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THE
MERCHANTS’ MAGAZINE
AND
COMMERCIAL REVIEW.
FEBRUARY,
1 8 6 6.
OF TIIE BALANCE OF TRADE.
BY O. H. CARROLL.
In our zeal to maintain the principle of human freedom, we must not
overlook important errors which are being extensively advocated, and bid
fair to become permanently a part of the government policy. One of these
is the doctrine of the “ balance o f trade” teaching that an excess in the
currency value of exports over imports, is an aggregate of commercial
balances of account against foreign countries; while an excess of imports
over exports is an aggregate of commercial balances in favor o f foreign
countries. The former, it is argued, should be increased, and the latter
prevented as much as possible by legislation. Hence We find a high tariff
maintained with the view of checking imports.
Yet, if this method of calculating increasing wealth is reliable for a na
tion, why is it not equally reliable for an individual ? I f the nation gets
rich by parting with more value than it receives, why should not the in
dividual get rich whose expenditure exceeds his income ? The philosophy
of the balance of trade, as set forth by its advocates, comes to this ridi
culous conclusion, that a cargo exported, costing $100,000 according to
the Custom-house records, which returns only $80,000 in the imports,
gives a national gain of $20,000. What does the merchant owner think
about it? By the same rule were the cargo sunk in the ocean, it being
an excess of exports altogether, it must be reckoned as $100,000 clear
profit to the country !
One of the advocates of this doctrine states that he finds the balance
of trade in favor of the United States in the excess of exports for a series
of years to be as follows:
1854-55 .............................
1855-56 .............................
1856-56..............................
1857-58..............................
1858-59..............................
1859 60..............................
1860-61..............................
1861-62..............................
1862-63..............................
Total excess of exports
Total exports.
$275,156,846
326,964,908
3(12,960,682
324,044.421
856,789,462
400,122,296
410.856,818
229,790,280
331,809,459
Total imports.
. $261,468,520
314,639,942
360,890,141
282,613,150
838,768,130
862,163,941
352,075,535
205,819,823
262,187,587
Excess of exp’ts.
$13,688,326
12,324,966
2,070,541
42,OS1,271
18,021.332
37,958,355
58,881,283
23,970,467
79,621,872
$288,568,403
90
O f the Balance o f Trade.
[February,
After giving this table, the writer encourages the country with the con
sideration that “ the scale of excess of exports established in 1854-55,
rises gradually and steadily to 1863. Its average for the last two years,
the worst of the war, is $51,800,000 each year. Its average for the two
years preceding the war, 1858-59 and 1859-60, was $28,000,000 each
year only.” This statement includes the mutual exchanges of gold. And,
being desirous to make the largest admissible exhibit of the excess of ex
ports, he repudiates the idea that the paper prices of exports affect the
result, and furthermore maintains that the export commerce is habitually
returned short; the inference being that if strict accuracy were obtained,
the “ favorable balance of trade ” would be considerably more than the
above figures.
To all such reasoners the question should be put, when, where and how
is this continually extending balance of trade to be collected and discharged.
Is it sufficient for the nation to have it constantly accumulating, and never
get anything for it?
In England the account and the argument are directly the other way.
For example, the British imports in 1854 amounted to £152,380,053;
exports £115,821,092, the excess of imports being £36.567,961. In 1860
the imports were £233,626,830 ; exports £191,205,421 ; excess of im
ports £42,421,418. In 1863 the imports were £248,980,942; exports
£146,602,409; excess of imports £102,278,533, while in 1864 the im
ports were £269,246,000, and the exports £160,809,698, making an ex
cess of £108,809,698 o f imports. Thus in these four years there is an
excess of imports amounting to about twenty hundred millions of dollars ;
or about five times*the total of the exports in auy one year from the
United States to all the world.
Now can any one be so mentally blind as to suppose that Great Britain
is running in debt to other countries at this rate, or that she is pursuing
her foreign commerce at a prodigous loss? A more probable argument
might seem to be that Great Britain imports raw material to a great amount,
augments its value by her industry, exports the manufactured article, and
finds her profit in the returns.
Thus we see that this whole matter of the balance of trade is very
much of a delusion, as it is generally presented and understood. Its sig
nificance is in the international value o f money and in restraints upon com
merce. Cheap money means high prices. Duties on imports operate in
the same direction, and the nation afflicted with these disabilities works to
a disadvantage, except in the case of money cheapened by mining, which,
being capital, is exported (when in natural excess) in exchange for other
capital, and is thus a source o f national wealth like every thing else pro
duced cheap for foreighn commerce, that is to say, in excess of the home
demand. California and Australia produce money cheap because o f their
natural advantages for its production ; and as cheap capital they stipply
their wants with the excess o f money as our Western States supply their
wants with their cheap capital in the excess of Wheat. The great affair
is to produce cheap capital of the most desirable and exchangeable char
acter. It matters little whether it be money or merchandise.
The community possessing the most capital in relation to population
will have the cheapest capital, and the lowest general prices, unless their
value are disorganized by a false currency, or artificial arrangement and
1866.]
O f the Balance o f Trade.
91
restrictions of trade, and they will have the advantage of all the rest of
the world in foreign commerce. W ith lower general prices they will pro
duce cheaper than other communities; their foreign adventures will cost
less, and bring greater profits; and these profits will appear in an excess
o f imports. This is the true balance of trade; it is no debt, but a balance
of profits; an accumulation of capital in foreign trade.
England has this “ balance of trade” in her favor ; hence her continued
excess of imports, and this exeess will continue to increase under the free
trade system and limited currency ; while under our high tariff exclu
sive system and expanded currency we shall have the “ balance of trade”
the wrong way in excess o f exports, giving England the advantage in
international commerce continually.
A relative of the writer travelling in Europe at this time says he has
purchased four suits o f clothes for ninety dollars in London which would
have cost him two hundred dollars in New York or Boston, as he took
particular pains to ascertain the prices here before he left home. This,
allowing 50 per cent for the premium on gold, is obtaining a value of one
hundred dollars by our gold measure, for sixty-six and ,ej70 dollars in Eng
land. Suppose this to be the average rate at which the necessaries and
conveniences of life can be obtained in England, as compared with the
United States, then it is not merely possible but probable, that a cargo for
export may be obtained in England for sixty-seven thousand dollars that
would return the value o f one hundred thousand'dollars ; yielding thirtythree thousand dollars profit in the excess o f imports over exports ; while
a cargo o f the same relative value here would cost one hundred thousand
dollars in gold, and return simply its cost. Hence England would make
a profit of thirty-three per cent in foreign trade where the United States
would make nothing at ail. Yet if the Custom House records even exhi
bit an excess of exports it does not follow that there is any absolute loss
to this country in the business, since we export overplus products only,
and whatever we obtain for them, more or less, is in a national point of
view clear gain. That is to say, we support ourselves, pay all our expenses
of living and of production, and have these surplus products left. They
are of no value except for export, and the returns they bring us are there
fore, national accumulation and profit.
An explication will make this point clear, and show the fallacy of this
doctrine of the balance of trade. Let us suppose that by an expansion of
currency through banking, or government paper issues, we make general
prices here fifty per cent higher than they are in England ; it would follow
that the same quantity o f labor and capital which would produce a barrel
of flour in tbs country for six dollars would produce the same value in
broad cloth, say a yard, in England for four dollars; in other words there
would be this difference in prices for the same value in the respective
countries of all commodities. Then suppose England sends us an invoice
of 1000 yards of board cloth which is entered in our Custom-House
records at the aggregate price of 14,000, and, being sold here under our
inflation so as to produce the net sum of $6,000 we return an invoice of
1.000 barrels of flour at the aggregate price of $6,000 ; where and what
is the balance of trade? There is no such thing. The 1,000 barrels of
English broadcloth costs the United States 1,000 barrels of flour, and the
1.000 barrels of United States flour costs England 1,000 yards of broad
92
O f the Balance o f Trade.
[February,
cloth ; neither more nor less. The account is closed. England owes
nothing for the difference, because values are exchanged, not prices, and
this difference of §2,000 is mere price, the result of an artificial deprecia
tion of the value of money in this country. The two nations gain equally
by the exchange, since surplus products are supplied to each other o f
equal value. Money being the thing tampered with by adulteration,
remains untouched in this transaction, as between the two parties to the
exchange, and has no more to do with the balance o f trade than an equal
value of beef, or corn, or wine, which remains untouched in either country.
But suppose, what is very sure to happen, that England takes §6,000
of gold instead of 1,000 barrels o f flour for her broadcloth; then she
takes our artificially depreciated commodity, and gets $6,000 of money
for a real money value in broadcloth of $-1,000, which we raise in price to
$6,000 by adulterating our currency. She thus gains $2,000 of value
that we lose by our own folly. This is a balance o f trade that is better
missed than found. Its advocates, however, call it national gain. I
know what I say when I call it a dead loss ; we might as well plunge
two thousand dollars o f gold into the sea.
Unpracticed thinkers find some difficulty in comprehending that the
dollar is-not a fixed value. Make it of gold, or make it a promise to pay
gold, interchangeable with gold, and men, of whose intelligence, better
things should be expected fail to discover that an increase o f supply de
preciates its exchange value, precisely as every other instrument or object
of commerce is depreciated in value.
The dollar being the currency,
unit, the depreciation o f its value exhibits itself only in the rise of general
prices, and more dollars must be given in exchange for other values
than before. W hen we add dollars o f debt to our currency, interchange
able with dollars o f gold, until six have no more purchasing power than
four possessed before, it is inevitable that foreigners will take our dollars
and leave our flour, until it gluts the home market insupportably, or its
production is reduced to correspond with the demand.
Thus we throw
away capital and stop an equal amount of production by the same suici
dal act,— a double loss, like the difference to a merchant between making
$2,000 and losing $2,000 which is $4,000 in his stock account.
Here an objector may say, that with an open commerce gold cannot re
main one third cheaper in one country than in another, which is the same
thing as saying that general prices cannot remain one-half or 50 per
cent higher. On this point, what is supposed to be scientific teaching
differs from the fact o f experience, and, as science is simply experience
classified, the theory must give way where it is contradicted by the well
observed fact. The fact is, that under the operation of a currency of
debt, which can be made to suit the interest of its producers, general prices
can remain 50 per cent higher in one country than in another, or in all
others, for an indefinite period, sometimes for several years, mainly be
cause most of the values of every country are not objects o f international
exchange, but in a great degree becanse the makers of such a currency
protect themselves by bond and security against its effects. They lend no
value, no capital, but promises which create price without value, and
throw upon their debtor the obligation to furnish the value and capital to
pay the false price and meet such promises. Generally the currency
maker is protected and paid, but the value which is put in his hands to
1866.]
O f the Balance of Trade.
93
enable him to redeem bis obligation he never loaned; it is robbing Peter
to pay Paul, and Peter.fails. A price that is not a value may be kited
in the exchanges of domestic commerce for years, but when its ultimate
payment in value is demanded somebody must fail, for a value cannot be
paid that never existed. It is, as I have on another occasion remarked,
like circulating promises to deliver several Kohinoor diamonds, there being
but one in existence ; the promises may crculate so long as the issues are
protected from an absolute demand for payment; but the one diamond
being demanded and sent out of the country because its value is greater
abroad than where the spurious promises circulate and cheapen it, the
several promises for which there is no diamond to respond must be dis
charged by insolvency. Whether one diamond or millions of them, one
dollar or millions of them, or anything else, form the basis of fictitious
promises, a currency so constructed must plunder those who become bound
with endorsers to save the issuers harmless. But while the issuers are
saved the currency can be maintained so as to inflate prices not merely 50
per cent but even 400 per cent beyond the natural money value, and
yet under specie payment, as the experience of France with Law’s bank
ing and Mississippi scheme clearly shows.
Charles Mac I-ay, in his historical sketch of the Mississippi scheme says:
“ The looms of the country worked with unusual activity to supply
rich laces, silks, broad cloths, and velvets, which being paid for in abund
ant paper increased in price four-fold. Provisions shared the general
advance; bread, meat, and vegetables were sold at prices greater than
bad ever before been known, while the wages of labor rose in exactly
the. same proportion. The artisan who formerly gained fifteen sous per
diem now gained sixty.”
This four-fold rise of general prices was nothing but a fail of threefourths in the value of money, and the cheapened commodity ; money
rushed out as fast as foreigners could pour other capital into France to
exchange for it. Edicts of the Government, the most despotic, and per
secution the most odious, were powerless to prevent this.
Plate and
expensive jewelry were secretly sent away to England and Holland, and
ludicrous devices were adopted to escape the vigilance o f the Govern
ment.
“ Vermalet, a jobber who sniffed the coming storm, procured
gold and silver coin to the amount o f nearly a million of livres, which he
packed in a farmer’s cart, and covered over with cow du ng; he then dis
guised himself in a dirty smock frock, or blouse, and drove his precious
load into Belgium.
From thence he soon found means to transport it to
Amsterdam.”
“ Notwithstanding every effort to the contrary the precious metals
continued to be conveyed to England and Holland. The little coin that
was left in the country was carefully treasured or hidden, until the
operations of trade could no longer be carried on.
Law th^n obtained an edict forbidding the use o f specie altogether,
which destroyed the credit o f the bank paper irrevocably, and drove the
country to the very brink o f revolution. The illusion c eated by his sys
tem of banking, o f which the Mississippi scheme was but an off shoot,
lasted four years— 1716 to 1720— when the iniquitous contrivance concrumbled into ruin, destroying not traders only, but the fortunes o f many
of the wealthiest and best families of France.
94
O f the Balance o f Trade.
[February,
No one having a knowledge o f commerce, to say nothing o f political
economy, will deny that cost o f production is an essential element o f mar
ket value in every commodity, and also that the currency aud demand o f
the consumer finally determines its selling price over and above the cost
of production, and the effect o f the high price he pays, if convertible into
value, is to enhance the price and value o f imports in the market of pro
duction. In every way and without exceptioe the result of employing
a paper or debt currency is to benefit the foreign to the damage of the
home market. Thus France, under Law’s currency scheme, became the
clearest market to sell in in the world.
The surplus products of every commercial nation must be sold at such
rates as foreigners will pay,so that the producers of such products get no
advantage from the paper inflation at home. Generally nations without
mines of the precious metals, and without a paper currency, pay for their
imports directly in their own products without difficulty, and without ex
porting gold and silver which they receive in their returns; and if we
possessed statistics o f the foreign commerce of France during the eventful
four years of Law’s experiment, I have no doubt we should find that her
home products would have paid for all her imports, and did so in fact, if
the imports had been reckoned at the natural money value, so that the
money which made up the “ balance o f trade” in the excess o f exports
was completely thrown away. The kingdom would have been stripped
of the precious metals at that time, virtually for nothing, but for the habit;
o f hoarding among the people induced by a long continued distrust of
the government.
If what has been said is correct, then a protective tariff which is with
many the panacea for all the ills of commerce, and especially for what is
thought to be an adverse balance o f trade is an evil. Of course the o b
ject and the operation of the tariff is to raise the price of both foreign and
domestic products to consumers, so that certain individuals may be en
abled to direct the industry o f the country into unnatural channels and
supply the home market with commodities directly, that can be supplied
cheaper indirectly through foreign commerce. And this it is contended,
by checking imports, will save our gold and silver coin and bring about
the desired “ balance of trade” in an excess o f exports. That, with a
debt currency, it tends to a nominal excess of exports there would seem
to be no doubt, for the same reason that cheap money induces high prices
which cripple foreign commerce and change the export demand from
merchandise to money. I repeat that while a debt currency circulates in
the country the money included in the excess of exports, is thrown into
the lap of other nations in payment of a false price for their products to
our utter loss. The tariff promotes this loss by indirection, by raising our
home prices and preventing profit in foreign trade which would exhibit
itself as it does in England in an excess of imports.
lias the tariff policy which has been pursued with rigor, but with vexa
tious irregularity, ever since the close of the war of 1812 saved to the
nation the precious metals imported and mined here since that date?
The answer to this question in to be found in the fact that not more than
$200,000,000 probably remain in the country outside of the arts and
hoards.
1866.]
Treasure Movement During the Rebellion.
9".
TREASURE MOVEMENTS DURING TIIE REBELLION.
In this number we give a comprehensive exhibit o f the movements
o f treasure, at New York, for each month o f the last seven years; the
fluctuations o f which deserve careful analysis, as illustrating the mone
tary derangements connected with the war and the supply o f the precious
metals at its close.
The first result o f the outbreak o f hostilities was to draw a large
amount o f specie from abroad. The prospect o f a limitation o f the
business o f the country induced a contraction o f importations; and,
having a large surplus o f produce for exportation, our exports so for
exceeded our imports that, in 1861, we imported $37,088,413 o f specie,
seven times the average amount o f the two preceding years. This large
accession o f coin would have materially strengthened the banks in aiding
the government and might have enabled us to surmount easily the first
financial demands o f the war, had it not been that the failure o f confi
dence throughout the country caused a rapid and extensive withdrawal
o f money from this centre. Credit was suddenly curtailed; and the
result was that the circulating medium was needed everywhere to supply
the place o f the usual forms o f individual promises-to-pay; while the
banks o f the interior partly from mistrust o f the ultimate ability o f the
New York banks to meet their obligations and partly because they were
pressed by depositors for coin, withdrew their balances from the banks
o f this city.
N ot a few cautious individuals and most o f the foreign
bankers took the same course, so as to be prepared for any possible
adverse contingency. The result o f these movements was that, in 1861,
$68,408,112 o f specie was returned from this market into the interior
and into hoards, nearly $27,000,000 o f the amount going in the month
of December. The receipts from California during that year were at
about an average rate, amounting to $34,485,940.
The whole move
ment for the first year o f the war, 1861, may be thus summarised:
In the Banks and Sub-Treasury, Jan. 1, 1860...........................................
Received from California...............................................................................
Imported from foreign ports .......................................................................
Received from inland and hoards................................................................
$30,100,000
34,485.949
37,088,413
.............
Total supply for 1861...................................................................................
Exported to foreign ports..............................................................................
Returned inland and into hoard...................................................................
4,236,250
68,408,112
$100,674,362
Total withdrawn..........................................................................................
$72,644,862
In Banks and Sub-Treasury Dec. 31,1861................................................ .
Loss during 1861.............................................................................................
$29,030,000
1,070,000
The large withdrawals o f gold at the close o f 1801 precipitated the
suspension o f the banks ; which was followed by a gathering in o f their
balances from the interior, producing a return current o f specie to this
centre. This movement continued throughout 1862, and for the year
the amount gathered in from hoards and drawn from the interior amount
ed to $43,907,957. The return current was stimulated by the issue of
United States notes, Demand notes, and 7-30 Treasury notes, o f which,
combined, there was outstanding, on the 30th June, 1862, $272,496,550.
96
Treasure Movement During the Rebellion.
[February,
The issuing o f this large amount o f paper currency lessened the require
ments for coin as a circulating medium, and treasure was, consequently,
free to follow its tendency to gravitate toward this centre. The passing
o f the legal tender act was followed by a general withholding o f coin
from circulation; which still further aided the return current. The
effect o f these issues o f currency was to steadily force up the premium
on gold, which, at the beginning o f July reached 10, and at the close o f
December 33. Gold and silver coin being then no longer a currency,
but practically an article o f merchandize, and being non-productive to
its holders, it naturally returned to this point, where, for the purposes
o f customs duties, exportation, and speculation, it was in active demand.
Under these circumstances it was not remarkable that o f the sixty-eight
millions withdrawn into hoards and inland during 1861 forty-four millions
should have been recovered from those sources in 1862; nor was it
singular that, during the w^hole o f the latter year, not one dollar wras
withdrawn to those sources.
The disturbance o f confidence exhibited
its natural results in the extraordinary export, during 1862 o f $59,437,021
o f specie; foreign capitalists calling home their balances held here,
foreign bankers sending abroad their gold for safe keeping, while even
domestic capitalists sent out large amounts o f coin from the same m o
tiv e; a movement which, owing to a decrease o f produce exports, there
was no favorable balance o f foreign exchanges to obviate. The follow
ing statement will indicate the movement o f treasure during 1862:
$*29,030,000
In the banks and Sub-Treasury Jan. 1,1862...............................................
Received from California....................................................................
25,019,787
Imported from foreign ports.........................................................................
1,390,277
Received-from inland and hoards.......................................................................
43,907,057
Total supply for 1862..............................................................................
$100,408,021
Exported to foreign ports........................................................ ....................
$59,437,021
Returned inland and to hoards................................................................................................
Total withdrawn......................................................................................
In banks and Sub-Treasury Dec. 31,1862...........................................................................
Gain during 1862........................................................................................................................
$59,437,021
$40,971,000
11,941,000
The year 1863 was chiefly remarkable for the reduction in the re
ceipts from California, resulting from the dangers o f capture by rebel
privateers. The receipts from that source for the year amounted to only
$12,207,320, about one-third the average Pacific supply.
The receipts
from abroad xvere merely nominal, aggregating for the year $1,528,279.
The supply from the interior and from hoards continued to flow in
steadily, from the causes above indicated, commencing with $1,509,382
lor January, and closing with $5,427,748 for December, and aggregating
for the year $33,040,001. The exports to foreign countries amounted
to $49,754,056, and would have reached a much larger sum but for the
fact that large amounts were shipped from San Francisco to Europe on
New York account. During this year, also, there was no movement
whatever into hoards or to the interior, the general disposition apparently
being to realise upon gold rather than to hold it idle. This fact is
worthy o f special note, as it wholly disproves the oft reiterated assertion
that the unsetled condition o f the finances, and the advancing premium on
gold induced an extensive hoarding o f coin.
The truth is, that during
the second and third years o f the war— 1862 and 1863— $8,536,946 more
was drawn from hoards and inland than was withdrawn into those
1866.]
97
Treasure Movement During the Rehellion.
sources in the first year.
as follo ws:
The movement o f treasure during 1863 was
$40,971,000
In the banks and Sub-Treasi r Jan. 1,1863................................................
12,207,390
Received from California___ .......................................................................
Imported from foreign ports. ................................................................................................1,528,279
33,040,001
Received from inland and ho ds...................................................................
Total supply for 1863----- .....................................................
Exported to foreign ports....... . . . .................................................................
Returned inland and to hoards
49,754,056
Total withdrawn.....................................................................................
i
17,746,590
$49,754,056
In banks and Sub-Treasury Dec. 31,1863 ..........................................................................
Loss during 1863........................................................................................................................
$37,992,534
2,978,466
In 1864, the supply from California continued on the same limited
scale as in the previous y ea r; while the imports from foreign countries
were still merely nom inal; the receipts from both sources aggregating
only a little over fifteen millions. The receipts from the interior and
from hoards reached $30,294,221 ; but as there were withdrawals in
that direction amounting to $2,599,508, the net accessions from those
sources were only $27,691,'723 ; or less than in 1863 by $5,348,268.
It is worthy o f note that during July, when the passing o f the Stevens
gold bill put up the price o f gold to 285, there was a large influx from
hoards and inland; and that during August and September, when the
price fell steadily to 190 the receipts from those sources declined to a
merely nominnJ am ount; while in October, when the price reacted to
227, the same supplies rose to much above the average rate. These facts
furnish another indication that gold was most freely thrown upon the
market when the price was advancing. The following statement exhibits
the movement o f treasure at this port for the year 1S64:
In the hanks and Sub-Treasury Jan. 1 , 1S64................................................
Received from California..................................................................................
Imported from foreign ports...........................................................................
Received from inland and hoards.................................................................
$37,992,534
12,907,803
2,205.522
30,291,221
Total supply for 1864..............................................................................
Exported to foreign ports................................................................................
Returned inland and to hoards.......................................................................
$50,803,122
2,599,508
Total withdrawn.....................................................................................
$83,457,080
.
In banks and Sub-Treasury, Dec. 31,1864............................................................................
Loss during 1864........................................................... ...........................................................
$53,402,630
$30,054,450
7,938,084
A t the opening o f 1865, the rebel cruisers had ceased to haunt the
track o f the Aspinwall steamers and the receipts o f gold from California,
therefore, steadily augmented, the monthly arrivals having averaged, for
the first two months o f the year, $1,478,596, and for the two last months
$2,649,479. The total receipts for the year, however, are hut little more
than half those o f 1859. A s the year opened with gloom y prospects
for the rebellion, the opinion became general that the future course
o f the gold premium must tend steadily downward. There was, conse
quently, a general desire to convert gold into greenbacks. This disposi
tion predominated throughout the year, and hence gold has continued to
flow in freely from the interior and from hoards, the aggregate receipts
from those sources b ein g$37,532,311. During September and October
a large increase in the im ports o f merchandize and disappointment as
to the amount o f the exports o f produce, had the effect o f producing
anticipations o f a large export demand for specie, while the requirements
98
Treasure Movement During the Rehellion.
[February,
o f importers, for duties, were vastly beyond all precedent. This again
produced a disposition to hoard, and during those two months $7,620,901
was hoarded and taken into the interior. The lightness o f the imports
during the first half o f the year, and the large export o f Government
and other securities to Europe having tended to keep foreign exchange
easy, the export o f specie has been comparatively light, being about
twenty millions below the average. The exports, indeed, have been only
$6,334,887 more than the combined receipts from California and from
foreign ports, while in 1864 the exports were $35,629,797 above the
supply from those sources. The treasure movement o f last year was as
follows :
In banks and sub-treasury, Jan. 1, 1865........................................................ $30,054,450
Received from California................................................................................... 21,531,786
Imported from foreign ports.............................................................................. 2,137,011
Received from inland and hoards........................................................ ............. 37,532,311
Total supply for 1865......................................................................
Exported to toreign ports................................................................................. $30,003,683
Returned inland and to hoards.......................................................................... 7,620,901
$91,255,558
Total withdrawn............................................................................$37,624,584
In banks and Sub-treasury, Dec. 31,1865........................................................
Gain, during 1865..................................................................................................
$53,630,974
23,576,524
The present condition o f the banks and Sub Treasury, as respects
treasure, is one o f unusual strength, tue supply held at the close o f 1865
being thirteen millions larger than at the same period ot any o f the last
seven years. It must not, however, be hence concluded that the country
is stronger in coin and bullion than formerly. The following statistics
afford evidence that the increase o f the supply at large is apparent rather
than real. The figures represent the aggregate for the seven years ending
December 31, 1865:
In banka and Sub-Treasury, Jan. 1,1859....................................
1859-65—Received from California...............................................................
1859-65—Imported from foreign ports........................................................
1859-65—Received from inland and hoards.................................................
$39,238,000
180,385,636
56,078,253
182,765,623
Total supply for seven years 1859-65........................................................
1859-65—Exported to foreign ports.............................................................
1869-65—Returned inland and to hoards....................................................
306,141,169
91,690,357
$451,462,510
Total withdrawn in seven years...............................................
$337,831,526
In hanks and Sub-Treasuw, Dec. 81,1835..................................
$53,630,986
From these figures it will be seen that our exports to foreign countries!
during the seven years, have exceeded our receipts from California and
from foreign sources by $69,677,280. The receipts from hoards and
inland have exceeded the amount returned to those sources by $91,075,246.
O f this net amount o f withdrawals from the interior and hoards,
$69,677,280 has gone abroad, and the remainder represents the in
crease during the seven years in the amount held by the banks and SubTreasury. The important question whether the country at large, exclu
sive of California, has lost gold during the seven years depends upon
whether the interior and the hoards have been replenished from sources
independent o f New York, to an extent equal to the net drain 1herefrom to this city. A s that problem is one incapable of solution, from
lack o f the necessary data, it is impossible to indicate satisfactorily
whether the supply in the country has augmented or decreased during
the seven years.
1866.]
99
Marine Losses— Disasters in 1865.
MARINE LOSSES— DISASTERS IN 1865.
the year 1865, disasters have been reported at New York
to 1,490 vessels o f all classes. O f these about 500 were total losses.
The latter part o f the year has been particularly noted for the value o f
the vessels lost. A large number o f steamers principally engaged in the
coasting business have materially increased the list and unfortunately
added a great loss o f life to the loss o f property.
It will be seen from the following statement that the total disasters
exceed those o f either o f the lastfive years. In fact no season since 1854
has equalled this in marine losses, although the increased strength o f our
Marine Insurance Companies will render the loss comparatively light to
them.
D
u r in g
NU M BER
1861
1862
1863
1864
1865
OF D ISA S T E R S
REPORTED
.....................................
.....................................
.....................................
.....................................
.....................................
A T N E W T O R E D U R IN G TH E
TO T A L A N D P A R T IA L .
Steamers.
46
44
71
46
75
2S5
Ships.
232
233
340
280
197
1,282
Barks.
182
219
217
119
260
997
LA ST R IT E T E A R S INCLUDING
Brigs.
168
189
206
165
357
1,085
Schooners. Total.
322
953
325
1,010
474
1,308
290
900
561
1,490
2,002
5,651
The amount of loss during 1865 is 820,000,000 distributed in great
part between New York, Boston, Philadelphia and other American Un
derwriters, whilst a portion will fall on owners and foreign Underwriters.
The following statement will show approximately the value o f the losses
each month for five years with the totals.
E S T IM A T E D V A LU E O F LOSSES.
January....................................
February..................................
March........................................
April........................................
M ay..........................................
June..........................................
July..........................................
August......................................
September..............................
October....................................
November.......................
December ...............................
1861.
1862.
1863.
1864.
1865.
Total.
$2,930,600 $1,825,600 $1,430,200 $1,650,000 $960,000 $8,196,400
2,403,700
1,539.200 1,175,000
2,350,000
673,000 8,130.900
2,618.500
2,340,800 1,340,000
1,460,000 1,947,000 9,736,300
1,617,550
1,416,300 1,950,000
1,830,000
944,000 7,751.850
2,825,600
1,7&5,700 2,100,000
960,000
740,000 8.361,300
923,500
960,000 2,230,000
650.000
560,000 5,323,500
933,500
647,000 1,800,000
1,850,000
620,000 5,849,500
576,900
428,000 1,250,000
1,370,000 1,950,000 5,574,900
956.450
616,000 1,569,000
750,000
940,000 4,822,150
700,850
1,412,000 1,075,000
1,280,000 2,375,000 6,842,850
1,314,500
1,716,000
950,000
1,660,000 4,620,000 10,260,. 00
1,100.000
1,964,000 1,750,000
1,956,000 2,960,000 9,730,000
Total....................................
18,930,650 16,590,600 18,610,200 17,766,000 19,2S9,000 91,186,450
The immense losses o f the last three months have brought the total beyond that o f the previous years. This is due in great part to the disas"
terous fires in cotton and on cotton ladened vessels ; the case o f the Harry
o f the W est alone involving loss to near $1,000,000. Disasters of that
nature have directed attention to the origin o f these fires, and the mea
sures necessary to prevent them. W e published a few weeks since some
excellent recommendations with regard to this matter.
In reference to general losses at sea, more care in selecting masters and
mates, and a more thorough system o f inspection ot vessels seems to he
desirable. F or the preservation o f life, an impetus has been given to new
inventions, and a life saving raft, composed of gutta percha cylinders
cased in canvass, and capable o f inflation at pleasure, has met with
considerable favor. It has been found that ordinary boats are too fre
quently stove at a critical moment, or do net live in a heavy sea. They
are also difficult o f landing in a a heavy surf. M ost o f these objections
appear successfully met b y the raft alluded to.
100
Imports o f D r y Goods at New York fo r 1865.
[February,
DIPORTS OF DRY GOODS AT N EW YORK FOR 1865.
W e have prepared the annual statement o f the imports o f dry goods
at the port o f New York, giving the description o f goods for the year,
and also the totals for each month. It will be seen that the figures for
this year are considerably in excess o f either o f the previous four years.
The total is ninety-two millions, against seventy-one millions in 1864.
the following table show's the description o f goods, and the relative totals
for the previous three years :
IM PO RTS O P D R Y GOODS A T N E W Y O R K .
Description
of goods.
Manufactures—
W ool.........................
Cotton..................................
Silk..............................
Flax.......................................
Miscellaneous dry goods ___
$16,720,931
7,192,524
13.334,411
3,580,303
2,808,520
$25,718,592
8,501,512
11,568,807
7,666,946
2,665,370
$29,703,956
7,91^,957
15,534,469
10,381,059
3,731,106
Total imports....................
$43,636,689
$56,121,227
$67,274,547
1861.
1862.
1863.
1864,
1865.
$31,411,965 $36,053,190
8,405,245
15,449,054
16,194,080
20,476.210
11,621,831
15,521,100
3,956,630
4,561,586
$71,589,752
$92,061,140
The increase this year has been pretty evenly i istributed among the
different classes o f goods, with the exception o f cottons, which are in
excess. W e now give a summai'y o f the imports each month, from
which can he seen the course o f the trade throughout the year. The
returns for the previous four years are added :
TOTAL
IM PO R TS
OF
Months.
1861.
January..........................................$10,956,857
February.......................................
6,782,036
March.............................................
5,S36,076
April..............................................
2,767,645
May................................................
2,489,823
June...............................................
1,205,382
July...............................................
1,476,887
August .........................................
3,536,333
September....................................
2,102,064
October.........................................
1,971,541
November....................................
2,506,926
December....................................
2,004,219
Total....................................... $43,636,689
DRY
GO O D S
AT K FW
YORK.
