Full text of The Merchants' Magazine and Commercial Review : February 1865, Vol. LII, No. II

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

THE

MERCHANTS’ MAGAZINE
AND

COMMERCIAL REVIEW.
F E B R U A R Y , 1 86 5.

PETROLEUM.— ITS LOCATION AND PRODUCTION.
A t present engaged in the oil producing region o f Pennsylvania, the
undersigned cannot repress the ever uprising desire to explain, or to
attempt an explanation, o f the phenomena o f the oil and its production.
ROCKS IN W HICH IT ABOUNDS.

First the rocks in which it is found, and those in which it abounds,
claim a passing notice.
Everybody was surprised at the out-gushing o f oil from the rocky bosom
o f the earth, as much as were the weary and thirsty Hebrews, when the
smiting o f the Prophet’s magic wand brought water, pure and sweet, from
the desert granite. A t first there was a tendency to regard it in the same
category as the “ M oon H o a x " Its reality, however, was palpable. The
senses could testify, and even incredulity was compelled to believe. Then
arose the questions, “ if oil is found in one place, why not in any oth er?”
and “ i f in one place only, or under certain conditions only, then in what
place or under what conditions?” If in one place only it could be found,
then that was answered when the first well was found. N o other need be
looked for. Happily, however, the first astonishment over, venturesome
spirits were not wanting to repeat the experiment o f Mr. D rake ; and, in
a remarkably short period o f time, many neighbors began to bore. The
identity o f the oil thus obtained, with the oil obtained by distillation, o f
coal and inspissated bitumen, which had just at that time succeeded in
making a market for itself, brought the new product im mediately into
use, to the serious loss and great disgust o f the coal distillers. The de­
mand, however, was still exceedingly small, when the discovery o f a flow­
ing well o f great productiveness set enterprise and speculation all astir,
and the oil began to spout forth from the wounded earth in numberless
torrents. Demand was drowned in the deluge. The oil could not be
VOL. L i t — NO. I I .




6

90

P etroleu m : I ts Location and Production.

[February,

given away at the wells as fast as they poured it out. Small producing
pump-wells were abandoned by the thousand, insomuch that old derricks
rear their decaying heads all over Pennsylvania oildom, and bear mourn­
ful testimony to the ruined fortunes o f thousands o f early adventurers.
But to the rocks— what kinds o f rocks are they ? The rocks o f almost
every geological epoch above the primary igneous, produce petroleum
in quantities greater or less— more less than greater however. But the
rocks, pre-eminently oil-bearing, are immediately subjacent to the bitu­
minous coal-bearing rocks o f this region, although a remark o f an old
oil hunter, made in the hearing o f the writer, seems to be a realized fact.
Speaking in the earnest manner, com m on to the mere observer without
science, he said : “ W here the coal is, the ile aint.” Thus it seems to be
pretty generally agreed, that it is useless to bore through a coal bed for
oil. After all, this is, at present, mere empiricism. N o reason can be
given by any man why oil may not be reached through a bed o f
coal, as well as through the other overlying rocks. On nearly all these
hills subcarboniferous rocks abound, and the debris o f subcarboniferous
rocks forms the surface o f most o f the valleys as well. The basis o f the
hills are mostly identical with the Devonian sandstones and shales, repre­
sented in the New Y ork system by the Chemung and Portage group. A t
the base o f the subcarboniferous series lie the compact sand rocks, which,
in many parts, are coarse conglomerates.
In boring for a well, no man expects to find oil until he has reached
and passed through a whitish sand rock, lying at depths varying from
seventy-five to two hundred and seventy-five feet in the valleys. This is
called, by way o f distinction, the “ first sand rock,” although the borer
may have passed through a dozen different sand rocks alternating with
shales, before having reached the “ sand rock.” V ery generally, a well
stopped after having penetrated this rock, yields a heavy thick oil, con ­
sidered specially valuable for lubricating purposes, and commanding nearly
double the market value o f the light oils.
From one hundred to two hundred feet below this lies another, very
similar, and called the “ second sand rock.” H aving penetrated through
this, the borer is usually rewarded with another “ show o f oil.” This,
too, is a heavy oil, though not com m only so heavy as the former. From
this rock is produced nearly all the wells along the Alleghany River, while
the wells on French Creek are nearly all completed in the “ first sand rock.”
But, to reach the great oil fountains, the drill must make another plunge
o f from one hundred to two hundred feet, when a “ third sand rock ” is
reached. From beneath this rock out gushes the pure, limpid, light oil.
H ere, loo, are reached most, not all, the great “ flowing,” or rather spout­
ing w e lls ; some o f them having deluged the land at first, with three
thousand barrels per day— the “ Empire well,” for instance. The wells
o f Oil Creek are mostly in this rock.
Here, then, we have perforations through a series of sand rocks and
clay shales, until a certain sand rock is reached, under which lies the
greasy treasure. Let it be noticed that in all this descent into the bowels
o f the earth, no limestone is reached in this region o f country.
CAN WELLS BE OBTAINED FROM TOPS OS’ HILLS ?

Under the general impression that breaks in the hills indicate chasms




I 860.]

Petroleum,: I ts Location and Production.

91

in the rocks beneath, the valleys, gorges, dells, and even mountain rills
are seized upon by oil seekers as favorable locations for boring ; and the
omnipresent derrick climbs to the summits o f the ridges, by timidly
follow ing the channel or brink o f some little mountain torrents, instead
o f boldly mounting up the faces o f the hills. It is, undoubtedly, a g eo­
logical fact, that these valleys o f W estern Pennsylvania, never primarily
marked out at the period o f upheaval, by the flexures o f elevation caus­
ing anticlinal axes, or by the flexures o f depression causing synclinal ax es;
in both which cases a system of fissures would be produced ; in the former,
they would be superficial and open upwards, forming the primitive chan­
nels for the waters— now the rills, brooks, torrents, runs, creeks, rivers ;
in the latter, they would be deep and cavernous, and open downwards,
while the depression itself would form the water channel. Both these
forms o f valleys are seen here, and are usually plainly distinguishable, the
one from the oth er; while, in some cases, it becomes necessary to care­
fully observe the dip o f the rocks before a decision can be formed.
But what is the testimony o f the wells? D o they all speak one langu­
age— tell one tale? V erily n o ; though their reports, however various,
are susceptible o f classification, quite clear and intelligible. These re­
ports are o f two distinct classes, viz.: cavernous accumulations o f oil,
and shaly accumulations o f oil.
W hen the N oble well was bored, for seven long days and nights, down
rushed the waters, down rushed the oil, and dow n rushed the gases.
Probably Mr. N oble thought he had struck a short route to China or the
other place below ; and he might have been pardoned, if the thought o f
putting a telegraph wire down through to the Celestials began to suggest
itself to his excited mind, apparently disappointed in his dream o f wealth
from the flow o f the coveted grease. B ut lo 1 if he had been amazed
and chagrined during the first seven days, at the swallowing up o f all his
hopes in a fathomless abyss, he was no less astonished and delighted on
the eighth day when he saw the liquid wealth suddenly rise with a snort
and a splutter, and shoot up at the enormous rate o f two thousand five
hundred barrels per day. Other proofs o f caverns are abundant, espe­
cially o f caverns in the forms o f rifts and chasms. Intermitting wells
also show the fact o f caverns. For instance, one well flows a good stream,
gradually diminishes, ceases, and then gradually commences, increases,
reaches its maximum flow, and then, as before, gradually declines. The
periods in this case are eleven minutes flow, and fifteen minutes rest. On
the contrary, most wells, I think, give proofs o f being supplied with oil
from shales. The gradual manner in which it evidently reaches the tube,
shows that it results from percolation through some partially retaining
substance. That shales are there the borer knows ; for he brought up
their triturated debris, while reason also affirms “ it must be so.”
A s to the question o f choice o f ground, whether we shall take hill or
valley or ravine, we may evidently conclude that these three several “ sand
rocks ” will be reached at a less depth in a valley than on a hill. That
rifts and chasms would be more abundant near the axes o f flexure than
where these do not occur, is a very natural and safe conclusion ; but that
one o f the shale wells might be obtained from the top o f a hill seems
self-evident, by adding to the depth o f the boring the excess in altitude.
That no chasm or rift m ight be reached from the top o f a hill, is by no




P etroleu m : Its Location and Production.

92

[February,

means a tenable position. Indeed, proofs are not wanting; that chasms
or rifts do occasionally occur in hills and beneath them. The celebrated
bitumen vein in W est Virginia splits a hill from summit to base, and
crosses the valley at nearly right angles. A t the top o f the hill this rift
is two feet thick ; at the bottom and through the valley it is four feet ten
inches thick. Assum ing now, merely for the argument, that this same
rift were a thousand feet geocentrically lower, that the bitumen existed in
a liquid state, and that, in boring for oil, or other purpose, it is reached,
evidently our part o f the rift, i. e., the reservoir, would be equally effica­
cious with another, hill or no hill. If, however, this hypothetical rift
should make an angle with a vertical plane, in such manner as to place
some portions geocentrically higher than others, (a condition, the proba­
bilities o f which, against the supposition o f a perfectly concentric contour
and vertical position, are almost infinity against zero,) then perforations
at different altitudes will vary in productiveness. A low perforation will
give great hydrostatic pressure; and the flow will be correspondingly
great. I f a barrel filled with any liquid be tapped on the head in a dozen
different places, and at different distances from the top, that orifice will
discharge the most which lies the lowest, the preforations being equal.
A p riori, then, we may safely conclude that he who bores for oil from the
top o f a hill, though his chances for striking a chasm reservoir may be
somewhat diminished, may still very confidently proceed, assured that he
will find oil in shale, if not in rifts.
THE THREE SAND ROCKS.

W h at may be the character o f the three “ sand rocks,” in virtue o f
which they, and they alone, have becom e the conservitors o f oil, does not
yet appear. So far as known, all the surface drainage must have origi­
nated from these rocks, as in all the borings made these alone have
yielded oil,— still not these, but under these. Moreover, the reservoirs
under the three are evidently disconnected ; the oils differing in gravity,
the heaviest atop 1 when, by mixing the three in one vessel, they separate
according to the law regulating the separation o f liquids differing in specific
gravity. On the contrary, as might be expected, the reservoirs under the
same rock, give abundant proofs o f extensive connections. Thus new wells
frequently so tap the reservoir o f old ones near them, as to greatly effect
the quantity o f the product from the old. On Oil Creek, new borings
very generally pass through a deposit o f debris from the old borings ; and,
in some instances, remnants o f cable, and o f seed bags and seeds have
been brought up from a depth o f several hundred feet. Thus the p roof
o f connection is placed beyond hypothesis. It rests on facts.
DA ILY PRODUCTION OF OIL, AND THE AGGREGATE AMOUNT.

The quantity o f oil produced now does not materially differ from that
o f two years ago, viz., about six thousand barrels daily ; a little short
perhaps. From this fact some have leaped to the unwarrantable conclu­
sion, that the maximum capacity for daily production was then reached.
They argue that the number o f wells has been greatly increased, but the
quantity received is nearly constant. Therefore, m ore oil cannot be p r o ­
cured by increasing the number o f wells.




18 6 5 .]

Petroleum : Its Location and Production.

93

N ow we need but a moments reflection, and an appeal to a fact or two,
in order to expose the fallacy of such a conclusion. First, the number o f
producing wells now is not so much greater than two years ago, as would
at first sight appear. Old abandoned derricks, over wells which were
producing oil two years ago, are very abundant; all along Oil Creek for
miles, along French Creek for miles, and along the Alleghany River for
miles, these abandoned wells outnumber the wells producing oil to-day.
To the inquiry, wherever made, “ W h y are these wells id le?” but one
answer is given, v iz.: “ They were abandoned two years ago, many o f
them at the time o f their abandonment yielding thirty to forty barrels
per day. But cooperage could not be obtained, and oil was worthless.
The owners were obliged to leave them. Many o f the owners have since
gone into the army.” This tells half the tale. The other half is as fol­
lo w s : A ll great spouting and flowing wells act either from hydrostatic or
pneumatic pressure, or both. In either case the vent made by the well
gradually reduces the force, and the well as gradually declines in its p ro­
ductiveness. This is the universal history o f these wells. But it is a no
less noticeable fact, that fewer new wells are great spouters than formerly.
On the other hand, pumping wells, especially those of moderate produc­
tiveness, are very constant in their yield, scarcely diminishing their primary
quantity in years. I conclude, therefore, that the daily product might be
indefinitely increased. N ot so, however, may it be said o f the
Aggregate amount. That is fixed, is limited, under every view o f the
question o f origin. If the quantity is definite, as is that o f coal, iron ore,
gold, silver, and the like, then like them it is exhaustible, not only in special
localities but as a whole. If, on the other hand, it is a product o f con ­
stant evolution, generated deep in the earth’s secret laboratory, then is it
exhaustible whenever the draft exceeds the production, just as the annual
fruits o f the earth are exhaustible whenever consumption exceeds pro­
duction. Neither will it avail here to assume that its production exceeds
any assignable amount o f consumption. In that event, its accumulation
in past ages would, or at least should, have overflowed its rocky reservoirs,
and caused an inundation o f oil, long geologic eras since. It is a very
favorite and fashionable expression with the world, and even with many
acute writers on scientific subjects, to say o f this or o f that mineral, “ It
is absolutely inexhaustible !” Thus they say o f iron, o f coal, o f the fertility
of some soils, etc., e t c .; and thus many say and affect to believe o f oil.
Still it requires no great engineering acumen to demonstrate not only the
contrary, but even to show how many years any given mineral, as coal,
will last any specified country , as England f o r instance. True, we do not
yet know how large a portion of the earth’s surface rocks is oil-bearing.
For myself, I am persuaded that it will eventually be found about as ex­
tensive as coal in territory. Discovery, thus far, seems to cling to the
skirts o f bituminous coal regions. It may prove that the oil regions and
the bituminous coal regions will be found everwhere conterminous. W ith
the present light we have, I do not think geologists would commit a very
great blunder should they encourage enterprise to seek for it in all such
localities, and stand non-committal with respect to other localities. Still,
wherever we have the bituminous coal resting on other strata than the
upper Devonian, I confess to some doubts, and I would be slow to com ­
mit myself beforehand. The very marked feature of the three “ sand




94

Petroleum : I ts Location and Production.

[February,

rocks,” and the fact that they alone, in this region, are oil-bearing, cannot
but make one hesitate. Y et it is difficult to maintain entire silence, for
men are everywhere eager to know what their prospects o f success may
b e ; and they appeal to the geologist not so much for an honest counsel
as for a confirmation o f their hopes. That geologist w ho frankly says
“ I do not know,” is set down as very verdant, yet he only is safe. The
excitement o f speculation is so great, that the rocky bosom o f mother
earth will undoubtedly be put to the test in many a region now little
thought of, whether the geologist speaks or n o t; and, as the first discovery
was made without his knowledge or consent, so is it quite likely to precede
him in extending the development o f the greasy area. W h ile science
pauses to ponder, to systematize, to classify, and to rationate, speculative
enterprise, eager for the golden harvest, plunges into blind search, strikes
out right and left, and is very sure to hit in the right spot sometimes.
Science will follow at her slow measured tread, and only corroborate and
substantiate the discoveries o f the adventurer. This will prove so at least
until facts have fertilized the waiting womb o f science. Then will she
bring forth an illustrious progeny, out o f this, as out o f other great sub­
jects in natural history.
ORIGIN OF MINERAL OIL.

Absolute certainty on this subject, as on many other kindred subjects,
may never be reached. Speculation respecting the origin may be, as yet,
entirely premature. Still, as the world is full o f guesses, and as conceit
is frequently enrobed in the garb o f unquestionable principle, it may not
be amiss to estimate the value o f one or two theories respecting this most
recondite subject. Recently, an article appeared in the D a ily Press, with­
out the authority o f a name and without comment o f the editor, kn such
case, the editor must, o f course, be held responsible. This was very brief,
but the theory' was explicit so far as it went. It assumed that oil, as it
com es from the pierced bosom o f the earth, is the offspring o f water and
carbonate o f lime, mutually decomposed. The words are, “ The water
descends through the rocky strata, dissolving as it goes, and carrying with
it various acids and alkalies ; and, on reaching some limestone bed, de­
composition takes place, and the elements unite to form different com ­
pounds, among which the carbon o f the limestone and the hydrogen of
the water unite to form oil. Therefore, the supply is inexhaustible as the
ocean 1” I have not quoted verbatum, but nearly so. The sense, I think,
is accurate. It is not an agreeable work to strike an unknown person.
B ut we may hit this theory a blow or two in order to see whether it is
merely a hollow shell, or vapid air, or solid substance. First, it lacks
completeness. It does not tell us what re-agents are dissolved before­
hand in the water, sufficiently effective to cause decomposition. W ater,
roost assuredly, will not. If the carbonate o f lime were the carbide o f
calcium, or carbide o f lime, (com pounds never found in nature,) then
would this theory stand on a very fair foundation. But not now. Again,
had the re-agent been named, we might, perhaps, comprehend the opera­
tion ; but, as it is not named, we grasp at solidity and catch air. I f we
suppose an acid re-agent, what shall it be? W ill we suppose it to be
nitric acid, a small amount o f which is produced in thunder showers ?
It is combined with the free ammonia forming nitrate o f ammonia. Sup­




1 8 6 5 .]

P etroleu m : Its Location and Production.

95

pose this substance and carbonate o f lime to be brought together in the
solution and decomposition effected under the laws o f affinity, what do
we get ? Surely not oil at a ll; but nitrate o f lime and carbonate o f
ammonia instead. So of any other salt, the elements o f which may m u­
tually interchange with carbonate o f lime. But suppose the water carry
down free acid capable o f decom posing carbonate o f lime. W e now get
free carbonic acid, not o i l ; and, if we can contrive to hypothecise the d e ­
composition o f the water so as to liberate the hydrogen, we still have the
carbonic acid from the limestone, not carbon. It is really a very difficult
affair to make even so clever a guess as this work. But, suppose for argu­
ment sake, we admit that this is really the origin o f petroleum, and jum p
the tnodits operandi— W hat follows ? W h at else but this, viz., carbonate
o f limestone everywhere should be doing the very same thing ? All lim e­
stone countries should be greasy coun tries; and the more the limestone,
the more the grease! Limestone regions, with one accord, cry out indig­
nantly against the imputation. Finally, it must have been so from the
fir s t; and it is difficult to conceive how carbonate o f lime has been able
to maintain its existence through such vast cycles o f ages, as must have
intervened since it was first born o f the elements and baptised in water.
Second, the theory that oil is a result o f pressure upon coal is main­
tained by some respectable geologists. In other words, that, as whey is
expressed from a cheese curd, or oil from the olive, so is petroleum ex­
pressed from the coal beds. This theory supposes coal to have originated
from vegetable substances, by a process identical with that operating in
the formation o f peat and lig n ite; that a peat bed requires only submer­
gence and burial beneath a mass o f rocks, and the elevation o f tempera­
ture consequent upon increased depth, to convert it into coal. During
this process o f conversion a slow but sure destructive distillation is quietly
at work upon the vegetable substance, converting it into the various h y­
drocarbons. (They are not carbides o f hydrogen, as are the two gaseous
compounds, C H and C 2H, although the former o f these is an abundant
product o f vegetable decomposition.) The temperature requisite for o b ­
taining oil must have been reached, maintained sufficiently long to reach
the result, and subsided before the coal was reduced to coke. Under the
enormous pressure and in compressed water, that coke, if reached in the
process, may have very materially differed from anything in that line hu­
man art can ever hope to attain, how different from anthricitecoal I leave
for others to declare. A t all events, we can easily perceive that, if this
were really the manner in which the oil was originally produced, a tem­
perature would not be difficult to assign which would coke any supposable
bed o f the primitive coal. Moreover, if the heat did certainly exist in
sufficient intensity, it is difficult to see how, under the circumstances o f
pressure and absence o f free oxygen, anything else should transpire than
the evolution o f the hydrocarbons; and, if continued, o f the coke, by
means o f superheated water and incalculable pressure. Nevertheless, the
theory o f the formation o f anthricite coal from bituminous, through the
agency o f heat and pressure, is universally conceded by all whose opinions
bear much weight on scientific subjects. But, says the skeptical querist,
if this be so, why do we not find oil in the anthricite regions? To this
m y answers are, first, we have but now found it near the bituminous coal,
aud that, too, without scientific forecast, but rather by a blind inquisition,




96

Petroleum : Its Location and Production.

[February,

groping after a little, a very little “ Seneca oil,” as one o f life’s panaceas,
propounded by quacks and believed in by ignorance and disease, Secondly,
a priori, one would say, that, under the high temperature attained in p ro­
ducing anthricite, the oil would becom e volatilized and sent into the
“ upper air,” there either to ignite and suffer the consequent decom posi­
tion, or to be condensed and to float away on the bosom o f the primeval
ocean ; to be driven hither and thither by the turbulent storms, until, find­
ing quiet in some isolated lagoon or land-locked bay, it m ight ultimately
becom e some bituminous lake o f Trinidad— be buried again to be ex­
humed in the long after eras, as the Albert coal o f New Brunswick, or as
solidified bitumen amid the mountain rifts o f Virginia and N orth Carolina,
W h o will say nay ?
The temperature around bituminous coal regions not having attained
sufficient intensity to produce coking, nor to volatilize the oil, this latter
remains in its liquid state to follow the water with which it was associa­
ted, sinking as the water sank and rising as the water rose, maintaining
its hydrostatic relation o f levity, as compared with the greater gravity of
its saline associate— salt water.
The fact that the lightest oil is found beneath the “ third sand Tock,”
may have reference to the order o f distillation, or it may be the sign o f
a redistillation o f the lo w e st; for it is a known fact, ascertained in the
refineries, that the heavy oils may all become converted into light oils by
properly managing the distilling process. Thus has God, in his own
matchless laboratory, anticipated human research and attainment.
I scarcely need add, that to this theory for explaining the origin o f that
wondrous product o f nature’s chemistry, this more than Alladin’s lamp,
to many a formerly poor peasant, but a now wealthy Croesus, I can dis­
cover no very serious objection. It seems perfectly to meet all tho require­
ments o f a well grounded hypothesis which will endure the severest tests.
It seems to render intelligible the mysterious characters “ done in oil,” and
to bring forth a true interpretation o f the mystic symbols traced in
nature’s own book, and stored away amid the rocky archives o f the geologic
eras <f the mysterious past.
'there is one other theory which deserves a notice, though I by no means
propose to discuss it in full, neither to refute it, nor to show its plausibili­
ties. It is the only really rival theory to the one last above given.
That theory begins where the other leaves off. It supposes oil to be
one o f the primitive compounds, in the same manner as water and all the
ordinary solids and carbonic acid gas, instead o f being a secondary,
belonging to the same category as ether, alcohol, chloroform, etc., the re­
sult o f derivative chemical forces. It says the hydrocarbons were first.
B y exposure to air and moderate temperature, etc., they became inspissated
and are asphaltum, bitumen, and finally coal. It says “ all the impressions
found in coal are the mere accidents o f their day— organic substances
embalmed in nature’s cerements.” Their strong arguments consist in call­
ing for the potash o f the plants supposed by the opposite theory to have
originally constituted the coal beds, in citing the chemical identity o f oil,
asphaltum, and bitumen, and in appealing to the existence o f these in
separate beds, deposits, and reservoirs.
I do not deny the force o f all this ; but I do conceive that the theory
o f organic distillation by heat, and under immense pressure, and with




18 6 5 .]

National Savings and National Taxation.

97

permeating water, is more in exact consonance with what we know from
experim ent; and that it meets ail the reasonable demands upon it as a
primary hypothesis. True, every hypothesis should be tried by the seve­
rest tests before it is catalogued as a fundamental principle. And no mat­
ter what hypothesis one puts forth, only so be he is willing it shall be
subjected to the *' experimentum crucii.”
I r a T axlk r .

NATIONAL SAVINGS AND NATIONAL TAXATION.
(Number II.)
TIIE INCOME TAX AND ITS RESULTS.

W e have already referred to the difficulty there is in attempting to reach
any accurate conclusion respecting the national incom e. In our last
article, however, we showed what must have been the annual accumula­
tions during the past ten years, if the census returns are sufficiently accu­
rate to form a basis for the estimate. Taking the assessed valuation o f
all the property, real and personal, in the United States, in 1850 and 1860,
(that is taking an account o f stock at each o f those periods,) we stated
that the increase thus exhibited must be the savings o f the country dur­
ing that period, with certain exceptions. A m ong those exceptions we
mentioned the increased valuation o f real estate, which is mostly nominal.
It does not represent accumulations, except to the extent o f the improve­
ments in the way o f houses, fences, e t c .; and, as we then said, it makes
no difference whether Western farm lands are assessed at their actual cost,
$1 25 per acre, or at their assessed value, $100 per acre, the real value,
which is the profit the farmer gets after supplying his family, is in each
case the same. It is only out o f that net incom e that he can pay taxes,
whether his farm is assessed at $1 25 or $100 per acre.
So, too, in regard to the valuation o f personal property, we showed that
there were many inaccuracies. Much o f it is assessed two or more times.
For instance, take the valuation o f savings and other banks, and we find
the capital o f the bank is first assessed, then the deposits, and, again, all
that the capital and deposits are invested in— such as real estate, United
States bonds, the stocks o f goods, etc., merchants and others are able to
purchase by means o f the loans thus obtained, etc. Hence, therefore, two
things it appears to us are evident. First, that the increase in valuation
o f real estate is not, except to a small extent, accum ulations; and second,
that the personal valuations are in many cases repeated, and therefore ex­
cessive. Balancing, then, this excess in the valuation o f personal property
against that portion o f the real estate which may be considered savings,
and we reached the conclusion that the increase in personal property
might be taken as the amount o f the savings. W e claim, o f course, no
refined accuracy in this estimate, all we expect is an approximation. But
that is sufficient for our purposes; for if we can convince our readers o f
the necessity there is for econom y, both national and individual, we shall
have accomplished a decidedly g ood result.




98

National Savings and National Taxation.

[February,

Y et, although an estimate made, as indicated above, could o f course lay
no claim to refined accuracy, still we now have, in the returns o f the C om ­
missioner o f Internal Revenue, corroborative evidence that the conclusions
reached cannot be far out o f the way. The census returns give the per­
sonal estate in 1850 at $2,029,050,213, and in 1860 at $5,111,553,956;
showing an increase o f $3,082,503,743 in ten years, or an average annual
increase in the savings o f the country o f about $308,000,000 a year, and
this we gave in our previous article as the probable net incom e o f the
United States each year front 1850 to 1860. Turning now to the returns
o f the incom e tax we reach similar results. The amount collected on the
incom e tax for the year ending 1863 was $23,556,084, and this tax being
three per cent, the sums thus collected represents a gross incom e o f
$7S5,136,133, w hich amount, therefore, is thus shown to be the total gross
incom e o f the United States in 1863 over and above the $600 exempted.
It will be remembered that in our last article we showed the result o f this
same tax in England, and the conclusions reached then compare with the
above figures as follow s:

Great Britain.......................
United States.....................

All incomes
over

Gross incomes.

Hate o f
tax, per ct.

Proceeds.

$484
600

$1,471,521,685
785,136,133

3£
3

$55,240,740
23,556,084

Thus the incom e tax gave very nearly half as much here as in EnglandIt is to be borne in mind, however, that the English tax was levied in the
year 1 8 6 1 -6 2 , when general business becam e very dull because o f the
outbreak o f the war in this country, many o f those channels o f profit
which we pointed out in our last article being under depression. On the
other hand, business in the United States was very active and prosperous
during the year 1863, under the influence o f large Government expendi­
tures, and of the progressive issue o f paper money, which resulted in a
continuous rise in prices o f all commodities during the year, causing old
and dead stocks o f goods to command unexpected profits, which were
calculated in paper money and not in the specie medium of the previous year.
Thus, as all know, the paper incom e o f the year was very largely in­
creased, and yielded a much larger amount o f tax than could otherwise
have been looked for. Still it should be remembered, on the other hand,
that incomes are in many cases understated and never overstated, so that
the aggregate returned must be somewhat less than the actual. W e can­
not, of course, know the extent to which this tax is affected by either o f
these causes, nor shall we attempt it. T o continue, howeuer, our com ­
parison with the returns o f Great Britain, it is necessary to reduce the
paper incom e to its specie equivalent, which is (taking the average price o f
g old in 1863) $523,424,089. The fact will then remain that, payable in
the same currency, the incom e o f the Northern States is rather more than
one-third that o f Great Britain. Refering now to our last article, we find
that out o f an incom e o f $1,471,521,685 per annum in Great Britain, the
net surplus (page 434, vol. 51) was placed at $570,000,000, or about forty
per cent o f the gross income. A t the same rate the net surplus o f those
States paying this tax would be $209,369,602 per annum. The estimate
o f savings made in our former article, as stated above, was $308,000,000
fu r the whole country, giving about the same result now obtained.




National Savinas and National Taxation.

