • ■«:««<»-  !.««»« 

TO  PANAMA. 

InJannaiy - ^'OOOM 

laMarcb 60,000  00 

laAprli 4ft  ftjo  no 

ays::::::::::::::::::::::::::::::::".:::.:.::"-""":"""-  ^^^  "^^ 

TO  OINTRAI.  AXSUOA. 

In  January •S'SSS 

InFebrnary bS'JtoS 

iSSte::::::::::::::::::::::::::::::::::::::::::::::::::::::::::  Si:SS5-  «i4i»» 

TO  YIOTOaXA. 

^         9M»» 

InJannary. •*•  

Trttalflritalx  months  1809 ^Sa&4ffl  «S 

Total  first  Blxmontha  1868 ^^*^    ^ 

Increase  the  year •*'*** 


18tiD]  COnOK  CULTIVATION   IN  THE  SOUTH.  IDI 


COTTON  CeLTIV&TIO!!  IX  TIB  SOUTH  * 

We,  a  special  oommittee  from  the  Commercial  Convention  now  aittiqi^ 
in  the  city  of  Memphis,  Tenneseee,  as  memorialists,  represent  that  we  are 
clostrly  connected  with  the  cotton  trade  now  carried  on  between  Great 
Britain  and  America,  and  deeply  interested  in  ail  that  relates  to  the  pro- 
gress, prosperity,  and  commerce  of  both  countries. 

The  extensive  mercantile  relations  existing  between  the  two  countries, 
which  are  every  year  increasing  in  magnitude  and  importance,  render  it 
highly  expedient  and  desirable  in  the  opinion  of  your  memoralists,  that 
more  accurate  information  be  given  respecting  the  condition  and  advantages 
now  atforded  for  increasing  future  ** cotton  supply'^  in  the  United  States, 
inasmuch  as  great  interest  is  now  being  manifested  by  the  cotton  spinners 
hoih  of  Europe  and  America,  respecting  a  sufficient  supply  of  the  *'  raiw 
materia],"  at  a  cheaper  price  and  in  greater  quantity. 

On  the  2d  March,  1869,  the  memorials  of  the  *' Cotton  Supply  Associa- 
tion" the  "Cotton  Spinners  Association," and  the  Chamber  of  Commerce 
ot  Manchester^  England,  to  the  Duke  of  Arg\le,  the  principle  Secretary  of 
Sute  for  India,  In  council,  urged  a  special  Cotton  Bureau  for  India,  inas- 
much as  they  looked  to  that  country  for  relief  in  case  of  failure  of  cupply 
from  America. 

The  report  of  the  Cotton  Supply  Association  says ;  ''  There  appears  to 
be  little  probability  that  the  produ'  tion  of  cotton  in  America  will,  for  many 
years  to  come,  be  adequate  to  the  requirements  of  this  and  other  countries; 
your  memoralists,  therefore,  believe  that  India  is  the  great  source  to  which 
they  must  look  for  enlarged  supplies  that  are  so  urgently  needed,"  etc 

Though  we  hail  with  pleasure  any  exertion  to  increase  the  supply  o^ 
cotton  in  India  and  all  other  countries,  we  can  but  think  that  to  the  South- 
ern States  of  America,  at  last,  must  we  look  for  any  permanent  increase  in 
the  supply  of  the  ^  raw  material.*'  In  East  India,  Egypt,  Algeria,  and  the 
Levant,  as  in  Brazil,  Peru,  and  the  West  Indies,  there  are  many  difficulties 
attendant  upon  any  permanent  increase  in  the  future  growth  of  cotton,  and 
in  furnishing  such  cotton,  at  a  cheaper  price,  in  sufficient  quantity  to  sup- 
ply the  wants  of  the  world. 

Crin  these  countries  grow  cotton  at  a  cost  of  sixpence  per  pound?    If 
•bej  cannot,  then  they  are  unable  to  compete  with  the  United  States. 


*Hemori4l  to  the  **  Cotton  Bapply  Asbo  i  Kon  of  Kanohester,**  Bngland,  and  to  the 
"XatioDal  A  social  inn  of  Cot  on  M  nnficta  crs  ani  Piantera"  of  the  United  StAtef,and 
tkroDgh  thcee  AitwCiations  tv  the  Cotton  SpiaterB  of  JBtao^e  aad  Araeilea. 


192  COTTON   CtLllTATlOH  tH  TBfi  SOCTB.  [StpUmlfTj 

KAftT  INDIA. 

In  Eaft  India  the  difiicuHy  of oltaininpr any  tfmirefo  ihe^oil;  th''  rode 
and  inBufi^cicnt  niears  of  transportation;  tlie  tropical  nature  of  (he  elimatt 
deluging  tfae  land  for  one-half  tlie  jear  i^hh  rain,  and  patching  it  «itb 
drouth  the  oth^r  half,  stamp  it  as  a  dime  but  poorly  sniteii  toth^f^wtli 
of  a  plant  requiring  fo  It  nor  and  fo  regular  a  supply  of  moisture  to  mntnre 
its  fruit— ^al) of  iihieh  luike  agninst  ary  ipeedy  ]Bcrea«6  in'th^  Bop)>]y  «f 
cotton  from  that  country.  Oit  of  16«000,000  acres  annually  apimpnuted 
to  cotton  growing,  the  largest  }ifld  for  exporiation  was  in  1866  (vhfo 
stimulhted  by  high  piicef),  and  did  reach  1,840,648  balea-— ileereasin; ii 
18()7  to  l,5C8.90a  bales,  and  in  1868  to  1,420,576  bales — aremging  34* 
ponnds.  In  tiie  district  of  Orissa  and  in  Etstfrn  Bt^ogal,  when  the  Uri^e 
crop  of  I  66  was  made,  over  l,dr>0,000  souls  peri^hed  from  starrstii«B, 
produ<*ed  from  putting  in  cotton  lands  that  should  have  been  appropriateJ 
ta  breadstttffs.  It  is  now  predicted  that  the  cotftoo  crop  of  East  India  vii] 
atill  further  be  reduced  the  present  }ear — decHningy  perhaps,  lo  1,350^ 
bales. 

XOTPT,   TURSKT,  SMTRKA,  ORSKOB,  XTO. 

Tn  Egypt  a  more  stric.t  system  of  irrigation  is  adhered  to,  and  ^^ 
heavy  expenditures  for  canal  dues,  steam  machinery  and  English  toal 
fur  fuel,  to  raise  water  from  the  Nile,  with  the  high  price  of  cotton  land*, 
joined  to  onerous  taxes  exacted  by  the  Government,  will  discourage,  i''  t 
great  degree,  any  further  increase  iu  cotton  supply.  Besides,  in  ]St»3, 
when  a  large  attempt  at  cotton  growing  was  made,  some  350,000  of  tU 
population  of  Ejypt  perished  from  actual  starvation.  The  yield  thit 
year,  1864-65,  was  404,411  bales,  and  Bince  that  time  has  never  bees 
attained.  Only  193,033  bales  were  imported  into  Great  Biitaio  the  pt&t 
year,  averaging  500  pounds  each. 

Though  the  Viceroy  of  E;rypt  and  the  Sultan  of  Turkey  have  both  bees 
recently  memorialized  by  the  '*Man.  heeter  Cotton  Supply  Association,'* 
respecting  the  future  growth  of  larger  crops  of  cotfon  throughout  tb«ir 
dominions,  the  yield  baa  not  increased  to  any  extent  in  Egrpt,  and  boih 
Turkey  and  Greece  together  only  exported  the  past  year  into  Liverpool 
12,623  bales  of  cotton. 

Smyrna  cut  down  her  fig  and  fruit  trees  in  1804,  for  the  porp<ve  of 
growing  cotton,  but  has  now  abandoned  it,  while  the  rest  of  the  Levant, 
•xcept  for  domesiio  purposes,  has  given  it  up  altige:her. 

BRAZIL,   PBRU   AKD   WXST  IVOIKS. 

South  America  is  steadily  increasing  in  the  production  of  cotton,  bat 
at  slowly  it  does  not  amount  to  muoh.    The  past  year  the  yield  «a 


1869]  COTTOX   CULTITATION  IN   THB   SOUTH.  193 

180,000  baleR  more  than  in  the  jenr  1867.  But,  as  the  bales  in  Brasil 
only  average  lo5  pound",  and  those  in  the  West  Indies  and  Peru  onlj 
180  fronnds,  the  Hctnal  increase  for  the  whole  of  South  America,  reduced 
to  the  American  standard  of  500  pounds  eacli,  dues  not  amount  to  over 
65,000  bales  of  cotlon  for  the  past  year.  This  increase,  liowever,  in  South 
America,  does  not  at«»ne  to  the  cotton  ivorld  for  the  decrease  in  East 
India  llie  pnst  jenr,  which  amounts  to  88,32f  bales  and  compared  with 
1866,  to  420,072  bales,  and  not  as  manj  pounds  of  raw  cotton  were 
imported  into  Great  Britain  in  1868  as  durin|;^  the  year  1866. 

BrMzil  and  Peru  ate  dependent  almost  i^olely  on  irri(;ation  for  the  pro* 
duction  of  their  cotton  crops.  The  Pernambuco,  Maceio,  B<ihia,  and 
Santos  cotton,  so  favorably  known  in  the  European  markets,  are  produced 
by  damminp^  up  the  "  rigullettas,"  or  rivulets  of  melted  snow  that  come 
from  ihe  Cordilleras,  and  thu%  during  the  summer  months,  famishing 
means  of  irrigation,  so  necessary  in  that  arid  climate  to  the  maturity  of 
the  cotton  plant.  But  for  the  terraces  and  irrigating  canals  of  Petu, 
which  convey  the  melted  snows  from  the  Andes,  she  could  not  grow  cot- 
ton at  all — and  even  now  her  crop  is  very  small,  for  that  imported  into 
Liverpool  the  pa5>t  year  amounted  only  to  58,911  bags,  of  180  pounds — 
equivalent  to  a  little  over  21,000  bales  of  500  pounds  each.  While  that 
of  Brazil,  although  it  amounts  to  620,502  bales,  of  155  pounds  each, 
when  reduced  to  500  pound  bales  amounts  to  a  little  over  195,000  bags. 

COMPARATIVB  VALUE   OV   AMERICAN    COTTONS. 

But  America  is  the  home  of  the  cotton  plant,  and  the  Southern  States 
of  America  the  only  country  where  co  ton  can  be  produced  successfully 
and  regnlarlv  without  resorting  to  the  artiBcial  me^ns  of  irrigati6n.  It 
is  to  those  States  that  the  trade  must  then  look  to  furnish  the  deficiency 
in  "  cotton  supply  "  for  the  world. 

American  cottons  are  of  more  general  utility  both  of  warp  and  wo.»r, 
than  thoee  of  other  countries.  In  Europe  they  are  used  almost  excki< 
mely  for  warp,  while  the  filling  is  of  India  or  some  other  less  costly 
cotton.  The  world,  therefore,  requires  noi  only  a  lar£;e  supply,  and  a 
ebesp  8up]>Iy,  of  cotton,  but  a  supply  of  a  peculiar  kind  and  quality. 

There  are,  properly  speaking,  now  in  use  three  kinds  or  classes  of  cot- 
ton. 

1st.  The  '*  Sea  Island,"  or  long  staple  cottons,  grown  principally  on 
the  coasts  of  Florida,  Georgia  and  South  Carolina.  Of  this  denomination 
of  cotton,  comparatively,  the  consumption  is  small. 

2d.  The  medium  long  staple  cottons  of  American  growth,  denominated^ 
in  Liverpcol,  **  Uplands,"  and  '*  New  Orleans;"  in  the  United  States, 
known  as  New  Orleans,  Texas,  Mobile,  Savannah,  Charleston  and  '*  Mem- 


104  COTTOK   CVLTITATIOV  IV  THB  SOUTH.  [Stptmher 

phis  cottons.''  It  is  stated  that  prior  to  the  war,  nine  bags  of 
American  cotton  were  used  to  one  bag  of  aH  other  deacriptioDs  put 
together.  The  American  cottons  are  used  almost  entirely  in  E'jrv>{>ean 
factories  for  warp,  while  the  woof  or  filling  is  of  other  less  costly  ondek 
For  the  warp  or  extended  threads,  strength  and  length  of  6bre  is 
especially  required  ;  while  for  the  weft  or  transverse  threads  ot  the  .oosl, 
softness  and  fulness  are  the  chief  requisites.  No  other  cotton  is  better 
adapted  as  to  strength  and  length,  either  to  spin  into  the  higher  nnmberSfCr 
to  sustain  the  tension  friction  to  which  the  threads  are  exposed  in  the  loom. 

dd.  The  short  staple  cotton — nsed  almost  exclusively  for  weft  or  fillic^ 
It  is  drier,  *'  fuzzier,''  more  like  rough  wool,  and  princiaply  grown  in  lodii. 

It  is,  therefore,  seen  that  while  the  cotton  spinners  of  Europe  reqaire 
only  to  a  limited  extent  the  first  and  third  classes  of  raw  cotton,  viz^  Sea 
Island  and  India  cottons~-of  the  second  class,  or  mediam  staple  oottomi/ 
American  growth,  they  need  and  canoonsume  an  almost  unlimited  supply. 

It  is  the  insufficient  supply  and  the  high  price  of  American  cotton  that 
has  driven  English  manufacturers  upon  the  short  stapled  native  article  of 
India — called  '^  surat."  But  so  beautifully  have  the  manufacturers  redoeed 
the  system  of  mixing  the  two  in  the  fabrics,  that  the  more  American  cottos 
manufactured  in  England,  the  greater  will  be  the  necessity  for  Surrat  cotton; 
and  the  less  American  cotton  that  is  passed  through  British  looms,  the 
smaller  will  be  the  quantity  of  surrat  taken. 

It  must,  therefore,  be  borne  in  mind  that  the  great  desideratum  now  for 
Europe,  is  not  simply  one  of  more  cotton — but  more  cotton  and  at  a  cheaper 
price  of  the  character  and  quality  of  that  grown  in  the  Sonthem  States  of 
America. 

If  India  were  to  send  to  Great  Britain  three  millions  of  bales  of  coltoo 
in  place  of  the  fifteen  hundred  she  now  furnishes,  the  desideratum  woulJ 
not  be  supplied — and  she  would  Etill  be  almost  as  dependant  on  Ameriei 
as  ever.  She  cannot  grow  the  needed  character  of  cotton,  and  the  growtt 
of  British  India  must  continue  to  command  attention  only  when  better 
descriptions  cannot  be  obtained. 

Although  several  quarters  of  the  world  supply  the  long  staple — ^asd 
India  furnishes  enormous  quantities  of  the  short  staple — ^the  United 
States  of  America  have  hitherto  produced  the  mediam  and  most  necet 
sary  kinds,  and  unless  American  production  can  be  stimulated  aad 
increased,  the  cotton  trade  of  the  world  must  suffer  to  an  enonnoas 
extent. 

CONSUMPTION    OF   KNOLAND   AND    AMERICA. 

The  cotton  interests  of  Europe  &nd  America  alone  require  an  anoBsl 
supply  of  over  6,000,000  of  bales  of  cotton  to  keep  their  machinery 
moving — whereas,  the  actual  available  production  of  the  world  will  sot 
amount*  the  present  year,  to  5,000,000  bales. 


1869]  COTTON   CULTIVATION  IN  THB   SOUTH.  195 

Granting  that  East  India  and  the  (Jnited  States  make  full  average 
crops  of  cotton,  the  most  fMVorable  production  cannot  supply  the  defi- 
ciency. 

Say  for  the  crop  of  the  cotton  year  1869 : 

Eist  India,  more  than  last  year • •• 1,600,000 

Egypt,  •<  ••  ...•      28,000 

Turk**/,  Levrnt,  Ae.,      '<  ...» 12,600 

Brasil.  t'era,  and  W^eat  Indies,  eame  as  last  year  .•••. 707,600 

United  States,  mote  than  last  yeir. V^O.OOO 

All  other  sources • •.. • 60,00 

Uaktog  a  liberal  estimate  of 6,000,000 

for  the  production  of  the  world,  while  the  consumption  is  over 
6,000,000,  leaving  the  appirent  deficit  in  supply  in  the  *'raw  material  " 
over  1,000,000  bales  of  cotton,  at  the  end  of  the  present  year. 

ATAILABLB   PRODUCTION   OV  THB   WORLD. 

The  cotton  crop  of  the  world  does  not  now  amount  to  four  millions  of 
balfs,  averaging;  500  pounds,  and  exclusive  of  the  United  States,  the 
avftilable  production  of  the  globe  does  not  much  exceed  eighteen  hundred 
thousand  baUs,  of  the  same  average. 

How  to  supply  this  d<*ficit  is  the  question,  and  how  to  supply  it  with 
the  needed  character  of  cotton. 

Fronj  the  census  of  1860  it  is  ascertained  that  the  cotton  crop  of  the 
United  Stites  for  the  year  1859-00  amounted  to  five  millions  one  hun- 
dred and  ninety  six  thousand  nine  hundred  and  forty-four  bales,  of  400 
pounds  each.  The  same  crop  if  reduced  to  bales  of  500  pounds  each, 
shjws  a  yield  for  that  cotton  year  of  forty-one  hundVed  and  fifty  seven 
thousand  five  hundred  and  fifty  bales — a  larger  quantity  of  cotton  thnn  is 
now  proJuced  on  the  globe.  Since  1861  the  Urgest  yield  was  that  of  the 
past  year,  atnounting  to  twenty.four  hundred  and  thirty  thous^ind  eight 
haodr«fd  and  ninety  three  biles  of  cotton. 

We  have  the  s^ime  soil,  the  sa  ne  peculiar  climate,  influenced  by  the 
Gulf  Stream,  canning  a  regular  system  of  irrigation  from  the  clouds 
wafied  from  the  bosom  of  the  Southern  sea<«,  and  producing  the  moisture 
and  heat  bo  requJHte  during  the  summer  months  to  the  health  and  vitality 
of  the  cottun  plant.  All  the  natural  advuntajres  possessed  by  the  South- 
em  States  for  the  culture  of  their  principal  staple  remain.  But  we  want 
labor, — and  with  an  abundan«!e  of  labor  the  increase  of  cotton  would  not 
only  be  c^mmenRurate  uith  the  wants  of  the  w.jrld,  but  the  co.<t  of  pro 
duction  as  the  iu'Tt^ase  progressed  would  be  lessened  by  an  unerring  law 
govern »m;v  all  trade. 

At  present  it  is  e<ti  nated  that  nearly  one-half  of  the  cleared   lands   of 
tbe  South  are  uncultivated,  for   want  of  labor,  and   therefore   the  cost  at 


196  C01T0K    CULTITATIOV  IN   THE  60CTB.  [Sfptiwkr^ 

wliich  labor  is  now  acquired,  and  colton  produoed,js  di>pro{>ortioiiatdj 
dear. 

AREA    OF   SOUTHERN   COTTON   STATES   ^TC. 

The  area  of  the  ten  largest  cotton-growing  States — North  Cart^lioa, 
South  Carolina,  Gt;orgia,  Florida,  Ala^tama,  MlK»i^6iRsippi,  LoniMana, 
Texao,  Arkansas,  and  Tennessee — is  six  huqdred  and  sixty  six  thau^a&d 
one  hundred  and  ninety  six  Fq'iare  milfS  or  four  hun  r  d  and  iweDij-sx 
luti lions  three  hundred  and  sixty-five  thousand  fviur  hun  tred  and  fortj 
acres.  If  we  add  Mi!>POuri  and  Viririnia,  we  embr.ice  h  teriiton  of  orer 
eight  hundred  thousand  square  miles — alinost  as  lar^e  as  t'le  sggT«>t^ 
area  of  Great  Britain,  Fiance,  i^russia,  Anstria,  and  lialj.  The  single 
cotton  State  of  Texas  is  larger  than  eith(*r  Great  Hntain,  France,  Pi ossia, 
or  laly,  and  nearly  equal  in  area  to  (he  Austrian  £  npire.  SouiheH.^teni 
Mis^-ouri  might,  with  great  propri.  ty,  he  entered  in  tie  list,  a<  the  Bureu 
of  Statistics  at  Washington  now  report  nearly  as  large  an  average  }ieki 
per  acre  from  that  Siate  as  any  other,  thereby  con6rii.ing  the  theory  tiot 
the  '*  Isothermal  lines,*'  or  lines  of  equal  heat,  do  not  corre>)KD<l  witii 
the  parallels  of  latitude,  but  diverge  from  given  points  on  the  Atlantic 
seaboard,  in  a  northwestwardly  dirtciion,  demoi.straMHir  ibe  f^ci  ibat 
Columbia,  in  South  Carolina,  is  not  muidi  warmer,  if  any,  than  New 
Madrid  ill  S>)Uthea8tern  Missouri,  though  two  degrees  fartiierEoalh. 

In  confirmaHon  of  these  scientific  observation.^  the  txpeiienceof  afef 
years  past  has  shown  that  Tennessee,  whirh  was  formerly  si-arcelj  con- 
sidered a  Cotton  State,  nowratiks  hirh  amonor  the  <'oti<»n  producing,  and 
third  among  the  cottpn  receiving.  Stares  ;  and  that  lands  lying  a'ong  ike 
northern  edge  uf  the  cotton  belt  produed  sure  and  stetdy  crops,  bting 
le»s  liable  to  the  **cotton  worm"  and  ihe  ''rot,**  although  the  product  [« 
acre  is  not  so  much  as  further  south. 

PRODUCTION   TO   BB   STIMULATED. 

From  a  region  then  of  such  vast  extent,  what  mi'jht  we  not  expect  if 
tl)ere  were  union  of  effort  amongst  those  interested,  to  i^timuiate  a  Urfor 
production  ?  Practically,  there  i;i  no  limit  to  the  cotton  production  uftnesi 
Sutes. 

If  the  cotton  spinners  of  the  United  S'ates  of  America,  whose  int^resti 
are  identified  with  the  cotton  planters,  who  have  been  fHVurinsr  ra  1*4?  ai»i 
wild  land  speculations  in  the  far  West,  instead  of  turnins;  xh-^  tide  o(  m- 
migration  to  the  open  fields  of  tho  South,  would  now  pursue  a  c<>n:raiT 
course  and  lend  us  their  aid,  the  produ<tion  of  the  *'  raw  niHterial^'coitki 
soon  He  increased.  If  the  "  Nntional  Association  ol  C  »itoii  Manu'sciurera 
and  Planters*'  of  the  United  Slates  would  direct  public  atteutioo  to  d» 
bttlject,  it  would  mateiialy  assist  ua. 


1869  I  COTTON  CUUnTATION  IN  THB  BOUTH.  197 

li  th6  '^Cotton  Supply  Association"  and  the  Cotton  fipinners  Araooia* 
tion/'  of  ManchvBter,  Erigland,  wou'd  induce  a  surplus  portion  of  the  popu- 
iation  of  Gr^at  Britain  and  Europe  to  oome  among  u^  and  assist  in  cultivok 
ting  our  uBDCciipied  cotton  ]<tiids,  then  would  Lancasliire  be  greatly  bene- 
fite<l  and  sa  ed  the  fears  of  future  ** cotton  famine^,'*  with  tiie  CtirUiinty 
of  being  fiirhished  tbe'^'ia^v  materia  "  at  a  cheaper  price  than  it  can  be 
pro<iuced  in  any  other  quarter  of  tlie  globe. 

The  planters  and  the  ryots  of  India  will  not  grow  cotton  except  stima- 
iated  by  ttigh  prices.  The  imperfect  system  of  irria;ation,  the  constant 
deterioration  of  exotic  or  Ameriean  cotton  seed,  necessitating  large  out- 
las  s  annual  for  their  iinportHtion,  the  poor  means  of  transportation,  and 
the  great  difficulty  of  ob'aining.breadstuff^  io  the  interior  of  tiiat  remote 
couniryy  will  det«r  them  from  risking  it  and  increasing  the  production  to 
miicii  extent,  urdess  they  are.  paid  remunerative  prices. 

Tike  lands  of  Egvpt  are  too  valuable  and  the  cultivation  of  the  *^  ^reat 
&t4f>Ie  "  attended  with  too  much  exi)en<%e,  to  grow  cotton  to  any  extent  at 
a  le»s  prire  than  twelve  to  fifteen  pence  per  p  >und.  Tiie  lands  along  the 
h^uh^  of  the  Nile,  suited  to  cotton  growing,  all  comm^jn  1  from  twenty  to 
forty  pounds  sterling  (tlUO  io  $J00  in  goll)  per  acre.  B^sid^s,  the  arable 
land  ill  Egypt  \»  coniined  to  a  very  narrow  strip  along  both  banks  of  the 
Nile,  most  of  which  must  CMitinue  to  be  cultivated  in  cereals  for  the  sup- 
port  of  its  already  overcrowded  population.  The  remainder  of  the  coun- 
try is  but  a  desert  of  burning,  moving  sands — ^the  sport  of  tiie  siaioon  and 
the  home  of  the  strecco. 

VflNNESSBB,   LEVEES,  ETC. 

We  Stand  to-day  upon  the  soil. of  a  cotton  State  worth  more  to  the 
world  than  the  whole  of  S  luth  America  and  the  West  Indies.  The 
Slate  of  Tennessee  is  credited  in  the  last  annual  cotton  statemeat  with 
tliree  hundred  and  seventy /our  thousand  eight  hundred  and  sixtj  bales 
of  cotton,  a^r^ragingover  443  pounds  per  bale. 

The  production  of  Brazil,  reduced  to  the  same  standard  of  443  pounds 
per  bale,  would  give  a  }ield  the  past  cotton  year  of  220,*256  bales;  Pern, 
24,837  bales,  and  the  West  Indies,  8,882  bales,  making  total  crop  for 
ex{K)rtation,  353,477  bales  from  South  America  and  West  Indies.  Kot 
more  than  was  received  by  the  cUy  of  Memphis  the  past  season  ;  for 
Memphis  rec4>ived  the  past  cotton  yeir  25'),207  bales,  and  so  far  this 
season  has  already  received  over  24  ^009  bale^  of  cotton. 

The  Yhz  )0  basin,  in  the  State  of  Mi^sif^ippi,  lying  immediately  south 
of  Tennessee,  bounded  on  the  west  by  the  Minsissippi  river,  and  on  the 
south  and  on  the  east  by  the  Yazo  >,  Tallahatcliie,  and  CoMwater  riveiS| 
cowtn  an  area  of  nearly  four   nulUons  of  acr^i  and  is  worth  more  as  a 


198  COTTOV   CULTITATIOir  IK  THB   SOITTR.  [SfpttmbtT^ 

cotton  countrj  to  tke  world  tbftn  the  ^hole  of  FgjpL  Frnn  thd  Tes* 
Dess:e6  line  to  tbe  rooatb  of  ibe  Yazoo,  nola  stream  enter*  tbe  MissiimppI 
river  for  950  miles  possessing,  in  tbis  respect,  superior  pfajsienl  advsat^ei 
for  easy  and  safe  protection  to^  aaj  other  portion  of  the  KsMMpin 
Valley. 

In  1860  tbe  State  of  Mississippi  produced  1,202,50T  bales  of  eotton; 
and  it  is  estimated  tbat  of  this  amount  nearly  one-fourth  was  prodnesd  in 
tbe  delta  of  tbe  Yaaoo.  Her«  was  the  widest  portion  of  tbe  inland  set 
wbieb  once  occupied  the  lower  valky  of  tbe  Mic^sissippL  Its  exeeedio^ 
fatness  is  Nile* like,  without  the  aridity  ^of  Egypt  Its  soil  resembles*  in 
fineness,  the  siH  of  tho  ocean^s  bed,  and  is  enriched  hy  the  opulence  of 
the  sea  and  tbe  munificenGe  of  the  land  in  the  oead  organisms  of  former 
prolifio  and  vigoroiis  life,  which  furnish  in  abundance  the  lime  and  potssh 
and  other  elements  which  cotton  requires.  It  is  the  most  fertile  s&d 
productive  cotton  domain  on  this  continent,  and  Oangrees  should,  as  ao 
act  of  jttstice  to  tbe  cotton -spinners  of  the  North,  and  to  the  cotloa* 
growers  of  tbe  South,  repair  at  least  the  ''  Yasoo  Pas?,**  and  tbe  portion 
of  the  levees  tbat  were  destroyed  for  milknry  purposes  durinor  the  late 
cirii  war^  With  the  levees  up  and  secure  from  raundaiion^  tbe  saccess- 
ful  cultivation  of  the  Yaaoo  delta  wo*)1d  alone  secure  ann willy  sn 
addition  to  the  American  cotton  crop  of  1,000,009  bales. 

CBEAP  COTTON — IMFROVED  0VLTIVATI0«7,  ETC. 

Cheap  cotton,  then,  and  in  siifficient  supply,  is  what  the  world  reqnires 
and  must  have.  Lancashire  and  the  o  nttnent  of  Earope  must  obtain 
ebeaper  cotton,  or  their  mills  must  stop..  For  tbe  pnst  two  year»  tht^ 
have  paid  for  "American  rokidlings'^  and  "'fair  ^/f^ptians^an  arersg» 
over  ten  pen'^e  per  poond  ;  and  many  mtlts  are  now  closed,  or  workinf 
on  **  short  time,**  ui  eonsequense  of  tbe  continued  higl)  price  of  rav 
cotton. 

With  our  levees  up,  the  freedman  would  seek  tbe  a'luvial  landi  of  tb* 
Mississippi  Valley,  finding  there  a  better  reward  for  hi^  hibor.  T!ie 
climate  agrees  with  him»  and  he  with  the  climate.  With  an  inteUisreot 
white  immigration  settling  upon  the  ^^  iijdand«*^  of  the  cottoa  States ; 
with  smaller  farms  and  improved  seeds ;  with  d*'ep  plowing.  cominerci«) 
manures,  an  enlightened  system  of  cullivation--4}Aing  all  the  appliances 
orimprovcl  husbandry,  and  employing  every  available  means  to  reader 
the  Soil  iiicreasini>ly  product! ve~^we  could  easily  eKteod  the  yi«Idof  the 
Southern  cotton  crops  again  ta  five  millions,  in  place  of  two  millioBs  &ft 
hundred  thousand  bales. 

It   is  estimated  that  Georgia  alone,  the  present   year^  has  consomed 
over  twetity   thousand  tons  of   comtmerciKil  nianures,  ia  giiAOAjs  aad 


ISGO]  COTTON   CULTIVATION   IN  THE   SOUTH.  109 

pbojiphates,  improving  faer  cotton  lands.  The  product  is  doubled  by  it, 
the  cultivation  of  one-half  the  area  is  saved,  and  the  Uborer  has  time  to 
devote  to  the  cereals  and  fruits,  making  life  on  a  cotton  plantation  more 
ai;reeable  to  the  habits  and  tastes  of  the  white  man.  This  revolution  has 
been  inaugurated  by  David  Dickson,  E-q.,  of  Sparta,  Georgia,  who  last 
Tear  invested  thirteen  thousand  dollars  in  commercial  manures  with  great 
profit,  and  who,  in  the  midst  of  his  exten^five  operations,  has  found  time^ 
byjadicious  seleciicns  and  crosses,  to  introduce  the  best  cotton  seed  in 
Afnprica. 

We  commend  this  system  to  the  attention  of  the  cctton  trade,  because 
ih^y  can  sftfely  advise  immigrants  to  come  to  the  healthy  and  well* 
watered  **  uplands^  of  the  South,  with  a  fair  prospect  of  growing  cotton 
successfully,  without  the  constant  drudgery  which  was  once  thought 
necessary  to  its  production,  and  at  the  same  time  surrounding  their  little 
habitations  with  the  luxuries  and  comforts  which  they  have  been  accus- 
tomed to  in  their  Northern  and  European  homes.  For  although  neces- 
nty  may  compel  tho  introduction  of  laborers  from  tbe  half  cii^ilizr;d  Pagan 
r&(V8  of  the  earth,  we  oonf«*8s  we  have  a  strong  preference  for  those  of  a 
hi <4 her  stamp,  and  who  will  ultimately  make  good  citiaens,  merged  into 
our  population. 

CONDITION  OF  LABOR,  KTO. 

There  is  a  ir^eat  mistake  generally  made  in  regard  to  the  amount  of 
labor  now  employed  in  the  cultivation  of  cotton.  When  the  emanisipa* 
tioD  occurred  the  planters  made  great  efforts  to  associate  the  laborers 
toi^ether  on  their  InrgA  plantations,  but  the  system  has  completely  broken 
(lonnand  given  place  to  the  **pqiia<l  system,'*  where  from  two  to  eight 
hanils  only  work  together,  in  ma»'y  instances  a  siiiti;le  f  imily.  The  "squad 
i)st.Mn"oD  lar^e  plantntions  is  much  lesi  produciive  than  the  old  system 
or  ''a<«sociated  labor,**  as  there  is  no  concnrt  of  action  and  fair  division  of 
Ittbor  according  to  the  recognimd  laws  of  political  economy. 

Tlte  freedmaii  is  unambitious  of  accumulation,  but  shows  great  anxiety 
to  iiave  his  little  home,  with  his  i  ors^^,  cow,  and  hogs  separate  and  apart 
from  others.  Thereft»re,  he  strenuously  insists  on  a  full  grain  crop  for 
subsistence  of  his  family  and  stock,  and  only  a  moderate  cotton  crop* 
On  a  majority  of  the  plantations,  in  pr  jecting  the  cotton  crop,  the  fieed 
women  are  entirely  ignored,  and  are  left  to  attend  to  the  household  and 
ihe  i^arden,  except  when  the  season  is  very  difficult,  when  they  give  some 
s'^si^^tance  to  their  husbands  «nd  fathers  in  the  cultivation,  and,  also 
occHMonally  in  ibe  gnlhering  of  the  crop.  This  fact  in  itf^elf  is  sutlicient 
lo  Hceount  in  no  sninll  degree  for  the  dij^appearnnce  of  a  larije  proporlioD 
of  ti.e  efficient  labor  once  directed  especially  to  the  production  of  cotton. 


202  MIOHIOAN   CBKTBAL  RAIUiOAD,  [Septmbtf^ 

into  our  midet  for  the  sole  purpose  of  foisting  tliemselres  into  office,  we 
can  insure  immigrants  (no  matter  from  what  quarter  Uiey  oome),  who  ire 
honest  and  industrious  men  who  come  to  feelc  homes  among  us  and  to 
add  to  the  wealth  and  prosperity  of  the  country,  that  they  will  meet  every- 
where with  a  friendly  and  most  hearty  welcome. 

With  the  many  inducements  now  presented  to  purcbaso  cheap,  beslthfiii 
lands  and  comfortable  homes,  in  a  country  possessing  natural  adraoUgei 
unequalled  in  any  other  portion  of  the  cotton  world,  does  it  not  bebojrs 
the  cotton  trade,  both  of  Europe  and  America ,  to  direct  public  attentioa 
and  immigration  to  us,  and  aid  us  in  working  our  unoccupied  cotton  fieUirf 
By  so  doing,  they  would  indirectly  benefit  themselves  and  very  materiallj 
aid  us.  £very  variety  of  climate  and  soil  is  presented  in  the  cotton  l^elii 
stretching:  from  the  Atlantic  to  the  Bio  Grande,  and  from  the  Oliio  rivet 
to  the  Gulf  of  Mexico. 

The  sun  of  henven  shines  not  on  a  land  more  varied  in  soil,  climate,  sod 
production,  or  better  fitted  for  the  habitation  of  roan. 

In  consideration  of  uli  these  advantafl;es,  your  memorialists  ask  th»t  the 
influence  of  your  Associations  be  exerted  in  direHing  intending  emi^rMott 
to  these  States — believing  them  to  be  the  best  cotton  producing  di>tricU 
on  the  globe — »nd  that  with  requisite  labor  there  is  no  limit,  prsctie>il)y, 
to  thfir  facilities  for  the  production  of  raw  cotton — ^and  that,  too,  at  the 
comparatively  low  figure  of  sixpence  per  pound. 

ROBERT  T.  SAUNDERS. 

Of  Memphis,  Tennessee,  Cuairmao. 

Note. — In  this  memorial  the  average  of  the  Liverpool  C>ttoa  Broken 
Association  for  American  cotton,  is  adopted,  viz. :  443  poun^ls  per  bsle. 
Memphis  cotton  is  much  henvier,  475  pounds  per  bnle  l»eing  the  avenigs 
the  past  Feason,  as  stiown  froiti  the  books  of  Bronson,  BaylissA  Cj.,oottoD 
brokers,  at  Memphis,  Tennessee. 


HICBIGIN  CBNTKAL  lAILROlD. 

The  Miihigan  Central  Railro  d  extends  in  a  very  direct  line  fr6m 
Detroit  to  Chicaoro,  a  distance  of  2d4.8  miles.  At  Detroit  connection  is 
made  wiih  the  Great  Western  of  CanaHa.  (now  f&upplied  with  an  extra  rsil 
for  the  accommodHtion  of  narrow  cars)  and  through  that  road  (viaSae* 
pension  lirid^re)  with  the  Ni^w  York  Central  route  to  the  seaboard.  From 
Chicago  by  this  ruute  to  New  York  the  distam^eis  960  miles.  Wit'^io  a 
short  lime  f^everal  VHluable  auxiiinry  roads  hav^  been  opened, as  tlteGrioJ 
Rapids  and  Indiana  (Grand  Rapids  to  Kalamazoo) ;  the  Jackson,  Laosinf 


COTTON   CULT1V^ATI0»    IN  THB  SOUTH.  201 

>>•      %y  "He   remarks  of    tlie   Hon.  Reverdy   Xihnson,   who 

j^r^  -^         ^  '  ManclieRter,  assured  the  ppop'e  of  Luutashire 

•  ^      Cq       '^  ^  to  be  properly  devciopetl  and  orginized," 

'<^>  **.  ^  V       *2#.  '•Iv  in  tuir  or  five,  but  in  h  few  \ear8,  in 

^4>"'^''-tf   ^^  -^                     \mf'rica,  we  are  forced   to  ihe  «on- 

.  ^^^'^^^/^o' V   V       '^  ^500,000.      Could     we    grow 

"^^  "^  o-*'i^    ^<y  ^y  ''^^i  ^   saved,     Ilis  liearers,  the 


P> 


^    ^'^  ^^^^'ev  ''^         "^^  Southern  cotton  crops,  wiih  the 

*>1      o       Yp       "^^      vjL      •?** 

V;;    '^'i>,    "$    '   ^"^^  *^-<>j^%j^  "elcipin:;  and  rr-^anizing 

^/^5^^%/'*^,,'^<i^.'%/'^.  '^.x  <2,                    'V  a  generation,  and 

^       .        Y     ^     ^        ^'^             ^*              <*             ^          ^  111! 

4     '^    '*'^  ' '''^  "^      '^  *'  *einaik3  clearlv  show 

v-            c»o,  '^^v.  '^       -i   "^^  ifito  when  they  leave  the 


^^     '^^  'C'^,     ^ji   >^  venture  to  give  opinions  on 

>   ^/<         '^^  *  .1  inform  a!  ion* 

%,•  *%/    <^  ^uy  increa'^e  in  the  cotton  crops  of  the 

^     '^^^i'    ^H^  ^  other  hand,  that  labor  in  cotton  culture  is 

.     ^<>,  ,  ^  ^m  three  causes :  E  nitration  from  the  cotton 

>;;r  ^  and  cities,  the  deaths  on  the   plantations,  and  the 

->.  iVora  c«)tton   growing.     Nothing  but   the  free  use  of 

.lie  best  suceens  in  cultivating  the  land  planted,  can  keep 

^  Cotton  \ield,  with  tiie  present  labor,  up  two  and  a  naif  mil- 

'>ales.    The  picking  power — the  quantity  that  can  be   pickt'd — is 

»»inii  of  our  Capacity  in  producing  cotton  ;  and,  even  if  the  present 

•abor  cctu'd  produce  more,  we  could  not  save  more.     "We  do  not  think 

tue  detHrioration  of  the  negro  labor  will  subsi.le  here  w)  low  as  it  has 

<Jo"e  in  tlie  British  West  Indies,  on  account  of  thi  climate  of  the  S.)uth- 

wn  States  being   more   rigorous,   demanding   more  clothing,   and   the 

^'^ence  of  in»lij;enous  and    tropical    fruits,  on    which   thev    are   fed  so 

*'?*''}  there.     This  fact  will  create  a  necessity  on  the  part  of  these  inof- 

*''^'*ive  and  easi'y  contented  people  for  a  lariier  amount  of  work  to  secure 

"jcir  sulwietence.     But  f^r  this  r'itTerence  the  results  in  both  countries 

''^uld  be  identically  the  same. 

IMMIGRATION,   ETC. 

i'nproved  lands  can  now  be  had  in  any  of  the  Cotton  States  at  prices 
varying  f^^^,^  £j  ^^  ^^  pte,.i|,jgp_|5  ,o  |;25— per  acre,  and  farminir  uten- 

J*an(l  Work  stock  can  be  )>urchas  d  at  fair  prices.     Th(j  great  av«-rsion 

proprietors  formerly  had   to  the  subilivi-^ion  of  their  plantations  is 

*  ''Apidly  givir»g  way,  and  lands  can   now  be   purchased  or  leased  in 

"^eiiient  lots  of  any  size.     Wliil««t  we  randilly  admit  that  there  is  a 

gTeat  avtraion  in  the  Southern  mind   to  political  adventurers,  who  come 


f8i/0(*  no 

f 

• 

58>^.S5  93 

«••      ••••■ 

lffl,9M« 

4iH.4.%  10 

21410AO 

451, 19    (0 

4S.S«  W 

•  ••  >  •     • 

10M87  95 

63u9  <i  81 

4fl..Hl«  t« 

3'»4«} 

•          a  «  •  » 

317,189  63 

%,M5c9 

204  IflOBIGAN   CRKTRAL  RAILROAD.  [StpUmkr^ 

WMcl)  rem»inf]ors  were  Gif^bureed  as  fu)low»,  v:z.: 

F»7   e  is  to  ^fn' iDff  ftinds |84.5'^0  00 

lot  res  Miiri«'X<<  a  ^e MM 70  A3 

July  Uiv  d*8,  6  pi  r  cent '07  U25  00 

Ja..        *"      5       ••        40^800.) 

U  P.  t  xon  divl  nnd*,  &.C 87,8n  11 

U.  H.  tax  on  ru*  elp  B 4^5.'b  20 

Balance  unew.ccuODt 188,7^3  73 

Tlie  \m\'ii  ce  from  18  6>67  was  f443«450,  and,  indiuHiig  the  blanca 
from  ibe  two  years  as  abo\e,  the  balauce  to  1869-70  U  S800,03i  SO 
carri  d  to  ibe  gcnrral  account. 

Ti<e  financial  condition  oi  the  Campany  at  the  close  of  the  years  1867-6S 
and  18ti8-60,  as  shown  on  the  general  balance  sheet  is  compared  io  the 
followir.tr  (abul  ition  : 

186S.  1W>,  Tnc'-enM.  Becn^Me. 

CSailalHtock $ft,47I.^««  00  $11.1/7.88100  $S,71»,iib3  00       $ 

FuDcHHi  (I  bt 0,0«*.0v*  ^9  &,i:^7tr<  89               lH%Sfl« 

Urp.ldrtjvl  lends  Ac 9  7  80  75*  0»             lfi«a 

Incom    a.*t.  blaLCH f89.-i43  t«  800.U88  57  tl7,799  69  l,81&,Hii\£ 

TomI $:6,09.J,946  44    $n,»l,68S  46      $l.ti,037  03     

Per  cintra  :  the  chaiges  and  accounts  which  follow,  viz.: 

18^8  1800.            Inc  ess*.      DeereM 

Cons^rticiinn $14,014.167  47  $15,i«1, 086 66  $i,0k7,769  0'J  | 

Ca»h4ini>iindMLdoll 8'>4«7i77        k84.6(7A0         fftjm-^ 

Mj  teria  *  oil  h  •  d        ISSISihO  l<l»i,745-0          ...              6,9«SI 

Aftsttf  in  hiitdttorfrcnenilRecelTer 68.6t*7  68        167.  IK  19       10^41150     

Ai>0et- liun  K  of  'r  Bid  nt 85.c5>37  94,74v<ta9  iL840i     

JolktJb  N  I'd  R  R 1683  6<0        l>8336fl0  

Chca.ol  nduc-.  unl h7,6i;  00  9',63700  

«IbcVip<  n  ami  ttC&'Qiit 94.41131  94.411  Kl  

Advance  J  L  A  a  it.  Ck) lOSOUOdO         lOS.OOOOO 

U  y.5»tJ    .e  tux 3rt*u.-9  2,«03l 

^QRdrv  bC  ourits 64,76615  65,82381  <273S     

J.h.A  li     <'0.Bl0Dd8 

(4Uper  cc'iitofcam  igv) 48.94500  4\9l'O0     


Total .  $16.029,51ti  44  $17  167,634  46  $M3i,o76  02 

The  capital  stock  has  been  incre?ised  during  the  last  year,  by  the  con- 
version of  bonds,  |;1,81 5,500,  and  by  the  amount  of  sloi-k  dividend  Jano- 
ary  1,  1869,  tU04,400.  The  funded  debt  his  decreased  by  the  8 mount 
of  bonds  converted.  Construction  has  been  increased  by  $1,037,769  0<, 
theprincipa'  part  of  which  is  the  amount  of  the  stock  dividend,  (1904,400) 
represenlin;r  permanent  improvements  for  a  series  of  yt:ar8,  the  coet  of 
which  had  been  previously  charged  to  operating  account. 

The  funded  debt,  June  1,  1868  and  1869,  stood  comparatively  as 
follows : 

lBtinort2:"C*'(«terl5rg)«i,  dnpJune  1,1S73. $4':v,4s8  SO  f4r,4>9» 

l8im«»rtij  g:;  (  ti?  •ouv)8<,  <<ue    epr   1,  1669      rO>OliOnO  6O0.«^0(» 

iBtmortgu^'.- .couv)*B,  diieSipt.   ,1869. 1,«.  94.500  09  ai.<>0® 

Istmort  aj.o(ronv)8a  dueo    .  1,  l><8i      6liO,>u0<0  B71,00t« 

iBt XLO  tg'gv;  (c mv.)  a  iik'i; fand 8i», Cue Uct  1,  *83.  ..  »».« 4,10  ,(H) *  00  3.0  .5 0 (0 

Totel $6r968i^l9     $a,l5S.439a 

T!)e  I. on  Is  of  this  company,  which  are  by  their  tenor  convertible  into 
stock  on  the  1st  of  January  only  of  ever^r  year,  will  be  converted  ata^f 
time  upon  presentation  at  the  office  of  the  treasurer,  Boston,  Mass.  Set 
Report. 


I8C9] 


LTABIUTIEB  AND   RESOURCES   09   NATIONAL  BAKff9.  205 


Tiie  market  value  of  Michtcran  Central  stock  is  shown  in  the  fallowing 
talle  of  moiithl}*  ranges  at  the  N^'W  York  Stock  Exchange  Board  : 

lfrJM4.        lf«-«4.        1W6-M.        1SWJ-B7.        IS^T-fiS.        lnA<*-n9. 

CwbdlT (6ii)  (l?x«)  (4xr)  (6xf)  (jst)  f^  t)) 

Jnn       ir«      \  9)i  M:)i-\i*^)t  :(A    -1.8  lOi    -M9      10:-«    -\\4      ^V.H-U'H 

Jniy 11-7    -'16j#  13«    -40  186    -110  10'V-lH3tf  M-Sj^-ll- J^  1HJ4-  19 

Au>: iin   -I'd     iJBX-Mox  i'«   -io>x  no  -114     1«'»<\-''"'     18  -11 

Mpt,   116  -iieaj^  Vii^-i  '«  5^  i«w  -'irjtf  ilox-iis     103  -I'.ijf  nn  -ii» 

Oct l-.'«J^-i«HK  114itf-l:*»     lirx-116     113    -'S7V11W    -11       118X-  •» 

NtT      »J1^-1?H^  li»H  1     ><  11:1.-117,    110    -11734- 10      -ll')i  117    -!IS 

Dc 1:jH-1  PX  -15    -133  •  10-M-in      i:t)i-V5%  2«6Jf-n8     ll^    -I.U 

iMi 1  8*^-88      11.3    -ll>i^  1  t^-OSKHa    -11»H  l'«v-li3      1  <    -'12 

Feb 18i5i  M«      10      -16      llOii-l  6>t  I117    -00      U  5li-r4      317)tf-i  0 

M  rrh lSh^-»6l        W)tf-  I  ii  101     -  0»      1«  7    -llW      l«HlH      in«*-ll8)tf 

Aprl IJft    -15r       «8    -114)<  *01J<  1«*X  'W    -1  PX  JW    -:i.i>|  11-31- »i 

Majr 181    -Ur%  1«6    -115     1(«    -IM'^  IO8X-1IO     118   -1«      IW    -^«X 

Te  r. 106    -V/l       9(^-15<>)i  lUtX-lH     lOS    -117X  lOO^i-lil     111    -131 

Stock  dividends  were  paid  in  July,  18G5,  5  per  cent  $3S0,472,  and  in 
Jaiupry,  lfc6»,  10  per  c<nt,  904,400.  The  dividend  paid  in  Jidy,  1869, 
notiovhided  id  the  above  table,  was  5  per  eent  on  the  increased  ca|.iiHl. 


TOTAL  BES0URCE8  AND  LIABILITIES  OF  THE  RATIONAL  SINKS, 

T  le  foUowiDg  13  an  abstract  of  tlie  reports  made  to  the  Comptroller 

of  the  Cunency,  sliowing  the  condition  of  all  the  National  I3arik<  of  the 
Uoited  States,  at  the  close  of  business  on  the  1 2th  day  of  June,  1869. 

BS'OirBCSd. 

Iy)iD«  and  discoimts ....^ ^ tOS-^.o^.snet 

*pr-^Ar*1t' S,  120. 'I  3  79 

V.n\t'A   t  &»«  boodB  to  seen  e  c  rrnla'i  )ii 83  ,(>'*:>  7*10  09 

Uoit-t  «tiites  boi'is  to  8  cnre  4<*poBUs t><.t^'i.\'t  *)  QO 

Ud{  t^l  St  1 14  bonds  iir*f1  eccu^t  164  oa  band ST.4'«i,ri.50  (K) 

Otb«r-t-  k.bond^a  d  •>  ortg  ^ei ao.77'i  6'«)  63 

Doe  from  redecmln];  a  ents 6-2911<>.Si89 

Di*' from  Vaiioiial  hanks  ... 2i65.Vi6'46i 

Daefr    .  o  her  banks  aud  hankore , M.l  t  .»  9  34 

Real  «*i<t  te.  fim- in  e  and  fixtures 23,«W>,  71  17 

Coritj  texpooses 582.'.*»77  8T 

Pre.»a    i« l.K)»,000l 

Cbecki* a  d other ci»b Items lfll,M',.W  fili 

liiUo'  xational  b«Dks II.MI  417  GO 

BUlr>  of  other  hanks n«,  ii7  (0 

FrBctioaacurreccj • 1,801.^55  6.S 

t^ptce iS.rAO'Nl  48 

lu; al  te'ider not  s 8U,wn,6'>9  (0 

ConipmndliitereMtnote^ IrtKiood 

Ihruej.ercjDtceitidcales 49,81 5.00')  00 

Total $1,604,174,410  65 

LIAB1L1TU8. 

CaptJii  n»ock lia^.SiO.^O  0» 

Rirplm  f  nd 8-2,21  s.67«  47 

UDdivHe<l  proflrs 4<,-lJ,MW70 

i^atlu  .ni  biiik  notes  oa  otnndiog ftn^lh^^TiMOO 

8tate  hank  notes  oitstindlntr 9.^)8.^74  00 

In  ItI  na  .up'*lt-»    67I.J)07.38:  77 

Unit  d    U'^depoits 1K*»1.9.»7  71 

i>t>o«Us  *.f  Uuited  9iat04  dlsbar«inff  oflBcers 2.4'>4.u4S  99 

Pne  ui  .Va  lo  ai  oan  s 10».W5B.»I0  08 

Dr.eL.oth  rbioksanl  bankers asOIH.i71  80 

No^vit  and  hi  »s  red  scoanted »,**'. tin  61 

BUUpajrable 1,'.»\,889  Ot 

Total r 4 $1,6^,171,410  %5 


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NATIONAL  BANK  RBSBRYRB. 


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214  THX   CHIHB8B   AGAIH.  [&ptakf, 

THE  CHISISB  A61IN. 

Since  the  article  in  this  Maoazikx  last  month  upon  Chinese  emancipa- 
tion, the  action  of  the  Memphis  Convention  has  been  made  public  It  adds 
something  to  our  positive  knowled^jre  of  the  suljecf,  but  it  is  mote  frmtfol 
in  stiggestions  and  speculatiom*.  One  result  of  that  Convention  waa  the 
organization  of  the  Mississippi  Yaiiey  Emigration  Companj,  the  ea^tal 
stock  of  which  was  placed  at  $1,000,000,  in  shares  of  $100,  and  $40,000 
were  at  once  subscribed.  The  object  of  the  company  is  to  bring  in  Chi- 
nese laborers  as  fast  as  possible  and  to  distribute  them  fir»t  amoogthe 
stockholder^  and  then  through  the  community  at  largp.  From  statements 
made  at  the  Convention  it  appears  that  Cijinese  laborers  can  be  brooght 
to  San  Francisco  from  Chinese  ports  for  $45  in  gold.  From  San  Framaieo 
to  Memphis  they  can  be  transported  for  from  $45  to  $50  in  carreBor, 
the  rate  depending  upon  tije  number  in  a  "  cpnsignmenL''  From  Memphis 
to  various  points  at  the  South  they  can  be  distributed  at  rates  vaiyiog 
from  one  cent  per  mile  by  rail,  to  from  $1  to  $2  50  a  head  on  the  water 
routes,  as  the  distance  may  be.  From  Ilong  Kong  to  New  York  by  aailf 
the  rate  would  be  from  $100  to  $125  in  gold.  The  time  from  Chiaa  to 
the  Mississippi  would  be  thii  ty-five  or  for:y  days  by  the  CaliforDia  route, 
and  by  New  York,  say,  one  hundred  and  twenty-five  days.  On  the  sub- 
ject of  wages  it  was  generally  conceded  by  the  speakers  at  the  Memphis 
Convention  that  the  rates  paid  would,  be  far  below  the  wages  under  the 
present  sjst^»m.  It  was  impossible  to  arrive  at  exact  statements  hot 
Mr.  Koopmanschaap,  the  Chinese  contractor,  said  the  Chinese  now  in 
California  must  have  $20  a  month  to  induce  them  to  come  east,  hot 
fresh  importation  could  be  made  upon  a  five  year  contract  for  ten  or 
twelve  dollars  a  month  and  transportation  paid. 

A  Chinese  merchant  addressing  the  CiOvention  warned  them  against 
the  importation  of  the  Chinese  labor  of  the  coast  cities,  and  urged  the 
importance  of  carefully  selecting  them  from  the  agricultural  classes  wd 
the  artisans  of  the  interior.  The  Hawaian  Commissioner  of  EmigralioB, 
in  a  letter  to  the  Convention,  spoke  of  the  striking  dfifertnces  in  Chi- 
nese laborers,  and  said  that  In  consequence  of  inattention  to  seiectioo,  the 
Coolies  bad  given  great  disappointment  in  Peru,  Cuba  and  the  Sand- 
wich Islands.  He  urged  the  importan<:e  of  &  careful  and  experienced 
personal  selection  of  young,  healthy  and  intelligent  laboreia.  Mr.  Koop- 
manschaap, the  Chinese  contractor,  has  brought  30,000  lo  California,  and 
he  is  ready  to  proriiise  to  bring  100,000  in  the  coming  year.  Through 
him  the  Central  Pacific  Railroad  was  supplied  with  labor.  Hd  asserts 
that  the  Chinese  keep  their  contracts. 

Considerable  opposition  to  the  Chinese  has  been  excited  by  the  circam- 


1869]  THS   CHIKE8X   AQAIN.  215 

stance  that  they  will  work  for  less  wages  tban  is  now  paid  for  labor.    It 

IS  prfci^ely  for  this  reason  that  they  will  prove  a  desirable  addition  to  the 

productive   force   of    the   country.      Hostility   to   the   Chinese  on  this 

account  is  M  unphilosophical  and   shortsighted  as  the  former  op|»ositioil 

to  lHb(»r  saving  machinery  and  to  the  new  mechHnical  inventions  which 

promise  to  increase  production,  lessen  cost  and  add  to  the  happiness  of 

all  ('Jn^ses.     If  this  unskilled  labor  comes  here  it  will  at  once  n«  ed  tbe 

service   of  our  skilbd  mechanics  and  laborers  to  instruct  and   direct  it. 

At  once  a  host  of  our  present  woikingmen  become  overseers,  foremen, 

even  emiloyers  and  capitalists.     Oar  workmen  have  already  found  foreign 

lalor  more  profitable  in  canal  and  railroad   building  than  if  they  had 

done  this  woik  themselves.     They  have  been  advanced  from  drudgery  to 

direction,  and  they  have  seen,  in  spite  of  the  enormous  emigration  from 

Europe,  a  gradual  and  steady  increase  in  the  wages  of  labor,  and  the  sum 

of  CO. I. fort  that  the  reward  of  labor  secures.     Such  will  be  the  result  of 

an  Asi^tio  emigration,  and  the  ones  who  bewail  its   approach   now  and 

pFpdict  an  inroad  of  evils,  will  live  to  regret  the  hasty  and  unreasonable 

judirement  they  have  formed.    The  great  need  of  this  country  i8  1  ibor — 

labor  in  the  lowest  grade  and  labor  that  is  skilled  and  intelligent.     Ilere  is 

abroad  field  for  developeinent  for  an  increasing  population,  for  expanding 

interests.     Whatever  cheapens  products  benefits  all  these  interests  and 

addn  to  the  aggregate  wealth  of  the  community. 

It  is  a  curious  fact  that  the  Convention  of  both  political  parties  in 
Calii'ornia,  held  within  the  lant  few  weeks,  have  passed  such  resolutions 
against  the  emigration  of  Chinese  as  they  never  would  have  passed 
against  th«  emigration  of  Europeans.  The  California  senators  have  also 
spoken.  The  difference  in  the  language  of  the  two  parties  is  this:  One 
obj**<ts  in  (oto  to  Chinese  emigration  and  Cliinese  suffrage.  Tne  other 
ol'jf'ct«»  to  Chinese  suffrage  but  would  protect  "inoffensive"  emiorrants. 
One  C  ilifornia  senator  says  that  it  is  the  duty  of  every  class  of  citizens 
to  prevent  the  introduction  of  the  Chinese.  Today  he  says  they  will 
comi>f»te  with  the  common  laborer,  "to-morrow  with  the  mas>n,  the 
bricUsyer,  the  carpenter,  and  the  machinist,  for  they  are  the  most  frugal^ 
mdustfious  and  ingenimis people  on  the  face  of  tue  earth"  The  s^-nator 
pointed  to  a  "splendid  granite  building,"  the  stone  of  which  was  cut  in 
China,  and  said  that  he  favored  keeping  such  men  out  of  the  State — men 
who  can  do  the  work  for  less  than  half  the  price  paid  the  white  mechanic. 
The  fart  that  these  nfien  are  "  frugal,  industrious  and  inijenious,"  would 
imply  ihit  they  were  most  valuable  additions  to  our  labor  force.  la 
builtiin*^  our  great  public  works,  raihond^,  canals,  wharves  and  pier%  in 
druljing  harbors,  in  developing  mines  of  coal  and  iron,  it  is  this  cheap 
labor  that  is  needed.     This  senator's  speech  clearly  refutes  itself.     Another 


216  THS  0HINX8B  AOAiiT.  [StptmUr^ 

CaliforDia  senator  writes  a  letter  on  the  same  subject  Bat  he,  too,  is 
evidently  influenced  by  the  orevalent  California  aeniiment  He  does  not 
fear  the  Slate  will  be  overrun,  but  thinks  the  Chinese  will  be  apt  to  find 
their  way  to  Mexico.    He  adds,  however: 

B'^ides  Mexico,  Dearly  all  of  Ceatral  and  South  A.meriea  ia  opeo  to  th#m,iod 
maokiad  would  bf  greatly  benefited  by  their  comiog.  Ihe  wealth  aod  b'^piUMi 
of  the  world  would  be  iDdefioit^rly  increAaed  thereby.  I  cannot  ajnipai  iz'  «r^ 
that  emioeotly  Chinese  po  'cy  of  ezdaiiin^  from  the  aocoltiTated  fietda  of  tiM  N«v 
World  a  y  people  who  eeire  to  iocrease  the  oamber  of  blad«$8  of  graaa  and  eir»(tf 
corn.  It  has  umg  benn  oiir  proudest  bo&st  that  America  U  the  asylam  of  the 
oppres.«ed  of  all  Unds  and  if  the  crowded  popolatiooa  of  Af-Ia  as  well  as  of  Europe 
desire  the  pr'vilege  of  expandini;  their  labor  here,  let  them  come.  Oar  immtitratigB 
from  Euiope  this  year  is  unusually  large — more  than  26,000  10  ezoei^s  of  liei  ;tir 
at  this)  d^te  These  tides  may  meet  and  poe^ibly  miogl**,  but  it  14  more  likely  that 
the  Asiatic  ptrtion  will  be  deflected  southward,  where  a  more  oongeniU  hmatfm 
them  c  n  be  found. 

I  can  remember  no  country  tha^  has  not  been  benefited  by  legitimate  tmmi^rttka* 
Oor  owo  is  a  conspicuous  tfZii'ple  of  this.  In  some  cases  we  toul*  havedeiired 
a  b'ftter  class  of  immigration,  bu'  we  ha^e  repelled  oooe,  and  the  g^'iisral  tesuUhai 
been  advant4ge<  un.  The  character  of  population,  iod«rpt*odent  of  race,  depe  ds 
much  ufion  the  country  and  cimate  in  which  they  ar«  tl  rown,  and  the  dceceodtoto 
of  the  Chinese,  should  thei**  d  i-cendants  i^row  up  in  this  ooantry,  may  c^ikm 
cloaely  t  •  our  habits  of  thinking  aod  acting.  Such  at  ali  r  yeota,  has  be«>ti  tb«  roe 
with  every  other  race  tb^t  h  a  0  me  to  this  country.  If,  in  that  eveot,  thej  sbooki 
olai  II,  aod  t>e  permitted  to  exercise  the  pri?iieges  of  citisenahiii^  no  evil  00  cooh 
of  it. 

We  have  quoted  the  opinions  of  these  Senators  rather  as  rep^^eseota. 
tive  of  the  opinion  that  prevails  on  the  Pacific  S'ope  than  for  au?  other 
purpose,  and  we  firmly  believe  that  they  are  opinions  tnat  time  will  so 
mod'fy,  that  in  a  few  yeirs  no  more  objection  will  be  made  to  an  Asiatic 
than  to  a  European  emigrant,  and  a  decided  preference  will  be  gives 
to  industry,  frugality  and  ingenuity,  come  vs hence  they  nitfy. 

Id  tbe  midst  of  this  discussion  of  Chinese  emigration,  a  law  of  the  United 
StHtes,  passed  in  18ii2,  is  brought  up,  and  it  is  claimed  that  this  act  is 
proliibilory  of  this  emigration  as  it  has  been  conducted.  It  is  just  I'O^u^lfl 
that  tbe  act  is  misunderstood,  and  that  it  applies  not  to  the  tiaosportaUoB 
of  Coolies  from  Chiua  to  the  United  States,  but  to  the  u^  of 
Anierican  vessels  for  carrying  Coolies  from  Cijina  to  ports  in  otlier 
foreign  countries.  But  whatever  interpertation  is  placed  on  the  sci  iMs 
fact  remains,  that  the  ''free  and  voluntary  emigration  of  any  Ciiinefie 
subject*'  is  not  proliibited.  Be^:ide&  this,  it  would  seem  strange,  cosHder- 
ing  the  hostility  of  Californians  to  the  Chinese,  that  Mr.  Koop  iianscLup 
and  his  associates  had  never  been  interfered  with.  Tb«re  was  Uoited 
States  law  against  them.  There  was  local  antipathy  pervading  not  onlj 
the  masses,  but  inspiring  the  politicians,  and  yet  they  inported  lii^ 
Chinese  without  interference  or  question.  If  the  law  of  1862  should  be 
interpreted  as  it  i?,  by  those  who  use  it  as  a  shield  against  the  emii^rsioo 
of  Chinese,  there  is  little  doubt  it  nill  be  modified,  and  that  the  effligra* 


1869]  KAILKOAD  BARNIV08   TOR  JULY.  217 

lion  of  Asiatics  will  be  protected  only  by  the  same  safeguards  tbat  are 
thrown  about  all  emigrHtion.  The  fear  of  peonage  or  slavery  will  not  be 
felt.  The  Constitutional  guarantee  which  protects  the  negro  will  protect 
the  Asiatic ;  and^  under  a  beneficent  government  of  equal  laws,  with 
climate  and  production  unrivalled,  with  labor  free  and  unharnessed,  there 
can  be  no  doubt  tbat  prosperity  aud  development  will  be  all  that  we  could 
wish  or  hope  for. 

.     RilLROAD  EARNINGS  FOR  JDLT  AND  SINCE  JANUARY  1. 

The  earnings  of  the  several  important  lines  of  railroad  which  report 
their  monthly  traffic,  have  now  been  obtained  and  are  published  in  our 
Dsual  tabular  form  below.  It  is  much  to  be  regretted  that  so  few  com- 
panies furnish  to  their  own  stockholders,  who  are  indeed  the  actual  owners 
of  the  property,  a  statement  of  the  monthly  earnings  of  the  roads,  since 
tlie  bona  fide  value  of  the  shares  which  they  hold,  depends  from  time  to 
time,  almost  entirely  upon  the  condition  of  the  traffic.  It  is  hardly  poa- 
fibie  to  suggest  a  sin'^le  remedy,  which  would  be  more  effective  in  prevent- 
ing the  gross  and  dishonorable  speculations  in  railroad  stocks  by  directors 
anil  their  friends,  to  the  injury  ol  innocent  stockholders,  than  the  passage 
of  a  law  or  Stock  Exchange  rule,  requiring  every  company,  whose  shares 
are  .sold  at  the  board,  to  have  a  monthly  report  of  expenses  and  eirnings 
rt'corded  where  stockholders  could  examine  it  at  their  pleasure.  The 
tendency  of  legislation  is  now  in  this  direction,  and  within  a  few  years  it 
is  more  than  probable  that  such  laws  will  t)e  mad ). 

There  are  several  points  worthy  of  attention  in  regard  to  the  July  earn* 
iu^s.  The  Cuieago  and  Alton  road  shews  a  considf rable  decrease  from  the 
eartiinera  of  July,  1^68,  as  in  that  month  the  additional  mileage  from  the 
leased  line  (150  mile>)  was  aildt^d,  and  the  comparison  for  the  previous 
months  of  the  current  yeir  haviog  been  mada  wiih  the  earnings  of  a 
slj»<rri-rline,  has  naturally  shown  a  verv  larsre  apparent  increase. 

The  earnipgs  of  the  conj-olidnted  **Lake  Shme  and  Michigan  Southern 
R«iUav"  are  uiven  now  for  the  first  time,  and  sh  >w  an  increase  of  about 
^40,000  over  the  earnings  of  the  constituent  roads  in  1868. 

The  earnings  for  July  are  as  follows  : 

•BJtIlfiOk.lt  BAHNIVG8  rOB  JUr.T. 

lUitlJ 

'ChiragoA  *Hon tavj Vgi 

('H  cd:.'u  ANoiNhweetcrn 1,1«7.1M 

t^.'hi  a>o,  Kockl  1  Dd  *  fHcillc 440,.^0  ' 

»1.  ioinC-Dtial Gff  ,7^1 

M mHta  &  -t'DciDnatl 1  tt.sOJ 

M  cliijjiii  Centrrtl 899«U'0 

s:>^kc   bore  &  Mi<*higan  BouUiem 7V7  045 

-^;i.w;.iik  e&  ?ir.  Paul 68ft814 

<':j  o&  M  »8  BBippl     VHMi 

^t.  Loaip,  A  Iron  d&  Terrf^  Haute 139,761 

1  oledo,  Wiib»sb  A  v\  edwern SlJ,six) 


ToU' $5,00M,7«3  #4  5*9,108 


18«8. 

Inc. 

r»po. 

$'04,011 

%  ... 

$60,nU 

1.0  \,m 

7.\6^ 

•  •  •  * 

84  ^"^ 

98.415 

•  •  •  • 

C49  714 

l!a,U79 

•  •  •  • 

10«,4i;i 

1,0-9 

•  ••  • 

821.013 

8  947 

*  ■  4  # 

6dH,9:i4 

40.111 

•  •  •  • 

41^897 

16^943 

.  , 

lfll,4'6 

9  •  •  • 

J,*^©! 

143,98'* 

•   ■ 

14,225 

a»3,iS3i 

23,9T7 

•  •  •  • 

M  519,108 

r6'l,595| 

*  The  c«>mpaH  on  no vr  lnr.iade<*.  for  the  ftrat  time,  the  »ame  mileage  as  in  186c). 

t  Miloat;   g  eatoi  than  last  year 

t  Incla'<ee  Dnbuqne  nn  1    ioiiz  Olty  Ifnued  Une. 

f  ihe  «art:luga  ci  coueolidated  lineanow  flrat  reported. 


218                            TORKIOK  TRADB   OF  TBI   UKITXD   BTATS8.  [SeptemhiT^ 

The  total  earnings  from  January  1  to  J alj  31,  for  the  carrent  a&d  \ui 
previous  }ear8  were  as  follows : 

SABNIN4B  raOK  JAVUABT  I  TO  JULT  V.. 

18Hd.             la'a  Tne.         Dec 

Cnite^fto  &  Alt  n IMSii/iSI     $VS9,'^  fnU41 

Chi  ago  4ft    ort' we«tern 7.^i55,*'l      A91'.^<  ffJtsn 

Chictifu,  B  ck  Id  aud  A  Pacific S,770.409       SU9,t6l  MO  45 

llinola    P'l  ri< 4.4*i9.374       S,6S:>,  :(i6  C44.0M 

Hfir  etta  &  Cine  unatl 747,444          6  4.9i<6  731014 

Mi  hiifaii  C  i.trHl ^ S.0(H,815        S,4U658I  SOI  783 

*Lakc    lio  e  .3k  M  chigan Sontl  em 8.vf)l,:^10       2,04'\8;O  t&^^*Mi 

M'I»Miak«AM     Paul S66i,i*l9       J,9in.'»T  6H68i 

Ohio&U  Bsibfippi l,.ftb,&5S        l,677^i4  ...    IUU.ISI 

Ft    L«nii-,     Jto  .  ATere  Bante 104i*,r>47          98iu74  fS.OM 

Toled,  Waliakh  4b  Western S.lbOUS4       l,9Stt478  £d,9J6 

Total $ii,Itf7S18  $S8k7aa,S18  $ifil6,m  $Li&m 


i0^^^0*0^0^0^0^^m0^^^^0m0' 


f^^t^^^^0^0t^t0^m 


FOREIGN  TRADE  OF  THE  UKITED  RTiTES. 

From  the  last  monthly  report  of  the  Bureau  of  Slati-tics  we  compile 

the  following  statement  of  the  imports  and  exports  of  the  United  StAiesibr 
the  first  eleven  months  of  the  fiscal  year  18(58-9.  The  import!  are  of 
course  invariably  entered  in  specie  value,  and,  in  order  to  fadliiate  com* 
parisoD,  the  official  statistician  has  reduced  the  exports  of  produce,  wbidi 
are  entered  in  currency  value,  to  gold  value  also: 

XXFOBTB  rOB  MIXTMM  KOHTHS  BHDIHO,  HAT  81,  1800. 

Kerchan-  Gold  and 

1SS8.                                                                                di**-.                    Jt  r  >gTei«tt 

July $8  ,&'S,1M           f48\'Wt  |iS,8.«,«i 

Angnet 88,8I8,««l           M;Jl,17«  acSS^W 

Be,.umber SS.O'^.OTO          l,488,7<i5  84,38,73 

Octobtr 81,«69,«8           l,0:S,.'iQ9  «<.»Z,55 

l«ov»'mber 27,9,838          l,l0:,6«4  t  %<«y» 

December ^1,118,534             88i,l4t  81,9S^l« 

Jaiiuiry »,«10,74*             BOl  898  MLllt^} 

Prbruary 8<,68«,183          t,58T.64l  8\  7».7« 

March 47,r<8.M9          SHhSJ-S  6«,  lU^ 

Ap  II 47,09«,94l           6,141.491  6-'.^^S* 

May 40,901,88             M-..Oi  4:,.*«.0M 

Total $379,i7s*,445       $18,115,118  $3  t.^OS? 

BZPOBTS  DOMBBTIC  PBODUCB   AND  PFBCIB    F'^B  BI.^TEN   KONTHS   BNDIKO  MAT  81,  180.  (FW. 

SUCB  BKDUC£D  TO  OULD  TALUS.) 

Prodoce  und  . 

1868.                                                                                  Pp"cle.       Mrrchan-^i^e.  Apr^*; 

Jnly $10.405«9      $  >.8  l,0;<5  I '«'*'*'S 

•agiiBt I,H47,3*«1         15.l0i,3»4  l*'*^ 

Be    tinker 8,t»7i',*19        1MMV«8  "''^^!2 

0«tobc    S,«M"»*»         808i«7,9iSl  *^,^^ 

>ovi'mbe- 1,«H,W)9         27.0>.V»85  «••*»* 

Deciiub  r 8,891,268         8:,8lU.(.9i  3S,7«UW 

1  "'♦>■'.  ---» 

^annHry 4  6<^fi91         99.911681  **'**S 

>eb*iary 87«W.0iU         9S,>0  .«W  «tJ7l» 

Mich „ 1.8*4,778         9^8  4.874  'V^Si 

Aprl 1,5«M.8I9         Sl-.-iKOS  »'*£•£ 

May...   8,067,696        9f,r7,6<9  ».i&^^ 

ToU» $8^,782,8.8     $26t,t;74,4U«  #<  0.  l!6.«* 


*  iBclodea  ihe  consolidated  Hues  for  Jaly,  and  Michigan  SoathempreTi&oaly. 


1869]  THB  TT8URT  PB0SSCUTI0N8.  319 

IXP0AT8  or  roBBisv  pbosvotb  Aim  sricn,  roB  mlxymm  xoirrHS  irkko  vat  31, 18<t9. 

Merchan-  God  and 

JS68.  dl-e.  Hilvt-r,  A  firfffcfate. 

jQ!y $78fi.l78  $854,4«-2  $Ifi4\67d" 

ADjTiPt 781,718  J«78,«7.<  l.':W,885 

Sepiembe' l,0!«7.4-«  422,664  J,6:0,i>41 

OcloUr H:^1848  62H'^6  1,6*8,878 

Novcn.bor 7  0/19  2«3.2?^  l.«  83,^07 

Det-niber 737,8:5  904,fc6a  1,142,107 

January....'. 6T7,2«9  P68,m  1,'*85,881 

Kebr-mr* 611.{)9a  1,715.6J8  2.227/40 

M;rrh , ^     9M),ft7«  S,a59J75  8  M.M49 

April       1,211,575  l,768.h«2  2,98(«,487 

Mjijr.. , 1,185,226  9.11' ,A.<^4  8  29t\9C9 

To<al $9,6ia,629      $13,6&8,o75        t»2,iO0,T04 

BVOAPITIJUkTXOV. 

TotaMmports  elcTcn  mmitba 1357,391,867 

Kzporti*  iiom  t-tlc  pro  nee  and  prodnce  aod  pp  c  e  eleven  men  li0.$39O,4OA  f%8n 
hzparc*  foreiga  pi  oduce  aod  Bpecie  eleven  mouihd S2,*i00,701 

Total  exports  eK  ven  montha f819,(Urr.8S4 

Exc'Bsofimporta $81,786,978 

The  result  of  tbe  eleven  months'  trade  is  a  balance  against  the  country 
of  $8^,786,973,  upon  the  purelj  commercial  exchanges. 

Since  the  above  was  written  we  have  received  bj  telegraph  the  fissures 
for  June,  tbe  last  month  of  the  year.  They  are  not,  however,  furnished 
Id  sufficient  detail  to  classify  them,  as  is  done  for  the  eleren  months  in 
the  foregoing  tables.  Copies  of  the  printed  report  will  probably  be  ready 
in  about  two  weeks.  The  total  statement  for  the  twelve  months  is  given 
by  telegraph  as  follows : 


^  Gold  Valnee -^ 

Imports.  Exports.        Be-cxi  oris. 

Per  the  year  ending  Jane  80, 1869 $487,026,641       $£18,108,765       $25,180,167 

From  the  foregoing  it  will  be  seen  that  our  imports  during  tbe  year 
eiceed  oar  exports  and  re-exports  combined  by  $93,792,609. 


THE  DSDBT  PROSECUTIONS. 

Jud^e  Cardozo  has  acted  wisely  in  inflicting  a  very  lenient  punishment 
on  the  brokers  who  were  convicted  on  their  own  confession  under  the 
usury  laws  of  this  State.  We  have  no  sympathy  with  tho^e  who  clamored 
for  severity  on  the  ground  that  by  sending  to  prison  for  three  months 
some  of  the  richest  money-lenders  in  Wall  street,  the  law  would  become 
odious,  and  would  be  more  certainly  repealed  at  the  next  session  of  the 
Legislature.  It  is  only  within  the  last  two  years  that  flagrant  violations 
of  this  law  have  been  practised  in  this  city.  Previously  the  banks  were 
extremelv  scrupulous,  as  were  also  private  lepders,  to  keep  within  the 
strict  letter    of   the    statute.      The  recent  combinations  to    lock  up 


2!20  rax  vnvwT  pROBSounoxra.  [Stptmnherj 

curiencv  and  to  put  the  tourniquet  on  the  money  market  hare,  however, 
produced  fio  much  mischief  to  general  business  and  have  inflicted  losees 
of  such  magnitude  and  cruelty  on  our  mercantile  and  indastrial  interests, 
that  some  prompt  remedy  had  to  be  applied.  The  remedy  of  proeecii- 
tion  under  these  old  usury  laws  was  tried,  and  was  found  sncces&fal 
This  resu't  has  secured  a  popular  approval  for  the  usury  laws  which  tbej 
have  never  had  before,  and  as  every  effort  to  repeal  these  statntes  bas 
failed  heretofore,  so  there  is  now  the  more  probability  that  fjtnre 
efforts  would  fail,  even  if  supported  by  the  odium  of  severe  and  rigoroos 
punishments  inflicted  on  persons  convicted.  Such  ili-timed  severity 
would  have  been  objectionable  for  many  reasons*  Prominent  amoog 
them  is  the  notorious  fact  that  the  ringleaders  in  the  conspiracy  to 
lock  up  money  have  not  been  prosecuted  and  cannot  be  reached,  and 
that  as  frequently  happens  in  this  class  of  prosecutions  the  persons 
proceeded  against  are  almost  exclusively  subordinate  agents.  More- 
over, the  law  has  slumbered  for  more  than  thirty  years,  and  no  eoDvie- 
tion  we  believe  has  been  made  under  it  before.  Hence  the  judicious 
and  moderate  forbearance  of  the  court  is  much  approved  and  meeta 
exactly  the  great  principle  of  penal  legislation,  that  it  is  the  certaioty 
rather  than  the  severity  of  punishment  which  deters  from  crime. 

There  is  no  necessity  to  conceal  the  simple  questions  of  fact  involved 
in  thei^  proceedings  by  any  general  disquisitions  as  to  the  causes  which 
govern  the  rate  of  interoat,  and  th'*  necessity  of  leaving  nntrammeiled 
the  great  laws  of  supply  and  demand,  both  in  the  money  market  and 
elsewhere.  The  popular  mind  discards  such  refinements  of  reasoning  as 
inapplicable  here.  What  is  patent  is  that  a  grave  wrong  was  done  to 
thousands  of  business  men  and  to  the  public  gener  ally  by  the  manceai^ers 
of  a  tight  money  clique  as  it  was  called,  and  that  for  this  wrong  s 
remedy  was  found — an  effective  remedy — in  the  prosecutions  for  usury. 
As  the  trouble  was  stopped  by  these  prosecutions,  so  the  people  will  be 
likely  to  insist  that  the  statutes  whose  enforcement  as  seemed  to 
confer  a  public  service  shall  be  maintained  in  force,  or  at  least  shall  not  be 
repealed  until  some  safeguard  of  equal  efficacy  can  be  substituted. 

Such,  we  say,  is  tLo  popular  view  of  this  affair.  Aud  hostile  as  ve 
are  to  any  unnecessary  interference  by  governmental  authority  with 
the  free  movements  of  business,  we  cannot  wonder  at  the  turn  which 
the  popular  sentiment  has  taken.  For  our  financial  machinery  is  so 
wanting  in  elasticity,  so  liable  to  spasms  and  jerks,  so  sensitive  to  sligbt 
disturbances  and  interruptions,  that  we  have  lately  seen  a  shrewd  cliqo^ 
who  can  control  but  10  or  12  millions  of  dollars,  throw  the  whole  mooey 
market  into  confusion.  And  until  this  needful  elasticity  and  strength  can 
be  imparted  to  our  monetary  machinery,  the  people  will  be  sore  to  kwk 


1869]  COlOfXRCI   AND  KAVIOATIOK   OF  THE   UNITXI}  6TATX3.  221 


with  favor  to  any  expedients— ^and  even  to  such  expedients  as  usury 
laws — if  thereby  protection  can  be  had  from  such  mischiefs  and  wide- 
spread calamities  as  have  been  caused  by  the  monetary  stringency  and 
financial  spasms  of  the  last  f^w  months. 

The  great  lesson,  then,  we  should  learn  from  the  usury  prosecutions 
and  from  the  popular  approval  that  they  have  secured  is,  that  there  is 
a  pressing  need  for  such  elasticity  in  that  the  currency,  artiBcial  monetary 
stiingency  shall  not  be  under  the  control  and  at  the  bidding  of  any 
band  of  speculators  who  may  choose  to  club  their  means  together  to 
produce  trouble.  When  the  money  market  is  strengthened  against 
these  sinister  influences,  the  people  will  feel  safe  and  they  will  be  less 
likely  to  look  to  usury  prosecutions  to  protect  them. 

But  how,  it  has  been  asked,  is  this  elasticity  to  be  given.  Mr.  Bout- 
well  has  answered  this  question  by  his  recent  purchases  of  boT>ds  for  the 
linking  fund.  By  them  he  has  returned  to  the  channels  of  business,  all 
the  currency  received  into  the  Treasury  vaults,  and  has  prevented  any 
undue  depletion  of  the  circulating  current.  This  policy,  however,  gives 
odIv  a  temporary  relief.  The  receipts  for  taxes  will  now  fall  off.  In  Sep- 
tember and  October  Mr.  Boutwell  will  have  very  little  currency  to  spare 
for  the  buying  of  bonds.  And  yet,  in  the^e  months,  the  circulating 
current  will  be  depleted  by  a  drain  of  50  or  60  millions  of  currency 
to  move  the  crops  in  the  interior,  and  especially  in  the  West  and  South. 
How  will  the  vacuum  be  filled  up  f  How  shall  we  avoid  6nancial  trouble 
in  consequence  of  the  depletion  ?  Such  are  the  questions  which  are 
every  day  forcing  themselves  more  and  more  on  thoughtful  men.  The 
Chkoniclb  has  several  times  of  late  discussed  these  questions  and 
suggested  a  solution  of  the  difficulty.  Whatever  course  may  eventually 
be  adopted,  one  thing  may  be  taken  for  granted  that,  under  no  circum- 
stances, and  as  a  remedy  for  no  present  trouble  or  threatening  danger, 
will  the  country  submit  to  have  the  currency  infl.ited  by  any  further 
issues  of  paper  money,  either  in  the  form  of  greenbacks  or  of  banknotes. 
In  a  pressing  emergency,  our  people  may  be  glad  to  see  mischief  pre- 
vented and  wrong  undone  by  such  exceptionable  proceedings  as  prosecu* 
tions  for  usury,  but  they  will  never  cease  to  detest  and  prohibit  further 
issues  of  paper  money  as  a  remedy  worse  than  the  evil  it  might  be 
designed  to  cure. 

STATISTICS  OF  COMMERCE  AID  NAVIOATIOST  OF  THE  UNITED  STATES. 

The  monthly  report  of  the  Bureau  of  Statistics,  juRt  published,  exhibits  the 
statistics  of  our  commerce  and  navigation  for  the  month  of  May,  1869,  ond  for 
til '  eleven  months  ending  M  y  3lst,  1869,  as  compared  wiih  the  eleve  i  months 
ccdnd  May  31st,  1868.     Ihe  iollowing  is  a  synopsis  . 

Months  ended                                                                   Imports.  Exports.  Be>exports. 

May  31,  1869 $41,540,089  $39,123,331  $1S»5.909 

3«ay  31,  18G8 35023,100  49,608.645  884  384 

£Weo  months  ended  May  31, 1^69 397.  M4.357  377,511,073  fgifiOiK7V4 

Kleren  montlia  ended  Majr  31, 1866 ^9,329.890  421.898|240  SO.  13o,  187 


222  COMMSRCB   AMD  KAVIOATIOK   0¥  THB  TTNITBD  mATEAj[Sq>tmhtr 

Ffoport'oDS  of  the  fprfffoiDg  fbipped  io  Americas  and  fore'go  Tesadidaricg 
the  el>^Ten  months  ended  May  8l8t»  1809  : 

American  yemels |1?9.405.3^1         |!32,7*l9.<n7       |^4.-1^<93 

Foreign  vebMlB 74.989.(56  Sf4,771,i3S  ^.mJUl 

Total $397.3U4,357         #377^11,072        •a.riJQ.TM 

From  this  it  will  be  seen  that  69  2  prr  cent  of  th«>  imports  67  5  p»r  cent  of 
the  exports^  and  36.5  per  cent  of  the  re-exports  were  carried  in  i  rngo  veeselL 
The  doiiieht  ic  exports  are  expressed  in  carr  ncj  Talues,  except  mercbaodtee  froa 
the  P.  c  flc  ports  and  specie  and  bolHon.  The  valae  of  forciiso  c<Mn'roditieB 
remBininL/  in  warehouse  May  31, 1869,  was  $56,105,192,  against  $430l6.5j3is 
May.  186S. 

The  St  ttt^ments  are  followed  by  eammarirs  giving  tbe  totals  of  imports.  PTport» 
re  ex  nor  s  wun  house  transactions  and  tonn-ge  by  months  since  Ja  y,  18(7 

Number  and  tonnage  of  American  and  foreign  Tefwls  entered  atd  dared 
in  the  fore  gn  trade  during  tbe  eleven  months  ended  May  3: ,  1868  : 

r        Entered.         ^  «— Cleved. . 

No.               Tins.  Na               T«l 

American  Tt^ssele 8.933          3,5«!74l  9.(53         3.779^ 

Foreign  veaaelB :.14,ili           3,664.213  14.5J4          4.0  i3f» 

Total 23,U44  7,236,974  S3.5B4  7,«4»4ti 

£ltvtn  mouths  ended  May  31, 1869  : 

4'        Entered. »  , Cleared. > 

No.                ToDB.  No                ToBS. 

American  remwla 8>64           3,(78,189  8.693          3.063.^75 

Foreign  ve^eU 16,485           4.610.470  16,43i          4,did.4b3 

Total 25,349  7,888,659  25^125  7,88i.4T9 

The  report  contains  an  elaborate  table,  which  exhibits  the  imports,  exports 
and  re-esc  ports  into  and  from  each  of  the  ninety -seven  customs  district?,  report- 
ing truiiS^ciious  during  May,  to  and  from  each  of  the  thirteen  prinetpal  eoootriei 
withwiieh  the  ULiied  States  have  trade.  From  thii  table  the  fjllo«iogi8 
obtained : 

IraportfL  Exports.  Be^rpafit 

United  Kingdom |i:i.u-.6  5:i3  |18,272  54l  H'^t.£5 

Canada 2.2  2,«63  2.03.219  5  9.S3: 

Other  British  America 85388  343.582  )ti,4is 

Spain 14-».2  8  642.118                

Cuba  and  Purto  Rico 10,91 9,«  13  1,1:5,276  1,137.^7? 

Other  West  Indies 844,2«  7;»679  10,367 

ChinaaudJupan 927,991  1.208.2^8  6>.<5 

France 2,741,825  3949.610  173^ 

Hamburg  and  Bremen 1.971.347  4,113,096  9,806 

Brazil i 2,3^5,168  412,651  9.»7 

In  add i linn  to  tbe  foregoing  tbe  report  contains  comparative  statements  show- 
ing the  number  L>nd  tonnage  of  ve(8eIs~distinj.Qishing  tbeir  oat iooa^itie^— which 
enter<d  into  and  cleared  from  Great  Britain  in  the  five  months  ended  Miy31 
of  the  respective  >ears  1867, 1868  and  1869  ;  the  net  receipts  in  6. eat  B  itaio 
from  stamp  dutits  during  each  of  the  ten  years  ended  May  31,  troo  lb59  to 
1868  inclusive;  exports  from  the  ports  of  Quebec  and  Ontario  for  the  feeal 
years  ISti?  and  1868;  exports  to  the  (JniteJ  States  and  total  exports  fr  m  tJtt 
several  provinces  io  the  fiscal  year  1868  ;  tbe  value  of  imports,  exports  and  tbe 
amoni  t  eotered  for  home  consumption ;  2nd  also  the  amount  of  doty  collected 
at  each  port  in  Nova  Scotia  and  New  B/answick.  Sammaries  of  tbe  indirect* 
in  traneita  und  transhipment  trade  are  also  given,  with  an  aoticipAtory  siateaKQt 
of  the  imports,  exports  and  re-exports  for  Jane,  1869. 


IBCD] 


PUBLIC   DEBT   OF  THE  tTNITBD   8TATEB. 


223 


PUBLIC  DEBT  OP  TIE  UNITED  STATES. 

STATEMENT  COMPARING  THE  RETURNS  POR  AUGU8T  1  AND  SEPTEMBER  1, 1809. 


DEBT  BKABINO  OOIN  XNTXIlEflT. 


CharacUrcfiuiut. 
fc»  bonds  of  Jan  l,*69(15yrfl). 
*•     Jan.  1/61  (10  yre) 
6e,  B'dsof '«l  (after  Dec  JJ1,'80). 


fis, 
fie, 

69, 

6s, 


(Oregon  war)*  81 
"    ofJiinc..O,'«i(<»yM). 
Way  1,  tt  ,  (5-8u^B> 
Juue'63('fcl)      .. 
Mar.  1,  >)4  (i0-40'8) 
Nov.  1, '61  (5-20^8 
July  1,  *M  (6-«J 
Nov.  l,*6'i  (6-90 
Jnly  1,  *e?  (5  aO'B) 
July  l,*b8  (5-3^0 


44 

(( 

«t 
4* 


l*») , 

'8) 


Aug.  1. 

$j'\afO(X)o 

7,022,000 
18,4lS,0O 

im.uoo 

189,317,500 
614,771. »J0 

75  0  O.UUO 
19J,5«7,J«)0 
ia:i.44!J,800 
832,99a.U6() 
20:l,;^27,250 
879,5WJ,S50 

4i,699,:iS0 


Sept,  1. 

|»),(H)0,000 

7,0«,000 

18,415,000 

b4%000 

189,817  60) 

614,771,600 

76,000,000 

194,6fi7,800 

lH443,^y»» 

832,993,050 

a03,3i7,«30 

879,588,450 

42,589,850 


Increase.  Decrease 
$ $ 


•  •  •  • 


6,000 


OXBT  BXABINe  LAWl^L  XONBT  INTBRB8T. 


?fi,  Certificates  (demand) $50,810,000 

&e,  Navy  Pension  Fund. 14,000,000 


$SM20,000 
14,000,000 


BEST  ON  WHICH  INTEREST  HAS  eEABED   SINCE  XATURITT. 


e.  Bonds  of  1B6«,  *b7,  '68 

Ss,  Bouds  (tax  in<iem.)  1H64... 
Treaauiy  notes  prior  to  1857. 
since  1957... 
<S9,  C«rtiflcatcs  of  indebt'ess  . 
es,  Comp'd  Int.  notes  '67  &'6S. 

Temporary  loan 

'•309, 3  year  notes  ('67  &  '6S). . . 


$95,700 
:{4i,000 
1<>8,615 
888.2*22 
12,000 
8,785,910 
1»4,110 
993,:00 


•7'',860 
342,000 
103,016 
858  »B2 
12,000 
L714,9S0 
198,110 
966,620 


DEBT  BEABINO  NO  INTEB3BT. 


Demand  notes 

C  8.  i.e.:al  Tender  notes. ... 
Po«tal  «&  fractional  cnrrency. 
Gold  Certiacates 


$116,719 

85ff,UOO,000 

81,0:iO,3!iO 

8(>,725,849 


$114,914 

856,000,000 

80,711,800 

83,&17,680 


BECAPIT17I.ATI0N. 


Debt  bearing  coin  interest $2,107,981,300  $2,107,98C,300 

•*    b'rio^lawful money Int tt4,S10,OUO       64,7H),000 

'*    on  which  lut.  h  IS  ceased 4,790,^^7         4,648,487 

*     bearing  no  interest 433,872,359     410,474,393 

A^^epat 5  principal  debt $3,6OM0l,vl6|3,687,8S9,090 

OoiuimeresiaocMed 8l,*60,0<9       86,963,600 

Lawful  money  Int.  accrued l,2t»7,700        1,212,650 

liit.  accrued  on  matured  debt. 660,781  638,610 

AggtegatedebtAint.a:cmM $3,685,133,739$2,636,668,870 

Dedact  amoant  io  Treasury : 


5,000 


6,118,561 
4,8o0 


80.000 

$16,850 
'9,y2U 

•  «  «  •  •  • 

70,930 

1,000 

4;<.»5o 

$1,805 

818,600 
13,078,260 


80,000 

141,570 

13,R9S,5fl6 

18,5d!;,18(» 


I   «         •  B   • 


Coin  belonging  to  Goremm't $108,181,611 

(.'urreucy * .,  33,^)1,654 

biak't;fundiucoin,bMsftint 11,932,117 

Other  U.  S.  coin  int.  bonds  purehtsed  and 

accrued  i&tcrest  thereon 15,110,590 


$101,314,9?7 
12,144,487 
14,020,880 

38,811,066 


8,083,683 
8,300,475 


82,144 
8,468,869 


$l,9in,621 
11,887,167 


Total  coin  Acur'y  in  Treas'y $158,556,003    $150,691,360^     $. 

Debt  less  coin  and  currency $3,481,566,787  $3,476,962,601 


$2,861,688 
$6,604,836 


BONDS  IISUED  TO  UNION  FAOiriC  RAILBOAS  AND  BBANOHES. 


(Vnder  acta  of  Joly  1, 1862,  acd  July  '\  i^6t:  principal  payable  In  80  years  after  date,  and 
inlerest  semi-annnaJy,  in  January  and  July,  both  in  lawful  money.) 


K'-i  Tnion  Pacific  Railroad.. . . 
<i^  Union  Pacific  i£.U)  K.R. . 
f>^  Sioux  City  A  pAClflc  R.R. 

♦•N  Central  f^cUl':  B.  K 

*>«,  C«Qtr«l  Bran  h  (Kansas). . 
ti^.  Western  Pacific  K  R 


$26,&3.SO0O     $96,638,000 
6,903.000         6,a0:i,000 


1,628,830 

84,371,000 

1,600,000 

320,000 


1.688,820 

34,871,000 

1,600,000 

820,000 


Total  ajiountlMaed $60,860,820     $60,869,320 

5 


•  •*»«« 


«    ••       iS-* 


2!20  IB*  tiBOTT  yROBMtrnoKfl.  (r| 

curiency  and  to  put  the  tourniquet  on  tbe  money  ^^^^^  ^     ^ 
produced  bo  much  mischief  to  general  business  and^  ^,^     ^ 
of  such  magnitude  and  cruelty  on  our  mercantile  a^  %^  ^  f      ^ 
that  some  prompt  remedy  had  to  be  applied.    T)^  ^    ^  %      ^ 
tion   under  these  old  usury  laws  was  tried,  an^    %   %^  ^       ^ 
This  Tfcsu't  has  secured  a  popular  approval  ^orl^  ^^  ^%% 
have  never  had   before,  and  as  every  effort  ''^'  ^    ^        ^ 
failed  heretofore,  so    there    is  now   the  ^  $'  ^  ^        \ 
efforts  would  fail,  even  if  supported  by  tl  ^  ^  %  ^ 
punishments  inflicted    on    persons    ^^  q/%%   \   A 
would   have   been   objectionable  for;^  %%^^    V  *^" 
them  is  the  notorious  fact   that  %\  ^  ^  *' 

lock  up  money  have  not  been  i^  €  ^\ 
that  as  frequently  happens  itti  ^  ' 


proceeded  against   are   almo^  i  4 

over,  the  law  has  slumberedl^^  %  ^^        %    4.  "^  issM^ 

tion    we  believe  has  beec,  i  ^  %t 

and   moderate  forbeara^  ^^  I*  <  ^  ^^-^-Ckwci — 

exactly  the  great  princ?  I H  M  '  ,^        ^^     ,^S 

rather  than  the  severi  *  I J  ^  J^^-jg       ift«     ^jj^ 

Thereisno  ne«yj.|J^  ^-       ^       ».«     t^'-'^ 

.n  these  proceedmf-H  ^  U«u.p«<«.«P«;; 

govera  the  rate   '■  j^  ^^^^^^  ;inet,.«ven c-toM di.mc«. re,^- 

the  great  law*  |  ?  _  ^„  ^^^  ^^^^  ^^^  ^^  ,^  ,y,^„  prioeip.!  to..t.« 

elsewhere.    V  f  States  have  trade.    From  ihh  uble  Ike  W'"'"* " 

inapplicable''  _^ 

thousands  c  .J»p?^       J^i       h€ 


|i3,o-.6  533      •le.^'^ifi 


of    a   tigh''  • 8.SJ.;65  2.gv2l9  ^'j., 

o  ,4rloa 85388  S*^-   a 

remedy*      -•; ".',2  8  ejjj^      iij;.5r^ 

/          .toRioo 10,919,113  l.n5,S2  ^'lOjP 

As    thf         Indic« 844,2-34  733^  / 1-' 

,                  /Japan 927,991  l.a«,«;8  j-j;.^ 

likely     2,741,8S53  3949.610  1^^^ 

^^^t    >*rsr and  Bremen 1.971.347  4,ll3,<»o  ^.v 

COnf'/ J 8,3«,168  41S,651  ^^ 

rep /Id  addition  to  tbe  foregoing  the  report  contains  comparstiTe  fltateiwn'9  ^''^' 

jog  tbe  number  ijnd  tonnage  of  vessels— dlatin^oishiog  tHeir  Daliofla'iiies-*'^^^'' 

f  tfotend  into  and  cleared  from  Great  Britain  in  the  five  mooths  ended  M^J^^ 

/  of  the  rt'spective  jears  1867, 1868  and  1869  ;  the  net  receipts  in  Gft»l  ^ ''*^'' 

/     from  etarnp  duiits  during  each  of  the  ten  years  ended  May  31,  trom  lf^5 '° 

/       1668  ificlusive;  exports  from  tbe  ports  of  Qaebec  and  Ontario  lor  ibe  ^^ 

/         years  1867  and  1868;  exports  to  tbe  OniteJ  States  and  total  exports  ft  ®  ^* 

/  several  provinces  in  the  fiscal  year  1868  ;  the  value  of  Imports,  eipori3»"^^ 

amour  t  catered  forborne  consumption;  ftnd  also  the  amount  ot  dwy  wllecl*^ 

/  at  each  port  in  Nova  Scotia  and  New  B.-unswick.    Sjinmariea  of  \L'^^^^^ 

in  traneitu  and  traDshipment  trade  are  also  given,  with  an  anticipator  sn    * 

of  the  imports,  exports  and  re-exports  for  June,  1869. 


^                              niBUa   OBBt  0»  T^j   tTRITKD    BTATE9.  223 

't.   \^  ^  DEBT  OP  -^TIB  DNITED  STATJSS. 

%  ^<H^.       ^j.  '  UBTUIC^jj  FOR  AUGUST  1  AND  BBPTBMBfiR  1, 1SG9. 

•^-^  ^       ^<t  '^  '^BVirO  OOXN  INTBXUC8T. 

'     ^  *^      ift^        ^                                       Aug.  1.          Sept.  1.  Increase.  Decrease 

<  ^       <!  ^  *=ifc.  $1i',OiOOOO     $9iVHX),000       $ $ 

r.^'^        <4.  %►   %.  ^^  '500      189,81760)  

^  ^^%^  ^      %<%^  ^  76,000,000  

<^^  ^^     ^  ^*9    ^<L^  ^  X44S,^WI  


$lfi,850 


^     ^.     -g,  ,j15  104,fil5 

^     ^-5-   ^  ..>y.2i2  858  SSi 

V  12,000  1<,000 


>        ^  "^  "^  'l»?2r?     ^*i?    ^1^20 


'*>       ^  2,785,910  2.714,980  70,930 

♦  '  '^  184,110  183,110  1,000 

*^     ^^                                                    ...  9«8.v00  956,560 4;*.95o 

>,      ^                                         A*  BXABnre  ko  intebsbt. 

' -^y                                           $116,719  $114,914  $1,805 

35«,000,000  856,000,000 

J 31,0:«,3'»0  80,711,800  -. 818,600 

86,726,840  83,647.680  13,078,-2(l0 


:/ 


BSOAPITULATIOK. 

.Q  Imter «8t $2,107,931,300  $8,107,98C,300  6,000         » 

,yrtt\moa«ylilt tt4,810,00O       64,7bO,000  30,000 

.chlutliiftCCas'd 4,7«0,n^7  4,648,487  141,670 

.111.4  no  interest 483,872,859     410,474,293  ^....    13,«93,566 

^.epit;  principal  debt $2,601,40 4. vl6|2,587,889,0e0  18,665,180 

^aiaierefltaocried 81,-60,0i9       86,964,600     6,113.661  

Uwfal  money  Int.  accrued 1,*J7,700        1,?  12,650  4,850  

Ibtaccraed  on  matured  debt. 660,781  638,610  32,144 

Agg,eg»tedebt&iiit.acciu'd $2,685,122,739$2,626,668,870       $ 8,468,869 

Deduct  amoaot  io  Treasary : 

ColnbelonfffngtoGoTemm't $108,131,611    $101,314,937         $L91ff,G21 

Curreucy 83,.idl,654        12,144,487  11,237.167 

fiiJik*i;fundincoln,Vd8Alnt 11,932,147        14,020,880     9,088,683  

Oiber  U.  S.  coin  int.  bonds  parehised  and 
Kcraed  ictcrest  tbereon 15,110,590        33,811,065     8,200,475         

ToulcoInftear^inTreas'y $158,556,003    $150,691,360,     $ $2,861,6^ 

Dfcbt  less  ooln  and  currency $1^481,666,737  $2,476,962^         $5,604,236 

BONDS  I18UED  TO  UNION  FACIHC  BAILBOAD  AND  BBAN0HX8. 

(Under  sets  of  Joly  1, 1862,  and  July  -\  n6(  -  principal  payable  In  80  years  after  date,  and 
loterett  seml^annaaily,  in  January  and  July,  both  In  lawful  money.) 

6«,nntoaP»ciflc  Railroad $26,63^000     $26,638,000 

ff*.  Union  Pacific  cE.U)R.R 6,80:5.000         6,803,000  

Ca.SiOttxCityAP«clflcR.R 1,628,820         1.628,820  

''^tj^HtlWJ'a^cE.tt 24,:i71,000       34,871,000  _ 

5f*S^otnI  Branch  (Kansas) 1,600,000        l,60O,C0O         

^' N'ensmFteUllciiS 320,000  820,000         

'^^V^ajumnt  issued $60,860,820    $60,860,820 

5 


•  ••'»«'* 


226  RAILBOAD  ITKM8.  [SepUmbtr, 

Being  an  inerease  in  tbe  state  debt,  witfaiD  16  mootha  of  f7^4Y,09S  17.  1TiiiB)li?Qr. 
able  exhibit  baa  occaeiooed  con* iderable  diBtorbanoe  among  tbe  holdera  of  the  botdi 
of  (he  Stiy^e  here,  upon  the  reports  that  a  party  in  iavor  of  repndiatirg  the  new  bonk 
was  forD> lug  in  the  State  upon  the  theory  that  the  State  Cooctitotkio  forbkbtle 
tale  of  the  bonds  of  tbe  State  at  1«>bs  than  par,  while  tbe  greater  portion  of  these  cev 
bonds  have  been  sold  at  from  6C@70  per  cent  by  the  railroads  in  order  to  niie 
money.  The  present  condition  of  the  State  ia  lamentable,  bnt  any  talk  of  repodiatka 
in  any  form  will  no  doubt  be  votrd  down  by  the  citizen^  wbohaTeetru^ledsoiDu- 
foHy  to  eustain  tbe  credit  of  the  State  in  the  past;  and  holdeta  of  the  bnodf.vbo 
bougbt  them  knowing  that  the  faith  of  the  State  was  pledged  for  th«r  p«ymet.t,viU 
DO  doubt  ultimately  be  paid  in  fuIL 


KAILROiD  ITE18. 

The  Tbhuantipio  Railway. ^On  the  6th  of  October,  1867,  ft  grant  cr  eooeemoD 
for  70  years,  to  open  and  operate  a  railway  between  tke  Q.uli  of  Mezioo  and  t}w 
Pacific  Ocean  w»8  mede  by  the  Mexican  QoTernment*  and  fully  confirmed  and  apfHored 
in  December,  1868,  by  tbe  Mexican  Congreas,  and  in  Januftry,  1869,bytbePreci. 
dent.  -  This  grant,  after  due  assignment  according  to  law,  ia  owned  by  (heTefei 
antepee  Railway  Company,  of  which  Mr.  Simon  Stevena  ia  tbe  Pireaideot.  Meesn.  D. 
Appleton  A  Go.  have  recently  pabliahed  a  handaome  little  toIqom  of  aome  SSO  psfcs, 
giving  the  history  of  the  grant  from  the  Mexican  Gk>vcnimeDt,  and  ita  poassssi  m  bj 
the  preeent  company;  a  foil  deecription  of  the  characteristics  of  the  proposed  rsote: 
an  estimate  by  Mr.  Julina  Adao^a,  Civil  Engineer,  of  the  total  coet  of  tbe  road,  ^ . 
a  hiatorical  sketch  of  the  country  through  which  it  paaaes;  and  the  atatiatics  of  eoa:- 
merce  and  travel  which  ahow  the  traffic  that  may  reasonaUy  be  expected  on  the  nil 
road  when  completed.  The  proposed  route  is  162  milee  long,  and  the  entirs  coit 
of  road, equipments,  building,  Ac.,  is  estimated  at  $8,828,000.  In  our  limits  spia 
it  isimpoesibletogivea  foil  review  of  this  interesting  and  important  volame,sad 
we  recommend  all  our  readers  who  may  desire  to  obtain  information,  of  what  tetm 
in  all  probability  to  be  the  next  route  acroaa  the  Gontioent  to  procure  tbe  book  froo 
Mr.  Simon  ^Stevens,  Preaident  of  the  Company,  174  Chambera  street. 

PoxT  Huron  and  CmoAoo  Railxoad  Lnne. — Tbe  work  on  thia  line  ia  bnag  posfa«i 
forward  eastward  from  Battle  Creek,  and  weetward  from  Port  Huron,  and  imo  a 
constantly  going  forward— more  than  2,600  tons  having  been  shipped  dnw  tb< 
paat  mcnth.  Enirinee  and  care  are  already  oo  the  line,  and  others  are  now  briog 
manufactured.  At  the  present  rate  of  progress  the  road  will  be  complete  from  Pen 
Huron  to  Flint  (66  miles),  and  in  operation  in  aeaecn  for  the  fall  boamess  this  j<ir, 
and  through  to  Battle  Creek  before  January  lat. 

Westward  of  thia  point  the  road  ia  ready  for  the  auperstmcture  and  track  bjiag 
will  follow  in  due  coorae. 

Thia  line  ronopriats  four  roada,  viz.,  the  Port  Huron  aud  Lake  Michigan  Railred 
the  Penineolar  Railway  of  Michigan,  and  tbe  Peninsular  Railroada  of  Indiani  uxi 
Illinois,  running  from  Chicago  to  Port  Huron,  and  there  coonectiog  with  both  tbe 
Grand  Trunk  and  Great  1^'eetem  Railwaya  cf  Canada,  for  Buffalo  or  Sosprcdos 
Bridge ;  thence  over  the  19ew  York  Central  or  Erie  road,  making  the  shoe t«9(  of 
4he  through  routes  between  New  York  and  Chicago. 

In  addition  to  ita  through  travel,  the  local  business  of  the  line  most  be  vciy  )tfp' 
The  western  part  of  tbe  route  is  through  an  agricultural  district  aa  rich  ss  sot  io 
the  West,  and  it  peases  msny  laree  and  proaperoua  townr.  The  eastern  portico  vtU 
transport  the  lime,  salt  and  gypsum  from  the  Grand  River  and  Saginaw,  sod  i: 
brioga  within  reach  of  a  market  the  vast  forests  of  pine  and  hard  wood  timber  vbidi 
«si»t  in  this  part  of  Central  and  Northeastern  Michigan. 

Better  than  all,  the  line  is  in  the  hands  of  shrewd  an  J  practical  men,  who  kn^v  ^^ 
to  push  through  such  an  enterpriae,  and  who^  knowing  how,  are  detcrraiosd  to  do  «• 
^^Railroad  JournaL 


1869] 


RAILROAD   ITEMS.  227 


Ths  MxMPHiB,  El  Paso  and  pAOino  Railroad.— TbiB  important  line  of  railway 
is  DOW  in  progress  in  the  State  of  Texas,  and  is  destined  to  form  a  part  of  the  grea't 
throns^b  line  of  road  between  Vorfolk  on  the  Atlantic  const  and  ;^an  Dift^o  on  the 
Pacific.  In  ad  ition  tq  the  p'irtion  of  the  road  from  N^orfolk  to  the  Mi^siisippi  River 
"^  inch  has  long  been  in  operation.  160  miles  of  the  Memphis,  El  Paso  and  Pacific 
Roid  in  Texas  are  nearly  completed,  and  contracts  are  about  to  be  made  for  the 
^ond  section  cf  150  miles,  with  the  requirement  that  it  ehall  be  completed  by 
October  1,  1870. 

A  great  irjastice  was  lately  done  ibis  company  and  General  Fremont,  its  agent 
io  Paris,  by  statements  in  the  N.  Y.  Times  to  the  effect  that  General  Fremont  had 
made  false  representations  as  to  the  condition  an  1  property  of  the  company,  in  a  prof- 
p<rctu4  issued  in  Paris,  and  had  thus  brought  it'  bonds  into  disrepu'e.  The  real  facts 
of  the  case,  however,  appear  in  a  letter  of  Mr.  Edward  Gil'^ert,  counsel  for  the  com- 
pany, which  was  published  ii  the  Times  to  correct  the  erroneous  impressions  given 
to  the  pnblic  by  its  previous  article.    Mr.  Gilbert  says: 

Ynnr  editorial  notice  of  the  3d  Inst,  respeoting  Qeoeral  Fremont  and  the  Memphis,  El  Paso  and 
Pacilic  Railroad  Company  in  Paris  does  both  the  General  and  Company  injustice,  by  making  them 
re^}^»n»ible,  impliedly  at  least,  for  the  publication  of  tlie  prospectus  referred  to. 

Nt^ither  the  General  nor  the  officers  of  the  Company  had  anything  to  do  with  its  publication. 

Tbe  statements  in  that  prospectus  were  doubtless  attribuitable  to  a  want  of  distincti  m  in  tho  minds 
ot  its  authors  In  France  between  the  action  of  our  General  Government  and  that  of  one  of  the  .States. 

1  be  3Iemphi8,  £1  Paso  and  Pacifio  Kailroad  Company  was  incorpomted  by  the  State  of  Texas  to 
bnild  a  railroad  through  that  State  upon  or  near  the  thirty-second  parallel,  which  road  it  is  now 
ercriijgred  in  oonstnictinir.  It  has  a  land  grant  from  the  State  upon  which  its  bonds  are  based.  These 
\i»mU  liave  been  sold  in  Europe.  They  are  in  the  ordinary  form  of  coupon  bonds,  and  show  upon 
their  face  how  they  are  secured,  and  what  obligations  the  Company  assumes.  No  oonstruction  bonds 
have  ever  been  offered  for  sale. 

The  representations  made  by  the  Company,  and  by  General  Fremont  In  its  behalf,  are  in  writing, 
and  are  scrupulously  and  definitely  correct  in  every  particular. 

1'he  negotiations  abroad  were  committed  to  persons  versed  in  that  kind  of  business,  and  residing 
there,  and  havel>een  attended  with  such  results  that  about  one  half  of  the  entire  issue  of  $10,000,000 
ot  !uDd  bonds  have  been  sqld 

Tho  proceeds  are  being  applied  as  needed  in  the  construction  and  eqtiipment  of  the  roa'l,  which, 
frcm  the  methodical  and  economical  organization  and  management  of  the  Company,  promises  to  be 
buiU  and  put  in  operation  with  more  despatch  and  less  waste  than  any  other  nulroad  in  the  United 
butes. 

The  ormpanv  is  apparently  sure  to  obtain  the  right  of  wa^  to  the  Pacific  at  the 
next  cession  of  Consres?,  and  may  probably  obtain  a  i;rant  of  goyernment  lands  (in 
addition  to  the  grant  alrea'^y  made  by  the  State  of  Texas)  whenever  application  for 
^uch  a  grant  is  made.  It  is  the  clearest  policy  in  the  world  for  ths  government  to 
grdot  lands  on  the  line  of  a  new  railroa  1  through  its  Territories. 

Lake  Shore  A  Miohigae  Routheen  and  Toledo.  Wabash  and  Westebn  Con- 
solidation.— The  New  York  Trihune  says  of  thii :  The  consolidation  of  the  Litte 
Shore  A  Michigan  Southern  R  >ad  has  been  agreed  up  'n  and  attracts  general  interest. 
By  this  arrangement  the  Michigan  Southern  e.xteni8  from  Buffalo  to  the  Mississippi 
Kiver,  and  control  %  includini^  branch  lines,  1,600  miles  of  road.  The  ba«is  of  c<  nsoli- 
Hation  is  made  at  120  for  Michifran  Southern  and  100  for  Toledo,  Wabash  <&  Western. 
Th<i  stock  of  the  Toledo  A  Wabash  Road  does  not  receive  any  divideniis  this  vear, 
but  after  the  first  of  Jaouarv,  1870,  will  receive  the  sa'oe  amount  that  is  now  paid  on 
the  Michigan  Sonthem.  The  manaa^ers  of  the  property  claim '  that  wi  bout  any 
increase  of  earnings  the  property  will  pay  8  per  cent  on  its  new  capital  after  provid- 
irig  f  .r  the  interest  and  sinking  fun  1  accounts.  The  stock  and  bonded  debt  of  the 
coQBolidated  company  will  then  stand  as  follows  : 

Present  stocK  of  the  Take  Shore  &  Michigan  Sonthem $35,000,001 

Tw.^ny  per  cent  to  be  aided 7,fKX),000 

Tu'e'lo.  Wabir>h  &  Western  stock 8.000,000 

Bocd^d^ebtofthe  lake  Shore  <£>  Michigan  ^oathem 90.000,000 

BjDdel  debt  ul' <  oledo,  Wabash  A  Western 15,000,000 

Total $35,000,000 

The  consolidated  company  will  have  on  hand  a  lar>re  amount  of  assets  transferred 
by  the  G  eveland,  Painesvdie  <ft  Ashtabula  Riilr'>ad  Ci'Upany,  the  Cleveland  dc  Toledo 
and  the  Lake  Shore  A  Mich  gan  Southern  Railway  Co.;  also,  about  $50  ^OiO  cash 
assets  from  ibe  Buffalo  A  Erie.  The  consolidation  will  go  into  effect  as  so  m  as  it 
has  received  ttia  asaent  of  tho  atockholders.    Notice  was  given  at  the  Stock  fizchange 


228  RAILROAD  rrsMS.  \Sepiimher, 

ibis  moroiDg  by  tbe  Lake  Shore  A  Michigan  Southern  Railroad  Company  tbit  to 
thirty  days  they  will  issue  f  1,200,000  new  stock ;  this  stock  is  for  tbe  additknl 
equipment  necessary  for  the  new  conaclidated  company,  and  ia  included  in  tba 
186,000,000  stock  which  the  company  contributes  to  the  new  company. 

Albaitt  AMD  SusQUBHANKA  RAiLaoAD  BoviM. — Wr,  Bamscy,  Preeident  of  tiLis  Tt»d, 
in  a  letter  to  the  New  York  Time$,  girea  tbe  following  history  of  the  negotiations  b 
regard  to  bonds  and  stock  : 

**  There  has  been  no  attempt  on  mr  part,  or  Mr.  Phelpa',  the  Secretary  and  Tresh 
nrer,  to  pr<>vent  the  transfer  of  stock,  nor  is  there  any  truth  in  the  statement  that  I 
issued  8,000  abarea  of  new  stock  with  reference  to  the  coming  ejection. 

The  isiue  of  stock,  and  which  baa  been  tbe  pretext  for  thia  raid,  was  io  parsosoee 
of  a  contract  road«»  more  than  a  year  ago,  aod  with  the  unanimous  approral  of  tbe 
Board  of  Directors,  as  follows  :  1'bere  had  been  about  six  thousand  shares  of  itock 
subscribed,  upon  which  one  or  more  installmenta  of  ten  per  cent  paid,  and  nibK- 
quently  forfeited  for  non-pay meot  of  the  balance.  It  waa  suggested  that  other  stock 
might  be  issued  in  its  place,  and  a  portion  used  in  the  negotiatioa  of  tbe  sf  cond  bosdi 
of  the  company,  snd  with  what  had  been  received  and  would  be  in  the  sale,  woaM 
make  it  nearly  or  quite  full  paid  stock.  Accordingly  the  first  fasoe  of  this  etoc^  vti 
made  by  Azro  Chare  (one  of  tbe  parties  now  acting  with  Fisk  ^  Co.),  vho  took 
g50,000  of  tbe  second  bonda  of  the  company,  with  an  option  to  take  $10,000  stock  at 
20,  that  beirg  tbe  then  market  price  for  full  paid  stock.  The  stock  was  takes  by 
Chase  and  paid  for  at  that  price.  After  this  and  in  the  spring  of  1868.  tbeoompaoT 
having  failed  to  obtain  an  appropriation  from  tbe  Legialature,  relied  upon  to  eomolctc 
the  road,  an  effort  was  mz'ie  to  negotiate  or  obtain  a  loan  opon  the  secon  i  bo-  ds  c^ 
tbe  company  to  obtain  money  for  that  purpose.  Negotiitioos  were  opened  wiUi  Xev 
York  parties,  w^^'ere  I  found  it  waa  known  that  tbe  company  bai  tbe  r^t  to  iane 
Btcck  m  place  of  the  foifeited  stock  aforesaid,  and  had  done  so  to  Chase.  A  propoa* 
tion  was  finally  made  by  David  Groest>eck  and  others  to  loan  the  rompsnyforeight<ec 
months,  70  per  cent  or  1660,000,  on  |8i  0,000  of  the  second  bonds  of  the  compisj. 
with  tbe  privilege  or  option  ot  taking  £0  per  cent  or  2,40'*  shares  of  aaid  stock  st  S5 
(being  only  one-half  the  smount  in  proportion  to  what  f^base  had, and  at  5  cents rmr 
price),  aod  in  case  the  stock  was  taken  at  that,  the  partiea  were  to  take  tbe  boods  at 
80,  within  one  year,  if  not,  the  company  were  to  have  aiz  months  further  time  to  paj 
the  loan  and  to  aell  or  hypotbecate  the  boods  aod  stock  for  that  purpose  Tbii 
proposition  was  accepted  and  tbe  parties  subeeqoeotly  elected  to  take  the  U^ndsaod 
the  stock  at  price  agreed  upon,  aod  have  fully  paid  for  the  same. 

St.  Louib  and  Irox  KoimTAur  Railboad.— The  completion  of  the  aboTs  roid 
DOW  makes  a  Tery  important  through  route  between  St.  Louie  and  the  Sontbers 
States  East  of  tbe  Mississippi.    Tbe  Wutem  Railroad  Oaaette  ^aye : 

Bv  thia  new  route  the  diatances  from  8t.  Lonia  to  the  following  towns  of  tfac 
Sonth  and  Southeast  are  aa  followa : 


Miles 

Belmont IflS 

Jfickson,  Tenn ••...  V8t 

Hemphl« 847    ^_^ 

JftCki'OD,  Miss 6401  m&Dta ..•® 

VIck«>hnrf 686  |  Mucod ^ 

New  Oileons TiS  i  Aofusa ^ 

Mobile <»T   ttavanaah SSJ 


Nsahville »n 

CbHttanooea  f via  Corinth) S^ 

Obaiianooga(vlaNashvUte) ^ 


A  tranafer  bmt  baa  been  obtained,  and  river  approarh.'S  prepared  at  Golambos  asd 
Belmont,  po  that  passenger  and  freight  cars  can  b  ^  taken  over  the  river  as  (bej  *** 
at  Detroit  and  St.  Louia,  and  were  until  lately  st  Dubuque,  Burlington  snd  Quincr. 
Only  one  railroad,  tbe  Mobile  and  Ohio,  reaches  C  du^nbas,  but  this  ooe  with:n  a»boft 
distance  connects  with  others  to  Nashville,  Memphis  and  New  OrUans,  whicb  bj 
their  connections  make  nearly  every  railroad  in  the  South,  east  of  the  Ui»»>^ppi 
river,  accessible  to  cars  from  8t.  Loui^ 

Pbnnstlvakia.— The  .Allegheny  Valley  Rail oad  is  said  to  travsrse  one  of  tfa« 
most  pictureeqne  regions  of  Pennsylvania.  The  railroad  bridg<»,  now  in  procfs*  of 
erection  at  Venango  City,  connecting  the  Oil  Creek  and  Allegheny  with  I  be  Vsllff 


1869] 


RAILROAD  ITSICB.  229 


line,  will  be  fioiahed  toward  the  close  of  the  fall  months.  The  Keystone  Bridge 
Company  are  the  builders.  The  etructare  will  have  three  spans  of  12*>  feet  each. 
The  estimated  cost  ie  $100,rO-*.  The  requisite  legisIatioD  authoriziog  thp  extension 
of  the  road  to  the  west  branch  of  the  Susquehanna  h  ▼  ng  been  obtained,  steps  have 
been  taken  for  the  early  and  vigorcus  prosecution  of  the  work.  The  surveys  of  the 
route  are  nearly  completed,  and  at  several  important  points  ground  has  been  broken 
for  the  road  bed.  The  projected  line  is  located  along  the  valleys  of  Mahoning  Creek 
aod  BcDt)etl*s  branch,  and  connects  with  the  P  iladelphia  and  Erie  road  at  Emporium. 
The  grades  will  be  easy,  not  exceeding  twenty  feet  to  the  mile.  The  mst^rial  aid  for 
the  exteoaion  his  been  obtained  upi  n  terms  highly  advantageous  to  the  State.  The 
CofDmunwealtb  receives  for  $6,600,000  worth  of  bonds  for  the  Philadelphia  a?  d  Erie 
road,  not  payable  till  1912,  an  equal  amount  of  the  bonds  of  the  Allegheny  Valley 
road  L'uaraoteed  by  the  Pennsylvania,  Northern  Central  and  Philadelphia  and  Erie 
OompaDies,  payable  after  1875,  at  the  rate  of  $100,0  0  per  annum. —  Western  Rail' 
toad  Gazette, 

CoNHicTiotrr  A  Passuxpsic  R.R. — ^Tfce  receipts  from  operatioos  for  the  fis  al  years 

ending  May  3 1   1868  and  1869,  were  as  follows : 

1898  1869. 

From  pa??engers $170,174  10  $177,346  47 

Frora  ffriL'hte 802,41?  55  8.3U  519  64 

Vrom  m  iTs 11,160  09  11,117  00 

Fam  express 4.M60  00  6,00  00 

Krcm  rents 4,107  90  4  3<J3  97 

Tftal $481808  70  S5?«,847  08 

Expenses $319,894  46  $337,168  95 

Set  earnings  .1 $171,914  M  $192,184  13 

A  comparison  of  the  earnings  of  the  past  with  those  of  the  preceding  year  shows  an 
iocrease  of  $47,638  88 ;  with  an  increase  in  expenses  of  $17,268  49 — making  the 
iocrease  in  net  earnings,  $20,269  89. 

Ogdrnsdurq  AKn  Lask  Champlain  Raileoad. — The  earnings  of  this  road  for  the 
y^ars  ending  March  81, 1868  and  1869,  were  as  follows  : 

1668.  1869, 

Prom  trci  ht $701,462  88  $849,474  60 

"     pu-pcng  rs 17«,2i7  9*»  171,883  99 

»'      u.ail  10,710  00  1071000 

"     fcipresa        4,»9i*  91  5,0  0  00 

"     rettis 7,«95  62  8,158  11 

'*     use  of  engines 585  00  

Total $898,930  70      $1,015,22170 

Eipciaes $597,-.8S  18         $0:8,:i82  46 

Ket  earnings $801,74-2  53        $356,839  84 

From  which  has  been  pai  i— 

One  dividend  of  i hree  per  cent  on  the  common  stock $93,810  00 

Two  dividends,  foar  percent  each,  on  the  pi  efcrred  stock 95,104  (K) 

One  ytarV  luUTefit  on  first  morrg  gf.  bunds. I^A,4(U  54 

On<>  yea 'a  interest  on  eqiipmen*  boods 2 «, 000  00 

Revoune  t«x  on  d  videnUs  and  c  apons 10,5''0  70 

BriiL'e  timbe' on  hand 7,4  «  69 

New  locomotive 12,032  89 

$306,942  88 

^^  Ket  earnings  Afril  1.1869 $20^,»22  55 

Jj^t  carnlnKs  ou  hand  Aptill,  1888 180,89181 

tMuium  on  preferred  stock  sold •   .. 2^134  82 

Totil $515,864  77 

Compared  with  the  previous  year,  the  gross  earnings  show  an  iocrease  of  $146.241 ; 
^ilh  an  increase  in  expense^  of  $91,144  28,  making  the  increase  in  net  earninga 
I&5,H96  72.     The  report  says : 

/I b«  Urfve  expenditure  upon  the  road  bed  aid  track,  which  it  was  deemed  j  idi- 
cions  to  make,  has  added  about  fifty  thouaai id  « loll >iis  to  the  expense:*  ;  a  similar 
^x  enditure  wdl  be  necessary  th<4  ensuing  >ear,  afer  which  the  track  will  probably 
Acquire  only  the  ordinary  renewals. 


230 


RAILROAD   ITEMS. 


[Sepiaahery 


The  1800,000  of  equipment  hoods  issned  a  year  ago  hare  bceo  inveited  b 
rolling  stock,  by  the  buildiDg  and  purchase  of  827  freight  cars,  8  pasocoger  car?,  ind 
4  locomotives, 

1  he  requirementB  of  the  road  are  ench  that  the  boird  have  decided  to  make  a 
Btill  further  issue  of  bonds  to  the  amount  of  $200,000,  to  procare  additioo  I  rniliag 
stock,  for  all  of  which  we  shall  have  ample  use  ;  and  with  this  addition  we  shali  \au 
one  of  the  most  completely  equipped  roads  in  the  country. 

The  wisdom  of  the  eKpeoditures  alreaiy  made  in  butldiog  the  elevator  and  for- 
nisbiD*;  roliinsr  stock,  is  clearly  demonstrated 

Since  we  we  took  poesessioo  of  the  road  io  Angust,  1865,  we  have  pud  to  tks 
stockholders — 

Nine  per  cent  dividend  and  tax |»^.«T«(« 

Dividends  om  I  referred  stoik  and  tax i:'7.0«»'0 

Interest  on  l»t  mortgage  bonds  and  tax S)i5.<}i>(it 

In  terebt  on  equipment  Don;  sand  tax 2\««i>OU 

Tui' fornew  brid  e* EO,000ft» 

Prtid  on  account  of  the  elevator rs.tmoo 

Paid  for  new  iron  ana  ti- 8 4nftti>i« 

bOTplus  of  profits  on  hand &Ue,?22S 

Total |l,<I%ai» 

This  amount  has  actually  been  paid  nut  of  the  earnings. 

There  remains  outstan  iing  of  firi^t  mortgage  bonds  $605,700  ;  they  matore  ii 
July  next,  and   the   money  is  in  the  Treasury  to  pay  theoi. 

$8,040,900  second  mortgage  bonis  have  be«n  converted  ii.to  stock,  leaving  o".t. 
standing  136,100. 

$1,994,000  preferred  stock  has  been  issued  to  provide  for  the  payment  of  (he  first 
mortgage  bonds  and  equipment  purposes,  and  the  accoontis  closed;  as  will  beNeo 
from  the  financial  statement,  $28,184  22  has  been  received  f.r  premiums  on  tbe  same. 

TaiAL  BALANOB  MAaOH   81,  1869. 


CostofroHd.      ^$3,071,9 JO  DO 

Eqn  pmcnt  parchased  by       .... 

Joauof  1668  800.000  00 

Bll  s  rcce  vable 16,210  22 

>  or .  hern  T ransportatlon 

Co   Block 80,000  00 

tf  uteri  id  on  hand 735f)S  80 

Fuel 72,2H4  68 

Real  estate, wood  lots, &c... 45,857  15 

Sundry  accounts 47,53S  Oi 

Cash  and  due  from  other 

roads 618.400  57 


Total $(Js274,»tf  64 


Oaplt  Utoc'r ..^ t8,OIO,Wro 

Preferred  stock 1,«94.»«00 

First  morrgtfce  bonds    OOO.'tnO  (V 

-«•  cond  mortgage  bonds    S^.IOO  <iO 

BHspyabl^ M,000® 

Coaponsdne    4,111* 

Unp  ]<t  dividends 4,59:>(» 

Equik  ment  bonds  of    Janoa* j, 

iS^S S0O.OTO0O 

^'undry  accounts 18.971  "I 

Nete  rnings 808.93  » 

ToUl $5,t74,^U 


— Tbe  In  'ianapolis,  Bloomin^ton  and  Western  Railway  has  been  formed  by  tte 
coosoli  ation  of  the  Indianapolis  and  Danville,  and  the  Danville,  Urbana,  Bloominctoo 
and  Pekin  r  ads.  This  'on  olidatio-i  was  compleind  on  the  20th  inst.  by  a  vote  ol 
the  stockholders  at  Urbana.  A  mee  in^  for  the  elecUoo  of  officers  will  be  held  is 
Urbana  September  8. 

The  present  condition  of  the  road  is  described  as  follow^: 

'*l'wo  hundred  and  four  miles  of  the  road  are  rompletel ;  from  Ind  ianapolis  to 
Crawfo'-di'ville,  forty-two  miles,  and  so  much  work  has  been  done  between  Danville 
and  Pekin  that  all  tbe  track,  except  thi  ty  miles,  will  be  ready  f«ir  tbe  iron  in  three 
weeks.  The  managers  will  push  he  work  rapidly,  and  iuteoc  to  have  the  can  ruo- 
Din<?  through  before  a  year.'* 

New  Yobk  Crrr  Railroads. — The  following  are  the  returns  of  gross  receipts  made 
by  the   following  c  mpanies  during  the  m  nth  of  July,  1869  : 


Second  Avenue $59,497 

Ihirri  Avenue 121,4«4 

N  Y,  Ila- It  m  &  4th  Ave 91,021 

SUh  Aven'-o 5I,G0< 

Seventh  A v  nuo 55,'5'i 

Ei^h'  h  A  vonue 70.762 

Nluih  Avenue 10,491 


T  nth  Ave  <^  P.N  &  BRiver $«»749 

4'M  ttree- and  Grand  street 

Bletrker  ft  &  Pniton  -  erry SS,S» 

Dry  Dock.  B  B'wa)  A  battery fi7.T«J 

Hu  iaou  RlvtT Jl«,l« 

New  Yora  &  New  Haven m^ 

Total ^n,4B 


1869]  RAILROAD  rrsMS.  281 

Earninos  of  thv  Ba'OKLTK  CiTT  Hailroads. — TliB  foUn^iog  arethe  receipts  of  the 
different  railroad  compaDies  io  Brooklyn  for  the  mooth  endiog  Jaly  16tb,  18':9  : 


Van  Braot  K  A  Brie  Bii8in •*«.  $2,976 

B'kl jn,  Path  A  Conry  Island 7.9S6 

Coney  IsUnd  and  Brookly  a 91 ,874 

Sac«ett,  Hoyt  &  Berit en  ete IJ'ttt 

Itrooklrncity  A  Newtown 14,106 

Buebwlck  Avenue 7,tt78 

Grand  a  Ferry  A  Middle  YU*e 8,818 


Grand  street  &  Newtown $8,139 

Hoathsid* 23,200 

Brooklyn  City        111,922 

B'klyn  Citv  Sa  Hunter's  Point 18,840 

Brooklyn  &  Rockaway 7,504 

Coney  Island  &  Shell  Road 474 

Broadway 18,200 


l5TEKirAL  Rbyikub  Dsoibion.—- Pnymm^  of  Taxes  by  Corporations, — ^Tbe  Commis- 
fcioaer  of  loteroal  Reveoue  has  ma:e  the  foliowing  decisioo : 

Wa»bington,  August  10, 1869. 

"It  haa  bfen  reported  to  this  office  that  railroad  coinpaDiea,  canal  cumpanide, 
banks,  iDsurance  companiee  and  other  corporations  require  1  by  law  to  witbhuld  and 
pay  over  to  the  United  States  a  tax  of  five  per  centum  upon  tbe  dividend?,  interest 
coupons  representing  ioterest,  surplus  and  contingent  fon^9,  profit*  us  d  for  construe- 
ti  'n,  Ac,  are  accustomed  to  treat  the  amounts  thus  withheld  ;and  paid  aa  an  expense 
of  business,  and  to  deduct  them  in  all  returns  where  <  zpenses  of  business  are  de- 
ductible. 

"  Tlsis  practice  is  erroneous  and  should  not  be  allowed.  The  amounts  thus  paid  are 
not  an  expense  of  business.  No  such  returns  should  be  accepted  until  thct  assessor 
is  crnvinced  no  deduction  of  tbis  kind  has  been  made. 

**  Former  returns  should  be  carefully  re  examined.  In  all  cases  where  there  has 
been  such  a  deduction  within  the  fifteen  months  immediately  preceding  its  discovery, 
there  should  be  a  re-aasesament. 

'*  0.  DxLANO,  Commissioner. ' 

—The  Atlantic  and  Oulf  Railroad,  Central  Railroad  and  Bankiog  Company, 
tbe  Southwestern  and  other  railroads,  have  joined  in  *\  bill  of  complaint,  and 
applied  for  an  injunction  against  the  Bruoswick  and  Albany  Railroad  and  N.  L. 
Aogier,  State  Treasurer.  The  object  is  to  arrest  tbe  construction  of  the  Albany  and 
Bruoswick  Railroad,  and  to  restrain  the  State  Treasu'-er  fiom  indorsing  its  bonds,  on 
tbe  ground  that  the  road  would  infringe  the  vested  rights  and  privilet^es  of  tbe  com- 
plainants, and  that  the  State  aid  would  be  unconsticutional,  etc.  Judge  Schley  has 
granted  the  injunction. — Memphis  Avalanche, 

— A  bargain  has  been  made  with  the  North  Missouri  Rail  oad  Company,  by  iwhich 
that  company  agrees  to  build  the  St.  Louis  and  Cedar  Kapids  Railroad  from  the 
present  terminus  of  the  North  SAissouri  at  Bloonafield,  near  the  State  Line,  to 
Ottumwa,  by  the  let  of  December  next.     The  distance  is  about  eighteen  miles. 

