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MERCHANTS’ MAGAZINE
AND

COMMERCIAL REVIEW.

A P R I L ,

1 8 6 7.

POLITICAL ECONOMY— CAPITAL AND VALUE.
BY RICHARD SULLY.

Political economy seems hitherto to have been treated rather as an ab­
stract science, than one that ought to be considered and studied, as the
basis and guide of the statesman, in his most important function o f secur­
ing the prosperity and happiness of the people.
This negligence may be
attributed no doubt, to a variety of causes. The science itself has been
greatly incumbered by unnecessary details, which, in some instances, has
led the author into serious contradictions, with respect to the principles
which govern the science; while, in other cases, these principles have
neither been sufficiently comprehended, nor defined with sufficient accuracy.
The term capital, though designating so important an element of political
economy, lacks a proper and correct definition.
It does not appear to require a very extraordinary amount o f wisdom or
discernment, after a man has attained to sufficient gravity of mind to think
for himself, that the first requisite for his commencement in business o f any
kind is capital; because, without it, he cannot proceed a single step. And
vet the nature of capital, and its importance seems neither to have been
clearly apprehended, nor pointed out, by any of the standard writers upon
the subject in question.
Dr. Adam Smith seems to have taken exactly opposite grounds to the
French economists, though they were much nearer the truth than he sup.
VOL. LVI----NO. IV.




16

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[April,

posed. He excluded land entirely from his category o f capital, and gave
to labor the greatest importance in the production o f wealth or value. If
the economists had assumed that the land and its products necessarily
limited the supply of capital, instead of comprehending its amount, they
would have been correct.
M. Say admits the concurrence o f natural agents in the production of
•value, but does not perceive that the available quantity of these natural
agents must necessarily limit the supply of capital as well as, finally, the
■creation of value. In fact that the whole fabric of wealth, must be upheld
and kept in existence by the products of these natural agents; and if the
supply be cut off or limited at any given point, either by the exhaustion of
the soil, or the successful competition of other consumers, a further in­
crease of capital at that particular point, or even of value, becomes impos­
sible.
The error o f the economists consisted in the assumption that the landowner still retained a monopoly of capital after the division of labor had
commenced; the error of Adam Smith and the more modern political
economists lies in the assumption that land is not capital.
Previous to its appropriation, land would, of course, have no value, and
might, under those circumstances, be considered like air or water, as prac­
tically unlimited. But after it had become the property of individuals, it
would necessarily, by the division of labor and the increase of population,
become valuable, and therefore ought to be considered capital. To sav
that land varies in productiveness with a given amount of labor, from the
force of unequal fertility, is only to say that some land is more valuahle
than other land, and admits of the payment of what political economists
call rent; but this can be no valid objection to its being ranked as capi­
tal, as it also varies in the amount of rent (net product) according to its
proximity or distance from market. It also constantly increases in ex­
changeable value, by the accumulation of other capital, and the increas­
ing necessity for its products, without a corresponding increase in its
utility. It appears, therefore, to be a mere groundless assumption that
the poorest soil in cultivation pays no rent beyond the interest of the cap­
ital invested in the fences and buildings necessary to its occupation. If
there is ever so small an advantage in its cultivation, the powers of the
soil will surely be remunerated to the owner. Land is, therefore, not
only capital, but it has superior advantageous to any other kind of capi­
tal, and consequently ought to bear its fair share of taxation according to
its value for the support o f the government, but not to the extent of pre­
venting cultivation. W e should define capital, therefore, not exactly m
the words of McCulloch, “ as those portions of the produce o f industry
existing,” etc., but as those portions of wealth “ which may be directly
employed, either to support human beings or to facilitate production.”
In the word wealth, therefore, we must include the fertility of the soii, as
no amount of the accumulated products of labor could possibly produce a
single grain of corn or other vegetable production without it.
Having decided what we consider to be capital, we will, for a moment,
return to the economists, merely to point out the rock upon which they
split. If they (the economists) had closely observed the operations of
society, they must have detected the fact that the division of labor had
originated a new kind of capital, which we designate skill, and which




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251

would enable its possessor to accumulate the products o f industry, which,
in their turn, would become capital, and therefore yield a revenue. Lay­
ing the whole burden of taxation upon the land would not have prevented
this aggregation of circulating capital, though it might have prevented
the increase of agricultural capital as well as population, unless a free im­
portation o f agricultural products had at the same time been allowed,
which would speedily have ruined the home producer. There is no doubt,
however, that taxes ought to be as few and simple as possible.
To prove the assumption that land is neither wealth nor capital, political
economists generally have denied that it has any value, merely because it
is one of the elements of nature, and has not been produced by the labor
o f man. Say considers utility to be the chief element of value. He
says— “ to create objects which have any kind of utility is to create
wealth; for the utility of things is the groundwork o f their value, and
their value constitutes wealth.” Yet, like Smith and others, he excludes
land both from wealth and capital, but is forced to acknowledge its agency
in production. McCulloch also, notwithstanding he finds fault with Adam
Smith for writing the following passage— “ that no equal quantity of pro­
ductive labor or capital employed in manufactures can ever occasion so
great a reproduction as if employed in agriculture” — is himself forced to
admit “ that nature powerfully assists the labor of man in agriculture;”
but this he afterwards endeavors to neutralize by assuming that we are
not less indebted to nature in every department of industry— referring to
the use we make of the wind, the water, the pressure of the atmosphere,
steam, etc.— and then asks if they are not all the spontaneous gifts of na­
ture 1 Just as if these elements, or natural forces, could, like the land, be
limited to the use, or become the property o f individuals. Though the
vegetable and the animal kingdoms, as well as the elements o f nature,
were gratuitous to man, and were really, while he was in a savage state,
previous to the institution of propertv, his common possession, yet they
never lacked utility, one o f the elements of value, and only required to be
limited in use, by becoming the property o f individuals, to give them the
other element, which may be appropriately termed, “ difficulty of attain­
ment.”
Most political economists who have assumed that labor is the measure
o f all values, have been considerably puzzled to make it fit under all cir­
cumstances. For instance, Dr. Smith says: “ But though labor be the
real measure o f the exchangeable value of all commodities, it is not that
by which their value is commonly estimated. It is often difficult to assertain the proportion between two different kinds of labor,” etc. This is
quite true with respect to the difficulty o f measuring the value of different
commodities, merely by the amount of labor represented, as this must be
in many cases extremely uncertain, and, in some, have little bearing upon
the matter. The real difficulty appears to be, that neither the term nor
the principle of labor on the one hand, nor the principle of utility on the
other, are sufficiently comprehensive to express concisely the compound
principle of value. This will be much better done by substituting the
terms desirability and difficulty of attainment. These terms seem suffi­
ciently comprehensive to include the whole of the phenomena whicti tend
to make up this difficult problem. They include all the circumstances of
supply and demand, the operations o f scarcity and gluts, the lucky inci-




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[A p r il,

dent of finding a precious stone, or a nugget of gold, etc. And though
each of these principles must he present to form every item of value, it is
not to be expected that they always act uniformly or equal; sometimes
the influence of one may predominate, and sometimes that of the other.
It should seem that desirability (utility) is the more constant quality,
while labor, or difficulty o f attainment, is the more variable. W e there­
fore consider the definition of the principle of value by Dr. Smith, as well
as all the other political economists we have ever seen, to be defective
and incomplete. But we agree with Dr. Smith that agriculture is a more
important and productive employment than manufactures, in as much as
it is the foundation upon which all manufactures must be built, and sus­
tains all other employments, whether productive or unproductive. The
economists were right, therefore, when they assumed that land and its
natural productions were capital, but they were wrong when they assumed
that it was the only capital o f a community. And yet circulating or ac­
cumulated capital must always be limited by the extent and power of the
soil; that is, assuming that we are enclosed within a given circle, either
by a real or artificial wall of non-intercourse. On the other hand, if the
freest intercourse with other nations be allowed, it will finally be limited
in amount by the agricultural productions, which can be obtained by a
direct competition with the manufacturing labor of other countries.
According to this view— if capital be a fixed quantity, it follows that
when the ultimate is reached, the maximum of profits and population will
also be reached, and if wealth should afterwards accumulate in the hands
of the rich, that is, that part of it which consists of articles of luxury and
convenience, which cannot be applied to reproduction, it will be at the
expense of the further degradation of the people. These conclusions apply
more especially to old and populous countries, nevertheless, they are not
without significance to every large and populous city. The great diffi­
culty at present between the capitalist and the laborer, is upon the divi­
sion of profits ; or rather, the remuneration o f labor. This division may
appear arbitrary and unequal, but it is not therefore unjust; because it
must be the necessary consequence of the relative economical condition of
the working classes in other countries; and therefore cannot be altered
without reference to wages elsewhere, except with great danger to the
welfare of the community acting in so absurd and arbitrary a manner.
If the masses o f the people were intelligent and moral, there need be no
violent altercation with the capitalist to obtain their fair share o f profit
But under the present circumstances o f intense competition, it is neither
for the interest of the laborer nor the capitalist to give too much to con­
sumption ; as in case o f very low profits, whatevery might happen to the
community, there might be nothing to fall back upon to relieve a public
calamity; and a community so situated would not easily recover its former
opulence and prosperity.
If we could be made to understand that the laws which govern the
moral are equally immutable, with those that govern the physical, there
might be some hope for bettering the condition of the people ; but as long
as they depend either upon arbitrary regulations, enforced by themselves,
or upon protectionist schemes enacted by governments, so long will crime,
pauperism and misery abound in all large communities.
To illustrate the truth of these propositions we might refer to many of




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the nations of Europe, which have been for centuries subject to what
is termed the protective system, and whose populations have increased at
the slowest possible rate, owing, no doubt, to the constant oscilations in
the demand for labor, caused by the inequality of the seasons operating
under the influence of such a contracted commercial system, which neces­
sarily confines the community, as nearly as possible, to the products of
their own soil.
The statesmen of England appear to have been the first to perceive the
great inconvenience of this narrow and uneconomical system, and twentyfive years ago took steps for its gradual abolition. England has since
steadily increased both in wealth and population. Her friends philanthro­
pists, however, seem to be doing their utmost to neutralize, or destroy,
the effects of these beneficent measures. Great Britain at present, no
doubt, stands in a rather dangerous or critical position ; importing, as she
does, at least one-third of her consumption, and consequently her foreign
trade must be an important element in her prosperity. The encourage­
ment given to trades unions, co-operative societies and reform agitation,
must therefore be injurious to that open, healthy competition which it
must be her interest to continue to wage in self defence. Trades-unions,
co-operative societies, & c , can be only lame and temporary expedients for
any evils that may affect the working class; and in the end may under­
mine the power and prosperity of the nation. It is idle to suppose that
the operative classes o f England have any very superior advantages, ex­
cept, perhaps, in one or two instances over those o f the Continent of
Europe. And should England exhaust her supplies of coal or iron, or
should the expense of obtaining them become much enhanced; or should
she by any means lose her present comparatively cheap labor, her power
and population would certainly decline.
If the protective system be unnatural and injurious, when applied to
the trade and commerce o f a nation, it will surely be found to be so when
applied to enhance the individual interests o f the labor.
Trades-unions necessarily tend to equalize the rate of wages of good
and bad workmen, and to enforce the employment of all the idle and in­
ferior hands who may happen to belong to the union ; while they demand
wages which the profits of capital cannot legitimately afford. These and
other evils will no doubt follow a persistence in such a course of action.
But to return to our subject.
Coal and timber notwithstanding they have been excluded from the
category of capital by all standard writers, are absolutely necessary, at
least, one of them, to the very existence off a nation; and why they
should not be considered capital, is hard to understand.
If a nation happens to possess an inexhaustible supply of coal and
other minerals, a deficiency of timber, may, perhaps, be supplied without
much inconvenience; but if coal be deficient, she will be pretty certain
to attain to the maximum o f population, when that part of her soil is
cultivated which is not reserved ir forests, for the necessary supply of
timber. Her foreign trade will hardly extend beyond what is necessary
to supply the raw material for her manufactures, which she cannot pro­
duce at home. A country thus situated, however, when she had once
attained to the maximum of her wealth and population, would be much
more likely to retain her position among nations, than one otherwise
situated.




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[.April,

Thus seeing the importance of these natural products, to the wealth
and population o f nations, we cannot but decide that they are capital;
and to say that they are destitute o f value, merely because they were not
produced by the labor of man, is simply absurd. Both coal and timber
are capable of appropriation and we accordingly find them appropriated;
and, therefore, practically limited in quantity, which is one o f the admitted
elements of value.
From thpse premises it follows as a sequence, that all the products of
nature which can be appropriated, are capital; and that the number of
population, and all the moveable, or circulating capital, necessary for
their maintenance upon any given spot, will depend upon the amount o f
this natural capital, which can, directly, or indirectly, belaid under contri­
bution for their use and benefit. It is these natural agents which makes
labor profitable.
There is no doubt that the division o f labor has increased the amount
of capital in existence, by rendering it possible for each individual to pur­
sue a single calling. It necessarily produced skill, machinery, and a con­
tinued extention ot cultivation.
This process would continue just as long as there remained soil to cul­
tivate, sufficiently fertile to repay the expense, including the fee for the
landlords rent, and the smallest modicum of profit upon the circulating
capital invested. This point once reached, a further increase of capital
would become impossible. Certain kinds o f wealth and luxuries, might
increase, but not capital, plate, carpets, carriages and sumptuous apparel,
&c. This might, however, flow from two sources, either from improved
methods, or from the degradation of labor. If proof be required of the
truth of these doctrines, it may be found in every day experience, in the
relative increased price of food, raw materials, fuel, and house rent.
In common parlance gold and silver are designated capital, but this is
only a popular error.
They are only valuable commodities, which
are used to represent capital as a circulating medium. W e might
pile them up mountains high, without adding a fraction to the capital of
the community ; and yet a certain portion is useful, and absolutely neces­
sary. Any given amount, sufficient to move things from hand to hand,
and increasing in the same ratio as other commodities, is all that may be
designated capital, any addition beyond this, is mere waste and loss.
Money by facilitating the exchange of commodities saves labor, and makes
the division of labor possible, so far, it is productive, and therefore capital ;
but any increase after that, beyond the amount necessary, to keep prices
stationary, makes no addition to value, or even to utility. And yet, w©
go on, from year to year, increasing our gold production; and taxing the
people to the full amount o f that production, while many believe, that
we receive value for all that we export, an assumption without the shaddow of foundation in fact.




1867]

TH E

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255

EXTRAVAGANCE.

TIIE ERA OP EXTRAVAGANCE.
Time was when Americans could justly boast o f the economy o f their
government. A t an annual cost o f $77,000,000, or 2£ dollars per capita,
thirty-two millions o f population were governed more beneficently than
the people o f any other country. The achievement was one at which
European publicists wondered; and, as the event has proved, one which
we ourselves did not half appreciate. Our people were prosperous and
self reliant; their political traditions had taught them to expect little
from governments, to look with jealousy upon all central agencies, and
to trust rather to individual and local effort than to the national govern­
ment for the achievement o f important enterprises. The same rule
applied to the State organizations as to the federal; and thus the province
o f government being confined within narrow limits, it cost us little to be
governed.
It is unnecessary to remark how completely within six or seven years,
all this has been changed. The creation o f a great military power ap­
pears to have produced the singular result o f inducing the people to re­
pose in official hands that power which formerly was confided to them­
selves alone. In the eyes o f the public, the government appears to be
invested almost with the attributes o f a deity, capable not only o f protect­
ing them against a public enemy, but possessed o f a wisdom far above
their own and to be entrusted with the regulation o f affairs which, here­
tofore, had been considered beyond its province.
O f course, opinions will vary as to the wholesomeness o f this new
tendency in our national politics. Upon the question o f its economy
there can, however, be no second opinion. In proportion as we increase
the functions o f the Government we extend its agencies, and extending
its agencies we enlarge its expenditures; and when the rule is made to
apply to the State Governments, as well as the Federal, it is apparent
that this tendency must involve a large increase o f taxation. The war
has involved us in a Federal debt o f $2,600,000,000, which alone
requires an additional yearly payment o f $130,000,000, This, it might
have been supposed, would have supplied a standing argument in favor
o f the most stringent curtailment o f expenditures ; but our legislators
appear to have concluded otherwise. They are surprised at the facility
with which the revenue is raised, and hence conclude that there is no
great necessity for economy. It was not to be expected that, immedi­
ately on the close o f the war, we should witness a return to the ordinary
scale o f expenditures; yet it is not easily seen how, with a strict regard
for public retrenchment, the expenditures, exclusive o f payments on
account o f the public debt, should have been more than six times the
amount o f those for the year 1860. Such, however, is the fact, as will
appear from the following comparison o f the actual payments for 1860
and 1866 :
I860.
$6,148,655
1,163,207
20,658,007
3,955,686
16,40 >,707
11,513,150

1866.
$12,287,828
1,338,388
27,480,744
18,852,416
284,449,701
43,324,118

Increase.
$6,130,178
175,181
6,772,437
14,896,730
268,039,934
31,810,968

Total................................................................... $59,818,472

$387,683,195

$327,834,723

Civil service.............................................................
Foreign intercourse....................................... .. .. .
Miscellaneous..........................................................
Department of Interior...........................................
War Department .................................................
Navy Department..................................................




256

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OF EXTRAVAGAN CE.

[April,

It surely cannot be deemed unreasonable to expect that for the cur­
rent fiscal year, we should have something like an approximation to the
scale o f expenditures which obtained before the w a r; excepting in those
items of expense which must be regarded as inevitable results o f the war.
Yet we find the report o f the Secretary o f the Treasury gives for the
six heads o f expenditure above enumerated, an aggregate o f $216,569,398 as the estimated disbursements for 1867, or $156,710,926 more than
in 1860. It is true that o f this amount $64,000,000 is apportioned for
the payment o f bounties ; but it is also true that it is through appro­
priations o f this very character, based upon nor ctual claim on the G ov­
ernment, and really in the nature o f a political gratuity, that the public
expenditures are being so enormously increased.
Nor is this extravagance in appropriations peculiar alone to Congress.
The State legislatures show a like recklessness o f expenditures. Here
also the immense sums raised in support o f tb c war have demoralized
every idea o f economy, and large sums o f money are voted with spend­
thrift heedlessness. It may be safely estimated that the States, exclu­
sive o f the Southern States, have increased their debts during the war
nearly $300,000,000, while the city, town and county debts have been
increased to a still larger extent, the consequent local taxation being most
injurious to the interests o f property holders. Yet, in spite o f this im ­
mense accumulation o f debt, we find our State and city governments
proposing undertakings which will still further augment their obligations.
In our own Legislature it is gravely proposed to increase the canal debt
o f the State $10,000,000, and in the Senate a bill has actually been passed
to a third reading, and that almost unanimously, granting aid to the ex­
tent o f $5,000 per mile to any road in the State that shall construct
and complete twenty miles o f road during the year; the Legislature of
Maine has just passed an act which authorizes any town to take stock in
any railroad in the State ; and these are but chance specimens o f the
prevailing recklessnessof legislation respecting the increase o f corporate
obligations.
The last five years have been a period o f unequalled extravagance
in the management o f private associations. In 1864 about five hund­
red new companies were started in this city alone, and in many instances
for objects purely chimerical. Philadelphia, Boston, and other large
cities also had their mania for new enterprises. In too many cases
the object o f the organization o f these companies had been gained
when the promoters had disposed o f a certain amount o f stock or had
secured pay for a few acres o f land at fabulous prices, and now the
certificates issued by the million are, little better than so much waste
paper. N or have our railroads generally shown a very conservative
regard for their debts. Some have undertaken great works o f con­
struction in a period o f inflation, and have consequently had to issue
stocks or bonds to double the amount that would have been required
in ordinary times.
W e think it is high time that some check were imposed upon this
recklesness in accumulating debts'? A large portion o f our federal,
state and local war debts were contracted in a currency worth 50 to 60
cents on the dollar, and most o f them will have to be liquidated in gold
or its equivalent. So far as respects debts contracted for war purposes




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this was an inevitable misfortune.
But in the ease o f enterprises
undertaken now, or appropriations made for unnecessary objects no
excuse can be given. Unless we are prepared to be stigmatised as a
nation o f bankrupts we must suspend this accummulation o f debts, and
by a system o f rigid economy in. every branch o f expenditure prepare
for the day o f liquidation.
Our public men and the press have, o f late years, so dwelt upon the
idea o f our exhaustless resources, it has really become a popular belief
that there is no limit to our paying powers. The apparent ease with
which revenue has been raised the last two years has helped to confirm
this belief. That we have the ability to meet all our outstanding obli­
gations, and that they will be faithfully met, none can or wish to deny.
It is not the possibility o f repudiation (hat we fear; it is rather the
knowledge that we shall make full payment, but in doing so shall be
compelled to endure a system o f taxation which will paralyze our
energies and cripple our industries, unless we check this universal spirit
o f extravagance. Even now the country is laboring under its burdens
o f taxation; every interest is becoming restive under its portion o f
the load, and endeavoring to shift it upon other shoulders. Shall this be
increased, or will those in power realize our true condition, and cease
giving away the public money and lending the public faith for private
enterprises ?

TRADE OF GREAT BRITAIN AND THE UNITED STATES FOR THE YEAR lSGti.
COTTON, BREADSTUFFS, TOBACCO, ETC.

After a period of more than usual delay, we have at length received the
trade returns of Great Britain for the past year. In many respects,
they are of more than ordinary interest, while they indicate the exist­
ence of a larger trade than has heretofore been carried on by any one
country since international trade became the active p ursuit of men.
Much of this increase is due to the fact that previously to the failure
of Overend, Gurney & Co., in May last, unusual facilities for obtaining
advances were given the British merchants. The late crisis, howevei,
has reduced the number of banking, financial and discount establish­
ments in Great Britain, and many commercial houses find greater diffi­
culty in raising money, hence, this class of traders— one, indeed, which is
very numerous— is compelled to act with much more circumspection, and
we anticipated, therefore, that the trade o f this year will fail somewhat
below that of 1866. Still it must be observed that our high tariffs, and
constant changes in our tariff regulations, afford British merchants abund­
ant opportunity for competing to great advantage with our own man­
ufacturers, a circumstance, in our age of keen and active competition
like the present, likely to be quickly embraced by our rivals in com­
merce. It would, therefore, not surprise us if, after all, the British Board
of Trade returns for the present year, show a result not much below last
year, while, as regards the profits attached to it, the comparison would
undoubtedly favour 1867.




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[ April,

STATES.

The declared value of the exports of British and Irish produce and
manufactures from Great Britain and Ireland last year amounted to
£ 188,821,785 ; against £165,835,725 in 1865, and £160,449,053 in 1864.
There is, therefore, an increase last year of about £23,000,000 as com­
pared with 1865, and of about £2S,400,000 as compared with 1864. In
the exports to the United States there is an increase of about £7,200,000 ; to Egypt. £1,600,000 ; to China, £1,500,000 ; to Brazil, £1,500,000 ; to the Argentine Confederation, £800,000, while to all foreign
countries the exports show an increase of £17,000,000. To the East
Indies there is an increase of £1,700,000; but as regards Australia, the
increase is confined to £350,000. As bearing more particularly on this
country, it must be noticed that the exports o f the above mentioned articles
to Canada in 1866 were valued at £6,830,040, against £4,707,728 in
1865, being an increase of £2,100,000, a circumstance to be ascribed, in
a great measure, to the abrogation of the Reciprocity Treaty. The fol­
lowing statement shows the declared value of the exports of British and
Irish produce and manufactures to all quarters in each month last year,
and in 1865 and 1864:
Jan........
Feb........ . . . .
Mar........ ...
April....... . . . .
M a y ---- . . . .
June....... . . . .
J uly....... . . . .

1864.
£
12,698,121
J3,555,674
13,225,039
14,176,640
13,978,526
14,394,364

1S65.
£
10,489,339
11.376,214
13,770,154
12,071,111
13.194,7-'»8
13,227,062
14,113,410

1866.
£
14,354,74S
15,116,063
17,520,354
15,366,414
15,870,131
14,630,120
14,957,834

Ang......... .. .
Sept........ ...
Oct.......... ..
Nov......... ...
Dec.......... ...

1864.
£
16,274,269
14,687,942
12,871.491
12,065,213
12,095,437

1865.
£
14,158.648
17,216,681
15,547,225
15,567,742
15,030,088

—

1866.
£
17,450,156
16,671,078
16,S95,894
15,080,43U
14,914,563

.

Total .. . 160,449,053 165,835,725 188,827,785

O f these, the shipments to this country for the twelve months were as
under:
To Atlantic ports, Northern..
“
Southern.
Pacific ports . .......................
Total

1864.
£15,711,127
87,876
000,502

1865.
£20 330,290
300,214
498,443

1866.
£26,261,074
1,421,420
801,652

£16,708,505

£21,227,956

£28,484,146

— of which the following are the leading particulars :
DECLARED VALUE

OF

EXTORTS OF BRITISH

TO THE UNITED STATES IN

Alkali........................................................
Beer and ale.............................................
Coals .......................................................
C o T T o fc M

an u factu res—

Piece goods...........................................
Thread...................................................
Earthenware and porcelain.....................
Haberdashery and millinery....................
H ardw ares

and

L in e n M a n u f a c t u r e s —

Piece g o o d s.........................................
Thread..................................................
etals—

Iron—Pig, & c........................................
Bar, & c......................................
Railroad......................................
Castings.....................................
Hoops, sheets and boilerplates
Wrought.................................... .




IRISH

1864, 1865

PRODUCE
AND

AND

MANUFACTURES

1866.

1864.
£384,259
43,411
129,470

1865.
£498,997
55,524
118,430

1866.
£994,454
80,045
83,901

1,678,440 3,011,832 3,192.446
202,377
214,050
356,082
39S,338
452,452
795,685
761,778
937,912 1,120,414

Cutlery—

Knives, forks, &c.................................
Anvi s, vices, & c..................................
Manufactures o f German silver, & c...

M

AND

116.247
90,806
265,879

179,956
96,861
362,194

312,563
109,531
731,824

2,481,099 3,635,362 4,172,989
149,460
229,220
187,‘ 60
2*5,429
731,805
831,952
16,544
222,175
258,371

231,648
25S,257
426,799
5,608
119,567
165,473

315,415
571,747
865,152
19,568
842,638
227,779

1867]

TRAD E

OF

G R E A T B R IT A IN

AND

TH E

U NfITED
ITED STATES.
ST A TE S.

S il k M

an u factu res—

74,095
17,270
28,508
75,831
39.093
11,229
16,300

73.597
3,436
40,915
130,311
44,478
16,741
31,410

127,856
8,409
35,032
99,755
85,719
18,656
13,700

709,765
270,442
61,395

572,092
385,841
36,265

940,485
789,100
47,694

2,058,103 3,785,223

3,578,219

Broad piece goods............................... ................................
Handkerchiefs, scarfs, &c....................................................
Ribbons o f silk o n lv .............................................................
Other articles of silk only.....................................................
Other articles mixed with other materials......................... .
Spirits, British.........................................................................
Wool ... .................................................................................
W

oolen an d

W

o rsted

1865.
16r6.
693,013
366,683
43,396
42,290
167,439
175,164
975,406 1,434,521
72,038
367,407
106,613
70,273

186'.
493,244
16,426
251.809
658,218
45,439
36,619

Steel—Unwrought...............................................................
Copper, wrought.................................................................. .
Lead, pig.............................................................................. .
Tin plates.......................................................... ............... .
Oilseed...................................................................................
Salt .............................. ...........................................................

M an u factu res—

Cloths o f all kinds ................................................................
Carpets and druggets...........................................................
Shawls, rugs. &c...................................................................
Worsted stuffs o f wool, and o f wool mixed with other :
terial...................................................................................

259

COTTON.

The return showing the importation o f cotton into Great Britain is
important, as indicating a very large increase in the extent o f the sup­
plies received from United States ports, the total being 4,643,370
cwts., against 1,212,700 cwts. in 1865, and 126,322 cwts. in 1864.
Brazil is making steady progress in the production o f cotton, and should
the present rate of increase continue, an import of about 800,000 cwts.
into the United Kingdom m aybe anticipated during the current year.
Esrypt, as we had been led to expect, shows a falling off, the natural result
of her short crop last season. From the East Indies, last yeai, < reat Bri­
tain received a very large supply, viz., nearly 5,500,000 cwts., being the
largest importation from that country in any period. The particulars of
imports are subjoined :
IMPORTS OF COTTON INTO GREAT BRITAIN IN

1864, 1865

AND

1866.

From United States.................
Bahamas and Bermudas,
M exico...........................
Brazil..............................
Turkey...........................
Egypt..............................
British India...............
China..............................
Other countries.............

1864.
cwts.
126,322
376.047
2-VS,027
339,442
169,234
1,120,479
4.522,566
769,259
324,559

1865.
cwts.
1,212,790
158,607
327,365
494,671
223,133
1,578,912
3,981,675
320,141
434,655

1866.
cwts.
4,043,370
7,515
3,145
611,808
92,926

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

7,975,935

8,731,949

12,295,803

1,05s, mm

5,493,770
52,120
335,249

The computed real value of the cotton imported in the eleven months
was:—
From United States................
Bahamas and Bermudas,
Mexico............................
B razil............................ .
Turkey............................
E gypt............................
British India..................
China..... .........................
Other countries.............
Total

1864.
£1,6-0,829
4,304,186
2,576,366
3,748,326
1,585,493
11,676,532
32,357,460
5,698,849
3,423,377

1865.
4,128,462
I,
2,771.744
3,819,500
982,403
II, 243,769
20,743,176
1,559,252
3,166,448

1866.
32,126,123
379,338
48,923
28,591
4,471,963
518,021
7,288.528
24,000,289
196,858
1,986,122

66,991,418

49,294,092

70,665,438

Although the export demand for cotton at Liverpool has recently




260

[April,

TR A D E O F G R E A T B R IT A IN A N D TH E U NITED STATES.

alien off to a very important extent, while during the closing months
fof last year, the business doing fot shipment to the Continent was
comparatively small, the total export of cotton from Great Britain last
year was Y00,000 cwts. in excess of 1865, and about 1,280,000 cwts.
greater than in 1864. The particulars of exports are as under :
EXPORTS OF COTTON FROM G REAT BRITAIN IN

1864, 1865

AND

1S66.

To Russia....................................................................cwts
Prussia...........................................................................
Hanover.........................................................................
Hause Towns ..............................................................
Holland..........................................................................
Other Countries............................................................

1864.
222,446
15,310
50,697
512,781
4’ .'.,291
969,317

1S65.
276,288
60,067
15,111
714,600
431,172
1,207,356

1866.
3S0.374
81,195
5,618
866,349
544,71:0
1,594,553

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

2,184,842

2,704,544

3,472,789

BREADSTUFFS.

This country makes a very poor figure in the import return of wheat
and flour; but, on the other hand, Russia, in the southern portion o f which
country the crop of wheat is superior in quantity to any other part o f the
globe, shows an increase o f about 800,000 cwts. In the importation
from France there is an augmentation of 1,220,000 cwts., a fact to be
accounted for by the large importation during the past nine months of the
year. France, however, is still an exporter of wheat and flour, notwith­
standing the many reports in circulation that her crop was so greatly
deficient. In December, for instance, the import of wheat and flour was
378,000 cwts., against 1,27.1,000 cwts. in 1865, and although the decline
is considerable, it is sufficient to show that France has still an available
supply for export, and that, after making allowance for the fact that a
portion of these importations is Black Sea produce, re-exported from
French ports, she is bv no means reduced to the necessity of buying
largely in foreign markets. The imports of breadstuffs stand thus :
IMPORTS OF BREADSTUFFS INTO GREAT BRITAIN IN

1864, 1865

AND

1866.

WHEAT.

1864.

729,238
4,935,328
272,296
669,701
494,407
587,105
473,127
366,868
7,895,015
1,225,513
428,881

1865.
S,093,879
641,273
5,403,914
254,159
647,685
486,069
2,252,873
574.1S5
10,0b3
1,177,618
306,765
1,114,4S0

1866.
8,937 199
506,236
4,401,409
187,938
733,571
878,912
3,473,130
528,433
33,831
035,239
8,789
2,S31,642

Total................................................................. 23,196.713
Indian c o r n ............................................................... 6,2S5,938

20,962.963
7,096,033

23,156,329
14,322,863

1S64.
330.770
1,81? 854
1,745 933
485,099
136,735

1865.
247,796
3,044,823
256,769
177.353
177,730

1866.
347,012
3,640,320
280,792
40,650
G63,500

4,512,391

3,904,471

4,972,280

From Russia............................................................... cwts 5,119,234
Denmark....................................................................
Prussia.......................................................................
Schleswig, Holstein, & Lauenburg.........................
Mecklenburg ............................................................
Hanse Towns............................................................
France........................................................................
Turkey, Wallachia, and Moldavia............................
Egypt.........................................................................
United States............................................................
British North America.............................................
Other Countries......................... ............................

FLOUR.

From nanse T ow n s................................................... cwts
Franc*........................................................................
United States............................................................
British North America.............................................
Other Count, ies.........................................................
T otal




1867J

C O U R SE

261

O F P R IC K S .

TOBACCO.

The imports, consumption and exports of tobacco in the twelve months
were as follows :
IMPORT.

Stemmed.................................................................lbs.
Unstemmed.................................................................
Manufactured and snuff..............................................

1864.
10,840,832
50,201,845
6,678,705

1865.
20,741,403
45,343,454
2,660,682

1866.
10,778,433
34,506,367
3,171,906

12,920,668
24,544,674
764,346

12,190,6'ft
26,165,576
12,190,629

14.178,618
25,931,968
8dl,575

789,760
13,039,806
3,448,473

324.533
16,077,976
1,547,543

583,214
17,975,795
2,005,152

QUANTITIES ENTERED FOR CONSUMPTION.

