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

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THE

MERCHANTS’ MAGAZINE
AND

COMMERCIAL REVIEW.
J A N U A R Y , 1 865.

CORNELIUS VANDERBILT.
The influence of one earnest, energetic life upon the world is scarcely
appreciated. Where that life has given birth to some grand idea, we
readily see the effect upon society. The inventor of the cotton gin, for
instance, worked a revolution apparent to all wherever cotton cloths are
made or used. But when one’s life, though successful, is not thus signa­
lized, its influence upon the present and future is not so readily appreci­
ated. In a biography, too, we must fail to show it, for it is only now and
then that the acts of even our most prominent men attain publicity. The
steady flow o f their lives carries with it a power felt by every one, although
not always acknowledged or even known. Like the current o f a river,
noiseless though it be, yet making every object it touches on either bank
bend beneath its influence, until the land itself is shaped by the river that
thus flows through it, so the acts, views and purposes o f all men, yes and
the external and internal policy o f the country itself, are shaped by the
few who have a decided and single purpose in life, and the energy, perse­
verance and will faithfully to pursue it. To measure that influence— to
state in every instance its extent and potency, is not, as we have already
said, possible : yet by referring to their mpre public acts we can show,
but only in part, the work that has been accomplished.
Especially is this true in the case o f those eminent in the commercial
world. Is not the progress and glory of this city inseparably connected
with, and almost made up of, the lives and works of the merchants and
commercial men who have held, and now hold, the foremost rank ?
Without the results they, and others like them in sister cities, have
accomplished, would not the wealth o f the country be still unproductive
and its commerce undeveloped? Lawyers and politicians may claim and
obtain the official positions, but if there is progress, the power that pro­
pels the ship must come from commercial men.
W e place at the head of this article the name o f one whoso life has
thus contributed very largely to the general prosperity o f the country; a
vol.

m . — n o . i.




1

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Mercantile Biography :

[January,

name inseparably connected with our commercial history, and synony­
mous with the rapid growth o f our merchant navy. His enterprise,
genius and success are known and felt the world over, and we propose to
follow the course o f his life, briefly noting, in many instances, the
motives of action as well as the acts themselves, and thus adding a valu­
able page to history, while furnishing incentives to young men every­
where.
The sturdy Knickerbocker habits o f industry, developed so early, and
forming, as it were, the corner-stone in the character o f Commodore
V anderbilt , may be traced to his ancestors, who left Holland for America
at an early period in the history of New York. His father, whose name
was also C ornelius , settled on Staten Island, living very comfortably and
pleasantly on his own farm. A t that time the Island was divided into
large estates, being worked by those living there, for the purpose of rais­
ing supplies for the city. Communication with New York was o f course
a necessity, and many o f the Islanders, therefore, kept small sail-boats, for
the purpose o f carrying their products to market. As the inhabitants
increased, other facilities for communication became necessary, and Mr.
V anderbilt , Sr., would, at times of leisure, undertake to convey those
not having boats themselves. Ouc of this, and the demand for some
public and regular communication, grew up a ferry, which he established
in the form of a perryauger, departing every morning for the city and
returning every afternoon.
In the meantime, however, and on the 27th day of May, 1794, a son,
the subject o f this sketch, was born to Mynheer V anderbilt . Young
C ornelius was not one o f those sleepy babies, making no trouble (the
pride of our Dutch ancestors) but very early showed that he had voice,
will, muscle, and mind. As the days o f his infancy merged into those o f
boyhood, his naturally ambitious temperament began to develope itself
and assume shape. Books he did not seem to fancy. It was the practi­
cal of life rather than the theoretical that engaged his thoughts. Even
thus early his aim appeared to be to strike out new and untried paths,
rather than to walk along the well-worn old ones. A school was too
confining for his restless nature, and neither the urgent entreaties of his
mother, nor the more forcible logic of his father, could convince him of
the great importance of a thorough school education. His disposition led
him to draw his knowledge from another source, making nature his in­
structor : and so absorbed did he become in the execution of his many
plans and ideas, that it was with difficulty he could find time for his
meals.
But it was not until he was sixteen years of age that he entered upon
his first independent business venture. Living upon the Island, being of
necessity much upon the water, he early developed a fondness for that
kind of life, as affording the widest scope for his ambition. Thus far he
had acted for others, but now he wished to strike out for himself, and de­
termined, therefore, to have a sail-boat o f his own. He went to his father
and made known his plan and desire. Little encouragement did he re­
ceive, his father deeming it rather a dangerous and uncertain business for
so young a boy. Not discouraged, he continued to plead his cause with
the greatest earnestness, and finally received the qualified promise that if
he could accomplish a certain amount of work on the farm the money




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Cornelius Vanderbilt, o f New-Yorlc.

11

should be furnished. The task set was no slight affair. To do it would
require time— more time than he could consent to give, with his enter­
prise delayed. In the absence o f his father, therefore, he determined to
make the job a short one. Being popular with his companions in the
neighborhood, young V anderbilt imparted to them his secret, and sum­
moned them to his aid. Meeting with a hearty response, they all went to
work with a will, and soon completed the allotted task. A t once he report­
ed to his mother the successful achievement, and claimed the boat. Her
aversion to his proposed business was as great as his father’s, and she also
tried to dissuade him. But it was of no use. His purpose was fixed, and fear­
ing that if this cherished project fell through he might carry out his oft ex­
pressed intention of running away to sea, she gave him the hundred dollars
as being the lesser evil. W ith the money in hand, he was soon at the PortRichmond shore, where the selected boat was snugly moored to the dock.
The purchase was made at once, and with a proud heart he took posses­
sion of his long-coveted prize. One can easily imagine the sensations of
this boy of fourteen, as he first walked the deck of his little craft, and set
sail for home. He was now a full-fledged captain— a man of business—
dependent upon his own exertions. What visions must have danced
through his head of future successes! But every picture has its shadows.
As the little boat, freighted with so many hopes, was cutting its way
through the water, a rock in the Kills was struck, and our, as yet, inex­
perienced sailor was only able to run the boat ashore before it sunk.
Here was certainly a discouraging accident. Still, nothing daunted, the
young captain at once brought to his service the needed assistance, and in
a few hours all damage was repaired, and his little craft safe and sound at
the Stapleton dock.
An important point had now been gained. No great work to be sure
had been accomplished, but the means to an end were obtained. He had
stepped out from under his father’s care, and was the owner and captain
of a boat. The world was now before him. Launched upon life’s broad
sea, his character must at once show itself. In every community there
will be found three classes o f young m en: those who boldly put forth
their energies and cleave for themselves a way through life; those who
simply float along the plqy of every wind and tide ; and those who sink
at once. The latter class would have taken this little boat, enjoyed a
pleasurable but brief existence, while indulging every folly and every pas­
sion of youth, and making a speedy shipwreck o f their characters and
hopes. Another, with little force of character, would have wistfully looked
out upon the vast expanse before him, waiting for fortune to come, half
frightened, leaning upon friends for support, and thus, by using these lifepreservers, have been able just to keep his head above surrounding waves.
But the hero in the strife makes good and bad fortune equally his servant.
Striking always with a strong arm and a brave heart— prepared alike for
failure or success— a way is soon cleared : even the most discouraging
circumstances becoming subservient to his wishes. Thus, young V a n ­
derbilt was now in a position to choose what should be his future: the
question to be decided was, should he rise, float or sink. Many and varied
difficulties at once beset him. Young and inexperienced as he was, he
must necessarily compete with older heads, long used to the work, and
with reputations made. He felt, therefore, that he could not simply float,




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Mercantile Biography:

[January,

he must fight or fail, and feeling thus, at this early day, when but sixteen
years old, he set up his first opposition line— a prophetic miniature of
later efforts.
Of course, in such a position, and with such ideas, V anderbilt could
not be idle. He at once made the necessary effort to obtain business, and
succeeded wonderfully. A t that time the fortifications of Staten and Long
Islands were being built by Government, and the carrying of labourers to
and from New York furnished work for him and his perryauger, which
was quite remunerative. Amid, however, these first successes one fact
troubled him. The money that bought his boat came from his mother ;
and this being so, he could not feel that perfect independence his spirit
craved. Day by day, therefore, from his first earnings, he scrupulously
laid by every cent that could be saved, for the purpose of returning this
sum ; and but a little time elapsed before he quietly placed in his
mother’s lap the hundred dollars. Probably a happier, prouder child
never lived than C ornelius V anderbilt at that moment; and he had
certainly won the right to be so.
W e thus see with what spirit and earnestness, this mere boy laid hold of
the stern realities before him. His life was regulated by self-imposed rules,
and with a fixedness of purpose as invariable as the sun in its circuit. Among
other things he determined to spend less every week than he earned. W e
have already seen the first fruit of this careful management; but it speedily
produced other results, for very soon he was able to extend his business, by
purchasing with his savings a vessel of larger dimensions than his first little
craft. Thus, for three or four years, he went on daily adding to his world­
ly means, until on his eighteenth birth-day, he found himself part owner
and captain of one o f the largest perryaugers in the harbor of New York,
and shortly after became also interested in one or two other smaller boats
engaged in the same business. In the meantime he almost lived on the
water, carrying freight and passengers, boarding ships, and doing everything
else coming within his line. Not satisfied with working all day, he under­
took, and continued through the whole war of 1812, to furnish supplies by
night to one of the forts up the Hudson, and another at the Narrows. In
fact his energy, skill and daring became so well known, and his word, when
he gave it, could be relied upon so implicitly, that ‘‘ Corneile, the boatman,”
as he was familiarly called, was sought after far and near, when any expe­
dition particularly hazardous or important was to be undertaken. Neither
wind, rain, ice nor snow ever pi evented his fulfilling one of his promises.
A t one time, during the war, (sometime in September, 1813,) the British
fleet had endeavored to penetrate the port during a severe South-easterly
storm just before day, but were repulsed from Sandy Hook.
After the
canonading was over, and the garrison at Fort Richmond had returned to
quarters, it was highly important that some of the officers should proceed
to headquarters, to report the occurrence, and obtain the necessary rein­
forcements against another attack. The storm was a fearful one— still the
work must be done, and all felt that there was but one person capable of
undertaking it. Accordingly, V anderbilt was sought out, and upon being
asked if he could take the party up, he replied promptly— “ Y es, but I
shall have to carry them under water part o f the way P ’ They went with
him, and when they landed at Coffee-House Slip, there was not a dry
thread in the party. The next day the garrison was reinforced.




1865.]

Cornelius Vanderbilt, o f N ew -Y ork.

13

V anderbilt also showed in these earlier days, what he has frequently
exemplified in his later life, that he was very tenacious of his rights, and
determined that no one should infringe them. On one occasion, during the
same war, while on his way to the city with a load of soldiers from the forts
at the Narrows, he was hailed by a boat coming out from the shore, near
the Quarantine. Seeing an officer on board, young V anderbilt allowed it
to approach him ; but as it came nearer, he saw that it belonged to one of
his leading competitors, and that the owner himself was with the officer.
Still he awaited their approach, preparing to defend himself in case of any
unauthorized interference. No sooner, however, were they alongside of his
boat than the officer jumped on board, and ordered the soldiers ashore with
him in the other boat, for inspection, etc. Young V anderbilt seeing that
the whole affair was a trick to transfer his passengers to his competitor, at
once told the officer that the men should not move, that his order should
not be obeyed. The military man, almost bursting with rage, hastily drew
his sword, as if about to avenge his insulted dignity, when young V ander ­
bilt quickly brought him, sword and all, to the deck.
It did not take him
many minutes more to rid himself of the officer and his companion, and
quickly getting under way again his soldiers were soon landed, without
further molestation, at the Whitehall dock.
But we have not room to dwell longer on these boyish exploits. They
are important, however, as they forcibly illustrate the life and character of
the man. Thus, the labors of young V anderbilt having been rewarded
with success, he now felt that the time had come when he might prudently
carry out a long cherished wish. Having previously wooed and won Miss
S ophia J ohnson, of Port Richmond, Staten Island, they were married on
the 19th of December, 1813. They settled temporarily on the Island, re­
maining there till the fall o f 1814, when they moved to New York. About
this time V anderbilt became the master and owner of the new perryauger
Dread, just launched, then by far the finest and largest craft traversing
the bay of New York. In the summer of 1815 he built, in connection
with his brother-in-law, D e F orest, a schooner remarkably large for her day.
This vessel justly elicited the praise o f others, and the pride and satisfaction
of its owners. It was called the Charlotte, was commanded by D e F orest,
and profitably employed as a lighter, carrying freights between numerous
home ports. Thus up to the year 1817, with varied experience, but always
with success, V anderbilt continued interested in the business we have in­
dicated, improving the construction of vessels, and adding to’ his reputation
among nautical men. Seven years were passed in this manner, from the
time he was sixteen till some months after his twenty-third birth-day, la­
boring incessantly. During the last four years he had laid up nine thou­
sand dollars of his earnings; yet his ambition was by no means satisfied.
A new element had within a few years been made subservient to the pur­
poses of navigation, and quick to see the importance o f this powerful agent
steam, as thus applied, he determined to devote himself to exploring and
developing its mysteries, as soon as an opportunity could be obtained.
About this time he became acquainted with T homas G ibbons , of New
Jersey, a large capitalist, then extensively interested in the transportation
of passengers between New York and Philadelphia. Very soon G ibbons
proposed to take him into his employ, and offered him the position of cap­
tain of a little steamer, at a salary of one thousand dollars a year. For




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Mercantile Biography :

[January,

one who had always been his own master, and was then making enough to
lay up nine thousand dollars in four years, such a position would appear to
offer few inducements. And if he had studied alone his present interests,
certainly he would have declined it at once. But as we have already stated,
he was not acting with the expectation o f obtaining an immediate return—
he saw with his clear head the future triumphs o f steam, and determined
to participate in, if not direct them.
W ith such motives, in the Fall of 1817, V anderbilt entered upon the
duties of captain of his first steamboat.
This boat was so little that its
owner soon after changed its name, re-christening it “ The Mouse o f the
Mountain.” In a few months he was promoted, and put, in charge of the
Bellona, a much larger boat, being then just completed and ready for her
trial trip. This vessel was at once employed on the Philadelphia line, in
carrying passengers between New York and New Brunswick. About this
time V anderbilt left New York for Elizabethport, and after a residence at
that place of a few months, moved with his family to New Brunswick, his
business engagements requiring him to spend his nights there. It will be
rememberedthat the passengers enrout for Philadelphia remained at New
Brunswick over night, to be in readiness for the early stage to Trenton,
where they again took boat for Philadelphia. Mr. G ibbons himself owned
the Stage House, where the passengers then remained over night, and of
course the proper reception and treatment of travellers was an indespensable
condition to the prosperity of the whole rout. He, therefore, having be­
come unfortunate in the management of his hotel, shortly after V ander ­
bilt moved to New Brunswick, offered it, to his new captain, free of rent, if
he would, in addition to his other duties, take charge of it. V anderbilt
finally accepted this proposition, and continued at the head of the house
during the remainder of his business connection with Mr. G ibbons , conduct­
ing it so successfully that it proved a source of considerable profit. In 1827,
while still in the employ of Mr. G ibbons, he leased of him the New York
and Elizabethport ferry for seven years, and ran it on his own account. At
the end of that lease it was renewed for seven years more. This enterprize
was managed so skilfully that it also brought him in large returns, although
previous to his taking the lease, the working of the ferry had proved unremunerative.
In the meantime V anderbilt began to think it was time for him to
act for himself again.
He had been in the employ of Mr. G ib ­
bons for twelv^years, and during those years had, with such faithfulness,
care and persevering industry, watched over the interests intrusted to him,
that the line rapidly advanced in prosperity until then it was netting nearly
forty thousand dollars a year. Every new boat constructed under his super­
vision, was made better and fleeter than its predecessors, enabling him to
drive away all opposition, while his quick and active mind took hold o f
every new circumstance arising, making it subservient to his purposes.
To understand some of the difficulties with which V anderbilt was sur­
rounded, at the time he first became captain o f the Bellona, we must re­
call the early history of steam navigation. It will be remembered that in
1798, an act was passed by the Legislature of New York repealing a pre­
vious act, and transferring to Mr. L ivingston the exclusive privilege of
navigating the waters of the State by steam. This act was from time to
time continued, and F ulton was finally included in its provisions. In 1807,




Cornelius Vanderbilt, o f N ew -York.

15

after the trial trip of the Clermont, the Legislature, by another act, extend­
ed this privilege, and in the following year subjected any vessel propelled
by steam to forfeiture, which should enter the waters of the State without
the license of those grantees. These acts were in force when V anderbilt
entered the employ of Mr. G ibbons , and the Philadelphia line violated the
privilege thus granted, in case the boats stopped at the city o f New York ;
and, hence, for a longtime, whenever V anderbilt ran a steamer in on the
New York side of the river, as he was instructed by the owner to do, he
was arrestsd if he could be found.' As an expedient, to avoid arrest, he
taught a lady how to stear the boat, and when it neared the New York
dock, he would turn it over to her charge, and disappear himself; so that
the officers were frequently compelled to return their writs against him
unon est." At this time, it will also be remembered, the New York Court o f
Errors had pronounced these acts constitutional, the New Jersey Legisla­
ture had passed retaliatory acts, and a suit against G ibbons was in progress
in the United States Court. To make this line prosperous under such dif­
ficulties, and against such opposition, was, of course, no ordinary task. Still
it was at once accomplished as we have stated. At lengthy and in 1824,
the G ibbons case was decided, Chief-Justice M arshall delivering the
opinion of the Court, to the effect that, under the Constitution of the Unit­
ed States, no State could grant an exclusive right of navigation, by steam
or otherwise, on any of the principal rivers o f the country; and, as a con­
sequence, navigation on the Hudson and elsewhere became free to all.
W ith this obsticle removed, V anderbilt went to work with renewed vig­
or, steadily pushing forward his employer’s enterprise, until it produced the
remarkable revenue noted above.
Thus having labored faithfully for others with such brilliant results, he
now felt at liberty to look after his own interests more exclusively, and to
commence business again on his own account. Therefore, in 1829, he in­
formed Mr. G ibbons of his plan to leave him.— “ You must not,” he re­
plied, “ I cannot cany ou this line a day without you.”
He then offered
to increase his salary to five thousand dollars, or more, if money was his
object. But V anderbilt had thought well before he decided on the step
he was about to take, and at once refused the offer. Finally, G ibbons told
him he could not run the line without him, and that he might have the
Philadelphia rout, saying, “ There, V anderbilt , take all this property,and
pay me for it as you make the money.” This tempting offer was also de­
clined, for he was unwilling to put himself under such an obligation to any
one, although fully sensible of the great kindness that prompted it. Thus
ended V anderbilt ’ s engagement with Mr. G ibbons , and soon after Mr.
G ibbons sold out the line to other parties, finding that the life o f it was
gone.
Once again the captain was now his own master. He had served a long
time in a severe school to make himself thoroughly acquainted with the
details and practical management of steam navigation. The next twenty
years of his life we must pass over rapidly. A t once applying himself to
the work before him, with the same wisdom and that earnest, steadfast zeal
he had ever shown, successful results followed. During this period he built
a very large number of steamboats, and established steamboat lines on the
Hudson, the Sound and elsewhere, in opposition to corporations and com­
panies having a monopoly of the trade, and making travel too expensive to




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Mercantile Biography:

[January,

be enjoyed by the many. His plan was always to build better and faster
boats than bis competitors, to run them at their lowest paying rates, and
thus furnish passengers with the best and cheapest accommodations. That
he has made enemies in doing this we will admit, but that society at
large has been greatly benefitted thereby, we fearlessly assert. W e do not
claim that V anderbilt by his every act has sought alone the public welfare
— that he has never allowed himself to be influenced by self interest— but
let the man that is without sin in this respect (if sin it be) cast the first stone.
Besides, as we have already said, the great result of his opposition has been de­
cidedly good to the country. Commercial growth presumes rivalry, and there
can be no healthy trade without competition. Brand every man with approbrious epithets who undertakes to compete with another, and their will be an
end to all enterprize— an end to our prosperity and growth as a nation. The
property of individuals or corporations may suffer in the conflict, but the
country at large does not and should not care for that, so long as it is
better served— so long as the great result is progress.
Thus engaged, these twenty years were past, contributing greatly to the
rapid growth and development of steam navigation. In the meantime, the
gold ot California had been discovered, and the rush of passengers and the
pushing forward of merchandise to that remote portion of our country ne­
cessitated the building of the Panama Railroad, and the establishment of
the Pacific Mail Steamship Company to run in connection with it.* The
immense travel over this route led V anderbilt to determine to seek another
transit route, in connection with which he could put on a competing line
between New York and California. W ith this intention on the 12th of
August, 1849, he obtained from the government of .Nicaragua a charter for
a ship canal and transit company. This charter was subsequently amended
by additional stipulations granting to C ornelius V anderbilt and his asso­
ciates the exclusive right to transport passengers and merchandise between
the two oceans by means of a railroad, steamboats, or otherwise, and
separating the transit grant from the canal grant. In 1850 V anderbilt
built the Prometheus, and left in her on Christmas day o f that year for
Nicaragua. The party were three weeks exploring the region, and during
the whole of that time they were either on foot, on horse-back, or in an
open boat, satisfying themselves of the practicability of the route. The
original plan was to make Realegjo the Pacific port, but finally the then
but little known harbor of San Juan del Sur was fixed upon. Thus having
explored and mapped out the transit route from ocean to ocean, he at once
went to work to put the line in operation. Having built the little steam­
boat Director to run up the San Juan River, he towed it all the way to
Nicaragua, and personally superintended the laborious, wearisome, and diffi­
cult task of taking her up over the rapids. This accomplished, the transit
company was formed, the route was opened, and a semi-monthly line to
California, via Nicaragua, was established in July, 1851. W e can scarcely
appreciate now the difficulties of this undertaking; yet all will agree that it
required a man with a clear head, and a will that never yields to obsticles,
to plan and execute it. Under his management, also, the route became a
favorite one, and the price of passage between New York and San Francisco
* The Railroad was Burveyed in 1849, and finished in 1855. The P. M. steamships
ran in 1848.




1865.]

Cornelius Vanderbilt, o f N ew -York.

17

was permanently reduced from six hundred to three hundred dollars. He
constructed very many first-class steamers for both the Pacific and Atlantic
sides of this line, and it was continued in successful operation until January
1st, 1853, when V anderbilt sold his steamers on both sides to the Transit
Company. After that he acted as the company’s agent for a few months,
and then his connection with it ceased, until January, 1856, when he was
chosen president. In the meantime, W illiam W alker had landed in
Nicaragua, and V anderbilt having taken ground against his “ filibusterism,”
and refused to carry his men and munitions, W alker issued a decree on
the 18th of February, 1856, annulling all grants to the company and the
acts of incorporation. After this there was a long series o f plots and counter
plots, all of which would be interesting in a history of Wall Street, but we
have not room for it here. W e will add, however, that very many unsuc­
cessful attempts were made by different parties to obtain the right to open
this route, until finally, when every difficulty of that kind had been re­
moved, it was found to have become almost impracticable— a sand bar
having formed at the mouth of the San Juan River.*
About the time V anderbilt sold out his interest in the Nicaragua
California line he had laid the keel of a new steamship, to be called the
North Star. She was built, as all his vessels have been, under his own
supervision in a very complete manner, and splendidly fitted up with all that
could tend to gratify or please, He had now become a man of great wealth.
From the little boy of sixteen with his hundred dollar sail-boat, he had
gradually but surely crept up, accumulating and so using his accumulations,
that now his vessels plowed almost every sea, and his enterprising spirit was
felt in every part o f our country. It has never been his plan to put away
his money in a chest, nor yet to simply invest it, but rather, in the fullest
sense of the word, to use it. Consequently, it is said that to-day he employs
more men, directly and indirectly, than any other person in the land. Hav­
ing, then, from so small a beginning, worked out such great results, he pro­
posed in May, 1853, to make the tour of Europe, with his family, in the
North Star. The undertaking was a novel one, and yet, as has been said,
in some respects a grand one. By means o f this excursion a display of
American enterprise and skill was made which was o f essential service to
the country. But besides that, for a single individual, without rank, with­
out prestige, without national authority, to build, equip, and man such a
noble specimen of naval architecture, and to maintain it before all the courts
of Europe with dignity and style, was an extremely happy and suggestive
illustration to the old world of what the energies of man may accomplish
in this new land, where they are allowed to have full play, uncramped
by oppressive social institutions, or absurd social traditions. C ornelius
V anderbilt is a natural, legitimate product of America. W ith us, all
citizens have full permission to run the race in which he has gained such
large prizes, while in other countries they are trammeled by a thousand re­
strictions.
For the purposes, then, of this excursion the North Star was built and
furnished. This was the first steamer fitted with a beam engine that ever
attempted to cross the Atlantic. Many steamship men considered engines
thus built impracticable for ocean steamers, but V anderbilt , by his experi* This route is, however, now used, passengers being landed in small boats.




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Mercantile Bioaravhv:

ments on this and many other vessels, has, we think,established the fact, that
they are eminently suited for sea purposes as well as river navigation. But
we shall not attempt any description of the capabilities, or of the beauty
and elegance of this vessel as it then was.* It is enough to say it was per­
fect in all departments. Thursday, the 19th of May, 1853, was the time
fixed for sailing, but as she was leaving her berth the strong current of the
ebb tide caught her on the quarter, and swung her upon a reef of rocks at
the foot of Walnut Street. The damage being slight, however, was soon
repaired, and on the following day she was on her way to Southampton.
To give an account of this excursion, or even a small portion of what was
seen or was said, would require more space than we can spare, and besides
is foreign to our purpose. In almost every country visited they were re­
ceived by all the authorities with great cordiality, as well as great attention.
At Southampton the North Star formed the topic of conversation in all
circles, and the party was honored with a splendid banquet, at which about
two hundred persons sat down. When in Russia, the Grand Duke C o n ­
stantine and the Chief Admiral of the Russian Navy visited the ship.
The
former solicited and obtained permission to take drafts of it, which duty
was ably performed by a corps of Russian engineers. In Constantinople,
in Gibraltar, and Malta, the authorities were also very c'ordial and polite.
But in Leghorn (under the government of Austria) the vessel was subjected
to constant surveillance, guard boats patrolling about her day and night—
the authorities not being able to believe that the expedition was one of
* W e give the following, however, from articles published in English papers after
the arrival of the party at Southampton, showing the opinions, on these points, of
those who are certainly not inclined to flatter Americans.
In regard to the peculiarities of the vessel, the London Times of June 3 ,1 S53, says:
“ Most of the old fangled notions o f builders of English ocean steamers are com­
pletely discarded in the North Star; and although it may be questionable whether
the adoption of so much of the principle of the American lake and river boats into
the uses of trans-Atlantic steamships is, in the long run desirable, yet it is certain that
this beautiful ship is in the highest degree worthy of attention.
*
*
*
*
Her model is the perfection of nautical beauty, and gives promise of the highest speed
at the least expenditure of motive power.”
In regard to the interior o f the vessel the same article says :
“ The fittings of the cabin are the especial theme of admiration of most of the
visitors, and it is difficult to believe that any royal or imperial yacht could be supplied
with greater luxuries or conveniencies, or with greater taste and elegance.”
The London Herald of the same date says:
“ The North Star is one of the finest steam yatchs ever seen. She is fitted up in
the most gorgeous style.”
The London Chronicle of June 9, 1853, says :
“ The saloons and furniture appeared yesterday magnificent in the extreme. Every thing on board the North Star is American, and it is very evident that in many of the
useful and ornamental arts the Americans are our equals in point of taste and skill.”
The London News of June 3, 1853, has the following:
“ Handsome flights of stairs lead to the saloon, which is larger and more magnifi­
cent than the saloon of any ocean steamer afloat, and even surpasses in splendor the
Queen’s yatch, the Victoria and Albert. The carpets and furniture are superb, etc.”
We might multiply these extracts indefinitely, but have given enough to convey an
idea o f the vessel in the estimation of Europeans.




1865.]

Cornelius Vanderbilt, o f New- York.

19

pleasure, but imagining that the steamer was loaded with munitions and
arms for insurrectionary purposes. Thus, after a very charming and de­
lightful excursion of four months, they returned home, reaching New York
September 23, 1853, having sailed a distance of fifteen thousand miles.
This certainly was an expedition worthy and characteristic of the man who
undertook it, and met with that decided success which his efforts ever seem
to ensure.
This visit of Commodore V anderbilt to Europe satisfied him that the in­
terests of our growing commerce required that the facilities of communica­
tion between Europe and America should be increased. Consequently,
soon after his return he made an offer to the Postmaster General to run a
semi-monthly line to England, alternating with the Collins line, carrying
the mails on the voyage out and home for fifteen thousand dollars. It will
be remembered that the Cunard line was at that time withdrawn from the
mail service on account of the Crimean war, and his plan, therefore, was
to provide for weekly departures, filling up those thus left vacant. This
proposition, however, was not accepted ; nevertheless, not willing to aban­
don the idea, on the 21st o f April, 1855, he established an independent
line between New York and Havre. For this purpose he built several new
steamships, and among them the Ariel, and finally the Vanderbilt, and the
line was kept up with great spirit and very successfully.
Subsequent to
the building of the Vanderbilt, there was an exciting contest of speed be­
tween the boats of the different lines. The Arabia and Persia, of the Cu­
nard, the Baltic and Atlantic, of the Collins, and the Vanderbilt o f the In­
dependent line, were the competitors. Great interest was taken in the con­
test, as all will remember, but the Vanderbilt came out victorious, making
the shortest time ever made by any European or American steamer.
The subsequent history of this vessel, and the use which is now being
made of it, is well known. In the Spring of 1862, when the administra­
tion needed, immediately, large additions to its navy, to aid in carrying on
its military operations, (an occasion which many were too eager to turn to
their own advantage, at their country’s expense,) Commodore V anderbilt
illustrated the nature of his whole-souled patriotism, by making a free gift
o f this splendid ship to the Government. The following resolution o f thanks,
passed by Congress, and approved by the President, January 28, 1864, is
a fitting, though late, acknowledgement of his magnificent g ift:
Whereas, C ornelius V anderbilt, of New York, did, during the Spriog of eighteen
hundred and sixty-two, make a free gift to his imperilled country of his new and
staunch steamship “ Vanderbilt,” of five thousand tons burthen, built by him with
the greatest care, o f the best material, at a cost o f eight hundred thousand dollars,
which steamship has ever since been actively employed in the service of the republic
against the rebel devastations of her commerce; and whereas the said C ornelius
V anderbilt has in no manner sought any requital of this magnificent gift, nor any
official recognition thereof,— Therefore,
Resolved by the Senate and House o f Representatives o f the United States o f
America in Congress assembled, That the thanks of Congress be presented to
C ornelius V anderbilt, for his unique manifestation of a fervid and large-souled
patriotism.

S ec. 2. A n d be it further resolved, That the President of the United States be re-




20

Mercantile Biography:

[January,

quested to cause a gold medal to be struck, which shall fitly embody an attestation
of the nation’s gratitude for this g ift; which medal shall be forwarded to C oenelius
V anderbilt—a copy of it being made and deposited for preservation in the library of
Congress.

How appropriate it seems that the man who has spent his life in deve­
loping the commerce of the country, should give this, his best effort, for
the defence of that commerce ! He may be sure his country will never for­
get it.
But time would fail us were we to attempt to speak o f all the prominent
acts, and varied interests, in steamboats and steamships, of Commodore V a n ­
derbilt during his life, or even for the last few years— nor is it necessary.
Wherever a line could be established profitably, he has always been ready
to undertake it. He has built and owned, exclusively himself, upwards of
one hundred steamboats and steamships,* and has never had the misfor­
tune to loose one o f them by any accident.
He has extensive machine
shops, where he makes his own machinery, according to his own ideas, and
his vessels have been generally built by days’ work, under his constant supervi­
sion, and from plans entirely his own. Consequently, there have never been
wanting those who have predicted disaster at every new launch. The North
Star, we were told, would certainly go to the bottom, with all the excur­
sionists on board. The Ariel could never cross the ocean ; while the Van­
derbilt was a dead failure. Still they have all managed to sail regularly,
safely and speedily. It is his practice to employ the most deserving and
trustworthy commanders, and never to insure a vessel or cargo of any kind
— believing that good vessels and good commanders are the best kind o f
insurance; and, more than that, if corporations can make money in the busi­
ness of insurance, he can.
His time and money have not, however, been alone employed in deve­
loping the steamship interest. Railroads, and all other commercial enter­
prises, have received a large share of his attention.
In fact, wherever his
money would do the most work, there he has ever placed it; thus greatly
extending and invigorating every commercial interest. Oflate years, how­
ever, and especially since the commencement of this war, he has been gra­
dually retiring from the shipping business, and within a few months has
sold his last steamship, transferring a much greater proportion of his wealth
to railroads, until now he is the largest railroad proprietor in the United
States. The steamboat king is thus turned into a railroad king, as W all
* The following are the names of the principal steamboats and steamships built by
him:—
Steamships.— Prometheus, Daniel Webster, Star o f the West, Northern Light,
North Star, Granada, Ariel, Vanderbilt, Ocean Queen, Galveston, Opelousa, Nagnolia,
Metagorda, Champion, Costa Rica, Port Jackson, New York.
Steamboats.— The Citizen, Cinderella, West Chester, Union, Nimrod, Champion,
Lexington, Cleopatra, Augusta, Clifton, C. Vanderbilt, New Champion, Commodore,
Gladiator, Staten Islander, Huguenot, Sylph, Hunchback, Red Jacket, Kill Von Kull,
Westfield, Clifton No. 2, Westfield No. 2, Clifton No. 3, Cornelius Vanderbilt, W il­
mington, North Carolina, Geo. Dudley, Traveler, Director, Central America, Clayton,
Bulwer.