^In  the  case  of  N.  A.  Cowdrey  and  others  ts.  the  Galveston  and  Houston  Rail* 
rosd  and  others,  Justice  Swayne  of  the  Supreme  Court  at  Washington  last  week 
made  a  decree  holding  the  railroad,  Ac,  of  the  old  company  subject  to  the  mort- 
gages, and  dismissing  that  part  of  the  complaint  which  clai  ned  the  property  of  the 
succefsor  company,  and  an  individual  liability  cf  the  defendants.  Both  parties  take 
an  appeal  to  toe  Supreme  Court.  Mr.  Cowdrey,  representiog  the  bondholders,  is 
placed  in  poeseseion  of  tbe  railroad  nntil  the  appeals  are  determined,  he  giving 
security  to  account  for  the  rents  and  profits  while  in  poesessioo. 

LiAsx  OP  THS  PiTTSBuao,  FoRT  Watnk  AND  CstoAGO  Railwat.— This  imp-^rtant 
line  of  road  has  been  leased,  in  perpetuity,  to  the  Pennsylvania  Railroad  Compafiy  at 
SD  annual  rental  of  $l,S8<sOOO,  to  be  paid  to  the  stockholders  of  tbe  former,  over 
and  above  all  other  claims  or  changes,  including  the  government  dividen  1  tax  on  the 
rental  to  be  paid.  This  sum  is  i2  per  rent  upon  the  share  capital  of  the  Fort 
WsYoe  Company,  and  equals  the  interest  on  a  capitalized  sum  of  $19,714,285-— 
a  ^um  $8,214,286  greater  than  the  share  capital  of  the  Company  at  the  dale  of  the 
lease.  By  its  tenns  its  shari  cipital  is  to  be  increased  by  a  li-^e  amount,  upon 
vbicb,  in  perpetuity,  and  free  ot  government  tax,  dividends  of  <  per  cent,  in  quarterly 
psyments  of  If  per  cent,  are  to  be  forever  paid.  The  fulfillment  of  the  t^rms  of  this 
lease  is  guaranteed  not  only  by  tho  net  earnings  of  the  leased  road,  which  for  the 
pdSt  fife  years  have  been  $8,600,000  in  excess  of  the  rental  that  would  have  been 


2S2  COMHSBCIAL  OHHOKIOLE  AKD  BBVIKW.  [SeptoAv, 

called  for  had  (be  kaee  been  io  operBtion,  but  by  tho«e  of  the  PeiiiisjiTiiiU  BaHroid 
Company,  which  are  twice  greater,  over  and  above  all  changea  opoo  it.  A  teeority 
has  tiins  bt>en  created  of  nnezsmpled  excellence,  and  one  which  will  be  Boogbtfar  as 
an  invefltment  for  treat  funds — an  investment  bearing^  a  high  rate  of  ioiei«8t,iiid 
one  in  vhich  no  change  will  ever  be  required,  and  for  which  every  possible  oooditiaB 
of  safety  is  sopplipd.  Tho  books  of  the  Gompany  are  now  doted,  so  as  to  call  in  the 
old  and  issae  the  new  stock. 

Laks  Shork  and  Michigan  Sodtsben. — ^The  consoIidatioD  is  now  complete,  aad 
one  company,  the  Lake  Shore  and  Michigan  Southern  Railway  Company. owns  t 
line  of  railroad  extending  front  Chicago  to  Buffalo.  The  road  now  owned  by  ibe 
company  consists  of  the  ibllowiog  knea  and  branches : 

Chicago  to  Bnflfalo,  via  Air  Line...  SO 

Toledo  to  Elkhart,  via  Adrian  and  White  Pigeon 1« 

Js'kBon  Branch MX 

Adrian  to  Mcnroe SBi 

Toledo  to  Deiroit 1 » 

White  Pii^eon  to  Constaotine  erased) 4 

Branch  <o6raytown,f<om  Junction  8  miles  east  of  Toll  do 9 

BIyria  to  SandDsky >    S 

Total ^ 886 

Central  Branoh  or  the  TTnioit  PAOirio. — This  road  is  completed  to  WaterriOe, 
one  hundred  miles  west.  There  it  was  to  connect  with  the  Kansas  Pacific,  b«it  that 
road,  instead  of  turning  northward  to  Fort  Kearney,  as  originally  contemplated, 
continues  due  west  to  I>enTer,  leaving  the  Atchison  line  with  do  outlet.  The  AtekinB 
road  received  a  subsidy  of  $16,000  per  mile ;  and  its  maoagera  claim  that  as  tkey 
have  fulfilled  their  part  of  the  contract,  the  government  is  bound  in  good  faith  to 
give  them  a  Western  connection  by  continuing  the  endowment  for  160  miles  fortter, 
to  Fort  Kearney,  where  they  can  connect  with  the  Union  Pacific.  Th<>y  allege  that 
the  road  is  so  well  built  that  not  even  Kansas  freshets  have  ever  destroyed  a  (ii^ 
culvert. 

The  loc  il  busioers  Is  already  very  large,  and  will  ultimately  become  very  heavy. 
The  company  has  just  put  260,0(>0  acree  of  land  into  the  market,  at  from  12  50  to 
$10  00  ^nacre,  payable  in  instalments  running  through  ten  years. — CkUayo  EaUwaf 
Review. 

-^Telpgrams  from  Buffalo  and  Cleveland  acnounce  that  the  coosolidatiao  of  tiM 
liake  Shore  Roads  from  Buffalo  to  Chicago  has  been  ratified,  oo  the  bases  of  the  par 
value  of  all  the  Stocks,  by  the  general  meeting  of  the  BuflUo  and  Erie  Stockbokkn 
at  Buffalo,  and  of  the  Lake  Shore  and  Michigan  Southern  at  CIcTelacd.  The  etyk 
of  the  Consolidated  Company  is  to  be  the  Lake  Shoro  aod  Michigan  :$ooth<m  Rail- 
way. 

TsNNMsn  Railboadb. — KirozviLLK,  Tenn.,  Aus^.  28. — Colonel  Folaon,  Qairtir- 
master  United  States  Army,  is  here  under  orders  from  th-s  Oovemmeot  to  tafct 
possession  as  Receiver  of  the  East  Tennessee  and  Georgia  and  Bast  Tenn(«ee  aod 
Virginia  Railroad  Companies,  for  an  iodebte<fness  of  $600,000  doe  the  Ooren* 
ment  for  engines  and  rolling  stock  purchased  at  the  close  of  the  war. 


COMMERCIAL  CHRONICLE  AND  REVIEW 


^^»^>^*^^>^»^>^»^»^W  H^^^M  ^ 


Monetarv  Atralrs— Bates  of  Loans  and  Dlfcoants— Bonds  told  at  New  Yoilc  Stock  Exebfo^ 
ik>ard— Frice  of  Qovernmeot  Secarltiea  at  New  York— Coume  of  Consols  and  ^^*^^ 
Becniities  at  New  York— Opening,  Highest,  Lowest  and  Cloaisg  Prices  at  the  New  Tc^ 
Btock  Exchange-General  Movement  of  Colo  and  Bollion  at  New  York-Courfe  of  (kw 
at  New  York-^Conrse  of  Fore  gii  Kxcbange  at  New  York. 

Augaat  has  been  characterised  by  comparative  steadioess  ia  fioanciil  eirda> 
Aniong  the  backs,  there  has  been  a  coDservative  feeling,  inspired  by  their  lioiii^ 
resources  and  the  prospect  of  the  fall  demaod  for  money  for  crop  parposea;  t«t, 


1869]  OOMlfBBOIAL    OHROKICLE  AKD    REVIEW.  233 

at  the  close  o^  the  month,  tbia  feature  was  les^  conspicuoas  than  at  the  com* 
meDcemcDt.  Daring  the  first  two  week^I,  considerable  amouota  of  carrency  were 
sent  to  the  West,  raaiuly  for  moving  the  crops  of  the  Southwest ;  but,  daring 
the  latter  half  of  the  mooth,  this  oatflow  yery  eensibly  dimioisbed.  The  opera- 
ticDS  of  the  Sub-Treasury  have  been  in  favor  of  the  market.  About  $12,(i00,- 
000  have  been  disbursed  in  the  purchase  of  bonda,  while  only  $2,700,000  have 
been  taken  in  throogh'  the  sales  of  gold  ,  so  that  these  operations  have  placed 
about  $9,300,000  of  carrency  in  the  hands  of  the  banks  Notwithstanding 
the  gain  from  this  sonrce,  the  associated  bjnks  held  on  Aog.28tb  only  S^2,800,- 
000  of  legal  tenders,  aeaiost  $66,100,000  on  the  31st  of  July.  This  decrease  of 
legal  teor'era.  in  the  face  of  large  payments  by  the  Treasury,  is  due  partly  to 
the  fact  that  the  Governoient  has  been  receiving  large  amounts  on  account  of 
ioternal  revenue,  and  partly  to  the  Westward  oatflow  of  corrency  above  alluded 
to.  The  loss  of  currency,  however,  U  much  beyond  the  amount  indicated  in  the 
decrease  of  legal  tenders  in  the  banks ,  for  the  banks  have  naturally  need  national 
carrency  as  freely  as  possible  io  making  their  remittances ;  so  that  while  at  the 
beginoiDg  of  the  month,  that  form  of  circulation  was  so  abundant  as  to  be  loaned 
temporarily  iree  of  interest*  at  t  e  close  it  was  comparatively  scarce.  The  banks, 
io  anticipation  of  the  with  drawal  of  Western  balances,  later  in  the  eeuson,  have 
Bbown  a  marked  preference  for  demand  loans,  and  the  rate  of  interest  on  good 
collaterals  has  consequently  been  5®7  per  cent,  while  discounts  of  prime  paper 
have  ranged  mostly  between  9  and  12  per  centr 

At  the  close  of  the  month,  there  was  less  disposition  to  calculate  upon  any 
marked  stiingenoy  during  the  fall  months.  It  was  gener.iily  regarded  as  certain 
that  the  Secretary  of  the  Treasury  will  show  the  utmost  possible  co  sideration 
for  the  monetary  convenience  of  the  public,  during  the  period  of  moving  of  the 
crops,  and  that  his  late  policy  of  buying  bonds  freely  and  selliug  gold  Bpariogly 
will  be  continued  uotil  the  meeting  of  Congress.  This  expectation  has  produced 
a  more  settled  feeling,  and  it  h.is  afTorded  a  basis  of  calcuUtioa  for  operation 
during  the  next  three  months.  The  following  comparison  shows  the  c  ndition 
of  ihe  associated  banks  on  the  28th  of  August,  1869,  and  the  29th  of  August, 
1868: 

CONDITION  or  AS800IATXD  BAMK8  AVOUBT  S8,  1869,  AKD  AUOUBT  29,  186S. 

AusniBt  28, 1S69.  Aii)^BtS9, 1863.              CbiiiifEC(«. 

Loans  and  diBCOtmtB i^l,0i2,'00  $m,7'0.(K)0  Dec.  $10,768,000 

8pc  le 19,469,000  1«,94*,000  lac,      2,52tMrt)0 

Urcalation 389U9,000  S4,112,0(K)  1)  C.         113,(J'»0 

Deposits 188,754,00»  8lt»,8M,000  r)«c..    21,580,000 

Legal  tenden 62,793,000  67,757,000  D^c.    14,965,000 

The  speculation  in  railroad  stocks  has  been  languid  and  without  any  special 
heot.  The  effort  early  in  the  month  to  depress  prices,  upon  an  expectation  of 
strmgency  in  money,  was  early  discontinued,  Irom  an  impres^sion  that  the  move- 
ment had  been  undertaken  too  early,  and  the  market  has  since  dri'ted  along 
without  any  special  effort  to  control  its  direction.  There  is  no  disposition  to 
b!iy,  80  long  as  it  is  probable  that  before  long  the  money  market  may  be  within 
the  control  of  speculators,  and  none  to  sell,  when  the  present  condition  of  the 
loan  market  is  agaiost  **  short"  sales.  The  transactions  at  the  Exchange  have 
heen  only  333,(-  99  shares,  against  1,151,003  for  the  same  month  of  last  year. 


234 


OOIOIEROIAL    CHBONIOLB  AND    BKTIEW.  [Stpitmber^ 


Claeses. 
Bank  shares 
Kallroad   »* 
Coal  " 

Mining  " 
Improv'nt" 
Tefe^aph  " 
Steamship'' 


8T00KS  BOLD  AT  THE  NSW  TOUC  8I00K  SZOHAVOB  BOAED. 

18G&. 

•«l,87a 
2,215 


1868. 

2,832 

1,G03,M5 

2,411 

0,700 

7,200 

28,680 

88,fi67 


lacnaae.      Dee. 


SI 


Bxpr'BS&c"   70,808 

Total— Anenut ^ 1,161,008 

SUce  January  1 12.818,889 


2,660 

1,800 

7.235 

15.365 

19,499 


888,099 
8.626,431 


m(6S 

IQB 

4jllR 

5,400 

16,4SS 

1S893 

5U3» 

M7,«4 
4,lt6,953 


The  coarse  of  epecnlatioD,  in  Wall  street,  has  been  remarkably  dall.  Tlie 
moDth  opened  with  a  general  dispoaition  to  discooot  the  probabilities  of  ao  aons- 
nally  active  money  market  later  in  the  seison;  and  there  was  a  cooeeqnent  eiteo- 
8i?e  selling  oat  of  secarities.  attended  with  a  general  decline  in  prices.  Ens 
government  bonds  sympathized  with  this  tendency.  Large  amoanta  bad  ben 
held  on  specol  it  ion,  in  ezpectatinn  of  a  rise  growing  oat  of  the  parcbases  of  the 
lYeasary;  aud  onder  the  gloomy  tone  ol  the  steet,  these  were  hastily  spilt  opoa 
the  market,  with  the  result  of  a  decline  of  2-|@^4  per  cent.  This  Bopply,  however, 
we 8  soon  absarbeil  by  the  government,  whose  parchases  for  the  month  aggrpgale 
$10,000,000;  and  as  very  few  boads  came  oat  of  the  hands  of  bona  fide  ioTeston, 
the  market  geneially  stiffened  toward  the  close,  being  strengthened  by  ao  expeo- 
tation  that  S^'cretary  Bdatwell  woald  continae  his  parchases  at  the  rate  of  aboat 
$10,000,000  per  month,  ontil  the  meeting  of  Congress.  At  the  cl(^  pnee 
were  l(^H  below  the  opening  qaota lions.  The  transactions,  have  been  vo? 
limited,  the  total  sales  at  the  board  having  been  only  $13,398,859,  agaiost 
929,432,650 Jor  the  same  period  of  1668. 


BONDS  aOLD  AT  TBI  M.  T.  BTOOK  XXCHAMOV  BOABD. 


ClasfeB.  1868. 

U.S.  bonds $29,482,r«0 

U.S.notCB 1,760 

Bt'e&cityb'ds 8.?06.9a0 

Company  b'ds 969,000 


1889. 
$18,898,860 

•  •  •  •  •  • 

5,094,000 
l,lt4,000 


Inc. 


184,609 


Dee. 
$16,(i6S,iO 

8411,903 


$19,616,860 
284,614,7U9 


$19,Oa96u 
14,135,4U 


ToUl— August $88,e»,800 

Since  January  1 248,770,120 

The  daily  closing  prices  of  the  principal  Government  secarities  at  the  Kev 
Tork  Stock  Exchange  Board  in  the  month  of  Aagost  as  represented  by  tbe 
ktest  sale  officially  reported,  are  shown  in  the  following  statement : 


PBICBS  or  OOVBRKKKNT  8XCUBZTIXB  AT  ITBW  TOBK. 

<-6's,  1881.^. 6*»,  (5-20  yr8.)Coupon 

Coup.    Res.    1862.    1864      18b5.   new.     "67. 

I'UH   i^H  12SK  12SK  mx  1%'% 

mX    lM)i    125       lf3X    198$(    lUX    12-iH 

••*•....    1^\    124K    12S>^    l^M    324        1I2X    tUX 

U\%     125K    1^       124)^    \ttK    inx 

126      135      i23;i   \nx  l^X 


>• • *••• . . < 


Day  of 
month. 

2 

3 

4 

6 

o«  •••••••••       • 

7 l«4Ji    126 

9 Its        

10 125        

11 

12 122J<     

18 12«X 

^^••••■•••••■■«  .•••«•••••••••«  ••«      •  ••«•• 

17 181X     

18 12S        

19 12i>i    123 

20 123^     

21 

SH 

24 


— ^5*t,ie^ 

•6^     Cpa. 


125 
185 

\nx 

12tK 
lt%X 
128^5 

12831^ 

«  •  •  »  • 

122K 
128 

•  »  •  • 

122H 


148X 
12SX 
128^ 


ISO^ 

:«ix 

121^ 
121X 


VOX 

vox 

.  •  •     • 

mx 


i283i 

12^ 

122«( 


120X 

120^ 
121X 


12iK 
122^ 


121X    121X 


121  Ji 
12iy 
1203^ 
l'K)K 

H9X 
1193i 
l;(0 

119X 
1*0^ 
V^X 
l»X 


\nx 

12'\'  

121«  

V2\\  .    . 

U\X  VSiX 

vnx  

1201^  

llfix  

IVHX 

120K  129X 

1«X  

141V  iao,v 

120X  


,.«.• 


lift 
IIS 
IK 

115k 


115 

\M\ 

11»H' 

114 

IISV 

i:ei 

114 
lit 

iiik 

114X 


aud  review. 


]£Si<  »8V  lll.V  lU  130!i  l!1>f  lUk 

131  19UK  iiK'%  lK)t  IIS 

iM3t  la  i*s«  wjji  m«  isiji  i*:« 

linit  lUH  133K  IHM  I'SK  DIK  13t>i  ....  llift 

.   istii  iMv  :ui<  193^  is<.s,  issK  laati  iirsjj  111 

,    Itt  la  i«x  1*^  1»><  iS'K  l^'!j  1^.^  liflW 

.    111X  i«4h  ii'><  i^K  i2"K  iio)>  iiu.s  iS'M  )iix 

.    1!3M  193»  l*»j^  113^  13}K  lUS  laiK  IWX  U&H 


I 

UoM  opened  si  13<'f  udJ  closedatl33f,  ti&vinj;,  durlogibe  inurim,  loiched 
Bt  131f.  The  first  half  or  th"  month  Fpeca'alfvu  was  languid  and  gi-c«rcillj 
JD'srurof  a  lower  p  rem  in  Di.  L'ltr,  honever,  ibe  diminbbing  stock  on  the 
iDitkel  encooraged  a  few  very  larpe  boldera  to  tiuj,  in  tiie  hope  of  bfioi;  thereby 
ecabled  to  contrJ  the  maik«t  and  force  Dp  tlie  price.  'I'lie  ptemiQin  boa  net 
bciD  irateriiillj  bfr^cted  iiynffiira  estraat^oua  to  the  marki^t,  Ibo  apecQia  ive 
lituaiion  bcine:  each  aa  to  lender  the  price  peculiurly  iDHCiisible  to  the  con* 
eideraiiocu  nbicb  more  legilimdte'y  control  it.  The  freaaiirj  sold  S2,(l'iO,Ol)0 
olcoia  doriotc  the  mootb.  Tlie  exports  of  specie  have  been  qaite  nomiaai. 
A'lOtitl  S2.uUO,UU0  cold  waa  lr«nfferred  from  this  market  10  Bn  Fraociaco, 
ihr<tD(;h  the  agency  of  th"  'I'rpa.'ury  ;  tbe  pold  beiog  deposited  io  tbc  Sutb 
Trraaurv  here,  while  ibe  United  tjlates  'I'resaurt'r  gave  tbe  depoeilors  hd  o.-der 
on  Ibe  AiBistaut  Treusurer  at  SdO  Fraocieco  to  pay  an  iqaul  amount  to  tbeir 
corre^poodeuts  id  that  ciiy. 


Data. 

1       i 

_ 

Data. 

1 

1 

S 

i 

T       ■■ 

S;a,7.-::.: 

RJil! 

^ 

I.UXJU 

236  COMUBBCIAL  OBRONICLB   AND  BKTIfiW.  [Stptemhtf, 

The  folIowlDir  table  will  thow  the  openiog,  highest,  lowest  sod  closiog  prieei 
ot  all  the  railway  and  miscellaoeous  f^ecarities  quoti  d  at  the  New  York  Stock 
Exchange  dtiring  the  mooths  of  July  aod  Augnst,  1869  : 


r" 


Inly — — » ,^  .  Aagnrt— 

.  L-iW.  ^ 


RailrtMid  Stocki^                                Open,  lilgh.  IriW.  Clos.  Open,  tiigh.  Lov.  Cloe. 

Alton  A  Terre  Hani S8  86  S9       J^ 

**             '*         **     pret SO  6)3<      i9H  h9fi  59  59  56       » 

Ohtcago  A  Alton  . . . 16«  ll«  IM  KM  168  168  1S4      155 

do           do   pref. ittOX  166  150  ln6  l«tt3<  l«iSX  135      IM 

Chicago,  Burl.  &  (^oincy 191  191  288  19U  196  SOti  l^X   IMjtf 

do       A  Northweet*n.... 6^^  8)        1S\  Stt%  84  9ii(  8;!?^    M^ 

do                   dooref 96,^  96X     9S%  96H  96X  ICl  *^'\    ^ 

do       &  Rock  Island 1183i  118^  IISJK  114  V  114M  H^Bi  IHX   114)i 

Colamb.,Chic.&lnd.  C 38^  89)^      Sh  86)2  ST  87  3t       aS 

Clevtt.  A  Pittsburg: 103  109X  1<S  1U73€  lOTj^  Hi^3i  1(4      V»)i 

do    Col.,Cin.  &lnd..     74  TO         79  78  78>^  fctt  n^    » 

Del.,  Lack  J;  Western liaj^  118  110  119X  119  US  HlX  ni}( 

Dabnqae  A  Sioux  city 105  1U6  l(tt  l>4)tf  ItX^  Il-I  ICMJ^  Hi 

Harlem 144  1«8X  l^^X  l^X  18t  187  ItiO      IflO 

Hannibal  A  St.  Joseph.  ••••  119  lid  115  196ji  lv6X  131  Hi     IS 

do                do   pref. 119K  )80  119  196  195  liS^  190      Itl 

HndsonRlver 1663^  194  169K  imH  187  l^S  179ii  1»4 

Illinois  Central 149ji  146  140)^  1415^  149  14i  139)^  139X 

LouglslaDd... 50  6U        60  60  

LakeSho.a;Mtch.80Bth 100  109X  104X  WX 

Macon  &  Western 190  liO  19(1  190  

Mar.  ACincin.,l8t 98SS98»»SS9ISi 

**       9d    ••    »X  9X        W  »¥  •  0  9        9 

Mickl«:an  Central 180  136V  I'^H  lS13r  18iX  189|(    198     191 

Milwaukee  A  St.  Paul 76  78X     78  '.7^  t^  ^^i  '*9       TfU 

<Ui               do  pref 86  89^     bi%  9i}i  89V  ^H  86K    r^}i 

Morris  AEssex 89X  90        H7K  S7X  ^H,  V*)i  87^    t^H 

VewJcrsey , 193  l«  133     la 

do         OcMlrnl 10«K  104)i     97  Vnyi  109  109V  1«      ^1^^ 

New  York  Central 196)^  917?,  189V  «16  *«X  9I9X  197      1» 

do         AN.HaTfU 197  131  1S5>^  181  lS»ii  145  \Zl%   14B 

do              do      scrip 194  198  194  198  198  140  19S      laS 

Norwich  A  Worcester 104 V  105  104V  105  118  119  1:2      111 

OhioAMiasiSAippl....  ««^ 39X  88        nlH  89V  89V  89^  SIK     3Sy 

Panama 985  9^  970  970  ftO  97u  980      9» 

Plttsb.,  Ft.  W.  &  Chlca 156  157V  ISO  158V  158V  154  V  IMV   151M 

do             do       guar 8!>3i  9u  ^H    Mi 

Reading.  98V  WV     OtV  tTV  07  98  »)(    «SX 

Rome,  W.AOffdensb'K ....  lOOV  KOV  lOOV  VH't 

Toledo,  Wab.A  Western 79V  TT        71V  W  74  88  74       8J 

do       do        dopiei 76  86  76  80  74  87V  74       O 

MlBceOaneons— 

Cumberland  Coal 89  88V  80  88V  M  85V  83       9 

Frnosylvaiiia 995  996  995  Si6  

Wilkvbarre  Coal 65  C9  55  69  65  65 

Del.  A  Hud.  Canal  181  181  197  197  197  198 

PacificMail 88V  99V  81V  ^H  ^\  ^7 

Boston  Water  I'ower 15V  15V     I'V  16V  15  1^ 

Canton 6^V  «9V     60  60  68V  68V 

BmnswickCitr 11  H         It  11  8V  8V 

Mariposa 9  9          8V  »  8  8 

do       pref. 16  17  16  16  16  16 

Quicksilver.  16  16V  ISV  10  16  16 

West.  Union  Telegraph 88V  8ft        80  37V  SS  89 

Citixens  Qai! 160  160  160  160  150  ISO 

Bankers  A  Brokera  Am 109  HO 

UnionTrust 150  X60 


Bxpreaa— 

American  M.  Union 49V  48V  »X  «  «V  «V  »ltf  « 

Adama 69  «9  68V  MV  MV  59V  »  gj 

UnltedStates 70  75  e9V  TO  «V  «V  W  «» 

Merchant's  Union 0         6         6  6  10  11  10  IJ 

Wells,  Faigo  A  Co 81V  81V  SIV  SIX  SI  »  l^X  K 


65 

65 

196 

1« 

79 

to 

13X 

m 

^8 

68 

8V 

8X 

8 

S 

lOV 

It 

14 

15 

87 

1R% 

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IJO 

insv 

WH 

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1» 

lOURHAL   OF  BAKRINO,  CUBBEHCT,  AND   flNAKCE. 

{to  DITB)  AT  ITIW  TOHK. 


liODdon.  pBrl».  ABiBtecdiim.  BremeD.    Hamburg-       Berlls 

cenii  for  centimes         contcfor      cenia  for     cenlsfcr     ceo tg  for 

Diijt.                            Miieucc.  foidallBr.           noria.  rlidaler.  M.  l>anco.        ihaler. 

1 1!"    BIS    B5lH>i  /-■ —     -     71    @m( 

3.... ic  SIB  eawi  ■  n  e(7(M 

)  - U  SIO    ©513,V  ■  11    dillit 

5 1'  616  mnx  ■  71  ©tij* 

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1 1  616  ©sisji  .  71  an« 

» 11  616    ©M3\  .  11    ®n» 

w 1)  615  (ar,n«  .  11  Mmt 

n 11  616    (»18!4  i  71    Sti!< 

» i:  616  ©5:»«  ■  «  S7i« 

" 11  616  f6si3i;  ■  71  Siix 

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It...— i(  Bi5H®.iM«  ■  Ti  mm 

n II             ;  6iMj,fe.si5  *■  ■^*■•' 


:    6I7H& 


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n  mm 


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;  616«(i«.MS  —  '^■~■- 

;  6ittjiS6i»). 


:  6i«!iS6i«K  71  aTiiJ 

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n" II            I  sn^-asmx  ii)ta"x 

n II                  i  617ii^l<lK  IIMISTI.V 

Aiinnt,19IW lOBKailCIX  6nHia6H5i  «JO40Ji    78'j(iT9X    BSvasO       71    OTIK 

Aoguuiiseii iM^iatiioji  6iH3i@AiitX  40}i®4i}j  i»x®»»     aa\ii»»ij<  ^iJtanM 


JOURNAL  OF  BANKING.  CURRENCY,  AND  FINANCE. 

Bstanu  of  th«  New  York,  Phlladelptila  and  Boston  B*iik». 
Below  we  give  the  retnroa  of  the  Banks  or  the  three  cities  aince  Jan.  1 ; 

Date  Lcnna.  Hn«cie.       Clrenl-itDD.       Denoulu        I,.  Tr^il'ii.    i 

JuLOnij  J....8JB9,(M0,I)ST 

Jimarja....  sss.Tsa.Ma 

JinoirrlB...  Ma,S.'«,8»l 
J-iiiBsryia,.,  »l,»IM,fliB 
JiiturrBO...  Mj, 171, 109 
Fthruirrfl.  .  *M.Ml,Ta* 
Filiroarj  13..  S<M,S80,«7 
Ftt.niav  30..  S6S.4SS.0ei 
Ftliiiiarj  *T..  S61.R11.WI 

Mitlm Mi,089,l«a 

Mitch  IS Sei,h69,0S 


if.;' 


HirthSV Mt.9QD.im 

Avhl    3 Wl,eS3.«76 

April  10. a»iM,m 

..  »S,184,8e3 
.     S67,U!^,014 

..  a«u,4Sfi.iso 

..  SS8.48fl,3TJ 

..  tmA9»,«n 

.  »70,«T8,i«l 
..  174.«36,4lll 

,   jw.siB.Boa 
..  a7i,«6a,i85 


J'lji jSf.ane.Mi 

Jnll'lO SS\«4'94S 

I'lJil S6T,008,3>» 

Joijii «9,frii,e8B 

'cljll «O.MO,«S 

A'enBii aH,irB,»7 

Augnttlt.....  aSS,60G,:^ 

iDioatll 9S3,T|],1BS 

AnjUMJa.  ...  1B1,011,1W 


twWwan 

tim.iK.HS 

v».tm.va 

1S8,TM,C3» 

H,7I»,8U 

233 


JOURNAL   OF  BANKIKa,   CURRBNCT,  AND  FINAKCE.  [September, 


PHILADELPHIA  BAHX  BBTUBKB. 


Date.  Loane.  Specie. 

Januaiy4 $51,716,999  ^i,48S 

Janaary  U 61,642,1237  544,691 

January  18 B2,122,733  478,4«2 

Janii  ry  2^ R2,5;n,015  411  8S7 

Febunryl 62,(>8a  818  « »2,782 

February  8  M,05'J,'»lti  8n,0U 

FcbiQ  ryl5 62,tt-2i»,39l  804,681 

Ftbr.  ary22 62,416,140  2.)1,807 

March  1 62,261,351  a8«,»83 

Marc    H 52,2*^000  297,887 

March  15 61,«ll.5i*2  877,6l7 

March  23 61,82A,419  925,097 

March  29 RO,K>7,lOJ  210,644 

AprlJ   5 f0,4il»,h66  1?9,0;I3 

April  12 60,770,1  Ji3  184.248 

April  19 «, 178,871  167,818 

*prlj2ii 51,294,222  164.261 

May   «  ...  51,S10,»8i  201,758 

viuyln 61,936,630  270,626 

May  17 6^168.626  2^6,16: 

:May24.     62,»;l,764  174,115 

M  y81 62,210,814  18\46T 

Jane   7 62,826,:«7  169,816 

June  14 61124,800  162,451 

June  21 63,810,095  148.795 

Juue2S 63,601. 17J  180,684 

July    6 6:it«7,621  8u8,621 

July  12 68,140,756  486,29i 

July  19 6:^,128,598  466,75) 

JaV26.  62,4«M00  390,877 

AugUbt  2 61.y53,8  8  8^1,869 

Au«^ii8u   9 5i,0i2,880  8«<,216 

AuffUtftlO 6l,«;«,9^1  286,089 

An2n8t23 62,JI00.626  244,2MS 

AngntstSO 62,0^8.662  245,515 


Legal  Tenders. 
$13,210,897 
13,4«>sl09 
13,729,498 
14,051,870 
14,«46,570 
13,785.595 
l.rJ,573,043 
18.208,607 
13,010.5W 
18.25fiL20l 
18.028,21^ 
12,766,769 
13,021  ..S15 
12,169,221 
12,643,357 
12,941,788 
18,640,063 
14,2/0.371 
14,h2{.808 
14.696.365 
15,087.008 
36,484,947 
15,87r,388 
16,178,8« 
14.972,128 
14,5G7,.327 
14,011,449 
18,415,4»3 
12  944,886 
18,070,180 
13,618,911 
18,530,061 
13,047,K85 
12,977,027 
18,015,218 


Depofiita. 
$38,121,028 
88,768.511 
89.62S,156 
>  9,586,462 
29,677,948 
40.ft«.'m 
3{1,71 1,575 
87,990,966 
87,733,206 
8S,«»8,966 
87,570,SaS 
}i6,96(\000 
86,863,344 
S5,87\S54 
86.029,188 
87,081,747 
37,487,285 
88  9^1,»^1 
)fl.l78.80S 
40,602,742 

4i.on,4:o 

42,^47  S19 
42,390,980 
42,005,077 
42.066,901 
41.617,716 
41,ttl,6«7 
40,140,497 
89.834,861 
96.160,644 
89.717,1X6 
8i).6()6.4C6 
89.141,196 
39,0:0,665 
8  ,888,414 


BOBTON  BASK  BBTUBSB. 

(Capital  Jan.  1,  1866,  $41,000,000.) 


Date.  Lonne.  Specie. 

Jnn<>Nry4 $98,423,644  $i,903.4Ul 

January  11 100,727,O'7  3,076,814 

January  18 102,205,209  2,677,688 

Janu  *ry  25 102,959,942  2,394,7S« 

Fcbruaryl 103,6»«.«S  2,161,284 

Febiuary8 104,342,425  2,078.908 

February  16 103,215,0S4  1,846,624 

February  23 102,252,632  1,646,418 

March  1 101,309,5^9  1,288,986 

Marchb 10l.425,«33  1,297,699 

MarcHlw 100.820,308  1  2i7,316 

March  22 94»,55.3,31 9  1,830,864 

M«rrh29 W,070,«J46  987,769 

Anril   5 fl6,%9,1l4  862,276 

.ftprill2 99,626,474  760,160 

April  10 t*9.ns,fi60  689,460 

April  26 9H,ii7l,7ll  617,435 

May   3 100,127,411  708,968 

May  10 liK»,5.AB42  l,'ib7,749 

Mayl7 101,474,627  1,134,^86 

May24  102,042,18*  934,560 

M8y8i 10i,513,2J8  772.397 

Juilo    7 103.643,849  640,682 

June  14' 104,'»2,64g  601,744 

June  21 103,6111,658  969,796 

June  28 102.576.825  1,105,662 

Juvli 102,633,1)48  8,14'),676 

Julvl9 101,<05.2ll  8,255,161 

..uly2n lvW,70/,510  8,024.696 

AuffU-t  » lU3,bOI,86t  2,366,920 

Au^ustlO 10^,811,271  2,154,616 

Augu»t2:i 102,9S8,791  2,117,372 

Auk'UBt30 103,063,007  1,871,7:8 


Lef^a!  Tenders. 
$12,938,832 
12,864,700 
12,992,827 
18,228,874 
12,U64.22S 
12,452,795 
11,642,866 
ll,:i60,790 
11.200,149 
10.985,972 
10,669,188 
10,490,448 
11,646,224 
11,248,884 
11,391,650 
11,4<.9,996 
12,361.827 
12,852,118 
12,513.472 
12,e88,527 
18,191,642 
18,6<)6,857 
18.4M661 
12,648,615 
12,087,305 
11,784.602 
9,&96,6ti8 
9,5il,879 
9,793,461 
10,719,569 
10  4386H5 
11,2.0,664 
11,908,78$ 


DepoBitB. 

$37,538,767 
38,082^1 
89,717,198 
a9,65:,747 
40,228.462 
89,698,897 
87,759,7«t 
86,82^814 
86,<I89,466 
8^52&,680 
84,061,716 
82,641.037 
82,980,430 
83,604,009 
34,382,877 
34,251,071 
85,804,208 
86,785,742 
97,457,897 
89,708.801 
8^847,88t 
88408,«H 
88,491,446 
97,4Qti;712 
96,149,995 
94,981,417 
94,851,745 
94.690,417 
85,211,109 
87,908»887 
96,m;919 
94^991,791 
95,229,149 


CiralatioB. 
9io,5SS.t:» 

10,S9^2 
10.566:^ 
10,»1914 
lQ.5m,Sl 
10,586^ 
10,' dt** 
10,4'«,M6 
10.45&MS 
]i»,45t.«^ 
I0.4a«,««'l 
10,«1,«« 
10,4Ti,4an 
l<l,»aWv'* 
]0.<H2^.1tf 
10.6a.425 
l<t  624,407 
lil,6i7.J95 
HUI]h934 
lVl4.»li 
I0,iil^2l6 
1«,6S,3M 
10,fIOL-J«) 

ia6^u»3t 

10.617  ^>l 

iu,6jii:i4 

l(L€lS.>fi 

iu.t.i>.tr 

Ii',6l8.7t6 
:0,ii  4,!Ci 
:0,610.S3 

lU,*Xfc.Jl!l 

lU,S}0,i«l 
l'i,ttKfii 
1Q,6U6,3M 


Circalttipa. 

$S,151,3J5 

25.2».*'7 

25,243,^ 

25,t;i.)o 

2x31t*«T 
25,2<05I 

2.V3H.0^* 
95,ai>l.^ 
2^3ii.«^ 
25.»Le^ 
24.539  S!i 
2S.*M,16T 
24.«.7l,:it> 
25«33&7^ 
25,S1.^^ 

26,ti«.:5: 

25.9ft.tn 
2S,SIU32 

26.«13M1 

25JM.^ 

tS,SS5.7lil 

2S,»iM 
2B^14,7(» 
25,9ni.» 

ts,9i4.aN 

23,206.00 


T  11  K, 


JIERGHANTS'    lA&AZlNE 


AHB 


COMMERCIAL     REVIEW! 


'*^i^i^i«^^A^^^^^^^M«^'^'«^^^^^^#%#^«W* 


OCTOBER,     186  ». 


I  —  ~»'try^trkC\ftf\r^-w^-^r\,rmr^^*,0»f-nj~Lr\j'm 


TIB  INCBBiSE  OF  liTBBIiL  PEOSPEEITT  AND  [OF  |HOEiLL  A6KNTS,  COX- 
PARED  WITH  TflE  STATE  OF  GEIHE  AND  |PADPEEI8I. 

BT  J.   H.  ELLIOTT,  ESQ.* 

Fart  1.-^1. — Introduction. 

It  is  proposed  to  place  some  groups  of  familiar  facts  and  figures  in  an 
Qoasual  apposition,  to  see  what  conclusions  they  point.  The  subsequent 
tables  are  exceedingly  suggestive  when  so  placed.  The  population  was 
taken  in  1851  and  1851,  showing  an  increase  of  12  per  cent  in  England 
and  Wales,  6  per  cent  in  Scotland,  and  a  decrease  of  12  per  cent  in 
Ireland.  The  net  increase  of  the  United  States  being  6  per  cent.  Let 
this  numerical  increase  be  remembered  while  studying  the  Tables  A  and 
B,  which  exhibit  a  much  g^reater  relative  supply  of  the  various  things 
vbich  go  to  make  up  the  material  of  human  well-being — ^food,  clothing, 
and  fuel ;   add  also  of  education,  as  narrowly  understood,  and  of  educa 

*  Bead  before  tlie  Statistical  Society  of  LondiBt 

1 


840  THX   IKCRBABE   07  MATERIAL  FROBPXRITr.  [Octokr, 

tion  in  its  true  meaniDg,  either  for  good  or  for  harm,  and  of  idigiou 
infitruction.  To  this  add  the  improved  sanitary  condition  ol  the  people, 
by  reason  of  better  drainage;  of  improved  dwellinga,  as  far  as  they  go; 
extension  of  medical  aid  and  hospital  relief;  more  temperate  habits ; 
and,  what  does  not  admit  of  measurement,  the  kinder  social  and  moral 
relations  of  the  various  classes  of  the  people.  The  wealthy  acd  iotelli- 
gent,  if  they  err  at  all,  err  now  on  the  side  of  too  much  solicitude  sod 
active  interference,  with  their  less  fortunate  fellow  creatures.  Friendlj 
and  courteous  behavior  seems  to  increase  daily ;  and  gentler  roaoDers, 
arising  from  the  better  training  and  example  of  the  upper  and  middle 
classes,  which  reflects  usefully  upon  the  conduct  of  all.  Very  miidi 
good,  little  heeded,  is  attributable  to  railway  discipline,  and  to  the  hon- 
orable and  generous  policy  under  which  the  affairs  of  railways  are  usosllj 
conducted.  All  these  are  so  much  moral  teaching  for  the  millioDs  of 
railway  passengers.  The  less  use  of  alcoholic  drinks,  consequ^t  upon 
railway  traveling,  allows  the  brain  to  continue  in  a  more  normal  state  of 
tranquil  health,  a  condiUon  closely  affecting  human  condnct  All  this, 
if  carefully  thought  out,  will  indicate  a  very  great  increase  in  the  powtr 
and  quantity  of  those  agents  which  tend  to  improve  the  morals  ^d 
manners  of  the  people.  They  must  produce  great  practical  resoltB  of  s 
most  cheering  kind,  but  they  do  not  do  so  nearly  to  the  extent  thej 
ought  to  do.  There  is  a  portion  of  the  people  which  do  not  lUostraie 
much,  if  any,  of  these  happy  results,  or  the  amount  of  violence,  of  crime, 
and  of  indigence  would  not  concurrently  manifest  so  much  increase.  It 
is  not  enough  that  crime  should  be  even  stationary,  which  it  is  not;  £)r 
if  these  good  agents  did  their  specific  work  undisturbed,  moral  disease, 
crime,  and  misery,  would  very  much  decrease ;  and  in  such  a  wealthy 
and  improving  nation  as  is  Great  Britain,  we  have  a  right  to  expect  this 
result  If  certain  medical  treatment  were  known  to  be  capable  of 
relieving  certain  diseased  symptoroa,  and  yet  did  not  do  so  in  sorrerr 
many  cases,  the  physician  would  say,  as  he  often  does  say  (especi&llj 
when  attending  ignorant  and  vicious  people,)  ^  There  is  sometLic^ 
wrong  here ;  that  does  not  take  place,  which  all  experience  shows  shonlu 
take  place;  there  is  some  antagonistic  agent  at  work.  I  apply  kDO«K 
and  proved  remedies,  yet  the  disease  continues,  and  is  even  aggravaied."* 
So,  if  vice  and  misery,  crime  and  pauperism,  still  increase  amoog  & 
people,  when  so  many  curative  agents  increase,  we  must  inquire  morf 
deeply,  and  ascertain  what  the  antagonistic  agents  are  which  spoil  our 
work,  baffle  our  hopes,  and  resist  our  sanitary  influences  as  well  moral  as 
physical. 

Notwithstanding  all  this,  which,  according  to  moral  and  physical  lavs, 
should  be  followed  by  less  and  less  misery ;  when  we  find  that  miserT 


1869]  THx  iMoasAss  or  matsbial  p&oflPERnr.  841 

iooreases  under  oar  hands,  we  are  oompelled  to  ask  what  is  jet  omitted, 
or  what,  if  anythiog^  is  ttill  done  of  an  evil  tendency  which  spoik  oar 
work  ?  What  other  things  do  we  do  which  may  or  may  not  be  snakes 
in  the  grass  t  Whatever  they  be,  they  ought  to  be  fearlessly  exposed, 
caDdidly  and  honorably  acknowledged,  and  our  policy  changed.  Some 
thiogb  are  good  in  moderation  which  are  destructive  in  excess,  but  some 
things  are  bad  in  every  degree. 

Much  of  human  ill  depends  upon  organization,  which  is  hardly  to  be 
resched  by  human  interference,  at  least  in  the  present  state  of  our  appli- 
ances, bnt  a  larger  portion  of  human  ill  is  amenable  to  wise  management. 
The  causes  of  misery  which  depend  on  our  organization  are,  defective 
animal  strength,  depraved  appetites,  imperfect  intelligence,  defective  self- 
control,  commonly  shown  in  the  absence  of  industrious  and  frugal  habits, 
or  in  the  undue  energy  of  the  passious,  the  healthy  action  of  which  are 
indispensable  to  happiness — due  adjustment  is  virtue,  too  miuch  or  too 
little  is  vice. 

Improvidence,  t.«,  want  of  thrift,  is  the  usual  cause  of  misery  among 
multitudes.  Common  prudence  seems  a  very  uncommon  virtue ;  but 
with  increase  of  so  many  good  influences  improvidence  ought  to  decrease 
and  thrift  to  increase,  but  they  hardly  do  so.  The  lower  orders  especially, 
consume  maeh  more  than  they  did,  and  in  a  wasteful  manner.  If  luxuries 
increase,  the  consnmption  thereof  must  not  be  allowed  to  increase  without 
due  regard  to  the  future.*^ 

The  people  obtain  more  and  more  good  things,  but  they  consume  and 
waste  so  much  of  this  excess  that  they  ever  fall  into  indigence ;  those  who 
do  so,  suffer  deservedly,  and  they  ought  to  be  let  alone.  Year  by  year 
there  ia  leas  excuse  for  poverty  in  this  country,  therefore  those  who  so 
auSer,  ought  not  to  be  relieved,  or  only  with  utmosc  stringency,  else  they 
are  thereby  encouraged  m  their  vicious  course  of  life,  and,  what  is  much 
worse,  bystanders  are  demoralised,  that  is,  they  are  discouraged  in  their 


*  The  dietary  of  a  mecliaiiic  in  the  East  of  London  (where  there  is  now  much  porerty,; 
esrolDg  from  ^  to  4Ua  per  week,  was  in  1865  thas :  he  soea  to  work  at  6,  takiof^  a  dram  of 
I  am,  breakfasts  at  8,  tea  or  coffee,  eggs  and  bacon ;  lancneon  at  10.30,  bacon,  mntton  chops, 
or  f a'ls^ges,  w;th  beer;  dinner  at  1,  ment,  bread,  potatoes,  beer;  at  8  to  8.30,  a  dram,  nsTuiiij 
of  rum;  4.Sfthegoestu  tea;  home  for  the  evening  at  S,  unless  extra  hoars  at  extra  r  te  of 
Pigment.  Sapper  at  home,  sometimea  of  hot  mtmt  or  poultry.— ((?i»  t^e  Statement  (if  t\e 
Jtwiier.) 

Others  in  the  same  district  would  go  into  a  public  house  on  a  Monday,  throw  down  SOs, 
and  order  fonr  botties  of  sherrr,  aod  retaming  to  woik  on  Tuesday,  would  boast  that  since 
Saturday  they  had  been  living  at  the  rate  f>f  a  iil.OUO  a  year.  Men  engaged  in  the  city  haye 
wsj^eit  f  om  Ifie  ti  l^s  a  week,  but  make  with  fees  40b  to  45s  weekly.  If  they  take  home  16s 
for  ihe  wife  out  of  Itts,  keeping  one  for  ttiemseyes,  ihey  think  they  make  fidr  contribation— 
thov  say  noth  n/  of  the  94  s  to  80s  extr-i.— (fdfm ) 

M  n  who  two  years  ago  were  employed  six  days  in  the  week  at  408  to  60e,  gave  the  8mane«t 
>nm  to  their  family  on  which  they  c  .n  drag  on,  and  now  that  they  get  work  only  four  or  Ave 
daya  in  the  week,  their  Ikmilies  are  no  worse  off,  for  they  always  did  and  do  get  only  the 
minimum.   The  man  himself  has  le^a  ^rink. 

A  man  with  a  gang  of  Itborers  under  him,  working  on  a  Ihrm  near  London,  makes  aome- 
ttmes  400  a  weelc  Uls  wife  complalnei  the  lamUy  had  barely  nece-Baries,  but  'showed  the 
visitor  the  beer  score  for  the  week— 17»  Od. 


842  THB  urORXASx  or  matibial  prospkritt.  [Oeioier, 

own  difficult  self-denial,  and  invited  to  disregard  the  fatnre.  If  ws  csonot 
annihilate  misery,  oar  duty  is  to  reduce  it  to  the  miuitnum,  bat  Hy  injo- 
dioions  means  we  seem  to  insist  that  it  shall  ever  eontinae  it  its 
maximum.  It  would  be  much  more  humane  even,  to  leave  ail  such  sof- 
fering  persons  to  their  fate  (but  that  is  not  necessary.)  for  miseiy  woold 
be  reduced  by  such  severe  but  unwholesome  examples.  Oar  pnctietl 
teaching  is,  '*  be  lazy,  wasteful,  and  extravagant,  and  if  any  evil  CDoe 
there  are  those  who  will  relieve  you."*^ 

The  true  dogma  is  this,  that  in  England  there  ought  to  be  but  one 
charity  in  the  whole  land,  t.#.,  the  national  poor  law.  AH  who  sdkr 
ought  to  be  relegated  to  that  really  grand  national  charity ;  to  it  aod 
nowhere  else,  except  it  be  that  small  section  of  suffering  persons,  wbo 
are  the  surrounding  of  each  one  ot  us,  who  are  known  to  us,  sod 
with  whom  we  have  some  special  or  personal  sympathies,  oar  relstions 
and  intimate  friends,  and  it  may  be  our  faithful  servants,  if  such  exist, 
honest  to  us  and  thrifty  to  themselves,  these  may  be  specially  relieved 
by  ourselves  on  the  condition  of  our  closer  and  affectionate  sjmpaiby 
with  them. 

AH  the  rest  of  human  sufferers  are  our  common  fellow  creatures,  vbo 
'have  equal  claims  upon  us  ;  none  of  them  ought  to  have  special  aid  or 
arbitrary  preference^  Special  charity  to  small  groups  of  sufferers  £«Dci- 
fully  selected  bf^yond  the  circle  of  those  we  respect  and  esteem,  is 
partiality  and  injustice  to  the  larger  mass  who  suffer  on  and  g^t  no 
special  relief.  After  having  aided  one's  own  friend  or  his  children,  hL  • 
cares  whether  it  be  Jones  or  Smith  who  enters  the  almshouse  or  tbe 
orphan  asylum?  who  cares  whether  it  be  Brown  or  Hobbs  that  goes 
only  to  the  union  ?  All  these  persons  are  our  fellow  creatures,  hsre 
equal  claims  to  our  sympathy,  and  they  ought  ail  to  be  equally  well  aoti 
kindly  treated :  and,  if  children,  they  should  be  usefully  educated,  cot 
one  better  than  another,  for  that  is  whimsical  partiality  and  faodfal 
injustice.  They  ought  all  to  go  to  the  one  national  charity.  Other 
public  charities  interfere  with  the  good  order  of  the  State.  Our  ovc 
kind  aid  is  due  only  to  those  we  love  and  esteem,  the  national  duritr 
for  all  the  rest. 

That  large  mass  of  suffering  which  is  the  result  of  daeased  orgsnisft- 
tion,  or  of  organic  depravity,  depends  as  much  on  our  original  formatioa 
(inscrutable  as  it  may  be)  as  lameness  or  scrofula,  idiotcy  or  deafo^s^ 
and  should  not  be  so  treated  as  to  extend  and  perpetuate  such  depraved 
constitutions.    A  multitude  of  these  diseased  persons,  but  not  qoite  ^'« 

*  DnrlBff  a  lata  oatflow  of  clmrlty  la  tbe  east  of  Iioodon,  a  aaeic  mannftetorer  coBpii^ 
that  be  bod  grrat  difficulty  in  gettiiig  any  aacka  made.  Bee  alao  Stattatial  ^eaiaal,TH- 
zzzTlli,  p.  19^  *'  Lancaabire'B  LeMon.*^ 


1869]  THE  UrORKASB   OV  MATEBIAI.  PROSPERITT.  343 

should  be  left  alone.  Nature  intended  that  the  diseased  stock  should 
disappear  and  become  extinct,  and  she  has  provided  accordingly.  Organic, 
depravi  y  should  not  be  propagated  and  diffused  by  injudicious  artificial 
interference.  The  healthy  undisturbed  process  of  animal  life  is  to 
eliminate  diseased  organisms.  The  gardener  propagates  and  encourages 
ODiy  the  best  fruits  and  flowers  of  their  kind.  The  people  of  Scandinavia 
collect  tliose  hapless  beings  who  are  afflicted  with  leprosy  into  special 
hospitals.  In  Norway  there  are  two,  one  at  Molde  another  at  Bergen 
where  they  keep  in  comfort  and  ease  those  of  their  fellow  creatures  who 
are  infected  with  ibis  loathsome  and  incurable  disease.  They  say,  here 
joQ  shall  live ;  but  you  shall  not  be  abroad,  contracting  marriage  and 
transmitting  to  another  and  another  generation  your  dreadful  affliction* 
There  is  much  vice  which  is  a  leprosy  of  the  floul,  is  as  incurable,  and 
should  be  so  treated. 

But  the  curable  are  still  a  large  section  of  evil-doers.  Those  persons 
who  are  amenable  to  educational  discipline,  a  discipline  of  no  subtle  and 
recondite  sort,  arrived  at  only  by  some  difficult  process,  like  that  which 
eDsbles  men  at  last,  after  many  trials  and  failures,  to  make  a  new  die  or 
a  new  engine.  What  has  hitherto  been  done  with  the  most  amiable 
motives — nor  labor  nor  money  spared — has  almost  entirely  failed,  if  the 
figure-facts  before  us  is  any  evidence.  The  reports  of  various  charitable 
and  reformatory  societies  point  at  best  to  very  uncertain  results,  the 
larger  portion  of  those  who  are  reported  to  the  world  as  reformed  offend- 
ers— cases  of  moral  cure — are  at  best  doubtful.  They  cannot  be,  and 
they  are  Mot  thoroughly  traced.  Besides,  the  most  satisfactory  cases  of 
cure  are  of  persons  who,  having  been  taught  some  useful  handicraft,  are 
Bent  to  the  colonies  where,  labor  being  scarce  and  work  abundant,  and 
the  land  and  the  produce  of  the  land  in  excess,  the  wretched  offender  and 
mendicant,  the  transient  reformatorty,  whose  existence  has  been  that  of 
severe  continued  self-denial  or  of  criminal  abundance,  is  placed  in  a  new 
slate  of  life,  where  he  gets  £3  or  £4  a  week.  Not  much  moral  pharmacy, 
good  advice-alteratives,  are  required  to  change  the  youth  who  has  matric- 
ulated in  these  penal  schools  into  useful  and  fair-living  workers,  where 
they  must  behave  well  or  disappear  in  the  wilds.  It  is  not  that  their  moral 
nature,  not  that  the  diseased  volitions  of  their  brain,  or  it  may  be  of  a 
naturally  depraved  organization,  have  been  changed,  but  that  new  and 
large  rewards  to  industry  have  supplied  strong  motives  to  good  conduct. 
Some  few  creatures  there  are  who  are  bad,  inveterately  bad,  for  the  pleasure 
of  being  bad,  but  excepting  these,  make  it  worth  people's  while,  and  most 
will  become  honest  for  a  handsome  consideration.  At  a  familiar  united 
meeting  of  mauvais  svjets  and  of  philanthropists,  one  man  said,  '*Well,  by 
picking  pockets  and  such  like,  I  make  £l  0  a  week  (£500  a  year);  if  you 


344  TBB   IKCRBIBB   OV  MATERIAL  PBOSPBRITr.  [OttobeTj 

ifill  secure  rne  ns  mucb,  ^Hb  no  harder  work,  1  will  emigmte  to  Ae  Oip» 
at  oncp."  Words,  phraser,  moral  lessons,  good  advice,  will  not  alone  ciwt 
a  change  in  men's  conduct ;  with  snch  gentle  influences  most  be  added 
the  alternative  of  pain  and  suffering,  with  the  secured  reward  in  the  eiid> 
of  honest  food  for  honest  work.  Many  who  have  been  submitted  to  the 
materia  medka  of  the  reformatory,  have  leA  that  dispensary  in  improred 
moral  health  ;  but  th^n  tbey  were  persons  of  a  class,  hapity  rather  Dume^ 
ous  even  among  the  evil-doers,  who  wanted  no  treatment  at  all,  who  did 
wrong  once,  and  who,  if  they  had  escaped,  wonld  probably  have  plajed 
the  fool  no  more.  Many  persons  are  submitted  to  medical  treatment  who 
would  get  well  as  soon,  and  perhaps  sooner,  if  Uji  alone  ;  and  these  tre 
the  cases  which  form  some  of  the  triumphs  of  the  doctor,  and  are  the 
source  of  his  reputation.  Going  his  rounds,  an  hospital  surgeon— sa 
honest  one — said  to  his  pupils,  **6entlemen,  there  is  here  nothing  to  i^te^ 
est  us,  one  portion  of  these  patients  will  get  well  if  we  leave  them  alone,  the 
rest  wfU  die  and  we  cannot  help  them."  Some  few  moral  sufferers  are  is 
the  same  hopeless  condition,  others  can  be  cured,  but  only  by  other  treat- 
ment than  it  has  hitherto  been  the  custom  to  apply. 

[IL — Aliments. 

The  large  increase  of  material  good  things,  as  shown  by  Tables  A  and  B 
(Appendix),  has  been  chiefly  appropriated  and  enjoyed  by  what  are  called 
the  working  classes.  This  mere  numerical  quantity  inadequatdy  illv« 
trates  their  great  material  improvement,  if  we  omit  to  notice  thai  tbe 
richer  classes  of  society  have  hardly  shared  this  increase,  because  they  A^rf 
always  had  enough  and  to  spare  of  all  such  tommodities.  In  this  respeet 
they  were  equally  well  off  in  1851  as  in  1861  or  1865.  Penons  of 
£200  or  £300  a  year  and  upwards,  except  in  as  far  as  the  nnmber  of  tbe 
class  have  increased,  consume  no  more  food,  no  more  in  weight  and  nntri- 
ment  of  beef,  mutton,  bread,  tea,  coffee,  dec,  in  1865  or  1861  than  tber 
did  in  1851.  The  increase  with  them,  can  but  have  been  in  the  lonrioot 
and  extravagant  use  of  wine,  silk,  and  perhaps  a  little  extra  wool  and  cot- 
ton, which,  encouraging  extravagance  in  apparel,  ha»  probably  done  i» 
much  harm  as  good  to  the  national  morals.  This  enormous  addition  to 
the  good  things,  to  the  comforts  of  life,  has  been  appropriated  almost 
exclusively  by  poorer  persons.  During  the  15  years  this  increase  (in  addi- 
tion to  the  home  supply),  of  200  or  300  per  cent  of  aninaal  food,  235  of 
butter,  162  of  cheese,  has  been  consumed  almost  entirely  by  the  railHoo. 
The  upper  ten  thousand,  or  hundred  thousand,  have  not  had  it,  for  lbi» 
good  reason,  tbey  could  not  have  consumed  it,  "their  cup  already  nraoeth 
over."    If  they  take  more  it  is  wasted,  and  that  would  be  inoonudenbid 


1869]  THS  INOBBASS   OF  MATKRIAI.  PR08PEBIT7.  345 

seeing  that  tbey  belong  (chiefly  to  the  thrifty,  saving,  and,  as  a  consequence, 
wUdoinff^ good-managing  class. 

The  increased  supply  of  one  period  over  the  other  of  those  articles, 
chiefly  of  comfort  and  luxury,  which  are  entirely  of  foreign  growth,  as  tea^ 
cocoa,  sugar,  rice,  maize,  spirits,  is  an  absolute  increase,  and  is  not  like  the 
foreign  increase  of  one  period  over  another,  which  must  be  added  to  the 
unknofffU  quantity  of  home  produce  of  wheat,  &c.  We  know  that  the 
total  quantity  of  tea,  e,  g.^  has  increased  almost  100  per  sent,  but  we  only 
know  that  butter  has  increased  by  235  per  cent  of  foreign  butter  added 
to  the  unknown  quantity  of  home-made  butter. 

in.— Wages. 

Whatever  may  be  the  advanced  price  of  food,  &c.,  the  increasing  quan- 
iity  consumed  :s  evidence  of  increasing  ability  to  purchase. 

The  subject  of  wages  has  been  searchingly  investigated  in  the  Journal 
of  this  Society.  It  is  needless  to  weary  attention  by  any  exposition  show- 
ing how  much  wages  have  advanced  during  the  fifteen  years  under  com- 
parison. In  volume  xxiii  of  the  Society's  Journal^  Mr.  D.  Chad  wick 
states  that  wages  have  increased  in  Lancashire  in  twenty  years,  from 
1839  to  1859,  10  to  25  per  cent  in  the  cotton  trade,  and  in  the  silk 
trade  10  percent.  In  the  building  trades  wages  have  increased  11  to  32 
per  cent.  In  many  mechanical  trades  a  general  advance,  even  up  to  45 
per  cent 

In  the  South,  wages  in  the  building  trade  advanced  about  10  per  cent 
from  1851  to  1861,  and  much  more  subsequently ;  at  the  same  time 
there  has  been  a  diminution  of  the  hours  of  labor  claimed  and  readily 
granted,  on  the  plea  that  time  was  wanted  for  these  workers  to  improve 
their  minds  by  the  study  of  mathematics,  geography,  history,  &c.;  a  great 
sham  by  the  bye,  which  it  is  not  creditable  should  have  been  listened  to. 
Advance  wages  and  shorten  labor  if  you  will,  but  do  not  believe  that  much 
use  will  be  made  thereof  for  mental  improvement.  Many  of  these  people 
(and  rightly  enough)  use  their  increased  leisure  by  working  for  themselves. 
The  best  fellows  among  the  builders  and  the  like,  do  jobs  on  a  Saturday 
afternoon  if  they  do  not  idle  about,  and  even  that  is  not  so  bad  recreation 
for  men  who  work  hard  either  with  their  brains  or  their  muscles.  Study 
they  do  cot,  and  they  would  profit  little  if  they  attempted  it. 

Mr.  Purdy's  exhaustive  paper,  in  volume  xxiv,  shows  the  wages  of  the 
agricultural  laborers  in  thirty-four  counties  to  have  increased  about  12  per 
cent  from  1837  to  I860.  A  subject  of  great  rejuicing  to  all  who  know 
the  admirable  though  humble  virtues  which  illustrate  the  lives  of  that 
class  of  the  community,  who  are  at  once  the  most  useful  and  the  most 
hardly  dune  by,  the  most  patient,  enduring,  and  unoared  for,  just  because 


846  TBS  mOBKABS   OF  MATIBUL  PBOSPKBITr.  [OckUf^ 

they  have  been  the  least  troablesome,  and  have  kept  their  lorrowi  to 
themselves. 

A  few  additional  facts  may  be  interestiDj^. 

In  Kendal,  in  the  woolen  trade,  during  the  period  under  notice,  tb 
wages  of — 

Tonng  pcraoDs  haveadvaoced SO  to  fS  pereeot 

WomeD SS     ** 

Sk illed  woman,  wcrkiog  in  looms  and  machines •••  50      " 

BkUledmen  «  «  •«        6  to  10      « 

Power  loom  weaveti,  women,  from SaSdtoStSdper  week 

Bptimen,  from ••••••• ISsidtotSa      ' 

During  this  time  the  population  of  tbe  borough  of  Kendal  increased 
about  2  per  cent  only. 

Persons  in  the  web  trade,  in  Somerset,  earned  in — 

1861,MeD 12«|1861,Mmi ISi 

**      Women  aod boys. ..••.••     6b  |     **     Womenandboys 6t 

Ko  change  took  place  in  the  wages  of  letter-press  printers  from  1816, 
when  sixty  hours'  work  earned  3  3s.,  until  1866,  when  an  advance  to  36i. 
was  made,  or  9  per  cent. 

It  is  then  much  within  the  truth  to  say,  that  in  the  laat  ten  or  fiftea 
years  wages  have  advanced,  at  a  minimum,  15  per  cent;  atths  ssiim 
time  there  has  been  so  steady  an  increase  in  tbe  demand  for  workm, 
that  none  need  have  been  out  of  work  who  could  aod  wonld  work  Tbe 
demand  is  almost  above  the  supply,  or  it  hss  been  so  until  lately,  as  well 
for  unskilled  aa  skilled  laborers. 

lY. — Savinf^s  Bank$. 

The  effjMtei  deposited  in  the  savinga  banks  for  tbe  United  Eiogdosi 
was  for  the  periods — 

1F61 £SO,«77.O00 

1861 4l.64S.0  0 

1S66 • 46,228,000 

(including  the  Post  Office  Savings  Banks)  being  an  increase  in  fifteeo 
years  of  50  per  cent.  Bat,  as  Table  C  (Appendix)  ahows,  the  increase  is 
more  in  the  amount  of  deposit,  228.  2d.  and  29s.  7d.,  than  in  the  number 
of  depositors,  the  greater  thrift  of  the  tbrifly  depositors  is  better  shovs 
than  the  greater  number  of  depositors.  Thrift,  it  seems,  is  rather  s  fixed 
quantity. 

In  this  cheering  increase,  Ireland  enjoys  its  full  proportion.  Thsa,  the 
virtuous  section  of  the  people,  making  wise  use  of  prosperity,  goes  ob 


1869]  TSS  IirORSABS  OF  XATSRXJLL  PBOSPKBITr.  347 

improving  tbeir  state  of  independenoe,  for  we  cannot  believe  that  the 
dangerous  classes  make  any  considerable  deposit  in  savings  banks.  These 
have  full  command  over  other  and  ever  increasing  funds  provided  by  the 
public  for  their  relief — ^in  parochial  and  other  luxurious  charities,  in 
pillage,  in  the  warm  and  comfortable  asylum  of  the  prison-house,  the 
reformatory,  and  the  hospital,  and  now  in  the  casual  ward  of  the  union 
house.  Perhaps  of  all  modern  fancies  this  is  the  most  mischievous* 
Here  the  wandering  idler  is  supplied  with  food,  lodging,  batb,  and 
attendance,  gratis,  such  lodging  as  used  to  cost  him  2s.  6d.to  Ss.  a  week. 
The  stone-breaking  and  the  oakum-picking  is  but  nominal,  or  amusing 
exercise.  Discipline  cannot  be  enforced.  The  officials  and  others  are  so 
ill-used  alike  by  the  paupers,  by  the  humane  magistrates,  and  the  public, 
that  they  almost  give  up  their  duty  in  despair,  and  connive  at  the  ill' 
conduct  they  cannot  suppress  and  have  no  means  of  punishing.  This  is 
very  much  the  case  now  in  many  prisons,  and  other  asylums  for  the 
repose  of  eviUdoers.  It  is  only  people  in  tbe  best  moral  health  who 
deposit  in  savings  banks,  the  rest — that  is,  those  who  are  morally  diseased 
—know  better,  and  are  too  much  encouraged  in  their  unthrift 

Thus,  the  means  by  which  the  people  have  been  enabled  to  buy  an  ever- 
increasing  quantity  of  good  things,  have  increased  still/aster^  so  that  the 
thrifty  portion  of  the  humbler  classes  have  been  enabled  in  fifteen  years 
to  increase  their  savings  from  thirty  to  forty  millions.  To  say  nothing  of 
the  millions  which  have  been  added  to  their  own  or  to  the  national 
capital  by  the  richer  class,  who  thereby  have  supplied  the  improving 
fund,  wherewith  more  workers  are  better  employed.  There  is  much 
sound  political  economy  in  the  maxim  of  low  life,  "  What  are  the  rich 
for  but  to  take  care  of  and  keep  the  poor ! "  Capital  for  their  work, 
money  for  their  relief. 

V. — Emigratum* 

Emigration  for  the  ten  years  1851-61  (continued  to  the  present  time), 
has  steadily  relieved  the  labor  market.  This  is  another  cause  of  the 
increasing  wage-rate,  and  by  which  the  eaters  become  fawer  and  their 
severer  competition  is  lessened.  Thus  there  has  been  again  more  and 
more  bread  for  the  eater.  It  is  time  to  consider  if  the  State  should 
continue  at  the  public  cost  its  emigration  agency.  We  cannot  without 
limit,  be  at  once  a  nursery  and  an  almshouse  for  half  the  world,  losing  so 
many  of  our  best  workers,  and  making  our  colonies  richer  at  an  undue 
charge  to  the  mother  country,  which  is  thus  left  to  struggle  with  an  ever- 
increasing  proportion  of  lame,  lazy  and  helpless  persons  who  must  be 
maintained  by  the  labor  of  a  less  and  less  proportion  of  workers.    The 


848  THE  INOREASB   OF  XATBBIAL  PBOSPBBnT.  [Octohtr^ 

cost  of  rearing  bo  many  useful  workers,  during  the  period  of  their  mpro- 
ducti^e  growth,  is  almost  solelj  defrayed  here  in  England,  and  when  tbey 
are  sent  elsewhere^  at  our  own  cost,  or  chiefly  so ;  the  only  compeDsstion 
being  that  they  become  better  customers  to  us  abroad  than  if  thej  had 
remained  at  home.    A  farmer  would  soon  be  iropoTorished  if  he  endared 
the  cost  of  rearing  foals  or  colts,  and  was  deprived  of  his  matore  horsei. 
At  a  time  when  there  is  a  demand  beyond  the  supply  for  domesUc  servanls 
there  are  busy  people,  well  meaning  but  not  very  wise,  who,  selecting  thd 
stoutest  and  best  ordered  of  our  young  women,  send  them  carefally  oon> 
signed  to  Australia.    If  such  young  women  desire  to  improve  their  own 
condition  by  emigration,  they  ought  first  to  engage  in  some  useful  labor 
here,  and  with  their  own  saved  earnings  depart  themselves  to  other  regions* 
A  few  years  of  thrifty  labor  here,  especially  as  domestic  servants,  woald 
render  them  at  once  self-dependant  and  properly  trained  workers  elsewhere; 
in  all  respects  better  qualified  to  become  good  settlers. 

YL—Mucation. 

For  the  purpose  of  education,  or  for  that  limited  education  more  correct'j 
called  pedagogy,  treasure  has  been  liberally  bestowed.  The  sum  expended 
in  the  United  Kingdom  in  1854  was  £715,000,  which  increased  in  1865 
to  £1,369,000,  or  nearly  double.  In  1654, 1  in  38  of  the  popuUtioD 
attended  schools;  in  1865,  1  in  22  (see  Table  D,  Appendix).  A  large 
percentage  of  the  population  ought  to  have  exhibited  the  good  effects  of 
this  education  in  their  conduct  in  life,  for  during  this  time  some  at  least 
must  have  emerged  from  the  state  of  pupilage  into  that  of  adolescence  and 
active  life.  That  such  has  taken  place  in  but  a  small  degree,  it  at  all, 
subsequent  tables  will  show. 

Still  more  ought  such  good  effects  to  appear,  when  we  add  the  great 
increase  of  religious  teachers  and  places  of  worship.  Clergymen,  priests^ 
and  all  such,  have  been,  and  very  consistently,  moat  tenacious  that  religious 
training  is  of  essential  importance  in  the  States,  and  that  no  good  can  be 
expected  from  any  teaching  which  is  not  intimately  allied  with  their  own 
especial  ministrations.  Some  seven  or  eight  millions  yearly  is  appropri- 
ated to  special  religious  purposes,  and  the  sum  is  increasing. 

The  means — other  than  religious^-of  moral  and  intellectual  teaching 
have  also  enormously  increased.  ISTewspapers,  halfpenny  and  pennj 
books,  pamphlets,  serials,  works  of  art,  not  to  omit  photography,  cone 
forth  in  myriads.  Especiallv  does  the  photographic  porlr«it  maker 
deserve  a  place  in  the  ranks  of  moral  teachers.  In  these  literary  edocs- 
tional  Agents,  England  contrasts  favorably  with  France.  Three  or  (o^t 
years  ago  there  was  but  one  journal,  ^  Le  Petit  Journal,**  of  ODirenal 


r 


1869]  THB  IH0RSA8S   OF  MATXBIAL  PR08VBRITT.  349 

circuIatioD  over  the  country,  inferior  io  size  and  still  more  in  matter  to 
ny  of  our  lowest  priced  English  newspapers.*^  It  is  worth  while  briefly 
to  inquire  why  all  this  has  so  greatly  failed. 

The  pedagogy  of  education  has  little  to  do  v^ith  ciime  and  pauperism^ 
though  it  is  taken  to  be  a  specific  against  those  evils.  Reading  and 
writiog,  as  mere  reading  and  writing,  may  do  as  much  harm  as  good,  and 
cao  DO  more  make  an  educated  person  than  does  a  nen  make  a  scribe,  or  a 
box  of  carpenter's  tools  a  bost-^builder ;  yet  that  sort  of  so-called  education^ 
n  correctly  taken  to  be  a  sign  or  8ymj)ton  of  some  really  good  training 
more  or  less.  Those  parents  who  have  taken  care  to  get  their  children 
schooled  are  usually  a  good  sort  of  people,  and  have  done  much  for  their 
children  in  home  training.  As  the  weather-cook  shows  the  way  of  the 
viud,  so  the  sending  to  school  shows  the  way  of  the  family. 

Useful  educfltion  means  habitual  industrious  work  and  severely  enforced 
self-denial.  The  training  of  a  good  laborer  commences  from  the  time 
when,  as  a  boy,  he  follows  his  father  into  the  fields ;  and  so  far  from  an 
Agricultural  laborer  being  unskilled — though  unschooled — he  is  a  variously 
skilled  workman,  and,  to  be  good  for  anything  he  must  be  brought  up  to 
his  profession  from  his  early  boyhood.  It  requires  more  varied  qualities 
of  mind  and  body  to  be  a  good  laborer  than  to  be  a  good  carpenter,  whose 
tools  keep  him  square,  "  By  line  and  by  rule/'  Sbq^  while  the  other  makes 
parallel  lines  in  a  field,  with  an  awkward  thing  called  a  plough^  and  still 
more  awkward  things  called  horses. 

Further,  our  tables  show  a  sorrowful  dfssonance  between  means  and 
results,  because,  with  regard  to  females,  true  training  has  been  misplaced 
by  false  schooling.  Domestic  servants,  male  and  female,  were  one  million 
in  1861,  and  to  fit  them  for  such  useful  labors,  their  own  future  natural 
occupations  as  heads  of  families,  and  especially  as  wives  and  mothers,  the 
duties  of  the  household  afford  the  best  kind  of  training,  and  until  the  mar- 
ket for  domestic  ft  male  servants  is  full,  charity  ought  not  to  push  necessi- 
tnoua  women  into  any  other  so  appearing  more  genteel  occupations. 


*  Of  the  Btate  rf  Ifteratnra  In  1860  we  biiTe  yenr  ample  statistics.  Of  monthly  magazfnea 
Dore  or  less  deTOt^d  t<)  Action,  there  were  S,S10,000  dronlated  ai-naaUy ;  of  Jonmald  ptiMlsh- 
el  weekly,  the  chief  feature  hi  In^  tiove's,  703.00U ;  of  elo^le  rom  'Dces  issaei  at  a  prnnv,  5,(X  0 ; 
of  immoral  p1l^Uclltion»,  59.600 ;  and  of  magSjBines  at  twopence,  874,00(1,  cxclaslye  of  nectar  au 
llteratDfe,  rr listens,  temperance,  edacat^onal,  Ac  :  total.  In  ronnd  rnmberv,  8.840.000.  Con- 
paring  thte  wih  1841,  before  thi*  stamp  tix  or  adTortlsement  daty  bad  been  repealed,  we  see 
asiti.st  be  1%,C00  or  monthly  magmlnes  rirca'atei  then  oyer  9,000 000 now;  and  whereas 
thera  esl»ted  then  no  cheap  fiction  of  a  realty  wholesame  kind,  w«)  haye  now  a  circolatlon  of 
oyer  a  million  of  Joomals  *  t  a  renny  and  two'ior  ce,  cortalniof^  stories  not  classed  as  immoral, 
•gainst  onl«  r9,6UU  nf  a  notorionsly  immoral  kind.  Bat  the  rreat  impetns  to  the  spre-id  of*  heap 
litvratae  of  all  kinds  wie  glyen  by  the  repe«l  of  the  paoer  dnties  in  1861.  We  learn  by  an  arti- 
c'p  in  'he  **  BookseUr-r."  of  May  81,  t>361,  ike  materials  for  which  were  supplied  by  Mr.  Pia*  els, 
tbe  fol  owing  facta  coacerrlng  flctloo.  Three  yea*  s  after  the  repeal  of  tne  e^ci  e  there  were 
of  Joomals  eontairii'g  noyels,  sketches.  &c..  thirteen  at  a  penny  and  a  halfpenny,  with  an  ng- 
er*  gate  weekly  1-f  ue  1. 058,000  of  romantic  tale*  pnbl*i»hed  sepa  Htely,  eght  public  tior  s,  ajrgre- 
gate  li>BTie  19S.OO0 ;  of  Immoral  pnbliCAtions,  9.'  00;  of  higher  clas*  magaz  ncs,  piblleh^d  month- 
^y»^44,flBO  This  is  not  inc'nrling  relfgfoos  and  other  literatnre  where  flc  ion  was  •  spcoudary 
object.  Thus  we  Iwye  a  weekly  and  monthly  Ispue  of  respectab'e  Dobllcnt  ons  a  moat  eqaalto 
Ihe  eoMre  an'  nal  Issue  of  a  few  years  preyioua^y,  and  of  immoral  pttblioatloos  wo  have  9,000 
•ftaiof 1 59,500  thWL-Sot  ial  JScienci  Joumai. 


360  THE  IR0BJBA8B   OV  MATKRIAL  PROSPBRITT.  [Octokf, 

The  things  taught  in  a  school,  useful  as  they  may  be,  are  of  small  tiIim 
indeed,  compared  with  the  practical  training  which  girU  receive  in  that 
true  school  of  humble  life — the  kitcheo ;  where  they  are  (or  ought  to  be) 
taught  obedience^  and  required  to  perform  subordinati  labor,  drudgery  it 
may  be,  though  much  of  it  is  indeed  skilled  labor,  in  well-ordered  house- 
holds, of  an  expenditure  of  £200  or  £3,000  a  year. 

It  would  be  well  if  those  kind  ladies  who  do  so  mach  for  school  edocs- 
tion  and  out  of  door  charities,  would  inquire  if  the  true  schools  for  tbeir 
superintendence  be  not  their  own  households,  their  kitchens,  pantries, nQ^ 
series ;  if  they  cannot  teach  there  they  can  teach  nowhere.  Some  of  onr 
most  sensible  ladies  take  girls  into  their  households  for  the  mere  purpose 
of  te<iching  the  accomplishments  of  good  housewifery.  All  educsliaoal 
schemes  and  charitable  fancies  are  likely  to  do  more  harm  than  good,  if 
the  nomos  oikou  (the  law  of  the  house)  be  unknown  and  neglected.  The 
great  merchant  and  the  little  mechanic,  alike  eoUeei  the  grains  of  subsist^ 
ence,  which  in  ihe  end  the  good  housewife  dUtrihuieM  with  as  sharps 
percentage  of  saving  here  and  there  as  they  have  been  scraped  together 
by  keen  commissions  and  pro6ts.*^ 

Part  IL— Vn,  Introduction. 

All  these  moral  and  material  agents  having  enormously  increased 
during  ten  or  6fleen  years,  and  much  ahove  the  increase  of  popaUtioD,f 
we  now  seek  for  their  effects  on  the  conduct  of  the  people.  If  they  show 
no  favorable  result,  or  at  best  a  verv  inadequate  one^  we  had  better  gire 

*  Th'^  prartical  (rood  of  this  tort  of  tralntiiff,  oTon  amone  perion^  of  a  raperior  t* •«,  vsi 
belt'  r  andentood  !••  former  tim  e.  ^  e  rea  lo  McDlarm  cPs  **  LlTei  of  BritUh  ^tuwaeo,'* 
th^t,  **«B  a  farther  iitap  in  his  edncatton  Thomas  More  was  placed  In  the  famUy  of  Csrdiaal 
H orton .  I  n  conseqaenca  of  the  furm  ntn  which  society  was  th'  own  by  the  leadai  ins  it  ittoos, 
the  ODly  road  by  which  mrn  of  inferior  ra*  k  con  d  hope  to  reach  ditftinctioa  and  power  mt 
by  the  favor  of  the  great  propiletitrs  of  land,  th^ch  efecelvB*afltioa,  Ac  In  ttaar  f«Bilic«. 
also,  the  po  itoness,  elegance,  ar  d  knowler  ge  of  the  nge  were  to  be  foaod ;  for  while  the  rert 
of  the  commonity.  groaning  under  tbe  tyr  any  of  their  soperiort  and  the  tercoraef  aapertlties 
addel  the  most  abject  poverty  to  the  most  degraded  Ignorance,  the  patronage  of  'h  great  vn 
necessarily  coveted  by  men  ofleam.ngj  a  their  only  resonrc ' ;  and  uatingaiahed  sdwd  r*  hsf^ 
ing  a  reiidy  access  to  the  tables  of  i>ersous  of  c^mdltlon,  at  a  period  whin  leamli  g  from  in 
rarity,  wasEbchl  in  hi^h  e'timat  on,  brought  a  ong  with  th^m  a  compa  ative  desree  of  iA&'r- 
mat  on  and  refl  .emeat.  At  the  same  t-me  the  internal  economy  or  a  great  man's  Cuntiy,  prs- 
sentlng  a  simi  ar  appearance  wica  that  of  ihe  monarch  on  a  nna)l<  r  scale,  was  the  prop* 
school  for  acqn'rinff  thoae  Hccomplishments  and  that  addmsa  by  which  auocess  at  eoan  might 
aftet warcia  be  insured.  Jnfloenced  by  the  cuosl  erationa  of  theae  advantagee,  penona  off  o4 
condition  were  eager  to  p  ace  their  a^ns  in  the  flimllles  ot  the  mtt,  aa  the  snrest  r«d  to  for- 
tune, m  this  stnt  on  it  was  not  ae  onoted  d  grading  to  anb  oil  even  to  menial  (Ac>  s;  vhUe 
the  greater  t  baron«  or  the  realm  were  prond  to  ofli-Jate  aa  stewards,  en  -bearers,  OBfreta  toths 
monarch ;  a  >onth  of  good  lamih  could  w  nt  at  the  ta  «ie  or  carry  tbe  train  of  a  mao  of  hirt 
condition  wi  tbont  any  loss  of  dignity.  The  patronage  of  the  gr  a>  maa  being  natora  )y  secsrn 
to  tho^e  who  had  acted  as  hts  inmates  and  retainers,  rdmiss  on  into  the  ftmili  s  of  ihepna- 
cipal  officers  of  the  ht  ae,  who  had  preferment  moet  directy  n  their  power^was  paitkoiary 
courted.**  This  ilmstrat  s  a  custom  common  in  B  >gian«i  amoogalclaasaa,  aadcoatiaBM 
from  I  he  tim  t  of  Henry  VIII,  toward  the  end  of  last  cenmr/. 

t  The  smaller  popu-ation-  ncrsa«e,  when  'he  whole  United  Kingdom  it  noted,  arises  from 
the  fact  that,  while  the  outflow  of  the  people  from  Ireiani  haa  reduce  i  the  rednodaat  vof^ 
tion  the  e,  the  large  mierat  on  ol  theoi  Into  Great  Britain  from  Ireland  has  unduly  n^*^ 'M 
percentage  of  increase  here,  and  has  aohappily  Increaaed  in  lar^re  r^tio  heiil-ccndl  I'^sed 
populttion.  I  he  Irii4i  constitute  an  uafd  r  propvrtion  of  our  ciimlnaa,a  stale  of  tbi^ 
Imminently  dangerou  as  well  moral  as  political,  and  one  with  whieh  the  QoTsminsai  lant 
concern  itseU^  or  some  catastrophe  may  oe  feared. 


1860]  THB  IKORIASS   OF   MATBAIAL  PBOSFBRITT.  851 

Up  the  expense  and  save  onr  fruitless  toil.    Bat  these  agencies,  connter- 
ftcted  as  they  have  been,  are  still  of  priceless  value,  and  had  it  not  been 
for  their  salutary  force  we  should    have  sunk  lower  in  pau}>eri8m  and 
crime.    The   small  dimunilion  of  crime — where  crime  has  diminished,  a 
grave  matter  of  doubt — is  by  no  means  commensurate  with  the  prodigious 
increase  of  all  these  wholesome  influences,  which  would  have  produced  on 
the  largest  scale  their  own  specific  effects,  had  they  not  been  so  gratu- 
itously disturbed  by  evil  agents.    What  those  agents  are,  is  well  enough 
known  and  understood   by  thinkers,  though  not  very  readily  admitted  by 
people  in  general,  and  scarcely  ever  declared  in  public.    They  form  one 
group,  and  one  alone.     All  has  been  going  on  for  good  in  this  country, 
but  a  sentimental  humanity,  interfering  with  the  criminal  law  and  prison 
discipline,  and  an  inconsiderate  multiform  charity,  which  have  put  out  of 
gear  the  action  of  the  laws  of  nature  and  of  man.    Let  any  man  tell  the 
world  why  pauperism  increases,  why  crime  increases,  or  why,  at  best,  do 
both  remain  stationary,  except  as  both  are  influenced  by  bad  discipline, 
and  he  will  discover  the  philosopher's  stone.    The  inquiry  is  exhausted  ; 
none  will  say  that  the  caui^es  enumerated  if  left  undisturbed  can  produce 
any  effect  upon  society  but  good.     All  except  one,  and  if  that  one  be  not 
the  disturbing  evil  hand,  which  puts  out  of  order  all  the  rest,  then  why 
do  vice  and    misery  so   increase   under   our   hands  f     The  increase  must 
have  a  cause,  and  there  the  one  cause  lies,  patent  before  us ;  for  if  it  be 
not  that,  then  we  have   an   uncaused    effect,  or   the  cause  is  still  latent, 
unknown,  undiscovered,  and   hardly   to   be  reached    by  human   inquiry. 
But  to  say  that  the  cause  which  has  been  just  alleged  is  not  thd  true 
one,  is  to  deny  all  human  experience,  to  deny  one's  own  instincts,  and  to 
ignore  the  laws  of  our  moral  nature,  indeed  of  the  whole  animal  world. 
If  more  food,  more  employment,  more  social  kindness,  do  not  cause  those 
wLo  are  under  their  influence  to  behave  better — in  truth  to  be  happier — 
there  ncusi  be  some  concealed  distuibance  to  look  after.     If  a  man — any 
one  man — having  all  these  things  in  abundance,  yet  sink  down  in  atrophy, 
there  surely  must  be  some  diseased  action,  in  his  own  nature,  or  in  some 
poison  with  which  he  is  infected  that   resists   and   repels  all  nutritive 
agents, 

VIII. — Pauperism, 

The  forces  which  have  produced  so  large  and  increasing  a  mass  of 
pauperism  (see  Table  E,  Appendix)  have  been  too  energetic  to  be  resisted 
with  much  effect  by  the  vis  medicatrix  naturos,  aided  by  our  resources  of 
moral  and  intelUctual  hygiene  and  pharmacy.  The  political  physician — 
statesman  or  philanthropist — ^has  applied  the  costliest  remedies  of  his  art, 
for  many  a  long  year,  and  here  is  the  result ;  but  a  sound  education  by 


952  TtTS   INCRIEASX   OF  HATBRIAL  PROflPXRIIT.  [OdAfr^ 

the  )aw  and  by  public  opinion,  would  long  ere  this  have  taught  men,  and 
iuforced  them  at  their  peril,  to  provide  in  prosperity  against  advenity. 

It  is  no  new  thing  to  be  told  the  truth,  that  the  pauper  must  be  in  all 
respects  worse  off  than  the  humblest  seirsupporting  laborer;  yet^M  sd 
illustration  of  the  contrary  practice,  a  man  was  some  weeks  Niuse  taken 
into  a  union  house  near  London,  he  said,  *' If  I  had  known  how  com- 
fortable I  should  have  been  in  this  place,  I  would  not  have  struggled  as  I 
did  all  last  winter.*'  We  have  weakened  all  the  motives  to  industry  and 
thrifL  The  sound  rules  of  government  are  as  old  as  reason  \Udi 
They  are  taugbt  clearly  enough  in  Scripture,  and  Tacitus  tells  ua:  *'Bj 
false  compassion  we  injure  the  community;  industry  will  go  to  nrio; 
sloth  will  predominate ;  men  will  no  longer  depend  on  themselres,  bat 
having  from  their  own  conduct  nothing  to  hope  or  fear,  they  will  look  to 
their  neighbors  for  support';  they  will  first  abandon  their  duty,  and  then 
be  a  burden  on  the  public."  Surely  some  of  the  errors  which  caused  the 
ruin  of  old  Rome,  were  not  such  as  are  doing  the  mischief  to  old 
England  \ 

IX — Insolvency. 

Insolvency  may  be  called  the  pauperism  of  the  middle  and  upper 
classef:,  and  insolvency  laws  will  be  wholesome  in  as  far  as  the  vices 
which  cause  insolvency  are  thereby  restrained.  But  as  botli  laws  now 
exist  and  are  administered,  they  form  an  influence  in  onr  national  system 
of  education,  not  for  good  but  mainly  for  harm,  and  so  far  the  people 
have  a  bad  education.  Fifty  years  of  incessant  changes  have  left  the 
insolvency  laws  in  a  worse  condition  than  at  any  former  period.  Sach 
laws,  to  be  effectual,  ought  to  restrain  by  punishment  those  who  by  wilfol 
and  avoidable  conduct  will  not  or  cannot  pay  what  they  justly  owe. 

We  know  little  of  the  magnitude  of  insolvency,  we  know  not  the  true 
number  of  insolvents,  nor  lh«  amount  of  treasure  of  which  they  despoil 
their  creditors.  It  would  be  one  step  towards  a  refonnation  of  the  law,  if 
we  were  informed  yearly  of  our  losses  by  insolvency,  as  we  are  of  our 
losses  by  pauperism. 

Some  twenty  years  ago  the  estimated  loss  was  £50,000,000,  and  in  all 
probability  it  is  more  now,  especially  when  we  add  the  gigantic  disasters 
of  1866  and  1867,  to  which  belong  the  laige  and  new  class  of  limited 
liability  insolvencies. 

In  the  year  1865,  out  of  8,^00  baukruptcies,  nearly  6,000  were  upon 
the  petition  of  the  debtors — the  wrong-doers — seeking  the  protection  of 
the  law  against  those  they  had  injured.  And  5,200  trust  deeds  show 
how  injured  creditors  submit  to  any  terms  rather  than  accept  the  assist- 
ance of  the  court.    The  shades  of  difference  between  many  of  these  cases 


1869]  THB  IVOBSABB    OV  MATERIAL  FR08PERITT.  353 

and  compounding  felony  itself  are  not  morally  very  distinguishable.  In 
one  case  lately  h  dividend  of  9d.  in  the  pound  legally  satisfied  debts  of 
£2,000,000,  and  in  another  case  the  like  dividend  on  £500,000.  Such 
dividends  on  enormous  debts  are  not  rare  (see  TimeSj  13th  and  17th 
February,  1868).  We  sometimes  read,  "One  murder  makes  a  villain, 
thousands  a  *^  hero." 


X.— Police. 

Police  is  a  transition  force,  intermediate  between  those  agents  which 
improve  the  education  of  the  people,  constrain  good  conduct  and  prevent 
crime,  and  those  which  discover  and  bring  crime  to  punishment.  lb  has 
now  grown  up  into  a  large  army  (1866)  of  23,728  men,  costing  £1,827,- 
106,  yet  this  force  has  with  diflBcuIty  prevented  things  from,  becoming 
mnch  worse.  Better  results  ought  long  ere  this  to  have  appeared.  An 
efScient  police  restrains  crime  as  well  as  detects  it,  but  it  does  not  correct 
the  tendency  to  crime — it  does  not  reform  depraved  natures — it  only  ren- 
ders the  development  thereof  into  active  life  more  difficult  or  impossible. 
When  we  put  a  drunkard  under  restraint,  we  prevent  but  do  not  reform 
hill.  The  good  citizens  are  mercilessly  taxed  to  restrain  evil-doers.  A 
much  less  costly  apparatus  would  control  the  desire,  and  would  therefore 
Id  the  end  effectively  and  permanently  reform  the  wicked.  That  is  to 
say;  humane  discipline  would  present  a  stronger  motive  to  work  and  take 
care  than,  as  is  now  don«,  to  be  lazy,  dishonest  and  cruel. 

When  it  is  said  crime  increases,  the  answer  is  often  made,  ^*  Aye,  but  a 
vigilant  police  brings  more  crime  to  light."  There  is  much  fallacy  in 
this ;  the  truth  being  that  for  one  crime  that  is  detected  by  the  police, 
there  is  many  which  are  prevented.  It  is  good  to  prevent,  but  it  is  still 
better  to  reform  ;  that  is,  to  diminish  t^e  power  of  th^  motives  within  a 
man  which  urge  him  to  crime,  by  the  active  presence  of  counter-motives, 
rather  than  to  restrain  him  in  the  deed  he  desires  to  do,  by  the  presence 
of  merely  repressive  forces  acting  upon  him  from  without,  which  do  not 
lock  him  up  truly,  but  which  hold  the  key  before  his  eyes.  All  thi§  is 
only  force  from  without,  acting  on  a  weaker  force  within.  We  want 
men's  conduct  under  their  own  will,  to  be  directed  in  the  right  course  by 
the  energy  of  motives  to  do  well  being  stronger  than  the  motives  to  do 
evil.  The  one  set  of  motives  being  of  an  agreeable  kind,  the  other  being 
of  a  very  disagreeable  but  useful  kind,  i.  e.,  reward  and  punishment. 
Wcrk  and  food,  or  pain.  Respect,  peace  and  comfort  on  one  side,  or 
sharp  suffering  on  the  other.  Bread  earned,  or  stripes  inflicted.  **  Pris- 
ons' bonds,  bread  and  water,  will  put  sense  into  a  fool's  head."  They 
knew  that  more  than  two  thousand  years  ago  in  ancient  Greece. 


354  THE  UrOBKiSB   OW  liJLTBRIlL  PROSPXBITT.  [Ociofcf, 

The  vulgar  notion  of  what  is  due  to  policemen,  who  are  officers  ot  the 
law,  is  illustrated  by  the-  treatment  they  receire  at  the  hands  of  the  lover 
orders.    In  the  whole  metropolis,  for  assaults  on  peace  oflScers, 


CoDTicted,  in  the  aTenge  of  three  yn,  1850-'62 s^S 

•*  '60-'62 J.IM 

•  «  'es-'es %i\% 

Andinooa  year,  1866.. • .• %fi\i 

being  a  great  decrease,  when  we  note  the  increase  of  the  Londoo  popoli- 
tion.  In  this  part  of  education  there  has  been  a  great  improremeot, 
because  for  this  class  of  offences  the  punishments  haye  been  severer.  Of 
3,543  offenders,  a  total  of  otilj  80  wer^  committed  for  trial  (1851),  bat 
of  the  smaller  number  cf  3,123  in  the  period  1861,  174  were  so  eommit- 
ted.  More  persons,  therefore,  were  formerly  treated  with  undue  tender- 
ness, i.  e,  they  were  badly  educated,  and  the  safety  of  peace  officers  wis 
less  respected.  The  law  has  assumed  its  more  humane  severity,  its  moral 
education  has  improved,  and  we  trace  its  good  effect  in  the  better  behi- 
vior  of  the  people,  and  in  the  less  suffering  of  the  police.  The  persoa  of 
the  humblest  peace  officer  ought  to  be  as  sacred  as  that  of  a  jadgeor 
bishop,  and  protected  by  unusual  severity.  No  man  should  be  allowed  to 
resist  him  or  raise  a  hand  against  him.  The  civilization  of  aeonotrris 
low  indeed  while  such  grievous  cruelties  inflicted  on  policemen,  especially 
by  street  ruffians,  are  but  slightly  punished,  regarded  with  apparent 
indifference  by  the  public,  or  are  considered  to  be  equitably  compeossted 
for  in  their  wages.  A  sharp  flogging  ought  with  utmost  certainty  to  he 
the  penalty  for  a  kick  or  a  blow  on  a  peace  officer.  Be  it  right  or  wroog, 
the  arrest  of  any  one  by  a  police  officer  must  be  absolutely  and  iovalij 
obeyed.  To  be  innocently  taken  in  hold  is  a  disagreeable  thing,  but  it 
cannot  be  aitoge^ier  avoided ;  it  is  one  of  the  misadventures,  one  of  th« 
accidental  costs  as  it  were,  which  all  must  lay  to  their  account  as  the 
price  of  so  much  protection. 

XI. — Crime. 

The  alteration  of  the  law  in  1854,  which  extended  the  power  of  sum* 
mary  conviction  before  the  magistrate,  so  disturbed  the  uniformity  of  for 
nier  returns  that  they  now  cease  to  be  comparable.  1861,  as  compared 
with  1851,  shows  a  considerable  diminution  in  the  commitments  for 
crimes  (except  the  more  heinous  ones),  not  because  such  crimes  have  acta- 
ally  diminished,  but  because  they  are  differently  treated.  For,  while  the 
commitments  have  decreased,  the  summary  convictions  for  similar  eriaMs 
have  increased ;  many  offences  which  used  to  pass  to  higher  coarts  ara 
now  decided  by  magistrates.    Thus: 

The  average  Dumber  of  persona  aimilarly  treated  tiX  the  three  jtan 


1869]  TBM  UrORSABt   OV  MATXRIiX  PBOBPSRHT.  365 

1857-59  was  250,619,  or  128  in  10,000  of  the  population ;  for  the  three 
years  1800-2,  200,084,  or  181  in  10,000;  in  1868,  383,641,  or  138  in 
10,000;  aDd  for  the  three  yeara  1864-66,  317,568,  or  149  in  10,000. 
But  there  were  committed  for  trial  or  bailed,  in  the  first  period,  27,427 ; 
io  the  seoond  period,  18,106 ;  and  in  the  third  period,  16,155 — ^making  a 
total  for  the  first  period,  or  three  yeara*  average,  278,044  ;  second  period 
282,202 ;  and  for  the  third  period,  1864-66,  322,953— being  an  increase 
of  16  per  cent  in  ten  years,  while  the  estimated  increaie  of  population  has 
been  10  per  cent. 

AgaiD|  the  average  number  of  persons  oommitted  or  bailed  were,  for 
seven  years,  1848  to  1854,  e.  e^  before  the  change  in  the  law,  28,125 ;  for 
seven  years,  1856  to  1862,  t.  0.,  after  the  change,  18,366. 

Taking  the  four  years  after  the  alteration  of  the  law,  1856  to  1859,  the 
average  number,  18,559  ;  increasing  afterwards,  from  1860-63,  to  18,786; 
wLiie  the  class  of  commitments  for  one  year,  1864,  were  19,506  ;  1865 
19,614;  1866,18,849. 

Again,  in  five  years  ending  1861,  inclusive,  the  totals  were  90,234,  and 
io  five  yeara  ending  1865,  inclusive,  98,265. 

The  increase  of  crime  coincident  with  relaxed  punishments  is  shown 
over  a  period  of  forty  years,  from  1817  to  1857,  in  table  F,  appendix. 

OOfences  against  property  without  violence  were,  in  1651,  21,489;  in 
ISOl,  12,606 — a  decline  caused  by  the  Act  of  1854  ;  in  the  five  yeara 
eDjiiig  1861,  62,828,  and  for  the  &ve  years  ending  1865,  67,146 — being 
an  increase  of  4,318,  or  6.9  per  cent 

Oifences  against  property  with  violence  decreased,  1851  to  1861,  from 
2,013  to  1,905;  but  for  the  five  years  ending  1860  the  total  of  these 
clTences  was  9,351,  while  for  the  five  years  ending  1865  they  increased  to 
10.521 .  In  burglary  and  housebreaking  there  has  been  very  great  increase. 
Malicious  offences  against  property  (including  arson)  in  1851  were  270  ; 
iQlSGl,257.  But  for  five  years  ending  1860  these  offences  were  947, 
and  for  five  years  ending  1865,  1,816.    A  singular  increase. 

Otfences  of  all  sort  against  the  person  in  1860  were  10,043,  and  in 
lS6o,  12,146.  Assaults  of  all  kinds,  committed  or  bailed  in  1860  were 
4,301,  and  in  1865,  5,814.  In  the  year  1865  the  total  of  assaults 
brought  before  magistrates  was  60,406,  and  on  peace  officers,  included  in 
t!]e  above  (one-fifth. of  the  whole),  12,270. 

Of  murders  and  murderous  assaults  the  total  of  five  vears  ending  18G0 
was  2,8  6,  and  1865,  2,585.  The  total  of  ten  years  ending  1856  and 
1^66  were  20,219  and  22,589,  or  about  ten  per  cent  increase.  (Tables 
^T  and  H,  appendix.) 

Crimes  of  violence  indicate  a  more  depraved  state  of  the  moral  sense, 
and  are  very  specific  tests  of  the  low  state  of  edncation,  sot  of  the  peda- 

2 


856  THB  INOBSABS  Of    MATBEUL  nOflPBBIlT.  [OcUikir, 

gogiie^  but  of  publio  opinion  and  of  the  law — the  law,  which  the  all- 
powerful  fichoolmaater.  There  has  been  so  much  talk  about  capital  punisli- 
ment  of  late,  in  which  an  affectionate  interest  in  the  blood-guilty  has 
been  strong!/  put  forth  in  richl  j-colored  relief,  while  the  yictims  sad  their 
ruined  families  have  been  left  in  darkest  and  most  neglected  shade,  that 
public  opinion  seems  to  have  lost  much  of  its  horror  and  all  of  its  holy 
anger.  Tet  venerable  authority  says,  **  Ye  shall  take  no  satisfaction  for 
the  life  of  a  murderer  which  is  guilty  of  death,  but  he  shall  surely  be  pal 
to  death."* 

We  know  but  little  of  the  crime  of  murder.    In  the  year  1B66  there 
were — 

Yerdicta  of  murder  by  inqoeata • •••••••••• M 

Reported  by  police Ill 

Gommitted  for  trial.. ••.. 51 

Acquitted  or  inaaoe • • 24 

Beotencedto  death.. , •••  26 

Siacnted II 


So  that  of  notoriously  known  murderers,  12  only  met  a  righteous  doom 
out  of  272,  or  1  in  about  23.  But  with  the  greater  sharpening  of  men's 
wit  by  education  and  reading,  it  is  to  be  feared  that  deeds  of  death  hare 
become  more  subtle  and  refined,  and  more  scientifically  perpetrated 
Undiscovered  murder,  as  by  poison,  is  practised  to  a  great  extent  in  Eng- 
land, as  well  as  in  other  parts  of  the  world.  We  know  this  by  the  testi- 
mony of  competent  persons,  especially  doctors.  272  doubled  will  hH 
short  of  the  total  of  lives  sacrificed  yearly,  encouraged  in  great  part  by 
fanciful  legislation  and  literature. 

The  proportion  of  convictions  for  serious  offences  has  in  a  small  d^ree 
declined  in  the  ratio  of  population,  but  even  with  this  improvement,  the 
increased  cost  of  our  police  may  indeed  be  grudged  (see  Tables  I  and  K, 
Appendix.)  This  insignificant  result  is  at  last  obtained  only  by  an 
oppressive  burden  of  two  millions  of  money  yearly,  and  by  an  inglorioas 
abstraction  of  an  army  of  now  more  than  24,000  stalwart  men,  at  tbe 
most  energetic  period  of  their  lives,  from  the  productive  industry  of  the 


«  Aodent  GermaiiB  ba^  no  acniplea  about  pnbUc  executions :  on  the  contimiy,  thej  tboagbt 
the  JuBt  godB  themselTM  mtgntfltly  preside  orer  these :  that  thet e  were  a  solemn  and  kiflMi 
act  of  worship  ii  rightly  done.  Wnen  a  German  man  oad  done  a  crime  deeerring  dc«th,  thc| 
In  solemn  general  assembly  of  the  tribe  doomed  him  to  die  with  ignominy.  Oevtala  crtassi 
there  were  of  a  sQpreme  nature  ;  him  that  had  perpetrated  one  of  these  they  bedere  0 
bare  declared  himself  a  prince  of  sconndn^ls.  Him  once  oonTlcted,  they  laid  hold  of— mKhicf 
doubting— bore  him  after  Jadgment  to  the  most  conrenlent  peat  bog,  pinnired  Mm  n  there, 
drore  an  oaken  frame  down  owvt  bim,  solemnly  in  the  name  of  gods  and  men.  *'Tbcfc, 
prince  of  scoundrels,  that  is  what  we  have  had  to  think  of  thee  on  dear  acqnafBtanee;  ov 
srim  good  night  to  thee  Is  that !  Lie  there,  and  be  oar  partnership  with  thee  dfesolvcc 
bencelbith.  It  wiU  be  better  for  ns,  we  Imagine  r *— ''Model  Fziaonut**  by  TboauM Cai)^ 


1869]  THE  XVOBXlflB   OV  IIATBRIIL  PROSPXHnY.  357 

couDtrj.*  The  game  hardly  pays  for  the  candle.  More  wholesome  and 
less  costly  means  are  at  hand,  bad  we  the  energy  and  benevolence  to  use 
them.  But  while  this  small  improvement  is  concurrent  with,  as  we  see 
all  along,  an  enormous  increase  in  all  the  material  and  moral  agents 
which  ought  to  diminish  crime,  however  much  they  may  have  aided  to 
the  comfort  and  have  caused  a  decrease  in  the  physical  sufTering  of  multi- 
tudes, they  have  not  done  the  best  part  of  the  work  expected  of  them. 

OSm,  nrOLAHD    AKD  WALU,  OOMVIOTBD  AKD  PDinSBID.f 


Nnmber  of 

Batio  par  cent 
of  crlminala 

Number 

erimiiial  prieoners 

Total 

■ammarlly 

fentenced 

to  popnlatlon 

of 

punished. 

and  convlcUd. 

conTictad. 

offenden. 

1851 

J    cannot  be    ) 
'  *       ( iscertained. ) 

21,679 

0.12 

1861 

263^10 

18,878 

0.07 

277,889 

1862 

272,969 

16,812 

0.08 

288,281 

1868 

288.641 

16,799 

O.OS 

299,440 

1864..... 

800,781 

14,726 

0.07 

8l6,45t 

1865. •••, 

812,882 

14,740 

0.07 

827,622 

1866 

889,091 

14,264 

0.07 

868,846 

In  respect  of  religious  training  there  were,  on  the  Ist  of  January,  1862, 
cut  of  a  total  of — 

Prisoners  in  England  Wales 26,1 58  4,189  or  i  Roman  Catbolics 

Pqpalation  being 20.000,000      1,600,000  or  M  8th  only  ditto. 

Thus  the  Catholic  offenders,  instead  of  biiog  1  in  13,  were  1  in  6. 

Pri  ooers  in  Liverpool •••••  888  486,  or  above  one  half. 

Popolation 448,874  180,0  0,  or  about  1  in  H* 

Prisoners  in  Ireland 2,888  2,488,  or  six  seyenths. 

Population 5,764,648  4.490,688,  or  near  four-fifths. 

Thus  in  Ireland,  where  the  people  are  under  the  strictest  ecclesiastic 


•  The  total  charge  ot  the  criminal  classes  was  stated  In  a  daily  paper  in  the  year  1S66  :* 

£       B.    d 

Folloe 1,827,10516    J 

Paid  by  treasury  for  criminal  prosecntlons • 148,511    6   6 

Cost  of  prisons 614,677  12    8 

Coi»t  of  convict  prisons 287,888    2  .. 

Bc'brmatory  schools  (treasury) 61t784   6    1 

Industrial  schools. 18587  10   6 

Criminal  Junatlcs 45,087  W  .. 


Totil 1,987,967    6   4 

—to  which  must  be  added  the  special  cost  Incurred  by  prosecutors,  the  earnings  of  thieves 
while  followina  their  profeseloa,  and  the  in  identa  but  great  waste  and  destruction  of  prop- 
erty.   It  is  no  exaggeration  t » pat  this  at  £7,000,000,  or  £d,OOJ,000  more. 

t  The  convictions  in  Ireland  were,  in  1861. 14,877,  but  from  1861  to  1866  the  number  declined 
from  8,971  to  9.668,  the  averdgo  of  five  years  b  ^iHg  8.90S  But  the  greAt  decrease  of  criminals 
of  iHteyeara  In  Ireiand,  has  been  apparently  i«  lowed  by  a  corresportding  increase  in  the 
United  States,  as  wcl*  as  by  an  undue  proportion  of  Irish  rffcndf  rs  In  Lngland.  Of  80,582 
persons  ntt-  sted  in  New  York  (popnlfttlon  805,651)  during  1867, 88,188  were  natives  of  Ireland, 
2,704  of  England,  910  of  Scotland.   Thus  nesriy  one-half  of  the  total  offenders  were  Irish. 


358  THS  IK0EXA6B   OV  IfATERIAL  FROBFBBITr.  [OcUAff^ 

discipline  and  exclusive  infallible  teachiogi  the  ofienden  are  6  out  of  7 
instead  of  being  4  out  of  6. 

PrisoDera  In  ^eotlaod  of • .  •  8,155  1,52S  wen  Cfttholica. 

Popolatioo 8,061,829* 

The  state  of  education  among  offenders,  like  all  else  belonging  to  tliat 
class,  18  beset  with  trick,  deceit,  and  fraud.  Thej  oome  to  prison  sgaio 
and  Dgain,  and  every  time  tbej  report  themselves  illiterate,  though  \htj 
have  been  taught  as  often  to  read  and  write.  More  schooling,  and  ]m 
oakum  picking,  result  naturally  in  quick  progress  in  learning,  espedallj 
when  the  learning  is  ot  an  old  lesson,  which  s^hows  a  good  Isd  or  good 
man,  and  obtains  a  better  character  from  the  achoolmaster  snd  the 
chaplain. 

These  are  among  the  reasons  why  so  large-  a  proportion  of  offenders 
appear  to  be  illiterate,  and  they  will  ever  continue  so  until  a  compulsory 
system  gives  opportunity  to  all  of  the  population  to  learn  to  read  and 
write,  who  are  not  naturally  incapable  of  doing  so,  and  they  are  rather  a 
eonsiderable  number. 

Iq  our  reformatories  and  prisons  ^e  teach  evil-doers  mechanical  trades, 
and  thus  change  them,  at  the  public  cott,  from  unskilled  into  skilled 
workers.  Offences  are  profitable  to  them ;  they  are  rewarded ;  tberebj 
they  are  enabled  to  earn  higher  wages  when  they  come  out  of  prisoo. 
"  II  one  has  a  protecto*'  he  escaoes  from  a  murder  with  only  two  or  three 
years  of  imprisonment.  The  bagnio  at  Rome  is  not  a  very  bad  place. 
The  prisoners  acquire  a  trade  there,  and  on  returning  vo  their  villages  are 
not  dishonored,  but  rather  feared,  which  is  often  of  utility."  ("Italy,'' 
by  H.  Taine.)  Wordly  London  thus  imitates  the  prison  discipline  of 
Holy  Eonie,  and  the  results  are  singularly  alike.    How  extremes  meet! 

The  table  L,  showing  the  number  of  fires  in  London,  is  painfully  soi;- 
ge^tive  that,  with  increasing  education  and  prosperity,  people  bare 
become  more  and  more  careless,  or  worse. 

Incendiarism  is  a  crime  second  only  to  murder;  in  some  foims  ear 
ancestors  regarded  it  as  of  equal  atrocity.  The  total  of  commitments  for 
malicious  off^^noes  against  property  of  this  kind,  in  five  years  endiog 
1866,  were  804;  1862,  670 ;  1866,  1,231. 

XII.-^  Conclusion* 

The  most  elaborate  statistical  tables  leave  our  knowledge  of  crime  still 
uncertain.  The  crime  which  travels  on  to  punishment  is  but  a  small  pti 
of  that  which  comes  within  the  first  grip  of  the  officers  of  justice,  an«l 

*  Oat  of  thU  number  ihe  Irisb-bora,  according  to  the  cen•n^  were  904,001^  or  6.1  per  cii^ 

f 


1669]  THS  EN0RB48B   OF  MATXRIAI.  PROSPBRIIT.  859 

that  IB  only  a  fraction  of  the  crime  which  is  known,  but  passes  on 
UDheeded,  even  though  it  be  murder,  to  which  must  be  added  that  stih 
largest  part  of  all  which  is  nnknowD,  and  escapes  with  complete  impunity 
itmaj  be  for  years,  or  for  ever. 

The  causes  of  crime  in  England  are,  in  addition  to  natural  depraved 
orgaDization,*  the  carelessness  of  people  with  regard  to  person  and  pro- 
perty. People  ought  to  go  about  armed,  as  in  former  times,  to  resist  the 
ruffian ;  and  they  ought,  aa  a  part  of  their  education,  to  be  trained  to 
defend  themselves.  When  there  is  danger  they  cry  "  Police,"  who,  in 
order  to  answer  effectually  the  cry,  had  need  be  20,000  in  London  alone, 
instead  of  7,000.  One  ruffian  disabled  on  the  spot  is  more  exemplary 
than  many  punished  after  the  slow  and  very  uncertain  process  of  law* 
There  is  also  the  reluctance  of  people  to  prosecute,  because  they  think  it 
amiable  and  virtuous  to  forgive  offenders;  and  further,  there  is  the 
expense  and  trouble  of  prosecution,  and  the  risk  of  considerable  ill- 
treatment  in  the  court  of  justice  itself  by  barristers  and  others  concerned 
in  the  defence.  He  must  be  a  very  enlightened  philanthropist,  or  a  very 
severe  and  almost  malignant  persona  who  will  nowadays  seek  to  punish 
an  offender.  Juries  will  hardly  convict  in  the  face  of  clearest  evidence ; 
aod  judges,  partaking  of  the  gentle  tendencies  of  the  age,  pass  trifling 
sentences  quite  out  of  all  proportion  to  the  offences  ;f  and,  when  all  is 
done,  and  death  or  some  long  period  of  penal  servitude  is  the  culprit's 
doom,  in  comes  the  Secretary  of  State,  who  reprieves  and  commutes.^ 
A  remarkable  illustration  of  tjiis  was  shown  at  the  Thames  Police  Court, 
2dd  February,  1868,  where  a  man  was  convicted  as  a  begging  impostor, 
having  been  of  course  at  large,  although  within  ten  years  he  had  been 
sentenced  to  no  less  than  twenty-three  years'  imprisonment — twice  for 
forgfery,  once  seven  years,  and  once  fourteen,  and  thrice  liberated  on  a 
ticket  of  leave.  This  is  indeed  *'  making  a  scarecrow  of  the  law  ;''  but 
old  birds  are  not  frightened  from  their  pilfering  ways  by  such  scarecrows. 
Whatever  the  punishment  may  be,  it  should  be  strictly  carried  out. 
Destutt  Tracy  says, '' Les  plus  puissans  de  tout  les  moyens  moraux,  et 
anpres  desquels  les  autres  sont  preque  nuls,  sont  les  lois  r^pressives,  et 
leur  parfaite  et  enti^re  execution.** 

*  Of  which  too  little  heed  is  taken.  Dr.  Qgy.  who  brlDgs  a  rare  but  Indiapeiisable  patho- 
loglCA]  knowledge  to  bear  njpon  this  and  kindred  object^  haa  indldonaly  treated  it,  in  the 
''  TransaetionB  of  the  Social  ticience  Aasoclatton  Ibr  1863/* 

t  Onr  prison  discipttne  itself  ie  a  satire  on  pnnithment.  ▲  troublesome  Jade  in  Hollowaj 
Oaoi  works  ten  honre*  hard  labor,  i.  #.,  in  piekloff  three  poanda  of  oakum,  whUe  a  poor, 
bonett  woman  at  Rotherhithe  must  pick  more  than  six  pounds  to  earn  eoe  shilling;  aod 
while  a  labor  r  in  Sussex  earns  ISs.  a  week,  a  scoundrel  in  Woking  Prison  costs  91s.  a  wedc, 
aod  wkile  detained  in  Newgate,  he  costs  £9  a  week,  or  more  than  a  iBlOO  a  year,  the  salary 
of  many  hundred  clergymen. 

t  Two  cases  of  mitearriage  of  Justice  furiously  illustrate  the  administration  of  the  law. 
PallazTlni,  an  Italian,  in  1866  was  convicted  on  clearest  eridence  of  the  murder  of  one  Har- 
rinston.  but  escaped  at  last  on  the  confession  of  a  relation,  and  on  the  evidence  of  a  fresh 
batch  of  Italian  witnesses.  -  rabclsco  Olardiniere  in  1866  was  convicted  f>r  the  murder,  on 
equally  good  evidence,  of  a  German  sailor  at  Cardiff,  but  to  whom  a  pardon  was  granted  on 
condition  ot  his  Isaylng  the  oonntzy* 


360  TB8   INOBKASI   OF  MATBRIil.  VtLOBPXBJTT.  [Odokt, 

It  is  a  failing  of  the  multitude  to  go  to  eztremoB.  Formerlj  the  lev 
and  public  opinion  were  needlessly  severe ;  now  they  are  cniellj  lax,  and 
the  one  error  is  not  less  cruel  than  the  other.  STo  cause  for  self-^ratalaioD 
that  we  now  practise  a  sentimental  surgery.  It  is  a  matter  of  great  donbl 
who  is  the  more  unfeeling  officer  in  the  army  or  na?y,  be  he  who  orders 
700  lashes,  or  he  who  orders  none  at  all.  Instinct  under  the  costrol  ot 
reason  is  our  unerring  guide.  Obedience  to  the  four  instincts  of  hanger, 
thiret,  lust,  resentment  (the  common  attributes  of  the  whole  animti 
creation,)  is  virtuous,  degenerating  into  vice  only  when  alike  intemperate, 
plus  or  minus.  Respecting  injuries  to  ourselves  and  others,  we  hare 
been  erroneously  taught  to  allow,  or  manifest,  no  resentment  towards  the 
offender,  yet  whenever  so  righteous  an  instinct  has  beea  snpf^esBed 
nature  has  been  thwarted,  evil-doers  have  flourished,  and  the  world  has 
been  going  wrong.  It  is  the  instinct — the  virtuous  instmcl— of  the 
whole  world  to  impose  retributive  pain,  for  pain  inflicted  wilfally  and 
criminally,  just  as  it  is  the  instinct  of  the  whole  world,  to  slake  thiisl 
with  drink ;  no  need  of  drunkenness  therefore.*  Plain  abouid  be  the 
certain  punishment  for  all  violent  ofienoes  against  the  person,  and  ather 
pain  or  some  ignominious  punishment,  as  the  pillory,  is  due  to  malidoo 
ofienoes  against  property,  especially  on  living  animals.  In  the  Statit' 
Heal  Journal  is  a  useful  notice,  and  admirable  for  the  coumge  of  the 
writer,  Dr.-Mouat,  wherein  he  says,  '*  Flogging  is  found  to  be  veij 
reforming  of  the  prisoners  in  India,  and  ia  suocessftil  in  deariog  the 
gaols,"  of  India  (voK  xxz). 

"  As  thou  dost  so  ahalt  thou  be  dooe  by." 
"  It  18  right  to  deal  with  one's  enemy  aooording  ta  his  wiekedueaa.* 
"  Word  for  word  and  blow  for  blow»  aaye  (heathen)  Justice  when 
she  ca^leth  for  payment. " 

And  in  confirmation  of  all  this,  for  the  use  of  stripes  so  wholesome 
and  BO  reforming  we  have  not  merely  the  highe&t  authority,  by  precept, 
but  the  same  highest  Authority,  by  example.  We  are  told  of  One  who, 
and  not  for  the  extremest  of  offences  either,  ''  made  a  scourge  of  small 
cords." 


*  **  First  follow  nature,  and  yov  Jadii^ent  firame 
By  her  Jast  standard,** 

l9  ae  correct  a  rale  of  law  as  It  is  of  critlctem.  Art,  Jnrisiffadence,  norala  maft  att  dqiflt 
very  far  or  wide  from  the  canon  of  natare*«  Instincts,  or  the  aaTtge  ana  will  lanaia  mon  w> 
tQoua  than  the  ao-calied  reflned  and  clTlliaed  men. 


1869]  THB  IVOBBABX  07  HATEIUAL  FBOfiPXRXTT.  861 

APPENDIX. 

A.^-CO]fPA&ATIT>  QUAMTmU  OV  0BETAI9  ARTIOLIB  IICVOKTSD  ZXTO  TUUmTSX)  KlITODOlC 

AKD  ECTAINBD  FOE  BOMS  DBS. 

[OOO's  omittod  from  the  quantities]. 

ATeraffo  Awenm  locreaae  In  Increfue  In 

of  of  186&-a%  1865         1866, 

Alticlet  1860-59.  1860-63.  on  1850^     only.  onl860-6S.    1886. 

Percent.  Percent. 
Oxen,  bulUi   oowa^    and 

eaWes No.  82,  108,  26  288,            245      .••• 

SbeepaoJ  Iftmbe 192.  811,  62  9U«            876      .... 

Bacon  and  ham.  ••  •owt.  209,  729,  250  718,           242     ••.• 

Beef 126,  202,  60  244,              94      •••. 

Batter        828,  957,  196  1,084            285     .... 

Cbeeae 825,  665,  104  858,            162      .... 

Eggs.     ..   No.  109,881,  201,110,  88  864,            281      .    •• 

Fisb  of  foreign  taking,  «x- 

c]iisi?eof  eels.  ...cwt.  92,  860,  279  472,            411      •••• 

Hope 2,  117,  4,768  82,         8,818      .... 

Lard 188,  861,  155           187,  1  deerse 

Pork 154,  178,  19  222,              45      .... 

Potatoes 920,  767,  17  deorss  807,  12  deerse     .•.. 

Rice ••  889,  2,920,  248  1.942,            181      .... 

Wheat 15.292,  81,795,  108  20.986,              86  28,109 

Barley 2,946,  6,989,  117  7,818,            166    8,488 

Oats 8.047,  5.277,  78  7,711,            158     8,829 

Maise 6,5U5,  10,987,  68  7.087,               9  15,000 

Wheat  floor 4,282,  6,088,  41  8,888,  9  decree.     4,958 

Currants lbs.  407,  666,  61  799,              06       7^56 

Raisio ^    218,  281,  -         29  294^              85       801 

Pepper 4,512,  6,186,  15  4.718,               4      .... 

Ram gals.  2,894,  8,5r.O,  21  8,698,             28    4,127 

Brandy 1,881,  1,686,  16  deerse  2,664,              42    8,120 

Other  foreign  and  oolooial  89,  21 7,  456  870,            849       649 

Tobacco,  manofd.... lbs.  202,  818,  65  8'Z5,            808       879 

do    nomanofaetnred . .  27,771,  84,848,  25    -88,072,  87  89,621 

Wine gals.  6,854,  9,059,  48  11.994,              89  18,244 

Coalsforconsomptiooin)  1851  arge  1861  avge  1868  1864     1866  arge  ) 

metropolb tone.  J  8,427,817  4,587,e7l  4,479.896  4,727,801  5,240,747  f  ••*• 

Price 16s.  7(/.  19s.  18s.  2i.  20s.  IdL     20s.  4d:      ••.. 

lioix.— Qaantity  Increase  In  sixteen  years,  50  per  cent.,  p; ice  90  per  cent. 

B— uipoaT  AND  szpoaT  Taass  or  ukitid  kinoooic,  hoxs  oomsuxttioh,  and  katio 

TO    POFULAnON. 

[OOQ's  omitted  from  amonnts.] 

1861.       1881.        1869.         1868.         1864.          1866.  1866. 

£           £            £              £            £               £  £ 

Real  yaloe, imports.     ..110,485  217,485  225,717  248,919  274,952  271,136  298,892 

Exports 74,449  125.108  12S,992  146,602  160,449  165,862  188,828 

MHB^^i^^         ■o^BBM.^M         ^BM^a^BH.  ^m^t^m^^m        ^I^^^^^IM  ^m^t^m^^m         a^^^iM^^ 

Total  trade 184.984  842,588  849,709  896,621  485,401  486,997  487,220 

Proportion  of  total  trade 
topopulaUon 6.8        11  8        120       18.5         14. 7       14.7        16.2 

Quantitie*  of  tome  o/th€  Principal  Artieiet  of  food  retained/or  Some  Oonwmpiion 

Cocoa.lbs 2,978  8,408  8,622  8,712  8,862  8.8*6      4,607 

Cvffee,  lU 82.606  85,202  84.462  82,768  81.860  80,511     80,944 

Sugar,  cwt.  • 6,284  8.987  9,1 12  9,208  8,987  9.677     10,600 

Tea.  lbs 58,949  77.928  78,794  85,188  88,699  97,885  102,825 

Malt,  bush 40,887  46,650  48,689  49.078  61,797  69,746    64,445 

SpiriU,galfl.... 28,977  19,699  19,128  19,888  20,496  21,006    22,516 


862  THK  ZVOBKASX    07  IIATXBIAL  PR08FXK1ZZ.  [OckUlif 

Proportum  of  huA  ArtieUto  Populatum, 

Coeoa,lb8 0.1  0.1  0  1  0.1  0.1  O.l      0.1 

Coffse,  Ibt \.%  l.S  1.8  11  1.1  l.tt      l.O 

Sagar,cwt 0.8  0.3  0.8  0.8  0.8  0  8       0  4 

Tem  lbs 2.0  8.7  8.7  2.9  8  0  8.8       t.4 

Halt,  bush l.fi  1.6  1.6  1.7  1.8  1.7       1.8 

Spirita,gal8 09  O.^T  0.7  07  07  07       07 

Arerage  price  of  British  £  ■.  d.  £  8.  d.  £  a.  d.  £  a.  d.  £  a.  d.  £  f.  d,  £  i.  d. 

wheat  per  quarter...  0  88  6  0  65  4  0665  0  44  9  0408  0411004911 
Groea  reveooe  per  head 

ofpopaUtiou 2    20  290  280  280  2    70  270210 

C.-^AMOnKT  AMD  PKOFOETIOIf  TO  FOPULAnOV  OY  DBFOaiTS  IV  TSB    aATIXQS  BAIIS  Gi 

KU  UaiTBD    nVGDOM. 

[000*8  omitttd.]                      Amoant  Bateof^' 

ofdb-  pofltsper 

peslto.  iadlTlduL 

Tean.                                                                   Pornlatlon.            £  £  s.  i 

1861— Eofflukd  and  Walea ....•      17,928,           27,48(\  1  10  T 

^  — Scotland 2^89,              1,489,  0  10  4 

"  —Ireland • •••        6,662,             M69,  0  4  8 

^t^m^mmm^i^  ^v^^^^^^^BK  ^M^^^^B^^ 

ToUl  Uoited  Kingdom 27,869,  •       80,276,  1    2  8 

1861— Bngland  and  Walea 20,862,  86,866,  1U9 

••  -^)iland   8.062,  2,688,  0  U  T 

*<  —Ireland 6,799,  2,168,  0   1  5 

Total  United  Kingdom 28,928.  41,647.  1   8  9 

1862- 20,228,  86,797  1  U   » 

«  —Scotland 8,079,  2,677,  0175 

"  —Ireland 6,799,  2,088,  0   7   8 

Total  United  Kingdom 29,106,  40,662,  1    7  10 

1868— England  and  Walea 26,448,  89,184,  1  18   S 

•—Scotland 8.101,  2,977,  0  19  1 

"  —Ireland 6,799,  2,217,  0   7   9 

Total  United  Kingdom 29,846,  44,828,  110  9 

1864— England  and  Walea 20,668,  89,416,  1  18  9 

*"  -Scotland 8,118,  2.948,  0  18  11 

«  —Inland 6,799,  2,166.  0   7  » 

Total  United  Kingdom 29,680,  44,614,  1  10  0 

1866— England  and  Walea 20,881,  40,171,  1  18  6 

**  — ScotUnd 8,186.  8,0^6,  0  19  9 

'*  -Ireland 6,799,  2,062,  0    7  I 

Total  United  Kmgdom 29,816,  46,228,  1  10  4 

1866— SD«l80d  and  Walaa. 21,100,  89.797,  1  17  S 

"-Scotland 8.168,  2.916,  0  18  9 

•  —Ireland 6,799,  1,791,  0   6  2 

ToUl  United  Kingdom.... 80,052,  44.604,  1    9  7 

D.— Eznamnuan  oh  EnuoATiON,  Avn  Numbie  of  Omumxa  EDUOAXsn  x>  t0 

UvmD  KniGDOM. 

Bate  per 
Expenditure  AvetaxeNa  ATei^eeost  liead  of  FrotoPnp- 
frcm  ofthUdren     fbreadi   Expeii.oa  of  •▼ci«K* 

Tear*.  tUBonrcoB.      at  School.      Child,   popdlatioii.    8cko:«n> 

£  £     a.        a.   d. 

1864..England  and  Walea)        ^^n ^Att     5  228,66691    )    i  n  a     jl*'^* 

-   .  Sedtland f       ™*^^^     \    67,890t    f   ^  ^^        -  ^     ^     49 

*«    ..Ireland 208,660        268,726         ..  16         ..  8  S9 

*«   ..Total  ira  Kingdom..       926,898        716,171  16        ..8  Sd 


1869] 


TBI  ZNOBBAU  OT  UATXRIAL  PROSPIRITT. 


863 


1861..£ii^laiid  and  Wal«8 ) 
"  ..Scotland i 

m  •  JJTOIAOQ    •••••••••••• 


"  ..Total  ITd  KiDufdom.. 
1868.  .Eogland  and  Wales 

**      Sootiand 

**  Ireland 


**  ..ToUl  U'dKlDffdom.. 
1868.. England  and  Wales  > 

«  .. Scotland ) 

**  ..Ireland 

*'  . . ToUl  ITd  Kingdom. . 
1864..Eos<land  and  Wales ) 

**  ..Scotland y 

"  ..Ireland 

**  ..Total  TTdSongdom  . 
1866 . .  England  and  Walss  ) 

**  ..Scotland C 

'<  ..Ireland 


1,664,688 
806,648 

l,97l,t06 

1,646,129 

812,889 

1,967,618 

1,688,462 

826,162 

1,969,614 

1,662,866 

822,860 

1,986,716 

1,927,208 

826.770 


(  778,881*    ) 

^146.l04t    f 
284,726 


1.204.661 
J799.056*    ) 

1  14a.678t    J 
284.912 


1.283.641 
j889,764»    ) 

1  169,1 6lt    f 
296,986 


1,806,911 
(864,960»    I 
ll66.184t    f 
816,108 


1.820,242 
(901.760*    ) 
(  l&5,996f    i 
811,106 


"  .  .ToUl  n*d  Kingdom .  •     2,268,978      1.869,161 
1866  .  Eogland  and  Wales  )     ,  009  «i;i»     J  »!  1 .450» 
-  ..Scoaand f      1.998,667     ^  j,,^^^  | 


I 


16 
2 


1  6 


1 


26 

21 

1     1      '      20 


13 

16 

2 


1  4 
1  6 
1     1 


12 

12 

2 


1  4 
1  6 
1     1 


10 
18 


1  4 
1  6 
1     1 


10 

le 

1 


1  4 
1  7 
1     1 


19 
17 


1 
1 


6 
8 


{ 
i 
{ 
i 


24 
26 
21 
SO 


24 
24 
18 
20 


22 
24 
20 
18 


22 
28 
20 
19 


22 
28 
18 


E.-^PAUPiaiBM. 

England  and  Waiet, 

Number  of  Per  cent  to 
Population.        paaptrs.   popnUtlon. 


Cost 
& 
6,086,166 
6,77i\477 
6,627,086 
6,428.288 
6,264,961 
6.439.617 
6,969,841 


1861  (aTerage  8  years).  17,966,000  966,227  6  8 

1861  (ayenge  8  yeaia).  20,044,000  881,899  4  4 

1863 20,456,000  1,079,881  6  8 

1864       20,668,000  1,014,978  4  9 

1866... 20,881,000  961.899  4*6 

1666 •«  21,100,0  0  916,162  4*8 

1867 21,820,000  681,000  4*4 

The  Meirap^U 

1861^  (arerage  8  years)    

1860  (ayerage  8  years).     2,802,000  91,693  8*26        888,649 

1868 2,802,000  99.668  8*66         8't8,198 

1864.. 2,802,000  99.097  8*60         876,990 

1865 2,802,00f)  99,981  8  66         906,639 

1866 2,602,000  104.499  8  60         976,268 

U67 ....  2,802,000  122,464  4  87        1,176,868 


Cost  per  indlT. 
of  popnlation. 
B.   d. 

6  8 

6  8 

6  4i 

6  2i 

6  .. 

6  1^ 

6  6i 


•  a  • 


F'— auvBSB  OP  oamnrAir  offbndie8  os  ocaTAnr  clabsib  coNyioran  in 

WAUCS. 

I&creaseC-^-) 

or         Sentea  Decrease 
Total   DecreA8e(~)   ced     per  oent.  Trans- 

oonTlct-   pfirosnt.       to        in  40     Bxecn*  p'r- 


Offences. 
Shootiog  at,  stabbing, 

wonoding,  Ac. : 

1817 

1827 

1887 

1847... 

1857 


ed.     in  40  years,  death,    years.       ted   tation' 


6  Hi 
6    2i 
f     8 
6     6} 
6  11 
8    4* 

INOLAND  AND 

Imprli* 

onmeat 

Penal  abore  1 

servi-yeario6 

tade.  moDths. 


1 


26 
85 

118 
208  j 


+700  ^ 


261 

86 

86 

4 

9 


66 


12 

•  a  •  • 

6 

.  .  .  . 

. . 

2 

. . 

42 

« . 

U 

68 


8 
72 

180 


*  iDclndlng  Roman  Catholic  School  for  Great  Britain, 
t  BsclasiTe  of  Roman  Catholics. 

4  No  retara  of  paaperis^  in  these  years  for  the  metropolis  alone ;  the  statUtios  were  then 
glTen  in  the  orduiary  coonty  lium. 


964 

Bobbery: 
1817, 
1827, 


THE  nrORXASX   OF  liATIRlAL  PBOBPXRirr. 


1887. .• 
1847... 
1857  .. 


<  •  •  •  • 


Burglary: 

1817 

1827 

18*7 

1847 

1867 

Hotuebreaking  : 

1817 

1827 

1837 

1847.... 
1867 


Larceny  io  a  dwell- 
ing house : 

1817 

1827 

1887 

1847 

1867 


Simple  larceny  : 

817 

1827 

1887 

1847 , 

1867* 


164) 
201 

184 
26 
886 

874 
868 
282 
846 

4tt4 

162^ 
240 
408   * 
606 
668, 


y    +l« 


148 
228 
169 
172 
246 


6,420^ 
8,868 

10,409  y 

12.778 
6,788  J 


Forgery,  and  utter- 
ing forged  iostru- 
menta; 

1817 

1827^ 

1887   

>847 

1867 


+278  - 


162 
240 


r  148 

228 


-  +78.0  i 


—98 


621 

46 

42  y     +196  " 
121 
184 


94 


98 


f 

I 


19 

17 

■  • 

■  a 
.  . 

18 
10 

■  • 


■  • 


.  a 
■  • 


I 

4 


•  % 


a  . 


•  •  • 


144 

76 


1,800 

1,897 

1,611 

991 

•  •• 


62 

18 

.... 

46 

4 

a  •  .  . 

•           •« 

•  ■ 

81 

•           •  < 

•  • 

40 

.           •  1 

•  • 

6 

[Octckr, 


• • ••  •• 

a  a  •  •  a  • 

18  .a 

186 

28  161 


294 
172 
10    171 


•  •  •  •      •< 


a  •  •  •• 


69 


to 

187 


a  •  ••  •»  ..•• 

•  aa.  aa  ••*• 

8  1 

227  ..  IM 

14  188  m 


•  •a* 

109 

m 

381 


...a 

•  •  .. 

IS 

180 


..  4,982 

a.  6^91 

. .  8.4«5 

..  11^9 

788  4^4 


80 


•  •«« 

•  • 

11 
81 
9» 


Ga— INDIOTABLC  OrFCNCBB  OOMMITRD  IH  CNOLAND  AND  WALI8,  SO  VAE  A9  KVOWIT  TQ 
TBE  POLIOB  ;  ALSO  TBI  NUIIBBB  09  GABia  BUMMABILT  DIgPeaBD  OF  UlPtt  n> 
BKAD  or  **  OaONKBNNKSe,"  AND  TBI   MUMBBB  AMD  COST  OF  THB  FOUOL 


1857. 
1.  No.  ofindictableofTenoet  known.      67,*^3 
2     **        persons  apprehvnded..,..       8t,e31 
8.  Class  ot  known  offences— 
▲.  Offences  a^ainBt  the  person..  8,787 

B.  *'  property  wlih 

Tlolence 6,471 

o.  Offences  aga  nst  property  with* 

ont  violence 48,897 

D.  Maiictoas  offences  aeainst  pro- 
perty   406 

B.  Forgery  and  offences  against  the 

cnr^'ncy .  ....         2,889 

v  Oiheriffenees 1,873 


ATeraffe 

186<M(i. 

