Full text of The Merchants' Magazine and Commercial Review : December 1839, Vol. I, No. VI

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H U N T ’S

M E R C H A N T S 5 MAGAZINE.
No. VI.

DECEMBER,

A rt . I.— T H E

1839.

PRO G RESS A N D IN F L U E N C E
M E R C E IN E U R O P E .

OF COM­

T he mighty aid which commerce has afforded in civilizing, enlightening,
and refining mankind, affords a lesson fraught with the deepest interest, and
the most profound and highly elevated instruction. It has been a powerful
engine, in sweeping away the rude and barbarous usages which prevailed
in Europe during the middle ages, and has exercised a tremendous influ­
ence upon the civil, political, and moral condition of the whole world. View
it on every side—in every age— and in whatever aspect, religious, political,
or m oral; trace its path in dark and heathenish nations, and in the bright
and glorious sovereignties of the enlightened world, and we see the charac­
ter of man softened by its presence, and his social condition improved by its
influences. It is the aid of religion clad in a different garb, but contribu­
ting powerfully to its assistance—‘Springing from the wants of mankind—
moving in a worldly sphere, but scattering the gifts of heaven in its path ;
and so intimately are religion, commerce, literature, and the science of ra­
tional government, connected, that in order to appreciate the one, we must be­
come acquainted with a ll; and when we have candidly and deliberately sur­
veyed the progress of each, and its influence and bearing in ameliorating
the moral, political, and social condition of our race, we must acknowledge,
that commerce has opened the way and smoothed the path for all. There
is, perhaps, no nation on the globe, which is so much indebted to commerce
for its strength, the permanence of its institutions, the durability and beauty
of its political fabric, the power almost infinite of its naval force, and the
brilliancy of its intellectual character, as England. Every thing which con­
stitutes England mistress of the seas, nearly every attribute which compo­
ses her constitutional strength, and gives her influence and power among
the nations of the earth, spring from and were created out of the commerce
which in the infancy of her power she fostered.
The ancient inhabitants of England, were a rude, uncultivated race of
men. They were without ships of any kind, destitute of nautical skill, and
almost entirely ignorant of the nations inhabiting the continent of Europe.
Thev held no intercourse with foreign powers, and possessed none of the
v o l . i. — n o . vi.
59




466

The Progress and Influence

refinements belonging to civilized, life; and while Rome glittered in the
riches of foreign climes, and was clothed in. a grandeur emanating from
her adventurous power; while Venice sparkled in the gems with which
commerce had encircled her, and shone forth in intellectual beauty—E ng­
land slumbered in superstition and dark ignorance, destitute of every thing
which constitutes her present greatness. But a new sun dawned upon her—
the sun of conquest. The Saxons, a fierce, warlike race of men, who inhabit­
ed the northern coast of Germany, being called upon by the Ancient
Britons to assist them in repelling the Piets and Scots, who had poured
themselves down in -warlike fierceness from their northern hills, took ad­
vantage of the defenceless state of the Britons, and seized England in their
powerful grasp, and after one hundred and fifty years of fierce and cruel con­
tention, the Saxons succeeded in exterminating the ancient possessors of Britain,
and establishing themselves undisputed masters of the soil. For some time
after this event, the Saxons discontinued all connexion and intercourse
with the continent. They were governed by a number of petty princes,
who were independent of each other, and who would not act in concert in
carrying forward any great national scheme for their mutual advancement.
But when the Christian religion began to pervade the states of Europe, and
by its influence to soften the fierce and warlike spirit of the inhabitants, a
communication was opened by one or two of the Saxon princes with the
continent, and the vast advantages to be derived from commercial intercourse
became apparent; and one of the princes of the Saxon Heptarchy carried
this new policy of foreign commerce into execution, by concluding a treaty
with Charlemagne, who by encouraging commerce, and creating a navy,
had raised France to a pitch of power and naval greatness, which was
unrivalled by any nation of Western Europe; and when the Heptarchy,
under King Egbert, was consolidated into the Kingdom of England, that
prince at once perceived, that owing to the close proximity of his country
to the powerful sovereignties of Europe, the future greatness of his people
must depend upon a rich commerce and a mighty naval force. The spirit
of trade with the countries of Europe was encouraged, and with it nautical
skill was increased and fostered; as the intercourse of England with the
Continent increased, the advancement of religion and learning became per­
ceptible ; and the elegant, profound, and varied literature of the ancients,
was rescued from the dust of the cloister, to enlighten nations shrouded in
dark ignorance and fearful error. The arts and sciences began slowly to
emerge from under the weight of monastic influence, and moved slowly
onward through the intellectual darkness which prevailed: nations became
less strange to each other, treaties were formed, commercial privileges were
claimed and granted, international rights were recognised, lines of territory
were drawn and settled, and even the mighty ocean was parcelled out.
When the illustrious Alfred ascended the throne of England, he took a
more intelligent, comprehensive, and statesmanlike view of the relative situ­
ation of his country, than any of his predecessors ; and his vast mind fully
appreciated the immense advantages of power, and wealth, and national
greatness, which must result from the maritime riches and naval strength
of England; and looking to the intellectual, as well as physical grandeur
of his nation, he was deeply impressed with the conviction that the acqui­
sition of literature and learning, by commerce with foreign countries, would,
in a national point of view, almost equal every other advantage to be derived
from it. Guided by these great and philanthropic principles, Alfred brought




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467

into active requisition every power of his mighty mind, for the attainment
of his ennobling purpose : he sent agents in whom he could repose confi­
dence, and who were selected for their experience and learning, into all the
maritime countries of Europe, and to the remote nations of Asia, to collect
information which would enable him to adopt measures best calculated to
promote and advance the object he had in view. A vast expense was incur­
red, a mighty influence was exerted, and every element set in motion by
this wise prince, to advance his country’s maritime greatness; and in part he
succeeded. The vessels built by him were superior to any which navigated
the northern seas; they were less bulky, more easily managed, faster sail­
ers, and their model more graceful and elegant. But with the death of this
prince expired much of the maritime wealth and commercial prosperity of
England. A few succeeding sovereigns managed to keep up a small naval
force, sufficient to protect them from the incursions of the Danish pirates,
but not powerful enough for the protection of their commerce, which soon
dwindled away. Every one was fearful of trusting his fortune in commer­
cial enterprises, when pirates were hovering upon the coasts, and riding
boldly and fearlessly on the high seas, committing depredations upon the in­
fant commerce of all nations. Maritime adventure was consequently con­
fined in its operations; and commerce cannot exist and flourish, when its
boundaries are settled, and lines drawn around a narrow circle, beyond
which it must not extend: its limits must be infinite ; it must be fettered by
nothing save the broad principles of international la w ; guided by no rules
save those of eternal justice; no narrow policy should obstruct its progress;
its course should be free, but not unprotected.
As commerce died away in England, the inhabitants maintained less inter­
course with their neighbors on the continent; and literature and the arts,
which under the protective system of Alfred had sprung up with rapid
growth, soon drooped and disappeared: and England was fast losing the
rank she had gained among the nations of the earth, when William the Con­
queror subdued her, and opened the way to all her future greatness and com­
mercial prosperity.
From this time is to be dated the intercourse of England with Southern
Europe, and particularly with France. From the conquest commenced the
slow, gradual extension of her naval power, which now sweeps every coast,
and rides on every sea. From this time, also, may be dated the beginning
of that enlarged commerce which forms such a mighty source of the reve­
nue of Great Britain, and which constitutes so vast an amount of the capital
of its citizens. And from nearly the same era may we date the commence­
ment of the Christian religion, which is now taught in almost every clime
to which the commerce of enlightened nations extend; and at this time also,
did the introduction of knowledge and intellectual refinement take place,
which have since worked such great changes in the mind and nature of
man. The commercial advancement of England after the conquest was
slow, but mercantile enterprise proceeded onward with the sure and gradual
strides of ultimate success. Under the influence of the feudal system, which
then prevailed, commercial pursuits were retarded, and often discouraged.
The Normans had been so long accustomed to the glitter of arms, the clash­
ing of steel, the glory and magnificence of successful war, and to the absolute
domination and rule of empire, that the peaceful employment of commercial
life presented but few charms to their rude imaginations, and the trading
citizen was viewed with contempt by the haughty soldier. But when the




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The Progress and Influence

internal laws of England were reduced and consolidated into a system, and
its jurisprudence had begun to assume the elevated tone of justice; when
the administration of the laws, although feeble, had become more uniform
and impartial, and civil right was less trampled upon by military power,
the spirit of commercial adventure revived, and its influence spread through­
out the kingdom. Until commerce poured in her infant stores, the inhabi­
tants of England had possessed none of the elegant refinements which mark
enlightened civilization ; but few of the necessaries of life were known, and
a barbarous magnificence was enthroned in intellectual desolation: but when,
under succeeding monarchs, the intercourse of England with foreign nations
opened a wide door for the embarkment of private fortune in mercantile
pursuits; when the broad mantle of international law encircled within its
protecting folds the genius of commerce, the rich freighted ship was wafted
in peace and security, and bore its golden treasures, both physical and intel­
lectual, from every country and every clime.
The reign of Edward the Third marked a great change in the commercial
character of the English people. This monarch formed an extensive con­
federacy with the Continental states, which opened a wide intercourse with
the Low Countries and Germany. The acquaintance with these nations,
spread out to the astonished minds of the English people, the immense
wealth, power, and grandeur, which commerce bestows upon the nations by
whom she is protected and encouraged. At this time, situated in the midst
of the European powers, surrounded by the rude, the mighty but half crum­
bled monuments of feudal barbarism, reared amid the gothic superstition of
the age, towered the commercial riches and naval strength of Flanders.
But a short time previous, and this nation was enshrouded in the darkest
ignorance, and the most gloomy superstition prevailed : the latent energies
of its people were chained down by the rude strength of the feudal system,
and the spirit of adventure was crushed by the tyrannical laws imposed upon
its inhabitants by the military lords who reigned masters of the soil. But
the situation of this country made it impossible to fetter forever the natural
advantages with which it had been favored by Providence. Situated be­
tween the Mediterranean and the Baltic, the kingdom of Flanders soon be­
came the medium of communication between the coasts which border upon
these mighty seas; and when once the great commercial advantages of this
country became known to its citizens, the chains of ignorance and despot­
ism which bound them were burst asunder, the infant genius of commerce
reared itself in slow but mighty grandeur, and the warlike spirits of those
whose minds were still wedded to the magnificent chivalry of the age, was
transferred from the gloomy castle, and the glorious theatre of knightly
deeds, to the proud war-ship which reared its mighty bulk for the protection
of a nation’s youthful commerce. When Edward ascended the English
throne, Flanders shone brilliantly forth among the sovereignties of Continent­
al Europe, first in commercial wealth and greatness, strongest in naval
power, farthest advanced in manufactures and the arts, and the most culti­
vated and refined in the intellectual character of her people. The compre­
hensive mind of Edward at once saw the cause which had worked such
mighty changes in the prosperity of this nation, and in the intellectual cha­
racter of its inhabitants. He saw the incalculable advantages which must
inevitably result from trade, commerce, and manufactures; not only in en­
riching his people, and extending his strength and the glory of his empire,
but in ameliorating the moral, physical, and intellectual condition of his coun-




v
\
A
o f Commerce in Europe.

469

try. Deeply impressed with the importance of these considerations, all the
mighty energies of his acute and discerning mind were brought into imme­
diate and active requisition for the advancement of his great purpose. By
holding out the most brilliant and flattering allurements, he induced Flem­
ish artisans to settle in England, and commenced the manufacture of wool­
len cloths in his own kingdom; and feeling confident that his own subjects
possessed strong energy of mind, together with genius, not glittering but
useful, he first turned those qualities to cultivating a knowledge of the arts
and manufactures, and thus laid the foundation for that glorious superstruc­
ture, which at present forms so large a portion of the immense wealth and
prosperity of the English nation. By a course of national policy, which
characterizes this monarch as one of the greatest and most profound states­
men that ever filled the throne of England, he succeeded in rearing estab­
lishments for the manufacture of English products; and instead of selling
the raw material which was raised on English soil, to enrich the citizens
of Flanders by its manufacture, rich cloths were made in E ngland; and
after supplying the wants of his subjects, the remainder was sold on the
continent, and articles of foreign manufacture taken in exchange.
As the arts and manufactures increased, ships were built, and commerce
advanced with rapid strides ; the enjoyments of civilized life were communi­
cated to distant nations; a more liberal and enlightened tone of feeling per­
vaded society; and the Christian religion began to shed abroad its golden
light, softening the fierce and warlike nature of man. Nations began to
look upon each other, not as enemies, but as neighbors and friends; and
as commerce increased, and extended abroad its enriching influences, a
common interest bound them together : Treaties were formed, mutual bene­
fits and advantages were shared, protection to the vessels of all nations was gua­
rantied by maritime powers, and freedom of trade was rapidly prevailing.
The monarchs, who for more than a century succeeded Edward, neglect­
ed the protection and advancement of the mighty plan which he had so
skilfully and successfully laid. The minds of the English people were not
yet prepared for so great a change in their national character; and nothing
short of the mighty intellectual power and brilliant genius of Edward, could
have effected what he accomplished. There was still too much of the pride of
feudal aristocracy existing in England, too much love of warlike pomp,
and not enough of real liberty, to render mercantile pursuits profitable, safe,
and honorable : the rights of the citizens were not yet defined with sufficient
certainty ; the power of the nobles was too arbitrary; the king’s preroga­
tive too m ighty; and the liberty' of the weak too often violated with im­
punity.
From the time of Edward’s death, until Henry the Fourth mounted the
English throne, civil wars, intestine dissensions, and military power, pre­
vailed; and turbulence, violence, and injustice, marked the years as they
rolled on, increasing arbitrary power and military force, and blackening
the bright rays of intellectual light, which were beginning to shed a soften­
ing influence over the rude spirit of the age, and crushing and destroying
the infant form of commerce in their rude embrace. W hen Henry ascend­
ed the throne, commercial prosperity again revived ; his policy was provi­
dent, vigilant, and wise ; and he promoted the interests of commerce to the
utmost of his power—he encouraged the arts and manufactures, and by his
wisdom and perseverance, effected a great alteration in the character of his




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The Progress and Influence

peopla The mighty advantages which a rich commerce and a powerful
navy would bestow, the great national benefits to be derived from trade and
manufactures, were known and appreciated. The spirit of contempt towards
those engaged in trade, manufacture, and commercial adventures, which
had so universally prevailed among the higher classes, had somewhat
abated; and as the introduction of the necessaries and luxuries of civilized
life became more general, and their use more universal, the source from
which they sprung was clothed with more privileges, and was thought
more worthy of just and beneficent laws. The settlement of foreign mer­
chants in England was encouraged— rights and privileges were afforded
them—and their personal security, and personal property, were protected
by liberal and enlightened laws, and a wise system of internal regulations.
During this reign, a commercial treaty with the Hanse Town merchants
was formed upon the basis of mutual benefit. English Factories were es­
tablished in foreign parts, affording immense opportunities for increasing
commercial prosperity, and securing for those engaged in mercantile pur­
suits large privileges and rich emoluments. This was a part of that great
system of powerful foreign commercial establishments, which has since
reached the most remote portion of the habitable globe, constituting a
source of wealth and power almost infinite. W ith the increase of com­
mercial prosperity, and the introduction of laws necessary for its protection
and advancement, literature and learning revived, and by their influence,
although mingled with the superstition of the cloister, aided powerfully in
polishing the rude minds of the haughty barons, and paved the way for
more enlightened legislation, and produced a greater regard for civil, poli­
tical, and religious rights and privileges: a greater refinement was intro­
duced, and the sword was appealed to less often as the arbiter of justice.
Through the agency of commerce, and the intercourse which it opened
with foreign countries, ancient literature was redeemed from the dust of
ages—snatched from the hand of the rude destroyer, and transferred to na­
tions, whose enlightened people, glorious institutions, mighty power, and re­
ligious observances, show with conclusive force the influence it has exerted.
The materials for the creation of commercial adventure had been, for
many years, slowly and steadily forming, throughout all the maritime
countries of Europe. Visions of golden prospects were revealed, in per­
spective, to the ambitious minds of those whose thirst for mercantile em­
ployment was excited by love of gain, while the nobler spirit of discovering
new worlds, and benefiting the human race, actuated those whose natures
were less sordid, and who possessed sentiments of a more generous and
philanthropic character.
During the fifteenth century, almost every nation whose territory border­
ed on the ocean and great seas, possessed ships trading to foreign lands,
which brought back to their respective countries rich returns for the risk
encountered in embarking life and fortune upon the watery element. The
English, under the wise but somewhat turbulent reign of Henry the Seventh,
were carrying out those great plans of commercial advancement, and naval
strength, which the giant mind of Edward the Third had conceived and
laid. A more universal prosperity prevailed, and a greater equality of
rights and privileges were established, than the English people had ever
before enjoyed. So auspicious a time for the increase of commerce and
naval grandeur, was not allowed to pass unimproved; and the king, by his
covetous and grasping disposition, accomplished what the noblest energies




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471

could scarcely have achieved. The imposts upon foreign goods were ex­
orbitantly high, and extravagant in the extreme j and the revenue afforded
to the king, was in proportion to the shipping employed in importation : to
increase the commerce of England with foreign nations, for the purpose of
filling his coffers with g'olcl, was the sole aim of this monarch; and towards
the attainment of this object, the energies of his mind, together with his kingly
influence, were directed. He concluded commercial treaties, which operated
beneficially in promoting the commercial prosperity of the English nation ;
and although his intercourse with foreign governments was not marked by that
lofty and liberal policy, which characterizes the truly noble mind and great
statesman, he evinced a profound desire to settle the commercial relations of
his country, with foreign powers, upon a broad and equitable basis, which
should secure to his subjects safely and universal justice. Previous to hisreign,
the building of ships had been much neglected, and most of the foreign trade
of England had been carried on in foreign vessels: but great advantages,
exclusive rights, and superior privileges, being conferred upon those who
should prosecute their trade in English ships, the construction of vessels
rapidly increased, and the English merchant ship rode the mighty deep,
freighted to the wave with the riches of foreign lands. A new class of men
had now sprung up in the English nation, and was fast increasing in
wealth and influence. It was composed of the merchants and manufactu­
rers. Commerce began to shower forth its benefits in golden profusion, and
to confer its riches with no meagre hand. Mercantile pursuits were consi­
dered more honorable, and were viewed with a more enlightened considera­
tion by the haughty noble. The merchant was now chosen to sit in the
high legislative body of the nation, and the commons were often clothed
in titled dignity by their sovereign. A more extended intercourse with
foreign countries, growing out of commercial relations, had expanded the
mind of man, enabling him to comprehend and appreciate a broader and
more enlightened system of national government, and a more just basis of
international rights. About this time the invention of the compass increas­
ed still farther the spirit of maritime adventure, for purposes of commercial
advancement and foreign discovery. The rich commercial cities of Venice
and Genoa, had hitherto monopolized the immense trade of the western world
to India. Enjoying in security the brilliant yet solid advantages which this
traffic afforded, these cities had reared themselves to the pinnacle of riches
and power. Their citizens lived in the midst of princely splendor, and were
surrounded with almost regal pomp and magnificence. The vast advanta­
ges resulting from the exclusive trade of these Italian republics with India,
and the incalculable riches which their citizens derived from commercial
pursuits, was viewed by the sovereign of Portugal as a powerful reason for
endeavoring to supplant these cities in the enjoyment of a portion of this rich
traffic. Portugal had been governed by a succession of princes, who, by pur­
suing a broadand liberal policy towards their neighbors, and conferring upon
commerce peculiar privileges, and clothing those engaged in it with exclu­
sive rights, had gained for their country a high rank among the maritime
powers of Europe. Believing that a new passage could be discovered to
India, by which the trade of the Italian cities to that country could be par­
tially cut off and destroyed, and its rich products diverted into the hands of
his subjects, the sovereign of this kingdom engaged nautical adventurers, to
proceed along the extensive coast of Africa, and endeavor to trace out a new
path to India, and thus open its stores to the enjoyment of his people, and




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The Progress and Influence

for the advancement of their commercial prosperity. In a few years this
great object was accomplished, a new highway across the broad ocean to
Oriental India was explored, and the glory of its accomplishment, and the
treasuresit opened to the maritime nations of western Europe, were the rich
results of this glorious scheme of commercial aggrandizement.
In that age, the discovery of this country, by Columbus, opened a wide
field for commercial action, and furnished the most powerful incentives to trade
and adventure ; displaying also rare and varied materials for improving the
human mind, and enlarging the comprehension of man.
W hile almost every maritime country was engaged in cultivating en­
larged commercial relations with foreign nations, and endeavoring to main­
tain peace and amity with its neighbors ; while the sovereigns of Europe
were vying with each other in naval grandeur and strength, and striving
to attain the foremost rank in commercial prosperity ; while the supreme
power of each nation was revising and improving its system of internal laws
and regulations, and rearing the fabric of free and equal justice—France
seemed to have rolled back towards the gothic age of rude barbarism.
In the king of this country centred arbitrary rule, and despotic rig h t; he
had wrested from the nobles their strength, and with it, had swelled his own
power. There existed no middle class : all below the nobility were slaves;
and even the nobles possessed little, if any real power. Their superior pri­
vileges existed but in name, their rights were merely nominal, and their
property depended upon the nod of an imperious monarch : the king had
destroyed every element which could advance the happiness and prosperity
of his people ; he neglected their commercial interests, and crushed the spirit
of trade and adventure; by his measures, he discouraged the arts and
sciences, and repressed the rising energies of his nation. All the maritime
countries of Europe were towering upward in commercial riches, naval
power, and intellectual greatness; while France, whose situation was un­
rivalled, and whose natural resources were of a mighty character, remained
a dark spot upon the map of Europe. The rule of despotism was laid upon
the nation, and the spirit of commerce withered under its influence ; no laws
were made, save those tending to the perpetuation of monarchical strength :
no measures were proposed, except those calculated, to foster consolidated im­
perial power. The nobles of the realm had conveyed away their rights ;
and the prerogative of their king frowned in infinite might upon the struc­
ture they had reared. Under such influences, commercial adventure could
find no foundation upon which to re st; that portion of the French people,
whose rank in life would have permitted them to engage in mercantile pur­
suits, were prevented by their poverty ; and those who possessed sufficient for­
tunes were deterred by their connexion with the nobility, who considered
traffic of any kind mean and degrading.
Could the rude, uncultivated minds of these ignorant nobles, have appre­
ciated the amount of wealth and luxury which foreign commerce bestows
upon a nation ; could they have foreseen and comprehended the enlighten­
ed change which intercourse with distant countries creates in the intelligence
of man—commerce would have been encouraged, and by uniting in physi­
cal strength, their king would have been coerced into the pursuit of a more
liberal policy. But the spirit for military action was still strong on the con­
tinent of E urope; and especially to the minds of the French people, did mili­
tary life present charms. The age of chivalry was too recent to leave the
mind free from its influence; deeds of warlike renown shone through the




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473

mists of past years; and knightly achievements glittered to the rude fancy,
and fascinated the imaginations, of those who were not yet taught to love the
quiet enjoyments of civil life, and to appreciate the gifts bestowed by peaceful
occupations. Where the influence of commerce is once experienced, and its
advantages appreciated, the most turbulent spirits will become settled, and
the greatest disorganization assume a consolidated system : and this follows
from the most powerful considerations which actuate mankind—the love of
riches; for when the citizens of any nation have embarked large sums in
mercantile adventures, and while their fortunes are composed of property
of a fluctuating, uncertain nature, no efforts will be spared for the mainte­
nance of peace and internal quiet, and for the promotion and continuance of
sound and beneficial laws—no energies will be left untried to secure a uni­
form system of international right, and to place commercial relations with
foreign powers upon the broad principles of justice, recognised and enforced
by the laws of nations. And when the introduction of commerce, manufac­
tures, and the arts, into any country, creates wealth and riches, and forms the
subject of internal legislation ; then will the frame of a wise and uniform
system of national laws be adopted, their injunctions will be respected and
obeyed, and the minds of the inhabitants assume a peaceable character.
The truth of these positions, with reference to maritime nations, is forcibly
exemplified, when we look abroad upon the commercial kingdoms of the
earth ; and so powerful are the interests which bind them together, that in
the present age, it would require the most urgent and mighty causes, to in­
duce any commercial country to declare war against its neighbor. Under
succeeding reigns, the constitution of the French Government underwent
many judicious alterations; and the close proximity of England, enabled
France to see clearly and distinctly the great causes which were producing
such a mighty and universal change in the prosperity of the English nation.
There existed a vast difference in the national character of the two countries;
but as far as such dissimilar materials w'ould admit of the same practical appli­
cation, the government of France bestowed upon its merchants privileges as
beneficial and universal, as were conferred by the laws of England upon its
own citizens ; and as the disabilities under which commerce had existed
were swept away—as exclusive rights, and peculiar protection was extend­
ed to those engaged in mercantile and manufacturing employments—com­
mercial wealth and prosperity rapidly increased throughout the French na­
tion : manufactures were encouraged—the arts and sciences sprang into ex­
istence, and flourished—and the dark cloud of bigotry, superstition, and
error, which had so long spread its gloomy mantle over the mind of the na­
tion, was dispersed by the bright sun of commercial prosperity.
The commencement of the reign of Henry the Eighth, in England, was
characterized by no monarchical or legislative policy, which tended towards
intellectual refinement or commercial greatness: it was marked, however,
by a degree of courtly pomp and splendor, together with a luxury and
magnificence, which required the aid of foreign riches to gratify ; and with­
out the assistance of government, the spirit of private adventure prompted a
trade to foreign and far distant nations, for the purpose of obtaining luxurious
commodities to gratify the extravagance which reigned. Thus did the
dissipation and regal vice in which this monarch lived, create a foundation for
trade, manufactures, and foreign traffic, which the measures of his government
contributed so little to promote; and the spirit of foreign enterprise in which
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60




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The Progress and Influence

his father enlisted all his energy and influence to create, grew and flourish­
ed without monarchical attention or cultivation. The seeds of commercial
wealth and grandeur had been sown in a rich soil, and had taken root so
deep as not to be easily eradicated. The prosperity of the English nation
depended upon the increase and success of its commerce, and the liberty and
happiness of its people had become identified with a system which created
powerful inducements, and formed mighty considerations for liberal and en­
lightened legislation, and gave birth to wise and impartial jurisprudence.
Previous to this reign, English merchants had no settled establishments for
mercantile purposes in the New World, and in this respect were far behind
the Spaniards, who had taken possession of the extensive island of Cuba,
and were fast increasing in wealth, independence, and power ; and by their
enterprising and far-reaching spirit, had discovered and secured the vast trea­
sures which an exclusive traffic never fails to bestow.
Perceiving the golden returns which so extended a trade conferred upon
those engaged in it, and looking to the ultimate advantages which his coun­
try would acquire from its advancement, Mr. Thorne, one of the most
wealthy and influential merchants in England, and who possessed a bold,
adventurous spirit, which no disappointment could dampen, projected and
established a factory in Cuba, and was the first Englishman who could
claim the distinction of creating a commercial settlement in the new world.
The opportunities which his situation afforded him, for the acquirement
of information to open a still wider field for commercial adventure, were im­
proved, and immense sums were lavished for the advancement of knowledge,
calculated to facilitate the growth and advancement of foreign commerce to
the western continent. The glorious example which this noble, disinterest­
ed merchant afforded, was imitated by others, eager for the acquirement of
fame, or desirous of accumulating wealth and treasures.
A traffic with the Brazilians was opened by Hawkins, father to the
renowned voyager, and directing his course across the broad bosom of the
ocean, he surveyed new coasts, and discovered new lands.
The spirit of commercial adventure had taken a powerful hold upon
the minds of the English people, and the brilliant and useful advantages
which commerce had bestowed upon the nation were deeply felt and fully
appreciated ; they saw the glorious structure composed of riches, power, and
intellectual greatness, which it had reared in the heart of their country, and
experienced the ameliorating influences it had bestowed upon their social
condition; religion, aided by its power, and fostered by the general intelli­
gence it had created, shed its soft, calm light, upon the mind of m an; and
learning opened its enlightened gifts to all, and the weak and humble citi­
zen shared the bounty of a wise and liberal policy of national laws, in just
equality with the powerful noble.
The immense wealth and increased power which Portugal had acquired
from its lucrative trade to India, induced English mariners to attempt the
discovery of a north-west passage to that country; stimulated by love of
gain, acting under the influence of ideas powerful and comprehensive, and
urged and encouraged by the expanded and enlightened views which mari­
time adventure had opened upon the mind, the undertaking was made, and
its projectors disappointed by its failure; but for every attempt which, like
this, was fraught with misfortune and loss, numerous instances of the most
brilliant success could be pointed o u t; and, instead of damping the commer­
cial ardor of the age, it served to excite a still deeper love of nautical science,




o f Commerce in Europe.

475

and to impress upon the mind with greater force, the necessity of learning
and comprehending the art of navigation.
At this time the reformation had commenced in England, and was moving
onward with rapid and gigantic strides; and whether its success was the off­
spring of the rapacious spirit of Henry the Eighth — whether he shook off
the papal yoke from pride, or whether he was induced to favor the protestants from considerations of a religious nature influencing his mind, are ques­
tions of minor importance; for, without the co-operation and assistance of his
subjects, he could have effected nothing. And had the English people la­
bored under the dark ignorance, the blinding prejudices, and the want of
intellectual knowledge which prevailed before intercourse with foreign
countries, and an acquaintance with the constitutions and laws of distant na­
tions, had enlarged their views and expanded their minds, enabling them to
comprehend the immense advantages to be derived from an enlightened and
liberal change in national policy and internal system, without at the same
time causing them to apprehend danger and destruction from the introduc­
tion of innovation and novelty—the brilliant and happy results which have
flowed from the reformation would have been unknown, and the intellect of
man would now be chained down in the darkest ignorance and most fatal error.
But the terrors of popery were met and conquered; the elements set in mo­
tion by the conflict were hushed; the advocates of protestantism became less
violent: society assumed a more liberal and enlightened tone; and the secu­
rity of the citizen was guarantied by a more uniform and impartial system of
laws and national policy. From this time the prosperity of the English
nation steadily advanced; the powerful fabric of popish strength had been
levelled to the earth, and its influence scattered and destroyed; that ecclesi­
astical policy which declared commercial pursuits and religion incompatible
with each other, was annihilated, and the genius of commerce was reared in
riches, wealth, and greatness, upon its ruins. Nothing now remained to
retard the prosperity and growing wealth of the English nation. Every
obstacle to the increase of foreign commerce was removed; treaties of the
most beneficial character were entered into with foreign powers; maritime
rights and privileges were claimed and acknowledged; and the laws of na­
tions, and the principles of international policy, were settled and established.

N e v e r t a l k of y o u r d e sig n s t il l t h e y h a v e b e e n accom ­
, AND E V E N T H E N T H E LESS YOU SAY T H E B E T T E R . ---This is a

pl ish e d

very important caution for the merchant or man of business. Some persons
are naturally so talkative that they no sooner form a design of entering into
a speculation, or following some particular branch of trade or commerce,
than they take the earliest opportunity of acquainting all their friends with
it. By giving way to this weakness, you put it in the power of others to
forestall you, and those whose interest interferes with yours, will do all they
can to disappoint you for their own advantage. In this respect, the example
of G i r a r d , the Napoleon of commerce, is worthy of all imitation. No
man ever heard him boast of what he would do. He remained quiet and
silent till the time came for action, and then he struck the blow with an un­
erring aim which insured him success. As a merchant, he was inquisitive,
active, prompt, and sagacious: studious to learn all he could from others, and
as careful to impart nothing in return.— Foster.




476

The Merchant Service.