1862.
$2,965,052
5,344,514
6,471,901
3,296,498
2,944,483
3,635,102
5,628,014
8,707,710
6,185,193
3,865,798
3,710,357
3,466,405
1863.
$5,269,181
5,027,857
9,204,581
4,384,007
3,612,511
2,901,423
4,713,365
8,310,878
5,892,712
6,5C9,783
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
4,1 7,449
2,996,100
2,235,107
1,558,567
1865.
$2,350,635
3,723,690
5.324,599
8;969,706
3,931,468
5,442,062
7,226,233
13,462,265
11.198,257
12,187,331
12,657,937
10,586,951
$56,121,227
$67,274,547
$71,589,752
$92,061,140
From this statement it appears that almost three-fourths o f the imports
for the year were during the last six months. This was the result o f the
active demand arising at the close o f the war, and the light imports o f
the first half o f the year and the last half o f 1864. W e now give the
imports o f D ry Goods for each year since 1849 :
IM P O R T S O F F O R E IG N D R Y GOODS A T N E W Y O R K .
Invoiced value.
1849
...
$44,4:15,575
1850
...
00,100,371
1S51................
6-',840.731
1852 ................
01,654,144
1853
...
93,704,211
1854 .................
80,842,936
Invoiced value.
1S55.................
$04,974,062
93,302,898
1850 .................
1857
...
90,534,129
1858 .................
00,154,509
1859
...
113.152,024
1800 ...............
103,927,100
Invoiced value.
$43,030,689
1861................
1802....................
56,121,227
1863 ....................
07,274,547
1864
......
71,589,752
1865
.......
92,016,140
It will be remembered that the figures here given refer to the foreign
cost abroad o f these imports in gold, and that the freight and duty, also
payable in gold, must be added to determine the cost here in gold.
1866.]
Lumber Trade o f Chicago.
101
LUMPER TRADE OF CHICAGO*
I l l in o i s is one of the largest of the interior States, but on its fifty-five
thousand square miles of surface, probably there grows not a single pine
large enough from which to fashion boards. The same mav be said o f
southern Wisconsin and portions of Iowa and Wisconsin. In all these
States indeed there is also a great scarcity of trees of any kind. Their
forests are not sufficient for their fuel, and at the first glance we might be
tempted to justify the old travelers who believed that this country of prairie
was doomed to remain to the end an uninhabited wilderness on account of
its bareness— the lack of material out of which to provide shelter and fuel
sufficient for the wants of civilized man. And to this day the most obvious
want of this region, so rich in mineral and agricultural wealth, is the want
of wood. Four millions of people, however, inhabit the States above
named ; the prairies are dotted with houses and barns, and checquered with
fences, and every day adds to their numbers, and consequently their wants
in this regard. These fences and most o f these buildings are of wood— for
the most part of pine wood, not one foot o f which was grown within the
States themselves. In these facts we have the explanation why the lumber
trade within them is so extensive. The reasons why Chicago is the seat
of 1 1 is trade the sequel will make clear.
When nature prepared the beautiful prairie region, now called Illinois,
to be the garden spot of the continent she was mindfuf to provide for all
the wants of its future inhabitants. So, having prepared the surface of
the earth for fields, gardens, pastures and meadows, and stowed away
beneath the soil abundant mines and quaries, she thoughtfully planted a
great wood lot in Michigan, and scooped out a deep canal between. This
wa
u ..uiu.ncatiun enables us to bring into the harbor of Chicago at a
trifling expense the lumber which the forests on the lake and its tributaries
provide so abundantly. And the numerous lines of railroads which radiate
fro the city furnish the means of sending it to almost any point in the
land.
The greater part by far o f the lumber used in the interior, and, indeed,
elsewhe ; in this country, is pine. It is preferred because it is the only
material which is easily worked; is durable, and at the same time preserves
a g )od surface. Some deciduous trees, as whitewood and bass wood, make
lumber which is used to some extent for building purposes; but these
trees grow for the most part where the country is well settled, and the
lumber from them is mostly consumed at home. Some of the hard woods
as o tk, maple, black walnut, beech and butternut, can be finished beauti
fully, and are much used for furniture, and for the inside finish of elegant
buildings. The good taste o f our citizens has been manifest especially of
late in the choice which they have made of the ma'erials, and a trade of
these w 'Ods has sprang up w ie h must extend with the progress of good
taste.
The shores of Lake Michigan and Lake Huron and the banks of many
of the streams which empty into these lakes, are covered with vast forests
of pine. That portion of the state of Michigan between lakes Huron and
* A large portlo a of this article appeared in the Chicago Timee a few weeks since.
102
Lumber Trade o f Chicago.
[February,
Michigan, and called the “ lower peninsula,” is mostly covered with forests
o f pine, north of the line of the Detroit and Milwaukee railroad. A great
part of northern Wisconsin is covered in the same way. In Canada, along
the Georgian bay, is another wilderness of piny woods, occupying thou
sands of square miles. Probably in Michigan, Wisconsin, and that por
tion of Canada bordering on Lake Huron, there are nearly or quite 40,000
square miles of pine woods ; that is, an extent of surface nearly equal to
three-fourths of the area of the State of Illinois.
The lumber country is comparatively uninhabited. The soil is usually
unproductive, and does not tempt permanent settlers. The mills are at the
head of navigation on the streams, and, to avoid hauling the heavy logs
long distances, those trees only are felled which are near the streams, to
which they are hauled and on which they are rafted down to the mills.
Thus, up to this time, notwithstanding the immense consumption o f
lumber for the past 20 years, nearly all of which has been obtained in
these districts, only the edges of the forests, as it were, have been invaded.
Along the St. Joseph, Kalamazoo, Grand, Muskegon, Manistee and Grand
^Traverse rivers and their tributaries, on the eastern shore of Lake Michi
gan, and on the numerous streams which find an outlet by way of the
Saginaw river into Saginaw bay, great inroads have been made on the
forest, and in some sections the supply is apparently exhausted. This is
especially the case in those places most easily accessible, and which have
been long worked. And for this reason it is annually becoming more
difficult and expensive to obtain material for the mills, as it has to be
hauled and rafted greater distances. And this difficulty and expense must
increase, and with them the cost o f lumber, until artificial means of trans
portation have been provided which will enable lumbermen to extend
their operations to those localities at a distance from the streams.
When railrodds shall have been built through the interior of the lower
peninsula of Michigan of northern Wisconsin, connecting these now inac
cessible districts with the lake harbors, we may expect from these locali
ties which have hitherto been inaccessible, and therefore untouched, a large
increase in the supply of lumber, which may serve to keep down prices
and furnish us witk building material for the rest of this century, and, per
haps, a part of the next.
But where is our lumber to come from when all these forests are ex
hausted ? This is a question of grave importance, and one not easily an
swered. W e are yearly consuming the product of scores of square miles
of the forest, and on the ground so laid bare no new growth is appearing.
W e are not only' harvesting a crop which it has required centuries to ma
ture, but we have planted nothing to supply its place. In our eagerness
to supply our own wants, w:e seem likely to consume the inheritance of
posterity, as well as our portion of those goods which nature has appro
priated to the use of all her children.
The largest portion o f the lumber found in the Chicago market comes
from the eastern shore of Lake Michigan. Each o f the mills on the
streams which we have named manufacture millions of feet annually. The
supply of pine on the St. Joseph River, Michigan, is very nearly exhausted,
and now Muskegon boasts of the largest number o f mills and the greatest
production of lumber.
A very large amount of lumber is brought from Green Bay and the
Lumber Trade o f Chicago.
103
vicinity of Lake Winnebago in Wisconsin. The extension by tbe North
western Eailroad of a line to tbe lumber country, in tbe neighborhood of
Winnebago Lake, has made this region accessible, and the receipts by this
railroad are almost entirely the product of this district.
O f the lumber manufactured on the tributaries of Lake Huron, but a
portion reaches the Chicago market. Yet there is a large amount of
Saginaw lumber sold here, and as the districts farther north, above Sagi
naw Bay and in the vicinity of Thunder Bay, are opened, an increase in
the receipts from eastern Michigan may be looked for at Chicago.
Canadian lumber, famous for its excellent quality, formerly was sold
to a considerable extent, but now the eastern demand is so great that
most of the lumber manufactured in Canada finds its way to that market.
The abrogation of the reciprocity treaty will probably injure the trade in
this lumber east as well as west. There are extensive lumber districts on
the headwaters of the Ottawa River and along the shores o f the Georgian
Bay which are yet undeveloped. These will doubtless become o f impor
tance hereafter.
The receipts of lumber by tbe Michigan Southern, Michigan Central,
and Pittsburgh, Fort Wayne and Chicago Railroads consists chiefly of
hard wood and whitewood, the latter of which being as easily worked as
pine, though not as durable, can supply its place in inside work; and the
former being used, as has been remarked, for elegantly finished interior
work.
There is a lumber country from which no shipments are made to Chi
cago, the produce of which, nevertheless, has no little -effect on the mar
ket. This is the Upper Mississippi country. Under ordinary circum
stances, Iowa, Missouri and Western Illinois are chiefly supplied by this
region— the Mississippi affording facilities for floating the logs at a trifling
expense to points very near the place where the lumber is used. When
the supply from this region fails, as is sometimes the case, these districts
are supplied through Chicago, greatly increasing its trade „and the price
of lumber in its market.
The lumber country is, for the most part, desolate during one-half of
the year. Here the crop is already grown, and labor is needed only to
gather in the harvest, and the lumber harvest is not in the summer, but
in the winter. This season is chosen, because in the pathless forests it is
impossible to move the logs, except when the fall of snow makes it prac
ticable to use sleds, and thus drag them to the streams.
Before winter sets in the lumbering parties are made up, quarters built
and provisions for man and beast provided, and by the time the first snow
has fallen the party is established in its solitary wilderness, there to re
main until the opening of navigation tn the Spring.
Throughout the
winter the little community, cut off from all intercourse with the rest of
the world, is busily engaged in felling trees and dragging them to the
streams— dependent wholly on itself for its wants, social and moral, as
well as physical. It is a rough life, but a hearty one, and has something
of the attractions which have been thought peculiar to a life on the sea.
Indeed, a large share o f the lumbermen are sailors, who, during the sum
mer, are engaged in transporting the lumber which they helped to manu
facture in the winter.
When the snow disappears, and the ice breaks up in the streams, then
104
Lumber Trade o f Chicago.
[February,
the logs are floated down to the mills to be manufactured. This is not
always easily done, and, in case of unusually high water, the logs are
sometimes carried over the banks and back into the forests, where they
cannot be recovered until the next winter, if they are not wholly lost. The
depth o f the snow in the winter, and the condition of the streams in the
spring, are the chief natural elements which determine the crop o f logs.
When these are favorable, the product is limited only by the capital invest
ed and the number of laborers employed.
The lumber which is sold in the Chicago market is sawed near the
places where it is grown. The process is simple and familiar, though
those who have seen only the ordinary country mills running, only a
simple upwright saw, would be surprised to see the cargoes of lumber
which are turned out every season by some of these steam mills, with
their gang and circular saws. S om eof these mills manufacture 10,000,000
feet unnually. They are not as numerous as might be supposed, there
being at some places which are well known lumbering points only two
or three, and in no place, so far as we know, more than fifteen.
To form some idea of the extent of the lumber trade in Chicago, let
the reader walk up the South Branch, from the Fort Wayne depot to the
vicinity of Bridgeport. Up the stream, as far as vessels can make their
way, acres of ground on each bank are occupied by lumber yards. Cities
and villages are here annually built up and torn down.
Narrow streets
stretch from the river banks through these yards, lined on each side by
stately piles of lumber, shingles and laths, piles towering upwards some
times as high as SO feet, and the materials o f these solid though unsub
stantial edifices last winter were in the trees of the forest, standing in the
midst ot the wilderness, hundreds o f miles from Chicago. And when we
reflect that these acres of lumber are not the acquisitions of the whole sea
son, but that the millions of feet which we see are but a fraction of the
whole amount received, the balance o f which has been consumed in the
city or shipped to the interior, we may form some conception of the mag
nitude of the trade in this material, which requires a fleet to transport it,
an army of men to handle it, and the services of hundred locomotives
and thousands of cars to carry it. ,
Few are aware of the extent of the country supplied with lumber from
the Chicago market. Not only are the remotest parts o f Illinois depen
dent, atleast in part, on it for their supply, but no* inconsiderable quanti
ties are sent to the interior of Iowa, and even to Omaha in Nabraska, and
Leavenworth in Kansas, and bills have been filled for Cinncinati and Louis
ville.
It is true that the lumber region on the upper Mississippi has usually,
and does still supply the districts near the river and further west. But
this lumber region appears insufficient to supply the great and growing de
mand of this counrry which is so rapidly increasing in population and
wealth. The low water in the lumber regions of the upper Mississippi
sometimes make it impossible to raft the logs, which had been cut, to the
mills, and, consequently, the supply from this section is almost wholly cut
off, and the demand on the Chicago market greatly increased.
Last spring (1865) the high water enabled the Mississippi lumbermen
to bring into the market the greater part of the product of two years’
cutting. Moreover, last year there was a very heavy government demand
1866.]
Lumber Trade o f Chicago.
105
for lumber for the building of barracks, hospitals, storehouses, etc., which
has not only entirely ceased, but the greater part of these government
buildings have been sold, and thus a large amount o f lumber has been
thrown upon the market. Again, early in the season, when the close o f
the war had made every one distrustful o f tbs utura, there was very littie
building attempted. Yet, notwithstanding ail these circumstances which
would tend to limit the demand, we find that during the season o f I t , ';
the lumber trade of Chicago increased, and the city still claims to be tn_
greatest lumber market in the world.
The enormous consumption o f lumber indicates very accurately the
general prosperity and spirit of enterprise which has prevailed during the
year. The unusual production of the upper Mississippi has been absorbed
to a great extent by the southern demand. Millions of feet have been
rafted as low down as New Orleans, and throughout the South, and as far
north as the Missouri river, the ravages e f war have created a demand
which the production of years will not be able to satisfy. Consequently
lumber merchants are anticipating and providing for a continuance and
even an increase of the demand which has seemed, for the season just
passed, extraordinary.
The stocks on hand at the different yards are unusually large, and the
preparations for lumbering are extensive and promise to be successful. For
a few years past it has been very difficult to obtain laborers. N o such
difficulty is now encountered. The disbanding of the army has made pro
ducers of hundreds of thousands o f consumers and destroyers.
Until the year 1856, Albany was the greatest lumber market in the
world. A t that time Chicago distanced her, and has since kept the lead.
Albany, which is supplied from northern New York and Canada, has the
second place, and Pittsburg, which is the market for the pine regions o f
the Alleghany, the third.
The exhaustion of the pine forests of northern
New York has had much to do with the decrease of the trade of Albany,
and the production of the country which has supplied the Pittsburg, mar
ket has so decreased that the cities on the Ohio river are now supplied in
part from Chicago.
W e give a table of the receipts of lumber, shingles and lath since 1847.
The receipts for 1865 are reckoned from the first of January to mid-De
cember. Very little more will be received, the receipts by lake having
closed until the opening of navigation in the spring.
Year.
1847.............................
1848...........................
1849...........................
1850...........................
1851...........................
1852...........................
1853.....................................................
1854...........................
1855........................... .
1856.
1857...........................
16dO........................... ..........................
1859........................... .........................
1860........................... .
VOL. LIV.---- NO. II.
Lumber,
feet.
202,101,098
278,948,000
302,845,207
7
Shingles,
No.
12,148,500
20,000,000
39,057,750
55,423,750
60,338,250
77,080,500
93,483,781
82,061,250
168,770,800
135,876,000
131,832,000
127,525,000
165,927,000
127,894,000
Lath,
pieces
5,655,700
10,025,109
19,281,783
19,809,700
27,583,478
19,759,670
39,133,116
32,431,560
46,487,550
79,235,120
80,130,000
44,558,000
49,102,000
36,601,000
106
Lumber Trade o f Chicago.
[February,
1861.............................
1 8 6 2.............................
1863..............................
1864............................. .
1865...............................
Shingles,
No.
79,356,000
131,255,000
172,364,878
190,169,759
304,212,000
[Lath,
pieces.
32,637,000
23,880,000
41,768,000
65,953,900
60,340,000
Total................
2,560,0§3,212
938,297,743
Lumber,
feet.
The receipts for the past season have been by the following routes:
Lumber.
By lake.........................
By N. W. Railway__ _ .......................
.......................
1,670,000
7,297,300
Lath.
58,851,000
479,000
Shingles.
218,147,000
86,069,000
10,000
60,340,000
l 304,216,000
i
’ ’
Six hundred million feet of lumber received in one year! W h o can
form a conception o f such an amount ? Perhaps some calculation will
put it into a more intelligible form.
Six hundred million feet of lumber would plank a surface of 211square miles, nearly epial to the whole extent of the city of Chicago. It
would make a sidewalk four and a half feet wide entirely around the
earth !
The receipts for the past three years, if composed entirely of boards a
foot wide, would, if p'aced end to end, extend 284,400 miles ; far enough
to make a bridge to the moon, with 40,000 miles to spare !
The
whole amount received since 1855 would make a building 100 feet wide,
25 feet high, and long enough to reach from Chicago to San Francisco ;
a building which would shelter the entire population of Europe.
It
would make a bridge two miles wide across the lake from Chicago to St.
Joseph.
The aggregate amount o f lumber, shingles and lath forwardedWrom
Chicago since 1860 have been as follows:
T olal............... .
Year
1861 ......................................................
1862 ......................................................
1863 ......................................................
1864 ......................................................
1865 ......................................................
lum ber.
189,819,445
189,277,079
221,799,330
269,496,579
345,390,089
Shingles.
94,421,186
55,761,630
102,634,447
138,497,256
239,738,057
lath .
81,282,725
16,966,600
30,293,247
36,242,010
60,744,520
The following table shows the prices of different qualities of lumber on
the 1st of July o f each year since 1858 :
Year.
Clear.
1859 ................................................... $18 00@30 00
1860 ................................................... 24 06(0)27 00
1361...................................................... 22 00(527 00
1862 ................................................... 24 00@26 00
1863 ..............................................
3500(5)3800
1864 ..............................................
5000(5)5500
1865 ................................................... 45 00(550 00
Common.
$ 9 00@10 00
8 Ot (5 8 60
7 59@ 8 00
9 5<’@ 10 00
15 00@16 00
22 0 0 @ .. . .
14 00(515 00
$ 7
6
5
..
11
19
10
Cargoes.
00@ 9 00
26(0) 7 25
60@ 7 00
..@ .. ..
00@14 50
00@23 00
00@13 50
The variation in prices for the years 1864 and 1865 is shown by the
following table, in which the highest and lowest prices of each month are
given :
1866.]
107
Marine Insurance.
January... .
February ..
March.......
April.........
May............
June..........
July...........
August....
September.
October . . .
November.
December .
,----- -------- Clear.-------------- , ,-------- .—Common.----------- , ,------------ Cargoes.-------------,
1864.
1865.
1864.
1865.
1864.
1865.
$42 00@4500 $60 00@
$17 00@1800 $24 00@25 00
4200©45 00 60 00®
17 00@18 00 24 00@)25 00
42 00@45 00 60 00®
17 50@18 00 24 0U@25 00
45 00@50 00 55 00@60 00 17 50@18 00 21 00@22 00 $16 00@18 50 $14 00@17 00
50 00®
- 48 00@60 00 18 00@19 00 14 00@21 00 16 00@20 00 12 00@17 00
50 00@55 00 45 00@50 00 19 00@20 00 14 00@16 00 16 00@22 00
0 00@2000
50 00@5o 00 45 00@50 00
22 00® 14 00@15 00 17 00@,23 00 11 00@14 00
5000@55 04 45 00@60 00 20 00@24 00 14 00@17 00 17 00@22 00 11 00@18 50
DO00@65 00 55 00@63 00 22 00@24 00 16 00@20 00 18 00@22 00 14 00@21 00
60 00@55 00 58 00@63 00 22 00@24 00 19 00@20 00 15 00@19 00 16 00@20 00
50 00@55 00 59 00@62 00 20 00@24 00 20 00®
15 00@20 00 15 00@19 00
60 00@55 00 59 00@61 00 20 00@25 00 20 00®
20 00@21 00 15 00@17 00
It will be seen by this table that the prices, which in 1864 increased
steadily through the year, in 1865 fell gradually until August, when they
were about one-fourth lower than at the beginning o f the year. Since
that time they have risen steadily, and in December the quotations vary
but little from the figures ruling in January.
A comparison with the prices o f lumber in other cities may prove in
teresting. The rates given in the following table are quoted from the
latest (December) lists:
Clear.
Common.
Shingles.
New Y ork........................................ $80 00@100 00
Pittsburg.............................................
65 00@
$25 00@
Cincinnati...........................................
80 00@
80 00
Milwaukee..........................................
40 00@45 00
18 00
New Orleans.....................................
75 00@100 00 30 00@10 00
$8
8
5
4
50@
60@S 00
25@5 60
60@5 00
W e have given the figures only for lumber, shingles and lath. The
trade in timber, staves, railroad ties, telegraph poles, tence-posts and simi
lar materials, which is generally carried on by the lumber merchants,
forms an important branch of the commerce of the city.
The amount o f capital invested in the lumber traffic is immense. The
cost of the receipts o f 1865 at cargo prices, cannot have been less than
§10,000,000. If we were able to reckon up the accounts invested in log
ging, manufacturing, transporting by lake and by railroad, and handling
we would be astonished at the magnitude of the sum, and the number of
persons employed and supported by the lumber trade and manufacture is.
correspondingly large. The importance and magnitude of this commerce
has for many years engaged the attention and ability o f many of the best
business men; and, until the broad prairies are covered with forests, or
some cheap and abundant substitute for wood is discovered and made
available, it must continue to rank prominently among the leading
branches of commerce in the Lake metropolis.
COMMERCIAL
LAW-NO.
3 0.
MARINE INSURANCE.
(Continued from page 57, vol. 54.)
THE TERMINI OF THE VOTAGE, AND OF 1 H I RISK.
These must be distinctly stated, whether they be termini of time or
place. A policy from ---------- t o ---------- , or from B. t o ---------- , or from
---------- to B, would be void. Nor would it be any better if the termini
were named with apparent distinctness, but in such wise as to mean noth
ing, or nothing sufficiently certain.
108
Marine Insurance.
[February,
A policy takes effect from its date, if the bargain was then complete, al
though not delivered until afterwards. And it may be remarked, that, if
there be an unreasonable delay in the sailing of the vessel, the policy never
attaches, for the bargain is considered as annulled.
The common phrase “ lost or not lost,” or any equivalent words, make
the policy retrospective, as has been said, so far as that the insurers are
responsible for any loss which occurred before the policy was made, but
within the time or the voyage insured. If the loss be known, it must o f
course be stated; but even then, if its extent or amount is wholly un
known, the property may be the subject of valid insurance. If the policy
is to take effect “ on ” a certain day, it begins with the beginning o f
that day. If “ from and after ” a day, that day is excluded, but “ from ”
only may be more ambiguous, and the construction o f the word be open
to evidence. It has been said, however, that “ from the date ” includes
the day, and “ from the day of the date” excludes it; but this is a
very nice distinction, and we doubt whether it would be adhered to in
practice.
A policy on a vessel “ at” such a place, generally attaches when she
is there in safety. Thus, in an English case, the insurance was at and
from the island of St. Michael’s. The ship arrived in a very disabled
state, and, after lying at anchor there twenty-four hours, was blown out
to sea and wrecked. The court held that the "policy under these circum
stances never attached; because, to make it attach, she must have once
been at the place in good safety. But if there were a policy “ to ” a place,
and another was made out between the same parties “ at,” or “ at and
from,” the same place, we should say that the law would presume that
the parties intended that the second policy should attach whenever the
first one ceased by her arrival, without reference to the condition o f the
ship or her peril at the time.
Generally, a policy on goods attaches to them at the time when it would
have attached to the vessel had she been insured. And if the risk is to
begin at a certain time, and also at a certain port or place, the latter
words may be shown to be mere surplusage, and not intended to control
the former; and the risk will begin at that time, wherever the ship may
be. The extent which should be given to the meaning of the word “ port”
is sometimes a question o f some difficulty : but in general all places are
within a port which belong to it by mercantile usage and acceptance, al
though not within the same municipal or legal precinct.
“ At and from ” covers a vessel in a port, as well as after she leaves it.
“ From” only covers the vessel after she gets underway. “ At and
from,” applied to goods, does not cover them in the port when they are
on shore and warehoused, nor until they become subject to marine risk,
by being water-borne. They are, however, covered, not only when they
reach the ship, but as soon as they are put on board of boats or lighters,
or any other usual water conveyance to the ship. And if insured to a
port, they continue covered after they leave the ship by any usual convey
ance for the shore, until they are safely landed. The word “ at,” applied
to an island or a coast, may embrace all. the ports therein, and cover the
ship while sailing from one to another. “ To a port and a market,” cov
ers a voyage to the port, and thence to every place to which, by mercan
tile usage or reasonable construction, a ship tnay go thence in search of a
Marine. Insurance.
109
market; and even to return to that port, perhaps more than once, if hon
estly with intent to learn there where a market could be found. If the
insurance be on a certain voyage, a very strong presumption o f law would
confine it to the next voyage which came under that description.
If the insurance be to “ a port of discharge,” this does not terminate
if the vessel goes to a port for inquiry, or for needful refreshment or re
pair. It it be “ a final port o f discharge,” the insurance ceases upon such
parts of the cargo as are left at one port or another, and continues on the
ship, and on all the goods on board, until arrival at the port where they
will be finally discharged.
A vessel is “ at sea” when in bays or straits; and indeed, by a rather
broad construction, whenever not “ in port.” And if the insurance be
gins on a ship on a certain day “ if at sea,” this has been construed to
mean “ if not at home,” and therefore to attach if the ship was in a dis
tant port.
The English policies and our own contain a provision that the insur
ance continues on the ship “ until she shall be arrived and moored twentyfour hours in safety ;” and on the goods until they be “ landed.” or “ safe
ly landed.”
Under this clause, the ship is insured until moored in safety, so far as
the perils insured against are concerned, but not against the peculiar and
local dangers of the port, or the possibility that a tempest there might in
jure her when moored ; for these dangers continue to exist as long as she
stays there, and the liability o f the insurers would never terminate. If
she enters the narbor, and, before she is moored, is blown oft, or ordered
into quarantine, she is insured until this delay ceases and she is safely
moored in port. And if before or within the twenty-four hours, a dan
gerous storm begins, she is insured until that storm, or its danger,
ceases.
Goods, we have seen, are covered in their transit from the ship to the shore.
TOTAL LOSS AND ABANDONMENT.
The law of insurance recognizes an actual total loss, and also a con
structive total loss. It is actual when the whole property passes away,
as by submersion or destruction by fire. It is a constructive total loss,
when the ship or goods are partially destroyed, and the law permits the
insured to abandon the salvage, or whatever is saved, to the insurers, and
claim from them a total loss. By “ abandonment ” is meant, in insurance
law, the transferring o f the property insured, or what is left of it, to the
insurers. The word is used, because originally the insured gave up,
renounced, or abandoned the property, saying to the insurers, we will
have nothing more to do with it, and you may do with it what you like.
And the word is still always used, although it means a transfer. And in
the law of insurance, a constructive total loss is a partial loss made total
by an exercise of the right of abandonment. That is, the actual loss
took from the insured a part, and the abandonment took the rest, and so
they have lost all. A constructive total loss is sometimes called a “ tech
nical” total loss.
The abandonment, we say, transfers all that remains o f the property to
the insurers. If nothing remains, or if that which remains has no value,
there need be no abandonment, and this is an actual total loss.
110
Marine Insurance.
[February,
The insured never need make an abandonment if he chooses not to do
so. And if from such choice or neglect he makaes no abndonment, his
claim against the insurers is still perfect; but it is a different claim from
that which it would have been if he had abandoned, because it is now to
be settled as a partial loss, o f which we shall speak hereafter. For it is
the purpose and effect o f an abandonment to convert an actual partial
loss into a constructive total loss. And if he makes an abondonment
when he has no right so make it, such abandonment is wholly inopera
tive, unless the insurers choose to accept it ; but if they accept it, they
must settle the loss as a total loss.
The topics in relation to this subject which we will consider are :—
1. The necessity of abandonment. 2. The right of abandonment. 3.
The exercise o f this right. 4. The acceptance of the abandonment. 5.
The effect of the abandonment, or of the absence of abandonment.
1. The Necessity o f Abandonment.
It is said, that if a ship be completely wrecked, and reduced to “ a
mere congeries of planks aud iron,” or if she has not been heard from
for a sufficiently longtime, there need be no abandonment, and the insured
may claim as for a total loss, without one. In either cases, or any other
case, if the insurers pay a total loss, they are entitled to whatever shall
come to hand of the property insured. And it is usual, and we think
more proper, to abandon in both of these cases.
If the property was injured by sea peril, and passed from the insured
by a justifiable sale by the master, there need, perhaps, be n o abandon
ment, but the insured will account for the proceeds. If, however, he
abandon, the salvage or proceeds belong at once to the insurers, and are
afterwards at their risk; otherwise they are at the risk of the iusured •
2. The Right o f Abandonment.
The insured cannot convert every partial loss, however small, into a
total loss, by abandonment, tranferring the damaged property to the in
surers. But by a rule which is nearly universal in this .'country, and not
unknown abroad, if the damage by a peril insured against exceed one
half of the value of the property insured,— whether ship, goods, or freight,
— he may abandon the property to the insurers and claim as for a total
loss. But if the vessel actually reaches her destined port, she cannot be
abandoned, although the repairs would cost more than half of her value.
When we speak in another section o f partial loss, it will be seen that,
by the established usage of this country, an allowance o f “ one third, new
for old,” is always made. This means, that if a new thing were given for
an old one because the old one had been injured, the insurer would be
more than indemnified. The sails, for example, might be so new that
they had lost little of their value; or so old, that they were of no value.
To avoid inquiring into each case, usage has adopted, as a fair average to
applv to all cases, that the thing injured has lost one-third of its value.
When it is replaced by repairs, the insured therefore loses one third of
the cost of repair, and the insurers pay two-thirds.
Now our policies provide that there shall be no total loss by abandonment,
unless the injury exceed fifty per cent when “ estimated as for a partial
loss ” ; that is, one third off. Consequently, the repairs necessary to res
Marine Insurance.
1866.]
Ill
tore the vessel to a sound condition must amount to more than seventyfive per cent of her value when repaired, (one-third of which, twenty-five
per cent, being cast off, leaves fifty per cent,) before there can be an
abandonment, which the insurers are bound to accept, and settle the loss
as a total loss. W e think, however, the usuage not sufficient to require
that this one-third shall be east off, unless expressly stipulated in the
policies, as above stated, or in some equivalent manner.
The valuation in the policy, if there be one, generally determines the
value on which this estimate is to be made. In New York and in Massa
chusetts this seems to be distinctly held; but the courts o f the United
States and of some o f our States incline to say that, whether the policy
be valued or open, the value o f the ship, the loss of one-half of which
authorizes abandonment, is the actual value of the ship at the time the
loss occurs, and that this value is to be proved by proper evidence.
The premium, we think, should be excluded ; but this may not be quite
settled. A loss by jettison, by. salvage, by general average contribution,
by wages of sailors paid while they assisted in making the repairs, should
be included in the fifty per cent, if the insured have lost a part of his
jettison, and have a claim for contribution which is not yet paid, the whole
o f his loss is to be included to make up the fifty per cent, and the insurers
claim to contribution by abandonment. Thus, if his loss be by jettison of
eight tenths of his goods, it is SO per cent, and if he has a claim for con
tribution in general average for 35 per cent, this does not reduce his loss
to 45 per cent, so that he cannot abandon ; but he may call his loss 80 per
cent, and abandon, and by the abandonment transfer to the insurers his
claim for ‘65 p ercen t The expense o f repairs is to be taken at the pla<e
where actually made, or where they must have been made, if made at all.
I f the repairs cost less than fifty per cent, and the ship is bottomed for
the amount, and afterwards sold on the bottomry bond, this is a total loss;
unless the vessel came within reach o f the owner, so as to make it his fault
or neglect that she was sold.
If a sale be lawfully made by the master, under the authority from ne
cessity which we have considered in the chapter on the Law of Shipping,
this is a total loss, and the insured must account for the proceeds.
If distinct interests are included in one policy, either under one common
valuation, or under no valuation, they are so far united as one subject-mat
ter of the insurance, that the general rule requires that they should all be
abandoned together, and therefore an abandonment o f one alone is in
effectual. But it seems to be also held, that if these interests, or if several
portions of the cargo, are separately valued, this makes them so far dis
tinct from each other, that there may be a separate abandonment of one
or of the other.
3. The Exercise o f the Right o f Abandonment.
As an abandonment has the effect of an absolute transfer o f the property
to the insurers, and is intended for this purpose, it is obvious that it can
not be made by one who is not possessed of such title to the property, or
such interest therein, as would enable him to make a valid transfer.
There is no especial form or method o f abandonment. But the proper
and safe way is to do it in writing, and to use the word “ abandon,” or
^abandonment,” although other words o f entirely equivalent meaning
112
Marine Insurance.
