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T H E
MERC H A N T S ’ M A G A Z I N E
%
and
C O M M E R C I A L
R E V I E W .
HUNT’ S MERCHANTS’ MAGAZINE FOR 1871.
W ith the first of January we propose to make an important, and as
we think, very desirable change in the issue ot this M a g a z in e :— thus
far its publication has been monthly : hereafter it is intended to furnish
it to our subscribers as a weekly, by incorporating it with our Commercial
and Financial Chronicle.
It is known to most o f our readers that the first issue o f H unt ’ s M er
c h a n t s ’ M a g a z in e was in June, 1839.
The idea of its projector and
editor was to provide business men with a valuable periodical devoted to
the commercial and industrial interests of the nation and, so far as might
be, of the world. How well that object has been attained is well indica
ted by its pecuniary success, aud the universal favor of its reception
among a large class o f intelligent readers, it having been from its earliest
number up to the present moment a paying investment, and to-day being
favorably known in every important commercial city of the world.
These are mere matters o f history familiar to the public.
But during the last few years the increased rapidity o f communication
between cities and nations by means o f railways and telegraphs has
changed into quicker movement all thought and action o f individuals and
communities. Commercial enterprise has thus developed into a new life
and in place of the ventures which formerly required months to consum.
1
402
hunt’ s merchants’ magazine tor
1871.
[December,
mate, now a few days or hours or even moments include both their
inception and completion. Thus it becama evident, some time since, to
the publishers o f the M a g a z in e thatj the infrequency of its issue (on ly
once a month) prevented its keeping pace with the growing wants and
necessities of the community. Its information was too late to be of
present use : so also its editorials on national or business policy which
when written were at least timely, too frequently had become dead and
lifeless through a change o f issue when they reached the eye of the
reader.
Feeling the force of these facts the publishers of the M a g a zin e a few
years since began the publication of the Commercial and Financial
Chronicle a weekly journal combining all the advantages of the M a g a
zin e with very many others which enabled it to supply the daily wants
of practical business men. W e aimed in its editorials also to make it a
trustworthy guide of the mercantile, banking, manufacturing and mone
tary classes. It is hardly necessary to say how well we have succeeded,
for the almost immediate and continued prosperity of that journal speak
for it. A t the present moment it has a very wide circulation not only in
this country but throughout Europe and no publication ever grew in
favor more rapidly, or so soon acquired so many warm and ardent friends.
In undertaking the publication o( the Chronicle we expected it to till the
place which the monthly issue o f the M a g a z in e was originally intended
to occupy. As it now more than does that, the necessity for the monthly
does not exist, and we shall not therefore issue any number o f the
M a g a z in e in that form after the present. To our entire list of subscribers,
however, the Chronicle will be mailed weekly after the first of January,
for one month, without charge to any who at the end o f that time desire
its discontinuance. Where the time paid for the M a g a z in e has cot
expired, the Chronicle will be sent in its place until the end of the term
for which payment has been made.
In thus incorporating the M a g a z in e with the Chronicle, and giving the
M a g a zin e a weekly issue instead o f a monthly, we have also determined
to publish, about the first of March o f each year, a volume to be called
the Commercial and Financial Year Boole o f H u n ts Merchants' Magazine,
which shall contain all the yearly statistics, &c., necessary for Bankers’ and
Merchants’ use, in a form easy of reference, with reports o f the different
branches of trade, &c. It is also our intention to give in it a brief sketch
o f the life of the more prominent merchants and business men who have
died during the year— a feature which will lend to it increasing interest
year by year.
W ith, then, the publication o f our Year Book each March, and o f the
Chronicle each week, we think the interests which the M agazine was
1870]
GENERAL GRANT AND TIIE FISHERIES.
403
intended to subserve will be fully provided fo r ; and we shall trust to
carry with us into this new field all our old friends, with whom, through
so many years, we have been so agreeably and pleasantly connected.
For particulars with regard to the Chronicle and Year Book we would
refer our readers to the advertising pages of this number o f the M a g a zin e o
GENERAL GRANT AND TIIE FISHERIES.
Five or six years a jo when the Reciprocity Treaty was under discus
sion we predicted trouble on the Fishery question, and urgently opposed
the surrender of the rights secured by that treaty. Every year has
fulfilled our prediction, and at length the complaints have become so
general that the President in his message has just laid them before
Congress, recommending that the evil shall be arrested, and an immediate
remedy applied. The remedy of General Grant would, however, be worse
than the disease. He wishes to be invested with the power, if needful,
to prohibit Canadian vessels from entering our waters, and “ to suspend,
by proclamation, the operation o f the laws authorizing the transit of
goods, wares, and merchandize in bond across the territory of the United
States to Canada. O f course there is not much nrobability, that in the
present temper of the public mind, these extraordinary powers will be
conferred by Congress. For k> solve the difficulty and gain the fishing
privileges desired we must sooner or later have recourse to negotiation
and make a new treaty. W ith a treaty, therefore, we had better begin ;
and we may perhaps discover, that the Canadians are just as anxious for
a satisfactory and equitable adjustment as we are ourselves. So far as
the Fisheries are concerned, the grievances o f which we complain against
Canada are summed up as follow’s by the President:
The course pursued by the Canadian au borilies toward the fishermen o f the United
States during the past season lias not been marked by a friendly feeling. By the
first article of the Ci nvention of 1818 between Great Britain and the United States ii
was agieed that the inhabitants of the United States should have forever, in common
with British subjects, the right of taking fish in certain waters therein defined. In
the waters not included in the limits named ir the convention (within three miles of
parts of the British coast) it has been the custom for twenty years to give to intruding
fishermen o f the United States a reasonable warning of their violation of the techni
cal rights of Great Britain. The imperial government is understood to have delegated
the whole or a share of its jurisdiction or control of these in-shore fishing,grounds to
the colonial authority known as the Dominion of Canada ; and this semi-independent
but irresponsible agent has exercised its delegated powers in an unfriendly way.
Vessels have been seized without notice or warning in violation of the custom pre
viously prevailing, and have been taken into colonial ports, their voyages broken up
and the vessels condemned. Theie is reason to believe thahlhis unfriendly nnd
vexatious treatment was designed to bear harshly upon the hardy fishermen of the
United States, with a view to political effect upon this government. The statutes of
the Dominion of Canada assume a still broader, more untenable jurisdiction ov.-r
the vessels of the United States. They authorize officers or persons to bring vessels
hovering within three marine miles of any of the coasts, bays, creeks or harbors o f
404
G E N iS IU . GRAXT AMD THE FISHERIES.
[ December'
Canada into port, to search the cargo, to examine the master on oath touching the
cargo and voyage, and to inflict upon him a heavy pecuniary penalty if true answers
are not given ; and if such a vessel is found “ preparing to fish” within three marine
miles of any such coasts, bays, creeks or harbors, without a license, or after the
expiration of the period named in the last license granted to it, they provide that the
vessel, with her tackle, <tc., shall be forfeited. It is not known that any condemna
tions have been made under this statute. Should the authorities of Canada attempt
to enforce it, it will become my duty to take such etepa as may be necessary to protect
the rights of the citizens of the United States.
It has been claimed by her majesty's officials that the fishing vessels of the United
States have no right to enter the open ports of the British possessions in North
America, except for the purpose of shelter and repairing damages ; for purchasing
wood and obtaining water ; that they have no right to enter at the British custom
houses, or to trade there, except for the purchase of wood and water, and that they
must depart within twenty-four hours after notice to leave. It is not known that
any seizure o f a fishing vessel carrying the flag of the United States has been
made under this claim. So far as the claim is founded on an alleged construction o f
the convention of 1818, it cannot be acquiesced in by the United States.
It is hoped that it will not be insisted on by her majesty’s government.
It must be remembered that our complaints [apply none of them to the
sea-fisheries, but only to what are called the shore-fisheries, that is to
the fisheries in Canadian waters. Our hardy sailors have been so long
used to the full enjoyment of these shore-fishery rights under the R eci
procity Treaty that they cannot yield them up. They especially urge two
particular grievances :— first, that their ships while fishing in Canadian
waters have not as heretofore been previously warned off, but have been
summarily dealt with for infraction of Canadian laws; and secondly, that
these laws are many of them oppressive and not to be endured if they
should hereafter be enforced with rigor. Our readers may perhaps
remember that these very points were urged both in and out of Congress
as reasons why the Reciprocity Treaty should not be allowed to terminate,
or that at any rate some attempt should be made to retain the shorefisheries that treaty secured for our seamen with all the rights and privi
leges to which they had been so long accustomed. During the war,
however, our fishing fleets had diminished for several jears, and ■lie
importance of the fisheries could not get itself recognized at Washington.
The Secretary of the Treasury in his report on the subject expressly
said that reciprocal legislation could safely be relied on for the purpose
in each country, and notwithstanding its evident weakness this argument
was accepted as a conclusive settlement of the matter. Accordingly in
I860 all the old laws in Canada were revised when the Reciprocity Treaty
expired, and it is to these old laws now partially obsolete but likely
perhaps to be hereafter more rigorously enforced, that General Grant
directs his chief opposition.
It was these very laws, which, before the beneficent system of free com
merce and free fisheries and the Reciprocity Treaty, repeatedly brought the
Canadians and ourselves to the verge o f war. By the old treaty of 1*783,
when our National Independence was conceded, our fishermen had always
1870]
GENERAL GRANT AND THE FISHERIES.
405
enjoyed the right to take fish on the shores o f the British provinces.
The war of 1812, as was claimed by the British government, had annulled
and destroyed these privileges. This claim was never assented toby us,
even at the treaty of Ghent. But at length, in 18] 8, a settlement of
the difficulty was made by a new treaty, in which the United States, in
consideration of certain reciprocal concessions, “ surrendered forever the
liberty to take, dry and cure fish within three marine miles o f any of
11iq coasts, bays, creeks or harbors in North America.” This treaty o f
1818 allowed our vessels to go everywhere, as under the treaty of 1783,
except within three miles of certain coasts, and our rights were especially
secured on the southern shore of Newfoundland, from Cape Bay to
the Quipon Islands ; at the Magdalen Islands, through the Straits of Belle
Isle, to an indefinite extent along the shore o f Labrador. This treaty,
under which our present fishery prnileges are held, has since received
but one important modification, This was made in 1845, when a corres*
pondence took place between Mr. Everett, our Minister at London,
and Lord Aberdeen. In this arrangement the British construction of
the treaty of 1818 was accepted; “ that our vessels should not fish
within three miles o f the entrance of any bay on the coast of Nova Scotia
or New Brunswick, except the Bay of Fundy ; and that the fishing
grounds of that bay, enjoyed before the war of 1812 and lost by that
event were re opened” to the free use of the fishing vessels o f the United
States.
In this state the fishery arrangements stand now, and as they continued
so for the nine years from 1845 to 1854, it may throw li^ht on the pres
ent controversy to find that the Hon. Amos Tuck, in 1854, in the House
of Bepresentalives, made similar complaints to those which we hear so
vigorously urged at present. Our fishermen, he declared, “ cannot go
through another season without involving themselves in serious difficulties
with the British pioneers. He believed there would be danger of blood
shed. There were no mackerel left on the shores of the United States.
The fishery cannot be successfully prosecuted without going within
three miles of the shore.
Unless we have the shore fishery grounds, and
enjoy them without molestation, the mackerel fishery will be broken up,
and that important nursery for American seamen will be destroyed.”
To the force of such weighty reasons was due the decision which cul
minated in the negotiation o f the reciprocity treaty which almost imme
diately put an end to the perilous controversy that had raged with little
interruption for half a century. Under the new arrangements our fishing
fleet rapidly increased, and the value of the fish taken by us was augmented
four-fold. The official statement reports that it increased from $280,000
in 1854 to $632,400 in 1855, and $1,265,700 in 1850.
In 1857 the
406
general grant and the fisheries.
[ December,
amount was $1,053,000; in 1858, $634,500; in 1859, $528,000; in
1860, $459,000, and in 1861, $416,400.
Subsequently tbe activity of
our fisheries was depressed by the war, but they are now rapidly reviv
ing, and they only need a renewal of the shore fishery privileges to cause
them to flourish with greater prosperity than ever. These shore fisheries,
we repeat, are to be had by treaty, and we recommend to the Govern
ment and to Congress to take early measures looking towards the
negotiation.
In the conditions of a treaty two points are to be insisted on, both of
which were stipulated in the treaty o f 1854. First, we want for the
inhabitants of the United States in common with the subjects of Great
Britain, “ the liberty to take fish of every kind except shell fish, on
the sea coast and shores, and in the bays, harbors and creeks o f Canada
and other Provinces without being restricted to any distance from the
shore.”
And secondly, we want the right to land on the coasts and
shores of the Dominions for the purpose o f drying nets and curing fish.
This second privilege of landing is extremely important. It was demanded
by us in the negotiation o f the Reciprocity Treaty because it very much
diminished the expense of fishing. Previously our fishing vessels had to
be fitted out at great cost, with crews averaging nine men to every
schooner of ninety tons burden, and lengthened their voyages to several
weeks. The Canadians on the other band could carry on their fisheiy
in small inexpensive vessels, with only two or three men in each, and
could return to shore dailv to cure their fish. Two weeks o f valuable time
were also spent by our men in returning home to unload freight every
time their ship was full. These inconveniences were serious. They were
costly hinderances to the remunerativeness of a fishery expedition, and
as they are now equally troublesome and destructive o f success they must
be got rid of by the same means as so speedily and so satisfactorily disposed
of them sixteen years ago. There is a third point which should not be
omitted from the proposed treaty. W e refer to the use o f the Welland
and St. Lawrence canals, with the free navigation o f the St. Lawrence
as an outlet for the growing commerce of our North-Western States ;
without the canals the freedom o f the river navigation will be ot little use
to us. W e are glad that General Grant has raised this Reciprocity
question, and though he has suggested a wrong solution o f the difficulty;
and has recommended hostile commercial restrictions, still the public
and Congress will doubtless conclude that, as such restrictions would only
make matters worse, the judicious and magnanimous policy for us as
well as for Great Britain is to make an equitable new Reciprocity Treaty.
18701
THE TREASURY DOCUMENTS#
407
T1IE TREASURY DOCUMENTS.
If it be an unwelcome task for the government of a great nation to meet
the people with the announcement of a deficit in the finances , the duty
o f Mr. Boutwell in preparing his report for Congress this year was a
very pleasant one. H e presides over an overflowing treasury ; the country
he says is prospering, the revenue is ample, the premium on gold has
been reduced to an average o f 15.2 per cent against 32.9 on the average
o f the year 1869 ; he has diminished the public debt 8119,251,240 during
the twelve months ending 30th November, and since he took office the
reduction is 8191,151,665, involving a decrease o f interest of ten millions
a year. Moreover, the income of the Treasury has been and is still so
large, that he expects to pay off at least fifty millions more of the public
debt during the current year. From these facts, the Secretary draws the
conclusion that the financial condition of the country has improved dur
ing the past year ; that we ought to continue, with as little modification
as possible, the existing fiscal system, whose productiveness is so la rge;
and that we must especially keep up our taxation to a level that will
provide a proper surplus for an annual reductim o f the debt, as an essen
tial condition for replacing our bonds at a lower rate of infe-est. Sub
stantially the same views are advocated bj' the President, who in con
cluding his message, says ‘‘ the policy of the alministration is a thorough
enforcement of every law ; a faithful collection of the tax provided fo r ;
economy in the disbursement o f the same; a prompt payment of every
debt of the nation ; a reduction of taxes as rapidly as the requirements
o f the country will admit— reduction o f taxation and tariff to be so
arranged as to afford the greatest relief to the greatest number.”
The report o f the Secretary is so interesting and important, that we
give up to it a large part o f our space this month. Hereafter we shall have
much to say of the gratifying features of these very able State papers.
N ow it is incumbent on us to refer to two or three things to which
exception has rightly been taken.
And, first, as to the prospect o f
replacing by a four per cent loan the outstanding five tweniies. Mr.
Boutwell thinks that if we do not g o on buying up our old bonds at the
rate o f four or five millions a month we shall not be able to negotiate new
bonds at a lower rate of interest.
This opinion he rests on the principle
that the credit of a Government, like the credit o f an individual, is improv
ed by making its paper scarce in the market, and that in this way the
credit of the United States is raised in Europe by the buying up o f our
bonds; and not only so, but the surplus in our Treasury which renders
possible such purchases gives increased stability to the confidence of
408
THE TREASURY DOCUMENTS.
[December,
foreigners in the National Government.
N ow this argument of Mr.
Boutwell’s is by no means generally approved by our most thoughtful
men. The market for our national securities is not so easily operated
on by such considerations as are involved in the purchase of fifty mil
lions a year out of an aggregate o f 1,500 millions.
Still Mr. Boutwell
thinks that but for the war in Europe he would before now have made
progress with his foreign negotiations o f a 4 or \\ per cent loan; and to
meet the difficulty he asks Congress to authorize the issue o f 300 millions
of five per cent bonds, with interest payable quarterly instead of semi
annually. This recommendation will probably be left for the action of
the Forty-second Congress; and if peace should previously be estab
lished the reason assigned for th e . enactment of this new facility will
be partially removed.
W e have frequently proved that our National Treasury ought to be
able to negotiate its '4 per cent bonds at par, and the resources o f this
country are so vast as not to need the purchase of a few millions per
annum o f a debt which is relatively so much smaller than those of
England or of several other o f the European nations, which never think
of bolstering up their credit by means of buying up their obligations in
open market. Although, therefore, for other reasons we warmly advocate
and have always approved the policy o f paying off our public debt, still
the process, however valuable and necessary for other purposes, can have
but little influence in the direction which Mr. Boutwell seems to suppose,
and will render him but slight aid in the project of floating in Europe
his four per cent and four and a half per cent new bonds. I f this be so
then one obstacle will be removed to the further repeal of unpopular taxa
tion. Congress seems determined on this policy, and the people demand
it. W e have already paid off a larger part o f our national debt than
under the old Sinking Fund would have been redeemed in ten years.
I f we pay considerably less this year than Mr. Boutwell proposes, and
so graduate our taxes as to lessen their pressure, we may perhaps subserve
public interests of a much more precious character, and contribute both
to the growth o f the wealth of the nation and to the development of
its productive power.
In support of this reduction o f taxation it is
urged that Mr. Boutwell mistakes when he claims that the people are
prosperous because gold has fallen and because the taxes are productive.
There is a common fallacy in regard to the movements in gold which
should be carefully avoided. Everybody knows that if we were at specie
payments we might escape most of the currency troubles which now
afflict us. Hence many people suppose that the nearer we get to specie
payments the better for us, and that every downward movement in
gold is not only a great public benefit, but a po'itive gain to the individual
1870]
CONGRESS AND OUR BUSINESS PROSPECTS.
4 f)9
citizen. Now this is not strictly true. It is disproved by facts. A ll his
tory and all experience combine to show that the path to specie pay
ments is very dangerous, and that an inflated depreciated currency cannot
approximate to a specie basis without causing much industrial distress
and commercial disaster. And for obvious reasons, moreover, the mercan
tile peril increases, the smaller the premium, and the nearer in view is
the goal of specie payments. Ten per cent, it is said, is not a heavy
premium on gold. It is apparently not a large margin to pass over.
But we may be well assured that the perils o f this last ten per cent are
not to be despised. England, during her bank suspension of almost a
quarter of a century, found it required several years to gain a currency
appreciation of ten per cent.
A m ong ourselves the fall in gold is a
calamity to multitudes of persons all over the country, whose business is
deranged thereby, and whose crops or other products are thus lowered
in price. Instead, therefore, of citing the late rapid decline in the pre
mium as a cause o f prosperity, we may rather regard it as partaking of
the nature of a tax levied on the people, the pressure o f which is so
severe as to justify the relaxing of the burden of other parts of our fiscal
system.
CONGRESS AND OUR BUSINESS PROSPECTS.
The opening of the short session o f the Forty-first Congress has failed
to supply the expected stimulus to speculation in W all street. Certain
watchful observers had anticipated that as usual a large number of sweep
ing financial measures would have made their appearance in both Houses,
and that before now we should have had a notable perturbation o f the
monetary equilibrium. W ith this expectation some of the money lenders
made their arrangements to take advantage of any derangement of the
loan market, and in consequence money, from artificial causes, has been
rather more active than for some time past.
The reception accorded
to Mr. Sumner’s bill, both in the Senate and by the public, will, we
hope, prevent any troublesome influx of similar pernicious measures, and
will save our people from the anxiety and incertitude which such bills
seldom fail to produce. This bill is not only one o f the most needless and
complex measures, but it is manifestly premature, unjust, and impractica
ble. Its professed design is to stop the replacing of mutilated currency,
so as to contract the volume o f our paper money, and to prepare the
way for specie payments by compelling the banks to hold all the specie
they receive for interest on their bonds deposited as security for currency,
and to change these bonds for four per cent new securities. W e need
scarcely discuss the details o f this measure to show that there is not the
410
congress and our business
PRospEcrs.
[December,
remotest prospect of its becoming a law. Indeed, tbe session is so short
and the pressure o f public business is so great, that we may rest assured
no bills involving currency contraction or threatening danger to the money
market will he likely to be passed. It were, however, to be wished that
the facilities were curtailed which allow tbe introduction into either house
o f such numerous crude financial measures as have consumed the time,
and disturbed the equanimity of our National legislators for several
years. Never in any country or in any deliberative assembly have such
a multitude of wild financial schemes and absurd monetary crudities been
placed on record as those we find embalmed in the reports o f Congress
during the last decade. If the waste of time were the chief evil charge
able against such schemes, there would be sufficient re; son to urge that
some check should be put on their pro moters. But the trouble is, that
when these financial projects are embodied in a bill and proposed in
Congress, they derange the delicate, sensitive mechanism o f the money
market, and thus throw the business of the country into confusion. Sup
pose, for example, that Mr. Sumner’s bill, above referred to, were likely
to become a law by the first o f January, what would be the result? The
first blow struck by this measure would reach the banks. These institu
tions would become alarmed, and, with their usual timidity, they would
make some arrangements to meet the contingency, and they would do
this with little regard to their dealers, in comparison o f the profit or
the safety of the bank. The consequence would be some curtailment
of the facilities that the banks had previously offered to the public.
Sixteen hundred banks in every part of the country would be set in
operation, and would carry out, more or less, the policy o f contracting
the monetary accommodation and lessening the business ficilities of the
mercantile community. Such would be the first result o f Mr. Sumner’s
bill, or of any similar measure which, by acting on the banks, sets in
motion an impoverishing mechanism all over the continent, and converts
every bank into a machine for contracting tbe credit and fettering the
business o f oui industrial population.
Tbe same illustration might be
applied to the other provisions o f the bill, especially to those which aim
at lessening the volume of paper money.
Enough has been said, how
ever, to justify the proposition that some impediment should be contrived
by Congress and some barrier raised against tbe inconsiderate introduction
o f rash financial measures. F or if any bills are proposed and discussed
in Congress with a probability, however small, of their becoming laws,
the effects likely to result are always discounted beforehand, and the harm
done in this way cannot easily be compensated. In most popular govern
ments o f modern times there are certain fundamental questions which
are protected from the attacks of hasty, crude legislation by “ coustitu-
1870]
TAX REFORM AND ITS RESULTS.
4U
tions” or by other expedients. It would contribute to the stability of
our currency and to the smooth operation o f our financial machinery
if all fundamental measures touching specie payments and contraction of
the currency were placed under some judicious restrictions. Congress, by
a joint resolution, once applied this method to the volume of the green
back currency, and gave a check to some o f Mr. McCulloch’s contracting
operations. And the arrangement was so successful that it will be a
gratifying sign of the times if by tacit agreement in Congress it could
be repeated and its benefits extended to other topics o f financial and
monetary legislation.
For the present then, and during the current session as we said, the
financial situation is not likely to be disturbed by Congressional inter
ference.
This assurance is the more important because in the absence
of such interference the existing monetary ease is likely to continue.
Usually at this time of the year we have an active money market not
unaccompanied by spasmodic and jerky movements.
This adverse and
mischievous state of the money market is well known to be due in part
to the inelasticity of our banking system and it has been averted this
year by various causes and especially by Mr. Boutwell’s excellent manage
ment of the Treasury.
Should the banks be compelled to reduce their
currency in New York as Mr. Boutwell recommends, this chronic inelas
ticity would be corrected, but we can scarcely expect that the reform
will be consummated before next year.
Meanwhile there are certain
facts which give assurance of an easy money market until the opening of
the spring trade.
For example, the currency balance in the Treasury
is large, and should there be any sudden scarcity of greenbacks, M r.
Boutwell would doubtless apply a remedy by buying an extra amount o f
bonds with his accumulating balance. In any case, the fear that he will
do so, prevents the tight-money speculators from using the artificial means
for disturbing the loan market, by which, for the last three or four years
■past, they have reaped such large profits. Moreover, the drain of cur
rency to the South and W est is smaller than usual, and the amount of
capital seeking investment in W all street is unusually large.
Hence, we
have most of the conditions for an easy loan market, and abundant promise
o f a favorable opening o f the spring business.
TAX REFORM AND ITS RESULTS.
De Toequeville very aptly says, that the presence o f bad fiscal laws,
and their power to provoke and irritate a nation, is in proportion as these
laws meddle with the private life o f the citizen, touch his business activi
ties, degrade his moral sense and impair his reverence for government.
412
tax reform and its resolts.
[December,
This principal had a signal illustration in that avalanche of disaster
with which the misrule ot the ancient regime overwhelmed the French
people at the close o f the last century. The same truth is written in the
history of all civilized nations, and it has taken its place as one o f the
fundamental axoims of practical statesmanship, wherever good govern
ment is demanded and enforced by the spirit o f freedom. In this country
it has been one o f the noblest achievments o f Congress that this princi
ple has been applied to our internal revenue system till that system is
now purified from its most mischievous evils and is more nearly approach
ing a tolerable adaptation to the habits and tax-paying powers of the
American people.
Although this is undoubtedly true of the general
spirit and tendency of our internal revenue laws, still, in the details o f
revenue reformation, much remains to be done. And it will much facili
tate the process if we keep before the public mind a clear and lucid notion
of the real direction in which our tax system needs to be dealt with, so
that we may discover its maladies and may apply the proper remedy.
The cardinal principle o f all fiscal science is, as we have often said,
that taxes should be so adjusted as neither to obstruct the increase of
the national wealth nor to oppress, or degrade, or demoralize the people.
In applying this axiom one rule is, to have as few persons as possible
engaged directly in paying taxes to the government. In this principle
we find the popularity of indirect taxation, one o f the most conspicu
ous forms o f which is the duties on imports. Custom duties are paid
by a small class comprising chiefly merchants, many o f whom are foreigners.
Hence their grievances if they are oppressed do not affect except indirectly
the people at large. In this country more than even in England a very
considerable part o f government revenue has always been drawn from
the customs duties.
But secondly the stupendous debt, by which the war has burdened
us, long ago convinced every reasonable man that no well adjusted system
o f customs duties could be contrived by which it would be possible
for us to raise the three hundred millions o f dollars requisite to enable
the national Treasury to meet all demands upon it.
Internal taxation being inevitable, the same rule should be applied to
it as governed the customs duties— the internal taxation should be levied
on such commodities and by such arrangements as that a few people
may pay it to the Government, and add the amount in the prices of the
taxed articles. In England centuries o f experiment among a turbulent
people, impatient of oppression and of the same race as oui selves, seemed
to point to spirits, ale and tobacco as suitable articles to bear the chief
burdens of taxation. Every possible facility for di-covering fiscal expe
dients had been exhausted before this simple method was adopted. But
1870]
4'.3
TAX REFORM AND ITS RESULTS.
it had worked so well in England that in the infancy of our American
tax system T he M a g a z in e ventured to recommend it for adoption
here. Our advice was not followed, our warnings were unheeded,
and the result was a multiplex and heterogeneous system of internal
taxes with which for some years this nation was despoiled and burdened.
It is said, and we believe with truth, that no inconsiderable part o f the
stagnation of business which paralyzed the country in 1867, and began
almost immediately after the removal of the stimulus o f the war, was
due to perilous burdens o f improvident taxation, by which so many nations
have impoverished themselves.
“ A bad tax,” says De Tracy, “ may
do more harm to a country than a most disastrous campaign.” And
Spain, as is well known, destroyed completely the prosperity o f one o f
her most thriving provinces by an injudicious tax law rigorously adminis'
tered and persisted in after its evil results weie but too evident. But
such stolid Spanish haughty persistence in ill-doing is not a characteristic
o f the keen, pliant, versatile American.
Few peoples have made so
many great blunders in legislation, perhaps ; but certainly no nation in
the world has ever been so quick to discern its errors and so prompt to
retrieve them. Our readers will well remember the reluctance with which
in 1862 many of the leading statesmen accepted the fiscal situation and
decided in favor of internal taxes. These taxes, wnen imposed, were so
badly adjusted, that for two or three years it was computed that less than
one-third o f what was paid by the people passed into the Treasury. O f
the tax on spirits it is said that nine-tenths o f what the public paid failed
to enter the National Treasury.
Now, however, learning wisdom from
the errors of the past, w eha''e a system which only requires a few further
amendments to make it as easy to bear as any fiscal yoke can probably
be so long as the urgent demands of the debt, and the other expenses
of the Government require so large an annual revenue. The progress
that has been made in eliminating tbe unproductive multiplicity o f inqui
sitional and vexatious small taxes, and in rendering productive those on
Spirits, Ale, Tobacco and Income is well exhibited in the following official
statement of the sources and productiveness o f our Internal Revenue for
the last eighteen months compared with the eighteen months preceding.
COMPARATIVE STATEMENT 0 ? THE INTERN AL REVENUE PROM SEPT. 1,
AND FROM M AY
1, 1869,
TO AU G.
Spirt ts............................................................ .................
Fermented Liquors..........................................................
...................
...................
Income (including salaries)......................... .................
Banks and Bankers...................................... ..................
..................
..................
...................
18C7,
TO FE B .
28, 1869,
31, 1870.
1867-69.
$41,618,634 34
8,519,416 83
9,455,570 20
9,630.962 95
4,980,259 CO
4,320,319 10
10,994,425 26
2,094,367 39
1,832,607 93
1869-70.
$32,417,419 S5
40,501.065 64
10,054,026 41
10,078,219 21
12,866,660 SO
68,074,778 32
6,973,319 89
17,186,163 42
2,437,842 70
2,163,023 50
414
NEW FOUR PER CENTS AND TUE DEBT STATEMENT. [ D e c e m b e r ,
Articles in Schedule A
P assports....................
Gas................................
Articles now exempt..
Penalties ....................
Adhesive S tam ps.......
Total from all sources,
1867-69.
1,031,582 68
31,634 00
3,010 933 57
53,235,310 03
1,663,774 88
22,983,312 06
1869-70
1,714,986 74
37,135 00
3,437,045 50
1,019,293 99
1,232.834 41
25,296,396 63
$241,320,765 92
$291,492,827 01
T w o points are also illustrated by this table. First, the recovery of
an industrial people from the evils o f bad taxation is much slower than the
evasion of those evils. T o take off a mischievous tax does not at once
undo the evils that tax has brought in. For nearly two yrars w>- have
had an improved and comparatively enlightened system of imenial
taxation, and yet many of the evils caused by the old system f-iiil -urvive
and promise longevity.
c Secondly, a good system of reduced taxation is more productive
of revenue than an ill adjusted and bad system. Hence it has been often
observed that a judicious reduction o f taxes adds to the revenue rather
than diminishes it. This elasticity of our fiscal system is well illustrated
in the foregoing table, which shows that under our present reduced tax
rates the gross revenue receipts from all sources for the last 18 months
have exceeded the amount received during the 18 months before the
reduction o f the taxes by no less a sum than fifty millions of dollars.
THE NEW EOl'R PER CENTS AND THE DEBT STATEMENT.
Some curiosity has been expressed at the appearance in W all
street of a new issue of government bonds bearing 4 per cent. interesf)
and having five years to run. A t first it was conjectured in various quar
ters that these bonds were in some way designed to form part o f th8
arrangements of Mr. Boutwell for setting in operation tbe funding bill
o f which so mucn has been said both in and out of Congress. For this
and other reasons the December statement was looked for with
more interest that it would otherwise have been. From that document
we find that the bonds in question are the small issue which was author
ized last session, and was announced by us in our November issue. Tbe
amount so far is only $678,000, and they were designed to pay to tbe
State of Massachusetts the interest o f disbursements during the war o f
1812, and constituting an old standing, vexed, claim o f the State against
the National Government.
These new securities are coupon bonds, and
being offered at 92^ tbey present an attraction to tbe public as they
yield 6 per cent, interest on the money invested. Had they been regis
tered bonds instead o f coupon, they would have been more desirable lor
our savings banks, trust companies and other financial institutions. But
jn that case they would have been available for the foreign market where
1870]
NEW FOUR PER
CENTS AND THE DEIST STATEMENT.