A rt . II.— T H E M E R C H A N T SERV ICE.
H aving seen much, of the Merchant Service, and witnessed the want of
system and economy in its administration, I have thought that some sugges­
tions, on this important subject, might be acceptable to such of the readers
of the Merchants’ Magazine* as are connected with the mercantile interests
of the country.
I have always entertained the opinion that the owners, masters, and crews
of merchant ships, would be mutually benefited by the adoption of a uniform
system of equipment and disbursement, and the idea occurred to me more
forcibly very recently, when we had reason to anticipate a war with a great
and powerful nation ; in the event of which, those vessels that ventured be­
yond our ports, unattended by convoy, must of necessity have been well armed
and manned ; and the want of that order and discipline so indispensable in
armed vessels, would have rendered the precaution of arming them almost
useless. Although there is now but little prospect of war with any power,
yet as some benefit may be derived from the discussion of the subject, I shall
endeavor to point out such improvements as may tend to the interests of the
owners, and essentially promote the comfort of all concerned.
No one can find fault with the construction, the masting, the rigging, or
the internal arrangement for the accommodation of the officers and crew, or
the stowage of the cargo of our merchant ships; they are admirable in all
these respects, and are generally commanded by experienced, gentlemanly,
and faithful men. In their outfit and discipline there are many imperfections,
which may easily be corrected, and grievances on the part of the officers and
crew, which ought to be removed.
I do not intend to impute to ship owners any contracted or sordid views.
As a class, I believe them to be high minded and liberal, and I am convinced
that they would most readily adopt any suggestions calculated to amelio­
rate the condition of that devoted class, to whose patient industry, and expo­
sure to perils and privations, may be mainly ascribed the unparalleled pros­
perity of our commercial interests. As one familiar with the merchant ser­
vice, but in no way connected with it, I trust that my remarks may be re­
ceived in the spirit of fairness, by which they are dictated.
I propose, here, to suggest such ideas as occur to me on the subject of
enlisting men, and their condition while on shore, reserving for a future
occasion the subjects of their moral improvement and instruction, and their
discipline and treatment ashore and afloat, embracing the collateral points
of provisions and clothing.
W ith regard to the mode of enlisting men, a prominent evil prevails, in
the correction of which the most serious obstacles are presented. It would
be found difficult, under existing circumstances, to rescue sailors from the
influence and rapacity of their landlords, or as they are more usually termed
crimps, and at the same time secure the services of these men, in the prompt
enrolment of crews for outward bound ships ; even in the naval recruiting
service, with all the checks that are systematically put in force to protect the
interest of the sailor, it is not unfrequently the case that a recruit is taken to
the receiving ship, after having been fleeced of the earnings of his last voy-




Originally written for the N aval Magazine.

The Merchant Service.

477

age, and brought in debt to the whole amount of his wages, advanced at the
moment of enlistment.
The writer has known instances in which sailors have been discharged
from ships of war, with abundance of clothing, and balances of three and
four hundred dollars in their pockets, and, in four days, have presented them­
selves at the rendezvous for reshipment, without money or clothes, and with
a bill against them equal to their three months advance. Many attempts
have been made by officers, to induce these misguided men to save their
wages, and they have succeeded so far as to prevail on many to deposite con­
siderable sums in the Savings B an k ; but the moment they have been sepa­
rated from the influence of the officers, they have been persuaded by the
harpies around them, to withdraw the whole, and expend, in a few days, the
hard earnings of as many years.
It would be easy to fill a volume with a relation of the various tricks put
upon sailors to rob them of their money. Jack is aware of the character of
his enemies, but heedlessly abandons himself to their wiles, spends his few
days of comparative wealth in drunkenness and riot, and awakens from the
debauch pennyless, and suffering all the torments of the “ horrors.”
Sometimes we see an old tar, who has been many a time cheated by these
scoundrels, steering clear, as he imagines, of the “ land s h a r k s b u t , instead
of being fleeced by his landlord, he is robbed by coachmen, and other idle
rogues, who hang about the taverns and grog-shops frequented by sailors ;
so that, in the same short time, his money disappears.
A ll sailors are fond of coach-driving, and many aspire to the more adven­
turous exercise of riding on horseback, to them the very extreme of daring;
and a few have even attained the high privilege of riding their own horse.
A well known sailor in the Navy, Jack Hamilton, often laid aside a large
portion of his wages for the purchase, on his return from sea, of a horse.
H e imagined himself an excellent judge of horse-flesh, but, like many others
of the same pretensions, was invariably cheated. At last, however, he se­
cured possession of a steed which soon won all his affection. This was an
old, broken-down, black coach horse, with a long tail. On this trusty animal
—trusty, because he was sure never to put in bodily fear his lord and master
by any extraordinary feat of activity—Jack was wont to display himself in
Broadway, about noon, making his quaint remarks upon the belles and beaus
as they drifted up and down the side-walks. But this happiness could not
last long; his money was soon gone, and he must go to sea for more. He
could not think, however, of permitting his favorite black to fall, again, into
the hands of land lubbers. So he put him out to board, and left a half pay
ticket for his support, while absent on another three years cruise. He had
forgotten, however, or perhaps never knew, that the age allotted to a horse
was not three-score and ten ; and, as the nag was sinking into the vale of
years when he became the property of his last and kindest master, he did not
survive to welcome him back from sea.
Jack, on his return, gave to the memory of the old black a few sighs, and
has since continued to prove the sincerity of his affection, for he has never
bestrode another steed. He was his last love, and he has remained as true
to him, to use his own language, “ as the needle to the pole.”
It is a singular trait in the character of sailors, that those who are the
most economical at sea, are proportionally improvident when they get ashore.
I knew, many years ago, a fine old seaman, captain of the waist on board
one of our frigates, who, when on shipboard, was a very pattern of parsimo­




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The Merchant Service.

ny, and by saving had accumulated a large amount of wages. His period
of service happened to expire while the ship was at New London, and he
demanded and received his discharge. He went on shore with several
hundred dollars, hut, when there, knew not what to do. There were no
villanous crimps, in that quiet place, to help him to spend his money; and
he wandered half drunk about the streets, amusing, by his humorous sallies,
the staid people of the town. At last he purchased an old wheel-barrow,
into which he emptied the contents of the neighboring cake and candy shops,
adding a goodly supply of toys and ribands; thus charged, he perambulated
the streets with a crowd of laughing children in his wake, all willing to be­
come his customers, since he distributed his wares gratis. In trundling his
barrow about, the wheel was broken, but this annoyed him but little; he
soon cleared the wreck, and substituted as a jury wheel, in its stead, a large
white-oak cheese, purchased of the nearest grocer.
W ith this rig he continued his route. In a few days he had exhausted
this source of amusement, as well as the contents of his purse, when he re­
turned on board, and resumed with cheerfulness his former occupations, com­
mencing again to lay up money for another cruise on shore.
Knowing, as we do, the character of these simple and confiding men, we
can easily account for the influence exercised over them, by their landlords.
So long as their money holds out, they are permitted to do as they please;
but the moment the last dollar is expended, they become the slaves of these
ruffianly tyrants. To procure food and drink they must have money or
credit; and they soon contract a debt, which can only be liquidated by the
advance, usually paid, to those engaging on a new voyage. Their clothing
has probably been sold or pawned for liqnor, and they embark with hardly
sufficient of raiment to cover their nakedness. Being debtors to the land­
lords, these men have an unbounded control over their movements; they can
prevent their shipping, and, by combination among themselves, detain ves­
sels for want of hands.
There has always been more or less difficulty in getting the crews on
board of outward bound merchant ships. Many are put on board drunk,
and incapable of performing any duty, for hours after the pilot had taken his
departure. In the southern ports it is infinitely worse than at New-York.
At New Orleans, for instance, sailors, in the expectation of obtaining higher
wages, generally desert from the ship in which they are engaged to perform
a voyage: and such is the want of energy, in the administration of the laws
in regard to seamen, that punishment is rarely inflicted upon them for the
most open infractions of engagements, to which the most important of our
national interests require that they should be bound, at least as rigorously as
any other class of men. Ships, in this way, are left without crews; and to
enable them to prosecute their voyages, others must be obtained, upon the
emergency, at any cost of trouble or expense. To this end the services of
the landlords, the very men who harbor the runaways, are put in requisition,
and these wretches, after trumping up a bill against the deluded sailor, thrust
him into his new ship drunk and half naked. Thus he changes from one
ship to another, after spending a week of debauchery in some filthy place of
concealment, where he contracts a debt to his seducer, which he is constrain­
ed to work out by his last contract, unless he can contrive to desert again,
and pass another week of riot.
Most vessels now sailing from New Orleans, are towed by steam-boats to
the mouth of the Mississippi: and as each steamer takes several at a trip, the




The Merchant Service.

479

hour of departure is well understood, that all may be in readiness at the ap­
pointed time. It therefore behooves the captains to have their respective crews
on board. To effect this the crimps are busy in bringing forward their men;
but it often happens that some of the number have strayed from their dens of
concealment, and are not to be found when the ship to which they are as­
signed is to depart, and it becomes necessary to have others in their place.
It matters little to the landlord who he substitutes. Sometimes, when em­
barrassed, they will seize on any one in sailor’s garb they may chance to
meet; perhaps some drunken boatman of the river found asleep on the Levee.
In the hurry and confusion of departure, which usually takes place in the
evening, the trick is not discovered ; and the poor wretch, when roused from
his insensibility, finds himself at sea, perfectly unconscious of the voyage he
is to make.
It is difficult to suggest any effective remedy for these and similar abuses.
To improve the character of the landlords appears to be the most efficient
course, and this can only be done by the merchants, by countenancing and
employing the few among them who are conscientious and well-disposed, and
by visiting upon the much larger portion, the vile and dishonest, the full
penalties of the law, when ever these evil practices can be detected.
In a great city like New York, whose commercial wealth is second only
to that of London, there should exist a competent court, devoted exclusively
to that portion of the community connected with shipping, steamers, and
river craft. It should be made the province of the magistrates of this court,
to have cognizance of all misdemeanors committed, either on board vessels
in the stream, or at the wharves, to keep a registry of all sea-faring men, and
to exercise a general supervision over the conduct of landlords, crimps, sailors
and watermen. But, in default of this useful tribunal, which it is not pro­
bable will very soon be established, the merchants, as a body, might consti­
tute an agent to look after these concerns, whose duty it should be to super­
intend the enrolment and discharge of seamen ; the arrival and departure of
ships; the suitable supplies and stowage of provisions and water; the getting
the crews on board outward bound vessels; assisting in securing those just
arriving: and, in a word, to watch over the mutual interests of the merchants,
masters, and sailors.
The well-directed efforts of these agents, when put forth, in concert with
those of the “ Bethel and Seaman’s Friend Societies,” would have an extra­
ordinary tendency to defeat the artifices of the landlords, and benefit immea­
surably the moral and religious character of seamen. W e should no longer
hear of combinations among them for higher wages; merchants would, of
their own accord, pay them with a just liberality suited to the exigencies of
the times, nor would ships be detained when ready for sea, at great expense,
with the frequent loss of a fair wind.
The abuses which exist can, and ought to be, corrected. Captains and
mates are not so much at fault in the case, as owners and their agents. W e
are constantly reading in the public papers, of large donations by merchants
to various objects of benevolence at home, and in distant countries, but rarely,
very rarely, do we hear of any having for their chief object the benefit of
those neglected men, to whose hardy toil they are indebted for their princely
fortunes. Do they fulfil to these the duties enjoined upon them, as faithful
masters, watchful over the moral and religious condition of their servants ?
Do they give proper attention to their health and comfort ? The answer
must be in the negative. This neglect ought not, perhaps, to be ascribed to




480

The Comparative Importance o f

a want of any sentiment of justice or liberality towards seamen, among ship­
owners. They would, doubtless, most promptly promote any measure, that
should promise benefit to the sailor. Let them understand by what means this
desirable object may be attained, and they will cheerfully lend their best influ­
ence to the work. Of this we feel assured; for among them, if there be a few
ready to plunder Greek or Turk, Jew or Gentile, there are others as generous
and open-hearted with their wealth, as the most heedless sailor in their employ.
Y.
A rt . III.—T H E

C O M PA R A TIV E IM P O R T A N C E OF A G R I­
C U L T U R E , COM M ERCE, A N D M A N U FA C T U R E S.

I t is a very important question, in political economy, how far govern­
ment should interfere, with a view to control or direct the enterprises of in­
dividual citizens. We speak of enterprises in a general and comprehensive
sense; and include what is usually meant by trade, business, commerce,
and speculation. From the nature ‘of man, it may be justly expected that
there will be different employments, occupations, and pursuits, in society.
And it is best it should be so. The division of labor, or labor for different
objects and ends, is as useful as it is natural, and it is an equally evident tru­
ism, that every one has a right to choose his own pursuit or employment, in
so far as it does not injure his neighbor or the community at large. A
greater amount of product is the result of the action of this unrestrained prin­
ciple ; and every individual has also the greater satisfaction in his particular
pursuit or labor.
In the early periods of society, there was probably very little restraint and
very little interference with individual enterprise and employment.. The
only, or principal compulsion, was to oblige men to become soldiers, in ma­
ny cases, for the glory of a military prince, whose commands the people
were obliged to obey; or to labor on public works, undertaken by the pride
of an opulent and powerful monarch. Commercial intercourse in the time
of Solomon, and even five centuries before, between the east and the west,
was chiefly owing to individuals. Though kings, who could command
much, were often concerned in such pursuits, governments did not interfere
for the sake of revenue, or to increase the wealth of the nation over which
it was established. The consideration of personal profit alone stimulated the
efforts and adventures of the merchants.
It is not intended to enter minutely into the great question of how far
governmental regulations are necessary and proper in the concerns of trade.
It were entirely needless. The subject has been often and elaborately dis­
cussed. A few desultory remarks are all that is proposed, in the belief that
the interference of government is sometimes impolitic, and serves only to em­
barrass the regular pursuits of trade.
That labor and trade should be perfectly free, or that trade should regu­
late itself, is generally admitted to be a correct maxim in political economy.
But it is said that there are exceptions to this general rule ; and it is con­
tended, that in certain conditions of society, and under particular circum­
stances which sometimes occur in the trading world, the government may
rightfully and wisely interpose its regulations to add to the general prospe­
rity, or to prevent great suffering among a large portion of the community.
That such cases may exist, cannot be denied by those acquainted with the




,

,

Agriculture Commerce and Manufactures.

481

history of the commercial part of the world. The principal difficulty on
thp subject is, to ascertain when the interference of government is necessary
or proper, and to what extent its regulations may be justly applied. There
would not often, if ever, be an occasion for such interference and regulation,
if some one nation did not first aim at a monopoly, or an exclusive benefit to
itself, from mere views of interest and policy. No government has pushed
the policy of restricting and regulating trade farther than the British. Yet
many statesmen of that nation have been opposed to the system in theory,
and have expressed a .wish that it might be done away, or much mollified.
In 1819, Lord Castlereagh, the premier, said in the House of Commons,
“ that the true interest of every country was, to throw wide open its ports to
the unrestrained commerce of all other countries.” Many were surprised
at the declaration, for it was very different from the uniform doctrine and
practice of Great Britain. Yet nothing but an artificial state of society,
and previous long established regulations, could justly excite opposition to
the opinion. Then, indeed, another nation may consider itself obliged to
resort to restrictions, or to severe regulations, in self defence, or to prevent the
disadvantages to its subjects arising from the restrictive monopolizing policy
of such nation, with which it had commercial intercourse. In such cases,
governments may properly and ought to adopt countervailing measures for
the benefit of its subjects.
Prohibitory regulations by governments, designed for the special benefit of
individuals, or of banking or manufacturing companies, or of a particular
class of citizens, and without ultimate and chief regard to the welfare of the
whole people, are manifestly improper, and cannot be justified. But the case
assumes altogether a different character, and is proper and commendable,
when the object is the general good—the permanent advantage of the nation.
Then, the inequality of benefits which may result, is incidental to the system
or policy adopted, and not intended. It arises from the superior enterprise
and industry of individuals, or from what is often called chance, or good for­
tune, that certain individuals had chosen the pursuit or business which the
government finds necessary to encourage for the prosperity of the whole na­
tion. This consideration affords a sufficient reason for protecting the inte­
rests of commerce and navigation, at all times, so far as can be done without
oppression, or taxes on individuals not engaged in such pursuits. It is also a
justification of the policy of protecting domestic manufactures, with a similar
limit or qualification. And for the same reason, may government extend
favor and encouragement to agriculture, the chief source of the comfort and
prosperity of a nation.
It is with such views, and with such limitations, that the favor and aid of
government are granted to particular branches of business; and that it should
do this for the purposes of national prosperity, will not be doubted by the in­
telligent and patriotic citizen. If a small portion of the community suffers
by such legislation, or rather if some are less benefited by it than others are,
this is no valid objection to the theory, or to the policy of adopting it.
This subject has been often presented in the national legislature, and the
question decided by large majorities in favor of regulating trade with foreign
countries, for the protection and advancement of domestic manufactures of
various kinds. The question has been agitated chiefly with reference to
cotton and woollen goods, and to the propriety, in a national view, of affording
encouragement and aid to such manufactures, though all other works of in­
genuity and utility have also received the protection of the government.
V O L . i. — n o . vi.
61




482

The Comparative Importance of

Commerce and navigation were the first objects of attention by the na­
tional government; not so much, surely, for the benefit of those directly en­
gaged in those pursuits, as for the prosperity of the whole country, and for
replenishing the public treasury. The embarrassments and irregularity
attending our foreign commercial intercourse, led to the adoption of the fede­
ral constitution ; and to raise a revenue to meet the demands of the public
creditors, without resorting to direct taxation, always unpopular and often
odious, the congress looked chiefly to commerce, its regulation, therefore,
was an imperious duty, and special legislation was necessary on the subject.
W hile the government and the United States derived immense advantages
from it, it was but reasonable and just to afford it protection. Hence the
discriminating duties between tonnage on vessels of the United States, and
those of foreign countries, and sometimes the employment of a naval force
to defend maritime rights and property. W ith similar views, and for similar
purposes—the general welfare of the country—domestic manufactures were
early encouraged, and the people indirectly taxed for their support, by high
duties on such articles imported into the United States, as were here produced
or manufactured. Had not this policy been early adopted, the country would
now be comparatively poor, unprosperous, and dependent on foreign nations,
to the great privation and detriment of the people. But the protection thu3
given by government to domestic manufactures, may be extended to an un­
reasonable degree; and the agricultural and commercial part of the commu­
nity thought it was unduly increased by the act of congress of 1828, and that
an inequality was the result of the system between the manufacturers of cot­
ton and woollen goods, and other great branches or departments of business.
The only question with impartial and intelligent men was, as to the degree
of favor to be granted to these manufactures. For whenever it was afforded
beyond a certain point, it was oppressive to the majority, and beneficial only
to those engaged in such pursuits. The compromise act of 1836, grew out
of the opposition to the high tariff on imports previously laid, and was gene­
rally acceptable to the people of the United States.
The important question which here presents itself is, whether the degree
of protection afforded to manufactures by the federal government, has not
had an unfavorable influence on the interests of agriculture. Has not a dis­
proportionate amount of labor and capital been bestowed on manufactures,
when the agricultural resources of the country are considered, and the ad­
vantages of an extensive cultivation of the soil duly estimated?
It is readily granted, that an increase of domestic manufactures, to keep
pace with the growth of the country, is good policy. Where there are many
persons employed in manufactures, the fruits of the husbandman’s labors
will find a ready market and a higher price. But here may be an excess.
If, instead of cultivating the earth, still greater numbers devote their labors
to manufactures, the products of agriculture will not be sufficient for the
wants and comfort of the people; and the advanced prices of necessary arti­
cles of living will prove oppressive to those who are obliged to purchase
them. The manufacturer may be well able to give the higher price, because
his profits are greater. But those in other classes of society, and mechanics
of other professions, are burdened, without means to support or remedy the
evil.
While, then, due protection is afforded by government to commerce and
navigation, and also to domestic manufactures, the interests of agriculture
should not be depressed nor neglected ; and why should not the latter be fa­




Agriculture, Commerce, and Manufactures.

483

vored by the general government, as well as the two former 1 That our coun­
try is susceptible of immense advances in agriculture, of very great progress
both in the quantity and kind of products from the soil, no one can doubt.
And it is believed that congress is constitutionally competent to aid and en­
courage agricultural pursuits as well as manufactures; having power “ to
promote the general welfare, and the progress of useful arts.” Agricul­
ture is truly an art or science as much as manufactures, and discoveries or
improvements may be made in the former equally with inventions in mecha­
nics. Agriculture has generally been admitted to be the most necessary of
all occupations or pursuits. It is, indeed, essential to the comfort and wel­
fare of mankind. The three great departments or branches of human labor
are agriculture, manufactures, and commerce; but agriculture has the pri­
ority. As men become civilized, the two last are important, and will be en­
couraged as society becomes improved. W hat is ornamental and convenient,
will be added to what is necessary.
If agriculture be capable of great advances and improvement, then is it
justly worthy of the aid of government. All nations have acknowledged
this, and acted in some measure on the conviction. That eminent statesman,
Governor De Witt Clinton, said in his public message to the legislature of
New York, in 1819, “ that agriculture was the most important of all arts,
and the most useful of all sciences, and deserves direct encouragement of the
states. It is the foundation of wealth, of power, and prosperity, and should
be encouraged as well as schools, or internal improvements of any kind.”
He recommended a board of agriculture to be appointed by the government
of the state. The attention of the legislature of Massachusetts has long been
turned to this object. Large sums have been granted, for many years, to
agricultural county societies, and to a state society, for the improvement of
the soil, the cattle, etc., by the laborious yeomanry of the commonwealth.
The bounty on wheat, by several of the states, is a wise measure, and has
produced happy effects. And why should not the federal government lend
its aid to the same objects? W hy not appropriate the proceeds of the sales
of a certain portion of public lands for this purpose ? The high rate of
duties on imported articles and goods was designed and operated as a bounty
upon domestic manufactures; and these have added to the prosperity of the
country. But we do not wish to be a manufacturing people for the rest of
the world. All which is needed for public wealth and general comfort, is
such a measure as to prevent our entire or chief dependance on other na­
tions, and a portion to export in exchange for articles from other countries,
which will add to the real enjoyment or ornament of society. We had bet­
ter have our workshops and factories in Europe, as Mr. Jefferson once said,
than have our rich and fertile soil, a mere location for artificial products for
the rest of the world. A great and chief employment should be agriculture.
It is favorable to health, and morals, and to republican liberty. And where
one man or woman is now thus employed, there had better be ten. Where
one bushel of wheat is now raised, there might and ought be ten. W e had
better raise grain for exporting, than cloths. The increase of agriculture
will not prove detrimental to commerce; nor indeed, necessarily, to manufac­
ture. But is it not worthy of inquiry, whether less investment in manufac­
turing establishments, and fewer hands employed in them, and more in agri­
culture, would not be for the permanent prosperity of the nation, and much
more favorable to morals, and therefore, to the peace and stability of our
republic ? Let manufactures be supported, and even extended, as the coun­




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Landlords and Tenants.

try increases in population ; but let them not be considered the highest object,
or worthy of the greatest anxiety to be enlarged.
The soil of a great part of the United States is favorable to agricultural
pursuits, and great improvements may be yet made in the manner of cultiva­
tion, and the products to be raised. Most parts, even of the New England
states, might be made to produce double and treble its present amount and
value. Some states might easily increase their products seven fold. And
we need not fear a surplusage. Europe will afford a market. England
and France, some years, may stand in need of ten times the amount which
we now usually export there.
Great Britain is as much indebted for her prosperity and wealth to agri­
culture, as to her commerce and manufacture; and the government there
has long given protection to the interests of agriculture. W e do not wish
to have the agricultural interests predominate, certainly not to be cherished
to the injury or diminution of manufactures and navigation. But the farm­
ing interests seem not to have the high estimation and comparative value
which they deserve in such a country as this. These interests have been too
much neglected by the government; and the attention of public spirited
men is therefore invoked to the subject. If the federal government cannot
agree to afford aid, or in what particular way to give it, let it furnish funds
to each state for the purpose, and leave it with the legislatures of the several
states to appropriate it in such manner as shall be considered most useful to
the whole people. W e advocate not the policy of cramping commerce or
manufactures; we plead only for a share of attention to agriculture, corres­
ponding to its vast importance and essential value.

A rt . IV.— L A N D L O R D S A N D T E N A N T S .
T he rights and privileges which the law confers upon landlords, and the
heavy obligations and liabilities it imposes upon tenants, are considerations
of the deepest importance to those upon whom these vastly disproportionate
responsibilities devolve.

Under our republican institutions, there is no class of men who are so
abundantly and amply able to sustain themselves, their families, and their
fortunes, unprejudiced and uninjured, as the landholders, and yet they are
the very persons whom the law delights in selecting as its especial favorites,
and who are made the recipients of a profuse legal bounty, which flows in
no other direction, and favors with its beneficial influence no other portion of
community.
W hen we reflect upon the immense risks to which the property and for­
tunes of the merchant are exposed, when we view the uncertainty and change
attendant upon the varied and extensive operations in which he is engaged,
and take into consideration the diversified shades of human character, in
which, whether light or dark, he is often compelled, in the course of his
various dealings, to repose confidence and trust, we are impelled by the
strongest feelings which justice and morality can awaken in our natures, to
acknowledge that he whose whole substance is often exposed to the destruc­
tive action of the elements which hover around mercantile adventure, is
equally entitled to the fostering protection of our enlightened legislation, as




Landlords and Tenants.

485

the individual whose fortunes are safely invested, and their rich interest per­
manently secured, with the earth itself as an everlasting bond. But however
much it may be deemed repugnant to the genius of our institutions, the pro­
fessed wisdom and liberality of our republican legislation, and the assumed
equality of our laws, it is equally true that the holder of real estate is per­
mitted to enjoy many highly important privileges and benefits, in which the
rest of society are not allowed to participate. Upon what principle of mo­
rality, justice, or even expediency, this glaring partiality evinced by our
laws is justified, it is impossible to determine; and yet this violation of the
plainest and most obvious rules of natural and inalienable right, is continued
and perpetuated without inspiring in the minds of a suffering community
the smallest portion of that indignation, which would be aroused and called
into hostile action to any other measure, embodying but half the tyranny
which centres in this branch of our jurisprudence.
The most powerful and effectual weapon which the landlord wields, is the
instrument of distress; and through its influence he is morally certain of
obtaining his rent, which misnamed justice permits him in this manner to
acquire. In effecting his purpose, this weapon is in his hands a two-edged
sword, for he may not only deprive the family of his unfortunate tenant of
the last article of property which the law allows him to take, and turn his
victims homeless and penniless away; but the innocent neighbor, who from
motives of kindness and benevolence lends his friend articles of furniture, for
the purpose of enabling his family to enjoy the comforts and conveniences of
civilized life, is liable, under our existing laws, to pay dearly for his good
nature, by having his property taken to swell the catalogue of a landlord’s
riches. This summary mode which the law allows a landlord to adopt, for
the purpose of securing his debt, is rightly called a distress. It was correctly
christened at its birth, and from the cradled child to its giant manhood, no
discredit has been suffered to tarnish its name.
From the remotest age in which this agent of the law has been used, down
to the present time, it has been the widow’s curse, the orphan’s fear, and the
fruitful source of misery and wretchedness. It sprung from a barbarous age,
where the rich and the powerful military lord prescribed unequal and harsh
laws for governing the humble and weak tenants of his wide domain. It origi­
nated in despotism, and arose out of a system of feudal tenures, whose every
feature has been annihilated and destroyed, save this last lingering relic of
tyrannical power.
The superior privileges which landlords enjoy over any other class of
creditors, are a part of that ancient prerogative which the domineering lords
of the soil exercised during the dark ages on the continent of Europe, and
which was conferred upon the English and Norman barons by William the
Conqueror, after he had subdued England.
Under this system of tenures, as they formerly existed, many degrading
services were performed by the tenant, of the most menial character, which
were exacted by the landlord under color of the arbitrary and despotic
power vested in him by oppressive legislation. As the poorer classes ad­
vanced in a knowledge and proper appreciation of their civil rights, a portion
of these tyrannical impositions were shaken off, and much of the degrada­
tion attached to the character of a tenant was abolished. The personal
services and attendance upon the owner of the soil, which formed a portion
of the disagreeable return rendered by the tenant for his occupation of the
land, was superseded by an entire payment of money in their stead; and




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Landlords and Tenants.

many of the revolting features, which marked the distinction between the
rights of landlords and tenants, were annihilated. And how the right to dis­
tress, which was a natural incident to these ancient tenures, and has ever
been a powerful engine of oppression in the hands of the landlord, could
have escaped, unimpaired, the many mighty reforms which enlightened
legislation has introduced, is indeed remarkable, and, shows with conclusive
force the immense influence which the owner of the soil has always exer­
cised in preserving this distinctive mark of his superior power.
This right of the landlord to distrain the goods of his tenant for rent, in­
stead of having been narrowed and restricted by modern legislative enact­
ments, has been extended and enlarged. And the great superiority of this
remedy over that possessed by any other class of creditors, even as it existed
at common law, has been still farther increased by statutory provisions.
It cannot be denied, that all laws should be so framed as to confer upon
every member of society equal rights and privileges, and when the legisla­
ture of any state secures to one portion of its citizens superior franchises, while
it denies their enjoyment to others, it violates the plainest and most obvious
principles of universal justice, and commits a palpable outrage upon the
liberties of the people.
When we examine the laws of this state governing the relationship exist­
ing between landlord and tenant, and view the notorious privileges possessed
by the former over those enjoyed by any other creditor, we cannot fail to be
deeply impressed with the important necessity of a radical change in this
vital part of our jurisprudence. The laws, in this respect, operate with pecu­
liar hardship upon the whole community, with the exception of that portion
for whose benefit they are designed ; and the interest of the humble and in­
dustrious citizen is sacrificed, and the property of his debtor taken, to enrich
the haughty and opulent landholder. Almost every species of property
found in the possession of the tenant, whether belonging to him or to any
other person, may be taken for rent; and no individual is safe in depositing
any valuable article with another, until he is satisfied by inquiry, that no
rent is due upon the premises where his property is placed. It is true, that
there are some exceptions to this rigorous rule, as in case of personal property
deposited with the tenant after obtaining the landlord’s consent; and also,
where property accidentally gets strayed upon the demised premises, or
where goods are deposited with a tavern keeper or in any warehouse in the
usual course of business, or where an article is left with a mechanic for the
purpose of being repaired, and also the property of boarders in taverns and
boarding houses; in either of which cases, the landlord cannot distrain; but
when property is lent, although but for a day, and is found upon the pre­
mises which are rented, the right to distrain it vests immediately in the land­
lord, and the innocent lender must suffer for his generosity and kindness.
Can there be any reasonable ground for extending this right of distress so
generally and universally? Is there any justice in declaring, that because
one person loans to another a horse or a carriage to be used for one, two, or
three days, that a grasping landlord shall be permitted to take advantage of
the short time it remains upon his premises, and sell it to satisfy rent which
has been three months in accruing ? Is this extending the protecting mantle
of the laws equally over all, and guarantying to society the uniform enjoy­
ment of beneficial privileges ? If such is the tendency of this kind of legisla­
tion, we must acknowledge our utter inability to view it in any other light
than that of tyranny and oppression. The advocate and apologist for this




Landlords and Tenants.