Stemmed................................................................ lbs.
Unstemmed..................................................................
Manufactured and Bnuff...............................................
EXPO RTS.

■stemmed.................................................................lbs.
Unstemmed.................................................................
Manufactured and snuff...............................................
SHIPPING.

The following figures relate to the shipping trade, so far as this country
and Great Britain are concerned:
AMERICAN VESSELS ENTERED AND CLEARED AT B R IT ISn PORTS IN TW ELVE

<--------Entered-------- ,
Number.
Tonnage.
1864 ......................................................................... 429
457,273
1865 ........................................................................ 343
362,760
1866 ........................................................................ 408
431,103

MONTHS.

,-------- Cleared--------,
Number. Tonnage.
434
458,990
394
397.017
507
513,614

VESSELS OF ALL NATIONALTIES ENTERED AND CLEARED AT BRITISH PORTS FROM AND TO
UNITED STATES PORTS IN

1864, 1865

AND

.-------- Entere ’ -------- ,
Number.
Tonnage.
1864........................................................................ 1,098
994,707
I860
671
728,399
1,394,179
1866......................................................................... 1,517

1866.
,-------- Cleared--------,
Number. Tonnage.
1,059
1,124,441
1,048
1,141,061
1,437
1,512,91,8

COURSE OF PRICES.
i
The course o f prices during late months has not been what would
be very generally supposed, from the dulness o f trade and the necessities
under which many holders o f products have been placed. Throughout
the interior there has been a protracted stringency in the money market,
and at this port a curtailment o f the usual facilities for credit, so that,
as a rule, stocks o f merchandise and produce have been carried with diffi­
culty. The state o f the politics and o f the trade o f the country has pro­
duced a very marked caution among lenders, which, in connection with
a chronic expectation o f lower prices, has naturally caused merchants to
realize upon their goods as early as possible, a course which has produced
a settled weakness in the market.
On the other hand, there has been a very general curtailment o f con­
sumption, especially o f those products least essential to subsistence and
comfort, The pressure o f taxation, the depression o f trade, and the ex­




262

C O U RSB

[April,

O F P R IC E S ,

haustion o f means following the extravagant expenditures growing out o f
the prevailing inflation, have necessitated among all classes a diminution
o f expenses, which it might be expected would produce a perceptible de­
cline in values. The general result, however, does not wholly correspond
with expectations based upon the operation o f these causes. The quota­
tions for some articles show a very important fall in prices ; but there
are notable exceptions to this rule, and especially in the case o f food
products. F or the purpose o f indicating the course o f prices within the
last twelve months, we present the wholesale quotations at New York of
certain leading articles o f consumption, giving in each case the average
price at the dates named.
W H O L rSA L E PRICES OF LEADING PRODUCTS AT NEW TORK MARCH
AND MARCH

Food P rod uct—
Batter, N. Y. fair................
Cheese, fact, dairies...........
Flour, R. hoop Ohio............
Wheat, Mil. Club................
Corn, mixed w estern........
Beef, extra mess, new........
Pork, mess, new..................
Lard.....................................
Rice, Carolina.....................
Sugar, granulated................
Salt, Worthington’s ............
Tea, Hyson, med...........
Coflee, Rio, prime (gold). .
Fish, ary coa.......................
Clothing Products—
Cotton, middling uplands...
Wool, Saxony fleece —
Flax, Jersey........................
Silk, Tsatlees, No. 1...........
Brown sheetings, standards
Print cloths 64x64
.........
Metals—
Copper, Portage Lake..........
Iron, Scotch pig..................
“ American pig...............
“ Kails, American..........
Lead, English (gold)... —
Spelter, plates, domestic...
Steel. American spring----Tin, English (gold)...............
Zinc, sheet............................
W oodsEastern spruce......................
Southern pine......................
Clear pine ...........................
Black walnut.......................
Miscellaneous—
Ashes, pearl, 1st..................
Coal, anthracite..................
Cordage, Manila..................
Feathers, P. West...............
Hair, Rio Grande................
Hay, North River................
Turpentine, Spirits.............
Rosin, No. 1..........
Oil, Olive, in casks,
“ w hale, refined
“ Lard................
*■ Kerosene.......
Petroleum, crude..
Rags, white, city...
Tallow, American.




1, 1866,

SETT.

1, 1866,

1, 1867.
Mar. 1, Sept. 1. Mar. I.
1860.
1866.
1867
$0 42* $0 35
$0 34
18
22
19*
8 60
11 00
9 40
1 65
2 10
2 00
78
80
1 08
22 25
18 50
22 00
28 00
32 75
20 75
18
12%
19%
12 50
13 25
10 37*
17
15*
16%
3 00
2 85
3 00
1 40
1 25
1 25
21
IS *
19%
7 50
7 ou
6 00
44
74
20
11 60
28
14*

32
63
21
11 00
23
is%

36
48 50
49 00
85 00
9 00
11
12
24

31
47 50
49 00
87 50
10 75
11
11%
21%
14%

24 00
60 00
90 00
112 50
11 75
10 50
23
60
29
83
91
4 35
10 50
1 70
1 50
1 85
66
29
13
12

22
45
90
110

50
00
00
00

13 75
8 50
23
82
34
87*
69
3 25
6 00
1 75
1 52
1 92
62
27
10*
12*

32
58
19*
12 00
22
11%
43
45
84
6

19
42
90
110

27*
00
50
00
90
9*
13*
22
12
75
50
00
00

12 25
7 25
22*
86
33*
1 40
71
4 60
6 25
1 60
1 (-2*
1 12*
52
17%
11%

1867]

CO U RSE

OF

P R IC E S .

2G3

The first class o f products comprises the chief expenditures o f the
household. In breadstuff's the advance since March, 1SG6, is very im ­
portant, averaging about 35 per cent., and goes far toward neutralizing
the decline upon other articles. In dairy products and beef and pork the
reduction averages about 20 per cent., while groceries show a fall o f about
10 per cent. Upon the whole, however, the house-wife would appear to
be able to supply her table at a lower cost than a year ago, the average
decline being probably 5@7-]- per cent.
In clothing manufactures and their respective raw materials the decline
has been most marked. Cotton has fallen within the year i2 cents ppr
pound, or 30 per cent., and domestic wool, o f Saxony fleece grade, 10
cents, or say 22£ per cent., while domestic fabrics have declined in fully
an equal proportion. W oolen goods, indeed, have fallen in a ratio be­
yond that o f the raw material, the production having been largely in ex­
cess o f the wants o f the country ; and manufacturers have consequently
sustained severe losses.
In the metal markets the fluctuations have been less marked than in
other products. P ig iron has fallen about $4 per ton, or less than 10 per
cent.; railroad iron brings nearly the same price as it did one year ago ;
steel is even higher, and tin shows but a nominal decline; while copper,
lead, spelter and zinc range 15@ 25 per cent, lower. Although the de
cline in this class o f products is not so general as might be desired, yet
it is sufficient to afford important relief to industrial operations by cheap
ening machinery and some o f the materials o f building. Similar relief
is also offered by the changes in the value o f lumber and staple woods
generally. From the quotations above given it will bo seen that, in
spruce and Southern pine there has been a decline warranting an im­
portant reduction in the cost o f the principal classes o f wood work,
although fancy woods maintain nearly old prices. In oils, which are by
no means unimportant in their relation to manufacturing processes, the
table also shows a similar movement towards lower figures. And, still
more important, coal, the chief source o f motive power, is but little over
two thirds the price at which it sold one year ago.
It will be apparent from this hasty survey that, although the decline
in prices has not been universal, and there are some important excep­
tions to a dowmvard course o f values yet, upon the whole, it has been
sufficiently broad to afford important relief to consumers at large and to
our depressed manufacturing industries. W ith the almost sole excep­
tions o f bread and rent, the working classes find a material reduction in
all their items o f expenditure, and are, therefore, the better prepared to
meet that fall in wages which the changed condition o f production and
values renders inevitable. In some cases reduction o f wages has actually
taken place within late months; but the price o f labor has not fallen so
generally, nor in such a ratio, as the value o f products. The inference is
therefore plain that, as capitalists are not making their usual profits upon
production, they will be necessitated to enforce lower rates o f wages.
Thi s is one o f the most essential measures toward a further reduction ot
th' scale o f values; and the labor market is evidently being prepared for
it. The number of unemployed workmen is on the increase, and very
many o f the factories have recently put their hands on short tim e; so
that the competition for employment must soon produce its natural
result.




264

DEBT AND

F IN A N C E S

O F SO U TH

C A R O L IN A .

[April,

The future o f prices is to a large extent dependent upon causes as yet
uncertain as to their ultimate development. If the seasons should prove
favorable to abundant crops, one great condition toward a further decline
in values will be insured. During last year the failure o f the wheat
crops o f Europe conduced to promote extraordinary high prices for
breadstuffs in the United States; and, with high prices for bread, em­
ployers have naturally been somewhat reluctant to cut down the pay
o f their hands. But with a plentiful harvest this year the reduction o f
wages would be only the more sweeping from the movement having been
deferred. The partial abatement o f internal taxes upon some leading
manufactures is in favor o f a limited decline o f values, while Congress
appears indisposed to favor any course tending to foster the prevailing
inflation.
It is not to be supposed that there will be any sudden or extreme fall
in values, except in the event of a general panic, a contingency which
there is no very obvious reason for expecting, and which, should it occur,
would have only a temporary effect upon prices. The causes chiefly reg­
ulating values are identified with the natural laws o f trade, which are
always steady and gradual in their operation; and b y the current mod­
ifications o f these influences, rather than b y temporary and extraneous
events, that we must be guided in our anticipations as to future changes
in prices.

DEBT AND FINANCES OF SOUTH CAROLINA, KENTUCKY AND GEORGIA.
SOUTH CAROLINA.

The public debt of South Carolina, as stated by the Hon. S. L. L e a p hart, Comptroller-General of the State, in his report to the Legislature for
the year ending Sept. 30, 1866, amounted, exclusive of past-due coupons
and interest, to the sum o f $4,426,440 46 ; or, including the military debt
contracted during the late war, to $6,668,280 46, and was thus accounted for:
S per cent,
ti do
5 do
6 do
t» do
ti do
ti do
ti do
ti do
ti do

ti do

6
ti

do
do

State Stock, redeemable at pleasure..............................
Stock (Fire LiOan), Act 1S38, re ’.eemable IStiO and 1870..
Bonds (
do
), Act 1838, sterling, redeemable 1868..
do (Blue Ridge), Act 1854, redeemable 1875-79...........
do (
do
), Act 1859
do
18155 .............
do (New State House), Act 1853, redeemable 1871..,
do ( do
do
), Act 1855
do
1881...
Stock (N. S. House), 1st issue, Act 1856, red’able 1877__
do ( do
do ), 2d issue, Act 1857
do
1888___
do ( do
do ), 3d issue, Act 1858 do
1883-85.
do ( do
do ), 4th issue, Act 1859
do
1887-89.
do ( do
do ), 5th issue, Act 1861
do
1882-S6,
do ( do
do ), 6th issue, Act 1863 do
1890___

Total Debt Proper.
6 per c Bonds (Military Defence), Act Dec., 1860, redeemable 1802-5
do (
do
), Act Jan., 1S61, red’able 1868-72...
7 do
do
\ Act Dec., 1861
do
1S68-72...
7 do Stock (
do
(
do
),
Act Dec., 1861
do
1867-84 .,
7 do

$38,836 60
318,159 35
484,444 51
1 ,000,000 00

310.000 00
250.000 00
250.000 00
250.000 00
300.000 00
400.000 00
400.000 00
400.000 00
25,000 00
$4,426,440 46
239,200
191,150
296,7-0
1,514,710

00
00
00
00

Total Military’ Defence Debt,

$2,241,840 00

Total amount

$6,668,280 46




1867]

D EBT A N D

F IN A N C E S

OF

SOUTH C A R O L IN A ,

265

The following statement gives the details of the several issues :
3 per cent. State stock, redeemable at pleasure
...............................................
6 do
Stock (Fire Loan), 1838, redeemable 1860..............................................
6
do
do
do
do
do
1870.............................................
5
do
Bonds,
do
Sterling, 1838, redeemable1868 ................................
6
do
Bonds (Blue Ridge RR.), 1S54, redeemable 1875....................................
6 do
do
do
do
do
do
1876 ....................................
6 do
do
do
do
do
do
1877 .....................................
6 do
do
do
do
do
do
1878..................................
6 do
do
do
do
do
f*0
1889 ....................................
6 do
do
do
do
1859,
,o
1865 ....................................
6 do
do
(State House), 1853, redeemable 1871.........................................
6 do
do
do
1855,
do
1881.......................................
6 do
Stock,
do
1856,
do
1877
6 do
do
do
1857,
do
1883........................................
6 do
do
do
1858,
do
1883........................................
6 do
do
do
1858,
do
1885........................................
6 do
do
do
1859,
do
1887........................................
6 do
do
do
1859,
do
1889........................................
6 do
do
do
1861,
do
1882
6 do
do
do
1861,
do
1886........................................
6 do
do
do
1863,
do
1890
6
doBonds (Military), 1860, redeemable Jan.,
1862 )
6
do
do
do
do
do
Jan., 1863 V...................................
6
do
do
do
do
do
Jan., 1864)
6
do
do
do
do
do
Oct., 1864.......................................
7
do
do
do
Jan., 1861, redeem .ble 1868....................................
7
do
do
do
do
do
1870.....................................
7
do
do
do
do
do
1872.....................................
7
do
Stock
do
Dec., 1861,
do
1S68.....................................
7
do
do
do
do
do
1870......................................
7
do
do
do
do
do
1872......................................
7
do
do
do
do
do
July, 1867, to July, 1883,
($84,070) annually................................................................................ _ .............
7 per cent. Stock (Military), Dec,, 1861, iedeemable July, 1884 ..............................

$38,836 60
3,705 46
314,453 80
484,444 51
200,000 00
200.000 00
200,000 00
200,000 00
200,000 00
310,000 00
250,000 00
250,000 00
250,000 00
300,000 00
200,000 00
200,00'» 00
200,000 00
200,000 00
200,000 00
200,000 00
25,000 00
139,200 00
100,000
9,650
56,500
125,000
28,280
193,500
75,000

00
00
00
00
00
00
00

1,429,190 00
85,520 00

Total ...................................................................................................................... $6,668,280 46

Besides this amount the State is indebted for an issue o f bills receivable
authorized by act of Dec., 1865, circulating as money and receivable for
taxes and all other dues to the amount of $147,000 ; but o f which to the
1st November $99,766 94 had been redeemed, leaving outstanding a bal­
ance of $47,233 06.
The interest due on the several classes of bonds to September 30, 1866,
was as given in the following statement:
lut.
“
“
“

on 3 per ct.
on 6
“
on 5
“
on6
"
on 6
“
“ on 6
“

State st’k .............
F. L. st’ k ......... ..
F. L. b’ds...........
S. H. b’ ds...........
S. H .st’ck ............
R. R. b’ds ...........

$3,638
49,742
18,477
144,290
278,612
224,025

8S Int. on 6 per ct. mint y b’ds............ $20,479 00
89 | “ o n 7
“
J a n . ’81............
54,431 71
66 I “ on 7
“
D ee.’SI............
59,386115
00 | “ on 7
“
Dec. ’ 61 .......... 324,004 6 <
85|
03 | Total on military debt.................$458,787 28

Total on debt proper.................. $77S,787 28 | Aggregate on both debts...............$1,237,0S9 56

The debt created for military defence, though still kept on the Treas­
ury Ledger, is not recognizable. Excluding this from the calculation the
total indebtedness on the 30th September last, with past due interest
amounted to $5,205,227 74.
By an act passed by the Legislature and approved by the Governor of
the State September 21, 1866, the past due interest and interest to accrue
on specified stocks and bonds up to July 1, 1867, and also the principal of
the bonds under act of December, 1859, issued in favor of the Blue Ridge
Railroad, redeemable January 1, 1865, were ordered to be funded. Ttie
following is a statement estimating the indebtedness of the State to July 1,
1867, on the bonds and stocks specified in said act.
VOL. LVI.----NO. VI.




17

266

DEBT AND

F IN A N C E S

OF SOUTH

[April,

C A R O L IN A .

Interest on $500,000, 6 per cent. State House bond*................................................ $100,700 00
“
on $1,715,000, 6
“
“
stock................................................
358,487*5
■“
on $1,000,000, 6
"
Blue Ridge R. R. bonds, 1854 ............................. 290,775 00
“
on $310,000, 6
“
44
“
1859..............................
81,150 00
Total debt for interest on specified bonds and stock...........................................
Principal o f 6 per cent. Blue Ridge Railroad bonds, 1859...........................................

$900,802 85
310,001 00

Total principal and interest to be funded..............................................................$1,210,802 85

There was no provision made by the Act for funding the interests due on
the stocks and bonds o f the Fire Loan, nor for the principal of the former,
redeemable in 1870, and of the L (ter in 1868. The interest due on these
securities on the first of October last amounted to $68,220 55. Governor
Orr recommends that the Legislature should grant authority to fund the
interest now due, and that which will accumulate up to January 1, 1868.
The following abstract from the general ledger o f the Treasury exhibits
accurately the financial condition o f the State as o f October 1, 1866.
DEBTORS.

Bank o f the State for capital.......$1,876,163 92
44
44
lor sinking fund 3,387,784 26
44
44 for redemption, &c.
39,200 00
. Treasury, State o f S. Carolina...
211,190 83
Shares in R. R. Companies.......... 2,668,800 00
Due by Sheriffs. Collectors, & c...
359,329 44
Sundries, dues & claim s.............
37,202 44
Balance against the State............
821,666 21
Total..................................... $9,421,337 10

CREDITORS.

Bank o f the S. for Current Fund..$1.178,973 60
Funded debt proper...................... 4,426 440 46
War debt.........................
2,241,840 00
778,787 28
Interest on debt proper...............
44 on war debt....................
458,787 28
Bil s Receivable o f the State.......
147,000 00
New State House Columbia........
13,916 60
Balances current accounts............
169,993 48
Total

$19,421,337 10

That many items in this account are merely book credits and debits is
obvious. From the creditor side must be deducted the military debt and
interest, together amounting to $2,700,227 28, leaving the absolute liabil­
ities of the State $6,721,109 82. On the other side there is no certainty
as to precise value which the various items represent. The State Bank is
insolvent and about to go into liquidation, while the railroad shares are
sadly depreciated, and at present have only a nominal value.
The resources o f the State for taxation, and the rates and amounts of
tax levied for the year commencing Oct. 1, 1865, are shown in the follow­
ing statement:
Valuation.
Rates. Tax levied.
15,516,362 acres o f land.......................................................... $48,087,8S9
15c$$100 $72,131 82
Lots and buildings in cities, & c............................................ 23,987,979 15c$$100
35,981 97
Capitation on 55,045 males bet. 21 & 65 years........................
100,090 $2$ head 110,090 00
2,364 04
Occupations..............................
394,007 60c$ head
Commissions of vendue masters,brokers, &c.........................
75,323 60c $ $100
451 93
Tax on 43,045 dogs.................................................................
43,045 $l$i head
43,045 (X)
Tax on Express Companies....................................................
2,000
...................
2 ,0 0 0 00
Premiums of State Insurance Companies...............................
9,587 $1 $ $100
95 87
do
Foreign Insurance C-unpmies.........................
163,840 $2 $ $100
3,27680
Capital stock o f gas light companies...................................
766,600 40c$ $100
3,06640
Sales of merchandize, <fcc., by residents..............................
6,210,956 20c $1 $100
12,421 91
do
do
by transient persons.........................
1,380 $1 $ $100
1380
Manufactures....................................
211,412 $11$ $100
2,11412
Spirituous liquors manulactured.. ...................................
9,711 $20$ $300
1,94220
do
brought into State.......... •. ...................
5,869 $ 2 0 $ 1 0 0
1,17380
Cotton on hand Oct. 1............................................................ 9,531,966 $1
$100
95,31966
Sales o f cotton from May 1 to Oct. 1,1865...........................
1,165,0 0 $1
$100
11,65080
Crude turpentine on hand Oct. 1 ..........................................
83,868 $1 $ $100
838CS
Sales o f crude turp. from May 1 to Oct. 1 ..................... .
24,302 $1 $ $100
24302
Arrears, double taxes, & c.....................................................
532
............................... 53296
Grand total, valuation and taxes................................... $90,885,436
..............
Amount deposited_by tax collectors.............................................................................
T o ta l gross,




$398,754 78
20,913 95
$419,668 73

1867]

D EBT

AN D

F IN A N C E S

OF

SO U TH

C A R O L IN A .

267

The receipts from all sources, and the expenditures on all accounts, for
the year ending Sept. 30,1866, are shown in the following statement:
RECEIPTS.

PAYMENTS.

Salaries............................................. $76,481 63
Free Schools....................................
5,579 4!)
Expenses issuing Bills Receivable .
4,436 12
Bank o f State, for loan o f 1865 ....... 74,125 00
And interest thereon.. ..................
3,931 10
5,000 00
$477,251 87 Deaf, Dumb and Blind....................
Lunatic A sy lu m ..........................
20,897 00
Balance, included in amount credit­
Temporary Log House Jails............
6,500 00
ed to Bank o f State, for Current
General Taxes Refunded................
2,478 02
Fund, as per statement o f " Debt­
ors and Creditors,” 30th Sept. ’66
184 00 State Printing................................. 17,446 66
Miscellaneous................................. 39,373 02
T otal..........................................$477,438 87
$266,248 04
Balance October 1 ,1SG6..................*211,190 83

Bills Receivable of the State, issued
under Act o f December, 2865........ $147,000 00
General taxes.................................... 330,215 27
Claims refunded...............................
39 60

T ota l......................... _>............ $477,438 87

The local taxes for the year, not included in the above account were :
Poor taxes, $57,387 6 4 ; public building taxes, $27,281 9 4 ; and road and
bridge taxes, $65,046 25— total, $149,715 83.
It will be perceived that the payments for 1865-66 do not include many
items of ordinary expenditures (as those of the Legislature), nor yet the
annual cost of the debt. These will come into the accounts hereafter, and
add largely to the disbursements. The above account therefore cannot be
taken as a proper exhibit of the actual resources or of the necessities of the
State, even at the present time, much less of the future.
The Governor in his message, and the Comptroller in his report have
each of them something to say on the financial condition of the State.
Both concur in the necessity for the settlement of all the interest accounts
by funding and the resumption o f interest payments. They join also in a
recommendation to the Legislature, that a sinking fund— say o f $100,000 a
year— should be founded for the final extinction of the State’s indebtedness.
Governor Orr thus presents the subject:
“ It is, however, eminently proper that some financial scheme should soon be adopt­
ed to prepare the State to meet the principal of the debt as it falh due. If the inter­
est is regularly paid on the debt, $100,000 annually set apart aB a sinking fund for
twenty years, invested in safe securities yielding 6 per cent, per annum, the principal
being further increased by the investment of the interest accruing, will accumulate the
sum of $3,899,312, which will be nearly adequate to the payment of the entire debt
then due, and I recommend that proper legislation be adopted at the present session
to inaugurate this scheme.”

The Comptioller General concludes his report with the following perti­
nent remarks:
“ The maintenance and preservation of the faith and credit of the State in her finan­
cial relations, will doubtless engage the earnest attention of the Legislature at the
present session. The reservation of a portion of her property and assets, or of her
annual income, for the liquidation o f her debt, will be recognized as the best evidence
that the State has both the means and the intention to secure the public creditor.
The establishment o f a new redeeming fund would, therefore, constitute the best
guarantee of her solvency and her good faith, the elements into which public credit
must be ultimately resolved. Should a new loan be deemed requisite to meet our
most pressing liabilities, the adoption of some measure to insure the punctual payment

* This balance, by November 1, had been reduced to $173,055 03, which was made up as fol­
lows : coin $212 75, U. S. currency $73,245 34, and State currency (bills receivable), $99,766 94.
T he bUls receivable are to be cancelled.




268

DEB'I A N D F IN A N C E S O F K EN TU C K Y.

[April,

o f interest and the final redemption o f the principal, would seem to be necessarily in­
dicated. That a loan, to the extent that may be actually needed, could be negotiated
on advantageous terms, notwithstanding the temporary embariassment of our finan­
ces, there is no reason to doubt.”

Thus we find the best feelings of the State authorities enlisted in favor
of the public creditors— a sure indication of a like healthy tone pervading
the general public.

KENTUCKY.

The funded debt of the Commonwealth of Kentucky, as shown by the
Auditor’s Report for he fiscal year ending October 10, 1866, amounted at
that date to the sum of $5,238,691.79, viz.:
pe cent, bonds and scrip, dne..................................................................................

6

“

“

“

due..............................................................................................

“

44

held by Board o f Education...........................................................

14

44

issued for unexpended county distribution and held by Board
o f Education..............................................................................

not d n e............................................................................................

Total public debt Oct. 10,1866,

$402 00
20,0i 0 OO
3,346,000 00
251.000 00
67,500 00
1,259,270 01
294,519 78
$5,238,691 79

The following is a detailed description of the several issues comprised in
the above aggregate amounts:
-------Principal.-------»,— Interest.— s ,---- Amount.-----,
Issued
in favor ofIssued.
Payab. Rate. Payable.
Issued. Outst’g.
Old issues, past due—
Now.
$609,500
$402
May & Nov. 100,000
—
7.000
Feb. 28,1835 .. Bank of Kentucky* — May 25,1835 30 years
.Prime, Ward & Kingt..Aug. 1,1835
“
Feb. & Aug. 100,000
4.000
Apr. & Oci. 100.000 95,000
Feb. 29,1836' . .Northern Bank o f Ky.i.Apr. 25,18S6 35 years
44
44
J.Jun el, 1836 30years
June & Dec. 50,000
9,000
April & Oct. 165.000 77,000
“•
Feb. 23, 1837! .U. S. WarDeparmentt.April 1,1837
Mar. 8,1843, .John Tilford, agent to
se llt...........................Sept. 2,1843
100.000 79,000
Feb. 16,1838. .Amer. Life Insur. and
Trust C o.t............... July 1,1838
“
Jan. & July. 1,250,000 874,000
Feb. 22,1839. .Contractors on pub-j Apl.22,’ 40to )
various.
33,000 27,000
lie w o rk
' st..............(
‘
1Feb.
Feb.19,
19,’41
’41 f
6 May & Nov. 235.000 188,000
Feb. 21,1840. .Northern Bank of Kyt..Nov. 4,1840
.Bank of Kentucky.t—
44
44
6
180.000 151,00C
.Contractors and in ex- ( April 8,1841)
change for 6 year-(
to
V “
6
various. 1,741,0001,421,000
bonds of 1840 ’44+.. ( April 1,1842 )
Board o f Educa., No. 1. .Aug. 9,1840
44
6 Feb. & Aug. 24,roo 24.000
No. 20.Jan. 6,1840
6 Jan. & July. 21,500 21,500
No. 21. Jan. 1,1840
“
6
22,000
22.000
No. 22. Jan. 1,1840 35 years 5
44
500.000 500.000
ft
44
No. 23. Jan.22,1840
170.000 170.000
No. 24. 44
5
44
180.000 180.000
N o .— .Dec.28,1848 pleasure 5
308,268 308.26S
N o .— .July 5.1850
44
5
101,102 101,102
July 1, 1866
44
6 “
294,520 294,520
Jan 30 1864.
various.
733,000
685,000
Feb 18 1864., .Military purposes..
[years.0 } 6
Date of
Act.

VALUATION AND TAXATION.

The taxable value o f real estate and personal property owned in the
Commonwealth in 1860 was $528,212,693, or, excluding the value of slaves
($95,588,479) $432,624,214. The valuation in 1865 excluding value of

Marked thus (*) are payable at the Bank o f Kentucky; thus (t) at New Y ork ; and thus ($) at
the Northern Bank o f Kentucky. All others are payable at the Treasury.




D EBT A N D

F IN A N C E S

269

O F K EN TU CK Y.

slaves ($7,224,851) was $352,492,310, and in 1866 $392,355,952, showing
an increase in the latter over the previous year o f $39,863,642. The
figures for the years 1865 and 1866 compare as follows :
Acres o f land................................................
Town lots.......................................................
Slaves.............................................................
Horses and Mares..........................................
Mules.............................................................
Jennies.........................................................
Cattle.............................................................
Stores............................................................
Value under equalizat’n law.........................
Carriages and vehicles for passengers........
Gold and other watches and clock s............
Gold and other plate.....................................
P ia n o s..........................................................

,------- Year 1865------- > ,---------Year 1866--------->
Number.
Value.
Number.
Value.
17,778,146 $197,676,721 19,655,443 $210,621,879
50,070
77,760,914
45,560
61,883,478
153,514
7,224,851
2 0 ,*319,404
299,160
16,641,815 ' 324,*623
66,876
4,890,762
58,273
4,176,248
3,744
157,685
3,933
167,528
559,308
6,987,026
520,798
6,267,247
6,115
20,392,370
4,280
16,527,915
........
47,102,390
.. ...
45,409,895
........
1,659,150
........
1,509.182
........
1,160,701
........
1,023,7 9
.........
481,071
....
500,3' 3
........
822,600
........
708,259

Total Valuation.........................................

........

$359,717,161

77. ...

$392,355,952

The following statement shows the objects of taxation and the rates and
amount of tax levied in the year 1866:
Tax on *392,355,952 valuation........................................................ 40 cts. per $100 $1,569,423 80
3,661 00
Tax on 3,661 dogs (over two not taxed)..........................................$1 each.
72.613 00
Tax on 145,026 enrolled militia........................................................ 50 cts. each.
3,925 2 7
Tax on $981,311, value o f property owned by negroes.................. 40 cts. per $100
70,334 00
Tax on 38,167 negroes over 18 years old........................................$2 per capita.
55,169 54
Tax on Auditor’s List...............................................................................................
Total taxes for 1866, for service of 1866-67..........................................................
Total taxes for 1865, for service o f 1865-66..........................................................

$1,775,026 58
1,496,318 95

l Increase o f revenue for 1866 over 1865 ................................................................

$27S,707 63

RECEIPTS AND EXPENDITURES,

The receipts and expenditures of the Commonwealth for the year ending
October 10, 1866, are exhibited in the following accounts:
Balance
Receipts
Total
Warrants
Balance
Funds.
Oct. 10,1865. 1865-66. Resources.
1865-66.
Oct. 10, 1866.
Revenue.......................... $19,302 41 $917.378 45 $936,6S0 86 $1,122,512 22 def.
$185,831 36
Sinking.............................. 105,03001 493,817 08 598,847 09
358,699 53 excess 240,147 56
School................................
37,0381)3 169,815 81 206,854 14
159,234 03
“
47,62011
Other..................................
27,21174 393,947 97 421,159 71
362,38181 “
58,77790
Total............................ $183,582 49 $1,974,959 31 $2,163,541 80 $2,002,827 59

"

$160,714 21

The tax on valuation for 1866-7, including the Auditor’s list ($55,165 54)
is estimated at................................................................ ........................................

$1,624,593 34

— from which must be deducted the following, viz.:
Amount paid in prior to Oct. 10,1866..................................................$191,030 34
Sheriffs’ com’ siotis, delinquencies, exonerations, «fcc.......................... 140,000 00 —
Leaving the sum available.............................................. ..................................

331,030 34
$1 293,563 00

The Revenue Fund for the support of the Government is entitled to
one-half of the amount o f the above tax........................................................ v iz .:
—and has other resources to the estimated amount o f............................ .............

$646,781 50
239,400 00

—making the total estimated receipts for 1S66-7.................. .................................
Estimated expenses for the year 1866-7........... .......................................................

$886,181 50
994,900 00

Deficit for year ending Oct. 10, 1867 ................................................ ..................
Add deficit for year ending Oct. 10,1866.................................................................

£104.718 50
185.831 39

Supposed deficit o f Revenue Fund Oct. 10,1867.

$290,549 86




270

D EBT A N D

F IN A N C E S

[April,

O F K EN TU CKY.

— which amount will have to be supplemented by loan or otherwise, as
the Legislature may direct.
The Sinking Fund, for the payment of the public debt aDd interest
thereon, receives three-eighths of the valuation tax, and has other resources
derived from dividends on stocks owned by the State, taxes on corporations,
taxes on billiards and playing cards, interest on deposits, &c. The property
and assets owned by the Commonwealth, and constituting the capital of
this fund were valued on the 10th October, 1866, at $8,150,072 09, viz.:
Stock in Internal Improvement Companies............................................................ $4,830,475 00
“
in banks and railroads...................................................................................
1,542,819 50
Loan to Revenue Department................................................................ $100,000 00
Interest on same....................................................................................
15,000 00—
15,000 00
Loan to Military Fund...............................................................................................
200,000 00
Deposit to credit in Farmers’ Bank o f Kentucky, bearing int’ st..........................
171,399 27
Amount in Treasury Oct. 10, I860..................................................... $1,054,230 76
“
“
“
“ (not transferred).........................
240,147 56— $1,290,378 23

— inaking the total nominal value, as above stated, 88,150,072 27.
The School Fund is entitled to one eighth of the valuation-tax, and also
to taxes on the capital stock of certain banks, fines and forfeitures for gam­
bling, the dog tax, &c. The permanent capital of the fund consists of
moneys invested in the bondsof the Commonwealth to the amount of $1,326,770 01 (see details in Debt Statement), and 735 shares in the Bank of Ken­
tucky valued at $73,500, making a total o f $1,400,270 01. O f the bond in­
vestments, $67,500 bear interest at 6 percent.and the remainder at 5 p .c.
REPORT OF THE COMMITTEE ON SINKING FUND.