61,480 

27,0a6 

2,408 

4,698 

40,861 

620 

1,78T 
961 


1968. 

63,911 

80.410 

8,966 

6,488 

89,801 


1,509 
1,880 


1864 

61.068 

26,7M 

6,088 

88,431 

7T4 

1,894 
1,886 


1f6B. 

88,900 

99,049 

8,199 

6.160 

40.89 


t410 

laMH 


I8« 

GQ,M 

9;iit 

9,« 

5.084 

99.ni 

46 


^  Sns.mazy  Jurisdiction  Act  paiaed  In  18S6. 


18691 


THX  IK0BBA8B   OF  MATXRIAXi  PROSPBRirT. 


S65 


4.  Special  offenoes  of  Tiotence  ifctnit  the  penon.  Included  in  Ofatss  A— 

LMnrder 

n.  Maaslanghter  and  mart  erona 

assault 

in.  Aesaiilta  and  Inflicting  bodUy 

harm 

rv.  Common  assanlta 

y.  Aaaanlto  on  peace  offloers..... 

YI  1tap««,  and  attempts  at 

6.  UronkeDneas,  and  dmnk  and  dis- 
ord  rij,  sammarlly  detsnnlned ... 

Ratio  ti>  popolatlon 

Nnmherofpolico 

Proportion  to  popolatlon  of  1,000. .. 


09 

799 

889 
488 
869 
471 


110 

817 

198 
166 
196 
497 


121 

998 

S91 
168 
811 
653 


184 

1,088 

806 
314 
349 
606 


185 
1,103 

395 
SS9 
398 
685 


181 

983 

972 
207 
164 
679 


75,889 

88,488 

94,746 

100,067 

■  •  •  * 

4.7 

4.6 

4.8 

19,187 

81,446 

33,63) 

83.849 

1.0 

1.1 

l.l 

1.1 

£ 

£ 

£ 

£ 

105,810  101,868 

6.0  4.9 
88,350  S8>728 

1.1  1.1 
£  £ 


CostofthopoUce 1,266,680  1,669,109  1,668,265  l,700,3ia  1,748,758  1,837,106 

aora.— This  table  inolndes  the  metropolitan  district. 

H. — IHDZOrABLI  OFFIMOBS  OOllllXTTXD  IN  TBI    MBTROPOUS  SO  FAB  AS   KNOWN  TO  TBS 
POUCB:    ALSO  THB  NDMBBR  OW  OASIS  8UM1CARILT   DISPOSSD  OF  DMDSE  TBS  HSAO  OF 


**  DBnNKXNNBSS,"  AND  TBS  NDMBBS   AND   COST  OF  TBB  POUOI. 


▲Terage, 
1860-68. 

1.  Knmher  of  indictable  offences  known 18.331 

3.  Number  of  persons  apprehended 4,817 

8.  Class  of  ttnown  offences — 

A.  Offences  against  the  person 857 

B.  Offences  against  property  with  Tinlence 479 


1868. 

14.044 
5,776 

573 

609 


1864.     1865.     1866. 


18,684 
.  6,Q10 

668 

685 


c.  Offence*  against  property  wit  boat  violence. 10,604   11,703    11,196 


i>.  Mallcioas  offences  again  t  property 88         60 

B.  Foigery  and  offences  agiine  t  the  carrenpy 688       628 

w  4  ither  offences 381        468 

4.  Special  ofF.ncea  of  Tiolence  agaiust  the  person,  included  in  Class  A— 


LMorder  ~. 8 

n.  Manslaughter  an*!  morderoas  assault 131 

nt.  Aseaolts  and  lufllcting  bodily  harm 5 

IT.  Common  asaaolts 68 

T.  Assanlis  on  peace  offlcers    48 

Ti.  Rapes,  and  attempts  at 44 

5.  Orankeoneat ,  and  drank  and  disorderly,  summarily 

determined 19,781 

Knmher  of  poUce  (metropolitan        *« .     7,434 

Proportion  to  population  of  1,000 

£ 


11 
903 
8 
71 
73 
64 


48 
663 
486 

14 

189 

8 

146 

79 

85 


18,859  14,767 

6,747  5,838 

649  6*0 

646  667 

11,677  13,660 

88  48 

444  411 

613  461 


8 

200 

5 

160 

87 

61 


0 

186 

85 

166 

69 

76 


19,099  19,940 

7,961  8,066 

2*9  3'9 

£  £ 


31,105    20,789 
8.156     6,277 
3-9         80 


£  £ 

Costof  thepoUce 666,679  611,639  626,289  669,765  685,875 

J. — ^irUMBBB   OP  PBBSONS  OOMMITrXD    FOB    TRIAL  IN   BNOLAMD  AND   WALBS. 

Batfo 
Population,    per  1,000 
'17.857,00  r^ 

n,666,0n0 

Ayerage      Ayerage        17,778,000 

of  of         <  17,e88,00«) 

7  years        7  yea's        18.  98,000 

28,128       .17,988,000     18  4('4,000 

1 18,616,000  J 

18,829,000     18,829.000 

f  19,042.000 1 

Ayernge      Average        19,267.000 

of  of  19,471.000 

7  years        7  years     -{  19,687,000  - 

18,866         19,688.000     19,903,000 

\  2,120,00 

1^20,886,000 

Ayerage      Ayerage      f  20,554.000' 

of  of         J  20,77i,000  . 

4  years        4  years     1  20,991,00  <  \ 

19,697        50,882,000  [21,210,C0  J 


1848 Ko.  80,849 

1849 27,816 

1860 26.818 

1861 27,960 

1852 27.610 

1858 27,067 

18S4 ..  29.869 

1866» 26,972 

1856 19.487 

1857 29,269 

1868 17,856 

1859 16,674 

I860 15.999 

1861 18,826 

1862 20,0''l 

1868 20,818 

1864 19,606 

1865 19.614 

1866 18,849 


-     1*6 


1-4 


0-9 


0-9 


*  Tear  cf  the  Criminal  Justices  Act. 


S66  TBS   OULTIVATIOK   ARB  PBOIHTOTIOK  07  COTTOIT.        [Octoief, 

K. — FZftIB  AS  KNOWX  TO  TKS  FOUOI  IH  lOMDOH,  LTnBVOOL,  KAMBHtlB  !»  BUHO. 

Reported  to  I  iveipool, 

the  lietropoUtaa                yetr  ending  Kaa- 

Fire  Brigade.   London.   »th  S^pt  chctter.  OiliUs. 

18i^7 1,116  66)  202  194  U 

1868. 1,114  608  189  IH  4t 

1869 1.084  66t  185  tOi  48 

186).      1,066  668  241  ttZ  SS 

186! 1,188  647  S68  261  63 

1862 1.808  660  249  206  64 

1868 1,404  742  244  228  49 

1864 1,487  748  206  276  4S 

1866 1,602  (06 

1866 •••••••••••••••••••••     1,888  661  •••■  ••••  •••• 

Note— Arerage  of  Unt  three  Teire  6761,  and  of  the  laat  three  years  TSS.  In  Londaa. 

L. — TABLI  SHOFIMO  TEAT  FIEI8  RAYS  IffOEXABSD  19  lOHDOir  IK  AH    tnrSVB  KAZR)  IP 

TBS  nrORBASX  OF  POrCLATZOH  AHD  OF  HOUBIB. 

In  1846  there  was  1  fire  to  every  2,990  of  popalation,  and  1   to  CTwy  896hooM 

••  1850  **  2.678  *  •*  847  « 

••1866  ••  2,686  •*  «  88J  •* 

•*  1860  ••  2,618  «  «  886  • 

••1861  "  2.870  ••  *  80S  • 

-  1862  •  2.188  "  -  280  « 

••  1863  ••  2»064  •*  ••  2tt  ■ 

••  1864  *  1,980  •*  -  266  •• 

••  1866  ••  1,900  ••  ••  260  ■ 

^ote.— Increase  ttom  1816  to  1886,  nesi)y  60  per  cent 


TABLS  SHOWIKQ  THE  INORIASB  IH  THB  HDMBBB    OF    FIBB8    BBOOBDID    AS  OF    "0171 

OIOCS.   DOUBTFUL  OE  UMAOOOUHTXD  FOE"  OUGHT. 

In  1862  there  were  928  fires,  of  which  818  or  84|  per  cent  were  "snspicioiis,"  Ac 
•*  1863         ••  9i  0  ••  824  •'    88  •«  •" 

«  1862         «        1.808  "  607  ••    88  ••  •• 

••  1868  •        1,401  **  601  ••    86  ■  • 

"  1865  ••        1,602  "  618  "40^  «•  " 

••  1866  ••        1,888  "  700  •    62^  «  " 

Note—  Ivertge  of  llrst  three  years  8S ;  'a< ter  three  years  48,  or  ss  6  is  to  7 1-6. 


'  Mtf<W%#«^N^«#« 


THE  CDLTITiTION  AND  PRODDCTION  OF  COTTON. 

In  view  of  the  condition  of  labor  in  the  South,  both  present  ud 
prospective,  it  is  evident  that,  if  the  supply  of  cotton  from  this  countxr 
is  to  be  materially  increased  within  the  next  few  years,  this  resolt  most 
be  accomplished  through  greater  carefulness  and  economy  In  the  manage- 
ment of  labor  and  the  cultivation  of  the  land.  In  a  former  paper  we  dis- 
cussed the  labor  question  ;  but  the  iuiportance  of  thoroughly  and  properlj 
preparing  the  soil  is  no  less  evident. 

Before  the  war  the  upland  cotton  fields  were  year  after  year  **  crop- 
ped" under  a  system  of  superficial  cultivation,  and  it  is  only  beesoseof 
the  slow  exhaustive  nature  of  the  coUon  plant  and  the  great  natural 
fertility  of  the  cotton  belt,  that  these  lands  were  not  completely  exhaostod 


1869]  THS  OULTirATXOK  AND  PROD aOflOlT  07   OOTTOK.  36? 

loDg  asfo.    Fortnoately,  however,  the  cotton  fibre,  which  should  alone  be 
removed  from  the  plantation  on  which  it  grows,  absorbs  but  six  and  one- 
half  pounds  pel  acre  of  the  mineral  properties  of  the  soil,  calculating  the 
yield  at  one  bale  to  the  acre.    In  comparison  with  wheat,  which  absorbs 
17'65  pounds  to  the  acre,  potatoes,  which   absorb  163    pounds,  or  beets, 
which  require  458  pounds  of  the  most  valuable  properties  of  the  soil, 
it  will  be  seen   that  the  amount  taken  up  bj  the  cotton   fibre  is  small ; 
but  even  with  this  slow  exhaustion  of  these  necessary  mineral  i  lements 
the  time  has  eome  when  the  use  of  fertilizers   to  restore  the   land  to  its 
origioai  fertility  is  imperatively  required.    Even  in  the  rich  bottom  lands 
where  as  much  as  two  or  two  and  one-ha)f  bales  have   been  raised  to 
the  acre,  and  with  little  or  no  cultivation,  the  custotn  of  forever  taking 
away  from  and  never  returning  anything  to  the   soil,  must  ultimately 
impoverish  it.     These   facts   are  becoming  more  and   more  evident  to 
planters  throughout  the  South,  and  during   the  past  year  fertilizers  have 
been  more  extensively  used   than   ever  before.      On   account    of   the 
peculiar  properties  of  some  of  these   manures,  however,  it   is  said   that, 
during  the  excessively  dry   summer  we  have   had,  injury  has  resulted 
rather  than  benefit     But  where  this   has  happened,  we  think  it  may  be 
traced  to   the  properties  of  the   fertilizer,  and  is   certainly  no  argument 
against  the  Bcientffio  cultivation  of  the  soil.    To  understand   then  what 
are  the   best    fertilizers,  requires   a  careful  study  of  the   nature   of  the 
cotton  plant  and  of  the  manures  generally  in  use   obtainable  at  a  price 
which  will  enable  the  planter  to  apply  them  freely  to  his  land. 

The  requirements  of  cotton  may,  of  course,  be  correctly  determined  by 
ascertaining  what  are  its  constituent   parts.    An   analysis  of  the  fibre 
shows  that  100  pounds  of  cotton  lint  concain  one  and  three-quarter  pounds 
of  mineral  matter  in  the  following  proportions:  Potash,  41.8  per  cent 
Lime,  19.8  ;  Magnesia,  11.2  ;  Chlorine,  7.8 ;  Phosphoric  Acid,  6.4 ;  Soda  * 
6.1 ;  Sulphurio  Acid,  4.2 ;  Oxide  of  Iron,  2.4  ;  Silica,  .3.    It  is  evident* 
therefore,  that  manure,  to  be  thoroughly  adapted  to  cotton,  must  contain 
these  properties  in  a  soluble  condition.    The  most  important  are  potash 
lime,  magnesia,  phosphoric  and  sulphuric  acids,  all  of  which  are  essential, 
and,  when  lacking,  must  be  supplied  to  the  soil.     These  necessary  ingre- 
dients may  be  found  most  readily  in  the  following  available  manures : 
cotton  seed,  natural  phosphates,  guano,  super-phosphate,  bone  dust,  ashes, 
salt,  stable  manure,  lime,  and  land  plaster.     By  far  the  most  valuable 
of  these  is  cotton  seed,  which  contains  the  same  mineral  properties  as  the 
lint,  and  in  much  larger  quantities.    As  there  are  800  pounds  of  seed  to 
100  of  the  lint,  the  mineral  matter  abstracted  by  the  plant  can  be  returned 
to  it  through   the  seed,  which  contains  the  bulk  of  that  taken  up  during 
the  growth.    The  usual  mode  of  preparing  the  seed  for  manure  is  to  put 


368  THB  OULTIYATZOK   AHB  PRODVCnOlT  tF  COROV.       [Oetobr, 

it  in  a  water- tight  basin  prepared  in  the  ground  and  leave  it  to  rot m  the 
weather.  After  it  is  thoroughly  decomposed  it  can  be  used  for  gnio, 
corn,  or  cotton,  and  if  mixed  with  bone  dust,  gjpsam,  or  any  good 
mineral  fertilizer,  it  becomes  very  rich.  This  manure  is  in  genersl  use 
through  the  uplands,  but  the  modes  of  preparing  it  are  often  so  wsstefoi 
and  injurious  as  to  deprive  the  planter  of  much  of  the  profit  and  tdno- 
tage  that  would  otherwise  result.  Experience  has  prored,  however,  thtt 
cotton  seed,  mixed  with  bone  dust,  stable  manure,  muck,  or  g}p8Qffl, 
will  greatly  improve  the  soil  and  increase  the  yield  of  cotton.  It  is  csseo- 
tial,  also,  that  the  planters  take  better  care  of  stable  manure,  which  ii 
valuable  on  any  kind  of  soil  and  for  any  kind  of  crop.  The  banjsrd 
is  a  thing  hitherto  almost  unknown  in  the  South,  and  the  rich  bedso' 
manure  which  the  Northern  farmer  accumulates  from  year  to  year,  irs 
seldom  or  never  seen  on  the  Southern  plantations.  It  is  also  etieotul 
that  the  black  muck  from  the  swamps  shall  be  more  generally  employed. 
The  character  of  the  soil  of  the  cotton  belt  is,  in  great  part,  light  sod 
sandy,  end,  with  but  few  exceptions,  needs  stiffening*  Many  seetioss 
abound  in  swamps,  where  the  richest  kind  of  vegetable  mould  can  be 
procured  in  unlimited  quantities,  and  a  few  enterprising  planters  sis 
already  beginning  to  avail  themselves  of  this  cheap  fertilixer  with  profit 
to  themselves  and  advantage  to  the  soil  under  cultivation. 

Among  the  available  mineral  fertilizers,  the  cheapest  and,  in  some  re- 
spects, the  best  are  the  natural  phosphates  from  the  Ashley,  Cooper  tad 
Wando  river  regions  of  South  Carolina.  The  Ashley  beds,  whidi  were 
the  first  discovered,  are  the  most  extensive  and  valuable.  These  d^HMiti 
extend  over  a  surface  of  several  miles  square ;  the  strata  generally  lying 
within  two  feet  of  the  surface  in  a  light  soil,  and  being  quite  aoeeiable 
from  their  proximity  to  the  Ashley  river  and  the  Charleston  market  The 
ftnalysis  of  these  phosphates  show  them  to  contain  lime,  sulpharic  and 
phosphoric  acids,  but  no  alkali,  which  must  be  supplied  when  used  on  lead 
not  already  containing  it  in  sufficient  quantities.  In  this  respect  it  resem- 
bles guano,  and  should,  therefore,  be  mixed  with  other  fertiliaen  sopply- 
ing  silica  and  potash,  which  are  rapidly  exhausted  from  the  soil  whea 
guano  is  used  alone.  The  alkali  and  chlorine  may  be  imparted  to  the 
soil  by  the  use  of  common  salt  and  ashes,  thus  making  a  fertaliaer  as  nearly 
perfect  as  possible ;  but  owing  to  the  present  high  price  of  salt,  it  is  io 
most  instances  placed  beyond  the  reach  of  the  planter.  It  is  possiUe  that 
the  lately  discovered  "  potash-salts"  of  Germany  will  soon  be  iotrodoced 
into  this  country,  and  as  we  suppose  it  is  not  covered  by  the  tariff  it 
may  be  obtained  at  a  price  which  will  place  them  within  reach  of  erery 
Southern  planter. 

In  treating  of  the  subject  of  manures  and  fertUizersi  however,  it  it 


% 


'«  ouLTiVAnosr  and  produotiov  of  coTTOir.  369 


^. 


«^  ^ind  the  diffioulties  in  the  way  of  generally  distri- 

°%.      "^^  '•nd  other  commercial  fertilizers  throughout  the 

^^  ^^      ^^bv  '"  "^  comparatively  few  in  number,  and  on 

c  ^^  .'^^        '^t^  rates  are  high  and  facilities  for  freight 

f    ♦^  "^^  '*■,/   ^'"  .,  '^n  such  manure  as  they  can 


^^  '^X  ^  '^S  ^'^'^  ^^  ^^  ^*^  ^^  '*  necessary  that 

%;  ^     •^/i    "^'y        ^  'ands  are  distant  from  railroads 


•i 

* 


^v  ^-i-  ^'»-  '^     '  •*  .varaps.    Both  of  these  have 

/>,    ^4,    ^^/./   '•        •     *•  ected,  although  they  should   be 

'„  '^<\   ''^      '.*•.•  eminent  chemist,  of  extensive  expe- 

'^   ^/     '«       '  vOn  States,  has  given  it  as  his  opinion 

'V    ^  0^    ♦'  «mp8,  which  can  be  procured  anywhere  in 

'• ,    '»^  '<"'  I  ting  it  a  short  distance,  possesses  many  of  the 

J  improve  the  character  and  stimulate  the  fertility 
ii  soil.    With  a  proper  system  of  drainage,  tbousansd 
ich  mould  might  be  made  available  for  fertilizing  pur- 
ine old  system  of  labor  existing  before  the  war,  the  method  of 
'ion  adopted  was,  as  a  general  rule,  wasteful  and  ineffective.    In  but 
instances  did  the  proprietors  of  the  soil  know  or  care  much  about  the 
j)ractical  management  of  the  plantation,  preferring  to  leave  it  to  irrespon- 
8ible  overseers,  whose  interest  it  was  to  get  the  largest  possible  crops  with 
the  least  trouble  to  themselves.     As  a  consequence,  but  few  improvements 
^«re  made  in  farming  implements  or  machinery,  and  everything  was  of  the 
nioet  primitive  and  inferior  description.    A  wretched  system  of  surface 
'culture  was  followed  year  after  year,  and  the  land,  rapidly  exhausted,  was 
abandoned  for  new  soil  as  soon  as  it  ceased  to  yield  profitably  ;  Manuring 
was  seldom  resorted  to  ;  subsoil  plows  were  unknown ;  and  little  eflfort  was 
ttiade  to  improve  the  quality  of  the  lint  by  experiments  with  seed  imported 
from  foreign  countries  or  procured  from  other  sections  of  the  South,  as  has 
been  done  with  wheat  and  other  cereals  in  the  Northern  States.    Under 
^be  present  condition  of  affairs,  however,  the  necessity  of  economizing 
ialior  has  compelled  the  planters  to  farm  on  very  different  principles,  and 
to  make  the  yield  as  large  as  possible  from  the  limited  acreage  now  under 
culiivation.    Experience  has  shown  that  cotton,  like  all  other  products  of 
u^e  soil,  thrives  best  when  cultivated  most  carefully.    All  lands  in  which 
It  18  planted  must  be  sub-soiled  to  the  depth  of  eighteen  inches,  at  least, 
^y  furrow  planting  and  careful  cultivation  it  has  been  found  that  the  fruit 
OQ  the  plant  can  be  largely  increased.   In  a  word,  experience  has  shown  that 
the  size  of  the  cotton  plant  and  the  number  of  pods  it  holds  are  in  direct  pro- 
portion to  the  richness  of  the  soil  and  the  care  with  which  it  is  cultivated, 
Ai^d  hence  with  our  limited  labor  supply  the  extent  of  our  crop  for  the  next 
'^  years  must  depend  very  much  upon  careful  cultivation. 


B70  KORTB  CAROUITA  BONDS.  [Oetohtr^ 

IVORTfl  CAROUVA  BOVDS. 

The  following  informatioD  aod  opinions  are  of  mnch  intereat  upon  ilw  tnbjactof  tlM 
North  Carolina  debt.     A  dp»patch  from  Raleigh  statea  : 

*' The  public  TresBurer  givea  notice  that  the  inter  eat  on  (he  bonda  iBMied  in  lid 
of  the  new  railroudB,  due  April  1,  will  be  paid  on  the  presentation  of  the  oonponii 
the  1'rea8ureP«  c  ffice,  or  the  Raleign  If  ational  tiank.    He  also  girea  ootiee  that  dmikr 
futuie  inttfrest  will  be  paid  ut  either  of  the  same  pUoee." 
In  regard  to  this  the  Mew  York  CommereieU  Auvertiter  remarks : 
A  North  C  a^oUna  Senator  communicates  the  following  information  relatire  to  the 
bonds  of  If orth  Garulina  known  as  '*the  Special  lax  fionds *  respecting  wtucb  tbm 
it  soroe  roystifi  ati>  n  in  the  public  m*nd  : 
Sect  on  6,  article  5,  ConHtitulion  State  rf  North  Gjimltna,  ratified  Aprfl,  1868,aaji: 
Until  the  bones  of  the  ^tatc  ehall  be  at  par,  th^  General  Assembly  shall  Lave  no 
power  to  contract  any  new   <  ebt  vr  pecuniary  ob  igation   in   behalf  ol  tbe  State, 
except   to   supply   a  casual  deficit,  or  lor  sopprestt:i>g  an  inYasioo  or  insiirrMtion, 
'unless  ft  *Ml  in  Hie  wunt  bill  lay  a  tpecial  turn  to  pay  the  intierttt  eMmaUy,  ifid 
the  Otntrul  Ask-euibiy  shall  have  no  power  to  give  i>r  lend  the  ctedit  of  the  &tate  io 
aid  of  any  p^rscn,  af^rociaiioo,  or  corporation,  except  to  aid  the  cooDletion  of  vaA 
railroBfie  as  may  be  ui  finished  at  the  time  of  the  atU  ption  of  thia  Oonatitntioo." 

At  tie  la^t s€B(iion  of  tbe  Le^tislatui  e,  appropriationa  and  amendments  to  the  chaitcn 
of  the  fo.lowing  railroads  were  made,  to  wit ; 

Wiln  ington,  GharlntU,  and  Rutherford  Railroad,  Western  (N.  C)  Railroad,  West, 
em  Kaitn.  d,  and  to  several  others ;  but  the  above  are  (he  only  oni-a  declared  by  tke 
Supreme  Goort  of  North  Carolina,  in  July  last,  to  b«;  in  accordance  with  the  Coorti- 
tutioo.  The  appnpriations,  iu  ah  amounting  to  aouie  |10,00(>,000,  were,  with  ike 
amendments  to  the  different  charters  submit^s  i  to  a  general  met.ttng  of  ibe  stockbold* 
era  of  tbe  several  roods,  and  ly  tbeiu  aciej^ted,  hence  becoming  a  part  and  parcel  of 
their  charters,  and  a  vested  right  wh  ch  no  future  Legislature  can  repeaL 

Jn  encb  of  tbe  bills  making  these  appropriations  *'«  apedal  tax  to  pay  the  intemt 
annually"  was  levied,  which  levy  is  ^ood  acd  binding  as  a  first  lein  on  all  the  real 
and  perat  nal  property  of  the  State  until  the  eapedal  tax"  U  nda  are  paid. 

1  he  tax  levy  to  pay  the  intert  st  on  such  bonos  having  been  made  ooder  the  abom 
eectiou  of  the  Gonstitutioo,  has  no  need  of  further  legislation  to  pay  ita  mterest,aod 
cannot  under  the  Gonstitutioo,  be  diverted  for  any  other  purpose,  while  the  paymeati 
of  interest  on  the  **old  and  n«w'*  bonds  are  dep<  ndent  on  the  annual  tax  levy  of  cadi 
Legislature. 

'ihe  above  ia  briefly  but  correctly  the  reaaon  why  thoae  bonds  are  called  Ike 
"  special  tax  bonds.** 

The  JHfftes  (financial  artile)  aays,  in  reference  to  the  same  matter: 
A  Rale>i.h  announcement  by  telegraph  is  to  the  effsct  that  the  April  inferest  wifl 
be  paid  in  tliat  city  on  such  of  these  **  Special  Tax"  issues  as  may  be  in  the  haodf  of 
the  public — the  amount  said  to  be  two  or  three  mibiona  out  of  $(6,240,0«'0  desired 
to  be  maiked  m  New  York,  if  practicable,  to  build  certain  new  railways,  <n  prefereoet 
of  $18,049,946  including  back  interest,  ht*retofore  issued   for  the  old  railways  and 
other  State  purposes.    Theae  latter  are  acknowledged  to  hold  the  aa   e  rank  as  a 
charge  upon  the  general  revenues  and  public  faith  of  tbe  State.    The  pretest  of 
special  tax  aecuiity  on  the  new   bonda  rests  upon  the  provitioo  of  the  amended 
Goostitution  requiring  additional  taxes  to  be  levied  by  the  Letfit^latnre   whenev.r  tbe 
State  debt  is  ioci  eased.     But  we  discover  nothing  more  forcible  in  the  new  tkao 
in  the  old  fundH  mental  law  for  the  preservation  of  the  entire  public  laith.     And.  if 
the  State  holds  $11 ,241, COO  stock  and  mortgage  in  the  old  railways  (most  of  tbetn 
anti  war),  which  cannot  be  made  available  with  the  help  of  the  ordinary  state 
revenues  to  pay  the  interest  on  |^18,000,iOO — even  after  the  arrearages  of  iot^est  up 
to  1866  had  been  funded  prumise  of  a  general  resumption  of  paymeota,  and  tbe  fiiod- 
ing  bonds,  to  the  amount  of  $2, 1 89,900,  now  known  as  "New  North  O^rolinss.' 
sold  in  the  New  York  market  at  65(^70  oenta  on  tbe  doUar^it  is  eesrcely  to  be 
credited  that  new  railways,  som«  of  them  barely  commenced,  can  be  impliatly  relied 
upon  to  help  the  State  ray  the  interest  on  f  16,S40.000 — ^muth  longer,  at  least,  than 
it  will  take  to  market  the  whole  amount.     We  make  theae  aoggeatioos  by  way  of 
caution  to  the  public  against  buying  th«t  bonds  open  tbe  mere  announcement  of  one 
or  two  Lcstallments  of  interest  to  be  paid  on  a  few  milliona  already  in  second  hsoda 
as  sold  for  c^sh  or  exchanged  for  railroad  iron,  hot  id  oo  hoetalitj  to  North  Oveloa 
credit  properly  admnbteted. 


1869]  tifioR  In  mt  Bo&tit.  &71 

LABOR  IN  THE  80UTI. 

Witbin  the  pa&t  three  years  the  question  of  labor  in  the  cotton  pro>* 
duciDg  States  of  the  South  has  become  one  of  great  interest  and  import* 
SDce  to  the  entire  country,  tn  a  !e^  localities  the  supply  is  compara* 
lively  abiitdant,  and  employers  aire  eiiabled  to  select  good  workmen  and 
reject  those  that  are  incotnpetent  or  Untractable ;  but  throughout  the 
greater  part  of  the  cotton  belt  it  is  becoming  raofe  and  more  difficult  each 
year  to  obtain  a  sufficient  force  of  field  hands  to  work  the  comparatively 
small  proportion  of  land  tiow  Under  cultivation.  Instead  of  increasing  the 
acreage  devoted  to  (sotloo,  as  has  been  ufged  by  Northern  journais,  the 
planters  declare  themselves  unable  to  properly  cultivate  and  gather  even 
the  crops  they  bave  planted.  This  is  a  serious  condition  of  afifairs, 
and  otie  which  it  is  the  inteteBt  of  the  whole  country  to  seek  to  relieve. 
Most  planters,  however,  are  looking  to  immigration  as  the  solution  of 
the  difficulty,  and  theDhinaman  is  now  supposed  to  be  the  "^^  coming  man  ^ 
who  is  to  solve  the  problem  and  make  the  whole  South  blossom.  But 
it  should  be  remembered  that  for  years  the  main  reliance  of  the  South 
must  be  upon  the  fr^edmen,  and  the  great  question  is,  how  can  their  labor 
be  made  most  effective ! 

We  admit  that  since  the  cloffe  of  the  war  idleness,  and  the  vicious 
habits  of  life  engendered  by  it,  have  demoralized  a  large  proportion  of 
the  black  population  atid  greatly  impaired  their  usefulness  as  laborers ; 
thousandft  have  left  the  Agricultural  districts  and  flocked  to  the  cities  and 
towns,  where  they  remain  engaged  in  whatever  occupation  offers  them 
employment;  many  more  settle  in  the  woods,  or  on  small  patches  of  land, 
from  which  they  raise  only  enough  to  afford  them  a  bare  subsistence. 
Those  remaining  in  the  cotton  fields  are  frequently  unreliable,  and 
attempts  to  control  them  are  followed  by  the  abandonment  of  their  work 
and  the  violation  of  whatever  contract  they  may  have  ma<fe  with  their 
employer.  In  addition  to  this,  the  women  and  children  have  abandoned 
6eld  work,  and  cannot  be  induced  to  return  to  it  permanently.  From 
these  causes,  as  well  as  from  the  alarming  mortality  among  the  blacks 
during  and  since  the  war,  the  number  of  laborers  available  for  the  culture 
of  cotton  has  been  reduced  one  half  since  1860. 

All  the^e  difficulties  we  admit  exist;  but  still  the  fact  remains  that 
the  freedmen  are  notv  the  sole  reliance,  and  must  for  a  long  time  continue 
to  be  the  main  reliance  of  the  South.  How  can  the  planters  best  use 
them !  At  present  in  employing  field  hands  two  systems  of  payments  are 
adopted,  one  by  giving  a  share  of  the  crop,  and  the  other  by  wages. 
Under  existing  circumstances  neither  of  these  plans  have  been  found  to 
work  satisfactorily.    In  the  share  system  the  laborer  usually  receives  one 

9 


f  79  LABOB  IS  TBM  BOUTH.  [OcfoicT, 

half  the  cotton  and  corn  he  raises,  provided  he  ''finds"  hiouelL  If 
rations  are  given  him  his  share  of  the  crops  is  usually  one-third  or  one- 
quartef.     In  some  instances  the  laborer  is  given  the  use  of  a  certilD 
amount  of  land  in  consideration  of  bis  services,  by  which  he  becomes 
practically  a  tenant,  paying  one  quarter  or  one-third  of  his  crop  ss  reit, 
and  finding  his  own  teams,  tools  and  seed.    lo  the  wages  sjstem  the  pay 
is  from  ten  to  fifteen  dollars  per  mouth,  according  to  eircQmsUDce&- 
an  experienced  and  industrious  hand  being  worth   mora  than  ooe  who 
is  ignorant  or  indolent.    Both  of  these  systems  have,  as  related  aW, 
been  found  to  work  favorably  only  in  certain  instances.    The  psymeot 
of  wages  grves  the  planter  a  greater  control  over  the  dailj  labor  of 
the  workmen,  and  enables  him  to  carry  out  a  general  system  of  imple- 
ment on  his  farm,  but  he  gains  no  such  control  over  the  laborer  as  viD 
secure  him  his  assistance  all  through  the  crop  season.    In  case  of  aoj 
attraction  away  from  the  plantation,  or  any  election  or  other  excitemett, 
or  sometimes  from  a  simple  desire  to  spend  the  wages  already  eariKd, 
the  freedman  will  leave  his  work  even  at  the  most  critical  period  of  the 
season.    There  are,  however,  instances  in  which  the  wages  system  hai 
been  satisfactorily  tried.    On  the  plantation  of  Col.  Lockett,  of  Georgia 
it  has  been  found  to  work  well ;  and,  if  the  statements  of  correspoikl- 
ents  are  trustworthy,  the  results  of  its  adoption  have  proved  aatiifae 
lory  in  a  remark>ible  degree.    Col.  Lockett  hires  his  laborers  by  th< 
year,  and  pays  quarterly  in  currency.    Field  hands  are  classified  Aocor  ■* 
ing  to  the  amount  of  work  they  are  capable  of  performing,  and  (he  va^^e 
for  each  class  is  stipulated  by  the  employer,  to  which  is  added  ooe  ratioc 
consisting  of  four  pounds  of  bacon  and  one  peck  of  commeal  to  each 
laborer  per  week.    We  are  inclined  to  believe,  however,  that  the  success 
which  has  attended  the  practical  workings  of  the  wages  system  io  this 
instance  is  mainly  due  to  the  personal  energy  and  executive  ability  o 
Col.  Lockett,  whose    management  of  his  estate   evinces   a  d^ree  o! 
judgment  and  perception  rar>  ly  manifested  even  by  the  most  intelligest 
planters ;  and  hence  we  find  that  under  less  able  and  energetic  manage* 
ment,  the  adoption  of  this  system  has  led  to  very  different  results.   Ic 
fact  the  freedmen  are  not  like  other  laboreia.    Their  long  life  spent  io 
slavery  has  given  them  their  unstable  characters,  making  them  in  nsBy 
respects  like  overgrown  children,  caring  only  to  supply  present  wants  and 
having  little  thought  for  the  future.   To  keep  them  up  then  to  their  work 
it  has  been  generally  found  that  some  interest  in  the  resalt  of  the  crop 
was  a  great  assistance,  and  hence  it  is  our  opinion,  based  on  the  results 
of  inquiry  and  observation,  that,  in  most  instances,  planteit  in  the  eottoo 
belt  would  find  it  greatly  to  their  advantage  to  adopt  a  system  embody 
log  the  beat  features  of  both  the  systems  now  being  tried  with  bot 


1869]  LABOR  IK  THE   BOUTH.  [278 

ifldifierent  suooess.  We  believe  the  share  eystem  to  be,  on  the  whole, 
mach  the  better  of  the  two,  but  we  see  no  reason  why  it  should  be 
adopted  by  the  planters  to  the  exclusion  of  the  other,  which  unquestion* 
ably  possesses  some  good  features.  By  giving  the  laborer  an  interest 
and  a  pride  in  the  crop,  the  share  system  certainly  stimulates  him  to 
greater  iodustry,  increases  his  self-respect,  develops  his  individuality  and 
quickens  both  his  mental  and  physical  powers,  helping  to  make  him  in 
some  degree,  at  least,  a  responsible  member  of  society.  This  is,  above 
all  thiDg9,  the  kind  of  education  the  freedmen  need  to  make  them  good 
laborers ;  compel  them  to  look  into  the  future — not  to  live  on  the  present 
alone — ^and  you  have  at  once  made  them  provident  and  reliable.  This 
system  also  gives  the  laborer  the  strongest  of  all  motives  to  increase, 
improve  and  protect  the  crop  by  every  meanti  in  his  power,  for  his  inte- 
rests are  identical  with  those  of  his  employer ;  and  in  the  end  we  thiok 
it  will  actually  inciease  the  amount  of  labor,  as  the  man  who  is  culti- 
vating a  number  of  acres  for  himself,  in  part,  will  command  the  services 
of  bis  wife  and  children  in  case  of  need.  In  this  way  a  large  force 
of  laborers,  now  withdrawn  from  this  department  of  industry,  will  bo 
returned  to  it  again,  and  the  effect  be  seen  in  fuller  crops  and  greater 
prosperity. 

In  making  contracts,  however,  the  planter  must,  of  course,  exercisa  an 
intelligent  judgment  and  a  keen  discrimination.  It  could  in  no  way  result 
to  bis  advantage  to  entrust  his  land  to  the  care  of  indolent  and  improvi- 
dent negroes,  who  would  be  content  with  a  bare  subsistence  as  the  result 
of  their  year's  labor.  Due  allowance  must  also  be  made  for  the  ignorance 
which  is  the  legitimate  result  of  their  former  condition,  as  well  as  for  the 
demoralizing  and  intoxicating  effects  of  a  sudden  elevation  to  their  present 
social  and  political  status.  Whether  agreeable  or  otherwise,  the  Southern 
people  must  recognize  the  existence  of  a  new  order  of  things  and  male  s 
themselves  conformable  to  it.  Where  the  planter  finds  his  tenai<  ^ 
ignorant,  it  is  his  duty  and  his  interest  to  instruct  and  counsel  them,  ami 
by  his  greater  knowledge  and  experience  teach  them  to  farm  on  correct 
and  economical  principles.  This  may  not  have  an  immediately  perceptible 
influence,  but  the  good  accomplished  will  tell  powerfully  in  the  future. 
More  than  this,  a  system  of  free  schools  for  the  children  of  the  freedmen 
should  be  established  and  encouraged  in  every  State  and  supported  by  a 
general  school  tax,  as  in  the  North.  Under  such  instruction,  and  with 
such  substantial  encouragements  to  honest  industry,  the  negro  would 
soon  become  more  intelligent,  self-reliant  and  capable,  and  the  labor 
problem  would  sooner  or  later  work  out  its  own  solution. 

There  are,  it  is  true,  certain  disadvantages  in  the  share  system  that  has 
heretofore  prevented  its  more  general  adoption  in  the   Cotton  States. 


274  BRSADSTVrjrs.  lOMter^ 

The  most  important  of  these  is  the  difScuIty  of  carrying  on  the  geoeitl 
work  of  the  farm,  such  as  ditching  where  drainage  is  necessarj,  repa^risg 
huildings,  machinery,  fences  &o^  clearing  new  lands  and  preparing  it 
for  cultivation,  and  other  important  matters  incident  to  the  proper  csis 
of  a  plantation,  that  would  not  belong  to  the  laborer  hired  by  contnct  to 
cultivate  a  certain  number  of  acres  on  shares.  For  this  kind  of  work  the 
planter  will  find  it  for  his  interest  to  make  seperate  arrangements, emploj- 
ing  a  number  of  laborers  during  part  of  the  year,  which  leaves  him  free 
to  engage,  control  and  discharge  supernumeraries  as  be  may  see  fit* 
Thus  the  two  systems  can  be  made  to  work  together  advantageoosly  ud 
profitably,  by  paying  the  freedmen  first  with  a  smaller  share  in  the  crop 
than  has  heretofore  been  customary,  and  second  with  a  limited  amount  of 
money  per  month ;  while  the  general  work  on  the  plantation,  afber  tbe 
crops  are  gathered,  can  be  kept  ap  by  continuing  on  wages  sach  hands 
as  are  required  for  that  purpose. 

It  is,  of  course,  both  desirable  and  necessary  that  labor  in  the  cotton 
districts  should  be  more  abundant,  but  until  it  is  so  the  planters  most 
make  the  best  of  the  present  condition  of  afifairs.  Coolie  labor  and 
immigration  from  Europe  or  the  Northern  and  Western  States,  roav 
ultimately  furnish  an  abundant  supply ;  but  these  are  matters  of  the 
luture ;  at  best,  many  years  will  elapse  during  which  the  labor  of  the 
blacks  must  be  the  main  reliance.  It  is  the  part  of  wisdom,  therefore, 
that  in  the  organization  of  industry  in  the  South,  the  labor  of  the  freedoiefi 
should  be  treated  practically,  aside  from  any  speculative  theoriziDg  orer 
possible  immigration  in  the  future.  Whether  the  blacks  become  more 
and  more  valuable  each  year,  or  whether  they  deteriorate  in  a  proportionate 
ratio,  depends  mainly  on  whether  the  landed  proprietors  of  the  Sonth 
are  willing  to  accept  and  master  the  situation  as  they  find  it,  or  whether 
they  prefer  to  devote  themselves  mainly  to  the  discussion  of  vast  schemes 
of  immigration  depending  for  tbeir  success  on  innu.uerable  uoforesea 
contingencies. 


^^w%^»^^^^^*^^^^*^^»^fcgarf»^^»^»^>^i^>^>^»^>^»^ 


BREAOSTDFFS. 

The  present  position  and  future  prospects  of  our  market  for  Bread- 
stuffs,  are  subjects  of  unusual  importance  in  various  relations.  Tbe 
resources  of  the  agricultural  community  and  their  capacity  to  purchase 
the  products  of  our  manufacturers  and  the  goods  of  our  importer?,  are 
involved  on  the  one  hand;  while  public  finances  are  subject  largely  to  tbe 
influence  their  exportation  may  exert  upon  the  foreign  exchanges. 

It  may  be  premised,  that  we  have  a  magnificent  crop  of  wheat,  nnsor- 
passed  if  ever  equalled  in  quantity,  and  wholly  acceptable  on  the  wenp 


1869]  BBXABSTUFVS*  275 

in  quality.  Of  Indian  com,  there  is  undoubtedly  a  deficiency  from  the 
average  crop  of  from  fifteen  to  twenty  per  cent.  But  in  proportion  to  the 
quantity  grown,  corn  does  not  possess  the  mercantile  importance  of  wheat. 
A  mnch  larger  proportion  ia  consumed  or  fed  near  where  it  is  grown.  Of 
course,  it  enters  finally  into  the  aggregate  value  of  the  products  of  the 
country.  Our  supply  of  pork,  lard,  bacon,  &c.y  depends  upon  it,  and  they 
are  largely  exported.  But  it  Is,  of  itself,  not  of  first  importance  as  a  'Vash 
article."  Of  oats,  the  yield  is  very  large  and  the  quality  good,  but  they 
are  seldom  exported  to  any  extent.  Rye  is  a  fair  crop,  and  unless  main- 
tained at  a  high  figure  by  a  distilling  demand,  in  lieu  of  corn,  it  may  be 
exported  to  Germany  to  aome  extent.  Barley  is  a  full  crop,  but  not  of 
prime  quality,  and  will  probably  not  be  exported. 

It  will  be  seen  from  this  brief  review,  that  bo  far  as  foreign  markets,  and 
consequently  the  state  of  exchanges,  are  concerned,  we  are  limited  in  our 
observations  to  the  single  staple  of  wheat. 

We  have,  as  we  have  said,  a  crop  unprecedented  in  quantity  and  excel- 
lent in  quality.  What  shall  be  done  with  it  ?  Reducing  flour  to  wheat, 
our  exports  for  the  year  ending  the  first  September  may  be  set  down  at 
thirty  million  (30,000,000)  bushels,  against  twenty-two  million  (22,000,000) 
bushels  for  the  preceding  crop  year.  The  United  Kingdom  last  year  had 
a  very  fine  crop  of  wheat ;  so  that,  notwithstanding  the  increased  con- 
sumption incident  to  a  material  decline  in  prices  and  relatively  high  prices 
of  roots  and  coarse  grains,  she  did  not  import  more  than  fifty  million 
(50,000,000)  bnshels  of  wheat,  (including  flour  reduced  to  wheat,)  against 
about  sixty-five  million  (65, 000,000)  bushels  the  preceding  year.  And 
yet,  with  this  decreased  importation  from  all  points,  she  increased  her  draft 
upon  the  United  States,  taking  from  us  about  twenty-two  million 
(22,000,000)  bushels,  as  against  fifteen  million  (15,000,000)  bushels  in  the 
preceding  year. 

What  these  statistics  indicate,  respecting  the  supplies  of  wheat  in  other 
countries  from  which  England  has  been  accustomed  to  make  good  her 
deficiencies,  must  be  in  good  part  conjectured.  Whether  the  lower  prices 
caused  growers  to  withhold  their  wheat  from  market,  or  induced  such 
increase  of  consumption  as  to  curtail  the  supply  for  export ;  or  whether 
other  countries  competed  for  their  surplus ;  or  whether  there  was  a 
deficiency  in  the  growth  equal  to  the  falling  ofif  in  the  export  to  Great 
Britain,  cannot  be  accurately  determined.  It  seems  probable,  however, 
from  such  reports  as  we  have  been  able  to  gather,  that  while  England  had 
some  new  competitors  in  buying,  the  yield  in  the  aggregate  was  not  so 
large  as  in  former  years,  nor  does  it  appear  probable  that  the  coming 
year  will  be  any  improvement  on  the  last.  If,  therefore.  Great  Britain  is 
to  increase  her  supplies  for  the  present  crop  year  from  countries  other 


276  LOUISVILLE,   CIKOINKATI  AKD   LtXINGTOir  RR«  [OcUhtf^ 

than  the  United  States,  it  must  evidently  be  by  means  of  a  conadenble 
advance  in  prices. 

Great  Britain  admits  a  deficiency  in  her  crop  jnst  gathered  of  13  per 
cent.  Her  necessary  importation  for  the  next  twelve  months  is  set  down 
as  high  as  ten  million  quarters,  or  eighty  million  bushels,  and  is  rtrdy 
stated  at  less  than  eight  million  quarters,  or  sixty  four  million  boshek 
Can  she  secure  this  large  quantity  at  current  prices  ?  We  have  alresdy 
stated  that  she  took  from  us  in  the  past  year  twenty-two  million  bosheb. 
Can  we  send  her  for  the  current  year  thirty  million  bushels!  And  if  re 
can,  whence  phall  she  draw  the  remaining  forty  million  bushels,  adopting 
seventy  milHons  as  an  estimate  of  her  needs  f  There  is  nothing  in  the 
aggregate  reports  of  the  yield  on  the  Continent  of  Europe  to  indicate  an? 
increase  of  shipments  to  Great  Britain  from  those  markets.  Indeed,  oces- 
sional  shipments  from  this  market,  both  to  the  south  and  to  the  north  ef 
Europe,  are  a  significant  fact  bearing  upon  this  point. 

There  can  be  no  doubt  that  we  shall  be  able,  without  serious  inoonre- 
nience,  to  increase  our  shipments  to  Great  Britain  for  the  coming  jesr  to 
the  extent  of  eight  million  bushels.  Its  transportation  to  the  seaboard  will 
be  an  item  of  some  consequence.  Thirty  million  bushels  to  Great  Britain 
mean  about  forty  million  bushels  to  all  foreign  markets,  of  which  California 
may  be  reckoned  upon  to  contribute  one  quarter.  The  whole  io<iicat» 
active  employment  for  shipping,  and,  in  connection  with  the  export  of 
cotton  and  other  staples,  an  abundant  supply  of  mercantile  bills  on  the 
market  for  exchange. 

The  present  movement  of  wheat  and  fiour  at  the  West  is  somewhat 
abnormal.  Notwithstanding  the  admitted  increase  in  the  yield,  the 
receipts  at  the  lake  ports,  both  of  flour  and  wheat,  and  the  quantiif 
moving  Eastward,  are  smaller  than  last  year,  as  will  be  seen  by  refereoca 
to  the  statistics  which  we  publish  in  our  regular  report  of  the  market  on 
another  page.  This  is  caused  by  the  fact  that  the  crop  of  spring  wheat 
is  fully  twenty  days  later  than  last  year,  and  that  the  movement  embraced 
in  the  figures  which  we  have  printed  for  some  three  weeks  or  more,  has 
been  made  up  almost  entirely  of  the  new  crop  of  winter  wheat  As  we 
write,  however,  the  new  spring  wheat  begins  to  move,  and  will  soon  show 
in  our  statistics. 


LOUISriLLB,  CINCINNATI  AND  LEXINGTON  BilLSOAIS. 

The  Louisville,  Cincinnati  and  Lexington  Railroads,  as  now  existinfl;  and 
being  operated,  comprise  the  two  railroads,  which  together  extend  from 
Louisville  to  Lexington,  Ky.,  as  follows  :  Louisville  and  Frankfort  Rail- 
road, Louisville,  Ky  ,  to  Frankfort,  Ky.,  66  miles ;  Lexington  and  Frank- 


1869]  L0UI8YILLK,  CHrOtimATI  AND   LEZIirOTON  RR.  2Y7 

fort  Railroad,  Frankfort,  Ey.,  to  Lexington,  Ey.,  29  miles ;  and  the  Cin« 
€1008 ti  branch,  froai  Lagrange  to  Cincinnati,  81  miles,  making  a  total 
of  175  miles  operated. 

It  thus  appears  that  whil«  each  company  retains  its  separate  organiza- 
tion, the  two  companies  ander  the  firm  of  the  Louisville,  Cincinnati  and 
Lexington  Railroads,  are  partners  in  operating  the  railroad  between 
Louisville  and  Lexington,  and  joint  owners  of  the  Cincinnati  branch  ^o  be 
bailt  with  moneys  raised  on  their  joint  credit.  It  is  easy  to  see  that  'this 
organization  is  cumbrous,  and  would  be  greatly  simplified  by  a  consoli- 
dation of  stocks ;  and  Uie  President  remarks  in  his  leport  that  a  pro* 
position  looking  to  this  end  would  be  submitted  at  the  annual  meeting, 
which  it  was  hoped  would  be  adopted,  and  the  two  companies  be  made 
one  corporation. 

The  following  comparative  statement  of  the  financial  afiairs  of  the  two 
companies  shows  the  present  condition  : 

T4>«.AFrank<  Lex.  AF^ank.  Total. 

CtpffaUtoek $l,t09,(»4  40  |514,71S  03  fl,6«4.S10  4S 

Deoteecared  by  mortgage.... 1SS,0  0  OO            25,0U0  00  Sli.OUO  00 

DeU  OBfleCiired 74,619  M             74,619  60 

Total  liabilities $1,873,118  90       $639,716  03        $1,9X1,839  93 

The  joint  liabilities  on  account  of  the  Cincinnati  Branch  are  borne 
by  the  two  companies,  as  between  themselves,  in  the  Eame  ratio  in  which 
their  profits  are  divided,  and  do  not  therefore  constitute  an  element  in 
considering  the  terms  of  consolidation. 

[o  regard  to  the  Cincinnati  Branch  the  President  remarks,  '*  that  the 
end  of  the  fiscal  year  witnessed  the  cpening  of  the  Cincinnati  line  for  pas- 
senger business.  It  was  a  month  later  before  the  completion  of  our 
temporary  station  buildings  at  Covington  enabled  us  to  advertise  our  readr* 
ness  to  carry  freights.  The  total  expenditures,  exclusive  of  discounts 
and  interest  paid,  is  $3,827,908  42.  The  Auditor's  general  balance- 
sheet  indicates  the  mode  by  which  these  means  have  been  provided. 
The  item  of  bills  payable  in  the  sheet  includes  the  sum  of  $60,393  24  for 
interest  yet  to  accrue  on  notes  given  for  rails  and  equipment.  The  float- 
ing debt  is  provided  for  by  the  deposit  as  collateral  security  of  372  mort- 
gage bonds  and  6,617  shares  of  preferred  stock.  The  larger  portion  of 
the  debt  for  which  they  are  pledged  will  not  mature  for  nearly  two  years 
to  come,  so  that  ample  time  will  be  afibrded  to  realize  the  hypothecated 
securities  for  its  payment." 

''  The  brief  experience  which  we  have  had  from  the  opening  of  the  road 
to  the  time  of  writing  this  report  is  very  far  from  discouraging.  We  have 
been  carrying  passengers  but  six  weeks,  and  the  public  are  jusc  beginning 
to  understand  the  advantages  which  we  ofier  them.  The  passenger 
receipts  for  the  month  of  August  will  very  closely  approximate,  if  they 


2t8 


liOUIfiTILLX,  CXKCUTNAn  AKD  VBZIBCTOK  BE. 


[OeUkt^ 


do  not  exceed,  those  of  the  old  road,  wbtch  lias  been  in  succeuful  open- 
tion  for  nearly  twenty  yearp.     As  it  is  only  a  fortnight  since  we  adTertised 
our  readiness  to  carry  freight,  we  can  not  be  said  to  have  had  any  actui 
experience  of  the  business;  but  I  may  add  that  it  is  already  evident  thai 
the  freight  traffic  from  the  eastern  end  of  the  Lexin^on  Line  will  receive 
large  accessions  from  the  use  of  the   Cincinnati   Branch,  and   that  the 
business  between  Cincinnati  and  Louisville  is  beginning  to  develop  it'elf 
very   encouragingly.    There  can   be  no  dotil.t  of  a  steady  increase  of 
both  passengers  and  freight  even  while  matters  remain  a»  they  are;  and 
if,  as  there  ia  every  reason  to  hopey  we  shall  be  able  next  year  to  com- 
plete  our  connections  at  both   Louisville  and  Cincinnati,  the  increase 
can  not  fail  to  be  immediate  and  very  great.** 

The  earnings  and  expenses  for  the  year  ending  June  30  were  as  fol- 
lows: 

\ 


XABmXM  voa  vmai  tsam  iast. 

18()8-9.    1867-8.     1866-7  I  1800.        VTS 

PMsengen $867,008  $«77,70S  $»8,81i  [  Ck>Ddoct]BfTriiiep*n tTI,aS  fn^iift 


Freight 820,398    187,947    202,187 

Bxpreva. 14,868) 

SlIS*'-^:-::::::::    J:JS  «••»  "•*» 

MiBceUan'e 818  J 

Total $508,871 1496^818  $510,819 


Motlye  power..   ' 77,703  "TIjM! 

Kalnteosiioeofway 2as,»a  Visas 

Maintenance  of  can    « 4i«ti3  ZVn 

Geneial  eipenaca 18^  1X19 


Total $841,115  tSSkri 

Neteamloga $l6S,'B«$15i,Mt 


OEMCaAIi  STATBMllfT  OV  aiCBIPn  AMD  KXPBKBI8    FEOM    ALL 

■MDmo  KKE  80,  1869. 


BOVftOIS    FOft    TBB   TEAS 


Operating  ezpenaes  for  year.  

CoQBtraction  Ciocin.  Branch. 

Intero't  on  boadp.  etc 

Dividends  on  prei.  £tock 

Baal  estate..... 

Paid  to  Bandry  Individaala 

Lonievilie  dt  f  raokfort  JR .  R ....... . 

Ltziogton  A  Frankfort  K.  R. 


.    $811,115 

.   1,781,19^ 

170,074 

68,188 

6,805 

78,852 

74,078 

83,439 

$8^531,688 


Tr«nBp*n  receipts  Ikx*  year. 

Sales  ofbond  $518,000 

Less  discoant.. 7SJB00 


84l*«  of  prrfer;ed  ato^. . 

Bills  payable 

Decrease  of  ca^h  on  band 
Dec.  in  stock  of  sappUea. 


SAGO 

15,665 

$8,5S1^ 


The  following  table^  compiled  from   the  ADuual   reports^  shaws  the 
results  of  operations  for  a  series  of  ten  years : 


*— — -QrOBS  earnings  —  --»     Car- 
Fiscal                           Pacsen*  rent  ex- 
yean,                               gers.  Freight.  Other.  Tot«1.  pe  set. 

18596U $819,184  $105,988  $18,861  $890,877  $811,891 

ISHOfil 158,897    181,804    49,654  854,855    sl8.f»98 

1861-69 ■ 97.T76    141489    19,0»  85^287    16 ',088 

1>>G3  63 101,899    801,188    19,196  889,889    188,97i 

I8fi8  64 ^ 149,988    977,848    19,170  484,840    88l,fi09 

1S61-65 874,985    804,746    89.794  «09.595    411,186 

1865-66. 874.499    165,808    96,(.08  66i,8l'9    466,(106 

186H.67 883,818    8u8Jl88    a4,.HS8  610,8^9    157,108 

1867-68 8T7,708    187,948    88,868  498,819    886,978 

186£-69 857,558    980,898    S5,9U)  603,871    841,113 


Net  ^^Eamincs 
earn^    per  Biiie>^ 
irgs.  G'Ose     Net 
$1711,148  $1,158  $1,916 
141,947    2,775    1,510 
89,Sli    8,747       949 
18:i,957    8  488    1.485 
&04.781    4,674    t,t78 
1!  8,889    6v4S4    9.110 
159.1C6    6,967    1 6B8 
1'3,S17    6,489    1,980 
157,847    6.94»  1.6lt 
16^,755    5,860    1,781 


R 


c 
4.U 
t»M 
6S.4I 
58.4} 
SI.4> 
67.46 

t:.7i 

7U0 

f;<9 


▲Terage $  U8,44T  $188,899  $18,768  $481,018  $M0,89i  $160,74)  $  M78  $1,7U9  adi 

The  financial  condition  of  the  Company  at  the  close  of  the  last  two  jean 
ending  June  30,  1668  and  1869,  is  shawn  in  the  following  abstract  from 
the  general  account : 

18f8.  18«9. 

Preferred  stock,  9  per  rent •,..  t81Mlt  $84!i.5« 

Flrstmortgsgobonds,  6  percent,  dae  1897 8,116,000  8,6B5,(M} 

Beeervstion  on  contracts 10.*,8N9              •-• 

Dne  other  companies 848  OH 

Bills  i>ay»ble  for  rails,  Ac 419,814  IfiliJ^ 

Unpaid  coupons 18,110  4.tu 

Unpaid  dividends 7,618  4.491 

Dne  sundry  ihdlvldnsls 1,*»80  *»,I58 

Halanoe  to  ciedlt  of  income  account «  ....  96^89  l^-^* 


Total«..^« ^ ^ M..  ....,$8,905,81$ 


$MSS,I» 


1869]                                       BRIBOINa  THE  HI8SISSIPFL  279 

Per  cootra,  the  following  charges : 

CindrnaU  Branch $2,in7,lfl8  8,P27,90S 

Di<*cr)nst  OB  bond« 817,400  8<J4,20o 

Intereaton  bonds 71,691  849,265 

DlYldeild  on  prefsne'l  Block 6S,1S8 

Total  oonstrnctlon  accoant $S.496,S58  $4,570,989 

Doe  from  anndry  indlyidnale 98,Bh8  19,087 

heal  estate 23.250  29,055 

Brock  of  eappllea  for  cnn«nt  operation! 6M66  4S,T70 

Cash  on  band 889,952  14,502 

Total $8,995,945  $4,683,851 


^0^^^>^0^^^^^^^0^0^t'^^^^^^^^^^^^^^^^^^^0^m 


mmm  the  hississippi  and  the  deteiofment  of  our  internal 

COniERCE. 

On  the  7th  iD^t.  an  important  convention  waa  held  at  Keokuk,  Iowa 
The  call  invited  all  the  St^es  and  communities  of  the  Mississippi  Valley 
vbo  desired  to  $^ee  the  Great  River  and  its  branches  freed  from  the  fetters 
natural  or  artificial,  that  obstruct  its  navigation  or  retard  its  commerce» 
to  be  represented  bj  delegate?*  It  was  understood  that  the  Convention' 
in  addition  to  affirming  the  necessity  of  government  appropriations  for 
freeing  the  water  way  and  deepening  the  channel  of  the  rivers  designated, 
professed  also  to  take  action  with  regard  to  the  bridges  which  railroad 
compaDies  have  constructed  over  these  great  western  water  couri:es.  The 
leading  purpose  was  to  free  the  Mississippi  and  to  utilize,  in  the  highest 
degree,  the  splendid  natural  lines  of  communication  which  are  found  in 
our  western  States,  connecting  communities  removed  from  each  other  by 
n^any  degrees  of  longitude  or  latitude.  It  represented  another  effort  in 
tlie  contest  for  the  transportation  of  products  which  is  in  progress 
between  the  railroads  and  the  water  routes. 

So  far  as  the  question  of  bridging  navigable  rivets  is  concerned,  the 
point  is  settled  by  our  highest  courts.  The  old  doctrine  of  the  Common 
Law,  whose  roots  are  found  far  back  in  the  history  of  the  people  from 
wliich  we  largely  derive  our  law  and  our  tradition,  threw  its  amplest  pro- 
teciion  around  the  lines  of  natural  communication.  Rivers,  and  bays  and 
estuaries  were  sacred,  and  the  iron  rule  of  prescription  came  in  to  ratify 
what  the  law  had  conceded.  With  the  growth  of  new  interests,  the 
^•.raands  of  an  expanding  commerce,  the  competition  of  new  methods  of 
transportation,  there  waa  inevitably  to  be  a  conflict  between  these  ancient 
'Jifnts  and  claims  and  the  exactions  of  the  new  method.  The  contest  was 
confined  to  the  courts,  and  out  of  dangerous  litigation  came  the  safe  com- 
proi])ise  on  which  the  modern  relation  of  steam  by  land  and  steam  or  sail 
h  water  is  adjusted.  The  navigable  river  is  bridged,  but  the  bridge  must 
sufficiently  clear  the  main  water  way  and  must  offer  no  insuperable  or 
difficult  obstacle  to  navigation.    The  question  of  bridging  the  Ohio,  the 


280  BRIDGING   THE  MISSISSIPPI.  [(kiohtf, 

Susquehanna,  the  Hudson,  the  Mississippi,  the  Missouri,  is  not  local    It 
rises  to  national  importance.    In  the  great  sweep  of  the  leading  nulrosd 
lines,  they  comprehend  the  traffic  of  a  continent    Thej  are  no  longer  foe 
a  State  or  for  a  section  of  a  State ;  the  seaboard  cities  and  the  growing 
towns  of  the  interior  being  all  vitally  interested  in  the  crosnng  of  ths 
great  rivers,  for  thereby  time  is  saved,  money  is  saved,  the  iarmer  has 
higher  prices,  the  great  commercial  houses  have  quicker  returns,  prodacti 
are   cheapened    to  the  consumer,  emigration  is  encouraged,  the  whole 
country  is  compacted  and  so  bound  by  iron  bands  that  a  common  interest 
pervades  every  part.    So  great  has  the  importance  of  these  bridges  become 
that   the  value  of  the  commerce  which  crosses  a  single  one  on  the 
Mississippi  river  is  stated  to  be  in  excess  of  all  the  commerce  moved  oa 
the  waters  both  of  the  Ohio  and  the  Mississippi.     Oommerce  cannot  delay 
while  the  water  rises  when  navigation  is  low,,  nor  can  it  wait  sbivent^ 
upon  the  bank  while  the  icy  barrier  of  nature  melts  away.     The  tme 
interest  of  East  and  West — the  amplest  development  of  the  whole  country 
demands  that  railroads  shall  have  as  free  passage  over  our  rivers  as  the 
claims  of  the  river  commerce  will  allow.    Last  of  all  will  it  admit  of  aoy 
unnecessary  exaction  or  of  any  obstacles  that  shall  thwart  the  great  design. 
Every  bridge  is  a  triumph  over  a  natural  difficulty. 

From  the  Committee  of  the  Convention,  two  rep3rts  on  the  bridge 
question  were  submitted.  The  majority  report  was  adopted.  It  indaded 
a  bill  to  be  presented  to  the  next  Congress,  of  which  the  important 
sections  are  as  follows  : 

That  anv  bridges  hereafter  erected  across  the  Ohio  river  eh  ill  be  made  with 
continaoas  and  unbroken  epaos,  and  the  epao  across  the  maio  low  water  ctaooel  •haU 
Dot  be  at  a  le^s  eievatioo  than  nioety  feet  above  low  water  mark,  oor  lees  than  (xtj 
feet  abive  the  extrem«  high  water  mark,  as  anderstcxxl  at  tbe  point  of  locatun. 
Meaeuria  for  such  elevation  ahall  be  taken  at  tbe  bottom  chord  of  the  bridge.  All 
the  epana,  otb^r  thao  tbe  one  over  tbe  main  low  water  chanael,  ahall  be  at  £a-«t  SOO 
feet  in  leni^th  in  the  c'ear,  and  tbe  span  covering  the  maio  low  WAier  channel  of  the 
liver  shall  be  of  such  length  as  to  le.kve  at  least  400  feet  of  unobstructeJ  pastage 
way  for  navigation  at  all  atagee. 

That  any  bridge  built  under  the  provisions  of  this  act  shall  be  located  in  radi 
places  and  in  such  manner  as  to  be  at  right  angles  with  the  direction  of  the  cnrreot  io 
tlie  main  ch  mnel  of  the  river  at  all  stages,  so  that  the  pierj  of  aa  d  bridge  may  be 
always  parallel  to  the  current  in  the  main  chann-il,  and  the  locatiim  of  the  bridge 
ehall  alwa>8  be  each  that  the  rurrent  of  the  mai'i  channel  shUl  move  to  a  straii^h: 
line  from  a  poiot  at  least  1,000  feet  above  the  bridge  to  a  point  60*>  feet  belov  tbe 
bridge,  and  uo  rip  rap  or  other  material  shiU  be  pUced  rou'^d  the  base  of  the  pios 
or  abutments  to  compensate  for  inadequate  foundations,  which  material  ehall  oootract 
the  passage  way  hereinbefore  provide i  or  which  ahall  iojurioasly  affect  tbe  regioeo 
of  the  river. 

That  all  bridges  hereafter  to  bo  built  on  the  Mieaissippi,  below  the  moath  cf  fh^ 
Miseoori,  shall  Im  cooetracted  onder  the  foregoing  cooditione  and  restrietioos,  vitb 
the  exception  that  the  maio  span  shall  be  at  least  five  hundred  feet  in  the  c  ear. 

That  all  bridges  hereafter  built  on  the  Missouri  river  and  Misaissippt  river,  abcre 
the  mouth  of  the  Missouri,  shall  be  built  under  the  foregoing  conditions  an  1  r^trie- 
tion",  with  the  following  ezceptiona,  viz. :  If  constructed  with  c*>ntinooa8  spans,  said 
i>ridge  shall  have  one  spaa  over  the  maio  channel  of  not  less  thao  800  feet  dear 


1860]  BRIOOINO  THB  MI88I8BIPPI.  281 

water  way,  and  the  bottom  chord  of  89 id  bridsre  phall  not  b9  lew  than  fifty  f6<*t  aboy« 
extreme  high  water  mark,  and  if  built  as  a  druw  bridge,  it  may  be  constrncted 
niLh  a  pi?ot  or  coonterbabnce  draw  over  the  main  chanoel  of  not  lees  than  800  feet 
of  c'ear  water,  and  that  the  draw  ehal)  be  promptly  opened  upon  signal,  that  no 
delay  be  caused  to  any  steamboat  or  barge,  tow  or  other  craft. 

That  the  righ'.  to  alt«>r  or  amend  this  act  ho  as  to  prevent  or  remove  all  material 
obstructions  to  the  navigation  of  said  river  by  the  conatrnction  of  bridges  is  hereby 
reserved. 

Another  clause  provided  for  the  reference  of  plans  for  bridges  to  the 
Secretary  of  .War  and  the  designation  by  him  of  a  board  of  officers  to 
examine  the  plan. 

The  objection  to  this  bill  is  that  the  span  required  is  of  too  great  a 
length.  In  the  case  of  the  span  where  the  revolving  draw  would  be, 
some  seven  or  eight  hundred  feet  of  continuous  span  supported  at  the 
centre  would  be  required.  The  height,  too,  above  the  water  way  would 
be  excessive  where  the  river  banks  did  not  offer  a  suitable  elevation.  It 
is  not  probable  that  Congress  will  look  at  this  matter  precisely  as  the 
Convention,  which  was  largely  composed  of  river  men,  regarded  it,  and  as 
we  have  shown  before,  the  highest  interests  of  the  whole  country  require 
a  large  and  comprehensive  plan  in  accordance  with  the  era  of  progress 
and  development  upon  which  we  have  entered. 

So  far  as  the  Convention  evinced  a  disposition  to  enter  upon  a  scheme 
for  expanding  the  commerce  of  the  Mississippi  and  its  tributaries,  it  meets 
the  approval  of  all  who  are  interested  in  the  growth  of  the  country* 
Action  of  this  kind  was  taken,  and  a  report  and  resolutions  upon  the 
subject  submitted  and  adopted,  with  the  following  estimate  showing  the 
cost  of  icQproving  the  rapids  of  the  Mississippi : 

Des  Koines  Rapids $1,479,«4T 

Rockl-JandRapldi 8P,6()l 

Fpper  MlasUsipl, » stimatm  by  General  Q.  K.  Warren ...» 33l.4(» 

Mi.uthoriheMisBissippl,  eftlmate  by  General  McAllister 815,000 

Removalof  fnigs  and  wrecks  and  dredgin? 1,UAOOO 

Ohio  Rivc-r,  Faliaof  .he  Ohio,  estimates  by  General  Godfrey  Weltzel— Extension 

ofoldcaial »?W,500 

New  canal,  Indiana  shore 8,47),00') 

Twodanw 2i5,000 

Total $8,678,218 

AhoTeihefalis,  W.  Milner  Rober's' estlmatos 473,000 

Below  ihe  fklls,  W.  MUlner  Boberts 383,000 

Orandtotil! $9,514,2ia 

The  resolations  asked  for  the  completion  of  the  improyements  at  Des 
Hoines,  at  Rock  Island  and  at  the  Falls  of  the  Ohio,  and  also  asked 
Congress  for  further  expenditure  on  the  improvements  in  progress  at  the 
Balize,  the  removal  of  snags  and  sand  bars  on  the  Lower  Mississippi, 
the  Arkansas  and  the  Missouri  Rivers,  and  of  obstructions  in  the  Obio, 
Illinois,  Tennessee  and  Red  Rivers. 

Whether  Congress  will  consider  it  a  fit  moment  for  furnishing  the 
necessary  funds  is  of  course  questionable.    The  growth  and  development 


282  RAILROAD  PROORXBS.  [Odohn^ 

however  of  the  immense  regioa  drained  by  the  Miseissippt  and  ito 
trilntaries  is  of  the  highest  importance.  Here  is  a  population  of  nearly 
20,000,000  of  souls.  In  1 865  the  total  value  of  the  grain  crop  of  the 
United  States,  as  estimated  by  the  Commissioner  of  Ag^cnltare,  w» 
$1,118,904,376,  in  which  estimuie  ibe  crop  of  Illinois,  Miasoori,  lovs, 
and  Wisconsin,  having  less  than  one-sixth  of  the  population  of  the  Uoion, 
18  put  down  at  one-third  of  the  whole  crop,  or  $391,596,000.  To 
these  returns  add  the  increased  product  of  the  same  States  ance  that 
date  and  the  product  of  Kansas,  Nebraska,  and  large  portions  of  Ohio 
and  Indiana,  add  Eentuckj  and  the  States  below  the  mouth  of  the  Ohio 
and  the  imagination  finds  it  difficult  to  conceive  the  realitj.  Here 
are  13,000  miles  of  navigable  river;  improve  the  facilities  of  this  naviga- 
tion, lower  the  rates  of  charges,  and  the  busineas  now  done  would  nece9< 
sarilj  be  largely  increased. 

We  thus  see  that  as  the  country  grows  there  is  enough  traffic  for  all 
routes.  The  mad  competition  of  business  interests  adjusts  itself,  so  that 
the  wants  of  the  community  are  regularly  met,  and  with  a  uniformity  that 
is  susceptible  of  calculation.  The  natural  conflict  of  rival  interests  must 
be  peaceful  and  their  settlement  must  be  upon  broad,  comprehensire 
principles.  The  Keokuk  Convention  does  good,  for  it  stimulates  enter' 
prise  and  promotes  development.  The  opposing  forces  that  are  repre- 
sented in  such  bodies  learn  to  estimate  each  other  more  truly,  and 
compromise  and  adjustment  dull  the  edge  of  competition,  whose  hot 
and  earnest  zeal  is  ever  seeking  new  fields  for  its  exercise. 

BAILROAD  PROGRESS. 

'  Between  the  Atlantic  and  Pacific  coasts  three  great  mountain  ranges 
and  one  of  the  largest  rivers  of  the  world  intervene ;  no  small  portion 
of  the  interior  is  an  undeveloped  wilderness.  These  formidable  obstroe- 
tions  paralized  progress  for  a  long  time,  so  that  the  whole  district  was 
whollv  shut  out  from  the  seaboard.  This  was  the  exact  position  of  atTairs 
previous  to  the  opening  of  the  New  York  Canal  in  1825.  The  West 
was  then  unsettled  in  the  proper  meaning  of  the  term.  Now,  however, 
the  engineer  has  leveled  the  mountains  and  spanned  the  stream,  so  that 
the  traveler  can  at  present  leave  Portland,  in  Maine,  and  reach  tbe  Pacific 
in  less  than  ten  days  thereafter.  Many  now  livio^r  considered  it  the  extent 
of  speed  to  travel  from  New  York  to  Buffalo  in  the  same  time.  Before 
the  canal  was  dug  a  ton  of  wheat  in  Buffalo  was  commercially  worthless 
in  New  York,  the  cost  of  transportation  to  the  latter  port  then  beiog 
9100  per  ton.  The  same  service  is  now  obtained  for  a  coroparativelj 
trifling  addition  to  the  prime  cost  at  the  port  of  supply. 


1869]  RAILROAD  PROGRESS.  288 

This  great  revolation  has  been  effected  by  the  combined  agency  of  cana\ 
and  railroad.  In  all  countries  into  which  these  powers  bare  been  intro- 
duced the  same  results  have  been  gained,  commerce,  agriculture  and 
manufacturer  bavii^^  thus  attained  proportions  surpassing  the  dreams  of 
the  slow  races  of  old. 

lo  no  country,  however,  werd  these  means  more  necessary  or  have  they 
been  more  perseveringly  pressed  into  service  than  in  the  United  States. 
In  the  older  countries,  the  mileage  of  canal  and  railroad  is,  indeed,  in 
greater  proportion  to  the  extent  of  the  country  and  population  than  in 
America.  But  in  the  magnitude  of  the  works  constructed  and  in  their  bear* 
iogs  on  the  commerce  of  the  world,  those  of  the  United  States  present  a 
proofof  enterprise  unequalled.  At  the  commencement  of  the  current  year» 
there  were  in  the  United  States  42,255  miles  of  railroad.  In  all  other 
parts  of  the  world  the  mileage  aggregated  only  56,030  miles.  It  thus 
appears  that  the  United  States  has  42^  per  cent  of  all  the  miles  of  railroad 
in  existence  at  present. 

Yet  this  proportion  is  rapidly  gaining,  and  before  the  year  closes  we 
shall  certainly  have  at  least  50,000  miles  of  iron-way.  In  whatever 
direction  we  go  we  find  the  people  at  work  laying  the  foundations  for 
future  railroads.  In  Illinois  at  least  a  dozen  lines  are  in  progress,  and 
the  same  may  be  said  of  Indiana,  Michigan,  Iowa  and  Missouri.  Never 
before  was  such  activity  exhibited  in  this  direction.  Undoubtedly  the 
completion  of  the  first  trans- Continental  Railroad  has  stimulated  States 
and  associated  capital  to  action,  and  the  final  result  must  be  an  enlarged 
internal  commerce,  with  increased  prosperity.  When  the  Northern  and 
Southern  Pacific  Railroads  are  completed  other  enterprises  will  succeed 
and  become  as  necessary  to  them  as  arteries  and  veins  are  to  animal 
existence. 

In  proof  of  the  present  activity  in  railroad  construction,  it  is  only 
necessary  to  recite  a  few  facts,  which  will  show  that  on  an  average  each 
State  of  the  Union  has  in  progress  at  least  seven  or  eight  separate  enter- 
prises. Maine  is  now  building  eight  railroads,  New  Hampshire,  four ; 
Vermont,  six ;  Massachusetts,  five ;  Rhode  Island  (?) ;  Connecticut, 
seven ;  New  York,  eleven  ;  New  Jersey,  seven  ;  Pennsylvania,  thirty-two ; 
Delaware,  five;  Maryland,  seven;  West  Virginia,  one,  the  Chesapeake 
and  Ohio,  and  probably  others ;  Ohio,  at  least  a  dozen  ;  Indiana,  Illinois 
and  Michigan,  each  about  the  same  number ;  Wisconsin,  five ;  Minnesota 
seven ;  Iowa  and  Missouri,  each  a  dozen ;  Nebraska,  two  or  three ; 
Kansas,  nine ;  Arkansas,  three ;  Texas,  three  or  four ;  Louisiana,  four ; 
Mississippi,  three;  Alabama,  six,  and  in  the  Southern  Atlantic  States, 
there  are  at  least  twenty  great  works  on  which  progress  is  teing  made 
with  unparalleled  rapidity.    In  a  short  resum6  it  is  impcasible  even  to 


284  BAILBOAD  XABHIMOS.  [Oeiobn, 

Dame  these  eDterprUes ;  but  any  one  acquainted  with  facts  as  they  reallj 
exist,  will  readily  admit  that  our  estimates  are  moderate,  and  that  we  hare 
DOW  under  construction  at  least  300  separate  lines.  Startling  ss  thii 
assertion  ma^  appear,  it  is  nevertheless  an  incontrovertible  fact.  Msnj  of 
these  are  hundreds  of  miles  in  length,  and  probably  the  average  lengtlii 
18  not  less  than  50  miles.  This  calculation  gives  a  total  of  15,000  miles 
as  the  length  of  railroad  now  in  progress,  and  which  will  be  completed 
within  the  next  three  years. 

To  the  tac*j  here  related,  and  the  raising  of  the  necessary  funds  for 
carrying  forward  these  projects,  may  be  aUributed  in  great  part  the 
spasms  in  the  money  market  during  late  months ,  but  we  shall  diseasi 
this  more  at  large  on  a  future  occasion. 


*^* * -^- '  ■" -    . --  ■  -^, — ^ ,.^ ,-^_^ _ 


RAILROAD  EARNINGS   FOR  AUGUST   AND   FOR  TIE  NINE  lONTlS  HH 

JANUARY  1  TO  SEPTEHBER  L 

Our  usual  table  of  monthly  railroad   earnings  is  now  complete  sod 
given  b^low. 

It  will  be  observed  on  reference  to  the  table  following,  that  there  is  sow 
for  the  first  time  since  the  beginning  of  the  year  a  decided  decrease  in  the 
earnings  of  several  of  the  principal  roads  for  the  month,  compared  with 
the  same  month  in  1868.  The  monthly  statements  have  heretofore 
shown  an  almost  uniform  increase  over  the  corresponding  months  of  the 
previous  year,  aud  there  seem  to  be  special  reasons,  why  this  steadj 
improvement  has  given  place  «n  the  month  of  August,  to  a  falling  offio 
earnings  compared  with  August  1868. 

There  have  been  two  principal  causes  for  this  decrease  in  earnings: 
first,  the  ruinous  competition  in  freights  among  the  se/eral  through  lioe 
to  the  West,  which  has  carried  prices  of  transportation  down  to  figares 
which  did  not  pay  the  cost  of  the  service ;  and,  secondly,  the  smaller 
grain  movement  at  the  West  in  August,  which  has  had  an  important  effect 
upon  the  traffic  of  the  Western  roads.  These  causes  are  evidently  tem- 
porary, as  the  freight  war  can  not  he  long  continued,  and  the  grain  crop 
at  the  West  is  large  and  muU  come  to  market  sooner  or  later. 

In  the  case  of  the  Chicago  and  Northwestern  road,  which  shows  a  very 
considerable  decrease  in  earnings,  there  has  been  the  additional  circoah 
stance,  that,  with  the  completion  of  the  Union  Pacific  Road,  the  trans- 
portation of  material  for  construction  has  ceased,  and  aa  immense  qoaa- 
tities  of  that  material  were  carried  over  the  Northwest  roads,  a  very  laige 
item  of  the  freight  traffic  of  the  latter  in  1868  has  been  diaoontiooed. 
As  regards  the  report  of  the  Chicago  and  Kook  Island  Road  bi 
August,  1868,  the  figures  issued  from  the  office,  for  comparison,  are  1478,- 


1869]  BAILROAD  EARKIHOS.  285 

660,  wbile  the  total  earnings  for  AujO^ust,  1868,  as  published  officially  in 
the  last  annual  report,  were  $568,880,  we  assume  that  the  official  figures 
must  be  correct,  and  therefore  use  them  in  the  table  below. 

Of  the  Lake  Shore  and  Michigan  Southern  Railway  earnings  twostate* 
ments  are  published,  one  in  a  Chicago  paper  as  follows: 

**The  coDoparative  earnings  for  tho  raonth  of  August  were : 

(na>  TO  oEOoxoo.) 

Pafsengers 1*203,403  33        fSO:)  A90  07 

Freight    4»7,1»3  49  418,857  011 

Miice  lancoxiB 48,1^0  77  41,400  00 

Total $887,817  48       $883,777  18' 

— ^The  Other,  published  in  New  York,  gives  the  figures  for  186R,  as 
t97l,772.  This  discrepancy  probably  arises  from  some  confusion  in 
reports  incident  to  the  late  consolidation  ;  and  we  take  the  Chicago 
statement,  as  it  is  given  in  detail  and  therefore  leas  likely  to  be  erroneous. 
The  Cleveland,  Columbus,  Cincinnati  and  Indianapolis  Company  now 
report  their  earnings  for  the  first  time. 

XABKoroB  rtm  auqvwt, 

1869. 

Chicago  A  A*ton $501,6M 

Chicago  A  Northweatern 1,032,»'13 

Chicaijo,  RockIsl«nd<»  ^'nclfle 4b0,FO» 

CleveUod,  <*ol.,  Cina  AladiaDapolls 341,788 

Illinois  Central l^t^iH 

"Lake   here  &  Michigan  Southern 88S.7T7 

Marietta  A  CI  nclnnaU VM,9SA 

Michigan  Central 8i8,B«9 

MUwuttke^  A  ttt.  Pattl ••...       695,868 

Ohio  A  M'aalBBippi 275,200 

8t.  Loots,  Alton  &  Tern  Haato 178,628 

Toledo,  WabMh  A  H  eaiern 450,246 

$5,888^1  $6,267,763    $iOS,8U9    $474,781 

The  total  earnings  for  the  nine  months  from  January  1  to  August  31, 
for  the  current  and  previous  years  were  as  follows  ;  the  Lake  Shore  and 
Michigan  Southern  Road  is  necessarily  omitted,  as  no  comparison  with  the 
previous  year  can  be  made  since  the  consolidation  : 

XAHKINOB  l^OX  JAirDABT  1  TO  1.UQU8T  81 . 

18f«.  1868.  Inc.              Dec 

Chicago  and  Alton $2,962,028  $2,747,480  $m,5n8 

Chicago  A  Northwestern 8,668,294  b,194,»a3  473.801 

OhlcaKO,  Bock  Island  ^k  Pacific 8,y61,809  S,7!r7,844  453,466 

minoiBCeotral.... 6,219.702  4,649.145  670,657 

Marietta  *  Clnclonatt .        876,838  800,969  7^830 

Michigan  Central 2,961,884  2,799,524  16-2,860 

Milwaakee  A  bt.  Panl 4,087.702  S,43(»,84')  667,862 

Ohio  A  MiBBlBBlppi 1,741,718  1,866,091  ....        128,818 

St.  LonlB,  Alton  A  Terro  Uinte. 1,249,478  1,185,074  67,404 

Toledo,  WAbaah  A  WcBtera 2,686,830  2,410,886  2»,^44            . 

Total $3S.6i8,8Sa    $30,880,689     $2,890,061     $123,818 


1868. 

Inc. 

Tec. 

$668,100 

9*  ■  •  • 

$66,484 
219,127 

1,251.940 

•  •  •  • 

6t>8,880 

.  • . . 

87,480 

271,425 

70,3?S 

•  •  •  • 

763,779 

80,649 

•  •  •  • 

8;^7,8i7 

951) 

•  •  •  • 

l'26,r»i 

9,bS2 

•  «  • 

802.942 

•  *  •   ■ 

89,378 

62A683 

8,660 

2&7,5ft7 

•  •  •  • 

12,a37 

201,696 

•  • 

86,068 

484,208 

•  •  •  • 

33,9ti9 

a  «  • 

•  •  • 


•  Xrle  to  Chicago. 


^86  ci'tiBiexoT — REsutt^Tioir.  [OcUie^ 

CnBBENCI— RESniPTIflN. 

6Y  victor  CONSlBSRAirr. 

In  1839,  Bussia  suffered,  as  the  United  States  Is  now  suffering,  from 
the  evils  of  a  depreciated  and  unstable  paper  currency,  the  value  of  which, 
as  compared  with  specie^  was  as  350  to  100 ;  that  is,  it  required  3|  jHiper 
roubles  to  buy  one  of  specie.  Notwithstanding  this  great  depredaticm, 
Russia  effected  a  reform  in  her  debased  currency,  returning  to  a  r^Iar 
and  fixed  monetary  system  in  twenty- four  hours^  and  that  without  wrong- 
ing any  one  in  or  out  of  the  Empire.  This  is  a  fact  of  history.  To  effect 
this  financial  operation,  Russia  was  obliged  to  borrow  ten  or  twelve  mil- 
iion  dollars  in  specie  of  the  Bank  of  France.  The  govemm^t  of  the 
United  States  has  had  for  two  years  past,  from  six  to  eight  times  thit 
amount  1>  ing  idle  in  its  vaults ;  and  during  all  this  time,  with  all  the 
discussions  on  resumption,  nothing  has  been  accomplialied,  and  no  one 
single  point  has  been  agreed  upon.  I  will  not  undertake  to  critidse  the 
financial  wisdom  of  the  American  people :  but  I,  as  an  adopted  citixen^ 
which  authorizes  me  to  speak  as  one  of  the  people — ^must  confess  that 
we  have  shown  no  great  wisdom  in  this  particular  conjuncture. 

The  present  currency  is  a  scourge.  It  operates  as  a  monetary  disease, 
affecting  all  the  commercial  and  industrial  interests  of  the  coantry.  The 
whole  economic  mechanism  is  subject  to  the  greatest  uncertainty.  No 
one  can  foresee  what  will  be  the  result  in  four,  six,  or  eight  months,  of 
investments  made  to-day,  or  of  enterprises  undertaken.  And  no  sale 
t^lculations  can  be  made  without  stability  and  fixedness  in  the  unit  of 
value  called  the  dollar.  If  the  dollar  is  not  a  fixed  value,  no  one  can 
know  what  real  value  a  given  amount  of  capital  will  represent  six  months 
hence.  I  may  realize  an  apparent  profit  on  my  inve8tments,.or  from 
my  business,  but  it  may  turn  out  to  be  a  loss  instead  of  a  gain. 

Owing  to  this  instability  of  the  money  value,  which  measures  all 
others — an  instability  which  prevents  any  one  foreseeing  what  $100  will 
be  worth  in  six  months^  or  even  six  weeks — regular  business  suffers, 
while  a  wide  field  is  thrown  open  to  speculation,  and  financial  and  com- 
mercial  gambling. 

The  sole  remedy  is  the  return  to  a  regular  and  stable  monetary  sys- 
tem. Let  the  example  of  Russia  be  followed,  unless  something  better 
can  be  done.  Can  anything  better  be  done?  I  answer,  Yes;  and  some- 
thing tar  better.  As  we  can  improve  on  her  processes,  I  will  not  enter 
into  an  explanation  of  them. 

1  affirm  that  by  a  simple  act  of  Congress  the  following  results  may  be 
obtained:  1.  Return  without  wronging  any  interest  to  a  regular  mone- 
tary system ;  that  is  to  say,  to  a  fixed  and  stable  currency.    2.  Effects 


1869]  OUBRBVOr— RESUMPTION.  287 

benefioent  reform,  which  will  economize,  and  hence  save  to  the  country 
the  expense  of  the  hundreds  of  millions  of  gold  and  silver  which  it  would 
be  necessary  to  use  to  return  to  and  re  establish  the  specie  currency. 

If  it  could  be  clearly  demonstrated  to  our  legislators  that  the  green- 
back dollar  could  ba  raised  in  value  to  that  of  the  specie  dollar,  or  to 
par,  and  maintained  invariably  at  this  value,  provided  that  they,  on 
their  side^  would  pass  a  law  abolishing  the  use  of  gold  and  silver,  as  a 
carrency,  and  the  circulation  of  these  metals  as  money,  I  ask,  would 
they  consent  to  such  a  measure  and  take  the  initiative  in  a  fundamental 
monetary  reform  ? 

Let  us  remark  that  if  the  country,  wishing  to  return  to  a  regular  and 
stable  currency,  imagine  that  it  is  necessary  to  go  back  to  the  old  specie 
money,  this  fancy  will  cost  it  the  several  hundreds  of  millions  of  gold  and 
silver  which  it  will  be  necessary  for  the  metallic  currency  that  is  to  replace 
the  greenback  circulation.  It  is  hardly  probable  that  it  will  return  to  the 
old  State  Bank  system,  with  its  alternately  expanding  and  contracting 
issues  of  paper  money,  so  that  but  three  alternatives  are  open  before  it ;  1 . 
To  retain  the  present  greenback  currency  as  it  is,  with  its  fluctuations.  2. 
To  return  to  a  pure  metalic  currency.  3.  To  discover  some  new  princi pie 
on  which  to, base  the  national  currency,  and  adopt  it.  It  is  this  latter 
alternative  which  I  propose,  and  I  explain  the  principle  which  is  to  serve 
as  a  basis  for  it : 

It  wolild  require  at  least  $600,000,000  in  gold  and  silver  to  establi-^h 
a  specie  currency.  How  is  this  vast  sum  to  be  obtained  but  by  taxatinn, 
by  adding  new  burdens  to  those  already  imposed  on  the  people  1  If  a 
dollar  of  the  currency  I  propose  will  always  be  worth  a  dollar  in  gold, 
in  what  respect  is  a  bit  of  metal  preferable — to  effect  the  exchange  of 
values — to  paper?  I  will  remark  here  that  the  material  for  the  new 
currency  will  be  paper;  it  is  easy  to  handle  and  costs  nothing.  Extern- 
ally, this  currency  will  resemble  the  greenbacks ;  but,  based  as  it  wil)  Se 
on  adiderent  principle,  it  will  be  intrinsically  a  new  and  different  mone- 
tary system.  For  the  purpose  of  a  circulating  medium,  the  metal •>  are 
far  inf^^rior  to  paper;  this  is  so  well  known  that  it  is  unnecessary  to 
dwell  upon  it. 

If  then,  the  permancy  in  value  of  the  paper  dollar  can  be  secured,  there 
can  be  no  objection  whatever  to  using  paper  as  the  material  out  of  which 
to  make  the  national  currency.  To  attain  the  great  end  in  view — namely, 
to  create  a  fixed  and  stable  currency,  using  the  cheapest  and  best  material 
— Congress  has  but  to  pass  the  following  law,  comprising  three  articles : 
1st.  Hereafter,  gold  and  silver  will  not  be  used  for  money ;  and  coin 
made  of  these  metals  will  not  be  recognized  as  a  legal  tender.  The 
national  currency  will  be  of  paper  (or  any  cheaper  and  better  material  that 

4 


288  CURRKNCT — RKSUMPTIOK.  [Oc/o6ff, 

can  be  discovered)  2d.  The  National  Government  will  alone  create  and 
issue  the  currencj  of  the  country.  No  individual  or  corporation  viU  be 
permitted  to  create  or  issue  a  circulating  medium,  or  any  representative 
of  it,  like  our  bank  notes.  3d.  The  Secretary  of  the  Treasury  will  at  all 
times,  first,  deliver  to  any  person  wishing  the  national  currency  a  dollar 
of  the  same,  on  his  depositing  23  8-10  Troy  grains  of  gold  (the  amount 
now  contained  in  a  dollar)  or  its  equivalent  in  silver;  second,  witfadrav 
from  circulation  an  amount  of  national  currency  necessary  to  keep  it  at 
all  times  at  par — that  is,  diminish  it  whenever  the  metals  rise  in  ^tloe 
above  the  point  fixed  as  their  standard  price. 

If  this  simple  law  is  passed,  a  monetary  reform  will  be  effected,  sod  a 
regular  and  stable  currency  will  ]be  established.  The  country  will  U 
delivered  from  the  evils  of  an  ever-fluctuating  and  uncertain  circulating 
medium — in  other  words,  from  a  measure  of  value  which  has  no  fixedness 
of  value  of  its  own.  As  soon  as  this  law  is  promulgated,  and  gold,  is 
consequence,  is  refused  at  the  Custom  House  and  in  payment  of  ail 
national  dues — ^the  issues  of  the  national  currency  being  in  the  handa  ot 
the  Government  alone,  and  withdrawn  from  the  banks — ^it  would  at  osce 
rise  in  value,  and  the  dollar  would  attain  to  par  for  23  8-10  Troy  grains 
of  gold,  at  which  point  it  could  be  maintained  with  very  slight  fluctuations. 

There  is  a  question  which  will  probably  be  asked  by  the  reader,  and 
which  I  must  answer  before  going  further ;  **  How  is  it  that  you  take  gold 
as  the  standard  of  value  of  your  currency,  and  the  regulatmg  principle 
of  its  issues,  and  yet  reject  it  as  a  circulating  medium  1  This  appears  i 
strange  anomaly."  I  answer  :  There  must  be  some  standard  and  guide 
by  which  to  regulate  the  issues  of  the  new  currency — of  the  amount  to  be 
put  and  kept  in  circulation.  A  paper  currency  can  be  increased  iu6ei- 
nitely  in  amount ;  there  is  nothing  to  prevent  it,  as  there  is  with  gold; 
while  the  wisdom  of  legislators,  however  great,  cannot  determine  so 
complex  a  question  as  the  amount  of  currency  to  bo  i«»ued  and  kepi  b 
circulation.  As  a  consequence,  some  product  or  article  which  ia  univer- 
sally in  demand,  and  the  value  of  which  does  not  fluctuate,  or  at  least  bu: 
slightly,  must  bo  taken  and  used  as  this  standard  and  guide.  Gold  is  th^ 
article.  Iron  or  lead,  wheat  or  cotton,  would  ans^rer  the  same  purpose, 
provided  they  existed  permanently  in  nearly  the  same  quantities,  and 
there  was  the  same  uniform  demand  for  them  as  for  gold  over  the  earth, 
so  that  their  value  was  everywhere  as  regular  and  stable.  If  too  mncfa 
currency  were  put  in  circulation,  gold  would  rise  in  price,  as  do  all  article* 
— flour,  cotton,  land,  6zq — but  more  promptly,  as  it  feels  at  once  all  change 
in  the  market.  The  rise,  even  of  i  per  100,  would  be  an  indication  w 
the  Secretary  of  the  Treasury  to  contract.  On  the  other  hand,  if  too 
little  currency  were  in  circulation,  the  price  of  gold  would  ML  below  the 


18B9]  CtTRBfiNCY — RBStJMj»TlO»r.  2^ 

par  value  of  the  same,  which  would  indicate  the  necessifcy  of  increasing 
thd  currency.  By  this  means,  instead  of  using  vast  quantitie  ^  •  >t  the  most 
expensiTe  metals  for  a  circulating  medium,  the  same  result  could  be 
obtained  by  taking  its  value  in  the  markets  of  the  country,  and  using  it 
as  a  gauge  and  indicator — as  a  standard  to  which  to  conform. 

The  economic  principle  on  which  this  reform  is  based,  may  be  compre- 
hinded  by  any  market-man.  He  knows  that  the  scarcity  of  any  product 
in  the  market  renders  it  dear,  while  its  abundance  causes  it  to  fall  in 
prict.  He  can  deduce  the  conclusion  that  if  some  one  can  monoplize 
and  hold  any  one  product,  he  can  raise  or  lower  its  price  at  will,  and  as 
a  consequence,  regulate  and  fix  it  at  any  given  point  he  pleases.  Now, 
under  the  power  conferred  by  the  above  law,  the  Government,  being 
alone  invested  with  the  right  of  creating  and  issuing  the  currency,  is  in 
the  position  of  the  monopolist  of  some  product.  The  Government  can 
regulate  the  currency  at  will,  expanding  or  contracting  it,  and  in  so  doin^ 
raise  or  lower  the  price  of  all  things,  gold  included.  It  could  make  one 
dollar  in  paper  worth  two  in  gold — that  is  worth  47  6-10  Troy  grains 
of  this  metal,  or  it  could  make  it  worth  but  fifly  cents  in  gold.  To  do 
this,  it  would,  in  the  former  case,  have  only  to  contract  the  currency 
one-half,  and  in  the  latter  to  double  it. 

To  form  a  clear  idea  on  the  subject,  let  us  suppose  that  the  business 
of  this  country  requires  a  circulating  medium  of  five  hundred  millions, 
and  that  this  amount  of  currency  is  in  circulation.  In  this  case,  the  dollar 
of  currency  will  be  at  par;  that  is,  will  be  worth,  or  will  buy,  23  8-10 
Troy  grains  of  gold.  Now,  if  the  amount  is  increased  or  diminished, 
the  currency  will  rise  or  fall.  If  increased  five  millions,  it  will  fall  1  per 
100;  if  diminished,  five  millions,  it  will  rise  1  per  100.  This  will  be 
the  inevitable  effect  of  expansion  and  contraction. 

The  Government  can,  consequently,  regulate  the  Value  of  the  currency 
by  determining  the  amount  put  in  circulation ;  and  hence,  can  secure  the 
regularity  and  stability  of  the  value  of  its  dollar,  or  the  monetary  unit.  If 
the  business  of  the  country  requires  more  money  than  there  is  in  circula- 
tion, the  paper  dollar  will  begin  to  be  worth  more  than  the  amount  of  gold 
fixed  as  its  legal  value.  As  an  effect  gold  and  silver  bullion  will  flow 
into  the  Treasury  to  be  exchanged  for  currency.  The  difference  in  price 
being  being  in  favor  of  the  latter,  bullion  will  be  exchanged  for  it,  exactly 
as  it  now  is  for  coined  money  at  the  mints.  If  on  the  other  hand,  a 
falling  off  in  the  business  of  the  country  requires  less  currency,  causing 
it  to  decline  below  par — there  being  a  redundancy — the  percentage  of 
the  decline  would  indicate  infallibly  to  the  Treasury  the  amount  of  cur- 
rency which  it  should  withdraw  from  circulation  in  order  to  bring  it  up 
again  to  par  and  maintain  it  there. 


290  ouRRuroT — rksumptior.  [Octokr, 

Gold  and  Bilver  are,  under  absolute  and  despotic  GoTemmeoU,  ti» 
best  materials  for  a  currencj,  and  for  the  reason  that  the  employment  of 
these  metals  prerents  kings  and  other  rulers  from  increasing  or  dimin- 
ishing arbitrarily  the  amount  of  currenej  in  circulation,  and  tlienlij 
debasing  it,  and  taking  from  it  its  stability  and  fixedness.  Gold  aod 
silver  furnished  by  nature,  take  from  absolute  rulers  the  power  of  cre- 
ating money,  and  leave  them  only  that  of  coining  it— ^f  putting  the  Got- 
emment  stamp  upon  it. 

When  the  opinions  and  business  habits  of  a  nation  require  that  moBej 
should  have  an  intrinsic  value  in  itself  (which  is  the  case  with  gold  asd 
silver'  which  are  valuable  metals),  kings  and  princes  are  restrained  from 
creating  a  currency  out  of  materials  of  no  or  very  little  value.  Coimg! 
is  not  the  creation  of  a  monetary  value,  but  the  authentication  simplj^f 
the  weight  and  alloy  of  the  metals  used — ^that  is  of  the  intrinsic  valaeof 
of  the  piece  of  gold  or  silver  of  which  the  money  is  made.  By  this  meta, 
the  monetary  value  of  the  currency  is  combined  with  the  material  of 
which  it  is  composed,  and  finds  in  its  metalic  substance  the  meuurccf 
its  value. 

It  is  easy  to  see  that  the  guaranty  thus  offered  to  the  people  sgaioat  the 
rapacity  of  rulers  is  based  wholy  on  the  principle  of  the  equality  of  th« 
cost  of  money  with  its  value.  But,  so  soon  as  a  people  is  free,  and  ha 
the  wisdom  requisite  to  govern  itself,  who  should  it  pay  the  cost  of  this 
guaranty — a  guaranty  against  itself — of  which  there  is  no  longer  any  need 
To  continue  to  employ,  under  such  circumstances,  a  currency  which  cu>' 
the  entire  value  it  represents,  can  only  be  the  effect  of  the  influence  « 
old  ideas,  the  falseness  of  which  has  not  been  discovered  and  exploded, 
and  which,  in  consequence  are  retained.  When  a  people  governs  itseli'. 
all  it  has  to  do  is  to  acquire  knowledge  sufficient  to  adapt  its  laws  aai 
institutions  to  tts  true  intei'ests.  If,  instead  of  employing  for  its  correscT 
a  material  as  cheap  as  paper,  and  which  is  more  convenient  than  gold  or 
silver,  it  keeps  in  the  rut  of  routine,  and  uses  those  expensive  meU^it 
confesses  tacitly  its  ignorance  in  economic  matters.  The  AmericsQ 
people  will  be  rightly  accused  of  this  ignorance,  if,  with  the  experience 
it  has  had  in  the  greenback  currency,  it  does  not  comprehend  the  tiieorT 
of  a  cheap  circulating  medium,  made  of  paper,  and  baaed  on  principles 
which  will  secure  entire  stability  and  regularity  to  it. 

''  Agreed,  it  may  be  said ;  let  us  accept  the  idea  of  a  cheap  natk>o>^ 
currency,  costing,  so  to  say,  nothing,  which  is  kept  al  par  and  its  sUbiL'tj 
secured.  The  sudden  return  to  such  a  currency,  however  desirable  v-^ 
itself,  would  be  a  severe  blow  to  all  having  debts,  contracted  under  the 
old  system  to  pay."  I  answer :  Nothing  is  more  true ;  but  what  voold 
prevent  the  intr<yluction  of  a  clause  into  the  law  which  would  protect^ 


1869]  cuaRBHOT — resumpiiok.  291 

interests  of  debtors  and  serre  the  cause  of  strict  jostice  ?  When  Russia 
bridged  over  the  gulf  which  separated  the  paper  from  the  silver  rouble*— 
thedifTerense  between  350  and  100 — she  decreed  that  all  debts  anteriorly 
contracted  should  be  paid  at  their  real,  not  nominal,  yalue— that  is,  in 
paper,  not  silver,  roubles.  The  United  States  could  follow  the  same 
policj.  All  debts  contracted  in  Greenbacks  prior  to  the  passage  of  the 
lav  in  question  would  be  paid  in  Greenbacks,  or  their  average  value 
during  the  year  preceding  the  passage  of  the  law.  No  one  could  com* 
plain  of  the  equity  of  such  a  provision. 

As  regards  financial  reform,  and  a  true  financial  policy,  the  American 
mind  has  been  led  astray  by  a  false  conception  of  the  meaning  of  a 
single  word — ^the  word  Dollar.  The  word,  in  its  old,  its  true  and  exact 
meaning,  expressed  the  value  of  a  certain  amount  of  gold  (that  con- 
tained in  a  dollar).  The  Dollar  signified,  and  still  signifies  this,  and 
nothing  more.  At  the  present  day,  the  American  people  have  contracted* 
by  the  use  of  greenbacks,  the  habit  of  giving  the  name  Dollar  to  the 
value  of  a  constantly  fluctuating  piece  of  paper,  which  has  never  been 
a  Dollar,  and  never  will  be  one  until  it  is  brought  up  to  par  with  gold : 
that  is,  is  made  worth  23  8- 10  Troy  grains  of  gold,  and  kept  there. 

If  this  distinction  had  been  clearly  established  between  a  name  and 
a  thing,  much  of  the  confusion  which  reigns  in  the  public  mind  on  cur- 
rency questions  would  have  been  prevented.  It  would  have  been  said  : 
"  If  Congress  by  wise  legislation  could  bring  the  country  back  from  a 
currency  worth  but  about  75  per  100  of  gold,  to  one  at  par,  making  a 
greenback  dollar  worth  a  real  dollar,  natural  debts  contracted  in  green- 
backs should  be  paid  at  the  Value  of  greenbacks,  that  is,  three  roal 
dollars  would  pay  four  greenback  dollars.  The  same  piinciple  woidd 
regulate  the  payment  of  our  National  Debt,  and  put  an  end  to  the 
controversies  respecting  its  payment  in  gold  or  in  greenbacks." 

Whatever  may  be  the  terms  of  the  law  relating  to  the  loans  contracted 
hy  the  United  States,  it  is  clear  that  whenever  the  Government  sold  a 
bond  of  $1,000,  with  the  stipulation  of  its  payment  at  maturity,  it  waa 
1,000  dollars  that  it  expected  to  pay,  promised  to  pay,  and,  in  common 
honesty,  is  bound  to  pay.  Whether  the  $1,000  are  made  of  gold,  of 
paper,  or  of  any  other  substance,  is  of  no  consequence.  The  essential 
point  is  that  the  value  which  it  is  to  give  to  pay  off  a  bond  of  $1,000 
be  really  1,000  dollars.  The  material,  no  more  than  the  name  of  the 
thing  to  be  given  to  settle  the  contract,  is  of  any  legal  importance ; 
the  legality  consists  in  the  value  of  the  thing  given.  When  a  dollar  is 
promised,  a  dollar  must  be  paid,  whether  made  of  gold,  silver,  or 
paper.     There  is  no  alternative  between  this  and  a  breach  of  faith. 

It  is  a  piece  of  knavery  to  pretend  that  the  National  Debt  can  be 


2&2  cuRBBNCT — BESUionoK.  [Octokt^ 

justly  paid  in  a  depreciated  currency — in  greenbacksi  vhidi  may  notbe 
worth  50  cents  on  the  dollar — under  the  pretext  that  the  grecnbtck 
bears  on  its  face  the  word  dollar,  printed  iu  large  letters.  On  the  other 
hand,  it  is  sheer  nonsense  to  oppose  the  payment  of  a  debt  io  a  na^onil 
papsr  currency,  provided  the  currency  is  raised  to,  and  kept  at,  the 
atandard  value  of  specie. 

Another  fallacy  is  to  suppose  that  the  monetary  capital  or  monetvy 
toud  of  a  country  can  be  increased  by  new  emissions  of  curreney.  Let 
us  suppose  that  the  amount  in  circulation  is  such  that  the  paper  dolkr 
answers. to  its  name,  and  is  worth  a  dollar.  If,  under  such  circomstanoef, 
the  amount  of  currency  is  doubled^  the  prices  of  things  will  augmesi 
until  they  are  doubled ;  or,  in  other  words,  the  paper  dollar  will  cease 
to.  be  a  dollar,  and  fall  really  to  the  value  of  Afly  cents.  It  is  conse- 
quently impossible  to  increase,  by  new  issues  of  currency^  the  real  valoe 
and  volume  of  the  monetary  capital^  and  the  effectual  means  of  facili- 
tating the  exchange  of  products. 

It  must  be  clearly  understood,  once  for  all,  that  the  monetary  unit- 
called  with  us  a  dollar,  in  France  a  franc,  in  Prussia  a  thaler — will 
always  be  worth  the  value  of  the  labor  or  efibrt  whicb,^  on  au  average^ 
it  costs  to  obtain  it;,  and  that  by  doubling,  trebling  or  quadrupling  the 
amount  of  circulating  medium,  the  real  value  of  the  muonetary  circular 
tion — of  what  is  the  dollar,  franc^  or  thaler — cannot  be  increased  in  like 
proportion.  On  the  contrary,  the  value  of  the  monetary  unit  will  be 
reduced  in  proportion  to  the  increase  of  the  currency. 

Until  these  elementary  and  simple  truths  are  understood  and  admitted 
as  the  basis  of  the  monetary  question,  the  theory  of  the  science  of 
money,  in  its  application  to  the  present  industrial  and  commercial  state 
of  society,  cannot  be  comprehended.  Before  leaving  my  adopted  coun- 
try, I  hold  it  to  be  a  duty  which  I  owe  to  it — to  the  noble  pioneer  in 
political  justice,  equality  and  liberty  on  the  earth — to  present  brieflj 
what  I  believe  to  be  the  primary  principles  of  a  true  monetary  system, 
and  the  means  by  which — transforming  its  greenback  currency  into  a 
permanent  money — it  will  secure  for  itself  a  stable  currency,  and  liqni" 
date  so  much  of  its  national  debt  as  is  represented  by  its  greenbacks. 

The  leading  points  to  be  borne  in  mind  are:  1.  That  a  paper  car- 
rency,  resting  on  a  true  basis,  is  the  best  circulating  medium  for  a  fr^ 
people  who  possess  the  capacity  of  self  government.  2.  That  nothing 
is  easier  than  to  fix  the  value  of  the  paper  dollar  and  maintain  it  at  par 
value  with  specie.  3.  That  there  is  for  the  people  of  the  United  States 
a  saving  or  a  gain  of  $500,000,000  or  $600,000,000  to  be  made,  and  at 
the  outset,  by  adopting  the  refoim  proposed. 

On  these  three  points  I  challenge  contradiction.  If  any  one  i^iH 
undertake  to  invalidate  the  second  point — which,  if  sustained,  sastaioa 
the  other  two^  stand  ready  to  reply. 


1369]  OdRBSKOT — KS6UMPTI0N.  29S 

P.  S. — Some  friends,  to  whom  I  have  read  the  above^  have  said  : 
"  You  lose  your  time ;  nothing  will  be  done  as  regards  the  currency. 
The  public  is  satisfied  with  the  greenback  ;  it  answers  the  purpose  of  a 
circulating  medium  very  well ;  it  is  not  the  greenback  that  varies  when 
it  appears  to  fall  in  comparison  with  gold  ;  it  ia  gold,  which  the  wants 
of  foreign  trade,  or  manoeuvers  of  the  Exchange,  cause  to  fluctuate ;  the 
price  of  things  is  not  affected  thereby.  No  desire  is  felt  to  bring  paper 
up  to  the  price  of  the  old  dollar,  and  there  are  powerful  interests 
involved  which  are  entirely  opposed  to  any  such  policy." 

Wei],  agreed.  It  is  not  absolutely  necessary  to  bring  the  paper  dol- 
lar back  to  the  value  of  the  old  dollar  to  raise  it  tD  par.  Let  us  leave 
it  as  it  is,  provided  its  present  value  is  adopted  and  is  maintained  fixed- 
ly at  its  actual  rate,  say  100-183,  or  about  three-quarters  of  its  former 
value.  If  gold  and  silver  are,  once  for  all,  set  aside  as  money,  reduced 
to  the  rank  of  ordinary  metals,  and  lefl  to  be  dealt  with  as  such ;  if  the 
privilege  of  creating  or  issuing  money  is  taken  from  all  corporations 
and  individuals,  and  reserved  exclusively  to  the  Government ;  and  if 
the  value  of  the  greenback  is  fixed  at  its  present  rate  of  value,  and  kept 
at  it,  the  reform  which  I  propose  will  be  effect^^id. 

The  all-important  end  to  be  attained  is  to  bring  to  a  close — and  with- 
out expense  to  the  Government,  but  a  saving  to  it — an  unstable  and 
fluctuating  monetary  state,  an  ever-changing  currency,  which  paralyzes 
the  business  of  the  country  by  rendering  unstable  and  uncertain  the 
value  of  its  circulating  medium.  So  long  as  the  question  of  the  resump- 
tion of  specie  payments  continues  to  be  agitated  in  the  confused  manner 
which  it  thus  far  has  been,  the  fear,  either  of  the  rise  or  the  fall  in  value 
of  the  greenback,  will  be  suspended,  like  the  sword  of  Damocles,  over 
the  heads  of  debtors  and  creditors,  and  will  continue  to  offer  a  serious 
obstacle  to  all  regular  business  and  to  a  stable  credit  system.  The 
advocates  of  a  return  to  specie  payments  ought  to  be  able  to  understand 
that  what  is  right  and  legitimate  in  their  demand  is  not  specie  in  itself, 
but  the  regularity  and  fixedness  of  value,  which  are  secured  by  the 
metallic  currency.  On  the  other  hand,  the  advocates  of  the  greenback 
currency  should  comprehend  that  they  cannot  hope  to  see  their  ideas 
triumph  until  the  greenback  (that  is,  a  system  of  paper  money  whose 
value  is  fixed  and  determined)  is  declared  by  law  to  be  the  currency  of 
the  nation,  and  gold  and  silver  are  set  definitely  aside  as  money. 

In  a  word,  the  real  issue  is  not  Specie  versus  Paper,  but  Stability 

vers  IS  Instability  in  the  value  of  the  currency  ot  the  country.     Let  this 

be  clearly  understood  on  both  sides,  and  all  differences  of  opinion,  all 
controversies  relating  to  the  vexed  question  ot  the  currency,  will  be 
promptly  settled,  even  that  of  the  payment  of  the  National  Debt,  which 
can  admit  of  but  two  solutions:  Integral  Payment,  or  National  Defalca- 
tion. 


S94  ooTTOtr  uoTiinurr  Aim  Orof  roB  1869.  [Otteitr, 

COnON  MOFEBKST  iSD  CROP  FOi  !B6M. 

[From  tha  ConunHrUI  ud  Fioaulit]  Chndols,  of  Bi^amba  IB.] 

We  famish  our  readers  to-day  with  our  uin<utl  Bt«tement  of  the  cotton  oop 
of  the  United  States  for  the  yeu  ending  September  1, 1869.  The  Ggnnt  will 
be  fonnd  very  complete,  u  our  returns  hare  been  fuller  than  ever  befbn.  It 
appears  that  the  total  crop  reaches  2,439,089  bales,  while  the  eiporti  hart  ben 
1,448,030  bales,  and  the  home  consumption  908306  balei,  leavmg  a  Kod:  in 
hand  at  the  close  of  the  year  of  13,343  bales.  The  stock  of  cottrai  U  ihc 
interior  towns,  September  1,  1S69,  not  included  In  the  receipts,  is  613  b«l(s, 
against  1,985  bales  last  season.  We  have  also  revised  our  statement  of  tht 
overland  movement  for  last  year,  having  discovered  an  inaccuracy  in  the  pub- 
lished retnms,  as  fully  explained  In  the  Chrokicle  of  April  10  (voL  8,  p^c 
4S5).      The  corrected  fignres  will  be  found  below. 

We  now  bring  forward  oar  tables  showing  the  whole  morement  for  tbe  701. 
The  first  table  indicates  the  stock  at  each  port,  September  1  of  1868  and  180, 
tbe  rec^pts  at  thn  ports  for  each  of  the  last  two  years,  and  the  export  moreaiBii 
fbr  the  past  year  (1868-9)  In  detail,  and  the  totals  for  1667-8. 


rtaeu  «K<"< 


By  the  above  it  will  be  seen  that  the  Mai  reeeipU  at  On  AUantit  and  Gtif 

Shipping  porU  this  year  have  been  2,130,438  bales,  agalnal  2,240^  balM 

last  year.    If  now  we  add  the  shipments  from  Tennessee  and  elBewbere  dind 

to  mann&cturers,  we  have  thq  following  as  the  crop  statement  tor  the  two  jrtx. 

. Ttur  mdiiif  E«P  1 ■ 

Beceipts  at  the  shipping  porU bales.  2,120,«8        !,240JS 

Add  shipments  from  Tennessee,  &c,  direct  to  ntanofac- 
tarers 258,611  271,ni 

Total   2,3T9,0S9         3,5I15W 

Mannfactored  Soath,  not  inclnded  in  above *60JMO  fi.OOD 

Total  coMoncrop  far  ttae  year,  bales S,439,0St     S,CtI>9*t 

■  In  Die  VLrglnli  recrlpU  are  tnclndedSO/nObKlM  likFn  from  PclentiDri for niuD^""^u 
purpoaet,  h  ttalt  lh«  toUl  conaDiiMd  In  the  fiualb  Ihli  yeir  la  »,ini  bals  acdaat  RJU  bala  ■" 

The  result  of  these  Sgures  is  a  total  of  2,489,039  bala  as  the  tn^  of  (b» 
United  StatM  lor  the  year  ending  Angost  81,  1660,  against  2,593,NS  1>^ 


1869]  COTTOK  MOVSMBirr  and  crop  for  1869.  295 

as  the  crop  for  the  previous  year.  It  was  thought,  earlj  in  the  crop  year,  that 
the  overland  movement  direct  to  the  mills  this  season  -was  to  be  largely  in  excess 
of  last  season ;  in  fact,  the  retnms  which  we  obtained  and  made  np  on  the  Ist 
of  January,  showed  that  up  to  that  time  such  was  the  case.  Since  then,  how- 
ever, the  receipts  of  this  description  have  been  comparatively  small.  The  move- 
ment for  each  four  months  of  the  two  years  has  been  as  follows : 

From         From        From  Total 

Bepc.  1  to  Jan.  1  to  Aprl>  20  to  tbe 

Jan.  I.  April  20.     Sept  1.  yenr. 

Overland  ablpments  direct  to  mni9  In  18«^ 1  {<S,(iOO        48,000         17,^<)  258/XIO 

OTcriaud  shlpmentB  dlreob  to  mUU  la  I861-8 109,000  151.00J         ll.OUO  271.000 

As  stated  above,  and  as  the  foregoing  figures  indicate,  we  have  revised  our 
overland  shipments  of  last  year  by  new  returns  obtained,  and  are  able, 
therefore,  to  give  with  accuracy  the  relative  takings  of  our  mills  for  the  two 
years,  which  will  be  found  in  a  subsequent  part  6f  this  report.  Below  we  give 
the  details  of  the  crop  for  the  two  years : 

liOnlslana. 

Exported  from  New  Orleans :  / 1 W8-9. «      4 18C7-8. » 

To  foreli^  ports 619,.'aw  5St,4T7 

To  coastwise  porta 222,8n  100.215 

Stock  at  close  of  year T7(^   848,175  1,059—   688,6S1 

Dedact : 

Received  ftom  Mobile 38.515  67,043 

Received  from  Montgomery 2^  S.fC^O 

Received  ft'om  Florida 747  5,770 

Kncelved  from  Texas 7;376  7,692 

Stock  beginning  of  year 1,950—     48,970  15,256—     99,411 

ToUl  product  for  the  year '7M;205  684;M0 

Alabama* 

Escported  fi*om  Mobile : 

To  foreign  ports 188,154  286.511 

To  eoantwise  ports 81^21  127^243 

To  New  Orleans  ftom  Montgomery 2,878  3,660 

Bumtat  Mobile 812 

Stock  at  close  of  year 1,064—  248,412         2,161—  869,907 

Dedact; 

Receipts  Arom  New  Orleans 15.6S0  .... 

Btock  at  beginning  of  year 2,161—  17,791         8,714—      8,714 

Total  product  for  the  year 380,621  866,198 

Texas. 

Exported  ft-om  Galveston,  ftc, : 

To  foreign  ports 88,.776                        68.596 

To  coastwise  porta 64,605                         49,188 

Stock  at  close  of  year 202—   148.063            166-   117.809 

Dedact: 

Received  fi'om  New  Orleans 100                          .... 

Stock  at  beginning  of  year ISV-        266                        8,283 

Total  product  for  the  year 147,817  U4,666 

Florida. 

Exported  ft*om  Femandlna,  St.  Marks,  Ac. : 

To  foreign  ports 810  .... 

To  coastwise  ports 12,564  88,598 

Stock  at  clote  of  year 18—       8,892  ....—     88,598 

Dedact  stock  at  beginning  of  year.... ...  5 

Total  product  for  year 88,^98 

Georgia. 

Exported  f^om  Savannah : 

To  foreign  ports— Uplands 161,518  253,556 

Sea  Islands 6,021  6,048 

To  coastwise  ports— Uplands 189.989  235,706 

Sea  Islands 5,174  5,246 

Exported  from  Darien,  etc.,  to  Northern  ports 2 

Stock  at  Savannah  at  close  of  year 813—  863,0               696—   501,255 

Deduct : 

Received  f^om  Florid  a— Up' ands 240  4,997 

Sealslands 4,824  666 

Stock  at  beginning  of  year 606—  5,760            683—      6,296 

Total  product  for  year 857,253  406,969 


Erportfd  tion  ChkrlHtoc 


COTTON   HOVKUEMT  AKD   CROP  VOB   18S9. 
■on  lb  C>ro]lna. 


[Octokr, 


T.  »,.».,., 1^1  JU.J.^j. 

'"•""'"  ■•"^SJffiiK;:;:;:;-::;;::::;::;:::;;:;::- 

Bt<Hlk«Ch«l«lonbeglnnUwo(ye«r^VJ(i>"""""":::::: 

1^ 

.„o«.,                                       »«ra.C.roUi„. 

■w- 

TlrstBlB. 

^'l^SjfinparU 

M".s™«ruV' r/iienftim  Ki^«bi«.  »i 

ss^^fiitrjE'i'"'"  ■''"'■■ ''•"""'^■*' 

„ 

'C 

inju 


Total  product  detuled  above  bv  States  for  tlie  jear  endioff  Sept.  1, 

1800. b*lw.  2^,039 

Consumed  In  the  Soath,  not  iocladed  (in  addition  to  the  20,000  taken 

from  Petersburg) 6S,0W 

Total  crop  of  tho  United  SatCB  for  ;ear  ending  Sept.  1, 1869 2,430,0311 

Below  we  give  the  total  crop  each  Tear  aince  I63I  : 
Twrt.  "-•-*.    Turn.  B-i.  ir.  IlilB. 


:;  ^ 
::  Sfl 


ulara  of  which 
auuiiGiA-K: 


1S,083  halea,  the  paiHe- 


If 

ISS;::::::::::::::::;:::::::: 

iic.-nri 

1869]  COTTON  MOYKIIEKT  AND   CROP   70R   1869.  297 

SOITTH  CAKOUKA-Bxported  foreign 8,«^ 

Kxported  domesric  ports 8,81S 

Stock  end  of  year 42—     7,860 

Pediiet  receired  ft-om  Florida i,TVi 

Stockbegliinlogofyeiir 96—     l«7g6 

— -^—      5|454 

Total  Crop  of  Sea  Islands 18,682 

The  crop  of  Sea  Island  daring  fonner  years  has  been  as  follows : 


lX>5-96 bales.  44,!tl2 

iSyWiT 45,814 

18j7-58 40,566 


1^8-99 bales.  47^ 

t859-60 46,619 

1860-68 No  record. 


lA6<Mr7 J)«;lei.  9t^Wi 

1867-88 a.??5 

1866-69 18,683 


Consumption* 

The  consumption  the  past  year  shows  a  slight  falling  off,  notwithstanding 
the  mills  have  increased  their  stock  about  80,000  bales.  Our  usual  summary, 
showing  the  result  for  the  year,  North  and  South,  is  as  follows : 

Total  crop  of  the  United  states  as  above  stated 2,439,099 

Stock  on  hand  commencement  of  year  (Septembel  1, 1866) : 

At  Northern  ports 80,308  _ 

At  Boathern  ports 7,887—  88,180 

Total  supply  dnrlng  year  ending  September  1, 1860 2<4T7,ieS 

Of  this  snpp  y  there  has  been 

Expo*  ted  to  foreiKn  ports  during  the  year 1,448.0BO 

ScDttoCanadaby  railroad  direct  from  the  West ..-. 18.000 

Now  on  hand  (September  1, 1809) : 

At  Northern  ports..... 9,596  

AtSouthem  ports 2,807—   1,478,889 

Total  consnmptton  In  United  States  year  ending  Sept.  1, 1860 bales.      998,8M 

Consamption  in  Soathem  States 80,000 

Leaving  consomptlon  In  Northern  States bales.      916,806 

We  have  been  at  oonsiderable  trouble  to  obtain  a  correct  idea  of  the  stock  now 
held  by  the  mills,  and  find  that,  although  several  of  the  largest  corporations 
are  holding  six,  seven  or  eight  weeks'  supply,  the  great  body  of  the  spinners 
are  lightly  stocked.  The  total  held  by  them,  therefore,  on  the  Ist  of  Septem- 
ber was  less  than  we  supposed,  bdng  about  60,000  bales,  against  80,000  bales 
last  year.  Taking  the  stock,  thai,  on  the  Ist  of  September  at  these  figures,  we 
see  that  the  actual  consumption  of  all  the  mills,  after  deducting  the  increase 
held  tlufl  year  over  last  year  (30,000  bales),  would  be  about  968,000  bales,  against 
983,000  bales  last  year,  leaving  for  the  Northern  mills  about  888,000  bales  against 
900,000  bales  last  year. 

The  new  year  begins  with  a  deficiency  in  the  visible  supply  of  cotton  for  this 
country  and  Europe  to  the  extent  of  380,000  bales  compared  with  the  amount 
on  hand  at  the  same  period  of  last  year.  Hence  to  permit  of  the  same  consump- 
lion  the  coming  season  as  during  the  season  which  has  just  closed,  the  cotton 
production  of  the  world  must  be  increased  to  that  extent.  But  this  year  the  aver- 
age weekly  consumption  of  Great  Britain  has  been  about  8,000  bales  less  than 
during  the  same  period  of  1867-8,  while  the  Continent  and  the  United  States 
liave  probably  together  also  consumed  about  8,000  bales  less  per  week.  If, 
therefore,  the  mills  this  season  return  to  the  consumption  of  1867-8,  300,000 
bales  additional  will  be  needed,  or  in  all  an  increased  production  of  630,000  bales^ 
without  allowing  any  accumulation  of  stock.  We  shall  undoubtedly  be  able  to 
make  good  a  part  of  this  deficiency ;  but  the  extent  of  our  crop  cannot  yet  be 
definitely  stated. 

Exports. 

In  the  first  table  given  in  this  report  will  be  found  the  foreign  exports  the 
past  year  from  each  port  to  Great  Britain,  France  and  other  ports,  stated  sepa* 


298  COTTON  MOVSUEXT  AMD  CROP  roK  1869.  [Ottoia, 

istelj,  ae  well  m  the  total  to  tJl  the  porta.    Below  we  give  the  total  lordgt 
«iports  for  six  jean  foe  compftrieoii : 

Total  BxporM  of  OotMa  to  ForelKn  Porta  for  Six  Tean. 


SH.IM        28.1^        BT.5CT 
VBita       MR^«       tMMl 


:ToWifromOMii.8 s.mA78  s,m,3«  i,im,«j  i.56a.TST  iftita  iMUm 

A  wiali  has  been  expreased  bj  some  of  our  nadeiH  that  we  ahoold  give  «  de- 
tailed statement  of  the  eiporlB  fh>m  each  port  dnrini;  the  past  year,  and  m 
have  therefbre  prepared  the  following: 

. Eljwrtea  from , 


1,«H     SSJM    M»     Uv-'a 


P1Uiii-l>ni«l*.... 

MMiS.'.'.'.'.'.*.";"! 
B«l»rBoV.  ■■■,'."■," 
Bt.  PelenbvrB... 
UeMngf anil !!'.!! 


Total tttfat  ws^n  wjm    i 

•  UDdor  ttali  hud.  "  Otber  Parti."  n  Ii>t«  InelndAd 
LUriTOol  unit  189  hain  to  Britlali  ProTlncn.    From  PI 


The  following  are  the  total  gross  recapta  of  cotton  at  New  ToA,  Bomb, 
Philadelphia  and  Baltimore  for  each  of  the  last  two  yean  ending  Septenbtf  1 ; 


rBU.D 

■Lnni 

"" 

-" 

t    iM»4.  {  igci-a.  |i»«.w4 

1     ,m 

7.S10 

i;w 

Ul 

I   "£ 

■M 

».» 

lUU 

•« 

fs 

H 

■m 

!  '*:'.!* 

"?■: 

■^ 

.^ 

riWMal   BMl  I   IB.1SL  I  tw»  I  «g 


1869] 


TBB  IfHBAT  TRADE   Or   ORKAT  BRITAIK. 


299 


To  complete  onr  record,  -we  give  below  m  table  showinfir  the  pri<9B  of  middlings 
uplands  at  New  York  and  Liverpool  on  Friday  of  each  week  daring  the  last  two 


years 


Sept.  4 

••  18 
•*   25 

Oct.  2 

..     9 

••  1« 
••  2\ 
"   30 

KOT. 

♦•  « 
"  IS 

"  27 

Dec.  4 
"  11 
•*  18 
«  24 
•♦  81 
1869« 

Jsn. 
"     8 
"  15 
"  22 
••  29 

Feb.  5 

••  19 


Prices  of  Cotton  at  Neir  York  and  lilTorpool  t¥ro  Tears. 


6. 
18. 
». 
37. 

4. 
I'. 
18. 
35. 

1*. 

8. 
15. 
22. 
*«9. 

6. 
13. 
20. 

2:. 


. 1868-9 » 

New  L>ver- 
York.  pool. 

ere.        d. 


*fi8. 

8.. 
10., 
17.. 
«4.. 
81.. 

7.. 
14.. 
21.. 


29X 
2flH 

^H 

g^ 
25K 
25 
^H 

25K 

24H 

25 
25}i 
25 
26 


SB 
269( 


lOH 

lOJi 

lOH 
IWi 

105^ 
11 

loy 

10$ 

11$ 

10!^ 
10J< 

K^ 

lOX 


11 

12K 
llX 


. 1867-8 . 

Now  Liver- 

TorK.  pool. 

c's.         d. 


27 
25 

WK 

2i 

30 

18 

19 

20 

19 
19 
18 

}i« 

17 
15X 

S5 


^*^«^«V«tf«#M 


10 

8)i 
8>< 

7X 
7>< 


2>^ 

lOH 


'SO. 

Mar.  5 
"  12 
"  19 
"  26 

Apr.  2 
.•  9 
"  16 

"   23 
«« 

Mny 

"     7 
.*   j4 

••  21 
••   28 

Jane  4 
••  11 
•*  18 
"  25 

jQly  2 
••    9 

••  10 

••  28 

••  80 
Aug.  6 

••  IS 

••  20 

••  27 


*66. 
28.. 
6.. 
13.. 
20.. 
27., 

S.. 
10.. 
17.. 
24.. 
80.. 

1.. 

8.. 
15.. 
22.. 
29., 

5.. 
12.. 
19.. 
26.. 

8.. 
10.. 
17.. 
24., 
81.. 

7. 
14., 
il.. 
28. 


, 1868-9 — » 

^'cw   liver- 
York,  pool. 
ots.       d. 


29X 

29 

28^ 

28)^ 

28V 

2»H 
2Si< 
2HX 

SX 
28M 


28y 

28V 
28V 

2av 

81 H 
88 

84 

S^ 
8SH 

83M 
85 

34V 


12 
12 
12J^ 

MX 

•    •   •   • 

IIX 

n^ 

IIH 

ll« 

llV 


. 1867-8 — » 

^ew  Liver- 
York,  pool. 

C^B.  d. 


12  K 

12H 

12« 
12V 
12« 
18)tf 
ISV 


22 

25 

24V 

24V 

26 

29 

90 

SOX 

82X 

«  •  •  • 

82 
82 
81 
81 

29 
81 

||H 

81 

SO 

99 

29K 

SO 

80M 


lOX 

10H 
12>^ 

•  •  • 

12J^ 

12^ 

■  ■  •  • 

12W 

12>? 

UK 
UK 

S 

IIH 

UK 
UK 
iiK 
ioj<; 

9K 

9K 
10 

lov 

11 


THE  WHEAT  TRADE   OF  GREAT  BRITAIN. 

[From  tbe  London  Ckffrespondenoe  of  the  *'Cocnmeroial  and  Finaooial  Gbronicle."] 
We  have  DOW  reached  the  close  of  a  protracted  an!  lemarkable  wheat  (easoDy 
ftnd  a  brief  retrospect  may  not  be  uoappropriate  or  uniDtereslioj;.  The  peaaon 
cofnmenced  at  an  uDueaally  early  period,  owing  to  the  forwar  I  state  of  the  crope  in 
1868.  lo  the  early  part  of  May,  last  year,  the  average  price  of  English  wheat 
was  aa  high  aa  748  7d  per  quarter  ;  hot  the  pro9p<fCt  of  an  early  and  abundant 
crep,  produced,  from  that  period  to  the  time  when  the  hprveat  had  crromenced,  a 
■t^ady  downward  movement  in  prices.  The  result  was  Utat  by  (he  17th  of  July, 
there  had  been  a  decline  of  93.  4d.,  or  to  659.  per  quarter.  When  the  unexampled 
abanjaoce  of  the  harvest  of  1868  had,  however,  becomn  a  matter  of  general  know- 
ledge, the  (Ul  in  prices  became  more  rapid,  and  there  was  an  almost  uninter- 
rupted decline  nutil  the  19th  of  December,  when  49b.  6d  wap  the  average  quotation. 
From  that  point,  there  was  a  recovery  of  from  2s.  to  Ss.  per  quarter  ;  but  in  April, 
May  and  June,  there  was  much  heaviness  in  the  trade,  and  on  the  8th  cf  May 
the  average  price  cf  English  wheat  was  only  44s.  4d.  per  quarter.  Towards 
the  close  of  the  season,  ar^^ing  from  causes  which  are  too  recent  to  require  rfcapitula- 
tioo,  there  was  a  rise  to  64s.  2d.,  which  is  the  cksing  price  of  the  season,  and 
which  is  2s.  9d.  lower  than  at  the  termination  of  1867-8. 

The  table  which  follows  (hows  the  average  price  of  English  wheat  in  England 
tod  Wales  each  week  since  the  commencement  of  the  seasr  n  1864-6.  From  th  s  it 
will  be  seen  that  notwithstanding  the  abundant  crop  of  last  year,  the  price  was  never 
it  so  low  a  point  as  in  1864-6.  This,  however,  is  easily  explained.  The  crops 
of  cerial  produce  in  1864  xvere  very  large,  and  had  been  preceded  by  an  abundant 
harvest  in  1863.  The  resnlt  was  that  at  the  commencement  of  1864-5  there  was 
s  large  supply  of  old  wheat  in  stock,  while,  at  the  same  time  new  produce  came 
freely  to  market.  Even  from  the  low  average  of  42s.  Sd.,  there  was  an  almost 
tuuntsmiptsd  fall  nntil  the  dote  of  the  year,  when  the  average  quotation  was  ooly 


SOO  THE  WHEAT  TRADE   OF   ORXAT  BRITAnr,  [Ocloier, 

87».  lOd. ;  and  altbongh  wheat  became  a  little  dearer  during  the  latter  pari  of  the 

eeasoi),  the  Averaj/e  price  for  1864-6  was  only  408.  xd.  per  qoarter.    The  ahnndaiim 

of  the  crop  c.f  1868  has  bad  aD  iroportaDt  effect  upon  prices;  but  it  has  Dotfbresd 

thefii  down  to  so  low  a  poiot.    The  lowest  official  average  was  44e.  41^  which  is 

68  6d.  above  that  of  1864-5.     Bat  at  the  close  of  186'<-*4  the  sopplies  of  old  wbeit 

were  exhausted,  and  ihe  new  crop  came  rapidly  into  coosamption  at  an  early  petiod. 

A  v«ry  importnnt  fall,  howeyer,  took   place,  and  the  satisfactory  result  is8«ccr- 

tained  ihat  Eog.ish  wheat  was  Just  20  .  per  quarter  cheaper  than  in  1867-^    Hist 

result  not  only  benefitte  (  the  coueumer  but  the  grower  also,  for  it  is  evident  that  le 

Bi  undant  crop  producing  88s  3d.  per  quarter  is  lar  more  remnnerative  than  a  scssiy 

crop  yielding  68s.  6d.  per  quarter.     With  regard  to  the  future,  it  does  not  appear 

probable  that  any  great  ▼ariaiiun  from  the  prices  now  cnrreot  will  take  place.    Ths 

nbundrtnt  baryest  of  last  year  has  been  succeeded  by  a  crop  which  b  believed  to 

be  under  an  average,  but   which  bus  been  harvested  in  excellent  oooditioQ^  sad 

which,  taken  as  a  whole,  is  not  uosatis&ctory.     We  have,  howeTer,  by  the  latesssi 

of  the  season,  baved  a  months'  coos' uruption,  owing  to  the  ctrcumatanoe  ihat  thirtsca 

months'  Ci  nsumption  has  l^et^n  thrown  on  to  last    year's  crop.      If,  however,  it 

should  be  found  when  the  season  is  more  advanced,  and  when  a  better  kmnrledgs 

hfts  been  gained  respecting  the  actual  yield  that  the  crop  is  deficient  in  quantity 

ther«  are  ample  tupt>lie4  ready  to  coine  forward  from  nearly  all  the  leading  graa^ 

growing  countries  of  the  world  to  make  up  for  the  deficiency  here  : — 

186!^.  1887.  1866.  1866.  1864. 