99

Thus it appears that the annual net incom e o f the whole United
States is about three hundred, or certainly cannot exceed four hundred
millions o f dollars. This represents the total annual net surplus, which
heretofore has been applicable to the following purposes:
1. Purchases and improvement of land, drainage, machines, buildings,
etc., necessary to production.
2. Construction and improvement o f dwellings.
3. Construction and improvement o f factories, workshops, tools, motive
power, etc.
4. Creation o f public works, railroads, docks, bridges, telegraphs, roads,
churches, hospitals, colleges, asylums, and water-works.
5. Trading capital, stocks of goods, ships, etc.
6. Investments in public stocks, insurance, gas, etc.
7. National taxation.
The increase o f business and population demands a considerable appli­
cation o f capital every year to each o f the above six purposes, so that all
o f the net surplus clearly cannot hereafter be applied to the payment o f
taxes. I f it were so applied, the further development o f the wealth o f
the country would be impossible. The rapid increase in wealth o f the
United States hitherto, has been owing, in great part, to the fact that the
surplus earnings in almost all business have been applied to extending,
improving, facilitating, and therefore cheapening production, while the
means o f individuals have been free to purchase those productions, thus
giving a new stjmulous thereto. Should the Government now be com ­
pelled to step in and absorb the whole o f that portion o f this revenue,
which has hitherto been applied to facilitating production, one can easily
see what the result would be.
W e must here remind our readers again that there is no fund out of
which taxes can be paid except this net incom e. The popular boast about
our inexhaustible resources is really nothing more nor less than silly and
w icked; silly, because even a thinking child knows better; and wicked,
because it leads to extravagance and carelessness. The resources o f the
nation are measured by its income. W e , as individuals, can pay no more
in taxes than we have net income. To point to our gold mines and say
there is the means to pay our debt, is no more foolish than to tell the
farmer to pay his interest due this year out o f crops not yet even put into
the ground. The soil and the mines are rich enough, but the gold and
the crops must be produced before they can be spent. A s we stated on
a previous occasion, this same gold and fertility o f soil were there when
the continental dollar was valueless, and ever since that time we have been
producing both gold and crops as fast as we could with the capital and
labor we possessed. It is to the annual production alone we can look as
a resource, and we can increase that only by the application o f more
capital and labor. If, therefore, all the surplus earnings are to be applied
to taxes, it is clear that the production neither o f our mines nor our
farms can be increased.
B u t we will not dwell longer on this point, as we have discussed it at
length in previous numbers.* Besides, it is self-evident that the only fund
we can look to for payment o f our taxes is our income. By econom y on the




* Merchant’8 Magazine for 1864.

The Law o f Bankruptcy and Insolvency.

100

[February,

part of the people, however, the net savings can to a certain extent be
increased. It should be remembered, also, that the income estimate we
have made, does not include any under $600. Of course such small in­
comes, as a general rule, yield no surplus— the full amount being required
for consuption. And yet they indirectly pay taxes, and are able to do it
by the exercise of greater economy ; thus adding to our tax paying abili­
ties. This process of saving, however, of necessity discourages business
and production, and if carried to too great an extent, the whole system
of production and interchange is thus put under pressure, which soon
must undermine the incomes and diminish the surplus.
W e have thrown together these lew ideas, for the purpose of showing
the earnestness o f the financial question before the people at the present
time. If its importance were only appreciated there would be far less
danger in the future. W e have no doubt of the ability of the country to
finish this war successfully, and to pay the expense of it; but yet it is
evident from what we have said that we have no money to waste— that
the future growth o f the nation depends upon the financial policy pursued
now. The hearts of all are full of hope, joy, and thankfulness, on account
of the successes obtained in the field; only this one threatening cloud
remains. It can be robbed of much of its damaging power by care and
wisdom. But if we choose to flatter ourselves with the idea o f our wealth,
to blind our eyes with false notions of our resources, and act accordingly,
the extent of our future suffering must be greatly aggravated. Remember
that not one cent o f the expenses o f this war has yet been paid ; we have
carried it on by simply issuing our promises to pay, so that the war has
not proved our resources financially, but only our faith in our Govern­
ment. The taxes collected have paid nothing because the additional issue
o f currency has neutralized them, by increasing the expenses each year
to more than the amount thus collected. And remember, too, that when
we begin to pay, we can spend no more than our net income, and that
every cent required for taxes is so much taken from production.

W e shail hope hereafter to indicate som e o f the changes w hich should
be m ade to increase revenue and decrease expenses.

COMMERCIAL

LAW-NO.

18.

BANKRUPTCY AND INSOLVENCY.
THE HISTORY OF THE LAW OF BANKRUPTCY.
C e n t u r i e s ago, dealers in money, or “ exchangers,” as they were called
in England, sat behind a bench, on which lay heaps of the coin they
bought or sold; and some remains of this practice may now be seen in
various parts o f the old continent. This bench, or “ banco,” in the Italian
language, gave its name to the moneyed institutions of deposit, or o f cur­
rency, of which the earliest of great importance, if not the first in time,
was the “ B ank” of Venice. When such a trader became insolvent, or
unable to meet his engagements, those who had charge of such things,




18 05 .]

The Law o f Bankruptcy and Insolvency.

101

whether as a police or as an association or guild o f such dealers, broke
his bench to pieces, as a symbol that he could carry on that business no
longer. In Italian, the words “ banco rotto ” mean a broken bench; and
from this phrase antiquarians suppose that the word “ bankrupt ” grew.
In this we see nothing of alleged criminality, or o f punishment. But
the laws of England went to an earlier source than the Italian commerce
of the Middle Ages, and found in the Roman law the principle which
governed, and perhaps still governs, their system of bankrupt laws. This
principle is, that the bankrupt may be presumed to be dishonest and cri­
minal, and treated accordingly.
B y the original English com m on law, the body o f a freeman could not
be arrested for debt, whether he was a trader or not. And the earliest
processes o f that law included none for imprisonment for debt. This was
o f later origin. In the reign o f Edward I. a law was passed authorizing
an arrest o f a defendant in certain cases, for the purpose o f more effectu­
ally securing the performance o f commercial contracts. This was exten­
ded in its operation by a law o f Edward III., and sundry statutes followed,
applying further regulations to this subject, until late in the reign o f
Henry V III. (15 44 ) a statute was passed so nearly resembling a modern
statute o f bankruptcy, that it is generally considered the first bankrupt
law. In a statute o f the 13th year o f Queen Elizabeth, the operation of
the law was confined to traders; or, in the words o f the law, “ to such
persons as had used the trade o f merchandise in gross or in retail.” A nd
thus an important principle was introduced, which has since been adhered
to, although somewhat liberally construed.

In those, and in still earlier days, there was perhaps more reason for
regarding a mercantile bankrupt as a criminal than there is now. Even
at present, many insolvencies are undoubtedly fraudulent, and the inno­
cent bankrupt generally, if not always, owes his failure to guilty intent or
guilty improvidence in some quarter. But it is also certain, that, in the
vast complications of the commercial world, all who engage in business
are subject to casualties, which imply no crime, and which no sagacity
could avert. By the Roman law, the merchant who failed in business
was expelled from the college (or guild) of merchants, and never suffered
to trade again ; if that law prevailed here, many of our most eminent and
useful merchants would have lost the opportunity o f retrieving their affairs
by ultimate success, and paying off, by the fruits o f a later industry, the
debts of an early insolvency.
The community are now sensible o f this. And to this conviction we
owe the gradual, but of late years rapid, change in the spirit o f our laws
for the collection of debt. Now the endeavor is made to discriminate
carefully between an innocent and a wrongful insolvency; and to treat the
latter only as criminal. That our laws do not yet effect this purpose per­
fectly, and without any injurious result, may be true; but the purpose
and the principle are certainly right.
The Constitution o f the United States authorizes Congress to pass a
bankrupt law. But not until eleven years after the adoption o f the Con­
stitution was a bankrupt law passed, in 1800, which, by its own terms,
was limited to five years, but was in fact repealed after it had been in
operation two years and eight months. Sundry attempts were made from
time to time for a new o n e ; aud whenever the vicissitudes o f trade press­




The Law o f Bankruptcy and Insolvency.

102

[February,

ed more heavily than usual on the community, these efforts were more
urgent. And to the general decay o f trade in the country, or rather the
wide prevalence o f actual insolvency, was due the law which was passed
in 1841, after an earnest but unsuccessful endeavor in the year previous.
I f the amount or number o f applications for the law is a true measure
o f its need or its utility, this law was not passed too soon. In Massachu­
setts, for example, there were 3,389 applicants for relief, and the creditors
numbered 99,619, more than a third o f the adult male population o f the
State, and the amount o f their claims exceeded thirty millions o f dollars,
averaging about three hundred and fifty dollars to a creditor.
This law was repealed March 3, 1843, one year six months and fourteen
days after it was enacted; and in this short period it affected more pro­
perty, and gave rise to more numerous and more difficult questions, than
any other law has ever done, in the same period. It was repealed because
it had done its work. The people demanded it, that it might settle claims
and remove encumbrances and liens and sweep away an indebtedness that
lay as an intolerable burden on the community. W hen it had done this,
it began, or was thought to have begun, to favor the payment o f debt by
insolvency too much, and the people demanded its repeal.
W e have no national bankrupt law now. The present Congress may
pass o n e: yet the State insolvent laws are now so well constructed and
systematized, that they effect, though not quite so well, nearly all the
purposes o f a national law.
But these State laws are entirely independent o f each oth er; and their
provisions are so different, that it is difficult, or indeed impossible, to pre­
sent a view o f the bankrupt law o f the United States which can have the
unity and system o f such a view o f the laws o f any nation, in which these
laws are made by one legislature for the whole, people, as in England, for
example. But there is enough o f system and o f similarity, and enough of
principle running through the whole, to make it expedient to endeavor to
present a general view o f the generally admitted principles, without
attempting to exhibit merely local details and peculiarities. Should a
national law be passedr-it would undoubtedly embody these same general
principles.
THE DIFFERENCE BETWEEN

BANKRUPTCY AND INSOLVENCY.

This difference was not perhaps perfectly clear in its beginning, and has
gradually grown dim with time, until now, in this country at least, it has
becom e almost obliterated. But from it arose, and upon it, in some mea­
sure, depends, our present American law o f insolvency.
The earliest difference between these was, that bankrupt laws applied
only to those “ who used the trade o f merchandise,” while insolvent laws
applied not only to traders, but to all who were indebted and unable to
pay their debts. The more prominent distinction, however, was this, that
the process under the bankrupt law was against the will o f the bankrupt,
by his creditors, in order to obtain a sequestration o f his effects, (by
sequestration is meant the taking them out o f his possession and control,)
and prevent a further waste or fraudulent or unequal misapplication of
them, and secure the payment o f their debts as far as these effects would
go. But the insolvent laws were intended for the relief o f debtors who
sought to be protected, by the delivery o f all their property, from further




18 0 5 .]

The Law o f Bankruptcy and Insolvency.

103

molestation. This distinction is now so far lost sight of, that the last
national bankrupt law, and most of the State insolvent laws, provide
separately for a process against a party, and also for one on the applica­
tion and request of the insolvent himself. It has also been supposed that
another ground of distinction lay in the fact, that the bankrupt law dis­
charged the debt, while the insolvent law left the debt in full force, but
protected the debtor himself from arrest or imprisonment. But this dis­
tinction has also faded away.
For a long time, in England, these two systems of law— Bankruptcy
Statutes and Insolvency Statutes— ran along together, those of Insolvency
being the more numerous, but the two subjects were kept quite apart.
At length they began to assimilate, and in the recent legislation, especi­
ally by the latest, they have continued to approach nearer and nearer to­
gether, until there is now scarcely any discrimination between them.
In this country, there has not been any very clear distinction between
them, at any time; but one consequence from the nominal distinction
was important. These colonies, from the earliest times, enacted insolvent
laws, but not bankrupt laws. And when the Constitution of the United
States gave to Congress the power to pass a bankrupt law, it seems to
have been thought that this in no wise affected the rights which the
States continued to possess, o f enacting what insolvent laws they chose
to. This right they have continued to exercise to the present day; and
always under the name of insolvent laws. But, so far as we may affirm
with much positiveness any conclusions on this obscure subject, we may
say that the distinction between insolvent laws and bankrupt laws is now,
in this respect at least, nothing, and that a State can pass no law calling
it an insolvent law, which it could not pass under the name of a bankrupt
law ; and that the power given to Congress to pass a bankrupt law does
not take it away from the States, who may pass what bankrupt laws they
will for their own citizens, whenever there is no general bankrupt law en­
acted by Congress. And even if there be such a law, any State may, per­
haps, pass any bankrupt law which in no way interferes with or contra­
venes the statute of the United States.
This last remark, even if admitted to be true, cannot have much prac­
tical value; for it can hardly be supposed that Congress will pass any
general bankrupt law which would be so inadequate or incomplete that a
State could pass an insolvent law, o f any importance, which should not
interfere with it. Where cases had been commenced under the State in­
solvency laws, before the bankrupt law went into force, it was decided
that they might go on to maturity, and were not superseded by this
national law.
At present, we have no general bankrupt law, but a great variety of
State insolvent laws. Of their special provisions we do not propose to
say much ; but shall confine our remarks, principally at least, to those
general principles which may be supposed common to them all, where
not specifically excluded. And of these, what may be called the funda­
mental principle is an equal division of the assets (or property applicable
to debts) of an insolvent among his creditors.
A t common law, any person, whether a trader or otherwise, may pay
any debt at his own pleasure, whether he be insolvent or not; and if such
payment exhaust his means, so that he can pay no other creditor, the




10 4

The Law o f Bankruptcy and Insolvency.

[February,

common law makes no objection. In other words, it permits a preference
among creditors, to any extent and in any form. Nor does the English
Statute of Fraudulent Conveyance affect this question. This statute was
passed in the reign of Queen Elizabeth, and has been considered as
brought over to this country; so that it is now a part of our common
law. By its provisions, any transaction is void, because fraudulent, if in­
tended to “ hinder, delay, or defraud a creditor.” But it is not considered
that a debtor does this by paying one more than another, or paying to
some of his creditors all of their debts, and to others nothing, provided
hir reason for paying to these last nothing is that he had nothing left for
them after paying the others.
A t this right o f preference, the bankrupt system was directly aimed.
Since the reign of Elizabeth, it has been restrained and almost suppressed
in England. But in this country', where, as has been said, the English
bankruptcy system was never introduced, and this whole matter was re­
gulated by common law, a system of voluntary assignment, with prefer­
ences of all kinds, prevailed extensively. The frauds and mischiefs re­
sulting from this, gradually produced a conviction that both expediency
and justice imperatively demanded an equal distribution o f the assets of
an insolvent among all his creditors. In Maine, New Hampshire, Massa­
chusetts, Connecticut, New Jersey, Delaware, Pennsylvania, Ohio, Mis­
souri, Georgia, and Louisiana, special assignments, with preferences are no
longer permitted. In other States, particularly in New York, there
seems to be a growing disposition to encourage an equal division, by pro­
viding not only, as is now' generally done, that the insolvent shall be dis­
charged only when his effects are equally divided, but that all preferences
shall be void. This system is found to operate well wherever it is tried,
and we cannot doubt that it will be, at no distant day, universal. W e
are not aware that any State which has suppressed special assignments
with preferences, has ever returned to them. In some of the States, how­
ever, preferences of debts due as wages o f labor, to a certain amount, are
permitted.
THE TRIBONAL AND JURISDICTION.

The bankrupt law o f the United States gave the jurisdiction of (or
right to hear and determine) all cases of bankruptcy to the District
Courts of the United States ; and the reasons for this are so obvious, that
it would undoubtedly be so provided in every future law. The State in­
solvent laws, for the most part, provide commissioners of insolvency, and
among these the judges of probate are sometimes placed ex officio; but
there is no uniformity on this point. There is, certainly in general, and
we think always, a supervisory power in the Supreme Court, or in the
Court of Chancery, of each State.
I f a creditors claim be doubted, the assignees may have the question
decided by a jury,— and so may the creditor, if his claim be disallowed,—
bv the provisions o f many States.
’ A s to the manner o f initiating the proceedings in bankruptcy, the
national law contained some provisions copied substantially from the
English law s; and in the short time during which the law was in force,
vatious rules were made by the courts, or resulted froi}> adjudication and
usage. A t present, each board o f commissioners, or each commissioner,




1865.]

The Law o f Bankruptcy and Insolvency.

108

Beems to have the power of framing its own rules of practice, always,
however, subordinate to the principles, first, that each case shall begin
with an application, either from the creditor (where that is permitted) or
the debtor, under oath, and then full notice, by advertisement or other­
wise, to all interested, with sufficient delay, and convenient arrangement
as to time and place. And, secondly, all the facts material to any party
are to be proved before the proper tribunal, by proper evidence, verified
by oath, and subject to cross-examination, and generally governed by the
common principles of the law of evidence.
There is also introduced into most of these codes a rule derived from
equity practice, by which the debtor may be compelled to answer, under
oath, upon the interrogatories put to him by the commissioners, or by
one or more creditors ; especially upon matters bearing on the question
whether he has made any fraudulent or favoring assignments o f property,
with a view to bankruptcy, or while actually insolvent. But the commonlaw privilege would in most cases still be allowed him, o f refusing to
answer any question, if the answer could expose him to punishment for a
crime.
The power to compel an answer is given to the commissioners, by
authorizing them to issue a writ or warrant, and commit a recusant to jail
for contempt, as a common-law court could do.
A t common law, any kind or amount o f preference o f one or more
creditors over others was, as we have seen, valid. That is, the law re­
quired of a debtor to pay his debts; but permitted him to pay any debt
at his own election, although by such an appropriation o f his means he
could pay no part of any other. As, however, the general purpose o f the
insolvent laws is to secure an equal division o f all the assets among all
the creditors, for this purpose they avoid any payment, assignment, or
transfer which would have, or was intended to have, the effect of favoring
a part of the creditors at the expense of the others.
There is, however, an obvious difficulty in applying this rule. If a
trader, as is usually the case, passes gradually into a state o f insolvency,
almost any creditor, who has the good fortune to be paid in full, gains an
advantage over the rest, and reduces the means of the insolvent, to their
injury. A line, however, must be drawn somewhere. If any transfer or
appropriation of property be made with fraudulent intent at any time, and
this fraud is known to the transferee, the transfer itself is void at common
law. But, as was said, the mere intention of giving to a creditor priority
or preference is not fraudulent. And the national law contained, and
most, if not all, our insolvent laws contain, a provision defining a period
of time p rior to which any transfer of property from a bankrupt, provided
there was no fraud on his part with the knowledge and connivance o f the
assignee, is valid; but any assignment or transfer or payment after that
period, if made by the bankrupt in contemplation o f bankruptcy or insol­
vency, is void, however innocent or ignorant the assignee. In the national
law this period was two months; it differs in the different States, but is
about the same time generally.
In computing this time, it is said that the day on which the transaction
took place, or the day on which the petition is filed, must be excluded.
In legal computations o f time, generally, the law knows no fractions of a
day. But in the application o f the insolvent laws, the very hour is in,

rou

in .—

ko. ii.




7

106

The Bank o f the Netherlands.

[February,

quired into. The reason o f this, or at least its justice, is obvious. If one’s
rights depend upon whether he has lain in prison two months, or whether
a certain thing was done more or less than two months before another, or
whether a petition was filed under a law before that law was repealed or
not, it is as proper to ascertain the exact time, as it is when there is a
question whether an attachment of land or a record of a conveyance was
first made. This has been denied in some cases, but not, we think, on
good grounds.
It would seem that this question o f fraudulent preference should stand
upon the same footing as questions o f fraud generally. It is a mixed
question of fact and of law ; and so far as it depends upon law, or upon
construction, the court may decide it, and the parties have a right to have
it decided by the court. But so far as it rests upon proof, or is to be in­
ferred from evidence direct or circumstantial, it would seem to be a ques­
tion o f fact, upon which a jury might pass.
It may be remarked in this connection, although also true without re­
ference to the laws of bankruptcy or insolvency, that if one purchases of
another property, either real or personal, for its full value, and pays the
price in money, it is still a fraudulent and void transaction, i f the purch­
aser did it with intent to aid the seller in defrauding his creditors. And
in this case the sale is wholly void, and the assignee o f the seller, if he
goes into bankruptcy, will recover the property, although the sale take
place before the limited period above referred to.
The very important influence o f bankruptcy or insolvency in extending
the lien of a seller, so that he may reclaim his goods, unless they have
come into the actual possession of the insolvent, or, in other words, the
right which insolvency gives to the seller of stopping the goods in transitu ,
was fully considered in the article on Stoppage in Transitu. This right
depends of course upon insolvency, but not necessarily upon legal and
formal, or, as it is sometimes called, notorious insolvency.

TIIE BASK OF THE NETHERLANDS *
E v e r t one who has read A d am S m ith ’ s In q u iry knows something
about the Bank o f Amsterdam, an establishment which stopped payment
in 1795. W ith the present state o f banking in Holland, however, scarce­
ly any one in this country is fully acquainted. A little information on
this subject may therefore prove acceptable to our readers.
The Bank o f Amsterdam was simply a bank o f deposit, and for this
reason did not issue any notes. In fact, no bank in Holland ever issued
notes before the year 1814, when the so-called “ Bank o f the N ether­
lands” was established by Royal Charter, with a capital o f £ 4 1 6 ,6 6 0 ,
divided into 5,000 shares o f £ 8 3 each.
Small as this capital was, and though the Dutch Government alone
took one thousand shares, a year after the Bank had com m enced its




* See the London Economist, January 7, 1865.

18 65 .]

107

The Bank o f the Netherlands.

operations no m ore than £ 200,000 had been subscribed, and it lasted
another year before the subscriptions amounted to the £4 1 6 ,6 6 6 required.
This disinclination on the part o f the public to invest their money in the
Bank is easily explained. Bank notes at that time were quite unknown
in Holland, and the only knowledge people could get on the subject was
rather unfavorable than otherwise. It is to be remembered that in 1814
the Bank o f England had not resumed payment in gold. So the notes o f
the new establishment were not readily taken by the public, and, as a
matter o f course, capitalists were unwilling to invest their money in a
concern which was not trusted by the public. Besides, there is another
reason why it was very long before the Bank could issue a large number
o f notes. A t that time no Dutch firm of high standing would have
thought of discounting a bill. D iscount was considered as the last means
by which a man, when hard up, could avoid bankruptcy. A ccordingly,
the Bank had very little to do, and could only gradually increase its busi­
ness.

The capital being small and all transactions being conducted in a very
prudent way, the Bank succeeded, however, in making some profits. In
1815, a dividend was declared of 5 .8 4 per cent, on 2,445 shares, in 1816,
o f 6 per cent, on 5,000 shares, and in 1819, 1 0 .3 9 per cent, was paid to
the shareholders. Owing to this circumstance the Bank could increase
its capital by £416,666, which was at once subscribed by the public.
The circulation o f notes then amounted (31st o f January) to £8 33 ,3 33 .
O f course our readers d o not want us to trace the history o f the Bank
in all particulars up to the present date. The few details we gave may
be sufficient. The distrust with which the bank notes were received by
the public compelled the Directors to be as prudent as possible. Looking
m ore to the future than to high profits at once, they constantly kept a
large metallic reserve, very often equal to 100 , and very seldom under 70
or 80 per cent, o f their cash liabilities. Even in the midst o f the crisis o f
1857, their proportion never fell below 59 percent. The following figures
inav give an account o f the progress o f the Bank :—
Capital,
Date.

March 81, 1815...................
“
1825...................
“
1835...................
"
1845...................
"
1855...................
May
9, 1864...................

including Reserve.

£203,3iS3
875,000
891,666
1,437,600
1,432,600
1,633,333

Deposits.

£905,000
1,100,833
1,425,000
1,645,833
1,827,500
2,620,000

Circulation.

£160,0C0
1,205,000
2,022,500
3,087,500
7,713,333
9,941,866

Bullion.

£835,833
1,666,066
2,145,000
8,585,833
8,564,166
7,196,666

The original charter o f the Bank had been given for 25 years, and con­
sequently expired on the 31st o f March, 1839. A second charter was
then granted, rather similar to the old one, though a little more liberal.
So, for instance, the curious restriction which did not allow the Directors
to raise the rate o f discount beyond 5 per cent, was removed. It was also
permitted them by this charter to discount promissory notes and to ad­
vance money on foreign stocks, which they had never done before. On
the other hand, the Bank was ordered to establish a branch at Rotterdam.
It is very odd that this order has never been carried out till this year. It
has been constantly deferred, and nobody seems to have made any objec­
tion.




108

The Bank o f the Netherlands.

[January,

This second charter was granted for twenty-five years, and, as the first
one, simply by a Royal ordinance, without any interference o f Parliament.
Very little was said in the newspapers on the subject. Everybody seemed
to be perfectly satisfied with the management o f the Bank, and nobody
wished to adopt any other system than that which existed.
W hen, however, the Bank Charter expired again, all this had changed
a little. A good many people were dissatisfied with the Bank. They
taxed the Directors with over-prudence, and with not rendering all those
services to the public which they m ight render. They professed not to
know why free competition should be admitted in every department o f
trade, and not in banking. Indeed, competition had never been excluded
even there in theory; there existed no law or ordinance preventing any
bank or private person from issuing notes. Y et, practically, the Bank
did possess a m onopoly, because all other notes, except their own, were
required to be stamped. N ow , this m onopoly, it was argued, ought to be
done away with. So, in order to give fair play to discussion, the Govern­
ment decided upon having the question settled by Parliament. A Bill
was introduced, by w hich it was proposed that no Company or private
individual should henceforth be permitted to issue notes, unless authorised
to do so by a special A ct. A t the same time this permission was proposed
to be granted to the Bank o f the Netherlands. This Bill was strongly
opposed. It was said that such a regulation would practically strengthen
the m onopoly o f the Bank, instead o f abolishing it. Still, after a very
warm debate, the Bill was passed by both Houses by a large majority.
Since then a year has elapsed, and no other permission to issue notes has
yet been granted, nor would any one think o f making a request for that
purpose, because the Dutch Parliament would be sure to refuse. The
general feeling in H olland is very much opposed to free competition in
this matter.
N or is it unnatural that this feeling should exist. The Bank o f the
Netherlands may be charged with over-prudence ; it is admitted by all
parties that this is about the only fault it ever committed. The large
metallic reserve it keeps may be detrimental to the interests o f sharehold­
ers ; but it.cannot be denied that in bad times this very reserve always
enabled the Bank to give every sort o f facilities to trade. To this it must
be ascribed in part, that most commercial crises have nowhere made so
few victims as in Holland. Every merchant always knew, that however
large the drain o f bullion m ight be, there always was money to be had on
good security,— either o f bills, stocks, or merchandise,— at the Bank.
Every reader o f this journal knows how the Bank o f England managed
before and during the crisis o f 1847. After having kept the rate o f dis­
count as low as 3 and 3£ per cent, till the beginning o f 1847, they raised
it to 5 per cent, in April, 6 per cent, in August, and 8 per cent, in O cto­
ber, whifst in the beginning o f that month no other but 14 days’ bills
were discounted, and all advances on stocks absolutely refused. This
state o f things lasted till the A ct o f 1844 was suspended. Everybody
knows that. W ell, how did the Bank o f H olland act during the same
p e rio d ! It raised its discount to 4 per cent, as early as September, 1845,
and in November o f that same year to 5£ per cent. This rate was main­
tained, with few alterations, till A pril, 1847, when it was lowered to 4^
per cent., though in N ovem ber it had to be raised again to 6 per cent.




1865 .]

109

The Bank o f the Netherlands.

This, however, was the highest rate charged, and during the crisis all sorts
o f facilities were granted to the public, as usual, still more so than in ord­
inary times. The same thing happened once more in 1857. The dis­
count was raised before the crisis commenced, and during that year the
highest rates were 7 per cent, for bills o f exchange and 7b per cent, for
promissory notes. In fact, as long as the Bank has existed, 7£ per cent,
has been the highest rate o f discount.
W e give these details merely to account for the strong feeling which
exists in H olland in favor o f maintaining the m onopoly, not as an argu­
m ent to prove that this feeling is right.
As to the operations o f the Bank, they are very simple :
1st. The Bank keeps the deposits o f the Government. These are near­
ly all the deposits it receives, for it is not the custom in Holland to keep
an account with a bank. Everybody keeps his money in his own safe.
This is explained by the circumstance that the Bank allows no interest
whatever on deposits, and would probably charge a commission for collec­
ting bills, <&c.
2 nd. The Bank discounts bills and promissory notes. For the latter, £
per cent, per annum is charged extra, as a rule.
3rd. The Bank advances money on securities, either o f stock or mer­
chandise. For the former the minimum, for the latter the maximum, rate
is usually charged.
The first o f January, 1865, the account o f the Bank stood thus:
L I A B IL I T I E S .

ASSE TS.

Capital.........................
R eserve.......................
Circulation....................
Deposits.......................
Sundry accounts..........

Bills discounted...................
Loans on merchandise and
stock..................................
Bullion...................................
Sundry accounts.................
Invested reserve.................
£18,221,159

£4,066,958
2,628,989
6,807,406
44,195
178,618
£13,221,169

The legal proportion between the bullion and the cash liabilities o f the
Bank is not regulated by A ct o f Parliament. It is fixed by a Royal ordi­
nance and may be changed any moment, if necessary. It is at present 2
to 5. A ccordin g to this the Bank might issue now about £12,500,000.
H aving issued only £8,166,666, the present stock o f notes is about
£4,333 ,3 33 , which is called rather a low figure, as in April it amounted
to £6 ,375 ,0 00 . Still it is a great deal better than two or three months
ago, when it fell to £3,333,333. The rate o f discount was then raised to
7 per cent. It has since been lowered to 6 per cent, for bills o f exchange
and 6^ per cent, for promissory notes.
A s stated before, the Bank has no branches anywhere. B y the law o f
December, 1863, however, it is bound to have one in Rotterdam (which
was to be opened on the 1st o f January, I 860 ), and to establish agencies
in all the principal places in the country. This measure has been taken
in order to avoid the blame that the Bank only serves for Amsterdam,
and does nothing for the provinces.




110

[February,

Commercial Chronicle and Review.

COMMERCIAL CHRONICLE AND REVIEW.
STR IN G E N C Y IN MONEY M A R K E T AND THE CAUSES— R ECEIPTS O r THE TREASU RY

D U RIN G

DKOF.M-

BE R — IN TE R N A L REVENU E— MEANS A T THE D IS P 0 8 A L OF THE TRE A S U R E R — THE TEN -FO RTY LOAN
— A B IL IT Y

OF

GOVERNMENT

CUSTOMS, TA XE S, R E VENU E
R ECEIPTS— THE TA R IFF

TO
AND

PAY

INTEREST

LOANS

THE

IN

GOLD— THE

PAST

T A R IF F

Y E A R — INTF.RK8T

MUST

TO

P R O H IBITO RY— FAILU RES TH E PA ST YEAR— GOLD

PRODUCE, AND T H E EFFECT OF T AXES A N D

PAPER

PRIOES— IMPORTS

JU L Y

BE

MODIFIED—

AND

CERTAIN

MARKET— E XPO RTS OF

AND

EXPORTS

FOR

NINE

MONTHS.

