The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
T H E
MERCHANTS’
MAGAZINE
AND
C OMME RC I A L
J U L Y ,
R E V I E W.
1 8 6 8.
ON THE TRADE AVITII THE COLORED RACES OF AFRICA. *
I propose to take a general survey of the commerce between the colored
or Ethiopic races o f Africa and the civilized w orld; and then briefly to
consider the means by which that commerce, hitherto confined to the
coast, can be extended to the interior.
The Ethiopic races inhabit that vast country south o f the great desert,
which may with tolerable accuracy be defined by a line drawn from the
River Senegal to Cape Guardafui as its northern boundary; while its
southern limit is the Cape Colony. It thus comprises about forty-five
degrees o f latitude, and is bounded, east aud west, by the Indian and
Atlantic Oceans; its area being equal to one-fifth or one-sixth part o f the
habitable globe.
Apart from any question o f inherent inferiority of race, it is obvious that
the country occupied by the Ethiopians is not calculated to engender
civilization. It lies in too compact a mass, unbroken by bays or inlets;
nor do the rivers afford either defensive frontiers or the means of comrou* Read before the Statistical Society o f London by Archibald Hamilton, Esq.
1
2
ON TH E
TRAD E
W IT H
TH E
CO LO RE D R A C E S
OF
A F R IC A .
\July,
Dication and transport equal to those which divide and traverse the other
divisions of the globe. The great desert cuts it of from the ancient civil
ization of which the Mediterranean was the centre, while the intercourse
subsequently established by the Arabs, is limited and impeded by the
same cause. The rivers are all subject to a diy season, which renders
them during a part of the year unfit for inland navigation ; and they are
all more or less interrupted by rapids and cataracts ; though it is true
equal obstacles have not hindered the St. Lawrence from becoming the
great means in the settlement o f Canada.
There are two circumstances which give reason to hope, not only that
our commerce with the races dwelling on the coast will be rapidly enlarged,
but also be extended inwards. I mean the almost total stoppage o f the
Christian or transatlantic slave trade, and the rapid strides which have of
late been made in the exploration of the continent.
In 1854 Livingstone penetrated from the Cape Colony to Loanda, and
thence he crossed to Quillimane, tracing the course of the Zambesi on his
way. Subsequently he explored Lake Nyanza, and it has recently been
a public consolation to learn that he is now on his way home, most likely
down the Nile, to complete our knowledge of Lake Tanganyika, first dis
covered by Burton. Barth has supplemented the labors of Denham and
Clapperton in Central Africa, between the Niger and Lake Tchad, the
most hopeful and important district of all. Speke and Grant advancing,
northwards from Zanzibar, have discovered Lake Victoria Nyanza; while
Baker, coming in the opposite direction from Egypt, has terminated the
long mystery as to the source o f the Nile, having beheld it issuing from
the great lake Albert Nyanza. Brilliant as have been the results of these
explorations, and others o f lesser note, the field o f adventure is far from
exhausted; much remains for discovery before the map of Africa can be
filled up, and the future highways of commerce be traced out. Happily,
however, the spirit and enterprise of our countrymen are more likely to be
stimulated than diminished by the exploits of the celebrated travelers to
whom I have alluded.
There is one subject which occupies a large space in every book of
African travel— the slave trade. I do not intend to enter into any details
of the horrors attending that traffic; but as human beings have for three
centuries been one of the chief exports from Africa, this subject is insepa
rably mixed up with that of legitimate comm erce; because o f the anarchy
which the slave trade everywhere creates, the ceaseless kidnapping— slave
hunts— and wars undertaken expressly to obtain captives, to the destruc
tion o f settled industry. It is even the principal cause of the difficulties
experienced in exploring the country ; and has, moreover, brutalised the
natives on the coast far below the condition of the people in the interior
1863J
ON
TH E
TR AD E
W IT H
TH E
CO LO R E D
RACES
OP A F R I C A .
3
Within the last few years success seems at length to have crowned our
efforts to suppress the transatlantic slave trade, but the Mabomedan traffic
continues unchecked, or nearly so. Owing to their contraband nature, it
is impossible to obtain accurate information of either at any period. The
matter was carefully investigated by Sir Fowell Buxton, who estimated
the number of slaves exported at 170,000 per annum so recently as 1 8 3940, on data which has never been impugned. To this must be added a
loss of life from the slaughter in wars undertaken for the capture of
slaves, and subsequent mortality, so that the figures are thus stated by
Buxton :
Transatlantic slave trade...........
M a h o m e d a n ....................
D elivered. Loss o f Life. Total..
120,000
290,000
4fl0,000
50,000
5Ql000
100,000:
T ota l.............................................................................
ltO.OOO
830,000
500,000
It would appear, however, from more recent information, that tbeloss of life from the Mahomedan trade is considerably understated by
Buxton.
Such was the most moderate estimate that could be formed o f the
transatlantic slave trade in 1840, and there is reason to believe it was
stimulated for several years by the alteration o f our sugar duties in 1846.
The first effectual blow it received was in 1853 and 1854, when Brazil
abolished the trade and importations ceased ; so that Cuba thenceforward
has continued the only importing country. Since 1864 the slave trade has
almost ceased, a stray cargo now and then being all that has reached
Cuba. The authorities there have o f late been in earnest in preventing
importations, and it is gratifying to observe that public feeling in Cuba
is becoming adverse to their continuance.
I shall now briefly explain the progress which has been made in substi
tuting legitimate commerce for the slave trade along the west coast; and
may remark that this has nowhere been accomplished without compulsion
of some kind in the first instance; and there is too much reason to fear
that, in case of a renewed demand, the trade would once more break out
were our vigilance relaxed. No export of slaves has taken place for manv
years from our settlements on the west coast, viz., the Gambia, Sierra
Leone, and Cape Coast Castle; nor from the adjacent territories under
the influence of those settlements; nor from the Republic of Liberia, nor
the Dutch settlements on the Gold Coast; so that if we except the River
Nunez, the coast between the Gambia and Dahomey, say for 1,500 miles,
has for many years been free from the slave trade. Relying on this
immunity, it was resolved in February, 1864, to withdraw the squadron
entirely from this part of the coast; the consequence was, that in Septem
4
ON
TH E T R A D E
W IT H
TH E
COLORED
RACES
OF A F R I C A .
[July,
ber following, a cargo of slaves was shipped from Nunez (situated between
the Gambia and Sierra Leone), but with which there has been but little
intercourse from either settlement.
It is worthy of note that for many years great pains have been taken by
the missionary societies with the education of the liberated Africans at
Sierra Leone, and the children born in the colony. During six years
ending 1864, between seventy and eighty schools have been maintained
at a cost o f £5,000 per annum, which have been attended by 57,000
scholars, or an average of 9,500 per annum. An important class of edu
cated blacks has thus grown up, who, together with the Liberian blacks,
are actively engaged in trade all down the coast; and ever since the mail
steamers were established, in 1852, they have availed themselves freely of
the facilities thereby offered, to trade at the various places on the coast at
which the steamers call. As many as 150 per month o f these native
traders pass in the mail steamers between the different stations. Besides
Sierra Leone, they are numerous at the Gambia, Cape Coast, Accra and
Fernando Po, while they swarm at Lagos. They are everywhere useful as
middlemen, and have, in fact, driven all white traders on a small scale out
of the field at Sierra Leone ; and the more extensive European merchants
employ them as agents and clerks in their operations on the neighboring
rivers. Of late it has become the ambition of these traders to order goods
direct from England, paying for them in produce. I shall presently point
out how the educated blacks are capable of playing a most useful part in
opening trade with Central Africa.*
Whilst on this subject, I may allude to the progress made by the
republic of Liberia, which occupies a coast line o f about 600 miles.
The first settlement of emancipated slaves from the United States was
in 1820, and in 1847 it was declared a free republic. It now contains
about 30,000 civilized inhabitants, about 15,000 o f whom, with their
descendants, are from America. From 300,000 to 400,000 aborigines
reside within the territory of Liberia, and are brought more or less directly
under the influence o f her institutions. There are about fifty churches
in the republic, representing five different denominations. The educated
blacks in Liberia and Sierra Leone, are intensely religious, and the various
sects, Episcopalians, Wesleyans, Baptists, Independents, &c., are repre.
sented among them just as in England and the United States. Differing
from Sierra Leone, Liberia has been governed since 1847 by blacks alone.
Their constitution resembles that of the United States, and if their pro
ceedings are at times calculated to raise a smile as a parody upon their
* Already, as often as the educated native traders have had opportunities, they have shown
great eagerness to carry small adventures up the Niger, and have even endeavored to form
am ong themselves a company, with a capital o f £25,00U, for steam navigation in that river.
1868]
ON TH E T R A D E
W IT H TH E
C O LO R E D
RACES
OF
A F R IC A .
5
model, it is impossible to deny the good sense, frugality and success which
have attended them so far. In 1861 the revenue was $149,550, against
an expenditure of $142,831. The presidential message for 1866 alludes,
with just pride, to the foundation of the Liberian college, and lays down
a plan for national education. There can be no doubt that this well
ordered and well governed community will play a great part in the civili
zation of Africa. The present state of matters in America will lead to a
considerable accession of strength, 600 emigrants having been despatched
in the course of 1866, and 942 in 1867. The American Colonization
Society, which founded the settlement in 1820, now regularly employ a
vessel in the conveyance of emigrants. The settlers have already been
able to repel all attacks from the natives, and, as they gain strength, will
become aggressive and extend their influence inwards.
For the year 1864 the imports amounted to $162,930, the exports to
$172,608.
I come next to the British settlement of Lagos, which was for many
years the head-quarters of the slave trade in the Bight o f Benin. Situ
ated at the entrance to an extensive lagoon, affording boat navigation
eastward as far as the Kiver Benin, and westward to the notorious king
dom of Dahomey, it possessed unequalled facilities for the slave trade,
enabling the slavers to dodge our cruisers. In 1851 a treaty was forced
on the chiefs and king, and a consulate was established, which continued
until 1861; but those measures being inadequate, we took possession of
the island of Lagos and of one or two points on the adjacent coast,which,
with a couple of gunboats on the lagoons, has answered our purpose
effectually.
A considerable trade in palm oil had grown up under the treaty o
1851. Since we took possession the trade has been seriously interrupted
by a war between Abeokuto and Ibadan, caused by the latter desiring a
direct road to the white man at Lagos, and so avoid paying toll to the
Abeokutans. The ground lost will soon however be recovered, and Lagos
is rapidly becoming the seat of a flourishing trade.
Stopping the slave trade at Lagos had the effect of directing-the current
thence to Whydah, a port in Dahomey ; but of late, owing to the cessa
tion o f the traffic, the king of that country has turned his attention to
legitimate commerce. Some small trade had indeed been carried on
chiefly by the French, concurrently with the slave traffic; and in 1864 a
Liverpool company opened trade at Whydah, the king granting them his
baracoon, or slave depot, as a store for goods. Two other English houses
have sent agents there, and a healthy trade is rapidly in course of devel
opment. I may mention, however, th*t so recently as May or June,
1867, the king tsndered slaves in payment of a debt which he had con-
6
ON TH E T R A D E
W IT H
TH E CO LO R E D
RACES
O F A F R IC A .
[J u ly ,
traded. I am unable to give the particulars o f this trade, which as yet
is in its infancy.
I come next to the rivers, Benin, Brass, and Bonny (mouths o f the
Niger), also Old and New Calabar and Cameroons, generally classed
together as “ oil rivers.” These were at one time the noted haunts of
slavers. In the years 1838 to 1840, treaties were forced upon the native
kings and chiefs, by which they engaged to discontinue the slave trade.
Courts of equity were afterwards established for the regulation of legiti
mate commerce, consisting of the captains, supercargoes, and agents o f
English houses, together with the kings and chiefs of the place. They
take cognizance of all disputes between the English and the natives. A
consul visits the river at intervals, and the system has been found to work
successfully, with only an occasional resort to the squadron; in fact, the
mere presence o f a man-of-war has of late sufficed to restore order. I
am enabled to show, from private statistics, the progress of the trade be
tween the oil rivers and Liverpool. The average during the first four
teen years was 17,982 tons; and during the last fourteen years 24,734
tons; but during the first fourteen years the trade was chiefly with Liv
erpool ; Bristol participated, and of late years the Clyde has also shaied.
It will be observed that there are great fluctations in the imports, which
have been influenced by the prices at home, leading occasionally to sus
pension of trade when the natives were unwilling to submit to reduced
prices ; likewise to bad seasons.
The next point on the coast where there is a considerable trade is the
Gaboon river, which is under the control of the French Government, and
has hitherto been thrown open to all nations. There are five English, two
or three French, one German, and two Dutch houses engaged in the
trade. The police regulations are good, and traders well protected:
until recently the expense was borne by the Imperial Government, but
within the last twelve months they have enforced a charge for a trading
licence, and it is expected will levy a duty of 4 per cent on imports and
exports so as to assist in defraying the expenses of government. A t
our colonies a revenue is collected by similar import duties. I have been
unable to obtain returns of the imports and exports, but these will enter
into the general tables o f trade with the west coast.
Further south we come to the River Congo, notorious as the last seat
o f the slave trade on the west coast. W ithin the last five or six years,
as many as twenty-three slavers have been counted at Ponta de Lena at
one time. Legitimate trade made no progress, until at last an effectual
check was given to the slave traffic by the adoption of a very obvious
course— our Government entered into a contract to coal the preventive
cruisers on the spot, instead o f resorting to Fernando Bo or Ascension for
a supply, leaving the coast and rivers for the time unguarded.
1863]
ON TH E
TR AD E
W IT H
TH E
C O LO R E D
RACES
O F A F R IC A .
7
To prove how effective has been the blockade since this arrangement
was adopted, I may state that within the last twelvemonths 700 slaves
were sent down for shipment, and two slavers appeared on the coast to
embark them— one was captured and the other left the coast in despair.
When my informant left the Congo, the slaves were still on hand, and
have doubtless either been set free or put to some uselul occupation ere
this. Cut off from the slave trade, the natives are now eagerly engaged
in raising produce, while the Portuguese slave dealers are rendering
good service as middlemen in the up-country trade. One Dutch, one
American, three French, and three British houses have established them'
selves in the Congo, with branches along the neighboring coast as far as
the Portuguese settlements at Angola, and an active trade is now carried
on in palm oil and kernels, ivory, coffee, india rubber, copper oar, gum
copal, and ground nuts. The trade has probably increased tenfold within
six years, and the exports for 1867 have been estimated at 250,0001.
Besides the points on the west coast to which I have alluded, there is
an active trade carried on by the French at their settlements at Senegal
and Goree, as well as elsewhere; by the Dutch at their settlements on
the Gold C oast; as also by the Hanse Towns and Americans at various
points; while the Portuguese settlements of Angola and Benguela are
little developed, though ihere are valuable copper mines within their ter
ritory.
As regards the goods shipped to the west coast, I may state that the
demand has for the last ten years or so, been constantly for an improved
quality. The consumption of British manufactures seems limited only
by the possibility o f supplying produce or value in exchange; thus at
the time when returns were unhappily obtained chiefly in slaves, the ex
ports from the United Kingdom were in—
1805
1806
18 '7
1808
1811
1821
............................................................................................ £1,150,000
............................................................................................ 1,660,000
(slave trade ab olish ed )............................................... 1,030,000
............................................................................................