September   6 65.8  62  6  47.8  es.O  4S.S 

U -. 66.5  ftl.«  47.0  41.T  HA 

*  Itt 54.4  6a.ll  4».8  41.0  4<.0 

*"  k« 63.7  64  1  51.S  40.10  40.ll 

October       8 64.4  68.6  t3.9  41.1  ».S 

10 61.8  64.10  tt.7  41.11  «.» 

''  17 t 68  8  07  9  6t.t  411  88  1 

"  24 63.4  7U5  6«.C  4i.4  t7.l 

*'  ;>1 M.'l  tiU.ll  64.*i  484  86.9 

November    7    69.3  70.1  57.i  45.8  &(.U 

14 68.0  70.1  66.7  46.11  »» 

81 61.6  68.1]  67.6  46.16  S8.9 

2- 610  68.6  iO.O  46.6  8S.8 

December    6 60.1  68.1  61.7  46.6  18.5 

12 40.8  67.8  60  8  46.8  88.4 

Itf 49.6  66.0  69  6  46.8  ».l 

"  i6 60.7  67.4  60  0  46.11  87  W 

1868.  1868.  1(67.  18M.  1«. 

Jaa^vary       8 6U.11  67  10  60.2  46.8  28.t 

V 6i.6  6^.6  61.0  46.1  l».7 

16 52.8  71.6  69  8  45.7  tt.tt 

''  kS    5i.4  78.4  68.2  45.6  42t.i 

»*  £0 6:.5  72.6  62.fl  45.10  88.4 

February     6 61.0  '23.4  6i.4  46.6  88.4 

13 M.W  7i.O  60.10  45.0  38.4 

20 fiO.3  7i.ll  6»  11  45.6  ».t 

87 4».7  78.4  L0.8  46.7  88.6 

March  6.  ..  4tf.4  ':8.8  6».8  46.4  884 

18 48.10  731  60  4  45.6  ».< 

"  20 47  0  78.5  60.0  45.8  8S.4 

»»  87 46.6  72.10  60.11  44.11  88.11 

April  8 4d.4  78.6  61.8  44  9  8B.8 

10 47.0  73.2  60.9  44.5  48.1 

17 46.8  73.8  61.4  44  9  3i.' 

*S4 45.5  73.11  62.11  45.5  SJ.5 

May  1 ....440  74.2  61.10  45.9  8IJ« 

b 44.4  74.7  64  0  46.9  4D.U 

15 ....44.6  74.8  64.11  46.1  41.S 

22 46.2  74.10  t6.a  47,4  4t.» 

"  2y 45.2  78.3  66.6  47.6  4lU 

June  6 46.5  70.8  65.4  47.1  41.5 

*'  14.        46.U  616  6S.9  47.4  411 

19 46  2  6«.l  6V8  48.5  41.J 

26 46.4  67.6  64.10  $1.0  414 

July  3 47.9  6..7  64.11  64.6  4I.J 

10 .....48  11  6*7  64.7  86.10  41.1 

»»  17 60.2  65.0  W.l  640  44.8 

'«  94 60.11  68.9  66.8  flt.O  41.10 

81 619  61.1  67.6  41*1  44.8 

Angnet        7 61.6  67.11  63.2  60.2  4tJ 

14 60.0  66.0  68.4  60.2  «.J 

91 63.1  67.1  86.9  60.10  §>i 

28 64.2  66.11  68.7  49.7  4I.T 

Average iil  68.4X  60.8X  46.6  40.tX 


1869] 


RAILROAD   rrSMS. 


801 


During  the  season,  our  impcrts  have  of  ivheat  been  as  much  as  28,865.128  c^t., 
aj^ainst  85,653,726  cwt.,  beiog  a  diminution  •  f  6,688,602  cvit,  as  compared  with 
1867-8.  Owing  to  the  firmn(>8s  that  prevailed  in  the  trade  shortly  lefore  the 
close  of  the  season,  and  to  the  rap  dity  with  which  coTimunicat  on  can  now  be 
effected  with  the  producing  count rieo,  our  imports  in  July  and  August  were  very 
large.  In  August,  thvy  were  as  much  as  4.00,000  cwt.,  against  1,650  000  cwt. 
in  the  corresponding  month  ]af>t  year.  Of  flour,  there  was  an  i'nprrt  of  8,927,061 
cwt.,  against  8,148,260  cwt.  The  exports  of  whei»t  were  only  160^641  cwt.,  against 
737,881  cwt ;  and  of  flour,  83,545  ewf.,  against  58,504  cwt 


RAILROAD  ITEMS. 


— CoMPANT  RiFOBTB— Boston  anu  Maink  RAiLaoAO. — ^Tfao  earnings  of  this  road 
for  the  years  ending  May  81, 1868  and  1869,  were  as  folloas : 

1868. 

Ftom  nassengers $007,13)28 

freight 608,865  6-2 

rents S8,909  01 

mails     13,67158 

interest,  premium  on  stock  sold,  etc 13,893  94 


1869. 
$097,897  C9 
(>89,918  ^5 
27,50*i  60 
mum  61 
82,474  60 


$1,665,469  88     $1,76149.3  55 
Ezpeoses $1,129,682  82     $1 ,904,608  28 


JBarninKB  less  expenses 

Deduct  tax  on  diYldends  and  surplus 


485,79)  06 
21,786  67 


Net  revenue $418,993  89 

Reaerved  for  the  porchase  ol  rails,  and  unadjusted  liablitles,  etc 

Lesrlng . 

From  which  two  dividends  of  five  per  cent  each  have  been  im'd 


Balance , 

Adi  balance  from  preYlous  year . 


Tvtal  as  in  general  balance  sheet 


566,090  37 
24,Sl6  51 

$533.: ft)  76 
60,000  CO 

$47?,1F3  'm 
455,000  00 

$17,183  76 
976,017  10 

$993,^086 


The  above  balance  of  $993,200  8^,  is  invested  as  f  >Ilows :  in  Newbury  port  rail- 
road bonds  $800,000;  in  Danvers  railroad  bonds  (guaranteed  by  this  corporation) 
78,000;  in  the  Don  vers  railroad  contract  and  ttocli  $27,480;  in  the  Dover  ani  Win- 
nipiaeogee  railroai  stock,  $258  46 (  14 — and  the  remainder  in  expenditures  on  the 
road,  rolline  stock,  etc.,  in  addition  to  the  capital  rece  ve  i  from  the  sale  of  stoci;. 
It  is,  therefore,  ooly  an  element  indicating  in  some  measure,  the  value  of  the  stock 
above  par  ;  but  it  is  not  available  fur  the  payment  of  debts  or  dividends. 

— Portlaud,  Saoo  and  Portsmouth  Railroad. — ^The  report  for  year  ending  May 
81, 1869,  shows  the  following : 


INCOUa  RK0KTPT8. 


Yearend'gYe  rend'g 

May  81,      May  3t, 

18'».  ldH6. 

Paseenj^ezs $307,786     t)01,57t 


Freight 337.85» 

Eipro«8 13,877 

Extra  Baggage 35J 


1S69. 

Machine  Shop t6,7«l 

Mjii 'J  tcnance  of  Way 143,847 

Locomotive  rower 184.6  >9 

TmiD  Bxpenaes 46,40t 

^tatlon       *»        */,»l6 

Office  flstablishment 28,<nX) 

Taxes  and  losarancd 13,683 


20'.  ,782 
14,177 
1S3 


SXFSHDITURIS , 


Mulls. 

Rents 

us.. 


and    mlsoellaneo- 


:869. 
7,837 

8,096* 


1866. 

7,83  r 

4,864 


$575,036     $530.-J89 


18^8. 

$1,054 
1><0  451 
112,527 

89,45V 

29,697 

i8,ni« 

11,917 


1869.  186'. 

Damages  and  Law  Expenses     $4,962  $5,989 

899,449  320,011 
10,000       10,000 

409,449  830^ 


NetBamiDga 165,586    200,878 


Payments,  including  interest,  dividends,  taxas,  &c ^ .  •  r* 14 1,807 

bnrplns  this  year .^ .v«vm 28,779 


802  RAILROAD   XTKlia.  [OclolCT, 

The  claims  of  thia  compaDy  upon  the  Bostoo  mn'i  Maine  and  Eaiteni  raHroad  cm- 
paf'ie^,  for  the  payment  of  divideod*  io  gold,  has  bt-en  settled  a«  follows:  The  oooi* 
pany  receives  $180,000  fo*  claims  on  back  di video 's,  aud  the  Jooe  (i8t 9)  dtridcod 
aod  all  subsequent  oaes  to  be  paid  in  gold. 

—Atlanta  and  Wkbt  Point  Railroad. — Aciodeosed  eomparatiTe  etateoieBt  of 
items  of  income  for  th«^  fiscal  year  ending  June  80,  1868,  ani  Jnoe  SO,  1869,  gira 
general  results,  ns  follows : 

18S8.  IHB, 

Faseengers $l»,8d8  $11«,«l 

FrelgUt .-^ 205.718  «*%» 

Mall       ....: 7,0i8  8.WS 

Express 8,7b«  a.t« 

Uulted  States  govenunent  and  misceliaQcona 7,157  Itisai 

$»1,071  |«^ffi 

Expenses S4vW 

Net  earnings » |119,1£1 

The  percentags  nf  ordinary  expenses  to  gross  eiminga  is  H  18-10  against  61  lirt 
year.     The  Pr^ si^ient  remarks  in  his  repo  t : 

**llie  unc  rtaiiity  of  all  r*  ilroad  investments  is  mneh  incr«':tsed  by  the  erowiai; 
policy  of  'state  ai>i'  in  neighboring  States,  as  well  as  our  own.  N.* railroad boiU  viik 
thecapiulof  the  shaiehohkm,  to  sHtihfy  the  real  wants  of  the  oonntry,  can  ^  loi^ 
secure  agMinsta  riva  ry  and  c  mp*  tition  under  the  patronage  «>f  the  St«ie  No  pobcj 
conid  te  more  unju«it  and  oppte*>6ive  than  the  policy  of  'bt-ite  aid.'  ItieadifiB- 
gnishiog  feature  iu  itiis  policy  that  the  citiseD  who  has  built  hie  own  enterprise  vitk 
bis  own  means,  is  tux»'d  to  build  up  rival  enterprises,  by  which  his  own  maybt 
ruined.  In  other  wnrda,  he  is  forced  to  contribute  money  for  tbe  destmetioo  of 
his  own  piopert)  I  The  ^-ffects  (f  this  policy  Br<  n<i  longer  Irft  to  theory.  Pniet 
u  abundant  that  roads  wdl  be  built  with  little  regard  to  the  wants  of  the  public, if 
Dim  c.n  cr^.auisrs  an  i  build  them  at  the  expense  of  the  State.  Hence  vast  amoaflfei 
of  capitnl  aie  waited  that  nii^ht  have  been  t)etter  employe  i ;  tf^t  apt  to  be  f  lloved 
oy  loss  of  credit,  and  t  e  bankruptcy  of  the  State,  acd  general  fitiancial  paraUsif. 
Our  road  hasi*  suffered,  ani  wi  1  sutfei,  perhaps,  moio  from  the  effcK^ts  of  this  pcna* 
cioos  polict  in  a  iteighboriug  State  than  in  our  o^D ;  thoogb,  to  eome  extent,  w« 
ehall  suffer  in  both.*' 

— Tbb  SoirrawKSTKKN  Uailboad  of  Gboaoia  reports  its  groea  earnings  ftir  tbe 
year  ending  July  8i,  1869,  at  $910,116  (6,  and  its  operating  ezpenses,  inclodia^ 
taxes,  as  $649,729  89,  or  about  60  per  cent,  leaving  as  net  earnings  the  aum  of  $3^,- 
a>86  18.  Two  four  per  cent  divi<Jends  were  paid  out  of  the  ye!ir*s  eamioitB,  leJvii^ 
a  trifling  surplus.  Tne  receipts  were  $10,000  less,  and  the  operating  expenses  liS.- 
000  less  than  during  the  previous  year,  i  be  shipments  of  cotton  were  less  by  7^000 
bales  than  those  of  tbe  previous  year. 

The  Southwestern  liatlroad  consists  of  a  main  line  from  Maeon  southward  to  Albany, 
107^  miles ;  a  branch  from  Fort  Valley,  S8  miles  south  of  Maoon,  west  to  Colomboe, 
72  miles  ;  a  branch  from  SmiihTille,  88  miles  South  of  Mac  n,  west  to  the  Cbatta 
boocbe**,  (opposite  Eifala,  Ala.,  69^  luiles;  and  a  branch  of  this  last  n«mel  braoch, 
from  Cuihbert  87  miles  we^t  of  Smith ville,io  a  southwesterly  direction  to  FortOaioa 
on  the  >.  hattahoochee,  19^-  mile#.  Of  the  Columbus  branch,  tbe  61  miles  cast  of 
(.olumbus  was  the  old  Mu»C(  gee  Railr«>ad,  formerly  leased  by  the  Sonthwestera, 
but  ccmeolidated  wiib  it  last  October.  Tbe  total  mileage  of  tbe  road  is  258^  miJca. 
It  affvirds  the  only  railroad  route  to  southwestern  Georgia,  except  to  the  levcniniics 
in  the  extreme  south  which  are  reached  by  the  Savannah  A  Oulf  RatlroaU. 

The  Southweatern  Rtiilroad  was  leaded  on  the  24th  of  June  last  to  tbeCentnl 
Railroad  and  Banking  Company,  which  owns  the  railroad  from  Savannah  to  Macon, 
with  a  branch  to  Augusta,  and  reyeral  less  important  branchesi.  By  tbe  terms  of 
this  lease,  a  dividend  of  7  per  cent  anoually  U  guaranteed  on  Sooth  western  atocl, 
aod  when  a  dividend  of  10  per  cent  U  declared  on  Oeotral  atock,  there  moat  be  a 
dividend  of  eight  per  cout  on  Southweatern,  and  io  that  proportion  for  bfger 
dividends.  Tbe  dividends  ( f  the  C  ntral  have'  usually  been  10  per  cent,  of  tkeSe^iK 
weetern  8  per  cent.  In  order  to  wake  the  fiscal  year  of  the  Soolhwestero  (which 
maintains  its  organiu^B^^rrespoud  with  that  of  the  Centrml  begionipg  0soeaib« 
lat,  a  firactiooal  dirnHlpSr  $2  50  per  share  will  be  madtt  for  ut  time  bstVMB 


1869]  RAILROAD  ITEMS.  803 

Aotnifit  t  and  December  1.    Thereafter  diTidenda  oo  both  atocln  will  be  made  rega- 
liirly  io  June  and  December. 

It  is  DOW  reported  that  the  Central  Company  will  purchase  or  lease  the  Macon 
and  Western  Railroad,  which  extends  from  Maooo  to  Atlanta.  The  people  of  Macon 
are  very  much  opposed  to  these  codbo  idationa,  belie ving^  that  they  will  make  their 
town  a  mere  way  station  instead  of  the  terroinas  of  eeveral  roads.  There  can  be  no 
doubt,  however,  that  there  will  be  great  economy  in  operating  the  roads  together ; 
and  if  Macon  suffers  it  will  be  becaaee  the  surrounding  country  finds  it  more  profit- 
able to  ship  through  to  the  seaboard  than  to  make  an  excfaiange  at  Macon.  The 
etrorgeet  o)  jection  made  to  the  consolidation  is  on  account  of  new  roads  from  Bruor- 
wick  to  Macon  and  Albany,  which  could  have  obtained  a  heavy  buBiuees  from  these 
roads  if  they  had  remained  independent  corporations. — Weatem  MaUroad  Oazetie, 

Thb  Nashville  and  Chattanooga  Railroad. — ^The  stockholders  of  this  company 
b«ld  their  annual  meeting  on  August  llth,  at  the  Chattanooga  depot,  when  the  fol- 
lowing report  of  operations  for  the  year  waa  submitted: 

The  receipts  were  11,085,694  52.  Operating  expenses,  |864,018  71.  Net  earnings, 
1231,575  81. 

Kzpendit  jres  7  8  per  cent.    Net  earnings  22  per  cent  of  gross  earnings. 

Companug  this  with  the  re  ult  of  the  preceding  year  we  find: 

Increase  of  gro;s  earnings,  $125,094  79. 

Decrease  ia  operating  expenses,    $172,921    66.      Total  increase,  $298,016  85. 

The  decrease  in  the  revenue  derived  from  rents  and  privileges  is  owing  to  the 
fact,  that  preyioualy  some  $16,000  per  annum  was  receiTcd  from  the  Naahville 
aod  Northwestern  Railroad,  for  rent  of  offices,  roundhouse ,  shops,  yard,  room,  et  ., 
bat  by  the  terms  of  the  lease  under  which  the  Nasbville  and  Chattanooga  Cou.- 
pao7  are  now  operating  that  road,  no  compensation  is  allowed  for  those  privileges. 

Mr.  Cole  t  ffered  the  following  resolutions,  which  were  adopted: 

Resolved,  by  the  etocLholders  in  meeting  assembled.  That  the  Board  of  Directors 
tbii  day  elected  are  authorized  to  lease  for  a  term  of  years  the  Nashville  and  North- 
veatem  Railroad,  the  terms  of  the  lease  to  be  fiied  by  said  Directors. 

Resolved  furthermore,  That  said  Board  of  Directors  be  authorized  io  make  ar>y 
Buch  arrangements  with  the  Tennessee  and  Pacific  Railroad,  in  reference  to  depot 
coonection  or  rail  commanication,  that  they  may  aeem  advantageous  to  the  company 
for  a  term  of  years. 

EaiB  Railwtat. — 

Ofpicv  Erik  Railway  Compamt,         > 
Nsw  Yoxx,  Sept.  9, 1869.  ) 
To  the  President  of  the  New  York  Stock  Ezchauge: 

Dear  Sir  :  In  compliance  with  the  requi^st  of  several  of  yoor  members,  this  com- 
pany has  jufit  registered  in  the  office  of  the  Farmers'  Loan  and  Trust  Company 
common  at  ck  representing  $70,000,000  ;  preferred  stock,  $8,586,900. 

The  earnings  of  the  road  duriig  the  eleven  months  ending  September  l,nr't 
JDcludiig  receipts  of  the  Atlantic  and  Greafe  Western  Railroad,  have  been  $1*1  • 
348.851 

We  have  pleasure  io  stating  that  the  road  and  equipments  were  iieTer  in  better 
condition. 

(Signed)  Jat  Qodld,  President, 

— ^The  suit  against  the  OreeoTille  A  Columbia  Railroad  Company  of  ^'outh  Caro- 
lina, for  the  foreclosure  of  the  mortgsge  upon  their  road,  brought  by  certain  holders 
of  their  first  mortgage  boodi,  has  been  settled  to  the  mutual  sAtisfactioo  of  all 
parties  concerned,  and  ao  older  haa  b^en  made  by  the  court,  now  in  session  (at  the 
suggestion  of  the  aueing  creditors),  dismissing  the  bill. 

— At  the  annual  meeting  of  the  stockholders  of  the  Boston  and  Maine  Railroad,  at 
Lawrence,  Mass.,  recently  held,  the  Portland,  Saco  and  Portsmouth  Railroad  waa 
authorzed  to  increase  its  capital  stock,  and  fully  equip  itself  aa  a  firsi-class  railroad. 

CoMPLsnoif  OF  TH«  LsATSMWOBTH  AND  ATOHisoir  Railboao. — ^Tbo  last  rail  of  this 
road,  connecting  the  Central  branch  of  the  Pacific  Railroad  with  Leayenworth  and 
St  Louis,  via  the  Missouri  Pacific  Railroad,  waa  laid  on  September  2d,  and  the  first 
train  passed  over  it  to  Atchison. 

Lau  Bbobm  ahd  Miobiqan  SoOTBiair.— The  following  atatement  for  the  first  week 

5 


S04 


BAILROAD   ITEMS. 


[Octdbtr, 


of  September,  like  all  stRtements  of  carniogB  hereafter,  giyes  the  eaRunga  of  the  Ima 

between  Chicago  and  Baffitlo : 

Bept.  1  to  Sept.  7, 1869 ^....  |S:S.<]8  9I 

Mept.lW)Sept.7,1868 ^ »V«s:3 


Inoieaee |iO;SQ64 

Travel  over  the  road  is  very  satisfactory.  The  fast  train  ^ains  conticoally  is  pofn- 
larity,  as  might  be  expected  from  its  ezcellent  aocommodatioos  and  perfect  regdariiy 
in  making  time. 

— Messrs.  S.  W.  Hopkins  A  Co.,  58  Old  Broad  street,  London,  and  69  BroKivir 
New  York,  furnish  the  following  official  statement  of  the  export  of  rails  from  Oreii 

Britain : 

f-Month  end*g  Joly  81-^      /--6  vaonths  eod*c  Jslj  SI.-> 


America^  1867 

United  States ..  tons.  16,668 

Bri'ieh 8,6^8 

Cuba 470 

Brazl 1 

Chill - 19 

Pern 

En^ope — 
Russia 19,7f8 

Swedea 73 

Prassia S99 

Illyria,  Crotia  and  Dalmatia 

France £0 

Holand 1,180 

bpain  and  Cunarles 1,681 

Asia- 
British  India 18,976 

Australia 786 

Afrlea- 
Bgypt 

Other  conntries 8,819 


186b. 
16,9.^ 

826 

28 

967 

168 

7,886 
88S 
198 

1,08a 
16 

2,661 
448 

1,681 


2,779 


I8e9. 

t6,249 
1,648 

•  •  ■       • 

Sll 

85 

8,815 

85,781 

244 

2,428 

2.7» 

Ti9 

1,S91 

910 

8,338 

1,846 

1.615 
7,3t5 


1897. 

112,661 

9,4ti8 

8,077 

779 

9,674 

168 


18K(. 
16&,480 
10.8G8 

1,962 
1.89S 


606 
4,790 

•  •  •  *  - 

80 
8.945 

6,170 

88,478 
10,436 

8,668 
18,060 


284(10 

1,4« 
4,0M 
4.840 
96 
19  9U 
4,896 

81.0X 
6,749 

10,611 
2L4il 


19,fif 
14,81 

lasi: 

^« 

46,69 
1U41 


Total 66,101     87,616    108,938         818,018     884.C58     Sld,T» 

Old  iron  to  all  countries 4,034      7,8}!8      8.938  26,749      42,687      SUt» 

— The  Western  Union  Telegraph  Company  have  purchased  the  lioee  of  the  AUaotie 
and  Pacific  States  Telegraph  Company  for  about  60  per  cent  of  their  actual  east  of 
construction.  By  this  arrangement  the  old  Company  ia  ecabled  to  inrKft«e  its  iioli- 
ties  for  doing  business  at  once,  instead  of  waiiiog  for  the  couatmction  of  0€v  Una 
over  the  same  territory,  which  they  had  in  contemplation.  The  purchased  propeitj 
was  all  new  and  in  excellent  condiltoo.  The  Western  Union  Company  will  aaoooact 
a  material  reduction  in  rates  to  all  points  on  the  first  of  October  prox. 

DiSTAHOKS  VIA  CHICAGO  AND  Nxw  Yosx  TauNK  LiKEs. — A  corretpoDdflDt  of  ike 
Chicago  Railway  Review  gives  the  foil  )wm^i  I  have  compared  the  tables  of  ni»Ttf<frf 
(the  authority  is  Appleion'$  Railway  Ouide)  by  the  various  routes,  with  the  foUoviof 
results: 

Noilh  Shore  Line.  '4 ^lfD« — 

New  York  to  Albany. ^^i  4'^^ 

Albany  to  Suspension  Bridge 801         v  ^: 

Bridge  to  Delrolt *«(  gj*. 

Detroit  to  Chicago 284f  "J 

New  York  Central  and  South  Shore  Line. 

Nr^w  York  to  Albany 144 

Albany  to  Kuffdl 2« 

Buffiilo  to  Chicago 638 

Erie  and  South  Shore  Line.— (via  Buffalo.) 

New  York  to  Buflklo ^i9C 

Buffalo  to  Chicago ^ SSSf 

Erie  and  South  Shorn  Lise.~-(Tia  Dunkirk.) 

NewYorkto  Dunkirk 4001  ^^ 

Dunkirk  to  Chicago —  4»J 

Pennsjlvania  Eallroad  Line.— (via  Philadelphia.) 

New  York  to  Phlladelph'a »|  ., 

Philadelphia  to  Pltt«buig »>  C* 

Pittsburg  to  Chicago 468) 

Pennsylvania  Baiiroad  Llne.^Tla  Alleatown.) 

NewYorktoHirrisburg W/  ^ 

flarrl  bnrg  to  Pittsburg jOVSW 

Pittsburg  to  Chicago 4®) 


}  *'^l  SIS. 


1S69^  hailroad  rrests.  805 

BaitivorS  ahd  Ohio  Rail&oad. — At  the  reent  monthly  meetiosr  of  the  Board  of 
Directors  of  the  Baltt'nore  and  Ohio  Railroad  Gompaoy,  PreBident  G-arrett  made  the 
followiog  Btatem«»nt  in  refereoce  to  the  boeinesa  of  the  roads:  The  Board  Trill 
remember  that  on  the  Ist  of  July  the  contract  with  thd  Saodasky,  Maosfield  aod 
Newark  Railroad  Company  went  into  operation.  That  line  is  116  miles  in  length, 
eztendioB^  from  Newark,  on  the  Central  Ohio  division,  to  the  city  of  Sandoskf,  on 
Lake  Erie.  Passing  nn  er  (he  charge  of  this  company  permanently,  it  is  now  known 
B8  the  Lake  Erie  Diyision  of  the  Baltimore  and  Ohio  railroad.  The  relations  of  the 
Baltimore  and  Ohio  railroad,  through  the  Marietta  and  Ciocionatt  road,  nnder  the 
contract  which  has  been  recently  made  with  the  Cincinnati,  Indianapolis  and  Lafayette 
Railroad  Company,  are  also  proving  of  a  highly  interesting  character.  Amidst  the 
tremendous  efforts  and  conflicts  of  the  past  few  months  of  the  great  Trunk  Hoes,  in 
connection  with  western  business,  the  power  and  capacity  of  the  Baltimoie  and  Ohio 
road  to  maintain  satisfactory  results  under  its  enlarged  arrangements  have  been 
exhibited.  It  is  interesting  to  note  that  the  rerennes  of  the  main  stem  and 
braochea — which  in  the  corresponding  month  in  1868,  were  in  the  aggregate 
1790,  59  99,  in  the  past  month  of  Aogo8^  notwithstanding  the  unprecedented  difflcuU 
ties  in  rates,  amounted  to  1 1,086,244  29,  exhibiting  an  increase  of  $246,184  80.  Of 
this  amount,  however,  $40,889  21  waa  derived  from  the  Lake  Erie  division.  Deduct- 
ing this  som,  an  increase  of  $206,296  09  ia  ahown  io  the  general  bunnesa  of  the  com- 
pany, 

Eaii  Railway.—  Officib  Ebi«  Railway  Co.  > 

New  Yom,  Sept.  11, 1869.      f 
R,  Q.  Rolston,  Esq.,  President  Farmers'  Loan  and  Trust  Co.: 

Dear  Sir — The  following  is  a  statement  of  the  stock,  debt  and  leasehold  estates, 
io  answer  to  your  inquiries  of  this  date.  The  amount  of  common  stock  issued  ia 
$70000,000,  and  the  amount  of  common  scrip  none.  The  amount  of  preferred  »tock, 
including  scrip,  $8  686,910.  The  amount  of  mortgage  debts  (7  per  cent)  authorized 
and  issued  ia  a  follows : 

First  mortgage,  $8,000,000,  extended  May,  1867,  due  1897. 

Second  mortgage.  $4,000,000,  date  of  issue  March  1, 1849,  due  1879^ 

Third  mortgage^  $6,000,000,  cate  of  issue  March  16, 18fi8,  due  1888. 

Fourth  mortgage,  $4,441,000,  date  of  issue  Oc  ober,  1867,  due  1880. 

Fifth  mortgage,  $926,600,  date  of  issue  June  1,  1669,  due  1888. 

Fuflklo  Branch  mortgage,  $186,400,  date  of  issue  July  1, 1861,  due  1891. 

The  amount  ol  sterling  bonds  £1,000,000,  equivalent  to  $4,844,400,  date  of  issue 
September  1, 1866,  due  1876. 

Under  a  statute  of  the  State  the  mortgage  debt  ia  convertible  into  stock  only 
within  ten  j  ears  from  date  of  issue.  The  ten  years  have  expired  on  all  but  the 
sterling  loan,  and,  a  a  that  ia  aelling  at  par  in  London,  there  is  no  danger  of  conver- 
sion. There  is  no  leased  road  that  can  be  converted  into  the  stock  of  this  company, 
except  in  compliance  with  the  rules  of  the  Slock  Ezchenge  by  giving  thirty  days 
notice,  nor  will  any  increase  be  made  in  any  form  except  in  compliance  with  a^resaid 
rule. 

H.  N.  Otis,  Secretary.  Jay  Gould,  President. 

The  Louisville,  Cinoinnati  and  Lxximoton  RoAD.^The  consolidation,  which  haa 
been  anticipated,  haa  at  length  been  completed,  as  appears  from  the  following 
despatch :  ^"Louisville,  Ky.,  Sept.  11. — Articles  of  consolidation  were  sigued  to-day 
by  the  Louisville  and  Frankfort,  and  the  Frankfort  aod  Lexington  Bailroad  com- 
panies. The  road  Will  hereafter  be  known  as  the  Louisville,  Cincinnati  and  Lexing^ 
ton  Railroad  Company.  They  have  now  in  successful  operation  176  miles  of  the 
road." 

— The  last  rail  on  the  Fort  Wayne,  Mancie  and  Cincinnati  Bailroad,  connecting 
Mnncie  with  Cincinnati,  was  laid  at  Muncie  on  the  4th  inst.,  and  at  6  o'clock,  P.  M., 
the  construction  train  passed  from  the  road  to  the  Bellefontaine. 

Tbe  Richmond  and  York  Rivee  Railroad  Company  have  resolved  at  last  to 
extend  their  road  to  some  point  on  the  Chesapeake  Bay.  They  have  authorized 
for  the  purpose  the  issue  of  $460,000  in  bonds  and  $10  ',000  in  eight  per  cent  ore- 
ferrcd  stock,  making  a  toul  of  $660,<>00.  The  extension  from  West  Foint  to  the  Bay 
will  be  twenty-two  or  twenty-five  milea  long,  depending  on  the  terminus  selected. 


806  BAUiBOJU)  nxMO.  [Odokr, 


Failubx  ow  Tiftonru  Railkoad  Oompahieb  to  Pat  lamnr  Dob  n  Sun 
Loans. — The  followioi<  bu  been  reoeWed  from  mchmood:  Mmot  StMmbn,  tba 
ActiDg  Pint  Auditor  of  the  State,  statee  thai  the  BiehoMmd  4  fianvilW  BailroMt 
Company  baye  paid  into  the  State  Treasury  one-half  of  the  inf  ecesi  doe  the  Sut« 
on  its  loans,  aud  the  remainder  is  to  Im  paid  Deeember  16th,  osder  ineliDCtioD  froo 
Oeneml  Oanby.  The  Orange  A  Alezaodria  Railroad  is  yet  behind.  The  tansil 
interest  dae  from  that  corporation  is  abant  |1 8,000,  while  the  Soothside  Baibot^ 
owes  the  large  sum  of  $262,OjO.  The  Virginia  A  Tennessee  Railrond  owes  aboct 
$420,0U0  interest  to  the  State,  and  neither  of  the  last  mentioned  roade  appears  to 
be  in  a  condition  to  meet  its  liabilities  at  present.  The  Cheeapcske  A  Ohio  Bail- 
road  18  negotiating  a  loan  with  which  it  expects  to  liquidate  its  eniirf  indebCadsav 
to  the  State,  principal  and  interest,  in  all  about  $860,000. 

*"  I  learn  that  the  receipts  of  the  Virginia  A  Tennessee  Bidlrond  wilUn  the  psit 
month  amount  to  $100,000." 

RAarr AN  and  Dblawaks  Bat  Raiuk>ad.— The  sale  of  this  lond  tnok  plaee  eo  tkt 

18th  iost.,  at  the  depot  of  the  company,  Manchester,  N.  J.  Tha  aaln  warn  nnder  a  vril 
of  fieri  faeia9,  issued  to  Robert  8.  Oreen,  a  Master  in  Ghaneery  of  N«w  Jersey,  b? 
the  tKtndholders  of  the  lire,  fir  noo-paymeot  of  a  mortgage  on  the  linn  and  slack  i 
f  1,000,000  and  accumulated  interest  to  the  amount  of  il,700,<  00. 

The  property  was  sold  in  two  lots,  the  first  comprising  the  imSioad  and  its  ear* 
porate  fianrbises  and  rights.  The  second  coosbtea  of  the  entire  rolling  stuck  of  tk 
company,  the  locomotives,  cars  and  the  steamboat  Jessie  Hoyt.  Both  lots  veie 
knocked  down  to  the  bondholders  of  the  company  after  a  very  feeble  eompetitno, 
the  firet  for  $60,000  and  the  seood  for  $74,0i>0.  These  prioes  were  only  BOiBiBa% 
it  beiog  onderstc  od  that  the  bondholders  were  determined  to  boy  in  tbe  line,  isj 
no  opposition  was  offered. 

Tbe  new  proprietors  will  baye  a  fresh  board  of  directors,  of  which  Gharies  OooU, 
of  S^ew  York,  is  propoeed  as  President,  and  intend  issuing  $8,500,100  worth  of  uv 
stock  and  raising  $2,000,000  on  fresh  mortgage  bonds,  tbe  majority  oi  which  is  t«  be 
expended  in  putting  the  road  into  better  working  order  and  smproytng  tha  stock. 

Annual  Rbpobt  ov  tbi  Mimphis  and  Cbabliston  Railboai^  for  the  jeir 
June  80,  1861^.  —Tbe  receipts  and  expenses  liaye  been  as  follows: 

BIOSIPTS. 

From  passengers $600,644  87 

From  freight 47ba>tt  8& 

From  mail • 84,81153 

From       exprees       and       other    ' 
Boarces 89,710  07 

$1,18S,759  89 

Leaving  net  esmlngs. •«....: $i(n,si1^ 

Tbe  receipts  for  tbe  fir«t  six  months  of  the  psat  flscal  y«:«r  were fSM,-*^  il 

And  for  ine  correspoDding  p-  nod  of  the  proTiooa  flaoal  year tSlMd 

Bhowini;  a  decreaae  in  receipts  of • ib.»44)f 

^hile  lor  the  la^t  eix  montna  of  pi#t  fifCftl  year  the  receipts  were.  •••. $i:j»i  ^ 

Ana  for  the  correrponding  period  of  the  prevlons  fiscal  year  ....«• asi,4il  ^ 

Btaowl' iC  an  increase  in  receipts  of $t4K4tf  n 

Dedaotini?  dccreaaeU receipta of  the flrst  six  months 96,M4K 

Shows  an  Increase  In  receipts  oyer  preyloss  ft:cal  year $7.86  iS 

AUbough  tbe  receipts  of  the  whole  year  shew  but  small  gain,  the  results  of  the 
past  six  mo  tbs  promise  well  for  the  future,  it  beiog  a  gain  of  $108,4^^^.''* 
receipts  oyer  tbe  corresponding  period  of  the  preyions  fisnltjear.  ^rsductias 
of  expense  has  been  as  lollows : 

Total  for  1867-8 901^^9:* 

Totelfur  186&-9 58l.5«fl 


Hakes  an  increase  in  net  earnings  of $S4,4lf  ^ 

riMANOIAL    OOMDinOV. 

As  stated  in  the  previous  annual  report,  the  financei  are  easy,  Iheroadwsyssd 
rolling  stock  in  fine  condition,  AU  that  is  now  needed  to  prodoee  iuiuMssd  net  svs 
logs  is  an  improyement  in  the  geneml  boainMi  of  thn  •oootiy,  and  oooseqns^y  « 


OPIBATIKe 

Conducting  tnmaportatlon fillj  S  f 

K^tlyepower t^kjsiit 

Afalntenanee  of  way XwiU*'.^ 

Maintenance  of  cats • 861,119  aS 

$1»jHiff 


1669] 


RAILROAD  KTBlfB.  80f 


iDcreace  in  the  receipts.    Out  of  a  groee  receipt  of  $1,182,769  S2  during  the  past 

year  the  net  earoiDgs  were  bat  $401,212  96. 

The  receipts  of  the  road  may  greatly  increase  without  adding  proportionally  to 

the  ezpeose. 

If  the  receipts  !were  increasfd  S5  per  cent,  reaching »,. It^lTSiOOO  00 

Your    ezp4>Dfles    oonld    not,    we     beHeTS,   increase     m-.re   than     S  per 
cent,  ceschlBg &M,000  00 

Leaving  yoor  net  earniQgs •«« $668,030  00 

Thif  amount  of  receipts  is  nearly  $200,000  less  than  we  obtained  during  the  fiscal 
year  coding  June  80, 1867,  and  when  the  eountiy  fully  reoorers,  oar  receipts  should 
B^aio  be  as  great  as  then,  in  which  event  your  net  earnings  would  not  be  mu^  under 
$800,000  per  annum. 

OOHNBOnONS. 

In  the  last  report  reference  was  made  to  the  future  connections,  the  most  important 
of  which  ie  from  some  point  on  oar  road  to  Atlanta,  Oa.  The  prospects  are  now  £iy« 
orable  to  an  early  begtoning  of  the  work  of  building  this  line,  as  it  is  reported  the 
contract  his  been  let  for  that  portico  of  the  road  between  Guntersville  ana  Jackcoo- 
vilip,  Ala.  The  road  from  ]3ecatur  to  Montgomery,  Ala.,  is  now  under  contract,  to 
he  com-'leted  by  the  first  of  January,  1872.  These  two  southerly  Hoes,  taken  in 
ronnectioo  with  the  St.  Louis  aod  Iron  Mountain  Ro»d  via  Columbus,  Ky.,  and 
CoriDth  on  the  one  hind,  and  via  Memphis  on  the  other,  will  give  us  a  short  line  from 
the  grain  markets  of  the  West  to  the  cotton  regions  of  the  Southeast,  which  must 
add  materially  to  the  tra69c  of  your  road.  Besides  this,  it  woulJ  give  St.  Louisa 
line  shorter  by  one  hundred  and  fiity  miles  to  the  Atlantic  seaboard  at  Qbarlestou 
or  Savannah,  than  to  the  seaboard  at  New  York,  which  must  ultimately  prove  benefi- 
cial to  the  inttreats  of  the  road. 

Negotiations  are  now  pending  between  thoee  representing  the  Winchester  and  Ala- 
bama Ra  Iroad  and  ourselves  for  the  lea^e  of  that  road  for  a  term  of  years.  Shoul  i 
the  eeoditions  be  confirmed  by  the  Legislature  of  Tennessee,  it  will  be  our  interest  to 
boiid.  at  once,  a  branch  road  from  Fearo's  Switch,  s!z  utiles  east  of  Huotsville,  to 
(he  AlabsncA  and  Teooessce  State  line,  there  eonoecUng  with  the  Wiuchesfer  and 
Alabama  Railroad.  Thb  will  not  only  ^ive  us  the  trade  of  several  large  counties 
in  Tennessee,  but  also  a  connection  via  Decberd  and  the  Soutbweste-n  Railroad  with 
the  line  of  r-ad  to  be  built  from  Cincinnati  south,  by  which  we  will  have  as  short  a 
line  from  Grand  Junction  to  Cincinnati  as  by  any  other  route,  and  from  any  point 
east  of  Grand  Junction  on  our  road  a  much  shorter  line  than  any  oth«r  to  Cincinnati 
This  we  regard  as  promising  to  become  one  of  our  most  valuable  connections. 

The  ademphis  and  Little  Rock  Railroad  is  progressing,  with  indications  of  a  com- 

f let  ion  within  twelve  months.  This  road  is  on  the  proposed  Une  of  the  Scuthero 
acifis  route,  and  in  connection  with  our  line,  will  form  the  shortest  and  best  great 
thoroughfare  from  the  eastern  Atlantic  seaboard  cities  to  the  Pacific  coast,  and  its 
ifflportance  to  us  c  mnot  be  over  estimated. 

There  is  a  line  projected  and  being  turveyed  from  Memphis  via  Jacksonport,  Ark., 
Springfield,  Mo.,  and  Fort  Scott,  Kan.,  to  Junction  City,  Kan.,  on  the  Union  Pacific 
Riilroad,  Eastern  Division,  the  distance  being  420  mite?.  This  would,  with  the 
completiun'of  the  road  from  Atlanta,  before  mentioned,  firm  a  line  of  about  1,00U 
miles  in  length  from  Cbariestcn  or  Savannah  to  Junction  City,  which  is  less  than  the 
diUance  from  St.  Loois  to  Uew  York,  and  places  Junction  City  426  miles  nearer 
the  seaboard  by  this  line  thin  via  St.  Lou's  to  New  York. 

On  (he  6th  of  May  Col.  Wm.  Dickson,  f  >r  many  years  a  Director  in  the  company, 
and  a  pioneer  in  the  enterprise  of  building  the  road,  tendered  his  resignation  as  a 
member  of  the  Board,  the  duties  of  which  he  bad  so  faithfully  and  creditably  per- 
formed. 

At  the  annual  meetinsf  the  following  resolution  was  passed : 

Resdlved,  That  the  President  and  Drectore  of  the  Memphis  and  Chariest' n  Rsil* 
road  Company  are  hereby  authorised  to  lease  or  purchase,  as  they  may  deem  beet, 
the  Decberd,  Winchester  and  Fayetteville  Railroad,  in  Tennessee  ;  and  m  the  event 
they  cannot  lease  or  purchase  said  Decherd,  Winchester  and  Fayetteville  Railroad, 
th^y  be  authorised  to  build  a  branch  road  from  or  near  Huntsville,  Ala.,  to  or  near 
Derherd,  in  Tennessee;  and  if  under  the  authority  we  h-reby  grant  to  the  Presi- 
dent and  Directors  of  tiie  Memphis  and  Cbarlestco   Railroad  Company  to  lease  or 


S08 


RAILROAD  ITBMa 


[OtkUr. 


GajBKaIr 
Capital  stock.. 


....6,8U.'Z8  0I 


purchase  the  Decherd,  Winchester  and  Fayetteyille  RaUroad,  and  if  thejiaeMed 
ID  doiofi;  Eo,  ^e  authoriae  U'em  to  build  a  braoch  road  from  or  near  HaotiYiUe,  Ab^ 
to  iottrrept  the  same  at  auch  a  point  as  the  President  and  Directoia  may  cocaidcr 
for  the  beet  iniereeta  of  the  Memphis  and  Charleston  Railroad. 

The  Board  take  pleasure  in  acknoTrledging  the  fidelity  acd  capacity  vith  vhidk  the 
business  of  the  yarioua  departments  of  the  company  haye  heeu  managed  dsikf 
the  year. 

ooirniNssi)  baiahcb  » 

SB. 

Gonetmction  proper :  $ 

CorntrQCtiOQ ....fi,864,91& 

Incidental  to  constnustlon 1.025.S18 

Equipment 1,901,970 

$8,683,783 
Stocks  and  property : 
Stock  in— 

If  isB.  Central  Railroad 141,600 

Sonth  and  North  Ala.  R.B 87,900 

houthern  Ezprees  1  o 87,S00 

Hem).hiB&^t.  Lon's  R.R 500 

Bbelbv  Iron  Company 9S,C00 

HoblfeA Montgomery  )<-R S9,S00 

National  Bank  at  H untSTille 8,000 

Nashville  A  Decatnr  Ridlroad 36,000 

Baitroad  Hotel  at  UontSYlllo 6,083 

Telegraph 8,684 

Road  material .«*.....».« 113,791 


Fmided  debt  r 

State  or  Tennessee 1,017.91(45 

First  mortgage  bonds 1,398.000  Ca 

Seeond  nongage  bonds 1,C0 ,01}  oo 

4,110,937(5 

Floatirgdeat: 

Bills  payable 1S7.S86&^ 

Pasi  nne  coupons 3S.S0  00 

hayrolls B5,jf'3£ 

Dividends       ^  «.«I3! 

Unpaid  State  interest &U&\i 

Unpaid  United  States  taxea SStTSi 

Dne  te  railroads ItSSlK 

Dae  to indiv.daala WJK6U 


Profit  and  lo«s «, 

Sn^poDse  aecoMit .. 


613,$S5« 
1",K«  s 


Receipts: 

PfiBi»age 

Freight 

Hatl  serrlce 

Express  service 

Keuts  and  phvileges 


6on,Mt9: 

4'.a.l3  35 

31.7^  s; 


Total  •  •  •  •.%• .  •  •  *  .  •  I 


i,i?3,:»  « 

.$il,«9,>l9  » 


637,908 
Interest  and  expenses: 

Boad  expen-es 781,646 

iDten-st  I  n  State  bonds 88,437 

Interest  and  exchange 8,696 

In' erest  on  Company  bonds., 156,665 

Tax  account JW,v89 

1,066.978 
Assets  * 

Bills  receivable 89,664 

Coupon  bonds ^. 696,600 

Dne  from  railroads ^....  .....  186,083 

Dne  from  individuals 66,639 

Dne  from  agents 6,8h4 

Sam  Taie,  Receiver S6,683 

United  States 19,319 

Poet-office  Department 20,897 

People's  Ban ic  or  S.  Carolina :6,596 

Georgia  Railroad  Bana.... 95,661 

Cash 66,040 

1,063,(^ 

Total $llii»,919 

Union  pACino  Raiload  CoifpAKTi^The  Preekient  of  the  Uoian  Pacific  RaOresd 
Company  baa  addressed  the  folio nring  circular  to  thR  atock holder* : 

Offiok  or  TBI  Union  Pacxrio  Railboad  Co.,  \ 
BoeroH,  Mass.,  Se^^t.  15th,  lS6i^.     ) 
To  the  Stockholders  of  the  Union  Pacific  Bailroaa : 

It  is  well  known  that  malicious  attacks  have  been  made  upon  voar  company,  opoB 
lis  credit,  and  upon  the  character  of  the  work  itself.  IVhik»  all  persons  «bo  k>fv 
the  real  causes  of  theoe  attacks  were  well  aware  thai  Uiey  were  withont  foarcUn^a 
end  only  vindictive,  it  cannot  be  denied  that  they  were  a  source  of  grave  enibs^nse- 
ment  and  difficulty.  There  is  nothing  so  eeositive  as  credit :  It  may  receive  a  cc<st 
as  flrreat  a  temporary  injury  from  falsa  rumors  aa  from  daina^ins;  statements  of  i^' 

The  natural  result  of  these  assaults  upon  the  compacty's  credit  was  the  srn^t  of 
the  public  sale  of  its  securities,  and  a  threatened  danger  of  stoppin;^  the  work,  vhes 
two  millioDs  a  mouth  were  required  to  oontiaue  it.  It  was  fortunate  for  the  evubirf, 
as  well  as  yourselves,  that  you  had  the  ability,  af  well  as  the  conrage,  to  suvajiod 
the  millions  from  your  private  mea>.8  that  were  req,uired  t  ihoish  the  roai.  I  beli<ra 
that  no  private  corporation  ever  before  made  so  lar^e  a  cali.  or  one  that  vs^  ixu> « 
promptly  responded  to,.    The  work  upon  the  line  was  contiDned  during  the  viai«  '^ 


1869]  WXflTSRir  union  TELlOaAPH   OOMPANT.  309 

A  yerj  bcftvy  extra  cost,  bot  nearly  all  the  obligatioot  iDcnrred  baye  now  been 
adjusted. 
The  earaiDgs  of  the  road  eince  its  opening  have  been : 

Prom  May  10  to  May  81 $891,490  12 

*'    Juue  1  to Jnne 80 7'6,«»W 

•*    JuyltoJolySl 638,559  96 

This  18  at  the  rate  of  about  ei;/ht  millions  a  year,  which  will  be  steadily  aog- 
mented  by  the  development  of  tbe  Pacific  coast  and  by  settlement  along  the  line. 

The  company  own  over  8,000,000  acres  of  land  in  the  Platte  Valley,  in  Nebrasks, 
which  competent  judges  pronounce  equal  to  any  in  the  West.  Tbe  lands  were 
offered  for  sale  at  Omaha  July  27 lb,  an  i  40,000  acres  were  sold  in  one  month  there* 
after,  at  an  average  of  over  $5  per  acre.  Tbe  company  also  own  over  ten  million 
acres  in  addition,  some  of  which  is  of  little  value,  but  there  are  portions  from  which 
a  cooaiderable  aum  will  eventually  be  realized. 

You  will  perceive  that  the  income  of  the  company  ia  now  ample  to  meet  the 
interest  on  lU  first  mortgage  and  land  grant  bonds,  and  we  have  every  reason  to 
expect  that  the  natural  growth  of  its  business  will  soon  give  its  st-ck  a  value  that  will 
make  a  suitable  return  for  the  risk  you  have  taken  in  building  the  longest  railroad 
lioe  in  the  country,  through  a  wilderness  which  most  persons  pronounced  impassable 
for  a  locomotive.  Ouvaa  Amis,  President. 

San  FaANGisco,  Sept.  12. — ^The  Western  Union,  and  Atlantic  and  Pacific  States 
Telegraph  Companies  have  consolidated. 


■^  ''■■'■^■i^x  MUX  «  ■         I.  IIMM^^»^^  «« 


WESTERN  UJyiON  TELEGRAPH  COfilPAlVT. 

Tbe  tnnnal  report  to  the  stockholders  of  this  Company  for  the  year  ending 
Jane  80,  1869,  has  just  been  issued,  and  b  a  very  complete  document,  not  alone 
ioterestang  to  stockholders  of  the  Company,  bot  to  the  public  generally,  as  a  brief 
hlitory  of  the  Telegraph  in  the  United  States. 

OaOAHIZATION  OF  THK  WX8TUN  UNIOK  COXFANT.  / 

The  WMtem  Union  Telegraph  Company  was  originally  organized  as  tbe  New  York 
and  MiseiBSippi  Valley  Printing  Telegraph  Company,  on  the  1st  of  April,  1851,  for 
tbe  purpose  of  building  a  line  from  Buffalo,  N.  Y.*  to  St.  Louis,  Mo. 

Dy  numerous  purchases  and  consolidations  of  lines  throughout  the  country  which 
have  been  going  on  almost  nninterruptedly  f^r  nearly  a  score  of  years,a  complete 
coification  of  tbe  great  majority  ol  tbe  telegraph  lines  in  the  United  States  has  been 
the  result,  and  rendered  tbe  system  the  most  extensive  and  efficient  in  tbe  world. 

THI  XXTEKT  OF  TBI  WKSTaBN  UNION   LINKS. 

The  territory  now  occupied  by  the  lines  of  this  company  embraces  almost  tbe 
entire  civilized  portion  of  the  continent  of  North  America.  On  the  eastern  coast 
oui  lines  extend  from  Plaister  Oove,  on  the  Gulf  of  the  St.  Lawrence,  to  lodianola, 
00  the  Gulf  of  Mexico ;  and  on  the  western  coast  from  Los  Angelos,  California,  to 
the  fieheiies  on  tbe  Eishjox  River,  80O  miles  north  of  New  Westmioster,  British 
Columbia.  Tbey  reach  across  tbe  continent,  from  the  Atlantic  to  the  P^tcific 
Ocean,  and  embrace  every  State  and  Territory  in  tbe  Union  bot  Mionesota,  New 
Mexico  and  Arizona,  and  include  tbe  British  Provinces  of  Nova  Scotia  and  New 
Brunswick.  Our  lines  also  have  an  exclusive  connection  with  those  in  Newfound- 
Iind,  Canada,  Minnesota,  Wisconsin,  and  New  Mexico,  and  with  the  Atlantic  and 
Cuba  Cable?. 

[We  are  informed  that  since  the  preparation  of  this  report  the  Company  has  pur- 
chased the  lines  and  property  of  the  **  Atlantic  and  Padfie  StateB  Telegraph  Com* 
pauy"  of  California,  for  which  it  paid  $115,000.  Tliis  purchase  was  made  because 
the  Company  needed  the  material  ta  enable  it  to  meet  the  demands  for  telegraph 


810  WEBTXRK  UNION  TKLSORAPH  OOICPABT.  [OeUAef, 

fiicilitieB  OR  the  Pacific  coast,  aod  bccaoee  it  coold  be  acqnirad  at  wbit  wis  legwdtd 
a  fiiir  yalue,  being  aboot  40  per  ceot  leea  than  tbe  original  ooei.  Bj  tbiBfrnrdiase  tke 
Western  Union  Company  have  acquired  about  500  miles  additional  of  line,  and  aboot 
1,000  miles  of  additional  wire. 

The  Atlantic  and  Pacific  States  Oompany,  we  belieye,  waa  organised  about  two 
years  since,  and  had  expended  in  the  construction  of  lines  about  $200/)00  in  gold.— 
Ed.  MAttAziN^] 

aiOROAKTZATIOlf  OF  THS  BTSTIX. 

Among  the  more  important  lines  which  have  been  or  are  now  b^ng  rebuilt^  h  tkat 
extending  from  Omaha  to  San  Francisco. 

The  opening  of  the  Pacific  Railroads  has  fortunately  remedied  tbe  diffieulties  fh» 
Indians,  and  the  lines  have  been  transferred  from  the  old  route  to  the  railroads  as 
fast  as  possible.  Within  the  past  year  <  he  new  lines  have  been  completed  ever  ihs 
entire  length  of  the  Union  Pacific  road  from  Omaha,  Nebraska,  to  R'oroootorv  Soamut, 
Utah,  a  didtaoce  of  1,200  miles ;  and  over  tbe  Central  Pacific  road  from  SacramentQ, 
California,  to  £Uo,  Nevada,  a  distance  of  468  miles.  Nearly  all  tbe  poles  are  dist- 
ributed for  tbe  ccnstructlon  of  tiie  line  over  the  int»rvening  section  between  Proowa- 
tory  Summit  and  Elko,  a  distance  of  220  mUes,and  it  wiu  be  completed  during  the 
present,  season. 

Tbe  "following  table  gives  the  aggregate  amount  of  lite  which  has  been  eoB> 
structed  and  reconstructed  during  the  pact  three  years, showog  it  to  be  morethas 
80  per  cent  of  the  entire  extent  of  line  t>elonging  to  th«  compioy  : 

BTATIllBNT  BBOWiriO  TBB  NUMBBB    OP    MILIS  OF  POL«a    AND  WttC    OOHSTKUOIXD   AXD 

RtOOMBTaUOTaO  FROM  JULY   1,  1866,  TQ  JVLT  1»  1B69. 

0 — Constracted — ^  #->Re-eonstncted-> 

Xaesof  Milesof  Mllesol  Mi'esof 

poles.         wire.  pole».  wir?. 

PromJnlyl,  t8fi6,toDec.8l,18fl6 1,681          2,748  «,«5  «,«« 

*'     Dec.ai,  ISfHi,  toDec.  M,  1867 2.518           4,4<8  2,806  4.'S1 

»'      D.cSl,  1867,  to  Doc.  81,  1866 2,901           8,086  2,082  4JM 

'*     Dec.8i,  1868,  to  July  1,  1869 l,6i4          4,90a  490  UISi 

Total "Siw      i^jm         S^     n,s» 

XXTKHT  OF  RIVAL  OROAHIXATIOm. 

l^he  following  statistics  will  show  tbe  comparative  extent  of  the  linea,  wire  sod 
offices  belonging  to  the  Western  Union  Company,  and  those  working  in  eulnfire 
connection  therewith,  and  of  those  of  all  the  rival  organisatioDS : 

Number  of  miles  ol  line  belonging  to  W.  U.  system 6S.M 

'*       *•  "   wlie         "         "  "       M!,» 

»•       "  siaUons  "         "  "       4,«tf 

Number  of  miles  of  line  belonging  to  Rival  Companies 8,73 

••      »*  "   wire         **         **  •*        1,1^ 

"       "  sUtlons  "  "  "       «» 

Thus  it  will  be  seen  that,  rf  the  total  number  of  miles  of  line  io  the  United  Sbtsf 
and  the  British  Provinces,  the  proprrtion  belonging  to  all  rival  ocgaDiaitioos  ii  about 
ten  per  cent  aod  of  wire  and  stations  Bboui  ^even  per  cent 

The  increase  o'  tbe  lines  of  the  Western  Union  Company  by  cooatroctioa  aloos, 
during  the  past  three  years,  exceeds  by  1,195  miles  the  total  amount  rf  lines  teloo^- 
ing  to  sll  the  rival  organiaatic  ns  in  the  United  States  sod  Canada  ;  while  the  amciiat 
of  wire  erected  by  this  company  during  the  same  time  ia  0,000  nulea  more  than  tfatt 
owned  by  all  the  rival  companies  combined. 

FINAKCIAL  STATI8I0S    OF  TUX  OrXFAirr. 

^Capital  Stock. 

The  capital  of  the  company  at  its  orsranisation  in  April,  1861,  was  $260,006. 
For  more  than  seven  years  thereafter  no  dividen  s  were  made,  tbe  aorplos  eanii^ 
beiog  dvvi  ted  to  the  construction  an  |  purchase  of  additional  lines.  On  the  23d  of 
Decemb  r,  1868,  the  amount  of  stock  ouUtanding  was  $7,950,700,  the  increase  in  tbe 
eleven  years  which  had  intervened  being  due  to  consolidations  of  other  lines  and  (b  e 


186  9] 


WX8TKAN  17NI0K  TBLXORAPH  OOMPAHT, 


911 


eapitalintion  of  profits.  The  onited  capital  of  the  Tarions  companies  whose  lines 
were  cnosoUdated  with  oars  during  this  period  amoonted  to  over  17,000,000.  The 
companj  enbeeqaently  itsned  its  stoc^  npoo  favorable  terms  in  the  acqoiflition  of 
other  (elegraf  h  lioes  to  the  extent  of  $2,116,200,  and  on  the  11th  of  May,  1864,  made 
a  stock  dividend  of  $100  per  share,  thus  increasing  the  capital  to  $20,18,8800. 
It  lias  since  been  increased  as  follows : 


ForA  AO.Tfl.etock 

B.  *M.    '•       "    ^ 

Hoa«9       ♦•       ••    

Pemb'n  AGold.Tni8rs...  .. 

Caah 

Wcftem  Uoion  honds 

..     $898,400 

68,000 

6,700 

8,800 

77.000 

91,500 

Ithaca  teleeraph  stock 

14,600 

CaL-itite    "           "     

byra'e*B,**          "  

161,900 
4,600 

Mo.  &  Kan.  *^      stocks 

U.  States     "     stock 

80.410 
..     8,885.S0w 

**    ••    Pac"        "    

.    8,888.300 

Eqaalizatlon  of  atock,  as 

pirGoiiao.id*ASgwt 468,000 


ForFractipns $65400 

TmemanVg  and  Senses  Falls 

stock 8,600 

Hick'  A  Wriffhtrepeat. 1,600 

LodlTelesraph  sto.k 600 

American-*         '•    11,883,100 


Pitts.,  Oln.  &  Loo.  st'k. . 


4,100 


Total  capital  stock $41,068,100 

Owned  by  company  exclnsiye  of 
the  sinkLDg  fond. 494,800 


Balance  on  which  dlTidends  of  Jnly, 
18tt»,  was  paid..  $40,668,800 


THE  BOWDBD  DEBT. 

The  bonded  debt  of  the  Western  Uoion  Company  was  begun  in  1864,  by  the  issoa 
of  $3,000,0<  0  of  reyen  per  cent  bonds,  for  the  purpose  of  buying  the  control  of  the 
fltock  of  the  California  State  Telei;raph  Company,  and  for  the  construe  Jon  of  new 
Hoes.  These  bonds  were  conyertible  into  the  stock  of  the  company  at  par,  ant 
191,600  were  subsequently  so  couyerted,  leaying  the  balance  oatstaodiog  January  1st, 
1866.  $1,9(8.500. 

The  amount  since  issaed  is  as  follows : 


For  Ra9*n  Exteo .  tel.  stock. $8,170,893 

Lai.  BU'e  "      "  218,940 

West.  Union      "      »' 10,000 

Wa8h.&N.O."      •• 61,176 

Beal  estate 60,000 

For  cash 67e,ti88 

These  bonds  mature  a?  follows : 

In  1873 , 

In  1875 


American  telegraph  bonds $81,503 


Bonds  paid  and  cancelled . . . 


$6,071,096 
1,436,996 


Am*t  of  bond,  debt  July  1.'69 $4,634,100 


$89,603 
4,644,600 


$4,681,100 

The  bonds  tuned  in  1864  became  doe  in  May,  1866,  and  May,  1867,  and  were  paid 
partly  from  the  net  earnings  of  the  company.  One  dividend  was  passed  because 
It  was  deemed  prudent,  in  the  then  existing  state  of  financial  affairs,  to  appropriate 
the  earnings  to  the  payment  of  the  $54^,696  of  bonds  maturing  in  May,  1867,  rather 
than  to  diviJe  them  among  the  stockholders,  and  thereby  compel  the  negotiation  of 
a  new  loan  with  which  to  meet  the  maturing  debt. 

The  greater  portion  of  the  r'ebt  of  the  company  wss  incurred  in  the  grand  attempt 
to  build  a  line  on  the  northwest  coast  and  across  Beh*  lug's  Straits,  to  connect 
with  the  Russian  line  at  the  mouth  of  the  Amoor  River,  known  as  Collins'  Oyer  and 
Line  to  Europe,  vvhich  was  abandoned  after  the  successful  submergence  and  oper- 
ation of  the  Atlantic  Gable. 

In  May,  1867,  it  was  decided  to  establish  a  sinking  fund  to  provide  for  the  bonded 
debt,  and  the  sum  of  $'20,U(>0  per  month  has  since  been  appropriated  to  that  object. 

Up  to  December,  1868,  the  sinking  fund  was  invested  in  the  bonds  of  the  com- 
pany, which,  as  fast  as  they  were  purchased  for  that  account,  were  cancelled. 
c>tnce  that  date  the  Executive  Committee  have  been  authorized  by  the  Bo^ird  of 
Directors  to  invest  the  sinking  fund  in  the  stock  of  the  company,  when  it  can  be 
purchased  for  one  half  the  market  price  of  the  bonds. 


BTATKMnrr  of  sihkiko  fund  acoodnt. 


$488,600  Western  Union  bonds  of  1875,  pnrchssed  and  cancelled . 

2.008  Bhare»  Western  Ijulon  stock....    

balance  uninvested 


$418,971  80 
7S,351  76 
29,776  64 


$581,000  00 

At  the  annual  meeting  of  the  stockholdere,  held  July  8, 1868,  the  following  by- 
law was  adopted : 


312  COMUKBOIAL  OHRONIOLl   AND   BBYIKW.  [0  CfoifT 

<*  The  Board  of  Direeton  may  hire  or  parchiee  the  linw,  or  parehiM  tIboA  of  taj 
other  telegraph  oompaoy ;  but  netlher  the  capital  stock  oor  the  bonded  debt  of  the 
company  shaft  he  iocreased  beyond  the  amooot  now  authorised,  except  by  the  wiit 
ten  coDseot  of  two-thirds  of  the  directors,  entered  in  the  secretury's  records  ef  pn- 
ceediogs  of  the  board,  and  by  a  yote  of  the  stockholders  holding  a  majority  of  tlie 
capital  stock,  at  an  annual  meeting,  or  at  a  special  meeting  called  for  thiat  parpoes.' 

fiTATncXMT  or  MBT  IMOOXI  WROU  JOLT  1,  1866,  TO  JULY  1, 1869. 

i0fm.  188T.  ins. 

July $1B1,S10  67  «1T&.I»  86  $»^8il» 

AngilBt 101,87466  194,70668  »6.ai9 

Bep*ember. S58,<[>S3  96  »«6«907 »  fl5N«I» 

October 979,983  94  9S^876  8i  9i>9.1V7M 

November 948,597  86  91SSd4  09  9a<»» 

Dectmber 949,874  99  196,843  £4  iHLmi 

188T.  IbOS.  180. 

January 939,465  89  179,347  98  9SS,413S 

Fcbrnary 168,8«4  51  954,8<7  80  «e,M» 

March 988,666  07  S6S,014  59  SOSNS 

April 994,716  89  945,907  87  9]S,96S  IS 

May 198,603  11  948,909  06  903,«3R 

Juno 170,663  66  9M,SS5  60  9».4a4S 

Total $9,694,919  78     $9,641,710  88    ^^801,46746 

Ket  profits  for  three  years,  ending  Jaly  1, 1869 $8,0iS,4SI«S 

Miecellaneoiia  proflfa lt(s^lS4( 

Balance  on  bana  July  1,1886 ^ n3»>i 

Total $84;9.4T4  44 

DisBUEsnfuna  ov  nbt  raonra. 

Of  the  above  net  earnings  there  has  been  disbursed  for 

Conitrnctionofnewllnea ^^m $i,938.8mi 

Parchnee  of  tel^taph  property <94.ttl  63 

Bedempiion  ot  bonds fil6,t»(0 

Parcbtee  of  real  estate.. , 44,SlO 

Inteiest  on  bonds 94n^^« 

Binkingftind....     ,. 5»,c<»a 

Divldnds 4.0a5«« 

Mlaceil&neoaa -  ..^.  t4,fi843 

Balance  on  hand  Jnly  1, 1869,  as  follows : 

Dne  Irom  Russian  Kxtenelon  Company $997,839  61 

Bnppliea  on  hand  nndietrlbmed 171,(107  69 

Cash »,758  03 

: $42,S5Si 

Total Si5!iM44 


COMMERCIAL  CHRONICLE  AND  REVIEW 


Monetiry  Affairs— Rites  of  Loans  and  Dlpconnto— Bonds  sold  at  New  York  Stock  Exchmet 
BoHrd— Price  of  GoTernmeot  Secaritics  at  New  York— Coarae  of  Cooeols  nnd  AceriaB 
Secnltles  at  New  York— ( 'pening,  HIgbe«t,  Loweft  and  Closing  Prices  at  the  New  Tors 
Stock  Exchange— General  Movement  of  Coin  and  BnlUon  at  New  York—Coofve  of  Gat 
at  New  York— Coarae  of  Fore  gii  Exthaoge  at  New  York. 

September  was  distioguisbed  chiefly  by  derangemeDts  lo  the  mooey,  stock 

BDd  gold  markets,  attendant  upon  the  gold  panic     Very  fortanate!y»  the  crisis, 

though  convDlsiDg  every  Wall  street  interest, was  felt  comparatively  little  oatnde. 

In  the  local  grain  market,  there  was  a  brief  partial  iDterruption  of  business,  with 

which   the  Western  markets  sympathised;    and  in  the  nierchandise  markets 

there  was  naturally  a  brief  halt  among  buyers,  to  see  what  might  be  the  rmlt 

upon  holders  of  goods ;    but  no  cases  of  embarrassment  occnrred  in  soy  of 

tbe.«e  branches  cf  trade  ;    but,  on  the  contrary,  the  merchants  were  fjood  to  be 

the  first  to  come  to  the  relief  of  the  distressed  financial  interests,  by  the  free  pai^ 


1869]  OOMMXROUL    OHROKICLE  AND    RETIEW.  313 

cbase  of  Becarities ;  tbeir  iQleryention  haviog  cheeked  the  panks  and  prevented 
it  from  spreadiDg  disastrously  over  the  general  commerce  of  the  coaotrj.  No 
stronger  evidence  than  this  coald  be  afforded  that  the  commercial  interests  are  in 
a  sound  and  healthy  condition  and  that  the  panic  was  purely  specolative  in  its 
origin,  scope  and  bearings. 

The  money  market  has  naturally  sympathized  with  the  bold  and  demoralizing 
flpecolation  in  the  Gold  Boom.    At  the  beginning  of  the  month  the  scope  of  the 
clique  movement  in  gold  was  understood,  and  the  apprehension  that  it  might 
result  in  great  escitement  and  derangement  kept  the  money  market  in  a  con- 
stantly feverish  state,  with  moch  irregularity  in  the  rates  of  interest.    This  feel- 
ing was  intensified  by  the  efforts  of  brokers  to  break  down  the  price  of  stocks 
and,  if  possible,  occcmplisb  the  failure  of  a  large  stock  house,  whose  suspension, 
it  was  calculuted,  would  malerially  help  iheir  scheme;  and  this  attempt,  no 
dobt,  contributed  very  much  to  the  weakuess  of  Lockwood  &  Co.  in  the  panio 
under  which  they  succumbed  at  tho  close  of  the  month.    The  crisis  was  attended 
with  the  failare  of  six  or  eight  stock  houses,  most  of  them  in  good  standing  ; 
while,  in  the  Gold  Boom,  several  failures  have  been  reported,  and  many  firms 
have  been  thrown  in'o  a  condition  of  temporary  suspension,  until  the  immense 
gold  transactions  of  Friday,  the  24th  nit.,  can  be  settled.    The  rates  of  interest 
have  been  determined  less  by  the  supply  of  money  than  by  the  degree  of  distrust 
both  in  securities  acd  borrowers.    To  the  class  of  borrowers  upon  Government 
collaterals  money  has  been  accessible  at  7  per  cent  io  currency  to  7  per  cent  in 
gold ;  but,  for  the  last  week  of  the  month,  ordinary  borrowers  have  had  to  pay 
upon  Etocks  rates  ranging  from  ^©1  per  day  upon  low-priced  shares,  to  1®4 
per  day  upon  high-priced.    There  has  been  a  considerable  demand  for  money 
trom  the  West,  and  at  the  openiog  of  the  month  some  liberal  amounts  were  sent 
alEo  to  the  South.    The  exceisive  scarcity  of  small  notes,  owing  to  the  Treasury 
having  taken  them  in  preparatory  to  a  new  isHue,  h.s,  however,  prevented  this 
demand  being  fully  n  et,  the  result  being  favorable  to  the  reserve  of  the  city 
hanks, 

I'be  market  for  Government  bonds  has  been  leas  affected  by  the  crisis  than 
might  have  be<n  rxpected.  The  remarkable  steadiness  of  bonds  abroad  has 
htlped  to  sustain  pi  ices  here,  although  at  brief  periods  there  has  been  a  margin 
or  3(^4  per  cent  in  favor  of  the  shipment  of  bonds  to  Europe.  Prices  fell  at 
one  time  4®5  pe-  cent  below  the  openiog  quotation? ;  but  this  was  no  more 
than  was  naturally  required  by  a  iall  in  gold  to  130(^133.  Some  co[»ideraole 
amouot-)  of  bonus  were  thrown  on  the  market  during  the  panic,  to  employ  the 
proceeds  in  the  puichaae  of  stocks  at  the  very  low  figures;  but  this  supply  has 
peibaps  not  been  more  than  Fufficient  to  cover  the  liberal  purchases  of  the  Gov- 
ernment, which  were  increased  to  $3,000,000  on  the  25th  and  $3,000,000  on  the 
29ih,  as  a  mtaos  of  checking  the  panic  io  the  money  market. 

BONDS  BOLD   4T  THE  N.  T.  STOCK  SXCHAM<1I  BOARD. 

Clasica.                                                           isns.  1809.  Inc.  Dec. 

U.S.  bonds $2S,89a,lB0  $15,8a4,90O        $ $8,557,850 

otJ.tc  &  city  bonds 10,05S,0(J0  6,lf>6.500             4.Hi2,60a 

Company  boud* 1,638.800  l,tOO,OOJ             858,800 

^,    Totol— September.  . .  $85,608,450    $91 ,800,400  ~     $18*808^ 

biacfl  January  1. 158,865,440     856,415,109    $97,649,669         


314  OOKHBROIAt    OBKOMIOU  AHS    RZTIBW-.  [0^^, 

The  itilj  olosiDg  prices  of  tbe  priaeipal  OoTenmieDt  Becaritin  »i  Ux  Se« 
York  Stock  Bichange  Board  id  tbe  mooth  of  Bcplember.  ai  repMHoted  b; 
tbe  Uteat  sate  officially  reported,  are  ahowD  in  tbe  rollowiDg  Btalemeiit  i 


DiTOl  ^^a, IBSI.-., fi.  (MO  jH-lConpiai  .n.lMi. 

—"""•  '^-~     =—     leU.  13U.  IStii,  new.  W.       ■«.     C^t 

l*3«  lilK  mjf    IWK 

- m       m       1UI<  lU  UIK    .    ..    UIH 

■ ua     IK  isijt  iMji  i«x  ]"K  unx  lllX 

* JMK    1«N  IM  mit  l»iM  "IJ*    ■■■  .   11* 

• IKK    i»ax  !*»«  l»'«  l«K  l«K   «W   IMS 

1 IIIK    IltK  11  ISJM  IMIt  1»M    IMY    lUX 

» iw      Ui)(  laiK  ims  iiBK  ii»j*  iw«  111 

■ iiojf   Ill  110  iiuM  tiu  i<t}i  laa  i« 

10 U*       IWK  1«1W      ....  11«3<  IIVX    IIM 

11 iiiK  i>ij«  m2  ...  -  i»«  i«)*  .       iiwi 

18 «!«    191  iw  iMK  ii»,\  lias  WW  iiwr 

M IIIX    IM  111  ItlM  11«K  1«       il>^ 

IS mx  itix  in  iiiif  iiBM  itOK  1)0     iiojk 

1« IIIK    lUM    ISA  IWK  ll*lf  IM       lUM   11* 

n !>'-}£  iMN  ix\  1914  ]i«w         imt 

IB 191     iiox  isi;<  iwS  now  iiiM  u»(  mx 

ID m  llOi<  l«l  llS-i  ll»K   llSii   >0>K 

11 150X  1*1  118«  11»«    V*\ 

M JMH    ISIX  IMX  IMX  I "~' 

U lK>i    mn  130  1" 

H. u.>X    11)^  iieX 

a7.';."!;;!',!;',i'"l^l""!!!!^!**  JiT"  ii» '  ui«  nax  iioji  iiT«  li^x  '.'.'.'.!  inw 

W 119X    iWM  19  tiux  i:t  iiTX   ins  1*^ 

m i»x   HUM  iiBX  ii'-K  >ioK  I'Bh  iiT    inx 

«l ILSX  IIBX  inu  UTX    

nm in     i«3M  itsK  i«»  wtf  mx  i*iw  i*ox  ii*k 

HlgbMC lU      lUM    IWM  l^X  1"X  lllX  1»H    ittX  ll>H 

Lowut iia      118      iisx  kbx  iieit  n~x  iiSK  i"     )«K 

loit.. ii>M  ii>     119X  iisM  lUX  inn  UTji  m    uuf 


Tbe  eictlement  ia  the  stock  matbet  haa  amoaoted  to  abaolnte  panic.  Speei' 
laliTe  brokera,  eccId;  a  timid  feeli  g  amoog  tbe  banks  and  ia  the  market  gW- 
rallj,  growing  cot  of  the  prospect  of  a  threatealDg  coroer  in  gold,  begto  nrif 
in  tbe  moDtb  lo  astaall  ibe  stock  market  nitb  mncb  vigor,  aod.  there  being dmk 
wbo  cared  to  resist  tbem,  etuclcs  decliaed  hearily  throo^hoat  the  list.  Sioieof 
tbe  large  hoL'era  being  thus  weikened,  the  marliet  tbe  more  readily  yielded  udet 
the  general  wreck  of  confidence  growing  oat  of  tbe  calmiDatioii  of  the  grwl  p)U 
cpccDiatioD  OB  tbe  a4th,  and  p-icea  fell  to  ao  fxtenl  ranging  batweea  6  per  rsil 


18S0]                         OOHHIKOIAL    OHROHIOLK  AND    KMVUW.  SIS 

oo  Be^idtBg  tai  53  p«r  cent  oo  New  York  Oeolrftl.    The  u'ent  of  ibe  fall  maj 

bs  judged  !tam  the  followiDg  compariaoD  of  the  higbeat  and  loweBt  prices  ol  some 
leadiag  bUmIu! 

Blgb-    Low- 1                                                         BIgh-  Lo  w 

PadDcHiU s<i!^      MM    Chicago  *  Nonbweal'B fioM  es  ' 

New  York  Cenlnl Wfl        IM     I        do  oo       pnl 


ludfonRlTtt 1K6X      ISi 


PiiH.  *rorlW»niB eii\ 


KeBdlng WJ  M     |     do       prof        

Mlchtcan  Bonthern. 1Ij6M       K       Ohio  A  &iei)l<tilppl.... 31i|(       M 

CisTBiaDdAPilUlnirg 113  SI     |  Toledo  A  Wab«li 83  U 


The  great  feetqre  or  the  moatb  has  been  ihe  eitranrdiDarjBpecDlatioa  in  gold, 
DDder  wbicb  the  price  »a<  raa  ap  from  133}  at  the  opeoin;  to  162}  on  the  24tb. 
Un  the  latter  date  the  Trea^arj  came  i.  lo  Ihe  rnarbei  ivith  propoea's  to  erll  oo 
ibe  foliowiog  ila;  &4,01>0,(I0 1  of  cnio ;  nilh  the  rennlt  of  breakiug  down  Ibe  price, 
witbin  a  few  mioJle?,  to  13  i.  Amid  the  pxc  if  mini  of  ibe  enormooa  traDsuciiona 
of  the  24lb,  tran^aclioaa  wire  made  involTiDg  eDonnoua  laMa  10  derhr''.  Some 
ofthe-iewere  repudiaied  ;  upoD  olbeta  tbe  parlies  Tailed  ;  aod  oflhe  remuiiiderr 
coTeriog  man;  millions,  ibtre  lemuiued  at  ibe  cln  e  nf  the  mootb  n  large  amuaat 
unset  lied.  AmM  IhecoDlnsion  r<snltii'^  rroni  tl.ecalmiDulion  of  IbeBj  ecalutjoD, 
tfae  Gold  Exchange  Bank  became  invoiied  sntipeDiled,  nod  wee  thrown  into  the 
handaof  a  leceiver,  large  amouDla  of  the  foods  ol  dealers  beioR  in  that  wu;  lied 
ap.  The  experieoce  or  ibe  mooth  tea  hea  a  sjiI  lesjoo  of  Ibe  demorelization  of 
gold  epei Illation,  and  ie  Ubel;  to  tell  bcrealter  npon  the  eicea^'es  of  Uuld  Room 
operation?! 


■a  Htock  Exchuga  aod  tha  NMlonal  Slock  B»eb»BB». 


dl6                              COUMEftOIAL  CBRONIOU  AND  BKTISir.  [OcUAtfj 

The  followioir  table  will  ebow  the  openiDg,  highest,  lowest  and  dotti^  prion 

01  all  the  railway  and  misoellaDeooa  secarities  eold  at  the  New  York  Stodk 

Exchange  dariog  the  montha  of  Aognst  and  September,  1869  : 

f         mm  i^ngnrt^ '          ■  t  Hi  irtamlMif          i 

iUlIrottd  Stocire--                                ^P^-  ^if^  I^w.  Cloa.  Open.  bi^t.  Low.  Clok 

Alton  &  Terre  Haot. w        M        88        Kji    

««  ''         '*     pral 69         5e68fi066MMM 

Chlcaso  ft  Alton 168       168       158      155  IMli    154^   135      1« 

do            do  j)ref. 16^^    1«^    156       ]56  155       156       136      IS 

Chicago,  Bnrl.  ft  qnincy 195       SOU       IMJi    IMJi  ITU       170       160      Ift 

do       ftNorthweBOn       84        9i)i     83K     ^%  MK     ti6«^     68       lO^ 

do                   dopref S6X    101         93X     W3i  1HH     95        T9       S 

do       ft  Rock  Island 114^^    ll^^jl^    1143C    1143^  115       1153^    101      im 

Colainb.,ChicAlnd.  C 87        87        Si        85  83^     84        MJtf     S 

Clev«.  ftPittsbara. 307^    108^    104       lOtfJ^  lOSl       119        88       K 

do    ColMCin.  ftiDd 78^     88        7S.V     79  78        T»        73       UK 

Del.,  Lack  ft  Western 119      118       lUX   H^H  119,V   US      ^^H  ^^X 

DubuqneftSioaxcity 1U4X    US       104X    119  HI       111       104      1.6 

Brie •  • •>••  87        49        87       81 

do  preferred 70        71       673^      tn]( 

Harlem 161       167       160       160  160       160       Ui      W 

Hannibal  ft  St.  Joseph ^..  1)6^    ISl       19t       195  195       196         99      107 

do                do  pref. 1^       198X    190       191  198       )98         97       97 

HndsonRiyer 187       18SX    1791i    15*  ^^%    185X    184      154^ 

Xllinois  Central 149       149       1393^    19»X  139       l^H    184      lU 

JLake8ho.ftMlch.Soath 106      1099^    104X    105K  101       lOSJ^     TSy    89^ 

Mar.  ftUincln.,lBt 2999998990909090 

''       9d    "    9          9          9          9  8K      83^         8         8 

Hicblfiran  Central 189^    1»9K    198       199  19v       181       116      118 

Milwaukee  ft  St.  Paul 79        84;i     78        79V  79)^     60X     d       M 

do                dopref. 89jl^     99K     86)^     87S^  87K     89ji     75       80 

Morris  ftEsaex 885^     WiH   ^H      ^)4  83        88y     fftH    ^ 

Vew  Jersey ^ 193       198       198       193  ]93i^    18)^    ISO      190 

do        Central 109       109K    109      1073^  10  K    1073^     97      I'O 

NewHayeDftHart/urd 289      939       989      981 

^ew  York  Central 908^    9t95i    19^       199  9033^    9063i    158      itSS 

do        ft  N.  Haven.... 1393^    145       ISIJ^   140  140       140       185      1» 

do              do      scrip 198       140       198       185  130       280       ISO      130 

Norwich  ft  Worcester 119      119       119      119  119       US       119      111 

Ohio  ft  MiSBlBsippi 89jii     89;^      Zl%      893^  89X      89X     94       Hii 

Panama   970       970       980       980  940       951       910      9M 

Fltlsb.,Ft.W.  ftChlca..... 158)^    1543^    1513b    151)4      

do              do        gnar S»3«      90         88^     8SX  893IC     89SC     ^       W 

Reading 97        98        95itf     963i  9734     91^     91       »>K 

Kome,  W.ftORdensVg 1003^    1C03^    1003^    1003^  105     110      106      100 

1'hird  i^yenne IBS     186      186      U6 

Toledo,  Wab.  ft  Western 74        88        74        88  883^     8S3i     50       S^ 

do        do        dopief 74        87X     74        85  88         88        80       90 

HlBceQaneoas-* 

AmcticauCoal 40        40        40       40 

CentralCoal SO        60        iO       00 

Cumberland  Coal 84        85,V     88        88  SIX     813^     98       9S 

Wilkdbane  Coal 65         65         65         65  

Del.  ft  Hud.  Canal 197       198       196       186  1953<    196      199      UO 

AtlanticMall 9»H      993i     993^     ^^ 

PaciflcMail 84^     87         79        H)  80         80X     593^    C^X 

Boston  Water  i'ower 15        15        13K     l^H  15>^     IS        13       13 

Canton 5^^     68^         68     58  56         £6        CO       M 

Mariposa 8          8          8          8  8         103^      8        0 

do       pref 16         16        103i     19  193^     19        193^    U 

Qoick»iWer. 16        16        14        15  153^     15J^     19       U 

Vveet.  Union  Telegraph 83        89        87        873^  87^     Vl%     »       » 

CitizmsGaii 150       ISO       150       150  160       150       150      130 

Hankers  ft  Brokers  Asa. 109       110       1083^    1083^      

UnionTrust 150       lOO       ISO      150         

AmfncanM.Cnlon 4l3tf     493<     f63^     86  85        38        80       »SC 

Adams - 593^     593tf     56        b^X  ^H     VtH     «\'    W^ 

UuitedSUtes 6fli»      693i     6*)^      635i  63         63        60       « 

MerchaDt/s  Union 10        11        10        11  liy     113^     11       11 

Wells,  FarRO  ft  Co 91         99        13>t      19  18        19        16       It 

ForcigD  exchange  has  been  very  irregolar,  owing  to  the  demoralisiog  speco- 
lationa  in  gold.    At  one  time,  p  ime  backers'  GO-days'  eterliug  bills  coold  not  be 

8old  CD  the  street  at  better  than  102 ;  on  the  breaking  np  of  the  fipecolatijo,  tbe 
price  quickly  advanced  to  107^. 


18G9] 


07  BAHKIETO,   OURRINOT, 


rUdaler.  M.  banco. 


6ai!i(®51M5i    40    ©10)4    18    aiTBX    MX085«    • 


Sept.,  isea iaa>t&io»n  mo  a 


JOURNAL  OF  BANKING,  CURRENCY,  AND  FINANCE. 


BstnriH  of  the  Sew  Tork,  PhUadelphl*  and  Boaton  Buiks. 
Below  we  give  the  retarna  of  the  Banks  of  the  three  ciiies  siace  Jbd.  1 : 

D(t«.  Lolnl, 

Juuarj  9....tlS».U90.a]T 
JsDurjS....  XS.TIH.Bai 
Jarnurj  le...  MS,SS8,S31 
Juuir  SS...  M4,l»4,«:s 
JinnaiT  BO...  KS.m.lOB 
Febnurr  e.  .  l«.MI,'73t 
Febnury  IB.,  SM,S80,*yr 
Febrnat7%)..  Ma.ll^ce-i 
Ftfarnarj  ST..  SBl.SH.BBT 

Mtrcba K3.039,8as 

Much  13 Ml.iiW.SeS 

Mircb  to Mioes.sn 

March  17 SU,go9.II8S 

April    a Ml,983,n9 

April  10 >»I.lsa,«T 

April  IT »9,1M.8S1 

AprUai lS7,«!<,in4 

lt»T   1 «eU.43B,1S0 

Uaf  a iaS,4B«,STS 

Ha;  IS im.m,«rt 

Uav» nD,l7K,U3 

Ma;  IS )T4,1iaiS,4ai 

June  fi na.MR.BOS 

Jane  II 1Tl,»S»,Tie 

June  10 Ml.Ul.BOa 

JaneUt MW,4«l,-nil 

J..1T3. iaU«8,4Tt 

JalylO XH,4M<M1 

Joiyir. mi,OBaj>sa 

jBlyi*. H9,Ml,SSa 

Jciyfli itajao,iu 

Aaga«IT. »U^!9^1 

Aagamt.....  MB,KIB,SCS 

Aiurd*t91 MTlt,lSS 

ADguet2S.  ...  Il:,(>»,10t 
HepLembcr  4.  MU4»3'dl 
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T  a  i^. 


MERCHANTS'    MAGAZINE 


AND 


COMMERCIAL     REVIEW' 


^^f^0^^^^0^f^^0^m0^m^t^^^^*^^f^^^^m 


NOVEMBER,     186  9. 


THE    INDEPENDENCE    OF    CANADA* 

BY  HON.  L.  S.  HUNTINGTON,  Q.O. 

In  England  it  is  the  custom  for  public  men  to  seize  the  occasion  of 
great  gatherings  of  the  people  to  address  them  upon  public  afiairs.  I 
humbly  invoke  that  custom  and  your  kind  forbearance  while  I  address  to 
you  some  observations  upon  what  I  consider  the  great  question  of  the 
day.,  I  made  some  remarks  in  the  same  sense  in  Parliament  at  its  last 
session,  and  was*  honored  with  a  great  deal  of  unfriendly  criticism,  and 
1  am  sure  you  will  forgive  me,  if  I  improve  the  firat  favorable  occasion 
for  restating  my  opinions  with  some  arguments  in  their  support.  1  may 
premise  that  there  is  neither  disloyalty  nor  indelicacy  in  bringing  to 
your  notice,  a  subject,  which  deeply  interests  this  country — which  has 
been  discussed  both  in  our  own  and  in  the  British  Parliament — and  gener- 


*  An  addreM  delhrerad  in  SapCombar,  1809,  befbn  flw  AgxioQltai«lSooi«ty  of  tlit  Oonntjof  Xinl- 
quoi,  at  BedfSord,  Canaida. 

1 


820  THK  ZVDXPXHDXHOS  ov  OAiTADA.  [Nwsmkr, 

allj  by  the  Press  in  both  countries — and  which  I  firmly  believe  is  the 
oeoessary  complement  of  the  great  scheme  of  confederation  we  hsTe 
accomplished.    It  is  true  that  in  mj  humble  way,  I  opposed  that  scheme 
in  great  part,  because  I  was  timid  about  the  early  assumptioD  of 
sovereignity,  which  I  thought  I  foresaw,  then,  must  follow.    I  stated  In 
my  place  in  Parliament,  after  the  coalition  of  '64,  that  confederatioD,  if  it 
should  really  prove,  what  its  promoters  pretended,  an  antidote  to  annex- 
ation, was  the  first  step  towards  the  independence  oi  the  country.    Bot 
opposition  was  useless,  for  confederation  was  the  policy  of  the  empire; 
and  imperial  influence  is  always  to  powerful  for  Colonial  dissent    I  ban 
accepted  the  situation  in  its  fullest  sense,  as  faithfully  and  loyally  as  if  I 
originally   promoted  it.    But  the  first  step  having  been   taken,  I  see 
dangers  in  delay,  and  I  believe  it  is  expedient  to  take  measures  for  the 
severance  of  our  present  relations  to  the  Empire.    This  is  a  momentoos 
step  and  requires  grave  consideration.  It  must  create  differ^ioe  of  opinioo 
and  the  broadest  tolerance  should  be  accorded  to  discussion.    I  propose 
to  speak  candidly  and  dispassionately.    I  have  no  party  battle  to  fight 
nor  personal  preferences  to  gratify.    Holding  strong  opinions  as  to  the 
future  of  this  country,  I  submit  them  frankly  for  the  verdict  of  mj 
•countrymen.    Sooner  or  later  the  weight  of  opinion — the  majoritj-- 
must  rule.    I  am  prepared  to  accept  the  decision  and  loyally  abide  bj 
its  consequences.    Such  service  as  I  can  render  will  be  cheerfully  ren- 
dered,  whether  my  country  remains  a  province  or  becomes  an  Independ- 
ent state.    And  I  profess  and  feel  profound  respect  for  those  who 
honestly  dread  the  great  change  we  are  discussing. 

Foremost  among  the  barriers  to  our  progress  towards  a  nationslitj, 
is  that  noble  sentiment  of  loyalty  to  the  British  Crown,  whidi  has  so 
generally  and  so  happily  subsisted  among  the  great  masses  of  our  peq>Ie. 
Can  we  forget  our  noble  Queen  ?  Can  we  dissociate  ourselves  firomthe 
glories  and  the  traditions  of  the  Empire  ?  British  Citizenship  is  no  idle 
word,  and  what  could  we  create  for  ourselves  to  surpass  it  ?  For  e 
century  past  the  affectionate  colonial  eye  has  rested  from  a&r  upon  the 
British  Throne,  as  the  centre  of  power,  protection  and  glory.  We  hsre 
venerated  the  Old  Land,  with  a  far  off  colonial  adoration, — ^we  hs^ehor 
rowed  her  thoughts,  leaned  upon  her  opinion,  and  conscious  of  theplenti- 
tude  of  her  efiulgence,  we  have  been  proud  to  shine  through  her  reflected 
light.  England  has  been  the  land  of  our  dreams ;  even  distance  lent  her 
enchantment  and  Englishmen  to  us  were  a  superior  race.  We  hive  been 
proud  of  the  Old  Flag ;  not  indeed  feeling  under  it  an  equality  with  the 
Sea  Kings,  but  assured  of  its  protecton,  in  the  listless  life  of  dependence 
which  colonists  lead.  We  knew  if  great  danger  should  threaten,  thst 
Flag  would  float  over  vb,  stayed  by  an  arm  stronger  dian  ours,  whidi 


1869]  THX  XMBEPXKDXNOX  OV  0  AVID  A.  821 

we  could  not  control ;  and  that  ours  would  be  neither  the  duty  or  glory 
of  upholding  it.    But  dependence  begets  trust;  and  to  confide  in  a 
generous  people  is  to  admire  and  love  them.    Can  all  this  trustfulness, 
this  affection  and  loyalty  be  torn  ruthlessly  away?     It  deserves  at  least 
respect  and  tender  treatment.     But  it  might  not  be  wise  to  jeopardize 
the  great  future  of  our  young  country,  for  the  sake  of  even  so  noble  a 
sentimenti  as  the  Hindoo  widow  sacrificed  her  life  upon  the  funeral  pile. 
Governments  in  our  time,  are  ordained  for  the  prosperity  of  the  people 
and  if  it  can  be  shown  that  the  virtues  of  self  reliance  and  national  Man- 
hood— habits  of  original  thought— a  condition  of  equality  with  the  nations 
of  the  earth — an  immense  preponderance  of  material  advantage  may -be 
safely  and  permanently  secured  by  a  friendly  change  in  our  relations  to 
the  Empire ;  perhaps  loyalty  to  the  Dominiou  might  come  to  over^ 
shadow  the  wide-3pread  sentiment  of  loyalty  to  the  crown.    The  child 
nestles  with  fond  dependence  to  the  parental  heart;  one  by  one  his 
habits  of  self  confidence  are  acquired  as  childhood  merges  into  youth  or 
manhood  approaches.    When  at  last  the  age  of  majority  is  reached,  filial 
affection  is  not  quenched,  because  the  days  of  dependence  are  over.    Nor 
could  we  plead  the  tenderness  of  the  tie  as  an  excuse  for  perpetual  child* 
hood.    It  is  from  such  a  point  of  view  that  the  London''  Times  "  speaks 
of  Canada  as ''  The  eldest  son  of  England." 

But  there  are  those  who  believe  that  the  Independence  of  Canada  would 
conflict  with  the  Colonial  policy  of  the  Empire,  and  who  taking  their 
inspirations  from  the  traditions  of  the  past,  make  England's  glory  to 
consist  in  the  vastness  of  her  colonial  possessions.  The  motto  of  "  Ships, 
Colonies  and  commerce"  belongs  to  an  age  that  is  past,  lis  mention 
summons  the  ghost  of  the  old  act  of  Navigation,  and  the  celebrated  29 
Acts  of  Parliament,  for  the  maintenance  of  a  Commercial  Monopoly — 
*^like  melancholy  ghosts  of  dead  renown."  It  was  a  system  of  obstruc- 
tion and  restriction  to  Colonial  enterprise,  in  which  the  Colonists  were 
regarded  as  mere  contributors  to  the  wealth  and  glory  of  the  parent 
State.  Freedom  has  made  rapid  strides  in  England  since  those  daysy 
political  economy  has  been  remodeled,  and  political  arithmetic  has 
achieved  new  systems  of  calculation.  England  did  not  find  that  the  loss 
of  her  original  American  Colonies  dwarfed  her  industries,  crippled  her 
I  commerce  or  blighted  her  prestige  as  a  nation.  They  have  grown  to  be 
a  greater  people  and  more  profitable  customers.  The  young  Colonies 
Relieved  from  the  restraints  of  tutelage  espoused  great  principles  and 
pheld  them  thus  ensuring  their  own  greatness  and,  incidentally,  the 
evation  of  universal  mankind.  Englishmen  have  watched  with  a 
reful  eye  the  progress  of  their  kinsmen  in  the  untried  field  of  freedom 
d  equality.    Slowly  and  cautiously  they  have  copied  what  seemed  to 


322  TBB   INDBPEVDXNCB   UF   TAKADA.  (^JVofffOlir, 

be  success,  and  have  been  warned  of  the  distinctions  betveen  libertj 
and  license ;  and  thus  for  nearly  a  centur j  the  t«o  great  nations  fore- 
most in  their  devotions  to  the  principles  of  popular  freedom  ^nd  c>>DNti- 
tutional  government,  have  been  a  constant  example  and  encouragemeot 
to  each  other.  Sometimes  there  have  been  rivalries  and  estrAngetni'ot. 
Quarrels  among  kinsmen  are  oftenest  bitter  and  unreasonable,  but  the 
friends  of  peace  and  freedom  have  trusted,  not  in  vain,  to  that  palladijm 
of  common  principles,  which  both  peoples  have  cherbhed ;  and  thus  it 
has  happened  that  the  dismemberment  of  the  Empire,  which  the  match- 
less eloquence  of  Chatam  and  Burke  foretold  and  deprecated,  and  hooest 
old  George  the  Third  believed  impossible,  has  proved  a  great  C(»mmerciil 
and  political  blessing  to  England  and  the  world.  The  old  motto  meint 
afber  all,  nothing  more  than,  ^'  ships,  market  and  oommerce."  and  these, 
under  the  new  relations  of  the  colonies  have  been  multiplied  a  huo^red 
fold. 

Now  let  us  like  men  of  nerve  and  conaprehension  applj  this  lesson  to 
ourselves.  What  benefit  are  we  to  England  1  From  what  we  have  sees, 
it  is  manifest,  that  our  sovereign  independence  would  enhance  our  ovn 
growth  and  resources,  and  multiply  the  advantages  she  could  derive  tnwi 
our  trade.  The  commercial  argument  therefore  from  an  English  point 
of  view  is  against  the  connection,  and  tlus  is  why  our  enemies  affec:  to 
despise  it.  But  how  are  we  otherwise  useful  ?  Are  we  a  source  of 
strength  to  her  in  war  ?  Do  we  recruit  her  armies,  or,  failing  to  supply 
men,  do  we  pour  our  means  into  her  millitary  coffers  ?  We  do  not  eves 
afford  afield  for  the  political  patronage  of  die  British  administratioD <^ 
the  day,  and  there  remains  to  England  therefore,  but  the  doubtful  pre^ 
ges  of  nominal  rule  over  vast  American  possessions.  W  hat  wonder,  thi: 
]Snglishmen  are  growing  cold  to  this  advantage,  when  they  reflect  upon 
the  prodigalily  of  blood  and  treasure  it  may  one  day  cost  them  to  maio- 
tain  it  1  Faithful  to  her  glorious  traditions,  England  will  act  no  dishono^ 
able  part  towards  us  while  we  remain  a  portion  of  the  empire.  Her 
ofl  reiterated  prooaise  to  defend  us  in  case  of  war,  she  will  fulfill  with  tht ■ 
last  man  and  her  last  dollar.  But  the  obligation  is  not  the  less  >s^ 
embarrassment  because  it  is  binding.  And  the  more  far  seeing  of  her 
statesmen  for  fifty  years,  have  looked  towards  a  change  of  thi 

conditions  which  imposed  it.  Step  by  step,  in  all  the  noble  and  anpre^ 
oedented  concessions  they  have  accorded  to  us,  we  have  been  led  etc* 
tiously,  towards  the  paths  of  manhood  and  self-relianoe;  and  thejhiva 
explained  to  the  British  people,  ss  they  watphed  this  problem,  of  1 1^  I 
government^  growing  out  of  their  colonial  jurisdiction,  that  the  Coloniil 
State  was  not  what  Burke  called  it,  a  ^  perpetual  minority  "  but  m^i^ 
expand  into  sovereign  and  independent  powers.    In  the  great  Gon^^ 


1869 1  THB   INDBPBNDENCX   OF   CANADA.  323 

ation  debate  of  *65,  the  Hon.  John  Ililliard  Cameron  the|leader  of  the 
high  torifs  of  Upper  Canada,  declared,  in  denouncing  the  doctrines  of 
the  Manchester  school,  that  Canada  detive^  no  important  benefits  from 
her  connection  with  Great  Britain,  except  in  the  matter  of  defence 

Wit^i  this  honest  declaration  of  an  untainted  Conservative  chief,  I 
propose  to  open  a  brief  discussion  of  the  question.  What  benefit  is 
£n;;Iand  to  Canada  ?  I  speak  as  to  the  future,  and  I  am  not  unmindful 
of  her  cenerosity  in  the  past,  and  the  great  heritage  of  free  institutions 
she  hHs  bpqueethed  to  us.  These  were  our  birthri<;ht,  but  a  less  magnan- 
imous  provincial  policy  would  have  denied  them  to  us  as  Colonists. 
Sovproign  or  dependent,  Canada  will  cherish  for  all  time,  a  grateful 
memory  of  England's  gentle  and  benignant  rule  over  us,  while  she 
taught  us  the  lessons  of  constitutional  government.  For  aU  time,  too, 
wherever  our  great  populations  are  descended  from  her  noble  stock,  we 
sh^ll  cherish  the  pride  of  kindred,  shall  claim  our  share  in  the  glories  of 
her  literature,  her  martial  powers,  and  her  commercial  triumphs.  But 
these  rights  are  not  to  ns  nn  exclusive  heritage,  and  we  but  held  them  in 
common  with  the  descendants,  all  over  the  world,  of  the  great  Foster- 
mother  of  nations ;  and  I  am  enquiring  after  the  special  advantages  of 
the  connection.  These  are  not  to  be  found  in  our  commercial  intercourse 
for  here  we  are  lefc  to  compete  against  the  world.  It  is  not  that  her 
abundant  capital,  attrao.ted  by  our  loyalty  and  affection,  flows  in  upon  us 
because  we  are  a  dependency ;  todevelope  our  resotirces,  and  to  awaken 
the  hum  of  industry  along  our  shores;  for  that  capital  seeks  only  a  sife 
return  of  its  investments,  and  is  oftener  drawn  where  it  is  better  rewarded 
among  strangers.  It  is  not  that  the  prestige  of  the  connection  gives  us  a 
position  among  the  peoples  of  the  earth ;  for  our  powers  are  merely 
local  and  municipal,  and  bear  the  tnint  of  inferiority  and  dependence. 
There  remains,  therefore,  but  the  one  advantage,  and  we  end,  as  Mr. 
Cameron  began  for  us, — the  advantage  of  the  connection  is  narrowed  to 
the  solitary  matter  of  defence ;  and  we  shill  see,  as  we  proceed,  th  it  even 
this  is  of  doubtful  utility.  Defence  presupposes  attack,  which  we  have 
only  to  dread  from  our  republican  neighbours.  Rut  the  difRculties  with 
them,  are  always  of  an  imperial  character.  The  Trent  affair,  the  Alabama 
claims,  and  the  Irish  Fenian  quarrel  with  England,  were  all  as  foreign 
to  us  as  the  China  Seas,  and  interested  us  only  in  their  consequences. 
It  is  not  true  that  the  same  may  be  said  of  Liverpool  or  Dublin  for  a 
hundred  reasons ;  but  especially  because  they  are  part  of  the  British  Lies, 
and  are  represented  in  the  British  parliament.  We  have  no  voice  and 
cannot  influence  the  foreign  policy  of  the  empire.  There  is  only  for  ua 
the  duty  of  waiting  till  war  is  declared,  and  the  luxury  of  becoming  tha 
field  of  blood,  the  theatre  of  desolation.    Thus  England  would  defend 


324  THB  XNDKPXNDfiirOB  07  CANADA.  [Novtmher, 

ufl,  but  from  what,  but  the  consequences  of  her  own  quarrds  1    We 
have  no  occasion  for  dangerous  oontroyersy  with  our  neighbors  on  our 
own  account.    Our  interests  are  blended  with  theirs,  and  tend  to  mvtoal 
eomity  and  good  will,  and  the  dangers  of  conflict  will  be  a  thousand  fbid 
removed  when  British  entanglements  are  avoided.    This  fact  hss  beeo 
again  and  again  admitted  hj  British  Statesmen.     During  the  debate  in 
the  House  of  Commons  on  the  defences  in  1865,  Mr.  S.  Fit^enU 
declared,  that  if  Canada  were  independent,  there  would  be  no  cause  of 
quarrel  between  her  and  the  United  States.    That  it  could  beoolj 
through  a  desire  to  strike  at  England,  that  America  would  attack  ns. 
Canadians  had  not  permitted  the  Alabama  to  escape  or  preeipltatdj 
acknowledged  belligerent  rights,  and  there  could  be  no  cause  of  quarrd, 
except  that  she  was  united  to  England ;  and  his  belief  was,  that  if  Canada 
were  independent  to-morrow,  she  would  not  run  the  slightest  danger  of 
a  oontest.    Mr.  Cardwell  adverted  to  that  speech,  as  one,  agunst  whose 
tone  the  Government  could  make  no  complaint,  and  the  sentiment  was 
received  with  the  approving  bear-hears  of  the  House.    In  the  same 
debate  Mr.  Bright,  whose  views  haire  not  changed,  and  who  is  a  pova 
in  England  at  this  moment,  declared,  that  should  any  occasion  to  defend 
us  arise,  it  would  not  result  from  anything  done  by  us,  but  would  be  a 
war  growing  out  of  the  relations  between  the  Cabinets  of  London  asd 
Washington. 

It  is  true  that  in  case  of  war,  we  would  be  no  match  for  the  power  of 
our  neighbors.  But  our  dependence  would  be  in  the  right  and  in  tki 
comity  of  nations.  There  is  no  reason  to  fear  that  they  would  be 
aggressive.  Mexicj,  Cuba,  the  South  American  States  have  maintained 
their  autonomy  without  molestation.  And  besides^  as  Mr.  Cameron 
suggested  the  other  day,  there  would  probably  be  little  difficulty  In 
arranging  for  a  British  and  American  protectorate. 

It  is  to  be  regretted  of  course,  that  a  portion  of  the  American  press 
adopt  a  disagreeable  and  sensational  tone  upon  this  subject,  and  it  suits 
the  views  of  certain  journals  here  to  give  these  utterances  an  onnecessaiy 
prominence.  They  preach,  of  course,  the  manifest  destiny  of  anneiailoOy 
and  they  laugh  at  our  independence,  as  impossible  of  maintenance  for 
six  months  afber  its  achievement.  They  say  it  is  impossible  ^r  tvo 
peoples,  of  the  same  race  and  language  to  live  alongside,  without  tke 
absorption  of  the  smaller  by  the  greater.  This  is  mere  vapid  assertion. 
The  experiment  of  course  was  never  tried,  because  the  prescribed  con- 
ditions were  wanting.  But  what  did  these  people  preach  about  the 
Southern  Confederacy  1  Did  they  not  prate  loudly  of  her  power  to 
sustain  a  national  existence  1  And  though  she  failed  afber  prodigies  of 
valor  and  skilli  what  reasonable  man  doubts  that,  could  she  have 


1809]  THS  IHDXPXNDBKOB  OV   CANADA.  325 

achieved  her  independenoe,  she  might  subsequently  hare  maintained  it) 
Yet  the  South  was  far  behind  us  in  her  appreciation  of  freedom  and  the 
true  elements  of  a  nation's  greatness.    It  is  onlj  poor  Canada  which  is 
to  be  sneered  and  jeered  into  clinging  to  a  system  of  tutelage  and  inferi- 
ority for  ever.    It  was  not  the  fashion  to  disparage  her  resources  and 
poh  !  poh !  her  aspirations  when  the  Hon.  John  Brown,  in  his  Confede- 
ration speech  spread  out  the  map  and  invited  the  House  to  an  enthusi- 
astic study  of  her  magnificent  geography.     He  traced  the  island  of 
Newfoundland,  and  found  it  equal  in  extent  to  the  kingdom  of  Portugal. 
Crossing  the  straits  to  the  main  land,  the  hospitable  shores  of  Nova 
Scotia,  stretched  out  to  the  dimensions  of  the  kingdom  of  Greece.    New 
Brunswick  was  equal  in  extent  to  Denmark  and  Switzerland  combined. 
Lower  Canada  wa<^  a  country  as  large  as  France,  and  Upper  Canada, 
20,000  miles  larger  than  Great  Britain  and  Ireland  put  together.   Across 
the  continent  to  the  shores  of  the  Pacific  was  British  Columbia,  the 
land  of  golden  promise,  and  comparable  in  extent  to  the  Austrian 
Empire ;  and  then  the  Indian  territories  which  lie  between  were  greater 
in  extent  than  the  whole  soil  of  Russia.    There  were,  he  said,  in  Europe 
forty-eight  sovereign  states,  and  only  eleven  with  a  population  greater 
than  ours.    In  1871  we  were  to  stand  equal  in  population  to  the  ninth 
sovereign  State  in  Europe.    The  honorable  gentleman  further  told  the 
House  that  in  1793  the  commerce  of  the  sovereign  and  independent 
United  States,  their  exports  and  imports,  did  not  amount  to  one-third  of 
what  ours  did  at  that  moment,  and  there  were  few  states  in  Europe,  and 
those  with  vastly  greater  population  than  our  own,  that  could  boast  of 
anything  like  the  foreign  commerce  passing  through  our  hands.    And 
France,  though  the  third  maritime  power  of  tne  world,  owne  i  only 
60,000    tons    more  of   shipping  than   British  America.      Then   the 
Dominion,  whether  for  industry  or  defence,  would  muster  a  force  of 
70,000  seamen,  and  in  round  numbers  700,000  men  capable  of  bearing 
arms.     These  are  not  the  qualities  of  a  country  unfit  for  self-govern- 
ment and  whose  future  need  bear  the  taint  of  inferiority  and  depend- 
ence.    I  have  said  that  independence  is  the  natural  sequence  of  the 
theories  which  promoted  confederation.    Lord  Monck  alluded  to  it  as 
involving  a  "New  Nationality,"  when  he  first  referred  to  it  in  a  speech 
from  the  throne.     British  statesmen  have  invariably  discussed  it  as  a 
step  in  the  transition  our  institutions  were  undergoing.    The  events 
of  the  American  war,  and  the  attendant  possibilities  of  a  rupture  with 
tihat  country  forced  upon  the  attention  of  the  British  Government  the 
question  of  the  defence  of  their  possessions  on  this  continent.    They 
promoted  the  scheme  from  an  imperial  point  of  view ;  and  with  refer- 
ence to  immediate  relief  from  the  embarrassments  of  their  responsibili- 


826  T&X  ZHDXFXNDXHOS  OV  OAKADA.  [iVoMnkf, 

lies  here.  I  oftonot  better  express  my  view  of  the  atdtode  they  Asramed 
than  by  quoting  from  the  True  WUne8$  of  Mareh,  1867,  one  of  the 
best  written  journals  on  this  continent,  and  understood  to  be  an  OTgtn  of 
the  Lower  Canada  Catholic  clergy.  The  writer  says :  ^  We  ttoderstud 
that  the  bill  for  the  union  of  the  B.  N,  A.  Proyinces  has  been  npidlj 
carried  through  the  three  ridings  in  the  House  of  Lords.  In  all  proh^ 
bility  it  will  meet  the  same  fate  in  the  House  of  Commons ;  for  in  £c^ 
land  public  sentiment  is  very  strong  in  &vor  of  a  measure  which  is 
looked  upon  as  preliminary  to  the  severance  of  a  political  connection 
not  profitable  and  often  very  dangerous  to  the  people  of  Great  Britain. 
Some  changes  have  been  made  in  the  Quebec  scheme,  apparently  at  the 
request  of  the  delegates  themselves,  since  we  may  well  believe  that  i& 
the  Imperial  Legislature  the  feeling  towards  these  Provinces  is  a  desire 
to  gel  rid  of  them  altogether  as  honorably  and  as  speedily  as  possible. 
They  profit  Great  Britain  neither  materially  nor  morally.  •  ♦  ♦  ♦ 
All  that  remains  for  Great  Britain  is  to  get  rid  of  her  North  America 
Provinces  as  speedily  and  with  as  little  loss  of  moral  prestige  as  possi- 
ble. The  so-called  Confederation  of  these  Provinces  presents  the  mean 
for  accomplishing  this,  and  it  is  therefore  eagerly  grasped  at  by  m^  of 
all  parties."  There  is  no^  doubt  that,  more  or  less  directly,  soch  Tiews 
were  urged  upon  our  delegates  while  the  negotiations  were  proceedii^ 
in  England.  Indeed  so  determined  were  all  parties  there  to  hurry 
through  the  arrangement,  that  the  most  solemn  remonstrances  of  ita 
colonial  opponents  were  treated  with  almost  universal  and  contumadom 
neglec**.  And  the  views  of  the  statesmen,  as  might  be  expected,  are 
quietly  reflected  among  the  people  of  England.  All  the  organs  of 
opinion,,  the  popular  Times^  the  Radical  &tar  and  the  Tory  Standarij 
the  stately  Saturday  Review  and  the  snobbish  Pall  Mall  Gazette^  with 
their  satellites  all  ovn  the  kingdom,  adopt  the  same  tone ;  either  that 
Canada  is  an  incumbrance  to  England  or  they  are  ready  to  promote  her 
independence  to-morrow ;  and  every  colonist  with  whom  you  speak  and 
who  has  had  the  entre  to  British  society  will  tell  you  that  the  same 
feeling  pervades  the  British  mind.  Adam  Smith  wrote  that  no  domi- 
nant country  could  ever  voluntarily  relinquish  its  power  over  a  depend- 
ency. But  he  regarded  the  abandonment  in  the  light  of  a  sacrifice,  and 
in  our  case  England  has  already  abandoned  all  the  patronage  which,  i& 
his  view,  was  a  temptation  to  retain  dominant  power.  But  Mr.  Corn- 
wall Lewis,  who  wrote  later,  and  afler  modem  colonial  views  began  to 
permeate  England,  regarded  as  probable  that  a  parent  state,  deriving  no 
advantage  from  a  dependency,  and  believing  that  the  dependency  was 
able  and  willing  to  form  an  independent  state,  might  abandon  its 
authority  for  the  want  of  a  sufficient  inducement  to  retain  it.    There 


1869]  THE  DTDXPENDKHOX  OF  CANADA.  d2f 

migbt  even  be  positiye  reasons  for  a  withdrawal,  as  if  the  dependency 
contributes  nothing  to  the  commercial  facilities  of  the  dominant  country, 
it  is  a  source  of  expense  to  the  supreme  government,  and  may  involye 
the  dominant  country  in  war ;  and  he  further  says  that  if  the 
parent  state  understands  its  true  relation  to  the  dependency  it 
will  voluntarily  recognize  independence  when  there  is  fitness  to 
maintain  it;  will  prepare  those  for  independence  who  are  still 
unable  to  stand  alone;  and  will  seek  rather  to  promote  its  trade, 
than  its  Empire.  Englishmen  believe  that  we  are  able  to  fulfil  all  these 
conditions  and  they  are  cautiously  but  persistently  pressing  the  responsi- 
bility upon  us.  Need  we  hesitate  to  take  the  hint  and  prepare  to  assume 
it?  Are  our  public  men  men  too  timid  to  lead  the  people  up  to  the 
great  work  which  is  before  them?  Are  they  blind  to  the  signs  of  the 
times  or  are  they  seeking  to  encourage  the  people  in  blindness?  It  is 
time  that  every  Canadian  should  comprehend  the  attitude  which  Eng- 
land is  assuming ;  and  that  he  should  calmly  and  dispassionately  admit 
there  is  method  in  the  madness  she  is  accused  of.  We  have  seen  that 
in  a  commercial  sense  or  in  a  sense  of  military  or  national  prestige,  she 
derives  no  advantage  from  the  connection.  We  have  seen,  that  there 
is  mutual  disadvantage — unmistakeable  danger  to  the  mother  and  the 
child,  in  the  relations  subsisting  between  them.  How  long  can  we  aflord 
to  cultivate  blindness  to  our  true  position,  and  go  on  simulating  an 
importance  which  is  deceitful  and  visionary.  The  change  must  come 
and  it  is  only  manful,  to  prepare  for  it.  It  is  childish  to  underate  our- 
selves or  the  duties  that  await  us.  There  are  dangers  in  delay,  and  it 
is  our  duty  to  face  the  grave  aspect  of  the  position.  As  we  have  seen, 
the  interest  and  the  policy  of  the  Imperial  Government  are  unmistake- 
able. Tory  and  Radical  seem  for  once  in  accord.  No  doubt  the  respon- 
sibility of  ministers  in  England,  the  delicacies  of  party  relations,  the 
anxiety  of  one  side  to  retain  office  and  of  the  other  aide  to  obtain  it, 
may  temper  imperial  tactics  and  stimulate  caution  and  reserve.  It  may 
be  that  even  yet  a  skilful  appeal  to  the  dead  past  of  the  old  colonial 
policy  might  rouse  a  spirit  of  resistance  among  the  British  masses. 
There  may  be  some  who  still  believe  that  the  perpetual  minority  of  the 
Colonies  is  essential  to  the  glory  of  th-i  Empire ;  as  there  are  still  some 
who  cherish  the  traditionary  faith  that  one  Englishman  can  whip  two 
Frenchmen.  This  state  of  things  may  delay,  but  it  cannot  avert  the 
crisis.  There  remains  still  the  Colonial  Policy — the  unmistakeable 
band  writing  on  the  wall.  Even  Sir  John  Young  our  chief  Imperial 
officer,  an  able,  astute,  and  experienced  statesman,  has  not  found  it  con- 
sistent with  his  high  duties  to  be  reticent  upon  this  great  question  ot 
the  hour.     Cautiously  of  course,  as  became  his  high  office,  but  signifi- 


328  Tm  nfDKPBNDXNOC  ov  OAirJLDA.  \N<mmhtr^ 

oastlj  as  the  representatiTe  of  great  imperial  interests  here,  he  lunts  at 
the  transition  State,  through  which  our  institutions  are  pavnig.  He 
stated  at  Quebec  and  reiterated  at  Halifiuc,  that  Canadian  statesmen  asd 
people  are  the  best  judges  oi  their  own  interests ;  that  their  destinm 
were  in  their  own  hands,  and  that  if  they  decided  upon  some  chaise, 
the  proposition  would  receive  from  the  statesmen  and  people  of  Eng- 
land a  generous  and  friendly  consideration.  His  Excellency  does  not 
belong  to  that  school  of  thinlcers,  who  preach  that  pending  the  great 
consolidation  here,  further  changes  are  not  to  be  thought  of.  He  dees 
not  tell  us  that,  because  Confederation  is  but  half  aooomplialied,  we  should 
shut  our  eyes  to  the  future,  and  leave  blind  chance  to  accomplish  the 
destinies  of  this  Great  Northern  Dominion.  He  tells  us  indeed,  in  his 
Halifax  speech,  that  he  had  been  misrepresented  at  Quebec,  and  that  he 
had  been  made  to  talk  of  change  of  allegiance,  when  he  only  msant 
change  of  alliance.  Nobody  but  the  wilfully  blind  could  have  under- 
stood His  Excellency  otherwise.  Nobody  could  have  dreamed  that 
a  British  Governor  would  suggest  to  the  people  of  half  a  continent 
under  bis  rule  the  cession  of  their  temtory  to  a  foreign  power.  But 
His  Excellency  is  too  good  a  philologist  not  to  understand  the  foil 
purport  of  the  words  he  discusses.  Allegiance  signifies  the  obligatioa 
of  a  subject  to  his  prince  or  government ;  alliance  suggests  original 
powers  mutually  exercised  by  the  parties  to  a  compact,  and  pnctisallj, 
therefore,  allegiance  ceases  when  alliance  begins ;  and  this  view  is 
quite  consistant  with  Sir  John  Young's  able  speeches,  as  interpreted  bj 
himself.  He  simply  did  not  intend  to  convey  the  idea  that  England 
would  promote  the  annexation  of  this  great  country  to  Uie  vast  terri- 
tories of  our  republi<*iin  neighbors,  while  at  the  same  tims  he  felt  that 
the  future  had  something  nobler  in  store  for  us  than  the  mere  colonial 
tutelage  of  our  times.  Hence  he  spoke  of  change  from  sudi  a  state, 
encouraged  by  us,  by  reciting  the  example  of  Holland,  with  smaller 
territory  and  fewer  resources,  and  cheered  us  with  the  promise  of  the 
perpetual  good  will  of  his  government  and  "  alliance'*  with  England, 
tlie  "  mother  of  nations."  The  country  owes  a  debt  of  gratitude  to 
His  Excellency  for  this  timely  aid  to  the  popular  thought,  for  thus 
cautiously  foreshadowing  that  brilliant  future  whose  effulgence  has 
dazzled  his  timid  ministers,  it  is,  moreover,  stated,  upon  what  seems 
to  be  undoubted  authority,  that  when  it  was  intimated  to  Sir  A.  T. 
Gait  that  Her  Majesty  had  it  in  contemplation,  in  view  of  his  distiii- 
guished  public  services,  to  confer  upon  him  the  honor  of  knighthood, 
that  gentleman  took  occasion  to  lay  before  the  Executive  a  sutemeot 
expressing  his  high  sense  of  this  great  honor,  but  that  he  felt  he  ougfat^ 
before  accepting   it,  to  represent  the  strong  views  he  entertained  la 


1869]  TBS  ZITDBPBNDXNOS  OV   OAVADA.  829 

favor  of  the  early  independence  of  this  country.  But  Her  Majesty's 
representative  found  in  this  phase  of  opinion  no  disqualification  for 
royal  favor,  and  Her  Majesty  was  graciously  pleased  to  confer 
it.  It  would  be  fair  to  ask  if  Sir  John  Young  did  not  mean  to 
indicate  independence,  what  did  he  mean  %  He  could  not  have  referred  to 
our  representation  in  the  British  Parliament,  the  only  means  by  which 
we  colonists  could  become  the  equals  of  our  trans-AUantic  countrymen, 
and  an  impossible  concession  from  the  Imperial  Government.  If  Eng- 
land were  to  admit  the  representatives  of  her  millions  of  colonists  to 
seats  in  the  House  of  Commons,  how  long  would  she  maintain  her  met- 
ropolitan and  conservative  dominance?  How  long  before  she  must 
cease  to  consider  colonial  questions  from  an  Imperial  point  of  view,  and 
find  her  children  assuming  the  attitude  of  her  masters  1  Such  a  solu- 
tion of  the  coloniil  relationship  is  undesirable  and  impossible.  Eng- 
lishmeo  would  never  dream  of  it,  and  if  they  did,  it  would  not  meet 
our  colonial  wants.  Perhaps  it  would  be  fair  to  interpret  that  speech  in 
the  light  of  Imperial  opinion.  It  is  not  to  be  supposed  that  His  Excel- 
lency intended  to  start  new  and  original  theories.  Let  us  believe  him 
to  have  been  in  accord  with  the  statesmen  of  his  country  ar.d  his  time. 
In  that  great  debate,  from  which  I  have  quoted  on  the  defences  of  this 
country,  Mr.  Disraeli  alluded  to  the  hypothesis  of  a  desire  on  the  part 
of  Canada  and  the  other  North  American  Colonies,  for  independence; 
and  to  the  hour  when  England  might  thus  lose  a  dependency,  but  gain 
a  firm  ally  and  friend.  And  again,  he  said  Canada  has  its  own  future 
before  it.  We  have  a  ri^ht  to  assume  it.  It  has  all  the  elements  which 
make  a  great  nation.  Il  has  at  this  moment  a  strong  development  of 
nationality,  and  the  full  conviction  on  the  part  of  England  that  these 
Provinces  m^y  ultimately  become  an  independent  country  is  to  her,  not 
a  source  of  mortification,  but  of  pride.  Mr.  Bright  in  the  same  debate 
points  out  the  reason  why  Canadians  should  feel,  if  they  are  like  other 
Englishmen,  that  it  would  be  better  for  their  country  to  be  disentangled 
from  the  politics  of  England,  and  to  assume  the  position  of  an  independ- 
ent state.  He  believed,  from  what  had  been  stated  by  official  gentle- 
men in  the  present  government,  and  in  previous  governments,  that  there 
was  no  objection  to  the  independence  ot  Canada  whenever  Canada 
might  wish  it.  If  Canada,  by  a  friendly  separation,  became  an  inde- 
pendent state,  said  Mr.  Bright,  choosing  its  own  form  of  government — 
monarchical,  if  it  liked  a  monarchy,  or  republican,  if  it  preferred  a 
republic,  it  would  not  be  less  friendly  to  England.  And  in  case  of  war, 
Canada  would  then  be  a  neutral  country,  and  her  population  enjoy 
greater  security.  In  the  same  debate  Lord  Palmerston  declared  that 
when  the  Provinces  felt  strong  enough  to  stand  alone,  and  desired  the 


D30  THX   INOBPSNDBVOB  OF  OAMADA.  [NovemhtTf 

connection  no  longer,  England  would  say  '*  Crod  speed  you  and  ei^t 
you  the  means  to  maintain   yourselves  as  a  nation."    Thesp  general 
sentiments  of  the  debate  provoked  no  dissent  in  the  House,  where  ill 
shades    of  British    opinion    are    represented.      And    though  nobody 
declared  the  tim^  had  come,  Engl  «nd  was  manifestly  shaping  her  policy 
to  meet  it.     1  shall   pass  over  the  stronger  expressions,  the  advanced 
opinions  of  subsequent  debates,  because  time  does  not  permit  me  to 
produce  a  repertoire  of  all  the  discussions  on  this  subject.     But  In  Um 
light   of  what  has   gone   before   it  is  not  easy  to  misunderstan<1  the 
remarkable  utterances  of  Mr.  Gladstone,  the  Prime  Minister  of  £ng^ 
land,  during  the  debate  in  the  House  cf  Commons  the  other  day  upon 
the  subject  of  guaranteeing  the'Hu'58on  Bay  Lioan.     Objecti*>ns  had 
been  taken  to  the  principal  of  colonial  guarantees,  and  Mr.  Gladstone 
fully  endorsed  them.     But  he  declared  that  this  guarantee  was  given  for 
a  strictly  imperial  object,  to  dissociate  England  from  the  inconvenience 
of  too  extensive  territorial  p  >ssessions.      In  former  times,  said  Mr. 
Gladstone,  the  American  Colonies  were  entangled  in  a  vicious  systeia 
of  dependence  on  England.     The  government  wished   to  engender  in 
them  a  spirit  of  independence.    They  wished  to  wind  up  the  old  system 
and  see  the  colonies  make  a  new  start.     Taat  was  not  to  be  a  be^n- 
ning,  but  an  end.    Almost  as  I  speak  a  confirmatory  missive  omes  to 
us  across  the  water-— one  of  the  strangest,  as  it  is    one  of  the  roost 
important  events  of  our  time.     The  London  Times  by  the  last  steamer 
is  handed  me,  containing  a  circular  from  a  meeting  of  colonists  in  Loo- 
don,  expressing  alarm  at  the  new   imperial   views  of  the  colonial  rela- 
tions, and  seeking  to  provide  means  of  inducing  the  British  Govern* 
ment  to  withdraw  from  its  lately  declared  policy  on  the  subject  of  colo- 
nial defence;  or  failing  in  that,  to  demand  to  be  released  from  their  alle- 
giance, and  to  adopt  such  further  means  as  the  exigencies  of  the  new^ 
situation  may  require.     The  circular  suggests  a  conference  in  London 
during  the  next  session  of  the  imperial  Parliament  of  delegates  from  all 
the  colonial  governments,  and  the  Times  vouches  for  the  importance  of 
the  movement,  which  it  regards   as  an  epoch  by  the  tone  in  which  it 
discusses  the  whole  question.      That  journal,  the  most  delicate  ther- 
mometer of  influential   opinion   in   England,  argues  that  the  remon- 
strances will  be  fruitless,  and  warns  the  colonies  to  rely  on  their  ovn 
independence.     From  all  this  it  appears  tiiat  the  attitude  of  England  it 
sufHcientiy  pronounced  and  comprehensible,  and  one  of  its  effects  wiU 
be  powerfully  to  modify  and  ripen  colonial  opinion.     At  first,  no  d(»ubt, 
among  our  own  people,  we  may  witness    bewilderment  and  surprise. 
Some  will  make  it  a  pretext  to  advance  preconceived  opinions,  and 
others  may  at  first  turn  from  it  in  disgust;  but  in  the  end  the  sober 


1860]  TBS  INDSPEKDBKCS   OV  OAKADA.  8M 

second  thought  of  our  country  men,  if  the  opportunity  is  afforded  them, 
Trill  grapple  with  the  subject  in  a  patriotic  spirit  and  with  a  fair  refer- 
ence to  its  hearing  upon  the  interests  of  both  countries.    In  this  spirit  I 
propose  to  consider  a  little  more  fully  the  relations  of  this  subject  to 
our  Canadian  interests,  and  perhaps  to  extend  in  some  further  detail 
points  to  which  I  have  already  adverted.    There  is  a  class  of  politi- 
cians and  publicists  among  us  who  pretend  that  until  the  great  scheme 
of  Canfc^eration  is  perfected  the  talk  of  further  change  is  a  fatal  dis- 
turbance to  the  public  mind.     And  in  a  despotic  country,  where  popular 
opinion  can  be  dispensed  with,  where  all  power  rests  with  the  Govern- 
ment and  the  theories  of  free  institutions  are  unknown,  such  a  dictum 
might  be  tolerated.    It  would  be  consonant  with  such  a  view  to  dis- 
courage thought,  to  forbid  discussion,  and  by  all  means  to  smother 
vrhatever  should  tend  to  promote  an  intelligent  public  sentiment  among 
the  people.     They  might  learn  to  differ  from  the  policy  of  their  rulers 
and  this  might  lead  to  disturbance  and  alienation.    But  such  a  preten- 
sion implies  insult  to  a  free  people  and  indicates  the  apprehension  of 
those  who  proclaim  it,  that  they  may  cease  to  overshadow  and  control 
them.     The  Irish  difficulties  are  as  intricate  as  any  of  the  embarrass- 
ments of  our  own  position  ;  yet  we  did  not  hear  that  Mr.  Bright  was 
forbidden  to  discuss  the  Land  question  until  after  the  disestablishment 
bad  be«;n  perfected.    The  truth  lies  entirely  in  the  opposite  sense.    It  is 
the  duty  of  public  men,  whose  lives  are  devoted  to  the  study  of  public 
questions,  to  discuss  them  before  the  people,  that  they  may  be  educated 
to  comprehend  the  great  issues  which  involve  the  destinies  of  their 
country.    These  writers  would  conceal,  while  I  would  proclaim  from 
the  house-tops,  the  stern  facts  of  the  situation.    They  would  hush  the 
popular  interest — ^lull  the  spirit  of  inquiry — while  I,  reposing  ample 
faith  in  their  honesty  and  patriotism  of  my  countrymen,  would  excite 
the  one,  that  I  might  lead  the  other,  through  the  paths  ot  intelligent 
research,  to  the  haven  of  wise  and  profitable  conclusions.    Doubtless 
there  is  too  much  of  disquiet  in  the  public  mind ;   but  to  discuss  the 
position  is  not  to  create  it ;  and  he  must  be  a  crazy  thinker  who  can 
suppose  that,  in  view  of  all  the  circumstances,  the  people  are  to  look  on 
without  thought  and  without  speech  !    But  who  is  to  control  the  impres- 
sions of  the  masses,  to  limit  their  thoughts,  to  curb  their  restless  mental 
activities  1    The  people  are  observant ;  in  their  own  way  they  read  the 
signs  of  the  times,  and  among  them  the  apprehension  is  almost  uni- 
versal that  we  are  on  the  eve  of  radical  political  changes.    You  and  I, 
no,  doubt,  share  the  same  apprehension.    Is  it,  not,  then,  the  duty  of  our 
political  teachers  to  cultivate  our  opinions,  to  enlighten  us  and  to  prepare 
us  for  our  duties  in  whatever  awaits  us,  rather  than  to  silence  our  inqui- 


832  foa  nvDiPEHDivos  op  oakada.  IKavemher^ 

ries  and  leave  us  to  drift  in  the  dangeroas  currents  of  unculti?ated  speea- 
lationsf  The  great  commercial  want  of  this  country  is  a  profitable 
market  for  the  surplus  products  of  our  industry.  It  was  the  theory  of  cod- 
federatioD  to  supply  this  want  by  opening  up  to  us  the  markets  of  the 
sister  provinces.  I  am  afraid  the  results  have  not  thus  far  greatly 
increased  our  scanty  manufactures.  Our  natural  market  is  the  Americso, 
and  we  do,  and  shall  suffer,  till  we  gain  access  to  it.  Nor  would  a  men 
temporary  treaty,  subject  to  the  caprices  of  poHticians  and  entangled  with 
the  embarrassments  of  British  foreign  diplomacy,  afford  a  full  remedj. 
Manufactures  and  commerce  prosper  under  permanent  as  welt  as  liberal 
tariff  arrangements,  and  it  is  in  vain  that  you  treat  them  with  gene- 
rosity to- day  if  there  is  apprehension  that  you  may  cramp  them  to-morrow. 
We  require  markets;  but  to  confer  their  full  benefits  they  must  be  pe^ 
maoent,  so  that  capital  may  acquire  confidence  and  seek  pennaneot 
investments  here.  Without  this  state  of  things  our  trade  must  be  lim* 
ited  and  manufactures  remain  exotics  among  us ;  and,  the  exodus  of  our 
population  remaining  about  equal  to  its  normal  increase,  the  promise  of 
progress  is  not  cheering.  We  ought  to  be  manufacturers  for  this  conti- 
nent, with  our  cheap  labor,  cheap  living  and  wonderful  natural  fadiitisL 
We  cannot  compete  against  the  distance,  the  skill,  the  capital  and  teem- 
ing labor  of  the  Old  World,  and  there  remains  for  us  but  the  compara- 
tively petty  business  of  supplying  our  own  sparse  populations  in  unhealthj 
competition  with  the  great  manufacturing  industries  of  England  asd 
America;  and  it  often  happens  in  time  of  depression,  when  our  strugfliog 
manufactures  most  need  encouragement  and  support,  that  we  are  made  s 
sacrifice  market  for  those  greit  countries,  to  the  rain  of  our  home  trsde. 
Our  agriculture  is  confined  to  our  own  markets,  or  leeched  and  crippled 
by  the  exorbitant  exactions  of  the  American  Customs  collectors.  The 
development  of  our  mines,  too,  is  prevented  by  like  inhospiiAble  ezao- 
tions,  and  we  are  depleted  and  impoverished  by  a  paper  wall  of  legislative 
prohibitions,  built  along  an  imaginary  line.  In  this  strait  it  is  cold  com- 
fort to  assure  us  that  the  neighboring  trade  suffers  equally  with  our  own; 
a  fact,  nevertheless,  modified  by  this  difference — that  the  aggregate  of 
their  commerce  is  so  much  greater  than  ours.  It  would  be  idle  to  doabt 
that  these  influences  have  contributed  to  produce  the  present  languishing 
trade  and  universal  depression.  The  Canada  Gazette  affords  the  spectacle 
of  forty  insolvents  in  one  week ;  and  the  unfortunate  list  stretches  back 
for  months  past  in  alarming  proportions.  The  emigration  of  commoa 
laborers  to  the  States  is  somethiog  actually  alarming ;  and  it  could  not 
be  otherwise,  for  our  water  powers  are  neglected,  our  mines  are  closed,  snd 
we  have  no  means  of  furnishing  employment  to  our  people.  Some  wise 
statesman  has  been  understood  to  exult  over  the  fact  that  many  of  these 


1869]  THS  ZITDIPKNDBHOK  OF  OAFADA.  SBS 

poor  people  go  away  with  the  hope  of  retaroing ;  but  it  is  a  sad  com- 
mentary on  our  hopes  for  the  future  if  there  are  to  be  no  means  to  remove 
the  Htern  necessity,  the  hopeless  poverty  and  want  of  employment,  which 
drives  them,  unwilling,  away.    We  are  told  that  depression  prevails  in 
the  States,  which  is  true;  but  the  manufactures  are  established  there,  and 
even  the  limited  production  goes  on,  the    markets  are  supplied,  and  the 
poor  laborer  is  employed  and  paid.     It  is  to  him  matter  of  little  moment 
whether  the  dividend  of  the  stockholder  is  small  or  great,  so  long  as  his 
services  are  continued  and  he  is  enabled  to  sustain  and  educate  his  family. 
No  doubt  if  a  like  chance  were  open  to  him  here  he  would  return  to  hi» 
native  country  to-morrow.     And  for  all  this,  is  there  no  remedy  ?     Tell 
me  which  of  your  scatesmMu  has   propose<l  one.     We  may  drag  on  as  we 
are,  but  it  were  folly  to  h  »pe  for  any  rapid  or  general  prosperity.     The 
politicians  of  Ontario,  ign>ring  ihe  outward  signs,  profess  to  stand  in  no 
need  of  relief;  but  there  i^  a  different  feeling  in  Quebec,  New  Brunswick 
and  Nova  Scotia.    It  is  s^id  there  is  hope  of  a  new  Trade  treaty,  which 
would  be  a  great  boon ;  but  it  must  promise  permanence,  to  create  con- 
fidence.   We  must  have  free  and  assured  commercial  intercourse  with 
the  States,  and  they  need  it  as  well  as  ourselves.    I  shall  be  told  these 
theories  lead  to  annexation ;  and  it  in  true  that,  so  far  as  our  embarrass- 
ments relate  to  commercial  intercourse,  annexation  would  supply  a  remedy. 
But  would  it  be  the  best  remedy!     I  think  not;  and  even  if  it  were 
otherwise,  would  it  be  desirable  or  possible  of  achievement?      I  shall 
speak  of  this  later  on.     Bat  mine  is  another  scheme,  and,  I  think,  a  bet- 
ter on»»,  for  a  system  of  continental  trade.     I  would  banish  the  Custom 
Houses  along  the  frontier;  but  I  would  preserve  the  imaginary  line,  as  a 
broad  division  between  two  friendly  nation^  who    desire,  while  maintain- 
ing free  intercourse,  to  maintain  their  autonomy-«to  work  out  their  own 
destiny  and  develop  their  own  free  institutions.     Before  the  formation  of 
the  Zollverein  by  treaty  stipulations,  the   commercial  intercourse  of  the 
several  German  States  was  hampered  by  disabilities  and  restrictions  simi- 
lar to  those  which  prevail  between  us  and  our  neighbors  at  this  moment. 
The  introduction  of  merchandise  from  one  State  to  another  was  not  per 
mitted  without  the   payment  of  duties.    In  addition  to  this  numerous 
prohibitions  existed,  and    the   trade   relations   between   the  contiguous 
sovereignties  were  fettered  by  oppressive  and  vexatious  restrictions.     Bat 
the  inconvenience  became  manifest  and  intolerable,  and  the   German 
States,  while  retaining  their  autonomy,  introduced   a  wiser   commercial 
policy.    They  removed  those  unnecessary  burdens   which    only  tended 
to   clog    enterprise    and     choke    the    cbannels    of    legitimate     trade 
between  contiguous  States.    They  adopted  one  consolidated  Government 
for  commercial  purposes,  one  line  of  customs  on  the  Geographical  boun- 


334  THS  XMDKPBNDBHOs  ov  OAVADA.  [N<mmher, 

dariea  was  established— one  tariff,  export  and  transit,  was  enforced  for  til, 
and  the  revenue  thus  acquired  was  distributed  among  the  members  of  tbs 
confederation  in  proportion  to  the  population  of  each.    This  system  fort 
long  series  of  /ears  has  given  satisfaction  in   Germany,  and  it  is  eos* 
ceivable  that  Canada  and  the  United  States  might  adopt  something  akia 
to  ic  with  mutual  and  permanent  advantage.    This   would  be  preferaUa 
to  any  Reciprocity  Treaty,  because  it  would  be  abeolate  and  perinsoent 
free  trade  between  the  two  countries.    Ic  is  preferable  a^rain,  becsufe  it 
could  be  more  easily  obtained,  and  would  indeed  be  a  favorite  arrange- 
ment with  the  Americans.    It  would  save  both  parties  immense  exprnse 
along  their  frontier,  and  would  disband  a  vast  army  of  smugglers.   It 
might  be  effected  in  six  months,  and  while  it  would  be  equally  advaDti- 
geous  to  our   neighbors,  it  would  make  Canada  a  great  agricultunl, 
mining  and  manufacturing  country.    It  would  be  popular  in  the  United 
Stales  because  it  would  please  the  free  trader,  and  Mr.  Greely,  the  great 
protectionist,  has  promised  us  his  support.    It  would  settle  the  Fisheriei 
and  give  them  the  free  navigation  of  the  St.  Lawrence,  and  it  wonld  opeo 
half  a  Continent  to  their  enterprise  and  oapital.    It  would  give  us  aoces^ 
to  the  markets  of  40,000,000  of  people.    It  would  attract  to  ns  unlimited 
capital,  and  our  country  would  be  dotted  with  numerous  mining  aod 
manufacturing  villages.    Our  agricultural  and  commercial  interests  woold 
multiply  and  expand  in  proportion.    Our  people  would  be  employed  at 
home,  and  multitudes  of  foreign  laborers  would  be  attracted  from  abroad. 
Happiness  and  contentment  would  walk  hand  in  hand  with  the  prosperity 
of  our  countrymen.    Ycu  like  the  picture,  but  alas!  it  has  awkward 
shades ;  and  it  is  set  in  an  ugly  frame.    We  can't  negotiate  such  a  treaty. 
Canada  has  great  interests,  but  she  has  no  power.     She  can  exerdse 
no    diplomatic    functions,    because    she    has    no    recognized    foreign 
relations.    She  might  attempt  it  and  be  snubbed,  after   the   manotf 
of  Prince  Edward  Island.    There  were  those  who  sneered  at  my  igQo^ 
ance  when  I  made  this  statement  in  the  House,  because  the    British 
Minister   had    been  instructed  to   consult  us  in  his  negotiations.     Do 
they  think    Mr.   Thornton    would    n^otiate    this    ZoUverein   for  ns! 
No  I    Because  it  would  conflict  with  the  policy  of  the  Empire.    Cansdtv 
as  a   dependency,  can   never  become  a  party  to  a  Continental    Com- 
mercial policy  here,  because  it  would  involve  a  disorimination  against 
British  goods.    This  is  reasonable,  and  we  must  not  complain  of  it 
It   would,  indeed,    be    a    vicious    system,    which    would    ignore   the 
interests  of  the  mother  country  and  discriminate  in  fiivor  of  a  foreiga 
power.    And  yet  how  egregiously  we  are  the  bufferers  I   There  is  bat  one 
logical  remedy,  and  that  brings  me  again  to  the  same  conclusian — a 
Bsparation  from  the  parent  State.  Independent,  we  might  accomplish  ths 


1869]  IHX  XNDS7INOSH0JB  OF  CANADA.  335 

commercial  advantage.    Independentywe  might  take  the  staff  in  our  o*;*  n 
hands.    We  should  have  foreign  relations.    We  oould  negotiate  treaties. 
In  this  sense  we  could  not  suffer  from  the  change.    We  know  our  own 
iDterestSi  but  British   diplomacy  on  this  continent  has  never  been  a 
success.    It  could  not  be  otherwise.    Imperial  statesmen  have  little  time 
to  think  of  us.    They  are  better  employed  on  the  restless  sea  of  European 
complications.    But  they  are  wiser  than  us  in  the  appreciation  of  our 
affairs,  for  they  belieye  and  wish  that  we  should  assume  our  independence 
and  maintain  it.    We  shall  grow  to  it  in  time  if  we  are  patient  and  dis- 
creet.   But  the  pioneera  of  the  movement  must  bare  their  bosoms  for 
temporary  contumely  and  reproach.    Theie  is  a  class  of  people  among  usi 
I  believe  they  are  not  numerous,  though  the  uncertainties  of  the  times 
are  calculated  to  increase  themi  who  are  impatient  of  half  measures,  and 
who  desire  immediate  annexation  to  the  States.    To  such  people  I  say 
what  advantages  would  you  derive,  that  the  Zollverein  would  not  afford 
you  f    Sorely  you  do  not  prefer  the  system  of  our  neighbors  to  our  own 
British  responsible  system  of  government.    You  are  not  unmindful  of  the 
elevation  which  national  hopes  and   asjHrations  would  impart  to  our 
people.    Why  not  join  ua  and  work  out  that  system  under  improved 
conditions  on  this  continent  ?    England  would  gladly  consent  to  our  inde. 
pendence  and  aid  us  with  the  perpetual  alliance  her  statesmen  have 
promised.    But  oould  she  without  loss  of  prestige  and  honor  consent  to 
the  alienation  of  half  a  continent,  and  its  cession  to  a  foreign  power  I 
Tou  only  complicate  the  situation  by  your  impracticable  demands.    You 
furnish  weapons  to  the  enemy,  and  you  do  not  serve  your  own  views.    !« 
Canada  is  ever  seperated  from  England,  it  will  be  at  the  cannon's  mouth 
if  it  be  not  to  establish  her  sovereign  independence.    It  is  better  for 
America,  and  better  for  ourselves,  that   the  Dommion  should  remain 
autonomous.    The  United  States  territories  are  vast  enough,  and  she  can 
well  afford  to  let  us  try  the  experiment  of  self  government    We  shall 
work  out  a  system  slightly  different  from  her  own,  but  within  the  bonds 
of  friendly  commercial  relations.    If  her  flag  floated  over  the  whole  con. 
tinent,  where  would  be  the  right  of  asylum  in  case  of  civil  disorder  t 
And    what    benefit    would    she    derive  from   a    multitude    of  people 
who    should    enter    her    councils    in    a    spirit    of  repining    and  dis- 
content because  they  had  not  been  left  to  develop  and  glorify  their  own 
nationality.    And  I  must  say  a  word  to  another  class  of  objectors.    There 
is  a  powerful  party  here  who  represent  the  United  States  as  overbearing 
and  agressive.    They  believe  that  the  inauguration  of  a  commexx^ial  Zoll- 
verein would  be  followed  by  o^ert  acts  for  our  subjection.    I  believe  this 
statement  is  unfounded.    I  have  no  doubt  that  judicious  negotiatioiis 
might  speedily  remove  the  danger  of  it,  by  the  guarantee  of  onr  status 

2 


through  the  means  of  a  treaty  of  comity  with  ns  between  the  TJnitad 
States  and  England ;  and  I  have  no  doubt  that  earl  j  steps  should  be  tskn 
to  secure  it.    But  I  dont  believe  it  is  &ir  to  assert  that  the  Amerieaiutre 
an  agressive  people.    Tbey  are,  as  a  nation,  wedded  to  the  aits  of  p«toe, 
Sometimes  fillibusters  have  departed  from  their  shores,  butthejhaveaevcr 
auoceeded,  and  they  have  never  been  encouraged  by  their  goremmeat  As 
I  have  already  said,  Mexico,  Ouba,  and  the  Spanish  American  States  hm 
never  suffered  from  an  American  spirit'of  conquest    True,  there  was  a  w 
with  Mexico,  but  with  that  nation  at  her  feet,  the  Americana  refased  ber 
anbjagation.  With  less  cause  France  invaded  that  country,  and  attempted 
to  monopolize  her  government.  England,  by  a  happy  accident,  eecapedi  Bat 
I  shall  be  told  that  the  Monroe  doctrine  contemplates  the  unquaii6ed  sob- 
jugation  of  the  continent,  and  that  the  Americans  preach  that  doctrine  as 
Peter  the  Hermit  preached  the  Crusades.    So  much  has  been  said  of  tk 
monstrosities  of  that  doctrine— «o  many  excellent  old  ladiea  have  beea 
alarmed  by  it — ^that  perhaps  we  may  profitably  enquire  what  it  was,  and 
whether  we  should  really  regard  it  as  a  standing  menace  to  as  and  oor 
diildren  f    It  will,  perhaps,  startle  some  people  to  be  told  that  this  doe- 
trine  was  essentially  of  British  origin,  and   that  it  was  suggested  bj  Mr. 
CanniDg.    France  had  put  down  the  constitutional  principlea  which  pre- 
vailed in  Spa^n,  and  entertained  the  notion  of  defraying  her  expenses  bj 
acquiring  Spanish  colonies  in  South  America,  and  England,  indignant  at 
conduct  so  detrimental  to  her  interests,  and  with  the   avenion   which  Mr. 
Canning  had  ever  shown  to  the  Holy  Alliance,  induced  Preaident  Moeroe 
to  enunciate  the  doctrine  which  has  sinoe  become  so  famous.     The  fol* 
lowing  quotation,  from  the  late  edition  of  the  JSncyloposdia  Brittatuea, 
will  explain  what  that  doctrine  really  was :  '* James  Monroe  succeeded  Mad- 
ison in  the  Presidency,  and  retained  it  eight  years  (1817   to   1823.) 
Towards  the  close  of  his   administration  (1823),  in  compliance  with  tbe 
BUggestion  of  his  Secretary  of  State  John  Quincy  Adams,  he  introdticed 
into  hia  message  to  Oongress — adverting  into  the  purpose  of  the  Eoropeas 
allies  of  Spain  to  assist  her  in  subjugating  her  revolted  colonies  in  Ceotfil 
and  South  America — ^the  assertion  of  a  principle  in  which  tbe  rigbts  and 
interests  of  tbe  United  States  are  'uvolved,  that  the  American  conUDenls, 
hj  the  free  and  independent  positions  which  they  have  aasumed  and  mua- 
lained,  are  henceforth  not  to  be  considered  as  subjects  for  future  coIodiI' 
•tion  by  any  European  power.        ••••♦•• 
^With  the  existing  colonies  or  dependencies  of  any  Baropean  power,"  coo- 
iinues  the  messages,"  ^  we  have  not  interfered,  and  shall  not  interfere.  Bet 
with  the  governments  who  have  declared  their  independence  and  main* 
4ained  it,  and  whose  independenoo  we  have  on  great  consideration  aad  oa 
Just  principles  aoiinowledged,  we  could  not  view  any  interposition  tor  tk^ 


1869]     '  TBS  IVBX7XBDXS0K  0?  PAXiSA.  .33.7 

purpose  of  oppressmg  theiQ|  or  of  oontrolling  by  any  other  maDner  tbeir 
destiny  by  any  Eiiropeaa  power  in  any  other  light  than  as  the  manifesta* 
lion  of  an  unfriendly  dispoaition  towards  the  United  States." 