415
in all probability a good proportion of them were soon be absorbed. For
before the 5 years life-time of these bonds has elapsed there will probably
be no government bonds to be purchased at par, and even now there are
none to be had, yielding six per cent, interest on the capital invested in
them.
The supposition that these bonds could in any degree aid the
negotiation of the new four per cents of the funding bill was o f course
untenable as the latter are long gold bonds, and are besides to be nego
tiated at par in gold, while the former are 5 year currency bonds, and are
offered at 7-J- per cent, below par in currency. Mr. Boutwell’s schedule
informs us that these new five-year bonds or certificates of indebtedness
ns they are styled on their face, were authorized under the law of 8th July,
1870.
It is claimed to be a better arrangement for us to pay such
debts in four per cent, currency bonds than in cash so long as the Treas
ury is able to call in and cancel its six par cent, long gold bonds for the
sinking funds at the current prices. The policy o f buying up and can.
celling our gold bonds has been carried on very satisfactorily up to this
time. During the month of November the gold bearing sixes diminished
from 1,731 millions to 1,724 millions, and the aggregate of the debt
exhibits a decrease of no less than $7,475,860. Allhough, therefore, our
people object on principle to the issue of Government bonds, or to the
increase of the national debt, for subsidies or for ordinary purposes, or
for any new disbursements to railroads, steamships, or other corporations
still in the case of these old war claims, a concession may perhaps be
made if we exact and enforce the condition that the exception be not
drawn into a rule or converted into a precedent for future less defensible
claims. The nation has watched with too much anxiety the headlong
growth of the debt and its hopeful liquidation, to tolerate with patience
any policy looking to ils increase by subsidies. And not to the people
only would any reversal o f the policy of liquidating the debt be distaste
ful, but to the Administration abo
For this retrograde movement would
violate the fundamental principle of Mr. Boutwell’s system, who has paid
of the bonded debt in principal, interest and premium almost 190 millions
since he took office in March, 1868. There is, therefore, we hope, but
little ground for the opinion o f those persons who have argued from the
issue o f this small amount o f war bonds to the State of Massachusetts,
that we are to expect other similar issues o f a prodigious amount, to the
score o f hungry corporations whose public spirited emissaries are already
gathering in Washington, clamorous for Government subsidies o f various
kinds, and for an infinitude o f purposes for which private capital and
private enterprise can and must suffice.
In applying these principles we do not prejudge the controversy of the
Pacific railroad companies. That case is under the consideration of the
416
new
roue
per
cents
and
the
debt
STATEMENT.
[December,
government, and as it involves simply the interpretation o f a contract, it
is wholly different from those we have been discussing. The Pacific com
panies claim, as we recently showed, that the contract between them and
the government conferred upon them, if interpreted literally*, -a subsidy
of $64,618,832 for thirty years, the government issuing bonds for that
amount and paying most of the interest as it accrues, while the companies
pay the principal and interest at the maturity of the bonds; when the
payments due, with interest compounded, inay probably amount to but
little short of 200 millions o f dollars. To this interpretation Mr. Boutwell objects, claiming that the companies shall promptly pay up the
interest in cash.
He admits that the law, if interpreted literally, does
not expressly demand this payment; but he claims, as we understand
him, that the question was left open either by an oversight or from some
other cause wholly unconnected with any intention on the part of Con
gress that the, railroads which are now so prosperous should be freed
from the obligation to pay up interest as it accrues. The belief is current
that a new law will be introduced into Congress to set this controversy
at rest, and to declare with authority the real intent of the laws of 1862
anu 1864, in which the ambiguous provisions are found. Mr. Boutwell,
it will be remembered, is the first Secretary of the Treasury who, in the
monthly schedule, separated these currency sixes from the war debt o f
tbe Government. Mr. McCulloch included them in his tables with the
other currency indebtedness.
But, in April, 1868, in Mr. Boutwell’s
first published schedule, these currency bonds were eliminated from the
mass of the debt, and placed by themselves in full detail at the foot o f the
schedule. This change enables Mr. Boutwell to show the exact state o f
the account between the railways and the Government, exhibiting especially
how much money has been advanced by the Treasury for interest, how
much has been repaid by services or otherwise, and how large a balance
is still unpaid. These items he reports elaborately in the schedule before
us, and claims that the Companies owe and must promptly pay over six
millions of dollars.
W ith a view to bring the question before the
courts, he has just given orders that no more money shall be paid
under the law o f 1864 to the Pacific Railroads on account of transpor
tation or other services to the Government. This law requires that onehalf of the value of such services shall be paid in cash, while the other
moiety shall be reserved by the Government towards paying the interestMr. Boutwell has resolved to refuse payment altogether, and now the
Companies will probably seek their remedy in the courts, except, indeed,
the rumor is true that the matter will be referred to Congress.
It is
somewhat significant that this controversy has produced a decided effect
on the securities o f the Pacific roads. Instead o f declining, as had been
1870]
THE TAX O ff TOBACCO.
4
expected, those o f the Central Pacific have advanced, while the bonds
and shares o f the Union Pacific, which, from other causes, were tempor
arily depressed, sustained a rapid recovery.
In the December schedule o f the debt there is but one other point sug
gesting special notice. W e refer to the balance in the Treasury. The
currency balance is still increasing.
It has risen to $28,453,291 against
$26,815,383 on the 1st November. The coin balance in consequence of
the heavy disbursements and declining receipts has fallen off, so that the
Government gold is now nine millions less than a month ago. It amounts,
however, to 80 millions. This coin reserve is amply sufficient for all pur
poses for which specie is likely to be required, although it leaves some
doubt as to the continuance of the liberal sales o f gold by the Treasury
next year. Still as the European news is interpreted in a sense favorable
to an early peace the current o f gold in the market may not be unduly
contracted even should the policy of selling gold by the Treasury suffer some
modification.
THE TAX ON TOBACCO,
The late Commissioner of Internal Revenue, in his annual Report, which
was laid before Congress last week, suggests that the tax upon tobacco
ought to be made uniform upon all grades, in order to put a stop to
fraud. This suggestion is the most important in the report, both in itself,
as an amendment to the detail o f our present tax system, and in its rela
tion to the general principles on which every such system ought to be
founded.
From the beginning of internal taxation, tobacco has been regarded b y
Congress as one of the two or three articles on which the heaviest tax
may be laid that can be collected ; no consideration whatever has been
given to the consumer. The inquiry o f the legislator has been, not
what ratio and by what methods o f taxation will this product yield the
largest revenue? The tax must not be so high as to raise the price
beyond the consumer’s power to pay it; it must not be so high as to
become a premium on fraud, and pay producers for cheating the gov
ernment ; these are the only limitations that have been recognized; and
the whole problem has been greatly simplified by thus shoving the claims
o f consumers for consideration out o f the case.
Yet no adjustment of the tax as yet devised has been satisfactory either
to the government or to the tax payer. Every year some new project o f
a tobacco tax has occupied the time o f committees o f Congress; and
there have already been seven or eight o f these plans actually adoptedj
418
THE TAX ON TOBACCO.
[December,
in succession. From the first, the rates have been different upon different
kinds of tobacco ; upon the assumption that the lower grades, for instance,
prepared for smoking, “ could not bear ” so high a rate as must needs be
collected from the choicest kinds. Y et while this discrimination has
been kept in view, it has been found that the better kinds were constantly
sold, with or without false labels, after paying only the lower tax. A t
first for instance, “ fine cut shorts ” were favored; but everything that
could be smoked began to be sold as “ shorts,” and the committee of
W ays and Means taxed them at the same rate with the best product o f
the factory. Then a general complaint arose that “ shorts” could not
be sold at all, and the rate was lowered again. Cigars were heavily taxed
by number; so that only very large cigars could honestly pay duty, and
the use o f pipes became more general.
The tax was then changed so
as to take into account the weight as well as the number of the cigars ;
and the complication became a great expense in collection and a cover
to fraud. As a last result, the tax was reduced to a uniform rate o f only
five dollars a thousand; and now the choicest of large cigars, weighing,
say, twenty-five pounds per thousand, pay only twenty cents per pound^
while the most common article o f smoking tobacco, if so much as stemmed
in the preparation o f it, pays forty cents per pound.
In short, every attempt to proportion the tax to the value o f the
different grades of Tobacco has utterly failed, when it has come under the
practical test to which the ingenuity o f manufacturers striving to evade
taxation constantly subjects the system. The present rates of taxation are
actually as unequal in their bearing upon the various grades of the manu
factured article as a uniform rate o f duty could be, and since the only
possible objections to a uniform rate is this inequality, it must be
admitted that nothing is to be gained by refusing longer to adopt it.
In fact, such a rate would actually, on the whole, be nearer to a uniform
per centage in the value of the manufacture than the present discrimi
nating rates, under which the heaviest domestic Cigars pay only as much
as the lightest Cigarettes.
But the great advantage o f the adoption of a uniform rate, by weight,
will be found in the simplification of assessments. It is a fundamental
principal o f taxation that simplicity in the rates and methods of taxing
is at once the best security for cheap collection, and the best guaranty
against fraud. During the first few years o f our Internal Revenue system.
Congress seemed to act upon the directly opposite belief; and every effort
was made to complicate the law itself and its administration. Duties upon
duties were followed up with penalties upon penalties for evasion, and with
spies upon spies for detecting evasions. The result was the building up,
in whiskey and tobacco, and in some other branches, o f an amount o f
1870]
419
THE TAX ON TOBACCO.
fraud never paralleled in a civilized nation. The act of 1868 was the first
serious attempt to simplify the tobacco tax, and to rely for its collections
upon the simplicity o f the law, and the honesty o f officers, rather than upon
complicated “ checks” and spies. This act, which began to produce its
effects upon the receipts at the beginning of the revenue year, 1869 (July
1, 1868, to June 30, 1869), has worked so well that it surely ought to
encourage Congress to complete the work o f simplifying the law. The
f Mowing table shows the receipts of Internal Revenue from all kinds o f
tob coo. including snuff and cigars for the last seven years:
Year udi< g,
Jane 30, 1864
•*
17-65
“
18<>ti
**
15:67
“
1808.
“
18'9.
“
1870.
Total Collections
....
----....
....
....
---------
$8,583,043 r ,
11,387.794 0«
10,514,332 6o
19,705,820 8q
18,641,091 0o
23,430,707 5?
81,350,707 8 g
I : will be seen that the increase is already enormous, under the lower
rates of duty established in 1868 ; and Commissioner Delano assures
us that it is still steadily going on at the rate of about 8600,000 every
m onth; so that even the present tax on tobacco has not yet nearly
leached the limit of its productiveness.
The officers of the revenue are
however beset with difficulty in their work. These are still four different
rates of duty upon manufactured tobacco, including cigars ; two of them
upon different kinds of Turkish tobacco; and the amount o f frau 1 or
evasion committed under the law is sufficiently shown by the fact that
while the higher tax, fifty cents per pound, is levied by law upon all Tur
lush tobacco which is in any way “ sweetened, stemmed or butted,”— that
s upon nearly all that is actually used— about five-sixths of the Turkish
tobacco sold pays only fifteen cents per pound.
But the imperfect working o f the present law appears much more
strikingly under another point of view. The tax of 831,350,708, collect
ed on all manufactured tobacco last year, represents a total product of
all kinds of about 95,000,000 pounds.
If the waste o f manufacturing
be reckoned at cne-third— a very large average, in view of the fact that
“ shorts,” stems, and unstemmed smoking tobacco form so large a part
of the assessed product— the whole amount of the tobacco crop which
was brought to duty last year was less than 140,000,000 pounds. Now
it is not necessary, in order to show the absurdity o f this, to appeal to
the exaggerated estimates of the actual crop made by some o f the
advocates o f a tax on leaf tobacco ; but it is certain that the actual
tobacco crop o f the United States has each year since the war, been
much in excess o f this amount; nor, after deducting all tho exports, the
loss in harvesting and curing, and the accumulations in the trade, can
420
REPORT OF THE SECRETARY OF TI1E TREASURY.
\DeCember,
there in any year have been less than 250,000,000 pounds, which can
only be accounted for by supposing that it has gone into the hands of the
manufacturers.
The consumption o f leaf tobacco, unmanufactured, so
much insisted on by a former report of the Internal Revenue office, goes
but a very short way to explain the difference; and only the systematic
use of old stamped packages for refilling, and of old stamps by dishonest
manufacturers and dealers, together with the underhand sales of unstamp
ed goods, and the constant undervaluation in amount of product, and
in the class of smoking tobaeco, can account for it.
In other words, the frauds in this branch of the revenue are still
enormous. Let a uniform rate o f tax be levied on every pound of
Tobacco that is manufactured, and let the manufacturer be required to
account for all that he buys, and the greater part of these evasions may
be done away.
Thu steady improvement of the revenue service, by
adding to the efficiency and honesty of the officers, must do the rest.
If the consumption of manufactured Tobacco, in all forms, in the United
States is only 200,000,000 pounds, and probably no one will make so
low an estimate o f it, a uniform tax of twenty cents upon it ought to
yield $40,000,000, or thirty per cent, more than is now collected, when
the lowest rate is fifteen cents, and that upon all the good qualities is
forty cents. Even upon Cigars, on the average, the rate would be lower
than it is now. The details of the collection must be left to those who
may prepare a bill to carry out the Commissioner’ s suggestion; but the
old system o f government warehouses, with a registry of all the leaf
Tobacco purchased by the manufacturers seems to afford a basis for a safe
method of carrying it out.
ANNUAL REPORT OP THE SECRETARY OP THE TREASURY.
T reasury D epartment,
Dec. 5 ,1S70.
S ia : The financial condition o f the -country has improved during the past year.
The average rate of gold for the year 1869, as shown by weekly a lies, was 32.9 per
•cent, premium, and lor the first eleven months o f the year 1870, 15.2 per cent
premium, indicating an improvement in the value of the paper currency o f about
seventeen per cent.
From the first day o f July, 1869, to the 30th of June, 1870, inclusive, the public
debt, as shown by the warrant account, was reduced in the sum o f $101,601,916 88.
From the first day of December, 1869, to the 30th day of November, 1870, inclusive,
the reduction was 119,251,240 58, as shown by the monthly statements of the public
d e b t ; and the total reduction from the 1st of March, 1869, to the let of December,
1870, was $191,154,765 36. The consequent reduction in the interest account is at
the rate of more than $10,000,000 per annum. The receipts for the fiscal year ending
June 80, 1870, were as follows : From customs, $194,538,374, 44 ; internal revenue
$185,128,859 37 ; sales of public lands, $3 350,481 76 ; miscellaneous sources’
18‘. 0]
421
REPORT OF THE SECRETARY OF THE TREASURY.
$28,237/762 06 ; total, $411,255,477 63. The expenditures for the .same period
w ere: For civil and miscellaneous purposes, $69,234,017 16; War Department,
$57,655,775 40 ; Navy Department, $21,78a,229 87 ; Indians and pensions, $31,748,140 32 ; interest on the public debt, $129,235,498 ; total, $309,653,560 75. This
statement exhibits a surplus applicable to the payment of the public debt, including
the amount pledged to the sioking fund by the Act o f Feb. 25, 1862, of $101,601,9 ! 6 88. The receipts for the first quarter of the present fiscal year were, from
customs, $57,729,473 57 ; internal revenue, $49,147,137 9 2 ; sales of public lands,
$842,437 67 ; miscellaneous sources, $7,382,181 69 ; total, $115,101,230 75. The
expenditures for the same period, excluding payments on account of the sinking fund,
were : For civil and miscellaneous purposes, $18,207,242 49 ; War Department,
$10 218,538 36 ;Navy Department, $4,815,237 58 ; Indians and pensions, $18,825 451 89 ; interest on the public debt, $39,496,450 51 ; total, $86,562,920 83.
The estimated receipts for the remaining three-quarters of the present year are as
follows: From customs, $128,000,000 ; internal revenue, $98,000,000; sales of
public lands, $2,000,000 ; miscellaneous sources, $16,0: 0,000 ; total, $244,0 0,000.
The estimated expenditures for the same period are: For civil and miscellaneous
purposes, $54,000,000; War Department, $30,000,000; Navy Department, $15,000,000;
Indians and pensions, $24,500 000 ; interest on the public debt, $80,000,000; total,
$208,500,000. Showing a balance applicable to the payment o f the public debt,
including, however, the amount payable on account of the sinking fuod, of $69,038309 92. In estimating the expenditures for the next fiscal year I have inluded the
sum of $24,600,000 properly chargeable to the current revenue as an appropriation
under the acts of February 25, 1862, and July 14, 1870, relating to the einkiog fund.
Althi ugh the language employed in those acts is not the language commonly used in
appropriation bills, it still has the force and effect of a permanent appr priation.
I therefore so treat it. There will be required also the sum of $4,866,933, being the
amount answering to the interest on the capital of the sinking fund, as represented
upon the books of the Department. This sum I have included in the estimate
o f expenoitures for the fiecal year ending June 30. 1872. Upon this basis I submit
the following estimate of receipts and expenditures for the next tiscal year.
ESTIMATED RECEIPTS AND EXPENDITURES FOR THE T E A R ENDING JUNE
30 1873.
RECEIPTS.
From customs...................................................................................................................$175,000,0'0
From internal revenue................................................................................................... 120,418,000
From sales o f public lands..............................................................................................
3,000,000
From miscellaneous sources.......................................................................................... 16,000,009
Total.......................................................................................................... ................ $320,418,000
EXPENDITURES.
Legislative establishment......................................................................................... $3,263,9(6 34
Executive establishment......................................................................
17,238,165 50
Judicial establishment. .........................................................................................
2,348,750 00
Military establishment.............................................................................................. 28,488,194 00
Naval establishment............................................
20,045,417 77
Indian Affairs..............................................
5,021,569 03
Pensions..................................................................................................................... 80,000,000 00
Public works............................................................................................................... 22,338,278 37
Postal service.............................................................................................................
4,094.383 00
Miscellaneous............................................................................................................. 14,3(5.428 60
Permanent appropriations......................................................................................
182,528,234 00
Mnk<npfund.................. . ................ . . . ........................................................... 24,500,0(0 00
Interest upon capital o f sinking fond......................................................................
4,866,933 00
7ota............ ............................. ...........................................................................$309,639,319 61
REDUCTION OF THE DEBT.
According to this estimate there will be a eurplus applicable to the payment o i
the principal of the public debt, in addition to the payments made on that account
through the sinking fund o f $10,778,680 89. An analysis of the expenditures
develops facts tending to eustain the opinion that the balance will be considerably
larger than appears from the for.?going estimates. The sum of $22,338,278 37 is the
est mate lor public works. The appropriations for these objects for the present
422
REPORT OF THE SECRETARY OF THE TREA SURY,
[December
year are less than $12,000,000, and it is reasonable to presume that the appropriations
for the next year will not much exceed that amount. It is believed, also, that the
estimates made by the several departments for the different branches o f the public
service are for the maximum amounts which w ill be required under any circum
stances. I f such is the case, there will remain on the SOth i f June, 1872, unexpended
balances to be covered into the Treasury. It may, therefore, be reasonably antici
pated that the total reduction of the public debt during the next fiscal year, including
payments on accountof the sinking fund, will be about $50,000,000. It is a noticeable
fact that the estimated expenditures for the next fiscal year, including payments on
account of the sinking fund and for the interest on tha public debt are so nearly
equal to the receipts as to justify and demand the greatest caution in dealing with
the revenues and business of the country. It is apparent that a disaster, or even a
serious check to business, would reduce the revenues below our necessary expend
itures. It is apparent, also, that the prosperous condition o f the countr is largely
due to the revenue system inaugurated during the war, by which manufactures and
the mechanic arts have been extended and established. This policy cannot now be
rashly abandoned, o suddenly and radically changed, without great injury to business
and labor, and serious consequent losses of revenue.
FUNDING THE
DEBT.
The war in Europe has rendered it impracticable to refund the national debt
as authorized by the act approved July 14, 1870. A portion of the paper has been
manufactured, and the preparation of the plates has been so far advanced that
whenever a lavorable cppo'tunity arises the loan may be offered ant the bonds
delivered without deley. Inasmuch as the war in Europe and the consequent
demand for money makes it doubtful wl etln r the 4 an I 4£ per cent bonds wdl be
taken, it seems to me wise to authorize the issue of three hundred millions additional
o f b >nds bearing interest at the rate of five per cent. The interest can be pai l
quarterly without inconvenience, and I theiefore respectluliy r common I that the
Loan act be so modified that the payment of interest may be made quarterly instead
o f semi-tmiuslly. khould these recommendations be approved by Congress, it is
of great importance that an act authoriziog the changes be p issed without delay.
CUBRENCT
BALANCE— NATIONAL
BAKES.
Since the 1st of July the currency balance in the Treasury has been unusually, and
for immediate purposes unnecessarily large. The act of July 12, 1870, authorizing
an increase of national bank notes, imposed upon the Secretary of the Treasury
the duty of providing for the redemption of equal amounts of three per cent, cert ficates. The certain, though f rospective decrease in revenues, both of coin and cur
rency, made it my duty to reserve a sum sufficient to enable the Department to
comply with the law without resorting to extraordinary means. Happily, the
financial condition o f the country has not been unfavorably affected by the accumu
lations in the Treasury. During the year ending Sept. SO, 1870, the national banks
paid in interest the sum of $6,486,172 66. It is estimated that erf this sum$2,'i 0,000
were paid to private parties. I cannot doubt that the practice of paying interest,
except upon balances due from one bank to another, is a means by which large
amounts of capital are diverted from the extreme portions of the country to the
commrrcial and financial centres to the injury o f busmess generally. The province
of a bank is to lend money, and its proper duty is, by loans and discounts, to facilitate
and devc'op business in the neighborhood of its location. As a matter o f fact, under
the present system, banks are agencies by which capital is gathered in and sent away
to distant cities, there to be loaned on call and used for speculative purposes.
Complaints are made from all parts of the country that the bills of the national banks
are worn and defaced to such an ixtent as to be no longer fit for circulation. As
maDy new bank9 are soon to be organized under the law of the last seas! n ofCongress,
I respectfully lecommend that an appropriation be made and authority given tor the
issue of Dtw bills upon such paper and in such form as may be^Jesignated by the
Secretary of the Treasury. The Controller of the Currency, in his report for 1869,
recommende 1 the establishment of an agency in the city of New York, under the
18701
REPORT OF THE SECRETARY OF THE TREASURY.
423
control o f the national banka for the redemption o f their issues. The substance of
this recommendation eeems to me not only proper but necessary. The expense
should be borne by th» banks. Coupled with these recommendations I take this
occasion to say that the banking system of the country appears to be well managed,
and to answer reasonably the purposes for which it was established. It is, no doubt,
true that Treasury notes, representing an equal amount of the public debt without
interest, are the most economical circulation for the government; but it should he con
sidered that the banking institutions o f the country are agencies by which business is
established and fostered. Upon the whole the system of banking should be extended
only for the purpose of meeting the demands of business ; but when the demands are
urgent the concession should be made upon the ground that the prosperity of business
is more important than the mere saving o f interest arising from the circulation of
Treasury notes, excluding redeposits. The amount of gold and silver deposited at
the mints and its several branches during the last fiscal year was £80,408,788 1 0 ;
the coinage for the year was $24,636,011, and the value of gold and silver bars
stamped was $8,748,862 91. I respectfully ask the attention of Congress to the bill
prepared in this department, and submitted at the last session ; and to the accompany
ing report relative to the mints and the coinage system of the country. The bill was
prepared with care, and it has since been submitted to the criticism of a large number
o f practical and scientific men, whoss views have been published by authority of
Congress. During the year the several branch mints and assay offices have been
visited and examined by Mr. Knox and Dr. Lindermann. The assay office at Boise
City, Idaho, is nearly completed, and will require a small appropriation tor the com
mencement o f business. Provisions should be made for the redemption of the Ironze
and other tokens issued by the government. Tbe report o f the Commissioner of
Mining Statistics for the year 1869 has been printed Bince the close of the session in
July last, and that for the year 1870 will be made during the winter. The continuance
of the work appears to be a matter of national importance. The proportion of American
vessels engaged in foreign trade has not increased relatively during the year,
although there has been an actual increase in the entries of American vessels at
the ports of the United Slates amounting in the aggregate to about 13 ',( 00 tons.
Tbe total tonnage engaged in the foreign trade, entered at all of the ports of the
United States, has increased from 6,683 000 tons in 1869 to 5,967,000 tops in 1870,
but the proportion o f American tonnage remains, as in 1869, at thirty-six per cent.
Without undertaking to specify the means by which it is to be accomplished I cannot
overstate the importance o f such legislation as will secure ths revival of American
commerce.
LIGHT-HOUSES AND COAST SUBVEV.
The report of the Light-house Board sets forth in detail the difficulties which have
arisen in that branch of the public service from the operation of the fifth section of
the act of July 12, 1870, making appropriations for the Legislative and Executive
expenses of the Government for the year ending June 30,1871. The legislation
asked for by the Board seemed to me to be necessiry. The report of the Superin
tendent of the Coast Survey oives a brief but satisfai tory statement of the progress
made duiing the last surveying year.
IN TERIO R PORTS OF ENTRY.
On the 1st day of October last, regulations r>ere issued concerning the transportation
of merchandise from the ports of importation to certain other ports in the United
States wilhout appraisement or liquidation o f duties at the poit o f airival, agreeable
to the provisions of the act entitled “ An act to reduce internal tax, and tor other
purposes,” approved July 14, 1879. A copy o f the regulations will be transmitted
to Congress. In the nature of the cases, the regulations are stringent, but when ihe
railway companies shall have given tbe bonds required, and Ihe importing merchants
of the interior cities shall have made arrangements for the importation o f goods upon
the basis o f the act, I am satisfied that no serious difficulties will arise, either to the
railways, the merchants, cr the Government. Without doubt, the act increases the
424
REPORT OF THE SECRETARY OF THE TREASURY.
[D ecem b er,
opportunity for the introduction of foreign eoods into the country, in violation of
evenne law s; but the examin ition which I have given to the subject, in the preparaion of the regulations, leads me to think that the business can be safely conducted.
CUSTOMS, RECEIPTS
AND EXPENSES.
The appropriation for the expenses o f collecting the Customs revenue under the
act approved May 81, 1866, is at the rate of $4,200,0(10 annually, in addition to sueh
sums as may be received from fines, penalties and forfeitures, and from storage, cart
age, drayage and labor. Experience has shown that this amount is insufficient, and
a deficiency appropriation will be needed !at each session of Congress until the
permanent appropriation is increased. I have instituted a careful supervision in the
Treasury Department over this branch o f expenditures, and agents are employed
investigating the expenses o f the Custom-houses of the country for the purpcse o f
ascertaining whether the modes of business can be simplified and made more
economical, and also whether a reduction of the number of employees and,
salaries is practicable.
By this means some saving will be effected but it will
even then be impossible to reduce the expenses within the appropriation. From
1858 to 1866 the permanent appropriation was at the rate o f $3,600,000 per annum,
in addition to the receipts before enumerated as applicable to this branch of the
service. From 1856 to 1860 inclusive, the total receipts from Customs were about
$272,000,000, aud the expenses of collection were $15,879,000, or at the rate o f more
than 5^ per cent. The receipts for the year ending JuDe 30,1870, were $194,538,374
44, and the expenses $5,912,113 63, or not exceeding three and one-half per cent.
From 1858 to 1860 the revenue collected did not exceed an average of $50,000,000
a year, and the temptation to smuggling and fraud was much less under a low system
of duties than it is at the present time. At the principal importing cities of the
country it is necessary to employ a large force for the protection of the wharves and
water lines within or near such cities. It is also necessary to guard against smuggling
by the presence often of several officers upon and around the steamers and other
vessels importing large quantities of goods, while engaged in discharging their cargoes.
It is also apparent that the extensive line of coast on the Atlantic and Pacific oceans
and the Gulf of Mexico, everywhere furnishing opportunities for the introduction o f
goods in violation of the revenue laws, requires the presence of a large number of
skillful and trustworthy persons. The acquisition of Alaska, the establishment of
interior ports of entry, the accommodation of business by railways and steamers on
the northern frontier, add materially to the expenses of collecting and guarding the
revenue. I therefore respectfully recommend the increase of the permanent appro
priation tor collecting the revenue from customs to the sum o f $2 60(',000 for each half
year from and after the 30th day of June, 1870. A t several o f the important ports
there are two appraisers, whose powers are equal. I recommend such an alteration
of the law as wilt provide for one principal appraiser at each port, who shall be
responsible for the business of the office. The Treasury Department has the care o f
110 public buildings that are completed, and of seventeen more that are in the course
or erection, all of which had cost, on the 30th of June last. $36,9i 0,998 93.
The
appropriation for the repair and preservation of these buildings for the current year
is $100,000, a sum manifestly inadequate, being less than one-third of one per cent.
Unless larger annual appropriations are made, the buildings will rapidly deterioate
in value, and finally will need much larger repairs, or the erection of new ones in
their Ftead.
With the increase of population in the country, appropriations must
be annually made for the erection of post offices, custom houses and other public
buildings.
The preedit mode o f inaugurating these works seems to me unwise.
Appropriations are often made without sufficient information upon the sudject.
It
is true that, when a proposition is introduced into Congress for the erection of a
public building, the subject is referred to tha Treasury Department, and by the
Secretary to the Supervising Architect o f the Treasury, but it is also true that the
Supervising Architect lias only general information up in the subject, and in answer
to a sudden call, and without time for the preparation of plans and estimates, he
cannot give a safe opinion as t > the necessity or the cost o f the work. I respectfully
recommend that hereafter, when applications are made for the construction of public
1870]
REPORT OF THE SECRETARY OF THE TREASURY.
425
buildings the first step on the part o f Congress will be to instruct the Treasury
Department to make careful inquiry as to the necessity o f the work, and also prepare
estimates to be laid before Congress. This being done and the work authorized, it
would seem to me wise to make a single appropriation sufficient to meet the entire
cost, and then hold the Department and the Supervising Architect responsible for
the speedy completion o f the building substantially upon plans duly authorized and
within the estimates. I am satisfied that much waste of public money occurs, and
much complaint on the part of citizens arises when small appropriations are made
from year to year.
The inevitable consequence of the policy is that the pull c
works are injured in the process o f construction, and the expenses are largely increas
ed. The Supervising Architect of the Treasury states in his report, that the expen
diture authorized by law for the construction of the post office in the city of New
York will be inadequate, unless the character of the work is changed from the
original design. It seems to be due to the c ty of New York, for general and apparent
reasons, and in consideration of the fact that a most eligible site has been secured by
the co-operation, and in some degree at the expense, of the city, that the building
should not only be a fire-proof structure, but also of such design and workmanship
as to rank among the best public buildings o f the country.
REVENUE MABINE SERVICE.
" " A t the present time there are twenty-four steamers and ten sailing vessels attached
to the revenue marine service, the number having been reduced during the year by
the sale of two vessels of the latter class.
A t the third session of the Fortieth
Congress an appropriation of $300,000 was made for the construction of four steam
revenue cutters.
After proposals had been issued, and bids received which were
rejected, under the imprees on on m j part that the public interests did not require
vessels o f as large size as those far which proposals had been issued, I appointed a
Commission, by letter, dated Dec. 16, 1869, consisting of Capt. C. T. Patterson, of
the Coast Survey, Capt. Douglas Ottinger, and Capt. J. H. Merryman, of the
Revenue Marine, and instructed them to consider and report upon the character of
the vessels best adapted to the service. Final action in reference to the construction
o f the vessels authorized was delayed for the report of the Commission.
That
report was made on the 1st day of May, 1870. (Executive document No. 93, Senate,
second session o f the present Congress.) Upon the completion of the work o f the
Commission, proposals were again issued for the construction of the four vessels author
ized by law. Satisfactory bids were received, and on the 22d of July and the 22d
of August last contracts were made. The construction given by the Controller to the
fifth section of “ the act making appropriations for the Legislative Executive and
Judicial expenditures of the Government for the year ending the 30th of June, 1871,”
rendered the appropriation unavailable, and it therefore became necessary to notify
ihe parties to the cor tracts that they must be considered as null and void.
One of
the parties has asked to have his contract fcrmallv annulled, which has been dona.
I recommend a renewal of the appropriation of $300,000 for the construction of
steam revenue rutters, without limitation as to the number of specification as to the
size of (he vessels to be built. The report of the Commission shows that thirteen of
•he vessels now in use are either old, the or not adapted to service.
Ih e opinion entertained by me that the vessels in use were larger than the nature
irf the service required is confirmed by the report oi the Commission. They recom
mend that the number be reduced to thirty-two, and the aggregate tonnage reduced
from 9,208 tons to 7,'75 tons. They also state that it will be practicable upon the
proposed basis to reduce the total number of officers, pilots, petty officers, and men
Iron’ 1,266, the number then in service, to 1,061, and the actual expense of main
taining the system, not inclu Jicg aupropriations for the construction of new vessels,
from $1,446,490 to $913,639, making a saving ot more than $600,000 a year. The
report of the Commission is the result of a careful and comprehensive examination
of the subject by competent men, and while it is the present purpose of the Depart
ment to act upon it, I am of the opii I n that it should receive legislative sanction.
