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THE

MERCHANTS’ MAGAZINE
.

AND

COMMERCIAL R E V I E W .
A P R I L , 1864.

PELATIAH

PERIT,

LATELY PRESIDENT OF THE CHAMBER OF COMMERCE, AND OF THE SEAMEN’S
SAVING BANK, NEW YORK,

BY REV. LEONARD BACON, D. D., OF NEW HAVEN.*

A man eminent in the profession which had been his employment more
than fiffy years, venerable among the few survivors of a former genera­
tion, and widely honored for his wisdom and his beneficence, has passed
away. To him we may apply the words in which the Idumean Patriarch
speaks of himself and of the honor and affection which waited upon him
in the days of his prosperity: “ W hen the ear heard me, then it blessed
me, and when the eye saw me it gave witness unto me.”— Job xxix. 11.
W ho that has seen the dignified figure and the benevolent and cheerful
countenance of P elatiah P erit since he began to reside among us—who
that has known anything of his character and life— who that knows the
esteem and veneration which attended him in that great community of
merchants of which he was so long an acknowledged head—can fail to
see some degree of resemblance between the princely Patriarch in the
land of Uz three thousand years ago, and the princely merchant whose
burial here has just added another to the honored graves in our New
Haven burying ground ?
I cannot hope to satisfy the feeling which has induced me to attempt,
not uninvited, this memorial. All that I can do, is to give an imperfect
outline of Mr. P erit’s life, as illustrating his character, and as yielding
some lessons Worthy of our thoughtful attention.
P elatiah P erit , the son of J ohn P erit , a merchant, (whose family
name indicates his descent from that Huguenot imigration into New
* Mr. P erit removed to New Haven in the fall of the year 1859 since which
time he has attended Dr. B acon’s Church. We feel very sensibly that no pen could
so fittingly portray the excellencies of this eminently Christian merchant as that o
his able and appreciative pastor.—Ed. H unt’s M erchants’ Magazine.
VOL. L.— NO. IV.
16




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Mercantile Biography:

[April,

England, which has contributed its full share of illustrious names to our
history,) was born at Norwich, June 23, 1785. His mother was a
daughter of P elatiAh W ebster, and to her second son she gave her
father’s Christian name, her husband’s name having been already given in
connection with her own family name to the elder son J ohn W ebster
P erit . P elatiah W ebster was not undistinguished as a merchant, a
man of letters, and a patriot. Born at Lebanon in 1725, and educated
at Yale College, where he graduated in 1746, he was a classmate, an inti­
mate friend, and a life-long correspondent of the learned President S tiles .
At about the age of thirty years he engaged in mercantile business, “ more
from necessity than from inclination,” the clerical profession having been
his earlier choice. He established himself in Philadelphia, and soon
began to prosper. Before the commencement of the revolutionary war,
he had acquired a considerable estate, but had never lost his love for
study or of literary labor. As might be inferred from his intimacy with
President S tiles , he was an earnest lover of his country, and was active
in the assertion of American rights against the aggressions of the British
Government. While the British forces occupied Philadelphia, he was
arrested for his loyalty to his country, and was closely imprisoned in the
city jail more than four months, and plundered of a large portion of his
property. Early in the progress of the national struggle for independence
he directed his studies to the currency, the finances, and the resources of
the country. As early as October, 1776, he published a pamphlet on the
great question in every war, “ How to sustain the public credit.” Three
years later he commenced the publication of a s.eries of “ Political Essays
on commercial and financial questions,” which were collected and repub­
lished in 1791. The seat of the national government being at Philadel­
phia for the first few years after the adoption of the Federal Constitution,
Mr. W ebster was often consulted by members of Congress who desired
to avail themselves of his intelligence and experience in matters of public
economy. Senators and representatives, especially from his native State,
often spent their evenings at his house in free and earnest conversation on
such subjects. These things are mentioned because of their connection
with the childhood of Mr. P erit . His mother’s home, after the early
death of her husbsnd, was in her father’s house, and there the mind of her
son, almost from infancy, began to be interested in questions relating to
the commerce and resources of the couritry; just as any intelligent and
gifted child is always interested to some degree in whatsoever is a con­
stant theme of discussion at home among those whom he most respects.
Those evenings of free talk between his grandfather and men eminent
and honored in public life were always among the cherished recollections
of his childhood ; and they had their effect upon his intellectual tastes and
habits, and afterwards upon his choice of a profession.
His grandfather died in the year 1795, and not long afterwards his
mother, with her two boys, removed her residence to this town for the
purpose of educating them at the college which had been her father’-s
alma mater. After completing their preparatory studies at the Hopkin’s
Grammar School, they became students in Yale College. The elder of
the two brothers, J ohn W ebster P erit , graduated in 1801, and after­
wards became a distinguished China merchant in Philadelphia, where he
died about twenty years ago. P elatiah P erit graduated in tiie class of
1802, a class which was in many respects distinguished. Entering upon




1864.]

Pelaliah P erit, late o f N ew York.

24T

the four years course just as President D wight was completing those
changes by which the college system was adapted to the new order of
things in the country, when his great power in the college pulpit as well
as in the teacher’s chair was at its height, and when the celebrity of his
name was beginning to fill the whole country, it was the first class which,
because of its numbers, was placed in two divisions under the care of tw
tutors. Of those two tutors, one was H enry D avis, who was afterward
President of Middleburv College, then elected President of Yale College,
to fill the place of President D wight , then President of Hamilton College.
The other was that eminent man, still lingering among us in his vener­
able age, President D ay. From these two men, aided only by a few lec­
tures from a professor of Mathematics and Natural Philosophy, the two.
divisions of the class received all their instruction through the first three
years of their course. Then, through the remaining year, they were under
the immediate and almost exclusive instruction of the President. No
former class since the founding of the institution, had ever been so favor­
ed in the character of its teachers. At the same time the class was dis­
tinguished throughout its course by orderliness, sobriety and good beha­
viour. No member of it ever incurred any of the higher college censures,
such as expulsion, rustication and public admonition. They had, all of
them, or nearly all, come to college with the intelligent and manly purpose
of preparing themselves, by a liberal education, for honorable usefulness
in society. Thus their influence upon each other— and let it be remem­
bered that the mutual influence of class-mates is a most important element
in the process of a college education— was salutary instead of being mis­
chievous, and was a help instead of being a hindrance to the influence of
their teachers. *
Another distinction of that class was at the time unprecedented, and, in
some respects, will ever remain unparalleled. That I may explain this
let me say that at the beginning of President D wight ’s administration,
(in 1795,) irreligious opinions such as the.n were widely current in the
country, had obtained great ascendency among the college students. The
time was a critical one in the history of Christianity here and throughout
the world, and the religious condition of the college was very much what
we might presume it would be at such a time, when skeptical habits of
thinking, on all the themes both of the Christian revelation and of
natural religion, were far more prevalent among educated and half-edu­
cated men than now. Those extraordinary revivings of religious thought
and feeling by which the Spirit of the Lord lifted up a standard against
the enemy, and turned back the incoming flood of infidelity, had not then
begun in the churches. Consequently the young men who came to college
from parishes and families in which the influence of the Puritan discipline
still lingered, and who were of blameless morals, according to the standard
at those times, came generally withoyt any deep religious convictions and
principles, and too generally went as they came. When that class of
1802 entered college in 1798, only one of the'sixty or more made any
profession of having experienced the power of godliness, and that one died
before the third year of their course was ended. During three and a half
of those four years, very few of the students were members of the Collette
church. At the administration of the Lord’s supper in .September, 1801,
(the Sabbath before commencement,) not one undergraduate was present
as a communicant. But in March, 1802, tfiere began the first great re­




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Mercantile B iograph y:

[April,

viving of religion that had taken place within the college walls in more
than half a century. On the Sabbath preceeding the commencement in
that year, twenty-four of the class then graduating, sat together, and many
of the three younger classes with them, at the table of the Lord. That
class of 1802 was the first of all the classes whose education within those
venerable walls has been attended with so great a blessing.
One of those whom that reviving of religion introduced to membership
in the college church was P elatiah P erit . He had entered college an
amiable and dutiful boy, ingenuous, tractable, genial, and of peaceful
manners, but with no fixed and earnest purpose to live for God and for
eternity ; just one of those beloved and hopeful boys who are so often
ruined by the temptations of a college life because of their amiable and
attractive qualities. He graduated at the early age of seventeen, not only
unharmed by the temptations through which he had passed, but inspired
with the principles that form the highest and noblest type of manhood.
He bad considered and settled the question whether to live for himself or
to live for God, and thenceforth his long life was a testimony to the ear­
nestness of his desire.
W e see something of his character in the fact that immediately after
leaving college at that early age, he established in Norwich, his
native place, a school for young gentlemen and ladies which gave him a
temporary employment, and in which he was entirely successful. At that
time he was expecting to spend his life in the ministry of the gospel.
But a partial failure of his health, and especially of his voice, required a
reconsideration of his purpose. Compelled to relinquish the profession
to which he was led by religious sympathies and aspirations, he chose the
mercantile profession as better for him than any other secular employ­
ment.
It was not difficult for him to find an eligible situation in the city where
he had passed they ears of his childhood, and where the stock of which he
came was favorably known. He was in his nineteenth year when he began
as a clerk in one of the large importing houses at Philadelphia, which had
not then ceased to be the foremost of our American cities. Nor was he
long in demonstrating that all his talents and attainments might be made
serviceable to him in his chosen employment. After remaining about five
years in connection with the house which he had entered as a clerk, and for
which he had made several voyages to" the W est Indies and to South
America, he removed to New York in 1809, just when all the commer­
cial interests of our country were imperilled, and were coming to the brink
of annihilation, by that series of measures which terminated in the war
with great Britain. How he forced through those years of disaster and
uncertainty I am not informed. Let it suffice to say that when peace had
been restored, and the business of the country was reviving, and its foreign
commerce was beginning again to traverse freely every ocean, he became
a partner in the house of G oodhue <&Co., now so widely known, and that,
through all the changes which time and death made in the partnership,
he remained a member of that firm more than forty years. All commer­
cial men know the character and standing of that house, and how much
of it was the character and standing of P elatiah P erit .
His place among the merchants of our great commercial city, was re­
cognized by his election, eleven years ago, to the Presidency ot the New
York Chamber of Commerce. The rules of that body provide that no




1864.]

Pelaiiah P erit, late o f N ew York.

249

president shall be re-elected for more than three years in succession without
a unanimous vote. Yet for ten successive years he held that place of honor,
being nine times re-elected by the unanimous vote of. his associates. I
need not say that while the place honored him, he made the plaee more
honorable for all his successors.
To a stranger who happens to look upon the great whirlpool of busi­
ness and excitement in New York, it seems as if there could be no such
thing in that infinite and ceaseless agitation, as the personal influence of
any individual man—unless he is a politician or the conductor of a news­
paper. Yet there are, in that vast chaos, some individual men whose
personal influence, without the aid of political partizanship and without
any blowing of newspaper trumpets, is a power. Mr. P erit was one of
those few men. Honored and trusted in the highest walks of commerce, he
was honored and trusted by the community at large— so far as there is
any such community there. Many of us remember the occasion a few
years ago— when the peace of that city was imperilled by the abuses of
faction, and there was a dead look in the Board of Police Commissioners,
and P elatiah P erit was chosen by common consent to fill the vacancy
in the Board, and so to arbitrate, as it were between the factions, and
what a relief it was to all honest men when his name was announced as
the solution of the difficulty. Yet he was not one of those poor souls who
have no opinion on disputed questions of great public interest, national
and local, or who, having an opinion, are afraid to say what they think. The
confidence of his fellow-citizens in him— so signally testified on that oc­
casion— was simply their confidence in an honest man of clear perceptions,
of safe judgment, and of a truly noble spirit. Many of us remember with
what dignity he accepted (at a serious personal sacrifice,) the trust to which
he was called in that emergency, and with what dignity he laid it down
when the crisis had passed.
The most conspicuous thing in the public character and services of Mr.
P erit was his constant and active interest in undertakings of Christian
philanthropy. He was not one of those passive philanthropists—some­
times men of great excellence and worthy to be greatly honored— who
give money when called to give, but who never give their time and their
personal activity to works of Christian love and zeal. From the outset of
the Foreign Missionary work, as conducted by the American Board of
Commissioners, he co-operated in 'th at work with an enlightened and un­
failing zeal. His connection as a merchant with the remotest lands of
heathenism stimulated and sustained his interest in the blessed work of
sending to those lands the renewing power of Christianity. The children
of his adoption, chosen from among the relatives of his own family, were
the orphan or motherless children of foreign missionaries. He was a fre­
quent and active attendant upon the great annual meetings of the Foreign
Missionary Board, for he seemed to regard his membership in that corpo­
ration as a trust not to be discharged without personal attention to its
duties, and he was always ready to devise and to execute liberal things
for the conversion of the world to Christ. B ut his interest in foreign
missions, like that of every Christian soul, instead of exhausting his bene­
ficence, was only the stimulus of his activity in doing good to all men as
lie had opportunity. The home missionary work, in all its departments,
had an equal place in his affections. He took an early and unwearied
interest in the efforts for the welfare of seamen, for to that once neglected




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Mercantile Biography:

[April,

class he felt himself, as a merchant, bound in a special relation. He was
for many years President of the Seamen’s Savings Bank in New York,
retaining that trust when he had laid down almost every other. He was
President of the American Seamen’s Friend Society, and was always ac­
tive in its concerns. He valued his place as President of the Chamber of
Commerce, chiefly because it made him a trustee, ex-officio, of that great
charity on Staten Island, the Sailor’s Snug Harbor. There was no sor­
row within his reach, nor any suffering or degradation, which di‘d not
share his active sympathy.
•
Many years ago, the air of the crowded city being injurious to his
health, he removed his residence to Bloomingdale, which was then a beau­
tiful suburb, but which the growth of the great city is now rapidly
absorbing. A t that distance from his place of business, he was compelled
to begin the day early—breakfasting often by candle-light— driving miles in
his own carriage before he could reach the region traversed by omnibuses
—returning after his long days work to enjoy his evening in his family.
But he did not live apart or for himself. His statelier dwelling, such as
became his position, was not surrounded by the mansionsof the rich such
as now crowd the Fifth avenue, but chiefly by dwellings of persons whose
place in society was in some sort inferior to his own. He was a good
neighbor there. His house was open to his neighbors for a weekly
prayer meeting, and it was his constant endeavor to make those meetings
for devotion the accession and the basis of a kindly social intercourse
with the families of the neighborhood. While retaining his connection
with the church of his own preference in the city, he sacrificed much of
what may be called the luxury of religious self-indulgence for the sake of
helping to sustain a church of a different name and order in that suburb.
He superintended with much personal labor, a large Sunday school which
was eminently useful. His house was near the large Orphan Asylum of
New York, and he never forgot that those orphans were his neighbors.
He v'atched over their welfare with incessant kindness. Every Sabbath
evening, and at other times, year after year, he took part in their moral
and religious instruction. Many a joyous holiday did those little ones
owe to his care and bounty.
To show what was the nature of his influence as a Christian merchant,
and how much of it was the effect of his rare judgment and skill in deal­
ing with men, I may refer to a change •which was effected by him, per­
haps thirty years ago, in the regulations of the packet-ships sailing from
the port of New York. Formerly the packets for Liverpool and other
trans-atlantic ports were advertised to sail regularly on certain days of
the month, and whenever the appointed days for sailing fell on Sunday,
the Christian Sabbath was disregarded. To the house of G oodhue & Co.
this was an inconvenience. It interfered with the Sabbath of the partners,
and with the Sabbath to which their clerks and other employees were
entitled. It interfered also with the religious feelings of all passengers
who honored the Christian Sabbath, and were unwilling to violate their
consciences by commencing a voyage on that day. At the same time it
interfered with the Sunday rest— religious or irreligious— of every mer­
chant, and of the clerks of every merchant, who had occasion to send by
every packet, the latest advices to his correspondents beyond the sea.
But the practice was a settled one,and how could it be changed? Those
were the days when tide and time waited for no man ; and was not the




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P elaliah P erit, late o f N ew York.

251

sailing ofa packet ship on her appointed day, even though that day happened
to fall on Sunday, a work of necessity and mercy ? How then should the
ship-owners and merchants, many of whom had no religious regard for
the sanctity of the Christian Sabbath, be brought to agree upon a change 1
Some men undertaking such a reform, would have begun with a public
agitation on purely moral and religious grounds, and with denunciation
of all persons implicated in upholding the existing arrangement, and the
result would have been a failure. The personal influence of Mr. P hrit
with men who, whatever may have been their own position in relation to
evangelical Christianity, could not but honor his Christian character, was
such that he foufkl no difficulty in effecting a new arrangement. He suc­
ceeded in convincing all parties that the chauge of “ packet day,” from a
certain day of the month to a certain day of the week was no infringement
of any man’s religious liberty, and was required not only in the interest
of religion and Christian morals, but also in the interest of merchants and
their clerks, and in the general interest of commerce.
The position of Mr. P erit in relation to public interests, political and
religious, was always highly conservative. Rash and one-sided schemes
of reformation were ever offensive to his judgment. Perhaps he was
more charmed with the idea of defendingand of perpetuating and perfect­
ing the good which has desoended to us from foregoing ages, than with
the'idea of finding out what there is in existing institutions that needs to
be reformed. Yet his sagacity, his good sense, his intelligent patriotism,
and his love of justice guarded him against the error of those self-styled
conservative men, who sacrifice the reality to the name, and become de­
structives for the sake of a false and foolish consistency. Not long before
the last Presidential election, there was a time when the immediate danger
to the country seemed to be that the votes in the Electoral Colleges might
be so divided among four candidates as to throw the election into the
House of Representatives, which would prolong the agitation from Novem­
ber to February, and would give to desperate men an opportunity far des­
perate measures. Mr. P erit had never been an active politician. But
deeply impressed with what seemed to be the most imminent peril of the
country, he did not hesitate to commit himself publicly and unequivocally
on the question of the hour, and as a conservative man to urge on con­
servative men the duty of terminating the agitation by giving their votes
and their influence for the only candidate in whose behalf there was a
possibility of obtaining a majority in the electoral colleges. So afterwards
when the long-meditated treason had become overt rebellion, and when
the question was whether the national government without any consider­
able military force, with its navy carefully disposed in the remotest seas,
with its treasury purposely empty, and its credit at a discount, could make
any resistance, he was among the leaders in that movement of merchants
and capitalists which brought forth millions of treasure to restore and
confirm the credit of the government. His conservative sympathies and
principles never led him into the error of assuming, or of conceding, that
parties and party-platforms are to be cared for first, and the country after­
wards ; that the Constitution should be modified or given up, at the de­
mand of rebellion, for the sake of an ignoble peace, which would be no
peace; that a local and barbarous institution, the creature of State laws,
ignored by the Constitution, and abhorred by the moral sense of the civi­
lized world, is to be scrupulously maintained by the military power of




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Mercantile Biography :

[April,

the nation through all the exigencies of civil war; or that the Government
of the United States is not legitimately invested with full belligerent
powers against those who, by their own act and profession, and by all the
definitions of the law of nations and of the laws of war, are enemies of the
United States. As a eonservative man, ready for every sacrifice to save
our common country, and to uphold those interests of humanity and of the
kingdom of God on the earth, which are identified with our national life
and welfare—he has given his hearty adherence to all the measures of
the Government against the common enemy. His natural cheerfulness,
exalted by a religious confidence in God, has made him hopeful for his
country in the darkest hours. Assured that the progress of events is
working out the purposes of God’s righteousness and love, he has never
been moved by any temptation “ to despair of the republic and his ex­
pectation of results that shall amply compensate the coming ages for the
sacrifices and the sorrows of our national agony, has never faltered.
About five years ago, in consideration of his advancing age, he deter­
mined, notwithstanding the unimpaired vigor of his bodily and mental
powers, to withdraw himself gradually from the engagements and respon­
sibilities with which he had. been so long familiar, and to find a quiet
retreat for the evening of his life. The associations of childhood and of
college days, the ties that bound him to some dear and honored friends,
his cultivated love of letters, and his hope of being able to combine the
privileges of congenial society with the privileges of retirement from the
great emporium, were among the attractions' which brought him to this
place. While withdrawing from an active participation in commercial
pursuits, he did not propose to pass the remainder of his life in idleness,
nor yet to neglect the duties which he owed to his profession. To a man
like him retirement is not indolence. H e proposed, indeed, to himself a
leisurely closing up of his affairs in this world, and a devout and tranquil
preparation for “ the coming night when no man can work,” or rather for
a blessed waking from the last sleep; but to him some manly occupation
— such as might task without overtasking his mind, and such as might
yield him the consciousness of a continued service to his profession and
his country— was a necessity. Having formed his plan, he immediately
entered upon “ the collection of materials for a History of the Commerce,
Finance, and progressive W ealth of the United States, since the close of
the Revolutionary W ar, with Sketches of the eminent Merchants who by
their enterprise and talents have contributed largely to the national pros­
perity.” In this undertaking he had, as I have already intimated, a
higher end than merely to amuse his old age with a semblance of em­
ployment. He believed, with modest self-appreciation, that his fifty
years of observation, and of active acquaintance with commerce, would
enable him to execute his proposed work in a way which would make it
useful to the country. The New York Chamber of Commerce by a vote
requested him to go forward with his undertaking. Thus encouraged, he
was giving the well-earned leisure of his old age to that work, an appro­
priate sequel to the “ Political Essays” of his grandfather. W ith P ela tiah W ebster ’s volume continually at hand, he had studied out all the
topics of his intended history, had written extensively on most of them,
and was beginning to reduce his collected materials to a form suitable fpr
publication, when he finally rested from his labors. It is hoped that
others will complete and publish what he projected and commenced.




r

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Pelatiah P eril, late o f N ew York.

253

His dying was in beautiful harmony with his living. Repeated and
painful attacks of a settled disease had made him quite aware that his
death could not be far off, and might be sudden. Yet his convalescence
from the last violent attack had been such that he was expecting to resume,
before long, his interrupted employment. W hen friends and physicians
found themselves compelled to give up that expectation, as one fatal
symptom after another began to appear, his calm but ever hopeful nature
was unconscious of the change that was in progress. But when, at last,
the voice that had long been dearest to him told him plainly that his
latest hour was just at hand, he received the announcement with perfect
composure, and with an unfaltering confidence in Christ. He was ready,
and all his thoughts were full of thankfulness. He had no arrangements
to make in regard to his worldly affairs. -But, with characteristic scrupu­
lousness, he recollected an oral promise which he had made of a thousand
dollars for an important public institution in New Haven. The amount
would have been paid a few days before, but because of his illness it had
not been called for. He remembered that his oral promise could not
authorize his executors to make the payment. He called for his check­
book, and when he had filled out the check,'and subscribed it, his work
was done. Calmly and cheerfully, he waited a few hours m ore; and
then he sank to rest, gently as a wearied child.

ACTION OF THE CHAMBER OF COMMERCE ON THE DEATH OF PELATIAH
PERIT.
A special meeting of the Chamber of Commerce of New York was held March 11,
1864, on the occasion of the death of its late President P elatiah P erit . The meet­
ing was called to order by Mr. A. A. Low, who made a very excellent and appro­
priate address which we are sorry we have not room to publish. The following reselutious presented by Mr. J ohn 0. G reen, were adopted by the Chamber :
Resolved, That in the death of the late member and President of this Board, the
Chamber desire to express their recognition of the agency of Divine Providence, and
briefly record their sense of the virtues and high qualities of their departed asso­
ciate.
Resolved, That the Chamber bow with reverence and cheerful submission to the
sovereign decree which, while removing from this sphere of service an honored and
esteemed colleague, ha3 permitted him a life of seventy-eight years of signal activity
and usefulness.
Resolved, That by early and wise training, by a liberal education, and by careful
subsequent cultivation of his mental and moral powers and practice in the affairs of
life, Mr. P erit was eminently fitted for the successful discharge of the duties which he
assumed. As a merchant and a member of society, and of this Chamber, he was ever
intelligent, courteous, and of spotless integrity. As a presiding officer, impartial,
prompt and skillful. He was especially distinguished for benevolence and a broad
catholic charity, which knew no distinction of race or condition.
Resolved, That the Chamber deem this a fitting occasion to express their belief,
that the crowning grace of Mr. P erit’s character was his deep, intelligent, consistent
and abiding religious faith. From this source he drew, as from a perennial fountain ,
motives of action, rules of life, incentives to diligence and perseverance in duty, and




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Finances o f the States.

[April,

inspirations of cheerfulness and hopefulness, which, behind the darkest cloud, ever
discerned a ray of light, which beckoned onward, and brought a life of high useful­
ness to a happy close.
Resolved, That the Chamber direct these resolutions to be entered on their minutes,
and a copy sent to the bereaved family of the deceased.
After the presentation of these resolutions, the Honorable G eorge Opdtkk briefly
addressed the Chamber, paying, in a very graceful manner, a high tribute to the excel­
lent judgment and pure unselfish character of Mr .P erit . He was followed by the Hon­
orable Charles K ing, President of Columbia College. The closing sentencss of his
remarks form a fitting end to this biography.
“ Mr. P erit was never a partizan j he, on the other hand, never failed in the
discharge of his political obligations. He always counted, as a substantive quantity >
whenever and wherever h e interposed, and was firm and fearless in carrying out his
views.

Of the graces of his Christian character, the resolutions and the feeling and discrim­
inating remarks of the gentleman who introduced them, make fitting commemora­
tion.
Of the loyalty and integrity of his character a3 a merchant—of the beautiful tenor
of his whole life—we have all been witnesses, and all feel that we shall not soon look
upon his like again.
In his personal intercourse he was frank, lovely, courteous, considerate, wise.
‘None knew him but to love him,
None named him but to praise.’ ”

FINANCES

OF

THE

STATES.

W e have made up from official data the following statements, giving
the receipts and disbursements for the year 1863, and the debt at the end
of that year, of each State, excepting, of course, those now in rebellion :—
PEN NSY LV A N IA .

The revenue and expenditure of the State of Pennsylvania, for the year
1863, were as follows :—
Revenue.

Expenses.

Ordinary R eceipts.. $3,959,438 61 Expenses................. $3,139,121 08
208,074 44
Miscellaneous.........
330,013 04 Military...................
O ther........................
967,768 53
T o ta l............... $4,289,451 65
On hand Nov., 1862 2,1'72,8.44 10

Nov., 1863...........

$4,314,964 05
2,147,331 70

The excess of expenditure for the year was made up from the balance
on hand.
The State debt was as follows:
PENNSYLVANIA PUBLIC DEBT.

The indebtedness o f the Commonwealth o f Pennsylvania on the first
day o f December, 1863.
Funded debt, viz.:
6 per cent loans, ordinary
$400,630 00




1864.]

255

Finances o f the States.

5
4£

do
do

do
do

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

35,709,986 45
268,200 00
$36,378,816 45

Unfunded debt, viz.:
Relief notes in circulation.........
Interest certificates outstanding
Do
unclaimed.
Domestic creditors’ certificates.

97,251
15,356
4,448
724

00
63
38
32
117,780 33

Military loan, per act of May 15, 1861
Public debt, December 1, 1868
Public debt December 1, 1862 ...........
Deduct amount redeemed at tbe State
Treasury during the fiscal year end­
ing with November 30, 1863, viz.:
5 per cent s to c k s......................
4-J- do do
......................
Relief n o te s...............................
Domestic creditors’ certificates...........
Publie debt, December 1, 1863

$36,496,596 78
3,000,000 00
$39,496,596 78
■

■

$40,448,213 82

$888,499 78 63,000 00
109 00
8 26
-----------------

951,617 04

$39,496,596 78

The redemption of this debt, $951,617 04, by the commissioner of the
military fund was in currency, and gave rise to great complaints, and that
justly, particularly on the part of the foreign holders who had loaned
specie and got back not more than two-thirds of what was their due.
The commissioner had, however, no option under the law. The funds
provided were in paper, and they had no authority to pay specie, and the
loans were discharged in legal tender.
The result for the state is a great diminution in debt. The interest on
the debt of Pennsylvania is paid in specie. But the funds are derived
from the banks, which are required by law to pay into the Treasury their
rateable proportion of such premium on gold as is required to meet the
interest. By the act of January 30, 1863, the banks were required to
exchange a sufficient amount of coin for currency, receiving in return
Treasury certificates pledging the State faith to return coin before March,
1864, with 2£ per cent interest. $1,968,904 coin was so obtained, and
there is $41,040 interest due the banks. The State had to pay
$1,013,986 premium on the coin to return it. The banks demurred at
this system of calling upon them to furnish coin, particularly at a time
when they were called 'upon to struggle against a new system of banking
which was not subject to State taxes. In the years 1837-39, the State
of Pennsylvania was forced to suspend her interest or pay in paper, thus
drawing loud and deep groans from the Dean of St. Paul’s. W hen the
difficulty passed, the State, by the act of June 12, 1840, appropriated a
sufficient sum to reimburse her loanholders for the difference in value
between specie and the currency in which they had been previously paid,




256

Finances o f the States.

and then solemnly declared, “ that hereafter the interest falling due on
Pennsylvania stocks shall always be paid in specie or its equivalent.”
This is the law to-day, and for its observance, and the maintenance of the
present good name of the Commonwealth, no effort or sacrifice ought to
be spared. The taxable property of Pennsylvania is as follows r
Eeal and personal estate........................
$595,591,994.
Tax assessm ent.......................... $1,545,643 94
%mill tax .....................................
294,859 72
------------------- $1,840,503 66
P o p u latio n ............. ..................................................... 2,921,046
“
taxable........................................................
642,468
NEW H A M PSH IR E.