T here has been a continued stringency in the money market during the past
monih, mostly due to the necessities of the Treasury Department, which, with
large arrears outstanding, due to the public creditors, has been a large borrower
upon gold stocks, thus absorbing a considerable amount of capital at a time
when there is a demand for capital to put into new National Banks, and when
the State Banks, which are mostly making preparations to merge into the
National system, are more chary of loans. The close of the year, bringing with
it a settlement of general accounts, also conduces to greater stringency. These
leading, with many minor causes, have sufficed to maintain the price for money
fully up to the legal rate. It is very apparent that while the Government con­
tinues to be a borrower of capital at the rate of $2,500,000 per day, for non­
productive purposes, that the rate of interest must continue to increase, unless
temporarily checked by the dilution of the currency through greater issues of
legal-tender and National Bank notes. This process enables the Government to
get a greater amount of money, on seemingly easier terms, but it gets less capital,
or purchasing power, for the same ultimate payment. It, in fact, pays more for
capital, by engaging to pay gold for paper borrowed. The operations of the
Treasury, for the month of December, were as follows :
Received from five-twenty bonds ................................
Received from temporary loan........................................
Received from ten-forty bonds........................................
Received from seven-thirties..........................................
Received from internal revenue......................................
Received from hospital money, etc.................................
Received fiom fractional currency issued.....................
Total Receipts, December......................................

$25,000,000
2,836,583
33,042,250
16,581,550
20,249,983
22,000
108,902

00
27
00
00
10
00
45

$97,841,218 82

Thus the sales o f gold interest stock formed a large item in the amount ob­
tained. and the 7.30 bonds, although not immediately bearing interest in gold,
are convertible after three years into gold-bearing stock. The receipts from the
internal revenue were at the rate of $240,000,000 per annum, but this amount
included a considerable part of the extra 5 per cent tax on the income of 1863.
The negotiation of the 5 per cent 10 40 bonds was kept open until the 7 th o f
January, up to which time $80,000,000 additional had been negotiated, leaving
about $40,000,000 of the authorized amount ($200,000,000) unsold. There also
remains about $140,000,000 of the gold stock authorized by the act of June,
1864, unsold. This, with a sum of $60,000,000, still unissued, of the 7.30 paper




1S 65.]

Commercial Chronicle and Review.

Ill

loan, constitute all the means at the disposal of the Treasury, with the exception
of the one year certificates, to which there is no limit. In the early part of
December, the National Banks and Treasury agents took about $40,000,000 of
the 10-40 5 per cent stock. It was then urged upon the Secretary to stop the
sale by the Treasury until the public had absorbed that amount. This he hesi­
tated about doing until the close of the month, when the following notice
appeared :
“ T re asu ry D epa rtm en t , December 23, 1864.
“ Notice is hereby given that the ten-forty loan will be withdrawn on the 7th day
of January next. No subscriptions, therefore, will be received after that date.
“ W. P. F essenden , Secretary of the Treasury.”

The stringency of the money market, no doubt, prevented the rapid absorption
of the stock, and the time for the payment by instalments was extended to facili­
tate the operation. To hold these stocks required a good deal of capital, and
some of the National Banks adopted the plan of lending on the stock. It is
apparent that the working capital of the country is finding its way out of pro­
ductive employments by realization of eifects in paper, and a reinvestment
in the Government gold stocks. It is very apparent, however, that the ability
to pay those stocks in gold is approaching a limit, unless some change is made.
The dependence of the Treasury for gold, to meet the interest, is upon the gold
derived from customs. The amount which may be so derived, it is evident, is the
limit of the amount of interest which can be paid, unless the Government comes
into the market as a purchaser. Under these circumstances, the clear necessity
exists to make the revenue the sole object in levying duties. This, unfortunately,
has not been the case. On the contrary, the tax seems to have been imposed far
more with a view to protection of home manufacturers than to benefit the
National Treasury. The result has been that while the amount of interest due
on the debt has been increasing, the revenue from customs has been decreasing,
mostly for the reason that the rates being doubled last May, at a time when the
price of gold began to rise, they became prohibitory in their character.
The report of the Assistant Treasurer for this port for the past year gives the*
following leading heads o f revenue :
January..............................................
February ..........................................
M a rch ................................................
April ................................................
May....................................................
J u n e ........................................ . . . .
July....................................................
A u gu st..............................................
Septem ber........................................
October..............................................
November..........................................
December..........................................

Loans.
$37,463,896
15,696,350
7,878,037
6,947,933
5,184,612
60,582,650
8,243,736
6,091,422
8,292,261
14,465,967
10,300,614
28,598,253

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

$209,655,531

Internal Revenue.
$2,275,409
1,438,578
1,452,522
1,764,305
1,179,966
865,851
972,734
1,022,969
1,220,966
774,144
733,552
924,461
$14,625,397

Customs.
$6,179,605
7,483,611
7,670,092
14,658,573
3,908,058
3,348,010
8,641,382
6,272.002
4,113,210
3,697,335
3,487,561
3,467,369
*$67,926,708

* These returns of the customs receipts do not agree with the later returns which
we give in our review of the Trade and Commerce of New York.




112

[February,

Commercial Chronicle and Review.

The column of customs is the most important. It will be remembered that last
year the imports were considerable, and the entries were large, under threats of
higher duties; and when the law passed for the duties to be doubled in May, the
qucntities taken out of bond were very large, making receipts of 535,991,781
from January 1 to May 1. Those duties represent a very large amount of goods
taken out of bond and put upon the market at lower rates of duties, and these
goods have been supplying the market ever since. The amount of duties in the
last eight months has been only 531,035,927, or about 90 per cent of the revenue
of the first four months.
The duties of the last eight months being at much higher rates, represent a
much smaller amount of goods. The supplies have been less to meet the demand,
and the quantities now in bond are inconsiderable. The imports at the same
time will be small, and it is not probable that more than one-third as much gold
will be taken for customs this year as last, up to May. The amount of gold now
in the Treasury is small. The interest payable between this and July is as fol­
lows :

March 1, 10-40s...............................................................
May 1, 5-209...................................................................
July 1, 5-208...................................................................
Total

Amount.
$200,000,000
576,833,500
335,232,290

Interest
$5,000,000
17,275,655
10,000,000

$1,111,170,792

$32,276,655

Thus, between now and July as much must be paid for interest as has been
collected in duties during the past eight months.
The receipts of gold at this port in six months, from January to July, and
from July to January, as compared with the rest of the Union, are as follows:
January to J u ly ................................
July to January................................
Total........................................

New York.

Other Ports.

Total.

$43,147,849
24,778,859

$10,978,620
6,120,210

$54,126,469
30,899,069

$67,926,708

$17,098,830

$85,025,538

Thus, in the last six months, the receipts for the whole Union are less than
the interest that accrued in that time. The balance of gold left over from the
large revenue of last Spring was in great part thrown away by Mr. C hase in
the mad policy of putting down the price of gold.
The interest on the public debt has increased as follows :
May to November, 1864......................................................
November to May, 1865.......................................................

$28,110,000
33,000,000

This comprises only the amount of debt payable at this time, and does not
include the issue of the remaining amounts authorized, nor the conversion o f out­
standing paper bonds into gold stocks. To maintain the amount of revenue it
is apparently necessary to reduce the rate of taxation in order that the present
prohibitory operation of the duties may be modified, and so permit of greater
receipts. The effect of the duty upon the cost of goods is greatly exaggerated
by the depreciation of the currency. Thus a oertain description of woolens pay
sixty per cent tax in gold, and the same article of home manufacture pays five
per cent in paper. The effect is as follows :




18 6 5 .]

113

Commercial Chronicle and Review.

Premium cost........................................................................................................
$1.00
Premium on exchange........................
127
Gold duty...................................................................................................
60
Gold duty premium.................................................................................
76
2 .6 *

Total tax..................................
Cost imported goods...........................................................................

$3.63

The tax on the home made article of the same description is only five cents
per dollar. A s soon, therefore, as the duty becomes prohibitory the Treasury
loses 60 cents gold due to the public creditors, and gets only five cents in paper.
The national credit demands the prompt revision of this system, under which
business o f all kinds is languishing, and the substitution of one which will
give the greatest amount of revenue with the least obstruction to commerce.
The prices o f the leading Government stocks are as follows :
P R I C E S U N IT E D S T A T E S P A P E R .

— 6’s 18SI.— »
Beg.
Coup.
no*
Ill*
•

D ec. 8 1 , . . . .
Jan. 7 , . . . .

“

14........

**

91

“

28.........

in *

liii

1124
111
1104

1124
110

1094

5’s, 1874.
100
100
102

99
98J

Gold.
6 per ct.
price.
llMO’s. 1 year certit.
2294 a 2294
101f
96f
227 a 2274
102
96f
217ft a 221
98
102f
1974 a 208
1014
974
118f a 220
98
1004

6 per ct., 5 per ct

5-20's.

1084

109
110

108f
108 j

The last quotation in London, January 14, for the 5-20’s was 45f a 45|. The
highest quotation during the month was 46. In addition to other causes for dimin­
ished business activity, or rather non-revival of the usual spring trade, has been
the conviction that Mr. F essenden would return to the Senate. What policy a
Dew Secretary might pursue it is impossible to surmise, since the administration has
no decided policy. The conduct of the department hitherto has been one of
daily shifts and expedients. Frequently at variance with well settled principles
o f economical science, and therefore entirely outside the calculations of the most
sagacious.
The effect of the unstable paper currency in checking the credit system, and
forcing cash transactions upon the business community, is very apparent in the
returns made o f the number of failures, and the amount of their liabilities, in the
pa8t few years, as follows:
Number.

1857...........
1858...........
1859...........
1860...........

Liabilities.
$ 2 6 b ,8 18,000

1861...........
73,60S,747 1862...........
51,314,000 186?...........
61,730,477 1864...........

Number.

496

Liabilities.
$ 1 7 6 ,6 6 2 ,1 70

23,049,300
7,899,000
3,579,700

The year 1857 was the panic year, and in 1861 the war, by cutting off re­
sources, caused a considerable amount of distress, but the curtailment of credits
has since given a very effectual check to that class of mercantile evils. The gold
market during the month has been very unsettled. The taking of Savannah
caused a temporary fall in the price from 236 to 2114, but the rate at once re­
covered under the demand for export and the purchases of those who bad
operated for a fall. Since then the success at Fort Fisher and the various
peace rumors which have been current, have caused continued fluctuations.




114

Commercial Chronicle and Review.

[February,

The exports of general merchandise from the port are on a very limited scale
as compared with former years. The exports of breadstuff's to Great Britaia
and the Continent this year'since September 1, are as follows :
Flour.

1861
1862
1863
1864

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

1,232,585
394.928
402,650
54,995

W heat

16,710,333
12,399,804
4,937,984
1,228,333

Corn.

4,985.430
3,273,813
239,459
56,938

In this return we have the exact figures to indicate the ratio of decline in our
foreign trade. The value of these exports for the four months embraced in the
figures, according to the Liverpool price in gold, is as follows:
1 861 ................................
1862 ................................

$42,600,000 I 1S63................................
27,842,090 |1864 ................................

$8,909,042
1,850,819

Thus the trade is nearly extinguished. This is due, no doubt, as well to the
good harvests of England and Western Europe as to the deranged state of our
currency here. The latter cause will, however, continue to act with ever in­
creasing force, because the cost of producing wheat here is enhanced by the higher
prices of all the farmer consumes. For instance, it adds to the cost of labor, the
cost of transportation, the amount of commissions and interest, and above all, to
the taxes, local, State, and federal. These are all no doubt paid in paper, but
they enhance the cost upon the exported wheat in proportion to the price of gold.
Breadstuffs are not articles of monopoly, like cotton, for which the American
article commands the markets of the world ; bat is one in which the sharpest
competition exists, and that of the United States having further to go at greater
cost of transportation, maintains its footing only with difficulty while it is not
subjected to taxation.
The following table shows the quarters of wheat imported into Great Britain
for the past nine months of 1864, with the value in pounds sterling. Wheat is
now entered in Great Britain by the hundredweight, instead of measure. The
quantity bought of the United States, including California, was about 40 per
cent of the whole purchase, at prices rather less than those paid other countries.
Thus the cost of Prussian wheat was 10s. 4d. per cwt., while that of the United
States was 9s. 4 d .:
Quantity, cwt.

Value.

Russia..........................
Prussia.........................
Denm ark.....................
Mecklenburg...............
Hanse Tow ns...............
France .........................
Turkey and Wallackia.
E g y p t ...........................
United S ta tes.............
British North America
Other countries............

2,825,463
8,616,145
853,056
466,392
465,647
481,073
377,646
366,860
7,100,042
824,806
346,203

£ 1,2 1 4 ,9 1 1

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

17,723,333

£8,335,552

■Wheat—From

1,886,523
37.3.223
285,635
208,451
233,4 99
162,632
153,324
3,342,849
365,547
159.223

It follows that if the United States wheat is to go loaded with taxes and extra




18C5.]

Commercial Chronicle and Review.

115

expenses, that of other countries will have the entire market, and that the un­
taxed crops of Canada will successfully compete with those of the United States.
This reduction in the quantities exported, as a matter of course, reduces the
supply of bills, and those who are required to remit for sugar and other merchan­
dise avail themselves of a fall in gold to make those remittances, and the fall is
thereby checked. On the other hand, much of the gold paid out by the Govern­
ment is sold, and the Banks also, which are making arrangements to convert
their business from State to federal authority, are also selling gold. Dealing in
gold, both buying and selling, has become a very important institution in this
country. The amount collected by the Federal Government last year through
the purchase of importers was $102,316,152, or very nearly $2,000,000 per week.
One-half of that amount was paid out for interest, and found its way again to the
brokers, and the other half was sold by the Treasury in the open market. Thus
the Government operation, in collecting, paying, and selling, amounts to
$ 200,000,000 per annum, at the same time the importers bought in addition
$50,000,000 to remit in payment of goods, and.about $12,000,000 arrived from
California, i t is evident from these facts that gold dealing is a leading business,
and employs a great number of brokers. It was, however, of a troublesome and
hazardous nature, since the gold in bags had to be passed from hand to hand, at
more or less risk. For this reason it was determined to make a common deposi­
tory at the Bank of New York of the gold held, and to transfer it from hand to
hand by orders. The amount of gold so deposited was in the first week of
January about $1,200,000. There was beside a good deal of gold deposited
with other Banks by customers for safe keeping, and in some cases did not enter
into the returns of the Banks. The gold movement was comparatively as follows :
Specie in
Received
Imported
Gathered

banks and Sub-Treasury December 1 ..................................
from California in December..................................................
from foreign ports in December............................................
in from hoards in December..................... .............................

$28,961,268
2,205,619
114,976
4,876,964

S u pply........................................................................................................
Exported in December.............................................................................

$36,158,82'/
6,104,377

Leaves in banks and Sab-Treasury, January 1, 1865..........................

$30,054,450

The demand for gold for the payment of goods has been less because o f the
diminished imports. It will be borne in mind, however, that a large amount of
goods was taken out of bond in April last to avoid the double duties imposed in
May. Those goods have gradually found their way to the shelves of jobbers and
retailers, and have been remitted for by the importers. There has also been
more demand for remittance, in consequence of the purchases by the Bank of
France during the recent stringency strain. The imports and exports of gold
and silver to and from Great Britain during the first ten months of 1862, 1863,
and 1864, compare as follows :
IM P O R T S .

1862.

1863.

1864.

G o ld ..............................................
S ilver............................................

£16,164,465
8,616,611

£16,272,909
8,481,084

£13,847,154
9,515,538

Specie imports.....................

£24,781,076

£24,753,993

£23,362,690




11 6

fFebruary,

Commercial Chronicle and Review.
EXPORTS.

G o ld ..............................................
S ilver............................................

£12,208,069
9,782,415

£12,899,087
8,941,354

£10,438,672
8,676,842

Specie imports.....................
Imports exceed exports.............

£21,990,434
2,790,592

£21,840.431
3,413,562

£19,115,514
4,247,176

The production of gold in California has been in the past year scant on account
of the great drouth which has prevailed there. That has now passed away, and
copious rains give promise of the greatest abundance.
The Custom-House has at last succeeded in bringing up its statement of Im­
ports and exports to the conclusion o f September. The following are the im­
ports at New York from foreign ports, for July, August, and September, 1864 :
consumption...................
warehouse.......................
........................................
bullion..............................

July.
$6,382,928
14,954,635
917,684
128,052

Total entered at p o r t ...............
'Withdrawn from warehouse.. .

$22,883,299
3,386,873

Entered for
Entered for
Free goods
Specie and

August.
$6,608,653
10,437,478
936,474
245,858
$18,223,463
7,967,843

September.
$4,390,114
6,258,568
832,667
58,220
$10,539,459
6,852,829

The following comparison shows the imports of foreign merchandise at this
port for the first nine months of the last four years :
1861.

January............................
$26,827,411
February..........................
16,841,707
March...............................
18,204,351
A p ril................................
14,886,393
M ay..................................
14,949,281
June..................................
12,649,733
Ju ly..................................
14,938,851
August .......................................8,885,928
S eptem ber.....................
7,805,461
T o ta l.......................
Cus. revenue same period

$134,989,116
15,856,132

1862.

1863.

$12,020,829
18,872,140
18,719,866
13,252,822
14,248,621
12,836,195
20,358,202
14,304,843
18,147,917

$15,739,576
12,027,846
18,930,895
17,385,315
14,324,923
12,597,516
16,003,677
15,038,129
16,499,940

1S64.
$18,977,894
21,643,937
23,667,119
26,16§,681
23,975,144
20,926,314
22,383,299
18,228,468
10,539,469

$137,856,395
42,276,832

$137,547,817
42,323,075

$189,504,760
56,370,920

It is to be remembered that the imports are represented in gold figures; while
the exports are entered in currency figures. The following are the exports from
New York for the months of July, August, and September, 1864:
Domestic produce................... . .
Foreign free..................................
Foreign dutiable...........................
Specie and bullion.......................

July.
$26,261,673
249,404
5,137,460
1,947,329

August
$26,617,850
126,537
2,231,782
1,001,813

September.
$15,5^5,548
818,742
2,460,138
2,835,398

Total exports.......................
Total export o f specie.........

$33,585,866
31,638,587

$29,977,982
28,976,169

$21,789,826
18,904,428

The following will show the exports, quarterly, exclusive of specie, for the
first nine months of each o f the last four years :
1864.
1863.
1861.
1862.
First quarter . .
Second quarter
Third quarter.,
Nine months




$33,477,742
33,123,489
30,175,918

$32,076,568
29,798,844
45,313,299

$50,615,908
41,046,726
38,825,587

$41,429,756
43,446,686
79,519,134

$96,777,149

$107,187,211

$130,487,221

$169,395,676

1865.]

117

Trade and Commerce o f the P ort o f N ew York.

The re-exports of foreign goods for the nine months of 1864, included in the
above total, amount to 81,582,348 of free, and 813,961,235 of dutiable, making
a total of 815,543.583 reshipped to a foreign market, three times the quantity
reshipped for the same period of the previous years.
The following comparison gives the total imports and exports for the first nine
months o f the last four years :
Nino months of
1 8 6 1 .......................................................
1862 ......................................................
1868..........................................................
1864..........................................................

Total Imports.
$184,989,116
137,856,395
187,547,817
189,504,760

Total exports.
$99,956,963
150,030,850
163,333,715
204,332,287

TRADE AND COMMERCE OF THE PORT OF NEW-YORK.
RECEIPTS

AND

EXPO RTS

OP

DOMESTIC

PRODUCE— EXPORTS

07

DOMESTIO COTTONS—■R E V IE W OP

PETROLEUM T R A D E — W H O LE S A LE PRICES A T K E W -V O R K FOR S IX Y EARS— IMPOETS OF MERCHAN­
DISE OTH E R T H A N D R Y GOODS— IM PORTS OF D R Y GOODS— RECEIPTS OF CUSTOMS.

W e have piepared the following review o f the Trade and Commerce of NewY ork, for 1864, giving also, for comparison, the figures for previous years :
MOVEMENTS OF DOMESTIC PRODUCE.

The table we give below, showing the receipts of domestic produce, exhibits
the same features as last year— a falling off in most cereals, oats in fact being
about the only exception. In 1863 the arrivals of oats doubled in quantity, and
again, this year, there is a farther increase of nearly two million bushels, while
the receipts of Indian corn have fallen off from 20,725,166 bushels in 1861 to
7,164,895 in 1864. N or has this been made up in meat provisions, a3 might
have been, and was by many, expected.
The table of exports, which will be studied with even greater interest, shows
still less encouraging results. Our wheat aud corn exports, in 1861, compare as
follows with 1864 :
Wheat, bush, exported...........................................
“
flour, bbls. “
.........................................
Com, bush.
“ ............................................

3861.

1864.

28,889,914
8,110,646
12,456,265

18,193,438
1,918,598
846,881

To the table of exports, however, should be added Petroleum, of which
34,792,972 gallons have been shipped from the United States, the past year,
against 28,250,721 gallons in 1863, as will appear from the review of the trade
given in another part of this article. The following are the receipts and exports
of domestic produce referred to above:
R E C E IP T S O F C E R T A IN A R T IC L E S O F D O M E S T IO P R O D U C E A T T H E P O R T O F N E W Y O R K
FO R FOUR YEARS.

1801.

1862.

A sh es................................. bbls.
breadstuff's—

19,983

19,287

17,181

15,778

Wheat flour..........................

4,968,971

5,384,872

4,574,059

8,967,717




1863.

1864.

118

Trade and Commerce o f the P ort o f N ew York.
1861.

Corn meal.................
W h e a t.....................
E y e ...........................
Oats
....................
Barley.......................
Peas...........................
C o rn .........................
Cotton......................... .. ...b a le s
Naval stores—
Crude Turpentine...
Spirits turpentine . .
Rosin..........................
Tar.............................
Pitch..........................
Provisions—
Pork..........................
B e e t..........................
Cut meats.................
Butter........................
Cheese.......................
Lard..................tcs, and bbls.
L a r d ............... .........
"Whisky.........................

98,519
28,429,135
775,665
4,852,009
1,854,801
310,898
20,725,166
243,122
32,254
46,097
198,772
49,506
2,367
138,770
119,028
105,835
589,234
988,718
126,942
60,o05
311,019

1862.

251,319
29,280,629
967,729
5,485,016
1,865,615
211,140
18,548,799
103,585

1863.

1864.

252,729
17,937,856
439,567
11,076,035
2,143,485
267,490
14,243,599
129,611

267,759
13,453 135
491,915
12,952,238
2,544,891
281,562
7,164,895
190,911

3,547
4,603
11,187
11,795
1,087

6,760
4,139
19,128
6,964
3,000

426,981
206,519
463,995
518,537
79S.070
400,928
41 144
261,814

332,454
209,664
268,417
551,153
756,872
186,000
16,104
2S9.481

3,404
8,950
38,978
7,345
2,938 .
877,819
276,846
329,265
668,842
853,655
897,481
89,838
364,791

E X F O R T S F R O M N E W Y O R K T O F O R E IG N P O R T S O F C E R T A IN

[February,

L E A D IN G

A R T IC L E S O F D O M E S TIC

PRODUCE FOR FOUR Y E A R S.

Ashes— p o ts ................... ..bbls.
Ashes— pearls........... .
Beeswax...........................
Breadstuffs—
W heat flo u r............... ..bbls.
Rye flour.....................
Corn meal...................
W heat.........................
Eye ............................
O a ts.............................
Barley..........................
Peas.............................
Corn ..........................
Candles............................
C otton .............................. .bales
H ay..................................
Naval Stores—
Crude turpentine. . . . ..bbls.
Spirits turpentine . . .
Tar ..............................
OUb— whale..................... •Ralls.
Oils— sperm.....................
Oils—linseed....................
Provisions—
P o r k ............... .............. ..bbls.
Beef ............................
B e e f ............................
Cut meats.....................




1861.
13,6C8
8,507
238,553

1862.
9,603
1,580
122,349

1863.
9,146
1,264
170,230

1864.
8,847
1,593
465,667

3,110,646
11,807
108,385
28,889,914
1,000,405
160,825
3,927
139,284
12,456,265
93,315
36,536
152,562
15,776
28,377

2,961,618
8,397
132,606
25,564,755
1,104,549
210,669
42,061
113,819
12,020,848
138,595
80,884
24,400
48,674
33,409

2,527,338
5,461
140,561
15,424,889
416,369
126,556
62,439
110,911
7,533,431
125,587
53,713
13,945
19,986
25,409

1,918,593
2,840
105,142
12,193,433
588
42,135
150
186,154
846,831
121,742
53,417
26,765
40,325
22,077

21,571
18,825
208,061
•26,646
3,080
1,196,468
1,030,328
110,401
85,626

17
788
18,200
4,601
906
1,554,359
756,173
710,885
35,640

22
884
4,172
8,184
l,6fi4
269,634
510,648
803,469
17,344

770
433
2,207
1,771
2,955
421,931
1,866,159
129,529
79,244

116,654
171,302
192 903
29,013
32,977
41,632
33,924
27,765
62,868
60,565,732 145,102,758 183,519,060

130,672
36,548
49,299
93,800,258

1 8 6 5 .]

119

Trade and Commerce o f the P o r t o f N ew York.

Butter...........................
Cheese..........................
Lard..............................
Rice....................................
Rice....................................
1 allow ...............................
Tobacco—crude.............. pkgs.
Tobacco— manufactured. ..lbs.
Whalebone........................

1861.
1*62.
1863.
23,159,391
30,603,235
23,060,799
40,041,226 39,200,439 40,781,168
47,290,409 126,661,091 120,881,862
701
182
15,867
12,143
12,044
15,527
25,820,335 43,866,920 43,487,731
116,598
113,575
107,439
8,152,484
1,598,044
3,542,210
975,075
259,185
1,191,907

1864.
14,174,861
49,755,842
53,436,128
4
20,673
31,987,976
161,404
5,250,014
609,646

EXPOETS OP DOMESTIC COTTON.

The following table giving the exports of domestic cottODS for the year, with
the destination of the various shipments, will be found very useful. A t the close
we have added the total clearances from Boston to foreign ports during the
same period. It will be seen that the exports for the last year have been very
small. This of course must continue so long as prices are so high. More than
two-thirds of the shipments for the year have gone to M exico:
E X P O U T S O F D O M E S T IC C O TTO N S F R O M T E E P O R T OF N E W Y O R K TO F O R E IG N P O R T S .

Mexico......................... pkgs.
Dutch Wept Indies.............
Swedish West Indies.........
Danish West Indies............
British West Indies...........
Spanish West In dies.........
St. Domingo.........................
British North A m e r ic a ....
New Granada......................
Brazil....................................
Venezuela.............................
Argentine Republic............
Cisplatine Republic............
Central A m e rica ...............
West Coast South America
H onduras...........................
A frica ..................................
Australia..............................
East Indies and China.. . .
A ll others............................
Total............................
“ from Boston.. . .

1859.
2,475
531
..
696
227
366
977
78
967
3,837
919
903
.•
55
6,806
259
323
135
53,663
1,793

I860.
4.S73
664
47
952
497
193
2,196
10
1,381
8,103
1,328
1,111
..
63
13,294
389
1,406
323
47,785
1,792

1861.
2,766
669
38
522
537
374
1,257
60
2,005
5,400
1,4 21
480
..
23
5,299
245
876
180
31,911
1,823

1802.
2,427
84
..
316
165
140
484
23
609
953
141
145
•.
1
1
12
49
8
137
47

1863.
1,886
9

1864,

29
149
66
63
16
350
86
32
13
19
l

1
24
86
12

74,549
32,661

86,318
33,588

65,736
18,146

6,977
4,238

849
2

5
11

83
4
9
2
8
6
2
4
24

5
30

7
8

2,776
422

1,132
264

PETROLEUM.

Notwithstanding the Petroleum interest has apparently attracted a very large
amount of capital during the past year, still the quantity produced has not in­
creased. For instance the total amount taken for consumption at Nevv York,
and exported from New York, Boston, &c., during 1863 and 1864, was as fol­
lows :
Exported from New Y o r k ............................ .........bbls.
Taken for consumption in New Y ork.........
Total— New Y ork.................................




1863.
488,690
814,481

1864.
533,394
242,187

803,171

775,587

120

Trade and Commerce o f the P ort o f N ew York.

Boston— exported
Philadelphia “
Baltimore
“
Portland
“
Total............................................................................

[Febiuarv,

51,235
134,893
22,896
8,552

42,807
194,003
23,249
1,769

1,020,747

1,086,915

W e thus see no material change. There are several reasons for this. In the
first place it should be remembered that the increase of capital, the past year,
actually employed in producing Petroleum, is not so great as at first sight might
be supposed. Very many companies, to be sure, have been formed, and of large
nominal capital, but very few of them have their stock all taken up, and much
of the money that has been paid in, has been given to those organizing the com­
panies for the laud they have purchased, while another large portion of it is paid
out in commissions. But, besides this, very little of the land upon which the
new companies are based has, as yet, been developed. It requires time to accom­
plish much in that way. The coming year, however, must show the effect o f
these new investments. Thus far, production has not kept pace with the
growing demand, and prices, therefore, have ruled high.
The following table, from the Shipping List, shows the exports o f Petroleum
during the past three years :
S X I ’ O U T O F C R U D E A N D R E F I N E D (IN C L U D IN G N A P T H A , E T C .), F R O M N E W Y O R K . F O R T H E
y ears

1864, 1863

an d

1262.
1864.

To Liverpool.................
London ...........................
Glasgow, &c....................
Bri-tol..............................
Falmouth, E ...................
Grangemouth, E.............
Cork, <kc..........................
Bowling, E......................
Havre..............................
Marseilles.........................
Oettee...............................
D unkirk..........................
Dieppe ............................
Rouen ..............................
Antwerp.........................
Bremen............................
Am sterdam ...................
Hamburg .....................
Rotterdam.......................
Gottenburg.....................
Groustadt........................
Cadiz and Malaga.........
Tarragona and Alicante
Barcelona.........................
Gibraltar .........................
Oporto..............................
Palerm o.........................
Genoa and Leghorn.. . .
T rieste...........................
Alexandria, Egypt.........
Lisbon.............................