487

glaring partiality in laws, which confer upon the landlord such unusual and
arbitrary rights, meets us with the argument, that unless property in the situ­
ation we have mentioned could be distrained, multiplied frauds would be
practised upon the landlord, and that his premises would be incumbered
with goods, for storing which he could get no compensation. This ob­
jection is easily obviated: for, if we proceed upon the principle that property
is liable to distress in proportion to the time and extent which it occupies the
premises, then are we bound to acknowledge that the lien of the landlord
upon such property can be extended no farther than is sufficient to satisfy
him for the time it has remained in the possession of his tenant, and the
amount which he could sell would be only commensurate with his lien.
As the law now stands, if the landlord is fearful that the tenant will not be
able to pay his rent, he has presented before him the strongest possible in­
ducements to engage him in enticing the unsuspecting to place their pro­
perty in such a situation, as to enable him to reach it by using the means
which the law justifies ; and when once he has seized it within his grasp,
the advantage which he has taken of his own wrong is legalized, and he
may securely enjoy that of which he has inequitably deprived an innocent
person. W e are far from saying that the landlord is often guilty of disho­
nestly using the advantages with which the laws have clothed him ; but
whether he is so or is not, can be of little importance, as their impropriety in
opening so wide a door for committing fraud and oppression is equally ap­
parent, and the necessity of reform equally imperative.
Another revolting feature presented by this branch of our jurisprudence,
is the immense hardship which often falls with great severity upon the under
tenant; and here again is discovered the arbitrary prerogative which the
landlord is permitted to wield. Let us suppose the case of a person who
hires an entire building at a large rent, and underlets a small part of it. The
landlord, at the time of leasing the premises, supposes his lessee perfectly
responsible, and looks to him alone for payment of the rent, and in judging of
his pecuniary means, he has greater facilities, and takes more trouble for the
purpose of determining his solvency, than his sub-tenant, to whom the respon­
sibility of the lessee is immaterial; when the rent becomes due, the lessee is
unable to pay it, and the under tenant, having property upon the premises, is
compelled to respond to the full amount due upon the whole building. This
is a case of very common occurrence, and is highly unjust and inequitable ;
and the law, in obliging the under tenant to pay a sum so exorbitantly beyond
that for which he was originally liable, is extremely tyrannical, punishing
the innocent sub-tenant for the fault of the landlord in not taking from his
lessee the requisite security; and as the under tenant is bound to pay his rent
to the lessee, and cannot protect himself from distress by paying it to the
landlord, he is not only compelled to respond in the full sum due upon the
whole premises, but a portion of it is in this manner twice extorted from
him. It is impossible to imagine any law more directly in violation of the
broad principles of morality and justice, than the one here presented. It
countenances and justifies the most palpable wrong, and is fraught with cru­
elty and oppression. The rights and privileges conferred upon the landlord
in this respect, and the disabilities and hardships imposed upon the tenant,
can hardly be paralleled, even in the despotic countries on the continent of
Europe. The laws of France and Spain upon this subject, are much milder
than in this enlightened and republican state. In France, the landlord can
only recover from the under tenant the amount which he was to pay to the




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Landlords and Tenants.

lessee. The principles of universal justice are here applied, notwithstand­
ing the weight of monarchical and hereditary influence which prevails; and
the rules of equity and right, which are considered applicable to ordinary
cases of debtor and creditor, govern the relationship existing between land­
lord and tenant. By the laws of France and Spain, if the crops of the tenant
partially or entirely fail, whether occasioned by war, civil commotion, or an
unfavorable season, the landlord is bound to remit a proportionate quantity
of the ren t; and in these countries, if premises are rented, and the tenant,
without any fault on his part, is deprived of their unrestricted enjoyment,
the law compels the landlord to remit an equitable proportion of the rent
originally reserved; and in Spain, it is doubtful whether beasts of the plough,
and implements of husbandry, which are absolutely necessary to enable the
tenant to prosecute his farming operations, can be distrained. These laws
of the countries we have mentioned, are highly beneficial to the interests of
the tenant, and cannot in the least prejudice the just rights of the landlord.
They are founded upon the broad principles of natural justice, and are
governed by sound and equitable rules. But in this republican land of
boasted equality, the laws, in this respect, are based upon a very different
foundation: it is here entirely immaterial whether the crops of the tenant are
abundant, and rich returns are given for his toil, or whether they are blasted
and his golden prospects entirely annihilated and destroyed, for he is still
bound to pay his rent to the uttermost farthing. The law, in this case,
makes him no allowance of equity, but compels him to bear alone a calamity
which it was beyond his power to avert—and which would have fallen with
equal severity upon the landlord, if he had been in possession of the soil, in­
stead of his unfortunate tenant. If a person hires a building, and it subse­
quently becomes dilapidated, and out of repair, so as to prevent him from its
beneficial use and enjoyment, he must, notwithstanding he has received little
if any benefit from its possession, pay the full ren t; and wdiere the landlord,
in the lease, covenants to repair the demised premises, and put them in per­
fect order, and the tenant, upon the faith of such agreement, enters into pos­
session, he cannot resist payment of the rent when it becomes due, on the
ground that the landlord has not performed his covenant; and although by
this want of good faith on the part of the landlord, the tenant may have been
deprived of almost every benefit which the enjoyment of the premises would
otherwise have conferred upon him, yet the landlord may distrain for the entire
rent due, and the goods of the tenant can be taken, and his property sacrificed,
for purposes of arbitrary injustice and palpable wrong. If the law will
permit the landlord to resort to a distress for the collection of his rent, it
should at least place some checks upon his using this extraordinary power
to the gross injury of his tenant; and when the landlord, by neglecting to
perform an agreement on his part, deprives the tenant of the beneficial use
of premises which he ought to be permitted to enjoy, the principles of stern
justice imperatively demand that the right of distress should be taken from
him, and his facilities for the recovery of the amount to which he is entitled,
placed upon the same foundation with those enjoyed by any other creditor.
But no provision of this kind exists, and the landlord may collect his rent by
this summary mode, although the damasre sustained by the tenant, on account
of the landlord’s neglect to repair, should be more than commensurate with
the amount due. In this case, the tenant can only sue the landlord upon
his covenant by the ordinary slow course of law; no extraordinary privi­
leges are conferred upon him, and no peculiar facilities are afforded him,




Landlords and Tenants.

489

but he is left unprotected, while his goods are seized and sold to glut the
rapacity of a landlord, under circumstances which outrage every principle
of common justice. We recollect a case which occurred in this city not
long since, under circumstances similar to those we have mentioned. A
poor tenant had hired a small store, for the purpose of carrying on his ordi­
nary business, and as it was much out of repair, the landlord entered into an
agreement to put it in good order, and for this purpose to bestow upon it
every necessary expense. The tenant relying upon this agreement, proceed­
ing as it did from a man of immense wealth, and believing that the landlord
would honorably perform every stipulation on his part, removed his goods
into the store before the necessary repairs were expended. He subsequently
made repeated application to the landlord, for the purpose of inducing him
to comply with the terms of his agreement, but without success; and as the
building was in a state of too much dilapidation to be used for the purpose
which the tenant originally intended, he was of course deprived of every
pecuniary advantage, which under other circumstances his business would
have afforded him. When the rent for the first quarter became due, the
landlord demanded it, and was informed by the tenant that as he had not
performed his agreement in repairing the premises, and as no benefit had
been derived from their occupation, the rent ought not to be paid. The
landlord coolly replied, that if he had violated bis covenant, the law was
open, and the remedy of the tenant plain; but that unless every farthing of
rent was voluntarily paid, a distress would immediately effect its collection.
The tenant, upon ascertaining by legal advice that the rent could in this
manner be extorted from him, and that the landlord’s conduct could not be
set up as a defence against its recovery, was compelled to pay the full
amount claimed. And being fearful that if he attempted to obtain redress,
by prosecuting the landlord upon his agreement, the ends of justice would
be substantially defeated by the superior wealth and influence which his ad­
versary could command, he abandoned the thought of securing his just and
equitable rights, and paid to his grasping landlord the full rent of the pre­
mises for the entire year, of enjoying which he had been thus unjustly
deprived.
This is but one of the numerous instances in which the laws, by affording
peculiar remedies to the landlord, and in clothing him with extraordinary
facilities for the purpose of obtaining his rent, enables him at once to secure
every right he may choose to claim, and in this manner to outrage the prin­
ciples of common justice, and trample upon the equitable rights of his unfor­
tunate tenant. If there are subsisting unliquidated accounts existing between
the landlord and tenant, upon a settlement of which, the former would be
found justly indebted to the latter, the right of distress still exists, and the
goods of the tenant may be distrained and sold, without affording him the
least opportunity to offset his claims in satisfaction of the demand for which
they are seized. It is impossible to examine the laws we are considering,
without at once perceiving that their sole tendency and effect, is the security
and advantage of the landlord. The rights, the interests, and the welfare of
the tenant, are forgotten; and in this branch of our jurisprudence, more
than any other, do we discover gross and palpable defects, and the most
glaring injustice.
There is yet another extraordinary feature in the laws of this state, gua­
rantying to the landlord an exclusive and important right, which is more
remarkable for its abuse of justice than any we have mentioned. It is the
von. x. — no. vi.
62




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Landlords and Tenants.

priority he enjoys over any other creditor of his tenant’s, in securing his full
rent for the preceding year: and he is entitled to this amount, if in obtaining
it the last article of property belonging to his tenant is sold, and other credi­
tors deprived of the least participation in the proceeds. If the claim of the
landlord is fraught with the most gross injustice, and the right of the credi­
tor is founded upon the purest principles of equity, the prerogative of the
former prevails, and he grasps in security his entire demand, while the un­
fortunate creditor is left without a farthing. It is almost impossible to con­
ceive the vast amount of oppression and foul wrong which flows from this
inequitable provision of our laws. If a debtor is sued by his creditor, and
judgment is recovered against him, and the officer who levies the execution
is enabled to reach property which the debtor had concealed, or removed,
and placed beyond the landlord’s power, the latter, by making a simple affi­
davit that rent is due him, is entitled to receive from the officer a sum suffi­
cient to satisfy his entire claim, although it should be for the whole of the
preceding year ; and the creditor, after having expended large sums in ob­
taining his judgment, and in his subsequent proceedings to gain possession
of the debtor’s property, is suddenly deprived, by this intervention of the
landlord, of every benefit which he would otherwise derive; and the former
deliberately grasps what he never could have acquired by a warrant of dis­
tress, and in pocketing his legalized plunder, commits an act in violation of
the plainest rules of morality and justice. How often do we see the mer­
chant, after trusting his debtor for large quantities of goods, relying upon
their ultimate advantageous sale for his reimbursement, disappointed in his
reasonable anticipations of payment, by this exercise of a landlord’s tyranni­
cal prerogative. He has perhaps received nothing whatever from his
debtor, and the very property with which he has trusted him goes in satisfy­
ing the last farthing of a landlord’s claim; no remedy is allowed him, and
even the poor right of enjoying a portion of that which is morally and
equitably his own is denied. The demand of another is suffered to pre­
vail over the strong considerations of justice which support his claim, and
he is stripped of the property which his care, and toil, and persevering in­
dustry, have acquired, that it may go to enrich the favored landholder.
How much of wrong and oppression are embodied in this branch of our
jurisprudence, and what acts of harsh injustice does it tolerate and legalize;
and yet it is permitted to remain a dark blot upon our statute books, and no
efforts are made to annihilate this last solitary curse, which had its birth in
the dark ages of feudal power. The laws of most states in the union, are
much milder upon the subject than our own, and many of the more odious
provisions existing in favor of the landlord, have been swept away ; and in
Connecticut, the right of distress has been taken from him. But in this
state, where an immense portion of the wealth of our citizens consists in
personal property, and where a large part of our community is composed of
merchants, whose wealth, intelligence, and influence, deservedly entitle them
to an equal proportion of the beneficial rights and privileges which result
from liberal and enlightened legislation, we discover no ameliorating
change in this department of our jurisprudence. Not only is the common
law, as it formerly existed, still continued in force, and its stern, technical
rules perpetuated, but every successive act of our legislature has tended still
farther to increase the unjust powers and privileges of the landlord, and to
deprive the tenant of some of the few equitable and natural rights which he
formerly enjoyed. A few years since, and the only distinctive remedy




Insurance.

491

which marked the landlord’s superior power in collecting his rent, over that
possessed by any other creditor, was the instrument of distress, and it was
left to modern legislation to introduce the oppressive priority he now enjoys.
New rights have been conferred upon him, which he formerly could not
claim ; and the arbitrary manner in which they are used, shows with irre­
sistible force how unwise, impolitic, and unjust, was their introduction.
Every citizen who is desirous of securing the general welfare of society, by
the introduction of a wise, salutary, and just system of laws, cannot fail to
be impressed with the important necessity which exists for at once destroy­
ing the odious distinction prevailing throughout our jurisprudence in favor
of the landholder, whose rights, remedies, and liabilities, should be governed
by the same rules of universal justice which control those of every other
member of community.

INSURANCE.
A rt . V. — R A T E S OF P R E M IU M F O R M A R IN E IN SU R A N C E.
H itherto the computation of premiums of insurance on marine risks
has been made on no systematic or regular principles, but on the loose, gene­
ral, and indefinite impressions of those who make the contracts— impressions
often founded on a very limited experience, as a merchant, a shipmaster, or
as an insurer.

Contracts for insurance on lives are made from tables formed on the results
of experience—from bills of mortality for long periods of time. From these
documents, it is ascertained that a certain proportion or rate per cent, of a
community in a certain location, have died in a year. That this proportion
is subject to certain degrees of variation at the different periods of life. That
it is also liable to be affected by the various occupations and course of life of
individuals. And as it has been found, that the results of one period have
been like the results of another period, in times past, it is inferred that they
will continue to be so in future time.
In like manner, the business of marine insurance is susceptible of analysis
and systematic arrangement. But it is to be regretted, that no records of
facts have been kept to furnish a basis for the construction of tables; unfor­
tunately, there are no bills of mortality for ships, and there exists no data
from which the value of a risk for a given voyage can be computed. Pre­
miums are, of necessity, fixed as the experience or inexperience of the con­
tracting parties may dictate, without any standard by which to test their accu­
racy. Hence we find them fluctuating and various, for the same voyages,
differing one half, and often more, without any good reason. Some voyages
are charged at too high rates, and others at too low rates; but which class
of risks it is, that is charged too high, and which too low, is unknown, and
opinions on the subject would be very different. If, on the whole, the insu­
rer get sufficient to cover his losses, and leave him a fair remuneration for
his risk and trouble, he does not concern himself, to know on which class
he gained, nor on which he lost his money; and the insured rests satisfied
in like ignorance.
When a government imposes a tax on a community, the attention of its




492

.

Insurance.

members is immediately directed to the matter, to know if it bears equally,
and on all in due proportion.
The premium of insurance is no less a tax on the consumers than an im­
post duty; and the community is equally interested to see that it bears equally
and alike on the several branches of commerce.
If arrangements could be made by insurers to class their risks, and keep
each class separate, so as to obtain the results of experience for a long period
of years, much would be done towards the attainment of the object in view;
and although there would still, and must always remain, much for the judg­
ment to decide, there would be fewer chances of error than there are now.
The field of knowledge would be enlarged—the field of conjecture would
be diminished. The consequence would be, that the investments of capital
in insurance stocks would be safer, the profits more uniform, and the gra­
dations of premium more just and equal.
In no business of the same magnitude, have those who conduct it so little
of the benefits and advantages of experience to aid them. No record of the
experience of their predecessors is to be found, or if they exist, they exist
only in a crude, undigested, unavailable form. The transactions of all past
time are to them almost as if they had never been; a loose, indefinite history
or tradition is all that remains of them.
Impressed with these views, and with the importance of the subject, the
insurance companies of Boston have established an office under the charge
of Charles Pierson, Esq., a gentleman every way qualified for the purpose,
to collect such facts as shall tend to the attainment of the data requisite for the
formation of tables of premiums on more certain and satisfactory principles
than the mercantile community now have; and it is proposed to publish,
from time to time, such of the results of his labors as may be deemed useful
to the merchant and insurer, in the formation of tariffs of premium for risks
against the perils of the seas and fire. Those of capture must of necessity
be decided by the judgment of the parties.
It must be kept in view, that the results of a short period, or a small amount
of business, would not furnish data on which it would be safe to act, or to
form opinions. The experience of a course of years, and a large number
and amount of transactions, are necessary to form a basis on which it would
be safe to make contracts. The office has been established but a few months,
but in order to give some idea of the course of procedure, and in the hope that
others who have the means may be induced to co-operate in the labor, which
is very great, of obtaining the facts neeessary to be known, the following
statements are now given to the public. It will be perceived that they in­
clude insurance on vessels only; that they are divided into three classes—
ships, brigs, and schooners; that they include only vessels insured on tim e;
no vessels insured for specific voyages being included. The result shows
that on fourteen millions and upwards of risks, the insurers lost upwards of
one hundred and forty-four thousand dollars over and above the amount of
premiums received.




Rates o f Premium for Marine Insurance.

493

Amount o f W ritings and Losses, on Vessels on Time, in the years 1830
and 1831, dqne at fifteen Offices.
Av. Rate
Av. Rate
Av. Rale
VESSELS. Amount of Amount of per ct. of Return per ct. R. Additional p. ct. Ad.
Writings. Premiums.
Premiums.
Premium.
Prem.
Prem.
Prem.
Ships on
tim e___ 4,237,234 218,651 63
B rigs........

3,454,300 203,194 91

6,255 55

5- Tooo

234

3,377 91

055
1000
097
1000

2,772 89

1000
181
1000

1,499 40

1000

366 79

045
1000

17,665 20

208
1000

6,517 59

076
1000

187

441

800,733 59,585 72

Tooo

8,492,337 481,432 26

**■ Tooo

Schooners.

9,910 25

1000
882

669

Amount o f Writings and Losses—( continued.)
LOSSES.

General Ave­ Gen. Av.
Loss,
rage.
per cent.

Partial.

345

14,600 46

524
600

1000

37,512 98

1000

259
1- Toiio
581

136,061 66

89,274 92

1000

4,807 8

Total.

53,352 5

1000

18,105 44

Partial
Loss,
per cent.

24,763 47

442

167,390 44

Per Cent of
Losses,
Total Gen. Average
Loss, Partial, and
per cent.
Total.

8,5

1000

133,597 33

3 —
m_
*5’ 1000

1000

71,229 69

ft —
1000

12 —
1000

971
1* Tooo

340,888 68

014

4-1000

427
6- Tooo

Q

**■1000
976
6* wo

Amount of Writings and Losses—( continued.)
Gain.

RECAPITULATION.

Loss.

Ships—Amt. Prem. p. ct. 5,161
do.

65

Ret. Prem.
Losses

234
4,815

Add.

5,226
<•5,049
177

1^5 per ct. gam,

Brigs —Prem. per ct.
Add.

5,882
97

Return
Losses

181
6,976

7,500 10

5,979
7,157

17S

1. MS per ct. loss.,

40,660 42

Schooners—Prem . p. ct. 7,441
Add.
Return
Losses

45
--------- 7,486
187
12,587
------- -12,774

per ct. loss.

G a i n .... 7,500 10
L o s s . .. . 83,007 65
$75,507 55 excess of Loss over the Premiums.




42,347 23
$7,500 loj $83,007 65

494

Insurance.

W ritings and Losses on Vessels on Time, from 1817 to 1834, inclusive,
at one Office.

VESSELS.

Ships on
tim e. . . . 1,700,068 89,990 30
B rigs........ 2,753,724 189,888 41
Schooners.

Av. Rate
per ct. of
Add’nal
Prems.

Av. Rate
Amount of Amount of Av. Rate Return per cl. of Additional
per
ct.
of
Writings. Premiums.
Premiums. Return Premiums.
Prem.
Prem.

1,183,424 87,629

29

5- loo
89

6* loo

J05

1

• ' 1000

5,637,216 367,507 72

^•Tuijo

520

6,096 81

358
6 . 1000

15,639 10

Ttob

8,726 46
30,462 37

109

1,851 16

1000

3,192 68

116
1000

1000

1,004 13

084
1000

540
1000

6,047 97

107
1000

567
737

Amount o f Writings and Losses—( continued.)
Amount o f Loss.

Excess o f Loss over
the Premiums.

7* lUiT

• 122,421 87

$36,677 22

100

187,950 4

10,508 5

ft —
°* 100

101,391 58

21,484 90

304
1000

411,763 49

Losses, per cent.
20

$68,670 17 loss.

Amount of Writings and Losses—( continued.)
Recapitulation— Ships, Brigs, and Schooners, from 1817 to 1834.
Amount of Premiums per cent......................................... 6,520
Additional
...........................................
107
--------- 6,627
Return Prem ium s...........................................
540
Losses
7,304
--------- 7,844
Excess of Loss over the Premiums




1 f il

’ 1000

68,670 17

495

Rates o f Premium, fo r Marine Insurance.

Recapitulation o f the above.
Av. Rate Return Rate per
Writings. Premiums. per ct. of Premiums. cent Ret.
Prem.
Prem.

VESSELS,

Ships, Brigs, and Schooners,
years 1831, 1832, in fifteen
Offices......................................
Ships, Brigs, and Schooners,
years 1817 to 1834, in one
Office........................................

669

8,492,337 481,432 26

17,665 20

5,637,216 367,507 72

520
6 . Tooo

30,462 37

14,129,553 848,939 98

6. 008

48,127 57

1000

208

540
llOU
340

Tooo

Recapitulation—( continued.)
Additional Ratep.ct.
Premiums. of Add.
Prem.

Losses, pei cent.

076

6,517 59

Tooo

6,047 97

1000

Excess o f Loss over the
Premiums.

427

6. looo

107

12,565 56

Amount of Loss.

515,792 10

$75,507 55

411,763 49

68,670 17

957,555 59

$144,177 72

304

7. Tooo

083

777

Tooo

6. Tooo

Recapitulation o f the Written Accounts.
Premiums, per cent............................................. 6,008
Additional
89
—----- 6,097
Return P re m iu m s,.............................................
340
Losses
6,777
--------- 7,117

1.

= 144 177 73

Excess of Loss over the Premiums
1000
No expenses of the offices are included in this estimate.

Do

N O T , L I K E A FO O L I S H M A R I N E R , ALW AYS C A L C U L A T E ON F A I R
.— Commerce, as well as life, has its auspicious ebbs and flows,

w ea th er

that baffle human sagacity, and defeat the most rational arrangement of sys­
tems, and all the calculations of ordinary prudence. Be prepared, therefore,
at all times, for commercial revulsions and financial difficulties, by which
thousands have been reduced to beggary, who before had rioted in opulence,
and thought they might bid defiance to misfortune.—Foster.




496

Insurance.

A r t . V I.—H IN T S TO T H E IN S U R E D ON T H E CONSTRUC­

T IO N OF M A R IN E P O L IC IE S.
I nsurance is so intimately connected with commerce, and springs so
naturally from maritime adventure, that it forms a subject of the deepest
interest to the merchant, and is well worthy the profound study of the
statesmen of every nation, in which commercial interests are known and
fostered. The utility and importance of this species of contract in a com­
mercial country is self-evident, and is so considered by the most distinguish­
ed writers upon commercial affairs. The millions of treasure which are
now cast upon the ocean, and sent to the remotest quarters of the earth,
exposed to the risks of the winds, the waves, and the frail structure in which
they are transported, would be unknown and unappreciated, but for the pro­
tecting influence of this maritime contract, which gives great security to the fortunes of private people, and by dividing among many that loss which
would ruin an individual, makes it fall easy upon the whole society. This
security tends greatly to the advancement of trade and navigation, for as the
risk of transporting goods and merchandise is diminished, men will be more
easily induced to engage in extensive foreign trade, to undertake hazardous
adventure, and to join in important undertakings; since their failure cannot
involve them, and their families, in those ruinous consequences which would
be the result in a country where insurances are unknown. It is improbable
to suppose that the citizens of any nation, would embark their fortunes in
enterprises fraught with so much risk as is incurred in mercantile adven­
ture, without the aid of this indemnifying contract; and foreign commerce
must necessarily be confined in its operations, and narrow in its influences,
without some remedy is afforded by which the enterprising merchant can
feel secure in ultimately obtaining at least a portion of those riches with
which his ship is freighted.
From the great importance of insurance in creating a spirit for foreign
adventure and mercantile enterprise, it is natural to suppose, that it was
early ingrafted into the system of maritime laws and regulations, which
prevailed in ancient periods of the w orld; but in looking back upon the
history of the ancient maritime states which have existed, we find that
insurance was unknown, and that it is comparatively of modern invention.
The origin of the contract is somewhat uncertain, and the honor of its intro­
duction has been claimed and insisted upon by rival nations, each eager to
acquire the distinction which the creation of so important an agent, for the
advancement of commercial enterprise and prosperity, would confer upon
the founder; and the time when this contract was invented is equally
involved in doubt and obscurity. But it is evident that wherever foreign
commerce was introduced, insurance must soon have followed as a neces­
sary and indispensable attendant, it being impossible to carry on any exten­
sive trade without this protection, especially in time of war. Some writers
have ascribed the origin of the contract of insurance to Claudius Cffisar, the
fifth Roman emperor; but if it originated at that time, it was but imperfectly
known and appreciated, and bore but a faint resemblance to the form it has
now assumed; and from the fact that we find it extremely difficult to deter­
mine whether such a contract then really existed, it must have been quite
ineffectual and seldom used. Other authorities have given the Rhodians




Hints on the Construction o f Marine Policies.

497

the credit of its invention, thus establishing a foundation for the idea enter­
tained by many, that the law of insurance had been incorporated into most
of the ancient codes of maritime jurisprudence. But it is extremely doubt­
ful whether this people entertained even the slightest idea of the contract of
insurance, as it exists at the present day. This country stood first among
the nations of antiquity, not only for the richness of its extended commerce
and the strength of its naval power, but it was here that the first legislators
of the sea flourished; and it was by this people that the most ancient system
of marine jurisprudence was promulgated, to which even the Romans them­
selves paid the greatest deference and respect, and which they adopted as
the guide of their conduct in naval affairs; and these laws not only formed
the rule of naval action to the ancient maritime states, but in reality have
been the basis of many important regulations now in force respecting navi­
gation and commerce; but notwithstanding the wisdom evinced in the crea­
tion and compilation of these laws, and the universality with which they
prevailed, nothing can be discovered from the fragments which have
reached us, to warrant the belief that these islanders were acquainted with
insurance as a mode of securing their property. It is true that the laws of
the Rhodians have descended to the present age in a very imperfect state,
and there may have been many provisions incorporated into their system
of jurisprudence, of which we are in ignorance; yet it is more than probable
that so important a feature in their marine regulations, would have been
transmitted to us, if any such had existed.
The states of ancient Greece, particularly Corinth and Athens, paid great
attention to the promotion of commercial knowledge, and to the creation of
a code of maritime laws calculated to encourage foreign adventure, and to
inspire their people with a spirit of mercantile enterprise: and the many
valuable and liberal laws which they originated relative to imports and
exports, and the contract of bargain and sale, the many privileges granted
to the mercantile portion of their citizens, and the appointment of judicial
officers to settle and adjust marine controversies, impress us with a very
favorable idea of their knowledge of the true principles of commerce; but
not the slightest information can be found in their history, which would lead
us to suppose that they were acquainted with insurance.
A glance at the commercial and maritime history of the Romans, is
sufficient to make it appear that they were equally ignorant of the contract
of insurance, as the nations of ancient Greece or the Rhodians; and from
the continued warfare in which they were engaged, it cannot be supposed
that they would pay as much attention to the perfection of a maritime code
of jurisprudence, as many of the countries existing around them.
From the best authorities that can he found, it is supposed that the con­
tract of insurance was first invented by the Lombards in the thirteenth
century; and as the Italians were at that time engaged in an extensive trade
with foreign countries, and carried on a rich traffic with India, it is but rea­
sonable to suppose that in order to support so extended a commerce, they
would introduce insurances into the system of their mercantile affairs. It
is true, that there is no positive and conclusive evidence, which would create
a foundation for the assertion, that they were the inventors of this kind of
contract; but it is certain that the knowledge of it came with them into the
different maritime states of Europe, in which parties of them settled; and
when we reflect that they were the merchants, bankers, and carriers of
Europe, it is not unreasonable to presume that they also led the way to the
n o . v i.— von. i.
63



498

Insurance.

establishment of a contract, which is so essential and important for the
creation and continuance of commercial prosperity. It is certain that the
Lombards were the first who introduced this contract into England; and a
clause is inserted in all policies of insurance made in that country, that the
policy shall be of as much force and effect, as any before made in Lombard
street, the place where these Italians are known to have first taken up their
residence.
After the introduction of this contract into England, a peculiar court was
erected for the purpose of determining all questions and controversies arising
out of policies of insurance; but it was soon abolished, and the adjudication
of this species of contract placed upon the same ground as any other written
instrument. The contract of insurance has, until recently, been but little
understood, and very few early cases can be found in which rules have been
settled, calculated to elucidate the principles bearing upon the construction
and effect which must be given to the policy; but more recently, numerous
and valuable decisions have been made, in which the law of insurance has
been ably considered and clearly laid down; and although some portions of
this branch of maritime law are still involved in doubt and uncertainty, yet
the leading and general principles which control this species of contract, are
now rendered sufficiently certain to enable the insured to determine what
he is bound to do, for the purpose of securing the protection and safety
which a policy of insurance is intended to confer.
It is of great importance to the merchant, that he should make himself
acquainted with the substantial parts necessary to be embraced in a contract
of this nature; and for the purpose of rendering this subject clear and intelli­
gible, the form, construction, and effect, of amarine policy of insurance, will
be considered.
Insurance is defined to be a contract, by which the insurer undertakes, in
consideration of a premium, to indemnify the person insured against certain
perils or losses, or against some particular event. The policy is the instru­
ment by which the contract of indemnity is effected, between the insurer and
the insured, and it may be valued or open, the only difference being, that in
the former the property insured is valued at prime cost at the time of execu­
ting the policy, and in the latter the value is not mentioned, but in case of
loss, must be proved by the party claiming under the policy. The essential
part of a policy of insurance does not differ from a bond of indemnity, or
guaranty of a debt, since the obligor, or guarantor, takes upon himself cer­
tain risks, to which the obligee, or creditor, would otherwise be exposed;
and although the liability of the insurer depends upon more numerous and
multiplied contingencies, than that resting upon the obligor and guarantor,
yet until something is done on the part of the insured, to vary the nature of
his rights, and alter or effect the responsibility of the insurer, the rules of law
which govern in the construction of ordinary sealed instruments, in cases of
obligors and guarantors, prevail with equal force in controlling a policy of
insurance.
A policy, when executed, is considered a sacred agreement, and of the
first credit; and when the signature of the underwriter is affixed, no altera­
tion can be made by either party without avoiding the contract; for as its
ultimate effect and bearing should be accurately known and perfectly appre­
ciated by both parties, permitting even the slightest alteration by either
would be opening a wide door to fraud, in a transaction which, from its
nature and the importance of the interests involved, should be free from the




H ints on the Construction o f Marine Policies.