The Committee on the Sinking Fund made a report to the Senate on the
2d of February, 1867, from which we extract the following:
The above debt wa9 created for purposes of improvement, for the payment of which
certain sources of revenue were set apart, constituting a fund to pay the interest and
sink the principal of the debt.
The Constitution forbids the repeal of the laws which constitute the resources of
that fund, and provides that they may be increased, but shall not be diminished until
the debt is paid.
RESOURCES OP THE SINKING FUND.

Amount in the Treasury on the 10th day o f October, 1866...................................... $1,050,230 76
Amount in the Treasury oil the 10th o f October, 1866, to be transferred to this fund 240,147 56
Amount borrowed from the Sinking Fund by the Treasury Department, with in­
terest up to October, 1867.........................................................................................
121,000 00
Amount borrowed by Military Board of Sinking Fund...........................................
200,000 00
Estimated amount to be received from 15 cents tax on $100 worth of property for
the year 1867........................................................................................................... . 485,086 00
Estimated receipts from other sources than 15 cents t a x ................... ........... ........
324,571 00
Total amount o f available resources to 1S68............................................................... 2,592,434 71
170,780 00
From that should be deducted interest for 1867..........................................................
Total sum which may be paid on debt in the year 1867..........................................$2.421,654 71
The present annual reliab o sources of receipts, exclusive o f interest on deposits
and receipts from forfeited lands..............................................................................

777,351 00

A tax often cents remains o f the increased resources o! the Sinking Fund fcr war
purposes. Five cents was levied betore the adoption o f the Constitution, and
cannot be repealed until the debt is paid ; hut if the Legislature think proper to
repeal the 10 cents tax, the annual resources o f the fund would be......................

487,866 00

The sum reported to be due from the General Government of the United States to
the State of Kentucky, as shown by the Governor’s message, is ......................... 2,438,347 91
That fund owes to the Sinking Fund charges above..................................................
200,000 00




$2,238,347 81

18671

D EBT A N D

F IN A N C E S

OF

271

G E O R G IA .

The bonds o f the State were issued dne in 15 and 20 years, chargeable to that fund,
for.................................................................................................................................

685,000 00

If it shall be the policy of the State to defer the payment o f those bonds to matu­
rity, there would be o f the war fund, if receive ! placed at the disposal of the
Legislature.................................................................................................................. 2,238,317 01
If thought best to pay them, that sum deducted............... .........................................
685,000 00
Leaves........................................................................................................................ $1,553,347 91

Colonel Pennebaker, the State Agent at Washington to attend to the liquidation of
that claim, gives assurances that accounts amounting in the aggregate to between
seven and eight hundred thousand dollars have been so far approved by the accountirg
officer as to give assurances that that sum will soon be placed to the credit of the State.
It will be seen that the sum on hand, at the close o f the year, lacks only $470,743
o f paying our actual indebtedness. The resources, exclusive of the ten cents tax,
amounts annually to $317,086 more than the annual interest, and will increase by the
amount of interest on each debt when paid. The above surplus would be applicable
next year to the payment of principal.
*
*
*
*
*
It is suggested for the c nsideration o f the Legislature the passage of a law direct­
ing that proclamation be made by the President o f the Board of Commissioners of the
Sinking Fund that the State o f Kentucky is ready to redeem all her bonds, irrespect
ive of their maturity ; that after maturity no interest will be paid ; and if not present­
ed for payment within one year after maturity, the State will regard them as lost and
cancelled ; and if presented after that time, will only be paid at the pleasure o f the
State. If it can be ascertained that an exchange can be effected, the fact should be
made known in the proclamation and published in papers in the localities where the
bonds are held.
The Sinking Fund was created for the purpose of paying the interest and principal
o f moneys borrowed for internal improvement. I f it shall be deemed to the interest
o f the State to enter on a general system o f improvement, or aid in the construction o f
leading lines of railroads connecting those now constructed in the State with those in
other States, or by diverging from them and striking in the direction of the Ohio, it will
be found that the present Sinking Fund, without additional taxation, is sufficient to
pay the interest on near or quite eight millions of dollars.

On this same subject we have received the following from Gov. Bramlette :
E

x e c u t iv e

D

epartm en t,

)

Feb. 15, 1867.)
The monthly report of the Auditor, ma le to this office on the 31st January, 1867
exhibits in the Treasury at that date the sum o f $2,026,100 30, being $975,861 54
more than at the close of the fiscal year (10th October, 1866), the date from which
the estimate in the foregoing report was made. There is still due from the sheriffs
and other revenue officers a large amount o f unpaid revenue for 1866. The entire in­
debtedness of the State is set forth in the foregoing report.
Taos. E . B r a m l e t t e .
F

rankfort,

GEORGIA.

The bonded debt of the State of Georgia, ? i existing on the 15th day o f
October, 1866, is made up of the following constituents, viz.:
Bonds issued in favor o f Western & Atlantic R B ...................................................
u
“
“
“ Atlantic & Gull R R ........................................................
Bonds under act of March 12,1866............................................................................

$1,942,000
734,000
3,030,000

Total outstanding October 15,1866.................................................................

$5,706,500

The issues under the authority o f the act of March 12th, were made (1)
for the repairs and equipment o f the Western & Atlantic Railroad
$1,500,000; (2) for, or in substitution of certain bonds authorized by the




272

D EBT

AND

F IN A N C E S

OF

G E O R G IA .

\April,

Convention of 1865, $100,000 ; (3) for the payment of the U. S. Land Tax
apportioned to Georgia, $600,000, and for the renewal of bonds past due,
and the funding of interest coupons 8830,550. These bonds are secured
by a mortgage of the Western & Atlantic Railroad, from the earnings of
which the interest at seven per cent, and a contribution to a sinking fund
o f three per cent, are to be paid annually until the bonds are redeemed.
The following is a statement in detail of the bonds outstanding at date,
as reported by the Hon. John Jones, State Treasurer:
Issued in
favor of—

Date of
-Bonds issueu-Interest.— No. Size. Ain’ t.. Rat( . Payable
issue.
.1848 353 $500 :$176,500 6 Jan. & July
1S44 26241,000 262,500 6
1839 30 £500 72,000 5 Mar. & Sep
1840 538 $250 134,500 6 Jan. & July
1841 232 250 58,000 6
1841 116 500 68,000 6
1841 38 1,000 38,000 6
1842 386 250 96,500 6
1852 200 500 100,000 7
18521.,050 500 525,000 6
1842 (
j Jun. &Dc.
Jan. 1843 1-172 250 43,000 6 j Jan. & July
il842 16 500
8,000 6 June &Dec
1842|• 35 500
17,600 6-i Jan. & July
1843 j
j June &Dec
1842 \
48,000
6-( Jan. & July
'
■
43
1,000
1843 j
1842 19 1,000 19,000 6 June & Dec
1843 34 1,000 34,000 6 Jan. & July
1844 48 500 24,000 6 May & Nov
1844 51 1,000 51,000 6
1848 176$ 1,000 176,500 7
, 1858 200 500 100,000 6 Feb. & Aug
“
“
“
Feb.1859300500 150,000 6
44
“
“
Aug.1859100500 50,000 6
41 “
“
“
“
Feb.1860300500 150,00) 6
“
“
“
Aug1860100500 50,000 6
“
“
“
Feb.1861200500100,000 6
44
44
44
44
Aug.1866200500100,000 6
“
44
44
44
44
Aug.1866345100 34,500 6
“
As per act March 12, J ........................ July, 18662,230 1,0002,230,000 7 Jan. & July
1866..................... } .......................... “
“ 1,600 500 800,000 7

Principal
payable.
July, 1868
July, 1869
Mar. 1869
Jan. 1870
Jan. 1871
Ja . 1871
Jan. 1871
Jan. 1872
Jan. 1872
July, 1872
June 1872
Jan. 1873
June 1872
June 1872
Jan. 1873
June 1872
Jan. 1873
J une 1872
Jan. 1873
May 1874
May 1874
May 1874
Feb. 1878
Feb. 1879
Aug. 1879
Feb. 1880
Aug. 1880
Feb. 1881
Aug. 1886
Aug. 1886
July 1866
July 1886

Included in the above list are the following issues, which are payable,
principal and interest, in the city o f New York. The Sterling bonds of
1839-69 are payable in the city of London. All other bonds are payable
in Savannah and Augusta, or at the State Treasury. The New York list
is as follows:
Bonds o f July, 1852-72...........................$525,000 Bonds o f Feb.,1861-81..........
Feb,, 1858-78......................... 100,000
“
Aug., 1866-86...---Feb., 1859-70......................... 150,000
“
Aug., 1866-86 ($100)
Aug.,1859-79 .........................
50,000
“
July, 1S66-86...........
Feb., 1860-80......................... 150,000
“
July, 1866-86 ($50 •)
Feb.,lS60-80 .........................
50,000
Total o f all bonds payable, principal and interest, in New York.

. $ 100,000
. 100,000

. 34,500
. 2,230,000
800,000
$4,289,500

All coupons due after August, 1866, are to be paid in currency at the
assigned agencies or at the State Treasury.
The available resources of the State consist of the Western and Atlantic
Railroad, about 137 miles, owned exclusively by the State, built at a cost
of $1,441,532 and valued at about $8,000,000 ; 8,345 shares in the Atlan­
tic and Gulf Railroad, and 186 shares in the Georgia Railroad. The un­
available assets o f the State consist of 1,833 shares of stock in the bank of
the State, and 890 shares in the bank of Augusta, and some remain of an
interest in the Central Bank. The valuation of property, real and per­




1867]

D EBT A N D

F IN A N C E S

OF

G E O R G IA .

273

sonal, owned in the State, not including slave property, was, in I860,
$369,627,722. The current valuation is not stated in the report from
which the present statement is made up; but whatever it may ber the tax
proposed to be levied on it is $450,000 a year, distributed ad valorem.
Besides this general tax several specific taxes are levied for the support of
the Government and other purposes. A capitation tax of $1 on every
male inhabitant between 21 and 60 years of age, and taxes varying from
$10 to.$25 on professions and specified employments. Gift enterprise
men are to pay $1,000 down before commencing business. Liquors pay
20 cents a gallon, but are exempt from the ad valorem tax ; and any
dealer failing or refusing to make true returns is fineable in the penalty
of $1,000. The law of March 3, 1866, indeed is remarkably severe, and
the oath required on disclosure of property so searching as to preclude
escape. The tax on incomes ordered by the convention of 1865, was dis­
continued by the Revenue Law ot 1866.
The receipts into the Treasury for the year ending October 15, 1866,
were largely from temporary loans and sales of bonds. The receipts from
taxes were light, and chiefly from banks, railroad and express companies
and foreign insurance agents, and the specific tax on sales of liquors which
is collected quarterly. The account current for the year ending as above,
is shown in the following schedule ;
RECEIPTS.

Balance Oct. 15,1885..................... $5,201,086 18
Temporary loan ...........................
657,424 20
General and income tax............... 1,456,602 67
Tax on railroads...........................
2,4S0 58
Western <&Atlantic R, R ............
75,000 00
Tax on foreign ins. comp.............
7,221 27
Specific tax on liquors.................
20,129 22
Sale o f State bonds...................... 1,004,293 08
Bonds of Atl. & Gull R R .............
134,500 00
All other sources.........................
10,205 07
Total...................................... $8,568,942 27

PAYMENTS.

Civil establishment, 1864.............
“
“
1S65..............
“
“
1866..............
Contingent fund, 1S66..................
Printing fund, 1866 ......................
Special appropriate, ’65.............
1866............
Temporary loan, 1S66..................
Legislation & convent’n .............
All other payments......................

$2,250 00
55,226 07
53,765 34
22,325 04
21,053 46
25,775 00
7,446,117 14
613,438 82
219,662 85
8,576 50

T ota l....................................... $8,497,190 2)

-leaving a balance as of October 15, 1866, of $171,752 05.
The probable resources of the State Treasury for the current year
(1866-67) are estimated at $882,252 05, and the expenditures at $879,705 06. The income from each source is thus estimated— general tax
$450,000; tax on banks and railroads, each $5,000, and on foreign
insurance agencies $10,000 ; tax on liquor sales $60,000 ; dividends from
Atlantic & Gulf RR. $20,000, and net earnings of Western & Atlantic RR.
$250,000. The disbursements include $100,000 for the Assembly, $76,000
for tlie civil establishment, and $307,000 for interest on the public debt.
There is also included in the estimate of disbursement $86,000 for repay­
ment of temporary loan and $106,805 06 for undrawn balances of old
appropriations— together $192,805 06 not belonging to the current year;
leaving the actual necessary expenses o f the State at $686,900.
From the exhibits above given it is quite apparent that Georgia is
rapidly recovering from the prostration caused by the late hostilities. A
State that is able to raise such a revenue as is here estimafed for, from a
population of less than a million souls, two-fifths the number only just
emerged from the condition of slavery, is a sure best of financial vitality.
No further loans are wanted ; all old accounts are liquidated, and once
again the two sides of the public ledger are balanced.




2 74

C H IC A G O

AND

[April,

A L TO N R A IL R O A D ,

CHICAGO AND ALTON RAILROAD.
The gross earnings from operations for the two years ending December
31, 1805 and 1866, compare as follows:
1865.
1866.
Increase. Decrease
Passenger traffic............................................. $1,604,188 01 $1,246,295 83
$ ........ $357,892 13
.........
Freight traffic................. .............................. 2,155,151 85 2,309,498 59 154,^46 74
U. S. Mail, Expresses, & c..............................
80,751 96
139,358 39 58,606 43
.........
Total gross earnings...................................... $3,840,091 82 $3,695,152 86 $ ................ $144,938 96
Total expenses................................................. 2,006,574 57 2,210,536 23 203,961 66 ...............
Earnings less expenses.....................................$1,833,517 25 $1,484,616 63 $ ............... $348,900 62

The earnings, expenses and profits from operations for the last six years
have been as follows :
Fisc Miles
year, o f r’ d.
1S61............................
1862............................
1863.-.........................
1864 .......................
1865 .......................
1866 .......................

220
220
220
257
280
280

,--------Result o f operations.------- * ,-----Result per mile.-----, Profits
Earnings. Expenses. Profits. Earni’gs. Expens’s. Profits, p. c.
$1,098,464
$646,372 $452,092 $4,993 $2,938 $2,055 41.15
1,225,001
767,207
457,794
5,567
3,487
2,080 37.36
1,673,706
971,840
701,806
7,608
4,418
3,190 41.99
2,710,4S4 1,532,105 1,238,379 10,780
5,961
4,819 45.03
3,340,092 2,006,571 1,833,518 13,714
7,166
6,548 47.75
3,695,153 2,210,536 1,4S4,617 13,197
7,895
5,302
40.18

The net earnings have been disposed of in the last three years, as shown
in the following statement:
Net earnings........................
Joliet & Chic. R.K., lease..
Alton & St. Louis R.R. l’e.
Improvements....................
Interest on bonds
.........
Sinking funds and tax.......
Dividends and tax..............
Balance to credit

1864.
1865.
1866.
.$1,238,379
$1,833,518
$1,484,617
$164,725
$140,289
$153,312
58.23S
42,664
11,760
70,000
407,447
221,707
283,185
281,182
280,700
34.362
31,575
57,138
286,712- 876,858 376,548-1,300,069 553,442-1,278,059
$361,521

$533,449

$206,55S

The surplus Jan. 1, 1866, amounted to $1,291,397, and Jan. 1, 1867, to
$1,497,955. This surplus is represented by—
Alton and St. Louis Railroad Company Stock.......... ........................................................$675,000
Bonds held by Trustees on renewal account...................................................................
50,000
Joliet and Chicago Pailroad Company bonds....................................................................
7,000
Chicago and Mississippi “
“
“
.....................................................................
2,500
St. Louis, Jacksonville and Chicago Railroad Company bonds........................................
15,300
Interest in Union Stock Depot, Chicago.............
........................................... ..........
50,000
Sums due this Company...................................................................................................... 165,478
Cash on hand—general fund................................................................................................. 439,455
Supplies on hand................................................................. ............................................... 436,139
$1,840,872
Less sums due others $342,917 ................................ ...................................................... $1,497,955

The general balance sheets, December 31, 1863-66, exhibits the finan
cial condition of the Company thus:
1863.
1864.
1865.
1866.
Capital Stock, preferred.............................................. $2,432,696 $2,425,576 $2,425,575 $2,425,576
common.
1,783,343 1,783,343 1,783,343 3,886,643
Bonds—Sinking Fund............................
585,000
554,000
519,000
483,000
“
Istmortuage............................ .
2.400.000 2.400.000 2,4( 0,000 2,400,000
1.100.000 1.100.000 1 , 100,000 1 , 100,000
11
Income............................ ..........
46,000 ' sTooo
Sinking Fund, bonds cancelled.............
' 15;000
117,000
134
“
“
cash.............................. .
575
85,00)
38,313
Bonds and Stocks unused.................... .
37,813
37,813
Renewal Fund, J. & C. R.R. Stock —
500,000
351,786
Alton & St. L. R.R. construction fund.
77,471
369,960
Current ac-ounts...................................
151,735
378,296
342,917
Income, surplus Dec. 31....................... .
349,742
741,236 1,291,398 1,497,955
T o t a l .......................................................




. $9,392,415 $9,896,563$10,008,224$12,290,904

1867]

C H IC A Q O

AND

ALTO N

275

R A IL R O A D .

Against which the following charges are made :
1863.
1864.
1865.
1866.
$8,281,639 $S,308,919 $8,308,919 $10,118,522
85.000
88.313
37,813
37,813
637,700
675,000
617,700
........
24,800
500,C00
11,400
........
135,614
50,000
50,000
120,000
50,000
451,934
436,139
286,993
166,881
.........
41,268
57,486
134
.........
575
78,639
50,0« 0
258.168
208,820
165,478
140,551
193,097
439,455
237,044
98,344
.........
158,083

Cost o f road & equipm’ s, (220 m’ s).
Bonds and stocks unused................
Alton & St. Louis HR. shares........
Railroad bonds (foreign)..................
Joliet & Chicago RR. shares...........
U. S. 7-30 notes $135,000..................
Renewal account, bonds in trust —
.ies on hand..............................
er land.....................................
Trustees Sinking Fund....................
Stock depot and grounds purchased.
Current accounts............................ .
Cash on hand, general fund............
“
“ special fund.............

S

,392,742 $9,896,568 $10,008,224 $12,290,904

Total.

The increased capital, as shown for 1866, was made by a distribution
of stock in February last to the amount of one share of common stock to
every two shares of stock, preferred and common alike, then outstanding,
at the uniform price to holders of $30 per $100 share. This realized to
the company of $632,915, which was set apart as a special fund to be
expended in new work and equipment, and to complete the purchase of
the Alton and St. Louis Railroad ; the sum of $135,614 50, the cost of
$135,000 U. S. 7-30 notes being retained for the latter purpose. Deduct­
ing this amount, and $339,217 82, expended on additional work and
rolling stock, there remains the sum o f $158,082 68, as shown in the bal­
ance sheet for future exigencies. The distribution as above was made to
cover capital expenditures from the income account.
Since the re-organization o f the company, in October, 1862, the follow­
ing dividends have been declared and paid:
Date of payment.
September, 1863
March,
1864
September, 1864
March,
1865

Pref.
3*
S%
3*
5

Com.
3#
6
5

Date o f payment.
.September, 1865
March,
1866
September, 1866
March,
1867 .

Pref.

Com.

5
5
5

5
5
5

3%

Total in four years and a h a lf.................... .................................. .....................
Stock (worth more than cash) distributed.......................................................

34
35

3%

33
35

— averaging, together, more than 15 per cent, per annum on the capital
invested.
The monthly range o f prices for the stocks of this company in the New
York market, for the last three years, is shown in the table which follows:
,--------------C o m m o n S t o c k ------------- »

1S64.
1865.
1866.
January............................ 81*@ 89* 89 © 92
103 ©105*
February..................... .
81 @ 90 90 © 95* 102 ©119
M arch .............................. 87 © 96* 80 © 90*
83 ©112*
April................................. 65 ©100 80 © 92
84 © 90*
May................................... 88 @ 97* 82*© 93*
91 © 99
Ju ne................................. 90 © 99
87 © 97*
95 © 99
July................................... 95 @ 98 90 @103
9SJ@105*
August.................... ....... 84 © 97
96 ©103102*©109
Scptemb’r ......................... 85 © 87 96 @101
105 @113*
October............................ 80 © 82 104 @106* 110*@113*
N ovem ber....................... 85 © 90 103 ©106
106 @113
December.......................... 89 © 93 104 @106* 108 @110*
Year................................65 @100




80 @106*

83 @119

,------------P r e f e r r e d S t o c k ------------,

1864.
94 © 96
92*@ 98
94 ©100*
95 ©100
94 © 96
95 © 97
93 © 98
92 © 97*
90 © 93
85 © 90
90 © 95
92 © 95

1865.
90 © 95
92*© 98
84 © 93*
85 © 95
91 ©107
92*©105
101 ©102*
96 ©104
97*©105*
105 @107*
104*@107
105 @107*

90 @100*

84 @107*

1866.
105 ©107
103 ©120
91*©118
93 © 96
100 ©101
102 ©102
104*@!06
105 ©109*
106*@113*
113 ©113*
109*©U3*
110*@111
93 @120

276

BO ST O N

AND

NEW

TORK

B A N K D IV ID E N D S.

[April,

BOSTON AND N EW YORK BANK DIVIDENDS.
Below we give tables showing the dividends o f the New York and
Boston Banks for a series o f years :
NEW Y O RK BANK DIVIDENDS.

Companies.
1860.
America............................. .
American..............................
American Exchange............ ............. 7
A tlantic................................
Bowery.................................
Broadway............................
Bull’s H ead......................... ............. 8
Butchers & Diovers...........
Ceutral.................................
Chatham.............................. .............. 7
Chemical..................... ........
Citizens’ .............................. ............. 8
C ity ...................................... .............. 8
Commerce................ ....... ............. 7
Commonwealth.................... ............. 7
Continental...........................
Corn Exchange.................... ............. 7
Currency..............................
Dry D o ck .............................
East Diver....... ................... .............. 7
Eishth National..................
Fifth National......................
First National......................
Fourth National..................
Fulton...... ....................... .
Gallatin................................. ............. 7
Greenwich............................
Grocers’ ................................
Hanover............................... ............. 7
Imp. and Traders................ ..............8
Irv in g ...................................
Leather Manufact’r’ s ............
Manhattan............................
Manufacturers......................
Manuf. & Merchants............
M arine.................................
M arket.................................
Mechanics’ ........................... ............. 8
Mechanics’ B. Assoc............. ............. 7
Mechanics & Traders........... ............. 8
Mercantile.............................
Merchants’ ............................ ............ 7
Mercha’ s’ Exchange.............
Metropolitan.........................
Nassau................................. ..............7
New Y o rk ............................ ............. 6
New York County............... .............. 7
New York Kxchange............ .............. 9
Ninth National....................
North A m erica.................... .............. 7
North R iv er......................... .............. 7
O cean................................... ............. 7
Oriental................................
P acific.................................. ............. 10
Park......................................
People’s ................................
Phcenix................................. ............. 7
Republic................................
St. N icholas......................... ............ 6 #
Seventh W ard.................... ............10
Second National..................
Shoe and L ather.................
Sixth National.....................
State o f New Y o r k .............
Tenth National.....................
Third Nat o n a l....................
Tradesmen’ s ......................... .............. 8
U nion...................................




22
15
T5
12
13
24
14
12
10
10
8
10

1866.
10
8
10
12
10
24
18X
10
12
16
24
10
12
10
12
10
10

Latest.
Jan., ’67. .5 & 3x.
Jan., ’67. .4
Nov.., ’66. .5
Jan., ’67. .6
Jan., ’67. .5
Jan., ’67. 12
Jan., ’67. .4&2*x.
Jan., ’67 5
Nov.,, ’66 .6
Jan., ’67. .8
Jan., ’67. .6
Jan., ’67. .5
Nov.,, ’66. .6
Jan., ’67. .5
Jan., ’67. 6
Jan., ’67. .5
Feb.,, ’ 67. .5

45
7
8

50
7
10

10

10
10
20
10
10
10

Jan., ’ 67. 10
Jan., ’67 3X
Jan., ’ 67. .5
Jan., ’ 67. .5
Jan., ’ 67. .5
Nov. , ’ 66. 10
Jan., ’ 67. .5
Nov. , ’ 66. .5
Oct., ’ 66. .5
April, ’66. .6
Jan., ’ 67. .5
Jan., ’ 67. .6
Jan., ’ 67.4&23-10X.
Jan.., ’ 67. .5
Feb.,,’ 67 .6
Feb.,, ’ 67. .5
Oct.,, ’ 66. .5
Jan., ’ 67. .5
Jan., ’67 G
Jan., ’ 67. .5
Jan., ’ 67. .5
Jan., ’67. .5
Jan., ’ 67. .5
Nov. , ’66. .5
Dec., ’66. .5
Jan., ’ 67. .5
Jan., ’ 67. .6
Jan., ’67. .5
Jan., ’ 67. .5
Jan., ’ 67. .9
Jan., ’67. .6
Jan., ’ 67. .6
Jan., ’ 67. .5
Jan., ’ 67. .5
Jan., ’67. .5
Feb., ’67. .5
Aug., ’ 66 .5
Jan., ’ 67. .7
Jan., ’ 67. .5
Jan., ’ 67. .5
Feb.., ’ 67. .5
Feb.., ’ 67. .5
Jan., ’ 67. .5
Nov.,, ’66. .5
Jan., ’ 67. .5
Nov.,, ’ 66. .6
Nov.,, ’ 66. .5
Jan., ’67 .5
Jan., ’ 67. .5
Jan., ’67 .7 #
Nov.,, 66. .5

1861. 1862. 1S63. 1864. 1S65.
7
7
8
8 10
..
4
3X 6
7X 9 10
10
io
8
10

io
8
10

ii
ii
10

7
7

7
7

7
8

io

30
4
10
10
12
10

20
12
10
6
9
10
fiX
24
24
24
24
8
8
7X 8
8
8
8
12
6
6
7
8
7
10
6X 6
3
6
7
8
7
7
9
IX
7*
7

8

..
io
ox

12
7
6X
7
6
10

9

10
3X
fix

7X
7
7

9
ox
«x

7
6
6

fix

7

7
fiX
fix
fix

10

io
6
12
7
6
fix

10
8

10
6
7
6
7
7
7

8

12
8

6X
IX
3X
10
10
7
8

9

9
8
8

10
10

3X
6
10

IX
7
6
fiX

10

9
10
10
12
10
11
10
5
10
10

8

9

10
12

10
16
11
15
10
10
10
10

7
8
9
7X
8
7X
10
10
8
10
10
7
9
OX
6
fiX
IX
6
9
ii
7
8
OX
6
I X 10
6
fix 11
14
7
61
fix

20

9
15
10
10
16

9

10
15
fiX 11
8

8
8
? X 10

15
20

20
22

8

8

9

7
7

7
6

7
7
7X
7X

8
8
8
8

10
20
10

5

io

8

8

8

5

12
10
10

9
io
8

fiX
10
8

9

6

fix

TX

10

5

9

7
6

6X
7

9

7X

11
10

16
10

io
12

9
ii
10
10
10
12
10
10
10
10
10
10
10
12
10
10
12
11
10
10
10
10
10
14
10
8

15
10
10
1C
10
12
10
10
10
15
10

1867]

REPORT

O F JA M E S

W . T A Y L O R TO

SECRETARY

m ’c

U LLO C H .

277

BOSTON BANK DIVIDENDS.

__,
Capital, ,---- ----- Dividends.
January, /—1864.—» ,—1865 —v ,—1866.—,
Banks.
1866. .Apr. Oct. Apr., Oct. Apr. Oct.
Atlantic National......................... .............. $750,100 3
4
5
4
5
5
Atlas National..............................
4
4 10
5
5
5
Hlackstone National...............
............ 1,000,000 5
5
5
5
5
5
Boston National...........................
3
4
4
4
5
5
(Old) Boston Nat. par 50.............. ............. 900,000 4
6
4
4 20
5
Boyiston National....................... ............. 500,000 5
5
6
6
6
5
Broadway National...................... .............. 200,000 4
4
4
5
5
5
City (National)
....................... ............. 1,000,000 4
4
4
4
4
4
Colombian National....................
5
5
3% 3% 3* 15
Commerce (Nat. Bank of)............ ............. 2,000,000 4
4
5
5
5
5
Continental'National.................... ........
500.000 4
5
5
5
6
5
Eagle (National).......................... .............. 1,000,000 4
4
4
5
9
5
Eliot National...............................
4
4# 5
5
5
5
Everett (National) ...................... .............. 200,000
New
3
3
Exchange (National)....................
5
6
5
6
6
5
Faneuil Hall National.................. .............. 1,0 0,000 5
5
5
5
5
5
First National...... .......................
5
5
6
6
6
6
Freeman’ s National.......................
5
4
4
4 25
5
Globe National............................................ 2,000,000 4
4 20 12
5
5
Hamilton National....................... .............. 750,000 8
6
7
6
6
0
Hide and Leather (Nat) ............... .............. 1,000,000 4
5
6
7
7
5
Howard National.......................... ............. 750,000 4
5
5
5
4
4
Market National......................................... 800,000 4 20
4
4
4
4
Massachusetts National................ ............. 800,000 4
5
4 10
5
5
Maverick National....................................... 400.000 3% 3% 5
4
4
5
Mechanics’ National.....................
5
5
4
4
4
5
Merchants’ National.....................
5
5
5
5
3# 4
Mount Vernon National................
5
4
5
5
4 # 10
New England National..................
5
4
5
5
5
5
North National.................. ........... ............ 1,000,000 3
5
4
5
5
5
N’ th America (Nat.Bk.of)............. ............ 1,000.000 3 * 3% 25+ 4% 4% 4V,
Pawners’ (d. July & Jan.)............. ............ 100.000 3
4
4
3% 4
3%
—
Redemption National....................
4
4
4
4
Republic (Nat. B'k of the).............
5
4
5
5
5
4%
Revere (National).........................
4
4 10
6
6
6
Second National............................
4
5
7% i x 7 * 7%
Shawmut National......................... ............ 750,000 4
4
4
5
5
5
Shoe & Leather National............. .......... 1,000,000 5
6
5
6
0
6
State National*..............................
4
4
4
3 # 13% 4
Suffolk National............................
4
4
5
5
0
5
Third National................................ ............ 300,000 (new)
4
4
8$ 4
Traders’ National..........................
3
3
3% s v 3% 3%
Tremont National......................... .......... 2,000,000 4
5
5
5
4% 4
Union (National).................. . . . . .
5
5
4
4 10
10
Washington National....................
4
4
6
5
6
6
Webster (National) .................... ............ 1,000,000 4
4
8 5 5 4

,— Price.— >
Jan., Jan.,
I860. 1867.
105
119
104
113
115
126
102
110
00% 66
125
136
100
105
103
110
107
116
116%
110
102
120
110
118
108
117#
98
101
129
140%
125
118
132
152
12J
110
120
130
116
123
141
127
106
100
109
102
115
107
100# 104
103
no
110
117
100
117
115
123%
100# 112
100
107
99
98
100
110%
112
127
It!)* 131
133
150
103% 133
127
132
103
110
110% 116
100
111
93
100%
110% 119
112
122
112
120#
103
107

REPORT OF JAMES W . TAYLOR TO SECRETARY MeCULLOCH.
(Continued from page 22!.)

The gold veins o f Virginia extend through Fairfax, Prince William,
Fauquier, Culpeper, Orange, Spottsvlvania, Louisa, Fluvana, Goochland,
Buckingham, and a few adjoining counties.
In 1837 Professor Benjamin Silliman published (Journal of Science,
first series, vol. 32. p. 98) the results o f a personal examination of mines
in the vicinity of Fredericksburg, of which a brief summary will be given.
He describes the gold-bearing quartz as embedded in talcose and mica
slate, principally the latter. In far the greater number o f cases the eve

♦ Colombia, 3 per cent, in gold, April, 1856. t North America, 25 per cent, in stock, no cash
dividend, April, 1868. %State, par 100, since May ; previously, 60. § Third National, for first
ton months. Pawners’ Bank, surplus oyer 8 per cent given athocrity.




278

REPORT

O F JA M E S W . T A Y L O R

TO

S E C R E T A R Y M’ C U LL O C H .