1865.]

Cornelius Vanderbilt, o f New-York.

21

Street well understands. His property has, in the meantime, accumulated ra­
pidly. Perhaps there are two or three men wealthier than he in NewYork city
— but no more ; and all of this vast wealth is the product of his own labor.
Were we asked the secret of this success, we could answer it no better
than by pointing to the history o f his early life, which we have already
given. As a boy, we have found him an indefatigable worker, ever exhib­
iting remarkable judgment, inflexible will and untiring perseverance; full of
enterprise, self-dependent and self-reliant. The prize, therefore, was clearly
his from the beginning. G eorge Stevenson would never allow that he
possessed any faculty pre-eminently except perseverance. W e cannot agree
with him in this estimate of himseif, and yet admit that the man who is
never discouraged, even though the prospect be dark and gloomy, possesses
one great requisite for success, atid has an immense advantage over his
timid neighbors. But still, one may walk forever on the wrong road and
not reach the desired haven ; the power to judge correctly is, therefore, as
necessary as perseverance. In this particular Commodore V anderbilt has
ever excelled. He appears to possess an intuitive judgement of men and
things. Consequently, all his plans are first carefully considered ; every
possible contingency provided against; so that when he executes them he
strikes with a strong arm, because a confident one. W e see this illustrated
in the first efforts of the boy, and in every conflict and undertaking o f the
man. With, then, such judgment, and with the energy and perseverance
he has ever exhibited, unusual success was the natural result.
Yet amidst his close and continued application to the business o f life, the
kindly feelings of childhood have remained unchanged. The eagerness
with which he has anticipated every desire of an aged mother, is only an
evidence of the heart within him. He was as devoted to her in manhood,
as she to him in early youth. The pretty home-like cottage constructed for
her under his eye, and in accordance with the taste of both, surrounded by
luxuriant vines and evergreens, was a continual joy to her during her life.
There, near her old home, and overlooking the water, the icene of his early
exploits, she happily lived, tenderly cared for, and only a few years since as
happily and peacefully died. How consistent with all his conduct towards
her was the thoughtfulness which prompted him, upon returning from his
triumphal tour of Europe, to stop the steamer in passing up the bay, and
give that mother his first greetings, and receive her welcome home. Few,
as they read at that time the newspaper accounts of his arrival, could have
failed to notice, among the more exciting items, the statement of this simple
fact, and to feel that it was an honor to the son as well as to the mother.
This same kindliness of feeling he has always exhibited in every other
position in life. Deceit and underhand dealing he has ever quickly detected
and thoroughly hated, but frankness and honesty of speech and act have
been sure to find a ready and kind response. During all his contests with
men, he has exemplified the truth of this, ever being ready to act with the
greatest generosity, when thus approached. A certain captain, interested
in a line of boats to Hartford, took steps which V anderbilt considered dis­
honorable, to injure his line of boats to the same place, and therefore
V anderbilt determined to run him off, and did it. About that time, Cap­
tain B rooks , who is an intimate friend of the Commodore, met the defeated
party and asked him how he got on. “ Why, I have put my hand in
V anderbilt’ s mouth, and of course I must give up,” he replied. “ But,”




22

The National Finances.

[January,

said B rooks , “ go and see him, and if you are frank to him, he will he
generous to you.” “ Go 1” said he, “ he would not see me.” Yet after­
wards he concluded to go, and, sure enough,"he came back not only with
the difficulty healed, but with obligations conferred, which he will very long
remember.
Many other similar instances might be mentioned, but it is needless. All
remember the account of the storm which overtook the Ariel in 1859, on
her voyage from Havre. After the vessel had received severe damage from
the fury of the gale, and those in command were exerting themselves to
their utmost to avert the destruction that threatened, a tremendous sea
broke upon the forward deck, causing a fatal injury to Captain L udlow .
He only revived sufficiently to say a few words, the last of which were,
“ Tell the Commodore I died at the post of duty.” These words proving,
as they do, the unflinching devotion of Captain L udlow , speak also very
strongly in praise of the one to whom the message was sent. The man
who can inspire another with so noble a sense of the trust and responsi­
bility committed to him, must possess great warmth of heart as well as
strength of mind.

T 1IE N A T I O N A L F I N A N C E S .
BT HON. AMASA WALKER.

Two things are alike indispensable in war, men and money. So said
the great J ulius before the Christian era, and if true then, how much
more so now.
The expenses o f war increase as civilization and the arts advance, and,
as these are rapidly progressing, so are the expenditures incident to war.
An old line-of-battle-ship, such as those with which N elson fought at the
Nile, cost a hundred thousand pounds, but a “ Warrior,” a modern iron­
clad, requires a million sterling. A forty-eight pounder was once a
formidable gun, but now we talk familiarly of shot weighing half a ton.
In time of peace, a standing army costs one thousand dollars per man
annually ; in time of war, vastly more.
Such being the case, the finances of a nation become a matter equal in
interest to that of its military force. The two cannot be separated ; the
latter is dependent on the former. You may, indeed, have money with­
out men, but cannot have men without money. To every one who can
comprehend the condition of our national finances at the present time,
they become a matter of greater anxiety than the military resources of
the government.
Our finances are depressed ; from what cause ?
They ought to be restored ; in what way ?
These two questions we propose to answer.
That the finances are depressed, cannot be a matter o f dispute. The
price of gold at the time of writing this is quoted at 240. One thousand
dollars in gold will purchase $2,400 o f United States bonds bearing in­




23

The National Finances.

1805.]

terest at six per cent, payable in coin. This is sufficient evidence of the
great depression of the public stocks.
In examining into the causes of this extraordinary depression we shall
endeavor to speak plainly. Deception is not patriotism, and the good of
the country does not require false statements, or specious arguments. It
is true of a nation as of an individual, that nothing is gained by self de­
lusion. The individual who finds himself embarrassed, if he is a wise
man, will look carefully into his affairs, and ascertain, as near as possible,
just how he stands. He will exercise the utmost scrutiny to know the
best and worst of his condition. He will not hesitate, or fear to do this.
Just so should it be in regard to national difficulties.
In order to accomplish the object proposed it will be necessary to give
a brief history of our financial operations since the commencement of the
war.
Many false statements have been made in regard to the condition of
the Treasury at the time Mr. C hase came into office. It has been said
that the country was then in a very flourishing condition, “ the Treasury
well supplied, the national revenue abundant.” All this is untrue. The
national Treasury was empty. It had been robbed. It was deranged in
all its departments. There was no adequate system o f taxation, and the
revenue from customs had been almost annihilated. The six per cent
stocks were sold as low as 83 cents; five per cent at 75 cents. The pub­
lic debt was 1100,000,000.
And yet under these circumstances, a fearful avalanche of expenditure
was hurled upon the Treasury. An army of 500,000 men was to be
raised, armed, equipt, and supported. No financier in all history ever had
such responsibilities to meet as Secretary C hase . The labors that de­
volved upon a C olbert, N eckar , C arnot , 'or P itt , were light compared
with those of the American Minister of Finance.
No public man in the nation practically unacquainted with the laws of
currency and finance, was perhaps better qualified to meet the crisis than
Mr. C hase . His character and antecedents inspired universal confidence,
and his personal appearance and bearing were in the highest degree favor­
able to the successful discharge of the duties that devolved upon him.
TH E

B A N K S L O A N T H E IR W H O L E

C A P IT A L TO

TH E

G O V E R N M E N T.

But under such depressing and difficult circumstances, what could the
Secretary do ? As there was no money in the Treasury he must go abroad
and get it. He went to the banks of the three great commercial cities.
W here else could he g o ? The banks responded in the most prompt and
patriotic manner. Their generous conduct ought never to be forgotten.
They loaned $50,000,000, and when that was gone $150,000,000 more—
finally, indeed, they loaned all their capital to the Government; for the
next annual returns will doubtless show that the banks of the loyal States
hold a larger amount of stocks than their aggregate capital; not that every
bank has loaned all its capital in this way, but some have loaned much
more, so that in the aggregate, we doubt not it is strictly true, that the
banks hold a greater amount o f governmental securities than the sura total
of their capital stock.
But all this amount, so liberally furnished, was but a small part o f what




24

The National Finances.

[January,

was needful to meet the demand o f the war, and by authority o f Con­
gress, Treasury notes (greenbacks) were issued. In this manner matters
went on quite comfortably until the last day of 1861, when the Govern­
ment and banks suspended specie payment.
MS. CHASE UNJUSTLY CENSURED.

Blame has been thrown upon Mr. C hase for this suspension, but quite
unjustly. That he might by some arrangement with the banks, in regard
to the circulation of their notes, have postponed the suspension for a short
time, we do not doubt; but it could not have been long avoided,
Mr. C hase had a broken down currency to start with. The banks of the
United States on the 1st of January, 1861, had $459,000,000 o f imme­
diate indebtedness, while they held but $87,000,000 of specie, equal to
but 19 cents on the dollar. How was it possible to go through a great
war with a currency of so little strength ? It could not be done. Sus­
pension was inevitable.
The Government and banks having stopped specie payments, a new
state of things was inaugurated. A t first the banks contracted their en­
gagements, in view of a speedy resumption, but the Government went on
issuing its notes, as it was obliged to do, and it soon became evident that
no resumption would take place. The banks, therefore, changed their
policy, and increased their own issues.
R IS E

O F PR E M IU M

ON G OLD .

»
The currency o f course was expanded, and in a short time, say in about
two months, there began to be a small premium on gold. In June it had
advanced to
per cent, and from that time rose rapidly. The Govern
ment continued to issue greenbacks to meet the pressing exigencies of the
nation, the banks issued their notes to increase their dividends, and be­
tween them both, on the 1st day of December, 1862, they had carried
the premium up to 33^ per cent.
This was an alarming state o f things. All who could appreciate the
condition of the currency felt it to be so. An important crisis had ar­
rived, and it was as certain as anything could be, that the financial policy
o f the Government must be changed, or national insolvency would ulti­
mately be the consequence.
CO N GRESS

A S SE M B LE S.

This was perhaps the gloomiest hour o f the great struggle. Every
thing seemed adverse to the national cause, and its best friends were des­
pondent. Congress assembled. The members felt the solemnity of the
crisis, and the majority were ready to do anything which the Secretary of
the Treasury should recommend. Bold and efficient measures were in­
dispensable, and had such been brought forward by Mr. C hase , they would
have been carried, for there was no lack of confidence in the Secretary, or
want of cordiality between the different branches of the Government.
Up to this point the management of Mr. C hase had secured as much
success as could reasonably have been expected. He had used a feeble
and defective bank currency wisely, and had issued the Government notes
only as the most imperative necessity required. But this course could be




1865.]

The National Finances.

25

safely pursued no longer. The frightful premium on gold of 33£ per cent
was an unmistakeable indication, that although he had been able to fur­
nish thus far the funds required to carry on the war, it was a temporizing
policy which should no longer be followed. Unless the rise in the price
of gold, and o f course of all other commodities, could be arrested, the
Government would grow weaker and weaker.
The credit o f every Government is more or less depressed in time of
war. It has always been, and always must be so. The expenditures are
vast, the consumption of capital rapid, the duration of the contest always
uncertain, the fortune of war constantly varying, and the final results
wholly unknown. It is not possible that public credit should be unaffec­
ted by such adverse circumstances. And this must be especially true of
a Government suddenly plunged into the most fearful conflict in human
history. The wonder is not that the credit of the nation suffered so much,
but that it suffered so little— that the capitalists of the country responded
so cheerfully and heartily.
Had the bank currency of the country been reliable at the commence­
ment of the war, it might have been kept so without difficulty, and there
would, o f course, have been no premium on gold. The prices o f all com ­
modities being determined by a correct standard, the national expendi­
tures would have been«!essened, and whatever of depreciation there really
was in the national credit, would have shown itself in the discount at
which Government bonds would have been negotiated.
TH E

G O LD PR E M IU M

H AS TW O

E L E M E N T S.

But it was far otherwise, and a heavy premium on gold and correspond­
ing rise in prices were the necessary consequence. It is important to
understand that this premium on gold, so irresistable in its influence, in
the present case, is composed o f two elements ; first, that which arises from
a redundant currency ; secondly, that which comes from the depreciation
of the public credit incident to a state o f war. But from whichever cause
it may arise, its effects upon the national finances are equally unfavorable.
These effects we must notice.
EFFECTS

OF

T H IS

P R E M IU M .

1st. Effect on prices. A ll commodities advance in price as the standard
by which they are measured declines in value. When it requires two and
a-half dollars of the currency to purchase one dollar in gold all commo­
dities will advance in proportion-—that is two and a-half times above their
natural price.
2d. Effect on governmental expenditures. These are increased in the
same proportion, and the Treasury is therefore obliged to disburse twice
and a-half as much as would be required if its purchases were made with
a currency equivalent to gold— that is, with a sound or convertible cur­
rency.
3d. The effect on the national debt. That is growing twice and a-half
as fast as it would be if the standard were gold instead of paper, or mere
credit. Debt to the amount of one dollar is created for every 40 cents
of value received by the Government— certainly a wasteful mode o f con­
ducting the most stupendous war the world has ever seen.
V O L . l i i .— n o . i .




2

26

[January,

The National Finances.

4th. The effect on labor. The wages of the laborer are not raised as
much as the commodities which he consumes. W ages are higher than
they would be under a value currency, but not as high in proportion as
all articles of commerce. W h y is this ? For the reason that for all
commodities there is both an actual and a speculative demand, while for
labor there is only the actual demand. The speculative demand always
enhances the price of property, but the wages of labor cannot be bought
up and held like flour or coffee for a rise, and, therefore, it is that the la­
borer is certain to suffer from any inflation of the currency which indu­
ces speculation.
5th. Effect on imports. A redundant currency always increases im­
portation, especially of luxuries, and causes a demand for gold for expor­
tation. It is commonly supposed that importations are greatly influenced
by tariffs ; but the statistics o f the national Treasury show indisputably
that importations are governed by the currency. The larger the volume
of the currency the greater the amount of foreign imports. Nothing is
more certain than the operation o f this law.
6th. The effect on speculation. As we have already intimated, a re­
dundant currency induces speculative operations, and these become wild
and extravagant as the quantity becomes excessive. It is a certain and
inevitable consequence which cannot be avoided. * It has always been,
and always will be so. It is an effect. Many persons denounce specula­
tion and the speculator, but that is entirely idle. The thing to be de­
nounced is the cause. Every man and woman, in every sphere of life,
may, and in fact, does speculate.
When prices were constantly rising from day to day, and the prudent
housewife sent to the grocery for five pounds of tea instead of one, because
“ every thing is rising,” she speculated as truly as the grocer who pur­
chased fifty chests of tea instead of ten, for the same reason. Under
such great excitement as a vast inflation of the currency causes, it may
be literally said, that speculation is universal, and its effects highly pre­
judicial to the public morals and public interest; but remove the cause,
and you remove the evil. Preserve a sound currency and speculative
gambling will be almost unknown. With these remarks upon the effects
of a premium on gold we return to our review of the national finances,
and would recal the condition of things on the 1st day of December, 1862,
when the 37th Congress assembled for its last session.
W H A T TH E S E C R E T A R Y AS K E D

FOR.

As we have before said, it was a dark hour in our history, and it was
evident to all who could understand the signs o f the times, that the finan­
cial policy of the Government should be greatly changed.
The first object should have been reduce the currency, and bring back
gold to par. This was a sine qua non ; yet the Secretary had no propo­
sal of the kind to make, but in the bill <l to provide ways and means for
the support of the Government,” he wished for loans, Treasury notes on
interest, Treasury notes not on interest (greenbacks,) fractional currency,
and subsequently, for a system of National Banks.
LO AN S

GRAN TED.

The bill was debated through the session, but finally loans to the amount




The National Finances.

Tl

of $900,000,000, 10-40 coupons, 6 per cent, payable in coin were author­
ized. This was well. Coin had been previously given for interest, and
it was not practicable then, perhaps, to change the policy, but it was
nevertheless a mistaken one at the outset. The Government should never
have recognized any difference between its own notes and specie. Green­
backs should have been sufficiently good for all purposes, for the soldier
and the capitalist, the importer and the manufacturer.
T R E A S U R Y N OTES.

Another proposition was for $300,000,000 o f Treasury notes o f ten
dollars and upwards, bearing interest, payable semi-annually in coin at
the rate of one and a-half cent per day, or 5.47 per annum.
When this measure was brought forward it was objected by a member
from Massachusetts, that the rate of interest was an unusual one, to which
the people were not accustomed, and was less than the common rate, and
therefore would not be satisfactory ; that the interest was payable semi­
annually, which, on small notes, would be inconvenient and expensive;
was payable in coin when it should be payable in lawful money.
CO M PO U N D

IN T E R E ST N O T E S

PROPOSED.

Instead of this, the objector proposed—
1st. That the notes should be issued payable in three years, principal
and interest.
2d. That they should bear six per cent compound interest.
3d. That principal and interest should be paid in lawful money.
4th. That interest for each six months should be computed and en­
graved on the back of each note.
5th. That they should be paid out to contractors, soldiers, officers, and
other creditors of the Government, so that they might secure a
wide diffusion.
If these notes were so issued, it was argued that they would be hoarded;
that they would inflate the currency but little, if any, as they would be
laid by for investment by all who could afford to keep them, and thus be
demonetized ; that such notes were precisely what all persons having trust
‘funds, like executors, guardians, trustees, etc., would wish to obtain and
hold ; that they would be especially acceptable to savings banks, who by
retaining these notes would be drawing compound interest, and yet be
ready at any moment to meet such calls as might be made for their de­
posits ; that they would, in short, constitute a popular loan to the Govern­
ment, and thus aid the national Treasury ; while at the same time millions
of people would thus become personally interested in the stability of the
public finances— a matter o f no small moment in a time o f great distress
and embarrassment; and lastly, that they would not interfere with any
other Government loan.
The bill was recommitted, and finally reported with authority to issue
$400,000,000 of Treasury notes of $10 and upwards, at a rate not ex­
ceeding six per cent, payable not exceeding three years.
M O R E G R E E N B A C K S A U T H O R IZ E D .

In the same bill authority was given to issue $150,000,000 o f Treasury




28

[January,

The Nationnl Finances.

notes without interest, (greenbacks,) and $50,000,000 o f fractional cur­
rency. The act was approved March 3, 1863.
Besides this, Mr. C hase had on hand some $300,000,000 o f 5-20’s pre­
viously authorized, making in all, $1,200,000,000.
Such, however, had been the delay of Congress in acting upon the
finance bill, such the expansion o f the currency in the meantime, and such
the discouraging aspect of military affairs, that gold on the day o f the
adjournment was at a premium of 65 per cent.
How did the Secretary use the vast power placed in his hands by the
national Legislature ? The ample provisions, which, despite a violent op­
position had been made by Congress, inspired confidence amongst capi­
talists, and the 5-20 bonds sold rapidly. They became more popular
from week to week, until the subscriptions amounted to two or three mil­
lions per day.
These sales reduced the circulation, as they were made for greenbacks,
and gold rapidly declined to about 40 per cent. The victories o f Gettys­
burg and Vicksburg, which took place about the 4th o f July, gave addi­
tional impetus to the fall of gold, and it went down to 23^- during that
month.
,
TH E

10-40’s

ISSU ED A T F IV E

PER

C E N T.

The condition and prospect o f the Treasury was now encouraging, and
it seemed only necessary that Mr. C hase should go forward in the same
direction to secure all the funds the Government required. The 10-40
bonds were even more desirable, if issued at 6 per cent, as the Secretary
was authorized to issue them, than the 5-20’s. If promptly put into mar­
ket they would have sold as rapidly. But Mr. C hase seems to have sup­
posed that the 5-20’s having sold so well, he could issue the 10-40’s at
five per cent, and thus make a large saving to the Government; and he
accordingly fixed the rate of interest at five per cent. This proved, as all
shrewd financiers expected, a great mistake. The demand for bonds fell
off at once from two millions to two hundred thousand per day, notwith­
standing they were widely advertised. But this was not all, nor the worst
of the matter. By issuing these bonds at five per cent instead of six, the
Secretary virtually depreciated his own currency by the difference, be­
cause it required 1.20 in greenbacks to purchase an equal income or in­
terest on five per cent, which 1.00 would purchase on bonds bearing interest
at six. Consequently the price of gold was thereby raised 20 per cent,
and of course the price of all the Government must purchase to carry on
the war. The economical intention of the Secretary proved a most uneco­
nomical operation for the country. The popular current seemed to be
running strongly in favor of the Government credit while the sale of the
5-20’s was going on, but the 10-40’s offered at five per cent changed the
face of affairs, and the current set strongly in the opposite direction.
ISSU E

O F TREASU RY

N OTES ON IN T E R E ST .

But there was still another way in which the Secretary might have
greatly reduced the premium on gold.
He was authorized to issue $400,000,000 of Treasury notes at not ex­
ceeding six per cent, as before stated, and it was expected that he would




I 860.]

99

The National Finances.

make them at six per cent compound interest, and o f suitable size for cir­
culation as had been proposed in Congress. But he did no such thing.
He first issued $50,000,000 at five per cent on two years, $50 notes and
upwards. These, all or mostly, went into the banks in Philadelphia, Hew
York, and Boston, where they displaced and drove out into circulation
$50,000,000 of currency. This, instead o f benefitting the Government,
absolutely made matters worse, and carried the gold premium still higher.
The Secretary then made the experiment of issuing $150,000,000 of five
per cents, for two years, with coupons attached, but under the strange
restriction, that the coupons should not be cut off, except by an officer of
Government! These, too, to a great extent, went into the banks, and
operated to expand the currency and carry up the premium on gold. So
that notwithstanding the success of the war, it went up to 98 on the 15th
o f June last.
TH E

GOLD

B IL L .

And now came the erowning folly of financial legislation.
Congress, as it is understood, at the instance of the Secretary o f the
Treasury passed an act “ prohibiting the sale o f gold in certain cases.”
The measure was utterly absurd, and produced an effect precisely oppo­
site to that intended. The price o f gold advanced more rapidly than
ever before, and went up to the extreme rate o f 285. All confidence in
the actual market value was destroyed, and speculation became more rife
than ever.
Alarmed at the results of its own folly, Congress repealed the obnoxious
act, and gold again receded. The victories o f G rant, S herman , and
S heridan , which soon followed, carried the price down to about 200, from
which point it has risen to its present rate.
Such is a brief outline of the financial operations of the national
Treasury. The results are now before us, and the question presents itse'lf,
whether a different course from that pursued might not have been adopted
with great advantage to the country, and whether even now such a course
should not be attempted.
W H A T M IG H T H A V E

BEEN

DONE.

Suppose that instead of the plan pursued by Secretary C hase , he had
issued his 10-40 bonds promptly at six per cent. They would certainly
have met with a ready sale, and he would have been able still further to
reduce the circulating medium, and, consequently, the premium on gold,
and besides would have furnished himself abundantly with funds. But it
may be said that the Secretary eould not have carried out this reduction
■of the currency with entire success, because, as he withdrew the green­
backs, the banks would push out their notes. True, and hence the neces­
sity of such legislation by Congress as should have effectually prevented
this. But the experiment showed that the reduction of the currency
lowered the 'gold premium, and that if it could have been fully carried out
gold might have been brought to par.
C O M PO U N D

IN T E R E ST N O T E S

SH OULD

H AVE

BEEN

ISSU E D .

Suppose again, that as soon as Congress adjourned the 4th o f March,




30

The National Finances.

[January,

1863, the Secretary had set about the work of preparing his six per cent
compound interest notes, and issued them as he might have done, in a
few months. They would have been readily received, and as readily hoarded.
Instead of this he never issued a dollar of this kind of notes until June,
1864, fifteen months after he was authorized, and just before he left office,
when he only put out a few millions.
The manner in which they were received, and their immediate disap­
pearance from circulation satisfied everybody o f the desirableness o f this
kind of Government notes, and Mr. F e s s e n d e n , the new Secretary, has
since issued them, we believe, exclusively, (so far and so fast as he was able,)
and at present there are some $160,000,000 or morein the hands of the people.
They have been paid off to soldiers and other creditors o f the Govern­
ment, and, as was confidently predicted, immediately hoarded by those
who have the ability and disposition to lay them by, as a safe and most
convenient investment. They thus become a three years loan to the
Government.
If these three measures had been adopted, (and they were perfectly
feasible,) is it not quite clear that such a depressed condition o f our na­
tional finances as we now witness, would never have existed ? That gold
would have been brought down nearly to par? If so, then is it not
equally clear that what we now suffer from the depreciation of our cur­
rency, and the low value of our national stocks, is owing to mistakes and
blunders ?
The value of our stocks is low, not so much because the ability o f the
nation to discharge all its indebtedness, or the disposition of the people
to sustain the Government, is doubted, but that owing to our mistaken
management, a redundant currency has been allowed to accumulate in the
country, until the standard of value is so reduced that our stocks actually
bring only 40 or 50 cents on the dollar.
W HAT

IS TH E RE M E D Y ?

First. The currency must be reduced until prices are restored to some­
thing like their natural rate, and gold goes down to par.
It is in vain to hope for any reform or essential improvement until this
is done.
I f it be said that this cannot be accomplished, then the finances cannot
be saved. But it is not true that this cannot be done. Intelligence and
determination on the part of Congress, and efficiency and perseverance
on the part of the Secretary of the Treasury, are all that is required even
now, low as the public stocks have fallen, to retrieve the national credit and
restore the finances.
TH E

BANK

C U R R E N C Y MUST B E

W IT H D R A W N .

That the undertaking is an arduous one we shall not deny. There are
now some 1,500 banks competing with the Government in issuing cur­
rency. This competition neither the Government or the people can stand
much longer. The nation must have the advantage of its entire credit
to carry on the war. O f all forms o f credit, that in the shape of currency
is the most available, and used only to a reasonable extent, the most
profitable.




1865.]

31

The National Finances.

The bank currency of the nation, at the present time, reckoning the cir­
culation at $250,000,000, and the deposits at $450,000,000, is $700,000,000.
The country does not need a dollar o f that circulation. There are
$457,000,000 of greenbacks, besides fractional currency, and these are all
that the country needs, all it can possibly bear, and preserve the standard
of value. Every dollar, therefore, put in circulation by the banks, inflicts
injury upon the nation, and goes to break down our finances and weaken
the Government. The bank circulation, at the present time, is a public
nuisance that must be abated.
Such being the case, it becomes the imperative duty o f Congress to im ­
pose a severe tax upon the circulation of the banks. Probably a three
per cent tax for the first six months, and five per cent for the next, with
prohibition after twelve months, would be found entirely effective. This
would cause a gradual withdrawal of all bank circulation, and the Govern­
ment currency would form the only circulating medium. This would be
ample, and upon it the people would gain the entire interest. This cur­
rency the Government might enlarge or diminish from time to time, ac­
cording to the wants of trade.
If this be so, why should not the reform be at once commenced, aud
continued until the desired object be attained ?
W hat objection can there be to such a course o f proceeding ?
W IL L TH IS D E ST R O Y TH E

BANKS ?

W ill it be said that such taxation must destroy the banks? Not at all.
Not a dollar of their capital will be touched ; they will still possess every
light and privilege attached to banking, exeept the assumed right of
manufacturing currency, a right that belongs exclusively to the Govern­
ment of the country. W ill it be said that it will prevent them from
making fair dividends ? That cannot be true, for the capital o f all the
banks, of whatever kind, is invested in Government stocks, and upon them
the banks draw six per cent annually in coin ; they also have their deposits
o n ’ which to make loans, and thus increase their profits, besides all
they can make upon exchanges, no small source of ineome. The banks
can do as well as any other interest; as well as the farmers, mechanics,
or merchants, without swelling their profits by issuing their promises in
the form of currency, and thus injuring all classes of the community, and
weakening the Government in the hour of its distress and peril.
Do banks exist for the benefit of the country, or the country for the
benefit of the banks ! That is the primary question to be settled. But
there is, in truth, no real collision of interest if the matter be looked at in
its true light. That which is beneficial to the banks in the long run, is
equally so to the country; that which is detrimental to the one, is equally
detrimental to the other.
TH IS COURSE F O R TH E INTERESTS O F TH E

BAN KS.

O f all classes banking institutions are the most interested in having their
own notes entirely withdrawn from circulation, because they, above all
others, have the most at stake in the success of the national finances. If
the Government securities are repudiated, the banks are utterly ruined.
That they must know very well. Other interests and institutions may




32

The National Finances.

[January,

suffer much by a failure on the part of the Government, but the banks
will be annihilated. How anxious ought they to be, then, that a policy
should be adopted which shall expel all bank circulation, and thus afford
great additional strength to the Government, by reducing its expenditures
and curtailing the national debt, which at the best will be of formidable
dimensions.
B A N K STO C K H O LD E RS.

N o far seeing stockholder can desire that the present inflation o f the
currency should continue, much less that it should be carried farther; for
he must see that if this is done, final bankruptcy and repudiation are
inevitable.
There is still another reason why a bank stockholder, who understands
the nature of currency and his own interests, cannot wish for an excessive
currency, and that is, that he gains nothing, hut absolutely loses by it. H e
increases his dividends to be sure, but at the same time raises the price o f
every thing he has occasion to purchase. That this is very bad economy
may be seen by the following illustration:
A has an income from various sources o f........................................
I ’rom bank stock.. . . .......................................................................

$5,000
1,000

Whole income.........................................................................

$6,000

In consequence of an increase of circulation by the banks he gets an
increase o f $500 in his dividends, making his income $6,500. But prices
of all commodities have advanced 25 per cent in consequence. What he
could have bought for $6,000 he must now pay $7,500 for. So he has
lost $1,000 by the operation!
There is nothing imaginary or ficti­
tious in this statement of the case. It is a plain matter of fact
that any person can appreciate who will give a little consideration
to the subject. It is very strikingly illustrated at the present time, when
incomes for the purchase o f commodities have scarcely half their former
value; and it is ever true, that those who receive dividends from bank
stock always suffer when those dividends are increased by inflating the
currency. It is a law from which none can escape, and the holders o f
bank stock, for their own interest, should be utterly opposed to such in­
flation.
F-if" Therefore, the proposition we now insist upon, that all banknotes
shall be withdrawn from circulation, is one that, so far from being injuri­
ous, will be absolutely beneficial to those who hold bank stocks.
It may perhaps be said, that after all no legislation is needed on this
point, because the banks already have the power to call in their issues if
they see fit. True they have the power, but will they universally have
the disposition to do so ? A few o f the more enlightened bank managers
are quite ready for the movement, but can they secure concerted and
unanimous action ? That is not to be expected, and hence the action o f
Congress is indispensable.
N A T IO N A L B A N K S IN C L U D E D .

But it may be inquired, perhaps with some surprise, whether we intend
to say that the currency of the National Banks shall share the fate of that




1865.]

The National Finances.

33

of the State Banks, and be expelled from circulation ? W e answer, Yes
we mean just that. But it may be asked, was not the National Bank sys­
tem a special pet of the late Secretary, and did he not insist upon it as
essential to his financial system? Certainly. But on what ground are
the National Banks to be favored at the expense o f the Government and
the peril of the national finances? They, like State banks, exist for the
benefit of the public, and are to be maintained and cherished only so long
as they answer that end. The last section o f the act by which they were
established, says, “ Congress may at any time amend, alter, or repeal this
act.” The banks accepted their charters under this condition, and with­
out it the bill never could have become a law, for a large majority of both
houses had little confidence in the measure, and voted for it mainly be­
cause it was so strongly urged by the Secretary. A full majority o f Con­
gress never gave their sanction to it. In the Senate, the vote was 23 to
21, and 4 absent. In the house, 77 to 64, and 38 absent.
As a measure o f finance the National Bank system was of slight im­
portance. It was urged in behalf of it, that a large demand would be
made for the bonds of the Government, but such was not the case. Exist­
ing banks, having their capital already in stocks, had no occasion to pur­
chase in order to come into the new system, and when new banks were
got up, it was generally by those who were already holders of Govern­
ment bonds.
As financial agents there was no necessity for these banks, because the
State banks could act as such efficiently, and as they held Government
bonds so largely, could give all the security required, and would have been
happy to do so. As a measure of finance, there was really no occasion
for the creation of a new banking system.
national banks , w hy preferable .