426
REPORT OP THB SECRETARY OF THE TREASURY,
[December,
On the 9th of July, 1869, 1 convened a Board o f Examiners, who werec harged, among
other things, with the examination of the officers of the Revenue Marine. The Board
is composed of Capts. Faunce and Slicer, of the Revenue Marine, and Capt. Patterson, of
the Coast Survey. The examination has uot vet been completed, as only a small number of
officers could be detailed ior examination at th; same time. One hundred and ten lieu
tenants have been examined. 'Ten first lieuten ints, nine second lieutenants aud six third
lieutenants were reported lor removal and have been removed. Toe vacancies tlius
created in the first and second grades were filled by promotions, an 1 the vacancies in the
lowest grade will be filled by qualified persons selected at large. Tne examination of the
remaining officers will be continued. The condition of the marine hospitals has been
improved during the past year. This result is largely due to Dr. J. S. Billings, of the
surgeon general’s office, who has visited nearly all of them, and through whose advice
many important changes have been made. No appointment has yet been made of a Super
intendent under the act of the last session. The authority therein granted to appoint a
Superintendent is desirable, although the salary does not appear to be sufficient. I, how
ever. recommend such an alteration of the law as will permit the President to detail a
surgeon of the army or navy to perform the duty of Superintendent, without any addition
to his pay other than his necessary traveling expenses. With such authority, the Depart
ment could have the benefit of the services of Dr. Billings, or some other competent
surgeon with less expense than would be involved ia a regular appointment, even with
the present salary. Five of the principal port3 of the country—New York, New Orleans,
San Francisco, Baltimore and Philadelphia—are without hospital accommodations, and
provision is made for the patients by contract with hospital or private parties. The War
Department is in possession of a very desirable.hospital at New Orleans, known as the
Sedgwick Hospital, and 1 earnestly recommend the passage of an act by which the building
may be transferred to the Treasury Department lor a marine hospital, and an appropri
ation made for the purchase of the land on which it stands. At the last session, tne atten
tion of Congress was called to the subject of transiering David’s Island, at New York,
from the War Department to the Treasury Department, for the establishment of a marine
hospital. This recommendation is now respectfully renewed.
THE
SEAL
FISHERIES.
In compliance with the act of Ju’ v 1,1370, in reference to the seal fisheries, proposals were
Issued, and bids received, for tiie exclusive right to the fisheries ior the term ol iweniy
years. The phraseology employed in the act warranted the interpretation that the contract
should be awarded to the Alaska Commercial Company if their proposition was as favor
able to the Government as that of any other party, and upon that basis the contract was
awarded to that Company. A copy of the contract and of the papers connected therewith
will be transmitted to Congress. About 86 ooo seal skins have arrived at San Francisco,
as the product of the year 1S69, on which the owners have paid $1 each, as required by
the sixth section of sa'ia act.
CIVIL SERVICE REFORM.
1 consider it my duty to call the attention o f Congress to the inadequacy and inequality
of the salaries of the officers in the Treasury Department, asfixed by law. The offices
recently established are supported by proper salaries, but the salaries attached to many
of those created at the organization of the Government are insufficient. As a temporary
means of alleviating the admitted evil Congress has from time to time, and for many
years, annually made appropriations, to be us d at the discretion of the Secretary, far
additions to salaries of officers in the Department. In the nature of the case, this is a
disagreeable duty for the Secretary to perform, is usually unsatisfactory to the parties inter
ested, and the result has not the sanction and support incident to a system of specified
salaries established bylaw . At, the present time the sum of $21,500 is‘ distributed by the
Secretary in his discretion. After a careful examination of the subject, I find that an ad
ditional appropriation not exceeding $16,000 a year, will b? sufficient to provide adequate
salaries for the officers of the Treasury Department. The act of 1853, in regard to the ex
amination of clerks, has been observed by the Dep .rtinent, and with b. ncficial results. It
is worthy ol consideration, however, whether it would not be wise to provide by law for
an examining board, the majority of whose members should not be officers ol the Depart
ment to which the clerk is to be assigned, in case ol appointment and approval. This system
snould also be extended to the principal Custom houses and revenue offices ol the country.
By such an arrangement a definite securi y would i*e taken for the character and quali
fications of clerks, as far as they can be ascertained or te-ted without actual service in the
discharge of duty. It is well understood, however, that no examination can furnish
security that the person examined will prove satis;actory upon trial, and there should always
be a speedy and easy method of removing such persons Ir m office. I do not, therefore, ac
cept the idea that ‘ the tenure of office by the clerks and employers in the Department
should be changed. Indeed. I believe that the present tenure of office tarnishes the best
security which the people of the country can have that the business of the Government
will be efficiently and properly performed. The work of the Treasury Department docs
not differ essentially from the business done in the banking I ouses and the merchants’
counting rooms, and there is no reason why the tenure of office should be permanent in oncase that docs not anply with equal torceinthe others. It does hat pen, practically, hat
there are in the Treasury Department, and every bureau and office ol it, men who have
been connected with the service for several years, and who possess all the knowledge
derved from experience and tradition that is essent al to the rer.ormance of their duties.
Excluding the employees of the Bureau of Engraving and rr.nting. and the messengers
1870]
REPORT OF THE SECRETARY OF THE TREASURY,
427
and laborers, there were 2,143 officers and clerks connected with the Treasury Department
at Washington on the first day of November, 1870, and o f these 1,4S9 were in office on the
fourth day of March, 1869, leaving 654 as the total number of appointments made since
that time.^ Previous to the war the business of the Department was so small that on the
first of March, 1861, only 433 persons were employed, and of these 57 are now in the service.
One has been in office over 50 years, two others over 40 years, onfe over 35 years, seven
over 30 years, one over 25 years, ten over 20 years, fourteen over 15 years and twelve
over 10 years. These statements show that the changes in the Departments are not so nu
merous as to deprive the service oi the knowledge derived lrom experience. On the other
hand, the introduction of new men secures additional energy and efficiency. Two errors
prevail in the community in connection with the subject. One is, that under a republican
government every man has a right to an office. This is in nosense true. The only right
is that of the people to elect and to have appointed to office persons best qualified to per
form the work. The other error is that offices in the Treasury Department are prizes,
which the young men of the country may wisely seek. Speaking generally, it is a misfor
tune to a young man who possesses even ordinary capacity lor business or labor to
remain permanently in the public offices of this city. It is, however, true that many
of the most valuable clerks in the Treasury are young men who are pursuing prolessional studies, or who, having completed the course, remain from one to four years
in the Department with the purpose, by industry and economy, of securing a small
amount of money with which to commence active life elsewhere. A system oi life
tenure would exclude all these men from the service, unless they chose to accept it as a
permanent pursuit, which in the main would be an injury to them and to the country. I
am also fully convinced that any more permanent tenure of office would materially impair
the efficiency oi the revenue system. There are many thousand men employed in the
Customs and internal revenue serviceT'urid however careful the preliminary examination
might be, the evils which now impair the efficiency would undoubtedly exist. No system
of examination could exclude ail those who are dishonest, or who, under the pressure of
necessity or the offer o f sudden wealth, might yield to temptation. It often happens—and
it would happen under any system—that men are found who are honest, temperate and
apparently capable, and yet lack the energy or the courage essential to the enforcement
of the Revenue laws, a duty which olten requires sagacity and a kind of intelligence too
subtle for discovery through formal questions. Men who are thus unqualified should be
removed from office, and this without an investigation, which, indeed, might furnish noth
ing tangible in justification <f the act. So, too, in Custom Houses or collection districts, a
branch of the service will fail to meet just expectations, although no dishonesty may be
traceable to any person connected with the office. In such cases the interests of the Gov
ernment demand a change, and a change must be made without a hearing of the parties
concerned. 1 may be warranted In saying, in this connection, that the evil of office-seek
ing, although great, is probably exaggerated in the public mind. It is true that there
are more applications for appointments to office in the Department than can be met, but
the number ot applicants who are well qualified who could pass any proper examination
is not usually very large.
Outside of the department, and in the several States and Districts of the country, the
number of applicants for local services does not often exceed three or lour to each office,
and occasionally there are not more than two who are really so presented as to be con
sidered in connection with the appointment.
In justification of the present tenure, and as a proper recognition of the services of the
officers and clerks employed in this department, I express the opinion that the business,
upon the whole, is not only done in a satisfactory manner, but that it will compare in accu
racy and efficiency with the business of the country generally, which i3 carried on by cor
porations or individuals.
TAXATION, REVENUE AND THE DEBT.
In my annual report of December last, I advised the continuance of the existing system
of taxation as an essential condition to the success o f the proposed loan—the circum
stance that war was declared between France and Prussia, simultaneously with the passage
of the Loan bill, put it out of the power of the Department to make the negotiation, as
had been expected.
The large revenues, however, of the Government continuing with
out material abatement until the present time, Improved the credit oi the country, enabled
the Treasury Department, by weekly purchases, to reduce the amount of surplus bonds
offered for sale, and contributed to depreciate the rnarkei value of gold.
1 also expressed ihe opinion that the settled policy of the country should contemplate a
revenue sufficient to meet the ordinary expenses of the Government, pay the interest on
the public debt, and from twenty-five to fifty million dol'ars of the principal aunually. The
reduction of the public debt, since the 30th day of June last, has been so great as to render
it certain that the total reduction for the present fisc 1 year will exceed $60,000,090. Thi
natural increase of the business of the country during the next eighteen months is likely to
be such as to show a surplus for the fiscal year ending June 30,1372, of about $40,000,000.
The principal of the public debt on the last day of November, 1S70, not deducting money on
hand, was $2,413,673,044 43. Of this amount, $395,269,237 03 was represented by United
States notes and fractional currency, not bearing interest. Tlie banks oi the country? acting
without the authority of existing Laws, will require about $393,009,000 of bonds to be placed
on deposit as security tor their circulation. Should the present system of lurnisliiug a papei
circulation for the country, partly by the Treasury and partly by the national banks, be con
tinued, ot the entire circulation be furnished by the Treasury or by the bunks, tlie credit ot
the United States will be the security for the redemption of tlie note:s. From this view oi
the policy of the country it follows that about $S0O,900,0O0 of tbe nubile debt will remair
428
RAILROAD EARNINGS.
\Decembe
unpaid, existing either in the form of Treasury notes in circulation without interest or in
bonds owned by the banks and held as security for the redemption of their notes; ami th it
only about $1,600,000,000 oi the principal of the debt is subject to payment. The financial
prospect, although highly favorable, is not such as to warrant important changes in the
revenue system at the present session of Congress; but should the result, during the coming
year, meet my expectations, it will be possible, at the December session of the Forty-second
Congress, to make a very material reduction in the revenues without impairing the ability
of the Government to make satisfactory payments of the public debt.
The reduction already made has been advantageous to the country, not only in the par
ticulars indicated, but in other respects hardly less important. There is much evidence
tending to show that no other event, since the conclusion of the war. has contributed so
much to the diffusion of republican opinion in Europe. The spread of these opinions stim
ulates emigration from Europe, and at the same time prepares the way for the establish
ment of free institutions on that continent, nor can there be any doubt that a policy accept
ing the debt as permanent would retard emigration from Europe, especially of the reading
and reflecting classes. Whatever arguments may be adduced, or whatever theories may be
advanced, the fact must ever remain that a public debt is a public evil.
It is especially burdensome to the laboring classes, and it is therefore in their interest to
provide lor the constant reduction of the existing national debt. This policy will not prevent
such changes m the revenue system from time to time as will equalize the inevitable bur
dens of our present condition, and within a comparatively short period the taxes may be
removed Irom many articles of prime necessity.
It is the occasion of satisfaction that no other nation ever passed through a great war
with so slight a shock to industry and business. Specific information and general intel
ligence from various parts of the United States show that all classes, and especially the
laboring classes, are in the enjoyment of more than average prosperity, whether tested by
the experience of this country or by the present condition of other nations. No reason can
be found, however, in the favorable condition of public and private affairs for neglecting
any proper means for equalizing and diminishing the burden of taxation, but it does justily
ihe statement that the nation can make provision for the public debt in the manner recom
mended, without embarrassing its industry or retarding its progress.
[Signed,]
GEORGE S. BOUTYVELL, Secretary of the Treasury.
RAILROAD EARNINGS FOR NOVEMBER AND FROM JANUARY 1 TO DECEMBER 1.
Railway traffic in the month o f November was generally large, and
the statements of nearly all the leading roads compare quite favorably
with the same month of 1869. There has b.en no extraordinary freight
movement, both the grain and pork forwarding business having been on
a lighter scale than usual, and the earnings may therefore be considered
as the result only o f the regular steady transportation business o f the
country. The tariff o f increased rates on freight and passengers to the
West, which has recently been adopted, was not put in force at a suffi
ciently early date to affect materially the November earnings. W ith the
higher rates now in force the prospect for the month of December seems
to be in favor of an increase o f earnings over the same month of last
year, though December is at best but a dull month, and no variation is
likely to be of large amount.
Considerable interest is manifested in
regard to the meeting on the 20th inst. of prominent officials represent
ing the several trunk lines running west from New York, to consider
the subject o f combining or “ pooling” their earnings. There is no indi
cation o f what the result may be, and in the meantime, holders of stock
will probably hope for such an arrangement, but the public will hope
that it may not be consummated.
Various rumors have been afloat; that the Pennsylvania Central had
completed its connection with New York, first by leasing the New Jersey
1870]
429
RAILROAD EARNINGS.
Central, and, that having been denied, that they had leased the Camden
and Amboy lines; at the date o f writing, however this is not confirmed.
EARNINGS FOR THE MONTH OF NOVEMBER.
Chicago & Alton..................................
Cleveland, Columbus, Cin. & Indp's.
Illinois Central...........................
Michigin Central.........................
Marietta & Cincinnati...............
Milwaukee & St. Paul...............
North Missouri...........................
Ohio Mississippi....................
Pacific ot Missouri......................
St. Louis, A ton & Terre Haute..
St. Louis & Iron Mountain.......
Toledo, Wabash & Western.......
1870.
$781,600
432,493
319,573
256,385
811.990
453,873
144,023
791,014
266,836
316,654
324,659
150 544
121,795
425,687
♦579,379
1869.
Inc
$535,366 $*226, *234
397,515
34,977
273.305
46, *268
219,435
36,910
814,413
27,577
418,419
5,454
131,479
12,544
801,195
248,836
18*000
298,027
18,027
298.708
25,951
189,351
80,938
40*857
3*23,377
102,310
837,388
Dtc.
10*181
38*807
266*009
Total................................ ....................................... $6,177,904 $5,897,752: $595,150 $314,997
For the eleven months of the year 1870 now elapsed, the amount of
gross earnings on ten roads named below has been $44,764,701 against
$39,696,922 for the same period o f 1869 ; thus showing an increase
o f $5,100,776, about one half o f which sum, however was on the
Central Pacific alone. It is gratifying to observe in regard to the earn
ings that in no case is any important decrease shown, but that all the
roads show a traffic which compares very welt with that o f the previous
year, when, it will be remembered that railroad earnings were very large.
Without any extraordinary circumstances to temporarily check the
current, the tendency o f railroad earnings must be towards increase, as a
natural result of the growth and prosperity of the country, and the great
demand is now for a strong and economical management on all those
lines which are well located, having good connections and a rich local
traffic, as is the case with tin. e fourths o f the roads named below. The
most remarkable developments o f prosperity within the past five years,
on some roac’ s which had previously been considered o f little or no
immediate value to stockholders, have been through the acquisition of a
powerful management, rather than through any sudden increase o f
income from traffic or other sources. N o road can make so much money
that an incapable or dishonest directory may not succeed in squander
ing it if they are allowed the opportunity.
EARNINGS FROM JANUARY 1 TO DECEMBER 1 .
1870.
1869.
Inc.
Central Pacific..................................................................$7,709,107 $5,195,690 2,61?,508
Chicago & Alton.**..,............
4,425,735 4,357,723
68,002
Clevel’ d, Columbus, Cinn. & Ind’p’ s............................. 2,995,264 2,871.904 123,360
Illinois Central .............................................................. 8,096,260 8,125,122
Marietta & Cincin ati...................................................... 1,277,495 1,281,653
Milwaukee & St. Paul............................
7.590,669 6,651,946 038,723
North Missouri.......... ..................................................... 2,577,763 1,821,257 756,506
Ohio & M;ssissippi...........................................................2,837,664 2.660,652 177,012
Pacific of Missouri....................................................... 3,208,569 2,913,014 295,655
Toledo, Wabash & Western..................................... .. 4,010,176 3,818,052
228,113
Union Pacific....................
7,039,274
Total (not including Un. Pac.)„
.$44,761,701 *39,696,922 $5,160,776
Dec.
r
28,802
4,158
$33,020
t
430
[D ecem ber,
PUBLIC DEBT OF THE UNITED STATES.
THE DEBT STATEMENT FORJECEMBER, 1870.
T h) following is the official statement o f the public debt, as appears
fro ii the books and Treasurer’s returns at the close o f business on the last
day of November, 1870 :
D ebt b earin g interest in Coin.]
Character
or l88us.
W hen p aya ble.
R egistered.
5’s, B on d s...........Jan. 1, 1874.......................
$6,020,000
{i’s, B o n d s ......... Jan. 1,1871.......................
3,945,0'K)
6’s o f 1881..............Jan. 1 1381....................
13,367,000
6’s, B ’ dsO reg.,’81.July 1,1881......................................
6’s o f 1881............ lu ly 1,1881...................... 120,31b,450
6’s, 5-20s, 1832....... May 1,1 82...................... 112,291 95»
52,037,100
6’s o f 1881..............Ju y 1,1881....................
5’s, 10-40’s ..............Mar. 1,1904.................... 132.717,750
6’s, 5-20’s, 1S64....NOV. 1. 18S4.....................
3,123,600
6’s, 5-20’s, 1864... .N o v . 1,1884.....................
55.445,000
« ’s, 5 20’s, 1865....N ov. 1, 1835.....................
56,276,100
5’s, 5-20’s, 865....J u ly 1,1885.....................
72,97'.,250
6's, 5-20’s, 1865.... Ju lv 1, 1887.....................
82.924,800
9,943,500
6'a, 5-20’s, 1865....J u ly 1,1888.....................
A ccru ed
Interest.
$416,666 67
91375 <0
4,410,000 00
460,375 CO
18.415.000 CO
23.625 00
945,000 00
4.732.952 50
189,318,100 00
2,481,046 .0
496, 07.300 00
75.0
0,000 00 .1375,000 (O
194,567,300 «0
2,4: 2.09) :5
15.618 10
3,1 3 600 00
5 ’5,708 75
105,141,750 00
933,997 25
186,799,450 00
6,7
.7,733 75
270,309,350 00
8.496,150 00
3)9,846,000 00
39,667,250 00
991,681 25
T otal.
O utstanding.
Coupon.
$13,980 0. 0
465.000
5,C4S 000
945.000
63,971,650
383.914,350
22,912 900
61,849,550
$ 20 ,000,000 00
49,685,850
130,523,350
197,333,100
256,921,200
29,723,750
A ggrega te ot debt b earin g inter, in coin $721,461,400
$1,222,283,700
$1,943,752,100 00
Interest due and unpaid.......................................................................................................................
T o ta l interest.
$30,234,520 92
10,419,930 15
$40,654,451 07
D ebt b earin g in terest in L a w fu l M o n ey .
3’s, Certificates. .O n demand (interest estim ated )..............................................
3 ’s, N a v y pen. f d.Interest on ly applic. to pay. o fn en sio n s.................................
4’s Certificates o f indebtedness, Septem cer 1 1875..............................................
$45,050,000 00
14,000,000 00
i78 000 00
$182,584 34
175,000 00
6,780 00
A g g r e g a te o f debt b earin g interest in law fu l m on ey...................................
$59,728,000 00
$364,364 34
D ebt o n w h ic h interest lias ceased since m aturity*
6’s, B on d s..............M atured D ecem ber 31,1862 ...........................................................
6’s, B on d s..............M atured D ecem b er 31, 1867..........................................................
6’s, B on d s..............M atured July 1, 1868 ........................................................................
5’s, Texas indem .M atured D ecem ber 31,1864..........................................................
V a r., Tr^y n otes.M atu red a t various d a t e s ............................................................
8^ 5 K ’ 8,T r ’ y n ’es.Matured March 1,1859 ...................................................................
6’s, T reas. n otes.M a tu red A p ril and M ay, 1863......................................................
7 8-10’s, 3 y e a r s .. .M atured A u gu st 19 ana O ctober 1,1864.................................
5’8 , 1 & 2 y e a r s .. .M atured from J an. 7 to A p ril 1, 1866.......................................
6’s, Certir. o f ind.M aturea at- various dates in 1866...............................................
6’s, C om p. int. n .M atu red June 10,1867, and M ay 15,1868.................................
4 ,5 & 6’s, Tem p. 1.M atured O ctober 15, 1866 ..............................................................
7 8-10’s, 3 y e a r s .. .M atured A u g u st 15, 1867, and June 15 and J uly 15,1868
A g g r ’te o f debt on w hich int. has ceased since m aturity.
$6,000
2.150
24,900
242,000
89,625
CO
00
00
00
35
00
00
00
00
00
00
00
$360 00
741 00
1,281 00
12,10 0 00
2,938 76
108 00
195 00
852 30
12,266 28
313 48
880,111 C4
7,414 24
19,792 14
$3,311,087 35
$438,503 21
2,000 00
3,200
23,350
223,882
5,000
1,995.920
180,810
542,250
D ebt bearing n o interest*
A uth o rizin g acts.
Character o f issue.
A m t . ou tstand.
$102,321 00
J uly 17,1861 and F e b . 12,1862..............D em and n o t e s ............................................................. ............
F e b . 25 & J uly 11, ’62, & M ar. 3, ’63 . .U . S. legal-ten d er n ote s.......................................................... 856,000,000 00
J uly 17,1862................................................F raction al cu rren cy .............................................................) on
Q, R aq
M arch 3,1863 and June 30,1864..........Fractional c u r r e n c y .............................................................$
us
M arch 3,1863...............................................Certificates for g o ld d ep osited ........................................... 16,582,620 00
A g g r e g a te o f debt b earin g no in te re st.............................................................................................$411,851,857 08
R eca p itu lation .
D lB T
b e a r in g
INTEREST IN C o in — B onds at 5 p. cent.
B onds at 6 p . cent.
T o ta l debt bearing interest in c o in ....................
D b r t b e a r in g In t e r e st in La w f u l M o n e y —
Certificates at 3 per c e n t .....................................
N a v y pension fund, at 3 per c e n t.....................
Certificates at 4 per c en t......................................
T o ta l debt bearin g interest in law ful m o n e y ................ .............................
D EBT ON WHICH lN T . HAS OBASED SINCE MATURITY.....................................
A m ou n t
O utstanding.
$218,977,300 00
1,724,774.800 00
Interest
$1,943,752,100 00 $40,654,451 07
$45,050,000 00
14,000,000 00
673,000 00
$59,728,000 00
3,341,087 35
364,364 34
438,503 34
1870]
43 L
THE GOVERNMENT OF GREAT CITIES.
D e b t bkartn g no In t e r e st —
D em and and legal tender n otes.........................................................................
Fractional curren cy................................................................................................
Certificates o f gold d eposited...........................................................................
T o ta l d eb t bearing no interest.
$356,102,321 00
30,166,916 08
16,582,620 00
$411,851,857 08
T o t a l ...........................................................................................................................$2,418,673,044 43 $41,457,818 65
T o ta l d eb t, prin. & int., to date, including interest due n ot presented lo r paym ent. $2,460,130,363 08
A
Trsasu ry—
C oin ...........................................................................................................................................................
C u r r e n c y ................................................................................................................................................
m o u n t tn t h e
$97,368,577 81
28.453,290 62
T o ta l...............................................................................................
$125,621,868 43
D eb t, less am ount in the Treasury......................................................................................................
2,334,30s,494 65
D eb t, less amount in the Treasury on the 1st u ltim o ................................................................... $2,341,784,355 55
Decrease o f debt during the past m on th ...................................................................................
D ecrease o f debt since March 1, 1870..........................................................................................
7,475,860 90
$104,019,982 52
R o n d s issued to tlie Pacific R a ilro a d C om p an ies, In terest payable in
L a w fu l M on ey.
Character o f Issue.
Union P acific C o ................................................
Kansas Pacific, late U . P . E . D ..............
Siou x City and Pacific.....................................
Central P a c ific ....................................................
Central Branch Union Pacific, assignees
o f A tch ison & P ik e ’s P e a k ...................
W estern P acific...................................................
T o ta l issued,
In terest
In terest
In terest B alance o f
A m ou n t
accrued
paid b y
repaid by in te’t paid
outstanding, and not
I'n ited
t r a n s it io n by United
yet paid.
States, o f m ails,& c. States.
$27,236,512 00 $ 80,912 80 $3,713 371 05$1,434,952 33 $2,278,418 72
6,303 000 00
157 575 0) 1,212,993 1)9 724,823 67 488,169 42
1,628,320 00
40,708 00 194 207 89
396 J8 198,81181
25,881,000 00
647,025 00 3,261,767 84 241,6S8 70 3,020,12914
1,600,000 00
l,970,0i0 00
40,000 00
49,250 00
301,808 26
131,197 36
7,401 92
8,281 25
294,406 34
122,916 11
64,618,832 00 1,615,470 80 8,815,315 49 2,417,493 95 6,397,851 54
THE GOVERNMENT OF GREAT CITIES
The problem how to govern we'I the crowded population of a great
city is one of the most difficult now before thinking men. It does not
attract attention only in the United States, but on the continent o f
Europe, also, it has been the subject of close study both of philosophical
theorists and of practical statesmen
The importance o f it is easily seen.
The principal cities o f the world are growing, in these days far more
rapidly than the country around them. The tendencies o f our civiliza
tion are to stimulate their growth. As industrial arts improve, as agricul
ture becomes more productive, as all the labors which are the fundamental
supports of life come to require fewer hands, men a^e crowded together
for manufactures and trade, and, with the natural increase o f the class
which has leisure and follows intellectual pursuits, gravitate towards
the largest masses o f population.
The part, also, which great cities play in the affairs and destinies of
the world is far greater than they could claim, merely from the pro
portion of the whole people who live in them. That “ Paris is France”
may no*, be literally true, nor that Boston is Massachusetts; but no one
can doubt that France is much more under the control o f Paris than
under that of twice the same number o f people anywhere else in that
country; nor that the intelligence, opinions, character and history ol
Massachusetts are better represented by Boston than by any cW sr part
432
the
government of great
c it ie s .
[ December ,
of tlmt commonwealth.
Moreover, cities require more government—
that is, the work o f maintaining civil order is far greater in them than
is needed elsewhere.
A crowded population is filled with excitement
and temptations. It is always a storehouse o f wealth, and thus a source
of corruption and an incentive to crime.
Another important fact in this connection is that the history o f great
cities, on the whole, shows in their government a degen3racy that may
fairly be called progressive. It was much more satisfactorily conducted
many generations ago than it is now.
During the middle ages there
were in Europe free cities, some of them of great size, whose municipal
administration seems to have been the political success of the times. The
government of great nations was then commonly mismanaged, and almost
always conducted for the benefit o f particular persons, not o f the whole
community. But that o f several great cities was in reality a common
wealth, in which every citizen had his rights respected and enforced,
and in which the laws were honestly obeyed.
In the free trading cities
of Italy and in those o f the Low Countries we find instances in which
the solid burghers were guided by a patriotism and public spirit which
would do great credit to any community now, and in which order was
preserved, property protected, and the honor and credit of the community
maintained. The citizens were accustomed to independent action and to
free political discussion ; they thus obtained an education very similar to
that which our free political life gives to our citizens; and they applied
all the fruits o f their culture and experience in the management of their
own little commonwealths. These cities became, in many instances, homes
and refuges o f freedom, and centres o f vast political movements. But,
at a later day, most of these fell under the control of sovereigns who ruled
great kingdoms, and not one o f them long maintained its intellectual or
political importance; or, at best, its rapid growth and free, thoughtful
life.
But the form of city government, and that with which we have to
deal in this country, is the organization o f cities which are themselves por
tions and members of greater States, where the citizens o f the whole State
are free, and govern themselves by their own laws, but where every
member of the State, whatever his home, regards the government o f
the city as something in which he too has a share. The great cities
the United States are generally organized under what are called “ char
ters,” granted by the whole community of which they are a part.
The
people o f the United States make their own constitution ; the people of
the State of New York do the same ; but the fundamental law of this
vast city is not made by its citizens, but is imposed upon them from with
out. The citizens o f great cities are treated as the wards o f the State.
1870 J
THE GOVERNMENT OP GREAT CITIES.
433
It is now quite evident that none of the modern forms o f city govern,
ment ara a complete success. Monarchs have always been opposed to vast
municipal growth and to municipal freedom, because both are dangerous
to their power.
Cities have been their favorite scene of oppression,
exorbitant taxation, and of all forms of open and secret tyranny. The
absurd and destructive methods they have ignorantly or wantonly aJo| ted
for supplying their treasuries have had their worst effect on cities, in retard
ing their growth as well as in checking their intellectual life. Paris,
Vienna, St. Petersburg and Madrid are cities wide t have flourished for
ages as seats of despotism, but whose real glories have been crushed
or impaired by tlieir rulers, and in which discontent and the spirit o f
rebellion have always been in proportion to intelligence and prosperity;
Their city governments have been more or less merged in the govern:
ments of the States to which they belong, and all that imperial wpalth
and luxury have done for their outward magnificence and for the idle
classes has been sadly paid for by the degradation of the people in
morals, in politics, and in industrj-.
l aris, under Louis X I V . was
the model of a city ruled by a national despotism, and from the cruel,
lavish wantonness of the highest life to the grovelling misery and fierce
despair of the lowest it was one great prophecy o f the revolution to
come. It is not with such results as this that our American cities are to
be compared, and yet, in very many o f them, the work done by the
municipal government, falls as plainly short o f our high standard as that
of despotic monarchies in the last, century fell short of protecting quiet
industrv from insolence and outrage. W e demand of our city authorities
the careful and universal preservation of civil order and protection against
crim e; but we also demand much more: public improvements o f great
cost, extending through every street and to every house,- the improve
ment of rivers and harbors with docks and bridges; or public places
and squ ires, with markets, fountains and statues; the care of the public
health with the use of every device of science against pestilence; the
suppression and prevention of a thousand nuisances, no one of which was
regarded a hundred years ago as other than the common lot o f man ; and,
with many other functions, the administration of the immense funds which
are necessary to support them a ll; and the fact stares us in the face that
under the plan of despotism, even when all these things are done tolerably
well, they are done at the cost o f the free life o f the people; and that
under the plan of charters and o f State supervision, as practiced among us
they are not done tolerably at all.
The evil is a general one. W e hear more o f the defects o f city gov
ernment in X cw Y ork than elsewhere, because X ew York is the largest
city we have. But a careful examination of their cities will show that
3
434
THE GOVERNMENT OF GREAT CITIES.
[December,
New York is not an exception. Philadelphia and Brooklyn are perhaps
quite as corruptly and inadequately governed as New Y o ik .
New
Orleans and Cincinnati rival it clearly. Chicago, by the testimony of its
best citizens, was very recently worse governed than any o f them. And
if we consider the attempts that have been made to reform city govern
ments, we shall see one general fact in them a ll; that no practical reform
in city government has ever been wrought by charter or by State legisla
tion, but only by the free action of the citizens themselves. The most
conspicious instance is that of Chicago, when, by the moral force o f the
people, the whole coriupt structure of the city was recently swept away
at the ballot box, and the best citizens were called to fill the municipal
offices. But every attempt, and they have been many, to reform the gov
ernment o f cities by acts o f the legislature, and by new charters, has
utterly failed. Illinois and Pennsylvania have failed as completely as New
York.
The lesson of all these facts is one and simple. The true solution o f
the problem of city government is to be found jurt where the true solu
tion o f every problem o f government is found— in the just principles of
republicisam, that of unlimited trust in the people. Power must not
be withheld from them, through any fear that they will abuse it. They
may do so, but not half so basely as it will be abused if it is placed in
other hands.
It is the complication o f the city government of New
York, the want of simplicity in administration, the absence o f direct res
ponsibility, the division of executive power and accountability among
many men or boards, unknown to the people, the impossibility of
knowing where to strike an abuse or in whom to punish it, that were
introduced by the first Reform Charter of 1857, from which all the worst
corruptions o f this city take their date. Admit that there was a bad
mayor then, and that the Legislature merely wished to curtail his pow er;
yet however good the motive, the work was most pernicious. A mayor,
however bad, who directly represents the people, who is known to them
as their agent and the possessor o f power, will never venture to abuse
that power as it is sure to be abused by an indefinite and little under
stood system o f board upon board and checks upon checks, in which no
one is known to the people as possessing power, and in which no act can
be traced by them to its responsible source.