[April,

detects nothing but quartz, or sometimes metallic sulphurets of iron,
zinc, or lead, and the observer, unless previously instructed, would never
suspect the presence of gold, either distinct or in the metallic stilphurets.
In the vicinity of the quartz veins rich washings occur. In Spottsylvania
county, on a branch near the Whitehall mine, $10,000 was taken in a
few days from a space trventy feet square, and $7,000 was found near
Tinder’s mine, in Louisa county in the course of one week. It often
happened that successful alluvial mining preceded the discovery of vein
mines. Of the latter several are described .
1. Busty's Mine, situated fifty miles from Richmond and fifty-three
miles from Fredericksburg, in solid quartz veins, fifteen to eighteen inches
thick, at depth o f twenty-two feet; structure of vein coarsely granular,
like loaf sugar, free from foreign matter except inherent gold, and so
white that even when pulverized it showed no tint o f color; yield on one
trial $80 per ton ; on another trial $240 per ton.
2. Moss mine, near the above; situated in decomposed slate-rock ; sur­
face of vein little else than red clay, but firmer, and stratified below ;
inclination of rock and included quartz vein about 4 5 °; direction by
compass north by east, and south by west; diameter o f vein sixteen,
eighteen, twenty-four, twenty-seven, and thirty inches, averaging twentyfour inches; quartz laminar, easily broken and separated from slate by
blasting, but showing no signs of gold, though examined by a magnifier;
three tests returned $100, $140, and $200 per ton, yet in neither case was
gold visible in quartz or ore.
3. Walton Mine, situated in Louisa county, forty miles southwest of
Fredericksburg ; quartz vein firm and com pact; one foot wide ; occasion­
ally porous and interspersed with iron pyrites and a dark iron ore, proba­
bly proceeding from their decomposition ; penet -ated by two shafts of
seventy and forty feet; first trial o f pour ore, $80 ; second trial of average
ore, $160; third trial of ore taken at random, $40 0 ; fourth trial of
specimen, showing gold to the naked eye, $2,660 per ton ; average of
the series of assays, $820 per ton.
4. Culpepper Mine, situated eighteen miles west of Fredericksburg, upon
the Rapidan ; a tract of 524 acres; hydraulic power fo ra twenty-stamp
m ill; four adits with connecting shafts ; main vein ten feet wide, but prone
to divide into strings not larger than a finger, nearly parallel and separated
only by portions of the slaty ro ck ; gold more abundant in these strings
than in larger veins; much iron accompanying the ore ; pulverized quartz
always ied or brown; iron pyrites in some places fresh and brilliant, else­
where decomposed; strata nearly perpendicular ; specimens from fourteen
localities, mixed together, returned $30 per to n ; specimen from a vein
considered rich, but showing no sign o f gold, gave $30 per ton.
In the following paragraph, Professor Silliman only anticipates the
experience of miners at this day :
“ Gold is often found in pyritical ores in which the gold is embedded
in fine particles. This mass when reduced to fine powder gives a residium
of oxidized iron about equal in weight to the fine gold, the latter being
malleable or flattened, while the former, being brittle, remains rounded
or angular. In washing this mixture in the pan the gold generally
remains on the upper side o f the mass, and is therefore more liable to be
washed off by the slightest ripple of the w; cer. On the other hand,




1867]

•

R E PO R T

O F JA M E S

W . TAYLOR

TO

SE CR ETA RY

m ’c

ULLOCH .

279

when the gold is embedded in quartz ores, especially those with fine
fractures, called in Virginia 4 sugar ore,’ or more properly granular quartz,
the gold being of a similar form, is more quickly disengaged, and appears
in larger grains.
“ On the contrary, the ferruginous grains, or iron sand, are so fine as
to be scarcely visible, and are invariably found at the bottom of the mass
or residium, and therefore, as well as on account of their greater weight,
are much less liable to be carried off by the ripple of the waters.”
Several successful instances of alluvial mining near the Rapidan are
also mentioned; on a Hempstead farm, §4,000 in 1831-’32, o f which
nearly $3,000 in sixty days; another instance two or three miles from
Rapidan, $12,000; a "third, $40,000; all in the vicinity o f the Culpepper
mine.
The most remarkable o f the foregoing statements relate to the assays
of ores from the Walton Mine. Prof. Rogers, o f the University of Vir­
ginia, inspected this mine in 1836, and ascertained that in the lower adit
leading from the main shaft, the auriferous vein was twelve inches in width,
and that the talcose rock underlying the vein was also auriferous to a dis­
tance of six inches, and sometimes more, from the quartz. He also
observed the continued yield from the quartz, and the uniform dissemina­
tion of the gold throughout the vein, and the lower enclosing rock. A n
assay o f Professor Rogers returned $280 per ton.
A writer in Harper’s Monthly Magazine for December, 1865, describes
the gold mines in the vicinity of Richmond; having previously given
some general information of the conditions under which gold has been
discovered and mined. “ Sienite, gneiss, greenstone, and porphyry,” he
says, “ appear to be the primary sources, and the pyrites are evidently
the immediate matrix of gold. All iron pyrites contain gold, and often
silver, only excepting those of the coal formation; and the extensive gold
deposits of Virginia may be said to be literally one continuous belt or
accumulation of veins o f iron pyrites.
“ Most o f the gold-bearing rock which has hitherto be enmined in
Virginia is principally a kind of talcose slate, somewhat resembling soap­
stone, but not so greasy to the touch. This slate is red and ferruginous
at the surface, but at a greater depth is filled with small crystals o f
iron pyrites which are decomposed near the surface and appear as peroxyd
o f iron, giving the slate a brown or yellow tinge. This slate is a metamorphic rock, and runs in a regular belt parallel with the Alleghany
mountain chain.
“ The gold found in the State of Virginia occurs in exceedingly small
grains, often so fine as to be not only invisible to the naked eye, but undiscernible even by the assistance of a strong lens. This is the case
even when the ores are worth three or four dollars per bushel. Some
veins of the slate region contain coarse gold in grains as large as the head
o f a pin, and even larger. These are generally found in veins of quartz
in which the pyrites are concentrated into larger masses. Where the
pyrites are disseminated in fine crystals through the mass of the rock, the
gold is found to be very fine. In the first pyrites the gold is often invisi­
ble, even if after separation it appears to be coarse. By natural or artifi­
cial decomposition the gold becomes visible, the pyrites are converted into
oxyd of iron, and, by aid of a lens, the gold can be detected embedded




280

REPORT OP JAMES W. TAYLOR TO SECRETARY

m ’ c ULLOCH.

[April,

in the oxyd o f iron. Another form in which the native gold is not unfrequently found in Virginia is in quartz, in which it is embedded. Solid ,
white quartz, both in veins and in crystals, is found, in which the gold
appears in spangles, plates, grains, and also in perfectly developed crystals.
Throughout the gold regions o f Virginia copper pyrites are found in all
the metallic deposits. It invariably accompanies the gold-bearing iron
pyrites, and is always considered a good indication o f richness. Cases
have often occurred in which the largest amount of treasure has been
abandoned, because the miners had not the knowledge, of proper appli­
ances for separating the precious yield of gold and copper.”
The writer of the article here quoted proceeds to give many interesting
details of the gold mines o f Goochland, Buckingham, and Fluvana coun­
ties. Among these are the Belzoro mine, developing seven veins, which
vary in width from two feet six inches to thirty feet; Marks mine, with
four gold-bearing quartz veins ; Waller mine, vein of brown oxyd of iron,
six feet thick; Tellurium mine, sold in 1848 to Commodore Stockton,
who is reported to have extracted $>250,000 in nine years; Snead gold
mine, of three viens, one of them being four feet wide, and composed of
white quartz, which contains argentiferous galena, copper sulphates, and
gold : Ford mine, revealing copper pyrites largely; and Liglitfoot mine,
with four well known and very rich veins ; all o f which have been worked
successfully at different periods since 1828.
The mineral wealth of Virginia in other respects is unsurpassed by
Pennsylvania or any part o f the Union.
NORTH CAROLINA.

The gold district of North Carolina extends from northeast to south­
west in the general direction of its leading counties, namely : Guilford,
Randolph, Davidson, Rowan Stanly, Cabarrus, Mecklenburg, and Union.
In 1825 Professor Denison Olmstead designated as the district within
which alluvial mining was prosecuted, the counties of Montgomery and
Anson, and the eastern portions o f Mecklenburg and Cabarrus as then
organized. Gold was first discovered in a “ thin stratum o f gravel enclosed
in a dense clay, usually of a pale blue, but sometimes o f a yellow color.”
This description is easily recognizable as the detritus o f the gold bearing
rock afterwards discovered further to the west. Many facts of the early
success of placer mining on the tributaries of the Pedee might be adduced,
but it must suffice in this connection, to repeat from Wheeler’s History of
North Carolina an enumeration of the nuggets which have been obtained
since the first discovery in 1799 :
P o u n d s . 11 Y e a r s .

Y e a rs.
) 7 Q 9 ............

....................................4

l a n a ...........

...................................2 8

|

1 R 0 4 _____
\ js0 4 * _____

Pounds

1 8 2 6 ..................................... ......................................... 16
j 1 8 2 6 ...................................... ..........................................9 $
1 8 2 6 ..................................... .........................................

s"

1 8 3 5 ..................................... ..........................................1 8 £

...................................7

i

1 S04.

................................... 2

i | 1 8 3 5 ..................................... ......................................... 5 "

1 8 0 4 ...........

................................... H

1 R 0 4 _____

1 8 3 5 ..................................... ......................................... 4 $
| 1 8 3 5 .....................................

No more intelligible account of the placers of North Carolina exist than,
the communication of Professor Olmstead in 1825, from which a few




1837]

REPORT OP JAMES W . TATLOR TO SECRETARY

m ’ c ULLOCII.

‘2 8 1

paragraphs will be given. After describing the gold-bearing alluvium as
“ gravel enclosed in pale blue or yellow clay,” he adds: “ On ground that
is elevated and exposed to be washed by rains this stratum frequently ap­
pears at the surface, and in low grounds, where the alluvial earth has been
accumulated by the same agent, it is found at the depth of eight feet; but
where no cause operates to alter its original depth it lies about three feet
below the surface.
A miner sometimes meets a stratum of the
ferruginous oxide of manganese in a rotten, friable state. In some in­
stances the clay is deep red.”
Very soon, however, these, gold deposits were traced to the auriferous
lodes traversing a belt of talcose, micaceous, chloritio, and hornblende
slates, which passes through several counties on the east side of another
belt of granite and west o f one o f trap. These veins, as early as 1828,
were described as follows by Charles E. Rotbe, a miner and mineralogist
from Saxony: “ They occur in greenstone formation often from two to
four feet in thickness and a mile or more in length, which give assurance
that they sink to a considerable depth. Their general direction is east
and west, dipping occasionally 40° to 50° north. The ores and minerals
in these veins are rhomboidal iron ore, prismatic Iron ore, pyramidal cop­
per pyri tes. and prismaticiron pyrites. In the last two is a mechanical
mixture with each other. They show distinct signs o f having been
changed from their original form. Where the atmosphere could have
any influence on the pyrites we find that one part of the sulphur has
escaped, the consequence which is, the metallic appearance of the pyrites
is changed to that of brown-reddish oxide of iron, and owing to this color
we can see the fine particles of gold, and ascertain the richness o f the
deposit. But where the pyrites have not undergone this change, then the
gold cannot be discovered, owing to the color being nearly the same. The
greenstone near the vein is most generally decomposed, and mixed with a
great number of loose crystals o f prismatic iron pyrites. Between the
greenstone and the vein, or at the place of junction, the gold is most
generally found.”
The gold district of North Carolina is the second belt of the table-land,
its positions moderately elevated, and it is very seldom that the highest
hills of Davidson, Randolph, Rowan, Cabarrus, and Mecklenburg counties
are traversed by vein fissures.
In 1856 a report by Ebenezer Emmons, upon the geology of the mid­
land counties of North Carolina, was published, which gives a detailed de­
scription of thirty mining localities. Abstracts of his observations upon
the leading mines of Guilford, Randolph, Davidson, Rowan, Stanly,
Cabarrus, Mecklenburg, and Union counties will best illustrate the char­
acteristics o f the auriferous belt through the State. The order in which
these counties are named coincides with their geographical position, com­
mencing on the north :
1.
McCulloch Mine, in Guilford County, brown or desulphurized ore, to
a depth of one hundred and thirty feet; vein two feet wide at surface, in­
creasing to twenty-four feet, with a dip at angle of forty-five degrees;
brown ore, soft and easily crushed, yielding $30 to $40 per ton, and some­
times $100 ; at level of one hundred and thirty feet, there are six inches
brown ore on foot-wall, then copper pyrites, then a belt o f brown ore con­
taining nodules or concretions of pyrites more or less changed the middle
18
V O L . L V I . VO. V I .




282

REPORT OF JAMES W . TATLOR TO

SECRETARY

m ’ c ULLOCH.

[April,

of which is rich in gold, and then the principal mass of porous quartz
against hanging wall, which, though sometimes showing films o f gold, is
usually'poor ; wall rock, sienitic granite.
2. Fisher H ill, in Randolph County ; veinstone quartz, with white sulpliuret of iron mixed irregularly through i t ; free from copper pyrites;
burnt to advantage; two to four feet wide near surface; brittle, and when
burnt easily pulverized ; average sixty dollars per ton, and gold worth
ninety cents to pennyweight.
3. Conrad H ill, in Davidson County, six miles east of Lexington CourtHouse ; situated eighty-eight feet above plain to the south ; five goldbearing veins from eighteen inches to two feet at surface ; third vein fifteen
inches at surface, widening to eighteen feet at depth of one hundred feet,
and finally developing sulphurets of iron and copper rich in gold ; only
four feet rich in gold ; wall-rock talcose slate, but adjacent country
traversed by trap.
4. Gold H ill, on southern border of Rowan County ; product to 18S6,
$2,000,000; three strong and well-defined veins, one mile east of granitie
b elt; angle of dip 80° ; strata undisturbed by eruptive rocks; veins
associated with sulphurets ot iron and copper; Earhardt vein worked 400
feet, expanding from six inches to seven feet, a succession of lenticular
segments overlapping at their edges ; chief difficulties, fineness of gold and
heavy sulphurets ; if sand saved and exposed for a year the sulphurets are
decomposed and metal liberated ; in 1854 $136,636 76 obtained in thir­
teen months from Gold Hill, expenses $60,331 06, profit $76,305.
5. Parker Mine, in Stanly County ; most productive parts of rock are
natural joints or quartz seatr.s ; pieces in proximity to natural joints some­
times weighing a pound , “ not a vein, but a decomposed mass with gold
distributed in s '- .u i s h a s produced $200,000; some masses at rate of
eighty to one hundred dollars per ton.
6. Reed Mine, in Cabarrus County ; productive alluvial mining, as
already stated ; a vein at depth of ninety feet yields twenty-two dollars
per ton. A Phoenix mine, in Cabarrus, was rich to 140 feet, twenty to
sixty dollars per ton ; but at that level white quartz and sulphate o f barytes
replaced the brown ore, reducing yield to five dollars per ton. The Pioneer
mine, also in Cabarrus, is a fissure in granite sixteen to seventeen feet
wide, but true veinstone eight to ten inches ; gold in pure quartz mixed
with sulphurets; yield sixty-three dollars per ton.
7. Howie and Lawson Mine, in Union County, near the line of South
Carolina; fine, white, and granular quartz which near contact with slatewall rock is mottled with brown oxide of iron; on this surface gold
visible; width of vein six to thirty inches; average sixty dollars per ton;
some specimens two hundred and twenty dollars ; traced three-quarters of
a mile ; sold in 1856 to Commodore Stockton.
8. Rudisill's Mine, near Charlotte, Mecklenburg County ; three veins,
three or four feet wide; gangue slaty, with stripes of quartz and copper
pyrites, yielding twenty dollars per ton ; quartz brittle and readily crushed ;
arrangement o f ore in the lode is usually in rich bunches, connected by
strings.” Dunn Mine, seven miles from Charlotte, remarkable for limonite
produced from iron pyrites, but unproductive o f gold. The gold in the
vicinity of Charlotte is worth one dollar the pennyweight.
Copper mining has also received attention in North Carolina— the most




1867J

REPORT OF JAMES W . TAYLOR TO SECRETARY

m ’ c ULLOCH.

2S3

persistent and prosperous enterprise o f the kind being in Guilford County.
The “ Washington silver mine,” in Davidson County, produces a great
variety of metals in association with silver, which are difficult to treat
metallurgically ; but the attempt will doubtless be resumed with the aid
o f improved methods of amalgamation.
The mineral wealth o f North Carolina is by no means confined to the
eastern slope of the Blue Ridge. W est of that range, between the Snowy
Mountain and the Blue Ridge, and its transverse from the upper waters* of
the French Broad River to the Lookout Mountain, containg 5,000 square
miles, there is a field, presented to the mineralogist not perhaps equalled
for extent and interest in the United States. Smoky Mountain constitutes
the line between primitive and transition rocks, and its acclivities are steep
and broken, developing familiar auriferous combinations. Gold has been
taken from all its streams ; and where the spurs and belts of this mountain
have been cut by denudation, veins and quartz running with talcose slate
are very apparent. Gold is often found in quartz rock, out of place, and
much decomposed. Coco creek is a very rich deposit. Rumors of silver
deposits were current in the army during the late military campaigns.
This remote interior district will amply reward exploration.
SOUTH CAROLINA.

The auriferous belt already traced from Fredericksburg to Charlotte ex­
tends to the vicinity of Abbeville, in South Caroliua— more restricted in
width, but with indications o f greater richness.
Mines of Mr. William Dome, in the Abbeville and Edgefield districts,
yielded gold of the value o f 1300,000 in fifteen months preceding July,
1853. The ore was highly ferruginous and silicious, and the gold was
found among the layers of the vein in streaks and pockets o f extraordi­
nary richness. It was supposed to have been exhausted ; but during I860
work was resumed with satisfactory results.
Professor Lieber, State geologist of South Carolina, has reported that
the most auriferous rocks are clay and talcose slates, catawberite, (a com­
pound of talc and magnetic iron,) specular iron, schist and itaberite. None
o f the later formed rocks contain gold, and the mica slates, and other
older formations contain comparatively little. This is in accordance with
the views of Murchison, already referred to, who refers the position of
gold universally to veins in altered silurian slates, chiefly lower Silurian,
and most frequently near their junction with eruptive rocks.
The first mint deposits from South Carolina were $3,500 in 1829; the
aggregate of such deposits to June 30, 1806, was $1,353,663 98.
GEORGIA.

The width o f the gold range through the Southern States is not yet
defined. If narrower in South Carolina, it is wider in Georgia than else­
where. A line crosses the State from Augusta on the Savannah, by Macon
on the Ocmulgee, to Columbus on the Chattahoochee, north of which is
a platform of granitic and palaeozoic rocks, which stretches to the Alleghanies, within which gold occurs in almost every county. Near this
southern limit a gold mine has been worked in Columbia County, not far
from Augusta, which has been continously productive for eighteen years.




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Blit with this breadth to the general auriferous formation, there is evidence
o f two belts, which are separated by unproductive metamorphic rocks.
Probably the district of Georgia and Alabama, which is most distinctly and
remarkably gold-bearing, is from latitude 34° to 35° and between longi­
tude 83° and 86°.
Gold was first discovered in Habersham County about 1831. It was
followed by numerous developments along a line of hornblende slate from
Alabama, northeast through Cass, Cherokee, Hall, and Hart counties, and
extending to the Blue Ridge. Within this limit are the productive
counties of Gilmer, Lumpkin, Habersham and Rayburn.
A mint was established at Dahlonega, in Lumpkin County, in 1837,
which has received 1600,000 in a single year, with an aggregate coinage
to February 28, 1861,’ of $6,121,919. Of this amount, $5,825,747 wai
received during the period from 1838 to 18S7.
Placer mining has been prosecuted in northern Georgia in a manner
and with a success not unlike the experience of California. Besides the
true veins, which traverse the strata in which they lie in various angles of
dip and direction, there are manj depositories o f gold in all directions
around Dahlonega, which are auriferous beds of slates, often decomposed,
and sometimes containing pyrites, and the gossan resulting from its de­
composition.
In Lumpkin and Habersham counties especially, these
metalliferous beds have been worked like open quarries, and the gold, in
some instances, has been collected with the rocker or the pan, without re­
course to crushing ; worked, in lact, like deposit mines. They contain rich
nests and fine gold, most unequally diffused through the different layers
among the slates; some are perfectly barren, ip immediate contact with
other streaks that may yield many dollars to the hundred-weight of ma­
terial; but they are so intimately mixed that all must be treated alike
when worked on the large scale. The immense quantities in which these
materials are obtained, and the ease with which they are quarried, some­
times render it an object to work them, though their yield is, on the whole,
very small. These conditions are very favorable to the application of
hydraulic mining, as carried to perfection in California.*
Waiving further details, the following general observations may ac­
company this brief review o f the Alleghany gold mines:
1.
There is yet much room for the vigorous and intelligent prosecution
o f alluvial mining. Especially in Georgia, where the country is abrupt
and nature has subjected the auriferous rocks to much dislocation and at­
mospheric exposure, not only the beds o f the rivers, but the adjacent
detritus of their valleys, will unquestionably give large returns to the new
and powerful methods for washing poderous masses of earth. It is under­
stood than companies are now organized, who propose to introduce these

* See article “ Gold,” in Appleton's American Cyclop rcpia, The writer, who refers
lo his personal experience in Georgia mines, adds that wLen the ores are not pyritiferous, and there are facilities for stamping such as are used in cement mining by
Californians, these materials can be profitably woiked, when only producing eighty
cents or one dollar per ton. or 1.8 part in $ 1,000,000 ; but, of course, where the ma­
terial is hard quartz, and more especially if it is pyritiferous, the expense of working
would he more than quadruple. Prof. W. P. Blake in 1867 published a pamphlet,
advising the improved methods o f sluice-washing for use in Georgia.




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hydraulic appliances upon the Chestatee and other tributaries of the
Chattahoochee River.
2. There is abundant evidence also that the upper portions of auriferous
lodes have been in a remarkable degree desulphurized, and may be worked
to a considerable depth with great advantage before the intrusion of what
is called “ cap” in Colorado, or before the main body of the vein becomes
obstinately pyritiferous. Surface quartz mining, if the phrase is admissible,
will warrant considerable investments, whatever subsequent experience shall
demonstrate in regard to the refractory sulphurets. It may be admitted
that, hitherto, a quartz so modified in chemical constitution as to be
“ honey-combed,” having become cellular and brittle from the decomposi­
tion of pyrites, with the gold set free from its matrix, is the only material
which it is profitable to reduce; but the testimony is ample that immense
quantities of ore in this favorable situation are accessible in the Alleghany
gold district.
3. There are no grounds for the opinion that the auriferous lodes, strongly
marked as they are by native sulphurets, will not prove true fissure veins,
improving in quantity and quality with their depth. Professor Frederick
Overman, in a work entitled “ Practical Mineralogy,” published in 1851,
claims that the pyritous veins of Virginia and other south Atlantic States
will be more sure and lasting than the gold-bearing localities of California.
If the lower beds of Colorado mines can be raised and reduced with profit,
deep sinking will be equally successful in the Carolinas.
NEW HAM PSHIRE AND OTHER LOCALITIES.

In the townships o f Franconia and Lisbon, lying immediately north of
Mount Washington on the lower Ammonoosue River, gold has recently
been discovered in quartz rock, and a shaft sunk by a company of Boston
capitalists to the depth of seventy-five feet.
A correspondent o f the
American Exchange and Review, a monthly publication of Philadelphia,
describes the gold bearing quartz as traversing talcose slate, and containing
sulphurets of iron and copper and seams of magnetic iron. Some extra­
ordinary statements of recent assays from this locality have been published
— one by Dr. Hays, State Assayer o f Massachusetts, at $867 of gold per
ton, and another specimen of mixed quartz talcose slate, gossan, pyrites,
&e., at $312 42 per ton. In the adjacent township of Waterford, surface
quartz yielded $30 per ton ; quartz taken at nineteen feet below the sur­
face $45. Gulch mining has been successfully prosecuted in the vicinity.
If the New Hampshire discovery should warrant investments, there may
be a renewal of exploration and experiment in Vermont, where the Appa­
lachian mountain system is likewise largely developed.
During the year 1863 lodes of argentiferous galena were traced in the
vicinity of Marquette, on Lake Superior. This district is from ten to twenty
feet in breadth and about fifty miles in length, and is situated between the
schistose or iron range and Lake Superior. Assays reveal from ten to
thirty pounds of silver to the ton of metal. In the same vicinity east of
Marquette the Huron mountains were reported in 1864 to be gold-bearing;
but the rumors have led to no practical results.
A geological exploration of Arkansas undertaken a few years since in­
dicated the probability of profitable mining for silver, and perhaps gild ,
in the Ozark Mountain »> of that State.


i


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L L O C H .[ ^ H « ,

A district of Alabama, in the northeastern portion o f the State, is a
well defined extension o f the Appalachian gold field. Its production o f
gold deposited in the United States mint and branches has amounted
to $201,734 83, with an equal amount probably diverted to commercial
channels.
METALLURGICAL TREATMENT OF GOLD ORES.

A few general suggestions on the treatment of gold ores, and more par­
ticularly the auriferous sulphurets so prevalent in the formations east o f
the Eocky Mountains, are submitted.
The direct method of attacking these ores is by fire, as is always done
by the assayor in his laboratory, when he wishes to extract from a sam­
ple of ore all the metal which it contains. Undoubtedly, when the cost
of fuel, fluxes, and labor is reduced to something near the standard which
prevails in the seaboard States, the richer ores of Colorado, Montana,
etc., will be reduced by smelting. A t present, however, there is reason
to believe that the proper economic conditions for smelting do not exist,
except possibly in the case of argentiferous galena; although experiments
recently made at Swansea, England, upon large quantities o f pyritic ores
sent from Colorado have proved entirely successful. In conducting these
experiments, and estimating their cost, care was taken to make the condi­
tions as to fuel, fluxes, labor, etc., the same as those existing in Colorado.
It is stated that smelting works upon a large scale, upon the Swansea
plan, are to be started immediately in Colorado. If this should be done,
there will ensue a subdivision of labor in the business of mining gold and
silver, as is now the case in iron mining. The miner will limit his effoits
to the rising of ore from his mine, and the smelting furnace will afford a
market where the ore will command its price. This will be better for the
parties than the method hitherto pursued o f raising and reducing ores
under one administration.
But it will be a long time before the great mining regions of the Eocky
Mountains will have a sufficient number of smelting works to meet the
wants of our enterprising miners, who are constantly prospecting new
fields; and there will always be a class of ores too poor to bear the cost
of smelting.
The cheaper process of amalgamation, now universally employed in all
our mining districts (and, when no sulphurets are present, the very best
process), will continue to be very generally resorted to. This process con­
sists in reducing the ore to a fine powder by means of stamps, arastras,
Chilian mills, or other mechanical contrivances, and subjecting it to a con­
tinuous agitation with mercury, with water enough to give a party consis­
tency to the mass, the object being to expose as fully as possible the fine
particles of gold and silver to the attractive power of the mercury, with
which they form an amalgam, easily separable by subsidence in the lighter
pulp of earthy matter of which the ore consists. The amalgam thus ob­
tained, on being subjected to moderate heat in an iron retort, gives up its
mercury, which passes over in vapor, and is condensed again in another
vessel, the metal being left in the retort.
in the case of pyritic ores, however, it is found that the process of amal­
gamation is seriously retarded by the impurities with which the gold and




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silver are associated. Probably the ores of Colorado do not yield, by
simple amalgamation, an average of twenty per cent, o f their essay value.
A previous process of desulphurization is, therefore, indispensible; and
bow best to accomplish this is the problem which has occupied the atten­
tion of metallurgists for many years. Many methods have been advised,
the majority of which, being merely empirical, have had but an ephemeral
reputation.
As already intimated further details are reserved for a subsequent occa­
sion, when an effort will be made to describe the various processes now in
course of experiment.
The treatment of silver ores rests upon a far more satisfactory basis o f
chemical experience, and the different methods in successful use are clear­
ly and accurately compiled in the last edition of ITre’s Dictionary o f Arts,
Manufactures and Mines.
TREASURE PRODUCT OF THE WORLD.

When America was discovered the gold and silver supply of Europe did
not exceed §200,000,000, of which §60,000,000 was gold and $140,000,000
was silver. According to the estimates o f Humboldt sixty years elapsed
before this aggregate o f two hundred millions was doubled by the treasure
product of America.
M. Chevalier estimates that the total amount of gold and silver in 184$.^
the epoch of the California discovery, was $8,500,000,000, of which onethird was gold. It will require thirty-two years, or from 1848 to 1880,
to duplicate the supply, even if $250,000,000 is assumed to be the average
annual production of gold and silver during that period.
W e have the authority of Adam Smith that it was not until after 1570
that the increased supply from the American mines produced any appre­
ciable effect upon prices. In 1550, or twenty years previously, the treas­
ure stock of Europe had been doubled; and in 1570 it reached an aggre­
gate of $600,000,000. To this point the product of the American mines
was absorbed by the new demands of commerce. It was only until 1620,
or fifty years later, with a further addition o f $600,000,000 to the stock
of money in circulation, that silver fell to about one-third o f its former
value, with a corresponding appreciation of prices. In these statements
full allowance is made for the consumption of the precious metals by casu­
alties, abrasion, and the arts.
Whatever may be said of the great social and commercial activities of
the sixteenth century, the development of human industry and intelli­
gence in the nineteenth century will prove far more effective for the
absorption of the vast quantity of gold and silver now or hereafter pro­
duced.
The world in the sixteenth century received and assimilated three-fold
the treasure supply of 1492 without material change of prices, which was
postponed fifty years later, until a six fold supply, or an aggregate of
$1,200,000,000, had been applied to commercial uses. Then was observ­
ed a reduction to one third of the former value value o f silver. If we
compare the experience o f the world since 1848, the stock of specie in
that year of $8,500,000,000 will be doubled in 1880, without any other
effect than to vititiate commerce; and $100,000,000 per annum can still




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REPORT OF JAMES TV. TAYLOR TO SECRETARY Jd’ cCLLOOH.

[April,

be absorbed by the trade and intercourse of all the continents for twenty
years thereafter, or until A. D. 1900, before the monetary situation will
correspond with that of Europe in 1570, when the first effect upon the
exchangeable value of money is recorded.
W e are assisted, by the experience of the sixteenth century, to the con­
clusion that an aggregate of $25,000,000,000 in the year 1900 will hold
a similar relation to the trade and intercourse of mankind that the amount
of $8,500,000,000 sustained to the population and commerce o f the
world in 1848. If, as early in the next century as 1920, the stock on
hand should be increased six-fold, reaching a total of $50,000,000,000,
it might be attended, as in 1620, by a sensible reduction in the ex­
changeable value o f money; but this contingency is too remote and capa­
ble of satisfactory compensation to justify much solicitude in behalf o f
posterity.
There are indications that the large excess in the production of gold
over the silver, which, since 1848, has reversed the former relations of
these metals, may be less marked in future. The vast quantities of gold
produced since 1848 are mostly from placers— from the detritus o f aurif­
erous rocks. These surface mines are soon exhausted. In California, not­
withstanding the skillful application of hydraulic power, the production
of gold by gulch or placer mining has diminished from $60,000,000 in
1853 to $20,000,000 in 1866. Except for new discoveries, and some suc­
cessful enterprises of quartz mining, the Australian supply of gold would
have likewise diminished. Very few diggings hold a mining population
longer than a single season. The “ dust o f g o ld ” is soon gathered. It
may be admitted that Australia, Siberia, perhaps the sources of the Zam­
besi and the Nile in Africa, and northwest British America will, when fur­
ther explored, reveal a great many districts where the surface deposits are
rich and accessible; but each will be in turn a scene of great excitement
and of rapid exhaustion, and, perhaps, before the close of the present cen­
tury alluvial gold mining will be almost a tradition. This tendency is so
apparent in everj' gold-producing community that public attention turns
constantly, and with solicitude, to the separation of gold from its native
matrix of rock as the only permanent means o f production. But at that
stage silver mining comes into successful competition w hat 11 existing
methods for the reduction of auriferous rock. It has always been more
profitable to work mines o f silver than o f gold, of which Mexico, during
two centuries of experience, and the Pacific coast, during two decades, are
illustrations.
There was very little mention o f silver while the discovery and con­
quest of America were in progress. Among the vast mineral treasures o f
Montezuma, the quantity of silver was small compared with gold. It was
“ El Dorado” which was eagerly sought for by European explorers. Each
country was ransacked, with the forced labor of Indian slaves, for gold.
This was the era of placer-mining in the American dominions of Spain.
In consequence of the importation o f gold, Isabella of Castile was obliged,
as early as 1497, to modify greatly the relations of gold and silver at the
mints. The Spanish sovereigns acknowledged the grant by the pontiff,
Alexander VI., of their discoveries “ in India” by a donation of gold from
Hayti. At length, however, after the discovery of the silver mines in
Peru and Mexico, and when the experience of miners had elaborated a




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systematic industry, gold ceased to be o f much practical importance, and
silver became the leading metallic product of Spanish America. Of the
coinage of Mexico from 1535 to 1845, $2,465,275,954 was of silver, and
$126,981,021 of gold. Except for Brazil, the proportion in South America
would be fully equal to that recorded in Mexico.
In the case of California, after many unsuccessful experiments, the re­
duction of auriferous lodes has been established. The veinstones, when
pulverized, readily release the gold ; there is a remarkable absence of re­
fractory alloys; all the conditions, especially in Grass Valley, are favor­
able. Yet the yi»ld of gold does not exceed $9,000,000 per annum, while
on the eastern slope of the Sierra Nevada the annual production of silver,
chiefly from the Comstock lode, amounts to $16,000,000 per annum.
As the mining territories are explored, the discoveries of argentiferous
veins are reported in all directions. The interior of the vast mountain
mass developes in Sonora, Chihuahua, Arizona, Nevada, Utah, New
Mexico, Colorado, Idaho and Montana, the identical formations and condi­
tions which, in a lower latitude, characterize Durango, Zacatecas, Guana­
juato and the other well-known silver districts of Mexico. With the ex­
haustion of the placers (perhaps a remote contingency) it is quite possible
that the production o f silver, as compared to gold, will be restored to the
old ratio of three of silver to one of gold.
But at present, as well as for the last 18 years, the ra’io of production
is reversed— three o f gold to one o f silver. The following statement is
submitted as an approximation, carefully avoiding exaggeration, of the
quantities of the precious metals produced in 1866 :
United States................................
Mexico and South America.........
Australia........................................
British America............................
Siberia............................................
Elsew here......................................

Gold.
$60,000,000

Silver.
f2n,o0U,000

Total.
$80,000,000

5,000,000

35,000,000

40,000,000

60,000,000

1,000,000

61,000,000

5,000,000
15,000,000
5,000,000

600,000
1,500,000
2,000,000

6,500,000
16,500,000
7,000,000

$150,000,000

$60,000,000

$210,000,000

The annual production of silver since 1853 has not exceeded $50,000,000, or £10,000.000. Yet, within the period of 14 years— from 1853 to
1866— the sum of £11,250,000 has been annually transported from
European ports (including shipments from Egypt) to Asia. The aggre­
gates of bullion exports were as follows :
G old..................................................................................................................
Silver ..............................................................................................................