Gallons.
734,765
1,430,710
368.402
29,124
316.402
3,310,362
87,164
2,324,017
1,982,075
4,800
232,808
79,581
4,149,821
971,905
77,041
1,186,080
532,926
33,813
400,376
58.474
16,823
25,500
89,181
17.474
7,983
679,603
165,175
4,000
167,195

1863.

Gallons.
2,166,851
2,576,381
414,943
71,912
626,176
425,334
1,532,267
1,774.890
1,167,893

46.000
143,646
2,692,974
903,004
436
1,486,155
757,219

1862.
Gallons.

1,781,377.
1,133,399
24,181

299,356
195
791,221
135,765
200
2,700
61,692
823,090
452,622
229,384
16,938
81,960

88,060
33,284
33.000
808,450
2,239
67,115
899,674
3,000
64,662

167
3,990

21,000

1865.]

i

Canary Islands..............................
Madeira...........................................
Bilboa............................................
China and East In d ie s...............
Africa ...........................................
Australia......................................
Otago, N. Z ...................................
Sydney, N. S. W . . . ...................
B razil............................................
Mexico............................................
C u ba .......................... ..............
Argentine Republic.....................
Cisplatine Republic.....................
Chile..............................................
P e r u ..............................................
British Honduras.............. ..........
British Guiana.............................
British West Indies.....................
British North America Colonies.
Danish West Indies .................
Dutch West Indies . . . . ...........
French West Indies.....................
H a y ti............................................
Central Am erica..........................
Venezuela.................... .................
New Grenada...............................
Porto R ico....................................

1804.

1868.

Gallons.

Gallons.

1802.
Gallons

6,125
490

8,868
—

Total.

121

P o r t o f N ew Y ork.

1,295
430

2,600
34,838
26,195
377,384
10,810
97,880
149,676
112,986
418,034
20,260
78,552
92,550
169,061
6,072
7,881
70,976
28,902
8,463
26,638
16,020
7,088
993
28,583
57,490
20,026

36,942
12,230
304,165
6,500
48,013
160,152
69,481
356,436
24,470
117,626
66,550
256,407
440
15,104
60,981
16,995
31,503
12,148
9,104
12,064
456
16,455
107,837
59,439

3,970
655
233,622
7,850
113,750
64,967
18,616
213,680
7,390
13,217
17,898
56,011

21,335,784

19,547,604

6,720,213

1863

and

—

______

—

9,396
18,888
2,943
4,102
7,117
2,382
4,856
1,764
1,094
37.058
25,244

1862.

New Y ork,............................... gallons
B oston ...................................................
Philadelphia........................................
Baltimore...............................................
Portland........................................ ..

1864.
21,335,784
1,696,807
7,760,148
929,971
70,762

1863.
19,547,604
2,049,431
6,395,738
915,666
342,082

1862.
6.720,278
1,071,100
2,800,972
174,830
120,250

Total export from the United States..

81,792,972

28,250,721

10,387,701

From
From
From
From
From

There was also exported, from Cleveland direct to Liverpool, 80,000 gallons re­
fined.
WHOLESALE PRICES OP FOREIGN AND DOMESTIC PRODUCE AT NEW YORE.

W e also present our annual comparative statement of the wholesale prices at
this port of the leading articles of foreign and domestic produce. There are few,
even of those who are engaged in the trade, who can remember the changes in
price from year to year, and this table will, therefore, be found yery useful for
reference.
W e give the prices, January 3d, of each of the last six years:
Ashes, pots...............100 lbs.
Pearls.................................
Breadstuff's—
Wheat flour, State .. .bbl.
Wheat, best extra Genesee
VOL. U I .— NO. I I .




1860.
$5 12J
6 374
4 30

7 50

1861.
$5 00
5 00

1862.
$6 25
6 25

1863.
$8 50
8 25

1864.
i s 50
9 75

$11 75
13 00

5 35
7 50
8

5 60
7 60

6 05
8 75

7 00
11 00

10 00
12 00

1865.

12 2

[Febiuary,

Trade and Commerce o f the P ort o f N ew York.
I 860.

Rye flour,
“
Corn meal, Jersey. . ,
Wheat, white G en ..,■bush
White Michigan . . . ,
White O h io..............
White Southern.. . .
Red Western............
Chicago Spriug.. . . ,
Rye, Northern.......... bush.
Oats, State...............
Corn, old W estern..
Corn, new Southern.
Cotton, mid. upland .. . . . l b .
Mid. New Orleans..
Fish, dry c o d ...............
Fruit, bunch raisins.. .
Currants................. . . .lb.
Hay, shipping.........100 lbs.
Hops ...........................
Iron, Scotch pig...........
English b a r s ...........
Laths........................... per M.
Lead, Spanish.............
Galena.....................
Leather, hemlock, sole . . .l b .
Oak............................
Lime, com. Rockland.. . .bbl.
Liquors, brandy, coguac..gal.
.Domestic whisky...............
Molasses, New Orleans, .gal.
Naval stores, crude turp.bbl.
Spirits turpentine . . . .gal.
Common rosin, N. C. ..bbl.
Oils, crude, w h a le ...........gal.
Crude, sperm.....................
Linseed................................
Provisions—
Pork, old m e ss...........bbl.
Pork, old p rim e ...............
Beef, city mess.................
Beef, repacked Chicago..
Beef hams, extra...............
Hams, pickled............... lb.
Shoulders, p ick le d ...........
Lard................................. ..
Butter, Ohio.......................
Butter, State.....................
Butter, Orange County.. .
C heese................................
Rice, good.............100 lbs.
Salt, Liverpool, ground. sack
Liverpool, fine, Ashton’s..
Seeds, clover..................... lb.
Sugar, Cuba, good.................
Tallow.....................................
Whalebone, polar..................
Wool, common fleece...........

4
3
1
1
1
1
1

00
90
50
50
45
45
30

• •••

92
46*
90
80
11
Hf
4 50
2 52
6
1 00
16
24 50
63 00
2 00
5 65
5 77*
80
30
75
3 26
26
58
8 48}
-I-) *
1 65
52
1 40
57

1861.
4 00
3 16
1 45
1 45
1 45
1 45
1 38
1 18
75
87
72
72*
12*
12*
3 50
1 75
4*
90
25
21 00
52 00
1 30
5 25
5 50
10*
27
75
2 00
19*
37
2 75
35
1 25
51
1 40
50

1862.
1863.
8 87*
5 45
4 00
8 00
1 50
1 60
1 50
1 53
1 48
1 53
. ,,••
1 52
1 42
1 48
1 83
1 30
83
96 ’
42
71
64
82
68
86
35*
68*
36
68
4 50
3 60
3 50
8 20
9 13 a 13*
85
77*
20
23
23 00
33 50
57 00
77 50
1 25
1 45
8 00
7 00
8 00
7 12*
20*
27
28
33
65
85
4 00
5 25
20*
39
55
53
,.
10 00
1 47*
2 60
6 00
10 50
48
83
1 40
1 75
86
1 27

12 00
87* 16 00
8 60
10 50
75
6 00
6 60
00
11 00
9 00
50
U 00
14 50
60
8
6
9*
4*
6*
6*
10*
10*
8*
14
16
15
18
20
19
22
24
22
10
11
7
4 00
4 20
7 00
65
86
1 15
1 60
1 95
1 70
8*
8*
V*
7J
6*
8*
10*
9*
n
88
90
76
40
30
50

16
11
9
9
14

1864.
6 65
5 65
1 80
1 83
1 83

.,

i ’ 57
i 48
l 30
93
l 30

.,...
82
..

6 75
4 00
15
1 45
33
45 00
90 00
1 50
10 50
10 50
30
42
1 35

#.

94
70

.,

2
30
1
1
1

95
00
10
60
47

1865.
9 00
8 80
2 60
2 70
2 60
2 75
2 45
2 22
1 75
1 06
1 90

.... ■

1
1
9
5
1
63
190
2
15
16
1

20
21
00
85
21
55
40
00
00
40
00
00
42
52
15

. ...

o 24
1 43

,

2
28
1
2
1

io
00
48
13
50

50
19 50
43 00
36 25
60
14 50
00
14 00
20 50
00
23 00
15 00
60
18 80
27 00
20
11
8
5*
8*
18
23
10
13
45
22
24
65
22
29
63
25
32
20
12
15*
8 75
10 00
13 00
1 25
1 85
2 27
2 15
2 80
4 75
27
10*
124
19
12
10
18
12
10*
1 65
2 25
1 60
95
75
60

14
12
12
13
15

The rise in prices, as compared with last year, extends to every article upon
the list, except some productions of the Southern States, and is very strongly




18 0 5 .]

Trade and Commerce o f the P ort o f N ew York,

123

marked with regard to all articles of food. I f we make the comparison with
the year 1860, there will be found to be a rise of about oue hundred and fifty
per cent.
IMPORTS OP MERCHANDISE OTHER THAN DRY GOODS.

The following is our usual table showing the quantities and values (invoiced
specie values) of foreign imports (other than dry goods and specie) the past
year. The figures lor 1862 and 1863 may be found in volume 50, page 136 :—
F O R E IG N I M P O R T S A T N E W

YORK

FOR

1864.

[The quantity is given in packages when not otherwise specified.]
Value.
Quantity.
Alabaster ornaments
$6,914
459
Baskets....................
7,969
116,485
..
B a g s .........................
179,422
Boxes........................
22,968
12
Bricks........................
4,452
Buttons.....................
415,863
1,649
Building stone........
17,496
3
Burr stones...............
17,773
C la y .........................
..
51,633
C h eese.....................
1,728
59,207
China, Glass and Earthenware
,,
Bottles..................
24,856
C h ina...................
348,737
6,509
Earthenware . . . . 37,341
1,205,473
Glass..................... 191,462
382,109
Glassware.............
181,540
9,647
Glassplate............. 8,224
425^624
..
G raphite..............
834
Cigars.......................
..
788,237
Coal................... tons 245.361
698,268
C ork s.......................
230,159
Chronographs .........
2
837
Cotton..............bales 76,085 11,157,449
Clocks.......................
116
14,107
Cocoa...............bags
155,966
8,103
Coffee............... bags 764,983
14,543,955
Drugs, &c.—
2,401
14,107
Alkali...................
563
8J598
Aloes ...................
7,493
72
A lu m ...................
382
8,077
Aluminous cak e..
90
4,279
Ammonia ca rb .. .
9
881
A m m on ia ...........
46,645
847
Ammonia s a l.. . .
235
19,697
Ammonia sulph..
61
5,127
A nnatto...............
2,040
17,755
.,
Aniline colors.. . .
137,238
Arrow root...........
1,062
12,464
Asphaltum...........
189
2,976
A r g o ls .................
1,645
220,386
.,
Assafcetida...........
4,134
Arsenic.................
214
2,811
Bark, Peruvian...
6,288
267,525
Balsam Tolu . . . .
421
3,197
Bismuth...............
22
12,578
Blea powders. . . . 29,271
433,090




Quantity.
Brim stone...........
7,946
Barytes.................
110
Castor o il.............
550
Cam phor.............
4,377
Camomile.............
Cantharides..........
10
Cardamoms..........
Carmine................
12
Chalk....................
22
Cream tartar.___
674
Chiecory...............
5,555
Cochineal..............
1,430
Cubebs..................
333
Cudbear................
1,117
Cutch....................
711
Divi D ivi..............
Dye stuffs.............
Flor sulphur.........
..
Gentian root . . . .
G am bier.............. 80,906
Gum arabic..........
4,503
Gum crude...........
9,422
Gum copaiva.. . .
1,369
Gum coroni..........
4 611
Gum c o p a l .........
303
Gum gedda..........
50
Gum tra’canth.. .
38
Glue.....................
4
Indigo...................
4,056
Iodine...................
106
Iodine p o t ...........
181
Ipecac...................
162
,.
Insect pow d er...
..
Isinglass................
J a la p ...................
90
Lac d y e ...............
340
Leeches ...............
124
Licorice root . . . . 11,37-2
Licorice pa ste.... 11,246
Madder.................
4,516
Magnesia..............
693
Manna.................
121
Morphine.............
Muriate potash...
Nutgalls...............
Nitrate soda . . . .
Nitrate s ilv e r ....

Valne.

224,218
408
6,690
114,818
1,572
5,749
3,419
3,988
1,895
150,487
88,746
243,480.
19,234
91,186,
3,306,
L283;
8,011
1,585
246,244
223,221
198,732
61,667
85,413
4,782
1,174
522
706,806
23,684
2'2,0S8
49,696
2,228
1,183
12,831
15,220
6,761
48,433
863,893
810,066
12,037
8,902
1,427
1,278
1,642
298,904
1,823

124

Trade and Commerce o f the P ort o f N ew York.

Oils, unspec..........
Oil, cod.................
Oil, cocoanut........
Oil, ess..................
...........
Oil,
Oil, olive...............
Oil palm ...............
Oil sperm.............
O piu m .................
Orchilla w e e d .. .
Orange peel........
Paints...................
Paris w h ite .........
Potash bitch........
Persian berries ..
Potash clilo..........
Potash hyd...........
Phosphorus.........
Plumbago.............
Pruss. potash.. . .
Quinine.................
Quicksilver.........
Reg. antimony. . .
Rhubarb...............
Safflow er.............
Safflower e x t .. . .
Saltpetre..............
Sarsaparilla..........
Scammony............
Senna....................
Shellac.................
Soda, bicarb.........
Soda, sal...............
Soda, caustic.. . .
Soda, ash.............
Soda, hyd. sulph.
Sponges................
Sugar of le a d .. •.
Sulph. morphia...
Sutnac.................
V e lo n ia ...............
Tonqua beaus . . .
Ultramarine.........
VaDilla beans.. . .
Verdigris.............
Vermillion............
Worm seed..........
Yellow och re.. . .
Yellow berries.. .
Drugs, unspec... .
E m e ry .....................
Fancy goods.............
Fans..........................
Feathers...................
Fire crackers...........
F ish ..........................
Flax..........................
Flour.........................
Furs, Ac.—
Felting.................
Hatters’ goods. . .




Quantity.
993
81
137
2,277
linseed
1,956
60,069
693
700
557
97
..
..
421
14
..
518
76
415
..
51
440
1,295
1,162
142
15
13
..
1,553
4
25
2,006
68,959
21,552
7,176
26,398
950
672
34,430
83
,,
78
..
530
,.
4,271
,,
..
1,070
..
..
,,
,#
..
2,698
564
1

Value.
89,798
4,275
8,716
170,830
161,128
202,851
38,923
5,740
311,087
16,746
4,327
435,768
1,925
2,286
3,112
17,473
7,577
20,079
97,928
8,090
65,032
134,198
70,947
8,844
4,632
3,744
122,091
35,929
7,203
2,587
87,392
206,323
109,874
151,949
680,056
817
47,468
81,640
1,290
151,087
791
11,070
1,776
29,486
5,320
48,395
4,041
14,634
7,455
217,939
15,202
1,749,028
12,613
284,601
41,847
502,472
115,016
6,074
21,308
746

F u rs ................... .
Fruits—
Bananas . . . . . . .
Currants.............
Dried fruits . . . .
D a tes................. ,

[February,

Value.
Quantity.
2,053,780
4,966

.

Nuts...................
Oranges.............
Pineapples . . . .
Plums.................
Prunes ...............
Raisins...............
Sauces and pres
Grapes................
Furniture...............
158
G ra in .....................
,,
Grindstones...........
Gunny cloth...........
2,342
7,089
Guttapercha...........
Guano.....................
920
Hair..........................
2,686
Hair cloth...........
279
Hemp..................... 113,830
H oney....................
3,752
..
H op s........................
27,742
India rubber...........
Iv o r y .....................
148
Instruments—
Chemical.............
26
Mathematical. . . .
32
Musical.................
1,783
Nautical...............
6
Optical..................
268
Surgical................
30
Jewelry, <fec.—
Jew elry...............
621
Watches...............
798
Leather, Hides, (fee.Boots and shoes..
213
Bristles.................
695
Hides, dressed__
8,504
..
Hides, undressed.
..
H orns...................
Leather, p at.........
66
Liquors, Wines, Ac.A l e ................... ..
6,976
Brandy................. 16,202
B eer.....................
1,752
Cordials................
2,212
Gin.........................
7,018
Porter....................
4,166
Rum......................
1,260
Whisky.................
875
Wine..................... 255,001
Champagne......... 102,744
Metals, Ac.—
Brass goods..........
277
Bronze metal. . . .
••

41,963
70,911
189,772
15,510
8,178
24,462
199,579
637,127
437,043
61,508
60,078
58,196
373,244
168,417
2,440
16,736
155,936
16,004
51,562
47,016
7,218
379,598
131,517
1,583,949
127,798
17,443
1,196,781
37,637
1,948
9,695
229,224
835
95,975
7,575
726,949
1,450,166
25,506
181,812
1,157,663
5,829,387
12,412
34,847
68,445
574,878
14,610
17,192
81,815
35,088
60,958
58,020
1,615,365
656,965
41,471
50,754

I 860.]

Trade and Commerce o f the P ort o f N ew York.

Value.
9,934
531,772
689,048
855.663
1,157.424
4,402
219756
578,094
228,464
803,78S
3,687,970
383,975
148,403
3,427,850
2,682,319
32,595
474,116
57,919
147,335
124,168
892,050
14,079
96,554
64,261
53,383
2,012,197
336,540
9.9.
8,097
T in p la te s __ bxs. 440,635
2,904,646
Tin slabs, lb s .. .2,367,441
556,778
W ire.....................
2,634
49,332
Zinc...............lbs.7,296,435
370,675
Lith. s to n e ...............
..
3.689
Machinery...............
2,222
218,836
.,
L a m p s .....................
2,285
Marble & mfd. do . .
94,269
M atches...................
1,895
67 .
Macaroni................. 11,314
17.346
Molasses................... 117,236
3,496,790
Oil paintings...........
466
209,482
Oakum......................
210
2,455
10,167
Paper hangings.. . .
80,455
813
..
Pearl shells .............
5,342
Perfum ery...............
919
103,756
Personal e ffe c t s ....
21
202,602
Plaster .....................
..
20,709
Pitch .......................
60
560
..
Pipes .......................
208,047
..
Potatoes...................
90,080
Provisions...............
215,289
Rags......................... 27,261
648,054
591,775
R o p e ........................
4 2,137
..
Quartz rock.............
8,750
R o sin ........................
1,767
66,788
S a g o ..........................
335
2.616
Salt............................
448,199
Sh ells.......................
1,501
..
Quantity.
Bronzes...............
34
Chains and A . . .
8,428
Copper.................
Copper ore...........
Cutlery.................
3,025
Gas fixtures.........
48
GU08.....................
3,927
Hardware.............
4,464
Iron, hoop, . . tns 4,197
Iron, pig . . . .tons 50,050
Iron, railroad. bars 679,148
Iron, sheet.. .tons 5,451
Iron tubes............ 47440
Iron, otb........tons 64,022
Lead, pigs........... 474,437
Lead ore...............
4,338
N a ils....................
2,871
N eedles...............
347
Nickel...................
284
Old m e ta l...........
Plated ware.........
47
33
Percussion ca p s ..
302
Sadd lery.............
172
Steel................... 107,946
Spelter.........lbs.7,422,486

125

Value.
Quantity.
145,457
..
Seeds unspec’d . . •
40,817
Castor s e e d ...........
914,447
Linseed ................. . 217,959
150,678
Soap........................ . 58,856
Spices—
12,254
Cassia.................
2,678
Cinnamon...........
78,170
Cloves.................
53,972
G in ger...............
12,140
Mustard.............
78,617
Nutmegs.............
286,394
Pepper...............
39,090
Pim ento.............
Stationery, Ac.—
327,716
Book8 .................
89,309
£92
Engravings.........
236,790
.
8,755
181,640
Other stationery .
1,526
85,074
Statuary................. .
Sugar ,hhds. bbls A tcs208,517 12,988,667
2,950,089
Sugar, boxes A bags 279,627
106,278
T a r .........................
17,824
.
8,209
2,240
40
Teazles...................
24,946
.•
Trees and plants.. .
1,377
Thistles..................
8,172,072
Tea......................... . 604,972
24,842
.
775
427,246
T o y s .......................
626,472
T ob a cco................. . 23,932
2,828
Tom atoes............... .
..
2,481
297
Turpentine..............
294,824
4,118
Turpentine spirits. .
686,808
Waste..................... . 15,879
61,844
Whalebone............. •
••
23,159
W a x ....................... .
Woods—
1,886
Box wood........... •
••
6,406
Brazil w ood .. . . •
••
Camwood........... .
240
•.
211,067
Cedar.................. .
68,148
E b o n y ................ •
..
5,817
1,862
82,332
Fustic.................
Lima wood.........
16,635
Lignumvitae . . .
76
12.836
Logwood............
54,829
330,937
Mahogany......... •
84,356
••
Palm leaf..........
..
79,508
Ratan.................
91,542
R osew ood.........
•a
139,532
Sapan wood. . . .
2,960
8,608
W illow ...............
28,809
Other woods . . .
103,456
Wool, bales.......... 115,724
9,428,409
Other miscellan... .
52,583
Grand total........

We repeat the above values, for 1864, of a few of the leading articles, for




126

Trade and Commerce o f the P o r t o f N ew York.

[February,

the sake of showing the comparative imports during each of the last four
years.
IM P O R T S

OF

A

FEW

L E A D IN G

F O R E IG N

A R T IC L E S O F

PO RT8, FO R

B ooks..............................................
Buttons............................................
Cheese..............................................
Chinaware........................................
Cigars...............................................
Coal..................................................
Coffee ..............................................
Earthenware..................................
Furs.......................... .......................
Glass plate ......................................
India rubber....................................
Indigo...............................................
Leather and dressed skins...........
Undressed skins.............................
Liquors—
Brandy.........................................
Metals—
Copper..........................................
Iron, b a rs....................................
Iron, pigs...................................*
Iron, railroad...............................
Iron, sh eet..................................
Lead.............................................
S p elter........................................
Steel.............................................
Tin and tin plates.......................
Zinc..............................................
Molasses...........................................
Rags.................................................
Salt...................................................
Saltpetre........................................
S u gar...............................................
T e a ..................................................
W atches..........................................
W in es..............................................
Wool and waste.............................

THE

GENERAL

M E R C H A N D IS E

AT N E W T O R E , FROM

1861, 1862, 1863, 1864.

TEARS

1861.
$846,219
88,567
56,152
190,511
1,064,228
964,527
11,865,082
587,574
771,889
277,623
705,732
1,449,990
943,355
3,879,271

1862.
$876,601
162,452
60,155
210,968
1,012,162
901,311
8,517,284
881,322
1,436,518
176,512
992,348
2,083,180
1,278,688
5,134,345

1863.
$371,430
176,443
47,957
263,218
608.403
808,456
1,796,635
1,067,477
1,912,166
363.459
1,407,536
713,730
1,087,266
5,966,395

1S64.
$327,716
415,863
59,207
848,737
788,237
693,288
14,543,955
1,205,473
2,053,780
425,524
1,196,781
706,806
1,157,663
5,829,337

514,949

477,213

261,234

574,878

903,966
1,054,718
878,058
898,536
127,631
534,584
30,079
1,125,014
2,334.766
64,403
1,136,094
874,075
511,156
881,370
14,847,000
6,455,408
576,971
739,080
2,380,941

670,478
1,301,010
203,375
500,419
329,461
3,075,313
135.195
1,602,391
4,174,651
228,832
1,562,904
285,926
550,161
336,439
14,727,598
8,676,245
861,710
860,710
6,860,609

574,286
689,048
2,457,575
3,427,850
397,916
808,788
1,484,973
3,687,970
270,576
388,975
1,520,519
2,682,319
204,710
336,540
2,063,842
2,012,197
3,975,605
3,461,424
228,210
370,675
1,928,598
3,496,790
1,288,431
648,054
373,725
448,199
392,349
122,091
14,584,579 15,938,756
6,796,102
8,172,072
920,522
1,450,166
1,198,283
2,212,330
9,035,557 10,015,217

IMPORTS OF DRY GOODS.

"We also give below the imports of dry goods the past year. These values are
likewise the invoice specie values. To know the cost to the country in our cur­
rency it is necessary to add the freight and duty (payable in gold,) and then
double the whole :
IM P O R T S O F

DRY

GOODS AT N E W

YORK.

Description of goods. I860.
Manufactures—
W ool........... $34,975,011
Cotton.........
18,415,258
Silk.............
35,582,035
F la x ...........
8,952,812
Miscellan. dry
goods . . . . .
6,601,984

1861.

1862.

1863.

1864.

$16,720,931
7,192,524
13,334,411
3,580,803

$25,718,592
8,501,512
11,568,807
7,666,946

$29,703,956
7,913,957
16,534,469
10,381,059

$31,411,985
8,405,246
16,194,080
11,621,831

2,808,520

2,665,370

3,731,106

8,956,6S0

Total imports. $103,927,100

$43,636,689

$56,121,227

$67,274,547

$71,589,752




I

860.]

Trade and Commerce o f the P o r t o f N ew York.

127

W e annex a summary of the imports of dry goods, by months, in each of the
last five years :
T O T A L IM P O R T S O F D R V

Months.
January.. . .
February. . .
March..........
A pril...........
M ay.............
J u n e ...........
Ju ly.............
A u gust__ _
September .
Octohpr . . . .
November . .
December...

1860.

13,880,683
9,022,403

14,989,044
6,740,185
5,327,907
6,797,556
7,709,721

Total . . . .

GOODS

AT

NEW

YORE.

1861.
$10,956 857
6,782,936
5,886,076
2,767,645
2,489,823
1,205,382
1,476,887
8,536,333
2,102,064
1,971,541
2,506,926
2,004,219

18G2.

1863.

$2,965,952
5,344,514
6,471,901
3,296,498
2,944,483
3,535,102
5,628,014
8,707,710
6,185,193
3.865,798
3,710,857
3,466,405

$5,269,181
5.027,857
9,204,581
4,884,007
3,612,511
2,901,423
4,713,365
8,316,878
6,892,712
6,509.783
6,071,208
5,371,041

1864.
$8,184,314
9,437,454
12,635,127
5,220,245
6.081,136
4,801,703
6,762,750
7,529,800
4,147,449
2,996,100
2,285,107
1,558,567

$43,636,689

$56,121,227

$67,274,547

$71,689,752

The imports of dry goods for each year since 1849, may be seen by the fol­
lowing table:
OF F O R E IG N

1849
1850
1851
1852
1853
1854

.
.
.
.
.
.

$44,435,575
60,106,371
62,846,731
61,654,144
93,704,211
80,842,936

DRY

GOODS A T

NEW

YORK.

Invoiced value.

1855
1856
1857
1858
1859
1860

R E C E IP T S

.
$64,974,062 1861
.
93,362,893 1862
.
99,534,129 1863
.
60,154,509 1864
....
113,152,624
....
103,927,100
O F CU STOM S A T N E W

Invoiced value.

.
.
.

IM P O R T S

Invoiced value.

.

$43,636,689
66,121,227
67,274,547
71,589,752

YORK.

The revenue at the port for 1864 shows a gain of about eight millions over
the corresponding figures for the previous year. The following is a comparative
summary :
1861.
186*2.
1863.
1860.
Jan . . . $3,899,166 17 $2,059,202 33 $3,351,657 22 $4,127,906 82
3,378,043 28 2,628,736 83 3,565,063 83 3,590,713 97
Feb . . .
March.. 3,477,545 74 2,489,026 25 4,626,862 86 4,554,460 13
A p r il.. 2,444,267 96 1,643,261 99 4,149,952 86 3,957,197 57
979,145 14 4,704,914 62 3,873,865 42
2,466,462 76
M ay. . .
885,062 41 4,664,927 19 3,738,934 06
June . . 2,024,193 39
J u ly .... 4,504,066' 04 2,069,590 86 7,211,817 68 4,912,718 49
August. 4,496,243 10 1,558,824 11 4,762,581 54 6,206,735 58
Sept . . 3,038,803 28 1,642,382 43 5,239,045 50 7,270,543 65
Oct. . . 2,632,078 38 1,672,616 84 4,309,419 87 6,238,943 46
1,794,748 67 1,851,384 73 3,003,270 23 6,075,846 24
N ov. . .
1,171,862 74 2,334,847 38 2,664,593 82 6,248,189 03
Dec . . .

1864.
$6,180,536
7,474,027
7,669,770
13,982,555
3,855,186
3,311,148
3,585,848
6,237,364
4,084,492
3,670,188
3,455,166
3,440,852

T otal.. 36,027,481 51 21,714,981 30 52,254,116 72 58,886,054 42

66,937,127 71

09
93
47
60
46
43
44
17
64
38
53
67

W e would refer our readers to the Commercial Chronicle and Review of last
month for the movements in specie, prices of United States paper and of gold,
and the rates of exchange for the year 1864. Those tables, together with the
foregoing, will afford a complete summary of the commercial movements at the
port of New York the past twelve months. The official returns showing the total
imports and exports have not yet been made up. We give, however, the figures
for the first nine mouths in the Commercial Chronicle and Review of this month •




128

Journal o f Banking, Currency, and Finance.

[February,

JOURNAL OF BANKING, CURRENCY, AND FINANCE.

CONVERSION OF STATE BA N E S IN T O N ATION AL— FURTHER OPPOSITION TO NATIONAL BANKS USELESS
— SHOULD BE ADM ITTED INTO THE CLEARING-HOUSE— CIRCULATION AND CONDITION OF BAN KS OF
TH E TH R E E CITIES A T END OF THE T E A R — B A N K S OF THE S TATE OF MAINE.