800,000
............................................................................................
400,000
.................................
136,000
This was the lowest point to which they dwindled. About 1830 the
palm oil trade became important, so that the exports of British manufac
tures rose in—
1810 to
18?6 . .
1840 . .
1845 . .
£250,000
300.000
4-0,000
530.000
1850
640,000
1855
1,1 0 0 ,0 0 0
1860
1865
1.300.000
.
1 100.000
As it has been often stated that considerable supplies of cotton may he
8
O N TH B
T R A D E W IT H
TH E
C O LO R E D
RACES
OF
A F R IC A .
[ t T illy ,
derived from Central and Western Africa, I subjoin the qualities imported,
v iz.:—
Cwts.
1856
1857
1858
1859
1860
1861
........................
........................
......................
...................... .
......................
........................
1862 ...............................................
1 8 6 8 * .............................................
18 64*...............................................
1865 ...............................................
1866 ...............................................
CwtS.
8,438
—
—
7,126
9,fc 12
It is true the cotton plant is indigenous, and the soil and climate over
an enormous district are capable of supplying more than we even now
consume; still the needful European superintendence for a large produc
tion cannot be supplied. The means of transport for so bulky an article
do not exist; neither could the capital required for implements, gins,
presses, etc., be prudently invested unless under British rule; so that
many years must elapse, in my opinion, and many changes must occur,
before we can look for any quantity of African cotton, such as would be
sensibly felt in our markets.
A s regards the trade with the natives bordering on the Cape and Natal
colonies, as well as the Dutch republics beyond the frontiers, it is impos
sible to arrive at exact data. Speaking generally, we may assume that
the greater part of the ivory and ostrich feathers from the colonies is ob
tained from the natives, or through their agency and assistance, as well
as a quantity of hides and skins. Commerce is gradually extending
northwards; for example, it is not many years since Livingstone dis
covered Lake Ngami, and now it is within the ordinary range o f the trad
ers in quest of ivory and ostrich feathers. The Caffres and Fingoes
settled within the colony are making marked progress; they now parti
cipate in the carrying trade of the colony, conveying merchandi e in well
appointed wagons from the coast to the up-country, and bringing down
the returns of produce. Their consumption o f European goods is increas
ing, and they now require these to be of better quality; a remark which
applies likewise to the natives beyond the limits of the colony.
As a rough guess merely, I am inclined to set down the trade between
the colonists and the natives beyond the borders, as follows :
Ivory, one-half exports from Cape and N atal.....................................................
Ostrich feathers, three-fourths d itto.......................................................................
H id e s ...................................................................................................................................................................
Cattle, sheep, goats and sundries..........................................................................
£20.000
41,600
10 000
100,000
T o ta l..................................................................................................................
177,500
The eastern coast of Africa, northward of the colony o f Natal, was the
* Im p o rta tio n ceased, owing to Abeokutan war above mei.ti ned.
1868]
O N TH E T R A D E
W IT H
TH E
C O LO R E D
RACES
OF
A F R IC A .
9
seat of a flourishing commerce o f great antiquity, carried on by the Arabs,
who occupied the coast nine hundred years ago, and founded numerous
cities as far south as Sofala; some of which remain to this day, while the
ruins of others have lately been discovered. They traded to India, Persia,
Arabia and Egypt. It was at Malinda that Yasco de Gama, in the year
1498, procured a pilot to conduct him to India.
The Portuguese speedily possessed themselves of the principal positions
on the coast for a range o f about 2,400 mile. Their power did not, how
ever, extend far inland, though they made efforts to advance into the
country, chiefly with a view to reach the gold mines, the produce of which
was brought down the Zambesi to Sofala (supposed by some to have been
the Ophir of the Bible). But instead o f the abundance they expected,
they found the gold, as in other parts of Africa, had to be laboriously
washed from the extraneous substances in which it is deposited.
As the power of the Portuguese nation declined, the Arabs re-established
their independence over a portion o f their former possessions, so that the
coast from Delagoa Bay to Cape Delgado, 1,300 miles, is all that remains
to the Portuguese, while the coast from Delgado to Magadoxo is claimed
by the Sultan of Zanzibar, a range of 1,100 miles. Though, in fact, the
sovereignity thus claimed by the Portuguese and Arabs is merely nominal,
except here and there where forts are maintained. The natives beyond
the range of these forts pay no taxes, and are in fact a source of terror
to the Portuguese who subsidize them at times, and have difficulty in
holding their ground; indeed, Mr. Young has just brought word that they
have been driven out of Senna and all places south of the Zambesi by the
Zulus.
The blight of slavery had fallen upon their settlements, and of the pros
perity for which they were at one time famous, scarce a shadow remains.
The trade consists in gold, ivory and slaves. The slave trade, though
contrary to Portuguese law, has unceasingly been carried on with the
knowledge and connivance of the officials; happily it has been curtailed
by the stoppage of the trans-Atlantic traffic ; but the Portuguese still sup
ply the Arabs with slaves for the eastern markets.
The only healthy
symptom is a trade which seems likely to spring up between our colony
o f Natal and the Portuguese settlements at Delagoa Bay, Quilimane and
Mozambique. It is to be regretted the soverignty over 1,300 miles of
coast should be in the hands o f a jealous and indolent people like the Por
tuguese, who by their commercial restrictions have, in fact, left their own
subjects and the native chiefs little else to engage in but the slave trade,
while they play this dog-in-the manger policy on the coast of a fertile
country, possessed of fine harbors and rivers more or less navigable. Tha
Zambesi, the chief river of all, Livingstone has proved to be navigable for
10
ON TH E T R A D E
W IT H
TH E
CO LO R E D
RACES
OF
A F R IC A .
[July ,
700 or 800 miles inland, interrupted, it is true, by cataracts, but still offer
ing facilities for commerce; while its tributary, the Shire, gives access from
the sea to the great lake Nyassa, with the exception of about 35 miles o f
rapids not navigable, as has been recently proved by Mr. Young of the
Livingstone search expedition.
In the returns o f trade between Portugal and her African settlements*
no distinction is made between those on the west and east coasts ; indeed
they are kept so imperfectly that I am compelled to estimate them as fol
lows, viz.:
Im ports to A frica.......................................................................... ... ...................
Exports frcm A fr ic a .............................................................................................
£300,000
409,000
In marked contrast with the Portuguese, the Sultan of Zanzibar encour
ages European commerce, both on the island so named and on the coast
over which he claims sovereignity, though his influence does not extend
over the heathen tribes beyond the range of his forts. The rapid devel
opment of the Zanzibar trade is a striking proof of the resources of Eastern
Africa, and confirms the accounts which have reached us of its ancient
prosperity. The island is 48 miles long by 15 to 30 broad. In 1861 it
contained about 250,000 inhabitants, and is supposed in the three follow
ing years, to have increased to 300,000, consisting of Arabs, half castes,
and settlers from India, together with negro slaves from the mainland ;
the latter carry on the cultivation, while all trade is in the hands of the
Hindoos. In 1834 the trade of Zanzibar was reported to consist of a few
imports from Arabia, and exports of gum and ivory to Bombay. In the
year ending April, 1866, it was visited by sixty-six square rigged vessels
o f all flags, amounting to 21,000 tons, besides of Indian, Persian, aud Arab
craft 8,000 toDs; and, taking an average of five years ending 1865 the
Im ports w e re ........................................................................................... ...................
Exports w e re ..............................................................................................................
£349,562
377,801
O f these the largest proportion is with British India ; the Germans and
Americans comes n ext; the British trade is, however, on the increase.
These results will show what might be done on the coast with settled
government; but the Island of Zanzibar is an Arab settlement, and I have
to do only with that portion of the trade which is derived from the Ethiopic races on the mainland. It is the chief mart for ivory, and Baker men
tions that when he reached the neighborhood of the Nyanza Lakes, he
found the natives wearing cloth, and possessed of other goods which had
been passed along/rom Zanzibar.
From the last consular report, I find
the imports from the mainland to have been, on an average o f five years,
equal to £225,000, exclusive of slaves.
1868]
ON TH E
TR A D E
W IT H
TH E
C O LO R E D
RACES
OF
A F R IC A .
11
A considerable trade Las been carried on between Zanzibar and Lagos in
cowries, of which there is liere a fishery.
The Zanzibar dominions are the only part of Africa where the slave trade
is legal. There are recognised importations into the Island during a cer
tain portion of the year, under a system o f passes ; during the last five
years the average number entered at the customs has been 14,000 per
annum, on which a duty o f $2 per head is levied. Adults are worth £2
to £7, boys and girls 25s. to 50s. The slaves in Zanzibar are well treated,
but, contrary to experience in America, they do not increase. General
Rigby states that only 5 out of every 100 female slaves bear children ; this
he ascribes not to disparity o f the sexes, but to their unwillingness to rear
children, which will be sold as soon as they grow into sufficient value. It
is uncertain how many of the slaves annually imported are export’ d from
the island to the eastern markets, but it is thought not less than 6.000.
The regulations alluded to are indeed but a mere cloak for a traffic
carried on by the Arabs from places on the coast as far south as Mozam
bique, to ports in the Red Sea and Persian Gulf. These, jointly with what
are brought from the White Nile country and across the Great Desert from
Central Africa, furnish slaves for Arabia, Syria, and Asia Minor, as far as
Constantinople; while those carried to the Persian Gulf supply Mesopot
amia, Persia, and the countries eastward as far as the Indus. The unhappy
negroes are to be found sprinkled over the country, from the confines of
Russia to Cashmere, and from the Indus to the Mediterranean.
The great difficulty we have experienced in our efforts to put down the
Mahomedan slave trade is due to its sanction by their religion. Slavery
has existed among eastern races from the remotest ages, and is in some
respects necessary to their society as constituted. They do not, therefore
understand our views; hence the chiefs and rulers, even though willing,
might be unable to suppress i t ; but in fact they not unfrequently derive
much profit from the traffic.
W e have hitherto been restrained from
putting it down with a high hand, because our policy in the East is con
sidered involved, lest we should excite the hostility of the countries con
cerned. But our proceedings on the east coast, as yet, are calculated to
irritate, rather than seriously interrupt the traffic. It has been suggested
that the coast should be scoured by steam gunboats, capable of following
the dhows into shoal water, which would be less expensive than the cruis
ers at present on the station ; while some of these latter could be employed
with advantage on the Red Sea, so as to intercept the traffic brought from
the White Nile as it crosses to Arabia.
The Egyptian Government has
been induced to place a steamer on the W hite Nile to check the e v il; and
I trust before we have done with Abysinia that something may be arranged
to hinder the transit through that country.
12
ON
TH E
T R A D E W IT H
TH E
COLORED
RACES
OF A F R IC A .
[July,
I come now to the caravan trade by camels from Morocco and Tripoli,
across the desert, which the Arabs and Moors carry on with Central Africa,
W e know but little of that between Morocco and Timbuctoo, except that
the returns are chiefly in slaves. From Tripoli the caravans pass by way
of Mourzuk to Bornou and Soudan— Kuka and Kano being the chief
centres from whence branch caravans pass to other places.
W e are
indebted to Denham and Clapperton, Richardson and Barth, for our
knowledge of this commerce ; and fuller details are expected in a work by
Dr. Rohlf, now in the press in Germany. The cost o f transport is about
£30 per ton, independently o f duties and exactions on every pretext,
except where the caravan is strong enough to bear down opposition ; it
takes four months to cross the desert, so that the cost of goods at Tripoli
is quadrupled by the time they reach Kuka and Kano. The returns are
therefore chiefly in slaves, with the addition o f a small amount in valu
ables, such as gold, ivory, ostrich skins, and a little antimony. Ordinary
articles of produce would not bear the cost of transport.
The return caravans frequently include over 5,000 slaves; large numb
ers of whom die of hunger, thirst and fever on the way— the route being
actually marked by the whitening bones of the wretched beings who have
sunk under the fatigues o f the journey. A whole caravan has been known
to perish for want of water.
A t Mourzuk the slaves are sold, at from £20 to £25 per head, and
from thence smuggled into Tripoli, Egypt and the East. It is in vain
that we have treaties with the Turkish and Egyptian Governments— the
officials connive at the traffic; we have no means of enforcing the
treaties in the case of this inland slave trade, such as we have at sea ;
but it happens we have a more effectual means of extinguishing it by the
readier access to Central Africa afforded by the River Niger, so that we
can undersell by that channel those engaged in the caravan trade, and
bring down returns in produce such as can be raised in abundance. As
an example of how this will work, I may mention that a gentleman
having ascended the Niger in a steamer direct from England, to a point
within a few days journey of Bedd, saw a caravan arrive there with
European goods from Tripoli, part of the goods being loaf sugar made
at Whitechapel ! There can, in fact, be no doubt that so soon as the
Niger trade has been developed, the caravan trade from Tripoli and
Morocco will be extinguished, and with it will end the necessity o f carry
ing back returns in the shape of human beings.
Having thus made the circuit of Ethiopia, I summarise its commerce
with the civilized world in a table which will be found on the following
page.
1868]
O N TH E
TR AD E
W IT H
TH E
C O LO R E D
RACES
OF
A F R IC A .
13
Summary o f the Trade with the Colored Races o f A frica , including
Bullion and Specie,
(Sums In this table given in round numbers,)
Im ports
Exports
Memoranda
into Africa, from A f ica.
United K ingd om ........................ £1,373,000 £1,957,000
Average of 3 years ended 1S06
France ........................................
707,000
1,053,000
*64
Belgium ....................................
8,00025,000
S p a in ...................................................
4,000
2,u00
'63
Portugal.............................................
300,000* 409,000
’64
H olla n d ..............................................
81,000
93,( 00
’ 63
G e r m a n y ...,.......................... . .
70 000*
79,000
’ 64
Uni ed States............ .................
379,000
480,000
Year 1861
50 000
30,000
Brazil............................................
Average o f 3 years ended 1864
East I n d ie s .................................
150,000
227,000
"
3
“
’ 65
Estimate
Cape o f Good Hope and Natal.
130,100*
180,000*
j
Ivory
t
»
United
Kingdom
and
Egypt...................................................
50,000* 75,003
\
ranee, average o f 6 years.
Barbary States.................................
150,000* 71,000
Average o f 2 years ended 1864
M iscellaneous (say)..............
3.530.000
100,000*
4,687,000
H 0,000*
3.630.000
4.787,000
It is to be observed, that with the exception of ivory and gold, no
legitimate commerce has yet been established with Central Africa.
Europeans have in fact as yet traded with the natives dwelling on the
mere outskirts of this vast territory, and though the trade on the west
coast has reached respectable dimensions, it is still capable of being
largely increased ; and, as I have shown, is rapidly increasing. That of
the east coast is well nigh neglected.
The Arabs are the only people who have established a regular com
munication with Central A frica; by introducing the camel from Arabia,
they were enabled to open paths through the desert, which had previously
defied all efforts.