Give entire independence to great cities in municipal affairs, as (o States
in their own domain, and they at once rise in the scale o f political impor
tance and respectability ; the same men who now scorn to take a part in
city government become eager for the honors which are given to the fore'
most citizens; the wealth,intelligence and character o f the people finds
expression in their institutions and their administration. In short, the
1870]
NO INFLATION FROM THE NEW YORK BANKS.
435
only perfect government ever yet maintained in great cities has been
in those which, for internal affairs, formed independent commonwealths
of their own, and in which the local laws and authorities, in reality,
came from the people themselves, and not from the government o f some
larger state. Every improvement that is to be made in our system, then,
is likely to be made by moving in this direction ; by abolishing the leading
things of “ State charters,” in so far as they are not demanded or desired
by the citizens, and by committing the whole work of self government
to the municipality. This is the only method o f reform which has never
yet had a fair trial in our country.
NO INFLATION FROM T llE N EW BANK NOTES.
Notwithstanding the objections urged in some quarters against the
opinions frequently expressed in the M a g a z in e that the Currency bill of
July last would not, for some time to come, have much effect in expat ding
the circulation, the facts so far have confirmed that opinion ; and the gold
speculators, by whom it was denied, have had but small success in their
manipulations for advancing the premium. There are several reasons why
the anticipated inflation is delayed. The new banks are not organiz'ng
very rapidly, the business area of the country is expanding, and the active
movements of our interior exchanges are receiving so large an increase
every year that the volume of currency they require is greater now than
ever before. Hence an addition of currency, which would have caused
mischief two years ago, will now be less appreciable, especially dming the
activity o f the fall trade, when so much more currency is wanted for the
legitimate business of the country.
In view o f these facts, it is not
surprising that disappointment has overtaken the speculators, who were
so sanguine a few months ago that gold would rise with great rapidity
this fall, and that the other financial symptoms incident to currency
expansion would before now have been developed.
Their error ha3
led some persons to revive the exploded theory that the volume o f
the currency can be enlarged with impunity, and that great additions can
be made to an irredeemable paper cutrency without either deranging
the money market or depreciating the standard of the circulation. These
mistakes in practice and in theory have caused heavy losses to not a few
of the shrewdest men in W all street. Hence we are reminded how
imperfect is the general apprehension of the true nature of the currency
and of the simple laws by which it regulates its movements. A glance
at the Currency bill, from which so much speedy inflation was predicted,
should have served to refute the prediction. The bill, it is true, adds 79
millions to the existing mass of National bank notes, and raises the
436
no
in f l a t io n
from
the
new
tork
banks.
[December,
authorized aggregate from 300 millions to 354 millions. But these new
notes cannot be issued without considerable delay. In tact, during the
past four months there have been but about four millions of new capital
added to the National Bank aggregates. If the inducements offered have
not been found strong enough to attract more capitalists, and to stimulate
the organization o f a greater number of new banks, we may be quite
sure that, except some changes be made in the law, the danger of early
expansion of the currency from this source does not promise to give much
help to the schemes of the gold speculators.
But, secondly, these gentlemen should remember that the 79 millions
o f new bank notes are not to be issued without some corresponding con
traction. A s the new notes are issued from month to month, and after
they are issued, an equal amount o f three per cent certificates of indebt
edness will be called in and paid until the whole o f the 45 millions has
been cleared away.
It is not easy to foresee the exact order in which
the various forces thus set in operation will strike the money market.
The issue of notes by itself would tend to expansion, but the culling in of
an equal sum in greenbacks or in their equivalent— the Clearing House
certificates— would tend to contraction.
Much depends, too, upon the
time when the movement takes place.
In the Summer or at other
seasons when the currency is inactive the expansion would be most felt
while in the Fall and whenever business is active any considerable con
traction of greenbacks or their equivalent would be almost intolerable, for
experience shows that greenback contraction in busy times is imperfectly
compensated by expansion o f bank notes, which cannot be used for
bank reserves or for Clearing House balances.
However this may be,
enough is evident to show that in the bill before us the elements of con
traction are quite prominent, and perhaps more active and irregular
and dangerous than the elements tending to expansion.
T o all this it is replied,first, that the three per cent certificates may not
come in as fast as they are called, and that the banks may prefer to keep
them even after the interest is stopped ; and, secondly, that the law provides
that nearly nine millions o f notes may be issued without any correspond
ing withdrawal o f greenbacks or three per cent certificates. This is true.
And both these points are worthy o f consideration.
But we may be
well assured that from neither o f these sources can much relief be
promised to the money market until the law has been for some time
in operation.
And, moreover, there will by that time be a growing
apprehension among the Eastern banks about the 25 millions of circulation
which they are required to give up for the benefit o f the new banks in
the W est and South.
There is, therefore, but little ground for surprise that symptoms o f
1870]
THE NOVEMBER ELECTIONS.
437
inflation and expansion have not developed themselves in Wall street and
elsewhere in consequence of the new bank bill.
That measure will
undoubtedly cause alternate enlargement and contraction in the current
o f the circulation, but from all that appears these tidal changes will come
on so slowly that no great trouble may result. But is it certain that the
79 millions of bank notes to be added to the circulation will be more
efficient than the 70 millions of greenback ceitificates and bank notes
which are to be withdrawn therefrom ? This awaits the test of experi
ence, for it is a cardinal principle of financial science that the expansive
force of paper money is to be computed, not simply from its volume, but
from its efficiency also. If the new national bank notes which are about
to pour themselves into the current o f our circulating money are not
more efficient than the mass o f currency we remove to make room for
them, then it is asked what permanent inflation can result? Another
point connects itself with the amazing activity of the National commerce
and the rapid growth of our internal trade. It is urged that for this com
merce and trade the amount o f currency required is new at least 100 m il
lions more than four or five years ago.
Consequently the argument claims
that our currency will be relatively the same as if it had been reduced 90
millions, even should 9 or 10 millions of new extra notes be issued by
the National banks.
Our best authorities, we believe, by no means assent to the proposition
that so large an amount as 100 millions ot currency is legitimately
absorbed in doing the business of the country, in addition to what was
used for that purpose in 1806 ; but still there is little doubt that forty or
fifty millions of greenbacks have found their way to the South and
W est, where they for the most part remain, and will perhaps never
return here except as mutilated notes, to be replaced by new greenbacks.
This absorption has certainly bad the effect of diminishing the excess
of currency over its legitimate volume.
And the speculators for an
advance in the gold premium who rely on the expansion of the currency
as one of the factors in their calculations, will do well to give to this fact
all the prominence it demands.
THE NOVEMBER ELECTIONS.
Now that the political character o f every State Government and of
Congress is determined for some time to come, a few practical reflections
upon the results of the “ campaign ” recently decided will be of use. To
a certain class, indeed, the only “ results” o f an election which can
justly be called practical are the “ spoils” of office. These are either
lost or won, and there is an end o f their interest in the matter. But
438
THE NOVEMBER ELECTIONS.
[December,
there are others who will be eager to understand how each temporary
struggle for political power affects the prospects of the country at large.
The most striking change effected by the State elections of this year
is in the National House o f Representatives. It is not yet possible to
give the exact strength of parties in ttie Congress which is to assemble on
the fourth of March next; but it is quite certain already that the party
in power, instead of having much more than two thirds of the whole
House will have much less, and its preponderance may be reduced to little
more than a bare majority. The Republicans will, of course, still havo
both houses, and the Executive is theirs to o ; so that they, as a party,
will continue to be responsible to the country for the character of the
legislation of Congress and for the administration o f the laws. Y et the
change is a very important one, as will be apparent to any one who has
studied the history of any legislative body where the opposition is a very
small minority, or who will recall the history of Congress since it became
so entirely representative of one party.
In times of great national danger or effort, it may be desirable to
have an overwhelming majority o f the legislature in perfect harmony
with the Executive. The power to overbear all factious opposition may
then be important. But such a majority always involves danger. It
makes the minority powerless, and therefore, too often, useless, if not
entirely reckless of its duty, for the want of any responsibility. It too
often makes its own leaders arrogant, and always tends to attach them
too strongly to party interests and ends, as distinguished from national
Ones. For legislative leaders are practically responsible, rot like the
Executive, to the nation as a whole, but to the party or faction to which
they belong. More than all this, such a majority tends to reduce the
Executive itself to insignificance. In our system, the President is part of
the legislative power, since laws must be signed by him. If he will not
sign a bill, it can only be made a law by two-thirds of both houses; and
when parties are, as usual, divided with approximate equality, no one
party in the legislature can alone override the opposition both of the
minority and of the Executive. But when nearly the whole of Congress
consists o f members of one party, there may be at least a temptation to
press the interests of faction, even against the President; and circum
stances may easily be imagined in which such a majority might be led on
by somewhat reckless men, even to the extent o f removing the Chief
Executive for his political acts or convictions, or of forcing him to obey
their dictates. W ithout assuming so extreme a case as at all probable,
it remains true that an organized party in undisputed possession of the
whole power of Congress, constantly tends to weaken the Executive;
while the management of the Government in such a way as to keep the
ajority compact and earnest in its support, tends constantly to corrupt it-
1870]
THE NOVEMBER ELECTIONS.
439
In these respects, there is something gratifying in the simplo fact
that in the next House of Representatives there will be a nearer approach
to a balance between parties than for several years before. I f we
look further and examine the details of the elections in different parts of
the country, we shall find that there are two characteristics which may be
said to belong to this contest throughout th eU n ior. ’.'he first o f these
is the very unusual number of independent or “ bolting” candidates,
and the disposition, when no open “ bolt” was made, to “ scratch”
regular nominees; showing a serious weakening of party lines. W e can
remember no election since 1860 in which there has been so little unifor
mity in the votes received in each district by the several candidates of the
same party. This has been just as marked in Illinois, Maryland and
Massachusetts as in New Y o rk ; and it proves that there is a growing
reluctance among voters to be led or driven to the polls in masses.
The simple, broad questions which have so long divided the two parties are
no longer the only things considered. New issues are arising in which
the two organized parties no longer fully and fairly represent the two
sides; and many a voter who regards the old issues of 1860 and 1864
as settled and “ dead,” votes now with reference to these new issues, and
accepts from either party the candidates whom he thinks most likely to
carry out his views upon them.
The other characteristic, now almost as plain as the former, is that the
new issues, growing up into public notice everywhere, are entirely differ
ent in their nature from those which have of late divided parties. They
are no longer questions of feeling and prejudice, questions of sections,
classes or race, but are questions o f opinion or scientific judgment, ques
tions, in short, o f financial and economical science. The best reform of
the civil service, the method of adjusting the tariff and the tax laws, so as
to meet the public dues and wants with the least burden on the people,
the regulation of the currency, of banks, of the great national lines of
railway, and of State corporations in general; these and such as these
are the questions which are now rapidly coming into public attention
more prominently every day. It is too soon to discuss the probability
of a nevi division of parties upon economical principles. The difficulties
in the way of reconstructing great political organizations are immense,
and will not easily be challenged by experienced statesmen. But how
ever this may be, it is certain that these questions will occupy the minds of
public men and the attention of all thoughtful people to a very great
extent fur some years to come. A nd it is certainly a great advantage to
the country that political excitements of a fiercer character, involving
stronger passions and bitterer prejudices than these, should, by any
means, be supplanted and forgotten.
440
RAILROAD EARNINGS.
[December,
RAILROAD EARNINGS J O R OCTOBER, AND FROM JANUARY 1 TO NOVEMBER.
The reports of October earnings received from several o f tbe oldest
and best known lines o f railroad are not particularly favorable— for
instance, tbe Illinois Central shows a decrease of $£2,235, Ciiicago and
Alton a decrease of $20,445, and Milwaukee and St. Paul a decrease of
$131,739, and all o f these roads are working a greater mileage than in
1869. On the other side, the Ohio and Mississippi shows an increase of
$27,143, and Toledo, Wabash and Western an increase of $28,925.
Among the several companies whose stocks are ltss prominent in the
market, the Central Pacific shows an increase o f $225,158, Pacific of
Missouri $12,130, St. Louis and Iron Mountain $33,198, and other
various differences seen in the table below.
Many o f our readers who have been accustomed to watch with interest
tbe monthly statement of Railroad earnings in the M a g a zin e , will be
much surprised to find that no report for last month is made of either
tbe Chicago and Northwestern or the Chicago and Rock Island roads,
and it will probably be learned with regret that these prominent companies,
whose slocks are such favorites at the Board, will no longer be able to
give to the public their usual reports o f weekly and monthly earnings,
in consequence of the arrangement recently made for the consolidatijn of
certain earnings, by the Burlington & Quincy, and Rock Island & North
western roads. It is to be hoped, however, that the monthly statements
will be published as soon as they can be ascertained, although they may
be several weeks later than usual. There was a time when tbe monthly
earnings of New York Central, Hudson River, Erie, Reading, Michigan
Southern, Fort Wayne, Cleveland and Pittsburg and other roads, were
regularly given to the public, but that would seem to the stock operator
of the present day, to have been a golden age of railroad information,
and that we are in this respect rapidly approaching the dark ages, for
Railroad Directors now certainly “ love darkness rather than light,” we
trust not for the same reason which was formally alleged o f those similarlv inclined. It is undoubtedly an advantage to parties who have
control of the affairs of a railroad to have an exclusive knowledge of its
financial situation, and the amount o f its earnings from month to month,
they have thus an opportunity for dealing in the stock with a certainty of
profit which no outsider can possibly obtain. But on the other hand, it
is against the common law theory, for a corporation, which is supposed to
be a mere creature of legislation, and to be responsible to the govern
ment for all its operations, to conduct its affairs privately, concealed not
only from the public but from its own stockholders. Suppose that a party
owning a hundred shares o f the stock o f one of these companies applies
1870]
441
RAIDROAD EARNINGS.
at its office for information as to the present status of his property, partic
ularly as to its earnings and expenses, what reply would he get? Merely
a polite refusal, and what his shares are worth from time to time it is
impossible for him to find out.
The immense growth o f Railroad Corporations during the last few
years, through consolidations, extensions and completion of entirely new
lines, with stocks and bonds outstanding, amounting in some cases to
^100,000,000, has proved more fully than ever befo e, the necessity that
they should be responsible to the public, from whom their whole profits
are derived, and by whom their right to exist at all, is granted.
The right of a legislature to call for reports at stated periods from its
Banks, Insurance Companies, Savings Institutions, &c., is fully exercisecb
and there seems to be every reason why the same practice should be
extended to Railroad Companies, and we would still advocate, as we
have previously done, the plan that a financial statement should be
required o f every railroad company once a month, or at least once a
quarter, showing the amount o f stocks and bonds outstanding, the earnings
and expenses for the previous month or quarter, and any other facts
which might be necessary to show the real condition ol the Corporation’s
affairs.
E AR N IN G . FOR THE MONTH OF OCTOBER.
Central Fncific...................................
Chicago & Alton.........................
Cleveland, Columbus, Cin. & Indp a
Illinois Central ..........................................
Kans s P acific...................................
Marietta & Ur cinn t i......................
Milwaukee Sr- St. Paul......................
North Missouri ................................
Oh.o «» Mississippi...........................
Pacific ot Missouri ..........................
St. I onis & Iron Mountain.............
St. L- uis. Aten & Tetre » aute.......
Toledo, Wabash «ft Western.. .......
Union ia cific.....................................
Total.......... .................................
1S70.
$304,f00
463,212
339.239
862,l'il
313 337
153,631
903,313
235.240
355,187
341,373
127,(69
*157.986
455,293
+667,931
Inc.
1S69.
$579,642 $225,158
438,6 8
32,475
306.764
914,406
62,0: 6
281,331
2J.662
132,69
1,040.102
23*3
27,143
328,044
12,130
329.243
31,118
93 871
204,552
28,925
422.368
1.(57.332
$6,215,682 $6,414,695
Dec.
20,416
5visa
.. .
131,789
273
....
46,566
339,401
$141,697 $640,769
For the ten months of the year which have now expired, the showings
o f most of the roads included in the table below, compare favorably with
the same period last year. Taking into consideration the increased
mileage on several of the principal roads there is not a very material
variation in their traffic, either increase or decrease. W ithout any
knowledge as to the expenses, a statement of gross earnings is, at best,
only an uncertain quantity from.which to form an estimate of the net
profits ; earnings and expenses should both be given. In the remarkable
statement lately issued from the office of the Chicago and North Western
* Fourth week estimated.
+ Approximate statement—c implete figures probably much larger.
442
[December,
THE NATIONAL BANKS.
Company for the first
O ctob er], a decrease
in operating expenses
earnings of $474,924.
in tlieir expenses, the
clearly apparent.
four months o f the fiscal year from June 1 to
in gross earnings is shown o f $92,181; a saving
o f $567,100; and a consequent increase in net
If other companies can make similar reductions
necessity of a statement of operating expenses is
EARNINGS FROM JANUARY
1 TO NOVEMBER 1 .
1870.
Centnl Pacific............................................
Chicago & A lto n .................................................. .......3.990,233
ClevePd, Columbus, Cinn. & Ind’p’ s................... ....... 2,675,Mil
Illinois Central .................................................... .......7,254,’470
Kansifi P acific............................
Marie;ta & C ncin ati...........................................
Milwaukee & St. Paul ..............................
North Missouri.........................
....... 2,31 ',947
Ohio & M ss'ssippi..................................
Pac fie o f Missouri................................................. .......2,8 3,9=0
Toledo, Wabash & Western........
................. ....... 3,620,433
Union P acific..........................................
Total......., ............................
Total, excluding roaJs not repor e t last c a r.....
1869.
8,9*0.908
2,5‘ 8 599
7,3:0,709
1,150,174
5,850,751
1,5.2,4*21
9.9*9,093
2 611,366
3,491,075
Inc.
2,281,474
83,0 5
77,092
Dec.
5M39
16,704
248,904
738,50 l
158, 87
2* 9,574
125,813
....
$18,514,567
33.5S0,759 $3,933,173
$73,i34
THE NATIONAL BANES.
W o give up a large part o f our space to the elaborate quarterly
statistics of the National banks, which will be lound unusually sugges.iveThese institutions and the system under which they exist are entering
on a new phase. The recent law for adding seventy-nine millions to the
aggregate of outstanding notes have already developed an activity in the
organization of new banks, and the aggregate capital of the banks in
the whole country is in consequence increasing. The addition as yet
is not large and amounts only to three millions.
The scrupulous care
with which every application is investigated by the Comptroll-r prevents
too great rapidity in organizing new and needless banks. This severe
scrutiny we trust will not he relaxed either from political influence or
personal importunity. The rapid virulence with which the war fever is
spreading in the old world, and the financial complications which cannot
fail to assert themselves bo‘ h here and there if the Franco-Prussian
conflict should not be speedily brought to an end, add very cogent reasons
to those of a more national and local character which urge us to make
our financial machinery as perfect as possible, and to prevent by all the
means r.t command the intrusion of air1 unsound elements into the
stupendous fabric of our banking machinery.
The general prostration of business whicn has been so much complained
o f has not caused so signal a falling off as might have been expected in
the accommodation sought from the banks by the public. The loans and
discounts are reported at 712 millions against 716 millions in June and
708 millions i t the foregoing March. On the other hand the individual
1870]
THE NATIONAL BANKS.
443
deposits are reported at 501 millions against 512 millions in June and
516 millions three months previously.
The specie reserves, in conse
quence of the large exportation movement, have fallen from 37 millions
in March to $18,460,011 at present. How much o f this coin, which has
been drained off from the bank reserves, was the property of the banks
does not appear. The reports are defective in this particular, and we
would suggest to Mr. Hulburd the propriety of making, in his future
reports, a discrimination between the coin which is actually owned by
the banks and that which is merely deposited there for safekeeping by
their dealers. The Clearing House certificates are now only 19 millions,
having fallen from 21^ millions last June. The three per cent certifi
cates have, however, been increased almost half a million, and the tend
ency of these notes is to concentrate themselves more and more in the
banks o f our chief cities, where they are greatly in favor, as in case of
need Mr. Boutwell would probably be willing to stamp them for Clearing
House purposes. Probably, however, the most important change indi
cated in the tables before us is in the reserve o f legal lender notes,
which is down to $77,203,577 against 90 millions in June last and 80
millions in the previous quarter. It is easy to account for this depression
of the level of the greenback reserve, but the efficiency and strength of
the banking system will be best consulted if a constant pressure be put
upon the banks by the Bureau at Washington, keeping them continually
strong in greenbacks. W e do not know what financial troubles may arise
in either hemisphere during the next twelve months, and it is obviously
the part of prudence to be prepared for every contingency.
The permanence and success o f our banking system can only be secured
by cementing these institutions with the public confidence, and buttress
ing them with all the supports prescribed by monetary science and
endorsed by practical experience. The new currency privileges conferred
on the banks by the law of July 8, 1870, will be sure to arouse in Con
gress some opposition, and during the coming session the enemies o f the
currency system will doubtless employ themselves busily in the grateful
task of exposing the shortcomings of any defaulting institutions. The
time is past for “ nursing” any weak banks, and Mr. Comptroller H u l
burd intends we suppose to pursue a less lenient policy than was found
expedient a year or two ago. For this new severity his judicious manage
ment in the past has paved the way ; and as the banks are now for the
most part in a sound condition, it will be a comparatively easy task to
keep them so.
B y this means alone can the recent extension o f the banking system bo
carried into effect without danger. The July Currency bill will make the
aggregate of our bank note issues 379 millions of dollars. The inflation
444
MR. BOUTWELL AND TIIE PA CIFIC
RAILROADS.
\ D ccem 1
of ill3 currency which may result from these new issues will not be so
perilous as if it were made more rapidly, ai d with no calling in of the 45
millions of three per cent, certificates. Still there will needs be more or
less of expansion, and some o f the weaker banks will need careful
watching to prevent their yielding to the temptations to inflate the huge
bubble of speculation till it explodes. The office of the Comptroller o f
the Currency during ttie coming year will be no sinecure, and on the
judgment and prudence with which he exercises his functions may depend
in no small degree, not only the efficiency o f our banking system, but
the safety and smooth operation o f that complicated financial machinery
by which the vast business <f this country is carried on.
Our space forbids further strictures on the banks at present; but we may
resume the prolific subject hereafter ; meanwhile we append the compara
tive summary o f the condition o f the banks at several periods during the
current year. It is well worthy of a careful examination :
BESOUECES.
Oft. 8, 1870March 24. 1870. June 9, 1870.
Loans and discounts...... .................................... $<67.905,*84 64 $710,087,288 $712,767,458 32
overdrUt-.
....................................................
2,942,124 75
3,ICO,626 49
3,253,897
U bonds to stcn c c rculatioa.........................
33S 845,200
339,1 OB,3 0 00
3IO.S57.450 0'J
U. S. bom's to s cine deposits.........................
15,704,( 00
15 381.600 00
10,263,5* 0 00
U. S. bonds a« <1 seen on r a n d ........................
22,323,800 00
27,275,050 00
28,276,6*00
Other »-t *i k-, bonds a d ri.ort...........................
20.524,294 55
23,3t 0,631
23,014,721 25
Due from redeeming a ents ...........................
73,404,832 10
74,615,405
06,275,668 92
Dae from ot In r Naiional banks.........................
29.505,683 11
30,128.750
33,918,805 65
Dne fr m other banks & b’k’r s.........................
10,238,219 85
10,430,781
9,202.496 71
Real estite, f irmtuie, &c................................
27,470,746 97
20,330,701 24
26,593,357
Current expenses......................................... ...
0,083,189 54
6,321,955
5,871,760 02
Preiniuns........... ..............................................
2,080,882 3>
2,491,222 i l
3,070,456
Checks and other cash ite m s... ______ ___
11,173,510 22
11,3*4,979
12,473,107 67
Exchanges for l-tiring-lLuse.........................
75,317,992 22
83,926,515
79.089,088 £9
Bibs ol National bulks ...................................
14,226,817 00
10,-342,582
12,512,927 00
Bills o f State banks..................................... .
98,617 00
112,555
03,506 00
Fractional currency.............................................
2,285,499 02
9.184,714
2,078,178 07
Spec e...................................
.................
37,127, *75 16
31,099,437
18,480,011 47
Legal tender not s .............................................
80,379,978 00
90,710,751
77,203,677 00
Clearing H i use Certifies e s ..............................
19 911,000 00
21.403.00!)
13.130,000 00
-.6,339,100 00
Three Per C nt Certificates... ....... ..........
25,765,000 0.0
25,9*5,000
Total.....................................
LIABILITIES.
Cap'tal stock............... ...........
Surplus f md ..........................
Undivided profits.................. ,
National bank notes ou stand’ "
State bank notes outstanding..,
Dividends unpaid ................. .
Innivijual uep >sit4 ............... .
United tates depo-its..............
Deposits ol U.s.disb’ ng officers,
Hue to Na io at oan s................
Due I.**St tu banks and bankers
Notes and bills re-discounted.,
Bills payable....................... ..
$1,5x9,147,735 85 $ 1,565,756,c 09 $1,510,713,236 92
Oct, 8, 1870.
March 24, 187*>. Ju e 9, 1870.
$427 504,247 00 $427,' 35,701 $430,31.9 301 06
94.001,438 9 )
90.229 954 59
9,6*9,834
88,608,618 95
43,!C9,4?0 62
42,861,712
291,798,640 01
. 29’,509,150 00
291,183,614
2,279.469 00
2,350.126
2,183, *48 00
2,462,591 30
1 483,416 15
1,516,815
501,407,580 91
. 516,058,085 26
512,135,010
6,424,421 25
Id,677,813
6,807,973 40
4,5:0,142 68
4,7 8,225 93
2,592 967
100,348,292 49
, 109,667,715 95
115,456,491
29 693.910 85
29,707,575 21
33,012,162
8,843,577 60
2,402,647 49
2,741,843
4,592,609 77
2,813,357 40
2,392,756
$1,529,147,135 85. $1,565,756,909 $1,510,113,230 92
Total
MB BOUTWELL AND TIIE PACIFIC RAILROADS.
W e lately called attention to the conlrovetsy which Mr. Boutwell has
begun with the Pacific railroad companies, relative to the payment o f the
interest on the six per e nt currency bonds issued by the Government to
1870]
MR. BOUTWELL AND THE PA CIFIC RAILROADS.
445
aid in the construction o f those railroads.
These bonds are known as
currency sixes. They amount to $64,618,832, and being the only 30-year
Government bonds in the market they are in great favor, and command a
high premium.
The controversy does not affect the character of the
bonds, which is undoubted, nor the obligation of the Treasury to pav
the semi-annual interest to the holders of the bonds. The point raised
by Mr. Boutwell concerns simply the refunding of the interest bv the
respective companies. Mr. Boutwell sets forth his side of the case as fol
low s: There was, he says, an understanding when these bonds were
issued that as fast as the Government disbursed any interest the com
panies should immediately refund the amount without delay. This has
not been done, and the account he presents is as follows:
Union Pacific..........................................
Do Centr'd Branch................................
Central Patiflc........................................
Western Pac lie......................................
Kansas Pacifi i........................................
Sioux City and Pacific...........................
Total.................................................
Interest
IntercFt
Interest
p a d by
repaid by now due to
Principal. United st tea. Con.pani.-s. G. v’ nment.
$27,280,613
$3,713,371
$1,430,111
$2,888,241
1,6 0,0011
301,SOS
7.401
204,406
25,8 1.(00
3,261,767
241,C33
3,020,129
1,97(1.000
181,107
82 1
122,016
6,3 3,000
1,212,913
721,823
488,169
1,628,320
194,207
396
193,811
$64,618,832
$S,815,346
$2,412,6c3
$6,402,632
From this statement Mr. Boutwell claims that the six corporations
above mentioned are under an obligation to pay immediately into the
National Treasury six millions and a half, and lie some time ago
addressed to them a communication setting forth his views.
To this
claim the companies responded, by calling the Secretary’s attention to
the law of July 1, 1862, as amended July 2, 1864. Under this statute
the bonds were issued, and by its provisions the companies claim that
they are freed from the obligation o f immediate payment. Here for
the present the matter rests. The companies, we believe, have not refused
to pay the claim put forth by the Treasury.
They Lave simply called
the attention of the Secretary to the law, and left the matter for the
present in his hands. W hile the case is under the consideration of the
law officers of the Government its probable issue is anxiously discussed
in W all street where the securities of the Pacific railroads are O
"rowin'*
O
in popularity, and it is evident that the market price and the investmentvalue of some of these securities will he very much affected if there is a
fair prospect that the claim will be sustained for the payment of three
millions a year to the Treasury more than had been calculated upon. To
give the materials for an unbiased and independent opinion in the ease,
we copy the two sections o f the law of 1862 which refers to the subject
and we enclose in brackets such amendments as were made to the statute
by the act o f 1864. The following are the sections referred to :
S ec . 5. And be it further enacted, That for the purposes herein mentioned
the Secretary of the Tieasury, shall upon the certificate in writing of said commis
sioners ot the completion and equipment o f forty [twenty*] consecutive miles of said
446
MR. BOUTWELL AND THE TA C IFIC RAILROADS.
[ D ecem b er,
ftailioid an 1 Telegraph, i ’ accordance with the provisions o f this act, issue to said
Company bonds o f the United States o f one tho isaad dollars each, payable in
thirty year,) after date, bearing six per centum per annum interest, (said interest
nayable semi-rnnual y.) which interest may be pail in United States treasury
notes or any other money or currency which the United States have or shall declare
lawful money and a legal tender, to the amount of sixteen of said bonds per mile tor
such section of forty [twenty*] in desand to secure the repayment to the United States,
ns h.reinaiter provioed, of the amount of said b nds so i-sned and delivered to said
Company, together with a!l interest thereon which shall have been paid by the
United States, the issue of said bonds and deliv ry to the Company shall ipso facto
constitute a firet [secon i] mortgage on the whole line of the Railroad an I Tel gr.ipb,
together with the rolling stock, fixtures, and property of every kind and defcriptr n,
and in consideration of which said bonds may be issued; and on the refusal nr failure
of the said Company to redeem said bonds, cr any part r f them, when required
6o to do by the Secretary of the Treasury, in accordance with the provisi ns of this
act, the s iid road, with all the rights, function-', immunities, and appurtenances
thereunto belonging, and also all lands granted to the said Company by the United
States, which, at the time o f sai l default, shall rrirnin in the ownership of the said
Company, may br taken possession of by the Secretary of the Treasury, for the
use and benefit of the United States : Provided, this section tball not apply to that
part of ar y road now constructed.
S ec . 6. And be it farther enacted, That the grants aforesaid are made upon con
dition that said comprny shall pay sa il bonds at maturity, and shall keep said
railroad and telegiaph line in repair and use, and shall at all times transmit des
patches over said telegraph line, and transport mails, troops, and munitions c f war,
supplies, and public stores upon said railroad for the Government, whenever required
to do so by any department thereof, and that the Government sha 1 at ail times
have the preference in the use of the same fur all the purposes aforesaid, (at fair
and reasonable rates of comp nsation, not to exceed the amounts paid ty private
parties for the same kind of service ;) an I all [one-half o f the*] compensation for
services rendered fer the Government shall be applied to the payment of said
bonds and interest until the whole amount is fully paid. Said Company may also
pay the United States, wholly or in part, in the same or other bonds, treasury notes,
or other evidences of debt against the United States, to be allowed at par ; and after
6aid road is completed, until said bonds and inte est are paid,at least five per centum
of the net earnings c f said road shall be annually applied to the payment thereof.
It is foreign to our present purpose to prejudge the case while it is
under the consideration of the proper authorities at Washington. And
yet we think there is much force in the argument o f the Companies in
regard to one or two o f the points involved. In the first place, they
claim that there was no “ understanding” or secret deputation connected
with the issue of the bonds; that the law from which we have quoted
contains the terms, and the only terms of the contract; that the faith
and credit of the Government are pledged to this contract, and in reliance
upon its privileges many millior s of dollars have been subscribed by
private persons and capitalists to build the roads in question. Now, in
contracts it is a fundamental principle of inteipretation that the promiser
is bound in the sense in which he knew the promisee understood him.
Applying this principle to the interpretation o f the grant, they take the
plain meaning o f it to be substantially as follows: That the principal
o f the bonds shall, at maturity, be paid by the Company io cash, but
* As amended 2d o f July, 1864.
1670]
NATIONAL BANK RETURNS.
447
that the interest shall not be refunded by them to the Government in
cash. The only payments they are required to make on account of
interest on these bonds are such as are specified by the sixth section, and
consist, first, in transporting the mails and in rendering other services at
the order o( the Government, and, secondly, in a cash payment of “ at
least five per cent o f the net earnings of the road.” I f the terms o f this
contract seem unfavorable to the Government the Companies claim that
the money for construction could not, on easier terms, have been obtained,
and that without such concessions as are now complained of the road
would still have been to build.