The general receipts and expenditure of the State of New Hampshire,
for 1863, were as follows :
Expenses.

Revenue.

Taxes.........................' $137,085 61 O rd in ary ................... $210,539 32
Loans.......................... 239,300 00 Aid volunt’r families,&c., 183,810 66
$394,349 88
Total................. : . . $376,385 61
The following is a statement of the military operations of New Hampshire :
Regiments.
i ............................
2 ............................
3 ............................
4 ............................
5 ............................
6 ............................
7 ............................
8 ............................
9 ............................
10 ............................
11 ............................
12 ............................
13 ............................
14 ............................
15 ............................
16 ............................
17 ............................

Quartermaster.
. $4 86
. 51 75
8 00
•
...,
. 17 62
. 19 09
.
.
•
•
•
•
.

75 23
27 25
••. •
1 00
...,
••••
••. •
57 25
57 27

B a tte ry ...................
Sharpshooters......... •
••••
Cavalry .................
5 25
F o rts........................ . 270 94
W ar claims.............

Recruiting.
152
179
62
176
208
64
28
1,660
1,794
1,852
1,932
1,932
1,890

00
00
00
00 .
60
00
00
00
00
00
00
00
00

12 00
28 00
14 00

Bounty.
$5,160
6,660
2,470
6,410
360
3,960
780
47,250
41,400
48,050
48,600
46,400
41,650

00
00
00
00
00
00
00
00
00
00
00
00
00

360 00
1,020 00
1,980 00

Total.
$4 86
5,756 81
6,892 02
2,583 38
6,621 12
832 72
4,024 00
1,011 01
78,138 08
51,637 10
56,352 91
59,041 44
61,968 60
57,356 17
6,309 91
7^660 70
6,525 18
385 SO
1,048 00
2,369 17
1,192 80
8,683 74

Total military expenses.........
Direct tax, & c.. . .

$426,395 18
271,117 67

Total expenditure
Cash on hand June 1, 1 8 6 3 ..

$697,512 85
31,461 51

Grand to tal.........

$728,974 36




f
I

1864.

Finances o f the States.

R eceipts:
Sale State bonds........................
U. S, direct ta x ..........................
Iu Treasury, June 1, 1862__ _

257

$482,308 50
218,406 67
28,259 19
----------------

728,974 36

The total debt of New Hampshire, at the end of the fiscal year of
1862, was $735,100.
During 1863 additional loans have been negotiated to the amount of
$239,300 for the temporary use of the State, and $482,308 50 for mili­
tary expenses.
N EW YORK.

The receipts and disbursements of the New York general fund, for the
year 1863, were as follows:
Receipts.

Payments.

Loans State defence. $2,000,000 00
Auction and salt duty 187,951 06
State tax................... 4,700,952 77
Canal revenue.........
200,000 00
22,875 00
M iscellaneous.........
Prisons’ earnings.. .
267,125 30
Sale of arms to U.S.
230,599 99
Native guard fines..
70,101 37
Non-resident tax es..
57,277 65
Banks........................
33,020 33
Other item s.............
50,105 59

Bounties............... ..
W ar expenses.. . .
D ebt..................... . .
Canal loan............
Sinking fund .. .. . .
Other Expenses . . . .

T o ta l................... $7,820,009 06
On hand 1 8 6 2 . . . . .
821,612 11

$4,650,277
640,114
1,605,138
355,040
1,065,148
1,589,880

54
58
33
28
17
57

T o ta l................... $9,804,599 47
D eficit................. 1,192,787 77

The debt of the State is as follows :
Canal debt.......................................................................
General fund debt..........................................................
The State valuations are as follows :
Acres of l a n d ....................
“
“ assessed . . .
Real estate v a lu e ....................................
Personal
“ ....................................
Total valuations
Equalised “
Town taxes...............
County ta x e s ...........
School
“ ...........
State
“ ...........

$23,268,310 25
6,505,654 37

28,297,142
27,693,721
$1,119,708,723
340,838,266
$1,462,778,067
1,454,454,817
$3,421,806
12,352,720
1,090,841
6,181,432

Total taxes (15 mills per one dollar)

01
57
11
97
$23,046,800 60

M ICHIG A N.

The receipts and expenses of the State of Michigan, for the year 1868,
were as follows:




Finances o f the States.

258
Receipts.

Ordinary...................
62,000.000 loan . . . .
W ar bonds...............

[April,
Expenses.

$1,401,366 Ordinary................. $1,047,245 52
2,009,210 Five million lo an ... 1,901,185 00
71,100 Other b onds...........
179,125 00

$3,127,555 52
Total___ '.............
$3,481,676
The amount expended by the State for war purposes was $232,903 94.
The State debt is as follows:
State indebtedness.
The funded and fundable debt is as follows:
Renewal loan bonds, due January, 1878,..........................
Two million loan bonds, due January, 1868,...................
“
“
“
“
1873,....................
“
“
“
“
1878....................
“
“
“
“
1883,...................
W ar loan bonds, payable January, 1864,..........................
“
“
due January, 1 8 8 6 ,..... ...................

$216,000
250,000
500,000
500,000
750,000
16,400
550,900

00
00
00
00
00
00
00

Total............................................ ' ........................

$2,783,300 00

Canal bonds guaranteed by State.....................................
Matured adjusted bonds, interest stopped, payable on
d e m a n d ..............
Matured full paid 5,000,000 loan bonds, interest stopped,
payable on demand,..........................................................
Temporary loan bonds, interest stopped, payable on de­
mand, ...............................................................................
W ar loan bonds, interest stopped, payable on demand,.
Outstanding part paid (unrecognized) bonds, $140,000
adjustable a t .....................................................................

100,000 00

Total......................................................

10,000 00
12,000 00
5,000 00
2,000 00
80,999 80
$2,993,299 80

IOW A.

The receipts and expenditure for the State of Iowa, for the years 1862
and 1863, were :
Receipts,.......................... .............................
$866,816 62
Expenses,......................................................
854,101 65
Excess receipts,.......................................

$12,714 97

The expenses of the State for war and defence were $710,986 22 The
State debt is as follows :
The State has borrowed of the Permanent School Fund the following
sums, to w it:
On bonds payable May 1, 1854, (Chap. 58, Acts 1849)..
$16,442 05
“
“
Sept. 15, ’59, (Chap. 70, Acts 1849)..
6,000 00
“
“
Jan. 1, 1856, (Chap. 51, Acts 1851). .
2,353 70
“
“
July 15, 1861, (Res. 9, Ex. Sess. ’5 6 )..
40,000 00
57,500 00
And amount borrowed Jan. 1, ’57, (Chap. 3, Acts ’56-7).
Total amount of School Fund borrowed,...................




$122,295 75

1804.]

Finances of the States.

259

Iowa seven per cent bonds payable in New York, Jan. 1,
1868, issued under Chap, 7, Acts 1858,..........................
M aking.............................................................................
To which add amount of bonds sold under Chap. 16, Acts
Extra Session 1861, for W ar and Defence Fund,...........

200,000 00

1322,295 75
300,000 00

Making total bonded debt, ........................................... $622,295 75
The taxable property of the State is as follows :
Acres la n d ,......................................................
28,336,345
Value of land,.....................................................
$111,653,109
Town p ro p e rty ..........................................
22,992,759
Personal “
32,463,106
T o ta l.........................................................................
2 mill tax ................................................................

$167,108,974
334,218

W ISCONSIN.

The finances of the State of Wisconsin embraces a great number of funds,
fifteen in all, under which as many branches of the national service are
conducted. The aggregate receipts of the funds was $2,636,888 90, and
the expenses $2,581,180 07. Of these the general fund and the war fund
possess the most interest. The former was as follows for the y e a r:
Receipts.

T a x e s................... ..
L o a n ......................
Miscellaneous . . . .

Payments.

$786,128 37 Interest...................
50,000 00 Paid war fund . . . .
34,247 62 State expenses . . . .

$104,512,97
272,156,10
434,274,42

Total...................
$860,375 99
Total...................
$810,349 55
On hand.................
166,523 04 On h a n d .................
205,958 61
By the law of 1863, the Governor was authorized to contract a loan for
war purposes of not more than $350,000. Of this amount $220,000 was
invested in the School Fund, which had received the money from lands.
There remains $130,000 available for war purposes. The war fund
showed receipts from all sources including State war tax, $272,156,
$807,929 of which $604,999 was applied to Volunteer aid. The debt of
the State is now $1,720,000, after deducting $50,000 redeemed in the past
year. This debt is pavable a portion every year up to 1894. Of the stock
$1 ,340,900 is deposited for security of the Wisconsin bank circulation.
CONNECTICUT.

The taxable property of the State of Connecticut is as follows:
Counties.

Hartford . . : ...........
New H aven.............
New London...........
Fairfield....................
Windham ...............
Litchfield.................
M iddlesex...............
T o lla n d ....................




Grand List.

54,890,074
32,430,455
14,225,520
24,804,060
14,762,995
$247,065,810

Tax at 2 mills.

M ilitary Commu­
tation Tax a t $1.

$109,761 04
103,241 73
64,860 91
84,805 68
28,451 04
48,135 65
29,525 99
17,338 70

$4,142 00
3,098.75
2,581 00
3,246 00
1,408 00
2,599 00
1,488 00
1,375 00

$480,120 74

$19,937 75

I

THE

MERCHANTS’ MAGAZINE
AND

COMMERCIAL

C O N T E N T S OF
VOLUM E L.

REVIEW.

No. 'III.,

VOL.

M A R C H , 1 8 64.

L.
N U M B ER III.

A rt .
paoji
I. STEAM ON T H E P A C IFIC OCEAN. T rade betw een China akd J apan . B y
H. B. A .............................
165
I I . TH E A GE OF GREENBACKS—D EB T AND CURRENCY. Ai e w i P rosperous?. 176
I I I . OCEAN STEAM NA V IG A TIO N . G reat B ritain ys. the U nited S tates ................. 193
IV . COMMERCIAL LAW .
N o. 11.P A R T N E R S H IP ................................................................. 205
V. SILV ER CURRENCY IN IN D IA . B y T. M. J ..................................................................... 212
Y I. COMMERCIAL CHRO N ICLE A N D R E V IE W ..................................................................... 215

J O U R N A L OF B A N K I N G , C U R R E N C Y , A ND F I N A N C E .
National Banks vs. State B anks................................................................................................................
City Bank R etu rn s..............................
New Y ork Banks..........................................................................................................................................
Boston Banks..................................................................................................................................................
Philadelphia Banks......................................................................................................................................
Returns of the Banks of New Y ork State................................................................................................
Returns of the Savings Banks of New York State................................................................................
European Finances......................................................................................................................................

219
221
222
222
222
222
228
224

S T A T I S T I C S OF T R A D E AND C O M M E R C E .
Statistics of the W hale Fishery for 1863.................................................................................................
Coal Trade for 1863........................
Commerce of the Lakes............................
Commerce of the U nited States....... .....................
The Clothing T rad e...................................................................................................................................

226
230
231
281
233

S T A T I S T I C S OF P O P U L A T I O N .
Facts from the Census of 1860..................................................................................... ......................... .. 234

COMMERCIAL

REGULATIONS.

Decisions of the Treasury D epartm ent................................................................................................... 237
Additional Regulations concerning Commercial Intercourse w ith, and iD, States declared in
In su rre c tio n .....................................................
241




1804.]

The Montana o f the Andes.

281

THE MONTANA OF TIIE ANDES.
BY DR, J, HUNTINGTON LYMAN, NORTHAMPTON, MASS., LATE SECRETARY OF
THE U. S. COMMISSION TO PERU.
O n the eastern slope o f the Andes there is a region of which little has
yet been written. Few travelers have visited it for the purpose of discov­
ery and mating known its wealth and commercial advantages.
The Government of Peru, since it has assumed a paternal and national
character, as compared with its former selfish individualism, has within a
short period instituted various exploring expeditions for ascertaining the
nature of the climate, resources and best mode of development of the
region referred to. It has sent out scientific and practical men in different
directions, who are still engaged in the work. It also has in its employ
intelligent engineers from the United States and Europe surveying routes
for a railway across the Andes.
The men now at the head of public affairs have the wisdom to under­
stand that the guano deposits from which the revenue of Peru is chiefly
derived cannot last twenty-five years longer at the current rate of exporta­
tion, and are consequently aware of the necessity of providing for some
more permanent source of income for the support of the national govern­
ment. They are intelligent, patriotic men, and are sincerely desirous of
benefiting their country. The reports they have received from the vari­
ous exploring expeditions sent out by them, and from the prefects and
other officers of the Government in the departments and villages of the in­
terior, have conclusively shown that the future wealth and revenue of Peru
will be found mostly there. They are at work in a practical way, deve­
loping that country by offering inducements to emigrants, granting to them
special privileges, by opening wagon roads, as well as in the survey of
routes preparatory to the building of railways, and also by persevering
efforts to procure the opening of the Amazon by Brazil to the commerce
of the world.
In this paper we prbpose briefly to notice the present resources of Peru,
as developed on the coast, and also the character of that extensive region
on the eastern slope of the Andes known as the Montana ;* in order to
direct public attention, not only to the great excess of its territory on that
side of the mountains, but also to the unexampled profusion of the mineral
and vegetable wealth of that section, its excellent climate, its perennial
summer, and its navigable rivers opening the country in every direction,
and affording easy transportation to the United States by the Amazon and
the Atlantic.
The Republic of Peru is divided by the Cordilleras of the Andes into
two portions. The western section is a narrow strip of land about twelve
hundred miles long, and Irom ten to forty miles wide, from the sea to the
base of the Andes, which rise abruptly into the region of perpetual snow.
On this portion there is but little sign of vegetation, except where the
land is irrigated by the few small streams formed from the melting snows
in the high valleys of the mountains. In some few localities'1the soil re­

* Pronounced Montanyah.
VOL. L.---- NO. IV .




17

262

The Montana o f the Andes.

[April,

quires only moisture to yield large returns. By means of canals the Incas
secured abundant harvests; but without irrigation there is scarcely any evi­
dence of vegetable life.
There are, however, extensive and valuable saline deposits, principally
nitrate and borate of soda, and also the muriate. In fact the surface soil
on many portions of the coast is so impregnated with nitrous and other
Balts, as to forbid all attempts at cultivation.
Some of the saline deposits are so peculiar in their character as to offer
an interesting subject for scientific investigation.
Common table salt is very abundant. It is somewhat impure, but is
freely used by the natives for culinary purposes. In one place this forma­
tion is very curious. It is on a shallpw lake, of about one foot in depth,
of intensely salt water, the surface of which is covered with an incrusta­
tion some ten inches thick, appearing like a pond frozen over. The salt
is sawed out in blocks nearly a foot square, and removed, leaving the open
wrater upon which another similar incrustation soon forms. These blocks
are found for sale in the grocery shops of Lima and other towns.
But of all the saline formations of Peru, none equal in extent or prob­
able value those of the province of Tarapaca, consisting of the nitrate and
borate of soda. Not even the guano deposits can compare in value with
these la st; for the guano will soon be exhausted, but these promise a per­
petual revenue to the government, limited only because the demand will
not probably equal the supply.
These deposits of soda, principally nitrate, extend over an area of one
hundred and fifty square miles, in the desert of Tarapaca, and are found
several feet in thickness—so thick and solid that they are sometimes broken
up by blasting.
Both the nitrate and borate of soda are becoming valuable articles of
commerce, but in view of their abundance, it is fortunate for the best in­
terests of Peru that they are not so immediately valuable in agriculture as
the guano. If they were as available as the last, they might prove to be
anything but a blessing to the nation, for such immense wealth ready for
use, with scarcely any labor necessary for its production, as is the case
with the guano, would, as all experience straws, tend to a speedy enerva­
tion of both government and people. The guano, .however, is fast disap­
pearing, and does not enter into any calculation of future permanent rev­
enue.
The principal source of durable wealth of a nation must be found in ag­
riculture. In Peru this cannot be carried on profitably, in its western di­
vision for reasons above given. As the mineral resources of Peru are
found in the Andes and Eastern divisions, we will not speak of them
here.
W e have referred to the speedy removal of the guano deposits. There
are only about ten or twelve millions of tons of pure guano remaining on
the Peruvian islands; which is being exported now at the rate of nearly
four hundred thousand tons per annum, with a rapidly increasing demand;
and as, thus far,- none equally good has been found elsewhere to any
amount, it is evident that it will probably soon disappear.
The birds which are mainly the producers of this article, are no longer
left undisturbed by man, and there can be no hope of any additional ac­
cumulations, in quantity sufficiently abundant to stimulate the enterprise
of men in search of it.




1864.]

The Montana o f the Andes.

263

The principal deposits are on the Chinchas and Lobos islands. There
is one small island called “ Maoabi” in latitude 7° 50' south, which pre­
sents the appearance of a haycock. It is a table of granite, about one
thousand feet in diameter, and elevated fifty feet above the sea. Upon
this table rests a conical mound of pure, hard, almost crystalline guano,
with its apex one hundred and fifty feet above the rock. An American
Engineer, in the service of the Peruvian Government, lately sunk a shaft
into the top of this mound to measure the deposit. A t the depth of one
hundred feet the auger was very much clogged by the hair o f seals.
After boring one hundred and thirty feet the instrument broke. Marine
animals, like the seals, instinctively climb upon the rocks to die, and all
these guano islands show that the remains of such animals enter largely
into the composition of the deposit. On this island of Macabi it is esti­
mated that there are at least seven hundred and fifty thousand tons of pure
guano.
The preservation of the saline and guano deposits of the coast land and
islands of Peru through many ages to the present time is owing to the
fact that it never rains there. No drenching, wearing rain ever falls,
nothing at the most beyond occasional and very slight showers; nor are
the dews sufficiently penetrating to encourage vegetable growth.
The oldest buildings in Lima—the Cathedral, for instance, which is nearly
three hundred years old—constructed as they are of sun-burnt bricks—
common dry mud—show conclusively that there is not sufficient moisture
in the atmosphere to wash or wear away the material of which the build­
ings are made.
It is very singular that it never rains on the coast of Peru, when the
coast of Chili having in part the same lineal direction, and sea winds from
nearly the same quarter, is comparatively fertile, as is also the coast of
Ecuador on the north. In each of these three countries the Andes are
about equally distant from the sea.
Why should the coast of Peru, having the same physical features with
the other two Republics, and a shore line generally more favorable for re­
ceiving the moist southerly winds of the Pacific, be a barren, rainless land,
while they are well watered and fertile ?
The prevailing winds from the Pacific blow along the coast of South
America in a northerly direction, with sufficient easterly trend to bring
over the land the moisture evaporated from the sea, which is precipitated
in heavy fertilizing showers upon the coast land of Chili and Ecuador, but
refuses any of its blessings to the intermediate coast land of Peru.
An intelligent Peruvian officer, Senor E a im o n d y , now engaged in explor­
ing the Montana, alluding to the above singular fact in one of his reports
to the Government, says: “ No one has referred to the influence which the
nature of the soil on the coast of Peru may have in causing the absence
of rain in that region. The coast of Peru appears to have been recently
lifted from the ocean, covered with a thick coat of sand in its whole length
and breadth, extending even far up on the sides of the hills, which skirt the
western base of the Andes, where are found shells like those now gathered
on the neighboring shore. This sandy coast, being under the direct solar
rays, attracts a large amount of caloric—so much so as to cause an up­
ward current of hot air, which, coming in contact with the moist winds
blowing over the land from the sea, prevents their condensation, and dis­
perses them into the more elevated regions of the atmosphere, where the




264

The Montana o f the Andes.

[April,

moisture is precipitated in snow and hail upon the lofty summits of the
Cordilleras.”
H umboldt alludes to this upward current, but neither he nor R aimondy
accounts for the bulk of the moisture brought in from the sea; a portion
of which does fall in snow ; but if all were deposited upon the sides of the
Cordilleras, the immense volume would give origin to larger and more
numerous rivers than actually exist.
Assuming the above explanation to be correct, we may perhaps account
for the disappearance of the chief portion of the moisture, on the supposi­
tion that, as the clouds reach the crests of the Cordilleras, they come in
contact with upper currents which have a westerly direction, and are thus
carried back upon the Pacific; for the south-east and north-east trade winds
of the Atlantic, which so bountifully supply the greater part of South
America east of the Andes, impinge with considerable force upon the
eastern slope of the Cordilleras, and are in part deflected upwards, and,
thus clearing the summits of the mountains, proceed westward to the
Pacific, carrying the ascending coast winds of Peru with them.
Whatever the true theory may be, the fact that the sea-coast of Peru
is a barren, rainless land will probably always hold good; while, in strik­
ing contrast, the coast north and south of it is clothed with a luxuriant
vegetation. As Peru is deprived of rain on its western division, Provi­
dence h'as endowed that portion of the country with the valuable saline
deposits, rare in kind and abundant in quantity, to which we have already
referred.
Let us now look at the eastern division—“ The Montana” so-called—
where everything is the reverse of what we have thus far seen. This
division has the form of a triangle, with its base resting for six hundred
miles, upon the Amazon river, and its apex extending to Bolivia, six hun­
dred miles south. Its eastern boundary is the river Yavari, a fine, large,
navigable stream, flowing north, and emptying into the Amazon near the
town of Tabatinga, on the north-west corner of Brazil, where the Amazon
is nearly two miles wide, and a hundred feet deep. The Cordilleras of the
Andes constitute the western boundary.
This section of the country is opened through its centre from South to
North by the Ucayali river, which is one of the principal sources of the
Amazon, uniting with it twenty-three hundred miles from the Atlantic,
and navigable for vessels of two hundred tons, for more than three hun­
dred miles from its mouth, near the flourishing town of Nauta, which con­
tains upwards of three thousand inhabitants. It is a wide, deep, gently
flowing stream, with branches on each side practicable for smaller vessels,
thus rendering every part of the country accessible to commercial enter­
prise. For steamers of light draft,it is reported to be navigable to within
a short distance from Cuzco, or a thousand miles from its mouth. By
one of its branches access can be had, it is said, to a point not far from
the large town of Ayacucho. Two hundred miles up the river is the town
of Sarayacu, in which is a population of a thousand souls. Both this town
and Nauta—where the Amazon is three miles wide—are promising centres
for future commerce.
The Pachitea, a branch of the Ucayali, was explored last summer—the
dry season—and found to be navigable for vessels drawing four feet of
water to Mairo, which is near the fine city of Huanuco, in the very heart
of the land, in the same valley with the ancient mining town of Pasco, and




1864.]

The Montana o f the Andes.

265

not far from one of the proposed termini of the railway now being surveyed
from Lima. All those points can be easily connected by railroad with that
terminus, as the grade will be very light.
This eastern division of Peru contains more than three quarters of the
area of the entire republic. There is but little, if any, unavailable land,
except high up on the mountains, which on the other hand are so rich in
mineral wealth as abundantly to compensate for their lack of fertility. While
the whole of this immense country is replete with agricultural and mineral
resources, the preference is perhaps to be given to that portion lying between
the Ucayali on the east and the Cordilleras on the west, extending from the
Amazon to Bolivia. This strip of territory is especially known as the
Montana of Peru. The entire Montana of the Andes, including that of
Bolivia, is about a thousand miles in length, with a population of more than
a million of inhabitants. This word “ Montana” is familiar to Spanish
Americans, and associated in their minds with the idea of all that is desir­
able in the vegetable kingdom. It does not signify mountainous. It is
derived from the Spanish word monte, meaning bush, a clump of trees or
bushes; and as applied throughout the western coast of South America, it
denotes a country of forests and bushes, of rolling lands and plains, including
particularly the fertile slopes of the Andean ranges. The Cordilleras, from
Ecuador in the North to the Southern border of Bolivia, decline gently and
irregularly to the eastward. The width of this slope, from the upper part
of the range where fertility begins, to its easterly edge where the rolling
lands disappear in the vast plains beyond the Ucayali, is about a hundred
miles.
The Bolivian Montana is, in all probability, easily accessible by the
Purus river, which, so far as explored, is found to be broad, deep, and free
from rapids. There is little reason to doubt that such are its characteris­
tics throughout its whole length, as it traverses the great plains west of the
Brazilian mountains. If the navigability of this river is established, it will
open the rich Montana of Northern Bolivia, as well as the opulent department
of Cuzco, in Peru, to steamers from the Atlantic. By the Purus the route
to the ocean would be almost in a straight line from south-eastern Peru,
a much shorter distance than by the Ucayali. This splendid Montana of
Bolinia is, without doubt, also accessible by large steamboats through the
Madeira river, which unites with the Amazon one thousand miles from
Para, and not far below the thriving town of Barra, which contains about
five thousand souls. The Madeia is a noble stream, entirely unobstructed
for five hundred miles. In latitute ten degrees south, spurs from the Bra­
zilian mountains interrupt its flow. Were a canal made around the falls,
there would be opened an additional five hundred miles of good naviga­
tion ; in fact, vessels from the Atlantic could penetrate to the very heart of
Bolivia.
As the Montana of the Andes, both in Peru and Bolivia, is undoubtedly
penetrated by rivers that are now navigable, or, if obstructed, can be opened
without serious difficulty ; and as both possess the same physical features,
material wealth, pleasant, healthy climate, rich soil and perennial luxuriance;
it may be well to speak of their commercial prospects and resources, as com­
mon to both.
The traveler already quoted, Setior R aimondy, who has made extensive
explorations in the Montana under the authority of the Peruvian Government,
speaking of the country, says : “ No words can give an idea of the immense




266

The Montana o f the Andes.

[April,

variety of natural productions, and of the incessant activity of nature in un­
folding her creations. In truth, throughout this region are united all the
conditions most favorable for vegetable life ; such as an atmosphere constant­
ly charged with moisture, a temperature sufficiently elevated, and a rich
virgin soil. In every direction there is presented to the eye an exuberance
of life so great, that every material object seems to be animated.”
Nearly all the tropical productions of the globe are found there. Chief
among them are cotton, coffee, sugar-cane, rice, tobacco, cacao, indigo; with
corn, barley and wheat on the uplands. The forests abound in the various
dye-woods of commerce, in ebony and many other kinds of wood valuable
for cabinet-work, the veneers from which present very beautiful combinations
and contrasts of colors. Trees and shrubs, possessing medicinal and other
desirable virtues, some of which are well known and appreciated by the civ­
ilized world,such as india-rubber, Peruvian bark, various balsams, as copaiva
and to lu ; gum copal, sarsaparilla, vanilla, and many more are there thrown
together in the wildest profusion. Great quantities of honey and of clear
white wax are found, and have already become important articles of traffic
with Brazil. It seems as if nature had determined that all her agents should
contribute to the varied wants of man, for among the fish of the rivers there
is one kind called the Paichi, often ten feet in length, and weighing three
hundred pounds, which is so important an article of trade with Brazil, that,
in the proper season for taking it, the entire population inhabiting the banks
of the Ucayali and the Huallaga enter upon the work of catching and salt­
ing it for the Brazilian market. Throughout the Cordilleras and their
spurs are rich mines of gold, silver, iron, copper, tin, lead ; also extensive
fields of bituminous and anthracite coal, gypsum ; fire-clay also for fur­
naces.
Cotton grows wild, and js both white and yellow, the latter variety resem
bling the Chinese cotton known as “ Nankeen.” -The staple is finer than'
our ordinary production, and second only to the “ Sea-Island.” When cul­
tivated the yield is very bountiful. There is also a species know as “ hillcotton-,” the product of a large tree, that bears it in great abundance. This
is likewise of two colors, one yellowish, the other as white as snow. It has
the softness and gloss of silk. Another production, called by the natives
“ vegetable wool,” is yielded in large quantities by a variety of cactus. . It
is somewhat like the yellow cotton, but slightly crispy. Several heavy bales
of this article were recently noticed by the writer on board of the steamer
from Lima to Panama, on their way to England, to be experimented on by
the cloth manufacturers.
The coffee-tree is indigenous in the Montana. When cultivated, it bears
in three years, and each plant is calculated to produce a crop of at least a
bushel of berries. Its quality and aroma are equal to those of the finest
Mocha. Those who have drank coffee in Lima will testify to its delicious
flavor.
The sugar-cane is evidently at home in that region. In our Southern
States it must be replanted every two or,three years; but there, when the
cane is once set, it lasts for a generation. Within about six months from
the planting, the canes are ready to be cut. They are large and more
juicy than ours, and each plant yields from sixteen to twenty fully matured 1
stalks.
Corn and rice mature in four months, and on the ingathering of th'e crop
the grouud is at once ready for another planting. “ In fact the fertility of




1864.]

The Montana o f the Andes.

