Full text of The Merchants' Magazine and Commercial Review : December 1863, Vol. XLIX, No. VI

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THE

MERCHANTS’ MAGAZINE
AND

COMMERCIAL REVIEW.
D E C E M B E R , 1 8 6 3.
THE CRISIS IN EUROPE.
COTTON AN ABSORBENT OF SPECI E.
T he late news from Europe, of a sudden rise in the rates of interests
at the great reservoirs o f money, at a moment, too, of the realization o f
large harvests, admonishes the commercial world o f the vast change
which is taking place in the currents of commerce, and of the new con­
dition o f affairs that must result from a continuance o f the present state
of things for any length of time. Since the peace of 1815, the commerce
of Western Europe has been immensely developed, and a materia] element
o f that development was the cotton drawn from the United States. Start­
ing at comparatively small amounts, the purchases, mostly by England,
rose to $200,000,000 per annum of cotton alone, and that cotton was
paid for altogether by the manufactured goods o f England and Europe.
Suddenly the supply from the United States ceased; the demand for goods
stopped with it, and great distress resulted. Still, cotton must be had,
and during the two last years the supply has been furnished by other
countries, who demand not goods, but coin in payment, and at exorbitant
rates. The drain o f coin thus occasioned is producing the serious results
of which the indications have reached us during the last few weeks. The
normal condition of commerce left Great Britain largely in the Uni­
ted States’ debt. The quantities of corn, cotton, tobacco, etc., which she
purchased more than paid for the goods she sold to this country, and thus
there remained a large balance due to the United States. This balance
was drawn against in favor of France, for silks, wines, etc.; in favor of
China, for tea, and of Brazil and Cuba, for coffee and sugar, in payment
for all o f which bills ran on London.
W ith France and the continent the operation was the reverse. She
sold to the United States large amounts of goods in excess of her pur­
chases, and for these goods she had a balance of bills running on London.
To illustrate, the trade o f France with the United States in 1860 was a
follow s:
Y O L . X L I X .-----N O . V I .
27




410

[December,

The Crisis in Europe.

France bought UnitedStates produce.................................
$40,834,986
$43,219,547
Sold to United States direct..................
Sold to United States via Europe........
16,979,110
----------------------------------------- 60,198,659
Balance due France.......................................................
Shipped in specie....................................................................

$19,363,673
21,371,986

Thus, France in 1860 sold enough goods to the United States to pay
for all the produce she bought of us, and received $21,371,986 in specie
besides. In 1861 her purchases of cotton, etc., were as large as ever;
but in the summer and fall the imports of goods into the United States
suddenly ceased. The consequence was, that instead of paying for the
cottons as usual, in goods, she was compelled to pay in specie. Inasmuch
as she did not sell her goods, she was deficient $40,000,000 o f bills on
England, and in October, 1861, the Bank of France suddenly lost
$15,197,581. To remedy this sudden loss, the Bank of France was com ­
pelled in the first week in November to raise its rate of interest to 6 per
cent, as it has now done. The same cause which made money scarce in
France made it cheap in England, and the Bank o f France borrowed
$5,000,000 at ninety days through the house o f Rothschild in London,
and $5,000,000 through the house of Baring. These amounts were drawn
against, and carried the Bank oyer the exigency.
In regard to the United States, they had sold their cotton, tobacco, and
rice, but did not buy the goods, consequently the import of specie was
very large. The specie movement at New York for four years was as
follows :
1859.

I86 0.

1861.

1862.

$8,852,330
42,191,171

$37,088,413
4,236,250

$1,311,964
61,872,391

Excess imports...............'..................................
“
exports.. $66,899,445 $33,338,841

$32,852,163
....................

$60,560,427

Im p orts.............
E xp orts.............

$2,816,421
69,715,866

This table shows the great perturbation which the war caused in the
specie movement. The regular current of exports was checked, and a
large amount of coin came back.
Fortunately for the United States, at
the moment when this cotton fund which paid so much o f our imports
was cutoff, the circumstances o f the crops in England and France required
a large amount of United States food. The export of breadstuff's stepped
in to supply the lack of cotton, and the drain o f gold from this country,
that would otherwise have been excessive, was checked. Meastime the
supply of cotton from other sources has grown up, and with it an intense
demand for money.
The course of this trade has been rapid.
Great
Britain was the chief recipient of the cotton crops, and in 1861 purchased
1,262,607,800 lbs., for which she paid $190,000,000, mostly in goods.
The largest portion o f the cotton— 80 per cent o f the whole— was of
United States origin, and was of a quality and cheapness that could not
elsewhere be reached. Indeed, as long as the United States crop was in
full supply, that of India, Egypt, Brazils, etc., was only in incidental de­
mand, and at prices which barely remunerated the grower, since long
transportation and shipping charges absorbed most of the proceeds.
When the United States supply was entirely cut off the prices rose rapid­
ly. The rates in Liverpool have been as follows for middling:




411

The Crisis in Europe.

1863.]

Orleans. E . Indies.

1860.
1861.
1862.
1863,

13 cU.

8±

21

l » i

55*
55

31*
39

E g ypt.

Brazil.

15*
20
49
52*

16
20*

5 l"
55*

The natural effect o f this immense rise in price in the Liverpool mar­
kets was to stimulate production in every country where cotton will grow.
It is an immense bounty held out to all the world to raise cotton for the
English spinners. The effect o f such a bounty cannot be realized for some
years, since the means of planting and growing on a large seale do not
exist. A drawback upon the effort to meet the demand exists in the un­
certainty of its continuance, since a cessation o f the war and a resump­
tion of the growth on the part o f the Southern States would gradually
destroy the market for other cottons, as none o f them can compete either
in quality or price with the United States descriptions. It is also the
case that where a new and large demand is made upon a country for raw
products the only means of payment is specie, because the markets for
goods do not grow in the same proportion. The operation of the de­
mand is manifest in the following Table o f the qantities and values im­
ported into Great Britain from each country in the first seven months
in 1861 and 1863 ;
C O TTO N

IM PO R TE D

INTO

G R E A T B R IT A IN .

,------------ 1861.------------- s ,------------ 1863.-------------,
Pounds.

United States..
Brazil...............
E gypt...............
East Indies___
Other countries

Value.

Pounds.

'758,881,000 $116,108,938
2,399,697
7,450,100
1,304,099 15,850,350
28,802,700
4,867,529 63,108,337
117,202,200
12,385,347 174,863,812
3,734,775
532,932 48,231,225

Value.

$997,770
6,521,079
26,345,455
57,599,835
17,778,999

Total...........
916,070,775 $135,198,845 304,353,421 $118,243,138
16,955,707
Decrease............................................................. 611,717,354
This is a curious result.
In the present year England has procured
only one-third of the quantity of cotton which she purchased in 1861,
yet she has offered nearly three times the prices for it. In other words,
the average price in 1861 was I f f cents, and in the present year 3 8 f
cents. The result o f the demand is, that Brazil has received four times
as much money as in 1861 ; Egypt, six times as much ; India, nearly five
times as much, and many minor sources o f supply have increased some
$17,000,000 in value. The amount o f it all is simply this— England has
paid nearly as much in 1863 as she was called upon to disburse in 1861,
but has got only one-third the cotton for it, and, what is of still greater
importance, in the former year she paid mostly in goods, but this year
she has been required to pay in the precious metals, or thus:
Paid United States in goods......................
Paid other countries in specie...................

1861.
1861.
$116,108,938
$997,770
19,089,907 117,245,368

The payment of this large amount in specie has been possible only by
reason of the supplies of the metal derived from the United States, which




[December,

The Crisis in Europe.

412

in ceasing to supply cotton sent the gold to buy it elsewhere, and also food
to make good the short harvests of England and Western Europe. The
wealth thus conferred upon those comparatively poor and remote nations,
at the expense o f the wealthy central nations^ will doubtless result in caus­
ing a greater growth of commerce with them hereafter. The capital, so
planted, will doubtless become prolific of new industries when the usual
course of trade in America, being resumed, shall have again caused their
cotton industry to decline. The wants of the world are, however, so rap­
idly outgrowing the capacity o f the United States to supply the cotton de­
mand, that many years must elapse before, if ever, the old price is reached.
Meantime, the high prices o f cotton, which have brought out these large
supplies that are to be paid for in specie, continue to operate. The quanti­
ty arriving in England is increasing, and, as a consequence, the sum of coin
to go becomes greater. For nine months, last year, the sum was £11,000,000,
this year it is £26,000,000 ; next year, the amount may be again doubled,
and the figures become formidable. Already they exceed the sum of the
joint production of California and Australia. At the same moment, the
political differences in Europe have caused much hoarding of gold, and the
exports of the metals from England, for nine months, have been as follows:
SilveT.

G old.

To Europe........................
To India, etc.....................

*

$1,689,620
31,136,910

$38,683,316
15,811,650

$46,212,995
41,554,620

T otal.

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

39,426,590

54,401,025

93,821,615

This drain of specie, added to the hoarding in Europe, has now produced
pressure in Europe and England, both. The losses o f the Bank of France
compelled her, some time since, to raise the rate of interest to five per cent,
and this was suddenly followed by the Bank of England on the 3rd to five
per cent, and on the 5th to six per cent. The Bank of France immediate­
ly put the rate up to six per cent, and money rose in value in most other
cities.
This has taken place, notwithstanding that the crops were never better
than this year. Probably the crops are $300,000,000 better in England
and Western Europe than last season, and very fortunately so, since if they
were compelled to purchase goods as largely as last year, the crisis would
be greatly intensified. As far as England goes, it appears to be more a
demand for money than capital, since the latter seems to be very abun­
dant. That abundance, however, it must be borne in mind, is born of the
great plenty and cheapness of money during the last two years, in which,
although there has been much suffering among operatives for want of work,
the manufacturers and holders of goods have realized fortunes in the rise
o f prices, which the forced diminution of production brought about. The
reverse of the picture is now at hand: money is becoming very dear, goods
hereafter can he produced only at enormously increased cost, the consump­
tion will be, of course, reduced, and ability to export on former terms great­
ly lessened. She will be obliged to pay coin for materials, and compelled
to sell her goods very eheap to get that coin. Other nations will be able
to compete with her on better terms. Another year, too, may find her
harvests deficient, and the chances are that the commercial preponder­
ance of England may pass away amidst a suspension o f specie payments
brought about by the causes to which we have alluded, and which are
daily being developed.




1863.]

The Depreciation o f Gold.

413

TIIE DEPRECIATION OF GOLD.
O f the fluctuations that take place in the value of money, those which
occur during limited periods and are governed by the greater or less emis­
sions of paper money are the ones chiefly occupying the attention of mer­
chants and bankers; and yet such fluctuations are by no means confined to
a paper currency, nor restricted within the limit of a few weeks or months.
The ease with which paper may be put out or retired make the changes
in prices dependent on its action more frequent and marked than those
which attend the far more important, though slower, mutations in the value
of the metallic currency recognized among all civilized nations. As these
usually extend beyond the limits of a life-time, and produce results only in
the lapse of generations, they interest less individuals engaged only in look­
ing after their individual fortunes than they do the statesman who has, with
a wise forecast, to care for the future of the nation over whose councils he
is called to preside. Hitherto, in the experience of the world, money has
been formed of the precious metals, because its value is very generally re­
cognized, because it has an intrinsic value, and because that value has been
more stable than that of most other commodities.
Much discussion has,
however, arisen of late as to the probable effect of the greatly increased
supply of gold— whether it will not and has not caused a corresponding
depreciation in the value of the precious metals In a former number of
the magazine we gave our reasons for believing that, compared with silver,
gold would retain its relative value. W e now propose, by very briefly trac­
ing the history of the precious metals and their fluctuations, to show that,
notwithstanding this wonderful increase in the production of gold, there is
no reason for concluding the precious metals will depreciate. There will be,
as there has been heretofore, fluctuations in its value— seasons of abundance
and scarcity— but no permanent depreciation.
And in this connection it is important to remember that the fact that gold
and silyer have been used as currency constitutes, in a great measure, their
intrinsic value.
It is no doubt the case that a great deal of time, labor,
and expenditure of capital are required to produce gold ; but that expendi­
ture is incurred because the gold is the universal currency. Take that func­
tion from it and one year’s product in California would glut the markets of
the world, and gold would be a very cheap metal. In the early ages of
commerce, however, there was no California, and gold was supplied no
faster than the comparatively limited numbers o f the people and commerce
of the world required. With the rising power o f the Roman empire, ab­
sorbing the vast cdmmerce of Carthage and adjoining States, the wealth
and commerce of the world were concentrated, and the supplies of the pre­
cious metals governed prices in imperial Rome. The military operations <5f
the empire required large expenditure, which were gathered from the lands
and producers of that day. The taxes so imposed were proportioned to
the prices which commodities commanded in the currency of that age. But
the Roman world was surrounded with populous but barbarous nations,
which were to be civilized and taught the arts of peace through the power
of the Roman arms. Just so fast as new nations made progress in the pro­
duction of wealth, and consequently in commerce, just so fast they required
a portion of that gold currency which had theretofore only sufficed for the




414

The Depreciation o f Gold.

[December,

wants of the imperial country. As there was no means of increasing the
supplies of the precious metals, money became scarce in Rome. The im­
perial expenditures were, however, kept up per force at the former rate,
and the weight of taxation increased in proportion as gold became dear,
until towns and provinces were crushed and wealth perished where produc­
tion ceased. During fifteen centuries succeeding the Christian era the value
of gold rose in proportion to other commodities.
From the time of A u ­
gustus to the discovery of the American mines it rose one-third in value.
As extended industry, increased wealth*, and commerce were developed,
the want o f money was urgently felt, and many devices were resorted to, to
make a “ little money go a great ways.” The favorite mode of doing this
was to reduce the quantity o f metal in the current coins. In England, from
1066 to the end of the eighteenth century, seven hundred and fifty years,
the weight of silver coin was reduced thirteen times. One pound weight
of silver was originally coined into twenty shillings, but the number o f
shillings was gradually increased until one pound of silver sufficed for sixtysix shillings. The same quantity of metal was made to do greater duty.
The gold coins have fared worse. They have undergone twenty-four suc­
cessive alterations, until an ounce of gold, instead of 20s. lffjd ., is now
made into 77s. lff^d. In Scotland, the quantity o f silver in the same coin
is reduced to one-fortieth of its original quantity. In every country of
Europe, as wealth and trade demanded more money, without there being
any means of increasing the supply of the material, the old stock was spread
out more thinly to supply the deficiency. This was not done without great
distress. The constant downward tendency of prices, occasionally relieved
by the change o f standard, which benefited debtors at the expense of cred­
itors, was severely felt by the industrious masses. The progress o f England
and Western Europe may be said to have been strangled by the want o f
money. In the reign o f H enry VIII., the coin was greatly reduced. Un­
der H enry VII., one pound of silver had been coined into 37s. 6 d . ; it was
now coined into 140s. 4d. This produced disaster. At that juncture,
while the world was so suffering, the discovery of the mines of America
poured forth relief. An immense supply of the metals made its presence
felt, and enabled E lizabeth to restore the English pound o f silver to sixty
shillings. Under the influence o f this supply o f metals, the trade o f Eng­
land and the prosperity of Western Europe took a new start. Commerce
became more developed and prices improved, thus absorbing the metals.
M. C hevalier estimates that in the last three centuries the mines have
added $10,000,000,000 to the supply of the metals, and the supply has had
a three-fold operation. It has measurably supplanted barter trade with
money transactions; it has raised the level of prices, by diminishing the
value of money; and has stimulated the production of wealth, by increas­
ing the reward of labor. This greater supply of money benefited producers
at the expense of capitalists. Gradually, population and wealth increased
faster than the supply of the metals. Money was again becoming dear,
because of the vastly increased area for its use and the vigor of the demand
for circulation. W hen peace took place in Europe, in 1815, and trade was
everywhere resumed with vigor, under the influence o f steam and new in­
ventions, the demand for money was still greater, and it became perceptibly
scarce, so much so as to produce the greatest distress among the people. In
Great Britain, the distress manifested itself in popular disturbances, and re­
sulted in the passage o f the Reform Bill, which was supposed to be one




1863.]

The Depreciation o f Gold.

415

remedy for the prevailing trouble. The same causes produced the revolu­
tion in France in 1830, in Poland, in Spain, and the separation o f Belgium
from Holland. Financial revulsions were frequent, from paper inflations,
that were designed to remedy the want of money which was strangling in­
dustry. The gold mines o f the Ural Mountains then began to affect the
markets of the world, and increased the supplies of the metals. But it was
only when the common cause of distress produced the revolution in Europe,
in 1848, that the era of relief was reached. The gold of California was
then discovered, and began to pour its fertilizing stream over Europe at the
moment a new Napoleon restored the empire to France. Australia soon
after added its supplies, and since then Siberia, California, and Australia
have vied with each other in furnishing the precious metals to the use of
Europe. As a consequence, the general prosperity has been marvelous.
The exports of the great nations have more than doubled. Prices have ad­
vanced, rents have risen, and the debtor classes have found their burdens
gradually lightened at the expense of the creditors. The immense national
debts of England and France have been virtually greatly reduced by the
lact of a cheapened currency, in which the taxes are paid.
There is no prospect of any diminished yield to the mines. On the other
hand, new mines on the Pacific slope, of greater richness, are continually
discovered, and those of Mexico are now likely to be more efficiently worked.
In South America, Major R ickards , inspector of the mines for the Argen­
tine Republic, gives the most glowing descriptions of the exhaustless nature
of the mines of the Andes. A ll these are only second to the great promise
of the Siberian mines. In short, Australia, California, Oregon, Mexico,
British Colombia, South America, and Russia all promise increasing sup­
plies for at least a century to come.
W ith this prospect before the world, it would be natural to expect a
great permanent depreciation in the value of the metals. Still, we do not
think it will be the case, for there are counteracting agencies at work. Thus,
for instance, in what has been said above, we have seen that there have
been periods in the world’s history, other than the present, when the pre­
cious metals were abundant; but they have been invariably followed by
periods of scarcity; that the cause of this abundance was the sudden in­
crease in production, as is the case now, but this increase stimulated indus­
try, until the metals became spread over a greater surface of the earth, and
then another season o f scarcity followed. This same agency is at work
now, and although the production of gold has greatly increased, it is rapid­
ly being carried into new countries where there is a demand for it. Many
seem to forget that really a very small portion o f the human race is yet
stocked with gold.
,
A professor of the University o f Berlin has recently published the result
of his researches as to the population of the earth, according to which Eu­
rope contains 272,000,000, Asia 750,000,000, Africa 89,000,000, America
200,000,000, and Polynesia 2,000,000— a grand total of 1,283,000,000
inhabitants. The population o f Europe is not yet stocked with metals in
a degree sufficent to produce any marked change in value.
Of the popu­
lation of America, about 50,000,000 may be added to that of Europe and
we shall have 322,000,000, or not one-fourth of the human race, that are
as yet under the influence of civilized commerce. Thanks to steam and
other appliances, however, commerce is fast extending itself. The vast pop­
ulation of China, with their industrious habits and trading propensities, are




416

The Monetary Unit and Financial Economy.

[December,

yet mostly addicted to barter, but are thoroughly inoculated with the love
of gold. The large population of India absorbs immense sums. In the
last fifteen years, $600,000,000 of specie has been sent tbither from Europe.
Africa is being penetrated by traders, and the circle of her commerce ex­
tending. At the same time gold is drawing crowds of industrious persons
into the hitherto wild regions o f Siberia, Australia, and California. Each
of these gold seekers produces a value four times as great as before, and,
as a consequence, employs four times as many producers of other commod­
ities. In each of these regions new nations of great wealth are forming.
It follows that while new sources o f gold supply are being discovered,
still larger fields for its employment and absorption are being explored and
opened. As if to give a new impulse to this outward current of gold, the
vast production of American cotton is suspended, and India, Egypt, Brazil,
and many countries of Africa are called upon to furnish cotton, to the extent
of their capacities, at fabulous prices. The cotton fields of those countries
have become to them rich placers, which attract gold in unwonted streams,
raising prices, advancing values, stimulating industry, and promoting the
general wealth.
It is obvious that if these or similar elements are to remain in full
operation, expanded to gigantic proportions in the lapse of a prosperous
century, there will be not only no depreciation in gold, but the present pro­
duction will even fail to supply the increased demand.

TEE MONETARY UNIT AND FINANCIAL ECONOMY.
N otwithstanding the numerous pages I have contributed to your
magazine on the subject o f Political Economy, I have never given you
my ideal of the true system of national finance. Dealing with things as
they are, and opposing the factitious principles and arrangements of a
false economy, I have scarcely thought it worth while to present views
that may be deemed abstractions, however desirable may be their attain­
ment. But it is clear to my mind that an entire change in our system o f
currency is inaugurated by the necessity on the part' of the Government
o f providing a circulating medium in obtaining a loan of capital from the
people. Common sense at once discovers the sophistry of the old system
by contrast with the new. The people see that the capital they are now
lending without interest on Government notes, they have all along been
lending on bank notes, not only without interest, but that they have been
needlessly and very absurdly paying interest on their own capital thus
loaned to bring the bank notes into being— a system which has com­
pelled the sale of goods on credit and covered the traders of the country
with embarrassment. In this way they have been under the necessity o f
lending capital when they have no capital to lend— when their normal
and necessary condition is that of borrowers.
W ith this knowledge, and the manifest advantage of cash sales, conse­
quent upon a pre-existing circulating medium in the place of so much
bank debt, besides the saving o f taxes needlessly imposed for the benefit
of fundholders on so much public stock that would otherwise be created,
the public will surely give to the bank debt currency system leave to with­




1863.]

The Monetary TJnit and Financial Economy.

417

draw. I consider it to be already virtually dead, requiring only an act
of taxation to bury it beyond resurrection. Whatever good there is to
follow will depend upon the aggregate truth and faithfulness to honest
principle and real science in the ideas o f the people. I wish, therefore,
to present mine, however impracticable they may seem, as a contribution
to the fund of general intelligence on which our future currency and
financial economy must be founded.
It is not the proper business of traders in merchandise to lend capital.
It is the business of banks and bankers to deal in loanable capital, and of
traders, generally to buy and sell goods, and borrow capital o f banks and
bankers when necessary or desirable. In this natural and proper way
of doing business, the loans o f the banks would be vastly increased, in
being limited only by the amount of capital they could borrow. When
we reflect on the great amount of merchandise sold on credit in this coun­
try, all of which is somebody’s capital loaned and borrowed, we may form
some conception o f the vast business that would flow through the banks
if they would give it freedom from the crippling operation of their debt
currency in demand liabilities for debt against debt— for fiction against
fiction.
My ideal of the true system o f finance is, that everything unreal, facti­
tious, and difficult o f comprehension, in respect to it, should be discarded.
I would, therefore, discard the unstable dollar to begin with, and adopt
the troy ounce of gold as the unit o f price and value ; for the dollar is
almost a myth, it means everything and nothing, in common apprehen­
sion, and is really a mysterious thing to some intelligent minds. It is
silver, of various weights and various degrees of purity ; it is of gold, or
it is of paper, according to the notions that happen to prevail in any
country where it is adopted as a medium or instrument o f exchange. N o­
body knows where it came from, nor when it first appeared on the face of
the earth. Its authentic written history dates back to the beginning of
the sixteenth century, when it became known in Bohemia as an ounce of
silver of a certain purity and accuracy of coinage, which made it a reliable
equivalent and instrument of exchange. Now it has shrunk in that coun­
try to 14 dwts. and 6^- grs., alloyed one-fourth ; it is the “ thaler,” worth
about 70 cents by our gold measure. In Italy, it is the “ talavo,” weigh­
ing 18 dwts. and 22 grs., alloyed 40 per cent, worth about 7 l£ cents. In
Spain, it weights 17 dwts. and 8 grs., and would be worth here as bullion
$1.06, payable in gold, and as a foreign coin it would fetch $1.09 or $1.10
for export to China. Our old silver dollar, coined prior to 1834, weighed
lY dwts. and 10 grs., and would now exchange as bullion for $1.06j-‘ of
gold. Recently, our dollar was, of gold, alloyed one-tenth, weighing
25.8 grs., worth 100 cents; to-day it is of paper, and the gold dollar is
worth 156 or 157 cents. The legal paper dollar cannot be said to be
worth anything— the worth it relates to being in our property, which the
Government may take by taxation to pay it when necessary ; it is not in
the paper and in the property also, but we can borrow on the paper dol­
lar 64 cents in gold. The passing of a paper dollar is merely borrowing
capital on the credit of the promisor ; it pays nothing. Thus we see the
dollar is just about as uncertain a thing as can be contrived for an instru­
ment of exchange ; and the man who says it is always worth a hundred
cents does not know what he is talking about. It is a staggering thing,
thoroughly demoralized, that cheats one half of the community, and more




418

The Monetary Unit and Financial Economy.

[December,

than nine-tenths of the traders, out of their just earnings. I would abol­
ish it altogether.
I would have an established weight, a known reality, something plain
to the commonest apprehension, as the unit of price arid equivalent of
other values. I would adopt the troy ounce of gold o f the present stand­
ard purity, and coin the same in both a decimal and an octave division of
numbers. There could be no mistake about this, and the Government
could make nothing else of it but an ounce of gold. It would put at rest
the fallacy that Government fixes the value of money by establishing the
weight and purity of coin. Very few people comprehend that the act of
the Government in coining is simply an act of inspection, like determin­
ing the quality and weight of a barrel of flour, and that the value depends,
not upon the stamp, but upon the supply and demand in the one case as
in the other. More gold cheapens gold, as more flour cheapens flour, and
it could scarce fail to be seen, if bankers put upon the markets promises
to deliver ounces o f gold when they have none to deliver, that the prom­
ises being accepted as gold must produce a factitious increase o f currency
and local depreciation of gold in the market, and infallibly a loss to the
community, dealing in such promises, of their whole amount. W e can­
not teach this truth to unpracticed thinkers upon the subject, because of
the mysterious character of the dollar. It is an unequal fraction o f the
troy ounce, liable to alteration in character and quantity by the Govern­
ment— everything by turns and nothing long— until people have come to
consider it an artificial and temporary contrivance that anybody can make
out of any sort of metal, or out of paper, as good as the best, with Gov­
ernmental sanction.
An operation of this kind in wheat has recently been developed in
Chicago, which illustrates, perfectly, the principle and effect of our ficti­
tious currency. The warehousemen, seeing that their warehouses are
replenished as fast as they are emptied, put upon the market warehouse
certificates of wheat for delivery on demand, on their own account, when
there was no such wheat; but they thought they could— and they gen­
erally could— meet the certificates without danger o f defalcation. The
consequence was, that there was constantly more wheat offered for sale
in Chicago than had any existence.
A rudimental lesson in political economy was here plainly and practi­
cally taught. The owners of the wheat found its market price depressed
to correspond with the apparent increase of quantity, and that they were
competing against their own capital in the hands of the warehousemen
for the sale of their own wheat. By the law of value, in supply and de­
mand, they were losing, in the degradation of the value of wheat, as much
as the fictitious certificates amounted to, and having acuteness enough to
discover this in their special traffic, they procured the passage and en­
forcement of a law which put a stop to the damaging and abnormal busi­
ness. Why had they not— why has not every man of common sense—
acuteness enough to discover the same damaging principle in our fictitious
currency ? The owners o f money, or of capital invested in the currency,
are competitors against their own capital, precisely in the same way, and
with the same result. Their warehousemen are the banks who issue on
their own account certificates and credits for dollars of money, when there
is no such money belonging either to themselves or others. The whole
currency'is depreciated by the imaginary dollars thus circulating in the




1863.]

The Monetary Unit and Financial Economy.

419

market; but the depreciation is in value, not in price, because the dollar
is the unit and measure of price. The dollars of money lose so much of
their exchange value, or purchasing powers, precisely like the bushels of
wheat, by the offering in market o f money that has no existence.
This simple truth is obscured by the mysterious character of the dollar ;
but as every person comprehends that an ounce of gold, like an ounce of
anything else, may rise or fall in value, the adoption of the ounce as the
unit of price would put an end to the sophistication by which the country
is plundered of its capital in dealing with other countries, in paying a fic­
titious price of our own creation for imported commodities, while our
exportable commodities must be sold to meet the foreign demand, in ac­
cordance with the measure of price of foreign markets, or remain at home.
And it would abolish the iniquity b}' which individuals are plunged into
bankruptcy and ruin, in making obligations to the banks and to each oth­
er to deliver dollars, or their equivalent in capital, never created, and
which, consequently, can have no existence.
W ith the ounce for our unit in place of the dollar, the nomenclature of
the inferior coins should be preserved of dime, cent, and mill. The fol­
lowing is a schedule of the proposed coins, with their equivalent values
under our present gold dollar system :
1 ounce of gold—-10 dimes, or 100 cents, or 1,000 mills— equal to $18 60
9 30
5
“
SO
“
500 “
i
“
2* “
25
“
260 “
“
4 65
i
“
2 32 50
li “
1 2i “
125 “
“
4
“
1 86 1
10
“
100 “
“
1 dime
“
5
50 “
“
0 93
i “
2i “
25 “
“
0 36.50
i “
1 cent of silver,
10 “
0 18.60
5 “
0 09.30
i “
^ ll
<C
0 04.65
24 “
C(
0 01.86
1 mill of nickel,
«(
0 00.93
4 “

The fractions of the dime, and, indeed, the dime itself, should be coined
in the ring form, to avoid the diminutive size o f the disk that would be
unavoidable otherwise, in coins of such small weights. It would be bet­
ter, for the sake o f uniformity, to coin the fractions of the dime of gold
than silver, which latter would be appropriated to the cent and its frac­
tions, even if there should be some inconvenience in the diminutive size
of the gold coins. Besides, gold is our staple product, rather than silver,
and the greater the use we make o f it the higher is its local value, and
the more value we must obtain for it in international exchanges. The
schedule, altogether, comprises precisely the same number of pieces as our
existing coins. I think there would be no difficulty in expanding the
diameter of the ring to avoid the inconvenience of diminutive size in any
of the coins, and if the ounce, with its fractions, were coined solid, while
the dime, with its fractions, were coined in a ring, the arrangement would
be doubtless as convenient and as perfect as any that could be devised.
Another, and perhaps weightier, argument in favor of the most extensive
use of gold is, that it is our standard, and the closer we adhere to it in
the coinage the more accurate are our values.
No one, accustomed to the use of a decimal currency, doubts its supe­
riority to a system o f vulgar fractions and duodecimals, like that of Great




420

The Monetary Unit and Financial Economy.