But as a currency measure, although it was no suitable time to inaugu­
rate a new system, it may certainly be regarded as a decided improvement
upon the old for several reasons.
1. Because all notes issued under it are permanently secured, so far as
a Government guarantee oan do it.
2. Because the notes will be universally current, and as far as possible,
under a credit currency, will equalize exchanges.
3. Because it brings the currency under national legislation and control,
where it ever ought to be.
4. Identifies the interests o f our monied institutions with the credit o f
the national Government, aud in so far adds to the stability of
both.
For these reasons the system may be justly regarded with more favor
than that which it is designed to supersede, and there need to be no in­
terference with it, except with the issue of its promises, or credit, as cur­
rency. That, under any circumstances, no banks ought ever to do, and
under present circumstances, when to do it is in the highest degree to in­
jure the national finances and absolutely endanger the public safety, they
ought to be prohibited from it entirely, and rely upon legitimate business
for their profits. If such profits, together with the interest in coin which
they receive upon their Government bonds, are not sufficient to enable




34

The National Finances.

[January,

them to make satisfactory dividends, it is clearly not for the interest o f
the public that they should exist at all.
BU SIN ESS M EN , H O W

AFFECTED.

But it may be urged as an objection to any curtailment o f bank circu­
lation, that business men will thereby bo deprived of their accustomed an
necessary accommodation in the way o f loans.
There is no force in this objection when the circumstances of the case
are carefully examined. The banks, we have already shown, have no capital
to loan, having already parted with that to the Government. They have
nothing but their own credit in the shape of currency. If their currency
be withdrawn prices will be so reduced that business men will need only
half what they now do, and money will be as plenty with them as ever.
Speculators will suffer, but no other class. Their vocation will be ended,
and legitimate capital will be employed for legitimate purposes.
W e know it may be said, there will be a loss upon stocks on hand if
prices are brought down. True, and so there will be whenever we return
to a sound currency. The sooner we come to that the better. The longer
it is postponed, the worse will it be for all.
TH E F A V O R A B L E

MOMENT.

There never was a time in the whole history o f the nation when busi­
ness men had so little necessary connection with the banks. They do not
themselves give credit, and they have little occasion to ask credit o f the
banks. The circulation of the banks merely inflates prices and excites
speculation. That fact is well known to all concerned with business and
banking, and the gradual withdrawal of bank notes, as proposed, would
not only not be injurious, but absolutely advantageous to all engaged in
every department of trade and manufacture.
M OR E

C O M PO U N D

IN T E R E ST

NOTES-

In the second place, Congress should authorize a further issue of com­
pound interest notes, and the Treasury should pay them out so long as
they continue, as at present, to be hoarded, but no longer. Whenever,
they appear in the currency, that is in circulation, no more should be issued
Until that time arrives, there is no more politic or convenient mode o f
raising funds for the Government; and a measure so eminently successful,
thus far, should be followed up till all its advantages and capabilities are
realized.
•

ONLY

ONE

K IN D

O F B O N D S.

Thirdly, Congress should authorize only one kind o f bonds, and those
six per cents, on such time as may seem most desirable, say not less than
five or more than twenty years. This should be the uniform mode of
raising money by loan. Every other description of loan should be dis­
carded. Then all at home and abroad would understand the precise char­
acter of our Government stocks, and make their arrangements accordingly.
There should be no temporary loans; no different rates of interest
founded on the expectation that the war wili soon terminate— that six or




35

The National Finances.

twelve months will be as long as the Government will need to borrow,
and therefore it may temporize. Such idle expectations have already cost
the nation millions o f money and thousands o f lives.
TH E B R IT IS H

F IN A N C E S .

The British Government, in its great struggle with N a p o l e o n , prose­
cuted the war as if it were to last forever ; met its vast demands in the
most prompt and resolute manner, imposing the heaviest taxation possible,
and negotiating its loans on the best terms it could.
The discount or loss upon the sale of its bonds, from 1793 to 1815, was
more than 40 per cent, yet the sacrifice was cheerfully submitted to, though
in the aggregate it amounted to $1,350,000,000, a sum equal to more
than one-half of our whole national debt at the present time! But by
this bold and decisive action, the finances o f the nation were maintained,
and England secured her grandest triumph.
If we would have a like success, we must imitate her example. Our sys­
tem of internal taxation must not only be kept up, but every effort made
to increase it. The revenue must be carefully watched, and every oppor­
tunity to enlarge it must be promptly improved, whether by excise, cus­
tom house duties, or direct taxation.
PR E M IU M

ON

G OLD

NOT DEPEN D AN T

ON

M IL IT A R Y

SU CC ESS.

Again, we should not delude ourselves with the false idea that if we
have great military successes the premium on gold will disappear. This
is a popular delusion, which has already given rise to many temporary and
wasteful expedients. The premium on gold will not be permanently affec­
ted by any military acheivments whatever. I f G r a n t should capture the
rebel capital, and S h e r m a n march his troops to the Atlantic, or the Gulf
of Mexico, the quantity o f currency will not thereby be changed, and there­
fore the premium on gold will remain essentially unaltered. Even were
peace to come within sixty days, the price of gold could not, until the
currency was reduced, go down to par.
attem pts

to

in f l u e n c e

it

.

And here we would say that no attempts to influence the price of gold
should be made by combinations formed for that purpose, or by govern­
mental action. Such has hitherto been the case on more than one occa­
sion. The newspaper press has done its utmost to “ bear” down the
premium on gold. All such efforts are very far from indicating an en­
lightened patriotism, however well intended.
They produce no good result nor any permanent effect, but they do
greatly interfere with the trade and industry o f the country. For example,
a great effort was made during the month of September last to bring down
the price of gold. On the second o f the month it stood at 154, on the
5th of October at 88. A tremendous panic was created mostly by politi­
cians through the newspapers, and the public was made to believe that
gold was going down to par, or nearly so. Business men were greatly
alarmed, and many sold off their stocks at an enormous sacrifice, because
they believed that gold certainly would decline until it readied par value,
and of course every species of merchandise would follow gold. So they




The National Finances.

36

[January)

sold out at whatever they could get. But all this was a perfectly sense­
less panic, without the slightest foundation; and therefore, despite of all
these efforts, gold went up back to its former average price, and has fluc­
tuated mostly between 210 and 240— which is probably about its actual
value as compared with the present currency o f the country, by which it
is measured. Great injury was inflicted upon innocent parties.
N O B O D Y B E N E F IT E D .

It may be said we are aware that what the manufacturers, importers,
and dealers thus lost, the people, the consumers, gained. That, in the long
run, is not true ; for such a panic destroys confidence and interrupts busi­
ness. Men feel that they are not safe in making operations, and hence
the industry of the country is paralized, and production is lessened.
The country, as a whole, is not benefited by any such movement
as that refered to. Gold should be allowed to rise or fall by the laws
o f value, and not by any extraneous efforts made for that purpose.
W HAT

B U SIN ESS M EN

SH OU LD D O .

If the matter were well understood by business men, they would pay
no attention to the hue and cry raised about the premium on gold, but go
straight forward in their operations with entire confidence, that until the
quantity of currency is reduced by the action o f Government no essential
change can take place. Gold may advance from where it now is, and
probably will, but it cannot permanently recede, except in the contingency
mentioned, that is, by the action o f Government.
As a matter of fact, there has been no safer time to do business, for
many months, than the present. If Congress should take measures to re­
store the currency, it will be a gradual movement o f which all will be
apprized, and can govern themselves accordingly. The true standard might,
in that way, be restored, with as little loss and injustice as the nature of
the case will admit.
A

C H E ERF U L V IE W

O F TH E

M A T TE R .

I f the foregoing considerations in regard to the past history and pre­
sent condition of the finances and currency o f the country are correct,
then it will follow that the depression and derangement we suffer, are not
the result of any want o f ability or disposition on the part of the people
to sustain the Government in its great struggle, but only to the mistakes
o f those to whom the management of its affairs have been entrusted.
This is a most cheering view o f the case, because if our difficulties are
owing to errors in legislation and financial mismanagement, then, if those
errors are rectified, the finances may be restored.
W e have endeavored to show that this may be done, that Congress may
re-establish a sound standard of value, negotiate the public securities upon
that basis, and thus greatly reduce public expenditures, and prevent an
unwarrantable increase o f the national debt.
TH E

N A T IO N A L D E B T .

But it may be said that we shall after all be left, when the war is closed,
with a great debt. True, and it will be a national incumbrance which




1865.]

37

The National Finances.

every sensible man must deplore. It is no blessing, as some would fain
make the people believe, but will be to the nation what a heavy mortgage
is upon an individual estate. The only question is, will that burden be so
great as to bear with oppressive weight upon the people ? So large as to
retard their industry, interfere with the natural increase o f population, put
a stop to immigration, and consume the capital o f the nation ? Not at
all. Nothing like it. Wisely managed, it can be easily borne, aye more,
it can be paid off in thirty years without difficulty. There is not the
slightest occasion to fear repudiation from inability to discharge the debt.
Our debt will be less per capita than that of England, while our ability
to sustain taxation is practically twice as great as hers. No people ever
had so large a margain, over and above their necessary expenditures, out
of which to pay taxes, as the people.of the United States. But our present
population are not alone to pay the debt. That will be done by a greatly
augmented population. Nor is the debt always to bear six per cent in­
terest. As fast as it becomes payable, as most of it will, at the pleasure
of the Government, in five or ten years, the new 16ans will be had at not
exceeding four-and-a-half per cent. Let the credit o f the Government be
established as firmly as prior to the war, and its bonds at four-and-a-half
per cent would command a premium. This we shall readily believe, if
we consider that they are exempt from taxation, which is equal to one jier
cent annually at least. That would reduce them to five per cent.
Our stocks of every description will eventually be consolidated into one
having a uniform rate of interest, and then American “ consols” will be
in general request at home and abroad for permanent investment. A large
part of our debt will eventually be held in Europe, where capital yields a
much less rate o f interest than in this country.
P R O S P E C T IV E

IN C R E A S E

OF

P O P U L A T IO N

AND

W EALTH.

If the population of the country increases in the future as in the past,
(and it assuredly will,) in 20 years we shall be 60,000,000. I f our wealth
increases in the future as heretofore, it will in the same period amount to
more than 50 billions, ($50,000,000,000,) or more than three times its
present amount. Should our public debt reach the improbable and ex­
travagant amount of four billions, ($4,000,000,000,) it would not be half
as great a burden on the people, as the debt o f England was upon her
population at the close of the wars growing out of the French Revolution
NO

R E P U D IA T IO N .

There is then, no occasion for repudiation, or danger of it, if we reform
our financial system and effectually put down the rebellion. The first the
Government ought to do, and if disposed, can do ; the latter the people
are determined shall be done.
They have resolved that the nationality shall be restored in all its in­
tegrity— that at whatever cost of blood and treasure,
“ These States shall be,
One nation, sovereign, independent, free.”

The people comprehend the great issue and are prepared to meet it.
W e have able generals who know how to fight battles and follow up




38

The Taeping Rebellion— Its Rise and Fall.

[January,

victories; men who have no fears whatever o f hurting the rebels, or de­
stroying their property, when necessary.
W e have brave and veteran troops, who instead o f being employed in
guarding rebel orchards and hen roosts, are marching in serried ranks to
those great victories and achievements which are to decide the fate o f
their country.
By the will and fiat o f a mighty people the war cannot end, or even
relax, until all who once formed the American nation shall be reunited
under one government, in one great and glorious destiny.

THE TAEPING REBELLION— ITS RISE AND FALL.
T. M. J.

The Taeping rebellion in China, which was expected to open a wide
door to increased commercial enterprise, and which, in its early stages, was
hopefully regarded by the whole Christian world, has suddenly come to
an inglorious end. The bud that promised so well has produced nothing
but bitter fruit. The mercantile community has been doomed to disap­
pointment; and the pretended Christianity of the leader o f the insurrec­
tion has resolved itself into the mad ambition o f a rebel chieftain, or, at
best, into the wild fanaticism of a crack-brained and self-deceived enthu­
siast.
Before the present race o f monarchs came into power in the East, the
old, time-honored and respected Ming dynasty filled the throne of the
Celestial Empire. This illustrious line of worthy potentates ruled, accord­
ing to the Eastern chronicle, full four hundred years, with undisputed au­
thority and power. At the end o f that time, however, which was about
two hundred years ago, their government was overthrown by the Manchu
Tartars, who drove the Chinese monarch from the throne o f his fathers,
and have from that day to this held the country and ruled it with despotic
sway. In many of the high civil positions they placed Tartar officials,
and of the 800,000 men who compose the Imperial army, at least onefourth belong to the victorious race, who, besides being paid, armed, and
disciplined in a manner superior to the native Chinamen, occupy a sepa­
rate quarter in every garrison, and always the one which commands the
to\yn. It must not be supposed, however, that the Chinese acquiesed
quietly and tamely in a foreign rule, and, bowing their heads, submitted
with patient humility to the yoke which the Tartars placed upon them.
It was by hard fighting that the conquest was achieved, and much Chinese
blood had watered the plain, before the Manchu foreigners ruled peacefully
over Cathay. In no part of the Empire was the innovation more obsti­
nately contested, and nowhere did the people struggle more fiercely for
the preservation of their ancient government, than in the two provinces
of Kwaug-tung and Kwang-si. The Kwang district is the most southern
portion o f China. It contains about twenty-seven or twenty-eight mil­
lions of people, and as it has been the last to submit, so has it always been
the first to revolt against the rule o f the newly established dynasty. It




1865.]

The Taeping Rebellion— Its Rise and Fall.

39

is a barren, mountainous district, with naked peaks, utterly devoid of
vegetation, but presenting scenery grand in the extreme. The Kwang-si
Mountains are among the curiosities of the Celestial Empire, and strange
stories are told, by native travelers, o f the wonderful things they present.
Antedeluvian animals are found encrusted with rock, and petrified in the
most curious shapes. W hole masses take the forms of animals and re­
present a cock or an elephant beyond the possibility of mistake. But
these are the stories of natives concerning regions for ages unpolluted by
the footstep of the foreigner, and require some further investigation before
we can consider their existence as established. Nevertheless, the general
aspect of Kwang-si is charming and picturesque. But the soil, being
suited only to certain kinds of cultivation, is barely able to sustain its
crowded population.
It is inhabited by a bold and hardy race,
inured to fatigue and animated by a heroic spirit of independence, and
rivers o f blood were shed, before Kwang-si submitted to be ruled by the
Manchus. Some of them in fact never submitted at all. Beaten on the
plain they would betake themselves to the mountains, and after years of
Tartar rule, we find them in their native fastnesses, as banditti or pirates,
wandering about this Eastern Switzerland, still unreduced, and acknowledg­
ing the authority of no government whatever. In these men, who con­
sidered themselves subjects of no sovereign, and who feared the violation
of no law, provided they could escape its penalty, did the armed smug­
glers of the different commercial nations find useful and willing allies.
Long before the English settled themselves at Hong-Kong were these tur­
bulent spirits roving about the country, bent only on mischief, and ready
for any wickedness that might happen to turn up. It needed but the ex­
ample of a few English smugglers, in their armed opium clippers, over­
powering the clumsy war junks of the government, which guarded
the China seas, to stimulate them to like proceedings. When no other
work presented itself, they would attack neighboring Chinese towns, and
as it made little difference to them, whom they fought, provided the opera­
tion was a paying one, they sometimes cut off their own traders and little
coasters, and were even ready, for a consideration, to turn round and assist
the Imperial Government in its efforts to destroy “ the barbarians.” This
utter defiance of all law and authority did not confine itself to the sea­
board. Far away in the interior, armed bands fought their way down to
the coast with smuggled goods. It was stated by one of the French
Homan Catholic missionaries, with how much truth we cannot say, that
at one time some six hundred of these ruffians forced their way from
Yunnan to Canton, aided by some of the most influential people of Kwangsi. The gentlemen, who afforded this timely assistance, were, naturally
enough, called to account for their action in the matter. They resisted
the authorities. The mob came to their rescue. A secret society in the
province gave a helping hand. Sedition spread like wild-fire. A ll the
disaffected, disbanded soldiers and slighted braves, ruined opium-smokers
and ruffians of every description joined in the movement, which, in the
year 1850, broke out into a rebellion, and, under the name of Taepingism,
it has for the last fourteen years spread death and devastation over some
of the fairest portions of the Celestial Empire.
Whether he is right or wrong in affirming that the rebellion arose in
such a way, it would be impossible to say; but certainly the incendiary




40

The Taeping Rebellion— Its Rise and Fall.

[January,

disposition of the people of these provinces might have served to supply
fuel, when once the flame o f anarchy had actually burst forth.
But beyond the lawless character o f the people o f Kwang-si, and the
seeds of anarchy, which were scattered over the province, there were
forces at work in the government itself, which served to invite rather than
to repress such a movement. Never was a country cursed with a worse
race of rulers, than that whieh at present directs the destinies o f China.
Each succeeding Emperor appears to have surpassed his predecessor in
every low vice, without possessing any redeeming virtue. A memorial
from a high English officer, duiing the year 1832, draws a touching pic­
ture of the results of the Emperor K iaking ’ s misrule, in alluding to the
consequent disturbances in some of the provinces. T aoukwang , his suc­
cessor, only added to the disorganization of the country, while the ad­
ministration of his grandson H ienfung, who succeeded his father T aoukw a s o , in 1851, was marked by increased peculation and general corrup­
tion. Thus disorder and rebellion spread as the natural results. W e
should remember, in this connection, that all the honors and privileges of
the Pekin government are, by law or custom, which in China is equiva­
lent to law, attainable by any one who can successfully pass through
a certain examination. This popular right is, o f course, jealously regarded
by the nation, and any tampering with the freedom o f this great arena o f
national ambition is indignantly resented. The necessities o f the court,
however, during the reign of the last three inefficient and corrupt monarehs, had led it to dispose o f certain appointments by purchase, and
consequently every disappointed candidate, tracing his failure to this abuse,
became a disorganizing agent, laboring zealously to increase the general
discontent.
A poor and venerable man, upright in all his dealings, who, like his
neighbors, earned his own living by cultivating rice and rearing pigs and
poultry, dwelt in a little village about thirty miles from Canton. He seems
to have obtained the respect of his fellow townsmen, for he held the
position of headman or elder of the village, and was accustomed to settle
the disputes of the people, and to take care of their ancestral fields. In
the year 1813, the third son was born to this old man, and his name was
H ukg-siu-tsoen. He appears to have been a remarkable child from his
very cradle, and wonderful stories are told of the progress which he made
at school. But as he signally failed every time he was examined for the
bachelor’s degree, we cannot help thinking that it was with him as with
many great men. When they have made a name for themselves, in after
life, it is suddenly discovered that they evinced the most remarkable pre­
cociousness when young. The poverty of H ung-siu-tsuen’ s family is
given as a reason why he did not attain literary pre-eminence. His paren ts,
after giving him every advantage, which their slender means would allow,
were reluctantly compelled to take him from school, that he might aid
them in providing the means of livelihood. Accordingly, at the early age
of sixteen, when his studious propensities would have led him to devote
himself eagerly to his books, he was obliged to give up his time to manual
labor, or in attending to the oxen and the pigs. As soon as he could he
abandoned this employment, and obtained a situation as teacher in the
village school, the meagre emolument he got for his services being suffi­
cient to keep him from actual want.




1865.]

The Taeping Rebellion— Its Rise and Fall.

41

H ung was his family name. He chose S iu -tsuen as his literary name.
This means “ Elegant and Perfect,” and by adopting it, he displayed the
characteristic modesty of a true Chinaman.
In the year 1833, a public examination was to be held at Canton, and
S iu -tsuen went to that city to attend it. Here he accidentally fell in with
two men, one of whom gave him a package containing nine small volumes,
entitled “ Good Words Exhorting the Age.” The person who gave it to
him was a native Christian convert and colporteur; and the books them­
selves were tracts, intended to spread the knowledge of religious truth,
but written in such a diffuse and careless manner, as to be unacceptable
to a well educated Chinese, and almost unintelligable to the masses. It
was through this illiterate channel, that S iu -tsuen received his first im­
pression of the Christian faith. In 1837 he again visited Canton, and
presented himself for examination. Utterly failing, he returned home
very much disheartened and oppressed. He was now attacked by a severe
fit of illness, which for some time confined him to his bed, and his mind
became filled with strange fancies and subject to visions.
“ In one o f his visions,” says Commander L indksay B bine , o f the English Navy,
who has given us an excellent account o f the rebellion, “ he imagined himself to be
carried away in a sedan-chair by a number of men playing musical instruments, and,
after visiting bright and luminous places, and having all his impurities washed away,
he entered, in company with a number o f virtuous, aged, and venerable men, into a
large hall, the beauty and splendor of which were beyond description. A man, ven­
erable from his years, and dressed in a black robe, was sitting in an imposing attitude,
in the highest place. As soon as he observed S iu -tsuen he began to shed tears, and
said : ‘ A ll human beings in the world are produced and sustained by me ; they eat
my food and wear my clothing, but not a single one among them has a heart to re­
member and venerate m e; what is, however, still worse, they take my gifts, and there­
with worship demons; they rebel against me and arouse my anger. Do thou not
imitate themS’ Thereupon he gave S iu -tsuen a sword, commanding him to extermin­
ate the demons, but to spare his brothers and sisters ; a seal, by which he would over­
come evil spirits; and a yellow fruit, which S iu -tsuen found sweet to the taste. He
then gives him charge to do the work of bringing round the perverse ; and taking
him out told him to look and behold the perverseness of the people upon earth.
“ S iu -tsuen looked and saw such a degree of depravity and vice that hia eyes could
not endure the sight nor his mouth express their deeds. He then awoke from his
trance, but being still partially under its influence, he put on his clothes, left his bed­
room, went into the presence of his father, and making a low bow, said: ‘ The vene­
rable old man above has commanded that all men shall turn to me, and all treasures
shall flow to me.’
“ When his father saw him come out, and heard him speak in this manner, he did
not know what to think, feeling at once jo y and fear. The sickness and visions of
S iu-tsuen continued about forty days, and in these visions he often saw a man of mid­
dle age, whom he called his Elder Brother, who instructed him how to act, accom­
panied him in his wanderings to the uttermost regions in search of evil spirits, and
assisted him in slaying and exterminating them. S iu -tsuen during his sickness, when
his mind was wandering, often used to run about his room leaping and fighting like a
soldier engaged in battle. His constant cry was, ‘ Tsan-jan, tsan-jan, tsan-ah, tsanah 1’ Slay the demons! etc., etc.”

He also took a notion into his head that he had been duly appointed
Emperor o f China, and was pleased when any one gave him that title.
His curious antics and the wild fancies, with which his brain was filled,
soon obtained for him the appelation o f the madman, by which name he
was known throughout the district.
He recovered from his illness, but his distempered imaginations still
VOL. lii .— s o . i .
3




42

The Taeping Rebellion— Its Rise and Fall.

[January,

clung to him. He considered that he had a peculiar mission, and that to
carry out the mandates of the old man he had seen in his vision, was his
one, all-important duty. He again perused the bundle o f tracts, and be­
came very much impressed with their character. He saw that they sup­
plied the key, which unlocked the mystery of his dream. They explained
to him that the old man he had seen was God, the Father o f all, and that
the man of middle age, whom he called his celestial elder brother was
Jesus, the Saviour of the world. He was, of course, transported with joy
at making this discovery, and he and his friend Li, also a schoolmaster,
and one who had become persuaded that S iu-tsuen had a divine mission,
administered baptism to themselves, which rite the tracts declared to be
absolutely essential. His next step was to discard his idols. He took
down the tablet of Confucius from the school-room, and endeavored to
make converts to the new faith, but not meeting with very great success,
and losing his place in the school on account of his heterodoxy, he moved
to the province o f Kwang-si. Here he remained for some time teaching
his doctrines and obtaining some disciples. In a short time the converts
to the new faith began to meet together for religious purposes, and became
known as the “ Society of God-Worshippers.” After remaining in Kwangsi a few months, S iu -tsuen returned home, leaving one of his converts
F ung -yun - san behind to proclaim the new doctrine. A t this time his
opposition to the Tartar dynasty is said to have commenced. He went to
Canton, where he remained some time studying Christianity under the
Rev. Mr. R oberts, a Baptist missionary, who happened to be residing in
that city. When he returned, he found the Society of God-Worshippers
in a prosperous state, and he was immediately received as their leader.
Thus far we have followed the story o f the leader of the Taepings, as
it seemed at the time, unaccompanied by the light of the subsequent facts.
Had everything been as it appeared on the surface, and as the leaders o f
the movement proclaimed it to be, there would have been great reason to
rejoice. For although S iu -tsuen’ s ideas o f Christianity were crude and
indefinite in the extreme, and in endeavoring to extend his doctrines by the
sword, and in setting himself up as an object worthy of divine adoration,
as he afterward did, he displayed a character more like that o f Mahomet,
than of a meek and humble seeker after truth, yet even this would have
been so far in advance of the miserable idolatry o f Buddhism, that we
might, with good reason, have felt glad. But even these meagre results
were not attained. Religion was merely used as a cloak to cover his
traitorous schemes, or, if his apparent zeal for Christianity ever contained
a spark of genuine honesty, it quickly gave way when brought in contact
with his inordinate ambition.
The influence of the Society of God-Worshippers must have extended
itself, by this time, to a considerable distance, for we find the members of
the Christian Union acting in connection with S iu -tsuen. The Christian
Union was the name o f a school which had been established at Hong
Kong by the Protestant missionaries. Its object was to instruct the na­
tives in gospel truth, and to prepare them to act as teachers among their
own countrymen. This excellent institution was under the charge of a
Mr. G utzlaff , who seems to have been entirely in error as to the char­
acter of the men he received. They were mostly worthless vagabonds,
pretending to be Christians for the sake of a living, and there was no trick




1635.]

The Taeping Rebellion— Its Rise and Fall.

4S

so low, or imposture so cunning, wliicli they did not commit. An instance
of this we will mention in passing. It seems to have been a part o f the
work of the Union to send these converts into the various provinces of
the Empire, for the purpose o f distributing Bibles, and o f acting the part
of native catechists and colporteurs. These Bibles were supplied by a
Chinese publisher at Hong-Kong. Somehow or other a suspicion was
excited, that these same Bibles were brought back to the missionaries by
the publisher, and were passed off by him as new ones. In order to see
whether there was any truth in this suspicion, a number of them were
secretly marked before they were sent off, and in a short time they all
came back to the office as new Bibles fresh from the press. Of course
this was immediately stopped ; but it is only a specimen of the numberless
duplicities practised, by these arrant knaves, upon the innocent-minded
missionaries.
How the God-Worshippers first came into collision with the Imperialists,
what was the particular spark which fell into this combustible mass and
caused the first explosion, is not stated; or rather, it is stated in various
ways by various journalists. Having, as they supposed, permanently es­
tablished their own religious worship, they commenced interfering with
that of their neighbors, by destroying their idols, etc. F ung -yun -san ,
was seized and placed in confinement, but was subsequently released. A
young convert and iconoclast is said to have been thrown into prison at
the instigation o f a certain enemy of the God-worshippers, and to have
died on account of the ill-treatment he received, and that this caused the
first serious collision. Then it is stated that the magistrates attempted to
seize H ung -siu -tsuen and F ung -yun -san , and that they summoned the
God-Worshippers to the rescue, and thus the rebellion commenced.
They first attacked and captured the towns o f H o and Kiang Men,
where they obtained money and supplies, and from thence they proceeded
to Tai-tsun, a large village, where they found provisions in great abund­
ance. Siu, the head of this vice-royalty, a weak and cowardly man, was
thrown into a great state o f uneasiness by the violent acts o f the insur­
gents. When he learned that they were approaching, he requested per­
mission to visit the late Emperor’s tomb, and to humble himself before it,
in order that he might escape the approaching evil ; but as this was not
considered a proper time to perform a pilgrimage, his request was refused.
He sent a body of Imperial troops against the rebels, but they being de­
ceived by the tactics of the enemy, were defeated and slaughtered with­
out mercy.
The rebels would feign a retreat, and draw the Imperial
troops into an ambuscade, and then, turning upon them, cut them to pieces.
“ A t first,” writes one o f the Imperial officials, concerning H ung -siu -tsuen
“ he conceals his strength, then he puts it forth a little, then in a greater
degree, and lastly comes out in great force.
He constantly has two vic­
tories for one defeat; for he practices the tactics of S un-pin .”
Emboldened by various successes, the insurgents ventured to leave
Kwang-si, and to penetrate into the neighboring province of Kwang-Tung
and here they issued a proclamation, which was their first political act.
It is a curious document, and displays rather crude notions of the art of
government:
“ The Manchus.” says the proclamation, “ who, for two centuries, have been the her­
editary occupants of the throne of China, were originally members o f a small foreign




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The Taeping Rebellion— Its Rise and Fall.

[January,

tribe. With the aid o f a powerful army they took possession o f our treasure, our
lands, and the government of our country ; proving that superior strength is all that
is required for the usurpation of an empire. There is, therefore, no difference between
us, who levy contributions on the villages we have taken, and the officials sent from
Pekin to collect the taxes. Taking and keeping are both fair alike. Why then, with­
out any motive, are troops marched against usl This appears to us very unjust.
How have the Manchus, who are foreigners, a right to collect the revenues of eighteen
provinces, and to appoint the officers, who oppress the people; while we, who are
Chinese, are forbidden to take a little money from the public stock ? Universal sov­
ereignty does not belong to any individual to the exclusion of all the rest, and no one
ever saw a dynasty, which could count a hundred generations of emperors. Possession
— and possession only— gives a right to govern.”

The first really great advantage obtained by the rebels, was the cap­
ture of the city of Yung-gnan, in the eastern part o f Kwang-si. The cap­
ture of this important place was effected in a manner decidedly Chinese.
The walls of the city were not very high, and the attacking party were
enabled to create confusion in the garrison within, by advancing quickly,
and throwing lighted fire-crackers into the town. The constant explosions
o f these fearful missies, at last caused the enemy to retreat, and the rebels
succeeded in scaling the walls and entering the city.
Rather a ludicrous mode of conducting a siege, according to our ideas,
and reminding us strongly of 4th of July sham-fights, but strictly in keep­
ing with the rules of Chinese warfare. The rebels seized all the treasures
of the city, put all the Imperial officers to death, who were unfortunate
enough to fall into their hands, and H ung -sig -tsuen, under the name of the
T ien -w a n g , or Heavenly King, which he had previously assumed, entered
the place in triumph, and was proclaimed Emperor of the new dynasty of
Taeping, or Great Peace. Here the T ien -w an g established his govern­
ment. He appointed four chief officers to be inferior only to himself,
giving to each the title of king. His old tried friend and comrade F ctngyun -san was the Southern k in g ; a man named Y a n g , who held the po­
sition of a prophet, was the Eastern king; S iau , a man who was in the
habit of falling into trances, and who conceived himself to speak in the
name, and under the direct inspiration of Jesus, the Celestial elder broth­
er,was the Western king; and W ie -ching , another adherent, was the North­
ern king. And besides these, the K ang -W a n g , or Shield King, formed
one of his principal officers. This man was, beyond doubt, one of the
ablest of the Taeping leaders. He had formerly, under the name of H unqjiN,been connected with the Christian Union, and was much esteemed as
an earnest catechist and preacher. His part in the drama seems to have
been to worm himself into the confidence of the missionaries, and by de­
ceiving them with regard to the quasi Christianity, which the Taepings
professed, to secure their influence in preventing “ the active operation of
the foreign powers against their material progress.”
The service, which
in this way, he rendered the rebel cause, appears to have been fully ap­
preciated by the T ien - w an g , and rewarded by an important office under
bis government. The missionaries were much pleased with the amiable
disposition, and Christian sweetness, which H ung -jin had assumed, and
it was a long time before the wolf was discovered through his double cov­
ing of sheep’s clothing. Even after he had left the Union, and become
chief officer of the self-styled King of Heaven, he was still used by the
missionaries as a channel of communication with the Taepings. Having




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The Taeping Rebellion— Its Rise and Fall.

45

displayed great skill in humbuging the foreigners, while connected with
the Union, he still continned to throw out to them the hope of extention
o f religion and the promotion of commercial interests, neither of which,
he very well knew, would ever be realized. In Nov., 1851, the T ien-W ano
issued his second proclamation, in which he stated the doctrine of his re­
ligion, and gave certain orders to his army :
“ Our Heavenly Father, the great God and supreme Lord, is one true Spirit (God)>
besides our Heavenly Father the great God and supreme Lord there is no Spirit
(God). The great God our Heavenly Father and supreme Lord is omniscent, omnipo­
tent, nd omnipresent— the supreme over all. There is not an individual who is not
produced and nourished by him. He is Shang .supreme). He is the Te (ruler). Be­
sides the great God our Heavenly Father and supreme Lord there is no one who can
be called Shang, and no one who can be called Te.
“ Therefore, from henceforth, all you soldiers and officers may designate us as your
lord, and that is a ll; you must not call me Supreme, lest you should enroach upon
the designation of our Heavenly Father. Our Heavenly Father is our Holy Father,
and our Celestial Elder Brother is our Holy Lord, the Savior of the world. Hence,
our Heavenly Father and Celestial Elder Brother alone are holy ; and from hence­
forth all you soldiers and officers may designate us as your lord, and that is a ll; but
you must not call me holy, lest you enroach upon the designation of our Heavenly
Father and Celestial Elder Brother. The great God our Heavenly Father and Su­
preme Lord is our Spiritual Father, our Ghostly Father *
*
*
* All the
kings above referred to are to be under the superintendence of the Eastern King. W e
have also issued a proclamation designating our queen as the lady of all ladies (em­
press), and our concubines as royal ladies. Respect this.”