267

the soil is so great,” says a Peruvian officer long resident in Huanuco, “ that
it is only necessary to burn off the weeds and brush in any place, and then
to scratch in the seed, to receive in due time a most abundant harvest.”
The quality of tobacco is said to be equal to the best of Cuba, and is held
in high estimation on the coast; but, like all other productions of the Mon­
tana, the article is expensive there, owing to the difficulty of the transporta­
tion across the Cordilleras, which railways will remove.
For the common people of tropical America, farina and bananas are the
main reliance for food, and are as important to them as rice to the natives
of India. The banana is every where abundant, and of many delicious varie­
ties. “ Clusters of monstrous size” are sometimes gathered, in one instance
“ weighing a hundred and fifty-nine pounds''1! The “ farinha ” of Brazil is
prepared from the root of the Jatropha maniliot; while the farina of the
Montana is manufactured from another species of the manihot, known in
Spanish America as the yuca, which when boiled is very pleasant and nutri­
tious. It is to the natives as valuable as the potato is to the Irishman, and
far more sure of growth and abundant yield. They esteem this root very
highly, also, for the fermented beverage they make from it which they call
masato.
The inhabitants of the Montana are principally descendants of the tribes
subject to the Incas. They are somewhat civilized, and nominally Chris­
tian, and are to be found chiefly in the smaller villages. They are an in­
dolent people, of few and simple wants. The inhabitants of the cities
and large towns are generally the progeny of Spanish and Indian parents.
A few whites are scattered among them, who have no Indian blood.
These latter mixed races are at present the only enterprising portion of
the population. They need the: opening of the country to stimulate them
to useful industry. On the eastern side of Ucayali are some small tribes
of wild Indians, not exceeding five thousand in' number, who must disap­
pear before the advance of civilization. It is said that there are many
negroes among them, fugitives probably from Brazil.
The climate of this region is generally pleasant and healthy. Although
it lies within the tropics, and is covered with luxuriant vegetation, and
has a moist atmosphere—conditions usually regarded inconsistent with
salubrity—yet it is not considered unhealthy, these facts notwithstanding.
In this respect it differs from many localities along the banks of the large
rivers in the interior of South America, as, for example, the Orinoco and
the Rio Negro. In the lowland of the extensive Pampas, the great rivers
overflow their banks in the rainy season, and the stagnant water left by
the freshets is a fruitful source of febrile disorders among the residents ;
although travelers passing through are not ordinarily affected. In the
Montana the surface is more rolling than level, the drainage is good, the
rivers have a current of about three miles to the hour, and except near
their junction with the Amazon, there is but little overflow. Another
reason for the general salubity of this region is to be found in the strong
winds which ordinarily prevail in the middle of the day. The uniform
testimony of those long resident there is that the climate, though warm
and moist, is heaithy and agreeable, and that no serious endemieal diseases
prevail.
A brief description of the environs of the city of Huanuco may convey
some idea of the general aspect of the country we have been considering.
The city itself is in latitude ten degrees south, and contains a population




268

The Montana o f the Andes.

[April,

of about eight thousand. It stands on the hank of the Huallaga, one of
the principal sources of the Amazon. In front of the city is a beautiful
wide valley, every where dotted with flourishing plantations of sugar-cane,
cotton, coffee and tobacco. On the neighboring upland are fields of
wheat, barley and maize; or, where these are not cultivated, are found
large herds of cattle fattening on the rich pastures of those slopes.
Grapes, oranges, citrons, nectarines, “ avocado” pears, pomegranates, the
refreshing “ granadilla,” which is the fruit of the passion-flower, and many
other fruits are there; among which is the delicious chirimoya, which not
unf'requently weighs fifteen or twenty pounds, while in other countries its
weight rarely exceeds four pounds. This beautiful spot was one of the
few places selected by the Incas for their own pleasure, and in it are found
many ancient ruins. In the Quichua, or Inca language, it was called
“ Huanucumi Pilcopac,” i. e., “I die for Huanuco.” There is a species of
hawk in that locality, which is called Pilco. Its plumage is jet black,
with a scarlet crown of feathers on its head. I t feeds upon reptiles, some
of which are poisonous; and, when bitten, is said to fly to a certain bush
called JTuaco, the leaves of which it eats, and remains unharmed. Its
note has the sound of the word “pilco-huaco,” from which both the bird
and the plant derive their name. A decoction of the leaves of the plant
is esteemed very highly by the inhabitants of the Mantana as a cure for
acute rheumatism, and an antidote for venemous bites. The bird was
the emblem of the Inca sovereignty,-and is found on old Peruvian paintings.
The Incas fully appreciated the beauty and value of the Montana, and
caused roads to be made through it in different directions. There is an
old road leading from the village of Ambo to the city of Huanuco, a dis­
tance of fifteen miles. It is a broad, level highway, bordered by a dense
thicket of fine large trees, intermingled with the richest profusion of tro­
pical shrubbery. Beautiful vines twine among the branches, or hang from
tree to tree in graceful festoons or wreaths, shading the weary traveler
from the mid-day sun, while his senses are regaled with luscious fruits, the
sweet fragrance of flowers, and the enlivening songs of birds. Gorgeous
butterflies flit about,'rivalling the dazzling plumage of the humming­
birds. To the Incas it was indeed a fairy land, and no wonder they longed
to return to it, when absent on their expenitions to the dreary sea-coast,
or upon the cold Punos, or table-lands of the Cordilleras.
Throughout the length of the Montana, on its western border, are found
many large thriving towns, from which good roads are built, or can be
made with no insurmountable grades, to points for steamboat landings on
the Ucayali, Purus and Madeira, and their navigable branches, to which
points communication will yet be opened, with ramifications in every
direction for gathering up the precious and useful products of the land,
to be exchanged for the various articles of American manufacture so
highly prized there. Our Yankee commercial enterprise is ever ready to
engage in any paying adventure, and the moment that restrictions upon
foreign commerce are removed by Brazil, and the accessibility of those
regions by means of navigable rivers is demonstrated, our merchants will
' exchange commodities with the inhabitants to an extent that will prove
highly satisfactory to both parties, and the wealth of the Montana will be
poured out in ever-increasing abundance for the benefit of those who
seek it.
i




1864.]

The Montana o f the Andes.

269

W ho shall estimate the importance to the world of the future cottonfields of the Montana of the Andes, yielding as they will large and unfail­
ing supplies of that indispensable commodity ? The commerce of the
world is yet in its infancy.
The question will now naturally arise, “ How shall our country avail
itself of this boundless wealth ? Here is a country endowed by its Creator
with inexhaustible resources for the benefit of mankind. He has furrowed
it in every direction with large rivers to render it convenient of approach.
There is no want of energy among our countrymen, and they need only
the stimulus of prospective remuneration to induce them to enter on this
profitable field. Every one remembers through what fearful perils and
sufferings the earlier emigrants to California passed to reach that land of
gold. Nothing but the discovery of the precious metal drew them thither.
But the Providence, which designed to employ that new State for impor­
tant ends, bearing on the welfare of Eastern Asia and the islands of the
Pacific, concealed the mineral wealth of the land, until in the fullness of
time its sovereignty had passed to the most enterprising of nations. Then
the secret treasures were revealed, and immediately, in [defiance of all
dangers and hardships, the region was settled. So will it be with the
Montana of the Andes. Not that the sovereignty of the land shall ever
be wrested from its rightful owners; but as soon as Brazil shall consent, a
friendly international commerce will spring up, t» the advantage of all who
engage it. The only difficulty in the way of entering at once on this new
avenue of trade is the restriction which Brazil has placed on the naviga­
tion of the Amazon and its tributaries, which is at present forbidden to
foreign vessels. It is believed that this obstacle can be easily removed by
negotiation with the Brazilian Government; for the reigning Emperor is
known to be a man of large national views, earnestly desirous to promote
the rapid development of the resources of his Empire, in which work he
will receive the ready and sympathizing co-operation of the new liberal
Parliament, assembled in January of the present year. The Brazilians
themselves are a very enterprising people, and are better disposed than
ever before to enlarge their business intercourse with the United States—
a feeling strongly confirmed by the recent exasperating conduct of Eng­
land.
Such an opening of the numerous and noble rivers of South America,
hitherto almost useless to the world, would practically bring to our doors
the vast wealth of that continent. It would tend also to the rapid eleva­
tion of its great States, Peru, Bolivia, Ecuador and Brazil. Should our
countrymen become the pioneers in this enterprise, this would give us that
advantage over Europe in international influence and importance to which
we regard ourselves entitled, and of which, when once fully established,
we shall probably never be deprived. It may come to pass that the muchvexed Monroe Doctrine may yet receive its practical solution in the Mon­
tana o f the Andes.




270

The Cotton Manufacture o f Great Britain.

[April,

THE COTTON MANUFACTURE OF GREAT BRITAIN.
BY LEONE LEVI, PROFESSOR OF THE PRINCIPLES AND PRACTICE OF COMMERCE
IN KING’S COLLEGE, LONDON, ETC.

[Prepared from a Paper read before the Statistical Society of London.]

No district of tbe United Kingdom exhibits more conspicuously the
great phenomena of British industry, or the great secret of British wealth,
than that which has become, alas, so prominent for its sufferings and pri­
vations. The theme suggested by this great hive of industry, may indeed
engage our deepest thought and reflection. There coal and iron supersede
turf and corn, which render the aspect of the country as dingy as the
entrance of Hades. Illumined factories with more windows than Italian
palaces, and smoking chimneys taller than Egyptian obelisks constitute
the glories of the district. Everywhere you find monuments of indomitable
energy. All you see indicates the march of modern progress. Enter for
a moment one of those numerous factories ; behold the ranks of thousand
operatives all steadily working; behold how every minute of time, every
yard of space, every practiced eye, every dexterous finger, every inventive
mind, is at high-pressure service. There are no lumber attics nor lumber
cellars; everything is cut out for its work and the work for it, And what
could be more wonderful than those factories for the manufacture of
machines. Listen to the deafening din. W hat power has mind over
m atter! W hat metamorphosis can human industry perform; and how
much has this mighty agent changed the entire character of Lancashire.
See how thickly it is filled with cities and towns. In Northumberland
there are 208,000 square miles for each town. In Lancashire only 26,000.
And how close the inhabitants. In Westmorland there are 19 square
miles for each inhabitant. In Lancashire 0.97 only. One hundred years
ago Manchester had only 1,600 inhabitants; now with Salford she has
more than 450,000 people.* Three hundred years ago Liverpool was only
a fishing hamlet with 138 inhabitants; now she has also 450,000. The
entire county of Lancashire, in 1692, was returned for the land tax at a
value of £97,000; in 1860 she was assessed to the property tax at a value
* Tbe increase of population in tbe county of Lancaster was strikingly demonstrated
in the last census for 1861. Except in the two mining counties of Durham and Mon­
mouthshire, where the increase has been even greater, the rate of increase in Lanca­
shire during the last sixty years has been larger than in any other county in England.
Years.

1801
1811
1821
1881
1841
1851
1861

.......................... .....................................
................................................................
...............
................................................................
.......
................................................................
.................................................................
Total increase in 60 years,




Population.

Percentage increase
betw een tlie Censuses.

673,4S6
829,499
1,052,948
1,330,854
1,667,054
2,031,236
2,429,440

—
22
27
27
24
22
20
261

1884:]

The Cotton Manufacture of Great B ritain.

271

of £11,500,000. Whence this magic increase? Principally from the
cotton trade and manufacture.
It is in Manchester, too, that the steam Hercules whose power dwarfs
the fabled feats of the Grecian prodigy, first exhibited his youthful strength,
grew up in vigor and skill, and still manifests his gigantic maturity. This
system of industry is comparatively of modern creation—history throws but
little light upon its nature, for it has scarcely begun to recognize its exist­
ence; and the philosophy of the schools supplies scarcely any help for
estimating its results, because an innovating power of such immense force
could never have been anticipated. The steam-engine had no precedent,
the tall and ever-smoking chimneys had no parallel in times past, the spin­
ning jenny is without ancestry, and the mule and power-loom entered in no
recognised heritage. There they are even in their present temporary pro­
stration— an overflowing stream of opulence and power, a wonder to our­
selves, and to the world.
Cotton * is not a new article. All warm climates, within a limited zone,
especially those in the vicinity of the sea, produce cotton. From time imme­
morial cotton has been grown in Hindoostan,.China, Persia, Egypt, Candia,
and Sicily, and when South America was discovered, the natives were found
growing cotton. Yet, as it has been well said, cotton could only become an
Counties.

Rato of
Increase in
60 Years.

Stafford................
Surrey..................
Middlesex............
Warwick............ .
Cheshire ...............
W e s t R id in g , jYorkshire,........
City of York........
K e n t....................
S u s s e x .................. . .
Southam pton----- ..
East Riding, York ..
Bedford........ .
D erb y ................ ..

164

128
120

116

Counties.

Rate of
Increase in
60 Years.
____110

Worcester ..
Nottingham -.
Northumberland... 104
Lincoln........
Gloucester... . . . . . 94
Cornwall....... ___ 92
Cumberland . ___ 99
Leicester . . . ___ 83
Essex............
Hertford . . . .
Cumberland .
Devonshire.. . . . . 12
Northampton . . . . 1 3
Dorset...........

Counties.

Rate of
Increase in
60 Years.

Huntingdon... ..
Somerset.........
Berkshire........ ..
Norfolk........... ..
Suffolk............
Oxford ............ . .
Buckingham. . .
North Riding,
Y o rk .......... jWestmorland . ..
Salop..............
Hereford %....... ..
Rutland . . . . . . ..
Wilts.............. . . .

71
60
59
52
54
49
40
34
86

* The vegetable which we now call cotton passed under different names in different
times and countries. The term Carbasus, Carbasum, or Kaptfatfov, was used by
ancient authors to signify cotton. It is so U 3 e d in the Scripture. The word carpas in
Esther i., 6, though translated in the common version for “ green,” means really
cotton. In the Vulgate translation, we have “ et carbasini ac hyacinthini.” In Reve­
lations xviii, 12, the word Bvtftfog, mentioned as one of the wares of Babylon, may
mean cotton. But after the fourth century, cotton was known by various names
which had not been before in use. Probably gossypium was one of these; another
name was Lana Xylena, meaning literally tree wool, the plants which produced it
being called wool trees. Another set of names probably arose from a misapplication
of the name of the silk-worm. These were bambacinus, made of cotton; bambacenium,
cotton cloth; batnbacarius, a dealer in cotton cloth ; and in Italian, bambagino, and
bambasino. For further researches on the introduction of cotton, see “ Textrinum
Antiquorum, an Account of the Art of Weaving among the Ancients,” by James
Yates, F. R. S.




272

The Cotton Manufacture o f Great Britain.

[April,

article of trade to those nations which were able, by their industries, to manu­
facture it into beautiful and durable material, at moderate prices. The manu­
facture of vegetable substances, combining flexibility and strength, must be
of very early date, and to the inhabitants of the temperate and tropic zones
especially, the great weight and toughness of skins, must have made patent
the advantage of any material which could be made of the necessary
strength, and at the same time light and flexible. In ancient times India
furnished Europe with her muslins, so called from Mosul, in Mesopotamia.
The Assyrian merchants brought such cotton manufactures into Europe,
together with their silks from China, their carpets from Persia, and their
spices from the East. Herodotus, writing in the year 445 before the
Christian era, said of the Indi, “ the- wild trees bear fleeces for their fruit,
surpassing those of the sheep in beauty and excellence, and the natives
clothe themselves in cloths made therefrom.” From India the manufacture
reached Persia, thence it was imported into Egypt, and the eight century
saw its introduction into Europe.
In England for a long time the consumption of cotton was confined to
small quantities, principally for candlewicks, and nearly the whole of the
cotton fabrics consumed was imported from the Continent. Though as far
back as 1328 the Flemings settling in Manchester laid the basis of the
British wool manufacture, in the manufacture of what' were called Manches­
ter cottons, it was not till the middle of the seventeenth century that cottonwoollens, fustians, dimities, and other articles were exported to the Conti­
nent. But as late as the accession of George III., no fabric consisting
entirely of cotton was made, and it was only by the operation of those
wonderful inventions which suddenly performed so great a revolution, that
cotton acquired the present prominent position as an article of trade in this
country. W hat these inventions were every one well knows : yet there is
great interest in recalling those feats of genius which now and then ennoble
our common humanity.
Spinning by the spindle and distaff is a very old industry, and in times
not far distant, was considered one of the accomplishments of a good wife.
“ She layeth her hands to the spindle, and her hands hold the distaff,” is
the saying of the Book of Proverbs. Minerva, as the instructress of man
in the useful arts, is fabled as the author of a distaff and spindle; hence, as r
Apollodorus informs ns the Palladium held in its right hand a spear, and a
distaff and spindle in the left. It was the custom among the Romans to
carry before the bride a distaff charged with flax, and a spindle likewise
furnished. In Greece, when the bride was introduced to her new home,
she brought with her a distaff and spindle, and hung her husband’s door
with woollen yarn ; and in England spinning on the distaff continued long
to be the honored occupation of women.* In process of time the distaff
was laid aside for the spinning wheel invented by Jurgen, a citizen of
Brunswick, in 1530, though some say that it was known long before him.
But though by the spinning wheel there were formed the thick loose cord
called a roving, and the fine thread or yarn, this invention was not attended
*See an able paper on the Distaff and the Spindle, or the Insignia of the Female
Sex in Former Times, by John Tonge Akerman, F. S. A„ “ Archeologia, or Miscel­
laneous Tracts relating to Antiquity,” published by the Society of Antiquaries, vol.
xxxvii, p. 83.




1864.]

The Cotton Manufacture o f Great Britain.

273

with great results, because the spinner could only produce one thread at a
time, and a man employed eight hours a day could only spin three-quarters
of a pound of yarn. The first substantial improvement was therefore a
machine for spinning by rollers, which forms the basis of all the spinning
machinery in our factories at the present time, invented by Wyatt, but for
which a patent was taken by Lewis Paul, a foreigner; but even that led to
no immediate results, as it was scarcely understood at the time. Then came
the invention of the fly shuttle and the picking peg, which enabled one
man, unaided, to weave double the quantity he had theretofore done; and
in 1753 Mr. Lawrence Earnshaw invented a spinning machine and cotton
reel, but which he himself destroyed, on the plea that it would be the ruin
of the working-classes. Although these and other minor improvements
were for the time barren of results, and were far from proving lucrative to
the inventors themselves, they prepared the mind of the people for further
changes, and suggested those ideas which eventually ended in totally super­
seding manual labor in the cotton industry.
Ten years after this a reed maker of Leigh, a certain Thomas Wright,
found out the principle of the spinning jenny, or a machine by which the
spinner was enabled to produce several threads in one operation, and in the
following year, in 1764, James Hargreaves gave reality to such a machine,
and patented it. For this, however, he was attacked by a mob of the
working people, who broke into his house and destroyed the jenny. Great
as was the improvement introduced by the spinning jenny, it still left the
process of spinning in a very unsatisfactory state, the cotton not being
sufficiently even, firm, or strong for use, as the warp or longitudinal thread
of a web. To supply this want, linen yarn was used for the warp, but the
mixture of two different materials made the article too costly, and, more­
over, unfit for calico printing. Such was the condition of the cotton manu­
facture in England when Aikwright invented the water frame, How far he
may have profited of the earlier invention of Lewis Paul, of elongating
cotton by rollers in the spinning operation, we know not; but what if he
did ? The law of continuity, or rather of gradual progress, says Lord
Brougham, governs all human approaches towards perfection. The limited
nature of man’s faculties precludes the possibility of his ever reaching at
once the utmost excellence of which they are capable. Survey the whole
circle of the sciences, and trace the history of our progress in each, you will
find this to be the universal rule. Think not that Black and Priestly,
Bacon and Adam, Smith, Cuvier, and W att were respectively the unaided
discoverers of the theory of latent heat’ and of aeriform fluids, of the induc­
tive system, of economic science, of fossil osteology, and of the power of
steam. Even Newton, though far in advance of all others in mathematical
and in experimental science, was preceded by Cavalleri, Roberval, Fermat,
and Schooten, who came as near as possible to the discovery of the differen­
tial calculus. Very romantic is the story of Sir Richard Arkwright. Fancy
a barber, famous only for his processes for dyeing hair, becoming the foun­
der of the great cotton manufacture. Even after the fruitful idea entered
his mind, he could not appear at an election in Preston for want of a suit
of clothing. Arkwright’s water frame, while drawing out the carding or
rolling, gave to it the twist and pressure necesary to produce the hardness
and firmness which fitted it so admirably to the purposes of the warp ; and
it was at the same time capable of producing, in equal vast quantities, yarns




274

The Cotton Manufacture of Great Britain.

[April,

of finer quality. The effect of these inventions was, as already noticed, a
total revolution in the character and operation of the spinners. Thenceforth
spinning ceased to be a domestic manufacture, and became the product of
mechanical ingenuity, and with it rose also the wonderful factory system,
which, with its attendant advantages, economy of power, division of labor,
and concentration of skill and superintendence, contributed so much to the
extension of the cotton manufacture and the accumulation of wealth.
Other inventions followed each other afterwards with great rapidity. To
Crompton of Bolton, we owe the mule jenny, which, by uniting the rollers,
of the water frame with the advancing and receding carriage of the jenny,
effected the attenuation and spinning of cotton to a degree of fineness that
neither of the other two machines could approach. To Cartwright we owe
the power-loom, a machine for weaving by automatic power; and to Peel
we owe the introduction of calico printing. But we should ill appreciate
the value of these and other kindred inventions, if we did not take them in
connection with W att’s great discoveries of the use and application of
steam power, and with the improvements made in inland navigation by the
opening of the Bridgewater canal.
And to what use would have been this great development of the cotton
manufacture, had not a corresponding increase taken place in the production
of cotton wool? Hitherto the importation of cotton to this country had
been very limited. In 1764 we imported scarcely 4,000,000 lbs., and even
in 1785, after Arkwright’s patent had expired, we imported only 18,000,000
lbs. of cotton. By this time, however, the seed had been transported to
the United States, and very soon after a complete change took place in the
capability of that country ior producing cotton, by the invention of Mr.
Whitney’s machine to separate cotton from the seed. This machine did
for the planters of the American States what the genius of Arkwright and
W att did for the cotton manufacture in England; and it is to this machine
that we owe the gigantic expansion of the cotton trade. Previous to 1790
the United States did not export a single pound of cotton. Whitney’s inven­
tion came into operation in 1793, and in 1794 1,600,000 lbs. were sudden­
ly exported. In 1791 America grew only -jyjth of the produce offered in
the markets of the whole world ; in 1845, more than seven-eights of the
cotton produced in the world was in the United States of America; and in
1861 they gave upwards of one thousand millions of pounds. And as the
production increased, so the consumption increased immensely. Little by
little has this interest acquired gigantic proportions. Farther and farther
has the use of cotton been extended, and by degrees it has nearly distanced
all other branches of British industry.
Of 6,300 factories in the United Kingdom, nearly the half of them are
for cotton. Of 36,500,000 spindles, 30,000,000 are for cotton. Of .490,000
power-looms, 399,000 are of cotton. Of 779,000 persons employed in
factories, 450,000 are employed in cotton. And as compared with foreign
countries, whilst we have 30,000,000 spindles, France has 4,000,000
spindles, Russia 2,000,000, Germany 2,000,000, Austria 1,500,000, Switz­
erland 1,300,000, Italy 500,000, Belgium 500,000, and Spain 300,000.
The proportion of the cotton trade to the general trade of this country is
very large. Of £377,000,000, which constitutes the value of the total trade
of the United Kingdom, £94,000,000, or 25 per cent, is the value of the
imports and exports of cotton.




1864-1

276

The Cotton Manufacture o f Great Britain.

RELATI.ON OF THE VALUE OF COTTON MANUFACTURE AND YARN EXPORTED,
TO THE TOTAL EXPORTS OF BRITISH AND IR ISH PRODUCE.
Value of Cotton
Manufactures and Y arns
Exported.

Years.

1820-24
1825-29
1830-34
1835-39
1840-44

. ............. £19,922,000
. ............. 16,974,000
. ............. 18,417,000
. ............. 23,211,000
. ............. 23,806,000

1845-49 . .............
1850-54 . .............
1855—59 . .............
1860 . . . .............
1861 . . . .............

24,902,000
30,485,000
40,658,000
52,012,000
46,837,000

Total Value.

Percentage.

£36,782,000
36,050,000
38,641,000
45.250.000
52.176.000

46
47
■ 47
51
45

58,637,000
84,002,000
116,120,000
135,891,000
125,115,000

42
35
41
38
37

RELATION OF THE VALUE OF RAW COTTON TO THE TOTAL VALUE OF FOREIGN
AND COLONIAL MERCHANDIZE EXPORTED.
Value of Raw Cotton.

Years.

1854
1855
1856
1857
1858
1859
1860
1861

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

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

£2,302,000
2,475,000
3,346,000

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

4,218,000
5,388,000
8,578,000

Total Value.

£18,636,000
21,003,000
23,393,000
24,108,000
23,174,000
28,281,000
28,630,000
35,694,000

Percentage.

12
11
14
14
17
14
19
24

And of £217,000,000, the total value of our imports, £39,000,000 was
the value of cotton.
RELATION OF THE VALUE O F RAW COTTON IMPORTED TO THE TOTAL IMPORTS
INTO THE UNITED KINGDOM.
Value of Cotton (Raw)
Im ported.

Years.

Value of Total
imports.

Percentage.

. . £20,175,000
.. 20,849,000
. . 26,448,000
. . 29,289,000
. . 30,107,000
. . 34,560,000
. . 35,757,000

£152,389,000
143,543,000
172,544,000
187,844,000
164,584,000
179,182,000
210,531,000
217,352,000

13
14
15
15
18
18
17
18

Total imports,.. . . £38,653,000
“ exports, .. . . 55,415,000

£217,352,000
160,809,000

••

£94,068,000

£378,161,006

40

1854
1855
1856
1857
1858
1859
1860
1861

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

And who can tell the amount of the cotton manufacture consumed in
this country. It probably amounts to £30,000,000 and more. Calculating
the quantity imported reduced by the percentage of waste in the conversion
into yarn; and then at so many yards of manufactured goods per pound,




276

The Cotton Manufacture o f Great Britain.

[April,

with proper deduction for the export of yarn and manufacture, the con­
sumption of cotton in this country may be set down 7-| lbs. per head. In
France the consumption is probably 4 lbs. per head. In Germany and
Austria 3 lbs. In Italy 2 lbs., and in Russia 1 lb.
But large as is the consumption of cotton in this country, we cannot say
that it has displaced materially the consumption of wool, linen, or silk. If
we import 1,200,000,000 lbs. of cotton, we also import 147,000,000 lbs. of
wool, besides the large quantity produced in this country ; 224,000,000 lbs.
of flax and hem p; and IQ,000,000 lbs. of silk. In describing the extent of
our trade in cotton, I have not indicated the numerous trades ministering
directly or indirectly to the prosecution of this branch of industry. The
capital invested in this manufacture has been variously estimated, and may
be set down at at least £100,000,000,* whilst the shipping required to carry
the large quantity of cotton from the Atlantic and Eastern ports is not less
than 1,000,000 tons.
The cotton manufacture has some specific localities in this country;
chiefly in England; but partly in Scotland. Ireland has just a sprinkling
of it. In England, Lancashire is the chief place, next Cheshire, and then
Yorkshire and Derbyshire, with a little in Cumberland, Notts, Stafford,
Gloucester, and Leicester. In Scotland, Lanarkshire is the chief place, and
there is a little in Renfrewshire, Perth, Ayr, <fcc. Of 450,000 persons em­
ployed in this manufacture, 407,000 were in England and Wales, 40,000
in Scotland, and 3,000 in Ireland. The great cotton towns distinguished
for their smoke, dirt, bustle, excitement, and dense population, are Man­
chester, Wigan, Bury, Bolton, Blackburn, Preston, Leigh, Oldham, AshtonStaleybridge, Hyde, and Stockport. The following are the statistics of fac,
tories for textile fabrics, extracted from a return laid before Parliament in
1861

* It is difficult to estimate the capital embarked in the cotton manufacture. In an
article on the difficulties and dangers of the cotton trade, by Mr. Bazley, M.P., it is
stated that the fixed investment, including land and water rights, may amount to
£60,000,000, and that to work all these concerns and their ramifications, £20,000,000
more are needed, making in all £80,000,000. Besides this, he valued the mercantile
and consumers’ stock, in home and foreign markets, of cotton and auxiliary materials,
and bankers’ capital devoted to the manufacture, at £120,000,000, making the whole
gross capital employed in it £200,000,000. This is certainly a large estimate. In the
article in the “ Encyclopaedia Britannica,” supposed to be by Mr. Bazley himself, the
capital invested in this manufacture was estimated at £54,000,000. Mr. Redgrave,
the factory inspector, in his paper on the Textile Fabrics, presented to the Inter­
national Statistical Congress, computed the cost of building, steam-engines, machinery,
<tc., at £21,000,000, raw materials £8,000,000, wages £4,000,000, grease, oil, leather,
£1,000,000, making in all £34,000,000 ; and if we take Mr. Ellison’s estimate as given
in Mr. Mann’s work, of 23s. to 24s. per spindle, and £24 per loom, we shall have for
30,387,000 spindles and 399,992 power-looms, £45,000,000. Estimated floating capi­
tal and cash in the hands of bankers, £25,000,000; probable capital employed by
manufacturers in subsequent processes of bleaching, dyeing, printing, £30,000,000;
floating capital of importers of raw materials, shipowners, <fcc., £9,500,000; total,
£ 110,000, 000.




1864.]

The Cotton Manufacture of Great Britain.

277

STATISTICS OF FACTORIES FO R TEXTILE FABRICS.

Number of
Spindles.

Number of
Power-looms.

Number of
Operatives.

E ngland—
Lancaster............. . . 1,979
York........................... , 369
Chester....................... , 212
79
Derby.........................
15
Cumberland...............
10
Middlesex.................
8
Stafford......................
3
Leicester...................
26
N ottingham .............
1
F lin t..........................
1
Suffolk.....................
hi
Warwick................... •
2
Surrey........................ .
1
Gloucester.................
2
Norfolk......................