[February,
might suffice. It must be distinct and unequivocal, and state, at least in a
general way, the grounds of the abandonment.
If the abandonment be deficient in form, the insurers will waive any ob
jection of this kind if they call for further proof, and otherwise act as if
the abandonment were altogether sufficient.
The insured may abandon at any time when the ship, by a peril insured,
is taken for an uncertain period from the master’s control, and the voyage
is broken up and cannot be renewed, unless at a cost which of itself gives
this right.
The existence o f the right depends upon the actual state of facts at the
time, and not upon the supposed facts. I f a ship be captured or stranded,
and the owner, on receiving notice, make an abandonment, and the ship
be restored or got off from the shore before the abandonment is actually
made, although the owner be wholly ignorant of it, the abandonment is
wholly void. But if the facts existing when the abandonment was made
were such as to justify the abandonment, it will be good, although subse
quent occurrences show that the vessel was neither lost nor endangered as
was supposed. Nothing, however, gives the right of instant abandonment,
without a faithful endeavor of the master to find, if he can, and use, if be
can, some means of deliverance and safety. But if, when delivered and
restored to the master, or owner, her damage amounts to more than half
of her value, estimated as above stated, “ as a partial loss,” she may then
be abandoned. If the precise voyage insured be broken up by a peril in
sured against, this justifies an abandonment, although the vessel might be
put in condition to pursue a different voyage or render a different service.
As the insurers, who take the salvage (or saved) property by abandon
ment, have a right to every possible opportunity to make the most of it,
it follows as an invariable and universal rule, that the insured must make
an abandonment immediately after he receives the intelligence which jus
tifies i t ; and if he does not, he will be regarded as having elected not to
abandon, and no subsequent abandonment will have any effect. It may
be stipulated in the policy that he shall have so many days, after receiv
ing intelligence, for abandonment.
But while this gives him a right to
delay, it does not oblige him to, and he may therefore make a valid aban
donment at once.
The abandonment may be made on information of any kind, if it be en
titled to weight and credence. So even a general rumor, without specific
intelligence to the insured, will authorize an abandonment, if the rumor
seems to be well grounded and altogether credible.
4. The Acceptance o f the Abandonment.
As there is no especial form or method of making an abandonment, so
there is no regular and established form of accepting an abandonment. In
deed an acceptance, merely as such, or in so many words, is seldom made,
' And as the insurer’s accepting is not necessary to give full effect to an
abandonment which has been made on proper grounds, and in the right
way and time, it is seldom asked for.
The acceptance of the abandonment may be inferred from words or acts.
The question lias arisen whether it could be inferred from mere silence ;
and, in general, it cannot. “ An insurer is not bound,” says Mr. Justice
Story, “ to signify his acceptance.
If he says nothing, and does nothing,
the proper conclusion is, that he does not mean to accept it.”
Marine Insurance.
113
The rule may be stated thus. If the insurer, with a sufficient knowledge
of the facts, says or does that which induces an honest insured to believe
that he has accepted the abandonment, and will pay the loss, and to act
on that belief, it is an acceptance, and is so far binding on the insurer.
But it leaves open— not the qnestion whether the abandonment was right
fully make, for that is closed— but all remaining questions and defences,
either as to the whole case, or as to any part of it.
5. The Effect o f Abandonment.
W e regard it as an ancient, reasonable and well-established rule, that,
if insurers pay as for a total loss, this payment entitles them to full pos
session of all that remains of the property insured, and also of all rights,
claims, or interest which the insured has in, or to, or in respect of the
property lost, and which, if he valued or enforced them himself, would, if
added to the amount paid by the insurers, give him a double idemnity.
Hence, if the insured has lost his goods by jettison, and has a claim for
a general average contribution, and the insurers pay him for all his goods,
they stand in his place, and acquire that claim for contribution which the
loss of the goods gave him. And we should, very generally at least ex
tend this rule to the claim which a mortgagee has on the mortgage for
his debt. That is if the insurers pay for the loss of the property which
secures the debt, they acquire, to the extent of their payment, the mort
gagee’s claim against the debtor.
But in a recent case, some nice dis
tinctions are taken on this subject.
If the salvage which the insurers take is encumbered with liens or
charges, the insured must pay or satisfy these, excepting so far as they
spring from, or may be referred to, a peril which the insurers have insured
against. As, for example, if they take a ship, it is free from liens for wages
earned in saving the ship. And, indeed, the insurers may be bound for
wages and expenses incurred in good faith, and with a reasonable discre
tion, in the endeavor to save the ship— which, by the peril and aban
donment, was their property— although the amount of the charges was
greater than the value of the salvage ; but not for expenses after the in
surers had refused to accept the abandonment, and expressly directed that
no more charges should be made on their account. If, however, this
prohibition were not in good faith, and tended to the destruction of the
property, it would be ineffectual.
By the abandonment, both the owner and the master become, to some
extent, the trustees and agents of the insurers, in respect to the property
abandoned ; and are bound to act, in relation to it, with care and honesty
Still, if the property after abandonment, or after a loss for which there is
to be an abandonment, be'furtber lost or wasted, by the bad faith or ne
glect if the master, or of the consignee of the owner, while they continue
to act as such, this loss must be made up by the owner, because, although
they are, in a certain sense, agents of the insured, they are then agents of
the owner, and lie is responsible for them to the insured.
Goods are totally lost if destroyed, or if so injured as to have little o'r
no value for the purpose for which they are intended ; or if the voyage
upon which the insurance on the goods was effected is entirely broken up.
And, in addition to all this, the rule which permits abandonment if more
than fifty per cent be lost, of which we have already spoken, is applicable
H-t
Marine Insurance.
[February,
to goods, in this country ; subject, however, to the important qualification,
that it does not apply if any substantial portion of the goods arrive at
their destination uninjured; or if the goods are insured “ free from aver
age.” And the rule of abandonment, salvage, and transfer to the insur
ers, is the same in relation to goods as to the ship.
The ship may he totally lost, and not the goods. And we have seen,
in our chapter on Shipping, that, if the ship be wrecked, and the goods
are or can be saved, it is the duty of the master to send them forward to
their destined port, if this is within his power, and the circumstances of
the case do not make it useless or clearly unwise. If he cannot transmit
them, he is bound to do that which is, on the whole, the best thing for
the interest of all concerned. If lie fails to do his duty, and the goods
are lost, wholly or partially, by this failure, the insurers are not responsible,
unless they have insured the owner of the goods against the misconduct
o f the master. And the shipper of the goods has his remedy against the
owner of the ship for loss incurred by the master’s misconduct, which
claim passes over to the insurers of the goods, if they pay the loss to the
shipper.
So, if there be many several shipments all insured, there may be a total
loss of one, a partial loss o f another, and no loss o f a third.
The rule which gives a power of sale to the master, in a case of urgent
necessity, and only then, applies to the goods as well as to the ship. And
if goods are hypothecated, the rule is the same as when the ship is bot
tomed.
The freight is totally lost when the ship is totally lost, or made (innavi
gable, oris subjected to a detention of such a character as to break up
the voyage. If there be a constructive total loss of the ship the oijner
may abandon the freight with the ship. But if the ship be actually lost,
the freight may not b e ; for the master has the right, and is under the
duty, as we have seen, of transmitting the goods, if he can. And if he
does, the owner of the ship is entitled to the whole o f his freight; and
the expense o f the transmission is all that he loses. If the master might
have done this, and fails to do it, the estimated expense of transmission is
still all the loss for which the insurers are responsible, because the rest o f
the loss is caused by the master’s fault in not tr ansmitting the goods.
So, if the ship can be repaired and go on again, and finish her voyage,
the owner would have the right to hold on to the goods, and finally carry
them and earn his freight. And he has this right, although the delay
would be very long, and even if the goods are injured, and it would cost
tin e and money to put them in a condition of safety for the residue of
the voyage. Still the ship owner, by his agent, the master, may do all
this, and then earn his freight; and therefore, if it can be done, whether
it is done or not, all the claim which the insured on freight can make on
the insurers is for the expense of doing it, or what that expense would
have been.
The rule which gives a right of abandonment for a loss of fifty per cent
applies to freight also. It, therefore, freight p ro rata be paid, it will be a
total loss by construction, if less than halt be paid. So, if the ship be
injured, and part of the cargo be lost, but the s'hip may be repaired and
carry the remaining goods on, if that part would pay more than haif of
115
Analyses o f Railroad Reports.
the whole freight, it has been held not to be total, and otherwise it is.
Freight is fully earned if the goods remain substantially in specie
and are so delivered to the consignee, although there be a very great de
terioration. But freight is lost, and the insurers are responsible, if noth
ing is left of the goods but the mere products o f decomposition, so that
they are lost in fact.
If, after some freight is earned, there is an abandonment of the ship,
and after the abandonment more freight is earned, the American cases
hold, that the freight earned before the abandonment goes to the insur
ers on freight; while that earned after the abandonment goes to the in
surers ot the ship. But the French law is the reverse, and so seems to
be the rule in England.
ANALYSES OF RAILROAD REPORTS. No. 5.
PHILADELPHIA AND READING RAILROAD.
T he main line o f the Philadelphia and Reading Railroad extends from
Richmond (Philadelphia) to Pottsville, Carbon comity, a distance o f
92.00 miles.
This main line forms the grand trunk over which a large number o f
other roads, spreading over the eastern coal fields o f Pennsylvania, find
an outlet to the seaboard. These are mainly owned or leased and opera
ted by the Reading Company, and in fact form the radii o f a system o f
which the main line is the converging point and center. The following
table gives the length o f single track in each o f these, roads, with the
sideings and equivalent total mileage o f the whole system :
Main & Side- Total
Main & SideRailroads.
branches ings. miles.
Railroads.
branches. ings.
Phila. and Reading. ......... 198.a0 96.96 295.46 Union........... .............. .......
0 61
3.47
Willow Street........ .........
3.50
.54 4.04 Good Spring.............. .......
9.10
1.72
Mount Carbon & Point
Lorberry Creek......... . . . .
0.89
5.62
Carbon................ .........
7.93 12 98 East Mahanoy........... . . . . 10.00 1.61
5.00
Mount Carbon....... .........
7.83
2.07
9.91) Port Kennedy........... ........
0.78
Lebanon Valley___ ......... 84.88 11.31 96.19 West Reading........... .......
1 74
Chester Valiev....... ......... 21.50
1.80 23.30.Mine 11. & Schuylkill HaSchuylkill Vailey .. ......... 25.23
1.71 26.94 v e n ........................... ....... 88.12 44.78
Little Schuylkill... ......... 32.83 16.37 49.20,Other roads (new)... . . . .
3.30 8.95
Mill Creek.............. ......... 15.03
4.67 19.70
Total miles of track.......................................................................................... 510.43 201.97
___ ___
Total
miles.
4.08
6.51
10.82
11.61
2.78
1.74
132.90
12.25
718.40
— and since the close o f the fiscal year 1864-65, the East Pennsylvania
Railroad, extending from Reading to Allentown, 36 miles, has come under
the company’s control, and is to be extended to Easton to form with the
Lebanon Valley Line a direct communication between the Delaware and
Susquehanna rivers.
The equipment owned b y the company is very complete and costly.
A t the commencement o f the last fiscal year the schedule was as follows :
Locomotive engines of all classes..............................................................................................
Coal cars—8-wheel (3 iron).......................................................................................
3,137
do
4-wheel (2.964 iron).................................................................. ..
5,151
Freight cars—8-wheel (294 house, 17 cattle, and 535 platform)___’846
do
4-wheel (202 house, 114 platform, e tc .)........................................
394
Passenger cars, 8-wheel............................................................................................
58
Baggage cars, 8-wheel.................................................................................................................16
Mail and express cars, 8-wheel..................................................................................................7
All other cars.................................................................................................................................
Total number of cars.............................................................................................................
—equivalent to 14,336 four-wheel cars.
216
8 288
1,240
81
566
10175
lie
[February,
Analyses o f Railroad Reports,
CAPITAL ACCOUNT.
The financial condition o f the company, according to the annual balance
sheets for the last ten years, is shown in the following table :
Fiscal
year.
1855-56.
1856- 57
1857- 58.
1858-59.
1859-60.
1860- 61.
1861-62
186218631864-
63.
64.
65.
Share
capital.
$11,375,541
11,759,149
11,737,041
11,548,922
11.548.929
11.548.929
11.548.929
13,213,227
20,072,323
20,240,673
-Capital and Liabilities.Bonds and
Dividend
mortgages.
fund.
$7,097,450
$629,347
6.S08,600
137,112
12.195.950
111,314
12.195.950
228,069
12,008,150
425,905
12,411,600
780,742
12,136,100
990,966
10,667,328
2,171,259
7.271.879
372,050
6.961.879
1,019,265
Total, incl.
sundries.
$19,262,720
19,500,106
24,044,305
24,211,053
24,353,896
25.225.483
25,528,164
26,613,828
27,716,253
28,281,817
Cost of
company’s
property.
$19,163,151
19,322,122
23,811,916
24,070,835
24,161,889
25,126,389
25,528,164
25.469.544
25.469.544
25.469.544
The large increase in the share capital noticeable in the accounts for
the three last years, is mainly due to the conversion o f bonds and the
payment o f dividends in stock.
The decrease in the funded debt is
accounted for by said conversions, but also to a great extent b y the action
o f the sinking funds.*
OPERATING ACCOUNTS.
The business o f the road since the completion o f the main line has been
yearly as follow s:
Year
ending
Nov. 30.
1S43...........................
1844......................... .............
1845........................... ...............
1846........................... ..............
1817. ....... ..............
1848...........................
1849
.................. ..............
1850........................... ..............
1851........................... ..............
1852........................... ...............
1853........................... ..............
1854........................... ................
1855 ......................... ................
1856........................... ................
1857........................... ..............
1858........................... ................
1859...........................
1860........................... ................
1861........................... ................
1862........................... ................
1863...........................
1864........................... ................
lS05...........................
0-----Equivalent “ through” tonnage.----- *
Coal: Merch’dise: Mat.’ls :
Total:
Total
Equal to
tons of
tons of
tons of
tons of
number. “ through11 2240 lbs. 2000 lbs. 2000 lbs. 2000 lbs.
322,125
26,424
17,534
54,787
218,711
659,299
33,979
66,503
421,785
20,472
160,138
1,046,812
63,'19
33,146
814,279
26,039
102,408
86,641
1,515,473
45,155
1,188,258
74,971
101,471
1.770,916
49,604
165,493
1.3110,081
71,718
1,570,531
55.509
1,235,044
11S,576
58,123
1,429,564
145.503
95,577
51.204
49,097
1,097,762
1,743,684
92,726
46,041
63,625
157,450
1,351,507
219,731
2,145.132
1,650,270
127,590
57,593
63,807
155,164
1.650,912
2,122,171
69.579
75,769
81,217
174,161
2,076,197
92,657
1,582,248
211,819
107,853
2,582,563
266,631
105.219
1,9S7,854
187.591
140,801
247,478
111,822
2,213,292
154,384
2,909,667
277,617
236,700
2,815,760
106,205
282,300
2,088.903
198,886
291,679
182,512
1,326,706
107,039
1,709,692
184.617
2,126,881
285,651
104.519
187,729
170,603
1,542.646
196,104
2,405,314
126,076
334,609
1,632,932
160.084
2,819,898
385,304
129,978
1,946,195
423,523
2,348,906
368,651
140,451
143,237
1,039,535
324,958
171.499
3,260,953
396,416
150,974
451,733
2,310,990
3,065,261
234,071
4.391,877
211.970
652,363
4,606,286
342,252
242,908
1,048,501
3,065,577
807,106
3,090,814
395,359
846,103
,— Passengers.— ,
The traffic receipts and expenses, and the net revenue from operations
yearly from 1843 to 1865, twenty-three years have been as follow s:
* In relation to these movements the President’ s report for 1865 contains the following: A*
the annual meeting in I860 the stockholders created a sinking fund ($140,000) in addition to simi
lar appropriations required by the terms of various mortgages. The following year the Board
of Managers recommended, and the stockholders authorized, the establishment of another
sinking fund, which, with those already in existence, had for its object annual deductions from
income account equal to the liquidation of the bonded debt at or before its maturity. This debt
then amount d to $11,496,700, of which $5,086,500 matured in 1866.
The fund so created
amounted in the following year to $27,37341, and it was expected that it would increase each year
until the debt was extinguished. Since that date the bonded debt has been diminished by
conversion and purchase $5,131,400. For this reason the Board of Managers regard so large an
annual appropriation, in addition to the sinking funds created by the terms of the mortgages,
quite unnecessary. They believe it to be a wise policy, and one which should be continued, to
purchase the bonds when they can be had on favorable terms; but they recommend that the
compulsory feature of the sinking funds thus voluntarily provided by the stockholders should
be abolished, and that it be left to the discretion of the managers to purchase bonds when and
as suitable occasions offer.
I860.]
Analyses o f Railroad Reports.
117
Fiscal
------ Gross Receipts-------Operating
Revenue
1 ears.
Coal.
Passengers. Merch’dize. Total.*
Expenses, t or Profits.
1843.................................... $278,840
$71,895
$37,927
$394,318
$179,395
$214,923
1S44................
92,362
49,293
597,613
329,442
268,171
103,411
1845................
60,588
489.6 5
570,726
1,060,5380
1S46.................................... 1,600,677
141,749 . 137,584
1,889,714
862,320 1,027,394
1847.................................... 1,698,664
156,201
136,220
2,002,946
902,540
1,100,606
1818..................
174,959
117,458
1,692,556
1,212,029
480,527
1849................
155,908
106,5347
1,9533,590
910,5345
1.023,245
1850.................................... 2,071,731
148,379
125,822
2,360,786
1,169,455 1,191,331
1851................ .................. 2,018.871
152,432
123,672
2,294,975
990,684
1,394,290
1852................. .................. 2,150,677
168,430
138,964
2,480,626
1,340,797 1,1539,829
225.763
180,612
1853................. .................. 2,254,694
2,688,288
1,329,511 1,5358,777
1854................ .................. 3,253,823
272,368
231,627
3,781,641
1,771,201 2,010,439
1855................. .................. 3,664.095
301.952
325,851
4,291.898
1.941,041
2,350,857
1856.................................... 3,242.458
288,427
348.699
3,879,584
1,979,019 1,900,565
1857................ .................. 2,412.923
322,612
329,986
3,065.532
1,601,753 1.463,769
1858.................
309,142
3535.915
2.5i0,751
1,382,720 1.128.031
1859................ .................. 1.883,685
474.888
365.720
2,724,293
1,478,477 1,245,816
1860................. .................. 2,328,158
333,359
599,620
3,312,546
1,686,562 1,625,984
1861................ .................. 2.111,023
406.5321
338,905
2.905,8539
1,492,933 1,412,906
1862................ ................ 2,879,420
403,564
523,416
3,911,8530
1,816,055 2,095,775
1863................ .................. 4,897,200
566.520
673,143
6,252,902
2,916,159 3,53536.743
1864.................................... 7,203,775
909,881
9,269,341
953,776
4,961,190 4,5308,151
1865.................................... 8,627,292
1,165,277
11,142,519
1,005,847
6,330.248 4,812,271
* Including “ m ail” and “ miscellaneous,” :not included in any of previous columns.
t Including drawbacks, renewals, &c.
The receipts and expenses per passenger and per ton, carried 92 miles
or “ through ” in each o f the past seven years, have been as follows :
Fiscal.
,----- Passengers.-----» ,— Merchandise, ton— , y— Coal, ton------»
Year.
Receipts. Expenses. Receipts. Expenses. Receipts. Exp’ ses
1859 ..............................................$2 52.9
$1 52.7
$1 41.9
$0 74.7
$1 15.3 $0 42.3
1860 ................................................. 2 57.5
1 38.0
1 19.9
0 53.0
1 24.9
0 48.8
1861 ............................................ 2 41-3
1 34.5
1 25.4
0 70.2
1 28.7
0 41.0
1862 ............................................ 2 67.3
1 10.4
1 15.8
0 53.0
1 24.6
0 35.8
1803 ................................................. 2 67.3
0 91.3
1 03.2
0 50.3
1 59.S
0 47.0
1864 ............................................ 2 65.8
1 13.7
1 18.2
0 63.0
2 35.0
0 S1.0
1865 ................................................. 2 70.9
1 42.5
1 37.7
0 79.4
2 79.1
1 06.9
The following are the principal payments made in the past ten years
from profits:
Fiscal years.
1856 ..............
1857 ..............
185S........... .
1859 ..............
1860 ..............
1861................
1862 ..............
1863 ..............
1864 ..............
1865 ..............
......... <........................
................................
....................................
....................................
....................................
....................................
....................................
....................................
........................... , . . . .
Interest. Sinking
on bonds, fund.
$424,431 $100,000
$ 100,000
419,406
100,000
100,000
739,701
---------150.000
735,321
150.000
731,121
150.000
150.000
740,366
386,581
742,381
210,830
687,436
502,154
392,020
431,230
New
works.
.............
.............
/----- Dividends.----- ,
Preferred. Common
$124,144
$770,530
108,626
385,425
---------108,626
108,626
108,626
108,626
108,626
699,788
108,626
816,299
1,436,933
232,770
2,022,663
2,385,359
1,864,887
155,180
1,339,245
GENERAL RESULTS.
The following table gives the cost o f the company’s property and the
results o f operations for the years 1843— 1865 both included, as measur
ed by the mileage o f the main line o f the road, v iz .: 92 miles, the other
roads owned or leased by the company being considered merely as acces
sories to this grand trunk :
Cost of
property
per mile.
Fiscal years.
1842- 43......
1843- 44......
1844- 45......
1845- 4 6 ......
1846- 4 7 ......
1847^48...........
1848- 4 9 ......
1849- 50 .....
1850- 51......
1851- 52......
1852- 53.....
$77,383
102,156
111,699
125,342
131,694
156,4853
177,5370
177,449
180,973
186,326
194,621
Gives
Opera’g Profits from Rates of
earn’gs.
earn’gs. expenses.
dividends
paid.
per mile of road.
$4,286 • $2,336
$1,950
nil.
“
6,496
3,581
2,915
11,718
6,204
5,514
20,653
10<s\
9,5373
11,280
12*,
21.771
11,961
9,810
13,174
nil.
18,5397
5,223
“
21,018
11.122
9.896
25,695
12,984
12,711
6c.
21,945
10,768
nil.
14,177
26,963
14,574
12,5389
6c. & Si.
14,769
29,220
14,451
3c.
118
[February,
Analyses o f Railroad Reports.
1853 54...............................
1854-55............................... ........................
1855-56...............................
1856-67............................... ........................
1857-58.............................. ........................
•1858-59............................... ........................
1859-60............................... .......................
\860-61............................... ........................
1861-62............................... .......................
7862-63...............................
7863.64............................... ........................
1^64-65............................... ........................
206,568
210,023
258,825
261,639
262,629
274,199
277,480
276.833
276,833
41.104
46,651
42.169
33,321
27,291
29,612
36,000
31,585
42,519
67.966
100,754
121,114
19,252
21,098
21,511
17,410
15,029
16,070
18,332
13,936
19,739
31,697
53,926
68,S07
21.852
25,553
20,658
15.911
12,262
13,542
17,668
17,649
2-, 780
36,269
46.S28
52,307
10s.
4c. & 8s.
8c.
4c.
nil.
7s.
7s.
15s.
10c. w. s.
The following table shows the
MARKET PRICE OF
STOCK
at the New York Stock Exchange for the five years ending N ov. 30,
1865:
Months.
December.
January.. .
February...
March.......
April.........
M ay...........
pune.........
July...........
August —
September.
October.. .
November.
Year
1860-1.
29%@36%
37%@46
38%@47%
39 @46
29%@44%
30%@32%
30% @33%
a3 @39%
35 @37%
34%@36%
36%@37
34 @36%
1861-2.
30%@34%
35 @42%
40 @44%
41 @41%
42 @45%
45%@49%
50 @60
54%@59%
56 @62%
56%@70
69 @79
73%@78%
1862-3.
74% @ 77%
77%@ 96
39%@ 92
86% @ 91
88 @ 95
94 @120
89 @114%
95 @111%
113%@124
186&-4.
111%@122
111 ©118%
U5%@132%
130%@154
125 @165
125 @147
138%@145
125%@139%
132%@133%
117%@134
112 @ 122
115 @134
119 @128
119 @127% 132%@140
*9%@47%
30%@79
74%@128
111 @165
1864-6.
U2%@137%
103 @117%
163%@116%
88%@114%
89% @111
90%@107%
88 @104%
98 @107%
105%@116%
114%@119%
113 @117%
88 @137%
The Philadelphia and Reading Railroad was the first great road of its
kind in this country, and still enjoys the pre-eminence of being the most
important work engaged in the coal trade. The company was chartered
April 4, 1833, with authority to construct a railroad from Philadelphia to
Eeading. A t that time it was expected that the line would be continued
to the coal fields by other companies; but such anticipation not having
been realized, the right to construct the extension to Pottsville was sub
sequently granted to the Eeading company, and the time for its comple
tion was extended to the 20th of March, 1842.
W e have no space for a history of this road, however interesting such
would undoubtedly be. But it is necessary to give a few dates and facts
in relation to its progress and policy. The construction of the road was
commenced in 1836, and that part of the line between Reading and
Norristown was opened for business July 16, 1838. On the 6th Decem
ber, 1839, the division between Norristown and Philadelphia was com
pleted. The whole amount expended up to that date was $4,540,971.
The construction o f the line from Reading to Mount Carbon occupied the
next two years, and this division was fully opened for traffic January 13,
1842. The Richmond track to the Delaware for the accommodation of
the coal trade was completed on the 20th of May following.
Thus far the property of the company had cost them between $6,000,000
and $7,000,000, and probably the works were equal to the emergency.
But really the completion here spoken of was but the commencement of
a vast and ever increasing series of constructions. The coal trade was
then in its infancy, and only beginning to attract attention. How it has
been developed in the next twenty and odd years is illustrated in the fore
going tables. The 200,000 tons carried on the road in 1843 has become
more than an annual cargo of 3,000,000 tons, while the passenger and
I860.]
Analyses o f Railroad Reports.
119
merchant traffics have increased in even larger proportions. To accomo
date this development it was found necessary to increase the capacity o f
the road, and a second track, branches and sideings followed with an an
nual add.tion to the rolling stock, all requiring enlarged capital. The con
sequence has been that the earnings had to be diverted from their proper
destination, and hence, though yearly increasing its profits, the stockholders
have failed to realize any important dividends in the shape of cash. At
least $35,000,000 have been earned above working expenses since the
road was opened, but scarcely 10 per cent of this amount has been divided,
excepting the dividends paid in stock; and yet such has been the pros
perous condition of the company, especially of late years, that its stocks
have been preferred to cash, and are now selling at a handsome premium.
The property of this company, indeed, has become a magnificent es
tate, and the capacity of the works for the vastly increased business un
questionable. The main line o f works is the outlet of a mineral region
of unexcelled value and controls all the operations within its area. By
purchase and lease the whole system o f railroads traversing it have been
consolidated and are now operated under a single direction to the best ad
vantage of the public as well as the company. This plan of absorption
was commenced in 1858, when the Lebanon Valley Railroad was purchas
ed. It has been pursued with such success that at the present day the
company, whose original road had a length only of 92 miles, control over
upwards of 75 J miles of track. On this subject the annual report lor
1855 has the following remarks :
“ Several years ago it was decided to be the policy of the company to control, by
lease or purchase, some of the important lateral roads in the coal regions. On these
branch roads which intervened between the mines and the works of this company
very high charges in most cases then prevailed, thus giving to their proprietors an un
due proportion of the profits of the transport?tion from the mines to market. When
such roads were from time to time so leased, the charges for transporting coal were
materially diminished. Pending these purchases it was not deemed advisable to stat i
them in detail in the accounts. Informer reports they have appeared in the item,
1Stocks and bonds held by the company.’ They are now transferred to, and will
hereafter appear in the capital account. The largest investment has been made in
the Mahanoy and Broad Mountain Railroad, from which one-fourth of the anthracite
coal transported by this company was received during the past year. This road and
its branches traverse the second coal field, from which largely increased supplies may
be hereafter confidently expected, The balance of the stock and bonds $851,928 57
are chiefly of the same class of investments.”
Besides these investments the company have expended, from income
during the past three years, upwards of $5,000,000 in new works.
The works of the company, however, may now be assumed to be mate
rially complete and sufficient for a much larger business than has yet been
thrown upon them. Should this prove to be the case, the future is full of
promise to the stockholders.
BRITISH AND NEW YORK RAILROADS.
T he two series o f tables which follow present certain statistics relat
ing to the results o f railroad operations in the United
the State o f New York in a form easy o f comparison.
lating to the United Kingdom are constructed from the
annually to the British Board o f Trade, and those relating
Kingdom and
The tables re
returns made
to New York
120
Analyses o f Railroad Reports.
[February,
from the returns made to the State Engineer and Surveyor.
cover the decennial period 1 8 5 5 -6 4 :
B R IT IS H
Fiscal
years.
1855................................ .
1850..................................
1857..................................
185S..................................
1859
............................
1860
............................
1861
............................
1862
............................
1863
............................
1864
.............................
Both
R A IL R O A D S.
Miles Stock, bonds,
of road. & float, debts,
8,280 £207,584,709
8,7 '7
307,595,086
9,094
315,157,258
9.542
325.375,507
10,002
334,362,928
10,433
318,130,127
10,869
362,327,338
11,551
3So,218,43S
12,322
404,215,802
12,789
425,483,438
Passengers ,--------- Operations accounts.----------,
carried.
Receipts. Expenses. Profits.
118,595,135 £21,507,599 £10,299,709 £11.2 7,S^O
129,347,592 23,165,491 10,837,456 12,323,035
139,008,888
24,174,610 11,240,2.39 12,934,371
139,193,699
23,956,749 11,668,225 12,288,524
149,807,148
25.743,502 12,593,213 13,150,289
103,483,572
27,766,622 13,187,368 14,579,254
173,773,218
28,565,355 13,843,339 14,722,018
180,485,727
29,128.658 14,268,409 14,860,149
201,699,466
31,156,397 15,027,234 16,124,153
229,348,664
34,015,564 16,000,308 17,915,256
1855-54...........................
103,589 £3,505,450,6311,624,743,109 £269,180,447 £128,965,498 140,214,949
lS55-64.(dolls).........................
$17,527,263,155 ........
$1,345,902,235 $644,827,490$701,074,745
Dividing the above figures b y the miles o f road, the following are
the resulting averages:
1855....
1856....
1857....
1858....
1859....
I860....
1861....
1862....
1863....
1864....
1855-64 1;ten y’ s).........
1855-64 tdolls.)...........
£35.939
35,327
34,655
34,099
33,436
33,369
33,336
33.350
32,-04
33,270
14,323
14,855
15,395
14,587
14,980
15.669
15,988
15,625
16.612
17,933
£2.597
2.660
2,659
2,516
2,573
2.661
2.628
2,522
2,528
2,660
£1,244
1.244
1,236
1,223
1,258
1,264
1,273
1.235
1.219
1,251
£1,353
1.316
1,423
1,293
1,815
1.397
1,355
1.287
1,309
1,409
£33,840
$169,200
15,698
£2,598
$12,990
£1,245
$0,225
£1,353
$6,705
N E W Y O R K R A IL R O A D S .
Passeng's ,-----------Operating accounts------- — ,
Expenses.
Profits.
carried.* Receipts.
10.917,618 $20,590,650 $12,102,961 $8,487,689
11.101,912 23.331,077 13,649,565 9,681,512
12,558,559 23,09$,819 14,547,910 8,550,909
10,250.073 19,720,208 12,613,052 7,107,156
10.138.059 19,504,974 12,043,302 7.356,682
10,305,978 20,477,599 12,652,676 7,824,923
9.684,189 21.211.243 13.766.066 7,445,177
12.870.455 27.163.119 16.029.914 11,133,205
10.765,681
33,704,142 20,337.430 13,366,712
14,192,056 41.807,104 29,193,748 12,613,356
1854 55.
1855-56.
18'6 57.
1857-58.
1858 59.
1859-60.
1860-61.
1861-62.
1862-63
1863-64.
Miles Stock, bonds
of road. & float, debt,
2,632 $144,S35,217
144,351,597
144,683,596
2,644
145,482,573
2,(544
144,770,938
146.918,712
2,7S2
149,411,782
2,829
146.20S.113
2,852
145,954,380
2,852
151,861,768
1855-64.
27,209 $1,464,278,676 113,079,680 $250,508,935 $156,941,625 $93,567,311
Fiscal
Dividing the above figures b y the length o f the roads, the following
results are obtained:
1854-55...............................................
1855 56...............................................
1856-57...............................................
1857 58...............................................
1858-59...............................................
1859 60...............................................
I860 61...............................................
1861-62...............................................
1862 63...............................................
1863-64...............................................
$55,029
1855 65...............................................
$53,816
53.107
4,146
4.218
4,755
3.S77
3,834
3,817
3,479
4,549
3,775
4,976
$7,821
8,848
8,746
7,459
7.339
7,584
7,624
9,601
11.818
14,659
$4,600
5,186
5,509
4,770
4,948
5,606
7.131
1(',237
$3,221
3,662
3,237
2,689
2,782
2,898
2,676
. 3,935
4,687
4,422
4,156
$9,207
$5,768
$3,439
From the foregoing tables we have the following comparative results
per m ile :
C O M P A R A T IV E R E S U L T S .