This was comparatively modest, for be bere acknowledges himself in­
ferior to Deity, and claims no superhuman authority ; but he afterwards
ceased to be content with such an humble position, and demanded for
himself divine adoration. Mr. R oberts thus speaks o f him in Jan., 1862 :
“ His religion is of no avail in the spread of Christianity— worse than use­
less. It only amounts to a machinery for the promotion and spread of
his own political religion, making himself equal with Jesus Christ, who
with God the Father, himself and his own son, constitute one Lord over
a ll! Nor is any missionary, who will not believe in his divine appoint­
ment to this high equality, and promulgate his political religion accord­
ingly, safe among these rebels in life, servants or property. He told me,
soon after I arrived, that if I did not believe him I would perish like the
Jews did, for not believing in the Saviour.”
But to resume. The rebels now pressed on, taking one place after another,
until on the 12th Jan., 1853, they had occupied Han-yang, Wu-chang and
Hankow,three cities adjacentto each other, where they collected an immense
amount of supplies, both money and provisions. The insurrectionists had
met with almost uninterrupted success. Almost in every instance had
the Imperial troops been defeated, and the rebels victorious ; not so much
on aeeount of the skill or generalship displayed by the officers o f the Tienwang, or the valor of his men, as of the imbecility and cowardice of Srsr,
the viceroy of the two K wavo-s, and the insubordination in the Imperial
ranks. On one occasion twenty large war junks came down from the
Touaug-Kouan district, bringing a reinforcement of about 2,000 recruits.
They were as undisciplined a horde of vagabonds as ever pretended to call
themselves soldiers, and refused peremptorily to embark, unless two
months wages were paid in advance. The mandarins foolishly acceded
to this demand, and they consented to go.
With such troops it was not
strange, that victory seldom crowned the efforts of the Imperial forces.




46

The Taeping Rebellion— Its Rise and Fall.

[January,

Tbe insurgents next proceeded down the Yangtsze river to Nankin, and
took the city by assault March, 1853.
Nankin was defended by a garri­
son of 7,000 or 8,000 Manchus, and although the T ien - w an g had public­
ly declared, that their extermination was the first duty of his mission, and
they knew that neither they nor their wives nor children could expect to
receive any mercy, yet were they so overcome with fear and so fully pursuaded of the invincibility of their enemies, that they never struck a blow
in their own defence, but fell down before the leaders of the insurrection
with pitious cries of “ Spare my life, Prince 1 Spare my life, Prince 1”
It
does not appear, however, that this appeal touched the cruel heart of the
stern T ien -w a n g . The whole city was put to the sword. Only about one
hundred escaped out of a population of over twenty thousand. Men, wo­
men and children were put to death. “ W e killed them all,” was the fiend­
ish exhultation of the pityless insurgent. “ W e killed them all, to the
infant in the arms. W e left not a root to sprout from.”
Such was the
unsparing brutality by which the Taeping rule was, in a degree, establish­
ed and maintained in China.
W e have not space to narrate, even in this brief and meagre way, all
the operations of the Taepings.
Firmly established in Nankin, which
was, under the Mings, the capital of the country, they were able to
establish their jurisdiction over an immense extent of territory, and to
maintain their authority over a vast number of people. A t one time
they were said to be in possession o f sixty thousand square miles, having
a population o f 70,000,000. Of course all these were not Taepings,
neither in their sympathies nor in their actions; but as long as they lived
under the tyranny of the Taeping government, they had to acquiese in the
Taeping rule. It was thought that ninety-nine out of a hundred of the
people, over whom the Taepings held sway, had no sympathy whatever
with the movement, but that they dreaded the fate which awaited them
should they fall into the hands of the Imperialists, or feared the vengeance
of tbe T ien W a n g ’ s officers, should they be apprehended when attempting
to escape. The government of the insurgents was a most awful tyranny,
as is always the case, when ignorant and fanatical men become suddenly
possessed of power. They seemed to be actuated more by whim or fancy,
than by any principle, which could be dignified by the name of a national
policy. At one time we find them anxious to establish commercial inter­
course with the different foreign nations, at another they cut otf the head
of any man who attempted to carry on a trade.
At one time the foreign
merchants made a sort of commercial raid among them, buying whatever
they could, and bringing away their teas and silks in wheel-barrows and
hand-carts, or whatever else they could get hold of. A t another time we
find Mr. R oberts writing of the T ien W a n g as follows:— “ He is opposed
to commerce, having had more than a dozen o f his own people murdered
since I have been here, for no other crime than trading in the city, and has
promptly repelled every foreign effort to establish lawful commerce here
among them, whether inside the city or out.”
The entire absence of any kind o f plan with reference to future opera­
tions, and an absolute inability or unwillingness to provide sufficient force
to carry out any important movement, were among the striking character­
istics of the Taeping rule. It was not until the movement had comm enc­
ed and the civil war had actually burst forth with all its fury, spreading




1865.]

The Taeping Rebellion— Its Rise and Fall.

47

ruin and desolation over a thickly settled and well cultivated country, that
the leader began to study military matters at all.
Indeed he was so
ignorant of the art o f war, even according to the clumsy fashion in which
the Chinese carried it on, that he was forced to begin at the vary rudi­
ments, when he should have been leading his army to battle. One of his
chiefs, when taken prisoner, confessed that after the commencement o f
the rebellion, he had instructed the T ien -W ang in military tactics. After
the capture of Nankin, an expedition was fitted out to march upon Pekin.
It was one of the most important operations which the Taepings could
possibly undertake. It was nothing less than a strike at the very centre
of their enemy’s power— his capitol. If it succeeded, it placed the insur­
gents at once in possession o f the government, and although it might
not have been the immediate and absolute overthrow of the Imperial
dynasty, yet it would have greatly decreased the power and impor­
tance o f their rule, and have surrounded the Taepings with all
the prestige of success. If undertaken at all, it should have been under­
taken with all the force which the T ien W ang could possibly muster.
Nothing should have been neglected, which would insure victory and ward
off every possibility of defeat.
Yet how different was the fact ? A small body of men, scarcely large
enough to besiege a little unimportant town, was despatched upon this
expedition. This contemptible force was to march all the way from Nan­
kin to Pekin, overcome all the obstacles, defeat the Imperial troops, which
ventured to oppose its progress, and besiege and capture the capital of
the Chinese Empire. The thing was absurd, and it seems almost unne­
cessary to add that it resulted in complete disaster.
It seemed as if the
Taepings were merely playing with the cause thev had espoused, and were
indifferent about its success or failure.
But it was only a specimen of
the way they did things. The Heavenly Monarch appears to have made
no preparation at all, either for the revolt itself, of which he became the
head and front, or for the different operations, which the revolt forced
him to undertake. Instead of deliberately maturing his plans, and pre­
paring himself with all the means in his power, and omitting nothing to
increase the chances even o f success ; he seems to have been dragged lazi­
ly along by the current of events, and to have had littleor no regard to the
probabilities of the future; consequently, that future came upon him un­
awares ; it caught him napping, and he had to pay the penalty. It was
this feature, more than any other, which led to the final failure of his
cause. The rebellion retained its power so long more on account of the
imbecility of the Imperial government, than of any ability which the T ien W ang ever displayed.
To show the tyrannical nature of the Taeping rule, and the utter im­
possibility of any material prosperity ever resulting from its permanent
success, it is only necessary to mention one fact. When Nankin fell into
their hands, the inhabitants submitted at once to the T ien - W a n q ’ s gov• ernment. The rebels immediately seized all the crops, which belonged to
the people, and served out rations to them ; but these rations were so
scanty and insignificant as barely to sustain life. This caused such great
indignation on the part of the inhabitants, that they threathened to apply
to the Imperialists. When their murmuring came to the notice of the
insurgents, they took a bloody vengeance, and seventeen thousand victims,




48

The Taeping Rebellion— Its Rise and Fall.

[January,

fell, in one clay, to satisfy the ideas o f justice entertained by the cruel
So it was with all their acts. Wherever they went, devas­
tation and ruin were the results. Smoking villages, devastated fields,
death and destruction followed in the wake of these Apostles o f Great
Peace. Indeed it could not be otherwise. No pay was given to the sol­
diers, and they were not only allowed, but expected, and encouraged to
make it up out o f the wholesale plunder o f the country through which
they passed. It was their custom, wherever they met with the least op­
position, to destroy the adults, both men and women, but to carry of! the
children, probably to train them up in their peculiar faith.
The arrogance of the insurgents, in their intercourse with foreigners,
was extremely silly, and rendered it impossible to carry on with them any­
thing resembling international correspondence. Shortly after Nankin fell
into their hands, the Hermes, o f the English Navy, visited the city, hav­
ing Sir G eorge B onham , the governor of IIong-Kong, on board. The
Taepings seemed very willing that the English should visit them, but pro­
fessed to care little whether they aided the Imperialists or not. As they
expressed i t : “ Our Heavenly Father helps us, and no one can fight with
him.” They pretended to believe that the English had come to give in
their allegiance to the Tien Wang, and no matter how high the rank of Sir
G eorge might be, the Northern King declared that it could not possibly be
as high as his own. So it was when, a year later, the Susquehanna visited
the city. Some o f the Taeping officials came on board, and their as­
sumption o f power and dignity was ridiculous in the extreme. “ You
say you come from a great nation. That is not so. There is no na­
tion but Taeping. You call yourselves officers. It is all a mistake—
if you had commissiors from the T ien -W a n g , then you would be.”
With such a people it would, of course, be impossible to establish any
diplomatic intercourse.
Nankin continued to be the residence of the T ien - W ang , and the
seat of his government, as long as the Empire of Great Peace was
able to exist. It fell into the hands of the Imperialists on the 19th
of last July, and with the fall of Nankin fell the hope of the Taep­
ings. The city was defended by three walls— one round the city
proper, another round the Tartar portion, and a third, which defended
the T ien -W ang ’s palace.
The outer wall was breached by means
o f a mine, containing 60,000 pounds o f powder. On the 18th inst., it
was abandoned by the rebels, who made no defence at the Tartar city, but
fell back to the third line. Here the Taepings are said to have fought
very bravely, but they were too weak to resist successfully the stronger
force, which their enemies brought against them.
The next day the
whole city was in the hands of the Imperialists, and the Taeping rebellion
was subdued. Within the palace was found the dead body of the T ien W ang , lying upon the ground, and hanging from the garden trees were
the bodies of a number of his wives. He knew that there was nothing to
hope for from Imperial clemency ; so when he saw his power gradually
decrease, and the chance of offering any effectual resistance become smal­
ler and smaller, and found himself unable to retain possession of the city,
where he had established his government, he quitely hung his wives upon
the trees of the garden, and swallowed gold leaf, the favorite mode in
China of committing suicide. Part of the garrison escaped, and part were
T ien -W a n g .




1865.]

Why the Gold Revenue is Falling Off.

49

made prisoners.
Those that escape have to wander as fugitives about
the country, and the prisoners have little to expect from the Emperor’s
mercy. The brother of the T ien -W ang , and one of his chief officers, who
were taken, were sent to Pekin for execution.
It was thought by many
Chinamen, that they would be brushed to death; that is executed by
means of an iron brush passed over the body, tearing the flesh from the
bones— a method of execution almost surpassing, in the refinement of its
cruelty, the ingenious devices o f the Spanish Inquisition. With regard
to the body of the T ien - W a n s , the Emperor commanded that the flesh
should be torn from the bones, and the head be sent through the country.
It was not, however, on account o f any ability on the part of the Manchu generals, or any superior wisdom ever displayed by the Imperial gov­
ernment, which turned the scale against the Taepings, and finally effect­
ed the complete overthrow of the rebellion. It was the foreign element
introduced in favor of the Tartar dynasty, to which the Pekin govern­
ment is indebted for its own preservation ; and that portion of the Empire
over which the T ien - W ang held sway, for deliverance from the blasting
influences of his rule. Our own people, as well the English and French,
gave, at the last, very effective aid to the Imperialists. Introducing among
the Chinese the discipline and tactics of the Western nations, they quick­
ly showed their superiority to the clumsy operations of the rebel soldiers.
An American by the name of G ough rendered, in this way, most impor­
tant service, and obtained the title o f Admiral.
A Mr. W ard also be­
came a General over the Chinese forces. But the most effective aid was
rendered by a Major G ordon , o f the English army, who drilled a number
of the Imperial troops, and was promoted for his eminent ability, to the
rank of General in the Chinese service.
He assisted the Imperial forces
in taking very many important places, or perhaps it would be more cor­
rect to say, that the Imperial forces assisted him ; for to the superior ele­
ment, which he was personally instrumental in putting into practice, be­
longs the merit of the capture o f the most important cities, and of the
final suppression of the Taeping rebellion.
Nankin will hereafter be open to trade. It was a large and important
city, but is now mostly a heap of ruins. The country about it is a desert,
and years will elapse before it can recover from the pernicious influences
of Great Peace. Taepingism is probably dead forever, and we are not
aware that the mercantile interests, or the extension o f Christianity, have
materially suffered from the failure o f the T ien - W ang ’ s Heavenly admin­
istration.

WHY THE GOLD REVENGE IS FALLING OFF.
P R O H IB IT O R Y D U TIE S.
E x p e r i e n c e is revealing the many crude and absurd provisions o f the
present Tariff Act, whereby the revenue of the country is diminished
rather than increased.
Take the article of spool-cotton for example. Selecting this article as
one, solely of foreign manufacture, our legislators have thought no duty
too high. The present specific and ad valorem duties amount to about




50

Why the Gold Revenue is Falling Off.

[January,

sixty per cent of the foreign cost, and are so arranged, that on a return
to lower prices for raw cotton, they will amount to a tax o f at least seven­
ty-five per cent— one altogether prohibitory.
The protection incidentally given to a few New England spinners, at
the expense of the United States Revenue, is enormous; the taxes paid
by them, in currency, being only one-tenth part o f those levied on the
foreign spinners. The Internal Tax is five per cent in currency, a tax
which produces from five to six cents per dozen at this time, and which
will not yield more than two and one-quarter cents a dozen at the ordin­
ary prices of spool-cotton.
The duty on foreign thread, ranges from
twenty-four to twenty-six cents per dozen, according to quality, and is
payable in gold. When gold can be bought at a premium of 2.25, this is
equal to 54c@ 60c. per dozen in currency. Since the Tariff A ct went in­
to effect, the fluctuations in the price o f specie have made the duty, at
times, equal to seventy-four cents in currency, against an average tax of
six cents on the domestic article.
The consequence is an enormous falling off in the imports, and conse­
quent specie-revenue, raised from duties on spool-cotton, which, for many
years has been upwards of $300,000 in coin, at the port of New York
alone; and which, for the past two years has been about $500,000 per
annum. It is absurd to suppose that a domestic tax o f only six cents per
dozen in currency will make up this deficiency, even if the entire trade
could be transferred to New England.
Already the general bulk of the importations of this article have been
largely diminished under successive advances o f duty, and since the last
Tariff'act went into effect, they have almost ceased. The great and sudden
reduction of imports for the current year cannot be attributed to excessive
importations prior to the passage o f the Act, since the imports of 1864
were very nearly the same as those of the two preceeding years. The
true explanation is to be found in the losses which foreign spinners are
now suffering, in their attempts to contend against these heavy odds,
whereby importation is stopped. The duty has passed the point at which
the article will yield revenue.
The annexed tables are taken from the reports published weekly of the
New York Customs, and are approximately correct, no official statement
o f revenue from spool-cotton being accessible. As regard the quantities
imported at the Port o f New York— the figures are official, the duty for
each year being assessed according to the Tariff Act then in operation :
REVENUE OOLLEOrED FROM SPOOL-COTTON AT PORT OF NEW YORK.
IEntered for consum ption, and w ithdraw n from w arehouse.
Foreign value. D ’ty ass’ d, p. c t
In fiscal year ending.
Packages.

30th June, 1859......................
1860......................
(Duty at 30 )
p. ct, levied >1861...................
on 969 p’k’s. )
1862.......................
1863.......................
1864.......................
Six months of 1865, 1st July to
15th Dec., 1864.................




K evenue
in G old.

7,246
7,193

$1,621,199
1,589,185

24
24

$339,087 76
381,404 40

7,845

1,311,042

24

324,696 96

5,546
5,331
4,539

1,063,267
1,232,756
1,257,856

631

30
40
40
Sp’fic Duty, eq’l
to 12c, 30 p. c.
on 200 yd. thr’d,
say,
60
180,002

S18,980 80
493,102 40
503,142 40

108,001 20

51

Interest and Usury.

1865 .]

COMMERCIAL
INTEREST

LAW.-NO.

17.

AND US URY.

(Continued from Page 440, Y ol. 61.)
CHARGE

FO R R IS K

OR FO R

S E R V IC E .

I t is undoubtedly lawful for a lender to charge an extra price for the
risk he incurs, provided that risk be perfectly distinct and different from
the merely personal risk o f the debtor’s being unable to pay. If anything
is paid for this last risk, it is certainly usury. But if it is a part of the
bargain that the debt shall not be paid if a vessel or goods do not arrive
in safety, as is the case in a loan on bottomry, or on respondentia, this is
not usury. And by the same principle, if one buys an annuity to end at
the annuitant’s death, or a life-estate, even on exorbitant and oppressive
terms, against which a court of equity would relieve, still it is not a
usurious contract, provided the purchase be actual, and not a mere dis­
guise.
So, one may charge for services rendered, for brokerage, or for rate of
exchange, and may even cause a domestic loan or discount to be actually
converted into a foreign one, so as to charge the exchange ; and this would
not be usurious. But here, as before, and indeed throughout the law of
usury, it is necessary to remember that the actual intention, and not the
apparent purpose or form of the transaction, must determine its character.
So, if one lends money to be used in business, and lends it upon such
terms that he becomes a partner in fact with those who use it, taking his
share of the profits, and becoming liable for the losses, this is not usuri­
ous.
So, if one enters into a partnership, and provides money for its business,
and the other party is to bear all the losses, and also to pay the capitalist
more than legal interest as his share of the profits, this is not usurious,
because there is no loan, if there be in fact a partnership; because then
there is a very important risk, as he becomes liable for all the debts of
the partnership. If, however, there be only a pretended partnership, in
order to disguise the fact of the loan, this would be usurious, although
very possibly the lender might, as to a third party, lay himself open to a
liability for debts incurred, by reason o f his interest in the profits.
The banks always get more than legal interest by their way of discount­
ing notes and deducting the whole interest from the amount they give.
This is perfectly obvious if we take an extreme case ; as if a bank dis­
counted a note of a thousand dollars at fifteen years, in Massachusetts, the
borrower would receive one hundred dollars, and at the end o f fifteen
years he would pay back the hundred dollars, and nine hundred dollars for
the use of it. But this method is now established by usage and sanctioned
by law. It must, however, be confined to discounts o f negotiable paper,
not having a very long time to run. For the rule is founded upon usage,
and the usa^e woes no further.




52

Interest and Usury.
TH E

SALE

[January,

O P N O T ES.

There are, perhaps, no questions in relation to interest and imiry of
more importance than those which arise from the sale of notes or other
securities. In the first place, there is no doubt whatever that the owner
of a note has as good a right to sell it for the most he can get, as he has
to sell any goods or wares which he owns. There is here no question o f
usury, because there is no loan of money, nor forbearance o f debt. But,
on the other hand, it is quite as certain that if any person makes his own
note, and sells that for what he can get, this, while in appearance the sale
of a note, is in fact the giving o f a note for money. It is a loan and a
borrowing, and nothing else. And if the apparent sale be for such a price
that the seller pays more than legal interest, or, in other words, if the
note bear interest and is sold for less than its face, or is not on interest
and more than interest is discounted, it is a usurious transaction. Sup­
posing these two rules to be settled, the question in each case is, under
which o f them does that case come, or to which o f them does it draw
nearest.
W e are not aware o f any general principle so likely to be of use in de­
termining these questions as th is: If the seller of a note acquired it by
purchase, or if it is his for money advanced or lent by him to its full
amount, he may sell it for what he can g e t; but if he be the maker of the
note, or the agent of the maker, and receives for the note less than would
be paid him if only a lawful discount were made, it is a usurious loan.
In other words, the first holder of a note (and the maker of a note is not,
and cannot be, its first holder) must pay to the maker the face of the note,
or its full amount. And after paying this, he may sell it, and any subse­
quent purchaser may sell it, as merchandise. The same rule (if it be law,
o f which we cannot doubt) must apply to corporations, and all other
bodies or persons who issue their notes or bonds on interest. If sold by
brokers for them, for less than the full amount, it is usurious. Nor can
such notes comeinto the market free from the taint and the defence of usury,
unless the first party who holds them pays for them their full value.
But then comes another question. I f a note be offered for sale, and be
sold for less than its face, and the purchaser supposes himself to buy it
from an actual holder and not from the maker, can the maker interpose
the defence that it was actually usurious, on the ground that the seller
was only his agent ? W e should say that he could n o t; that there can
be no usury unless this is intended ; and that the guilty intention of one
party cannot affect another party who was innocent. Undoubtedly, a note,
originally usurious, is not healed, so far as the owner is concerned, by
transfer to an innocent holder. The indorsers may be liable to the holder;
but whatever defence the maker could have, on the ground of usury,
against the first holder, he may always have against any subsequent holder.
This is because there was actual usury at the beginning; that is, one lent
and the other borrowed, both knowing that more than legal interest was
paid. But in the case of an innocent purchaser, or, rather, of one who
supposes, and has a right to suppose, that he is a purchaser, he did not
lend his money at a ll; he only bought a security with i t ; and, therefore,
there is no usury.
W e should, however, say that, when a maker shows that the apparent




1 8 6 5 .]

Interest and Usurij.

53

seller was only his agent, and offers this as evidence that the note passed
from him usuriously, he thereby casts upon the buyer the burden of prov­
ing his innocence ; but it is then enough for the buyer to satisfy the jury
of his belief that he was only a purchaser.
As one may sell the notes or other securities which he holds as property
under no other restriction than that which attends the sale o f merchan­
dise, so we think that a man may sell his credit. The cases which relate
to this question are far from harmonious. In the dread of usury which
was formerly entertained, and the determination— so strongly expressed
by M ansfield — that it should not, by any device, escape the law, it has
undoubtedly been held that the indorser of a note should be liable upon
it only for what he received, with lawful interest. But although we have
not much positive authority for setting this rule aside, we are quite con­
fident that a better understanding of the nature of negotiable paper, o f
the contract of indorsement, and of the rules which properly belong to
the sale and purchase of money, would make the indorser liable for the
whole of the note.
If A holds the note of B, and sells it to C, without indorsing it, he can
certainly sell it for what he pleases; if he chooses to add his indorsement,
he will do so, and he will probably do this if the additional value, which
he thus imparts to it exceeds the risk he incurs. If, then, he indorses the
note, it is to make his merchandise more valuable; and it would seem to
be little less than an absurdity to say, that a merchant may not thus give
a paper he holds more value, or that he may give the paper this value,
but must not realize this value by the sale. If, however, the rule is, that,
when called upon by the indorsee, he may plead usury as between them,
and pay either nothing, or so much only as he received, without regard
to the amount he agreed by his indorsement to pay, it is obvious that the
whole effect and utility o f the indorsement would be very much impaired.
W e think that a seller with indorsement should be, and that he now gen­
erally would be, held as liable for the full amount of the note.
Some courts have held, that, if one honestly buys a negotiable note for
less than its face, he can recover only so much as he pays, with lawful in­
terest. But the law is otherwise generally, and especially in our most
commercial States, for the plain reason, that, if this be law, no note would
be saleable when money was worth more than lawful interest. That is, no
one would buy it, if he could only get his money back with simple in­
terest. Suppose one owes a note for $1,000, having six months to run,
when money is worth twelve per cent per annum. The note is worth in
the market $1,000, less six per cent, or $00 ; that is, it is worth $940.
But if a man gave this, he could recover under this rule only what he gave,
with simple interest; that is, $940 with three per cent interest, or
$968.20. Therefore he would not buy it. Only where it is supposed that
the law can always regulate and control the actual market value of money,
can this rule prevail.
W e should say, also, that one who, having no interest in a note, in­
dorses or guaranties it for a certain premium, will*be liable for its face ;
he does not now add his credit to the value of his property and sell both
together, as where he indorses a note which he holds himself, but sells
his credit alone. This transaction we should not think usurious. And if
it was open to no other defence, as fraud, for example, and was in fact




54

Interest and Usury.

[January,

what it purported to be, and not a mere cover for a usurious loan, we know
no good reason why such indorser or guarantor should not be held liable
to the full amount o f his promise. This case arose in New York. A,
being desirous of raising money upon a note, drawn by himself, and in­
dorsed for his accommodation by B and 0 , authorized a broker to buy an
additional name or guaranty, for the purpose o f getting the note discounted,
and application was accordingly made to D, who thereupon indorsed the
note, receiving a commission o f two and-a-half or three per cent therefor ;
it was held that the taking of the commission by D did not render the
transaction usurious, and D was bound for the whole amount. The earlier
cases, however, seem to have held that the compensation thus received
must not exceed the lawful rate o f interest for the time the paper has to
run.
CO M PO U N D

IN TER EST.

Compound interest is sometimes said to be usurious ; but it is not s o ;
and even those cases which speak of it as “ savoring of usury,” may be
thought to go too far, unless every hard bargain for money is usurious.
As the authorities now stand, however, a contract or promise to pay money
with compound interest cannot, generally, be enforced. On the other
hand, it is neither wholly void, nor attended with any penalty, as it would
be if usurious; but is valid for the principal and legal interest only.
Nevertheless, compound interest is sometimes recognized as due by
courts of law, as well as o f equity ; and sometimes, too, by its own name.
Thus, if a trustee be proved to have had the money of the party for whom
he is trustee (who is called in law his cestui que trust) for a long time,
without accounting for it, he may be charged with the whole amount,
reckoned at compound interest, so as to cover his unlawful profits. If
compound interest has accrued under a bargain for it, and been actually
paid, it cannot be recovered back, as money usuriously paid may be. And
if accounts are agreed to be settled by annual rests, which is in fact com­
pound interest, or are actually settled so in good faith, the law sanctions
this. Sometimes, in cases o f disputed accounts, the courts direct this
method of settlement.
Where money due on interest has been paid by sundry instalments, the
mode o f adjusting the amount which has the best authority, and the pre­
vailing usage in its favor, seems to be this: Compute the interest due on
the principal sum to the time when a payment, either alone or in con­
junction with preceding payments, with interest cast on them, shall equal
or exceed the interest due on the principal. Deduct this sum, and upon
the balance cast interest as before, until a payment or payments equal the
interest due ; then deduct again, and so on.




1865.]

55

The Treasury Report.— Past and Future Policy.

THE TREASURY REPORT.— THE PAST AND FUTURE POLICY.
W hen a few months since Mr. F essenden succeeded to the arduous
position and complicated embarrassments bequeathed by Mr. C hase , we
sympathised with the new Secretary in the great task he had undertaken.
The finances, inflated like an immense balloon, and showing evident signs
of colapse, after a more or less successful ascension, were put into his
hands to guide and sustain. He has now had five months experience of
the task, and his annual report is before us. W e should, however,
remember, in examining it, that he is not to blame for the errors of his
predecessor, nor for their necessary consequences. Had he, therefore,
taken hold of his department with a firm hand, and a steady purpose to
guide the ship through the breakers that surround it— had he shown no
signs of yielding to the cry o f eager speculators who live upon inflation—
had he adopted every expedient to bring his ballon to the earth again, no
fault could be found with him. But we are sorry to see, that although
he acknowledges this swiming in the air is not safe, yet he appears either
to like it or has not the courage to make the necessary change: so he
casts about for some means of sustaining himself without apparently
having any exact idea o f the kind of aid which will be effective.
He informs us that revenues from taxes are not as large as he hoped
for, and appeals to Congress for some action which will be more efficient:
and yet he fails to propose any adequate taxation or to make any change
in the policy pursued. It is difficult, therefore, to see how he would
attain the desired end. A t the last session of Congress the duties on im­
ports were doubled and the internal revenue charges consolidated and
increased, and yet the revenue bears a less ratio to the increasing expen­
diture than ever. The actual income for three years has been as follows,
with the estimate for 1865, now half elapsed :
1862.

1863.

$49,056,397
152,204
1,795,332
931,787

$69,059,642
167,617
1,485,103
37,640,788
3,046,615

$102,316,153
588,333
475,649
109,741,134
47,511,488

$70,271,092
642,186
16,080
249,562,860
24,020,171

Total revenue... .

$51,935,720

$111,399,766

$260,632,717

$344,512,389

Expenditures........... .
Excess expenses... .

474,744,778
422,809,058

Customs...................
Lands .......................
Direct t a x .................
Internal i evenue. . . .
Miscellaneous...........

714,709,995
603,310,229

1864.

865,234,087
604,601,370

1865.

1,248,790,997
904,278,608

These figures present the difficulties of the position. The increase of
expenditure is constantly exceeding the increase o f revenue.
The statement of the income, as above given, is not quite accurate, how­
ever. It will be observed that the customs which are paid in gold are
added up in their specie value, with other resources given in the currency
value. This would have been accurate had the provisions of the law been
carried out which provides that the coin received for currency shall be
appropriated exclusively to the interest on th expublic debt and to a sink­
ing fund. The amount of customs, however, exceeded the amount paid




56

The Treasury Report.— Past arid Future Policy.

[January,

for interest by forty-eight millions, and that sum, instead of being applied
to a sinking fund, as the law directs, was sold and used for other purposes,
under the head of miscellaneous receipts.* There is a credit of $16,498,975
for premium on gold sold. This would give a premium of about 33^ per
cent on the surplus gold, but much o f it was sold at 65 premium under
official public notice; and at that premium the actual revenue of the year
should have been $16,000,000 greater than reported, making $32,000,000
derived from the premium on gold for the service of the Treasury. The
business of the present year is such that the customs will give no more
than will be required for interest, and perhaps, as the Secretary intimates,
not enough for that purpose. Hence, notwithstanding the increased esti­
mate for the internal revenue tax, the actual revenue for the service of
1865 will he very little more than last year. This is apparent if we
deduct the amount applied to interest:
Gold receipts...........................................................................................
Interest p a id ..........................................................................................

$102,316,153
53,685,422

Balance g o l d .................................................................................
Add premium...........................

$48,630/731
32,500,000

Total used for general purposes................................................
Other revenue.........................................................................................

$81,130,731
158,316,564

Total currency revenue, 1864 .....................................................
“ 1865, less gold.....................................................................

$239,447,295
274,241,297

Net increase........................

$34,794,002

Now, when it is borne in mind that these are results from a revised
tariff, by which duties were doubled, and a revised revenue law which
came into operation with Mr. F essenden , in July, and that these figures
also embrace a 5 per cent extra tax levied upon the incomes of 1863, and
which the report of the Commissioner of internal revenue informs us will
give $35,000,000 ; and when we remember, also, the great increase of our
expenses, caused by the increased currency issued by the Treasury and
the National Banks, we become aware of the gravity of our financial posi­
tion and the necessity for some radical change.
W e have already stated that the difficulty lies in the fact that our
revenue, each succeeding year, bears a less and less ratio to the expendi­
tures. Why this is so is evident. So long as prices rise our expenses
must increase, and so long as Government adds to its issues of paper,
and allows Banks to do the same thing, prices will evidently rise. The
* The Treasurer has applied the gold ($48,000,000) to purposes other than those
the law directs, and all the explanation he makes is the following:
“ The act of February 25, 1862, provides that the coin received for duties on im­
ports shall, alter paying interest on bonds and notes, be appropriated to the purchase
of one per centum of the public debt, to be set apart with its accruing interest as a
sinking fund, as the Secretary might, from time to time, direct. All experience has
proved that, in a time of war, when expenditures must largely exceed receipts from
ordinary sources, and large sums are borrowed in each year, the attempt to establish
a sinking fund invariably fails. It is, in fact, simply borrowing to lend again. For
this reason, no attempt to carry out this provision has yet been made.”




1865.]

57

The Treasury Report.— Past and Future Policy.

extent to which our expenses are being multiplied by the currency is
seen in the foregoing statement. The measure of the depreciation is
the price of gold, which is lower in relation to paper than most other
commodities, and is, consequently, a safe guide to the over-supply o f
paper. If we take, then, the average price of gold each fiscal year, in
connection with the expenses for the same time, the one will explain the
oth er:
1863.

E xpenses................... $474,744,778
Average premium on
gold.........................
3

1863.

1864.

1865.

$714,709,995

$865,234,087

$1,248,790,997

40

60

125

Our expenses ought really to decrease as the war advances, since much
o f the material bought the first year does not have to be purchased again.
The unfortunate policy that has been pursued, however, has made a con ­
trary result.
If now we take the official tables of the receipts and expenditures of the
quarter ending September 30th, being the first quarter of each of the
two fiscal years 1864 and 1865, we may also learn the effect on the reve­
nue of the paper issues:
1863.