[December,

Britain. But no system is perfect that does not admit of a ready division
of the unit into eight parts, without remainder, to measure price by
halves, quarters, and eighths, to correspond with the natural division of
quantities. W e do not buy the tenth o f a bushel, or of a pound, or o f a
yard, of anything; we buy square quantities, and have square prices to
pay for them ; we need coins in square numbers to harmonize with this
natural division of things. The currency of France is so inconvenient in
this respect that French writers have proposed to abandon it for an octave
system to measure price by eighths. But the diminutive nature o f the
French unit— the franc— is a still greater objection to it, because o f the
long array of figures required to express any considerable aggregate of
prices. Our dollar is, in this respect, too small. The ounce, as here
proposed, obviates this objection, while it provides a combination o f dec­
imal and octave numbers perfect for all purposes relating to the currency.
Troy weight is the most ancient of the weights used in Great Britain.
It is the standard weight of the kingdom, and of course is referred to for
the verification of all other weights. It has, from the earliest records o f
English commerce and science, been employed for the compounding of
medicines, for the weighing o f gold and silver and jewels, and for all ex­
periments in chemistry and natural philosophy. It is, therefore, perfectly
familiar to commerce and science, and while we employ it in weighing
the precious metals the troy ounce seems to be the most natural as well
as convenient weight for the unit o f our money. It would be an effectual
aid to the Government, in recovering its constitutional control o f the cur­
rency of the nation, thus to change the nomenclature and the weight of
the coins. W e could the more readily distinguish the currency furnished
by the Government from that created by the banks— accept the former,
and discard the latter.
W e should have, for a period, the trifling inconvenience o f using the
affix, new, for the new coins below the denomination of the ounce. W e
should say, the new dime, the new cent, and the new mill, until the old
pieces were recoined or passed out of circulation ; but this inconvenience
would be no greater than we have already experienced in getting rid of
the old silver dollars, and the old copper cents, which differ essentially in
their value from the new ones. The process of changing the old curren­
cy to the new would be a very simple matter, which any schoolboy would
at once comprehend. It would require merely to divide the sura of d ol­
lars and cents by the number 18.6; the quotient would be ounces and
decimals of the ounce.
In the next place, I would recover the capital, that is, the money, be­
longing to our currency ; an amount equal to about one-tenth the sum of
our circulating capital, or one twenty-fifth part o f the whole property o f
the nation, which is now deficient, by gradually, if not rapidly, converting
the paper into money ; because it would be a gain of business, as well as
o f individual and national wealth, at every step. Our people must pro­
duce commodities to exchange for gold and silver to recover this capital,
or they must produce the gold or silver itself. In either case, they ac­
quire so much capital individually, and, at the same time, augment by so
much the wealth of the nation ; for the wealth of the nation is but the
wealth of individuals.
If you owe me and I owe you $1,000, our assets and liabilities are so
far alike, and so far neither o f us is worth anything; a re-exchange of ob-




1863.]

The Monetary Unit and Financial Economy.

421

ligations annihilates the debt. This is the principle of our debt currency,
whether created by the banks or the Government; there is nothing in it,
and when the kiting is no^ longer agreeable or possible to either or both
parties, a set-off annihilates so much currency and so much price along
with it. The element of the debt currency o f the Government is unas­
sessed taxation ; individuals owe the Government, and the Government
owes individuals an equal sum, the adjustment of which leaves just nothing
at all. There is no wealth, therefore, in the Government d ebt; the wealth
is in the property of the people that is bound to pay i t ; we cannot double
the wealth by adding the debt to the capital or property that is bound
for it. Obviously, were all the debt of the Government and the people
instantly annihilated it would make no difference in the aggregate wealth
of the nation. But if you or I owe $1,000 of gold, it is so much capi­
tal that the Government may borrow on its Treasury notes, over and above
anything it can have if the gold is not here, and a debt currency occu­
pies its place; it is so much individual and national capital and wealth.
I say, therefore, I would recover this capital to the currency and to the nation
which is now repelled by the demand notes and credits o f the banks, and
by the notes of the Government. I would have the money flow into the
national treasury, or currency bureau, naturally, and either retire the
notes, as convenient, by paying out coin instead of the notes, or I would
retain coin and bullion in reserve, ounce for ounce, against the outstand­
ing notes, and thus convert then into certificates of deposit. It is the
most preposterous nonsense in the world to suppose that money and the
promise to pay it can both be kept in circulation together and made avail­
able as capital, and that we can thus eat our cake and have it too. If
we circulate the promise, without reserving the money against it, we
must part with the money and lose so much capital, absolutely, by the
depreciation of the value of money to correspond with the factitious in­
crease of the currency. If we circulate the money, or the certificate of
deposit with the money in reserve against it, we possess so much the
more capital or working wealth for the prosecution of war or the arts of
peace.
Nothing can be more certain than the fact that there is never a defi- ciency of currency in this country when we are exporting gold and silver,
and the heavy exports o f these metals now taking place from New York
and direct from California, with the large and increasing premium on
gold, demonstrate a depreciation o f its value, from a plethora of debt
currency, which can only be accounted for by extreme ignorance o f the
first principles of political economy on the part of those who manage the
fiscal concerns of the nation.
To check, for the present, this ruinous course of debt, depreciation, and
loss of capital, the Government should authorize the chartered banks and
individual bankers, who hold the purse strings of the nation, to borrow
capital already invested in their bank notes and pre-existing “ deposits”
by the people, as well as the capital invested in the demand notes of the
Government. This fund would be paid into the banks by its lenders, in
the pre-existing circulating medium, and loaned to the Government by
the banks without augmenting the currency or depreciating the value of
money at all. The same funds, having been distributed by the disburse­
ments of the Government, would return to the banks in the deposits of
the people in a very few days or weeks, on the average, when they would




422

The Monetary Unit and Financial Economy.

[December,

be loaned again ; and they might thus be returned and reloaned fiftytimes without expanding the currency or doing any harm to the capital
of the country.
There is an abundance of capital for this purpose in the hands o f the
people of the loyal States; it is increasing faster than it is being con­
sumed; the consumption of the war only stimulates production so much
the more in excess o f the demand. Two wars like the present would not
diminish the aggregate capital of the Northern and Western States a
fraction, since our power o f production exceeds any demand that can be
brought upon it. Never since the nation was born has its general busi­
ness been so active and profitable and its aggregate wealth increasing so
fast as now.
But the Government is embarrassing itself and the nation by creating
currency in the fictitious credits of banks, instead of borrowing capital'
loaned on the pre-created currency o f these institutions and on its own
pre-created notes. When loanable capital was going a-begging at 4 per
cent per annum in 1861. and the Secretary of the Treasury was author­
ized to pay 7t37 per cent, with the currency reduced’ below the specie
measure, the exchanges of the world consequently in our favor, and spe­
cie flowing into the country from all directions, he should have borrowed
capital through their agency, and paid them a fair profit for i t ; instead
of which he and they kited into existence a fictitious credit of SI 50,000,000,
increasing their demand liabilities from •'1427,000,000 to about $577,000,000, against 887,000,000 of coin which they held, and thus created
8150,000,000, or thereabouts, of fictitious currency. Of course this de­
preciated our money, turned the foreign exchanges against the country,
brought upon the banks a demand for specie which they could not meet,
because they and all the other debtors of the country were being called
upon to pay a spurious price o f 8150,000,000, for which no equivalent
value was ever created. When it comes to paying debt, instead of kiting
it, a value must be produced and tendered— the product of capital and
labor; the spurious price created by a debt currency declines with the
decline of the volume o f currency that makes it, and cannot be paid.
An operation of this nature was taking effect in the fall of 1861. Money
was being demanded to be taken out of the country for the 8150,000,000
of spurious currency, because enough of it had been put in circulation
to exceed the natural money measure o f the currency, to which extent it
could not be paid; and the only alternative was a general suspension of
money payments.
WThen gold and silver are mixed, and circulated as currency, there is a
depreciation of their value, but there is a perfect compensation in the in­
crease of capital. It is the same with wheat; an increase of quantity
reduces its value, but it is an increase o f capital and wealth, tiotwithstanding. The miner who produces gold, although the production reduces the
value of gold, improves his fortune and increases the capital of the na­
tion precisely as much as the miner who produces copper, or lead, or iron
to an equivalent value; any surplus will be exported in exchange for
other capital in either case. But he who produces a debt currency de­
preciates the value o f gold and silver and expels so much capital in dead
loss to the nation. There is no compensation, because there is no equiv­
alent augmentation o f capital to exchange for other capital. The wealth
of the nation consists of value, n#t of price.
It is well said by J ohn-




1863.]

The Monetary Unit-and Financial Economy.

423

S tuart M ill , “ If values remain the same, what becomes of price is im ­
material, since the remuneration of producers does not depend upon how
much money, but upon how much o f consumable articles they obtain for
their goods.”

But to return to my ideal of the true system of financial economy. To
reeover the capital belonging to our currency, I would tax the^debt cur­
rency of the banks out o f existence, and restrain the paper issues of the
Government, constantly, within the sum necessary to keep the foreign
exchanges in favor of the United States, until the reserves should equal
the circulating notes—-a matter perfectly easy of accomplishment when­
ever the Government chooses to control the currency. The criterion of
the natural money measure o f our national currency is the nominal pre­
mium on sterling exchange o f 9^- per cent, because London is the great
clearing-house or center of the exchanges of the commercial world. It
is the purest folly in the world to permit this nominal premium to be ex­
ceeded while there is a dollar of paper or of bank balance of currency
in existence, and the specie exported in consequence, as it is being export­
ed now, is so much national capital thrown away.
I would have the Government issue no new notes payable to bearer,
and none whatever of a less denomination than two ounces— equal to
$37 20 of our present currency— for general circulation, that the people
may become accustomed to the use of money, and familiar with the truth
that all the gold and silver we get is capital, which comes by the employ­
ment of labor, to the increase of business and of public and private
wealth ; while paper currency can be made by the ream or the bushel,
without augmenting the business or the wealth o f the nation a single
fraction. It is only creating a false price and destroying so much paper
in the production of moonshine. But I would have the Government in­
stitute a system of post-office orders, by which, in exchange for coin, all
persons could be accommodated with small orders for any fractional part
of an ounce or of two ounces, payable to order, drawn by one postmaster
on another in any part of the United States, charging some small fee to
cover the cost of transporting gold to maintain this system of money
orders. This would be necessary to accommodate the poorer classes with
a safe and convenient method of remittance, and all classes with the
means of paying small bills at a distance, such as newspaper subscrip­
tions and the like. But all the larger operations in exchange should -b£
left to bankers— the Government drawing only to collect its balances and
suit its own convenience. Let the Government provide the currency, and
bank and bankers attend to legitimate banking and the general business
of dealing in exchange.
The circulating notes, without exception, should be drawn to order, that
they may be endorsed from hand to hand when required, and, like the
notes of the Bank of England, they should never be reissued. These
provisions are for security against counterfeiting. Two ounces would be
a sufficient magnitude of value to induce careful inspection, and place the
notes in the hands of traders and bankers who have more or less skill as
well as experience in the examination of currency notes; and their con­
stant renewal at the office of issue would place them under the frequent
observation of the issuers and of the experts of the office. Between the
retailer and the consumer, as it is now in England, there should be no
circulating medium but coin.




424

The Monetary Unit and Financial Economy.

[December,

The rapid progress in the arts, it is apparent to everybody, is not con­
fined to honest purposes, and the art of counterfeiting circulating notes
is quite as forward as any other.
I have seen bank notes, spurious be­
yond question, and struck from a counterfeit plate, that, although accus­
tomed to caTeful scrutiny of bank notes, I could not distinguish from the
genuine,.nor could any one but the engraver of the genuine plate, with­
out whose aid the bank would never have known which note to repudiate
and which to pay. An almost boundless field of operation for counter­
feiters is now opened in the immense issue o f Treasury demand notes;
and the recent act provides an issue o f small denominations to circulate
among the poor and ignorant, and generally between retailer and con­
sumer, where no paper currency should ever be employed. There is no
point of redemption— no place where the notes are necessarily subject to
the scrutiny of an expert, and the signatures are engraved, not written.
Under these circumstances, can any one doubt that counterfeits will be
abundant, and pass in the interior, if not in the large cities, as well as
the genuine ? It appears to me there is great danger that the Govern­
ment, by and by, will not know its own issue; that our currency will be
disorganized, and the whole financial system of the country demoralized
and broken down by the unfortunate policy o f relying upon and expand­
ing paper currency issues for the conduct o f the war.
If it be objected that coin can also be counterfeited, I reply that it is
difficult to put together the conditions that will prevent the detection of
a piece o f counterfeit money.
There are, I think, only two metals that
will resist acids and combine to produce the specific gravity of gold, i. e.,
platina and silver, the former being heaver and the latter lighter than
gold. But platina is very difficult to work in coining. “ It is so impos­
sible that no considerable portion of it can be melted by the strongest
heats of our furnaces,” and it is the most costly metal, next to gold, that
could be mingled in coin, being five or six times as valuable as silver and
nearly half as valuable as gold. The amalgam of platina and silver can
not, I think, be colored to resemble g old ; it could be used for loading
the coin, that is, the amalgam could be plated with gold ; but the ring, in
any event, would be very different from that of a piece of gold coin, and
as the production would be troublesome and costly, I think the danger of
counterfeiting with that admixture is not very imminent, although the
* most so, undoubtedly, o f any, because of its quality of resisting acids
and the possibly exact similitude in specific gravity. As to any other ad­
mixture, the general use o f a specie currency would soon furnish every
trade with experience and skill enough to detect the spurious coin. There
is a well known instrument— a small balance— so contrived as to furnish
the three measures necessary to determine the specific gravity of every
piece of coin with much accuracy, namely, the weight, the circumference,
and the thickness; so that with the application of acids also, there are
more means of detecting false coin than false notes, and such as any proper
degree of scrutiny would render effectual.
The charge of the currency, including the mint, should be given to a
board of currency, with a bureau entirely separate from the Treasury,
with offices of issue and redemption in most or all o f the chief cities,
and these should be loan offices also, where public loans may be negotiated
and the money collected, and where the principal and interest would be
paid. The currency notes should be paid only at the office where issued,




1863 .]

The Monetary Unit and Financial Economy.

425

and where the necessary proportion of coin would be kept in reserve;
otherwise their circulation, I think, could not easily be inaintainsd, if at
all, especially at the W est; because New York, being the creditor city,
the notes would command a premium at the West, and rush to the New
York office continually for redemption. The gold, it seems to me, would
be in one part of the country and the notes in another, or the Govern­
ment would be put to unnecessary trouble and cost in transporting gold
to provide for this tendency or condition o f the exchanges.
But the
chief advantage of the separation from the Treasury, would be the division
o f labor and o f risk. The business of attending to the details of the cur­
rency, in addition to managing the great fiscal concerns of the nation, is
too much for one man ; and if the Secretary o f the Treasury should hap­
pen to be a rebel, or a thief, (an occurrence that has befallen us already,)
immense disaster would be likely to result from his command o f the treas­
ure and entire financial resources o f the Government. I would have him
deal with the bureau of currency as with a national bank, and restricted
to the command of his own balances provided according to law. To
have the bullion reserves all massed in one deposit at a central office,
would be too great a temptation to disorder, especially since rebellion
has weakened the bonds o f loyalty in the nation, and given us one un­
principled Secretary of the Treasury as an example which other bad men
might follow.
In conclusion, I have to say that, although objecting to its financial pol­
icy, I am not an opponent o'f the existing administration. On the con­
trary, I desire to do everything in my power to promote the success of
the Government, especially in the prosecution of the present righteous
war— the result o f a rebellion as 'causeless as it is wicked. Nor do I en­
tertain any doubt of the purity o f intention or patriotism o f the present
Secretary of the National Treasury. I only wish that his political econ­
omy may be as sound and intelligent as his politics, I believe that the
plan herein proposed would tend effectually to check the unnatural and
unnecessary increase o f the public debt, which, in a false price, created
by a false measure, is rolling up frightfully in obligations to be paid in
real value; an unequal and improper charge upon the industry of the
country, for the benefit of capitalists and the makers of spurious curren­
cy. And, finally, I believe that this plan, faithfully executed would re­
store to the nation, through its constituted authorities, the normal power
and command, which it does not now possess, o f its industry and capital
iu war or peace for all future time.
von. x l ix .— no . vi.
28




426

Navigable Communication Betwien Lake

[December,

%

N AVIG ABLE COMMUNICATION B E TW E E N LAKE HURON, MICHIGAN, AND THE
ST. LAW REN CE.
A committee appointed by the Montreal Board of Trade to examine and
report the most eligible route to the ocean for the productions of the great
Western country has lately made a report, in which they recommend that
route which was surveyed in lS S e - ? by W alter S h a n l y , Civil Engineer,
and in 1858-9 by T. S. C larke , Civil Engineer, namely, from the mouths
of the French River, on the Georgian Bay, by way of Lake Nippisingue
and the Mattawan and Ottawa Rivers to Montreal.
W e give below copious extracts from this report, as this question is one
of the very greatest interest. Yet, in our opinion, the Committee have
failed to make out a clear case. Their chief endeavor would seem to be to
show that the route proposed will be (1) shorter, and therefore (2) cheaper,
and take (3) less time than any other. But we will let the Committee
speak for themselves in regard to the advantages they expect trade will se­
cure by this new avenue. They say :
The leading advantages to be secured by such a line of interior navigation as it is
proposed to open, are to be classed under the following heads :
1st. Time Saved.— Because by this route grain could be taken from all ports on
Lake Michigan and delivered to sea going vessels in Montreal two days sooner than
by the Welland route, or than by any other route that can be constructed ; and in
fully eight days less than is required to lay down in the harbor of New York a cargo
loaded in Chicago or Milwaukee. The better condition for final transfer to ocean
vessels in which the grain will come to hand after the shorter as compared with the
longer inland voyage is a point that will be conceded by all shippers, and is one of
such moment that it should be prominently kept in view in contrasting the merits of
the proposed route with the existing and more circuitous one between Lake Michigan
and tide-water.
2d. Expense saved.— In the item of freight charges alone, the Montreal or Quebec
merchant purchasing grain in Chicago or Milwaukee, can effect an average saving of
fully four cents, after allowing a liberal estimate for tolls, on each bushel as compared
with what it now costs him to bring it round by way of the Welland Canal; while
that which now goes from the same points to New York, by way of Lake Erie and
the Hudson, at a cost, taking the average of the last eight years, of twenty'seven
cents per bushel, can be delivered at the ship’s side in our harbor for fifteen cents,
or in Quebec for eighteen cents, per bushel,and, as already observed, in superior ship­
ping order, not only on account of the shorter time it has been afloat, but also owing
to the more favorable atmospheric conditions to which it has been subjected, in its
passage through the cooling waters of the Ottawa.
As an index to what the saving in freight would amount to, even now, at the above
differences in rates, we subjoin the following statement of grain, and flour reduced to
grain, forwarded last year from Chicago, and received, by water only, at Montreal in
1862, and at New York in 1861.
Forwarded from Chicago by Lake and Railroad .......................buBh.
Total receipts at Montreal by Canal only..............................................
Total receipts at New York from Canals only......................................

66,477,104
15,227,878
55,905,344

This all sounds very plausible ; but if we turn to the figures given they
do not, in our opinion, justify such favorable conclusions. For instance,
the Committee say :
The relative distances between the furthest west Lake port, Chicago, and our sea­
port of Montreal, by the existing (Welland Canal) route, and by the proposed new
ne of Communication by the Ottawa, compare as follows : —




1863.]

Huron, Michigan, and the St. Lawrence.

427

1st. Welland Route.
Lake Navigation...................................................................................................
River
“
Canal
“

Miles.
1,145
132
71

Total distance to Montreal..............................................................................
2d. Ottawa Route.
Lake Navigation(including Nippisingue) .......................................................
River
“
...............................................................................................
Canal
“
...............................................................................................

1,348

Total distance Chicago toMontreal...............................
Difference in favor of Ottawa Route................................................................

980
380

675
347
58

And carrying our comparisons a step further, we have, from Chicago to New York,
3d. The Erie Canal Route.
Lake Navigation Chicago to Buffalo..............................................................
Canal
“
Buffalo to Troy.....................................................................
River
“
Troy to New York..............................................................

1,000
350
150

Total distance Chicago to New York.......................................................
“
“
Chicago to Montreal by the Ottawa...............................

1,500
980

Difference of distance in favor of Montreal....................................................

520

Trans-Atlantic distances also compare favorably for u s :

*

New York to Liverpool....................................................................
Montreal to Liverpool.........................................................................................

2,9S0
2,740

Difference in favor of Montreal.........................................................................
Difference in favor of Quebec............................................................................

240
400

Chicago to Liverpool by Lake Erie and New York..................................
Chicago to Liverpool by Ottawa and Gulf of St. Lawrence....................

4,480
3,720

Difference in favor of Ottawa and Gulf Route.............................................

1 60

Such is. the case made out by the Committee. But even admitting all
the figures to be correct, do they not suggest at least one awkward ques­
tion, which must be answered before we can assent to the conclusion reached.
For instance, we are told that the distance between Chicago and Liverpool,
by way of Montreal and the Welland Canal, is 4,088 miles, while by the
way of New York and the Erie Canal the distance, is 4,480 miles ; showing
a difference in favor of Montreal of 400 miles. Yet, notwithstanding this,
the Committee tell us, in the above quotations, that the total receipts of
grain, and flour reduced to grain, at Montreal, by canal, in 1862, was
15,227,878 bushels, while the receipts at New York, by canal, were
55,805,344 bushels. Thus we see that, although the Montreal route was
nearer Liverpool by 400 miles than the New York route, New York re­
ceived nearly four times as much of these Western products for shipment.
W hy this was so, the Committee did not stop to tell u s; yet, until this fact
is explained, and the reasons for it given, we do not see how the further
fact that the proposed new ruote is two or three hundred miles shorter than
the Welland Canal route, can be conclusive proof that the latter, when
completed, will command the trade. May not the same reasons why trade
now seeks Liverpool through New York, in spite of its greater distance,
rather than through Montreal, apply equally to the Ottawa avenue and
prevent it from becoming the popular route ? In this connection, there are
some facts which might help us to reach a safe conclusion, had the Com­




428

Lake Huron, Michigan, and the St. Lawrence.

[December,

mittee given them. For instance, they might have told us how much
longer or shorter time it would take an ordinary sailing vessel, leaving Mon­
treal for Liverpool, to go the first five hundred miles than it would one
leaving New York ; or what is the difference in time made between Mon­
treal and Liverpool compared with New York and Liverpool; how many
months in the year is Montreal shut out from the commercial world by ice,
and what are the difficulties and dangers o f St. Lawrence navigation at all
seasons; what railroad connections the W est has with New York, available
in winter as well as summer, giving her a way o f communicating with the
markets of the world all the year round. These, and other facts, might
have an important bearing upon the question discussed.
W e trust, however, that this project will be carried through. If it proves
to be half that is claimed for it, the Western producers will be greatly bene­
fited. Besides, Canadian facilities will only lead to greater facilities in the
States; and the West needs all the avenues it can obtain, and the shorter
and cheaper the better, through which to pour out its unbounded wealth
upon the markets of the world.
As to the capacity and probable cost o f this work, the Committee say
that they have had before them, to guide them to conclusions on these
points, the Reports of W alter S h a n l y , Civil Engineer, and of T. S. C lar k e ,
Civil Engineer ; both printed by order of the Legislative Assembly, the one
in 1858, the other in 1860.
Mr. S hanly recommends a navigation o f the size represented by locks
of 250 feet in length by 50 feet in width— capable of passing vessels draw­
ing ten feet of water.
Mr. C larke proposed locks of similar length, but considers 45 feet as
sufficient width, while he would provide for 12 feet draught of war.
The Committee add that experience in the grain-carrying trade in Cana­
da goes to show that transhipment at the foot of Lake navigation from large
steam and sailing vessels into river craft is not only not found to be an in­
convenience, but is adopted by choice as the cheapest, most ihcile, and
safest mode of delivering the grain in our harbor. Vessels loaded on the
Upper Lakes now rarely come below Kingston, there transferring their car­
goes to barges ; the largest class o f which now used in the trade measure
150 feet in length by 30 in width, draw nine feet o f water, and carry some
22,000 bushels of wheat. Increasing their length to 160 feet and their
beam to 33 feet, their draught could be lightened -to eight feet and thoir
load-capacity still preserved; and by further increase in length and beam,
within the limits of the largest sized lock proposed, their capacity could be
increased to 35,000 bushels without adding to the reduced (8 feet) draught
of water.
Mr. S h a n ly estimated the cost o f completing his scheme of navigation at
$24,000,000.
Mr. C larke , not however taking into account the enlarging of the Lachine canal, or the removal in Lake St. Louis of the obstruction to a 12
feet, or even a 10 feet, navigation, makes a very much lower estimate; re­
sorting largely to the plan of damming up the Ottawa and Matawan rivers
to avoid extensive excavations. His estimate is a little over $12,000,000.
Placing the question o f cost in its least favorable light, by assuming the
highest estimate, the Committee requested Mr. S han ly to ascertain what
the probable difference in cost between an eight feet and a ten feet naviga­
tion would be. His answer may be briefly stated thus:




1863.] .

429

Negotiable Paper.

“ Leaving the locks of the dimensions as to length, width, and depth
contemplated in his.original estimate, but providing throughout, elsewhere,
for eight feet draught only, would reduce the cost of the undertaking to
$16,000,000.
“ And if the locks were to be reduced in size to, say, 160 x 33 x 8 feet
depth, a further reduction in cost to the extent o f about $2,000,000 might
be effected, bringing the entire outlay within the limit of $14,000,000.”
The deepening of a navigation, even where most practicable, is necessari­
ly an expensive undertaking. To obtain the largest desirable carrying ca­
pacity, therefore, for river and canal craft, without recourse being had to
great draught of water, the means of giving them increased length and
width, with the increasing demands of trade, should be kept in view. The
Committee accordingly express the opinion, that the size of lock designed
by Mr. S h a n ly , 250 feet long by 50 feet wide, is that best adapted to the
“ French Kiver and Ottawa navigation,” and with a view to the future
adaptation o f the route to ten feet available depth throughout, they recom­
mend that in the construction of the locks the full depth of ten feet be also
adhered to, and so obviate the necessity for the pulling down and sacrificing
the original cost of such expensive structure, when further improvements
come to be developed.

COMMERCIAL LAW .

No. 8.

NEGOTIABLE P A P E R ; OR, NOTES OP HAND AND BILLS OF EXCHANGE.
TH E

R IG H T S

AND

D U TIE S

O F TH E

IN D O R S E R .

O nly a note or bill payable to a payee or order is, strictly speaking,
subject to indorsement. Those who write their names on the back of any
note or bill are indorsers in one sense, and are sometimes called so ; but
are not meant in the law-merchant by the word “ indorsers.”

The payee of a negotiable bill or note— whether he be also maker or
not— may indorse it, and afterwards any person, or any number o f per­
sons, may indorse it. The maker promises to pay to the payee or his
order ; and the indorsement is an order to pay the indorsee, and the ma­
ker’s promise is then to pay the note to him. But if the original promise
was to the payee or order, this “ or order,” which is the negotiable ele­
ment, passes over to the indorsee, though not written in the indorsement,
and the indorsee may indorse, and so may his indorsee, indefinitely.
Each indorser, by his indorsement, does two things: first, he orders
the antecedent parties to pay to his indorsee; and next, he engages with
his indorsee, that, if they do not pay, he will.
What effect an indorsement of a negotiable note or bill by one not
payee, before the indorsement by payee, should have, is not quite certain.
Upon the whole, however, we should hold, with some reason and author­
ity, that, where such a name appears, as it may be made to have the place
of a second indorser whenever the payee chooses to write his name over
it, it shall be held to be so intended, in the absence of evidence. Such
seems to be the well-settled law o f New Y o rk ; and the consequence of




430

Negotiable Paper.

[December,

this rule would be, that an indorsement by one not the payee gives no
security whatever to the payee, and does not make the indorser liable in
any way to the payee, without evidence that he indorsed the note with
the intention and understanding that he thus bound himself to the payee.
The reason why such indorsement gives the payee no claim against the
indorser is, that a first indorser can have none against a second, but the
second may have a claim against the first; because the first promises to
pay to the second, the second to the third, and so on. But evidence is
receivable to prove that the party put his name on the note for the pur­
pose of adding to its security by becoming responsible for it to the payee.
And then, if he indorsed the note before it was received by the payee,
the consideration of the note attaches to him, and he may be held either
as surety for consideration, or as a maker.
In Massachusetts, and some other States, this is supposed by the law
to be the intention of such an indorsement, without any evidence ; or, in
other words, such an indorser is held as a co-maker. If the indorser
wrote his name on the note after it was made, and at the request of the
payee or other holder, he is bound only as guarantor or surety ; and the
consideration of the note being exhausted, and not applying to him, he
is bound only if some new and independent consideration is shown. No
one who thus indorses a note not negotiable can be treated or considered
precisely as a second indorser, whatever be the names on the paper be­
fore his own ; but any indorser of such a note or bill may be held to be
a new maker or drawer, or a guarantor or surety, as the circumstances
of the case indicate or require ; but then either the original consideration
or a new one must attach to him to affect him with a legal obligation;
because it is only as to an indorser exactly so called, that the rule re­
quiring consideration is suspended.
If the words “ to order,” or “ to bearer,” are omitted accidentally, and
by mistake, it seems that they may be afterwards inserted without injury
to the bill or note; and whether a bill or note is negotiable or not, is
held to be a question of law.
By the law-merchant, bills and notes which are payable to order can
be effectually and fully transferred only by indorsement. This indorse­
ment may be in blank or in fu ll. The writing of the name of a payee—
either the original payee or an indorsee— with nothing more, is an in­
dorsement in blank ; and a blank indorsement makes the bill or note
transferable by delivery, in like manner as if it had been originally paya­
ble to bearer. After a note has been indorsed by a payee, any person
may write his name on the note under that of the payee, and be held as
indorser— because any subsequent holder may write over the name of the
first indorser a direction to pay the note to the next signer, and this
makes the next signer an indorsee, and so gives him a right to indorse;
and he or any holder may write over his name an order to pay the hold­
er, or anybody else. If the indorsement consist not only of the name,
but of an order above the name to pay the note to some specified person,
then it is an indorsement in full, and the note can be paid to no one else;
nor can the property in it be fully transferred, except by the indorsement
o f that indorsee ; and he may again indorse it in blank or in full. If the
indorsement is, Pay to A. B. only, or in equivalent words, A. B. is in­
dorsee, but cannot indorse it over.
Any holder for value of a bill or note indorsed in blank, whether he




1863.]