British Bailroads.............................
New York Railroads......................
Difference in favor of British — ..
53,816
15.698
4,156
$12,990
9,207
$6,225
5,768
$6,765
3,439
$115,384
11,542
$3,783
$457
$3,326
* This item is introduced solely to correspond with the British table. It is of no practical
value, as the number, though act ally the same, would, of necessity, be reduced by the constant
consolidation taking place. To he statistically effective the mileage ol passengers'ought to have
been presented.
1886.]
Brinish and New York Railroads.
121
One o f the most striking results o f operating railroads in the United
Kingdom is the moderation and uniformity o f the expenditures. The
average cost of operations, covering repairs, material and labor o f all
•kinds, for the ten years 1855-64 was £1,245 or $6,225 per mile,
£1,273 having been the highest and £1,219 the lowest in any one
.year.
The average earnings in the same years was £2,598 or
$12,990 per mile, varying from £2,661, the highest, to £2,516 the
lowest points. The result has been an average profit o f £1,353 (52
per cent o f gross earnings) per mile, or fo u r per cent on the aver
age cost o f a mile o f road.
From these figures it is evident that
the expenditures have been economized to a practical minimum and an
ascertained sum. The variations from these averages through ten years
have been too slight to admit o f questioning their permanence.
In America, or at least in New York, the average profits from operas
tions for the ten years included in the tables have been only 87^
per cent. The average earnings per mile were $9,207, and the aver
age cost of operating $5,768. f o whatever this higher cost is due,
whether the nature o f the constructions operated on, or a want o f
economy, or both, the fact is no less important, But still, with the
lower rate o f profits the capital invested in American railroads earns,
in relation to the investment, nearly 6£ per cent.
It is not supposed,
however, that this rate goes wholly to capital, as it is the practice o f
•companies in this country to use earnings, (and in many cases a very
large portion o f them.) to extend or improve their properties. In Great
Britain, on the contrary, new works and improvements are the basis -of
new capital, the whole o f earnings going to the capital that has made
them.
The territory occupied b y the railroads o f the United Kingdom
and the State o f New York is far from being o f equal extent. The
•total area o f the British Islands is 120,000 square miles and o f New
York 46,000 square miles, or in the relative proportion o f 1000 to 383.
Taking the average mileage o f existing railroads for the ten years, this
would give to the United Kingdom one mile o f railroad to every 11.5
square miles o f territory and to New York one mile to every 16.9 square
yniles.
The density o f population is also largely in favor o f the United
Kingdom, which in 1860 contained 29,293,312 inhabitants or 244 to
the square mile, while New York contained only 3,880,735 or 84 to
the square mile— the difference being about 3 to 1 in favor o f the for
mer. But the insular condition o f the British territory precludes what
New York enjoys— a transit commerce of vast extent.
In the United Kingdom railroads and their accessory structures
have been built for all time. In New York they have been construct
ed to meet successive emergencies without looking to the far future.
The one presents solidity and grandeur, the other comparative weak
ness and insufficiency.
The sequel o f these opposite conditions is,
that while the British can operate their railroads at the highest speed,
we have to be satisfied with the low est; and again, while renewals
and repairs are the bane o f American railroads, they are known to the
British as accidental rather than incidental. The cost per mile o f Brit
ish railroads, however, has been more than three times as much as
vol. tiv.— no . H.
8
[February,
Petroleum f o r 1865.
those o f New York, and such roads could only have been construct-*
ed by a people having large unemployed or badly remunerated capi
tal.
Here capital is scarce and profitably employed, and could not
possibly have been diverted to a single purpose without prejudice to the
general welfare.
PETROLEUM FOR 1865.
T he production o f Petroleum the past year has not reached the point
anticipated for it by the over sanguine. The large amount o f capital
attracted through brilliant promises during 1864, and the early part o f
1865, has received but a poor return. N ot only is this seen in dimin
ished exports, but the total receipts have fallen off, showing a dimin
ished production. F o r instance, the total amount taken for consump
tion at New York, and exported from New York, Boston, Philadelphia,
&c., was as follows for the last three years ;
Exported from New' York, bt>fe.
Taken for consumption...............
Total New Y ork....................... . . . . . . . . . . . . . . . . ................
Boston exported......................... . ................................ . . . .
Philadelphia............................ - —. . . . . *........ ................ .
Baltimore......... . . . . . . . . . . ................... . .............................. ..
Portland and elsewhere............. . . . . ........ . . . . . . . . . ...........
Total,
iX P C T lT
bbla.....,,.-.,........... ..............................
OIF C R U D E A N D
To Liverpool.
Glasgow, &c..................
Bristol.............................
Falmouth, E ....................
Grangemouth, E ............
Cork. &c......................
Bowling, E ......................
Havre ....... ....................
Marseilles........................
St. Nazaire & Rouen...
Cette.................................
Dunkirk...............- .........
Dieppe..............................
Antwerp..... ....................
Bremen................ .......... .
Amsterdam....... , .......... .
Hamburg......... . ...............
Rotterdam........................
Gottenburg.................... .
Cronstadt .— ..................
Stettin . .................. ........ .
Cadiz and Malaga............
Tarragona and Alicanta.,
Barcelona......... ................
Gibraltar and Malta.____
Oporto..... .................... ...
Naples and Palermo. . . . .
Genoa and Leghorn ____
Trieste................... ..........
Alexandria, Egypt...........
Lisbon................................
Canary Islands..................
Madeira..............................
Bilboa.................................
China and East Indies.. .
Africa.................................
Australia...........................
Otago, N. Z .....................
1863.
488*690
314,481
1864.
533,394
242,187
1865377.16^
241,161
803,171
51,235
134,893
22,896
8,552
775‘581
42,30?
194,003
23,249
1,769
618,323
37,867
307.673
25,608
3,737
1,020,747
1,086,915
993,208
R E F IN E D (IN C L U D IN G N A P T H A , E T C .), F R O M
YEARS
an d
1865, 1864, 1868
1862.
1862.
Gallons,
1,781,377
1,133 399
24,181
.........
299.356
195
791.221
135,765
1863.
Gallons.
2,156,851
2,576,381
414.943
71,912
626.176
425,334
1,532,257
1,774,890
1,167,893
......
..... ..
2*’0
2,700
61,692
.. . . . .
823,090
452,522
229,384
16,938
81,960
46,000
2,692.974
903,004
436
1,486,155
757,249
......
88,060
......
.... .
157
NEW
33,284
33,000
3,990
21,000
.........
308.450
2,239
57.115
399.674
3,000
1,295
4:30
64,662
5,125
490
3,970
655
233,622
7,850
86,942
12,230
304,165
5,500
YORK.
1864.
Gallons.
734,755
1,430.710
368,402
29,124
816,402
3,310.362
87,164
2,324.017
1,982,075
4,800
232,803
79,581
4,149.821
971,905
77,041
1,186,080
532.926
33.813
400,378
58,474
16,823
25.500
89,181
17,474
7,983
679.603
165,175
4,000
167,195
3,368
2,500
34,338
25,195
377,384
10,810
1865.
Gallons.
1,561.987
376,283
156.140
110,412
509,815
102,292
1,157,486
604,330
1,333,752
93,841
1104)99
"
1,593.528
231,983
.
....
981,766
292,569
....
891,389
53,317
97,782
44.9S8
5,128
72,742
28,205
22,615
666,611
66,371
93,703
5,244
153,818
42,170
17,090
735,891
14,880
1866.]
123
Commercial Chronicle and Review.
Sydney, N. S. W ...........................
Brazil................................................
Mexico.............................................
Cuba..................................................
Argentine Republic.......................
Cisplatine Republic.......................
Chile..................................................
Peru...................................................
British Honduras...........................
British Guiana.................................
British West Indies.......................
British North American Colonies.
Danish West Indies........................
Dutch West Indies.................. .......
French West Indies........................
Hay ti.................................................
Central America.............................
Venezuela.........................................
New Granada..................................
Porto Rico........................................
Total
113,750
54,967
18.616
213,680
7,390
13,217
17.898
56,011
9.396
18,888
2,943
4,102
7,117
2,382
4,856
1,764
1,094
37,058
25,244
.....................................................
From New York ..
Boston .......
Philadelphia.
Baltimore___
Portland.......
New Bedford.
Cleveland___
6,720,213
48,013
160.152
69,481
356,436
24,470
117,626
66,550
256,407
440
15,104
60,931
16,995
31,503
12,148
9,104
12,044
456
15,455
107,837
59,439
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
162,923
291,752
£194.936
704,627
67,416
72,852
53,326
110,840
2,052
5,800
108,'-41
104,080
10,947
18,309
31,118
13,696
5,494
89,794
58,570
43,355
19,547,604 21,335,784
14,332,132
TOTAL EXPORTS IN 1862, 1863, 1864 AND 1865.
1862.
1863.
1864.
....... gallons.............................. 6,720,278 19,547,604 21,335,784
.................................................... 1,071,100
2,049,431 1,694,307
....................................................
2,800,972
5,395,738 7,760,148
....................................................
174,830
915,866
929,971
.....................................................
120,150
342,082
70,762
Total export from the U. States.........* ................ 10,8S7,330
28,250,721
SO,<4)0
1865.
14,339,132
1,428,978
11,891,563
973,177
11,088
50.000
81.173
31,872,972
28,775,111
COMMERCIAL CHRONICLE AND REVIEW.
Uncertainty in financial matters, cause of dull business—Rates of loans and discount—New
finance bill before Congress—Specie payments and compound interest notes—Prices of U.
S. securities in London—Prices of U. S. securities in New York—Ownership of lost bonds—
Treasure movement—Failures for the year—Railroad stocks and the Mississippi—Course o
Gold and Exchange.
T ee general complaint in commercial and financial circles the past month has
been that business is dull, and that in several important departments industrial
and commercial enterprise is for the present almost
arrested.
A m ong the
causes o f this torpor a permanent place must be given to the incertitude as to
the future course o f prices. I f the policy o f contracting the currency is to be
carried forward, then there must inevitably be a general “ shrinkage ” o f prices,
and on a falling market nobody wants to buy.
Every man in business is anxious
to curtail his engagements. Dot knowing what changes may be impending in
prices and in private and publio confidence. The agitation respecting the fin
ancial policy o f the government is thus producing wide spread depression and
probably there will be no positive improvement until the course o f the Treasury
in reference to the currency is definitely marked out and settled by Congress.
A s generally happens in cases similar to the present, an unusual amount o f
unemployed funds is held by capitalists and merchants who are anxious to have
their means at eommand.
Thus larger sums o f money are offering in W all
Street every day than the very limited business now doing can find employment
for. The money market is plethoric with capital-seeking temporary borrowers,
and the deposits jr. the banks rise and fall in a very embarrassing and spasmodic
manner, as the dealers are able to withdraw
to lend
their funds for a day or
two
124
on call.
Commercial Chronicle and Review.
[F ebru ary,
These and kindred symptoms have awakened some apprehension lest a
panic should supervene.
But, really, such cautious circumspection affords the
very best ground o f confidence. F o r the panic which every body expects never
comes. A nd the short credits which are now in vogue are among the very best
safeguards against such financiul disasters.
The following have been the rates
for the various class o f loans through the month :
RATES
LOANS
Call loans..........................................
Loans on Mortgage...........................
A . 1, endorsed bills, 2 ms ...............
Good endorsed bills 3 & 4 mos . . . .
44
“
single names
Lower grades......................................
AND
DISCO U N TS.
Jan. 5.
6@ . .
6 @ 6^
7@ 8
8@ 9
8@ 10
ln@15
Jan, 12.
b@ 6
6@
7@ 8
8@ 9
9@ 10
10@15
Jan. 19.
4 @ 6
6 @ 6^
6 * @ 7£
8
8 @ 9
10 @ 1 5
Jan. 28.
6 @ 6
6 @ 7
6 i@ I t
7 f@ 8
8 @ 9
10 @ 1 5
A s stated above we do not look for any decided revival o f business, until Con
gress has indicated what is to be its action in reference to our finances.
The
bill reported by Mr. Morrill, the 8th o f January, and now before the Committee
o f W ays and Means for consolidating the public debt, &c., is, therefore, the
most important measure of the session, and many o f its features have called forth
decided opposition aud served to disturb public confidence. In the examination
o f its details, however, our readers must keep in mind the state o f things with
which the bill has to deal, and the difficulties it is designed to meet.
The chief o f these difficulties is the large amount o f our short-date floating
obligations.
O f our national debt, which amounts altogether to about 2,800
millions, some 1,100 millions are represented by long bonds, none o f which ma
ture before the year 1880. The remainder o f the debt, or almost 1 700 millions,
is o f shorter date, the larger part of it falling due in 1867 and 1868.
The
problem to be solved by the bill before us then is to raise 1,700 millions o f dol
lars during the next tw o years, or as soon thereafter as the money may be
wanted to extinguish the greenbacks and other outstanding obligations o f the
Treasury. Mr. M cCulloch, when he was here the early part o f the month, ex
pressed the opinion that the income of the Government from taxation will be
enough to pay all new claims and current expenditures.
I f so, the above-men
tioned 1,700 millions are all that will be necessary to provide for by a loan.
N ow there are some among us who say that this amount is too large for us to
raise without appealing to foreign capitalists for aid. But the Treasury report
recently presented to Congress, shows that during the last year o f the war we
raised by loans and taxes no less than $1,897,674,224. W e shall surely be able
to raise 1,700 millions in several years, if during a single year o f war we raised
1,91)0 millions, without impoverishment, without prostrating our natiooal indus
try, and without producing more than a transitory retardation o f the swift, deep
widening current o f our national wealth.
Y e t in deference to the desponding
few there has been inserted in the draft o f the new finance bill the objectionable
and unpopular feature o f a foreign loan.
Another complaint against the bill at present is that, as repotred, it lacks
unity o f purpose and is too vague and indefinite.
under it for instance is nowhere fixed.
The amount to be borrowed
In no previous loan bills, even during
1866.]
125
Commercial Chronicle and Review.
the prodigious expenses o f the war, has Congress ever failed to limit the bor
rowing power to a specific amount.
But although we know exactly how much
we shall require to borrow, the measure fixes no limits to the authority given to
the Secretary o f the Treasury to issue securities or to pledge the credit o f the
nation.
Moreover, he is to emit bonds not only for the purpose o f retiring United
States notes and other floating obligations, but he may exchange any bonds
authorized by this act for any other bonds o f the United States. This last pro
vision is interpreted to refer to the five-twenties, and to the sixes o f 1881; which
securities it is urged should be transformed into one consolidated fuud.
The
magnitude o f this change may be inferred from the fact that five-twenties amount
to $665,370,800, and the sixes o f 1881 to $282,645,800, both bearing interest
at 6 per cent in coin.
F o r our own part, however, we can scarcely believe that this plan is seriously
entertained or could be at present realized.
The time for changing the interest
on our bonds from 6 to 5 per cent, or even lower, will assuredly come.
But
before that change is possible Congress will have abundant time to consider
the best methods o f accomplishing the work.
tended for a very different purpose.
A nd the bill before us is in
That pare o f the first section, therefore,
which authorizes the exchanging o f bonds, except it can be sustained by more
adequate reasons, will run imminent risk o f being struck out.
The objects to
be accomplished by the present Congress in this part o f its financial legisla*
tion are o f the highest possible moment, and the country cannot afford to run
the risk o f having them thwarted by complications with schemes o f doubtful
practicability and more than doubtful policy. But it is generally agreed that
M r. Morrill's loan bill, in its present shape, cannot pass, and that Congress
will have to make some important modifications to render it acceptable to the
nation or adapt it to its purpose.
In the meantime, however, commercial en
terprise must be arrested and business must continue dull so long as a doubt
with regard to our future financial policy exists.
I t should be remembered by Congress that after all, the great point to be
solved is, how can we return to specie payments with the least disturbance
to our monetary and commercial interests. The fundamental great fault o f
our paper currency is evidently its
redundancy.
and the over issue has caused its depreciation.
T oo much of it is afloat,
W hatever diversity o f opinion
obtains in the public mind on other monetary questions, on this point there
is nona W e ail believe that the first thing to be done, with a view to curren
cy reform, is currency contraction. Before we can hope to resume coin pay
ments, the volume o f our paper money must be reduced.
must be withdrawn, none o f U3are wise enough to say.
IIow much of it
W e shall find out by
experience. But the best evidence at command seems to p o i-t to the conclusion
that the amount o f our paper currency will not usually exceed 350 or 400
millions in time o f specie payments.
W hatever may hereafter prove to be the
normal amount, however, we know that a very large part o f the paper cur
rency now afloat must, as soon as possible be demonetized and got out o f the
way.
126
[February,
Commercial Chronicle ana Review.
Some people argue as if this contraction o f our paper money were a work o f
the future, a voyage not yet begun, a perilous enterprise for which we have no
precedents to guide us.
But, really, the process o f contraction has been going
on around us for several months p a st; and it has proceeded ro gradually and
quietly that we have scarcely suspected, as we have seen gold fall, and merchan
dise fall, and most o f the necessaries o f life fall, that to the other causes o f this
decline o f prices was added one greater and more permanent than them all— the
appreciation of our currency, the gradual contraction o f its volume, the increas
ing growth o f its purchasing power.
I t is a noteworthy and very gratifying fact, that this contraction has been ef
fected without any o f those spasms which usually attend such changes, and is
altogether due to the compound interest notes.
They have proved to be at once
the most powerful the most satisfactory, and the most elastic o f all the methods
which have ever been devised for cheeking the inflation and contracting the
volume o f a depreciated paper money.
O f these compound notes there are at present outstanding 180,000,000 ; most
o f which have now ceased to circulate as money. The volume o f our active cur
rency has thus been lessened to a corresponding extent, and the contraction o f
the currency has produced and will continue to produce, as it goes on, a powerful
effect on prices.
N or is this result mysterious or incapable o f rational explanation.
perfect accordance with the well-known principles o f monetary science.
It is in
F or, as
the best authors tell us, there are two things which chiefly govern the deprecia
tion o f paper money, first its quantity and secondly its activity. I f we wish to
diminish the depreciation o f our currency we must diminish either its quantity
or activity or both.
Such, then, is the problem to be solved in the restoration
o f our currency.
W e shall lessen its depreciation in proportion as we either lower its quantity or
retard its activity: A s we stated before this is being done by the compound
interest notes.
These notes, when first issued, move as quickly from hand to
hand as ordinary greenbacks; but as interest accrues they circulate slowly, De
cause they are legal tender only for their face, and the holder, if he pays them
out. loses the interest.
A fter a lew months they accumulate in the vaults of banks
and elsewhere, and do not emerge from their retreat to join the current o f the
circulation except when some stringency or pressure in the m oney market sum
mons them.
And at length, when they are sufficiently fat with interest, they
slumber in their hiding place, no matter how severe the pinch and monetary spasm
may be.
Here, then, we have the problem o f contraction completely solved.
W e see a legal tender note passing through all the stages o f diminishing activity,
until at last it is, for all practical purposes, as completely demonetized and fixed
as the United States bonds themselves.
This, then, is the machinery for contracting our currency.
is now in operation.
It has stood the test o f experience.
It is a plan which
W h a t remains to be
done is to use it wisely. Let the whole mass o f greenbacks be gradually, slowly
converted into compound interest notes falling due at different dates
Let these
compound Dotes be funded into long bonds on liberal terms during their third
1866.]
127
Commercial Chronicle and Review.
year ; and finally let the banks continue to use these notes as a part o f their reserve until maturity, but not afterwards. lu other words, let these notes cease
to be legal tenders at maturity.
The uncertainty as to financial measures to be adopted by Congress has tended
to depress Government securities through the month
Towards the latter part
o f the month the news from Europe o f the delicate condition o f the finances at
London also combined to produce a general indisposition to buy United States
bonds
Later dates, however, show continued demands in England and on the
Continent for five-twenties, with a decided advance in face o f the high rate o f
interest now asked at the Bank of England, and consequently a better feeling
exists here. The following table shows the prices at London o f five-twenties and
other American securities each day, for the first two weeks of January. 1866 :
P R IC E S O P A M E R IC A S B O N D S A N D STO C K S A T X D S D O N .
-W eek ending January ft------ , ,----- Week ending January 13.Mon Tues Wed Thur Fri." Sat. Mon. Tues Wed* Tlmr Fri. Sat.
United States5'20’ s, ’82.
irginia State 5 per cents.
do
clo 6
do .
Atlan. & G. West, Newp.
section, 1st mort, 1880 .
do Pennsylva,1877 . . . .
do
do
3882.......
Erie Scrip, 6 per cent___ <S
Illinois Central, 1875, 6p.c
do
do
7 per c’ t O
do
do $100, all p’d
Marietta & Cincinnati . . .
Panama R., 2d mort, 1872
Penn. R’d Bond*. 2d mort,
do
do $50 shares
Philadelphia and Erie, 1st
mort, 1881, guaranteed
by Pennsyly ilia Bailr’d
65# 64#
50
50
41
41
64#
50
41
64# 64#
50
50
41
41
78
78
78
78
74
i # p.
81
70
78#
73
102
85
34
74
lprm
81
70
77#
73
102
85
34
75
75
78
74
74
74
Ip.
# p # p.
81
81
81
70
70
70
77#
77# 77
73
73
73
102 HW# 164#
85
85
85
34# 34
34
75
74# 74#
64# 64# 64# 64# 64# 6 5 #
ro
50
50
50
50
50
41
41
41
41
41
41
79
77
78
78
77
77
81
81
79
SO
80
80
74
74
74
74
74
74
# p # p V P %P #
#P
81
81
80
80
81
M
70
08
05
08
70
68
76# 75# 75# 75# 75% 76#
73
73
73
73
73.
102 102 102 102 102 102
85
85
85
85
85
34
34
34# 34
40
40
75
75
75
75
75
75
The prices here o f governments and the last sales on each day through the
month have been as follow s:
1866.
/—6’s, 5-20 yrs.—, i—5’s, 10-40 yrs.--*
Coup.
Reg.
Coup.
Keg.
(New Year's Bay.)
105
03#
104#
93#
105
93#
104#
102#
93 'a
105
102#
93#
....
P R IC E S O F G O VERN M EN T SEC U R ITIE S , -JA N U A R Y .
Day of
month.
Monday___ 1
Tuesday. . . 2
Wednes day 3
Thursday .. 4
Friday . . . . 5
Saturday... 6
Sundav. . . . 7
Monday___ 8
Tuesday. . . 9
Wednesd ayId
Thursday .. 11
Friday....... 12
Saturday. ..13
Sunday___14
Monday___15
Tuesday . ..16
Wednesdayl7
Thursday ..18
Friday........19
Saturday.. .20
Sunday.......21
Monday___22
Tuesday .. .23
Wednesday24
Thursday . .25
Friday....... 20
Saturday.. .27
Sunday.......28
Monday___29
Tuesday... 30
Wednes day31
io s#
103
103
103%
101#
101
101
Lowest..........
Highest. . . . .
103#
104#
10S#
104#
101#
105
i— 6’ s, 1881.----->
Coup.
Reg.
404#
104#
104#
104#
104#
103#
103#
104#
104
104
404
104#
104
104
103%
....
103#
103#
103#
103%
103#
104#
104#
104#
104#
104#
104#
104#
104#
103%
104
104#
104
103#
104
104
104
104
103%
103#
103%
103#
103
102
103
102#
102#
102
104#
7-30's,
1863.
99%
99%
98%
98%
98#
102,#
93
93%
93#93%
93#
102
...
101#
101#
93
93%
93#
93#
93%
92#
93
93
93
93
92#
92#
98%
98%
98%
98%
92#
93#
98%
98%
98%
98%
98#
98%
98%
98%
98#
98#
93#
93#
93#
93
92#
92
92
101#
102#
1 y*r
certif.
93
93#
99#
98#
99%
99%
99%
99
98%
98%
98%
98#
99
99%
98%
98%
98%
98#
98#
98%
98
98
98%
98"
98
98%
99#
98%
98#
98#
98#
1-28
Commercial Chronicle and Review.
[February,
A m ong the numerous questions o f disputed ownership o f lost or stolen bonds,
none recently raised has been o f m ore interest than that which was reported irt
the Washington correspondence o f one o f our city papers a few days since. T h e
following is the statement, as it appealed in the H e r a ld :
“ A rase was recently brought before the Treasury Department for decision of con
siderable interest to hoi lers of certificates of indebtedness and other government se
curities. The holder of a thousand dollar certificate mailed it to the department for
redemption without filling the blank space making it payable to the order o f a partic
ular person. It was stolen from the mail, and sold finally to a party in Boston, the
blank filled by this holder, and the certificate forwarded to the department the second
time. Both par ties forwarding it for redemption promptly notified the department,
anrt on its final arrival each claimed its possession. The department hold that by ne
glecting to fill the blank the New Yorker lost possession, and awarded its payment
to the Boston holder.”
It may, at first sight, be questioned whether the Treasury Department was
justified iu deciding the question o f ownership, or whether this point should not
have been left for a court o f law to determine.
But the ruling o f the courts is.
so uniform ou this point that there ia no doubt but the Treasury Department
acted rightly in the business.
The certificate is payable to the bearer just as a
bank bill, or a greenback treasury note.
The chief point of interest in this case
is, however, the view it gives o f the carelessness o f the man who mailed the docu
ment to Washington for redemption without properly cancelling it.
H ad he
written across the face of the certificate, as is usual, the words, “ P ay to the
Secretary o f tbe Treasury for redemption,’' and signed his name to this endorse
ment, the security would have been o f no value whatever to any other person but
him self; it would have been paid to nobody else ; and he would have had a claim
on the Department for the amount, even if the security itself was never found.
I t was also a proof o f carelessness to send by mail,
id
any case, a valuable docu
ment which is negotiable like a bank note by personal delivery.
A prudent matt
wuu’d send such papers by Express, as the companies are, in all cases o f loss, re
sponsible for the full amount.
The treasure movement at N ew Y o rk weekly, aDd tbe amount in banks at the
close o f each week since January I, has been as follows :
T R E A S U R E M O V E M E N T F O R 1866.
1866.
Receipts. Exports. ,--------------- ----- Sub-Treasury-— ---------- — , la banks
week
from ■ to foreign Customs Interest
Gold Certificates^ at close,
ending
California, countries, receipts, payments,
issued, returned, of week.
Jan. 6.........................................
$552,027 $2,107,341 $3,597,240 $3,122,440 $1,34,8832 $15,778,741
“ 13...................... $6S5,610
640.503 2,334,694 1,130,789 3,206,180 1,578,194 16,852,568
“ 20......................
799,706
685,894 2,754,369
574,162 2.706,403 ),928,641 15,265.372
27 .........................................
656,812 3,226,040
279,842 2,598,400 2,137,048 13,106,759>
Since Jan 1 .. . ........$1,485,316 $2,535,236 $10,422,444 $5,582,033. $11,633,420 $6,992,715 $13,106,759r
T he failures for tbe past nine years have just been published by Messrs. R . G .
Dun & Co. o f this city.
The statement is as follows for the Northern States:
1867 ............
18oft
____ . .
1859 .......... . .
m o ..........
1 8 6 1 ..........
4,'257
3,113
2.959
2,733
5,935
$265,518 000
73,608,746
61,314,000
61,7 3 9,4” 4
178,632,180
1 8 6 2 ............
$ 2 3 ,0 4 9 ,3 0 0
1 8 0 3 ............
7,899,000
1 8 6 4 ............
8^579/700
17,625,000
1 8 6 5 ............
500
Average from ’57 to ’6 5 . $7 6 ,4 7 3 ,0 0 0
From this report it appears that while 4,257 failures occurred in 1857 and
5,935 in 1861, tiiere- were no more than 500- last year and 510 the year before.
1866.]
129
Commercial Chronicle and Review.
I t is worthy o f remark that the pecuniary amount o f the failures was twice as
large in 1865 as in 1 863'and 1864.
This is partly accounted for by the fact
that the capital employed by business firms is greater than ever before. There
is an increasing tendency in our capital to move in larger masses than formerly.
Small business firms compete at more disadvantage with richer honses, and are
gradually being absorbed into them.
Thus we have more men worth $LOO,009
in some o f our large commercial cities than were reputed five years ago to be
worth $50,000. N o doubt much o f this reputed capital is fictitious. But the
power accumulating in the moneyed classes from the concentration of capital
in large masses is attracting the attention o f close observers o f the money mar
ket.
It is one o f the signs o f the times, and will probably exert no small in
fluence over the future growth o f our industrial and commercial enterprise.
Bailroad stocks have been decidedly lower during the month as will be seea
from the table below :
P R IC E S O F R A IL W A Y S H A R E S.
New York Central....................................
Hudson River..............................................
Erie .............................................................
R eadin g......................................................
Mich. So. and N. I ......................................
Illinois Central...................................
Cleveland and Pittsburg............................
Chicago and N. W ......................................
Chicago and R. I.........................................
Fort W ayne................................................
Sent. 23.
94
109$
88
109$
68
129
in
28
112 $
98f
Oct. 28.
97$
106$
92$
114$
73$
137 $
82$
30
107$
99$
Jm i!
96$
108$
91$
115$
13$
132
91$
107$
105$
96$
108$
96$
106
74$
131$
83$
35$
108
106$
-’ ID
91
101$
83$
67$
115$
78
28$
97$
98$
The movement in railroad stocks has been almost exclusively speculative and
confined to brokers and professional operators. The outside public prefer in
vesting their surplus means in Government securities to taking ventures in
stocks ; indeed, the successes o f speculation and the losses o f inexperienced dab
blers appear to have produced a very general impression in the public mind that,
to the uninitiated, W all street speculation affords much better chances for losing
money than for making i t ; and the result is that speculation is now little elseu
than a changing o f securities between brokers.
The cause o f the decline may probably be traced to the decrease in the earn
ings o f the railroads since the opening o f the Mississippi.
The events o f the
last four years appear to have almost obliterated the consciousness that we have
a great natural outlet for commerce in the far South. Gradually the products
which have been wont to flow on the bosom o f the “ Father o f W aters” to the
ocean have been directed to the railroads and canals which feed the A tlantic
cities ; and almost unconsciously N ew Y o rk
has been transacting an enormous
trade which geographical distribution has assigned to N ew Orleans.
This fact
is well illustrated by the following, showing the gross earnings of the principal
railroads leading from the Mississippi Biveu to Chicago, and from Chicago east
ward, for the years 1960-65, both inclusive. The returns for 1860 show the
trade as it was before the river was closed ; during 1861, the river being open
part o f the year, and all business paralized during the first months o f the war,
the full effect o f the change is not seen.
In 1863 the tide towards N ew Y ork
had fully set in, and has continued to increase until within the last three months
130
[February,
Commercial Chronicle and Review.
o f 1865.
Allowance, o f course, however, should be made, in examining this
statement, for the higher freight charges asked during, our currency depreciatio n :
Years.
1 8 6 0 ..
1 8 6 1 ..
1 8 6 2 ..
1 8 6 3 ..
1 8 6 4 ..
1 8 6 5 ..
Illinois
Centra).
.$ 2 ,6 6 4 ,8 4 8
. 2,899,612
. 3,445,827
. 4,571,028
. 6,329,447
. 6.837,586
Pit’bg, F .W .
& Chicago.
$2 ,3 3 5 ,3 5 4
3,031,787
3,745,310
5 ,1 32,934
7,120,466
8,438,394
Chicago &
Alton.
938,641
1,098,464
1,225,001
1,673,706
2,548,416
3,703,118
$
C. B. &
Bock I.
$1,181,003
1,261,050
1,423,439
1,969,267
3,095,470
3,223,088
Michigan
Southern.
$2 ,0 6 8 ,8 9 6
2,189,077
2,647,838
3,302,541
4,110,154
4,951,441
Michigan
Central.
$2,025,142
2,124,314
2,650,702
3,143,945
3,966,946
4,521,046
The following table compares the gross earning o f these lines for the month
o f December, 1865, and for 1864 :
Railroads.
Chicago & Northwestern.....................
Chicago <fe Alton.................................. .
Chicago & Rock Island .....................
Illinois Central......................................
Michigan Central.................................
Michigan South. <fc N. Indiana..........
Pittsburg, Fort Wayne <fc Chicago. . ,
Earn’gs \ier week—%
,-------- Gross Earnings---------,
1864.
1865.
1864.
1865.
$ 925
$ 805
$568,401
$546,609
860
799
224,022
241,582 •
1,045
1,770
3 21,036
190,227
852
827
4 97,402
603,402
857
328,869
679
376,470
700
784
366,192
411,806
1,219
1,953
914,082
570,826
The year opened with gold at 144f, gradually declining during the first week
to the neighborhood o f 140, and on the 9 th dipping to 1 3 6 J ; the fluctuations
have since then been very small, the range for the last two-thirds of the month
not having exceeded
vibrating in the meanwhile from l4 l£ to 1371. and clos
ing on the 31st at 139f.