1864.

C ustom s.......................................................................
Lands............................................................................
Direct tax.....................................................................
Inland revenue....................
Miscellaneous...............................................................

$22,562,018
136,182
...............
17,599,714
641,542

$19,271,092
342,186
16,079
46,562,86®
9,020,171

Total.....................................................................
Expenses.....................................................................

$40,939,456
176,110,932

$75,212,408
353,061,861

Excess borrowed.........................................................

$135,171,476

$277,849,453

The following statement shows the revenue o f these two quarters at its
specie value, which was 30 premium in 1863 and 150 in 1864, and, also,
the actual revenue, less the customs:
Currency Revenue.

1863 .................................................. .......................
1864 .........................................................................

$18,377,438
65,941,316

Specie value.

$14,136,481
22,376,510

Thus we see there was an increase of $177,000,000 in expenses, while
there was an increase o f $37,000,000 in currency revenue, and only
$6,000,000 in coin value. Can we look at such figures and then read
with patience the portions o f the report spieaking in commendation of
National Banks and their fast increasing currency, or those sentences re­
commending that unlimited powfer be granted the Treasurer to issue legal
tenders !
Mr. F essenden makes, apparently, a grave error in the amount to be
borrowed this year. Thus, he gives the income and expenditure of the
year as follows:
R evenue.

1 quarter actual.. . ,
3
“
estimated
Total................................
Deduct uuexpeuded balances
Amount, less revenue. ........................................
V O L . L II.-----N O . I .




4

E xpenditure.

$75,212,408
269,299,981

$353,061,861
1,245,729,135

$344,512,389
...............

$1,598,790,996
350,000,000

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

$1,248,790,996
904,278,607

ss

The Treasury Report.— Past and Future Policy.

[January,

This sum evidently represents the amount that must be borrowed, yet
Mr. F essenden states the amount to be $570,727,508. The error of this
last statement is manifest from the fact that the official figures show the
amount actually borrowed in the first quarter ending September 30, to
have been $277,849,453, or nearly one-half of what he puts down to the
whole year, and there still remained a large amount of arrear requisitions
to be met.
Such seems to be the real condition o f the Treasury, and the Secretary
appears to be puzzled, for he does not pretend to point out any remedy.
He suggests rather than advises a tax upon leaf tobacco, a tax on all sales
of merchandise, that the income tax be made to embrace all sums, and
that the tax increase in proportion to the incom e; also, that mineral
lands be rented instead of sold. Any or all of these means he thinks will
increase the revenue.
The great resource, however, is to borrow, and this is to be done on
bonds with paper interest, even if it requires another flood of paper to
float them. W hy such a course is persevered in, is past finding out. Can­
not the Government see that when they depreciate the currency they are
not only increasing the expenses, as shown above, but are depreciating the
value o f the stock issued as compared with the products o f industry ?
Thus the farmer in December, 1863, could get a United States six per
cent gold interest bond o f $1,000 for 170 barrels flour, to-day he can get
the same bond for 90 barrels flour; or he could get the bond last year for
60 barrels mess pork, this year it will cost him but 30 barrels of pork.
The President, in his annual message, proposed that the bonds should
be exempt from all tax, and made also exempt from seizure for debt.
Mr. F essenden sustains this expedient as follows :
“ I f our public debt must necessarily be large, and require a long course of years for
its liquidation, its wide diffusion is most desirable. Such advantage should be offered
as will induce all, who have anything to spare beyond the amount required for their
own support or use, to invest the surplus, or a portion of it, in the national securities.
These advantages can only be found in an increased rate of interest, an exemption
from public burdens, and security of possession. What limit Bhould be fixed in either
of these particulars it is for the practical experience and wisdom o f Congress to as­
certain and determine.”

This loan is so very objectionable that we cannot think it will be seri­
ously entertained. Suppose the Government was able to absorb all the
capital of the country in such a loan, who would pay the taxes necessary
for interest, etc. ?
Of course as the Secretary has no particular policy to recommend for
raising the necessary funds, he asks for further and unlimited power to
increase the currency. On this point he says:
“ A wide discretion should be entrusted to the officer charged with the duty o f ne gotiating loans, in order that he may be enabled to avoid unexpected difficulties oc­
casioned by, possibly, conditions of the money market. This delicate and respon­
sible duty must necessarily be entrusted to somebody, and the people can have no
other reliable security for faithfulness in its discharge than may found in the estab1ished character of the individual charged with so important a irust, whoever he may
be. The discretion thus confided should, in the opinion of the Secretary, include the
power o f increasing the currency.”

He protests strongly against the supposition that he would needlessly
i ncrease the currency. But in regard to this power being granted the




1865.]

The Treasury Report.— Past and Future Policy.

59

Comptroller of the National Banks has the following excellent pro­
test :
“ Circulating notes have been issued under peculiar circumstances by other govern­
ments, as is now being done by that of the United States, but the judgment o f the
world is against it as a permanent policy, and nothing but an overpowering public
exigency will at any time justify it. Under popular institutions like ours no more
dangerous, no more corrupting power could be lodged in the hands of the party in
possession of the Government; none more perilous to official probity and free elec­
tions. Give to a party dominant in the legislative and executive branches of the
Government the authority of issuing paper money for the purpose of furnishing the
country with its currency, subject, as it would be, to no restraint but its own pleasure,
and what guaranty would there be that this authority would be honestly and judici­
ously used? I f there were no risk in the preparation of the notes, and checks were
provided to make fraudulent issues an impossibility, the power of issuing Govern­
ment promises as a circulating medium is too dangerous a one to be conferred upon
any party, except under extraordinary circumstances.”

This is, as we said, no doubt a correct view of the matter. But although
the Comptroller argues against Mr. F essenden having this power, he
claims it in behalf o f the National Banks which he controls, and says it
is indispensable for the Treasury to control the currency. He fails en­
tirely to show how the increase o f the currency through banks which he
controls, is any less dangerous than for the Secretary o f the Treasury to
control the currency himself directly.
The gold revenue is now short of the interest account, and the spectre
of a deficit gold fund presents itself to the mind of the Secretary:
“ But whatever success might attend any effort to check speculation in coin, or to
counteract its injurious effect, it is still obvious that so long as there remains a large
and increasing necessity for its use, and a limited supply, it will command a price
commensurate with the necessity and the difficulty of obtaining it. This necessity
arises from the demand for foreign exchange, the customs duties, and to pay the in­
terest on the public debt. The matter o f foreign exchange I do not propose to dis­
cuss. The demand for duties on imports and that to pay the interest on a large por­
tion of the public debt are so f&r identical that one is dependent upon the other. The
laws authorizing the issue of bonds bearing interest in coin specifically pledged the
revenue from customs to the payment of that interest, and provided for the collection
of those duties iu the same currency. In the opinion of the Secretary that pledge
should not be violated ; a departure from it could only be vindicated by one o f those
state necessities which ju stify a nation in temporarily postponing its obligations in
order to preserve the power to discharge them at a future day. When the pledge was
given no one anticipated a possible continuance o f the war for such a length of time
as would involve the increase of the public debt to the point it has already attained,
or the possible payment o f interest in coin to an amount beyond the ability o f duties
on imports to supply. It will be noticed, however, that our annual coin interest now
exceeds $56,000,000. Should the additional amount required for the expenditures of
the present fiscal year be raised upon bonds bearing interest in coin, and the revenue
from customs not exceed the estimate predicated upon the receipts of the first quarter,
it is quite manifest that resort must soon be had to some other source o f supply, or
recourse must be had to the emission of securities of a different character.”

These suggestions thus put forth involve very grave consequences. The
actual interest payable in coin is $61,000,000. The actual amount o f
duties in the last ten years of peace was $.34,000,000 average. The paper
outstanding convertible into coin stock will raise the interest to $70,000,000
if no more is created. The point is therefore reached when “ resource
must be had to securities of a different character,” and what are these?
Such is the substance of the report of our new Secretary so far as he
develops his future policy. To our mind there is little in it that is satis-




Commercial Chronicle and Review.

60

[January,

factory. It fails to suggest any plan for the future, or any remedy for the
present. As we understand it, the Treasury is to be left to drift along,
while old evils are too aggrivated. Oh, for a man brave enough to strike
out boldly and swim against this current which is hurrying us on to
bankruptcy ! Is it fear that leads our official men to recommend a three
per cent income tax when it should be thirty per cent, if there is no bet­
ter way to raise the money ? Is it something worse than fear that allows
the further increase o f our currency through Government and through
banks ? W hy should banks o f any kind (whether State or National)
have the power to issue circulation now ? Gan the Government afford to
increase its expenses each year as in the past, and can we as individuals
continue to pay an advance each day for our daily bread ? Is there no
limit to our ability to do this ? Certainly the late election has shown the
administration that the people are in earnest in carrying on this war. All
they ask is, that it be managed rightly, economically. Unwelcome as
taxation is they are ready for it, if the Government will only avoid other
measures which are neutralizing the payments they are called on to make.

COMMERCIAL CHRONICLE AND REVIEW.

IMPORTS AND E XPO RTS A T N E W Y O R K FALLING OFF— PRICES OF SIXTEEN A RTICLES FROM
— EFFECT OF T R E ASU RER’ S REPORT— THE

7 . 3-10

BONDS, RIGHT OF

CONVERSION— UNITED

1862-64
STATES

P A T E R , PRICES OF FOR YEAR— SPECIE AND PR IC E OF GOLD— RATE8 OF EXCHANGE, ETC.

T hebe has been, during the month, little change in a commercial point of view.
The uncertainties that attended the election, the publication of the annual re­
ports, the assembling of Congress, the new projects tor increasing the taxes, and
their probable influence upon the value of and demand for goods, together with
the anxieties in relation to military operations, and their possible influence, in
combination with the Treasuary measures for the raising of money upon the
value of goods, have all tended to paralyze enterprise, the more so as a new draft
for 300,000 men was announced towards the close of December. The imports
and exports of the port of New York, as compared with last year, show a great
falling off. They have been as follows, November 1 to December 19 :
•----------------- Exports.------------------,
Im ports.

1863 ..................................
1864 ...............................

$25,964,896
13,412,177

C urrency
value.

$20,027,109
28,963,763

Specie
value.

E xcess
imports.

$13,635,218
12,069,291

$12,329,678
1,342,886

The amount of goods imported was hardly more than half that of the same
period last year, but as the price of gold fluctuated in the market, advantage
was taken of the low rates of gold to draw goods out of bond, and the duties so
paid seemed to sustain the customs revenue, which nevertheless has been much
less than at the same period last year. The rise in gold and in taxes has told




1865.]

Commercial Chronicle and Review.

61

heavily upon consumption by greatly enhancing prices. The following is a com­
parative table of the prices of sixteen articles in illustration :
March, 1862.
$9 00 a 10 00
1 25 a 2 50
17 25 a 19 50
48 a
50
11 00 a 11 50
21 00 a 21 50
1 50 a 1 75
27 00 a 30 00
35 00 a 45 00
50 a
55
5 00 a 5 50
31 00 a 32 50
26 00 a 27 00
6 87 a 8 75
30 00 a 32 00
5 50 a 5 70

March, 1863
$18 00 a 18 50
2 00 a 2 85
30 60 a 34 00
85 a
87
16 00 a 16 75
30 00 a 31 00
3 60 a 3 16
40 00 a 42 00
45 00 a 55 00
47
45 a
10 00 a 10 50
45 00 a 46 OO
55 00 a 56 00
9 25 a 11 60
56 00 a 58 00
9 00 a 9 37

$228 35 a254 26

$370 65aS96 56

Marchi. 1864,
Cordage, Manilla
$19 00 a 20 00
Indigo
1 60 a 2 50
JUi
36 00 a 87 50
Coffee, Rio, ICO lbs .
H
’
,
83 a
India rubber..................... ^
........... .. ...
85
uj c
15 50 a 15 75
Gunny cloth, 100 yards . . k.>V, . . . . . . ,
Hides, Rio, 100 lbs . . .......
29 50 a 80 00
■•
Plaster of P a n s ....................... ..
3 25 a 3 50
..
Leather, oat. m id....................... . ViL,_.. .. y j
45 00 a 47 00
Mahogany................. .
100 00al50 00
Molasses, No. g a ll...
70 a
80
Silk, raw .....................
9 50 a 9 75
62 50 a 65 00
Cassia, 100 lbs...........
G in ...........................
103 OOallO 00
Sugar, Cuba, 100 lbs
12 25 a 14 75
56 00 a 67 00
Tin, B anca.................
12
Spelter.......................
50 a 13 00

December, 1864.
$24 00 a 25 00
2 60 a 8 00
44 00 a 48 00
1 16 a 1 20
20 50 a 21 00
31 00 a 32 00
4 50 a 4 80
49 00 a 52 00
75 00 allO 00
1 10 a 1 27
14 00 a 15 00
100 00 al05 05
210 00 a215 00
16 25 a 22 25
70 00 a 72 00
15 00 a 15 50

$516 13 a577 00

$679 lla739 27

Cordage, Manilla.......... .
Indigo.............................
Coffee, Rio, 100 lbs . . .
India rubber...................
Canny cloth, 100 yards
Hides, Rio, 100 lb s .. . .
Plaster o f Paris..............
Leather, oat. m id .........
Mahogany..................... .
Molasses, Ho. gall . . . .
Silk, raw .........................
Cassia, 100 lb s..............
Gin............... .................
Sugar, Cuba, 100 lb s .. .
Tin, Banca.....................
Spelter,

\

This average aggregate rise' has,''been as’.fojlows :
aG old
ptem id m .

March,
“
“
Dec.,

1862......................................
1863 ......................................
1864........................................
1864........................................

* 1^ *
54
‘ 52 •'
1, 25 1

•••

.« •
‘

Id articles.

2<-f
3^
546
709

30
55
56
19

R ise
per c e n t

60
130
194

This table shows that the price of commodities keeps always in advance of that
of gold. Thus the premium on gold is 125 per cent, and the advance in the
articles has been 150 per cent on the gold price of those articles. These higher
prices include the duties, the cost of gold with which payment is made, the price
of exchange, the stamps and other taxes, and all the expenses and profits of the
importers. Before the goods reach the consumers they are thus loaded with ex­
penses, charges,taxes, and profits, which therefore necessarily diminish the ability of
the consumers to take the usual quantities. The home manufacturers have had




62

Commercial Chronicle and Review.

less to contend with. They have been charged with three per cent tax, and other
charges, and the rise in raw materials and wages, but they have been sustained
by a large and effective demand from the Government for most materials of
clothing, munitions, etc., at rates which have left a considerable profit. The
manufacturing sections have indeed never been so prosperous as during the past
year. It is the case, nevertheless, that the stocks of merchandise generally, as
well in first hands, as those on the shelves of stores, and in possession of con­
sumers, an far less than in ordinary years, while there is very little apparent dis­
position at the present moment to import. For these reasons prices are generally
firm.
The effect of the annual Treasury report was not very marked. The leading
idea advanced was that the issue of paper money would be restrained, and that
dependance would be had mostly upon paper interests bearing securities, to the
exclusion of gold stocks, the amount of which the Secretary intimated is quite
as large as the revenue from customs will meet. Nevertheless, he asked for the
authority to issue more legal tender at discretion, -while avowing the strongest
opposition to the exercise of that discretion.
The securities most pressed upon the public were 7.3-10 three year notes,
with coupons payable half-yearly, and convertible into 5-20 six per cent gold
stock at maturity. The right of conversion is not, in this case, very valuable,
for the reason that the gold stock to be issued in exchange is also payable, at
the will of the Government, at the end of 5 years, and may be paid in paper by
the contraction of a new loan for the purpose. The sales were, therefore, not
very great. An amount of about $27,000,000 of the 5-20 gold stock was issued
to private takers at about 105. This stock was in some demand on account of
the rapid increase of the new Banks, which desire them to place with the Comp­
troller. The negotiation was followed by another of the 10-40 five per cent gold
stock, the only stock absolutely payable in coin at maturity. The amount of
this stock authorized by the law of March, 1864, was $200,000,000. There had
been sold about $82,000,000, and the balance of $18,000,000 was taken up, in
the hope that the Secretary would make a public announcement withdrawing
the remaining $100,000,000 from market. Th'S he deeljned to do. Last year
Mr. Chase ^topped, taa ^qle, of the 5-2j)’t3 w iik ihey*we|e being rapidly sold, in
order teat by
dpjng the price might rise for the benefit of the speculators.
The results were b j $ a means satisfactory, and Mr. F essenden seemed desirous
of avoiding that mistake, .TJie pqgotiatiou.left the Treasury with the following
means to negotiate:
10-40’s 5 per cent gold stock ........................................................ ..
5 20’§ 6 per cent gold stock.
..........................................
3 year 7.310 paper notes........................................................................

§100,000,000
133,000,000
60,000,000

The 10-40’s were sold at par, with an allowance of 3-16 discount. The inter­
est ran from September, and accrued interest was paid by the buyer in gold, or
at the rate of 150 in currency. One year certificates, due before Jan. 6, were
taken with the interest in full. One year notes, due in February, were also
taken with interest. The movement caused a greater degree of activity in
Government stocks, the more so that the scarcity of business paper directed the
growing abundance of money mostly into Government stocks for employment.




1865.]

Commercial Chronicle and Review.

63

This was encouraged by the disposition of the Government Banks to sell the
stocks on small margins and lend the money on them. The effect on prices was
as follows :
PRICES UNITED STATES PAPER.
6’ s ,i 8 S i. — v

January 2 ..
M
9 ..
((
1 6 ..
it
2 3 ..
(«
3 0 ..
February 6 ..
It
1 3 ..
u
2 0 ..
it
2 7 ..
March
5 ..
**
1 2 ..
u
1 9 ..
it
2 6 ..
April
2 ..
it
9 ..
it
1 6 ..
it
2 3 ..
ti
3 0 ..
May
7 ..
“
1 4 ..
it
2 1 ..
U
2 8 ..
June
4 ..
u
1 1 ..
n
1 8 ..
u
2 5 ..
July
2 ..
“
9 ..
“
1 6 ..
ti
2 3 ..
it
3 0 ..
Aug.
6 ..
it
1 3 ..
it
2 0 ..
t
2 7 ..
Sept.
3 ..
*
1 0 ..
n
1 7 ..
*l
2 4 ..
O ct
1 ..
8 ..
«t
1 5 ..
u
2 2 ..
“
2 9 ..
Nov.
5 ..
44
1 2 ..
w
1 9 ..
tt
2 6 ..
Dec.
3 ..
ti
1 2 ..
“
1 9 ..
M
2 6 ..

Reg.
104}
104f
104
106
106J
1074
1094
1114

1114
1114

112
112
112
111
112
1074
1054
114
113
114
114
114
109
108
107

Coup.
1054
1054
1054
107
106
1074
1094
110
1104

111
112
1124

1124
110
112
1124

104

108
114
113
1144
114
114
1134
113
112
112
111
104

1024
1024

1024
1024

107
1064
1064
1084
1094
107
107
108
108
106
1054
106
106
1064
1074
1074

107
1054
107
1084
1094
107
1084
1 0 S4

1044
1044

1104
1114

1074
1084
109
110

1074

1064
1054
1054

1064
1054
1064
107#
1104
1114
1074

108f
1094

110

i ’s, 1874.

96
96
96
97
100
100
100
100
100
100
100
100
100
100
102
102
109
102
102
102
102
102
102
102
102
102
102
102
102
102
93
99
100
100
100
100
100
100
100
103
100
100
100
100
100
100
100
100
100
100
100
100

7 3-10,
3 years.

1064
1664
1064
107
1074
108
1094
111
111
111
1104
1104
1114
111
1114 '
112
109
111
1094
111
111
111
109|
1084
107
1064
1054

105
1034
1034
1074
1074

108
110
1114
111
111
1104
1104
1104
1054

105
105
108
1064

108
118
120
116
120
120
120

1 year certit.
N ew .
1014
97f
102
974
1024
974
103
97
1024
974
1024
98f

Old.

103
103
103
1034
103
103
103

...

98f
994
994
994
99|
994
994
994
994
99
67
984
984
984
884
984
98
974
97
964
94
94
944
924
964
944
95
C fri
<05
93|
934
934
944
94}
944
944
94}
95
954
954
96}
96}
974
97}
974
96f

Gold.
1514a 151f
152 a 152*4
155 a 1554
156 a 158
1564 a 156#
159# a 1 5 9 f
1594 a 1594
159} a 161
159} a 161
1 6 l| a 1614
1624 a 1 6 2 f
162 a 1624
169# a 179
1 6 6 } a167|
1 6 9 }a 170
173 a 189
1 7 4 } a 179
1794 a 179}
1 7 3 }a 173#
1 7 2 }a 1724
183 a 1834
186 a I 8 6 4
1 9 0 } a 191
198} a 198#
1954 a 196
212 a 216
235 a 240
2664 a 267
244 a 285
250 a 268
251 a 2514
260 a 2604
2564 a 256
2574 a 2574
254 a 255
254 a 2544
234 a 238
2 2 2 4 a 222#
2124 a 2124
1944 a 194}
2 0 0 4 a 200}
2134 a 214
209} a 210
2164a 216}
2394 a 240
244 a 245
2164 a 217
219 a 219}
2314 a 282
240 a 2414
2344 a 2344
217 a 2174

The rise in the 6’s carried the prices here to a rate higher than the price
abroad, which varied from 40 a 43 cents per dollar in London.




84

Commercial Chronicle and Review.

[Januaryr

The demand for gold was well sustained during the month for export, and the
movement was as follows :
SPECIE AND PKIOE OF GOLD.

---------- IS ;6 3 .----------«
R e ce iv e d ,

E x p o rte d .

2 . . ...................
9 . . . . 1,277,788
16 . . • • . . . . . . .
23 . . . .
678,841
80 . . , , ............
Feb. 6 . . . .
301,860
13 . . . .
359,987
20 . . .....................
27 . . . .
285,394
March 5 . . . . 1,243,551
12 . . ..................
249,514
19 . . . .
159,105
26 . . . .
Apr. 2 . . . .
250,778
9 . . .....................
16 . . . .
217,602
23 . . . .
256,604
30 . .
205,05'?
May 7 . . , .
14 . . , .
258,570
12 . . . .
......
28 . . . .
318,066
June 4 . . . .
11 . .
.........
18 . . , ,
187,082
25 . . . .
...........
July 2 . . . ,
254,947
9 ... .
16
.........
23 . . . , .
270,182
80 .
..........
Aug. 6 . . . ,
313,612
13 . . . . .
20 . .
231,854
27 . . . .
......
Sept.. 8 . ., .
279,043
10 . . .
193,548
17 . . .
277,880
24 . . . ..
.....
Oct. 1 . . .
268,282
8 ...
14
15 . . .
It
267,911
22 . . .
4* 29 . . .
......
547,338
Nov. 5 . . .
C( 12 . . .
281,340
« 19 . . .
261,730
<4
261,101
26 . . .
Dec. 3 . . .
« 12 . . .
305,660
297,899
19 . . .
U i26 . . .
....................

681,448
726,746
1,380,247
780,817
1,831,027
1,277,000
1,152,846
520,017
1,377,016
733,643
3,540,550
1,201,907
1,050,156
473,385
607,059
158,437
629,855
294,998
451,827
661,996
438,745
279,994
411,483
235,364
522,147
134,432
347,807
401,936
2,190,781
1,725,748
480,374
580,044
1,210,220
238,398
1,379.710
309,799
852,752
535,796
1,411,611
803,583
2,555,656
1,206,950
1,243,273
585,302
646,017
895,796
1,006,907
1,331,057
1,771,021
1,409,455
1,466,497
730,806

Jan.

-------------16 ;6 4 .---------------------------- .
R e ce iv e d .

E x ported.

G old in bank. P rem .on gold

590,262
1,216,204
279,801 1,985,057
365,608 1,000,000
324,864
668,747
662,616
363,19S 1,219,808
325,632
407,057
531,700
512,358.
629,803
465,920
281,304
88,881
375,101
273,900
273,429
168,912
302,344
345,471
269,522 1,002,384
3,226,000
282,376 1,271,836
282,276 1,174,241
2,452,668
383,428 1,884,195
580,820
271,801 1,425,688
1,543,600
291,208 1,886,663
281,011 1,296,356
560,677
301,207
486,339
301,244
249,095
556,464
284,301
404,312
90,111
341,883
571,281
48,009
206,398
387,281
444,503
486,451
369,592
669,733
1,288,559
281,481
603,604
275,131
287,758
191,781
239,491
616,456
279,121
932,648
381,310 2,296,630
489,632 1,224,280
1,545,165
1,524,113
1,528,255
376,878 1,072,508
792,517* 1,671,487
381,220 1,281,851

25,161,935 511 a 52
25,122,002 5 1 f a 52
24,884,264 521 a 564
24,681,204 56 a 58
24,203,632 661 a . . .
24,070,191 S9J a . . .
23,521,453 95 a . . .
22,523,918 59 a . . .
22,301,687 165 a 61
21,220,653 611 a 651
20,760,495 62 a 62
21,059,512 62 a 70
20,425,504 691 a 681
19,527,665 63f a 711
20,924,287 67 a 29
21,687,670 71 a 89
24,868,203 7 2 i a 79
24,087,343 77 a 85
23,082,028 71 a 81
22,635,155 61| a 7 6 f
22,091,691 73 a 85
21,973,180 871 a 921
22,461,604 87 a 901
24,041,704 92 a 991
22,916,291 94 a 981
22,000,898 99 a 130
21,206,685 115 a 180
20,084,917 122 a 1761
21,234.354 144 a 185
21,033,912 150|al68f
21,051,896 144 al59
21,159,518 155 al611
21,080,309 152 al59£
20,794,268 155 al58
19,952,949 145 al57
20,136,547 131 al53
20,603,881 125 a l43
20,065,180 114 al30
20,065,180 100 al26
19,671,131 85 alCo
20,066,557 89 al06
20,522,032 99 al08
21,010,360 110 a ll5
21,078,307 109ial20£
21,740,327 121ial46
22,491,122 238 a260
21,438,959 209Ja225
20,248,716 2164a228A
20,273,919 225 a238
20,713,208 226Ja243J
20,863,768 223|a227|
20,600,441 211ia226

254,239

Total. . . . . 11,037,229 $49,882,515 12,484,145 49,571,731




* $500,000 to United States Treasury.

1865.]

65

Commercial Chronicle and Review.

A good deal of the export movement is due to the amount of gold stocks held
abroad. Of these it is estimated that §150,000,000 are there held, which would
involve a shipment of §9,000,000, or 25 per cent of the receipts from California.
The Secretary of the Treasury in his report states, however, that he had large
additional sums to pay abroad, and to meet them sent out §10,000v000 of stock
to sell, but failed in the negotiation, and was therefore compelled to send
§4,000,000 of gold from California for that purpose. The demand for travelers,
for remittances of emigrants, and for State and corporation interest and divi­
dends, form important items of remittance in addition to the payments on
account of imports. It was also the case that the Bank of France had been a
buyer of gold to aid in bridging over adverse exchanges, until the current of
trade set back. This accelerated the export hence. The whole export for the
year has been such as to diminish the amount here by perhaps §40,000,000.
The dealing in gold has become large, regular and permanent, and the fluctua­
tions in currency such that it has been necessary to confine exchange transac­
tions to the gold price, payable in gold, as is also the case with many leading
articles of importation. Under these circumstances the transportation and safe
keeping of the gold became onerous. The large dealers, therefore, by consent,
took a common depository—the Bank of New York—where all the gold that
arrives for the parties interested is deposited, and is transferred by certificate
from hand to hand, until wanted, for shipment, or for customs, when the holder
of a certificate draws it. This seems to be the initiation of a system like that
of the Bank of Hamburg, which grew out of a similar difficulty, viz., the per­
manent depreciation of the currency making it too unstable for purposes of
foreign commerce. Hence pure silver lodged with the Bank becomes the medium
of settling exchanges, and is termed “ banco,” in distinction of currency, which
bears an hourly varying “ agio.” The demand for exchange has been quite
limited, and the rates as follows :
KATES OF EXCHANGE.
London.

P a ris.

A m ste rd a m .

F r a n k fo r t.

H a m b u rg .

Jan. 2,. 166 a
166} 3 .3 8 } a 3 .3 4 } 6 2 } a 63 6 2 }
a 63}
“
9,. 166} a
167} 3 .3 8 } a 3.4 0 6 2 } a 63 6 2 }
a 63}
“
16,. 169} a
170} 3.30 a 3 .3 2 } 64 a 6 4 } 6 4 } a 6 4 } 5 6 }
“
23,. 170 a
171 3.31 a 3.33 6 4 } a 6 4 } 6 4 } a 65 6 6 }
“ 30, 171 a 172
3 .3 2 } a 3 .2 8 }
6 4 } a 6 4 } 64}
a 65
Feb. 6, 174 a 175 8 .2 6 } a 3 .2 3 } 6 5 } a 6 6 } 6 5 } a 66 58 a 5 8 }
“ 13, 173 a 174} 3 .2 7 } a 3 .2 3 } 65 a 65} 6 5 } a 65} 5 8 } a 5 8 }
20, 172} a 174 3 2 7 } a 3 .2 3 } 6 5 } a 6 5 } 65} a 6 5 } 5 8 } a 5 8 }
27, 1 7 3 } a l7 4 2 .2 6 } a 3.22 6 5 } a 6 5 } 6 5 } a 66 5S} a 5 8 }
5, 174} a 175} 3.25 a 3 .2 1 } 6 5 } a 6 6 } 66 a 6 6 } 5 8 } a 59
12, 177 a 178 3.15 a 3 .1 8 } 66 a 66} 67 a 6 7 } 59 a 59}
19, 176 a 177 3 .2 2 } a 3 .1 8 } 6 5 } a 6 6 } 66 a 6 6 } 5 8 } a 59
26, 179} a 182 3.15 a 3.10 6 7 } a 6 8 } 68 a 6 8 } 60} a 61
April 2, 177} a 181 3 .1 8 } a 3 .1 2 } 66} a 67
67 a 6 7 } 5 9 } a 60}
“
9, 184 a 185 3.08 a 3 .0 6 } 6 8 } a 69 6 8 } a 6 9 } 6 1 } a 62
“
16, 189 a 191 2 .9 7 } a 2.95
70 a 71
7 0 } a 71} 6 2 } a 64}
“
28, 190 a 192 3 .0 5 } a 2.95
7 1 } a 71} 7 1 } a 72 6 2 } a 63}
“
30, 195 a 198 2.90 a 2.85
73 a 74 73} a 7 4 } 65 a 66
May 7, 192 a 195 2 .9 6 } a 2.90
72 a 73
72} a 7 3 } 63} a 64}
“
14, 192 a 1S7 2.95 a 3.02
7 1 } a 7 0 } 71} a 71 62} a 63
“
21, 196 a 198 2.87} a 2.83}
74 a 7 5 } 7.3} a 75 65 a 66
“
28, 201 a 203} 2.81} a 2.77} 7 5 } a 76} 7 5 } a 76} 67 a 67}




B e r lin .

55}
a
B6 110}
55}
a
5 6 } 110
a
57} 112} a113}
a
57 112} a113}
57} a
57}
113} a
115 a 116
115} a 116
115} a 116
115} a 116}
116 a 117
117} a 118
116 a 117
120 a 121
118 a 120
121} a 122
127 a 128
124 a 125
130 a 131
126 a 127
124 a 125
130 a 131
134 a 135

06
June 4,
«<
11,
(( 18,
(C 25,
July 2,
tC 9,
« 16,
“ 23,
« 30,
Aug • 6,
U 13,
U 20,
u 27,
S e p t 3,
“ 10,
<(
IT.
24,
Oct. 1,
8,
«c 15,
“ 22,
29,
Nov ■ 5,
M
12,
19,
26,
Dec.. 3,
12,
19.
26,

Journal o f Banking, Currency, and Finance.