By successive migrations they became in time the
ruling power, introducing the Mahoraedan religion and Arab civilization,
the traces of which latter can be discovered to this day. They founded
kingdoms, ample accounts of which have been transmitted to us by the
Arab writers of the twelfth, thirteenth, and fourteenth centuries; while
modern travellers have ascertained that these countries in Central Africa
are now inhabited by a variety of races, some of them red or chocolate
color, and differing in shades of black. The black tribes again range
from those with high features, approaching the Caucasian, to the common
negro. Of all these races the Felatahs are the most warlike, and they
are supposed to have emerged from the condition o f a mere pastoral tribe,
and to have founded their powerful empire of Sokatu, within a century
from this time. They are still encroaching on their neighbors.
Vyitli the exception o f some few nomadic tribes, the people for security
live chiefly in large towns fortified by mud walls, sufficiently strong to
* Items which have been estimated.
14
ON
TH E
T R A D E W IT H
TH E
CO LO R E D R A C E S
OF
A F R IC A .
\Jllly,
resist ordinary attacks, and round these towns cluster agricultural Tillages.
The space within the walls is usually extensive, the houses are interspersed
with cultivated fields, and this renders it difficulf to estimate the popula
tion with accuracy; but it is certain that many of the towns contain as
many as 50,000 to 60,000 inhabitants, though some tiavelers rate them
as high as 100,000.
In all the towns, markets are held every two or three days; large
numbers from the neighbouring villages attend them ; and although
their dealings would appear to us trifling, still there is everywhere shown
a strong love of trade.
Cotton and indigo are cultivated, and in many towns there is a con
siderable manufacture of cotton cloth, noted for its excellent quality and
the durability of its dye, which latter equals, if it does not excel, in
quality anything done in Manchester. Besides cloth, there are manufac
tures of leather, as saddlery, bags cushions, &c. The art of smelting is
understood, and in some places gold chains and ornaments are manufac
tured with creditable taste and skill. The trade of the blacksmith is
everywhere plied. A t the Exhibition of 1851, the late Mr. Robert
Jamieson exhibited some specimens of native copper ware, tinned inside,
rudely done no doubt, but proving they possess that as well as several
other useful arts.
Salt is a prime article of com m erce; it is brought by caravan from
certain points in the great desert, and likewise from the coast.
Some of the canoes on the Niger, approaching the sea, are large
enough to convey upwards o f one hundred people; and Park saw one as
high up the river as Sego, carry four horses and six or eight men.
The medium of exchange differs in various places. In Kano it is
cowries; in Bornou, cloth ; in Loggun iron, where indeed, in Denham’s
time, a kind of iron coinage was in use, and Baikie saw the same thing
in 1854, when he ascended the Tchadda. In general, in all important
transactions, the value is expressed in the price of a slave.
The religion of the dominant races is Mahoraedan. The only written
character is the Arabic, and the Koran is, o f course, read in all mosques
__though sometimes the reader does not understand a word, and the
hearers very seldom, if ever.
Disputes are adjusted by palaver, when professed advocates, who can
expound the Koran, conduct the cause o f the litigants, often with much
ingenuity. These palavers are, indeed, everywhere a marked feature of
the native races, as they are, one and all, noted for loquacity.
The ] roportion of slaves to free population differs in various countries.
At Kano, Clapperton says the free population was in the proportion of one
to thirty slaves; other travelers estimate in other places the proportion of
1868]
ON TH E TRAD E
W IT H
TH E
COLORED R A C E S
OF
A F R IC A .
15
slaves to vary from two-thirds to four-fifths. There is, however, a wide
difference between the domestic, or born slaves, who form the bulk, and
slaves who have been purchased or captured. The domestic slaves have
eertain well established rights, only give up a portion o f their time to
their masters, and cannot be sold out o f their districts except for crime,
adjudged in due form by palaver. In short, it is rather a mild form of
serfdom than slavery.
All these facts bespeak a certain security o f property and industry pro
tected, as well as the elements o f civilization. There are, however, no
traces of antiquity— no works of art— and it is wonderful that so much
of the Arab civilization should have survived, amid the constant slave
hunts and wars which for three centuries have prevailed to supply the
demand for slaves for America. That demand has only now ceased, so
that slaves are no longer sent down from these countries to the coast, and
they are, therefore, ripe fur legitimate commerce. To this rich and popu
lous region there is ready access by the River Niger, next in size to the
Nile, but destined to play a still more important part in the civilization
of Africa, affording as it does, together with its equally important branch,
the Tchadda, a noble highway to the very heart of the continent.
The history, too, of the Niger is not a little strange. The sources of
other great rivers have frequently been the object of curiosity, but the
Niger alone has been distinguished b y the interest attaching to its junc
tion with the sea. Its existence was successfully known to the Egyptians,
Greeks, Romans and Arabs, the latter, indeed, having settled on its banks
at Timbuctoo. An enormous body o f water was known to flow eastward
towards the great desert; it was supposed to be lost in the sands o f
Sahara, or to be a branch of the N ile; and other theories innumerable
were from time to time put forth, until 1830, when the problem was
solved by Richard Lander, who, extending the previous achievements o f
Park, followed its lower course to the sea, and laid open the long-coveted
channel for commerce with Central Africa.
The first attempt to render Lander’s discovery available, was by a com
pany formed in Liverpool, which sent out an expedition consisting of two
steamers, accompanied by the late Mr. Macgregor Laird, who published
an interesting account of its proceedings and misfortunes. Having en
tered the river too late in the season, the steamers grounded at the con
fluence of the River Tchadda. Out of 48 men 9 only survived, and the
capital of the company was lost.
Mr. Robert Jamieson, a merchant of Glasgow, next fitted out a steamer
in 1839. His operations were commercially unfavorable ; but they added
greatly to our knowledge of the Niger and its delta, besides exploring
the Rivers Benin and Old Calabar. The loss o f life, though great, was
not so deplorable as on the previous attempt.
10
ON TH E T R A D E
W IT H T H E
CO LO R E D
RACES
OF
A F R IC A .
\July,
In 1841 followed the well known Government expedition, which cost
the country upwards of £200,000, and accomplished absolutely nothing.
The failure of the expedition was foreseen by Mr. Jamieson and Mr. Laird,
while the late Mr. Thomas Stirling wrote to Lord John Russell predicting,
with marvelous accuracy, the misfortunes which ensued. Though the
sickness was general, the loss o f life did not exceed 53 out of a comple
ment of 303.
In marked contrast with this deplorable failure was the expedition fitted
out by Macgreggor Laird in 1854, at his own risk, but partly assisted by
Government. Under charge of Dr. Baikie, the steamer ascended the
Tchadda 300 miles beyond the point previously reached, and returned to
Fernando Po after having been in the river 118 days, without the loss o f
a man. This gratifying fact, so different from all previous experience,
was due to better sanitary arrangements, and the use of quinine as a
preventive ; also to the plan of manning the ship with blacks, and send
ing the smallest possible complement of Europeans to officer the ship and
work the engines. B y the observance o f these rules, the frightful mor
tality has been obviated, which previously was the sure attendant of a
river expedition.
Notwithstanding that this expedition was merely one of exploration,
the produce picked up in exchange for outward cargo realized £2,000.
Encouraged by these results, Mr. Laird entered into a contract with
Her Majesty’ s Government, binding himself for a small subsidy to main
tain steam communication on the river and its tributaries, and to carry
goods and passengers for all who might offer. He further embarked a
considerable capital in trading stations at various points on the river.
In 1857, the returns re a lize ! ab ou t.....................................................£4,000
“ 1858, owing to various drawbacks, they w e re........................... 2,600
“ 1859, they realized ab ou t................................................................. 8,000
In 1S60, there was no ascent, owing to the hostility o f the natives in
the delta and the absence o f a promised convoy. This, however, led to
the conclusion that the best way to remove the hostility of the people in
the river and delta is to trade with them at proper intervals, since it was
proved on this occasion that their hostility arose, not from the presence of
white men in the river, but because the steamers gave them the go-bye,
whereas they have been in the habit of levying dues on all canoes passing
up and down.
Unhappily, while maturing these plans, Mr. Laird died in 1861, and
it became my duty as his executor to close up these most interesting
operations. Accordingly the steamer made its final ascent in 1861, and
the year’s trading in the delta and river realized 10,000f.
During the next four years a gunboat was sent up annually with sup-
t
1868]
ON TH E TRAD E
W IT H TH E
COLORED
RACES
OF
A F R IC A .
17
plies for Dr. Baikie at the confluence, where he held the post of agent for
Her Majesty’s Government, a post which has since been raised into a con
sulate, and is now held by Mr. Lyons McLeod.
The Niger enterprise has since been taken up by a Manchester com
pany, unsupported by a subsidy. In 1865 they sent a steamer up to the
confluence with a well-assorted cargo and an experienced agent, which
resulted, I understand, in the most successful year’s trading yet attained.
The operations of 1866 and 1867 have not transpired, but if not equally
successful it has not been due to any inherent obstacles, but rather to
the limited scale on which they have been conducted. Whatever may be
the result of the spirited operations of this company, they have certainly
made valuable additions to our stock of experience.
The truth is, that at present no steamer will pay her expenses on the
river. The caravan trade has to be diverted gradually from the desert
routes to Tripoli and Morocco towards points on the rivers Niger and
Tchadda. New markets have to be established, and new industries have
to be created, to supply returns in produce, before the traffic will suffice
to cover the heavy expense of steam navigation. Returns will be obtained
in ivory, shea butter, indigo, and other articles o f produce, and already the
native traders, availing themselves o f the steamers, have brought down
native cloths made in the interior, tobes, fine mats, and other goods^
which sell well on the coast. But to effect any good in the Niger steam
navigation is indispensable; and to maintain this, a subsidy for five years
I consider would suffice, as by that time it would become self supporting.
Whoever embarks in this enterprise without a subsidy, must be prepared
to incur heavy loss for several years, merely, if successful, to open the
way to others who would be eager to reap the fruits of his outlay.
Impressed with these views, I urged on the Government the advantage
o f continuing the subsidy granted to the late Macgregor Laird, to who
ever would carry out his plans, with such amendments as experience has
since suggested. These were to place suitable steamers on the river for,a
monthly service to the confluence during eight months of the year, while
it is navigable for cargo vessels; to offer every inducement to the native
traders (educated blacks from Sierra Leone and Liberia) to enter into
the trade and become a useful class of middlemen; to employ them
freely as clerks and agents under European superintendence; to form
trading sections at proper intervals, and keep the same stocked with
goods, so as to obviate the hostility of the natives, and thus make sure of
the ground as far as the confluence ; operations could subsequently have
been pushed up the Tchadda in sea-going steamers 300 miles above the
confluence, or 570 from the sea, and up the Niger 470 miles from the
sea to the rapids of Boussa, beyond which the Niger is again available
‘1
18
TH E
EASTERN
Q U E STIO N
IN
EUROPE.
{July,
for transport through a fertile country ?s far as Bammakoo, a distance of
nearly 1,000 miles.
An influential company offered to embark 80,000/. in steamers and
trading stations to carry out these operations, stipulating for a subsidy of
6,000/. per annum for five years, which they considered would be equiv
alent to sharing the loss on the first two or three years equally between
the Government and the company. I regret to say, that although this
offer was approved by Lord Palmerston, and recommended for adoption
by Lord Russell at the Foreign Office, in which department the matter
originated— the scheme was vetoed at the Treasury.
I trust I may be excused for dwelling so long on the Niger enterprises,
because it is impossible to over-estimate the importance of that majestic
river, as the only available highway to tLe Mahomedan countries of the
Soudan— populous, productive, and semi-civilized— the key to the regen
eration of Africa.
In conclusion, I may be allowed to express a hope that the success
which has at length crowned our efforts for the suppression of the slave
trade on the west coast, may not lead to a premature withdrawal of the
squadron and the relaxation of our vigilance— but rather that the same
system may be extended to the east coast, so that a flourishing trade
may be established there as it has been on the west— that we may
press for more stringent treaties with Persia and Turkey, Egypt and
Muscat, so that the sea-borne slave trade may be stamped out whereso
ever it may be found— and that although we cannot directly reach the
inland slave trade it may be as effectually extinguished by the encourage
ment of steam navigation on the Niger. By these means it may be that
the gloom which has for long ages settled upon this continent, will, in
our time, be lifted up, and the dawn of commerce, civilization, and Chris
tianity be hailed throughout the length and breadth o f Africa.
THE EASTERN QUESTION IN EUROPE.
The Summer has at last co m e : and in the Old W o rld the press and
public men are putting to this “ late guest” the question which the
father o f the bride in Sir W alter Scott’s ballad addresses to the young
Lothinvar, “ O come ye in peace, or come ye in wav'?” A practical
question it is in this case, o f the gravest importance, not to the press and
to public men in Europe alone, but to all men everywhere; to the
farmers o f Illinois and to the merchants o f New Y oik as well as to the
bankers o f Paris and to the politicians o f Berlin.
The French W a r
1868]
TH E
E A ST E R N
Q U E STIO N IN
EUROPE.
19
Minister is making formidable reports upon the efficiency o f the new
Chassepot rifle, which did such cruel service at Mentana upon the young
Italian volunteers o f Garibaldi’s luckless expedition, and which has now
been put into the hands o f every soldier in the tremendous army o f
France. The French Minister o f Marine announces that the French
fleet is now ready for extensive operations, and that its reorganization
as an iron clad navy is fast approaching completion.
The questions
whether it is not necessary for France to fight some one, and whom it
is best for France to fight, are daily discussed in the French journals,
just as they were two years ago after the Prussian victory o f Sadowa—
just as they were a year ago after the close o f the great Paris E xpo
sition. The reserves o f the Bank o f France continue to be increased.
The distiess in the manufacturing districts in France is so great as to
furnish the advocates o f protection with an opportunity upon which
they have eagerly seized, o f denouncing the commercial treaty o f I860
with England as the source o f woes unnumbered.
In the French
capital the Jaws against gatherings in the streets are enforced with a
severity unknown for ten years past; and the restrictions imposed by
Power upon the Press are sharper, more vexatious and more irritating than
ever. AH this, it must be confessed, has an aspect o f coming conflicts,
and goes far to justify the apprehensions o f a general European war,
which, the cable reports to us, are loudly expressed throughout France
and the Continent.
Furthermore, it is obviously impossible that Europe can for any
great length ot time go on in her present state o f “ armed peace ”
without a serious explosion. The burden imposed upon the u’ealth
and industry o f the Continent by the existing armaments of all the
powers, is not only utterly without precedent; it is wholly incompatible
with the spirit o f the age and the tendencies o f public opinion even in
the least enlightened o f European countries. If the greater powers
of Europe were now ruled as they were, for example, in the time o f Fred
erick the Great, or c f the first Napoleon, by autocratic sovereigns sub
stantially independent of the popular will and the popular intelligence,
it might be possible to protract indefinitely a state o f things which in
all the European monarchies compels a sort o f financial congestion, and
which in some o f them, as for example in Austria and in Italy, amounls
to a deliberate organization o f public insolvency. But there is no one
European country to clay, unless we are to except Spain, in winch the
government is exempt from the necessity o f cajoling if it does not con*
suit the o p in io n 'f the public, and*there is no one country of Europe
in which the public has not already begun to give signs that it will
not much longer acquiesce in the actual status o f things. I f France
20
TH E
EASTERN
Q U E STIO N
IN
EUROPE.