Negotiable Paper.

431

be the first indorsee or one to whom it has come through [many hands,
may write over any name indorsed an order to pay the contents to him­
self; and this makes it a special indorsement, or an indorsement in full.
This is often done for security; that is, to guard against the loss of the
note by accident or theft. For the rule of law is, that negotiable paper,
transferable by delivery, (whether payable to bearer or indorsed in blank)
is, like money, the property o f whoever receives it in good faith. The
same rule has been extended in England to exchequer bilis ; to public
bonds payable to bearer ; and to East India bonds ; and we think it would
extend here to our railroad and other corporation bonds, and,perhaps, to
all such instruments as are payable to bearer, whether sealed or not, and
whatever they may be called. If one has such an instrument, and it is
stolen, and the thief passes it for consideration to a bona fide holder, this
holder acquires a legal right to it, because the property and possession
go together. But if the bill or note be specially indorsed, no person can
acquire any property in it, except by the indorsement o f the special in­
dorsee.
At one time no one could acquire property in negotiable paper, if it
were shown that he received it from one who had no right to sell it, and
that he did not take due care to ascertain what right the seller had. That
is, if a holder lost his note, and a thief or finder passed it off to a bona
fide holder, the property' did not pass, if the circumstances were such as
to show negligence on the part o f the purchaser, or a want of due inquiry.
But this question o f negligence seems now to be at an end, and nothing
less than fraud defeats the title of the purchaser. In New York, how­
ever, the courts show some disposition to return to the old rule, which
makes negligence o f the holder defeat his title, as well as fraud ; and
there are strong reasons for this.
It may be well to remark here, that the finder of negotiable paper, as
of all other property, ought to make reasonable endeavors to discover the
owner, and is entitled to use the thing found as his own only when he
has made such endeavors unsuccessfully. If lie conceals the fact o f find­
ing, and appropriates the thing to his own use, he is liable to the charge
of larceny or theft.
The written transfer of negotiable paper is called an indorsement, be­
cause it is almost always written on the back o f the n ote; but it has its
full legal effect if written on the face.
Joint payees of a bill or note, who are not partners, must all join in an
indorsement.
An indorser may always prevent his own responsibility by writing
“ without recourse,” or other equivalent words, over his indorsement; and
any bargain between the indorser and indorsee, written or oral, that the
indorser shall not be sued, is available by him against that indorsee, but
he cannot make this defence against subsequent indorsees who had no
notice of the bargain before they took the note.
Every indorsement and acceptance admits conclusively the signature of
every party who has put his name upon the bill previously in fact, and
who is also previous in order. Thus, an acceptance-admits the signature
of the drawer, but not the signature of one who actually indorses before
acceptance, because acceptance is in its nature prior to indorsement. By
this is meant,,that if an indorser— say a third indorser— is sued, he can­
not defend himself by saying that the names o f the maker and the first




432

Negotiable Paper.

[December,

and.second indorsers, or either o f them, were forged, because by indorsing
it himself he gives his indorsee a right to believe that the previous signa­
tures were genuine. And an acceptor cannot say that his drawer’s name
is forged ; but he may say that an indorsement which was on the bill
when he accepted it was forged, because an indorsement of a bill comes
properly and in order o f law after acceptance.
It'a holder strike out an indorsement by mistake, he may restore it;
if on purpose, the indorser is permanently discharged. A holder may
bring his action against any prior indorser, and fill any blank indorsement
specially to himself, and sue accordingly; but then he invalidates the
subsequent indorsements. The reason is, that he takes from them all
the right to indorse; thus, for example, if A makes a note to B, and B,
C, D. E, and F successively indorse it in blank, and G, the holder, writes
over C’s name, “ Pay to G,” it is as if C had written this himself; and
then G only could indorse, and, o f course, D, E, and F could not, as they
were mere strangers. And a holder precludes himself from taking ad­
vantage of the title of any party whose indorsement is thus avoided. And
if he strikes out the name o f any indorser prior to that one whom he sues
or makes defendant, he cannot maintain his action against that defend­
ant ; because, by so doing, he deprived the defendant of his right to look
to the party whose name is stricken o u t; and because the defendant thus
loses security he is entitled to, the defendant is himself discharged.
One may make a note or bill payable to his own order, and indorse it
in blank; and this is now very common in our commercial cities, because
the holder of such a bill or note can transfer it by delivery, and it needs
not his indorsement to make it negotiable further. A note to the maker’s
own order, if not indorsed by him, is, strictly speaking, of no force against
him. But there seems to be some disposition in the courts to say that a
holder of such note may sue the maker as if the note were to bearer.
A transfer by delivery, without indorsement, of a bill or note payable
to bearer, or indorsed in blank, does not generally make the transferrer
responsible to the transferree for the payment of the instrument. Nor
has the transferee a right to fall back, in case of non-pavment, upon the
transferrer for the original consideration o f the transfer, if the bill were
transferred in good faith, in exchange for money or goods; for such trans­
fer would be held to be a sale of the bill or note, and the purchaser takes
it with all risk. But it seems not to be so where such a note is delivered
either in payment or by way of security for a previously existing debt.
Then, if the transferer has lost nothing by the reception o f the note by
the transferree, because if he had continued to hold the note he would
have lost it, there seems to be no reason why the transferree should lose
it W e have no doubt that such a transferrer may make himself liable,
without indorsement, by express contract; and that circumstances might
warrant and require the implication that the bill or note so transferred
remained, by the agreement and understanding of both parties, at the
risk of the transferrer. And every such transferrer warrants that the bill
or note (or bank-note is note) is not forged or fictitious, and is liable for
it if it is.
An indorsement may be made on the paper before the bill or note is
drawn ; and such indorsement, says Lord M ansfield , “ is a letter o f credit
for an indefinite sum, and it will not lie in tue indorser’s mouth to say
that the indorsements were not regular.” The same rule applies to an




1863.]

Negotiable Paper.

433

acceptance on blank paper. So an indorsement tnay be made after or
before acceptance, though strictly proper only after.
A bill or note once paid at or after maturity, ceases to be negotiable,
in reference to all who had been discharged by the payment. If issued
again, it is like a new note without their names. If a bill or note is paid
before it is due, it is valid in the hands of a subsequent bona fide indorsee.
A portion of a negotiable bill or note cannot be transferred, so as to
give the transferree a right o f action for that portion of his own name.
But if the bill or note be partly paid, it may be indorsed over for the
balance.
After a holder’s death, his executor or administrator may transfer. But
it seems that, if a note needing indorsement was indorsed by the holder,
but not delivered, although the executor may indorse and deliver the note
himself, he cannot complete the transfer by delivery alone. The husband
who acquires a right to a bill or a note given to the wife, either before or
after marriage, may indorse it.
One who may claim payment of a bill or note, and of whom payment
may also be demanded, or one who is liable to contribute for the payment
of a note, cannot sue upon it ; because the law will not permit A to sue
B, if, as soon as A recovers, B can turn round and sue A for the same
sum. If the technical rule— that the same party cannot be plaintiff and
defendant— prevents the action, as where A, B & Co. hold the note of A ,
C & Co., so that if a suit were brought A woujd be one o f the plaintiffs
and one of the defendants also, which cannot be, A , B & Co. may indorse
the note to D, who may then sue A, C & Co.
TH E R IG H T S A N D D U TIE S O F TH E A C C E P T O R .

Acceptance applies to bills, and not to notes. It is an engagement of
the person on whom the bill is drawn to pay it according to its tenor.
The usual way of entering into this agreement, or o f accepting, is by the
drawee’s writing his name across the face o f the bill, and writing over it
the word “ accepted.” But any other word of equivalent meaning may
be used, and it may be written elsewhere, and it need not be signed, or
the drawee’s name alone on the bill may be enough. But if accepted
irregularly, or in an unusual wav, the question whether it were accepted
would generally go to a jury under the direction of the court. A written
promise to accept a future bill, if it distinctly define and describe that
very bill, has been held in this country as the equivalent of an acceptance,
if the bill was taken on the credit o f such promise. In New York this
is provided by statute. In England and in this country, generally, an
acceptance may be by parol.
And it is said that a promise, whether
written or verbal to p ig an existing bill, is an acceptance. But the lan­
guage, whether oral or written, although no form be prescribed for it,
must not be ambiguous; thus where a drawee, on presentment of a bill
for acceptance, said, “ The bill shall have attention,” it was held that this
was not an acceptance, because the words might mean something else as
well as that the drawee would pay it. They might mean, for example,
that he would look over his accounts and see whether he had the funds
to pay it. The words must distinctly import acceptance, or an agreement
to do what acceptance would bind the party to d o ; and mere detention
of the bill is not acceptance.




484

Negotiable Paper.

[December,

An acceptance acknowledges the signature and capacity of the drawer ;
and the capacity at that time o f the payee to indorse, which is also ad­
mitted by the maker of a promissory n ote; and this cannot be afterwards
denied by the acceptor, although the payee be an infant, a married woman,
or a bankrupt. But the acceptance does not admit the validity of an ex­
isting endorsement; nor, if it be by an agent, his authority; if, however,
the acceptor knew that the indorsement was forged or made without au­
thority, he cannot use the fact in his defence.
But if the bill is drawn
in a fictitious name, the acceptor is said to be bound to pay on an indorse­
ment by the same hand. In general, any party who gives credit and cir­
culation to negotiable paper admits so far as he is concerned, and cannot
afterwards deny, all properly antecedent names.
A banker is liable to his customer without acceptance, if he refuses to
pay checks drawn against funds in his hands. So it seems that a banker,
at whose house a customer, accepting a bill, makes it payable, is liable to
an action at the suit of the customer, if he refuse to pay it, having at the
time of presentment sufficient funds, and having had those funds a reason­
able time, so that his clerks and servants might know it. And the banker
has authority from the bill itself to apply to its payment the funds of the
acceptor.
There cannot be two or more acceptors o f the same bill not jointly re­
sponsible, as partners are. If accepted by a part only of those jointly
responsible, or joint drawees, it may be treated by the holder as dishon­
ored ; but if not so treated, the parties accepting will be bound.
An acceptance may be made after maturity, and will always be treated
as an acceptance to pay on demand.
The acceptance may be cancelled by the holder; and if this cancelling
be voluntary and intended, it is complete and effectual; but if made by
mistake, by him or other parties, and this mistake can be shown, the ac­
ceptor is not discharged. And if the cancelling be by a third party, it
is for the jury to say whether the holder authorized or assented to it.
If a qualified acceptance be offered, the holder may receive or refuse
it.
If he refuses it, he may treat the bill as dishonored; if he receives
it, he should notify antecedent parties, and obtain their consent ; without
which they are not liable. But if he protests the bill as dishonored, for
this reason, he cannot hold the acceptor upon his qualified acceptance.
A bill drawn on one incompetent to contract, as from infancy, cover­
ture, or lunacy, may be treated by the holder as dishonored.
A bill can be accepted only by the drawee— in person or by his author­
ized agent— or by some one who accepts fo r honor.
A C CE PTA N CE, OR PA YM E N T, FO R HONOR.

If a bill be protested for non-acceptance or for non-payment, any per­
son may accept it, or pay it for the honor either of the drawer or of any
indorser. This he usually does by going with the bill before the notarypublic who protested the bill, and there declaring that he accepts or pays
the bill fo r honor ; and he should designate for whose honor he accepts
or pays it, at the time, before the notary public, and it should be noted
by him.
A general acceptance supra protest, (which is the phrase used both by
merchants and in law, meaning upon or after protest,) for honor, is taken




1863.]

Our Foreign Trade Passing into Foreign Bottoms.

435

to be for honor of the drawer. The drawee himself, refusing to accept it
generally, may thus accept for the honor o f the drawer or an indorser.
And after a bill is accepted for honor of one party, it may be accepted
by another person for honor o f another party.
And an acceptance for
honor may be made at the intervention and request o f the drawee.
N o holder is obliged to receive an acceptance for honor ; he may re­
fuse it wholly. If he receive it, he should, at the maturity o f the bill,
present it for payment to the drawee, who may have been supplied with
funds in the mean time.
If not paid, the bill should be protested for
non-payment, and then presented for payment to the acceptor for honor.
The undertaking o f the acceptor for honor is collateral only ; being an
engagement to pay if the drawee does not.
It can only be made for
some party who will certainly be liable if the bill be not paid ; because
by an acceptance, or by a payment, properly made, for honor, supra pro­
test, such acceptor or payer acquires an absolute claim against the party
for whom he accepts, or pays, and against all parties to the bill antece­
dent to him, for all his lawful costs, payments, and damages, by reason of
such acceptance or payment. This is an entire exception to the rule that
no person can make himself the creditor of another without the request
or consent of that oth er; but it is an exception established by the lawmerchant.
•

OUR FOREIGN TRADE PASSING INTO FOREIGN BOTTOMS.
I n a war like the present, of course every interest must suffer, and yet
it seems strange that two or three privateers should have been able to
almost destroy our shipping interests.
One would suppose that with a
navy, such as that of which we now boast, some protection might have
been extended to our foreign trade.
Or, if the Navy Department now
has no vessels fast enough for the purpose, certainly there is sufficient
talent in the country to build them. There was a time, and it was not a
very long while ago either, when Young America contended with the
“ mistress of the seas ” for the supremacy, with every promise o f wrest­
ing the sceptre from her.
Our ocean steamers were the wonder of the
world. In speed, size, and equipment, they left their British competitors
far behind. Is there any reason why we cannot do again what we have
once so well done ?'
,
Last month we published a list of the vessels captured by these priva­
teers, but that list gives a very imperfect idea of the actual loss we are
sustaining.
It may surprise many to know that the forced sales to for­
eigners of vessels built and owned here has been going on steadily for a
long time past, and now is proceeding with a celerity that bids fair to
change the ownership of the finest bottoms in the United States mercan­
tile marine, and to leave nothing under the American flag worth captur­
ing.
The following list o f American ships lately sold by Mr. G eorge
C roshaw & Co., of London, will show what is being done in this respect
at the present time :




436

Our Foreign Trade Passing into Foreign Bottoms. [December,.

Name of vessel.
Holy rood................................................
Samuel Lawrence. ...........................
Elizabeth W atts..................................
Arundle.................................................
A. Dunbar..............................................
John Porter..........................................
Huntress.................................................
Kate S w etland....................................
Sabin e...................................................
Ina R u sse ll..........................................
Ocean R o m p ........................................
Louisa......................................................
Jacob A. Westervelt...........................
Ocean Telegraph..................................
Otseonthe................................................
Neptune’s Favorite...............................
Coronet .................................................
Devonshire.............................................
Flying Childers....................................
Ivanhoe...................................................
Sierra Nevada......................................
Mary E. Balch......................................
Walter Lord, (damaged)....................
Spitfire, (subject to owners reclassing
Joseph Peabody....................................
Morning L ig h t......................................
Sunda (late Gauntlett) .......................
Daphne.....................................................
Virginian.................................................
Ganges......................................................
Evangeline.............................................
Napoleon.................................................
Hollander................................................
Comet.......................................................
Isabella...................................................
Punjab.................. .. ...............................
Aspasia....................................................
John Haven..........................................
Simoda.....................................................
Morning Star........................................
R ach el...................................................
Cherubim..................... .........................
Barnabas W e b b ..................................
Lepanto...................................................
Crimea.....................................................

Tonnage.
1,04 6
1,036
224
1,092
199
997
677
627
694
1,184
862
816
1,418
1,495
1,023
1,346
1,367
674
1,125
868
1,750
1,199
1,079
1,520
1,198
1,713
1,854
1,049
399
1,258
488
649
498
1,836
1,100
780
632
1,038
646
1,105
818
1,798
1,299
890
900

"Where built.
Thoma9ton,
Medford,
Thomaston,
Kenuebunk,
St. Mary’s,
Newburyport,
Bath,
Thomaston,
Portsmouth,
Kennebunk,
Bath,
East Boston,
New York,
Medford,
Bath,
Chelsea,
Belfast,
Connecticut,
East Boston,
Eastport,
Portsmouth,
Trescott, Me.,
Richmond,
Frankfort,
South Bot-ton,
Portsmouth,
Richmond,
East Boston,
Baltimore,
Boston,
Scituate, Mass.,
Medford,
Newburyport,
New York,
Boston,
Medford,
Mystic,
Portsmouth,
Licolnville,
Medford,
Calais, Me.,
Baltimore,
Thomaston,
East Boston,
Kennebunk,

When.
1857
1851
1847
1861
1849
1859
1860
1852
1851
1854
1848
1860
1849
1854
1852
1S54
1854
1856
1852
1857
1854
18i5
1855
1853
1856
1853
1853
1859
1848
1854
1858
1851
1849
1851
1850
1860
1856
1849
1856
1858
1856
1856
1856
1860
1855

Price.
£8,000
5,800
740
11,000
965
9,000
4 400
2.000
3.850
5.575
3.500
8,700
7,800
7,060
7,250
8,000
6,000
4,060
5,050
4,600
10,750
6,000
3,450
9,000
7,650
9,000
8,000
9,175
1,750
8,000
3,150
3,225
2,100
8,100
12,500
8,250
2,250
4,800
3.700
6,500
2,550
12,500
7,550
7,760
6,125

Nearly all these are well known first-class vessels. Hitherto their flag
has been an United States advertisement in every sea under the heavens,
but henceforth, they are destined to be known only as English, or other
foreign property.
W e are indebted to the Journal o f Commerce for the following table,
showing to what extent the carrying business had changed up to June
30th. The figures are for the same quarter in each of the last four years■:
F O R E IG N

TR AD E

O F THE P O R T

OF

NEW

Y O R K , F O R TH E

Q U A R TE R E N D IN G

JU N E 3 0 t h .
In A m erican vessels. In Foreign vessels.

I860. Value o f goods imported................
“
“
exported................

$35,197,101
27,401,225

$18,142,622
12 776,229

Total trade..........................................

$62,598,326

$30,918,051




1863.]

Our Foreign Trade Passing into Foreign, Bottoms.

437

In A m erican vessels. In F oreign vessels.

1861. Value o f goods imported. . . . ___
(t
U
exported.........___

$23,534,808
24,305,568

$18,422,182
10,630,751

___

$47,900,376

$29,052,933

1862. Value of goods im ported.. . . ___
it
U
exported.........___

$16,314,354
17,971,262

$ 2 3 /8 2 ,0 7 0
30,811,074

___

$34,285,616

$53,993,144

1863. Value of goods im ported.. . . ___
it
it
exported. . . . ,___

$12,731,819
10,672,011

$30,139,557
35,750,296

Total trade.........

Total trade.........

Total trade.........

$65,8s9,853

W e think that no American can study these figures without a painful
sense of humiliation. In 1860 the quarter’s trade was 862,000,000 under
our flag, and 130,000,000 under the flags o f all foreign nations. This
has rapidly changed as the war continued, until, for the last quarter re­
turned, we find $65,000,000 under foreign flags, and only $23,000,000
under our own flag. Thus shippers all over the world have been deterred
by fear of capture from the employment, as carriers, of American ships.
It may be that our Navy Department has done all it could to protect our
commerce; but a contrary impression prevails among those who are most
interested.
It is not therefore surprising that the underwriters and merchants of
New York should have made the following strong appeal to the Navy
Department. The reply does not, however, seem to us to be very satis­
factory. The object sought by the merchants’ letter in question was, we
suppose, not to know' what had been done, but what additional could and
would be done— not to be informed that the “ navy is enlarging,” but to
learn whether or no the ship-building talent of our country was to be
taxed to its utmost until vessels could be built capable of catching these
privateers. W e have vessels in abundance, but none fast enough. It is
to little purpose that thirty are sent after one rebel cruiser, if that one
can outsail them all. The following is the letter and the reply :
N ew Y ork, October 28tk, 1863.
Hon. G ideon W elles , Secretary o f the Navy, Washington, 1). C . :
S ir :— The continued depredations of the rebel cruisers on the mercantile
marine of the country, have not only destroyed a large amount o f the aotive capital of the merchants, but seriously threaten the very existence of
that valuable part of our commerce.
Apart from the loss o f so much individual wealth, and the destruction of
so valuable a source of material power and enterprise, it is humiliating to
our pride as citizens of the first naval power on the earth, that a couple of
indifferently equipped rebel cruisers should for so long a period threaten
our commerce with annihilation. It is a painful source of mortification to.
every American, at home and abroad, that the great highways o f our com­
merce have hitherto been left so unprotected by the almost total absence of
national armed vessels, as to induce rebel insolence to attack our flag almost
at the entrance of our harbors; and to actually blockade our merchantmen
at the Cape of Good Hope recently, an account of which you have here




438

.

Oar Foreign Trade Passing into Foreign Bottoms. [December,

enclosed, being a copy of letter recently received from a captain of one o f
the blockaded ships having a valuable cargo. W e are conscious that it is
no easy matter to capture a couple of cruisers on the boundless waters of the
ocean, aided and abetted, as they too often have been, at ports where inter­
national comity if.not international law have been set at defiance; and we
have witnessed with satisfaction the patriotic zeal and energy of your de­
partment, and the glorious successes of our navy in subduing the rebellion
which threatens our national union. Still, we think that the loyal merchants
and ship-owners o f the country, whose zeal and patriotic co-operation have
generally furnished the funds to sustain the Government, are entitled to have
a more energetic protection of their interest than has been hitherto extend­
ed to it. Your very arduous official duties have no doubt prevented yon
from investigating the serious inroads which the unprotected state of our
carrying trade has produced on our tonnage; and without troubling you
with the great loss which our ship-owners sustain in the almost total loss of
foreign commerce, it is only necessary to call your attention to the inclosed
table, prepared and published by one of the best informed commercial jour­
nals of the city, [The table alluded to is the one above taken from the Jour­
nal o f Commerce.— E d . M e r . M a g .], showing the loss of the carrying
trade on the imports and exports of this city alone, by which you will
perceive that, while during the quarter ending 30th June, 1860, we import­
ed and exported over $62,000,000 in American vessels and but $30,000,000
in foreign vessels, we have in the corresponding quarter of this year only
$23,000,000 by our own ships, while we have $65,000,000 by foreign ves­
sels. The intermediate periods show a most painful decadence of our ship­
ping interest and tonnage, by transfer and sale t > foreign flags; which at
this time of considerable commercial activity does not so much indicate a
want of enterprise in this field of occupation, as a want of confidence in
the national protection of our flag on the ocean.
The national pride of many of our patriotic ship-owners has subjected
them to heavy sacrifices in difference of insurance against capture of two to
ten per cent; while the underwriters of the country have been compelled
to make heavy sacrifices in favor of American shipping ; yet without mate­
rially affecting the result. And many of them encountering heavy losses
by captures in quarters where they had every reason to believe our com­
merce would be protected by national vessels of efficiency and power. In­
deed, the almost total absence of efficient naval force in many of the great
highways of commerce has had a damaging influence on our prospects, by
producing a great degree of temerity on the part of the rebel cruisers, and
corresponding misgivings on the part of underwriters and others in interest,
as to whether Government protection would be afforded to our ships laden
with valuable cargoes. The want of adequate armed vessels on prominent
naval stations for protection of our ships has become so notorious, that un­
derwriters have no longer speculated on the chance o f the capture of these
rebel cruisers by any o f our national ships, but calculate only the chances
of escape of our merchantraent, or the probable destruction of the piratical
craft, from reported unseaworthiness or mutiny.
These statements are made with all candor, and in no spirit of captious­
ness ; but with a desire to concede that the embarrassment o f the depart­
ment, which it may not be prudent or practicable to explain to the public,
may fully justify the unfortunate position which want of naval protection
has placed our commerce in. Yet it is respectfully urged that you will give




1863.]

Our Foreign Trade Passing into Foreign Bottoms.

439

this subject the benefit of the same energy and ability which has so credit­
ably marked the administration of your department in all other channels of
your official duties. No one can better comprehend, than one in your po­
sition, the value o f successful commerce at this time of great national ex­
penditure ; and a paralysis of so important an interest cannot be contem­
plated without horror at this period of our national struggle.
W e beg leave, also, to inclose an extract from the Commercial Advertiser
of the 26th inst., and request your attention to the paragraph marked.
W e are sir, very respectfully,
Your obedient servants,
Richard Lathers, President Great West­
ern Ins. Co.
J. B. Tappen, President Neptune Ins. Co.
F. S. Lathrop, President Union Mutual
Ins. Co.
M. H. Grinnel, President Sun Ins. Co.
Robert L . Taylor, merchant ship owner.
C. H. Marshall, merchant ship owner.
A . A . Low & Brother, merchant ship
owners.
Grinnell, Minturn <Sr Co., merchant ship
owners.
Wilson G. Hunt, merchant.
Charles Newcomb, Vice-President Mer­
cantile Mutual Ins. Co.
Brown, Brothers <fc Co., bankers.
W . T. Frost, merchant ship owner.
Bogart
Kneeland, merchants.
Duncan, Sherman <fe Co., bankers.
Bucklin <fc Crane, meAhant ship owners.

E. E. Morgan, merchant ship owner.
Wm. Whitlock, Jr., merchant ship owner.
Geo. Opdyke, Mayor of New York city.
August Belmont & Co., bankers.
James G. King’s Sons, bankers.
Archibald Gracie, merchant.
Howland & Frothingham, merchant ship
owners.
Williams & Guion, merchant ship owners.
J. H. Earl, Pres’t N. Y . Mutual Ins. Co.
Isaac Sherman, merchant ship owner.
W. A. Sale <St Co., merchant ship owners.
Thomas Dunham, merchant ship owner.
Spofford, Tileston & Co , merchant ship
owners.
Babcock, Brothers & Co., bankers.
J. Pierpont, Morgan & Co., merchant ship
owners.
E. D. Morgan <Ss Co., merchants.

REPLY.
N a v y D epartment , W

a sh in g to n ,

November 14, 1863.

G entlemen : The department duly received your communication of the
28th ultimo, in reference to the depredations committed upon American
commerce by the Alabama and other rebel cruisers. The pursuit and cap­
ture of these vessels is a matter that the department has constantly in view,
and swift steamers have been constantly in search of them, and, at times,
very close to them. They are under orders to follow them wherever they
may go. The only vessel that had the impudence to attack our flag at the
entrance of our harbors, the Tacony, was promptly pursued and her career
was soon terminated. . The department had about thirty vessels after her.
I thank you for your expression that energy and ability have creditably
marked the administration of this department in all other channels o f offi­
cial duties. A rigid blockade of the coast has been demanded, and its ac­
complishment has required all the available force that the department could
bring to bear. To do this, it could not well dispatch a larger force than it
has in search of piratical rovers. It will continue to give this subject its
attention, and hopes, as the avenues to the insurrectionary region are be­
coming closed, and the navy is enlarging, to be able to have a larger force
to pursue the pirates, and secure the safety of our commerce abroad.
Very respectfully,
(Signed)
G ideon W elles , Secretary o f the Navy.
To R ichard L athers , Esq., and others.




440

[December,

Comm'rr.ial Chronicle and Review.

COMMERCIAL CHRONICLE AND REVIEAV.
DEARN ESS

OF

M ON EY— OAUSE8

OF

PRESSU RE— G O V E R N M E N T

LOAN— B A N K

R ESO U RCES— IM P R O V E ­

M E N T O F B U S IN E S S — S U B S C R IP T IO N S T O F I V E - T W E N T I E S — B A N K R E S O L U T IO N — D E M A N D F O R G R E E N ­
B A C K S— C A L L IN G
A

P R E M IU M — N E W

O F L O A N — L E G A L T E N D E R S E Q U A L lZ r D — C A L L S F O R L O A N — L E G A L T E N D K R 8 A T
8 U P P L IE 8 O F C U R R E N C Y — STO C K

T R A N S A C T IO N S — S M A L L

L I G A T I O N S — I M P O R T S — H I G H E R C O ST O F G O O D S — D U T I E S — E X P O R T S — D E C L I N E

COM M ENCEM ENT
IN

OB­

B R EA D STU FF8—

E X C H A N G E — O P T IO N S — S P E C U L A T IV E P U R C H A S E R S — R A T E S O F B IL L S .