W e referred in previous numbers to the inevitable conversion of the great
majority o f the State Banks into National Banks, and this process is now going
rapidly on. The official reports of Massachusetts show that of 181 Banks in
this State, 52 have become national associations, 47 more have filed papers, and
the remainder are looking forward to change, while 25 new ones have been started.
In New York the same process is being developed, and an act has been intro­
duced in the Legislature to authorize and facilitate the conversion. The desire
for change seems to seize the stockholders strongest where the existing Banks
hold the most gold and have the most surplus. These two items to be divided
up, hold out a tempting bonus, and in many cases will allow the stockholder his
shares in the new institutions as profits. These shares in the new Banks, how­
ever, will probably not be very valuable, since all cannot have the Government
deposits, or do a large business in loaning to the Government, and general busi­
ness is by far too much reduced from the old credit system to allow a large share
to multiplied Banks. It is also the case that many of the old Banks are large
holders of Government stocks, bought with their depositors’ money, and which, in
case the latter should demand it, they would find it difficult to pay off under the
State system. Under the national system, however, they can deposit the stock
with the Compti oiler, and obtain as many notes as will pay the depositors with­
out disturbing their investments. It is true these national notes are not legal
tender generally, but are so between the public and the Government, and, as at
present, almost all business is done with the Government, that faculty will suf­
fice. The Banks are not required to pay specie in any event, and there will
therefore be no incentive to require the notes to be paid in legal tender. These
considerations are the leading ones in bringing about the change that is being
made, and it is very apparent that it is only another stage on the road to insol­
vency. The New York Bank Superintendent in his report states in relation
to the national law, “ its essential features are,” as he expresses it, “ transcrips
from the banking laws of New Y ork applied to a wider theatre of operations.”
This seems to be a strange misconstruction of the law. The constitution of
the State of New York, (art. viii., sec. 5,) declares that—
“ The Legislature shall have no power to pass any law sanctioning in any manner,
directly or indirectly, the suspension of specie payments by any person, association,
or corporation issuing bank notes of any description.”

Under this provision the Banks are required to deposit New Y ork State stocks
to an amount which will always bring sufficient to pay the notes issued in specie.
The national law requires only that the notes shall be paid in paper. When a
Bank obtains notes on pledge of stock, and fails, the New Y ork law requires
the stock to be sold for specie, with which the notes shall be redeemed. The




18 6 5 .]

Journal o f Banking, Currency, and Finance.

129

United States law only requires the stock to be sold for the dishonored notes
themselves. The Comptroller has, however, a clear sense of the evils at hand.
He remarks :
“ The system has in some measure the attraction o f novelty, and is buoyed up by
the gratuitous bestowment o f currency, the receipt and payment of these notes in all
governmental operations, and the prospect of deposits by the collectors and disbursers
of public revenue. Few seems to take cognizance o f the fact that it comes into exis­
tence on a wave of public expenditure such as has never been witnessed in this, and,
with a single exception, in no other country; that it is floated upon an ocean of irre­
deemable paper, whose ebb and flow no human intellect can regulate, or whose cur­
rents and quicksands no intelligence can fully determine. Without waiting for the
return of the business of the country to its normal condition—ignoring the lessons
taught by the great revulsion which followed the war of 1812-15, and which has
crowned every inordinate expansion of paper credit—our people, having arrived at
the conclusion that the congressional system of banking promises profitable results,
rush into it with all the impetuosity inherent in our national character.”

Some of the best of the State institutions will not adopt the new system, and
the public will one day see the wisdom o f their course, and thank them for it.
Often have we stated in these pages the perils that attend this new banking ex­
periment. N ot a word would we now change. W e firmly believe that the re­
sult will be a disasterous failure, and yet we cannot conceive that any good will
be accomplished by further opposing it. Let it now be tried without opposition
from any quarter. From time to time we shall notice its defects, especially as
they are more clearly developed, and hope to see them modified. The right to
flood the country with their circulation, at the present time, will, we trust, be
taken away from them and from the State institutions; then let them run their
course. There is much discussion just now about their being admitted into the
New Y ork Clearing-house. This would necessitate a change in its constitution,
but should not, in our opinion, be delayed. Let every applicant stand on its own
merits, and, if on examination of its affairs it be found a safe associate, let it be
admitted. There are objections to this course to be sure; but we must come to
it sooner or later— so why longer hold out?
With the conversion o f the State Banks into National Banks, it will be borne
iu mind that the State stocks held will be sold. Nearly all the New York debt
is held by the Banks, and will be put upon the market. The New York State
Bank capital has been reduced $1,951,199 in the past year, and the circulation
as follows:
The total number of circulating notes issued and outstanding on the
30th of September, 18ti3, was.................................................................
On the 80th of September, 1864, it w a s ..................................................

$42,192,645
40,113,635

Decrease of circulation within the year.............................................

$2,074,010

The circulation o f the National Banks has considerably increased the out­
standing amount of notes. The weekly returns will show the general movement
of all the Banks. The loans have fluctuated with the movements of the Govern­
ment transactions, and the specie has generally declined to the amount owned by
the Banks, which has been about $20,000,000 since July. Latterly, however,
many of the Banks have begun to dispose of their specie, while the Bank of
New York, (having become a common depository for the gold dealers,) has to




130

[February,

Journal o f Banking, Currency, and Finance.

some extent, increased the amount it holds. The deposits of the Banks were at
their lowest point in January last year, when money was very dear and the
Treasury had not begun to issue its new legal tender notes; after that event the
deposits rose to over $174,000,000 in June, and subsequently fell to $144,000,000
in September. They are now low, under a state of affairs, as connected with
the Treasury, similar to that of last year. W e are compelled to omit the pre­
vious returns for the year ; but they will be found in the January number :
NEW

N ew Y
Date.

ork

D ec.
Jan.
it
“

H

B an ks.

2 4 ,..
3 1 ,..
v ...
1 4 ...
2 1 ,..
2 8 ,..

TOEK

BANKS.

{Capital, Jan., 1864, $---------------; Jan., 1865, $69,658,737.)

Loans.
Clearings.
Specie.
Circulation. N et Deposits.
$203,5 1 2 ,0 93 $20,600,441 $ 3,383,346 $ 15 3 ,8 0 5 ,9 0 9 $ 59 3,336,187
471,03 9 .2 5 3
199,444,969
19,662,211
3,283.832
147,442,071
195,044,687
635,055,671
20,152,892
3,183,526
14 7,821,891
5 38 ,780,682
189,686,750 21,357,608
3,074,029
148,931,299
611.19 4 ,9 0 7
187,060,586
20,211,569 2,979,851
146,068,355
656,828,378
169,502,630
18,174,316
2,906,194 143,842,280

The returns of the Philadelphia Banks show a line of loans $10,000,000 higher
than in January last year. The increase has taken place mostly since their
determination to merge into the new law. The specie also declined from
$4,153,000 to $1,803,000, that not being requisite. The deposits of the new
Banks have greatly increased since their adhesion to the national system. The
returns are as follows :
P H IL A D E L P H IA

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

Dec. 1 7 ,...
“ 2 4 ,...
“ 3 1 ,...

Loans.

BANKS.

{Capital, Jan., 1868, $11,740,080; 1862,$13,318,880.)
S p ecie.

C ircu la tion .

D ep o sits.

Dne
to bonks,

Due
from banks.

$46,460,087 $1,943,143 $2,371,579 $39,168,5S0 .......................................
47,406,491
1,880,635 ‘2,516,063 39,663,010 .................................... ..
48,059,403
1,803,583 2,793,468 89,845,963 $7,462,222 $8,786,563

The returns of the Boston Banks show the most remarkable fluctuation. There
has been a steady contraction since the beginning of the year, under prepara­
tions for merging in the new law. The results of the State Banks are as follows :
BOSTON BANKS.
B oston B a n k s .
Date.

{Capital, Jan., 1863, $38,231,700 ; Jan., 1865, $22,350,000.)

Loans.

Specie.

Circulation.

D eposits.

Due
to banks.

Due
from banks.

Dec. 17... $45,092,121 $3,601,228 $7,397,227 $23,124,821 $5,470,000 $11,306,500
“ 2 4 ,.. 45,746,230 8,936,311 7,731,981 23,222,391 6,470,000 11,431,291
“ 3 1 ,.. 46,312,700 8,434,300 7,767,000 23,086,800 6,689,000 11,452,800

The State Banks of Maine report as follows their'business for the years 18C3
and 1864:
l ia b il it ie s .

Capital................................................
Circulation
..................................
Deposits ........
Bank balances'! ................................
P ro fits ..................................................
Immediate liabilities.........................




1863.
$8,008,000
6,019,156
6,421,005
118,020
759,859
2,558,181

1864.
$6,785,000
7,042,093
6,120,762
268,042
965,666
12,430,897

dec. $1,222,400
inc.
1,032,937
dec.
1,310,243
inc.
140,022
inc.
205,707
dec.
127,284

18 05 .]

131

Journal o f Banicing, Currency, and Finance.
RESOURCES.

Loans.............................................
Real estate.....................................
Bills of other banks and checks ..
Bank balances...............................
Specie.............................................
Immediate resources............... .....
Number of banks...........................
Overdue paper...............................
Estimated loss on same...............

1,047,979

$15,167,320
195,222
1,281,413
3,015,961
522,146
4,819,520
50
612,249
95,146

inc.
dec.
inc.
dec.
dec.
dec.
dec.
dec.
dec.

$183,711
50,624
233,434
1,351,601
155.897
1,277,0.14
19
149,243
16,210

The sayings institutions report as follows
In
In
In
In
In

1860 the deposits w e re ....................
1861
“
“
1862
“
“
1863
“
“
1864
“
“

$1,406,457
1,630,370
1.876,165
2,041,476
3,872,975

56
26
IS
41
85

The current of money which set towards Paris and London, on the raising o f the
rate of interest by those institutions, had continued to fill the reservoirs up to
the latest dates, and had been followed by further reductions in the Bank rates.
The leading cause that underlies the money difficulties of the Paris, as well
as the London markets, is the Indian cotton, the value of which, imported into
Great Britain in nine months of the year, has been as follows :
Value................................

1862.
$58,603,825

1863.
$126,293,450

1864.
$205,809,975

This doubling process is going on without any corresponding increase in ex­
ports to meet it. The strain upon silver and gold is, therefore, steadily augment­
ing, and must be felt here, where the supply is reduced, with great force.
In December, this operating cause lost much of its vigor, by reason of accounts
from this side leading to the conviction that, in consequence of the steady march
of events in America, the destruction of the Confederate Government may within
a comparatively short space of time take place, control the disposition to specu­
late in cotton, and prevent the employment of any materially greater sum of
money in its purchase abroad.
This feeling induced a diminished operation in cotton, and less demand for re­
mittances to Asia, and therefore helped to strengthen the Bank. The returns of
which are as follows :
TH E BANK OF ENGLAND R E TU RN S.

Date.

Dec.
“

7 ,...

H,...

Circulation.

Public
Deposits.

Private
Deposits.

Securities.

20,118,116
19,669,832
19,669,007
19,810,455

6,468,544
7,161,719
7,694,616
8,601,125

12,666,764
12,267,474
12,927,807
13,040,643

28,726,674
28,301,608
29,326,027
30,708,083

Coin and
Bullion,
13,840,691
14,122,711
14,307,760
1 4,100,974

Rate of
Discount.
7 p er ct.
6
“
6
“
6
“

The increase of specie in the Banking Department has been steady. The re.
duction of the rate of interest was, however, more rapid in Paris than in London.
Although the Bank of Prance has put down the rate in order to mitigate the
pressure upon Prench merchants, she does not in any degree remit the close scrutiny
upon all kinds of bills or the rigor with which are rejected all such as are likely
to send money out of Prance.




132

Grain Trade o f the Tipper Lakes.

[February,

The influence of the price of money upon the flow of the metals is very marked.
The rate of interest was put up to 8 per cent October 20, and was again lowered
November 30. The effect upon the Bank returns was as follows :
Loans.

Specie.

6 2 1 ,4 5 8 ,2 1 0
564 ,37 0 ,7 9 3

2 5 0 .4 2 8 ,7 8 7
3 27 ,718,612

Reduction........................................
67,087,441
Increase...........................................................................

77,295,075

October 2 0 .................................francs
November 8 0 ................................................

Thus the loans were contracted §>11,000,000, and the specie increased nearly
$16,000,000. A portion of this increase was due to the purchases by the Bank,
said to have been $10,000 000 or 50,000,000 francs, of which a considerable por­
tion was sent hence. This is a system which is, in effect, borrowing in London.
Thus, if the agent of the Messrs. R o t h s c h i l d here draws upon th e London house
at sight, and sells for gold what is shipped to France, it is, in fact, London which
has lent the money to Paris, and, on the maturity of the bills, Paris must pay
London, and she expects to do so when the spring business shall have turned the
current of exchange.
From November 30th the specie continued to accumulate to December 22d,
when it stood at $364,000,000 francs, a rise of 50 per centin 60 days, without
any increase in the loans, which were kept down notwithstanding the low price
of money by the severe rule applied to the paper to be passed. The returns are
as follows :
BANK

December
ii
U
(i

8
15
22
29

OK F R A N C E .

Loans.

Specie.

C irculation.

fr.566,921,058
686,521,733
661,603,376
597,157,830

fr.355,640,697
351 ,66 2 ,0 2 4
3 64 ,008,378
359,969,767

fr.722,291,475
739,383,125
7 21 ,487,475
726,212,275

Deposits. Interest.
fr.l 78,968,028
161,270,492
153,193,515
171,321,867

5
5

4i

The contest which has been some time in progress in relation to the Bank of
Savoy, which claimed the right under its new organization to issue circulating
notes, has been decided against that institution. The exclusive power to issue
notes being confined to the Bank of France.

GRAIN TRADE OF TIIE UPPER LAKES.
T h e grain trade o f the u pper lakes is o f such m agnitude as to ch a llen ge
the attention o f com m ercial men and statesm en, and they w ill be gla d to
obtain, through y o u r pa ges, the leadin g item s o f this trade for the year
1 8 6 4 , ju st passed.

The three leading ports which gather in and export m ost o f the breadstuffs o f the great interior plain that seek a market eastward, are Chicago,
Toledo, and Milwaukee.
The following table, taken from the reports o f the several boards of
trade of the cities named, will be fouud substantially reliable:




1865.]

133

Statistics o f Trade and Commerce.

Eye, bu.
1 ,709,562
110,888
2 8 7 ,4 9 0

1864.
Flour reduced
to wheat, bu.
45,962,741
13,757,116
12,337,697

2 ,1 0 7,89 0

72,047,553

R E C E IP T S O F F L O C K A N D G E A I N A T T H R E E L A K E P O R T S , F O R T H E T E A R

C h ic a g o ...
T o le d o ....
M ilw a u k ee.

Flour, bbls. Wheat, bu.
1 , i 4 1 , 7 91 11,957,196
1,052,479 6,907,243
280 ,87 4 9,120,255
2,475,144 27,2 84 ,6 9 4

Corn, bn.
1 3,623,087
1,035,222
4 73,309
1 6,131,618

Oats, bn.
13,658,941
441 ,41 7
1,051,953
15,147,311

A T T H E S A M E P O R T S T H E R E C E IP T S F O E T H E T E A R

1863

W E R E AS F O L L O W S :

Flonr, bbls. Wheat, bu.
1,474,282 11,1 80 ,8 4 4
T o l e d o ____ 1,126 260 6,194,130
Milwaukee.
428 ,74 7 13,024,323

Corn, bu.
24,4 59 ,5 0 8
1 ,705,096
859,052

Oats, bu.
9 ,1 8 9,52 5
7 33 ,79 6
949 ,57 0

live, bu.
1 ,968,106
62,137
3 6 9 ,01 9

F loor reduced
to wheat, bu.
56,079,903
14,326,459
16,845,699

8,029,289 30,398,797

26,5 28 ,6 5 6

10,822,891

2,399,262

87,252,061

Chicago . . .

From these tables it will be seen that the receipts o f these three ports
the past year, compared with those o f the year 1863, show an aggregate
decrease of 15,203,458 bushels; o f which 10,127,162 are chargeable to
C h icago; 4,507,002 was the loss o f Milwaukee, and 569,294 bushels
the deficit o f Toledo. The deficient and badly ripened corn crop o f the
year 1863, occasioned the chief reduction of receipts at Chicago and
Toledo. The loss o f Milwaukee, it will be seen, was principally in wheat.
The commerce o f Chicago and Toledo, in articles other than breadstuffs,
for the past year, was much in advance o f that o f any other preceding
year.— Yours, &c., J. W . S.

STATISTICS OF TRADE AND COMMERCE.
COMMERCE

BETW EEN

B R A Z IL

AND

UNITED

STATES— TU B

W H A LE

FISHERY FOR 1 8 6 4 — R AILRO AD

AND STEAM BOAT ACCIDENTS— COMMERCE OF UNITED STATES.

COMMERCE BETWEEN BRAZIL AND UNITED STATES.
T he following, prepared for the Merchants' Magazine by L. H. F . D ’A

qu iar ,

Brazilian Consul at New York, will be found particularly valuable in the absence
of the commerce and navigation report. It presents the trade of Brazil with
the United States for the past three years :
EXPORTS

TO B R A Z IL .

Vessels.
.A m e rica n v essels........... ..
.
.F o r e ig n vessels..........................

.A m e rica n vessels..................... ..........
.F o r e ig n ve s s e ls .........................

144

..........
. A m erican vessels..................... ..........
.F o r e ig n v e s s e ls .........................

220
183




Tons.

Value reduced
from greenback
currency.

19,304
46,314

£ 2 9 3 ,8 9 9 1
945,450

65,618
46,441
17,629

1,239,349
753 798
4 7 5 ,99 6

64,070
54,904
7,987

1,129,789
7 4 3 ,0 4 3
166,842

62,891

909 ,88 5

Statistics o f Trade and Commerce.

134

IMrOBTS FROM

[F e b ru a ry ,

B R A Z IL .

Tons.

Value reduced from
gold.

41
282

14,219
66,459

£ 37 4 ,7 1 7
2,684,469

823

80,678

3,059,186

ISO
107

45,9 60
27,149

1,139,496
1,299,734

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

257

78,109

2,439,280

1 8 6 1 - 6 2 . . . .American vessels...........................

. . . .Foreign vessels.............................. .

191
105

65,598
30,376

1,216,786
1,560,225

T o ta l......................................................... .

296

95,974

2 776,961

Vessels
1 8 6 3 - 6 4 . . . . A merican vessels.......................... .
. . . . Foreign vessels............................... .

Total..........................................................
1 8 8 2 - 6 3 . . . .American vessels........................... .
. . . .Foreign vessels............................... .

T o ta l.. . .

,------ -Articles exported.------v
Flour, bbls. l)ry goods, vol.
4 10,862
410,094
376,315

1 8 6 3 -6 4 ........................... - ..........................
1 8 6 2 -6 3 ....................................................... .
1 8 6 1 - 6 2 .................................. ......................

I raports.
Coffee.....................................................bags
H id es......... ......................................... numb.
S u g a r ............................................................... vol.
In d ia r u b b e r ....................... a rrob es o f 321bs.

88
242
6,187

1863-64.

1862-63.

1861-62.

574,182
352,226
76,415
96,623

366,908
3 43 ,28 2
93,947
78,612

667 ,14 6
1 57 ,88 4
97,250
45,602

ANNUAL STATEMENT OF THE WHALE FISHERY FOR 1864.
T he year 1864 has witnessed a further decline in the number o f vessels em­
ployed in the business, and the number now thus employed is less than at any
time within the last twenty-five years, being 276, with an aggregate o f 79,692
tons. The greatest number within the above-named period employed in the
whaling business was in 1846, which was 735, amounting to 233,189 tons. The
present number o f vessels, however, is as large as the business will warrant.

The success of the fleet in the Arctic Ocean in 1863, induced many of those
engaged in sperm whaling, to abandon the latter and try their fortune North,
but with one or two exceptions the change was not successful. The whole num­
ber of American ships that cruised in the A rctic Ocean in 1864, was 63. Of
this number, all but one, the William Gifford, have arrived in at different ports.
These have taken an aggregate of 29,440 bbls. whale oil, and 439,250 lbs. bone
— an average of 475 bbls. oil and 7,084 lbs. bone. Add to these nine foreign
vessels also cruising in the Arctic, which took 4,220 bbls. whale oil and 66,600
lbs. bone, and the whole Arctic fleet numbers 71 ships, with an aggregate catch
of 33,660 bbls. oil and 505,250 lbs. bone, or an average of 474 bbls. oil and
7,116 lbs. bone each.
The Ochctsk fleet consisted of six American and four foreign vessels. All the
American ships but the Hercules have arrived in port, and taking her last report
— 500 bbls.— will give an aggregate catch of 6,050 bbls. oil and 87,800 lbs.
bene, or an average of 1,008 bbls. oil and 14,633 lbs. bone each. The four foreign




1805.]

Statistics o f Trade and Commerce.

135

ships took 3,675 bbls. oil aud 49,000 lbs. bone, or an average of 919 bbls. oil
and 12,250 lbs. bone. These added together make the whole Ochotsk fleet tea
ships, with an aggregate catch of 9,725 bbls. whale oil and 136,800 lbs. bone,
averaging 972 bbls. oil and 13,680 lbs. bone each. Thus the whole number of
vessels comprising the North Paciflc fleet in 1864 is 81 (exclusive of the W il­
liam Gifford, to hear from) with a aggregate catch of 43,385 bbls. whale oil and
642,050 lbs. bone, or an average of 535 bbls. oil and 7,926 lbs. bone each.
On the whole the success of the Northern fleet has not been very encouraging,
for although oil and bone are commanding apparently high prices, yet almost
every article of merchandise has advanced more than our staples, and the enor­
mous expenses attending a whaling voyage in these times, will require a muck
larger catch to make any favorable compensation to owners o f these vessels.
Although the weather in the Arctic and Ochotsk has been very boisterous,
there have been only two vessels lost the last season—the Henry Kneeland, in
the Arctic, and the Mary in the Ochotsk, both belonging to this port.
The success in the Hudson’s Bay whaling, did not come up to our expectations
the past year. The great difficulty appears to be the short time between the
breaking up of the ice aud the closing up of the same, rendering the season avail­
able for whaling extremely short. Whales seem to be plenty, but they are very
shy and difficult to capture. There were four arrivals from Hudson’s Bay in
1864— three into New Bedford, and one into New London, bringing 3,454 bbls.
whale oil and 55,000 lbs. bone. There are now wintering in Hudson’s Bay and
Cumberland Inlet 12 American whalers— the Antelope, Ansel Gibbs, Black
Bugle, Glacier, Morning Star, and Orray Taft, of this p ort; Cornelia, George
aud Mary, Helen F . Mouticello, aud Pioneer, of New London, and Coucordia,
of Sag Harbor, all of which will probably arrive home next fall.
Of the American whalers from the North twenty-three arrived at San Fran­
cisco, forty-two at the Sandwich Islands, one at Monterey, and one at Panama.
A ll the foreign whalers arrived at the Sandwich Islands.
O f the 81 whalers which sailed from home ports in 1864,19 were bound to the
North Paciflc, 15 to Cumberland Inlet and Hudson’s Bay, 5 to Desolation and
Hurd’s Island, and the balance sperm whaling to the Atlautic, Indian, and Pacific
Oceans.
From present appearances the import of sperm oil will be considerably less
this year than in 1864. The fleet on the Paciflc coast is very small, and doing
very little, with one or two exceptions. The South Pacific fleet is also much re­
duced, aud have done poorly ; very few ships are in the Indian Ocean. The fleet
iu the Atlantic have done better, although whaling has been much interrupted
about the Western Islands, the “ Two Forties,” and other grounds, by uncom­
mon rough weather. The quantity of oil lauded at Fayal in 1864 by whalers is
4,b62 bbls. sperm, 883 bbls. whale ; also 1,395 lbs. bone. A ll the oil but about
300 bbls. has arrived home.
The import of sperm oil for the year is 64,372 bbls., 683 bbls. less than in
1863; of whale oil, 71,863 bbls., an excess of 8,889 bbls. over the preceding
year ; of whalebone, 760,450 lbs.— 271,700 lbs. more than in 1863.
The exports exceed those of 1863 by 28,634 bbls. sperm, 703 bbls. whale oil,
and 250,600 lbs. bone.




13 6

[February,

Statistics o f Trade and Commerce.

The average prices for the year are : Sperm oil, $1 78 per gallon ; whale oil,
$1 28 per gallon, and whalebone, $1 80 per pound, exceeding that of the pre­
vious year, 17 cents for sperm, 33 cents for whale oil, and 27 cents for bone.
The stock of sperm oil on hand January 1,1865, is 10,818 bbls. less, and that
of whale oil 2,665 bbls. less than the corresponding period in 1864. Whalebone
is in excess 21,170 lbs.
W e refer our readers to the following tables o f statistics :
EXPORTS OP SPERM OIL, WHALE OIL, AND WHALEBONE PROM THE UNITED STATES.

1864
1863
1862
1861
1860
1859

•

.
.

-

-

-

-

.

-

-

.

-

.

-

-

-

.

-

-

-

-

-

-

IM P O R T S

1864
1863
1862
1861
1860
1859
1858
1857
1856
1855
1854
1853
1852
1851
1850
1849
1848
1847
1846
1845

-

.

.

•

.

.

•

-

.

-

-

-

-

-

-

.

-

-

-

-

.

-

-

.

.

.

.

-

-

-

-

-

.
_

-

_

-

.
-

.

-

-

-

.
-

-

.

IM P O R T A T IO N S

-

-

-

OF

.

.
-

-

FROM

O IL ,

SPERM

W HALE
STATES

N ew Bedford Fairhaven
W estport Dartmouth ’ Mattapoisett
"
Sippican

-

-

-




"
-

-

-

-

-

-

-

“

•

-

.

-

-

-

“

-

-

-

-

D istrict o f N ew Bedford
N ew London
Nantucket
Provincetown

-

•

•
-

-

Bbls. sp.

Bbls. wh.

Lbs. bone.

45,000
18,866
27,976
37.547
32.792
52,207

12,000
11,297
68,583
49,969
13,007
8,179

530,000
279,394
2,004,981
1,145013
911,226
1,707,929

1846

to

1865.

Bbls. ep.

Bbla wh.

Lbs. bone.

64,372
65,055
55,641
68.932
73,708
91,408
81,941
78,440
80,941
72,649
76,696
103,077
78,872
99,591
92,892
100,944
107,976
120,753
95,217
157,917

71,863
62,974
100,478
133,717
140,005
190,411
182,223
230,941
197,890
184,015
319,837
260,114
84,211
328,483
200,608
248,492
280,656
313,150
207,493
272,730

760,450
488,750
763,500
1,038,450
1,337,650
1,923,850
1,540,600
2,058,900
2,592,700
2,707,500
3,445,200
5,662,300
1,259.900
3.966,500
2,869,200
2,281,100
2,003,000
3,341,680
2,276,930
3,167,142

O IL ,

AND

in

1864.

W HALEBONE

IN T O

THE

U N IT E D

Bbls. sp.

Bbls. wh.

Lbs. bone.

48,172
1,278
2,241
500
881
155

35,883
711
32
525
4

224,250
600
—

57,227
915
78
1,850

37,164
8,091
18
1,742

9

—

700
—

225,550
149,600
—

2,600

1865 J

Statistics o f Trade and Commerce.

Salem
Edgartown Falmouth Sag Harbor Boston
New York Total

137

90
153
931
1,133
3,894
2,101

1,525
232
505
9,611
12,955

15,650
1,700
3,700
159,000
202,650

64,372

71,863

760,450

20

STOCK OF OIL AND BONE ON HAND ON THE FIRST OF JANUARY IN THE LAST SEVEN
YEARS.

sp.
20,382
31,200
16,038
16,132
15,838
13,429
17,176

Bble.

1865
1864
1863
1862
1861
1860
1859

-

Bbls. wh.

Lbs. bone.

6,679
9,344
23,019
58,378
80,469
96,480
82,376

170,150
148,980
91,500
295,600
438,700
380,600
400,000

AVERAGE PRICES OF OIL AND BONE.

1864
....................................................................
1863
................................................ .........
1862 ......................................................................
1 8 6 1 .........................................................
1860

Sperm.

Whale.

Bone.

178
161
142i
131*
141*

128
95*
59444*
49 4

180
153
82
66
80

RAILROAD AND STEAMBOAT ACCIDENTS.
T hese figures give the result of the railroad and steamboat accidents in the
United States the past year :
KAILEOAD ACCIDENTS.

Number o f accidents and the killed and wounded in 1864 and the ten preceding years:—
-

Accidents.

January .................
February.................
March.....................
A pril.......................
M ay.........................
J u n e.......................
July..........................
August'...................
Septem ber.............
October..................
N ovem ber.............
December...............
Total...............

16
7
11
8
12
10
9
17
15
13
16
8
—
140

Killed.

Wounded. Accidents.

Killed.

27
17
87
7
42
19
74
87
47
69
28
15
—
404

28
28
37
26
166
106
145
194
106
177
111
110
■■
1,486

14
102
14
4
4
26
11
14
30
24
IS
8

11
9
10
9

4
8

6
10
10
7
2
3

Wounded.
75
67
64
41
28
62
49
33
103
76
66
17

—

—

__

89

264

671

The above figures do not include accidents where no lives were lost, accidents
to individuals which were caused by their own carelessness or design, or deaths
V OL. L II. ---- NO. I I .
9




138

[February,

Statistics o f Trade and Commerce.

or injuries resulting from the recklessness o f persons in crossing or standing upon
railroad tracks where trains were in m otion.
The following table exhibits the number o f accidents, with the number o f per­
sons killed and injured, during the last eleven years :
Wounded*

Accidents.

Killed.

1854............ ..................
1855 ..............................
1856 ..............................
1857 .............................
1858 ..............................
1859 ..............................
1860 .............................
1 861........................... ..
1862 .............................
1868 .............................
1864 ..............................

193
142
143
126
82
79
74
63
99
89
140

186
110
105
130
119
129
57
101
264
264
404

589
589
629
636
417
411
315
459
877
674
1,846

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

1,230

1,869

7,289

STEAMBOAT ACCIDENTS.