[January,

London
Am sterdam . Frankfort.
Paris ,
Berlin.
H am burg.
218 a 2 1 0 2 .7 2 $ a 2 .6 8 $ 78 a 79 7 7 $ a 74$ 68$ a 69 135 a 136
215 a 218 2.65 a 2.60
79 a 79$ 78 a 79 71$ a 72 143 a 144
216 a 219 2:64 a 2.88
79$ a 80$■80 a 80$ 72 a 73 145 a 145
235 a 238 2.37$ a 2.41$
86 a 87 . . a . .
76 a 77 154 a 155
270 a 295 2.15 a 1.92$
93 a 94 . . a . .
85 a 95 185 a 195
, , a . . 200 a215 96 a 98 1S4 a 188
292 a 298 1.95 a 1.87$
268 a 290 .Nominal.
. . a . . 101 a) 03 90 a 93 182 a 184
273 a 282 2 .1 0 a 2.01$
270 a 274$ 2 15 a 2.07$
a . . 98 alOO 88$ a 90$ 178 a 180
279 a 2S3 2.00$ a 2.00
. . a . . 103 al05 91 a 93 184 a 185
274 a 277 2,05 a 2.07$
91$ a 92$ 183 a 185$
278 a 279$ 2.06$ a 2.02$ 100 :1 1 0 2 $ 1 01 al03 9 1 f a 92$ 183 a 184
275 a 276 2.08$ a 2.05
90 a 90} 178 a 180
260 a 275 2.15 a 2.05
85 a 90$ 170 a 180
, , a . . 83 a 84 166 a 167
253 a 256 2.26 a 2.20
93 a 94
245 a 248$ 2.31$ a 2.27$
a ..
80$ a 81$ . . a . .
230 a 240 1.47$ a 2.35
a ..
a .•
83 a 90 76 a 80
208 a 210 2.75 a 2.68$
67$ a 68$ . . a . .
210
a ..
218 2.70 a 2.60
70 a 72
218 a 230 2.55 a 2.45
69 a 71
a . . 72 a 75 138 a 142
108 J a 109$ 5.16$ a 6.20
. . a . . 35$ a 36
40$ a 41
71 a 72
108} a 109 5.18$ a 6.22
35} a 36$ 7 1 $ a 72
1091 a 109$ 5.17$ a 5.25
40 a 41
40$ a'41 3 5 } a 36} 7 0 } a 72
1091 a 109$ 6.16$ a 5.25
40 a 41
40$ a 41$ 36$ a 36$ 70 a 72$
109$ a 109$ 5.25 a 5.16
40$ a 41$ 41 a 41$ 3 5 $ a 36
72 a 72$
109$ a 109$ 5.15 a 5.17$
. . . a ...
. a . . , . 35$ a 36$ 7 1 } a 72$
109$ a 109$ 5.15 a 5.17$
. . . a . . . 40$ a 41$ 36$ a 36$ 72 a 72$
109$ a 109$ 5.15 a 5.17$
. . . a ...
••. a . . . . 36$ a 36$ 72 a 72$
1094 a 109$ 5.161: a 5.17$
•. . a . . ,
• . . a . . . 36$ a 36$ 72 a 72$
1091 a 109$ 5.16^ a. 5.15
. . . a . . . . ,.. a . . . 36$ a 36$ . . a . .

The payment of the Federal interest, January 1, to the amount of about
$9,000,000, involves some remittances to foreign holders.

JOURNAL OF BANKING, CURRENCY, AND FINANCE.
STATE BA N K S COMING UNDER NATIONAL L A W — INCREASE OF NATIONAL BAN KS, AND TIIE NUMBER
ORGANIZED IN EACII S T A T E — INTEREST ON DEPOSITS— NEW Y O R K

BANK

RETURNS— RETURNS OF

THE BA N K S OF P H IL A D E L P H IA , BOSTON, MASSACHUSETTS, RHODE ISLAN D, OHIO,

AND

WISCONSIN

— CONDITION OF BANK OF ENGLAN D, AND RETURNS— BANK OF FRA N C E RETURNS.

I n our last number we remarked upon the fact that the Banks of Boston and
Philadelphia, with those of New York, were disposed, and some of them were
taking steps to come under the national law. This movement has since become
more general for reasons then stated, and the chances now are that all the State
Banks will merge themselves under the new law. The advantages to stockholders
in selling the gold on hand, dividing the surplus, and begining anew under a
system which never contempla'tes a return to specie payments, are apparently very
great. The progress of the Banks has been as follows :
N o . banks.

Oct 2 2 ..................................................
“ 29....................................................
Nov 5 ..................................................
* > ' 1 2 '...................................................
« 1 9 .....................................................




556
560
564
568
578

Capital.

$98,111,420
104,746,070
105,881,070
106,540,750
108,440,870

Circulation.

$56,858,036
58,734,180
60,450,100
62,350,320
64,529,470

1865.]

Journal o f Banking, Currency, and Finance.

Deo. 3 .....................................................
“ 19.....................................................
“ 17.....................................................

601
620
631

115,710,870
121,256,020
128,151,020

67
10,507,840
70,260,840
72,383,740

This rapid increase involves the adhesion of the old Banks to the new system,
into which the Comptroller of the currency confidently expects the absorption
of all of them. It was rumored, therefore, that the further formation of
new Banks had been discouraged by the Comptroller, and consequently he pub­
lished the following denial of the rumor :
“ The Comptroller has given no such notice. In view of the fact that State Banks
are being rapidly organized under the National Currency Act, and that in the Eastern
States there is no deficiency, but rather an excess of banking capital, he has considered
it to be his duty to discourage, in many instances, new organizations, and in more in­
stances, the increase o f the capital of those already in existence. It is the aim of
the Comptroller to introduce the National Bank note circulation without adding to the
present inflation; but it is not in his power to prevent new organizations, nor is it his
desire to do so, in places where the legitimate business of the country seems to re­
quire additional banking facilities.”

The Secretary of the Treasury in relation to the circulation of the old Banks
stated that the amount out in July, 1864, was 8144,000,000. To extend the
new system to $300,000,000 would involve an increase of $156,000,000 in the
currency, even if the old note circulation should be entirely withdrawn. The
old Banks, especially those in cities, hold stocks enough to lodge with the Comp­
troller for circulation without purchasing any more, and it is evidently for their
interest to utilize the stock by obtaining circulation for it. The number of
Banks in each State, November 25th, was given officially as follows :
NATIONAL BANKS.

State.
M aine............................
New Hampshire.........
Vermont.......................
Rhode Island...............
Massachusetts.............
Connecticut...................
New Y o r k ...................
Pennsylvania...............
New Jersey...................
D elaw are.....................
M aryland.....................
District o f Columbia . .
V irg in ia .......................
West Virginia..............
Ohio......... .....................
Kentucky.......................
Indiana.........................
Illinois..........................
Michigan.......................
Wisconsin.....................
Minnesota.....................
I o w a ............................
Nebraska Territory.. .
K ansas.........................
Missouri.......................
Tennessee.....................
Louisiana.....................
Total................. ..




No.
18
9
10
2
67
20
100
109
16
1
3
2
i
2
84
1
34
38
15
15
4
20
1
1
7
3
1

Capital stock paid in.

Circulation.

Bonds.

00
00
00
00
00
00
03
88
00
00
00
00
00
00
86
00
26
25
00
00
00
00
00
00
00
00
00

$1,887,880
552,700
1.311,800
414,000
12,536,850
4,084,050
12,584,950
10,193,830
1,756,170
200,000
1,245,000
477,000
95,000
140.000
7,605,880
162,000
3,148,400
3,396,560
797,800
774,500
442,000
945,900
27,000
49,000
722,000
234,380
180,000

$2,244,500
944,000
1,636,000
560,000
16,888,650
4,525,500
14,064,600
14,964,100
2,011,000
250,000
1,400,000
534,000
112,000
230,000
8,749,850
134,000
3,924,100
3,794,600
943,500
903,050
603,000
1,092,000
30,000
65,000
865,000
263,000
200,000

584

1108,964,597 28

$65,864,650

$81,961,450

$2,749,800
1,120,000
1,490,000
700,000
25,909,040
5,176,638
20,599,175
21,120,148
2,141,249
300,000
1,560,000
600,000
95,025
206,950
10,035,165
200,000
4,201,671
4,147,837
1,165,090
1,040,277
690,000
1,215,000
40,000
100,000
1,621,530
340,000
500,000

68

Journal o f Banicing, Currency, and Finance.

[January,

The business of the new Banks continues to be mostly Government transac­
tions. Those institutions are deemed fiscal aids to the Treasury. The city in­
stitutions employ large amounts of Bank balances, Government deposits, and
individual deposits, but at times like the present, when there is not much busi­
ness paper created, the employment for money is not so active in the usual chan nels. A t the same time there is a considerable amount of individual money un­
employed, which might be directed to the service of holders of United States
bonds. In this view the first National Bank of New York makes offers as fol­
lows :
“ Resolved, That this Bank confine its discounts to collateral loans on United States
securities, payable on call or at short dates, except in its dealings with corresponding
Banks, where advances on bills receivable may be proper.
“ Resolved, That this Bank issue to depositors, when so desired, deposit receipts
instead o f the ordinary Bank pass-book, such deposit receipts to be payable on de­
mand, and to bear interest at the rate of three per cent per annum on all amounts
from $100 to $1,000, and at the rate o f four per cent on all amounts of $1,000 and
upwards; but no interest shall be allowed on deposit receipts paid within fifteen
days from the date of issue.”

The operation of this is to draw into the Bank the funds of individuals, who
thus get their money employed at a fair rate of interest, and always on demand.
This issue of deposit receipts bearing interest, and payable on demand, is, we think,
a novel feature in Banks. It is of the nature of the Government deposit certifi­
cates, without the formality of ten days notice. The funds so attracted to the
Banks are employed in advances on United States stocks. The idea seems to be
to strengthen holders of those securities who may be in want of a temporary
loan.
The old Banks, as will be observed in the weekly returns, show a continual de­
cline of circulation, and in Boston and Philadelphia of specie, which it seems is
being gradually sold. The New York Bank returns are as follows :
NEW YORK BANKS.
N e w Y o k k B ank s.

Date.
January
“
“
«
“
February
4<

“
March
((
“
it

April
“
tc

“
({
May
it
it

(Capital, Jan., 1861, $---------------; Jan., 1863, $69,494,SI1?.)
L oa n s.

2,.
9,.
16,.
23,.
30,.
6,.
13,.
20,.
27,.
5,.
12,.
19,.
26,.
2,.
9,.
16,.
23,.
30,.
7,
14,.
21,
28,




S p e cie .

C ircu la tion .

N e t D e p o s its .

$114,714,465 $25,161,935 $6,103,331 $140,250,856
173,009,701 25.122.002 6,032,546 134.861.977
165,991,170 23,S34,264 6,008,182 130,311,046
162,925,880 24,077,513 5.049.807 130,136,203
162,296,896 24,203,632 5,913,558 130,665,415
163,076,846 24,070,791 5,974,762 133,849,042
165,090,329 23,521,453 5,916,707 140,464,616
168,302,935 22,523,918 5,908,394 148,014,106
174,928,205 22,301,687 5,907,851 154,S75,059
182,317,378 21,188,034 5,937,167 158,999,668
189,757,746 20,750,405 5.918.807 168.044.977
198,229,513 21,059,542 5,889,197 169,637,975
199,372,437 20,425,504 5,514,139 168,315,904
203,993,131 19,526,665 5,708,908 171,151,297
204,333,192 20,924,287 5,804,511 170,513,020
198,703,699 21,687,670 5.779,650 168,350,790
196,286,723 24.868.003 5,679,947 161,978,166
194,157,495 24,087,343 5,626,978 164,578,919
192881,246 23,082,028 5,594,832 168,562,197
194,178,921 22,635,155 5,482,357 174,426,682
197,356,939 22,091,691 5,367,355 173,111,884
195,813,462 21,973,180 5,240,812 171,765,696

C learings.

$300,753,147
387,546,217
416,962,806
460,811,543
427,306,608
425,430,985
467.751.745
514,887,411
575,442,304
518,951,433
688,822,273
618,338,858
676,253.989
670.372.745
658,352,112
646,593,643
672,442,840
446,587,420
410,052,013
413,562,127
486,884,114
410,972,198

Journal o f Banking, Currency, and Finance.

1865.]
D ate.

Jane

4 ,..

tt

11, . .

H
“
July

1 8 ,..
2 5 ,..
2 ,..
9 ,..
1 6 ,..
2 3 ,..

a
tt
tt
ft

A u gust

s o ,..
6, . .
1 3 ,..
2 0 ,..
2 7 ,..

it
“

September

8, . .
1 0 ,..
1 7 ,..
2 4 ,..

*•

“

October

1, . .
8 ,..
1 5 ,..
2 2 ,..
2 9 ,..
5 ,..
1 2 ,..
1 9 ,..
2 6 ,..
3 ,..
1 0 ...
1 7 ...

ft
“
"

Nov.

44
ft

“

Dec.
ft
ft

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

Specie.
2 2 ,4 6 1 ,6 0 4
2 4 ,0 4 1 ,7 0 4
2 2 ,9 1 6 ,2 9 1
2 2 ,0 0 0 ,9 8 8
2*1,206,685

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

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

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

69

N et D eposits.
1 7 4 ,5 1 6 ,3 6 7
1 7 2 ,5 3 7 ,2 4 8

Clearings.
4 7 7 ,6 4 8 ,2 0 7
4 4 5 ,5 1 9 ,1 6 5

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

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

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

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

The increase in loans is due to the Government loans taken by the institutions
during the month. This case is the same with regard to the Banks of Boston
and Philadelphia.
The following arc the returns of these Banks :
PHILADELPHIA BANKS.
P h il a d e l p h ia B a n k s.
D ate.

Jan. 4 ,..
“
11,..
“
18,..
“ 25 ,..
Feb. 1 ,..
Feb. 8 ,..
“ 15,-.
“
2 2 ,..
“ 29,..
Mar. 7 ,..
Mar. 14,..
“
21,..
“ 2 9 ,..
April 4 ,..
“
11,-.
“
18,..
“ 2 5 ,..
May 2 ,..

“

9,-.

“
“

1 6 ,..
2 8 ,..
S O ,..

L oa n s.
$ 3 5 ,6 9 8 ,8 0 8
3 5 ,4 5 8 .9 6 7
3 4 ,8 9 6 ,8 4 2
3 4 ,8 4 9 ,9 5 9
3 4 ,3 4 5 ,1 2 6
3 4 .1 4 6 .6 7 7
3 4 ,5 9 0 ,8 8 0
3 5 ,0 5 9 ,6 7 6
8 5 ,5 1 9 ,7 0 4
3 5 .9 1 3 .3 3 4
3 5 .9 5 6 .6 7 8
3 6 ,4 1 2 ,9 2 3
3 6 ,6 9 5 ,4 1 5
3 7 ,2 6 2 ,2 2 0
3 7 ,0 3 2 ,1 1 0
3 9 .5 3 5 .3 3 4
3 9 ,5 7 0 ,5 6 7
3 9 .7 7 0 .4 3 6
3 9 .6 3 9 .4 3 6
3 9 .2 6 2 .6 9 5
3 9 .6 3 9 .4 3 6
3 9 .2 6 2 .6 9 5




( C a p it a l , J a n ., 1 8 6 3 , $ 1 1 , 1 4 0 , 0 8 0 ; 1 8 6 2 , $ 1 1 , 9 7 0 , 1 3 0 . )
D ue
D ue
S p e c ie .
C ir c u la t io n .
D e p o s it s .
t o banks, from banks.
$ 4 ,1 5 8 ,5 8 5 $ 2 ,0 5 5 ,8 1 1 $ 2 9 ,8 7 8 ,9 2 n $ 4 ,3 1 6 ,7 6 3 $ 2 ,9 6 3 ,5 6 3
4 ,1 5 8 ,2 3 5
2 ,0 5 0 ,8 9 1
3 0 ,4 8 4 ,2 2 7
4 ,0 0 1 ,4 7 3
2 ,8 1 4 ,1 8 8
4 ,1 6 8 ,1 2 5
3 1 ,1 9 4 ,8 5 1
2 ,0 4 4 ,4 2 7
4 ,3 3 0 ,1 2 0
3 ,0 6 3 ,1 4 8
4 ,1 0 3 ,0 6 5
2 ,0 4 7 ,8 4 6
3 2 ,3 5 4 ,2 5 3
3 ,5 0 0 ,6 9 3
2 ,9 0 5 ,9 2 1
4 ,1 0 8 ,1 0 9
2 ,0 5 6 ,5 3 2
3 2 ,0 2 7 ,1 4 7
3 ,4 5 3 ,4 3 1
3 ,2 7 1 .3 0 6
4 ,1 0 2 ,6 7 1
2 ,0 6 6 ,0 6 9
3 1 ,0 3 3 ,0 3 0
4 ,0 8 0 ,0 6 9
2 ,4 6 1 ,8 7 3
4 ,1 0 2 ,7 4 8
2 9 ,9 1 1 ,7 0 4
2 ,0 6 9 ,0 6 1
4 .3 2 2 ,6 0 9
2 ,0 8 0 ,7 5 0
4 ,1 0 2 ,5 8 8
3 0 ,7 8 3 ,7 4 1
2 ,1 1 9 ,4 8 8
4 ,4 6 3 ,7 5 1
2 ,0 9 9 ,7 7 8
4 ,1 0 2 ,8 4 8
2 ,1 6 7 ,3 4 8
3 1 ,4 3 5 ,7 5 3
4 ,8 3 7 ,2 6 4
2 .1 1 4 .2 2 7
4 ,1 0 2 ,6 3 2
2 ,2 0 8 ,4 9 2
3 1 ,7 1 2 ,5 4 7
5 ,3 2 3 ,3 1 6
2 ,1 1 6 ,0 4 2
4 ,0 9 9 ,7 0 7
2 ,3 0 8 ,2 5 0
3 2 ,5 1 1 ,4 0 5
5 ,5 0 8 ,1 4 6
2 ,3 3 3 ,8 1 9
4 ,0 9 9 ,6 6 4
2 ,3 4 0 ,1 8 2
3 2 ,8 3 5 ,0 3 8
6 ,9 3 3 ,9 7 4
2 .4 2 8 .2 2 7
4 ,0 9 6 ,4 0 1
2 ,3 5 7 ,7 6 8
3 3 ,1 5 6 ,4 9 6
5 ,7 9 1 ,1 9 1
2 ,7 2 4 ,9 3 5
4 ,0 9 5 ,4 9 5
2 ,3 9 0 ,0 9 2
3 4 ,4 0 4 ,6 0 7
5 ,6 4 1 ,6 3 8
3 ,4 2 5 ,8 0 5
4 ,0 9 3 ,4 6 1
3 5 ,9 5 8 ,4 4 4
2 .3 7 9 .8 2 7
6 ,8 5 5 ,2 7 7
3 ,7 9 9 ,1 5 1
2 ,3 2 9 ,5 9 0
3 8 ,1 7 4 ,0 4 6
4 ,0 9 5 ,3 8 7
5 ,7 4 8 ,2 5 7
3 ,2 9 1 ,1 7 6
4 ,0 9 5 ,4 7 5
2 ,2 5 8 ,3 8 6
8 7 ,3 9 3 ,2 4 7
6 ,0 6 7 ,9 6 6
2 ,5 9 2 ,4 6 5
3 ,9 7 2 ,3 4 9
2 ,2 4 1 ,8 8 5
3 7 ,7 5 8 ,8 3 6
6 ,3 7 4 ,5 3 1
2 ,7 3 0 ,5 4 0
3 .9 6 7 .2 6 3
2 .1 5 2 .8 2 7
3 7 .4 6 6 .3 1 1
6 .6 3 6 .5 7 6
2 .7 8 6 .0 8 0
3 .9 6 4 .5 2 2
2 .1 3 1 .9 1 9
3 7 .6 3 8 .8 1 4
6 .5 8 0 .5 4 8
2 .8 5 3 .8 9 4
3 .9 6 7 .2 6 3
3 7 .4 6 6 .3 1 1
2 .1 5 2 .8 2 7
6 .6 3 6 .5 7 6
2 .7 8 6 .0 8 0
3 .9 6 4 .5 2 2
2 .1 3 1 .9 1 9
3 7 .6 3 8 .8 1 4
6 .5 8 0 .5 4 8
2 .8 5 8 .8 9 4

Journal o f Banking, Currency, and Finance.

70
June 7 , . . .
II
1 4 ,...
It
2 1 ,...
« 2 7 ,...
Jnlv 4 , . . .
It
1 1 ,...
It
1 8 ,...
II
2 6 ,...
Aug. 2 , . . .
«
9 ,...
« 1 6 ,...
24,. ..
II
31,.. .
Sent. 7 , . . .
ti 1 4 ,...
(( 2 1 ,...
It
2 7 ,...
Oct. 3 , . . .
« 1 0 ,...
1 7 ,...
(I
2 0 ,...
2 7 ,..
Nov. 7 , . . .
II
1 4 ,...
II
2 1 ,...
II
2 8 ,...
Dec. 5 ,...
“ 1 2 ,...

39,723,493
40,286,433
40,286,488
42,057,758
40,918,009
40,717,527
40,731,824
42,057,758
39,277.980
39,142,449
39,353,341
39,401,423
39,778,594
40,331,268
40,885,872
42,404,383
41,839,955
41,152,335
40,541,371
40,867,864
41,105,615
41,598,194
41,763,747
42,844,878
48,792,297
44,170,412
44,810,135
45,336,381

3,694,320
3,964,758
3,964,529
3,963,640
3,955,836
3,949,105
3,948,440
3.963,640
3,962,3S5
3,962,367
3,962,313
3,962,154
3,972,413
3,962,395
3,962,353
3,961,342
3,960,464
3,910,436
3,940,409
3,940,341
3,663,670
3,496,143
3,058,994
2,743,641
2,674,037
2,539,218
2,473,419
1,983,502

2,100,927
2,077,753
2,074,273
2,092,470
2,154,258
2,337,651,
2,208,068
2,092,470
2,249,226
2,231,394
2,214,929
2,222.401
2,361,745
2,454,060
2,524,005
2,574,571
2,610,809
2,626,884
2,603,851
2,581,607
2,554,604
2,519,385
2,455,776
2,406,652
2,355,768
2,315,263
2,321,109
2.356,673

38,249,800
38,367,171
37,588,203
39,122,865
37,945,305
37,312,423
36,462,271
39,122,865
36,520,768
37,234,436
36,826,674
35,869,084
35,603,148
34,981,281
35,039,636
35,913,425
34,838,109
34,649,193
34,968,886
35,559,796
37,102,885
37,425,689
36,943,993
37,705,036
39,227,713
38,974,932
38,462 084
39,622,645

5,993,116
5,930,707
6,408,664
6,544,668
6,225,952
6,197,570
6,189,843
6,544,668
6,059,048
5,992,712
5,801,231
5,738,141
6,070,333
6,119,371
6,071,768
6,031,204
6,121,101
6,351,204
6,336,490
6,745,828
6,582,950
6,469,666
6,000,000
6,000,000
. ......................

[January,
3,186,259
3,007,283
2,998,548
3,139,132
4,325,450
4,658,667
3,616,992
3,139,132
3,816,165
3,785,896
3,691,201
3,891,137
8,704,273
3,419,624
3,047,313
3,081,281
3,057,381
3,158,271
3,268,360
3,126,082
3,302,433
3,554,675
3,000,000
3,000,000
...............

BOSTON BANKS.

Boston B anks . ( Capital, Jan., 1863, 838,231,700 ; Jan., 1S62, $38,231,700.)
S pecie.
Loans.
D ate.
J a n . 4 , . . $ 7 6 ,8 0 5 ,3 4 3 $ 7 ,5 0 3 ,8 8 9
II
7 7 ,7 4 7 ,7 8 4
7 ,5 3 1 ,1 9 5
1 1 ,..
II
7 ,4 6 4 ,5 1 1
7 5 ,8 7 7 ,4 2 7
1 8 ,..
(1
7 4 ,1 4 6 ,0 0 0
7 ,4 4 0 ,0 0 0
2 5 ,..
7 3 ,9 5 9 ,1 7 5
7 ,3 8 5 ,4 1 3
1 ,..
F eb
II
7 1 ,7 6 5 ,1 2 2
7 ,2 6 5 ,1 0 4
8 ,..
4<
7 1 ,0 8 8 ,8 4 9
7 ,2 2 4 ,9 2 4
1 5 ,..
(I
7 1 ,0 7 4 ,0 0 0
7 ,2 1 5 ,6 0 0
2 2 ,..
II 2 9 , . .
7 2 ,1 8 9 ,0 0 3
7 ,1 7 9 ,3 1 0
7 2 ,6 8 7 ,3 6 3
7 ,1 0 8 ,5 1 9
M ar.. 7 , . .
II 1 4 , . .
7 ,0 5 2 ,1 8 1
7 2 ,1 0 5 ,1 1 1
It 2 1 , . .
7 3 ,2 0 7 ,1 2 1
7 ,0 3 3 ,7 2 1
« 2 8 ,..
7 3 ,4 8 5 ,5 1 4
7 ,0 1 6 ,0 8 6
6 ,8 5 6 ,7 0 8
7 1 ,8 3 8 ,5 0 6
A p ril 4 ,..
« 1 1 ,..
7 2 ,6 2 0 ,3 4 8
6 ,9 3 2 ,1 9 2
6 ,8 6 9 ,7 2 6
7 2 ,3 2 8 ,8 9 6
1 8 ,..
II 2 5 , . .
6 ,9 5 2 ,4 9 8
7 2 ,5 3 8 ,6 1 1
6 ,6 4 2 ,7 9 8
7 1 ,2 7 0 ,1 8 1
May 2 , . .
«
6 9 ,4 7 1 ,4 8 1
6 ,7 1 6 ,4 8 4
9 ,..
l« 1 6 , . .
6 8 ,8 8 8 ,5 8 1
6 .6 4 4 ,4 9 3
II 2 3 , . .
6 6 ,6 8 3 ,5 1 0
6 ,5 7 3 ,1 8 1
II 3 0 , . .
6 9 ,2 0 1 ,3 0 1
6 ,5 4 1 ,2 0 1
6
,5 0 9 ,1 8 1
June 7 , . . , 6 7 ,0 9 3 ,5 0 0
« 1 4 ,.,.
6 7 ,9 4 2 ,4 0 0
6 ,5 2 4 ,2 0 7
<i 2 1 . . . ,
6 8 ,8 8 0 ,1 2 1
6 ,5 0 7 ,0 2 1
u 2 8 ...
6 ,4 7 0 ,6 0 0
6 9 ,6 9 1 ,0 0 0
July 5 , . . 6 6 ,9 5 0 ,1 1 1 6 ,2 9 0 ,5 2 1
( 1 2 ,..
6 ,3 0 1 ,1 0 1
6 6 ,4 5 2 ,1 0 7
H
6 ,2 4 6 ,2 1 1
6 6 ,0 7 9 ,0 0 0
1 9 ,..




Due
D ue
fro m banks.
C ircu la tio n ,
t o banks.
D e p o s its .
$ 9 ,6 2 5 ,0 4 3 !$ 3 2 ,5 2 5 ,6 7 9 $ 1 2 ,8 3 1 ,0 0 0 \$ 1 2 ,3 5 1 ,5 0 0
1 1 ,0 1 9 ,0 0 0
1 0 ,1 8 5 ,6 1 5
1 2 ,7 0 3 ,6 0 0
3 1 ,5 2 4 ,1 8 5
1 1 ,7 6 9 ,0 0 0
1 2 ,0 4 1 ,0 0 0
9 ,9 6 3 ,3 8 9
3 1 ,1 5 1 ,2 4 0
1 2 ,2 2 7 ,0 0 0
9 ,7 2 9 ,0 0 0
1 1 ,1 0 6 ,7 0 0
3 0 ,8 9 3 ,0 0 0
1 1 ,8 6 4 ,5 0 0
9 ,6 6 0 ,1 6 3
3 0 ,6 5 5 ,7 8 2
1 0 ,8 2 5 ,0 0 0
1 2 ,2 7 2 ,0 0 0
1 1 ,3 1 5 ,0 0 0
9 ,5 7 9 ,0 2 0
3 0 ,0 3 0 ,2 9 2
1 3 ,4 4 8 ,0 0 0
1 1 ,6 1 5 ,0 0 0
9 ,7 4 1 ,4 7 1
8 0 ,4 1 2 ,6 4 7
1 4 ,9 2 5 ,4 0 4
9 ,4 1 1 ,0 0 0
1 1 ,3 2 9 ,6 0 0
3 1 ,8 3 1 ,0 0 0
1 6 , 1 8 9 ,7 2 0
9 ,3 7 1 ,4 4 0 3 3 ,1 5 5 ,8 8 8
1 2 ,2 2 4 ,6 0 3
1 6 ,5 3 5 ,9 9 2
9 ,6 0 6 ,3 1 8
1 2 ,3 1 3 ,8 2 9
3 3 ,6 8 8 ,0 1 7
1 7 ,3 1 5 ,2 3 1
9 ,4 9 0 ,3 1 1
3 3 ,8 9 1 ,2 0 4
1 2 ,7 0 4 ,1 8 1
9 ,5 4 8 ,2 1 1
1 7 ,2 6 6 ,7 4 1
3 5 ,0 9 0 ,1 8 1
1 3 ,0 9 2 ,5 3 1
9 ,2 1 0 ,0 9 6
3 4 ,8 5 9 ,5 0 8
1 3 ,3 5 2 ,7 0 6
1 7 ,0 7 1 ,7 3 1
9 ,4 4 2 ,0 S 2
3 2 ,8 6 1 ,6 0 9
1 3 ,6 0 1 ,0 0 5
1 5 .7 8 6 ,0 9 2
1 0 ,4 4 7 ,9 1 6
3 3 ,3 2 4 ,9 7 8
1 5 ,0 9 4 ,3 6 0
1 7 ,3 6 2 ,3 7 1
1 0 ,3 3 1 ,8 0 6
3 3 ,5 1 0 .0 5 4
1 7 ,0 5 4 ,2 4 4
1 4 ,4 4 7 ,9 9 7
1 0 ,9 3 8 ,9 9 1
1 4 ,7 1 5 ,9 3 1
3 1 ,8 1 0 ,9 7 1
1 5 ,7 9 0 .4 9 8
1 0 ,1 2 7 ,0 9 7
3 1 ,4 6 1 ,4 9 9
1 4 ,2 0 6 ,5 8 1
1 4 ,2 0 6 ,5 9 2
1 0 ,5 2 1 ,5 9 1
3 1 ,1 7 2 ,5 8 4
1 2 ,8 0 1 ,0 0 0
1 6 ,2 3 9 ,0 0 0
1 0 ,1 2 6 ,4 7 3
3 1 ,6 3 3 ,0 7 1
1 2 ,5 0 0 ,6 7 1
1 6 ,2 0 1 ,0 8 3
9 ,8 9 9 ,1 9 3
3 6 ,6 0 5 ,1 8 1
1 1 ,8 7 1 ,7 1 9
1 5 ,7 3 3 ,6 9 1
9 ,6 8 1 ,2 0 4
8 4 ,3 9 1 ,2 0 8
1 1 ,1 0 1 ,3 0 7
1 5 ,9 2 5 ,2 0 1
9 ,1 6 0 ,6 2 1
3 2 ,7 7 1 ,8 2 1
1 0 ,8 7 5 ,1 8 1
1 6 ,1 3 0 ,7 2 0
8 ,7 7 1 ,1 8 1
3 3 ,3 0 5 ,2 2 0
1 0 ,7 1 0 ,0 8 9
1 5 ,0 5 7 ,1 3 1
8 ,9 8 3 ,1 2 1
3 2 ,7 4 0 ,2 0 1
1 1 ,6 8 1 ,6 0 2
1 4 ,7 9 0 ,0 1 2
9 ,0 6 8 ,7 1 2
3 0 ,8 6 5 ,1 0 1
1 2 ,2 6 0 ,0 8 0
1 2 ,8 7 2 ,1 1 1
9 ,5 7 4 ,0 0 9
2 9 ,9 4 0 ,1 0 2
1 1 ,8 S 9 ,3 1 2
1 3 ,8 0 9 ,0 0 2
9 ,9 8 6 ,4 9 1
3 2 ,2 6 0 ,0 0 4
1 1 ,3 0 6 ,0 0 2
1 3 ,4 3 4 ,5 2 8
9 ,8 9 0 ,0 8 1
3 0 ,5 8 4 ,1 0 1
1 0 ,0 0 3 ,1 8 1
1 3 ,9 4 2 ,0 0 1

1865.]
Date.
2 6 ,..
Aug 2 ,. .
“
9 ,..
« 1 6 ,..
(«
2 3 ,..
«(
3 0 ,..
Sept. 6 , . .
“ 1 3 ,..
« 2 0 ,..

n

Oct.

Journal o f Banking, Currency, and Finance,
Loans.
5 9 ,9 7 3 ,5 1 1
5 9 ,7 6 0 ,3 9 8
6 0 ,6 5 5 ,1 8 1
6 1 ,1 7 5 ,2 1 1
6 1 ,8 1 7 ,0 0 2
6 1 ,9 6 0 ,4 8 1
6 2 ,2 1 1 ,9 3 1

2 7 ,..
4 ...

“ 1 1 ,..
«<
1 8 ,..
u 2 5 ,..
u
3 1 ,..
Nov . 8 , . . ,
“
1 5 , ., .
“
2 2 ,. .
<(
2 8 ,. .
Dec1. 5 ,. ,
U 1 2 ,. .