The total range o f the month was between the prices
o f the 2d and those o f the 9th a difference o f
The following table, con
structed from the Gold Exchange Lists, shows the daily fluctuations for the
month :
144%
144%
143%
143%
143
144%
143%
142%
142%
141%
144%
143%
143
143%
141%
141%
138%
139
139
138%
139%
141%
139%
139%
139%
139%
139%
139%
136%
138%
138%
138%
139
139%
138%
139%
138%
138%
139%
Monday....................... 15 139%
Tuesday..................... 16 139%
Wednesday................ 171139%
Thursday.................... 181139%
Friday........................19! 138%
139%
139%
140%
140
138%
139%
139
139%
138%
137%
139%
139%
140%
138%
138%
Tuesday................. t. 2
Wednes day...............3
Thursday.................... 4
Friday......................... 5
Saturday.................... 6
Sunday........................7
Monday........... ...... 8
Tuesday.....................9
Wednesday................ 10
Thursday.................... 11
Friday............. : ........12
Saturday.................... 13
ao
Date.
3
Lowest.
Closing.
144%
144%
143%
142%
142%
Date.
Openi’g
■§>
s
Lowest.
COU RSE O F GOLD F O B J A N U A R Y .
bD
'3
a
Pt
O
3
138% 139% 138%
Sunday......................... 2 1 ................. ,|...................
Monday........................22,139%'139% 1138% 138%
Tuesday........................23!138% 139% 138% 139%
Wednesday..................24|139% 139% 139% 139%
Thursday......................2s|l39% 139% 1139% 139%
Friday...........................26 139% 139% j139% j 139%
Saturday...................... 27 139% 139% j139% 1139%
Sunday........................ 2 8 .......
Monday........................29 139% 140% i139% |
141%j 140%
Tuesday........................30 141
Wednesday..................31 140% 141% 139% j
January,
“
“
“
“
1866.
1865.
1864..
1863.
1862..
144% 144%
228 % 234%
151% 159%
133% 160%
par 103%
136%
197%
151%
133%
par
139%
210%
157
160 %
103%
The uncertainty as to the action o f Congress in relation to the currency, and
the recent rise in the minimum o f the Bank o f England have had a tendency not
only to maintain the prices but to foster an advance in rates.
This is espe[yol“ i
observable in the last half o f the month.
The following table shows the highest and lowest prices o f gold in this mar
ket for each month o f the years 1862-65, both inclusive :
1866.]
J ou rn a l o f B a n k in g , C u rren cy and F in a n ce .
Months.
January .........................
February........................ ...............
March............................. ...............
April......................... .. ...............
May.................................
June............................... ...............
July.................................
August............................ .............
September....................
October..........................
November...................... ...............
December......................
1862.
102%@104%
1 01*@ 102*
101X@102*
1 03*@ 109*
112*0116*
129 @188%
Y ear...........................
131
1863.
183X 0160*
152*@ 172*
139 @171 %
145*@ 157*
1 4 8 *0 1 5 4 *
140*@14SX
123%@145
1 22*@ 129*
1 2 6 *0 1 4 8 *
140%@156*
143 @154
148*@152X
1864.
151*@ 159*
157%@161
159 @169%
166%@1S4%
168 @190
193 @250
222 @285
231*@ 261*
191 @254%
189 @227%
210 @S60
212*© 243*
1865.
1 97*@ 234*
196X@216X
148% @201
1 43*@ 154*
128*@ 145*
1 3 5 *0 1 4 7 *
138X@146X
140* @ 1 45 *
142X0145
144%@149
145*@ 148*
1 44*@ 148*
122*© 172*
151%@285
128*@ 234*
The following statement shows the daily fluctuations o f foreign exchange on
London, Paris, Amsterdam, Bremen, Ham burg, and Berlin at N ew Y o r k for
the month o f January, 1866 :
COU RSE O P E X C H A N G E F O R J A N U A R Y .
London.
cts for 54d.
Days.
3.....
4..
..
5. .
6. .
7
8
9__
10.....
11....
12 ...
13.
14
15
16
17.....
18....,
19
20
21.....
..
..
------------
-------109
@10914
109 @109X
109 @109X
108X@109
108%@109
108X@109
...............
...............
108@108%
................
108X0109
108XO109
108X@103*
________108*@108X
108*@ 108*
..............
2 2 ....
2 4 ..
2 5 ..
26 . .
2 7 ..
2 5 ..
2 9 ..
3 0 ..
3 1 ..
Mth
109
109
109
109
109
Paris. Amsterdam. Bremen.
Hamburg.
centimes cts for florin, cents for cents for M.
for $.
rix $.
banco.
(New Year's Day—A Legal Holiday.)
@109X 520 @516}f 40X@4\
79X@79X 36X@36X
@109X T20 @516X 40X041
79X@ 79X 36X©36H
@109X 520 @516>i 40X041
79 © 79X 36X@36X
@ 1 0 9 * 520 @ 5 1 6 * 4 0 X 0 4 0 * 79 @ 7 9 * 36X @ 3 6 X
@109X 520 @510X 4UXO40* 79 @ 7 9 * 36X 036X
.
.
.
.
.
.
.
.
108*@108X
108X@108X
108X@108X
108X@108X
108*@108X
1 0 8 *@ 1 0 8 *
1 08*© 108*
108 @ 10S *
108 @ 10S *
520 @ 5 1 5 *
520 @515
520 @515
521X 0517*
520 @516,x
520 @516X
520 @ 5 1 7 *
520 @ 5 1 6 *
520 @ 5 1 6 *
521X@517X
522X@517X
522X@ol7X
40X@40%
40X041
40%@41
5 0 *@ 4 0 X
40X041
40%@41
4 0 *@ 4 0 X
40*040*
40X@ 40*
40X04074
40X@40%
40X@40*
521X@51SX 4 0 X @ 4 0 *
5 2 2 *@ 5 1 8 * 4 0 *@ 4 0 X
6 2 2 *@ 5 1 8 * 4 0 *@ 4 0 X
622*0518* 40 *@ 40*
5 2 2 *@ 5 1 7 * 4 0 * @ 4 0 *
5 2 2 *@ 5 1 7 * 40*@ 40%
520 @ 5 1 7 *
523X@518X
523X@518X
108 @109* 523X@515
Berlin. r
cents fo
thaler.
71X@ 71X
71J,@~1X
71X071*
71% @ 7lX
71%@71X
7 8 *@ 7 9 X
78X@ 79X
78X@ 79X
78*@ 79
78X@ 79X
78X@ 79X
36X@36X
86X@3fiX
36X@36X
36 @ 3 6 *
36X@ 36*
36X@ 36*
71X@71X
71X@71X
71X@71X
71 @ 7 1 *
71X@71X
71X @ 71*
78X@ 79X
78X@79*
78X@ 79X
7 8 *@ 7 9 X
78*@ 79
78X079
36X086*
36X@ 36*
36X@ 36*
36 @ 3 6 *
36 @36%
36 @36%
71X@71*
71X@7 X
71X@ 71*
71X@71*
71 @71 X
71 @ 71X
78*@ 79
7 8*@ 79
78X@79
7SX@79
7 8 *@ 7 8 X
78*@ 78*
36
36
36
36
36
36
@ 36*
@ 36*
@ 36*
@ 36*
@ 36X
@ 36*
36 @ 3 6 *
36 @ 3 6 *
36 @ 3 6 *
71
71
71
71
71
71
@ 71*
@ 71*
@ 71*
@ 71*
@ 71*
@ 71*
4 0 *@ 4 0 X
4 0*@ 40X
40X040*
78X@78X
78 @ 7 8 *
78 @ 7 8 *
71 @ 7 1 *
71 @71%
71 @71X
40*@41
78 @79* 36 @36X 71 @71X
JOURNAL OF BANKING, CURRENCY, AND FIANCNE.
Boston Bank Dividends—New York City Banks—Philadelphia Banks.
W f. gave last month the dividends o f the N ew Y o rk banks, showing their
profits for a series o f years. Below will be found a statement o f the Boston
banks, their dividends for 1864 and 1865, and the highest and lowest and lowest
prices o f the stock o f each for the same years, which we have prepared from the
circular o f Joseph G . M artin:
132
Journal o f Banicing, Currency, and Finance.
Capital,
1864.
B anks .
1866.
Suffolk National................................................
Third National..................................................
Tremont National............................................
Webster (National)..........................................
1864.
‘C
a
<<
h
O
O
■e
P4
u
o
O
Highest
and
lowest.
1865. ^
Highest
and
lowest.
94 -110
97^-111
4
4
5
99%-121% 97 -120
4 10
5
5
5
5 103%-120 105 -117
9>»%-103
90 -102
4
4
4
4
4 20
63 - 94% 6 0 - 8 3
5
5
6 113 -125 117%-128
98 -103
4
94 -104
4
5
98%-108%
4
4 102 -123
4
1(15
-140
3*
104
-131
15
3%
4
5
5 100 -117% 105 -116
5
6
5
97%-105 101 -106
4
9+ 109 -135 110 -168%
4
5
98%-10S 103>£-112
4X 5
5
5
6 118 -150 125%-134
5
5 120 -140 115 -169
5
6
5
6 102 -125 120 -136
4
4
4 25
97%-115 104 -130
4
4 20 12 128 -141 118&-150
0
7 127 -156% U2K-174
8
6
6 105 -115VT 115%-130
4
5
5
4
4
98^-118^1 93V-113
4
5
4 $72 -103% 98%-106
4 20
4
4 10
5 106 -135 107 -160
4
90 -105% 92%-107
5
3% 3% 5
4
4
4
5 108 -114 100 -124
99%-114% 102 -118%
5
5
3% 4
5
97 -110 101%-116
200.000 4
4% 10
5
5
5 112 -125 110 -125
1.000,000 4
96%-114% 96%-105
4
5
5
1,000,000 3
95 -125
1,000,000 3% 3% 25* 4% 97 -110
85 -104% 94%-102%
4
4
100,700 3
4X
5 %5
98%-103% 102%-115
4
1,000,000 3
4 10
6 104%-118 115 -130
1,000.000 4
1.000.001 4
5
7% 7X 112%-130% 124 -140X
96 -105% 99 -107
4
4
5
750,000 4
6
5
6 129 -156% 123%-150
1,000,000 | 5
67 -108
a.ono.non: sac 13% 4
63 - 90
4
5 114 -242 113 -123
5
0
1.500.000 5
8
4
95 -101% 97 -109
'300,000
n ew
88%-105
3
600,000 3
3% 3X 90%-103
5 114%-148 105 -146
3.090.000 4
4% 4
4 10 112%-140 110 -140
4
1,000,000 10
6 100 -125% 107 -125
4
6
750,00C 4
4
8
5 100 -115 102 -115
1,500,001 4
$750,000
1,090,000
1.000,000
750.000
900.000
500.000
200.000
1,000,000
1,000,000
2,000,000
500.000
1,000.000
1.000,000
1,000,000
1,000,000
First National................................................... 1,000,000
400.000
1,000,000
750.000
1,000,000
750.000
800.000
800.000
400.000
250.000
Second National...............................................
1865.
Janu’ry,
[February,
3
4
5
3
4
5
4
4
3%
4
4
4
4
5
5
A large number o f these banks (non all National) have paid extra dividends
the past two years (on re-organization under the United States law,) which we
give in detail below :
Atlas, 10 per cent, regular and extra, April, 1865.
Blackstone, 20 per cent, in stock, December, 1864.
Boston, 20 per cent, December, 1864, and 20 per cent, regular and extra, Oct. 2, 1865.
Boylston, 25 per cent, in stock, April 1, 1865.
Broadway, 12 per cent, in stock, December, 1864.
City, 10 per cent, in gold (selling at 235), Dec. 13, 1864.
Columbian, 15 per cent, regular and extra, Oct. 2, 1865.
Eagle, 9 per cent, regular and extra, Oct. 2, 1865.
Exchange, 20 per cent, Jan. 2, 1865,
Faneuil Hall, 50 per cent, April 1,1865.
Freeman’ s, 25 per cent, regular and extra, Oct. 2, 1865.
Globe, 20 per cent, April 1, and 12 per cent, Oct. 2,1865, regular and extra.
Hamilton, 8 per cent, regular and extra, April 1, 1864, and 60 per cent, March 1, 1865.
Hide and Leather, 5 per cent, Jan. 10, 1865.
Howard, 12% per cent, in stock, March 1,1865.
Market, $20 per share of $70, in stock, and no cash dividend Oct. 1,1864; then assessed $10
per share, raising the par from $70 to $100.
Massachusetts, 10 per cent, regular and extra, April 1, and 10 per cent April 29, 1865.
* Columbian, 3 per cent in gold, April, 1856. t Eagle, actual sale at auction, Sept. 23. %North
America, 25 per cent in stock; no cash dividend April, 1865. § State, par 100, since May; pre
viously, 69. II Third National, for first ten months. Pawners’ Bank, surplus over 8 per cent
given to charity.
1866.]
133
The United States Debt.
Mechanics’ , 20 per cent, April, 1865.
Mount Vernon, 10 per cent, regular and extra, April 1, 1865.
Mutual Redemption, 20 per cent, in stock, October, 1864.
New England, 25 per cent, Feb. 6, 1865.
North, 16 2-3 per cent, in stock, Nov. 21, 1864.
North America, 25 per cent, in stock, and no cash dividend April 1, 1865.
Revere, 10 per cent, regular and extra, April 1, lr-65.
Second National, one new share to nine old, October, 1864.
Shawmut, 10 per cent, March 6, 1865.
Shoe and Leather, 25 per cent, March 1,1865.
State, $8 per share, regular and extra, October, 1864. $6 2-3, in stock, May, 1865; and par
raised from $60 to $100, giving two new for three old shares.
Suffolk, 128 per cent, dim. 10, 1865.
Tremont, 33% per cent, in stock, Feb. 1,1865.
Union, 6 per cent, April 1, 1864, and 10, regular and extra, Oct. 2,1865.
Webster, 8 per cent, regular and extra, April 1,1865.
The Bank Statement for this city the last week o f the month shows a heavy
loss o f specie, which is due to the large withdrawals for the payment o f customs
duties.
The several items compare as follows with the returns o f the previous
weeks o f the month :
N E W Y O R K C IT Y B A N K R E T U R N S .
Date.
Loans.
Jan. 6, 1866.. $233,185,059
“ 13,............ 234.938,193
“ 20 ............. 239,337,726
“ 27 ............. 240,407,836
Specie.
Circulation. Deposits.
Legal Tend’ s. Ag. clear’gs
$15,778,741 $18,588,428 $195,482,254 $71,617,487 $370,617,523
16,852,568
19,162.917
197,766.999
73,019.957
608,082,837
15,265,327
20.475,707
198,816,248
72,799,892
508,949,311
13,106,759
20,965,883
195,012,451
70,319,146
516,323,672
T he returns o f the Philadelphia Banks have been as follows ;
P H IL A D E L P H IA B A N K R E T U R N S .
Date.
Legal Tenders.
Jan. 2, 1866..................................
$17,181,229
“ 8 ,..........................................
17,236.320
“ 15..........................................
17,267,412
“ 22 ........................................
17,052,559
“ 29..........................................
16,244,277
Loans.
$45,941,001
46,774,150
47.350,428
47,254,622
47,607,558
Specie.
Circulation. Deposits.
$890,822 $7,226,369 $35,342,306
983,685
7.319,528
36,618,'04
1,007,186
7.357,972
36,947,700
1,012,980
7,411,337
36,214,653
1,008,825
7,432,535
35,460,881
THE UNITED STATES DEBT.
D E B T B E A R IN G IN T E R E S T IN CO IN .
Denominations.
6 per cent, due December 31,1867......................
6
do
July 1,1868...................................
5
do
January 1, 1874 ..........................
5
do
January 1, 1871............................
6
do
December 31,1880.......................
6
do
June 30, 1881................................
6
do
June 30, 1861, exch’ed for 7.30s
6
do
May 1,1867-82 (5.20 years)........
6
do
Novemberl, 1869-84 (5.20 years)
6
do
November 1,1870-85 (5.20 years)
5
do
March 1, 1874-1904 (10.40s) . . .
6
do
July 1 , ’81 (Oregon war)............
6
do
June 30,1881................................
Aggregate of debt bearing coin interest.
November 30.
$9,415,250
8,908,332
20,000,000
7,022,000
18,415,000
50,000,000
139,252,450
514,780,500
1,000,000,000
50,590,300
172,770,100
1,016,000
75,000,000
$1,167,169,942
Jan. 1, l c66. Feb. 1, 1866.
$9,415,250
$9,415,250
8,908,342
8,908,341
20 , 000,000
20 , 000.000
7,022,000
7.022.000
18,415.000
18,415,000
50.000. 000
50.000. 000
139,331,000
139,233,250
514,780,500
514,780,500
100.000.
50,590,300
172,770.100
1,016,OCX)
75,000,000
000 100,000 000
50,590,300
172,769,100
1.016.000
75.000.
$1,167,148,292 $1,161,149,742
D E B T B E A R IN G IN T E R E S T I N L A W F U L M O N E Y .
4 per cent Temporary Loan ( in
!
6
do
5
do
6
do
6
do
6
do
7.20 do
7.30 do
7.30 do
£
) ...........
£
Certificates (one year)..........................
One and two-years’ notes..................
Three years’ comp, interest notes...
Thirty-year bonds, ( ent’ l Pacific R.)
do
(Union Pacific R. E. Div.)
Three years’ treasury notes, 1st series
do
do
2d series
do
do
3d series
Aggregate of debt bearing lawful money ln t...
$612,228)
21,644,710 }■
67,266,168 j
55,921.000
32,536,901
167,012,141
1,898,000
640.000
300,000,000
300,000,000
230,000,000
$1,177,531,149
97,257,195
$113,755,840
60,667,000
8,536,900
18',012,141
2,362.000
640.000
300,000,000
300,000,000
230,000,000
60,637,000
8,536,900
180,012.141
2,362 000
992,000
300,000,000
300,000,000
230,000,000
$1,179,475,236
$1,197,295,S81
000
134
The United States Debt.
[February,
D E B T O N W H IC H I N T E R E S T H A S C EASED .
7.30 per cent Three years’ notes........................
do
Texas indemnity bonds.................
Other bonds and notes..........................................
$260,500
726,000
200,980
$240,000
726,000
200,880
$233,500
665.000
200,830
Aggregate of debt on which int. has ceased. . .
$1,187,480
$1,163,880
$1,099,330
$400,000,000
23,902,223
26,553,244
D E B T B E A R IN G N O I N T E R E S T .
United States Notes..............................................
do
do (in redemp. of the temp loan)
Fractional currency................................................
$398,581,194 )
28,160,202)
26,108,197
$426,231,390
Currency...................................
Gold certificates of deposit...
Uncalled for pay requisitions.
$452,850,264
7,200,440
509,231
$452,231,810
7,288.140
1,220,006
$450,455,467
8,391,080
Aggregate of debt bearing no interest.
Amount in Treasury—
C o in .......................................................
Currency...............................................
$460,550,264
$459,519,950
$458,846,547
Total in Treasury.
26000,420
47,224,379
44,587,141
45,735,551
44,993,271
51,443,162
56,050,186
$91,811,520
$90,729,822
$107,493,348
R E C A P IT U L A T IO N .
Debt bearing interest in coin.............................
Debt bearing interest in lawful money.............
Debt on which interest has ceased....................
Debt bearing no interest (currency)..................
Uncalled for requisitions.....................................
$1,167,169,942
1,177,531,149
1,187,480
460,047,033
509,231
$1,167,148,292
1,179,475,230
1,166.880
459,519,950
.............
$1,167,149,742
1,197,295 881
1,373,920
458,846,547
Aggregate debts of all kinds...............................
Cash in treasury.....................................................
$2,806,444,835
91,811,520
$2,807,310,358
90,728,822
$2,824,391,500
107,493,348
A N N U A L IN T E R E S T P A Y A B L E ON D E B T .
Payable in gold.......................................................
Payable in lawful money.......................................
$68,032,275
70,864,680
$68,030,976
70,186,131
Aggregate amount of int. payable annually—
not including int. on the 3 years1comp. int.
notes, which is payable only at maturity___
$138,896,955
$138,217,107
L E G A L T E N D E R N O T E S IN C IR C U L A T IO N .
One and two years’ 5 per cent notes..................
United States notes (currency)...........................
Three years’ 6 per cent compound int. notes..
Aggregate legal tender notes in circulation___
$32,536,901
426,741,396
167,012,141
$626,290,438
$8,536,900
426,231.390
180.012,141
$8,536,900
423.902,223
180,012,141
$644,780,431
$612,451,264
INSURANCE DIVIDENDS.
T he following average dividends have been paid by N ew Y ork Fire Insur
ance Companies for the last five years:
No. of
Year ending Dec. 31.
Companies,
1860 .........................................
96
1862 ..........................................
95
1862 .........................................
96
1863 .................................. . .
101
1864 .........................................
107
Total
capital Dec. 81.
$ 20,482,860
20,282,860
20,432,860
23,632,860
28,807,070
Per centage
of Dividends.
1 2 .0 5 4
1 0 .4 6 1
1 0 .0 0 3
8 567
8 .6 2 1
Amount
of Dividends.
$2,469,090 05
2,121,788 76
2,043,898 01
2,024,742 51
2,483,370 94
The dividends paid in 1864 only about equal the dividends o f 1860, although
the amount o f capital has increased over $8,000,000.
The general impression
prevailing, that fire insurance stocks ordinarily pay excessive dividends, is thus
shown by the above table to be a popular delusion.
Whenever heavy dividends
are paid, the foundations for such payment must be laid on many years o f ex
perience and accumulation guided by superior qualifications and acquirements in
the officers, managers, and agents.
1866.]
TREASU RE M OVEM EN T A T N E W YORK FO R TH E LAST SEVEN Y E A R S.
Statement of the movement of treasure at New York, showing the amounts received from California, foreign ports, and the interior, and the amounts shipped
to foreign ports and the interior monthly and yearly for the seven years ending December 31,1865; also the amount in banks and the Sub-Treasury at the com
mencement and close of each month and year—the whole forming a complete history of the movement of treasure at this port for the period stated.
Months, etc.
January,.............
February............
March..................
April....................
May.....................
June.................. .
July.....................
A u g u st.............
September.........
October..............
November...........
December...........
30,054,450
21,531,786
2,137,011
37,532,311
61,201,108
Treas. in
^—Treasure withdrawn from market.—n banks and
Sub-Treasury
E xported
Returned
to foreign
inland and Aggregate
on last of
month.
ports.
to hoards, withdrawn.
$3,184,853
$30,342,250
$3,184,853
$
34.522,341
1,023,201
1,021,201
381.913
36,851,995
381,913
39*897,087
871,249
871,249
42,969,200
7,255,071
7,255,071
44,099.101
5,199.472
5,199,472
721,986
723,986
49,432,500
52,404,893
1,654,898
1,554,398
46.595.974
2,494.973
8,043,589
5,548,616
44,566,493
4,588,511
2,516,226
2,072,285
2,046,180
50,695,037
2,046,180
53.630.974
2,752,161
2,752,161
30,003,683
$45,422,079
46,126,367
48,961,402
48,300,899
43,025,255
37,435,007
35,207,937
34,207,813
34,779,012
36,451,088
36,227,930
36,157,827
$5,459,079
3,015,367
1,800,559
5,883,077
6,460,930
5,170,551
3,309,887
1,001,014
2,835,398
2,496,221
7,267,662
6,103,377
83*457,080
50,803,122
7,620,901
37,624,584
53,630,974
January...
February..
March____
April.........
May...........
June.........
July...........
August___
September
October....
November
December.
Year 1864.
$37,992,534
39.963.000
43.111.000
47.164,843
41,025,220
36,564,325
31,057,550
31,898,050
33,206,799
31,943,614
33,954,867
28,5)60,268
$939,201
1,250,069
1,121,338
854,242
933,770
723,951
711.645
1,241,155
1,089,159
S55,378
882.276
2,205,679
$141,790
88,150
104,437
285,814
660,092
146,731
128.052
245,858
58,220
129,775
161,627
114,976
$6,348,554
4,825,148
4,024,627
37,992,534
12*907,803
2*265,522
30,291,221
406,173
3,310,690
822,750
324,834
3,522,321
1,229,160
4,876,964
$7,429,545
6,163,367
5,850,402
1,140,056
2,000,035
870,682
4,150,387
2,309,763
1,572,213
4,507,474
2,273,063
7,197,559
1,206,906
$5,459,079
3,015,367
1,800,559
7,275,679
6,460,930
6,377,457
3,309,887
1,001,014
2,835,398
2,496,221
7,267,662
6,103,377
$39,963,000
43,111,000
47,160,843
41,025,220
86,564,325
31,057,550
31,898,050
33,206,799
31,943,614
33,954,867
28,9(50,268
30,054,450
45,464,546
2*599,508
53,402,630
30,054,450
$•
1,392,602
135
91,255,558
18 64.
Y ork.
Year 1S65....
------- Accessions of treasure during month, etc.
Total sup
Received
Imported From inland
ply of treas.
from foreign sources
Aggregate for month,
from
& hoards.
accessions.
California.
ports.
etc.
$52,268
$1,376,928
$3,472,653
$2,043,457
$33^527,103
4,181,853
5,203,292
106,701
35,545,542
914,735
243,242
75)9,350
2,711,567
1,668,975
37,233.908
1,372,821
236,492
3,916,311
2,307,025
40,768,336
177,085
8,85)2,448
10,327,184
50,224,271
1,257,651
249,732
5,329,172
6,329,373
49,298,573
750,469
4,710,940
6,057.385
1,092,805
253,640
50,156,486
4,526,791
182,072
2,668,542
53,959,291
1,676,177
194,224
2,234,670
54,639,563
2,040,446
77,942
2,559,030
49,155,004
2,481,088
236,526
5,985,523
8,174,724
52,741,217
1,952,675
2,214,731
127,084
6,688.098
56,383,135
3,346,283
Treasure M ovem en t a t M e w
1865.
Treasure in
banks and
Sub-T easnry
on 1st of
month.
$30,054,450
30,3*12,250
34,522,341
36,851.995
351,897,087
42,969,200
44,099,101
49,432.500
52,404,893
46,595,5)74
44,566,493
50,695,037
1863
Tear 1863.........
Year 1862.........
January.................. . . .
February.................
40,971,000
12,207,320
41,050,421
37,338,770
40,160.452
38.012,019
39,146.457
36,863,000
47,758,000
37,827,000
41,381,000
40,800,000
39,153,000
$2,199,533
2.250,795
1,846,752
1,834,117
1,939.771
1,911,099
1,961,468
2,070,198
2,641,918
2,337.298
2,651,211
1,435,627
$163,658
62.007
88,327
26.152
110,388
61.023
219.001
92,703
121,318
256.676
109,708
78,316
29,030,000
25,079,787
1,390,277
29,659,711
31,335,000
34,353,000
35,729.000
$30,100,000
40,000,000
55.700.000
83,800,000
$4,185,105
3,622.893
2,370,897
2,951,253
1,977,827
2,012,062
2,055,368
4,245,755
2,815,243
2,980,815
$7,262,229
2,274.067
5.546.406
1,953.001
3,486,812
5,387,153
6,996.498
1,049,552
1,231,012
639,328
■Press, ftf
i—Treasure withdrawn from market.—
banks and
lb-Treasury
Returned
Exported
inland and Aggregate on last of
to foreign
month.
ports.
to hoards. withdrawn
$4,624,574
$40,394,786
$4,624,574
41,050,421
3.965.664
3,905.664
6,585.442
37.338,770
6,5,85,442
38,405.314
1,972.834
1,972,834
40,160,452
2,115,679
2.115,679
42.641.085
1.367,774
1.367,774
39,644.227
5,268,881
5,268,881
38.022,019
3,465,261
3,465.261
39,146.457
3,480,385
3.480,385
38,370,251
6.210.156
6.210.156
36,847,190
5,438,363
5,438,363
37,992,534
5,259,053
5,259,053
47,775,600
87,746,590
49,754,056
49,754,056
37,992,534
1862.
$921,794
$3.284.9S5
3,142,406
5,455,208
3,554 154
5,489,233
3*553,406
5,413,675
5,781,477
7,831,636
6.362,492
8,334.614
6,781,868
8,962,337
3,782,532
1,619,031
3,876,683
6,639,919
3.532,545
6,126,519
1,805,33*
4,566,251
3,976,169
5,490,112
$32,314,985
35.111,819
36,824,233
39,766,675
43,560,636
46,730.614
45,825.337
41.540,532
44,466.919
47,507,519
45,366,251
44,643,112
$2,658,274
3,776.919
2,471,233
4,037,675
5,164.636
9,867,614
8,0 7,337
3,713,532
3,085,919
6,707.519
6,213,251
3,673,1: 2
$2,658,274
3,776,949
2,47 ,233
4,037,675
5,164,636
9,867,614
8,067,337
3,713,532
3,085,919
6,707,519
6,213,251
3,673,112
$29,656,711
31.335.000
34,.353,000
35.729.000
38.396.000
36.863.000
37.758.000
37.827.000
41.381.000
40.800.000
30.153.000
40.971.000
11,378,021
100,408,021
59,437,021
69,437,021
40,971,000
1861.
$11,447,334
5,896.960
7.917,303
4,90-1,254
5,464,639
7,399,215
9,451,866
6,295,307
4,046,255
3,520,143
$41,547,334
45,89',960
52,617,303
57,204,254
57,864.639
64,999,215
65,151,866
67,195.307
62,346,255
57,320,143
$58,894
1,102,926
301,802
1,412,674
128,900
244,242
11,020
3,600
15,756
15,038
$1,542,334
1,196,960
317.303
4,804,254
264.639
9,299.215
3.251.866
8,895,307
8,546,355
6,320,143
$40,000,000
44.700.000
52.300.000
52.400.000
57.600.000
55.700.000
61.900.000
58.300.000
53.800.000
51.900.000
33,040,001
43,907,957
$1,488,440
94.034
15,501
3,391,580
135,739
9,054,973
3,240,846
8,891.707
8,530,499
6,305,105
[February,
May..........................
September.............
October..................
1,528,279
Total supply of treas.
for month,
etc.
$45,019,360
45,016,085
43,924,212
40,438,148
42,276,131
44,008,859
44,913,108
41,477,280
42.626.842
44,580,407
42,285,553
43,251,587
Y ork.
January..................
February.................
March......................
April........................ . .
May.................. .......
June.........................
July.........................
August....................
September.............
October..................
November..............
December...............
36,847,190
,------ Accessions of treasure during month, etc.------ ,
Received
Imported From inland
from
from foreign sources
Aggregate
California.
ports.
& hoards.
accessions.
$2,337,682
$1,609,382
$4,048,370
$101,906
951,823
213.971
3,455.505
4,621,299
2,873,791
1,697,176
123,616
1.052,999
724,934
107.061
2,267.383
3,099,378
776,122
2,837,478
3,810,817
197.217
2,929,224
809,176
109.997
3,848,397
182.245
1,363,751
2,272,023
726,027
888,063
831,113
113,877
1,833,053
78,231
3,786,333
4,614.823
750,259
4.322-998
1,032.899
78,053
5,433.950
103,144
3,099,137
8,915,392
713,021
5,427,748
118,961
6,404,397
857,688
T rea su re M ovem en t at N e w
Months, etc.
January.................. . . . .
February................
March.....................
April........................
May..........................
June........................
July.........................
August...................
September..............
October..................
November...............
December...............
Treasure in.
banks and
Sub-Treasury
on 1st of
month.
$40,971,000
51,100,000
53,800,000
2,584,343
2,684,389
908,825
358,5130
Year 1S61.................
30,100,000
34,485,949
Tear 1800................
54.593,167
56,842,919
48.385
893,013
744,782
26,919,906
793,167
27,812,919
53,800,000
29,030,000
87,088,413
71,574,362
101,674,362
4,236,250
68,408,112
72,644,362
29,030,000
$30,461,894
32,747,883
33,381,663
33,650,134
35,959,936
36,342,080
33,563,985
29,954,815
28,158,7:14
29,006,395
30,587,428
31,301,892
$853,562
977,009
2,381,663
2,965,500
5,559,936
8,842,080
6,563,985
7,454,815
3,758,734
2,106,395
525,091
202,401
$308,332
370,874
9,062,.337
1,002,191
$1,161,894
1,347,883
2,381,663
3,120,734
5,559,936
8,842,080
6,563,985
7.454,815
3,758,734
2,106,395
9,587.428
1,204,892
$29,300,P00
31.400.000
31,000,000
30,530,000
30,400,000
27,500,000
27,000,000
22,500,000
24,400.000
26,900,000
21,000,000
30,100,000
$26,590,000
29.300,000
31,400,000
31,000.' 00
30,5:30,000
30,400,000
27,500,000
27,000,000
22,500.000
24,400,000
20,900,000
21,000,000
$3,643,844
3,252,708
2,404,550
2,601,548
2,762,094
2,927,232
2,21S,174
2,790,893
2,928,881
2.678,866
3,240,630
4,130,851
$228,050
195,175
85,094
49,186
96,060
38,272
64.351
140,750
255,695
1,083.838
446,798
6,174,041
1860.
$3,871,894
$ .............
3,447,883
2,981,663
492,019
2,650,734
2,571,782
5,429,936
5,942,080
2,976,576
3,781,460
6,063,985
23,172
2,954,815
2,474,158
5,658,734
4,606,395
843,691
3,687,428
10,304,892
26,590,000
34,580,271
8,852,330
13,162,858
January.........................