They add, moreover, that the
Government saves every year in direct transportation for Indian expedi
tions for interest and the transportation o f mails, a much larger sum than
is advanced by the Treasury on the Currency bonds. In confirmation
of these statements as to the impossibility of constructing the road
without the privileges now called in question, they appeal to the discus
sions in Congress where it was over and over again demonstrated, that
the necessity for the road and the benefits promised by it were such, that
if the bonds were a free gift to the railroad instead o f a loan to be repaid
in thirty years, still the nation would be amply repaid by the development
of its industrial resources, and by the creation of a grand highway to bind
the Pacific States to those of the Atlantic in a permanent bond o f indivis
ible national unity. It is also remembered that the enterprise o f building
the transcontinental highway was so unpopular among capitalists, that
notwithstanding all the privileges offered, very little work was done, and
very little capital could be raised till the year 1865, when some energetic
men took hold of the scheme and made it a rapid success by the force of
their indomitable will and resistless enterprise. To all these arguments,
however, in favor of the privileges claimed by the Companies there is one
response. If the law by a clear enactment expressly exempts these cor
porations from liability to refund to the Treasurythe interest on the cur
rency bonds as fast as the said interest is paid out, then and then only
will the exemption be conceded. Mr. Boutwell will withdraw his opposi
tion, and the controversy will be closed.
NATIONAL BANK RETURNS.
W e are indebted to the Comptroller of the Currency for the following
statements o f reserves, with reports o f the National Banks of each State
and redemption city at the close o f business on Saturday, the 8th day of
October, 1870. The returns o f the cities are not included in the States
of which they are a part. The previous returns will be found in Tub
M a g a z in e for August, page 1 0 8 .
448
Table o f the state o f the lawful money reserve o f the National Banks o f the United Slates, as shown by the reports o f their
condition at the close o f business on the 8 th day o f October, 1870.
60
67
88
28
43
1
3
Reserve
held.
$2,642,286
1,508,686
1,743.839
11,398,751
3,789,960
6,670,875
14,934,632
5,550,116
8,970,234
619,625
1,205,148
982,811
718,('74
514,643
293 575
963,081
103,135
470,816
39,632
618,491
1,105,067
5,496,574
3,834,062
2,832,495
1,307,685
908,104
1,887,949
1,112,360
695,331
147,025
61>*,703
P I ,415
847,815
40,807
36,797
36,771
Fer cent
of reserve
to
liabilities.
20.7-10
22.1-10
19.7-10
i.0.8-10
19 9-10
22 1-10
20 3-10
22.4-10
21.1-10
*3.
27.3-10
15.5-10
17.4-10
22 8 10
21.1-10
29.6-10
17.9-10
39.9-10
10.5-10
20 9-10
22.3-10
19.9-10
19.7-10
20.8-10
19.6:10
21.8-10
21.5-10
23 4-10
21 9-10
20.6-10
28.
24.1-10
44.1-10
18.6-10
13.5-10
27.9-10
$404,337,512
i 60.-‘ 50,626
$S4,777,956
SO.9-10
Specie
i 32.234
26,812
39,793
207.167
37,807
116,045
419,742
138,939
98,320
5,422
32,649
87,927
20,155
22,753
17,107
86,996
1>,723
277,384
1,670
10,126
35,025
51,705
131,806
110,405
21,787
23.787
62,810
46,64 4
15,614
1,328
9,845
13,309
84,848
7,450
811
18,716
$2,S57,s:e
— Funds available for reserve—
Three per
Legal
cent
Tenders.
ceriificates.
$1,077,246
$5,000
$1,527, 06
471,408
20,(00
990/06
85,000
712,468
906,578
4,263,150
19 ,000
6,733,434
1,348,229
75,000
2,328,924
2,383,721
17 -.000
4,001,109
5,430.709
750.000
S,304,231
1,862,041
225,000
3,354,186
4,057,627
695,000
4,119,587
80,000
204,935
329*268
518,593
30.000
624,904
495,160
349,224
409,564
25,C00
263,355
242,084
249/06
231,500
46.963
542,218
75/00
258.670
39.849
50.558
159, &51
34,111
26,523
11*439
3 -7,417
269.913
568,597
501.445
2,993,940
250,000
2,200,929
2 106,190
£5,000
1,561,066
1,347,912
65,000
1,309^178
753,901
40,000
491,997
422.364
35,000
456,953
1,020.681
25,009
779 458
483.113
582,603
382,4,0
10,000
287,217
89.722
55,975
140.594
463,269
120,201
47 905
162,401
600/66
29,300
4 057
5.456
£0.' 00
12,230
6,775
.........
$35,465,915
$2,890,000
$41,064,185
RETURNS
4
2
13
13
Reserve reqnired 15 per
cent of
liabi) ties
$1,917,213
1,021,932
1,325 035
8,211,058
2,859,453
4,523,670
11,011,462
3,718,836
6,703,376
403,229
661,989
904.340
617,882
338,319
212,036
487,307
86,522
177,162
56,419
443,355
741,675
4,151,114
2,924 111
2,093,212
1,001,081
623,636
1,315.532
714 006
476,330
106,814
328,424
112,548
283,173
32,?-38
40,796
19,750
BANK
Total................................
IS
17
14
6
3
8
Liabilities
to be prott cteu by
reserve.
112,781.420
6,812 s77
8,833,576
54.740, 85
19,063,019
30,151.802
73,409,745
24,792,243
44,089,173
2,6S8,195
4,412,927
6,028,932
4,119,(181
2,2:5,661
1,413,576
3.248,117
576,812
1,181,073
376 129
2,955,703
4,944,497
27,674,292
19,494,076
13,954,746
6,673,875
4,157,572
8,770,217
4,760,039
3,175,535
712,090
2,189,494
750.319
1,921,’ 51
218.921
271.972
13 i,665
N A T IO N A L
States and Territories.
Maine ................. .............. .
New Hampshire.......... .. ... .
Vermi nt ............ ............ .
Massachusetts........................ .
Rhode Inland................. ........
Connecticut.............................
New Y o ik ............. .....
.
New Jersey.............................
Pennsylvania........................ ,.
Delaware.................................
Marvland........... ....................
Virginia..................................
West Virginia.........................
North Carolina....................
South Carolina ......................
Georgia....................................
Alabama..................................
Texas.......................................
Arkansas ................................
Kentucky.................................
Tennessee................................
<>hio........................................
Indiana .. .............. ................
Illinois.....................................
Michigan.................................
W isconsin..............................
I o w a ......................................
Minnesota......................... ,
Missouri..................................
Kansas.................. ................
Nebraska...........................
Oregon........................ . ..
Colorado................................
Montana................................
Utah.......... ..........................
Idaho.......... .........................
Number
of
Banks.
61
41
42
160
62
81
231
54
151
1870]
Table o f the slate o f the lawful money reserve, of the National Banks o f the United Stales, as shown by the reports o f their
condition at the close o f business on the 8th day o f October, 1870.
New Orleans......................
L o u iv i.le ..........................
Cincinnati...........................
Cleveland ..........................
( h’ ca o ...............................
Detro l ................................
Mi wankee..........................
St. Louis............................
Leavenwt rih......................
Total.............................
New Y ork...........................
$54,090,981
48,174,2.23
$63,6'8,075
64,045,220
Per c°nt
-------- Funds avanable for reserve.-------- ----- ---------- ,
Clearing
Due from
o f reserve
Three per
to
cent
rede* nr g
Legal
House
liab iit es.
Tenners. Cer,ideates. certificates.
agems.
Specie.
$9,5«l, 139
29.6 10 $1,872,792
$6,151,310
$4,0.J).uUD
2,190,09)
39.
1 155,0 4
345,090
19,358
28.9 10
4,247,281
1,285,674
290.960
1,620,000
5,52‘.\i03
29 2-10
2.242, 01
375,0;H)
1,70 ,915
162,5' 6
26.1-10
1,94 '.341
1,619,486
108.875
5ji,000
690,000
155.779
27.3 10
43,509
23 ',481
225,OtO
20 >,506
22.9-10
132,811
260,7 0
32.
198,622
2o6.-9S
5/00
3,128
27.9-10
1,2 1.710
7i»,000
848,040
95,747
26.3-10
709 500
f 31,932
1,795
1P0 000
.. . . .
30.7 10
2,2 4,2 5
3,722, *56
395,0U0
117,856
689,1-9
32.2-10
6 558
52*,549
60,"u0
32 9-10
491 685
313.593
15,00 >
80 5
27 1-10
1,089 094
455,000
332,125
110,315
99,822
19,000
23.8-10
1,231
114,842
29 7-10
S3.6 10
$,2,966 506
9,141,643
$24,0^9,085
17,648,577
$t,12l,‘ 00
17,015,000
$12,300,000
11,140,000
$22,211,434
449
$216,363,924
192,606,891
Feserve
held
$21,6 21',271
3,70',408
12,96:3,-20
4,487,721
4,774,702
656,769
594,097
443,148
2,225,497
1,4*3.227
6,469,387
1,278,216
828,343
1,985,534
2'5,V75
NATIONAL BANK RETURNS.
Redemption Cities.
Poston.................................
Alb-ioy.................................
Philaielphia............... .......
Pittsburg.............................
) an more.................. .........
Liabilities
Feserve reNumber to be pro qnireH, 25 per
of
tecteo by
cent of
Banks, reserve
liabilities.
$72,900 450
$18,225,113
9,481,877
2,370,169
44,744,979
11,186, *45
16
15,346 989
3 836,747
4,569,614
18, 78,456
600,842
2.403,307
2,597,649
649,412
4
1.884,383
341,096
l,9>8,-94
7,953,177
5,441 613
1,360,493
21,074,656
5,268,664
3
3,963,333
990 833
4
630,008
2,5 0,010
1,831 255
7,335 021
236,986
947,944
450
NATIONAL BANKS OF EACH STATE— TH EIR CONDITION OCTOBER S, 1870.
RESOURCES.
5,00) 00
20.000 00
85,000 00
195,000 00
4,035,000 00
75,0? 0 00
170/00 00
LIABILITIES.
............ $24,619,319 14 $12,S44,1L8 fc3 $18,031,468 40 107,548,494 36 $142,533,403 11 $33,595,67S 55 $64,673,830 49 $125,707,301 31
t Exclusive of N ew Y ork City and Albany.
[ December,
Total__
♦ Exclusive of Boston.
$9,
$9,125,000 00 $4,835,000 00 S7,4ti0.<il* 50 $3'>,272,(!0'1 00 $47,8''0,009 00 $20,3 *4.809 00 $25,056,^0 0^ $36,362,741 O’
1,997,671 19 5,060.016 99
1,531,030 49
727,676 66 1,030,522 65 9,632.8 7 *29 10,271,813 19
6.613. 59 :-0
401.*204 89 2,72\936 04
1,631,625 33 1 237.351 26 1 575,6?1 65
929.484 17
438.688 96
4.677 943 06
25,362,471
00
12.377.907
00 17,279,614 ■0
7,
X-mS&j 00 4,266,520 00 5,994,485 00 30, *69,938 U5
28.7'7.056 00
101 409 00
161.6'*4 09
26.286 00
201,207 CO
237,701 00
48.124 00
23.051 00
421. !«7 0 i
492,759 *6
76,729 25
158,8*20 37
79,7*28 59
9,983 26
518,220 50
135,001 04
34.670 96
4,855.040 61 2,317,621 39 2,663.' 85 97 22,230,713 63 41,902 *2» 4 57 5 940,525 38 11,981,662 52
4’ ,37‘- 973 84
12*2,701
29
17,410
15
97,102 35
519 583 67
20 '.952 17
133.593 79
693 592 24
143 005 70
275,889 47
17,962 09
107,819 46
33.01■ 73
206.OI9 75
51,059 25
16 .290 92
968.33 6 1 12.9S7.1M 06
892,673 00 2,509.778 28
1,589 OS
45,12 4 36
208.965 58
3.6 5.3? 9 <3
15,57i <8
174 401 66
1,969,4 15 35
32 5.659 97
77.48! 04
392,650 14
1,57 .770 25
915 63
9 767 88
136,( 40 75
28,083 06
968,5*0 20
53,294 67
191,000 01
19S 49
4.300 00
170,•00 0 1
395 109 89
state.
Capital stock ................ ......................
Surnln® fund........................................
Undivided profits................................
Nationa' bank notes^ntstanding.............
State bank notes oi-Aranding ..
Divid nd* nnpai ................................
Individual deposits.............................
U. S. D e p o rts.. . . ...........................
Deposit* o f U. S. disbursing officers.
Due to i at oral ba;.ks.......................
Due to State bmks and bankers........
Notes and bills rediscounted.............
Bil s payabl j..................................... ..
each
75 \rf0 00
$24,019,319 14 $12,844,158 63 $18,031,463 40 107,548,494 36 $142,536,403 11 $43,595,678 55 $64 673,S90 49 $123,707,301 31
of
..............
banks
Total..............................
n a t io n a l
Loans and discounts..................................
Ov. rdraf'ts...................................................
U.
bonds to st cure circulation............
U. S. bon^s to secure deposits.................
U. S. bonds and securities on h a n d .......
Other stocks, bonds ana morrgages.......
Due from redeeming and reserve agents.
Due from other national banks
....
Due irom state banks and ' ankers........
R< al es’ ate, furniture and fixtures..........
Current expenses.......................................
Premiums. .. ..........................................
Checks ai d other cash items....................
Exchan es for Clearing H ouse...............
n ils o f "ther national banks....................
Bills o f State banks...................................
Fractional cuirency...................................
Specie. ....................................................
Legal tender notes.
.............................
CJearin- House certificates.......... .......
Three per cent certificates........................
MappaISe «
Ne.r
City
Rhode
New
Hamnshire.
chnsefs.*
Maine.
Hampshire.
Vermont.
of Boston
Island.
Connecticut.
York 8tale t
11,359,185 01 $4,975,021 69 $7,674,296 39 $52,12?,2 8 5 $74,867,539 10 $22,821,935 04 $31412 416 18 $62.53! 114 55
!-2,t 5 < 00
69,083 95
38,303 33
17,*07 50
43 495 5 J
24.222 36
117,644 74
50V 51 77
8,379.75>i 00 4,877,(00 00 6,877 ()■0 00 35,- 32,350 00 29,980,650 ( 0 14.199,60 (0 19,759.100 00 33,200,250 00
470.' 00 00
1 250,00'> 00
850.000 ()i
26 ,(» 0 00
3i10,000 00
525, 00 ( 0
542,000 00
1.595,5(0 00
416,? 50 00
440,550 00 2,71 V250 00
1.763.550 00
1( 0.350 09
208,SO) 00
962.200 00
1 434.5' 0 ( 0
169,900 00 1,006.3(5 90
423,08' 10
2'8,324 03
356,774 33
2St,443 63
872,049 93
3,096.360 67
9,561.13S 63 2,32 ,924 43 4'01,108 62
906.578 35 6,733,431 49
990,405 70
1,52V06 01
8,3 1 2 ' 21
575,822 66
192,874 10
3,714,911 53
91,863 t!6
400,195 55
124.401 17
1,935 442 i O
1,911,301 93
21,973 66
181,168 17
140,23*5 GO
4.871 96
1 0,o«3 86
45.591 S2
2-8.249 48
632,838 69
199.' 60 24 1,138 709 82
1,G47,369 04
226,269 32
f 57.505 12
112, 82 57
78‘>.5V8 2
1,925.241 64
64,378 08
23,278 80
112,990 84
61,315 68
115.792 42
43,132 49
234,953 39
528,' 80 22
35,3S9 28
18,983 45
3,920 69
18,869 72
20,690 75
31,596 ;5
233.(63 58
29 '.4130 61
684,648 17
128,480 36
575,034 44
287,240 17
76.2S0 29
666,667 38
2,205,957 24
5,' 75,894 93
140,466 00
857,368 00
1,041,214 00
252,062 !0
114,931 00
172,756 00
273,?53 00
738,400 00
65 0)
4,49 • 00
43 00
153 00
192 00
216 00
364 00
1,981 00
173,738 81
17.794 69
97,727 45
61 19! ( 6
33,184 75
9,962 33
43,803 04
SM.HSn on
207.166 75
1,972,792 22
39.792 50
37 807 40
32,334 43
26 871 58
11*',044 78
449.741 81
6,151,340 00 1,348,2*9 0)
1,077,246 00
712,468 00 4,263,150 (.0
2,383,121 00
471,40S 00
5,430,7( 9 A0
Delaware.
Maryland +
$ 2 ,222 ,3 .7 28
1.862 15
1,348 200 00
60,' t 0 1 0
8.700 00
80 , 116 43
3 :9 .2 6 m 45
K 2 / 9 2 31
43.382 31
123,285 60
20 706 11
3 409 25
53,875 53
$3,06 ,9 i6 86
2 9 / 9 94
2,008. v5 '1 00
" 2 7 /7 5
2,135
9,471
5,421
204,935
81,415
94'
17, 43
32,6 9
518,593
8o,66o‘ io
2,650,000 00 11,801.2-0 00 2 4 /05,240 01 $16,255,150 00 $9,000,000 00 $1 428.1S5 00
Capital stock............................................... 73,435,000 00
990 000 00
2,618,829 47
5,4'16,990 61
6,507,179 90
2 /0 5 ,1 8 0 49
3 l \8l6 08
Surplus fund........................... .................... 13,835,009 19
10 039, tbt 42
42 ',9.52 31
1,35',187 0 7
1 /8 1 ,3 1 5 51
1 8 4 2 /9 3 51
764,168 8 7
77,(M8 21
Undivided or fits.......... ........................
32,945,080 06
1 /8 1 ,9 9 1 0 0
9 /3 7 ,1 7 6 00 20,511.414 00 i0,9S4 561 00
6,65 V 55 10
1,186.0fl 00
National bank no es outstanding.......
235,959 00
21,822 00
112,0>5 00
158 8 79 0 )
89,041 u0
59.451 00
14.8 6 0
St 1 e bank notes outstanding ., ............
236,860 65
14,531 61
113,318 00
94 312 65
66,7 3 37
30,8S5 79
",666 16
Dividend- uepaid.. . . ................................
6,327.585 51 14,7'6,647 t)9 23,634,140 45 3 6 /6 5 348 62
8,553,451 43
1,325,555 57
Individual d p o -its................................... 167,0 0,366 55
241,961 99
78,646 15
160,425 53
3 ) 5 /3 8 83
76,922 62
.................
56,309 01
United States deposits ...........................
............................................ 205,868 49 42,021 19
21,069 51
......................
'1 1 ,- /2 31
Deposits o f U. S disbursing officers . . . .
1.932,037 77
2,0)8,26 ' 01
1.9 4,683 00
4,719,490 87
8 0 ,9 8 2 57
253,50115
Due to na’ io al banks........ . ................. 55,947,455 65
489,398 25
3<2 10 71
379.323 78
l,1 4 f,7 l0 68
494,257 6 1
33, >00 5»
Due to State bank-* and bankers............ 16,2-'5,168 7J
..............
...............
58,715 92
309,7-5 70
....
7 9 /6 9 75
15,00u 00
Notes and bills rediscountei....... ............
..............
............
13,615 00
85 005 92
8,500 00
..............
...............
Bills payable................................................
Total
.$375,152,133 15 $15,012,746 10 $42,557,111 99 $79,220,341 96 $73,113,891 66 $23,610,312 55 $1,726,673 90
t E x cu s iv e o f the City o f Baltimore.
0 00
54
88
11
72
17
3t,73l 93
18,-42 06
104,118 06
00
00
70
85
00
. . . . $375,152,131,15 $15,012,746 10 $42,557,111 99 $?f/20,341 96 $78,113,891 66 $2S,610,3;2 55 $4,726,673 99
* E xclusive o f Philadelphia and Pittsburg.
ItO.OOO •0
221.1
270,319
624,903
148 928
49,215
125.132
,
(0
00
3!
16
t0
30*000 ‘66
$ 7 ,5 2 8 ,0 3 1 ,7 5
$2,348 217
462,38:
212,925
1,748,103
12.0:9
32,283
2 ,5 3 M 2 )
48,670
53,749
97,521
3 * /8 5
5,00)
35
50
97
80
00
00
97
27
09
15
29
71
00
00
NATIONAL BANKS OP EACH STATE.
T o ta l. ..
Albnny.
New Jerfey. Pennsylvania.* Philadelphia. Pittsburg.
5,910.8 5 It 21.16,1,328 4 36,537,036 73 $36,947,916 8> $13,78^,626 23
5b. ()'.*,-• 9b
10,363 77
49, 52 30
6, 0 s 23
256,241 41
2,184 Ot 0 00 10,685,450 00 23,517.00) 01 13.229,700 <0 7,704,590 00
200,000 00 3 5,000 00
285,o
0 (0
."91,(0) 00
1' 9,700 00
307 450 00
970.05U (.0
2,037.60) 00
260,906 00
6o9,5 8 65
1,I60,9M 98
736.338 81
85,864 91
1,442.377 02
3,8bo,679 03 1,707,915 45
2,190,005 56 3,32 U t6 02
4,119,28 i 59
1, 01,9 4 19 1,163,351 89
1,8 6,347 52
2 44'.,7:3 65
3 9,78. 88
2.3,025 98
554,794 53
i 1.312 11
808,867 64
188,622 73
991,426 45
185,69b 12
1,786,824 58
742,333 33
1,465, 97 08
3,2-1 63
£38 599 84
166.153 80
131,907 55
4 9 1 ,-!7 22
1,166 07
91,01. 24
21,3 7 78
33,882 63
114,719 43
430,631 56
1 1 8 /2 5 93
485/52 28
806,239 34
504,-62 56
5.666,859 86
596,2 9 97
151,10' 42
331,244 f©
639,167 00
103,775 00
200,724 00
503 913 00
8,359 00
5,253 00
1,835 00
1,098 00
148,9
4
54
*31,84S 86
70,944 39
44,513 00
146,115 93
29 ',96 l 20
162.506 24
10,357 68
138,9 8 57
98,319 87
4,247,2Sl (0
1,155,014 00 1,S62,041 00 4,057,627 00
2,242,300 00
1,6.0 Oi'O 10
375,000 00
315,000*00
6 9 5 / 0*00
225 000 00
5, 20,000 00
1870]
RESOURCES*
New York City.
Loan® and discounts................................ 167,969,157 54
Overdrafts..................................................
112,028 40
United States bonds to secure c rcnlation 140,8:6 550 00
United tates bo ds to secure di pos ts ..
700.000 00
United States bonds &sefuiiiies on hand
6,569,75') >*0
Other stocks, bonds a> d m- r ^aires........
6/9U/61 89
Due from r deeming ano ivs« rv agei. s..
Due from other •ational b n ks............. 12,617,724 05
Due from Slate banks and bunkers
..
2 -72,529 c6
Real ectaie, furniture ana fixtures..........
7,888,189 04
Current expenses.......................................
1,282,‘ 25 00
Premiums...................................................
921,615 25
Checks and other cash items. . . . .
...
2,822,C-3 92
Exchanges for clearing house.................. 62/83,329 11
Dills of other national banks...... ..........
2,691,519 CO
Bills ot State banks..........................8,6 b CO
Fiactional currency...................................
331.076 76
Specie
................................................. 13,135,649 33
Legal tender notes................................... 17 648 f 77 00
d ealin g house certificates......................
17,015,000 00
Three percent Certificates...................... 11 140,*H0 00
$7,523,031 75 -
Or
452
KXSOUROE&J
46,663 67
82,102 45
26 .779 97
36,360 3b
29,292 76
187.121 47
36,893 11
6(1.000 0)
189,581 39
8,432 00
1*4,022 00
' 722 53
12,7 7 70
80,819 00
3,797 44
132.810 ?0
• 200.516 00
$2,866,239 93 $5,776,926 20 $1,0!4. .16 43 $4,256,919 00
of e a c h
200 00
19,093 22
50,558 47
2,354 27
8,743 41
3",00(> 00
18,324 64
LIABILITIES
1,014*20
1,56 ,365 41
147, '7 * 23
15,747 ( 3
5^,01 * 46
8,500 3 1
157,875 00
$1,081,100 00 $1,815 000 00
121.0 6 83
238.600 0 *
79,102 ’ 5
2 *4,8*7 97
333 000 00 1,117,671 00
480 00
981,117 08
77.9 ?4 60
71,243 69
1*5,60) 00
36,250 00
1,088 00
1,681.59 30
48.6*5 69
46 417 96
3)6 705 71
16 ,3 j4 57
$400/00 00 $1,300 0^0
24,569 69
107,100
7',313 35
’ 01.6'7
265,018 00 1,013,331
311*793*56
2,895 co
1,415, 59 02
1 071 98
7,417 85
P6,7?4 99
199,411 52
3
.54 $ 1,518,550 33 $2,861,230 93 $5,716,920 20
00
00
47
CO
$1,256,969 U
[December,
100,00 ) 00
$4,244,036 32 $0,522,464 06 $6,995,
69,759 8 )
119.734 82
528,655 00
IS
302,461 75
1)3.635 88
1,8S7,952 00
575 00
6.603 50
2,069,135 93
P1.8S7 61
66,5)2 49
121/87 93
71/13 23
54.601 14
!
Is
Total .............................. $33,945,338 17
$2,lt«,100 00
state.
Capita1 stock..........................$10,891/85 00 $1,050,000 00 $2,375/00 00
Surplus fund........................... 1/7S.219 79
*51,00* 00
22^,541 «8
Undiv del profits............. •...
801,663 78
56.970 79
180.285 70
,4at ona' bank notes ontstd g. 7,0St.920 00
809,818 01) 2,128,328 00
•'tate bank notes outstanding.
129,947 CO
. ...
D’vidends nnpa d ..................
43,3 >9 57
5*/45 00
9,020 09
Individual deposits ............... 10,346,02182 1,362,489 18 3,593,423 31
U. S. deposits..........................
186,392 12
184,082 14
214,427 99
97. *9' 00
Dep’ sot U.S. disburs’gofflc’s.
............
—
Due to National b inks_____ 2,117,840 73
459,749 23
213,413 74
Du *to S ate banks & hank’ s.
366.018 34
11,081 93
89,917 f.8
> ote8 and bills rediscounttd..
100,000 00
............
364.3*1 56
Bi.ls payable...........................
......
..........
32,003 00
n a t io n a l
Total.................................$33,945,328 17 $4,244,086 32
Alabama.
N. Orleans.
$525,777 12 $1,783,928 95
270 40
31,775 57
310,500 00 1,2 8,(JCU 00
banks
Virginia.
Baltimore.
WaPhinelon.
W . Virginia. N. Carolina.
S. Carolina.
Georgia.
Loans and discounts....$17,069,1*992 $1,401/38
70 $4,685,180 43 $2,85s,7i 7 96 $l,49o,99l 28 $1,S16 417 03 $2.478,4J3 82
Overdrafts....................
10.461
47
17,869 07
76.335 85
16,109 95
30,200 36
12,954 49
25 893 15
U .S.b oldster securecircnl’n. 8,007,5 0 00
970,000 00
2,1*3 (TO 00 2,145,4*0 00
665,10» 00
374,000 00 1,548,000 00
U.S. bonds to secure deposits.
400,000 00
200,000 00
25.’,COO 00
200,i 00 00
1'0,000 ( 0
180,100 00
U. S. bds vnecurities on hand
650 00
267,600 00
153,850 09
1.000 00
1,000 00
108,0 0 00
Other stocks, bonds* mort’s.
807,780 98
21,088 60
78.336 6*
185,419 84
It 6,525 93
54,685 33
25.0'0 no
Due from redeeming agents. 1,619,486 18
155,779 38
349,224 10
263,354 57
46.967 62
249.806 38
258 S70 05
86,602 85
201,702 14
238,825 42
Due from other nat. banks ..
325,749 06
73,451 01
18,042 97
44,41 8 66
85,50 i 50
68,756 12
Due from State bks & b’ kers.
100,633 92
28.745 94
12,152 06
61.356 47
56 412 83
59.061 61
195,728 72
R^al estate, furniture & fix’ s.
504,689 88
291,804 19
347,646 27
110,765 19
99,094 57
34,402 97
Current expenses.......
143,166
99
32,688 14
65,158 09
S0,034 04
48, 64 16
15,098 66
13,826 25
8f‘,000 42
Premiums ... ........................
26.518 75
6 22405
32/86 42
5,527 29
37,0 58 69
87,395 67
Checks and other cash items.
78,801 80
51,740 46
196.356 89
90,010 00
20,086 52
79,760 58
JSxc’a ges for Clearing House 1,438,683 56
............
Bills of national banks..........
248,310 00
218,593 00
44,678 00
66,575*00
102,202 00
92,710 CO
218,172 00
2.714 00
Bills o f State banks...............
473 00
............
844 00
Fr ctional currency...............
8,056 49
5 90900
2,7 :?1 33
19,247 06
18,874'70
10,962 53
?5J79 37
Specie.....................................
108,875 22
43,508 93
20,155 34
22,7* 2 64
S7,927 07
17.107 15
80,096 10
409,564 00
Legal tender notes................. 3,945,3U 00
212, Si 00
242,084 00
495,160 CO
234,500 00
542,218 00
Clearing House cerlifica*cs..
50',( O') 00
Three per cent certificates...
600,010 00
225 00000
25,000 00
75,000 00
250,000 CO
5; 01 00
70,0‘0 f0
190,003 do
35,000 0J
Total...............................
$1,891,385 45
250 00
(16,681 64
86.260 83
91,5v4 35
43,909 90
32,*38 97
103,396 SS
08,437 59
25,054 92
1,963 05
50
2,75-1 0>
11,902 nc
1,36'.203 73
27, 60 96
4,*04 54
70 674 59
98 t'30 87
$95 ’,0"0
113,335
81,804
790,787
00
84
90
10
1, *95 00
498,175 SI
141.495 74
44>67 28
1.970.360 00 15,304,700 00
221 505 44 3,-03,719 00
195,108 94 1,285.259 1
1 393,571 00 12,'00,330 09
52.003 (10
19,0(i0 01
5,323 50
2,830,609 72 14,383.129 42
330,610 51
15 <,790 61
124,2 5 93
202,577 50
551,41.8 89
327,358 41
250,i‘77 75
82,134 47
174, 58 91
333,56s 98
12 400 0)
'3,500,000 00
560.778 50
2- 5,618 85
2,904,S;0 00
5,2 6 00
3,159,518 01
117 117 7t
1,957,441 14
277,220 9?
673, OuO 01
$3,300,003 fO $13,277,000 0
.<50.485 22 3,2o6,£98 77
7 2,009 17
3 6,238 <9
1,829,725 00 10,922,62 * 00
10,1- 0 90
3,689 00
550 09
15 3i7 13
3,503,191 28 7,905, * 0 70
89.571 85
3- 0,333 48
73,6.41 48
214,494 38
192,11 s 88
214,47! 86
191.935 98
139,1,5 22
184. 0 . 32
2,000 <0
77,000 09
19,4*7 05
$020,009 55 $5,764,729 44 $2,654,761 63 $7,603,9/1 07 $43,021,498.2.! $13,366,774 7i $19,978,836 92 $37,158,934 49
Exclusive 01 Cities of Cincinnati and Cleveland.
4 53
* E xclusive o f City o f Louisville.
$290,000 Or $2,109,100 1H
3«,2 2 01
252,730 72
3,023 40
139.390 03
178,740 00
1,623 132 00
state.
$315/00 00
50,4 9 29
58,059 07
380,412 10
each
j 1 ABILITIES.
Ca ita1 stock. ...............
Mir. lus fund .......................
1Individ d profit*.................
National bank note* outsti’g
State b mk notes* Mt-tauui‘g
1): v d ndg unpaid . . . . .......
Individual deposits............
united * tat* s reports .......
Deposit of U.s. ms Officers
Due to n tioi al ban s ........
Liue’.o State b nksAbankera
N» te> a .i bills rediscou t e i
B; Is p yab e .................
of
$620,060 55 $5,761,729 44 $>,651,761 63 $7,604,9*0 67 $ 48,822,498 22 $13 *60 774 79 i 10,078,.36 92 $37,158,934 49
banks
$1,891,385 45
31.500 u0
n a t io n a l
T o t a l.............................
4,858 03
277,884 27
159, j5 1 00
RESOURCES
Indiana.
Arkansas.
CincinnaH.
Cleveland.
Kentucky.* I OUiSYi'l*.
Ohio.t
lennersee.