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

D ue
Specie.
C irculation.
D eposits.
to banks.
5 ,7 3 3 ,0 1 0
9 ,7 7 5 ,4 8 1
9 ,1 5 1 ,1 1 1
2 7 ,9 0 5 ,4 9 1
5 ,7 2 9 ,4 3 1
9 ,3 2 7 ,1 0 1
2 7 ,8 6 6 ,2 0 1
8 ,9 4 7 ,0 2 1
5 ,7 3 4 ,1 0 1
9 ,6 8 5 ,6 7 1
9 ,8 4 2 ,6 2 1
2 7 ,8 0 6 ,0 3 0
5 ,6 6 5 ,9 8 1
2 7 ,7 7 3 ,8 2 1
9 ,5 3 8 ,8 4 1
9 ,8 5 5 ,9 2 1
5 ,6 6 0 ,9 1 1
9 ,5 6 7 ,9 2 1
2 7 ,2 2 1 ,7 3 1
1 0 ,0 5 2 ,8 7 1
6 ,6 8 1 ,8 7 1
9 ,6 3 0 ,0 0 0
2 6 ,4 9 5 ,1 0 0
1 0 ,1 1 0 ,0 0 0
5 ,7 4 4 ,8 9 8 1 0 ,1 0 0 ,4 0 0
2 5 ,8 8 4 ,4 8 7
1 0 ,5 3 5 ,0 0 0
5 ,7 8 9 ,0 3 3 1 0 ,2 7 4 ,8 5 2
2 5 ,0 1 5 ,2 3 0
1 0 ,1 5 2 ,9 7 9
2 4 ,7 2 2 ,8 9 1
5 ,8 2 0 ,6 7 1 1 0 ,4 2 0 ,8 1 0
1 0 ,6 3 0 ,0 0 0
5 ,6 3 7 ,9 2 1 1 0 ,2 8 0 ,4 3 1
2 3 ,5 8 2 ,9 8 1
1 0 ,9 5 8 ,7 8 1
5 ,5 3 9 ,0 0 0 1 0 ,3 1 6 ,9 9 1
2 4 ,3 8 4 ,5 8 1
9 ,6 6 4 ,4 8 1
5 ,3 9 1 ,1 0 1 1 0 ,8 0 4 ,8 5 7
2 3 ,9 1 8 ,3 8 1
7 ,7 8 4 ,4 5 1
6 ,3 6 1 ,5 8 1
8 ,9 9 8 ,1 8 1
2 4 ,0 1 8 ,5 7 2
7 ,8 2 7 ,9 1 1
5 ,3 0 7 ,4 8 1
9 ,6 1 9 ,6 8 2
9 ,9 3 4 ,3 1 1
2 4 ,5 0 0 ,6 8 9
5 ,2 2 5 ,5 9 1
7 ,6 4 7 ,4 2 1
9 ,1 9 7 ,4 7 1
2 4 ,0 0 9 ,5 3 1
4 ,9 6 7 ,7 8 1
9 ,0 0 0 ,0 0 0
2 1 ,3 8 4 ,0 0 1
6 ,8 9 3 ,9 1 0
4 ,7 8 7 ,1 8 2
9 ,0 4 6 ,9 3 1
2 2 ,0 2 3 ,4 7 8
6 ,7 8 5 ,5 2 1
4 ,4 2 9 ,7 0 0
9 ,0 5 8 ,3 8 1
2 0 ,2 1 9 ,4 2 1
5 ,3 7 5 ,5 8 1
4 ,4 2 9 ,8 2 1
9 ,O SS,101
2 0 ,2 1 9 ,4 9 1
5 ,3 7 5 ,5 8 2
4 ,0 9 4 ,6 7 2
8 ,4 8 0 ,9 2 1
2 1 ,1 2 9 ,4 2 1
5 ,2 8 9 ,1 2 1
3 ,3 5 3 ,1 2 1
8 ,1 9 0 ,2 3 1
2 2 ,5 7 2 ,4 8 1
5 ,3 9 5 ,8 2 1

71
Due
from banks.
1 3 ,4 7 3 ,6 2 1
1 3 ,0 3 9 ,5 8 7
1 3 ,2 6 1 ,6 5 4
1 2 ,7 9 8 ,8 2 1
1 2 ,0 0 7 ,4 8 1
1 1 ,6 1 8 ,9 8 1
1 1 ,5 2 6 ,0 1 1
1 1 ,1 4 2 ,9 3 0
1 1 ,2 3 7 ,0 8 0
1 0 ,1 9 7 ,6 9 1
1 1 ,4 7 6 ,5 8 1
1 0 ,0 1 7 ,7 9 2
9 ,8 7 9 ,7 2 1
7 ,9 0 1 ,4 2 1
8 ,6 6 9 ,4 3 9
8 ,1 6 7 ,8 9 2
8 ,7 3 1 ,7 9 9
8 ,8 8 9 ,4 2 1
8 ,8 8 9 ,4 2 1
1 0 ,1 0 9 ,5 9 1
1 1 ,6 4 0 ,4 8 1

The returns of the Banks of Massachusetts for the four weeks to October 1st,
compared with two previous returns, were as follows :
July
Aug.
Oct.
Dec.

1....
1----1....
5....

Loans.
5 6 ,6 2 8 ,3 7 6
5 6 ,4 8 7 ,7 2 7
5 3 ,4 7 2 ,3 2 6
6 1 ,8 3 9 ,7 6 2

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

Circulation.
2 1 ,6 9 4 ,3 6 6
2 1 ,7 4 8 ,7 6 1
2 2 .2 2 1 ,0 6 3
2 1 ,4 8 8 ,2 6 6

D eposits.
1 3 ,1 4 1 ,7 8 7
1 2 ,5 8 5 ,8 1 0
1 2 ,1 5 7 ,2 1 6
1 2 ,1 6 4 ,0 9 6

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

The following statement of the condition of the Banks of Rhode Island is
taken from the returns made to the State Auditor on the 5th inst.:
Capital
Circulation
Specie........
Loans . . . .
Deposits . .

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

The following is a comparison of the leading items of the Banks of Ohio, as
appeared by their returns made on the 1st of November, in the years indicated :
Stock............................
Specie...........................
Loans.......................... .
Circulation.....................
Deposits........................

1864.
N ov. 1.
$ 4 ,4 0 8 ,8 2 0
1 ,1 8 0 ,8 0 2
9 ,4 2 6 ,9 9 4
5 ,1 1 6 ,4 7 1
1 1 ,1 1 5 ,8 1 8

1863.
N ov. 1.
$ 5 ,0 5 2 ,9 4 0
1 ,8 2 8 ,5 9 1
1 1 ,3 6 6 ,4 5 1
6 ,6 5 2 ,3 1 1
1 1 ,4 0 5 ,4 3 9

1862.
N ov. 1.
$ 5 ,5 3 9 ,9 6 0
3 ,3 7 0 ,1 3 1
1 1 ,2 9 5 ,9 8 7
1 0 ,0 3 3 ,3 2 6
9 ,8 1 4 ,0 0 9

1861.
N ov. 1.
$ 5 ,6 9 0 ,4 5 0
3 ,0 4 7 ,2 5 1
1 0 ,7 5 0 ,8 6 2
9 ,5 2 2 ,4 9 3
5 ,6 6 4 ,2 9 2

The December statement of the Banks of Wisconsin compare with the returns
of the previous month as follows :
Circulation of Banks.................................
Circulation of Banks winding n p .............

N ov. 1.
$2,55*2,780
8 9 ,3 5 6

D ec. 1.
$ 2 ,6 0 7 ,8 9 4
8 3 ,4 7 8

Total circulation............... .
United States and State securities.
Treasury notes on hand...................
Specie ........................................

$ 2 ,6 4 2 ,1 3 6
2 ,5 1 1 ,8 8 0
1 7 8 ,6 6 1
1 1 ,8 1 1

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




72

Journal o f Banking, Currency, and finance.

[January,

In the first week of November, the favorable state of the exchanges which
had been developing itself since the rise in rate of interest to 9 per cent, Sept. 8,
was so far advanced that the Bank of England felt justified in reducing its rate
to 8 per cent, notwithstanding that some considerable failures in France, and
symptoms of weakness elsewhere, suggested caution. The export demand for
bullion had, however, closed, and speculation had subsided in face of the accu­
mulating stocks of goods and produce in bond, caused by the dearness of money
and the idea that the dearness would result in lower prices. The higher rate
had caused a large number of liabilities to be settled, and had attracted money
from abroad. The impulse once given in that direction, the accumulation of
means was continuous.
On the 23d of November the bullion had increased §5,000,000, and the Bank
made a farther reduction of the rate of interest to 7 per cent.
The returning ease of money was, however, already producing a reaction in
the current. Several new loans were announced— an Egyptian loan and a
Danubian loan—the latter for §5,000,000 at 86 for 7 per cent interest; also, a
Danish loan of §4,000,000 5 per cent at 94^. These, with the movements of
trade, caused a renewed export of bullion.
The Bank returns were as follows :
THE BANK OF ENGLAND KETUENS.

D ate.
D ec. 2 , . . .
“
9 ,...
“
1 6 ,...
2 3 ,...
“
3 0 ,...
Jan . 6, ’ 64
“
1 3 ,...
“
2 0 ,...
“
2 7 ,...
F eb.

3 ,...
1 0 ,...
“
1 7 ,...
“
2 4 ,...
M arch 2 , . . .
*‘
9 ,...
“
1 6 ,...
“
2 3 ,...
“
3 0 ,...
A p r il 6 , . . .
“
1 2 ,...
«
2 0 ,...
“
2 7 ,...
M ay
4 ,...
1 1 ,...
“
1 8 ,...
“
2 5 ,...
J une 1 ..• «
»
8 ,.. .
“
1 5 ,...
“
2 2 ,...
“
2 9 ,...
J u ly
“

6 ,...
1 3 ,...

C ircu la tio n .
2 1 ,6 8 5 ,7 3 2
2 0 ,8 0 1 ,2 0 7
2 0 ,3 8 2 ,7 6 4
2 0 ,2 7 3 ,7 9 9
2 0 ,6 8 6 ,5 3 8
2 1 ,3 2 2 ,3 0 4
2 1 ,3 9 6 ,4 2 0
2 1 ,4 4 5 ,7 9 3
2 0 ,8 7 5 ,8 2 5
2 1 ,1 6 2 ,6 2 6
2 0 ,7 0 8 ,1 1 3
2 0 ,6 9 6 ,1 7 2
2 0 ,2 0 7 ,8 7 1
2 0 ,8 4 0 ,3 7 4
2 0 ,5 6 3 ,3 2 5
2 0 ,3 3 3 ,1 1 2
2 0 ,3 6 6 ,7 0 5
2 0 ,9 0 8 ,6 4 4
2 1 ,5 2 8 ,9 1 4
2 1 ,7 8 5 ,5 9 7
2 1 ,6 7 2 ,7 8 3
2 1 ,4 8 4 ,6 0 2
2 2 ,0 4 5 ,7 9 2
2 1 ,4 7 8 ,9 8 7
2 1 ,3 1 3 ,3 5 2
2 0 ,8 6 8 ,0 4 7
2 1 ,2 4 6 ,8 4 0
2 0 ,7 6 6 ,4 0 5
2 0 ,5 9 7 ,5 5 7
2 0 ,6 2 8 ,2 0 7
2 1 ,1 5 3 ,6 0 6
2 1 ,8 9 0 ,0 6 3
2 2 ,1 6 1 ,0 0 1




P u b lic
D eposits.
7 ,2 3 4 ,8 9 4
8 ,6 2 9 ,8 5 6
9 ,1 0 3 ,7 3 8
1 0 ,2 6 6 ,5 4 6
1 0 ,8 4 1 ,9 9 1
1 0 ,0 0 1 ,9 8 2
5 ,2 6 4 ,0 9 7
5 ,6 8 9 ,0 7 4
6 ,3 3 7 ,2 4 6
6 ,7 4 8 ,8 6 7
7 ,2 5 4 ,6 8 2
7 ,0 7 9 ,7 8 9
8 ,1 5 3 ,6 0 1
7 ,8 9 3 ,6 3 3
8 ,8 6 3 ,3 6 4
8 ,6 7 0 ,7 1 1
9 ,8 4 1 ,3 2 3
1 0 ,2 8 0 ,4 5 8
9 ,8 1 8 ,8 8 0
5 ,9 2 9 ,9 2 2
5 ,7 8 7 ,3 2 9
6 ,2 1 7 ,9 6 5
6 ,9 8 1 ,1 3 2
7 ,2 9 9 ,4 8 4
7 ,5 6 8 ,6 6 1
7 ,9 7 1 ,0 0 3
8 ,2 8 6 ,7 1 9
8 ,7 4 8 ,5 1 0
8 ,5 1 2 .3 1 1
9 ,2 8 7 ,5 9 4
1 0 ,2 1 3 ,5 3 5
9 ,4 8 9 ,1 3 0
4 ,6 8 3 ,8 0 3

P riva te
D eposits.
1 2 ,9 2 4 ,5 4 5
1 2 ,9 8 1 ,2 7 6
1 3 ,2 6 5 ,0 6 8
1 2 ,7 1 1 ,6 3 7
1 3 ,0 2 1 ,2 1 2
1 3 ,0 5 2 ,6 0 4
1 5 ,4 1 1 ,7 9 4
1 3 ,8 7 9 ,8 7 7
1 3 ,4 0 6 ,6 2 7
1 3 ,3 7 2 ,9 8 1
1 2 ,8 8 2 ,2 2 6
1 3 ,3 0 6 ,1 5 6
1 2 ,4 2 6 ,6 7 3
1 3 ,5 4 1 ,2 7 8
1 2 ,4 3 4 ,9 7 5
1 3 ,1 0 5 ,8 0 0
1 2 ,4 8 0 ,1 5 4
1 2 ,6 5 8 ,9 8 6
1 3 ,3 4 8 ,2 9 9
1 3 ,5 8 6 ,0 2 9
1 3 ,6 8 4 ,0 6 9
1 2 ,6 2 0 ,0 3 6
1 2 ,2 7 8 ,9 0 3
1 2 ,9 0 1 ,1 6 0
1 2 ,9 6 2 ,4 0 2
1 2 ,8 8 2 ,0 4 2
1 2 ,4 9 3 ,7 7 6
1 1 ,9 6 6 ,2 0 4
1 2 ,7 9 0 ,3 6 1
1 3 ,0 5 1 ,6 6 1
1 2 ,8 9 0 ,2 4 4
1 3 ,4 7 1 ,4 1 5
1 5 ,0 8 2 ,7 4 6

Secu rities.
3 1 ,9 8 0 ,8 8 9
3 2 ,6 2 2 ,6 5 9
3 2 ,3 0 3 ,0 4 9
3 2 ,2 7 0 ,2 8 6
3 3 ,4 3 8 ,1 5 4
3 3 ,4 8 6 ,9 6 2
3 1 ,7 2 6 ,5 7 5
3 1 ,4 4 5 ,8 6 0
3 1 ,0 1 7 ,4 4 9
8 1 ,4 3 6 ,3 3 4
3 6 ,9 2 3 ,3 1 7
3 1 ,0 7 8 ,3 2 8
3 0 ,5 0 4 ,8 2 7
3 1 ,9 8 0 ,4 4 6
3 1 ,7 6 9 ,3 1 1
3 1 ,9 2 9 ,1 6 4
3 2 ,1 1 2 ,5 4 3
8 3 ,4 7 2 ,4 8 4
3 4 ,2 2 3 ,5 0 9
3 1 ,3 8 5 ,3 0 5
3 1 ,5 9 6 ,1 7 9
3 0 ,9 6 1 ,6 3 5
3 2 ,0 7 0 ,4 2 7
3 2 ,2 3 9 ,2 1 0
3 1 ,8 5 5 ,6 9 6
3 1 ,2 9 7 ,1 8 1
3 1 ,3 2 9 ,1 2 1
3 0 ,7 1 1 ,7 4 0
3 0 ,8 8 4 ,1 9 2
3 1 ,9 4 8 ,8 5 6
3 3 ,2 9 7 ,8 9 7
3 4 ,2 8 6 ,5 9 2
3 1 ,6 3 7 ,5 0 9

Coin and
Bullion.
1 3 ,0 4 8 ,4 7 5
1 3 ,0 0 8 ,6 1 7
1 3 ,6 7 5 ,4 7 4
1 4 ,2 1 7 ,0 6 7
1 4 ,3 6 2 ,6 0 5
1 4 ,1 9 6 ,7 5 4
1 1 ,7 0 8 ,5 9 7
1 2 ,9 7 4 ,1 0 9
1 3 ,0 2 2 ,2 2 0
1 3 ,3 0 3 ,2 4 3
1 3 ,4 7 2 ,2 7 1
1 3 ,5 8 3 ,6 3 5
1 3 ,8 1 9 ,4 1 2
1 4 ,0 3 4 ,2 2 2
1 3 ,8 8 4 ,3 8 9
1 3 ,9 4 6 ,9 4 3
1 4 ,4 9 9 ,2 0 1
1 4 ,1 6 3 ,6 1 9
1 3 ,6 1 6 ,7 6 2
1 3 ,0 8 0 ,3 0 0
1 2 ,7 4 3 ,3 0 2
1 2 ,5 6 7 ,7 7 6
1 2 ,4 5 4 ,2 4 4
1 2 ,7 0 5 ,2 5 1
1 3 ,2 6 7 ,4 1 6
1 3 ,7 1 3 ,9 4 3
1 4 ,0 5 2 ,7 6 1
1 4 ,0 4 3 ,1 2 9
1 4 ,3 0 4 ,2 0 5
1 4 ,3 1 9 ,0 6 1
1 4 ,1 9 7 ,8 4 9
1 3 ,9 3 0 ,8 0 9
1 3 ,7 0 1 ,1 1 2

E a te o f
D is c o u n t
8 p er ct.
It
8
7
7
7
7
7
8
8
8
7
7
6
6
6
6
6
6
6
6
7
7
9
9
8
7
7
7
6
6
6
6
6

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1865 •]
<(

2 0 ,..

“

2 7 ,..
3 ,..
1 0 ,..
1 7 ,..
2 4 ...
8 1 ,..
7 ,..
1 4 ,..

Aug.
“
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Sept.
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Oct.
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Nov.
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73

Journal o f Banking, Currency, and Finance.
.

.
.
.
.
.
.
.
.
2 1 ,.. .
2 8 ,.. .
5 ,.. .
1 2 ,.., .
1 9 ,. . .
2 7, . .
2 ,. . .
9,. . .
1 6 ,. . .
2 3 ,. . .
3 0 ,. . .

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

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

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

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

6
8
8
8
8
8
8
9
9
9
9
9
9
9
9
9
8
8
7
7

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The returns of the Bank of France show a more prompt action of a high rate
of money upon the influx of coin, which rose from 250,423,737f., October 20
when the rate was put up to 8 per cent, to 308,621,518f., or by 58,000,000f. to
November 23, when the rate was put down to 6 per cent; and, in the last week
of November, to 5 per cent. The returns were as follows :
BA N K OP FRANCE.
Loans.

S p e cie .

C ir c u la tio n .

D e p o sits. Interest.

January —fr.751,649,983 fr.169,027,010 fr.813,490,825 fr.159,797,667
182,573,888
February — 705,516,796
775,096.775
160,110,225
March
— 642,135,993
195,994,738
746,610,375
142,925,719
April
— 643,570,276
219,320,720
759,926,425
133,701,530
May
242,824,609
767,443,475
— 683,332,517
178,434,305
294,892,295
June
— 577,309,524
725,381,925
156,685,209
It
280,511,406
23, 594,563,973
720,243,375
144,559,768
it
277.544,816
30, 676,605.538
766,609,875
165,668,712
July
7, 662,197,524
276,522,727
772,309,475
170,022,200
It
266,890,961
14, 667,187,446
792,819,275
152,242,482
It
21, 639,299,542
269,810,253
788,378,725
135,282,170
it
28, 642,692,154
276,162,420
791,673,525
144,636,985
276,790,393
August
786,629,625
4, 634,904,899
157,810,891
it
11, 633,495,575
272,433,487
777,023,925
148,866,812
ll
276,200,183
18, 627,110,297
769,096,425
139,746,017
it
280,595,089
767,100,725
25, 615,885,942
130,431,547
September 1, 618,948,683
279,353,778
767,763,725
141,075,120
it
8, 618,030,503
281,021,082
752,214,625
137,349,361
“
15, 633,405,806
273,371,823
761.638,225
130,975,227
it
22, 585,624,962
276,644,874
732,775,425
110,529,671
it
279,039,471
739,183,625
29, 608,645,155
122,373,527
October
6, 606,581,148
267,533,219
751,377,975
128,769,575
«
13, 619,256,344
754,479,725
250,423,737
120,525,826
<(
254,073,596
20, 621,458,240
761,296,775
123,847,672
ii
27, 591,882,251
272.826,218
740,767,475
124,872,300
5, 619,601,399
274,145,142
749,664,075
No v.
156,717,974
ll
10, 612,218,482
276,575,577
745,249,825
153,336,313
it
17, 592,319,529
284,276,966
733,661,325
148,945,706
ll
24, 571,509,684
308,621,518
732,482,125
146,273,755
327,718,612
1, 564,370,793
712,316,325
Dec.
158,317,239
6
g V O L . L II.-----N O . I .




7
7
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
7
7
7
7
7
8
8
8
7
7
7
6
5

74

Journal o f Banking, Currency, and Finance.

[January,

This was due partly to the revival of the old system of purchases of the pre­
cious metals, and partly to the rigor which the Bank exercised towards bills
which there was reason to believe would occasion a drain of coin. So great
was this rigor that the discounts are 57,810,OOOf less than they were Oct. 20.
As to the note circulation, it declined 30,000,000f. These reductions were not
made without great distress, and consequent complaint. The principal disasters
was the failure of R otgemont i>e L owenberg. He was at the head of a banking
firm of long standing and considerable importance. His liabilities are stated at from
15.000. 000f to 18,000,000f, (3 to 4 million dollars)—but it is said that there are
large assets, though they cannot be immediately realised. It appears that he became
embarrased principally on account of his connection with the Libourne to Bergerac
Railway, of which he was one of the chief promoters. One or two banks with
which he was much connected were, in consequence of his failure, under the ne­
cessity of obtaining aid, and fears were entertained that they may, in spite of it,
be obliged to close their doors. Unfavorable reports respecting other banks
and some few commercial firms were current, and at Bordeaux and Lyons fail­
ures are apprehended. None of the Paris Banks, however, failed, but confidence
in them was not strong. It said, also, that certain Russian houses suffered great­
ly. The actual suspensions were :—1, a commission agent at Paris in an exten­
sive way of business ; 2, two houses at Lyons, one of them engaged largely in
the silk trade ; 3, two shipping firms ar Bordeaux, one a large one ; and fourthly,
the bills of “ several ” cotton dealers at Havre were protested. The amount of
the liabilities in the various failures recorded is loosely estimated at from
20.000. 000f to 25,000,000f. (£800,000 to £1,000,000).
The dearness of the money market, and the fact that the Bank of France alone
has the right to raise the rate of interest at will, caused much discussion. The gov.
ernment, before presenting to the Corps Legislatif a bill for the abolition of
the Usury Laws, thought right to consult the Chamber of Commerce. Most of
them declared energetically in favor of “ liberty of in te r e s tb u t the Chamber
of Commerce of Rouen is of a different opinion- As organ of the very Protec­
tionist city, it thinks the restriction by law of the rate of interest wise and just,
and demands its maintenance. It, besides, complains that the Bank of France
is, by special privilege, allowed to charge more than the legal rate whenever it
pleases— certainly a special privilege that is open to remark. The Chamber of
Commerce of Rouen, moreover, demands energetically that “ the Bank of France
shall be made to do what it was founded for— discount commercial bills at the most
moderate interest possible,” and that “ the government shall take measures for
providing the Bank with the necessary means of attaining that object.” But
the Bank already does the former, and it cannot do otherwise if it would ; whilst,
as to the government, it has no power whatever in the matter.




1865 .]

The Reciprocity Treaty.

75

THE RECIPROCITY TREATY.
THE PRESENT TREATY SHOULD

BE

CONTINUED

UNTIL A NEW TREATY IS M ADE.

T he subject of our commercial relations with Canada, which has been so much
discussed the past year, is likely to receive increased attention at the present
session of Congress. What has been already said has accomplished much, since
thus the public mind has been enabled to reach certain definite conclusions.
In the first place, it seems now to be the universal sentiment of thoughtful men
that our interests lie in future freedom of commercial intercourse, not in addi­
tional restrictions. The action of every Board of Trade we have seen, has been
to this effect. Trade must be free, or as nearly so as possible. Again, all agree
that our existing Treaty must be continued until a new one is made. There may
be, and undoubtedly are imperfections in i t ; but at the same time great benefits
are accruing, especially to the West, from its operation.
The following letter shows what has recently been the action of the Board of
Trade of Detroit, and of some other similar bodies :
D etroit, Dec. 9th, 1864.
W . B. D ana :
D ear S ir ,—Be kind enough to chronicle in your valuable journal the fact that

our Board of Trade has, after mature consideration and full discussion, declared
unanimously in favor of allowing the present Reciprocity Treaty to stand until
another Treaty shall have been negotiated by Commissioners to be appointed by
the high contracting parties. This action, on the part of our Board, is signifi­
cant of the friendship that every philanthrophist and enlightened lover of his
country so ardently desires to see obtain between us and foreign powers, and es­
pecially between us and our British neighbors; there being so much that should
knit us together in the closest ties of brotherhood. Besides, this action makes
the decision of the agricultural and commercial interests of the North West al­
most unanimous in favor of the continuance of the Treaty—a decision that will
continue to be favorably regarded by the government of the United States. By
thus promoting the interests of this growing section of our common country, the
interests of the whole, to which the West is so largely tributary, will be best
served. In addition to the action of our Board of Trade above refered to, I give
below the action of several other similiar bodies :
MICHIGAN.

Detroit Board of Trade, December 7, says :—“ The only action necessary, on
the part of our government, is to allow the present treaty to stand until commis­
sioners appointed by it, and the British Colonies of North America, agree on
whatever alterations may be deemed advisable and mutually just and bene­
ficial.”
ILLINOIS.

Chicago Board of Trade, February 10, 1862, states that the “ treaty has been
of great value to the producing interest of the whole North West ” Says that
“ we should not check the energy nor circumscribe the industry of our country,
but take a broad national view of the question, and firmly advocate the principle
of the greatest good to the greatest number. Cannot recommend any measure
that will in the least cripple the energies of our people, but cheerfully advocate
the revision of the treaty, if any of its parts are unjust or oppressive. What we




76

The Reciprocity Treaty.

[January,

desire is to make our trade still more reciproeal, still more free with our Cana­
dian neighbors.”
WISCONSIN.

Chamber of Commerce at Milwaukee, January 13,1864* desires “ such action
as shall result in securing a new treaty, founded upon the true principles of re­
ciprocity between the two governments and the people of both countries, and
which shall obviate the objections and inequalities existing in the present treaty,
and be upon a more liberal and enlarged'basis.”
MINNESOTA.

Memorial of the Chamber of Commerce at St. Paul, referred to the Commit­
tee on Commerce, February 5,1862, invokes the “ sober second thought ” of the
country on the subject of our continental policy ; reiterates the “ uniform utter­
ance of the authorities and citizens of Minnesota in anticipating an adjustment
of the relations of the United States and all the British provinces on this con­
tinent, upon a basis of mutual interest and good will ; does not deny the expe­
diency of a revision of exisiting stipulations, but always in the interest of further
freedom, not additional restriction of commercial intercourse.”
MASSACHUSETTS.

Boston Board of Trade, March 8, 1864, “ resolved, that the continuance of
the Reciprocity Treaty of 1854, between the United States and Great Britain,
as the same may be revised in certain particulars by commissioners of the two
high contracting powers, is of great moment to both countries, and is demanded
by the principles of human brotherhood, as well as by the interests of American
commerce.”
From these several expressions of sentiment, touching our commercial relations
with our neighbors, we look for an amended treaty that shall correct any imper­
fections that time lias shown to exist in the present treaty, and at the same time
secure and extend the real benefits that have already accrued to both countries
under the existing treaty.
The action of the Board of Trade of Detroit, above referred to, took place on
the 7th of December. A committee had previously been appointed which pre­
sented the lollowing report. We give this report entire because it clearly and
forcibly expresses the views of a large body of men in the West. The whole
report was not adopted by the Board, but its conclusion was—some of the memb­
ers not wishing to commit themselves to all the points discussed in i t :
D e t r o i t , Dec. 6,1864.
To the Honorable the Board of Trade of the City of Detroit:
On the 7th of June last, we, the undersigned, were appointed a committee to
report to your honorable body, on the second Tuesday of December, what action,
if any, in the opinion of this Board is needed, on the part of our Government,
with regard to the abrogation of the Reciprocity Treaty, now existing between
the United States and the British North American Colonies.
Your committee would beg respectfully to report as follows -We find that
both the Government of the United States and the Government of Canada have
given this grave and important question much and careful consideration, and an
examination of the facts and figures presented in their various reports has en­
abled us to arrive at the following conclusions :
From the year ending June 30th 1821, to June 30th, 1863, the total exports
to Canada and the other British American Provinces were 5422,443,981 ; the
total imports for the same time were 5260,327,900— making a balance in favor
of the United States of $162,116,081. With men acquainted with commercial
matters, no further argument is needed to prove that the trade with Canada and




♦

1865 .]

The Reciprocity Treaty.

77

the other British possessions of North America has been of vast advantage to
the people of the United States. This seems so clear and conclusive that we
consider it unnecessary to add anything to the force of the figures presented ; to
do so would be a waste of time.
We find the principal argument in favor of an abrogation of the treaty to be
the fact, that since the treaty went into effect, the Parliament of Canada has
largely increased the duties on manufactured articles produced by us, causing a
large decrease in the demand for such articles, and consequently acting injurious­
ly upon our interests. We say this is no valid objection, as these duties do not
touch one single article named in the treaty ; and further, no one claims that any
infringement of the treaty has taken place. On the contrary, it is admitted on
all hands that both parties have been scrupulously exact in the observance of its
terms, in spirit and in letter.
The Government of Canada increased the duties on imports, not because it
desired to inflict any injury on the people of the United States, or their com­
merce, but because this measure had become a matter of necessity, in order to
sustain the public credit and meet the public expenses. If increasing the duties
on imports, under these circumstances, be a just matter of complaint against the
Government of Canada, then, every nation with whom we have treaties of com­
merce has a much more just cause of complaint against ourselves, as our nation­
al necessities have compelled us to raise the duties on articles coming into the
United States, far beyond anything contemplated by the Legislature of Canada.
We take the ground that the governments of the two countries are the sole
judges of what is best to be done in the way of taxation in their respective
countries, and when, as in the present case no treaty is infringed, no other nation
has a right to consider itself aggrieved.
The second argument used is, that the people of Canada and the British Isles
have no sympathy with us in our present struggle; that on the other hand, all
their best wishes and feelings are with our enemies. This view of the case is
largely dwelt upon to create a prejudice against the treaty. We consider this
no kind of argument, as it has nothing to do with the subject under discussion ;
and it is not in keeping with the dignity of a great and powerful nation like the
United States, to allow itself to be betrayed into hasty and ill-advised acts of
legislation, because a portion of the inhabitants of certain countries do not like
us. This is not a question of likes or dislikes, it is a question of trade and com­
merce, affecting the well-being of 70,000,000 of people. I f there has been any
infringement of our rights on land or water we submit, that, repealing the re­
ciprocity treaty is not the proper redress for wrongs done us. Let the Govern­
ment of the country, when the proper time comes, present its case in the right
quarter, in a becoming and statesmanlike manner, and insist on such redress as
is just and reasonable. Let our commercial treaties, and our quarrels, each stand
or fall on their own merits.
It is further argued that our lumber interests suffer by the competition of the
Canadian lumber merchants. We consider this a most wholesome as well as
needful competition. It is well known that the pineries of the great West are
being rapidly taken up by large capitalists, and that in a few years monopolists
will hold the most of these lands; this result will leave the consumer at the mercy
of these great land holders, who would then control the price of lumber and put
it to such a rate as would greatly retard the building and improving of our cities,
towns and villiages, and weigh heavily upon our farming interests. We there­
fore consider it a great and fortunate thing for the people of the great West that
we have the privilege of the Canadian lumber market to keep in check the de­
sire of our own dealers in that article, to raise it to an unreasonable price. Cheap
lumber is a commodity of indispensable necessity with us.
Coal is covered by the same argument as lumber. Coal masters are combin­
ing all over the land to raise and keep up the price of fuel, and we are only sorry
that Novia Scotia does not export to the cities of our Atlantic seaboard twenty
times more coal than she does; because, if she did, we would have a much larger




78

The Reciprocity Treaty.

[January,

and cheaper supply at the West. The interest of the manufacturer, the wants
of the poor, the requirements of our vast steam marine on the western lakes, as
well as on the seaboard, demand cheap fuel, and no monopoly in either lumber
or coal. We trust the time is gone by when those who earn a living by the
sweat of their brow can be made the mere tools of those who get rich by impro­
per acts of Congress. In helping us to fuel and lumber at a reasonable price, the
treaty is a real blessing.
Touching the fisheries, although they have not been near so profitable to us a3
was anticipated, the settlement of a question that was rapidly drifting the two
countries into an attitude hostile to each other, was a boon so great to both par­
ties that, had the treaty affected nothing else, it would have been worth all the
advantages its encodes claim we have given to Canada.
In whatever light we view the treaty, it has been of vast importance to us, as
well as to the colonies. It has been what all treaties should be, a mutual bene­
fit, conferring on both contracting parties, advantages as nearly equal as pos­
sible.
We now come to breadstuffs. It is claimed by those opposed to the treaty,
that this portion of it affords great and improper advantages to the Canadians.
We claim the advantages are on the side of the United States, and not of Cana­
da. Instead of being injured by the importation of Canadian grains, we are
largely benefited. We will try and prove this, and we think the proof is conelusive. In 1803 we imported at Detroit 300,000 bushels of Canadian white
wheat, on which Americans received the following sums, for labor, freight, in­
surance, elevating charges, and commission :
Elevating and shipping charge on 300,000 bushels, 2 c..........................
Fire insurance ou value here $450.00,
Freight to Buffalo on 300,000 bus., 6e.............................................................
Transfer at Buffalo, l c .......................................................................................
Canal freight to New York, 20c........................
Measuring at New York, lc ...........................................................................
Commission on value at New York, at $1.90 per bushel, $484,250,2}
per cent........................................................................................................
Lake insurance on $684,250 at | per cent premium....................................