£24,773,647
167,424,757

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

£182,198,404

France alone, although the richest country of the world in the precious
metals, has, since 1848, parted with $165,947,253 o f silver, and taken
gold in exchange. This has resulted from a fall in the value of gold, as
compared with silver, of 2£ per cent., which, by comparison of the course
of exchanges between England, using a gold standard, and Hamburg and
Amsterdam, using a silver standard, is the only monetary result of the
excess of gold supply since 1848. Europe and America will substitute




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[April,

gold for silver as money, while Asia will probably continue to absorb sil­
ver for many years to come, before the ratio of currency to population now
existing in Europe shall extend over the eastern world
A brief statement will illustrate the extent o f the oriental demand for
the precious metals, which, now mostly confined to silver, will hereafter,
or as soon as the world shall desire it, extend to gold. India, in 1857, had
a circulating medium o f 1400,000,000 for the use of a population of
180.000. 000, or $2 22 per capita. France has a population of 38,000,000,
with a money supply of $910,000,000, or $24 per capita. Suppose China,
Japan, and the other industrious populations of Asia to be in the situation
of India, and that the current of bullion since 1853 has supplied the
Asiatics with $3 per capita, there yet remains a difference of $21 per capita
before the monetary level of France is attained, demanding a further sup­
ply of $21 per capita over a population of 600,000,000, or not less than
$12,600,000,000.
The railway system will soon connect Europe and Asia, and constitutes
a most important agency for the transfer of capital and distribution o f
money among the populations o f the Eastern Continent. Since the sup­
pression of the Indian mutiny, an English writer estimates that more than
one hundred millions sterling have been added to the currency and repro­
ductive capacity of India, mostly from England, in the construction o f
railroads and canals. There were 3,186 miles of railway in operation in
1865, having cost $86,000 per mile, and having been constructed with the
aid of a guaranty of 5 per cent, to stockholders by the province of India.
The system, for which the government indorsement is already given, will
be 4,917 miles o f railway, at an estimated cost of £77,500,000. These
roads will relieve the Government of liability when their earnings reach
£25 per mile per week, a point which the leading lines have nearly
reached, and which all are destined to attain. Such is the success of the
Indian railways that their connection with Europe by tl e valley of the
Euphrates, and their extension into China will probably be accomplished
within the next ten years. By that time Russia will have undertaken a
railway’ from Moscow to Pekin, through southern Siberia— a great trunk
line that would soon justify a series of southern lines, penetrating central
Asia over those leading caravan routes which have been the avenues of
Asiatic commerce for centuries.
If an investment of $430,000,000 in 5,000 miles of railway is financially
successful in Hindostan at this time, it may be anticipated that a popula­
tion of 180,000,01)0 will warrantthe enlargement of the system within the
present century fully four-fold, which would be only a fifth of similar com­
munications required and supported by a European or American com­
munity. Seppose such a ratio of railway construction extended over China,
central and western Asia and Siberia, it would be only one mile for every
9,000 people; while in the United States there are 36,000 miles for
36.000. 000 people, or a mile to every thousand ; and yet the Asiatic
ratio, moderate as it is, presents the startling result of 66,000 miles of
railroad constructed by the expenditure ot $5,676,000,000. Such a dis­
bursement of European accumulations in Asia would go far to diffuse not
only the blessings o f civilization, but any excess of production from the
gold and silver mines of the world.
In Australia a railway has been constructed from Melbourne to the




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Ballarat gold fields, 380 miles, at a cost o f $175,000 per mile, which pays
a net profit nearly equal to the interest on the immense investment. It is
difficult to estimate the amounts destined to be absorbed for railways in
all the continents, under the direction of the great powers of the world—
projected, constructed, and administered by the wealth and intelligence of
America, Russia, England, Germany and France. But the railway system
is but an instance, among many other causes, conducing, in the language
of an eminent English writer,* “ to augment the real wealth and resources
of the world ; to stimulate and foster trade, enterprise and production,
and, therefore, conducing, with greater and greater force, to neutralize by
extension of the surface to be covered, and by multiplying indefinitely the
number and magnitude o f the dealings to be carried on, the a priori ten­
dency o f an increase of metallic money to raise prices by mere force o f
enlarged volume. Already the boundaries within which capital and en­
terprise can be applied, with the assurance and knowledge alone compati­
ble with durable success, have been extended over limits which ten or even
five years ago would have been regarded as unattainable. There have
come into play influences by which it seems to be the special purpose to
contribute by the aid of the concurrent advance in knowledge, to the re­
moval or mitigation of many chronic evils against which past generations
have striven almost in vain.”
TRANSPORTATION

FROM

THE MISSOURI RIVER TO TH E ROCKY MOUNTAINS.

W hile postponing a detailed consideration o f the character and extent
o f trade and transportation from the Missouri River to the mining terri­
tories of the interior since 1848, some idea of the westward movement of
merchandise and the cost of its transportation, may be obtained from the
Quartermaster General’s report to the Secretary o f War for the year end­
ing June 30, 1866, which exhibits the transportation on account of gov­
ernment, and the rates paid per hundred pounds per hundred miles. The
rates from the Missouri river to northern Colorado, Nebraska, Dakota,
Idaho, and Utah were $1 4 5 ; to southern Colorado, Kansas, and New
Mexico, $1 38, with an addition from Fort Union in New Mexico to posts
in that territory, in Arizona and western Texas of $1 79 per hundred pounds
per hundred miles. The total number of pounds transported was 81,489,321 or 40,774 6-10 tons, at a cost of $3,314,495. Parties familiar with
the course of this inland trade, estimate that the transportation on account
of government is one-ninth the total amount of transportation. A t this
rate the whole amount paid in 1866 for freights from the Missouri River
westward was $30,830,055. According to a statement recently made by
the officers of the California division o f the Union Pacific railroad $13,000,000 in gold was paid in 1863 for transportation eastward from San
Francisco to the State of Nevada and Territories east o f the Sierra Nevada.
The details of return freights and the amount paid for the movement of
passengers are, as yet, too incomplete for publication. Not less than
$50,000,000 per annum is expended on or near the line o f the Union
Pacific railroad for the transportation of travellers and merchandise.

* Tooke’s History of Prices, vol. vi, p. 235, published iu 1857.




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[April,

GENERAL OBSERVATIONS.

I beg leave to close this communication with a few observations of a
general nature :
1. There are two indispensable requisites to the development of the
western mines— security from Indian hostilities, and the establishment of
railway communication to the Pacific coast on the parallels of 35°, 40°
and 45°. O f these, the completion o f the “ Union Central” on the aver­
age latitude of the fortieth parallel may be anticipated in 1870, and will
unquestionably give a great impulse to the communities which it will
traverse, probably to such a degree as to warrant the immediate con­
struction of a northern line central to Minnesota, Dakota, Montana,
Idaho, Washington and Oregon, and a southern line equally indispensable
to the Indian Territory, Texas, New Mexico, Arizona, and southern Cali­
fornia.
2. Great results o f a social, no less than a material character, may be
anticipated from the act o f July 26, 1866, extending facilities for acquir­
ing title to mineral lands. By that act, freedom of explanation, free occu­
pation of Government lands for placer mining, a right to pre-empt quartz
lodes greviously held and improved according to local customs or codes of
mining, the right o f way for aqueducts or canals, not less essential to ag­
riculture than to mining, and the extension o f the homestead and other
beneficient provisions of the public land system in favor of settlers upon
agricultural lands in mineral districts, have been established as most im­
portant elements for the attraction of population, and the encouragement
of mining enterprises. The Commissioner of the Land Office has carefully
analyzed this enactment, and greatly facilitated its execution by a circular
recently issued. The spirit of the legislation under consideration is in
the interest of actual settlement and occupation, and adverse to absentee
ownership for merely speculative purposes, o f mining properties. It will
probably be necessary to supplement that act in question by some gen­
eral revision o f the local mining customs, which, although generally found­
ed on the Spanish code so long in use in Mexico, are often incongruous
and obscure.
3. Great loss and disappointment have resulted from the unique geolog­
ical and mineralogical development o f auriferous and argentiferous lodes
of the Rocky Mountains and the Alleghanies. Metallurgical machinery
and methods which had been successful in Europe, and even in California,
have proved inapplicable or met with unexpected obstacles in the reduc­
tion of ores. There is no subject of greater importance than a scientific
analysis of the situation and combinations of the precious metals and the
best methods for their treatment. How far Congress or any Executive
department can judiciously co-operate in the solution of the mechanical
and chemical problem which now confronts the skill and experience of all
interested in the economical reduction of the ores of gold and silver, it is
not within the province of this report to determine; but the great utility
of the geological survey o’f Lake Superior and the Upper Mississippi, in
1847, under the direction of Professor D. D . Owen, may properly be re­
ferred to as suggesting the expediency o f a similar exploration under Na­
tional auspices of the mineral districts of the Western States and Territo­
ries, and which might be appropriately extended to include the metallif­
erous localities of the Alleghanies.
J am es W . T a y lo r .
Hon. Hugh McCulloch, Secretary o f the Treasury.




1867]

BALTIMORE— ITS MANUFACTURES, COMMERCE, ETC.

293

BALTIM ORE— ITS MANUFACTURES, COMMERCE, ETC.
Baltimore, the most southern o f the four great commercial cities o f the
Atlantic seaboard, is located upon an estuary or small bay, which makes
up for about two and a half miles on the north side of the Patapsco River,
ten miles from the entrance o f this river into the Chesapeake Bay, o f which
it is for this distance an arm. The city, by ship-channel, is about 200 miles
from the ocean, and by railroad, 38 miles north-east from Washington,
and 98 mile south-east from Philadelphia, lat. 39° 17' north, and long.
76° 37' west.
The situation of Baltimore, whether for foreign or internal trade, is ad­
mirable. It has a spacious and secure harbor, far inland, and is approach­
ed through a narrow and easily defended arm of the sea. Its connections
with the interior are ample, railroads diverging from the city in every
direction. The Baltimore and Ohio Railroad extends west to Wheeling
and Parkersburg on the Ohio River, forming connections at these points
with the great lines of the north middle section of the Union, and through
these with the railroads now being constructed to the Pacific Ocean.
Pittsburgh will also be reached by this road, the branch from Cumberland
being now in course of construction. The Northern Central Railroad and
its connections give access to the coal fields of Pennsylvania and to the
ports of Lakes Ontario and Erie. The great shore line o f railroads con­
nects the city on the one hand with Philadelphia, New York and the
Eastern cities, and on the other with Washington, Alexandria, and the
whole south and south-west. The Western Maryland Railroad, as its title
implies, is intended to develope that portion of the State. On these great
avenues of interior travel and transportation the commerce o f Baltimore is
entirely dependent, since by nature the site occupied by the city is hemmed
around by physical difficulties which would otherwise be fatal to commer­
cial prosperity.
Baltimore has no long record. Its admirable location was for a long
period unappreciated, nor was it before 1729 that the town was laid out.
The part then first laid off (60 acres in extent) was the central southern por­
tion, about the head of what is now familiarly called “ the basin.” Thiee
years subsequently, in 1732, ten acres east o f Jones’ Falls, a part of thepresent, “ old town,” were laid out under the name of Jonestown, and in 1735 the
two became united as the town o f Baltimore. Up to 1752 it contained only
twenty-five houses. Sixteen years later it became the County Seat, and
so late as 1780 it was made a port of entry. Until that time all vessels
trading to and from the port entered, cleared and obtained registers at
Annapolis. None o f the streets were paved before 1782, when a com­
mencement was made on Baltimore street, from that day to this, the main
street of the city. In the same year the first regular communication with
Philadelphia— a line o f stage coaches— was opened ; and not to enlarge
by tedious details, it began to assume a metropolitan appearance, and o b ­
tained an A ct of Incorporation on the 31st day o f December, 1796. The
City Government was organized in the following year, and from the be­
ginning of 1798 Baltimore was classed among American cities.
In 1775 a census was taken at the expense of a few private individuals,
and the town found to contain 564 houses and 5,934 inhabitants. Some




29 f

BALTIMORE---- ITS MANUFACTURES, COMMERCE, ETC.

[April,

idea of its steady rapid growth since this date may be obtained from the
following returns of the federal census since taken :
Census.
1790...................
1800...................
1810...................
1820...................
1830...................
1840...................
1850...................
1860...................

White.
Persons.

,-------- Colored Persons---------,
Free.
Slave.
Total.
323
1,255
1,578
2,843
5,614
2,771
5,671
4,672
10,343
10,326
4,357
14,683
14,790
4,120
18,910
17,980
3,212
21,192
2,946
24,625
27,571
25,680
2,218
27,898

White &
Colored.
13,503
26,514
46,555
26,738
70,620
102,513
169,012
212,418

It is thus seen that Baltimore in the last twenty years has gained in
population more than it did in the first hundred years of its existence. In
1840 it contained 102,513, and in I860, 212,418 inhabitants.
Baltimore is highly favored as a manufacturing locality. Jones’ Falls
and the Patapsco River afford immense water power, which is extensively
employed for flouring mills, <fcc. Numerous cotton mills are also in
operation, and in Canton and other neighborhoods iron, and other manu­
factures are largely engaged in. It may be well, however, to state that
some of the largest of the manufactories are located beyond the city
limits, but in the County of Baltimore; and hence to understand properly
the true manufacturing volume belonging to the city, those of the county
must be added, as in the following returns for 1860 :
Number of
Capital
Establi-hm’ ts. invested.

Cost o f raw
material.

^ H ’ds ('Tripl'd-. Cost of
males females, labor.

Value of
Product.

City............. 1,100 $9,009,107 $12,624,737
County........
210 4,780,650
6,443,946

12,388
3,547

4,666 $3,974,278 $21,083,617
1,241 1,376,966
8,508,241

City&County 1,310 $13,789,757 $18,06S,6S3

15,935

6,907 $5,361,244 $29,591,758

As compared with Philadelphia, New York and Boston give the fol­
lowing returns :
Philadelphia..
6.29S $73,318,885
N e w Y o rk ....
4,375 61,212,757
Boston........... 1,050
14,527,810

$69,562,206
90,177,038
20,254,277

60,3*0
65,483
14,094

30,623
24,721
4,(99

$27,369,254 $135,979,777
28,481,915 159,407,369
6,948,229
37,681,808

The above table shows that Baltimore (city and county) produces $111
to each inhabitant, Philadelphia $240, New York $197 and Boston $212.
The annual value of the products of most important manufactures o f
Baltimore are given in the following table for 1860:
City.

Agricultural implements...........................
Boots and Shoes............................................
Brass Foundry.............................................
Bread.............................................................
B rick.............................................................
Carriages........................................................
Chemicals (Bi-Chromate of Potash)........ ........
C igars.............................................. ..............
Clothing— men’s ............................................
Cooperage......................................................
Cooper Smelting...........................................




County.

$14, you
40,770
19,255
60,700
2,700
185,000

Total.
$248,400
912,337
154,000
488,837
339,300
220,625
135,000
672,649
3,124,081
319,095
1,300,000

1867]

BALTIMORE---- ITS MANUFACTURES, COMMERCE, ETC.

City.

Cotton Gocda...............................
Flour and M eal...........................
Furniture......................................
Gas................................................
Hats and Caps.............................
Hides and Tallow.......................
Iron Castings (including stoves),
“ Bars, sheet, <&c.................
“ Peg.......................................
Leather.........................................
L im e ............................................
Liquors— distilled.....................
“
— m a lt...........................
“
— rectified.......................
Lumber, sawed and plained.. . .
Machinery, steam engines, 4 c . .
Marble and stone-work..............
Nails............................................. .
Oil, Linseed..................................
Paper............................................
Pianos ..........................................
Printing.........................................
Provisions—oysters packed. . . .
“
— Pork and B eef.. . .
“
— Preserved fruits.. .
Saddlery and Harness...............
Sails..............................................
Ships and boat buildin g...........
Soap and Candles.......................
Sugar, refined.............................
Tin, copper and sheet iron ware
Woolen Goods..............................

60.000
620,692
634,910
375.000
145,047
...........
689.000
641,126
130.000
471,010
...........
142.000
211,161
124,867
401.029
392,500
229,760
...........
233.000
30.000
265.000
324,954
1,025,920
928,235
63,700
210,491
125,400
606,822
433,345
2,300,000
282.030
...........

County

2,080,814
2,426,887

294,981
117,959
378,000
88,650
134,700
157,377
6,000
24,676
1,100,000
330,000
160,000
297,400

2,275
.........
... .
435,250

295
Total.

2,180,814
3,046,589
634,910
375,000
146,047
294,981
706,959
641,125
508,000
559,660
134,700
299,377
216,161
124,367
425,704
1,492,600
559,760
150,000
233,000
321,400
265,000
324,954
1,025,920
928,235
63,700
212,766
125,400
606,822
433,346
2,300,000
282,030
436,250

From this exhibit it will be seen that the most extensive cotton and
woolen factories are beyond the city limits. The same may be said of
its machine shops, furnaces, naileries, paper mills &c., and of full one half
of its marble works, distilleries, &e. Several o f these are largely carried
on at Canton, a flourishing suburb adjacent to the city, to which the
Northern Central Railroad has lately been extended.
The shipping registered and enrolled, and the shipping built at the port
of Baltimore in 1850, and quinquennially thereafter, are shown in the
following statement:

I860...............
1855 ............
I860 ...........
1865 ........... .

Total
Registered
Enrolled Licensed
shipping. and licensed, under 20 tns. tons.
67,612
737
149,019
981
71,656
1S3.109
84,301
1,622
200,108
2,286
196,958
129,785

Of which Shipping
steam. built (tns)
13,116
11,683
16,340
18,817
21,953
6,889
20,615
7,983

The number, nationality and tonnage of shipping entered and cleared
in the foreign trade of Baltimore for the same years, is returned thus:
,---------------------- Clearauces. ------------------------,
Year endi’g A m e r ic a n —x^-Foreign—, Total,
June 30, Vessels. Tons. Vess. Tons. tons.
1850 ......... 359
89,296 162 37,523 126,819
1855 .......... 364 111,696 123 47,494 158,590
1860 .......... 33S 115,733 208 58,267 174,000
1865 .......... 129
37,906 212 71,821 109,727




/------------------------ Entrances.----------------------- ^
Year endi’g American—* Foreign—, Total,
June 30, Vessels. Tons. Vess. Tons, ton s’
1850 ............ 295 70,427 143 29,161 99.588
1855 ............ 360 121,337 189 43,790 165,127
1860 ............ 433 139,514 184 46,963 1S6,417
1865 ............ 123 35,006 182 53,460 88,466

296

BALTIMORE---- ITS MANUFACTURES, COMMERCE, ETC.

[April,

The aggregate values of the exports and imports in the same years are
shown in the following table:
.-----------------Exports.-----------------.
Domestic. Foreign.
Total.

1850
1855
1860
1865

Total
imports.

Of which in Am. veis—,
Exports.
Imports.

................... $6,589,481 $377,872 $6,967,353 $6,124,201 $4,908,046 $5,529,682
................... 9,882,918 513,766 10,895,984 7,788,949 7,836,643 6,726,518
................... 8,804,606 196,394 9,001,600 9,784,773 5,907,939 8,073,328
................... 11,794,546
346,491 12,141,037 4,816,454 3,303,820 2,400,939

The exports of domestic produce to foreign countries and other agricul­
tural States, consist in the main of flour, grain and provisions, and of late
years petroleum has been sent away in considerable quantities, and also
some copper, o f which last large quantities are smelted in the city. But
the principal stable of export is tobacco, in the leaf and manufactured,
which together usually make up one-half of the total value. The following
table gives full details of the leaf tobacco trade for the ten years 1857-66 :
SHIPMENTS OF MARYLAND AND OHIO TOBACCO.

1857.
Bremen...................17,427
Rotterdam............ 11,715
Amsterdam.......... 4,066
England.................. 2,148
F rai.ce.................. 7,438
S p ain ...............................
Trieste.................. 1,213
Antwerp, & c .........
252

1858. 1859. 1860. 1861. 1862.
1863. 1864. 1865.
1846
15,660 18,593 24,767 31,911 12,280 10,288 15,469 13,738 15,006
17,985 20,715 22,949 22,708 11,542 7,993 11,565 7,910 15,198
3,759 1,298 5,221 8,183 8,024 3,370 4,837 4,753 4,192
4,288 1,950 3,010 6,440 3,827 3,109 2,467 1,084
682
16,935 8,401 6,825 6,215 4,470 6,383 7,457 5,S63 6,320
2,601
....
1,169
....
6,296 5,050 2,280 5,202
818
1,140
....
900
......................................................................
...............................
1,133
.........................................................

Total, hhds........ 44,259 62,368 50,957 64,641 75,590 48,439 36,193 44,378 38,560 42,215

The total inspections and exports (including Kentucky and other to­
baccos,) in tbe same years, were as follows:
Years.

Maryland.

1866...............
1865...............
1864...............
1863...............
1862...............
1861_________
1860...............
1859...............
1858...............
1857...............
1856...............
1865...............

Inspections.Other.
Ohio.

Total.

Total
exports.

Stocks at
end of y’r

566
3,077
2,140
2,267
3,646
3,012
2,700
3,022
3,169
1,608
1,563
991

47.660
43,952
52,619
65,975
58,699
67,571
92,838
62,801
70,609
47,305
52,852
39,658

52,663
42,605
45,052
44,137
13,447
85,237
68,338
55,974
66,534
47,162
55,798
36,392

17,645
22,297
20,938
21,560
6,450
24,500
15,181
8,359
4,219
4,684
7,439
3,733

15,679
15,396
21,961
17,032
13,560
14,152
23,000
15,331
22,300
7,640
12,959
10,097

The inspections o f flour in Baltimore for the last five years was as follo w s :
Howard street............. . .
City Mills.....................
O h io .............................. . .
F am ily.........................
Total, barrels.. . .
R y e ...............................
Com Meal. ...................




1866.
189,871
328,788

1865.
244,246
398,819
262,080
78,846

1864.
316,429
410,219
240,383
66,402

1863.
317,229
437,638
278,153
69,838

1862.
316,396
394,140
212,989
64,100

984,021
12,255
32,892

1,033,433
7,140
30,977

1,102,852
7,400
40,025

967,632
10,531
29,570

1867]

297

BALTIMORE— ITS MANUFACTURES, COMMERCE, ETC.

The exports of flour from Baltimore to foreign countries chiefly to Bra­
zil, the West Indies and the British North American Colonies for the same
years were as shown in the following statement :
1S66.

1865.

1864.

1863.

Brazil................ .......................
West Indies...............................
British NorthAmer. Colonies.
Other countries........................

92.541
70,070
16,507
1,180

120,951
74,407
17,249
1,873

170,694
98,969
14,430
49,049

157,286
83,473
33,412
52,279

Total, b a r r e l ...................

179,298

215,474

333,042

826,450

The following table shows the receipts o f wheat and other grain from
all sources:
1866.

W heat.........................
C o r n ................................
Oats.................................
R y e .................................

1,359,604
4,479,033
1,333,510
78,494

Total, bushels........

6,245,641

1865.

1864.

1,887,570
2,936,246
1,250,604
75,240
6,149,660

1,960,092
2,286,003
946,710
55,518
5,248,323

1863.

2,329,058
2,201,933
1,603,212
45,361
6,179,614

The great bulk of the wheat here represented is manufactured in the
city, and furnishes a flour which has a high standing in all markets.
The chief returns from foreign countries are coffee from Brazil, sugar
from the West Indies, and fish from B/itish America. The imports of
coffee for the last four years are represented thus:
Orign.

B ra zil................. ...............................

1806.
160,437
2,761
1,477

1865.
86,725

Coastwise..........................................

164,725
16,145

1,640
------ 88,265
12,219

Total (b a g s)..............................

180,870

100,484

Other countries.................................

—

1861.
91,184
4,504
1,232
------ —
96,920
700
97,620

1863.
7 3 ,9 5 7

1,642
-----76,599
202
—

76,801

The quantity o f sugar and molasses im iported in the same years was as
follows:
— West Indies, hhds .........
bbls <fc bxs. ..
M o l a s s e s — hhds.............................
t c s ....................................
b b ls ............................. ....
S

ugar

1866.
49,922
48,319
9,337
2,430
1,353

1865.
40,730
36,500
6,146
1,160
406

1864.
19,611
6,146
6,635
1,812
2,471

1863.
28,095
6,646
5,3801,466
60S

The great bulk of these imports is sent W est by the Baltimore and
Ohio Railroad for the markets o f the interior, Cincinnati, Louisville, and
St. Louis.
Baltimore has been long noted for its copper smelting works, and of
late years also for its iron founding. The Baltimore and Cuba Mining
and Smelting Company has a capital o f $1,000,000, and carries on its
operations at two establishments— one at Canton on the east, and the other
at Locust Point on the south side of the harbor, and these jointly work
thirty-four reverberatory (including four refining) furnaces. The number
of hands employed as refiners, smelters and laborers is about 300, at wages
V O L . IiV I— n o . iv.
19




298

BALTIMORE---- ITS MANUFACTURES, COMMERCE, ETC.

[April,

ranging from $1 50 to $4 per day. These two establishments consume
front 30,000 to 36,000 tons of Cumberland coal annually. The ores are
chiefly brought from Cuba, but also largely from the Lake Superior and
other domestic mines. The copper finds its chief market in New Y*rk.
In the iron interest there are nine blast furnaces which in 1866 produced
about 30,000 tons of 2,240 lbs., and about equally divided between the
charcoal and anthracite varieties. The rolling mills have been in fair
activity during the year, but less so than when there was a war-demand
for the celebrated boiler iron made here.
No other market is so largely engaged in the guano trade as Baltimore.
The trade, however, lost its usual proportions during the war. The arrivals
in 1866 were eleven vessels from the Chincha Islands, bringing 13,000
tons, and twenty other cargoes principally o f Navassa, amounting to 7,000
tons— making an aggregate o f 20,000. Most o f the Chincha was taken
by the South, the cargo price having been $60 (gold) per ton. The Na­
vassa imports also found ready sale, being chiefly used in the manufacture
of other fertilizers. Baltimore continues to be one of the great centres
of the oyster and canned fruit business. The houses prosecuting the
trade now number upwards of forty and employ more than 4,000 per­
sons of both sexes in the various departments of shucking, packing, peel­
ing, preserving, Ac.
The oyster packing commences in September and continues to the mid­
dle of June. The quantity of oysters brought to this market annually is
variously estimated at five to seven million bushels, some 2,000,000
bushels are packed raw in cans (iced) of 2 to 5 quarts in size requiring
about 4,250,000 cans and 200,000 cases; and about 3,000,000 bushels
are done up in hermetically sealed cans. The raw or fresh oyster branch
gives employment to about 1,500 persons, shucking, packing, Ac. The
shuckers are principally negroes. The hermetically sealed branch requires
about 2,500, chiefly white families. The new process o f steaming renders
the opening o f oysters so simple that children may do it. The num­
ber of cans of one, two and three pounds each, hermetically sealed daily
during the active season is quite 75,000 ; and in this branch about 8,000,000 cans are used annually. About the same number o f cans is used in
the sealing of fruits and vegetables in the summer season. Thus some
fifteen or sixteen millions cans of oysters, fruits and vegetables are the
products of this industrial pursuit and these again require about 600,000
cases in which they are packed. The manufacture of cans gives employ­
ment to upwards of 400 persons, and the value of tin, solder, Ac., used in the
manufacture is near a million dollars. The case making employs from 240 to
250 carpenters. The total value of this business is between $5,000,000
and $6,000,000 a year. The vessels employed in taking oysters for this mar­
ket aggregate about 50 tons to each vessel; and sjme 500 or 600 vessels
o f a larger class are engaged in running them to market. The crews of
these vessels number about 6,000 persons. In the summer and autumn
or the fruit and vegetable season as many more are engaged packing,
boxing and shipping these products to Baltimore by steamers and bay craft;
and when all these oysters and fruits and vegetables reach the wharves
there is a teeming hive o f carters, carmen, and draymen who derive a
living from the delivery of the same.
This trade has so rapidly grown to prodigious proportions within a few




1867]

299

RAILROAD EARNINGS FOR FEBRUARY,

years, as to excite astonishment with those even who have had most ex­
perience in it. The chief points of shipment for these goods ; re to the
West, far West, and the North and Southwest. The trade to California,
once so large, has now become insignifieent.

RAILROAD EARNINGS FOR FEBRUARY.
The gross earnings o f the under-specified railroads for the month of
February, in 1866 and 1867, comparatively, and the differences (increase
or decrease) between the two periods, are exhibited in the subjoined state­
ment :
Railroads.
Atlantic and Great Western..........................
Chicago and Alton ........................................
Chicago and Great Eastern............................ .............
Chicago and Northwestern ........................... .............
Chicago, Rock Island and P acific................ .............
Cleveland and Pittsburg................................. .............
E r ie ................................................................. .............
Illinois Central............................................... .............
McGregor Western ...................................... .............
Marietta and Cincinnati................................. .............
Michigan Central...........................................
Michigan Southern........................................ .............
Milwaukee and Prarie du Chien.................... .............
Milwaukee and St. Paul................................. .............
Ohio and Mississippi . ................................. .............
Pittsburg, Fort Wavne and Chicago............. .............
St. L'tuis, Alton and Terre Haute................. ..............
Toledo, Wabash and Western....................... .............
Western U n ion ............................................... .............

1866.
79,430
453,695
2 9,069
151,930
987,935
505,266
16,500
84,264
283,179
84,S97
122,621
246,109
480,9S6
155,893
194,167
36,006

Increase. Decr’ se.
1867.
$377,852
$31,012
$ ........
27 759
*250,000
1,804
77,626
586,743
133,048
21,572
184,497
*135,000
16,930
917,639
70,296
554,201
48,935
1,5' 0
15,000
78,976
5,2S8
283,661
17,865
19,258
302,437
85,000
103
7,379
130,000
27,044
219,065
41,835
522,821
6,551
149,342
6,626
200,793
8,339
27,667

Total (19 roads)........................................ ............. $4,OSS,848 $5,098,320

$109,472

$ .......

The statement which follows shows the miles of road operated, and
the gross earnings per mile o f the same roads for the same months:
Railroads.
Atlantic & Great Western.............
Chicago and Alton.........................
Chicago and Great Eastern............
Chicago and Northwestern............
Chicago, Rock Island & P acific...
Cleveland and Pittsourg.................
Erie................................................. .
Illinois Central..............................
McGregor Western....................... .
Marietta and Cincinnati.................
Michigan Central....................
Michigan Southern....................... .
Milwaukee & Prairie du Chien___
Milwaukee and St. Paul.................
Ohio and M ississippi....................
Pittsburg, Ft. Wayne and Chicago.
St. Louis, Alton and Terre Haute.
Toledo, Wabash and Western___
Western Union..............................
Total (19 roads)........................

Miles Road—, r-Earnings.—^
1866. 1867. 3866. 1867. Incr. Dec .
$ 50
507
507 $806 $756 $ . . .
280
794
280
S93
99
224
224
354
”8
346
1,032 1,032
439
568
129
423
68
423
494
436
,.
204
204
84
745
661
798
732 1,2:38 1,253
15
708
703
713
782
69
50
103
66
330
227
251
*22
251
336
314
285
2S5
933
995
*62
524
524
540
577
37
234
234
364
1
363
275
275
446
473
27
340
644
340
724
.‘ so
468
468 1,028 1,117
89
742
713
210
210
*29
484
484
401
415
*i4
203
177
177
160
*43
7,474 7,424

$667

$687

$20

$ ...

On a less mileage by 50 miles than in 1866 the aggregate gross earn-*
* The earnings o f the Chicago and Alton and Pittsburg and Cleveland railroads for 1867, are
estimated.




300

PUBLIC DEBT OF THE UNITED STATES.

[April,

ings of the above nineteen roads have exceeded those of that year by
£109,472, or $20 per mile of road operated. Ten of the nineteen roads
represented in the table, measuring 5,022 miles, have increased their earn­
ings by $302,608 or $60 24 per m ile; and nine roads, measuring 2,402
miles, show a decrease o f $193,472, or $80 50 per mile. The Chicago and
North Western appears to have increased its earnings more largely than
any others of the series— the Cleveland and Pittsburg, the Ohio and Mis­
sissippi, and the Rock Island are those exhibiting the largest decrease.
The Erie, though showing a decrease in absolute amount, has actually in­
creased its earnings to the extent o f $15 per mile of road operated. The
statement on the whole will no doubt be considered favorable; and,
indeed, it shows better general results than have been witnessed for a long
time past.

PUBLIC DEBT OF THE UNITED STATUS.
Abstract statement, as appears from the books and Treasurer’s returns
in the Treasury Department, on the 1st of February, the 1st of March and
the 1st of April, 1867, comparatively :
DEBT BEARING COIN INTEEEST.

5 per cent, bonds..........................................................
“
“ o f 1867 and 1868.................................
«
“ o f 1881................................................
“
“ 5.20’ s .................................................
Navy Pension Fund.....................................................

Feb. 1.
$198,091,350
15,779,442
283,745,250
910,029.500
12,500,060

Mar. 1.
April 3.
$198,091,350 $198,091,350
15,679,44*
15,482,642
283,745,400 283,745,600
954,839,000 989,562,000
12,500,000
12,500,000

$1,420,145,542 $1,464,S55,192$1,499,381,592
DEBT BEARING CURRENCY INTEREST.