499

least degree of doubt or embarrassment. The only mode by which an
alteration can be made in an instrument of this kind, where either party
refuses his assent, is by an application to the court of chancery, where it
must appear by undoubted evidence, that the party applying was mistaken
in the terms and effect of the policy, and that the correction of such mistake
cannot prejudice the rights of the insurer. From this, it is obvious that it
is of the first importance to the insured, that he should thoroughly under­
stand the nature and construction of an instrument which may involve
interests to a large amount, and which, unless fraud is proved to have been
committed on the part of the insurer, cannot be altered or varied in its ulti­
mate construction, as the intention of the parties is to be determined by the
instrument itself.
The leading and substantial parts of a marine insurance are, that the
underwriters cause the assured to he insured, in a certain sum, on skip,
cargo, freight, or profits, for a particular voyage or space of time, against
enumerated risks ; and in connexion with these, are introduced all the stipu­
lations, provisions, conditions, and warranties. There are various implied
conditions in every policy, which are of the highest importance to be
observed by the person obtaining it, and unless these conditions are strictly
complied with, the contract will be avoided. The assured is bound at the
time of procuring the policy, fully to disclose to the insurer every fact
which may materially alter or affect the nature of the risk incurred, and
which is presumed to rest exclusively within the knowledge of the insured,
unless it is embraced in some agreement in the instrument, or to which the
instrument refers; and when an insurance is effected upon a vessel, the
insured by the act of procuring the policy, impliedly warrants the ship to
be sea-worthy, and in every respect fit for the voyage upon which she is
destined to proceed ; and this agreement is uniformly a part of the contract,
although it is never expressed in the policy; and there is a warranty con­
tained by implication in every policy, that the vessel shall pursue her voy­
age by the customary route, and in the usual manner; and these implied
agreements flow from the principle, that men in their dealings with each
other are bound to look only to the ordinary mode in which transactions
of the nature they are contemplating are conducted, and the rules of
morality and justice will not permit either to take advantage of what the
other could not necessarily have foreseen and guarded against.
If the insurer wishes to protect himself by any agreement not implied by
the policy, he must be careful to have it clearly and explicitly expressed in
the instrument; and any communications which may have passed between
the parties previous to executing the policy, cannot have any weight in con­
trolling its effect, as the policy itself is to be considered the agreement between
the parties; and whatever conversation or letters may have passed from one
to the other, can form no part of it, unless expressly referred to by the instru­
ment. The construction of the policy may be varied by the usage of trade,
but this usage must be universal, and clearly made out; without which, it
cannot be presumed that the parties had it in contemplation when the policy
was executed; and like other written instruments, the intention of the par­
ties must always be sought after, in construing its meaning and determin­
ing its effect.
There are few restraints imposed to prevent any person from effecting a
valid insurance upon any thing in which he may possess an insurable inte­
rest ; and the only case in which the policy is void, on account of the charac­




500

Insurance.

ter of the insured, is that of a foreigner residing in a country at war with his
own, and insuring his property by citizens of the country in which he tem­
porarily resides; and even this disability may be removed by obtaining a
license to trade in such country—the law implying, that whenever a person
has permission to own and enjoy property, that he shall be entitled to the
ordinary means for the continuation of such enjoyment; and should a citi­
zen of the United States, residing in Great Britain, at the commencement of
a war between the two countries, remove to France for the purpose of carry­
ing on mercantile business in England, he would so far be considered a neu­
tral, by British laws, as to enable him to effect insurance in England upon
his property, and to recover upon the policy in the English courts.
It is materially essential to every contract of insurance, that the insured
should have an interest at risk ; and if he has no interest, or if the interest
which he possesses is subject to no risk, he can be liable to no loss; and it
necessarily follows, that there is nothing against which the insurer can in­
demnify him.
Merchants often insure goods in reference to a future interest which they
expect to acquire; but unless the title to the property passes before the loss, the
insured cannot recover upon the policy; as in the case of goods forwarded from
Boston to New York, with directions to the consignee not to deliver them,to
the buyer until he pays for them ; the buyer has not an insurable interest
until he complies with these directions; and the interest must not only com­
mence previous to the loss, but it must continue and subsist at the time the
loss actually occurs; otherwise, the risk which the assured is insured against
no longer exists, and the essential requisite, constituting his right to recover
upon the policy, is gone.
If the vessel or goods insured are forfeited, the insurable interest is taken
aw ay; and a person who insures a ship or merchandise, which, on account
of any act committed, are condemned under the laws of the United States,
his right to the property insured is taken from him, and his remedy upon the
policy is gone.
If the interest of the insured is illegal, although it may in other respects
be sufficient, the policy will be void: for courts of justice will not enforce
the terms of an instrument intended to protect a person in the possession and
enjoyment of property which he holds in violation of those laws which it is
their duty to administer; and if a policy is intended to protect property to be
used for purposes which are illegal, and contrary to sound policy and the
rules of wholesome trade, the contract will be void and ineffectual.
W hen part of a cargo insured is designed for objects which are legal, the
illegality of the remainder will not avoid the whole policy, but it will re­
main good for so much as the insured had a legal insurable interest; but in
such case, the goods not contraband and illegal must be owned by a differ­
ent person; otherwise, the contagion of illegality affects the innocent articles.
The subjects of nations engaged in war with each other, cannot protect
their property destined to the enemy’s port, by insuring it at home, whether
such property consists in ships or merchandise: for war suspends commer­
cial intercourse, overthrows the fabric of maritime rights, and destroys those
reciprocal beneficial privileges which exist in time of peace ; and the subjects
of either country, endeavoring to employ their property in contravention of
belligerent law, entirely divest themselves of all their insurable interest.
If the laws of this country interdict trade with a foreign port, a policy
upon goods intended for such port would be void : for the insurer, in such




Hints on the Construction o f Marine Policies.

501

case, has a deep interest in effecting the safe transit of the goods insured to
the interdicted port—which the law destroys by avoiding the policy, on the
ground that it guaranties to the insured the protection and enjoyment of
property to be used contrary to the rules of good faith, and in violation of
the sound dictates of public policy, and creates in the mind of the insurer a
strong desire to assist in evading the laws of his own countrry, for the pur­
pose of securing the property insured from capture, and thus protecting him­
self against the loss which must otherwise accrue from his liability upon the
policy. And it may be laid down as a general rule, that no contract is of
any binding validity, which is obviously inconsistent with the principles of
sound policy and national justice, or directly and plainly opposed to the inte­
rests and welfare of society ; and whenever property intended for the benefit
of an enemy, is insured, the law declares the policy absolutely void. But if
an insurance is effected upon property previous to its assuming a hostile cha­
racter, the contract is binding and valid; and if the goods are injured, or lost,
the insurer will be liable.
A policy of insurance upon property intended to be used in violation of
the laws of a foreign state, is binding, and cannot be impeached on that
ground, unless such laws are in accordance with the laws of nations, which
are of equal force in all countries, and upon all governments.
The wages of seamen do not form the subject of a legal insurable interest,
on the ground that the motive to exertion for the safety of the ship and cargo
would be materially diminished, if mariners could, by the payment of a small
premium, secure themselves in ultimately obtaining, at all events, a compen­
sation for their services; but they may insure goods purchased with their
wages; and the captain of a ship may insure his wages, commissions, and
privileges, as he is considered a person of more trust than the sailors.
Having examined some of the most important requisites which are neces­
sary to vest in the owner of property an insurable interest, when considered
with reference to the character in which it is held, and the purposes for
which it is employed, the consideration which next presents itself, is an exa­
mination into the nature of the various interests which form the subject of
insurance.
If the owner of a ship mortgages it for its full value, he still retains an in­
surable interest in the vessel; and although the assignment of a bill of lading
passes to the consignee the entire and absolute property in the goods, yet if
it is the intention of the consignor, by such assignment, merely to designate
the person who is to receive the goods, and not to convey away his property
in them, the consignor is considered as the creditor of the consignee to the
amount of the proceeds, and retains an insurable interest in the goods. The
interest of a mortgagee or trustee of property may be insured ; and a person
to whom the freight of a vessel has been mortgaged, may insure the legal
interest on his own account, and the equitable interest on account of the
mortgagor; and, as the trustee of property has the legal interest, he may
represent it to be his own, and effect an insurance upon it in his own name.
W here one merchant is indebted to another, and forwards goods to a mer­
cantile house to be held for the benefit of his creditor, such creditor has an
insurable interest in the goods so forwarded: but if the goods consigned were
directed to be sold by the consignee, and the proceeds paid over to the cre­
ditor of the consignor, an insurable interest in the goods would not vest in
the creditor, as he acquired no title to them previous to the sale, after which,




502

Insurance.

the money for which they sold would be held for his use; but if merchan­
dise is bought with such proceeds, the interest of the creditor would then be
insurable.
A bottomry bond, by which the vessel is hypothecated, and a respondentia
bond, by which the cargo is pledged, to a certain amount advanced upon
either, by virtue of which the lender would acquire the right of possessing
the property so hypothecated or pledged, for the purpose of enabling him to
obtain satisfaction of his debt, are in many material respects similar to a
mortgage, and vest an insurable interest in the lender ; and there are more
strong and powerful reasons in favor of allowing the lender upon bottomry
or respondentia to insure his interest, than exist in the case of a mortgage,
for mortgaged property is at the risk of the mortgagor, and the latter is
always liable, even if the property mortgaged is destroyed ; but the lender
upon bottomry or respondentia has a lien only upon the vessel or goods;
and if they are lost, his claim is extinguished forever. The borrower upon
bottomry or respondentia retains an insurable interest in the ship or goods,
to an amount equal in extent to their respective value, beyond the sum for
which they are pledged ; but he can insure only to this amount; and where
a vessel is hypothecated for more than its full value, the borrower has no in­
surable interest; but if there is in such case an agreement that the lender
shall insure only a part of the risks to which the property is liable, the bor­
rower could still insure to its full value in reference to the risks not insured
by the lender. A consignee, factor, or agent, has a lien upon goods to the
amount of his advances, acceptances, and liabilities; and as he has an inte­
rest in the property commensurate with the amount of his lien, it follows
that he may insure to the full value of such interest, whether the goods are
already in his hands or not.
A supercargo, who is entitled to a commission upon the cargo, has an in­
surable interest to the amount of such commission ; and it is a well establish­
ed rule, that any person having an interest in any lawful contract, from the
completion of which he may derive profit and advantage, has an insurable
interest in the subject of such contract, as soon as he has taken any steps to­
wards its performance. The owner of goods may insure the profits he ex­
pects to derive from the completion of the voyage, and he will be entitled,
under the policy, to the full amount of the profits which he can prove the
adventure would ultimately have afforded him.
The charterer of a ship, so far as he is liable to be injured by its loss, has
an insurable interest; and where a ship is chartered with an agreement on
the part of the charterer to pay a sum equal to her value, if lost, he may
insure to the full amount for which he is liable ; and an agreement, on his
part, to insure the ship, vests in him the same insurable interest, as if he had
bound himself to pay her value, if lost; and the owner of the vessel may
also insure, as he is not bound to trust entirely to the responsibility of the
charterer.
The owner of a ship, navigated on his own account, has an insurable in­
terest in the freight; and it is a general rule, that this interest commences not
only by the sailing of the vessel upon her voyage, with the cargo on board,
but also when the owner has a part of the goods loaded, and the remainder
in readiness for shipment. And when the owner of a vessel contracts with
another for freight, and incurs expenses in anticipation of the voyage, and
takes measures towards carrying the freight, and the ship is in readiness for
sea, an insurable interest in the freight for the contemplated voyage becomes




Hints on the Construction o f Marine Policies.

503

vested; and if the ship is lost previous to its commencement, the freight in­
sured may be recovered under the policy.
Whenever freight, covered by insurance, is valued in the policy at a cer­
tain sum, and goods sufficient to make but a small portion of the amount
named are put on board the vessel, and the remainder of the goods are in
readiness for shipment—if the vessel is lost previous to the commencement
of the intended voyage, the whole freight valued in the policy may be reco­
vered ; and the interest of the owner in passage money, in case of a loss of the
ship subsequent to the time when she was in readiness to receive her passen­
gers, would be governed by the same rule. W here an insurance is effected
upon the freight of a vessel which is chartered for an entire sum, to proceed
from the port of New York to stop at several foreign ports, and return, and
the vessel is lost at the commencement of the voyage, the owner would be
entitled to the full amount of freight insured for the whole voyage; as the
charter party gives an entirety to the contract, and the risk attaches on the
whole freight, as soon as the voyage is begun ; and it will make no differ­
ence whether the agreement to supply the cargo or pay freight is in writing
or only verbal, as the liability of the insurer is the same. The charterer of
a vessel during a certain period, has an insurable interest in the freight, since
he is the only one interested in the vessel’s earnings during that time: and
the owner and charterer, have each of them an insurable interest in respect
to the risks to which they are severally liable; and if the charterer makes
an absolute unconditional agreement to pay freight, he is possessed of an in­
surable interest, in reference to all risks.
The rules necessary to be observed in describing the insured in the policy,
are important to be understood; and this description should be sufficiently
broad and comprehensive, to include all who can prove their interest in the
property insured, and show that the policy was intended for their protection
and benefit. The usual form of description is to mention the name of the
person obtaining the policy, and state that the property is insured for him­
self, and all whom it may concern; and unless this general clause is inserted,
no one besides the person whose name is expressed in the instrument, and
his general partner, can avail themselves of the benefit of its provisions; and
it must be expressly made to appear, that the policy was effected on behalf
of the person claiming under it, for otherwise, although he has an interest
corresponding with that described in the policy, it will not be covered.
When the policy contains the general description before mentioned, it will
enure to the benefit of all who effected it, and will protect the interest of
those for whom it is intended, and who adopt it when made; and the adop­
tion of the instrument by the party for whom it is intended, at any time
before loss, and in many cases after, is sufficient, and is equivalent to an ori­
ginal order for insurance.
In the description of the subject matter which the policy is intended to
cover, it is necessary that the thing insured, and in some instances the pecu1iar interest intended to be protected, should be expressed by words suffi­
ciently clear and comprehensive, in the instrument itself; or that it should
contain something which will point out the mode of ascertaining with
certainty to what the contract is to be applied; and although the rules of
justice will not permit any technical inaccuracy or innocent mistake to
vitiate the policy and destroy its effect, still it is important that the instru­
ment should express the intention of the parties with reasonable certainty.
I f the description designates the subject with tolerable certainty, and if from




504

Insurance.

the terms of the policy it could not have been the intention of the parties to
refer it to any thing else, a mistake in the name of the vessel, or other pro­
perty, will not affect the liability of the insurer. Where the marks upon
bales of goods are incorrectly described in the policy, and it is shown to
have been the intention of the parties to effect the insurance upon such
goods, and their identity is clearly made out, the insured may recover upon
the contract. The general description in a policy, goods, wares, and mer­
chandise, is very comprehensive, and under it the insured will be entitled
to claim compensation for loss of property of almost every nature. Specie
and bullion will be included under this description, but not bank bills; and if
it was the apparent intention to insure jewels, rings, &c., there is no substan­
tial reason why they should not be covered and protected by this description.
Policies are sometimes effected upon ship, or ships, to be afterwards
declared, and other property may be insured in the same manner, and after
effecting such an insurance, the insured cannot be compelled to declare his
interest, but may refrain from so doing until after a loss has occurred, when
he may declare the interest insured to be in the goods so lost; but if a condi­
tion is inserted in such policy, that the insured shall declare the property
intended to be insured, as soon as he can receive information enabling him
to do so, he must not delay communicating such information after it is deri­
ved, and his rights under the policy will be determined as soon as this decla­
ration is made to the insurer.
W hen different shipments of goods are embraced in the description con­
tained in the policy, the insured may apply it to either, if it is not made to
appear that it was not the intention of the parties to protect the property
claimed to be covered by the instrument; and whenever the policy is so
drawn, as to give the insured a discretion in declaring the interest to be pro­
tected, his right to make his election cannot be altered, limited, or taken
away, by any act of the insurer, for the contract is perfected when the policy
is subscribed, and the declaration of interest is a mere exercise of power
conferred by the instrument upon the insured.
W hen an insurance is intended to be effected upon profits and commission,
it is the more usual and safe course, to describe them specifically, although
this does not appear to be absolutely necessary ; and where the intention of
the parties is clear, an insurance effected on property in a ship is sufficient
to cover the intererst of the master who is to receive a commission on the
cargo.
An insurance upon the ship, comprehends the body of the ship, her
tackle, furniture, and outfits; and the term outfits includes sails, cordage,
provisions, armaments, and ammunition. Freight may be insured by the
owner of the vessel, even on part of a voyage, without disclosing the
remainder, although it was formerly considered otherwise. But a person who
is not the owner of the ship, cannot insure the freight, without disclosing
the particular interest out of which it arises; and where the owner of a ves­
sel disposes of it, retaining his right to the freight she may make during one
voyage, and insures his interest in such freight, he cannot recover upon the
policy, unless it contains a particular description of his interest in the vessel,
upon the ground that his interest to be protected is not strictly that of
freight, which is defined to be the price of transportation paid by the owner
of the goods to the owner of the vessel. Where a re-insurance is obtained,
the same general rules apply as to the description of the former policy, and
the interest insured, which must be defined and ascertained with certainty.




The State o f the Currency.

505

The contract for insurance must contain a stipulation for the premium,
and the rate is always expressed in the policy, but as the underwriter is lia­
ble to loss, and entitled to a premium, only so far as the risk extends, it does
not necessarily appear from the policy what amount will be effectually and
absolutely insured, and accordingly it does not show what amount of premium
will be eventually payable on the risk. It is a general rule, however, that
the premium on the whole sum named in the policy is the amount consi­
dered due; and this will be presumed, unless from the particular circum­
stances of the case a different rule of construction is made to appear. The
usual form of a policy contains a clause, by which the underwriter acknow­
ledges himself to have received the premium, although this is by no means
conclusive evidence that it has been paid, but it is inserted to preclude the
necessity of proving its payment in case of loss, which would otherwise be
rendered necessary to entitle the assured to recover.
W hen the policy is void without the fault of the assured, or by reason of
its illegality, or where the risk does not commence, no premium can be
recovered. It is indispensably necessary that a risk should be incurred,
before the premium can become due, and it is in the power of the assured
by placing none, or only a part of the property covered by the instrument,
at risk, to annul the contract either in whole or in p art; and this is an indul­
gence which the law allows to this species of contract, and it is considered
an implied condition upon which it is entered into, it being often impossible
to know at the time the policy is made, what quantity of goods may be ulti­
mately placed at risk.
The rapid view which is here taken, for the purpose of pointing out the
rules necessary to be observed, to give validity to a policy of marine insu­
rance, and to vest in the assured every legal right which an instrument of
this kind is intended to confer, is sufficient to impress upon the mind the
importance of having the policy carefully and skilfully drawn'—and as
large sums are often involved in the determination of a single word, every
sentence should be clear and comprehensive.

A rt . V III.— 'THE S T A T E OF T H E C U R R E N C Y .
W e resume this subject with feelings and under circumstances very
different from those which attended the writing of our former article. The
apprehensions we then entertained have been more than realized. Indeed
the first number of this magazine had scarcely made its appearance, before
the accounts of the state of the money market in England were such as
distinctly to warn us that the tide of temporary prosperity caused by borrow­
ing money was turning. And since then the reflux has been going on with
such a force and rapidity of current, as even we, who had always expected
a good deal, did not anticipate. The rate of exchange has been such as to
make a large exportation of specie unavoidable, and this, though not very
long continued, has already had the effect which we stated that it would, of
putting in jeopardy our whole system of convertible paper currency. The
banks doing business through a large portion of the United States, have
again suspended the payment of their obligations, and the money of the
VOL. x. — no. vi.
64




506

The State o f the Currency.

greater part of the country has for the second time within three year3
become a paper medium relying for support solely upon public opinion.
Of the causes of this second suspension, the views are almost as various
as the individuals who hold them. There are many who consider it as a
necessary consequence of the attempt to resume specie payments last year,
which they maintain to have been premature and injudicious. Others
regard it as the effect of measures taken since that resumption, and having
no necessary connexion with that event. One class of persons affirm that
the relaxation of the protective system, by tempting to excessive and burden­
some foreign importations which must be paid for with money, is at the
bottom of the whole matter, while another see it in the capricious policy of
the secretary of the treasury when distributing the surplus revenue. Then
again the thorough-going political partisans make President Jackson or the
Bank of the United States the rock of offence, according as their party pre­
dilections lead them to admire the one or to detest the other. One peculi­
arity in this great diversity of sentiment seems to us to be, that, contrary to
the ordinary rule, there is some foundation in justice for each variety of it.
A cool observer cannot avoid admitting, even upon a hasty glance at the
several causes assigned, that they have each and every one of them had
some operation upon events, although he may not be disposed to admit that
they have precisely to the extent which the advocates of each would claim
for their respective and favorite theory. It is difficult, in questions of this
kind, to hit the taste of the public, which does not relish the degree of gen­
eralizing essential to explain the truth. It is the nature of man to seek a
sharply-defined idea, in order that it may be fixed in the memory with
convenience. But this process, when applied to a series of events brought
about by so many different agents, is rarely possible, without some sacrifice
of accuracy in judgment. Yery seldom is it that any given effect can be
affirmed to proceed from any single cause ; most especially so when the
passions of men, engaged in vehement contention with each other, are let in
at one and the same moment, to give new and strange impulses to events,
and to distort the medium through which those events are to be viewed and
judged.
In the midst of all this, we are however arriving at one general conclu­
sion, which may be of use in directing our future investigations; and that is,
that the plan of joint stock banking, as practised at this time in the United
States, without the presence of a regulating power of some kind or other to
keep it from running into excess, is wholly unsafe, and the currency which
it provides is not a sound currency. Thus much, the experience of the past
may now surely authorize us to take for granted. But if we assume this,
the questions which immediately present themselves, however difficult of
solution, are not many in number nor hard to be understood. W e must
either introduce the power of regulation, which is essential to the system we
have, in order to make it work beneficially, or we must revolutionize that
system itself. Either some mode must be devised to keep paper money
issued by banks convertible into gold or silver, or we must give it up and
go back to the hard money. This seems to be the exact nature of the issue
now making in this country, upon the decision of which, much in futurity of
good or evil must absolutely depend.
W e are not disposed at this time to go very largely into the discussion of
past events. There is so much in them on all sides to regret, that we dislike
to approach them more than we are obliged to. It is impossible to over­




V

The State o f the Currency.

507

look the fact, however, that so long as a national bank was in existence,
there never was any reasonable ground for complaining of the currency, and
the moment that it has ceased to exist, complaint has regularly become loud
and incessant; a national bank is then a remedy for this evil at least, and
being such, it of course must be included among the alternatives from
which it may hereafter be deemed proper to select. Of the probability of
its adoption, we are not at present called to consider, neither are we con­
scious that that question has much to do with our purpose, which is to look
over the whole field of view and observe what the remedies that can be sup­
posed to he applicable to the present case really are, and which of them it
would be the part of wise financiers to adopt.
And first, with respect to the propriety of a new national bank, it cannot
be denied that there are reasonable causes for doubt whether it could again
be made to act upon a banking system, so widely expanded as ours now is,
without presupposing a concentration of capital, which, in the present cir­
cumstances of the United States, is hardly practicable, and which, if practi­
cable, is not unattended with danger. The great difficulty of so large an
amount of disposable capital seems to be, that it tempts to the undertaking of
too much ; we think that this has been made clearly manifest by the exam­
ple of the United States Bank of Pennsylvania, which, since it became a
state institution, has unquestionably gone far to forfeit, among sober-minded
and reflecting persons, the very high opinion which had been entertained
of its management while under the national charter. W e know very well'
that in saying this, we incur some hazard of involving ourselves in the con­
tests of the day. But the first duty of writers upon subjects like these, is to
express freely what they believe to be the truth without fear or favor, and it
is in obedience to this dictate that we will proceed to give our reasons for the
opinion we have advanced.
W hen the administration of General Jackson had carried the point with
the people, of terminating the existence of the national bank, it ought to
have been foreseen by those who advocated its continuance, that the currency
would fall into disorder without it. W e are aware that this was abundantly
foretold by many leading politicians in opposition, but the conduct of the
bank itself, in winding up, gives some color to the belief that it did not really
entertain the apprehensions so freely thrown out by its advocates, and that
these were, many of them, rather the healed offspring of political invective,
than sober and rational conclusions from well-laid premises. Had the bank
really foreseen and believed in the arrival of the crisis which was about to
happen, we do not think it would ever have made the repayment of so great
a share of its capital as was placed in the southern and southwestern offices,
depend so much as it did upon the continuance in a sound state of the credit
system. Nor yet would it have accepted of such terms as were imposed
upon it by the state of Pennsylvania, as the consideration for a charter to be
granted by her. Both these acts were predicated upon the supposition that
a national bank was entirely unnecessary; the very position which had
been all along maintained by the party friendly to the administration—and
that the United States Bank, chartered by a state, would exercise the same
control over the credit system, which it had done when chartered by con­
gress. Had this proved true, the whole argument of the friends of a national
institution would have been shown to be unsound, and the contest between
General Jackson and the bank must have terminated favorably to the for­
mer, in the judgment of moderate men. The result has, however, left the




508

The State o f the Currency.

position assumed by the latter, as yet, impregnable; and the difficulties into
which the bank has subsequently involved itself, instead of bearing against
it, as by some they may be thought to do, go conclusively to show that no
institution chartered by a state is fit to regulate the currency, and that the
attempt to do so must result, only as it has resulted, in complete disappoint­
ment and disaster to the undertakers and the public.
Indeed it is plain that it could not be otherwise when we reflect how very
different a relation the United States Bank immediately assumed to the coun­
try, upon its acceptance of a state charter. From being a bank to benefit
the commercial interests of all the cities, it immediately contracted its view
to those of Philadelphia, and through her, of the state in which she is placed.
From confining itself to the negotiation of the best of business paper, and to
exchanging value between the ends of the country, it went into the patron­
age of a whole system of local state internal improvements. From the pro­
motion of the trading interests of the seaports with the interior, in something
like a ratio to the amount of transactions naturally occurring in each, it went
into a project of securing to Philadelphia a greater portion than belonged
to her, and thus of exalting her at the expense of ail rival places. The
whole action of the machine was changed, and with it the character of the
investments made of capital. An artificial value was thus given to various
sorts of property, depending upon the successful management of the bank
for its continuance, and subject to entail great loss upon it in case of misfor­
tune or untoward accidents. For these would inevitably be the signal for a
withdrawal of the extraordinary and fictitious advantages that kept it up, and
the loss of these advantages would be attended with a more than correspond­
ing depreciation of the property, the value of which rested upon their dura­
tion.
The two acts which we have already mentioned as errors, in the course
of the United States Bank, namely, the acceptance of a state charter, and the
Iqng credits given in the south, are those most directly in contradiction to the
whole tenor of the argument used in favor of its recharter as a national bank,
and are moreover in our opinion, the true causes of her present unfortunate
position. Had the bank persisted in winding up in the rigid manner which
the circumstances of the time would seem to have made necessary, her policy
would have had some effect in retarding and perhaps diminishing the extent
of the subsequent catastrophe. For her contraction would have partially
counteracted the expansion that was going on in other quarters, instead of
stimulating it, as tlie actual policy did, and what she might have realized
would have been so much redeemed from the wreck of capital and credit
whieh has been subsequently made in the United States. It is true that
much loss might have been incurred from the attempt, and that not quite so
favorable a tabular statement could have been made of its returns to the stock­
holders ; but what was this, compared to the actual amount of losses since
incurred? Besides, the management of the bank had reserved large
amounts expressly to cover these losses, which might have been of more
service in the pockets of the proprietors, and certainly would have given
them more solid satisfaction, than to see them thrown away either in lavish
profusion in exchange for the doubtful blessing of a state charter, or in
schemes to secure the recovery of debts which events were showing to be
desperate.
For it must be added that the change from a national to a state policy on
the part of the bank, would not of itself have brought about such unfortunate




The State o f the Currency.

509

results so rapidly, if there had not been coupled with it attempts to regain a
lost portion of the capital of the old bank upon a scale of too great magnitude
for its new position. The carrying forward to market such a crop as that
of cotton has now annually become, if undertaken by a corporate institution,
must necessarily call for a degree of strength and skill aided by fortunate
circumstances which cannot be reasonably expected often to exist together.
It is not a natural business for a bank, and has a tendency at once to unsettle
prices from their sound and true basis, the proportion between demand and
supply. When, therefore, the United States Bank went into the project
with resources crippled by other engagements, as well as the failing charac­
ter of many of its debtors, it entered into a contest against chances by no
means in its favor. For the European money market could not be regarded
by any means as inexhaustible, or as perfectly patient of all drafts upon it,
however large. And the credit even of the bank, well established as it
might have been during cautious and prudent management, could not be
expected long to stand at the same height, after it had gone into measures
which can by no means deserve to be considered either as cautious or pru­
dent. The accident of two successive seasons of scarcity in breadstuff's in
England could not, to be sure, have been foreseen by the wisest persons; but
neither should they have been considered as improbable, or certain not to
happen. Nor yet have they done more than merely to hasten events which
must have happened just as certainly, in the end, from other causes. A
hank, having once departed from the line of its duty, as a money-lending
institution, and become a systematic money-borrower, never yet was able to
retrace its path to safety and to credit. The disease is then at the core, and no
human remedy has yet been discovered sufficiently powerful to drive it
away.
While we regret that the United States Bank should have fallen into a
series of errors, detracting so seriously from the reputation which its former
management had earned for it, we cannot but regard the result as on the
whole fortunate for the country at large; first, because the fact is thereby
established of the impossibility that any bank chartered by a state, with a
capital however large, can have power to regulate the currency; and
secondly, because the existence of such an institution in high credit, must
necessarily have been a great obstacle to the organization of a new national
bank, if it should ever please a majority of the people again to authorize one.
W e are not now about to go into the discussion of the question whether
such a measure is expedient, or otherwise, at this particular time; and even
if we could prove the affirmative ever so clearly, we are aware that the
tone of the public mind is not sufficiently decided to give an unqualified
assent. There is a seeking for some new variety of treatment which shall
restore the body politic, without the necessity of looking back to old ones,
and so long as that exists, it is reasonable to expect that theories will be
constantly brought forward and gain some weight in the community, until
their value has been fairly tested by experiment.
Of these new theories, that which is the first on the list for adoption in prac­
tice is the plan of the independent treasury. And it is worthy of remark in
this connexion that such have been the passions excited, in whatever of discus­
sion has taken place upon this subject, as to make it difficult to arrive at
any conclusions that may be depended upon respecting its true nature. The
spirit of party has on one side had a tendency to magnify the utility of the
project, quite as much as on the other to exaggerate the dangers which will




510

The State o f the Currency.

attend it. W e frankly confess that it has very much excited our surprise,
to see the friends of the administration so ready to make up an issue here;
for it seems to us that by so doing they expose themselves to the responsi­
bility which will inevitably be incurred, if the results in performance do
not come up to those which have been promised. For our own part we see
no merit at all in the sub-treasury project, but then we find in it nothing posi­
tively objectionable. The great error it involves is in the dereliction of
duty; the voluntary abnegation of that control over the currency which it is
the primary duty of every good government to secure, in order that the peo­
ple should not suffer. The mere regulation of what shall or shall not be
the medium of payments to be made into the national coffers, can never
involve a question to compare in importance with that affecting the amount
of exchanges, constantly going on between citizens of the same state or of
different states. A government of any kind necessarily has within itself a
power of coercion, which will always save it harmless from loss in compari­
son with that which must be borne by individuals. It may dictate its own
terms, and there can be no one to contradict. But the moment that it
assumes the attitude of command, it loses the greatest of its recommenda­
tions, the protecting attribute, and becomes little better than tyranny, and this
it is not a whit the less under a democratic form of administration than under
a despotism. The want of sympathy is just as striking in both cases, and
the inattention to the convenience or the benefit of the individual citizen.
Hence the difference between the two becomes only the difference of a me.
But let us for a moment proceed to examine more minutely the precise
operation of the sub-treasury scheme, so far as we can understand the views
of its advocates. And to this end, let us adopt for our guide the pamphlet*
published some time since by Mr. Gouge upon the subject, particularly as it
is the only work we have seen which takes any thing like practical
views. The first remark which occurs to us to make, has reference to the
general amount of specie which the government would probably require the
country to supply. This appears to us to be easily estimated, although it
has been the subject of much exaggeration by the different parties, according
to their peculiar bias. Of course the amount of specie must depend entirely
upon the proportion in which the receipts exceed the expenditures of the
treasury; because it is only the average of balances unexpended, which will
remain on hand in coin. Now if we look to the past and observe what
these average balances were during the existence of the national bank, or
(throwing out of view the artificial surplus of the years 1834-5) during the
time since elapsed, we shall find that they did not exceed the sum of five
millions of dollars, and were even then subject to extraordinary fluctuations,
sometimes falling and sometimes rising, according as the occasions happen­
ed when large amounts of the national debt became due and were paid off
Yet five millions would seem, if we judge by the past, to be the sum of coin
which the operation would keep locked up. But we incline to think even
this sum is greater than what would be necessary for the future, and that
for these reasons: The derangement of the currency will necessarily have
an effect in checking trade, and through this of diminishing the receipts
from the customs, already declining from the reduction which necessarily
*A n Inquiry into the Expediency of dispensing with Bank Agency and Bank
Paper in the Fiscal Concerns of the United States, by W illiam M. Gouge, Author of
a Short H istory of Paper Money and Banking. Philadelphia, 1837.