21,530,532
2,414,898
3,373,113
682,008
136,212
5,834
81,116
4,408
36,000
21,800
—
—
—
66,004
—

306,423
17,393
32,926
7,581
1,761
694
14
—
—
32
186
—
1,115
—

315,627
27,810
40,860
12,965
3,281
323
1,982
219
2,183
190
52
445
53
1,514
94

2,715

28,351,925

368,125

407,598

2
4
A
1
83
1
3
32
5
3

66,276
52,148
75,296
16,308
1,138,602
19,800
57,796
408,742
50,190
30,240

70
977
246
24,149
—
552
2,968
180
968

770
976
758
112
27,065
121
1,069
8,749
528
1,089

138

1,915,398

30,110

41,237

72,884
11,668
—
30,292
5,100

200
. 391
60
36
940
130

639
492
77
18
1,412
96

9

119,944

1,757

2,734

Cotton Factories United
j- 2,887
Kingdom.............

30,387,267

399,992

451,569

2,182,609
1,289,172
18

21,770
43,048

86,983
86,063

Number of
Factories.

Scotland—
A berdeen.................
B u te ..........................
Dumbarton...............
Dumfries...................
L anark..................... .
Linlithgow.................
P e r t h ........................
Renfrew ...................
Stirling......................
A y r............................

I reland—
Antrim.......................
Dublin ......................
Londonderry.............
Tyrone...................... .
W aterford.................
Wexford....................

1

Woollen Factories—
Woollen.................... . 1,679
W orsted...................
VOL. L.---NO. IV.




_

—

—

278

The Cotton Manufacture o f Great Britain.
N umber of
Factories.

F la x ........
H em p. . . .
Ju te .......... ..................
Hosiery. . .
Silk...........

36

N umber of
Spindles.

Number of
Operatives.

1,888,544

14,792
1
554
—
10,709

87,429
607
5,967
4,487
52,429

36,449,828

490,866

779,534

1,216,674
2,580
32,982
—

6,378

Number of
Power-looms.

[April,

There is one important feature in the cotton industry which invests it
with something more than simple commercial considerations, it is that
cotton has greatly contributed to the spread of comfort and civilization
among the masses of the people. Hitherto it has been the cheapest
material for clothing ever produced. Even where the masses are yet sunk
in the most abject condition, and in places not yet brightened by the light
of civilization and Christianity, wherever, in fact, a cover is needed to shel­
ter man, whether in frozen regions or in tropical climates, a cotton dress and
a fustian jacket will ever find a hearty welcome. In a paper read by Mr.
Ashworth before the Society of Arts, he compared cotton with wool and
flax. One pound of wool for flannel cost 18d. per lb .; when manufactured
into cloth it costs 3s. Id. per lb.; 1 lb. of flax for shirting costs lOd. per
lb., when manufactured it costs 2s. 4cf.; but 1 lb. of cotton for shirting,
which used to cost 6d. per lb., when manufactured costs only Is. per lb.
The materials for a full dress of outer garments, if composed of wool, would
cost not less than 30s., whilst the same quantity of material of cotton, and
of more durable quality, cost only is. 6d. to I Os. The labourer’s wife was
able to purchase from a draper a neat and good cotton print at 5d. per
yard, and allowing seven yards to the dress, the material required only 2s.
l i d . How much more is the cost of a woollen dress even of the lowest
quality. This source of economy, which entirely depends now upon the
cost of the materials, makes the question of cotton supply a consumer’s
question— a question in which all are interested.
And how extensive is our commerce in this article. It is an extraordin­
ary fact that we are importing nearly 600,000 tons of cotton from a distance
of four thousand miles, and even 13,000 miles; and after redistributing
about 78,000 tons of it in an unmanufactured state, we convert the remain­
der into yarn and woven manufacture of all kinds af three times the original
cost of the raw material when landed on our shores. Whilst the value of
the raw cotton imported in usual years amounts to about £36,000,000 to
£38,000,000, the value of the cotton manufactures exported, besides the
entire quantity consumed in this country amounts to as much as £47,000,000
to £ 50 ,000 ,000 . Our exports of cotton manufactures and yarns are enor­
mous. W e are sending abroad yearly some thousand millions of yards of
calico printed and dyed ; and we could not in our space give the quantities
of other articles. W ith the general adoption of better principles of com­
mercial policy, most nations have been reducing sensibly their duties on
cotton manufactures and yarn. Even France, hitherto closed to British
goods, has now been opened, and bids fair to become a most extensive field
for commercial intercourse. How auspicious was it to have thus opened a
new outlet for our industries just before the stream of prosperity ceased to
flow towards the United States.
Some surprise, or rather fear, has been expressed in influential quarters




1864.]

The Cotton Manufacture o f Great Britain.

279

on seeing Russian and Swiss cotton yarn sold in the British market. Most
likely it was sent to this country to take advantage of the high prices.
Certainly the time has not come yet when these countries can produce
more than they can consume themselves, or produce cotton yarn cheaper
than British manufacturers. But can it be that a formidable competition
is likely to be met with in future in this, we may say, the most indigenous
of English manufactures? Nothing, certainly, hinders foreign manufactur­
ers, with wealth at their command, from importing this exotic vegetable as
we d o ; or India from consuming the article of her own growth ; and manu­
facturing it to the highest perfection. Nor are they hindered from import­
ing the best machinery ever invented, the most skilful engineers, the most
skilled workmen. All is now free. This is no longer the age of mystery.
No longer the age of artificial protection to national industry. And yet we
anticipate that English manufacturers will always be able to face such
competition, and permanently maintain the supremacy they have hitherto
enjoyed. And why ? It is because we must attach the greatest importance
to our national character, to the strenuous energies of our manufacturers to
overcome difficulties wherever they may present themselves, and, above all,
to the moral worth and physical aptitude of our people to work hard and
long. Whilst the present pre-eminence of Britain in wealth, with her com­
mand of the markets of the world,, and her riches in coal and iron, which
no nadon can rob her of, and no free trade can communicate to others, will
ever keep her at the head of the manufacturing countries of the world.
[Are not the latter portions of this article particularly suggestive to us as a
nation? We are raising the raw materials in abundance. Cotton, wool, flax,
in immense quantities, are at our very doors. The food to feed an army of
operatives we also have; while the earth itself, almost, we might say, through
the entire length and breadth of this favored land, holds inexhaustible treasures
of coal and iron. What more do we need to make this country the centre of
manufactures, if not for the world, certainly for this half of it. We can conceive
of but one obstacle in our way—an indisposition on the part of Government and
people to improve our communications with other countries, and thus open up
new markets for our productions and manufactures. Great Britain has, by
means of the steamship lines already established, obtained control of the markets
of the world. This is what has enabled her, and still enables her, to defy compe­
tition. Professor L evi tells us that he thinks English manufacturers will always
be able to maintain the supremacy they have hitherto enjoyed because, among
other things, of the physical aptitude of Englishmen to work hard and long.
All the world will willingly bear testimony to the Englishman’s energy and
perseverance; but yet we think it will be as readily admitted that the American
cousins have in no degree lost either of these characteristics, but have rather
added to them unusual quickness and ingenuity. Only give us, therefore, steam­
ship lines communicating with the countries of the world, and we believe the
next quarter of a century will see a development in this country, in the direction
of manufactures, unequalled in the history of the world.— E d . H unt ' s M erch ­
ants '

M aqazine .]




280

Steam on the Pacific Ocean.

[April,

STEAM ON TIIE PACIFIC OCEAN.
TRADE

BETWEEN

CHI NA AND

JAPAN.

H. B. A.

(Continued from page 175.)
T h e harbor in China, to which a line of steamers would be directed
from California, would soon be settled by the inducements offered in
freights and central position. H ong Kong, Shanghai, and Chusan Island
are the three which are the most obvious; all good harbors, and all pos­
sessing separate claims to the trade.
Hong Kong is the centre of British influence, a free port— the European
center, as Shanghai is the Chinese center. Canton, which is commanded
by Hong Kong, is fast dwindling in importance, and her tea trade is dis­
tributed between Foo Chow for the black teas, and Shanghai for the
green. She retains the kind known as “ Canton-made teas,” and the trade
in sweetmeats and knick-knacks so widely known abroad. Kice is an­
other great staple, although more likely to be a ship, than a steamer,
cargo. Hong Kong is also the center of the Chinese em igration; the
people of the northern provinces not being so ready to leave home as the
Cantonese and it is to Hong Kong that the Californian flour and specie
must find their way. Moreover, the Chinese merchants in California,
who are large freighters of every vessel, are generally Canton men, and
their connections are naturally with that port. All these things tell
powerfully in favor of Hong Hong.
The city of Shanghai, on the other hand, is the great emporium of the
silk trade, the tea trade, and the cotton trade. Since the opening of the
Yang tze, the change in the direction of trade with China would be al­
most incredible, did we not know that it was a necessary result of the
close of a policy which, by limiting intercourse to one city in the south,
turned the whole course of trade many hundred miles out of its natural
channels. The trade which centers in Shanghai is enormous, and it must
increase with every year as the steamboats of the foreigners penetrate
into the interior. W e are just beginning to realize that China is open,
and that the volume of trade resulting is not to be measured by the past.
Shanghai, within five years, has become a noble city, almost European in
its proportions, and commanding a trade with many millions of people in the
interior of China a “ back country” such as on sea board city in the world
can boast. Its position, in regard to the silk districts, makes it an im­
portant terminus for any line of steamers which could connect with the
Panama route so as to lay the goods down in Hew York in sixty or sev­
enty days, ensuring to such a line the entire silk freights to America at
high rates. A ton of silk goods is worth from $10,000 to $15,000, and
the saving in interest alone, to say nothing of insurance, would pay a
heavy freight. A t present a large proportion of the silk going to
England, goes forward by the Peninsular and Oriental Line at the rate of
£22 10s. per ton of 40 cubic feet, from Hong Kong to Southampton,
with an additional charge for the eight hundred miles between Shanghai
and Hong Kong. The delays of frequent transhipment and a heavy
freight are borne rather than risk the delays and loss of interest of a voy­
age around the Cape. Notwithstanding these enormous freights




18(34.]

Steam on the Pacific Ocean.

281

and their numerous steamers, the Peninsula and Oriental Com­
pany are unable to take all the goods offering, and written applica­
tions are made by the merchants some time in advance, on which pro­
portional allotments are made by the agent, as the steamers are ready to
load. This great steamship monopoly has become rich by its trade with
the East, although requiring an immense capital and outlay. Its fifty
pounds shares, on which thirty pounds only have been paid, stand at
twenty per cent premium in the London Market. The freight and passage
rates obtained by it are out of all proportion to the work done, and there
is pressing call for greater accommodations and lower rates. Within a
year theMessageries Imperiales de France, backed by the Imperial Gov­
ernment and a heavy capital to boot, with a large steam-fleet to which
they are making yearly accessions has entered into a strenuous competi­
tion with the Peninsular and Oriental Company for a share of the traffic,
but this has had no effect in reducing rates. Both Companies are likelv
to amass money without practically interfering with each other. There
is ample room for others.
Shanghai, besides being the depot of the silk districts is the centre of
the great trade of the Yang-tze, and through it will be distributed the
bulk of the imports of China. It has communication with Hankow by
steamers of fifteen hundred tons burthen, and for trade with the richest
and most populous provinces of China its facilities are unsurpassed. It
also draws considerable trade from Japan.
Chusan has been proposed as a fitting terminus for a line pf steamers,
on account of its central position, the fine harbor of Tinghae, and the
theory which is very attractive to men who locate steamship lines by
looking at the map, that its central position would command the trade of
the China coast. They forget that a centre of trade is not merely a geo­
graphical centre, but one which possesses the greatest facilities of com­
munication. New York would never be what she is but for her canal and
railroads. Such theorists forget, also, that Eurqpeans are not the only
merchants in the Chinese Empire, and cannot dictate where business shall
be done, for nature and chance have chosen certain spots for cities, and
where the Chinese merchants are, the Europeans must arrange to meet
them. Shanghai, from time immemorial, has been a great commercial
depot of northern China, as Hank6w is of central, and the island of Chu­
san has not. No doubt Tinghae has a very good harbor, although some­
what difficult for strangers from the perplexing labyrinth of islands, and
Chusan island is a very pleasant and salubrious place for Europeans; if
trade really centered there it would be an admirably central position.
But trade tends to Shanghai as its centre, and the foreign merchants act
accordingly.
A few years ago the citizens of Benicia thought, that, because, it was
more accessible to the interior of California than San Francisco, it could be
made the great commercial seaport of the State, while San Francisco would
be what Gravesend is to London ; whereas that former capital and present
village is now a quiet workshop for the Pacific Mail Steamship Company,
and a mooring place for their reserve steamers not wanted in the San
Francisco trade.
The people of Chusan have greater comparative claims over Shanghai
as far as geographical position is concerned, but the fact is that Shanghai,
like San Francisco, has passed the doubtful age, when it was not quite




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[April,

certain whether the great promise of the growing city would be fulfilled.
This is seen in both instances by the price of real estate.
In regard to the pest of piracy which is the plague of the harbors of
China, even Hong Kong, under the eye of Government, is not exempt.
Chusan is one of the great eruising-grounds of the Ningpo pirates, as
great scamps as there are in the world. The small islands give them
shelter, and make it extremely difficult to abate the nuisance. Any dis­
abled vessel would be sure to be captured. Only a few months ago they
seized the house boat of Dents & Co’s branch at Ningpo, a foreign built
boat of eighty tons, laden with opium and specie, and beat off a gun-boat
sent to recover it. The Woosing river is tolerably free from pirates—
thanks to the number of vessels passing up to Shanghai— but here, as in
the other ports, it is bad enough, so that there is not much choice, as far
as that is concerned. The only safety is in arms, and that is perfect, for a
China pirate never attacks a boat stronger than his own, and rarely a foreign
steamer.
And now having discussed the route, the ship and her ports, supposing
that she sails from San Francisco via Honolulu, to Shanghai, and returns
by way of Yokuhama, let us see whether a fair freight and passage list
could be expected.
It is difficult to say in advance what class or amount of freight would
offer at first. Silk goods might be relied on, but the quantity in the
beginning would not be large. Fine teas to a certain amount would be
sure to offer, and if it could be made clear that the first of the new crop
could be landed in New York before the clippers could take it, at least
one full cargo would be certain. The steamer “ Bahama”— an auxiliary
screw— obtained twelve pounds per ton from Foo-Chow to London, in
May, in consideration of the chance of a few weeks earlier delivery, while
ordinary freights were only four pounds, or thereabouts. She made the
voyage in eighty days. A few months experience would show what
amount and kind of freight would be obtained in China and Japan, and
whatever it might be, the offerings would be very certain to increase with
every voyage. It has been found by the experience of the screw line be­
tween Liverpool and New York, that with regularity, heavy freights
which no one dreamed of sending by steamer before, have been readily
obtained when least expected, and the same thing is much more likely to
occur in the Pacific trade. Returning from San Francisco the clippers
would compete seriously with the steamers, but there is one freight
always certain, bar silver and Mexican dollars. The great increase in the
silver production of Washoe, and the further increase likely to follow the
stimulus silver mining operations have received by the fever of speculation
last year, will soon open a very important trade. Silver as naturally
seeks China as water does its level, and it sometimes runs a roundabout and
expensive course to get there—from California to London and from Lon­
don to Hong Kong. I t was beginning to go to China in considerable
amounts by clippers early last year, and must steadily increase.* The
* The Exports to China for the first six months of 1863 were.......... $1,603,059 53
To Manila..................................................................................................
66,200
Ja p a n ........................................................................................................
8,186 19
Total..........................................................................................$1,677,445 72
The produce of the mines averaged one million per month.




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Steam on the Pacific Ocean.

283

silver mines of California are important realities, notwithstanding the
misty stories about them which have arisen from speculation run mad,
and many sober men think that they will yet prove as valuable as her
gold mines, from their greater extent. The best proof of their richness is
their steady and large yield.
The probability of a large passenger list is much more encouraging.
Once established, the line would draw passengers from England itself,
and all the American custom. Some Americans bound from New York to
China, give the preference to the Pacific route already, although it causes
them a delay of a month or more. No one who has not travelled by the
so-called overland route, via Suez, knows the inconvenieneies, annoyances
and discomforts which must be borne. The Peninsular and Oriental
Steamship Company is a prodigious monopoly, of the school of the Hono­
lulu East India Company, and the old Hudson’s Bay Company, both
happily extinct, and like all monopolies, is regardless of the comfort of
passengers. Transfersare made from port to port, attended with all the an­
noyances bad management can devise; the vessels are some of them old and
dirty, and on a long journey one is sure to get at least one of these un­
comfortable tubs. The heat on the Red Sea, the Indian ocean, Straits of
Malacca, and southern part of the China Sea is intense, and the chances
of storms exceed those of any other route to China. Some travelers have
the opportunity of comparing the relative forces of a levanter in the Medi­
terranean, a cyclone in the Indian ocean, and a typhoon in the China Sea,
all very ugly customers. No less than five transfers are made on the
journey from Southampton, and sometimes a steamer fails to connect at
Galle, or breaks down at Penang, and the unlucky traveler must go
ashore and shift for himself with the thermometer at ninety degrees for a
fortnight perhaps, the Company serenely taking its own time to repair
damages. The time from New York to Shanghai by this route is about
sixty days, the expense about one hundred and ninety pounds sterling— say
five dollars to the pound— nine hundred and fifty dollars.
By the Panama route, and steam from San Francisco to Shanghai in
thirty-five days, the time would be fifty-nine days, allowing three days in
San Francisco, and the expense could not possibly be as great as by the
other route. The average charge of the Pacific Mail Company for first
class tickets from New York to San Francisco is about two hundred dol­
lars, the competition of the Nicaragua route frequently reducing it con­
siderably, and sailing vessels from San Francisco to China charge from
one hundred to two hundred dollars, an extreme rate. Allowing three
hundred for a first-class passenger ticket from San Francisco to Shanghai,
which ought to remunerate any steamship Company, the total cost of
the journey would only be about five hundred dollars against nine hun­
dred and fifty by the Suez route, an ample margin for greater rates of
fare if the company in the Pacific should find it necessary to charge more.
They could safely do so if they looked only to the American travel, for
the comforts of such a route over the Peninsular and Oriental line would
be immense. In the first place it would not cross the equator, or linger
long in the tropics. To be sure the Peninsular and Oriental Company
does not d^> so either, but at Singapore they are within eighty miles of it,
and for a long, long distance they are in the heart of the torrid zone—
Only once does the Atlantic and Pacific line come within the equatorial
belt of rains, and that is at Panama, but a week’s journey takes us through




284

Steam on the Pacific Ocean.

[April,

it all, and as far as crossing the Isthmus, that bugbear of old times, is
concerned, three hours and a half are sufficient for the transit, and as it
is made in a comfortable railway car, it is not at all disagreeable even in
the rainy season. By a timely use of the telegraph, the transit is man­
aged with a despatch and quiet order that would seem incredible to any
one who has not made it. The road is equal to any in the United States
for substantial work, the appointments are excellent; the best English
railways are scarcely better. The only fault which travelers have to find
with the line is in the management of the Vanderbilt steamers, which are
often over-crowded till they are like cattle-pens. Vanderbilt is as greedy
a monopolist as the managers of the Peninsular and Oriental line, but
competition is making matters more decent. The Pacific mail steamers
and their management are all that could be desired.
Excepting for the short -time which is necessary to pass through the belt
of equatorial rains and clouds, banging for certain seasons of the year over
the neighborhood of the Isthmus of Darien, the traveler is in the pleasant
and equable temperature of the trade-wind zone, where the thermometer
ranges from seventy-two to seventy-five degrees. A gentle breeze is
always blowing, often a fresh one, and the whole voyage from New York
to Shanghai is to as great a degree invigorating to a person in delicate
health, as that by way of the Red Sea is debilitating. The writer once
traveled by the former route in early summer without taking in anything
between San Francisco and China but the studding sails and royals, and
those only once— more from precaution than necessity.
But it was remarked that a steam line between California and China
might draw passengers even from England itself, allowing fifty days from
London to Shanghai by the Peninsular and Oriental Company, at an ex­
pense of one hundred and sixty pounds sterling; let us see how the Paci­
fic route could compete. To do so at all, it would be.necessary that con­
nections should be made with some degree of regularity between the
Cunard steamers, the Pacific mail and our proposed line. Allowing
twelve days for the first of these, twenty-one days for the second, and
thirty-five for the third, the trip could be made in sixty-eight days, and
if the regular rates of fare are twenty-six pounds for the first, forty pounds
for the second, and sixty pounds for the third, there is still a margin of
thirty-four pounds to compensate for the loss of time. Returning, the
journey might be made in sixty-two days. When the greater comforts
of the route are considered, the longer time required would not be so
serious an objection as it appears at first sight. Both the time and the
expense would be reduced by taking the W est India to Aspinwall direct,
there connecting with San Francisco, but the passage among the West
India Islands at certain seasons of the year would be open to the same
objection as the Eastern route, and we are bound to say that thus far, at
least, these packets have manifested a sublime indifference to the move­
ments of the Pacific Mail Company’s steamers, generally managing that
their passengers spend a week at Panama.
Englishmen under these circumstances might prefer their own steamers
when going out to China, but on their return numbers would take the
Pacific route in preference. Many of those returning possess money and
leisure, and if they have never been to America would prefer passing
through the United States, if they could make the journey with despatch
and a reasonable degree of comfort. A few do so now in the favorable




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Steam on the Pacific Ocean.

285

season when the clipper barks run across to San Francisco in forty-five
days from Shanghai. Some return with impaired health, and no physi­
cian will recommend the overland journey to such. Better four months
at sea than one under the equator.
It only needs steam on the Pacific to divert a large share of the home­
ward travel from China. By the Peninsular and Oriental line the rate
of passage from Shanghai to Southampton is seven hundred and twentyseven Mexican dollars, equal to eight hundred dollars in American gold,
while if a reserved cabin is required the cost is upwards of thirteen hundred
Mexican dollars. All the comfort, and more, could be had by a Pacific
route for half that amount.
The exhorbitant charges of the Peninsular and Oriental Company, aplied to their branch line from Point de Galle to Australia, have taken
from them the great bulk of the Australian business, there being a power­
ful competition from sailing ships, with steam as an auxiliary, such as the
“Auxiliary Screw Steamship Great Britain.” This vessel without enjoying
any government subsidy, and without making a gain of more than 20 days
in her return passages over the regular clippers, and often not making that,
is able to run with profit at rates at which the Peninsular and Oriental
Company either cannot or will not compete. In one of her trips from
Sydney to Liverpool, around Cape Horn, she ran the distance in sixtyfive days, carrying no less than three hundred and twenty-five passengers
(first second, and third class), passage-money ranging from fifteen to
seventy pounds ahead per adult. The number of passengers carried by
the Peninsular and Oriental line from Australia varies from ten to twenty,
sometimes less than ten, the passage-money being one hundred and
twenty pounds, and the time about fifty-eight days. The line, however,
is supported by a handsome government-subsidy in consideration of its car­
rying the mail.
I t is worthy of remark that some of the Colonial papers are even dis­
cussing the feasability of the Panama route for speedy and certain com
munieation with the mother country, and some years ago one or two trips
were made to test the matter, but the distance and difficulty of procuring
coal made the expense too enormous to be warranted by any business
which such a line could obtain. It was proposed to make Tahiti a half­
way station, with boats of different grades to run the different parts of
the route, the one through the tropics, the other through the rough westwinds. This scheme was quite impracticable, for a return-boat would be
obliged to steam within a few degrees of the equator, or else against the
south-east trades for nearly five thousand miles, and when a vessel relies
so much on its machinery the bill for coal in the South Pacific is some­
thing frightful, and would ruin any company, no matter how large their
subsidy. It might bring England within forty days of her Australian col­
ony of Hew Zealand, they tell us, but it will be many years before the
scheme can be made practicable.*
* The entire correspondence between the Lord Commissioners of the Treasury and
the Agents of the Colonies of New Zealand and New South Wales was published by
the House of Commons on the 4th of September, 1863, throwing much light upon the
question of a postal route via Panama.
It appeared that the Legislature of New Zealand and New South Wales had voted
subsidies, the one £30,000 for five years, the other £50,000 for ten years, in all




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Steam on the Pacific Ocean.

[April,

No parallel can be justly drawn between this wild scheme and that of
connecting China and California, but the fact that it has been suggested,
shows the enterprise of the colonists, and of the steamship owners at
home, as well as the reliance of both -on the known liberality of the
British Government, in promoting by subsidies any reasonable plan for
facilitating her communication with her colonies in the East. If she con­
sidered her China trade in danger of being diverted, by speedier and
cheaper routes than those she now commands, a line of steamers from
Hong Kong to Panama, supported by a handsome subsidy, would be likely
to follow, and it has been proposed by men interested in the China trade.
Such a line following the route which has been marked out for the west­
ward trip, with the advantage that three days steaming from Panama
would place her in the trades, and not going north at all on the east­
ward voyage, but keeping on the southern edge of the north-east trades,
where a belt of easterly current is found of about two degrees in width,
would make the round trip from England to Hong Kong in fifty days,
and, if powerful steamers were used, in less time. W ith fewer trans-ship­
ments the delivery of freight would be more certain and rapid than by the
Peninsular and Oriental line. On the return trip from China large
steamers taking the northern route, and calling for fresh coal at Shanghai,
Yakuhama and San Francisco, would obtain any amount of freight which
they could carry; but such a line would not be as profitable as that pro­
posed from Shanghai to San Francisco. A t the former place passengers
£80,000, provided the Treasury would assist by contributing an equal amount, or by
paying half the expenses of the Pacific, and making no claim on the Colonies for ser­
vice on the Atlantic.
It was proposed to establish a line of steamers of 2,000 tons each, able to make
twelve knots average speed, and to perform a monthly service, the maximum time
between London and Melbourne to be forty-five days, in which an allowance of five
days was made for contingencies.
The arguments in favor were very powerfully urged, and no less eminent an author­
ity than Sir E dward B elohee expressed himself in favor of the route before a select
Committee, in these words:
“ I think that in either passage in the Pacific you would have a leading wind
which is the best wind always for a screw steamer, or you would have an opportu­
nity on the return passage of having what is called a soldier’s w ind; and that the
breezes which blow there would enable a vessel to go faster than she would ever
with strong breezes on the other side.”
The fact of Sir E dward’s having twice circumnavigated the globe, and being fami.
liar with the South Pacific, gives great weight to his testimony.
The arguments aganst the route were substantially, as already stated, the principal
one being that it would cost more than it was worth, and the Lords Commissioners
formally declined, in letters dated May 1 , 1863, to have anything to do with the matter
on the part of her Majesty’s Government.
The agents of the Colonies mentioned, however, made a strong protest against such
a decision being final, and threatened that New Zealand and New South Wales would
not pay for any postal arrangements, via Suez, and just dared to hint that i f they
could they would start the new line alone, and therefore, although it is not probable
that such threats will come to anything, it is not likely that we have heard the last
of the scheme.




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Steam on the Pacific Ocean.

287

and freight would be received from all C hina; at the latter the powerful
sseamers of the Pacific Mail Company plying between San Francisco and
Panama, with facilities for coaling at Acapulco, could forward both freight
and passengers with greater ease and despatch than any vessel with steam
as an auxiliary only, arriving after a voyage of four thousand five hun­
dred miles with empty bunkers, and another stretch of three thousand
five hundred miles before her to Panama. No reliance can be placed on
the winds of the Mexican coast.
The policy of our Government has for some years past been directly
opposite to that of Great Britain in the matter of giving encouragement
to the increase of steamship lines by a judicious and timely subsidy, or, in
other words, a liberal mail contract, and the result is that Great Britain
possesses a far larger steam fleet than America, and all the great ocean
lines have fallen into English hands with the exception of that to CalF
fornia by way of the Isthmus, and we have excluded them from this trade
by legislation, it being part of our coasting-trade, under which head we
have managed to include Maine and Oregon, with a sweep of sixteen
thousand miles around Cape Horn, taking in the continent of South
America as a matter of no consequence.
The unfortunate Collin’s line, of which we were justly proud, was broken
up for want of this aid, and now, in a time of trouble, the Government has
found the idle vessels of that line the best and most useful of its trans­
ports.
An enumeration of the trans-oceanic steamship lines, subsidized by the
Queen, and their results, commercially and politically, is hardly an agree­
able matter for study, in view of our own deficiencies in this respect, but
it should be a very profitable one, for it suggests a great deal.
First, we have the great Cunard lines, which Americans know all about;
then the Peninsular and Oriental, connecting with the Colonies o.f Gibralter and Malta, with Egypt, Bombay, Madras, Ceylon and Calcutta, Singa­
pore and all the China ports, and the Colonies of Mauritius, Australia and
New Zealand— the greatest steamship monopoly in the world. The West
India Packets are well-known, and they form a bi-monthly line to Aspinwall, where another branch skirts the coast of South America. Once a
month England sends a steamer to her Colonies of St. Helena and Cape
Town, and on the way she looks in upon the principal ports of the Afri­
can coast. Another steamer leaves weekly for Canada, via Portland, and
the Grand Trunk Railway. Again we find a steamer sailing monthly for
Lisbon, Rio and Monte Video. All these voyages are of considerable
length, some of them are long in point of time as that proposed, and all
are Royal Mail Steam ers; in other words they receive heavy subsidies.
All the shorter lines of propellers, etc., are purposely omitted from this
list, which is quite long enough to merit serious attention.
It may be urged with great show of reason that we have enough to do
at present to attend to matters at home, and to provide ways and means
for our heavy war-expenses, without spending money on postal routes
where England is ready to do all the work for u s ; but this question of
the Pacific is one involving a very small annual expense, which would be
a mere drop in the bucket which Mr. Chase is preparing to souse Congress
with at its next meeting, and the outlay, unlike many others will make
four-fold returns in a very brisk period. Leaving out of sight all it would
do for San Francisco and the benefit New York would derive by being




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The Dano- German War.

within thirty-five days communication by telegraph with Shanghai, a very
short time would serve to build up a steam navy in the Pacific, which
would be of incalculable value in event of trouble with any foreign
power.
In time of peace it would be reaping golden harvests for our Pacific
States, in time of war it would defend our coasts, and command the nor­
thern half of the grand ocean.
The Sandwich Islands are of first importance in event of war between
England, Russia, or the United States. They are powerless for defence,
owing their political independence in the first instance to the mutual in­
terests in them of the United States, England and France. A nation
possessing them or able to throw any considerable force there from the
China coast would do great damage to our Pacific trade and our whaling
fleet, and at the first outbreak of hostilities, Hawaii would quickly meet
the fate of the Isle of France or Mauritius. A large steam fleet in the
Pacific, and close connection between the Hawaiian Kingdom and Califor­
nia, would ensure it and us against such a calamity, which, from the future
importance of the Pacific trade, would be a very serious one.
Thus, it will be seen, that as a safeguard to our coasts, and protection to
our trade, as well as a means of increasing tbo prosperity of the richest
and most thriving States in the Union, and through her that of all others,
(for she has been the most bountiful,) steam communication between Cali­
fornia and Asia is a matter not only of local but of national importance
deserving national aid.