February........................
March.............................
April...............................
May.................................
June................................
July................................
August...........................
September.....................
October..........................
Novemher ...
December......................
$32.2&3,000
32 320.000
34,860,000
33,620,000
33,400,000
32,870,000
28.910,000
28,230.000
25,800,000
26,330,000
24,310,000
26,120,000
$2,587,013
2.607.890
1,966 414
3,127,562
3 418,784
3,555.215
3.881.861
3,986,606
4,088.369
3,805,894
3.289,449
3,277,663
$71,308
92,200
81.666
272,441
122.436
485,892
175,139
348,419
184,553
630,646
167,087
184,634
Tear 1859 .............
32,233,000
89,592,720
2,816,421
' $30,054,450
$21,531,786
37,992,534
12,907,803
40.971,000
12,207,320
29,030,000
25,079,787
30,100,000
34,485,949
34,580,271
26.590.000
32,233,000 :? 30,592,720
[$2,137,011
2,265,522
1,528,279
1,390.277
37,088,413
8,852.330
2,816,421
18(55..................................
1864..................................
1863.................................
1862.................................
X861..................................
tsoo..................................
1859............. ..................
Six years, 1860-65. . .
$32,233,000
180,385,636
56,078,253
155,234
__ : ___
56,595,459
83,185,459
42,191,171
10,894,288
53,085,459
30,100,000
1859.
$2,658,321
* ............
2,211,337
4,911,427
55.597
2,103,677
2.639.164
6,039.167
7,349,812
10.891,1-32
4,041,107
9.371,019
5,314,019
4,3:15,025
8,797,681
4,524,759
4,436.540
6,193,123
2,736,587
3,402,297
$34,891,321
37.231,427
36.963,677
39.659,167
44.291,032
36.911,107
38.281,019
32.565,025
34.597,681
30.766,540
30.503.123
29,582,297
$2,305,688
2.371,427
3.343.677
6,259,167
11.421,032
7,496,981
10,051,019
6,409.783
8,267,681
5,344,159
4,333,123
2,062,129
$205,633
930,168
$2,571,321
2.371,427
3.341.617
6,259.167
11,421.032
8,001.107
10,051,1*19
6.765.025
8.267,681
6,456,540
4,383.123
2,992,297
$32,320,000
34.860.000
33.020.000
33,40n.000
32.870,000
28.910.000
28,230,000
25/06,000
26,830.000
24,310,30n
26,120,000
26,590,00”
67,240,416
99,473,416
69,715,866
3,167,550
72,883,416
26,59u,000
R e c a p itu la tio n .
$37,532,311
$61,201,103
30,291,221
45,464,546
33.040,001
46,775,600
71,378,021
43,907,957
71,574,362
56,595.459
13.162,858
24,831,275
67,240 416
$91,255,558
83,457.080
87,746 590
100,408,021
101,674.362
83,185,457
99,473,416
$30,003,633
50.S03.122
49,754.056
59,437,021
4.236,250
42,191,171
69,715,866
$7,620,901
2,599,508
68,408,112
10,894,286
3,167,550
$37,624,584
53,402,630
49,754,056
59,437,021
72,644,362
53.085,459
72,883,416
$53,630,974
30,054.450
37,992,534
40,971,000
19.030.000
30,100.000
26,590,000
419,229,513
452,462,502
306,141,169
92,690,857
398,831,526
53,630,974
24,831,275
182,765,623
504,126
355,242
1,112,881
Treasure M o vem en t ut N e w Y o rk .
January..........................
February........................
March.............................
April...............................
May.................................
June...............................
J u ly................................
August....... ...................
September....................
October..........................
November......................
December......................
8,49.3,167
3,042,919
1866.]
VOL. LIV.— NO. II.
November......................
December.......................
138
M AN U FA CTU R ES' IN U N ITED STA TE S D U R IN G Y E A R E N D IN G JU N E 1, i860.
A U liH K U A T E K TA TISI ICE OK M A N U F A C 1UBES.
W e take from the T ribune the following valuable table o f the aggregate manufactures produced in the United States during the year
No. of
establishments.
Maine....................................................
3,810
Now Hampshire.................................. .
2,592
....................................
Vermont
1,883
Massachusetts......................................
8,170
Khode Island
................................... .
1.191
Crtunectieut.......................................... .
3,019
States and Territories.
Total in New England States
Capital
invested.
$22,044,020
23,274,094
9,498.617
132,702,327
24,278,295
45,590,430
Average No. of hands
employed.
t-------------- <Cost of
Males.
raw material.
Females.
9,792
$21,553.0(i6
21,827
13,961
18,379
20,530.857
8,563
1,934
7.608.858
71,153
146,268
135,053.721
19.858,515
20,795
11,695
40,909,090
44,002
20,467
Annual
cost of
labor.
$8,368,691
8,110,561
3,004,9S6
56,960,913
8,760,125
19,026,196
of
the statistics o f manufactures in the
Value of
annual
Annual Value of Product.
Per cent product
«— - ■
$
capita
increase.
In
1850.
In 1S60.
$60 78
$24,661,057
54.4
$38,193,254
115 27
62.2
23.164,503
37,586,453
46 45
8,570.920
70.8
14,637,807
207 58
62.
157,743,994
255.545,922
84.
233 14
22,117,688
40,711,296
178 04
73.8
81,924,555
47,114,585
.
20,671
257,477,783
245,523,107
262,824
129,002
104,231,478
468,599,287
283,372,747
65.36
New York ......................
.
New Jersey.............................
Pennsylvania........................................ .
Delaware.................................
.
Maryland
...................................
District of Columbia........................... .
22,624
4,173
22,363
615
3,083
429
172,895,652
40,521,048
190,055,904
5,452,887
23,230,608
2,905,805
214,813,061
41,429,100
153,477,698
6,028,918
25,494,007
2,884,185
177,885
43,193
182,593
5,465
21,630
2,653
53,227
12,829
39,539
956
6,773
495
65,446,759
16,277,337
60,369,165
1,905,754
7,190,672
1,139,154
379,170,939
76,306,104
290,121,188
9,892,902
41,735,157
5,412,102
237,597.249
39,851,256
155.044,910
4,649,296
33,043,892
2,690,258
59.45
91.4
87.1
117.78
26.3
101.
435,061,964
444,126,969
433,424
113,819
152,328,841
802,638,392
472,876,861
69.67
11,123
5,323
3,443
4.268
3,064
562
1,939
3,157
3,450
344
107
57,295,303
18,451,121
23,808,226
27,548.563
15,831,581
2,388,310
7,247,130
20.034,220
20.256,579
1,084, 35
266,575
69,800,270
27,142,597
17,635,611
35,558,782
17,137,334
1,904.070
8.612.259
23,849.941
22,295,759
1,444,975
237,215
65,749
20,563
22,144
22,439
14,641
2,104
6,142
18,628
19,587
1,700
334
9,853
732
1,046
479
773
19
165
1,053
1,671
35
2
22,302,989
6,318,335
6,735,047
7,637.921
4,268,708
712,214
1,922,417
6,669,916
6,020,082
880,346
105,332
121,691.148
42,803,469
32,658.356
57,580,886
27,849,467
3,373,172
13,971,325
41,782,731
37,931,240
4,357,408
607,328
62,692,279
18,725,423
11,169,002
* 16,534,272
9,293,068
58,300
3,551,783
24.024,418
21,710,212
94.1
128.5
192.4
248.3
199.9
56.86
293.3
71.3
74.7
Total in Western States............. .
36,785
194,212,543
225,618,813
194,081
15,828
63,573,307
384,606,530
168,058,757
96 31
®
128.8
61
54
82
59
74
08
52
31
43
83
35
19
20
85
32
30
21
01
69
59
63
89
69
70
35
82
79
01
37 53
[February,
53,287
97
113
99
89
60
72
1860.
Total in Middle States............... .
Ohio ..................................................... .
Indiana...................................................
Michigan...............................................
Illinois...................................................
Wisconsin............................................
Minnesota.............................................
Iowa.......................................................
Missouri................................................
Kentucky.............................................
Kansas...................................................
Nebraska Territory....................
149 46
M a nu factu res in TL.iled States,
ending June 1. 1860. It was prepared by Edward Y ou n g, of Philadelphia, who had charge
United States Census Office, until it was turned over to the Land Office :
26.fl35.5fi0
9,693,703
6.931,7 6
40,890,275
1,874,125
9,098,181
7,151,172
8,272.450
4,381,492
1.316,610
14,426,261
30,840,681
10,2 3,228
6,198,881
9,986,532
874.506
6,489,963
6,738-486
8,367,372
8,146,630
1,280,503
9,416,514
82,606
12,104
6,096
9.492
2,297
6,792
7,873
3,333
4.572
1,831
11,582
8,568
2.113
898
2,083
157
1,097
916
in
203
46
946
8,544,117
2,689,441
1,380,027
2,925,148
619.840
2,132,940
8,683.679
1,162,756
1,618,320
554,240
8,370,687
60,652,124
16,678,698
8,615,195
16.925,564
2,447.909
10,588,566
15,587,473
6,577,202
6,590 687
2,880,578
17,987,225
29,602,507
9,111,050
7,045,477
7,082,075
668,335
4,528,876
6,779 417
1.168,5-38
2,912.068
537,908
0,725,603
71.1
83.
23.
139.
266/
133.8
130/
462.
126.
435.
84/9
Total in Southern States . . . . . . . . . . .
20,631
$95,974,585
86,643,152
98,583
12,138
28,681,195
155,531,281
79,161,859
96.47
California......................................... . . .
Oregon...................................................
Utah Territory.................. ...................
Washington Territory........................
New Mexico T erritory......
8,468
309
148
52
82
22,043.096
1,337,239
443,350
1,296,200
2,008,350
87,051,674
1,431,952
439,512
602,021
867,892
49,169
968
380
866
1,044
57
10
9
4
30
28,402,287
635, -.50
231,701
453,601
341,306
68,253.228
3,976 761
900,153
1,406,921
1,249,123
12,862,522
2,236,640
291,220
430,
33.
204.9
249,010
405,
Total in Pacific States & Ter’ies..
9,059
37,128,240
29,793,051
52,427
110
30,064,151
74,786,186
15,639,392
378.
Aggregate in United States in 1860.
Aggregate in United States in 1850..
140,433
123,025
1,009,855,715
533,245,351
1,031.605,022
655,123,822
1,041,349
731,137
270.897
225,922
879,178,966
236,755,464
Increase.................................................
Increase per cent...................................
17,409
$476,610,364
89.5
*476,481,270
85.9
310,212
44,975
$142,423,502
$866,755,060'
85.9
Omitting the Southern or non-Manufacturing States the annual value of Manufactures per capita is $77 45*
85.5
62
80
24
09
43
98
01
88
55
61
20
17 08
179
56
22
121
13
90
73
35
35
35
129 42
$59 97
I860.
189
1,885,861.676 $1,019,106,616
1,019,106,616
S3
16
12
16
17
10
22
10
8
6
16
M a nufactures in U n ited S ta les,
5 .srs
8,689
1,230
1,890
185
1,459
1,744
983
976
518
2,572
3866.]
Virginia.
North Carolina......................................
South Carolina......................................
Georgia...................................................
Florida....................................................
Alabama................., , ............................
Louisiana............................... ...............
T exas.................. ..................................
Mississippi......... .............. , ...................
Arkansa*s ...................................
Tennessee............... ..............................
Federal, Stalet and Municipal Finances.
14&
[February,
FEDERAL, STATE, AND MUNICIPAL FINANCES.
THE BAJIKS OF NEW YORK.—-ANNUAL REPORT OF THE SUPERINTENDENT OF
THE BANKING DEPARTMENT,
Mr. Keyes, Acting Superintendent of the Banking Department of this Stater
has submitted his report to the Legislature, from which we extract the follow-,
ings
B an k D epaetsten *,
A
lb a n y ,
f
December 23, 1865.
1
To the honorable the Legislature o f the State o f Sew York :
The passage of the act of March 9, 1865, commonly known as the enabling act,precipitated what, under existing conditions, could not long be delayed,-the fourth, and,,
to appearance, the concluding era in the history of State banking in New York.
Since its passage one hundred and seventy-three banks have closed business as
State institutions, and been received into the national fold, and though some of these
had already taken steps in that direction, the passage of the act greatly facilitated
their transfer. Besides these twenty banks had received authority, and were doing
business under the national system prior to the passage of the act, and of these, tenhad effected the change prior to October 1, 1864. The last fiscal year, therefore,
has witnessed the practical extinction of one hundred and eighty-three State banks,
with all their wealth and influence, to'the national guardianship.
*
*
*
*
*
*
*
*
*
Some time must necessarily elapse before We -shall see the end o f what is now the
beginning, as under the operation o f our present law it requires six years to close the
circulation account o f any bank, even afier, by the return o f seventy-five per cent of
its circulation, it is authorized to withdraw its bonded securities-, and make a deposit
o f cash for the redemption of the remainder of its notes. It is evident, therefore, that
the final closing of the affairs o f over three hundred banks, is a labor that cannot be
speedily accomplished.
To facilitate this, however, I wonld suggest an amendment o f section 1, chapter
236 of the laws of 1859, which requires the return of seventy-five per cent of the
circulation outstanding at the time o f giving notice of closing, before a cash deposit
can be made for the redemption of the balance and the statute o f limitations be set
in operation. The time at which the amount of outstanding circulation is computed
is purely arbitrary, and operates greatly to the disadvantage of banks that may have"
retired a large part of their circulation before giving the notice required.
A further
proviso, that the eish deposit might be made whenever the outstanding circulation
should be reduced to $10,000, would facilitate the closing o f a cumber of banks, and
be in no respect prejudicial to public interests. Or the result might be reached by
causing tile circulation, of which seventy-five per cent must be returned, to be eatimat d at the time of greatest issue, as ascertained from the quarterly statementsmade by the bank.
The sweeping cha acter o f the silent revolution which has been progressing in our
financial system, will be more fully disclosed by an examination of the general state
ment, pp. 3 and 4 of the appendix, and o f tables 7 and 11.
For more convenient relerei.ee, I condense from them the following brief sum
mary i
The capital invested in banking, under our State laws, on the 24th day of Septem
ber, 1864, was............................................................................... ..... ................................. $107,306,948
On the 30th day of September, 1865....................................................................................
20,436,970
Decrease during the fiscal year.................. , .................... .............................................
The greatest decrease in any previous year, during the last ten years................
The circulation returned and destroyed during the year ending September 30th,
1865, was.................................................................................................................................
$86,869,978
1,951,199
16,728,179
which exceeds by about $2,000,000 the amount returned during the panic year o4
1867. and by about $9,000,000 the averegeyearly amount for the last ten years.
141
Federal, State, and Municipal Finances.
The circulation issued and outstanding on the 30th September, 1864, was........
The circulation issued and outstanding on the 30th September, 1865., w as..................
$40,118,635
27,009,449
Decrease during the fiscal year..........................................................................................
$13,109,186
h e l d u n d e r g e n e r a l l a w s to r e d e e m 'C i r c u l a t i o n , Sept.
30, 1 8 6 4 . , , . . , . , . . , . , ...................... . . . ............................................ ........... ................... $37,303,524 05
^Securities held under general laws to redeem circulation, Sept. 30, 1865................ 25,469,157 44
S e c u r it ie s , in c lu d in g ca s h ,
Decrease during the fiscal year.................................................... ............. ..................$11,834,366 61
The decrease o f the different clasese of securities has been as follows :
•iOf United States stocks.......... ........... ....................................................... .........................$8,528,600 00
New York state stocks_______ . ............. ............ ............................................... ..... 2,225,706 00
Illinois state stocks.............................................................................................................
233,4ot 00
Bonds and mortgages.................................... ............. .......... ............ ..... .................... t 936,876 00
increase of cash deposits to redeem circulation.............. ................... ...........................
$11,924,582 00
9*-,216 39
Total decrease as stated above....................... ................................. .............. ........... $li,834,3t>0 61
IN C O R P O R A T E D
BANKS.
On the let of January, 1866, will expire the limited charters of the remaining
incorporated banks in this State. .Four of these have already commenced doing busi
ness under the auspices of the national system.
The hank of the Mannhattan Company and the bank of the NewYork Dry Dock
•Company, with unlimited charters, still survisve the decay of the system thatgave them
birth, and of the systems that have sprung into being since.
TiHE B A N K FU N D .
Contributions to this fund will cease after January 1, 1866, and the charges upon
it will be liquidated, so *far as presented, on the first-day of February following.
There will then remain an estimated balance .of about $86,4)00, for the application of
which there is no legal provision.
I ^uote from the last report e f Hon. H. H. Van Dyck his remarks upon this subject
as conveying the information necesaary for your intelligent action :
“ The fund thus accumulated was designed to secure the redemption of the notes of insol
vent safety fund banks. But the oyer-issue of several insolvent institutions, and the failure
o f others, exhausted the contributions on hand, and mortgaged those of the future to such an
extent that the fund ceased to be regarded as a means of redemption; and, consequently, the
outstanding issues of the Lewis County Bank, Yates County Bank, and Bank of Orleans, have
been left in the hands of the community, save so far as they .have been absorbed by the re
ceivers appointed to administer upon the effects of the defunct institutions. According 4o
the latest returns, there would seem to be still outstanding, or in the hands of the receivers,
$168,U43 of the notes of the aforesaid banks. As a considerable period has elapsed since their
rfailure, very little of this circulation is still in first hands, and much of it has probably been
destroyed ha view of its regarded worthlessness. Whether the fund -on hand shall be applied
to the redemption of notes, and if so, in what order, or what disposition is to be made of it
.eventually, should be indicated either by legislative or judicial action. An adjustment of the
question in some authoritative form seems in every way desirable.”
I most earnestly renew the concluding suggestion, that some appropriate dispos*
tion of the balance of the fund be authorized.
*
■
*
*
#
*
*
*
*
#
4
T A X A T IO N
O F N A T IO N A L BA N K S .
The object manifestly is, to make and to mark a distinction between the capital
•owned by the .corporation and the remoter, though still very nea-r interest ©f the share
holder in the business in which that capital is employed.
This interest, represe ted
by shar s, is, by act of Congress, declared to be property. This is what the share
holder owns; it is subject to his control; he can dispose of it at will; in short, it is
his property. The shareholder has no ownership whatever in the capital thatis in
vested in the business o f t-he corporation, more than a citizen of this State has in the
Erie Canal. He has an interest in the proper management and control of that capitall
.as the citizen has in the management of the canal..
But be has no property in that
-capital, he cannot touch a dollar of it in whatever form expressed. Upon dissolu
tion of the corporation he cannot claim a dividend in kind—he can get, after the de
mands of creditors are satisfied, only the proportion o f assets represented by his shares,
in lawful money. The stocks were not his; ,tbe real estate was not his.; the notes or
«other forms o f indebtedness were not his; the shares were his, and for them he will
142
Federal, State, and Municipal Finances.
[February.
now receive in exchange, lawful money, such as in the inception of the enterprisehe gave for them. The individual owning shares is thus clearly distinguished from
the corporation owning capital.
Under our system banking (as well as other) corporations are taxed upon their
capital, and the shares in the hands of owners are not taxed. To have conformed to
the provisions of the act of Congress, our State law should have been so amended as
to direct the taxation of the shares in State banks in the hands o f shareholders But
this was not done, and those shares remain to-day— what they have ever been—free
from taxation. Having provided for taxing the shares in national associations, how
6kalt we sav that this is not at a higher rate than is imposed upon the shares in State
batiks, when no tax whatever is imposed upon the latter ? Taxing the capital stock
o f State banks at the same rate with the shares in National banks will not relieve
us, for the corporation that owns the capital stock may lawfully claim exemption upon
so much as is invested in government stocks, while upon the shares in national associ
ations there is no exemption.
1 cannot regard the distinction between taxing the capital o f banks and taxing the
shares of stock in banks as one in form only.
Our whole asgument for taxing the
chares in national banks rests upon the substantial character of this distinction. But
if the distinction were of form only we should remember that where the sole authority
for a proceeding is a provision of statute, and this provision prescribes the form o f
the proceeding, the matter of form becomes of essential importance.
1 am aware that the highest judicial authority of our state has disregarded the
incompatibility between our state law and the law of Congress opon this question.
But lam far Irom sanguine that the United States court, by whom the question must
be finally adjudicated, will view the question so complacently.
In any event, it is so
easy to remove this question from the arena of discussion, in courts or elsewhere,
that I earnestly urge upon the legislature to amend the laws of this State relating to
the taxation of banks organised under its authority, in such manner that the same
shall be strictly and unquestionably conformable to the requirements of the act o f
Congress in the particular above mentioned.
*
°
*
E m esson W , K e t e s ,
Deputy and Acting Superintendent.
OHIO STATE DEBT.
The funded debt of Ohio shows a decrease of $1,085 258 80 during the four
years ending November 15, 1865. The amounts in 1861 and 1865 compare as
follows :
8
EOKEI N B E E T .
Loan of 1856, (interest ceased).......................................... .
Loan of 1860, 6 per cent.........................................................
Loan of 1865, 5 per cent.......................................................
Loan of 1870, 6 per ce n t............................................- .........
Loan of ls75, 6 per cent.......................................................
Loan of 1881, 6 per cent.......................................................
Loan of 1886, 6 per cent..............................................
Loan of 1868, 6 per cent.......................................................
$1,166 33
6,198,325 27
1.025.000 00
2,183,531 93
1.600.000 00
2,400,000 OO
379,866 00
562,268 56
1,009,500 00
2,183.531 93
1.600.000 OO
4,095,309 4T
2.400.000 00
379,866 00
$13^787,889 53
$12,230,475 96
Stock o f 1849, (interest ceased)...........................................................
$1,765 00
National Road Bonds, (interest ceased) ............................................
60 36
Loan of 1863, 6 per cent................................................................... .
275,385 00
Loan of 1845, 6 per cent.......................................................................
250 000 00
Loan of (Union) of 1866, 6 per cent (int’st ceased)...........................
300,204 32
Loan of (Union) of 1868, 6 per cent....................................................
281,969 13
Loan of (Union) of 1871, 6 per cent..............................................................................
$ 1,765 00
60 36
.................
....................
500 OO
27C,213 13
400,000 00
To-taHoreign debt
DOM ESTIC D E B T .
Total domestic d e b t.......................................... ............
$1,109,383 81
$681,538 49
Aggregate foreign and domestic debt........................................
$14,89.7,273 34
$12,912,014 45
These figures present a highly satisfactory condition of affairs. Not only has
the State furnished the means for its own defense during the late four years war,
and sustained its credit by the prompt payment of interest on its indebtedness*
1865.]
143
Federal, State, and Municipal Finances.
but it has actually redeemed nearly $ 2 ,0 0 0 ,0 0 0 o f the principal o f the public debt*
and the balance to credit o f the sinking fund at the end o f thelast fiscal year
was $ 3 2 8 ,6 1 1 1 1 , a sura nearly sufficient to pay all the interest that may accrue
during the current year, without the aid o f the actual income o f the fund.
DEBT OF THE STATE OF ILLINOIS.
The
P u b lic D e b t o f the State o f Illinois, on the 30th o f December, 1 8 6 5 ,
w as $ 9 ,9 8 2 ,9 6 1 4 9 , against $ 1 1 ,1 2 1 ,5 6 4 4 5 on the corresponding date in 1 8 6 4
— a decrease within a year o f $ 1 ,1 3 8 ,6 0 2
96.
T he following is a detailed statem ent o f the debt due on the 30th Decem ber.
1865 :
*11. and Mich, canal bonds,
dated 1837 and
1830, due after 1860, unregistered....$258,00000
ill. and Mich, canal bonds,
dared 1837 and
1830, due after 1860, registered.
525.00000
Ml. and Mich, canal bonds,
dated 1841 and
1830, due after 1870, unregistered....46,00000
El. and Mich, canal bonds,
dated 1841 and
1S30, due after 1870, registered.
60,00000
El. and Mich, canal bonds,
dated 1847 and
1830, due after I860, unregistered... 101,00000
El. and Mich, canal bonds, dated 1847 and 1830, due after 1860, registered.......
254,400 00
El. and Mich, canal bonds, £225 each, due after 1870, interest payable in New York
registered......................................................................................................
35,000 00
El. ana Mich, canal bonds, £225 each, due after 1870, interest payable in New York,
registered..................................................................................................
25,200 00
EL and Mich, canal bonds, £225 each, due after 1870, interest payable in London,
unregistered.........................................................................................
690,000 00
EL and Mich, canal bonds, £225 each, due after 1870, interest payable in London,
registered ......................................................................................................................
310,800 00
El. and Mich, canal bonds, £300 each, due after 1870, interest payable in London,
unregistered.....................................................................................................................
60,000 00
El. and Mich, canal bonds, £300 each, due after 1870, interest payable in London,
registered..................................................................................... ....................................
430,200 00
El. and Mich, canal bonds, £100 each, due after 1870, interest payable in London,
unregistered...........................................................................................................
12,888 89
HI. and Mich canal bonds, £100 each, due after 1870, interest payable in London,
registered...........
108,790 99
El. and Mich, canal bonds refunded under act of 16 Fed., 1865, due after 1860 .........
22,000 00
Thornton loan bonds, due after 1879..................................................................................
176,000 00
Bank and Internal Improvement Bonds due after 1860..................................................
31,000 00
Internal Improvement Stock due after 1870......................................................................
42,000 00
Liquidation Bonds due after 1S65.....................................................................................
108,372 00
New Internal Improvement Stock du after 1870 ................
1,817,724 69
New Internal Improvement Interest Bonds due after 1877..........................................
1,136 676 97
Intere^ t Stock of 1857. due after 1860 ...............................................................................
689.198 95
Refunded Stock dated July 1,1859, due after 1860.........................................................
1,000 00
Refunded Stock dated July 1. 1850, due after 18‘>2..........................................................
436,000 00
Refunded Stock dated July 1,1859, due after 1865 ...........................................................
31.000 00
Refunded Stock d;ited July 1, 1850. due after I860.........................................................
107 000 00
Refunded Stock dated July 1, 1850, due after 1870 .........................................................
405,000 00
Refunded Stock dated July 1, 18 9, due after 1876 .........................................................
97,000 00
Refunded Stock dated July 1,1850, due after 1877............................
545.000 00
Refunded Sto k dated July, issued to Normal University after 1879..................
65,000 00
Illinois War Bonds dated July 1, 1861, due after 1879, $l,0u0 each.............................
621,000 00
Elinois War Bonds dated July 1, 1861, due after 1870, $500 each.................................
317,000 00
Elinois War Bonds dated July 1,1861, due after 1879, $100 each.....................
219,700 00
T otal.....................................................................................................................................
0,982,961 49
Same time in 1804 ..................................................... ......................................................... 11,121.564 45
Same time in 1862 ................................................................................................................. 12,222,388 22
MICHIGAN STATE DEBT.
The State Treasurer in his report to the Legislature makes the following exhibit of the State’s indebtedness:
Renewal Loan Bonds.................................
Two million Loan Bonds.....................................
do
do
...........................................................
do
do
...........................................................
do
do
...........................................................
St. Marie Canal Bonds..............................................................
War Loan Bonds.......................................................................
War Bounty Loan Bonds..........................................................
Total funded debt.
Interest. Due
6
Jan 1, 1878
7
do 1868
6
do 1873
6
do 1876
6
do 1883
6
do 1873
7
do 1886
7
May1,1890
Amount.
$216,000 00
250,000 00
'50.»,< 00 00
500,000 00
750,000 00
100,000 00
1,122,000 00
345,000 00
$3,783,000 00
144
Federal, Stale, and Municipal Finances.
Adjusted bonds, past due . . . ................................................................
Full paid $5,000,000 loan bonds, past d u e............................................
War loan bonds ($100 ana $50) called in...............................................
Unrecognized $5,000,000 loan bonds, $140,000 adjustable for.............
[February,
$4,000 00
12,000 00
400 00
80,999 80
Total funded and fundable debt...............................................................................
97,399 80
$3,880,399 80
TRU ST PUND DEBT.
Primary school fund................................................................................
University fund........................................................................................
Normal school fund. ..............................................................................
Railroad deposits.....................................................................................
$1,144,239 50
264,871 47
39,204 23
2,157
32
Total liabilities of State.............................................................................................
1,450,47252
$5,330,872 32
PUBLIC DEBT OF MASSACHUSETTS.
The following, taken from a special circular issued by Dupee, Beck & Sayles,
of Boston, gives a complete exhibit of the public debt and railroad loans of the
State of Massachusetts, as it existed on the 30th of November, 1865 :
Principal /-Interest--------- ■>
payable. Rate.
Payable.
June & Dec.
6
1868
April & Oct.
6
18 .8
June & Dec.
5
1LS68
6
Jan. & July.
1870
5
June & Doc.
1870
5
6
1870
Jan. & July.
6
5
April & Oct.
1873
1872
5
June & Dec.
1872
6
Jan. & July.
1872
6
April & Oct.
5
1861-2-4 ..............................................................
Jan. & July.
6
1854......................................................................
5
April & Oct.
1854...................................................................
1874
5
Jan. &■ July.
1861-2-4 ..............................................................
1874
6
1S61-2-4 ..............................................................
1875
6
1861-2-4 ..............................................................
1876
6
1857......................................................................
6
June & Dec.
1861-2-4 ..............................................................
6
Jan. & July.
1861-2-4 ..............................................................
6
1860-62................................................................. ........... 1880
5
May & Nov.
1863-64.................................................................____
6
1883
Jail. & July.
1863-4-53..............................................................
1894
5
May & Nov.
Date of Acts.
1856 ...................................................................
1857......................................................................
1861......................................................................
1861......................................................................
1861......................................................................
1859......................................................................
1861......................................................................
1861-2-4 ..............................................................
1852......................................................................
1861......................................................................
1861......................................................................
1861-2-4 ..............................................................
u
Total (principal and interest payable in gold)...................
Deposit Loan, Acts 1S63. Resolves 1865___
Temporary loan from banks, Acts 1863.......
Temporary loan, Resolves 1865....................
Payable.
30 d. notice.
var.
6 to 12 mos.
Amount
outstand’g
$100,000
150,000
15,000
75,000
150,000
21,000
89,000
205,000
100,000
17,000
83,000
341,000
125,000
304,000
150,000
94.000
300,000
420,000
1,430,000
50,000
400,000
200,000
220,000
1,088,000
6,429,000
$12,556,000
Rate.
6
6
7 3-10
Amount.
2,594,736
274,400
2,880,758
Total (principal and interest payable at maturity in...........
6,749,8)4
Requisitions .....................................................
1,000
2,296,250
—
Total of all debt, except railroad loans....................................................................
Less sinking funds, Back Bay lands, railroad stock and cash, applicable to the
redemption of the public debt.......................................................................................
2,297,220
20,603,144
12,888,003
$7,715,141
Net debt.
LO AN S TO R A IL R O A D C O R PO R A TIO N S.
Amount
-InterestPrincipal
Payable.
outstand’g
Date of Acts.
payable. Rate.
£472,500
April & Oct.
Western R.R. Sterling Coupon Bonds, Acts 1838-39-41
186S
90,000
1S69
do
do
180,000
1870
do
do
157,400
do
1871
do
£899,900
1866.]
145
Federal, Stale, and Municiple Finances.
Troy & Greenfield R.R. Sterling Coupon Bonds, Acts
1864-59-60...........................................................................
do
do
do
......................................
do
do
do
......................................
1888
1889
1890
5
5
5
April & Oct.
Troy and Greenfield Coupon Bonds,Acts 1854-59-60
do
do
do
......................................
do
do
do
......................................
do
do
do
........................... ..........
1890
1891
1893
1894
5
5
5
5
April & Oct.
it
Eastern R. R. Coupon Bonds,
do
do
do
do
do
do
do
do
do
do
do
do
do
do
do
1866
1867
1868
1869
1870
1871
5
5
5
5
5
5
Jan. & July.
6
Jan. & July.
Acts 1857..................
...................................
...................................
...................................
...................................
................................... ..
Norwich and Worcester E. E ., Acts 1854-67.........
“
it
tt
tt
tt
£22,500
29,300
62,700
£114,500
$ 200,000
216,500
209.000
541.000
$1,166,500
75.000
75.000
75.000
75.000
75.000
50.000
$425,000
*00,000
FINANCES OF ST. PAUL, MINN.
The indebtedness of the city on the 1st October, 1865, was as follows, viz. :
geven per cent bonds....................................................................................
Twelve per cent b o n d s................................................................................
Bills papable at 10 and 12c per annum....................................................
$326,226 65
30,000 00
47,000 00
Making a total o f................................................................. ...................
$403,227 65
This amount with the outstanding scrip and orders, perhaps about 7,000,
which with about $10,000 the city will require to borrow to pay interest in New
York and expenses, up to January 1st, 1866, will make the entire indebtedness
of the city at that date, $420,227 65.
The assessed valuation of the city on the 1st October, 1865, was follows:
Real e sta te ...........................................................................................
Personal property........................................................................................
National bank stock....................................................................................
$2,950,000
1,435,000
900,000
Total............................... ..........................................................................