The State o f the Currency.

511

takes place in the duties by the working of the compromise act. The sales
of the public lands would probably fall short also of producing under the
new system, the sum which has been heretofore received through the facili­
ties furnished by hank credit. If nothing but specie is to be the medium of
payment, of course not so many persons will be able to make the payments
required, as were so while they could rely upon the assistance of paper. If
then on the one hand, we calculate that the general receipts of the govern­
ment must fall off under a deranged system of currency, on the other, we see
no reason to expect any corresponding diminution of public expenditure.
Every year adds to the charges which attend the administration of the public
affairs, and that even in a ratio more than proportionate to the enlargement
of the settled portion of the union. And notwithstanding the outcry that is
constantly kept up about extravagant appropriations, and the natural desire
existing in every party of the majority to do all they can to reduce expenses,
and thus gain the credit with the people of loving economy, experience fully
proves that under whatever party the government is carried on, the expendi­
tures do go on, and will go on increasing, and we see no reason fox suppo­
sing the system, which has been established so long that the public mind
has become too much habituated to it to pay any attention to the com­
plaints that are made, will ever be checked, until the deficiency of the
receipts becomes striking enough to threaten the formation of a new national
debt.
But it must he very plain to the dullest comprehension, that when the ex­
penditures of the government exceed the receipts, the effect of the sub-trea­
sury system upon the country must be exactly nothing at all. For where
there is no money to keep, of course there is no necessity of making arrange­
ments to keep any. To supply the vacuum, the treasury must either be
authorized to issue bills of credit, like treasury notes, or new schemes must
be devised to increase its resources. The issue of treasury notes receivable
in payment for duties would supersede the necessity of a recourse to specie
in settling with the government, and hence there would be no interference
at all with the other credit relations between individuals, which could go on
in the country, generally, just the same as if there was no government. And
inasmuch as the issue referred to would be much more acceptable to the com­
munity than the devising of any new burdens in the way of taxes, it is fair
to presume that this contrivance will be continued in practice so long as it is
possible to make it available.
Under this exact view of the case, the effect of the sub-treasury upon the
country, would probably be to create an artificial species of currency, to be
used for a particular purpose, and to a limited extent. This currency would
in general consist of treasury drafts, issued to public creditors in payment
of demands growing out of the service, and of treasury notes—and no specie
could ever be required, excepting when the supply of these happened to fall
short of the demand, a contingency which could occur to a great extent only
when the revenue became excessive, an event not likely very soon to take
place again. Banks and brokers would of course supply themselves with a
sufficient stock of this species of currency, to accommodate those of their
customers who were in habitual necessity of resorting to them. And the
government, while receiving and paying out this peculiar species of currency,
would stand entirely aloof from all action upon the medium used in fulfil­
ling the rest of the contracts and engagements in the community just as
much as if it was the government of China.




512

The State o f the Currency.

But in order to make this more perceptible, let us enter into a minuter
analysis of the sources of income for the United States, and the precise situa­
tions in which it is realized. Here, our labors are essentially facilitated by
the tables which we find appended to the pamphlet of Mr. Gouge. By them
we find, that during the year 1834, the relations in which the various por­
tions of the union stood to the treasury, were as follows:
The expenditures in the eastern states of New England were less than
the receipts for that year, in the sum of $28,908, and about to this trifling
amount, therefore, New England would, under the new system, have be­
come a debtor to government for specie. In the middle states, including the
great port of entry, of New York, the excess of receipts over expenditures
was in the sum of $1,127,297; and to that extent, New Y ork would have
been a debtor for coin. But, on the other hand, the expenditures exceeded
the receipts in the south and southwestern states, in the sum of $957,218, and
in the western states, in the sum of $867,470. Hence, in these two sections
of the country, the treasury of the United States would have been a debtor
of specie to them to so large an extent as not only to swallow up the amount
due to it in its turn in the other divisions of the union, but even to leave it posi­
tively deficient—a deficiency which was in fact covered only by the balance
from the preceding year.
In this case, it is very clear there would have been not the least necessity
for any specie at all. For the west and southwest, to whom so much was
due over the receipts, would have taken for the excess, the drafts of the
treasury upon New York, and these would have served as a medium of
remittance to the merchants of that city, who would have paid them into the
custom house at that place instead of coin. So that, in point of fact, the balance
which the United States could have held in specie, any where, during that year,
under the sub-treasury scheme, would have been too trifling to deserve to
enter into consideration in any discussion of the operation which takes place
upon the credit system of the United States.
By the table which we have already cited so much, it appears that of all
the collections made into the treasury in 1834, New York city furnished
nearly one half. That is, the sum total of receipts throughout the United
States, being slightly over twenty millions of dollars, the receipt for customs
in New Y ork was more than nine millions of dollars. It appears, then, in­
asmuch as the receipt and expenditure for New England is so nearly balan­
ced by the amount realized from customs in Boston, as to make a case by
itself, that New York did that year supply the fund out of which the excess
of expenditures in the rest of the creditor states was paid. But this very cir­
cumstance of the concentration of the foreign trade in New York, by which
it becomes the distributer of goods to all the rest of the country, and thus runs
them in debt to her to pay for them, is the one which would make treasury
checks upon the sub-treasury at New York, an object of desire to all who
deal with her. They would of course prefer to be paid in a mode so easy
of remittance, rather than give the government the trouble of transferring
specie, which they would have the trouble and expense of sending back
again. Hence a system of drafts would take the place in no long period
of any system of specie, and the sub-treasurers would become very conve­
nient officers in a sort of new customhouse bank.
If we are in any degree correct in our views, the general effect of the sub­
treasury scheme upon the currency and banking system of the country,
must in ordinary years he admitted to he likely to be very small. Even in




The State o f the Currency.

513

New York, where the greatest sums are accumulated, one fact used by Mr.
Gouge, to show the feasibility of the plan, is the most conclusive argument
against its utility. “ In no one week,” he says, “ of either of the years, 1833
or 1834, did the amount received at the custom house in New York exceed
6650,000.” This would make a little more than $ 100,000 a day, in periods
of the greatest receipt, though the average of receipt through that year
did not equal thirty thousand dollars. Now, when we consider what a very
small proportion this bears to the payments between individuals, and that a
single bank of moderate capital probably receives a greater sum every day,
we can very easily appreciate the extent to which the sub-treasury is likely
to correct a disordered currency. And when we reflect upon the sum of
daily payments which are made in all the banks together, in a place like
New York, it immediately becomes evident, that the mere presence of a sub­
treasury like the one described, can never have any effect in supplying an
adequate quantity of good currency, or in preventing the depreciation of a
bad one.
To sum up all in one word, the precise effect of the new plan, as it seems
to us, will be simply to remove the government from any control whatever
over the currency of the people, and to create a peculiar currency for itself.
This last may be of gold and silver, it is true, but we do not imagine it will
really turn out to be more than a different species of paper. Ten millions
of treasury notes will, in our belief, be quite sufficient to effect the entire
movement of the national finances for a year without any need of coin, pro­
vided always, that the president or secretary of the treasury is disposed to
have it so. But since the days of distributing the surplus revenue, we have
had our confidence so much shaken, in the capacity of the latter, that we
dare not affirm that he would not break up the ordinary channels of trade
again, as he did then, whenever his arithmetic prevailed over his notions of
commercial affairs. The sub-treasury, badly managed, might make itself
felt as an evil, just as a bank does when badly managed; but we must again
repeat our conviction, that there is nothing in its ordinary course which
would merit for it so distinguishing an epithet as either good or bad ; so far
as the currency is considered, it appears to us to be likely to be a mere nul­
lity. And in this point of view, if established at all, it would be far better
that it should go into operation with the specie clause, as it is commonly
called, than without i t ; for the banks would be more thoroughly protected
by it from the hostility of the government, whenever minded to be hostile,
than if it was in the habit of receiving their notes, and thus able to return them
in large quantities at once, for redemption in coin. For these sweeping
demands would always be more difficult to meet than the more straggling
ones of individual merchants about to pay their bonds, which could be pro­
vided for beforehand, by securing sufficient substitutes for coin in the peculiar
paper medium which the government is bound to receive.
The great objection to the sub-treasury plan, is then of a negative kind.
It is rather for what it fails to do, than for what it does, that we think it
should be condemned. It fails to protect the people from a fluctuating paper
medium; it fails to provide a sound and uniform currency; it fails in bene­
fiting any one but creditors of the government, who are generally office­
holders, and these it benefits at the expense of all the other citizens. It is an
unfortunate surrender of one of the great objects for which the constitution of
the United States was adopted, and is a retrograde movement to the misery
and disgrace of the last years of the confederation. The policy which it
NO. v i.— VOL. i.
65




514

The State o f the Currency.

marks out is the let-alone policy, which never has heretofore, to our know­
ledge, made a people great and. flourishing, and which, to our best belief,
never will hereafter.
But there is another project which has been connected with the sub-trea­
sury, the effect of which may be more decided for good or for evil. Wo
allude to the proposition for a general bankrupt law, with provisions appli­
cable to all corporations issuing promises under state authority. This, we
admit at once, to be likely, if adopted, to produce a decided change in the
currency. But it will, at the same time, enormously increase the national
power and make a step towards consolidation, before which all former fede­
ral offences of this kind must sink into insignificance. Of course, we arc
not prepared, at this time, to go into an examination of a project which has
hardly yet assumed a shape sufficiently definite to enable us to take hold of it.
But it has already been once recommended by the president of the United
States, in a formal message to congress, and we have reason to believe is yet
a favorite notion with many of his most active friends. Hence it is not un­
likely to be again pressed before the attention of the public in so earnest a
manner as to make it advisable that some idea should be generally enter­
tained of its probable operation.
A bankrupt law, then, which should provide for the winding up of all
corporate institutions, such as banks that issue promises on demand, immedi­
ately upon their failure to redeem them, would have the effect of putting all
the state banks in the country under the control of a central power existing
somewhere or other in the national government. It would of course sub­
ject the charters granted by state legislatures under state authority, to be
construed and terminated by the courts of the United States, and to that
extent destroy the whole penal authority of those belonging to the several
states. W e are not prepared to say that this very high-toned measure might
not work favorably in eradicating the precise disease under which the cur­
rency labors, but we very much doubt whether its general tendency, in all
other respects, would not be highly pernicious. W e should most particu­
larly be afraid of the political organization which it would create, and the
subjection that would follow of the money power of the country, to the
influence of ardent and ambitious politicians. It has heretofore been a
favorable feature in our financial system, that the property of the public has
been made a sacred trust in the hands of that class of citizens who were not
dependant upon the political government for favors or support. W hen this
principle has been adhered to, no losses have ever been incurred, and the
instant it has been departed from they have always happened in great num­
bers. Now the present plan appears to sink it wholly out of sight, by
making all classes of citizens in a degree dependant upon government favor.
It leaves hardly a person in active occupation, whose interest would not be
liable to be directly affected by the application of the law, and who would
not therefore be joined in interest with the particular system of policy, what­
ever that might be, which it pleased our temporary rulers to declare to be
the right one.
Yet it is on the whole too early to take any decided ground in opposition
to a scheme which has been so little unfolded, and which may after all
never be pressed to execution. The doctrine which it involves is so directly
adverse to all the favorite constitutional scruples of the majority, in the
entire southern region of the country, that we cannot persuade ourselves
they will ever be brought to listen to it. And if they will not, there is no




The Stale o f the Currency.

515

danger of its ever being adopted. W e wish we could say the same of the
notion of returning to a metallic currency, but we cannot. There is just
enough of uneasiness in the public mind, about the durability of paper
money resting only upon credit for its value, to foster the hope of improve­
ment from the adoption of a different and more certain medium of exchange.
Yet when we think a moment upon the actual state of the circulating
medium, and compare the amount of coin in the country with the condition
of indebtedness, which exists as well to citizens at home as abroad, we can­
not but dread the effect upon all the active classes of our citizens, which the
progress of this outcry for hard money may in course of time bring about.
Perhaps there is no greater state of pecuniary misfortune to a nation, than
that which a gradual contraction of the currency occasions. For inasmuch
as the price of money goes on constantly rising under it, in the ratio that
labor and commodities keep falling in value, every bargain on time necessa­
rily is attended with loss, and the amount of that loss is just in the propor­
tion to the length of time interposed between the engagement and execution.
The purchaser of goods to-day, cannot sell them again to-morrow, with any
prospect of recovering his outlay, and every day that he keeps them on
hand renders it more desperate. The scarcity of currency makes the value
of all debts expressed in the ordinary mode, far more burdensome to debtors,
for the reason that it diminishes the valuation of all the property they have
in offset. And the only class of individuals who are in any degree bettered
in situation, are the heavy capitalists, who owe nothing to others, but have
much owed to them.
It seems now not unlikely, that for some time to come, this contraction of
the currency, consequent upon the attempt to continue specie payments, will
have the effect we have described. The next year will probably for the
first time, develop the practical effect of the great loans which have been
negotiated in Europe, at such exorbitant prices. These will, however,
press most heavily upon those sections of our country which have now no
metallic basis for their currency, and will materially impair their ability
soon to resume one. Nothing can save us from ultimate bankruptcy, but
extreme economy and extreme industry united. Economy, in not purcha­
sing more from abroad than we absolutely need; industry, in producing as
much as we can to sell. Whether the people throughout the United States
are yet prepared to see this in its true light, and avoiding all the false notions
which ever are found in plenty during critical times, to set about the work
of redemption in earnest, and upon the principles we describe, we are unable
to say. There are some indications to prove the contrary, which we regret
to perceive; for it is not impossible, that they may be precursors of a new
attempt to stretch the credit system even farther than it has yet been stretch­
ed, an attempt, we will add, that can end only in one, and that a very fatal
way.
The evil of the time is a great want of confidence, and this want of confi­
dence exists only because when given, it has heretefore been so much abused.
Nobody now has much faith in the stability of any thing, for the reason that
little or no stability has yet been shown any where. If we mean to get on
again, we must strictly adhere to our promises, and show the world that
there is still some ground left to build upon. The government must be a
little more mild in its demeanor, and less inclined than it is to set up new
projects. The people must be less addicted to favor flattering demagogues,
who tell them only what it pleases them to hear. And all sober and




516

The State o f the Currency.

reasonable men must unite together, to scout the quack notions of the day,
which are fearfully prevalent, and which every sciolist in political economy
is ready to press into practice, with as much confidence as if philosophy and
experience had combined to prove their value.
There are on the one hand the cotton producers, who, if we are to judge
by the spirit of the late convention at Macon, are disposed to throw upon the
credit system the whole burden of the expense of raising their staple, for at
least six months after it is brought to m arket; and who, with every profession
of allowing the natural rule of supply and demand to regulate the price, are
in fact for measures which would prevent, by artificial interference, that
supply from meeting the demand. W e are unable, at this time, to devote
the proper degree of attention to this new project, nor indeed has it yet come
in sufficiently definite form before the public, to enable us to take hold of it
as it deserves. But we do not consider the effect this may produce, as of
half so serious a nature as that which may follow the disposition undoubt­
edly increasing among the northern states, to favor the notion of a metallic
currency, already referred to. This movement comes from a quarter where,
we must frankly confess, we should least have expected it, and is calculated
to bring about changes very much at war with the professed designs of its
advocates. The practical result would be, so far as we may be permitted to
express an opinion, to put in the hands of rich lenders most of the solid pro­
perty of the country, and to turn adrift into the world all that large class of
debtors, who live hy applying their industry and their activity, to the
improvement of wealth but partially their own. Such appears to us to be
the precious nature of the boon, which the wisdom of some equality-loving
politicians is craving for us. Now although we profess less than they do,
yet by repudiating their notion altogether, we do not doubt that we are really
working mere effectually to preserve equality than they are in supporting
it. Hardly any direct project of making the rich richer and the poor
poorer, could be devised that would be so effective to the purpose as this one;
for the credit system, defective as it questionless is in many points, ought by
no means to be reproached with any tendency to depress human industry, or
with not supplying the means of advancement in fortune to all men of good
character, whatever their disadvantages in early life may have been. We
are wholly at a loss to understand the force of the arguments that have been
brought to bear upon it on this score. Those which are made by capitalists
appear far more solid, and when urged by them, excite in us no surprise.
W e see and know that the credit system does interfere with the profits that
might be made by ready money, as well as to shake the basis of valuation
upon which all the property of a rich man must rest. But these are reasons
only to influence the selfish and wealthy, and not to weigh a feather in the
mind of him who has nothing of his own, and whose chance to get some­
thing is better under the credit system than without it. If the denunciations
against banks, could ever so far shake the credit of their nptes as to exclude
them from circulation, and to reduce our currency down to the fifty or sixty
millions of specie which we now possess, we know of none who would gain
so much power by the change as the great capitalists. For they could
employ more laborers at lower wages, they could spread their hands over
more houses and lands, and force to ruin if they liked it more of their debt­
ors, than would be possible for them under any other modification of circum­
stances. How far this would conduce to greater equality, our readers can
judge as easily as we.




The Stale o f the Currency.

517

Bat we are sensible that this argument is not necessary, to satisfy the intel­
ligent and active members of the community of the true tendency of any
project to return to a metallic medium, and we hardly expect it will ever
reach the minds of most of those to whom it might be serviceable to consider
it. Yet in reviewing the present state of the currency, it would not have
been proper wholly to overlook the fact of the existence of those who enter­
tain such opinions. Many of them have secretly cherished a hope that by
degrees a sufficient quantity of the precious metals could be accumulated
among us at once to take the place of a discredited paper medium, without the
hazard of any convulsion. These persons do not appear to have sufficiently
considered the difficulty in the way of changing the proportions in which
the limited supply existing of the precious metals is divided among the com­
mercial countries of the world ; nor the constant tendency of the paper of
this country to increase itself in a threefold ratio to the increase of those
metals. There is no subject which will less patiently admit of quack treat­
ment than money. If the majority will persist in seeing things in a light
which is not a natural one, and will base their action upon it, the only con­
sequence must be, that the prosperity of the community of which they are a
part, will be made to pay the penalty of their disregard of the truth.
W e know it will not be a very consoling idea to most of our readers, to
imagine that matters will have to be a great deal worse before they can be
permanently better. Yet such, in our humble opinion, is the only conclusion
we can arrive at in the present moment. This is emphatically the age of
experiment in most things, but particularly so in currency and banking;
and this age must be worked through before the true principles—whatever
these may be—can be expected to prevail. The process may be a very severe
one—it has been so already—but there are intervals from pain frequently to
be expected which will materially relieve the exhaustion attending the ope­
ration. The principle of life is strong in the body politic, and will bear a
great deal of clumsy and even cruel treatment without sinking; and there is
no danger but that whenever it shall choose to say the ivord, it may be
brought back to the condition of health and prosperity which it has hereto­
fore enjoyed.

C a s h P u r c h a s e s .— From the great and unavoidable losses sustained by
the “ credit system,” a man who has ready money can buy with immense
advantage to himself, by always paying cash for his goods. If, in addition
to this, he has sufficient cash in hand to defy the larger houses, and will sell
“ for cash only,” he may realize a fortune in a few years. Once let an estab­
lishment be noted for “ cheap bargains,” and purchasers will flock to it as
instinctively as sharks to a ship!
I recommend to you to deal only with those merchants who have the
fairest characters, and are in the best established circumstances.
Such persons are always able to sell cheaper, and if you require it, to give
longer credit than persons of less standing in the world; besides this, their
reputation is of more value to them than to run the risk of committing, or
conniving at, a fraudulent action. Moreover, they keep generally a larger
stock of goods than smaller dealers, thus affording you a better variety to
choose from.— Foster.




518

Mercantile Law Cases.

M E R C A N T I L E L A W.
A r t . IX.— M E R C A N T IL E LA W CASES.
C O L L E C T IO N OF D E B T S ---- POOR

D E B T O R S .---- COMM ISSION

M E R C H A N T S ----

SU PE R CA R G O ES.----P R O M ISSO R Y N O T E S ---- FR A U D ---- P A Y M E N T . ---- SALVAGE
---- F R A U D U L E N T COMPACT.---- B I L L S OF E X C H A N G E .----U SU R Y .-----C O L L E C ­
T O R OF CUSTOMS.---- C H E A T I N G BY FA L SE P R E T E N C E S . ---- G E N E R A L
A V ER A G E.---- B IL L S OF E X C H A N G E ---- R I G H T S OF C O R P O R A T I O N S .---- CASE
OF SALVAGE FO R S E R V I C E S R E N D E R E D BY O N E W H A L E R TO A N O T H E R .
C O L L E C T I O N OF D E B T S ----PO O R DEB TO R S.

I t is our intention to obtain for the Merchant’s Magazine, as soon as the
necessary arrangements can be made, accurate and condensed accounts of the
laws respecting debtor and creditor in the several states, and in England.
The utility of a series of articles of this kind, is obvious; and it is equally
evident, that our plan cannot be carried out immediately. W e mention this,
because we may often allude to the means of collecting debts in different
states, in a manner less full and complete than it is our intention to do ulti­
mately, and which may still be useful and acceptable to our readers. W e
are reminded of this subject by a trial which recently took place in Boston.
It was an action brought by John Wilson against E llis G. Blake, and was a
case in which the plaintiff made charges of fraud against the defendant in
concealing his property from his creditors.
The jury returned a verdict in favor of the defendant. The details of the
case are of no public interest, and we mention it principally for the purpose
of calling attention to a provision in the revised statutes of Massachusetts,
which, we are led to believe, is somewhat peculiar.
By the 27th section of the 98th chapter of the revised statutes, it is provided,
that when any debtor shall give notice of his intention to take the oath before
provided for poor debtors, the creditor may allege against him certain spe­
cific charges of fraud, upon which either party may have a trial by jury.
The charges must be fully, plainly, and formally set forth in writing, and
be signed by the creditor, and he must make oath that he believes them to
be true.
The only fraudulent acts which the creditor shall be allowed to charge,
are the following:
First, that since the debt was contracted, or the cause of action accrued,
the debtor has fraudulently conveyed or concealed, or otherwise disposed of,
his estate, or some part thereof, with design to secure the same to his own use,
or to defraud his creditors; or,
Secondly, that since the debt was contracted, he has hazarded and paid
money or other property to the value of one hundred dollars, or more, in
some kind of gaming prohibited by the statutes of the commonwealth; or,
Thirdly, that he has wilfully expended his goods and estate, or some part
thereof, for the purpose of enabling himself to swear that he has not any
estate to the amount of twenty dollars, except such as is exempted from being
taken in execution; or,




Mercantile Law Cases.

519

Fourthly, if the action was founded on contract, that the debtor contracted
the debt with an intention not to pay the same.
The creditor cannot upon the trial give evidence of any charges of fraud,
not contained in his statement, nor of any supposed fraudulent acts of the
debtor, committed more than three years before the commencement of the
creditor’s original action.
If the debtor be found guilty of any of the above named charges, he shall
have no benefit of the poor debtor law, and he shall moreover be sentenced
to confinement at hard labor, in the county jail, or house of correction, for a
term not exceeding one year, according to the circumstances of the case.
W e have never heard of a conviction under the above statute, and we be­
lieve the present case is the first that has ever been tried in Boston.
CO MM ISS ION M E R C H A N T S ----SU P E R C A R G O E S .

The United States Circuit Court in Boston, was occupied several days
last month, in the trial of the action of Forestier v. Bordman, which invol­
ved principles of great interest and importance in a mercantile point of view.
It was an action of assumpsit, brought by the plaintiff, a merchant of
Batavia, to recover of the defendant, a merchant of Boston, $1637 00, the
amount advanced by the plaintiff on a sale of flour made by him for the
defendant on a credit, the purchaser having become insolvent.
It appeared in evidence, that in the year 1830, the defendant shipped in
the Shylock 1000 barrels of flour, and placed it in the keeping of Mr.
Stephen H. Williams, as supercargo. The vessel sailed for Rio Janeiro,
and 775 barrels of the flour were there sold. She then put into Montevideo,
but the state of the market being very unfavorable, the supercargo concluded
to carry the balance to Batavia. He did so, and requested the plaintiff to
sell it, and invest the proceeds, together with the proceeds of that sold in
South America, for the benefit of the shipper. The market was glutted,
and the flour was somewhat damaged, but it was sold by the plaintiff to one
Johannis, on a credit of six months, and the proceeds, deducting the interest,
was invested in coffee, which was shipped to the defendant, and by him
received. No guaranty commission was charged in the account of sales,
and Mr. Williams had no knowledge that the flour was sold on a credit of
six months until after the sale was made.
After the coffee had been shipped to the defendant, Johannis, to whom the
flour was sold, became insolvent, and the plaintiff not being able to obtain
payment from him for the flour, claimed in this action to recover of Bord­
man the amount of the advance.
The principal point in the case was, whether the plaintiff or the defendant
should suffer by the failure of Johannis, or, in other words, whether the
sale made by the plaintiff was at his risk or at the risk of the defendant—
the defendant contending that the plaintiff had no right to make a sale on
credit. There were some other points in the case of minor interest, and
many witnesses were examined.
Judge S t o r y charged the jury, that the supercargo had a perfect right
to carry the flour round to Batavia if he found it impossible to effect a sale
in the ports contemplated by the parties, because when any emergency
happens which was not contemplated by the parties, the supercargo is
bound to act upon his best judgment. And whether Williams had or had
not a right to carry the flour to Batavia, the fact that Bordman received the
coffee without objection, was a confirmation of the transaction.




520

Mercantile Law Cases.

The next question was, whether the plaintiff had a right to sell the flour
on a credit of six months. On this point the rule of law was, that a com­
mission merchant has a right to sell on a credit, if the usage at the port
authorizes a sale on credit. The jury were to determine whether it was
customary to sell on credit at Batavia. If it was, tlien the plaintiff had a
right to do so unless he was specially directed in what manner he was to sell.
Then, at whose risk was the sale actually made? The law was explicit,
that where there is a usage of trade authorizing a sale on credit, and a sale
is so made, it is at the risk of the shipper, unless there be some usage or a
special agreement to the contrary. In this case the sales were not guaran­
tied, and as sales in Batavia often were guarantied, the presumption was
that Mr. Forestier did not intend to be responsible for the price of the flour
sold to Johannis.
In regard to another point of defence, that the plaintiff was guilty of
negligence in not recovering the debt of Johannis, the jury must judge from
all the circumstances of the case, bearing in mind that a commission mer­
chant was not bound to sue immediately on a claim becoming due. He
must be governed by his best judgment under the circumstances.
It had been argued that the plaintiff was in fault in not giving the defen­
dant early notice of the failure of Johannis; but the defendant could have no
advantage of this unless he had proved that a change of circumstances had
taken place, or that he had suffered some actual injury from the want of
notice.
The jury returned a verdict for the plaintiff
After the verdict was rendered, Judge S t o r y remarked, that a more
important case in a mercantile point of view, had not been tried before him
for a long time.
P R O M ISSO R Y N O T E S ---- FR A U D ---- P A Y M E N T .

In the Court of Common Pleas in Boston, on Tuesday, October 29th,
the case of the American Bank v. John S. Jenness and others, was an action
of assumpsit on a promissory note for $4000, dated July 13th, 1836, paya­
ble on demand, and signed by the defendants. This note was lodged as
collateral security with the plaintiffs by Grant, Seaver, & Company, previ­
ous to their failure.
The defence was, that the note had been paid by the defendants nearly a
month before it was lodged with the plaintiffs by Grant, Seaver, & Co., to
wit, on the 21st of February, 1837 ; and that it was put into circulation by
G., S., & Co., without the knowledge or consent of the defendants.
To prove that the note had been paid as above, Mr. Grant was put upon
the stand as a witness, although objected to by the plaintiffs.
The counsel of the plaintiffs argued to the jury, that the note not having
been taken up by the defendants, and nothing appearing on the face of it to
show a payment, a transfer of it by the payees under such circumstances, to
an innocent endorsee, would hold the defendants. The plaintiffs had taken
the note on the strength of the defendants’ names. There was nothing on
the note unusual for an unpaid note, and consequently nothing to put the
plaintiffs to an inquiry whether it had been paid. That the circumstances
of the case were such as to warrant the jury in the conclusion, that it was
the intention of the parties that the note should be re-issued, and that to sup­
pose the contrary would be to impeach very essentially the integrity of the
persons who passed the note to the American Bank.




Mercantile Law Cases.

521

Chief Justice W i l l i a m s instructed the jury, that if the defendants had
once paid the note, it could not be revived by being' again put into circula­
tion, unless the defendants had put it into circulation or had consented to it;
and their consent might be express or implied. The loss in the present
case must fall on the party who had been in fault. But the defendants had
not been guilty of such neglect, by merely not taking the note up when
they paid it, as was sufficient, of itself, to hold them now. The plaintiffs
must make out something stronger; they must satisfy the jury that the defen­
dants gave either an express or an implied consent to the note being put into
circulation after it was paid.
The jury were unable to agree. It is said that they stood 10 to 2 in
favor of the plaintiffs.
SALVAGE----F R A U D U L E N T COMPACT.

In the United States District Court, in Boston, on Friday, 11th ult., the
case of the Merchants' Insurance Company o f Boston v. Asa Seller, was a
libel in the Admiralty, in behalf of the owners and insurers of the ship Bom­
bay and cargo, against the first mate of that ship, to recover a sum of money
alleged to have been paid to him by the salvors of the vessel, which got on
shore, and was carried into Key West in February, 1838.
The libel charged, that $1000 was so paid to the captain, $300 to the first
mate, and $200 to the second mate. That it was paid in pursuance of a
corrupt understanding between the salvors and officers, and with a view to
influence the testimony of the latter, and to inflame the salvage, &c.
The captain paid the amount received by him, when demanded by the
agent of the insurers. The second mate being out of the country was not
served with process, and the suit proceeded against the first mate alone.
He filed an answer, admitting the receipt of the money, but denying any
fraud, or agreement, between him and the salvors, and alleging that the
money was given him from motives of compassion, and in consideration of
his unfortunate condition.
The court gave judgment for the libellants, for the sum received by that
officer, three hundred dollars, and costs. The reception of the alleged sums
of money from the salvors, by the officers of the wrecked ship, under the
circumstances in which the property committed to their charge was placed,
was holden by the court to be altogether inadmissible. The transaction was
pronounced to be of novel and exceptionable character; that with the aspect
of charity and benignant consideration, it placed the officers of the ship in a
position in reference to the claims of salvage, then in controversy, incompati­
ble with their dutiful relations to the ship and cargo, and to owners and
underwriters.
B ILL S OF EXCHANGE.

In the case of Andrews v. Pond, decided in the Supreme Court of the
United States, at the last term of the court, it was held that a person who takes
a bill, which on the face of it was dishonored, cannot be allowed to claim the
privileges which belong to a bona fide holder without notice. If he chooses
to receive it under such circumstances, he takes with it all the infirmities
belonging to it; and is in no better condition than the person from whom he
received it. There can be no distinction in principle, between a bill trans­
ferred after it is dishonored for non-acceptance, and one transferred after it
has been dishonored for non-payment.
VOL. i. —

no.

v i.




66

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Mercantile Law Cases.
USU RY.

In the same case above mentioned, the court also decided that there is no
rule of law fixing the rate which may be charged for exchange. It does
not depend on the cost of transporting specie from one place to another,
although the price of exchange is no doubt influenced by it.
C O L L E C T O R OF CUSTOMS.

In the case of Bend v. Hoyt, decided in the Supreme Court at Washing­
ton, and reported in the last volume of Peters’s (N. S.) Reports, the court
held
1. That even courts of equity will not interfere to assist a party to obtain
redress for an injury which he might, by ordinary diligence, have avoided.
And, a fortiori, a court of law ought not, when the other party has by his
very acts and omissions lost his own proper rights and advantages.
2. A collector is generally liable in an action to recover back an •excess
of duties paid him as collector, when the duties have been illegally demand­
ed, and a protest of the illegality has been made at the time of payment, or
notice given that the party means to contest the claim. Nor is there any
doubt that a like action generally lies, where the excess of duties has been
paid under a mistake of fact, and notice thereof has been given to the col­
lector before he has paid over the money to the government.
FR A U D .