T he financial community has been visited during the month with a se­
vere money pressure, which took by surprise many who supposed that
the markets were beyond the reach of a high rate of interest while paper
flowed from the three sources o f one hundred and twenty new national
banks, one thousand old institutions, and the large operations of the fed­
eral treasury. The decisions in the courts, in relation to the constitu­
tionality of the legal tender, seemed to have removed all restraint from
the issue, and there was apparently no reason why, at least, the current
demands of business should not be freely supplied with the means o f cir­
culation. Nevertheless, a sudden combination of events seems to have
produced one of the most severe pressures that the country has, perhaps,
ever before encountered, and money has commanded very high rates.
The immediate causes of this pressure originated in the loan effected by
the treasury department from the associated banks, September 5th. At
that time, the Banks o f New York held, per their reports, about
$25,000,000 o f legal tender notes. They also held about $35,000,000 of
interest-in-gold five per cent certificates of deposits, payable at the treas­
ury in tenders, on ten days notice. They also held some $60,000,000 of
six per cent one-year certificates, fully due, and payable in legal tenders
up to December 1st. The five per cent deposits were to draw interest in
paper after November 1st, when they would be only a five per cent in­
vestment. Thus the banks held, apparently, $160,000,000 o f paper that
was available for an emergency. A t the same time, the current o f pay­
ments was toward the city, and the investments in United States fivetwenties had nearly ceased ; and, in consequence of that cessation, the
Secretary of the Treasury desired to borrow $50,000,000 of legal tenders
to pay off the troops’ arrears, due September 1st. The terms of that loan
were given in full in the October number. The banks were to pay up
the whole in legal tenders during September and October, the loan to
draw six per cent from September 1st until repaid in five per cent legal
tender notes, which, it was said, would be ready about November 1st.
There seemed to be no particular reason why the banks should not make
the loan, but, nevertheless, there was a risk, and, on the occasion of mak­
ing it, a resolution was passed that the city banks should equalize the
legal tender notes every morning, with a view to prompt settlement o f
balances at the Clearing-house. This was to provide against the possible
expansion of some institutions entangled with large stock loans. Under
this arrangement, some $17,500,000 on the loan was paid up, and the
notes were, by the Government, sent to the army. At this juncture, there
sprang up, prompted by the abundance of money growing out o f a large
fall business, a demand for the five-twenty stock, bearing six per cent in




Commercial Chronicle and Review.

1863]

441

gold. This demand reached about $60,000,000 in October, and over
$30,000,000 in the last week. Their checks for this large amount, run­
ning against deposits in banks, could not be met in greenbacks. It was
equivalent to a sharp run upon the banks holding but a moderate amount
of legal tenders. They were, however, enabled to apply their five per
cent deposits to the payments, as the Assistant Treasurer waived the re­
quired ten days’ notice, and some $17,000,000 were thus turned over.
For the treasury, it was the same as converting so much five per cent
certificates, payable in paper, into an equal amount of six per cent stock,
payable in gold. It gave no ready money to the department, but forced
upon the banks a severe contraction o f stock loans, and compelled them
also to put in force the resolution of September 5th, in relation to equal­
ization of legal tenders, because the banks controlled by those who were
interested in stock-holding were opposed to contraction, but which would
become absolutely necessary if forced to makegood balances to the Clear­
ing-house in legal tenders. This was done on the 7th o f November. The
treasury was now again embarrassed, because the changing o f five per
cent certificates for six per cent stock gave it no money, and its outlay
‘was large. The troops were again to be paid, hence, on the 9th, a call
was made for ten per cent, or $5,000,000, of the loan. This was again
paid in five per cent certificates, and on the 11th the call was repeated,
and the ten days’ notice on the certificates insisted upon, which compelled
the banks to pay up in legal tenders. This they were now enabled to do
because the high rates of money had drawn notes from the interior, and
the disbursements of the treasury had put more in circulation. The in­
stalment of the 11th, however, left $16,000,000 still due the treasury on
the loan, and the banks, under the equalizing process, were compelled still
to contract. Money remained, therefore, very dear, and the subscriptions
to the loan dwindled to a small figure. Indeed, during the most intense
pressure, the five-twenties sold at one-quarter discount at the board. It
seems reasonable, however, that when the banks receive the $50,000,000
five per cent legal tenders due them from the department, and which
should have been ready November 1st, that ease will again be restored.
This seems to be very desirable, in order to enable the department to
meet the large amount of six per cent certificates that fall due. The cir­
culating notes due the new national banks are also nearly ready.
Under the money pressure, stocks fell from 4 to 20 per cent, and Uni­
ted States securities stood as follows:
PRICES UNITED STATES PAPER.

January S ,..
<<
10 .. .
<(
1 7 ,..
“
24, .
U
31,. .
February 7 ,.
“
1 4 ,..
a
2 1 ,. .
“
2 8 ,..
March
7 ,..
«
1 4 ,..
««
2 1 ,. .
M 28,. .

,— 6’s,188i.— ,
7 3-10,
Reg. Coup. 5’s, 1874. 3 years.
884
1024
964
98
90
98
103
974
101
884
914
91f
95
90
102
96
92J
86
1014
94
102
92
934
854
1024
94
96
874
1034
964
97f
914
1024
97
1054
1004
944
99f
1004
105
98
1044
1044
. 1064
96
10 44
107
103f
964
1064
10 4 4
105

V O L. I L I X .— NO. V I.




29

1 yearcertif.
Old.
New.
964
97
95
96
94
94
96
95
984
984
100

ioe
100

August
demand
/' Gold.
notes.
344 a 344 29
374 a 38
35
49 a 464 48
47 a 484 444
66 a 604 63
# 1 4 a 674 55
534 a 534 51
534 a 64
62
71 a 714 71
524 a 53
53
544 a 644 53
544 a 644 . ,
41 a 414 . .

442

Commercial Chronicle and Review.

[December,

7 8-10,
1 year certif.
•— 6’s, 1881.— ,
Coup. 5’s, 1874. 3 years.
Old.
New.
R»g.
1041
105
971
99
1041
1041
105
971
105
1001
...
104
96
105
105
101
...
105
991
105
96
106
102
1061
1061
971
1061
102
991
106
991
107
97
106
1011
108
108
1011
991
971
107
1081
991
1081
1011
971
1071
991
108
108
971
107
101J
104
1081
99
1011
971
107
98
104£
108f
99
106
1011
106
981
103f
108J
981
101
102
98
104
1001
97
1071
981
1041
105
1001
971
106
1044
106
98
101
99
1061
1051
1061
1001
981
106f
97
961
1041
1051
1061
101
991
1051
1061
106f
101
991
964
1051
1051
99#
97
106|
101
106
1011
991
1071
97
107
106
95
io n
991
107
107
1001
106
106
95
106
99#
105
1061
106
101
95
991
1061
106
96
1061
99#
1011
1011
1061
1061
96
106f
99#
1061
95
106J
1011
99#
107
1061
107f
108
97
1011
99#
106J
1021
1071
109
97
99#
108
98
102
110
99#
1071
102
1081
981
107 f
991
. ■.
98
108
109
107
1011
98#
1081
1061 .1 0 1 1
981
109
971
108
1061
102
98
1081
98
1011
98
108
100
1061
98

demand
Gold.
netea.
58 a 63-$- . .
46 a 521
53 a 531
1511 a 1511
150 a 150f
1521 a 1521
149 a 1491
1481 a 149
1441 a 144#
146 a 146#
148 a 1481
1421 a 1431
1461 a 146#
132# a 132#
126 a 1251
126 a 1261
128# a 127
1261 a 127
125 a 1251
1241 a 125
1241 a 124
1321 a 133
128 a 129
1331 a 1331
139# a 1391
142# a 142#
1461 a 147
1511 a
1451 a 146
1461 a 1461
147# a 147#
146# a 147
160 a 160f
143 a 1441

August

4 ,..
1 1 ,..
1 8,..
2 5 ,..
2 ...
May
9 ...
1 6,..
«
23,..
(4
3 0,..
6 ,..
June
it'
13,..
ti
2 0 ,..
11
2 7 ...
July
11,..
18,..
ii
2 5 ,..
August 1 ,..
“
8 ,..
**
1 5,..
“
22,..
2 9,..
Sept.
5 ,..
12,. .
<(
19,..
26,..
October 3 ,..
“
10,. .
17,. .
24,. .
(t
3 1 ,..
Nov.
7 ,..
tt
1 4,..
2 1 ,..
u
2 7 ,..
April
it
<(
M

The fact that a large portion o f the spring and fall trade had been done
for cash prevented the most severe distress, since, had the usual amount
of commercial obligations been outstanding during the pressure, the
most wide-spread bankruptcy would have inevitably resulted. As it was,
the pressure was little felt beyond the stock circles. Indeed, the abun­
dance of means with the merchants who had converted their goods into
currency may be said to have been a cause o f the pressure, since it
prompted the large investments in five-twenties.
The imports o f the month o f October were large, as follow s:
IMPORTS, PORT OF NEW YORK.

Specie.

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

January.....................
$101,906 $2,413,649
February......................
213,971 783,561
March.............................
123,616 1,328,806
A pril..............................
107,061 1,328,216
M a y ..............................
197,217 710,021
J u n e..................♦ . .
109,997
780,963
J u l y ..............................
182,245 683,880
A u gu st.........................
113,877 509,781
September.....................
78,231 786,864
October.........................
78,053 741,888
Total 10 months
“
1 8 6 2 ....




$8,741,227
7,372,539
11,461,672
9,493,830
7,980,281
6,328,581
9,080,210
10,004,580
11,203,535
11,885,569

$4,482,794
3,657,773
3,464,530
6,456,208
5,437,404
5,377,885
4,227,265
4,409,891
3,431,310
4,189,457

Total.
$16,739,676
12,037,846
16,370,524
17,385,315
14,324,923
12,597,426
14,173,600
15,038,129
15,499,940
16,894,967

$1,306,174 $10,067,719 $93,551,924 $49,516,967 $154,442,784
1,202,253 19,814,625 91,087,726 39,165,697 151,270,361

1803.]

Commercial Chronicle and Review.

443 -

Tbese importations were to some extent the response to the second
orders that were sent out on the revival of business in September, but they
come out at much higher cost, since the prices had risen 15 @ 20 per cent,
and the landing charges here, including duties and exhange, were very
much higher when the goods arrived than when they were ordered. The
average duty paid was as follows :
Imports for customs ..........................
Duties.............................................................
Percent.......................................................

1861.

1862.

1861

$6,156,560
1,612,617
27

8 1 1,5'71,942
4,809,419
31

$16,141,081
6,238,943
37

The premium on gold being in the neighborhood of 50 per cent, the
duties were really 55 per cent, and with the extra exchange 110 percent
average on the importations. Nevertheless, under the spur o f paper
money the demand was quite sufficient to sustain that increased cost, and
the season closed with a small stock of goods.
The exports have really declined, although the paper prices in which
they are quoted make the aggregate nominally higher.
They were as
follows:
EXPORTS, PORT OF NEW YORK.

•

Specie.

January....................
$4,624,514
February.......................
3,965,664
March............................
6,385,442
A p ril........................
1,972,834
M a y .............................
2,115,679
J u n e.............................
1,367,774
J u l y .............................
6,268,881
August..........................
2,465,361
Septem ber............
3,480,385
October.......................
6,210,156
Total 10 months
“
1 8 6 2 ...,

.-------- Foreign.---------,
Free.
Dutiable.
$73,111
43,889
213,685
74,949
101,337
49,380
77,232
90,813
55,400
145,325

$668,275
610,009
758,266
376,224
602,254
298,067
448,601
231,774
238,972
350,614

Domestio.

Total.

$14,829,398 $19,695,351
17,780,586
22,400,148
16,137,689
23,695,082
11,581,933
14,004,940
13,183,510
16,002,780
14,780,072
16,495,298
16,298,073
21,092,787
10,666,959
14,454,809
11,717,761
15,492,518
14,513,454
21,219,649

$39,056,650 $925,123 $4,582,056 $139,989,435 $184,553,264
49,650,658 2,699,821
4,263,668 120,314,139 176,828,286

The decline in prices o f breadstuffs and provisions abroad, at a time
when a speculative demand sprung up here, placed the largest staple ex­
ports above the English rates, and corn and wheat ceased to be exported.
The decline of commercial bills, added to the distrust attached to them,
by reason of the long continued decline of prices abroad, sustained gold.
Nevertheless, the demand for gold in the past two weeks has been less
than was looked for, since the market was supplied by bills taken on spec­
ulation in the summer months. These operations are a new feature in
market, and are born of the speculative character imparted to every busi­
ness by the new Government currency. In ordinary times exchange sel­
dom varies J @ \ per cent, and the importers buy what they want through
brokers, or directly from the bankers. Under the paper system, when
notes are based on gold, above and around which the paper flood surges
from hour to hour, the matter requires to be closely watched to avoid
great losses. The prudent importers possessed o f capital, when gold is
low, buy it and buy bills to prepare for the coming storm, by many not
possessed of large means, and also speculators, buy “ options” similar to
those in the stock market.
They deposit perhaps 5 per cent, say $5,000, with the banker, and
agree to take any time, within sixty days, say $100,000 of exchange at




Commercial Chronicle and Review.

444

[December

1 or 8 per cent above the market price.
Thus, if the rate is 145, they
give 146£. The banker immediately covers his bill with gold and waits
until it is called for. This is a very profitable business for him, but is ex­
pensive for the importer, since it is paying 1 per cent per month for money.
For the speculator it has been profitable in the last sixty days, as the
rate has risen in that time 25 per cent. These bills, called for by specu­
lators, are now put upon the market, and, being already covered with
gold, keep the demand for the latter limited.
The rates of exchange have been as follows:
RATES OF EXCHANGE.

London.
Jan. 3,
“ 10,
“ 17,
“ 24,
“ 31,
Feb. 7,
“ 14,
“ 21,
“ 28,
Mar. 7,
“ 14,
“ 21,
“ 28,
April 4,
“ 11,
“ 18,
“ 25,
May 2,
“
9,
“ 16,
“ 23,
“ 30,
June 6,
“ 13,
“ 20,
June27,
J u ly ll,
“ 18,
“ 25,
Aug. 1,
“
8,

15,
“ 22,
“ 29,
Sept. 5,
“ 12,
“ 19,

“ 26,
Oct. 3,
“ 10,
“ 17,
“ 24,
“ 31,
Nov. 7,
“ 14,
“ 21,
“ 27,

Paris.

146 a 1474 3 .8 5
149 a 152 3 .7 2 4
160 a 162 3 .5 2 4
1 6 2 , a 163 3 .5 0
171 a 177 3 .3 2
169 a 173 3 .3 0
170 a 171 8 .3 2
171 a 1794 2 .2 0
185 a 188 3 .1 0
167 a 169 3.374
168 a 171 3 .3 5
1694 a 1714 3 .3 7 4
157 a 161 3 .5 7
168 a 172 3 .4 0
158 a 162 3 .55
165 a 1674 3 .3 7 4
163 a 165 3 .4 7 4
163 a 165 3 .4 7 4
168 a 170 3 .4 2 4
1624 a 164 3 .5 0
161 a 163 3 .5 2
1564 a 158 3 .6 2 4
1584 a 160 3 .5 7 4
156 a 161 3 .5 5
155 a 157 8 .6 2
159 a 1604 3 .5 5
143 a 146 3 .95
138 a 139 4 .0 7
138 a 189 4 .1 0
140 a 141f 4 .0 6 4
1394 a 1404 4 .0 6
1374 a 1384 4 .1 2 4
1374 a 138J 4 .1 2 4
1354 a 1364 4 .1 0
141 a 147 4 .0 0
142 a 1444 3 .9 2 4
146 a 1474 3 .8 7 4
151 a 1524 8 .7 7 4
1544 a 1574 3 .65
1604 a 162 8 .55
1684 a 172 3 .83 4
158 a 159 3 .56 4
1584 a 1594 3 .6 9
161 a 163 3 .51 4
161 a 162 3 .6 2 4
168 a 4694 3 .3 6 4
167 a 158 3 .62 4

a 3 .8 0
a 3 .6 7 4
a 3 .4 5
a 3 .4 5
a 3 .1 6
a 3 .25
a 3 .2 7
a 3 .1 2
a 3 .0 0
a 3 .3 0
a 3 .3 0
a 3 .2 7 4
a 3 .47
a 3 .25
a 3 .45
a 3 .4 5
a 3 .5 0
a 3 .4 2
a 3 .3 2
a 3 .45
a 3 .4 5
a 8 55
a 3 .6 2 4
a 3 .4 7 4
a 3 .5 7 4
a 8 .50
a 3 .8 5
a 4 .0 2
a 4 .0 5
a 4 .0 0
a 4 .0 0
a 4 .0 8 4
a 4 .0 8 f
a 4 .1 5
a 3 .9 0
a 4 .00
a 3 .8 3
a 3.714
a 8 .5 7
a 8 .48 4
a 3 .2 7 4
a 3 .6 1 4
a 3 .52 4
a 3 464
a 8 .4 7 4
a 3 .32 4
a 3.564

Amsterdam., Frankfort.
56 a 564
66 a 68
603r a 614
61 a 614
654 a 664
65 a 654
65 a 663
67 a 684
674 a 71
64 a 64
64 a 64
633 a 634
61 a 62
623 a 634
61 a 62
624•a 624
61 a 614
614 a 624
623 a 63
614 a 62
61 a 614
59J a 604
59|■a 614
593 a 61
583■a 69
59J a 604
64 a 544
514 a 62
614 a 524
524 a 53
524 a 524
514 a 62
514 a 524
51 a 514
624 a 564
53 a 534
543 a 55
563 a 564
58 a 59
604■a 61
633 a 64
69£ a 604
69 a 60
61 a 614
604■a 614
62 a 63
69 a 604

56 a 564
573 a 584
61 a 624
613 a 62
65 a 67
65 a 654
65 a 654
68 a 684
70 a 71
65 a 66
644 a 664
634 a 644
61 a 62
623 a 64
61 a 62
624 a 63
614 a 62
614 a 624
624 a 634
61| a 624
614 a 62
60 a 604
60 a 604
60 a 614
683 a 594
60 a 6 0 f
54 a 553
50 a 523
51|•a 523
523r a 534
524 a 524
52 a 524
52 a 524
214 a 514
524 a 523
533 a 54
643 a 554
564 a 57
584 a 694
603 a 614
64 a 644
60 a 604
60 a 604
614 a 62
61 a 614
63 a 6S4
594 a 604

Hamburg.
494 a 494
504 a 514
54 a 554
54 a 544
57 a 58J
57 a 574
564 a 574
59 a 604
614 a 624
65 a 554
554 a 564
66 a 67
53 a 54
563 a 57
534 a 544
544 a 554
534 a 544
584 a 544
554 a 564
54 a 55
54 a 544
524 a 53
524 a 684
524 a 54
51 a 52
524 a 624
474 a 484
464 a 464
454 a 464
464 a 474
464 a 47
454 a 46
454 a 454
45 a 454
464 a 48
47 a 48
48 a 483
494 a 50
51 4 a 524
53 a 584
56 a 564
53 a 534
624 a 534
53 a 54
53 a 584
55 a 56
513 a 524

Berlin.
98
99
108
107
114
114
1134
1183
123
111
112
113
107
111
106
108
107
107
110
107
107
1044
105
104
103
1064
94
92
91
924
92
914
904
90
954
934
954
99
108
1064
1114
105
1054
106
1064
110
105

a
a
a
a
a
a
a
a

a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a

984
100
110
1084
117
116
1144
1194
124
113
114*
114
108
111
108
110
108
108
112
109
108
106
106
107
104
107
96
93
92
93J
924
92
914
91
964
944
97
100
104
1074
118
106
1064
108
1064
1114
1064

These rates, which in September were quite up to the gold rate under
the speculative demand, have since been depressed under the sales o f those




1863.]

Commercial Chronicle and Review.

445

speculative bills, and the shipments o f gold have been proportionately as
follows :
SPECIE AND PRICE OF GOLD.

3.
10.
17.
24.
81.
February 7 ..
“
14.
ii
21.
((
28.

January
it
tt
a
<(

March
it
««
«(
April
<(
»<
u
May
ti
it
ti
(i

7.

14.
21.
28.
4.
a .

18.
26.
2.
9.

ti

16.
23.
80.
6.
13.
20.
27.

July
ii
it
fi

11.
18.
26.

June
II
if

August
it
“
it
ii
Sept.
ii
ii
“
October
“
ii
ii
“
Nov.
ii
ii

4.

1.
8.
15.

22.
29.
6.

12.
19.
26.
3.
10.
17.
24.
31.
7.

14.
21.

,--------- 1 8 6 2 . ---------- . ,---------------------------- 1 8 6 3 . -----------------------------Received.
Exported.
Received. Exported. Gold in bank. Prem. on gold.
681,448 35,954,550 841 a 3 4 f
442,147
726,746 36,770,746 34 a 39
885,928 1,035,025 1,277,788
1,380,247 37,581,465 40 a 49
647,703
780,816 38,549,794 47 a 60#
322,918
678,841
627,767
1,331,027 38,894,840 481 a 601
310,484
801,860 1,277,000 38,243,839 671 a 671
854,000
976,235
614,146 1,166,154
359,978 1,162,846 38,426,460 531 a 531
520,017 37,981,310 54 a 64
759,247
934,512
741,109
510,774
285,394 1,377,016 39,612,256 71 a 72
679,074
585,236 1,243,551
733,648 39,705,089 521 a 53
677,058
477,335
3,640,550 36,110,085 641 a 541
540,968
249,514 1,201,907 33,955,122 63 a 541
490,368
779,564
169,105 1,050,156 34,817,691 41 a 42
673,826
250,778
473,885 84,257,121 63 a 54
581,293
1,605,728
250,728
607,059 35,406,145 4 i a 521
158,487 36,761,696 52 a 531
693,436
617,279
217,602
635,546 1,161,300
256,604
629,855 37,175,067 47 a 511
410,804
712,276
294,998 36,846,528 48 a 50#
451,827 38,102,683 581 a 47
484,019 1,574,166
205,057
661,996 38,556,552 49 a 491
604,682 1,093,031
501,204
938,032
438,746 38,544,865 4 8 f a 49
258,670
224,911
279,994 37,632,634 44# a 441
881,452
553,035 1,647,299
411,483 37,241,670 46 a 461
318,066
235,364 37,884,128 48 a 48#
852,391 1,990,327
612,461 3,166,988
622,147 38,314,206 42 a 43#
393,212 3,094,101
187,082
134,432 38,271,702 46 a 46#
2,647,060
347,807 38,302,826 44 a 441
401,936 38,712,397 32J a 321
641,451 2,424,916
254,947
2,190,781 38,254,427 23 a 231
441,179 1,846,023
1,725,748 35,910,227 26 a 261
784,537
G. Gate lout.
748,528
270,182
480,374 83,746,681 28f a 29
964,422
890,552
530,044 33,156,548 261 a 27
700,431
313,612 1,210,230 32,874,913 25 a 261
1,089,111
919,825
238,398 31,520,499 241 a 25
231,854 1,379,710 32,030,055 241 a 24#
1,137,644
807,063
309,799 31,989,881 321 a 33
551,097
279,043
852,752 32,018,107 28 a 29
1,042,835
934,415
193,584
585,796 31,014,411 321 a 38
490,866
758,286
996,892
277,380 1,411,611 30,008,566 39 a 891
713,075
803,583 30,064,614 421 a 42#
807,616 2,255,513
268,282 2,555,656 29,927,281 46f a 47
1,714,551
1,206,950 28,382,473 51# a 52
768,121 2,024,380
267,911 1,243,273 28,804.281 451 a 46
685,302 28,124,921 461 a 46#
351,547
547,338
646,017 28,783,281 47# a 471
711,606
395,796 29,177,849 47 a 471
708,731
281,340
1,894,708
261,730 1,006,907
461 a 541
921,207 2,458,529

Total ■ • • • 10,171,916 43,237,818

•

The amount of gold in the eountry at the present time, as compared
with 1861, when the war broke out, has been a matter of some interest.
When the war commenced its first effect was to cause a large importation
o f gold, because the credits existed abroad for produce sold, and the usual
imports of goods ceased.




446

The Ericcson Iron-Clads JTow Building.

[December,

SUPPLY.

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

Import.
U. 8. Mint.
$4,368,175
$81,220,101
37,088,413
28,710,240
1,981,230 20,814,290

Total.......................
$43,427,828
$80,744,631
Excess supply.....................................................................

Total.
$45,578,276
65,798,653
22,795,530

Export.
$27,741,484
37,880,920
50,414,049

$134,172,469

$107,735,453
26,437,006

This must be corrected by the quantities o f coin that have found their
way to Canada and to the South. O f these there can be no correct data.
The probability is that we have now $50,000,000 less coin than when the
war began.

THE ERICCSON IRON-CLADS NOW BUILDING.
14th of October last the Manhattan, one of the new Ericcson iron­
clads, was launched in Jersey City. The Manhattan is a one-turreted
Monitor, resembling the original craft of that name in her general fea­
tures. She will have no masts, no bulwarks, no structure o f any kind on
deck, except the turret. Although in the chief points of her construction
there is great similarity between her and the first vessel o f her kind, con­
siderable difference exists in the details. To give an idea of the progress
made in building this description o f vessels, it will be interesting to recall,
the prominent features of our first and second batches of iron-clads. It
will be observed that only in the dimensions and in some o f the minor
characteristics have we diverged from the original plan. The following
is a correct statement of the peculiarities of these three classes:
T he

T h e orig inal M onitor.

Length............................. .
W idth..............................
Depth of hold...............
Draught of water.........
Armor of sides...............
Thickness of turret. . . .
Diameter of turret........
No. of turrets................
Diameter o f cylinders .
Armament......................
Tonnage ........................ .

Passaic batch.

Manhattan batch.

190 feet.
200 feet.
235 feet.
U
t(
30
40
46 “
a
ll
9
14 “
n
a
a
9
10
14 “
44- inches.
9 inches.
H inches.
a
a
11
11
“
11
21 feet.
21 feet.
21 feet.
1
1
1
35 inches.
40 inches.
30 inches.
2 13-inch,
2 11-in. guns. 11 and 15 in.
844
800
1,400

It will be observed that the most important difference between the
power o f the first Monitors and the Manhattan consists in the armor and
armament— the offensive and defensive attributes. Instead of four anda-half inches o f iron, we have nine inches; and instead of one eleven
and one fifteen-inch gun, the Manhattan will have two thirteen-inch guns,
which, however, will be able to burn more powder than the old fifteen*inch guns.
It was impossible, when adding additional weight o f armor
to the ship, to make the draft of water as light as in the Monitor, if that
were even desirable, which is a matter not decided on. One o f the pecu­
liarities o f the Manhattan is that she has sponsons, which tighten the
frame to the vessel, as it were. In the original Monitor this sponson was
left out, and the consequence was that the overhang was said to have been
the cause of the loss o f that celebrated little vessel. Captain E r i c c s o n




1863.]

The Ericcson Iron- Clads Now Building.

447

does not believe it to have been so, but in order to comply with the wishes
of a majority of the people at "Washington, he introduced this sponson,
which counteracts the influence of the overhang in a great measure and
makes the vessel more compact. The machinery for working the guns
in the turret will be preserved, although the thirteen-inch guns do not
require half the care the fifteen-inch did. It is worth remarking that the
English employ something like fifteen or sixteen men to work the Arm­
strong gun, throwing a much lighter ball than our fifteen-inch gun, while
we can work the fifteen-inch gun with four men, owing to the splendid
mechanical facilities in the turret.
The accident that happened to one
of the Monitors during D upont ’ s attack on Charleston, which resulted in
the temporary crippling of the turret, cannot happen to the Manhattan,
because an immense band o f iron, several inches thick, perfectly solid and
massive, covers the whole external base of the turret, rendering it abso­
lutely impossible for any shot or shell to pierce it. This will insure the
freedom of the turret, so far as its revolving power consists, from being
prevented by an enemy’s shot. The ventilation of the Monitors has been
a subject of great interest, and the Navy Department, as well as its offi­
cers, have given it a great amount of attention. In the original Monitor,
when the hatch was closed down and the ship in battle trim, the air was
very foul, and it was even difficult to exist. In the Passaic batch of ves­
sels the air was much better, and indeed many thought that it was as
good as it need be. Recently, however, improvements have been made,
and the ventilation o f the entire ship is now as good as that o f a 150
linfe-of-battle ship with all her ports open. The invention which gives
this advantageous result is due to Mr. S timers . The wind pipes run un­
derneath the deck and branch off to the officers’ ward-room, forcing a con­
tinuous current of air through the vessel, so that it is rendered cool and
comfortable in the warmest climate. The propeller is driven by two pow­
erful engines, with cylinders of forty inches in diameter and twenty-eight
inches stroke of piston. It will be observed that the speed of the Man­
hattan will, in the natural course of things, be much greater than that
of the original Monitors, as the dimensions of her cylinders are nearly
ten inches greater than those o f the other ships. This is one of the most
important requirements of an iron-clad vessel, particularly of one present­
ing such an unusual bow to the water. The Passaic and Montauk class
have not been able to make as many knots as was expected; but it is
hoped the new batch will do better. The service speed of the Manhattan
is ten knots an hour at sea— nearly double that of her sister Monitors.
In still less important matters there are some points of difference. In
keeping the anchor, for instance, an arrangement by which two holes are
placed on each side of the bow, while in the other Monitors it was directly
in the centre. The head room between decks is also greater than in the
other Monitors. The officers and crew are on the same floor, the former in
the forward and the latter in the aft of the vessel. They number seventyfive men. The berth deck contains sixteen state-rooms. In fastening the
armor, rivets are substituted for bolts, as the latter give way and fly about
when struck by heavy projectiles in a severe engagement. In the arrange­
ment of the machinery, the air and circulating pumps and the surface con­
densers are independent of the main engines, and can thus be operated
when the main engines are standing still, maintaining constantly a vacuum,
and being able to keep up the condensation of steam, instead of blowing it




448

The Ericcson Iron-Clads Now Building.

[December,

off into the atmosphere, which every naval officer will appreciate, because
it has been one of the most intolerable annoyances of the introduction of
steam in the navy that when orders were given on the deck the blowing of
the steam rendered them inaudible, and it could not be silenced without
danger of being blown up.
Thus, we see what are some of the defects o f our own iron-clads, the
ehanges that have been made to cure them, and the improvements that
have been from time to time added. W e believe they have now reached
a point of excellence that will enable them to defy the attack of any Eu­
ropean fleet that can be sent against us. In fact, neither England or
France has, at present, an iron-clad vessel capable o f safely crossing the
ocean.
The following is the class of vessels to which the Manhattan belongs :
Name.