$171, 86 85 $2,07 ,6*0 34 $1,08 *,158 20 $3,222.i.-,0 9r> $22,8 >7.384 35 $3 634,13) S3
5,u08.S25 15 6.914 8 >3 4")
1,109.9' '6 0 2
29,750 9
40,82 i 11
10,262 48
4 4,25 ‘ »0
9.303 74
1*1,507 50
213,9*3 34
2)'»,o0" 00
917,900 00 1,714.300 00 14,542,700 ( 0 3,428.0 »0 (=0
2,27 ,5 O O' 12.899,35 1 10
1,975,200 00
545.01)> 00
50,000 00
5‘i,000 00
3 >0 000 0 )
£85 OuO fO
7 *4,0JO 00
800 <01 <0
6 ',000 00
481 350 00
0,2 0 00
1 70 •00
1,102,7 0 00
Sii9,500 00
10,i }<H) 09
8,15 t n0
8 ,250 i 0
168,475 20
04,195 19
41, 46 77
7,090 00
1,600 00
17,< 01 0)
155,548 79
5OO.047 20
?60.9is 08
11,438 08
5'<i,9 ;l 08 3,56',065 04
19c*.62> 19
838,03 ' 68
501,441 54 2,200,929 48
294,040 72
43\7.8 14
71.-558 22
222,712 00
10 877 10
34,844 20
10 l 512 30
553,215 73
233,9 1s 74
O', 474 7 2
119,470
56
1
>*5,1*4
51
60,393
85
103,813
71
500,61*
89
1*V'49 38
783,636 21
17,07 •55
2 0 7 .3 9 9
1,019.59> 8 »
227 0 *5 21
12 ,99s 19
22,859 18
162,92 ( 98
141,134 79
5,593 9>
108.495
76
25,713
91
53,028
27
2
2.928
34
16,577 60
«V *> ««
52,908 0«
339 41
3d 05
22.0 8 99
03,035 7 >
4%205 *4
180,909
34
110.103
(4
5 55! 78
ns.eoi
99
1,359
U
103,480
82
33o,l
99
b2
11,732 00
47,223 03
51,50 i 1-1
281,419 00
222,241 00
72,2 *4 (10
6,808 00
165.363 00
428,-185 09
44,498 00
17,250 00
10,518 l 0
541 0J
1.751 10
1.0 *5 00
4.4S0 09
53.( 09 9 i
99,8SI 7!
14,’.9*. 07
556 60
811 91
10,500 74
13,3.55 91
11,416 30
131,800 30
1.795 00
1,670 31
35.025 39
51.701 09
9*,7 '7 27
10,125 92
3,127 50
703,5uU no 21,106,190 00
26.623 00
568,5 *7 00 2,993,9 iO 00 1,321,710 00
347,447 00
235,293 00
Texas.
$514,1X13 86
17,999 *29
505i 0 l 00
175,0 0 0)
8»0 00
25.4 <8 90
34,110 80
01,517 48
2*‘,309 02
£0,404 88
25.7 8 16
4,98' 05
4,0u2 56
1870]
Lo rs and discounts..........
Overdr ifts............................
tJ.a. bond> to secure circn ’ n.
U.s. b nds to si-care de osits
U 8. nds&jec Tit. «-s «m ha^d
O h r stocks, bonds& mori’s
Due from redeem ng agents.
Due fr in o f'e r nat 1 ha >ks
Due from state bks A b’ kers
Rea> e-*ratp, furniture & tix’ s
Cunenr expenses.................
Premiums
......................
Checks a d other c is‘>i ems
Exchanges! rUlear House.
Bills o f national ba>.ks........
Bills of Srate b tn - s ..............
t r ic ion-il currency.............
Specie...................................
Legal tender notes ..........
Clearin'Housecerti-ic tes..
'lhi ee p rceut c rtificates..
454
RESOURCES
91,969 00
23,495 91
2 1 ,7 -7 17
7 5 3 ,9 j l 00
W is c o n s in .:}:
D e tro it.
M i lw a u k e e .
Iow a.
$ 3,2 60 ,86 6 09 $3,0 49 ,54 8 61 $1,3"*7.89*2 06 $6,511,1(13 I t
24 379 03
52,774 89
19,0 6 56
155.972 55
1,823.550 0 )
1,193,800 CO
3 ,7 6 > 150 00
747,000 (TO
1*10,0 0 0 )
250,00 ) 0 )
300,0*50 00
2( 0 ,000 00
1 3 1 ,7 0 ) 00
3 2,8 0 00
151,200 00
2 8 .'0 0 09
29,932 54
4.590 09
350,305 y9
689 108 93
426,952 93
4 9 1 /8 5 39
779.458 30
58,128 79
2 4 5 /7 7 04
179, *31 69
184.746 48
9 ,310 27
28, >50 12
1 3 3 ,0 3 ) 9L
21.032 19
113*513 14
142.815 55
99 3 8 71
3 4 4 / 4 5 34
2 i.5 6 7 60
41.058 92
15,3£0 32
15 ,684 78
11,750 01
6 ,2 )0 17
17,252 71
3 »,323 42
51,4 0 75
7 3 ,1 6 : 65
20.782 18
146,972 90
123 862 60
169.317 30
37,041 00
74 468 09
3 1,214 00
224,012 00
6 0)
812 00
20,133 99
23.085 75
49,792 49
12,273 61
6 .553 OS
23.7 S7 32
8,065 01
6 2.3 *0 19
£22,519 00
422.361 00
313,593 00
1,020,631 00
M in n s ^ a .
$ 3 ,1 4 1 ,3 1 7 37
* 4 .4 «0 08
1.711,50 i*0
306,009 00
7 *,5 5 0 00
f 0,199 23
582 602 51
1 -0 ,3 7 0 78
89,8 32 23
157,403 61
f 0 ,317 36
27,7 1 04
1 16,103 71
G5.000 no
60,0 10 09
3 5 ,0 0 ) 01
T otal................................. »23,4J6,0L S 39 $>2,98 5,6 22 14 $ 1 2 346,163 09 $ 6 ,'.7 2 ,5 8 9 57
395,001 00
$6,716,291; 14
40,000 0 )
$7,2(76,502 41
00 $ 1 ,7 8 0 ,0 0 0 00
16
331.159 04
37
2 00.810 94
TO
1 ,516,175 09
00
1 ,3 9 - 00
9
1.9 0 43
-7
2 / 8 5 245 24
48
144 "5 1 10
21
I D , 7 0 ' 34
53 61 61
0)
99
168,703 72
66
00
209 00
$ 1 /5 0 .0 0 0 00
277,064 58
140 110 3
804,834 00
15,000 00
L IA BILITIE S
C a rita l s t o c k ..................
Surplus Fund ....
U n d ivided p r o fits_____
Na'ional bank notes ont-d’g
Mate bank notes ouietand’g
Divid^n iv n 'paid__
in livicinal d p o s i t s .. .
$ 3,835,000
1,134,501
293,018
2,870.4^1
1 ,066
10,670
3 ,7 8 6 572
14, 41
23. M )
45.159
41,747
287,183
3 ,000
00 $ 1 ,7 5 0 ,0 '0 01
9»
3 '3 000 00
20?,524 62
84
00
1,026,239 00
00
4,365 00
00
41
2 ,1 9 », 125 70
13
1 5 /5 3 7 51
405 87^ 73
21
81
13 *.802 67
83
107,066 34
87
(0
$ 6,6 72 ,58 9 57
* Exclusive o f City o f Chicago.
t Exc'usive of C.ty o f Detroit.
$ 1,785,000
4 37,726
2 4 1 ,'1 9
1.582,935
00
(5
!8
00
150
2 ,494.972
45.653
2 8.86
19.335
3-<.109
19.4 8
1 /0 0 0
00
98
57
04
56
31
45
00
$ 8,7 16 ,29 0 14
$ 7 5 0,0 00
1 7 9 /H
62.7-<l
642,280
1 ,3 6 5 /0 6
1 >4,241
2 3 6 /8 7
297,313
106,207
00
?4
88
OJ
$ 3 ,8 6 2 /0 1
89 *,283
458.5 1
3, >14,0 6
2.176
2,362
5
,2
7.734
04
123 2 5
68
1 -2 ,8 9 8
91
52
84.4 2
97. '« 6
49
1 *3 030
85.001
$3,753,7S1 76 $14,30 5,7 32 86
% Exclusive of City of Milwaukee.
* 7 ,2 *6,2^2 42
693 00
2,3 2 7,2 6 17
82,741 47
70,032 52
9 0 / 9 0 30
39.5 87 15
$ 5 013,619 32
§ Exclusive of City o f St. Lou’ s.
| December,
U b. deposits .......
iieoosiis o f U. 8. dis. officers
1 tie <» nar onal b t ks
Due to ta ebuks & bai
Not s a •’ bills reuiscoc
Mils p ija ble.................
$ 6 570,001 00 $ 6,2 00 ,00 0 00
1 ,956,2 >S 93
1,9 7 *,o n o i
610,791 66
7 4.42S 47
5,589,201 00
4 ,592,356 0J
i.T 1 ' «
9 6 74 0 *
1,237 00
7 ,665 450 32 13,9 42 ,79 3 93
4 3.529 30
2 4 6 ,-9 52
1 0 5 ,4 ' 9 89
2 /0 1 ,1 4 6 37
9 '..770 77
2,4 9,4 ; 7 88
23 J ,112 49
163 200 IN)
4 ,00 o 09
state.
1 0,0< 0 00
$ 5,0 43 ,51 9 32
('
each
25, 00 00
$3,7 63 ,78 1 76 $14,30 5,7 31 83
157,788
65
16 259
46,641
483,113
or
0)
(0
71
79
00
M is s o u ri §
$ 2 .(5 6 7 /4 2 82
2 / 8 6 39
] , 1 8 2 / n o 00
iOO.OoO 00
89.950 00
319,853 64
287 277 40
92,046 67
83.008 17
11 *‘> 2 5 81
31,627 *0
?8 ,7 6 2 85
45,843 98
.. , . . .
159,571 ( 0
3°4 0 )
7.551 76
1 5 .6 U 23
382,440 00
banks
earing ti#»ns c. rtf flcat s
I'hrco per cent ceitilicutes.
M ic h ig a n , t
$ 3,2 68 ,90 5 69
101 975 15
3 ,358,30 • 00
100 0 0 00
37,501 00
174,152 08
491.947 30
265.062 24
83 6 6 91
375.21 1 41
76,263 91
8,680 32
123,99 j 41
n a t io n a l
I llin o is .*
C h ica g o .
$11,01 2,6 95 72 $16,4-20,11'■» 84
Ovenlrif-S ............................
*7 6 " 2 36
11 , ITS S i
U. S. ho id** t »se •• recir.-nl’ n 6.H5S.3 I) u;»
5 ,2 5 3 ,0 0 ) 0J
U. h lids t<>secure d epo-its
5*1 n. 0 01
U .s .b aid - <fe secn t'son h »n i
181,609 00
287,500 66
Oilier stocks b n ds& raort’ s
332,481 110
257,137 23
Due fr »m red. & ies agents
1,300.177 75
2,231,274 61
D u • f r o m o t 'i r n a ’ • b .m k s
4 05,914 89
408,445 95
Due fi n ->r, te V k s & b’ ker
2 :6 ,4 7 1 v7
281.6 >0 26
H**a! e * ate. furn ture. *£c . .
562,4 10 2»
6 5 '. 167 68
Current exp en ses...............
*0 3,1 62 40
130 8 '3 79
Prem ium . ......................
2 M 8 S 56
1 0 1 .U 3 6
Oiii. c< - ai.d o'h erc.ish items
2 JO.75 4 31
70,030 24
E xcises
0 earing House
1,9 i9,228 82
liil's o f national b iUKS. ..
281,688 00
36 5,224 00
Hills o f Suite banks...........
137 CO
Fractional c u r r e n c y ...........
50,777 OS
49,615 72
r-pecio , . , ........................
1 10,405 48
1 7 ,855 91
I egal t r.der i eves _______
3 ,722,256 00
1 ,3 1 7 .9 i 2 00
RB3olTBC£3.
Tutal.............................. $17,987,476 23
Nebraska.
Kansas.* Leavenworth.
$318,503 15
$311,308 fO
$1,102,921 27
2",083 73
1 ,037 79
18,402 30
2<K!,nD0 <K)
212.01)0 O'
225,000 i 0
1 0.000 1)0
20( .,000 00
450,0 0 00
9.850 00
15,40) O0
41,-5 ) 00
20,527 97
60,521 97
117,101 :i
1 4,3*1 Hi
f 5,97 > 31
403 258 t4
31,279 85
81,703 50
00,658 18
14,0-8 69
8,027 80
30,779 87
43,356 07
21,183 17
l23,7 '0 96
0,975 30
55,593 53
4,455 83
4,931 24
10.5»0 42
15,591 13
47,604 64
2b,502 79
Oregon.
$31),012 51
7,59 35
200,000 00
60,000 00
6 *,550 00
41,953 41
47,904 71
820 09
66,120 49
1,700 00
3,4 )4 75
20,057 23
6,045 25
Colorado.
$ >19,103 21
32,iK3 73
29 .0t)0 00
1 0 •'09 00
13:.009 00
17 8 5 12
600,50 5 15
179.443 41
10 >,051 47
109 294 00
27,321 75
9,625 0 )
21,077 37
Montana.
$121,196 10
8,943 73
49,rO ? CO
20,000 09
Utah.
$42,113 66
23,857 08
U5,i 00 00
5,544 r 1
4,057 22
2 0 13
10,758 91
15,780 37
4,2 )5 01
9,175 19
54,883 37
20,• 09 00
£0 590 00
2,033 53
90,f 90 81
22 744 41
1,1.87 96
22,389 48
149 91
Idaho.
$57.00! 97
11.574 72
36,C00 00
5,774
3' 8
02,500
13,478
25
95
29
59
82
77
4‘ 0 72
39,525 00
23, i 40 64
42,029 66
40,( 03 00
31,901 00
6,203 00
4, 87 S3
1,328 81
89,7 2 00
10.112 34
1,230 54
99,822 (’0
10.000 00
31,288 02
9,815 25
145,491 09
4 731 37
13,3)9 05
129,201 09
5 258 73
81,848 00
162,4ul 09
621 35
7,449 82
29,360 00
472 38
810 9i
5,450 00
28 25
18,7'6 ‘ 0
12,280 00
$241,064 76
$113,939 22
$257,751 03
$io ),o o no $100,000 00
$1,055,871 71 $1,251,210 63
$2,109,109 51 $1,000,439 24 $2,482,15 3_02
}
435 00
LIABILITIES.
$0,010,300 00
023,2 1 54
383,1 3 40
N li nal nan notes onts'd’g 3,292.400 0 i
$210,'7)0 00
21,095 40
38,107 29
18o,7U6 00
$700,000 00
03 ))05 69
11 -hi t-6
17!),' 09 to
$50 ),900
Hi,350
87.-05
160,0*1
S6,481 40
Divi ends nnp d d ...............
Individual deposits ......... 3,498,993 59
United St tea deposits.......
Deposits *»f U. S. is. Offi e i s
576, 83 03
Due to Nat onal i a i ks. ...
543,652 19
Du« fo Siate banks %bankers
20 ,0 0 i 0
2,182,081 04
419,320 97
86,892 52
8 ,170 12
2.222 77
1,776 t>7
98,200 00
328.375 81
77 0 0 25
204,048 37
19 407 43
8,882 10
1,*91,977 20
214 <62 09
413,’*88 >6
1 1.566 63
153,138 04
Capital stock.........................
so i 66
$201,000
5,0 '0
40,011
90,330
00
00
43
00
$350,000 00
72.500 00
62 730 54
251,000 00
$100,000 00
2 5,787 59
109.028 70
279 17. 82
4,508 70
1,552,555 f.3
>•3, 00 41
31,329 11
21,901 95
53,809 43
1IS,145 52
31,518 80
27,125 51
10,0i 0 03
1,703 90
35,930 00
14,240 97
21,770 71
123 77
121,143 00
7,0 0 00
2,272 57
63,125 00
147,820 02
68,539 34
447 93
19,021 79
147 11
16,GOG 66
$1,055,811 74 $1,<51,210 63
$2,801,109 51 $1,006,139 91 $2,432,163 02
$341,001 76
$413,936 22
$217,751 03
455
Total...............................$17,987,978 25
* Exclusive of City of Leavenworth.
00
00
64
0J
NATIONAL BANKS OF EACH STATE,
Ft. Louis.
L^ans and discounts............ $0,109,177 no
31,724 00
O v rd rafts...... .
............
U. S. bo ds to securecircul’ n 3,818,330 00
U. 8. bonds t »secure deposits
U. S bonds «fc secu ’ s on hand
o i so') 65
tJlhe - stocks, bonds & m oit’ s 1,305,110 74
3542,1 5 *20
Hue from red’g& n-s age ts.
111 6!9 12
I)u-*from other at 1 banks..
1^6.404 54
Dm fr m Mate b’ us & b’ kers
3B,sm 24
l;eal e tate, fur iture Jt fix’ s
91,710 43
Cut rent expense. .................
10 ,837 0>
P r m 'U s
21,814
15
Che ks and other cash it<ms.
30*,<in 61
b xchanges f r i'l< ar. llont-e
cl
7,n35
0.)
Bills of other national banks
1,110 no
Bills < f Sra'e bank*...............
15,013 81
Fractional cur eucy
........
110,314 61
1, 89.094 HO
L e g i l tender • ot s .............
4 5,000 00
Tiiree Per Cent Ceititicates..
456
[ December,
RAILROAD ITEMS.
RAILROAD ITEMS.
M obile and M ontgomery R ailroad .— The receip's from operations o f this road
for the years ending A pi it XO, 1St>9 m.d 1870, were as follows :
From passengers...........
From lreight.....................
From express.................
From Government transp.
From mails......................
From incicenta’ s .............
Expenses, v iz:
Conducting Transportation
Motive power......................
Maintenance o f way.......... .
M aintenance of cars..........
Steambo.it expenses...
Taxes...............................
Net receipts
1869.
$165,420 49
21«,«52 6}
14,8'i7 42j
S(),()<0 a i
18.6 0 00
10 381 26
1870.
$226,528 27
3 4.092 51
21,545 49
2,* 74 01
18,000 00
4,342 20
$441,921 79
|579,682 48
$97,061 92
80,0 80
106,732 06
3",731 22
29,62 > 53
4,021 44
$12\478 41
108,679 56
158,169 72
44,346 41
39,lh7 93
21,618 49
$348*116 32
$9ti,8u5 47
$492,531 fa
$87,150 96
The President in his report says :
The net earnings for the y.-a- ending April 3 \ 187°, as shown by the report o f
the Superintendent, provides for the purchase of 679 ton9 o f new rails ; for the
payment of int* rest on the oirstand ng d* bts of ev- ry description upon which it had
to be pai l up to the close o f the H.-ca1year; »n 1 iet.viii^ a halmce o f $2,181 04 cue
to preferred stock, which i* placed j|<»r the b ^ R of the company, to the credit o f
that account, the sura ht-im* too mal! to make a dividend. ]t a?8unus the character
of a special fund, bmiowed from ilie preferred st kholder, and it is hoped the
net earnings of the coming year will so mid to it as to enable ns by June 1, 1871,
to declare a dividend on ihi* class cf the cafital stick. Upon reference to the
condensed general staten ent of the c ndi i>n of the c mpany, which accompanies
this report, it will be seen, comj aring it ubh the sij-.temert of last year, that a
large amount of the debt then outstanding in the name c f the cld companies has
"been arranged :
There was then outsta ding in the r a x e o f the Alabama and Florida Railroad
....
........................... .................................... ..................... $609,310 5T
Company......
Mobile ynd Great NortLera Rai road ComDa'y.......................................... . . . .
72,039 16
M<*kirg tota’ ..................................................................................................... $081,34* 73
There is now outstanding in th name of th* Alabama and Flori la Railroad Com
pany...............
...............
............................................... ... $126,800 00
Mobile aLd Gre it Northern IPTread Company.........................................................
27v000<0
Total now outstanding.............................................................................................SlnS^OO 00
Of the debt** due bv the Alabama and Florida R ilr ad Company $58,800 is on
second and third m<r'g>*g« bonds that have never been p'esented, s ud the holders
are unknown to the company. T ey will no I'oubt come in during the *ear. The
remainder o f the deb> is f »r the firs mortgage bond* of the Mobile and Great North
ern Railroad Company end the bo’id* o f the Alabama and Florida Company,
endorsed by the direcor* of said c«»m any.
As ti e terms for settling this indebted
ness have been agreed ui» n, it i.i pr bd>l« that, by the end of the year there will
be no debt outstanding in the na e of the old companies.
The first mortgage bonds o f th3 Mold e and Montgomery Railnnd Company,
issued in lht.8 f r ..
. .
....
.......................................................... .
Have been useu t >tha amou -t o f ............................................................... . ! ................
Leaving !n hand.
$i,2ro,oco
894,1 CO
$456,OCO
"Which could have been coht, but it w; s deemed advisable not to do so, forcO
looking into the badly worn con iti n of the i on. especially through th * prairie,
the immediate necessity hr purr h »sir>g a laik-e amount to relay the track, a* d the
pressing want of n o r -'* nginps and cars to «t . the wor- lequired of the road, and
o f increased freight h *n *s at Mo tgon e»y satis Vd 'he hoard that, the proceeds
o f the i onds remaini g on h ,rid *e<»u d not meet these demands; and as it had further
become necessary to tx'.ei d the r ad into the city of Mooile, to preserve its position
RAILROAD ITEMS.
1870]
457
against projected competing lines, an ! as tl e only rreans of doing all this the Board
directed that appTcati n sin uM be male to the Legislature for the neces.-aiy anJ.
A bill was preptir d and placed before the Legislature, passed and approve ' by the
G 'veri or on ti»e 25th of Februa*y, 1870, aulhvizing the endorsement by the iState
of the fir.-t mortgage bonds of the company for $2 500,000 ; $l,0i 0.000 to be u-ed
in paying off the mortgage and j dgment lie a on the road; $ 5" 0,0n0 for repairs
an i improvement of the road between Montgomery and l ensas and increas- of
outfit and epuipment, ar d the remaining $1.000,U< 0 tor extending the road bom IV sas to the city of Mobile, 'i he bonds have l ern* prepared, date I April 25, *-S71>, and
are payable May 1,1900, with interest at the rate of eight per c-i»t per annum,
payable sen i-annually, from May 1, 1&70. The financial condition of the company,
April 80, 1870, was as follows :
Capit 'l Stock:
LIABILITIES.
O pital c >ium >n St c k .................... $1,1?9,900
A hi & F a. n. R Co. com'on stock
un< xchanped......................
..
90,400
M. & it. N. ft. R. Co com’ on stock
unexthungei...................................
32.3C0
Due on open nr count..........................
Net income due pitf. stock...............
Total
Total......................................
309,46^
'-*18
465 286
$4,1 3: ,966
Total common stock......................$1,262,6 0
Cost c f 164 rrPes road bed. w ;,h <11
P ef-rred canita1 s’ o e k ............. . 1,760,800
'
uppurtenan es thereto, from MontB hdecL debt secured by mortgage on
joinery, A a , to i e n s a s ............. $3,5nfvov
roau:
182,895
First Alort’ treb eds M & M .R .R ^ o . 891,000 242 paes. and fre gbt cars— ............
271,487
First mo tgage b nds Ala. Sc Fla.
25 1< c m o t i v e * ...............................................
60,*.00
3,5"0 Steamboats Sc Elmo a^d S u^tar..
K. R.........................................
S ;•ond 'o , <*o....................................
8-fMH> Machine stop tools and mateiialson 51/45
Thir.t do., do.......................................
27 ^00
h«nd...............
....... ■•••• 27,652
Do., do. M. & Gt. N. R. R ...............
‘^70 0 C'nr shop t< ols and materi -Is on hand
Rroaoway tools and matt-rials on
26,592
Total................................................. $986,5.0| hand........... ..........- ........... •
j D pot buildings »-t Mon'gom ry
Bo tied debt not fecured by mortgage:
' and on line o f road, rnacb ne a> d
Ii c m b’ds G. <fc FI. if. R ..........
7,800 |
bonds endorsed by Directors o f Al.
I car shop a Montgomery and PolSc FI. R. K. Uo...............................
54,0C0 I lard, and sect on h uses................
8,991
----------j O ’e h o i h a n d ................................
188,893
^otal..
$61,300 Due company ou open acc’ t .......
Floating Debt:
.
Bill- paj able..................................... 153,617 |
Total................................ ..........$ 1,535,966
President, Charles T. Pollard; Chief Engineer and General Superint nd nt, G.
Jordan; Auditor, George C. Ball.
G rand T runk R ailway —B eport for toe H alf Y ear E nding J une 30, 1870.—
The main line o f the Grand Trunk Railway o f Canada extends from Detroit, Mich.,
by way of Port Huron, Toronto, Kingston and Montreal, to Portland, Me., a distance
o f 851 miles. The section of this line between l)etr< it and Port Huron, 69 miles, and
between Portland and Island Pond, N. H , liO miles, comprising the part of the line
in ihe United Stales, are leased by the Grand Trunk Company. It owns also a
branch from Richmond, 76 miles east of Montreal, northeastward past Q ieb c t o
Rivi*?r du Loup, a dis ance of 222 miles, which has itself a baanch from Arihabaska
northward, to Three Rivers, 35 miles, and a line 40 mile9 *ong known as the Mon
treal, Laclii” e & Province Line Railway. It operates under a lease, in addition to ’ lie
eecti ns n me ! above, the Buffalo <fe Luke Huron Railway from Fort Erie (oppo-ite
Buff do) northwestward to Goderich 168 rai’es, and the Montreal cfe Champlain Rail
road f.om Montreal southward to Rouse’s Point, New Yo k, 49 miles. The entire
length of ines owned is 958 miles, of lines leased, 419 mdes, total, 1,377 miles.
'i he following report for the last half year wa9 made at the meeting of stockhoi ers on the 27th ult. :
July. 1S69.
July, 1S70The cross rcce;pts upon the whole undertaking, including the Buff Jo and
................................... £;t)4,567
£674,621.. champ ain in?., have been........................
Deduct the ordiaarv werk ng expenses ( eing at the r te <f
69. 6 per c ni) agaiLSt 69 yd oi the coir» sponGig half of latt
455,95S.. year
....................................................................................... £191,921
Ihe renewal-*, &c., cf the permanent w y an i works in the haif
77.039.. y^ar debited to revenue........................... ........................ .
66,781— 559,701
141,6V4 Leavng art available balance earned in ihe half year of.......................... £144,865
24.841..
Deduce . 0 8 9 on American eurreLCy................ .....................................
7, 87
£116,783
Balance
458
RAILROAI:
ITEM
[2 >ecember,
To this sura of £187,708 has to be adde f'.e balance rarded from the net revenue
acc unt of the 1asI half-\ ear of £ l 618; maKirg a total ba a re ot £139,326. Fiom
this, however, has to b^ deducted the amount o f post-l and military revenue due
for the h>lf-y«ar to the postal bondholder* o f £19,722; leaving the balance of
£119,604.
Comparing: this half-year with the corresponding period of 1869 there is an
incr. ase « f £1,935 in the passenger r eeipts. an •o f £ >8,0 1 in the freight reefipts,
making a total increase in the gross receipts of £29,946. The nnmber o f passen
gers carried was 7( 0,334, agai et » 55,8 0 and the gross freight t«nn**ee conveyed
was 612 959, ag inet 52 ,881. t-h wing an incr a9e in passenger traffic of 6.78 per
cent., si (I in goods traffic of 17.67 per cent. But the average receipt j er passenger
was only 6s. 5d. against 6s. 9d., and per ton of goods, only 15s. against 16s. 6d.
The-e figures explain the reason why the receipts hive not increase 1 in th- same
proportion with the traffic carried, ihe reason for this being found in thj d*8iri’Ctive
compe ition which was earned on between the several lines o f railroad from New
York to Cl icago.
T axation of the E rie and N ew Y on ? C entral R ailroad .— TheN. Y . Times
Washington dispatch of I 6 'h inst.
ea th- f d owii g ;
Jaj Gou'd, Presi ent of the Eiie R*i road Company, wrote to the Internal Revenue
Bureau that he had learned that an a sessmeni had been returned by the Superv s »r
against that Cf mpany for tax on the gross receipts and earnings alleged to have
been expendel in constriction, and asked that tne assessor might be instructed
to afford every facility lor presenting s ich facts rs were necessary to t e stated in a
claim w h ch woul be made for the payment of the tax aseesse . Accordingly the
Assessor of the Sxth New York District was instructed to proceed in ihe inv-stigatim which had already been comm-need according to the provisions of sec. ion
14 of the A ct <f July, 1864, rs amended, which would give the Company ample
facilities for presenting all the facts which they may desire bearing on 'he Company’s
liab lity to tax. And the Assessor has also been instructed to take all steps neces
sary for making the proper assessment.
TAX ON NEW YO RK CENTRAL DIVIDRNS.
The Internal Revenue Bureau has written to Assessor Lithrop, at Albany,
respecting the asressm nt of tax upon what is known as the “ Eight per cent, scrip
dividend,” declared by the New York Central R ilr<ad Company in favor of its
stock h olers. The Commissioner says a due regard for the interests and rights o f
the overnment forbid that au assessment should longer be delayed.
P acific R ailroads . — In the “ Bankers’ Garette ” on another page the figures in
regard to the leading lines of the Pacific railroads are pretented, as t ey ar con a ned
in tt e forthcoming report of the Secretary of the Interior. The following in addition
may be of interest:
The initial point of the Pacific Railroad ia Missouri is near Springfield, Mo, Fifty
miles are now completed, at a cost of $2 769,840. The company has issued b nds
secured by mortgage on its lands io the amount of $3,000,000. Ihe cost of the road
is $4,644,432 ; indebtedness, $n,044,32 . At the close o f the last fiscal year the
amou it o f the subscription stock o f the Southern Pacific Railroad was $ ,800,000.
actual:}* pai I in, $280,00'*. It has contracted for the purchase of the San Francisco
and S <n Jose Railroad for ths sum ot $2,770,000 gold, payment to be made and
possesion to be taken by the 31st of December next.
The Northern Pacific Railroad filed maps designating routes of road. Instructions
were th reupon issued for the withdrawal in Wisconsin, Minnesota and Oregon of
odd numbered sections of land, to which adverse rights had not attached, within
twenty m ils, and ir Washington Fenilory, s utb of the Seattle, o f such sections
within fi fty miles of each side of the roa 1.
dbe Union Pacific R i toad Company, Southern Branch, now the Missouri, Kansans
and Texas Railroad C-unpanv, the K nsas and Neosho Valley Railr ad Cmnpa y,
Lawrence and Fort Gibson Railroad Company, were fully heard in ’.he right o f
their respective companies, to construct railroads from the southern boundary of
Kansas through the Indian Ter itoy. I also corsidered the objections of lepmsentatives of certain Indian tribep, through whose lands the projec ed lines of road would
pass. After a most careful examination I reached the conclusicn that the existing
469
RAILROAD ITEMS.
1870]
laws and treaties authorized the construction of one railroad on certain conditions
which neither company had then performed. On a subsequent hearing it was shown
that the first-named company i ad complete 1 its road to a designated po nt on that
boundary, and I hold that it was entitled to extend it? line through said territory.
Evansville and C rawfordsville R ailroad . — The earnings o f this road for the
years euuiug August £1, 1869 and 1870, were as follows :
From
“
“
“
“
“
paspenge'B......................
freight............................
expruts...........................
n ail ..............................
n u ts ...............................
use o f engines and cars
1869.
. . $ 1 8 5 ,2 8 3
..
2 4 5 ,7 7 5
..
1 2 , *88
9 ,4 0 0
295
3 ,7 . 5
Total...................................
Expellees, v?z.:
Running road
.....................
Maintenance of t a k . . . .......
“
“
br dges, etc..
Repairs of engines an . cars..,
oem ral exp n-es .......
Chai ge o f line at Vincennes..
. . $ 4 5 6 ,9 7 8 10
Total .................................
Net earnings
......................
Interest and taxes...................
. . $ 2 8 5 ,4 5 1 2 9
. . $ 1 7 1 ,5 6 81
..
I t 0 ,6 1 3 7 2
B alance...........................
..
$ 7 5 ,4 7 4 2 8
..
..
..
1 1 ,7 4 0 7 8
£ 9 ,0 6 1 bO
6 4 ,5 3 5 £ 9
..
1870.
$ 2 0 8 .- 4 9
2 79 ,.' 0 5
1 4 ,3 3 4
9 ,5 8 3
1 .8 7 2
3 ,1 5 8
63
32
4S
00
00
62
94
68
38
34
00
83
$ 5 1 6 , S „ 4 17
$ 8 0 /7 2
1 2 8 ,6 0
15,911*
5 1 /8 9
7 0 .0 1
2 ,7 8 1
99
53
20
59
17
41
$ 3 5 0 .1 3 4 8 9
$ 6 6 .1 9 9 2 8
l :6 ,< .5 2 4 8
$ 5 0 ,0 4 6 8 0
$64,81*3 0 9
The receipts from all sources during the year were 8516,826 46, and the expendi
tures $513,641 79 ; balance, increase in assets, $3,184 84.
G e n e r a l B a la n c e Sh e e t , A
Construction o f road...
Eqr.l.y" e« t .......................
R- al« staie .....................
Dit-trictf i ground stock
Fuel on h*nd....................
fcupplies in shops..............
r a>h........................ ............................... .
EvansvUe, Henderson &. Masnv l'e RR. bonds,
Due from agents................................................
Open accounts........................................... .........
Capital stock paid in ........................
Fractional s^rip . . . .........................
UncLum- d stock Dividends.. ___
Prt f rr tl sto k ..............................
Seven p r ceni bonds, main line...
Less iede< meri by t-imi g iu n d ....,
Rockv i.e extension bonds.............
Due other ii e s ................................