[July,
and Germany, for example, are to keep on foot between them nearly a
million and a half o f armed men, and to expend upon their military estab
lishments sums amounting in the aggregate to more than one-fourth o f
the whole public revenues o f both nations, it is but natural and reason
able that Frenchmen and Germans should sooner or later demand that
the necessity for these enormous efforts be clearly demonstrated. That
necessity can only be demonstrated by the dread reality o f w a r; the
sole alternative o f which is a general disarmament.
O f the latter we
see no sym ptom s; every suggestion looking to such a result which
has been put forth by various governments during the last twelve month
having been received with indifference. If Europe then be steadily drift
ing towards a general war, in what quarter is its outbreak to be
expected ?
The conflict between France and Prussia, which was last year regarded
as imminent, has been growing more and more improbable with every
month which has followed the conferences held by Napoleon III. with
the Emperor o f Austria and his premier, the Baron Von Beust, at Salz
burg in September, 1867. Such a conflict, had it broken out in July
or August, 1806,while South Germany was still smarting underthe shame
and surprise o f its overwhelming defeat b y the Prussian arms, might
perhaps have resulted in breaking up the Prussian schemes for a reorg
anization o f Germany around the Prussian throne. Austria, Bavaria,
Wurtemburg, Baden and the Ilesses were then really in arms against
Prussia; Saxony had not then lost her position irretrievably, and Han
over was in a ferment of hostility to its Prussian conquerors. Had the
French then crossed the Rhine as the allies o f South German independ
encies they might possibly have been welcomed, and their work achieved.
B.ut when Napoleon III visited Austria in September, 1867, he had
abundant occasion to satisfy himself that the French opportunity o f 1866
had gone by never to return; that the expulsion o f Austria from Ger
many had been accepted b y Austria herself as an irretrievable fa ct; and
that the hope o f a real German unity had pretty thoroughly mastered,
even in Bavaria aud W urtemberg, the traditional dislike o f the Catholic
South Germans for their stiffnecked, arrogant and Protestant brethren
o f the North, Napoleon III came back to Paris from Austria, there is
reason to believe, profoundly satisfied that any French interference in
German affairs would only precipitate the whole German people into
the arms of Prussia. H e brought back with him also a new programme
o f European politics for the new future, a programme concocted by him
in many conversations with the able and far seeing statesman Von Beust,
who, escaping from the ruins o f the Saxon monarchy, has contrived to
find a refuge in the highest post o f the Austrian Empire.
To this
1868]
TH E
E A ST ERN
QUESTION
IN
EUROPE.
21
new programme it was necessary not only that France should make
herself at once more formidable in the field than she had ever before
been ; but also that Austria and Prussia should put themselves in the
highest condition o f military efficiency; and that all the efforts o f the
leaders o f opinion in the three countries should be directed toward
appeasing the resentments, distrusts and jealousies b y which the masses
in each are animated towards the others. F or this new programme o f
European policy, it is asserted on the highest authority, tends to no
less a result than the substantial expulsion o f Russia from E urope; to the
reconstruction o f the Polish nationality and o f the Scandinavian power,
and to the greatest extension o f Austria eastward to the Euxine.
Many signs have recently concurred to show not only that such a pro
gramme as this has been conceived, but that it has been advancing
towards its fulfillment. The extraordinary efforts which the Russian
government has been making during the last three or four months to
“ crush out” utterly the “ poison o f Polish nationality” from the prov
inces which were known down to last year as the “ Kingdom o f Poland
the sudden reappearance o f the “ Polish Societies” in Paris and in Switz
erland ; the repeated declarations o f Count Bismarck that peace is not
and will not be in peril between Paris and Berlin; and the mysterious
visjt which Prince Napoleon, a well known partisan o f the extreme
anti-Russian movement in Europe, is now making to the Emperor
o f Austria at Vienna, may be enumerated as among the most strik
ing o f these signs.
Simultaneously with these indications we have the Turkish Govern
ment suddenly taking the initiative in propositions o f reform more
liberal than any which have ever been proposed to it by its European
allies— propositions which proceed directly from the Sultan, and which
certainly tend to put the Moslem authorities in a very favorable light
o f contrast with the Russian policy towards Poland.
This liberal
demonstration on the part o f the Sublime Porte has been] responded
to in Serviaby the murder of the reigning Prince o f that country, which
has long been a great focus o f Russian intrigues for the dismemberment
o f the Turkish E m p ire; and by a vivacious renewal o f the Greek
clamor for an extension of the Hellenic monarchy.
W e cannot therefore but regard it as eminently probable that the
“ Eastern Question” is on the eve o f assuming pracatical and perilous
shape; and that Russia may be about to take upon herself the dread
responsibility o f provoking such an explosion o f that question as must
almost certainly lead to an armed interference o f Austria and France
in defence o f the Turkish authority. The extreme and restless “ Mus
covite Party ” appears to have got so completely into possession o f
22
PROSPECTS
OF
TH E
COTTON T R A D E .
[July,
the Imperial machinery at St. Petersburg!), and to he so resolutely hent
on an effort to arrest the progress o f Austria towards the consolidation
o f her power on the new basis made for it by the results o f Sadowa,
that such an outbreak in the East must almost inevitably lead to a new
war between Russia and the allies o f Turkey. In this war, should it come,
Prussia would occupy at first a position curiously analogous with that
held by Austria in the Russian war of 1854; but if the speculations
in which we have indulged as to the ultimate designs o f Napoleon and
o f Von Beust be, as we believe them to be, well founded, and if the
arrangements which have so long, as we believe, been maturing to
bring Count Bismarck into harmony with those designs have borne their
fruit, we may expect to see Prussia also wheel into line with the West*
ern allies against the Empire o f the Czar.
In that event there can be
little doubt that the conflict would result in effecting a complete and
most important change in the map o f Europe. W e should then look to
see the policy o f Peter the Great and Catherine utterly foiled ; Ger
many constituted, with the consent of France and o f Austria; Poland
and Scandinavia erected into a powerful outwork o f the W est against
Russia, and Austria become in fact, as she is in name, the QZster Reich
or Empire o f the East.
The possibility o f changes such as these is beyond a doubt, and, consid
ered merely as a possibility, they are o f such a nature, and so impor
tant, as to make it worth while for us to watch with enlightened atten
tion every move in a great political game, which may have so profound
a bearing upon the future o f Europe and o f the world. If events like
these, or events o f equal importance, be not indeed on the point o f com
ing to pass, as the upshot and excuse o f the tremendous military
reorganization o f Europe during the last two years, the burden o f that
reorganization will assuredly bring it to the earth ere long with a crash
not less startling, perhaps, but far less compatible with the welfare of
mankind.
PROSPECTS OF TIIE COTTON TRADE.
It would be premature, as yet, to attempt any definite estimate o f the
growing cotton crop. There are, however, some generally recognized facts
which foreshadow what may be expected under certain conditions ; and
to specify these is all we now propose fo contribute toward the elucida
tion of this much canvassed question. The unsatisfactory results to the
planters of the last crop induced a general limitation of the area planted
this year. The factors, as well as the planters, had been impoverished,
1868]
PROSPECTS
OF
TH E
COTTON
TRADE.
23
and were neither able nor willing to make liberal advances to the growers.
They took the view that the true course, pending the high prices of food
products, was to turn more attention to the growth of cereals, and by
curtailing the production of cotton help to enhance its price. To such
an extent was this policy acted upon, that the original planting afforded the
prospect of a crop below that o f 1867. The natural effect of this ten
dency was to cause an advance in the price of cotton at Liverpool from
7d. to 13d. during the period o f planting; and this advance, again react
ing upon the planters, induced them to place more land under cotton.
Ordinarily, March planting is deemed unpropitious; in this instance,
however, the season has favored the crop, and the March cotton appears
to be unusually promising. A comparison o f reports from all sections o f
the cotton region would give the following result as to toe area o f land
planted compared with last year : North Carolina, 10 per cent less;
South Carolina, 20@ 25 per cent less; Georgia, 25 per cent less;
Florida, about the same as in 1867 ; Alabama, 15 per cent less; Louisiana,
20 per cent more; Mississippi, fully equal to last year ; Tennessee, more;
Arkansas, more; Texas, fully up to 1867. Setting off these accounts one
against another, we have, as an average result, an area under cotton
about equal to that o f last year. In most of the States, the crop is re
ported rather backward, the principal exceptions being in Tennessee and
Arkansas. W ithout exception, however, the stands are represented as
unusually good, the plant healthy, and the condition of the land favorable.
There has been no appearance of the army worm, except in some parts of
Texas, at which no concern is now felt in the vicinity affected. The
weather has hitherto been unexceptionally favorable. The heavy fall
of rain at the North appears to have been accompanied with an unusu
ally moist condition of the atmosphere South ; which has been con
ducive to a vigorous and healthy vegetation. Nor does there appear to
have been any neglect of the culture owing to the idleness of negroes. A ll
accounts represent that the late severe experience of the colored popula
tion, bordering in some districts upon famine, have produced among them
a greater willingness to work, and for reasonable wages; the result
having been that the planters have found it practicable to keep the
crop clean and in good condition. To sura up, then, we have about the
same acreage under cotton as last year, with a much better condition o f
the plant. It appears, therefore, that as the crop now stands there is a
reasonable prospect of a better yield than last year. There are yet the
contingencies of weather and worm to encounter, of which the event
only can be the exponent; but, providing that no unusual misfortune
should arise from these sources, we may hope for a fair increase on the
yield of 1867.
24
PROSPECTS
O P TH E
COTTON T R A D E .
[July,
An accurate knowledge of the prospects of consumption is also neces
sary to an estimate of the probable future value of cotton, a question at
present of more than usual interest, yet also one of unusual doubt. The
rapid advance in the staple at Liverpool early in the year has somewhat
unbalanced the judgment o f the trade, and produced considerable irregu
larity of movement. The decline to 7d. per lb. induced a sudden revival
o f the demand for goods; and spinners and manufacturers, long stagnant,
accepted immense orders. To fill these engagements, a consumption
averaging 66,000 bales per week was required for the first 15 weeks of the
year, and the consequent demand produced an advance o f 5 fd per pound
within four months. It soon became apparent, however that this immense
production of goods so far exceeded the wants o f the trade that the price
of goods ceased to follow the advance in raw material, the greatest rise in
cotton being 5fd . per lb., and in cloth only 4|-d. per lb. Messrs. Ellison
& Haywood’s Liverpool Ciicular o f June 1, has the following noteworthy
remarks upon this feature of the trade :
A t the opening o f the year the price o f Middling Uplands was 7J1, per lb .; 4 Jib.
Printers 4s. 9d. per piece, and fijlb . Printers 6s per piece averaging together 13-J-d.
per l b .; 71b. Shirtings 7s. 9d. per piece, and 8Jib. Shirtings 8s. 9d. per piece, averag
ing together 13d. per lb. The average price o f these four descriptions o f goods was,
therefore, 12d per lb., and the margin in favor o f manufacturers 6^d. per lb. Work
ing out the quotations at the close o f each o f the past six months w e have the follo w in g result:
Dec. 30............................................
Jan. 31............................... ...........
Feb. 29.............................................
Mar. 31............................................. . . .
April 3 0 ........................... ................
May 30..............................................
........................
A v ’ g e o f 4 ^ A y . o f 7 to Average
lb Shirt- Margin
Mid. Up- to 5 U lb.
Printers,
ings per
per
lands,
per ib.
per lb.
pound.
pound.
13d.
13% d.
e% d .
14%
6%
14%
15%
6 5-16
15%
5%
15%
15%
11%
411-16
11%
11%
16
15%
4%
Here it w ill be seen that piece goods followed the rise in cotton until the latter
reached 9d. to lOd. per lb. ; but after that the raw material shot far ahead o f manu
factures, so that from the close o f March to the present time the margin o f prices, as
compared with the average o f the previous three months, has shown a difference o f
from I d .@ l| d . against producers. Hut the most important fact exhibited by the
table is that at the highest point cloth did not exhibit an advance r f more than about
4Jd. per ib., while cotton showed a rise o f 5Jd., or, in other words, piece goods
ceased to follow cotton beyond 11 Id . per lb ., and even then the response came som e
time after the latter price had been obtained in Liverpool.
A similar discrepancy between the advance on cotton and on goods
obtained in our own markets ; for the illustration of which we present the
following comparison o f prices of cotton and of sheetings at New York :
December 27......... ................................................................
Jai uary 3 1 .......................... ................................................
J 'e b u a r y 2 8 ...........................................................................
March 27 ................................................................................
Middling
Uplands.
15^ ce ts.
19K@19>$j
22 cents.
26 “
Sheetings,
Atlantic H .
15cenrs.
15^
“
19
“
16>2 “
1868]
P
ROSPECTS
___________
O F TH E
25
C O TT O N T R A D E .
These comparisons show that there is a point in the value of goods at
which consumption begins to contract, and they also indicate with more
or less clearness where that point lies. The advance at Liverpool in the
price of shirtings of 4-J-d. per lb., produced such a check on the demand
that sales to spinners, from being 66,000 bales per week in January,
February, March and most o f April, fell in May to 33,000 bales per
week. This reduction of one-half in the consumption, however, is not
for obvious reasons to be considered as the measure of what consumers
would take at the then current prices of goods; but rather as meaning
that the markets were so over stocked that, with the supply of raw material
in the hands of spinners, only that small amount was required to meet
the wants of the trade. How far the present large stocks o f goods may
continue to keep down the spinning demand is a question of much practical
importance, yet one not easily determined. The cotton goods trade is not
especially active in any part of the world, and is not likely immediately to
become so. The exports of cotton goods from Great Britain to 16 prin
cipal countries for the first three months of the year were 583,000,000
yards against 4*78,000,000 for the same period of last year. The increase
occurred chiefly in the shipments to India, China, Turkey and Australia,
and has been followed by a sharp reaction in those markets; and as these
countries have been taking nearly two-thirds of the exports, it is evident
that a consequent reduction in the shipments in that direction must tell
materially upon the cotton trade. This conclusion coincides with the
general adoption of short time bv the Lancashire mills, and warrants the
expectation of a continued limitation of the consumption of cotton.
A glance at the probabilities of the immediate supply will further indi
cate the probabilities as to the value o f the staple. The exports of cotton
from the United States may be considered as almost at an end until the
new crop comes to market. Our total stock is now reduced to about
115,000 bales, or about 130,000 bales less than at the same period of last
year; so that our own spinners will require about all our supply. The
supply of Great Britain for the three months, June, July and August,
may be thus stated as compared with 186*7 :
Stock at Liverpool May SOtti................................................................
Stock at London June 1 — ................................................................
A t sea for Liverpool May 30...........................................................................
“
“ Loudon ,
“
Im ports from other sources (estim ated)......................................
1868.
kale3.656 976
“ 36,720
“
482,543
“ 60,000
Total supply for three m onths......................................................... hales. 1,296,548
1867.