Number o f accidents and the killed and wounded in 1864 and the ten precediug yea rs:—
Accidents. Killed! Wounded. Accidents. Killed. Wounded.

January.................
February...............
March...................
A pril.....................
M ay............... ........
J u n e.....................
J u ly .....................
August..................
Septem ber...........
October.................
N ovem ber............
December............. .........
Total.............

••
13
2
..
7
45
72
8
72
28
86
25
858

o

2

..
.•
..
•.
15
,.
4

2
2
1
3
2
1

•.

5
6
5
43
4

i
5
2
20
6
14

.

. .

. .

65
31
71
13
12

10

60
22
10
82

3
2
2
1
1

143

20

255

85

. .

3
18
6

The above table does not include accidents where no lives were lost, the killed
and wounded by accidents occurring at sea, or those who lost their lives or Teceived injury on board o f steam vessels during engagements.
T he following table shows the number o f accidents and the killed and wounded
during the last eleven years :
Accidents.

1854 .................................................................
1865 ..................................................................
1856 ...................................................................
1857 .................................................................
1858 ........... ......................................................
1859 .................................................................
1860 ...............................................* ...............
1 8 6 1 .................................................................
1862 ..................................................................
1863 .................................................................
1864 ..................................................................




Killed.

587
176
353
322
300
342
597
69
220
255
358

Wounded.

225
107
127
82
107
146
134
88
70
85
143

T he Commerce and Navigation Report, for 1862, which is just issued, has been delayed so long that the returns have lost
much of their interest. Their value, however, for future reference and comparison, is the same. W e give, this month,
simply the exports.

1865.]

COMMERCE OF THE UNITED STATES.

EXPORTS FROM THE UNITED STATES TO FOREIGN PORTS FOR THE TEAR ENDING JUNE 30.
Oil— sperm..................................
Do.— whale and other fish . . . .
"Whalebone..................................
Spermaceti and sperm candles
Fish, dried or smoked.................
Do. pickled................................
Do.
do. ................................

.g a lls.

.c w t.
. bbls.
kegs.

1,335,736
9 39,872
1,068,896
157,783
219,628
33,815 )
2,433 j

Total product of the S e a ..
P roducts

of th e

$1,7 89 ,0 8 9
537,547
896,293
61,829
690,088
191,634

Quantity.
1,518,457
1,009,468
979,231
456,408
219,324
48,352 )
2,662 j

$ 4,156,480

-18G2Yaluo.
$ 2,1 10 ,8 2 3
681 ,26 4
786,562
148,907
634,941
244,028

Quantity.

Y alue.

7 t9 ,4 7 7
2,599,316
796,884
280,526
250,819
67,575 )
8,538 j

$ 962,608
1,280,697
556 ,79 5
64,481
712,584
410,188
$3,9 87 ,2 9 8

$4,451,515

F orest —

Staves and headings.................
Shingles......................................
Boards, planks, <kc.....................
Hewn timber..............................
Other lumber...............................
Oak bark and other d y e ...........
Manufactures of wood...............
Tar and p itch .............................
Rosin and turpentine.................
Ashes— pots and pearls.............
Ginseng........................................
Skins and furs..............................

7 5 ,8 0 0
41,601
170,922
82,376

. bbls.
. b bls.

60,628
770 ,65 2
271,949
895,909

$ 2,365,516
169,546
2,777,919
231,668
705,119
164,260
2,703,095
151,404
3 ,818.23S
822 ,82 0
295,766
1,533.208
$1.3,788,559

78,408
30,078
132,832
8,821

55,057
686,207
99,701
847,577

$1,9 59 ,3 9 2
108,610
2,092,949
97,875
441,979
189,476
2,.344,079
143,280
1,060,257
651,547
292,899
878,466
$10,26 0 ,8 0 9

69,965
20,118
129,248
4,891

9,765
65,441
74,895
6 30,714

-

$ 2,590,649
67.356
2,015,982
138,521
1,162,163
186,863
1,755^793
55,884
2 9 8 ,40 0
457,049
4 0 8 ,59 0
794,407
$9,926,157

139

Total product of the Forest




Yaluo.

Statistics o f Trade and Commerce,

-1861.-

-1SG0.Quantity.

PsOrUCTS OF THE S e A----

P roduct

of

A

gricu lture —

Quantity.

Value.

Quantity.

Value.

Quantity.

Valuo.

(Animals.)
D o......................................
Tallow ............... ..

27,601
7,640,914
15,515,799
1,616 )
202,319 )
26,844,610
40,289,519
48,865
1,635
1,435
1,055,928

$2,674 324

41,822 )
65,468 J
29,718,364

1,598,176
1,036,260
1,052,426
Horned cattle8,885
1,144,321
15,531,381
32,361,428
1,665,630
1,682 1
3,132,313
153,964 j
2,273,768
60,264,267
4,546,831
49,908,911
463
877,604
233,368
1,469
158,080
1,799
33,613
847,301
389,612
$20,215,226

$1,675,773
2,942,370
673,818
223,246
2,355,985
3,321,631
2,609,818
4,848,339
4,729,297
3.267
193,420
191,873
28,417
287,846

57,234 )
50,171 f
46,773,768
3,634
26,691,247
34,052,678
2,102 )
305,949 )
141,212,786
118,573,307
3,306
1,534
3,237
1,153,388

$24,035,100

$2,017,077
4,026,113
518,687
197,019
4,164,344
2,715,892
8,980,153
10,290,572
10,004,521
23,562
167,442
212,187
34,600
296,225
$38,638,894

(Vegetable Food)—

Wheat............... ............ ..
Flour ....................................
I n d ia n c o r n ................................
C o r n m e a l ................................... ..................... bbls.
Rye m e a l .............................. ..................... bbls.
B is c u it

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

Do
................................
Potatoes................................




119,236 )
46,543 j
380,372
78,809
84,163 )
77,837 J

$4,076,704
15,448,507
2,399,808
912,075
48,172
1,058,304
478,740
284,673
109,861
206,055
2,567,399
$27,690,298

31,238,057
4,323,726
10,678,244
208,313
14,143
110,690 )
36,847 )
413,091
112,523
39,162 )
60,038 j

$38,318,624
24,645,849
6,890,865
692,003
55,761
1,124,556
429,708
285,608
102,678
269,863
1,382,178
$74,191,993

S7,289,572
4,882,033
18,904,898
263,570
14,463
128,846 )
39,463 j
417,138
66,767
2,146 )
7,336 J

$42,573,295
27,534,677
10,387,383
778,344
54,488
2,364,625
490,942
300.599
90,412
238,923
156,899
$84,970,587

[February,

A p p le s .................................
R ic e ......................................
Do........................................ ...................... bbls.

4,155,158:
2,611,596
3,314,165
233,709
11,432

Statistics o f Trade and Commerce.

.....................
B utter..................................
Cheese ...............................
Pork ...................................
D o........................................
Hams and bacon................. ....................... lbs.
Lard......................................
H o g s ............................................................. No.
Horses ................................ ....................... No.
Mules.................................... ....................... No.
........................ No.
W o o l .............................................. ....................... lbs.

78,674 )
76,283 j
16,269,635

15,598,698
1,752,087,640
167,274
15,035
17,817
2,715
116,574
186
1,133,986
273,257

Total produce of Agriculture . .

)
( $191,806,555
)
V
15,906,547
\
3,810
596,919

9,531
103,244
32,866

Value.

Quantity.
6,170.821
801,345 778
160,816
18,815
19,450
28,540
200,417
136
3 ,275,024
8,835,837

$25 6 ,2 6 4 ,9 96

i
J1

])
f

$34,051,483
13,784,710

]1
49,609
1,063,141
8,608
301,329
2,006,063

Quantity.
66,443
4,998,121
107,233
31,962
15,489
15
66,064
43
1,284,849
4,850,046

$14 9 ,4 9 2 ,0 26

Value.
i
j1
j1

$ 1,180,113
12,325,356

J1

59
295,255
8 ,300
90,022
663 ,89 8
$ 1 3 8 ,1 7 1 ,9 8 4

M anufactures —

W a x......................................................
Refined Sugar............................................... lbs.
C h ocolate..................................................... lbs.
Spirits (from grain).................................galls.
Do (from molasses)..............................do
Do (from other materials).................do
do
Molasses.......................................
Vinegar....................................................... do
Beer, ale, porter and c id e r .................... do
Do
do
........... doz. bottles
Linseed oil.................................................galls.
Spirits of turpentine.................................. do
Household furniture........................................
Carriages, cars, die....................................................
H a t s ...................................................................
Saddler/.............. ..............................................
Candles, adamantine, &c.............................. lbs.
Soap.
do
Snuff..................................................................do
Tobacco, manufactured...................................do




362,474
3,332,045
17,194
748,135
2,855,952
494,643
70,439
304,257
160,887
13,043
37,809
4,072,023

...........
...........
...........
4,875,552
6,852,485
39,923
17,697,309

$ 13 1 ,8 0 3
301 ,67 4
2,593
311,595
930,644
219,199
35,292
41,368
S I,371

22,202
26,799
1,916,289
1,079,114
816,973
211,602
71,332
708 ,69 9
494.405
11,354
3,372,074

270,425
3,236 110
9,906
2,994,181
2,885,869
1,362,414
91,593
815,994
136,082
7,477
42,6 38
2,941,855

4,569,259
7,202,130
81,465
17,783,363

$94 ,49 5
287,881
2,157
867 ,95 4
850 ,54 6
593,185
39,138
38,2 62
25,876
13,604
27,982
1,192,787
838,049
4 72 ,08 0
156,956
61,469
633,048
455,648
17,703
2,742,828

142,312
1,470,403
18,822
768,295
2,496,220
3,956,359
45,009
268,927
201,672
25,062
43,507

$47 ,38 3
147,397
4,288
328,834
715,694
1,577,909
21,914
29,701
45,4 64
20,893
54,691

5,819,503
9,986,984
38,839
4,071,963

9 42 ,45 4
519,175
132 727
67,7 59
836 ,84 9
6 36 ,04 9
7,914
1,068 730

Statistics o f Trade and Commerce.

Cotton, Sea Island..................................
Do. other............................................
Tobacco, unmanufactured.....................
Do
..................................................
Do
..................................................
Flaxseed..................................................
Clover seed...............................................
Hemp ......................................................
Brown sugar............................................
H o p s .........................................................

Value.

1865.]

Quantity.

$ 6 7 4 ,3 0 9

782,525
246,572
467,772
129,717
50,446
19,143
38,257
188.754
282,848
5,174,040
1,661,122
1,115,455
3,356,449
1,403,506
382,089
5,792,752
480
27,384
525,175
66,086
23,345
61,377
15,979
4,862
19,011
9,918
157,124
129,653
278,268
285,798
223,809
277,948
39,064

Value.

2,714,466
655,808
28,422
2,319,641
537,401
103,023
14,056
6,941
5,3'4,5S6
26,400

$555,202
779,876
256,274
847,108
144,046
6,241
26,825
15,411
270,084
76,750
5,536,576
2,875,629
1,149,433
2,215,032
1,076,959
300,668
4,364,379
30
39,490
462,564
40,624
32,792
62,360
8.910
1,271
7,607
7.910
106,562
150,974
250,365
347,915
240,923
894,731
50,229

Quantity.

1,776,556
679,594
19,690
649,002
897,606
79,237
27,868
16,478
4,578,807
11,790

Value.

$389,007
721,211
199,669
101,803
228,109
7,334
38,412
45,584
175,856
54,671
4,212,448
1,098,546
1,490,336
587,500
508.005
221,685
1,629,274

81,940
472,924
32,108
14,221
99,166
19,884
553
13,049
86,280
169,147
152,026
215,231
399,793
264,114
623,906
62,286

[February,




2,946,633
678,186
26,053
3,276,411
475,445
903,468
7,097
5,901
6,005,694
65,726

Quantity.

Statistics o f Trade and Commerce.

Leather......................... 11,
Boots and shoes.. . . . . . .
Cables and cordage................. ........
Gunpowder.....................
Salt...................
Lead.....................
Iron-*-pig........................
B a r ................................
H a ils ......................................
Castings............. ....................
Other manufactures o f___
Copper, brass, <fcc..........................
Medical drugs............... .
Cottons— Printed and colored . .
Do
white other than duck
Do
d u ck ..............................
Do
other manufactures.. .
Hemp thread.................................
Hemp bags, <kc..............................
Wearing a pp arel.........................
Earthenware, <fcc...........................
Combs and buttons.....................
Brushes and brooms.....................
Billiard apparatus.......................
Umbrellas and parasols...............
Morocco, <fec...................................
Fire engines..................................
Printing materials.......................
Musical instruments.....................
Books and maps...........................
Stationery......................................
Paints and varnish.......................
Glassware......................................
Tinware..........................................

Value.

142

Quantity.

Quantity.

Manufactures o f pewter and lead...................
Marble and stone..............................................
India rubber boots and shoes................. pairs
Do other manufactures of............................
Gold and silver l e a f ........................................
Jewelry, &c.......... .............................................
Artificial flow ers..............................................
Trunks and valises............................................
Lard oil......................................................galls.
Oil cake...............................................................
Bricks, lime and cem ent..................................
Unenumerated manufactures..........................

101,693

60,209

Value.

$46,081
176,239
68,826
182,015
140,187
24,659
207
50,184
55,783
1,609,828
154,045
2,397,445

Quantity.

62,729

85,676

V a lu e .

$30,534
185,267
33,603
160,088
63,372
48,740
1,459
40,622
81,783
1,386,691
93,292
2,530,689

Q a a n titj.

35,116

239,608

V a lu e .

$ 28,832
195,442
85,903
107,953
63,078
67,750
130
50,771
14S ,056
876,841
83,385
1,986,976

k—
1
CO
o
Or

sT
«s>.

0*

Total Manufactures..................................

$ 25,066,000

$ 35,786,804

$ 39,544,898

gr

C o a l..................................................................tons
I c e .................................................................... tons
Petroleum, crude and refined.................... galls.
Quicksilver.............................................................
Gold and Silver Bullion......................................
Gold and Silver Coin............................................
Raw Produce not specified..................................
Total Exports of Domestic Products.




187,059
49,153

$ 740,783
188,134

153,171
44,753

$577,386
172,268

258,682
30,918,173
26,083,678
1,855,391

631,450
13,311,280
10,488,590
2,794,046

$373,189,274

$ 227,966,169

213,046
48,390
5,828,129
••

•••

$ 837,117
182,667
1,539,027
1,237,643
13,267,739
17,776,912
1,067,703
$213,060,247

1*
a -

§

3
**

CO

144

Railway New s.

RAI LWAY

[February,

NEWS.

RAILWAYS IN SPAIN— THE PYRENEES TO BE TUNNELLED.
A few years ago Spain was as innocent of railroad conveniences as she was
in the days when Don Quixotte bestrode his Rosinante and set forth in search of
adventures for the honor of Dulcinea del Toboso. The Dons had heard of the
the modern invention, and thought, doubtless, that the devil had much to do with
i t ; but the muleteers, as they toiled over the sunny vine-clad hills, whistled in stolid
indifference, and with full confidence that their business was not to be broken in
upon by the tireless industry and force of the iron horse. The dream, however,
has passed ; and now the city of Madrid is connected by railroad with all the
frontiers of the kingdom—with the Mediterranean by way of Alicante, Yalentia,
and Barcelona; with the ocean by way of Cadiz to the south and of Santander
to the north ; with Portugal by way of Estremadura and Badajoz, famed in war­
like story, and with France by way of the Basque provinces and Irun.
The length of the lines conceded, according to returns published in 1864, was
3,781 miles; that worked, 2,230 miles. The concessions were made to as many
as 37 different companies. The capital raised by shares was about £24,000,000
sterling ; and by the issue of debentures, rather more than £25,000,000. The
subventions which the government undertood to allow were £12,600,000 ; but
only about half of them were actually paid. The average receipts per mile are
not clearly stated, but they were slightly less than in 1852. In the first six
months of 1864, compared with the corresponding period of 1863, some o f the
principal lines, however, showed a marked advance— in the north of Spain, of as
much as 23 per cen t; Seville, 20 ; Pampeluna, 12 ; Barcelona, 4. French
capital, as is known, is very largely invested in Spanish lines ; and the French
now see that, in order to enable them to prosper, it is absolutely necessary that
a radical reform should be made in the customs system of Spain— a reform which
by abolishing many of the import duties-and reducing the rest, shall permit the
introduction of foreign merchandise in considerable quantities. Unfortunately,
however, Spanish cabinets show no disposition to reform the commercial regim e;
and so little inclination is there in Spain to befriend railways, that a tax of 10
per cent of the receipts of express trains has just been imposed.
The companies eDjoy the privilege of importing the materials for the work
free of duty. The construction of the line to the French frontier necessitates
the construction of a tunnel through the Pyrenees— almost as great a work as
that of tuunelling the Alps. The elevation is to be six feet in one hundred.

PACIFIC RAILROAD TO BE COMPLETED— ISSUE OF BONDS BY ST. LOUIS.
T he County Court of St. Louis, at its session December 18th, ordered the
issue to the President and Directors of the Pacific Railroad Company, bonds to
the amount of $700,000, being the same that the County Court was authorized
to issue by the recent act of the Legislature. This loan o f the county credit is




18 65 .]

The Extinguishment o f the Scheldt D ues.

145

upon what is regarded as ample security, and for an amount sufficient to carry
the road through to Kansas City we believe.
In anticipation of this issue, the St. Louis Republican says that work had
been commenced upon the section from Kansas City to Independence, where some
bridges destroyed by the rebels, are being rebuilt. Soon it will be resumed along
other portions of the line, and it is hoped that by midsummer, the last rail will
be laid and the last spike driven, so that by that time the communication will be
perfected between St. Louis and the interior of Kansas.

BRIDGE OVER TUB MISSISSIPPI AT FULTON.
The Chicago Tribune contains an elaborate account of the completion of a
massive bridge spanning the Mississippi River, between Fulton, Illinois, and
Clinton, Iowa, forming a connecting link in the railroad communication between
the Lake City and the North-Western Trans Mississippi States. The river, at
this point, has been crossed hitherto by the vexatious and inadequate medium of
of a ferry-boat transporting three cars at once, and obviously subject to great
detentions and annoyance, notwithstanding which, the business of the route has
largely increased each year. It has cost the railway company, hitherto, more
than one dollar per ton to take freight over the Mississippi River by ferry boats.
Hereafter it will cost no more than to run their trains upon other portions of
the road, per mile, except the trifling expense of watching it and turning the
draw o f the bridge. Such was the nature of the stream and its banks, that it
has been found impossible, heretofore, to take across all freight offered at that
point. Hereafter, no such difficulty will be experienced, and an immense increase
in freight is inevitable. This route, which is called the Dixon and Air Line
Road, will connect the nearest points of the Missouri and Mississippi rivers to
Chicago, following very nearly the forty-second parallel of latitude, and destined
to give us connection with the great Platte Valley, the great highway of empire
Westward.

TIIE EXTINGUISHMENT OF THE SCHELDT DUES.
T he President has issued a proclamation declaring that the treaty between the

United States and the King of the Belgians for the extinguishment of the Scheldt
dues has been duly ratified on both sides, and also another proclamation announc­
ing the exchange of ratifications of the convention between these same nations,
completing by new stipulations the treaty of commerce and navigation of July,
1858.
By these arrangements the United States, in view o f the propositions made
by Belgium to regulate by a common accord the capitalization o f the Scheldt
dues, consents, to contribute to this capitalization, under certain conditions, an
amount not exceeding 2,000,780 francs. The tariff of import duties resulting
from the treaty of the 1st of May, 1861, between Belgium and France, is ex­
tended to goods imported from the United States on the same conditions with
which it was extended to Great Britain by the treaty of July 23, 1862.




146

The Commercial Failures in 18 6 4 .

[February,

The redaction made by the treaties entered into by Belgium with Switzerland
on the 15th of December, 1862, with Italy on the 9th of April, 1863, with the
Netherlands on the 12th May, 1863, and also with France on the 12th of May,
1863, is to be equally applied to goods imported from the United States.
It is agreed that Belgium shall also extend to the United States the reductions
o f import duties which may result from her subsequent treaties with other
powers.
In derogation to the ninth article, o f the treaty of the 7th of July, 1858, the
flag of the United States is to be assimilated to that of Belgium for the trans­
portation o f salt.

THE COMMERCIAL FAILURES IN 1S64.
Office of the Mercantile Agency, 293 and 295 Broadway, )
New York, January 2,1865.
j
To S ubscribers .— In our annual review of the condition of the mercantile,
manufacturing, and trading interests of the country, we are warranted in con­
gratulating subscribers and friends upon the general existent healthy state of
affairs. Our record, during the past year, shows only five hundred and ten failures,
with liabilities amounting to $8,579,700, which, by comparison, exhibits a re­
markably healthy state of the trading community. The number and liabilities
o f failures for the past eight years are as follows :
Northern States.
1 85 7 ....................
1 858....................
1 85 9 ....................
1 86 0 ....................

Number.
4,257
3,113
2,959
2,733

Liabilities.
$ 2 6 5 ,8 1 8 ,0 00
73,608,747
51,3 14 ,0 0 0
61,7 39 ,4 7 4

Northern States.
1 86 1 ....................
1 8 6 2 ....................
1 863....................
1 864....................

Number.
5,935
1,652
495
510

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

In submitting these figures we call attention to the fact of a large dimunition
in the amount of annual failures since the rebellion broke out. This we attribute
mainly to that rigid caution which has obtained in our business community in
dispensing credits, and to the increased values of stocks on hand.
The immense and general prosperity of all branches o f agriculture has aug­
mented the wealth of the trading classes, and the scarcity of labor, suitable to
the requirements of the mechanical interests, has tended to increased wages, and
enhanced receipts of the operating classes. These, the principal consuming in­
terests, on account of their vast number, and constituting, as they do, the material
wealth of the country, have created an unusually large expenditure through the
channel of the retail trade, and yielded returns that enabled this class of mer­
chants to meet their obligations promptly to the jobber. The latter has, there­
fore, been prompt with the importer and commission merchant. Hence the
natural conclusion must be that each, acting in harmony with the other, has pro­
duced a more satisfactory result than could have been anticipated by even the
most sanguine.
Satisfactory as trade for the past few years has proved itself to be, we cannot
but think that merchants should continue to rigidly follow out the course they
have of late adopted, and thus avert any impending crisis that even the most
conservative of our merchants think may yet be in store for us. W e make this




147

The Commercial Failures in 1864.

suggestion from the statistics furnished by our records, which clearly prove that
whenever merchants have deviated from the strict rules of a conservative system
of credit, based upon a well founded pecuniary security, and the closest scrutiny
as to character and business experience, they have been the sufferers.
The deep interest we have felt in arriving at correct statistics, to submit to
the judgment of our subscribers, has induced us to make the most rigid and care­
ful research of our records, at this particular juncture, in order to present to
them, at a glance, an estimate of the wealth of the mercantile, manufacturing,
and trading interests in the loyal States. This estimate is not obtained by aver­
aging the whole number of traders, but by a specific examination of each name
or firm. It has been the work of months, both with us and our associate officers
throughout the country, and the result is shown in the appended table, arranged
by States and the principal cities. The States of Missouri, Kentucky, Louisiana,
and Kansas having been made the theatre of war, thereby disorganizing trade,
are consequently not fully represented in this estimate; and California, as it will
be observed, is entirely omitted. Still, without them, the aggregate shows
168,925 business houses, representing a wealth of §4,944,766,000 mostly invested
in personal property. It is generally conceded that the average profits of trade
range from twelve to fifteen per cen t; but assuming the low figures of ten per
cent, we have $494,476,000 as the accrued gain the past year on the business in­
terests spoken of. This, in view of the unprecedented expenditure necessarily
incurred, both by heavy taxation and in otherwise sustaining the Government,
exhibits the self-supporting character o f our people, and but one element of the
strength of the country, which, when added to the other immense resources not
brought into our estimate, such as real estate, agricultural, mining, and other
interests, should inspire the most hopeful confidence in our future growth and
permanent prosperity.
Faithfully, yours,
R. G. D un & Co.
B . G. DUN AND CO.’ s STATISTICAL TABLE, SHOWING THE ESTIMATED W EA LTH OK THE M E R ­
CHANTS, MANUFACTURERS, AND TRADERS THROUGHOUT THE NORTHERN STATES.

States and prin­
cipal cities.

Business
houses.

Wealth.

Connecticut.. .
Delaware........
Dis*t. Columbia
Illinois.............
Indiana...........
I o w a ...............
Kansas*...........
Kentucky*... .
Louisiana* (N.
O. only)__ _
Maine..............
Maryland__ _
Massachusetts.

5,832
1,150
1,282
12,215
8,512
5.052
438
1,528

$145,588,000
24,701,000
17,448,000
207,508,000
134,240,000
38,532,000
3,357,000
39,559,000

802
4,982
3,665
17,302

States and prin­
cipal cities.

Michigan.........
Missouri* . . . .
Minnesota__ _
N. Hampshire.
New Jersey . .
Hew Y o r k .. . .

Pennsylvania..
Rhode Island..
50,794,000 V erm ont.........
99,293,00(f W isconsin . . . .
102.359.000
Total............
868.815.000

Business
houses.

5,934
3,263
979
2,851
5,910
36,932
17,005
22,941
2,487
2,494
5,369

Wealth.

$83,943,000
81,334,000
7,602,000
38,685,000
90,250,000
1,677,204,000
310.725.000
733.296.000
115,704,000
19,989,000
53,775,000

168,925 $4,944,766,000

* These States, in consequence of the disorganized state of trade caused by the re­
bellion, are not fully represented.




148

R e p o r t o f the S ecreta ry o f the T rea su ry.

[F ebruary,

• REPORT OF TIIE SECRETARY OF TIIE TREASURY.
I n our last issue we noticed some of the suggestions contained in the Report
of the Secretary of the Treasury. W e now give the more important facts and
figures. The report for the previous year will be found in vol. 50, p. 39, o f the
Merchants' Magazine.
RECEIPTS AND EXPENDITURES FOR

1863.

The following is a statement of the receipts and expenditures, estimated and
actual, for the year ending June 30, 1863, ineluding balance for the preceeding
year :
Receipts.

11,599,113

Actual.
$102,316,152
588,383
41,511,488
415,648
109,141,134

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

$156,239,456
5,329,044

$260,632,111
5,329,044

A ggregate.................................................................
"Estimated receipts from loans........................................

$161,568,500
594,000,000

$265,961,161
618,114,884

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

$155,568,500

$884,016,616

Estimated.

From customs...................................................................
Miecellarieoua...................................................................

$72,562,018
486,183
5,641,542

Expenditures.
Estimated.

Peosions and Indians.........................................................
War Department...............................................................
Navy Department.................................... , ...................
Interest on debt.................................................................

$34,261,811
1,840,314
885,419,511
112,199,186
59,165,136

T o ta l.......................................................................... $1,099,131,960
350,000,000
Deduct estimated........................................................
Total .......................................................................
$149,131,960
5,836,639
Estimated b a la n ce..........................................................
From actual receipts from loans.....................................
Deduct balance on hand July 1, 1864 .........................
It shows the amount received from loans applied to the service of
the year ending June 30, 1864...................................

Actual.
$2,155,599
1,511,930
690,191,842
85,133,292
53,685,421
$865,234,081

18.842.558
618,114,884
18.842.558
959,212,326

The statement may be more intelligible in another form, as follows :
Actual expenditures for the fiscal y e a r ...................................................
Deduct receipts from ordinary sources and balance from preceding
y e a r . . . .................. ......................... ......................................................
Balance provided from loans applied to the service o f the year . . . .

$865,234,081
265,961,161
699,212,816

The amount derived from loans specifically stated, is as follows :
Five-twenty bonds, act February 25, 1862..............................................
Fractional currency exceeding amount redeemed..................................
Six per cent bonds, act July 11, 1861......................................................
Ten-forty bonds, act March 3, 1864 .........................................................
Twenty years six per cents, act March 3, 1863 ....................................




321,551,283
2,102,421
30,566,815
13,331,600
42,141,111

18 65 .]

Report o f the Secretary o f the Treasury.

149

United States notes, act February 25, 1862...........................................
One year five per cent notes, act March 8, 1868....................................
Two year five per cent notes, act March 3, 1863...................................
Three year six per cent compound interest notes...................................
Certificates of indebtedness exceeding amount redeemed....................

43,869,821
44,520,000
152,864,800
15,000,000
4,098,758

Whole a m ou n t....................................................................................
Of which amount there was applied to repayment o f public debt... .
Which deducted, it leaves applicable to expenditures...........................
Deduct balance July 1, 1864.....................................................................

$730,64 2,410
112,527,526
618,114,884
18,842,558

Balance applied to the service o f the y e a r ............................................

$599,272,326

National Debt.
The public debt, as stated by my predecessor in his report o f De­
cember 10, 1863, was..........................................................................
To this amount should be added amounts paid into the Treasury
previous to July 1, 1863, for which evidences of debt were sub­
sequently issued....................................................................................
Amount of debt July 1, 1863 .................................................................
Add amount of loans applied to actual expenditures, as above, and
balance in the Treasury July 1, 1864...............................................
It gives the amount of public debt July 1, 1864.................................

$1,098,793,181
23,782,423
1,122.575,604
618,114,884
1,740,690,489

RECEIPTS FROM MISCELLANEOUS SOURCES.

The very large comparative receipts from miscellaneous sources require ex­
planation. They are accounted for as follows, v iz .:
From captured and abandoned property.................................................
Premium on gold shipped from San Francisco to London.....................
Sales o f prizes due to captors...................................................................
Internal and coastwise intercourse fe e s ..................................................
Premium for sales of gold c o in .................................................................
Commutation money....................................................................................
A ll other sources...........................................................................................

$2,146 715
2 799 920
4,088 111
6,809 287
16,498 975
12.451,896
3,716,542

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

$47,511,448

The Secretary is of the opinion that not over $25,000,000 can be safely calcula­
ted upon as likely to accrue from similar sources during the current year.
FINANCIAL

OPERATIONS ABROAD.