Oth- r liabilities
.........................
Income »cc< n o t :
Earn ngs expe.ndei in construction
Balance o f account....... ..................
u gu st
31, 1S70.
$2,417/57
372,959
9,984
1,100
#8,777 90
19,799 26
28.795
6,800
10,024
12,780
(0
00
05
54—
28,577 10
58,400 19
$2,887,91 3
.................... $1,001,421
....................
8.181
.....................
24,450
.....................
I d , 000
#1 /90/0 0 00
55,010 10— 1,0^5,000
...............
150,000
$19,559 10
17,004 53—
36,553
$460 974 98
61,402 2 1 -
92
99
54
GO
80
13
33
42
00
00
00
63
522,377 19
$2,887,993 SO
B oston, H artford and E rie R ailroad .— The following is from the Boston Jour
nal: The Bo.-t< n, Hartford and Erie question was again bef re the United St >tes
Distr ct t/« urr, Judge Shepley presiding, on a motion to dismiss for want of jurisdicti< n in bankruptcy. Immediately upon the opei.iDg of the court Mr. W. G. Rus
sell f* r the petitioners in bankruptcy, said that an arrangement had been made for a
wiihdrawal o f the motion until afier a contract had been made in which all parties
were a geed, that the unfinished portion of the load should be completed lather than
allow it to go to waste. U< der this arrangement it was intended to applv for its
confirmation in the Sia>e courts, where receiver* had been appointed, and also to the
United States Cou t The matter of the i<junction was arranged so that the Court
would n t be troubled wiih it. Judge Shep ey said that, provi ing he should enter
tain jurisdiction, he had no doubt of the authority to allow the contract to be made
460
RAILROAD ITEMS.
\December,
to prevent the property o f the road fo m running: to wfiste. After consultation by
the counsel Mr. Russell said that all parties had agreed to a post i onemen*. until
the 29th o f November, on ac ount of a contract made with Vlr. Munson, under the
sancti n of the several State courts i i which receivers had been appoint* I. The
contract provi les that the road from Putnam to Willi nantic, now unfinished, shall
be completed on t> e 1st of M»y, 187', instead of the 1 t of January, 1871, as speci
fied in the contr ct made v ith Mr. B ooks, one of the receives; th »t it shall be
finished for $300,000 instead of $40 ,000 in that conn act, or $460,000 in a previous
contract; that the sum shall be payable in receivers* certificates, r u n n i n g three years
at six per cent, secured by th e ‘26 miles of roa i between Putnam and Willimantic,
and the income of the read in Connecticut as in former agreements— the certificates
to be cashed by Mr. Munson at 80 per cent, and the bondholders to be allowed to t ike
them at pro rata. The Court assented to the agreement of counsel, and the case was
postpone 1 until Nov. 29, 1870.
W estern and A t l a 'TIO R ailroad . —This railroad, extending from Atlanta. Ga.
north by west 138 miles to Chattanooga, Turn., is the pr« perry <f the S ate of
Georgia, and h is been operated by h hith ito. But the L gislature <*f thAr State
has pas ed an act aut oiizmg the Governor to lease the road f r twenty years, for a
monthly rental of i ot less than $.'5,000, to not less than seven lessees, worth
together not less than $50 >,00 ’, a nmj rity in the number and in the interest to be
residents o f G orgia. These lessees must give bonds to secure tne payment of the
rental for $8,000, U0, of which security $5.0 0,000 must be in Georgia, an i the re
mainder, if out of the State, must be leal estate or railroad property. No rai read or
express company or combination of them may become the lessees. The eni.es for local
freights are limited to the average rates charge * on the Macon and Western, the
Georg a Railroad and the Central Railroad of Georgia. No discrimin ti n can be
made in favor of any other tailroad or any person. This property is said to be
woith about $5,<'00,000. F< r the last year reported the gross ea nings were $ ,138,800, and the operating expanses 58.58 per cent, or $688,180, leaving a® net earnings
$150,120;abut $134,000 ot tt is were expended f r improvement®. It n the main line
of connection between Georgia and tie Northwest.—Railroad Gazette
G reat W estern R ailw ay of C anada. — The semi-annual meeting o f this com
pany was held in London, England, on the 12th Oct., at which the following report of
the directors for the last half year was pres nted : The receipts on capita account
during the halt year ending 31st July, 1870, am- unted to £5,149 7s. S I., and con
sists of balance of arrears of calls on original shares, instalments on pteference stock,
<fcc„ as detailed in capital account No. 1. The outlav on capital account amounted to
£20,513 18s.
Thu aggregate expenditure to 31st July am >t;nled to £5,5«<7,954 i7s.
7d., leav ng a balance at the credit capital account of £31,448 4s. 5 I. I’he receipts
and expenditure on revenue account for the half year have been as fo lows :
Grov» receipts..................................................................... .................................................. £10^,900
Working expenses, including renewals............................................................................. z51,s24
£J 57,076
From which is deducted :
Interest on bonds, &c., (less interest received)................................................. £1*2.853
Die nunt and charge* ou conv rai >n of m ruan funds, &o............................... 25,*.82
Loss o i •orKin< Erie and Niagara Railway...........................................................
4; 2
A m o u n t set aside for renew al i<f f rry steumnrs .................................................
2,UtO
Baanceon account paid to Grand f»uuk C.-mpany for use o f iitpanadeand
staiion at 'ioron to............................................................................................ .
2,1 r9
Special vote to D ire cto rs.....................................................................................
1,510
----------- 74,201
Add profit on working fhdt and Guelph It silway...................................................
561
Balance lrom last ha.f year....................................................................................... 2,054
---------Available for dividend...........................................
£3.’,875
2/15
£*5,4)0
The half year’s dividend on the 6 per cent preference stock amount is to £ l 1,4 52
19s., leaving a balance of £74,036 13s. lOd. From this bait nee the directors re
commend a dividend on the shares at the rate of 4 per cent per annum, free of in
come tax, payable in London on 26th October, which will absorb £ 7 o,73 j 18s., and
1870]
RAILROAD ITEMS.
461
leave a hi lance o f £3,302 15s. 10d. to be carried forward to the next half year. The
fo'bw ing table exhibits the receipts and expenses for the seven corresponding half
E xpen ses.
Jhali y e a r
e n d in g
July.
Passengers,
m ilo nd
suii dries.
1854............... _____£125,281
1865...............
186................ .......... 172.731
3SOT .............
1808 . .. . ... .......... 155,(81
18 ...............
1370 ............
R e c e ip t s ,
Freight
a ^ jive
stock.
Rents.
£189/81
141,028
109,576
199,22 L
200,019
226,200
254,2*9
£5" 7
716
854
1,115
948
937
806
Total.
£114,939
284 565
348,102
305,701
350,6-19
3 6.167
408,899
Per
cent of
Inc'tiding
rentw’als.
JilOSS
£ 171,452
178,803
175,746
132.7(8
208.4(31
123 ,767
251,823
rec i» ts.
54 44
55.t l
51.vl
49 98
58.45
60.45
61.58
C onnecticut and P assumpsio R ivers R ailroad .— The receipts from operations o f
this r mil for the thiruen mouths ending Ju.*e 30, 1S/0, were as follows :
Fro
Fiom
From
Frt.in
From
passengers.......................................................................................................... . $105,970 56
f; Ii*hts............................................................................................................. ... £65,251 29
no ils........................................................................................................................ 12,043 42
exp e ls ....................................................................................................................
7,£4 t 00
r«a.ta.........................
.........................................................................................
4,546 15
$585,151 32
Expenses, viz:
Road department............................................................................................$168,365 .39
Rol ug stock........ _............................. ...................................................... 54,176 54
Stalin s »nd bui dings ....................................... ....................................... 22,696 39
Fr- igbt uepartment................................................................. .................... 29,593 80
Passenger d partment ................................................. ................................ 21,6.3 24
General expanses......................................................... ................................
49 <*83 65
M i.ce Lmeuus............................................................................................... .. £9.558 13
405,687 84
Ealanc?...............................................................................................................
1179,463 48
TRIAL BALANCE, AUGUST 19, lb 7 0 .
C on d u ctio n ...................................... ........................................................................ ..$3,i,082,176 01
Noies r ce vable.......... ............ ..........
..............................................................
8,921 98
Superintendent, including stoci and materia's on baud, aod sundry accounts unre tie ........................................................................................................................... 144,305 01
W ood lots............................................................................. .........................................
5. £78 14
Ag ntfl 1 r co.lections....................................................................................................
1,3.1 (0
C sh .................................................................................................................................
7.925 39
Excise tax............................................. *...................................................................
71 60
Memphremagog House................................................................. .— ......................
47.621 88
$o,297,'862 81
$17, 55i 67
Lyndon lands......................................................................................................
2 , U8 60
Coupons uncalled for...................... . ......................................... ...................
Div den s . . . ........................................................................................................
98* 34
Reserve...................................................................................... ..................................
91, 704 92
Stock issued............................................................................................................... ». 2,122. 900 00
B n eil debt....................................................................................................................
475. OoO 00
Not s payaole.................................................................................................................
481. 006 10
TrU'-eesot sinking fund...............................................................................................
10<.,100 00
P irtint payments ac’ t sub:*cr piion.............................................. .............................
3, ,368 23
United Staies Government................
1 252 75
$8,297,8o2 t l
N e w Y ork C entral R ailroad S crip D ividend T ax .*—A special dispatch to the
New Y»»ik T>mes, dated Washington, N<>v. 22, gives the following :— The primipal
matter of interest which enlivened the dreary portals of the Treasury ibis etoim y
November day, was the pesence of Commodore Vanderbilt and his party of tailioaa
men, consisting of Horace F. Clark, C.iester W. Cda in and Augurtus Schell, Etqs.
A few days since Acting Commissioner Douglass c rdered Assessor Lathrop, at
Albany, to proceed with the rata ures lor the c«» lecti n of the t x on the eighiy per
cent stock dividends issued in 1869 by the New York Central lia iloa d Company.
This matter has been delayed for some time because it was a big case, but Air.
Douglass thinks that is not a good reason for lurther delay. The fresh action of tbe
Department brought the Commodore and his fti**uds over here, and they a peaied
before Mr. Douglass and Solicitor ^miih, at 12 o’clock t< -day, not for the purpose o f
arguing the case on its meiits, but for the purpose of asking additional time iu which
462
k a il r o a d
it e m s .
[ D ecem b er,
to make up fr.m their books certain statements and statistics which they desire to
exhibit, a"d which they have been he etofore unable to prepare because ot the
sickness and absence of ihe t easurerof the company. Commissioner Dunglasafin dly
agreed to allow until the 2d o f January next for this purpose, the condith n being
that the case is to he argue 1 on its meiits, in the meantime, and Assessor Lathrop
was ins ructed accordingly. The claim of the Company is that the eighty per cent
certiticale is not a scrip dividend within the contemplation of that provision of the
liw which 1 vi s a tax upon such dividends, an I that they ha"e paid he tax upon
the dividends which have be. n declared on such certificates since they were issued,
the same as upon the old stock. The amount of tax which is contingent upon the
decision of ihe ca-e is $1,100,000.
T e n n e s s e e R a il r o a d s — N o B id d e r s o x t h e 3 d I n st an t . — At the time stated,
the Commissioners and i flicers of the State, appointed by the General Assembly to
sell (.lie State’s interest in the fourteen delinquent railro.ds, met at the capito yes
terday and proceeded to offer for sale said in erest. There being no bidders, there
was no sal*’ . This was raving principally to the large amount these roids are in
debted to the State. We understand that the Commissioners will memorialize
the Legislature to take lurther action in the matter, and until then there will be no
other steps taken to dispose i f said inte.ests.
Before the sa'e was announced Mr. Pcnnebaker read a notice stating that only the
State’s interest in (lie roads would be sold, and that the purchasers would be
liable for all future claims that might arise. A ll the Commissioners were present
with the exception of Judge Archibald Wright. After it was ascertained that n . sale
could be made tne Commissioners adjourned until the 6th of December ntx:., when
t h e y will submit then report to the General Assembly.— Nashville Union.
P h i l a d e l p h i a a n d R e a d in g R a i l r o a d . — The 1 hiladelphia and Reading Railroad
Company have agreed upon terms fur the purchase or perpetual leasing of the Phila
delphia, Germantown and Norristown Railroad and its equipments. The conduit m
are, the i. crease of the capital stock of the Norristown 35 per cent, and the guar ntee
of 12 per c.nt annual dividends on the entire capital as increased. Tne ca; ital of
the Norristown company, by i,s last annual report was 1,595,750, including amounts
of loan converted. This sum increased by 35 per cent, will swell the capital to
$2,151,292, and 12 per ctnt on which will be $258,511. I he total amount of funded
debt as shown by the last report was $55,90.'. I he road, including the Geirnantowu b anch, is 20 miles 1mg, besides a branch from Conshohocken i f some 6 miles,
made within the current year. The equipment of the road is some twenty-five locomotiv s an 1 2 0 or 215 care of all kinds. It has teal (state valued at $54 >,o00.
One o f the re sons advanced for this purchase or permanent leaBe is that it. will give
the Reading Railroad more room at its city end and free admission at ail times to
the heart of the city at Ninth and Ore n dreets, the Noiristown Railroad Compan\ owning its road-bed in fee. Ih e arrangement has been consummate t, and while
it increa-es the income of the Norrristown roai, it is also considered a good thing for
the Reading.
N e w O r l e a n s , M o b il e a n d C h a t t a n o o g a . — This line was completed between
N e w Oi leans and Mobile on the 29th ult., and a train ran through the same day.
It will he operated in connection with the Mobile and Ohio Railroad as a route be
tween New Orleans and the North, and passenger traius will run through between
Columbus, K y., an t New Orleans.
O h io a n d M i s s i s s i p p i . —The difficulties in the way of a joint occupation of a bridge
across the Ohio at Louisville, by the Jefferson an I Indianapolis, and the Ohio and
Mississippi Railroads, have been satisfactorily adjusted, and the additional track for
the broad gauge line w II be put down immediately. With the entrance of the Ohio
and Mississippi road to Louisville there will be three competing railway lines lor
Eastern freights— . ffbrsonville, Madison and Indianapolis, the Ohio and Missi-sippi,
and the Cincinnati anu Louisville short line— the first two are on the Indiana side of
the river, ani the ihir 1 is in Kentucky.— Exchange.
— The sales of land by the Union Pacific Railroad were for the months of
September. 14,637 acre fur
...................................................................................... $5",731 £5
October 13.S01 acres for
...
........................................................ .................
49,S15 34
Tctal s.dest date are 252,6’5 acres, for..................................................................... 1,143,144 66
Average per acre
.................................................................................................
Amount o f Land Grant Bonds cancelled to date................... ...................................
4 54
641,000 00
1870]
463
RAILROAD ITEMS,
U nion P acific R ailroad . — Earnings and expenses four months 1669, comprred
with 1870 :
1809.
Ju ly ........................
August .................
September............
October..................
Earnings.
1870.
July........................
August ...............
September. ..........
Expenses.
$5 *,421 55
465 443 26
4 -5.916 61
517,185 99
Net Income.
$115,1 8 =10
152,142 12
852,520 29
482,479 12
$1,916,997 42
$1,082,279 93
33
93
16
*8
f 25M08 06
314,12 - 90
442,3- 2 77
373,093 52
$1 310,442 :5
$5r6,564 6?
$1,E85.285 25
$3u3,0 5 82
$388.3*0
349,329
286 !o8
346,604
T o t - 1 .............
Increase over 1869. .......................... $245,549 35
N o t e -ucioner, i860, earnings extra large, owing to fre’ght on material for Utah Central
Railroad, be ng all charged up in that u on h.
IS o t e —1 citase o f expenses October, 1870, over last month, owing to payment c f $67,000
territorial t.xcs.
— The Maine Central and the Portland
Kennebec railroad companies o f Maine
have made arrangements for the practical consolidation o f thes** roads under one
management for gr ate*' economy in working expenses. The i l»n is to maRe the
Portland and Kennebec road the trunk line fiom Portland to Kendall’s Mills, thence
branching off to Bangor and Skow began res, ectively. The broad gauge of the Mam
Central rc ad is to be changed to the narrow gauge, to conform with the other r ad,
and also to allow a through connection to Boston. As a pait of the plan th* guage
of the European and liorth American railway will a'so be changed, and the New
Brunswick section of the line will comply with the arrangement. Tt is wt i leave
no broad guage railroad in the State excepting the G and Trunk
The Maine
Central, the P» rtUnd and Kennebec, and the European and North American ltai.way companies, will then probably apply to the next Legislature for an act to
consolidate them in one company in law as they w ills on be in fact.
— Receipts and expenditures o f the United States for the first quarter of the fiscal
y e a r:
REVENUE AND EXPENSE8— FIRST QUARTER.
July 1 to Sept. 30.
From customs....................
Internal taxes......................
Lands...................................
Miscel an o u s .................
Total revenues..............
To c i v i l ............................... ...................
W ar......................................
Navy — .............................. ....................
Pensions and interest.......
Interest.......... ....... . . . . .
Total expenses.............
1868-9.
Johnson.
$21,227,106*
5,*'04.185
1869-70.
Grant.
$52,518,922
46,926,352
893 864
7,412.484
l 1-70-71.
Gra t.
$57,7 9.473
4.',147,138
842,438
7,382,181
$107,831,622
$11,102,21 2
13/95,468
5,782,631
13,547,943
37,4 2,210
$115,101,vSO
$18,207,242
10,218,538
4,815,238
13,82 ,452
"39,-.96,450
$85,480,514
$86,562,920
— The Lel igh Valley Railroad Company have just const mrnated an important
arrangement wnh the iNew York and Erie Railroad Company by the Lying of a
third rail on both tracks of the latter road, which is of broad guage, from Waveily,
the present terminus of the Lehigh Valley roa », north to Elmira, a distance of
some eighteen miles. The laying ot‘ the third rail i9 completed, an f the Lehigh
Company will, on Wednesday next, ticket passengers and deliver freight through
Elmira instead of Waverly as at present.
♦The civil expenses in 1868 include $7,200,000 paid for Alaska, and the interest expenses of
1870 include ibout $3,000,000 paid on the Sinking Fund Bonds, canceled at close of July
under recent act of Congress.
464
OBSTRUCTIONS TO TRADE.
[December,
OBSTRUCTIONS TO TRADE *
One very serious obstacle to tlie general trade of the country, foreign and
domestic, is the heavy Railroad tolls imposed in consequence of extmsive
combinations by managers of different naturally competing lines, who are
thus enabh d to establish exorbitant rates for freight.
This has already become an evil of great magnitude, and is evidently
inc easing with the const nt extension of railroads, and the increase of these
combina ions, so that the industry of some sections of the country is already
sensibly affected by it.
The results of these monopolies are two fold: 1. They discourage production,
for when it takes the value of one bushel of wheat to get another bushel to
market, the inducement to raise wheat is diminished ; so of all other products.
The consequence is that farmers cannot afford to cultivate their least produc
tive lands at all, except so lar as they consume their own products, or find sale
for them near home.
2. To increase the cost of products at the place of exportation, is to diminish
trade, especially foreign commerce. All that is excessive in tolls is just so
much protection to the agriculture of other countries. If it cost ten or fifteen
cents per bushel more to transport wheat from Iowa to New York than it
ought, the wheat grower on the shores of the Black Sea who competes with
the American producer in the markets of Europe has the full advantage of
it, and will increase his production and profits accordingly.
Duties upon exports which come finally into competition with foreign pro
ductions, are justly considered injurious to the industry and trade o f a country ;
but excessive tolls have the same effect, besides being more objectionable from
the consideration that while duties would go into the public treasury, and con
stitute a part of the national revenue,' and thus relieve the whole people
of a part of the public burdens, tolls only enrich the few who own or manage
railroads.
This evil, already great, will doubtless become more and more onerous until
Congress interferes by some general legislation upon the subject. It is not
our province to argue a point of Constitutional Law, but if Congress has
the power “ to regulate commerce with foreign nations and among the several
states” it would seem quite clear that it had a right to legislate upon a
matter so essential to tbe very existence of commerce, and the welfare of
the different sections of the Union as that of internal transportation. Foreign
commerce has ever been under the special guardianship of the national legisla
ture, but how much more so, ought the domestiq trade of the country to receive
its watclifal supervision, that no obstacle be interposed to the most free and
full development ot the national industry.
W e think this subject worthy of immediate attention on the part of our
statesmen as well as the general public. Ought not the entire railroad system
to be placed under the care and control of the Secretary of the Interior, duly
authorized to require such returns annually, or oftener. of all railroad and
transportation companies, as will afford definite information upon every point
essential to a fu ll. understanding of their operations, their organization and
management? If a Comptroller of the Currency is necessary, why not a Comp
trailer of Railroads?
• fro m the Manuscript o! ihe lorthcomiu 1e.i larged ecitionoi “ Walker’ secie ice of Wealth.'
IMMIGHATION AT N t W
1870!
465
YORK.
MORE THAN THREE THOUSAND PAGES A YEAR.
LittelVs Living Age, being published in weekly numbers of sixty-four page
each, gives to its readers moie than three thousand double column octavo pages a
year of the most valuable, instructive and entertaining reading of the day. “ History,
biography, fiction, poetry, wit, science, politics, criiicism, art,— wbat is not here ?’’
It is the only compi’ ation that presents with a satisfactory completeness as well
as f.eshness, the best literature ot the almost innumerable and generally inaccessible
European quarterlies, nunthlieaand weeklies— a Literature embracing the produc
tions of the ablest and moft cultured writers living. It is therefore indispensable to
every one who desires a “ thorough compendium nf all that is admirable and note
worthy in the literary world,” who has a taste for the beat literature, or desires to
keep pace with the intellectual progress of the age.
The Living Age i9 pronounced by Rev. Eenry Ward Beecher, The Nation, New
York, and otner high critical authority to be the “ best of all our eclectic publica
tions
and we can do our readers no better service than by calling their careful
attention to its Prospectus, published in this paper.
IMMIGRATION A T N E W YORK,
The following shows the movement as reported by the Commissioners :
From Sent. 30, 1819, to Dec. 31, 186'>, the to al numler ot immigrants ariiving
at this port was 5,062,414. From May 5, 1847, (when the Comini sion was i« undedj,
to Jan. 1, 1870, the total of immigrant arrival was 4,297,98o ; of which numler cf
1,664,009 were from Ireland, and 4,186,254 were from Germany.
The arrivals for 1870, oown to Nov. 1, a»e as follows :
January................
4,618
February.................................................. 5 877
March........................................................ 1-2.091
A pril.................. ....... f . ................ .
*7,762
May.............................................................46,828
June..........................................................3*2,464 t
J u l y ......................................................... 19,81 4
August................................................... 1599
September................................................ i
October.................................................... 3,V25
Total
R9,527
Adding this amount to the total number of immigrants si r« May
i «>i'/,
(4,297,9801, we find that, while the present commission has beea in o eta t i o i , t he re
have arrived at this port, down to the 1st of November, ls7u, a gr, IK. . ul .. of
4,487,517 immigrants.
The comparative immigration of Irish and Germans since 1847 has been as io lows:
.
From
From
From
Lead'd. Germa nv.
jjc and.
...
53,180 1859
1*47..........
52,946
• 2,652
61,971 1860
..
1848
..................
98,161
4*1*130
1849
.....................
112,591
55, 05 1861..............
25,784
45,535 1662................
1850
117.038
32,217
6. ,91 •I 1863................
1851...............................
163,306
92,157
1852..................................
118,131
118.611 | 1 -6 4 ,.................
llw .644 i 1865......................
113,164
70,11
1853 .
176,986 1866.............
82,3 2
1854
___________
68,047
52,892 1867................
43 043
1855
....................
05,1J4
56.’ 43 1668................
44,276
1856
....................
47,: 71
80,974 1869......................
57 119
1857
....................
66,204
25,075
31,874
1858..
T o t a l........................................................... - ........ ......................... ....1,644,009
Fiom
Gir^.; ny.
28 ‘ 70
£7,.-y»
r. . 39
3. .7(1
35,0 •?
57,4 6
83,451
106,716
117,591
101,989
99,605
1,616,255
has been as fo llo w s :
January..........................
F e b r u a r y .....................
March ............................
A pril................................
way . . . ........................
Iiich.
1,011
1,4H
3,409
9,799
13,727
T o t J to-Nov. 1 . . . . . .
German. |
V 111 .June........................
1,634 |
[ J u ly .........................
4 142 j A u g u s t ..................
8,726 S ep tem b er.............
18,370 ., Oc o b e r ..................
Irish.
4,(134
German.
12,925
7,422
3,346
1 :-30
J,792
63,377
T h e Germ an immigration would have been even greater but for the war in Europe.
A» it is, it exceeds the Irish immigration for this year by 5 . 0 0 1 : but in the grand
aggregate, since 1847, the Irish are ahead, 27,765 jp to Nov. 1, 1870.
466
c o m m e r c ia l
chronicle
and
r e view
.
[ December ,
COMMERCIAL CHRONICLE AND REVIEW
Monetary Affairs—Rates of Loans and Discounts—Bonds sold at New York Stock Exchange
Board—Price o f Government Securities at New York—Course o f Consols and American
Secmities at New York—Opening, Highest, Lowest and Closing Prices at the New York
Stock Exchange—General Movement o f Coin and Bullion at New York-Course of Gold
at New York—Course of Fore gu Exchange at New York.
The business o f Novem ber has been, on the whole, steadier and more satisfac
tory than might have been expected.
W ith the effects upon our trade and
exchange o f the great war waging on the continent, and with the close danger
o f a second, involving probably five o f the principal powers o f Europe, it might
very reasonably have been supposed that affairs cn this side would have drifted
into something like pan ic; fortunately, however, our people, while not insensible
to the daDger have preserved their composure, and the markets have fluctuated
little, compared with the gravity o f the situation. Indeed, past experience
has so strikingly shown that, under our present curiency system, we are to a
large extent protected against the convulsions o f the European money markets,
that our people have learnt to receive foreign financial crises with comparative
composure, and the effects are chiefly confined to one o r two staples o f export,
to the gold premium and to the value o f those o f our securities held abroad.
At
the same time, the extreme gravity o f the European situation has produced a
generally cautious feeling, which has been especially apparent in reference to
loans or enterprises running into the future ; and for this reason business, in some
departments especially, has lacked spirit and activity.
The money market has maintained a degree o f ease quite remarkable for this
season o f the year.
In this city, “ call ” borrowers have supplied their wants
at 4 per cent, and the higher grades o f commercial paper have been in demand
at 6'^@8 per cent. This unusual ease may be traced in part to the qufet of
speculation and the cautious tone o f business above alluded t o ;
but it is
perhaps more attributable to the absence of any demand o f moment from
ihe Western cities in connection with grain and pork movements. Indeed
currency has come in this direction from Chicago, while onr remittances to
Cincinnati 1 ave been quite moderate. A t the close o f the month the indica
tions favored the probability o f increased shipments o f currency to the latter
city, so soon as cold weather should set in, but the rate of interest here remained
as low as at any period o f the month.
PRICK S OP GOVERNMENT SECU RITIES A T NEW YO R K .
6 ’ *» '-’ p n
1881.
D a y o i m o n th .
1862.
3 .........................................
4 .........................................
...............................
7 ..................................... . ................................
...........................
8 .......................................
a .........................................
1 0 . ....................................
l l > .......................................
.............
r »
............................. ........................ .
}t.............:
113%
..........
1 13 % “ 10b%
1 1 3 * ^ 1 0 !:*
1861.
1 0 i*
1865.
io s *
lo t*
lo t*
107
lo t*
lo t *
lo t *
lo t*
lo t*
io ;*
118*
1C 8*
:::
lo t *
1 7
107
* cw ,
1865.
110*
% 111)
109*
1 0 '%
It9 *
lo t *
....
lo t *
lo t*
109*
1 9 *
109*
lo t*
1 07 %
107%
,
............................. .
r r t,
K IM
1 /:
l o t T lo t *
lots*
109*
109*
101*
109*
109*
109*
109*
109*
109*
1U «*
10S*
1 09
109*
1U 9'
101
i 8 . . . . ....... ... . . . . .
1867.
110*
110*
110*
ll,9 *
109*
109*
lo o *
1
ta t
‘
r i!
6’ a
1 0 -4 0
1 S 68 . c ’ p n s . c u r ’ c y
110*
ill
106%
107
in *
107
iio *
100*
i n *
106%
109%
111%
110
lo o * ;
10 *
in *
in *
109*
106*
110
.....
n o
n o
in *
100*
106*
... .
106*
109* 1 0 6 * i n
106*
10,*' 1 0 6 * M ii*
.....
vXf
1870]
467
COMMERCE I. CHRONICLE AND REVIEW.
21.................................
22....... ....................... .
23.................................
10774 10734 10734 10334
109*
10934
Holiday.
107
ioV* 107
10934
107
10754
107X
10734 10934
107* iiiittf
10934
l o i a 1.77
10934
24....................................
25.................................
23.................................
23.................................
30.................................
Opening......................
H ig h e st............................ ...............
L ow est................ ..
Closing...................
10934
11334 109*
107X
107?;
10774
10774
10T
1U7
10334
10334
10874
107*
11034
11034
109
10934
10934
106X
109J4 10934 106*
10934
.......
__ 1U6X
10934 10934 106*
10SX
10934
10934 109* 106*
10634
10934 n o
10934 109J4 10634
11034
11034
10914
10934
11034
no*
109-4
10934
10634
307
10634
106?4
111
. . ..
I ll
iii
11034
111
11) X
11034
11034
COURSE OP CONSOLS AND AM ERICAN SECURITIES A T LONDON.
Date.
Cons u . s.
for 5-20s Ill.C. Erie
mon. ’62. sh’ s. shs.
Tuesday.............
Wednesday.......
Thursday..........
Friday..............
Saturday............
Monday ............
T uesday............
Wednesday........
Thursday..........
F r id a y ..............
Saturday ..........
Monday.............
Tuesday.............
Wednesday.......
9-25<
9234
9334
aax
9334
93 X
93 X
■9334
9354
93
9274
92*
92*
92*
.......17 92*
Friday................
92*-,
Saturday............ ____19 9254
Monday ......... ___ 21 92*
Tuesday.............
9274
8934
0934
89*
89 X
8934
89 X
89*4
89*4
89*4
89
88 X
83*
83*
87^
no*
11034
110X
lllx
11154
112X
no
113
112X
11236
m x
no
in
no
87 V 108*
87 io sk
8634 108
83 110X
85* i n
1854
1834
19
18
19
1874
1834
19
19
19
18*4
13*
18*1
18 "
17*
1734
1754
13
1834
Date.
Cons U.S.
for 5-20s Ill.C. Erie
mon. *62. sh’ s. sh’ s.
W ednesday...... ...23 9274
Thursday..........
93
Friday...............
92X
Saturday..............
9234
Monday...............
93
Tuesday..............
93
Wednesday.........
93?4
6774
8834
87*4
8734
88
8834
8354
no
110
no
no
11034
111X
m x
_ _
19
20X
20
2034
1974
2034
SOX
—
92* 8 6 * 108
17*
20*
113
1*1 2 * 5
3'
93*4 8854 U1X 20*
Lowest)
91?4 80* 99X 14X
Hieest
93X 91X1118
> a«
2234
The market for United Stitea Bonds has sympathized somewhat with th e
panicky condition o f the London and Frankfort markets connected with th e
Russian circular on the Black Sea question.
A t London, Sixty-T w os declined,
from 88£ to 86£, but at the close o f the month recovered the whole decline
A t home the raDge o f decline was
per cent, the difference between the
course o f prices on the tw o markets being adjusted by the variations in the gold
premium ; and, at the close, prices here were fully up to the best quotations of
the month. A m ong the better informed class o f investors, there appears to be a
grow ing conviction that whatever schemes o f funding may be presented by the
com ing session o f Congress by the Secretary o f the Treasurer or others, there is no
chance for anything being actually done in the way o f re-funding the six per
cent debt for some time to come ; and the price o f bonds being now compara
tively low and considerably below par in gold (the rate at which they will have
to be redeemed), there is a disposition among financial institutions and other
temporary investors to buy Governments at current prices ; and it appears to
have been making this demand which has sustained the market under the adverse
course o f securities at London end Frankfort.
The dealers, however, do not
seem disposed to speculate upon this tendency o f the market, but carry light
stocks and supply the wants o f their customers from current purchasers.
The
Treasury purchased during the month $4,000,000 o f Five-Tw enties.
The following table will show the opening, highest, lowest and closing prices
40S
COMMERCIAL CHRONICLE AND REVIEW.
[ December
■ >' ..II the railway und mi^celli.neous securities sold at the N ew Y o rk Stock
Kxehaiigfe during the months.of O ctober and November. 1870 :
,-------- -October.
--------November.Optyi. High. .L w. Clos. Open. High. Low.
55
i>5
50%
4
Bos o t. H a llo 'd & Erie........
...... 5
4
5«
8
4#
3#
Chicago & Alton
> . . . . ___
117
...» v.'.% :i-'X n i « 115# 116
tu x
d«>
do' pref................