867,5-39
56,910
559,8*5
“ 60,30988.553
60,000
1,632,857
The supply for the next three months may thus be taken, in round
numbers, at 1,300,000 bales,against 1,632,000 bales for the same period
of last year. The exports for this period, taking the average of 1867 as
the basis, may be estimated at 190,000 bales; which leaves 1,110,000
26
M IL W A U K E E
AND
ST. P A U L
AND
P R A IR IE
DU
C H IE N
RR.
{Ju ly,
bales for consumption and for stock at the close o f the three months.
Now a consumption at the average rate of the year 1867, viz., of 42,245
bales per week, would require 549,185 bales for three months, leaving for
stock at the ports on September 1st. 560,815 bales, against 890,000 bales
at the same date of last year, and 555,000 bales on January 1st, 1868.
Beyond this period it would seem that the trade, if all things continue
favorable for the growth o f the plant, may count upon a somewhat
increased supply from the United States, and probably fully average
receipts from India; but upon the course of the trade for 1868-9 we
decline at present to speculate; since with even an increased supply
(which is as yet uncertain) so much depends upon consumption, and
the consumption may be largely influenced by an abundant wheat harvest
and consequent cheap food. So far as respects the three months ending
September 1st, there appears to be nothing except unfavorable future reports
as to the growing crops to justify higher prices than were current at the
same period of last year, when the Liverpool quotations ranged at
1 0 £ d .@ ll£ d .
MILWAUKEE AND ST. PAUL AND MILWAUKEE AND PRAIRIE DU CIIIEN
RAILWAYS.
These railroads are now virtually consolidated, having been operated
together through the year 1867, and agreements made for their final
union. The report now before us is the fourth of the Milwaukee and St.
Paul, and the seventh of the Milwaukee and Prairie du Chien Company.
During the year the litigation which the St. Paul Company had been com
pelled to carry on with parties claiming to own the Eastern Division of the
La Crosse and Milwaukee Railroad, and a portion of the rolling stock,
has terminated in favor of the former, and secured to it the 95 miles of
road involved in the dispute The year also closes with the completion
of the Iowa and Minnesota Division extending from McGregor, Io., to St.
Paul Minn., 215 miles, the section between Cresco and Owatonna, 85
miles, having been opened about November 1,1867. The Iowa and Min
nesota Division is owned by the St. Paul Company, and was built at a
cost of $9,015,000, being about $41,930 per mile. The company are
not engaged on any additional lines, except in extending the existing line
in Wisconsin from Omro to Winneconne, a distance of five miles, the cost
of which will not exceed $70,000, valuable donations in land, &c., from
those towns having been made. Winneconne is on the W olf River, which
is navigable for steamboats 150 miles into the heart o f a vast and valu
able lumber region. The lines of railroad owned by the two companies
1868]
M IL W A U K E E
AND
ST. P A U L
AND P R A IR IE
DU C H IE N
27
RR ,
are reported at an aggregate length o f 820 miles, and are described as
follows:
1st. 3ft!wavkee and ‘■'f. Paul Bailway.
Milw ukee, via W <tertown, to La C rosse..........................................
Milwaukee, via Hor con, to Portage ...................................................
W atertown to Sun Prai ie .....................................................................
H oricon to Berlin and O m ro................................................................
196*1
qs I
ij! )•310 miles.
53 J
2d. Milwaukee and P ra irie d » Chien Railway.
Milwaukee to Prairie du C hien..............................................................
Milton to M onroe ....................................................................................
^
J-235 miles.
3d, Iowa and Minnesota Division (formerly known as the McGregor
W estern and the Minnesota Central Eaiiways.)
McGregor (opp. 1 r. du Chien) to St. Paul, M inn.............................
215 miles
Aggrega e length o f all lines owned by com p a n ies....................
820 miles
The rolling stock in use on these several lines is enumerated in the fol
lowing table:
M. & St. Io. & Minn. M. & P. Total o f
Paul Rail’y. D ivision, du C. R. all lines.
64
125
14
47
25
60
8
27
4
1
3
2
8
3
0
3
23
8
17
46
1,858
162
84
152
398
L o co m o tiv e s .................................. .
Passenger tars—1st cla ss.................... ...
“
2d c l - s s . . . ....................
“
Sleeping....................... .
Baggage, mail and exp ress.....................
B ox and f ei^ht c a r ? .................................
Platform cars
..................................... .
The following is a sutnmarv of the operations on the several lines for
the year ending December 31, 1867 :
Miles run by trains—
lassenger trains ......................_• .
Freight t ai s
..................
W ood and gravel trains........................
...
M & St. P.
(370 m.)
I. & M. Div.
(215 m.)
M. & P. dn C.
(235 m.)
Total.
(820 m .)
692,522
112,846
75,029
154,142
39.537
296,724
483,180
73,085
740,834
1,329,844
225,468
Total m les m n .......................
268,708
852,9S9
2,296,146
T ons o f r ight carried'—
T ons ea^twar .............................. . . .
297,344
230.609
90,248
618,201
329 833
Tons w estw a rd.............. .......................
58,643
128,206
T o s both w a y s .... ............................... . . .
148,891
358,815
948,034
440,328
Tons carried one mile—
Tons eastward.................... ................... . 3\ 513,323
67,637,205
4,626.276
31,467,606
T ons > es w a rd............... ................. .. 13,955,617
11,673,482
28,540,844
2,911,745
T ons both w ays......................................
7,538,021
43,1.1,088
96,178,019
Tonnage revenue—
Revenue eastward
.............................
$249,202 49 $1,055,224 03 $82,404,787 53
Revenue w estw a rd ...............................
t 94 It 8 08 188,377 56
4 J9.347 16 1,331,892 80
Revenue both w> y s ............................... ... 1,794,529 09 437,5s0 05 1,504,571 10 3,736,680 33
Tonnage revenue per mile—
Per mile e a s t ' ai d ...................................
4.07c.
3 49c.
5.38c.
3.35c
Per m ile westw rd’ .................................
4.97c.
6 46c.
3.85c.
5.09c.
Per m ile bo h w ays.................................
3.94c.
4.41c.
5.80c.
3.49c.
P a ssen g es carried—
159.493
Passengers ea stw a rd .............................
326,414
120,373
46,548
Passengers westw <rd........................... .
50,389
368,8 6
187,902
130,545
Passenger-* both w a y s ...........................
347,395
96,937
250,918
695,250
Passengers rarri d one m ile—
Passenger* ea stw a rd ............................. . 8,982.466
4989,391
15,788,077
1,816,280
Passengt rs w estw a rd ............................ . 12,2*1.946
5,332.217
19,494,144
1,939,981
Pat-senge's both w ays............................ . 21,204,352
10,321,608
3,756,261
35,282,221
Passenger r venue—
Revenue eastw ard..................................., $371,646 04
$90.51103
$177,313 03
$639,473 10
Revenue u <s tw a r d ................................. , 416,19011
95,988 48
197,015 40
769.194 02
Revenue both w a y s ................................. , 847,83618
186,502 51
374,328 43
1,408,667 12
Passenger revenue per m ile—
Per mile e •stw t r d .................... .........
4 14c.
4.98c.
3.55c.
4.22c.
Per mi e we?twa d ........................... ..
3 90c.
4 95c.
3.69c.
4.18c.
Per mile both w a j S . , , . . . , ...............
4.00c.
4.97c.
4.20c.
3.63c.
28
M IL W A U K E E A N D
ST. P A U L
AND
P R A IR IE
\Juhj,
D U C H IE N R R .
The gross earnings of the several lines, including mails rents, express,
&c., were as shown in the following account:
Passengers.........
F re ig h t..............
M ilita ry.............
Mails and rents.
M iscellaneous..,
Express service
Telegraph......... .
Sleeping cars ..
E levators...........
Total.
M . & St. Paul. I & M .D i v . M. & P . duC.
(370 miles ) '215 miles ) (235 mil s.) (820 miles.)
$1,41S,563
86
$847,836 18 $193,727 43 $377,005 V5
3,791,114 31
1,794,529 09
491,990 87 1,504,591 35
2,841
36
2,796 88
44 48
41,117 11)
27,347 51'
6,365 24 I
1,66-5 66
374,224 57
59,653
79
158,844 09 f
74,786 55
2,026 55
2,417 07 J
18,059 55
13,701 35
4,358 20'
78,799 94
78,799 94
T otal................................................... $2,946,906 95
Operating expenses, including taxes
and all other charges........................
1,722,217 21
$745,372 09 $1,991,829 55
N et earnings applicable to bond inter
est and dividends........................... ... $1,224,189 74
$5,6S3,6J8 59
562,386 98
1,331,081 63
3,665,685 82
$182,9S5 11
$610,747 92
$2,017,922 77
These figures for 1867 compare with those o f 1866 as shown in
the following statement:
G/033 earnings incre ised .............................. '$407,606 99
Gross »aruings d creased............................
.............
Net earnings increased................................... 290,086 27
$202,631 23
.............
35,703 09
$ .............
21,919 57
239,570 50
$5S8,333 67
.............
565,359 86
The following compares the gross earnings of the several lines for the
last four years:
1864
1865.
186G,
1867.
M. & St. P.
$1,402,105 86
2,535,001 43
2 538,799 96
2,946,406 95
I & M. Div. M. & P du C.
$1,711,280 88
1,985,511 71
2,013,749 12
542,721 80
1,991,8-9 55
745,372 09
$........
Total.
$3,113,386 74
4,520,513 14
5,095,210 92
5,683,608 59
From the above tables we make the following summary o comparative
results for 1867, reducing the primary figures to relative proportions:
M. & St. P. M. & St. P.
Milw. &
(old lines.) (I .& M .D iv .) P. du Ch.
235
215
Mile* o f road op e ra te d ...
............... .............
37U
3,629
3,160
1,250
T-ain miles to m ile o fr o a d .................. .............
183.579
35,061
Tons o f freight per m ile.......................
43,9 li
57,309
17,638
Passengers per m il e ........ .................. .............
$8,443 18
$3,466 85
Gross earnings per mile . ................... ............ $7,963 24
5,S54 28
4,654 64
Expenses pe mile . . . . .................. .............
2,605 76
2,588 90
Net earnings per m i l e ......................... _______
3,308,62
851 09
75
69
E xpenses, incl. taxes,& c.,p. c .............. .............
57
3.49 c.
Receipts per ton per mile .................. .............
3.76 c.
5.60 c.
Receipts per pass, per m ile ................ .............
4.00 c.
4.97 c .
3.63 c .
T otal o f
all Hues.
820
2,849
117,510
44,246
$6,931 23
4,470 35
2,460 S3
MX
4.35 c.
4.20 c.
The gross earnings on all these lines for the year ending December
31, 1867, amounted t o ............................................................................................................ $5,683,608 59
And the operating expenses t o ................................................... ..................................... 3,665,685 82
Leaving the net earnings a t.................................................................................................. $2,017,922 77
This residue is charged with interest on the mortgage indebtedness
and the Prairie du Chien preferred stock §1,144,932,00, and hence the
balance applicable to the St. Paul stocks is §872,990 77. No dividends,
however, were paid on either the preferred or common stock of the latter
during the year, all the net earnings having been required to pay for new
buildings and additional equipment for the roads. The directors announce
that hereafter they will be able to pay a cash dividend, commencing the
TH E
1868]
C H IN A T R A D E .
29
current year on the preferred stock The floating debt is of such limited
dimensions as to be manageable without fear of embarrassment. The
general accounts of the companies are given seperately and are as follows :
MILW AUKEE AND ST. PAUL COMPANY.
(Including the Iow a and Minnesota Division.)
Purchase o f road..........................$19,501,023 41
Construction o f road..................
3,920,145 28
Materials on hand......................
P ailw ay shares ow n ed ...............
P ost office dep’ t ...........................
Due from agents & other compa
n ie s ..............................................
Miscellaneous accounts.........
Sinking fund, 2d mortgage
b o n d s...........................................
$23,421,168
331,434
4,014,231
19 236
69
28
44
27
155,835 68
14,802 24
Stock—p referred .........................
“
co m m o n ...........................
$8,050,892 00
5,406,883 00
$13,457,775 CO
Eonds—1st m ortage...............
$5,361,000 (0
11
2d mort. & in c ................
1,500,000 00
“
Real estate.................
148 500 00
“
1st mortgage (I. & M.
Div.) ............................
2,000,000 00
3,492,042 06
“
A ssum ed...........................
24,COO 00
Pay rolls and b ills........................
Bills payable..................................
State Treasurer, W is ..................
Interest paid on bonds since
Jan. 1, 1S68.................................
155 564 50 Due other roads...........................
Cash on ha d .................................
170,898 76 Miscellaneous a cco u n ts .............
Mil. & P. du Ch. R R. C o .............
T ota l.................................... $28,307,171 86
Incom e accou nt...........................
$4,559,539 91
$12,501,542
179,290
259,646
86,267
81,936
38.617
732,940
1*69,156
06
06
52
21
32
84
03
82
T otal....................................$28,307,171 86
MILWAUKEE AND P R A IR IE DU CHIEN COMPANY.
General property........................... $7,698,281 00 F rst mortg. b onds........................
168,861 51 Stock—1st preferred....................
Materials and fuel ......................
Advances to I. & M. D iv .............
732,940 03
‘‘
2d
"
....................
Post office dep’ t .............................
10,851 07
co m m o n ...........................
M oney lent in New Y o r k ...........
295,072 92 Bonds & st cks cancelled by
McGregor Western R R . bonds
Sinking F und.............................
$17,000 ........................................
15,733 33 Reserved and unpaid Sinking
Due from agents & other compa
Funds............................................
95,574 54 Other accounts & balances. . . .
nies .............................................
Survey o f Monroe & Dubuque
Convertible property and old
E xtension....................................
4,882 78
d eb ts.................................
Cash on hand.................................
128,371 35 Incom e account.............................
T o t a l ...................................
$9,150,568 56
$390,500
3, 14.250
1,014.000
2,986,081
00
00
00
00
514,200 00
178,580 00
213 051 75
141,206 59
498,039 22
T otal........... ....................... $9,150,568 5G
THE CHINA TRADE.
NUMBER
II.
In considering the probable influence o f the completion of communica
tion by one or more lines of railway across the continent, especially upon
the future of the Pacific States, it is necessary first to examine the
existing routes.
The great bulk of the trade between Europe and America on the one
band, and all India and Asia on the other, is now, as it has been since the
fifteenth century, carried on by sailing ships around the Cape of Good
Hope. Its value is hardly to be measured by any figures o f which the
mind can take definite impress; nor would it be easy to collect the stat
istics of its many parts into an exhaustive and accurate view. In the year
1861, which we take for illustration, as showing the highest development
TH E
so
C H IN A
[July,
TRADE.
of the American trade before the depression caused by the war, and of that
of Great Britain before it took on the rank growth consequent upon the
same event— the tonnage of vessels departing for all China, and arriving
thence from and at. ports o f the United States, Great Britain and France,
and the declared values of goods carried by such vessels were as follows:
Great Britain..........................................................................................
U n'ted States.........................................................................................
F rance.................. ...................................................................................
T otal............................................................................................
Tons entered
& cleared.
201 590
124,075
15,957
3 i 1,522
Values o f im poi ts & ex[»’ s.