6 percent, bonds.........................
3-year Compound Interest Notes
3-year 7.30 n o t e s . ...............—

$12,922,000
143,064,640
663,686,100

$12,922,000
141,308,830
632,798,050

$12,922,000
139,028,630
582,330,150

$S19,672,740 $787,028,880 $734,280,780
DEBT ON WHICH INTEREST HAS CEASED.

$15,791,454

Various bonds and notes

$14,576,689

$12,285,658

DEBT BEARING NO INTEREST.

United States Notes............
Fractional currency............
Gold certificates o f deposit.

$381,427,090 $376,235,626 $375,417,249
28,743,734
29,514,722
29,217,495
19,992,980
18,376,180
12,590,000
$430.163,804

$424,126,528

$417,225,344

A g g re g a te d e b t..........................................................................$2,685,773,540 $2,690,587,289 $2,663,713,374
C o in and C u rrency in T rea su ry ..........................................
142,423,791
159,823,399
140,285,304

Debt, less coin and currency,

$2,543,349,749 $2,530,763,890 $2,523,428,070

The following statement shows the amount of coin and currency sepa­
rately at the dates in the foregoing table :
Gold Coin.......................................................................
Currency........................................................................
T o ta l g old c o in and c u rre n cy . .........................................




Feb. 1.
Mar. 1.
April 1.
$97,354,604 $107,271,031 $105,956,477
45,069,187
52,253,368
34,328,827
$142,423,791

$159,823,399

$140,285,304

1867]

301

LETTER TO THE SECRETARY- OF THE TREASURY.

L E TTE R TO THE SECRETARY OF THE TREASURY,
RELATIVE TO A PROPOSED CHANGE

IN

THE

MINT

LAWS OF THE

UNITED

STATES UPON THE SUBJECT OF THE REFINING OF GOLD AND SILVER.
San F

r a n c is c o

, N o t. 13, 1 8 6 6 .

In compliance with your request I hereby submit to you
in writing a statement of such facts connected with our mining and mint­
ing operations as, in my opinion, are necessary to a clear understanding of
the important interests to which they are germain, and without which no
intelligent action can be taken.
I may be permitted to refer to the recent instructions o f the Secretary
o f the Treasury to Mr. J. Ross Browne, the special agent of the depart­
ment, as embodying succinctly the whole field o f inquiry upon these im­
portant.subjects. The Secretary justly observes that ‘‘ whatever tends to
develop the vast resources of our new States and Territories must add to
the wealth of the whole country
and he desires Mr. Browne to ascertain
“ what financial facilities may tend to develop the country and enhance
its products.”
Hiving yourself visited several o f our mining districts, it will be only
necessary to refer to your own sources o f information upon many points
o f inquiry connected with these subjects.
As an indication of the magnitude of our mining interests, I will here
merely premise that it would be an under estimate to say that the mines
o f this State, and the adjacent Territories which are tributary to it, have
for the past seventeen years produ :ed an average of $ 6 0 ,0 0 0 ,0 0 0 per an­
num, or an aggregate of $ 1 ,0 0 0 ,0 0 0 ,0 0 0 . And yet so unremunerative
are mining operations as a whole, that it would be difficult to-day to find
in this State one man for each $100,000,000 produced who has grown
rich by working the mines. There is no subject upon which there exists
such widely diffused error in the public mind as this, and perhaps there
can be no more overwhelming refutation o f the fallacy of these impressions
than the simple statement of the fact, which is within the knowledge o f
every one having any personal acquaintance with the history of our min­
ing operations. In early days, when the bars and beds o f our mountain
streams glittered with gold, and our surface diggings offered rich rewards
to individual labor, there were, doubtless, many who reaped golden har­
vests with little labor and no capital. But these have long since been ex­
hausted, and mining now can only be carried on successfully by a combi­
nation of labor and abundant capital. Indeed, mining here is not essen­
tially different from what it has always proven the world over— a faeinating illusion, in which the exceptional instances of success seem alone to be
remembered, and to supply tie incentive which still lures on its votaries,
regardless of the overwhelming preponderance of the disastrous experience
o f others. And yet, while it involves nine out of ten in heavy pecuniary
loss, it not absolute ruin, its result and effect is to “■enhance the product”
and “ add to the wealth of the whole country.”
The development, therefore, cf this important element o f national wealth
D ear

Sir :




302

LETTER TO THE SECRETARY OF THE TREASURY.

[April,

should receive every encouragement at the hands of the Government,
rather than be repressed by a system of taxation, which practically amounts
to the taxing the privilege of a man’s spending his own money for the
public good. However, many of the evils under which this important
interest has heretofore labored will doubtless be remedied by the mineral
land law of last Congress. There still exists the high mint charge and
the internal revenue tax of one-half o f one per cent., which resulted from
the various propositions to tax our mines. From the discussions in Con­
gress, this tax seems to have originated in the idea that individuals were
reaping private fortunes from the public domain without any return.
Apart from what I have already said upon the subject, you can judge
yourself how much foundation there is for this belief. But what I more
particularly desire to draw your attention to, is its unjust application to
foreign mines as well as domestic, the effect being to repel the products of
Mexico and British Columbia, and force them into other channels. This
is the result of making assayers the commissioners for the collection of the
tax, and compelling them to collect it upon all bullion which they assay.
It seems to me that if this matter was properly represented to the Com­
missioner of the Internal Bevenue, he would at once authorize assayers
and refiners, upon proper evidence of the foreign origin of bullion being
produced to them, to stamp it as such, instead of imposing upon it a tax
which was clearly never intended.
In reply, therefore, to the inquiry o f the Secretary, “ What financial
facilities may tend to the development of the country and enhance its pro­
ducts ?” I should unhesitatingly reply, a complete abrogation of all taxes
and restrictions upon mining enterprises and a radical change in our
whole system o f mining laws.
I f it be true that gold alone is the true measure of value, and that the
metallic wealth of a country is the only safeguard to national and individ­
ual credit or solvency in periods of fiancial disturbance, it would seem to
follow as a very simple principle of political economy that all legislation
upon such a subject should be directed to the encouragement of its im­
portation from abroad, and the retention in circulation of our own pro­
duction, or as the representative of other mediums of exchange, and into
which they are at all times convertible.
Yet, strange as it may appear,
all of our legislation upon this important subject has a directly opposite
tendency. Bv imposing high mint charges upon the recoinage of foreign
currency, and exhorbitant refining and revenue charges upon foreign and
domestic bullion, it deters the one from seeking our markets, and compels
our own to seek the cheaper markets of other nations, or, rather, where the
smaller charges make its commercial value greater than its minting value
at home.
While this subject has been engaging the attention o f the first states­
men o f Europe for the last three hundred years, and they have been con­
stantly modifying ttieir laws upon the subject, and adapting them to
the changes in domestic and international commerce, it has been almost
entirely neglected by our government. About the only thing it has
done since the discovery o f gold in this State, and the magnitude and
importance which the subject thereby acquired, was to pass the act of
March 4, 1863, looking to exclusion of refining from the mint, and
making the retrograde movement of creating, in addition to other de­




1867]

LETTER TO THE SECRETARY OF THE TREASURY *

303

ductions, a coinage charge, by the acts of February 21 and March 3,
1853.
The practical result of this is very apparent. These mint and rev­
enue charges now amount to about I f per cent, on gold deposits and
1\ per cent, on silver. By collecting these charges directly from the
owner of the bullion, as a deduction from its value, the minting or net
coining value per ounce, of our bullion, is reduced considerably below
its commercial value, which is governed by the foreign markets, where
no such tax or extortionate rate exists, and where minting expenses are
defrayed from the public treasury, or by some special tax upon some
article of general consumption, and not by a deduction from the value o f
the bullion.
The theory is a perfectly just one. The making of money is a necessity
o f government and a benefit to the entire community, and its expense
should be borne by them equally, and not solely by the few who produced
the material which enables the government to supply its own prime neces­
sities. There is no more justice in doing so than there would be to charge
the manufacturer who with his own capital and labor produces the parch­
ment or paper of which your currency is made with the cost o f engrav­
ing, printing, and other expenses of converting it into money. It is im
material to the government how the expenses of its mints are defrayed,
so it is done, yet it is very apparent that the particular mode by which it
is done may lead to the most important results, for it cannot be denied
that by raising the minting value of our bullion at home we not only re­
tain a much larger portion of it in circulation, but we at the same time
attract the products of foreign mines, for the same reasons that ours now’
goes abroad. The policy, therefore, of trying to make our mints selfsupporting at the expense of the mining interests only has not only being
a signal failure as a public measure, but is not sustained by the usages of
any other nation, and is opposed to every just principle of political econ­
omy. The remedy is apparent and easy.
The annual expenses of our
mints are a mere bagatelle in the general disbursements o f the govern­
ment, and it could well afford to thiow them entirely upon the general
treasury without its being felt. They are now principally owing to the
fact that, while other governments have long since restricted their mints
to the more legitimate operations of coining money only, our government
still adheres to the expensive practice of also refining the gold and silver
neeessary for this purpose. And while these charges are very high, and
operate as a very oppressive tax upon the miner, they altogether fail to
cover the cost. This is, however, in a great measure owing to the fact
that our mint officials have always exercised an authority in this particu­
lar matter that the law does not seem to sanction. It is very clear and
mandatory upon the point, and says positively that the charge shall cover
the cost, including material labor, wasteage, &c., and the authority which
it subsequently gives to change these charges from time to time clearlv
means such changes only as are necessary to make these charges conform
to the changes which from time to time may take place in the cost of ma­
terial, labor, &c.
Acting on their own interpretation o f the law, they have adopted a tar­
iff of charges quite as remarkable as their construction of the law itself,
and have made their charges in an inverse ratio to the cost. This not




304

LETTER TO THE SECRETART OF THE TREASURY.

[April,

only makes it necessary for the government to make large appropriation
every year to cover the deficiency, hut establishes an unjust tariff, to
which private refiners must conform, while it is clearly the desire of the
government that they should be encouraged, so as to relieve it entirely o f
this expensive operation.
I have no doubt that, upon examination, the
appropriations which the government makes annually to cover the defici­
encies of the mints, growing out of their refining operations, will be found
to exceed what it makes from its coinage charges ; and, hence, could they
get rid of the cost of refining, they could readily forego the small profit
they made from coinage, and be better off for doing so, while they, at the
same time, relieve the mining interests of the country from the oppressive
tax. Again, by the mint’s not making any difference between deposits ov
refined and unrefined bullion in the time of payment, the private refiner is
not only compelled to conform to the unjust tariff of the mint, but his bul­
lion, after it is refined, is used by the government to pay depositors whose
gold is not refined for several days subsequent, and all because the law
simply says that deposits shall be paid in the order in which they are made.
To accomplish all that the government desires, the piivate refiners only
want common justice, and they will soon so far outstrip the government
in the advantages they will offer the miner as soon to relieve it entirely of
the expense of refining. The government uses the tedious and expensive
process of lefining by nitric acid, (which alone can be used in the heart of
the city,) while private refiners employ the more expeditious and economic­
al process of sulphuric acid.
There are a number of ways in which the government can aid and
facilitate the consummation of this end if it so desires. The one which
seems to me best adapted to this country, where the people are so deeply
interested in the efficiency o f the mint, and are so jealous of everything
touching their peculiar interests, would be to have Congress give to the
Secretary of the Treasury authority to contract with private refiners for an
exchange of the crude bullion deposited at the mint for bullion fit for
coinage or for gold coin, less such charges as might be agreed upon. This
course has the advantage of relieving the government of all risk on the
one hand, while it secures to the miner the benefit of the government assay
and the government responsibility. When this is once accomplished the
coining value of our bullion would at once become greater than its com­
mercial value, and the result would be that the entire produce of our
moneys would be coined at home, and here, at least, we would be relieved
of those constantly recurring periods of stringency in the money matters
growing out of the demand for, and shipment abroad of, our bullion.
During your sojourn here you doubtless learnt enough of our peculiar
system of exchange with the interior to understand that while the coinage
of about $20,000,000 per annum seems to answer all o f our wants as a
circulating medium, yet nearly our entire product is made to answer the
purpose of coin, being remitted from the interior in payment o f merchan­
dise sold by our merchants.
It is clear to my mind that if the government would repeal the coinage
and internal revenue tax upon all bullion, and give such encouragement to
private refiners as would secure to the owners o f the bullion the benefits
of their more moderate charges, the results which would accrue to the
country in the reduction of the price o f gold, and the consequent advance




1867]

"WOOL AND WOOLEN MANUFACTURES OF CALIFORNIA.

305

in our national securities would much more than compensate for loss o f
revenue now arising from those sources.
In connection with this subject it has occurred to me that if the govern­
ment does not deem it expedient to throw the expenses of its mints upon
the general treasury, a tax might be imposed upon bills of exchange, drawn
against shipments of specie or bullion, that would answer all the purposes
of the coinage and revenue charges now made, and at the same time serve
the further purpose of raising the coining value o f our bullion at home,
as I have before observed, and likewise impose an additional obstacle to
its shipment abroad; and all tending to the enablement of our government
to return to a specie basis at an early day.
The difficulties of treating these important subjects within the limits of
a hurried letter must at once become apparent to you, and I have there­
fore not attempted to do more than give you a general outline, with a few
of the more important facts and considerations appertaining to the subject.
If the suggestion which I have thrown out was adopted, and the mints
were allowed to exchange crude bullion for bullion fit for coinage, they
would at once be relieved of the expense and necessity of refining; hut
if it be deemed best to bring about that result by degrees, it would per­
haps be best accomplished by giving such a preference to the bullion re­
fined by private enterprise as would make it to the advantage of the de­
positor to patronize such establishments, and it would, in my opinion, be
better to relieve such bullion of the coinage charge than it would to limit
the amount to be received by the mint, as now provided by law.
Very respectfully, your obedient servant,
Louis A. G a r n e t t .
John Jay Knox, Esq.,
Treasury Department, Washington, D. 0.

AVOOL AND WOOLEN MANUFACTURES OF CALIFORNIA.
[From the San Francisco Mercantile Gazette, Jan. 9, 1867.)
The year closed upon a market exceedingly depressed and with scarcely a hope
of speedy improvement. The causes producing the condition of the market,
noticed in our statement for the quarter ending October first, have been in no wise
improved, and still continue to present a foreboding outlook for the future. It
is true something is anticipated from the probable action of the present Con­
gress upon the tariff question, but it is questionable if any changes that may be
made will prove of more than temporary benefit, and they may fail even of that
Within the past four years the increase of woolen manufactures in the United
States has been immense, and fully enough to supply the American markets
from the product of American looms, a most desirable event if it could be made
practicable. But notwithstanding a tariff of nearly fifty per cent, on the cost
of manufactures, and in face of this abundant supply of machinery for the pro­
duction of all the fabrics we may need, our imports have been on a scale of
unsurpassed magnitude and our markets completely glutted with goods of foreign make. The fact seems to be that the American markets have been so long




306

"WOOL AND WOOLEN MANUFACTURES OF C ALIFO RN IA.

[April,

a source of profit to foreigu manufacturers that they contemplate exclusion
from them with extreme reluctance, and having as yet no other outlet for their
products, are prepared to encounter losses if necessary to retain possession. The
contest is between the enterprise,'skill and energy of American manufacturers
and the cheap labor of Europe, and the apparent protection extended to our
manufacturers by the present tariff is nearly or quite neutralized by the high
cost of labor, oils, dye-stuffs, etc., which are all enhanced by similar duties, and
the various Government taxes to which they are subjected. Under the existing
condition of the commercial and financial interests o f the country, the high
duties at present enforced only add temporarily to the Government revenue at
the expense of the consumer, and without protecting our own industries in any
degree. It would seem as if further increase in tariff rates would only result in
adding to the burden of consumers without materially benefiting manufacturers
or wool growers; and until the whole course of our commercial relations
reaches a settled and healthy basis, the joint interests of wool growing and wool
manufacturing must continue subject to fluctuations that cannot be forseen, and
labor under depressions like the present. Our local manufacturing interests are
probably in a better condition than those of any of the Eastern States, having,
in the abundant supply of cheap Chinese labor an ample market for their pro­
ducts at their own doors, and entire exemption from any currency fluctuations,
great advantages over any of the New England factories ; and while the latter
have been making continuous losses through the past year, the former have
marked up haudsome margins of profit. The additions to the woolen machinery
on this coast have been important, and will increase the total consumption for
1867 probably very nearly thirty-three per cent, over the year 1866. This is a
fact of great importance to our wool growers, and should encourage them to in­
crease their products even in the face of one or two years of low prices, and
should stimulate them to the exercise of the greatest care in the making up of their
crops for market. The following internal revenue tax has been paid in this city
from December 1st, 1865, to November 30th, 1866, upon manufactured goods :
Pioneer Woolen Mills—woolen fabrics, $578,351 ; clothing, $419,979. Mission
Woolen Mills—woolen fabrics, $629,859 ; clothing, (September, 1866, to No­
vember 30th) $74,959. This latter company manufactured a large amount of
army clothing for troops here and in the East, and in the State Prison, not in­
cluded in the above. We present our annual tables, of receipts and shipments,
and add some brief memoranda of the successive years since 1861 :
RECEIPTS (IN BALES).

First quarter.............................................
Second quarter........................................
Third quarter...........................................
Fourth quarter.........................................

1862.
70
15,784
5,878
5,906

Total ................................................... 27,133
Deduct received from Oregon, Sandwich
Islands, etc...............................................
2,051
Production o f California proper.......

25,087

1863.
613
21,201
4,327
7,340

1S64.
1,014
21,498
5,534
5,163

1865.
511
17,191
5,873
6,698

1866.
661
17,392
5,603
7,292

33,481

33,209

29,273

30,958

1,714

2,151

3,955

3,766

31,767

31.C58

25,315

27,187

TOTAL RECEIPTS ESTIMATED IN POUNDS.

1862.

1863.
6,559,885
342,800

1864.
7,236,514
430,200

1865.
6,455,070
791,600

1866.
6,546,750
753,200

5,753,731

6,902,685

7,666,714

7,246,670

7,299,950

California......................
Oregon, etc.................. .
Total




1867]

307

-WOOL AND WOOLEN MANUFACTURES O F CALIFORN IA.
SHIPMENTS (IN BALES.)

1862.
22,348

1862.
11,316

1864.
15,998

1865.
15,329

1866.
10,165

To the above receipts should be added the Pulled Wool made in San Francisso, which figures among the shipments or in consumption, and is estimated
for the year at about 700,000 pounds, and with the estimated amount of all
kinds now on hand would give the following approximate figures :
Kegular receipts from all soarces, (lbs)............................................................ 7,299,950
Amount ol Pulled Wool made in San Francisco.............................. ..............
700,000
Total stock.................................................................................................................... 7,999,950
Exports per manifest weights, (lbs.)................................................................. 4,635,000
Fleece W ool on band, estimated........................................................................ 500,000
Pulled W ool on bund, estimated........................................................................ 109,000
------ ---- 5,235,000
Balance retained for local consumption, (lbs)............................................................... 2,764,950

In presenting the following brief mention for the years 1861 to 1866 inclu­
sive it may be necessary to remark that through the whole Pacific coast Sheep
are raised wholly on the natural pasturage throughout the year, hence the
changes of the weather and condition of grazing through the early winter
months controls the condition and character of the succeeding clip very greatly.
1861.
—The clip of this year was generally in very fair condition, the bulk of
it being of low grade, with a large proportion of kempy and coarse wools; still
the staple was sound and open, and the skrinkage light. The amount received
at San Francisco from all sources was estimated at 4,600,000 lbs. Prices
ranged from 6c to 16c. the highest point having been 19|c. The market was
depressed by the excitement attending the commencement of the war.
1862.
—The winter of 1861-2 was marked by an immense rain-fall, continued
until to-wards April. The interior valleys were generally flooded and the loss
of stock of all kinds very large. Owing to the excessive rains the clip came for­
ward very nearly as light as washed wood ; and as the forage was abundant, the
staple was fairly healthy. The first receipts of the season were March 8th—
prices opened at 19@21c., advanced to 23@23c.; in April, 24c.; in June and
July 26@28c. The fall clip began to appear in August, opening at 21@22c.,
and maintaining that range strongly to the close of the year. Gold opened at
101, reached 137, and closed at 133.
1863.
—The winter of 1862-3 was much drier than the preceding year, though
sufficient rain fell to produce an abundance ot grasses, etc. The clip of Wool
was generally in good condition, and the efforts of the wool growers to improve
their flocks by introducing Merino crosses, and by throwing out the kempy and
inferior Mexican stock, made a marked change in the quality of the Wool. The
market opened in April at 24c., advancing to 26c., and as high as 30c. for some
choice lots. Through May prices ranged at 24@29c ; through July at 23@26c.
Fall clip opened in August at 201c., advanced to 23@25c. iu September, 26@
27c. in October, and closed in December at 22lc. Gold opened at 134, reached
172, and closed at 152.
1864.
—The winter of 1863-4 was pre-eminently the dry season ; but little rain
fell, and the prevalence of cold, dry north winds dried the surface of the ground,
and checked vegetation, so that the opening spring found the pasturage worse




S08

W OOL AND WOOLEN MANUFACTURES OF CALIFO RN IA.

f April,

than at the close of the previous autumn. The sheep were pinched and poverty
stricken, and the clip of wool consequently inferior—it was defective in staple,
loaded with dust and dirt, and in all respects bad, The market opened March
16th at 24c, ranged from 20@24c. through April and May, reached 23@25c. in
June, with occasional sales of choicer lots at 27@28c., and fell back in Juiy to
21@23c. Fall clip opened in August at 21c., maintained about that point through
the fall, and declined in December to 16@18c. Gold opened at 152, reached
285, and closed at 228.
1865.
—The winter of 1864-5 was somewhat more favorable to general farming
interests, sufficient rain having fallen to produce fair crops of grain and grass ;
but the first storms were severe and cold, and stock of all kinds prostrated by
long starvation, perished by thousands. The loss of sheep was variously estimated
at 25@33 per cent, of the entire stock. The spring rains were scanty and not
sufficient to cleanse the wool at all; the whole clip went forward to market dirty,
greasy, weak fibred and short stapled—the poorest clip that California ever pro­
duced. Despite the poor condition, prices ruled high throughout the year. The
first arrival was March 15th, and brought 24c. Through April and May prices
ranged from 20@24c., with occasional sales at 26c., and through June and July
22j@24Jc. Fall wool opened at 17@18c., advanced to 21@22c., and closed in
December at 20c. Gold opened at 230, declined to 130, and closed at 145.
1866.
—The winter of 1865-66 was one of the most favorable possible. Dur­
ing October and November sufficient rain had fallen to start the grasses finely.
There was no perceptible change in the condition of the flocks of sheep in the
transition from the autumn feed to the new grass, and early in the year it be­
came apparent that the coming clip would be of unusual excellence. The result
has fully justified these expectations, and it is doubtful if a better clip was ever
marketed in California. In the amount of wool most calculations have been dis­
appointed ; it has not equalled the estimates, though it may be that the low state
of the market for Fall wools tended to keep some clips back in the country, and
deter many farmers from full shearing. The market opened in March at 21c.,
advanced to 22@23c., with occasional sales at 24@25c., and receded in July to
19@21c. Fall wool began to arrive in August, with sales at 17@18c., and has
steadily declined since, closing at 12@14Jc. for good to choice without buyers,
and in larger stock than was ever known at the same period.
Thus far the winter of 1866-7 has been more favorable than that of 1865-6.
The rains have been copious and the weather uniformly warm. Grasses never
showed so large a growth at this period of the year. The sheep are in unusually
good condition, and the prospect for a large increase from the flocks is very ex­
cellent. Should we get our usual March rains the coming clip will excel any yet
produced in California, and in any event it cannot fail of being every way de­
sirable. In amount it may not largely exceed that of 1866, as the consumption of
mutton has been unusually large, and so far as the production of wool is concerned
each mutton sheep may safely represent two yearling lambs. As approximate esti­
mate, we may expect for the year 1867 the receipts of this port to equal nine
million pounds ; the local consumption to reach four million—leaving for export
about two million pounds. Looking over the whole field, our wool growers have
no cause to remit their efforts to increase and improve their flocks; the depres­




1867]

A N SW ROUTS A C R 0S8 SOUTH AM ERICA.

309

sion in the wool market cannot be continued more than a year or two, and may
possibly be relieved earlier than is now expected, and, in the meantime, the de­
mand for butchering purposes is such as to guarantee a profit in raising sheep,
independent of their product of wool.
Oregon has increased its shipments to us but very little ; such wools as have
come from them have maintained the past reputation for excellence, but the in­
crease of manufactures there, is gaining steadily on the production ; and bids fair
to absorb it ere long. Small as the increase of export has been this year, it
compelled some of the mills to draw upon California, and some parcels have been
shipped to Oregon within the past few months, but the amount so sent was but
trifling, and confined to the lowest grades.

A NEW ROUTE ACROSS SOUTH AMERICA.

The following translation of an article from a Lima newspaper, E l Nacional, of
January 21, descriptive of a new route opened up between the Pacific and the
Atlantic :—
By this recent discovery the navigation of the rivers which rise in the Andes
of Peru and flow into the Atlantic is brought within 70 leagues of the Pacific
Ocean, at the seaport of Huachio, 63 miles north north-west of Callao. The
President of the Republic and the community should rejoice, for the transAndine navigation to the Atlantic has been just definitely established. The
steamers Mayo, Putumayo, and Morona are at only the distance of 70 leagues
from the shores of the Pacific. In eight hours by railway this distance may be
traversed, and our communication by the Amazons Opened up with the Atlantic.
The young Prefect of Loreto, Don Benito Arana, proposed to General Prado
(President of Peru) the naval exploration of the rivers with the three steamers
above mentioned. Being folly authorised by his Excellency the President,
Arana set out on this expedition, and on the 1st January, 1867, at five p .m.,
the steamers Mayo and Putuymayo cast an anchor on the port on the river
Mayro, which henceforward will be known to the world by the name “ General
Prado.” The Morona arrived a few hours later.
Notwithstanding the inconvenience which attended the navigation, the vessels
have reached the Mayro in good condition ; but having found the port deserted,
and being short of provisions, they sent commissioners to Profure, and, when
supplied with necessaries, the steamers will return to Iquitos. Senor Arana is
expected to arrive in Lima by land, to give verbal information on the particu­
lars of his glorious enterprise. The expedition was not entirely pacific. Our
readers may remember the unfortunate incidents which gave rise to the catas­
trophe of Tavara and West, killed and devoured by the Cashioo man-eaters.
Arana resolved to seize such as appeared culpable ; and on the 7th December
he disembarked on the banks of the Pachitea. The Indians resisted, and
attacked with bows and arrows the party of Arana, who, at the sound of con­
flict disembarked the crew of his ships. The fight lasted five hours, and was
protracted by the forest, behind the trees of which the Indians sheltered them­




310

IRISH SEA FISHERIES.

[April,

selves. A t last they fled in terror, leaving upwards of twenty of their tribe
dead on the ground. By the declaration of two woman and thirteen boys who
were taken prisoners, and sent to the village of Cashiboya,it appears that among
the slain were found the prineipal assassins of the ill-doomed mariners, Tavara
and West.
The enterprise of Orellana, Orzoa, Tejeira, Acunha, Fritz, Condamine, and
many other coadjutors of Christian civilization, is at length completed, through
the exertions of the young and enthusiastic Prefect Loreto, assisted by the meri­
torious officers in command of our steamers. They have thus realised the unity
of Peru, and opened up for our commerce with Europe a new and rapid means
of communication.
The correspondent adds—“ The arrival of the Peruvian steamers at the port
of ‘ General Prado ’ on the Mayro will probably stimulate the patriotism of
the present Supreme Chief of Peru to open a railway from Huacho to the head
stream of the navigation of the Amazonas during his day of brief authority,
and before the exhaustion of the guano of the coast—which otherwise may
soon disappear, and leave behind no lasting work of improvement, in roads or
bridges, to facilitate and extend the’ vast natural resources of the Peruvian
Republic.”

IRISH SEA FISHERIES.

The Commissioners for administering the laws relating to 1he deep sea and
coast fisheries in Ireland report upon the whole in the year 18C5 the continuance
of a manifest and decided improvement in the condition and progress of those
fisheries as compared with their state a few years back, an improvement, how­
ever, scarcely, if at all, apparent this year on the western and northern coats,
partly owing to the loss by emigration of the more able men, the poor condition
and equipment of the boats, and the wants of an immediate and remunerative
market, but partly also, it seems, to real scarcity of fish. But the return of the
herrings to the east coast and the success of mackerel fishing in the deep sea have
given confidence to the Irish fishermen ; and the haddock and whiting, which for
a very long time had scarcely been seen on the coast, re-appeared last year. The
oyster fishery is not in a prosperous condition— not owing to any decline conse­
quent on natural causes, but to the increased demand and price stimulating
dredging to an extent which the beds are unable to bear. The commissioners
have extended the close season on the southeast coast, and encouraged the forma­
tion of private layings with a view to create sources whence the public beds may
be re stocked. They feel obliged to dissent from the recommendation of the royal
commission in reference to the abolition of a close season for the oyster fishery,
and the removal of the restrictions on trawling on the banks along the coast,
believing that the fish ought to be left undisturbed during the spawning season.
The coast guard returns for 1865 show that there were employed in fishing 8,989
vessels, 35,184 men, and 2,730 boys—a decrease, as compared with the previous
year, of 311 vessels, 2,232 men, and 794 boys; 6,582 tons of fish were conveyed
by railway in Ireland in the year 1865, being 230 tons more than in the pre­
vious year.




186?]

STATISTICS OF COAL.

311

STATISTICS OF COAL.

An interesting Blue-book has just been issued by Great Britain containing
reports from Her Majesty’s Secretaries of Embassy and Legation respecting the
production of coal in different countries. According to these reports the pro­
duction of coal in Austria in 1864 was 4,499,133 English tons ; in 1855 it was
2,028,089 tons. In Bavaria, in 1865, the quantity of stone coal and brown coal
produced was 435,602 tons; in 1859 the quantity was 260,000 tons. In Belgium
the number of coal mines was 287, and the amount of coal obtained in 1865 was
11,840,703 tons, the quantity exported in the year being 3,568,406 tons. In Brazil
there were no extensive workings of coal. Some of the coal-beds, however, were
of great depth, and presented great facilities for working by open quarrying. In
France in 1864 the production was 11,061,948 English tons ; in 1865 it was
11,297,052 tons. In the year the import of coal amounted to 7,108,286 tons,
of which 1,455,206 tons were drawn from Great Britain ; the exports in 1865
were 335,126 tons. Prussia is rich in mineral fuel; the total amount of stone
coal and brown coal produced on an average in this country in 1864 was 21,465,600 English tons ; in 1860 it was 13,543,000 tons. The coal-pits of the
river Ruhr extend over ten miles in length, a Prussian mile being equal to
24,000 Prussian feet, nearly 4 2-3 English miles. The western parts of Prussia
are so richly furnished with mineral fuels, particularly with coals, that they do
not depend for their supply on foreign countries, but rather give up a great part
of their coal produce to the latter. In Russia no coal is exported, although the
beds of the Donetz are rich in coal and other minerals; the amount of coal
produced in this place was 128,571 tons ; but this is a very insignificant quantity
compared with the enormous mass of coal which the Donetz is capable of fur­
nishing. In 1842 there were only 225 beds in a working condition, whereas
now there are about 700, and each year the spring rains bring to light others.
Coalfields also exist on the western flank of the Ural mountains. Five hundred
and fifty-four thousand eight hundred and fifty-eight English tons were imported
into Russia in 1865. No coal is exported from Spain, and the qnality raised
in the country is chiefly used for making coke and artificial fuel. Oviedo fur­
nishes more than any other province, in 1863 it furnished 307,396 tons, the
total produce being being only 401,297 tons. Spain may be said to be depen­
dent on England for her coal, notwithstanding the internal resources of the
country. The effect of the differential duties has been to enhance the price of
of coal, while in their protective capacity they have in nowise assisted native
production. In the United States the amount produced in 1865 was 17,417,617
tons. Out of this quantity Pennsylvania alone produced 13,000,000 tons. It
is estimated that the Illinois coal-fields contains 1,277,500,000,000 tons, and that
it would take 100,000 years to exhaust them ; yet the United States, with their
enormous productive resources, raise now but the paltry amount of about 20,000,000 tons. In New South Wales the supply of coal is very great. The
quantity exported from the port of Newcastle exceeded 12,000 tons a week.
In the United Kingdom in 1863 88,292,515 tons of coal were raised, and in
1865 the quantity had increased to 98,150,587 tons.




312

CO TTON

AND

SILK

FR A U D S

IN

C H IN A .

[April,

COTTON AND SILK FRAUDS UV CHINA.