Congress  took  no  actioa  upon  this ;  but  the  spirit  of  that  body,  and  of 
the  nation  was  in  favor  of  the  Monroe  doctrine.      Lord  Brougham,  in 
referring  to  the  President's  declaration,  stated  that  it  had  diffused  joj  over 
all  free  men  in  Europe;  and  Sir  J.  Macintosh  spoke  of  it  in  the  following 
terms :  'This  wise  government,  in  grave  but   determined  language,  and 
with  that  reasonable  and  deliberate  tone  which  becomes  true  courage  pro- 
claims  the  principles  of  her  policy,  and  makes  known  the  cases   in   which 
the  care  of  her  own  safety  will  compel  her  to  take  up  arms  for  the  defence 
of  other  States.    I  have  already  observed  its  coincidence  with  the  declara- 
tions of  England,  which,  indeed,  is  perfect,  if  allowance  be  made  for  the 
deeper,  or  at  least  more  immediate  interest  in  the  independence  of  South 
America,  which  near  neighborhood  gives  to  the  United  States.     This 
GoincideDce  of  the  two  great  English  commonwealths — for  so  I  delight 
to  call  tliem,  and  I  hear  lily  pray  that  they  may  be  for  ever  united  in  the 
cause  of  justice  and  liberty — cannot  be  contemplated  without  the  utmoet 
pleasure  by  every  enlightened  citizen  of  the  earth.''    Thus  it  will  be  seen 
that  the  real  Monroe  doctrine  differs  entirely  from  the  popular  version  of 
it,  that  it  was  suggested  and  heartily  endorsed  by  England,  and  that  it 
conveys  no  warning  or  niinace  to  m.     I  entertain  no  doubt  that  the 
American   Government   and   people  would   promote,  by  all  convenient 
means,  the  independence  of  this  country,  and  the  intimate  commercial 
relations  I  have  suggested,  and  as  will  have  been  seen,  my  doubts  are  as 
few,  that  England  would  encourage  the  arrangement  and  promote  it  to 
every  reasonable  extent.     But  even  if  improved  trade  relations  with  our 
neighbors  were  impossible,  the  safest  way  out  of  our  commercial  diffi(*ul« 
ties  is  to  throw  off  the  restraints  of  the  colonial  state.    It  is  conceivable 
that  the  tide  of  European  emigration  might,  to  some  extent,  be  diverted 
from  the  American  States  to  our  own  rich  and  extensive  valleys  of  the 
NorUiwest,   but  for  the  European  prejudice  against  dependent  States; 
and  especially  the  Irish  prejudice  against  British  sovereignty.    Disguise 
it  as  we  may,  these  are  serious  drawbacks  to  our  immigration  policy 
and  account  in  some    measure   for  its  practical    failure.      With   the 
Northwest  peopled,  and  with   facilities  of   access  to  it,  an  important 
market  will   be   opened    to    us  and  a  corresponding    growth   of   our 
manufactures  will  follow.     And  as  we  have  already  seen,  independence 
would  contribute  to  the  establishment  of  an  assured   and  permanent 
commercial    policy ;    without   which    capital  will  continue^  to  distrust 
us,  and    refuse  to    play    its    legitimate    part  in   the  development  of 
our  resources.    Independence  jnoreover,  would  create  among  us  that 


838  THX  INDlPSia>KKOK  0?  OAVASA. 

spirit  of  self-confideDoe  and  enterprise  whioh  prevails  so  largely  smoi^ 
bur  neighbors,  which  has  contributed  so  much  to  their  greatneiB  asd 
which  grew  out  of  the  national  independence  they  established.  Fran 
such  a  point  of  view,  I  have  no  doabt  that  here  similar  results  woald  flov 
from  similar  canses,  and  that  oar  powers  of  expansion  would  be  immesialj 
increased,  by  the  higher  responsibilities  of  the  position ;  and  though,  m  I 
have  shown,  our  natural  market  is  with  our  neighbors  ;  and  our  exdivioB 
from  them  would  make  our  progress  towards  greatness  comparatirelj 
toilsome; — having  exhausted  all  means  to  establish  fair  intercourse^— I 
should  by  no  means  despair  of  my  country,  if,  as  I  am  sure  will  not 
happen,  that  intercourse  were  refused.  But  even  in  that  case  as  in  the 
other,  independence  would  multiply  and  accelerate  our  successes;  so  thti 
in  any  way,  the  gain  to  us  is  in  proportion  to  our  growth  in  manhood 
and  self-reliance.  I  have  already  cousidered  tha  probable  inflaenee  of 
independence  upon  the  character  of  the  people  of  this  country.  I  ha?s 
always  lamented  the  want  of  a  Canadian  national  spirit.  I  regard  it  as  as 
elementary  truth,  that  no  people  can  respect  themselves  or  oommiuid  the 
respect  of  othem,  who  have  among  them  no  common  sentiment  of 
national  piide  and  devotion.  It  bean  to  national  life  a  relation,  stmilir 
to  the  filial  attachment  of  the  domestic  circle;  and  is,  t^i  the  same  ti(D« 
the  glory  and  the  safe-guard  of  a  free  people.  It  is  painful  to  remark  ib 
absence  in  this  countxy.  You  will  find  national  pride  here,  bat  it  u 
an  exotic,  an  importation.  It  is  English  or  Scotch,  Irish  Frendi  and 
American;  and  the  disposition  to  magnify  a  real  Canadian  nationafitj 
IB  too  often  and  unhappily  confined  to  the  oflSdal,  the  placeman,  whose 
duty  and  whose  interest  it  is  to  make  a  proper  display  before  tk 
people.  In  how  many  promiscuous  gatherings  you  might  sneer  the 
nationality  of  the  Dominion  without  exciting  an  apologist  or  provoki^ 
an  avenger.  |But  the  subject  is  vast,  and  grows  upon  us  in  tiie 
contemplation  of  it.  A  full  discussion  would  fill  a  book  insteid 
of  a  lecture.  Time  hurries  me  to  a  conclusion.  This  is  a  grett 
scheme  and  your  destinies  are  interwoven  with  it  I  have  touched  upon 
Its  general  features ;  you  can  do  the  filling  up  at  your  leisure,  if  yoa 
do  me  the  honor  to  reflect  upon  what  I  have  told  you.  We  have  sees 
that  the  subject  is  ripe  for  discussion ;  and  that  our  vital  interests  are  ia- 
volved.  We  have  seen  that  England  is  embarrassed  by  her  relations  to 
her  dependencies  here,  and  that  Canada  is  crippled  by  the  restrielioiB  of 
the  connection.  We  have  seen  how  our  noblest  sentiments  of  loyalty  to 
the  crown  may  be  merged  and  intensified  into  loyalty  to  the  Dominion ; 
and  how  a  spirit  of  national  patriotism  is  indispensable  to  onr  growth 
In  enterprise  and  self-reliance.  We  have  seen  how  the  removal  of  Impe- 
rial tutelage,  paved  the  way  f(W  the  gron  th  and  ezpanuon  of  Ibe  oMer 


1809]  TBS  XVDXPBKDINOJB  OV  OANADiu  38^ 

North  American  Colonies ;  and  how  rapidly,  while  administering  their 
own  resources,  they  rose  into  greatness  and  power.    And  we  have  seen 
how  England  was  immensely  the  gainer,  by  this  providential  change  of 
her  relationship  to  them.    I  have  shown  how  we  might  pro6t  by  their 
example — not  through  revolt  and  bloodshed, — for  we  find  England  offer- 
ing us  the  boon  of  independence,  which  she  denied  to  them, — and  thus 
the  way  is  made  easy,  through  peaceful  paths,  for  the  accomplishment  of 
our  nationality.    I  have  shown  that  the  proposed  state  is  but  a  second  and 
necessary  step  in  the  great  drama  of  confederation, — and,  that  it  indicates 
no  revolution,  no  violent  distortion  of  our  institntions.    I  have  shown  that 
England  desires  the  change,  and  that  we  need  it ;  and  that  it  would  hap* 
pily  solve  for  us  great  commercial  and  political  problems.    I  have  shown 
how  it  might  lead  to  the  cultivation  of  amity  between  ourselves  and  our 
neighbors — how  it  must  tolerate  the  separate  independence  of  each,  while 
it  embraces  the  widest  freedom  of  commercial  relations.    I  hatre  warned 
the  impetuous  reformers,  who  would  prize  beyond  all  this,  political  alliance 
— that  annexation  is  impossible, — and  the  agitauon  for  it  an  embarrass- 
ment; and  I  have  predicted  that  the  Americans  will  be  content  with  this 
change,  s'^  important  and  so  easy  of  achievement ;  and  which  unlike  its 
alternative,  annexation,  involves  no  humiliation  to  England.  I  have  shown 
how  the  vast  tertitories,  the  important  population,  and  immense  resources 
of  this  Dominion  entitle  it  to  a  respectable  place  among  the  leading  na- 
tionalities of  the  earth ;  and  I  have  rebuked  the  critics  who  sneer  at  such 
aspirations,  decry  our  abilities,  and  prophecy  our  humiliation  and  defeat. 
It  may  be  all  a  dream  ;  but  it  is  a  vision  of  a  great  future  of  wealth  and 
happiness,  of  power  and  glory  for  our  country.     And  it  is  a  vision  which 
foietelis  a  fact,  and  will  ere  long  expand  into  the  region  of  substantial 
reality.    I   have  necessarily  led  untouched   several  important  branches 
of  this  great  question.      Tne  army  and  navy — the  diplomatic   arm  of 
the  public  service — the  whole  subject  of  the  public  expenditure — whether 
the  new  nationality  would  increase  or  diminish  it,  bow  best  it  may  be 
provided,  I  have  lefb  altogether  out  of  this  preliminary  discussion.    It  is 
enough  for  my  present  purpose  to  know  that  the  ninth  sovereign  power 
as  to  population  ;  the  fourth  as  to  commerce,  and  perhaps  the  first  as  \o 
territory  and  undeveloped  resources,  will  be  prepared  for  the  fiscal  exigen* 
cies  of  its  time.    1  have  left  out  of  the  discussion  the  form  of  the  pro- 
posed government  of  the  Dominion.    It  is  enough  for  my  purpose  to  say 
that  it  must  be  a  free  system,  whether  organized  as  monarchical  or  repub- 
lican.   Further  on  in  the  agitation,  we  ought  to  have   abundant  oppor- 
tanity  to  contrast  the  two  systems  and  discuss  them.    It  might  happen 
that,  as  with  Confederation,  our  politicians  will  give  us  a  system,  ready 
made,  without  troubling  tbe  people  for  opinions,  yet  the  subject  has 


340  THK  nrDBTSKssvcx  or  oavada.  [JiToMmhr* 

eniraged  some  preliminary  attetiUoii.    The  mgnificftut  &ct  is  stated  thst 
dnring  tbe  negotiations  Bibont  tbe  Confederation  act  in  England,  Sir  John 
A.  McDonald  advocated  the  adoption  of  the  word  Kingdom  instead  o' 
Dominion  of  Canada.    And  it  is  well  known  that  a  Canadian  MonsFckj 
was  one  of  the  dreams  of  the  late  Mr.  D'Arcj  McGee,  administered  bf 
an  English  prince  and  dignified  by  a  local  nobility.    And  tbe  able  orgaait 
of  the  hierarchy  of  Lower  Canada,  who  bare  cantioaaly  written  in  fiivo^ 
of  independence,  are  understood  to  favor  similar  views.     On  tbe  other 
hand,  there  will  be  found  those  who  dread  tbe  expenses  of  royalty,  and 
who  doubt  the  feasibility  of  ingrafting  feudal  forms  and  pageantry  upon 
the  democratic  institutions  of  tbe  new  world.    Saeb  people  see  no  cbama 
in  the  extravagance  of  a  court  and  the  re-enactment  of  tbe  laws  of  primo* 
geniture  for  the  maintenance  of  a  privileged  class.    Hiey  will  tell  yoo 
that  a  system  which  failed  in  Mexico  with  France  at  her  back  cannot  pro- 
vail  here  among  the  .^evelling  influences  of  free  institutions.     Bat  you  and 
I  may  await  the  current  of  events,  and  prepare  for  the  discussion  in  dae 
season.    It  is  well  for  these  who  agree  as  to  the  end  to  be  achieved,  U> 
aorree  also  upon  the  postponement  of  disturbing  collateral  issues.    We 
shall  6nd  for  a  time  yet  a  fierce  party  to  fight — composed  of  those  nomer- 
ous  and  powerful  interests  which  depend  upon  the  maintenance  of  things 
as  they  are;  and,  embracing  as  well,  no  doubt,  a  large  element  of  disin- 
terested loyalty  and  honest  devotion  to  the  country.    I  proposed  at  tbe 
outset  to  speak  from  no  parly  point  of  view.    My  theme  is  exalted  abore 
and  beyond  the  divisions  of  party ;  and  barring  personal  bitterness,  my 
position  has  been  assailed  as  fiercely  by  my  friends  as  by  my  enemies* 
But  this  is  not  the  occasion  for  recrimination  or  reply.    My  dependence  is 
upon  the  completeness  of  my  argument.    I  have  strong  views  as  a  party 
man,  but  they  have  no  place  in  this  discussion.    I  might  cross  the  booae 
to-morrow — if  I  found  my  enemies  adopting  these  views,  and  if  my  fneD(k 
should  persist  in  opposing  them.    There  is  a  grave  responsibility  restisg 
upon  our  public  men.    The  country  is  adrift  and  tbe  public  mind  is  dis. 
quieted.    Everybody  believes  the  finality  is  not  reached  and  asks,  WbitLer 
are  we  drifting  t    Some  suspect  that  the  administration  hold  peculiar 
views — ^but  they  neither'  venture  to  deny  nor  proclaim  them.     When  I 
bad  the  honor  first  to  express  these  opinions  on  tbe  floor  of  Parliamest 
ministers  treated  me  to  some  personal  abuse,  but  upon  the  main  qaestioB 
they  were  cautious  and  silent    lliere  was  a  profound  impression  tbroogh 
the  house — but  they  ventured  upon  no  word  of,  disavowal.    Their  ojH'n- 
ions  were  shadowed  in  mystery  and  they  had  not  the  courage  to  proclvD 
them.    Afterwards  when  this  strange  phase  of  the  debate  had  provoked 
some  comment  f^om  the  press,  Sir  Oeorge  Cartier  did  indulge  in  a  gentle 
dissent  from  my  conclusions.    Nobody  denies  that  a  change  most  coma* 


THE  XNDEPXRDBirOJB   OV   CANADA.  841 

<^  ^^  tbe  question  of  time  and  fitness  and  preparation. 

^       '^^  n  is  adrift,  and  the  policy  of  the  administration 

»    '^^          ^  "owed  and  vindicated.    If  they  are  opposed 

^^  "5^       ^^<^  ^^^^"^  ^*^^^  boldly  and  pablicly  against 

f*^^  "^  ''^^  nd  if  they  want  delay  and  oppor- 

^^^  '  -'^^.  ^    ^^.  declare  their  views  and  shape 

Y  ""^^  ''^'Sb,  .  <^/  '^'^<^.  ^^                        ^io  could  aflTord  to  wait,  if 

J^-^^  %>;^  '^^<'^  *'"^/.     «       ^  ■*"^  ^^  ^^^'^  ^®''®  *  fi*®^  *<^** 

'^A   ^(/2*^^^^  '^'/v  ^'H-^  ''^  uesirable  future.    But  grave  dan* 

^■■<?^   "^  ^^^^^'^''*.  '''^  -^^^  ^'^^  ^-^^  insecurities  of  the  hoar. 

^?>.  /.  ^^   '':5>^  iO  fast  losing  our  hold  upon  the  loyalty 

V^    "^'^^  "^  Discontent  and  non*confidence  stalk  openly 

^  .<$mies  of  our  fiiture  are  encouraged  to  flaunt 


•'»'  / 


f.'     ^  'va     ,  ''^ 


'-♦ 


V 


lore  our  very  doors.    A  national  policy,  pronouno* 
^ould  attract  tbe  ear  and  excite  the  confidence  of  tha 
ould  listen  to  your  appeal,  if  you  supplied  them  with  mo- 
yKed  their  sympathies,  inspired  them  with  national  hopes  and 
— and  their  interest  in  a  future  they  could  be  proud  of,  would 
a  sheet  anchor  to  hold  them  fast  to  the  Dominion.   And  now  gei)- 
en«  I  have  fulfilled  the  duty  which,  I  thought,  was  incumbent  upon 
'6,  of  addressing  you  some  observations,  on   this  absorbing  topic  of  the 
hour.    I  have  counted  the  cost  and  I  know  the  penalty.    You  have  not 
misunderstood, — but  my  enemies,  as  is  their  custom,  will  misrepresent 
aod  malign  me.    I  shall  be  neither  intimidated  nor  disheartened.    If  my 
views  prevail,  some  of  them  will  join  me  before  the  battle  is  over.   If  they 
are  rejected,  I  have  still  performed  my  duty.   Sometimes  it  requires  bold- 
ness to  speak  the  truth,  but  there  is  no  power  to  stifle  free  discussion  in 
tbJB  country.    You  and  I   have  a  right  to  our  opinions,  and  the  right  to 
<]iscuss  them.    Tbe  statesmen  of  England  have  set  us  the  example,  in  the 
very  citadel  of  the  empire.     The^e  is  no  political  disability  here, — for  the 
councils  of  the  nation  are  presided  over  to  day  by  men, — ^some  of  whom 
lately  sought  to  subvert  the  government, — and  others  to  promote  its  im- 
mediate annexation.    They  are  loyal  citizens  now,  and  so  are  we.    Time 
cbanges  conditions  and  works  marvels  aod  time  will  accomplish  the  great 
destinies  of  ibis  country, — and  let  us  hope,  in  a  manner  most  conducive  to 
tbe  happiness  of  its  people.    In  such  a  case,  though  my  theories  should  be 
exploded,  my  hopes  would  be  fulfilled.     Let  us  hope,  too,  whatever  be- 
tides, — in  thJB  great  crisis  of  our  history,— -for  an  advancing  intelligence*- 
of  brotherhood  and   toleration  among  us.    And  let  us  prayerfully  com* 
>nend  our  country,  its  future,  its  people,  to  the  gracious  protection  and 
guidance  of  tbe  great  Father  of  Nations. 


849  THK  GOLD  ouQuss.  [NcvemhTj 


TEE  OOID  ClltUSI. 

There  is  one  question  which  the  puhlic  are  anzionsly  asking  aboot  the 
2old  cHqnes,  naraelj  x  what  are  the  names  of  its  membera.  Other  tbiogs 
the  people  hare  been  toM  with  the  most  ready  frankness,  bat  this  it  is 
much  a  mystery  as  ever.  It  is  known,  fur  example,  tiUit  the  capitd 
actuall}  owned  was  small,  and  the  length  of  time  in  which  the  clique  wts 
at  work  was  much  less  than  was  supposed.  A  competent  authority  up 
that  ten  or  twelve  days  only  elapsed  between  the  first  purchases  of  tlte 
clique  at  185,  and  its  do&ing  transsactions  at  160  or  over  on  Friday,  the 
fatal  24th  of  September.  We  are  also  told  that  up  to  the  rery  dsy  pre* 
viou9,  the  clique  did  all  its  business  through  its  brokers,  Smith,  Goold, 
Martin  &  Co.,  who  employed  other  brokers,  and  carried  on  their  scbems 
80  skilfully  and  quietly  that  they  bought  25  millions,  at  least  withoot 
putting  up  the  price  beyond  187^  until  the  22d  September,  when  they 
purposely  advanced  it  to  141^,  and  later  to  149^.  The  25  millions  of 
purchased  gold  is  supposed  to  have  cost  an  arerage  priee  of  139,  and  wis 
freely  loaned  to  the  bears,  considerable  sums  of  money  being  called  op  ts 
margins  with  every  successive  advance  of  the  qnotatione.  In  embnidag 
this  policy  the  clique  appear  to  have  adopted  the  maxim  of  Napoleon, 
which  was  that  '*  the  enemy  should  always  bear  the  ooet  of  the  war." 
The  clique,  by  lending  not  only  received  the  money  back  which  they  had 
paid  for  it,  but  got  their  gold  ^'carried"  for  nothing,  compelled  their  oppo* 
Bents  to  pay  them  interest  for  the  privilege  of  ^'carrying^  it,  and  called  op 
margins  so  as  to  obtain  new  funds  wherewith  to  go  into  the  market  agato 
to  make  fresh  purchases. 

Up  to  Thursday,  the  23d  of  September,  everything  worked  like  a  cbaroL 
But  on  that  day  something  happened.  The  Tenth  National  Bank  vas 
visited  by  those  polite  gentlemanly  men  from  Washington,  who  at  <»06 
began  to  examine  the  books  of  the  bank.  A  cheque  for  a  million  of  dollars 
drawn  by  the  dtque  was,  it  is  affirmed,  refused  certifioation,  as  the  hack 
examiner  inspected  every  cheque  which  came  in  and  was  partieolarly 
careful  to  see  that  the  law  was  not  violated,  which  re<|ttires,  on  paio  of 
forfeiture  of  franchise,  that  no  bank  shall  certify  cheques  ahead,  or  shall 
lend  to  any  one  firm  or  individual  more  than  one-tenth  of  its  capital. 
The  bank  machinery  of  the  clique  was  thus  disorganised.  It  was  asdesB 
to  apply  elsewhere.  Fortune  was  deserting  the  gold  gamblen.  Soeh 
is  the  story  which  has  been  told  in  Wall  street,  publisbed  withoot  ooo* 
tradiotion  in  the  newspapers  and  believed  by  well-informed  persoss  lO 
t>e  true.  The  next  movement  was  to  save  Gould,  Martin  d(  Oo^  tfpoai' 
ble,  from  the  ri»k  of  failure  by  a  method  which  we  will  quote  from  a 


1869]  TRB    OOID  0LIQX7XS.  948 

morning  paper  that  bas  evidently  obtained  accefls  to  authentic  informa- 
tion and  claims  to  speak  by  authority.    The  Sun  of  yesterday  says : 

"  On  that  Thursday  night  the  clique  determioed  to  bring  their  scheme  to  a  head. 
They  had  gold  enough  to  enable  them,  as  they  supposed,  absolafcely  to  eootrol  the 
market ;  and  their  game  was  to  press  the  price  to  the  utmost,  and  gather  in  the 
margio?  on  their  immense  loans,  or  compel  settlements  at  such  figures  as  they 
might  dictate.  In  order,  howerer,  to  earry  out  this  scheme,  it  would  be  necessary  to 
keep  on  buying  gold  to  make  a  market.  They  did  not  want  any  more  gold,  but 
rather  desired  to  sell  what  they  had,  and  gamer  up  their  winnings.  Q-Ad  was 
intrinsieally  worth  but  about  186,  to  which  price  it  must  tneyitably  fall  when  the 
moremeot  should  be  accompliehed ;  and  those  to  whom  the  clique  should  sell  at 
the  high  prices  to  which  they  intended  to  force  the  market,  must  uf  necessity  be 
raine^.  The  gold  that  the  clique  would  hare  to  buy  in  forcing  up  the  price  wiiold 
aleo  be  a  dead  loss  to  them  should  they  be  compelled  to  carry  it.  In  tliia  dilemma 
they  apparently  determined  on  playing  the  stale  game  of  letting  some  of  their  own 
party  break,  while  the  others  were  to  ba?  the  spoils,  and  hold  them  until  the  final 
division.  This  was  the  scheme,  and  one  of  its  features  was  that  Smith,  GK>uId,  Martin 
A  Go.  were  to  be  kept  afloat.  Accordingly,  on  Friday  morning  the  base  of  operations 
was  changed  from  the  ofilce  of  that  firm  to  that  of  Wm.  Heath  A  Co.,  from  which 
place  all  the  orders  of  the  clique  now  emanated,  while  Smith,  Gould,  Martin  (k  Co., 
as  a  firm,  were  left  to  operate  ostensibly  on  their  own  account." 

How  gold  was  on  ihe  following  day  foroed  suddenly  and  amid 
unparalleled  excitement  to  162^  from  whioh  point  it  fell  to  130  in  a  few 
minutes  on  the  announcement  of  Mr.  Boutwell's  intended  sale  of  four 
millions — all  this  is  fresh  in  the  memory  of  our  readers  and  will  form  one 
of  the  moat  notorious  practicea  ^f  this  great  gambliug  fiasco.  The 
catastrophe  had  not  taken  place  until  the  clique  had  bought,  through 
Albert  Speyers  88  millions,  through  Belden  &  Co.  30  millions,  through 
Smith,  Gould,  Martin  &  Go.  25  millions,  and  through  other  parties  16 
millions  more.  The  whole  amount  was  108  millions  and  was  bought  in 
the  space  of  two  or  three  hours  by  a  clique  of  desperate  men  whose 
united  capital,  all  told,  did  not  probably  reach  two  millions  of  dollars* 
The  example  of  such  bold  audacity  was  infectious.  The  108  millions 
which  the  clique  claim  to  have  bought  stimulated  the  crowd  in  the  gold 
room  and  an  aggregate  of  500  millions  of  gold  is  supposed  to  have  been 
bought  and  sold  on  that  memorable  Friday  forenoon. 

These  are  some  of  the  facts  which  the  gold  clique  have  allowed  to 
transpire.  They  have  even  been  communicative  enough  to  tell  the  world 
th&t  on  Thursday  night  they  had  gained  four  millions  of  dollars;  that  on 
Friday  the  operations  of  Smith,  Gould,  Martin  &  Co.  resulted  in  a  loss 
of  over  3^  millions,  reducing  the  profit  of  the  clique  from  4  millions  to 
(376,250  if  they  could  successfully  carry  out  their  scheme  of  repudiating 
everybody  else  and  carrying  that  firm  safely  through.  If,  however,  the 
clique  shall  be  compelled  to  stand  by  all  their  other  brokers,  including 
Speyers,  Heath,  Belden  and  others,  then  they  stand  to  lose  on  the  whole 
of  the  transaction  the  prodigious  sum  of  (13,645,000.  The  imagination 
almost  refuses  to  credit  the  unparalleled  boldness  of  the  schemes  whioh 


have  been  fa«re  partially  unfolded  to  our  view.  If  the  BtatenMDtB  had  boI 
been  published  wiA  a  positi?e  claim  to  anthentidty  we  should  not  ban 
ventured  to  put  them  on  record.  We  do  not  vouch  for  the  accuracy  of 
the  facts,  but  they  are  believed  to  be  at  least  approximately  true.  la  saj 
case,  there  is  abundant  evidence  that  this  clique  movement,  like  almost 
every  other  ^*  pool "  that  has  at  any  time  been  oi^niaed  in  Wall  street^ 
has  inflicted  loss  on  its  members,  whatever  gains  outside  parties  may  hare 
made  by  it.  The  prodidgious  extent  of  the  losses  in  this  case  will  Isod 
no  small  importance  to  the  query  with  which  we  b^an.  Who  were  the 
members  of  the  gold  clique! 


m^^0^^i0*0^0*^^0mm^0^ 


GOTfiKNIBNT  PUKGIASBS  SF  BONDS. 

The  amount  of  bonds  purchased  by  the  Secretary  of  the  Treasury  sod 
held  by  him  under  the  Sinking  Fund  act,  or  subject  to  the  future  direr 
tion  of  Congress,  has  now  reached  the  large  sum  of  $57,773,000.  At 
the  first  purchase  was  made  on  the  12th  of  May,  the  period  in  winch 
this  amount  has  been  taken  off  the  market  is  only  about  five  months. 

The  table  given  below  contains  the  details  of  each  purchase  of  boodi 
thus  far  made ;  showing  the  date,  the  total  amount  offered  each  timei 
the  amount  of  each  class  of  bonds  accepted,  and  the  total  amount  of  each 
class  now  held  by  the  Secretary  of  the  Treasury.  It  has  l»een  compiled 
with  much  difficulty,  from  the  fact  that  the  reports  published  in  tbe 
newspapers  are  frequently  erroneous  in  some  particulars,  and  correct 
results  could  only  be  obtained  by  comparisons  and  further  examination* 

The  facts  obtained  from  the  figures  below  in  regard  to  the  general 
movement  of  Government  Securities,  are  of  much  interest.  We  find 
that  the  coupon  bonds  of  1867  have  been  purchased  more  largely  thia 
any  other  class,  amounting  to  114,733,650.  Next  come  the  coupon  bonds 
of  1865  new,  amounting  to  111,418,850,  and  next  the  registered  issue  of 
1862,  amounting  to  16,355,050.  The  coupons  of  1862  show  the  smallest 
figures,  the  total  purchased  being  qnite  insignificant. 

The  amount  of  each  class  of  bonds  held  by  the  Secretary  beoomei 
of  importance  in  regard  to  the  item  of  accrued  interest,  and  the  additiooil 
purchases  made  by  him  to  represent  matured  coupons ;  the.  total  amonnt 
of  January  and  July  bonds,  and  of  May  and  November  bonds,  can  here 
be  seen  at  a  glance.  It  is  also  desirable  that  dealers  in  government  seer 
rities  should  have  a  record  of  the  amount  of  each  issue,  registered  sod 
coupon,  taken  off  the  market. 


1869] 


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846  TBK  UtSSOKS  OT  tHI  0RX8IB*  [ilToiMlhr, 

TIB  IS880N8  OF   THE  CBISU. 

The  late  disaster  in  Wall  street  is  to  be  prised  for  its  lessons  if  not  for 
its  losses.  It  was  the  result  of  a  speculation  wholly  faetitioai  snd 
unnatural.  A  ring  of  speculators,  with  large  capital  and  equal  daring, 
undertook  to  control  the  entire  supply  of  gold  upon  the  market  Their 
operation  was  not  based  upon  any  natural  tendency  of  the  premiom; 
on  the  contrary,  the  common  conviction  that  the  piice  of  gold  mot 
decline  bad  induced  very  general  sales  for  future  delivery ;  and  it  wasnpoo 
these  transaotions,  coincident  with  the  bent  of  the  market,  that  the  clique 
undertook  to  force  the  premium  in  an  opposite  direction.  Tfans  the  speeo- 
lation  was  an  effort  to  coerce  the  gold  market  against  its  natural  direotioo; 
and  to  this  circumstance  it  owes  its  failure  and  its  minoua  results.  The 
more  the  clique  advanced  the  price,  the  more  unreasonably  high  did  it 
appear,  and  the  greater  became  the  apparent  inducement  to  aelL  Throagli 
this  sort  of  manoBuvering,  the  time  contracts  to  deliver  gold  were  swelled 
to  an  amount  immensely  exceeding  the  atock  of  gold  upon  the  mtrkeL 
The  sales  were  made,  as  we  have  stated,  upon  correct  viewa  as  to  the  reil 
Talue  of  gold ;  but  the  deliveries  bad  to  be  made  by  coin  to  be  fint  bo^ 
rowed  and  ultimately  purchased  from  the  very  parties  to  whom  it  had  been 
sold ;  hence  the  clique,  having  the  sellers,  as  they  supposed,  entirely  in 
their  power,  attempted  to  compel  them  to  buy  in  the  gold  from  them  at 
20  to  80  per  cent  above  the  figures  at  which  they  had  originally  bougiit 
np  the  market  supply.  Had  the  scheme  succeeded,  the  street  would  bare 
had  to  purchase  from  thirty  millions  to  forty  millions  at  20  to  30  peroeot 
above  the  price  at  which  they  sold  it ;  with  the  result  of  a  transfer  of 
about  ten  million  into  the  pockets  of  the  combination* 

Such  a  speculation  can  be  regarded  in  no  other  light  than  as  the  moit 
reckless  and  licentious  gambling ;  and,  as  such,  it  may  be  taken  as  sb 
illustration  of  the  dangers  of  illegitimate  speculation.  The  sellers,  whOe 
relying  upon  the  natural  course  of  the  premiumi  oonld  not  hot  be 
aware  of  the  character  and  power  of  the  soLeme  against  which  they  were 
contending ;  and,  so  far,  they  were  as  reckless  as  the  clique.  And  this 
bet  further  shows  how  easily  the  spirit  of  wild  speculation  may  sedoee  s 
large  proportion  of  the  brokers,  including  firms  of  respectable  staodiogi 
into  operations  risking  an  enormous  amount  of  capital  upon  chances  jnst  is 
fickle  and  uncertain  as  those  of  the  faro  bank. 

The  culmination  of  this  speculation  was  attended  with  circumstaneei 
by  no  means  creditable  to  the  business  morals  ot  Wall  street  Wfaeo  il 
was  discovered  that  the  combination  had  drawn  the  street  into  eogage- 
ments  involving  enormous  losses,  and  that  the  game  was  a  hearily  losiof 
one,  thero  was  in  many  cases  an  effort  to  evade  or  directly  repndiite  ooa* 


1869]  THX  LUSOKS   OT  THS  OBIfilS.  847 

tracts  ;  street  honor^  hitherto  the  chief  protection  of  Wall  street  dealings, 
being  regarded  as  secondary  to  the  preservation  of  something  from  the 
common  wreck  of  fortunes*  We  do  not  pretend  to  judge  whether  the 
gambling  character  of  the  operations  does  not  in  some  measure  palliate 
these  evasions  of  contracts ;  hut  we  do  hold  that  it  is  a  matter  of  profound 
hamiliation  and  regret  that  houses  of  fair  standing  in  the  financial  com- 
munity, and  entrusted  with  important  transactions  bj  the  public,  should  be 
found  willing  to  engage  in  operations  leading  to  such  dishonorable  expe- 
dients for  self-protection. 

It  should  be   learned  from   the  experience  of  those  two  weeks  that  the 
dangers  connected  with  excesses  in  speculation  do  not  end  with  the  mere 
losses  on  contracts.    In  the  present  case,  we  have  witnessed  a  derangement 
in  the  whole  machinery  of  Wall  street.    The  recklessness  with  which  deal- 
era,  within  one  or  two  hoars,  rushed  into  contracts  covering  many  millions 
of  gold,  at  immfnse  differences  of  price,  of  necessity  produced  a  sadden 
convulsion  in  credit  operations.    It  was  seen  that  many  mast  be  injured 
or  ruined ;  and  the  uncertainty  as  to  who  might  be  the  losers  caused  an 
indiscriminate  caution  among  the  banks  and  money  lenders  generally,  so 
that  for  a  time  money  could  hardly  be  borrowed  upon  any  terms.    Many 
of  the  dealers  in  gold  being  at  the  same  time  engaged  in  the  stock 
business  and  having  outstanding  engagements  in  the  Stock  Exchange, 
the  panic  instantly  spread  to  the  stock  market.    Stocks  fell  to  such  an 
extent  as  to  ezhaast  the  margins  on  which  they  were  carried  and  were 
consequently  thrown  upon  the  market  in  immense  blocks,  precipitating  a 
further  decline,  and  involving  the  weaker  class  of  holders  in  ruinoos 
losses.    The  extent  of  injury  thus  resulting  is  but  very  partially  indicated 
by  the  failure  of  several  prominent  stock  houses.    Large  numbers  of 
private  holders  of  securities  have  been  brought  to  the  verge  of  ruin,  and 
their  stock  has  been  transferred  at  panic  prices  to  the  hands  of  a  wealthier 
class,  who  are  about  the   only  parties  benefited  by  the  disaster.    Opera- 
tions naturally   tending  to  these  results   cannot   be  too  severely  con- 
demned.   They  are  demoralizing  and  mischievous  to  the  last  extreme ; 
and  those  who  engage  in  them  cannot  be  expected  to  receive  the  confi- 
dence awavded  to  prudent  men  of  business. 

If  the  Wall  street  community  cannot  feel  itself  secure  against  the  recur- 
rence of  these  dangerous  excesses,  it  is  clear  that  prudent  firms  must 
recofi^nise  the  necessity  of  protecting  themselves  and  their  customers  by 
broader  ^^  margins  "  upon  speculative  transactions  than  have  been  hitherto 
accepted.  In  times  when  speculation  was  less  rampant  and  fluctuations 
less  sudden  and  extreme,  a  margin  of  10  per  cent  might  be  deemed  an 
adequate  protection ;  but  in  these  days,  when  cliques  of  immense  wealth 
undertake  to  make  money  inaccessible  by  **  locking  up  "  millions  of  ear- 


B48  THB   BPKOtX  MOTIUSHT.  [ilTowmfaf, 

rency,  or  to  acquire  absolute  control  of  the  gold  premiam  bj  bnjing  up 
the  entire  Bupply  on  the  market,  or  to  similarly  control  the  capital  stock 
of  corporations,  it  is  evident  that  double  that  amount  of  margin  is  no  more 
than  prudence  requires.  The  inadequacy  of  the  current  rate  oi  mai^ 
is  of  itself  a  temptation  to  artificial  speculation ;  for  it  affords  an  asnmm 
that  when  prices  have  been  moderately  forced  down,  so  as  to  impdr 
margins,  a  considerable  amount  of  stock  will  be  thrown  upon  the  msilet 
An  increase  of  margins  would  call  for  enlarged  means  in  attempts  to 
depress  the  market,  and  would  correspondingly  augment  tie  risks  of 
parties  undertaking  such  operations ;  and  in  this  way,  while  the  precantioa 
would  check  illegitimate  speculation,  it  would  also  tend  to  give  themnkcft 
much  greater  stability  and  to  diminish  the  risks  of  dealers.  We  eu 
conceive  of  no  remedy  more  simple  or  efficacious  against  the  reconreooe 
of  such  disasters  as  have  recently  discredited  Wall  street  circles. 


■  ■■■■■Mil         II         ,1  JmUJn^ML   I 


THB  SPECIE  lOTEIENT. 

Owing  to  irregularities  in  the  returns  of  the  arrival  of  traaanre  from 
California,  attending  the  opening  of  the  Pacific  Railroad,  we  have  foaod 
it  necessary  to  discontinue,  temporarily  our  monthly  atatamants  of  tb« 
apecie  movement  at  this  port.  The  Pacific  Bailroad,  however,  has  insti- 
tated  a  regular  record  ^of  its  transportation  of  treasure,  so  that  we  are 
again  enabled  to  asoertain  definitely  tliat  item.  The  advertised  taki 
of  coin  by  the  Treasury  enable  ns  now  to  report  precisely  the  amoootof 
gold  coming  on  the  market  from  that  source ;  we  have,  therefore,  the  mats- 
rial  for  giving  a  more  complete  exhibit  of  the  market  movement  tfasn  hss 
hitherto  been  possible;  and  our  monthly  statements  will  be  hereaAer  oos* 
tittcied.  These  statistics  are  the  more  valuable  to  the  readers  of  tiie 
Maoazinb  on  account  of  their  being  presented  in  a  completa  form  by  oo 
other  journal.  Below  we  present  the  movement,  so  far  as  recorded  for 
each  of  the  last  five  months : 

OINKKAL  MOVKMKMT  OF  COIN  AlTO  BOLUON   AT  VKW  TOaS,  IN  XAT  AND   IVifn,  IM9. 

«pecleiiil»ankBM«yl ^ •M'MB 

TresBiirefVecelvodfiom  CSaUfoniiabyBt8Mner|  J^^^;;*-;;;;  ;;*^ 

linporto  of  specie  from  foreign  porta j  jSelV.*.V.';!lI^I!!!"!i;'.      SSIS 

Coin  IntereBt  paid  oat. ..    {  j|Jit*".V.'lIi!Ill.ll!!I!I!    8»ldl!ifra 

TreaBary  BBles  of  gold la  00<M»S— W;gW,IP 

Total  reported  Bnpply $Ci,86Uil 

Wittidiiwn  tor  export ^ j5Sne!!!!!!!!!!I!l!*.'.!!!!.  ^iSSS 

Withdrawn  for  cuBtoma {j^wiiiij  VJ^v^^^^^^^^^*  *S'^!SJ-aa.m« 

specie  in  banka  anne  as SM^^^ 


Total'witlidvawn  ttnd  In  iMmk -  i  .-,--u 
BzoeBa  of  wlUidiawala  over  reported  supply 2,]SI«8N 


1869]  lUnJtOAH  BABKIITM  90B  BS]*tKII0lK.  84^ 


GamnA&  mnman  40  amv  amd  buluoh  at  iisw  tqix  nr  pnr,  1869. 

^;>ecl«ln1>aBJaiJimet6 ^ 980,107440 

TreAenre  receiTedfiomCdlforniAbyttoamer..... 906.814 

•*  ••  »•        OTnrlaad «7a.048 

Importo  from  foreign  porta 101,868 

Cobi  Inter.  St  pAidont....^ n,88l.4«5 

'Ireasaiy  MleB  of  gold 8,000«000-31,a64;n0 

TotAl  raportfld  rapply •* $41,641,819 

Withdrawn  for  export...  •^ $tt,474,(iS4 

Witbdrawo  for  cnstoma 10«5Q2,045^16,976.609 

Specie  In  bank  Joly  81 97,871,r 


Total  withdrawn  and  in  bank $44,848,009 

tepcaaa  of  withdnwyato  oyer  rtportad  anpp^. .     8,387,856 

o»BftAL  Mommrr  of  oonr  and  bdluow  at  mnr  tobx  nr  aoo.,  1869. 

Speef  e  in  banks  Jnly  81    $87,971, 

Treasure  receiTed  ftom  CaUfoniia  by  steamer 6184,977 

"  "  ••       oreriand. ....     Z^^i 

Imports  fWnn  foreign  ports - 159,987 

Coin  Interest  paid  oat 1,^7,988 

Treasnry  sales  of  gold 8,000,000—4,651,811 

Total  reported  snpidy $33,488,144 

Withdrawn  for  export $8,087,040 

Withdrawn  for  costoiaa 14,8i«,91fr-17,847,685 

Specie  m  banks  Angnst  88 ^ ^^ .:.., 10,460,108 

ToUl  withdrawn  aad  in  banks $86,816,067 

jboeas  of  withdrawals  orer  reported  supply • 4,898,616 

eSNBBAI.  MOTBCBHT  OF  ODIN  AND  BULLION  AT  NKW  TORX  IN  8ZFT.,  1869. 

Specie  in  b^nks  Angast  88 $19,469,109 

I'reaenre  recelTed  Qom  California  by  steamer $h],974 

"  "       oreiland 1,6S7,«89 

Imports  fhmi  foreign  porta..  •  ..•    1,611,487 

Coin  li  tere»t  paid  ont. 4,858,888 

Treasniy  ales  of  gold «...    6,000,0UU— 18,619,068 

Total  reported  supply $81,068,190 

Withdrawn  for  export $1,886,170 

Withdrawn  lor  autOBS 19,6^,835—14,380.495 

Specie  in  banks  October  8 I&,9u8,819 

Total  withdrawn  and  in  bank • ..  $90,948,814 

Bzcesa  of  reported  supply  not  acconnted  for .^ 8,840^810 


SAILROAD  EASNINBS  FOR  SEFTBIBBR  ANO  FOR  TEN  I0NTH8  FROM  JAN. 

1  TO  OCT.  1. 

By  6pecial  effort  id  obtaining  information  direct  from  the  offioed  of 
several  companies,  we  have  been  able  to  compile  our  monthly  staiement 
of  Railroad  Eaminiss  at  a  mnch  earlier  date  than  usual. 

The  general  statement  is  quite  favorable,  many  of  the  roads  showing  an 
increase  over  the  same  month  of  1868,  while  the  decrease  shown  on  sev- 
eral others  seems  to  be  quite  saiisfactorilj  aooounted  for  by  temporary 
and  special  caused. 

It  must  be  remembered,  in  comparing  the  months  of  September  and 
October  with  the  same  months  of  1868,  that  the  earnings  io  those  months 
last  year  w«re  very  large ;  the  grain  crop  was  hurried  forward  at  the 


West  with  great  urgeooy,  and  lome  of  the  Weeiem  loads  doubled  thur 
receipCe  daring  that  period,  bat  fell  off  again  quite  aa  Bnddeolj  in 
November.  The  prospect  for  permanent  heavy  traffic  on  the  priDcipal 
lines  of  railway  at  the  West  was  never  better  than  now ;  tlie  cropft  tn 
large  and  the  country  in  good  condition,  with  an  immigration  of  settloi 
which  is  developing  the  lands  adjacent  to  rulroad  lines  with  wonderM 
rapidity. 

In  the  case  of  Milwaukee  and  St.  Paul  Boad,  which  shows  a  coneider- 
able  decrease  in  earnings  for  the  month,  the  fidling  off  ia  fully  acoouiad 
for  by  the  circumstance  that  spring  wheat  moved  to  market  quite  three 
weeks  later  this  year  than  last ;  a  million  bushels  more  of  wheat  ip«n 
shipped  over  the  road  in  September,  1868,  than  in  the  same  month  this 
year.  Wheat  is  now  coming  forward  freely,  and  the  earnings  of  the  Isst 
week  in  September  were  very  large. 

The  consolidated  lines  of  the  Lake  Shore  and  Michigan  Southern 
Railway  from  Buffalo  to  Chicago  show  a  fair  increase  in  earnings,  and  it 
will  be  noticed  that  this  is  now  among  the  few  linea  whoee  figures  for 
the  month  exceed  a  million  dollars. 

In  the  table  below  we  give  the  earnings  for  the  past  ten  montb  of 
the  year,  in  which  it  will  be  observed  that  all  the  roads  show  an  incresse^ 
with  a  single  exception. 

Two  companies  are  omitted  from  this  statement,  bo  oomparison  for  the 
year  being  possible. 

miumiM  FBOx  jJoruABT  1  TO  amxBEB  80. 


18C9.  1868.  lac            Stt. 

rhicago  and  Alton $3,4«I«S86  $t,SS8,e98  f»9,6a0 

CtactKO  *  Northwestern 9,9:«,418  91,713,888  t3«,0€7 

Chicago,  Rock  Island  AFmUIc a.88(MQ8  8.806,980  4t4jm 

Illinois  Ceoiial 6,1MJ^  5.58»,1U  ns,6U 

Marietta  *  Olnclnnatf t,0R80S  9X1,471  M.884 

Mlcblgan  Central 8,4as,480  8.158,488  l'n,9SS 

MUwankee  *  bt.  Pan! 4,81M18  4,464,886  807,881 

Ohio  *  Mississippi 9,084,576  9,168,S18  ....        1IB.CR 

Bt.  Louis,  Alton  4k  TeneHsnte l,4Q0,9tf9  l»88i^lO  68,438 

Toledo, Wabash* Western 8,107,060  9,800,588  ll8»48t 


»    « * 


Total $i9,97B,996    $36,881,019     $1,899^914    $llB,Or 

lABHiKGs  voa  nmMBXB. 

1868.         1888.  £k.  Dm. 

Chiesgo  *  Alton $801,958  $486,198  $18,089       I-.. 

Chicago*  Northwestern I,8t],ia8  1>18;488  ....      m,SM 

Chlcaieo,  Rock  leliind  A  Psdflc 079,0u0       558,886  90,614 

CleveUiKl,  <  'ot.,  Cinn  *  Indinnap<dis 8l7,eoi       967^451  «V880 

lUinols  Central   OiN090       888,968  9^054 

Lake^hore*Mlohi^n8onthe^l 1»968.785  1J07,488  8i,«99 

MarletU  A  UlncinnaU 149,478       ltl,M9  18,0M 

Michigan  Central 478,548       458,994  18.879  •:•• 

Milwunki^  A  St.  Panl 794,614  1,084.045  ....      9M.SS1 

Ohio  *  M  ssisslppi 968,808       801,198  ....       HSI 

St.  Lonis,AltonATerreHante 900,190       198^486  8,691 

Toledo^  WaUah  A  W«at«m «I0,798      4n»908  98,ftl7 


•»•• 


.... 


.»•• 


$7,188,198  $7,88l|8rr   $196^016  $811,191 


1869]  IlJLlLROAb   CAStJAUtllS.  35l 

BilLROiD  CASUAUTIES. 

The  lately  published  report  of  the  State  Eogineer  and  Surveyoir  (oit  iht 

year  1 868,  contains  many  interesting  facts  concerning  the  railroad  systent 

of  New  York  and  its  practical  management  by  the  companies  controlling 

the  various  lines  throughout  the  State.    Among  these  the  statisUca  of 

accide!nts  resulting  in  the  killing  and  wounding  of  passengers  and  othei0, 

are  worthy  of  especial  attention.    For  th^  year  ending  Sept.  80tb,  1868) 

the  Erie  Railway  carried  2,194,348  passengers.    The  number  of  miies 

run  by  passenger  trains  was  2^4?1,694,  and  the  average  rate  of  speed 

per  hour  was  26  miles  for  ordinary  trains  and  30  for  express  trains.    The 

length  of  the  road,  including  branches,  is  821  miles.    During  the  year 

29  passengers  were  killed  and  86  injured  on  this  road,  the  greater  part 

of  whom  were  the  victims  of  the  memorable  disaster  at  Carr's  Rock,  on 

the  14th  of  April,  1868.    The  New  York  Central  during  the  same  period 

carried  3,679,150  passengers;  its  passenger  trains  running  an  aggregate 

of  1,990,150  miles,  at  an  average  speed  of  SO^-  miles  per  hour.    The 

length  of  the  road  is  297.75  miles.    During  the  year  no  passengers 

were  killed,  and  only  six  injured.    On  the  Hudson  River  Bead  during 

the  year  the  number  of  miles  run  by  passenger  trains  was  805,628,  and 

the  average  speed  31^  miles  per  hour.    This  road  is  144  miles  long, 

and  has  double  tracks  for  the  entire  distanxse.     Of  the  2,129,288  passen- 

gers  carried,  none  were  killed  and  only  five  injured.    The  New  York  and 

New  Haven  Railroad  carried  during  the  same  period  2,192,989  persons^ 

running  657,89?  passenger  trains,  at  an  average  speed  of  31^  miles  an 

hour.    This  road  is  62i  miles  long.    During  the  year  no  passengers  were 

killed,  and  but  three  injured.    On  the  Rome,  Watertown  and  Ogdensburg 

and  the  New  York  and  Harlem  roads,  carrying  respectively  497,333  and 

1,667,578  passengers,  none  were  killed  or  injured  during  the  year.  These 

figures  show  that  the  main  lines  of  the  State  are  well  and  carefVdly  man^ 

aged.    Leaving  out  the  Erie  Road,  on  which  26  were  killed  and  72 

injured  by  the  one  unfortunate  accident  before  mentioned,  the  returns 

show  that  on  four  other  roads  above  named  but  one  passenger  was  injured 

for  every  316,000  miles  run.    Counting  in  the  Erie,  the  ratio  is  one  killed 

for  every  194,871  miles,  and  one  injured  for  every  58,252  miles  traveled 

by  passenger  trains  during  the  year. 

Considering  the  extent  of  the  business  done  on  our  principal  roads,  and 
tte  average  speed  at  which  trains  are  run  on  them,  the  number  of  killed 
and  wounded  is  comparatively  small.  Unfortunately,  however,  this  can- 
not be  said  of  American  roads  in  general.  Scarcely  a  day  passes  without 
the  telegraph  bringing  information  of  one  or  more  accidents,  more  or  less 
Serious  in  their  consequences,  that  have  occurred  during,  the  preceding 

3 


9B2  nkUAOAD  OASVAunvB.  [WiwmU\ 

Iweoty-four  hovre.  Not  long  since  we  noticed  seven  of  IheM  annoQUM- 
ments,  reporting  the  violent  death  or  terere  Snjurjof  fifteen  penou  id 
«H,  in  one  issue  of  the  daily  jonmals  of  this  eity.  80  Ireqaenti  indeed^  tr» 
these  so  called  *'  aocidents*'  that^  unless  the  attendant  cjrcomatancw  sre 
peculiarly  aggravated,  or  the  list  of  killed  and  wounded  eioeplionillj 
large,  they  seldom  attraci  more  than  a  paosing  notice  oatude  of  th» 
Beighborbood  where  they  occur.  The  statistics  of  r«lway  easasitiei 
show  that,  during  a  period  of  fiftteen  years  from  1863  to  1868,  incloafe, 
the  nnmber  killed  on  the  railroads  of  the  United  States  was  2,953i,  isd 
the  number  wounded  10,500.  When  to  this  aggregate  we  sddtke 
nmnber  of  casualities  occurring  this  year,  it  will  be  seen  that  nilrosd 
travel  in  this  oountry  is  dangerous  in  the  extreme. 

Clearly,  there  is  something  wrong  in  the  system  of  ssani^genMDt 
adopted  on  most  of  the  roads  in  the  United  States  that  should  be  prompdj 
and  effectually  remedied.  Such  frightful  tables  of  mortality  are  aolesid 
of  throughout  Europe.  It  is  stated  that  during  a  period  of  nearly  hu 
years  but  three  accidents  have  occurred  on  European  railways  teMltisg 
in  injury  to  the  persons  or  property  of  passengem;  and  in  each  of  tkeM 
instances  the  causes  were  practioally  beyond  the  control  of  those  respos- 
sible  for  the  management  of  the  roads  on  which  they  happened.  Sappos* 
ing  our  railroada  to  be  well  built  and  properly  equipped,  as  a  doe  regard 
to  the  safety  of  passengers  requires  they  shonid  be,  it  ia  oTideot  that  the 
greater  degree  of  danger  attending  railroad  travel  in  the  United  Suia 
than  in  Europe  is  mainly  attributable  to  the  want  of  a  proper  system  («f 
management.  Experience  has  shown  that  trayel  by  rail  can  be  inaoi 
both  safe  and  expeditious,  as  it  is  in  Europe  at  the  present  time;  sod 
this  is  accomplished  by  very  simple  expedients. 

First  and  ioremost,  perhaps,  is  the  fact  that  the  maaagen  of  all  public 
works  in  Europe  are  held  to  a  stricter  accourtability  by  the  govenmeBt, 
as  well  as  by  pnblio  opinion,  than  they  ever  have  been  in  this  couDtiy. 
This  is  seen  in  many  ways.  In  the  matter  of  punctuality  alone,  tlM 
contrast  between  the  operations  of  European  and  American  roads  is 
marked  and  striking.  Every  trip  is  made  with  unfailing  regulsritj 
according  to  the  tables,  in  consequence  of  which  no  time  is  lost  by  debji 
to  be  made  up,  as  too  often  happens  in  this  country,  by  sudden  dssbei 
of  extraordinary  and  dangerous  speed.  So  great  is  the  vigilance  enr 
deed  that  it  is  known,  at  any  moment,  precisely  where  a  train  is ;  snd 
no  train  is  allowed  to  start  out  on  a  venture,  without  its  being  certaii 
whether  the  way  is  dear  or  not.  As  the  tracks  are  always  double,  dirwt 
collisions  are  impossible,  and  as  the  position  and  movements  of  every 
train  are  known,  obstructions  are  always  removed  in  tioM  to  ksva  s 
dear  track  for  pamenger  trdns*    No  doubt  the  prindples  of  this  ijtkm 


1860]  EAitROAD  oAxnAuntB,  ZBZ 

of  mauagement  are  Bominiilly  adopted  on  eyerj  American  railroad;  bnt 
the  want  of  greater  vigilanoe  in  the  ob^enrance  of  mles  and  regulations, 
on  the  part  of  engineers  and  oonductors,  and  the  willingness  to  take  risks 
which,  even  if  nnsuccessful  and  disastrous,  will  be  allowed  to  pass  nnpun- 
isbed,  have  led  to  most  of  Uie  accidents  occurring  on  our  roads. 

Another  reason  for  the  greater  safety  of  railway  travel  is  the  careful 
police  of  ever?  part  of  the  roads.  Experienced  and  trustworthy  watoh- 
men  are  stationed  at  frequent  intervals  along  the  road,  whose  duty  it  is 
to  see  that  the  section  of  track  under  their  charge  is  safe  and  free  from 
obstruction.  In  this  important  particular  the  management  of  most  Ameri* 
can  roads  is  essentially  defective.  Not  long  since  an  accident  occurred 
on  the  Pennsylvania  Central,  killing  two  men,  seriously  injuring  a  num- 
ber of  otherpy  and  destroying  much  valuable  property.  Tbe  cause  of  the 
disaater  was  a  huge  fragment  of  rock  that  had  fallen  on  the  track,  and 
remained  there  undiscovered  until  the  train  was  wrecked  on  it.  In 
Europe  such  an  accident  never  has  and  never  could  happen.  Every  foot 
of  road  is  there  inspected  before  and  after  the  passage  of  each  trxin, 
and  the  engineers  are  never  out  of  sight  of  one  of  these  vigilant  watcli. 
men  for  a  longer  time  than  two  or  three  minutes.  Consequently  we 
never  hear  of  stray  cattle,  fallen  rocks  or  other  obstructions  in  the  ik  ny 
of  passing  trains,  no  one  tampers  with  the  rails  or  misplaces  the  switches, 
nor  are  draws  left  open,  or  culverts,  bridges  or  embankmenls  waslieil 
away,  without  the  fact  being  known  in  time  to  prevent  accident.  In  the 
United  States  there  are  thousands  of  miles  of  railroad  that  are  n-jt 
carefully  policed  oflener  than  once  a  week,  if  as  often ;  and  it  is  only  a 
wonder  that  on  these  long  stretches  of  neglected  track  acddento  are  not 
of  more  frequent  occurrence.  The  cost  of  maintaining  a  laige  force  of 
intelligent  and  experienced  men  as  watehroen  is  unquestionably  great; 
but  we  have  no  doubt  that  the  amount  thus  saved  in  the  prevention 
of  needless  and  costly  accidents  on  American  roads  would  more  tbnn 
cover  the  expense  thus  incurred  by  the  companies. 

When  an  acddent|  however  slight,  occurs  on  any  of  the  riulways 
thionghout  Europe,  a  thorough  and  searching  investigation  is  ataonce 
inatitnted  by  tbe  public  anthorities,  as  well  as  by  the  oflScers  of  the  com- 
pany on  whose  line  it  happens,  and  when  carelessness  or  negligence  is 
proved,  the  guilty  officials  are  punished.  On  one  of  the  French  railroads 
the  misplacement  of  a  switch,  which  turned  the  train  from  ite  proper 
course,  was  followed  by  the  sentence  of  the  switeh-man  to  a  heavy  fine 
and  term  of  imprisonment,  although  no  one  was  seriously  injured.  In 
another  case  a  division  superintendent  was  sentenced  to  three  years' 
imprisonment  for  the  delay  of  a  train,  resulting  in  %  collision  by  which  one 
pasienger  was  killed  and  otheia  wounded.    In  this  country  tbe  heaviest 


354  THE  LomsyxLLE  OOKVSRTIOK.  [AovMtier, 

penalty  awarded  for  such  offences  would  be  diBmiseal  from  tbe  employ 
of  the  oompanj — although  such  a  disgrace  would  not  prerent  the  gnihy 
person  from  engaging  elsewhere  in  the  same  ponlion.  Or,  pethaps,  t 
coroner's  jury  will  be  empanneled  to  take  evidence,  and  the  result  will  be  a 
vote  of  censure.  An  illustration  is  seen  in  th>)  case  of  GriflSo,  the  Erie 
engineer,  whose  carelessness  caused  the  recent  disaster  at  Mast  Hope, 
and  who  was  lately  acquitted  after  a  formal  trial,  in  which  his  guilt 
was  clearly  proved  by  the  evidence  adduced.  Pecuniary  damages  are 
sometimes  awarded  to  a  few  of  the  principal  sufferers,  who  can  afford  to 
sue  the  companies,  but  bejond  this  nothing  is  ever  done  and  the  matter  is 
quickly  forgotten. 

We  do  not  expect  too  much  of  the  railroad  companies.  It  is  unressos- 
able  to  demand  that  railroad  travel  shall  be  attended  with  no  risk ;  bat  it 
cannot  be  denied  that  it  may  be  made  fiir  safer  than  it  now  or  ever  hn 
been  in  the  United  States.  The  fact  that,  with  but  few  exoeplioos, 
accidents  are  prevented  in  Europe,  and  that  in  these  cases  aomebodj 
can  be  held  responsible  and  punished  accordingly,  shows  that  with  a  sjstam 
of  management  equally  perfect  in  all  its  details,  the  number  of  cssaafiJei 
occurring  on  American  Railroads  might  at  least  be  greatly  redooed. 


TIB  lODISTILLB  CONTBNTlOR. 

Before  the  war,  Southern  Commercial  Conventions  were  oomroos 
enough.  There  was,  however,  much  of  fretfuiness  and  disaatisfnetioo  is 
them,  and  they  were  most  emphatically  seetional.  Sinco  the  war,  this 
has  all  changed,  several  commercial  conventions  having  been  held  at  tb« 
South,  but  in  each  there  has  been  manifest  far  more  of  a  nation >!  itpirit 
than  had  animated  their  predecessor?.  The  last  great  gathering  «a» 
at  Louisville,  Ky.,  on  the  13th  inst.,  to  which  delegates  appeared  from 
29  Slates.  Of  the  whole  number,  (more  than  520  in  all,)  277  were 
from  Southern  States,  107  from  Western,  and  32  from  the  Esstera  ssU 
Middle  States.  The  Convention  had  for  its  presiding  officer  Ex-President 
Fillmore,  and  on  the  roll  of  its  delegates  were  many  prominent  merchsnt$ 
and  representative  men  of  business  from  the  various  States  from  whieb 
delegates  appeared.  There  was  manifest  a  generous  patriotism,  a  eon}- 
preheusive  public  spirit,  a  forbearing  disposition  and  an  intelligent  view 
of  the  great  cereals  of  the  country  in  the  development  of  its  resources,  so 
that  all  sections  should  be  benefited.  If  local  or  sectional  ideas  obtraded 
themselves,  or  if  politics  appeared,  these  opinions  were  checked  or  modifiedi 
and  the  action  taken  was  for  the  good  of  all. 


18G9J  THS  XK>m8yiLLX  oonynrriov.  S55 

lo  arrangiogthe  bti8ine£8  of  the  Cod veoiion,cominitte6e  were  appointed,* 
and  reports  were  made  on  the  following  subjects : 

I.  On  Southern  Pacific  Railroad. 

5.  On  Uailroads  in  Oeneral. 

8.  On  Direct  Trade  with  fiarope. 

4.  On  Immigration. 

0.  On  Finance  and  Bankiniif. 

6.  On  Maoofactares  and  Mining. 

7.  On  the  Miaaiasippi  Levees  and  Improvements. 

8.  On  the  Tennessee  river  and  its  Improvements. 

9.  On  River  Navigation,  Oaoals  and  other  Improvements. 

10.  On  Agriculture. 

II.  On  continuous  Water  Communication  between  the  Missis  ippi  river  and  the 
Atlantic  se. hoard. 

12.  Oo  the  removal  of  ohetructicns  to  a  cheap  and  easy  oatlet  through  th« 
Mississippi  into  the  Oulf. 
18.  On  MiaoellaneoQs  Bueiness. 

With  regard  to  the  Southern  Pacific  Railroad  there  were  three  re)>orti; 
one  from  a  committee  of  the  late  convention  at  Memphis,  and  a  majoritif 
and  minority  report  from  the  committee  appointed  by  the  present  convex* 
tion.  A  vast  array  of  statistics  was  given,  and  the  whole  subject  wm 
reviewed  at  great  length.  The  conflicting  views  related  chiefly  to  the 
termini  of  the  road,  and  to  the  parallel  of  latitude  in  which  it  should  btt 
constructed ;  but  the  route  finally  determined  upon  was  on  the  33d 
parallel,  leaving  to  the  legislation  of  Congress  the  terminus  on  the  Mie* 
sissippi  river.  Cloaelj^  allied  to  this  question  was  a  discussion  of  the 
influence  of  this  railroad  in  inducing  immigration,  in  opening  new  markets 
and  in  putting  an  end  to  the  difficulties  with  the  Indians.  The  resolu- 
tion embodying  the  views  of  the  convention  upon  this  point  was  as  fol- 
lows: 

Rewolved.  That  this  convention  memorialise  Congress  to  grant  the  right  of  way 
and  such  subsidies  as  may  seem  just  to  a  Southern  Pacific  railroad  from  San  Dieffo, 
Cal.,  via  the  junction  of  the  rivers  Colorado  and  Gila,  along  the  valley  of  the  Qtla, 
and  south  ot  the  same  to  El  Paso,  on  the  Rio  Qrande,  and  thence  to  a  convenient 
point  near  the  32d  parallel  of  north  latitu  ie  east  of  the  Brazos  or  near  that  river  ia 
the  State  of  Tezaa ;  to  which  main  trunk  feeder-roads  may  be  built  from  Leaven- 
worth, St.  Louis,  Kansas  City,  Cairo,  Vicksbur/,  Memphis,  New  Orleans  and  Galves- 
ton on  the  east,  and  Guaymai,  MaaatUn  and  San  Francisco  on  the  west,  aud  soch 
other  roads  on  the  east  or  west  as  may  be  desired,  with  equal  right  of  conoectioa 
to  all. 

The  second  subject  in  the  order  of  businese  was  '*  Railroads  in  General." 
The  committee  wisely  refrained  from  specifying  local  objects.  They  recom- 
mended co-operation  in  railroad  management,  the  remedy  of  breaks  and 
obstructions  in  railway  lines,  the  connection  of  tracks  and  uniformity  of 
guage.  In  tbeir  resolutions  they  urge  the  building  of  railroads  to  the 
Gulf  port*,  in  order  to  make  an  outlet  for  produce  which  seeks  a  market 
in  the    West  Indies,  in   Mexico  and  South  America,  and  they  advocated 


80tl  TBK  LomsTiLia  oovrarnxmi  [N<mmhf^ 

the  system  of  low  fores  to  pertom  intesdiog  a  settileineat,     Thej  tho 
recommended  the  coDBtruciion  of,  the  Nortkam  Bwifie  B-^lrosd. 

'*  Direct  trade  with  Europe*'  was  the  third  subject  wfaidi  eagagedthi 
time  of  the  Convention,  we  have  not  the  space  to  give  anj  portion  of  the 
interesting  discussion  upon  this  point.  The  Committee  recomnoend  tlie 
organization  of  steamship  lines  between  this  country  and  Eorope,  aad  the 
subsidizing  of  the  lines  by  Congress.  They  ask  for  a  modificmtion  of  fts 
navigation  laws  so  that  Americans  may  purchase  foreign  ships ;  tbey 
demand  the  abolition  of  the  tariff  on  shipbuilding  material,  snd  they  isk 
Congress  to  declare  ports  of  entry  all  cities  in  the  West  and  South  which 
have  a  popnlat'on  of  100,000  and  upward. 

The  ge:«eral  subject  of  "Immfgrstion"  attracted  macli  attention  and 
elicited  a  spirited  debate.  The  convention  favored  the  introdaetioa  ot  s 
million  Europeans,  and  a  comprehensive  plan  of  enlightening  Europe  open 
^he  advantages  ot  tlie  region  below  80®  30',  and  of  making  known  tbe 
fAimatic  conditions  and  industrial  resources  was  reported.  As  the  Gea- 
etal  Agent  in  this  matter  M.  F.  Maury  was  recommended.  CbimM 
Immigration  provoked  a  marked  dissonance  of  opinion.  It  was  coBcIoded 
tsi  leave  that  matter  to  the  States  and  to  private  interests.  The  debstsoo 
tWs  question  was  mainly  oon6ned  to  Southern  delegates,  and  considerirg 
liie  fact  that  the  Convention  at  Memphis  was  so  decidedly  in  favor  of  Am- 
tie  labor,  the  result  reached  here  shows  perhaps  not  so  much  a  cltsoge  is 
Sontbeni  sentiment  as  it  does  the  general  discussion  of  the  subject  and 
tbe  expression  of  hostile  views  by  men  who  were  not  members  of  tbe 
Memphis  Convention,  but  who  have  reviewed  its  action. 

On  tbe  subject  of  ^*  Banking  and  Finance"  the  Committee  made  tbe 
following  report,  the  recommendations  of  which  it  will  be  seen,  coincide 
in  the  main  with  the  views  and  plans  expiesieed  and  proposed  by  Seaalor 
Sumner : 

1.  The  weslth  of  a  comitrT  eonsisfs  I  <  the  net  value  of  its  prodocCions,  sod  tSi 
taaneisi  measures  maat  be  determiced  in  the  light  of  thb  fact 
-  t.  Curreney  it  not  a  product  of  a  eoootry,  and  h  not  property,  (mt  oqI/  a  nwfisa 
to  ftieilitate  the  exchange  of  propftrty. 

S.  Ocrreocf  Values  of  property  and  an  irredeemable  currency  regulate  tbeiDwlTw 
hf  eaeh  other,  ao  that  except  temporarity ,  the  amoaot  of  irredeemable  curreMy  is 
circulatioD  in  no  manner  regulatea  tbe  ease  of  the  money  market,  or  infloeooii  lb« 
rate  of  iotereat. 

4.  >B  irredeemable  cmreoey  retarde  pteduetioo  by  the  fliet  that  H  eaeaaarw  Am 
value  of  property  ao  unsteadilv  aa  to  deetroy  coDBdenee.  It  proatra  es  ibdinliyi 
tmaettlea  society,  and  should  be  and  can  be  taDished  from  the  naUoo's  exchaogw ; 
Hierefore 

BeaoWed,  That  OoDgreta  be  requested  to  enact  at  once  : 

1.  A.  free  banking  law,  with  efficuot  and  certain  measures  for  prompt  redenpUos 
•f  carret  cy,  with  a  proviso  tha*  correney  is  to  be  iseaed  only  as  fa«t  as  legal  tisdw 
notes  are  redeemed  and  destroyed  anfil  specie  paymeo  s  are  reaamed. 

f .  Direct  the  Secretary  of  the  Treasury  to  cancel  and  destroy  alt  legal  teedw 
aotes  that  come  hi  hia  poasesafos  as  fast  as  the  net  taoome  of  the  Goveraaieal  wiB 


1869]  TBI  LOtrtsyiiLB  oohybititov.  S5T 

«now.  To  etM  BAtiooal  h$sk  emmcf  fa  applied  flbr  fatter  thta  it  cen  be  for* 
nlal&ed  under  the  eondttioQe  berettaM,  preference  Co  b«  fiveo  first  to  the  8outk 
wod  eATond  to  the  We»t,  uotil  tbe  whole  currene/  io  ctreaUtioQ  be  eqaaHx^d  upoa 
the  baeio  of  popalatkiD. 

S.  Direct  the  Secretaiy  of  the^TVeaeary  to  rescnlate  all  hie  actiora  by  the  waota 
eod  B'^eeeattlea  of  tbe  Qoveniineat,  and  leare  the  people  to  manage  their  mooej 
markels  and  their  boBioeniD  their  own  vay. 

Tb«  proceedings  of  a  meeting  of  Southern  gentlemen  held  in  Washing  - 

ton  in  July  were  aobmitted  to  tbe  Convention.    Tiiese  gentlemen  pro^ 

posed  to  planters  to  eeli  their  products  for  gold  only,  and  a^ked  for  the 

establisbment  of  banks  under  State  laws  on  a  gold^ooin  basis.     In  regard 

to  taxation  the  Convention  asked  for  a  repeal  of  the  law  of  1801,  pro* 

vidin;^  for  a  Direct  Land  Tax*  The  tax,  they  allege,  is  not  imperatively 

needed    by  the  Oovernment,  and  its  collection    would  fall  heavily  upon 

the  Sonth.    In  the  North  and  West  the  tax  was  collected  at  the  time,  bnt 

the  eoadition  of  affairs  at  the  South  required  it  to  stand  over  until  after 

the  war.     On  the  subject  of  revenue  tbe  Committee  recommend  the  mod* 

ificatioo  of  the  tariff.    They  also  said  that  **  tbe  present  system  of  Infer* 

nal  Revenue  taxation  should  be  simplified  so  that  the  revenue  shall  be 

derived  from  a  few  soarce9,  and  those  such  as  tax  the  follies,  extravagan- 

cies,  and    vices  of  the  people,  rather  than   the   honest  industry  of  the 

country.     They  recommend  that  the  Internal  Revenue  should  be  collected 

from  taxes  upon  tbe  following  articles :  Licenses,  stamps,  tobacco,  liquors 

distilled  apirits,  and  from  land  sales,  fines,  and  forfeitures.*' 

From  these  sources  they  anticipate  a  revenue  of  1327.000,000,  a  sum 
deemed  more  than  sufficient  to  meet  the  expenses  of  the  Government  to 
pay  the  interest  on  the  debt  and  to  provide  a  sinking  fund  of  one  per 
cent,  which,  in  thirty  years,  would  liquidate  the  debt. 

The  Committee  on  the  "  Mississippi  Levees**  favored  the  construction 
of  these  works  on  a  general  plan  to  be  inaugurated  by  the  Federal  Govern- 
ment. It  was  remarked  that  under  the  former  system  of  labor  the  planter 
had  often  scores  or  even  hundreds  of  bands  whom  he  at  once  could  set 
to  work  if  occasion  occurred,  but  that  now  no  such  force  was  at  his  dis- 
posal. 

A  report  was  also  made  in  favor  of  the  improvement  of  tbe  Tennessee 
river,  tbe  removal  of  obstructions  from  the  Mississippi,  and  such  a  regu- 
lation of  bridges  as  will  secure  navigation  from  needless  obstruction,  and 
at  the  same  time  afford  reasonable  facility  for  rail load  and  other  traffic 
across  these  streams* 

The  report  on  continuous  Water  Communication  between  the  Missis- 
sippi River  and  the  seaboard  was  in  the  interest  uf  what  is  called  the 
**  Central  Water  line,**  through  Virginia.  But  that  part  of  the  report 
was  modified  and  altered  and  no  State  interest  was   especially  commend* 


95$  RS0UCTIOK  oj  TAXAnoF«    .  [JToMiifier, 

ed«  The  GonveDtioDy  however,  was  dicidedlj  and  witk  good  reasoo  ia 
fiivor  of  cheap  transportation  bo  as  to  bring  the  pTodocia  of  the  Wot 
into  eafe  competition  wilh  production  elsewhere  in  the  governing  markets 
ef  the  world. 

The  twelfth  subject  in  ihe  order  of  budiness  above  given,  was  trested 
of  by  a  Comraittee  "  on  HHrbors,  Channels  and  Bars  of  the  Atlantic  and 
PaciGc  Coasts."  They  offered  the  k>liowiDg  pteaoable  and  resolutieo* 
ivhich  were  adopted  r 

IThkbkas,  All  the  harbors  and  ban  and  navigable  watcn  of  the  Golf  and  AUtatifr 
eoBst  beloDfir  properly  to  tha  United  fi^tatea,  by  parebase  of  Loniaiaoa  aod  Flori dafraa 
Spaio,  and  by  the  articles  of  aonezatioo  of  Texas  ;  and  hj  treaty  with  the  mother 
coontry;  and  whereas' the  development  of  the  indostry  and  creatioo  of  tndeover 
the  comtriea.  States,  and  Territories  are  depeodeol  upon  theae  harbors  aad  ban ; 
therefore  be  it  re^ol^ed, 

1.  That  it  is  the  doty  of  the  GovemteeDt  of  the  TToited  States  to  protect  and  ia* 
prove  these  bars  and  harbors  to  an  eztenl  iadieated  bj  tbe  present  aad  proipectiTe 
trade  of  the  same. 

2.  That  in  coDsiderstioo  of  the  foreflfolni^  premisps,  and  the  reasoos  ttsagoed  hr  the 
eame  io  the  aeoompaDyiag  report,  thk  CoDTentioQ  doe»  reeonmeiid  So  the  Qorcm^ 
meat's  foeteriog  oare  sod  improvemeDt,  the  bare  and  harbors  at  the  porta  of  Wfl- 
miogtcn  and  Savaooah  ;  Mobile  Bay,  at  Atchafalaya  B^y,  at  the  Sabine  Patm,  at  GaL 
vestoD  Bay,  at  the  month  of  the  Braaoe  Biver,  at  Paf  s  Gayallo  and  ^  Paae  AraMit. 

This  concludes  a  general  review  of  the  action  of  this  Convention,  which 
adjourned  to  meet  next  year  at  Ciacinnati.  It  was  as  we  have  said,  har- 
monious, and  though  it  is  without  power,  yet  its  recommendations,  as  the 
mature  thought  of  men  of  business,  are  worthy  of  careful  study  and  eon- 
sideration.  They  have  at  least  the  merit  of  directness  and  they  are  de- 
signed to  develop  the  resources  and  adrance  the  prosperity  of  the  coontrj* 
The  Convention  brought  men  of  all  parts  of  the  Union  together  and  so 
far  effected  an  exchange  of  ideas  which  cannot  fail  to  be  beneficial.  Go 
some  of  the  subjects  discussed  we  shall  have  oecasion  to  speak  hereafter. 


BEDDCTM  OF  TAIATION. 

A  strong  effort  is  to  be  made  in  the  next  session  of  Conorresa  to  obtaio  a 
remission  of  a  part  of  the  Icternal  Revenue  taxation.  There  ia  no  doubt 
that  a  part  of  the  depression  and  languor  which  afBIcts  the  materia)  in tere&li 
of  the  country  and  impairs  its  productive  power,  is  <lue  to  the  pressure  of 

ill-advised  and  unwisely  laid  taxes.  In  consequence  of  the  vigor  and  fidelity 
with  which  the  Internal  Revenue  Law  has  been  administered  we  Lave  a 
surplus  of  fifty  millions  or  more  in  the  Federal  Treasury.  It  is  the  pressure 
of  this  excess  of  income  on  expenditure  that  has  given  new  impetus  to  tbe 
question  of  remitting  the  taxes,  and  has  made  it  possible  to  give  a  favor- 
able answer  to  the  demand.    In  a  few  weeks  Coo^resa  will  assemble,  aod 


1869]  BXDUCTIOK   OF  TAXATION.  859 

it  is  well  to  look  over  the  whole  case  and  to  lay  down  some  general  prin^ 
ciples  by  which  we  can  guide  ourselves  to  a  right  decision  of  some,  at  least* 
of  the  importaot  points  involved. 

And  in  the  first  place,  taxes  cannot  be  allowed  to  remain  as  they  are* 
The  people  will  not  submit  to  the  pressure  of  heavier  taxation  than  is  need- 
ful to  pay  the  interest  of  the  debt  and  the  expenses  of  an  economical 
administration  of  the  government.  Were  the  material  interests  of  the 
country  vigorous  and  unimpaired,  and  had  not  their  prosperity  been 
deranged  by  the  unprecedented  monetary  spasms  of  the  last  six  monthf^ 
it  might  be  practicable  to  keep  up  the  present  scale  of  taxation,  so  as  to 
secure  n  handsome  annual  surplus  to  be  devoted  to  the  reduction  of  the 
principal  of  the  debt.  Desirable  as  that  policy  might  be,  however,  it  has 
to  be  made  subordinate  for  the  present  to  the  paramount  obl^ation  of  pre* 
serving  the  material  prosperity  of  the  country  and  of  preventing  an 
impoverishment  of  the  national  wealth  and  productive  efficiency.  Wher- 
ever we  turn  it  is  evident  that  legitimate  commerce  and  trade  are  less  pro- 
fitable than  formerly.  Complaints  are  general  that  small  capitalists  feel  it 
almost  impossible  to  carry  on  their  business  and  to  stand  up  against  the 
fierce  competition  which  they  have  to  sustain  with  the  more  ample  capital 
of  others  around  them.  There  is  evidently  a  great  change  in  progress  in 
this  respect.  Formerly  the  small  capitalists  in  this  country  seemed  to 
have  almost  equal  facilities  in  every  department  of  business  with  men  of 
larger  means;  but  the  tide  of  events  now  is  settling  rapidly  in  the  opposite 
direction,  and  there  is  more  and  more  tendency  to  accumulate  capital  iu 
large  masses.  We  have  several  times  pointed  out  in  the  Maqazinb  the 
inevitable  result,  as  one  of  the  effects  of  paper  currency  and  of  the  inflated 
and  unstable  value  which  never  fail  to  be  developed  where  the  specie  standard 
monetary  equilibrum  is  lost.  The  same  law  which  we  have  shown  to  rule 
in  Wall  street  is  growing  every  year  more  pervasive  in  its  force,  and  mora 
general  in  its  sway,  until  it  embraces  almost  all  departments  of  our  indus- 
trial life.  These  tendencies  are  well  worthy  of  more  attention  than  they 
have  received  from  our  financial  statesmen.  It  would  be  easy  to  show  that 
our  inteinal  revenue  taxation  has  contributed  not  a  little  to  increase  the 
disadvantages  of  small  capital  its,  and  to  iacilitate  their  absorption  by  their 
more  opulent  rivals.  This  discussion  is,  however,  foreign  to  our  present 
purpose,  which  is  simply  to  point  out  one  of  the  directions  in  which  our 
tax-reform  machinery  should  operate.  Whatever  taxes  tend  to  clog  our 
internal  industry,  to  fetter  the  productive  powers  of  the  country,  to  give 
large  capitalists  undue  advantages  over  small  capitalists,  to  check  the 
operation  of  our  producers,  and  to  hinder  the  free  circulation  of  our  Indus* 
trial  wealth — all  such  taxes  should  be  forthwith  repealed  as  pernicious. 
This  principle  applies  of  courj-e,  in  the  first  place  and  most  directly,  to  our 


860  UABILITT  OF  RAtLROADd  VOB  TAKIRO  XZTEA.  WAMM.  [NoHmhtT^ 

internal  taxation,  both  that  levied  on  manufacturing  indostrj,  and  esped* 
allj  on  the  product  of  &killcd  labor.  One  of  ihe  ofaxef  pointa  of  tbe  fisca' 
polioj  of  any  nation  nhould  be  to  unfetter  industry,  and  as  far  as  possible 
to  guard  against  all  interference  on  the  part  of  revenue  officials  with  the 
processes  by  which  the  labor  of  its  popalation  imparts  new  values  to  tbs 
rude  materials  of  wealth. 

These  funJam^ntal  principles  of  taxation  are  universally  admitted  is 
theory.  But  the  difficulty  is,  that  in  practice  nothing  is  so  difficult  m 
Iheir  wise  application.  Still  the  attempt  has  to  be  made.  Congress  will 
have  the  agreeable  task  of  taking  off  some  fifty  millions  of  taxe-s  and  what 
we  have  to  do  is  to  decide  which  are  the  most  galling,  the  roost  mischievooit 
the  most  obnoxious  to  just  ol  jection,  the  moat  opposed  to  the  true  pris' 
ciples  of  fiscal  science,  the  most  detrimental  to  the  best  interests  of  the 
country. 

We  do  not  design  in  this  place  to  give  an  exhaustive  statement  of  what 
Congress  ought  to  do  in  revising  the  internal  revenue  tax  list.  We  odd- 
tent  ourselves  with  simply  laying  down  the  paramount  principles  which 
must  be  obeyed  and  pointing  out  the  general  direction  of  the  path  which 
Congress  will  do  well  to  take.  The  details  of  the  lax  reform  will  coma  op 
for  freq*:ent  discussion  hereafter.  For  if  we  mistake  not,  fiscal  questioai 
are  destined  to  assume  a  prominence  before  Congress  greater  Uun  hai 
ever  been  accorded  to  them  before  in  this  country. 

Whatever  difiference  of  opinion  may  be  provoked  with  regard  to  ths 
taxes  to  be  taken  off  and  repealed  about  those  to  be  left  atanding,  there  ii 
we  presume  little  doubt  There  are  the  taxes  on  spirits,  on  tobacco,  oa 
stamps,  and  for  a  time  we  fear  the  income  tax.  With  these  faonestlf 
assessed  and  faithfully  collected,  we  should  probably  be  able  to  repetl 
almost  nil  the  rest  pf  our  internal  taxation  and  thus  relieve  our  domestic 
producers  from  a  weight  which  is  felt  to  be  oppressive  and  may  sooa 
become  almost  intolerable. 


^0^0m0^^^^t^^0^^^0*0m^^0*^*^*^^^*^t^mf*^t^t^t0*0^0 


LliBILITT  OF  BillBOilH  FOI  TIIIRB  EUli  Fill. 

A  decision  has  been  recently  made  by  the  Hon.  Charles  P.  K^rklaod* 
as  referee  in  the  case  of  Philo  Johnson  v«.  The  Hudson  River  Bailroad 
Company,  a  correct  understanding  of  which  is  of  great  importaooe  w 
the  diflferent  railroad  companies  of  the  State.  The  case  will,  of  ooone, 
be  carried  up  from  t^e  referee's  decision  and  passed  upon  fioaily  bj 
the  Court  of  Appeals,  and  may  be  reversed ;  but  yet  it  seems  to  ns  bsrdlj 
probable,  afler  studying  the  opinion,  that  any  change  will  be  msdi 
in  the  judgment  by  the  higher  courts.    In  fact,  the  referee  etated  that 


1869}  iiABnrrr  of  baxlroads  vok  taking  xztra  waum,  Ztl 

he  bad  given  tbe  subject  tbe  most  carefal  consideration,  and  enrnestly 
endeavored  to  find  a  way  of  escape  for  tbe  company  from  tbe  payment  of 
a  sum  80  large  in  amount  and  apparently  so  disproportioned  to  their 
offence,  but  adds  that  be  was  unable  to  discover  that  way. 

It  appears  that  by  tbe  I7tb  section  of  the  charter  of  the  Hudson 
River  Railroad  tbe  company  is  restricted  in  its  charges  for  way 
travel  to  two  and  one-half  cents  per  mile  in  the  v^inter,  and  two 
cents  during  the  residue  of  tbe  year.  By  an  act  passed  February  5, 
1850,  the  word  '* winter''  was  stricken  out  of  this  section,  and  tbe 
words  "December,  January,  February  and  March  "  were  substituted.  By 
chapter  185  of  the  Laws  of  1857  the  defendants  and  all  railroad  com- 
panies were  authorized,  for  any  distance  less  than  one  mile,  to  take  tbe 
legal  fare  for  one  mile.  The  distance  from  Spuyten  Duyvil  to  the  railroad 
station  at  West  Twenty-ninth  street  was  over  ten  miles,  but  less  than  eleven* 
Thus,  by  the  above  acts,  tbe  railroad  company  was  authorized  to  charge 
and  receive  of  the  plaintiff  for  his  fare  between  those  two  points  27^  cents 
in  December,  January,  February  and  March,  and  22  cents  in  the  other 
months  of  the  year.  They  actually  charged  and  received  SO  cents  durtng 
the  four  months  above  mentioned,  and  25  cents  during  other  months.  In 
1857  tbe  Legislature  passed  an  act  (chapter  185)  entitled  ** An  Act  to 
Prevent  Extortion  by  Railroad  Companies,"  which  provides  that**  any 
railroad  company  which  shall  af^k  and  receive  a  gre<«ter  rate  of  fare 
than  is  allowed  by  law  shall  forfeit  $50,  which  sum  may  be  lecovered, 
together  with  such  excess,  by  tbe  party  pajing  the  same."  Between  the 
10th  day  of  May,  1865,  and  the  9Lh  of  May,  1866,  both  inclusive,  the 
plaintiff  was  a  passenger  on  tbe  Hudson  River  Railroad  between  Spuyten 
Duyvil  and  New  York  526  times,  in  going  in  the  morning  from  his  resi* 
dence  and  returning  in  tbe  evening ;  and  the  railroad  asked  and  received 
of  the  plaintiff  each  of  said  times  excessive  fare,  as  above  stated.  On 
these  facts  the  referee  found  that  the  entire  amount  overcharged  to  plain- 
tiff on  tbe  winter  trips  amounted  to  $3  54,  and  on  tbe  summer  trips 
$11  47,  making  in  all  tbe  sum  of  $15  01  overcharged  him  during  the 
year ;  that  for  each  of  these  overcharges  the  defendant  was  liable  in 
a  fine  of  $50,  to  be  paid  the  plaintiff  according  to  tbe  statute ;  and  there- 
fore rendered  a  judgment  against  the  railroad  company  for  $26,315. 

To  this  conclusion  of  the  referee  the  railroad  company  took  exception* 
first,  on  the  ground  that  under  the  General  Railroad  Act  of  1850  they  were 
entitled  to  charge  the  plaintiff  the  fare  they  did  charge,  section  49  of  that 
act  authorizing,  as  they  claime<l,  all  railroad  corporations,  as  well  those 
existing  on  the  2d  day  of  April,  1850,  as  those  afterwatd  formed,  to 
charge  three  cents  per  mile,  and  no  more;  in  other  words,  that  it  fixed 
a  nniform  rate  of  three  cents  for  all.    Necessarily,  if  this  position  is  cor- 


362  uABiurr  oi*  railroads  vor  TAsiHa  xxtea  fabx.  [ilTovoR&er, 

recti  all  existing  railroads  whose  fares  were  less  than  three  cents  eoold 
raise  them  to  that  sum,  and  all  whose  fares  were  more  mast  reduce 
them  accordingly. 

There  were  then  more  than  fifty  railroad  corporations  in  this  Stale  ; 
many  of  the  roads  completed  and  in  operaiion^  and  others  in  process  of 
construction  and  near  completion ;  many  million^  of  capital  had  been  is- 
Tested  in  them,  and  they  extended  over  many  hundreds^  if  not  thooaaaiis, 
of  miles  in  the  State.  Provision  as  to  fare  was  made  in  aU  thar  An- 
ters ;  in  some  the  rate  was  not  limited,  but  in  others,  the  rate  was  fixed, 
as  in  the  Lockport  and  Niagara  Road,  at  4  cents;  Oswego  and  Syraeoie, 
at  5  cents;  Utica  and  Schenectady  at  4  cents ;  Buffalo  and  Niagara  Fslli 
at  4  cents ;  Aubnrn  and  Syracuse  at  4  cents ;  Syracnse  and  Utica  at  4 
cents ;  Troy  and  Schenectady,  6  cents;  (Northern  Ogdensburg  to  Rome's 
Point)  at  4  cents,  etc.  In  fact,  the  time  of  the  passage  of  that  Aet,  the 
Hudson  River  Railroad  Company  was  the  only  Company  in  the  State 
whose  fare  was  limited  to  less  than  3  cents.  It  follows,  therefore,  that 
if,  by  the  Act  of  1860,  the  defendants'  rate  of  fiire  was  raised  to  three 
cents,  then  the  fare  of  all  railroads,  at  that  time  entitled  to  4,  5,  and  6 
cents,  was,  by  the  same  Act,  reduced  to  3  cents.  While  the  power  of  the 
Jjegislature  thus  to  raise  and  to  reduce  cannot  be  disputed,  it  will  not  be 
denied  that  their  intention  to  do  the  latter,  at  least  in  the  case  of  those 
railroads  (and  there  were  many  of  them)  which  were  at  that  moment^  ia 
a  financial  sene-e,  almost  in  their  death  struggles,  must  be  manifested  ii 
a  most  clear,  decisive,  and  unmistakable  manner,  and  not  left  to  ingenioos 
verbal  construction. 

Such  being  the  contemporary  existing  factF,  let  us,  in  the  light  they 
afford,  examine  the  provisions  of  the  Act  itself. 

The  title  of  the  Act  is,  as  stated  above,  "  An  Act  to  aothorize  the 
formation  of  Railroad  Corporations,  and  to  regulate  the  same."  lU 
object  and  intent  was  to  create  new  railroad  companies  and  adopt  s 
general  system  for  them.  Whatever  parts  relate  to  existing  railrosds 
formed  no  part  of  the  primary  object  of  the  Act,  and  such  paru  beii^ 
comparatively  incidental,  must,  on  general  principles  of  constructioD,  be 
carefully  scrutinized,  and  not  extended  beyond  their  plain  and  manifest 
purport.  The  section  relied  on  to  show  that  the  Act,  so  far  as  it  relstei 
to  fare,  applies  to  all  existing  companies,  and  fixes  a  uniform  rate  of  3 
cents,  which  cannot  be  exceeded,  is  the  49th  ;  the  only  part  of  the  Act 
relating  to  fare  is  the  9Lh  subdivision  of  §  28,  which  provides  that ''the 
compensation  for  any  passenger  shall  not  exceed  three  cents  per  mile.* 
The  first  sentence  of  §  49  declares  that  all  existing  railroad  corporatiooi 
*^  shall  possess  all  the  powers  and  privileges  contained  in  the  Act,  sod 
be  subject  to  all  the  duties,  liabililies,  and  provisions,  not  inooosisteot 


1  869]  dt78tl!rS88  CBAK08S   kt  TEX  SOtlK.  Se$, 

With  tlie  provisions  of  their  charter,  contained  in  sections  9,19,  14,  etc.| 
28  (except  sub.  9),  30,  etc.,  etc."  Here  we  see  that  subdivision  9  of  sec- 
tion 28,  the  only  part  of  the  Act  in  any  manner  affecting  the  rate  of  fare/ 
is  expressly  eiecepted  from  the  operation  of  §  49.  How,  then,  can  it 
even  plausibly  be  contended  that  that  subdivision  invests  the  Hudson 
Elver  Road  with  power.to  raise  their  fare,  in  some  cases  20  per  cent,  in 
others  60  per  cent,  and  in  others  45  per  cent? 

The  Company's  defense  is  not  aided  by  the  U.  S.  Bev.  Acts,  author- 
izing railroad  companies  to  add  the  tax  to  tho  fare.  The  amount  of 
tax  authoriz^ed  being  two  and  one-half  per  cent  on  the  gross  receipts 
if  added  to  the  defendants*  charter  fare,  would  not  have  amounted  to  the 
fare  charged  plaintiff.  It  would  have  added  less  than  one  cent  to  each 
sum  paid  by  plaintiff.  It  has  been  held  by  the  New  York  Common 
Pleas  that  this  Act  was  inoperative  on  the  ground  that  it  was  incapable 
of  enforcement,  there  b^ing  no  currency  in  which  the  tax,  if  it  did  not 
amount  to  one  cent,  could  be  paid.  This  difficulty  was  remedied  by  an 
Act  of  Congress  of  July,  1866;  this  act  was  subsequent  to  this  transact 
lion. 

Other  points  were  discussed  on  the  argument  and  in  the  opinion  of 
the  referee,  but  it  is  unnecessary  for  us  to  refer  to  them  here.  The  above 
presents  the  main  question  raised  and  the  mode  of  its  disposal.  The 
decision  is  of  great  interest  to  all  roads  in  the  State,  showings  as  it  does, 
the  liability  to  which  they  subject  themselves  by  each  excessive  charge 
for  fare.  It  is  proper  to  add,  that  so  far  as  *he  Hudson  River  Road  i» 
concerned,  its  excessive  charge  for  fare  was  corrected  abjut  the  time 
this  suit  was  brought,  and  that  a!I  other  claims  for  the  penalty  on  ac« 
count  of  the  illegal  rates  of  that  period  demanded  and  taken  are  now 
barred  bv  the  Statute  of  Limitations. 


BUSINESS  CHANGES  AT  THE  SOUTH— THE  PAST  ANB  FUTURE. 

As  one  result  of  the  political,  social  and  commercial  revolution  ¥vhicb 
has  passed  over  the  Southern  States,  there  i^  a  marked  change  in  the 
method  of  doing  business.  Formerly  the  proprietors  of  large  estate* 
made  purchases  for  the  mnltitudesr  of  hands  whom  they  employed.  The 
planter  was  a  sort  of  small  jobber,  or  large  retail  dealer  who  provided 
for  those  dependent  upon  him  everything  they  needed  in  the  way  of  cloth- 
ing, food,  shoes^  medicines,  &c.,  &c.  He  purdiased  his  supplies  in  large 
quantities,  both  of  domestic  and  imported  goods,  buying  either  of  the 
dealer  in  the  large  cities  or  of  the  merchant  of  his  neighborhood,  who 
kept  in  store  a  large  stock.    With  the  changes  effected  by  the  war  came 


964  BVBXVX88  CBAVOK8  AT  TBS  BOUTS.  [tfoHmkt^ 

a  change  hei^  The  planter  no  longer  had  hundreds  dependent  oabua. 
He  had  to  make  purohases  only  for  himself  and  family.  His  foiBCf 
slaves  became  grouped  in  families,  and  family  self-dependence  begss. 
Each  va^  the  purchaser  of  what  he  needed  or  desired.  He  suppfied  lito 
own  wants.  Forthwith  there  sprang  up  a  host  of  small  shops  In  the  Soeth, 
managed  by  ignorant  and  incompetent  men,  who  soon  fiiiled  and  west 
out  of  business.  The  old  dealers  grew  stronger  from  month  to  month  ssd 
enlarged  thetr  business.  They  drew  around  them  a  new  class  of  caston- 
ers.  The  negroes  on  their  small  holdings  produced  such  crops  as  thaj 
could,  and  with  the  proceeds  purdiased  goods.  It  was  no  longer  dsslisf 
by  wholesale.  The  small  tools  of  the  farm  and  garden,  the  iron  sod 
tin  ware  and  crockery  for  houses,  harness  for  animals,  shoes,  dothisg, 
groceries;  in  fine  all  the  varied  waits  and  needs  of  an  agricultural  oooh 
munity  became  matters  of  individual  and  separate  interest  to  the  whok 
people,  and  a  new  phase  came  over  Southern  trade. 

The  minor  villages,  the  comers  and  cross  roads,  buyers  from  which 
were  heretofore  unknown  in  Northern  markets,  familiar  as  they  wsie 
in  Southern  centres  like  Mobile,  Savannah,  Macon,  Charleston,  A&,  kc^ 
now  deal  directly  with  the  North  ;  and  there  has  also  grown  up  s 
wider  and  more  general  system  of  commercial  traveling  than  has  ever 
before  prevailed  at  the  South.  These  traveleis  go  from  New  York  sod 
Philadelphia,  and  from  the  manufacturing  towns,  and  solidt  direct  trade 
with  those  with  whom  business  was  formerly  done  by  the  interventioo  of 
the  Southern  jobber  or  merchant. 

So  too  the  general  business  of  the  South,  which  was  small  at  the  end 
of  the  war,  has  steadily  increased ,  and  is  assuming  large  dimensions,  while 
it  is  in  a  more  healthy  condition  than  ever  before.  The  mercliaitts  come 
North  tbi«  season  with  cash  or  rtqniring  very  short  credits,  while  the 
vastly  increased  number  of  independent  *' customers'*  in  theSouihera 
States  enhances  the  demand  for  goods  both  in  quantity  and  variety.  At 
the  same  time  the  demand  for  the  finest  class  of  goods  is  increasing.  Tb« 
new  wants  and  methods  of  trade  are  the  direct  outgrowth  of  the  osv 
system  of  labor. 

This  changed  busiufw  at  the  South  requires  for  ila  transactioo  ss 
increased  volume  of  currency.  Business  transactions  are  more  nnmeroits 
and  the  interchange  of  commodities  being  more  active,  a  large  quaslitj 
of  circulation  is  requisite  to  keep  pace  with  the  accelerated  rate  of 
the  community.  There  is  a  change  also  in  the  method  of  moving  the 
crops.  Formerlv,  the  factor  who  took  the  product  of  a  great  plantatiot 
working  one  or  two  hundred  hands,  made  advances  on  this  crop,  TIm 
merchant  also  made  advances.  Now  the  same  quantity  of  cotton  is  raiied 
by  a  score  or  more  of  men,  with  each  of  whom  a  proportionate  credit 


1899]  BUVIVB88   CBAVQEB  AT   THS  SOUTH.  995 

18  creaUd  at  the  factor's  or  the  merchant's.  The  negro  fsomes  in  also  as  a 
proprietor,  and  he  has  his  four  bales  or  his  twenty  bales  to  sell.  The 
community  is  raising  its  own  food  far  more  than  formerly,  hence  there  b 
a  renewed  activity  in  domestio  exchanges,  and  the  cotton  which  formerly 
went  for  the  purchase  of  grain  and  wheat  now  is  a  surplus,  to  be  sold  for 
cash.  In  this  way  too  is  the  condition  of  the  South  improved  and  its 
prosperity  placed  on  broader  and  firmer  foundations. 

The  large  cities  of  the  West  are  making  an  efibrt  to  extend  their  trade 
with  the  South,  and  every  fresh  railroad  built  is  a  new  means  of  securing 
a  foothold  there.  There  is  a  value  end  a  certainty  to  the  Southern  crop 
which  makes  the  promise  of  a  sure  and  stable  business,  and  none  are  keener 
to  discover  new  relations  tuan  the  businet-s  men  who  are  to  take  advan- 
tage of  them.  There  is  an  evident  disposition,  and  one  strongly  developed 
in  the  South,  to  institute  a  system  of  manufactures.  They  have  water 
power,  and  they  propose  to  utilize  it.  They  have  iron  and  coal,  and  they 
can  utilize  them.  They  have  cotton,  why  should  they  not  spin  it?  There 
is  a  climate  and  a  soil  favorable  to  a  most  diversified  industry,  and  there  is 
no  reason,  not  easily  overcome,  why  thej  should  not  have  the  busy  centres 
which  are  so  frequently  met  with  in  other  portions  of  the  Union.  If 
population  i&  needed,  that  will  come  when  enterprise  is  rewarded  and  labor 
is  well  paid.  If  capital  is  needed,  that  will  flow  in  where  it  may  confi- 
dently hope  for  profitable  investment.  Whatever  may  happen,  the  (uture 
can  be  but  prosperous  and  bright.  The  cotton  crop  of  2,493,000  bales 
has  a  valuation  of  1^280,000,000.  To  this  may  be  added  the  value  of  rice 
and  tobacco,  and  sugar  and  corn,  and  the  very  large  sum  that  is  realized 
in  the  production  of  the  minor  crops  which  now  form  an  important  element 
in  Southern  agriculture. 

A  recent  writer  in  a  Mobile  paper  suggests  that  the  cotton  crop  should 
be  kept  at  its  present  dimensions  in  order  that  the  present  high  price  may 
rule.  He  therefore  discourages  emigration  and  any  means  by  wljicb  the 
volume  of  labor  would  be  increased.  The  fallacy  herein  suggested  finds 
no  favor  among  the  thinking  classes  at  the  South,  which  shows  a  disposition 
to  produce  to  its  utmost  possible  limit.  Scarcity  cannot  be  organized, 
nor  should  it  be,  so  long  as  any  man  is  without  clothing  or  food  or 
a  roof  to  shelter  him.  Increased  and  cheapened  pioduction  must  be  the 
rule  in  every  enlightened  community.  It  is  the  only  path  to  general  com- 
fort, happiness  and  wealth. 

The  conclusion  briefly  stated  of  these  remarks  is,  that  the  South  is 
growing  stronger  and  richer  every  year ;  that  it  offers  such  a  market  as 
it  has  never  done  before ;  that  manufactures  are  to  be  instituted  there ; 
that  the  changed  course  of  business  demands  an  increase  of  currency 
and  a  new  method  of  dealing  on  the  part  cf  the  great  commercial  centres, 


366  A  ^OREiO!f  LOAir.  IWovtmiet, 

ftnd  tbftt  in  tbe  tiew  development  of  bo  large  and  populous  and  impo^ 
lant  a  portion  of  the  TTnion,  the  whole  country  will  find  its  prosperitf 
expanded,  quickened  and  assured. 


•^^^m  ^0^^^^^^^0^f^^^^^^^^^'^0^^  "^  m^^^^^^^^^^^ 


A  FOEEUN  LOAN. 


Mr.  0.  S.  IP,  Bowles,  a  prominent  American  banker,  of  Parisi  has 
written  to  tbe  Secretary  of  tbe  Treasury,  with  the  object  of  reTlTiog,  in 
a  somewhat  new  form,  the  defunct  scheme  of  a  foreign  loan«    He  pro- 
poses to  U8  10  issue  a  new  series  of  4  per  cent  non>taxabIe  bon  U^  tbe 
interest  on  which  shall  be  payable  in  London,  I^aria,  or  K^ew  York,  at  die 
option  of  the  holder.    These  bonds,  he  thinks,  can  be  negotiated  at  par,  if, 
before  we  negotiate  them,  we  pay  off  our  matured  Five-Twenties  in  gold 
The  Kational   banks,  he  sa^d,  would  at  once   accept  the  new  bonds,  and 
receive  four  per  cent  instead  of  six  per  cent  as  at  present     In  this  Mr. 
Bowles  is  right.    The  banks  are  creations  of  the  Government^  and  msy  be 
compelled  to  accede  to  this  proposition  by  a  law  passed  for   that  purpose. 
Indeed,  there  are  a  large  number  of  the  friends  of  the  National  baoks 
who  are  of  opinion  that  the  banks  ought  to  receive  no  more  than  four  per 
cent  on  such  bonds  as  they  deposit  as  security  for  their  currency.    One- 
half  of  the  profits  of  the  currency-issuing  privilege  ought,  they  cladm,  to 
be  the  property  of  the  Government.     Our  National  banking  system  is  a 
great  benefit  to  the  country,  and  offers  advantages  to  the  country  far  supe- 
rior to  any  ever  enjoyed  under  the  old   system  of  Slate  banking,  under 
which  many  millions  were  lost  every  year  by  uncurrent  money,  broken 
banks,  and  other  incidents  of  the  exploded  system.    Still  the  benefits  of 
the  Nalional  banks  may  be  purchased  at  too  high  a  price,  and   the  bank?, 
it  is  urged,  should  be  content  to  receive  four  per  cent  interest,  instead  of 
bix  per  cent  on  their  bonds.     This  project  has  ofien  been  proposed,  and 
there  is  nothing  new  in  Mr.  Bowles'  version  of  it.     Nor,  indeed,  has  it 
anythinij  to  do  with  his  proposed  foreign  loan. 

Tbe  principles  on  which  Mr.  Bowles  rests  his  scheme  are  two ;  first, 
that  Europe  is  the  reservoir  of  capital  and  secondly,  that  we  can  draw 
from  that  reservoir,  presenting  our  own  terms  and  fixing  our  own  rate  of 
interest.  He  points  10  the  great  French  loans  to  show  how  abundant 
money  is  in  Europe,  and  he  asks  us  why,  with  the  credit  of  this  great 
country,  we  should  not  get  in  Paris  and  tx>ndon  as  much  money  as  we 
want,  at  a  low  rate  of  interest.  We  could  do  this,  he  says,  and  save 
immensely  in  annual  interest  by  the  doing  of  it.  The  new  Tricurrency 
Consols,  which  he  proposes  to  issue  at  4  per  cent,  would  take  the  place  of 
the  existing  6  per  cent  Five-Twenties,  and  he  supposes  that  the  holders  ct 


1^69]  A  >OR<iG{r  LOUT.  .  867 

the  latter  would  be  glad  to  make  tbe  ezohange.  These  are  the  etsential 
features  of  bis  plan,  which  does  not  much  differ,  as  will  beseen^  from 
other  schemes  for  foreign  loans,  of  which  a  number  are  always  proposed 
at  every  session  of  Coogress^  What  Mr.  Bowles  fails  to  show  is  by  what 
magio  he  will  induce  persons,  who  can  buy  our  6  per  cent  bonds  at  90  or 
lower,  to  give  100  for  bonds  having  only  four  per  cent  interest  It  is 
true,  he  says  that  our  credit  will  receive  an  impulse  if  we  pay  off  the 
principal  of  our  boAds  immediately  in  gold.  But  suppose  this  were  so. 
how  are  we  to  get  the  means  to  pay  off  these  old  Five-Twenties  t  Must 
we  not  get  these  means  by  the  sale  of  the  new  bonds!  And  most  not 
the  new  bonds  be  sold  before  the  old  ones  can  be  redeemed  t  How 
then,  can  the  new  bonds  be  sold  at  the  enhanced  price  f  The  advance 
which  would  be  produced  by  their  payment  might  benefit  a  clique  of 
specuators,  but  it  would  be  at  an  advance  loss  to  oar  National  Treasury 
if  any  such  scheme  should  be  tried  and  the  scheme  it«elf  mvlai  inevitably 
be  abortive.  But  this  is  not  all.  Can  Mr.  Bowles  really  think,  on 
reflection  for  a  moment,  that  our  credit  would  be  permanently  raised  abroad 
if  we  could,  by  some  manoenvering.  adopt  his  sehemef  What  are  the 
facts  f  We  find  our  annual  interest  too  heavy  a  harden  to  be  easily 
borne.  To  reduce  the  burden  by  one-third  we  pay  off  our  whole  debt 
in  gold,  and  pay  it  off  with  borrowed  money.  By  this  payment  with 
borrowed  money  we  are  to  be  enabled  so  to  improva  our  credit  that  we 
can  borrow  at  four  per  cent  when  we  previously  had  to  pay  six  per  cent. 
Mr.  Bowles  proposes  to  raise  1,200  millions  for  us  at  four  per  cent,  that» 
with  its  proceeds,  we  may  pay  off  1,200  millions  of  debt  now  at  six  per 
cent.  Supposing,  we  say,  that  the  substitution  were  to  be  attomptod^  who 
does  not  see  that  the  effect  of  it  would  be  to  lower  our  credit  rather  than 
to  raise  it  f  For  whatever  deranges  and  disturbs  large  masses  of  bonds 
always  tends  to  depress  them  in  the  market,  and  to  unsettle  their  value 
as  investments.  If  Mr.  Bowles  had  been  more  conversant  with  Wall 
street,  and  with  the  ingenious  schemes  for  funding  our  national  debt  which 
have  been  discussed  there  during  the  last  seven  or  eight  ycars^  be  would 
got  be  so  surprised  as  he  seems  to  be  that  his  own  schemes  has  found  so 
little  favor.  As  to  this  writer's  statements  that  Europe  is  the  centre 
and  source  of  capital,  we  are  not  sure  that  we  undentand  his  meaning. 
We  remember,  in  the  early  years  of  the  war,  the  London  Times  used  fre- 
quently to  repeat  this  axiom,  and  argued  from  it  that  as  John  Bull  would 
not  lend  us  a  penny  we  mu^t  stop  fighting.  This  financial  argument,  if 
Mr.  Bowles  wishes  to  repeat  it,  we  must  confute  now,  as  we  did  then,  br 
pointing  to  our  immense  popular  loans,  especially  the  earliest  Five-Twenty 
loan  of  1862,  and  the  last  Seven-Thirty  losn  of  1806.  The  former  of 
these  was  made  when  the  resources  of  this  country  were  undeveloped,  and 


368  ootrpoK  Airn  niLQjatMKBD  boshmt.  [Ximmitr 

lA  confasioD  at  the  outbreak  of  the  war ;  and  the  lalter  wben,  after  «« 
had  passed  through  the  struggle,  and  was  exhausted  with  the  stapeedoat 
straggle  through  which  we  had  passed  we  still  contrived,  in  one  angle 
year,  to  raise  among  ourselrea,  and  without  foreign  help,  no  leas  Am 
1,800  millions  of  dollars.  We  point  to  eHher  or  to  both  of  these  great 
loan  eflfbrts  of  this  conntry,  and  we  challenge  Mr.  Bowles  to  prodnce  ia 
the  financial  history  of  France,  England,  or  of  any  other  nation,  avgiit 
that  will  compare  with  them.  They  are,  and  were,  the  wonder  of  fordfv 
nations,  and  the  glory  and  triumph  of  oar  own.  How,  with  these  rsst 
resources,  we  are  still  compelled  to  pay  so  high  a  rate  of  interest  is  a  qaes- 
tion  to  which  many  answers  have  been  given.  As  to  the  methods  bj 
which  we  are  to  put  matters  on  a  more  satisfactory  footing,  there  is  abe 
great  diversity  of  opinion.  But  assuredly  the  goal  is  not  to  be  reached  n 
the  way  pointed  out  by  Mr.  Bowles. 


CODPOI  AHD  IRBISTEIiSD  BOHL 

pTiom  the  Oommerci*!  A  FtaMiidal  Ck-OBle!«L| 

We  have  heretofore  had  occasion  to  call  attention  to  the  liberal  poli^ 
pursued  by  the  Secretary  of  the  Treasury  in  making  public  all  informa- 
tion in  regard  to  the  Government  finances,  which  can  be  puUiahedwithoot 
detriment  to  the  service.  The  monthly  statements  of  the  public  debt  ure 
given  much  more  in  detail  than  formerly,  and,  in  regard  to  all  the  finair 
dal  operations  of  the  Government,  the  ntmoat  publicity  ia  observed, 
giving  to  all  parties  an  equal  advantage  in  forecasting  the  result  of  socb 
operations,  and  in  shaping  their  business  transactions  aceordiaglj* 
Although  this  course  seems  to  be  the  only  true  and  honorable  one  fori 
public  officer  to  pursue,  when  occupying  the  position  of  fiduciary  ageot 
for  the  whole  people,  it  has  not  always  been  followed,  and,  at  varioos 
periods  tn  former  years,  the  complaints  against  the  secrecy  of  Goremmeot 
operations  have  been  loud  and  strong. 

The  subject  also  seems  to  warrant  these  remarks,  the  more,  from  the 
fact  that  concealment  in  regard  to  the  aflbirs  of  great  corporations  bj 
their  officers  and  directors,  ia  one  of  the  greatest  financial  evils  of  tbe 
time,  and  it  would  be  an  nnfavoraUe  sign,  should  the  example  for  saA 
concealment  be  found  in  the  action  of  the  Government  itself  Hie  fol- 
lowing statement  of  the  respective  amounts  of  coupon  and  r^[istered 
bonds  of  each  issue  of  United  States  loans,  outstanding  on  the  90th 
of  September  last,  has  been  furnished  by  the  Treasury  Department  Ke 
aimilar  statement  has  ever  been  made  before,  to  our  knowledge,  not  even 
in  the  Annual  Report  of  the  Secretary  of  the  Treasury,  and  as  the  pro- 


1869]  THB  A88I8TAKT  TBCABURSRSHI^.  369 

cess  of  convenion  from  coupon  to  registered  bonds  has  been  going 
on  for  a  long  time,  the  respective  amounts  of  ^acU  kind  have  changed 
materialJj  since  they  ^ere  originally  issued.  All  the  coupon  bonds  pur- 
chased by  the  Treasury  are  immediately  convened  into  registered,  and 
$34,100,950  of  coupon  bonds  had  been  thus  converted  up  to  the  SOth 
of  September  last : 

8TATIMIKT     BHOWmO    THE    AMOUNT  OF    OOUPON   AND   BEOISTXBED   BONDS    OUT- 

STANDINe  8BPIXMBEB  30tH,   18G9. 

Aet  Whtn  payable.  Coupon.  Begiatered.  TotaL 

jQn«  14Ui,  1858. Jan.    1st,    1874  14.755,000  5,245,000  90,000,000 

Jane  22d,  1860 Jan.   Itt,   1871  973,000  6,049,000  7,029,000 

Feb.  Stii,  1861 Deo.  Slst,  1880  5,380,000  13,035,000  18,415,000 

March  9d,  1861 July  1st,   1881  945,000         945,000 

July  17th,  1861 Jane  30th,  1881  74,065  300  115,252,300  1^9,317,600 

Feb.  95th,  1862 May  Ist,    1889  385.7  5,030  199.016.550  514,771,600 

Mareh  3d.  1863 Jane  SOth,  1881  94,3Si8,l50  50,671,350  75,000,000 

Maroh3d,1864 Marohl.t,1904  66,617,750  197,949,5'0  194,567,300 

Maroh  3d,  1864 Nor.  lat,   1884            3,689,500  3,884,500 

Jane  30th,  1664 Nor.  1st,  1884  60,833,050  64,798,950  195,561,300 

Maroh  ltd.  ]d6> Nor.  1st,  1885  139,095,900  64,939,050  903,397,950 

March  3d,  1865 Jaly   1st,  18^5  949,598,300  90,400,650  339,993,950 

Maroh  3d,  1865 July   1st,  1887  984,404,930  95,184.000  379,588,950 

March  3d,  1865 July  Ut,  1869  39,609,350  9,850,000  49,539,310 

1,339,440,600       775,496,900    3,107,936,800 


m^0^0^0^t^^^^^^^^0^^t^^^^^^t^^^^^k^^^*^^^^^^^^^ 


THB  ASSISTANT  TRE\SUBEISH[P.J 

The  choice  of  a  successor  in  office  of  General  Butterfield  becomes  a 
matter  of  considerable  public  interest,  from  the  difficulty  experienced  in 
finding  a  suitable  person  to  take  the  position.  There  is  no  actual  scarcity 
of  parties  posessing  the  requisite  qualifications ;  but  there  are  few  who 
while  competent  for  the  duties  are  willing  to  accept  the  responsibilities 
for  the  compensation  allowed.  The  office  is  one  of  great  importance 
The  responsibility  attached  to  it  exceeds  that  of  any  other  under  the 
Qovernment  The  Assistant  Treasurer  is  custodian  of  from  $70,000,000 
to  $100,000,000  of  money — ^a  larger  amount,  probably,  than  is  held  \y 
any  fiscal  of  ficer  in  any  country.  He  is  responsible  not  only  for  the  sate 
keeping  of  these  funds,  but  also  for  the  faithful  and  accurate  execution  «  f 
financial  transactions  aggregating  over  $1,000,000,000  per  annum.  H  <« 
responsibility  extends  not  only  to  his  own  acts,  but  to  the  errors  of  his 
clerks,  their  defalcation,  acceptance  of  spurious  evidences  of  debt,  their 
over  payments,  and  in  short  everything  at  variance  with  a  correct  adminis- 
tration of  his  immense  trusts,  whether  done  directly  by  himself  or 
through  his  agents.  For  the  peiformance  of  such  duties  the  highest 
business  qualifications  are  required.  The  officer  must  have  proved  him- 
self, through  a  long  experience,  to  be  a  man  of  unquestionable  integrity. 
He  ought  to  be  familiar  with  the  banking  system  of  New  York  and  with 
all  the  details  of  practical  finance.  As  the  financial  representative  of  the 
government  at  the  money  centre  of  the  country,  he  is  naturally  called 


370  THB  AsmTAiiT  TBrnMataumBWi  [Nammttty 

upon,  in  monetary  ezigencie»  to  tender  opinions   and  coimttl  to  the 

Secretary  of  the  Treasury,  who  being  at  a  distaaee  firom  the  centie  o( 

business  often  finds  it  impossible  to  form  an  independent  opinion  of  tke 

sitoation  of  affiiirs.    At  timy  the  Secretary  of  the  Treasury  must  eoafide 

to  the  Assistant  Treasurer  an  absolute  discretion  in  matters  of  gnst 
magnitude  and   importance  affecting  the  market  for  money,  gold,  ssd 

securities. 

Not  only  does  the  performance  of  these  duties  call  for  mature  ezperies^ 
in  the  highest  branches  of  practical  finance  and  for  excellent  judgenest 
and  great  prudence,  but  the  public  interest  demands  that  who  enr 
occupies  this  position  should  possess  these  qualifications  in  aa  eminent 
degree. 

Is  it  to  be  expected,  howeTe%  that  one  thos  qualified  would  accept  the 
risks,  the  labor,  the  responsibility,  the  worrying  criticisms  of  ad  a^rtamimm 
writers,  and  the  liability  to  removal  upon  changes  of  administratioQ,  for  s 
consideration  of  $6,000  per  annum !  A  person  competent  for  sooh  sa 
office  can  readily  command,  in  other  positions,  a  salary  of  $15,000  to 
$20,000 ;  and  what  reason  has  the  Government,  or  we  should  rather  ssj 
our  law-makers,  to  expect  that  it  can  secure  the  requisite  ability  sad 
character  for  onr-third  of  that  amount  t  If  the  officer  accepts  a  com- 
jjensation  below  what  his  abilities  would  command  elsewhere^  there  is 
reason  for  expecting  that  his  official  position  may  be  nsed^in  outside 
operations,  fi  r  making  up  the  deficiency.  In  foot,  the  inadequacy  of  the 
salary  acts  directly  as  an  incentive  to  speculation,' on  the  part  of  the 
holder  of  the  office,  based  upon  the  knowlege  and  fiwiliiies  growing  out  of 
Government  transactions.  While,  therefore,  it  may  not  be  impossible  to 
find  a  pure  officer  for  the  present  salary,  yet  the  lowness  of  the  pay  tends 
to  make  the  incumbents  impure;  and  before  we  can  reasonably  expect  ths 
Assistant  Treasurer  to  maintain  a  f^poMess  reputation,  we  should  com- 
pensate him  in  proportion  to  the  value  of  his  services  and  the  reasooaUd 
demands  of  bis  social  position. 

But  whii-  j  iKtice  and  prudenoe  would  demand  that  Congress  shosLI 
grant  a  more  liberal  remuneration  for  this  office,  it  may  be  well  for  Goo- 
gross,  at  the  same  time,  to  consider  whether  the  period  has  not  anrired  for 
making  some  change  in  the  manner  of  receiving,  paying  out,  and  holdiog 
the  government  funds.  The  accumulation  of  $100,000,000  of  money  ia 
the  vaults  of  the  Sub-Treasury,  held  aloot  from  the  lousiness  of  Uie 
country,  and  alternately  distributed  and  again  ab  sorbed  in  large  amoanU 
is  productive  of  serious  derange  ments  to  the  money  market  acd  to  lbs 
general  business  of  the  country*  While  it  may  be  necessary  for  the  Get- 
emment,  in  the  present  condition  of  its  finances,  to  have  large  balanoei 
at  its  disposal,  yet  it  is  equally  important  that  its  funds  should  be  so  bsU 


1869]  jk  oou>  Fuor  Fom  ooTTOV.  .871 

aa  to  be  available  tor  facilitating  the  exohangos  of  the  country  and  for 
encouraging  its  enterprise,  now  repressed  by  numerous  unnatural 
agencies,  the  legacy  of  war  finance.  The  working  of  tha  public  fiDAncee 
'instead  of  being  conducted  outside  of  the  general  6nancial  operations  of 
the  country,  and  acting  arbitrarily,  and  often  injuriously,  upon  ezokaogea 
ibonld  be  so  regulated  as  Co  form  a  part  of  the  ^eat  whole,  the  one 
running  into  and  naturally  cooperating  with  the  other.  We  do  not,  at 
present,  propose  to  consider  the  details  for  such  an  arrangement ;  but  the 
principle  is  so  obviously  natural  and  sound,  that  it  appears  to  us  but  to 
need  suggestion  in  order  to  cotumand  approval.  No  firm,  or  corporation* 
or  city,  or  State,  however  extensive  its  capital  and  operations,  finds  it 
necessary  or  expedient  to  isolate  itself  from  the  banking  arrangements  o' 
the  community,  and  to  erect  an  agency  wholly  independent  for  the 
transaction  of  its  business ;  nor  is  it  easy  to  conceive  of  adequate  reasons 
for  the  Government  taking  an  exceptional  course.  This  was  a  matter  of 
liitle  moment  when  our  disbursements  amounted  to  only  a  few  millions  of 
dollars  in  a  year ;  but  now,  when  the  aggregate  receipts  and  disburse- 
ments have  increased  so  largely,  the  system  becomes  a  source  of  embar- 
rassment and  of  actual  injury  to  every  interest,  involving,  as  it  does,  the 
alternate  letting  out  and  looking  up  of  such  large  sums,  and  the  perpetual 
idleness  of  the  immense  balance  it  holds,  of  capital  adapted  for  circulation 
through  the  channels  ol  commerce  and  industry.  We  think,  therefore 
that  tiie  whole  system  demands  the  early  attention  of  Congress. 