The party selling property must be presumed to know whether the repre­
sentation which he makes of it be true or false. If he knows it to be false,
that is fraud of the most positive kind; but if he does not know it, then it can
only be from gross negligence; and, in contemplation of a court of equity,
representations founded on a mistake resulting from such negligence are
fraud. The purchaser confides in them upon the assumption that the owner
knows his own property, and truly represents it. And it is immaterial to
the purchaser whether the misrepresentation proceeded from mistake or
fraud. The injury to him is the.same, whatever may have been the motives
of the seller. The misrepresentations of the seller of property, to authorize
the rescinding of a contract of sale by a court of equity, must be of some­
thing material, constituting an inducement or motive to purchase; and by
which he has been misled to his injury. It must be in something in which
the one party places a known trust and confidence in the other.— 13,
Peters's Reports, 26.
C H E A T I N G BY FA L SE P R E T E N C E S .

W e formerly alluded to a law in force in Massachusetts, respecting cheat­
ing by false pretences. A case was recently tried in the Boston Municipal
Court, in which a somewhat novel question arose, wThich will render it neces­
sary for the merchants in that state to be cautious as to whose credit they rely
upon in selling goods; whether they rely wholly on the credit of the pur­
chaser, as he asserts it, or on the representations of others respecting his
credit.
The trial to which we allude, is that of Jonathan S. Fitts, who was charged
with obtaining one thousand dollars worth of goods from Milton Slocum,
merchant tailors, of Boston, in October, 1835. Fitts lived at Braintree, Ver­
mont, and was a pedler, and represented he had unincumbered real estate in




Mercantile Law Cases.

523

Braintree, of the value of two thousand dollars, and was worth one thousand
five hundred dollars besides, and owed but eight hundred dollars. In No­
vember, 1835, he conveyed his real estate to Colonel Hutchinson, and it was
in fact under mortgage at the time, and was worth but four hundred and fifty
dollars, over the mortgage. In January, 1836, he fled to Canada, writs
being against him, where he worked as ostler in a tavern. The Canada
troubles came on, and he went to Western New York, where he was arrested
on this charge. He then worked on a farm at the halves. He owed about
two thousand dollars in Boston, and between two and three thousand dollars
in New York, and other debts in Braintree, none of which have been paid.
He offered some evidence of his property as it was in October, 1835, and that
it was not over valued then by him. When he applied to Milton & Slocum
for credit, he referred them to Col. Hutchinson and Mr. Kidder, his neigh­
bors, then in Boston, both of whom fully recommended him as worthy of cre­
dit, etc. After this recommendation, the goods were sold to him. Milton
& Slocum testified they sold the goods on his representation, and inquired of
Kidder and Hutchinson as to his character for truth and honesty, to ascertain
if they could rely on his statement. Kidder and Hutchinson testified to
declarations of Milton that he sold the goods to Fitts, wholly on the recom­
mendation of Colonel Hutchinson. The defendant’s counsel asked the judge
to instruct the jury, that if there were a fraudulent misrepresentation by the
defendant, yet if the goods were sold wholly or principally on the recom­
mendation of others, the case was not within the statute, as the defendant did
not obtain the goods by his false pretences, but by the recommendation of
Kidder and Hutchinson. Mr. Parker, the prosecuting officer, replied on
Chief Justice Savage’s doctrine, in 13 Wendell, 91: “ It is enough, if the
false pretence had a controlling influence on the vendors,” and also on Judge
Nelson’s opinion, in 11 Wendell, 567".
The jury acquitted the defendant, as it is said, on the point that the goods
were delivered rather on Hutchinson’s recommendation, than on the prison­
er’s false pretences.
G E N E R A L A V ER A G E.

In the case of the Columbian Insurance Company o f Alexandria v.
Ashly and others, decided last winter, at Washington, it appeared that the
brig Hope, with a cargo, bound from Alexandria, in the District of Columbia,
for Barbadoes, insured in Alexandria, was assailed, while standing down the
Chesapeake bay, by a storm which soon after blew to almost a hurricane.
The vessel was steered towards a point in the shore for safety, and was an­
chored in three fathoms water; the sails furled, and all efforts were made,
by using the cable and anchors, to prevent her going on shore. The gale
increased, the brig struck adrift, and dragged three miles; the windlass was
ripped up, the chain cable parted, and the vessel commenced drifting again,
the whole scope of both cables being paid out. The brig then brought up
below Craney island, in two and a half fathoms water ; where she thumped
or struck on the shoals on a bank, and her head swinging round brought her
broad side to the sea. The captain finding no possible means of saving the
vessel and cargo, and preserving the lives of the crew, slipped her cables,
and ran her on shore for the safety of the crew and preservation of the vessel
and cargo. The vessel was run far up on a bank; where, after the storm,
she was left high and dry, and it was found impossible to get her off The




Mercantile Law Cases.

524

lives of all the persons were saved ; the whole cargo, of the value of $5335
insured for $4920, was taken out safely, and the vessel, her tackle, etc., we're
sold for $256. The court decided, that the insurers of the cargo were lia­
ble for a general average.
B IL L S OF E X C H A N G E ----B I G H T S OF C O R P O R A T IO N S.

Several months ago, there was much excitement in the mercantile com­
munity occasioned by a decision in Alabama, respecting the rights of a cor­
poration, created by one state, to recover on bills negotiated in another state.
That case, as we learn from the last volume of Peters’ (N. S.) Reports, p.
519, was an action which was instituted in the Circuit Court of the United
States for the district of Alabama, by the Bank o f Augusta, Georgia, against
the defendant, Joseph B. Earle, a citizen of Alabama, on bills of exchange
drawn at Mobile, Alabama, on New York, which had been protested for
nonpayment, and returned to Mobile. The bill was made and endorsed for
the purpose of being discounted by the agent of the bank, who had funds in
his hands belonging to the plaintiffs, for the purpose of purchasing bills of
exchange, which funds were derived from bills and notes discounted by the
bank in Georgia. The bills were discounted by the agent of the hank in
Mobile, for the benefit of the bank, with their funds, to Temit the said funds
to the bank. The defendant defended the suit on the facts that the Bank of
Augusta is a corporation, incorporated by an act of the legislature of Georgia,
and has power such as is usually conferred on banking institutions, such as
to purchase bills of exchange, etc. The Circuit Court held that the plain­
tiffs could not recover on the bills of exchange, and that the purchase of the
bills by the agent of the plaintiffs was prohibited by the laws of Alabama,
and gave judgment for the defendant.
In another case, that of the United States Bank o f Pennsylvania v.
Primrose, the plaintiffs, a corporation by virtue of a law of the state of Penn­
sylvania, authorized by its charter to sue and be sued in the name of the cor­
poration, and to deal in bills of exchange, and composed of citizens of Penn­
sylvania, and of the states of the United States, other than the state of Alaba­
ma, (the agent of the bank resident in Mobile, and in possession of funds
belonging to the bank, and intrusted with them for the sole purpose of pur­
chasing bills of exchange,) purchased a bill of exchange, and paid for the
same in notes of the branch of the Bank of Alabama, at Mobile. The bill
was protested for nonpayment, and a suit was instituted in the Circuit Court
against the payee, the endorser of the bill. The question for the opinion of
the Circuit Court was, whether the purchase of the bill of exchange by the
United States Bank was a valid contract, under the laws of Alabama. The
Circuit Court decided, that the contract was void, and gave judgment for the
defendant.
There was another case: the New Orleans and Carrolton R a il Road
Company v. Earle, which was similar to the one first above mentioned.
The Supreme Court of the United States at Washington, last winter,
after solemn argument by the most distinguished lawyers in the country,
reversed the judgment of the Circuit Court in the three cases, and held the
contracts for the purchase of the bills valid, and that the plaintiffs acquired
a legal title to the bills by the purchase.
The court said it was very true that a corporation can have no legal exist­
ence, out of the boundaries of the sovereignty by which it is created. It




Mercantile Law Cases.

525

exists only in contemplation of law, and by force of the law, and where that
law ceases to operate and is no longer obligatory, the corporation can have
no existence. It must dwell in the place of its creation, and cannot migrate
to another sovereignty. But although it must live and have its being in that
state only, yet it does not by any means follow, that its existence there will
not be recognised in other places, and its residence in one state creates no
insuperable objection to its power of contracting in another. It is indeed a
mere artificial being, invisible and intangible, yet it is a person for certain
purposes, in contemplation of law, and has been recognised as such by the
decisions of the Supreme Court. It is sufficient that its existence as an arti­
ficial person, in the state of its creation, is acknowledged and recognised by
the law of the nation where the dealing takes place, and that it is permitted
by the laws of that place, to exercise there the powers with which it is
endowed.
Courts of justice have always expounded and executed contracts, made in
a foreign country, according to the laws of the place in which they were
made, provided that law was not repugnant to the laws or policy of their
own country*
It is well settled, the court say, that by the law of comity among nations, .
a corporation created by one sovereignty is permitted to make contracts in
another, and to sue in its courts, and that the same law of comity prevails
among the several sovereignties of this union. The public, and wellknown and long-continued usages of trade, the general acquiescence of the
states, the particular legislation of some of them, as well as the legislation
of congress, all concur in proving the truth of this proposition.
CASE OF SALVAGE FOR S E R V I C E S R E N D E R E D BY ONE W H A L E R
TO A N O T H E R .

An interesting case of this kind has lately come before the British Ad­
miralty Courts. It was a suit against the Swan, whaling vessel, of Hull,
to obtain a remuneration for salvage services. The Swan was one of the
vessels frozen up in Davis’s Straits, in October, 1836, for the rescue of whose
crews bounties were offered by the Treasury. Several vessels went out in
consequence, of -which number was the Princess Charlotte, of Dundee,
which discovered the Swan, on the 14th May, 1837, fixed in a floe of ice,
with only nine days’ provision on board, many of the crew dead, and most
of the survivors confined to their berths by scurvy. With the assistance of
boats from two other vessels, the Dorothy and the Heroine, the salvors
(making about forty men) cut a channel through the ice, three hundred and
seventy-six yards long and twenty-six broad, the average thickness of the
mass being three or four feet, and (by two days and nights’ incessant labor)
the vessel was extricated, her crew being unable to assist. The value of the
property salved was £3.439.
Addams, D., and H arding, D., for the salvors. The bounty given by
the Treasury, for the saving the lives of the crews, and the alleged custom
amongst whale ships to render mutual assistance to each other, do not bar
* See the case of Peters v. Warren Insurance Company of Boston, on page 5D of this
Magazine. W e take occasion to correct an error made in the report of that case, in
the'statem ent that the decision of Judge Story had been affirmed by the Supreme
Court of the United States. The case has been carried up to that court, but has not
yet been decided taere.




526

Mercantile Law Cases.

the salvors, in such a case, from claiming remuneration for salving the
property.
The Queen's Advocate and Curteis, D., for the owners! It is a custom,
sufficiently established by evidence, that in the whaling trade, services,
small or great, are rendered by one vessel to another mutually and gratui­
tously. If this custom is not upheld, the insurance of such vessels would
be difficult if not impracticable. There never has been a case in which one
whale ship sued another, except the Margaret, ('4 Hagg. 48,) in which this
custom was alleged, but the Court decided the case on another point, namely,
that no service had been rendered.— Though the bounty paid by govern­
ment did not destroy a claim for salvage, yet the Court would not give the
same amount of salvage as if no bounty had been received. No danger
had been incurred by the salvors, and the ice would have broke up of itself
and liberated the vessel.
Dr. Lushington. There seems to be very little dispute as to the real
facts of this case.
The vessel proceeded against was unfortunately beset
by the ice in October 1836, in Davis’s Straits, and had the good fortune to
be rescued from the situation in which she was placed, in the May fol­
lowing, by the exertions of these persons, stated to be salvors, with the
assistance of the boats of two other vessels, which do not appear in the
suit. There is no doubt whatever, that, in ordinary circumstances, the
services of the asserted salvors would be entitled to receive a remunera­
tion in the nature of salvage, unless their claim is estopped by a legal
bar in the nature of a custom or practice binding on the parties employ­
ed in salving this vessel, the Swan.
And in the Act on Petition it is
stated, at considerable length, that it is the invariable custom for the ves­
sels engaged in these fisheries to render any species of assistance to each
other gratuitously, and it goes on to state that the master of this particu­
lar vessel was induced to accept the service rendered, by a reliance on
this custom.
W ith regard to the custom itself, it is not. altogether denied in the cause;
because it is admitted by the salvors that, in respect of services of this sort,
they are rendered by one vessel to another gratuitously; and there is a con­
siderable body of evidence, on the part of the Swan, to establish the aver­
ment contained in the Act on Petition. But I do not intend to give any
opinion as to the existence of this custom, because I think it is no part of my
duty to determine whether this is a legal and valid custom or not, unless the
circumstances of the case especially require me to decide the point. It is
called a “ custom,” but it is, legally speaking, only a practice in the nature of
a custom,—being no other than a custom of trade. It cannot be said that it
is a custom which has continued from time immemorial. It is a practice
entitled to the greatest possible w eight; and supposing it to apply to this
case, it is a custom which, in my opinion, ought to be upheld; and certainly
customs of this description would not be overruled by me, notwithstanding
that in one or two or three or more instances the custom may not have been
observed. But it is different from a continued custom ; it is a usage allowed
to prevail, though not universal. The custom is founded on a principle of
mutual benefit and the protection of property ; because the assistance ren­
dered by one vessel to another may be requited upon another occasion. I
think it does not stand on the same principle as common cases of the kind ;
but such services can be rendered by one party to another, not only without
prejudice, but with great advantage, to the general interests. To the extent,




Mercantile Law Cases.

527

therefore, of ordinary cases, I must not be understood as saying any thing
against the validity of this custom; but I should think it carried to an ex­
travagant extent if it barred the claim of parties where a service had been
attended with great risk and skill, and where the parties rendering the ser­
vice had been put to great expense: an award of salvage in such a case
would not invalidate the custom in other respects.
But the question is, assuming the custom to exist, can it apply to the cir­
cumstances of the present case ? I think there is a material distinction ; be­
cause the Swan, having been detained in the ice during the whole winter,
had not embarked at this time in the operation of any joint enterprise with
the other vessels; and the foundation of the custom is, that the parties were
embarked in one common enterprise, and whatever service is rendered by
one to another, is mutually rendered— dant accipiuntque vicissim. But
the Swan, being in a situation of great danger at this period, could not par­
take of this joint enterprise, and it is quite impossible that she could have
rendered assistance to any other vessel whatever. And if I were to hold
that the custom applied in this case, see the consequences : I should thereby
take away all hope of assistance being rendered to a vessel in the same situ­
ation the Swan was placed i n ; for I should take away the motive for ren­
dering the assistance, that is, a hope of reward. So let it not be under­
stood that [ gainsay the custom : within certain limits, it is a wise and
just and proper custom; but the circumstances of this case are peculiar,
and the custom cannot be universally applied.
The matter being so, I am to consider what is the nature of the ser­
vice, and what is the proper amount of the reward ? And I am now
to consider a point, intended to be pleaded in bar, only in the way of a
diminution of the salvage, that the Princess Charlotte, the Dorothy, and
the Heroine, have already been rewarded for the service, and that the
reward is of the nature of salvage. It is admitted that the offers of the
Treasury were for the preservation of the lives of the persons detained
in the ice; and no doubt the object of the Treasury was the rescue of
human life, and the motive of the application made to the government
for assistance was founded on the risk to which the lives of the sailors
on board the vessels were exposed.
So far, therefore, as relates to the
bounty for early sailing, I shall not be justified in taking that into my
consideration in allotting the quantum of salvage; but with regard to de­
murrage and the payment for stores, supposing the Court should be cal­
led upon to allot any thing on this account, and for loss or damage of
stores, I should be clearly of opinion that the owners of the vessels had
been already indemnified for that loss, and I should consider that they are
not entitled to be remunerated for demurrage or for stores.
Now I am to look at the service itself; and though I do not mean to en­
ter minutely into a consideration of the details of the service, it was a ser­
vice efficiently rendered, and I am clearly of opinion that the service was
absolutely necessary, not merely for the preservation of the lives of the per­
sons on board the Swan, but for rescuing the ship itself from various dan­
gers. It is stated that from the near approach of summer, it was probable
that the ice would have been dissolved, and the ship might then have been
got into a place of safety. But when I look at the protest made by Dring,
the master, and the others who have signed it, I confess I could only come
to a contrary conclusion. In the first place, I think it would have been
difficult for Mr. Dring to have rescued the vessel from the situation of peril




528

Mercantile Law Cases.

in which it was placed by any exertion that could have been made by the
crew, so perfectly disabled as they were by scurvy during their long con­
finement. In the next place, the want of provisions would have made it im­
possible that any thing effectual could have been done by the vessel. And
Dring himself, in his protest, represents the vessel as in very considerable
danger. I think, therefore, that, even supposing it to be true that the weather
would have dissolved the ice, and set the ship free, the probability is that the
crew would have been unable to navigate her, and there would have been a
chance that the ship and stores and oil would have been entirely lost to the
owners.
In order to enhance the merit of the service, it has been stated that con­
siderable loss was probably experienced by the salvors from the delay in
prosecuting the whale-fishery, in which these vessels were all engaged; and
with reference to this it is said that only two whales were caught by the
Princess Charlotte, whereas, it is in evidence that, during that period, a large
number of whales were taken by other vessels. But the question does not
properly rest on this ground; it is not the incidental circumstance of two
whales or twenty whales being captured which is to govern the question ;
but this: What, under all the circumstances, is the probable amount of pro­
fit lost by the vessels so engaged in this salvage service, in consequence of
being deprived of their boats and crews during this time ? They were not
altogether disabled from following the whale-fishery, though it might not be
so effective.
It is not an easy matter to collect what would have been
the probable gain to these vessels ; but in allotting the salvage I am about
to assign, I must consider it probable, that, during that period, a certain
quantum of benefit might have been enjoyed, which was lost by their being
engaged in this service, and which so far diminished the profits of the vessels.
Tne only other circumstance which I think it necessary to advert to is
th is: the considerable delay that has taken place in making the demand,
and I must say that it is a circumstance which has no small consideration
with me. I must consider that, if the demand was founded in justice, it
should have been made before. The Princess Charlotte arrived in this
country in October 1837, and the owners might have proceeded in this suit
at a much earlier period than they did.
I have been told that negoti­
ations were going on; but that is no satisfactory excuse.
If a salvage
service was rendered, the salvors were entitled to come to the Court for
a salvage remuneration, and they might have brought their case before
the courts in less than fifteen or sixteen months.
Looking to all the facts of the case, I am of opinion that a very con­
siderable service has been rendered, and I think I do not go too far if I
allot £700 for salvage.
Addams, D. W ill the Court have the goodness to settle the propor­
tion between the ships ?
The Court. I had determined the apportionment. The sum I have
allotted is £700.
I think the Princess Charlotte ought to have £300,
and the other two vessels £200 each.




Mercantile Library Association Lectures.

529

A rt . X. — N E W Y O R K M E R C A N T IL E L IB R A R Y ASSOCIA­

T IO N L E C T U R E S.
T he regular course of lectures of this highly useful and flourishing
institution, commenced on the second of November, with an introductory
discourse from Professor Olmsted, of Yale College, on the mutual dependance of science and the arts, or the reciprocal benefits to be derived from an
intimate local connexion of those two great departments of human labor.
In pursuance with our original plan, we shall furnish our readers with
reports of all the lectures of the course to be delivered, which have a direct
or indirect bearing upon commercial pursuits, or which we conceive to be
of general utility.
By reference to the programme of the lectures in our last number, it will
be perceived that the course for the present season differs materially from
any previous course, it having been judiciously determined by the mana­
gers, that a full course upon any given subject, would be much more condu­
cive of instruction than single detached lectures, which must of necessity,
for the most part, afford but a vague and cursory idea of the subjects under
discussion.
The present course, therefore, commences with ten lectures on Meteoro­
logy, by Professor Olmsted, and presents an opportunity seldom afforded,
of acquiring an intimate acquaintance with the wonderful phenomena of that
subtile fluid by which we are environed.
IN T R O D U C T O R Y L E C T U R E .

The Connexion o f Science and the Arts.
Professor Olmsted commenced, by observing that one of the most striking
characteristics of the present age, was the adaptation of science to the wants
and understanding of the people. In former times, the now popular stu­
dies of natural philosophy, astronomy, and chemistry, were a sealed book to
all but a few of the initiated in those seemingly abstruse and mysterious sci­
ences. But at the present day, from the increased diffusion of knowledge of
every kind, and especially from the establishment of institutions like the pre­
sent, an acquaintance with those useful and interesting subjects, was placed
in the power of every individual.
To our distinguished countryman, Dr. Franklin, Professor Olmsted
assigned the honor of havijig first established a course of popular lectures,
and also of being among the first to render a knowledge of the sciences sub­
servient to the uses and welfare of even the humblest individual. Lord
Bacon was the first, however, who taught that “ a principle in science was
a rule in arts,” and later philosophers have made rapid strides during the
last one hundred years, in verifying the truth of his maxim and developing
its astonishing results.
Previous to the great reformation in the physical sciences, their votaries
had not for the object of their researches, the increasing the general happi­
ness and comfort of the human race. Astronomy was cultivated from its
connexion with astrology— chemistry from its connexion with alchemy.
But Dr. Franklin, and another distinguished American philosopher, Count
Rumford, sought the happiness of society; their exertions were directed
toward increasing the comforts, and as a necessary consequence, elevating the
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character of the lower and middling classes of the community, and the efforts
of the latter were crowned with such distinguished success, that the poor of
Bavaria called him blessed, and all ranks and conditions united in their
testimony, to the wonderful changes he had wrought in the condition of the
lazzaroni of Munich. Count Rumford was a native of Woburn, Massa­
chusetts, and was ennobled by the king of Bavaria for his services in reliev­
ing his kingdom from vagrant mendicants, and their inseparable abuses.
He was also the founder of the Royal Institution in London, where lectures
are annually delivered to persons of both sexes, it having been the first
establishment of the kind attended by ladies. Lord Brougham, and other
distinguished savans, continued the efforts of Franklin and Rumford, but to
those distinguished Americans must be assigned the honor of having “ set
the ball in motion.”
Colleges, observed Professor Olmsted, have been considered by many, as
hostile to the general diffusion of knowledge. This he thought was an
error, for they have the deepest interest in the general intelligence of every
class. No literary institution can flourish unless in an intellectual commu­
nity ; in a congenial atmosphere. When commotions and dissensions arise,
we look to the educated and intelligent to calm the fury of mobs, and restore
society to its equilibrium. From a principle of self-preservation, therefore,
if from no higher motive, colleges beheld lyceums, and similar institutions,
in a very favorable light.
As an example of the intimate connexion between the sciences and the
arts, Professor Olmsted instanced the manufacture of that iqjnute, though
useful instrument, a needle. The crude ore must first be extracted from the
depths of the earth, and then smelted and forged by ponderous machinery.
From the incipient steps to the final results, the knowledge of how many differ­
ent sciences is requisite. Metallurgy, natural philosophy, chemistry, the ex­
pansive force of steam, and the adaptation of machinery to water, or other mo­
tive powers. Then for its transportation over seas, ships must be built and
navigated, demanding the aid of mechanical skill and astronomy. Thus
we perceive that all labor for the mutual benefit of all. The smallest arti­
cle of daily use, cannot be furnished without the labor of many hundred indi­
viduals, and thus the creatures of the Almighty are, by his wise providence,
reciprocally dependant on each other.
Let us suppose, observed Professor Olmsted, that a tailor was obliged to
make his own needle before he could commence his work, or that any other
tradesman was compelled to manufacture the tools of his trade, it will easily
be apprehended how rude and uncouth all the arts would become.
Take another example of the connexion between the arts and sci­
ences. F or instance a piece of calico, from the cotton plantation to the dry
goods warehouse, and observe how various, how multiform, are the pro­
cesses it undergoes; all of which, it is evident, could only be performed by
persons of many different professions and trades.
To the prosperity and welfare of the mercantile class, therefore, all other
classes contributed, inasmuch as the merchants were the carriers, the buyers
and sellers of every description of production, whether domestic or foreign,
the growth of the soil, or the product of the loom or forge. It is, conse­
quently, to their advantage that all descriptions of manufactures should flour­
ish. W ith every class of the community they are indissolubly connected;
they must rise or fall together.
From the close union which is maintained between sciences and the arts,




Olmsted's Meteorological Lectures.

531

observed Professor Olmsted, it follows that the pursuit of the former cannot
be successfully prosecuted in the absence of the latter. If our philosophical
apparatus becomes deranged, our labors are suspended, perhaps for weeks,
unless we have a skilful artisan at hand to repair it. Large cities, therefore,
where every branch of industry and the arts is prosecuted, are most favora­
ble for the residence of scientific men.
In the remote settlements of our western frontier, even the building of a
house after the manner of the older states, is a work sometimes of months.
All the materials are to be sought with much labor, workmen to be obtained
from a distance of several miles, and even when everything seems prepared,
you are often delayed for the want of some trifling, yet essential requisite.
In conclusion, Professor Olmsted enjoined his hearers to cultivate a love
of reading, and a knowledge of the sciences, while youth and opportunity
are afforded; then, when old age comes upon us, we can retire from the
scenes of active life, serene and happy, conscious of resources within our­
selves which will alleviate the cares of this world, and, wi:h the assistance of
religion, lighten the pathway to eternity.
LECTURE

i.

O f the Atmosphere in general.
Geography, geology, and meteorology, are the sciences which enable us
to acquire an accurate knowledge of the earth.
In the present course of lectures, observed Professor Olmsted, the latter
science would alone be treated upon.
Meteorology, he defined to consist in a general survey of the atmosphere,
both of the upper and lower regions : to include a knowledge of winds,
storms, dew, fogs, hail, thunder, aurora borealis, and fiery meteors—their
origin, and the laws by which they are regulated. A subject of immense
extent and of great interest.
It might be asked, said Professor Olmsted, what advantages were to be
derived from a knowledge of the laws which regulate the aerial phenomena.
It is evident that those advantages are very great; for if we can foretell
changes in the weather with any degree of accuracy, an immense amount
of property would be annually saved from destruction.
But can we foretell the weather? Professor Olmsted thought we could,
with the same certainty as we can eclipses of the sun or moon. The rea­
sons for this belief, he would disclose in a future lecture. He would merelj
observe, in this connexion, for the present, that there were two classes of per­
sons who were peculiarly fitted for foretelling the weather, viz. philosophers
and sailors; both classes generally arriving at the same conclusions, though
by different routes. The method of the philosopher is to be preferred, since
it is susceptible of being imparted to others; while that of the sailor, consist­
ing of certain signs and appearances known only to himself, has not that de­
sirable requisite.
A law of storms was highly important, and a hope of ascertaining it was
entertained by most modern philosophers.
Professor Olmsted next proceeded to define the atmosphere, but as that is
a subject with which all our readers are, or ought to be, familiar, we shall
not allow ourselves to dwell upon those portions of the lecture which con­
sisted of the usual details upon the elasticity, expansibility, weight, density,
and compressibility of air.
We will observe, however, that the density of the atmosphere diminishes




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as we ascend from the surface of the earth, very rapidly. One half of the
atmosphere being supposed to be contained within four miles of the earth ;
one fourth of it within the next seven miles, and so rapidly diminishing in
density as we ascend.
The height of the atmosphere above the earth as deduced from twilight is
forty-nine miles—from meteors, one hundred and fifty miles; this difference
is to be attributed to the circumstance, that above the height of forty-nine
miles the atmosphere is too rare to reflect the rays of the sun, consequently
twilight does not indicate any greater height.
From circumstances attending the appearance of Encke’s comet, we have
reason to believe that an ethereal medium is diffused throughout all space,
although it must be. extremely rare above the height of fifty miles.
The temperature of the atmosphere is, as all are aware, colder the higher
we ascend. The line of perpetual congelation is, of course, different in dif­
ferent latitudes. At the equator, it is about three miles from the earth; in
our latitude, two miles; and in the polar regions, on the surface.
LECTURE

II.

Dew, Fog, and Clouds.
The inductive system of philosophy, said Professor Olmsted, is the only
true system by which we can arrive at certain results in physical science.
It consists in an accurate observation of facts, and in carefully advancing
from one set of truths to another, thus building up, as it were, a system
slowly and securely.
Dev: — To a countryman of our own, Dr. Wells, of South Carolina,
the world is indebted for an accurate and philosophical investigation of the
phenomena of dew. Dr. Wells resided in London, in the capacity of a
merchant, and it was in the vicinity of that metropolis that he prosecuted the
experiments which resulted in the establishment of a fixed and substantial
theory.
In making these experiments, Dr. Wells selected an open field in the
vicinity of London, and the instruments which he used were a thermometer,
a pair of scales, and a lock of wool. The lock of wool was for the purpose
of absorbing the dew, the scales for weighing the wool before and after the
process of absorption, and the thermometer to ascertain the temperature of
the dew thus absorbed; and with this simple apparatus did Dr. Wells deter­
mine the laws which regulate these interesting phenomena.
The facts ascertained by Dr. Wells, relative to dew, were as follows: It
begins to fall about 4 P. M .; it is most copious just before sunrise. More
dew falls on clear than on cloudy nights, more on still than on windy nights,
more on the grass than on sand, more on the land than on the w ater; on
the ocean, indeed, no dew at all falls out of soundings. On bright metallic
surfaces no dew falls, nor does it fall upon the naked skin of living animals.
From these facts, we arrive at the conclusion that dew does not fa ll from
the heavens, as we express ourselves in common parlance, but ascends from
the- earth.
The following principles are involved in the explanation of the facts we
have recorded above. The capacity of the air for moisture, is increased by
heat and diminished by cold. In a dry atmosphere, evaporation goes on
very rapidly. This every one has experienced, in the unpleasant dryness
of the skin during the prevalence of hot winds. W hen the sun is with­
drawn from the earth, the air becomes cooler, and the consequence is, that the




Olmsted's Meteorological Lectures.

533

evaporation from the earth, not being taken up and converted into vapor
with sufficient rapidity, is deposited upon its surface and forms what we
call dew.
To return to our facts mentioned above. W hy does more dew fall on
clear than on cloudy nights'? Because on the former the process of evapo­
ration taking place more rapidly than on the latter, a greater amount of
moisture arises from the earth’s surface.
W hy more on still than on windy nights? Because the tendency of the
wind is to scatter and disperse the vapors arising from the earth, and conse­
quently a less quantity is deposited.
The inequality of temperature between the earth and the air is therefore
the cause of the deposition of dew. W hy then does more fall on land than
on water ? Because the water, being a body the surface of which is not
easily heated by the rays of the sun, maintains a uniform temperature, by
day and night; consequently, no inequality of temperature between itself and
the surrounding atmosphere can exist.
From the explanations already given, the reader will easily perceive why
dew is not deposited on bright metallic substances, or on the human body.
The frugality of nature in the distribution of dew, observed Professor
Olmsted, is worthy of remark. Possessed, as it is, of highly fertilizing pro­
perties, it does not fall but where it can be of use. It does not fall Upon the
barren and unproductive sea, where it would be wasted, but upon the fruit­
ful and beneficent earth.
Fog.— The facts relative to the phenomena of fogs, are as follows: They
are more common, and of greater density, in cold than in hot climates; in
valleys than in marshes; on the sides of mountains. Fogs do not prevail in
the open sea, but on shoals, sand banks and capes, and over rivers. The
banks of Newfoundland are celebrated for fogs.
The general cause of fogs is as follows: The air over land being heated
to a higher temperature than that over the sea, rolls offj and its place is sup­
plied by colder a ir; the meeting of the air of different temperatures, causes a
great amount of moisture to be produced, and usually occurring at night, it
remains suspended in the form of fog, until dispelled by the rays of the sun.
Clouds.— The height of clouds above the surface of the earth, varies from
one half to four miles. The different kinds of clouds have been classified, by
meteorologists, and designated by the following nomenclature, viz.: cumulus,
cirrus, stratus, nimbus, and cirro-cumulus, cirro-stratus, and cumulo-stratus.
Clouds are formed by the evaporation of moisture from the earth’s surface,
ascending until counter-balanced by the inferior density of the atmosphere in
the upper regions. Thus counter-balanced, it remains suspended in the
form of a watery vapor, to which we give the name of clouds.
Some of the surest prognostications of the weather, are, it is well known,
derived from the clouds, and the different appearances they assume were
well illustrated by Professor Olmsted by means of appropriate diagrams.
LECTURE

III.