The Chinese, says a Shanghai exchange, have discovered a very admirable and
simple method of making money. Everything being sold by weight, and water pos­
sessing a definite specific gravity, they have found it a desirable plan to add that
element to produce of all descriptions ; as, on account of its comparative cheap­
ness, it shows a handsome profit if sold at the market price of any article what­
ever. As many of our readers know to their cost, picul upon picul of water has
been sold as cotton, as sugar, as hemp, as seaweed, and indeed in the form of
almost every article of produce in the country. It is chiefly, however, in the
shape of cotton that the greatest trade in water has hitherto been carried on.
Though people grumble a good deal, they went on buying their 93 catties of cot­
ton and seven catties of water at market rates pretty freely ; but in the course
of time they got more cautious, as sundry cargoes instead of arriving the spot­
less white substance they were shipped, turned out the equally useful but less
customary color of black. The plea always set up by the Chinese dealers was,
that it was utterly impossible to obtain dry cotton, because the countrymen who
sold it in small quantities, commenced the process of wetting it almost as soon
as it was picked. This statement, we have good reason to believe, was true up
to a certain point; that is, the countrymen did wet cotton to an extent; but
while dilating this circumstance, the honest dealers forgot to mention that they
themselves added a reasonable amount of water on their own account. The ces­
sation of demand for this staple among foreigners has made it difficult to ascer­
tain whether it be possible to obtain from the Chinese positively dry cotton ; but,
anyhow, an improvement was effected when the foreign merchant discovered that
in buying wet stuff he was not only submitting to a fraud, but ran the risk of
having his whole cargo so much damaged as to become almost unsaleable. The
Chinese were considerate enough to reduce the wetting down to a safe shipping
point: that is, to some four or five catties in a picul; thus clearly proving that
it was not the countrymen alone who were responsible for the previous more se­
rious adulteration. We believe we may state with safety that scarcely any cot­
ton has been shipped from this port not containing from four to five per cent, of
water. That is, in other words, a merchant nominally buying 1,000 piculs of
cotton, in reality purchased 950 piculs of the staple and 50 of water ; and his
invoice if strictly made out, at say 20 tls. per picul, should have run—“ Cotton,
raw Shanghai, 950 piculs, at 20 tls., 19,000 tls ; water, Shanghai unfiltered, 50
piculs, at 20 tls. 1,000 tls.” But as this was generally considered an unneces­
sary amount of commercial purism, and might have been looked upon as pedantic,
the cotton and the water were lumped together and the difference appeared in
the account sales, either in lowness of price or loss in weight. Last season, how­
ever, complaints were made that this ingenious principle in Chinese trading was
applied to raw silk ; and, although it was not considered very much out of the
way to buy water in bales of cotton at 20 tls. per picul, people began to think
the article a little dear when it was offered them in bales of silk at a cost of over
400 tls. The silk inspectors addressed a letter to the Chamber of Commerce,
complaining of the Chinamen having sold them water at so high a figure, but the
chamber did not perceive that the silkmen had been absolutely called upon to
take it. Crave fears were, however, expressed that the attempt to wet silk might
be renewed this season; and as the possibility of such an occurrence taking place
is a serious consideration, it is certainaly desirable that merchants should, at the
outset, be on their guard and not allow the commencement of a similar system
with regard to silk as that which proved so fruitful a source of loss, and of dis­
putes with reference to cotton.




1867]

'

C O M M E R C IA L

C H R O N IC L E A N D

R E V IE W .

313

COMMERCIAL CHRONICLE AND REVIEW.
Public Debt for March—Business this month—Rate o f Interest—Course o f Gold, Exchange,
&c.—Five-twenties, &c., at London—Price o f United States Bonds for March, &c.

The statement of the public debt for March, which we publish this month, is
the most favorable in all respects that we have been able for a long time to lay
before our readers. In consequence of the falling off in the internal revenue
there is but little diminution of the net aggregate, which is 2,523 millions,
against 2,530 millions a month ago. The decrease of seven millions has been
made by the sale of between five and six millions of gold. This small diminu­
tion of the total of the debt is regarded as a point of less importance by the
public than it was some time ago. Experience has shown us that until our in­
ternal taxation is better adjusted, and more skilfully distributed, a needless op­
pression of the productive power of the country would be induced by the at­
tempt to pay off from this source any considerable amount of the public obliga­
tions. The voice of the country is for reducing taxation to such limits as will
pay the expenses of the Treasury and meet the interest on the Government
bonds. When by careful adjustment we find out at what points the pressure of
taxation may rest with the least injury to the country, increase the pressure and
tighten the fiscal screw as the gradual recuperation and growing strength of the
tax-paying power of the country may justify. In this point ol view, then, Mr.
McCulloch has met the wishes of the people.
But although so small a reduetion of the debt has been made, the changes effected
have all been in the right direction. In the first place, the currency balance in the
Treasury has fallen to a lower point than for many months past. No less than eigh­
teen millions of this idle money have been used to pay off interest-bearing secur­
ities of short dates. In making this reduction Mr. McCulloch has been obliged
to draw down the balances in the National Banks to an unusually low point.
A stringency of limited extent and brief duration has resulted from this with­
drawal of balances. For the banks, although they pay no interest on the Gov­
ernment balances, are tempted to lend them to their dealers in order to gain in­
terest. A t this time of the year there is always a great pressure on the finan­
cial machinery of the country in consequence o f April payments in the agricul­
tural districts, and this pressure cannot fail to be increased by the sudden taking
away of heavy Government deposits. The trouble and embarrassment hence
resulting would not, however, have been so serious had not the preparations the
banks found to be necessary for their quarterly statements, been making just at
the same critical time. From the mischievous, and, to some extent, unexpected
results which have come from this untoward combination of forces acting to­
gether on the money market, at a time when it was from other causes in a state
of extreme sensitiveness, we may derive new confirmation of the often proved
remark that the Government deposits are an injury to business, and a snare to
the banks. Now, that these mischievous deposits are removed, we trust they
VOL. A T I,---- NO. V I.




20

314

C O M M E R C IA L

C H R O N IC L E

AND

R E V IE W .

[April,

will not be allowed again to accumulate in so inordinate a degree as has been
but too frequent in the past.
Then, again, Mr. McCulloch has acted in the difficult duty of contraction with
all the caution that could be desired. Under the act of April 12 he is bound to
withdraw greenbacks if in his opinion it can safely be done. But the monthly
maximum is not to exceed 4 millions. Under existing circumstances he has very
properly refrained from contracting more than about one-fifth of this amount or
$818,378, which represents, we presume, the mutilated notes which have ceased
to be fit to pass current and have come in for redemption. For the same cause
the fractional currency has declined $297,228, so that the volume of the currency
has been contracted by a little more than one million of dollars. Probably the
most suggestive and gratifying feature of the report, however, is found in the
short date obligations which have caused so much apprehension. Of these no
less than 54$ millions have been paid off, 50 millions being the amount of the
Seven-thirties alone. If we mistake not the aggregate of the Seven-thirty notes
has never before suffered so large a reduction in any one month. It is now re­
duced to 582 millions; o f which less jprobably than 100 millions fall due in
August next. The embarrassment which the Treasury has looked for from these
notes is now, therefore, at an end, and the rapid acceleration of the rate of con­
version fully confirms the opinion we have ventured to express that if vigorous
efforts are made by the department and its agents the Seven-thirties, the com­
pound notes, and all other short obligations outstanding can be so far funded
before the time o f maturity that no trouble need be apprehended from this cause.
If Congress will resolutely refuse to add to the existing debt, and will turn a deaf
ear to all the schemes which are concocted for that purpose, the existing debt,
whether floating or semi-funded, will easily be provided for.
As to the gold-bearing bonds, there is little to be said. The Five-twenties
have been increased $34,723,000. From the defective way in which the state­
ment is made out we are unable to say what proportions of these Five-twenty
bonds belong to each of the four issues. The .impression prevails very exten­
sively, however, that there has recently been an emission of several millions of
bonds of 1864, the aggregate of which was one hundred millions originally. No
notice has been given to the public of any such issue, the understanding being
that no Five-twenties of any sort are now being put out, except the fourth series,
the interest of which is payable in January and July. It is very important to
holders of securities, whether of the government or of private corporations, that
no secret issues should be made, but that all new emissions of bonds should be
made with as much publicity as possible. The propriety of this rule is seen at
once, if we remember that the quantity of any species of bonds, pressing on the
market at a given time, forms an important element in regulating the market
price. Hence a secret issue of aDy securities is regarded [as an injury to the
holders of such securities. By parity of reasoning the buying up of any such
securities should be public. Accordingly, the British government, when pur­
chases are made of consols, on account of the Sinking Fund announces the fact,
and the amount of the purchase is on the same day made known at the Stock
Exchange, and in the money articles of the London journals. This principle of
publicity is of greater importance than has been supposed j and now that there




1867]

C O M M E R C IA L

CH R O N IC LE

AND

R E V IE W .

315

is an end of all the reasons for it, which originated in the exigencies of
the war, this principle should be adopted in all the negotiations of the Treas.
ury.
The course of business during March has shown some symptoms of improve­
ment. While trade cannot be said to have been healthy, it has yet perhaps re­
alized, in respect to activity, all that was anticipated at the opening of the
year. In most branches of merchandise the supply of goods appears to have
been in excess of the demand ; and henee, as a rule, holders have found it neces­
sary to concede a steady reduction of prices, and both manufacturers and im­
porters have found the result of their operations far from satisfactory. The
manufacturers of cotton and woolen goods have not produced to the full extent
of their capacity; but the limitation of the supply of fabrics appears to have
had no other effect than to partially errest the downward course of prices. The
importation of dry goods from January 1st to the close of March aggregates
€30,223,631; which though $15,150,000 less than for the same period of last
year, is yet $19,770,000 mor i than during the first, quarter of 1865; and in the
present depressed condition of the trade of the country, must be considered an
excessive supply. This large supply of foreign fabrics, selling in many cases
much below cost, has of course produced an active competition with domestic
goods, and fostered the prevailing depression in the home market. The back­
wardness of collections in the West, and the unsatisfactory accounts of business
given by buyers from fhe interior generally, indicate that the burthens of taxa­
tion and the inflation of prices and of rents are at last seriously limiting the abil­
ity of consumers to purchase, and clearly show that, unless the case be met by
carefully adjusting the supply to the demand, both manufacturers and importers
must suffer heavy losses upon their operations.
Monetary affairs have been generally dull throughout the month. The loan
market has been, upon the whole, quiet; though the rate of interest on demand
loans has not ranged below 6 per cent, on stock collaterals. An unusually large
amount of stocks are at present held by brokers, who have to depend upon the
banks for carrying them ; and this fact, rather than any activity in loans, has
steadily sustained the rate of interest. Toward the close of the month, the pre­
parations of the National Banks for their quarterly statement, required to be
made up on the first Monday of April, caused a general disturbance of deposits
and of loans, and produced during the last few days, a firm 7 per cent, market.
Although it is for many reasons important that the banks should make frequent
exhibits of their condition, yet the existing plan of making a return on a day
foreknown to the banks, is really of little value as a means of ascertaining their
condition, while it is productive, every three months, of much inconvenience to
business. The banks temporarily shape their accounts for the occasion, and in­
stantly relapse into a condition which they had deemed unfit for a public exhibit.
In the discount market there has been a decided recovery of confidence. Really
prime paper has been in active demand at 6j@ 7i per cent., both from the banks
and private investors, but lower grades have accumulated in the hands of dealers,,
and have been negotiated at high rates.




316

C O M M E R C IA L

C H R O N IC L E

AND

[April

R E V IE W .

The following are the rates of loans and discounts during the month of March :
BATES OP LOANS AND DISCOUNTS.

March 2. March 9. March 10. March 23. March 30.

Call loans..........................................
Loans on Bonds and Mortgage. . . .
A 1, endorsed bills, 2 m o s .............
Good endorsed bills, 3 &4 m o s ...
“
“
single names.
Lower gra d es....................................

6@ 6
6 @ 7
6-£@ 7|
7 @ 7%
7 $@ 9
8 @10

6 @ 6
6 @7
6J@ 7
7 @ 7|
7i@ 9
8 @ 10

5 @ 6 j6@7
6 @7
6 @ 7
6£@ 7|
7 @7 i
7 @ 7£
7J@ 8*
7^@ 9
7^@ 9
8 @10
8 @10

6 @ 7
6 @ 7
7 @ 7\
7i@

8

7 j@ 9
8 @10

The course of stock operations has not varied materially from what is usual
at this season of the year. Operations have been principally on brokers’ own
account, and the prevailing temper of the market has favored lower prices. Dur­
ing the latter half of the month, the anticipation of the usual Spring campaign
caused some of those who had been operating for a decline to become buyers of
stocks, and gave a firmer tone to the market. The total transactions in stocks
at both boards, for the month, amount to 1,825.802 shares, against 1,968,839
for the same period of last year. The volume of shares sold at the boards in
January, February and March, and the total since Jan. 1, is shown in the fol­
lowing statement:
Bank shares.
Railroad “
Coal
Mining
“
Improv’nt “
Telegraph u
Steamship"
Other
“

January. February.
2,461
1,929
2,200,510 1,282,251
24,286
10,369
65,375
29,980
20,344
18,950
49,501
33,857
56,504
91,618
4,703
6,409

March.
3,425
1,597,017
33,145
28,502
41,975
34,615
80,561
6,562

Since
Jan. 17,815
5,079,778
67,800
123,857
81,269
117,973
228,683
17,674

At Regular Board.....................................................
At Open Board........................................................

765,359
1,658,325

634,121
841,242

672,926
1,152,876

2,072,406
3,652,443

Total 1867........................................................ 2,423,684
Total 1866......................................................... 2,459,817

1,475,383
1,743,431

1,825,802
1,968,839

5,724,849
6,136,087

United States securities have been upon the whole inactive, and have reacted
from the high prices reached at the close of February. While there has been
no foreign demand, and the price of gold has declined about six points, there
appears to have been a steady flow of bonds out of the hand of traders, com­
pelled probably by the pressure of the times; and these circumstances appear to
have chiefly contributed to the fall, ranging from J to 1^- on the several classes
of bonds ; the only exception being in the case of the new Sixty-fives. The
amount of Government bonds and notes, State and city bonds and company
bonds, sold at the Regular Board, in the last three months, compare as fol­
lows :
Jannary. February. March. SinceJan. 1.
United States Bonds......................................... $6,863,300 $6,150,300 $5,689,050 $18,702,650
United States Notes..........................................
1,988,200
1,764,850 1,039,430
4,792,480
State and City Bonds.........................................
2,524,800
2,422,800 3.936,500
8,884,100
Company Bonds...................
732,500
752,200
731,500
2,216,200
Total, 1867 ...............................................$12,108,800 $11,090,150 $11,396,480
$34,595,439
“ 1866 ............................................... 12,155,790 f 622,000 10,622,S40
32,600,510




1867]

CO M M E R C IA L

C H R O N IC L E

AND

317

R E V IE W .

The following are the closing quotations at the regular board to-day, com
pared with those of the six preceding weeks :
Cumberland Coal............
Quicksilver....................
Canton Co.......................
New York* Central..........
E rie.................................
Hudson K iver.................
Reading...........................
Michigan Southern........
Michigan Central............
Cleveland and Pittsburg.
Cleveland and Toledo___
Northwestern .................
“
preferred..
Rock Island................. -.
Port W ayne....................
Illinois Central...............

Feb. 21. Feb. 28.
30%
39
45
46
22%
23%
102%
101%
56%
55%
134%
137
104%
102%
72*
72%
107%
81
79%
118%
30
35%
65
65%
97
95%
94%
96%
116
115%

Mar. 1.
30}*'
56%
122%
22%
55%
137
102%
72%

Mar. 8.
30%
36%
45%
21%
102%
54%
139
102
71%

81
118%
35%
65
95%
97%
115%

80%
117%
34*
62%
94%
94%
114%

Mar. 15. Mar. 22. Mar. 29
33%
35%
34
36
46%
46%
47%
23%
105%
105%
103%
58%
58%
59%
138%
101%
102%
101*
75%
7 %
74%
108
108%
79%
78%
82%
121%
119
118%
35%
35%
35%
64%
69%
63%
97*
96
97%
96%
96%
96%
116
115%

The daily closing prices of the principal government securities are shown in
the following statement:
PRICES OP GOVERNMENT SECURITIES AT NEW YORK, MARCH. 1807.

Monday
2 5 ....
Tuesday
2G___
Wednesday 27.. ..
2S...
Friday
29.......
Saturday 30.......
31 ..
Sunday
First........
Lowest__
Highest...
Latest......

,-6 ’ s, 1881.—%
Coup. Reg.
110%
....... 110%

.......

110
109% 110
....

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

109%
109%
109%
109% 109%
109%

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

109%
109

.......

109% 109%
109

.......

108*

....

109%

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

108*
108%
108%
109%

110% 110%
103#
110%
109% 109%

✓ ~6’s, (5-20 yre.)Coupon-^ 5’ s,10-40yrs. 7-3C®
18671862. 1864. 1865. new. Coup.
105%
98
in
108% 106%
110%
106%
110% 108
110%
109% 107%
109*
109%
109
107%

*©
00
•rt

Day o f month.
Friday
1 ____
Saturday
2.......
3. ..
4 .......
Monday
5.......
Tuesday
W ednesday 6 ----7......
Thursday
8 ......
Friday
9 ......
Saturday
10......
Sunday
Monday
11......
Tuesday
12___
Wednesday 13......
Thursday 14___
15___
Friday
Saturday 16......
Sunday
17. ...
Monday
18___
1 9 ....
Tuesday
Wednesday 20 —
Thursday 21....
Friday
22......
Saturday 2 3 ....

98

106%
108% 106%
107% 106%
106%
107* 106*
107* 106*

97%
98
97%

105%
105%
105%
105%
105%

107%
106%
109% 107%
!07% 107% 106%
109% 107% 107% 106%
107%
106*
109% 107% 107% 106%
....
i09* 107*
107%
107%
107% 108
109%
107%
109% 107* ii>7% 107%
109% 107% 108
107%
109% 107* 107% 107

91%
97*
97%

97%
97%
97%

106
106
106
106
106
106

109
107*
108% 107%
109% 107%
107%
119% 107%
109% 107%

107%
107%
10S
108%
108%

107*
107
107%
107%
lf'7%
107%

97%
97%
97*

106
105%
106

98
98

106
106

111
108%
111
109%

108%
107%
10S%
108%

106%
106%
107%
107%

98
97%
98
98

105%
105%
106
106

103
107%
108
107%

97*
97%

105*
105%
105*
105%
105*
105*

The quotations for three-years compound interest notes on each Thursday of
the month have been as shown in the following statement :
PRICES OP COMPOUND INTEREST NOTES AT NEW YORK, MARCH,

Issue Of
Jane, 1864..........
July, 1864..........
August, 1S64___
October, 1864 —
December, 1864,.
May, 1865...........
August, 1865......
September, 1865
October, 1865...




March 7.
117%@117%
117 @117%
116%@116%
115%@115%
114%@114%

112%@112%
111*01
110*0111

110%@110%

March 14.
117*0117%
117%@117%
116*©116%
115*0115%
114*0114%
U2%@112%
111* 0111 %
110%@U1
110%©110%

1867.

March 21.
117%©1I8
117%©117%
116%©117
115%©116
114%©115

March 28.
118 ©118%
117%©117%
117 ©117%
116 ©116%
115 @115%

111* 0 11 1 *
110%©111

111% © 111%

112%@112*

110%©110%

112%@112%

111 @ 111%

110%@1U

318

P U B L IC

D EBT

O F TH E

U N ITE D

[Apr\ll,

ST ATE S.

The first series of figures represents the buying and the last the selling prices
at first class brokers’ offices.
The course of United States’ bonds in Europe lias been steadily upward.
Although large amounts were sent thither in January and February, and have
since been in course of distribution, yet Five-twenties rose at London from 73f>
at the opening of the month, to 75£ at the close. Illinois Central and Erie
shares have respectively advanced at London 3£ per cent., following the fall in
the premium on gold.
The closing quotations for Consols and certain American Securities (spepified) at London, as received by the Atlantic cable, are given in the following
tabulation :
COUR8E OP CONSOLS AND AMERICAN SECURITIES AT LONDON—MARCH, 1867.

Date.
Friday...
Saturday.

Cons Am. securities.
for u. s. Ill.C. Erie
mon. 5-20s sh’s. shs.
91
91

....

Wednesday..
Thursday ...
Friday........
Saturday. ...
Sunday..'___

4 91
91
90%
no;,003,'
■MM
11 90%
00%
oo %
14 MM
15 91
16 91
17
18 91

Friday.

Cons 1Am. securities
for U.S. Ill.C. (Erie
mon.|5-20s sh’ s. jsh’ s.

Date.

73% 70% 36% Tuesday..........- ....... 19
Wednesday___ .......£0
73% 76
37
Thursday........ .......21
73% 76% 36if Friday.............
78% 77
36% Saturday........ .......23
74
77if 33% Sunday ............ .......24
Monday........... ...... 25
73% 77 if 36
Tuesday............ .......26
73# 77if 36
74% 77% 30% Wednesday___
Thursday........
74if 78 3*% Friday............... .......29
74 if 77if 40
Saturday...........
• m 77% 30% Sunday .............
74if 77% 30%
74 A 77% 30% Highest.............
Lowest.............
74% 78
40
Range..............
74% 70% 39%

91
91
01%
91
91

74%
74%
74%
74%
74%

78
73%
73%
7S%
73%

39%
40%
S9%
39
39

9i
91
91%
01%
91
91%

74%
74%
74%
75
75
75%

73%
78%
77%
78%
78%
79#

39
38%
38#
:*R%
39
39%

—

—

—

01%

75% 73% 40%
35%
90% 73% 76
% 1% 4% 3%

The imports and exports of coin and bullion at the port of New York for
each of the last three months and since January 1, have been as shown in the
following statement.
MOVEMENT OF COIN AND BULLION IN MARCH AND SINCE JANUARY 1 .

Receipts from California..................
Imports from foreign ports................

January.

Total receipts...........................
Exports to foreign ports.....................
Excess o f exports over im po.ts.......

February.
$1,740,109
136,491

March. Since Jan. 1.
$1,896,857
$o,109,861
145,867
409,077

$1,876,600
2,124,461

$2,042,724
1,891,141

$*,518,938
6,5C6,958

$151,583

$48,258

$4S,0i0

$247,861

The following shows the amount of receipts and exports in March and
since January 1, for the last seven years :
1867
1866
1865
1864
1863
1862
1861

r-Receipts from Cal.->, -Imp. from for’ n p 'ts- Exp’s to for. ports--,
Mar. Since Jan. 1. Mar. Since Jan. 1.
Mar. Since Jan. 1.
$1,896,857 $6,109,861 $145,867 $409,077 $1,891,141 $6,566,958
3,958,291
9,047,105
285,854
530,747
1,045,039
5.558,405
1,668,975
4,627,167
243,242
402,214
381,913
4,539,967
1,806,559 10,275, 05
1,121,338
3,301,608
104,437
334,377
1,697,176
4,986,681
123,616
439,493
6,585,442 15,175,080
1,846,752 r,297,080
88,327
313,992
2,471,233
8,906,426
301,802
1,463,623
2,370,89 { 10,178,895 5,546,406 15,OS2,7o2

The lowest and highest quotations for United States 6’s (5*20 years) of 1862,
at Paris and Frankfort, in the weeks ending Thursday, have been as follows :
Parle.......
Frankfort.




Mar. 7.
82#@S2#
76#@ 77#

Mar. 14.
83 @84
77#@ 77#

Mar. 21.
84 @ 84#
'*7#@77X

Mar. 28.
S4#@84#
77#@ 78

1867J

C O M M E R C IA L C H R O N IC L E

AND

319

R E V IE W ,

The course of the gold premium has been steadily downward, the price hav­
ing fallen over six points within the month. This change is the more remark­
able considering that there has been a reduction of more than three millions in
the supply of specie in the banks. The anticipation of the large disbursement
upon May coupons appears to have been the chief cause of the downward ten­
dency. The receipts from California amount to $1,896,857, and the foreign ex­
ports to $1,837,824. Since Jan. 1st, the California supply and the foreign im­
ports have been balanced by the shipments to foreign ports within about $2,000.
It will be seen from a statement below that the amount of gold derived from
unreported sources, has again been about three times the amount derived from
California :
January. February.
March. Since Jan.l.
8pecie in banks at or near commencement..........$13,185,922$16,332,984 $11,579,381 $13,185,222
Receipts o f treasure from California.................
2,472,895
1,740,109 1,896,857 6,109,861
Imports of coin and bullion.................................
126,719
136,491
145,S67
409,077
Coin paid by U. S. Treasury for interest............
7,486,945
521,832 2,830,526 10,838,303
Total reported supply................................. $23,270,781 $18,731,416 $16,452,631 $30,542,463

From which deduct amounts withdrawn from market, viz. :
Export o f coin and bullion............... ................. $2,651,356
Paid into U. S. Treasury forcustoms..........
9,520,385

$2,124,461 $1,891,141
11,452,204 12,198,039

Total witbd’n from market..................... $12,071,741 $13,576,665 $14,089,180

$6,566,958
33,170,628
$39,737,586

Excess o f reported supply over withdrawals... $11,199,040
Excess of withdrawals over reported supply....................
Specie in banks at or near close......................... 16,332,984

$5,154,751 $2,362,451

Derived from nnrep’ ted sources™ ,..................

$6,424,630 $6,159,158 $17,717,732

$5,133,944

11,579^381

8,522,609

$

9,195*123
8,£22,609

The sources of this large extra supply, by which the market has been sus­
tained, are numerous and divergent. From the sales of gold effected by the
Treasury probably the larger portion is derived ; but in addition to the receipts
from this source, there is a considerable amount brought in hand by persons re­
turning from California, and by immigrants from foreign countries, while at the
same time the overland shipments from the mines of Colorado, Montana and
Idaho are rapidly increasing, and becoming a very important item in our supply
of the precious metals. In the above table it will be seen that from these sources
and from private hoards the market has received over 17 millions of gold since
the first of January.
The following table gives the fluctuations of gold coin at New York daily for
the past month ;

Friday........................ 1 140% 13854 140% 13954 Thursday............. ...21
Saturday....................2 139% 13854 139% 13854 Friday.................. ... 22
Saturday............... ...23
Monday......................4 139 13854 139 13854
...24
Tuesday...................... 5 13S54 136J4 13854 13654 Monday...............
Wednesday..... ...........6 13614 13554 13654 13554 Tuesday............... ...26
Thursday....................7 13454 13354 13454 13154 Wednesday.......... ...27
Friday........................ 8 134J4 13354 13454 13454 Thursday............. ...28
Saturday........ .......... 9 134M 13454 135 13454 Friday................. ...29
Saturday..............
. . . ‘61
Monday....................... 11 135 134% 135?4 13454
Tuesday......................12 13454 133% 134)4 13354
Wednesday............ . 13 13354 133% 13454 13454 March..1867.........
Thursday....................14 13454 134% 13454 13454
“
1866..........
Friday.........................15 13454 134 13454 13454
“
1865..........
Saturday......................16 13454 134% 13454 13454
“
1864.........
“
1863 ........
Monday......................18 134% 134 13454 13454
“
1862..........
13354 13454 13454
Wednesday................ 20 134% 13454 13454 13454 S’ce Jan. 1,1867 .




Closing.

Date.

High’ st

E

Lowest.

ft

1867.
Openi’g

no

Closing.

Lowest

Date.

Openi’g

COURSE OF GOLD AT NEW T O R E , MARCH,

13454 13454 13454 13454
13454 134)4 13454 13454
13454 13454 134>4 13454
13454 i3354
13354 133%
13454 13454
134)4 134)4
13454 134 54
134 13454

134%
134 54
134)4
13154
134)4
134;4

140%
136%
201
15954
171%
102%

14054 134
136% H27%
201 15154
169% 16454
17154 14954
10254 10154

13354
12454
14854
159
139
10154

133J4
13454
13454
13454
13454
134

13254 13254 140% 134

3J0

JO U R N A L

O F B A N K IN G , C U R R E N C Y , A N D

F IN A N C E .

[April,

Foreign Exchange has been more active, and with a diminished supply o jbills the tendency of rates has been upward. The range for 60 days bankers’
sterling has been from 108@109i, the latter rate having been reached near the
middle of the month, since wh’ ch the quotations has fluctuated between 108J
and 1 09i. The steadiness of the market for the past two or three weeks has
been, in a great measure, due to the near exhaustion of the cotton crop, on which
the supply of bills has for some time past materially depended. The following
are the daily quotations for bills on the principal commercial centres :
COURSE OP FOREIGN EXCHANGE

(60

D A T S)— MARCH,

1867.

London,
Paris. Amsterdam. Bremen. Hamburg. Berlin,
cents for
centimes
cents for
cents for
cents for
cents for
Bays.
54 pence.
for dollar.
florin.
rix daler. M. banco.
thaler.
1 ......................... 108%@109 517%©516%
41%@41% 79 @79% 36%@36% 72 @ 72*
2 ........................ 108%@10S% 51S%@516%
41%@41% 78%@79% 36%@36% 72 @72%
3 .......................................................................................................................................................
4 ......................... 108%@108% 518%@516%
40%@41% 78%@7S% 36 @36% 71%@72
5 ........................ 108 @108% 520 @518%
40%@il% 78%@78% 36 @38% 71%©72
6 ........................ 108 @108% 525 @518%
40%©41% 78 @78% 35%@36% 71%@72
7 ........................ 108%@108% 51S%@517%
41%@41% 78%@79
36%@36% 72 @72%
8 ........................ 108%@109 517%@516%
41%@41% 78%@79
36%@36% 72 @72%
9 ........................ 103%@10S% 520 @517%
41 @41% 78%@78% 3o%@36% 71%@72%
10

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

11 ......................... 108%@10S% 518%@517%
41%@41% 78%@79
36 @36% 71%@72%
12 ........................ 108%@108% 518%@517%
41%@41 % 78%@79
86%@36% 72 @72%
13 ........................ 103%@109 520 @516%
40%@41% 78%@79
36 @36% 72 @72%
14 ........................ 109 @109% 516%@515
41 @41% 78%@79
86%@36% 72 @72%
15 ........................ 109 @109% 616%@515
41%@41% 78%@79
36%@36% 72 @72%
16 ........................ 108%@109% 520 @515
40%@41% 78%@79
35%@36% 71%©72
17 .......................................................................................................................................................
18 ........................ 108%@108% 517%@516%
41%@41% 79 @79% 36%©36% 72%@72%
19 ........................ 108%@109' 517%@515
41 @41% 78%@79
36 @36% 71%@72
20 ........................ 108%@109 518%@515
40%@41% 78%@78% 35%@36% 71%@72%
21 ........................ 108%@109 517%@516%
41%@41% 79 @79% 36%@36% 72%©72%
22 ........................ 108%@109 517)4 @516%
41%@41% 79 @79% 38%@36% 72% 72%'
23 ........................ 108%@10S% 517%@516%
41%@41% 79 @79% 36%@36% 72,%@72%
24 ......................................................................................................................................................
25 .......................... 108%@109 517%@516%
41%@41% 79 @79% 36%©36% 72%@72%
26 ........................ 10S%@109% 517%@516%
41%@41% 73%@79
36%@S6% 72 @72%
27 ........................ 10S%@109% 518%©516%
40%@41% 78%@79
36 ©36% 71%@72
23............................ 108%@109% 518%@516%
40%@41% 79 @79% 36%@36% 72 @72%
29 ........................ 109 @109% 518%@516%
41%@41% 79 @19% 36%@36% 72 @72%
30 ........................ 109 @109% 518%@516%
41%@41% 79 @79% 36%@36% 72 @72%
31 .......................................................................................................................................................
Mar........................... 108 @109% 525 @515
Feb............................108%@109
522%@515
Jan............................108%@109% 520 @513%

40%@41%
40%@41%
41%@41%

78 @79% 35%@36% 71%©72%
78%@79% 38 @36% 71%@72%
78%@79% 36%@36% 72 @72%

Jan. & Mar...............10S%@109% 525 @513% 40 @41% 78 @79% 3o%@36% 71%@72%

JOURNAL OF BANKING, CURRENCY, AND FINANCE

Quarterly Report o f the National Banks.—Return o f the New York, Philadelphia and Boston
Banks.

The quarterly reports of the National Banks made up to April 1, are now
being rapidly published, by Mr. Hurlburd the comptroller, under the new form
which was issued by him the past month. We are greatly pleased that he
should have given them to the public at so early a date, as they lose much of
their value if long delayed. The difficulties incident to the gathering of com.




1867]

JO U R N A L O F

B A N K IN G , C U R R E N C Y , A N D F IN A N C E .

321

plicated official statistics from numerous and distant sources are well known,
and therefore the rapidity with which they have on this occasion been analyzed
and a summary prepared and published is the more notable. Below we give the
returns for New York, Boston and Philadelphia.
RESOURCES.

>-------------New York------------- ,,-------------- April 1-------------- *
Jan. 1.
April 1.
Philadelphia.
Boston.
Loans & discounts......................... $157,967,294 27 $152,S63,769 78 $32,215,009 01 $56,811,075 24
Real estate, furniture & fixtures..
5,626,886 76
5,719,027 50 1,185,073 57
1,420,072 61
435,596 12
31,165 78
Expense account....
...............
431,050 92
1,674,995 66
55,145 35
Premiums paid.............................
637,324 70
395,847 33
941,100 96
4,516,321 66
Cash items (including rev. stamps). 78,758,030 91 69,414,064 77 1,032,735 19
Due from N’l B’ks..........................
8,458,871 83
9.583.978 64
7,947,324 06 4,805.130 79
248,0S4 03
“ other banks.........................
460,494 75
4.136.978 64
2,689,883 83
TT. S. bonds to secure circulation. 42,487,S00 00 42,467,800 00 I V 18,000 00 29,044,350 00
1,925,000 00
U. S. Bonds to secure deposits...
5,170,300 00
4,800,900 00 2,047,600 00
U. S. Bonds & securities on hands 15,781,250 00 15,123,950 00 3,288,580 00
3,947,550 CO
1,084,150 00
Other stocks, bonds and mortages..
4,534,610 36
6,260,158 78 1,057,420 24
Bills o f Nat’l B’ks...........................
422,935 00
1,355,611 00
2,228,868 00
1,439,115 00
6.35,244 00
30,364 00
Billsof other banks.........................
69,699 00
69,488 00
Specie. ...........................................
454,986 52
10.547.117 30
792,037 48
5,718,722 60
Compound Interest n o te s.............
22,785,940 00 25,939,480 00 8,348,470 00 11,531,180 00
6,OSS,087 49
Other lawful money......................... 41.402.117 59 34,700,372 21 8,410,253 34
Aggregate

$402,149,036 42 $377,790,364 23 $78,045,537 82 $127,604,785 51
LIABILITIES.