THE DANO—GERMAN WAR.
T. M. J.

W e spoke in a former number of the Merchants' Magazine of the prob
abilities of a European war. The fears we expressed then are realized
now. Austria and Prussia have advanced their standards into Schleswig,
and have been met by the army of King C hristian . Blood has been
spilt; the war has actually commenced, and who is wise enough to tell
us where it will end ? As this is a question of daily increasing interest to
the commercial world, we propose again to take up the story, and enter a
little more into the details of this Dano-German controversy.
The modern Danish monarchy consists of a kingdom and three duchies.
The islands and the northern portion of the Cimbrian peninsula, or the
province of Jutland, constitute the kingdom. The central part, which has
from the most ancient time been either a fief of the Danish crown, or a
component part of the monarchy, is the duchy of Schleswig. The
southern portion of the peninsula is the duchy of Holstein, and on its
south-eastern frontier lies the little duchy of Lanenburg. All these terri­
tories belong to Denmark ; but the two latter, instead of being fiefs of that
kingdom, as the former is, are fiefs of the Holy Roman Empire. Thus
the river Eyder, which separates Schleswig from Holstein, forms also the
boundary line between Germany and Denmark. And all the territory,
north of that river, looks to the king of Denmark as its rightful sovereign ;




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The Dano German War.

289

while the provinces on the south, claimed by the Danish monarch merely
in the capacity of Duke, acknowledge the superior authority of the Ger­
man Diet. This arrangement, uniting the two German Duchies to the
kingdom, and thus making the Danish monarch a member of the Diet,
cannot claim for itself any great antiquity. In the revolutions and politi­
cal earthquakes of past centuries, during which the map of Europe has
been so often dissected and made anew, the duchies occupied various
positions with regard to the kingdom. Sometimes the King of Denmark
governed them in their entirety as now, but they were more usually split
up into different fragments, and acknowledged the authority of different
princes. When peace came after the great Napoleonic wars, and the
time for gathering together the spoils, and readjusting the shattered frag­
ments of territory had arrived, Denmark received the little duchy of
Lauenburg, to compensate her for the loss of Norway; and that arrange­
ment was entered into with regard to Lauenburg and Holstein, which gave
to the Danish monarch a seat in the German Diet. Since that time
Holstein has been to Denmark a source of constant trouble. The people
being Germans are thoroughly imbued with true Teutonic feeling, and this
feeling, being fostered by their German kinsmen, has made them long for
the day when a German prince shall receive their heartfelt homage, and
make them a part of the great fatherland.
Every quarrel has two sides to it, and so has this. The friends of
Denmark say, “ that Austria and Prussia have not kept their word. They
have never acknowledged King C hristian as duke of Schleswig-Holstein,
which the treaty of London requires them to do; and, furthermore, they
are continually acting a double policy, which, of all policies, is the most
dangerous. In the first place they profess to desire peace, and have done
all they could to bring on war. In the second place they still acknowl­
edge the obligations of the treaty, and at the same time their aim is to
satisfy a people, that will not be satisfied, save the treaty be broken.”
These surely are serious charges. Let us examine then a little in detail.
First. They talk of their desire for peace, yet have done all they could
to cause a rupture. We cannot help thinking that thej' are somewhat
sincere, however, for they are the powers that have most to lose by war.
With Kossuth endeavoring to excite the discontented Hungarians to rev­
olution ; with Galacia so near outbreak, that the Emperor deems martial
law necessary ; with the King of Italy anxious to seize Venetia, why should
not Austria wish for peace? Then again, with France able and longing
to annex the Rhenish provinces, what has Prussia to gain by establishing
the principle that “ they should take, who have the power, and they should
keep, who can.’' Although their interest is unquestionably to preserve
the peace, yet there is another influence at work, pushing them on to
war. The voice of the people at all times speaks loud and forcibly.
There is no monarch in the world, nor has there ever been one, who can
set himself, and his government in direct opposition to the clearly ex­
pressed demands of the popular will. Even the Peruvian Incas, whose
authority was as unlimited as any ever possessed by man, were forced to
work upon the popular superstition and extort from their subjects the rev­
erence due to the children of the Sun, in order to acquire that despotic
power, which it is the undisputed right of a deity to wield. They rested
their authority on the religious devotion of their subjects, and made rebel­
lion against their government not a crime only but a sin ; and every




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The Dano- German War.

[A p ril,

monarch, who would not be driven from his throne by an enraged people,
must sustain even a despotic power by some kind of popularity. It is
this power of the people that is working in Germany, and it is to gratify
this popular feeling, and to calm the excitement of the popular mind, that
the leading powers have opened the war. The rulers speak loudly for
peace, and say that if the obnoxious constitution were revoked which in­
corporates Schleswig with the Kingdom, making it a component part of
the Danish monarchy, then indeed they would adhere to the treaty of
London, and maintain unimpaired the integrity of Denmark. Yet the
best guarantees for the revocation of the constitution, possible in so short
a space of time, were given to Austria and Prussia, before they crossed the
Eyder. They asked King C hristian to do something he had no power
to do. To revoke the constitution he must assemble his Kigsdaag or Par­
liament, and ascertain through them the will of his people. All this re­
quires time. But Austria and Prussia grant no time. The) say, “ we
will not wait; you must comply at once, or we will declare war, enter
your territory and seize your provinces, because we are stronger than
you.” And so they have done, and on their shoulders do the Danish
people throw the responsibility.
The insults heaped upon the German nations by the first Napoleon,
had the effect of awakening a national spirit, and of arousing the people
to patriotic exertion. The remembrance of the time when a German
wielded the tremendous power of a united Empire, and Charles V. dictated
the law to that same France, which was now crushing them, excited long­
ings and aspirations, which unity among themselves alone could make
effective. How this unity could be brought about became a subject of
anxious consideration. One of the first things suggested was the creation
of a navy, belonging to no one kingdom or province, but carrying over
the high seas the Bag of a united Germany. This would be both a bond
of union and an element of strength. No sooner was the idea presented,
than it spread like wild fire; no one wished to be behind-hand in his sub­
scription to this patriotic purpose, and lectures were delivered in almost
all the towns, and the proceeds applied to build a German fleet. The
effort does riot appear, however, to have been remarkably successful, for
up to the present day Germany is deficient in ships.
But there was a serious obstacle in the way of Germany’s attaining
much maratime greatness. There is hardly another nation in the world
that possesses so large an area, and yet such a small extent of sea-board.
W hat little coast it has is poorly supplied with harbors, and the harbors
it possesses are either insignificant or commanded by the territory of
other powers. Their ports on the North and Baltic seas are guarded by
Denmark and Holland, and would be of little avail if these powers were
hostile—but with the Duchies firmly united to them the case would be
different, and the fine harbors in these coasts would be at the disposal of
the German fleet. “ Here,” says Denmark, “ is the key-note of the pop­
ular c ry ; this is the reason they are opening the war— they wish to get
possession of our harbors, to destroy us as a nation, and to make them­
selves a great naval power.” There is, doubtless, much truth in this.
The Austrian and German rulers, however, care little for German nation­
ality or a German fleet, they only want to get control of the Germanic
Confederation, and to obtain the highest place in the German Diet; yet
they have to bend to and partly obey the demands of their people. They




1864.]

The Dano-German War.

291

profess to stand on the treaty of London, which their subjects don’t care
for, and demand the revocation of the obnoxious constitution which they
know will not satisfy the popular will. And this brings us to consider
the second point, viz : that they acknowledge the obligations of the treaty,
but nevertheless try to please a people that will not be pleased so long as
the treaty stands.
The German people uphold the cause of the Duke of Augustenberg,
not merely because they believe his claim to be more valid, but also
because he is a German, and the duchies, under his rule, would be a part
of Germany. The aim of the popular German party has been constantly
to draw Schleswig nearer and nearer to Holstein, and as constantly to
widen the gulf which separates the duchies from the kingdom. They
have held since 1848, at least, that the fate of Schleswig is identical with
that of Holstein, and that Schleswig cannot be drawn nearer to Denmark
without influencing Holstein, nor Holstein be taken away from Denmark
unaccompanied by Schleswig. Indeed they would prefer to see both
Duchies drawn closer to Denmark than Schleswig alone, because the
German element which exists in Holstein would serve as a drag, prevent­
ing the dreaded incorporation of either duchy with the Danish monarchy.
“ Wherever,” they say, “ one duchy goes there must also the other go,
they cannot be separated, but must be joined more firmly together; a
like future awaits each—their fates are identical.” Their reason for
taking this ground is evident. They fear that Schleswig if left to itself
would soon be united to Denmark, and they believe that German-Holstein possesses more power to draw Schleswig towards the Bund, than
Schleswig can have to draw Holstein into the kingdom. They naturally
desire to see the German power extended, and they immediately raise the
cry of German nationality. But Austria and Prussia, as we said before,
care little for Germany as a nation. Their only desire is to get the
upper hand to receive the lion’s share in the distribution of power, and if
that is attained the rest may look out for itself. They were compelled
when they saw German feeling rising high to bow before it, and they took
their stand on the engagements of the treaty, and demanded the revoca­
tion of the constitution ; but the revocation of the constitution will not
satisfy their people. They long to tear the duchies from the dominion of
King C hristian , and to unite them to themselves. If the constitution
were revoked to-day, and Austria and Prussia should thereupon withdraw
from the contest, they would have to bear the contempt of their subjects.
These two great powers pretend to be zealous for the treaty, and draw the
sword ostensibly to uphold its requirements, but really to satisfy a people
that will not be satisfied, unless they do that which the treaty declares
shall not be done. How will they extricate themselves from the unfortu­
nate dilemma 2 '
So much for the plea of D enm ark; let us now see what Germany has
to say.
Upon the death of the late King of Denmark, the elder branch of the
family of Frederic II. became extinct, at least as far as its male represen­
tatives were concerned. It therefore became necessary, in accordance
with the requirements of the Salic law, to call upon the family of his
younger brother to supply the heir to the throne. It is Dot necessary to
examine the genealogy of the rival princes. No one attempts to deny
that the Duke of Augustenberg is the eldest male representative of the




292

The Dano-German War.

[April,

royal family ; and that the Prince of Glucksberg, the reigning king, be­
longs to a younger branch. It is evident then that, if the Salic law
remains in force, the present king has no rig h t; and that the Duke of
Augustenberg is the legal representative. But unfortunately, in the year
1660, at the same time ihat Denmark was changed from an elective to an
hereditary monarchy, the Lex Regia was passed. This law provides that
the female can inherit provided there is no male heir. When, therefore,
the late king died, the throne descended, through the female line, to
Prince Frederic of Hesse. He, however, withdrew his claim, and his
sister Mary did the same, and the Princess Louise, wife of the Prince of
Glucksburg, became queen. She also abdicated in favor of her husband,
and thus gave Prince Christian the kingdom. But although the Salic
law was abolished in Denmark, it does not follow that it was also abol­
ished in the Duchies. On the contrary, it holds there as strongly as ever;
and, although the Duke of Augustenberg may have his rivals, yet his
right is evidently superior to that of the king. The Duchies are all he
claims. His claim is upheld by the German people, and by the German
population of the Duchies themselves. He is the representative of Ger­
man feeling, because he is a German, and if he were Duke of SchleswigHolstein, then Schleswig-Holstein would be a part of Germany, and the
people would be united to their kinsfolk and friends.
But how is the treaty of London to be dealt with? Not only all the
great powers of Europe, but almost all the principalities of Germany,
promised to acknowledge the Prince of Glucksburg as king. Austria
and Prussia profess to be zealous for the treaty, yet they refuse to comply
with its requirements. It cannot be denied, that the present king came
to the throne in a very unfortunate time. It was when the obnoxious
constitution had passed its third reading, and only awaited his signature.
If he signed, he committed a grave offence against Germany; if he re­
fused, he outraged the feelings of his people. He did sign, and the con­
stitution became law. Here is the nominal offence. “ W e are not bound,”
say the German people, “ to see the Duchies drawn away closer to Den­
mark. W e promised to King Christian all’ the territories of the late
king; but he has no right to unite all his provinces into one kingdom.”
To prevent the dreaded incorporation from taking place, a Federal exe­
cution was ordered in Holstein, and that duchy was occupied by Saxon
soldiers. Soon Austria and Prussia, influenced by popular feeling,
and afraid of losing power in the Bund, also took up the quarrel and
sent troops forward. But this duchy could not be held alone. It must
not be severed from Schleswig. The German forces must cross the Eyder.
They did cross the Eyder ; and crossing the Eyder was war. “ And now,”
says Herr Von Bismark, “ we have a new state of things; a state of war.
W ar is a trial of strength. W e promised to give to Kifig Christian all
the territory of the late king. But war has altered the case. It has put
an end to the treaty, and we are free to act as we please.” Whether this
is sound political morality or not, we do not pretend to say; but certain
it is that an adherence to the treaty will not satisfy the German people,
and it seems almost equally certain that the great German powers will
not withdraw without endeavouring to satisfy them.
But there is another plan by which the German rulers endeavor to set
aside the unpleasant stipulations of 1852. They confess themselves bound
to recognize the integrity of Denmark, and hold that they do not depart




1864.J

The Dano- German War.

293

from that principle by the occupation of Schleswig. “ If however,” says
'a dispatch to the English government, “ in consequence of complications
which may be brought about, by the persistence of the Danish govern­
ment in its refusal to accomplish its promises of 1852, or of the armed
intervention of other powers in the Dano-German conflict, the king’s
government were to find itself compelled to renounce combinations, which
would no longer offer a result proportionate to the sacrifices, which events
might impose upon the German powers, no definite arrangements could
be made without the concurrence of the powers who signed the treaty of
London.” That is, if Denmark does not carry out her part of the treaty
and perform the stipulations—unfortunately very indefinitely expressed—
which in 1852 she promised to Germany; or if any interference on the
part of European powers should render a great war necessary, then we
will not perform’ our part of the obligations, but will take what we can to
pay the expense.of the war. Such is the reply of Germany. _The legal
question is one that cannot interest us very much, but it may bring on
great events._ To peer, however, into the thick darkness which surrounds
all coming events, and to state what is to be, is a more difficult matter.
So far Denmark has received no foreign assistance, but has been left to
bear the brunt of war alone. Will the other powers continue to sit
tamely by and see Germany rob Denmark, Or will they extend to the
weaker party something more than the mere expression of sympathy f
She has been driven back by her powerful enemies, and has been coin.pelled to abandon the strong fortress of the Danewerke. Still she is pre­
senting a plucky front, and is endeavoring to shame her English friends
into some active participation. If left to herself the issue cannot be
doubted, for she is unable to cope single-handed with her formidable
adversaries. But she does her best even in her solitary condition, and
keeps up a stout heart and hopes for better days. She evidently thinks
with Mr. M a k e T a p l e y , that only in adverse circumstances is there any
mgrit in beinu-jolly.
But our English friends do not appear exactly to enjoy the present
state of things. They do not want war, but neither do they want to sit
tamely by and see the annihilation of Denmark. They denounce in strong
language the aggressive spirit of Austria and Prussia, and thev have done
what they could to bring about a peaceful issue. But, alas! "their efforts
have not proved, nor are they likely to prove, successful. Should they
enter into the war, the whole of Europe would be in a blaze. Italy
would seize upon Venetia; France would grasp the Rhenish provinces;
and thus we should see England, France, Italy, and perhaps the Scandanavian kingdom, arrayed against the holy alliance: for Russia is said to
be uniting herself with Austria and Prussia, eager to have her finger in
the pie, and to receive her share of the spoils. Whether this shall be or
not probably remains with Napoleon to decide. He is the man that
governs Europe, and makes peace and war. The Invalids Rustle, the
official organ of the Czar, asks who is the head of the Polish revolution,
and answers itself by drawing a pen and ink sketch of Louis Napoleon,
who sits, it says, “ on a golden throne, and makes revolutions rise or
fall.” Such seems to be indeed the case; but as “ there is always a
power behind the throne,” so there is a controling influence in events to
which even Louis Napoleon will be forced to succumb. W hat this may
be time only can determine.
VOL. L.— NO. IV.




19

294

Death o f Thomas Tiieston.

DEATH

OF

THOMAS

[April,

T I L E S T ON.

On the morning of Monday, February 29th, we were startled by the
announcement of the sudden death of T homas T ileston—one of our
most enterprising, successful and best loved citizens.
W hen Mr. T ileston wrote his signature beneath the engraved portrait
which appeared in one of our late issues, it was with a smile of blameless
pride at the steadiness of the hand that had passed its allotted threescore
years and ten, yet still retained the unshaken firmness of early manhood.
To a human eye, looking at him thus in the midst of health and prosper­
ity, in unimpaired vigor of mind and body, there seemed to be still in
store for him, many long years of usefulness to others and happiness for
himself. B ut a fortnight had scarcely expired when the steadfast hand
was still and powerless; and the will that prompted it, the eye that
guided it, passed away from the earth for ever.
It is not possible, within a limited space, to estimate the full value of
such a life, with all its far-spreading influences, nor to mention the
innumerable regrets occasioned by its sudden ending.
In countless ways and places, the loss will be fe lt: by the fireside in a
desolate home; in an extended circle of strongly attached and apprecia­
tive friends; in numberless public enterprises and institutions. The firm
that has stood for forty-eight years, and that soon might have celebrated
its golden wedding-day of partnership, has met with a sudden and sor­
rowful dissolution. In the bank, the counting-house, the insurance
office, in commercial circles everywhere the wise voice will be missed,
and many will long to hear again the sage counsel now hushed in sound
slumber.
W e have already spoken in the sketch of Mr. T ileston ’s life, of the
many noted traits of his character; his wisdom, integrity, and judgment ;
his benevolence, his energy and discernment. Much more might indeed
be said upon these points, but we forbear, and allow the testimony to
stand as it was then written, for what was intended as a just tribute to
the virtues of the living, has now become Sacred to the Memory of the
Dead.
There is perhaps one quality of Mr. T ileston’s character which may
well be remarked upon, and this is the unusual combination of the legis­
lative and executive faculties. It has been said that men are divided into
two classes— the dreamers and the workers— those who think and those
who act, those who plan and those who execute. If this be not true as
an axiom, it surely may be considered true as a rule. There is of neces­
sity among men a diversity of gifts. A sculptor moulds into plaster the
perfect conception of his artist’s soul, but it is the accustomed fingers of
the handicraftsman, dexterous and flexile with long practice, that finally
evolve from the shapeless marble, a statue of such exquisite finish that the
world goes wild over its beauty. One general works out in theory a
magnificent campaign, admirable in its utmost details, wonderful in its
perfection as a whole ; another, powerless to originate, but strong to
execute, grasps the great idea, and rushes on to a victorious consumma­
tion. These diverse powers of invention and execution, dissimilar, and




1864.]

Death o f Thomas Tiles ton.

295

generally separate, were combined in an unusual degree in Mr. T ileston’s
character, and largely contributed to ensure the remarkable success which
attended all that he attempted. The best laid plans are but schemes and
visions, till a practical test proves their wisdom ; and the greatest execu­
tive faculty can hardly be expected so fully to adopt and carry out the
conception of another, as not to lose something of its original force or
delicacy. He, therefore, who can both theorize and perform, who can
first think out and then work out his own idea, has an advantage over
his fellows that must inevitably make him an eminently successful man.
The manner of Mr. T ile sto n ’ s death is too well known to require any
detailed statement here. It was excessively sudden. W ithout an instant’s
premonition, without a quiver of the strong hand, without even a quick­
ened breath to warn him, death seized the earthly tenement and let the
soul go free. It must ever be a consolation to those who best loved him,
that he was spared the pains and anxieties of a lingering illness, and that
they were saved the sight of long distress and weakness, which human
tenderness is sadly powerless to relieve. And yet, to every thinking
mind, there is a wonderful solemnity in such a sudden death. It forces
upon one a profound and overwhelming sense of the strange union and
still stranger parting of soul and body ; the eternal mystery of
“ The vase of clay, the earthy clod,
Constrained to hold the breath of God 1”

Breathed into it at birth, withdrawn at death ; and, between the two, a
short tumultuous passage, a rapid grasp of grief, joy, pain, and change,
that we call the life of man.
Happy is he who, in passing away, leaves only the remembrance of
worthy deeds to those about h im ; whose name evokes none but good
and kindly memories; whose life, like a goodly bark passed out of sight,
leaves behind it a glittering wake of beneficent influences to guide other
mariners into the desired haven. Yes, more than happy are all such,
they are blessed, for “ they rest from their labors, and their works do
follow them.”

PROCEEDINGS OF THE CHAMBER OF COMMERCE O JV THE DEATH OF THOMAS
TILESTOiV,

At the regular meeting of the Chamber of Commerce on the 8th of March, Mr. A
A. Low, after calling the meeting to order, spoke in a few earnest words of the
death of Me . T homas Tileston, and the great loss the city had thus suffered, referring
to the fact that Mr. T ileston had been a member of the Chamber since 1833. After
which Air. J ohn D. J ones, President of the Atlantic Mutual Insurance Company, in a
brief address paid a feeling tribute to his memory, and gave a very just estimate of
his character. In speaking of his unusual success, he said :
“ It was no one quality of mind that made him great in bis sphere, but a combina­
tion of many evenly balanced qualities, which gave him power to excel. His industry
knew no tiring; his energy seemed controlled by a will which was adequate to the
difficulty to be overcome; his sagacity and quick decision gave him great advantage
in mercantile transactions. His skill and foresight, adopting and entering upon plans
of enterprise and improvement, and his fidelity in pursuing his plans; his promptitude
and punctuality in performing his engagement; are rare qualities in the human mindj
* and the favorable results which are so well known have all shown their value.




298

Commercial Chronicle and Review.

[April,

11In liberal public spirit few excelled him. He was ready to take up any public
measure deemed by the Chamber necessary for consideration, and, regardless of his
own valuable time, gave it the necessary attention. His last duty was to act on a
committee upon the subject of ocean steam navigation; his last public act and address
before this Chamber upon the adoption of that report, delivered only a few days
before his death.
“ His courtesy and frankness of manner were remarkable, and his general discretion
very largely contributed to his success.
“ Mr. T ileston adorned every station he held in life; he added dignity to the position
of a merchant, and elevated the character of a banker. As a counsellor his clear
judgment was most valuable ; as a friend he was devoted and reliable.”
After listening to Mr. J ones address, the Chamber adopted the following resolu­
tions:
“ Resolved, That in his decease the mercantile community has lost an estimable
member, the young merchant a valuable friend, and the city of New York one of the
active supporters of its commercial greatness.
Resolved, That in our varied forms of intercourse with the lamented deceased, we
can all bear testimony to his industry, energy, sagacity and ability ; to the skill and
courage with which he foresaw or adopted and entered into well-considered and pro­
ductive plans of enterprise and improvement; to the promptitude, punctuality and
fidelity with which he pursued such plans and performed his engagements ; and to his
liberal public spirit.
Resolved, That after a long intimacy with him, we express with gratitut.e our
appreciation of his virtues as a citizen and friend, of his probity of character, and his
genial, social qualities.
Resolved, That the members of this Chamber attend his funeral and unite with his
numerous friends and acquaintances in attesting their respect for his memory.
Resolved, That a copy of the foregoing resolutions, duly authenticated by the officers
of the Chamber and seal, be transmitted to the family of the deceased.
After the adoption of the resolutions the Chamber adjourned, to attend in a body
the funeral of deceased.”

COMMERCIAL CHRONICLE AND REVIEW.
F IN A N C IA L A F F A IR S — L A W O F F E B R U A R Y , 1 S 6 2 — S IN K IN G F U N D - G O L D A C C U M U L A T IO N — B IL L T O S E L L
G O L D — R E L A T IV E

VALUE

OF

G O L D — P R I C E S — G O LD

O B J E C T 8 O F N E W B IL L — I T S D E F E A T — G O LD
T H E M O V E M E N T IN M A R C H — T W O Y E A R

IN

IN

THE

W O R L D — F O R E IG N

T R E A S U R Y — G O LD

N O T E S — IN C R E A S E

OF

COM M ERCE—

I N T E R E S T — N A TIO N A L

DEBT—

D E B T — R E S U L T S O F G O L D B IL L —

G O L D M O V E M E N T — E X C H A N G E — LOAN B IL L — N E W IS S U E S — S T O C K P R I C E S — IN V E S T M E N T S — M IN IN G
IN T E R E S T S — R E D U C E D C O S T — G E N E R A L B U S IN E S S — IM P O R T S — E X P O R T S .

T he commercial and financial affairs of the country has been a good deal dis.
turbed during the last month, by the proposed action of Congress in relation to
the disposition of the gold in the Treasury. The continued collections for custom
duties, which are payable in gold had caused an immense accumulation, and the
supply in the market was small—hence the amount on hand, and which under the
loan could apply only to interest on the sinking fund, came to be regarded with
uneasiness. The law of February 25, 1862, provided Section 5, as follows :
That all duties on imported goods shall be paid in coin, or in notes payable on
demand, therefor authorized to be issued, and by law receivable in payment of




I

1864.]

Commercial Chronicle and Review.

297

public dues, and the coin so paid shall be set apart as a special fund, and shall be
applied as follows:
First. To the payment in coin of the interest on the bonds and notes of the
United States.
Second. To the purchase or payment of one per centum of the entire debt of the
United States, to be made within each fiscal year after the first day of July, 1862,
the interest on which shall in like manner be applied to the purchase or payment
ot the public debt as the Secretary of the Treasury shall from time to time
direct.
Third. The residue thereof to be paid into the Treasury of the United States.
This solemn pledge of a “ special fund” was made in the law authorizing the
issue of $500,000,000 six per cent five-twenty year stock, all of which had been
issued or sold on that pledge as part of the condition of purchase. The custom
duties have been very large, and the amount of gold accumulated as follows :
S P E C IE IN N E W Y O R K C IT Y .

October
November
January
February
—
—
—
—

March
—
—
—

April

3 ............
1 ............
1............
1............
6 ............
13............
20............
27 ..........
6 ............
14............
19............ .
26............
2 ............

Price.

Treasury.

42
47
61
57
58
59
61
63
69
63
62
70
71

$9,081,843
9,586,970
12,880,599
15,618,231
17,118,941
18,562,456
19,083,565
20,675,021
22,318,101
23,752,515
25,118,578
26,655,022
26,535,204

Banks.

$30,064,614
28,783,281
25,161,935
24,203,632
24,070,791
23,521,453
22,523,968
22,301,687
21,220,658
20,750.495
21,059,512
20,425,604
19,526,665

Total.

$39,146,457
38,370,251
37,992,534
39,821,863
41,184,732
42,088,909
41,592,483
42,976,708
43,538,769
44,503,010
46,178,120
47,080,526
46,057,869

The amount held by the banks in October was estimated to belong, two thirds
to the banks themselves, and one-third to special depositors, importers and others
who had purchased to pay duties, and for other purposes. Under the process of
paying duties and of exporting the amount in bank ran down nearly $10,000,000
and that in the Treasury increased $16,000,000, after all the payments of interest,
November, January and February 19, and the price of specie in the market
regularly increased. Under these circumstances it was obviously the duty of the
Secretary under the law if he supposed the sum on hand would warrant it, to
buy the public debt for the sinking fund. The amount of the public debt is in
round number $1,600,000,000, hence one per cent is $16,000,000 which with the
accruing interest would supply the market and keep faith with the government
creditors. Instead of this, however, a bill was brought into the House author­
izing the Secretary to sell all the gold not wanted for the interest on the public
debt. In other words to do away with the sinking fund on the guarantee of
which the debt had been negotiated. This direct attack upon the public faith gave
rise to much discussion. The theory of the new bill was that the rise in gold
was due almost entirely to speculation, and that a few sales by the Secretary
would suffice to break that speculation, and greatly to reduce the price. This
theory was founded in the error that it is gold that has risen and not paper that
has fallen in value, whereas the fact is that gold has risen less than any other
article—all commodities are higher than gold. There are, of course, circumstan­
ces that affect prices besides currency. As taxes, transportation, supply and




298

Commercial Chronicle and Review.