Canonicus.
Catawba. .
Manhattan.
Manayunk.
Mahopac .
Oneota. . . ,
Saugus. . . ,
Tippecanoe
Tecumseh.

Tonnage.
1 ,0 34
1,034
1 ,0 34
1 ,0 34
1 ,0 3 4
1 ,0 34
1 ,0 3 4
1 ,0 3 4
1 ,4 00

Where building.

South Boston.
Cincinnati.
Jersey City.
Pittsburg.
Jersey City.
Cincinnati.
Wilmington, Del.
Cincinnati.
Jersey City.

The following is a list o f all the iron-clad vessels now in course of con­
struction from the plans of Captain Ericcson ;
Names of vessels.
Dictator...........................
Puritan............................
Tecumseh........................
Mahopac.........................
Manhattan.......................
Canonicus......................
Manayunk........................
Cawtawba.......................
Oneota ............................
Tippecanoe......................
Saugus.............................
Napa.................................
Y a z o o .............................
Junxis.............................
U m p qu a.........................
W arsaw...........................
Casco.......................... ..
Simcook...........................
C him o.............................
K lam ath.........................
Suma.................................
Naubac...........................
Shawnee..........................
Cohoes.............................
K o k a ...............................
Squando..........................
Moduc..............................
Nauset.............................
Shiloh...............................
Etlah................................




Contractors.
John Ericcson.
John Ericcson.
Secor & Co.
Secor <4 Oo.
Perine, Secor & Go.
Harrison Loring.
Snowden & Mason.
Niles Works.
Niles Works.
Miles Greenwood.
Harlan, Hollingworth & Co.
Harlan, Hollingworth <fe Co.
Merrick <6 Son.
Reany, Son & Archibald.
Snowden <fc Mason,
A. & W . Denmead & Co.
Atlantic Works.
Globe Work4.
Aquila Adams.
Alexander Swift <fe Co.
Alexander Swift & Co.
William Perine.
Curtis <4 Tilden.
William F. Merritt.
Willcoz <fe Whiting.
McKay & Aldus.
J. Underhill.
Donald McKay.
George C. Bestou.
Charles W . McCord,

Local inspectors.
Eng. E. D. Roble.
Eng. E. Lawton.
Eng. J. Farron.
Amos Broadnax.
Amos Broadnax.
Eng. D. B. Macomb.
W . E. Roe.
Eng. C. H. Loring.
Eng. C. H. Loring.
Eng. C. H. Loring.
Eng. H. H. Stewart.
Eng. H. H. Stewart.
W . K. Thomas.
Eng. R. H , Long.
W . E. Roe.
G. B. Davids.
Eng. E. Lawton.
B. F. Leonard.
Seth Wilmarth.
Robert Glynn.
Robert Glynn.
R. Robinson.
Eng. E. Lawton.
J. Drake.
L . T. Spencer.
1st Asst.-Eng. E. Hoyt, Jr.
J. G. E. Lamed.
1st Asst.-Eng. E. Hoyt, Jr.
D. G. Wells.
D. G. Wells.

1863.]

Journal o f Mercantile Law.

449

JOURNAL OF MERCANTILE LAW.

IMPORTANT INSURANCE DECISION.

A novel litigated case, and one of much importance in the law of ma­
rine insurance, has recently been decided in the Supreme Court of Massa­
chusetts, the details of which occupy a large space in the Boston D aily
Advertiser. The suit was brought by T. W . H oxie against the Pacific
Insurance Company— B igelow , C. J. The facts of the case may be thus
briefly stated :— The vessel which was the subject of insurance in the policy
declared on, having sailed from Perth Amboy in New Jersey, in May, 1860,
bound on a voyage to Aspinwall, was compelled by reason of sea damage
to put back into the port of Bermuda, which she had previously passed in
the prosecution of her voyage, for the purpose of making necessary repairs.
There were in that port ample means and opportunities of putting the ves­
sel in a state of complete repair, and of fitting her in all respects for sea.
On the first day of September, 1860, she was still undergoing repairs, which
were not finished until the fifteenth day of that month, soon after which she
proceeded to sea in the further prosecution of the adventure on which she
sailed from Perth Amboy. The policy declared on was effected on the
twelfth day of September. As nothing is shown to the contrary, it must
be assumed that, at the date of the policy and on the day when the risk
began, the vessel was in such condition, undergoing repairs, that she was
seaworthy for port, so that the policy attached.
In this state of facts, the question to be determined was, whether in a
policy on time upon a vessel so situated there was an implied warranty for
seaworthiness, similar to that which the law implies in case o f a voyage
policy— that is, that the vessel is not only seaworthy for port, but also in a
suitable condition for sea, by a breach of which the insurers are discharged
from liability for loss happening from any cause. This interesting and im­
portant question of commercial law was argued at great length— the code
was pretty thoroughly overhauled, and all cases of apparent analogy cited
— but, from the authorities produced, there would seem to be no founda­
tion, in the opinion of the Judge, for the positions assumed by defendants
that there is no warranty of seaworthiness in any policies on time— a war­
ranty which is said to lie at the basis of the contract of marine insurance.
It is easy to see a good reason for holding that a policy on time effected
on a vessel when at sea does not include any warranty of her seaworthiness
at the commencement of the risk. In such case, the insurance is on a
“ vessel in an unknown sea in an unknown state.” The insured has no
means of knowing her actual condition, or, if she is injured and out of re­
pair, of restoring her to a condition of seaworthiness. Both parties enter
into the contract with a full knowledge of these facts. It would not only
be pushing a rule of law to an unreasonable extent to say that under sueh
circumstances the assured undertakes to warrant his ship, of the conditions
and circumstances of which he could know nothing, to be then seaworthy
for any purpose, but it would be contrary to the manifest intent and under­
standing of the parties. In such cases, the circumstances attending the
making of the contract of insurance tend directly to rebut any implication of




I

450

Journal o f Mercantile Law.

[December,

a warranty of seaworthiness at the inception of the risk. But when it is
attempted to go farther, and to say that, because in certain cases o f insu­
rance on time it cannot be reasonably held that there is an implied war­
ranty of seaworthiness at the inception of the risk, there is no such implied
warranty at all in any such policy, whatever may be the circumstances
under which the contract was entered into, the reasoning seems to be fal­
lacious and unsound. Certainly it would be contrary to all the received
canons of legal exposition to construe policies of this nature as if they were
isolated contracts, having no connection with or affinity to other similar
contracts under the law-merchant, and to which only the general rules reg­
ulating the interpretation of ordinary written contracts are to be applied.
These ought not to be taken out by the mere force of judicial construction
from the class of contracts to which they belong, or from the rules and
principles by which such contracts are interpreted, any further than is ren­
dered absolutely necessary by the peculiar stipulation, which distinguishes
them from other contracts of marine insurance. Indeed, it is with reference
to these rules and principles, long established and well known by all per­
sons engaged in commercial transactions and the business of insurance, that
these policies must be presumed to be made; and to disregard and reject
them in giving an interpretation to the provisions which they contain, would
be clearly contrary to the plain intent and understanding of the parties.
Every implied warranty, therefore, which according to the usages of insu­
rance and the decisions of courts of law is presumed from the fact o f making
an insurance on a ship or vessel under the well known forms adopted for
policies, is to be annexed to and form part of a policy on time, as well as of
one for a specified voyage, unless inconsistent with the nature of the risk or
the circumstances under which the policy was entered into.
It was suggested by the counsel for plaintiff that if any warranty of sea­
worthiness was implied in the policy declared on, it was fully complied with
by proof of the fact that the vessel was seaworthy at Perth Amboy on her
departure in the prosecution o f the adventure during the continuance of
which the policy was effected and the vessel was lost. “ But we are una­
ble,” says the Judge, “ to appreciate the soundness of this suggestion. It
confounds the voyage insured with the actual voyage on which the vessel
happens to be bound at the date of the policy ; these two have no necessa­
ry connection.” The conclusion arrived at by the Judge was, that there
was an implied warranty o f seaworthiness in the policy declared on, in anal­
ogy to that which would arise under similar circumstances in a policy for a
voyage; and, that the insurance having been effected on a vessel while in
port, to take effect from a certain day, which was before she sailed thence,
the warranty includes seaworthiness for ports as well as seaworthiness in
setting out therefrom, as in a policy at and from a particular place.

INTERESTING QUESTION TO IMPORTERS IN U. S, COURT, BEFORE JUDGE
NELSON.
M A N U E L E C H E V E R R IA ET A L . VS. H IR A M

BARNEY.

T his suit is brought to recover back an excess of duties paid under pro­

test on an importation of wool, lead in bars, goat-skins and cotton, in the
Spanish bark Teresita, by the plaintiffs from Matamoras, September 4th,
1862. The duty paid and protested against was a discriminating duty of




1863.]

Journal o f Mercantile Law.

451

ten per cent, claimed under the third section of the act of 5th of August,
1861. The first and second'sections of that act imposed certain duties on
articles specially enumerated in each section. The third section provides
that “ all goods, &c., imported from beyond the Cape of Good Hope in for­
eign vessels not entitled by treaties to be exempt from discriminating du­
ties, &c., and all other articles, goods, &c., not imported direct from the
place of their growth or production, or in foreign vessels, entitled by recip­
rocal treaties to be exempt from discriminating duties, &c., shall be subject
to pay, in addition to the duties imposed by this act, ten per cent ad valo­
r e m . It is admitted that Spain has no such treaty as is mentioned in the
section, and hence there is no difficulty in imposing th§ discrimination
against her in all cases where the section applies. But none of the articles
in this importation, except “ lead in bars,” is charged with a duty in the
two preceding sections, or in any other section of the act, and therefore the
third section imposing the ten per cent does not apply according to its very
terms. The words are— “ in addition to the duties imposed by this act,
ten per cent ad valorem." The first section had imposed “ on lead in pigs
or bars,” a duty of one dollar and fifty cents per one hundred pounds— the
third section, therefore, applied to this article, the Spanish vessel not being
exempt by treaty from the discrimination, which, in addition to the above
rate, charged it with the .ten per cent ad valorem. W ool is charged with
a duty under the twelfth section of the act of March 2, 1861, and goat­
skins, and cotton, under the eighth section of the act of July, 1862. That
section provided, that from and after the day and year aforesaid (1st of
August, 1862), in lieu of the duties heretofore imposed by law on the arti­
cles hereinafter mentioned, and on such as may now be exempt from duty,
there shall be levied, &c., the following duties :— ■“ On cotton, one half cent
per pound ; on hides, raw, and skins of all kinds, ten per cent ad valorem."
Before this, the duty on “ raw hides and skins of all kinds ” was five per
cent, under the tenth section of the act of March 2d, 1861, and under the
twenty-third section of the same act, cotton was free of duty. Whether,
therefore, we look to the third section of the act of August 5, 1861, itself,
which subjects the articles, under the circumstances stated in the section, to
a duty of ten per cent in addition to that imposed by the act in the previ­
ous sections, or to the eighth section of the act of 1862, which imposes the
duty in lieu of the duties heretofore imposed by law, it is quite clear that
the discriminating duty in the third section does not apply to the articles
of wool, goat-skins, or cotton. The difficulty appears to me insuperable to
undertake to apply the third section of the act August 5, 1861, to the arti* cle of wool, which is subjected to duty under the act o f March 2, previous,
or to the articles of goat-skins and cotton, charged with a duty under the
act of July, 1862, when, by the very terms of the third section, the addi­
tional duty there imposed is in addition to the duty fixed by that act of
which the section is a part. If the language had been as used in some of
the sections of the act o f July, 1862, “ in addition to the. duties heretofore
imposed by law”— or had used language which has never yet been used, I
think, in any tariff act— “ in addition to the duties that may hereinafter be
imposed by law’,” the construction claimed by the Government might very
well have been sustained. But no such language is used ; on the contrary,
the language is, as we have seen, “ in addition to tl)£ duties imposed by this
act.” J udgment for the plaintiff.




Journal o f Banking,- Currency, and Finance.

452

[December,

JOURNAL OF BANKING, CURRENCY, AND FINANCE.
BAM RETURNS AND BANK ITEMS.
C ity B an k M ovem ents and R etu rn s .— The past month has been one
of unusual pressure with the New York banks, and consequently of great
strigency in the money market. W e would refer our readers to our
usual money article (Commercial Chronicle and Review,) for a history of
this crisis and its causes. It will be noticed that at the close o f last
month the loans had reached in New York alone $204,000,000, and the
deposits were $173,000,000, while the banks held only $16,000,000 in
legal tenders and still owed their proportion of $27,500,000 on the loan
they had made Government. These few facts, together with the further
ones that now the loans have been reduced to $176,000,000 and the de­
posits to $145,000,000, tell the whole story.
The following have been the payments on the $50,000,000 loan:
5 per cent
U
10
a
10
u
10
u
10
u
10
u
10
a
10
M
10

when loan was taken ........... ____
September 2 0 ......................... ..____
“

2 7 ........................... ____

October 3 ....................................____
1 9 ................................. ____

“

November 1 0 ............................ ____
“
“
“

1 3 ............................____
1 8 ............................
2 1 ............................____

Other banks.
$ 7 5 0 ,0 0 0
1 ,5 00 ,0 0 0
1 ,5 0 0 ,0 0 0
1 ,5 0 0 ,0 0 0
1 ,5 0 0 ,0 0 0
1 ,5 0 0 ,0 0 0
1 ,5 0 0 ,0 0 0
1 ,5 0 0 ,0 0 0
1 ,5 0 0 ,0 0 0

New York banks.
$ 1 ,7 5 0 ,0 0 0
3 ,5 0 0 ,0 0 0
3 ,5 0 0 ,0 0 0
3 ,5 0 0 ,0 0 0
3 ,5 0 0 ,0 0 0
3 ,5 0 0 ,0 0 0
3 ,5 0 0 ,0 0 0
3 ,5 0 0 ,0 0 0

$ 2 9 ,7 5 0 ,0 0 0
Total................................................ ____
Making the total paid.............................
Leaving still to paid.......................... .........................................

$ 1 2 ,7 5 0 ,0 0 0
4 2 ,5 0 0 0 0 0

Amount of loan..................................................................

$50,000,000

7,500,000

On September 5, over two months ago, at a meeting of bank managers
o f New York, the loan committee was authorized to enforce the equaliz­
ation of legal tender notes on any day that it pleased, by a simple order
conveyed to the banks. This resolution to equalize the notes was not en­
forced until Saturday, November 7. The New York banks now hold
about $20,000,000 in legal tenders.
Below will be found our usual bank returns for the three cities, brought
down to thb latest dates :
NEW YORK BANKS.

N ew Y

ork

B an ks.

Date.
January 3,.........
“
10.........
“
17,.........
“
24.........
February 7,.........
“
14,. . . .
“
21,.........
“
28,.........




[Capital, Jan., 1863, $69,494,577 ; Jan., 1862, $69,493,577.)

Loans.
$173,810,009
175,816,010
176,606,558
179,288,266
179,892,161
173,103.592
178,335,880
179,958,842

Specie.

Circulation.

Net Deposits.

Clearing*.

$35,954,550 $9,754,355 $159,163,246 $186,861,762
36,770,746 9,551,663 162,878,249 249,796,48*
37,581,465 9,241,670 164,666,003 314,471,457
38,649,794 9,083,419 168,269,228 298,861,866
38,248,839 8,780,154 166,342,777 302,352,571
38,426,460 8,756,817 167,720,880 265,139,104
37,981,310 8,752,536 170,103,758 291,242,929
89,512,256 8,739,969 173,912,696 340,574,444

1863.]

Journal o f Banicing, Currency, and Finance.

Date.
March
“
“
«

7,........
14.........
21.........
28,........
April
4,........
“
11.........
II
18................
II
25.........
May
2,........
9.........
“
16.........
“
23,........
II
80.........
6,........
June
. U
13.........
“
20,........
“
27.........
Julv
4.........
“
11.........
it
18,........
“
25.........
August
1.........
il
8.........
“
15.........
It
22.........
11
29.........
Sept.
6.........
(«
12.........
II
19,........
it
26,........
October 3 ................
“
10.........
“
17,........
II
24.........
II
31,........
Nov.
7,........
“
14.........
“
21.........

Loans.
181,098,322
177,875,949
173,829,479
172,448,526
173,038,019
170,845,283
169,132,822
171,079,322
177,364,956
180,114,983
180,711,072
181,319,851
181,825,866
182,745,080
180,808,823
177,083,295
176,682,421
174,887,884
175,087,486
173,126,887
173,036,336
176,208,597
176,559,840
175,805,471
175,713,189
176,748,618
178,477,037
200,028,980
207,679,456
204,501,984
206,442,874
206,906,903
206,638,749
204,013,870
203,222,418
193,436,841
182,044,530
176,702,428

Specie.
39,705,089
36,110,085
33,955,122
34,317,691
34,257,121
35,406,145
36,761,696
37,175,067
36,846,528
38,002,633
38,556,642
38,544,865
37,692,634
37,241,670
37,884,128
38,314,206
38,271,202
88,302,826
88,712,397
88,254,427
85,910,227
33,746,681
33,15 6,548
82,874,913
81,620,499
32,030,055
31,989,381
82,018,107
31,014,411
30,008,566
30,064,614
29,927,281
28,382,473
28,804,915
28,124,921
28,783,281
29,177,049
28,054,514

Circulation.
8,693,175
8,657,016
8,609,723
8,560,602
8,348,094
8,178,091
8,039,558
7,565,549
7,201,169
7,080,565
6,901.700
6,780,678
6,494,375
6,341,091
6,210,404
6,120,252
6,004,177
5,998,914
5,927,071
5,880,623
5,775,188
5,700,452
5.706,024
5,613,177
5,645,970
5,475,964
5,456,016
6,457,366
5,414,643
5,377,886
5,375,586
5,522,178
5,618,764
5,799,097
5,971,783
6,100,335
6,095,932
6,122,879

Net DeposMs.
174,689,212
172,944,034
167,004,466
163,368,846
160,216,418
169,894,731
164,122,146
167,863,999
167,696,916
163,656.51S
168,879,180
167,655,658
166,261,121
162,767,154
159,551,150
157,123,301
168,539,808
158,642,825
160,738,496
168,319,544
164,133,549
161,178,146
155,368,116
155,950,043
156,588,095
156,671,695
168,110,687
178,538,622
185,576,199
186,080,773
182,653,494
180,037,283
178,050,317
172,487,596
171,176,254
169,499,193
151,770.498
145,248,846

453
Clearings.
344,484,442
307,370,817
277,831,351
281,326,258
287,347,704
264,468,080
259,417,565
258,654,781
355,557,73*
367,560,731
353,346,664
380,304.748
307,680,918
289,757.539
302,377,276
259,483,221
264,819.856
267,785,773
319,946,652
251,168,769
284,684,421
292,211,821
297,384,006
298,936,160
878,755,630
392,404,680
394,814,312
371,510,559
348,263,949
354,208,025
375,032,638
899,288,092
427,981,203
469,175,465
443,205,385
459,488,709
441,451,540
400,676,757

BOSTON BANKS.
, B oston B a n k s .

( Capital, Jan., 1863, $38,231,100 ; Jan., 1862, $38,231,700.)

Due
Date.
Circulation.
Specie.
Deposits.
Loans.
to banks.
Jan. 5 ,.. $77,339,046 $7,672,028 $8,190,496 $33,372,648
“ 12,.. 77,427,173 7,751,000 8,373,000 33,063,800 17,006,000
II 19,.. 76,624,700 7,710,600 8,199,600 33,382,000 16,647,800
“ 2 6 ... 76,354,000 7,710,700 8,008,500 33,847,000 16,811,700
Feb. 2 ,., 76,496,800 7,685,000 8,865,000 34,076,800 16,889,000
“
9 ... 78,421,000 7,707,000 8,074,000 35,178,600 16,932,000
“ 16,.. 78,481,000 7,794,000 8,001,000 34,903,000 17,070,700
“ 23 ,.. 78,782,600 7,624,000 8,002,000 34,965,500 17,331,000
Mar,. 2 ,.. 79,127,500 7,553,000 8,001,980 35,245,500 17,523,500
it 9 ,.. 79,274,700 7,582,000 8,225,000 35,215,000 17,340,400
ii 1 6 ,.. 79,636,134 7,609,238 7,780,062 32,966,149 17,230,300
it 3 0 ,.. 77,935,000 7,572,600 7,593,800 31,604,500 17,074,400
April 6 ,.. 76,933,600 7,703,800 7,963,500 32,687,000 16.444,000
“ 13,.. 74,561,013 7,812,895 7,762,915 32,494,822 14,557,000
“ 20 ,.. 73,459,160 7,799,315 7,278,506 33,209,742 14,182,000
II 2 7 ,.. 73,558,000 7,838,800 7,040,000 82,781,500 13,303,000
May 4 ,.. 73,218,155 7,854,731 7,433,496 31,949,762 13,237,700
11 ,.. 73,062,789 7,847,849 7,688,233 31,309,985 13,147,000




Due
from banks.
13,520,000
13,727,700
13,958,000
14,490,000
14,183,000
14,095,500
14,583,800
15,004,000
14,446,500
13,434,500
11,601,300
12,280,600
12,947,800
12,653,000
11,966,700
11,622,600
11,800,000

454

Journal o f Banking, Currency, and Finance.
Loans.
Specie.
73,U6«,598 7,794,046
72,874,000 7,777,000
73,424,000 7,751,000
73,592,000 7,738,557
73,237,000 7,780,000
73,351,000 7,697,000
73,421,084 7,688,987
73,548,918 7,744,827
78,485,675 7,774,991
73,421,000 7,684,000
72,860,716 7,811,513
72,390,364 7,793,916
71,997,503 7,798,276
71,880,078 7,813,497
71,447,520 7,780,905
71,478,116 7,752,516
71,717,995 7,637,402
75,599,232 7,591,589
79,595,740 7,595,358
78,358,387 7,707,106
77,798,427 8,042,062
78,160,899 7,991,999
78,216,435 7,880,832
78,746,728 7,850,547
79,378,840 7,841,332
78,554,017 7,975,057
76,412,858 7,908,760

Date.
July 18,..
2 6 ,..
June 1 ...
<( 8 , . .
“ 15,..
« 22 , . .
<4 2 9 ,..
July 6 , . .
13,..
<( 20 , . .
« 2 7 ,..
Aug. 3 ,..
U 10, . .
(« 17...
(( 2 4 ,..
« 3 1 ,..
Sept . 7 ,..
14,..
(( 21 , . .
« 2 8 ,..
Oct. 5 ,..
“ 12 ,. .
<• 19,..
26 ,..
Nov. 2, . .
“
9 ...
“ 1 6 ...

Circulation.
7,167,327
7,011,700
6,918,000
7,030,286
7,109,000
7,844,500
7,040,624
7,473,800
7,508,442
7,401,500
7,246,797
7,317,402
7,440,212
7,198,917
7,303,757
7,227,704
7,527,036
7,600,556
7,604,161
7,620,371
8,107,720
8,399,769
8,323,451
8,0S6,072
8,606,626
9,527,161
9,618,158

Deposits.
32,192,770
33,000,000
32,576,000
31,728,286
31,477,600
81,356,800
31,477,596
31,509,263
30,277,602
29,287,000
28,011,571
28.384,096
28,247,266
27,898,073
27,510,154
27,762,955
28,778,498
31,143,688
34,509,214
34,495,540
35,435,811
35,734,989
36,127,597
86,682,299
36,775,102
34,557,547
33,165,071

[December,

Due
Due
to banks.
from banks.
12,863,600 11,782,000
12,787,000 11,748,000
12,735,000 10,704.500
12,626,700 10,874,700
12,235,500 10,541,000
12,504,600 10,914.700
12,388,000 10,900,000
12,233,000 10,891,000
12,193,000 10 ,712,009
13,802,000 10,154,600
9,864,800
12,950,000
12,655,000
9,646,000
12,822,673 10,135,180
12,766,527
9,603,257
9,573,673
12,662,321
9,820,500
12 614,000
12,879,000 10,874,700
13,424,000 11,097,000
13,565,000 11,487,500
13,315,000 12,138,000
13,498,000 13,765,500
18,909,500 14,123,700
13,506,500 13,967,000
13,909,600 14,123,700
13,381,000 12,206,000
12 ,668,000 12,172,600
11,726,600 12,069,000

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

Date.
6, . . , .
12 , . . .

Jan.
M
<<
“

19,. . .
2 6 ,...

Feb
ii
«
“

e
*)■■ ■

9 ,.. .
1 6 ,. . .
2 3 ,...

Mar. 2

. . .

«<

9,’ ..'.’
U
16,. . .
it
2 3 ,...
“
3 0 ,...
Apr. 6 , . . .
1 3 ,...
20 ,. . .
“
27,. . .
May 4 , . . .
11 , . . .
n
1 8 ,...
“
25,. . .
June>

44
8, . .
June 1 5 ,...
“
22 , . . .
64

2 9 ,...

July 6 ,. . .

13,. .
44

20 , . . .

.

Loans.
$37,679,675
37,633,757
37,416,694
37,479,712
37,268,894
37,336,367
37,710,851
37,720,460
37,901,080
38.603,871
39,260,028
39,458,384
38,937,612
37,516,520
36,250,402
36,296,644
86,482,058
86,587,294
36,593,179
86,887,301
87,116,093
37,143,937
37,157,769
37,228,627
37,219,216
37,250,665
35,936,811
34,866,842
34,662,966




{Capital, Jan., 1863, $11,740,080; 1862, $11,970,130.)
Due
Due
Specie. Circulation. Deposits.
to banks. from banks.
$4,510,750 $4,504,115 $28,429,189 $6,948,785 $1,994,928
4,544,786 4,450,676 28,018,792 6,890,968 1,848,982
4,549,369 4,382.520 27,877,069 7,050,847 2,275,905
4,572,419 4,284,947 28,773,517 6,755,980 2,638,985
4,562,580 4,181,503 29,231,753 6,698,210 2,909,857
4,319,706 4,039,918 28,062,164 6,953,215 2,518,086
4,272,347 3,888,185 28,759,049 7,452,563 2,432,073
4,276,761 3,772,781 29,342,596 7,413,249 2,703,196
4,267,626 3,696,097 30,178,518 7,185,670 2,758,852
4,249,035 3,608,870 30,679,259 7,100,258 2,499,1^9
4,247,817 3,534,880 30,549,587 7,476,603 1,939,449
4,247,688 3,295,862 30,106,135 7,418,482 1,935,014
4.311,704 8,369,194 29,171,283 6,604,758 2,158,007
4,389,252 3,374,417 29,531,559 5,768,558 2,770,129
4,343,242 3,296,685- 30,117,527 5,953,809 8,014,229
4,343,988 8,185,042 31,059,644 5,306,809 3,018,727
4,346,377 8,078,921 31,021,799 5,448,124 2,659,868
4,355,324 2,989,428 30,859,231 5,328,898 2,891,087
4,359 365 2,901,600 30,949,781 4,975,939 2,542,792
4,357,119 2 ,866,121 31,892,308 4,640,623 2,536,279
4,357,169 2,808,109 32,455,953 4.623,392 2,480,714
4,357,021 2,706,953 31,888,763 4,707,278 2,363,548
4,357,076 2,649,283 31,549,839 4,645,712 2,313,744
4,357,025 2,621,098 31,648,959 4,914,425 2,892,278
4,356,744 2,596,115 31,293,830 4,868,495 2,065,913
4,359,543 2,556,855 31,466,204 5,116,692 1,820,600
4,360,745 2,564,558 28,504,544 5,060,096 1,961,814
4,360,003 2,507,258 28,701,813 4,784,348 2,530,562
4,361,999 2,482,-986 29,931,608 4,580,322 2,981,867
t

1863.]

Journal o f Banking, Currency, and Finance.
•

Data.
July 2 7 , . . .
Aug 3 , . . .
it 1 0 ,. ..
U 1 7 ,. ..
« 8 1 ,. ..
Sept 7 , . . .
a
1 4 ,. ..
2 1 ,. ..
it
2 8 ,...
Oct. 5 , . . .
1 2 ,. ..
1 9 ,. ..
<( 2 6 ,. ..
Nov 2 , . . .
“
9 ,...
« 1 6 ,. ..

Loans

34,517,347
34,390,179
34,645,243
35,390,179
35,296,376
35,773,596
39,575,410
40,175,698
39,485,313
38,798,830
39,046,434
38,833,337
38,683,057
89,180,421
38,647,125
87,876,645

Specie. Circulation.
4,227,448 2,418,463
4,187,056 2,417,739
4,112,013 2,380,720
4,112,542 2,353,396
4,113,809 2,292,607
4,113,162 2,258,306
4,103,115 2,223,533
4,102,701 2,224,632
4,116,683 2,224,374
4,227,265 2,193,000
4,239,551 2,169,314
4,238,677 2,159,638
4,238,519 2,123,617
4,164,804 2,106,284
4,167,671 2,109,521
4,158,884 2,089,990

Deposits.
30,448,430
30,799,448
30,513,961
29,959,127
30,195,167
30,654,672
33,626,702
83,039,035
32,402,783
32,258,554
82,536,502
32,684,915
32,505,953
81,805,965
30,812,091
30,732,600

Duo

455
Due

to banks. from banks.
4,806,045 8,034,009
4,963,290 2,772,717
4,740,391 2,538,096
5,161,573 2,158,440
4,551,0.31 2,219,071
4,574,037 1,997,534
4,997,015 1,801,678
6,079,742 1,802,889
4,616,754 1,822,228
4,427,097 1,976,561
4,446,684 2,035,819
4,361,072 1,926,707
4,337,835 1,911,956
4,697,888 1,943,382
4,336,929 2,051,061
4,076,614 1,925,740

The following is a statement of the amount of United States legal tender
notes held by the Philadelphia banks at the dates mentioned :
June 22...................

“

29...................
July 6...................
“ 13................... .........
“ 20...................
“ 27................... .........
Aug. 3................... .........
“ 10................... .........
“ 17................... ...........
“ 31................... .........
Sept. 7................... .........