«tfV««VW^^*'**^*«^*M^*'^'*^ 


A  GOLD  PEIGE  FOR  COTTON. 

The  desirableness  of  a  return  to  a  stable  basis  of  values  is  admitted  by 
every  one  and  many  are  the  methods  proposed  by  which  that  point  may 
be  reached.  There  is  at  present  a  want  of  fixedness  and  an  absence  of 
certainty  in  business  transactions,  which  all  deplore  and  which  must  con- 
tinue while  the  price  of  gold  ox  more  correctly  speaking  the  value  of 
the  greenback  !s  daily  and  almost  hourly  changing.  For  with  this  large 
and  irredeemable  paper  currency,  thus  changing  in  its  purchasing  power 
day  by  day,  prices  vary,  the  spirit  of  speculation  is  kept  active,  and 
an  unhealthy  and  unsteady  tone  prevails  in  all  financial  and  commercial 
circles. 

In  no  branch  of  buriness  is  this  continued  fiuctuaMon  more  unfavorably  felt 
than  in  the  cotton  trade.  There  is  now  no  lurge  margin  as  formerly  in 
prices  between  different  countries.  The  telegraph  has  brought  this  market 
and  Liverpool  and  all  other  cotton  markets  so  closely  together  that  a 
commission  is  about  ail  the  merchant  can  secure  in  any  transaction,  and 


872  A    GOLD  PRIOX  70B  OOROV.  [JfoMHlW, 

a  slight  tarn  in  gold  can  more  than  wipe  out  this,  leaving  a  loa  ai  iIm 
net  result  of  the  operation.  In  fact  so  great  has  the  risk  beoome  thaitlN 
careful  shipper  must  buy  his  gold  first  and  then  his  cotton.  Pnrcbaies 
also,  for  future  delivery  (a  legitimate  business),  are  rendered,  from  Urn 
same  cause,  almost. as  uncerttin  as  a  ticket  in  a  lottery. 

These  facts  have  lon^  led  the  Northern  cotton  merchant,  espedally 
those  engaged  in  a  foreign  business,  to  desire  freedom  from  our  present 
unstable  currency.  To  await  till  we  return  to  a  specie  bans,  may  require 
the  continuance  for  years  of  the  existing  difficulties ;  whereas  a  very 
simple  and  immediate  remedy,  fo  far  as  this  branch  of  bnainees  is  con- 
cerned, may  be  found  in  selling  cotton  hereafter  for  gold ;  that  is,  having 
no  currency  quotation,  but  simply  a  quotation  in  gold*  As  is  well 
known,  this  has  always  been  done  in  Galveston,  and  the  South  generally 
is  in  a  condition  to  make  the  change.  At  the  recent  Commercia]  Goa- 
vention  in  Louisville  there  was  presented  a  communication  from  Mr.  B- 
W.  Lithram,  of  Washington,  in  which  were  embodied  the  views  of  a 
meeting  of  Southern  gentlemen,  who,  in  July,  passed  resolutions  in  favor 
of  the  organization  of  banks  at  the  South,  under  State  loans  and  oo  s 
coin  basis.  The  meeting  resolved  that  our  present  paper  currency  was 
an  undesirable  siedium  of  exchange ;  that  the  South  had  lees  than  its 
proportion  of  national  bank  currency ;  that  planters  sell  their  cottoo, 
hemp,  tobaixso  and  sugar  for  coin  only ;  and  that  they  make  their  lahor 
contracts  payable  only  in  specie.  The  subject  referred  to  in  the  conclod* 
ing  portions  of  this  resolution  hits  been  widely  discussed  at  the  South,  and 
is  looked  upon  with  favor  by  leading  and  influential  men,  aa  well  as  by 
the  journals  of  that  section,  as  a  means  of  reconstructing  our  iotemsl 
commerce  upon  a  sound  and  safe  basi.,  and  avoiding  the  floctuations  that 
peril  and  render  uncertain  so  much  of  the  business  of  the  country. 

The  cotton  crop,  at  present  prices,  is  worth  say  $300,000,000,  and  of 
this  value  nearly  two-thirds  is  taken  for  export,  snd  goes  abroad  as  the 
medium  of  settling  our  exchanges.  Entering  thus  with  controUing  infia- 
ence  into  our  foreign  commerce,  how  essential  this  change  becomes. 
With  it  there  would  be  uniformity  in  price  at  New  Orleans, at  Molnle,  at 
Charleston,  at  New  York,  and  at  Liverpool.  Purchasers  would  know 
what  they  were  buying,  and  producers  would  know  what  tkey  wers 
selling.  On  the  other  hand,  the  present  selling  currency  price,  as  stated 
above,  must  always  be  first  adjusted  to  the  gold  value  at  the  moment 
of  purchase,  and  even  then,  before  the  transaction  is  closed,  it  is  clooded, 
and  its  results  are,  perhaps,  materially  changed  by  the  varying  humon 
of  the  Gold  Room.  With  every  hour  the  figure  fluctuates;  a  rise  or 
fall  of  several  per  cent  may  occur  in  a  day,  or  a  week«  Grold  rings  ars 
ojganized,  whose  operations  utterly  paralize  foreign  commeiee,and  a  wids* 


MM]  X  ooiD  PBios  FOB  oontnr.  .  Zit 

Bpread  noeertaiDiy  and  donbt  become  Uie  rule  where  order,  harmoByi 
stability  and  fixed no^s  should  govern. 

The  Booth,  ako,  h  now  out  of  debt,  and  for  this  reason  in  an  excellent 
condition  to  inaugurate  this  scheme  and  put  it  into  effective  practice. 
The  old  debts  of  the  South  have  either  been  paid,  or  where  tliey  could  not 
be  thus  liqnidated,  they  have  been  wiped  out  by  the  Bankraptcy  Act 
There  is  not,  therefore,  any  debtor  olass  to  suffer  by  a  return  to  specie 
payments.  At  present  the  merchants  from  that  section  are  the  favorite 
buyers  in  our  market.  They  usually  eome  with  cash,  and  have  had  behind 
tliem  the  immense  value  of  the  cotton  crop.  Formerly  the  South  depended 
largely,  indeed  almost  entirely,  on  this  great  staple,  and  the  money  for  it 
was  spent  before  the  crop  was  raised.  The  changed  condition,  result- 
ing trom  the  war,  has  introduced  a  changed  method  of  agriculture. 
Induatry  is  more  diversified,  and  attention  is  paid  to  the  raising  of  a 
variety  of  crops.  The  food  for  which  they  once  looked  so  largely  to  the 
Borlhwest  is  now  produced  at  home  in  greater  quantities  than  before. 
They  buy  fewer  products  for  consumntion.  They  have  a  large  surplus 
of  cotton  from  the  proceeds  of  which  they  are  accumulating  wealth. 

But  it  may  be  said  that  the  step  we  have  indicated  is  a  step  towards 
the  resumption  of  specie  payments.  It  is  certainly  a  movement  in  that 
direction,  and  for  that  reason  a  special  1>enefit  to  the  north.  Its  influ- 
ence would  be  kit  in  the  north  and  west,  and  would  tend  to  modify  and 
render  more  certain  basrnees  transactions  in  all  parts  of  the  country. 
Besides,  this  step  is  rendered  the  more  necessary  in  view  of  the  possible 
action  of  the  Supreme  CSourt  of  the  United  States  in  declaring  tte  Legal 
Tender  Act  unconstitutional.  There  have  been  intimations  that  the  opin- 
ion  of  this  court  would  be  adverse  to  the  legality  of  the  act,  and  there  are 
very  many  who  believe  that  i\\e  delay  in  rendering  a  decision  is  due  to 
the  apprehension  of  the  Court  of  the  effect  of  a  sudden  announcement  of 
the  conclusion  reached  by  them.  Be  this  as  it  may,  however,  much  of 
this  apprehenfiion  would  soon  be  found  to  be  groundless  if  a  good  start 
was  already  made  in  doing  an  important  branch  of  business  upon  a 
specie  basis.  There  would  be  at  least  one  solid  rock  of  real  credit  and 
value  upon  which  commerce  could  be  re-erected,  and  which  would  defy 
whatever  tempest  and  disaster  might  from  any  cause  result.  But  the 
apprehension  and  dread  of  those  who  predict  immediate  disaster  upon 
a  declaration  of  the  unconstitutionality  of  the  Legal  Tender  Act,  is 
according  to  our  view,  by  no  means  certain  of  being  realised.  No 
decision  of  this  Court  could  have  a  more  damaging  effect  upon  the  gen^ 
ral  trade  of  the  country  than  the  late  speculations  in  gold  which  pros- 
trated the  business  of  the  nation  as  effectually  as  if  it  had  been  stricken 
by  a  tornado  or  upheaved  by  an  earthquake.    Prices  declined,  the  import 


ST4  TRMSPOSffAflOH  WT  BBIABtTVm«  [if 

trade  ceaaed^  tbe  export  basiness  was  ebecked|  confidence  departed,  and 
the  healthful  eomnercial  tfanfiactions  of  Ihe  whole  country  were  saddenlj 
and  unexpectedfy  arrested.  Surii  tesnlts  as  these  we  have  seen  leeendj. 
The  '^flurrj'*  of  a  week  eolmtnated  k  a  shock  which  was  at  once  eoa- 
posed  by  stupefying  all  Ihe  interests  that  had  been  perturbed  by  k.  If  thcce 
had  been  a  price  in  eurreney  before  for  cotton,  it  ceased  to  have  a  Tslee 
jUien^  and  no  OQatheoDatical  ealculatioQ  could  soke  the  inUieale  mysteries 
of  the  uarkety  and  bring  order  oqt  of  the  eonlbsion  that  pieTaiJed» 
Under  our  present  currency  ajatem,  we  are  continually  liable,  and  each 
succeeding  year  more  liable  to  a  recurrenee  of  these  gokl  comets,  aod  it 
would  appear  that  no  decision,  however  sweeping  in  its  efiects^  could  have 
a  more  danuigiag  influence  upon  the  biBiness  interests  of  the  oonntrj. 
But  more  than  this,  we  are  led  to  believe  that  the  government  will  tiks 
such  steps  that  its  issues  of  currency  will  be  redeemable  in  gold  on  the 
announcement  of  such  a  decision,  and  tbe  immediate  efiect  may  tbas  be 
of  far  less  mosaent  than  any  imagine.  We  skall  discusa  this  point  more 
fully  on  a  future  occasion. 

In  view  of  what  has  been  said  would  it  aot  be  possible  and  akc  the 
part  of  wisdom  for  this  city  to  take  the  lead  in  tbk  extremely  knportsDt 
matter.  The  cotton  is  at  the  South  to  be  sure,  but  the  great  body  of  the 
capital  which  makes  the  exchanges  and  transacts  the  basiocas  are  here^ 
Let  cotton  factors  explode  these  currency  rates  at  once,  quoting  cotton  ia 
a  language  intelligible  to  all  tbe  world  and  not  requiring  an  eUborsts 
arithmetical  investigation  to  render  it  comprehensible.  This  staple  ofien 
the  best  point  of  departure  because,  as  we  have  already  stated,  of  its  great 
valae,  and  because  so  much  of  it  enters  into  export,  and  is  employed  ia 
adjusting  the  balances  of  the  foreign  trade.  There  is  a  significance  aboot 
gold  dealings  in  cotton  which  do  not  belong  to  grain  or  tobacco.  They 
are  comparatively  modern  elements  In  our  commerce  with  tbe  rest  of  the 
world,  but  they  would  not  long  renst  the  impulse  of  the  new  tide  on  which 
b'lsiness  would  be  borne  along.  They  would  be  lifted  from  their  onrrsDcy 
moorings  and  wailed  into  an  open  sea  where  there  was  depth,  a  safe  aochor* 
age  and  ample  sea  room.  If  there  ever  was  a  time  when  stability  inbosi* 
ness  should  be  sought  for  it  is  at  the  present  moment.  We  have  learned 
many  lessons  by  experience,  and  we  grow  more  assured  every  day  that 
the  real  prosperity  of  thecountry  depends  upon  a  return  to  specie  pay- 
ments, and  upon  the  subordination  of  bur  vast  commercial  interests  te 
the  established  principles  of  financial  action. 


^^^<^»rffc^M"  m^^^^^^»^^^*^^m^^'^^m*t^»0  M 


TXANSPIRTATIO.N  IF  UBABSTUFFS. 
.  In  the  course  of  an  article  in  September,  on  the  subject  of  Breadstuft, 
thd  probable  aupply,  and  the  demand  from  Europe,  we  briefly  alloded 


\ 


1869]  TRAKSPORTATIOir   OT  BRSADSTUTFS.  8^5 

to  the  fact  that  the  matter  of  transportation  might  become  of  unusual 
importance  in  its  relation  to  the  course  of  prices.  Year  by  year  the 
centre  of  the  great  wheat-growing  districts  of  the  United  States  has  been 
moving  westward,  until,  from  being  in  the  Genesee  Valley,  as  it  was 
thirty-five  years  ago,  or  in  Ohio  or  Michigan,  as  it  was  twenty  years  ago, 
it  is  now  on  the  banks  of  the  Mississippi,  or  to  the  westward  of  that 
great  river.  And  as  the  centre  of  the  wheat  growing  region  has*  moved 
westward,  the  quantity  which  it  is  necessary  to  bring  to  the  seaboard 
every  year  has  increased.  The  same  remark  applies,  in  a  less  degree,  to 
other  cereals — corn,  oats,  rye,  barley,  &o. ;  and  the  subject  of  the  means 
provided  and  the  rates  paid  for  the  transportation  of  the  vast  quantities 
of  breadstufis  now  seeking  the  seaboard  (torn  far  western  fields,  is  one 
whose  importance  is  constantly  asserting  itself. 

The  serious  breaks  in  the  Erie  Canal,  which  were  produced  by  the 
severe  doods  of  October,  and  against  which  no  foresight  oould  have 
guarded,  suspended  navigation  about  two  weeks,  and  was  attended  by 
various  circumstances  which  gave  it  unusual  importance,  and  6nally  forces 
the  whole  subject  of  the  transportation  of  breadstuffs  eastward  upon  pub- 
lic attention.  The  crop  of  spring  wheat  was  fully  twenty  days  late  this 
gp.a8on,  and  this  break  occurred  just  at  the  time  when  it  began  to  move, 
-delaying  the  first  considerable  arrivals  of  spring  wheat  at  this  market 
to  about  the  first  of  November,  instead  of  the  first  of  October,  as  usual ; 
giving  us,  in  fact  but  about  one  month's  free  deliveries  by  canal,  instead 
of  two,  as  usual.  Should  the  weather  prove  exceptionably  favorable, 
we  may  have  yet  ^ve  weeks  of  canal  navigation,  during  which  we  have 
to  accumulate  such  a  stock  of  grain  in  store  as  will,  with  the  aid  of  the 
receipts  by  rail,  enable  a  steady  export  movement  to  be  maintained,  in 
addition  to  the  local  demand,  without  giving  room  for  any  important 
advance  in  prices.  But  if  the  canal  should  be  suddenly  closed  by  frost 
in  the  last  week  in  November,  it  would  be  a  serious  circumstance. 

The  period  during  which  the  Erie  Canal  remains  closed  is  usually  about 
twenty  weeks — sometimes  as  many  as  twenty-two,  and  often  not  more 
than  eighteen.  The  largest  accumulation  of  grain  in  store  at  this  market, 
at  the  close  of  navigation,  has  been  about  fourteen  million  bushels. 
The  actual  wants  of  this  market  fo;  consumption  are  about  85,000 
bushels  per  day ;  namely,  15,000  bushels  wheat,  35,000  bushels  com, 
25,000  bushels  oats — the  balance  rye,  barley,  <bc.  Thus  fourteen  million 
bushels  in  store  will  nearly  meet  the  wants  of  consumption  duiing  the 
winter  months.  But  it  often  happens  that  the  ^quantity  in  store  at 
the  close  of  navigation  is  unequally  divided,  there  being  a  surplus  of  one 
sort  and  a  deficiency  in  another.  The  railroads  or  speculation  must 
restore  the  equilibrium. 


d?6  TBAV8POiiTAnoH  ov  BMMAunvwwB.  (Jfowiikr 


It  is  bat  two  years  since  the  railroads  began  to  deliver  any 
quantities  of  grain  at  this  market.  In  the  fall  of  1867,  we  think,  we 
found  at  the  dose  of  navigation  but  about  1,500,000  bushels  of  eorn  is 
store — a  quantity  so  notoriously  inadequate  to  our  wants,  even  when  sap* 
plies  from  the  South  were  added  to  i(,  that  a  great  speculation  sod  s 
large  advance  in  prices  resulted  therefrom.  These  high  prices  indaead 
the  Erie  railroad  to  make  the  needful  preparations  to  bring  forward  oon 
in  cars,  and  very  soon  we  had  a  supply  of  from  twenty  to  thirty  thoo- 
sand  bushels  per  day.  The  speculation  broke  down,  and  every  legiti- 
mate  interest  was  vastly  benefited.  This  marked  a  new  era  in  the  trios- 
portation  of  grain  from  the  West  We  have  since  received  large  quanti- 
ties of  wheat  and  oats  by  the  »ame  means.  For  the  eight  weeks  endiiy 
last  Friday,  the  deliveries  of  grain  at  this  market  by  rail  amounted  to  the 
handsome  aggregate  of  3,412,600  bushels,  over  70,000  bushels  per  boo- 
ness  day  and  nearly  equal  to  the  home  wants  of  the  market  The  Erie 
road  has  now  many  competitors  in  the  business.  The  New  York 
Central,  iu  connection  with  the  Hudson  River,  Railroad,  and  the  Peu- 
sylvania  and  New  Jersey  Roads,  are  all  engaged  in  bringing  gnia  to 
this  market 

During  the  winter  season,  these  roads  cannot  bring  to  ua  so  modi 
grain  as  now.  They  will  then  be  encumbered  with  hirge  quantities  of 
perishable  products,  which  usually  seek  the  market  in  cold  weather. 
Dressed  hogs,  game,  and  dressed  poultry — these  justly  claim  and  recdve 
the  preference.  But  if  the  deliveries  of  grain  by  rail  at  this  market  be 
reduced  to  60,000  bushels  per  day,  there  would  not,  even  then,  be  danger 
of  any  deficiency  in  supplies.  It  is  very  probable  that  an  aocumnlatioo 
of  stocks  in  December  will  approximate  eight  million  bushels.  The 
export  demand  is  confined  entirely  to  wheat ;  and  of  this,  unless  the 
shipmentB  shall  be  much  larger  than  for  the  past  few  weeks,  a  stock  of 
four  million  bushels  will  be  ample. 

Besides,  there  are  routes  to  the  seaboard  from  the  West  other  than 
those  leading  to  New  York.  Portland  is  an  important  point,  and  nearly 
monopolizes  the  export  of  oats ;  Philadelphia  and  Baltimore  can  get  for- 
ward liberal  quantities  of  grain  by  rail.  We  noticed  the  other  day  the 
charter  of  a  vessel  to  load  wheat  at  Philadelphia  for  a  British  port  Thii 
is  an  unusual  circumstance.  In  former  years,  that  city,  as  well  as  Balti- 
more, drew  on  us  largely  for  wheat.  There  remains  to  be  considered 
the  Mississippi  route,  via  New  Orleans.  It  is  a  long  and  expensive  one, 
it  is  true ;  but  during  the  active  export  of  cotton,  ships  at  New  Orleaos 
are  glad  to  get  some  grain  for  ballast,  and  will  accept  low  rates.  Thii 
may  in  a  measure  overcome  other  obstacles  to  a  movement  of  giaio  io 
that  direction. 


1869]  OOKBUHPTIOff   OV  OOTTOR  ZV  SUROPS.  d7t 

We  ooDclade,  therefore,  that  although  rates  for  canrjiog  grain  from 
the  growing  districts  to  the  seaboard  are  likely  to  be  high  for  some  months 
to  come,  there  is  no  danger  of  such  a  scarcity  of  supplies  at  this  market 
as  to  promote  successful  speculation,  or  seriously  interfere  with  the 
regular  course  of  shipments  to  Europe,  unless  something  unforeseen 
■hould  occur;  and  we  infer  that  the  lateness  of  the  crop  of  spring  wheat, 
and  the  break  in  the  Erie  Canal,  are  not  likely  to  be  attended  with  the 
important  effect  upon  prices  which  many  seem  to  expect.  Still,  if  they 
shall  attract  attention  to  the  growing  importance  of  increased  facilities 
for  transporting  the  products  of  the  West  to  the  seaboard  at  all  seasons 
of  the  J  ear,  an  important  service  will  have  been  performed. 


CONSUMPTIOJr  OF  COTTOJV  Iff  EUAOPE. 

H.  Ott-Trumpler,  of  Zurich,  issued  about  the  first  of  October  his  interesting 
annual  Circular  resp!ecting  the  cotton  consumption  of  Europe  the  past  season,  or 
which  we  have  received  a  copy  by  the  last  steamer.  We  can  make  room  this 
week  only  for  the  following  tables  showing  the  oonsnmpUon.  The  figures  repre- 
sent thousands  of  bales. 

Aznaxi*     lo*     Bra-  Snn- 

can.      dlaa.    zU.   Egypt  drr.   Total 

Stock  in  the  porU  October  1, 1868 113      260      103       19       19  513 

Imp^ru  dnriog  Uie  leaaon 974    l.tiBS     581      187      140  3.447 

Total 1,087    1,885      633      306      159  3,960 

Exports  to  the  Continent 153       GUS       78       10       17  864 

934    l,3r.9      545      196      143  y,(>76 

Total  in  the  ports  Sept  30,  1869 57       346       52       81       13  489 

'■■^■^^                      avMH^*                 ^^^BMM                 ^^^^^                  ^^la^a  w^^^^a^M 

CtfMimiptlon 877       013     493      175     139  S,5Sf 

COXTINEIIT. 

Stock,  Oct  1,  1868,  at  Harre,  Marseilles,  Bordeao, 

Nantes,  Antwerp,  Amsterdam,  Rotterdam,  Bremen, 

Hamburg,  Trieste,  and  Genoa 31            43         13          9         99  101 

Imports  direct  Irom  countries  of  production  at  above 

pamedports 388          333       131         51       345  1,038 

Export  from  England  to  the  Continent  dednction  being 

made  for  li,(K0O  bales,  exported  irom  Continent  to 

England 153          634         71           9         14  871 

Total 5«»3          900       305         63       381  9,010 

Slook,  Sept  30,  ISOJ  at  above  ports. 17            50         14           1         13  94 

OoaumptioB ^. 545          850       191         61       S60  l,9Ii 

coxsuifrnoNOF  bubofil 

Ameri'    Ind*                             Sun- 
can.       Ian.     Brazil.  Egypt,  dry.  Total. 

1M8-A9 1,493      1,763       664        3:M>       398  4,S03 

1867-68 1,735      1.5S9       708       351       388  4,604 

ia%-67 1.548      1,594       450       315       343  4,147 

1865-66 1,S37      1,633       423       355       387  3,935 

1864.^5 336      1.487       334       371       634  3,055 

1863^'4 343      1,161       308       335       660  3.598 

1869-63 133      1,4G4       160       337       163  3,146 

186L-63 563     1,090       183       164         55  1,993 

\ , , 

1860411 3,443         674                    371  4,388 

1859-60 .  3,407        593                  373  4.174 


• 

878  COTTON  ]fAiru9A<m7R«EB'  AasooiAiiov.         [iTosmlir, 


tf— nCBLIBR  OOXtVMFmnU*' 

Ameri*  In-  Bra-  Son- 
OMi.  dlaa.  sU.  Efnrptdrr.TotaL 

186M9 877    913    493    175  IM    2*567 

186768 1.197    799    533    188  111    8.8» 

1866-67 1016    815    998    160  135    $.414 

1865-66 646    878    S59    186  150    2i3t9 

1864-65 187    850    SO:}    V85  346    1,873 

1861-64 178    680    134    819  414    1,565 

1868-63 ^ 99    9(>5    111    163  5«    1,398 

1861-62 304    675    101    122  15    1.217 

1860-61 2,170    249            193  2,612 

1BS9-60 8,136    907            218  2,560 


Ameii' 

.  In. 

Bm-          Bra- 

543 

850    191     161   Se»   l,»S 

saa 

T21 

ns    61  t77  xm 

533 

777 

158    55  sn  i;m 

301 

75S 

164     69   237  I'M 

49 

637 

12L      89   S«   l,1tt 

64 

543 

Tl    IM   246   US 

34 

559 

49     64    106     6H 

238 

415 
495 

91      42     49     711 

1,273 

n       I'm 

1,219 

385 

55       ua 

aoL 

.....M 

..  3S 

tTl  1861 m 



B    1880 951 

1889 48911867 91111865 30411883 ..SIT 

1868 513|l866 945  1 1864 490|l863. 

The  foUowiDg  figures  show  the  imports  and  oonsnmptioii  in  Etnope  ineick 
of  the  last  eight  seasons : 

BtoekBlii« Importt »  Btoektat 

EoxoM     Ameri-   Other  alol  wof«^ 


Oct  1.  can.    ooontriM,  Tote!,  mmod.  ToteL  EacTd.  Ceift 

1861-69 : 1,019  £4  1,364  %*n         388  1,9SI3  U17  711 

1869-63 368  181  1.947  2.436         250  S.I46  1,3«  ^4 

1863-64 850  815  21716  8,181         563  8;5eB  1,565  1,«B 

1864-65 663  930  9,608  3,415         347  3,05S  i.SR  l,ia 

1865-66 347  1,565  3,166  5,078  1,143  SJOB  9J19  l,fii 

1886-67 1,143  1,495  9^1  5,239  1,088  4,147  9.414  1,18 

1867-68 1,093  1,572  9,f54  9^918         614  4,604  3,8a  1.19 


614       1,368       3,110       5,068         883       4JSn       9,987      1,911 

The  receipts  at  the  ports  of  Bpain,  Sweden  and  Rusda,  from  America  sad 
other  countries,  and  the  oonsomptlon  in  Italy  of  native  cotton,  are  not  indaded 
la  these  tables  of  oonsnmptlon. 


m0^^^0^^*0^^^tm^m^i0^0m0m0m0^0^0^^^0^r^0^/^0^fm0m 


AVJIUAL  REPORT  OF  TIE  COTTOll  MilTUFACTURERS'  ASSOCIATIOil,  PRSSEITDI 

OCTOBER  19,  1869. 


▲t]  the  inniifil  ni«etioi;,  held  in  New  York.  Jane  80, 1869,  the  Stntitt'cal  Report 
retams  from  794  cotton  mllle,  haying  oyer  99  uer  cent  of  all  the  spinning  machinerj  In  tkt 
country.  The  detaf  le  and  reeuUs  oi  tbe  s  atUtics  thai  <  b'aloed  ap.  ear  In  chv  pnbliehtd  pio- 
oeediosraof  thitmeering  We  h'-re  r>  peat  the  st  te  ent  ihon  nu  e  of  the  home  c^n  wp* 
tioa  or  cotton,  NO'thpind  Snath,  for  th«  yrar  1867-8,  and  haye,forthe  greater  ficiltt7-<tf 
compar  eoo,  dUDffed  tho  <ia%ntiiie«  from  pounds  to  bales  o  466  pounds  ebai,thttbeSagtti 
actual  ayerage*  as  is  shown  by  the  table  of  weights  appended  to  this  report, 

Oonsumption  of  cotton,  year  ending  Slst  August,  1968 : 

Baleeofcottm 
northern  Mills.  Spladl*s*   astfdforapinnlas. 

MiUs  xuturned 688  8^4  9«874  8B^0eT 

MtUs  estimated 48  60,000  e,8« 

786  8.601,874  861,840 
Southern  Mills. 

Mills  letarned ICl  147,888  7fi,9» 

Milsestlmatai 7  18,000  4,480 

lOd  960^888  61,395 

Uied  In  m*ll8,  otherwiie  than  for  spinning, 

QaanMtr  returned .....•«•— ••••••  84,168 

Qaantit?  eatimated ,^^ 800i8 

Totals... 814  6,788»587 

Dedact  for  exceptional  cosea  In  which  the  quantity  reported  was  the  coDBuml^ 
capacity,  and  not  the  aciuat  conanmption • 81.181 

Actual  home  consumptioo.  North  and  South,  1807-4 

Thia  conanmption  represents  the  quantity  talc'n  by  the  home  mills  from  the  crop  of  ISI^^** 
•Koept  the  r  mall  diiferenoe  in  the  stocks  held  by  the  miils  attheb<«ittalngaat«Bdof.fB; 
year.  •  •  e  •  *  #*•• 

The  Committee  desiring  to  obtain  the  mill  statlstles  fo^  1866^.  Ibr  comparison  whh  Ihesser 
the  preyious  year,  and  to  Cuilltate  the  correct  prepaimtlon  of  the  amiBalcrupi 


1869] 


OQTTOK  IIAKUYAOTURBBS'   ASSOC  UTIOIT. 


879 


directed  tlie  iMiif.  about  the  1st  of  Angnst,  of  a  dicalar  a<'drei8ed  to  the  managers  of  a 
the  cotton  ImlUs  in  the  conntrjr,  iocloeluK  a  copy,  for  correcilon,  of  the  retnrn  for  the  yrar 
endlY^ff  Aoimst  81, 188S,  and  asking  fbr  the  Btatistlcs  of  each  mill,  for  the  year  ending  Ao^nat 
31,  IS  9.  •  •■*♦  •  m  •'  •       ^    m 

0y  September  lat  the  Secretary  had  recelvpd  retnms  from  77  per  cent  of  the  mills  r«>orted 
last  y€*r,  and  by  Octobe*'  1-t  from  flO  per  cent  of  all  these,  and  from  a  few  mills  which  did  not 
then  report,  but  were  Indaded  in  tlie  edttmi^tes  then  given.  The  resolta  are  shown  in  ihe  fol- 
lowing tsble : 

■mopsis  ov  hbW  niTtJBm  to  ootobbb  1,  ISOOl 

Averse  per  OtherwiM 
State.  ills.  Spindles .  Tar 


lUine 19 

New  Hampehire 43 

Vermont 11 

Massachnsetts 148 

Rhode  Inland U» 

Oon*^  ect  icat.  ......* 78 

New  York 48 

NewJerscy 17 

Penneylranla ....  00 

Delaware 7 

MariUnd 8 

Ohio 8 

Indiana 1 

Illinois 3 

MlaeouTi 8 

North 1w3 

Virginia. T 

North  Carolina IB 

South  Carolina 6 

Qeorgia 80 

Alabama 8 

MlBsia  ippl 3 

T«x  a 8 

Arkansas 1 

Teone^aeee... 7 

Kentiifdiy....*« 8 


Sonth. 


490,4X4 

745,980 

8<,168 

S,8M,0» 

906,681 

514.549 

488,911 

18H,009 

371,946 

85,109 

88,808 

18.8*0 

10,800 

460 

18,064 

5.909,110 

97,148 

X0,743 

S9,<84 

78,566 

S7.1^ 

&83S 

1,716 

5:6 

9,800 

4,500 


Cotton  spuL  Spindle.       nsed. 


85,090.0«7 

80,894,541 

1,071.867 

184,896,138 

86,598.689 

95,559  591 

18,791,161 

6,828,718 

18,736,056 

1,986,886 

4,994,837 

1,M^,603 

1,447,M)8 

it7.863 

1,793,644 

806,751.961 

8,.!68,168 

8,4^6,741 

8,583,596 

9,9J9.D47 

9,460,188 

943,000 

90^,800 

06,H68 

785,071 

786,795 


51. iW 

es.81 

48.73 

69  54 

40.89 

49.67 

41.71 

89.16 

68.86 

56.60 

147.76 

194.34 

1S4.0T 

60.61 

148.68 

51  18 

88.8U 

190.18 

138.54 

las.os 

(^9.94 

73.68 

131.97 

184.81 

75. 

175.99 


680,481 
11SJ»4 
168,674 
875,000 
967,810 
749,500 
• .  •  • . . 
407,98» 


100,000 

•  •  •  •  • 

136,503 


8,088,808 

•  «  •  •  «  • 

•  «  •  •   •  •  • 
«  •  •  •  •  •  • 


78   197,758   13X 

mBOkmuhknon. 

Noith 513    5,990,14U       38^ 

Soath 76       197,759       19^ 


93,778,718        115.03 


806,781,964 
33,773,718 


51.18 
116.03 


3,088,868 


Total ^ 9:8    6,196,999       S8        839.535,683 


63.17       8.038,868 


The  mills  embraced  in  last  yearns  report  that  have  not  now  reported  wore  generAlly  of 
smnll  capacity,  haTing  in  the  aggregate  only  676,689  spindles. 

The  returns  from  581  mills  last  year  and  this  year,  compare  as  follows : 

Lbs 

606  Northern  mills,  which  for  1867-8  reported  5,827,947  fpindles,  coosomiog 831,669,311 

Report  for  1368-9,  5,977,684  spindles,  consuming 805,484,085 

Showinsca  falling  oirof7.H6  per  cent,  or 36.076,386 

7^  Scat  hem  m*lf»,  which  for  1867-8  reported  195,031  spindles,  consuming 87,890,108 

Aeport  for  1868-9, 105.659  spindles,  CO usnmlng 33,6'i8,718 

Showing  a  fillirg  off  of  17.30  per  cent,  or «..     4,711,880 

Toicethrr.  5S1  mi  IN.  which  in  1837-S  reported  6,033.868  spindles,  eonsnming....  858,949,419 
Btfpjrt  for  1806-9,6,173.313  spindles,  consamlog 398,163,808 

Showing  a  failing  off  of  8.67  per  cent,  or 80,786,616 

T  heee  681  mills  reported  for  1867-^  as  cotton  used  otherwise  than  for  spiDntng. . .     4,705,600 
And  report  for  1868-9 ^761,b76 

Showing  a  fUllKgcff  of  41. 80  percent,  or 1,948,134 

It  is  fiir  to  assume  that  a  ratio  afforded  by  returns  from  93  p  r  cent  of  the  spindles  report 
ing  last  year,  ann  8»  percent  of  all  in  the  United  States,  taken  as  they  come,  will  be  a  J  act 
and  true  ratio  for  the  whole  maoof  ictariog  p-^wer  in  the  comparlron  of  the  last  and  tne 
preceding  ye-ir^s  work.    U  is  th^refbre  applied  to  all  tbe  miUs  reported  su'i  m  reported  in 
the  following  statement  of  the  home  consamption  in  tbe  mil's,  Nerth  and  South,  fjr  the  year 


186&<0,  recioned,  as  last  year,  in  bales  of  466  pounds  escb. 

Hills. 

North 730 

South 108 

Usad  in  mills,  but  not  for  spinning 

ToUls 814 

Against 844 

Showing  a  reduction  in  Northern  mills,  for  spinnlug 6S,448balea 

»*  Southern     '•  »♦       .       18,C00     " 

CottoaothervfiM  a»^ • 83,464 


Spindles. 

6,670.846 

360,000 

6,980,846 
6,763,557 


Bales  ufed 

f  .r  Spinning. 

767,613 

64,998 

82,741 

864,351  in  2868^. 
065.666  in  iS^ 


»t 


■»  !    I>. 


Total 101.413 


»• 


830  COTTOH  MAVtTFAOnTRVSS'  ASfiOCIATIOlT.  [ifoVVMkr, 

Onr  report  In  June,  after  remtrklni;  npon  Iho  eon'lde^Ve  cODtraetioii  in  tlu  prodaotoBd 
heayy  goods  after  Jananry.  ea'd,  ''The  ag^rpgate  fur  the  whole  year  la  beliendtofaelMi 
than  for  the  year  prcoedinff,  bnr  this  can  be  determined  only  by  renewed  retaint  fhn  tte 
milla  to  be  nuide  at  the  chwe  of  the  aeaenn,  aist  Angast"  V^e  baye  tboee  retana.  >ii4  thir 
confirm  the  f  mpreraion  which  was  common  amons  minnfactnrfrr  th  t  th**  home  ree^omptira 
has  beea  leas  thin  in  the  preceding  year.  On  the  other  hand  the  atock  of  cottoo  held  ia  mSQi 
Attgntt  SI,  lb60,  was  >ar^r  than  that  held  Angnat  81.  1^98,  Th*  excees  thia  year  ma  call- 
mated  by  the  Cohuboial  and  Fdiaxoial  Chuoviclx  of  New  York  to  be  8C,0i0  balea.  Tbat 
•atimate  was  too  amall,  as  ahown  by  later  Ai^Telopmenta,  aa  to  atocka  held,  and  by  theliadtcd 
qoantitiea  taken  by  ap^nnera  eince  September  lat^— abon*.  10,000  bales  per  week. 

He  actoal  oonaunptlon  haTiog  been 864,154  Ma 

'  the  increase  of  atock  in  the  miila fiO,000  ** 


The  whole  quantity  taken  by  the  mannfactorenwaa 914,84  * 

For  many  yea^a  the  BMppinff  <m4  Commsreiat  LUt  of  New  York,  waa  Jaatly  the  ataadaid 
Mithority  for  annoal  ttate'nenta  of  the  cotton  en  pa  of  the  United  Statea.  Down  to  l^es  its 
atatemenu  were  well  prepared  from  data,  obtiined  at  the  eeveral  ve  porta  of  tbe  Soath 
whence  i^early  tbe  whne  crop  waa  atilpp^  1 1  either  Northern  or  Forei  n  porta,  and  tae  n«a  ts 
(excladlt  g  an  eatim  ted  conenrnptfon  aonth  of  the  Po  omac)  were  approximately  correct,  ii2 
a  y  dnab  e  contribution  to  tbe  indn 'trial  »tati  ttca  of  the  r oantry.  Yonr  commit' ee  ItA  oon- 
pel  ed  to  show  that  the  8Mm\M  LM  ia  no  lons^T  to  b**  reg^ed  aa  authority,  and  tn  enoai 
the  errnra  which  h«ye  rendered  ita  cotton  i>tatl8iic8  worse  than  ueeleas  since  the  ^losa  vftlN 
war.  They  do  It  relnctantiy.  •  •  e  •  Ml  theanthotitieaagree  aobst^ntialyiotba 
atatl-tica  of  exports  foreign,  and  of  the  atocka  at  tha  beginning  and  end  of  the  year.  Tbcr 
also  agee  in  the  statistics  of  Sootkero  porta.  It  Is  the  cotton  moyed  by  Inland  lontei  «bn 
dyes  occasion  fir  confa«ion  and  opportun  ty  for  miaBtat«meat.  The  attempt  to  anportioB  tti 
Quantitl  s  10  mill  and  ma  ket,  reanertiyely,  Vy  ^atima'ion  only,  was  in  a  matter  of  tbla  eo»fle> 
quence,  a  fault.  Peraiatenc^t  in  rach  a  coarse,  after  its  errors  have  been  r  ointed  ont,  beernai 
worse  itian  a  fault.  Any  error  thua  produced  in  tbe  amount  of  **  re€Hpi§  **  of  cotton  required 
a  oorr-  vpo  di^g  error  in  the  "  home  co  sumpUon  **  to  balance  it.  The  item  was  madee<a»tic. 
oompreeaibK  or  expansible,  to  suit  the  exig  nciea  of  the  case,  and  oorresp  md  to  tbe  feqaired 
mnonnt  of  '*  r»ce1pu  at  the  porta.**    But  in  this  iiem  of  h  me  conaumption  of  cotton,  belk 

filanter-  and  manufkcturers  had  a  strong  1tttere«t,  prompting  a  desire  to  know  the  «mth  aboH 
t.    In  aaccrtaintng  the  consumption  and  its  proportiona.  North  and  Boiith,  the  Ar  oditla 
has  establiehed  ft  statistical  deUclor,   The  seyerai  qoantites:  1,  of  cotton  r^t'iintdftokoBa 
nnt-a  or  d^atrr  yed ;  9.  of*cotton  exported :  3,  of  s  ocks  in  the  port^  at  the  beginning  sad  cad 
of  the  year;  are  a1'  the  f  lements  rpqoirid  for  an  f  xact  statement  of  the  cotton  crop. 
The  eta  einent  of  the  Shipping  List  waa  as  follows : 

ToUl  Crop  of  the  United  States    bales  f,MlBBT 

Add  fe'tocks  on  hand,  let  Septcnkber,  1888 "         S7,W 

Makes  a  supply  of ...    "      8,»7^JB 

Deduct  ttirnfr-  m, 

ffxport  to  f^irelen  porta 1.444,d68 

8tork«  on  ha<  d,  let  Sepc-mber,  1869 11,1410 

Barn- in  transit SOS 

Manufactured  in  Virginia jn,OCO      hCiJX^ 

Tskpu  for  home  nae  North  of  the  Pitomac  and  Ohio  Riyers m.K4 

»»  u  "    South     "  "  "      andbnrnt, IW.«« 

Tot-*]  consnmed  and  burnt  in  the  Ucited  Statea,  (Includiaf  burnt  at  the  ports,) 

18fi8-» Win 

It  will  be  obsenred  th^t  here,  a«  in  years  p  st,  the  Shipping  X'«<  exclude  fVom  **tkt 
eroD  **  al*  the  cotton  which  it  estimaUt  to  haye  been  retai  ed  in  the  South,  except  20,000  btlet 

nMd  In  Yirtrinla.  and  903  b  Oes  burnt.    The  quant.ty  excluded  is ba>a      Ytt^ 

which,  addld  to  lh9  "  Total  Crop"  as  a|)oy« •'      1,»0^ 

would  show  an  aggregate  production  of **      S,4SS,itt 

The  wool  consumed  in  the  Western  States,  is  not  excluded  from  any  annual  atatemeatortha 
c'in  of  wool  in  the  United  States. 

The  cotton  goods  c^nenmed  in  Oreat  FrlUin  are  not  excluded  from  the  Gommerelal  or  Bosn 
of  Trade  Statement  ot  British  mann&ctures.  There  Is  no  reason  wh  r  the  Southern  coneampddB 
of  cotton  fhonld  be  excluded  from  the  cot*  on  crop  oi  the  United  States. 

The  S'ippUg  TJit  fto^cd  the  quantities  reeprctiyely  taken  for  home  nee  **  north  cftke 
Potomac  and  Ohio  Riyera,**  and  eouth  of  the  Potomac  and  Ohio  Biycra,  burnt,  dc,  ia  i|U 
annual  crop  statementa  for  four  years,  ha  follows : 


1«6V«. 
I86fr-T. 
1867-8. 
1868-0. 


North. 

South. 

Tola). 

601,085 

197.640 

^'2 

678,867 

9$0,«R9 

8M,0;9 

799,817 

168,848 

9I8110 

891,991 

178,908 

995,19: 

During  the  last  ye^r  ample  proof  has  been  giyen  that  the  Statea  eon  h  of  the  PotcRnac  BiTer 
neyer  ccmeumed.  for  splnniair  purposea,  in  milla  and  tamilien,  (except  during  the  late  war) 
no  much  as  86,300  bales  of  cotton  in  a  year.  The  nae  of  cotten  for  mattreaeea  and  other  vpbei- 
■tery  neariy  or  quite  ceaeed  with  the  adyant  of  var  prioca.  The  cotton  bunt  or  ockanriae 


1869] 


OOTTOir   SAKUfACTaRXRs'  ASSOCIATION.  S8I 


destroyed,  aftor  belnfl:  teled,  has  not  this  year  exceeded  4,600  bslev.  StAtlstfcs  a*e  wono 
tnan  nseless  if  not  accurate.  The  qnestl  n  at  issue  Is  not  merely  whether  the  Southern  con" 
sumption  of  C'»it3n,  the  past  year,  was  M).nciO  bales  or  173,00  >  hales,  th  ngh  that  is  an  Impor^ 
toat  one;  rmt  the  question  is,  whether  the  public  Is  nut  m'sled  by  receiving  »s  standard 
authority  a  com  Ha  lou  rad'cally  def.;ctlyd.  In  the  form  used  by  the  Shipping  LUt^  the  sub< 
traction  of  173.908  bales  from  the  production  of  the  country,  instead  of  bu,OuO  or  8&/K0  bait r 
left  the  **crop  ^'  amal  er  by  the  t  zcess  sub-tracted. 

Thus,  If  the  trnu  Southern  consum^ition  only  had  been  deducte't,  the  crop  of  1868-9  would 
have  been  about  *i,8fiU,U00  bal  s  assuming  that  the  other  ctata  and  the  m  tbod  of  the  Snipping 
IJL$t  were  correct.  By  similar  pi ocest^  the  en  p  or  IStTT-d  would  have  been  f  hown  to  be  over 
:r,600,000  balei>;  of  im^l  over  2,1  0,000  ba  es :  of  18'  CMS  over  3,30  ,000 bales,  that  is,  if  the  several 
amounts  aporop  ia  ed  in  excess  for  Souihern  usa  were  transferred  to  tb*^  sev.  rul  approprlS' 
tions  for  Noitheru  use,  and  thence  counted  ia  the  "cnm*'  (as  the  Shipping  Zi«c  always 
reckoned  tho  Nor  h  rn  consumption  la  the  crop),t^en  the  several  crops  wonld  huve  beezr 
iacreasa  ),  as  staged.  For  instance,  ths  Shipping  LitVi  annual  statement  for  180ti-7,  stited 
th  J  crop  thus : 


Total  crop  of  the  ITn' ted  States  ..,..    I,tt61,l 

atoGic  on  i^and,  let  September,  1886 SdJ.69S 

JIakeaasDpdIyrf S,?85,680 

Dcdact—Bs ports  to  foreien  porta 1,559,315 

8  ock  on  band.  September  1, 1887 80,^^5 

Burnt  and  manufkctured  in  Virginia. SS,H7d 

1,668,818 

TAkeo  for  home  use  north  ol  Virginia 578,867 

"  *'       '*    in  Virginia  aud  eh  ewhere  throughout  the  U.S S80,073 

Totkl  oonaumedinthe  United  States,  indudlDg  burnt,  Ac 864,08 

9 

The  etatf'ment  of  the  Son* hern  consumption  at  S80,679  bales  was  so  obviously  wr>ng  that 
it  was  severely  assai  ed  at  the  time,  sni  in  its  next  year*s  annual  statement  the  Slipping 
lAtt  chunfirei  the  flguren  in  its  tib  e,  nod  brought  forward  the  home  consumption  of  186t»-7, 
thus:  Korth  of  Virgioia,  687,867:  eisewhere,  156,672;  haviog  taken  1)4,000  b^les  from  tbe 
South  aud  added  it  to  the  North,  but  without  any  note  or  orher  reference  to  ibid  remarkable 
cnange.  Tois  increase  of  the  Noi  them  consumption,  it  will  be  seen,  neceseltaed  a  like 
Increase  In  tne  erop  receipts,  because  the  exnorts  and  stocks  were  fixtd  fictji,  and  the  en  p 
receipts  and  consumption  enough  to  balance  them  were  the  only  elastic  or  convertible  quan« 
tiUes. 

The  statement  amended  by  the  Shipping  U$ft  own  figures  must  have  stood  thus : 

Total  crop  of  the  XJaited  States,  1836-7 bales.  9,0*5,888 

Stock  on  hand  SepL  1,  1866 Si^,608 

Make^  a  supply  of. 8,859,689 

I>ednct— Exporto  to  foieiffu  ports 1,558,345 

Stocks  in  port4  Sept.  1,  1867 80.^6 

Burnt  and  manufacmred  in  Virginia S8,678 

1,668,818 

Taken  for  hom9  use,  north  of  Virginia 697,861 

Taken  for  home  use  in  Vi 'glnia  and  elsewhere 1&6,678 

Total  consumed  in  the  United  States  (Including  burnt,  Ac.) 854,089 

If  the  crop  had  been  so  ttated,  what  would  have  become  of  the  co-  tracts,  ^c,  that  were 
settled  in  accordanje  with  the  Shipping  Liafs  statement,  mak  nj(  the  crop  lees  than  two  mil- 
hon  baleaf 

Bo  much  to  i'lnstrate  the  untrustwortbv  character  of  the  system  that  has  been  forowed. 
Returning  to  the  details  of  the  lust  cop,  tn  committee  present  the  following  as  a  true  stated 
ment  oi  the  entire  production  of  cotton  for  1808-8  in  the  United  Stati-s  : 

Heme  uses— In  mil's  North,  spun ba'es.  767.619 

Iq  mills  South,  spon M,99S 

In  mills  North  and  South,  not  spun 81,744 

lo  mills  North  and  South,  added  to  stock 60,000 

la  home  spinntnic,  jfcc.  South 7,500 

Burnt  oi  otoerwise  destroyed  after  paddng* 4,5J!K) 

^     996.9St 

Sxporta  foreign,  aa  per  New  York  tables 1,448,000 

•'  *'        to  and  tarough  Canada I8.000 

1,466.000 

Dlspdaedof  through  tho  year.. »  ,.... , 3,399,264 

Deduct— Difference  In  stock  in^orts : 

Stock  1st  September,  l;t68 88180 

Stock  1st  September,  1869 i^'jj^j 

— ^ —  98,781 

TMal  production,  188S-9 Hm^ 


*82  BTATB  OIBT  OF  AMKAHBAB.  [JPofmifr, 

The  committee,  after  a  careital  eximfnatiOB  ofeveiy  point  ivrolted,  fe^lenttieeoKideaM 
tn  the  cH!^t'tntialoorrectnf »  of  tbe  Btatement  of  the  crop  oflfiBS^nhlch  tliey  hare  t^^^Jimit 


above.  Tet  the^  would  not  wholly  rely  upon  any  one  meUiod  or  form  o 

of  lkct^  \t  another  ia  pract  Cdble.  ^  e  •  •  •  •  m         V 

Aain  the  rUtUtica  of  cotti.n,  qnantltlea  are  nanaOy  atated  In  bales,  the  eommtttae  bsit 
deeoed  it  quite  important  tbac  t&e  trne  average  weii^ta  of  bales  of  IToited  Mates  ontn 
ahon  d  be  iiccarately  ascertained,  and  they  have  iDBtltatedinqairies  to  this  end. 

Iq  calllns;  for  retorne  from  the  mil  b  of  their  actoal  con»ompt^on  the  pact  jmt,  It  «« 
reqaested  that  the  answers  ihonld  be  in  Iwth  ponods  and  bales.  The  rtqnest  was  aenenlt 
GompHtd  wiih;  seventy  percent  (in  eonsamlng  capsdty)  of  the  Northern  mills rttoitedli 
the  I  im  de»ired,  and.  with  a  ¥eiy  few  ezoepUona,  in  Buch  detail  as  to  <'Mf<catf  thai  thdrbooki 
had  been  carefhlly  consnlted. 

From  these  letnras  it  sppeared  that  of  U8  mlllp,  oonsmninc  flU,60ft.i<T  poaBds.vUcl 
was  60  per  cent  of  the  whole  conromption,  or  fii5,441  b«les,  esch  bale  sTemeed  Ik.M  poBsda 
•  •  •  •  •  e  e  •#  "n 

The  fo'^owlnff  aTenges  for  tho  seTsral  localities  stated  hare  been  dedsced  from  a  cnt 
number  of  ioTolcea  from  each.  Applying  these  sTeragea  to  the  qnantltleB  nndaced  la  ths 
tame  locailtiea,  we  have  the  following  leaolt  linr  1868-i : 


Kew  Orleans  and  Texas ^ Ma.(n  Mi  €mM»M 

MobUe SaO.TiS  4*1  114,801^01 

BtTSimah aVT.SU  4«  SM,M^m 

Charieston......... 198,MS  MO  «,SM,W 

HemphlB  andtlclDity 8MM6  4U  m.«,SIO 

Nash¥llle,  Ac.  (Inland)... 181,000  Mn  mUB^W 

Viigiiuasnd  North  Carolina 66.«U  OS  ftjsnjsn 

MTMQi  400.4  5      MMMMI 

The  arerag )  net  weight  of  all  the  American  (United  Btatea)  cotton  reeeiTsd  at  Lhranmri  thi 
laai  three  year  was  444  poonds  per  bale.  As  arose  Wrights  are  always  given  in  oar  stvtbtl.t. 
the  tMT^  (iqoal  to  43<  per  cent  ol  ihe  grofs  weight*;  most  be  addM  to  this  « 
the  retnlt  will  be  an  average  of  485  poands.  A  fhrther  tret  haa  been  made  by  the  < 
By  the  f  oarte^y  of  mann&ctarers  and  merchanta  of  Boston  dealing  In  eottoB, 
frcm  them  the  actvd  invoice  weights  of  nesrly  180^003  balsa,  tahen  wltbo«t  s< 
crop  of  :868-9,  aa  followB: 

Bales. 

From  merchants • ..»..   80,801 

From  manofiistnrerB mi684 

Total > 17«4»  81,4»»8IS8         dOJI 

Of  this  the  greater  part  was  from  Memphis,  Xobile,  Savannah  and  New  Oili— 8,  iiid  n* 
average  iB  above  the  svenge  of  the  whole  crop. 
Aetiie  resnlt  of  these  several  Inqulriea.  we  have  the  following: 

Average  weight  of  ba  es—AB  per  letums  o>  Northm  mils lbs. 48BS-]t 

Invoices  from  Sonthern  msricets 48ijf 

Liverpool  weighta, with  tare  reetoied  ^ 4SS 

liOBton  weighta €W 

And  thefe  result  in  ths  common  average  used  by  the  committee,  at  400  ponnda  per  bale  fer  tke 
Wh'iiecr.p. 

Rcspecfhlly  sdbBltScd. 


^■^■^  ^^»-*  -  ■  —-  --  ~ ->^p^^.^^-^>^^  -^^.-^j^j-^ 


THE  STATfi  DEBT  OF  AUA1I8A8, 


The  State  of  ArkuDsas  in  1827  and  1888  issued  bonds  to  the  amoimt  of  ooe  BiRiso 
seven  hundred  and  soveoty-two  tbouaand  doUaiVi  to  establish  a  ba^iag  tDsliUiMO 
10  that  Bute. 

The  failnre  of  the  banks  to  which  the  bnods  were  issqed«  and  vhabb  wen 
eipected  to  pay  tho  interest  upon  them  soinii^anniially,  left  these  obQgatiooi  wufifo^ 
vided  for,  and  aince  1841  the  State  has  been  in  default  in  regard  to  them. 

Tlie  LfgUlatore  of  Arkaneas  at  its  last  session  passed  an  actautboriaing  the  imos  of 
new  bopds  in  payment  of  the  principal  and  iot( rest  upon  the  whole  debt.  Tbs  sev 
bonds  amount,  with  back  interest,  to  the  sum  of  four  milliO''  fbnr  bnodred  and  tweot^ 
five  tbcuf  and  dollars;  they  have  been  issued,  and  are  now  ready  to  be  ezehangwiit 
the  American  Ezchanffe  ffational  Bank  in  thia  city ;  and  prevision  has  been  nuuls  bf 
law  for  raiBing  a  aufficient  amount  by  taxation  to  pay  the  intereat  apoo  these  ei« 
bonds  as  it  becomes  due. 

This  act  of  the  State  of  Arkansas  is  honorable  to  its  people»  ani  they  wiD  fad  it 
advantageous  to  themselves  in  the  growing  prosperity  and  improved  aedit  of  tts 
State. 


ISG9}  PUBLIC  DIBT  OT  THE  DHITBD  STATES.  383 

TSB  DEBT  STITEMENT  FOI  OCTOBES. 
Tha  folio iring  is  the  olfidal  atstement  of  tbe  public  debt,  as    appears 
from  tbe  books  and  Treasurer's  returns  at  the  com  of  basiness  on  iha 
Iftst  day  of  October,  1869  ; 

tDebi  kearlBC  ia(er««(  U  0*U. 


fr.  5-'«» ».«««  from  Mar.  1.18 

G'<ari8Ei Altec  JBH  a).i»it. 


i;i-30'i »  j8iiti(coiiijairi,iiie* _^^::_^: 

AnHEiteoCdebtbcirlnRtntenBtlDcolD.... SSJM.SM^  DO  »««.?; 

^^oaiMU  dais,  not  presGDled  fg[  psimeiit S.'^i 

ToUl  iBtcrett KJjKi 

*.  C«rU*<««,.On  ilcm«nil  (InMi-Ml  wlloiileil) SI'J.SWI.liro  M   Sl^ 


s;KiTuuindeiDJ<>tiitsitDc«DbtrM,UM .'..'!I!iI!IIlI!C^!lUI  Mtoiil  UD 

fi'n.fccu.  natu-MntnndAFrUndNir-lSa a.Jsa  M 

>:  :M0->.3re(n...UuiiredAu|[iul»iiD?Oclub«rl,l9U il.mm 

N>,l*3Tesn...MalDiBdrn)mJiB.1taABrll1.liic 9Cli.S5i  00 

4/sftsW™Vi-5«llfEdo""ob«i^i's».."^."/.!!^;::::::;::^  m.mas 

7»-iri,3Te>n...UUured  Augaul  u,  ]K;.uul  June  U 

isdJoljl^lBM W7.W0W 

AcEfMotdebtmirtilcbUil.hucsuedtlDceiiistnr %i^.'met 

■Mbt  ftaarlBx  n*  Inlcreat, 


noKUta.                    Chun 
I  mB  Ff b.  IS  IIW Urn 


.  tJi'i'wi!*"^ 


:BTBUSixa  LrrnlMTiKCaiR— Bonditt  «p.  p'nt 

Total dBbibeMliirtHiiTOii In  totn..., U jOT^pSOom (K.o: 

'"Vt^Xl^MltS'lYV'ni...?'"...!^^^^       •u'^tSoo 

TotildebCbcultigliiUrHt  In  UwfalnonrT t<1.M>.CC0  DO    1.71 

irroHWHicBlHT.BASCiiiusiiaiKATniiTT ifeai>»H       6- 

'"i)cm«Bd»Drtlft[al  tender  not-». 1^.11  WS  W 


ToUl debt  beulsf  DO  Interest.... S(:i.ea).I»t I! 

Toul SSjiswr.!;-  " 


384  j^KBT   or  SOBTB  OAROUMA.  [ifoffanW, 

AMOVTrr  Tjr  TBM  Tbsabvbt— 

Co*» 1^91211 « 

tJurr*  ncy 7Jci34it 

SlDkingltiDd  in  United  ^tat»B  coin  tni 'tt  bonds,  and  acc>  aed  Interest tfaeraen        ]S>NJL«t  a 

other  united  States  coin  Interest  bonds  purchased,  and  accmed  interest 

thereon ^...        mjnfitk9 

Total tlSMB^tt 

Debt,  less  anionnt  In  the  Treasury , |lJ6i.tjn»j| 

Debt,  less  amount  in  the  Treasury  on  the  1st  ultimo 2,4MgauC(a 

Decrease  of  debt  dnrlns  the  past  month, • ." ■tjKSMd 

Decrease  of  debt  since  Alarcn  1,  ibM |li;S^B 

B«ii4s  Issued  to  tl&e  Padflc  Railroad  Companloo,  latcrest  payable  la 

liAivftal  Honey* 

Interest  Interest       Interest  Balw^af 

rh&rAetfiroflsane.                                  Amount      accmed  paid  by      repaid  by  tartet  pft^d 

cnaracier  or  issue.                               ouistandlng.  and  not  (  nited     tr»nsi*'tl«i  by  lu  w4 

yet  paid.  States.    oTinailsAe.    ^utn. 

trnlon  Pacific  Co...^... I36.6S8.000  Oe |S.V*8B  »|2/IB1.]K8  8l»Ma.Ml  M   $0^9 

KaLsas  Piclflc,  late  U  J* 

£.  D ^ 6.808  000  00    126,0<«  CO  884.81S  W      6S1;B4  99     »5n:i 

BiouK  City  and  Pacific i.H^83i»  00    ttM^  *0  MMB  6»           Ull      sen: a 

r-n  trill  Parlflfi  J****®'*^  9*      <>'***  2i       588^16  80      «*  •«  «    i  «i «» « 

central  Pacific 22.009,100  00   43»JL9i8i   l.UO.MT'S)     •M-« «  1^4«tt 

Central  Branch  Union  Pacific,  aasl^ees 

ot  Atchison  A  Pike's  P'k 1,600.000  00     82,C00  00      205316  26        6 JK  79     VB^IC, 

WestemPacific I,64.s0.0  00     lO.  &»  64       46,406  03        ..TTT...      HSkti 

Total  iflsaed «8,188,8»  00  l,m,SS0  09   4^6M»SI  1,896.»0I  $4«.«» 


M^^a^l^i^M^tf^iMtf^tf^^krih^^^^tfM^^^^MMk^^f^V^Mtf^ 


ITEBT  OF  NORTH  CAROLIIA. 


A  pamphlet  upon  the  debt  of  North  CArolioa  hat  reeeotlj  been  Iwuetl  bjH. 
Bowlby  WilioD,  Eeq.,  No.  7  Nassau  street,  which  cootaiDS  a  very  oom  3)ete  ftateioetit 
of  the  present  situaiion  of  the  financial  afiEatra  of  that  State.  19 e  have  eolr  tp&tf  to 
give  a  sommaryof  the  yalaable  cortenta  oft  hia  pamphlet,  and  those  of  our  readen 
who  are  interested  io  the  subject  will  do  well  to  procure  a  copy  for  careful  peroral. 

Of  TBI  DEBT  OF  KOaTH  OABOUNA  AT  TBI  OOMICKNCXMBIIT  OF  TBB  CUaaiirr  riKAi 
T&AB,  OGTOBSa  UT,  1868,  AND  AFFaCPaiATIONS  SIMOa  MADB,  IB  OOKFOaMITT  vrrS 
SECTION  5  AND  8  OF  AaTIOLB  V.  OF  TBB  NEW  OONBTITUTIOX,  IB  AID  OF  U:i»lM.U  * 
FDBLIO  WOaKS.  TbOBB  MARKBD  with  AN  ASTEaiSK,  TBVB  {*),  ABB  t  FECIAL  TaX 
BONDS, 

Date  of  jMn.Ait^ 

Kame  of  Corporation.                                                                   New  Iscaea.  i^m  net. 

Beported  October^l<»8 tliLrAiiS 

Western (Coalfleld)  R.  R.  Go Jitlyl,1868;  SfO.OS 

^'AOantic,  Tennessee  db  Ohio  R.R.  Go Joly  1, 1(>6!i,  8.fl000i< 

•Wilmington,  Charleston  A  Raih.  R.  R.  Co Jaiyl,  ItKS,  4Jk»j(m 

r6.T:3.« 
April  A  Uct. 

Reported  October  1, 1S68 #4.^?^ 

Bonds  for  fkind>nff  interest , Oct  1.18K8,  i,00QL'<n 

•WiUiamBton  ATaiborR.  R.  Co *'  ^  SOU.0DO 

•WehternN.  C.  R.R.  (Eastern  DlTlaion) "  »  muw 

•  »•  "  "     (Western       **      ) *  "  «  lOKUlW 

•  "  "  «     >       »  M      < AprUl,18W,  S^fidttO 

•  »»  **  "    (Bastem        "      ) ^^         *•  ».«0 

•Northwestern  N.  G.  R.  R.  C 3 **  »  l,imfi» 

•Western  (Coslfleld;  R.  R.  Co ^«         ^  IJBViJM 

SlVlSwTjn 


$34,99  »S 

Chargeable  on  general  revenue ....^ $ia,0<9t9<$ 

bpecfal  tax  or  preferred  debt»*«« • ia,MO.O00 

_        ML.  I  " 

Totaldebt ^ $H,a»«.» 

The  old  and  new  debts  appear  to  hold  the  same  rank  as  charges  on  the  rereaue. 
Mr.  WUron  remarks  oa  the  debt  as  follows :  **  It  will  be  aeen  that  the  lolal  Mi  ri 
North  Carolina  amonota  to  «  little  oyer  thirty-lbor  aod  one  quarter  aiiUtoQs  J 


1869]  TBNNS88BE  DEBT.  385 

dollars  (184,289,945),  all  of  which  bean  an  inteiest  of  six  per  oent,  payable  half 
yearly. 

*'0l  this  amount  eigbta^n  millions  an  J  forty-nine  thousand  nine  hondrel  and  forty- 
fiye  dollars  ($18,049,945)  is  chargeable,  principal  n  ><i  interest,  on  the  general 
revenues  of  the  State,  and  sixteen  millions  two  hancirt^d  nnd  forty  thousand  dollars 
(116,-  40,000)  are  provided  for  by  special  taxes  At  ratf^  a  eci6ed  in  Statement  No.  ?, 
which  is  in  confotm  ity  with  the  requirements  of  SectiorH  6  and  8  of  Article  V  of  the 
new  Cunstitntidn.  The  effect  of  this  legislation  is  to  make  the  new  issue  of  bonds. 
»Qce  first  October,  1868.  a  preferrence  charge  on  the  entire  assessable  property  of 
the  State.  Whatever  may  be  said  rpspecling  ti.e  poliry  of  creating  what^  ic  effect 
is  a  pieferred  debt,  the  fact  nevertheless  exists.  In  o  her  words,  the  holders  of  the 
first  class  of  b  n<is  must  rely  on  the  future  development  of  the  industrial  resources  of 
the  State  fur  the  means  to  meet  the  interest  tbereon,  wLiist  those  who  hold  the  sec  nd 
class  will  receive  prtmpt  payment,  if  the  valuation  of  the  assessable  propeity 
amounts  to  enough  to  cover  the  whole  issue. 

The  special  tax  authorized  to  be  levied  by  the  several  acts,  is  equal  in  the  aggre- 
gate to  47.08  of  one  per  cent  on  the  whole  assessable  property  of  the  Slate,  «hich,  as 
will  b«r<  alter  be  seen,  amounts,  on  a  close  estimate  founded  on  the  last  census,  to 
over  $'i5t ',000,000.  The  sum  that  will  accrue  and  be  applicable  to  the  interest  on 
thegros.4  amount  of  special  tsx  bonds  will  amount  to  |1,177,000,  while  the  interest 
is  only  |974,400,  leaving  an  annual  surplus  of  |202,6C0,  as  a  sinking  fund. 


^^^^^i^«^M«««^^M^^^^M  A^^^^^# 


T£ir5ESSEE  DEBT. 

The  biennial  report  of  the  Comptroller  of  the  State  of  Tennessee,  as  submitt  id 
to  the  (General  Assembly,  shows  the  following  riilative  to  the  State  finances : 

To  balance  in  the  Treasury  Oct    1, 1867,  $689,960  54. 

LiPs  the  foUawing  credtis:  Over  checks  in  banks,  $  0,016  SO;  paid  members  i»f 
the  Legislature  by  Dr.  Stanford,  Treasurer,  $1,982  84  ;  Bank  of  Tennessee  mon«\. 
$311  64;  Tennessee  National  Bank,  Memphis,  $58,142  71,  making  a  total  of  $9u.- 
403  49,  whi:h  left  an  actual  balance  in  the  Treasury  of  $499,547. 

Amounts  paid  into  the  Treasury  on •  warrants  issued  for  the  two  years  ending 
Nov.  SO,  1869,  and  on  previous  issues,  $5,887,629  65.  Orand  tatal  received  and 
ia  th^  Treasury,  $5,887,1  "id  90. 

Within  the  same  time  there  haa  been  paid  oot  of  the  Treasury  $5,857,967  06  ; 
lea?ing  in  the  Treasury  Oct.  1,  1869,  $29,209  A4. 

The  following  gives  the  receipts  and  expenditures  for  the  first  year  ending  Oct  1, 
1878: 

To  balance  in  the  Treasury,  Oct.  1,  1867,  $499,547  05. 

Payments  into  tlie  Treasury  on  warrants  issued  this  year,  and  on  former  issues, 
12,545,747  49. 

Payments  out  of  the  Treasnry  on  warrants  issued  this  year,  and  oo  former  issii  'S, 
13.028,945  52,  leaving  a  balance  in  the  Treasury  on  the  1st  of  October,  1868,  oi 
$23,319  02. 

The  following  gives  the  receipts  and  expenditures  for  the  second  year,  ending 
Oct.  1, 1869 : 

To  balance  in  the  Treasury,  Oct  1, 1868,  $21,849  02. 

Payments  into  the  Treasury  oo  warrants  issued  this  year,  and  en  previooa  issues, 
12,842,209  06. 

Payments  out  of  the  Treasury  on  warrants  issued  this  year,  and  oo  former  issues, 
12.834,848  54. 

Balance  1^  the  Treasnry  1st  October,  1869.  $29,209  54. 

The  following  is  a  statement  of  the  State  debt  proper : 

Turnpike ^ $1,928.866  66 

Bank  of  Tenneftsee. 1,000,000  00 

Railroads 410,250  00 

uermiu.e  Purchase 48,000  00 

Slate  Capitol 668,000  00 

Total ', $8,844,606  66 

Fnnded  Interest 785,658  00 

Totil ...;.•..... $4,030,169  6ft 


386  TSST8   OF  STEEL  RAILS.  [NoHmhiff 

The  state  has  loaned  to  tarapike  roads  $645,000  io  bonds. 
Tho  followiog  is  a  statenaeot  of  the  Railroad  debt : 

State  tKinds  loaned ••• .  ptJllfV* 

BoadB  indorsed  by  ihe  State i,lK,oeO 

Jfunded  latercftt ^ J,!li«« 

iQtereet  to  July  1,1866 - ^ VB^tn 

Total. 5mkS 

Claim  of  the  United  States  e«.  Edgefield  and  Eent^icky  Baflroad  sMined' 
fl80.804. 

Claim  of  the  Uoited  States  e«.  Memphis  and  Clarksrille  Railroad,  awased, 
$S80,766  24. 

This  added  to  the  former  total  makes  184,689,084  89. 

The  total  debt,  iocladio;^  State  debt  proper,  bonds  loaned  to  tnnipikei,  boodi 
loaned  to  railroads,  is,  by  the  above  figures,  139,264,244  56. 

Since  the  war  there  have  been  loaned  to  the  railroad  companies,  in  bonds,  lU,- 
292,00^  and  to  tampike  companies,  in  bonds,  $55,000 — making  a  total  of  |1S,- 
847,000. 

The  followinfi:  despatch  is  of  interest  in  this  connection  : 

Nashtillb,  Oct.  18. — In  the  Senate,  tO'day,  the  followiog  resolntions  wereonani 
moo^ly  adopted : 

Resolved,  That  the  people  of  Tennessee  will  noTer  signalise  their  restontioo  to 
the  control  of  public  affairs  by  coantenancing,  in  any  manner,  a  disregard  of  their 
public  obligations. 

Reaolvedt  That  noder  strict  retrenchment  and  ri^id  economy  in  all  other  respeds, 
all  the  avaiable  revennes  and  resoarces  of  the  State  shoold  be  fidthfblly  appro- 
priated to  the  payment  of  the  interest  on  oar  bonded  debt,  and  the  ^seeori^  rf 
the   principal  at  maturity,  for  which  they  are  in  honor  bound. 

Mr.  A.  J.  Fletcher,  Secretary  of  State  of  Teonesiee,  io  a  i«tter  to  Hie  Kew  York 
Tm€9  remarks  that  statementa  to  the  effect  that  the  bosineas  of  cancelling  oliboedi 
and  iasoiog  naw  ones  has  been  condocted  in  a  careless  manner,  without  fall  and  socorata 
record  of  transactions,  are  all  untrue,  and  that  all  the  proper  books  have  been  kept 
and  the  business  conducted  with  the  ,usuai  care  practiced  in  such  operatioQi. 
He  says  farther : 

**  Any  able  business  man,  if  he  could  be  untrammeled,  can  take  charge  of  the  tfans- 
ces  of  Tennessee,  and  by  a  jodicious  management  of  the  State's  lieo  on  her  nil- 
roads,  reduce  the  debt  of  the  State  in  twelve  months  to  nine  million  doUars— a  eca 
that  the  people  of  the  State  would  not  be  conscious  of.  Half  of  the  eotirs  debt  reets 
upon  the  railroad  companies  who  pay  their  interest  without  difficulty,  and  ivbo  are 
already  considering  the  project  of  buying  io  the  bonds  of  the  State  f^  an  eitenraffi- 
cient  to  extinguish  their  entire  liability  to  the  State.  This  would  certainly  be  aoooJ 
fioaccial  policy  on  their  part,  and  as  the  Louisville  and  Naabvil  e  Riilroad  Cotiipajj 
has  done  so,  strong  hopes  are  entertained  that  other  companies  wii  follow. 

"Your  correspondent  givee  the  new  W>ndhnlder8  thit  comftirtin?  ae»nraiire  ti«M 
their  interefit  will  not  be  paid  for  ten  yuuf-.  The  durittiuo  of  the  su^pateimi  <•>  ^^ 
payjoent  of  the  interest  o-i  t*ie  State  debt  «ill  depend  upon  the  artioo  of  ifa»  Le^' 
islature,  now  about  to  commence.  Some  of  the  ablest  men  in  the  St-«fe  are  memtwrs 
of  that  body,  incliidi  g  learned  liwyers  and  experienced  holiness  .  meo  aod 
large  property  holders.  Of  course  no  prediction  can  be  safely  made  as  to  tibe 
duration  of  the  suspension,  but  ihere  is  no  reason  why  payment  should  not  be  les&awd 
in  two  vears. 


a^k^«^l^«^aiM^%^w^^k^««««*^««^^k#^n«» 


TESTS  OF  STEEL  RAILS. 

The  circular  of  Messrs.  John  A.  Griswold  A  Co.,  of  Troy,  New  York,  thus  deacribe 
their  method  of  testing  steel  rails : 

*  1st.  A  teating  ingot  from  each  five- ton  ladleful  of  liquid  steel  isbamsiered  iota 
a  bar  and  tested  for  malleability  and  hardness,  and  especially  for  toaghoeHt  bf 
bending  it  double  cold.  Io  case  any  test  bar  Calls  t>elow  the  standard  eatablisbed 
as  suitable  for  rails,  all  the  ingots  cast  from  that  ladleful  of  steel  am  laid  a«d«  i* 
other  uses. 

**2<J.  All  the  ingotS)  and. each  rail  rolled  from  them,  are  stamped  with  the  Dumber 


1869]  EAILEOAD  ITEMS.  387 

of  the  charge  or  ladleful.  A  piece  is  cat  from  one  rail  in  each  charge,  and  tested 
by  placiDg  it  on  iron  supports  a  foot  apart,  and  dropping  a  weight  of  five  tons  upon 
the  middle  of  it  from  a  height  proportioned  to  the  pattern  of  rail.  A  blow  equiv- 
alent to  a  ton'  wei^cht  falling  10  to  15  feet  is  considered  a  severe  test.  We  use  a 
fi?e-tone  weight  falling  from  a  less  height,  believing  that  it  more  nearly  represents  in 
kind  (although  it  of  couse  exaggerates  in  severity)  the  test  of  actual  service  m  the 
track. 

"In  case  a  test  rail  does  not  stand  the  blow  deemed  proper  ani  agreed  upon, 
the  whole  of  the  rails  made  from  that  charge  or  ladleful  of  steel  are  marked  No.  2, 
and  sold  for  use  in  sidings,  where  their  possible  breaking  would  do  no  great  harm, 
and  where  their  greater  hardness  and  resistence  to  wear  would  be  specially  valuable. 

**  In  addition  to  this  double  test,  the  rails  are  rigidly  inspected  for  surface  imper- 
fections. 

"  We  believe  that  these  teats  render  it  practically  impossible  for  us  to  send  out 
rails  of  ioferfor  quality. 

"We  further  invite  railway  companies  to  send  inspectors  to  our  works  to  wi.ness 
the  tests  mentioned,  and  other  tests  and  inspections  agree  i  upon." 


RAILROAD  ITjSSIS. 


NoaTH  Caeolina  Railroad.— The  report  of  this  eoirpaoy  f  r  the  year  ending 
May  SI,  1869,  shows  that  the  earnings  and  expenditures  are  as  follows  : 

X 

SABinHOS. 

From  passengers $196,187  9S 

"     ftrel^ht ..  9&4MQ  90 

"     suits 16,735  00 

"    rentof  can 4,848  64 

Total $581,807  49 

■Xlf am  DIT  UIKKB . 

Condactlng  transportation »«^*^^  $108,174  62 

Loft^anl  damsse..... 8,656  61 

Maioteoanoe oimoUve iK>wer S5,879  68 

Maintenance  of  cars 87,549  97 

Hftloten*nce  of  road  93,708  27 

BnUdlDfTii  and  bridges 10,901  88 

New  railroad  iron,  chairs  and  spikes .  79,655  84 

8absi8tence  for  hands »..  17,479  66 

Total ^  ...  $401,110  87 

Net  operating  expenaes ^ $861,838  00 

Leavingasnet  income  over  operating  expenses 830,664  40 

Of  the  above  amount  $189,877  is  regarded  as  extraordinary  expenditures. 
The  earnings  and  expenses  for  four  years  past  have  been  as  follows : 

Paspengers.  Freight.  Total. 

Fcr  year  ending  May  81, 1866 $198,968  $59»,7ao  $798,998 

*^          **        Mayai.1867 201,768  816,797  619,6B9 

"          •'        May  81, 1868 174,776  866,165  687,940 

'*          ••       May  81, 1890 ^^    196,188  885,710  581,898 

Expenses  for  the  fiscal  year  endings 

„  Old.  New.  Total. 

HaySl,1866 $71.045  88  $918,880  46  $981,875  79 

;:    8i,186T 244,838  49  44M83  74  6iH),466  88 

;;    81,1868. 97,1W79  411,895  64  608,586  48 

'*    81,1860 £8,97899  401,110  87  47U,i)88  86 

The  debt  of  the  company,  as  shown  in  the  financial  statement,  is  $677,869  04. 
Considering  the  assets  oo  hand  of  $110,522  93  applied  to  this  debt,  we  have  the  sum 
of  $667,386  11,  and  irom  this  take  the  probable  deduction  of  $38,656  k9,  which 
will  be  on  the  Ne^ro  bonds  given  in  1864  and  1866,  and  it  will  leave  a  debt  of 
1588,679  72.    The  President  remarks : 

*  It  is  the  desire  of  the  administration  to  have  all  the  debt  in  the  mortgage  booda 
of  the  company  running  twenty  years.  Of  this  debt  there  is  $146,000  in  the  twenty 
year  bond^  to  which  add  $15,280,  the  balance  on  Dividend  No.  9,  and  the  scrip 


888  RAILROAD  ITKM8.  [NoHmher, 

which  18  conyeriible  into  anch  b^nda.  and  it  makes  f  261,t80,  which  anm  wiHndnet 
the  debt  to  be  changed  into  the  twenty  year  bonds  to  $872,449  7!^,  which  ebaagv 
can  be  eaaily  effe^cted  by  the  aasistanee  of  our  atockholdera. 

"  To  manage  the  road  with  nocceaa  and  pay  dividends,  to  giye  it  era  Ut  m  the  fius- 
cial  circles,  and  even  along  its  line,  it  is  necessary  that  its  present  liabilitiei  be  m 
arranged  that  its  current  expenses  can  be  paid  promptly,  and  the  diridends  and  oths 
debts  cashed  by  the  Treasurer  as  they  are  made  or  become  doe.  The  6njDcial  ttUs- 
roeut  shows  ^hy  no  dividend  is  declared.  I  consider  it  ju;t  to  the  stockholdefi  tkit 
not  less  than  six  per  cert  he  paid,  and  that  in  cash.  It  is  very  nowise  to  fisj 
dividends  in  the  bonds  of  the  corporation  when  it  snbjects  the  bonds  to  soch  betty 
discounts  as  have  been  the  past  year,  which,  if  continued,  would  aoon  lead  to  bask- 
rnptcy,  thereby  depriving  you  of  your  aU^>yonr  stock. 

AMOUKT  or  BOKDS  ISSUBD  UNDR  TOt,  XOftTOAOS. 

"  At  ycnr  annual  meeting  in  1867  it  was  ordered  that  $800,000  fi'vt  moitnte 
bonds  be  i^rued.  nnd  at  your  last  annual  meeting  a  resolution  was  paseed  authnriuig 
the  President  an  i  Directors  to  iisoe  $700,000  more — ^making  in  all  $1,500,000,  ths 
total  amount  of  mortgage  on  the  road. 

**  It  hss  not  been  necessary  to  issue  anv  Bonds  onder  the  last  resolctioo  of  year 
Company.  We  hive  on  hand  at  present  $198,600  of  the  $800,000  ordered  to  bt 
issued  at  your  annuil  meeting  in  1867. 

filXKIKO  ruKD. 

*'The  company  has  paid  dnring  the  year  to  the  Trustee  $85,000  in  the  five  yetf 
bond?,  180,000  in  the  ten  year  bonds,  and  $76.(00  in  the  twenty  year  bonds. 

"  On  the  Ist  of  Jannary  next  the  payments  will  be  $46,000  in  the  five  yearbaodi 
and  $30,000  in  ten  year  bond<>.  Nothing  will  be  required  on  the  twenty  year  bovk, 
as  th(»  payment  made  this  year  on  the  amount  signed  is  more  than  will  be  required  in 
six  years. 

AIO  QlVn  TO  THB  COLUMBIA  AND  AUGUSTA  BAILBOAD  OOVPAStT 

"  Under  authority  given  in  a  resolution  at  your  last  meeting,  the  c  mpany  pur 
chased  from  the  Columbia  and  Augusta  Rjiilroii  Oompany  $100,000  of  its  tviod<st 
par,  for  which  notes  were  giyen  to  said  company  in  monthly  iastiilments  of  |li>M 
esch,  the  first  being  due  October  1st,  1868.  and  the  last  May  1st,  1S«9.  These  oUigt- 
tions  h  tve  all  been  paid  by  our  Treasurer  as  they  bjecame  due. 

**  The  bonds  botu<bt  from  the  Columbia  and  August  i  Railroad  Oompany  have  bees 

disposed  ot  at  an  averai^e  dipcnuntof  16^  per  cent ;  $97,000  during  this  fiscAl  y«ar 

and  $3,000  since  the  close  of  the  year.    Thia  $15,000  Jisxiunt  will  oo  doobt  sooo  be 

,.eplnced  bv  incressed  travel  and  freight  over  our  liae,  caused  by  the  coiDp!etiiBof 

A  he  Columbia  and  Augusta  Railroad  to  Augusta.** 

Hartford  and  5xw  Hatbx  RAiLaoAO.— The  earnings  of  thia  roftd  ibr  the  yftn 
endiog  August  81, 1868  and  1869,  were  aa  follows  : 

1988.  IW  ^ 

From  nassengers $F91,O01  90  $9T^S^^ 

"    Irel  hi    6:tt,4fi4  06  .      .     mw* 

»♦    expresses 114,709  60  fiA-W^l 

"    malls 66«6trs8  «'®*1? 

"    renis,etc 8,458  86  e^iMMl 

$l,(i9T,884  89  %UBlXjUi» 

Expenses,  via. :       ^ 

Repslrs  of  rosd  and  bridges $836.497  99  $<1**?3 

Woi>d,  coal iind  oil 96,818  14  111,«W» 

Xaterial  and  labor  on  ecglnes  and  cars,  and. 

nvw  cars  and  engines 194.PS8  88  ^^f!!! 

TranrporuiionaccoaDt and {(fneral expenses 886,867  9S  9fT,89l'| 

Station  repairs  i>nd  improvvments    48,009  83  tf>ti79 

Loetanldamsgedgoods,  gratniiies,  etc 8,473  79  %9*i9 

$1,091,985  06  *i^S2 

KetMmlngs <n«,S99  61  ^^SS 

Interest  »nd  taxes 100,806  60  la^OMli 

Balance , ^ $481,610  89  $6«;i»« 


1609] 


RAILROAD  ITSM0. 


889 


Ooropared  with  the  rrerioas  jear,  the  gross  earaingsef  1868-9  riiow  an  ioereafe  of 
I114.S47  81,  with  ao  increase  id  ezpenses  of  |58,44S  47^making  the  increase  in  net 
eamif>gs»  $60,904  34.  The  balance  remainiog  after  the  payment  of  interest  and 
taxes  is  $6ii,628  60  icor  3  thxn  that  of  the  preceding  year. 

BALAN'OB  SHavr'.  AUGUST   81. 

Capital  stock $3,800,000  00 

Fond* 927.0  0  00 

Con.ing^olfand 49rZ,8T5  65 


V9*  IV  dfaod 

Profttat  dioss 

Divid*«nd«  mil  a'd... 
Debts  daa  by  the  Co 


15  .GOO  00 

.      S6V11  4t 

7,(J»7  00 

69,605  04 

$5,126,789  70 


Railway  baPdlng,  gronnds $8,407,984  76 

Kea' estita.  Una  and  4wel!lBgs.. 


183,817  48 

88,(00  00 

8,68^  97 

S64,<i00  OU 

268,440  07 


Bo  diparcba^ed 

T  m  insoa  Bridse  stocii 

Eqntpment  •ng'nes  and  ea^s.  . . . 
Wood,  s  ock,  and  tools  on  hand.. 
■  ebis  dae  the  company, >lTicl«d 

Ing  aconnts  dou  ftt^  the  N^. 

Y  &  N.  H.  R.  H,  Ci}.  adjastea, 

and  fands  i  ah  mds)of  agents. . .      4^4,607  48 

Connecticat  Riyer  Bridge 170,677  8  ( 

^tem  boat  Orient...* ..      198,088  81 

NiwWh  rf,  NewHiTen 45,823  67 

Windsor  Locks  and   Sofileld  B. 

»*.  Co 1,844  18 

Cash 168,8>7  8T 


$6,1^,789  70 
At  the  meetini^  of  stockholders  it  was  resolved  to  accept  the  legislative  peimissiow 
to  issue  $8,000,0.0  new  stock. 

East  Tk5RK8s«b  and  Oboroia  RAiLBOAD.~>The  report  for  the  year  ending  Jon* 

80, 1869,  shc'Ws  the  groes  earnings  and  expenses  as  follows : 

lABNiiras. 

From  frel|?ht $371,687  9T 

•*      Rxiresfl 10726  04 

••      Pas-ensiers tu8,^M9  18 

*'     Transportation,  United  States 6  180 

"     MMl 18,67002 

•*     Othereonrces ^.  10,650  48 


Total $515.994  66 

BXFXIfSIS. 

For  ttansroitatlon $60,818  74 

**    Motlvepower 8i,MJl)  18 

"    MaiiaeoSLC^cf  way 90,69^  SS 

Mactenance  01  cars... 68,8^6  66 

G  neral  cxpen»«'S 15,9i9  02 

Kxiraordii.aiy  expenses 80,)i60  09 

Taxes 6,63 1  61 

Depot  bnildiogd 8,879  77 


it 


14 

4i 


Which,  deducted  fion  the  gross  eajnings,  as  above,  would  leave  $168,981  48 
oet  to  pay  interest  to  the  State  if  Tennessee  and  on  second  mortgage  bonds,  the 
in' €  rest  on  which  amounts  to  $141,460  64.  This,  taken  from  the  net  earnlnKS  aa 
above  would  leive  a  balance  of  $  7,520  89;  of  the  sum  $14,181  91  has  b  en 
retained  durin4<  the  ye<r  by  the  Government  and  credited  uioothe  bond,  which 
leaves  on  hand  for  the  year's  operations  $18,888  98.  By  comparing  these  8gnrea 
with  tho^e  of  the  annual  report  of  the  y^ar  enting  June  80,  166S,  it  will  b«  seen 
that  while  the  earnitigs  of  the  present  yt;ar  exceed  that  of  the  previoua  year  $8«080  05, 
that  the  expfns«>s  have  been  reduced  very  greatly.  Including  extraordinary  expen- 
sed and  all,  it  hae  taken  67^  per  cent  ol  the  gross  earnings  to  operate  the  road. 

The  Preeident  remarks:  **  Since  the  last  annual  meetini;  of  this  company  we  have 
euccsfded  in  tff.cting  a  (ettlnroent  with  the  State  of  Tennesset*,  ot  our  intetest 
and  sinking  fund  account,  which  has  t'Cen  the  cause  of  so  much  annoyance  and 
trouble  since  the  war;  because,  from  the  annual  reports  of  the  Comptroller  of  the 
Stale  i>f  Tennessee,  made  to  the  Legii>latnre,  it  was  mado  to  appear  that  we  wera 
largely  in  an  ears  in  our  semi-annual  pnymenis  of  interest,  which  the  effect  to  damsffe 
our  '  I  edit,  from  the  fart  that  cutside  narlies  c  id  not  know  but  a  receiver  m  ght  be 
appointed  to  ta'  e  charge  of  the  road,  for  non-payment  of  interest  due  to  the  State. , 
Thie  apparent  difference  of  tHe  accounts  of  the  Gooipt roller  and  the  company  exis^ed^ 
not  from  a  want  on  the  part  of  the  cfficer^  of  the  State  to  do  us  damage,  but  from 
honest  ecnvictions  on  iheir  part  that  they  had  no  right  to  credit  theompany  with 
certain  payments  that  had  been  lUade  aft  r  the  1st  of  January,  1861.     But,  under 


390 


B^&BOAD   m 


\N6wemkB^ 


ft  rfcent  deekiMi  of  the  Sapreue  Ooari  of  Ike  8ute,  all  payiMots  oftit  to  Iq^j 
auU  oriced  partieB  upon  all  con  tracts  were,  le^*!  aod  valtd,  mheo  thqr  were  nesftd 
vitkcul  protest.  And  uodsr  I  is  d«riaioo  of  the  eoart  a  full  aod  eoinrkle  a^k^^ 
mcDl  was  made ;  ibis  company  havinf;  luarfa  thetm  psyfi'enta  to  the  Bsak  of  T«»- 
neesee,  the  fiscal  sgent  of  the  State,  befor<)  the  removal  of  the  bank  froa  the  Stats: 
which  cettlemeDt,  as  made^  is  in  accordance  wrth  our  books  and  is  aatisiacfaorf  ts 
the  .*>  tate  aod  to  the  <  iicers  of  this  company. 

**lhe  ioteiest  due  to  the  State  of  Ternespee,  as  wcU  ae  ee  our  aeeoad  iEartp|s 
bond^,  was  paid  in  full  od  the  1st  day  of  July  la»t." 

^BSTftACT  OF  niB  fiXNBBAL  COKSlTlOIf  OF  TBK  XA8T  TnfHKSan 

OOMPANT,  ON  TBa  80tH   DAT  OF  JOHa,    1869. 

OoeKUt'*  Bind $1,00006 


Gapital  Block $),290,(Nr7  85 

StateScrip 3>«,f»9  (lO 

State  Loan— Old l.(m,000  00 

'•         "       New 480*77  60 

Coippany  Bonds— OJd 64(»,(  0 1  00 

'*  *•       iNew l.W.4n0U) 

Bndoreed  Bonds 1:5.001  Oi- 


Cvapon»C<  mpaoy Bonds,. 
"      End  rstd. 


Bills  Payable. 

Unite '  States  Incoae  Tax. 

PtyKoils 

"Due  to  /gents. 


*• *• • •  •  « 


Other  Beads.... 

"    IndlTidnalB 

Interest  dne  let  July  on  Com- 
pin>  and  Endorsed  Bonds 96,712  00 


7.000  00 
6,7iJU00 
1,819  49 
IJM  40 

10,986  41 
8«4  46 

19,'i78  18 
1,490  84 


••««•■•• 


Oqa  Enuorsed  Bond .... 

Kcm'StAiecoaponSc 

T«-I(>graph  8to«k .. 

Fxprera  CoBBpanj  Stoea 

PoetOfBce  Dep«itment      

VST  anspor'ation  Aoconnt 

Southern  fixpres*  Co 

Hohton^alt&PlastcvCo. 

Dae  from  Aeent- 


1^10 

19B0D 

ISO^i 

fijlVOlO 

8,0^*7 

ftt.1S4i> 

1.164  00 

ton  9 

other  Snads 81,8IS6T 

Fonds  on  hand  to  pay  lat  rest, 

t  nrcbase  Iron,  BaUe,  Ac 11,01  K 

Foods  In  ADgucta,  tieoxKla,  to 

pay  Interest 1.145  W 

Ca  k 9S.f6ie» 

Hoadaadaxtores 1.49S.TMM 


Itbi 


$3,759,:&7  69 

Hessrp.  Henry  Clews  A  Co.  adYcrt'se  to  pay  both  ftlie  April  and  October  ooaprss 
•3  fbe  Special  Tax  Bonds  of  the  Stale  of  North  Carolina,  at  their  banking  hocae  63 
Wall  streel. 

jKFFSRBOMTiixa,  Hadbon,  ard  iNDiAaAFOLis  RAiLaoAs. — The  report  for  the  yesr 
ending  December  81,  IS  68,  has  just  been  issued^  and  ooatains  the  following : — 

The  gross  receipts  of  the  road,  during  tbe  year  ]S68»  were  $1,068,629  76. 
As  compared  with  the  preTions  year,  when  tbe  receipts  amounted  to  $1^164,799  9i, 
this  indicates  a  decre4ise  of  nearly  nine  per  cent  This  falling  off  was  caused,  in  a 
great  measare,  by  the  sharp  competition  for  business  that  was  waged,  during  a  Urg« 
po  tion  of  the  year,  between  the  four  principal  roads  known  as  '*^  trunk  lioes^— a  coe* 
test  which  affected  not  only  the  revenues  of  those  particular  roads,  bat  of  tU 
other  a,  inclndlDg  our  own,  doiog  business  in  connection  with  them. 

By  tbe  teriiis  of  a  written  contract  between  the  City  of  LonisYille  aod  the  JefEer* 
ponville  Railroad  Company,  dated  November  10, 1868,  the  det>t  due  by  tbe  railroad 
rcmpany  to  tbe  city,  th'O  amounting  to  1260,000,  was  to  be  rikicbarged  hj  tke 
delivery,  within  five  years,  of  a  like  amount  of  aay  of  the  outstanding  bonds  ol 
said  city.  Pureoant  to  this  sgreement,  tbe  Jefiersonville  Railroad  dropsny  delivtred 
f60,00i>  oftuch  bonds  in  December,  1863,  thereby  reducing  the  debt  to  $150,0u*>. 
Some  time  befure  the  expiration  of  the  five  years  mentioned  in  the  contract,  tliis 
company  made  a  purchase  of  Louisvile  ci?y  bonds  to  (he  exunt  of  |76,00o,aBd 
tendered  tbem  to  the  proper  authorities  of  that  city  in  further  liquidation  ol  tke 
d«^bt.  Tbw  tender  was  unconditicnallly  declined,  under  advice  of  tbe  City  AtiorntT, 
who  e*d  the  opin  on  that  the  contract  between  the  city  an  i  the  JefTf-rsoovi  le  Rail* 
road  Company  was  illr gal  and  Toid  m  so  far  us  it  permitted  any  b  nds  to  be  rrttixf^ 
except  tbe  parti<'u!ar  issue  upon  wh'cfa  the  cdebt  was  bssed^  After  lim  refusal,  of 
course  no  fnrtber  steps  in  the  case  were  taken  by  the  company. 

If  ibe  decieion  of  the  Ciiy  Attorney  is  to  le  regarded  as  rorclusive^  it  u  ant 

hel  eved  that  our  position  has  been  affected  unfavorably,  cince  it  wdt  only  remsio  iti 

this  ccmpiny  to  discharge  her  liability  in  the  premised  by  rede«*m]og  $150,000  of 

the  bonds  originally  issued  by  the  city  of  Louisville  to  the  J«rfierBoi»vilIe  Railmad 

Company,  v  ken  tbe  same  mature,  vis. :  May  1, 1682,  or  earlier,  should  it  be  d^ed 

desirable  snd  found  practicable  todoEO — meanwhile  anticipating  evcntaby  fxekasgiif 

for  those  bonds  tbe  securities  we  now  bold,  whenever  the  .urn  etn  he  made  oo  fiiv<r» 

able  terms. 


1869] 


RAILROAD  ITKU8. 


891 


The  late  f  eriod  at  « hich  this  report  goes  to  press  permits  a  close  est'mate  to  be 
made  of  the  cooipan^'d  bu»in<'»8  for  the  first  six  moDlbs  of  ]  869.  The  receipts  iDdi- 
cate  a  steady  stid  handeome  iocreaee  over  thocu  for  the  corresponding  months  of 
1668 — tnfficient  to  nvsrrant  the  lief  that  the  esriiin^s  of  the  present  year  will  con- 
siderably exceed  eose  of  1868,  if  indted  they  do  not  equal  those  of  1867. 

KS0SIPT8  AttD  xzpaHsxa. 


RBCX.PTf. 

Freight $f52,6tf6  18 

*B84«:Dgers 444,546(15 

Bxp  e^s dO.SiiOOO 

MaU 8tmuC(0 


7ctal  Receipts. 


.$1.068,5S3  73 


Fud $74,»8 

( aserni^er  Expenses 8l,':90 

^  reifrbt  Bxpe.  ses  . .   ....  116,989 

Repi^irsofKoad 185,844 

Other  Sxpenftes 936,966 


Total  Bzpeoses  $^98.(68 

Netesminxs 864,965 

The  passenger  bostness  shows  a  decrease  of  $28,687  69.     Eliminating  from  the 

passenger  acrounts  for  1667  and  1868,  'he  military  transportation  performed  daring' 

the  war,  butouly  reported  to  us  and  entered  on  our  books  during  thoee  years,  the 

esmings  will  sppear  as  follows  : 

Pssserger  Receipt  frl887 $4r8,tS4  81 

DedaoL  old  Military  Reports 1U89  96       $446,944  88 


Pas«erg  rHe  etpt8f'>rl868 $484,546  65 

redact  o'd  Military  Reports 1,971  10 


Deere  ISO. 


The  falling  off  in  the  regular  trarel  is,  therefore,  only  $18,668  88. 

OOIIDINSKD  BALANCE  SHUT. 


488.973  65 
$18,663  88 


Cost  of  Rosd  snd  Eqnipmsot, ■  $6,097,842 

Jhve'tmertU — 

JeflTersonv  He  B.  R.  Rord*.  40,000 

Isd  aoopolls  A  Madison  RR.  Bonds  197,50 ) 

Cityol  Loa  svil  e  B<mdr 76,000 

Stock,  in  L  n  Bvitle  Bridze  Companr.  810,000 
Lake  lirle  A  LouiiTilJe  Railroad  tom- 

p«ny  194,999 

OntsideH^l  JfidUie 80,863 

BUsBectiivabe 19,848 

Cash 8741« 

Due  hy  the  United  States 9,165 

Dae  byKailroad  Compan*es (8,409 

Due  by  other  Atsociatlons  snd  by  In- 

dinduals 100,680  | 

Dne  by  Agents • 64,481  i 

Vnel  and  other  SoppUet  on  hind 85,943  j 

$7^,W4| 


Capital  Stock ^.$9,000,000 

Funded  Dtbt^ 

Jett'ers' nvilie  R.F.  Bonds 397,000 

iDdisnopolis  A  Madi>on  RR  Bonds  619,000 
JtffersonTill<*,  Msduon  A  Indianap- 

oli«R.R.  Bonds 1,M1,000 

Bonds  of  the  City  of  Louisville. ...  150  OiKi 

Tempor*ry  Bond  Account 60,000 

SaiplOB  fond  of  the  JeffersonTlUe  Rft 

Com  sny 770,44'S 

Profit  &LoPS 662,199 

CaplU?  Si or.k  Sinking  Fund 40,449 

BjfisPayab'e 869,88* 

Dae  to  Railroad  Companies 1U6,868 

Due  to  otJier  Associations  and  to 

IndLTldaals 176,146 

$7^^984 


Kansas  pAcirxo  Railway.— A  correspondent  of  the  New  York  Ttmet^  under  date 
'  f  S«pt.  26,  writes  in  regard  to  this  road  as  follows :  While  acknowledged  to  be  at 
least  as  deserving  as  the  Union  and  the  Central  Pacific,  the  Kansas  Pacific  was  nok 
as  lucky  as  its  coo) peers;  for  when  the  line  had  been  built  to  a  distance  oi  893  miles. 
Congress  f  oddenly  shut  down  on  any  further  subsidy.  However,  the  road  was  Itst 
year,  by  irivate  enterprise,  pushed  out  some  miles  further,  and  it  now  abuts  at 
bhcridan,  406  miles  west  of  the  Missouri  River.  From  Sheridan  preparations  are 
under  way  to  extend  th^  line  226  miles  to  its  natural  terminns  at  Denver,  whence  it 
will  connect  wiUi  the  Union  Paeific,  by  the  **  Denver  Pacifio  Railroad,"  now  actively 
under  construction  and  to  be  finished  this  year. 

TBI  OOYiaMMKNT  LAZfO  OEAHTS. 

OoTemment  was  liberal  in  it«  grants  of  public  land  to  the  builders  of  the  Kansa' 
Pacific  Rial;  audit  is  mainly  to  this  clcurostance  that  the  already- mentioned 
astonishing  progress  of  the  State  of  Kansas  is  attributable.  The  concession,  as  is  well 
known,  was  of  the  alternate  section  within  twenty  miles  of  the  road  on  each  s«de. 
This  gave  the  Gjuipany  above  six  million  acres  of  land  lying  between  Kansas  City 
and  Denver.  It  is  worthy  of  remartr,  in  parsing,  that  this  provision  on  the  part  of  the 
Oovemment  (by  which  the  railroad  receiver  only  the  alternate  or  **  odd-numbered" 
section)  is  regarded  by  the  people  here  as  sn  ezceedini^ly  wise  one,  for  it  completely 
baulks  the  speculaUirs  who  would,  otherwise,  absorb  large  tracts  of  land  tv  boll  for 


302  COMMSRCXAL    CHROKIOLB  AKD    BSVISW.  [^OMUltfr, 

a  rise.  At  (be  rame  time,  parties  hujv  g  lands  in  balk  fi«m  the  railroad  rowpinj 
and  settlinf?  them  with  actual  settlers,  are  eoebled  to  obtain,  under  tbe  HtUDOtoad 
law,  the  adjoinirg  ("  eFen-numbered")  sectioos  from  Government. 

AGTX09  OP  THE  kxlLWAT  COBPORATfON— LARD  SALWA. 

To  people  the  wiMemera  ib  ough  which  tbe  road  runs  was,  of  coarse,  tbe  first  cue 
of  tbe  corporation,  and  to  this  end  judicious  measares  were  taken.  The  Coffipasy 
bas  been  selling  and  is  goici;  to  sell,  ut  very  low  prices,  fairas  to  actual  scttlcrv. 

In  a  general  way,  then,  I  ma?  stAte  th.it  the  Kansas  Pacific  Road  has  tl-isjcar 
rold  upwards  of  276,0<0  acres.  With  unimportant  exceptions  these  8al-*a  have  bees 
made  to  actual  settlers,  as,  indeed,  is  sufiifiently  evinced  by  tbe  fact  that  the  par. 
chases  have  been  from  80  to  820  acres  each,  and  th  it  the  sales  have  b  en  mads  to 
over  2,000  ciifferent  individuals.  The  price  h  s  Taried  from  f  2  to  $6  per  acre. 
Tbe  grosA  receipts  of  the  Ennaas  Pacific  Company  from  tbe^e  land  laics  have 
reached  tbe  large  airgregate  of  above  |600,000,  wnieh  would  make  tbe  price  pn 
acre  something  less  than  $3.  These  sales  are  increasing  in  a  wonderful  ratio,  whik 
the  perfect  satisfacti'^n  which  emigrants  have  f>und  in  the  climate,  soil  and  ridi  a^ 
culturul  tewards  of  Kansas  forms  a  powerful  attraction  with  thwe  who  hear  from 
their  old  neighbors  such  good  ace*  unt".  Nur  is  thi«  movement  e^mfined  to  our  own 
countrymen^;  for,  owing  t»  tbe  systematic  organisation  of  tbe  Nafonal  Land  Goo- 
pany,  which  works  in  concert  with  the  Kansas  Pacific  Roa  1,  very  lar«fe  •«  es  of  laiid 
have  of  Iste  been  made  tn  Efigli»h,  German  a,d  S^redi^b  co  o  Jsts.  Here,  for  i"*Tw»f. 
are  two  or  three  illustrations.     They  are  samples  from  among  many. 

ENGLISH   AVO  GEaVAN  COLONIES. 

1.  A  single  English  colony,  a  few  weeks  ngr>,  bought  80,000  acres  of  land  bere. 
The  tract  is  to  be  divided  among  no  less  than  twelve  hundred  diffdrent  families,  the 
families  of  well-to-do  English  farmers  and  ai  tisans.  I  saw  a  sc  re  of  the^e  familiei^ 
who  have  already  arrived,  lliey  bring  wi  h  them  tbe  roeane  to  stock  ibeir  fAims,aiid 
baild  themselves  bouses,  and  they  have  already  bought  mowing  mschinea,  feed  for 
their  cattle,  Ag.  2.  A  Ge  min  colony  bas  recently  bought  some  24,000  acrfs  aarth 
of  Ju«*ction  City,  (180  miles  west  of  tbe  Missouri,)  upon  which  one  hundred  and 
twenty  families  are  to  be  established.  8.  A  Swedish  oolooy,  a  year  agoi,  boogbt 
15,^00  acres  south  of  Salina.  This  colony  has  already  sent  oat  over  two  faomm 
familie?." 


COMMERCIAL  CHRONICLE  AND  REVIEW 


«««^«^a^M^«^«^k^«^«^ 


Monet^ryAffilrv— Bates  of  Loans  md  Dipcoauts—Bondfi  sold  at  New  York  Stock  Ksduafe 
Boird— Price  of  Govern  meat  Secarltics  at  New  York^Course  of  Coneols  and  Acertoka 
Hecu'ltlesat  New  York— ( »penlng,  Highe-t,  Lowest  an^  Cloalng  Prices  M  theNewYofk 
Btocb  Exchange- General  Movement  of  Cola  and  Balllon  at  New  York-Cooise  of  Gold 
at  New  York— Coarae  of  Fore  gu  Bxchange  ut  New  kork. 

October  bas  passed  with  an  easier  cunditioD  of  tbe  money  market  tbaa  was 
expected.  Notwitbatandiag  th?  abandaDce  of  tbe  crops,  the  amoaot  of  carreocj 
Eeot  from  this  centre  for  moving  them  bas  been  much  less  than  osiial.  This  £ict 
arises  partly,  perhaps,  from  the  reduced  prices  of  prodace,  but  priocipaily  from  tbe 
circamstance  of  the  bank?  not  having  bad  Eoflieient  small  notes  to  meet  tbe  wtou 
of  tbe  agricaltaral  sections,  where  tbe  lower  dco^'minatioLS  of  currency  sR 
required  for  tbe  parcbase  of  grain  from  the  producers.  This  circaoistaaoe,  while 
it  bas  helped  to  keep  money  comparatively  abundant  here,  so  that  tbe  rate  oo  cai 
loins  h'is  ranged,  in  the  midst  of  tbe  crop  season,  at  4<^7  per  cent,  most  be 
expected  to  be  followed  by  an  nnosnally  light  relnrn  af  carrency  after  tbe  com- 
pKtion  of  tbe  crop  movement.  Soma  considerable  amonnls  of  money  were  rast, 
early  in  tbe  month,  to  New  Orleans  and  Savannah ;  bnt,  later,  tbe  demand  turn 
that  qiarter  ceased  almost  entirely.  Tbe  Soath  would,  undoobtedty,  bave 
drawn  opon  New  York  more  freely,  bad  tbe  banks  been  ab!e  to  supply  vmH 


1860]  COUnROIAL    OHRONICLX   AND    RXVISW.  393 

currency ;  to  send  notes  in  denomiBations  of  over  $50  was  of  no  aval,  when 
the  money  was  required  largely  by  interior  dealers  for  the  purchase  of  small 
lota  of  cotton.  The  cotton  traders  have,  conseqtiently,  been  compelled  to  effect 
their  opfrationj  as  best  they  could,  though,  of  course,  with  some  inconvenience* 
Throughout  the  month  the  deliveries  of  new  currency  of  the  lower  denominations 
from  the  Treasury  have  been  quite  nominal.  The  expectation  of  an  ample  supply 
of  small  notes  in  November,  and  the  suppo  ition  that  money  might  then  be  sent 
oat  more  Iretly  to  the  South  and  West,  have  induced  the  banks  to  keep  their 
funds  as  much  as  possible  on  call,  in  preference  to  employing  them  on  time. 
Merchants  have,  consequently  found  it  diflScult  to  get  their  paper  discounted 
oataide  their  own  banks,  and  the  d.fficuUy  in  selling  notes  has  again  increased 
the  pre  sure  from  sellers,  which,  in  turn,  has  produced  distrust  among  buyers, 
and  at  the  close  of  the  month,  the  best  paper  was  negotiated  with  diEQculiy  at 
10(^l'i!  per  cent.  Tnis  stringency  in  the  di  count  market  has,  perhaps,  been 
the  most  ussatistactory  feature  of  the  business  of  the  mobth. 

Wall  street  speculation  8ti:l  shows  the  effect  of  the  severe  blow  dealt  in  the 
culmioation  of  the  September  gold  operations.  That  denouement  gave  an 
exposure  of  the  hollow ness  of  a  certain  class  of  speculative  operations  which 
appears  likely  to  hold  the  gambling  propensities  of  the  «*s'rfei"  hereafter  in 
severe  check.  Operators  appear  disposed  to  conduct  their  speculations  within  a 
lower  range  of  prices ;  and  in  every  branch  of  business  there  is  a  very  marked 
caution  T^e^e  ib  a  certain  undefined  hesitancy  about  engaging  in  operatrons  for 
hieb  prices,  which  appears  to  be  io^pired  by  a  conviction,  grounded  upon  the 
general  aspect  of  affairs,  that  we  are  on  the  eve  of  a  generally  lower  r.inge  of 
values.  The  markets  have  been  more  or  less  effected  by  a  dispa^-ition  to  discount 
the  probabiii'y  that  Secretary  Boutwell,  iu  his  report  on  the  assembling  of 
CoDjiress,  will  make  decidedly  conservative  recomnendaiion?,  designed  to  facili- 
tate the  re;*umption  of  specie  payments;  and  this  feeling  is  encourage'  by  inti- 
mations, coaling  fiom  quarters  which  give  thtro  sooie  weight,  that  the  Supreme 
Court  will  pronounce  the  Legil  Tender  Act  unconstitutioual.  Notwithstanding 
these  conservative  tendenr  i»?s,  there  has  been  a  slea  iy  recovery  in  Wall  street 
interests  from  the  efftrcts  of  the  -November  panic,  confidence  being  more  settled 
and  prices  steadier.  As  an  iilostratioD  of  the  contraction  of  speculative  opera« 
tioDs,  it  may  be  stated  that  the  totul  recorded  transaction?  in  shocks  for  the 
month  have  been  only4i7,91l  shares,  agnio^t  2.362,(27  shares  in  the  same 
month  of  1868;  while  the  sales  oi  Gcveinient  bonds  at  th^  Exchange  have 
been  only  $10,008,500,  as  against  $23  479,150  in  October  of  las  y.ar. 

United  Stales  bonds  have  been  d.  cidedly  wejk,  prices  being,  at  the  close  of 
the  momh,  about  2  percent  below  the  opening  figures;  which,  taking  into  account 
the  r.cciimnlition  of  one  month's  interef^t,  is  equ.il  to  a  decline  of  fully  2^  per  cent. 
CoofciJerable  sales  have  be  n  made  by  investors  and  financial  insiitutians  with 
a  view  to  buying  other  securities,  which,  since  the  late  panic,  have  ruled  excep* 
tionally  low,  while  Guvernmeni's  had  yieded  (omparatively  little.  Tuc  price 
of  gold  also  has  steadily  declined;  and,  the  quotalious  for  bondn  abroad  haviug 
but  partly  responded  to  the  i educed  premium,  a  fall  in  securities  here  was 
required  to  eqnalizj  the  home  and  foreign  markets. 


OHBOmOLK  AKD    RKVUW,  [NoMmltT, 

Tbe  parcbaMs  or  booda  bj  Ibe  GoTerDTiieDl,  daring  tbe  mooth  tggitgated 
«1 0,000,000. 


SIOM 


The  daily  cloaiog  prices  or  tbe  principal  GoTerDmeut  Becnrilies  tt  the  Ne« 
Tork  Stock  Bichaoge  Board  m  the  month  of  October,  as  repreKoted  b; 
tbe  Ifttest  Bale  official!;  reported,  are  sbown  in  the  roilowiDg  EtAtemeot : 


SbtoI  ,-«'■. IBSl.-^. -«"■,  (MDTn.>OaBpon ^ri,»«. 

moMh.  Coup.    R«-  ISU.  ISM      ISGS.  diw.  '«.  't^     Cjm. 

1 iibS  n»  ISO  iww  ii«J(  iiT«  118«  "»X  MW 

S 118       Illl)f  119li    IIIJK  ItTH  IflH  

* IIUS     11»«  ■---      3l»M  in«  IITK  IITX   MW 

B 119K  iiex  119K  iiax  111  li'JH  I'.iw  UT;f  HW 

« ll»i(    IISK  l:8X    IITK  inx  ...  .   !08X 

7 IISK     I19X  ItSM    119M  11TX  ItBM  !<• 

8 UO;U    lUK  ■-  --    1«)  IIBK  118V  111K    MX 

B.  DhX  1I9M    UO  lU  llSit  KBX 

11 11I»    IIVX  WM  lis  1IS3«  lU      im( 

11...     llflK     IW  11BK  IITX  lis  11EK    

U  „ IIBX    110  IIBW    1]B>^  lis  lUW  ■    ■     VKt 

li iifi»   »w  nvx  iiiK  iii»  iiT»  iiT>;  UB)^ 

IB 11»X    TO  1»X  1I7»  in«  in      MMi 

M 118M  inx  ma  utx  mS 

18 11»K   UtH  llOK  itSK  liH  ll^X  •   1W( 

18 ll»K  IIOJ*  imx  ■■ 

10 11«X    ll^K  130K  USX    IISM  US  lis  lltK    UK]< 

U 11"K    1W«  lUJi  inX  IHK  UIX    .— 

ft 11»X    1»  '»'  UBM    1*»  1"X  J""" 


M Ittil  lllK  IWX  118K  119X  llT!i<  I'.IX  irsi 

BI 11>K  ll^X  U»S  HSM  119K  UTM  inx  lUK    i 

W 1I»«  mx  11»K  ll^X  IlBX  1-.6J(  lltfi  ll»x    1 

tt „ IW        IWX  117  US  USji  l;»)t  1 

80. 119X    USX  UTj;  I18«  116X  116)i  llSJi    . 


.  UBX    119  ItO  IIVX  119K  IITK    IIFK  lUX    IW 

.  lUU    1K>  ISl  I19M  IK)  118X    USX  ]1H><    lOHi 

.  UH     UBM  i»x  u'  111  iiB»  iisM  lUM  mx 

.  UlX    119X  >1>X  1I1X  UOX  IIDX    UBX  U«X    lOTX 


The  stock  market  bu  been  cbaracteriisd  by  a  dull  oaatioiu  moTeneDt' 
tboDgb  with  a  gradosl  improTemeot  ia  prioea,  and  a  iteady  recovrr;  ot  con- 
fidence.   Tlie  earoiogi  Ot  tbe  roads  wbioh  report  paUiel;  Utdr  reoeipta  ban 


1869]  OOMlfSRCIAL    OUROSIGLB   AKD    RETIEW^  805 

not  been  each  aa  to  pnconrage  a  BangniDe  specalatioa ;  which  may  partly  accoaot 
for  t^  e  fact,  that  prices  are  far  frcm  having  recovered  the  figures  from  wi.icb 
they  declined  in  September,  and  rale  still  much  below  the  averag?.  Tbe  except 
tiooaliF  low  raof^s  of  prices  appears  to  havp  eDCOoraged  a  certain  am^uot  of 
baying  for  inrestment,  and,  as  a  nil<>,  stocks  are  now  held  in  strong  hands. 
Speculation  has  been  confin-'d  to  encoaraging  temporary  flaetaations  of  2(g^3 
per  cent,  rather  thjo  promoting  a  direct  movement  for  either  a  rise  or  a  fall. 

BTOCIfl  SOLD  AT  THS  2VKW  TORK  BTOOS  IZOHASIOB  BOARD. 

ClABBea.  1868.  1869.  Increase.  Dec. 

Bank  shares •^....  2,883  767  1.6i6 

Railroad    *»    9,01^44  890,708  1,623  241 

Coal            " 6,209  8,157  8  OSg 

Mining       " 109,159  11,450  .       .  07,7:W 

Improv*nt**    * 19,775  900  18  875 

Telejfraph" 44,.^<  10,107  84,820 

Bteamship"    109,833  12,914  ..  ..  9/919 

Expr'sa&c"   6«,S81  17,918  ...  88,448 

ToUl— October..... a,8624087        447,911  .....       1,914,116 

Slice  Jannar/l .  16,906,045     9,877,766  ...  .       7,028,369 

The  followioff  table  will  show  ^he  opening,  highest,  lowest  and  closing  prices 
o>  all  the  railway  and  miscellaneoos  securities  eold  at  the  New  York  Btock 
Kxcbange  daring  the  months  of  £3eplemb?r  and  October,  1869  : 

, — -September— —s  <      ■  October-^  y 

Railroad  Stocks^                                  Open.  bigb.  Low.  Clos.  Open,  liigb.  Low.  CIos. 

Alton  &  Terre Hant. 80  8)tf  80  82 

**             "         *•     pre! 69        69  54  64  66  60  66  69 

Bofl'03,  Hirtford  ASrio ....  18  IS  17  17*^ 

Chicago&AUon 154>^    154^  135  145  146  146  1S5K  Ub 

do            do    pref. 156       166  185  185  144  147  136>^  147 

Chicago,  Bnrl.&Qnincy .^^....  170       170  160  165  166  165  15»W  159V 

do        A  Northweet'n 84^      86X      68  70|i  71?^  I^S,  69k  692 

do                    do  pref 94^      95         79  85  &4X  85;^  8:^3^  84? 

do        AKocklsland 115       llS>i  102  106^  109J^  110  118^  103!^ 

Colnmb.,Chic.A;lnd.  G 88X      81  ItAH  25  S6X  ^H  22  26)2 

Clevo.  &  Pittsbarg IO14       112         82  98  96  104  h63^  96% 

do    Col.,Cin.  &Ind 78         79         73  74K  74Jtf  78  7S!i  78 

Del.,  Lack  &  Western... 112,*^    118  105^  lf5X  liO  111  109  lU 

Dabaqne  &  Sioux  city Ill       111  104  1m5  108  110  lOS  lOSI^ 

Brie 87         42         37  82  i8X  84^  29V  80 

do  preferred -  .     70         71  67^  67^  68  hd^  64  54 

Harlem 160       1«0  12J  127  135  149;^  12'«)4'  l4S3<f 

UannibalA  St  Joseph 125       126        »2  107  110  lU  1U5>^  lOhS 

do                 do   pref 128       )28         97  97  11  111  iQ^j  io9iJ 

HadsonRiver * 18fl>i    18ti?i  184  164^    16liir  174)^  156V  173 

Illnols  Central   189       139^  134  181  187  l^  132  139 

Jo.iet  A  Cbica fo ....  92X  92)^  «2X      9l3tf 

L4keSho.AMicb.!JoaUi 10^       106^     76V  82J^      85  94W  oiv      9i>^ 

Mar.  &Cincin.,lBt 20        20  .      20  20         20  20         18         18 

"        2d     "     8>i      8V          8  8  ....  

Mlctlfran  Central 12m       lU  118  118  122  124  119  122 

31tlwanftee&»i.  Paul n^Si      i^X      61  b8         6S^  70  «33x'      671^ 

»l.i                 do  pref. 87X     83ii     75  60        b\%  aS"^      7y>;      to 

MorritfAEBsex 8s        asj^     H73i  -0        ^^7  b8V  8<>i^       88 

»ew  Jersey 128)tf    18V  1*)  I*)  117)^  190  il7W  120 

do       cc-ii-rti 10  >i  ima    j*7     10     lua     loa      mv    95 

NewHaTen&Uartfjrd i82       232       232  232  7.. 

>ew  York  Central S03Ji    206Ji    153  ItWJi  173       195       171X    198>tf 

do         AN.Havtn 140       140       135  I'lO  128       140       1  >5        140 

do  do     scrip l.-ft)       130        180  180  130       131        180        ISOj^ 

Norwich  &  Worcester 112       113       112  112  

Ohio  A  Mississippi 82^      82X      21         26^     ^IH     ^%,      26         26 

do  do       pref. 70        70        ';o        70 

Panama 240       251       310  250  940       240       i^OO       SIO 

Pitts.,  F.  W.  A  Chi.  guar 83;»      S'JX      5*33/      t56M 

Beadlnff     97><      ffT\^     01         Oi^     98>i      97        93         9634 

Home.  W. & ORdensb's: 106     lio      106  109  ,, 

Third  Arenne 185      ISS       1S6  185  1973^    Vn}(    197^    1973tf 

Toledo,  Wab.A  Western 83>i      83>tf     60         65X      G9.V      67         65         61 

do        do         dopiel 83        88         80         90        78        80         763<      78 

Miaceilaneooa— 

AmericanCoal 40        40        40        40        40        40        40        40 

CentralCosl 60        00        fO         60  

Oamberland  Coal 8i3C     813^     28        28        27        89        303^     37'^ 

PennAvlvania  Coal S'M       250       320       330' 

Del.  A  Hnd.  Oanal 1263<    126       132  123  120       124       120       122 

AiUnticMail SVjtf     293^     29X     ^^H     


A9G  COUHERCIAL  CHHORICLK  AND  BSTIBIT.  [^OtmhtT, 

E»CiaeM«ll M        BOX  W«      ««  OX  «X  MX  OX 

BoBWDWatcri Direr IS^      IS  11         IS  1(  Ux  is  M 

UrnDiwlckLllfLud tx  W      (X  *X 

CltlluD H         ■'«  EO        H  n  H           H  BX 

Harlpou S         lOX       S          11  S  Hi       t  » 

ia       praL HX     »  ItX      14  IBX  »  1*  W 

<Jnfek-rrer !BX     isx  1»        1«  li  is  11  MX 


Hmt.UDionTelotinph SIX      e>» 

"'" Oi' '■•       •"'■       ■ 

a  M.  CalOD,., 


CHii.mO.- JBO       I6U       ISO       IM         

B»nllEr**  Broke™  A.3 IM       IM       IM 


-  - BBX  BTX  MX  MX  B»X     B8X  MX     « 

Ual(vd»Uleg 4>:l  OS  GO  BO  BOX      N  flX    M( 

McrtliBnl.'*  Union IIX  tlx  H  H  

Welle,  FuicoACo IS  IS  IS  II  18         MX  IT       MK 

'Hie  t'lld  market  has  prrsented  k  remsrlcable  freedom  fhim  BpccQUltTe  moTe- 
Di  n  H  Tlie  nhoieaome  les^oos  of  tbe  pflaic  of  September  24lh  appean  to  htxe 
tnaiti-  a  derp  iniprrBitan  oi  llio  k^'*'  openito  t ;  to  mucb  go,  tliat  il  baa  ten 
iDunil  imposeitile  ILas  fur,  lo  tsteblUb,  io  lonnectiOD  with  tite  Uold  Eiciunjie, 
hd;  urrungemfD  b  'or  citarii  g  Itie  imn^actiODg  of  dealers,  tboee  lactlil^  haiiag 
in  ilie  putt  vw;  mBteriallf  euulribo^ed  to  tbe  activity  of  specalatioa  acd  to  im»- 
poniibli!  pjriiee  t'lkiny  tar^e  ri-k.a.  Tbe  pcneral  teDdency  of  ibe  maiktt  hu 
beeu  dowuward ;  tbe  dccl  on  bavioi;  been  dae  lo  tbe  aoticipatioo  of  ibe  eapp'r 
comioK  from  the  November  in tt rest  pajmenlg,  to  Ibe  sale  of  $li.UIO,t;W)of 
(told  by  Iho  'I'd neary,  and  to  a  (rroninr  leelinjc  tbat  the  improv jog  coaditioD  of 
thi;  public  lirBDCta  and  tbe  abandaDce  of  Ibe  ezportab  e  crops  warraDt  Ibe 
eiTKClaiioo  I'f  a  lower  premiDOi.    'I'he  exports  of  specie  for  the  moDth  ban  beta 


Forei/ii  cxcbautte  bas  bern  coinpjretiTrl;  sle^dj.  Impartera  hare  bem  Iret 
buj-ers  of  bill',  bat  tbe  supply  baa  beeu  nell  suHtaioed  by  ti  e  liberal  exports  of 
cotton  aid  ){rdin. 

oonasB  or  roBnan  axonutsi  (BO  ditb)  at  fkv  tork. 

London.  Parla.       Am«tfird*m.  Bremen.    Hambnrg.      BoU" 


Dajf. 

IB? 

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WEBSTER'S  STSTEU  OF  SPELUNS  AMD    DEFliri.VS, 

he  8'Bndard  nithority  in  nil  (cli"ols  id  the  tJnitoH    Stalei,   in  apetljoy  4.id 
pmnuDciBtioni-tbelsleptreTisfd  edition   of  Wft.alet'i  DictioiHry.     At  a  t«7 


n  the  cstahliBbmeul  oT  oar  common  rchools  \Veb<-t^i 
the'sloiost  DoiverMl  firnt  Iwson  ^"1^".^  ''^^  7°,""?  mir.d.  and  th  artill  hold; 

'■■y  for  ihecoT 


the  schools  of  theconnlry.tbnsineTilabtj  pavii>g  the  • 
Bitinn  of  Ihe  ijstein  of  Ppellin^  and  definioff  a>  ifjvea  kj  w/b.tie 
Dictionariw,  «nd  we  ire  therefore  not  aslooisliei  to  be  told  thut  tbe  ule  of  IbCM 
ia  r,e  ilr  ten  times  oBC'^rtt  as  thitot  all  other  diclionari4>R  <•  iinbined  looHerlo 
tdiilfr  ihe  utiobri<igede<iilion  of  Ibis  work  Btm^lwonhy  cooipanion  of  ihesch^iltr 
and  Btodeot  IheMinrs.  Mernam,  the  publieher^,  have  sp-ired  no  expcase  ia  proeir- 
iiig  the  tertic«8  of  the  most  able  liDpoUls  and  philoIoKJau  nf  the  prment  tim'  to 
coinjileiely  revise  thB  ediUon  now  (ffered  lo  the  pubMc.  It  c  iot«ins  cooe  iw 
inillioM  mre  ems  of  printed  mat'er  Ifcon  any  other  dictioQ^ry  pablufaed  in  tMs 
coutitry,  aod  m  bclire  it  tbe  mofit  compiete  woik  or  reference  ever  prodaeed 


f  I* 


V  il  K 


ERCllANTS'    MAGAZIVE. 


AMD 


COMMERCIAL     REVIEW' 


DECEMBER,     186  9. 


— ■  ^1  ■ '■' M 'x->rir^i'VM~»^r"w-M^r»_»w*ri_r\rM"»J^ 


THE  SUEZ  CANAL. 

The  paissage  of  the  grand  naval  procession  from  the  Mediterranean  to 
the  Red  Sea,  which  sailed  from  Port  Said  on  the  10th  of  Novemher,  and 
reached  Suez  on  the  2l8t,  ended  the  imposing  ceremonies  that  cele- 
bralo<l  the  formal  opening  of  the  Suez  Canal  to  the  commerce  of 
the  world.  The  completion  of  this  great  work,  accomplished  in 
the  comparatively  short  period  of  ten  years,  is  another  of  the 
many  important  events  characterizing  the  high  and  progressive  civili* 
zation  of  the  present  century.  Although  it  is  I'robable  that  the  difficulties 
overcome  in  the  construction  of  the  canal,  as  well  as  its  value  when 
finished  bs  a  direct  channel  for  the  great  and  increasing  trade  between 
Europe  and  the  East,  have  been  exaggerated  in  the  one  instance  and  over- 
estimated  in  the  other;  it  cannot  be  denied  that,  to  the  enterprise  of  M. 
de  Lesseps  and  the  French  capitalists  who  contributed  the  greater  part 
of  the  $55,000,000  expended,  the  civilized  world  is  indebted  for  one  of 
tbo  grandest  achievements  of  modern  engineering  science.    It  will  be- 

1 


400  TBS  SUEZ  OAFAU  [Dtctmher, 

remembered  that,  during  the  progress  of  the  work,  the  general  tone 
of  the  European  and  American  press  wad  one  of  incredulitj  as  to  the  sik- 
cess  of  the  enterprise.  Among  the  many  objections  advanced,  it  vti 
confidently  asserted  that,  even  if  it  were  possible  to  cat  a  canal  across  the 
Isthmus,  the  shifting  sand  of  the  des/rt  would  fill  it  up  more  rapidly  thaa 
the  dredging  machines  could  clear  the  channel.  No  sooner  was  the  ^iiuul 
actually  finished,  however,  than  the  former  disbelievers  rushed  to  the 
opposite  extreme  of  unlimited  credulity.  Not  only  did  they  accept  the 
fact  of  its  successful  completion,  but  they  at  once  decided  that  the  eoii- 
merce  of  the  East,  which  had  formerly  followed  the  less  direct  routes 
by  way  of  one  or  the  other  of  the  Southern  ContiDental  Capes,  must 
henceforth  flow  exclusively  through  the  new  channel  opened  for  it  hy 
way  of  the  Isthmus  of  Suez.  It  is  evident  that  this  estimate  of  the  resolts 
which  are  to  follow  the  opening  of  the  canal  is  extravagant,  even  though 
the  sanguine  predictions  of  M.  de  Lesseps  ai<d  his  friends  may  not  wholij 
fail  of  ultimate  realization.  4 

The  isthmus  of  Suez  is,  as  our  readers  are  aware,  seventy-five  mila 
broad,  and  eeparates  the  Red  and  Mediterranean  Seas,  barring  the  rovi 
to  the  goal  of  Columbus,  and,  in  consequence,  opening  in^ast  centuries 
a  New  World  and  a  new  passage  to  the  euterprise  of  the  Old.    It  is 
almost  level  with  the  adjoining  seas,  having  a  general  depression  to  the 
Mediterranean.    Its  average  elevation  is  from  five  to  eight  feet  above  the 
sea  level,  although,  in  the  case  of  two  hillocks,  it  rises  to  heights  of 
thirty  and  forty  feet.    Indeed,  it  is  more  than  probable  that  the  seas  once 
flowed  across  this  bar.    At  the  present  day  there  are  several  salt  lakes 
and    swamps    which    have    been    used    in    the    construction    of  the 
canal.    The  land  of  the  isthmus  is  natural  sterile,  and  wanting  in  fresb 
water.    It  has  long  been  an  object  to  the  rulers  of  the  adjacent  territory 
to  cut  a  canal  from  the  Mediterranean  to   the  Bed   Sea.     It  his  bees 
frequently  attempted,  and  more  tl  an  once  v^ith  success.    Some  I'istori^n^ 
attribute  the  earliest  attempt  to  S:;sostris.    The  ancient  Egyptian  can:il 
did  not  pass  in  a  line  across  ihe  isthmus  as  in  the  present  case.    The 
waters  of  the  Nile  were  divided  into  two  branches,  one  flowing  nortii- 
ward  to  Lake  Timsah,  and  the  other  southward,  through  the  Bitter  Lakes 
to  the  Red  Sea,  near  Suez.     They  sailed  on  the  Nile  fo  far  as  it  was 
navigable,  and  when  it  ceased  to  be  so  they  cut  a  canal,  filling  it  with  water 
from  the  river,  which  debouched  into  the  Red  Sea,  near  the  present  Suki, 
This  line  thus  had  four  Eections,  92^  miles  in  length — 1.^  miles  from 
Suez  to  the  Bitter  Lakes,  27  miles  through  these  lakes,  40  from  the  Ukes 
to  £1  Ouady  (of  Tomat),  and  12  miles  f'-om  £1  Ouady  to  Bubaslia,  then 
one  of  the  principal  branches  of  the  Nile.    The  vestiges  of  the  old  caa^i 
show  a  breadth  of  from  100  to  200  feet. 


1869]  THS  SUEZ  OAHAt.  401 

THE  BARLT  HISTORY  OF  THE  SUEZ  OAKAL. 

The  pamphlet  of  M.  de  Lesseps,  recently  published  in  Paris,  and 
entitied  Eg^pte  tt  Tur^uie,  contains  valuable  information  in  reference  to 
the  historical  antecedents  of  the  Suez  Canal.  In  discussing  this  point  we 
shall  principally  rely  on  bis  authorities.  It  is  known  that,  in  the  most 
ancient  times,  in  default  of  a  canal  directly  connecting  the  Red  Sea  and 
the  Mediterranean,  of  which  the  imperfect  state  of  engineering  science  in 
those  days  prevented  the  execution,  there  existed  a  vast  canal  which 
united  the  Red  Sea  with  the  Niie.  This  canal,  undertaken,  in  the  first 
place,  by  Nechos,  the  son  of  Psameticus,  630,  B.  O.,  or  perhaps  by  his 
predecessors,  was  finished  by  Darius,  the  son  of  Hystaspe.  Half  a  cen- 
tury after  Darius,  Herodotus  stated  that  this  canal  was  four  days'  j  turney 
in  length,  and  of  a  width  sufficient  to  admit  the  passage  of  two  triremes 
abreast  It  commenced  at  Bubas^e  on  the  Nile,  following  at  first  an 
easterly  direction,  then  diverging  to  the  south,  and  finally  entering  the 
Red  Sea  at  Patymos.  The  Ptolemys  kept  the  canal  in  constant  repair, 
and  added  considerable  impro?ements  to  the  great  work.  Strabo,  who 
travelled  in  Egypt  fifty  years  before  the  Christian  era,  beheld  this  canal 
covered  with  ships.  The  Roman  Emperors,  Trajan  and  Adrian  especially, 
greatly  enlarged  and  extended  the  canal.  When  the  Musselmans  effected 
the  conquest  of  Egypt,  the  canal  had  been  abandoned,  but  the  Cniiphs, 
comprehending  how  necessary  it  was  to  renew  the  work,  in  the  interest  of 
the  holy  cities  Mecca  and  Medina,  soon  caused  the  reconstruction  of  the 
canal,  and  it  was  subsequently  styled  *'  Oanal  of  the  Prince  of  the  Faith- 
ful." 