119
119
1103a 114
117
U«X
do
do scrip.
*.. .
114
. .. lit
M3 h 114
151
. ... 131# 151« 151
m
l ’ 2b 151
. . . . sax
82
78
8>X 7>V 80% 79
S8% M44 87 6 88 V 88% 91X S’ #
do
do i>ref....... . . . .......
do
. . . . 116# m y . ItH
m ix 110% 174H 110%
Colamb.,Chic. & Ind. C..
in .
t -■% 19% 17
17.X
list
1»X
Clev i. & Pittsburg.........
107V 1 4
----- 107
105
o->x 108 >* 105
do Col.,Cin & Ind. .
8i
79% 81V M
81
80
8lX
D *1., Lack <&W estern..
... 104X 109# 10t# 1U9X 1«9 X lit # 109
L) ibnqiie Jb. Sioux citv’. ..
. ... o,o
mo
95
100
mo
100
101
Erie..................................
...... 23% 23 X 22
2
25
25# 2i
40
49% 45
4:)V’ 49 V 5IX
d»> preferred ...............
47 V
133
Har.em .. .
..
. . . . D B # 1*6
134
131
13IX 135
Hannibal & SI Joseph ..
106V 107% 1 o x MO# 103%
. . . . t u x 11
no
i.o pret.
.... 114
14V
111
1 5g m ix J2J
m x
16.
itrr‘ *ord & N. llavon ..
165
165
1.50
»b»
do sc ip ...
150
150
limioin C entral..............
138
. ... 138
135 ‘ 1 17
135
135
134X
..." g l - :ipd ...................
... (IT
67% 67 % 07 X 67%
«7X 67
1 >.* ill ^ & Mich. *o itu.
91
... 93
95#
9 V. 92#
92X 91X
I •• it <'•••''ip., 1st
20
19
19
8
do
do
2d .........
8
8
8
8
s
Michigan Central...........
120
m
12.i% 121
122# 120
120#
Milwaukee & St. Paul..
61
V
.... t a x
6
V
58 V
MX
M#
cox
82
<1.#
do pref..
81 % 82# 59 V * 0 *
79#
e"X
Morris & Essex...............
92
93
. . . . 89 K
MX
84% 92
91X
.. . 114% 11516 i U t 135% 114% 114# l!4-v
no
do
A n lral ... ..
106% 108 V 108% 109# P’S
93%
N Y Oen. As R .»■ enc..
91% 91%
91X
•• MX
94X 9i #
88% 86
87
do
c« rt:l i -»t.es ..
89 %
*0% s « x
. . . . 87x
. . . 1 to
1*4
do
As M. llav n .
157
in
154
157
155
143% 145
143%
. . . . 142
143
140
:«»
do --c ip.
143
Ohio & M ississippi___ .
M% 31% 32% 32% 8*K 31*
74
75
75
'
do
prei... .
75
74%
N< rwi a t \\ O.C stir.. .
104% 1"4
1(13
. .. :o ;
103
HWX 104
Panama.............
75
78
70%
. ... 85
*5% 72
71
Pitts., F. W. &Chi. gn.i
....... 93 V
93% 9JX 9-5%
93# 92% 9 i#
Reading ..........................
...
9 i# 101X 97% 100# tm x 10 !X 109 X
125
125
lto" e. W. & O ...............
125
....... 1*20
120
1.0
iso
St. Louis & Iron M oun...
47
47X 47
Sixth avenue .....................
. . . . 125
125
125
125
___
Stoa-icirton................ '.....
92
92
9i
....... 92
....... 52% 55# M X 52
52 X S4X 50X
Toledo, Wab. & Wextern .
75
74
74
d o.
do
do pi el ..
17
Union Pac'fic Rai.n ad.. .
...
2#
21# 2!X
■ax
27# 24
Miscellaneous—
American__ .. ..............
. ... 35
35
36
S7
Cnniherland Coal..............
£5
25
25
26
Consoli ated Coal............ .
. .. . 23#
25# ?6
Maryland oal C o.............
25
25
27
40
40
40
Spring M- unnin Coal.. ..
Del. <fe Hud. Canal.............
122
121X n s x 119# 120
120
25
A''antic M ai'.................
. . . . 25
25
25
40%
Pacific M ail........................
43% 41% 45X 42% 43
15
18%
Boston Water oivcr .
15
15
19X 17%
68
f'8
Canton................................ N
.... 67
69% 66
69
71
7
7
Brunswick City Land........
•-x
Mariposa...........................
....
4X
4X
4V
4X
7X
4#
4X
9
8
do
pref...... ..............
....... 10%
MX
sx
MX
#«
30
30
30
do
108 certil ..
35
35
34
34
5
5
Quicksi’ver.........................
5
5#
5X
.......
5X
5X
West. Union Telegraph ...
. . . . 31# 43,X 36% 39% 39X 43% 3 X
Express-43%
Anier.can M. Union..........
V .'A
43X 47
44X 42
67
68
Adams
............
67% 66% 67
64 V
33
IMV
33 X
United States......................
33
X
80
X
....... 3«#
37X
37
37
37
40% S7
Wells, Fargo & Co..............
3 'X
p
3
a
do
do -scrip___
2X
2X
XX
....
Wells. Fa'go, o :d ........
.. .
12#
12% t a x
12X
Railrctad Stocks—
Alt; &.Terre Haute p r e f.........
cb'S.
51)X
3%
116
lt7
152%
» X
9J#
11"%
is
llfSX
a x
110%
9^
2 1%
5»
1*2#
106%
115
’ 65
150
135#
67%
93%
2U
S
121
10
s ix
SIX
M’ X
108%
92}*
86% .
15
145
*1%
74%
104%
7S
9 X
101(4
125
47X
s ix
75
17
25
....
40
1*1
4: %
l'<x
68
sv
7¥
1UX
3o
5
42X
46
64 V
34 A
33%
2X
The stock raaiket has I ten irregular, opening at about late average prices’
yielding 2 @ 4 per cent, uuder the unsettled feeling created by the Anglo-Russian
1
400.
COMMERCIAL CHRONICLE AND REVIEW.
70!
co m p licatio n s,
w ith
aiv
and
advance
again
in
a d v a n c in g,
w ith in
n e g o t ia t io n s 1jo k in g to a co n -o i Iatio n of
C e n t r a 1, E
traffic.
w h ich
ie ,
New
Y ork
T h e effect
of
C -n trt1 and
these
m l v a n e e d »o 9 4 J
C en tro
am i
h iran
the
tax
c j o i n * t e n d a y s , in s y m p a t h y
on
the
to
through
on E r ie w in e *
u
r o a d s, a n d w ith
earn in gs on th e P e n n sy lv a n ia
L i k e S h o r e C o m p a n ie s on th eir th ro u g h
go m en ts
h * b * e u d e p r e s s e d '«y t h e fir
m ent of
the
fre ig h ‘ 8 a n d p a s s e n g e r r a t e s on th e T r u n k
w as
eo m in d
p i ct n t s t r i p
m ost a p p
from 2 2
of
rose
the
d ivid en d .
rent o n
to
L ik e
‘i f f .
G ove nm ept
'I h e
Shore,
N ew
Y ork
for th e p a y
follow in g
h a i e b 'e n
t h e ‘ i h e - t a n d lo w esv q ' o t a t i o n s on t h e l e a d i n g sh a r e s .:
The a o ll
i fin eries
I
f
T
b u t. fio 'ii
n m -ktt
above
been
f o i n e - v l i a t e x c i t e d in c o n n e c t i o n
to, the
ex trem es
of
q u o tatio n s
w ith th e fo reig n
h av in g be n 110 and
e lir-t i f f c t o l t iie I t u s s J a n c i r c u l a r w a s t o p a t u p t h e p t i c e s t o H i f ;
the
I r u b a ' il i if s
riow n o f th
1 11 f
lias
I'u d ed
Highi-st
93*
2 j*
102*
94%
114*
a t*
92*
108*
42*
43*
Lowes*
91
v2
100*
91*
no*
18
18*
105*
*0*
39*
New York Central and II. R.
E rie ......................................
«.ea inir
.............................
T/ike Sho e .........................
Roc < »slan ...........................
i u*.ag » an t Northwestern.
Milwaukee & >t. Paul.... .
1■evel i d & ittsbur.h.........
P c fic Mail.....
........
Western Union T d 'g r p h . ..
first, th e te
>I
wav a r iis p r s it io n
am o n g speeu aP rs
n j acific s tu atio n ol th e B la c k
b in p erm
o n t ' i- 3 " ili
the d i p l o m a t s
the
to
disco u n t the
S e a t r o u b l e s at.d u p o n a c o o l in g -
m arket
q u i c k ly r e a c t e d ,
d eclin in g
to
D u r i n g t h e fi s ' h a . f o f t h e m o n t h , t h e c o u p o n g o l d c a m e o u t
o f t h e T n a s m y vt i v s l o w l y , o w i n g t o t h e d t t t n t i o n o l t l i e CO '1 p o n s i . E u r o p e b y
'h e
w ar. a id
b i n 1- e r
ii' . ii t o t h e i r h e i i g h e ' d b
; s o ti a t g o l ‘ w a s l o m e i t a
ti e T r f i siiiy iu ’ ire -t p a y m e n t s .
r k , f r o m S| e i l l a t i v e m o t i v e s , b y f o r e i g i
lu ll l a t e s f o r s o m e t i m e afte< t h e b e g i n n i n g o f
T h e s a le s b y th e T r e a s u r y a n d its p a y m e n t s on
in c o u n t o ' u t i r r - t , t o g e t h e r w i t h t h e i m p o r t s
w i t h d r a w a l s f ohm h e m a r k e t b y c u s t o m
h eld
on
the
O c to b e r , the
2 iith , $ 1 > 2 l!(M '0 n
ca n
h a v in g
of
aiisen
o f s p i c e , h a v e a b o u t e q u a le d the
paym ents an d e x p o r ts;
sp ecie,
again st
S i d l' 0 ,0 0 0
buton
from re c e ip ts from C alifo rn ia an d
the
banks
the 2 9 th o f
from
other
c , t : e s a t w h i c h i h e in e i e s t o n t h e p u b l i c d e b t i s p a y a b l e .
' lie-day..
W.'dnesda;
Thursday .
J
Closing.
Date.'
High’ St.
COURSE OP GOLD AT NEW Y OK E.
1
| s
1 o
o
l i n t * u i% 111*1111* Wednesday............... 23:111ft 111 112* 111*
24j
Thursday...
Uoli lav.
. n t * n " « 111* i n
25[11 *2 jlll% 112 * 112
. 3,11(1* n o * 110*1110* Friday.......................25
20)111% 111% 112 111*
iin 110*1110* S-itnrday.......
---- 2S 11
Sir. r d a y .......................... o i l l u * 110 * no*’ il i* Monday........
HIM 11* l i t *
.. 29'lll% 111 111*1111*
M inday........
... 7.HOA# 110* no* no* Tuesday..
---- 3i-l ill
Tuesday.................... 8|l 0 * la* 110*1:1(1* Wednesday...
110% 111*1110*
Wednesday................ 9:110* n o * 110*|llO*
Thursday...................10 lid * l b i * 11(1* 110* Nov, 1870..................
113* 110*
1 S 0 9 ...............11233',' 121% 123* 122 *
n i d a y ....................... 11 110* n o * 1 I1*:11 1 *
Saturday. , .............. 1 2 llll* i n
1808................. |18i# 182 137 H o *
111 441111
1807
M.mday ................. 14jl!2* i n * 1 12 *| U t*
149% im % 141V 'SS
18(50........
T uesd.y.....................1 5, 'lll*
140%I13S% 148* 1 1 1 *
. . n o * !ll*|lll*
18(55........
Wednes-dry....... ..... Will l * 111* 112*1112*
145%,145% ' 4 8 * I<1*
1804 ....... . . . . 238^ 210 2r'0 230
Trursday..................n ltlS 111* 113* it 12*
F riday.................... 18 T !3 * lll2 * 113*1113
1803..
..---- |14« 1148
151 148*
Saturday.................. 19jll2* 112* 112* llW*
1802..
.. |U9ft 1*8 133* 120
Moi day.................... 21 111* 111* 111* H I *
Tin sd y ..................g l| n i* | lll* 112 111* |S’ce Jan 1,1870.
---- j L20M|110
123 * 11(1*
470
JOURNAL
OF
BANKINO,
CURRENCY, AND
FINANCE.
[D ecem b er,
F ore'gn exchange baa been irregular; but the predominant tendency has
been downward, the opening rate for prime bankers, 60 days sterling, bills being
109J, and the closing 1 0 8 f
Under the first flush o f the Russian question,
bankers were indifferent about drawing, and rates rose to 109J; but the accumu
lation of produce and cotton bills durirg that period helped the subsequent
decline.
COURSE OF FOREIGN EXCHAN GE (6 0 D A T S ) AT N EW YO R K .
London.
Paris.
cents for
centimes
Days.
54 pence.
for dollar.
1......................
....© ...
2......................
....&
.
3...................... .................@ U9X
... @ ...
4 ......................
5 ......................
V...............
& ...
....... ....... ltr.i @ au9%
8 ....
___
9 ......................
.. . @ . . .
10......................
■■■ & . . .
It ................... .........10!%@10!)«
&■■■
12......................
...
....10H31® ..
... & ..
1 5 ....................
... @ ...
16 ....................
17......................
. @ ...
1 3 ....................
... & . . . .
19......................
21......................
22.....................
21......................
.. . @ ...
... @ .. .
25...................
28......................
29
30....................
... @ ....
Amsterdam. Bremen.
cents for cents for
tlorin.
rix daler.
40 y*@tl
78X@7»
41 @41% 79X@79X
4 »X @ iiX 7o b, (or, %
40',@41
75)4@79
40)4 @41
7-J4@70
40%@ll
73% ©79
7S%@10
4'U»@tt
4i @11 x 79 @79 X
41 @ 4 ix 79 @ 79%
41 @11)4 74 @79%
41 @41% 79 @ 7«X
40); @41
79 @79)4
79 @79%
407*@4l
40%@41
41 @ 4 l)f 7S>.@79
41 @41)4 7SJ4@79
41 @11)6 78% @79
4 )4@4lX 79 @79)4
41X@ U X 79 @79%
41>4@nx 79 @79X
, . . . @ . . . . ... @ . . . .
41 ,X @ «X 79 @79 X'
41)4 @41)4 79 @19*4
41X@41X 7SJ4@79
41 @41)4 76), @78)4
40%-* 41
73>,@78%
Hamburg.
Berlin
cents for cents for
M. banco.
thalers.
36 @3 >% ■nx®Ti*
35 % ® ....
71* a ll
66 @ 3’.)4 71 \<&n%
36 @36)4 7 l * @ 7 l «
38 @36% tiM&ny.
36 @36)4 7lk&ny.
36 @36)4 71?<@7ii
36 @36% 71«@ 7 i
36 @ 6 % 71 Ji@72
36 f)>36)4 71«@72
36 @36)4
36 @36% 7!54@71%
36 @ 3'% 71)^©12
38 @36)4 71 @72X
36 @36% 72 @72),
36 @38% 72 @72X
36)4@36 X 72X@72%
36 @36)4 72 @72.X
36 @35% 72 @72X
... @ . . .
@ ...
36 @36)4 72 @72X
36 @36)4 73 @72X
36 @36)4 71X®71«
36 (in36% 7l*® 7 1 )i
35%@iB
71%@71>,
Nov., 1870....... . . .108%@1(I9.X
40%@41% 78% @79% 35%@36X 71«® 7«X
. M •
Nov., 1669...
518%@516% 40%@4U% 78% @79
7u\@71.?i
35%@36
JOURNAL OF BANKING, CURRENCY, AND FINANCE
Returns o f the New York, Philadelphia aod Boston Banks.
Below we give the returns o f the Banks o f the three cities since Jan. 1 :
NEW YO R K C IT Y BAN K R E T U R N S.
Date.
Jan. 8........
Jan. 15........
-•* n. 2 2 .......
Jan. 2 9 .......
Feb. 5 .......
*-eb. 12 ...
Feb. 19.........
Feb. 27 ...
Afar. 5 ........
Mar. 12........
Mar. 1 9 .......
Mar. 26........
Ap\ 2........
Air. 9 .____
Apr 16........
Apr. 23........
Ai r. 3 ■........
May 7. ...
May 14 . . . .
May 21........
May 28........
June 4 .........
J une 11........
Juue 18........
’ joan^.
253,475,45 1
259,101,105
259,592 756
260,324,271
164,514,119
26-1,864,652
267,327,368
268 455,642
68,654,*212
268.140,601
270,003,682
270,807,788
271,758,871
272,! 71,383
26'-*,981.721
269 016,279
269,50 4,2*5
275,246,471
278,383,314
280,261,077
279,550,743
279,4^5,734
276,419,576
276,6S9,0'J4
•pecie.
35.661,830
37,510,467
- 9,454,003
40,475,714
38,997,216
38,072 184
37,264,387
25,091,289
35,898,493
33,390.135
32,014,747
72.271.252
29,887,181
28,787,692
26,879,513
25,310,322
28,817.596
31,498,999
32,453,906
34,116,935
32,729,035
30,949 490
28,523,819
28,895,971
Circulation.
34,132,280
33,966,823
33,806 721
33,712,282
83,746.481
33,703,572
33,694,371
33,820,905
33,783 942
33,8:25,73 *
33,699,565
33,674,394
33.676564
33,754,453
33,698,258
33,616,928
33,506.393
.33,444,641
33,293,9^0
33,191,648
33,249,818
3 5,2*5,083
33.142,188
33 072,643
Deposits.
190,169,262
202.396,331
297,479,823
210,150,913
214,739 170
213,19 ',740
212.188.882
211,132,943
213,078.341
209,831,225
208,816.823
203,910,713
206,412,430
201.752,434
202,913,989
203,584,375
20-*,789,350
217,362,213
222,442,319
226,552,926
223,039,3*5
226,191,797
220,699,290
219,932,852
L. Tend’s Ag. Clear ga
48,537,735
593,170,114
52,248,475
596,733,681
54,619,433
5*0,665,911
56,732,168
519,133,555
58,318,384
541,240.204
56,603,000
610,842.824
55,1-,4.065
511,151,875
53,771,824
459,584.815
54,063,933
*04,182,507
53,3 2,034
548,015,727
52,774,420
525,079,551
62,6*5.063
481,253,035
50,011,793
516,05>,093
47,570,633
476,845,358
50,180,040
429,468.971
53,119,646
444,605,309
54,944,365
653.515,115
66,103,922
701,050,925
57.947,0.15
659,200,661
59,024,306
6,5 678,32)
61,618,676
576.625,521
61,290,310
513,452,668
6 >,159,170
57 4,132,050
58,120,211
4JS,S72,GS4
lb 7 0 ]
JOURNAL OF BANKING, CURRENCY, AND FINANCE.
Date.
June i f .........
July 2 ....
July 9.........
July 10.........
July 23.........
July 30.........
Aug. 6.........
Aug. 13.........
Aug 20.........
Aug. 29........
Sep. 3 .......
Sep. 10........
5ep. 17 . . . .
Sep. 24........
Sep. 30........
Oct. 8.........
Oct. 15........
Oct. 22.........
Oct. 29........
Nov. 5.........
Nov. 12 .......
Nov. 17........
Nov. 20.........
Dec. 3 . . .
Dec. 10........
loans.
277,0 >7,367
210,490,503
‘*77,783,427
2.^5,-17,318
180,090,798
281,939,843
18J,182.144
218,047,019
275,722,982
273,980,^74
271,914,145
271,7! 0,731
203,408.100
2n7.087,017
200.280,001
<04,981.S-9
<05,2r 5,790
205,005,390
205,979.485
203,293,9 0
200,170.366
204,009,210
204 008,146
200, 63,143
208,147,232
Specie.
Circul tion.
28,228,985
33,(94,113
31.011,330
33,070,305
35,734,434
33.100,357
41,135,03 8
82,027,780
34,258,012 : 2,9! 9,3: 7
£0,203,890
£3.005.5 3
20,472,592
32,943,144
24,104,302
£2.1(9.100
‘ 0,788,346
32,839,(67
19,059,: 84 82,904 S00
18,285,029 32,786,025
18,718,309 32,897,108
16,517,151 3 V,150.720
14,070,724 32.733,046
13,*<72,98l 32,718,199
12,597,641 32, f 93, *09
11.010,708 3*Y>7.7( 5
11,94 b 113 32,517,030
13, 08,400 32.420,54 9
14,899 140 32,374,511
17,1^4,489 32 389/ 08
17,586,2 5 52,801,22*
18,222,017
82,353,679
17,108,066
32.23 ',888
15,935,848
32.18.,477
Deposits
217.522.555
219,083.42b
219.125,466
234.832.555
233.906,513
2*<7,555.101
220,819,3(0
215,(74,494
2(5,581.318
20 >,900,100
290.091,553
1! 0,‘"52,430
193,459 910
191,0(6,202
191/65,574
387,701,117
187,489.715
339,678.983
193,077,798
184,709,710
190,6‘.0,937
194,80’.),406
4 J4,413,*.73
194 991,319
l!)4,18l/-.55
471
L. Ter.d’ s. Ag. c’ear’gs.
57,215,5**5
637,223,270
50,815.2(4
502,736,404
63,348,870
490,180,902
53,401,341
023,349,499
53,918,7 1
759,349,499
54.837,961
507,709 742
62,281,158
440,059,0-. 2
51,270,202
442,093,(^5
50.3(3/2.' 0
408,195,377
48,969. 13
4j 9,120,050
49,730,772
350 552,810
48,072,195
451.980,079
49,002,532
419 7b9,307
49,417,930
441,3!’9,855
51,034,(il 2
375,4: 4,1TO
50,275,220
455,69:\450
50,520,279
533, 47,810
52,39(»,812
521,298,874
53,009,099
259.398,843
53,999,251
(47,219,377
53,832,019
493/61,4*4
52,716,173
(37,'10.0 9
51,820 556
424,026,1<*7
51,257,050
491,713,941
49,124,022
513,593,493
PH ILADELPH IA BANK RETURNS.
Date.
Jan. 3 . . . . ............. ........
Jan. I d ___
........ .
Jan 17 . . . . .
Jan. 2 4 ___
Jan. 31 . . . . ......................
Fti*> 7 . . . . .................. .
Frtl-. 1; ..
F b. 21.. ..
Fei>.2S........ ......................
Mar. 7........ ......................
Mir. 14... . ........ .........
Mir 21.......
Mu-. 28.......
Apr 4.......
Apr. 11....... ......................
Apr. IS.......
A pr. 25.......
May 2........
Mav 9........
May 58. . ........................
May 23........ ......................
May 80.......
June 6.......
June 13.......
June -.0... .
June 27......
J u y i ...... ......................
July 11. . ,......................
July it. ...
...............
July S3.......
A ug. l ......
Aug 8 ___ ___ _____
Aug. 15 .
...................
Aug. 2 2 ....
Aug. 29.......
Sept. 5...... ......................
se. t. 12. ...
...i...
Sept 111 ... ..................
Sept. 27....... ............... '...
...
* ct. 3 .......
Oct. 10.......
net. 17..
..................
Oct. 24 .
Oct. 31 ...
N o/. 14
...............
Loans.
51,06-*,662
5!,1?2,570
51,709,658
51,828,(63
51,523,024
51,400,381
51,417,045
52, 41.533
52,234,603
52,500,343
55,1)37,866
54,607,170
54,294,723
53,712,364
63,399,190
52,088,428
52/3.1*8
51,67/473
51,362,551
51,297,626'
51,235,813 .
51,573.301
Nov. 28 ... ................... 51,066.814
> ec. 5.......
Dec. IK... . ..................... 61,835,653
Specie. Legal Tenders. Deposits. Circulation,
38,990,* 01
12,070,198
1,290,096
10,508,6b.}
1,358 919
12,992,812
38,877,139
1<‘,(> 6,' 2.
1,25/772
12,994,9-24
30,855,433
10.583, CO;
13,327,515
1,1 63,106
3:4,504,7UK
10.577,21 £
995,468
13,'52,5S7
39,53-‘,011
10,5 3,46,
957,5 0
13,74! ,807
39,512,149
10.568, 8*
1,01)0,955
13,319,610
£8,831/94
10, 7 1.3b'}
13,230.114
1,202.4’ 6
39, 55,165
10,-72,97J
1,313.173
13,400.018
89 279.85»
1(.’.508,1o5
1(1,576.85*
1,429,80 7
13.192,282
39,03) 042
1,677,218
32,704,279
39,382,352
10.565,90''
1.58 £72
13,125.058
89,781.163
10,57-, .8-5
13,0)4/29.5
1,599,517
39,781,153
10.586.61 J
12,769 911
1,5-10,747
1 1.57 . 7;1
38,771.237
1, 49 ‘,429
1 (,052.8*7
39,279,143
30.511.74“
13, *82,761
1,311,127
41,033,306
10,571,79*
1,003,741
34,827,013
)0,575,120
41,677,500
1,2)7,1-20
15,141,522
4*2,997,016
10,571,535
1/2*2,629
15,851,265
30,563,357
43,429,317
1,104,012
16,24 J,18 >
4i, 938.042
1 ,562 404
1,049,1)43
30,450,837
10,564,075
41233,010
9 ‘3,948
16,789,102
45,117,172
10,56 ’,378
869,597
16.92*i,082
45,122.7--0
10,561,684
841,50)
16,702/15
44,957,979
li ',567,358
743,2^5
10,399,319
44,398.340
1 ',51.9.851
728,844
I s,805,518
44,351,747
1<»,5».2,S'9
917.270
15.401,749
44,60 *,6 23
: 0,556, v77
14,595, 61
10 6-6,11,9
1,32',947
44.024.172
3/*.6:>,8‘ 0
43,337,846
14,22 ,9'0
1". 53,981
l),D:r,7 (!)
1,214,016
42,6 9,473
10,548,456
1, 62,567
13.472,641
43,943,360
10.563,291
1,064,3(8
33,119,170
41,178,651
10,562,197
781,537 . 1*,365.031
30,564.548
39,4)8.3.7
077,931
12,082.•OS
8,76 2,424
10 56*2.197
32,301,802
521,070
3/160,67 (
10.(69.755
12,305,142
511,211
38/(85 227
10,556,353
498,506
3T,46',82
12,116,503
10,5 9.441
394,106
11,195,99 <
37.224 US
10,561,788
11,802,374
340,981
.-7,1 6.636
10.57 ',6.v2
374,740
IK,41 ,7)11
37,641,3 5
1 , 90,480
12/*8 i, .71
352,043
10,591.459
36,808,407
325,817
31,908,806
36,880,916
10,905,792
292,881
IK,1K-,6116
36,682,169
10/01.112
361,464
12,468.670
37,174,350
19,656.175
6r6,S 9
37,100.589
12/ 77 910
10,755 669
r 90.221
n.si-,145
37.46S.011
l'»781,9n0
& 9,516 - 12,258.64!
3tt*S7,8 6
■10,768,211
800,7(5
12,698,298
38,6'2.809
0,314,500
575,59612,557,219
3.',906,743
liJ, .93,707
472
JOURNAL OF RANKING, CURRENCY, AND FINANCE.
[D ecem b er ,
BOSTON BAN K RETU RNS.
Loans.
Date.
Jan, 3 ...............
Jan. 1 0 .................
«/an. 1 7 ............... ......... 107,948,017.
Jan. 2 4 .......... . ..
Jan. 3 1 ................
Feb.* 7 ...............
Feb. 1 4 .................
Feb. 2 1 .................
Feb. 2 8 .......... .
Alar. 7 .................
Mar. 14.................
107.884,867
MafcStiK,i
,.. 107,043,309
Mar! 28.
A iY A .
:::: .. 106,722,659
106,156,094
Apr. 11..
. . 106,569,372
Apr. 28 .
... 106,012,527
May-^v.—' ............
106,949,531
. 106.840.256
May SO
. . rrrvT. 1'.7,097.074
June 6....... ................. 107,151,710
June 13......., .................. 106,901,486
June 20............................... 106,454,436
June 27............................ 1 6,416,' 87 106,839,304
July 4.............
July 11............ .............. 106,997,278
July IS............................ 107,817,458
July 25............................... 107.714,221
Aug. 1............................ 107,935,376
Aug. 8.................. ........ 10S,l:;8,26O
Aug. 15............................. 109,096,614
108,500,573
107.106.641
106,848,334
S ep t 5 ...
106,855,812
sept. 12...
106.697.567
Sept. 19...
106,711,217
Sept. 27..
1'16,537,446
Oct. 3 ...
106,769.932
Oct. 10...
106,804,122
Oct. 17...
10%lf 2,206
Oct. 24..
105.516.641
Oct. 31 ...
106,377,248
Nov. 7 ...
107.274.567
Nov. 14...
109,052,435
Ncv. 17...
108,924,361
Nov 28...
108,544,5u7
Dec. 5 ...
1(I8,S47,513
Dec. 12...,
Specie. Legal ^Tenders.
11,374 559
3,765,348
4,977,254
10,941,125.
5,418 001
10,794,881
5,542:674
10,962 102
5,231 785
6.0 5,00 >
10,433,107
4,884,147 '
9,386,‘.66
4,034.776
9,3S6,266
4,457,H3
8,918,129
4,929,867
8,7'5,874
5,024.691
8,510,573
5,170,700
8,352,-.61
5,19.', 348
8,499,444
5,163,494
8,470,455
5,057,341
8.162,080
4,851,954
8,276,721
4,536 881
8,872,670
4,551.70t
t0,081.601
4,792,'. 68
9,814,4i8
4,545,»90
9,584,703
4.0 8,741
9,684,054
3.875,717
9,721,708
3 475,523
9,776,281
3,534,313
9 560,009
3,397,873
9.1So,034
3,177,413
9,3:32,858
4,29-,219
8,816,494
5,494,539
7,897,0 6
8,362,919
5,411,903
4.541.322
9,958,724
4 439,5 3
8,883.528
8,331.499
4,019,987
3,564,721
7,933.0.-8
7 564,5Q2
3.153.323
v,864,348
8,385,215
2.026 331
9,383.916
9,053.013
2,40V. 22
2.324,671
9,848,686
2,182,143
10,314,803
2,' 40,227
10,2 0,727
10,121,683
1,856,214
10,918,675
1,56V.69
1,450.213
10 9-.9,81 >
11,584,606
1,569.452
2,044,662
10,557,Of 3
11,639,696
2,010,170
2,143.746
11,92 '.923
2,057,203
12,043,403
12 612,076
2,105,536
1,975-,550
12,5^7,922
Deposits. Circulation.
40 007,225
25,2b0,893
42,17 7,6 0
25.298J65
42,377:902
25,191,545
41,593,f 58
25.255,818
40.696,016
25,106,094
40,003.823
25,160,664
39,918,414
25.212,614
38,47s,853
24,230,866
37,088.842
25,225,629
37,681,983
55,260,868
37.708,082
25.1-80,027
37.093,583
25,270,487
37,123,211
25,265,(04
38.831,613
25,278.442
39,504.080
58,285,< 4)3
39,582,627
25,29:'.S05
39,920,142
2*,231.8/7
41,042,250
25,10^,619
41,205,597
2^,207,464
41,675,369
25.203,203
41,160,009
25,199,719
40,056,344
25,150,808
40.218,620
25,139,278
38 901.202
25,146,390
38,647,292
25,175,753
38 899,529
25,135,659
25,180,686
40,723.035
2 ,189,796
40,22 ',979
25,178,208
29,722,324
2',149,75 4
88, f 37,730
25,156,724
39,267 033
25,119,411
38,271,247
25,0.9,111
£6.972,701
25,150,653
3^,157,745
2-5,0S8,616
25,021,84*
36,470.515
36,3*:0,‘2(kS
25.037.943
36.688 104
24.995.959
37,185,312
21.995.959
33,23\578
21,934,154
24,954,016
40,998,^00
41.588,981
24,971.0°4
41.* 96 326
24.501.944
42.002,875
25.190,3:7
44.110.125
21,889,148
41.030,050
24,864,243
4 1,997,896
24,889,227
43,9<:0,7.''l
24,864.668
44,345.792
24,6 3,930
4 ,268,315
24.818,7.33
ERRATA.
In
the
article on the “ D istribu tion o f W e a lt h ,”
in the N ov em b er
num ber, on page 3 2 2 , for the w ord nor, in the fifth line from the bottom
o f the page read not.
O n page. 3 2 4 ,— 9th line from
phrase poor classes read poorer classes.
word bould read could.
read
the thing
is
O n page 3 2 9 , for “ p re ito , the K in g is changed,
changed.
figures,” read mass o f
the to p — for the
On page 3 2 8 for the m isspelt
O n page 3 3 0 for a “ mere map o f extra
xtra figure , and in the fifth line from the bottom
o f the page f o r tue working have been reduced, read hut the working
classes have been reduced, A c . O n page 331 in the Iqst line for equitable
distinction, read iq u i a i l e distribution.
f''
@FedFRASER