[April,

demand. The imported goods bear a high rate of duty direct and also payable
in gold, and these affect prices. The articles formerly derived from the South
are in very short supply, in consequence of which the prices not only rise on those
commodities, but upon all kindred articles.
Let us leave out of the estimate then imported goods and materials supplied
by the South. Those articles that are more exclusively influenced by the cur­
rency are farm products. These are in more than usual supply, and pay no
taxes, but are affected by the high cost of labor of manufactured goods and of
transportation. The following will show how those prices have varied since
March, 1862, when the government legal-tender issues began :
P R IC E S

IN

NEW

"STORK IN M A R C H .

1862.
00 a 25 00
50 a 5 00
00 a !23 00
50 a 6 75
25 a 3 75
50 a 5 75
37 a 4 25
50 a 5 60
60 a 60 00
80 a
85
30 a 1 45
50 a 11 25
85 a 1 00
37 a
39
00 a :20 00
50 a 7 75
60 a
65
25 a
35
48 a
57
25 a 13 75
50 a 8 00
50 a 8 25
00 a 25 50
75 a 9 00
00 a 70 00
00 a 55 00
00 a 45 00
00 a 21 00
00 a 7 00

1864.
$41 00 a 42 50
9 00 a 10 00
48 00 a 49 00
11 75 a 12 00
6 00 a 6 25
8 75 a 8 87
6 50 a 7 00
7 30 a 7 35
131 00 a!34 00
1 85 a 1 40
I 63 a 1 65
14 00 a 16 12
9 35 a 1 50
90 a
91
26 00 a 33 00
12 50 a 13 25
1 25 a 1 35
58 a
60
1 10 a 1 12
21 75 a 23 50
10 00 a 15 00
13 59 a 14 00
89 00 a 91 00
12 62 a 12 75
150 00 al 55 00
78 00 a 82 00
70 00 a 75 00
36 00 a 37 00
15 00 a 18 00

Rise.
$18 00
4 50
27 00
6 25
2 75
3 25
3 12
1 90
72 50
55
33
3 50
60
53
12 00
5 00
65
83
62
8 50
4 50
6 00
64 00
O 87
82 00
26 00
26 00
20 00
10 00

412 67 a445 88

825 83 a871 12

413 15

Copper, 100 lbs.............................
Coal, ton........................................
Iron, pig, ton ................................
Lead, 100 lbs.................................
Nails, 100 lbs...............................
Ashes, pot, bbl................................
Dry Cod, cw t.................................
Flour, bbl........................................
Corn, 100 bush..............................
Hay, 100 lbs...................................
Wheat, bush................... ............. .
Hemp, cw t......................................
Barley, bush...................................
Oats, bush.......................................
Hops, 100 lbs.................................
Clover seeds, 100 lb s....................
Lime, bbl........................................
Oil, Whale, gal...............................
Oil, Coal..........................................
Pork, bbl .......................................
Beef, bbl.............. ........... ..
Lard, 100 lbs..................................
Whisky, 100 gals...........................
Tallow, 100 lbs..............................
Whalebone, 100 lbs..................... .
Wool, fleece, 100 lbs......................
Wool, pl’d, 100 lbs.........................
Butter, 100 lbs..............................
Cheese, 100 lbs..............................

Paper Money outstanding..................

60,000,000

600,000,000.

The rise has effected every article, and the average aggregates will compare as
follows:
,
Gold.

March, 1862.....................................
March, 1863.......................................
March, 1864......................................

101J
154
159

A ggregate
Articles.

429 27
727 12
848 57

Rise
per ceat.

TT. S. paper
currency.

..
70
98

$60,000,000
320,000,000
600,000,000

I t is here evident that the rise in gold is far less than in other commodities,
the metal having risen but fifty-nine per cent, and the average of twenty-nine
articles is ninety-eight per cent, and those are articles not directly acted upon
by the rise in gold. It is also evident that if this level of prices is maintained




1864.]

Commercial Chronicle and Review.

299

in paper value, while gold is forcibly depressed, an immense amount of the over­
valued article must be imported from Canada and elsewhere.
If now we make a table of imported articles or those the prices of which are
effected by higher duties and those! in gold and also by exchange, we will have still
higher prices, as follows :
1862.
1864
1863.
18 00 a 18 50
Cordage, Manilla...................
9 00 a 10 00
19 00 a 20 00
Indigo....................................
2 00 a 2 85
1 25 a 2 50
1 60 a 2 60
Coffee, Rio, 100 lbs.................
30 50 a 34 00
36 00 a 37 50
17 25 a 19 50
48 a
50
India Rubber..........................
85 a
83 a
85
87
16 00 a 16 75
Gunny Cloth, 100 yards........
11 00 a 11 50
15 50 a 15 76
80 00 a 31 00
Hides, Rio. 100 lbs................
21 00 a 21 50
29 60 a 30 00
Plaster of Paris.....................
1 50 a 1 75
3 60 a 3 75
3 25 a 3 60
Leather, Oat. Mid..................
27 00 a 30 00
40 00 a 42 00
45 00 a 47 00
Mahogany ............................
45 00 a 55 00
100 oo al50 00
35 00 a 45 00
Molasses, No. gall..................
45 a
70 a
80
50 a
55
47
Silk, raw .................................
10 00 a 10 60
9 50 a 9 75
5 00 a 5 50
45 00 a 46 00
62 50 a 65 00
Carria, 100 lbs ......................
31 00 a 32 50
Gin..........................................
55 00 a 56 00
103 00 allO 00
26 00 a 27 00
9 25 a 11 50
12 25 a 14 75
Sugar, Cuba, 100 lbs............
6 87 a 8 75
Tin, boxes,..............................
66 00 a 58 00
66 00 a 57 00
30 00 a 82 00
12 60 a 13 00
Spelter....................................
9 00 a 9 37
5 50 a 5 70
$228 35 a254 25
Gold.

March, 1862........................
March, 1863.... ..................
March, 1864........................

101^
164
159

$370 55a396 56

29 articles . Rise per
cent.
above.
429 27
70
727 12
98
848 67

$516 13 a577 00
Sixteen
imported.
241 30
383 85
546 56

Rise per
cent.
60
130

Thus while farm produce has risen ninety-eight per cent, imported articles not
directly influenced by the scarcity of raw materials have risen one hundred and
thirty per cent, while gold had risen only fifty-nine per cent. These facts show
conclusively that the rise in gold is only an index. The apparent value of gold
depends entirely upon the volumn of irredeemable paper money afloat, in relation
to the markets of the whole world. In a work published in Paris, and of high
authority, by Mr. E d . M. L evasseur , the quantity of precious metals in civilized
countries in 1858 was given as follows :
Silver................................................................
Gold.............................. ................................

fr.22,000,000,000 or $4,125,000,000
fr.13,000,000,000 or $2,442,500,000

Modern commerce, through the quick agency of steam, equalizes the value of
this vast sum to a fraction of one per cent all over the world. In every country,
all known commodities bear exact proportions in gold, and in every country
myriads of merchants are eagerly watching a variation in order to profit by it,
by sending commodities for gold where it is too cheap, and sending gold for com­
modities where it is too dear. The idea of altering the value by selling a com­
paratively few handfuls of gold in New York, is novel. The rise and fall of
paper is another matter, and is governed by putting more or less of it afloat.
The world at large does not sympathize with it, and it falls in value where there
is an excess.
The moment paper becomes the medium of exchange the commerce of the
country becomes complicated with its depreciation. Every foreign merchant
and every home dealer is required to reduce the paper price to its equivalent in
gold, to ascertain the relative sales of commodities, and each promptly avails




300

Commercial Chronicle and Review.

[April,

himself of the change. If the volume of paper has produced a certain currency
level of prices, these are calculated at what the circulating medium may be turned
into gold for. If the government or any other agency then steps in and forcibly
depresses the value of gold, it simply gives a bonus to the importer. Thus, sup'
pose the above sixteen imported articles are represented by the value two hun­
dred and forty-one dollars when gold was at par, and now by five hundred and
forty-six dollars in paper. If the importer could still get the gold for the paper
at par, his profits would be 130 per cent, and the country would be flooded with
goods, yet this is what the Secretary and Chairman of Ways and Means poposed
to do. They proposed to break down the price of gold and let other articles
stand. The object was defeated. The bill could finally pass only in the shape of
permitting the Secretary to sell the gold not wanted for the interest. The bill will
be found elsewhere.
•
It would appear that all the interest and sinking fund are preserved, and conse.
quently the law now stands •in effect as before, “ The entire debt ” is sixteen
hundred millions, consequently one per cent is sixteen millions. Mr. S herm an ,
in the Senate on the 10th, gave an ofiicial statement of the debt bearing gold in­
terest at $717,277,512 55, as follows :
Due April 1....................................................................................
Due May 1..........................
Due July 1....................................................................................

$3,152,711 22
14,245,141 .33
3,451,347 37

Total.....................................................................................
Add 1 per cent sinking fund..........................................................

$20,849,199 92
1(1,000,000 00

Total due to July 1..............................................................
In Treasury, March 10...................... ............................................

$36,849,199 92
19,670,479 91

Deficit...................................................................................

$17,178,720 01

Mr. S herman stated that there was more gold in the Treasury, but not avail­
able, being special funds. He also stated the estimated receipts of gold from
March 10th to July 1 at $22,272,175. This, if realized, would ’meet the deficit
and give a surplus of $5,094,000 to be sold. This is the whole scope of the bill,
with the exception that the Secretary may pay interest in advance on such terms
as he can bargain for.
The last named power does not appear to be very available. To advance the
interest on the public debt involves may grave considerations. Thus the Secre­
tary has it in his power, if he has the gold, to pay to-morrow the coupons due on
$510,000,000 five-twenty six per cent stock up to next November. Let us
suppose that he- does so—that the holder of a $1,000 bond consents to take off
his two coupons and get the gold to-day. Having received the gold for interest
Bay sixty dollars, worth ninety-six dollars in currency, he then holds a bond that
will draw no interest for more than a year. This bond he would not be likely to
hold, but to sell and reinvest the money where it would gain interest, in which
case the price of the stock may become very low, the more so if after the coupons
are paid there should be a decline in customs. The effect would be to shake
out the whole funded debt from its place of investment, making it a floating,
speculative stock, and be highly detrimental to the national credit. These ob­
jections do not apply to the disbursement of gold in stock purchased for a sink­




1864.]

301

Commercial Chronicle and Review.

ing fund, and it is to be hoped this will now be done if the Secretary is sure of
gold enough to meet the whole year’s interest.
It is, however, a very serious question whether it would be advisable to pay
out the gold for any purpose since all past experiences show that the customs
cannot be depended upon absolutely for a year’s revenue. After a year or two
of prosperity they are very likely to break down and leave the government with­
out the necessary revenue until a return of prosperity. The national debt is now
as follows:
U N IT E D S T A T E S D E B T .

4 per cent Treasury Loan........
5 per cent Treasury L o a n ....
Temporary Loan, coin..............
Past due treasury Notes........
Suspended reqs ...................

Feb. 2.

$1,526,092 07
30,293,404 34
9,547 00
13,000 00
21,375,060 27

March 2.

$1,037,392
40,188,919
4,450
164,160
7,830,817

March 15

39
46
00
00
00

Temporary liabilities............... $53,217,203 68
$48,725,728 68
Old public debt.........................
67,221,591 10
67,447,412 55
Three year 7-30 Bonds............ 139,536,450 0 0 - 138,772,300 00
IT. S. N...................................... 450,785,004 60 449,119,548 10
Fractional Currency.................
18,246,290 15
13,745,720 15
20 Year Loan of 1861..............
50,000,000 00
50,000,000 00
20 Year Bonds E .................................................
1,227,000 00
1 Year Treasury Notes.........................................
6,860 05
2 Year Treasury Notes............
50,000,000 00
95,502,031 22
Oregon W . Debt.......................
1,016,000 00
1,016,000 00
Certificate of Indebtedness.. . . 137,980,950 00
136,121,650 00
6 per cent 5-20 Bonds........... 503,005,178 51
510,165,446 92

$943,692 22
47,207,545 38
4,450 00
143,300 00
46,971,278 45
$95,270,22605
67,447,41255
138.063,80000
449,073,61660
19,173,32015
5 0 ,00 0 ,0 0 0 00
1,935,500 00
14.600,000 00
115,581,41403
1,016,00000
131,098,00000
510,740,10000

Total................................$1,473,225,714 35 1,513,702,837 62 1,596,999,429 38
Less amount in Treasury.. . .
4,033,064 69
9,411,795 27
16,797,655 14
Total, March 1, 1864,............. $1,469,192,649 66 1,513,291,042 35 1,580,201,774 24

This presents a very interesting chart of the Treasury movements. In the
first fifteen days of March it appears $7,000,000 have been deposited at five per
cent with the Treasury under five per cent temporary loan head. There have
been issued $400,000 fractional notes; $9,000,000 one year legal tender, and
$20,000,000 of two year legal-teDder; making an increase of $29,400,000 in
floating paper, or very nearly $2,000,000 per day. A t the same time the “ sus­
pended requisitions” have increased $39,640,461.45. These probably embrace
the army pay due on the first of March.
The seven-thirty notes decreased it appears $708,748, and the twenty-year
bonds increased $708,500, showing the conversion of the former into the latter
under this law.
The means of the department in that fifteen days were then as follows :
Received on Deposit, 5 per cent...........................................................
One year legal tender notes issued ................. ...................................
Two year legal tender notes issued......................................................
Fractional currency............................ ’...................................................

$7,018,628
8,740,000
20,079,383
427,600

Total means............................................................................................
Unpaid requisitions................................................................................

$36,265,609
30,640,416

Total increase, 15 dayB........................................................ .

$75,903,025

Almost the sol e dependence for this expenditure were, it appears, the legal-




802

Commercial Chronicle and Review.

[April,

tender notes, of which the two-year issues were stopped by the following order,
thus leaving the one year notes alone to meet the daily wants of fully two mil­
lions per day:
T reasury of the U nited S tates, )
W ashington, Tuesday, March 14.
j

Subscriptions having been received for the total amount of two-year five per
cent Treasury notes with coupons attached, which it is proposed to issue, you
will please receive no deposits on account of such notes after the receipt of this
notice.
P. E. S pinner, Treasurer U. S.
There were then issued some new two year notes bearing interest five per cent
payable at the maturity of the note. On the 25th of March a new loan was
offered under the law of March 3, 1864, being a five per cent 10-40 year stock.
I t appears from the above statement of debt that the amount which bears
gold interest is $764,202,812, and the annual interest is $45,852,168. The
largest amount ever obtained from the customs was last year $69,059,642. In
1858 the amount was $48,000,000. The increase of the public debt has been as
follows:
July 1, 1862..............................................
“ 1,1863..............................................
Sept. 30, 1863...........................................
March 15, 1864.........................................

D ebt.

$508,526,499
1,098,793,181
1,222,113,559
1,580,201,774

Increase per day.

.
$1,617,300
1,370,200
2,157,150

The appropriations for the year beginning July 1 are over $1,300,000,000 and
the present laws authorize $1,100,000,000 of gold interest debt. Hence the ex­
pense of the next seven months are likely to be as much as for the last six months,
viz : $2,157,150 per day, which will give an increase of $453,001,500 in the debt,
and this must be derived either from more paper or gold interest debt. In the
latter case $27,000,000 will be added to.the gold interest, and four and a half
million to the sinking fund, making a demand within the next twelve months of
$85,000,000 for gold, which is not likely to be derived from customs. In this
view it is clearly not prudent to sell any gold now on hand. The Secretary,
however, has caused the following notice to be issued.
U nited S tates T reasury, N ew Y ork, March 23, 1654.
By direction of the Secretary of the Treasury, notice is hereby given that until
further orders I will issue to importers, for payment of duties on goods imported
by them, certificates of deposit of gold coin, to the credit of the Collector of any
port as desired, in exchange for notes, at a quarter of one per centum below the
current market value of gold.
These certificates are not assignable, but will be receivable by the Collector
from the party to whom they are issued.
J. J . Cisco.
Assistant Treasurer of the United States.
No.----United States Treasury, New York,-----------------1864.
I certify that------------------------- has this day deposited to the credit of the
Collector of the port of New York $ ----------- in gold coin. This certificate
is receivable only for duties on imports from 'the party to whom it is issued, and
upon his indorsement.
-------- ------------- — Assistant Treasurer.
$ -------------------This threw a vast responsibility upon the Assistant Secretary, but the unlim­
ited confidence that the public justly have in Mr. Cisco took away from the
measure the distrust that might otherwise have attached to it. As a result the




303

Commercial Chronicle and Review.

1864.]

movement after overcoming the difficulties of fixing a marked value, was merely
to stop the purchase of gold for customs for a few weeks. The gold movement
was as follows :
S P E C IE

Jan.

2 ....
9 ___
16 . . . .
2 3 ___
3 0 ___
Feb. 6 ----1 3 ___
2 0 ___
27 . . . .
March5 . . . .
1 2 ___
1 9 ___
2 6 ___

AND

*--------- 1£ SG3.--------- ,
Exported.
Received.
681,448
726,746
1,277,788
1,380,247
678,841
780,817
1,331,027
301,860 1,277,000
359,987 1,152,846
520,017
285,394 1,377,016
733,643
1,243,551
3,540,560
249,514 1,201,907
159,105 1,050,156

T o ta l... 4,556,031 15,753,420

P E IO E OF

Received.
254,239
279,801
365,608
324,864
363,198
407,657
512,358
281,304
376,101
3,163,630

GOLD.

------------IS 164.----------Exported. Gold in bank.
590,262 25,161,935
1,216,204 25,122,002
1,985,057 24,884,264
1,000,000 24,631,204
668,747 24,203,632
662,616 24,070,191
1,219,808 23,521,453
325,632 22,523,918
531,700 22,301,687
629,803 21,220,658
465,920 20,750,495
83,881 21,059,512
273,900 20,425,504

’rein. ongold.
514 a 52
51J a 52
52* a 664
56 a 58
564 a . • •
59§ a . • •
694 a . . •
61 a . • •
594 a 61
61 a 62
62 a 69
62 a 624
694 a 704

9,653,660

In the last week in March the prices had risen under the demands accumulated
from a long delay. The issue of the circular above quoted, however, caused a
deduction to 165 on the 28th, which again rallied to 1714 in the first week in
April. The circumstances that affected gold also had an influence upon exchange,
and the market for bills was generally below the corresponding gold rate, as
follows:
RATES

J a n . 2,
it
9,
ii 16,
« 23,
tc 30,

Feb. 6,
“

a

M
M a r.

((

U

K

13,
20,
27,
5,
12,
19,
26,

OF E X C H A N G E .

Paris.
Amsterdam.
London.
166 a 1664 8 .3 8 4 a 3.344 624 a 63
1664 a 1674 3.3 8 4 a 3.40 624 a 63
169j a 170J 3 .30 a 3.324 64 a 644
170 a 171 3.31 a 3.33 644 a 644
171 a 172 8.324 a 3.284 644 a 6*4
174 a 175 3.264 a 3 .2 3 f 654 a 664
173 a 1744 3.274 a 3.234 65 a 654
1724 a 174 8 274 a 3 .2 3 f 654 a 654
1734 a 174 27264 a 3.22 654 a 654
1744 a 175J 3.25 a 3.214 654 a 664
177 a 178 3.16 a 3.184 66 a 664
176 a 177 3.224 a 3.184 654 a 664
1794 a 182 3.15 a 3.10 6 7 | a 684

Frankfort.
624 a 634
624 a 634
644 a 644
644 a 65
644 a 65
654 a 66
654 a 654
654 a 654
654 a 66
66 a 664
67 a 674
66 a 664
68 a 684

Hamburg.
554 a 56
554 a 564
564 a 574
564 a 57
574 a 574
58 a 584
584 a 58-4
584 a 584
584 a 584
584 a 59
59 a 594
584 a 59
604 a 61

Berlin.
1104 a 111
110-4 a 111
1124 a 1134
1124 a 113f
1134 a i n
115 a l l 6
1154 a 1164
1154 a 116
1154 a 1164
116 a 117
1174 a 118
116 a 117
120 a 1214

In another column will be found the supplemental bill passed for the issue of
a new loan by the department. The original bill authorized the loan at 10-40
years, not less than six per cent. The new law authorized it at 5-40 years, but
the stock was put upon the market at 10 40 year five per cent stock. The first
day, March 26, §875,000 were subscribed, the second day $130,000, and the
third $430,000, when the national banks were authorized to receive subscriptions.
The price of the government stocks were as follows :
P R I C E S U N IT E D S T A T E S P A P E R .

Ja n u a ry
ii
ti

2..........
9..........
1 6 ,..........




.—6’s, 1881.—»
7 3-10,
Coup. 5’s, 1874. 3 years.
Keg.
105*
96
106*
1054
96
1664
1054
96
1064

1 year certil.
Old.
New.
101*
97£
102
974
1024
974

Gold.
1 5 1 4 a 151f
152 a 1524
155

a 1554

304

,—6’s, 1881.— ,
Reg.

23,.........
(( 80..........
February 6 .........
“
13,.........
« 20, .........
((
27,.........
March
6,.......
(t
12, ........
(4
19..........
M 26,.........

[April,

Commercial Chronicle and Review.
73-10,

5’s, 1874.
107
97
106
100
107} 100
109} 100

Coup.

110
110}
111
112
112}
112}

100
100
100
100
100
100

3 years.
107
107}
108
109}

111
111
111
110}
110}
111}

1 year certii.

Old.

103

102}
102}
103
103
103
103}
103
103
103

New.
97
97}
98}
98}
99}
99}
99}
99}
99}
99}

G o ld .

156 a
156}a
159} a
159} a
159f a
159} a
161}a
162}a
162 a
169} a

158
156}
159}
159}
161
161
161}
162}
162}
179

The six per cent 5-20 stock payable in twelve years are quoted with the accu­
mulated interest at 109}, which bears a premium of 106 net price, and with
gold at 170, this is equal to 63 specie price, at which the stock pays 11 per
cent interest, and is therefore better for the buyer than the five per cent at 100.
Investments ran very heavy in stocks, but the rise in gold caused some fluctu­
ation, and there was apparent a growing demand to invest in substantial prop­
erty like mines. Hence attention was turned to the mineral wealth of the
west, causing its development to be pushed with great vigor under growing im­
provements that make gold and silver production constantly less expensive.
Governor E vans of Colorado, in his annual message, remarks :
“ The improvement in the modes of saving gold from the ores of our mines that
have been made during the past year have given a new impulse to our mining
operations. By these new processes ores that paid but twenty-five dollars per
ton by the old process, are readily made to yield one hundred dollars per ton,
while many varieties produce much more largely, and this without greatly in­
creasing the expenses.”
The improvements here alluded to are as well chemical as mechanical, and are
some of them very curious. Thus the gold in the quartz is associated with iron
pyrites ; it is held very tenaciously, as if combined itself with the sulphur always
present. The old plan, after drawing off the sulphur, was to pulverize very fine
and then apply quicksilver, which united with all the gold free, forming a paste
which, exposed to heat, lost the quicksilver in vapor, leaving the gold pure. By
this process much gold was lost because it adhered to the pyrites and passed off
in the tailings. A new process of roasting at a certain heat drives off the sul­
phur without adding to the cohesion of the pyrites or causing the gold to vola­
tilize. This process increases the produce threefold. In other cases, where the
ores are finely pulverized, the gold becomes so fine as to float in the air, thus
escaping the quicksilver. This difficulty has been met by heating the quicksilver
into vapor inclosed in a cylinder, into which the dust penetrates. The vapor
thus fixes the floating particles of gold, and the yield has been raised in the pro­
portion of two to five. There are numerous other contrivances that produce
vast results.
In addition to this is the application of capital to the mechanical improvement
of the operations. Thus the veins crop out on the hills and are worked down
one hundred to two hundred feet each in a separate shaft—the product being
greater as the depth increases. The Atlantic and Pacific Gold and Silver Mining
Company have seven of these shafts that yield largely of silver. The Quarz
Hill Company veins give gold. The former company embracing the most
responsible and sagacious capitalists organized a large capital with




1864.]

Commercial Chronicle and Review.

305

which to drive a tnnnel into the side of the hill tapping all the veins, and causing
the ore to descend instead of being lifted. The results are so immense frem
these new applications of capital that $25,000,000 so employed in one region
draws $1,000,000 in gold, or four per cent per month interest. The Mexican
Pacific Company is now being organized to prosecute operations on the Pacific
coast of Mexico under grants from the Mexican Government to 185f square miles
of land. This is an important enterprise, and the substantial names composing
the board of directors are a guarantee of its soundness.
These are vast results in gold income from capital investment, and they have
stimulated great exertions in the same direction. With great success, aided by
the improvements we have mentioned, they have also given color to a cloud of
bogus companies, representing old, abandoned worthless claims, and got up to
sell. The unwary will be severely bitten with many of them, while great results
will flow from judicious investments in sound companies. The effect that these
developments must have upon the future prosperity of the country is obvious.
Indeed next to direct support to the Treasury there is no more important na­
tional object than working the mineral wealth.
The general business has been held in abeyance by the idea that gold would
be sold from the Treasury to depress the price and that goods might be lower,
a large importation of goods took place however as follows :
IM P O R T S ,

PORT O P

NEW

VORK.

Specie.

----------- Entered for---------- ,
Free goods. Consumption. Warehouse.

J a n u a r y ..................
F e b ru a ry ...............

$141,790
88,150

$841,050 $12,422,648 $5,571,936
797,788 15,766,601 4,991,398

T o ta l..................
“
1863__
“
1 8 6 2 ....

$229,940
315,877
225,665

$1,638,838 $28,189,249 $10,563,334 $40,621,332
3,197,210 16,113,766
8,140,569 27,767,422
5,933,528 13,821,570
6,512,211 26,492,969

Total.

$18,977,395
21,643,937

The importations for the month of February exceeded those of January, and
were much in excess of those of last year—while the quantity of goods in ware­
house diminished to a considerable extent.
EXPORTS, PORT

Specie.

OF

NEW

VORK.

/---------F oreign.--------- *
F ree .
D utiable.

Jan.......................
F e b ..................

$5,459,079
3,015,367

$42,232
77,698

$664,485
456,493

T otal.............
“ 1863...
“ 1862...

$8,474,446
8.590,238
6,435,193

$119,930 $1,120,978
117,000 1,278,284
76,259
358,250

D omestic.

Total.

$11,443,953
13,662,218

$17,609,749
17,211,776

$25,106,171
32,109,984
22,131,578

$34,821,525
42,095,506
29,001,280

The exports of the month were much less than for the same month
last year. The value of merchandise was $14,196,409, whicht a the
average price of specie realize in bills $9,120,000 making with the
specie a value equal to $12,135,000 with which to meet a specie value of
$21,643,937 of imports—showing a deficit of near nine and a half mil­
lions. This was brought about to some extent through the influence of the gold
bill agitation, which spread the belief that there would be a fall in gold, that
would favor importation and discourage exportation. The natural effect would
be a fall in price.




306

Journal o f Banking, Currency, and Finance.

[April,

JOURNAL OF BANKING, CURRENCY, AND FINANCE.

B A N K IN G M O V E M E N T S IN T H E U N IT E D S T A T E S — LONDON M O N EY M A R K E T — B A N K O F E N G L A N D , E T C .
B A N K OF F R A N C E — BA N K O F M E X IC O — N E W LO A N A C T — T H E A C T A L L O W IN G T R E A S U R E R T O

D IS ­

PO SE OF G O LD .

BANKING MOVEMENTS IN THE UNITED STATES.
T he bank movement of the three cities, the last three months, is of much
interest in a. general way, since it has been marked, as during the previous month,
by symptoms of collision between the new system called into being by the Na­
tional Banking Law, and by the workings of the five per cent interest bearing
legal-tender notes paid out by the Government.
Our readers will, doubtless, bear in mind the loan made by the associated
banks to the Government on the 5th of September, the details of which we have
published in full in former numbers. ■That loan bore six per cent interest, and
was not paid until the year 1864, when the banks received $50,600,000 of legaltender notes, drawing five per cent interest from the 1st of December, 1863.
These notes, it was supposed, would be taken up as an investment, and not act
directly upon the markets as currency. A very little experience, however, showed
that this view was erroneous. A t the time they were paid to the banks money was
worth seven or eight per cent; and the one year six per cent certificates of indebt­
edness of the Government were selling at ninety-seven cents per dollar. It is
evident that, as the new notes in their character of legal-tender'could be paid away
for certificates that would give nine per cent interest, they could not be held for
the sake of five per cent interest they bore. They were, therefore, freely paid
out by the banks as currency. The government, at the same time, emitted others
to meet its daily wants, and in doing so, stamped the notes with the dates of
emission in order that they should draw interest only from the date of emission.
The notes so uttered were received and paid out freely by the Treasury, and the
banks without reference to the interest. This large supply of currency, added to
the influx from the country on the commencement of the spring trade, caused the
deposits in the banks to increase to a great extent as will be seen in the table of
the weekly returns hereto annexed.
It is the custom of the banks in making those returns to include all that draws
interest under the head of “ loans.” Hence, when in September they advanced to
the Government $50,000,000 the loans were swollen by the amount. But when
the Government paid off the loan in interest, bearing legal-tender, as that paper
was more currency than investment, it did not appear among the loans. The
accumulation of money, however, soon exceeded the demand, and the price o
money fell from eight to five per cent. The interest bearing legal-tender there,
fore became available with their accumulated interest as an investment. The
peculiarity of the paper is, however, that in order to realize the interest it must
be held until June 1, whereas if they were deposited with the Treasurer for five
per cent deposit certificates, these would be available with interest at ten days




1864.]