The  Arab  historians  in  detailing  the  work  of  reconstiuction,  give  a 
curious  mythical  account  of  the  inception  of  the  work.  The  following  is 
an  extract  from  the  Arabio  chronicle  of  El  Mikrizy  :  **  This  canal  was 
hollowed  out  by  an  pncient  king  of  Egypt  for  Agar,  the  mother  of  Ishmael 
while  she  dwelt  in  Mecca.  In  the  continuation  of  days  it  was  hollowed 
a  second  time  by  one  of  the  Greek  kings  who  reigned  in  Egypt  after  the 
death  of  Alexander.  When  the  Most  High  bestowed  Islamism  upon 
mankind*  and  Arorou-ben-el-A'ss  made  the  conquest  of  Egypt,  this  Gene^ 
ral,  following  the  instructions  of  Omar-ben-el-Kbathathab,  provided  for 
the  reconstruction  of  the  canal  in  the  year  of  the  pestilence.  He  con 
ducted  it  to  the  Sea  of  Eolzoum,  from  whence  vessels  sailed  to  Hedjaz, 
Yemen  and  India.  In  the  year  when  Mohamm^'d-ben  Hagan  revolted 
in  the  City  of  the  Prophet  (Medina)  against  Abou-Djaf%r,  then  Caliph 
of  Irak,  the  latter  sent  orders  to  his  lieutenant  in  Egypt  directing  him  to 
fill  up  the  canal  that  it  might  not  be  used  for  the  transportation  of  pro- 
visions to  the  iilsurgentB  in  Medina.    His  order  was  accordingly  carried 


402  TBS  BI3XZ  CAKAU  jl^ftfitier, 

out;  and  Aomir.iinicatioQ  stopped  i»illi  the  Sea  of  Kolzonm.    In  tiiU 
coodition  tbe  canal  has  remained  to  ibis  da}'.** 

In  reference  to  the  reconstruction  of  the  canal  by  Amron-beo  el-A^is 
the  following  account  is  given  bj  tlie  Arab  geographer  Alfergan :  "^  Tbe 
river  Trajao,  which  passes  from  Egypt  to  Babylon,  aa  was  stated  bj 
Ptolen>yy  is  the  same  that  subsequently  named  the  "  Canal  of  the  Cooh 
mander  of  the  Faithful/^  and  which  flows  by  Cairo.  For  Omar,  as  is 
state-*  in  the  history  of  the  Egyptian  war,  ordered  that  the  canal. should 
be  reopened  to  effect  the  transportation  of  food  to  Medina  and  Mecei, 
which  were  then  desolated  by  famine.  The  Caliph's  letter  to  Amrou  «» 
as  follows :  ^  To  the  rebel  son  of  a  rebel — ^Whilst  tfaou  and  thy  compsn- 
ions  are  fattening  yourselves,  you  care  nothing  that  I  and  mine  are  daily 
getting  leaner.  At  once  give  succour  to  us.'  Amrou  replied :  *  I  am 
thine.  I  will  send  thee  a  train  of  beasts  of  which  the  first  shall  be  with 
thee  ere  the  last  has  set  out.  Beiidef  I  hope  to  flAd  another  mode  fsj 
iransporiatton  by  eea*  But  immediately  Amrou  repented  that  he  had 
given  this  hint ;  because  somebody  made  tbe  observation  to  him  that  it 
would  be  possible  to  devastate  E^ypt  and  speedily  transfer  tbe  spoils  to 
Medina.  Accordingly  he  wrote  directly  afterwards  to  tbe  Caliph,  to  stats 
that  ho  had  reflected  upon  the  transportation  by  <ea,  and  had  found  insor- 
mountable  diflSculties  in  the  way  of  the  work.  Omar  replied ;  **I  hsTS 
received  the  letter  in  which  thou  seekest  to  elude  the  execution  of  the 
project  conceived  in  the  preceding.  I  swear  by  the  Almighty  either  that 
thou  shalt  execute  it,  or  that  I  will  drive  thee  out  by  the  ears,  and  5fn4 
one  in  thy  place  who  will  accomplish  it."  Amrou  saw  at  once  that  he 
had  blundered,  so  he  began  work  directly  upon  the  canal.  Omar  enjoioed 
him  not  to  neglect  sending  comestibles,  clothing,  lentils,  onions,  and  cattls 
— in  a  word,  all  that  Egypt  produced.  Eikendi  states  that  the  canal  was 
hollowed  out  in  the  year  23  of  the  Hfgira,  which  corresponds  with  the 
vear  €43  of  the  Christian  era.  It  was  finished  in  dx  naonths,  so  that 
vessels  could  pass  through  it  and  proceed  to  Hedjaz." 

In  M.  deTotl'a  Memoriee  sur  Ue  Turcs  occurs  the  following :  ''Tbe 
late  Sultan  Mustapha  felt  uncommon  interest  in  the  project  for  tonneetiDg 
the  two  seas  by  means  of  a  canal  accross  the  Isthmus  of  Sues.  In  addi^ 
tion  to  the  infciraation  that  I  had  upon  the  subject,  he  wished  to  know  all 
that  had  been  ascertained  by  the  different  commissions  that  had  been  is 
Egypt.  If  Mustapha  had  lived  long  enough  to  undertake  this  work  he 
would  have  found  upon  tbe  spot  facilities  enabling  him  to  cany  out  the 
greatest  revolution  of  which  the  political  situation  was  snsoeptibk.  Thb 
Sultan,  whose  mind  was  bcoomiogmuoh  enlightened,  caused  me  to  noder 
take  a  work  explanatory  of  this  important  object,  which  he  proposed  to 
execute  as  soon  as  peace  was  established.    Of  all  ths  different  pahfo 


1869]  TRS  BUB2  OAHAL.  40l 

works  wbich  have  made  Egypt  illustrious,  the  oanal  of  oommonioation 
between  the  Red  Sea  and  the  Mediterranean  would  merit  the  first  place  in 
point  of  rank,  if,  indeed,  the  efforts  of  genius  on  behalf  of  public  utility 
were  duly  seconded  by  the  generations  destined  to  enjoy  them ;  and  if  the 
foundations  of  social  weal  could  acquire  the  iBame  solidity  as  the  prejudices 
which  tend  to  destroy  it.  There  lies  the  abridgement  of  all  history ;  it 
affords  constantly  the  same  tableau ;  it  is  that  of  all  nations,  of  all  ages. 
Without  these  continual  destructions,  the  happiest  position  would  have 
dictated  immutable  laws ;  and  the  Canal  of  the  Red  Sea  had  been  con- 
stantly the  basis  of  the  public  right  of  nations.*' 

Napoleon   appeared    •T>»i    n.     soil  which  had  been  trod  by  Sesostris, 
Alexander  and  Caesar.    Hardly  had  be  arrived  in  Egypt  when  he  hastened 
to  Suez  to   determine  whether  he   could   recommence   the  work  of  the 
Pharaohs — the  work  continued  by  the  Greeks  and  the  Romans.     On  the 
24th  of  December,  1798,  he  reached  Cairo,  and,  on  the  80th,  accompanied 
by  his   illustrious   comrades,  B-rthier,  Caffarelli,  Gantheaume,  Monge, 
Berth ollet,  and  Cost^nz,  he  rediscovered  the  vestiges  of  the  ancient  canal. 
Napoleon  tracked  them  upwards  of  five  leagues  ;  then,  after  visiting  the 
fountams  of  Mose?,  Le  returned  to  Cairo  by  the  Wady-Toumiiat,  and  in- 
spected near  Baalbec,  on  January  8,  1 709,  the   other  extremity  of  the 
canal  of  the  Pharaohs.     He  ordered   a   clever  engineer,  M.  Lepere,  to 
prepare  a    nremoir  upon   communication  between  the  Mediterranean  and 
the  Rt'd  Sea.    The  canal  which  M.  Lepare  proposed  was   no  other   than 
the  ancieni  canal ;  and  according  to  his  calculations  the  work  would  not 
cost  abore  twenty- five  or  thirty'  millions  of  francs.     The  commencement 
of  the  canal  was,  as  foimerly,  to  be  at  Bub:^ste,  on  the  Nile;  its  direction 
was  by  Wady-Toumilat   townrds  L'tko  Timsah,    thence   turning  to   the 
South  it   descended  towards  Suez.     Always   the   thought   predominated 
that  it  must  be  a  cinul   destined  solely  to  unite   the  Nile  wiih   the  Red 
Sea.    Yet,  by  the  side  of  this  principal  thouglit  were  seen  traces  of  another 
— the  true  one — whicb,  however,  regained  in/econde.     After  an  examina- 
tion of  the  localities,  the  clever  engineer  could  not  hinder  himself  from  per- 
ceiving the  facilities  which  nature  aff>rded  for  the  construction  of  a  canal 
which    would  place   Suez  and  Pt^uze   in    direct   communication.     That 
would  indeed  have  been  the  canal  dividing  the  isthmus,  and  which  alone 
would  open  the  grand  maritime  route  rt'claimed  by  commerce  and  civiiiza* 
lion.     But  two    considerations  prevented  Napoleon    from  welcoming  the 
idea.     He  helieved,  in  the  absence  of  profound  political  and  strategetical 
studies  which  bad   not  yet   been    made,  that   it  would  be    impossible  to 
maintain  the  ports  in  the  extremity  of  the  line  of  navigation.    The  recent 
labors   of  the  International  Scientific  Cam  mission  have  peremptorily  de* 
monstrated  tiiat,  thanks  to  the  perfect  apparatus  uow  at  the  disposal  of 


404  TBR  SUEZ  CANAL*  [DKOllcr, 

the  engineer,  the  difficulties  of  which  were  formerly  dreaded  exist  no 
Ioniser.  Upoi  this  point,  however,  ilia  well  to  quote  M.  Lepere^a  own 
worda.  Hid  opinion  in  regard  to  the  direct  cutting  of  the  isthmus  is  ei- 
pressed  as  ibllows : — '*  In  this  project  of  the  Suez  Canal  we  have  expressly 
recommended  the  choice  of  the  ancient  route  by  the  interior  of  the  D  lu 
towards  Alexandria,  upon  commercial  consideratioss  partictularlj  referring 
to  £^y:t,  and  because  on  the  side  towards  Peluze  it  does  not  appear  feas- 
ible to  maintain  a  permanent  maritime  establishment.  Nevertheless,  ab- 
stracting these  considerations,  it  would  be  easy  to  open  a  direct  oommuni* 
cation  between  Suez,  the  Bitter  Like,  the  Ris  el-M<>yeh,  prolonged  upon 
the  eastern  border  of  Like  Menzalieh  to  the  sea  townr.U  Peluz*.  We 
think  that  a  canal  opened  in  this  direction  would  present  advanta^o 
which  the  interior  canal  does  not  afford.  The  navig^tioD  would  be  con- 
stantly open,  and  not  subject  to  the  alternate  risiai;  and  falling  of  tbe 
Nile.  In  such  a  canal,  too,  it  would  be  ea^y  to  attain  a  much  greiter 
depth.  I  would  add  that,  if  I  did  not  see  several  difficulties  in  reg'tnl  to 
digging  out  and  keeping  clear  the  channel  to  a  sufficient  depth  between 
Suez  and  the  roadstead  [the  force  of  steam  machinery  was  not  titeit  no- 
derstood],  I  should  propose  a  direct  communication,  for  tbe  use  of  large 
ships,  between  the  two  seas  tlm  ugh  the  ii>ihmus."  Napoleon,  on  liis 
return  to  France,  received  from  M.  L^pere^  in  presence  of  the  members  of 
the  Institute  of  Egypt,  the  Memoir  on  the  Cannl  of  the  Ttoo  Seas,  from 
which  the  above  extracts  are  taken.  And  the  £  nperor  then  pronoun  *ed 
the  following  prophetic  wods:  "It  is  a  big  tiling.  11  iwever,  I  am  not 
able  to  accomplish  it  But  the  Turkish  government  wilt  one  day  Hud  ils 
conservation  and  its  ^lory  in  the  execution  of  this  pruji^ct.*'  So  fi«r  nboai 
the  predecessors  of  M.  de  Les^seps  as  told  by  himself.  Let  as  Si-e  rtov 
what  he  has  done  as  it  is  told  by  others. 

From  the  days  of  Napoleon  to  the  present  the  project  which  be  so 
much  favored  has  not  been  lost  sight  of.  Its  present  success — wb.itev^r 
time  will  prove  that  to  be — is  mainly  due  to  Viomte  Ftrrdinand  de 
Lesseps,  the  eminent  French  engineer.  M  de  Lesseps  was  iKim  si 
Versailles  in  I8O0,  aod  at  the  age  of  23  wa'i  emfdoyed  in  the  con^^ulsr 
service  of  France  at  Lisbon.  Ilis  father  was  for  a  long  time  attached  to 
the  French  'sonsulate  at  Alexandria.  Here  de  Lesseps  p  it  attained  i^resl 
influence  over  Mehemet  Ali  and  the  Turkish  authorities;  indeed,  tbe 
recognition  of  Mehemit  Aji  as  Viceroy  of  E^ypt  is  oflen  attribufed  to 
the  personMl  interference  of'M.  de  Lesseps  wiih  the  Sultan.  The  intiiDNCj 
of  the  fathers  lead  also  to  an  intimncy  between  the  sons.  Youns;  d« 
Lesseps,  after  his  itromotion  from  Lis^bon,  held  various  consular  po^ili^^ 
in  the  Etst,  and  was  afterwards  transferred  to  Barcelona,  where,  during  s 
political  disturbance,  he  displayed  great  energy,  tact,  and  ability.    In  1654 


1860]  THK  8UXZ   CANAL.  405 

he  visited  Mebemet  Said,  who  had  succeded  to  the  viceroyalty.  At  this 
time  he  broached  formally  his  idea  of  the  Suez  Ship  Oanal.  At  the 
request  of  Said  Pachn  he  drew  up  a  memoir,  entitled  " Percement  de 
risthme  de  Suez  Expose,  et  Documents  Officiel."  M.  de  Lesseps,  in  con- 
sequence, received  in  1854  a  (irman  sanctioning  the  enterprisei  and  a 
letter  of  concession  in  ]  859.  The  Viceroy  offered  very  liberal  terms, 
taking  a  large  share  in  the  company,  making  valuable  concessions  of  land, 
and  permitting  the  employment  of  the  native  workmen. 

M.  de  Lesseps  prMposed  to  dig  a  canal  90  miles  long,  830  feet  wide  at 
water  line,  sloping  at  the  sides  to  the  bottom,  which  was  to  be  20  feet 
below  the  low  water  level  of  the  Mediterranean.  There  were  to  be  at 
each  end  sluice  locks  330  feet  long  by  70  feel  wide.  By  using  the  tides, 
it  was  hoped  that  an  additional  depth  of  three  to  four  feet  might  be 
gained.  As  no  ship  could  enter  it  from  the  sea,  unless  the  mouths  were 
protected  from  the  sands  and  shoals,  the  greatef^t  difficulty  of  the  work 
was  anticipated  in  the  artificial  harbors  necessary  at  each  end.  At  Suez, 
the  piers  had  to  be  brought  out  three  miles  through  shifting  sands;  the 
stone,  however,  could  be  found  near  at  hand.  The  harbor  on  the  Mediter- 
ranean side,  near  Tyneh,  or  Pelusium,  was  more  costly  and  difficult.  The 
Nile  annually  pours  into  the  Mediterranean  13,000,000  cubic  yards  of  sand 
and  mud,  which  are  borne  by  a  strong  ocean  current  to  the  neighborhood 
of  Tyneh,  making  that  coast  shallower  and  more  dangerous  each  year.  In 
M.  Lepere's  report,  the  opinion  was  expressed  that  the  Red  Sea  was  thirty 
feet  higher  than  the  M'^diterranean,  but  the  surveys  of  M.  Boardaloue  in 
1866  fiom  Suez  to  Tyneh,  and  from  Tyneh  to  Suez  demonstrated  that 
hardly  any  difference  of  level  existed.  Nevertheless,  men  like  George 
Stephenson,  who  should  have  known  that  with  time,  money,  and  labor  no 
engineering  work  is  impossible,  threw  cold  wattfr  on  the  scheme.  Indeed 
the  English  capitalists  and  diplomats  endeavored  by  every  agency  to 
hinder  the  work,  as  they  saw  in  it  a  political  movement.  M.  de  Lesseps's 
company  was  organized  in  1854.  In  1855  the  Viceroy  had  a  new  survey 
made* 

TBB   INTERNATIONAL   CONGRESS. 

In  that  year,  the  representatives  of  France,  England,  Prussia,  Austria, 
and  Holland  assembled  in  Paris  to  discuss  the  question  in  its  international 
relations.  After  hearing  the  explanations  And  reports  of  M.  de  Lesseps, 
it  ^as  determined  to  send  five  of  their  number  to  Suez  to  examine  the 
work.  Their  report  went  to  sbow  the  entire  feasibility  of  the  scheme. 
1  his  report  made  in  November  and  December,  1866,  was  published  in 
June,  1866.  The  work  of  organizing  the  company  proceeded  until  1858, 
when  La   Compagnie  de  Grand  Canal  Martime  de  Suez  became  a  fact. 


iO%  TBS  SUEZ  oixAu  {Dietmkr^ 

It  raised  a  capital  of  200,000,000  of  francs,  abont  $38,000,000  of  our 
money,  or  £7,760,000  sterliDg.  Sabsequently,  two  other  loana  of 
400,000.000  of  francs  in  the  aggregate  were  raised. 

The  following  are  sab^tanlially  the  terms  of  the  Egyptian  conceauoa: 
The  Egyptian  government  to  have  the  right  of  selecting  the  nuini^;iDg 
director  from  the  largest  stockholders,  if  possible ;  the  oonoession  to  lait 
ninety-nine  years  from  the  opening  of  navigation ;  the  works  to  be  at  the 
expense  of  the  company ;  the  Egyptian  government  conceding  pabJie 
lands  to  defray  the  expense?,  and  undertaking,  if  desirable^  to  bnild  forti- 
fications at  its  own  expenfe ;  the  government  to  receive  annually  15  per 
cent  of  the  earnirg.«,  without  reference  to  dividend  or  interest  to  be 
derived  from  their  shares ;  the  remainder  of  the  profits  are  to  be  divided, 
75  per  cen^  for  the  general  shareholders,  and  10  per  cent  for  the  origioal 
founders;  the  tariff  (to  be  regulated  by  the  Egyptian  government  and  the 
company)  to  be  the  same  for  all  nations.  Sho  ild  the  company  deem  it 
advisable  to  join  the  Nile  and  the  maritime  canal  by  a  navigable  channel, 
the  land  now  uncultivated  may  be  irrigated  and  cultivated  at  their  own 
expense  and  charge,  the  company  to  have  these  lands  free  of  any  charge 
for  ten  years,  dating  from  the  opening  of  the  canal ;  during  the  remua- 
ing  eighty-nine  years  they  will  pay  one-tenth  of  the  usual  land  tax ;  after 
which,  the  whole  of  the  usual  tax  on  irri;/ated  land  in  Egypt ;  a  plan  of 
all  the  lands  conceded  is  to  be  made ;  the  company  is  to  have  the  tight 
of  quarrying  stone  on  government  lands,  and  of  importing  tools  and 
machinery  and  supplies  for  the  workmen,  free  of  duty ;  at  the  terfniaa- 
Uon  of  the  concessioa  the  Egyptian  government  is  to  be  substituted  is 
lieu  for  the  company. 

In  January,  1856,  it  was  provided  that  **  four-fifths  at  least  of  the 
workmen  should,  in  all  cases,  be  Egyptians."  These  native  workmen,  or 
feiUfhSy  numbered  20,000.  Their  wages  were  one-third  less  than  that  of 
the  European  laborers,  but  still  a  third  more  than  what  was  usually  p»d 
to  ihe/tllafu  in  their  own  country.  It  was  also  agreed  th^t  they  should 
be  provided  with  habitations,  food,  and  medical  assistance,  and  that  while 
in  hospital  they  should  receive  half  their  usual  salary. 

On  the  death  of  Said  Pacha,  the  Sultan  visited  E^ypt,  (Tnd  peraonallj 
examined  the  works.  On  his  return  to  Constantinople  he  published  an 
order  forbidding  the  forced  employment  of  the  fellahs  in  the  work,  tf 
fever  and  exhaustion  had  decimated  them,  and  further  diaagreeiDg  to 
the  land  concessions  made  by  Said  Pacha.  M.  de  Lesseps  protested 
against  this  interference,  whereupon  Ismail  Pacha,  the  present  Khedive, 
sent  to  ParPs  Nuhar  Pacha  to  lay  the  matter  before  the  Direction.  Thej 
refused  to  agree  to  his  demands.  Nubar  Pachn  then  referred  the  matter 
to  the  eminent  French  jurists,  Odillon  Barrot,  Jules  Favre,  and  Da&are. 


1869]  n»  Bvsz  oaval.  40V 

These  recommended  the  company  to  abandon  their  extraordinary  demands,    ' 
and  to  be  satisfied  with  the  terms  offered  by  the  Sublime  Porte. 

The  works  were  delayed  in  their  progress  in  consequence  of  this  dispute^ 
although  large  numbers  of  the  fellahs  engaged  volantarily  in  the  work, 
attracted  by  the  good  wages  and  comfortable  quarters  of  the  workmen* 
The  dispute  having  b^en  referred  to  the  Emperor  of  the  French,  he 
decided  as  follows:  1.  That  the  concessions  of  November,  1854,  and 
January,  1856,  had  the  form  of  contracts  mutually  binding  on  each  party. 
2.  That  as  by  the  withdrawal  of  the  fellah  labor  the  cost  of  the  wotk 
would  be  increased,  the  Viceroy  should  pay  an  indemnity  of  £1,200,000 
sterling  on  that  account.  3.  That  the  company  should  cede  to  the  Viceroy 
their  fresh  water  canals,  reserving  only  the  right;  that  the  Viceroy  should 
pay  £400,000,  representing  the  cost  of  construction  of  the  canals  and 
£240,000  for  the  tolls,  which  the  company  thereby  relinquished.  4.  That 
the  company  should  only  retain  such  lands  along  the  line  of  the  maritime 
canal  as  might  be  necessary  for  the  care  and  maintenance  of  the  said 
canal.  5.  That  the  company  should  cede  to  the  Viceroy  their  title  to  all 
lands  capable  of  cultivation  by  means  of  irrigation  from  the  fresh  water 
canals,  and  for  which  the  Viceroy  should  pay  £1,200,000.  This  last 
grant  made  the  total  indemnification,  £3,360,000  sterling. 

The  canal  passes  through  four  large  natural  lakes.  The  largest  of  these 
is  called  Zae  Amer^  or  the  Bitter  Lake,  and  is  situated  some  ten  miles 
from  Suez.  The  other  lakes  are  Lake  Timsah,  Like  BUIah,  and  Lake 
Menzalleh.  Lake  Timsah  is  the  smallest  of  these,  and  has  been  drying 
up  for  a  long  time.  These  lakes  are  but  ten  or  fifteen  miles  distant  from 
each  other.  The  work  of  thc^  company  consisted  in  deepening  the  cban. 
Del  through  these  lake?,  cutting  a  passage  through  the  intervening  sections, 
and  building  the  harbors  at  Port  Said  and  Suea.  The  land  was  prinoi* 
pally  sandy,  with  occasional  strata  of  calcareous  blue  folate.  The  differ- 
ence of  level,  even  at  the  highest  calculation  is  only  four  inches  in  the 
mile,  so  that  the  current  will  not  be  great.  Whatever  current  there  will 
be,  will  be  broken  by  the  lakes.  The  rate  at  which  tlie  work  on  the  canal 
was  performed  was  remarkable.  The  average  monthly  work  was  1 ,900,000 
cubic  metres.  The  divisions  of  the  Canal  are  four  in  number,  that  of 
Port  Said  or  Lake  Menzalleh,  El  Guisr  (pronounced  El  Gearsh)  Ismalia 
and  Suez.  Ismail ia,  at  the  junction  of  the  freshwater  canal  and  the 
marilime  canal,  divides  the  entire  work  into  nearly  two  equal  parts,  which 
are  subdivided  into  four  partp,  each  having  a  resident  engineer  and  corps 
of  assistants. 

Port  Said  is  the  Mediterranean  entrance  of  the  canal.  It  is  124  miles 
north  of  Alexandria  and  30  miles  north  of  Damieta.  It  is  a  mushroom 
city,  such  as  we  haife  had  on  the  path  of  our  Pacific  railroad.    It  owes  its 


408  TBB  BUJEZ  CAVAL.  [peumkr^ 

origin  to  the  canal,  and  its  name  to  the  first  patron  of  the  vork.  Sad 
Pacba.  It  is  now  a  large  city,  and  promises  to  riral  in  importaoee  sad 
trade  both  Marseilles  and  Alexandria.  The  harbor  of  Port  Said  is  artiBdal, 
and,  as  has  been  intimated,  is  of  maaiive  proportions  to  resist  the  terribls 
inflax  of  sand  and  mad  from  the  Nile.  There  are  two  jetUes,  the  eastera 
and  the  western .  The  length  of  the  western  jetty  is  2,200  metres  or  nearly 
1^  miles;  and  of  the  eastern,  950  metres.  The  width  of  the  month  will 
be  400  metes  (1,800  feet)  and  the  area  of  the  harbor  will  be  51  hectarei. 
These  immense  sea  walls  are  constructed  from  artificial  stone,  made  on 
the  spot.  Two  hundred  and  sixty-three  thousand  eight  hundred  sad 
thirty -six  centimetres  of  this  artificial  stone  hare  been  sunk  or  ns«d  in  the 
construction  of  tbis  breakwater. 


DiriSION   OF  LAiUB   MBNZALLSH. 

The  work  on  this  extending  from  Port  Said  to  kilometre  23,  a  distaaes 
of  14  miles,  has  been  very  importint,  it  passes  through  a  large  lake  veiy 
much  subject  to  the  acti3n  of  the  wind  and  sea,  from  which  it  is  separated 
but  by  H  narrow  strip  of  land.  The  amount  of  matter  excavated  here  woold 
be  rejiresented  by  1 1 ,141,022  cubic  metres.  The  division  of  £1  Guisr  is  the 
longest  division  of  the  canal,  cxtendiotr  over  thirty-five  miles.  As  far  as  Ksb- 
tara  it  is  very  straii^lit,  but  afier  that  locality  is  passed  the  work  is  heavy  espe* 
cially  at  £1  Guisr.  The  cuttings  in  this  neighborhood  are  the  deepest.  Kaa- 
tara  is  ilie  principal  town  of  this  division.  It  is  twenty-eight  miles  from  Port 
'  Saiu.  Lake  Ballah  is  eight  miles  south  of  Eantara.  In  this  neighho^ 
hood  is  the  village  of  £i  Gaisr,  which  is  the  highest  elevation  on  the 
peninsula.  The  work  here  was  very  severe.  lamailia,  on  Lake  Timssh, 
is  so  call^'d  after  the  Eht^dive  Ismail  Pacha.  It  owes  its  origin  to  ths 
canal.  The  original  canal  from  the  Damietta  branch  of  the  Nile  extend- 
ed to  the  town  of  Zigazig,  fifty  miles  west  of  I^mailia.  One  of  the  fint 
acta  of  the  present  company  was  to  bring  it  within  a  few  miles  of  the 
site  of  I^mailia.  The  divi>ion  of  Ismailia  is  the  third.  It  extends  thraogh 
Lake  Timsah  and  the  Bitter  Lakes  to  Kilometre  one  hundred  and  fifteen. 
Thence  to  Suez  is  the  fourtli  division.  Su^^z  was  an  unimportant  tova 
heretofore,  but  it  has  been  galvanized  into  vigorous  life  by  the  operaUons 
of  the  canal  company.  On  August  15,  1865,  the  fete  day  of  Napoleoa, 
the  first  vessel  passed  through  from  sea  to  sea.  It  was  &  coal  barge, 
which  uia'le  the  passage  a  portion  of  the  way  by  the  fresh  water  caosl. 
In  January,  1867,  as  our  special  telegraraa  at  thit  period  announced, 
large  steniners  passed  through  by  nr.eana  of  the  same  auxiliary  canal. 
The  completion  of  the  maritime  canal  is  of  recent  date. 


1869] 


THJB  SUEZ  OAKAL.  409 


BALAKCB   BHEXT. 


The  following  is  the  general  balance  sheet  of  the  Saez  Canal  Company, 
exhibiting  the  whole  indebtedness  incurred  in  the  construction  of  the 
work,  and  the  funds  which  have  accrued  from  various  sources;  dated 
June  30, 1869 : 

Db.  Francf. 

Expen^ei  of  organlzflt^on  frotn  1854  to  1850 2,^i,435.8T 

Con straction  ol  general  r  fa  es P*2n,sio.4) 

Fnrni  nre  and  materi  I  of  offlcea  in  Alexandria  and  the  admlLietration  in  Paiia.      I4i  s^iB  34 

Interest  on  fhar^s  l859-'6e 64,OM.Hn3  80 

Into  cat  on  bond w  lSh8-*6U 7.S  .*».493.76 

Extinction  of  cb  igatlon-  1868O 1,7  (MroCOi) 

Expeu#e«  incurred  In  f-ontract^ng  loan  of  ono  hundred  irili'on-  of  franca 1,486,745.40 

Qeneral  expenaea  of  the  admit  irtration  of  t&e  t-ttA'^^  ft  the  comu^'ny,  com<ri'- 
aion  to  ag<  nta,  aaa  nei^otiatioua  in  Kr&nce  and  E^^}  pt,  from  January  1, 1S59, 

to  date  ...  IM'^KMl.TS 

Expen^eaof  health  department,  1868-9 6  7,056.16 

i(xp4'Q*eB  of  teleg  apba,  Ii$6d-9 145.087.40 

^xpeneeiiof  d  >malu,  1869 17,603.95 

£x]>«;niH;8  of  tranaporiatfon  1866-0,  Inclndinfc  floatlog  and  roUiog  etock,  bnildioga, 

t-heda,  ai  dai^o  vi.tnall'ni; 8,101,631.83 

General  e  cpeoaea  of  oonstractlon  adTascea  to  contractora  on  mat  rial  and  Tictnal- 

ling 17.918  948.88 

O  hrr  9iurea,  bnildins:*',  &c 8«.S4l,ft80.8S 

Wo rka  iu  the  construction  of  the  canala  and  porta « 217,f.7i  6:0  7S 

Var  oai*  running  accounts  with  contractora 6,%M99.4B 

Runnii  g  acc  lunia  of  v<tr  ona  B6ryicea— 

BnpeiiorHgeiiCyin  Kgypt -  14.117,558.88 

Qeu  ni  dir  ct  un  of  worJu l.*>7-i,250.09 

'ir«(  hit  t-crvlce 8,0>l,' 87.15 

TtlesT'Eph  atrvlce....- 4'9.7B 

health  department ^ 69833.7i 

Cfpiul  acco  lUt^ 

Egyptian  government  on  account  of  grants 8P,O'^,00'>.00 

lia  MLce  to  be  recovered  on  bonda,  for  calla  fal  en  due M  895.00 

VHrious  debtors JJ-'O.IBI.SS 

CttAh  D^  X  atid  ponfollo  of  the  superior  agency  in  Egypt 4,0^4,0(^0 .00 

C  ah HK2<»1.08 

bank  of  France « 1'm*8«.71 

Ag  Iculturat  credit ir),095.«5 

Commerciu  ani  industrial  cedit 4,^i,0>0.00 

80CU  te  generale S.ftvSO .28 

b  cleie  cea  depK'ta  et  comptea  oonranta a\7:?4.46 

Secnritie*  .*2 1.783  98 

rro^crty  (vaiiouii) 7,8  9,464.59 

Total »«. 451,(56,681.16 

Tb.  F'-anca. 

Caplal(6<'0f-.  on  the  400,000  abnres  subscribed) 80O,fiO".n00.CO 

lndeiiJT.itvflxedbyarb"at  or.  ol  th"Bmp»ror M,MM),0!i0.00 

Loan  Oi  100,<  00,(JOU  (  OJ  f    o    the    S3,:m  bonds  subscribed) 99,1/99,900.00 

Y»lne  of  grAotn  eiMiled  hv  tbf  convention  of  i8d   An' n-t.  1869,  between  the 
Egyptian  gov  rnroeiit  m.  1   he  c  •    pany,  841,000,00-  ;  tr  ^m  which,  deducting 

V-  In    of  propeitv  prtr  cuay  i  u  chimed,  .here  rem.tliia 99,744,6S0.80 

Becc'ved  from  various  8  urce- 

fieceiptsanteMor  o  formation  of  the  cimpa^y r>,'0I.F8 

Proructe  of  temporal  yibveMmentf,  U5b-i&(j8 18,440.^88  64 

Prodnctarf  ten  p  >ra  y  investments,  1669 5<9,()37.4tt 

F' om  V  riuu«  sources* .•• * rMI.3ii7.V5 

Acco*»B  ry  proce -ds  7,617,716.60 

Keceipts  conuecte*  with  tha  works 401.70 

Re«'c  pt4— Tianeportaiirn  department,  1866-69 8,491,^9i.95 

Be.  e  jtF— SanU'uyf^epartment,  1863 84.371.S1 

iiece  pte—  otal  and  telegraph  de.artment,  1868-69 6.%K35.37 

>  eceipte  from  domain 57^,625.79 

Cnr^ei  t  account  of  domain lH8,/70.94 

Crtditora  (varioni>) 6,471,810.08 

Total •. .$461,656,661.10 


410  TBS  sirxz  OAKiL.  [D^eaRkr, 

EK0LI8H   XNTSRB8T3   IV  THB   8UEZ   OAXAL. 

While  Lord  Stratford  de  Redcliffe  was  ambassa'lor  at  Constcntiiiople, 
M.  de  Lesseps  addressed  to  him  a  letter  in  reference  to  English  intererti 
in  the  piercins:  of  the  Isthmus  of  Sues  by  means  of  a  canal.  The  folfow. 
ing  is  a  translation  of  this  interesting  document : 

"There  are  questions  (says  M.  de  Lesseps)  which  require  to  be  frankly 
approached  in  order  that  they  may  be  fairly  resolved — as  wounds  or 
maladies  have  to  be  discovered  before  they  can  l^e  cured.  The  kindness 
with  which  you  have  received  my  first  ol>servation8  in  regard  to  a  saVject, 
the  gravity  of  which  cannot  be  disguised,  encourages  me  to  submit  to 
you  the  question  of  the  Suez  Canal,  from  a  point  of  view  in  which,  I  think, 
the  matter  miiy  be  very  usefully  discussed.  The  inflnence  which  your  high 
character  and  long  experience  naturally  give  you  in  the  decii^ions  of  joar 
government  relative  to  all  Oriental  questions  makes  me  anxious  to  neglect 
^nothing  that  might  aid  you  in  forming  an  opinion  with  fuli  knowledge  of 
the  facts. 

The  results  already  attained  through  the  intimate  alliance  of  France 
and  England,  sufficiently  prove  how  advantageous  is  this  union  of  the 
two  nations  in  the  interests  of  the  equilibrium  of  Europe  and  of  civilization. 
The  future  happiness  of  all  the  nations  of  the  world  is  involved  in  this 
state  of  things,  which,  to  the  everlasting  honor  of  the  governments  ti'at 
have  thus  far  maintained  it,  can  alone  guarantee  to  mankind  the  benefits 
of  peace  and  progress.  Hence  the  necessity  of  removing  in  advance  every 
cause  of  rupture,  and  even  of  coolness,  between  the  two  nations;  benced>e 
imperious  duty  of  examining  among  possible  eontingenciM  what  cirenm- 
stances  are  of  a  nature  to  awaken  antAgonistio  feelings  and  provoke 
among  either  people  those  emotions  against  which  the  wislom  of  govern- 
ments is  power.ess  to  strive.  The  motives  of  a  hostile  rivalry  tend  succes- 
Bively  to  give  place  to  that  generous  emulation  which  produces  grand 
achievements/ 

In  considering  the  situation  in  a  general  way,  however,  one  f^iU  to 
perceive  on  what  ground  or  what  occasion  ttiofte  straggler  which  delag^ 
the  world  with  Mooi  could  begin  again.  Can  financial  or  comniercial 
intt^rcsts  divide  the  two  nations  ?  But  the  capital  of  Great  Britain  throvn 
into  so  many  French  enterprises,  and  the  immense  development  which  inter- 
national commerce  has  made,  establish  bonds  bftwe-'n  ihein  nhicli 
become  closer  every  day.  Are  political  interests  or  the  questions  of 
principle  likely  to  awaken  strife  f  But  the  two  nations  have  now  but  one 
single  object,  one  single  ambitipn — the  triumph  of  rg\t  over  migl.t,  of 
civilization  over  barbarism.  Finally,  will  paltry  jealousies  in  regird  to 
territorial  extension  divide  them  f     But  to-day  they  undenttnd  that  ilie 


18W]  TBS  BUSZ  OAVAU  411 

globe  is  vast  enough  to  present  to  their  respective  populations  domains  to 
be  reclaimed,  and  human  creatures  to  be  reclaimed  from  barbarism  ;  and 
that  whenever  tbeir  flags  were  together  the  conquests  of  the  one  enhance 
the  profits  of  the  other. 

At  the  first  g)ance\  therefore,  it  u  difficult  to  detect  anything  in  the 
general  situation  that  could  alter  our  beneficial  relations  with  ISngland. 

Nevertheless,  upon  a  more  careful  scrutiny,  an  eventuality  presents 
itself,  which,  by  making  the  two  most  enlightened  and  moderate  Cabinets 
of  Europe  partake  of  popular  prejudices  and  passions,  is  capable  of  reviv- 
ing old  antipathies,  and  compromising^  with  the  alliance,  all  the  old  bonds 
of  amity  which  united  the  peoples.  There  is,  in  fact,  a  cei  tain  point  upon  the 
globe  the  freedom  and  neutrality  of  which  is  intimately  connected  with  the 
political  and  commercial  power  of  Great  Britain— ^a  point  which,  in  times 
gone  by,  France,  on  her  part,  has  desired  to  become  possessed  of.  That 
point  is  Egypt,  the  direct  path  from  Egypt  to  the  Indies-^Egypt, 
sprinkled  so  many  times  whh  the  blood  of  Frenchmen.  ' 

It  would  be  superfluous  to  review  the  motives  which  would  actuate 
England  in  preventing  Egypt  from  falling  into  the  hands  of  a  rival  nation 
But  we  must  also  carfully  note  that,  with  interests  less  positive,  France-^ 
under  the  empire  of  her  glorious  traditions,  under  the  impulse  of  other 
sentiments,  instructive  rather  than  critical,  and  for  that  reaaon  all-powerful 
in  the  minds  of  her  sensitive  people — would  never  leave  England  in  the 
peaceable  possession  of  Egypt.  It  is,  therefore,  clear  that  so  long  as  the 
route  t.>  the  Indies  is  open  and  secure,  and  that  the  condition  of  the 
country  guarantees  facility  and  promptitude  of  communication,  Bngland 
will  never  attempt  to  create  grave  difficulties  by  appropriating  a  territory 
which  has  really  no  other  value  to  her^s  than  as  a  place  of  transit.  It  is 
equally  evident  that  France,  whose  policy  for  the  last  fifty  years  has  con- 
sisted in  contributing  to  the  prosperity  of  Egypt  as  much  by  her  counsels 
as  by  the  co-operation  of  a  large  number  of  distinguished  Frenchman  in 
Egyptian  affairs,  in  science,  in  administration,  and  in  all  the  arts  of  peace 
or  war,  will  never  attempt  to  realize  the  project  of  an  epoch  now  passed 
away,  so  long  as  Ekigland  keeps  her  foot  from  the  country. 

But  supposing  that  one  of  those  crises  which  so  frequently  disturb  the 
East  should  happen,  or  that  England  should  ihrnk  herself  obliged  by 
circumstances  to  take  possession  of  Egypt  in  order  to  prevent  another 
from  seizing  it,  let  us  inquire  whether  it  is  possible  that  the  alliance 
would  resist  the  complication  which  such  an  event  would  produce? 
What  reasons  would  Engliind  have  for  believing  herself  forced  to  become 
mistress  of  Egypt  at  the  risk  of  breaking  her  friendiy  relations  with 
France!  Solely  on  this  account:  That  Egypt  is  the  shortest  and  most 
direct  route  from  England  to  her  Oriental  possessions ;  thnt  this  roa<l  must 


412  THB  suvz  CAKAL.  [Decmhef, 

be  constantly  open ;  and  that  she  can  make  no  ter^a  with  anything  that 
touches  this  transcendent  interest.  Therefore,  by  her  natural  position, 
Egypt  may  be  the  cause  of  a  conflict  between  France  and  Great  Bribiia ; 
and  }et  the  cbances  of  rupture  would  disappear  if,  by  a  providential  event, 
tlie  gpograpliical  conditions  of  the  old  world  were  changed,  and  the  route 
to  India,  instead  of  trn versing  the  lieart  of  Egypt,  was  carried  back  to  the 
boundaries,  and,  being  open  to  all  the  world,  was  no  more  in  danger  of 
becoming  the  privileged  possession  of  any. 

Well,  this  event,  which  must  be  in  the  designs  of  Providence,  is  to-dav 
within  the  reach  of  mankind.  It  can  be  accomplished  by  human  indostry ; 
it  can  be  realised  by  piercing  the  Isthmus  of  Suez.  That  is  one  to  which 
nature  offers  no  obstacles;  it  is  one  which  would  attract  the  free  capital 
of  England  as  well  as  other  countries. 

Let  the  Isthmus  be  cut  across;  let  the  waves  of  the  Mediterranean 
mingle  with  those  of  the  Indian  Ocean  ;  let  railroads  be  directed  thither^ 
and  Egypt,  becoming  immensely  valuable  as  a  productive  country,  as 
having  good  internd  commerce,  as  warehouse  and  place  of  transit,  wooM 
lose  its  perilous  importance  as  a  line  of  communication  always  tkueerttfo 
and  frequently  contested.  The  possession  of  Egyptian  territory  h&ng  do 
lonnrer  a  matter  of  interest  to  England,  the  .country  would  cease  to  be  the 
object  of  a  possible  struggle  between  that  power  and  France.  The  union 
of  the  two  people  would  be  henceforth  unalterable,  and  the  world  be 
preserved  from  the  calamities  which  would  follow  their  rupture.  This 
result  affords  such  guarantees  foi  the  future  that  it  is  sufficient  to  indicate 
it  to  attract  to  the  enterprise  destined  to  accomplish  it  the  sympathy  and 
encouragement  of  statesmen  whose  efforts  have  the  sole  aim  of  placing 
the  Anglo  French  alliance  upon  indestructible  bases.  You  are  one  of 
these  men,  my  lord,  and  you  have  so  great  a  pan  in  the  debates  of  la 
haute  politique,  that  I  am  extremely  anxious  to  make  you  acquainted  with 
my  aims." 

M.  de  Lesseps  has  published  an  interesting  pamphlet  discussing  the 
various  international  advantages  of  the  Suez  Canal,  from  which  we  snm* 
marize  some  important  matter.  In  touching  upon  this  important  question, 
so  far  as  it  regards  Turkey,  he  adopts  an  ingenious  device,  which  would 
have  the  effect  of  specially  commending  the  subject  to  the  attention  of  all 
good  Moslems,  whether  Turkish,  Egyptian,  or  Hindoo.  He  prefaces  bis 
chapter  on  th3  Turkish  interest  in  the  undertaking  with  three  verses  from 
the  dlst  chapter  of  the  Koran,  which  bears  the  Utle,  "  Against  the  Spirit 
of  Imraovableness."  These  verses  read  as  follows:  *'  Do  you  not  see  that 
God  has  subjected  to  your  use  all  that  is  upon  the  earth  !  Ho  has  poured 
out  upon  you  his  benefits,  both  evident  and  hidden.  Jl  t  pj3n  say:  We 
will  follow  rather  that  which  we  found  among  our  faihors     But  what  if 


18&9]  THS  BWSZ   OAHAL.  413 

Satan  slioiild  iDvito  ihein,  to  the  torment  of  fire  t  Do  you  not  behold  the 
ship  wafted  upon  the  sea,  bearing  the  gifts  of  God,  to  make  yoa  perceive 
his  teachings !  There  is  in  this  many  signs  for  the  steadfast  man  to  be 
grateful." 

M.  de  Lesseps  declares  that  interests  of  the  highest  order  bind  Turkey 
to  the  success  of  the  enterprise.  And  those  interests  he  classiGes  uader 
politics,  religion,  and  commerce. 

THE   POLITIOAL   INTBREST 

is  dearly  defined,  since  the  enterprise  adds  to  the  stability  of  the  empir', 
in  giving  it  a  new  maritime  passage,  of  which  Europe  will  be  as  much 
interested  in  maintaining  the  independence  as  it  has  been  in  preserving 
the  neutrality  of  the  ancient  route  of  the  Dardanelles.    The  integrity  of 
the  Ottoman  Empire  (inscribed  in  treatises  which  actually  have  often  had 
no  other  force  than  accord  founded  on  the  interests  of  the  contracting 
parties)  acquires  a  consecration  much  more  complete  in  the  necessities  of 
the  case,  in  the  indispensable  conditions  of  the  equilibrium  of  the  world. 
The  powers  of  Europe  have  had  one  motive  for  defending  this  integrity ; 
henceforth  they  will  have  two*    The  Sultan  becomes  the  guardian  of  two 
poliiical  positions  of  the  greatest  importance — the   passage   from  the 
Black  Sea  to  the  Mediterranean,  and  the  passage  from  the  Mediterranean 
to  the  Asiatic  and  Austral  oceans.    In  the  same  hand  these  two  passages 
lend  each  other  a  natural  strength,  a  mutual  guarantee.    Under  the  same 
sceptre,  they  sanction  and  consolidate  the  neutrality  of  the  empire,  which 
this  double  postion  will  at  length  incorporate  in   the   equilibrium  of 
Europe.    As  the  European  powers  can   never  consent  to  see  the  Suez 
Canal  possessed  or  dominated  by  one  of  themselves,  Egypt  can  never  in 
any  case  be  a  gift  or  compensation ;  and   thus  vanish  the  dream   of 
certain  statesmen,  who,  desirous  of  obtaining  a  portion  of  the  spoil », 
fancy    that    they   can    still    render    acceptable    to   Europe   the    par- 
tition   of  the  Ottoman  Empire.      The  policy  of  exclusive    conquests 
appears  to  have  had  its  day.    Bat,  supposing  that  the  world   must  fall 
again  into  the  old  ruts,  what  dangers  would  the  Ottoman  Empire  have  to 
foresee  and  provide  against }     On  one  side  it  must  defend  Constantinople 
— on  the  other  to  watch  Egypt.    These  are  the  two  weights  up>n  the 
balances — ^for  it  cannot  be  forgotton  that  since  the  commencement  of 
the  present  century,  ou  two  memorable  occasions,  the  partition  of  the 
Ottoman  Empire  has  been  seriously  proposed  by'  placing  Egypt  and 
Constantinople  in  the  two  scales  as  the  condition  of  the  sale.     Wei), 
recent  events  have  proved  that  Turkey  would  not  be  left  to  stand  alone 
in  resisting  attacks  upon  the  Constantinople  side- 


414  TBI  BtJEZ  CAKAU  [Dicemhtr^ 

As  for  the  West,  we  know  England  and  France  could  never  agree  to 
the  pos:$ession  of  E^rypt  by  one  of  themselves.  Rut  what  difference  in 
regard  to  becurity,  if,  instead  of  being  a  merely  natural  question  between 
these  two  powers,  the  question  became  European ;  if,  by  the  possesioB 
of  a  neutral  route  between  the  two  most  opulent  oceana  on  the  globe, 
Egypt,  under  the  suzerainty  of  the  Sultan,  rendered  Austria  jointly 
responsible  for  her  position  by  the  prosperity  of  the  Adriatic  and  the 
developments  of  martime  trade ;  Itely  and  France  by  their  Medita> 
ranean  ports ;  England  by  her  communications  with  India  and  Ans- 
tralia ;  Russia  by  her  ports  on  the  Black  Sea,  and  by  the  mtritime 
communication  of  the  great  rivers  which  debouch  near  her  settlem^its 
upon  the  Amoor ;  Spain  by  her  colonial  possessions  and  her  Medito-- 
ranean  littoral ;  Holland  by  her  interests  in  Sumatra,  Java,  and  Borneo; 
the  United  States  of  America  by  an  abbreviation  of  nearly  8,000 
leagues  for  their  Atlantic  ports  in  navigating  towards  the  Indian  Ocean  f 

Let  us  add  that,  through  al!  the  interests  attaching  to  the  maintenance 
of  the  8fatu  quo^  the  Suee  Canal  is  destined  to  bind  Egypt  still  man 
closely  to  the  rest  of  the  Ottoman  Empire.  All  antagonisn  between 
the  vassal  and  the  sucerain  will  forever  disappear,  not  only  on  account 
of  the  exterior  considerations  which  have  been  indicated,  but  also  on 
account  of  a  powerful  motive  of  internal  policy.  For  as  the  Suet  Canal 
becomes  the  material  demonstration  of  the  principle  sometimes  misun 
derstood,  that  the  prosperity  and  strength  of  Egypt  are  elements 
essential  to  the  vitality  of  Turkey ;  the  vassal  will  be  so  mnch  mors 
assured  that  partiaans  for  the  enfeeblement  of  Egypt  will  have  lost  all 
influence  in  the  councils  of  the  Sublime  Porte.  Enlightened  men  in 
Turkey,  so  far  from  entertaining  alarm  at  the  situation,  peroeire,  on 
the  contrary,  in  the  consequences  following  the  opening  of  the  Suei 
Canal,  a  pledge  of  security  for  the  future;  for  they  have  always  dreaded  ex- 
posures  to  dangerous  eventualities  on  the  part  of  some  European  power ; 
they  always  preferred  to  see  Egypt  governed,  in  an  exceptional  manner, 
by  Mussulman  princes  of  Turkish  orgin,  and  who  were  attached  to  tiie 
metropolis  by  many  common  ties  of  policy  and  religion. 

The  Viceroy,  Mohammed  Said,  in  his  communications  with  the 
statesmen  of  Turkey  in  reference  to  susceptibilities  which  it  was  sought 
to  awaken  against  him,  remarked : 

'*  In  the  actual  situation  a  governing  Prince  of  Egypt,  who  had  mental 
reservations,  would  never  permit  the  execution  of  a  Suez  CanaL  AH 
the  coast  from  Damietta  to  the  principal  ports  of  Syria,  is  to-day  exempt 
from  all  foreign  surveillance  as  well  as  fVom  European  navigation 
Nothing  would  prevent  the  Viceroy  of  Egypt  under  given  circumstances 
to  prepare  armaments^  to  concentrate  troops  without  attracting  eztenial 


1869]  TBI  6UE2  OANAL.  4l5 

attention,  pnd  to  precipitate  hia  forces  into  Syria  before  measures  of 
prevention  could  be  arranged.  But  witli  a  canal  to  Suez  the  position  is 
completely  changed.'* 

^  Besides,  the  important  Arabian  possessions  of  Turkey,  which  Egypt 
is  now  charged  with  provisioning  in  grain,  could  be  easily  starved ;  or 
as  the  leaven  of  revolt  is  there  always  at  hand,  it  could  be  laid  hold  of 
and  augmented  by  Egypt,  which,  under  the  present  system  of  commu- 
nication, would  be  in  a  position  to  dominate.  Experience  has  already 
proved  that  the  distance  and  the  difficullies  of  transportation  would 
never  permit  Turkey  to  send  into  Arabia  the  forces  necessary  to  assure 
the  preponderance  of  her  power.  The  canal  has  been  spoken  of  as  a 
barrier  between  Egypt  and  Turkey.  It  is  sufficient  to  know  the  country 
to  become  convinced  that  physically  the  separation  between  Turkey  and 
Egypt  is  much  more  complete  by  the  desert  than  it  would  be  or  will  be 
by  the  canal,  around  which  populations  of  Syrian  and  Egyptian  culti- 
vators will  assuredly  congregate." 

This  language  is  not  less  remarkable  for  its  loyalty  than  for  its  striking 
truth. 

Let  us  now  show  that  in  this  question  political  interests  are  strengthened 
by  religious  interests;  that  sometimes  the  one  is  founded  in  the  oth^ r. 
The  power  of  the  Sultan's  {.uccessors  of  the  Caliphs  is  at  once  a  politi'*al 
power  and  a  supreme  pontificate.  The  Grand  Signor  is  chief  and  pro- 
tector of  the  MuESulman  religion,  and  at  the  same  time  sovereign  of  the 
territories  which  compose  his  States.  Nobody  can  be  ignorant  of  the 
importance  the  Moslems  attach  to  the  possession  of  the  Holy  cities,  wbiuii  . 
is  regarded  by  them  aa  an  essential  condition  of  the  spiritual  authority  of 
the  Sultan.  But  the  difficulties  and  the  slowness  of  communication 
between  Turkey  and  Arabia,  the  consuming  distance  to  be  traversed,  the 
deserts  to  be  passed  in  order  to  convey  thither  the  forces  sufficient  to 
maintain  supremacy — the  opening  of  the  Suez  Canal  will  cause  all  tbe^o 
obstacles  to  disappear.  Constantinople  can  communicate  in  a  few  day^ 
with  Arabia;  and  a  maritime  route  alwaps  practicable  and  easy  will  per- 
mit of  arrangements  being  made  against  all  eventualities,  and  really  brin<^ 
the  sanctuaries  of  faith  again  under  the  direction  of  the  Sovereign  Pontiff, 
The  execution  of  the  enterprise  resolved  upon  by  the  Viceroy  of  Ejvpt ' 
will  facilitate  and  multiply,  to  the  aggrandisement  of  the  Sultan's  author* 
ity,  one  of  the  acts  of  faith  most  dear  to  the  piety  of  Moslems,  and  free 
the  subjects  of  the  empire  from  those  perils  ot  the  holy  prilgrimage. 
To/day  the  route  of  the  caravans  is  marked  by  the  bones  with  which  it  is 
annually  whitened. 

In  an  indirect  manner,  but  not  less  certainly,  the  Suez  Canal  will  render 
the  same  service  to  the  Moslem  populations  of  Asia  and  Africa..    By 

2 


41,6  THB  BUEZ  OAVAk  [i)«e#fliltr, 

uniting  the  two  eeas,  it  introducea  into  the  Red  Sea,  and  placet  at  tbe 
disposal  of  Ihe  badjis  of  those  countries  the  innumerable  means  of  com* 
nfiunication  which  are  found  in  such  perfection  in  the  Mediterranean ;  this 
rendering  still  more  direct  the  influence  of  the  Sultan  over  the  tribes 
which  already  recognize  and  respect  his  religious  supremacj. 

In  regard  to  commercial  relations,  Turkey  will  reap  adrantages  frooi 
the  union  of  the  two  seas,  not  less  evident  than  have  appeared  in  treaty 
of  political  and  religious  affairs.     Without  recurring  to  BoaTentra  of  ancient 
Byzantium,  it  is  not  to  be  disputed  that  at  certain  epochs  of  the  middle 
ages  Constantinople  was  one  of  the  great  marts  of  commerce  between  the 
East  and  the  West.     By  the  Euphrates,  by  way  of  the  high  plateau  of 
Asia,  she  received  the  products  of  India ;  the  silks  of  China  and  the  com- 
modities of  all  eastern  lands  embarked  at  the  ports  of  the  Black  Sea  were 
hounded  on  the  shores  of  the  Bosphorus.    The  Venetian  and  the  Geootse 
were   the    factors  in  these   important  transactions.    But,  bj  perfected 
methods,  by  combinations  differently  arranged,  the  piercing  of  the  isthmus 
should  offer  to  the  commerce  and  navigation  of  Constantinople  a  fiir 
wealthier  career,    A  single  material  fact  will  be  suflicient  to  indicate  the 
advantages  which  the  city  has  a  right  to  expect  from  the  new  route.    Of 
all  the  great  European  ports,  Constantinople  is  the  one  which  the  maritime 
canal  brings  nearest  to  India  and  China.    To  day  it  is  the  most  distant 
It  is  at  present  6,000  leagues  from  Bombay ;  it  will  in  future  be  bat  1,800 
leagues.    Necessarily  it  will  become  the  emporium  of  a  large  portion  of 
the  commerce  which  will  establish  itself  between  the  oriental  oceans  and 
the  Black  Sea ;  and  an  idea  may  be  gained  of  this  movement  bj  remarking 
that  the  Trebizonde  and  Odeasa  are  less  remote  from  Suez  than  Trieste 
and  Marseilles.    And  the  commercial  advantages  which  have  just  been 
inferred  apply  to  all  the  other  ports  of  the  Empire  in  Asia  Minor,  in  Syria, 
and  in  the  Archipelago.    By  the  mouth  of  the  Danube,  Constantinople 
extends  its  commercial  relations  to   the   veiy  centre  of  Hungary  anU 
Germany.    Naturally  these  relations  will  be    augmented  by  the  opening 
of  the  isthmud  to  navigation,  and  the  MoldotWallachian  provinces,  ia 
obtaining  new  outlets  for  their  products,  above  all  for  cereals,  will  not  fiul 
to  acquire  new  elements  of  prosperity.    Finally,  Turkey,  which  is  to-day 
•a  stranger  to  the  opulent  exchanges  which  are  commanded  by  the  great 
route  around  Cape  Horn  and  the  Cape  of  Good  Hope,  can  take  an  aciiTS 
part  therein  when  the  path  of  exchange  shall  be  the  Red  Sea  rendered 
accessible  to  the  coasters  of  the  Mediterranean  by  the  passage  of  Suez. 

Such  are  the  immediate  results  to  Turkey  of  the  opening  of  the  maritime 
canal ;  independently  of  the  scope  which  will  be  given  to  them  in  tho 
future  by  the  interest  of  traders  and  the  enlightened  solicitude  of  the 
government  for  the  well  being  and  progress  of  its  population. 


869]  THB  SITBZ   CANAL.  417 

It  18  claimed  that  the  best  and  most  trustworthy  data  from  which  to 
estimate  the  probable  traffic  of  the  Suez  Canal,  is  found  in  the  move- 
ments of  the  various  European  steamship  companies.  In  France,  the 
Mesageries  ImperiaUs  are  adapting  some  of  their  fine  steamers  for  the 
canal  traffic.  A  number  of  light  draught  steamers  are  npw  building  in 
England  for  a  similar  use,  and  docks  and  warehouses  have  been  secured  by 
the  Russian  Authorities  at  Port  Said,  for  the  use  of  the  Great  Com- 
mercial Company  of  Odessa,  whose  vessels  will  ply  between  that  port 
and  the  East.  The  powerful  and  wealthy  company  known  as  the 
/Lustralian  Llojd,  has  offered  to  carry  free  samples  of  the  national  pro- 
ducts, with  a  view  to  improving  and  extending  the  trade  of  Austria  in 
the  Indian  seas ;  and  the  Italian  government  has  urged  the  ship  owners 
of  that  country  to  prepare  to  profit  by  the  opening  of  the  canal.  A 
steamship  line  is  organizing  in  Spain  to  ply  between  Barcelona  and 
the  Philippine  Islands;  and  in  this  country,  the  Oriental  Steam  Naviga- 
tion Company  will  soon  establish  direct  communication  with  China, 
India  and  the  Mediterranean  ports.  As  a  general  summary  of  the 
commercial  movement,  M.  De  Lesseps  estimates  the  tonnage  of  Liverpool 
at  6,000,000,  Marseilles,  6,000,000,  and  the  trade  through  the  Dardanelles 
6,000,000 ;  and  claims  that  the  traffic  of  the  canal  will  be  6,000,000 
at  least,  affording  from  the  tonnage  alone  an  annual  return  of  $12,000,000. 

It  is  also  claimed  that  the  opening  of  the  canal  will  favorably  affect  the 
commerce  of  the  United  States  with  the  East.  For  the  fiscal  year  ended 
June  30,  1867,  our  direct  trade  with  the  principal  countries  of  the  East 
was  as  follows : 

Exports.  Imports. 

Datch  Bast  Indira $204,895             $       

BritehBist  Indies 881,141  8,939,485 

Australia .' 5,103,855  S68;<IUt 

Phll.ipplne  Islands 45,68S  8,473.871 

Oih«r  stouth  Facllic  Islands 85,187                

China 8,788,145  13,11S,440 

Total $14,800,809  $31,780,C91 

During  the  same  period  the  total  of  exports  to  Southern  Earope,  the 
Mediterrenean  and  the  East  Indies,  was  S7 1,780,203,  and  of  imports 
$65,394,796,  in  all  $137,147,999;  from  which  it  will  appear  that  one 
sixth  of  the  foreign  commerce  of  the  United  States  was  transacted  with 
the  countries  named  in  the  above  table.  How  much  of  this  trade  will  flow 
through  the  new  channel  remains  to  be  seen.  The  canal  undoubtedly 
shortens  the  average  distance  between  our  Atlantic  ports  and  the  East,  as 
will  appear  from  the  following  tqble  of  comparative  distances  from  New 
York  and  Port  Royal  to  the  principal  ports  of  Australia  and  Asia,  via 
Gibralter  and  S9ez,on  the  one  hand,  and  San  Francisco  and  the  Pacific  on 


4X9  TBI  ivu  CAHik  [DicenAtr, 

the  other-— measured  in  nautical  milesi  with  the  exception  of  the  dittanoe 
overland  to  the  Pacific  coast : 

From  Hew  To?k  Fiom  Port  B<»yal  Fraa  8.T.  vit 

Tla  G'bnlur  tU  Oibrtltar  Sad  F'tndeeo 

and  Nnes.  and  »«Mk  *  FMfle  Bl. 

Melbonnie.... • IMOO  13,700  ]0l« 

Bharfchnl 1S,600  18,C0>1  8(9 

HoDffKorg 11JG0  39,900  i,S)0 

Xai.a* ll.ftfO  19,100  t^ 

8inga<ore 10,aoo  10,800  10,fl» 

BataTia 10,600  11,000  11,<S0 

Peoaog 9,i»0  10,460  lUUQ 

Calcutta 9,700  10,300  19.19 

Ceylon 8,760  9;tt0  UJ» 

As  some  portion  of  onr  trade  will  at  once  follow  the  new  roniesi  it  is 
claimed  that  the  United  States  will  share  largely  in  the  increased  prasp 
peritj  of  the  Mediterranean  ports,  Eeypt,  Arabia  and  the  Indies.  As  t 
movement  is  already  on  foot  to  transfer  a  large  proportion  of  the  cottoa 
manufactures  of  Northern  France  to  points  nearer  the  Meditemneao,  it 
is  believed  that  a  direct  trade  in  the  staple  will  be  established  ioimediatelj 
with  this  country. 

It  may  be  doubted  whether,  in  this  favorable  ahowing,  the  friends  ot 
the  enterprise  have  fairly  estimated  the  probable  traffic  of  the  canal  aad 
its  influence  on  the  commerce  of  the  world.  A  formidable  array  of  &gan% 
and  statistics  are  advanced  in  support  of  these  predictions^  but  certais 
important  facts  appear  to  have  t>een  left  out  of  the  calculation  which  are 
likely  to  affect  the  financial  success  of  the  enterprise  in  no  small  degree. 
As  far  as  the  commerce  of  the  United  States  with  the  Indies  b  cooceraed, 
we  do  not  attach  much  present  importance  to  the  opening  of  tlie  Si  s 
Canal.  Probably  our  East  India  trade  will  follow  the  route  of  the  Pacific 
Ocean,  via  San  Francisco  and  the  trans-continental  railway  lines.  Tlie 
commerce  of  Europe  with  the  East  will  alone  be  influenced  by  the  openiag 
of  the  new  route ;  and  whether  the  vessels  engaged  in  this  traffic  will 
pass  through  the  canal  or  cling  to  the  old  path  by  way  of  the  Cape  of 
Good  Hope,  will  depend  wholly  upon  which  route  shall  prove  to  be  the 
quickest  and  cheapest. 

It  is  the  opinion  of  many  of  our  practical  and  experienced  shipmasters, 
that  westward  bound  sailing  vessels  will  still  follow  the  route  by  way  of 
the  Cape.  It  is  true  the  latter  route  is  nearly  four  thousand  miles  loQ|^r 
than  that  by  way  of  the  Suez  Canal,  but  the  time  required  by  a  saiHsg 
vessel  for  the  voyage  from  Calcutta  to  Liverpool  by  the  new  route  will 
be  longer  by  several  weeks  than  the  average  time  now  required  to  make 
the  homeward  voyage  by  the  old  path  round  the  Cape.  The  reason  for 
this  apparent  anomaly  is  found  in  the  trade  winds  and  monsoons,  which 
favor  the  vessels  taking  the  Cape  route,  and  the  northerly  winds  of  the 
Ked  Sea,  and  westerly  winds  of  the  Mediterranean,  which  prevail  through 
the  greater  part  of  the  year,  and  are  &voraUe  only  to  vMsels  boond  «a8^ 


ra60]  VHB  avBz  oavaIm  419 

ward.  It  is  probable,  therefore,  that  bat  few  westward  bound  vessels,  if 
any,  will  make  the  voyage  from  India  to  the  Northern  European  ports  by 
way  of  Suez.  The  utility  of  the  Canal  will  be  restricted  mainly  to  west^ 
ward  bound  Indiaroen.  To  them  the  priucipal  advantage  of  the  new 
route  consists  in  a  considerable  saving  of  time;  but,  on  the  other  hand, 
there  are  several  considerations  which  render  it  still  uncertain  whether 
even  outward  bound  Indiamen  will  avail  themselves  of  it.  According 
to  the  tariff  of  charges  already  published,  the  tolU  which  must  be  paid 
to  the  Canal  Company  by  the  owners  of  vessels  of  a  thousand  tons 
burden  for  the  privilege  of  passing  through  it,  will  amount  to  nearly 
twenty -five  hundred  dollars.  As  the  tolls  are  graduated  according  to  the 
measurement  of  vessels,  they  would  in  most  cases  exceed  the  amount 
above  stated,  as  the  majority  of  Indiamen  exceed  one  thousand  tons 
burden.  It  is  doubtful  whether  the  saving  of  time  will  compensate  ship* 
owners  for  the  largely  increased  expenses  incurred  by  following  the  new 
route.  Besides  this,  the  navigation  of  the  Mediterranean  is  proverbially 
dangerous,  while  that  of  the  Red  Sea  is  intricate  and  difficult;  nearly  as 
much  so,  indeed,  as  that  of  the  Malayan  Archipelago.  The  Red  Sea 
is  almost  wholly  destitute  of  lighthouses,  its  coast  has  been  but  imper- 
fectly surveyed,  and  no  trustworthy  chart,  indicating  location  of  its  many 
reefs  and  ioolated  rock^,  has  ever  been  prepared.  It  is  but  natural,  there* 
fore,  that  special  rates  should  be  charged  for  insuring  vessels  following  the 
Dew  route,  as  no  company  could  afford  to  take  the  increased  risks  for  the 
same  rates  now  charged  on  vessels  keeping  in  open  sea.  The  saving  of 
time,  which,  under  favorable  circumstances,  could  be  made  by  eastward 
bound  vessels  following  the  canal,  is  to  some  extent  offset  by  the  great 
expense  necessarily  incurred ;  and  it  is  still  uncertain  whether  the  old 
route.4  are  not  the  safest  and  cheapest,  even  for  vessels  whose  cargoes  lose 
in  value  in  proportion  to  the  time  required  to  bring  them  to  market. 

Under  these  circumstances,  the  assertion  made  wiih  so  much  confi- 
dence, that  the  opening  of  the  Suez  Canal  would  revolutionize  the  com* 
merce  of  the  world,  is  manifestly  premature.  It  is  by  no  means  certain 
that  the  canal  will  be  extensively  patronized  even  by  passenger  steamers, 
as  the  passage  will  be  found  far  from  comfortable  at  any  time,  wl)ile  at 
certain  seasons  of  the  year  it  would  prove  dangerou!^,  if  not  fatal,  to  (hose 
not  thoroughly  acclimated.  It  may  be  conceded,  however,  ihat  the  trade 
between  India  and  the  HIack  Sea  and  Mediterranean  ports  will  follow  the 
canal,  and  that  this  traffic  will  be  greatly  increased  by  the  facilities  offered 
by  it;  but  it  yet  remains  to  be  proved  that  the  vast  trade  of  Great 
Britain  with  her  magnificent  Indian  empire  will  be  directed  through  the 
new  channel,  or  even  thU  the  opening  of  the  canal  will  affect  it  to  any 
considerable  extent. 


420  THE  niTAKOZAX  QVKsnov.  [Dflomftir 

TIB   flNANCUii  (lUBSTIOS. 


BT   C.   H.   CARROLL. 


Whai  is  repudiation  f    What  is  a  dollar  f    What  is  tnoaoj  t 

These  specific  inqniries  embrace  all  that  is  essential  in  the  great  aBMi> 
tied  question  of  our  natioDal  finance.  Let  me  endeavor  to  reply  to  tliem 
scientiBcally,  uninfluenced  by  poUtical  prejudice,  oi  by  Ibe  dogmatism  of 
writers  of  any  party,  or  of  any  shade  of  opinion. 

Repudiation  is  the  denial  of  the  validity  of  a  contract,  disavowal  of  an 
obligation,  and  refusal  to  comply  with  its  terms.  On  ibis  point  I  think 
there  can  be  no  two  opiniocs.  Now,  what  is  the  obligation  of  debt  id 
this  country?  Read  it  on  the  back  of  the  greenback  in  your  pocket: 
^^Ihis  note  is  a  legal  tender  for  all  debts,  public  and  private,  except  duties 
on  imports  and  interest  on  the  public  debt.''  This  is  equally  plain  od  the 
b^ck  of  the  note,  and  in  the  law  authoriz'.ng  its  issue.  Nor  is  there  any 
question  that  a  legal  tender  involves  the  compulsory  acceptance  aa  a  dalkr, 
of  anything  which  Congress  decrees  to  be  a  dollar,  in  discharge  of  a  debt, 
even  if  it  be,  as  in  the  case  of  the  greenback,  but  the  evidem^e  of  another. 
The  substitution  of  debt  for  debt  is  not  indeed  payment ;  and  the  lav,  ia 
saying  that  the  note  of  the  government  is  pjymeHtf  says  an  untruth  ;  bat 
it  is  a  **  legal  tender,**  and  hence  a  forced  loan. 

It  takes  two  to  make  a  bai^ain ;  which  of  these  is  the  repudiator  m 
this  case?  Obviously  the  creditor,  when  he  refuses  to  accept  the  green* 
back  according  to  the  terms  of  the  contract ;  and  the  talk  about  repudia- 
tion, of  which  we  hear  so  much  in  reference  to  the  5-SO  bonds,  is  all  oo 
the  wrong  side. 

I  do  not  see  that  the  opinion  of  S.  P.  Chase,  or  of  Jay  Cooke,  as  to  tbe 
character  of  these  bond  ,  is  of  any  more  consequence,  or  is  any  more  biod 
ing  on  the  conscience  or  tbe  cnpital  of  the  nation,  than  the  opinion  of  aoj 
other  citizen  who  may  or  may  not  have  been  concerned  in  their  sale 
immediately. 

Facts  of  experience  ^how  that,  und  r  the  notions  of  political  econoray 
prevailing  everywhere,  the  sovereign  can  make  a  unit  of  price  out  of  * 
bushel  of  beans,  or  a  red  herring,  or  a  paper  token,  or  anyihing  else,  and 
both  debtor  and  creditor  must  be  bound  by  it.  To  my  mind  it  is  fals^ 
economy,  as  well  as  great  folly  and  injustice;  but  no  opinion  which 
favors  a  sound  political  economy  is  popular  or  considered  practical  a 
present,  because  privileged  classes  of  commanding  influence  are  opposed  to 
it  who  gain  by  the  wrong. 

But  an  €z  post  facto  law  is  a  nullity.  Ih^  conuitution  of  tbe  United 
Stat<*s  expressly  declares  that  no  EUch  law  shall  be  passed.  Hence  tfa« 
greenback  is  not  a  legal  tender  (or  any  debt  contracted  jxlor  to  Feb 


1869]  .THE  nNAKOXAL  QUCSnOK.  421 

raary  25, 1862,  the  date  of  tbe  act  which  authorixed  Iheissae  of  the  legal 
tender  notes. 

What,  then,  is  a  dollar  ?  It  is  a  thing  of  law,  and  not  of  fact,  indepen- 
dent of  law.  Every  government,  I  believe,  makes  tbe  mistake  of  estab- 
lishing arbitrarily  a  money  unitt  different  from  the  unit  of  weight,  claiming 
the  right  to  alter  it  in  weight  and  quality  at  will.  Formerly  this  was 
done  notoriously,  to  cheat  the  public  creditors.  So  that,  everywhere,  at 
least  in  Europe  and  America,  law,  and  not  commerce,  determines  what 
the  unit  of  price  shall  be,  and  even  whether  it  shall  be  a  ponderable  sub- 
stance, and  money,  or  not  money.  If  governmentcan  change  its  substance, 
or  alloy  the  coin  at  will,  10  per  cent,  or  20  per  cent,  or  40  per  cent,  and 
siill  give  it  the  same  name,  and  compel  its  acceptance  at  the  same  nominal 
value,  why  not  alloy  it  100  per  cent,  that  is  to  say,  eliminate  the  money, 
and  esta\>lish  a  currency  which  is  not  money  ?  And  this  is  precisely  what 
our  government  has  done  in  making  a  legal  tender  of  tbe  greenback  dollar, 

I  think  government  has  a  constitutional  right  to  do  this  by  the  power 
to  borrow  money,  which  implies  the  choice  to  issue  evidences  of  debt  in 
any  form  that  may  serve  its  purpose  ;  also,  by  the  power  to  regulate  com- 
merce and  the  currency,  the  last  being  implied  in  the  power  to  regulate 
the  value  of  money  :  the  moral  right,  as  well  as  its  expediency,  is  quite 
another  thihfr. 

lb  is  true  the  inference  may  be  drawn  from  tbe  inhibition  of 
power  to  the  States  to  emit  bills  of  credit,  or  roak  '■  anything  but 
gold  and  silver  coin  a  tender  in  payment  of  debts,  that  the  iramers 
of  the  constitution  intended  to  establish  a  hard  money  government; 
but  this  is  only  an  inference/  And,  unfortunately  for  tbis  view  of 
the  case,  the  priuciple  had  lapsed  already  on  the  adoption  of  the  constitu- 
tion ;  for  the  Bank  of  North  America  had  emitted  bills  of  credit,  as  weU 
as  loaned  its  credit  in  deposits,  as  money,  without  money,  which  had 
expelled  so  much  money  from  the  country.  So  that  a  specie  currency, 
with  this  principle  in  operation,  was  impossible  from  the  first. 

The  original  dollar  was  coined  in  Bohemia  of  a  troy  ounce  of  silver,  the 
fineness  of  which  I  do  not  remember  to  have  seen  stated.  Tliis  was 
superseded  by  the  Spanish  dollar,  weighing  416  grains  of  standard  silver^ 
about  nine-tenths  fine,  and  the  latter  was  adopted  as  the  money  unit  here  prior 
to  the  establishment  of  the  mint.  The  first  American  dollars  were  struck 
in  1792  to  conform  in  weight  and  fineness  to  this  Spanish  coin 
The  mint  dollar  afterwards  underwent  several  alterations,  until  1853,  when 
the  coinage  of  the  silver  dollar  ceased  and  the  gold  dollar  became  the 
unit.  This  coin  contains  25.8  troy  grains  of  standard  gold,  nine-tenths 
fine.  The  real  gold  dollar,  therefore,  is  23.22  troy  grains  of  fine  metal 
which  is  our  [present  money  unit,  by  and  upon   which  all  our  foreign 


432  TBS  nwAvoiAL  qmamorn*  [JPffwilr, 

•zohanges  are  reckoned.  Bat  our  currency  nnit,  for  aD  pnrpoeea  but  the 
payment  of  dutiea  on  impoits  and  intereat  on  the  public  debt^ia  thed<^ 
greenback,  which  is  eaaentially  a  paper  token.  Tbna  wehaTetwoBeptrato 
legal  dollars,  one  of  money  and  one  of  debt. 

Since  1868  our  silver  dollar  has  been  coined  only  in  faalves  of  19S 
grains  each,  making  a  reduction  of  about  8  per  cent  from  the  weight  and 
value  of  the  mint  dollar  of  1792.  But  in  Europe  the  variations  of  the 
dollar  have  been  much  greater  than  in  the  United  States,  except  that  it  n 
there  alvrMys  made  of  silver.  In  Germany,  ita  birth  place,  where  ila  origi- 
nal weight  was  an  ounce,  its  contents  in  pure  silver  vary  in  different  loeaK- 
ties  from  252.0  to  271.8  grains,  the  standard  metal  being  alloyed  vari^nttlji 
so  tliat  by  our  gold  standard  it  is  valued  at  70  to  75  oenta^  In  Pnasia 
the  r/ia/fr,  or  dollar,  of  full  weight  contains  842^  grains  of  standard  rilven 
alloyed  26  per  cent.  In  Italy  the  ialUro^  the  Italian  dollar,  weighed  454 
grains,  and  was  alloyed  40  per  cent.  I  believe  thia  coin,  like  tbeoM 
Spsnirh  dollar,  is  out  of  circulation.  Enough  ia  here  presented  to  show 
that  the  dollar  is  a  creature  of  government  and  not  of  commerce ;'  that  it 
is  subject  to  the  most  aibitrary  alterationa  by  Princes  and  legislators  who 
are  wholly  ignorant  of  the  effect  of  their  measures,  ignorant  of  the  nators 
of  money,  of  6nancial  science  and  of  political  economy  altogether. 

More  obscurity  in  political  economy,  and  more  confusion  to  oommercf, 
result  from  the  ignorance  and  folly  of  governments  all  over  the  world  ia 
separating  the  unit  of  money  from  the  unit  of  weight,  and  tampering  with 
the  money  unit,  under  the  notion  that  they  regulate  commerce  and  the 
value  of  money  thereby,  than  from  all  other  causes.  Instead  of  r^nla- 
tion,  every  such  act  is  disturbance ;  the  only  regulation  in  the  power  of 
government  being  that  of  prevention,  which  shall  prevent  individuals  and 
corporations  from  disturbing  the  normal  value  of  money  with  a  ftise 
currency  in  msking  credit  in  notes  and  deposits  without  value  received  and 
in  counterfeiting. 

Now  let  ua  consider  what  is  money  1  Money  is  a  matter  of  commerce 
independent  of  government.  It  existed  before  government,  and  records 
of  its  use  appear  in  the  dawn  of  history.  It  is  a  commodity  which,  before 
it  was  tampered  with  by  Princes  to  cheat  th«^ir  creditors,  circulated  and 
was  exchanged  by  the  same  unit  of  weight  as  nther  ponderable  snbstaa- 
ces.  1860  years  before  Christ  '* Abraham  weighed  to  Ephron  fonr  hundred 
shekels  of  silver,  current  money  with  the  merchant," in  exchange  for  the 
cave  of  Machpelab.  The  shekel  was  an  ordinary  Jewish  weight  equal  to 
about  half  an  ounce  avoirdi-pois,  having  no  more  relation  to  money  than 
to  any  other  commodity  that  circulated  by  weight  Every  one  knows  that 
the  British  pound  sterling  contained  originally  a  pound  weight  of  ailTtf, 
and  so  did  the  French  livre* 


1860]  «i^  ntriNCtAL  ^uuTfoir.  428 

•  ^^ 

From  the  Conquest,  a.i>.  1000,  to  the  28th  of  Edward  I,  ▲.o.  1300, 

the  pound  weight  of  silver  was  coined  into  the  pound  sterling,  rather 

more   than   11  12ths  fine.    That  i?,  the  poand  sterlinfir  contained   11 

ounces  and  2  dwts  of  fine  silver,  and  22  dwU  of  alloy.    Under  this  King, 

in  the  latter  year,  the  first  depreciation  appears  when  the  pound  of  silver 

wa^  coined  into  £1  Os  Sd  ;  but  in  the  reign  of  Edward  lir,  a.d.  1344  to 

1350,  the  depreciation  was  extended  to  20  per  cent,  the  pound  of  silver 

still  of  the  same  fineness,  being  coined  into  £1  6s,  so  that  25   shillings 

were  degraded  to  the  original  value  of  20  shillin«r».    Gradually,  until  the 

fiAh  of  Edward  YI,  a  further  depreciation  took  place  when  (A.n.  1551) 

it  reached  its  climax,  the  fineness  of  the  silver  being  reduced  to  3  ounces 

in    the  pound   weight,  and  tbe  debased  metal   was  coioed  into  £3  12s. 

Both    these   measures   of  depreciation  reduced  the  value  of  the   pound 

sterlinir  eleven  twelfths  from  tliat  of  the  original  pound  sterling  or  pound 

of  siver,  leaving  to  the  new  coin   of  one  pound   but  the  original   value 

of  Is  8d. 

It  seems  that  the  sum  of  £120.000  only  itras  so  coined,  and  in  the  same 
jeat  the  standard  was  raised  to  11  ounces  of  fine  silver  to  the  Troy  pound. 
This  pound  of  standard  metal  ll-]2ths  fine  whs  then  coined  into  £3.  It 
is  remarked  in  James'  essays  that  ^Hhe  coinage  of  debased  silver  money 
in  the  fifth  year  of  Edward  YI  of  3  oz.  fino  ought  more  properly  to  be 
considered  as  tokens,"  which  is  very  true,  but  it  should  be  understood 
that  all  coins  are  tokens  and  not  money,  so  far  as  they  consist  of  base 
tnetal.  The  nlloy  is  always  reckoned  of  no  value,  and  as  that  which  is  of 
no  value  will  purbhase  nothing,  and  make  no  payment,  the  alloy  in  coin  is 
not  money  since  money  is  a  universal  purchasing  and  paying  power. 

During  all  these  years,  from  the  Conquest,  or  at  least  from  the  reign  of 
Edward  I,  the  notion  prevailed  that  the  wilt  of  tte  Sovereign  determined 
what  should  be  money,  and  what  should  be  the  value  of  money,  by  the 
name  of  the  unit.  Calling  a  thing  a  pound  sterling  by  authority  was 
supposed  to  secure  a  uniform  value  under  all  its  variations  of  weight  and 
quality. 

The  world  has  pretty  thoroughly  outgrown  this  foolish  notion,  but  not 
quite.  There  are  yet  people  in  this  country,  of  pretensions  to  scientific 
knowledge,  who  believe  that  Congress  can  by  enactment  determine  that 
any  thing  which  it  i  hooses  to  call  ^*  a  dollar,''  to  be  paid  and  received  as  a 
dollar,  »hall  have  the  value  of  a  dollar  of  gold  coin  containing  23.22 
grains  of  fine  metal,  in  which  all  the  value  of  the  dollar  lies.  This  non-» 
sense  comes  of  the  absurd  custom  of  making  and  continuing  a  unit  of 
monej  that  is  not  a  common  and  familiar  unit  of  weight,  like,  for  example 
the  Troy  or  avoirdupois  ounce  o*  pound. 

Here  let  me   remark,  episodically,  that,  if  we  in  this  country  are  to 


4&4  TBB  viKAKoui.  QUXBixov.  [Dtfonkr, 

adopt  the  French  metrical  system  of  weights  and  measures,  as  I  tmai  and 
believe  we  shall  at  no  distant  daj^  it  is  to  be  hoped  that  we  shall  have 
nothing  to  do  with  the  franc  as  the  unit  of  money*  bat  oome  at  ones  to 
the  gramme  coined  in  gold,  since  the  gramme  is  the  French  noit  of 
weight.  The  gramme  equals  1  j*/^  English  Troy  grains ;  heneo,  if 
alloyed  one-tenth,  like  the  present  Federal  and  French  money,  it  woold 
make  a  coin  equal  to  59,  ,y^  (4  our  present  gold  dollar  or  nearly  sixty 
cents.  To  avoid  the  inconvenience  ot  having  so  small  a  coin  solid,  it 
should  be  made  and  ex}>anded  in  a  ring.  As  in  any  absolate  change  of 
the  unit,  a  fraction  for  reckoning,  in  the  translation  from  the  old  to  the 
new  currency,  is  unavoidable,  we  may  as  well  have  one  fraction  as  another ; 
and  the  sooner  we  get  rid  of  the  corrupted,  blinding,  prepoataron%  and 
unmeaning  dollar  the  better,  if  we  can  have  the  plain  unit  of  weight^ia 
gold  in  its  place. 

To  return  now  to  our  immedia'e  inquiry:  What  is  money!  it  is  neces- 
sary to  say  thac  iti  every  alteratio  i  of  the  coinage  of  England,  before  the 
establishment  of  the  Bank,  geneial  prices  rose  and  fell  to  a  correspond- 
ing degree;  rising  with  the d  t|reciation,and  fall  ng  witli  the  appreeiatioa 
in  quality  of  the  unit,  only  excepting  variations  arising  from  the  difference  in 
the  quantity  of  other  circulating  capital,  such  as  the  fullness  or  scarcity  <f 
crops  and  pr  k1  notion  gene  B\>y,  The  alterations  f  the  coin  in  Eogtaod 
have  been  great  enough,  as  I  have  already  sh  iwn  to  mark  this  feature 
distinctly :  and  the  proof  is  plain  that  money  is  pure  unwrought  goM 
and  silver,  and  nothing  else,  diiferini^  t'  om  bullion  only  in  the  allor  ot 
impurity  of  the  metal,  which  must  be  eliminated  to  determine  the  quantity 
of  money  it  contains. 

As  has  been  rem  ^r  :<  d  already,  the  world  has  pretty  thoroughly  out- 
grown the  notion  that  the  fiat  of  the  Sovereign  can  dete  mine  the  value 
of  money  by  operating  upon  the  unit  and  debasing  the  coin  ;  but  it  has 
only  begun  to  see  that  the  value  of  mon  yen  be  immediately  and  dis- 
astrously disturbed  by  abnormal  bank  g,  which  operates  directly  npoa 
the  currency,  as  well  as  b}  th<^  paper  issues  of  government.  This  is  as 
evil  infinitely  worse  than  d>^basiog  the  coin  directly,  because  it  amonnts 
to  a  debasement  of  the  coii^  in  effect,  and  a  loss  of  capital  into  the  bar- 
gain. 

By  debasing  the  coin  directly,  g  vernment  gets  the  advantage,  as  a 
debtor,  for  the  difference  between  the  new  and  the  old  unit,  by  paying 
a  less  quantity  of  money  than  its  debt  was  contracted  in,  and  it  give^  to 
every  other  debtor  the  same  unjust  advantage  over  his  creditor.  Bal 
here  the  mischief  ends;  no  loss  of  national  capital  results  therefrom 
because  the  fort^igner,  ^  ho  sells  goods  to  us,  must  accept  the  debased  coin 
which^he  can  exchii  ge  only  for  its  true  equivalent  in  the  less  qnantiiy  of 


I860J  THB  nvANCXAL  QUKSTION.  425 

gold  or  mercfaandise  for  export.  Whereas,  when  debt  is  converted 
into  currency,  either  of  notes  or  deposits,  the  sum  thus  added 
to  the  previous  currency  is  as  complete  a  debasement  of  its  value  as 
would  be  the  addition  of  a  like  proportion  of  base  aoetal  to  the  coin. 
The  foreigner  accepts  the  debased  currency  for  hi»  goods,  and  immediately 
exchanges  it  for  gold  at  par  for  its  full  amount,  thiough  the  convertibility 
of  the  bank  notes  and  deposits,  end  the  loss  by  the  debasement  is  thrown 
wholly  upon  ourselves. 

I  am  indebted  to  no  authority  for  this  doctrine ;  it  is  self-evident  in  my 
opinion.  Through  some  leading  mind  it  will  some  day  enlighten  Conij^ress 
and  make  a*7  end  of  **  paper  money  ^  in  this  country.  Long  after  I  had 
presented  it  in  this  magazine  I  discovered  that  it  was  maintained  by 
Adam  Smith,  aHhough  in  direct  contradiction  of  the  **paper  money"  theory 
which  he  seems  to  have  contrived  as  an  apologist  of  the  system  of  the 
Bank  of  England.  In  the  Wealth  of  Nations^  Book  4,  Chapter  5,  on 
Bounties,  he  says : —       ^ 

*'  That  degradation  in  the  value  of  silver,  which  is  the  effect  of  the 
fertility  of  the  mines,  and  which  operates  equally,  or  very  nearly  equally, 
through  the  greater  part  of  the  commercial  world,  is  a  matter  of  very 
little  consequence  to  any  particular  country.     *         *         *        *         *j» 

**But  that  degradation  in  the  value  of  silver,  which,  being  the  effect 
either  of  the  peculiar  situation,  or  of  the  political  institutions  of  a  par- 
ticular country,  takes  place  only  in  that  country,  is  a  matter  of  very 
great  consequence,  which,  far  from  tending  to  make  any  body  really  richer 
tends  to  make  everybody  really  poorer.  The  rise  in  the  money  price  of 
all  commodities,  which  is  in  this  case  peculiar  to  that  country,  tends  to 
discourage  more  or  less  every  sort  of  industry  which  is  carried  on  wituin 
it,  and  to  enable  foreign  nations,  by  furnishing  almost  all  sorts  of  goods 
for  a  smaller  quantity  of  silver  than  its  own  workmen  can  afford  to  do,  to 
undersell  tbem,  not  only  in  the  foreign,  but  even  in  the  home  market." 

This  is  directly  in  conflict  with  the  teaching  in  other  parts  of  his  book, 
that  *'  paper  money "  can  be  made  to  economize  the  precious  metals 
through  the  operations  of  banking,  since  the  paper  or  bank  credit,  on  its 
introduction  or  its  increase,  must  be  an  addition  to,  and  consequent  local 
degradation  of  the  value  of  the  pre  existing  currency,  including  silver,  of 
course.  The  Wealth  of  Nations  is  made  up  of  disconnected  lectures ; 
the  author  seems  to  have  altered  his  opinion  at  times,  and  to  have  forgot- 
ten at  one  time  what  he  said  at  another  in  relation  to  money. 

But  an  older  and  a  better  authority  on  this  point  than  Alam  Smith  has 
recently  been  brought  to  my  notice  by  a  controversy  in  the  London  Times. 
In  1757  Joseph  Harris,  then  master  of  the  mint,  wrote  an  Essay  on 
Monsy  and  Coins,  in  which  my  doctrine  is  set  forth  better,  perhaps,  than  I 


426  T01  VXHAKCIAI.  QUtflTIOF.  [DfCfwIr, 

can  do  it  mjself.  McCulIoch,  the  economist,  wbo  procured  the  refmbGct- 
tion  of  lbT8  book  by  the  Political  Econoinj  Oiub  in  1S56,  describei  it 
*'  as  one  of  tbe  best  and  most  yaltiable  treatises  that  has  ever  seen  the 
ligbt."    Mr.  Harris  says ; 

''Supposing  tbe  sum  tota]  of  money,  real  and  fiotitiona,  now  aoonal]y 
cifculating  in  tbis  country,  to  be  100  millions  ;  20  millions  of  which  is  is 
casb,  and  the  rest  in  paper  credit  botli  public  and  private.  If  this  paper 
credit  be  increased,  by  tbe  creating  of  more  bills,  suppose  to  the  aroonotof 
ten  millions;  one  of  the  following  will  necessarily  be  the  consequeaee: 
Either  all  our  commodities  will  ri^e  ten  per  cent  in  their  nominal  valoe, 
which  will  render  them  too  dear  for  foreign  markets;  or  this  addition  will 
drain  away  ten  millions  of  our  cash,  and  so  impoverbh  us  in  reality  to 
that  whole  amount ;  or  tbe  efiect  mo&t  likely  will  be  partly  the  one^  and 
partly  the  other;  but  whichever  it  is,  the  nation  will  be  equally  damaged. 
May  this  be  ever  a  caution  to  statesmen,  how  they  listen  to  projects  that 
must  clog  our  trade,  banish  our  coin,  and  in  the  end  bring  on  general 
.  bankruptcy." 

Nothing  can  be  plainer  than  this ;  bnt  it  Is  only  a  better  ntteranoe  of 
the  same  doctrine  that  I  have  held,  and  expressed  in  these  pages^  for  maay 
years. 

Our  true  financial  policy  then,  is  to  abolish  the  fictitious  money,  or 
credit  in  currency,  altogether,  and  thus  maintain  the  highest  possible 
value  of  money,  so  that  we  may  produce  and  buy  cheap  and  sell  dear.  Higher 
than  the  value  of  gold  in  the  markets  of  the  world  we  cannot  keep  it  if 
we  would,  because  gold  will  accumulate,  both  by  production  and  import, 
the  moment  its  purchasing  and  paying  power  is  appreciably  greater  hero 
than  elsewhere.  Let  us  so  regulsto  the  value  of  money  as  to  restore  it  to 
its  natural  position  as  a  commodity,  and  thereby  so  regnlate  commerce 
that  we  may  produce  commodities  more  abundantly,  as  well  aa  cheaper, 
build  ships  and  sail  them  cheaper,  than  the  nations  of  Europe  who  use  a 
paper  or  bank  currency,  and  thus  we  can  easily  take  the  lead  of  the 
commerce  of  the  world. 

As  to  the  pretence  that  a  bank  currency  payable  in  coin  on  demand, 
without  coin  in  reserve  dollar  for  dollar  to  cover  and  pay  it,  can  be  limited 
to  the  natural  sum  of  money  that  would  circulate  without  it,  which  is  the 
theory  of  Adam  Smith,  in  which  he  oontradicta  himself,  it  is  a  proved 
impossibility.  And,  if  it  were  not  an  impossibility,  it  must  always  bo 
an  absence  'and  a  loss  of  capital,  as  the  fore^roing  illustration  of  Mr. 
Harris'  demonstrates,  and  as  I  think  I  have  demonstrated  over  and  over 
again  in  this  magazine. 

Of  the  5  20  bonds  I  have  already  spoken.  It  is,  I  think,  a  qaibUe  to 
deny  tl.at  thev  can  be  legally  and  justly  discharged  in  greenbaeks,  hat  it 


860]  THB  VINANOIAL  qUSBTlOS.  427 

would  be  madneas  to  do  this  by  a  new  and  farther  issue  of  greenbacks, 
since  it  would  involve  such  a  degradation  of  their  purchasing  power,  and 
consequent  rise  of  prices,  as  would  eventually  dif^graoe  and  sink  them^ 
and  the  national  debt  with  them,  in  the  hands  of  their  ho1den»,  after  the 
manner  of  the  French  assignats.  No  such  extreme  depreciation  of 
currency  will  be  long  endured  by  an  intelligent  people.  And  the  loss  of 
the  national  debt  would  thus  fall  almost  entirely  upon  the  working  classes, 
who  cannot  afford  to  be  idle  and  reject  the  current  circulation. 

Bat  if  new  gold  bonds  bearing  a  lower  jate  of  interest,  say  4  or  4^  per  cent, 
can  be  sold  at  par  for  the  existing  currency,  as  many  persons  suppose, 
then  surely  government  ought  to  accept  the  opportunity  and  retire  the 
five-twenties.  I  confess  to  great  doubt  on  this  point,  because  it  is  not  a 
question  of  national  credit,  but  of  the  rent  of  capital  in  this  country. 

In  England,  where  the  proportion  of  capital  to  the  demand  for  its  use 
is  greater  than  here,  and  the  currency  is  always  better,  because  containing 
more  of  the  element  of  capital,  and  less  of  debt,  4  per  cent  per  annum, 
offem  a  desirable  investment,  the  average  rate  there  being  3  per  cent. 
But  here,  where  a  vast  extent  of  new,  rich,  and  cheap,  land  in  market, 
and  vigorous  young  enterprise,  with  a  currency  of  debt  built  upon  debt, 
are  pressing  upon  a  comparatively  limited  supply  of  capital,  6  or  7  per 
cent  per  annum  is  its  needful  rent  on  good  securities.  It  is  not  easy, 
therefore,  to  understand  why  anybody  sbould  lend  us  capital  at  4  or  4^ 
per  cent,  even  on  government  bonds.  Should  Congress  try  the  experi- 
ment, and  succeed,  I  shall  be  very  glad  to  admit  that  my  political  econo- 
my is  so  far  at  fault. 

Loanable  capital  is  chiefly  home-staying,  consisting  of  goods  sold  on 
short  credit,  the  value  of  which  the  owners  cannot  well  part  with  for  long 
periods,  and  of  money  which  does  not  run  abroad  to  a  higher  rent  of 
capital,  because  its  rent  is  high  only  where  it  is  scarce,  and  where  capital 
in  general  is  scarce  it  is  of  course  dear  in  exchange  value,  which  is  the 
same  thing  as  saying  that  money  is  cheap ;  that  is,  goods  command  high 
prices.  Money  does  not  go  or  stay  where  it  is  cheap  any  more  than 
other  capital.  TIence  capital  in  goods  runs  to  California,  but  money  ruus 
the  other  way,  although  the  rent  of  capital,  or  rate  of  interest,  in  Califor- 
nia is  from  18  to  24  per  cent  per  annum  on  good  securities. 

We  are  always  sure  of  having  all  the  foreign  capital  in  goods  that  we 
can  consume  in  this  country,  because  our  financial  system  which  makes 
money  cheap  makes  goods  dear.  The  capitalists  who  take  and  hold 
foreign  loans  in  Europe  pay  the  shippers  of  goods  that  are  sold  to  us ; 
bui  in  every  country  &uch  men  are  but  a  small  minority  of  the  people,  and 
they  hold  or  own,  comparatively,  but  a  small  proportion  of  the  capital, 
mo€t  of  it  being  actively  employed  at  home. 


428  Tn£  RECirnociTr  mov£Msnt  ik  cahida.         [Deemher^ 

JhowevfrT^  CorgreRs  vill  tax  out  of  existence  the  fictitioiu  bank  cor* 
rency  of  notes  ancl  <le[otits,  fund  the  greenbacks,  and  tbtis  give  to  mdos- 
try  and  comnifrce  the  opi'OTtunhy  to  add  to  the  capital  of  tbe  country  i 
currency  of  money,  which  the  people  and  the  banks  can  use  in  place  of 
tie  present  incubus  of  ilelt.  the  rent  of  capital,  or  rate  of  interest,  will 
fall  njaterinlly,  if  not  as  low  as  it  is  in  England.  We  can  then  not  only 
manage  the  national  debt  v  ith  ease,  but  as  I  have  already  said  coromaiHl 
the  commerce  of  the  world. 

These  are  my  candid  and  carefully  considered  viewa  of  the  finandtl 
question. 


'^>^t^^^*^^^*m0^i^>^^m^^^0^t^^f^^^0^^t*0*^ 


THE  BECIFSOCITI  MOTEHENT  IN  CANADA. 

As  far  as  any  practical  benefit  to  tbe  people  ( f  British  Nortb  America 
is  concerned,  the  confederation  of  the  several  Provinces  under  one  goverti- 
ment  has  proved  a  failure.  Even  Canada  has  derived  but  little  advantage 
if  any,  from  her  union  with  the  Maritime  Provinces;  and  the  desire  for 
independence  which  has  always  characterized  the  thrifty  and  iodostrioos 
people  of  ISTova  Scotia  and  New  Brunswick,  has  assumed  the  form  of  a 
popular  movement,  numbering  among  ita  most  earnest  advocates  maoy 
of  those  in  whose  interest  the  Act  of  Confederation  was  framed.  Eveiy* 
thing  is  tending  towards  apolitical  revolution  that  is  to  mark  the  beginniog 
of  a  new  era  of  prosperity  and  progress  for  the  States  north  of  os. 
During  tbe  past  twelve  months  public  sentiment  in  Canada  on  the  subject 
of  allegiance  to  tbe  British  Crown  has  undergone  a  marked  change. 
Until  quite  recently  it  required  no  small  degree  of  courage  to  express  an 
opinion  as  to  the  desirability  of  a  final  and  complete  separation  of  tbe 
colonies  from  the  mother  country,  and  tbe  bold  utterances  of  those 
vho  reprfsented  public  sentiment  in  Nova  Scotia  and  New  Brunswick 
were  denounced  as  treasonable.  The  people  are  now  impressed,  bow- 
ever,  with  the  fact  that  the  question  of  independence  ia  not  a  qnestioo  oi 
loyalty  or  disloyalty  to  the  Crown,  but  a  problem  in  practical  statesman- 
ship, of  an  economical  rather  than  political  nature. 

The  comparison  between  the  material  wealth  and  prospcritj  of  their 
country  and  the  United  States,  so  unfavorable  to  themselves,  has  led  them 
to  consider,  seriously,  whether  any  advantage  may  be  hoped  for  from  a 
perpetuation  of  British  institutions  and  British  rule.  They  have  seen  that, 
in  proportion  to  population  and  resources,  their  canals  and  railroads,  agri- 
culture, commerce  and  manufactures  have  not  kept  pace  with  those  of  this 
country,  and  the  people  are  beginning  to  desire  a  change  thai  shall  reaalt 
in  independence  of  England  and  free  trade  with  the  United  States.    It 


ISdO]  TH«  RX0IFR00IT7  HOVXMBNT   19  CANADA.  439 

was  partly  to  meet  tbese  requirements,  essential  to  the  prosperity  of  tbe 
Provinces,  that   the  present  Confederation  was  foraged.    The  promoters 
of  this  scheme  believed  that  it  would  lead  to  the  establishment  of  a  flour- 
ishing  trad«  between  the  Maritime  Provinces  and  Canada,  as  well  as  with 
other  countries.     These  promises,  however,  never  have  been  and  never  can 
be  realized.     Both  are  agricultural,  and  their  products  must  seek  the  same 
market    The  exchange  of  commodities  between  Canada  and  the  lower 
Provinces  in  1865  did  not  amount  to  4  per  cent  of  the  trade  of  the  former, 
while  in  1860  the  proportion  did  not  reach  5  per  cent.    This  trade  has 
increased  very  little  under  the  Confederation,  and  the  returns  for  1868 
show  that  the  exports  during  that  year  from  the  Canadas  to  Newfound- 
land and  Prince  Edward's  Islan  1  were  were  scarcely  2  per  cent  of  their 
trade.     At  the  same  time,  the  exports  from  Canada  to  the  United  States 
notwithstanding  the  high  tariff  of  duties  established  bj  our  government 
amounted  in  value  to  twenty-two  million  dollars — ^more  than  half  of  her 
entire  export  trade,  which  is  estimated  at  forty-two  millions.    The  same 
dbparity  is  also   notable  in  the  statistics  of  the  trade  of  the  marilime 
Provinces  for  1868.     The  small  and  unimportant  trade  of  Nova  Scotia 
with  Canada,  for  example,  shows  the  folly  of  seeking  to  protect  k  at  the 
expense  of  her  trade  with  the  United  States  and  Europe.    In  1866  the 
value  of  the  exports  of  Nova  Scdtia  to  the  United  States  was  $3,228,559  • 
to   Great  Britain  and  other  countries,  $287,884^     It  is,  of  course,  evident 
from  this  statement  that,  as  compared  with  the  United  States,  England 
affords  no  market  for  Nova  Scotia ;  and,  with  the  exception  of  lumber,  the 
same  may  be  said  of  New  Brunswick  and  Prince  Edward's  Island.    These 
facts,  showing  as  they  do  that  the  United  States  are  the  largest  customers 
of  the  Provinces  and,  for  much  that  they  have  to  sell,  their  only  cusLomers, 
are  the  basis  of  the  present  movement  in  the  Dominion  for  the  establish- 
ment  of  reciprocal  free  trade  relations  with  this  country. 

In  the  discussion  of  the  questions  growing  out  of  the  proposed  changes 
in  the  government  of  the  provinces,  considerations  of  a  purely  political 
nature,  are  properly  regarded  as  of  secondary  importance.  That  which 
will  most  conduce  to  the  development  of  the  country  and  the  prosperity 
of  the  people  is  the  object  sought.  Whatever  may  have  been  the 
advantages  derived  from  the  allegiance  of  the  people  of  Canada  to  the 
British  crown  in  former  years,  the  time  is  past  when  any  further  benefits 
may  be  expected  to  result  from  it.  The  civilization  of  the  British  North 
American  Provinces  is  no  longer  primitive,  in  any  sense.  With  a  territory 
covering  an  area  of  8,097,174  square  miles,  rich  in  undeveloped  natural 
reaources,  and  a  population  of  nearly  four  millions.  The  Provinces  not 
only  claim  the  ability  to  govern  themselves,  but  insist  that  s.^lf  govern- 
ment is  essential  to  the  prc^perity  of  the  country.    The  rapid  growth  and 


430  TBI  BBOiPBOonY  MOTBiuuiT  XV  OAiTAiuu         [Dcvfafar, 

progr«68  of  tbe  AmdHcan  Republic,  during  less  than  a  eentuiy  of  iod^ 
pendence,  furnishes  the  strongest  argument  in  support  of  tbn  assenion. 
The  confederalion  of  the  Provinces  under  one  gorernment  waa  astepia 
this  direction,  but  the  measure  has  proved  insufficient.  It  is  true  tkst 
all  restrictions  upon  trade  between  the  Provinces  are  removed,  bat  the 
advantages  derived  from  this  are  only  proportionate  to  tbe  limited 
increase  in  the  population  of  tbe  coantrj.  To  give  an  impetus  to  the 
development  of  their  industrial  and  commercial  resources,  two  thia<^  are 
needed — independence  of  England  and  free  trade  «ith  the  United  States 
for  agricultural  and  other  products,  and  for  eertain  manufactured  articles 
which  here  find  a  market.  Until  the  former  is  established  it  is  not  proba* 
ble,  in  the  opinion  of  the  people  of  the  Provinces,  that  our  government 
will  agree  to  the  latter ;  and  absolute  independence  of  Great  Bntsia 
is  therefore  demanded  as  a  commercial  rather  than  a  political  necesaty. 

For  many  reasons  this  movement  should  meet  with  encoarageiaeDt 
and,  as  far  as  practicable,  co-operation  on  the  part  of  the  people  of  ths 
United  States.     Under  the  existing  tarifi^  the  revenues  acoruing  to  the 
government  from  our  trade  with  British  America  do  not  exceed  $4,000,- 
000  and  the  sum  is  of  small  importance  compared  with  the  advanta^ 
to  be  derived  from  reciprocal  trade  between  the  two  countries.     Since  the 
expiration  of  the  reciprocity  treaty  our  trade  with  British  North  America 
has  diminished  year   by   year,  until  but   little  remains  of  oar  former 
exchange  of  produce  and   merchandise  which,  in  1863,   amounted  in 
value  to  nearly  fifty  millions.    Under  that  treaty  the  great  bulk  of  tbe 
breadstuff^  product  of  the  lower  provinces  found  its  way  to  tbe  seaports 
of  the  Eastern  and  Middle  States,  affording  a  profitable  businesa  to  our 
railroads  and  shipping.    Since  its  expiration  this  trade  has  died  oaL    What 
ha^  been  lost  to  New  York  and  other  American  ports  has  been  gained 
by  Montreal.    The  receipts  of  wheat  at  that  city  during  the  present  season 
exceeded   those  of  last  year  by  331  per  cent.;  while  the  exporu  to 
Europe  by,  ^ay  of  the  St.  Lawrence,  will  exceed  that  of  last  jear  by  6^1 
per  cent     Fiom  sharing  any  of  the  profits  or  advantages  of  this  trade, 
the  forwarders  and  shippers  of  the  United  States  are  now  excluded.    la 
addition  to  this,  large  amounts  of  lumber  and  other  valuable  prodacta  are 
now  directed  from  their  natural  and  proper  course  to  the  seaboard.    Tbe 
benefits  of  a  reciprocity   that  shall  rtiopen  the  former  channels  of  trade, 
and  revive  the  business  once  mutually  advantageous  and  profitable,  are 
fully  appreciated  by  the  practical  men  of  both  countries.    We  need  the 
coal,  gypsum,  fiith  und  lumber  of  the  Maritime  Provinces,  and  the  live 
stock,  breadstuffs  and  general  produce  of  Canada,  both  for  consnmption 
and  export.    They,  in  return,  will  take  our  manuiactures,  besides  receiv- 
ing a  considerable  share,  at  leas^,  of  these  importations  from  other  oountriea 


1869]  VLOATINQ  OAPiTAL  AND  liKW   LOANS.  431 

through  our  porta.  More  than  this,  it  is  of  the  utmost  importance  that 
the  transportation  routes  of  both  countries  should  be  mutually  free.  One 
great  obstacle  in  the  way  of  our  more  rapid  commercial  development  is 
the  enormous  cost  of  transportation  from  the  West  to  the  seaboard. 
The  fullest  competition  between  the  railroads  and  canals  of  both  countries, 
is  the  best  possible  means  by  which  to  obtain  control  of  the  European 
markets  as  an  outlet  for  our  surplus  products.  The  inadequacy  of  the 
railroads  and  canals  of  the  Eastern  and  middle  States,  dependent  as  they 
are  on  the  M*cbigm  Central  and  Michigan  Southern  railroads,  as  the 
only  connecting  link  with  the  railroad  system  of  the  northwest,  and  the 
consequent  delays  and  expenses  attending  the  Eastward  movement  of 
produce  and  ihe  distribution  of  merchandise  throughout  thn  interior,  make 
the  question  of  reciprocity  one  of  vital  practical  importance;  the  true 
soluiion  of  which  can  only  be  found  in  the  establishment  of  free  commer- 
cial intercourse  between  the  two  counlrie?. 

It  is  probable  that,  in  some  form,  the  question  of  reciprocity  with  Canada 
will  be  brought  up  during  the  next  session  of  Congress.  If  so,  we  hope 
the  movement  now  organized  in  Provinces  will  be  met  with  a  disposition 
on  our  part  to  accede  to  renew  the  relations  formerly  existing  between 
the  two  countries.  Whatever  may  be  the  ultimate  political  destiny  of 
British  North  America,  it  is  certain  that  the  discussion  of  any  scheme  of 
annexation  is  ill  advised  and  premature.  The  people  of  the  Provinces 
do  not  desire  it,  nor  would  it  be  the  policy  of  our  government  to  accede 
to  such  a  proposition  at  the  present  time,  even  if  it  were  made  in  good 
faith,  and  with  the  unanimous  consent  of  the  people.  Indefinite  territorial 
expansion  is  not  the  aim  of  true  stateemanship,  but  reciprocal  trade  reia> 
tioDs  are  highly  impottant  to  both  countries. 


FLOlTINfi  CAPITAL  AND  HEW  LOINS. 

Nothing  more  clearly  indicates  the  change  which  has  been  slowly  taking 
place  in  the  minds  of  the  people  as  to  their  capabilities,  financially,  tlian 
the  large  amount  of  loans  put  upon  our  market  during  the  past  four 
years.  Previous  to  the  war  if  money  was  to  be  raised  by  a  railroad  or 
by  a  city  or  town,  in  most  cases  an  agent  was  at  once  dispatched  to  Eu<*ope 
to  neguiate  the  bonds.  The  idea  that  our  own  market  could  absorb  any 
considerable  quantity  of  such  securities  was  not  entertained.  Other 
eondusionsy  however,  were  forced  out  of  us  during  the  early  days  of  the 
If  ar  by  the  refusal  of  Europe  to  take  our  bonds.    We  were  thus  compelled 

8 


434  riOATINO  CAPITAL  AVD  HEW  LOANS.       [i)«flll&f, 

road  construction  are  raised  from  the  negotifttion  of  company  bonds,  tbe 
balance  being  obtained  from  atock  subscriptions  or  from  tbe  aid  ^veo  bj 
States,  cities,  counties^  &c.,  involving  the  issue  of  their  own  obltgatioBSi 
and  thus  placing  tbe  same  amount  of  securities  upon  the  market,  differing 
merely  as  to  the  parties  ultimately  responsible.  As  we  find,  then,  ibt 
the  bonded  debt  of  railroad  and  other  companies  negotiated  io  dt 
peiiod  named  is  $250,000,000,  the  total  amount  of  obligations  of  the^ 
descriptions  issued,  and  taken  by  the  people  in  one  form  or  another,  must 
have  been  at  least  1500,000,000.  During  the  same  time,  also,  the  fboded 
debt  of  the  United  Slates,  including  the  issues  of  Pacific  Railroad  Bondcs 
and  iTvithout  regard  to  the  cash  in  the  Treasury,  was  increased  $76,640,< 
801  between  the  first  of  June  1865  and  first  of  June  1869,  making  the 
total  amount  of  new  securities  negotiated  in  the  country  during  that  time 
about  $576,000,000. 

It  these  totals,  showing  such  large  absorption  of  floating  capital,  con- 
stituted the  only  fact  affecting  the  question,  the  situation   would  indeed 
justify  much  of  the  apprehension  felt  among  certain  classes.     But  there 
are  very  many  evident  and  important  considerations  requiring  a  modi, 
fication  of  the  conclusion  thus  drawn.     Of  course,  so  far  as  the  absorp. 
tion  of  these  bonds  and  other  evidences  of  debt  represent   a  mere 
change  of  securities,  no  harm  need  be  anticipated;  the  same  may  he 
said  also  if  much  of  this  money  has  been   borrowed    from    £un>pe 
indirectly  through  New   York,  rather  than  directly  through  London ; 
and  on  examination  such  will  be  found  to  be  the  true  facts  of  the  cise. 
The  amounts  of  city,  county  and  town  obligations  issued  for  war  par* 
poses,  and  which  have  been  paid  off  during  the  four  years,  is  very  cod- 
siderable.   In  this  State  alone  these  securities    have    decreased  rasDy 
millions.    So,  too,  several  hundred  millions  of  United  States  and  rail- 
road bonds  have,  during  the  same  period,  been  taken  by   Europe,  and 
in  return  European  capital  has  been  poured  in  here.     This  has,  tu  be 
sure,  come  to  us  in  the  shape  of  goods  and  raw  material,  but  is  none 
the  les3  capital,  much  of  which,  we  h»ve  turned  into  money,  and  thus 
increased  our  ability  to  absorb  bonds.     Wc  borrow  of  Europe;  bet 
as  we  do  it  through  New  York,  the  eommisslocs  are  saved  to  the 
country.    Again,  the  Governitaent  has  lately  been  a  heavy  purchaser 
ot  its  own  securities,  reaching  up    to  the  first  of  December,  aboiH 
75  millions,  and  this  has  given  the  people  the  means  lor  other  isTest- 
ments  to  an  equal  amount.    These^  facts,  together  with  the  further  one 
that  probably  not  over  80  per  cent,  of  the  par.  value  of  the  atcaritiei 
named  above  has  been   realized  upon    them,  shows  that   this  bead 
movement  furnishes  no  ground  for  apprehension  or  mistrust.    For  the 
purpose  of  indicating  the  price  at  which  new  loans  are  n^gotiaUd,  we 


1809]  noATIHO  CAFITAI.  AKD  XBW  LOAIIB.  433 

Kocanteiij  m  the  nature  of  .Ihe  case  allows,  tlie  iooreasa  in  Iba  funded 
debt  of  railro&d  compaDiae  ia  the  pettod  above  named : 


,KiO.I)00 

'   t,o  0,000 

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iDCreiM  1i  IT.  B.bOBlt*from 

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BsyaeKoqne-  dt  Muqattts 

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9GU,0  OiUorrrn  A  h»cx 


BalTtlo,  Undfo  d  A  P  tub.... 

Rua'io,<'<'<T<  APittsb 

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Bar.AHl'DTiBvH. 

Calir  nUPadilc 


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,.  lloj.ii.gVal.., 

Cumbar  iii'l  A  I'tniiB 

UanvlUe,  U.-h.,  -1.  itfoHn. 
Dtlrolla  Mllwankw 


B>''Bt  Tenc. 


Midland... 


M.  T.  A  O  ITS  I 

Nair  LooOOD  N 

Nortn  Fenia,...,. S7.;0oo 

Kbith  9bora.  ti  "...  ....... ..^...,  lVfi!ooc 

Noitbern  C  btr  I 1  noti  nrn 

o!»«oA%mi S!S*0 

paiaro.. AN, wark. .■.■■;;:;.■:;.";;:;  JSi'mo 

P^Q.'""at,U  "'*'"""*'' '^'*" 

Port  darim  A  Lake  Mich Ijmm 

HUa.Fl  HaiueACbIC WcnS 

HQCkAird,B.  (.  ABLLona...    ..:  9roo'uo 

Hoina,  Walcrt  A  Oideoab 6ri  p  ii 

Ht  Ji'tapb  A '  onuc.  BiDlb smnlnn. 

B..  Louie  Almmroni-Ialn.;:;;  LKSii.r 

ft.  LobiB  A  S  .  Jiiaeub 

Bl,  Lonia,  V.ud.  A  T.Hanta... 

Ot  PaulA  Pacific 

■ AFuDddDl^.... 


.   t.axt.u ' 


Dow.nA 
..uOitjA , 

■oDihweit  'adflc  Mo."" 

SoDtlieni  Mlni.gsDta    . 
TolMOiPwnac  Wanaw...,. 

loledo,  Wab.  •  We«iem 

Union  Pteiflc 

UnloD  raddc,  Ctntral  Br. 
Union  PMciacB.Div.,iow 


Wcaiem  rarj.anl,. 


376,000. 
l.^OU.Uli 

1.0I10',I>  (1 

:,ioi),iLO 
'  a,»io,(iui 


l.UiO.OI  0 

.    *,IW,MO 

I,B  O.Kfl  ■ 


VeBlarnLnlonTfllegraph ,..'.    s,«.«;o,j 

■l"!?' «"££?.?' °°''^' tswisoiT.i 

Ida  U.  tt.  iknid* T*,oi(i,a  i 

Toiii mToiTsifi 


lo  tbe  »bove  atatftmetit,  only  that  <lebl  is  included  which  was  tsaued 
ifc  novo,  and  not  Buoh  aa  nas  usued  in  exchange  fur  other  obli^tioDs  pre- 
vious!/ outdUiDding.  It  is  powible  that  in  partjoutar  cases  tbe  amount  O' 
obligations  negotiaUd  mnj  be  overstated,  but,  as  a  whol«,  [he  figures  are 
below  rather  tbau  above  the  actus]  amount  issued. 

We  hftve  made  no  account  here  of  tbe  increase  in  capital  stock,  either 
of  old  oorporatioDB  or  of  those  more  reoentl/  oiganised,  as  a  detailed 
statement  of  stock  ontotmodiog  could  hardly  be  given  nith  accnracj.  It 
may  be  aasamed,  bow«Ter,  that  about  oiM>half  odIj-  of  th«  fundi  for  nil. 


480  cnicAoo  and  altov  kuleoas.  [DicmAir, 

T!ie  Chicago  &  Alton  Company,  on  Ui  Jannarj,  1864,  aaaam^d  tht 
liability  to  pay  interest  and  dividends  on  the  bonds  and  stock  of  tht 
Joliel  &  Chicago  R.  R.,  as  below  : 

Mortence Bondfl el  htpercent  on fSW.'VI 

Stock  seren  per  cent  on 1,10(1^001 

and  acquired  by  lease  in  1 868,  possession  in  perpetuity  of  the  St  Looti, 
Jacksonville  &  Chicago  Riilroad,  at  a  minimnm  rental  of  1240,000. 
The  cliarges  on  the  property  may  therefore  be  stated  as  follows : 

PrefeTct  S  nMnj^  Bond! »• tTi,000 

Fln>t  Mor  fpif^e.  My... ». If&jm 

Incom*' Bfudi*...     72,001 

JolletnndC  ic^goleare ]tt,MI 

8l  LcnU.  Jolet  Miid  Chictgo  lease 

(Illttlmam  ronta)) SttjOQO 

Including  Sinking  Fund  payments  and  Government  tax  the  fiQancial 

condition  for  1868  may  be  stated  as  follows: 

BalRnc  1*1  the  credit  of  Income  accoant ftlins 

Netrec«i»>U « 2,015,460  tt 

Dltbanement  ae  per  tbe  Annnal  Heport.«*«... ••.••. $1,9^6 145  M 

$9^1,07  n 

Inctaded  in  the  above  disbursements  was  an  amonnt  of  $635,766  07, 
being  *'  Cost  cf  Improvements  cbarged  this  acconnt,"  so  that  io  addi- 
tion to 

Balance  at  crellt  Income  acoonnt $^4.m9 

Caabeadded    63?,'nS07 

Total  net proflta $1.68S,1I8S 

Tlie  eirnirgs  for  1869,  as  reported  have  been 

Jannar/ 1  to  Xovember  80,  pt'ft'nven f1,iT7,W1S 

"  **  frelffhtt S«8Gft.w9'» 

'•  "  maha Sit?,  MOO 


$I,S46,80 


Jl 


reeenbereerninffaeatimatcd....-^ .•. S'l^iUoOO 

Total  earninia  I860 it, iOS,»!  U 

Showing  nn  increase  in  earnings  for  1860,  of  about  $200,000. 

Assuming  the  fixed  charges  and  operating  expenses  to  be  the  same,  we 
have  the  following  result: 

O  OSB  receln*8 f  l.TO^aWll 

Bzpentv-fiameaa  hat  year 9,<6l.l$t04 

$S,»l\40^<T 
Lcaafzed  cbargea tlT.MS W 

il!&«7.96l « 

Commo   utock S,4tS,4no 

Pieened»tock $5,141  bOO 

ft  7JH»7  900 
le  per  C3rt  $756,730  00  and  5  per  cent  tax  $37,836 .'...      WW"** 

BwpJn» ^  ., , $SMOIt« 


1869]  THE  DI800UHT  UkXKVT.  437 

Now  let  as  see  how  the  case  will  stand  after  this  50  per  cent  addition 
to  the  stock :         ^ 

Theprraont  itoek  amounts  to $7«.'Mnf.tOO  OS 

Add  60 .  er  e<mt  in  eommoii  ftock 8,788,*'.00  00 

Tot^l  «*onc  !f  «6 ill.WQ.S'lO  OS 

Assiimlnff  mnoi  t  on  band,  after  p^ynent  <  f  flzed  cb'trq^  to  *>e  %•  8Ut*Hl aho^e.fl  6I7,9S3  00 
It  w  II  be  si-en  ttuit  afte-  piymtsnt  uf  10  per  cent  on  tbe  inereaaed  cipital,  wbit  h 

wonidh^ $MSV00 

Tax  »  p«*r  ret*t 60,754 

T«.U1  divide  d $\m8U00 

Balance  remaining  on  bADd....^    »^ ^ 3;ia,i81  00 

We  ill ^  (.(cthat  after  paying  10  per  cent,  dividend  on  the  present 
increased  c&pual  and  all  the  fixed  charges  agflinst  the  Company,  there  will 
still  be  a  he  a  surpla  f  of  $336,131  to  the  credit  of  income  account. 

It  should  also  be  stated  that  these  figures  are  based  upon  the  business 
of  the  present  line.  They  show  that  if  we  take  the  road  as  it  now  stands^ 
it  can  pay  more  than  10  per  cent  dividends  upon  tbe  increased  stock' 
Of  course  there  will  be  a  contribution  to  the  earnings  of  the  roadf 
from  the  business  of  the  new  line  of  112  miles,  which  id  to  be  built  with 
the  money  paid  in  for  the  new  issue  ^o(  stock.  Tiie  directors  claim 
that  the  new  line  will  earn  its  own  10  percent,  dividend  on  cost,  and 
iDcrease  the  tra£Sc  on  the  main  line.  Tbe  road  and  branches  will  be  54i 
miles  io  length. 


«^t^«^«««^Mta^W^#«««tf«^«««^h^^^i^ 


THE  DISCOUNT  HARIET. 

For  a  few  weeks  past  there  has  been  a  growing  pressure  in  the  discount 
market,  wliich  at  last  has  developed  into  an  unusual  stringency.  The 
city  br.nks  report  a  greater  urgency  from  their  mercantile  customers  for 
accommodation  than  has  been  experienced  for  many  years  past ;  and  that 
the  applications  have  exceeded  the  means  of  the  banks  has  been  unfor- 
tunately obvious,  from  the  fact  that  several  failures  have  occurred  within 
the  week.  When  the  best  double  name  paper  is  negotiated  with  difflcuUy 
at  12@1^  P^r  ^^^\^  ^^^  choice  single  names  at  12@24  per  cent,  the  mar- 
ket is  obviously  far  from  being  in  a  healthy  condition  ;  and  this  state  of 
affiiirs  appears  the  more  anomalous,  i  n  view  of  the  fact  that  money  is 
comparatively  abundant  on  c-«ll,  Wall  street  borrowers  being  readily  sup- 
pHe<]  upon  ciillaterals  at  6@7  per  cent. 

It  has  been  common  with  the  press  to  attribute  this  condition  of  the 
market  to  a  radical  distrust  in  mercantile  credits.  It  is  of  course  to  be 
expected  that,  when  rates  rise  to  such  extraordinary  figures,  there  should 
be  more  than  ordinary  caution   among  discounters;  but  we  find  no 


488  TBI  DiBCOvm  mibkkt.  [Dteember^ 

reason  for  supposiDg  that  the  process  which  has  culminsted  in  the  m- 
vailing  pressure  was  influenced  by  any  special  lack  of  coofideDce.  Tbs 
banks  generally  state  that  Ihey  now  hold  more  paper  than  for  msny  years 
past,  and  it  is  hardly  presumable  that  they  would  have  diMwooted  lo 
heavily  under  a  feeling  of  distrust  It  has  been  again  said  that  dt^tmt 
has  been  especially  directed  against  the  dry  goods  interest;  this  idea,  bov- 
ever,  b  irreconcilable  with  the  fact  that^ere  has  been  no  more  diffi- 
culty in  negotiating  that  class  of  credits  than  any  other,  nor  have  rates 
upon  such  paper  been  relatively  higher.  Of  course,  wiih  a  deranged  mone- 
tary system,  with  a  steady  decline  in  prices  and  consequently  in  the  rjiloe 
of  stocks  of  good?,  and  with  extravagant  private  and  business  eipeudi- 
tures,  there  is  naturally  a  chronic  feeling  of  cautiun  re^^pecting  credits 
generally ;  but  there  has  been  of  late  nothing  to  stimulate  or  intensify 
this  feeling,  or  to  augment  the  risks  arising  from  th«  se  causes.  On  the 
contrary,  within  late  months  there  have  been  indications  of  an  improviDg 
condition  of  the  material  interests  of  ,tlie  country  at  large.  Tiit^re  has 
been  a  check  upon  our  late  excessive  importation^^,  and' our  exports  have 
very  materially  increased — the  best  possible  indication  that  stocks  of  com- 
modities are  recovering  their  normal  comlition,  and  that  the  product  of 
the  pountry  is  gaining  upon  its  consumption,  the  symptom  for  which 
intelligent  observers  have  eagerly  watched  as  the  truest  e>idvuc<*ofa 
natural  return  to  a  healthier  condition  of  affair?.  So  far,  the  signs  of 
the  times  have  been  encouraging  to  a  growth  of  confidence  in  commeicial 
credits ;  and  the  banks  have  not  been  slow  to  appreciate  these  indica- 
tions. 

This  unusual  condition  of  the  discount  market  appears  to  be  verj  closely 
connected  with  recent  irregularities  in  currency  movements.  A  few 
months  since  the  Treasury  began  to  cancel  the  lower  dHnoniiiuiiioits  of 
United  States  notes,  and  the  process  was  continued  until  several  mi  1! ions 
of  the  more  active  form  of  legal  tender  circulation  «ere  temporarily  retired 
from  use,  the  Treasury  having  but  this  month  oommt*nced  to  ri*{  lace 
the  retired  notes.  From  this  cause,  the  New  Ycrk  banks  could  ot>l%  very 
partially  supply  the  demand  for  currency  from  the  West  for  movini/  the 
grain  crops.  The  West  had  consequently  to  curtain  the  pre^suie  of  as 
important  currency  contraction  at  a  season  when  currency  is  r«*quired 
for  the  transfer  of  oomroodities  from  the  producer  to  the  meic^ant.  Is 
the  absence  of  the  usual  medium  of  exchange,  the  cro))s  had  of  neces- 
sity to  be  moved  to  a  large  extent  upon  credit.  The  farmer,  having  failed 
to  receive  money  for  his  products,  wa«  unable  to  make  purchases  or 
settlements  with  the  storekeepers,  who,  in  turn,  were  unable  to  settis 
with  their  creditors;  and  thus  the  Westem  merchants  were,  on  the  one 
hand,  compelled  to  buy  in  this  city  more  largely  on  credit  U:an  usuaL 


1869]  THB  DISCOUNT   MARSET.  489 

and,  on  the  other,  to  ask  a  temporary  extension  of  inaturing  obligatione. 
Tite  direct  result  of  this  process  has  been  to  cause  a  sudden  and  large 
increask?  in  ths  credits  granted  by  New  York  merchants ;  and  hence  the 
ur. usual  magnitude  of  their  present  applications  for  discounts.  So  far  as 
this  cause  may  have  contributed  to  the  prevailing  stringency,  the  pres- 
sure is  to  be  viewed  as  the  result  of  a  temporary  postponement  of  settle- 
ments, from  reaisons  of  an  extraneous  and  exceptional  cliaracter. 

At  the  same  time  other  minor  influences  may  have  helped  to  impede 
credit  operations.  Kumors  have  prevailed  foreshadowing  a  decision  of 
the  Supreme  Court  adverse  to  the  constitutionality  of  the  Legal  Tender 
Act;  and  its  importance  having  been  magnified  for  sensational  effect,  it  is 
pot'sible  that  some  may  have  felt  timid  about  tikinglong  date  paper.  The 
growing  conviction  that  the  increasing  crops  and  the  decline  in  gold  will 
inaugurate  a  permanently  lower  range  of  values,  may  also  have  produced 
in  some  quarters  a  feeling  of  caution.  But  our  observation  does  not  lead 
us  to  8U)>pose  that  tliese  influences  have  had  any  very  material  effect^upon 
the  negoitation  of  credits.  Something,  however,  is  undoubtedly  due  to 
the  fact  that  the  means  of  the  Western  population  has  been  diminished  by 
the  recent  fall  in  the  value  of  grain  and  other  produce.  The  aggregate 
value  of  the  grain  crop  of  1869  is  very  materially  below  that  of  late  years  » 
aD<l  hs  the  reduction  of  expenditures  does  not  immediately  accompany  the 
it  loss  of  iucome,  b  quite  conceivable  that  the  West  is  temporarily  short 
of  funds  for  paying  its  debts  to  the  Ease.  Then,  again,  the  effect  of  the 
irregularity  in  currency  regulations,  above  alluded  to,  has  been  aggravated 
by  the  lack  of  elasticity  in  our  monetary  system.  In  the  absence  of  any 
arrani^ernents  providing  for  the  redemption  of  bank  circulation  during 
periods  of  eane  in  money,  the  surplus  funds  of  the  banks  are  at  the  quiet 
seasons  of  the  year  drawn  into  speculative  movements  and  there  held,  at 
periods  when  the  crop  movements  call  for  a  freer  circulation,  and  when 
the  nierchants  require  enlarged  discounts.  This,  however,  cannot  perhaps 
be  regarded  as  having  contributed  more  than  usual  to  the  prevailing 
pressure. 

Upon  the  whole,  then,  we  incline  to  the  conclusion  that  the  present  state 
of  thir  inaiket  is  mainly  the  result  of  an  over  supply  of  mercautile  paper, 
induced  by  temporary  and  exceptional  causes,  extraneous  to  purely  com- 
mercial movements  or  to  considerations  fundamentally  affecting  the 
soundness  of  commercial  credits. 


440  Biunr  noM  fiboal  BURonra.  [Hawtify 

BELIEF  FBOI  FISCAL  BUUESIL 

The  December  statement  of  the  debt  shows  ns  that  we  have  in  the 
Treasury  almost  77  million  dollars  of  bonds,  of  which  20  millions  belong 
to  the  sinking  fund,  while  the  remainder  are  held  to  await  the  action  d 
Congress.  The  fact  that  so  large  a  surplus  has  been  raised  by  taxation 
during  the  past  ten  months  is  very  gratifying  and  suggestive.  It 
shows  that  this  country  is  In  earnest  in  the  work  of  pajing  offits 
public  debt,  and  it  indicates  the  extent  of  the  fiscal  resources  and 
industrial  strength  which  can  bear  so  heavy  a  drain  upon  its  means,  and 
can  still  carry  fjrward  with  more  energy  and  activity  than  ever,  innnmer- 
able  railway  and  oiher  projects,  which  are  absorbing  capital  to  a  degree 
jseldom  equalled  in  this  country  heretofore.  Now,  however,  a  genenl 
desire  appears  to  bo  springing  up  on  almost  every  hand  for  a  diminii- 
(ion  of  the  pressure  of  taxation.  Great  as  has  been  the  amount  of  the 
taxes  repealed  during  the  last  two  years,  it  is  notorious  that  mneh 
remains  to  be  done  before  our  internal  revenue  system  can  be  pro- 
nounced adapted  to  (he  fiscal  wants  of  the  country,  or  free  from  mi»> 
chievous  imperfections.  It  has  been  truly  said  that  a  bad  tax  is  mors 
mischievous,  and  inflicts  greater  evils  on  a  peopl<>,  in  time  of  peace, 
than  a  disastrous  campaign  in  time  of  war.  Spain,  by  a  foolish  and 
monstrous  tax  system,  confiscated  the  property  of  its  industrial  popular 
tion,  devastated  and  laid  waste  its  fairest  industries,  and  put  back  the 
progress  of  the  country  for  a  whole  century.  Now,  although  there  is 
little  danger  that  under  our  popular  government,  such  stupendous 
disasters  should  ba  let  loose  upon  the  country  by  bad  fiscal  l«>gislatios, 
still  minor  evils,  to  a  considerable  extent,  have  been  produced  by  some 
of  our  taxes.  And  where  these  fiscal  evils  remain  on  the  statute  book, 
public  opinion  demands  that  the  pruning  knife  of  fiscal  reform  must, 
with  a  firm  hand,  be  applied. 

But  there  are  other  reasons  why  a  dimunition  of  the  pressure  on 
internal  revenue  is  demanded.  The  aggregate  amount  yielded  by  these 
taxes  is  regarded  as  more  than  the  country  can  really  afford.  The  cus- 
tom duties  yielded  last  year  nearly  lb2  millions,  and  the  internal 
revenue  159  millions.  There  is  a  large  class  of  persons  who  are  in 
favor  of  reducing  the  internal  revenue  to  about  120  millions,  or  even 
lower,  keeping  up  by  a  revenue  tariff  the  aggregate  of  the  customs 
duties,  so  as  to  secure  the  prompt  payment  of  the  interest  on  the  public 
debt,  and  the  redeeming  a  considerable  sum  of  the  prirdpil  of  the  debt 
every  year.  By  rigid  economy  in  every  department  of  the  administra- 
tion, by  turning  a  deaf  ear  to  ail  projects  for  making  grants  to  new 
railroads,  or  subsidizing  steamship  companies,  or  buying  up  useless  leal 


;:860]  BBLIXV  VROM  FI80AL  BURDBKfl.  441 

estate  from  foreign  govemmeDts,  we  shfJl  be  able,  it  is  supposed,  to  get 
along  very  well  with  180  millions  from  customs  and  120  millions  from 
internal  revenue. 

But  there  is  a  third  reason  ni*ged  by  those  who  are  in  favor  of  a 
repeal  or  remission  of  some  of  the  internal  revenue  taxes.  It  consist  in 
the  fact  that  to  lower  taxes  does  not  always  lesnen  their  productive- 
ness. This  was  seen  last  year  in  the  working  of  the  spirit  tax,  which 
yielded  30  millions  at  the  reduced  rate  of  50  cents  a  gallon,  against  13 
millions  the  previous  year,  when  the  tax  was  $2  a  gallon.  The  full 
report  of  the  internal  revenue  collections  for  last  year  is  well  worthy 
of  examination  in  this  point  of  view.  It  is  semi-oflSclally  published  as 
follows : 

Art^clee.  IWP.  1W». 

On  B  !r!f« ^ •^ $48.C««,40t  74  t14.«9ll,7«  W 

Onto*tacc) 2S4»»,70'r  67  14,'«47J07  68 

I^rmenw  I  Hqao  ■ H.O  9.s7ft  61  6.«s\  «1  7© 

BankB  an  t  banbcra .  M'*^>.B'*»  M  l,Srt  ,^4.">  65 

QTOB»rece!pi« e,'^0».H«8  8i  6.-2«'.0»>0  84 

Salec a4i»i.srM«  4/87,W)0  38 

Other  special  taxes »  8,ft01,4'ii  67  1«  h«.<.B47  88 

Inccme 84,71»U63  84  4»,45%B'8  86 

Lejr-res...      .  1244   8    01  l.'il8.«>7  84 

ArUclet^  In  B€heda.e S^a.'^tO  78  1,1JJ4.*»  08 

PaMDorte S».j6'^  00  «*,«fO  00 

Oas J,VH,'05  8J  l»iv,o-l6S 

Penalt^ci 8770NJ79  l,a6«8St69 

NototherwiM  meniiuned i,«-4.«7h  «J  ««»0«)  87 

Slaxnps K,.44>71001  11.8Bi,aja  01 

Total  co'lecti'iia 1«u,0«»,84i  «9 

ToUl  trtx  r»  fnndeJ - 8fl0,v8^  I'i 

2¥flteoUaiona U0,«79,.09  17 

This  report  fully  bears  out  what  has  been  said  about  the  increased 
productiveness  which  sometimes  follows  reduced    rates  of    taxation. 
It  is  needless  to  cite  the  details.    Fiscal  history  is  full  of  illustrations 
of  the  same  truth.     What  is  more  useful  is  to  point  out  a  fourth  reason 
for  reversing  our  internal  tax  system.     We  refer  to  the  necessity  for 
repealing  petty,  inquisitorial,  unproductive  taxes,  which  make  a  govern- 
ment unpopular  and  cause  needless  annoyance  to  private  citizens.    One 
of  the  taxes  most  resented  and  objected  to,  because  of  its  inquisitorial 
character,  is  the  income-tax.    The  Maoazinb  has  not  ventured  to  go  so 
far  as  to  recommend  that  it  should  be  given  up  when  it  ex  pi  res  next 
year.    It  produced  thirty-four  millions  last  year  against  forty-one  mil- 
lions the  year  before.    It  this  Isrge  sum  could  be  di^^pensed  with,  we 
should  be  glad.     But  other  inquisitorial  and  offer  si ve  taxes  there  are 
which  have  no  indispensable  character  of  produi'tiveness  about  them 
The  articles  in  schedule  A,  and  several  of  the  spe<-ial   taxes,  ini^ht  be 
dispensed  with,  and  we  should  scarcely  lose  any  appreciable  amount  of 
revenue ;  for  they  cost  ofteniimes  to  the  people  far   mere  than  they 
bring  in  to  the  Treasury.    The  abuses  of  the  tax  on  gas  and  on  the  fares 


442  THX  BtJPRElfX   COURT  AND  THK  LXGAL  TXVDKii   ACT*  [December 

Upon  tbe  street  railroads  have  been  frequently  pointed  outy  and  the  time 
certainly  has  oome  for  a  reform. 