The item of “ premium on gold shipped from San Francisco to London " may
also require further explanation. In March, 1863, it became necessary to trans­
mit a considerable amount of funds to London for a special purpose, for which
an appropriation had been made by Congress; and it was thought advisable to
deposit a certain amount of our securities with an eminent London banker
against which bills might be drawn. Five-twenty bonds to the amount of ten
millions werfe accordingly placed in the hands of two distinguished citizens, to
whose care the negotiation was committed. The negotiation failed, and the ten
millions were returned to the Treasury and disposed of. It was thought advisable
that the amount of four millions should remain, and that exchange should be
drawn against it aDd the bonds disposed of abroad if a favorable market should
be found. It appears, however, that very nearly this amount of issue is in excess
of the five hundred and eleven millions authorized by existing loans, $510,756,900
having been disposed of. It is at least questionable whether by this clause power
is conferred to dispose of an amount beyond that fixed by existing laws. Addi­
tional legislation may remove that doubt, should Congress think it advisable
otherwise they may be cancelled. Exchange having been drawn, it became ne­
cessary to provide funds to meet the bills at maturity, which was accomplished
by shipments of gold from California.




150

[February,

Report o f the Secretary o f the Treasury.
ESTIMATED EXPENSES OF THE CURRENT FISCAL TEAR.

The expenditures for the current fiscal year were estimated in the last report
of the Secretary as follows, v iz .:
Estimated balance of former appropriations..................................
For the civil service .........................................................................
For pensions and Indians...................................................................
For the War Department.................................................................
For the Navy Department.................................................................
For interest on the public debt.........................................................

$350,000,000
27,973,194
9,631,303
536,204,127
142,618,785
85,387,677

Aggregate................................................................................

$1,151,815,089

Deducting as likely to remain unexpended on the 30th June, 1864
Leaving to be provided for.............................................................
And the receipts from ordinary sources were estimated in the
aggregate a t ....................................................................................
Leaving to be provided by loans...................................................

$400,000,000
751,815,089
206,836,539
644,978,549

This estimate, like all others of a similar character, was necessarily based on
past experience with regard to unexpended balances, and upon estimates from
the different departments, which, in a time of war, must be liable to great un­
certainty. Additional information enables me to state the probable expenditures
with a near approach to accuracy, as corrected, by including so much of the
actual balance of former appropriations as is liable to be used during the year,
those made at the last session of Congress, the additional amounts called for to
meet probable deficiencies, and reducing the balance of unexpended appropria­
tions at the end of the year, as from amounts expended duriug the first quarter,
would seem necessary. The estimate is as follows, v iz.:
Actual unexpended balances as a b ove............................................
For the War Department...................................................................
For the Navy Department.................................................................
F or the civil service............................................................................
For pensions and Indians........................................................
Indefinite appropriations...................................................................

$380,887,050
625,945,741
110,047,469
21,796,572
6,590,089
9,152,007

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

$1,153,918,920

A dd interest on public debt ............................................................
Add public debt matured and maturing during the year, viz.:
Certificates of indebtedness...........................................................
Texas debt.............................................................................................
Loan of 1842 ........................................................................................
Treasury notes under act of March 2, 1861, and prior thereto . .
T o ta l.............................................................................. ..........

$91,810,215
160,729,000
2,149,000
*196,803
278,511
$1,409,082,455

OUTSTANDING CERTIFICATES OF DEBT.

The amount of certificates outstanding on the 1st November, 1864, was
$238,593,000. This beiug a much larger amount than the market ought to bear,
it would not be wise to calculate upon these securities as available for the service
of the year beyond $75,000,000.
THE RESOURCES FOR THE CURRENT YEAR.

The available probable resources for the current year may then be stated as
follows :
F rom customs........................................................................................
Lauds....................................................................................................
Internal revenue..................................................................................
Miscellaneous resources.......................................................................




$70,271,091
642,185
249,562,859
24,020,171

i

860 .]

Report o f the Secretary o f the Treasury.

151

Direct tax..............................................................................................
Certificates of indebtedness................... .............................................

16,079
75,000,000

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

$419,512,389

To this should be added probably unexpended balances, June
30, 1866.............................................................................................
Balance of cash July 1, 1864............................................................

350,000,000
18,842,558

Total resources..........................................................................

$788,354,947

Which, deducted from expenditures, leaves balance to be provi­
ded for by loans...............................................................................
If, however, an additional sum o f fifty millions should be realized,
as proposed by the Commissioner, from internal duties, the
amount to be raised by loans would be........................................
From this should be deducted the public debt redeemed.............
Leaving an increase of public debt at the close of the year . . . .

620,727,508
670,727,508
88,353,820
482,374,188

[Abie.— In addition to the liabilities before stated, it may be mentioned that
the seven-thirty notes, now called the issue of 1861, and the one year five per
cent legal tenders, amounting to $43,585,000, also become payable during the
current year. The conversion of the former being provided for, however, by the
act of August, 1861, and the latter, by a power of substitution, under the act
of June 30, 1864, they have been excluded from this estimate. The amount of
seven-thirty notes redeemed in money to November 1, 1864, is only $63,500,
charged to current expenditure, while the whole amount converted to that date
is $125,864,900.]
RECEIPTS AND EXPENDITCRES FOR

1864-65.

Stated in the usual form, by taking the actual receipts and expenditures of the
first quarter as a distinct basis of calculation, the result is the same, viz. : For
the first quarter of the current year, ending September 30,1864, the actual re­
ceipts, as shown by the books of the Treasury, were as follows :
From customs..........................................................................................
From lands..............................................................................................
From direct tax......................................................................................
From internal revenue.................................
From miscellaneous sources.................................................................

$19,271,091
342,185
16,079
46,562,850
9,020,171

Total receipts..............................................................................

$76,212,889

Add balance iu Treasury July 1, 1864..............................................

18,843,558

Receipts from all sources excepting loa n s........................................

$94,064,947

For the three remaining quarters, ending on the 30th of June, 1865, the es­
timates are :
From customs .....................................................
Internal reven ue.................................................
L an ds...................................................................
Miscellaneous sources........................................

$51,000,000
203,000,000
30,000,000
15,000,000

Total............................................................................................
Total receipts from ordinary sources, actual and estimated, with
balance on hand July 1, 1864 .........................................................

$269,000,000
$363,354,947

The expenditures foi the first quarter, ending September 30, 1861, were as
follows :




162

Report o f the Secretary of the Treasury.

[February,

Civil service..............................................................................................
Pensions and Indians................................................................................
War Department......................................................................................
Navy D epartm en t..,.............................
Interest on public debt......................................................

$8,'712,422
4,935,179
286,200,288
33,292,916
19,921,054

Total, exclusive of principal of public d e b t..................... .

1353,061,861

For the three remaining quarters the estimated expenditures, based upon ap­
propriations and estimated deficiencies, are :
»

For
For
For
For
For

the civil service..............................................................................
pensions and Indians.....................................................................
War Department...........................................................................
Navy D e p a rtm e n t..............................................
interest on public d e b t .................................................................

126,852,489
6,516,595
677,479,3S4
109,939,644
71,889,160

Total of expenditures, actual and estimated........................

81,245,1729,135

These estimates include all unexpended appropriations from former years, and
there may be deducted, as a probable unexpended balance at the close o f the
year, $350,000,000, leaving the total amount, actual and estimated, for the cur­
rent year, $875,729,135. Deducting the receipts from the total of expenditures,
actual and estimated, there will remain $512,374,188.
T1IE DEFICIENCY.

I f Congress should adopt the measures for increasing the internal revenue at
an early day, the Secretary believes there may be added to the receipts from that
source $50,000,000, which being deducted, there would remain to be provided
$482,374,188.
TIIE PUBLIC DEBT.

The public debt, matured and maturing during the year, is. as before stated *
$163 353,320. From this may be deducted, as likely to be provided for by new
certificates of indebtedness, $75,000,000. Add this sum ($88,353,320) to the
balance to be provided for the expenditures of the year, viz. $482,374,188, and
it makes the whole amount to be provided from loans $570,727,508. But as this
would include so much of the existing public debt as would be redeemed, exceed­
ing certificates issued within the year, viz., $88,353,320, this sum is to be deduc­
ted from the amount to be obtained' by loans, viz. $570,727,508, showing the
probable increase of the public debt during the year to be $482,374,188, which,
added to $1,740,690,489, would make the public debt on July 1, 1865,
$2,223,064,677, subject to such increase as may be occasioned should Congress
not provide for additional revenue, or should the income from ordinary sources
lall short of the estimate submitted.
ESTIMATED RECEIPTS AND EXPENDITURES.

Any estimate which may be made of the probable receipts and expenditures
for the next fiscal year must necessarily be liable to still greater uncertainty.
This remark applies more particularly to expenditures, for while, if existing laws
remain unchanged, the amount of revenue may be calculated with reasonable
certainty, it is impossible to anticipate what the exigencies of war may require.
On the one hand this may call for increased effort, and on the other, it may be
confidently hoped that the great struggle is near its termination, and that, con­
sequently, tbe estimate now submitted will prove far beyond the wants of the year. ■
While any doubt remains, however, it would be unsafe to assume any other basis
of calculation than one predicated upon the existing state of affairs.
The receipts for the year ending June 30,1866, are estimated as follows :




18 65 .]

153

N ational Banks o f the United States.

From c u s t o m s ...................................................................
Internal duties.........................
L ands....................................................................... ..............
Miscellaneous sources............................................................

$70,000,000
300,000,000
1,000,000
25,000,000

A g g rega te.................................................................

$396,000,000

The expenditures are estimated as follows :
Balance o f unexpended appropriations............................
For the civil service...........................................................
Pensions and Indians.........................................................
The War Department.........................................................
Navy Department...............................................................
Interest on public debt.......................................................

$350,000,000
83,082,097
14,196,050
631,758,191
112,219,666
127,000,000

Aggregate .............................................................
But from this aggregate there may be deducted as likely
to remain unexpended at the close of the year.........

$1,168,266,005

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

$818,256,005

350,000,000

Deduct estimated receipts from ordinary sources, 55396,000,000, there will re­
main to be provided for by loans $422,256,005. T o this should be added for
redemption o f excesss o f certificates o f indebtedness $47,365,000, making the
whole amount to be provided for by loans $469,621,005. Assuming the correct­
ness o f these estimates, the whole debt on the first day o f July, 1866, would be
found by adding the foregoing amount o f $422,25,6005 to the estimated debt in
July 1, 1865, $2,223,064,677, giving $2,645,320,682 as the amount o f the debt
at the close o f the next fiscal year.
This calculation is made on the same basis o f receipts as that assumed for the
current year. It is quite probable, in the judgment o f the Commissioner o f
Internal Revenue, that $300,000,000 may be received in another year from that
source, without the additional legislation suggested by him. Should this sup­
position be verified, and the new taxes proposed for this year be laid and con ­
tinued, an additional $50,000,000 might be expected from internal revenue. The
Secretary has, however, thought it wiser to name $300,000,000 as all that would
probably be realized.

NATIONAL BANKS OF THE UNITED STATES.
From the Annual Report o f the Comptroller o f the Currency to the Secretary of
the Treasury.
S ince my last annual report tw o hundred and eighty tw o new banks have
been organized, and one hundred and sixty-eight State banks have been changed
into national ones. O f the one hundred banks last organized, sixty-seven have
been conversions o f State banks, and nearly all the papers now being filed are
for the change o f State banks into national associations.
There are now in existence, under the national currency act, five hundred and
eighty-four associations, which are located in the following States :
In
In
In
In
In
In
In

Maine New-Hampshire
Vermont
Massachusetts Rhode Island
Connecticut
New York VOL. LII.----NO. II.




18 In Ohio 9 In Michigan .
.
.
.
10 In Indiana
.
.
.
.
67 In Illinois
«
2 In Wisconsin
20 In Minnesota
100 In Iowa 10

84
15
34
38
15
4
20

154
In
In
In
In
In
In
In

National Bank» o f the United. States.

New Jersey
.
.
Pennsylvania
- %
Delaware
.
.
Maryland .
.
.
District of Columbia
Virginia
.
.
.
West Virginia .
.

.
.

.
.

.

16
109
i
3
2
l
2

In
In
In
In
In
In

[February,

Missouri .
.
.
.
Kansas
•
Nebraska Territory Kentucky .
.
.
.
Tennessee
.
.
.
Louisiana .
.
.
.

7
1
I
1
3
1

A detailed statement of the affairs of each bank on the first Monday of Octo­
ber last, with an abstract of the condition of all of them in the aggregate on
that day, is herewith submitted, together with the names and compensation of
the clerks, and the total expenses of the bureau for the fiscal year.
A large proportion of the circulating notes which have been furnished by the
Comptroller was intended to take the place, and is taking the place of the circu­
lation of such State banks as have been converted into national ones, or o f those
whose notes have been voluntarily retired, or have been returned from those
parts of the country in which the notes of the United States and of the national
banks are alone current; so that the currency delivered to the national banks is
not, and will not, be altogether an addition to the paper money of the country,
but rather, to a considerable extent, the substitution of it for that of the State
banks.
The paid-in capital of the banks in the respective States and Territories, the
currency delivered to them, (a considerable portion of which has not been put in
circulation,) and the bonds deposited with the Treasurer to secure their notes,
are as follows:
State.
Maine....................................
New Ham pshire.................
Vermont................................
Rhode Island........................
Massachusetts.....................
Connecticut............................
New Y o r k ...........................
Pennsylvania........................
New Jersey............................
D elaw are................... . . . . . . ___
M aryland............................. . . .
District of Columbia........... ___
V irg in ia ............................... ___
West Virginia....................... ___
Ohio........................................ ____
Kentucky........................ ...... ____
Indiana..................................
Illinois................................... ___
Michigan................................ ___
Wisconsin.............................. ___
Minnesota.............................. ___
I o w a ..................................... ____
Nebraska Territory............. ___
Kansas.................................. ___
Missouri................................ ___
Tennessee.............................. . . . .
Louisiana.............................. ___
Total.............................. ___

Capital stock paid in.

300,000
1,560,000
600,000
95,025
206,950
10,035,165

00
00

Circulation.
$1,887,880
552,700
1,311,800
414,000
12,536,850
4,084,050
12,584,950
10,183,830
1,756,170
200,000

26
25
00
00
00
00
00
00
00
00
00

1,245,000
477,000
95,000
140.000
7,505,880
162,000
3,148,400
3,396,560
797,800
774,500
442,000
945,900
27,000
49,000
722,000
234,380
180,000

$108,964,597 28

$65,864,650

00

00
00

86
200,000 00

4,201,671
4,147.837
1,065,090
1,040,277
690,000
1,215,000
40,000
100,000
1,621,530
840,000
500,000

Bonds.
$2,244,500
944,000
1,636,000
560,000
16,888,650
4,525,500
14,064,600
14,964,100
2,011,000
250,000
1,400,000
534,000
112,000

230,000
8,749,850
184,000
8,924,100
3,794,600
943,500
903,050
603,000
1,092,000
30,000
55,000
865,000
263,000
200,000

$81,961,450

It is, perhaps, to be regretted that so many new banks have been organized in
States where, before the passage of the act, there was no deficiency of banking
capital. There would have been less cause for apprehension that banking capi­
tal in any of the States was being too rapidly increased, if, by suitable legislation




1865.]

National Banks o f the United States.

155

of the States, State banks had been sooner authorized to avail themselves of the
benefits of the national currency act, and the managers o f banks, where the
necessary legislation had been obtained, had more promptly discerned the inevi­
table tendency of the public sentiment, and eo-operated with the government in
its efforts to nationalize the bank note circulation of the country. It was not
the intention of the originators and friends of the system, nor has it been the
policy of the Comptroller, to swell, through the instrumentality of the national
banks, the volume of paper money. On the contrary, the system was designed
to check over-issues, by requiring ample security for every dollar which should
be put into circulation ; and it has been the aim of the Comptroller so to admin­
ister the law as to prevent, instead of encouraging, an unhealthy and dangerous
expansion of credits.
*
*
*
*
*
*
*
*
*
Of course this system depends for its success upon the maintenance of the faith
and credit of the nation, which, in their turn, depend upon the preservation of
the national integrity. I f these fail, the national banking system will fail; but
it will go down with all other important interests, and will be but a part of the
general wreck. That such a calamity is not in store for us is the confident hope
and belief of all true men of the loyal States. The anxieties and apprehensions
which have existed heretofore on this point are rapidly disappearing, a3 the loyal
mind of the United States has hardened to the inexorable resolution that the
Union shall be preserved, and the public credit shall be maintained, no matter
what sacrifices and burdens the execution of this resolution may involve.
I t is a common objection to the national banking spstern, on the part o f some
who favor a national curreucy, that it will deprive the government o f the privi­
lege it might safely use, and the field it might profitably occupy, by the continu­
ed circulation o f its own notes. W h y, it is asked, should Dot the government
drive out o f circulation all bank notes, and continue to issue, as it has done since
the commencement o f the war, its own notes, and thus save the interest which
otherwise will go to the banks? In answer, I would remark :

The banking interest in the United States is an important on e; it has grown
with the business of the country, and has been largely instrumental in developing
the national resources and in increasing the national wealth. Banks of issue,
badly and dishonestly as many of them have been managed, and disastrous as
have been the failures which bad management and dishonesty have produced,
have still been of unquestionable advantage to the people. The capital of the
country has been largely, and in good faith, invested in them, aud thousands of
stockholders depend upon the dividends upon their bank stock for support. It
is an interest which has stood by the government in its struggles with a gigantic
rebellion ; and now, when it is indispensable that the government should control
the issues of paper money, there has been created a national banking system, not
to destroy the State banks but to absorb them, and that, too, without prejudice
to their stockholders.
Governments should not be bankers. None has existed which could be safely
trusted with the privilege of permanently issuing its own notes as money. Cir­
culating notes have been issued under peculiar circumstances by other govern- ments, as it is now being done by that of the United States; but the judgment
of the world is against it as a permanent policy, and nothing but an overpower­
ing public exigency will at any time justify it. Under popular institutions like
ours, no more dangerous, no more corrupting power could be lodged in the hands
of the party in possession of the government; none more perilous to official pro­
bity and free elections. Give to a party dominant in the legislative and executive
branches of the government the authority of issuing paper money for the purpose
of furnishing the country with its currency, subject as it would be to no restraint
but its own pleasure, and what guaranty would there be that this authority
would be honestly and judiciously used ? If there were no risk in the prepar- .
ation of the notes, and checks were provided to make fraudulent issues an impos-.
sibility, the power of issuing government promises as a circulating medium is too




156

National Banks o f the United States.

[February,

dangerous a one to be conferred upon any party, except under extraordinary
circumstances.
«
The present issue of United States notes as lawful money, and the decisions of
the courts sustaining the constitutionality of the issue, have been justified by the
consideration that under a great public necessity, when the nation’s life is in
peril, policies must be framed and laws must be interpreted with a view to the
preservation of the government. This is the paramount consideration to which
all others must bend. Whatever opinions may have been, in times past, enter­
tained in regard to United States notes, and the expediency as well as the con­
stitutionality of the law making them a legal tender, there are now, I apprehend,
very few intelligent persons who are not persuaded that without these notes, and
the character of lawful money given to them by Congress and confirmed by the
courts, the credit of the nation would have given way at the very outbreak of
the rebellion. When the war has been concluded, and the exigency which made
the issue of government notes a necessity has ceased to exist, there will be very
few to advocate the continued use of them on the ground of economy.
If, however, there were no objections of the kind alluded to, there are other
objections to the permanent issue of circulating notes by the government, which
must be apparent to all who have considered the object and uses of a paper currency.
Paper money has been found to be useful, or rather an absolute necessity in all
commercial countries for the convenient transaction of business, and as a circu­
lating representative of values too large to be represented by coin. Although
the fruitful cause of great evils, by reason of its unregulated use, and of its un­
certain and frequently deceptive character, the general utility of it can hardly be
questioned. Now, what is needed in a paper circulating medium is, that it
should be convertible into coin ; that it should be sufficient in amount to answer
the purposes of legitimate business; that it should not, on the one hand, by
being over-issued, encourage extravagance and speculation, and give an artificial
and unreliable value to property ; nor, on the other hand, by being reduced be­
low the proper standard, interrupt business and unsettle values. It should be
supplied to just the extent of the demands of a healthy trade. It should be in­
creased as the regular business of the country may require its increase, and be
diminished as the proper demand for it is diminished.
It is not pretended that banks of issue have furnished this kind of circulation.
Bank notes, with few exceptions, have been convertible into coin when there was
no demand for coin, and inconvertible when there was. They have, too gener­
ally, been issued for the exclusive benefit ef the bankers, and not for the conveni­
ence of the public, and they hare encouraged speculation, when their true mission
was to facilitate trade. It has been the bane of a bank-note circulation, that it
has been expanded by the avarice of the bankets, and contracted by the distrust
that over issues have created.
Now, this objection to a bank-note circulation applies with much greater
force to government issues. There is always inducement enough for banks to
keep up a full circulation, and against excessive issues there are the restrictions
o f law and the liability to redeem. Government notes, in the issue thereof,
would be regulated only by the necessities of the government or the interests of
the party in power. A t one time they might be increased altogether beyond the
needs of commerce and trade, thereby enhancing prices and inducing speculation;
at another, they might be so reduced as to embarrass business and precipitate
financial disasters. They would be incomparably worse in this respect than a
bank-note currency, because the power that should control circulation would be
the power that furnishes it. Supplied by an authority not in sympathy with
trade, they would not be accommodated to the requirements of trade. They
might be the fullest in volume when there was the least demand for a full circu­
lation, and the most contracted when there was a healthy demand for an increase.
They would eventually become an undesirable circulation, because there would
be no way in which the redemption of them could be enforced; they would be a




1865.]

National Banks o f the United States.

157

dangerous circulation, because they would be under the control of political par­
ties ; an unreliable circulation, because, haying no connection with trade and
commerce, they would not be regulated by their necessities.
There are objections to all kinds of paper money; but, in some form, it is a
commercial necessity, and no form has yet been contrived so little objectiouable
as that which is authorized by the national currency act. Under this act the
government performs its proper functions by exercising one of its constitutional
powers for ths regulation of commerce, by fixing the maximum of bank-note cir­
culation, securing its solvency, and giving to it nationality of character and uni­
formity of value. It takes the promises, which are to go among the people
through the national banks, put its seal upon them, and guarantees their redemp­
tion, as it takes the precious ore from the mines— the property of individuals—
coins it into money of the United States and fixes the value thereof. It thus
performs the proper offices of government In doing so it interferes with no
State rights, meddles with no man’s lawful pursuits. It stands between the
bankers and the people, and while it protects the latter from imposition in the
use of a bank-note currency, it trespasses upon no privileges of the former.
Without becoming a banker, and without, as in the case of the charter of the
United States Bank, conferring peculiar if not dangerous privileges upon a
single corporation, it provides a national circulation, indispensable for its own
use and safety in the collection of its internal revenues, and suited to the circum­
stances of the country.
But while the national currency act is restrictive in its general provisions, and
is expected, when generally adopted, to prevent expansions, there is stilf danger
that too much capital will be invested under it during the suspension of specie
payments, and in the existing unsettled condition of our political and financial
affairs. When money is plenty, and fortunes are being rapidly acquired, the
country is always in a feverish and unhealthy state. This is especially true at
the present time. The enormous expenditures of the government, and the great
advances in prices since the commencement of the war, have made many persons
suddenly rich, and, upon fortunes suddenly acquired, have followed reckless ex­
penditures, extravagance, waste. Speculation is taking the place of sober and
persevering industry, and thousands are deluded with the notion that the wealth
of the nation is being increased by the increase of its indebtedness. The inau­
guration of a new system of banking, under such circumstances, is peculiarly
hazardous ; and I have been, from the time of my appointment, more apprehen­
sive that too many banks would be organized, than that the system would not
be sufficiently attractive to induce capitalists to become connected with it. The
government is the great borrower. Its obligation compose a large portion of
the discount line of the banks, which are making large profits on government
securities at little apparent risk, and the danger is, that the national banking
system, with all its restrictions, may, during the suspension of specie payments,
and the continuance of the war, add to the plethora of paper money; and that,
when the war is over, the banks, deprived of the existing means of investment
in government obligations, and finding- no legitimate use for their capitals, may
be tempted to use them in encouraging operations that will eventually prove to
be as unprofitable to themselves, as they will be injurious to the country. For
the double purpose, therefore, of keeping down the national circulation as far as
it has seemed possible to do it, consistently with the establishment of the system
throughout the country, and preventing an increase of banking capital that
might hereafter be instrumental in keeping up the inflation and retarding the
resumption of specie payments, or prove unprofitable to its owners, I have felt it
to be my duty to discourage, in many instances, the organization of new banks,
and in more instances to refuse my sanction to the increase of the capital of those
already organized. In doing so, 1 may seem to have exercised a power not war­
ranted by the a c t; but if not sustained by its letter, I have been by its spirit,
and I am willing to let the future decide as to the correctness or incorrectness
of my course.




158

Report o f Postmaster General.

[February,

*
*
*
*
*
*
*
*
*
Some important amendments are required to the act, in order that it should
be fully accommodated to the wants and business of the country.
The provisions in regard to the lawful money reserve, and the distribution of
the assets of insolvent banks, require modification.
I am still of the opinion that the ratesof interest to be charged by the national
banks should be fixed by Congress, and not by the States.
There are too many points at which the banks may redeem their notes. All,
with the exception of those in Philadelphia and Boston, should redeem in NewY ork. The banks ought to be compelled by law to retain a part, if not all the
coin received by them, for interest on their gold-bearing bonds, in order that
they may be prepared to lend their influence in favor of a return to specie pay­
ments ; and some provisions should be introduced by which, when specie pay­
ments are resumed, excessive importation of goods may be checked, and danger­
ous exportations of coin may be prevented.
It is of the greatest importance that the national currency system should be
independent of politics and freed from political influences. To effect this, and
to facilitate the business of the banks with the Comptroller, I am clearly of
opinion that the bureau should be made an independent department, and removed
from Washington to Philadelphia or New-York.
I do not, however, recommend that any amendments be made by the present
Congress. The act will do well enough as it is for another year. When the
next Congress assembles, the defects in it will be better understood, by the prac­
tical working of the system, than they can be at the present time. The act can
then be taken up, and, with the light which the experience of another year has
thrown upon it, judiciously amended.

REPORT OF POSTMASTER GENERAL.
postal revenues for the year ending the 30th June last were
$12,438.253 78, and the expenditures of this department during the same period
were $12,644,786 20, showing an excess of the latter of $206,532 42
The increase of expenditures in 1864, compared with those of 1863 is I l f per
centum, and the increase in the revenues for the same year I l f per cent.
This exhibit promises an increase of the revenues for 1865 over the estimate
submitted in the report of last year.
During the fiscal year 334,054,610 postage stamps, of the value of $10,177,327 :
26,644,300 stamped envelopes amounting to $765,512 50 : and 1,574,500 news­
paper wrappers amounting to $31,490, were issued. The total value of these
issues was $10,974,329 50, which compared with the issue of the previous year,
(10,338,760) shows an increase of $635,569 50, or about six and one-eight per
cent. The value of the stamps, and stamped envelopes sold was $10,776,589 58,
and the amount used in the prepayment o f postage was $9,878,155 61.
Notwithstanding the advance o f every article used in the manufacture of stamps,
and the large increase in the number required by the department, the National
Bank Note Company, of New York, have fulfilled, in a satisfactory manner, all
their obligations.
The length of routes in operation 30th June last was 139,173 miles, and the
service as follows, v iz.: Railroad, 22,616 miles; steamboat, 7,278 miles; “ ce­
lerity, certainty, and security,” 109,278 miles— costing $5,818,469, divided as
follows, viz.: Railroad, 23,301.942 miles of transportation at $2,567,044,about
11 cents a mile ; steamboat, 2,112,134 at $253,274, about 12 cents a mile ;
“ celerity, certainty, and security,” 30,901,281 at $2,998,151, about 9 7-10 cents
a mile.
Under an advertisement dated March 22, 1864, inviting proposals for service
from Atchison, Kansas, or St. Joseph, Missouri, to Folsom City, California.
T he




1865.]

Report o f Postmaster General.

159

ohn
H . H e i s t a n d , of Lancaster, Pennsylvania, was the lowest bidder, at
$750,000 per annum ; but his bid having been subsequently withdrawn,
contracts have been made with B e n . H o i x a d a y , of New York, for the
service between Atchison, or St. Joseph, and Salt Lake City, at $365,000,
and with W m. B. D i n s m o r e , President o f the Overland Mail Company,
also of New York, from Salt Lake City to Folsom City, at $385,000, mak­
ing an aggregate $750,000 per annum. These parties are believed to be able
to fulfill their obligations. The contracts are from October 1, 1864. to Septem­
ber 30, 1868 ; the trips to be made in sixteen days eight months in the year, and
in twenty days the remaining four months ; to convey through letter mails only,
mail matter prepaid at letter rates, and all local or way mails.
Paper and document mails for the Pacific coast are to be carried by sea, via
New York and Panama, temporary arrangements having been made for their
conveyance, within the sum named in the law of March 25,1864, viz : $160,000
per annum, making the whole expense of territorial and Pacific mails not over
$910,000 per annum, or $90,000 less than under the former contract.
In this connection it is proper to add that, from information which has recently
reached me, I am apprehensive that the postal service in the Pacific States is
not in as good condition as should be desired ; and I may have occasion to com­
municate with Congress upon the subject during its approaching session.
Inquiry ha3 been made of Lieutenant-General G r a n t relative to the existing
arrangements for supplying our armies with mails, with the assurance of my
earnest purpose to co-operate with him in carrying into effect any desired im­
provements of that service ; and I am gratified to learn, from his reply, that the
system of receiving and forwarding mails now in operation is entirely satisfac­
tory ; and that “ our soldiers receive their mail matter with as much regularity
and promptness as is possible for armies in the field; and with perhaps as much
celerity and security as the most favored portions of the country.
The aggregate postage (sea, inland, and foreign) upon the correspondence ex­
changed with Great Britain, Prussia, France, Hamburg, Bremen, and Belgium,
amounted to $1,399,605 69, being an increase of $174,930 48, as compared with
the last year, and $21,458 37 in excess of the largest amount realized in any pre­
vious fiscal year. The collections in this country amounted to $881,730 68, and
in Europe to $517,875 0 1 ; excess of collections in the United States $363,855 67.
This result is significant and gratifying, showing a largely increased correspon­
dence with Europe, notwithstanding the civil troubles agitating the country, and
the interruption of postal communications with the Southern States.
The amount paid by this department for mail steamship service to and from
Europe was $371,740 44— the steamships employed receiving the sea postage on
the mails conveyed as compensation for the service. Of this amount the Liver­
pool and New York and Philadelphia Steamship Company received $202,914 34
for fifty-two outward and fifty-three inward trips between New York, Queens­
town, and Liverpool; the Canadian mail packets, $77,175 30 for fifty-three
round trips between Portland and Liverpool and Quebec aud Liverpool; the
, North German Lloyd Steamship Company, $16,149 61 for sixteen outward and
fifteen inward trips, and the New York and Hamburg Steamship Company,
$45,501 18 for thirteen outward and twelve inward trips, between New York
and Southampton.
The total postages on the correspondence exchanged with British North
American Provinces during the year amounted to $307,371 39, being an increase
of $81,628 09 over the amount reported last year, and $129,618 88 over that
for the previous fiscal year.
The total postages on the mails conveyed to and from the West Indies amounted
to $59,990 18, and the cost of transporting the same to and from Havana and
other West India ports was $40,337 03, being $19,653 15 less than the United
States postages on the mails conveyed.
The provisions of the 4th section of the act of June 15, 1860, have not been
construed by this department as requiring the Postmaster General to allow the

J




16 0

N a val Ordnance.