O f Rain.
In relation to the phenomena of rain, Professor Olmsted observed, that
great differences existed in the quantity falling in different countries; in
some places it rains almost continually, while in others little or no rain
falls during the whole year. In Guiana, in South America, and on the coast
of Guinea, rains are continual and copious; but in Egypt, Arabia, and on the




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Mercantile Library Association Leclures.

coasts of Peru and Chili, it seldom or never occurs. In other places, again,
the rains are periodical; as in the West India islands, in Abyssinia, in Bra­
zil, and on the coasts of Coromandel and Malabar, in the East Indies.
There are also occasional floods of rain which continue only for a short
time, but during which immense quantities of water fall. One of these
floods occurred at Catskill, in this state, about twenty years since, when the
quantity of rain which fell was estimated at 12 inches. Similar floods have
occurred at Cayenne, in South America.
The annual amount of rain is different in different latitudes. At the
equator, the quantity which annually falls is about 80 inches; in latitude 45,
30 inches; and in latitude 60, 16 inches.
W e come now to the principle on which the theory of rain depends. It
is a well-ascertained fact, said the lecturer, that when two portions of air of
different temperature are mixed, moisture or a watery vapor is the result;
and upon this principle does the theory of rain depend. When the atmo­
sphere becomes heated by the rays of the sun, it loses a portion of its gravity.
It consequently rises into higher regions, where encountering oftentimes a
current of cold air, a large amount of watery vapor is produced, and is pre­
cipitated to the earth in the form of rain.
It would be natural to suppose, that the quantity of rain produced would
be proportionate to the causes; or, in other words, that the greater the
degree of heat which the warmer air attained, the greater would be the fall
of rain. And, accordingly, we find this to be the case ; since in very warm
days in summer, the earth is refreshed with frequent and copious showers,
far more abundant indeed, than the rains which fall in colder seasons of the
year. In the warm climates of tropical regions, also, a far greater quantity
of rain falls, than in cold or temperate climates.
From the explanation above given, of the cause of rain, it would be pro­
per to infer, that constant or steady winds would produce dry weather; vari­
able winds, rain. Let us examine whether this doctrine is supported by
facts. W e find, from the well-authenticated accounts of travellers and geogra­
phers, that in those regions where it never rains, as in Egypt, for instance,
the wind blows almost always from the north. In other portions of the
earth, as Guiana, and some parts of Brazil, where it rains daily, the winds
are very variable. Those places in which rains are of daily occurrence,
are generally near the sea. The air over the land becoming heated, ascends,
and meeting with a current of colder air from the sea, is the cause of the fre­
quency of the phenomenon.
In some portions of the world, also, the rains are periodical, as in many
parts of the East Indies; or, in other words, the year is divided into two sea­
sons, a rainy and a dry. If our theory be correct, we should find that in
those countries the winds are constant in the dry season, and variable in the
wet. And this we know to be the case from the narratives of travellers and
residents in those regions.
From what has been observed, it would appear probable that extraordi­
nary falls of rain are characterized by the meeting of violent opposite cur­
rents of wind, and this we find was actually the case with the great storm of
Catskill, in 1818, as recorded in Silliman’s Journal.
It may be asked, why our north-easterly storms continue so long with the
wind in one direction. The reason is, that there is a constant counter-cur­
rent from the south-west, blowing at the same time, in the region of air
immediately above that where the north-easterly wind prevails, and the




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535

meeting’ of these two currents, one warm and the other cold, according to
the theory before adverted to, must produce rain,
Professor Olmsted next considered the project for producing artificial rain,
as advanced by Mr. Espy, of Philadelphia, and in that connexion observed
that the principle itself was correct, and that if it were possible to create an
artificial fire of several acres in extent, rain might probably be produced in
a small district of country. W e know, indeed, that in London and its
vicinity, and in the large manufacturing towns of Great Britain, it rains
almost every day; a circumstance to be attributed to the immense number of
fires which are constantly burning in those places. But, in common with
most other persons, he of course doubted the practicability of producing rain
by artificial means.

MERCANTILE

BIOGRAPHY.

A rt . X I.— N O T IC E OF JO H N LA NGDON.
T he circumstances attending the early settlement of Massachusetts and
New Hampshire, though generally supposed to be similar, were in some
respects widely different. The planters of the old bay state left their native
country, for the sake of enjoying here a degree of freedom in religion, of
which they were deprived in the land of their fathers. The settlers of
Piscataqua, were actuated by a very different purpose. The pursuit of gain
was uppermost in their thoughts, and they embarked at once in the fisheries
and trade, which they followed with success, until many of the first settlers
became men of opulence in the new country. The great importance of the
fisheries, seems not to have escaped the attention of Captain Smith, the dis­
coverer of New Hampshire; for in his account of New England, he thus
addresses his countrymen: “ Therefore, honorable and worthy countrymen,
let not the meanness of the word fish distaste you, for it will afford you as
good gold as the mines of Potosi and Guiana, with less hazard and change,
and more certainty and facility.”
A reverend divine, in 1690, was preaching in Portsmouth, on the depra­
vity of the times, and said: “ You have forsaken the pious habits of your
forefathers, who left the ease and comfort which they possessed in their native
land, and came to this howling wilderness to enjoy without molestation, the
exercise of their pure principles of religion.” One of the congregation im­
mediately rose, and interrupted him, thus : “ Sir, you entirely mistake the
matter; our ancestors did not come here on account of their religion, hut to
fish and trade." A better illustration of the pursuits of the early settlers of
New Hampshire, perhaps, it would be difficult to give. The people of
Portsmouth, wealthy and enterprising as they are, have followed the advice
of Captain Smith, and have never suffered “ the word fish to distaste them,”
but have made it indeed “ a mine of gold” to that ancient and flourishing
town.
Among the citizens of New Hampshire, educated as merchants, who have
risen to public distinction, no one, perhaps, occupied a wider space than
J ohn L angdon , of Portsmouth. He was born in 1740, and received his
early education in the celebrated grammar school of Major Samuel Hale.




536

John Langdon.

The father of young Langdon, who was a thrifty farmer, intended his son
should engage in the same occupation; but the latter, looking upon com­
merce as the grand highway to wealth, set his heart upon becoming a mer­
chant, and accordingly made the necessary preparations to enter a countinghouse.
One of the most extensive and successful mercantile houses at that time in
Portsmouth, was that of Daniel Rindge, a counsellor under the provincial
government, and to him young Langdon made application and was admitted
to his counting-house, and soon became thoroughly versed in commercial
transactions. After completing his apprenticeship with Rindge, he made
several successful and very profitable trading voyages, with the view of ulti­
mately establishing a commercial house of his own, in his native town.
But the dark clouds that preceded the Revolution, began to skirt the horizon,
and his mind was suddenly turned in a new direction. Naturally of a bold
and fearless disposition, he entered at once into the feeling of the colonists;
and, possessing in a remarkable degree the power to win over multitudes,
he became the acknowledged leader of the t! sons of liberty” in that little
province, as much so as Samuel Adams and John Hancock, in Massachu­
setts.
Langdon was a leader exactly suited to the crisis. He took a conspicu­
ous and active part in the struggle, and soon became obnoxious to the
government and many of the loyal citizens, who feared the total annihilation
of their trade, and looked upon disloyalty as a crime of the deepest dye. In
the fall of 1774, after it had become apparent that the crisis must come,
Langdon gathered around him a band of choice spirits, and together they
proceeded in silence to the king’s fort at New Castle, seized upon all the
powder and military stores, and removed their booty to a place of conceal­
ment, whence it could be called into use in case of emergency. This bold
act produced at once an intense excitement. Gov. Wentworth stormed, and
issued proclamations, but not a voice uttered, or a thought whispered the
secret. This was in December, four months before the battle of Lexington.
In the spring of the year 1775, John Langdon was chosen a delegate to
Congress, and attended the session which commenced in May, at Philadelphia.
In January, 1776, he was re-appointed a delegate, but was not present on the
adoption of the Declaration of Independence. He commanded a company
of cadets soon after the commencement of the war, and at the time of the
surrender of the British army under Burgoyne, he was a volunteer at Ben­
nington. He was also at Rhode Island with a detachment of his company,
at the time the British troops had possession of the island, and when General
Sullivan brought off the American troops. No man had a higher popu­
larity with the people at this time, that John Langdon. He was elected
repeatedly to the legislature, and was for several years speaker of the
assembly.
When the news of the fall of Ticonderoga reached New Hampshire, the
provincial legislature was in session at Exeter. It was at a period when the
resources of the patriots were almost exhausted, the public credit was gone,
and the members of the assembly were disheartened. The men of New
Hampshire had already exerted themselves to the utmost for the good of the
cause. John Langdon was speaker of the assembly at the time. He rose in
his place, on the morning after the intelligence was received, and addressed
the house to the following effect: “ My friends and fellow-citizens—I have
three thousand dollars in hard money; I will pledge my plate for three




Mercantile Literature,

537

thousand more. I have seventy hogsheads of Tobago rum, which shall be
sold for the most it will bring. These are at the service of the state. If we
succeed in defending our firesides and homes, I may be remunerated; if we
do not, the property will be of no value to me.”
This noble proposal infused new life into the assembly:, and in the course
of a few days, by means of the funds advanced by John Langdon, a brigade
was assembled, and on its march to th'e frontiers, and to victory, ynder the
gallant Stark. During the whole of the revolutionary struggle, Langdon
was ever active and constant in his labors for the good cause. A man of the
people, in the emphatic sense of the term, he was always popular with the
great mass, whose interests he made it a point to sustain on all occasions.
Possessing a handsome address, and being open, obliging, and generous in
his general conduct, he was calculated to gain the public esteem, and was
among the few who were fortunate enough to retain it through life. He
was honored with the highest offices the people could bestow. He was
twice president of the state, under its first constitution ; was a member of the
convention which formed the federal constitution; was twelve years senator
in congress, and subsequently, for six years governor of the state. In 1811,
he retired from public life, although urgently pressed to accept the nomina­
tion of the vice-presidency, an office to which he might have been elected, had
he not preferred the quiet and repose of private life. In the enjoyment of
domestic relations, in his family, and a wide circle of friends, he chose to pass
the evening of his days, remote from the cares and bustle of public life. He
was religious, without being obnoxious to the charge of bigotry—and was
liberal of his ample means, for charitable and benevolent purposes. He died
at Portsmouth, in September, 1819, universally lamented by a people, in
whose service he had spent the greater portion of his active life.

MERCANTILE

LITERATURE.

COMM ERCE AND L IT E R A T U R E .

Anniversary Poem delivered before Ike Mercantile Library Association of Boston. By
T . F ields.
A n opinion very generally prevails among the mercantile classes of the present day,
that commerce and literature are at w ar with each ptlier; that he who is engaged in the
pursuit of the one must entirely abandon the pursuit of the other. W e say that this
opinion is general; the time has been, nor is it far distant, when it was almost univer­
sal ; but we think more liberal views and leelings upon this subject are fast growing
upon the public mind, and, to the end, that we may encourage them, these few prefatory
remarks are made. T o cite instances in proof that a love of letters and a love of trade
m ay happily exist in unison, it is unnecessary to go back to the glorious days of Ve­
nice and Florence, when cpmmerce, literature, and the arts, went hand in hand together;
we could mention the names of hundreds of the present era, who have been alike suc­
cessful in the field of letters and the field of commerce.
It is a trite remark, and one which meets us at every turn, that the present is a prac­
tical matter-of-fact age, mainly characterized by'selfish indulgences and selfish pursuits.
In this there is doubtless much truth, but there is much that is noble in the spirit of the
age; nor can we believe that all delight in literature and the arts is gone, when we see
so m any true poets, painters, and sculptors, alive in the'world; and we will not doubt
but the strong current of public taste will yet set in its proper channel, and that the
people will see and feel, that, although public virtue is the chief excellence in a nation,
nothing but genius can perpetuate it, and give to the future the lessons and glory of the
present.
J a m es

NO. VI. — VOL. I.




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538

It is not our intention to examine the poem before us by the law s of criticism ; it is
evidently from the pen of ayouthful w riter, exhibiting considerable ability, with a w ant
of a thorough knowledge of the laws of versification, and m aturity of judgm ent; but
we had rather encourage than depress the laudable efforts in literature of that respect­
able and important class of young gentlemen — merchants’ clerks — to w hich we be­
lieve the author belongs. T he following is the opening of the poem :
.

“ W hen daylight fades, and o’er the silent deep
Heaven’s sentry-stars their wonted vigils keep,
W hen night’s cold dews o’er listless nature steal,
W h y stands yon helmsman at the lonely wheel I
“ W hen the fond wife, with all a mother’s care,
Kneels down to hear her infant’s matin prayer,
W h a t tempts their guardian from his home to stray,
A nd wander far from that dear group aw ay I
Say, w hat charmed spirit in the restless wave
Allures him forth its troubled path to brave I
“ U nm ask, bold Traffic 1 thou art weaving now
T h y golden fancies round the seaman’s b ro w ;
Thou hast at will the m agic power to guide
H is heart from home, and child, and cherished b rid e ;
Thou hast a spell he m ay not rudely break,
T h at fires his soul and bids each pulse awake,
Nerves every sinew when the whirlwinds fly
In thundering combat through the riven s k y ;
A nd as faint hope with storm-rent flag sinks down,
W here raging gulfs her feeble whisperings drown,
T hy charm still broods above the foundering wreck,
A nd smiles trium phant o’er the sea-washed deck.
“ W e are its votaries, brothers ; and we come,
Like weary children to a common home,
T o steal a moment from its busy strife,
A nd breathe awhile amid the flowers of life,
Pausing together, still perchance to find
T h e joys w hich happier hours have left behind.

e

“ A nd as some actor, at the prompter’s ring,
Follows with trembling gait the dram a’s king,
A nd, while that master-spirit lights the stage
"With all the splendor of a golden age,
Crosses the footlights w ith unnoticed stir,
T o clasp a bracelet or unloose a spur,—
So I, a lisper, at this festal time
H ave come to greet you in untutored rhyme.”
In our next extract Halleck and Sprague are alluded to ; the former, we believe, is
no longer
“ Busy in the cotton trade
A nd sugar line,”
but is cashier for that distinguished millionaire, John Jacob Astor.
“ Oh, not unblest the merchant’s daily toil,
N or wasted all his thoughts and midnight oil.
L o ! where the bard of Alnwick Castle pores
O ’er traffic’s page, anon aloft he soars,
Nobly obedient to the muse’s call,
A nd leads the van, most honored of them all.
A nd he who sweetly tunes the lyric strings,
W hose heavenward strains are borne on gentler w ings;
In yonder street his earnest eye behold,
T urned from Parnassus to his piles of gold;




Commerce and Literature.

539

C an his known prudence in these times assuage
T he fears and scruples of a 'payer age ?
Does he in banking as in verse excel ?
L et financiers and calm directors tell!”
T he following tribute is paid to that distinguished navigator and mathematician,
Nathaniel Bow ditch:
“ A nd shall we leave unsung his honored name
W hose memory gilds his country’s rising fame?
Shall not one strain in grateful homage rise
T o wreathe his tomb who read yon vaulted skies ?
Shall we forget this joyous eve to gaze
On that far pathw ay, lit with wisdom’s rays ?
B right guide to commerce! though, alas, no more
T h y buoyant footsteps m ark earth’s narrow shore,
T hough not for thee yon glistening pleiads burn,
Though not for thee heaven’s wheeling orbs return,
T hough from this spot no longer looks thine eye
A s once to scan the countless worlds on high,—
In every age, through every sea and clime,
T he name of B owditch triumphs over time.”
W ith the following extract, descriptive of a speculator’s visit to his “ M aine lands,”
we must conclude:
“ M ark now the fall! Before the season’s late,
O ur wealthy lord must visit his estate;
A nd as his jaunt will raise some small alarms
Among the tenants o fth ’ adjoining farms,
H e takes the statutes of the state of Maine,
H is new brown coat, his golden-headed cane;
Kisses his children, bids his wife adieu,
A nd ere he knows it, half his journey’s through.
W ith map unrolled, he leaves the village inn,
Looking like Fusbos, when he conquers F in n ;
Meets on his way some tiller of the ground,
Perhaps his own — who knows — he’s hale and sound;
T h e great man stops, the yeoman rolls his quid,
N or doffs his beaver as the landlord did ;
‘ Are you employed, sir, on the John Smith farm V
Our shopman asks, his anger waxing w arm ;
1 T hey say John Smith owns yonder swamp down there,’
Replies the ploughman, straightening out his hair,
‘ But as to farming, it is very clear,
H e’ll find more black snakes than potatoes here.’
“ Oh, short-lived bliss 1 the shopman looks around,
A nd finds his farm a tract of barren ground;
H is forest trees to dwarfish shrubs decline,
H is turrets vanish, nor can he divine
W ith what intent a railroad could be made
T o such a spot, where neither lawn nor glade,
N or aught inviting to the eye of taste,
Relieves the dullness of the steril waste.
“ T he bubble’s b u rst! the dupe returns in haste,
Makes a small entry in his dusty W aste,
Ere yet the rumbling of the mail has ceased,
1Profit and loss to cities lying east;’
A nd he who revelled on uncounted means,
W ill sell his township for a mess of greens.”




Mercantile Literature.

540

foot ’s argument in favor of the general banking law .

W e have received a pamphlet, containing an argument in favor of the constitutiona­
lity of the General Banking L aw of this state, delivered before the Supreme Court, at
the July term, 1839, by Samuel A. Foot, Esq., and recently published, which embodies
much talent, and evinces deep research and profound legal knowledge.
T he subject which is here so learnedly discussed, imperatively called for a display
of the highest order of talent, as well on account of the important pecuniary interests
involved, as from the disastrous results, which would inevitably flow from the adju­
dicated illegality of a measure, which has already become so identified with the exis­
tence of our credit at home and abroad.
T he preliminary remarks of the learned author, are characterized by soundness and
elegance ; illustrating in a forcible manner, the great inconvenience and injury which
must arise, in even doubting the constitutionality of the principles upon which our
banks, under this law, are based ; and in adverting to the possibility of their being de­
clared a violation of the constitution. T he immense amount of losses which would
then follow, the litigation which would ensue, and the financial derangement and com­
mercial prostration necessarily resulting, were vividly presented, and eloquently urged.
Connected with the subject of this argument, the natural and constitutional right of
every citizen to exercise the privilege, of free banking is ably considered and clearly es­
tablished ; and a history of the restraints imposed by law upon private banking is
given, and their tendency and operation examined.
T he ground upon which the constitutionality of this law was questioned, being;.that
the associations formed under it were corporations, and that it required two thirds of
the legislature to concur in their creation ; it became necessary in the course of this ar­
gument, to show in what the legal and essential requisites ofa corporation consisted. In
elucidating this portion of his argument the author evinces a clearness of arangement,
an originality of thought, and a familiarity with legal principles, which m ark the finish­
ed and well-read lawyer.
In examining this branch of his subject, judicial decisions which are applicable
swell the authority^which the strength of his reasoning affords. T he rights, franchises,
and privileges of corporations, as they existed at common law, are clearly pointed out,
and the various alterations, and modifications, introduced by statutory provisions, are
ably considered.
A history of the passage of this law through our legislature, is presented by the au­
thor, in support of his argument. The objections which were then made, the modifica­
tions it underwent, and the care which w as bestowed in framing its provisions, are
urged, to show that every constitutional objection was intended to be met and obviated
previous to its final passage.
T he importance o f the principles contained in this argument, with reference to the
subject to which they are applied, and the necessity of their being understood, and
rightly appreciated by the merchant and man of business, to whom they are of pe­
culiar interest, form a sufficient recommendation for its perusal.
T he creation and operation of banking associations, organized under the provisions
of this act, form a new and distinct feature in the financial history of this country, and
open a still wider field for commercial enterprise ; and it is of the deepest importance to
all who are desirous of embracing the opportunities, which are afforded by this law,
for the profitable investment of capital, to obtain a thorough knowledge of its legal
construction, and effect. So short a time has elapsed, since the passage of this act,
that few judicial decisions have been made, calculated to settle the rights, and deter­
mine the liabilities of associations, erected under its provisions ; and the final decision
of the case in which this argument was delivered will settle all questions as to its con­
stitutionality.
So far as the state of the pleadings would permit, the Supreme Court, at the October
term, decided the points discussed in this argument.
T he court expressed the opinions, First , that associations formed under the Ge­
neral Banking law are corporations; Second, that the assent of two thirds of all the
members elected to each branch of the legislature was necessary to the passing of the
a c t; and, Third , that if passed by a two third vote, the act is constitutional.
On the last point, Mr. Justice Bronson was not prepared to concur, but on the other
questions, the opinion of the whole court was expressed.




Commercial Statistics.

COMMERCIAL

541

STATISTICS.

IM P O R T S AND E X P O R T S OF S P E C IE .

A

T a b l e , compiled f rom public documents published by Congress, by S. Hazard. Esq.
of the United States Statistical Register, and embracing only the Specie which comes
under the notice of the Custom House, an d does not probably include that which is in
the personal possession o f Emigrants arriving in or departing from the United
States.

IM PO R TS.

Years.

1821
1822
1823
1824
1825
1826
1827
1828
1829
1833
1831
1832
1833
1834
1835
1836
1837
1838

Total
Imports.

COIN.

Gold.

EXPORTS.

Gold.

Silver.

34,954 8,013,4S9
378.257 5,252,661
562,546 5,740,139
1,019,399 6,618,077
738,570 6,216,458
706,038 5,749,839
705,879 6,285,475
765,838 5,687,633
614,665 4,454,107
563,585 6,160.676
3,472,507 13,631,043
1,669,739 10,040,968
5,318,725 5,850,669
1,895,265 7,490,309
11,444,189 5,679,390

8,064,890
3,359,846
5,097,896
8,379,835
6.150,765
6'88J,966
8,151,130
7,489,741
7,403,612
8,155,964
7,305,945
5,907,504
7,070,368
17,911,632
13,131,447
13,400,881
10,516,414
17,747,117

29,890,146 102,870,933 162,870,933

Total Exports.

COIN.

315,672
434,555
820,304
928,934
935,102
474,876
899.365
630,850
495,890
276,909
625,679
275,940
1,823,653
740,263

Silver.
10,477,969
10.781,392
6,371,187
7,014,552
8,470,534
3,623,385
6,139,155
6,565,804
3,136,941
731,955
5,831,830
3,351,417
1,722,196
1,383,987
5,122,495
3,624,186
2,756,914
2,292,342

10,478,059
10,810,180
6,372,987
7,014,552
8,797,055
4,093,678
8,014,880
8,243,476
4,924,020
2,178,773
9,014,931
5,656,340
2,611,701
2,076,758
6,477,775
4.324,336
5,976,249
3,508,046

9,682,532 89,393,781 110,578,796

In the above table, the amount of Bullion imported and exported is omitted.
aggregate for eighteen years is as follows:
Imported—G o ld ............................................ ............................... $4,611,740
Silver,.......................................................................... 8,230,501
T o ta l................

Exported—Gold

812,842,241

.................................... •»........................
S ilv e r................ . . ....................................................

$269,928

T o t a l . . . . ..................................

$1,142,279




872,351

T he

Commercial Statistics.

542

C O M M E R C E OF M A IN E ,

FROM

1820
1821
1822
1823
1824
1825
1826
1827
1828
1829
1830
1831
1832
1833
1834
1835
1836
1837
1838

TO

,<5 K g
g

EXPORTS.

1

1820

Imports.
Domestic.

Foreign.

Total.

1,082,568
993,923
1,013,873
865,046
870,871
964,664
1,001,875
1,033,035
1,003,642
729,106
643,435
799,748
907,286
989,187
815,277
1,041,951
835,074
947,276
915,076

25.463
46,925
22,769
30.455
29,324
66.463
50,700
37,099
15,875
8,726
27,087
5,825
74,157
30,644
18,890
14,416
14,912
8,676
20.456

1,108,031
1,040,848
1,036,642
895,501
900,195
1,031.127
1,052,575
1,070,134
1,019,517
737,832
670,522
805,573
981,443
1,019,831
834,167
1,059,367
850,986
955,952
935,532

980,294
943,775
891,644
768,443
1,169,940
1,245,235
1,333,390
1,246,809
742,781
572,666
941,407
1,123,326
1,380,308
1,060,121
883,389
930,086
801,404
899,142

1838.
§ £

§ *■ » ^

l ibij'xa
s
e S«
£5s'>“

402,994
363,846
347,516
356,956
354,095
446,800
384.637
402,842
449,178
367,215
342,260
346,647
359,486
336,381
244,518
239,730
172,154

24,963
43,229
35.979
37,394
27,004
57,277
22,831
29.979
32,413
23,556
12,323
15,499
21,906
19,613
8,794
1,386
678

<5

3

Registered
tonnage.

67,274.22
60,835 03
60,860 84
63,440 39
71.318 19
80,468 64
86,555 64
84,347 86
98.749 41
84.319 75
70,585 47
69,753 55
84,486 55
88,118 32
105,443 49
101,912 93
118,605 68*
90.750 04*
96,382 76*

Maine became a state in 1820. Prior to that year, its commercial statistics are
embraced in the Table of Massachusetts, published on p. 278.

Imports.
Domestic.

84,764
1818
50,456
1819
96,636
1820
1821
108,960
1822
209,748
1823
200,387
1824
457,725
1825
691,897
1826 1,518,701
1827 1,330,770
1823 1,174,737
1829 1,679,385
1830 2,291,825
1831 2,412,862
1832 2,733,554
1833 4,522,221
1834 5,664,047
1835 7,572,128
1836 11,183,788
1837 9,652,910
1838 9,688,049

Foreign.
12,093
450
....
.. ..
.. ..
.. ..
3,002
738
8,411
45,594
7,822
14,573
3,129
1,032
2,833
5,740
6,750
2,564
378
18,491
195

Total.
96,857
50,906
96,636
108,960
209,748
200,387
460,727
692,635
1,527,112
1,376,364
1,182,559
1,693,958
2,294,594
2,413,894
2,736,387
4,527,961
5,670,797
7,574,692
11,184,166
9.671,401
9,689,244

....
.. ..
36,421
125,770
91,604
113,411
179,554
201,909
171,909
233,720
144,823
224,435
107,787
265,918
395,361
525,955
651,618
609,385
524,548

TO

23,395
7,233
15,579
16,398
38.073
34,416
44,710
57,075
60,265
1 0 1 ,1 1 2

93,172
133,552
90.732
86,083
57,166
46,940
57,493
92,865
138,840
—

1838.
Drawbacks on
foreign mer­
chandise.

EX PORTS.

1818

Duties on fo ­
reign mer­
chandise im­
ported.

Years.

COM M ERCE OF ALABAMA, FROM

385
169
236
232
6,992
55
13,364
3,950
2,560
999
414
510
1,053
913
—

Registered
tonnage.

2,538
1,088
619
140
829
821
1,494
1,462
3,526
4,625
1,585
2,137
2,330
1,920
4,180
4,556
1,741
2,733
8,203

87
68
60
68
62
57
18
37
07
20
79
56
83
21
61
34
16*
69*
22*

T his state receives its supplies of foreign goods principally from the northern states,
which will account for the small amount of foreign imports by sea.
* Ending September 30.




[From Hazard’s Com.

Slat. Register.

Commercial Statistics.

543

C O M PA RAT IVE S T A T E M E N T OP E X P O R T S OP CO T T O N FR O M T H E U N IT E D
STATES.

1838-9.

1837-8.

EXPORTS FROM

Great
Britain. Fiance.

Other
Ports.

Great
Other
Britain- France. Ports.

DATE.

New Orleans, Sept. 3 0 ........ 309,768
Natchez, Sept. 3 0 ..................
2.009
Mobile, Sept. 30.................... 125,635
Savannah & Darien, Sept. 30 97,853
Charleston and Georgetown,
Sept. 3 0 .............................. 119,486
Virginia, Sept. 30..................
6,648
New York, Sept. 3 0 .............. 125,674
Other ports. Sept. 30............
16,356
T o ta l..........................

122,452

10,486

22,304
10,480

' 2,003
2,234

30,665
98
53,123
3,121

8,109
1,054
9,213
924

800,429 242,253

481,501 127,828
15,246
158,029 64',123
197,971 27,024

’ 5,908
1,192

158,212
12,205
97,005
60,412

55,685
4,136
42,929
2,755

32,570
3,097
22,016
2,151

34,028 1,180,581

321,480

89,042

22,108

C O M M E R C E W I T H B R A Z I L ---- R I O J A N E I R O .

T he commerce of the United States with Brazil is im portant; nearly one third of
the coffee, and a large portion of the sugar and hides of foreign importations, is from
Brazil. Our exports of flour, provisions, and the various articles of domestic manu­
factures, amounted last year, closing with 30th Sept., to $'2,094,957. T o show the
importance of our commerce, we subjoin the imports and exports of a few leading arti­
cles for the last five years, and under the appropriate head, “ Commercial Treaties and
Regulations,” will be found an article from a late Rio circular, which will, we think,
be found useful to some of our commercial men who have a direct intercourse with the
Brazilian provinces, and particularly with Rio Janeiro.
T he importations into the United States from Brazil for the five preceding years,
ending 30th Sept., were as follows:

Year.

Am. Vessels.

1834 ............................................ $4,547,119
1835 ..................................................5,547 949
1836 ...............................................6,553,186
1837 .................................................. 3,940,059
1838 ..................................................3,116,843

For. Vessels.

Total Imp.

$182,850
26,517
657,004
1,051,924
74,395

4,729,969
5,574,466
7,210,190
4,991,983
3,191,238

O f the above, besides the value of the hides imported each year, the following shows
the value of the coffee for each consecutive year, which w as $2,819,038; $3,602,000 ;
$4,623,385 ; $3,254,965 ; $2,323,205; and of the brown sugar in like m anner: $356,865; $395,083; $1,579,596; $199,387; $429,853.

Year.

Cofee.

1834 ................................. lbs. 26,571,368
1835 ......................................... 35,774.876
1836 ........................................... 46,840,219
1837 ........................................... 33,906,246
1838 .........................................27,411,986

Brown Sugar. Hides in vat.
Zis.6,816,156
7,969,883
27,849,654
3,287,401
7,885,067

$1,093,131
1,150,691
679,634
947,493
124,730

Exported from the United States to Brazil within the above specified time, of foreign
and domestic articles, the following am ount:
Year.

For. Export.

1834..................
1835.................. ..................
1836..................
1837..................
1838.................. ..................




797,865
562,237

Dora. Export.

Total Export.

$1,586,097
1,810,791
1,732,741
1,301.217
2,094,957

$2,059,351
2,608,656
3,094,936
1.743,209
2,657,194

Commercial Statistics.

54 4

O f the domestic exports noticed above, the following will show how far flour and
bread, cotton manufactures, and spirits from grain, contributed to make up the list, to
say nothing of provisions, oil, sperm candles, household furniture, and other manufac­
tures of the United States.

Year.

Flour and Bread.

Cotton Man.

Spirits.