Journal o f Banking, Currency, and Finance.

307

notice. Therefore, when money became cheap in February, the banks deposited
them to the extent of nearly $10,000,000 with the Treasury.
A new element here came into action. The national banks had multiplied to
an extent that forced their circulation, with its privileges and peculiarities, upon
the public attention. There are now two hundred and seventy-eight National
banks organized, with a capital of $33,042,000. Eight million dollars of the
new National currency in fives and tens have been issued to one hundred and
seventy-eight banks. Of the new banks, ten are in the city of New York. All
the circulating notes issued by the National Banks are a legal-tender between
the Government and the people, although not among the people, and any National
Bank may put out the notes of any others. Thus, a New York bank may pay
ont the notes of an Oregon or New Orleans bank, and the latter may pay out
New York bank notes, while the Government pay all of them out anywhere.
That is the notes received in New York for taxes may be paid in the west or
elsewhere. Inasmuch as the notes of the National Banks are redeemable in
greenbacks only at the place of issue, a very little management will render it a
perfectly inconvertible currency. This is a serious matter, the possible conse­
quences of which must be guarded against by solvent institutions. For this re­
ason, therefore, the associated banks agreed that they would not receive notes of,
or checks upon, National Banks that were not redeemed and guaranteed by an as.
sociated bank. This determination was reached February 29th, at a meeting of
bank officers, held at the American Exchange Bank, at which thirty-five of the
city banks wTere represented. We give the following resolutions passed at that
meeting, only the last two of which, however, refers to this subject.
Resolved, That the resolutions adopted at the meetings of the Clearing-House
Association, held on the 7th of March, and the 23d of April, 1862, authorizing
the use of the temporary loan certificates of deposit, issued by J ohn J . C isco ,
Esq., assistant treasurer of the United States, as a medium for the settlement of
balances at the Clearing-House, to the extent of forty million of dollars, be now
rescinded, and that all such United States temporary loan certificates, heretofore
known as Clearing-House certificates, which are held and reported by the banks
on the morning of the first day of March proximo, may be used at the ClearingHouse for the settlement of balances until the first day of April next, but not after
that date.
Resolved, That if any bank, member of the Clearing-House Association, shall
elect to hold such United States temporary loan Clearing-House certificates, after
the first day of April next, that they shall continue to report the amount of such
certificates so held, to the Clearing-House daily, until the morning of the third
day of May next, that being the date when the next payment of interest will be­
come due thereon; and the interest upon the certificates so held and reported,
together with the interest upon such certificates previously held and reported,
shall be paid to such banks as heretofore, by the chairman of the Clearing-House
committee, and the manager of the Clearing-House; but that after said third day
of May next the interest accruing upon such certificates shall be collected from
the government by the banks holuing the same.
Resolved, That the Loan-Committee be authorized to receive any United States
five per cent legal-tender treasury notes that may be deposited with them by any
bank, member of the Clearing-House Association, and to issue therefor loan certi­
ficates, equal to the amount of such deposit, in certificates of one, five, or ten
thousand dollars, as may be desired by the bank making such deposit.
Resolved, That such certificates shall bear interest at the rate of five per centum
per annum, payable monthly on the first day of each month after their issue, and
until they shall have been returned to the Loan-Committee and exchanged for the




308

Journal o f Banking, Currency, and Finance.

[April,

five per cent United States legal-tender treasury notes upon deposit of which they
were issued.
Resolved, That the loan certificates issued as provided by the preceding reso­
lutions may be used in the settlement of balances at the Clearing-House until the
6th day of June next.
Resolved, That a statement of the amount of the United States five per cent
temporary loan (Clearing-House) certificates, and the amount of loan certificates
held on the morning of each day before the commencement of business, shall be
made to the Loan-Committee daily, at or before 11 o’clock, A. M.
On motion of the President of the Manhattan Company, J. M. Morison, E sq.,
it was unanimously
Resolved, That Messrs. C. P. L everich, G eorge S. Coe, J. D. V ermilye,
R. H. L owry, and H. L. J aques. who, as a Loan-Committee of the associated
banks, for several months past, have had the management of the arrangements
connected with the loan made by the banks to the United States on the 8th of
September last, and who have discharged and completed the very important
business referred to them in the most satisfactory manner, be respectfully and
earnestly requested to continue to act as Loan-Committee, on behalf of the banks,
until the arrangements for the issue of loan certificates which have been made by
this meeting shall have been completed.
After some discussion the following resolutions were then unanimously adopted,
• \
Tiz.:
Resolved, That the banks composing the Clearing-House Association agree
to receive from their customers at par the notes of all such National Banks a*
are guaranteed to be redeemed at par in lawful money of the United Stales by any
bank member of the New York Clearing-House Association, and that all Na­
tional Bank notes that are not so redeemed shall be considered and treated as
uncurrent money.
Resolved, That we will receive on deposit certified checks on such National
Banks in this city, as are redeemed through the Clearing-House, by any bank
member of that association. Provided, that such member shall first engage, by
notice given to every other bank member of the association, that it will be re­
sponsible for such checks to the extent required by the provision of the constitu­
tion of the Clearing-House Association.
On motion, the proceedings of the meeting were ordered to be printed, and a
copy thereof sent to each of the banks, and the secretary was directed to request
the banks not represented at the meeting to assent to its proceedings and unite
therein.
The meeting then adjourned.
Moses T aylor, Esq., acted as Chairman, and G eorge D. L yman, Esq,, as
Secretary.
These resolutions look to a permanent policy, but practically at present the
national circulation is to the associated banks of little importance since it is
eagerly sought after by Government to pay troops. The $467,00-0,000 green­
backs which have been already issued are mostly of large denominations, a fact
growing out of the extreme haste in which each issue has been got out. They
were prepared only when the Treasury was under the pressure of immense
arrears, and therefore notes of large denominations only were printed. The notes
of old banks are not receivable by the Treasury. When, therefore, the troops
are to be paid a great want of small notes is experienced. To meet this want
there is a constant and urgent demand by the Treasury for all the National
Bank notes. There is, therefore, no difficulty on the part of the banks at present
in receiving the national notes and turning them into the Treasury. This will be
the case as long as the Government continues to borrow $2,000,000 per day, and




1864.]

Journal o f Banking, Currency, and Finance.

309

refuses old bank notes. When this borrowing process shall cease, and the
national issues shall approach their limit of $226,000,000, and the issuers begin
to find difficulty in keeping them out, the danger will begin to show itself. The
necessity of keeping out the notes on the part of needy issuers will lead to the
usual practices for the purpose, and the above resolutions adopted by the old
banks will be a safeguard. This, however, and some other evils of the new sys­
tem, are likely to be corrected. A committee of bank officers was appointed to
proceed to Washington, and obtain some modifications of the law, particularly
in relation to placing government deposits in new banks, and compelling the new
banks to keep an agent for the redemption of their notes at the business centre.
Also a change of the regulation of the department which seeks to force every
bank to adopt a numeral instead of a name. These suggestions have been adopt­
ed by the Comptroller of the currency, and the Committee of the House have
in accordance therewith, reported in substance the following amendments to the
general law :
National Banks arc to be required to redeem their circulating notes in the
city of New York at a small discount. A uniform rate of interest (seven per
cent) is to be established throughout the United States for National Banks.
The lawful money reserve that is to be kept on hand is to be reduced from
twenty-five to fifteen per cent for country banks, and from twenty-five to.twenty
per cent for city banks.
Provision is also made for the closing of banks whenever the owners of twothirds of the capital stock shall deem it expedient. Banks cannot be organized
with a less capital than $100,000 in the country and $200,000 in the cities. It
will be made imperative that an amount of bonds equal to one-third of the capital
stock paid up shall be kept on deposit with the Treasurer of the United States,
whether banks take circulation lor them or not.
While these propositions in Congress look to the modification of the National
loan, an act has been introduced into the State Legislature to the following
effect :
S ection 1. Provides that any bank association, corporation, or individual, in­
corporated by or under the laws of this State at the time of the passage of the
act of Congress, February 25,1863, may, at any time within two years after the
passage of the act, become an association under the provision of said act of
Congress, provided that two-thirds of the capital stock consent thereto, and that
the cashier shall publish notice thereof in some newspaper published in city or
county where such banking association is located for ^at least thirty days, and
send a similar notice to the Banking Department of the State.
S ection 2. Provides that nothing contained in this act shall be so construed
as to exempt the shares from taxation under the laws of this State.
S ection 3. Provides that nothing ordered herein shall be understood as releas­
ing such associations from their obligations to pay and discharge all the liabili­
ties incurred before becoming such association, and they shall be continued as
bodies corporate for the term of three years, to enable them to close their con­
cerns.
The facility of obtaining the use of the public deposits has been a stimulant to
the new banks. This privilege has, however, operated singularly to the disad­
vantage of the Treasury as we stated last month. The law which permits the
deposit of funds with the Treasury in exchange for five per cent certificates
lays down no limitation, neither does the law allow the public money to be de­
posited with the national banks contain any restrictions as to the application of
those funds. Hence, it has occurred that the public money has been transferred
VOL. L.--- NO. IV.




20

310

Journal o f Banking, Currency, and Finance.

[A p ril,

from the Treasury, its national custodian, into the keeping of National Banks, and
they, at a time when money could not amply be employed in the open market,
have re-deposited it with the Treasury in exchange for five per cent certificates,
thus drawing five per cent interest on the public money without giving any ser­
vice therefor.
In the meantime, the amount of business for either new or old banks to do is far
less than in ordinary times, since mercantile dealings are so generally for cash.
The large amount of individual notes usually created on the sale of goods is not
now called into being. The immense amount of drafts and interest paper that
formerly grew out of the movement of crops, particularly cotton, and which formed
the legitimate object of banking operations, have now meanwhile ceased to exist,
and the largest proportion of the bank funds are employed in government securi­
ties. This is true as well of the old banks as the new. Hence the prospect of
any large legitimate banking business seems to be out of the question for the
present, and it is precisely at such a moment that the banking capital of.the coun­
try is doubled. Both systems draw, their profits from the manipulation of the gov ernment funds, and the future, therefore, holds out for them but a gloomy pros­
pect. The difficulties of a return on the part of either system to specie pay­
ments wjll be very great. The new banks provided by the Government are not
required even to pay specie, and have no need ever to provide for it. The banks
are called into being and granted certain power, one of which is to issue paper
redeemable in “ greenbacks.”
And so, too, the notes of the old banks are equally redeemable in greenbacks.
But the chief difficulty in the way of specie redemption arises from the fact that
the assets of both, now created by them, are at values created by the legal-tender,
the withdrawal of which would sink all one-half. Some prudent banks have,
therefore, thought that there was but one alternative for them. They may keep
their capitals on hand in gold, or they may wind up and go into liquidation,
while yet legal-tenders are serviceable for the discharge of obligations. The
latter involves the power of a corporation in prosperous circumstances to wind
up its affairs, a question which we understand is in course of investigation by
legal authority.
The redemption of specie payments by the New York banks in 1838, is not
a parallel to the present circumstances, because the suspension was but a year,
and the banks steadily prepared for it. There was also no intermediate legaltender between the notes and specie. When they gradually contracted their issues
they brought values down to the specie level without convulsions. . The United
States Bank did not do so, it attempted to prolong suspension, and was finally
a total loss with some $200,000,000 of bank capital that followed its policy.
The Bank of England, after the French war, was seven years preparing for it by
contraction, and thus reducing prices, so that resumption was possible in 1821,
and there was then no intermediate legal-tender to get rid of. We have now out
and in course of issue $1,000,000,000 of legal-tender, all of which must be paid
off by taxation, or funded into a specie stock before specie payments can be
thought of. There will remain $400,000,000 bank notes, new and old, that must
be reduced full one half before specie payment can be resumed. In other words
$1,200,000 of debt must be paid before we can get down to the specie level.
The inflation of values that now constitute a part of the bank assets is very




1864.]

,

,

Journal o f Banicing Currency and Finance.

311

manifest in the column of clearings given in the weekly bank statement. These
have swollen to an immense extent. In the year 1861, the whole amount of
clearings for the year was $5,915,742,758. This sum is equal to nine weeks of
the present rate. In other words, the rate of clearings now is 29,000 millions
per annum. The following are the bank returns for the three cities brought
down to the latest dates.
N EW YORK BANKS..

N ew Y ork B anks . {Capital, Jan., 1864, $ -

Date.

January
“
u

a
“

February
U

'*

March
((

M

April

2 ,..
9 ,..
16,..
2 3 ,..
3 0 ,..
6 ,..
13,..
2 0 ,..
2 7 ,..
5 ,..
12,..
19,..
2 6 ,..
2 ,..

Loans.
Specie.
Circulation. Het Deposits. Clearings.
$174,714,465 $25,161,935 $6,103,331 $140,250,856 $300,763,147
173,009,701 25,122,002 6,032,546 134,861,977 387,546,217
165,991,170 23,S84,264 6,008,182 130,311,046 416,962,806
162,925,880 24,077,513 5,049,807 130,136,203 460,811,543
162,296,896 24,203,632 5,913,558 130,665,415 427,306,608
163;076,846 24,070,791 5,974,762 133,849,042 425,430,985
165,090,329 23,521,453 5,916,707 140,464,616 467.751.745
168,302,935 22,523,918 5,908,394 148,014,106 514,887,411
174,928,205 22,301,687 5,907,851 154,875,059 575,442,304
182,317,378 21,188,034 5,937,167 158,999,668 518,951,433
189,757,746 20,750,405 5,918,807 168,044,977 688,822,273
198,229,513 21,059,542 5,889,197 169,637,975 618,338,858
199,372,437 20,425,504 5,514,139 168,315,904 576,253,989
203,993,131 19,526,666’ 6,708,908 171,151,297 676.372.745
BOSTON BANKS.

B o st o n B a n k s .

Date.

{Capital, Jan., 1863, $38,231,700 ; Jan., 1862, $38,281,700.)

Loans.

Specie.

Circulation.

Deposits.

Due
to banks.

Due
from banks.

Jan. 4 ,.. $76,805,343 $7,503,889 $9,625,043 $32,625,679 $12,831,000 '
11,..
18...
2 5 ,..
Feb 1 ,..
U
8 ,..
U
15,..
u
2 2 ,..
41
2 9 ,..
Mar. 7 ,..
“ 14,..
«c 2 1 ,..
u 28,..
April 4 ,..
((

it

77,747,734 7,531,195 10,185,615 31,524,185 12,703,600 11,019,000
75,877,427 7,464,511 9,963,389 31,151,240 12,041,000 11,769,000
74,146,000 7,440,000 9,729,000 30,893,000 11,106,700 12,227,000
73,959,175 7,385,413 9,660,163 30,655,782 10,825,000 11,854,500
71,765,122 7,265,104 9,579,020 30,030,292 11,315,000 12,272,000
71,088,849 7,224,924 9,741,471 30,412,647 11,615,000 13,448,000
71,074,000 7,215,500 9,411,000 31,831,000 11,329,600 14,925,400
72,189,003 7,179,310 9,371,440 33,155,888 12,224,603 16,189,724
72,687,363 7,108,519 9,606,318 33,688,017 12,313,829 16,535,992
72,105,111 7,052,181 9,490,311 33,891,204 12,704,181 17,315,231
73,207,121 7,033,721 9,548,211 35,090,181 13,092,531 17,266,741
73,485,514 7,016,086 9,210,096 84,859,508 13,352,706 17,071,732
71,838,506 6,856,708 9,442,082 32,861,609 13,601,005 15,786,091
PH IL A D E L PH IA BANKS.

P h il a d e l p h ia B a n k s .

Date.

Jan. 4 ,..
“ 11,..
“
“

18,..
2 5 ,..

Feb. 1...

“

«
“
“

8,..

1 5 ,..
2 2 ,..
2 9 ,..

Mar. 7 ,..
“

14,..

“

21,..

“

2 9 ,..

April 4 ,..

{Capital, Jim .,1863, $11,740,080; 1862,$11 ,970,130.)

Due
Duo
Specie. Circulation . Deposits.
to banks. from banka.
Loans.’
$35,698,808 $4,168,585 $2,055,811 $29,878,92o $4,316,763 $2,963,563
35,458,967 4,158,235 2,050,891 30,484,227 4,001,473 2,814,188
34,896,842 4,158,125 2,044,427 31,194,851 4,330,120 3,063,148
34,849,959 4,103,065 2,047,846 32,354,253 3,500,693 2,905,921
34,345,126 4,108,109 2,056,532 32,027,147 3,453,431 3,271,306
34.146.677 4,102,671 2,066,069 31,033,030 4,080,059 2,461,873
34,590,880 4,102,748 2,069,061 29,911,704 4.322,609 2,080,750
36,059,676 4,102,588 2,119,488 30,783,741 4,463,751 2,099,778
35,519,704 4,102,848 2,167,348 31,435,753 4,837,264 2.114.227
35,913,334 4,102,632 2,208,492 31.712,547 5,323,316 2,116,042
35.956.678 4,099,707 2,308,250 32,511,405 5,508,146 2,333,819
36,412,923 4,099,664 2,340,132 32,835,038 6,933,974 2.428.227
36,695,415 4,096,401 2,357,768 33,156,496 5,791,191 2,724,935
37,262,220 4,095,495 2,390,092 84,404,607 5,641,638 3,425,805




312

Journal o f Banking, Currency, and Finance.

[April,

LONDON MONEY MARKET— BANK OP ENGLAND, 4C.

course of events in Europe has produced singular fluctuations in the
course of the banks of both France and England, causing a rapid rise and fall
in the rates of interest. A t the date of our last number, the rate had been 8
per cent, and it has since been reduced to 6 per cent, although the causes of the
advance still remain in active operation, and will soon,in all probability, induce
a return to as high, if not higher, rates. These causes are mainly, as we have
stated many times before, the results of our war, which, withdrawing from the
markets of the world a value of cotton equal to $200,000,000 per annum, threw
upon distant and chiefly new sources of supply, a demand which they have been
enabled to supply only at greatly advanced prices. The amount of money which
Europe has been required to pay for that raw material is indicated in the fol­
lowing table, the values imported into Great Britain for each of the last three
T he

1861 .............
1862 ............
1863 .............

E. Indies.
£9,459,656
22,042,437
27,180,111

Brazil.
£690,100
1,676,741
1,911,005

Egypt.
Other countries.
Total.
£1,546,897
£386,445 £12,082,998
3,723,440
2,429,150
29,871,768
7,601,211
8,510,121
45,202,448

Thus, India has drawn $135,000,000, Egypt $38,000,000, and new countries
$40,000,000. I t has been the case, as usual with all new enforced business, that
specie only is taken in payment for this vast amount of cotton; and of specie
silver has been the chief article in demand, for the reason that in India, on
account of certain religious and superstitious ideas, as well as long habits, tnat
metal is the favorite. The following exports of the metals have resulted from
Great Britain :
E X P O R T S O F S P E C IE

1862 .................................
1863 .................................

E. Indies.
£12,629,830
12,289,430

FROM

GREAT

Brazil.
£452,392
1,731,037

B R IT A IN .

Other countries.
Total.
£16,243,969 £29,326,191
12,528,573
26,544,040

This large movement could not, as a matter of course, take place without caus­
ing a severe drain upon the banking resources, and to an extent which required
great caution on the part of the banks.
But besides this drain, by reason of the cotton purchases, there have been
other causes at work which have helped to disturb the European money market.
During the first three years of the war an immense decrease took place in the
amount of money employed in the manufacturing business, as a consequence of
the diminished supply of the raw material. On this account money became very
abundant, and the more so because all over the world there were held overstocks
of manufactured goods, which suddenly rose in value and were remitted home in
greater profits. That circumstance caused money to be more abundant, and
counteracted to some extent the new demand for cotton. It has, however, now
nearly ceased, leaving the full weight of a growing demand for cotton to fall
upon the exchanges.
Meantime, the abundance of money in England caused it to seek new channels
for employment, and an immense number of new commercial enterprises were
projected to operate with British capital in all quarters of the world. This
sudden home abundance of capital gave an impulse to events that have long been
in course of development. It is evident, siuce the general peace of 1815, that
the nations of Western Europe and North America, by developing manufactur­




1864.]

Journal o f Banking, Currency, and Finance.

313

ing industry to a marvelous extent, each surpassing the other in some peculiar­
ities of natural resources or mechanical aptitude, were rapidly reaching a point
where international intercourse would be restricted by similarity of productions;
for, when the surplus products of each nation should come to closely resemble
each other, interchange would cease. Hence the trade of agricultural or tropical
countries has become more and more important to the great manufacturers who
require supplies of raw materials on the best terras, while at the same time they
seek more extended markets for their products. Intercourse with the United
States has been maintained by the ever increasing supplies of materials and food
which have been furnished hence to the manufacturers of England and Europe.
The working up of the materials thus obtained has largely employed the capital
of England.
A t the same time rail-roads, the telegraph, steam, the attractions of gold and
other circumstances, have prepared the way for more extended knowledge of remote
countries, and have supplied the means of reaching them regularly and promptly,
while they have called forth a more migratory spirit among all nations. The
newly opened countries have presented capabilities that attracted the enterpris­
ing, but the means of employing and rightly directing local labor have been
wanting. The great international exhibitions, which have been furnished with
samples of the products of all quarters of the world, have given a spur to a new
class of enterprises.
When the American blockade cut off the supplies of cotton, rice and tobacco,
a large capital in England was thrown out of employment, and money became
there, as we have said, very cheap. A t the same time the necessities of the case
impelled the greatest exertions to find supplies of cotton elsewhere, and all coun­
tries likely to supply cotton were ransacked without much success. Out of this
necessity, however, has grown a more extended action. The cheap capital of
England has been forming itself into companies for the development of tropical
productions in the most remote quarters. India is, at present, the object of most
of the enterprises, but the West Indies are also attracting attention. The large
capital flowing from London over the most distant countries, carries with it a
germinating power destined to cause broad streams of increasing wealth to flow
back into the warehouses of Great Britain and the world.
Among the numerous joint stock associations which are in England daily
being announced, in order to take advantage of the ease of the money market, it
is highly satisfactory to find that a considerable number of useful undertakings
have been projected. Banks, railways and hotel companies have long received
an undue share of the floating capital seeking investment. But the far-off fields
of culture, where, with careful management and proper supervision, large remun­
erative returns might be obtained with a small outlay of capital, now take their
places.
This class of companies will soon occupy an important position in the English
stock market; but, whatever may be result to the stockholders, it is very evident
that the markets of the world will soon feel the effects of the increased produc­
tion of all that class of productions ; and with the restoration of peace, a broader
foundation for commercial enterprise and wealth will be found to exist, and can­
not but act favorably upon the future of America.




314

Journal of Banking, Currency, and Finance.

[April,

I t is here evident how much the forced withdrawal of capital from American
cotton trade has fostered other and remote British interests, making very large
demands upon capital.
I t is not only in their distant enterprises, however, that capital has sought
new employment. The greatest development has been given to joint-stock bank­
ing in and around London. I t is known that the Bank of England has the sole
right to issue notes within an area of sixty miles round London, but banks of de­
posit multiply without much limit, doing business with the notes supplied by
that bank. Ten years back the number of London joint-stock banks was six, and
the total deposits only about £22,000,000. The present list includes the busi­
ness of two old established private banks,—-Messrs H eywood and Messrs H ankey, who have amalgamated with the Consolidated Bank, the deposits of which
amount to £4,006,558,—but with this exception it is not believed that the
amounts in private hands have been diminished. On the contrary, they are
understood to have steadily increased, like those in the joint-stock banks, so that
the augmented figures now exhibited with respect to the latter may be accepted
as a simple illustration of the rapid development of the commercial and financial
powers of the country. As regards the Bank of England, the deposits held ten
years ago was about £14,300,000, and it is now £20,140,000
Banks.

Year
Subscribed
Established. Capital.

Paid-up
Capital.

Deposits.

London <&Westminster .. 1834 £5,000,000 £1,000,000 £15,629,094
London J oint-Stock........... 1836
600,000 14,056,731
3,000,000
Union Bank of London__ 1839
3,000,000 *780,000 16,472,278
London and County......... 1839
600,600
9,634,638
1,600,000
C ity ..................
1855
1,000,000 417,820
3,525,975
Bank of London............... 1855
300,000 4,179,294
600,000
Metropolitan and Pro­
vincial (Limited)........... 1861
200,000
784,108
1,000,000
Alliance Bank of London
2,788,093
and Liverpool (Lim.). .1862
3,000,000 595,745
1,000,000
199,950
606,439
Imperial (Limited)........... 1862
697,628
4,006,568
Consolidated (Lim ited).. .1863
1,494,070
75,320
English & Irish (Limited ..1863
502,200
256,485
London <fe South-West­
68,125
152,618
387,500
ern (Limited)................. 1863
Total

21,483,770 6,424,588

Dividend
Guarantee per An.
Fund, f'.Cent.
£275,953 SO
279,679 20i
110,000 15
100,000 18
130,000 12
112,000 16
6,000

5

54,000
3,000
20,000
nil.

6
5
m

nil.

71,792,311 1,090,532

...

This large amount of deposits, of over $350,000,000, in the London JointStock Banks, in addition to $100,000,000 in the Bank of England, and
$250,000,000 in private banks, makes the vast sum of $700,000,000 on deposit
in London.
It is not a matter of surprise that this vast amount seeks an outlet in profit,
able employment elsewhere, but, at the same time, the sending it out of the
country involves an export of coin, which is the basis of all values. The only
mode in which that export of coin may be checked is by raising the value of
money, and directing the measure against those interests which are most nearly
allied to the export movement. Under these circumstances, where such a vast
volume of capital is to be guided, the fluctuation is great. I f the flow of a rivu­
let is checked its waters may rise a few feet in a few days; if the Hudson river*
* £3 per share added to the reserved profits amounting to £180,000.




1864.]

315

Journal o f Banking, Currency, and Finance.

is darned its waters may rise twenty feet in an hour. Thus, in England, the
volume of the capital is very large, and not only that, but the facility of com­
munication has brought all the capital of Europe into prompt sympathy with
the London market. If the rate rises to 8 per cent, the telegraph carries the
news to every point of Europe, even to India, in an hour, and trom every avail­
able point capital seeks the new rate, while the English out-flow stops. The
accumulation is rapid, and the rate promptly drops, only, however, to rise again
with the fact of cheap money. The Bank of England returns are as follows
Date.

Dec.
“
“
“
“
Jan.
“
“
“
Feb.
“
“
“

Circulation.

2 ,... 21,685,732
9 ,... 20,801,207
1 6 ,... 20,382,764
2 3 ,... 20,273,799
3 0 ,... 20,686.538
6, ’64 21,322,804
13 ,... 21,396,420
2 0 ,... 21,445,793
2 7 ,... 20,876,825
3 ,... 21,162,626
1 0 ,... 20,708,113
1 7 ,... 20,696,172
2 4 ,... 20,207,871

Public
Deposits.

Private '
Deposits.

7,234,894 12,924,545
8,629,856 12,981,276
9,103,738 13,265,068
10,266,546 12,711,637
10,841,991 13,021,212
10,001,982 13,052,604
5,264,097 15,411,794
5,689,074 13,879,877
6,337,246 13,406,627
6,748,867 13,372,981
7,254,682 12,882,226
7,079,789 13,306,156
8,153,601 12,426,673

Securities.

Coin and
Bullion.

31,980,889
32,622,659
32,803,049
32,270,286
33,438,154
33,486,952
31,726,575
31,445,860
31,017,449
31,436,334
36,923,317
31,078,328
30,504,827

13,048,475
13,008,617
13,675,474
14,217,067
14,362,605
14,196,754
11,708,597
12,974,109
13,022,220
13,303,243
13,472,271
13,583,635
13,819,412

Rate o f
Discount*

8 per cfc.
8 <(

7
7
7
7
7

44

8
8
8

44

44
44

44

“
44

44

7 <4
7 44
6 44
A t the close of February, the diminished bullion demand for India, and the
easier state of the money market in Paris, partly consequent on the recent issue
of $10,000,000 in 50f notes, led to a reduction in the inquiry. In face of the in­
creasing resources of the bank, the directors had no option but to lower the rate
of discount, which now stands at 6 per cent. The constant though moderate
addition to the stock of bullion, and the gradual strengthening of the reserve, had
induced most persons to expect this alteration, and to reserve for the lower rate
the bills they desired to discount. There has been, therefore, rather more busi­
ness since Thursday, although the supply is ample for all present wants. On the
best bills, the outside rate is perhaps | below the terms of the bank, and there is
in some quarters the usual sanguine disposition to look forward to still cheaper
money, now that the course of the stream in the opposite direction has been so
far arrested.
B ank of F rance .—The general circumstances of the cotton trade which have
borne so heavily upon the English Banks have been no less burdensome to those
of France, heightened in some degree by the political condition of Europe, which
has, as is usually the case in times of disturbance, promoted hoarding of the
metals. The general circumstances of the case have induced M. L eon S ay to
suggest to the French Government that a Commission should be appointed to
inquire into the present monetary crisis. M. F e l ix V er n e s , whose name is well
known in the banking world, writes to the Journal des Debals to combat the
proposition, on the ground that the cause of the crisis is perfectly well known,—
namely, the large exports of the precious metals to pay for cotton in India and
Egypt. M . V ernes says, moreover, that the crisis is not peculiar to France,
but common to all Europe, and that in France there is but one remedy for it—
the augmentation of the rate of discount of the Bank of France. The Journal
des Debats, however, in opposition to M. V e r n e s , insists that an inquiry is
desirable, and it suggests that it should be made as searching and complete as




316

Journal o f Banking, Currency, and Finance.