The city levy o f 18 mills on the above amount including National
bank stock stock, will yield about......................................................
Bess discount aad collection........................................... .. ............. ..
$5,285,000
Add revenue from wharfage $12,000; licenses $12,143; bridges
$7,000; city justices’ courts $4,500; and market and pound 2,000
$78,980
7,000
37,643
Total estimated revenue for 1865-66....................................................
The city expenses will be— mayor and alderman $3,800 ; police force
$7,800; city attorney, clerk and treasurer, each $1,000,13,000;
city comptroller, jailor, pound master and market master, each
$600, $2,400 ; city justices $ 4 5 0 ........................................... $18,450
Streets $1,500 ; fire department $1,000; prison $1,000; in
cidental $8,000; printing, Ac., $1,600.................................... 27,500
Interest and exchange on 7 per cent bonds............................... 23,977
“
“
on 12 per cent bonds and bills pay
able
9,240
$149,573
Balance to credit......................................................................................
I f the assessment of the National bank stock be sustained by the
courts, there will be an additional amount of.....................................
$30,406
Total balance to credit
$79,167
16,200
$46,608
146
Journal o f Insurance.
[February,
— which may be applied to cancel the bills payable.
then stand as follows ;
The city indebtedness will
Total indebtedness, Jan. 1, 1866...............................................................
Surplus revenue above expenses.............................................................
$420,227 66
80,406 77
National bank tax, if sustained........ . .....................................................
$389,821 88
16,200 00
$373,621 88
With a prospect o f an early completion of the railroads converging on the
city and the advance of real estate, the city’s credit can be easily sustained, and
the amount of borrowed money paid off next year.
THE CITY DEBT OF TORONTO.
The amount of the debenture debt in December 31, 1864, of Toronto, Canada,
was 32,383,584 99. The purposes for which this debt was contracted were :
Original amount
of debt afore
said purposes.
Purposes for which the
debt was contracted.
Esplanade contract............................
Railway stock....................................
Gaol buildings....................................
School buildings..................................
Opening streets..................................
Local improvements.........................
New drill shed ............................... ..
Erection of city public buildings.. . .
Construction o f sewers and macad
amizing streets and other general
improvements................................
JOURNAL
$767,896
600,000
159,900
64,950
87,820
33,572
4,000
111,000
65
00
00
00
00
00
00
00
Amount re
deemed to
Dec. 31,1864.
$77,370
170.293
170.293
30.589
30.589
80.589
30.589
30.589
98
34
34
00
00
00
00
00
Amount out
standing on the
1st Jan., 1865.
$699,516
429,706
159,900
24,370
87,820
83,572
4,080
111,000
67
66
00
00
00
00
00
00
1,107,436 28
264,916 62
482,519 66
$2,929,751 93
$543,169 94
$2,383,534 99
OF
INSURANCE.
INSURANCE LEGISLATION.
It is not remarkable that the measures adopted by the several State Legisla
tures for protecting insurance companies organized within their own States, should
give rise to an attempt to secure from Congress a general insurance law, super
seding all State legislation, and placing insurance upon an equal footing in all
parts of the United States.
The insurance interest in each State has sought to shield itself from the com
petition of companies in other States by procuring enactments imposing disabili
ties upon outside corporations. Such restrictions have materially retarded the
progress of the insurance interest, and have so far been injurious to the public
welfare. The aim of such measures is to establish a monopoly. The public good
requires that the people shall have freedom to insure with whatever companies
offer the most advantageous terms of insurance. If the companies in a given
State are unable to hold their own against the exercise of such freedom, it can
only be because they do not possess the proper requisites for transacting an in
surance business efficiently. Laws checking the competition of companies from
147
Journal o f Insurance.
other States, are, therefore, simply a premium upon inefficiency, and tend directly
to encourage and consolidate bad management.
The supposition that any State can have interests antagonistic with those of
other States is unsound in principle. It is to the interest of the citizens of every
State to have the cheapest and safest insurance that can be found ; and the true
protection that should be afforded by a legislature, is to see to it that insurance
companies from all parts of the country have unrestricted freedom to insure
within the limits of the State. That is the protection of the people ; restrictive
nsurance laws are the protection of a class of capitalists, as against the people.
Such legislation is unworthy the spirit of a great and free country. It is pre
cisely the same in principle with the petty prohibitions by which the commerce
of European nations has been dwarfed, and international jealousies, pregnant with
hostilities, have been generated. If it be desirable to protect the insurance com.
panies of a State against those of neighboring States, it is equally so to impose
restrictions upon the manufactures and the labor of other States ; and thus the
principle, carried out to its legitimate bearings, would lead to a system of pro
hibitions which would compel the people to buy everything in the dearest market'
and to deprive them of every advantage enjoyed by other States.
This restrictive legislation overlooks the very important fact that that there
are certain States which possess peculiar facilities for the employment of capital
in insurance. In the East, for instance, there is always a larger amount of sur
plus capital than in the W est; the result of which is that the rate of interest is
lower, and insurance can therefore be afforded at lower rates. A t the point
where surplus money centers, there also we may expect to find the best financial
talent; so that insurance associations in such places are likely, as a rule, to be
better managed than elsewhere. The following statement showing the number,
assets, and risks of insurance companies at the chief points, taken from the census
of 1860, will illustrate how far this tendency regulates the distribution of insurance ca p ita l:
Number of
companies.
New Y ork..............................
Massachusetts....................
Connecticut.............................
Rhode Island.............................
Philadelphia............................
New Orleans...........................
.................
Augusta, G a ...........................
Jersey C ity ............................
Peoria, 111................................
Total................................
Capital and
assets.
$63,287,547
6,358,190
5,354,686
2,419,688
6,510,601
6,738,031
2
952,858
179,713
363,995
At risk.
$916,474,956
460,896,253
279,322,184
82,187,104
189,229,374
221.100,000
47,291,000
7,000,000
5,231,061
6,806,377
$2,105,538,319
Thus it appears that, in 1860, New York, Massachusetts, and Connecticut
covered more than three-quarters tbe insurance risks of the country. Tins is not
a mere accident; it arises from the fact, evidenced in the above figures, that the
companies of those States afford a broader basis of security. In New York, the
capital and assets are over 5f per cent of the amount at risk ; in Massachusetts
nearly l i per cent; in Connecticut about 2 per cent; in Philadelphia 4 f per
cent; and in New Orleans 3 per cent. With this great advantage as to secu-
148
Journal o f Insurance.
[February,
rity, in behalf of eastern companies, it is not surprising that they should com
mand preference. What State can legislate for the exclusion of the insurance
agencies of these States; without driving its citizens to insure where there is less
security for covering their risks? And, on the other hand, what conceivable
motive can the legislators of the Eastern States have for resorting to petty ex
clusive legislation upon this question ?
But while it is a grave economic error to repress the free operation of insurance
by State legislation, it would be a still worse policy to seek relief from these
vexatious obstructions by placing the whole insurance interest of the United
States under Congressional regulation—a course which is at present being ac
tively agitated by a portion of the insurance associations. This movement is a
fresh illustration of the prevailing mania for surrendering individual control into
the hands of the general government. Fortunately for the liberties of the people,
the Constitution confers upon Congress no authority to assume conti ol over such
affairs ; and even were it otherwise, the chances are that the uniformity of regu
lations under which the insurance interest of the country would be placed would
prove simply an uniformity of embarrassments. I f insurance must be fettered
let the bonds be imposed by the weaker power, and not by the powerful central
government; and, as a remedy for the evils we have discussed, let every State
repeal every restriction it has imposed upon the operations of insurance com
panies organized in other States.
IJISURA 1VCE AGAINST ACCIDENTS,
One of the most popular systems of indemnity ever put into execution and
use, and one which has grown universal in a very short space of time, is
the insurance against the accidents to which human beings are liable;
Nothing can be more beneficial to the regular traveler, to the tourist in
search of health, pleasure, or the wonders of our country, to any one, in
fact, who moves to any extent from place to place. None can tell bow soon
a misplaced switch, an open drawbridge, or the decayed timbers of a
bridge may derange a train’s operations, and cause loss of limb, and even of
life to the passengers thereon.
We read daily, and have for years read of these accidents, but until quite re
cently there has been no security as far as indemnity for such accidents is con
cerned, in the shape of a policy of insurance. Hitherto, a railroad company
was the only responsible party, and then only so far as carelessness or misman
agement upon its part went. Occasionally by bringing the matter in a court of
justice, after long and expensive lawsuit, parties were finally recompenced for
their losses.
When this occurred it had to be plainly shown that the railroad company was
the party which had committed the mismanagement. Those persons who were
bo unfortunate as to fall off a platform while standing thereon in direct viola
tion of the company’s orders and notices to that effect, had to suffer themselves,
and nothing securing to their friends an annuity was dreamed of. A man who
who happened to lose an arm while leaning from the open window of a railroad
car, the same way.
1866.]
Mines and Mining Statistics.
149
Now, however, it is quite different. Companies are springing up all around
for insuring against such accidents as we have spoken of. Parties now who
travel take as naturally to an accident policy as a horse to cats. Railroad com
panies, even themselves, have gone so far as to allow an insurance company to
assume the risks to assume the risks to whicg they were formerly liable.
It has, indeed, become a legitimate system of insurance, and is no more, where
it has been introduced, looked upon either as a novelty or an experiment.
We look upon Accidental Insurance as a necessity, and Accidental Insurance
Companies (sound ones) as a blessing, and the development of the progressive
spirit of the age in which we live.
MINES AND MINING STATISTICS.
LAKE SUPERIOR MINING.
T he copper of Lake Superior is native, i. e , it is the pure metal and not an
ore-—mixed but not alloyed with other substances. There are but two or three
ore mines in the Upper Peninsula, and none of them are as yet of comparative
importance. The copper is found in different strata of rock, both on the surface
and at various depths in the earth. It is deposited in immense masses, in small
nuggets, and in grains diffused throughout the rock. The geological laws gov
erning these deposits are complex, and far from being fully ascertained. The
belts of rock, in which the mineral is found, are called lodes or veins, these terms
being generally used indiscriminately, although there is some slight technical
distinction in their meaning. The surface indications of the existence of copper
are not very marked and furnish no reliable evidence as to the richness or extent
of the underlying deposits. When its copper-bearing rocks are parallel with
the adjacent strata, they are said to run with the formation, but when they strike
them at an angle they are said to run across the formation, and are called fissure
veins.
A high and precipitous bluff, if the indications justify it, is selected for the
location of a mine, as greatly facilitating the operations on the surface, and
affording important advantages for ascertaining the extent and value of the
mineral deposits. A gang of men commence at the top of the bluff, mining
downward, digging a pit generally seven by twelve feet in dimensions. This is
called a “ shaft,” and the work of excavation is termed “ sinking.” A shaft is
either perpendicular, or else “ sunk upon the vein,” that is, in the strata of cop.
per-bearing rock when that has been reached, before taking its dip ” or slant.
Every mine possesses at least two shafts, and usually more. A t a certain depth
from the surface, generally about 10 fathoms, a tunnel, seven by five feet in
dimensions, is started horizontally, running along the vein and connecting with
the other shafts. This is called a “ level,” and the work of excavation in this
case is termed “ driving." The shafts are Borne hundreds of feet apart, and when
thus connected, a strong current of air blows through the mine, giving it
thorough ventilation. The work continues still deeper. The shafts are sunk
10 fathoms more, and connected by another level, and so on ad libitum, and in
the mining vernacular these successive galleries are spoken of as the “ ten-fathom
150
Mints and Mining Statistics.
[February,
level, twenty-fathom level, thirty-fathom level, etc.” From the foot of the bluff
also, work is generally commenced, and an opening is “ driven ” horizontally
into the rock, connecting with one of the first levels. This is styled an “ adit,”
used for purposes of drainage and ventilation, and often as a means of entrance
and egress. The shafts, levels and adits constitute the mere skeleton of a mine,
and this preliminary work, which requires months of labor and immense outlayi
is called “ opening the mine,” and not until it is completed can the production
of mineral in any considerable quantities be attempted. The shafts are provid
ed with a series of narrow ladders, each from 30 to 40 feet in length, which are
securely partitioned off and firmly fastened, and by which the miners ascend and
descend. The shafts are also provided with massive hoisting apparatus, a large
bucket being used in case the descent is perpendicular, but a tramway and a car
known as a “ skip,” if it is inclined. Tramways are all placed in the levels to
transport the rock to the shafts, and provided with small cars. A large pump
is carried to the lowest depth of the mine and kept continually in motion, and
in occasional cases artificial ventilation is furnished in remote portions by means
of air tubes, connected with a fanning machine on the surface.
When the mine has been thus opened and the necessary machinery provided,
parties of miners commence to “ stope,” that is, to remove by blasting the rock
which either surrounds or contains the mineral. “ Stoping” is therefore the
main business of the mine, to the wants of which all the other operations are
subservient. “ Stoping” parties, with one of the levels or shafts as their base,
take out all the “ vein matter,” as the copper-bearing rock is termed, leaving
here and there natural pillars to sustain the ponderous roof, whose weight no
timbers, however massive, could support. The copper is often found in enor
mous masses, and then it is handled with great difficulty. It cannot be drilled,
and it is too tenacious to be blasted. The rock is therefore removed from its
surface as much as possible, and holes are drilled below it. Immense sand
blasts, consisting of many kegs of powder, are placed underneath, and by sev
eral of these it is torn from its stony fastenings. In the Minnesota Mine, a mass
of copper was found which weighed 450 tons, and in one of the sand blasts,
which were placed under it, 33 kegs of powder were used. A t the same mine, a
mass of copper of about five tons, found some 18 feet beneath the surface, was
thrown by one of these large blasts through the over-laying earth high in the air,
and fell many feet off in a deep ravine. When these masses are too heavy for
handling, or too large for transportation through the narrow levels, they are
cut up with cold chisels, a tedious but the only efficacious process. The copper
is also obtained in small pieces of a few pounds, and this is called “ barrel
work.” Mass and barrel copper are generally freed from all the rock possible
with the pick and hammer, and thus shipped for smelting. The third variety
of the mineral is found in small grains scattered through the rock, and this is
crushed in the stamp mills, freed from the rock by washing, and shipped under
the name of “ stamp work.”
Considerable native silver is found mixed with
the copper, but most of this is abstracted by the miners, and never reaches the
company. The Cliff Mine, however, obtained $1,800 worth of silver from their
stamp work last year. Openings, similar to the shaft, are frequently made for
various purposes from one level to another, or from a level to the surface ; thes e
1866.]
M in ts
and M in in g S tatistics.
151
are called “ winzes.” Often, also, a species of “ level” is started at right angles
with the general openings of the mines, i. e. running across instead of with the
formation of the copper-bearing rocks ; this is termed “ cross-cutting,” and is
generally used for “ prospecting,” or determining the character and value of the
adjacent strata.
This account would not be complete without some brief allusion to the enor
mous amount of surface improvement, which is as necessary to the successful
prosecution of mining operations as the underground labor. The ground has
to be cleared, and houses erected for the accommodation of the officers and em
ployees of the company. Miles of road are made to connect the mine with the
nearest port, both to secure supplies and also a market for the copper. Pon
derous and expensive machinery must be imported, and stamp-mills machineshops, forges, kilns, sheds, barns and offices constructed. A large dam must be
built to secure a constant supply of water to wash the stamp rock. An enor
mous quantity of fuel must be supplied. Few people realize the tremendous
consumption of wood resulted from this cause. The demands of a large mine
will clear more than 200 acres of woodland in a twelvemonth. Of course many
teams and laborers are required in this department of the business alone. Stores,
capable of filling the wants of the new settlement, must also be started and
maintained, and all the chief mines possess their own school house and church.
All this must be created from nothing, and in the midst of a barren wilderness.
It is only when these things are seen, that the beholder commences to realize
the enormous capital required for mining operations. The prevalent ideas on
the subject are ridiculously absurd, and only those who have personal knowledge
can form just conceptions concerning the matter. Every mine necessitates a
village upon the surface, as well as vast underground avenues, and when it is
stated that there are nearly one hundred mines on the Lake, the mind begins to
comprehend the immensity of the copper interest of this section.
WEALTH OF VIRGI1SIA.
T hf. State geologist, Dr. Grant, has recently returned from a tour of this
State, and is more than ever impressed with the vastness and variety of the ma
terial resources of Virginia. He appears to be surprised into an unusual degree
of admiration at the wonders he has witnessed. Although Virginians have loDg
heard vague accounts of the vast wealth in mines and minerals concealed in the
bowels of the earth, and are prepared to expect’ gratifying disclosures, they will
scarcely be prepared for the wonderful results exhibited in Dr. Grant’s recent
explorations. Virginia energy has been chiefly directed to agriculture. Few
of our citizens have sought to explore the hidden wealth and wonders of her
soil. But little has been known in regard to these, and that little has been re
vealed more by accident or casual and superficial examination than by continued
and well-directed scientific exploration. Dr. Grant’s professional ardor and per
sonal energy are in keeping with his high attainments. The State will be much
indebted to him for making her vast resources known to herself and to the
world.
Dr. Grant travelled about twenty-five hundred miles over the State, visiting
152
Com m ercial and In d u stria l Statistics.
[February,
nearly every county, and carefully examining and exploring each. He says that
Virginia possesses every metal and mineral that all the other States possess, and
any specific one in as great abundance and of equal quality with an other single
State.
Of the metals examined by him maybe enumerated gold, silver, iron, lead, tin,
zinc, platinum, molybdenum, tellurium, cobal, nickel, bismuth, antimony, arsenic,
plumbago, etc.
Of the minerals, coal, marble, kaolin (porcelain clay), potter’s clay, fire clay,
fuller’s earth, hydraulic cement, asbestos, soapstone, slate, red and yellow ochre,
mineral paints, manganese, gypsum, salt, marl, white sand, numerous mineral
springs, etc.
Dr. Grant has visited over one hundred gold mines, forty silver mines, twentyfive consecutive mines of copper, lead and zinc, three tin mines, one platinum, two
of molydenum, one of tellurium, one of cobalt, one of nickel, one of bismuth, one
of antimony, four of arsenic, and twenty of plumbago.
There are about two hundred square miles of coal lands in the Shenandoah Val
ley, one hundred square miles in Chesterfield County, twenty square miles in the
Farmville fields, and two hundred and fifty square miles in Botetourt, Montgom
ery, and other counties of Southwestern Virginia.
Of the valuable ores he says : The gold ores of Virginia are more brittle,
more easily crushed, and by analysis equally valuable with those of Colorado, and
cover fully as great an area.
Silver is found both in simple ore, in argentiferous galena, and with native
copper.
There are lead mines in Southwestern Virginia as rich as any in America.
They supplied the whole South during the war, and show no signs of exhaustion.
The ores are compact blue sulphuret, and are frequently found in solid veins
six feet wide.
The coppers are carbonate and sulphuret. Masses of native copper have
been found in this State of great size. The mines extend through at least
eight counties.
The iron ores are red and brown hematite, ferruginous ochre, specular, mag
netic, spathic, black band, sulphuret.
The coals found are adapted to the furnace.
COMMERCIAL AND INDUSTRIAL STATISTICS.
CROPS, LIVE STOCK AND FARMS—ANNUAL REPORT OF THE COMMISSIONER
OF AGRICULTURE,
The annual report of the Commissioner of Agriculture shows that, with the
exception of wheat, the yield of the crops during the past year has been very
large. The following tables exhibit the result:
153
Uortometcicll and Industrial S
1 8 6 6 .]
AMOUNT OF CROPS.
Indian corn* * *.
Wheat*.............
R y e .............
'Oats...................
Barley...............
Buckwheat. . . .
Potatoes . . . . . .
186a,
897,839,212
173,677,928
19.989,335
170,129.864
12,158,195
15,7 86,122
88,965,198
J66K
630,451,403
161),695,823
10,872,975
175,990,194
I t ,716,828
18,700,540
96,532,029
Total..........
Tobacco..............
H ay............
888,846,554
163,353,082
18,316,730
1;012,969,292
197,460,229
18,116,681
Decrease,
Increase.
132,612,191
12,982,165
116,360
5,860,330
\ \ • k• . • •k
........ .
1,442,567
2,914,418
2,433,169
16,974,201
141,386,939
84,107,147
230,039
AVERAGE OF CROPS.
Indian corn* * . .
W h ea t............... SkVkil
R y e ............. . .
Oats...................
B arley........ ......
Buckwheat . . . .
Potatoes*...........
Tobacco.......... ..
H a y ...................
T ota l. . . . .
15,312,441
18,098,936
1,489,607
6,686,174
557,299
1,054,060
1,120,804
216,423
15,641,604
17,438,752
13,158.089
1,410,983
6.481,750
640,317
1,051,700
902,295
289,826
15,034,564
2,126,311
9,163
65,136,248
56,238,276
2,203,867
28,624
224,424
16 932
2,360
227,509
23,403
606,940
1,106,839
VALUE OF CROFS.
Indian corn. . . . .
Wheat...............
E y e ........... . . . . .
Oats ...................
Barley..................
Buckwheat . . .
Potatoes.............
Tobacco...............
H ay.....................
T o ta l....................... ..................
$278,089,609
187,992,837
20,589,015
105,990,905
! 3,496,378
12,660,469
65,024,650
24,239,609
247,680,855
$637,718,183
294,315,119
31,975,013
139,381,247
16,941,023
77,184,043
29,335,225
865,707,074
$249,628,574
96,822,282
1 1,385,998
33,890,342
8,444,650
9,326,294
22,159,393
5,095,616
118,026,219
$955,764,322
$1,504,543,690
$548,779,368
21,986,763
The above tables do not show the exact comparative differences between the
years 1863 and 18S4, because the latter year embraces the crops of Kentucky,
Which are not in the year of 1863 Deducting from 1864, the comparison will
be as follows:
1863
TABLE OF COMPARISON BETWEEN
1863.
1864.
AND
1864.
Increase.
Bushels...................................... 888,546,554
959,821,150
71,274,596
Tobacco, lbs.-........................
163,353,082
140,503,760
.............
Hay. tons.......... ..
18,346,730
18,004,366
.............
Average..................................... 55,136,248
53,950,797
, ...........
Value of crops.......................... $956,764,322 $1,440,415,435 $484,655,113
Decrease.
...........
22,849,322
342,861
1,185,451
The table of comparison between 1863 and 1864 exhibits much that is impor
tant.. The increase in the bushels of grain is large and the decrease in the pounds
■of tobacco raised is also great. The decrease in acres cultivated 18 1,185,451,
but the increase in the value of the above crops is $484,651,113.
The first increase is from the corn crop, and the last may be attributed to
an increase in the currency, or a spirit of speculation.
V-Oi. M V.----UO. II,
10
154
[*FeBruar
Com m ercial a n d In d u stria l Statistics.
U S N IR A l
S0MMART
O r T B S AMOUNT OF TBK CROPS OF
1865,
COMPARED
W IT H
j
THOSE-
CF 1864 AND 1883.
1865.
1864.
1 8 63.
148,562,829
1-9,543,905
11,391,286
225,252,395
¥04,427,853'
18,331,019
101,03-2,095
160,69-5,823
19,872,975
10,632,178
176,690,064
530,581,403
18,700,540
99,256,888
179,464,030
20,732,782
11.368,155
173,800,575
451,96',969
15,806,455
100,158,670
Total' bushels-. ......... .................... f ,228,5 o l, 282
Hay, tons...................................
23,538,740
Tobacco, lbs.........................................
183,316,9-53
1,01-3,429,871
18,116,751
197,468,229
953,288,632
19,736,847
287,267,920
Wheat, bushels'................................
Bye, bushels.........................................
Barley, bushels.. , . . . . . . . . - . , . .
Oats, bushels....................................
Corn, bushels..................... ..............
Buckwheat, bushels.-...........................
Potatoes; bnshels...............................
lu the Western States the Wheat crop is very deficient in quality. It hasBeen estimated by the department that the deficiency in both quantity and qual
ity is 26.241,(>£)8 bushels; in quantity alone, 12,172,944 bushels. The quality c-f
the corn crop is excellent, and that of the remaining erops.is believed to be ao
average. The number of bushels in 186-5 exceeds those of 1864 by 215,7-10,411.bfVE ST0C&
The following table shows the total number of live stock for January, 1864
and 1865, the increase and decrease thereof, the general average price of eachkind,-the value of each kind, and the total value of all
T864.
Animkls.
Mules.
......
7965,439
. . . . . . 24,346.891
Bogs' ...............
1865
3,740,933
217,553
7,072,591
6,768,130
28,647,269
18;070,887
T o ta l................
58,547,363
N U M BER, A V E R A G E P R IC E , A N D TO TAL V A L U E
Animals.
H orses............................. •........ ..
M u les..................
Cattle and oxen
...........•............
Cows ...................................
S h e e p ...................................................
H o g s ....................
Number.
3,740,933
247,553
7,072,691
6,768,180
28,647,269
13,070,887
Total v a lu e ................................. .......................... ..
©ecr.
808,209’
33,294?
892,848
298,618
Incr.
4,300,8783,077,825
4,300,878 4,610,704
IN J A N U A R Y ,
Av.-price.
$80 S4
102 08
26 17
36 70
5 40
8 55
1865.
Total value*
$302,425,499
25,041,488
185,090,087
211,718,270
154,807,466
111,796,318
$990,879,123
THE SOUTH.
The Commissioner gives the following account of the farms in the Southern
S
t
a
t
e
s
_________
The average size of farms in the United States, in 1860, was 199 acres; almos®
double the average for Great Britain, which, in 1851, was 102 acres only, notwith
standing the great size of many baronial and aristocratic “ holdings”— there being
po les than 170,814 farms in the kingdom, or considerably more than one-half o f the
entire number, having less than 50 acres each. But the average in the Southern States
is for greater than the general average for the United States, as the following, tabla
will show.
1 8 6 6 .]
Commercial and Industrial Statistics.
D elaw are,...........
Maryland............
Virginia .............
North Carolina ...
South Carolina . .
G eorgia..............
Florida................
Alabam a..............
Mississippi...........
Louisiana..............
Texas....................
Arkansas..............
Tennessee ...........
K entucky............
Missouri...............
Unimproved
lands.
867.230
1,038.304
19,679.215
17,245.685
11,623,859
18,587,732
2,264.015
12,718.821
10.773,929
6,591.468
22,693,247
7,690,393
13,873,828
11.519,053
13,737.939
Total..................
171,101,718
Improved
lands.
155
Number Av. No.
in each.
1o L
6,6oS
25,494
190
92,605
324
75,203
316
33,171
488
62,003
430
6,568
444
55,128
346
42,840
370
17,328
586
42,831
591
89,004
245
82.368
251
90,814
211
92,792
215
of farms.
761,867
320
The large proportion—almost three-fourths—of unimproved land in farms, in ad
dition to the unimproved public lands, illustrates pointedly the necessity that vastly
more labor be applied to their cultivation. The most populous states to the Union
have the smallest farms, commanding the highest price per acre; and the value
per acre is, as a general fact, inversely proportionate to the size of the farms. Thus
the farms of Massiahusetts average ninety-four acres; of Rhode Island, ninetysix; o f Connecticut, ninety-nine; o f New York, one hundred and six; of Penn
sylvania, one hundred and nine, and of Ohio, one hundred and fourteen.”
seeds .
.
In the distribution of seeds, 234,945 packages have been delivered to senators and
representatives in Congress, 119,ti92 to agricultural and horticultural societies, and
408,583 to regular and occasional correspondents, and in answer to personal ap
plications—making total of all varieties of seeds of 768,231 packages.
The distributions from the experimental and propagating garden during t’’ e past
year have been mainly confined to varieties of small fruits, such as grapes, straw
berries, gooseberries, raspberries and currants. Of these about thirty-live thousand
plants have been distributed through the usual channels.
PHOTOGRAPHIC DISCOVERIES.
W e lake the following account of the results of experiment, in photographs
from a contemporary, assured that they will interest as well as instruct our
readers.
NEGATIVES WITHOUT A NITRATE BATH.
The oft-repeated attempt to dispense with a nitrate of silver bath in producing
negatives has received attention during the year, and^renewed experiments have
been made with some degree of success. Our own attempts made years ago
were chiefly directed to getting rid of the nitrate baths in the wet process. We
have made some experiments in the same direction during the past year. Herr
Paul Liesgang lias done the same, and Messrs. Sayce and Holton have succes
sively experimented in producing dry plates by similar means. In their experi
ments they use a colodion containing five grains of pyroxytine, five grains of
bromide of cadmium, two one-half grains of bromide of ammodium, and nitrate
of silver eleven to twelve grains, by which bromide of silver in a finely suspended
state, which is formed in the colodion plates coated with this, immersed in water
until there is no appearance of greaseness, and then immersed five or ten minutes
156
[February,
Commercial and Industrial Statistics.
in a fifteen grain solntion of tannin, to which we added three grains each of
grape sugar and gallic acid, and dried. This gives good negatives after very
short exposure on the application of an alkaline developer.
COMBINATION OF THE SALTS OF SILVER AND LEAD IN PRINTING.
M. Grune has produced some positives with the double oxide of silver and
lead. His process rests upon Wohler’s discovery that if we precipitate a mixed
solution of a salt of lead aud a salt of silver by potassa, a yellow precipitate is
formed, which is a true alloy of the oxide of the two metals. This alloy, consi.-t ng of sixty-six parts of oxide of lead and thirty-four parts of the oxide of
silver, is sensitive to the action of light. It is said that the paper to which it
is applied is printed as rapidly as paper coated with chloride of silver, yields
the most delicate half tones, and the fixing and toning are effected in the ordi
nary manner. Ordinary paper is placed on a batb composed of
Nitrate of lead ........................... ............................
Nitrate of silver..........................................................................
W a te r ..........................................................................................
2^ parts.
1
20
“
“
When dried the paper is floated a second time upon a bath composed of one
part of potassa dissolved in thirty parts of water. The paper now becomes yel
low br"wn, it is dried aud then exposed. Under the lumiuous action the lights
become brownish, but they returu to a pure white under the action of the hyposnlphate of soda. The process tones in the gold bath exactly like those upon
albuminzed paper.
NEW METHOD OF PHOTOGRAPHIC PRINTING.
Mr. Thomas Fox has patented a process of pringiug without nitrate of silver,
which he states produces p ctures of an intense black, equal if not blacker than
any known process, aud which will not lade from ordinary exposure. Sensitize
the paper with a solution of bichromate of potass and sulphate of copper, mixed
in the proportions of one part of the former to two of the latter, and either
float or steep the paper for a few minutes, then dry in the dark by a fire, (this
paper will retain sensitiveness for some days if carefully preserved from the
•light) then print from a glass transparency or a paper print. The time of ex
posure is much the same as in printing with nitrate of silver; in sunshine from
one to three minutes is amply sufficient for glass. Prepare a strong decoction
Df logwood, and filter such a quantity as will float the print, add a little hot
water to hasten the development, float the sensitized picture from half a minute
to a minute, print side down, and then holding it by one corner gradually raise
it from the logwood—a perfect delineated copy is the result. Next dip it into
hot or cold water and varnish. This gives a very distinct picture, with the
■shades of a deep black, and the lights of a rather greyish yellow tint. In
order to obtain a white ground, I use a weak solution of alum, put in hot
water.
RECOVERY OF SILVER FROM WASTE SOLUTIONS.
It is stated t at out of every one hundred ounces of silver used by a photo
grapher, that niuety-three ounces may be recovered, which would be and is to a
great extent in this country lost. It is but lately that they even saved the clip-
1866.]
Commercial and Industrial Statistics.
157
pings of the prints and would not have done so then, but they found that there
were men traveling around, who were wishing to buy them. A plate of copper
left in the solution of nitrate of silver which constitute* the washings precipi
tates the whole of the silver in the state of metallic sponge in four and twenty
hours. A plate of zinc acts in the same manner.
A plate of copper left in the solution of hyposulphate soda, which constitutes
the fixing bath precipitates the silver in the form of a coherent powder often
even in a continuous plate but with less rapidity. Two days' contact are neces
sary at least, and four days are better, but at the end of this time the action
may be considered as terminated, prolonging it will be neither injurious or ad
vantageous, if the precipitate be longer in presence of hyposulphate of soda.
It is not moreover so complete. The quantity of silver lost by discarding the
hyposolution as is mostly done, is about 37 per cent.
We perceive from every point of view that there is an advantage in treating
separately the washing waters before toning and the fixing solution. To this
end the photographer must have either within or without the operating room,
two earthen vessels of such dimensions that one may contain the washing water
of two days, the other the fixing solutions and their first washing of four or six
days. In each of these pots a number of plates of copper placed on two large
plates placed opposite to each other answer the purpose very well. No sus
pension or particular precaution is necessary. The sheets of copper may simply
rest against the sides of the vessel. In the course of his working the photo
grapher will throw the washings into the first pot and allow them to remain
tweDty-f'our or forty eight hours as required. Into the second pot he will throw
the fixing bath and their first washings, taking care to leave them for at least a
couple of days to settle.
THE MONSTER BELLS OF THE WORLD.
In making large bells, loudness rather than pitch is the object, as the sound
can be conveyed to a much further extent. This accounts for the enormous
weight of some of the largest bells. St. Paul’s for instance weighs 13.000
pounds ; the bell of Antwerp, 16,000 pounds ; Oxford, 17 000 pounds ; the b 11
at Rome, 19,000 pounds; Mechlin, 20,000 pounds; Bruges, 23 000; York?