$65,000,000
18.269, 146
5, 00,000
$88,269,146
These figures, of course, include the values of treasure and merchandise
carried during the same year by steamers via the Isthmus of Suez.
Taking New York as a central point, the distances by the usual sailing
routes round the Cape are: to Calcutta 9,350 miles, to Hong Kong
14,000 miles, to Shanghae 14,500 miles. The ships engaged in the trade
are for the most part of the best class fully fitted out, well manned and
ably commanded.
Their valuable cargoes and extra prizes for best pas
sages, as with the first teas of the new crop, have led to the construction,
here and in Great Britain, of the famous “ tea clippers,” unequalled for
their performances. In 1806 eleven of these ships sailed from Foochow
between the 29th of May and the 7th of June, and arrived in London or
Liverpool between the 6th of September and 5th o f October. Wonderful
to think of, three of these, the “ Taeping,” “ Ariel” and “ Serica” sailed
together on the 30th of May, and all arrived within a few hours of each
other, on the 6 th of September, the “ Taeping” having won the “ heat”
of 14,000 miles in ninety-nine days, five hours, simply by being towed
into dock before her competitors! Last year the race was won by the
“ Ariel,” arriving on the 23d o f September in 101 days, 22 hours, 30
minutes, and beating her successful rival of the previous year bv four and
a half hours! the ordinary voyages, however, range between four and
five months.
The immense importance of the Eastern trade in past centuries, at once
the coveted prize and gage of battle of all the great nations that have in
turn claimed and exercised the maritime supremacy of the world, and
have drawn from the profits of this commerce the sources of their n a erial
power, has in the present age turned the attention of many thinkers
among the statesmen and merchants of Europe and America to nu nberless projects for diminishing the length of the voyages and the time
consumed in them. Prominent among these have been the schemes for
inter-oceanic ship canals across the Isthmus of Suez, uniting the waters
of the Bed Sea and the Mediterranean, and across the Isthmus of Daiien
or Panama, connecting the Atlantic and Pacific Oceans. The one pro
1868]
TH E
C H IN A
TRADE.
31
mises for the Eastern Hemisphere the same relative benefits that the
other extends to the Western. The former, under the powerful stimulus
of the Napoleonic policy and the French treasury, has gradually grown
from the germ of an abstract idea into the fruit, now approaching ripeness,
of accomplishment. M. Lesseps, the engineer of the work, promises that
it shall be finally completed in October next. Already the canal is used
for the transportation of cargoes by small vessels or lighters of incon.siderable draft; a considerable quantity of coal for the Abyssinian expedi
tion having crossed the Isthmus in this way. Mr. Kelley estimated the
value of the tonnage and trade of Great Britain, the United States and
France that would to-day pass through a ship canal across the Isthmus of
Panama at $450,000,000 per annum, and the yearly saving in freight,
insurance and the like at no less than about $50,000,000 ; but the canal
has not been built, nor, in spite o f an occasional spasmodic agitation o f
the question, even begun. The Isthmus of Suez is now spanned by a rail
way, 252 miles long, constructed under the patronage o f the Viceroy of
Egypt; the Isthmus o f Panama by the line, 47 miles in length, of the
Panama Railway Company. These railroads and their maritime connec
tions give us three great steam lines between Europe and America on the
one hand and China and Japan on the other.
The first is that of the “ Peninsular and Oriental Steam Navigation
Company,” of London, incorporated in 1840, which now performs a fort
nightly service between Southampton and Marseilles and Yokohama, via
Malta, Alexandria, Suez, Aden, Galle, Penang, Singapore, Hong Kong
and Shanghae, with a weekly line to Bombay and Calcutta, and a monthly
connection at Galle with Australia. The distance between Southampton
and Yokohama, 11,586 miles, is performed in five connecting steamers,
the time occupied in the transit of mails and passengers between Lon
don and Hong Kong being about forty three days, and the entire service
is characterized by great regularity. This company, under a recent con
tract, is to receive from the British Government a subsidy o f from
£400,000 to £500,000 a year for twelve years.
Next comes the China lines of the “ Compagnie des Messagiers Imperiales,” at present monthly, but promising soon to be semi-monthly.
This company receives an enormous subvention from its Government,
rather difficult to calculate with accuracy, inasmuch as its ships were
built by loans from the imperial treasury and it has absorbed the entire
steam marine of France, except the General Transatlantic Company’s lines
to New York, Panama and Mexico. Its service is parallel with that of the
Peninsular and Orieutal Company, and its steamers, having been more
recently constructed and from ampler means, are larger and more powerful,
and consequently perform the service with somewhat greater speed.
32
TH E
C H IN A
TRADE.
[July,
The third line is that o f the Pacific Mail Steamship Company between
New York and Hong Kong, via Panama and San Francisco, making
four trips a month between this port and California, and one a month
thence to China, by way of Japan, with a branch to Shanghae. The
extreme length o f its route is 11,900 miles, the oistance to Yokohama
being 10,300, and the time occupied in the voyage is at present about
54 days to Hong Kong, 50 to Shanghae and 44 to Yokohama. The
missing link between this port and Europe is filled by an endless chain
o f steamers owned by European companies.
The Pacific Company
receives $500,000 a year from the Government in the form of a postal
subsidy for the China mail service, which is proportionately Jess than
that enjoyed by the British and French lines.
Thus it will be seen that the distance and time by existing routes to
China is about as follows :
FROM NEW YORK.
T o Yokoham a.,
s^hanghae ..
H ong K ong
/—Sail, via Cape o f
Good Hope.—,
Miles.
Days.
21,000
120-180
20,000
110-150
19,500
100-140
/—Steam, v il
buez.Miles.
HftM
05
14,810
13,800
00
18,000
55
/—Steam, via
Panama —,
Miles,
liays
30,300
44
31,400
50
11,900
54
9,800
10,000
Via New Y ork
and Panama.
14,900
06
14,400
62
13,300
50
FROM ENGLAND.
T o Ilon g Kong,
Shanghae. .
Yokoham a .
100-140
110-150
120-130
ll,(iu 0
43
48
53
By the overland mail the time is already six days less than by steamer
via Panama, so that even now the Japan mails are delivered most speedily
to Great Britain by the American route.
To compare these distances, which are given in nautical miles, to
those of the land route stated in statute miles, we add one sixth to the
former. Thus the distance between New York and Hong Kong via the
Cape of Good Hope, 14,000 nautical miles, is equal to about 16,300
statute miles. The distance by railway from New York via Chicago to
San Francisco, is 3,250 statute miles, thence to Hong Kong bv steamer,
6,700 nautical, or 7,800 statute miles, making the entire distance between
New York and Hong Kong via the Pacific Railroad and China Mail
Steamship route, 11,050 statute miles, as against 16,300 by sail. Again,
the distance from London to Hong Kong, 13,300 nautical, is equal to
15,600 statute miles, while the entire distance between the same points by
the American route is 14,000 statute miles. But in reaching these great
distances the world has again almost unconsciously returned to the primi
tive ways of measuring them by time instead of length, by days instead
o f miles. This is the ultimate test to which all commercial routes must
be subjected. The duration of the voyage by the existing routes has just
TH E
1868]
33
C H IN A T R A D E .
been given. In company with it, the time that will probably be occupied
in the voyage by the Pacific Railway route, we take the present average
performance of the mail and commercial steamship lines across the Atlan
tic as a standard for the entire sea route, and extend to the Pacific
termiuus the the present rate of speed by railway hence to Chicago,
which is about twenty-five miles an hour on the express passenger
trains. This would give 130 hours for the eutire journey overland,
although it is little likely that for some years after the first completion
of the road, in about 1870, the trip will be made in less time than 160
hours, or six days and a quarter. Allowing ten days for the trans-Atlantic,
and seventeen for the trans-Pacific voyage, with one day each for the
connection at San Francisco and New York, and the entire journey
would be made in the following tim e:
N ew Y ork to Yokoham a......................
“
«
“
24 days I London to Yokoham a...........................
bhaoghae......................
29 “
Hong K o n g ....................
3J
“
|
“
“
“
‘ * H ong K o n g ..........................
3") days
f'hansrhae........................... 40 “
41 •*
This is no fancy, but a practical reality, the proof o f which only avaits
the development a few years hence o f the favorable commercial conditions.
Those who lament over the present “ slow time” made by the China Mail
steamers of the American line need not be discouraged, for their so-called
“ slowness” is the salvation o f the enterprise.
They make all the speed
that their trade now requires or justifies, all that was made under like
circumstances on the Atlantic, and whenever a trade springs up which
demands on the Pacific the same speed now made on the Atlantic it is
demonstrable that the demand will bo met.
There can be no question then, that the bulk of all the mails, passen
gers and valuable merchandise passing between New York and Europe
and Japan and China will cross the Pacific Railway. The course of
exchange must inevitably follow the mails. But all except the more
valuable cargoes must long continue to take the ocean routes, whetln r
by sail or steam, for two reasons: 1st. They cannot pay any rate of
freight at which the Pacific Railroad can take them, in view of the
increased cost of transportation by railway as compared with that by
steamship or sail, and especially c f the heavy cost of the former west
of the Mississippi; the probable railroad charge for a ton of ordinary
merchandise between this port and San Francisco has been estimated at
$117, gold, while the entire charge for a ton o f tea by steam from
Shanghae to New York is only $35, and by sailing ship $15 to $20.
2d. The Pacific Railway cannot for some years be expected to furnish the
facilities required for the movement of large bodies of freight, as will be
seen by a simple calculation. Supposing the road to attempt to transport
the 230,000 tons now carried between New York and San Francisco,
3
34
TH E
[July,
C H IN A T R A D E .
at an average speed of 15 miles an hour; this would be about '700 tons
a day, or 100 car loads, each train would reach its destination in 13 days,
and, with only 2 days given for unloading and reloading at either terminus,
would be at the starting point ready for a second tripin thirty days;
thus not less than 3,000 cars would be needed for this trade alone, in
addition to the vast number required for other through and local express,
passenger and freight traffic.
From the foregoing statement it will be seen that the time occupied
by mails, passengers and express ft eight in the journey between London
or New York and Japan or China by way of San Francisco will compare
with the existing routes, after the completion o f the Pacific railway, and
as soon as its full efficiency is reached, as follows:
From N ew Y ork to—
,---------T im e , at present, by----------,
Steamers
Pacific
steam ers
Hailwsy. via Panama. via 8nez.
days.
days.
days.
44
65
50
60
54
55
Y ok oh a m a .............................................
S hangh ai...............................................
Hr ng K on g............. ..............................
From London to—
Y o k o h a m a ..............................................
Shanghai................................................
H ong K on g............................................. .....................................
41
50
62
66
53
48
43
This difference in time will inevitably turn the current o f travel, trade
and exchange into the American channel.
A t the same time— and
i specially if, as seems likely, the constitutional vices of the Chinese Cus
tom House, on which Hong IvoDg flourishes, be removed— the British
colony at that point will probably lose its rank as the chief port of the Far
East, and transfer the commercial crown to one or other of the northern
ports o f China or Japan; this change, however, will be but relative, if it
occur at all, for the new communications can hardly do otherwise than
largely increase the traffic o f which Hong Kong is now the centre.
Those who have watched the development of trade and travel conse
quent upon the opening of regular railway communication, even under
circumstances apparently the most adverse, will hardly be surprised at
any increase in volume or change in character which the Eastern trade
may take on, as a consequence o f the opening of the new highway across
this continent. That articles will be interchanged heretofore unknown to
this commerce, and by persons previously unfamiliar with its operations,
is but the simplest form of the new growth. Things now regarded as
curiosities or rare luxuries, much as sugar or tobacco in the times of Drake
or Raleigh, will come to be staples common as those articles to-day.
This is the history o f all commerce.
Again, New York will soon cease to pass through her Custom-House
the teas and spices consumed west of the Alleghanies. These must
naturally come by rail from San Francisco, and with them products now
unknown beyond the smell of salt water, or known only to be stared at.
1868]
TH E
C H IN A
TRADE.
35
W est of the Rocky Mountains an immense area, quite uncultivated,
but of fertility so fabulous that the mere statement of it excites a smile,
certainly of surprise, perhaps o f incredulity, and mines of precious metals
and all useful minerals, whose mere surfaces have as yet been but irritated,
invite all the staiving population o f the world to come and there find labor
and its rewards. To China, with her dense population, estimated at four
hundred million souls, and an inability to feed these numbers, so evident
that, in spite of all the industry and frugality o f her people, rebellions
which are in fact only gigantic bread riots are chronic, and infanticide
is common;— to China we naturally turn for the source whence this
population is hereafter to be supplied.
The demand and supply are
separated only by the Pacific Ocean. This movement o f population has
already begun. The Chinese Government, which, in its care o f its sub
jects, is notably the most paternal in the world, now recognises its interest
in promoting the general welfare by encouraging and facilitating the
emigration of its surplus numbers. In our own country, ignorance, always
the most expensive o f luxuries whether for individuals or nations, still
opposes, with a bitterness which can only come from prejudice so born,
the immigration of the Chinese on several pretexts, alleging that they
are immoral people, an idle race, irreligious, and the lik e:'a ll of which
they are not. Noted for the practical morality which governs their lives,
for their steady industry, for their rare frugality, these Chinese immigrants
form the best laboring class that has come to the shores of America dur
ing this century. Their influence upon us, and ours upon them, for good
or evil, must largely depend uoon the spirit in which they are received;
but however that may be, their coming, and in millions, is foredoomed
by the unalterable conditions of the case, and can only be turned aside by
staying the march of our material prosperity’.
Thus a mighty empire bids fair to arise on the Pacific slope peopled by
a new race or a new admixture of races. The commercial results must
be obvious.
San Francisco will naturally become the great entrepot and depot for
the greater and more valuable trade between the United States and China
and Japan, which we have assumed will be carried on by steamers across
the Pacific, and by rail or steamer between the Atlantic and Pacific States.
Valuable goods of all kinds and all small shipments, such as are sent by
express in this country', passing between Europe and the Far East, will be
gradually diverted to this route as its advantages become known.
The exchange of precious metals, which now flow from their sources to
London, as into a great reservoir, and thence to the various points of dis
tribution in India, Egypt, China and elsewhere-—will this be changed ?
When ?
36
TH E B R E A D ST U F FS
TRADE.
[July,
There is no natural reason why silver should be taken from the mines
of Mexico or Peru by way of Panama to England for the purpose of
being exported to China or India, now that a bridge has been thrown
across the short gap that formerly seperated producer from consumer.
Shipped to San Francisco, it is in a few days within the control, by
telegraph, of its actual or ultimate owner, the London banker. A ll
exchange is finally a question of cost of transportation. W h y should
he pay a high freight to get it to a cheap market, when for a low freight
he can in less time place it in a dear market ? The conclusion is-irresisti
ble that all exchanges of the precious metals between Europe and America
and China, Japan and India will converge at San Francisco, which will
thus become the “ centre” of these exchanges at least, if not indeed o f
those “ of the world,” as her more ardent citizens are wont to predict.