[April,

those which are from time to time instituted by Committees of the English Par­
liament. It also recommends that it should comprise the question of a plurality
of banks.
This latter question relates particularly to the Bank of Savoy, which claims
to have the right of issuing notes in France like the Bank of France, while the
Bank of France contends for a monopoly of the right. This question is, there­
fore, pending before the tribunal of public opinion, and excites great interest on
account of its intrinsic importance, and also because it is supposed to have some
bearing on the existing monetary crisis. It involves a scientific problem, which,
though solved in England and the United States, is still far from decided in
France,—namely, whether monopoly or liberty is the better; and the solution of
it will not only be of great general importance, financially and commercially, but
will affect more or less the interests of very powerful individuals. In the discus­
sions to which it has given rise, some of the most eminent men in the economic
and banking circles of France have taken p a rt: M. M ichel C h ev a l ier , M.
I saac P e r e ir e , M. E mile P e e e ir e , M. d ’E ichthal , M. W olowski, and M.
L eon S a y ; and even the Minister of Finance, M. F ould , has raised his voice
in the matter. M. M ich el C h ev a lier takes the liberal view of the question.
Iu a recent article in the Journal des Debats, he put the matter very tersely :—
“ If,” said he, “ the question be treated in an economic point of view, I want to
know how an aristocratic monopoly can be defended when France is democratic ?
If it be treated in an economic point of view, I want to know how liberty
can be refused in banking when it is established in everything else? ” As an
answer to M. M ich el C h ev a lier , one of the defenders of the Bank of France
presents in a daily newspaper extracts from the works of Rossi and L eon F auch er , in which plurality of banks of issue is condemned.
Meantime, the condition of the Bank of France, the resources of which had
run very low under the outward drain, caused much uneasiness. The bank had
refrained from raising the rate of interest by reason of the Government loan
pending.
The loan restored the means of the bank to some extent, and the institution
promoted the abundance of money during a temporary check in the demand for
specie for India, by issuing 810,000,000 in 50f. or §10 notes. The last two
monthly returns of the institution were as follows :
BANK OF FRANCE.

Loan 8.

Specie.

Circulation.

Deposits. Interest

January —fr.751,649,983 fr.169,027,010 fr.813,490,825 fr.159,797,667 7
160,110,225 7
February— 705,516,796
775,096.775
182,573,888
March — 642,135,993
746,610,375
195,994,738
142,925,719 6
B ank of M exico .—Certain eminent French bankers and capitalists have not
only resolved on starting a bank in Mexico, but have even obtained a provisional
concession from General Almonte as chief of Regency, and they count on the
support of the new Government about to be set up in that country, and also on
encouragement from the French Government. The formation of a Mexican
Bank is, regard being had to the peculiar situation of Mexico, one of those pro­
jects in which French and English capitalists can co-operate with great advant­
age. There is, however, in London a proposition for a new and rival bank,
which, at the present juncture, would be a misfortune.




I

1864.]

Journal o f Banking, Currency, and Finance.

317

THE LOAN ACT OF MARCH, 1864.

W e give below an official copy of the new loan act, and also the resolution
passed authorizing the Treasurer to dispose of gold.
[ P ublic —No. 15.]
“ An Act supplementary to an act entitled ‘ An act to provide ways and means
for the support of the Government,’ approved March third, eighteen hundred
and sixty-three.
"Be it enacted by the Senate and House of Representatives of the United Slates of
America in Congress assembled, That, in lieu of so much of the loan authorized
by the act of March third, eighteen hundred and sixty-three, to which this is
supplementary, the Secretary of the Treasury is authorized to borrow, from time
to time, on the credit of the United States, not exceeding two hundred millions
of dollars during the current fiscal year, and to prepare and issue therefor coupon
or registered bonds of the United States, bearing date March first, eighteen
hundred and sixty-four, or any subsequent period, redeemable at the pleasure of
the Government after any period not less than five years, and payable at any
period not more than forty years from date [in coin] and of such denominations
as may be found expedient, not less than fifty dollars, bearing interest not exceed­
ing six per centum a year, payable on bonds not over hundred dollars annually,
and on all other bonds semi-annually, in coin : and he may dispose of such bonds
at any time, on such terms as he may deem most advisable, for lawful money of
the United States, or, at his discretion, for Treasury notes, certificates of indebt­
edness, or certificates of deposit, issued under any act of Congress; and all bonds
issued under this act shall be exempt from taxation by or under State or munici­
pal authority.. And the Secretary of the Treasury shall pay the necessary ex­
penses of the preparation, issue, and disposal of such bonds out of any money in
the Treasury not otherwise appropriated, but the amount so paid shall not
exceed one-half per centum of the amount of the bonds so issued and disposed of.
“ Sec. 2. And be it further enacted, That the Secretary of the Treasury is here­
by authorized to issue to persons subscribed on or before the twenty-first day of
January, eighteen hundred and sixty-four, for bonds redeemable after five years
and payable twenty years from date, and have paid into the treasury the amount
of their subscriptions, the bonds by them respectfully subscribed for, not exceed­
ing eleven millions of dollars, notwithstanding that such subscriptions may be in
excess of five hundred millions of dollars; and the bonds so issued shall have the
same force and effect as if issued under the provisions of the act to *authorize the
issue of United States notes and for other purposes,’ approved February twentysix, eighteen hundred and sixty-two.
“ Approved, March 3, 1864.”
RESOLUTION AUTHORIZING SECRETARY OF TREASURY TO DISPOSE OF GOLD.

[P ublic R esolution —No. 18.]
“ Joint resolution to authorize the Secretary of the Treasury to anticipate the
payment of interest on the public debt, and for other purposes.
“ Be it resolved by the Senate and House of Representatives of the United States of
America in Congress assembled, That the Secretary of the Treasury be author­




318

S ta tistics o f Trade and Commerce.

ized to anticipate the payment of interest on the public debt, by a period not
exceeding one year, from time to time, either with or without a rebate of interest
upon the coupons, as to him may seem expedient; and he is hereby authorized
to dispose of any gold in the Treasury of the United States not necessary for the
payment of interest of the public debt: Provided, That the obligation to create
the sinking fund according to the act of February twenty-fifth, eighteen hundred
and sixty-two, shall not be impaired thereby.
“Approved, March 17,1864.”

STATISTICS OF TRADE AND COMMERCE.
FLOUR

AN D

GRAIN

FOR

1861.

RECEIPTS AND SHIPMENTS AT CHICAGO, OSWEGO, DETROIT, BUFFALO, ALBANY
AND MONTREAL, AND IMPORTS INTO GREAT BRITAIN.

T he past year shows diminished receipts of flour and grain at nearly all
points. This is owing in part to the diminished foreign demand for our breadstuffs, and in part, also, to the damage the new crop of corn received by frost,
making the receipts of corn since September 1st very light. Oats have com­
manded so high a price as to increase the quantities sent forward.
CHICAGO.

The following tables show the receipts and shipments of flour and grain in
Chicago during the past four year :
TOTAL RE CEIPTS OF FLOUR AND GRAIN FO R FOUR YEARS.

1860.

Wheat, bu......................... 14,668,429
Corn, bu............................. 16,487,9«6
2,029,906
Oats, bu..............................
Rye, bu..............................
295,436
Barley, b u ..........................
623,005

1861.

1862.

17,689,909
26,543,233
1,883,258
479,005
417,129

13,728,116
29,449,328
4,138,722
1,038,825
872,053

1863.

11,180,344
26,450,508
9,189,525
839,760
1,098,346

T o tal...........................
Add flour into wheat.

33,004,742
3,600,030

46,862,534
7,230,865

49,227,044
8,331,953

48,708,483
7,371,420

Total........................

36,504,776

64,093,219

57,558,999

56,079,903

The following table shows the shipments of flour and grain for four years
p ast:
TOTAL SHIPM ENTS OF FLOUR AND GRAIN FROM CHICAGO FOR FOUR YEARS.

Wheat, bu..........................
Corn, bu..............................
Oats, bu..............................
Rye, bu...............................
Barley, bu..........................

1860.

1861.

1862.

1863.

12,487,684
13,743,172
1,039,799
129,156
290,211

15,788,385
24,186,382
1,655,384
422,492
185,293

13,808,898
29,452,610
3,112,366
871,796
532,195

9,341,881
24,444,147
7,574,994
835,133
668,735

42,237,936
7,125,445

47,777,865
8,699.245

42,864,890
7,683,455

49,363,881

56,477,110

60,548,345

Total........................... 27,690,002
Add flour into wheat, 3,566,695
Total.......................

31,256,697

The following table shows the shipments of all kinds of grain from Chicago
for the past twenty-six years :




1864.]

S ta tistics o f Trade and Commerce.

319

SHIPM ENTS OF FLOUR (REDUCED TO W HEA T) * GRAIN, FROM CHICAGO FOR TW ENTY-SIX YEARS.

Years.
1838.........
1839.........
1840.........
1841.........
1842.........
1843.........
1844.........
1845.........
1846.........
1847.........
1848.........
1849.........
1850.........
1851.........
1852.........
1853.........
1854.........
1855.........
1856.........
1857.........
1858.........
1859.........
1860.........
1861.........
1 8 6 2 . .. ..
1863.........

Com, bu.
....

Wheat, bu.

Oats, bu.

, ,,,
....

Brl’y, bu.

....
....

,...

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

923,494

Rye, bu.

__

67,135
38,892
566,460
65,280
644,848
26,849
262,013
186,054
3,221,317
605,827
2,757,011 2,030,317
2,780.253 1,748,493
6,837,899 3,239,987
7,547,678 1,888,533
11,129,658 1,014,547
6,814,615
816,778
7,493,212 1,498,134
4,217,654 1,174,177
13,743,172 1,039,779
24,186,382 1,655,384
29,451,610 3,112.666
24,444,147 7,574,994
OSWEGO.

....
.....

....
....
....
....
•. • •
31.453
22,872
19,997
127,028
120,275
148,421
92,032
19,051
17,993
127,008
478,162
129,156
422.492
871,796
835,133

...

....

....

....
17,315
82,162
41,153
20,132
590

....

7,569
131,449
290,211
185,293
532,195
668,735

Total bu.
78
8,678
10,000
40,000
586,907
688,907
923,494
1,024,620
1,599,819
2,243,201
3,001,740
2,769,111
1,830,939
- 4,646,291
5,873,141
6,412.181
12,932,320
10,683,700
21,583,221
18,032,678
20,035,166
16,763,795
31,256,697
49,363,380
56,477,111
50,548,345

The Oswego Times gives the following as the receipts of grain at Oswego from
Lakes Michigan, Huron and Erie, for the year 1863 :
Barley.
93,837
29,258

Eye.
62,192

Welland Canal........................
Welland Railway...................
L. Huron & Buffalo Railway.
Collingwood............................

Wheat.
7,037,233
909,051
161,984
107,508

Corn.
1,808,800
120,460
123,533
23,449

Oats.
48,615
58,600
___
___

Leaving for Lake Ontario....

8,215,778
669,647

2,676,242
125

107,151
325,996

123,095
1,791,572

59,310
57,045

8,785,425

2,676,367

433,147

1,824,667

116,355

Total

7,11*8

The total amount of grain received by the above routes for the last two
seasons have been as follows :
1862,
1863.

Welland Canal...................................................
Welland Railway.............................................
Buffalo and Lake Huron Railway....................
Collingwood........................................................
Lake Ontario......................................................

11,387,609
2,071,914
1,296,601
257,273
1,885,517

9,045,613
1,717,371
292,635
130,957
2,654,385

DETROIT.

We find in a late number of the Detroit Tribune a carefully prepared state­
ment of the flour and grain trade of that city for the year 1863, and from it we
have made up the following general table showing the receipts and shipments of *
flour, wheat, corn and oats for the past six years:
i ---------------- FLOUR.---------------- ,

1858
......................
1859
......................
1860
....
1861
......................
1862
......................
1863 ..............................




Receipts.
592,287
605,640
862,175
1,321,149
1,543,886
1,143,148

Shipments.
505,917
478,918
809,519
1,261,289
1,445,458
1,033,160

,-------------- W HEAT.-------------- ,

Receipts.
886,613
858,037
1,814,951
3,005,111
3,593,242
2,174,726

Shipments.
791,870
739,236
1,607,757
2,705,067
3,419,942
1,862,901

320

S tatistics o f Trade and Commerce.

1 8 5 8 ..........................
1859 .......t .................
1860 ...........................
1861 ..........................
1862 ..........................
1863 ...........................

[April,

/----------------- C O R N .------------------x

,------------------- O ATS.------------------s

Receipts.

Shipments.

Receipts.

Shipments.

236,212
403,065
638,698
1,036,506
608,861
353,295

182,687
132,487
592,044
989,309
342,887
139,616

___
173,364
399,598
819,986
407,247
662,926

___
24,816
319,205
253,157
151,204
465,057

The following statement shows the total receipts of grain and flour, reduced
to bushels, for the past five years :
Total bushels—1859..............................................................................
do
1860..........
do
1861..............................................................................
do
1862..............................................................................
do
1863..............................................................................

4,177,856
6,441.639
10,514,286
11,827,000
8,527,666

The receipts of flour at the Grand Trunk junction, near the city, which we
have not taken into the account, would make a difference of about 400,000
bushels.
BUFFALO.

The flour and grain trade of Buffalo for 1863, reducing the receipts of flour to
wheat, shows a deficiency, as compared with 1862, of 8,190,498 bushels, and, as
compared with 1861, an increase of 3,208,433 bushels. There is a deficiency in
the receipts of wheat as compared with 1862, of 9,195,483 bushels; corn,
4,201,675 bushels; rye, 369,275 bushels; an increase in oats of 4,697,255 bush­
els; barley, 218,325 bushels. There is an increase in the receipts of flour in
1863 of 132,067 barrels over 1862, and 818,498 barrels over 1861. The follow­
ing will show the receipts of flour and grain at Buffalo by lake and Buffalo and
Lake Huron Railway (not including the receipts by State Line Railway, wThich
are large) from the opening of navigation in 1861, and from January 1st in 1862,
1863, to December 31st, in each year respectively:
Years.

Flour, bbls.

Grain, bu.

1858
1859
1860
1861
1862
1863

1,536,109
1,420,333
1,112,335
2,159,591
2,846,022
2,978,089

20,002,444
14,429,069
31,521,786
50,662,646
58,642,344
49,713,245

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

Grain & flour
in bush.

21,812,980
27,530,722
37,053,115
61,460,601
72,872,454
64,603,690

ALBANY.

The following are the receipts of breadstuffs at Albany, by the Erie and
Champlain Canals, each of the last four years :
Tears.
1860
1861
1862
1863

Flour, brls. Wheat, bush. Corn, bush. Oats, bush.
1,149,100 11,176,000 14,155,500
6,490,900
1,493,238 39,886,687 23,342,334
5,978,338
1,826,509 32,667,866 23,709,882
5,990,028
1,560,800 22,206,900 20,703,600 12,437,500

_
_
_
_

Barley, bu.
2,967,600
2,235,S40
2,562,659
3,190,500

Rye, bn.
332,100
832,792
748,897
470,500

TOTAL TID E W ATER R E C EIPTS FO R FIFTEE N YEARS.

1 8 4 9 ...
1 8 5 0 ...
1 8 5 1 ...
1 8 5 2 ...
1 8 5 3 ...

.
.
.
.
.

Graiu, bush.
11,786,690
11,585,619
16,762,613
19,583,S75
19,316,019

1 8 5 4 ...
1 8 6 5 ...
1 8 5 6 ...
1 8 5 7 ...
1 8 5 8 ...

..
.
.
..
.

Grain, bush.
23,796,038
21,613,904
30.793,225
16,141,310
23,686,874

1 8 5 9 ...
1860___
1861___
1862 . .
1863___

.
.
.
.
.

Grain, bush*
18,048,798
41,122,100
62,275,951
74,811,877
66,713,000

MONTREAL.

The Montreal Witness gives the following statement of the quantities of pro-




1864]

321

S tatistics o f Trade and Commerce.

dace received and shipped in 1863 from that city. The statement includes arri­
vals by Lachine Canal and the Railways; also, exports via Portland, in sea-going
vessels by St. Lawrence River, and by Montreal and Champlain R.R., from 1st
January to 30th December, 1863, with aggregates for previous years :
1863.
Wheat, bushels. 5,506,324
Peas,
do
667,345
Barley, do
294,524
Oats,
do
373,463
Corn,
do
855,328
do
32,278
Rye,
Flour, barrels.. 1,173,096
Oat and Corn
1,789
Meal, brls... .

-R eceipts.1862.
8,529,622
534,679
236,930
96,792
1,661,611
82,665
168,174

1861.
7,829,684
1,409,859
132,749
122,399
1,565,477
24,812
1,081,160

1863.
3,806,306
774,442
640.380
3,001,766
635,387
170
692,868

-S hipments.1862.
1861.
6,945,815 6,900,100
727,277 1,409,859
373
2,457
8,072
287,877
1,774,347 1,477,114
200
632,052
654,966

2,426
9,353
21,221
GREAT BRITAIN AND IRELAND.

4,039

32,015

The following, prepared from the British Board of Trade returns, is a state­
ment of the imports of wheat, Indian corn and flour, into the United Kingdom
(Great Britain and Ireland), in each of the last four years. The wheat and corn
are in “ quarters,” which signifies eight bushels, this being 'considered in dry
measure a quarter of a ton. The flour is in “ hundredweights,” or 112 lbs. The
total only of the Indian corn is given ; but the greater part of it came from the
United States:
IMPORTS INTO TH E UNITED KINGDOM.

1861.
Qrs.

Wheat from
do
do
do
do
do
do
do
do
do
do

Russia..................................
Prussia.................................
Denmark..............................
Mecklenburg.......................
Hanse Towns......................
France ................................
Turkey and Danube.......... . .
E gypt..................................
United States......................
British America..................
Other Countries.................

1862.
Qrs.

1863,
Qrs.

1,327,158
1,450,484
145,398
93,161
156,701
224,835
390,068
759,936
3,724,770
861,452
336,267

1,046,378
1,017,807
128,155
88,800
73,013
34,034
95,811
555,290
2,008,708
483,230
111,275

Total W heat.....................................

9,469,270

5,622,501

Indian Corn, Qrs.......................................

2,738,791

2,971,872

214,146
231,044

47 C,04 3

Cwts.

Flour from
do
do
do
do

Hanse Towns........................
France...................................
United States...................... .
British America....................
Other Countries.................. .

T o ta l F lo u r..................................................

6,152,938

Cwts.

Cwts.

256,973
790,040
4,499,534
1,108,591
551,975

996,216
1,367,938
2,531,822
883,352
129,648

7,207,113

5,218,976

COMMERCE OF THE SANDWICH ISLANDS.

Our interest in the prosperity of the Hawaiian Islands increases each succeed­
ing year. Their position, in fact, is so important to our Pacific coast that we
could never consent to see the islands pass into the control of Great Britain,
or any other European power. With moderate watchfulness, this need never be
feared ; for American enterprise and capital are fast ohtstripping all other na­
tions there, and binding that country more and more closely to ns. We have
just received the official returns of the trade of the Hawaiian Islands for 1863,




822

S tatistics o f T rade and Commerce.

[April,

from which it appears that more than half of the total duty-paying goods import­
ed into those islands during the year came from the United States. The following'shows the total foreign imports, dutiable and free:
GOODS PA YING DUTY.

Imported from _

FO R EIG N IMPORTS.
GOODS AND S P IR IT S BONDED DUTIABLE.

Value.

Imported from

Value.

United States, Pacific side.. . $304,502 12 United States, Pacific side... $36,617 43
United States, Atlanticside. 122,770 00 United States, Atlantic side. 40,827 18
Bremen................................. 194,429 11 Bremen................................... 62,860 81
Great Britain........................
63,400 17 Great Britain..........................
9,227 04
Vancouver’s Island..............
32,210 52 Vancouver’s Island................
2,277 94
Sea........................................
6,291 87 Sea.......................................... 179,454 10
Islands of the Pacific...........
6,467 19 Islands of the Pacific............
5,468 22
Sitka........................................
4,585 70
Total.................................. $730,060 98
Total....................................$341,308 42
Dutiable.

Total imports at
“
“
“
“
“
“

Honolulu.
Lahaina...
H illo... .
Hawaih®

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

$1,071,369
3,553
1,561
25

Free.

40 $96,537 72
49
1,942 16
17
1,063 80
89
439 62

$1,076,509 95
$98,973 30
Total............................. .............................................
Making the total value of imports.....................................................
$1,176,493 25

The total exports during the year amounted to $1,025,852 74, being an in­
crease of nearly one quarter over 1862. Exports of sugar increased from three
million pounds, in 1862, to five millions two hundred and ninety-two thousand
pounds, in 1863. This important staple promises to be the chief production of
the Islands.
In our last number, in the article on “ Steam on the Pacific,” we referred to
this subject, and showed that climate and soil were just what was necessary, and
that they only needed capital and cheap labor to become one of the principal sources
of the world’s supply. Now that the production has really begun in earnest, we
believe it must increase rapidly : foreign capital will flow in, and the necessary
labor can be obtained from China. We see, amoDg the new articles of export,
cotton set down at 3,122 lbs., this year, most of which is said to have been
choice Sea Island.
The following table, for which we are indebted to the editors of the Honolulu
Commercial Advertiser, shows the commerce of the Sandwich Islands for the last
eighteen years :
COMMERCE OF THE TH E SANDW ICH ISLANDS, FROM

Tear.
1863
1862
1861
1860
1,859
1858
1857
1856
1855
1854
1853
1852
1851
1850
1849
1848
1847
1846

----------------------------------------------------....
___
--------___

Total
Imports.
___ $1,176,493
___
998,239
___
761,109
___
1,223,749
....
1,555,558
___
___
___
....
___
___
....
___
___
___
___
___

1,130,165
1,161,422
1,383,169
1,590,837
1,401,975
759,868
1,823,821
1,035,068
729,839
605,618
710,138
598,382




Total
Exports.
25 $1,026,852 74
838,424 61
67
659,774 72
57
807,459 20
05
74
931,329 27
787,082 08
60
645,526 10
41
670,824 67
99
572,601 49
87
685,122 67
71
472,996 83
86
638,395 20
54
691,231 49
68
783,052 35
70
477,845 81
44
300,370 98
73
264,226 63
52
363,760 74
24

Domestic
Produce
Exported.
$744,413 54
586,541 87
476,872 74
480,526 54
628,575 21
529,966 11
423,303 91
466,278 79
274,741 67
274,029 70
281,599 17
257,251 69
809,828 94
536,522 63
279,734 74
366,819 43
209,018 53
301,625 00

1856

TO

1863.

Foreign
Total Cns*
Merchandise
tom House
Re-exported.
Receipts.
$281,439 20 $122,752 68
251,882 74 107,490 42
182,901 98 100,115 56
326,932 66 117,302 57
302,754 06 132,129 37
257,115 97 116,138 23
222,222 91 140,777 03
204,545 88 123,171 75
297,859 82 158,411 90
311,092 97 152,125 58
191,397 66 155,650 17
381,142 51 113,001 93
381,402 55 160,602 19
246,529 72 121,506 73
198,192 07
83,231 32
83,551 55
55,568 94
57,208 07
48,801 25
62,325 74
56,506 64

Statistics o f Trade and Commerce.

1864.]
Tear.

,— Oil and Bone Transhipped.— .N um ber
Galls.
Galls.
Lbs. National
Sperm.
Whale.
Bone. Vessels.

1863 ..........
1862 ..........
1861 ..........
1860 ..........
1859 ........ .. . .
1868 ........ .
1 8 5 7 ........ .. . .
1856 ........ .. . .
1855 ........ . . .
1854 ........ . . .
1853 ........
1852 ........
1851 ........
1850 ........
1849 ........
1848 ........
1 8 4 7 ........
1846 ........

47,859
156,306
176,306
121,294
109,308
156,484

675,344
460,407
795,988
782,086
1,668,175
2,651,382
2,018,027
1,641,579
1,436,810
1,683,922
3,787,348
1,182,738
909,379

...........

337,043
193,920
527,910
572,900
1,147,120
1,614,710
1,295,525
1,074,942
872,954
1,479,678
2,020,264
3,159,951
901,604

7
7
7
10
5

10
10
9
13
16
7
3

7
12
12
6
4
17

323

M erchant Number Gallons
Vessels.
Entries s p irits
Tonage. W halers. Consu’d.

No.
88
113
94
117
139
115
82
123
154
125

211
235
446
469
180
90
71
65

42,930
48,687
45,962
41,226
59,241
45,875
26,817
42,213
51,304
47,288
59,451
61,065
87,920
90,304

......

102*
73*
190*
325*
549*
526*
387*
366*
468*
525*
535*
519*
220
237
274
254
167

7,862
8,940
9,676
14,295
14,158
14,637
16,144
14,779
18,318
17,537
18,123
14,150
9,500
8,252
5 717
3 44 3

3 971
6)491

* These figures give the number of Custom House entries of Whalers at various
ports—some of the. vessels entering at several different ports during the year. The
actual number of different Whalers during the Spring of 1863 was 36 vessels, and
during the Fall season 44—total, 80.

A SUCCESSFUL INSURANCE COMPANY.

A properly written history of the world’s mercantile operations would grad­
ually work more and more into a history of the insurance system. It is profit­
able then to turn to the record of a single successful corporation, and note the
increasing favor it yearly commands. And for such a company we point to the
Washington Insurance Company.
This Company commenced business in December, 1850. with a capital of
$200,000, under the management of its present efficient president, who was its
founder, and who has gi^en it his undivided attention from the start. The
result is shown in its.perfect management and success. During the first eight
years it paid $288,000 in dividends to stockholders, being an average of sixteen
per cent per annum. In 1860 its capital was doubled, from $200,000 to
$400,000, and the Participation System adopted “ the safest and cheapest system, of
insurance." The Company also added the business of insuring in land marine
risks on the lakes and rivers and canals. Since then it has divided $180,000
among stockholders, and has also made three dividends in scrip of sixty per cent
on the earned premiums of policies entitled to participate, being the largest scrip
rebate made by any company for three consecutive years.
The gross premiums of the Washington for the fiscal year ending January 31,
1864, were $206,314. The Company paid a five per cent dividend in August
last, which, with the eight per cent now announced, makes thirteen per cent for
the year to stockholders.
Since the removal of the Washington, in May, 1862, from Wall street, to the
splendid building erected by Dr. E leazer P armly, on the corner of Broadway
and Maiden Lane, it has largely increased its business.
We refer to the success of the Company with pleasure, and do not hesitate to
recommend it to those who are in want of insurance against loss or damage by
fire, or the risks of inland navigation on the lakes, rivers or canals. Mr. S atterlea , the President, Mr. W eston, the Vice President, and Mr. L othrop, the Sec­
retary, are well known to the public as efficient and reliable men.— Commercial
Advertiser.




THE

MERCHANTS’ MAGAZINE
AND

COMMERCI AL

CONTENTS
VOLUME L.

OF No.

REVI EW.

IV.,

VOL.

A P R I L , 1864.

L. n
NUMBER IV .

A rt.

paor

L M ERCA N TILE B IO G R A P H Y : P E L A T IA H P E R I T ,......................................................... 245
A ction of the Cham ber of Commerce on th e D eath of P elatiah P e rit,....................... 258
II.

FIN A N C E S OF T H E S T A T E S ............................................................................................... 254

I I I . T H E MONTANA OF T H E A N D E S .......................................................................................... 261
IV . TH E COTTON M A N U FACTURE OF G R EA T B R IT A IN .................................................. 270
V. STEAM ON T H E PA C IFIC OCEAN. T r a d e b e t w e e n C h i n a a n d J a p a n . B t
H. B. A..................................................................................................
V I. TH E DANO-GERMAN W A R . B t T. M. J .............................................................................. 288
V II. D EA TH OF THOMAS T1LESTO N ............................................................................................ 294
ProceediDgs of th e Chamber of Com m erce on th e D eath of Thomas T ile s to n .... 295
V III. COMMERCIAL CH RO N IC LE A N D R E V IE W ................................................................... 2DS

JOURNAL OF BANKING, CURRENCY, AND FINANCE.
Banking Movements in the U nited S tates.............................................................................................. 306
Now Y ork'B anks.....................................................................................................
Boston Banks................................................... ........................................................... ................................. 811
Philadelphia B anks....................................................................................................................................... 311
London Money M arket—Bank of England, &c..................... ............................................................. 812
Bank of F ra n c e .............................................................................................................................................. 315
Bank of M exico...................................................................................................
The Loan A ct of March, 1864............................................................. .................................................... 317
Resolution A uthorizing Secretary of Treasury to Dispose of G old.................................................. 818

STATI STI CS OF TRADE AND COMMERCE.
F lo u r and Grain T rade for 1863: R eceipts and Shipm ents a t Chicago, Oswego, D etroit,
Buffalo, Albany and M ontreal, and Im ports into G reat B rita in ................................................ 318
Commerce of the Sandwich Isla n d s.............................. ....................................................................... .. 321
A Successful Insurance C om pany............................................................................................................. 823




811