[February»

sea and inland postages on the mails conveyed, to all American vessels, but
simply as limiting the compensation in any case to that amount.
The United States postages upon the correspondence exchanged with Central
and South America, via Aspinwall and Panama, amounted to $14,208 51, all of
which was paid to C o r n e l i u s V a n d e r b i l t for the sea and Isthmus transporta­
tion.
The initiatory steps taken to conclude postal arrangements with the colonies
of Vancouver’s Island and British Columbia, referred to in the last annual re­
port, have not as yet been attended with the success anticipated.
In conformity with the provisions of the act “ to authorize the establishment of
ocean mail steamship service between the United States and Brazil,” approved
May 28, 1864, an advertisement was issued inviting proposals for carrying the
mails of the United States by a monthly line of first class American sea going
steamships, between a port o f the United States north of the Potomac River,
and Rio Janeiro, in Brazil, touching at St. Thomas, in the West Indies, and at
Pernambuco and Bahia, in Brazil, for a contract term of ten years, to commence
on or before the first day of September, 1865, and to date from the day the first
steamship of such line shall leave the United States with the mails for Brazil.
Three proposals were received for this service, the lowest and the accepted bid
being that of the New York, Nuevitas, and Cuba Steamship Company, with
T h o m a s A s e n c i o & Co. and M a n u e l J . M o r a , of New York, as guarantors for
the performance of the required service, at the sum of $240,000 per annum, to
be divided equally between the two governments. The act authorizing the es­
tablishment of this line of American steamships was the beginning of a new era
in the history of our ocean mail service, which is being performed principally by
steamers sailing under foreign flag.
There are other ocean routes besides the one to Brazil, which can be safely
and profitably occupied by American lines of mail steamers, among which the
route between San Francisco, Japan, and China, at present unoccupied by foreign
mail packets, is perhaps the most important in a commercial point of view.
Various considerations render it important that the Pacific routes properly
belonging to us, should be occupied by American mail steamers, the profits of
which with the addition of a small subsidy for the mail service, would justify the
establishment of one or more steamship lines, which would be remunerative to
the proprietors.
The number of dead letters of every description received and examined dur­
ing the year was 3,508,825, being an increase of 958,409 over the preceding
year, attributable mainly to the return of large numbers of army and navy let­
ters which it was found impracticable to deliver.
During the year there were registered and remailed to their respective owners,
as containing money, 25,752 letters, containing an aggregate of $131,611 24, of
which number 20,059 containing $104,665 84, were delivered ; 4,412 letters,
containing $20,485 49, were returned to the department, being addressed chiefly
to soldiers and sailors, and persons trausiently at places of mailing or address.

NAVAL ORDNANCE.
The Chief of the Bureau of Ordnance (H. A . W i s e ) makes an elaborate re­
port to the Secretary of the Navy, setting forth in detail the results of the year
and the experiments made with new inventions. The growing demands of the
navy have been fully supplied ; 1,522 guns of different calibres having been manu­
factured during the year. The present aggregate is notstated in the report. In
the rifled ordnance adopted, no changes have been made, except in the introduc­
tion of a 60-pounder among the Parrotts. This, as an intermediate between the
30 and 100-pounder, has been found of great service as a chase gun, fully sup­
plying the place of the 50 pounder o f Admiral D a h l g k e n ’ s system. It is gener­




1865.]

161

N aval Ordnance.

ally used as a pivot gun, and, as its bore corresponds with that of the army smooth
bore 18-pounder, the round projectile of the latter is always available where high
velocities are needed at close range.
Bronze howitzers and rifles have been introduced, as the special armament of
many transports of the War Department. As a special gun for long range iu
chase, the 20-pounder three grooved rifle is preferred, and it now occupies a
prominent place in the armament of the double-ender vessels.
ARMAMENTS OF SHIPS OF WAR.

The governing rule in arming our ships of war is to furnish batteries of the
very heaviest guns they can bear with safety. Nine-incn guns are generally used
for broadside ; 10 and 11-inch guns and Parrott rifles on pivot; 15-inch guns
for monitors ; and bronze howitzers and rifles for boat and deck service in shore.
A few of our ships continue to be armed with the 32-pounder and 8-inch gun of
the old system, but these will probably give way to the modified guns of similar
classes.
The battery of a first-rate ship of war is forty eight cannon and four howit­
zers, one of the guns being a rifled 150-pounder ; that of a second-rate is twentyfour guns, including two rifled 100-pounders and two howitzers; of a third-rate
ten guns, including two rifled 100-pounders ; of a fourth-rate four guns, includ­
wer o f ships named in the
ing one rifled 20-pounder. The development of tl
iws :
In shot, lbs. In shell, lbs.
2,123
2,606
990
1,220
343
434
183
210
255
294

First rate ..........................
Second rate. . . .

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

Third rate.........................
Fourth rate.........................
a n d .........................

In the monitors :
Tonawanda.........................
Onondaga ...........................
Montauk.............................

1,764
1,180
606

1,320
930
465

588

480

In the Western gunboat:
Oarondelat.........................

These figures express the weight of metal thrown for breaching purposes by
the guns at a single broadside in solid shot or shells. Conjoined with these, how­
ever, are the destructive agencies of grape, canister, and shrapnel, available at
all times iu the general course of naval warfare, but especially when used against
uncovered masses of men. The effective power of a ship is therefore increased
in a very great degree by these auxiliaries, which are common to both rifle and
smooth bores, excepting grape, which is not used in the rifles.
PIVOT GUNS.

The decisive power of the heavy pivot gun, strikingly exemplified in the fight
between the Kearsarge and Alabama, is dwelt upon in the report, and the follow­
ing comment is added :
“ There can be no question with regard to the superiority of the 11-inch guns
over the Blakely 120-pounder and the 68-pounder of the English pivot system,
either iu penetration, smashing effect of the shot, or explosive power of the
shells. Hence, although the vessels were nearly equally matched as to tonnage,
motive power, and number of men and guns, yet the prepondering influence of
calibre, properly disposed in pivot, and coolly and deliberately handled by
American seamen, was sufficient to settle the question briefly and most conclu­




162

Naval Ordnance.

[February,

sively. For the Alabama was sank in a little more than an hour after the
Kearsarge began firing, and the English and French navies were thus taught a
lesson in practical gunnery and seamanship, which they will not soon forget.
“ The result of this action may therefore be taken as proving, beyond doubt,
the wisdom of arming our ships with a mixed battery of pivot and broadside
guns, taking due care to place on board of each ship the heaviest and most power­
ful guns that she can safely carry and manage with ease in all weathers."
QUALITY OF GUNS.

The report claims that it is no idle boast that the cannon of our navy, made
exclusively from American iron, are not surpassed by those of any other nation ;
and this, it is added, “ will continue to be the case so long as the enterprise of
our citizens is left untramraeled. and full opportunities are afforded for the exer­
cise of their skill in this most important art.”
The Fort Fitt foundry, and two others, in South Boston, and Reading, Penn­
sylvania, have taken contracts for making 15-inch guns. Several other foundries
are engaged in making guns of lighter calibre.
EXPERIMENTS.

During the past year experiments have been systematically made, with both
shells and shot, from smooth bores and rifles, o f all the heavier calibres. The
power of the guns belonging to our navy, and in common use in the batteries of
our ships, have been fairly tested against both solid and built up plates, and the
conclusion reached is wholly in favor of the guDS and their solid projectiles— the
spherical shot for smooth bores being, however, immeasurably superior to the
elongated rifle shot in every form. N o manner or thickness of iron or steel armor
that could be carried on the hulls of sea-going ships will resist the impact of solid
spherical shot, fired from the heaviest calibres of the navy, at close range, with
appropriate charges of cannon powder. It was generally accepted an an estab­
lished fact that it was impossible to cast a spherical shot of large diameter which
would be solid throughout. It is now known, however, that it is easy to cast a
15-inch or 20-inch shell which will be perfectly sound and solid from circumfer­
ence to center of figure, and one of the former has resisted, without breaking,
two hundred and twenty-two continuous blows of an eight ton steam hammer.
GUNPOWDER AND NITRE.

The consumption of gunpowder by our squadrons in service, and for experi­
mental practice during the year, required a supply of 1,325,000 pounds of pow­
der and 575 tons o f nitre, 500 tons of the latter being domestic, and supplied
entirely from the. New Haven Chemical Works, the only establishment that has
yet undertaken its manufacture for the navy.
The number of mills engaged in the fabrication of powder for the navy has
been diminished by one since the last report, so that the only present sources o f
supply are the works of Messrs. D u p o n t and those of the Schaghticoke, Hazard
and Union Powder companies. Their product has been quite sufficient to sup­
ply the demand, although frequent explosions have occurred to retard their opera­
tions.
Congress is earnestly urged to make special provision for the encouragement
of the production of nitre.
The establishment and maintenance of a thoroughly organized gunnery ship,
for the training of officers and men in all the details of gunnery, is earnestly re­
commended by the bureau.




1865.]

163

Commercial Regulations.

COMMERCIAL

REGULATIONS.

DECISIONS OF THE TREASURY DEPARTMENT UNDER THE TARIFF ACTS.
T he following decisions have been made by the Secretary of the Treasury, of
questions arising upon appeals by importers from the decisions of collectors, re­
lating to the proper classification, under the tariff acts, of certain articles of
foreign manufacture and production, entered at the ports of New York, Boston,
&c. :—
ORGANZINE SILK, NOT IN THE GUM.

Treasury Department, October 5, 1861.
S ir :

Your appeal, dated September 20,1864, (Mo. 2,369,) from the decision of
the collector at New York, assessing duty, at the rate of 50 per cent ad valorem,
on certain organzine silk imported by you, is received.
Y ou claim “ that the article is subject to only 35 per cent duty ad valorem,
as being an unmanufactured article.” “ The organzine silk in question has been
washed only, and is in nowise a manufactured article.”
The experts of the customs report, in substance, as follows : The article refer­
red to is organzine silk not in the gum ; it is a manufacture of silk, and is there­
fore properly classified as a manufacture of silk not otherwise provided for, and
liable, under the 8th section of the act of June 30, 1864, to 50 per cent ad val­
orem duty.
The decision of the collector is hereby affirmed.
I am, very respectfully,
W . P . F essen den .
Secretary of the Treasury.
To B. Gr. W a i n w r i g h t , Esq.,
Post Office Box, 747 New York City.
k r u p t ’s

cast-steel

t ir e s

,

axles

,

sh a fts

, & e.

Treasury Department, October 6, 1864.
S ir :

Messrs. T h o m a s P r o s s e r & S o n have appealed from your decision assessing
duty, at tne rate of 45 per cent ad valorem, under the 43d subdivision of section
3 of the act approved June 30, 1864, on certain articles designated as “ Krupt’s
cast-steel tires, axles, shafts, and other fogings in the rough.”
The appellants claim to enter them as “ steel in any form, not otherwise pro­
vided for, thirty per cent ad valorem,” as provided for by the 33d subdivision of
section 3. act approved June 30,1864.
For the reasons given in the decision of this Department under date of Decem­
ber 23,1863, on the appeal of Messrs. P a g e , R i c h a r d s o n & Co., I am of the
opinion that your decision in assessing duty on the importation of Krupt’s caststeel tires, &c., at the rate of 45 per cent, was proper, and it is hereby affirmed.
I am, very respectfully,
W . P . F

essen den

,

Secretary of the Treasury.
To

S

im e o n

D

, Esq.,
Collector, New Y ork.

r a pe r




164

[February,

Commercial Regulations.
LOOMS AND SHUTTLES.

Treasury Department, October 10,1864.
S ir :
J o h x W . S t e a r n s has appealed from your decision assessing duty, at the rate
ol 45 per cent ad valorem, on certain Looms and Shuttles imported by him in
the steamer “ Heela,” from Liverpool, and claims that, whilst the latter are pro­
perly assessed— being composed partly of steel— at 45 per cent, the former, being
iron, are liable to only 35 per cent under the provision in the 3d section of act
approved June 30, 1864, as follows : “ On all manufactures of iron not otherwise
provided for, thirty-five per centum ad valorem.”
The appraisers report as follows : “ W e regard the steel portion (the shuttles)
as an indispensable appendage to the loom, which is the machinery referred to ;
and therefore, although contained in separate packages, or, as in the present case,
contained in the same package with the loom, but separately charged for on the
invoice, must be deemed a component part of the manufacture, clearly rendering
the manufacture of the machine complete, subject to the provision of the existiug tariff above quoted, viz : ‘ On all manufactures of steel, or of which steel
shall be a component part, not otherwise provided for.’ ”
1 do not concur with the appraisers in their special report, in which they claim
that although the machine known as a loom is not a manufacture of which steel
is a component part, yet the shuttle, which is an accessory machine, a machine
per se. being composed partly of steel, renders the whole importation a manufac­
ture of steel in part, and subjects it to 45 per cent. duty.
The Department, in analagous cases, where the classification of different arti­
cles in the same package could be easily determined, has directed that the rate
of duty applicable to each perse should be separately levied.
1 am advised that the opinion here expressed is iu accordance with the views
entertained by you on the subject.
You will please have the entry adjusted accordingly.
I am, very respectfully,

W . P. F

essen d en ,

Secretary of the Treasury.
To

Esq.,
Collector, New York.

S im e o n D r a p e r ,

STAVES, ETC.

Treasury Department, October 11, 1864.
S ir :— Messrs. Sherman & W ibirt have appealed from your decision assessing

duty, at the rate of 10 per cent, ad valorem, under section 6, A ct of July 14,
1862, “ as staves for pipes, hogsheads, or other casks,” on certain roqgh staves
imported by them from Canada.
The appellants claim “ that these staves are exempt from duty under the reci­
procity treaty with Great Britain, being included in 1schedule of articles free of
duty,’ in article 3 of said treaty, under the head o f timber and lumber of all
kinds, round, hewed, and sawed, unmanufactured in whole or in part.”
In the regulations (article 921) under the reciprocity treaty between the
United States and Great Britain, concluded June 5,1854, it is provided that
“ articles of wood entered under these (timber and lumber) or any other designa­
tions, remain liable to duty under the existing tariff, if manufactured in whole or
in part by planing, shaving, turning, splitting, or riving, or any process of manu­
facture other than rough-hewing or sawing.”
It is admitted by the appellants that the articles in question are split, and con­
sequently they are clearly embraced in the provision just quoted. Similar ap­
peals have been made to the Department, and the action of the Collectors has
been uniformly affirmed. I see no reason for changing the practice.




1865.]

165

Commercial Regulations.

Your decision is affirmed in the case3 of Sherman & W i birt as presented in
their appeals dated and numbered respectively September 9 and October 4,
1864, (Nos. 2,362 and 2,377.)
I am, very respectfully,
W .

To

S

im e o n

D

r a pe r

F .

F

essen den

,

Secretary of the Treasury.
Esq., Collector, New Y ork.

,

CAM ERA

T U B E S — M A N U FA C TU R E S

OF G L A S S .

Treasury Department., .October 17,1864.
S

ir

:

Messrs. B. F r e n c h & Co. have appealed (No. 2,387) from your decision
assessing duty at the rate of 40 per cent ad valorem, under the last subdivision
of section 9 of the act approved June 30, 1864, on certain “ Camera tubes”
imported by them,— as a manufacture of which glass is a component material.
The article is a brass tube, fitted with lenses, and an adjusting screw, and is
part o f a photographer’s camera.
The appellants contend that the article in question is provided for under the
clause of 13th section of tariff act of July 14, 1862, imposing a duty of 35 per
cent ad valorem on “ manufactures, &c., not otherwise provided for, of
*
*
brass
*
*
or other metal, or of which either of these metals, or any
other metal, is the component material o f chief value.”
This provision is not a specific provision for “ camera tubes
they are still
non-enumerated. As the tariff stands, the article is as well described by the
language of one section as the other; the classification is therefore determined
by the provisions of the 20th section o f act o f 1842, assessing duty on nonenumerated articles at the highest rate of any of their component parts.
Your decision is hereby affirmed.
I am, very respectfully,
G

To J . Z.

G

o o d r ic h

eo

. H

a r r in g t o n

,

Acting Secretary of the Treasury.
Esq., Collector, Boston, Mass.

,

O L IV E

O IL , IN

C A SK S.

Treasury Department, October 18, 1864.
Sir :

Messrs. M a g u i n , G u e d i n & Co. have appealed (N o. 2,384) from your deci­
sion assessing a duty of one dollar per gallon on certain “ olive oil in casks ”
imported by them per ship “ Romaine” from Marseilles, and claim that olive oil
in casks should not be returned as salad oil, unless it is a very superior and costly
article, such as is sent in bottles or flasks, exclusively for salad use, and further
claim that their importation in question is liable to only 25 cents per gallon
under the.-5th section act July 14, 1862, which imposes that duty on “ olive oil,
not salad.”
In the act approved June 30, 1864, 11th section, a duty o f one dollar per
gallon is imposed on olive oil in flasks or bottles, and salad oil.
The experts of the customs, to whom the subject was referred, report sub­
stantially as follows:
Whether olive oil is salad oil or not, depends upon the quality, and not whether
it is imported in casks, or in any other manner. The olive oil in question is of
such a quality, which, in our judgment, clearly renders it salad oil, and liable to
the duty of oue dollar per gallon under section 11 of the act of 1864.
Your decision is hereby affirmed.
I am, very respectfully,
G

To

S

im e o n

D

r a pe r




,

eo

. H

a r r in g t o n

,

Acting Secretary of the Treasury.
Esq., Collector, New Y ork.

The Marine Insurance Companies f o r 1864.

166

CLAY

[February,

PIPES.

Treasury Department, October 19,1864.
S

ir

:

Messrs. I. H a m b u r g e r & Co. have appealed (No. 2,389) from your decision
assessing duty, at the rate of 75 per cent ad valorem, and
per gross on
certain clay pipes imported by them per ship “ Victoria ” from London, and
claim that they should be admitted at 35 per cent ad valorem, under the clause
in section 13, act June 30, 1864 v iz .: “ on pipes, clay, common or white.”
The articles in question are colored clay pipes, and white clay pipes, with India
rubber bands at the tip, and are not the articles known and commercially recog­
nized as “ common” or “ white clay ” pipes, being advanced beyond the “ com­
mon ” condition by quality and coloring, and by the addition of India rubber
bands, which the “ common or white clay pipe ” does not exhibit.
The article is therefore provided for in the same section (13) of the act of June
30. 1864, in the clause “ on meerschaum, wood, porcelain, lava, and all other
tobacco smoking pipes, and pipe bowls, not herein otherwise provided for, one
dollar and fifty cents per gross, and in addition thereto seventy-five per centum
ad valorem.”
Your decision is hereby affirmed.
I am, very respectfully,
W . P . F essen den ,
Secretary of the Treasury.
To S i m e o n D r a p e r , Esq., Collector, New York.

THE MARINE INSURANCE COMPANIES FOR 1S64.
T he success of insurance business the past year is almost beyond precedent.

With regard to marine insurance, one, knowing tne effect of the war on our
commerce, would have anticipated a very different statement, since small busi­
ness aud large losses would naturally follow in the wake of the rebel privateers.
Just the contrary of this, however, has been the result, for never have the earn­
ings and dividends been larger.' If, for instance, we take the returns of the fol­
lowing leading marine companies in this city, (we omit those also taking fire
risks,) to wit, the Atlantic, Great Western, Columbian, Mercantile, Commercial,
Sun, Orient, New York, Mutual, aDd three others, we will find that the aggre­
gate amount of premiums received during the year by these companies doing
marine business alone to have been about §29,000,000—a large sum even in these
davs of large figures. This interest, too, has increased immensely within a few
years. It seems but a day since the Columbian advertised a capital of only
§500,000, while now its assets are about §6,000,000, and steps are being taken
to add a million and a-half more to its capital. The Great Western has also
met with wonderful success, increasing its assets largely, and making a statement
of its business for the past year, which certainly shows unusual prosperity. As
to the Atlantic, it holds its old place. Probably there is no marine office in the
world which transacts the business every year that is done there.
But besides these companies doing only marine business, there are others which
issue both fire aud marine policies, as, for instance, the Metropolitan aud Harmony.
More than a million dollars have been received in marine aud fire premiums by
the Metropolitan during the past year, and it has just declared a dividend of ten
per cent to its stockholders, aud a scrip dividend of fifty per cent to its profit
sharing patrons. Ily enterprising and judicious management it has been enabled
duriug the twelve months just past to double its business and largely increase its
assets.
W e think our merchants may truly congratulate themselves on their continu­
ally improving facilities for marine insurance.




18 65 .]

The Book Trade.

THE

BOOK

167

TRADE.

Diary o f Mrs. Kitty Trevylyan: A

S t o r y o f t h e Times o f W h i t f i e l d a n d t h e
By the author of “ Chronicles of the Schouberg-Cotta Family,” etc,
with a Preface by the author for the American edition. New York: M. W. D o d d !
506 Broadway.
W

esleys.

W e are rejoiced that the authoress of the Schonberg-Cotta Family is adding a new
luster to her reputation by this last work. The whole reading world gave a sigh o f
disappointment when the “ Early Dawn ” succeeded the inimitable “ Chronicles,” not
because it lacked merit or interest, but because it fell so far short o f its predecessor
in these two qualities. The “ Diary of Mrs. K i t t y ,” however, is fully equal to that
of*ELsiE and F e i t z in all that is natural, simple, and charming. The period in which
it is written, too, is one of hardly less interest than that of the reformation, being a
time o f great religious controversy and change, when the preaching of W h i t f i e l d and
the W e s l e y s stirred all England to its hearts core. The style is exceedingly pleasant,
and the characters most life-like, but the chief power of the book, after all, lies in the
exquisit humor with which the religious eccentricities o f doctrines and people are
shown up, and in that higher attribute which discerns and reveres a pure religious faith,
in whatever nation or age or sect it may be found. Men would be wise to remember
what this little book so beautifully teaches, that while names divide and doctrines
repel, the one hope and one faith of every truly Christian heart forms a tie that is
drawing them all together into a closer brotherhood, and welding them more surely
into a unity that is indissolable and eternal.
We give below two extracts from the “ Diary,” not as the best that can be gleaned
from it, but as fair specimens of its style and spirit. Aunt H e n d e r s o n is a follower
of J o h n W e s l e y , and a stout champion for his doctrine o f perfection, which, perhaps
becomes somewhat exaggerated, like other doctrines, as it travels the further from
the original source. Having combatted in vain Scotch Aunt J e a n i e and English Mrs
T k e v y l y a n , she suddenly makes a master stroke, and holds up her two opponents as
the proofs of her argument:

“ K i t t y , my dear, your mother and aunt J e a n i e are the best women I know. They
are as good examples of perfection as I ever wish to see. They may argue against
the doctrine as much as they like, but they prove it every day of their lives. You
understand, my dear, the W e s l e y only argues for Christian, not for Adamic or Angelic
perfection. He admits that even the perfect are liable to errors o f judgment, which
your poor mother also proves no doubt, by her little bigotry about the church, and
aunt J e a n i e by two or three little Presbyterian crotchets.”
We cannot refrain from gving our readers a piece o f B e t t y ’ s mind, for B e t t y is the
character o f the book, a faithful old tyrant, a s trenchant as she is trusty, and not to
be slighted for fear o f unpleasant results. She declares herself to be quite above all
superstitions, but at the same time she is brim full o f the most doleful signs and
tokens, and quite disgusted because events dont carry them out. A t last, however,
B e t t y coming down in the dusk, and going into the dairy, fell over the stablebucket, which K o o k a had l e f t in the way, and broke her leg. The Falmouth doctor
came at once aud set it, and says it is not at all a difficult or serious case.
But B e t t y , never having had an illness which prevented her from moving about, in
her life, grimily sets the cheery doctor at defiance, and takes it for granted that she is
dying.
" And its a comfort to me Mrs. K i t t y ,” she said to me this evening, “ to think I am.




168

[February,

The Book Trade.

It’ll be a warning to R o g e r as long as he lives, that’s one thing; for if I’ve-told him
once about leaving that bucket in the way, and said it would be the death o f some
one, I’ve told him so scores of times; and now he’ll see that I told him the truth.
That is one thing Mrs. K i t t y ; and another is the signs and the tokens. They’ll all
be made plain.”
*
*
*
*
*
*
*
*
*
*
*
“ Rut B e t t y ,” I said at last, “ it is no better than the heathens to heed such fancies.
*We must open our hearts wide to the Bible, and let the light o f the truth and the
breath of the spirit shine and search through every corner. What are all the forebod­
ings in the world to one hour of hearty prayer ? Remember, prayer was stronger even
than S t . P a u l ’ s forebodings; for he said he perceived that the voyage would be with
much hurt and damage, not only of the ship, but also of their lives. Yet, afterwards,
when he had fasted and prayed, he stood forth and said that God had given him the
lives o f all that were in the ship; and though the ship was wrecked, not one life was
lost.”
“ T h e r e b e s o m e p r a y e r s ,” s a id B

“ And
B

etty,

etty,

“ t h a t c a n m o v e h e a v e n a n d e a r t h .”

p r a y e r w a s s t r o n g e r th a n p r o p h e c y o n c e ,”

b u t o f a p o o r s in fu l h e a t h e n c it y .

I s a id , “

N in e v a h w a s

n o t th e p r a y e r o f an a p o s tle ,

sa v e d , le t

J

onah

be

d is a p ­

p o i n t e d a s h e m i g h t a t h i s w o r d s b e i n g s e t a s id e .”

“ Well Mrs. K i t t y ,” said B e t t y dryly, “ I hardly take it kind of you to put me down
with that poor selfish old Jew. I ’ve thought, many a time, it was as wonderful the
Almighty should speak by him as by Balaam’s ass— running away from his work,
nearly sinking the ship and the sailors, and then sulking and creusling like a spoilt
child, because the Lord was more pitiful than he, and the poor sinful men and women
of that great city, and the poor harmless dumb beasts were spared. I can’t say but
1 do feel hurt to be likened to him.”
“ B
*

e t t y ,”

*

s a id I , “ y o u k n o w I n e v e r m e a n t t o c o m p a r e y o u t o t h e
*

I w an t y ou to h op e B

etty,

prophet

b e ca u s e th e m o r e w e h o p e th e

J

onah.

b e tte r

I

th in k w e p r a y .”

“ Well m y dear,” s a id B e t t y relaxing, “ young folks most times find it easy enough
to hope. If the sun shines for an hour, they think there’ll never be winter again; and
if old folks don’t keep their wits about them, where’ll the fire wood be when winter
comes ?
“ And Mrs. K i t t y my dear, I meant no disrespect to the Prophet J o n a h ; poor fear­
ful soul he had his troubles sure; and if I’d been in his place I won’t say I mightn’t
have been worse than he, although I do hope the Almighty would have kept me
from caring for some poor bits of leaves, that grew up like mushrooms in anight, just
because they made me cool, more than all the people in that great town, especially
the innocent babes and the dumb beasts.”
W e might, indeed, fill pages with pieces o f Mrs. B e t t y ’ s mind, but we refrain, feel­
ing sure that our readers will be satisfied with nothing less than the whole of the
“ Diary of Mrs. K i t t y T r e v y l y a n .”

C O N T E N T S

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
32.
13.
14.
15.
16.
17.
18.
19.

O F

F E B R U

A R Y

N U M B E R .

Petroleum : Its Location and Production. BylRATAYLER...................................................

89
National Savings and National Taxation. No. II...................................................................... 97
Commercial Law.—No. 18. Bankruptcy and Insolvency........................................................... 100
The Bank of the Netherlands.......................................................................................................... 106
Commercial Chronicle and Review......................................................- .......................................... 110
Trade and Commerce of the Port of New Y ork ............................................................................117
Journal of Banking, Currency, and Finance....................................................................a ........... 128
(irain Trade of the Upper Lakes..................................................................................................... 132
Statistics ol Trade and C om m erce.................................................................................................. 133
Railway News ................................................................................................................................... 144
The Extinguishment o f the Scheldt D u e s ..................................................................................... 145
The Commercial Failures in 1864.................................................................................................... 146
Report of the Secretary of the Treasury........................................................................................ 148
National Hanks of the United States............................................................................................. 158
Report of Postmaster General...................................................
158
Naval Ordnance....................................................................................
160
Commercial Regulations.................................................................................................................. 108
The Marine Insurance Companies for 1864 .................................................................................... 166
The Book Trade......... ...............................
167