“ The centre of exchange o f the world ” is and must ever be where the
commerce o f the world settles its balances; in other words, where those
balances can most conveniently be settled. Other elements than the most
important one of facilities for frequent, rapid and reliable communication
enter into this problem; chief o f these is the possession of the accumu
lated capital by which that commerce is carried on. To-day London
holds this golden master key, as Byzantium, Carthage, Venice, Lisbon
once held it. Exchanges are settled in London for the same reason that a
merchant does business in his own counting house. Whether this con
dition will be changed by the bodily transfer of the capital itself, or by
the drying up of the sources o f its growth in one place and their break
ing forth afresh in another, it would be useless now to speculate. That
the trade of America with the Far Ease will grow vastly in value and im
portance; that it will be mainly controlled at N ew York ; that the race
between New York and London for the first place will be hotly contested ;
so much seems clear.
THE BREADSTl'FFS TRADE.
The recent general decline in the price of flour and grain is the result
of considerations relating to the prospective harvest. There appears to be
no dissent in any quarter to the conclusion that present prospects war
rant lower prices for breadsluffs ; there is, however, some difference of
opinion as to what extent o f decline may be reasonably expected. Pres
ent prices range 10@ 15 p<r cent lower on flour than at the beginning of
the year, and on wheat
per cent, while corn is about 25 per cent
lower. For the purpose o f illustrating the course of prices, from Jan. 1st
TH E
1868]
BREADSTUFFS
37
TRADE.
to the present time, we present the following comparative quotations o f
breadstuff's at New York at stated periods:
PRICES OF BREADSTUFFS AT NEW T O R E ,
Flour, Superfine......... per b b l.................
Extra State................................. ............
Shipping R . hoop Ohio........................ .
Double E x. W est.& S t.L ouis...............
Southern supers.....................................
California................................................ .
Wheat, Spring_____per bush.................
R ed W inter............................................. ...........
Am ber W inter........................................
W h ite.........................................................
Corn, W estern m ix ed ................................
Southern white ...............................................
R y e .................................................................
Oats, Western cargoes............................
Barley............................................................____ .
Jan. 7, 1868.
60® 9 40
10@10 85
25® 11 00
50® 16 00
75®11 60
50® 13 75
30® 2 50
2 65® 2 75
80® 2 85
8 0® 3 25
3S@ 1 44
1 35® 1 45
70® 1 80
87
1 8 0® 2 10
j
April 24, 36S.
$0 <0®10 00
10 35® 10 85
10 50® 10 90
11 75@!6 00
10 40® 11 15
12 75® 14 50
2 45® 2 63
& a 85
2 90® 3 00
3 00® 3 40
1 16® 1 19
1 14® 1 16
2 0 5® 2 35
85®
87
2 10® 2 35
Jnnel9,186S.
$7 25® 8 25
8 25@ 9 75
9 00® 9 85
9 75@14 50
9 35® 11 10
10 50®13 00
2 12® 2 2S
2 50® 2 55
2 60© 2 70
2 55® 2 80
1 0(1® 1 08
1 14® 1 16
1 90® 2 05
82^® 83X
2 20® 2 40
Considering that, at the beginning of the year, stocks at New York
were unusually light, owing to the premature closing of the canals, and also
the consequent locking up of a large quantity o f grain, which at that
time gave a factitious firmness to the market, the decline can hardly be
considered an unwarranted one. The receipts at this port since January
1st have been unusually large. How they compare with these for the
same period of last year appears from the following statement:
RECEIPTS OF BREADSTUFFS AT NEW YORK FROM JAN. 1 TO JUNE 1 9 .
F lo u r .......................................... ~ ~ ...................................... bb’ s.
C oro m eal................................................................................ “
W h ea t...................................................................................... bush.
Corn.................................................
R y e ...........................................................................................
Barley, &c,
O ats...........
“
1867.
644,135
136,720
693.145
2,803,115
36,220
273,960
780,350
1868.
956,970
178,255
3,729,005
“
7,425,8S5
208,450
693,650
2,107,195
Increase*
312,835
41,535
3,035,S60
4,622,770
172,230
419,690
1,326.845
The export movement has o f course taheu off a large amount o f this
liberal supply. The shipments from this port from Jan. 1 to June 19,
compare as follows with those o f the same period of 1867 :
EXPORTS OF BREADSTUFFS FROM NEW Y O R K , FROM JAN. 1 TO JUNE 1 0 T H .
Flour, b b ls .......
Corn meal, bbls
W h-ab, bush___
R ye, bush.........
Barley, b n -h __
Oats, bush ___
Corn, bush........
1867.
202,904
78,274
37,549
136,8S7
S60,21?
124,758
4,084,534
1868.
381,9i3
94.747
2,624,524
152,993
Inc..
179,049
Inc..
6,473
Inc.. 2,586,975
In c..
16,106
38.943
3,647,856
D ec.
D ec.
85,815
436,678
It will be seen from a comparison of the two tables, that the increase
in the exports is not at all equal to the gain in the receipts. W e have
received of flour 312,835 bbls. more than in 1867, and have shipped
only 179,049 more than then ; of wheat our receipts are 3,035,860 bushels
more, and our exports 2,586,975 more ; of corn we have received
TH E
38
BREADSTUFFS
[July,
TRADE.
4,622,'770 bushels more, and have shipped 436,618 less ; while our
receipts of oats are 1,386,845 bushels more, and our exports 85,815 less.
It is true that at the beginning of the year stocks were unusually low,
and that a large amount o f this supply has been required for making
up that deficiency ; but the fact nevertheless remains that, so far as
respects the movement at the principal grain port of the country, the
supply available for home consumption shows a very large g^in upon last
year. A similar increase of receipts is apparent at the lake ports, as will
appear from the following comparison :
RECEIPTS OF FLOOR AND G RAIN AT THE LAKE PORTS, FROM
JAN.
1ST TO JUNE 13, FOE
FOUR YEARS.
1S6S.
Flour, b b ls ............................
W heat, b u s h .................. ..
Corn, b u sh ...........................
Oats, h u s h ........................... .................................
Bariev, b u s h .................. ..
Rye, bush.............................
T otal grain, b u s h ........
4,109,264
1867.
1,227,020
1866.
1,438,668
1S65.
961,803
4,104,548
10,986,011
2,792.985
522,382
458,249
8,065,200
13,324,081
5,514,941
324,055
683,232
7,244 604
6,236,380
4,549,297
440,993
246,764
18,865,175
27,910,509
18,717,978
It is thus seen that the arrivals at the interior grain ports are about
6,000,000 bushels in excess o f those of either 1861? or 1865, and a little
over 3,000,000 bushels below those of 1866. The stocks at Chicago has
been reduced to a comparatively low point, especially those o f corn and
oats; and the arrivals at the lake ports now show a material falling off!
but, considering that we are close upon harvest, and that the stocks on the
seaboard are comparatively ample, this consideration can hardly be allowed
much weight as an argument in favor of a firm market. Taking into
view all the circumstances relating to the home visible supply and to
export, the late decline in prices can hardly be regarded as precipitate or
unfounded.
The prospect of the supply from the approaching harvest is unusually
flattering. In all parts of the United States the weather has been highly
favorable to the growing crops. In some sections there has been too
much rain for the corn, and farmers have had to resort to a second plant
in g ; hut, even as respects this crop, there is no apparent reason for doubt
ing that the yield will be fully up to the average. The Western Slates
have doubtless planted fully up to their capacity; and nature has second
ed their efforts with more than ordinary beneficence. The Southern
States, discouraged by the poor results of the last cotton crop, have some
what increased their production o f cereals, to the growth of which an
unusually moist condition o f the atmosphere has been peculiarly favor
able, so that there will probably be a moderate surplus in that section
available for export or for consumption in other districts. The reports
1808]
TH E B R E A D S T U F F S
TRADE.
39
from California are equally encouraging. The late high prices realized
on grain, and the favor with which California wheat is received in the
Liverpool market, have encouraged a large extension o f wheat growing
in that State. The weather also, as elsewhere, has proved propitious, and,
according to the latest reports, the crop is likely to exceed that of last
year by one third. In connection with the home supply o f breadstuff-;
however, it is important to keep in mind that there is considerable danger)
that the potato crop will prove a failure on the Eastern seaboard, a fact
which must be allowed due weight in estimating the future value o f grain.
The crop accounts from Europe also encourage the expectation of an
unusually abundant wheat crop. W ith no one exception of moment
the weather has been highly favorable to the growth and healthy condi
tion of the crops. In England, the period for ploughing and sowing,
both in the Fall and the Spring, is admitted to have been unprecedented,
while the mild Winter was favorable to a healthy and vigorous growth
of the plant, so that it would require unusually bad weather to spoil
the present prospects o f an abundant yield. The “ blooming” season
comes in at about this time, and much must depend on the character
of the weather at that period, which, at the latest advices, was very
favorable. In France, the harvest is already in progress in the Southern
districts, with every prospect of at least an average yield. In Algeria, the
crop has been already harvested and proves remarkably good, so that,
instead of importing, as last year, that country will probably have a sur
plus to send to the French market. In Egypt, the grain crops no longer
suffer from the diversion of agriculture to cotton growing, and this year’s
wheat crop is unusually abundant. The reports from the Danube districts
are as yet somewhat meagre, and the same may be said of Prussia; but,
so far as they go, they are entirely satisfactory, and indicate the probability
o f a yield fully equal to, if not in excess of that of last year.
A s a general result, then, it may be said that the world’s crops, in
their growing condition, promise a larger yield than last year. There
yet remains the harvest, however, with all its contingencies and adverse
possibilities. The dangers o f blight and excessive rains have yet to be
encountered, and, until these liabilities have been passed, no safe calcula
tions can be made as to the result. Even assuming, however, that the
harvest should prove as favorable as the growing season, it would be
rash to jump to the conclusion that we must therefore return to old
prices for breadstuff's. Stocks have been depleted by three years of
deficient crops, and it may be safely assumed that stocks are now every
where below the old average. There are indications that in this respect
there has been considerable recovery effected within the past few months
so far as the receiving ports are concerned. A t the leading Western
40
TH E
N A T IO N A L
BOARD
OF
TRADE.
cities, stocks are generally larger than at the same period of last year,
and in the New York ware houses we hold about one million bushels
more than a year ago. The imports of wheat into the United Kingdom,
from January 1st to May 30tb, are 8,000,000 cwts. more than for the
same months o f -1867; the arrivals at Belgium are 25 per cent, larger,
and at the ports of Western Europe generally the receipts are much
above those of last year. These facts would indicate that some gain
has been made in stocks at the receiving ports from the generally
abundant harvest of last year; but the amount in farmers’ hands the
world over was never lower, with the one exception o f last year, so that
it will require an ample surplus from the harvest o f 1868 to bring up the
world’s stocks to near their former condition. This being the case, it
would seem probable that the trade will wait to ascertain, first the effect
of this years crop upon stocks, and next as to whether the crops of 1869
are likely to sustain the recovered position, before assenting to the
return of old prices for breadstutls.
THE NATIONAL BOARD OF TRADE.
One of the marked characteristics of the present day is the recognition
and employment as never before of the uses o f organization and association
in efforts for the advancement o f morals, of the sciences, and o f com
merce.
Under various conditions, merchants have long been accustomed to
maintain more or less closely defined personal relations with each other.
V ery early in the history of commerce they saw the advantage, if not the
necessity, of meeting together at stated times for the interchange o f intel
ligence, for the consummation of bargains, and for the regulation of matters
in which they had a common concern.
Five hundred years before the
Christian era Rom e had its Collegium Mercatorum, or Exchange; and in
every emporium of trade from that day to the present there has been some
central place in which merchants have been wont to congregate. During
the middle ages companies were formed for carrying on foreign traffic, and
for the promotion o f particular branches o f industry at home.
Their
members were united by identity of interest, but they were few in number,
and circumscribed in purpose. Both the exchange and the trading com
pany still exist, although under somewhat modified forms. Comparing
the two, we might say that the one shows us an aggregation of units, the
other a compacted society ; in the one, each man is left free to pursue his
own plans in his own way, in the other a selected few are united in joint
efforts in behalf of a special object; in the one, no attempt is made to limit
1868]
TH E
N A T IO N A L
BOARD
OF
TRADE.
41
or check the intensity of individual action, in the other, the energies and
the resources of individuals are concentrated, and thus rendered the more
effective in competition with those not embraced in the membership.
Between them is the Chamber of Commerce, or popular Board of Trade,
an institution which, while it discourages isolation and exclusiveness,
makes no interference with personality; while it brings individuals together,
associates them for the general benefit; while it fosters enterprise, presents
no restrictions as to either its method or its scope.
The value of the
Exchange cannot be called in question; and trading corporations were
especially useful, when capital was scarce, and the broad field of commer
cial endeavor lay almost entirely uncultivated and untried ; but it must be
admitted that a local organization seeking to develop the social principle,
comprising the representatives ot varied branches o f industry, furnish
ing opportunity for those engaged in one pursuit, to become acquainted
with the facts relating to every other, and inspiring all its members with
the impulses o f a common purpose for the attainment of a common good,
possesses advantages and gives promise ot an influence, such as are not to
be found in the others, which, for the sake of illustration, we have placed
in juxtaposition with it.
Chambers of Commerce were first established early in the eighteenth
century in some o f the leading cities of France, and soon appeared in other
European countries. The New Y ork Chamber is the oldest in the United
States, having been organized in 1768.
Its objects and advantages are
well stated in the preamble to its register of proceedings : “ Whereas, mer
cantile societies have been found very useful in trading cities for promot
ing and encouraging commerce, supporting industry, adjusting disputes
relative to trade and navigation, and procuring such laws and regulations
as may be found necessary for the benefit o f trade in general, & c.” W ith
the growth of the country it has been seen to be desirable to establish
many similar institutions; and, under the various names of Board of Trade,
Chamber of Commerce, Commercial Association, or Produce Exchange,
they have a recognized position in all the chief centres of trade. Differing
from each other in particulars o f administration, as well as in name, they
are substantially alike in their purposes and aims, and they could all
adopt the language of the merchants of New Y ork of a century ago, in
defining what these are intended to be.
But commerce is not local, either in its activities or in its relations ; and
these organizations, designed to promote the advantage of the different
communities in which they exist, have come to understand that they can
render essential service to each other both by word and by act, and that,
especially in reference to questions of national importance, idiey can co
operate together, with promise of immense benefit to all concerned. These
42
TH E N A T IO N A L
BOARD
OP TRADE.
I'July,
boards and chambers began their intercourse by correspondence, and by
the interchange of resolutions and recommendations.
It was then pro
posed to bring them together in convention, and in 1865 a meeting was
held at Detroit, attended by delegates from twenty-eight mercantile asso
ciations of the United States, and fifteen of British North America. This
was the first occasion when these bodies, in their distinctive capacity, were
represented in convention, and the experiment was quite successful. In
February o f the present year a second general meeting, limited to the
boards of trade in the United States, was held in Boston, and it was
then determined to bring these commercial organizabionins to a permanent
connection with each other, by means o f a board in which they should be
the constituent members, which should hold regular meetings, and which,
through its executive officers, should give constant and careful attention
to the general industrial interests of the country.
This, in brief, will
explain the origin of the National Board o f Trade, which was formed by
delegates duly appointed for the purpose (representing thirty-two com
mercial bodies, and twenty States o f the Union), on the 5th of June, 1868,
in the City of Philadelphia.