$6,000
1,125
18,000
3,000
60,000
3,000

00
00
00
00
00
00

14,250 00
2,921 25

Total charge paid Americans..................................................................$108,296 25
W ith the revenue law, as it stands at present, the Government would have re­
ceived directly, as its portion o f the benefit, the following sums :
On canal and lake freight $18,000 at 2J p ercen t.......................................
On gross sales $584,250 at J o f 1 per cent.....................................................
On stamps for time drafts for $400,000 at 50c. per 1,000..........................
Assuming that all parties interested netted the moderate sum of $10,000
on this property, it added just that amount to the nett income of the
various parties interested, so that with a five per cent income tax,
the Government would get another sum out of the transaction o f . .

$1,950 00
130 30
200 00

Amount paid the Treasury..............................................................

$3,880 30

600 00

Here we have a sum of f i l l , 676 55 paid to the Government and people on
one lot of 300,000 bushels of white wheat. Every transaction of the same Dature
resulted more or less in the same way. It will take a great deal of argument,
prejudice and sophistry, to prove that the United States were deeply wronged
by the above and kindred transactions. The opponents of the treaty say that this
wheat would have come in under a twenty per cent ad valorum duty, and that
we should have had all these profits and the duty besides. To this we reply :—
We would not have received one single bushel of the wheat with a twenty per
cent duty, for the simple reason, that the amount of this tax would have paid the
freight charges, insurance and commission from the point, or way port from
which the grain started in Canada, to Montreal, where it would have sold for a




1865.]

The Reciprocity Treaty.

79

larger sum than it would have done at Detroit. As all merchants sell in the
market that will yield them the largest net profits on a given article, it is easy to
see that Montreal, and not Detroit, would have drawn this grain into its port,
and that neither the people nor the Government of the United States would have
received a single dollar out of the transaction.
It may be deemed policy, it may be considered statesmanship, it may gratify
a spirit of revenge for wrongs, fancied or real, to destroy this trade that so large­
ly benefits the citizens of the United States. Your committee think otherwise ;
such conduct could only be expected of Chinese, Japanese, and other semi-bar­
barous nations, who are in the habit of erecting barriers to hinder commerce;
when they overdo the thing and get their barriers a little too much in the way.
Christian England, France and the United States send fleets and batter down
all obstructions, destroy forts, burn cities, sink shipping, and do many other
things that only strong Christian nations can do, to teach weak heathen nations
proper respect for civilized ideas of free trade; and yet we can be so inconsistent
as to do ourselves what we so strongly condemn in others.
Our commission merchants complain that a vast quantity of flour is now pur­
chased in Toronto by parties who used to make their purchases in Detroit, and
claim that the treaty ought to be repealed on that account. To say the least,
this complaint is rather selfish and ungenerous ; for the plain English of the de­
sire is to get a law passed by Congress that will compel the New England con­
sumer to purchase his flour in Detroit, whether it is to his interest to do so or not.
A better and more natural way would be for our merchants to offer our New
England friends flour at fair rates, instead of holding it from one to two dollars
per barrel above all other markets, as they have generally done for the past few
years, and by this cause have driven the flour trade that used to center here, to
Toronto, Chicago, Milwaukee and Toledo. A spirit at utter variance with the
ordinary rules of trade has lost us this business, and nothing else. Neighboring
cities with more spirit and liberality, are fast stripping us of even the home trade;
for the same reason, Chicago and Cleveland are fast leaving us behind in the
race for the Lake Superior trade, simply because the consumer in that region
can trade with more advantage with them than with us ; and it would be just
as reasonable to ask Congress to stop this trade as to ask a repeal of the Recip­
rocity Treaty, to prevent the New Englander from purchasing his flour in
Toronto.
Canada, and the Northwestern States, have always a surplus of breadstuffs, and
both must look abroad for a market for what they cannot consume themselves, and
both look to the same market. It therefore follows, that Canada can send to Liv­
erpool just the amount less she has sent to New England. If she sent none of her
supplies to the United States, she would have to send the whole of it to the
markets abroad, where our own supplies would come into competition with i t ;
this being the case, it appears to us a matter of no moment whether the ground
on which we compete is Boston or Liverpool, for every merchant knows that
the foreign, and not the home market, governs the price.
The next complaint against the treaty is, that it fosters and sustains rival
transportation interests through a foreign country. This i3 the most groundless
complaint of all. There is not one single merchant in the Northwest but knows
that the facilities to transport the produce of this region to the sea-board, through
American territory, is utterly inadequate to the task—that, in the busy season
of the year, freights are so crowded on the American lines, that the cost of tran­
sportation is largely increased, and delays so numerous, that the mercantile and
farming interests suffer great damage from these two causes. We do not use
more severe language than is called for, when we state that members of Cong­
ress and others, who make this complaint, show an amount of ignorance on the
subject that can hardly be explained or excused. The only real ground of com­
plaint your committee can make clear is, that the Grand Trunk Railway (one of
the rival lines), has not increased its rolling stock to a point where it could car­
ry off an average of at least 10,000 barrels of flour per day from Detroit, instead




80

The Reciprocity Treaty.

[January,

of the present small and insignificant amount it can transport. I f it could do
this, it would add fire cents per bushel to the value of all the wheat grown in
Michigan, for the reason that its increased facilities would reduce the cost of
conveying a barrel of flour from this point to the seaboard at least twenty-five
cents per barrel. In other words, the saving yearly, for all time to come, would
be almost equal to the original cost of the land on which the wheat was pro­
duced.
Tour committee have only touched briefly on some of the more important
points of the treaty. It is needless for us to add, that we are, and think your
honorable body should be, opposed to a repeal of the Eeciprocity Treaty. We
condemn in the most earnest and unqualified terms possible, all legislation, that
has for its object the placing of the producer and consumer within the grasp of
the monopolists who try on this particular subject to control the action of Con­
gress.
Finally, we would respectfully report that, in the opinion of your committee,
the only action necessary on the part of our Government is, to allow the present
treaty to stand, until commissioners appointed by it, and the British Colonies of
North America, agree on whatever alterations may be deemed advisible and mu­
tually just and beneficial.
In modifying the treaty, we would respectfully suggest that our Governmen t
endeavor to have the Government of Canada enlarge the locks of the Welland
Canal to the same length and breadth of the St. Lawrence Canals ; and that,
within a given number of years, (say five years) from the ratification of the
amended treaty, that the Canadian Government guarantee a depth of 12 feet 6
inches of water fit for navigation from the entrance of the Welland Canal at Port
Colborne to Montreal; as also the enlargement of the locks above named ; for
which great and important benefit to us, the new treaty be made for twenty-five
years, so as to give stability to the trade between the two countries, and take
away all cause for mutual irritation, and put it beyond the hope or power of
scheming monopolists on either side to disturb the harmony of the two countries
by acts of unfriendly legislation,
We would also suggest that the revenue laws of Canada be so amended, that
goods purchased in the ongiual package in the United States be admitted to
Canada on the same terms as if the same class of goods had entered by sea ; and
that our Government give the same advantage to goods in the original package
from Canada.
We are also of the opinion that the law that authorizes the Governor Gener­
al to discriminate in favor of certain railroad routes be repealed.
As the law
now stands, he can issue an order to admit goods via Portland, by the Grand
Trunk Railroad, at the value at the port of exportation ; whereas, the same
goods entering from any other of our seaport cities, would be liable to the value
at that point of departure. Exceptional laws of this kind must always produce
irritation in the minds of those injured by them ; and no one, oither in Canada
or the United States, can look upon such enactments in any point of view ex­
cept that of being most unfriendly acts.
To remedy such evils, and strengthen the bonds of friendship between the two
countries, we respectfully recommend the line of policy indicated in this re­
port.
D uncan S tewart, Chairman of Committee,
W. 11. C raig ,
R. H awley,
A ug. E. B issell,
F. L ambie.




1865 .]

81

The Naval Forces o f the United States.

THE NAVAL FORCES OF THE UNITED STATES.
T he subjoined statements, which we take from the Report of the Secretary
of the Navy, presents a general exhibit of the navy, including vessels under con­
struction on the 1st of December, 1864, with a comparative statement of the
navy in December, 1863 and 1864.
A tabular statement is appended of the number of naval vessels, of every class,
that have been constructed, or in the course of construction, since March 4,
1861.
GENERAL EXHIBIT OF THE NAVY, INCLUDING VESSELS UNDER CONSTRUCTION, DEO.,
N o. o f
Vessels.

N o. o f
D escription.

118 Screw steamers especially constructed for naval purposes.
62 Paddle-wheel steamers especially constructed for naval
purposes............. ....................................................................
71 Iron-clad vessels........................................................................
149 Screw steamers purchased, captured, <fcc., fitted for naval
purposes..................................................................................
174 Paddle-wheel steamers purchased, captured, <fcc., fitted for
naval purposes................................................
112 Sailing vessels o f all classes....................................................
671

Total..................................................................................
COMPARATIVE STATEMENT OF THE NAVY, DECEMBER,

N o. o f
Vessels.

1863

83

1864.
tons.

1,426

169,231

524
275

51,878
80,596

614

60,380

921
850

78,762
69,549

4,610

510,396

AND

N o. o f
D escription.

671 Total Navy, December, 1864 ...................................................
5S8 Total Navy, December, 1863
..........................................

N o. o f
guns.

1864.

N o. o f
guns.

tons.

4,610
4,443

510,396
467,967

Actual increase for the year..........................................

167

42,429

26 Total losses by shipwreck, in battle, capture, &c., during
the y e a r,..................................................................................

146

13,084

109 Actual addition to the Navy from December, 1863, to De­
cember, 1864 ..........................................................................

313

55,513

The following tabular statement exhibits the number and description of ves­
sels that have been constructed, or put in the course of construction, for the
navy, since the institution of active measures for the suppression of the rebellion.
Some of them have been built by contract; others by the Government, in the
several navy yards. If we add to the number those constructed under similar
circumstances, and within the same period, that have been lost by shipwreck, in
battle, &c., v iz.: the sloops Housatonic and Adirondack, and the iron-clads
Monitor, Weehauken, Keokuk, Indianola and Tecumseh, the aggregate would
be 210 vessels, 1,675 guns, and 256,755 tons.
Picket-boats, and small craft built for especial purposes, are not embraced in
this statement.
VESSELS CONSTRUCTED FOR THE NAVY SINCE MARCH
N o.

4, 1861.

D escription .

7 Screw sloops, Ammonoosuc class, 17 to 19 guns, 3,213 to
3,713 tODS each.......................................................................
1 Screw sloopIdaho, 8 guns and 2,638 tons...............................
8 Screw sloops, spar deck, Java class, 25 guns and 3,177 tons
e a ch ..........................................................................................
2 Screw sloops, spar deck, Hassalo class, 25 guns and 3,365
tons each..................................................................................




G uns.

Ton nage.

121
8

23,637
2,638

200

25,416

50

6,730

82

[January,

The Naval Forces o f the United States.

N o.

_

Description.

10 Screw sloops, clippers, single deck, Contoocook class, 13
guns and 2,348 tons each......................................................
4 Screw sloops, Kearsarge class, 6 to 12 guns, and averaging
1,023 tons each.......................................................................
6 Screw sloops, Shenandoah class, 8 to 16 guns and 1,867 to
1,533 tons each.......................................................................
2 Screw sloops, Ossipee class, 10 to 13 guns and 1,240 tons
e a c h . . . . . ................................................................................
8 Screw sloops, Serapis class, 12 guns and 1,380tons ea ch ..
4 Screw sloops, Resaca class, 8 guns and 831 to 900 tons
each...........................................
8 Screw sloops, Nipsic class, 7 to 12 gunsand 693 tons each
23 Screw gunboats, Unadilla class, 4 to 7 guns and 507 tons
each...........................................................................................
9 Screw tugs, Pinta class, 2 guns 350 tons each......................
2 Screw tugs, Pilgrim class, 2 guns and 170 tonseach...........
13 Paddle-wheel steamers, double-enders, Octorara class, 7 to
11 guns, and 730 to 955 tons each......................................
26 Paddle-wheel steamers, double-enders, Sassacus class, 10
to 14 guns and 974 tons each ..........................................
7 Paddle-wheel steamers, of iron, double-enders, Mohongo
class, 10 guns and 1,030 tons each..................... ...............
1 Paddle-wheel steamer, of iron, double-ender, Wateree, 12
guns and 974 ton s.................................................................
141

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

Gnns.

Ton nage.

130

23,480

40

4,092

74

8,584

23
96

2,480
11,040

32
71

3,462
4,744

123
18
4

11,661
3,150
340

98

11,024

272

25,324

70

7,220

12

974

1,442

175,986

IRON-CLAD VESSELS.

2 Sea-going casemated vessels, Dunderberg and Uew-Ironsides..........................
3 Sea-going turret vessels,Puritan,Dictator and Roanoke.. .
4 Double-turret vessels, Kalamazoo class, 4 guns and 3,200
tons each......................................................................
4 Double-turret vessels, Monadnock class, 4 guns and 1,564
tons each.....................................................................
1 Double-turret vessel, Onondaga,4 guns and1,250 ton s.. . .
4 Double turret vessels, Winnebago class, 4 guns and 970
tons each..............................................................................
8 Single-turret vessels, Canonicus class, 2 guns and 1,034
tons each......................................................................
9 Single-turret vessels, Passaic class, 2 to 4 guns and 844
tons each........................................................................... . . .
20 Single-turret vessels, Tazoo class, 1 to 2 guns and 614
tons each......................................................................
2 Single-turret vessels, Sandusky and Marietta,2 guns each.
8 Single-turret vessels, Ozark, Neosho and Osage, 2 to 7
guns each......................................................................
2 Casemated vessels, Tuscumbia and Chillicothe, 5 and 3
guns respectively........................................................
62
203

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

28
12
16

8,576
9,733
12,800

16
4

6,256
1,250

16

8,880

16

8,272
21

35
4

7,596
12,280
953

13

1,624

8

768
189

73,988

1,631

249,974

CONSTRUCTION OP N AVAL VESSELS.

At the commencement of the rebellion the navy consisted of sailing vessels, a
few paddle-wheel steamers, and screw vessels with auxiliary steam-power.
Among the latter, the principal and most important were the steam frigates,
which, on account of their great draught of water, were unsuitable for any other
purpose than that of cruisers on foreign stations as flag-ships, for which indeed




1865 .]

The Naval Forces o f the United States.

83

they were intended. These vessels had been built to meet the conditions of the
day ; some of them, the Mississippi for instance, had been in service more than
twenty years. When constructed, the principal object in view was armament,
not speed, and they were equal, if not superior, to the vessels of other naval
Powers. For attacks on forts, when accessible to naval attacks, or to protect
trooys in landing, they can still render service. Time was required to repair
and place in proper condition such of these vessels as were dismantled, and also
those which were recalled from service abroad. The sailing men-of war had be­
come useless for fighting purposes. In the emergency that devolved upon it at
the beginning of hostilities, the department resorted to the commercial marine,
and purchased every available merchant steamer that could advantageously be
converted into a naval vessel, and be used to enforce the blockade.
The want of a class of small, heavily armed, propeller vessels was felt, and the
department immediately proceeded, on its own responsibility, and without any
appropriation or authorization by Congress, to contract for the construction of
twenty-three gunboats, of which the Unadilla, Pionolaand Wissahickon may be
taken as the type. Some of these vessels were afloat, armed and manned within
four months from the date of contract, and participated in the attack on PortRoyal; others took part on the lower Mississippi, in passing the forts and in
capturing New-Orleans. These gunboats continue to maintain a good reputa­
tion, and their steam machinery gives satisfaction. Well adapted as they are
for guarding our coast, a larger description was needed for ocean service,
and four vessels of the class of the Ossipee, mounting each two guns of eleven
inches, were built. There were, also, four vessels of slightly less tonnage con­
structed. carrying the same armament, of which the Kearsarge is the type. The
Shenandoah is the type of six vessels, mounting each three eleven-inch guns, all
of which sustain a high reputation. The heavy guns mentioned constitute the
principal armament of the several classes named, but they each have in addition
from two to six guns of less calibre. All of these vessels are screw steamers,
suitable for sea cruising : but for shallow sounds and bays, the rivers and bayous,
often narrow and tortuous, another and different class, drawing less water, was
found to be necessary, and for them competition was invited. To turn in these
frequently restricted channels is difficult, sometimes impossible, and the necessi­
ties of the case suggested the principal of a fighting vessel with a double bow
and rudder at each end. Twelve paddle-wheel steamers constructed on this
principle were built, some in the navy-yards and others by contract. The PortRoyal and the Sonoma are types of this class. An additional number, amount­
ing to twenty-seven, of these double-bowed paddle-wheel vessels have been built,
almost all of them by contract. The Sassacus, which was distinguished in the
attack on the rebel ram in Albemarle Sound, the Metacomet, conspicuous in
Mobile Bay, and the Eutaw, are types of these vessels. Eight of this class are
built or building of iron, and will have strength sufficient for sea service as well
as for inland waters. One of them, the Wateree, sent round Cape Horn, reached
San Francisco in September last, and is on duty in the Pacific.
In order to have armed vessels suitable for naval operations on the Mississippi
and its tributaries, the Department invited plans and propositions from ship­
builders and others acquainted with those waters, and the vessels built on those
rivers have been chiefly from the plans submitted by parties thus invited. Two
of these vessels, built at St. Louis, participated in the action with the rebel ram
Tennessee, and have done good service in Mobile Bay.
The entire class of monitor or turreted vessels has been brought into existence
during this war, and the coast and harbor iron clads have been serviceable in
James River, at Charleston, and at Mobile. Modifications and improvements
have been made in this class of armored vessels.
The pressure for iron-clads of light draught, which could ascend the rivers and
penetrate the sounds and bays along our coast, was felt to be a necessity. The
operations of our armies in the vicinity of the inland water and adjacent to the
rivers required the constant presence of gunboats. But the men thus employed,




84

The Naval Forces o f the United States.

[January,

as well as the magazines and machinery of the vessels, are exposed, especially in
the narrow streams with high and wooded banks. Some vessels, and not a few
valuable lives, have been lost by these exposures, and in order to afford all pos­
sible protection to the gallant men who encounter these dangers, the Department
considered it a duty to provide armored vessels of light draught for their security.
Contracts were entered into for the construction of twenty vessels on the monitor
principle, each to carry two 11-inGh guns, in order to be efficient, and to draw
seven feet of water.
It was ascertained, however, when the first two approached completion, that
their draft o f water was more than was intended. The heavy armor and the two
11-inch guns, with the machinery to give them proper speed, involved the neces­
sity of enlarging the capacity of each of them. AVhen making these necessary
alterations, it was deemed advisable, under applications from some of the com­
manders of squadrons for boats that should present but a small rise above the
surface of the water, to dispense with the turrets in five of these light-draft ves­
sels, with a view to special operations. The remaining fifteen were ordered to
be enlarged by raising their decks, thereby giving them additional tonnage and
greater draft and making them more efficient, but in other respects carrying out
the original design. This work is now being performed, and most of the vessels
are near completion.
The exigencies of the times and the necessities of the war have stimulated the
inventive faculties of our countrymen to vast improvements in vessels, in engines,
in ordnance and projectiles. That in some instances they are not at first entirely
successful is not surprising. Mistakes and even failures will occur. In nearly
every class of vessels that have been built, and especially those that are armored,
more or less alterations have been found necessary while they were being con­
structed. Only two of the monitor class of vessels, the Dictator and Puritan,
are proposed for sea service. Their success, of which the inventor and builder is
sanguine, is among the experiments that the period and the exigencies of the
country have imposed upon the department.
Pour turreted vessels have been built in the navy-yards, of wood, and cased
with iron— differing therein from the original monitors, which are exclusively of
iron. One of them, the Monadnock, now in commission, has performed her trips
from Boston to Hampton Boads with entire satisfaction, giving assurance that
this experiment, deviating, in essential respects, from others, is likely to be suc­
cessful. The draught of water of the Monadnock is twelve feet, and with two
independent screws she has a speed of ten knots. Four other similar vessels, of
a still more formidable and invulnerable character, are building.
The only sea-going iron-clad ships, besides the two turreted vessels already
mentioned, are the New Ironsides, built in 1862 ; the Boanoke, one of the old
frigates which has been armored, and the Dunderberg, a casemate vessel. For
this vessel the contractor has promised a speed of fifteen knots at sea.
The department has, on several occasions, invited propositions for iron, seagoir^, armored ships, but Congress having declined to make the necessary appro­
priations, no measures have been taken for their construction.
The vessels recently built, and at present constructing in the navy yards, are
of wood, the smaller class of them being gunbouts, eight of which are of the class
of the Nepsic, 600 tons, mounting one heavy pivot and four broadside guns.
There are four of the class of the Nantucket, of 900 tons, mounting one heavy
pivot, with six broadside guns. In addition to these there are four vessels of the
class of the Algona, with a tonnage of 1,350 tons, and proportionate armament.
All of these vessels have very considerable steam-power, and will, as some of
them have already proved, be efficient cruisers at sea.
The immediate wants of the blockade having been supplied by the vessels built
and altered in the navy-yards, and by purchase of the best merchant steamers
capable of bearing heavy armament, the attention of the department has been
bestowed on larger and more imposing ships, such as would be formidable not
only for home defence but for foreign service. The position and influence of a




1865 .]

The Naval Forces o f the United States.

85

nation among the great commercial and maritime powers of the world are to a
great extent dependent on its naval ability. Limited appropriations have already
been made by Congress for vessels of this character. Each succeeding year of
this war has produced from foreign ship yards steamers of greater speed to run
the blockade, and the reliable preventive of this illicit trade must be found in
vessels of increased steam power. By making them of sufficient size they will be
formidable, not only to neutral violators of our laws, but to any enemy. Of the
vessels on which some sacrifice of armament has been made to obtain speed there
are seven building, three of which are already launched, and the others will soon
be ready. Two of these vessels are being built by contract, and five in the
navy-yards. This class of vessels is represented by the Amraonoosuc and the
Chattanooga. There are also in progress of construction twenty vessels with
steam machinery of rather less power, but which are to be much more heavily
armed. Ten of these, of the class of the Illinois, the Guerriere and the Java,
have covered gun-decks, and will carry twenty heavy guns. Two will have a
plating of thin iron as a protection from shells. The remaining ten, of the class
of the Oontoocook and Manitou, building in the navy-yards, are of less size, but
with equal machinery, and intended for greater speed. As all of them will be
provided with masts and sails, they can be cruising vessels and used on foreign
stations.
PRIZES AN D PENSIONS.

The number of vessels captured by the sqadrons since the last annual report,
and reported to the department prior to November 1, is 324, classified as fol­
lows : schooners, 105 ; steamers, 88 ; sloops, 40; brigs, 3 ; barks, 3 ; small
boats, 85. The total number of captures since the commencement of the rebellion
is 1,379, viz.: schooners, 652 ; steamers, 267 ; sloops, 171 ; brigs, 33; barks, 29;
ships, 15 ; yachts and small boats, 117.
The gross proceeds arizing from the sale of condemned prize property amounts
to §14 396,250.51; expenses, §1,237,153.96, leaving for distribution, one-half to
the captors, and one-half to the United States as a naval pension fund,
§13,190,841.46.
The pension roll on the 1st of November, 1864, was as follows :
769 invalids with pensions amounting to .....................
840 widows and orphans amounting t o .......................

150,401 10
139,258 00

1,609 persons receiving a total amount o f .....................

§189,659 10

EXPENSES AND ESTIMATES.

The following are the expenses of the Naval Department the past year, and
the estimates for the coming year :
On the 1st July, 1863, there was an unexpended balance standing
to the credit of the department o f..............................................
The appropriations for the fiscal year ending June 30, 1864, were

§39,101,970 34
76,668,567 36

Total available means.................................................. .
The expenditures of the department during the same time were.

§115,765,537 70
§85,733,292 77

Leaving a balance at the commencement of the present
fiscal year o f.......................................................................
The appropriations for the current year a r e ....................................

$30,032,244 93
109,256,814 54

Making the total available resources for the fiscal year
ending June 30,1865.........................................................

$139,289,059 47

The estimates submitted for the fiscal year ending June 30, 1866, are as fol­
lows :




86

\January,

Public Lands, Mines, and Patents.

Pay of the navy....................................................................................
Construction and repair of steam machinery....................................
Construction and repair of vessels.......................................................
Ordnance and magazines......................................................................
Fuel, hemp, and equipment of vessels...............................................
Provisions and clothing.........................................................................
Navy-yards and superintendents ......................................................
Navigation and Naval Academ y.........................................................
Surgeons’ necessaries and hospitals...............................
Marine corps............................................................................................
Contingent and miscellaneous.............................................................

$23,327,722
17,145,000
24,630,000
9,187,615
14,050,000
13,923,280
4,577,313
562,626
315,000
1,599,087
3,970,018

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

50
00
00
00
00
75
00
00
00
70
33

$112,187,663 28

The expenditures of the department since the 4th of March, 1861, have been
as follows:
From 4th of March to close
of fiscal year, June 30, 1861.............
For fiscal year ending June
30, 1862 ...............................................
For fiscal year ending June
30, 1863 ...............................................
For fiscal year ending June
30, 1864 ...............................................
From July 1, 1864, to November 1, 1864..........................................
Estimated expenditures from Nov. 1, 1864, to March 4, 1 8 6 5 ....
Total........................................................................................

$6,244,35763
42,200,52906
63,211,10527
85,733,29277
41,257,976 72
42,000,000 00
$280,647,261 45

PUBLIC LANDS, MINES, AND PATENTS.
T he Secretary of the Interior reports a revival of the demand for the public

lands, particularly for settlement and cultivation. During the year ending June
30,1804, more than three millions of acres have been disposed of, and including
the quarter ending on the 30th of September, more than four and a quarter mil­
lions of acres. The following is a statement in full:
Acres sold for cash ...............................................................................
“
located with military warrants....................... ^ ........................
“ located with agricultural scrip....................................................
“ certified to States for railroads...............................................
“
taken under the Homestead l a w ..............................................

432,773.90
516,900.00
214,418.14
857,180.87
1,261,592.61

“
disposed of during the y e a r ......................................................
During the quarter ending September 30, 1864, the aggregate
quantity taken for the same purpose was.......................................

3,281,865.62

Making a total of.............................................................................

939,476.90
4,221,342.42

The cash receipts for sales, homestead and location fees, for the same five
quarters, were $1,019,446 44.
The aggregate quantity of public lands surveyed, but not disposed of, on the
30th September last, was 133,517,587 acres. This has been the average quantity
for several years past. The amount surveyed annually has been about equal to
that disposed of annually.
The annual receipts from ordinary sales for four years past have been as fol­
lows :
For the year ending June 80, 1861 . ....................................
«
“
“
1862
“
“
“
1863
“
“
“
1864




$884,887
125,048
136,077
678,007

03
30
95
21

1865 .]

The Book Trade.

87

Nineteen States have accepted the provisions of the acts donating lands “ for
the benefit of agriculture and the mechanic arts,” and have received land and
land scrip amounting to 4,950,000 acres.
THE

MINES.

The reports of the mining interests are very encouraging. Additional dis­
coveries of precious metals have been made during the year in the region flank­
ing the ranges of the Sierra Nevada on the east, in Idaho and Nevada and
Arizona, and the Secretary recommends the appointment of experienced and
skillful mineralogists to make a scientific examination of the principal mining lo­
calities, and of the mineral regions generally, and to report the result. An ap­
propriation would be required for these purposes. The report s lys : “ In that
portion of Nevada through which the Pacific Railroad will pass, many rich veins
have been found, and it is estimated by persons familiar with the subject, that if
the mines now opened there were supplied with the proper machinery, they would
yield ten millions of dollars per month. In the same region vast beds of salt have
also been found, which, from its value in the process of separating the silver in
the ores, has given a fresh impulse to mining. When we reflect that the region
of country in which deposits of the precious metals abound, includes large por­
tions of three States and six territories, and that the richest veins of ore hereto­
fore discovered are as yet but slightly developed, whilst new discoveries are con­
stantly made, it will be perceived that the annual product of the mines in the
United States must soon reach a magnitude, without precedent in the history of
mining operations.”
The mines of New Mexico and Arizona, though regarded as inferior to no
others, are now nearly inaccessible and indifferently wrought. It is therefore sug­
gested whetherit would not beexpedient to grant all, or such portions of the lands
as are requisite, to insure the construction of the necessary railroads, and the
conversion of the sterile lands to a condition of fertility.
THE INDIANS.

The Indian troubles, during the year, have given the department much concern.
The proposition to reverse the policy of making treaties with Indian tribes, and
to abrogate all existing treaties, is discouraged by Mr. U s h e r ; but he suggests
the propriety of omitting all stipulations for the payment of money annuities,
whenever good policy or existing engagements will admit of that course of ac­
tion.
PATENTS.

The inventive industry of the country i3 stimulated rather than depressed by
the war. Last year 6,740 applications were made for new patents ; 959 caveats
were filed; 29 applications for extensions were received ; 4,843 patents were
issued (including re-issues,) and 40 extensions were granted.

THE

BOOK

TRADE.

A History of the Worldfrom the Burliest Records to the Present Time. Yol. I. By
P hilip S mith, B. A. D. A ppleton <fc Co., 443 and 445 Broadway.
T h e title which this volume bears usually suggests to one’s mind a mere dictionary o f
dates; that being about the scope of what are generally called “ Universal Histories.”
We must confess, therefore, that in opening it, we did not anticipate anything less
weighty, and were the more pleased to find it a very different affair. It is a history




[January,

The Book Trade.

88

— not a dictionary— and promises to be a work of permanent value, as a continued
record o f human progress, showing the gradual development and the grand result of
the acts and struggles of all nations.
The author treats his subject under three different heads or periods—the three into
which history naturally divides— ancient, midieval, and modern. The first extends
from the creation to the fall of the Western Empire, and is to be completed in two
volumes ; the second, also in two volumes, will embrace the period from the fall of
the W estern Empire to the taking of Constantinople by the Turks; and the third, to
which four volumes are to be devoted, is to bring the story down to our own time.
Thus, the work will extend through eight large octavo volumes—giviug room enough
for a valuable history, and yet not making it so extensive as to place it beyond the
reach of any.
W e notice that the first volume contains several fine steel-plate engravings, and is,
in fact, in every respect issued in excellent style.
Our Young Folks. A new Magazine published by T icknob.
Single subscriptions $2 a year.

&

F ields , Boston.

We have received the first number of this new periodical for “ Young Folks,” and find
it full of articles both instructive and entertaining. Filling, as it does, an important
corner before unoccupied, and addressed to a class whose characters are forming, we
are glad to see that its pages are to be presided over by editors so well fitted for the
position. I f we would interest young people in books we must make them attractive,
and convey the information they contain, in an agreeable, lively, and entertaining man­
ner. W e know no one able to do this better than G ail H amilton, and feel sure,
therefore, that so long as she is one of the editors, one will find precious little stupidity
between the covers of “ Our Young Folks.” We wish it a long, useful, and successful
existance.
Diary o f Mrs. K itty Trevylyan: A Story of the Times of W hitfield and the
W esleys . By the author of “ Chronicles of the Schouberg-Cotta Family,” etc.,
with a Preface by the author for the American edition. New York: M. W. D odd,
506 Broadway.
Notices of this and other books received deferred until next month.

CONTENTS

OF

JANUARY

NUMBER.

1. C orn eliu s V a n d e r b ilt ...........................................................................

10

2. T h e N a tio n a l F in a n ce s .

a l k e k .........

22

B y T . M . J.

38

B y H on. A m asa W

3. T h e T a e p in g R e b e llio n — I t s E is e a n d F a ll.

4. W h y t h e G o ld R e v e n u e is F a llin g O ff .......................................

49

5 . C o m m e r c ia l L a w .— N o . 17.

I n t e r e s t a n d U s u r y .................

51

6. T h e T r e a s u r y R e p o r t .— T h e P a s t a n d F u t u r e P o l i c y . , . .

55

7 . C o m m e r c ia l C h ro n ic le a n d R e v ie w . ............................................

00

8. J o u r n a l o f B a n k in g , C u r r e n c y , a n d F in a n c e ...........................

66

9. T h e R e c ip r o c it y T r e a t y ....................................................................

75
81

10. T h e N a v a l F o r c e s o f t h e U n it e d S ta tes....................................

11.

P u b li c L a n d s, M in es, a n d P a te n ts ................................................

12. T h e B ook T r a d e ....................................................................................




86
88