We  have  space  to  notice  but  one  more  of  the  numerous  reasons  fiar 
revising  our  Internal  Revenue  system.  Some  of  its  arrangementi 
demoralize  the  tax- payer.  We  put  too  much  temptation  to  false  oaths 
before  the  minds  ot  our  citizens.  Except,  we  belie ve,  in  Ilolbind,  a 
generation  or  two  ag^,  no  modern  government  has  ever  taken  so  bold 
a  step  as  to  put  almost  every  man  of  its  more  intelligent  adult  |H>palar 
tion  under  an  oath  in  order  that  it  may  ruise  from  them  a  fragnieo* 
tary  part  of  its  taxation  and  prevent  them  from  defrauding  it  of  its 
legal  revenue.  By  all  means  let  us  do  away  with  the  multiplicity  of 
oaths.  No  supposed  advantages  of  any  revenue  arrangement  wiU 
compensate  tor  the  fearful  perils  which  in  a  Republic  like  ours  must 
inevitably  spring  from  causes  which  demoralize  the  citizen,  degrade  the 
public  opinion  of  right  and  wr<ing,  and  outrage  the  reverence  of  the 
human  nr'nd  for  the  solemn  asseveratiDu  of  an  oath.  The  English 
Government  for  almost  a  quarter  of  a  century  has  derived  considembls 
revenue  from  an  income  tax,  but  it  has  never  resorted  to  tbe  expedient 
of  putting  the  taxpayers  under  oath,  much  le^s  has  it  resort«*d  to  tht 
clumsy  contrivance  of  attempting  to  prevent  false  swearing  by  pub- 
lishing, or  conniving  at  the  publibhing,  of  the  income  returns  in  the 
newspajiers.  Congress,  of  course,  will  take  no  rash  steps  in  regard  to 
our  fiscal  8}  stem,  but  we  have  said  enough  to  show  that  a  «  ell-considered 
judicious  rf  form  in  regard  to  our  internal  revenue  is  not  only  expedient 
but  desirulile,  and  imperatively  demanded  by  public  opinion  and  by 
an  enlightened  regard  to  the  best  interests  of  the  nation. 


^i#^»rfM^Jfc<>i*^>MN^»'»^rf^M»<^IM^^^*»^**»^ 


THE  SDPRBHE  COURT  AND  THE  LEGAL  TENDER  ACT. 

ProphetR  of  evil  are  always  abundant.  In  fact  It  requires  so  little  tk\l\ 
or  acumen  to  follow  tlieir  profession  tiiat  it  is  no  wonder  many  fpt-od 
their  tine  in  (iressing  up  their  mHginary  dangers  to  fiii>hten  the  tiioid 
with.  At  pre>ent  the  country  is  full  of  these  self•sati^fi^d  indi%iOoali 
who  H re  tilling  the  air  nith  their  dismal  forebodings.  Bit  they  lived 
durini^  the  euiire  jeriod  of  the  iiar,  and  in  spite  of  them  the  oountiy 
prospered. 

The  rock  upon  which  every  man's  fortune  is  now  to  be  wrecked  iS| 
accor^ii  i<^  ti>  tl:e^e  wise  head^,  the  expected  decision  of  the  Sui'teme 
Court  w  it!i  regard  to  the  Legal  Tender  Act    That  decision  will  at  once, 


1860]  TBK   BDPBSIIK  COURT  AVD  TBM  LSOAL  TBITOBR   ACT.  443 

we  are  told,  take  off  thirty  per  cent  from  all  values  leave  t^ie  country 
without  a  curreDcj,  and  all  commercial  matters  in  inextricable  confuBion. 
This  certainly  ia  a  dark  picture,  and  if  there  were  any  real  resem- 
blAnce  letween  it  and  the  probable  events  of  the  immediate  future,  capi- 
tal would  be  very  timid  and  business  paralysed. 

But  in  the  first  place  may  we  not  challenge  the  assertion,  that  the 
Su(>reme  Court  is  to  render  any  decision  upon  these  questions  I  If  the 
results  are  to  be  as  disastrous  to  the  country  as  these  forebodings  indicate 
oeriainly  that  Court  can  see  it,  and  constituted  as  it  at  present  is,  would 
delay  action  until  a  quieter  and  easier  mode  could  be  found  for  lifting 
us  out  of  our  present  condition  and  putting  us  upon  a  more  stable 
currency  basis*  Our  entire  revenue  system  depends  for  its  produc- 
tiveness upon  freedom  from  any  such  convulsion;  in  fact  the  whole 
machinery  of  the  government,  its  ability  to  maintain  itself  undtr  the  heavy 
pa3*ments  it  must  make,  are  so  intimately  connected  with  t'le  c  »tnmercial 
prosperity  of  the  country  that  we  may  rest  with  perfect  confi  lence  in  the 
knowledge  that  nothing  will  be  done  by  that  Court  which  can  result 
in  any  sudden  tumble  in  values. 

We  should  therefore  be  entirely  sure,  if  the  results  of  this  decision 
were  to  be  thus  disastrous,  that  the  country's  needs  would  influence  and 
guide  the  Court  in  its  deliberations.  Yet  a  delay  ot  justice  is  to  the  liti- 
gants a  denial  of  justice,  and  nothing  but  national  disaster,  as  the  result 
of  their  action,  would  be  an  excuse  for  delay.  Such,  we  think,  is  the 
opinion  of  the  Court,  and  that  they  do  not  anticipate  any  injury  to  tlie 
country  from  this  decision,  and  do  not  intend  to  hold  the  question  open 
much  longer,  would  be  inferred  from  the  deci.sions  already  made  affect- 
ing this  subject  In  two  cases,  they  have  held  contracts  valid  and  have 
enforced  them,  which  by  their  terms  were  to  be  discharged  alone  by  the 
payment  of  gold.  Anothe*  contract  under  the  Confederate  Government 
the  Court  decided  must  be  paid  in  confederate  notes  or  their  equivalent 
at  the  maturity  of  the  obIi;;ation.  In  a  word,  the  idea  appears  to  be  that 
the  contract  must  be  executed  according  to  the  intent  of  the  parties 
niaking  it,  and  that  these  vexed  questions  shall  be  so  settled  and  the 
statute  so  interpreted  as  to  work  the  least  possible  injury  to  individuals. 

With  these  ideas  in  view,  then,  what  is  likely  to  be  the  decision  of 
the  Court  on  this  legal  tender  question,  and  what  when  made,  will  be  its 
results?  The  Court  can  come  to  either  one  of  the  two  conclusions. 
First,  that  the  provision  in  the  act  making  the  greenback  a  legal  tender 
for  all  debts  was  void  ab  initio.  Such  a  decision  would  not,  however 
affect  obligations  payable  in  dollars  made  since  greenbacks  came  into 
use  as  currency ;  for  the  Court  has  already  held  as  noticed  above,  that 
the  intent  of  the  parties  would  in  all  cases  govern,  and  that  they  would 


444  THE  8UPREM8  OOITRT  A9D  THE  LSOAL  TSlfDZR  ACT.  \Deeemh$r 

therefore  be  payable  in  currency.  Any  other  congtruetion  woulJ  impm 
the  contract,  and  is  therefore  wholly  unauthorized.  Hence,  after  ibe  deci- 
sion, contracts  rould  be  made  and  budness  could  be  transacted  in  either 
gold  or  currency,  precisely  as  it  can  be  now.  In  this  particubir  then, 
such  a  determination  of  the  question  would  work  no  change  in  the  con- 
dition of  tie  country  or  in  the  modes  of  doing  business.  The  words 
legal  tender  would  be  erased  from  the  United  States  currency,  but  they 
would  none  the  less  be  legal  tender  for  the  payment  of  all  outstaodii^ 
contracts  made  since  their  isfue,  and  for  every  contract  subsequently  made, 
in  which  such  was  tbe  intent  of  the  parties  to  it.  How,  then,  could  aay 
disaster  or  check  to  business  transaction*  rmiult  f 

But  it  may  be  said  that  the  inferior  currency  (the  greenback)  would 
be  quickly  forced  out  of  use  by  the  better  (gold)  currency,  and  that  henee 
we  would  have  the  severest  kind  of  contraction.  This  very  argument  was 
used  when  it  ^  was  proposed  to  pass  the  Qol4  Contract  Bill,  and  yet 
how  Utile  influence  the  decisions  establishing  the  principle  contJuiied 
in  that  bill  have  had  ;  in  fact  not  the  least,  in  the  direction  snggested. 
And  in  the  nature  of  things  why  should  United  States  notes  be  any  the 
less  in  use  than  at  present!  They  would,  according  to  the  abore  men- 
tioned decisions,  discharge  contracts  precisely  the  same  as  now  ;  the  bosi- 
ness  of  the  country  would  continue  as  now  to  be  done  with  them  ;  aad 
only  by  very  slow  degrees  would  that  law  assert  itself,  and  then,  in  a 
natural,  quiet  way,  as  the  country  became  prepared  for  the  change,  bring 
us  back  to  a  currency  redeemable  in  specie. 

Nor  need  we  fear  that  the  Banks  would  suffer  by  the  action  of  the  Coart, 
and  through  the  Banks  the  people.  Ordinary  banking  business  woaU 
be  conducted  as  now,  money  being  loaned  and  notes  pwd,  deposits 
received  and  checks  cashed  all  in  kind.  The  gold  decisions  and  the  con- 
federate decision  above  ieferred  to  would  protect  the  parties  to  aay 
contract.  With  regard  to  Bank  currency  it  might  be  necessary  for  Con. 
gross  to  grant  some  relief,  so  that  no  one  conld  demand  specie  of  them 
for  their  bills  until  both  they  and  the  country  were  in  positicD  to 
resume  gold  payments.  We  do  not  indicate  what  precise  action  wodd 
be  necessary,  or  what  should  be  done.  But  the  Banks  are  the  eras- 
tures  of  Congress,  and  have  become  the  finandal  machinery  of  the 
country  ;  the  crippling  of  these  institutions  would  be  quickly  felt  through- 
out the  whole  commercial  body.  Hence  the  power  and  necessity  would 
exist  for  meeting  any  exigency  which  the  new  state  of  things  might 
make  apparent  in  their  business  relaUons  with  the  country. 

Again,  there  can  be  no  force  in  the  idea  that  m  a  result  of  such  a  ded- 
sion  gold  would  rise  in  value,  or  more  properly  speaking  greenbadci 
would  depreciate.    We  have  already  seen  Uiat  United  States  notes  weald 


1669]     THE  8UPRXMB  COUST  AVD  THB  LEGAL  TSNOSR  lOT.       445 

perform  all  the  funetions  of  currencj  tbey  now  perform,  so  lon^  as  the 
business  of  tbe  conntry  was  conducted  on  that  ba^is.  Besides  tbey 
would  now  continue  to  be  tbe  notes  of  tbe  government,  and  it  would  as 
now  be  liable  for  their  ultimate  payment.  Without  doubt  some  provision 
also  would  be  quickly  made  for  their  finsl  withdrawal;  not  violent  wilb« 
drawal  so  as  to  disturb  the  business  of  the  country;  but  gradually  and 
almost  impercej^tibly  lifting  them  up  to  the  value  of  gold.  This  might  be 
done  by  converting  them  in  fixed  amounts  at  fixed  times  into  com., 
pound  notes,  as  we  have  often  heretofore  suggested. 

In  what  has  been  said  we  have  taken  it  for  granted  that  the  decision 
of  the  court  would  declare  the  legal  tender  clause  void  Cr-  i .  >:  •  '.  his  is 
the  most  radical  form  which  the  decisiou  could  t(;L'3.  There  is  another 
conclusion  which  we  think  the  court  is  more  likely  to  reach,  and  which 
would  involve  no  possible  change  in  the  status  of  thing?*,  and  jet  effec- 
tually dispose  of  the  question.  The  Legal  Tender  act  was  passed  at  a 
time  when  the  nation  was  struggling  for  its  life,  and  it  was  declared  by 
the-  then  President,  by  a  large  majority  of  Congress  and  of  the  people, 
that  it  was  requisite  aa  a  war  measure,  as  a  means  of  national  preserv. 
ation.  Of  course  many  will  insist  that  it  was  not  necessary ;  that  the  war 
might  have  been  successfully  prosecuted  without  it.  We  shall  not  argue 
the  point  As  we  have  stated  above,  Congress  affirmed  that  it  wa9 
necessary,  and  a  large  majority  of  the  people  were  of  a  like  opinion.  The 
United  States  Court  can  now  very  reasonably  be  of  the  saiiie  mind,  and 
declare  that  though  the  letter  of  the  constitution  does  not  authorize  such 
an  act  under  any  ordinary  circumstances  or  condition  of  the  country,  yet 
there  is  a  war  power  necessarily  inherent  in  any  govermental  constitution 
authorizing  any  &nd  every  act  which  is  requisite  ibr  the  preservation  of 
the  nation's  life.  Should  the  Court  come  to  this  conclusion  the  result 
would  simply  be  that  the  present  issue  of  legal  tenders  wuuM  be  upheld 
but  any  new  issue  would  be  impossible.  Such  a  decision  could  not  in 
nuy  manner  interfere  with,  or  in  the  least  disturb  the  business  of  the  coun. 
try. 

We  thus  see  that  in  any  event  the  difficulties  and  dangers  suggested  by 
theae  prophets  of  evil  are  merely  imaginary,  and  that  the  changes  effected 
in  our  daily  transactions  by  this  decision  would  be  very  slight.  But  there 
is  one  important  particular  in  which  the  whole  business  interests  of  tbe 
country  would  be  benefited.  We  are  now  living  under  continual  uncer- 
tainty aa  to  whether  Congress  will  or  will  not  bsue  more  currency.  Every 
interest  is  held  in  suspense  by  this  doubt.  There  can  be  no  real  vitality 
given  to  legitimate  enterprise  so  long  as  this  state  of  afifairs  continues. 
But  let  this  decision  be  announced  in  either  way  suggested,  so  that  it  is 
known  that  no  new  issue  of  greenbacks  can  be  made,  and  at  onftee  a 


446  1IA68ACHUBETT8  IKSUKAXCS   OOMPAKIKB.  [DftfBlkr, 

degree  of  certainty  is  tbrdwn  around  the  fntare;  confidenoe  will  iii€re»«; 
capital  will  become  lees  timid ;  and  the  movement  towards  a  iD<n« 
active,  legitimate  business  be  fairly  inaugurated.  May  we  not,  tkere* 
fore,  conclude  in  view  of  what  has  been  said  th&t  a  decision  of  the  Suj^renis 
Court  such  as  we  have  indicated  above  would  be  a  socroe  not  of  evil  but 
of  the  highest  good  to  the  country. 


CONDITION  OF  TIIE  lASSlCflDSEm  INSUBANCB  COIPINIIS. 

The  following  interesting  statement,  showing  the  condition  of  the 
Insurance  Companies  of  Massachusetts,  was  prepared  by  the  Secretary  of 
the  Howard  Insurance  Company  of  Boston,  and  presented  to  the  stock- 
holders of  that  company  at  their  annual  meeting  on  the  15th  of  October: 


g        §        S        |§       S.         5^§     «=- 


Ktm«.  fi        *1         ^         a»        7  2    a      5 


3         S        §         §^       -SS 

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BaySwte 1 '4,K)0     1,«0    1«,.%7    tl^SSt  M          6  l-lt  ^40? 

Boffton Sun.niO  aiP,S-*5  14S.*«1    I'll  8M  4S  111-5  S,f<7 

Foylston.      son. (KiO  INI ,788  88!  004     $,884  llS  ISiaim  %Jti% 

Ciiy 80n,«0»    '4,^eB  1«».*»HI    tft«l.«  40  86-7T  l/3» 

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Franklin HO'^riOO   8  ,fi(l9   S7,!I14    Itt/TO  IS  0  SjSi 

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vS 


Aviofo  tafolli.  ttilKa 


1B69]  THB  HOa    CROP   AND   ITS  PRODUCT.  447 

THE  nOO  CROP  AND  ITS  PRODDCT. 

The  comraenceineDt  of  a  new  season  in  "pork  packing,"  and  the  curing 
of  other  products  of  the  hog,  brings  with  it  the  usual  anaoual  of  specula* 
tioD  respecting  the  probable  supply  and  demand.  These  matters  are  sus- 
ceptible of  being  estimated  with  tolerable  accuracy.  Packers,  through 
their  correspondents  at  the  different  points,  obtain  such  information  as 
enables  them  to  sbite  the  number  of  swine  whkh  are  to  come  to  market 
Vfhh  fully  as  much  accuracy  as  the  cotton  crop  may  be  estimated ;  indeed 
of  late  J  ears  the  estimates  of  the  packers  have  very  nearly  approximated 
actual  results,  they  seldom  making  such  a  mistake  as  was  made  last  year 
in  cotton. 

There  has  not  been,  either,  any  important  obstacle  to  an  accurate 
estimate  of  the  probable  demand.  It  is,  to  be  sure,  subject  to  some  con- 
tingencies. The  foreign  demand  depends  a  great  deal  upon  the  state  of 
trade  in  Great  Britain.  If  manufactures  are  active  in  that  kingdom,  and 
her  working  people  well  employed,  our  exports  of  bacon  will  he  larger 
than  usual ;  if  otherwise,  smaller.  The  activity  of  the  shipping  interest 
also  produces  an  increased  demand,  while  the  state  of  industry  in  the 
Southern  States  has  a  considerable  influence  in  the  same  direction.  This 
was  well  illustrated  in  the  early  part  of  1868.  An  extraordinary  advance 
then  occurred  in  the  price  of  cotton.  It  was  about  the  season  for  planting 
cotton,  and  the  advance  in  the  price  was  a  great  stimulant  to  the  work 
of  planting.  The  increased  work  of  planting  cotton  was  immediately  felt 
in  the  market  for  hog  products,  which  were  wanted  to  provide  food  for 
hands  engaged  in  that  work,  and  an  advance  in  prices  of  bacon  and  lard 
immediately  took  place,  amounting  to  about  thirty  per  cent  on  the  prices 
previously  ruling. 

There  is  a  disposition  to  estimate  the  number  of  swine  for  the  coming 
season  at  about  the  same  figure  as  last  season ;  while  at  the  moment 
nothing  is  apparent  indicating  that  the  demand  will  be  more  than  an  aver- 
as:e  from  any  direction.  The  dull  state  of  trade  in  England,  and  the  large 
number  of  hands  in  the  manufacturing  districts  unemployed,  do  not 
favor  a  large  export  demand.  The  decline  in  cotton  that  has  taken  place 
does  not  favor  special  activity  in  cotton  planting,  nor  any  increased 
demand  for  hog  products  from  the  South.  The  shipping  interest  is  so 
much  interfered  with  by  regular  lines  of  steamers,  whose  consumption  of 
cured  meats  is  relatively  much  smaller  than  that  of  sail  vessels,  that 
but  little  promise  is  evident  in  that  direction. 

But  a  comparatively  new  feature  in  the  trade,  and  one  affecting  the 
course  of  it  very  materially,  is  the  practical  abolition  of  what  was  formerly 
known  as  the  "  packing  season,"  which  commenced  about  the  first  of 
November  and  ended  about  the  first  of  March.    The  curing  of  hog  products 

i 


448  TX1IKK88SI  TiVAVCis.  '    [i)fenil<r, 

hM  for  a  year  or  two  past  been  kept  up  all  the  year  through  with  the  aid 
of  ice.  Ice-oared  meats  baye  nearly  sutyplied  oar  local  trade  for  two 
summers  past,  and  considerable  qnan titles  have  been  slipped  abroad.  Ths 
farmer  has  discovered  that  there  is  a  market  for  his  hogs  at  any  time.  He 
is  therefore  under  no  necessity  of  hurrying  them  to  market  at  a  partico- 
]ar  season,  or  in  default  losing  the  sale  of  them.  They  can  be  sold  io 
July  as  well  as  in  December  at  their  fnll  market  value.  Thia  ia  a  fitvor- 
able  circumstance  in  many  respects.  It  promotes  better  euring,  by  aroid- 
insr  the  haste  and  carelessness  incident  to  **  the  season."  It  facilitates 
economy  in  feeding,  and  preserves  the  health  of  the  swine.  Its  eommer- 
cial  effect  is  to  cause  the  swine  to  be  held  back  if  prices  are  low  and  com 
is  low.  If  corn  be  high,  as  now,  the  farmer  is  disposed  to  send  it  to 
market,  and  his  swine  with  it  half  fattened.  There  b  every  prospect  of 
corn  ruling  at  a  pretty  full  figure  for  the  coming  year,  even  in  the  absence 
of  an  export  demand,  the  cold  and  drought  east  of  the  Alleghaniea  having 
materially  reduced  the  yield  this  year.  This  favors  an  early  marketing 
of  the  swine  which  may  now  be  ready,  or  nearly  ready,  to  come  forward- 
And  yet  there  is  reason  to  believe  that  the  hogs  will  be  well  fattened. 
If  corn  is  scarce  and  dear,  other  grains  are  cheap,  which,  mixed  with  pota- 
toes (of  which  the  crop  is  excessive),  make  excellent  food  for  swine. 
There  is,  besides,  the  **  mast"  in  Tennessee  and  Kentucky,  said  to  be 
never  more  abundant,  and  which  finttens  hogs  well. 

From  this  review  of  the  subject,  there  is  little  eccovragement  to  expect 
the  high  prices  which  have  ruled  in  the  past  six  years,  and  it  ia  probsh^e 
that  for  this  important  crop,  as  in  breadstuffii  and  cotton,  it  will  be  fouaO 
difficult  to  infuse  a  speculative  spirit  into  the  market,  in  the  absence  of 
which  prices  are  quite  likely  to  rule  lower  than  many  anticipate. 


TENHESSEB  FIIA1ICE8. 

The  following  from  tbe  OomptroUer'fl  report  is  of  ma;h  ioteratt : 

BTATB  maV  JkHD  FDCAVGBi  OP  TSZniSSnB. 

Bonds  loaned  to  rt11ro«f1t,tnte«war..^ $IS;ilS,ff)9 

Bends  to  fond  Interest  thereon— 186S S.SIILM> 

New  bonds  to  ntlroAds,  since  war,  186S-69 11.191,000 

Bailro:td  bonds  indorsed  bjStste... SiiMjOOt 

Total  nilrosd  debt ^ fSl,fSl,OOS 

Bank,  capital  and  other  old  debt t,4r*,Xfm 

Total  debt,  October  1, 1869 fSS^Sties 

Add  Jnly,  1859,  interest  nopaid l,!SiiLO0O 

Togetber $8a,SS«.€0S 

Represented  as  follows : 

Ballroads  for  bonds  and  indorsements,  as  abore |Sl,sn,CeO 

Dne  from  railroads  lor  arrearages  of  interest  dna  State S,S08»(jOO— iSI,19T,O0S 

State  Capitol,  Bank  of  Tennettee,  Ac $a,ier^ 

lazableeoftheSUte Saj8SM<> 

ReTennesoflsee-'n) $l,818,9«a  ^         _^ 

Less  for  BCkools dBO^OOO -iVJn,9l9 


X869]  TBKnSSBB  FIVAN'OU.  449 

The  Comptroller  remarke : 

From  October  1, 1860,'to  October  1, 1870,  this  amooDt  of  mooey  will  be  pvd  into 
tXie  Treasory  as  State  tax  if  the  revenae  laws  are  not  so  changed  as  to  letsen  it.  To 
Ibis  is  to  be  added  the  revenue  derived  from  t  e  pnvile/e  tax  on  iusarance  companies 
boons  from  banks,  turnpike  dividends,  telegraph  and  express  rompanie%  the  redemp- 
tion of  lands  and  town  lots  that  hive  been  sold  for  taxes  sud  bid  in  for  the  use  of  com- 
mon schools,  and  whatevei  may  b^  received  from  the  railroads. 

As  to  the  amount  likely  to  be  paid  into  the  Treasury  from  these  diifsrent  soarees, 
the  Legielatore  wil!  judge  from  the  amount  received  dnrinsr  the  present  fiscil  year. 
The  amount  paid  into  the  Treasury  during  the  fiscal  year  ending  September  30,  1868, 
by  the  railroad?,  was  1098,261  14.  During  the  year  ending  S^'ptember  SO,  1869, 
it  was  only  |7S0,264  5\  This  shows  a  falling  off  of  $267,985  t7.  The  cause 
of  this  deficit  on  the  part  of  the  railroads,  was  the  inability  of  some  of  the  roads 
(that  are  unfioi  bed),  longer  to  pay,  and  the  refusal  of  others  to  pay  (able  to  do  so), 
unless  the  State  would  receive  from  them  in  payment  of  their  indettedoess,  past 
due  coupons  which  they  had  purchased  at  a  reduced  ptice  for  that  special  purpose 
— *s  I  have  been  credibly  informed,  and  verily  believe.  The  Memphis  and  Charleston 
Railroad  Company  (doe  the  State  on  interest  account),  95S931  62,  prop'^sed  to  pay 
ita  dues  to  the  State — as  above— to  the  fiscal  ageoe7  of  the  State  in  l^ew  Yt)rk,  on 
the  80th  of  June  last»  provided  a  portion  of  it,  nearly  half  the  som,  would  be  received 
in  coupons.  ^^r 

Learning  in  June  last  that  certain  railroad  copipanies  had  agreed  among  them- 
weheK  not  to  pay  their  Jnly  interest,  thus  makiqg^  impossible  for  the  State  to  meet 
ita  liabilities,  and  afterward,  when  our  securities  had  depreciated,  to  bny  up  t^e 
oonpoGs,  and  present  them  In  payment  p{,0^  July  intereat.  I  inatructed  our  asrerry 
in  New  York  net  to  receive  coupons  ffon^^y  road.  The  propotitioo  of  the  Memp'^ia 
and  Charleston  Railroad  Company  therefore  waa  rejected,  and  the  $66,9^1  62  remnius 
unpaid.  s  «^ 

The  Mifsissippi  Central  and  Tennessee  Railroad  Company  haa  alsofaiUd  topi^,. 
notwithstanding  the  ,fact  tbatutst^President  was  fully  advised  of  the  necessities  nf 
the  State  Treasury,  aqid  notwi^tandiog  the  ability  of  the  Company  to  pay. 

The  esse  of  these  two  roads  Is  specially  apoken  of  here  in  my  report,  for  the  porpnm>  - 
of  callinflf  the  attention  of  the  Legislature  to  the  necessity  of  instituting  measures'- 1  > 
effectuilly  checkmate  Iherdesigna  of  railroad  companies,  which— dead  to  everv 
principle  of  gratitucie  to  the- State  that  has  warmed  them  into  life— use  every  meA"s- 
within  their  resch'  to''«%ink  hsr  into  temporary  bankruptcy  for  purposes  of  selfi  'i 
speculation.     The'8e<^roads  certainly  ought  at  once  to  be  put  into  the  hands  of  receive: », . 
and  run  in  the  inteVesta  of  the  State  uTl  the  last  farthing  is  paid. 

M}  re^.8ons:for*not  accepting  coupons  from  the  roads  in  payment  of  their  Juty 
interest  last,  may'lM  stated  as  follows:  The  State  len^^s  its  l>ood8  to  the  raiiro  ii 
c  >mpanies.  « Ttie  companies  sell  the  bondp,  and  use  the  proceeds  in  building  their 
road-t.  Thf) ^holders  of  the  bonds  oo  not  look  to  the  railroad  eompaoies  for  the 
interest  maturing  on  the  bonds.  That  is  the  business  of  the  6tat€.  So  far  as  t<  e 
payment  tothe  otae  of  the  iutert-nt  due  by  the  companies  on  the  l>onds  loaneo  h 
concemed^tb^'law  provides  that  it  shall  be  paid  by  the  companies  to  the  Sih  e 
semi-annual )4^y  by  the  I5th  day  of  June  and  Decembler  of  each  and  every  year,  h  •  i 
not  only  theJamount  due,  in  many,  but  enough  besides  to  pay  for  exchange,  commit 

.  .  .This^being  the  law  on  the  suVject,  it  is  evident  that  no  railroad  company  has  even 
believed  niat  it  could  force  the  btate  to  take  coupors  in  payment  rf  the  interest  due 
by  said  •Oompany  to  the  State.  The  ol  ject  of  these  companies,  tbereftire,  must  have 
been  to'Mpress  tbe  price  of  the  bonds  of  the  State  f(»r  purpos«  s  of  speculation,  by 
taking  advantage  of  the  peculiarly  critical  condition  of  the  State  Tre^aury  at  that 
time,  which  was  well  understood  by  them. 

Tbe  rep'Tt  sbows  what  roads  have  fully  pai  1  their  interest.  I  sm  n(  t  of  opinion' 
that  any  of  the  roads  have  intentionally  failed  to  pay  exrept  tbe  two  already 
named,  and  the  Evanavi lie,  Henderson  and  Nashville.  It  owes  the  State  $18,OuO 
in  interest,  an  i  I  believe  its  purpose  h  to  swiudle  the  State.  The  Nashville  and 
Decatur  has  pai  I  $181,965  29  on  its  January  and  July  interest,  1869.  It  still  owe8> 
$16,955  26  ;  but  this  will  soon  be  paid.  I  have  assurances,  also,  that  the  KooxTiile 
and  Charleston  Railroad  will^oon  pay  the  amount  of  interest  due  by  it. 

It  seems  evident  that  the  State  baa  increaaed  her  liabtlitiea  (by  loaning  her 


450  icoYfiiCBKT  OF  COIF  AKO  BULLION  IF  Kiw  TOBX.  [December, 

bonr1«  to  rnilrond  companies  that  failed  to  pay  the  iotereat  on  them)  to  audi  an  ezteat* 
th»t  it  will  be  impowible  for  eome  years  to  come  to  meet  tbtem. 

Takirg  thie  view  of  the  Bubjeet.  I  would  renpectfully  eug^eat  to  yoorhoDortUe 
body  tlie  propriety  of  Belling  a  sufficieot  number  of  eor  roads,  for  the  hoods  of  tbe 
State,  to  leBBeo  ocr  liabilities  eo*ne  eight  or  ten  million  of  doilara.  With  thia  rcdoc- 
tioD  in  our  State  debt,  our  liabiliiies  could  be  regularly  and  uafailiDglj  met. 


NORTH  CAROLIBTA  B05D8. 

The  Committee  on  Sfcnritiee  of  the  Stock  Exchange,  has  made  the  foHowiog  repor 
in  regard  to  the  Notih  Carolina  State  Special  Tax  Bocds : 

First — That  tboBe  bonds  only  which  have  been  passed  by  the  Committee,  are  good 
delivery,  eiiher  as  New  Bonds  or  Special  Tax  Bonds. 

Second — That,  until  further  notice  from  the  Committee,  all  North  Carolina  State 
Bonds  mu«t  be  dealt  in,  according  to  the  rtandard  of  the  old  boodr,  and  carry  the 
coupon  of  January,  1869,  or  be  made  to  conform  thereta  The  Committee  ikeviH 
decide,  that  North  Carolina  State  Bonds,  irsued  to  the  AtUntic,  Teonesaee  and  Ohio 
Railroai  Company,  are  not  good  delivery,  eiiher  as  new  Ixmda  or  Special  Tax  Boodi. 
They  may,  however,  be  called  up  separately  on  the  Free  list. 

The  following  North  Carolina  State  New  Booda  have  k>eeD  pmased  by  the  Com- 
mitt«e : 

North  Carolina  State  Bonds,  issaed  to  the  Western  North  CaroliDS  Baiht)ad  Coo- 
pany,  date  J  Oclob«»r  1,  1868. 

North  Carolina  State  Btnds,  issaed  to  the  Western  North  Carolina  Baflroad  Com- 
pany, dated  April  1.  1869. 

Williamstoo  and  Yarbore  Railroad  Company,  jdated  October  1, 1869. 

Wilmington,  Charlotte  and  Rutherford  Railrosd,  dated  Aprfl  1,  1869. 

Western  Railroad  Company,  dated  April  1, 186^. 

All  the  above  bear  the  imprint  (in  medallion)  that  the  Special  Tax  required  by 
the  CcnstituticD,  has  been  ordeied  to  be  levied  by  the  act  of  the  Legtalatmre  antkoriz- 
iog  the  same. 

PSNSTLVAm  STATE  DEBT. 

Hr.   R.   W.  Mackey,  State  Treasurer  of  Pennsylvania,  has  iseoed  the  follrwinc 

notice  to  the  holders  of  the  Feoosylvania  five  per  cent  State  L-^a^,  isaoed  coder  the 

act  of  June  11, 1840: 

TBBfstnnr  Dxr^BTvzirT, ) 
Babbibbubg,  Pecn.,  Kov»  2,  l9o9L    f 

*"  The  Comnfss'on^rff  of  the  Binldiiir  Fund  Ytire  anthoilzed  me  to  give  notice  to  aM  ^oVc^9  of 
the  five  per  cent.  8t«te  Loan,  due  July  3.  1670,  that  all  9ach  boncb  will  be  redeemed  br  tfal* 
Department  la  lull,  with  accrued  inter  et  to  date  of  i  res«uiat1on. 

You  will,  therefore,  notify  me  (at  this  <  ffict)  of  the  amoaut  of  bonds  yon  hold  ecd  des  re 
reuecmed,  and  I  will  direct  the  Farme'e*  and  Mecbanics*  C?attonal  ^ank^of  ihiaf'elpris 
to  accept  jonr  trar  t<fer»  and  pay  the  amoant  of  Tonr  boudc,  with  ioterent  to  dale  ot  uaottir. 

Iheae  paymebti  will  be  made  on  the  first  and  third  dn.nidays  of  evi  ry  month. 

Yoars  reapectfuLy, 

R.  W.  MACKET,  SUteTraASBier. 
'  r.  B.— The  interest  on  theee  hoods  will  cease  Joly  1, 1870^ 


^N^^^« 


GENERAL  MOVEMENT  OF  COIN  AND  BULUON  AT  NEW  YORK  IN  OCTOBER,  1S69. 

Spec'ein  b >nk8  October 9 $15,Mt^9 

Treaaure  received  from  California  hy  steamer ^ . . .  •  $  17,7P7    , 

"           *•                     "          dverland.., 1,<«7,«» 

Imports  firom  foreign  ports ; 8«5C9,444 

Coin  Interetit  paid  out. : '2,7i6,08i) 

Tiea»ary ealea ot g;:ld. .....^  11,OOU»OUO— 

Total  reportol  snpply , f39,48S,8B5 

Withdrawn  for  ezp  <rt •^•....     ff,9tt«0TS  

»»                 ciisoms 1MM168—    18»7«,01 

Specie  In  banks,  October  80 tX^^Ajm 

Total  withdrawn  and  in  bank «5^f48.«J 

Excess  of  repor  ed  anpp>7  not  acconoted  for ltSi4*w 


1860] 


RAILROAD   ITRM8.  451 


RAILROAD  ITEMS. 

OoHsoLiDATioir  OP  TBB  Nbw  Tork  Csmtral  AND  Haosox  RivBB  Rrilboads. — 
The  sgreement'of  consolidation,  made  the  15th  day  of  September,  i  i  t^e  year  1869, 
between  **  The  New  Tork  Central  Railroad  Company/*  party  of  the  firat  part,  and 
**  I'he  Hudson  River  Railroad  Oompany,**  party  of  the  secoud  part,  provides  that 
**  The  said  companies  do  hereby  agree  to  merge  and  consnh'date,  ann  do  hereby  consti- 
tute and  form  one  corporation,  by  the  name  of  The  New  Tork  Central  and  Hudson 
River  Railroad  Oompany .    Said  corporation  shall  continue  f>>r  the  term  of  500  years. 

That  the  capital  stock  of  the  new  corporation  to  be  now  is§ned  shall  be  $45,000,- 
roc.  and  the  aothoriBed  Bomber  of  shares  of  said  capital  stock  shall  be  450  000. 
287,950  shares  shall  be  issued  to  the  holders  of  the  capital  stock  of  the  New  York 
C<H)tra4,  and  160,280  of  said  shares  shaU  be  also  issued  to  the  holders,  of  the  capital 
etock  of  the  Hadson  River  Railroad  Company.  The  said  capital  stoc^  ma^  at  any 
time,  at  the  optinn  of  the  Board  of  Directors  of  the  consolidated  Company,  b3 
increased  to  an  amount  suffici  nt  to  capita' ise  at  par  the  interest  certificates  hereto* 
fore  ii^sued  by  the  New  York  Central  Railroad  Company,  under  the  resolution  of  the 
Board  of  Directors  of  said  Company,  passed  Dece  >  ber  19.  1868  ;  and  aUo  the  consol- 
idation certiticates  authorized  to  be  issued  in  pursuance  of  this  aicreement. 

No  further  or  other  issue  of  shares  of  capital  stock,  beyond  the  amount  necessary 
for  the  capitalization  of  the  saii  interest  and  consolidation  certificite<(,  fhall  be  inadi, 
unless  such  increase  shall  be  fin*t  nuthoriied  and  approved  by  t«'o-thirds  in  aaouut 
of  all  the  stockholders  of  such  conaoliJated  company! 

All  the  bonded  or  other  indebtedness  of  either  of  said  corporations,  includiu:?  the 
debt  certificates  of  the  New  York  Central  Railroad  Company  are  hereby  declared  to 
be  valid  and  binding  on  the  new  corporation. 

ABTICLB  vir. 

For  the  purpose  of  equalizing  the  values  of  the  property  of  said  consolidating  com- 
pan*es,  and  makinic  comperisatioo  to  the  stockholders  of  said  companies,  re!>peciivelv, 
for  all  differences  in  such  values,  the  parties  thereto  do  further  agree  that  there  shall 
be  it'sued  to  the  stockholders  of  the  said  companins  certificates,  to  be  called  consoli- 
dation certidcatos,  and  which  shall  provide  that  the  same  shall  be  payable  ratably, 
at  the  pleasure  of  the  company,  out  of  its  future  earnings,  a  d  that  until  the  s^  ae  ba 
wholly  paid  off  and  redeemed,  dividends  upon  the  amount  thereof  t>hall  b<)  pai  1  at 
the  same  rates  and  times  as  dividends  shall  be  pai  1  upon  the  cipital  stock. 

Such  consolidation  certificAtes  sbali  be  issued  for  such  purpose  of  equalization 
as  follows,  viz-: 

First— To  the  stockholdersof  the  New  York  Central  Railroad  Company,  there  shall 
be  issued  consoli  Jation  certificates  for  27  per  cent., or  $27  on  each  |1U0  of  the  cipital 
stock  of  said  company. 

^Second — To  the  stockholders  of  the  Hudson  River  Railroad  Company,  t^ere  shall  be 
issued  consolidation  certificates  for  85  per  cent.,  or  $85  on  each  $h  0  of  the  capital 
stock  of  said  Company.' 

For  the  further  purpose  of  such  equalization,  there  shaU  be  retained  out  of  the 
assets  of  the  New  York  Central  Railroad  Compaby,  the  sum  of  $%18,Hi0,  which  sum 
shall  be  distributed  ratably  among  the  holder-^  of  the  stock  certiticates  and  the  hohl- 
ers  of  the  interest  certificates  of  the  New  York  Central  Raiiroa  i  Co  npanv,  at  the 
time  of  the  ezch'Dge  of  stock  certificates,  after  the  perftfction  of  the  cofisnijdrition, 
as  herein  provided.  Tlie  27  per  cent,  in  consolidation  certifit^ates  heroin  provi  le  I, 
being  the  compensation  to  the  stockholders  of  the  New  York  0««ntral  liailroad  C  >n> 
pany,  both  io  respect  to  their  stock  and  their  inteest  i-ertificates  for  80  per  ce>it.  of 
the  par  of  such  stock  heretofore  issued  to  the  stockholders  of  said  C'mpany,  in 
respe*  t  to  such  stock — it  is  underst  od  and  agreed  that  each  stockh'»!der  of  thi 
New  York  Central  Rai  road  Cimpanv,  shall,  at  the  li-ne  he  sha'l  receive  his  cons  li- 
datioD  certificate  of  '^7  per  cent ,  produce  the  interest  certificate  of  80  per  cent,  upon 
the  par  thereof  corresponding  thereto,  to  the  end  that  the  delivery  of  the  co  i9oli- 
da  i  n  certificate  may  be  noted  an  I  receipted  for,  both  on  Hmh  stocK  certificate  and 
the  interest  certificate  ;  and  in  the  event  that  any  interest  certificate  shall  hnve  been 
separated  from  the  corresponding  stock  certificate,  the  holder  of  the  stock  certificate 
shall  not  be  entitled  to  receive  the  corsolidation  cettificate  for  27  per  cent  nn^il  he 
shaU  produce  for  the  purpose  of  notation  and  receipt  hereinbefore  provided  inteieit 


452  RAXLROAi)  TTEMB^  [Iktmkt, 

eertificatea  to  th«  amonni  of  80  percent;,  opon  the  par  AmooQt  of  the  ilock,  bota  cm 
rucb  ttockholder  shall  be  una^ble  to  prodaoe  soch  correapondiog  iaterttt  eevtifiate 
be  ihall  only  be  entitled  to  receive  roctsolidation  certificatee  for  16  percent  on  thi 
par  of  the  stock  so  produced,  and  the  holder  of  the  oorrespooding  ioterert  eertifieiU 
shall,  when  producnsr  the  same  aod  receiptin^p  therefor  be  entitled  to  a  aesoUditias 
certificate  for  the  residue,  being  16  per  cent,  on  tbe  amount  of  anch  interest  certifiatai 

AaTlGLBTIU. 

It  is  further  acrreed  that  the  consolidated  Compaoy  maj  at  ita  optieo,  tt  soj  tise, 
convert  the  amqunt  of  the  rtmsolidation  certificatee  iasoed  in  parsuanoeof  tbs^- 
reding  artisle,  into  capital  s^ock,  at  par  ;  and  that  euch  oonaolidatioo  certificate!  out 
be  t'anfiferred  in  any  susis  on  the  books  of  the  Compaoj  bj  the  hohfers  thanof, 
either  in  person  or  by  attorney,  on  tbe  surrender  of  the  eertificate- 

And  it  is  nnher  serepd  that  the  consolidated  Company  m^y  from  timetotiDc 
invest  its  fuiplts  moneys  in  tbe  said  consolidation  certifioatea,  by  porcbase  Ikfiofia 
the  market. 

AancLX  IX. 

It  is  farther  aer<^od  that  the  ontstanding  interest  eertiBratea,  issued  by  tbe  Krv 
York  ('entral  RsilroaH  (^o^f^pany,  in  purrnance  of  the  reaotntion  of  said  OippiDT, 
passed  December  19,  1869,  mhj  at  the  option  of  the  holders  ther4>of,  be  converted  istti 
or  exchanged  for  cerii'^cates  rf  the  tame  tenor  and  effect  ai  tbe  con*o'idatica  ci- 
tifies teo,  the  issue  whereof  is  herein  provided  for— and  that  the  cooMltdation  eertifi* 
catts  ««hich  may  be  thus  issued  for'exchanve  In  said  interest  certificates,  may  at  toy 
time  at  the  option  of  s^id  consolidated  Gompsny,  bs  converted  into  capital  ittck  it 
par,  as  prcvidpd  f>-*  by  the  article  hereinbefore  contained,  fixing  the  amoget  of 
the  capital  stock  of  the  eoosolidated  Gk>mpany. 

Eaia  Railway. — The  ptrwnel  of  the  Boird  of  Di<-ector8  of  this  Coinpssy  ktf 
eome  to  be  a  matter  of  such  immense  importance  to  the  stockholders,  that  we  girt 
the  directota  and  ofiSoc  rs,  as  elected  on  Tueeday,  Oct  1 2th. 

The  new  board  electedi  Jay  Oould  President,  and  James  FisV,  Jr.,  TMC-FrtM* 
dent.  H.  N.  Otis  holds  over  as  Secretary,  and  the  appointment  of  Mortimer  Soiih 
aa  Assistant  becretary,  "vias  confirmed.  Jay  li^oold  continuea  to  act  as  TrsssoRr. 
Alexander  8.  Diven.  the  former  Vice-President,  declined  being  a  candidate  for  re- 
election, and  Mr.  Fisk  waa  pnt  in  his  place. 

The  new  board  aleo  prrceeded  to  classify  themselves  in  accordance  with  the  lav 
pasFed  last  winter.     The  following  classification  was  agreed  upon : 

Homer  Ramsc'ell,  Charles  O.  Sisson  and  J.  D.  White,  to  go  cut  of  office  Oetolicr, 
1870. 

John  Hilton,  M.  R.  Simons  and  Oeonre  C.  Hall,  to  go  oot  in  in  1871. 

iohii  Osufon,  O.  W.  Chspmao  and  Henry  Thompson,  to  go  oot  in  1872. 

Alexaodtr  S.  Diven,  H.  N.  Smith,  Abram  Gk>uld  aod  H.  N.  ^Ot a  to  go  oot  is 
1878. 

Jay  Oould,  James  Fisk,  Jr.,  William  M.  Tweed  and  Frederick  A.  Lioe,  to  p 
OQt  in  1874. 

At  the  meeting  of  the  new  board  the  following  resolotion  was  also  adopted : 

/?eso/ve(/.  That  the  Presidert  be  instrnrted  to  carry  ont  tie  policy  which  fkt 
Executive  have  inan£urat«!d  ;  that  he  be  directed  to  proceed  at  ooc -.  to  carry  isto 
effect  (he  contrnct  wiih  the  Lalie  Shore  and  Michigan  Southero  Railroid  ftira  ntff^ 
flmugff  thrnu^h  line  for  passengers  and  freight  to  Chicago  a  d  the  We$t ;  sod  tk>>t 
he  be  authorized  and  directi^,  for  the  completion,  finis^i^g  and  operating  th-'rw, 
to  ispue  an<l  th«*  Secretary  be  aulhorixe  >  to  attach  tbe  e*  rporate  seal  to  $i/(fOfi  0 
brnds,  to  he  ca'led  lie  ••  Narrow  gauge  sinking  fond  bonds,"  secured  by  tfce  pro- 
ceeds of  the  trsfiSc  of  sncb  narrow  gauge  as  is  provided  for  in  such  contract. 

MiBsouBX  PACirio  Railxoad. — A  report  from  8t.  Louis,  dated  15th  iDet,«ayt: 

**The  sensation  of  to-day  in  St.  Lonis  is  the  action  of  our  County  Gonrt  io  iellis^ 

8500,000  Pacific  Railroad  stock,  belonging  to  the  connty,  for  $250,0O<)  cash  Co  HiidMi 

£.  Brid|;e,  of  thi*  city,  who  has  been  two  years  trying  to  get  cwitro!  of  the  ?90k 

directory.     A  "^  ring*  of  capitalists  in  the  interest  of  tbe  present  directory  bsd  biss 


1669] 


RAILROAD  ITBM8«  453 


formed  to  get  all  the  city  and  ooanty  stocV,  amoanting  to  over  |1,000.000«  Sioee 
June  last  the  propoe  tioo  ha?  been  pending  to  transfer  this  stock  for  bonds  of  a  new 
track,  which  the  Pacific  Company  »  ant%  running  centrally  through  St.  Ijoms  county, 
ehortenin>;  the  route  a  number  of  miles.  The  whole  thing  has  been  regarded  as  a 
grand  speculation,  out  of  whioh  certain  parties  woul  i  Milisa  some  $2,0  0,000  profits 
one  way  or  another.  The  hid  of  Mr.  Briigo  has  brok«*n  up  the  present  directory's 
'^ring,*  but  great  indignation  Btill  ezisits  among  the  people  at  the  sale  of  the  county's 
•tock  for  60  ctnts  on  the  dollar  »h  n  60  has  been  offered.  The  City  CjU'cil.  last 
week,  with  only  one  disseDting  voice, Tot^l  to  transfer  the  city's  st'ick  to  the  January, 
Gibson  or  Pacific  party,  but  it  is  said  that  Mayor  Oole  has  written  a  veto  of  the  bill, 
which  will  be  sent  in  to-morrow." 

Thomas  Allen.  President  of  the  Iron  Mountain  Railroad,  offered  f<ir  the  fi,000 
•hare«  of  the  Missouri  Pacific  stock,  which  was  sold  to  Hudson  B.  Bridge,  $280,000 
in  7  per  cent,  bonda  of  the  St  Louis  A  Memphis  Railroad  Oompany.  D.  R. 
Oarrison,  the  leader  of  the  party  opposed  to  Mr.  BriJge,  says  that  he  offered  $3JU,000 
in  casb  for  it. 

CfxciNNATC,  Hamiltoit  AND  Dakton  Raileoad  .  — The  earnings  of  thia  road  for  tht 

J  ears  ending  March  81, 1868  and  1869,  were  as  follows: 

m\  18S9. 

vrom  pAPs^nffsrs »     $476,797  $437,616 

'*     tctUkt 7JW,*7K  6i«,69l 

'»     mails  and  express 68«410  8M49 

••     renr  of  irdck.  Ac 8«,803  ^D.Sl? 

"    rent  of  mackiaery,  Ac «),i()3  1,621 

$1,889,891  $1,909,104 

Bspenses ^ .$748,719     $704,074 

Jtar&iuys,  Ies4  exnenses {664,175     $d05,CJ80 

From  whlck  deduct: 

Interest  OD  bonds • «• $lM.0fl0 

iienaral  i"ie:est  acconnt SI  884 

Taxes,  State 41,988 

»»      ^allonal 94,091 

Insn^ance 7,067 

Profit  aLd  loBS^sondries »«•  407  _ 

988,199 

LeaTlna  a  bal«»nce  of $»60,*J0 

Addsurplnd  March  81, 1868 408.817 

To»al $j75,678 

App  ii  d  as  f J. Iowa : 

Sab  criptl on  to  complete  JnnctlonR.R $5,000 

llamageuuHCCOiiutof  c>liBionat  Loevland,  Nov.  91, 1-67 17,075 

iilVid  Df^s  No. '4(i  and  37.  scrip 3^.0,000 

Balaaco—sarplu^  account,  March  31, 1860 808,609 

Total,  as  above , $(175,678 

Cooapared  with  tlie  previous  year,  the  gros*  earnines  show  a  decrease  of  $123,790 17 
wSrh  a  decrease  in  operating  expf-nHes  of  $44  645  84. 

Tbe  eot!re  expenditures,  including  interest,  taxes,  Ac. ,  was  $942,974  16,  against 
$974,485  60  in  18H8 — a  decrease  of  $32,161  44.  The  net  earnings  show  a  decrease 
of  $91,6:^8  78.  The  earning)  i  «r  mils  bave  been  $20,151  84*  Number  ot  passen- 
gers carried.  642,583.  Tons  of  freight  moved,  £08,692.  Numoer  of  miles  run  by 
trains,  476,805.     The  operating  expenses  vere  5^.28  per  e»nt  of  gross  esrnin<T8. 

OOXOBNSCD  BiLAKOB  SHnET,  VABOH  31,  1£69. 

Congtniclion 88,96^084  j  Capital  Ftock $8,800,000 

Equtpme  t 1)95,7: 0  |  Kir^t  mort:pi^A  bonds l,96u,000 

Bti  1  e^tat« 3^.(}08    Sorondmortgairo  b^nds 500,(X)0 

Materials VJS,(j(iO    'Jhir.l  motgrige  boud 99-2.00O 

WoodLiDds 19,'}40    SurpiU:}  earuiti)^.: 803.609 


Wlis  re  fclv»ibl6 8,406 

8tock<t  and  bonds.              80  •\743 

i>  I  e  from  rii  rood  compares jSH,860 

Dae  from  iudivl(l>iaiB       96.U63 

J 'lie  Iro.'u  po»t  officii  dep^cnt 6.71'i 

Ca«h   nd ca«h  a:!  ets ""....  78,tto8 

Davtonaiid  Miihigan  Rati-"*'.... 

road,  lei  cor  a  account 107,113 

$6,619,115 


iiiiertstO'i  l^onds 6,794 

Dlvieu-fs  unpaid 18,660 

Dividend  Mo  :«7 175,000 

Due  ra  Imad  companies 77,909 

^Mndivid'fsls 70,870 

'*  Uuitei  Stites 11,048 

Payrolls 64,917 

Bills  payable 819,i469 

$0,57*A1U 


4o4  RAILROAD  ITEMS.  [fiteemkf^ 

Dayton  akd  Mtchiqax  Bailkoad  — The  income  of  this  eompftoy  for  tbe  fiical  yor 
ending  March  81, 1869,  was  as  follows: 


Pjomf  el^ht ., $04,604 

**     pne^ensers 341,(i68 

**     malla.*. lrt,70J 

*'•     expre»B 84,Sll 

"    rents  and  loterost 1,018 

|],n40.28^ 
Bxpendltores 6^,4':9 

Ban.li'gB  le««  operaiiDg^  •' pentes. . ..  147.81  A 
Received  f  cm  b  .le  ot  BieamDoat stock  10,000 
Btf'vudfrom  sale  of  I  eal  estate tli 


Eqalpine''t ••• liXfOi 

Siahfnff  fuTi«) 

WideQliip  Bi}on  Bridge,  Toledo VSVi 

Constr-ctlon ^m 

Iaab  00  redomptlon  let  morL  bonds..     Ss,!!? 

$fi(a.iff 
Exce  0  of  exr  endUor-  s  OTor  rece'vts.  fiSO.'aS 
Add  b   ance  dne  C,  H.  &  D.B.E.  Oo^ 

lessees,  March  91,  1868         S9T.1SI 

Add  ba  ance  o  d  account  D.  A  W.  B.  S    19,ni 


Totol t.V8,483  $&im 

Intercut  paid  oo  bonds $245,^^85  !  De  'act  for  700  8d  mort.  bonds StO«u  0 

funeral  Interest  account 11 ,9Y7 1  

Insurance «,>2i) ;  Balance  doe  Lessees,  Marck  81, 18b0..  $:U7,14S 

Taxes,  State  and  NaUonal 40.038  | 

The  balance  of  the  First  Mortgage  Bonds  (recently  the  Second),  of  wbirb  tbers 
was  $229,000  held  by  the  lesaee?^  as  per  last  report,  to  pav  the  indebtedness  to  tbem 
for  redemption  of  First  Mortgage  Bonds  due  July  1,  1867,  have  been  difiposedof, 
and  the  amount  realized  therefor  ^9194,818  :^S/  has  be  n  applied  for  that  pa-po^, 
leaving  a  balance  of  $38,717  52,  which  baa  been  carried  to  this  year's  acconnl. 
Two  of  the  bonda,  Nos.  22  and  28,  have  not  been  presente-J  for  paymjct,  and  as  there 
has  been  no  interest  paid  on  them  Hoce  1869,  the  pro b»bt!iiies  are  they  bare  b«eo 
lost.  During  the  year  86  First  Mortgage  bonds  have  rarceU(>d  by  tbe  sink^ing  fend, 
making  an  increase  aa  shown  oo  the  balance  iheet  of  $194,000. 

A  mortgage  of  $700,000  has  been  recenUy  placed  oo  the  property  of  tbo  compaDy 
to  Stanley  Matthews,  trustee,  and  bonds  issued  f'K  that  amount  in  snmaof$t.<NO 
each,  bearing  interest  at  7  per  cent,  per  annum,  and  payab'e  October  2,  1SS8. 
These  bonds  have  been  paid  to  the  lessees  at  80  cen:a  oii  the  dollar,  in  part  paymeol 
of  amount  due  them,  leaving  a  balance  ttill  duo  of  $107,148  49,  and  tba  disooimt 
on  these  bonds  charged  to  profit  and  loss  account. 

COaDKK'BO  BATAKOS  PHKRT,  VABCH  81,  186$. 


Constmctlon  aceonnt $4,78\f»75  61 

Steele  interest  accouut . . .  •^^ 472,748  b5 

Fencing       ,..,.  8^,786  8' i 

TolQ  o  Improvement 888,6>^  76 

Bgbtolway :i«,40l  45 

Lima  shop  equipment 13,  U5  SI 

Real  estate 9^,7-8  17 

Bollingstock , €60,'(7t  18 

?lil"4  nceivable 1.624  00 

oWii  ol  Ferry sbii PR IIONMN) 

Indiv'daal  Rccoant 7.187  7 j 

Froflianaio«s 886.0T;i  91 

$6,627.7^8  99 


CapiU',oH $S,«K.315  08 

»»       l.dW 74,S57  « 

"      nutissned iii,4'4  «< 

1st  mortf^ge  doads i,8i'«0)iiOO 


2d 

8d 

Mo'tgKgo  bonds.... 

T  1  Uit  iieput  bonds 

Idc  me  bonds 

tin  s  pa.vai)  e 

lutt-rcot' oD  bends.. 
[r<(ii  i>  umI  R  K.  see-  nut 


•4;{  OU)  (M 
7.0.i»H'0 

16.^511;  00 
1,3110  iO 
4.«)UQI 
8,N7  hT 

t<$o  n 


C,n.Ai>.R.IUeseor«*MC*t 107,145  49 


$ff,»:,7«i  SS 

CiNOiNiTATt,  RiOBMOND  AND  CoiOAOO  Railsoad. — The  incomo  of  this  company  for 
the  tiitcal  year  oiiding  March  81,  1H69,  waH  as  foil  ws  : 

Fron  pussenrt  rs 

f  fight 

mails 


It 


kt 


ex  ress 

re  .ts 

miiesgtf  of  ears. 


tr0996i9 

4t.78Mi 

3,!<«»  tO 

iLinsi 

«j » 

a,.«i»» 

$i(M.«r4  4) 
Bxpcnditnres fio  ,ue».' SO 

Fxco^s  of  operating  <>xpeniles $1.16M^ 

Interest  paid  on  boodx 8U,14S  t^ 

General  interest  aud  ex clian;{e I5t  94 

InrnrHnco... n  i  U 

Taxes,  ^tlte  am  National 57^43 

Bx^'ess  of  exp  ndltoresoverrcculp's $46,08  84 

Add  bilunco  due  C,  •>.  AD.  it. It.  Co.,  Lestees,  March 81,  lS6i »,««  sft 

To  al  due  lessees $90,190  1 


1869] 


RAILROAD   ITBMS.  ^^5 


To  pay  off  this  indebtedoers  a  mortgage  cf  $65,000  has  been  made  to  Stanley  Mat- 
tbewfi,  trustee,  aod  boode  issue  J  in  sums  of  91,000  each  for  that  amount,  payable  Jan. 
1, 1889,  and  bearing  interest  at  '/per  cent.  These  bonds  hive  been  received  by  the 
lessees,  in  full  account  to  March  81, 1869. 

BAL4NCB  SmXT,  MAKCH  81,  1869. 


O  nstnictlon $SQ6,738  £9 

KqcipmeDt. 130,461  9S 

Bealtstate 'iOO  (X) 


Cpiteal  stock $882,600  fO 

Firsc  mori4nge  bonds C6«s000  00 

Second    "  "      -    65,000  00 


i-rofit  and  Joss ...  01,804  33 1  Interest  on  bonds  unpaid 9,08)50 

$l,<09,t8a  50  !  $1,009,6«9  60 

Nsw  York,  PaoriDKNoi  and  Bostost  Railroad. — ^The  receipta  of  this  company 

for  the  year  ending  August  81,  1869,  were  as  follows : 

HaUries 9,966  7j 

Wagei $97,30140 

Fuel «2,25148 

Newcars 82.874  90 

Taxes 33,in0  tO 

Dredging ^ 100  IT 

Waterworks 676  »0 

$lli3,T29  84 

Tdcteamings $235,453  21 

From  which  dednct-* 

Dividends,  IntereHt,  &c $n  4,447  42 

Sorplas ^ $21,010  -49 


From  pflssongers $3B8,6S<)  78 

"      f-e«vht. 244,493(0 

**     mail  service 12,J-61  54 

"     reot^.bftlance  aecon't 10,478  74 

**     gas,  b  •lanco  account WS  04 

^*     dividends,  titunL  gtoa  Steim- 
bOitCo 62,283  00 


$039,1::8  06 
Expenditures,  viz : 

Repairs  of  n^ads $83,506  73 

engines 2«.723  88 

»»          era 82157a» 

»*          bridges,  elc x«,729  «7 

Ferry 17,6*4  67 

General  expenses,  oil  etc 37,915  87 

Compared  with  the  previous  year,  the  gross  receipts  show  an  increase  of  $285,- 
728  18,  with  an  increase  in  expeoseis  of  $102,712  88«-making  an  increase  of  net 
earoings,  $138,010  75.     The  report  says : 

Acting  under  proper  authority,  the  directors,  in  November  last,  directed  the 
issue  of  $1,000  000  in  7  per  cent,  bonds,  payable  in  1899.  Of  this  amount  $400,000 
was  offered  for  baIo,  and  $888,000  disposed  of.  and  the  proceeds  applied  to  the  the 
payiiient  of  the  floating  debt.  Jn  a^ldition,  $66,000  of  the  old  6  per  cent,  bonds 
have  been  exchanged  for  the  new  issue,  and  the  balance  remains  in  the  hands  of  the 
Treasurer. 

LiABiLTTT  OF  CiTiKS  FOR  THKIR  BoNDS  TO  Railroad?. — TJpon  this  subject  the  New 
York  Timet  gives  tiie  fullowing  :  The  United  States  Courts  when  appealed  to,  have 
invariably  enforced  the  obligations  of  the  Wei^tern  cities  and  counties  to  pay  their 
f'onds  issued  f  r  railway  purposes,  without  reference  to  the  responsibility  of  the  rail- 
ways negotiating  or  indorsing  the  bonds.  In  the  State  of  Iowa  it  was  supposed 
that  a  Slate  co.istitutiooal  defence  might  be  interposed  tJ  the  collectioo  of  these 
bonds,  but  the  Fe  eral  Crnrts  have  decided  otherwise,  and  after  a  prolonged  and 
vexatious  litigation,  involving  a  conflict  of  juriadiction,  the  foUowiog  conclusion  has 
bt}(n  arrived  at.     We  quota  from  the  Des  Momes  State  Regieter : 

"i^he  conflict  in  the  decisions  and  orders  of  the  State  and  Federal  Courts  on  the  ques- 
tino  of  the  payment  of  certain  bonds  issued  by  various  cities  and  counties  in  this  State 
for  the  purpose  of  aiding  in  the  construction  ot  railroads,  we  are  glad  to  know,  is 
8  ib^tantiaDy  at  an  en  1.  The  late  deciaii  n  of  the  State  Supreme  Court,  in  the  case 
of  Joseph  Holman  et  a1.  vs.  Hirry  Fulton,  settles  the  question  so  far  as  any  inter- 
ference bv  the  State  Courta  with  the  processes  of  the  r'ederal  Courts  is  concerned ; 
and  thf  Federal  Courts  having  already  determined  that  all  the  power  of  the  Govern- 
ment under  the  control  of  the  C«>urt  should  be  used  to  enforce  its  mandates  for  the 
collection  of  these  bonds,  there  see  ns  t »  be  n«>  other  alternative  than  for  the  citiea 
and  counti»)s  who  have  issued  their  bonds  to  go  to  work  in  good  faith  and  honestly 
to  ciimpromise  or  pay  them. 

The  Cbbsafcaxb  and  Ohio  Ratlboad.— Richmond,  Va.,  Nov.  25.— The  st  c  hold- 
ers of  the  Unesapetike  and  Ohio  Rulroed  met  to- lay.  Tne  receipts  for  the  fiscal 
year  mere  $66J,2i;7,  and  the  expenses  $4l7,5n].  An  cfferwas  received  from  some 
parties  in  England  to  take  $800,0  JO  of  the  Company's  stock,  but  no  action  was  taken 
upon  it. 


456  RAILROAD  ITSH8.  [Dicmlcf, 

SuiTfi  AoAiMflT  Soumiftir  RAiLsoADfl.^Tb«WMhnig(oaeorT««poQdentoftlMHev 
York  Time$  gtves  the  lol  owiogf  etatemcsnt  on  this  rabject :  '*  Tbe  United  SUtet  Gov* 
ernmeDt  has  filed  bills  in  equity  in  the  Circuit  Coart  of  the  United  8tat««fartbi 
Eaetem  District  of  Tennessee  ni^ainvt  tbe  Eiat  IVnoesieeuid  Virginia  and  E«tt  Tts- 
nenee  an'i  Georgia  Railroad  C  ympaniet,  tbe  obj  fct  of  wbich  is  to  eal)««t  from  the  finl 
named  road  tbe  sum  of  $250,000,  and  from  the  last  naraei  tbe  sum  of  $SS6/K.O.  The 
evidence  of  this  indebtedness  is  boods  executed  by  the  President  of  the  roads,  aad  (faej 
were  given  m  security  for  the  purchase  of  engines,  rolling  stock  And  matefml  torecd 
oyer  to  tbe  roads  by  the  Government  in  August,  1863.  Tbe  payment  oftbebooda 
has  been  delayed  by  the  companies  in  the  hope  that  tbey  might  sec  are  from  the  Oov- 
emment  some  recompense  fir  the  great  amount  of  railroad  material  an  1  supptiei 
turned  over  by  these  companies  to  general  Bumside  on  hit  advent  to  EjL«t  Teooosee, 
in  1863,  as  well  as  for  the  use  and  ocsupati  n  of  the  roads  by  the  Union  snaisi 
from  1863  to  1865.  These  claims  against  the  Gorernment  amount  to  about  $700,000. 
The  UniU>d  states  has  taken  the  initiative  to  force  the  collection  of  its  claims  ia 
the  Cviurts.  Both  parties  are  billing  to  submit  to  tbe  decision  of  the  Courts.  He 
prayer  of  the  bills  in  equity  filed  by  the  United  2Statea  is  for  tbe  appoiatment  of 
receivers  for  t>oth  roads.*' 

ThK  CxNTaAL  AMD  UnION  PAOinO  JOKOnON  CoHTaOYVRSKT  PRTLSD. — WsfhttftOO, 

Kov.  23. — The  controversy  batweea  the  Union  Pacific  and  Central  P<icific  Railnad 
Companies, concerning  the  possession  of  the  niaJ  betweea  O^ien  and  Promontory 
Pomt.  the  settlement  ^>f  which  was  initiated  by  the  act  of  Uoogreits  of  last  spring, 
which  fixed  the  point  of  junction  atOgden,  has  been  finally  anan^^  by  an  agrtrem-at 
bi^tweeo  the  two  compatjies  as  to  the  price  to  be  paid  to  tbe  Union  Coropany  for 
that  portion  of  tbe  road  constructed  by  it  between  Ogden  and  Promootorr,  80  reQei. 
By  tbi^  arrangement  tbe  CentrAl  pays  to  the  Union  a  sam  understood  to  be  soidc- 
what  in  excess  of  $3,000,0  0,  and  comes  into  the  proprietory  poases^ioo  of  that 
portion  of  tbe  road  in  dispute.  These  essentials  being  now  settled,  b^th  enmpsaics 
will  proceed  to  erect  perminent  and  commodious  buildings  at  Ogdcn,  and  the  Treuory 
Department  will  issue  to  the  companies  the  remainder  of  the  subsi  ty  bonds  doe  to 
them,  except  such  Fum  as  may  be  retained  to  guarantee  the  final  oompletico  and 
equipment  of  the  roads,  in  accordane  with  the  rtc^mmandation  of  tbe  QoTemmeot 
Commissioners.    Henceforth  the  two  companies  will  be  as  one  line. 

FaxiGHTS  TO  TH«  WisT.— The  representations  of  the  different  railroads  competiog 
f'r  the  Western  train  tiave  met  and  agreed  upon  a  new  freight  tariff.'  The  wsr 
in  which  they  have  been  engaged  during  th-}  past  few  months  has  been  beneficial 
perhaps,  to  the  shippers,  but  ha<*  certainly  done  the  roads  no  sort  of  good.  Ra.s»  to 
Chicago  at  one  time  ntd  fallen  so  low  as  2$  cents  per  100  pounds.  Toe  preseot 
schedule  is  considerably  in  advance  of  former  oneSf  9a  will  t>e  seen  by  the  followis; 
list  of  prices  for  first  class  freight  to  the  places  named  : 

Cleveland,  Ohio  per  ICO  lbs.  |D  91 

CIncInutt'l  Ohio IW 

Chlcaffo.Il 1« 

8t.Loai^Mo 1  « 

lb«>  rates  for  the  other  cUases  of  freight  are  proportionately  increased.* 
Commercial  Advertiser, 

Laxi  Shore  and  Miohioa!!  Soothkrm  Railxoad— The  i^tns  York  7Vi&im«give* 
the  foUiving  as  the  terms  of  consolidation  accepted  by  tbe  Boards  of  D'leetora  of 
the  Lake  Shore  Road  and  tbe  Tol«>do,  Wnbash  and  Western  Road :  **  ri:e  Michi^ 
Soutbern  is  to  be  taken  at  100,  and  the  Toledo  and  Wabash  75.  I  he  coost^li  i^t^oo 
goes  intj>  tSiCi  January  1,  1870.  The  nominal  capital  of  the  newO.>mpany  will  be 
i50,0"0.00u.  Previous  to  the  UfWi  of  tbe  new  stock,  a  dividend  of  4  per  cent  vi.l 
be  made  o:\  the  present  stock  of  tbe  Michiga'i  Southern  R  md,  payable  Pebruarj  1. 
1S70.  The  transfer  books  of  the  Michigan  S'-uthern  Roail  wi  1  elo^eon  the  iMct 
November,  after  which  a  me  ting  of  the  stockholders  wilt  be  calle  1 1)  ratify  th-*  set  cf 
consolidation.  Tbe  tr.<ni>fer  books  oj  the  Toledo  and  Wabash  Company  ar*i  now  dosei. 
an  1  wili  remain  ^o  until  the  stockholders  bive  voted  upon  the  propnen^  Tbe  oev 
Cjmpany  will  be  called  the  B  ffalo,  Lake  Shore,  Chicago  and  Wab:isb  Rjiilroad  CiXD- 
pany." 


1860] 


BAZLBOAD  imo.  457 


Tbb  Paoifio  Railsoad  ComnsBiosmt  htLrt  mtde  their  report  in  full,  in  which 
they  efltimate  that  the  tarn  of  $1,586,100  will  supply  all  the  defi^iPDciee  of  the 
Union  Pacihc  road  from  Omaha  to  Promontory,  io  that  it  may  meet  its  dfiscription 
of  **  first-closff."  Of  this  amount,  1206.044  is  needed  for  the  aeciion  between  O^den 
and  Pfomontory,  which  is  claimed  by  the  Central  Pacific.  The  surpins  rollini^ 
ptock,  material  aod  BOpplies,  now  in  possession  of  the  road,  are  worth,  it  is  thought, 
absot  11,800,000.  Esti  nates  are  made  tor  the  amount  necessary  for  every  separate 
improvement,  and  the  whole  amount  required  for  the  Oentral  Pacific  Railroad  is 
gi?en  fls  (6*76,840,  aod  this  is  counterbalanced,  so  the  commissioners  think,  by  a 
surplus  rolling  stock,  material  and  supplies  on  hand,  worth  more  than  a  miliioD 
dollars. 

The  Raxlboads  or  YiaoiyiA.— It  if  reported  that  the  Richmond  and  Danville 
Railroad  Company  of  Virginia  has  paid  into  the  State  Treasury  one  hilf  of  the 
interest  due  t  e  ^tate  en  its  loans,  and  the  remainder  is  to  b<*  paid  on  December  16th, 
under  instruction  from  General  Canby.  The  Orange  an  1  Alexandria  Railroad  is  yet 
behind.  The  annual  interest  due  from  the  corporation  b  about  $18,000,  while  the 
Soutbside  Ruilroad  owes  the  sum  of  f252,0u0,  the  time  f)r  payment  of  which,  the 
Legislature,  satisfied  of  the  pecuniary  position  of  the  Company,  has  extended  ol  their 
own  accord.  The  Virginia  and  Tenne4*ee  Railroad  owes  about  $42^,000  interest  to 
the  State,  and  the  last-mentioned  road  appears  not  to  be  in  a  condition  to  meet  its 
liabilitit'S  at  present.  The  Chesapeake  and  Ohio  Railroad  is  negotiating  a  loan  with 
which  it  expects  to  liquidate  its  etttire  indebtedness  to  the  State,  pi iocipal  and  interest, 
in  all  about  $850,000. 

ViRcxiriA  A.«D  TxHNxa^Ei  RAiLaoAD  Bonds.— The  following  notice  is  published  in 
regard  to  these : 

'  Bondholders  of  the  V^x^nia  and  Tennessee  Bailroad  Company. 

'  Every  preparation  has  now  been  made  for  the  fanding  of  the  past  due  interest,  in  the  manner 
and  upoo  tlie  t^rms  of  which  notice  has  been  preTions  y  given. 

'•On  and  after  the  1st  day  of  November,  I  shall  be  glad  to  receive  the  past  due  oonpons  of  the 
Company,  and  to  have  such  commanlcation  upon  the  subject  otherwise,  which  bondhulders  may 
d^ira  to  make  in  furtherance  of  this  subject. 

"  I  shall  occupy  a  room  in  the  Company's  main  building  at  Lynchburg. 

"  CHAaLES  W.  Btatham,  Fundlug  Agent,  Lynchburg,  Va." 

Tbb  Susqukhanva  Railboaiv— Judox  JoBNsoa's  Decision  at  Roobbsteb.— Rochk£- 
TBR,  Notember  8. — The  decision  of  Judge  Johnson,  of  the  Supreme  Court,  was  tiled 
to-day  in  the  matter  of  the  Albany  and  Sorqaehanna  Railroad  Company.  It  requires 
the  receiver  to  pay,  first,  the  current  expenses  of  running  the  road ;  secon't,  the 
interest  due  on  the  Compuny's  bonds,  as  vrell  as  the  Albany  City  bonds  loaned  the 
Co.upany  ;  third,  it  authorizes  the  payment  to  the  receiver  of  the  balance  doe  the 
Comp}'ny  from  the  Mechanics'  and  Farmers*  Bank  of  Albany,  or  from  any  other  bank 
or  pttreuu.  The  receivt-r  is  not  authorixed  to  borrow  money  on  the  creait  of  the 
Caujpany  without  special  authority  from  the  Court. 

Abxansas  Bonds. — ^The  new  Arkansas  bends  exchnng^ed  for  old  obligations  at 
the  i^roerican  Exchange  Bank  in  this  ciij  amount  to  $4,4*26,<  00.  They  are  six  per 
rent*,  pait  of  them  date  J  July  1,  1869,  with  coupons  payable  semi-annually  in  NiW 
York  January  1  and  July  1;  and  part  of  them  dated  January  1, 1S70;  the  first  cou- 
pon being  annual,  payable  Jaouarv  1, 1871,  and  after  that  seroi-itrnual  coupons  Jan- 
uary and  July.  The  bonds  run  thirty  yeais^  and  therefore  mature  July,  1899,  and 
January,  19.0. 

Iowa  Cbntbal  Railboad. — Forty-five  miles  from  AeVley  to  Marshalltown  are 
DOW  completed.  Sixty  more  are  graced,  and  work  is  being  urged  along  the  entire 
line.  This  road,  as  our  readers  are  aware,  is  to  run  from  the  southern  to  the  notthern 
boundary  of  Iowa,  near  the  16th  meridian,  a  distance  of  V40  mil^s.  When  finishid, 
it  will  supply  to  St.  Louii  a  connecting  link  to  St.  Paul,  147  miles  shor'er  than  any 
fxistin^  route.  The  I  ne  ia  Ijwa  will  traverse  tbe  rich  central  basin  hetwsi'n  the 
Ceuar  and  i  esmoines  rivers,  prolific  in  coal  and  the  finest  agricultural  and  cereal 
prudu<  ts. 

RiCBMONO,  Va.,  Nov.  28.— Arrangements  were  cloae^d  ycslerday  in  New  York 
with  fcvitral  prominent  capilalista,  by  which  thti  Chesapeake  and  Ohio  ^nilroad  will 
be  con  >plft«d  at  once.  Among  the  capita  ists  are  W.  H.  Aspinwall,  A.  A.  Low, 
0.  P.  Huniington,  Fisk  &  Hatch  and  otherp. 


468  BAiutOAD  iTBiiB.  [Deecmier, 

Thb  Wslu-Fakoo  Ezpeub. — Aocordiog  to  tpedal  call,  a  meeting:  of  the  ■lock- 
holders  of  tlie  Welle,  Fargo  A  Oo.*s  Bzpree*  was  held  NoTember  25th.  The  object 
of  the  meeting  was  to  decide)  wbethrr  the  capital  stock  of  the  company  aboatd  be 
iocreased  from  $10,000,000  to  $16,000,000,  and  whether  the  additiooal  $  V00,0«^0  of 
stork  should  be  delivered  to  the  Pacific  Express  ConDpany,  who  demand  that  amomit 
ID  order  to  tosure  to  Wells,  Fargo  &  Co/s  Express  the  cessation  of  their  riTalry. 

Mr.  Eugene  Kelly  opposed  both  propositions.  The  great  point  claimed  in  faror  of 
the  delivery  of  fiye  millions  of  the  Weils-Fargo  stock  wae  that  the  PadBc  Express 
Company  had  an  exclusive  contract  over  the  Central  Pacific  Kailw^y  for  ten  yearv. 
This  line  covered  800  miles,  for  the  priWiegea  of  which  the  WelU  Pargo  Express  is 
expected  to  pay  $5,000,000.  The  Union  Pacific  Railroad  was  1,003  miles  long, 
i^ow  did  the  etockholders  kcow  that  some  enterprising  gentlemen,  such  as  comprised 
the  Pacific  Express  Company,  would  not  obtain  an  **  exclusive*  contract  over  the 
Union  Pacific  Railroa:),  and  thea  obtain  a  concession  of  stock  from  the  Welb- Fargo 
Company  t  He  did  not  deny  that  the  righte  to  be  conceded  by  the  Padfic  Kxprea 
Compiny  were  valuable,  but  he  dd  deny  that  they  were  worth  $5,000,000. 

Ml*.  Barney  B?id  that  the  Pacific  Express  had  been  orgaoixed  as  an  oppoeiUao  to 
WeiU  Fars^o.  The  officers  had  been  notified  of  the  fact  by  friends  in  California,  who 
had  a»K-ed  them  to  come  on  and  make  some  arrangements  to  fuse  with  the  oppos'- 
tion.  For  eighteen  months  the  Pacific  Express  had  damaged  the  bnsinees  of  the 
Wells  Fargo,  having  cffices  at  all  the  main  stations,  and  reducing  the  tariff  almoet  to 
a  nnn-payiog  point.  They  had  a  ten  years'  exclusiye  contract  over  the  Central 
Pacific  Railroad,  which  owned  three-fifihs  of  their  stock.  He  considered  that  the 
Pacific  Ezpresa  Company  had  the  best  of  the  s  tuation.  EUd  he  been  in  their  place 
he  would  not  have  taken  le^  than  cne-hidf  of  the  total  stock  of  the  Wella-FargD 
Expr.  89,  since  the  latter  could  not  cot>pete  with  them.  Unlees  the  eioekbolders 
decided  to  carry  out  the  arrangements  proposed,  it  would  Leoessitata  a  dosing  of  ths 
concern. 

Evet.toally  a  vote  was  taken,  resulting  as  follows :  Id  favor  of  increasing  the  capitd 
stock  to  $15,000,010,  50,658  ;  io  favor  of  delivering  the  extra  stock  to  the  Pa<>ifie 
Express  Company,  50,658  ;  against  the  first  proposition,  844,  and  against  the  s«cood, 

no. 

Mr.  Kelly  and  others  of  the  onponents  of  the  oppansion  of  the  capita]  stock 
refused  to  vote  ;  thus  the  vote  drawn  out  was  not  mi  re  than  half  cf  the  actual  capi- 
tal suick  of  the  Company.  While  these  gentlemen  di'l  not  vote,  the-  did  not 
endeavor  by  injunction  to  prevent  the  voting ;  but  Mr.  Etigene  Kelly  appealed  to 
and  I  rocured  from  Judge  Cirdos  >,  of  the  Supreme  Court,  an  iujuoction  furbiddinit 
the  iaeuing  of  the  extra  stock.  This  was  served  upon  the  Presiuent,  Secretary  and 
Trd'k^urer  of  the  Company,  and  will  prevent  any  further  action  in  the  matter  fx^ept 
by  permission  of  the  Courts. 

Columbus,  Cbioaoo.  and  Indiana  Cbntxal  Railboad. — The  following  expUios 
itself :  57  Broadway,  New  Turk,  Sept.  22d,  1869. — For  the  pur>  ot'O  of  cuotra<tic  in^ 
rumors  in  reference  to  the  toccessful  ope>'ation  of  the  Columbus,  Chica?it  arid  ln<iitna 
Cen'ral  Railway,  un  er  the  lease  to  the  Pittsburgh,  Cincinnati  and  St,  Loom  Kailway 
Compaity,  which  lease  ii  dated  on  the  22d  day  of  January,  18^9,  the  undersigned  t>e/ 
leave  to  say  to  those  intercBted  in  the  securitiefi,  that  the  road  is  succM?afully  operated 
unier  the  leare  b*  the  sati.^iaction  uf  the  parties,  and  shows  a  continued  iccrea.'C  of 
eamini^d,  with  every  prospect  of  a  successfal  futnre  traffic. 

The  lessees  have  maJe  great  im;  r6vements  in  the  coodiUon  of  the  road  anri  its 
dep(*tn,  shops,  and  o<  her  buildings,  an  J  are  adding  largely  to  its  rolling  stock  and 
faciltlieti  fur  doing  business,  and  will  continue  to  iiiakc^  wbatevt^r  expenditures  may  \m 
oeceesary  to  meet  the  increasing  traffic  of  the  future. 

Thomas  L.  Jbwbtt, 
President  Pittsbuigh,  Cincinnati,  and  St.  Louia  Railway  Conpany. 

E.  E.  Smith, 
President  Oolombns,  Chici^o,  and  ludiaoa  Central  Railway  Company. 

The  Cbxdxt  Mobilekb  Casb. — Habrisbubg,  Ncv.  25. — The  jary  in  the  Credit  Mob- 
ilier  case  came  in  at  one  o'clock  with  a  verdict  for  the  Commonwealth  ol  f  407 ,483  3^- 
The  amount  claimed  by  the  Commonwealth  w  ts  $520,546  87.  The  jury  <l*><tuci<d 
$2,890,600  from  the  nominal  value  of  their  dividends,  which  wai  over  #i^,U.O,OOU. 


1860] 


BAiLROAD  irms.  459 


NoETH  Caeouva  Railhoao. — The  Raleigh  Sentinel  sayg  thai  <*  the  North  Carolina 
Railroad  Oompany  have  let  and  farmed  out  their  roa  ^  for  the  term  of  twenty  year«, 
to  t'-e  Raleigh  and  Gaston  Railroad  Company  and  othersi  for  an  annual  rent  of 
$340,000,  to  be  paid  <  n  the  first  day  of  January  in  each  year.  The  rent  is  secured  by 
a  deposit  m  bank  of  cash  or  its  equivalent  in  United  States  bonds  ;  or  good  an  i 
acceptable  railroad  or  other  bonds  ;  this  deposit  is  to  be  permanent,  and  if  there  ia 
occasioD  to  app'y  it,  then  it  iis  to  be  renewed,  and  at  o  ten  as  necessary.'* 

—The  annual  report  of  the  EvansTille  and  Crawfordsville  Railroad  for  the  year 
eo'  iig  August  81,  .869.  eootatnsthe  following : 

**1d  accordance  with  the  proposition  made  to  our  boniholders  fur  a  twenty  years' 
f  ztension  of  their  bonds,  we  have  begun  the  redemption  of  the  two  sev»  ral  iesue^,  b/ 
redeeming  upon  advertbement  from  the  lowest  bidders,  In  January  and  May  last, 
twcnty-feven  bonds  of  $1,000  each,  for  the  sum  of  $S2,7tJ6.  This  redemption  will 
be  continued  on  the  first  da}  a  ol  January  and  May  of  each  year,  till  all  the  bonds  of 
the^e  issuee  are  paid. 

I'he  Evansville,  Henderson  and  Naphville  Railroad,  to  whose  completion  we  an* 
ziously  look  forward  for  Southern  connectif  r>s,  has,  for  financial  revs  jns,  progressed 
slowly  fo'-  the  past  year, and  its  completion  will  probably  be  delayed  another  year. 

A  direct  Northern  connection  <  f  this  road,  under  the  name  of  the  Evansville, 
Tore  Uaute  and  Chicago  Railrray  Company,  has  been  organized,  to  comtructa 
road  from  Terre  Haute  to  the  State  Line,  in  the  direction  of  Danville,  there. to  un^tu 
with  the  Chic-ifo,  Danville  and  Yincennes  Railroad,  and  has  solar  progressed  with  its 
surveys  and  stock  subacriptious  as  to  justify  the  hope  of  its  completion  vithin  about  a 
year  trom  this  date.  Its  Northern  connection,  the  C.  D.  A  V.  Railroad,  ia  being 
rspidly  completed.  About  thirty-three  miles  of  the  track  ia  laid,  and  its  builders 
conteu  plate  its  campletioo  to  the  Indiana  State  Line  during  the  coming  year  ht 
farthest. 

XAEM1N68     AND    XZPKX8X8   FOE  THE  TBAE 
BSIDIKO  AUGUST  81,  1869. 

From  Pas lengerd...... $185^933 

Freight 245,775 

Express ri,4iS 

M^llService 9,4&J 

KoaiB      i^  j  Qeueral  Expenses (}l,635 

UseofEnglneeandCars 8,73>l  

I     Total  Expenses $-^85,451 

Total  Earnings $436,928  I 

NetEaralngs $171,620 

OOICPAEATITE    8TATXXBMT    OF  BAEK1N08  AND    EXPENSES    FOE    THE  TDEEE  liAST    T8AES. 

1866.7.  1867.8.         1868-9, 

Total  Earnings  tor  Year ^ $6U7,79:i         $45JJ,186         $454),97a 

ToUl  Operating  Expenses ^ $34i,4  4         $i&S,3(i6         $285,451 

NetEiTuings ....flCS.U?  $ir.,OiO  $m^ 

Deduct  loterest  and  Taxes 1U8,3^6  lu8,tf46  lU(),63a 

To  Credit  Income  Account $51^1  $8,873  $64,89^ 

eXEBEAL  BAI.ANOB  aBXET,  AU0e8T  £1,  1869. 


t 

•4 


OPEEATINO  BXPEN8BS. 

Ranniog  Poad $75,474 

Maicenancoof  v^ay 74,(i:3b 

Bepuinng  Bridges  and  Stmctares...  11,740 
Repairs  of  Mfichinttry 5tf,U61 


ASSETS. 

CoDStruction  of  Road $2,410,984 

Eqiilpmeot 861,414 

Kual  Eatai  e  not  necesvarv  for  Ui>e. . .        6,888 


LIABILITIES. 

Capital  Stok  paid  to $998,971 

Kractional  Scrip b^M2 

Unciaimod  t^tocH  Dividend,  1856...  86.147 


District  Pair  uroand  Stock 1,OjO  i  Prcferrud  Stock ](}U,0(X> 

Vaelonnaod 9  401    Seven  Per  lent  Bonds,  Main  Line  .  1,01K).OOU 

ShpSappiies 18,6:5  I  LeM  Redeemed  by  binkine  Fat.d..       kl.iM} 


Cdth • 40946 

Puefrom  Avents 16,760 

OpenAcconnts 9,707 


Stfven  Pei-  Cent   i3ond  ,  Rockville 

Extension 150,003 

Doe  other  Lines 10,7tf-^ 

Oilier  Liabilities 8d,Ul 

9 


Total $:i,875,(n8 

INCOME  ACCOUNT. 

Earnings  Expended  for  CODatraetlOD •» $414,687 

balance  of  Accoant , 54,06ii 


$3,875,037 


460  RAILROAD  iTiia,  [Dfttfliier, 

— Tho  Trea»arer*«  report  of  the  AtUntic  and  St.  Lawrenes  Railnnul'  Gnrnpaof 
phowB  the  following  for  the  year  eodiog  Juae  80, 1869.  The  capital  sto^  matd  u 
$2.494,ltOO,  divided  as  fol  ows  : 

438  vbarea  In  Federal  currency,  of  $10*)  each $*tJM 

fi.0«)3th!ireBin  BteriiniTcarreDcy,  of  £100,  01  $484  each ....  S«4£A,«t 

S8  fjracUoUiU  shure  rlglitfl,  of  $10  eich tOB 

$2,ttun 

Daring  the  pant  year  an  arranzement  has  been  made  with  the  city  of  Portland  ia 
reft-rcnce  to  their  f  1,600,000  loao,  by  which  the  16,000  ahares,  preTioualy  reported  u 
held  by  the  city  aa  collateral,  and  upon  which  do  aa^esameDta  hare  t.«ea  paid,  have 
been  surrende'-^d  to  the  company  and  Ihe  certificatea  cancelled,  and  are  oov  om<- 
eaed  capital.  Up^  n  the  Federal  aharea  t  jvo  divtdenda  of  $2  per  ahare  Save  l-eeD  pud 
at  thia  c-fficc,  and  tl)e  divi  ienda  upon  the  aterling  aharea  have  been  paid  in  Looooo. 
The  debt  of  ihe  company  haa  been  re-^nced  the  past  year  $169,200,  by  paymcottto 
that  amount  upon  the  conQpan>'a  obligationa  to  the  city  of  Portland.  The  tnUl 
debt  now  ia  $3,324,8L0,  conaiating  or : 

Oblicationa  to  the  citv  of  PortUind  for  the  flrat  and  second  loana  of  (heir  bonds....  fl.8niOO 

(Tompany'a  mottj^age  ooiidB  of  1S51 614.SU0 

Compaoy's  stcrliui;  bonda  of  Not.  1, 1868,  un  85  yeara,  £100,000  st  $484  to  tit  £1<0..  AM,:m 
Conip»ny'8  mortg^Ro  sierllnj^  bonda,  6-9C,  at  $4  84  to  th<i  £1,  £i8i,900,  equal  to..  8fi,OI 
AmouDtdue  ou  izchange  of  bonds IM 

The  leseees  hav^  promptly  provided  for  the  payment  of  the  diTideods,  the  int«rsit 
on  the  debt  and  the  contributions  to  the  eiokiog  funds.  They  have  b\mo  aaanmed 
and  paid  the  excii^e  tax  of  five  per  Cf  nt.  on  the  company's  mortgage  bonda,  thoa  giv- 
ing the  holders  their  full  six  per  cent  interest. 

-—The  rates  of  figeight  from  New  York  westward  are  now  m  follows : 

First  S'oond      Third  Fourth  nth 

class.  o'aaa.        claa*.  claca.  cIsm. 

StLonia $160  $1  aO  93  MS  « 

JLouUvlle 143  1|18  W  80  0 

KlIWAUkeo 116  100  75  65  M 

Chicago 156  2  00  ';6  65  60 

Oinclnuatl 118  96  "SO  M  48 

indutoiipolts 191  96  74  64  ES 

CJlnmbua 108  88  6i     '        61  4i 

To'edo 100  8U  00  69  40 

C'eveand 80  67  61  4i  84 

Buffalo 60  60  40  10  tf 

Detroit HO  "it  t4  47  IT 

^Wetiern  B,  R.  OaMelte. 

— The  Tennessee  Railroads,  who»e  suit  with  tbo  Uoiled  States  was  terminated  lart 
week,  were  found  during  (he  war  by  onr  armies  in  a  dilapidated  condition,  with  Utile 
or  no  rulliiig  atork.  'i  he  government  put  them  in  repair  and  equipped  them  for  ita 
own  me,  operated  them  during  the  war,  and  at  its  close  delivered  them,  with  the 
improvementa  it  had  made,  to  the  compaDi3s  owning  them.  It  charged  the  eompa^ 
nies  fur  these  improvements,  amounting  altogether  to  at>oot  $2,000  000. 

Now,  these  f  ompanies  had  received  aid  from  the  State  of  Tenneeaee,  for  wbidi  tbty 
were  require'!  to  pay  interest.  They  failed  to  pay  this  interest  during  the  war,  asd 
the  government  vihich  had  possession  ot  their  loada  did  cot  pay  it  fwr  them.  8o 
whi-n  the  government  presented  its  claims  to  the  Bunreme  Court  rgainat  tie 
compsnirs.  the  comoaLies  presented  counter  claims,  first  for  the  use  vf  the  roada  dur- 
ing the  war,  fod  next  for  the  inteieat  still  doe  the  State  of  Teroeeeee,  which,  tbe 
companies  claim,  should  have  been  paid  by  the  government  for  tbe  time  it  had  full 
|f4.sseFeion  of  tbe  roads. 

According  to  the  terms  of  the  settlement,  as  they  are  reported,  the  roada  ars  Co 
remain  in  the  control  of  the  con  paniea,  and  tbry  are  to  pay  firet  the  interest  dos 
tbe  State  of  Tenoeaace,  but  the  whole  amoont  of  the  net  earning*,  after  payii^  thia 


iseo] 


BAXLROAD  ITE1I8.  461 


debt,  must  go  to  pay  the  goyeromeot  demand ;  and  tbej  give  their  own  bonda,  or 
those  of  the  St^te,  to  the  amount  of  $8/^00,000,  to  ioaure  the  performance  of  the 
contract. 

The  roads  concerned  are  the  Fast  Tenoeaepe  it  Virginia,  from  noxviHe  to  Bristol, 
on  the  Vi'etDia  line ;  the  £aet  Teonesaee  A  Oeorgia,  from  KoozviUe  to  Dattcn,  (la. ; 
the  NaHhville  A  Chattanooga  ;  and  the  Na^hTille  A  A orth western,  which  eztf  ndA  from 
NaehTille  to  Hichman,  on  the  Mississippi,  but  during  the  war  was  operated  oo)y  to 
Johnsonville,  nn  the  Tienneesee,  78  miles  from  Naahviile.  The  whole  length  of  there 
roads  la  about  460  miles. 

The  Western  Railroad  Gazette  girea  the  following : 

—The  city  couneil  of  St.  Iiouis  last  Tuesday  pa*Bed  an  ordinance  transferrine:  (he 
city's  ioterept  in  the  Missouri  PacHs  Railroad,  of  $500/<00  of  sio<*k,  to  Chnrlee 
Gibson  and  T.  J.  Jaiyary.  1he  grantees  give  88,000,<  00  hi  bonda  to  tuilci  within 
two  years  a  railroad  through  the  center  of  St.  Louis  county,  to  Howeirs  Ferry, 
on  the  Missouri  river,  where  it  will  connect  with  the  projected  road  v'a  Louisiana  to 
Keokuk  and  to  Styuth  Point,  where  it  will  connect  with  the  Missouri  Pacific,  short- 
ening the  road  to  Kansas  City,  and  offering  a  new  connection  to  the  S^u^hweat 
Branch  of  the  Pacific  Railroad  to  the  presoLt  directora. 

-—It  is  reported  that  arrangementa  will  be  completed  in  a  few  days  for  the  tran»fer 
of  freight,  without  breaking  bulk,  between  the  Iron  Mountain  and  Mobile  &  Ohio 
Railroads  at  Belmont,  Miasouri,  and  Columbus,  Kentucky. 

—The  articles  of  consolidation  and  amalgamation  of  the  Western  Pacific  Rail- 
road and  San  Fiarcisco  Bay  Railroad  Companies,  and  the  inoorpor  <  tinn  of  both 
under  the  name  ot  the  Western  Pacific  Railroad  Company  have  been  tiled  in  <ho  Sec- 
retary of  State's  office.  Directors — L^laod  Stanford,  C.  P.  ITuntington,  Mark  Hopkina 
Cbarlea  Crocker,  E.  B.  Orooker,  E.  H.  Miller,  Jr.,  and  £.  B.  Stanford.  Capiul 
stock  $10,000,000. 

—The  St.  Joseph  Gazette  says  that  Mayor  Hall  of  that  city  haa  made  arranf^ements 
for  putting  $1,500,000  of  the  bonds  of  the  St.  Joseph  A  Denver  Railroad  on  tite  (^ew 
York  marvet,  and  that  he  has  purchased  a  new  locomotive  for  the  road  and  uon 
•noQgb  to  complete  it  to  Hiawatha. 

— ^A  temporary  bridge  haa  been  built  over  the  Kansas  riTer  at  Lawrence  for  the 
me  of  tlie  Leavenworth,  Lawrence  A  Qalveaton  Kailroid. 

—A  committee  of  the  Cincinnati  Board  of  Trade  which  has  been  exaroiciog'the 
eondition  and  prospects  of  the  Fort  Wayne,  Muncie  A  Cincinnati  Railroad  lecom- 
mends  the  loan  of  1500,000  seven  per  cent,  gold  l>onds  to  aid  in  the  completiou  of 
the  42  miles  between  Muncie  and  filuffloo. 

—  The  Treasury  Department  has  p&id  to  the  Unioa  Pacific  Railroad  Company 
$487,000  in  bond^  fc^r  that  portion  of  the  road  between  the  1,020th  mile  post  anl 
Ogden,  at  the  l,0S4th  mile  poet.  The  Union  Pacific  Company  now  owns  up  to  the 
latter  point,  but  the  remainder  of  the  distance,  between  Ogden  and  Promrnt  ry 
Point,  ia  still  in  dispute.  It  hss  not  yet  t>een  settled  whether  the  Union  Pacific 
Company  shall  bare  that  part  of  the  road,  or  whether  it  ahall  be  giyen  to  the  Central 
Pacific. 

—  The  Cincinnati  and  Zaneaville  Railroad,  eztendiaa:  from  Zanesville  to  Morrow, 
182  miles  in  length,  together  with  other  property  and  franchises,  ihclu'Jini?  the  fran- 
chiae  to  be  and  act  aa  a  corporation  of  the  Cincinnati  and  Zanesville' Railroad  C  >m- 
pany  in  the  State  of  Ohio,  will  be  exposed  for  sale  at  public  yendue,  in  the  city  of 
Cmcinnati  on  the  Ist  of  December.  The  mioimom  price  fined  by  the  Court  is 
$1,008,968.- 


462  RAILROAD  rrxMS.  [J>eeankr, 

— The  Bangor,  Oldtown  And  Mi! ford  lUilroad  Co'npan?  bare  aold  tbcir  r<^, 
better  krowo  as  the  Venzie  Kailroad,  moning  from  Bao^or  to  Hilford,  tbirteen  mile* 
in  length,  to  H.  G.  Jewett  and  Noah  Woods,  acting  in  behalf  of  the  European  and 
Kcirth  Ame^icnn  Cornnaoy.  The  price  ia  not  made  pablie.  The  aale  t«kea  effect 
on  the  Ut  of  Dcctmber*  This  ia  •  ne  of  the  oldest  raiiroada  in  the  country,  nod  will 
be  r^i'iroDtinued  an  »o<>n  aa  tracke  rai  be  laid  from  the  Earopean  and  North  Ameriean 
Railroad  to  poioia  accummodAttd  b)  the  Veosie  Road. 

— M^yor  Cole,  of  ^t.  Loats,  has  vetoed  the  ordinance  of  the  Commoo  Gooneil  poll- 
ing the  city's  Pacific  Railmad  stock  to  January  &  Gibson  for  $250,000  in  bonds  of 
the  new  railroad  throat^h  Sn  Louid  count'*.  Tbts  transaction  ia  distinct  from  that  of 
the  County  Court,  wbirh  sold  l>alf  a  million  of  the  county's — not  the  city**  stock  fcir 
$250,000  iu  c«eh  to  Uud«on  E.  Bricig**,  who  leadd  a  party  in  the  Pacific  directory 
opposed  to  January  and  Gibson. 

— The  work  of  laying  the  track  of  the  Mobile  and  New  Or1ea?M  Rail  road  was  com- 
menced at  Mobi'e  on  November  8th,  and  waa  witnessed  by  moat  of  the  promineot 
citiaens.  This  road  is  b-'in/  b.iilt  by  Northern  capitaiista.  The  grading  ia  well 
advanced,  t><e  iron  hM  nearly  all  arrived  and  an  early  completion  of  the  road  and 
connection  with  New  Orleans  is  piomised.     Toe  distance  ia  188  milea. 

^The  DenTer  Pacific  Railroa'l  19  not  yet  completed  to  Etoos,  ae  has  been  reported. 

It  is  open  for  40  miles  sou'h  of  Che«  fnne,  and  it  ia  20  miles  further  to  Brans.  There 
i«  one  stage  libe  from  (he  terminus  to  Evans,  and  another  between  Evans  and  Denver. 
The  road  will  be  ci  mpl«ted  to  Kvans  before  the  winter,  however,  leaving  but  ftOmilca 
of  staging  to  Denver. 

'—The  injunction  lately  obtained  by  the  Rutland  Railroad  Cospany,  staying  further 
proce«-dinKS  before  the  Siipreme  Court  of  Vermont  in  the  case  of  Cbcever  •  Hart, 
Trustees,  v»,  Rutland  aud  Builiogton  Railroad  Company  and  otbera,  baa  been  do- 
aolved. 

—Louisville,  Ey.,  has  voted  by  a  maj  lity  of  about  600  to  anbacribe  $500.0^  to 
the  projected  Louiavi'lA,  New  Albany  and  8t.  Lonis  Air  Line  Railroad.  General 
I.  M.  6c.  John,  Chief  Engineer,  in  the  report  of  hia  survey,  eatimatea  the  cost  at 

$3,700,688. 

^The  stockholders  of  the  Louisyille,  Cincinnati  and  Lfzingtoo  Railroai  Company, 
at  a  late  meeting,  passed  a  resolution  rejecting  the  river  line  for  the  conoeetiag  Itoe 
between  the  Louasville  and  Nashville  and  the  Looiaville,  Cincinnati  and  Tjerin^on 
roads. 

Upon  the  recommendation  of  the  Secretary  of  the  Interior  the  President  baa 

accepted  a  section  of  sixty-three  miles  of  the  W<- stern  Pacific  Railroad,  and  ordered 
the  booda  due  on  account  of  the  construction  thtrreof  to  be  issued  to  the  company. 

—The  6t.  Louis  A  Southeastern  Railroad  Company  baa  executed  a  mortgage  Ibr 
$:aO,000  to  George  Opdyke  and  Pbilo.  C.  Calhoun,  of  New  York.  It  ia  promised 
that  work  ^hall  commence  on  this  road  at  Shawoeetown  next  aprtn^. 

The  city  of  Memph's  on  the  dth  iost.,  sold  ita  at  ck  in  the  Miasissippi  A  Ten 

nesaee  Rsilrnarl,  (Memphis  to  Grenada.)  amounting  to  $800,000  to  A.  T.  Lacty, 
agent  of  the  Miasisfippi  River  Railroa  i,  fur  $40,000. 

UnJer  the  reorganization  the  Little  Miami  road  controls  the  Colnmbua  A  Xemi, 

Dayton  A  Xeoia,  »nd  Da. ton  A  Westfm  roads.  The  entire  capital  stock  paid  up 
is  $3,858,600,  and  th*3  traveled  length  196^  miles. 

^Evansville,  Ind  ana,  has  voted  to  subecribe  $800,000  toward  the  building  of  the 
£  vans  vi  lie,  Carmi  and  Paducah  Railroad.  Thia  makea  the  oooatruction  of  the  road 
a  certainty. 

— ^The  unfinia>ed  portion  of  the  Che»apeake  and  Ohio  Rai'road,  from  Covfaigloo 
to  Cutltttsburgh  and  Pomt  Pleasant,  haa  been  placed  under  contract 


1S8&]  rODuo  DiBT  or  tiii  uxiibd  btitis,  403 

TIB  DEBT  STITBIENT  FOB  DBCKIBBB. 
Th9  IbllowiDj;  is  ihe  official  aUternent  of  the  publia  debt,  u  appenri 
rrom  the  books  and  Treasurer's  returos  at  the  oiose  of  business  on  the 
list  day  of  NoTamber,  1869  : 

Debt  iHiarlos  iBtereal  In  Oo1b> 


i'.'oriM.. ..!.."!!!!!"!!:'.'.!'.!!!  At  plDu.snerUjreinfromJua'ao.-n  I     1,^^10  u 

•■•.MCB WJ.UT.  from  MjJ.l.  IMS' :...  •      tfioSxW 


•;*,SWt WretnrromKoTemberl.lHl' ■        BISXIW 

j>,'»«-i.".".'".".'!r.'!;.".','!.";.".';;»i)rjjjjg™ju]rj.j|«;* ^  'ujy ^ 

A<znntaoffleb(b«*rlnjilBt>tK>tlneDlD K,l(JIjaa«» 00 MMmAM   » 

(;oBpoiu  das,  net  preMiilcd  Cir  p«>  ineDt iua1Ji1>  OS' 

ToUIUtereit •il^,S<0«t 


AggT8f»t*ofd8l)»be«rtnrli>WrMtliiliiwfiilmon«j' |«l,IW,iiK>  lO  |1,  1J,*».  .u 

Debt  o«  irtalch  Inlereal  Uaa  CBsaed  olnDe  inalBritri 

I'l.  DsBda MWaredDoeamberai.lM) UfimO)  |»>  01 

l-i.  llsud* Malawi  DecBmborai.lMT 1).1M  00  swu( 


S'AIKV.fr'Tn'H.MstBndHiHxiil,  ISM 

CsTT'sh.  DOIM.UitBHd  April  lad  Mar.  iMa 

7S-lD*i.tTiikn...Uuiir<d  AniniM  Ittai  October  I, 
S'(.  1  *«  •»n...M>tBntd  fraiu  Jin.  i  u  April  1,  ail 
«-a,C<rllt,orliid.Muu  idii  »nouidii«YiiiS&... 


1,    yemn...    ^^'J^j^  ['!j^|„'-*''°°^      ;;;;;;;;;;;;;;;;;;  rajM  M         M«7  M 

*4Wrti  or  debtlOB  which  Int.  hHCBMid  since  mmur tt^,0»  N      IW^oTS  . 

Debl  bearlns  wto  Intereala 

Aathorliloi  icti.  CbineUroCluag.  Amt-oaUtanil 

Jtllrn.lMliad  Feb.  li.lBO DDIBMd  BOlM JII1,M9  11  , 

KtU.e  AJaly  11. lU.Alltr. »,'«,. U.S.  lCiril-»a<lBriiotei aa6.<nojn)  ui 

Mifchs;iWJ.'° ?,..!.....'.'!;!.'Ceriiaoiitoi  tor  gold  dBpoi4ii4^.'.'.'.''.*,''.'!li!i.\;.'."..    M^SM.MOro 

Aat«(atBordsblbeBrliisDOlalerut It31,^,;a  in.. 

Beckplt  alallon. 

D«Bra»i»ii'ol«T«h»TiiCMii— BondiM  Sn-eont m  J9'.  luTii) 


M1.10  .ooui 


364  comcxRoiAL  ohbokioli  jotd  bxyixw.  [2>«on»'««r, 

Vmn  BBAmnro  so  Jmxawr^ 

Demand  and  lent  tender  notM 9flML11t39  Si 

Foetal  And firacllonal  can enctr aS.K*5«MI  68 

Certlflcatee  of  gold  deposited U9KJMO€0 

ToUl  debt  bearing  no  Intereat tmjMl.'m  IS 


Total |9j6fl5,?86  TB9  n  fa,H7JS  2  tr 

Total  debt,  prln.  *  Int.,  to  date,  Includlug  conpont  das  not  preeentod  tor  pajment  |8jt48wSSM8B  It 

Avomrr  rx  na  TBEA-evBT"- 

Com fiaBJflM0  77 

Currencj lUSi  .7««  W 

Sinking  mnd  m  (7.  t».  coin  lni*Bt  b'da,  and  accM  int.  thereon 3i.4i  cM*> 

Uther  u .  8.  coin  int.  b'da  pnrcaaeed,  and  accr'd  int.  thercon 5S  4s6jS0S  W 

Total tir^«  Hi  U 

Debt,  leM  amonnt  in  the  Treaeary ^,4as&4,7eS 

Debt,  leM  amoant  in  tiie  Treasnrj  on  tbe  Iftt  oltlmo 2,tfl,iS  JSiM 

Decreaeeof  debt  daring  the  past  month T^i.fSl  ts 

Decreaae  of  debt  Blncelf arch  l,i8f» t<i>J3Aat1i 

Bo|&da  tMined  to  tlie  Paellle  Hallroad  Comp^nlesy  Interest  paymble  la 

liaiv^mi  MoBejr. 

Tntere»t  Interest      Interest   Bala-ieeef 

r>i..*.M*.*nrTMnM  Amoant      accrued  paid  br      repaid  by  Inte't  paid 

Character  or  issae.  ouistandlng.  and  not  I'mtcd     trans itMlon  by  rmted 

yet  paid.  States,    of  h  aIls,Ac    states. 

Union  Pacine  Oo |27,t7S,00O  00  ^76,Si4;i  ;tt|t,08l,80B  n|M05,Ml  61    •^iSj«38 

Kai.sas  P.idflo,  lat  j  U  J*. 

K.  D 6,308  000  00    m^itT^'O  8Si31S  00     eUJ24  90      SCSI'S  10 

Bloat  City  and  PaclUc 1,^2832000     40  70«  »  V6.S0B  »9  16  27       M.49r  0 

CentralPaclflc 2«J»0,00000  Us»,6W  W  l^Jijm'al    w.' •  «  l/SM^SW  M 

Central  Branch    Union 

Paciflc.assignee*  oi  At.  _ 

chisoQ  ft  PDce's  P*k ]j600,000  00     10,000  00      10U08  20        B J90  It  SO^H  A 

Western  Paclllc 1,614,0  0  00     18,875  61       M^OJ        


Totallssaed 68,6153^00    1,581,20510  4,964^22  51  l,S36.'aO  01   t,iaOM8» 


COMMERCIAL  CHRONICLE  AND  REVIEW 


Monetirr  Afftlns— Rates  of  Loano  and  Dlfooaots— Bonds  fold  at  New  York  Stock  ExAaage 
Board— Price  of  Oovernment  decaritiea  at  New  York—Course  of  Consols  and  Acertc^ 
8ecarities  at  New  York— opening,  Highe  t,  Lowest  ani  Closing  Prices  at  the  New  York 
tttock  Bxchange- General  MOTement  of  Coin  and  Balllon  at  New  York-Cowae  of  Gold 
at  New  York— Coarao  of  Fore  gii  Exihange  at  New  Verk. 

November  has  been  obaracterized  by  a  stead j,  quiet  Goa*ve  of  basiocas  ia 
Wall  Btieet*    The  mooey  mnrket  has  been  more  set  tied  than  was  expected. 

Althongb  tbe  month  m  neaally  one  of  special  actiTity  io  the  pork  trade  of  the 
West,  DO  considerable  araoaots  of  corrency  were  sent  lo  that  section  aotil  tbs 
third  and  fonrth  weeks,  when  the  remtttaDces  to  the  West  and  Soath  combined 
aggre^Ated  probably  o!os.-apoD  $5,000,000.  This  drain  was  met  witboat  mock 
iDOOnTenience  to  the  banks,  and  prodaced  little  effect  up  in  the  gr^neral  tone  of  the 
laarket.  It  is  indeed  somwehut  remarkable  that,  with  fucb  n  comparatively  li  .bt 
anpply  of  leg<tl  tenders  in  ibe  banks,  these  withdrawals  should  have  produced  so 
little  effect;  the  explanation  being  peihaps  aff'^rdei?,  Grst,  io  the  ptrtial  re  om  of 
money  from  the  Ea^t ;  next,  in  the  ii^al  disbursements  of  tbe  .Snb-Tri^aory ; 
and  farther  in  tbe  moderateness  of  the  ttdvances  upon  stocks,  the  priv-e^  of  wbidi 
bate  mled  below  the  avtrage.    The  rate  of  interest  on  call  loins  bus  raogfd 


1860]  OOMKSROUL    OnROKICLB  AND    RETIXW.  465 

between  5  aud  7  per  cent ;  bat  at  tie  close  of  the  month  a  hardening  tendency 
was  apparent,  and  7  per  cent  qnite  general.  In  discounts  ther3  has  been  a  gradaal 
improTcment  of  tone  bat  with  little  al'eTiation  of  rates.  In  the  absence  of 
failares,  the  aoeaaioeas  engendered  by  the  excessive  pressure  in  October  has 
gradually  disappeared,  and,  with  the  exception  of  paper  coming  fiom  those 
blanches  of  trade  which  have  suffered  from  a  late  fall  in  prices,  there  has  been  a 
fair  degree  of  confidence  in  credits.  As  western  collections  have  come  in  slowly, 
and  merchants  haye  had  to  give  onosually  liberal  credits  to  traders  ia  that 
section,  ti  ere  has  been  a  very  heavy  supply  of  paper,  and  it  is  to  this  cause 
mainly  that  tha  high  rates  mast  be  attributed.  Daring  the  latter  half  of  the 
month  the  demands  for  discounts  from  the  pork  sections  came  in  competition 
with  local  paper,  and  stopped  a  declining  tendency  in  rates  which  was  becoming 
apparent.  Foi  the  first  half  of  the  month  prime  double  name  paper  ranged  at 
10  to  16  per  cent,  and  sabsequently  at  9  to  12  per  cent,  while  for  single  name 
of  like  grade  the  range  has  been  12  to  24  per  cent 

The  causes  which  we  have  previously  noted  as  tending  to  restrict  speculation 
still  continue  to  operate,  especially  in  the  stock  market.  In  United  States  bondst 
the  transactions  for  November  show  a  decline  of  nearly  forty-five  per  cent  com- 
pared with  the  same  month  last  year.  In  that  class  of  securitiesy  however,  there 
bes  been  considerable  investment  business,  but  rather  in  the  way  of  sellisg  than 
buying.  The  government  purchased  911^)00,000;  and  yet  prices  have  declined 
2i  to  4  per  cent.  In  gold  value,  however,  bonds  were  worth  more  at  the  dose 
than  at  the  opening  of  the  month ;  for  the  price  of  gold  declined  from  128f  on 
the  first,  to  121^  on  the  30th,  and  at  London  Sixty-two'd  advanced  If.  The 
decline  in  gold,  by  rendering  the  interest  upon  currency  inveitoients  more  valuable^ 
has  caused  a  laige  amount  ol  stock  to  be  exchanged  for  railroad  and  other  bonds, 
and  the  expectation  that  Oongress  may  adopt  some  measures  for  funding  the  six 
per  cent  debt,  at  a  lower  rate  of  interest,  has  also  iodu-^ed  free  sales  by  the  same 
class  of  holders;  the  purchases  of  the  j^ovtrnii.eQi,  however,  have  absorbed  the 
supply  ef  bonds  coming  from  this  -oiir(x\ 

BONDS  SOLD  AT  TRB   N.   Y.  STOCK    BXCBAN6C  BOABD. 

OlAMes.                                                      iSfts.  1  Still.  Inc.              Dm. 

U.S.  bondB SWi-ft-SMKl  |13,1«,850  $      .  „  |0,'80,050 

Btato  A  city  bit  ds M  (t.(H)0  v:s»,6(>0  ....               isv,  Oi 

Company  boud^ ],Idi.7uC  WSM^.lw  116.0CO 

Total— '»'.v.mber |i20,r)<W,600     $Im,3J«.Ii60  .  .       $l!,:il,i5J 

Blnoe  January  1  Sti5,l&4  b4)     S9:a,54S,ti59    fSTtSttl/.t/J  

The  daily  closing  prices  of  the  principal  Governraent  secun  h^  .•!  iht*  New 
Tork  Stock  Exchange  Board  in  the  month  of  November  as  n*  •  n  4.  iini  i»^  ihe 
latest  saie  officially  reported,  are  shown  in  the  following  state  int- m  : 

PBICB8   or  OOTERNXBNT  8BCt7BXTXB9  AT  KBW  TOBR. 

Day  Of  .r-6'8, 1881.-», -6'i,  (6-90  yr».)(i>ui'<»n 5*8,1(M0. 

month.  Coop.    Reg.    ISSi.    18SI      IbtS.   inw      '*^i.       "o-      C'pn. 

1 iitf^i  n»x  lis     iisH  tu     I'fi     \\>i   u  '4  108 

S injK     119  US)»    118^  Holt  1  5 <i  r.t^M    lVt% 

3 lis       315  ....      ]:.3S  llj>i  llo>.  Itft^i     ..,.. 

4 lUH  nT¥  115X  lUH    11^>«'      »•'?»  11  H  A,^}i    1071C 

6 UH}i  115>i  118><    1  H  11%^  n6>« 

« 11«V     n5X  118H*113)i  11«  lis  1HJ        !<VTJJ 

a lib      usv   I  ds   n<i     110     US     ioi% 

9 .....    115X    118X    I  3^    lid       li5Ji    107X 


4ff8  couuFBCitL  cnnn^tcLB  akd  Kmnr,  [-OMtMbr, 

10 ir«    .  ...  Wit  liW<  il^X  nsH  wrx 

II htk  iirv  ii-«  iHfi   list*  iKH  Ilex  1K14 

It inn  in\   i>'-K  <ii        ...  i^iH  iisN  .  .    I'^ii 

w ..      HH4  iiiv  mtt  ]»*(  iisjt  , ...  iT.t 

ML inw  'HK  1  tK  itsx  i'»K  iisM  10  «i 

11 iitjt   lift-*  Ilia   ....  ii'K  nsx  w-i 

II li^-X  ....    inx  i'6)(  iii«  

I" (Bolldar). 

II inv  iisit   ii««  iiB«  itBK  mx 

W ....      IIKK  llS'-i    llJJf  llfl       lUK  KM 

H iiTD   t  SM  iin     iiajt  USX  I'l  lit     .- . 

« it-it  SH«    in  IIBK    11S«  I'Ml   1"V\ 

S«. Ill       1IBI('  USX    1IR.V  1"X    li&V  1UV    lOTK 

« in«  iiw  i"tf  iB«  mx  .- 

•*. in     iKH  ia>i  ii»K  iHx  lis  iT-.t 

9T m«    .  TH  II»«  INV  IMJi    IM-.- 

«• HEX    1I93<    lllf  llOK    111  IIU*    1'3K  lint    MH 

M     m  .   IKK  111     uix  ....  II  X  ....    in 

rir*! IIBU    1I>\     lie  1I8K    114  ItH       IIBX  I>*S'    lOS 

niehwi iiBV   >>''V   11a  mx   ih  iiax   imx  nta  hx 

I/>«»t iiAX   i»H    iiix  imx   111  lox   ii>V  ii*V  inv 

CluMOG 1U       ll'X    lllX  111       IIIK  1134    1»N  11>X    UT 


llw  dolDeM  Id  the  Block  mtrket  fs  tofficientlr  ladtntod  b;  the  bet  iiuX  Um 
ttlea  of  all  klndi  of  atockB  at  the  EicbangQ  bave  ftmonDled  lo  only  703^18 
•faaret  for  tbe  month,  agtio^t  1,713,627  shares  id  Norember,  1868.  Thn 
depreMioD  U  tbe  more  liagnlar  from  the  fact  that  the  eareiasa  of  tbe  road*  ban 
been,  in  the  main,  tatufac  orj,  and  that  the  coaditioo  of  tbe  money  market  hu 
ftTored  tbe  cairybg  of  Btockg — coadiliona  which  it  might  be  Bippaaed  wenU 
bare  iDdnced  aa  activs  ipecuIatlsD  for  higher  prioea  It  t>  rerj  evidmt,  bow- 
erer,  that  the  cwaatioo  of  tbe  "  wateriDg  "  mania  haa  takeo  awaj  tbe  tpedil 
Indocementa  to  BpecnlatioD  vbich  have  iDBaeDoed  tbe  market  for  the  laat  two 
jean;  aodaa  tbeohpitalornemrljallthe  roadsrepreeented  on  tbe  Stock  Ezchaogt 
has  been  largely  iecreased,  and  the  fall  in  tbe  prices  of  pradnce  raisea  a  pniK 
ability  that  railway  compostca  may  Bed  it  nmeMary  to  rcdnce  tbe  ratei  of  Gvighti 
then  is  a  Tery  general  diipodti<»i  to  postpone  BpecalatioDs  §k  a  rise,  votil  it 
beoomea  more  eppareot  bow  tbe  net  earning  are  likely  to  squro  with  tbe  Inaesied 
capital ;  and  yet,  as  tke  roads  are  at  present  earning  good  diTideodi,  and  prisn 
of  stocks  tre  modentte,  there  ts  no  immediate  iadocement  le  operate  fix  lewa 
prieei ;  In  this  poeition  of  aHidn  there  is  very  obrleos  ouiae  tbr  the  exticw 
moderatloa  of  btuinesii    In  prioei  there  has  been  eonsiderabla  Irnfilatily,  bet. 


1809] 


OOMMKRCXAL    OBRONIOLB  AND    BBVIKW. 


467 


on  the  BTtra^,  qootatioDs  are  lower  at  the  eloee  than  at  the  opeDiog.  The 
VModerbilt  stocks  have  been  especially  weak,Xew  Tork  Geotr  1  bayiog  dedioed 
from  192^  to  169}  ;  Hodsoo  River  from  172^  to  154,  and  Harlrmrrom  141}  to 
129,  fiom  whii-h  it  is  to  be  inferred  tha'  the  cjupletion  of  Mr.  Yanderbilt's  coo- 
aolidation  achfrme  has  been  followed  by  ao  extensive  realiziog  by  the  larger 
holders  of  stock. 


nOOXS  SOLO  AT  TBB  HSW  TOEK  VTOOK  ■XOHASIGB  BOAED. 


Claiiee.                                                                       1868.  1809. 

Bank  sharei S,846  !,«)"» 

Railroad   '*   M'^.SIS  •89.486 

Ooal           "   11,6«9  8.455 

Mining      "    .       «S,730  l«,v« 

IinproT*nt*'  11,900  MOO 

T«Icgraph»»   StLlOl  ll.OW 

Steamship"    ....       48,9t6  M,88S 

Bzpr*aaAc''  »•.       45,874  18,191 

Total-November 1,718,617  708,829 

■Uoe  Jannaiyl 18,619,678  10,688,994 


Increase.       Dee. 

l,14t 

...  .  90S776 

8.814 

.      .  1S,6S5 

9,000 

14,610 

....  86,080 

I7,lfe0 

1,008,888 

...  .       8,086,67d 


The  followioflr  table  will  ehow  the  opening,  highest,  lowest  and  closing  prices 
ot  all  the  railway  and  miscellaneoas  securities  sold  at  the  New  Tork  Stock 
Exchange  daring  the  months  of  October  and  November,  1869  : 

4 October »  * ^November » 

Railniad  Stoclcp^  Open.  Hich.  £dw.  Uloa.  Open.  I^isrh.  L'W.  Cloa. 

Alton  &  Terre  Haot. 80        88        80        88  XO  39  SS  ^5 

**  **         *•     nrel 66         60  66         6»  68         5S         58  rs 

BoB'oa.HtMfordAErio IS        IS  17        17K  H         11  9X  10 

Chicago  dfc  All  on 1-16  146  186K  1>6  140^  159  145  148H 

do  do    pref. 141  147  186^  147  146jli  149\  148^  1<93^ 

Chicago,  Burl.  A  Qnlncy  .     ^.  lft6  165  V»iH  160 itf  155  156  147  168 

do       ANorthweBt*n 71^     74X  «9X     ^}i  69        76X  ^%  "^^X 

do  do  pref 84i^     85^  88X      84  84         89  88^  873i 

do       A  Rock  Island 109)4  llu  IVi  1081^  103  lOOjl^  108K  \^H 

Coliimb.,Chic.^blnd.  C »)i     Sr^^  S9         86j^  98        98  %\}i  %\H 

^^^^'J^^^^^^r^. SB  104  K6K     8ft3tf  t6         86  79  80 

do   Col.,Cln  AlLnd 74J^     78  T^X     78  78        78  74X  I^H 

Del.,  Lack  A  Western 110  111  109  111  111  111  20»X  K'6 

Dubaqno  ASlonxclty 1U6  no  106  1061^  109  lii9  108  I'V 

Brie........ 88X     WH  99j!tf     80  99.V     80  97  ^H 

do  preferred 66        69J^  64        54  61        68  49  46i^ 

Harlem........ 185  149;^  WM  I48itf  141K  141K  19>  1» 

Hannibal  A  St.  Joseph 110  118  105^^  106X  lOT  V^H  107  107^^ 

do  do  pref Ill  m  ]08  109)tf  107  JOtt  1(16  106 

HodsonRlver 161J^  174V  156M  1T8  lltK  H^K  164  186 

Ulnols  Central 187  139  189  189  137>^  140  181  188 

Joiiet  A  Chicago PSitf     99)^  99J^     9«X  

L«keSho.dfcMlch.8ooUi 83        94K  eljl^     917^  91ii     ^\%  S6K  9^X 

Mar.  AClncln.,let SO        90  18        18  90        81  18X  «0 

Kichlfran  Central 199  194  119  199  119X  181  119jtf  18t 

aiilwankee<fc8t.  Paal 689^  70  66X     VtK  679^     71  ^^%  67M 

w  _5?'  ^«        do  pref. 8l3  882^  W)i     80  7»X  MJtf  WM  89H 

MorrlsAEsses 87  H8M  8«J^       88  87>tf     88  W  S7 

New  Jersey 117itfl90  il7itfl90  190  1*0  liO  190 

do        s^rlp... ,*^ 119  119  119  119 

•r    do     ^S*^'*^''*^ IWf       107^i     fi7       100         95  983^      88  t;8 

Kew  York  Central 178       196      171^   198X  Wl^  1»^  ^^^  IJJ^f 

do        AuRCstk J?      ....      96  96        87  87 

do        scrip    89  88X     W  W 

do        AN. Haven 198       140       1«6       140  180  141  188M  140 

•r^J?  ..  -u -,do     scrip 180       181       180       180J^l89  141  la  141 

Korwlch  *  Worcester 106  108  108  108 

Ohio  A  MlSflsalppi 97J^     98X     M         M        96  97^     ^H  S[X 

do  do       pref. 70        70        70        70        69  69        60  69 

Panama 940       940      SOO       910  907^907)^908  901 

Pitts.,  F.W.  A  Chi.  guar SSis'     mX     88^     66K     86  88        86  87V 

Bwidlnsr. 98^     97        98        96$     WK  99|^     »H  WS 

RomerW.AOgdensVg 7      .... 106  105  105  105 

Thtcd/venoe 1973tf    197^    197ii   197^     ... 

Toledo,  Wab.  A  Western 69V     67        65        64  68tf  68^     M  65 

do       do        dopief 78'       80        76il^     78  75  76        75  75 


COttltBROIAt    OHUKIOLS  AXD    EKTIIW',  [Dweentbtr, 


ADMrletaCMl 40  40  «)  «l           

CnmbetUDd  CoiU n  M  MM  STX  R         IS         9B 

t>aiti«-lTUla  UmI KO  ISO  MO  no             

IM.AHid.CBna    Ita  IM  110  Iti  IM       IH       IK)       1 

PkdflcHall n\  MK  MK  MK  MU     «         61 

BMUm  Waut  •  oir«r .  13  UM  11  14         

ItniuiinekCllTLMd....^ t)t  <>f      W      "M  *         •  t 

Culoa 6S  (M            GO  MX  «         itJV      BOX 


S^  iiiL".'.'.'.'.'.'.'.  '.'.'.'.'.,'..'.'.'.'.'.'.'.'.    1«M     19"     10        IW     »«  »1C  IS«  10« 

14K     «  liX  ia«  1«» 

OtK     MK  MK  MV  »K 

lOS       lD«>i  iOiit  V»)(  lOBM 


tt«n*»r*».-.;.-^..^ w_     iS      ^      ^!{    iS.-    HS    HK 

K 
Amcrlna  K.  Dnioa. 


Udiod  Talatmpb KS     n        M        MK     >*K     MK     MV     »K 

—       —      —      ™      -,j(    ,_., 


,    MX     MX     MM 

HX      10         40X      — .      -»      -—      --™      — 

Wdb,  PuKD  A  Co. IB        N)f     11        Mj(     a        KX     UX     IM 


UmlMdStatM H^      DO         4DX      UK      UK     A4K 


Tbe  conrM  o(  tbe  gold  pTemiam  hu  been  otetdilj  dowDwan),  ftom  128|  on 
Ibe  l«t  to  13li  OD  Ibe  30ib.  Tbe  decline  hu  been  pof  ttkll^  dne  lo  tbe  targe 
ripply  on  tbfl  nuibet,  eooBeqnent  npon  the  lightoeM  of  tbe  exports  of  specie  for 
tbe  piet  II  mootbr.  The  chief  canee,  howerer,  ia  in  tbe  large  Bales  of  crao  bj 
tbe  Treasorj,  Ibe  efifect  at  which,  alter  baviog  been  atared  olT  hj  epecalition  and 
doobta  as  to  tbe  penisteace  ot  8ecret>rj  Bootwell  io  hii  policj,  bat  Ust  banog 
iia  forte.  Tbe  total  amoont  of  coEd  adrettiaed  bj  the  Treasory  for  sale  durii^ 
tba  moDlb  was  111,000,000,  the  last  iDitalmeot  of  <l,0O0/)0O,  offdr«d  oe  tbe 
30tb,  waa  not  lold,  Mr.  Bontwell  decIiDiog  to  aell  belov  122,  while  the  bidt  raqged 
between  12063  and  121.30.  Tbe  exports  of  specie  for  the  mooib  wm qoile 
oomioaL  Tlie  nceipta  on  cnstomi  dotiee  amoooted  to  S9,190,801|  igaJv* 
<7,e3e,8Ba  >D  November,  1868. 


FoftigB  ezAange  bas  mled  itMdr  at  fO{  below  tbe  qweh  iklpinis  rste,  tbi 

market  baviiv  been  weU  suppled  with  both  Mntbero  ud  local  bilta,  wbile  a 
nmdnata  unout  of  bond  bilb  bare  been  n    '      ' 


18C9] 


lOORNJtL  OF  BANKING,   CUKRINCT,  AND  riHABCK. 


ooraas  ov  voansH  BzoHi>aB  (W  dati)  at  nw  tobz. 

London.  Parla.      AmMerdnm.  Breman.    Hunbnrg. 

cenla  foi  emtlina*         cent*  tar      cenUfuT     cenlefoi 

Dan.  H  iience.  rordoUir.  Uniia.        rli  dnJir.  "  ' 

1... ifti  mmx  «-)i'M'3i  "■""--  -"-'"-.■- 

■  .,. >iw!ifi6ioi  siejtasisa 

8... iifji^'i*  6Hi;i»*iii^ 

4... lll-J.MUM  BiaxftSlflW 

B io»i,ai  MX  Biisasirtt* 

«... losiiiieiost  bitumMH 

«*... HW-tSilUO  MIH^IHIi 

y.,. lifl!i*llW  BKxSslBii 

10... iiw!.ii«iii!i  enitSiJiHs 

u... nh'ia:w  a:-^a3n;« 

1*... llWVUliWI  M9h«M1t<« 

13... llt.i    Ir^lWX  MB(i©Ml« 

1!..., liW    &W)ii  bit^Ui^lt 

1* 101  e«i'«K  BiSi.a.-.i:x 

IT...       ■  i<«  4HW),  najii^SiT;! 

lo!!; 109  iai"fK  I  i^H®  6 

»)  ,,  ■ lua   ©iinH  I  85i,j"e.iii 

«... iiH'   (S.oiii  !  »!.M.w 

»<!!' im'i'^.ui*  I  «-.;,^ 

«...  iub;4:ii"^X  I  «-.5.Sm 

»*...■■■■     •  1     Mi»:"'  I  )>S!i.i.ait 

»I... im!,,clir;i  SV.O.'M 

«... ■KUi.fSIH  I  »^ifr.1il 

■J lOi  <,ii«i(  I       _  UMaas 

Ocl..l!«R3 IIW    aiOSJi  MSIfOnSK    41    ^IH    "KKWiX    S»Ti«U^V 

U.I„Ud9....        -...IWiKailAjV  BlDXl^lHK    40SaWX    l3ik»TII       Ui^^St 


TI-.1 


l-JDJ 


7  Mi'-m 
".■.©Tl* 


JOURNAL  OF  BANKING,  CURRENCY,  AND  FINANCE. 


BMunu  of  ttia  I1«»  YoA,  PhlUdBlphli  and  Botton  Baokl. 

Below  we  give  ibu  retaros  of  the  Banka  of  the  three  cities  aioce  Jbo.  1 : 


Date. 

«!l«i,JM 

Clrrnl  tMo, 

i(S«j.w» 

L,  Tand'i. 

FabnuirS.  . 

.   SM. 

;^4.Me.4M 

6S,4*t,l»!! 

Febrnary  M.. 

[3»0.*>7 

8-.,aM.S«l 

8<,)M.«1 

ivi.irTJ.tm 

B»,834,CS1 

F«bra«ry»i.. 

«-.(« . 

ai.i  i.^.ai 

M,M7.IH1 

Bftvm.m 

gdirnarj  «.. 

»l,«3S.lja3 

84.aii  Ml 

ii»:»i8,ns 

lu.su.uM 

March  «.... 

[ftntinal 

1R.4;«.«M 

si.an.Kss 

181,<IU1.4II 

4D,ltn,-'W 

KlrdUil 

.  atii 

■«i..CB:. 

17.WS,hll 

MWO.W 

^s,a«,«8 

4-i,esM,«iii 

aareblO 

is.ai:i,a» 

M,u:8io 

181.BU1.WJ 

March  SI 

,  a'pi. 

•JiU's-B 

11.0:3,711 

31.717,814 

ijiu,  1 1.1.1(10 

BO."6m'iU3 

April    S 

.  IM. 

.nai.eis 

)O.T'T,S«> 

3i,i«;6.iiiii 

17a,M».7fl« 

4S,4«(.Ma 

April  10  .... 

i->l.t!7 

B.791,^1 

a4,w..«w 

Kl.4fl^a■^o 

4S,H1.,71S 

April  n      ,. 

as.}, 

.IM.StS 

7.aii,7j» 

8i,4Se.i8i 

17S,«H.4M 

«!*::.■.■.•. 

MVI.'tW 

Bs'inisas 

.  'Sli«o 

•I.M.»  K 

g4,M7i.0i3 

siM^UM 

B«,iW^7W 

ln.i«1.4-» 

8a.»SM>w 

»',a3/»7 

»,1«.,M3 

.  «IW 

..umM 

IS,S74,:M 

8»Bn.7»3 

1H,8W.**» 

M.Bei,8«l 

1  Ma.  401 

90,414.869 

B7,s  B,;»a 

Ml  J  k'.'.. '.'.'.. 

!i-r.,wi 

n.HJi.iw 

BT.aiu.ns 

."1 1.-M1 

iH.uei.ru 

8s.a-s.wis 

ia9.1«4,Wi 

B1,i(».4« 

JoMlJ 

■  -^' 

I'VM.HO 

84,141.  no 

11W,8(»,W1I1 
4bl,774!e!« 

Bn.-«.,»58 

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