6,916,751
7,903,732
8,430,782
7,780,640
7,530,339
6,853,540
7,382,810

Sept 14....................
“ 21..................... .........
<( 28....................
Oct. 5....................
<< 12....................
“ 19....................
« 26....................
Nov. 2....................
“
9 ....................
« 16....................

6,573,404

E u ro pean F in a n c e s — B a n e oe E n g l a n d R etu rn s .— W e publish this
month an article in reference to the serious aspect of Furopean finances, at
the present time. The drain of specie from those two great specie reser­
voirs, the Banks of England and France, has been carried on to such an
alarming extent as to induce the directors of those two institutions to raise
their rate to six per cent. This may relieve them temporarily, but as the
purchase of cotton from India and other new sources is going on and must
continue to go on so long as this war lasts, payment for which must be
made in specie, it can be but a temporary remedy. W e see that the Lon­
don Economist proposes to alleviate the pressure by drawing on India for
its home expenses, etc., which fall due about six months hence— that is, it
would pay what it now owes by anticipating these demands. It says :
“ It is to be remembered that the cause of the present difficulty is a drain of silver
to the East which the Bank of France did not in due time provide against. W e are
suddenly obliged to send much bullion to India from hence. Now, it so happens that
the Council of India are constantly drawing money from. India. They accepted ten­
ders for bills for £400,000 during the last week. It is the ordinary course of events
that the Indian Government should remit hither money for their home expenses,
which are more than £5,000,000 annually, and there is also a considerable amount of
India debentures which fall due next spring. The normal state of things is, that the
Secretary of State for India draws on India, where all his revenue is received, for all
he has to expend in England, whether of ordinary outgoings or for the repayment of
debt. For this purpose, he must get cash from India. We confess that it does not
seem to be unreasonable that the Council of India should select the present moment
for drawing to an unusual extent jn India; for getting more cash from thence at this
moment when we have so much to send thither. The effect of this will be that the




456

Journal o f Banking, Currency, and Finance.

[December,

drain to India will be stopped, and that no money will be tint either way. The polit­
ical demand of England on India will compensate and neutralize the commercial de­
mand of India upon England.
“ The Indian Government will be no loser by this operation. They never will be
able to sell bills upon India in a better market. For the £400,000 they Bold this
week, the tenders within the prescribed limits amounted to the enormous sum of
£2,830,000, and no seller can expect a better demand than this for his article. There
is nothing unnatural or artificial in the operation we recommend. It is known that
the eash balances in India are very ample, and that money is being remitted from
thence. W e do not wish a shilling to be brought home in consequence of the difficul­
ty in our money market which would not otherwise have been brought home. W e
only suggest that what money is bo drawn for should be drawn for now ; that there
be no risk of money passing both w ays; that we should compensate for the neglect
of the Bank of France, which has aggravated this sudden demand to India, by calling
in our debts from India somewhat quicker than we should have otherwise asked for
them.”

This is all right and proper, we suppose, if the Government sees fit to do
it, and yet it looks a little ridiculous for a wealthy nation, like Great Bri­
tain, to be living on its next year’s income. A short time ago, all London
was laughing at Paris, because the Bank o f France was compelled to g o to
the former city and buy specie enough to carry it through the crisis. Now,
however, England would go to India (she always goes to India when in
trouble) to obtain help on a similar occasion. W hat will , she do next
year ? There will be the same cotton to pay for, and the same balance (if
not a greater) against her, on account of it.
The following comparative table will be of interest, showing as it does a
view of the bank returns, the bank rate of discount, and the price of wheat
in London during a period of three years corresponding with the date of
our last returns, November 4th:
At corresponding dates with the week ending
November 4, 1863.

ic c i
loOl.

Circulation, including bank post bills.. .
Public deposits...........................................
Other deposits......................................
Government securities.............................
Other securities............................................
Reserve of notes and c o in .......................
Coin and b u llion ...........................
Bank rate of discount...............................
Average price of wheat.............................

£21,576,697
4,240,889
13,515,241
11,712,187
16,460.864
8,087,459
14,210,774
8 per cent.
59s. 5d.

iocn

loOS2.
£21,878,962
6,271,105
14,979,889
11,063,992
19,627,192
8,976,266
15,425,810
3 p. cent.
48s. 7d.

icc*

1804.
£22,783,018
5,066,818
18,861,173
10,949,363
20,009,524
6,408,458
13,799,428
6 per cent.
41s. 2d.

Subjoined is our usual table with the returns brought down to Novem­
ber 4th, 1863 :
WEEKLY STATEMENT.

Circulation.

Date

Dec. 1 7 .. . £19,932,360
u

2 4 ..
8 1 ..
Jan. 7 . .
it
1 4 ..
ti
2 1 ..
tt
2 8 ..
Feb. 4 . .
tt
1 1 ..
tt
1 8 ..
“
2 5 ..
Mar. 4 . .
««
1 1 ..
«

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

20,150,398
20,616,435
20,927,993
21,018,849
20,893,931
20,771,236
20,709,154
20,444,454
19,916,496
19,715,828
20,322,055
19,801,665




Coin and
Private
Bate of
Public
Securities.
Bullion.
Deposits.
Deposits.
Discount.
£8,507,144 £14,033,994 £30,539,363 £15,031,658 8 pr. ct.
tt
8,664,499 14,306,497 31,346.781 14,870,795 3
tt
8,338,717 15,469,254 32,488,020 14,956,421 3
tt
8,782,808 14,393,308 32,620,233 14,636,565 3
it
4,280,730 16,772,782 31,165,075 14,102,169 4
tt
4,965,798 14,993,225 80,227,086 18,866,849 4
ti
5,416,868 14,414,763 30,238,866 13,611,823 5
t‘
6,351,617 13,852,287 29,997,233 13,692,136 6
M
6,952,808 13,596,356 30,288,406 14,070,651 5
tt
7,413,275 18,769,276 29,890,503 14,589,222 4
it
7,901,658 13,367,153 29,709,079 14,614,096 4
ti
8,036,003 18,368,086 30,880,805 14,504,517 4
ti
8,673,899 13,282,605 ' 31,096,827 14,328,178 4

1 8 6 3 .]

Date.
Mar. 1 7 . .

II

2 4 ..
Apr. 1 . .
i<
8 ..
II 1 5 . .
«
2 2 ..
II 2 9 . .
M ay
6 ..
II 1 3 . .
If 2 0 . .
(t 2 7 . .
J une 3 . .
II 1 0 . .
tl 1 7 . .
II 2 4 . .
July 1 . .
8 ..
it 1 5 . .
“
2 2 ..
Aug 5 . .
12 .
<1 1 9 . .
II 2 6 . .
Sept . 2 . .
it
9 ..
“
1 6 ..
II 2 3 . .
“
30 .
Oct. 7 . .
1 4 ..
21. .
2 8 ..
Nov 4 . .

u

Journal o f Banking, Currency, and Finance.
Circulation.

Public
Deposits.

20,012,331
2 0,136,276
20,9 65 ,2 2 8
21,2 79 ,3 3 9
21,326,S 20
21,4 13 ,2 2 6
21,4 52 ,8 0 0
21,376,999
21,2 52 ,9 1 6
21,2 68 ,3 1 5
2 0,9 0 9 ,8 1 9
2 1 ,0 09 ,8 9 2
2 1,080,460
20,6 55 ,4 7 3
20,525,655
2 1,738,756
22,0 38 ,4 7 8
2 2,194,996
22,2 30 ,6 1 2
22,3 40 ,8 0 9
2 1,9 37 ,1 9 8
2 2,0 03 ,1 7 6
2 1 ,6 99 ,6 9 6
21,9 20 ,7 2 2
21,646,811
2 1,487,105
21,615,731
2 2,3 1 2 ,7 4 7
22,5 45 ,4 0 7
2 2 ,8 60 ,6 9 5
22,8 24 ,4 6 6
2 2,6 0 0 ,4 0 8
2 2,7 8 3 ,0 1 8

9 ,343,499
10,364,471
10,107,041
6,7 1 4,10 9
5,769,276
6 ,316,413
7,1 7 8,31 2
7 ,241,739
6,7 3 5,13 7
7,6 1 0,27 8
8,002,346
8 ,779,387
9,782,830
9,882,135
10,279,053
10,356,373
5 ,593,834
4,948,458
5,386,948
5,5 7 7,26 8
5,7 5 4,86 3
6 ,126,668
6,713,801
6,8 1 8,18 2
6,9 9 7,40 2
7,371 510
8,291,491
9 ,270,486
9 ,510,057
4,6 1 6,05 2
4,4 3 7,83 5
4,4 6 2,16 3
5 ,0 6 6,81 8

Private
Deposits.

Securities.

Coin and
Bullion.

1 3,003,088
12,7 42 ,2 8 2
1 3,1 7 2 ,0 9 0
1 4,8 29 ,8 3 2
15,013,391
1 4,739,897
13,606,939
13,122,087
1 3,727,556
1 3,983,654
1 3,8 42 ,7 1 8
13,8 96 ,4 5 0
13,783,263
13,904,506
13,809,996
16,274,739
1 8,5 9 5 ,7 1 8
16,381,914
1 4,675,625
1 3,790,855
13,5 78 ,3 5 8
13,0 05 ,3 2 2
1 2,806,568
1 3,261,512
1 2,909,484
13,484,939
12,8 59 ,5 8 0
18,717,460
1 2,893,642
16,3 52 ,8 1 8
1 5,2 7 1 ,2 6 2
15,015,128
13,861,173

3 1 ,4 82 ,1 7 0
3 1,896,338
32,7 75 ,7 5 2
3 0,9 46 ,7 8 4
2 9,974,677
30,1 82 ,5 3 3
2 9,994,849
29,7 18 ,6 0 2
30,2 01 ,1 2 0
3 1,484,815
3 1 ,4 12 ,1 9 0
32,389,044
3 3,2 40 ,1 9 2
3 2,750,953
32,756,459
3 6,490,515
3 4,647,336
32,052,521
3 0,975,774
3 0,289,227
2 9,657,833
2 9,503,127
2 9,322,757
3 0,180,384
2 9,919,643
3 0,6 01 ,9 4 0
30,9 60 ,8 0 9
33,7 51 ,4 0 3
3 3,8 2 9 ,7 6 4
3 2,382,508
3 1,028,819
30,7 85 ,8 5 2
31,055,887

14,647,812
15,025,274
15,141,755
14,963,835
15,229,237
15,387,151
15,348,492
15,141,760
14,653,141
14,529,451
14,500,019
14,425,553
14,556,121
14,850,156
15,026,118
15,080,271
14,824,969
14,749,876
14,620,872
14,843,185
1 5,040,819
1 5,081,152
1 5,309,384
1 6,494,219
15,845,488
15,461,666
15,632,838
15,277,885
14,8 56 ,0 3 7
14,570,611
1 4,645,269
1 4,437,574
13,7 99 ,4 2 8

457

Eat© of
Discout.
4
4
4
4
4
3

“
u
t«
it
it

tl
ii

H

3
3

ii

4
4
4 '
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
6

ii

u

ii

“
ii
it

il
it

ii

tt
“
it
it

“
it
tl

ii

it
u
it
it
it

U nited S tates B a n k s .— W e see that the National Bank movementlias
extended to the Crescent City. The First National Bank o f New Orleans
is now in process of organization. The contemplated amount o f capital is
placed at $500,000, o f which about $200,000 is said to have been sub­
scribed. This being the first bank in the Southwest under the act of Con­
gress of February, 1863, will o f course receive the Government business,
which, under the large and increasing disbursements in New Orleans, ought
to be of advantage to the bank and stockholders.
There has been great delay in furnishing the banks with the new Gov­
ernment currency, and consequently many complaints have been made.
Promises have been frequently given that it should be ready in a few days,
but thus far they have not been kept. In this connection, the following
extract of a letter from the Controller of the Currency to the President of
the First National Bank of New York, will be of interest:
W ashington , November 13, 1863.
I have been a good deal troubled about the delays that have occurred
in the preparation of the National Currency, but I am now quite hopeful
that those delays are about over, and that we shall be ready to commence
the delivery of notes to the banks bv the 1st proximo.
Yours truly,
H . M cC ulloch, Controller.
The books of subscription to the capital stock of the Five million NaTOL. XLIX.— NO. VI.




30

458

Journal o f Banking, Currency, and Finance. - [December,

tional Bank of this city were opened on the 23d of November, at the of­
fice of the United States Trust Company. The capital of this bank, it will
be remembered, is to be $5,000,000, with power to increase to $50,000,000.
In our last number, we published the call for the meeting, at which the
proposed institution had its inception, and also briefly stated the proceed­
ings of those present. The next step toward organization is now being
taken, and, judging from present appearances, the bank will soon be under
way.
Thus our country moves on in the newr course marked out for us, finan­
cially. W e pray that it may be a safe one. And yet we can but trem­
ble at the thought of a fifty million bank, and that bank only the head of
perhaps fifty million others spread over the country. It is true, these cor­
porations promise fair at present, and if in the future they continue to be
guided by the present intentions of their instigators, their existence may
not be regretted ; but if in after time these corporations come within the
grasp of designing men, who would not scruple to wield their immense
power for the furtherance of their own ambitious ends, or if they should
degenerate into speculating machines, like the old United States Bank,
while in the hands of N ic h o l a s B iddle , or, worse still, if they become the
creatures of some future administration, selfish and corrupt, can we appre­
ciate, even, the evils that await us from this one cause ?
W e learn from the Philadelphia Commercial List & Price Current, that
the First National Bank of Philadelphia, on November 17th, increased its
.capital stock from $150,000 to $500,000, and purposes, at an early date,
as soon as the business of the bank requires it, to make a further increase
to $1,000,000. O. W . D a v is , who resigned the position of President, in
order to devote his entire time to the duties of his profession, still retains
the position of director. C. H. C l a r k , of the house of E. W . C l a r k & Co.,
bankers, has been elected in his stead. The following are the directors o f
the Bank as now organized: C. H. C l a r k , J a y C o o k e , S. A. C a l d w el l , J.
B. M o o r e h e a d , W . S. R ussell , E. W . C l a r k , O. W . D a v is . The bank
is understood to be mostly owned by the two well-known banking firms in
in that city, E. W . C la rk & Co., and J a y C ooke & Co.
C o n d itio n o f the B an k s of N e w Y ork S t a t e .— The following shows
the aggregate of the resources and liabilities of the banks of the State of
New York as exhibited by their reports to the Superintendent of their con­
dition on the mornings of September 26, 1863 and June 13, 1863:
LIABILITIES.

Capital.............................................................
Circulation......................................................
Profits...............................................................
Due banks......................................................
Due individuals and corporations other
than banks and depositors....................
Due treasurer of the State of New York
Due depositors on demand.........................
Amount due not included under either the
above heads................................................
Add for cents.................................................
Total........................................................




Sept. 26, 1863.
$109,258,147
33,423,230
17,119,176
48,605,902

Juno 13, 1863.
$108,499,653
32,261,462
19,403,336
49,193,323

2,745,869
4,389,248
233,611,282

2,079,981
4,707,306
218,717,725

25,971,848
525

2,496,894
505

$475,125,227

$436,419,085

1863.]

.

459

Journal o f Banking, Currency, and Finance.

Loans and discounts....................................
Overdrafts.......................................................
Due from banks............................................
Due from directors................... $6,572,010
Due from brokers.................. 14,722,542
Real estate..................................
.............
Specie...............................................................
Cash items........ ..............................................
Stocks, promissory and U .S . 7 3-10 notes
and indebtedness certificates................
Ronds and mortgages...................................
Bills of solvent banks aud U S. demand
notes............................................................
Bills of suspended banks............... $78
Loss and expense account.........................
Add for cents.................................................
Total

$203,462,460
668,495
21,949,185

d

..................
8,865.541
31,071,759
53,253,433

$183,647,438
463,785
22,404,378
$6,198,572
..................
6.811.600
........... ..
11,300 and 8,972,098
40,250,309
48,482,170

120,856,200
6,579,543

109,491,478
$86,000 and 5,731,518

28,746,183
229
771,248
948

$65 and

$475,125,2*7

16,790,53^
245
1,191,229
918

$486,419,685

In September three hundred and nine banks were in operation and re­
ported, including the Pulaski Bank, which is voluntarily winding up its
affairs.
The Bank of Canton, Lake Bank, Henry D. Barto & Co.’s Bank, and O.
Paddock & Co.’s Bank, made their first imports.
The Perrin Bank, Rochester, is voluntarily winding up, and did not report.
The Hope Bank, of Albany, commenced operations since last report, but
not in time to be included in the September report.
To show the remarkable changes in the returns during the war, we give
the movement since September, 1861, in the four principal items of the quar­
terly report:
Date
September,
March,
June,
September,
December,
March,
June,
September,

1 8 6 1 ...
1 8 6 2 ...
1 8 6 2 ...
1 8 6 2 ...
1 8 6 2 ...
1 8 6 3 ...
1 8 6 3 ...
1 8 6 3 ...

Circulation,

Deposits.

Specie.

$28,015,748
28,830,973
33,727,382
37,557,373
39,182,819
35,506,606
32,261,462
33,423,230

$111,895,016
121,988,259
160,438,244
186,390,795
191,537,897
221,544,347
218,717,725
233,611,282

Discounts.

$38,089,727
34,301,092
32,882,693
39,283,981
87,803,047
#6,802,438
40,250,309
31,071,759

$176,055,848
162,017,987
184,501,261
165,584,063
178,922,536
183,864,089
183,617,438
203,462,460

D ivid e n d s of the P h il a d e l p h ia B a n k s .— The Philadelphia banks,
with the exception of the Bank of North America, (which makes it divi­
dends in January and July,) declared their semi-annual dividend the first
of the month, and the Commercial L h t and Price Current o f Philadelphia
gives the following statement of these November dividends, compared with
those of May last:
Banks.

P hiladelphia........................ . .
Farmers and Mechanics . . . ,
Commercial...................... .....
Mechanics’ ..............................
Northern Liberties...............
Southwark.............................
Kensington............................
Penn Township....................
W estern.................................




Capital stock.

/—When declared.

$1,800,000 May 5 Nov. 5
U 4
2,000,000
“ 5
tt 4
1,000,000
“ 5
u 5
800,000
“ C
tc 7
500,000
“ 7
u 7
250,000
“ 8
u
250,000
5
“ 10
il 6
350,000
“ 6
u 5
418,600
“ 5

Amount of
dividend.

$90,000
100,000
50,000
48,000
35,000
20,000
25,000
21,000
21,900

460

Journal o f Banking, Currency, and Finance.

Banks.

Capital stock.

Manufacturers and Mechanics.
Com m erce.................................
Girard.........................................
Tradesmen’s ...............................
Consolidation.............................
City.............................................
Commonwealth........................
Corn Exchange..........................
Union..........................................
First N ational........... ...............

Amount of
dividend.

/—When declared.—*

570,150 May 5 Nov.
U 5
250,000
“
a 4
“
1,000,000
u 5
150,000
“
u 5
267,560
“
u 4
433,850
“
u 4
“
286,425
u 5
300,000
“
u 5
208,320
“
150,000 Not 6 months

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

{December,

34,200
6
12,500
5
5
50,000
7,500
5
13,378
5
17,354
4
11,473
4
15,000
5
10,411
5
in operation.
$581,725

$11,985,380

The dividends for the November semi-annual period have been generally
increased, and all are payable clear o f tax. The amount of dividends is
$581,725, against $512,488 at the semi-annual period in May, being an in­
crease of $59,287.
R eal

and

P e r so n a l E state ,

and

S e p t e n n ia l A ssessm ent ,

of

P h il a ­

d e l p h ia .—

The Philadelphia Commercial List also publishes the following
statement of the value o f the real and personal property of Philadelphia
which has just been returned by the assessors, for the year 1864 :
r e a l an d p e rs o n a l

Real estate.
$ 5 ,7 2 6 ,2 3 9
3 ,3 2 9 ,9 2 5
2 ,5 5 5 ,8 0 2
2 ,9 8 6 ,5 9 4
1 2 ,8 0 5 ,6 6 5
2 0 ,5 0 4 ,9 2 0
7 ,5 2 5 ,6 8 6
1 3 ,0 6 0 ,3 0 3
1 1 ,1 5 9 ,3 7 5
8 ,1 4 9 ,8 8 8
4 ,5 9 9 ,2 7 0
4 ,0 9 2 ,8 3 6
5 ,3 4 3 ,4 2 5
5 ,1 8 7 ,4 6 0
7 ,5 8 3 ,8 4 9
3 ,0 9 2 ,3 2 5
2 ,0 4 1 ,3 1 1
2 ,7 9 4 ,0 3 1
4 ,0 9 9 ,6 0 0
6 ,7 9 5 ,8 0 9
3 ,2 3 2 ,9 7 8
4 ,9 0 1 ,5 9 4
3 ,4 7 1 ,2 5 2
5 ,5 6 9 ,2 3 7
3 ,0 5 8 ,9 9 4

Wards.
i ..........____
2 ____ ____
3 ____ ____
4 .......... ____
5 .......... ____
6 _____ ____
7 .......... ____
8 .......... ____
9 .......... ____
1 0 .......... ____
1 1 .......... . . .
1 2 .......... ____
1 3 ..........
1 4 .......... ____
I S .......... ____
1 6 ..........
1 7 ...........
1 8 ..........
1 9 .......... . . .
2 0 ..........
2 1 ..........
2 2 ..........
2 3 .......... . . .
2 4 ..........
2 5 ..........

$ 1 5 3 ,6 6 8 ,3 6 8




Furniture.
$600
. . .
400
1 ,6 0 0
9 7 ,7 0 0
3 2 ,2 5 0
3 5 4 ,7 5 0
6 8 4 ,7 0 0
2 4 2 ,4 5 0
1 9 5 ,6 6 0
2 ,8 0 0
8 0 ,6 0 0
1 1 6 ,1 9 0
2 9 ,5 0 0
2 9 ,8 0 0
4 ,4 0 0
200
5 7 ,6 0 0
1 3 ,9 0 0
6 9 ,4 2 5
1 4 ,7 0 0
2 5 ,4 2 0
5 ,1 5 0
$ 2 ,0 5 9 ,7 9 5

e st a t e .

Horses, etc.
$ 1 6 ,0 8 5
5 ,8 55
1 ,2 6 0
1 ,0 00
9 ,4 8 0
3 ,0 7 0
1 0 ,8 3 5
4 9 ,4 6 5
2 9 ,7 7 5
2 6 ,4 9 0
9 ,9 30
1 0 ,9 5 5
4 ,1 0 0
5 ,1 85
2 5 ,39 5
4 ,3 7 0
6,9 50
9 ,6 4 0
1 5 ,2 1 0
3 5 ,9 3 0
2 7 ,8 7 5
7 0 ,8 7 5
5 6 ,3 1 0
7 9 ,9 2 6
1 3 ,9 4 0
$ 5 2 9 ,8 9 6

Carriages.
$825
2 ,0 6 0
30
450
9 ,2 4 0
1,720
8,375
3 1 ,8 0 0
1 8 ,15 0
2 1 ,6 1 0
1 ,0 70
7 ,0 3 0
3 ,1 1 5
2 ,3 55
2 ,9 0 0
1 ,1 20
1 ,3 20
1,650
210
6 ,1 2 0
3 ,0 5 5
2 3 ,3 7 5
1 0 ,4 3 0
7,073
2 ,1 0 0

Personal.
$ 7 ,2 8 6
5 ,4 6 9
3 ,1 5 2
3 ,6 1 0
3,071
2,901
4 ,2 5 7
3 ,6 1 9
3 ,5 8 8
4 ,3 4 0
3 ,4 4 0
2 ,2 3 4
3 ,6 3 0
4 ,2 61
5 ,9 2 3
4 ,1 9 9
4 ,3 7 2
4 ,6 1 3
6 ,5 0 6
7 ,0 2 3
3 ,1 5 7
4 ,1 6 6
3 ,6 6 2
4 ,5 3 0
2 ,3 0 5

$ 1 6 7 ,2 7 3 $ 1 0 6 ,3 1 4

1863.]

461

Journal o f Banking, Currency, and Finance.

The above valuation is exclusive of property exempt by law. The as­
sessed value of property returned as rural amounts to about $18,000,000.
The returns of the taxable inhabitants of Philadelphia has also been made
by the assessors, under the direction of the City Commissioner, in accord­
ance with the act of 1821. The following are the complete returns to be
sent to Harrisburg for the purpose of fixing the number o f representatives
for 1864 :
Wards.

Males.

...........
2 ...........
3 ...........
4 ...........
5 ...........
6 ...........
7 ...........
8 ...........
9 ...........
1 0 ...........
1 1 ...........
1 2 ...........
1 3 ...........
1 4 ...........
15 ...........
1 6 ...........
1 7 ...........
1 8 ...........
19 ...........
2 0 ...........
2 1 ...........
2 2 ........... . . .
2 3 ...........
2 4 ........... . . .
2 6 ...........

Deaf and
Females. Blind. Dumb.

7,384
334
2
5,573
504
10
152
1
3,039
3,012
1
19
1
2,088
186
2,692
3
111
2
4,978
418
4,007
723
6
4,025
1,158
5
4,319
282
2
3,301
52
2
3,307
164
0
3,807
3
559
4,502
198 * 1
7,151
20
555
3
4,706
293
4,769 '
4
54
4,608
132
5
6,807
474
5
7,218
522
8
3,578
299 • 4
4,286
249
3
344
3,906
11
5,055
215
4
2,159
98
1

i

111,117

8,096

107

Whites.

Total
Colored. Taxables.

2
6
1
0
0
2
3
0
1
1
3
3
0
7
3
4
1
3
4
3
0
0
4
1
0

7,619
6,049
3,177
3,030
3,158
2,803
5,306
4,655
5,143
4,596
3,352
3,466
4,366
4,696
7,703
4,998
4,822
4,740
7,270
7,732
3,875
4,524
4,191
5,234
2,248

99
28
14
1
16
0
90
75
40
5
1
5
0
4
3
1
1
0
11
9
2
11
59
36
9

7,718
6,077
3,191
3,031
3,174
2,803
5,396
4,730
5,18a
4,601
3,353
3,471
4,366
4,700
7,706
4,999
4,823
4,740
7,281
7,741
3,877
4,535
4,250
5,270
2,257

52

118,753

520

119,273

The return of blind and deaf and dumb in the various institutions in that
city, not included in the above, is as follows: In the Blind Asylum, there
are 86 males and 75 females ; in the Deaf and Dumb Asylum, 97 males
and 88 females ; at the Almshouse, there are 45 blind and 5 deaf and
dumb.




462

Statistics o f Trade and Commerce.

[December,

STATISTICS OF TRADE AND COMMERCE.
FOREIGN WOOL TRADE OF NEW YORK,

Journal o f Commerce publishes the following statement of tbe im­
ports of foreign wool at New York for the first six months of the current
year, and also for the same time in 1862. The comparison shows the im­
ports of the first half of this year to be more than those of the same time
in 1862 by 2?,094 bales, 11,509,348 pounds, and $2,081,056 in value.
At this time last year nearly all the new clip o f domestic wool had been
bought of the growers at 35 @ 45 cents, the latter figures being the price
at that date, and foreign wools were held at prices which made them dearer
than domestic. But at this date the facts are reversed. The new clip is
nearly all held by the grower at 65 @ 75 cents, and the stock of foreign
is offered at rates which make it cheaper to the manufacturer. And as there
are few woolen fabrics which cannot be manufactured from foreign stock,
but little domestic will be taken while the present prices remain. The stock
of foreign wool in this market at the present time is considerably larger
than that of this date a year ago, and it is estimated that the domestic clip
of this year is fully twenty-five per cent larger than that of 1862 :
T he

IMPORTS OF FOREIGN WOOL AT NEW YORK DURING THE FIRST SIX
AND FOR THE SAME TIME IN 1868.

t---------F rom w hence.

N o. o f
bales.

England....................
Buenos Ayres...........
France.........................
A frica.........................
Turkey ......................
British pos. in Africa.
Chili.............................
Belgium......................
Russia.........................
Mexico........................
Brazil............................
Spain............................
Portugal.......................
Brem en......................
Hamburg ..................
Tuscany......................
Cisplatine Republic..
New Grenada...........
Dutch West Indies..
British East Indies..

15,888
4,967
8,208
1,679
54

Sardinia ....................
Gibraltar....................
Malta...........................
Cuba............................
Central America.. . .
British West Indies..
Montevideo.................
Bombay......................
T o ta l..................




-1861W e ig h t
o f pounds.

5,784,308 $1,041,135
4,384,295
617,298
3,203,806
451,636
586,361
121,497
8,228
19,285

151,908

12
469
419
207
242
293
568

974,542
.,. .
2,225
306,790
127,313
55,677
111,400
84,495
224,228

621
10

163,866
8,800

17,946
319

561
382
,,,
155
389
65
12
1

202,200
80,738

26,841
13,304

92,564
90,983
39,701
8,211
348

9,634
11,942
4,568
1,093
49

2,561

364
46,654
14,988
6,471
18,236
14,979
26,733

37,163 16,496,136 12,600,823

1862,

-1861-

N r1
Entered
value.

MONTHS OS

N o. o f
bales.

18,902
9,421
15,152
5,933
2,155
1,817
3,160
1,081
1,891
1,726
578
749
723
238
125
161
72
140
48
46
39
55
29
6
3
....
«...
....
....

W eigh t
o f pounds.

--- N
Entered
value.

7,065,474 $1,292,899
8,196,049 1,192,162
768,033
4,418,399
458,183
2,449,363
941,319
157,670
150,730
77^034
757,445
143,643
140^446
846? 14
790,198
116,251
74,202
569,148
64,268
464,813
222,274
85,817
133,386
22,219
86,340
21,437
67,099
10,292
59,785
9,620
49,659
7,759
4,855
26,911
2,725
20,231
14,746
2,67?
20,844
2,287
15?40
2^033
8,281
1,059
666
2,772
460
46
....
....
....
....
....
....

—

64,247 28,006,484

—

$481,879

1863.]

Statistics o f Trade and Commerce.
•

463

THE IRON TRADE FOR THE YEAR 1862.