Cap. stock paid in ......................... $75,009,700 00$75,009,700 00 $16,017,150 00 $43,550,000 00
6,849,511 10
Surplus lund .................................
17,573,506 57
17,301,440 86 5,175,784 01
National b’k notes outstanding...
34,257,816 00
34,972,371 00 11,006,790 00 25,309,509 00
State b’k n. outs’ g .........................
311,258 00
406,037 00
379,353 00
135,085 00
Individual dep’sits......................... 201,962,194 16 175,493,039 91 35,516,987 95 39,011,725 13
1,465,594 19
U. States deposits..........................
2,319,414 34
2,789,205 55 1,887,404 12
Deposits of U. S. Disb’g Officers..
...
4,884 47
996 70
Due to Nat. banks................ ........
52, 66,889 22 51,841,582 80 5,622.989 44 10,108,134 06
1,050,696 80
Due to other banks and bankers ..
13,278,398 39
12,508,466 93
974,533 83
948,356 23
Profits..............................................
4,870,196 27
7,494,207 48 1,768,818 47
Aggregate .

$402,149,036 42 $377,790,364 23 $78,045,537 82 $127,604,7S5 51

The money market the last of the month has been much disturbed by the
preparations of the National Banks for their quarterly return. From the New
York city bank statement it appears that at the close of the month the deposits
had been drawn down since the week ending March 9, nearly twelve millions
and that the loans have been reduced during the same period nearly eight mil­
lions. This large reduction in deposits is due chiefly to the country banks hav.
ing withdrawn their balances temporarily in order to make a favorable exhibit.
Below we give the weekly bank returns of the three cities.
NEW YO RK CITY RANK RETURNS.

Date.
Loans.
Specie.
Circulation.
January 5. .. $257,852,460 12,794,892
32,762,779
January 12___
258.935,4S8 34,613,477
32,825,103
January 19___
255,032,223 15,365,207
32,854,928
January 26 ...
251,674,801 16.014.007
32,957,198
February 2 ...
*51.264,355 16,332,93
32,995,347
February 9___
250,268,825 16,157,257
32,777,' 00
Febru’ ryl6__
253,131,328 14,79-%626
82,956,309
Febru’ ry23__
257,823,994 13,513.456
33,006,141
26 ,166,436 31,579,381
Marc'i
2___
33,294,433
March 9 ..
262,1 1,458 10,868,132
33,409,811
March 16....
263 0 2,97 2 9,968,722
3%4wo.083
March 23...
259,400,315 9,143,913
33,519,401
March 30 ..
*55,-82,364 8,522,6 9
33,609,195




Deposits. Legal Tend’s. Ag. clear’gs
202,533,564
65,026.321
486,9S7,787
202,517,608
63,246,370
605,132,006
63,235,386
201,500,115
520,040,02*
197,952 0T6
63.420,559
568.822,8(4
65,944.541
200,511,596
512,407,25*
198,241,835
67,628,992
5u8,825,532
396,072,292
64.642,940
455,833,829
198,420,347
63,153,895
4-13,574,086
198.018,914
65,014195
465,534,5 9
200,2v3,527
64,523,440
544,173,256
197,958,^04
62.813059
496,558, 19
19.%375,615
60,904,958
472,502,318
188,480,250
62,459,811
459,850,602

322

P IT T S B U R G , F O R T W A Y N E

AND

C H IC A G O

R A IL R O A D ,

[April,

PHILADELPHIA BANK RETURNS.

Date.
January 5.
January 12.
January 19.
January 26.
February 2.
February 9.
Febru’ryl6.
Febru’ry23.,
March 2..
March 9..
Earch 16 .
March 23..
March 30..

Legal Tenders.
$20,209 064
20,006,255
19,448,099
19,363,374
19,269,128
19,659,250
18,892,747
17,837.598
18,150,657
17,521,705
16,955,6 3
16,071,7S0
15,856,948

Loans.
52,3i2,317
52,528,491
53,458.307
52,168,473
55.551.130
52,384,329
52.573.130
52,394,721
51,979,173
51,851,463
50,5 8,294
50,572,490
50,880,306

Specie. Circulation. Deposits.
10,388,820
41,308,327
903,663
903.320
10,380,577
41,023,421
10,381,595
30,048,645
877,548
10,384,683
39,001,779
880,582
871,564
10,430,898
39,592,712
873,614
10,449,982
39,811,595
867,110
10,522,972
40,050,717
10,566,434
38,646,013
841,223
816,843
10,5-1,600
39,367,388
832, €55
10,572,068
37,314,672
858,022
10,580,911
3-,826,001
807,4 3
10,611,987
34,5.-1,545
10,631,532
34,150,285
602,148

BOSTON BANK RETURNS.

(Capital Jan. 1, 1866, $41,900,000.)
Loans.
January 7............... $97,009,342
January 14............... 98.461,778
January 21 ............. 95,298,982
January 28............... 97,891,329
February 4 ............... 97,742,461
Febru’r y ll............... 97,264,162
Febru’ryl8 ............... 96,949,473
February25 ............... 95.33 ,900
Mar h 4 ............... 95,050,727
March 11............... 12,078,975
March 18............... 93,156,4*6
March !r5............... 92,661,060

Specie.
1,183,451
1,334.300
1,078,160
1,058,329
956,569
873,396
929,940
779,402
958,887
695,447
568,e94
516,184

Legal
Tenders.
17,033,3S7
16,829,495
16,596,299
16,816,481
16,394,604
1 ,103,479
15,398,338
15,741,046
15,9-8,103
15,719,479
16.270,979
16,557,905

,------CirculationNational.
State.
24,580,367
812.664
24,997,446
311,749
24.275,162
301,911
24,716,597
302,298
24,691,075
306,014
24,686,663
305,603
24,765,420
305,603
24,953,605 303,228
24.675,767 301,430
24,346,631
*89,5 8
24,809,523 299,133
24,738,722 299,091

Deposits.
40,824,618
40,246,216
38,679,604
39,219,241
39,708,053
39,474,359
38,900,500
37,898,963
38,316,573
36,712,052
36,751,733
36,751,725

PITTSBURG, FORT WAYNE AND CHICAGO RAILROAD,

The operating accounts of this Company for the years ending December 31,
1865 and 1866, present the following results :
Passenger Earnings----Freight
“
___
U. S. Mail
“
Express
“
---Clev. &>P’b’g HR. lease.
Rents..............................
Miscellaneous.................
Gross earnings

1865.
$3,391,221 46
4,739,067 88
93,900 00
149,658 02
85,000 00
4,861 12
25,354 08

1866.
Increase. Decrease
$2,441,895 70 $ ............ $949,325 76
4,707,582 12
31,485 76
..................................
93,900 00
100,298 43
49,359 59
85,000 00
..................................
2,869 00
1,992 12
35,6.2 31 10,318 23

$8,489,062 56

$7,467,217 56

$1,021,845 00

From which deduct cost of maintenance and operating, viz.:
Maintenance o f way.......
“
of cars ____
“
ofmachin’y.
Transportation...............
General expen. and taxes.
Cost o f operating.

$1,344,674 25 $1,270,533 01 $ ............
531,103 94
552,910 £0 21,806 56
1,520,948 54
1,568,196 04 47,247 50
1,220,978 76 1,230,472 24 59,493 48
587,810 00
475,574 55
............
$5,295,515 58

$5,147,686 54

Balance..................... .............................. $3,283,546 88
Add, net income o f N. C. and B. V. HR..
34,331 43

$2,319,531 02
55,460 66

Total net earnings.

*3,317,878 41

$74,141 24
.............
.............
.............
111,235 45
$57,829 04

$ ..........
21,129 13

$2,874,991 58

$64,015 96
.............
$442,886 83

From which were paid the following amounts :
Interest on bonds............
Dividend 10 p. c. and tax.
Sinking fund...................
Clev.& Pittsb’gRR. lease




$901,485 00
9 1,282 50
104,100 00
342,49 93

$870,861
1,035,315
118,678
209,048

93
$ ...
79 134,033 29
67 14,578 67
06
$ ...

$3 ,123 07
133,348 87

$2,249,361 43

$2,233,404 45

$

$15,959 98

$1,068,513 98

$641,587 13

$

$426,926 85

1867]

PIT T SB U R G , P O R T W A Y N E

AND

C H IC A G O

R A IL R O A D .

323

While the earnings of the road for transporting freight in the years 1865 and
1866, were very neariy equal, the quantity of freight transported, and the con­
ditions of the movement varied materially in these years as will be seen by the
following comparison :
T onnage...........................................
Mileage, p er to n ............................
Average haul, per to n ..................
Mileage o f loaded c a rs .................
“
o f em pty cars...................

1865.
1866.
Increase.
1,025,778
88*,615
193,163
193,789,901 233,274,794 39,484,893
233
227
24,294,877 28,543,369 4,268,492
8,695,113
8,286,126

A verage load (tons) per car, w est.
“
“
“
“
east,
“
“
“
“
total.

7:111
8:502
7:980

7:244
8:802
8:173

Decrease.
6
408,987

0:133
0:300
0:193

This shows an increase of the freight tonnage of the road of 23.2 per cent.
The foreign tonnage fell off 19,564 tons and the local tonnage increased 212,727
to s. This change explains the reason of the shortened average haul per ton in
1866 as compared with the haul in the previous year.
The revenue from the transportation of passengers fell off $949,325 76 from
the previous year. Of this diminished income more than one half or $480,000
was on account of military transportation. The large express business of 1865
was exceptional, and caused by the inability of the lines occupied by the Adams
Express Company to accommodate the large south-west business during the
closing period of the war— the overflow seeking the route via Crestline over
the road of this company from Pittsburg.
The rolling stock has been increased during 1866 by the construction at the
Fort Wayne shops of 150 box cars. The present equipment consists of 189
1 jcomotives, all in good order; 169 passenger, baggage and express cars, aDd
1,381 freight cars.
The track is in excellent order and fully equal to that of the best western
roads. During 1866 twenty-four per cent, of the main track has been relaid with
re-rolled iron ; and during the last three years three fourths of the main lino of 468
miles has been relaid with new, re-rolled or repaired rails, paid for as repairs out
of the current earnings. The side tracks have been increased by 6 9 miles, which
makes the total sidings now in use 105J miles. In addition there are 22 miles
of second track from Pittsburg to Rochester, and 7 miles from Chicago to the
crossing of the Rock Island Railroad. The construction and equipment has
been continued through the year 1866 to a larger exten than was expected The
expenditures on these accounts amount to $1,116,975 70, viz: in the Eastern
Division $580,926 80, and in the Western Division, $536,048 90. These
amounts include a small sum properly chargeable to 1865.
The financial condition of the company as exhibited on the balance sheets of
December 31, 1865 and 1866, is shown comparatively in the following state­
ment :
1865.
C apital S to c k ..........................................................$9,312,442
F und ed d e b t......................................................... 12,573,509
D ue to o th er c o m p a n ies...................................
184,871
M iscellaneous lia b ilitie s...................................
448,041
C ur’n te x p ’sesin D e c.& p rio r............................
849,376
D ue J . F , L anier, T ru ste e ................................
115,331
Balance to credit of in co m e.............................. 3,062,180
Total,




1866
Increase.
00 $9,940,987 95 $628,545 95
00 12,568,500 00
85
40,822 62
24
364,295 73
12
568,987 14
.............
13
88,238 79
75 3,355,707 9S 293,577 23

Decrease.
$ .............
7,000 00
144.049 83
83,745 51
280,3S8 98
27,092 34
..............

$26,545,693 09 $26,927,539 61 381,846 52 $ .............

324

S IL V E R

O N L A K E S U P E R IO R .

[April,

Against which are charged as follows, viz:
Coat o f Railway, & c...........................................$23,183,381 33 $24,253,746 81 $1,070,365 48 $ ..............
Supplies on h a n d .................................................
969,053 93
631,918 82
337,135 11
Due from o th er com panies................................
417,948 84
386,954 73
............. 30 994 11
M iscellaneous a s s e ts ..........................................
755,350 14
708,333 63
47,016 51
208,200 00
275,910 03
32,284,97 .............
S inking F u n d s .....................................................
Cash in h in d ........................................................ 1,011,758 85
670,675 59
45S,916 74
T o ta l............................................................... $26,545,693 09 $26,927,539 61

$381,846 52 $

The shares of this company fluctuated in the New York market in 1866 as is
shown in the following exhibit:
J a n .........................91%@104% I M ay............................ 92%@100% Sept
F e b ........................ 91%@ 95% | J u n e ......................... 95 @100
O c t..
M arch.................. 88%@ 93 | J u ly .......................... 95%@103
N ot.
A p ril...................... 88 @100% | A u g u st.....................102%@106% Dec.

.103 @108%
,106 @111%

,101%@111%
■104%@107%

SILVER ON LIKE SUPERIOR.
{.From the Chicago R epublican.]

Elsewhere, native silver occurs only in connection with gold or with the true
argentiferous ores ; but hitherto not a trace of silver ore has ever been discover,
ed in the copper district of Lake Superior. The silver occurs in small masses,
weighing as much as two or three pounds, and forming specimens of great beauty.
It has been found in almost all the veins of Keweenaw Point, in the lodes of
Portage, particularly the Isle Royal lode, and in the mines of Ontonagon county.
Although the two metals occur in the most intimate association, yet they are
hardly ever found alloyed with each other. Frequently two masses of silver and
copper form one lump in such a way that the junction of their edges is absolutely
perfect; yet the two are chemically entirely distinct and unalloyed. Sometimes
beautiful specimens of native silver are found in stopping, or in opening the mine,
but the greater part is found by picking over the lumps of copper, which are too
heavy to be washed from under the stamp heads by the stream of water that is
continually pouring into the mortars, or as the miner calls them, “ covers,” in
which the stamp rock is pulverized. The “ covers” are cleaned out at intervals,
when a number of those lumps, varying in weight from one dwt. to two or three
oz. are taken out, and these are picked over by boys who take out the silver. In
1865 the amount of silver found in this way at the Cliff mine sold for $5,270 17
There is no doubt that a considerable portion of the silver is purloined by the mint rs,
besid es that which is so fine as to be carried away to the washers, whence it goes
to th e smelting works, and with the fine copper there, is melted up and becomes
alloyed with the copper. The quantity thus escaping is not, however, sufficient
to make it worth while to erect furnaces for separating it from the copper, which
is undoubtedly improved by the admixture. It is worth while to notice that the
nalive copper and silver of Lake Superior, side by side, yet perfectly distinct
from each other, is one of the very strongest objections to the reception of the
Plutonic theory, which accounts for the presence of the copper in the veins and
trappean beds of Lake Superior by assuming that it has been injected in a mol­
ten state from below.




1867]

R A IL W A Y S

IN

FRANCE

FOR

1865

AND

RAILWAYS IN FRANCE FOR 1865 AND

1866.

325

1866.

A return relative to the working of railways in France in 1866, compared
with 1865, has just been issued by the Ministry of Public Works, and the fol­
lowing are the principal features in i t :—
OLD

NETWORK.

Length worked Dec. 31, .—
Receipts.---------- ,
1866.
1856.
1S66.
Names o f Railways.
1865.
kilometres, kilometres. Irancs.
francs.
Northern.....................................
76,201,334
Eastern..... ................................
53,364,413
Western......................................
65.050.018
..................... . .. 1.762
1.76-2
81.818.122
75,886,454
2,007
156,532,082
Lyons and Mediterranean..........
144.523.018
Southern.................................... ..........................
797
797
34,828,784
3-',571,050
17
Ceinture (round Paris)...............
2,916,508
2,S10,8S1
51
825,113
32
Besseges to Alais.......................
1,804,407
1,849,821
19
601,940
15
191,175
La Croix-R. to Sathonay............
150,602
7
1144,560
Total........................................ .......................

7,581

7,650

472,183,829

443,707,522

131
1,539
957
1,305
1,207
633
116

4,212,488
41,841,633
6,335,500
21,603,384
37,398,989
7,937,030
1,835,148

2,814,083
38,401,238
13,333,085
18,418,572
35,963,291
5,667,880
1,820,547

5,888

131,164,17 i

116,418,696

Old network................................
New network............................

7,650
5,8§8

472,183,829
131,161,172

443,707,522
116,418,696

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

13,538

603,348,001

560,126,218

NEW NETWORK.

Northern.....................................
Eastern........................................
Western......................................
Orleans........................................
Lyons and Mediterranean..........
Southern.....................................
Victor Emmanuel......................
Total........................................
RECAPITULATION.

It will be seen that the old network in 1868 was less by 66 kilometres than in
1865. This was owing to the Graissessac and Carmaux lines having been
transferred to the new network of the Southern Company. The term “ old
network ” means the old lines; “ new network,” the prolongations and em­
branchments there of on which the Government guarantees interest. The 14,382
kilometres worked on Dec. 31, 1866, were in English measure 8,988 miles, and
the 13,538 of 1865, 8,461 miles.
The receipts of 1866 were £24,133,920, and
of 1865, £22,405,048.
Taking the average receipts per kilometre, of the old network, it appears
that those of the Northern Railway were 1.80 per cent more than in 1865; of
the Eastern, 5.96 more ; Western, 6.32 : Orleans, 7.82; Lyons-Mediterranean,
8.31; Southern, 6.93 ; Ceinture, 16.15. The other lines were of no importance.
In the new network, in which, it must be remembered, the average length work­
ed during the year was not the length worked at the end of the year, the North­
ern railways produced 2.52 more ; the Eastern 6.50 ; the Western, 8.58 ; the
Orleans, 1.70 ; the Victor Emanuel 5.35 , but in the Lyons-Mediterranean, there
was a decline of 6.33 and in the Southern of 0.55. Taking the old lines alto­
gether, the receipts of 1866 were 7.18 per cent, per kilometre more than in
1865, and the new network 0.50 less.




326

N A T IO N A L B A N K S

AND

[April,

C U R R E N C Y C O N T R A C T IO N ,

COMMERCE OF BOSTON.
W e
an

t a k e fr o m t h e B o s to n

D a ily A d v ertiser t h e f o llo w in g s t a t e m e n t , c o m p ile d f r o m

officia l so u rc e , o f th e v a lu e o f im p o r t s aDd e x p o r t s a t t h e p o r t o f B o s to n fo r 1 8 6 6 .

a s c o m p a r e d w it h th e t w o p r e v io u s y e a r s .
IMPORTS.
T h e t o t a l v a lu e o f im p o r t s for th r e e y e a r s h a s b e e n a s fo llo w s :

1805.
Jo n .....................$2,328,863
F e b ........................4,059,759
M arch....................4,407,919
A p ril......................4,793,930
M ay........................4,991.208
J u n e ......................3,998,297
J u ly ........o ...........3,834,989

1865.
$1,192,653
1,412,471
1,490,SOS
1,850,635
2,099,231
2,212,431
2,487,203

1864.
$1,711,713
1,867,001
3,156,284
4,163,761
3,622,483
3,216,160
2,752,542

1865.
A u g u st...................4,551,710
S e p fe n u .................4,644,844
O ctober.................. 3,792,388
N o v e m ...................3,357,692
D e e e m ................... 3,263,342

1865.
3,192,982
3,557,911
2,635,826
4,441,903
2,865,498

1864.
3,188,941
2,468,272
1,980,393
2,378,618
1,108,464

$47,923,940129,439,617$31,615,096

EXPORTS.
T h e to ta l v a lu e o f e x p o r ts fo r 1 8 6 6
3 2 8 ; a n d for 1 8 6 4 , $ 2 0 ,4 1 7 ,* 7 1 0 .
203.
at

a m o u n ts t o

$ 2 1 , 8 0 5 ,5 3 1 ; fo r

T h e im p o r t s a r e g iv e n a t th e ir fo reig n c o s t m g o l d .

th e ir c u r r e n c y v a lu e h e r e .

a o d th e e x p o r t s o f sp e c ie t o

1 8 6 5 , $ 1 8 ,5 3 0 ,-

T h e e x p o r t s fo r 1 8 6 6 , s h o w an in c r e a se o f $ 4 , 7 7 5 , The

T h e im p o r ts o f s p e c ie f o r 1 8 6 6

th e sa m e

t im e

to

$ 3 ,7 8 9 ,7 9 9 .

e x p o rts are reckoned
am ou n t to $ 1 ,2 9 3 ,9 4 3

The

m o n t h ly

v a lu e

of

e x p o r t s w e r e a s f o llo w s :

J a n ..........
F e b .........
M a r ........
A pr.........
M a y ........
J u n e ........
J u ly ........

I860.
1864.
1865.
1866.
1865.
1864.
. .. $1,428,533 $1,991,971 $1,453,383 A u g .. .. . . .
1,801,791 1,144,747 2,479,609
..
1,281,268 1,567,637 1,026,232 S ep ........ . . .
2,025,890 1,381,362 1,915,282
2,604,649 1,293,031 Oct.........
1,209.613 1,965,059
1,049,658 1,518,799 Nov. . . . . . .
1,564,686 1,511,589 1,913,845
..
3,724,SOS 1,738,601 1,561,481 D ec........ . . .
1,045,089 1,231,414 1,829,086
—
___ _
...
2,371,525 1,293,151 1,486,966
805,936 1.974,937
..
1,418, S57
$21,305,531 $16,530,328 $20,417,710
W ITHDRAW N FROM WAREHOUSE.

The

v a lu e

o f m e r c h a n d ise

w ith d r a w n fr o m

w a s $ 1 6 , 4 6 3 ,4 2 0 , a n d th e a m o u n t

e n te r e d for

w areh ou se

fo r c o n s u m p tio n

c o n s u m p tio n

w as

in 1 8 6 6

$ 2 2 , 4 1 4 , 1 0 0 , w h ic h

s h o w s t h e v a lu e o f m e r c h a n d ise th r o w n u p o n th e m a r k e t , e x c lu s iv e o f fr e e g o o d s , to
h a v e b e e n $ 3 8 , 8 7 7 ,5 2 9 o r a n

in cre a se

o f $ 1 1 ,6 9 6 ,0 5 9

o v e r t th a t

of

1865.

The

f o l­

lo w in g g iv e s a d e ta ile d s t a t e m e n t o f th e v a lu e o f m e r c h a n d is e w ith d r a w n fr o m w a r e ­
h o u s e for c o n s n m p tio n .

1S8S.
1865.
1864.
1866.
1865.
1864.
$972,865 $1,157,307 $625,182 A ug................
1,562,448
1,500,156 887,946
910,486
700,506 f41,347 S e p t...............
1,487,552
1,363,347 826,165
905,191
874,920 890,766 O c t.................
1,401,577
877,722 939,419
1,546,430
1,083,382 1,473,130 N ov................
1,379,133
718,441 1,012,230
1,503,963
1,402,403 157,454 Dec.................
977,932
614,591 1,173,113
1,575,080
1,102,065 235,317
2,180,773
1,095,904 659,001
$16,463,420 $12,490,837 $9,421,070

J a n .................
F e b ................
M ar.................
A p r il.............
M ay................
J u n e ...............
J u ly ................

NATIONAL BANKS AND CURRENCY CONTRACTION.
T h e fo llo w in g le t t e r h a s b e e n e x t e n s iv e ly p u t in c ir c u la tio n .

I t is an in d ic a tio n o f

th e d e te r m in e d e ffo r ts th a t a r e b e in g p u t fo r th fo r a fu r th e r in flatio n o f t h e c u r r e n c y :

O ffice of the M erchants’ U nion L aw C o., )
A merican E xchange B ank B uilding ,
>
N o . 1 2 8 B roadway , N ew Y ork , D e c . 2 1 , 1 8 6 6 . )
D ear S ir —
p a n y h a v in g

S everal

o f th e p a r tie s c o n n e c te d w iih t h e M e r c h a n ts U n io n L a w C o m ­

b e e n r e ta in e d b y s o m e o f t h e n a tio n a l b a n k s a n d o th e r s in te r e s te d , to

o p p o se m easu res

p e n d in g in C o n g r e s s for th e fu r th e r c u r ta ilm e n t o f th e c u r r e n c y , for

c o m p e llin g a ll su c h b a n k s t o r e d e e m

th e ir issu e s in N e w Y o r k , a n d for p r o h ib it in g

t h e m fr o m r e c e iv in g or p a y in g in te r e s t on b a n k b a la n c e s .

I n v i e w o f th e im p o r ta n c e

o f t h e q u e s tio n s in v o lv e d , c o n c e r t o f a c tio n h a s b e e n d e te r m in e d u p o n ; e m in e n t co u n ­




186V]

32 7

TH E B O O K T R A D E .

s e l h a v e b e e n r e ta in e d a t W a s h i n g t o n a n d e ls e w h e r e

to p re p a re and p re sen t a r g u ­

m e n ts a g a in s t e a c h o f th e s e m e a s u r e s , an d in fa v o r o f an e n la r g e m e n t
c o n tr a c tio n o f t h e v o lu m e o f th e c u r r e n c y ;
as w e r e d e e m e d p r o p e r t o in fo r m

ra th e r

th a n

a n d su c h o th e r m e a s u r e s h a v e b e e n ta k e n

C o n g r e s s o f t h e w is h e s a n d in te r e sts o f th e w h o le

c o m m u n ity u p o n t h e s e s u b je c ts .
C o p ie s o f th e b la n k p e titio n s w h ic h h a v e b e e n tr a n s m itte d

t h r o u g h o u t t h e U n io n

h a v e a ls o b e e n f o r w a r d e d t o y o u , a n d , a ft e r p r o c u r in g t h e sig n a tu r e s o f y o u r m o s t in flu ­
e n tia l c itiz e n s t h e r e to , y o u a r e r e s p e c t f u lly r e q u e s t e d to e n c lo se th e s a m e t o y o u r C o n ­
g r e s s io n a l r e p r e s e n t a t iv e s , o r t o s o m e o th e r m e m b e r , a t W a s h in g t o n , w ith w h o m

you

are a c q u a in te d .
M uch g oo d

m ay

a ls o

a r is e

fro m

c o m m u n ic a tin g y o u r w is h e s b y

le t t e r to y o u r

a c q u a in ta n c e s in C o n g r e s s .
A d d i t io n a l b la n k p e titio n s , in a n y n u m b e r d e sir e d , w ith p r in te d a r g u m e n t s , in p a m ­
p h le t fo r m , b y 6 o m e o f th e m o s t e m in e n t c o u n se l in t h e c o u n tr y f a v o r in g th e s e v i e w s ,
w ill b e fo r w a r d e d to y o u , fr e e o f c h a r g e , u p o n a p p lic a tio n t o th is office.
I f y o u a p p r o v e o f t h e efforts th u s m a d e a n d t o b e c o n tin u e d in th is d ir e c tio n , y o u
are r e s p e c t f u lly so lic ite d t o c o n tr ib u te to t h e e x p e n s e s o f th e s a m e , b y t r a n s m ittin g t o
th is o ffice s u c h r e ta in e r in t h e m a t t e r a s y o u s h a ll d e e m p r o p e r — s a y o n e -t e n t h o f on e
m i ll on e a c h d o lla r o f y o u r c a p it a l— b e in g in t h e p ro p o rtio n o f te n d o lla r s on e a c h o n e
h u n d r e d th o u sa n d d o lla r s o f s u c h

c a p it a l— it b e in g u n d e r s to o d , o f c o u r s e th a t y o u

in cu r n o a d d itio n a l o b lig a t io n w h a t e v e r b y so d o in g .

J ohn L ivingston,

Y o u r s , A c .,

THE

BOOK

S e creta ry , A c .

TRADE.

M. W . D odd, 506 Broadway, sends us the following excellent books :
1. The Draytons and the Davenanls. A Story of the Civil Wars. By the au­
thor of “ The Chronicles of the Sehonberg-Cotta Family,” &c.
Mrs. Charles has long ceased to need any commendation as an authoress.
Her writings, so well known and so heartily enjoyed in every household, require
only the simple statement of their publication to insure them an immense circle
of readers. The present volume is written in the charming style which charac­
terizes all the works of this authoress and contains many well drawn characters.
Job and Rachel Foster, the maiden aunts, cousin Placidia, sweet Lettice DaveDant, and saintly Lady Lucy, are all excellent in their way. If there is some­
what less vivacity in this book than in several of its predecessors, there is much
earnest thought, and an amount of historical information which greatly enhances
its true value and interest. A sequel to the Draytons and Davenants will be
published during the year, continuing the narrative through the times of the
Commonwealth and the Restoration, and containing many incidents connected
with the early Puritan history of our own land.
2. The Women of the Gospels; the Three Wakings and other Poems.
author of “ The Schonberg-Cotta Family.”

By the

Some of these poems have already appeared as scattered pieces in our papers
or periodicals, but many of them are now published in America for the first
time. Among the shorter poems are some of peculiar beauty and sweetness, and
although it is almost impossible to select the best out of so many that are good,
we can name “ The Child on the Judgment Seat,” “ The Pathways of the




328

April,

TH E B O O K T R A D E .

Holy Land,” and “ My Strength and My Heart Faileth,” as having especial
merit.
3. The Brewer's Family.

By Mrs. Ellis, author of “ Women of England.”

“ The Brewer’s Family,” as one might almost infer from the name, is a tem­
perance story, very pleasantly told, and very forcible in its teachings. Mrs.
Ellis’s writings are always pure in style, womanly in feeling, and of high moral
tone. The second story in the book, entitled “ Rainy Days, and How to Meet
Them,” although shorter than the first, is quite as interesting and instructive.
4. The Brownings: A Tale of the Great Rehellion.
of “ The Grahams,” &c.

By J. G. Fuller, author

This volume contains two stories. The first gives its name to the book ; the
second is entitled *•Lucy Lee, or All for Christ.” They are both exceedingly
pretty and interesting. The former is a narrative of the sufferings and escape
of a Union family at the South in the early part of the war ; the latter gives
the story of a young girl of intellect and talent who finally turns away from the
path to fame, which seems to open before her, to enter upon one of arduous selfdenying Christian duty. T keJjpa^^p^& tted for a Sunday School prize, or,
indeed, for a present to anv

____________________
CON TUNTS J . & K &
PAGE.

P R IL .
PAGE

political Economy—Capital an d VaTfte. 2 4 ^ iS T W ool.and W oolen M anufactures o f Calilornia..................................................305
2. The Era of Extravagance..................... 255
14. A new Route Across South America... 309
3. * Trade of Great Britain and the United
States for the year 1866...................... 257 15. Irish Sea F ish eries.............................310
4. Coui se of Prices ................................... 263 16. Statistics of Coal..*................................311
17. Cotton and S ilks................................... 312
5. Debt and Finances of South Carolina,
Kentucky and Georgia...................... 264 18. Commercial Chronicle and Re view_313
6 Chica<o and Alton Kailro td.. -.............. 274 19. J f 'im al of Banking, Currency, and
■Finance...............................................320
7 Boston and New York Bank Dividends 276
20. Pittsburg, Fort Wayne and Chicago
«! Report o f James W. Taylor to Secre­
Railroad............................................. 322
tary McCulloch .. ................................ 277
21. Silver on Lake Superior....................... 324
9. Baltimore — Its Manufactures, Com­
merce, etc........................................... 293 22. Railways in France for 1865 and 1S66.. 325
10. Railroad Earnings for February.........299 23. Commerce of Boston............................ 326
11 Public Debt o f the United States........ *00 24. National Banks and Currency Contrac­
tion..................................................... 32a
12* Letter to the Secretary of the Treasury 301
25. The Book Trade..................................... 32n
T h e fo llo w in g a d v e r t is e m e n t s a p p e a r in o u r a d v e r tis in g p a g e s th is m o n th
MERCANTILE.
Eugene Kelly & Co.—36 W all St.

Lillie’s F ire & B urglar-Proof Safes—198 B’way
F ow ler & W ells—389 Broadway.
L. Prang & Co.—B oston and N ew Y ork—H o l­
iday P u b licat ons, etc.
H ow ard & Co. — 619 B roadw ay — D iam onds,
W atches, Holiday Gifts, etc.
M ercantile Library—Clinton H all, A sto r Place
and Eigh' h St.
F erd in an d K orn— 191 F u lto n S t. — E au de
Cologne.
„
Lew is A udendried & Co.—110 Broadway—A n­
th racite and b itu m in o u s Coal.
Grover & B aker—495 Broadway—Sew ing Ma­
chines.
_
A B. Sands & Co.—139-141 W illiam St.—D rugs
J . W .B radley—97 Cham bers S t.—H oop Skirts.
C hickering
Sons—632 3roadw ay—Pianos.
BANKERS & BROKERS.

T e n th N ational Bank—336 Broadway.
B arstow , Eddy & Co.—26 Broad St.
Lockw ood & Co.—94 Broadway.
Y en n ily e & Co.—44 W all St.




D e w itt, K ittle & Co.—88 W all St.
Sim on De V isser—52 E xchange Place.
Duncan, Sherm an & Co.—C oil P ine & N assau.
L. P. M orton & Co.—30 Broad Street.
Robinson & Ogden—4 Broad St.
Howe & Macy—30 W all St.
Gilmore, D unlap & Co.—C incinnati.
Lewis Jo h n son & Co., W ashington.
N in th N ational B ank—363 Broadway.
INSURANCE.

New York M utual Insurance Co—61 W illiam st
Fidelity Insurance Co.—IT Broadway.
M arine—A tlantic M utual Ins. Co.—51 W all St.
/
M ercantile M ut. Ins. Co.—35 W all St.
O rient M utual Ins. Co.
Sun M utual In s. Co.—49 W all St.
G reat W estern Insurance Co.
F ire—H ope F ire Ins. Co.—92 Broadway.
G erm ania F ire Ins. Co.—175 Broadway.
AStna Insurance C o —H artford.
U. S. Life Insurance Co.—40 Wrall St.