$234,721
266,916
200,994
303,102
536,513

$19,986
16,640
6,058
8,302
12,641

1834 ........................................... $894,440
1835 ............................................... 991,269
1836 ........................................... 884,126
1837 ........................................... 618,680
1838 ........................................... 1,086,033

The exports from Rio Janeiro for the month of June last, compared with those in the
same period of the two preceding years, were as follow:

Coffee,
bags and barrels,
In 1839...................................................... 52,188
1838 ...................................................60,603
1837 ........
42,234

Sugar,

Hides,

in cases.
1,544
1,585
2,438

No. of.
17,756
6,2-11
22,577

T he export of sugar during the first six months of
1839 w a s ............................................................................................... 9,()07cases.
1838 “
1837 “
T he exports from Santos 1838-1839, were 400,000 arrobas, against 294,000 in
1837-1838.
The stock of hides on hand at Rio Janeiro, at the close of June last, was about
20,000, nearly all heavy weights.
Export in the
Do.
Do.

first six months of 1839 ........................................... 92,322 hides,
do.
1838........................................................ 105,366 “
do.
1837.....................................
67,446
“
E X P O R T S O F S IL K F R O M GEORGIA, F R O M

1755

TO,

1773.

In Bernard Roman’s H istory of Florida, we find a statement of the exports from
Georgia for eighteen years. One of the articles is raw silk. A considerable interest is
felt in the production of this article, and as some doubts have been expressed as to the ul­
timate success of the various projects now in operation, it m ay be useful to show, occa­
sionally, what has been heretofore accomplished. W ith this view, the following state­
ment is presented :
1755-6..........................................................................................438lbs.
1757 ......................................................................................... 263
1758 ..........................................................................................358
1759 ..........................................................................................358
1760
.734
1761
.558
1762,
.332
1763
.380
1764.
.953
.898
1765,
1766
.711
1084
1767
1768,
.617
.541
1769,
.332
1770,
.290
1771,
1772,
.438
1773,
.485
9829 lbs.
B e in g an average, in eighteen ye ars, o f 546 lbs. per annum .




1

Commercial Regulations and Treaties.

545

COMPARATIVE PRICE OP WHEAT.

A T able, showing the price of Wheat, as settled at the Patroon's office, on the first o f
January , during the several years there mentioned, as published in the Troy Daily
Whig, edited by James M. Stevenson, Esq.
January 1st, 182)
1826
1827
1828
1829
1830
1831
1832
1833
1834
1833
1836
1837
1838
1839

1 bushel of wheat, 8s
1
7s
1
..
8s
1
..
8s
1
14s
1
8s
1
.. 10s
1
.. 10s
1
.. 10s
1
8s
1
..
8s
1
l*2s
1
.. 18s
l
.. 13s
1
14s

COMMERCIAL

4 fowls, 4s
4s
4 ..
4 ..
4s
4 ..
4s
4 ..
4s
4 ..
4s
4 ..
4s
4s
4 ..
4s
4 ..
4s
4 ..
4s
4 ..
4 ..
4s
4 ..
6s
6s
4 ..
6s
4 ..

REGULATIONS

1 day’s services,
..
..
..
..
..
..
..
..
..
..
..
..

i
i
i
i
i
i
i
i
i
i
i
i
i
i

..
..

16s
16s
liS

16s
16s
IBs
ISs

16s
16s
16s
16s
16s
IB s

16s
los

AND T RE A T I E S ,

IMPORT AND EXPORT DUTIES, PORT CHARGES, ETC., IN BRAZIL.

A direct trade with foreign countries is only permitted in such ports of the empire
of Brazil, where there are custom-houses established ; they are the following : Para,
Maranham, Parnahibn, Fortaleza ( Ceara), A racaty ( Geara), Rio Grande North, Parahiba, Pernambuco, Maceyo (Alagoas), Larangeiras (Scrgipe),Bahia, Espirito Santo,
Rio de Janeiro, Santos, Paranaqua, St. Catharine, Rio Grande, Sao Borja (R.G. south,)
Porto Alegre, (R. G. S.)
I m p o r t D u t i e s . —All foreign merchandise is subject to an import duty of 15 per
cent., except tea, which pays 30 per cent., and gunpowder, as also wines and spirituous
liquors, (the production of countries which have no commercial treaty with Brazil)
paying 50 per cent., on valuations fixed by a tariff, (which is the same throughout the
empire) and articles not specified in such tariff, pay duty on a value declared by the
importer, the custom-house officers having the right to take the goods at such value,
and 10 per cent., thereon. The countries having treaties with Brazil, and the dates
when they expire, according to the intimation sent from the foreign office to the custom­
house, are as follows: Prussia, 25ih November, 1839; Hansetowns, d o ; Denmark,
7th March, 1840 : United States of North America, 17th November, 1841 ; Holland,
and Belgium, 18th April, 1841 ; Great Britain. 15th November, 184*2. Since the 1st
of July, 1839, wines, spirituous liquors, and flour, are subject to a special weekly tariff*
A committee has been appointed by the Government to revise the general tariff; con­
siderable progress has been already made in such revisions ; when completed and
determined to be put in force, we shall publish the particulars in our pages.
Besides the aforementioned duties, goods (excepting linen cambrics, lace of thread
or silk, manufactures of gold or silver, and precious stones, which pay only l j per
cent expediente,) are subject to a charge of 5 per cent, on the like valuations for clearance
charges and storage rent, ( expediente and armazenagem) dry goods are, however, per­
mitted to remain in the custom-house warehouses without any further additional
charge, for a period not exceeding four months ; after the expiration of which they
incur a charge of £ per cent, per month ; articles that come under the denomination of
Estive-goods, are allowed to remain for the space of one month, and then pay £ per
cent, per month storage rent.
Machinery, not previously in use at the port where imported is dutyfree, but subject
to the charge of 5 percent, for expediente and armazenagem.
N. B. W ines and spirituous liquors pay further 1,500 rs. per pipe of 188medidas to
the misericordia hospital, and 200 rs. per pipe of any size, town dues.
E x p o r t a t io n .—Prior to the first of July, coffee from the serra-abaixo flow country)
paid 11 per cent., and from the serra-acima (upper country) 10 per cent, if of the pro­
vince of Rio Janeiro ; but if from any other, on presentation of the requisite certificate
VOL. I . ----NO. VI.




69

546

Commercial Regulations and Treaties.

of origin, only 7 per cent. However, by the Provincial Budget of the 10th of June,
the distinction between from the serra-abaixo and serra-acima is done away with,
both paying alike, namely, 1J per cent.
Tobacco pays 12 per cent, if from the province of St. P auls; but if from that of
Minas, only 7 per cent. Maize, rice, and pulse, if of the province of Rio Janeiro, pay
12 per c en t, if any other, 7 per cent. Indigo, tapioca, and any articles not otherwise
specified, pay 7 per cent. Sugar pays since 1st July, 2 per cent, additional provincial
duty, which is likely to fall on the exporter.
The above duties are levied upon valuations fixed by a weekly tariff.
Precious metals in coin or bars, and gold dust, whether foreign or national, are
subject to an export duty of 2 per cent, ad valorem.
C ustom- house tares and allowances.—On goods imported in packages and cleared
by weight, the real tares are allowed ; on liquors there is allowed for leakage and break­
age, in glass bottles 5 per cent., stone do. 3 per cent., and in casks or demijohns 2 per
cent., and on glass and earthen-ware 5 per cent.
R e-E xportation and T ranshipment.—Goods re-exported or transhipped pay 2 per
cent., and when for the coast of Africa, 13 per cent, additional.
F ranquia.— Vessels may enter in Franquia, 1st, when bringing no cargo for the
p o rt; 2d, when bringing only part cargo for the port, and the remainder for another
destination ; 3d, when putting in to learn the state of the market, or for refreshments
or repairs.
M anifests.—Every commander of a vessel is required to bring a very exact manifest
of her cargo in duplicate, signed by the Brazilian Consul, resident at the loading port.
A t ports where no such Consul resides, the said manifest must be signed by two Brazil­
ian merchants, or it there be none such, then by two native merchants, the signatures
in either case being certified by the competent local authority. Non-compliance with
this regulation or inaccuracies in the manifests, as also irregularities in discharging or
loading, subject vessels to heavy fines.
P ort C harges.—All foreign vessels, as also national vessels trading with foreign
parts, pay 30 reis per diem anchorage, for each ton of Brazilian admeasurement, (which
proves generally about the true burthen,) calculated for 50 days from the date of each
entry into the port, but all vessels are exempt from this due that introduce ICO white
colonists into any port of Brazil. The remaining port charges do not exceed from 30
to 40 milreas for each vessel, according to her size.
P ilotage.—There are no pilots for the port of Rio de Janeiro, nor are any necessary
for entering that noble harbor, as there are no hidden dangers of any kind.
S ale of V essels.—A duty of 5 per cent, ad valorem is payable upon the sale of all
vessels, whether foreign or national, and of 15 percent, upon foreign vessels being natu­
ralized.
freights .— quantity of goods to compose a ton .

Extract from the By-laics of the New York Chamber of Commerce.
Resolved, T hat when vessels are freighted by the ton, and no special agreement is
made between the owner of the vessel and freighter of the goods, respecting the propor­
tion of tonnage which each particular article shall be coimuted at, the following regu­
lations shall be the standard of computation:
T h at the article, the bulk of which shall compose a ton. to equal a ton of heavy ma­
terials shall be in weight as follows: 15ti8 lbs. of coffee in casks, 1830 lbs. in b a g s; 1120
lbs. of cocoa in casks, 1307 lbs. in bags.
952 lbs. Pimento in casks, 1110 lbs. in bags.
Eight barrels of flour, of 190 lbs. each.
Six barrels of beef, pork, tallow, pickled fish, pitch, tar, and turpentine.
T w enty hundred weight of pig and bar iron, potashes, sugar, logwood, fustic, Nica­
ragua wood, and all heavy dye woods, rice, honey, copper ore, and all other heavy
goods.
Sixteen hundred weight of coffee, cocoa, and dried codfish, in bulk, and twelve hun­
dred weight of dried codfish in casks of any size.
Six hundred weight of ship bread in casks, seven hundred in bags, and eight hun­
dred in bulk.
T w o hundred gallons (wine measure) reckoning the full contents of the casks, of oil,
wine, brandy, or any kind of liquors.
Twenty-two bushels of grain, peas, or beans, in casks, and thirty-six bushels, in
bulk.
T hirty-six bushels of European salt.




Commercial Regulations arid Treaties.

547

Thirty-one bushels of salt from the W est Indies.
T wenty-nine bushels of sea-coal.
Forty feet (cubic measure) of mahogany, square timber, oak plank, pine, and other
boards, beavers, furs, peltry, beeswax, cotton, wool, and bale goods of all kinds.
One hogshead of tobacco, and ten hundred weight of dry hides.
Eight hundred weight of China raw silk, ten hundred weight net bohea, and eight
hundred green tea.
BILLS OF EXCHANGE.

By a revised law of the state of New York, the following damages on bills drawn
or negotiated in this state, and protested for nonpayment, are allowed, viz.
Bills drawn on the states of Maine, New Hampshire, Vermont, Massachusetts,
Rhode Island, Connecticut, New Jersey, Pennsylvania, Ohio, Delaware, Maryland,
Virginia, or District of Columbia, three per cent.
North Carolina, South Carolina, Georgia, Kentucky, or Tennessee, Jive per cent.
A ny other state .or territory of the United States, or any other place on or adjacent to
this continent, and north of the equator, or any British or other foreign possessions in
the W est Indies, or elsewhere on the western Atlantic ocean, or any port or place in
Europe, ten per cent.
§ 19. Such damages shall be in lieu of interest, charges of protest, and all other
charges incurred previous to, and at the time of giving notice of nonpayment, but the
holder of such bill shall be entitled to demand and recover lawful interest upon the ag­
gregate amount of the principal sum specified in such bill, and of the damages thereon,
from the time at which notice of protest for nonpayment shall have been given, and pay­
ment of such principal sum shall have been demanded.
§ *20. If the contents of such bill be expressed in the money of account of the United
States, the amount due thereon and of the damages herein allowed for the nonpayment
thereof, shall be ascertained and determined without any reference to the rate of ex­
change existing between this state and the place on which such bill shall have been
drawn, at the time of the demand of payment or of notice of nonpayment.
§ 21. If the contents of such bill be expressed in the money of account or currency of
any foreign country, then the amount due, exclusive of the damages payable thereof,
shall be ascertained and determined by the rate of exchange or the value of such
foreign currency, at the time of the demand of payment.
TO MARINERS.

Lark Rock— Bay of Honduras.—A rock with only five feet water on it, hitherto un­
known, was recently discovered by H . M. Surveying vessel Lark, Lieut. Thos. Smith,
in Placentia Narrows, the channel used by all merchant vessels proceeding from Belize
to the Gulf of Honduras, or the Southern rivers of British Yucatan.
Its position is one mile from the reef which forms the east side of the channel, one
mile and one third N. £ E. (by compass) from the sand bar when in one with the East­
ern part of Scipio bay, and 4^ miles E. i S. from False-point Placentia.
Vessels with a fair wind usually pass far to the westward of it, but when beating
against a head wind care should be taken to avoid it, as it is not larger than a ship,
and has 10 and 11 fathoms close around it.

EAST INDIA COMPANY.

A return has been printed by order of the House of Commons of the territorial re­
venues and disbursements of the East India Company for the years 1835, 183G, and
1837, with an estimate of both for 1838. The results, which are all the public care
about, are of a very favorable kind. In the year 1835, which was that succeeding the
abrogation of their charter as a trading company, and in which the greater part of
their commercial assets was realized, there existed a surplus of income over expendi­
ture of 8,030,0002., after deducting a sum of 2.000,0002., set apart for the formation of a
guaranty fund for the proprietors of East India Stock. In 1835 the surplus was
2,000,0002.; in 1837,2,470,0002.; and for 1838 the estimate of surplus is 1,300,0002. The
public debt of the East India Company, at the several presidencies, on the 1st of April,
1837, is stated at 30,400,0002.; and the interest on it at 1,440,000£. T he rate of inter­
est paid for the various loans varies from 4 to 10 per cent., but the average is about 4f
per cent.




Bank Statistics.

548

BANK S T A T IST IC S.
RA TIO OF S PE C IE IN T H E BANKS OF MASSACHUSETTS.

A Table showing the Number of Banks, Capital, Ratio of Specie to Circulation and Deposites, in each Yearyfrom June, 1803, to October, 1838, compiled from the Bank Re­
turns in the Secretary of the State’s Office, by J. S. Sleeper, Esq., editor of the Mer­
cantile Journal, Boston.
--------------------------------------7-------------DATES/

Months.

Years.

June,

1803
1804
1805
1806
1807
1808
1809
1810
1811
1812
1813
1814
1815
1816
1817
1818
1819
1820
1821
1822
1813
1824
1825
1826
1827
1828
1829
1830
1831
1832
1833
1834
1835
1836
1837
1838

January,
June,

M ay,
August,
June,
October,
August,
October,
M ay,
September,
October,

Number of Ratio of Specie to Ratio of Specie to
Banks.
the Circulation. the circulation and
deposites.
7
13
16
15
16
16
16
15
15
16
16
21
25
25
26
27
23
28
28
33
34
37
41
55
60
61
66
63
70
83
102
103
105
117
129
120

$1 to 1,44
1 to 1,73
1 to 1,83
1 to 1,68
1 to 2,07
. 1 to 1,02
1 to 1,62
1 to 1,55
1 to 1,55
1 to 0,58
1 to 0,37
1 to 1,42
1 to 0,79
1 to 1,69
1 to 1,70
1 to 2.18
1 to 2.05
1 to 2.04
1 to 0,98
1 to 3,31
1 to 3,02
1 to 1,96
1 to 5,76
1 to 4,83
1 to 4,54
1 to 4,23
1 to 4.81
1 to 4,07
1 to 8,41
1 to 7,89
1 to 8.55
1 to 6,59
1 to 8,29
1 to 7.48
1 to 6,76
1 to 3,92

$1 to
1 to
1 to
1 to
1 to
1 to
1 to
1 to
1 to
1 to
1 to
1 to
1 to
1 to
1 to
1 to
1 to
1 to
1 to
1 to
1 to
1 to
1 to
• 1 to
1 to
1 to
1 to
1 to
1 to
1 to
1 to
1 to
1 to
1 to
1 to
1 to

2,85
2,88
3,03
3,80
4,47
3.53
4.44
3 38
3,79
1,87
1,57
1,74
1,95
3,38
3,81
4,94
4,20
4,52
3,10
6,72
6,04
4.68
8,29
6,82
6.58
8;34
7,38
6,91
13,19
11,15
12,57
10,82
13,06
13,52
12.34
6,90

On the 10th of February, 1838, according to the returns of one hundred and twenty-"
four banks, the specie to the circulation was ns 1 to 5.34, and to the circulation and deposites as 1 to 8,54 — a reduction from; October, 1837, favorable to their immediate
liabilities.




Bank Statistics.

549

In the following; table is contained the average number of banks, the average ratio of
specie to the circulation, and its average ratio To the circulation and deposites:

ratio of
Aver, ratio of Aver,
specie to cir­
No. of Banks. specie to cir­ culation and.
culation.
deposites.

In 36 years, from 1803 to 1838......................

14^
257-10
57
1122-3
1144-5
1457-9

$1 to 1,30
1 to 0,99
1 to 4,84
1 to 6,46
1 to 6,21
1 to 2,60

SI to 3,06
I to 2,64
1 to 7,53
1 to 10,94
1 to 10,l i
1 to 4 89

R A T IO OF S P E C IE I N T H E B A NK S OF BOSTON.

DATES.
Months.
June,

J anuary,
June,

..

..

M ay,
,.

August,
June,
October,
August,
October,
M ay,
September,
October,

Years.

No. of
Banks

Capital.

2
3
3
3
3
3
3
3
3
4
4
6
6
6
6
7
7
7
7
10
10
12
14
15
15
16
17
17
20
22
25
26
28
33
34
23

SI,600,000
3,400,000
3,400,000
3,400,000
3,400,000
3,800,000
3,800,000
4,600,000
4,600,000
5,800,000
7,000,000
8,725,000
9, L00.000
9,100,000
6.800,000
7,049,425
7,350,000
7,350,000
6,550,000
7,421,125
8,050,000
8,925,000
10,300,000
11,050,000
11,550,000
12.345,005
12.900,000
12,350.000
13,600,000
15.150.000
16,401,250
17,150,000
18,150,000
20,118,850
21,350.000
18,450,000

1803
1804
1805
1806
1807
1808
1809
1810
1811
1812
1813
1814
1815
1816
1817
1818
1819
1820
1821
1822
1823
1824
1825
1825
1827
1823
1829
1830
1831
1832
1833
1834
1835
1836
1837
1833




Ratio of Specie to Ratio of Specie to
Circulation and
Circulation.
Deposites.
Si
i
i
i
i
i
i
i
i
i
i
i
i
i
i
i
i
i
i
i
i
i
i
i
i
i
i
i
i
i
i
i
i
i
i
i

to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to

1,27
123
0.76
0,77
1.07
0,41
1,61
1,29
1,27
0,37
0,30
0,31
0,69
1,27
1,18
1,91
1,44
.1,48
0,58
2,75
2,68
1,64
7,02
5.35
4,11
6,79
3,13
2,38
5,99
5,13
4,30
3,34
3,68
3,68
3,88
2,00

S I to
i to
1 to
i to
i to
i to
i to
i to
i to
i to
i to
i to
i to
i to
i to
i to
i to
i to
i to
i to
i to
i to
i to
i to
i to
i to
i to
i to
i to
i to
i to
i to
i to
i to
i to
i to

3,37
3,36
2.8
4,82
6,80
3,60
5,50
3,73
4,71
1,81
1,49
1,66
2,07
3,45
4,08
5,78
4,22
4,77
2,58
8,79
7,55
5,54
10,53
7,59
6,18
8.59
5.58
4,79
10,80
8,07
8,09
7,52
9,54
9,86
9,68
4,93

Bank Statistics.

550
A

T a b l e , containing the average number of Banks , the average Capital, the average
ratio of Specie to the Circulation, and the average ratio to the Circulation and the
Deposites.

Aver, ratio oj Aver, ratio of
No. of Banks. Aver, capital. specie to cir­ specie to cir­
culation and
culation.
deposites.
10 years
10 years
10 years
6 years
36 years

from
from
from
from
from

1803 to
1813 to
1823 to
1833 to
1803 to

1812...
1822...
1832...
1838...
1838...

3
63-5
154-5
29
118-9

$3,780,000
7,614,555
11,621,805
18,603,350
9,502,325

$1
1
1
1
1

to
to
to
to
to

0,81
0,68
4,14
3,33
1,75

$1
1
1
1
1

to
to
to
to
to

3,24
2,52
7,16
7,98
4,36

In October, 1837, the ratio of the specie to the circulation in the Boston banks, was
as S I to S3,88, and in one year it was increased over 48 per cent., so that in October,
1838, it was os S I to $2, which is only 14 per cent, less than the average ratio of S I to
$1,75, from 1803 to 1836, according to the official returns for 36 years. A t the present
time, the ratio is about $1 to $1,42, being an increase of 28 per cent, during the past
year, and is nearly 19 per cent, greater than the average ratio for the 36 years. These
banks are now in a better condition in this respect than they have been since June, 1821.
In October, 1837, the ratio of specie to the circulation and deposites was as $1 to
$9,68; and in one year it was increased nearly 49 per cent., so that in October, 1838,
it was as $1 to $4,95; which is more favorable than it has been since 1821, except in
1830, and is hardly 14 per cent, less than the average ratio of $1 to $4,36, from 1803 to
1838, according to the above returns.

S T A T E M E N T OF T H E S I T U A T I O N OF T H E B A N K S I N N E W O R L E A N S ,

On the 21 st of October, 1839.
CAPITAL.

Deposites.

BANKS.

Nominal.
1. Canal and Banking C o ..
2. Carrolton R. R. & Bk’g . .
3. Citizen’s Bk of Louisiana
4. City B ank.........................
5. Commercial Bank.............
6. Consolidated Association.
7. Exchange and Bk’g Co....
8. Gas Light and Bk’g Co ..
9. Improvement & Bk’g Co..
10. Bank of Louisiana...........
11. Louisiana State Bank.......
12. Mechanic & T rader’s Bk..
13. Merchant's B ank............‘
14. Bank of O rleans...............
15. Union Bank of Louisiana.
16. Atchafalaya B ank...........
T o ta l.....................




4.000.
3.000. 000
12,000,000
2.000.
3.000. 000
2,450,000
2.000.000
6,000,000
2,000,000
4.000.
2.000.
2.000.
1.000.
500,000
7.000.
2.000.

Circulation.

Paid up.
000
3,999,750
1,949,350
6,866,666
2,000,000
000
3.000.
2,450,000
948,340
1,854,455
1,521,491
3,997,500
000
030
1,937,120
1,998,390
000
1.000.000
009
424,700
7,000,000
000
000788,945

00 194,224
00
75,351
67 1,892,831
00 631,164
000 00
254,193
00 544,173
00 179,276
00
32.786
50
176,073
00 337,084
00 722,872
00
84,903
00 223,136
00
52.786
00 442,070
00
72,302

31
78
17
34
61
61
34
69
19
16
35
21
98
20
71
52

284,000
278,205
428,450
526,770
239.620
195,635
357.620
72,080
146,410
292.722
291,210
178,475
150,530
184.723
638,470
129,710

00
00
00
00
00
00
00
00
00
50
00
00
00
00
00
00

54,950,000 41,736,768 17 5,415,231 17 4,345,533 50

Mercantile Miscellanies.

551

Statement of the situation of the Banks in New Orleans— Continued.
Discounts (f Liabilities— Assets, other
loans on real other than
gain­
estate, and those express­ than those ex­ Capital
bills ed, and pro­
bills if notes, ed, bills pay­ pressed.
receivable, fits undivi­
including
able, bonds,
ded.
capital of fyc.and divi­ municipali­
ty notes, cfc.
branches.
dends wip'd.

CAPITAL.

Local Bank
Notes.
1
2
3
4
5
6
7
8

57,070
6,965
62,335
70,890
34,095
25,745
129,555
4.903
12,465
33,015
37,241
34,125
204,297
17.456
32,770
29,772

9

10
11
12
13
14
15
16

Specie.

00
00
00
00
00
00
00
00
00
00
50
00
76
OC
0C
45

120,631 30
25,893 53
358,292 00
264,000 81
229,100 38
203,874 HI
14,065 74
25,055 73
47,169 69
441,906 28
333,464 88
56,081 37
402,463 36
44,107 82
234.299 10
37,120 65

3,091.003 63 211,188 25
12,176 28 536.416 91
1,073,723 89 264,109 84 544,730 80 258,246 17
3,902,69.8 94 1,470,019 75 929,371 38 698,665 36
2,919,052 42
46,084 60 216,733 79
50,870 48
1,885,766 52 333,745 22
85,500 10 446,188 63
1,969,384 18
268,949 07 521.963 52
802.888 92 117.928 76 101,656 01
78,857 26
2 556,919 65 2,032,754 47 1,083.955 77 208.616 22
406,589 36 382,425 45 295,305 75 151,834 85
4,565.142 95 126,319 64
78,080 79 893,448 35
2,376,975 16
10,208 80 164,943 90 123,856 64
25,540 01 344,794 63
2 097,550 69
1,500 00
1,935,548 23 110,COO CO 221,560 99 115.813 69
16,253 51 224,774 6C 195,683 61
488,370 45
492,340 85 2,235.130 98
5,93(1.211 97
729,454 15 170,192 76 258,693 04
78,728 25

782,702 71 2,847.497 95 36,731,281 11 5,297,516 93 4,833,669 94 7,117,978 86
anks............................................$4,345,533
Issue of the City B anks............................................
$4,345,533 50
Deduct notes held by the different B anks..............
782,702 71
Actual circulation......................................................$3,562,830 79

MERCANTILE

MISCELLANIES.

C U R R E N C Y OF G R E A T B R IT A IN .

A

T

able

of the Circulation of Great Britain at different periods, from 1810 to 1839,
inclusive.
In 1810.

Private Bank circulation..

In 1816.

In 1825.

In 1836.

In 1839.

£24,446,171 26,681,398 20.378,410 18.147.000 17.960.000
23,893,868 67,000,000 32,800,000 12,872,329 12,225,448
23,260.000 , 15,093,000 14,147,211 28.976.000 28.456.000
3’l70.066 4,179,549 6,411.349 6.540,000 7,00,1.000
2,080,340 3,230,570 5,230,750 4,680,290 4,500,000

T otal Paper circulation... £76,820,447 116,197,817 78,987,750 72,315,629 70,141,488
3,181,350 7,562,780 3,634,320 4,545,000 2,836,000
Bullion in the B ank..........
The paper currency of the United Kingdom of Great Britain is made up of five dif­
ferent kinds:—1. Bank of England notes; 2. Joint-Stock Bank notes, and Private
Bankers’ bills; 3. Exchequer bills ; 4. Irish Bank bills; 5. Scotch Bank bills,
VALUE OF THE POUND STERLING, OR BRITISH SOVEREIGN.

T he Journal of Commerce publishes a communication, evidently written by a mathe­
matician of high attainments, relative to the value of the pound sterling. The writer’s
remarks were elicited by the perusal of Condy Raguet’s treatise on “ currency and
banking,” recently published in Philadelphia. The writer thinks that if the book
should be generally read by our merchants and bankers it would prove highly useful,
although there are some positions of the author to which he cannot give his assent.




Mercantile Miscellanies.

552

In this work Mr. Raguet explains, first, the law s which regulate a currency, com­
posed entirely of the precious m etals; secondly, the law s which regulate a mixed cur­
rency, composed of the precious metals and of paper convertible into coin on demand;
and thirdly, the law s which regulate a currency composed entirely of inconvertible
bank paper.
On page 34, Mr. Raguet gives $4 87 7-120, as the true value of the British Sovereign
under the Gold Bill of 2.4th June, 1834. (T he correct value under that bill is $4 87
.137118367, and the true gold par of exchange with London.)
W hen he wrote this, Mr. Raguet appears not to have seen the third and last act of
congress, touching our coinage, approved 18th January, 1837, supplementary to the
act entitled “ an act establishing a mint, and regulating the coins of the United States,”
though he incidentally alludes to it in a note on page 186, near the end of his book.
Under this act, the value of the sovereign (pound sterling) 22 carats fine, is $4 86
.474743723303, or by extending the decimal, $4,8665x, which is the real par of exchange
with London, and quoted th u s: 109,496x or very nearly 9J per cent, premium on the
computed par of $4 44 4-9. But it is said to have been found by assay at the United
States mint at Philadelphia, within the current year, that the sovereign is only 9151
thousandths (21 97x carats) fine, which is 1 1-6 thousandths short of the legal fineness
—916 2-3 thousandths, or 22 carats. Consequently, the value of the sovereign is, in
fact, only $4 86.8914241101, or by extending the decimal, $4 8603x, which is now
the real intrinsic par of exchange with London, (provided the sovereigns are of full
weight,) and is quoted th u s: 109 35x, or 9 7-20 per cent, nominal premium, or the fixed
par of $4 44 4-9.
It should be noticed in this place, that the mode still adhered to by many, of quoting
exchange between the United States and London, is both obscure and absurd, as the pre­
mium or discount is founded upon the false or nominal par of $4 44 4-9. instead of the
true par of $4 86x. It would be much more simple and intelligible, to quote the course
of exchange at so m any dollars and cents per pound sterling or sovereign, taking $4 86
as the true value of the sovereign, and fixed par of exchange with London.
It should also be observed, that in the calculation of our duties at the custom house
prior to the 14th July, 1832, the value of the pound sterling was computed at $1 44.
From and after that date it was fixed by law at $4 80, which still obtains in estimating
the value of British goods, for the purpose of calculating the ad valorem duties.
T he banks receive and pay out sovereigns at $'4 85—one cent less than their intrin­
sic value, (supposing them to be of full weight,) making a difference in 100,000 sove­
reigns of $1,000, between the real and computed value. T his must be owing to the
officers of the British mint taking JilU-atLfantage of the “ remedy,”'and suffering the
sovereign to be short of the s)#ficarij; ip weight a's wgll as fineness. Or, it m ay be
owing to many of the sovereigns Which rek£\ this•-eaufrtry, having lost part of their
weight, and consequently value, through frequent use.

T
V

Mfh

SUGAR I N F R A N C E . ’ ’ *

\

T he Journalde ijowettcontamj^tlw!. folio wing letter froniHstVre, describing the effects
produced in th at town by the r e d t r e S j j i n ' o f ' - H B e T h e news of the reduc­
tion of the duty on sugar has been rece'rfectwJthlthe^gsaSSst enthusiasm by all classes
of our population. Not only were all the ships in harbor gaily dressed, and the houses
adorned with tri-colored flags, but the laboring class, whose work was diminished by
the smallness of the cargoes of ships from the colonies, paraded the streets in great num­
bers, preceded by a tri-colored flag, with a sugar cane surmounted by a nosegay, be­
low which was beet-root covered with crape, with this inscription, 1Death to the beet
root.’ ”
--------IMMEDIATE RELIEF.-

During the “ panic” in the money market some few years ago, a meeting of mer­
chants was held in the Exchange, to devise ways and means to extricate themselves
from their pecuniary difficulties. The great hall was crowded, addresses were made,
resolutions passed, committees appointed, and everything done that is usual and
necessary. After all this, one of the company moved that the meeting stand ad­
journed until some future day, when up jumped a little jobber, in a great state of
excitement, and requested the merchants to linger a moment, as he had something of
the greatest importance to communicate. The jobber was known to be a very diffident
person; and, as he had never ventured on the responsibilities of speaking on any for­
mer public occasion, all were anxious to hear w hat he had to say.—“ Gentlemen,” said
he, with evident emotion, and in the most emphatic, feeling and eloquent manner,
“ w hat’s the use of talking of some future day '1 W e want relief, I tell you!— imme­
diate relief!” and down he sat amidst a universal roar of laughter. The next day he
failed .'— M o r r is .