D uring the year 1862, prices in irons o f all kinds were marked by a
continually upward movement. This movement had none of the feverish
excitement which characterized those o f tin and copper. It slowly fol­
lowed, indeed, the advance in gold, but it derived its chief impetus from
the progress of the demand, arising from government consumption, and
from the general revival of trade. It was, therefore, for the times, health­
ily and steadily moved forward through the season, unchecked by the
temporary events or contingencies o f the year. The restrictions to ex­
portations hither, on English account, induced by the uncertainty o f
American politics, and the fluctuations o f gold and exchange, tended
greatly to the benefit o f the American iron master, and gave him a fair
start for that race of competition with England which must ensue in fu­
ture years. These circumstances yielded to him a control o f the home
markets at a time o f immense demand, and at prices the most liberally
profitable. They secured to him an accumulation o f capital to fall back
upon in less prosperous times.
The trade o f the year was done mostly for cash; credit, indeed, was
seldom asked for. During the summer months, the Pennsylvania trade,
at a meeting, resolved thereafter to shorten the time on casli bills to ten
days, and on time bills to four months, from date o f invoices. This was
followed by similar action on the part o f the trade here, except in Scotch
pig irons, where, by the action o f the leading house in the trade, the ef­
fort was made unavailing. Scotch pig irons are, therefore, sold at six
months, or for cash.
The high prices of the past year have stimulated to the utmost the
production of all kinds of iron. Old furnaces, rolling-mills and forges
are put, or being put, into a condition for the most active operation ; new
ones are projected in various parts o f the country, and many are near
completion. The home supplies o f iron will, in the course o f a year or
so, equal any demand. With the competition of English irons they may
largely exceed the demand. , That competition cannot, with our present
tariff', be shut out, nor is it likely or desirable that any alteration in the
latter will be made. The American iron master must, therefore, look, to
insure his success, to the quality, uniformity, and evenness of size and
gauge of his iron, and, above all, to their being carefully examined before
being put in the market.

P ig Irons.— At the close of the year 1861, the surplus stocks of
foundry, and, to a considerable extent, those o f forge pig irons, were in
speculators’ hands.
The year 1862 opened with prices of No. 1, extra foundry, at 820 cash,
forge at $18 to 820 cash, and Scotch pig irons at 822 cash, with little
disposition on the part of consumers or o f the trade to buy at these fig­
ures, beyond their more immediate wants. Indeed, many were convinced
of a gradual decline in prices to the lowest points of the previous year ;
and this, notwithstanding the increasing demand, the absence of foreign
competition, and the probable inflation of the currency. These views
somewhat curtailed the spring demand for pig irons in the East, and
buyers, for the most part, bought only for the present. In the West,
however, contracts were made more freely.




464

Statistics o f Trade and Commerce.

|December,

In June, a destructive freshet occurred in Pennsylvania; it deranged
the freighting rail-roads and canals to an extent so great that “some months
elapsed before some o f them resumed their business. Some o f the furna­
ces on the Lehigh were also badly damaged. In consequence of this ac­
cident, and of the really small stocks o f pig iron, prices advanced $4 per
ton ; tha: is, to $24 for No. 1 extra. In July, August, and September,
the labor question became one of great difficulty. Miners of iron ores
and coal, attracted by the adventures of the war, or stimulated by patri­
otic feelings, freely enlisted ; and the scarcity o f all kinds of workmen
soon became apparent, not only to the employer, but also to the em­
ployed. Strikers for higher pay and for new regulations commenced, in
which the strikers were generally successful in gaining their ends. These
troubles recurred with great frequency. Efforts were made to secure the
immigration hither of European labor, which were only partially success­
ful, notwithstanding the vast inducements of a most solid and enduring
character offered the miper and the artisan in the United States; induce­
ments that, to the sober, industrious and intelligent immigrant, result
always in competence and a vastly better social condition than in his own
country.
Bar Irons,'in the early part o f January, were current at $42 cash, for
common, and $52 for refined, with moderate stocks o f English and a small
supply of American bars. These low prices, and the really promising
condition of business, failed to attract the attention of the trade till late
in February and early in March. A t tho close o f the latter month, they
had advanced to $50 and $59 for common and refined. From that time
till the close of July they were steadily held, without much fluctuation ;
then an advance to $58 and $68 occurred. In October, prices reached
$67 and $77 cash, at which they were steady till the close of the year.
The supplies o f American bar and rail-road irons will be greatly enhanced
during the next few years. Like that o f pig irons, the production has
been stimulated by high prices, and mills have been started in various
parts of Pennsylvania, and in New York and New Jersey. Their make,
when the rolls are all in motion, will, with the older mills, be nearly ade­
quate to supply the whole demand of our Eastern markets. The cheap­
ness of producers’ costs— because of proper location, contiguous to coal
and ore beds, and the markets of New York and the Eastern and Western
cities— may enable them to compete successfully with the English irons,
and perhaps, indeed, to a large extent, drive them out of our markets.
Charcoal Irons, in January, opened at $25 to $35. Influenced by the
same causes as acted on other irons, prices advanced gradually, and in
December closed with inadequate supplies, and prices ranging from $35
to $65 per ton.
Bloom Irons.— Northern and Lake Champlain blooms are the mer­
chantable blooms o f the market. In January, holders were at $35 cash,
per ton, with few buyers. Later in the season, the plate mills filled with
orders from government, and general trade came into the market largely
for blooms, the prices of which rapidly advanced to $70 and $75, with
transactions at these prices.




1863.]

465

Statistics o f Trade and Commerce-.

IM P O R T S

INTO

NEW

YORK

FROM

JA N U AR Y

1 S T , TO D E C E M B E R

1860 .
P ig iron.............................................. tons
Bar iron and rails.................................
Bundle iron, as hoop, sheet, band and
small bariron.......................... bundles
Plates (tinned and leaded),.........boxes
P R IC E S

A T THE

CO M M EN CE M E N T
R ate o f gold.

January.............
February...........
M arch...............
A pril........... .... .
M ay....................
June..................
Julv....................
August...............
September . . . .
October.............
.November.........
December......... . .

102
103]101]
lO lf
102f
103]110
114]
116]
122]
131]
132

$22
22
22
23
23
23
24
26
26
31
32
33

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

1862.

43,043
42,117

31,457
16,651

13.403
24,003

902,188
589,263

255,606
257,390

437,540
489,014

OF E A C H
S co tch
nig iron.
P e r ton.

1861.

S lS T .

M ON TH

O F TH E

YEAR

A m erican
C om m on
N o. 1 ex. pig iron. bar iron.
P er ton.
P e r ton.

$20
20
21
.2 0
20
20
23
24
24
30
31
32

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

$42
45
50
50
50
50
50
59
58
67
67
67

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

1862.
B est
bar iron.
P e r ton.

$52
54
59
59
59
60
60
68
67
77
77
77

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

A V E R A G E Y E A R L Y P R IC E O F F O U N D R Y P I G IR O N S IN N E W Y O R K , D U R IN G TH E
E IG H T E E N Y E A R S , E N D IN G W IT H
P e r ton. 1

1845.........
1846.........
1847.........
1848.........
1849.........
1850.........

1862.
P e r ton

P e r ton.

$34
33
30
23

25 1851.........
50 1852.........
25 1 853.........
25 1854.........
21 0 0
1855.........
19 50 1856.........

$19
23
32
36
29
29

25
75
00
5 '
25
'50

1857
1858
1859
1860
1861
1862

In 1861, the lowest price of No. 1 was $16 per ton.
est price was $2 0 ; the highest, $32.

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

$29
23
23
21
18
23

00
00
25
50
96
87

In 1862, the low-

TRADE OF CALIFORNIA.

The circular of J. T. C oleman & Co., received by the Northern Light,
contains a summary of the trade of San Francisco for the six months
ending June 30, 1863. The exports, as compared with the corresponding months of previous years, were as follow s:
To

New York and Boston.
England.........................
M exico...........................
P eru...............................
Sandwich Islands.........
China.............................
Australia........................




1861.
$939,521
4,658,295
576,388
38,718
103,588
295,024
253,462

70
33
55
80
02
60
40

1862.
$1,450,820
377,967
371,795
141,115
130,806
304,730
93,696

99
99
94
87
42
60
18

1861.
$1,548,698
719,697
1,034.742
99,663
166,444
646,935
181,988

01
15
06
29
49
64
58

466

Statistics o f Trade and Commerce.

To

1861.

[December,

1861

V ictoria................................ 657,810 49
Japan.............................
5,486 50
Other countries...........
490,455 62
Total........................ $4,947,956 71

1.868.

1,172,447 87
4,578 00
494,768 61

931,064 30
18,621 16
834,608 84

$4,542,728 61

$6,183,454 52

O f these exports our breadstuff's form a leading item, amounting to
about one-fourth the entire sum.
The exports of merchandise and treasure compared were:
Merchandise exports..
Treasure
“ ...

$4,947,957
1-8,566,143

$4,542,728
16,832,618

$6,184,454 52
22,757,681 00

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

$23,514,100

$21,375,344

$28,941,135 52

A very important change in the drift o f our treasure exports has been
in progress this year, occasioned chiefly by our currency derangements in
the Atlantic States, but in part by the danger apprehended under our
own flag from rebel privateers. This change is exhibited in the follow­
ing statement:
D E ST IN A T IO N

O F TREASU RE

EXPORTED

F IR S T

H ALF

1860.

FR O M

SAN

F R A N C IS C O

D U R IN G

TH E

O F TH E TE A R S

1861.

1861

1868 .

New York.............
England................
China....................
Panam a...............
Other countries.. .

$17,071,387 $15,916,290 $11,290,851 $15,650,976
1,280,404
1,103,948
4,216,841 15,008,427
2,213,241
1,343,247
1,007,272
1,603,659
163,533
187,514
232,007
305,380
257,480
15,144
85,645
190,083

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

$21,886,045 $18,566,143 $16,832,616 $22,757,680

The large diversion from New York to England is the point of special
interest.
The receipts o f treasure from various sources during the six months
were:
From California and N e v a d a ..............................................
$22,425,506
From Coastwise ports North and South.............................
1,716,664
From foreign countries, including amount received from
the wreck of the Golden Gate........................................
1,500,848
Total receipts.................................................................

$25,648,018

The following figures serve to show the extent o f the interior currency
movement during the first half of the last three years :

186!.

1868 .

Coin remitted to interior.. . .
Coin received from in terior..

$6,665,451
2,749,236

1861.

$5,775,983
2,230,427

$9,012,610
3,101,396

Balance added to interior cir­
culation in first half of each
of those years......................

$3,324,215

$3,545,556

$2,918,214




1863.]

467

Statistics of Agriculture.

STATISTICS

OF

AGRICULTURE.

LOUISVILLE ANNUAL TOBACCO STATEMENT — CROPS IN KENTUCKY AND MIS­
SOURI FOR 1863.

♦

L ouisville , K y .— A late number of the Louisville Journal has in it a

review of the tobacco business at Louisville for the season 1862-63, which
closed October 31st. The sales of the past season amounted to thirty-six
thousand seven hundred and twelve hogsheads, distributed among the dif­
ferent warehouses as follows:
Pickett warehouse................................................ hhds.
Boone warehouse...........................................................
Ninth-street warehouse..................................................
Louisville warehouse, (in eight months)...................

16,073
8,766
7,683
4,190

Total number hogsheads sold.............................
The receipts of the past year were as follows :
Pickettt warehouse................................................hhds.
Boone warehouse...........................................................
Ninth-street warehouse................................................
Louisville warehouse.....................................................

36,712
16,448
8,966
7,858
4,390

Total hogsheads received.....................................
37,662
Deducting the sales from the receipts gives nine hundred and fifty hogs­
heads as the amount now in warehouse unsold, distributed as follows:
Pickett warehouse...................................................... hhds.
375
Boone warehouse..................................................................
200
Ninth-street warehouse.....................................................
175
Louisville warehouse . ! .....................................................
200
Total.............................................................................

950

As compared with the receipts and sales for the season of 1861-62, the
excess for 1862-63 is eight thousand seven hundred and fifty-four hogs­
heads, as follows:
Hogsheads received.............................. -..
Hogsheads sold..........................................

1116 1-6 1

1 8 6 2 -6 1

28,908
28,270

37,662
'36,712

The amount of the sales of the season of 1861-62 was distributed as
follows: Pickett warehouse, 14,360 hhds.; Ninth-street warehouse, 7,862
hhds.; Boone warehouse, 6,685 hhds.
During the season just closed, prices have ruled unprecedentedly high,
and the planters have realized more money for their crops than in any pre­
vious season for ten years. Quotations have ranged aoout as follows:
Lugs........
Medium..

$10 00 @ $ 1 3 00 I G ood ___
14 00 @ 18 00 |F in e ___

$20 00 @ $30 00
30 00 @ 36 00

The crop of last year was a very heavy one, but that of the present year,
classing in all the grades, will be much larger. There will, however, be a
decided falling off in the amount of strictly fine tobacco, a great deal o f the




468

Statistics o f Agriculture.

[December.

crop in the counties o f Eastern and Central Kentucky, being badly injured
by frost. In the Southern and Southwestern portions of the State, as we
learn from reliable authority, the damage by frost was not as serious, and
the product will be a full average as compared with last year’s crop. In
the counties of Christian, Todd, Trigg, Caldwell, Lyon, Logan, Muhlenburg,
Marshall, Graves, and Calloway, and in the tobacco-growing counties o f
Tennessee, the frost did but slight damage, and the crop will be heavy.
The increase in the tobacco trade of Louisville during the past three years
has been truly wonderful. From statistics in our possession, we learn that
the sales in this city for the season of 1 8 6 2 - 6 3 were but fifteen hundred
hogsheads less than the total sale at either Liverpool or London, the great
importing cities of the world in this staple. To day Louisville ranks as the
chief tobacco market of the United States, and her next annual tobacco
statement will show that she is entitled to rank as the principal tobacco­
shipping and selling market of the world. This vast business has been es­
tablished and is being increased by the enterprise and energy o f her dealers
— the warehousemen and manufacturers.
In manufactured tobacco, this city also ranks as one of the principal
manufacturing points in the Union. The manufacturing business has been
fully doubled in the past twelve months, and the brands turned out here
rank among the very best in the country. The coming year will witness
large accessions not only to the manufacturing, but to the shipping and
sales of Louisville in the great staple which has superseded King Cotton as
the chief foreign marketable product of the country.
M issouri.-—-A correspondent o f the Missouri Republican, under date of
November 12th, in speaking of the tobacco crop in that region, says:
“ Much inquiry and observation have convinced the writer, that the damage by frost is partial and not general, and confined almost entirely to dis­
tricts of country north o f the usual tobacco-growing region ; for it must be
borne in mind, that high prices for the last two years have stimulated the
production of tobacco some three hundred miles north of the usual tobacco
region before the war. The Great West has never cultivated tobacco as an
export staple north o f the Ohio river, except in Missouri. W e now find
tobacco extensively cultivated in Iowa, Illinois, Indiana, Ohio, and partially
in all of the Northwest, embracing an area of country twice as large as the
old region which embraced Missouri, Kentucky, the southern portion of
Tennessee, Virginia, North Carolina, and Maryland.
“ Future statistics will show that the Missouri crop of 1 8 6 3 is decidedly
the largest that the State has ever grown, and though much of it is in the
hands of new beginners, and will prove of low quality, for want o f full ma­
turity, still the large bulk of the Missouri leaf is of fair quality and has been
housed in good time and condition, and comparatively not injured by frost.”

TO THE GROWERS AND MANUFACTURERS OF FLAX AND HEMP.

The following notice has been issued in circular form and widely circu­
lated by the Agricultural Department of Washington, addressed to the
growers and manufacturers of flax and hemp :
W

D e p a r t m e n t of A g ricu ltu re , )
D. C., Sept. 5, 1 8 6 3 .
j

a s h in g t o n ,

Congress having, at its last session, placed in the hands of the Commis­




1862.]

469

Statistics o f Agriculture.

sioner of Agriculture an appropriation of $20,000 “ for investigations to
test the practicability of cultivating and preparing flax and hemp, as a
substitute for cotton,” the Commissioner, after consultation with mem­
bers of Congress and manufacturers, determined to place the whole matter
in the hands of three commissioners, and accordingly appointed Hon. J. K.
M o r e h e a d , of Pittsburg, Pa., J ohn A. W a r d e r , of Cincinnati, Ohio, and
W m. M. B a il e y , of Providence, R. I. The commissioners met at the De­
partment on Thursday, Sep. 3, 1863, chose Hon. J. K. M o r e h e a d chair­
man, appointed 0 . A. S t a f f o r d , of the Department, their clerk, and passed
the following resolution :
Resovled, That the Commissioner of Agriculture be requested to call upon
manufacturers and experimenters to send to this Department, on or before the
20th day of November, samples of the fibers and fabrics prepared by them, to
be accompanied, in all cases, by precise statements as to the various processes,
and with estimates as to the probable expense per pound of the preparation of
the material, and of the proportion of fiber that may be produced from a given
quantity of the stalks or straw of flax and hemp.
All packages of specimens or samples, and all letters on this subject,
should be addressed to the Commissioner of Agriculture, with the indorse­
ment “ For Commissioners o f Flax Culture.”
I s a a c N ew to n , Commissioner.
FALL CROPS OF 1863,

In the monthly report of the Department of Agriculture for September
and October, the amount of the crops of 1863 were given.
ESTIM ATES F O R SE PTE M BE R.

Corn.

Buckwheat.

Potatoes.

Tobacco.

449,163,894

17,193,232

97,870,035

258,462,413

Corn.

Buckwheat.

452,446,128

15,821,305

ESTIM ATES F O R O C T O B E R .

Potatoes.

101,457,144

Tobacco.

267,302,770

These estimates exhibit a remarkably close approximation, and speak well
for the system adopted by the department to ascertain the amounts, annu­
ally, of the leading commercial crops.
The amount of the crops of 1862 are as follows :
Corn.

586,704,474

Buckwheat

18,722,998

Potatoes.

Tobaccc.

114,533,118

208,807,078

The five principal States of the West for the production o f sorghum mo­
lasses, are Missouri, Iowa, Illinois, Indiana, and Ohio. Their estimated pro­
duction last year was 10,203,728 gallons ; this year only 6,970,882 gallons
— a decrease of nearly three and a-quarter millions of gallons. The amount
of ground planted was much greater than in 1862, but the frost destroyed
the yield.
The wheat, rye, and barley crops just sown are full average crops, both
in amount and appearance. The fall weather has been highly favorable to
them, and the correspondents of the Department speak most encouragingly.
The number of hogs in the great feeding States of Ohio, Michigan, In­
diana, and Illinois, is one-fifth less than last year, causing a reduction in the
number fattened in these States of 806,139. Their condition in these States
is still lower.




470

Journal o f Mining, Manufactures, and A rt.

[December,

JOURNAL OF MINING, MANUFACTURES, AND ART.
CALIFORNIA DISCOVERIES OF GOLD, SILVER, Al\D COPPER.
F rom California, in the first half of this year, 4,000 tons of copper ore

were shipped from San Francisco, most of it going to the smelting works at
Boston ; and for the entire year the shipments will probably bqten thousand
tons. Hereafter, much will go to the smelting works near New York. The
ore averaged about twenty per cent. Prospects are considered very hope­
ful. The Alta California says :
“ There is reason to hope that California will, at no distant day, be the
first copper-producing country of the world. Cupriferous ore has been
found in nearly every county, and rich lodes have been opened at both ends
of the State and in its centre. The value of the copper mine and the char­
acter of the ore and vein can only be ascertained by examination at a con­
siderable distance below the surface; and the prospecters have not had
either the time or the money to make such examinations of most of the
lodes. It is well known that a large proportion of the deposits of copper
are not true veins, and that only a small share of the true veins will pay.
It would not, therefore, be strange if nine out of ten, perhaps ninetynine out of a hundred, of the copper veins in the State would prove worth­
less ; but the remainder will do wonders.”
The San Francisco Mercantile Gazette, in speaking generally of the
mining interests, says that “ in gold, silver, and copper, the discovery of
new mines, and ‘ rich strikes’ in old ones, form the staple news of the inte­
rior press. The metalic veins seem to be scattered everywhere— almost every
part of the State and coast showing indications of mineral products ; though
a large portion have, thus far, proved unremunerative. The most striking
feature in this department, during the quarter of the year just closed, has
been the extraordinary discoveries in the Reese River District of Nevada
Territory. The great number and richness o f the lodes of silver ore ; the
peculiar character of that ore ; its chemical combinations and great docili­
ty, are themes of universal remark, and have created quite a furore of em ­
igration to the favored locality7, which is already becoming populous. Large
and busy towns are rising as by magic in its rugged canons, and the noise
of mills and steam-engines reverberates among its mountains. W e cannot
believe all that we hear from that region, but enough is authenticated to
satisfy us of its great wealth.
“ An important movement also has been going on during the past three
months in the direction of the Colorado. Reported rich discoveries in Ar­
izona Territory have attracted much attention. W e are told of placer dig­
gings, where chunks o f gold are picked from the crevices of the rocks and
the dry aroyos of the desert. Many of these stories are doubtless fabulous ;
but we have seen rich ores from that region, and are assured by reliable
men that they exist in abundance, and that capital and labor only are want­
ed to give Arizona a very high position among the gold and silver produc­
ing countries. If we mistake not, however, a very serious, if not insur­
mountable, obstacle to the prosperity of that Territory is the want of water.
It is arid in the extreme, and possesses few attractions as a dwelling place
for civilization.”




1863.]

Journal o f Miriing, Manufactures, and A rt.

471

The explorations of Mr. A u bry in Arizona (a gentleman who was early
identified with the history o f California and New Mexico), and the recent
official report of Gen. C l a r k , have served to establish several important
facts and conclusions, the most notable of which is, that near the line of
the 34th parallel.of North latitude and West of the 110th degree of longi­
tude are gold fields of great value, and that within a few years they will
be adding millions annually to the general wealth of the country. The
Santa F e Gazette is much elated with the mining prospects o f this region,
now that there is less danger from the excursions of hostile Indians, yet, to
guard against too sanguine anticipations, says :
“ Doubtless the reports which will go out in reference to the productive­
ness of these mines will induce many to try their fortunes among them.
Indeed, at the last accounts we had from there, there were already about
fifteen hundred persons at the mines, and more going. But it should be
remembered that all who have any desire to emigrate thither that it is one
of the most inhospitable regions of country, excepting the 'climate, that is
to be found on the continent. It produces comparatively none o f the
necessaries of life. It cannot be made to support a large population. All
supplies will have to be transported from New Mexico or California.”

COPPER MINIM PROSPECTS IN CANADA.

W e obsefve says the Montreal Commercial of Nov. 3d, that no fewer than
fifteen mining charters have been granted during the last session of Parlia­
ment, and chiefly for copper mines in the eastern townships ; and we know
of many other highly promising mines, the proprietors of which have not
yet applied for acts of incorpora ion, such as the South Ham Antimony
Mine, the St. Francois Copper Mine, and-several valuable locations in Broom
and North Sutton. W e have been favored by a friend who has recently
visited this last-mentioned district with some particulars as to the prospects
of copper mining there, and we are pleased to find that they are of a highly
encouraging nature. Two American companies are now working vigorously
on mines about three or four miles apart, and have sunk shafts to the depth
of upwards of twelve fathoms, and at various points intermediate the North
Sutton and Broom Mining Companies have instituted extensive exploring
operations with results equally and even more encouraging. The copper
here is, for the most part, disseminated in thick beds o f slate, in such a
manner as to leave no doubt o f its having been formed and deposited sim­
ultaneously with the earthy matter of the slate.
The peculiar value and importance of this form of cupriferous deposits,
occurring as they do here in sufficient proportion to constitute a workable
ore, consists in the fact that, unlike most metallic veins, they can be de­
pended on for regularity and persistence, bofh in depth and over great areas
of country. In such circumstances copper mining is divested of much of
the risk usually attendant upon it, as the results can be estimated with con­
siderable certainty before hand. Notwithstanding the comparative poverty
of the ore generally throughout the Sutton district, it has been proved capa­
ble ot yielding a higher metallic value of produce in proportion to the quan­
tity of rock mined than the average at the Acton mine, while for regularity
and persistence of yield the advantage is altogether on the side of the
ormer.




472

Journal o f Mining, Manufactures, and A rt.

[December,

The distance from a railway or other port of shipment is undoubtedly a
difficulty under which the mining adventurers in Sutton and Broom labor;
but as an ample set-off against this disadvantage are to be reckoned the
low rate for wages, the cheapness of provisions, both of which are in a great
measure attributable to this circumstance. We understand that it is the
intention of the North Sutton Company to erect smelting works in the
neighborhood o f these mines, for which purpose provision is made in their
charter. By this means, and at a very trifling expense, the ores, which flux
very easily, will be reduced to a regulus of a high percentage, and much o f
the cost of dressing and transportation to the market will be saved.

THE CHAUDIERE GOLD MINES.

The Quebec Mercury says that persons who have just returned from the
Chaudiere Gold Mines state that the speculative fever continues to spread
in that locality. It is stated that a systematic attempt is in progress to
persuade all visitors that the mines are auriferous, with a view to the fur­
therance of speculative schemes ; and that representations are made by in­
terested parties which independent scrutiny show to be gross exaggeration.
Those who have taken trouble to watch the operations of raining, and to
collate facts as to the bona fide yield, appear to arrive at a conclusion for
which the official report of Mr. J u d a h must have prepared the public mind.
It is that, though gold is obtainable, the average productiveness is by no
means large— certainly not sufficiently large to justify a wild rush to the
mines, or the investment of heavy sums in the acquisition of mining privi­
leges. The action of the Crown Lands Department is looked forward to
with much interest, not unmixed with anxiety, as upon it to a large extent
depends the healthy development o f the Chaudiere District. The experi­
ence of Australia shows the necessity of extreme caution in the organization
of any licensing system ; whilst the testimony of the United States author­
ities is averse to the throwing open of gold-producing lands without exact­
ing from them some substantial tribute to the State. The old tax in the
form of royalty is susceptible of many objections, though perhaps the pre­
cious metals would form a reasonable exception to the rule against royal­
ties, in cases where large tracts of land are bought in fee for speculative
purposes. The public interest undoubtedly points to the discouragement of
such sales, and the encouragement, by a liberal system of licenses, of a
working population. So far as the most widely known portion of the Chau­
diere region is concerned, we apprehend that the first point to be deter­
mined is the validity or the non-validity of the D e L ery patent, which we
believe covers all, or nearly all, of the mines now worked. This disposed
of, the duty of the Government will be to render available, by license, all
adjacent auriferous lands yet possessed by the Crown, as well as lands which
may have passed into private hands with the usual reservation of the rights
o f the Crown in respect to gold and silver.

LAKE SUPERIOR SILVER LEAD DISCOVERY.

The Houghton Gazette says that the excitement consequent upon the
first report that silver lead had been discovered in the vicinage of Marquette
has assumed the phase of reality. Specimens of the ore have been brought




1863.]

Journal o f Mining, Manufactures, and Art.

473

in by two or three persons, and an analysis made which proves beyond
doubt that they are unusually rich in silver. The lowest return from the
assays was an average of about eight pounds of silver to the ton of lead.
The highest was twenty-five pounds. These are extraordinary yields, and
the only question remaining to be solved is, whether the veins containing
the ore are of sufficient size to warrant mining. Both of the gentlemen
who made the explorations and obtained the specimens, aver tliat.the veins
are o f greater width and length than is necessary for remunerative mining ;
in fact, they give a width which would be double that often found and
opened to a profit. The location of these deposits is around a small lake,
in the Northwest quarter o f Town 49 Range 28 West. The formation is
granite, and has long been considered metalliferous. The veins are either
fissure or gash, though most probably the former, as the explorers state that
they have traced them for a considerable distance, and find they have a
regular course between North and East.
There are now four companies organized on the land entered in the vicin­
ity of the lake, now called Silver Lake, two of which are organized under
the laws of the State. As to the value of these lands, but lit le is really
knowm beyond the fact that the* Eldorado was located by Mr. M artin , the
explorer, and a large share of the stock is held by him and his friends,
which is presumptive evidence that it is the best he has seen. The silver
lead was also entered by Mr. S mith , the explorer, who is largely interested
in it. The Silver Lake embraces eight or ten quarter sections scattered
around the lake, and, when the country is explored, can hardly fail to be
equally rich with the rest. Some fine specimens have been brought in
from these lands.
SILVER MUSING IN MEXICO.

W e quote from the Alta California the notice below as an evidence of
the faith in Mexican mines, held by San Francisco capitalists. The mines
owned by the Refugio Company are said, upon abundant evidence, to be
v.ery rich and easily worked.
A large amount has been expended for
machinery, now on its way by the Mexican steamer from San Francisco,
sufficient to work the mines on a large scale. The owners anticipate re­
turns only equaled by those o f G ould & C urry , and Ophir of Washoe,
but produced with far less expense, on account of the cheapness of labor,
provisions, etc., in Mexico— less than a third of the cost in Washoe or
California.
S ylvester M o w r y , W . R. G arrison , D onald D avidson , C. A. E ast ­
m a n , E. P in n ix , and J oseph B lock have incorporated under the follow­
ing title :

Refugio Mining Company.— Location, Jesus Maria District, Chihuahua,
Mexico. Capital stock, $206,700, in 4,134 shares, of $50 per share.
Trustees: W . R. G arrison , D onald D avidson , C. A . E astman , E. P i n ­
n i x , and J oseph B lock .
W e give below an authorized statement of the product of the New
Almaden Quicksilver Mines, from January 1st, 1855, to July 1st, 1863.
A t the present price of quicksilver, 60 cents per pound, the yield o f the
mines annually amounts to upward of a million and a-half of dollars, or
in exact figures, $1,579,348 80 per annum.
V O L . X L I X .-----N O . V I .
31




474

Journal o f Mining, Manufactures, and A r t.
P R O D U C T IO N O F TH E N E W A L M A D E N M IN E , U P TO JU L Y

1855,
1856,
1857,
1858,

12
12
12
10

months................................................
months................................................
months...............
months...........................................