24.000 pounds; Cologne, 25,000 pounds; Montreal, 29,000 pounds, Erfurt,
30.000 pounds ; “ Big Ben,” at the House of Parliament 31,000 pounds ; Sens,
34.000 pounds; Vienna, 40,000 pounds; Novgorod, 69.000 pounds; Pekin,
139.000 pounds ; Moscow, 141,000 pounds. But, as yet, the greatest bell ever
known is another famous Moscow beM, which was never hung. It was cast by
the order of the Empress Anne, in 1653. It lies broken on the ground, and is
estimated to weigh 443,772 pounds. It is nineteen feet high and measures
around the margin, sixty-four feet. No wonder that it has never been sus
pended.
There are few bells of interest in the United States. The heaviest is prob-,
ably the alarm bell on the City Hall in New York, weighing about 23 0(JO
pounds.
As the Russians make their pilgrimage to the great Moscow bell, and regard
158
Commercial and Industrial Statistics.
it with superstitious veneration, so the American citizen
the old Independence bell at Philadelphia, for he is not
glory of the R solution, but he believes, now more thau
tion has been obeyed, its inscription—“ Proclaim liberty
unto all the inhabitants thereof.^’
[February,
honors and venerates
only reminded of the
ever, since the injunc
throughout the land,
SALARATUS BY THE ACRE.
Fitz-Hugh Ludlow, in his overland trip to California, found between Utah
and the Humboldt mountains a large desert composed, as he says, of “ sand of
snowy alkali ” He describes it as one of the most dismal and forbidding spots
that was ever traversed by the foot of man ; but, in view of the extension
through it of the Atlantic and Pacific railroad, he suggests an interesting pos
sibility as to its future use. He says : “ In its crudest state the alkaline earth
of the desert is sufficiently pure to make violent effervescence with acids. No
elaborate process is required to turn it into commercial soda and potash. Coal
has tJready been foui.d in Utah. Silex exists abundantly in all the desert uplifts.
Why should not the greatest glass-works in the world be reared along the desert
section of the Pacific road ? and why should not the entire market of the Pacific
coast be supplied with refined alkalies from the same tract?
WORSTED GOODS.
The manufacture of worsted goods, consisting of all wool and cotton warp,
mouseliue delaine, bareges, cashmeres, etc., for ladies’ dresses, is mainly carried
on in three establishments, in the United States. These are the Manchester
Print works in New Hampshire, the Pacific Mills at Lawrence, and the Hamil
ton Woolen Company’s Works at Southbridge, Massachusetts. The product
of the aforesaid establishments in 1864 was 22,150,000 yards, the annual value
of the products $3,710 375, annual cost of labor $543,684, female bands em
ployed 1,277, male hands employed 101, sets of cards 110, cost of all raw mate
rial used. $2,442,775, pounds of cotton used, 1,653,000, pounds of wool, 3,000,000, capital invested, $3,230 000.
MANUFACTURES OF LOWELL.
Lowell’s 33 cotton mills employ 948 males and 1,650 females, and last year
produced $7,125,753 worth of fabrics; two calico and muslin delaine mills em
ployed la8 males and 11 females, and turned out $3,L67,122 worth of fabrics;
15 woolen mills employed 699 females and turned out $2,620,214 worth of fab
rics ; 5 carpet mills employed 382 males, 573 females, and turned out $3,570,453 worth of carpeting.
'Statistics o f Population.
a e s « .]
tUSt
STATISTICS OF POPULATION
POPIJLATI0.V, ETC,, OF MEXICO I S 1865,
T he following table and remarks upon the same are from a late number ef the
Mexican Times.
Departments.
Y ucatan...............
Cam peche............. . .............. .. . . . .
La Lagnus................... ..................
T obasco............................... ..........
(Chiapas..................... ................... .
Tehuantepec ...................................
•Oajaca............... . . . . . . . . . . . . . .
Ejutlan............................................
Teposcolula .................................. ..
Yera C r u s ....................... . . . . . . .
Tux pan .........................................
•Puebla ................... .......... . . . . . .
Tln xcala.........................................
Y alle de Mexico . . . . . . . . . . . . . .
T u h n cin go............. ................ ....
T u l a .............................................. ..
Toluca.......................................... ..
Itu rb id e______________________
<Queretoro.................... ................ ..
G uerrero..................... .......... . . ... •
A ca p u lco ........................................
Michoaean......................................
Tancitaro.......................................
Coalcoman....................................-Colima..................... ..
J a lis c o .......................................... ..
A u tla n ........ .... . . . . . . . . . . . . . .
N a y a rit........................... ..............
•Guanajuato....................................
Aguascal i eotee. . .
.
Zacatecns................................... .
Fresuiilo........................................
Potosi........................... ..................
Matehuala........................... .........
Tamaulipas...............................
Matamor.as.................. . . ...............
Nuevo Leon ................. ..
C oo h u ila ........................................
Alapimi.
Jlazatlan................................. ....
Sinalos............................................
D u ra n g o ........................................
Nazas........................................ ..
A la m os.. . . . ..................... ...........
S o n o r a ................. ........................
Arizona........................... ..
Huijuquilla................................. ..
Jiaiopilas ................... ..
Chihuahua....................................
(California............... .....................
T o t a l......... . . . . . . . . . . . .
eq. miles.
a0,0 b9
18,594
10,531
11,906
11,696
12,494
11,493
3,231
8,469
13,243
8,331
7,131
.6,137
2,562
6,4 37
8,856
6,844
6,-06
5,915
3 0,425
12,408
10,937
7463
6,200
7,068
7,826
,8,7 '1i
10.737
9,075
11,050
11,156
14,368
14.137
18,116
12,806
13,719
14,868
-24 975
28,34)0
13,1.25
38,100
21,213
18,306
16,605
26,212
■80,325
27,993
18,545
33.881
52,731
Population.
263,547
126,868
47,000
99,930
157,318
85,275
235,845
93,675
■160,720
265,1 59
97,940
467,788
839,571
481.,796
.266,678
178,174
811,853
157,618
273.515
424,836
97,949
417,873
179,100
96,450
.138,788
219,987
82,674
78,6 5
.601,850
433,151
102,823
82,860
808,116
88,427
71,460
49,034
162,645
63,178
6,777
94,387
82,>186
103,608
46,495
41/141
80,129
25,603
16/192
71,481
65,824
12,420
712,850
8,218,080
C&pitsls.
Merida.
Campeche.
El Carmen.
St Juan Bautiste.
San Cristobal.
Suehil
tOajaca.
Ejutlan.
Teposcolula^
Wera Cruz.
Tuxpan.
'Puebla.
Tlaxcala.
Mexico.
Tulanciugo.
Tula.
Toluca.
Tarco.
'Queretaro.
Chilpancingou
Acapulco.
Morelia.
Tancitaro.
Coalcomau.
Colima.
Guadalajara.
Autlao.
Acaponita.
Guanajuato.
Aguascalieiiteg.
Zacatecas.
Fresuiilo.
San Luis.
Matehuala.
Ciudad Victoria.
Matainoras.
Monterey.
Saltillo.
S. F. de Rosa*.
Mazatlan.
Sinalos.
Dur »ngo.
Indee.
Alamos.
XTres.
Altar.
Jimenez.
Hidal-o
Chihuahua.
La Paz'
ICO
Statistics o f Population.
[February,
The above statement is correct—it is official. The empire is divided into fifty
departments, with an area of 112.850 square miles, and a population of 8,218,080
souls. It is more than three times as large as France, four times as large as
Spain, and about thirty times the size of Holland and Belgium. It is in extent
and internal resources a first class empire.
No country on earth has as many natural advantages. Mexico is self sustain
ing in every way. She raises her own breads!tiffs of every kind ; her beef and
pork ; her coffee, sura? and chocolate ; her indigo, cochineal and vanilla, her
wool, thread and cordage, and is now producing a large quantity of her cotton.
She produces wines, aguardienta, meacal and pulque in the greatest abundance.
In the northern departments, bordering on the Rio Grande, there is a fine graz
ing region. Here are immense herds of horses, mules, cattle and sheep. The
middle portion of the empire is more devoted to agriculture—to corn, wheat
rye, barley, and oats. Here the Irish potato grows well. The Pacific and
Atlantic coasts are well adapted to sugar, coffee, tobacco and rice, and all the
tropical plants and fruits. In the extreme South, in Yucatan, Campeche,
Tehuantepec, Tabasco and La Laguna, is the country for dye woods, mahogany
and the very best cacao. Here also grows in very great perfection the cocoanut
and the ehirimoya and every other iater-tropicol fruit. The lovers of naturalhistory will find here in their native forests the noblest specimens of animated
nature.
Oajaca produces cochineal aDd indigo in large quantities, while the high lands
of Jalapa have monopolised for years the production of the celebrated “ purga
tive drug.”
The most valuable silver mines are situated in Tulancingo, Zacateeas, San
Luis Potosi, Guanajuato, Jalisco, Guerrero, Sonora, Sinaloa and Chihuahua.
The eopper mines of Chihuahua are said to be the richest in the world, ami thepearls of Lower California have ever been in great demand. The silver mines
of Real del Monte and Pachuda, in Tulancingo, are but a short distance from
this city. They are the most valuable in the country, and are now yielding
their owners large dividends. The mines of Guerrero are not only rich in silver
and gold, bat the streams abound in, precious stones.
The mint of Mexico has coined from 1800 to- 18G0, in silver, ^105 024,406.;
in gold, $26,115,544. How much of these precious metals was coined belore
1800, and how much was taken out of the country by Spanish viceroys, by refur
gte presidents and genera's, and by that system o f smuggling carried on so suc
cessfully for so many years, will never be made known.
This is a vast empire of mountains and valleys. The valleys are exceedingly
rich and productive, while the mountains are filled with hidden treasures. Twothirds of all the silver in circulation in the wide world has been taken from,
Mexico. If she k but true to herself—if her citizens will rise above the small
bickerings of party, and rally around our republican Emperor and support him
in his onward march of progress and improvement, this empire will soon be one
of the richest and happiest portions of “ God's green earth.” Mexico is richer
to-day than she ever was. New mines are daily discovered and worked with im
proved machinery. There are in her mountains ten thousand times more silver
and gold than have been taken ont. All she wants is energy—energy—energy.
1866.]
Mercantile Miscellanies.
161
CENSUS OF IOWA.
The census recently taken shows the total white population, as far as returns
have been made, to be '749,904, divided and classified as follows: Males 379,027;
females, 370,877 ; entitled to vote, 146,279 ; militia, 97,624 ; foreigners not nat
uralized, 10,594 ; between the ages of five and twenty-one years, 293,204 ; blind’
259 ; deaf and dumb, 271 ; insane, 612 ; colored males, 1,801; colored females,
1,798 ; total colored, 3,599. There are five counties in the northwestern part of
the State from which no report is yet received, which, at the last census, con
tained 170 inhabitants. Adding these to the total given above, we have 750,"
074. This is an increase in the last two years, in the white population, of 47,912;
entitled to vote, 11,229 : militia, 6,586 ; between the ages of five and twentyone years, 26,787 ; colored, 2,279.
MERCANTILE MISCELLANIES.
THE NATIONAL TREASURY.
T he following abstract of a letter from Washington describes the modus operandi at the National Treasury:
Everybody is familiar with the peculiar signature of General Spinner, the
United States Treasurer, on the notes constituting the National currency. I
propose in this article to give your readers a little insight into the
business of that department of the Treasury, over which he presides. The busi
ness of the Treasurer of the United States is transacted in six divisions or bu
reaus, as follows : The cash division, the bank division, the issue division, the
loan division, the redemption division, and the division of accounts. ,
The cash division is a gigantic bank. It has its cashier, its paying teller,
its receiving teller, its interest clerks, and its vault clerks. Into its yawning
vault is poured the entire revenue of the United States Government. The
receiving tellers receive all the revenue derived from the customs and import
duties, from internal revenue, and from the post-office. The paying teller pays
out money on drafts and checks on the Treasury, including all warrants drawn
by the Postmaster General, all checks drawn by disbursing officers, the salaries
of all persons in the diplomatic service, and all officers of the army and navy,
and all pensions.
The vault clerks receive all the money which comes into the hands of the
receiving tellers. They keep the money in solid square packages, about ten
inches square. I took two of these packages, one in eaoh hand. They were
both of the same size and weight, and presented the same outward appearance.
Yet one contained only $ 4 ,0 0 0 . The other contained the nice little sum of 4,000,000—enough to support a man comfortably during one’s lifetime, with the
exercise of economy.
The vast extent of the cash division may be realized from the fact that its
receipts during the last fiscal year amounted to over two thousand millions of
dollars, and its payments to even a larger sum.
The entire receipts of the cash division for the last six years have been five
162
Mercantile Miscellanies.
[February,
thousand millions of dollars; and the entire payments during the same time
have also amounted to five thousand millions of dollars. The receipts for 1860
were only twenty millions of dollars, and the payments only nineteen millions
seven hundred thousand dollars.
The business transacted in the redemption division is very curious and inter,
esting. It requires a corps of eighty-two clerks, sixty-three of whom are ladies,
and is transacted in fourteen distinct apartments. All the currency that has
served its purpose, and all mutilated United States notes, whether bearing in
terest or not, and all mutilated, torn or soiled fractional currency, is sent to this
division from all parts of the country, and is here redeemed, and the amount re
turned to the sender in good and new currency. Here we see why Mr. Clark’s
money mills must be kept constantly running, and why it is necessary for such a
vast volume of currency to be constantly made. Paper money lacks the dura
bility of specie; and as it wears out, it must be replaced with fresh issues, or
“•redeemed.” Hence the redemption division of the Treasury. The defaced,
mutilated and worn-out notes reach the redemption division in large packages.
They are sent in by banks, by railroad companies, by the cashiers of street cars,
and by private individuals. If a note has been into one hundred pieces, and
all the pieces be present, it will be redeemed at it its full value. The counting
of the contents of the packages is done by the lady clerks, who sit at tables with
the packages before them. These ladies are obliged to detect counterfeit notes,
as well as to count, and they do this while counting. They have acquired re
markable skill and dexterity in this respect, and some of them can detect a coun
terfeit note sooner than many men who consider themselves expert. From €80
to €100 in counterfeit notes are received here daily, and each note is at once
branded ‘‘ counterfeit” with a hot iron. Certificates of indebtedness Irom Na
tional Banks are received here, and are redeemed one year after date ol issue, by
checks on the Assistant Treasurers in New York, Boston and Philadelphia.
After the packages of notes have been counted and found correct, they are
cut in two by an instrument like a straw-cutter, worked by hand. One-half is
sent to the Secretary, the other half to the Eegister of the Treasury, by whom
they are again examined, counted and compared, as a final check on the redemp
tion division. They are finally burned.
The division of accounts is one of the most important in the Treasury. The
work is transacted by H. Lighton, chief of division, F. M. Meline, chief book
keeper, and twenty clerks. The accounts passed upon in this division, and sent
here for adjudication, embrace every item of the receipts, revenues and expendi
tures of the Government. All depositories and collectors of revenue, and all as.
sistant treasurers make stated and regular reports of their financial transactions
to this division. The accounts of all moneys transferred from one place to an
other ; from one United States depository to another ; from one assistant treasurer to another—are all sent to this division, and are properly entered, charged
and credited. All drafts upon the Treasury are issued here; and thus every dol
lar that passes into or out of the Treasury is accounted for in this room.
The bank division has charge of all the bonds and securities deposited with
the treasurer by the national banks
.j
a tes depositories. There
1865.]
Mercantile Miscellanies.
163
are 1,554 of these national banks now in existence. Before any national bank
can go into operation, it is required to deposit in this bank division a certain
amount of bonds and other securities for its circulation. The.-e securities are
kept in a large vault, which contains 1,600 compartments, in 1,554 of which are
deposited the bonds and securities sent in by the 1,554 national banks. No
one has access to this vault except the chief of the bank division, unless on spec
ial written order from the Secretary of the Treasury. Receipts of these bonds
and securities are sent by the bank division in duplicate, one to the Comptroller
of the Currency, and one to the bank depositing the bonds. The banks are then
furnished by the Controller of the Currency with what currency they need, the
amount being regulated by the amount of security deposited. A register of all
the bonds and securities deposited is of course kept. All the national banks
make reports twice a year, in January and July, to the division of the amount
of their capital stock, &c., and the substance of these reports is recorded in tab
ular form, in books kept in the bank division.
The loan division issues certificates of indebtedness on checks presented by
disbursing agents. These are only in two denominations—81.000 and $5,000.
Each certificate is numbered, and as each one is issued, a record of the fact, with
the number and the name of the person to whom/it is issued, is entered. These
certificates are payable one year after date of issue. For the week ending July
26, the certificates issued amount to $2,450,000.
The compound interest notes, the fractional currency, and all the United States
notes engraved and printed in the Treasury building are sent to the issue divisioa
of the Treasury, where they are counted, and then sent to the cash division.
The general supervision of all these six divisions rests upon Gen. Spinner, the
Treasurer of the United States, who nas held his present position since the be
ginning of President Lincoln’s administration.
THE CATTLE PLAGUE,
T he Cattle plague still occasions the deepest alarm in England although it
did not seem at last accounts, to be spreading very rapidly beyond the districts
where it began its ravages. To sum up the annals of this terrible and mysteri
ous scourge from various sources it would seem to have made its first appearance
in the British islands in the year 1745, the infection having been communicated
by a bundle of hides taken from the bodies of diseased cattle and shipped Irom
New Zealand where the sale and use had been prohibited. They were elandes.
tinely sold on their arrival and at once propagated a pestilence which spread
with amazing rapidity through every country on the known Globe Fur twelve
years it ravaged the flocks and herds of England, the Government having paid
scarcely any attention to its progress until the third year, when it was already
too late to arrest it without ordering all the infected cattle to be exterminated,
80,000 head were slaughtered but in reality 160,000 perished from the disease.
In the space of six months 40,000 perished in Nottinghamshire and 30,000 in
Cheshire, and the sum total of loss in Europe was estimated at 3,000,000 head.
In far earlier times, the malady had appeared on the Continent. In the
reign of Theodoric, it raged at the South and about the time of Charlemagne’s
164
Mercantile Miscellanies.
[February,
return from bis expedition against the Danes, whole herds died off in France.
It again broke out in 812,1223, 1625, 1710 and 1717 at the two periods last
named visiting Poland and the Russian steppes with peculiar severity. In 1770,
Holland lost 375,441 head of horned cattle, and the same scourge re-appeared in
1806 during Napoleon’s campaign, in Italy killing in Piedmont alone 3,500,000
head. From 1713 to 1796 says the French Feuille du Cultivateur, or agricul
turist’s paper, France and Belgium lost ten millions of cattle. In 1806, after
the forays of the Cossacks of the Don along the banks of Vistula ; iu 1813,
subsequently to the invasion by Scbwarzenburg and in 1855 during the Crimean
war, the pestilence broke out with great virulence.
It would seem according to these statistics, that the disease has always revealed
itself just after some great displacement or agglomeration of masses of men,
and this fact is one of the strongest phenomena connected with the origin of a
disease which seems to attack animals only and to spare the human race. Thus,
it takes its source among barbarian hordes or armies of ill fed and ill clad sol
diers and limits its contagious qualities to the brutes. In 1747, indeed, the New
Zealand importation of diseased hides gave in another origin but this year there
have been no great unusual collections of human beings anywhere but at Mecca
The collection of dead animals carcasses was in the Nile, yet, it was from Hun
gary alone that the malady took its origin to fall afterwards on England after
having skipped the other countries of Europe. The disease appears to be
limited to London and a few adjacent counties and many savants believe that it
is not the old malady of preceding centuries but a comparatively simple pleurop
neumonia which in France, at last, is successfully treated by the cattle doctor.
Their alleged reason for this belief is that infants of from two to eight months
fed upon the milk afterwards shown to have been infected have died of well
defined typhoid fever—a reasonable result of pleuropneumonia in the milch cat
tle which alone are the victims of the present scourge whereas iu former cases
the sickness attacked other kinds of cattle and spared the human race. If this
be true, abstaining from the use of suspicious milk would secure from the direct
effects of the pestilence those who have hitherto made it a portion of their diet;
and treatment for the ordinary sickness named would restore the cattle.
COFFEE,
A recent author gives a very learned account of the discovery of the coffee
shrub “ during the latter part of the seventeenth century,” the whole of which
is a myth, and was probably designed as a bit of humor, although it has been
extensively copied as veritable history. It is true that Western Europe first be
came acquainted with this beverage at the date indicated. The earliest mention
of its use in England which we can find is an account in 1652 of its preparation
by Pasqua, a servant of one Daniel Edwards, formerly a Turkish merchant, who
brought the berry and the art of cooking it from the land of his sojourn. It is
said that Solomon Aga, the Turkish Ambassador, made its use known in Paris
in 1669, but it was not until 1672 that the first coffee house was opened in that
city. The shrub was first planted in Jamaca in 1732, but its early culture was
much neglected.
I860.]
Mercantile Miscellanies.
165
We must go to Arabian records, however, for the history of coffee. There it
was indigenous to the soil, and there it has ever been found in its highest per*
fection. The use of coffee in Arabia can be distinctly traced back to the mid
dle of the fifteenth century. Among the Greeks and Romans it appeared to
be unknown, and it was first introduced into Constantinople about 1554. The
old manuscripts contain some very curious records of the strife amid which it
won its way to public tolerance. The city of Aden boasted of setting the ex
ample of its public use about 1450 ; Mecca and Medina followed, although not
without great opposition from the religious authorities. The Koran forbids the
use of intoxicating beverages, and coffee was supposed to belong to the inhibited
•lass. In 1500 it became popular in Grand Cairo, when its use was fiercely as
sailed by the sterner adherents to the Moslem faith. Abdalla Ibrahim in 1523
publicly denounced it, and its friends and foes disputed the question so tena
ciously, that at last they came to blows, and a stormy riot was the result. The
beverage maintained its ground, however, and its constant use having dispelled
the illusion concerning its inebriating qualities, it was quietly tolerated for a
while, and ultimately came to be universally esteemed as an innoceent and health
ful refreshment. A manuscript more recently discovered, and now in the royal
library at Paris, ascribes the discovery of coffee to Dhabani, a celebrated scholar
in Arabia Felix, in 870 of the Hegira, but this was more than forty years after
its common use in the city of Aden.
The coffee tree is an evergreen shrub, varying in height from 8 to 20 feet, and
is grown from the seed. After it is two years old it commences to bear, produc
ing a purple berry of an oval shape, about the size of a common cherry This
berry has the seed at the core in separate cells, and these seeds are the coffee bean
as it comes to market.
The English have never been large consumers of coffee, tea and beer having
had the preference for a century. Germany is first in the list of consumers, and
the United States stands next on the roll. The French of Paris and the large
cities are great collee drinkers, but the light wines form a cheaper substitute in
the provinces. The total annual product o( the world is set down, in a recent
circular, at an average of about six hundred and seventy-two million pounds, or
lay three hundred thousand tons. Half of this is produced in Brazil, where the
tree grows far more luxuriantly and bears more heavily than in its early Eastern
home. The increased product, however, brings with it a rankness of flavor
which makes the Rio least favored by persons of delicate taste. About
50,000 tons comes from Java and Sumatra, 30,000 tons from Ceylon, 25,000 tong
from St. Domingo, and the remainder from a variety of other countries or islands
in or near the torrid zone. The consumption has been estimated by Mr. Moring
at 23J per cent for the German Zallverein, 18} per cent for the United States,
14t per cent for Holland and Belgium, 10} per cent for France, 8 per cent for
Austria, 7} per cent for Southern Europe, 7} per cent also for Northern Eu
rope, 5i per cent for Great Britain, and 5 per cent for all the rest of the world.
We do not regard this as a very exact division, but it will answer very well to
give a general idea of the distribution of that portion of the crop which is pre
pared ior market.
100
M ercantile M iscellanies.
[February,
In this country the Rio and other strongly flavored descriptions have been
used at the West and some parts of the South, the more delicate kinds being
reserved for epicures in all parts of the country, chiefly at the North and East.
The high prices brought about by a heavy import duty, and the depreciation of
the currency, have greatly increased the tendency to adulteration, and this has
been facilitaed to an alarming extent by the large sales in a “ prepared” state
and the gross carlessness of purchasers. Of course, to purchase coffee roasted
and ground is to invite adulteration, and manufacturers are not slow to avail
themselves of this privilege. If only chicory, roasted peas, and other compara
tively innocent substances were used in this mixture, the fraud would not be so
reprehensible ; but we have reason to believe that a large portion of the adulter
ants are much less innocuous. In 1862-63 the official record of coffee imports in
to the United States was 80,461,614 pounds, costing abroad in gold $10,395,860, while 10,641,350 pounds of chicory were landed at a cost of $305,983.
Some of this so called chicory we tested, and found it altogether spurious,
plausible flavor having been imparted to it by a solution of licorice paste mixed
with some pungent spices. Even if we return to lower prices for coffee, the lazy
habits of American housekeepers will still encourage the sale of ground coffee
without examination, thus inviting adulteration, and driving the honest roasters
altogether from the trade.
But perhaps the most audacious exploit of the coffee merchant is one of late
date. It is well known that the United States government supplied its soldiers
in the field, during the late war, with the finest of coffee ; while to the citizen
was left the commonest trash at the highest figure. Under these circumstances a
firm in New Tork, prompted, no doubt, by humanitarian feelings, undertook to
revamp the grounds left from the camp-kettles, by dryingand mining, hundreds of
barrels of which were returned to New York and sold as extra Rio to the great
satisfaction of our citizens.
CATTLE YARDS OF CHICAGO.
<ill
order to accommodate the immense amount of live-stock brought to the
Chicago market the different railroad companies, as well as private individuals en
gaged in the trade, have found it necessary to construct, from time to time
extensive cattle yards. These yards were necessarily scattered around and widely
separated from each other, and very great inconvenience was occasioned therebyWhenever a herd of cattle were to be transferred from one line of railway to
another, they would have to be unloaded, driven through the streets perhaps
several miles to the yards of the company over whose line they were to continue
their journey, and then placed in other cars. Another evil of this system was
that most of the yards were situated in or near the city, and were generally
regarded as a nuisance by those residing in the vicinity. The increase of the
cattle trade made it necessary that such arrangements should be made as to
afford more convenience and less delay in the transhipment of cattle; accord
ingly a plan was proposed that all the railroads centering in Chicago should
unite in building one mammoth stock yard, sufficient for the wants of all, and
situated in such a place as could be easily reached by all the roads and by the
In
1866.1
M ercantile M iscellanies.
167
public, and at the same time be sufficiently remote from the city. This plan
was at once acted upon, and all the railroad companies agreed to enter into the
project. A company was organized with a capital of $L,000,000, and in a
short time all the stock was taken—the greater portion by the railroad com
panies, and the remainder by the leading cattle dealers and packers of Chicago,
Immediately after being organized, the company purchased 345 acres of land,
several miles from the city, and the work of building the yard was commenced
about the first of June.
Large drains sis feet deep were dug. running north
and south through the grounds, 150 feet from each other, and running into these
from the east and west sides were numerous small drains two feet deep and 36
feet apart. After completing the draining, the whole yard was planked. This
was done by placing large sills on the ground, putting joists over them, and
nailing on these joists heavy pine plank. After the planking, which extends
throughout the whole yard, the place was surveyed out into blocks, and then
divided into pens. These pens vary in size from 20 feet by 35 feet to 85 feet
by 112, and in capacity from one to 13 car loads. They are so arranged, how
ever, that at any time two, three or four of the pens can be thrown into one.
There are in all 500 pens, and they are all numbered so that they can be easily
found. The pens for cattle are open on top, while those for hogs are covered
with shed-roofing. The place is divided into streets aDd alleys cutting each
other at right angles. Each of these streets is designated by some particular
number or letter, and vary in width from 33 to 75 feet. The alleys are from 16
to 24 feet wide. At the entrance to every pen there are two gates, which when
open swing right across the street, and thus stop up the thoroughfare, so that
when the cattle come to it they cannot go further on, and being unable to turn
back must pass into the pen. The gate is then closed and they are safe. Around
the whole 345 acres there will be a high board fence.
Through every stall runs a two-inch iron pipe connecting with a four-inch
pipe running through the ground at the depth of over two feet. These pipes
will conduct water for the use of the stock into every part of the yard, all the
drovers need do is to turn on the water, and it flows into troughs in any re
quired quantity. When finished, there will be more than six miles of the water
pipes running through the yards. It is estimated that there will be over 500,000 gallons of water used aroimd the place daily, and where the supply is to
come from has not yet been determined. A well has been dug, and, at the depth
of seventy feet, a fine spring was struck, which flowed so rapidly that the work
men experienced some difficulty in escaping with safety. A very large quantity
is now used from this well, and yet the supply continues as great as ever. The
company are in hopes of being able to obtaiu a sufficiency of water for all pur
poses from several of these wells, and they are now having two made.
On two sides, the east and west, numerous railway tracks are laid down for
the accommodation of all railroads centering in Chicago. There are nine rail
roads interested in the undertaking, each of which has 1,000 feet of track for its
own particular use.
In connection with this immense cattle yard, there will be erected a very
large hotel, sufficient to accommodate several hundred persons ; a bank and ex
[February,
M ercan tile M isce llanies,
change building, at which all the financial business of the yards will be transac*
ted. Other buildings, consisting of stables, stores, workshops, and dwellings
are also being erected by the company in the vicinity of the yard. The work
at present in hand will cost about $500,000, but what the ultimate cost will be
the company themselves cannot estimate.
NON-OCCUPATION VITIATES INSURANCE.
T he Supreme Court of Massachusetts has just made a decision of much im
portance to the insured. It is, that when a policy of insurance contains a clause
to the effect that if the building insured is unoccupied for any time, without
notice to the office, the policy is void ; the building must actually be in use dur*
ing that time; it is not sufficient that everything remains in readiness for use
and occupancy, and it is visited every day. The case that brought out this
decision was the suit of one Keith vs. the Quincy Mutual Insurance Company,
to recover the insurance on a trip-hammer-shop, destroyed by fire.
The building, which was connected with other shops, was unused, sometimes
for months, though it was always kept ready for service and was visited every
day to see that everything was straight. But the Judge ruled that this was not
enough to constitute occupancy, and if the building had remained without any
practical use for thirty days—the time specified in the policy— »t was reaily an
unoccupied building for that time, and the policy became void; and the full
bench have sustained that ruling. In this case it was the renewal of an old
policy that had no such clause in the original, and the plaintiff testified that he
did not know that the clause was in the new policy $ but his ignorance made no
difference in the decision.
In this view of the case, there are a great many unoccupied buildings, and a
large number of insurance policies are voided, if they have a clause compelling
the occupancy of buildings all the time, without notice is given to the contrary.
People who leave their houses for a month or two in the {Summer, though they
may, perhaps, be visited every day, are liable, under this ruling, to lose their in
Burance if the house should be destroyed by fire ; and the same is true of an
unoccupied office or shop. It is important, at all events, that people who have
their buildings insured should know exactly what their policies require, or they
may become liable at any time to lose their insurance in case of fire, through
some trifling, perhaps merely technical, violation of the terms imposed by the
insurance companies.
CONTENTS
ART.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
OF
FEBRUARY
PAGE
ART,
NUMBER.
PAGE
Of the Balance of Trade....................... 89 19. l’ublic Debt of Massachusetts............... 144
Treasure Movement dur ng the Rebellion 95 20. Finances of St. Paul. Minn.................... 145
Marine Lossess—Disasters in 1S65......... 99 21. The City Debt of Toronto .................... 146
Imports of Dry Goo<!s at N.Y. for 186 ),. DO 22* Journal of Insurance............................. 147
Lumber Trade of Chicago...
..
. 101 23. Insurance against Accidents.................. 148
Commercial Law.—No. 30. Marine In
24. Mines and Mining Statistics................... 149
surance ............................ .....................107 25. Wen th of Virginia......... ........................ 151
Analyses of Railroad Reports. No. 5.. 115 2*5. <ommercial and Industrial Statistics... 152
British and New York Railroads......... 119 I 27. Photographic Discoveries...................
155
Petroleum for 1865.................................. 122 2r. The Monster Bells of the Wor d .......... . 157
Commercial Chronicle and Review..... 128 29. Suleratus by the Acre.................... . . . . 158
Journal of Banking, Currency, and Fin
80. Worsted Goods...................................... 158
ance........................................................131 81. Manufactures of Lowell......................... 153
The United States Debt......................... 183 32. Siati tics of Population . ,.. ................... 159
Insurance Dividends................................ 134 33. Census of Iowa___*............................... 161
Treasure Movement at New York for
8i. Mercantile Miscellanies............................161
the last Seven Years.......... .............. 135 5. The i attle Plague................................. lo8
Federal, State, and Municipal Finances.. 140 36. C< ffee........................................ .......... 164
Ohio State Debt ................................... 142 87. Cattle Yards of Chicago 4...................... 166
Debt of the State of Illinois
............ 143 38. Non-o.cupation vitiates Insurance...... . 160
Michigan State Debt..............
143
@FedFRASER