Totai 46 months................................................

[December,
1, 1863.

31,860 flasks.
28,123
“
26,000
“
39,939
“
125,922

“

(The mine was closed by an injunction, issued by the United States
Circuit Court, during the years 1859 and 1862.) Produced :
1861, 11 months...............................................
1862, 12 months...............................................
1863, 6 months...............................................

34,765 flasks.
39,671
“
19,000
“

Total 29 months................................................

93,436

“

Production to .July 1st, 75 months, 16,451,550 lbs.
•

.

The steamer Oregon took down among other freight for Arizona, via
Guaymas, a small steam engine and other machinery, besides an invoice
o f goods, for the purpose o f developing the San Antonio Silver Mine, sit­
uated in the Santa Cruz Mountains, Arizona, six miles from the Mowry
Silver Mines. The San Antonio Mine has been purchased by a few gen­
tlemen, and is not incorporated. W orking tests of the ore in quantity,
by the ordinary Mexican blast furnace and vase, give about $200 per ton
in silver, with a large percentage of lead. The character of the ores of
the San Antonio is similar to those of the Mowry Mines, and can be
worked by the simple process o f smelting and refining. Among the pur­
chasers of the San Antonio, we note the names o f'S . P. B utterworth ,
C. A. E astman , C has . K. S mith , E. L. G ould, J oseph B lack , and S yl ­
vester

M ow ry.

IRISH EMIGRATION.
T he large and continuous emigration from Ireland to the United States
is naturally attracting a considerable share of attention. Week by week,
and month by month, the people leave for New York, some in returning
grain ships, some in steamers, some in stow-aways, as fast as opportunity
serves. The London Times says, too, that it is the best portion of the
Irish -population —the young, the hale, the hopeful, the energetic— and that
nothing will stop them. The strongest influences are weak and ineffectual
before the all engrossing thought o f America.
In this connection, the great decrease in the population o f Ireland which
the census returns just issued show, is of interest. For instance, in the
Province of Connaught there were 1,418,782 inhabitants in 1841 f in 1851
there were 1,012,006 ; and in 1861 there were but 913,125. The same
return contains a summary for the whole of Ireland. It shows that in 1841
the inhabitants numbered 8,174,031; in 1851 they numbered 6,553,579;
and in 1861, but 5,798,967. This gives a decrease o f nearly two and a
half millions of people in twenty years.




1863.]

Commercial Regulations.

COMMERCIAL

47ft

REGULATIONS.

DECISIONS OF TREASURY DEPARTMENT UNDER THE TARIFF ACT OF JULY

14, 1863.
T he following decisions have been made by the Secretary o f the Treas­
ury, of questions arising upon appeals by importers from the decisions of
collectors, relating to the proper classification, under the tariff act of July
14, 1862, of certain articles of foreign manufacture and production en­
tered at the port of New York : .
•
M ETAL

C L IP P IN G S .

Treasury Department, July 18, 1863.
S ir : Messrs. L. B randies & Co. have appealed from your decision as­
sessing duty at the rate o f 20 per cent ad valorem on certain “ metal
clippings,” and claim “ the article to be old brass, and fit only to b,e re­
manufactured, which is provided for in schedule 4 of the tariff of July
14, 1862, consequently paying only 15 per cent duty ad valorem.”
The question is one o f fact to be decided by the appraisers. They de­
clare the article to be “ Dutch metal clippings,” which, by the decision
of June 25, 1859, was classified as non-enumerated ; subsequent tariff
acts do not specially provide for it, and therefore it is subject, under the
24th section o f the act of March, 1861, to a duty at the rate of 20 per
cent.
Your decision is hereby affirmed.
S. P . C h ase , Sec. o f the Treasury.
H iram B ar n et , Esq., Collector, New York.
IM IT A T IO N

JE W E LR Y.

Treasury Department, July 28, 1863.
S i r : Messrs. I. R osenthal & Co. represent that a certain importation

made by them was classified by you a3 manufactures of brass, and assessed
a duty of 35 per cent ad valorem, from which they appeal, claiming to
enter the articles as jewelry at 25 per cent ad valorem.
The appraisers admit the article in question to be an imitation of jew ­
elry, alleging however, that being an imitation, it is not entitled to entry
at 25 per cent ad valorem, as claimed, but being composed o f brass or
composition metal, as its chief value, must be classified as manufactures
of brass, and subject to a duty o f 35 per cent ad valorem, under the acts
of March, 1861, and July, 1862.
Section 21 of the act o f March, 1861, provides that diamonds, cameos,
mosaics, gems, pearls, rubies, arid other precious stones, when set in gold,
silver, or other metal, or on imitations thereof, and all other jewelry, shall
be subject to a duty o f twenty-five per cent ad valorem.




476

Commercial Regulations.

[Desember,

The article is imitation or mock jewelry, and in my opinion is entitled
to entry at the rate o f 25 per cent.
G eo . H arrington , Acting Sec. o f the Treasury.
H iram B arn et , Esq., Collector, New York.
CRU DE M USK.

Treasury Department, July 29, 1863.
S i r : Mr. J. H. D ulles , Jr., lias appealed from your decision assessing

duty at the rate o f t o per cent ad valorem, under the fifth section o f the
act of July 14, 1862, on certain “ crude musk” imported from Liverpool,
and claims to enter the article in question as a drug at 20 per cent, under
section 20 of the act o f March 2, 1861, which imposes that rate o f duty
on “ medicinal roots and leaves, and all other drujrs and medicines in a
crude state not otherwise provided for.”
“ That it is a drug,” the appellant asserts, “ is abundantly proved by its
appearing in the several Materia Medica and Pharmacopceie in use in this
country, and is particularly described in W ood & B aciie ’ s United States
Dispensatory, a work of high medical and chemical reputation.”
The claim o f the importer appears to be well founded. Musk is a drug,
and if imported in a crude state is entitled to entry at 20 per cent ad
valorem, under section 20 of the act o f March 2, 1861.
It is admitted that the article in question is musk, and imported in a
crude state; it follows, therefore, that the proper rate o f duty i3 20 per
cent, and you will be governed accordingly.
The 10 percent exacted under section 14 of the act of July 14, 1862,
does not appear to be questioned.
G eo . H arrington , Acting Sec. o f the Treasury.
H iram B ar n et , Esq,, Collector, New York.
STEEL B A R S , S L IG H T L T T A P E R E D .

Treasury Department, September 17, 1863.
S ir : On certain “ round bar steel or bars slightly tapered ” imported
by Messrs. C ollins & Co., per ships “ Kangaroo,” “ City of Manchester,”

and “ Guy Mannering,” you assessed duty at,the rate o f 35 per cent, un­
der the proviso in the steel clause of section 7 of the act of March 2,
1861, viz: “ All articles partially manufactured, not otherwise provided
for, shall pay the same rate of duty as if wholly manufactured.”
The appellants allege, and such appears to be the fact, that to forge
the bars in this form no additional work is required, nor is the octet in­
creased thereby. They are drawn tapering through the rollers in the
same way as bars of equal dimensions throughout, and are sold at same
price per pound as any round or square steel.
That the steel in question is not a gun-barrel partially manufactured
is apparent from the facts, that steel in this form may be as well applied
to the manufacture o f other articles as to gun barrels, and is forged in
this form as readily, and without additional cost, as a square or round bar.
Nor can it be regarded as a “ bar,” as that term is used in the tariff.
The “ bar,” as described in the tariff, is square, round, or any other sim­
ple form of uniform dimensions throughout.
In my opinion the •article in question falls more properly within the




1863.]

Commercial Regulations.

477

provisions of the 3d section of the tariff act of July 14, 1862, for “ steel
in any form not otherwise provided for,” and should be subjected to duty
at the rate of 25 per cent ad valorem, imposed on articles in that classi­
fication.
S. P. C h ase , Sec. o f the Treasury.
H iram B a r n e t , Esq., Collector, New York.
M ELADO.

Treasury Department, Septenfoer 5, 1863.
Si r : Mr. H ophni E aton has appealed from your decision assessing
duty at the rate of 2 cents per pound on a certain importation o f seven
hogsheads o f “ melado," so described in the invoice, but which the appel­
lant alleges were “ black and dirty molases, and tank bottoms,” and claims
“ the right to enter the same as molasses at six cents per gallon ; threequarters o f the same being molasses of a very inferioj quality, and the
other quarter dirty sugar, commonly called “ tank bottoms.”
The question presented is one of fact, to he determined by the appraisers.
After a careful examination the article has been pronounced to be me­
lado, and the proper duty being 2 cents per pound, as assessed by you,
I hereby affirm your decision.
S. P. C hase , Sec. o f the Treasury.
J ed . J ew ett , Esq., Collector, Portland, Me.
S H E A T H IN G

M ET AL.

Treasury Department, September 15, 1863.
S i r : Mr. W . n . P erot has appealed from your decision assessing duty
on certain “ sheathing metal” imported per British brig “ Chesapeake,”
“ intended to be used in sheathing the bottom of said brig, and no portion
of which is intended to be landed or used for any other purpose.”
Mr. W . H. P erot claims to have the amount o f duty refunded.
There is no provision of existing laws extending exemption from duty
to sheathing metal imported under the circumstances, as alleged by the
appellant, and the remission o f duties asked for cannot therefore be legal­
ly granted.
S. P. C hase , Sec. o f the Treasury.
H enry W . H o ffm an , Esq., Collector, Baltimore.
*
EM PTY

CARBOY.

Treasury Department, September 16, 1863.
S i r : Mr. D. D. W alker has appealed from your decision assessing
duty at the rate of 35 per cent, as manufactures o f glass, on certain “ emp­
ty carboys ” from Canada, and claims they are exempt from duty, being
of “ American manufacture, and were exported to Canada containing sul­
phuric acid, and are now imported empty, and have never become part of
the common stock and merchandise o f Canada, but are merely sent with
the contents of domestic produce of this country.”
It has been held by this Department that any article which has been
exported filled, if returned to the United States empty, is not in the
“ same condition ” as when exported, as provided for by the act o f March
2, 1861.
The decision of the collector is therefore affirmed.
S. P. C h ase , Sec. o f the Treasury.
T homas W ilkins , Esq., Collector, Brie, Penn.




Commercial Regulations.

478

[December,

T he following copy of a letter addressed by the Secretary o f the Treasury
to the Collector of Baltimore, in cases where the Collector’s triplicate of in­
voice, from neglect or otherwise, fails to be received from the Consul at the
time the.consignee, importer, or agent presents his triplicate of invoice, and
makes application to enter the goods, wares, or merchandise therein enu­
merated :
Treasury Department, October 19, 1863.
S ir : Messrs. A lberti & Co., of Baltimore, have asked to be informed if
they are required to give a bond to produce to you the triplicate of invoice,
which it is the duty o f the Consul to send to you, and which he neglects to
send.
No such bond can be required of consignees, importers, or agents; but,
before goods can be obtained from the Custom-House, in such cases, the
consignee, importer, or agent is to be required to give a bond to the Col­
lector for the paymgnt of any additional duty to which it shall appear by
Collector’s triplicate of invoice the said goods are subject over and above
the amount of duties paid upon the consignee’s, importer’s, or agent’s trip­
licate of invoice, which triplicate must be filed with the bond so given to
the Collector, who shall retain the same until he shall have received from
the Consul the triplicate of invoice required for his files and the completion
of the entry. This done, the bond will be canceled, and the retained in­
voice be given up.
With great respect,
S. P. C h ase , Secretary o f the Treasury.
To H enry W . H offm an , Collector, Baltimore, Md.

DIRECT STEAM COMMUNICATION WITH THE WEST INDIA ISLANDS.
T he departure o f the Tubal Cain, Saturday, September 12th, for Ber­

muda, St. Thomas, &c., initiates an enterpise o f the first consequence in
its influence upon the commerce of New York. It supplies, as the Jour­
nal of Commerce well says, a desideratum long and urgently felt in afford­
ing direct communication by steam with St. Thomas, the great center of
traffic— the distributing reservoir, so to speak, for mail matter destined
f&r the West Indies and South America. The Tubal Cain took out a
large mail, and was offered freight far beyond her capacity, besides hav­
ing a good passenger list. This is a hopeful beginning.
The Tubal Cain was originally a blockade runner, but made one trip
too many for the interests other late owners, and fell into the clutches o f
Uncle Sam. She was then purchased from the government by the Amer­
ican West India Company, which has large landed interests in San D o ­
mingo, and having secured an advantageous contract for carrying the
United States mails, has promise o f a career of prosperity. She proceed­
ed down the bay under steam with a number of invited guests on board,
and was met near Sandy Hook by a steam revenue cutter with Mr. A n ­
drews , the Surveyor of the Port, on board, specially detailed for this
service through the courtesy o f the Secretary of the Treasury. It is need­
less to say the trip was highly enjoyed. The collation given affordetl an
opportunity for speeches relating to the promised development of com­
mercial interests through the agency of this new steam line, which was
well improved.




1863.]

Commercial Regulations.

479

This important enterprise was initiated less than a year ago by J. W .
F abens , late U. S. Consul General at Cayenne, who obtained from the

Spanish crown forty thousand acres o f land, rich in copper, and over two
hundred thousand acres admirably adapted to the growth of cotton. Till
now, a monthly line of steamers has been maintained, but the demands o f
trade have made a steam line indispensable, and the Tubal Cain will be
joined by a consort after October 28th, together making trips once in
every three weeks, and stopping at Bermuda, St. Thomas, St. John’s,
Mayaguez, and St. Domingo city ; thus saving to New York merchants a
journey of seven thousand miles, compared with the long detour, via
Southampton.
At the collation, H iram K etcham , Esq., President- o f the American
West India Company, occupied the chair, and, after appropriate remarks,
introduced Mr. F abens , who spoke o f this line as connecting New York
with the richest and most beautiful islands in the world, nearer to us than
the ports of Texas and Louisiana, yet almost unknowm, for want o f a ready
and suitable means of communicating with them.
Mr. A lvarez , Consul of Spain, congratulated the company on its pros­
pects of success. Mr. K imball , one of the directors, spoke o f the valua­
ble commercial facilities this line would afford, and of the charming fall
and winter pleasure travel destined to take the circuit o f those beautify
islands.
Mr. P hillips , commercial agent o f St. Thomas, said every merchant
there would throw up his hat with enthusiasm when this pioneer steamer
entered the harbor.
Mr. E lliott, late Consul in the city o f St. Domingo, said the island was
rich in mines of copper and gold ; vegetation was eternal, and the climate
very healthy, except where the sea water mixes with the rivers o f tb<$ in­
terior. All that was wanted was more labor. Mr. K etcham added that
the resources o f San Domingo would yet astonish the world.
Capt. M artin was then introduced. He goes out in behalf o f the West
India Company to inquire into the sources of mineral wealth, &c.
W . H. H allock , o f the Journal o f Commerce, and Mr. O ttarson , o f the
Tribune, responded to the toast in honor of “ Tbe Press.”
Mr. A ndrews , Surveyor o f the Port, was happy to contribute in any
degree to the success o f an enterprise which he felt assured would be con­
ducive to the prosperity of New York and the United States Government.
There was something poetical in the fact that while forwarding this en­
terprise, they were developing the resources o f the island where C hristo ­
pher C olumbus first landed, and were bringing to New York the wealth
of the Amazon, of a magnitude untold.
Mr. C lark , Clerk of the U. S. Senate, spoke o f the remarkable fact that
at such a period in the history of the country we should be engaged in
the peaceful pursuits of industry, as though there were no rebellion— or if
any, it was of no possible account.
The Tubal Cain is a Clyde built iron steamer, with five water-tight
compartments. She has been virtually rebuilt, by the skilful ship-joiners
D. F arrington & Son, at a cost of some $15,000, and is a very handsome
ship, with accommodations for fifty passengers in staterooms, and a large
freight. She is commanded by Capt. A ndrew P. F oster.




480

The International Postage Convention.

[December,

THE INTERSATIOiVAL POSTAGE OOWENTIOS.
G E N E R A L P R IN C IP L E S

AND

R E G U L A T IO N S

AGREED

U PON.

T he delegates of the Postal Administrations of Austria. Belgium, Costa
Eica, Denmark, Spain, the United States, France, Great Britain, Italy, the
Netherlands, Portugal, Prussia, the Hawaiian Islands, Switzerland, and
Hanseatic Cities, in pursuance o f the deliberations held at the General
Post Office in Paris, from the 11th o f May to the 8th of June, 1863, have
adopted the following general principles as being adapted to facilitate
postal regulations between nations, and to form the basis of International
Conventions for the regulation o f those relations :
I.
The articles which must or may be forwarded by the post from one
country to another, are divided into six classes :
1. Ordinary letters.
2. Kegistered letters, without declaration of value.
3. Registered letters, containing declared value.
4. Corrected proof-sheets, business papers, and other written documents,
not of the nature of letters.
' 5. Samples of merchandise (including grains and seeds), of limited
■weight and without mercantile value.
• 6. Printed matter of all kinds in sheets, stitched or bound, sheets of
music, engravings, lithographs, photographs, drawings, maps and plans.
II. Wherever it is possible, the prepayment of postage upon ordinary
letters should be at the option of the sender; but in case of such optional
prepayment of unpaid letters must bear a moderate additional charge.
III. Letters insufficiently prepaid by the postal stamps of the dispatch­
i n g country, must be rated as unpaid, deducting, however, the value of
the stamps affixed.
IV. Registered letters, whether with or without declaration o f value,
must in all cases be prepaid to destination.
V . All articles under bands, in order to take the benefit o f a rate of
postage less than that applicable to letters, must be prepaid.
VI. International correspondence o f all kinds, duly prepaid to destina­
tion, shall not be charged with any additional rate whatever.
VII. The rates upon international correspondence shall be established
according to the same scale of weight in all countries.
VIII. The metrical decimal system, being that which best satisfies the
demands of the postal service, shall be adopted for international postal
relations, to the exclusion of every other system.
IX . The single rate upon international letters shall be applied to each
standard weight of 15 grammes, or fractional part of it.
X . The single rates upon corrected proof-sheets, upon written docu­
ments not of the nature of letters, and upon samples o f merchandise (in­
cluding seeds), shall be applied to each standard weight of 40 grammes
or fractional parts thereof to one address.
X I. The standard weight for the single rate upon articles under hand
embraced in the sixth class o f the first resolution aforesaid, must be es­
tablished by special convention between the contracting parties.
X II. The rate upon letters must be fixed according to the weight stated
by the dispatching office, except in case o f manifest error.
X III. Registered letters, without declaration of value, shall be rated




1863.]

The International Postage Convention.

481

with a moderate fixed charge in addition to the rate applicable to ordi­
nary letters of the same weight.
X IV . Registered letters, containing ra declared value,, shall be rated
with a charge in proportion to the amount of the declared value in addi­
tion to the postage and to their fixed charge applicable to the other class
o f registered letters.
X V . In case of loss o f a registered letter, without declared value, and
in case of loss or spoliation o f a registered letter, with declared value,
each office will be held responsible for acts upon its own territory, and in
the service for which it has received a premium of insurance. Fifty francs
should be allowed to the sender of an unvalued registered letter lo st; and
and for a valued letter, so much of the declared value as shall have been
lost or abstracted.
X V I. Wherever intermediate transit charges may be practicable, the
rates upon international correspondence should be the same, by whatever
routes the mails are conveyed.
X V II. Where there are different mail routes, correspondence once shall
be dispatched by the route indicated by that upon the address, or by the
rate o f postage prepaid where present rates exist. In absence gf such in­
dication, the dispatching office will determine the route which it deems
most advantageous to the public interest.
X V III. Unpaid letters delivered by one Administrator to another, to a
country for which prepayment is counted, shall be returned to the dis­
patching office as wrongly sent.
X IX . Articles under band, and subject to a lower postage, with com ­
pulsory prepayment, shall, in case of insufficient prepayment, be dispatched
to their destinations with a suitable extra rate. If such articles are
wholly unpaid they shall not be dispatched.
X X . International postal accounts cannot be suppressed by a rule of
general application ; but they should be simplified as far as possible. O f­
fices of exchange should not be required to return acknowledgments of
receipt of mails, except for the correction of errors of the dispatching office.
X X L International post offices, accounting with each other for the
rules and charges upon correspondence exchanged between them, wheth­
er in open or closed mails, shall account, as far as possible, by the piece
for the correspondence in the open mails, and by the net weight for the
correspondence in closed mails.
X X II. Correspondence re-forwarded by reason o f a change of residence
of the person addressed, shall not, on that account, be liable to a supple­
mentary charge in favor of offices interested in the postage previously
accrued.
X X III. Registered letters addressed to persons who have departed for
a foreign country not interested in postage prepaid, shall be forwarded to
the new residence of the persons addressed, charged with additional post­
age, and with a supplementary registration fee, to be paid on delivery.
X X IV . International correspondence which shall have become dead
shall be returned, without cost, to the dispatching office.
X X V . As high transit charges upon correspondence present an insur­
mountable obstacle to the establishment o f an international system of
correspondence upon conditions advantageous to the public, the transit
charge for each country shall never be higher tliau one half o f the inte­
rior rate o f the transit country ; and for transit countries o f small territo­
rial extent, the transit charge shall be even less.




Maxima la Live and Thrive By.

482

[December,

X X V I.
The cost o f sea conveyance claimed by one country from an­
other shall in no case be higher than the rate charged upon its own correspondence by the country by tvhose vessels the conveyance shall be
effected.
X X V II. It i» desirable that postal administrations having accounts
with each other should serve as intermediaries for the transmission of
sums of money from one country to another, by means of international
money orders, whenever this can be effected without complications disproportioned to the advantages resulting from it.
X X V III. In case of the non-payment at the stipulated time o f the bal­
ance due upon an adjustment o f an international postal account, the
amount of the balance shall bear interest from the expiration of the stip­
ulated period, at the rate agreed upon by .Convention.
X X IX . In the adjustment of uniform postal rates, the greatest possible
number of countries should be included in the same zone and subject to
the same rate.
X X X . A free conveyance to its official communications with other
postal-administrations should be granted to each postal administration.
X X X I. ' Th^rjev^hould be a class of letters denominated “ urgent,” for
delivery hv'exhresR’' messengers, for which a supplementary charge shall

- «,c- ,

MAXIMS TO LIVE AMD THRIVE BY,

The following by J ohn G rigg , Esq., o f Philadelphia, are the founda­
tions of his success :
1. Be industrious and economical. Waste neither time nor money in
small and useless pleasures and indulgences. I f the young can be induced
to begin to save the moment they enter on the paths o f life, the way will
ever become easier before them, and they will not fail to attain a compe­
tency, and that without denying themselves any of the real necessaries
and comforts of life. Our people are certainly among the most improvi­
dent and extravagant on the face of the earth. It is enough to make the
merchant of the old school, who looks back and thinks what economy,
prudence, and discretion he had to bring to bear on his own business (and
which are in fact the basis o f all successful enterprise), start back in as­
tonishment to look at the ruthless waste and extravagance of the age and
people. The highest test o f respectability with me is honest industry.
Well-directed industry makes men happy. The really noble class, the
class that was noble when “ Adam delv’d and Eve spun,” and have pre­
served their patent to this day untarnished, is the laborious and industri­
ous. Until men have learned industry, economy, and self-control, they
cannot be safely intrusted with wealth.
2. To industry and economy add self-reliance. Do not take too much
advice. The business man must keep at the helm and steer his own ship.
In early life, every one should be taught to think for himself. A man’s
talents are never brought out until he is thrown to some extent upon his
own resources. I f in every difficulty he has only to run to his principal,
and then implicitly obey tbe directions he may receive, he will never re­
quire that aptitude of perception, that promptness o f decision, and that
firmness of purpose which are absolutely necessary to those who hold




1863 .]

Maxims to Live and Thrive B y.

483

important stations. A certain degree o f independent feeling is essential
to the full development of the intellectual character.
3. Remember that punctuality is the mother of confidence. It is not
enough that the merchant fulfills his engagements ; he must do what he
undertakes precisely at the time, as well as in the way, he agrees to. The
mutual dependence of merchants is so great that their engagements, like
a chain, which, according to the law o f physics, is never stronger than its
weakest link, are oftener broken through the weakness of others than their
own. But a promut fulfilment of engagements is not only o f the utmost
importance because it enables others to meet their own engagements
promptly; it is also the best evidence that the merchant has his affairs
well ordered, his means at command, his forces marshaled, and “ every­
thing ready for action
in short, that he knows his strength. This it is
which inspires confidence, as much perhaps as the meeting o f the en­
gagement.
4. Attend to the minutiae o f the business, small things as well as great.
See that the store is opened early, goods brushed up, twine and nails
picked up, and all ready for business. A young man should consider
capital, it' he has it, or as he may acquire it, merely as tools with which
he is to work, not as a substitute for the necessity of labor. I t is often
the case that diligence in employments o f less consequence is the most suc­
cessful introduction to great enterprises. Those make the best officers
who have served in the ranks. W e may say of labor, as C oleridge said
o f poetry, it is its own sweetest reward. It is the best of physic.
5. Let the young merchant remember that selfishness is the meanest of
vices, and is the parent of a thousand more. It not only interferes with
the means and with the end of acquisition—uot only makes money more
difficult to get, and not worth having when it is got, but it is narrowing
to the mind and to the heart. Selfishness “ keeps a shilling so close to
the eye, that it cannot see a dollar beyond.” Never be narrow and con­
tracted in your views. Life abounds in instances o f the brilliant results
of a generous policy.
Bo frank; say what you mean ; do what you say. So shall your friends
know and take for granted that you mean to do what is just and right.
6. Accustom yourself to think vigorously. Mental, like pecuniary cap­
ital, to be worth anything, must be'well invested— must be rightly ad­
justed and applied, and, to this end, careful, deep, and intense thought is
necessary if great results are looked for.
7. Marry early. The man o f business should marry as soon as possi­
ble, after twenty-two or twenty-three years o f age. A woman o f mind
will conform to the necessities o f the day of small beginnings; and in
choosing a wife a man should look at— 1st, the heart; 2d, the m ind; 3d,
the person.
8. Everything, however remote, that has any bearing upon success,
must be taken advantage of. The business man should be continually on
the watch for information, and ideas that will throw light on his path,
and he should be an attentive reader o f all practical books, especially those
relating to business, trade, etc., as well as a patron o f useful and ennobling
literature.
9. Never forget a favor, for ingratitude is the basest trait o f man's
heart. Always honor your country, and remember that our country is
the very best poor man's country in the world.




THE

MERCHANTS’ MAGAZINE
AND

COMMERCIAL

C O N T E N T S

VOLUM E

XL1X.

O F

N o .

D E C E M B E R ,

REVIEW.

V I . ,

V O L .

X L I X .

1 8 6 8.

NUM BER

V I

A rt.
paor
I.
T H E C R IS IS IN E U R O P E . C otton a n A bsorbent of Specie . .................................... 409
I I . T H E D E P R E C IA T I O N O F G O L D ................................................................................................... 413
I I I . T H E M O N E T A R Y U N IT A N D F I N A N C I A L E C O N O M Y .................................................. 416
I V . N A V I G A B L E C O M M U N IC A T IO N B E T W E E N L A K E H U R O N , M IC H IG A N , A N D
T H E ST. L A W R E N C E ........................................................................................................................ 426
V . C O M M E R C IA L L A W . N o . 8. N E G O T IA B L E P A P E R ; or , N otes of H a n d a n d
B il ls of E x c h a n g e ............................................................................... . ......................................
V I . O U R F O R E IG N T R A D E P A S S IN G IN T O F O R E I G N B O T T O M S ................................
V I I . C O M M E R C IA L C H R O N IC L E A N D R E V I E W ..................................... : ................................
V I II. T H E E R IC C SO N IR O N -C L A D S N O W B U I L D I N G ................................................................

JOURNAL

OF M E R C A N T I L E

429
435
440
446

LAW.

Im portant Insurance D e c is io n ........................................................................................................................ 1 449
Interesting Q uestion to Im porters in U. S. Court, b efore Judge N e lso n ...........................................450

JOURNAL

OF B A N K I N G ,

CURRENCY,

AND F I N A N C E .

C ity Bank M ovem ents and R eturns......................................................... ........................................................ 452
European F inances—Bank o f England R etu rn s......................................................................................... 455
U n ited States Banks............ .................................................................................................................................. 457
Condition o f the Banks o f N ew Y o rk S t a t e ................................................................................................ 458
R eal and P ersonal Estate, and Septennial Assesm ent, o f P h iladelphia............................................. 460

STATISTICS

OF T R A D E

AND

COMMERCE.

F oreig n W o o l Trade o f N ew Y o r k ................................................................................................................. 462
T h e Iron Trade for the Y ea r 1862 ....................................................................................................... *......... 463
Trade o f C a lifo rn ia ..................................................... ........................................................................................ 465

STATISTICS

OF A G R I C U L T U R E .

L ou isville Annual T ob a cco Statem ent— Crops in K en tu ck y and Missouri fo r 1863...................... 467
T o the G row ers and M anufacturers o f F la x and H e m p ........................................................................./>468
F a ll Crops o f 1863.......................................................................................
469

JOURNAL

OF M I N I N G , M A N U F A C T U R E S ,

AND AR T .

California D iscoveries o f G old, Silver, and C opper................... ................................................................ 470
Copper M ining Prospects in C anada................................................................................
......................... 4T1
T h e Chaudiere G old M ines................................................................................................................................. 472
T h e L ake Superior Silver Load D is c o v e r y .................................................................................................... 472
Silver M ining in M e x ico ...........; ......................................................................................................................... 473
Irish E m igra tion ................................................., ................................................................................................. 474

COMMERCIAL

REGULATIONS.

D ecisions o f the Treasury D epartm en t under the T a riff A c t o f J u ly 14,1863................................ 475
D irect Steam C om m unication w ith the W e st India Isla nds................................................................... 478
International P ostage C o n v e n tio n .................................................................................................................... 480
M axim s to L iv e and T h rive b y ............................................................................. ........................................... 482




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