W e propose to explain the objects, the organization, and the plans of
this National Board.
I.
The declaration, which precedes the constitution of the board, makes
its objects to be three-fold; to promote the efficiency and extend the use
fulness of the local boards of trade and chambers of commerce ; to secure
harmony and unity o f action in reference to commercial usages, customs,
and laws, and to secure the proper consideration of questions pertaining
to the financial, commercial, and industrial interests of the country. It is
not intended that the National Board shall undertake to perform any of
the functions properly pertaining to the local boards, or that it shall in
any degree obviate the necessity for their existence or efficiency ; on the
contrary, it is designed to quicken the activity of each of these, by furnish
ing a broad channel through which its energy and influence can be directed,
and by seconding and sustaining whatever efforts it may be making for
the public good. It will give assurance to each that, however remote it
may be from the older and more densely settled portions of the country,
and however limited in its local influence, it does not stand alone, and it
is not working by itself. It will place the various boards in intimate and
fraternal relations with each other, and will be a medium o f communica
tion between them. W ith whatever is strictly local, or sectional, or spec
ial, it will have nothing whatever to do. A ll that the boards can or should
themselves undertake it will not interfere with, but all such matters as do
not exclusively pertain to any one of them, and such as require the assist
ance of more than one in their adjustment, will legitimately fall within its
1868]
TH E
N A T IO N A L
BOARD
OF T R A D E .
43
sphere. It will not only enable the boards to compare views, but it will
promote accordance in these views, and will give emphasis to their expres
sion. Hence the facility with which it may be expected to secure unity
in commercial customs and laws throughout the country.
Its member
ship will embrace every section, and its discussions will take every pecu
liarity of usage or statute into the account; its deliberate recommenda
tions, therefore, will carry a q u a s i authority with them to a very considererable and influential number o f our business men, and a weight such as
sound judgment and ripe experience always command to all. So also, in
reference to the financial, commercial and industrial interests of the United
States, in their broadest relations ; its plan o f organization will qualify it
to indicate some of the methods by which these interests may be devel
oped in harmony with each other, and consistently with the rights and
the necessities of every State and of every community.
II.
This leads us to notice one or two of the more important features
in the constitution of the National Board of Trade. And, first, its mem
bers are not individuals, but associations; and its proceedings, therefore,
will be carried on by delegates, who will act not on their own responsi
bility simply, but with accountability to those by whom they are ap
pointed. Each association having fifty voting members, will be entitled
to one delegate; having one hundred members, two delegates; having
three hundred members, three delegates ; having four hundred members,
four delegates; and for each additional five hundred members one ad
ditional delegate. These delegates will not be justified in seeking to
enforce their own opinions, excepting as these shall have been approved
by the bodies to which they belong; and they will be precluded from
advocating measures in which they may have a personal interest, excepting
as these shall have received a similar sanction. In this way the N a
tional Board is to be protected against abuse from those who would em
ploy it to subserve private ends. Then, secondly, pains have been taken
to ffuard against efforts to make it the agent for advancing special inter
ests. Such bodies only are eligible to membership in it, as are duly
chartered under State or national laws, and are organized for “ general
commercial, and not for special or private purposes.”
Associations have
recently been formed in the interest of the shipbuilders, the shipowners
the cotton manufacturers, the wool growers, the wool manufacturers, and’
other classes of business men, and there is a work for each of these to per
form, valuable to the class which it represents and useful to the country.
But to give these special interests representation in a board formed to
consider and advance the industry of the nation in its completeness and
totality, would not only introduce discord and confusion, but would defeat
the purposes^ for which the board was organized. The delegate, for
44
TU E
N A T IO N A L
BOARD
OF TRADE.
[ J u ly ,
example, from the shipbuilders, would consider every question in its bear
ings upon shipbuilding; the delegate from the woolen manufacturers
would weigh every consideration against the supposed requirements of
fabrics in wool, and so on ; each would be expected to do th is; it would
be made his duty to do this. But these interests, with others, are already
strongly represented in the various local boards; the shipbuilders, at
Portland; the manufacturers of cotton and woolen goods, at Boston and
Providence; the shipowners and importers, at New Y ork ; the iron and
coal masters, at Philadelphia; and the produce trade, in all its branches,
at each of the large cities west and east. These interests are fully and
adequately represented therefore in the National Board ; but they are
represented in their relations to the whole country, and to every branch
of industry in it, and not in their more restricted and special aspects.
Even in the local boards, the individual members are called upon, if not
to forget their particular avocations, at least to remember those of their
associates, and to subordinate private and personal considerations to the
harmoniously adjusted claims o f the whole community.
How much
more absolutely indispsnsable is it, that such a spirit should prevail in a
national board; and that it will do so, there is substantial ground for
hope, because the business men of the country have become in some
degree prepared for its exercise, by the training they have received in the
local organizations.
In these they have learned to look beyond their
own circle; they have been taught conciliation and concession; they
have been liberalized; and they are beginning to understand both the
strength and the value o f the inter dependence which subsists between all
the various branches of human industry. They will now be obliged to
take one step further; they must be ready to subordinate not only self,
but class and locality and section to the general good.
The scope of the
new board, as its name indicates, is national; if it is not this, it is nothing.
As already intimated, it cannot undertake to concern itself with purely
local matters, or to promote the advancement of any particular crafj^ or
calling; all these it must regard as “ parts of one stupendous whole,” and
must deal with them in their complex yet balanced relations.
The meetings of the National Board of Trade are to be held annually,
on the first Wednesday in December, and at other times as may be
necessary. They are not to be confined to any one city. It is not
intended to originate business at these meetings. Except by a two-thirds
vote of the delegates in attendance, no subject can be considered which
has not been submitted by one or more of the constituent bodies, and
notified to all, through the Secretary, at least thirty days beforehand.
This provision will save much time, and will tend to prevent crude and
partial action. There need be no apprehension that the National Board
1868]
TH E
N A T IO N A L
BO A R D
OF
TRADE.
45
will not have business enough before it; the clanger is much more im
minent that the calls upon its attention will be too numerous, and, in
consequence, that its influence will be scattered and weakened. N or need
it be feared that too long an interval will be likely to elapse before final
action can be reached by it. I f its judgments are to be sustained by the
concurrent convictions o f the merchants of the country, and especially if
they are to have any effect upon our national legislation, they must be
carefully formed and deliberately taken.
The officers of the Board are a President (Mr. Frederick Fraley, o f
Philadelphia), a Secretary and Treasurer (Mr. Hamilton A. Hill, of Bos
ton), and an executive council o f fourteen, the members of which are
Vice-Presidents of the Board.
Th;s council will probably meet three or
four times during the year, and is required to submit a report of its official
acts, and to make suggestions and recommendations to the Board at its
annual meetings.
III.
The plans by which the National Board of Trade proposes to
secure the objects for which it has been organised, have not as yet been
fully matured. These objects themselves, are quite general, and the pur
pose has been to make the method o f operation simple, to have as little
machinery in the constitution as possible, and to allow the institution to
take its precise shape according to the development of circumstances.
For the present it will not adopt a local habitation or open central
offices. It may be desirable, however, before very long, to collect a
library, and to accumulate commercial information in the shape of maps,
charts, reports and pamphlets; and then a permanent abode will be
necessary. Whether it will attempt the collection of statistics, will
depend upon the degree o f improvement which the Federal Government
shall make, in this department of the Treasury service. Hitherto, gov
ernmental statistics in the United States have been unworthy of absolute
reliance, and therefore, have been altogether unsatisfactory to business
men. It remains to be seen whether changes recently made at Washing
ton, will lead to a more favorable resu lt; if not, it will be the duty of
this National Board to undertake what the Government ought to do, and
ought to do well, and what with proper care, it can do in a manner better
than could be expected from any private association. In Great Britain
the system pursued by the government for the compilation of statistical
information, is most thorough and complete; and, consequently,
the Association of Chambers o f Commerce there, does not find itself
called upon to assume any part o f that important duty.
The executive officers of the Board will prepare business for the annual
meetings; and they will carry into effect whatever decisions may have
been reached at these meetings, which, for the present, will be the most
IN T E R N A T IO N A L
46
C O IN A G E .
[July,
important feature in the operations of the Board, Everything, however,
will depend upon the care and discretion with which the constituent bodies
shall select their delegates. They should send only men of approved
ability and integrity, men of large views, of patriotic impulses and o f
liberal tendencies, men who will have no political or otherwise personal
aspirations to gratify, and who will thus be qualified to deal with national
interests in a broad, national spirit. The nation in this crisis, needs the
counsel and the cooperation of just such men as these, true representa
tives of the commercial class, who are eminently fitted by their training, by
their experience and by their position, to grapple with the economical
and the financial problems which are now pressing upon us for a satis
factory solution. Certainly, the formation of the National Board of
Trade could not have been more appropriately and fortunately timed ;
and we sincerely hope that its usefulness will prove to be as far reaching
and as permanent, as the auspicious circumstances amid which it has,
entered upon its work, vould seem beforehand to promise.
INTERNATIONAL COINAGE.*
In June last, while the Universal Exposition was in progress, an interna
tional monetary conference was held in Paris, under the presidency o f the
French minister for foreign affairs. Delegates from the several European
nations were present. Mr. Samuel B. Ruggles represented the United
States, and his report on the subject has been communicated to Congress,
through the Department of State. From this it appears that a plan of
monetary unification was there agreed upon, the general features of which
are:
1. A single standard, exclusively of gold.
2. Coins of equal weight and diameter.
3. O f equal quality, nine-tenths fine.
4. The weight o f the present five-franc gold piece to be the unit, with
its multiples. The issue by France o f a new coin of the value and weight
of 25 francs was recommended.
5. The coins of each nation to continue to bear the names and emblems
preferred by each, but to be legal tenders, public and private, in all.
Senate bill 211 is designed to carry into effect this plan. Its passage
would reduce the weight of our gold coin of $5 so as to agree with a
French coin of 25 francs. It determines that other sizes and denomina-
R eport o f Mr. Morgan, from the Senate Committee on Finance.
18681
IN T E R N A T IO N A L
C O IN A G E .
47
tions shall be in due proportion of weight and fineness; and that foreign
gold coin, conformed to this basis, shall be a legal tender, so long as the
standard of weight and fineness are maintained. It requires that the
value of gold coins shall be stated both in dollars and francs, and also in
British terms, whenever Great Britain shall conform the pound sterling
to the piece of $5.
It conforms our silver coinage to the French valuation, and discontinues
the silver pieces of one dollar, and five and three cents, and limits silver
as a legal tender to payments of $10. The first of January, 1S69, is fixed
as the period for the act to take effect.
The reduction which this measure would effect in the present legal
standard value of the gold coin of the United States would be at the rate
of three and a-half dollars in the hundred, and the reduction in the legal
value of our silver coinage would be still more considerable.
A change in our national coinage so grave as that proposed by the bill
should be made only after the most mature deliberation. The circulating
medium is a matter that directly concerns the affairs of everv-day life,
affecting not only the varied, intricate and multiform interests of the people
at home, to the minutest detail, but the relations of the nation with all
other countries as well. The United States has a peculiar interest in such
a question. It is a principal producer of the precious metals, and its
geographical position, most favorable in view o f impending commercial
changes, renders it wise that w'e should be in no haste to fetter ourselves
by «ny new international regulation based on an order o f things belonging
essentially to the past.
Antecedent to any action by Congress on this subject we should care
fully consider:
I. The effect which the present abundant production of the precious
metals, especially o f gold, and the probable great increase in the supply,
as mining facilities are improved and more generally applied, will have
upon the purchasing power of these metals.
II. The question of preserving such a relation between gold and silver
as will retain the latter metal in free circulation, and continuance of the
coinage of such denominations of silver as will serve to encourage Ameri
can commerce with Mexico and with South American and Asiatic nations.
III. The choice of a standard of unification which, all things considered,
shall be least objectionable on account o f fractional weights and intricacy
of calculations.
IV . Of delaying action until the Paris plan has been adopted by the
commercial powers of Europe, and accepted by those nations on the
western continent with whom we have commercial relations; or at least
until their intentions in this regard are more fully known.
47
IN T E R N A T IO N A L
C O IN A G E .
[July,
V . Should not a period when the public mind is calm, more so than
now, on the subject o f monetary affairs, and when the national debt has
become less formidable, be chosen for initiating a change ?
V I . The ad visibility of further popular discussion of the subject, to the
end that the business as well as general public shall fully understand on
w:bat grounds so important a reduction in the value of our monetary uniti
the dollar, is based, and the further advocacy o f the merits of our own, so
that, should any existing system be accepted, ours shall be more fully con
sidered in that connection.
Uniformity in coinage and also in weights and measures has been the
pursuit of ages. Speculative systems have been advanced, only to be
given ud when subjected to practical tests, but the idea has never been
abandoned. N or was the recent occasion the first in which our govern
ment has been recommended, and that, too, with some urgency, threequarters o f a century ago, by the minister o f that country, to adopt the
French system of weights, measures, and coinage. But Congress, both
then and since, has properly exercised great caution on a subject so full o f
c implications. And the question of international unification yet remains
an open one, balanced between the facilities it would afford to foreign
commerce and the evils it would introduce into our domestic affair. The
adoption of some satisfactory and comprehensive plan, one to be adopted
because it shall best subserve the interests of all, and not because it is or
is not an existing one, may become desirable.
I f so, Congress will then
be ready to take part in effecting such a measure.
A t present, however,
there are questions of a very practical nature relative to the precious
metals, that begin to reveal themselves, and will soon press home upon
us, which largely outweigh in importance the more theoretical one of
assimilating all metallic circulations. Our situation as a commercial
nation makes it prudent that on this, as on every question affecting home
interests, we shall remain free to mould our policy to meet occasions as
they arise, following such course as shall appear best suited to develop
our great, almost limitless, natural resources, increasing by “ gentle means
the stream of commerce, but forcing nothing, rather than to hamper our
selves by international engagements or arbitrary regulations. A n error
now in fixing the values o f gold and silver would injure this nation far
more than any other. "We may safely trust to the natural laws of com
merce for the correction of any evils from which we have suffered. W e
have paid our seigniorage, we have met the demand for foreign exchange,
but who shall say that the course o f trade in the next ten years may not
make an American city, New York or San Francisco, the centre o f ex
change, and confer upon us the advantages so long enjoyed by European
capital ? Certainly no other nation can so well afford to wait.
1868]
IN T E R N A T IO N A L
C O IN A G E .
49
The movement proposed in the bill appears to be in the wrong direc
tion. The standard value of gold coin should be increased— brought up
to our own, rather than lowered. The reason must be obvious. Authori
ties unite in the conclusion that a fall in the value o f precious metals, in
consequence of their rapidly increasing quantity, is inevitable. M. Cheva
lier recently estimated that the present yield of gold amounts, in ten
years, to about as much as the entire production during the 356 years
which intervened between the date o f the discovery o f America and the
year 1846, when the mines of California were found; and Mr. Cobden
concluded that unless the cardinal rule of commerce, that quantity gov.
erns price, which applies infallibly to all other commodities, loses its
force when gold is concerned, this continued and great increase must be
followed by a reduction in its value.
Ross Browne, in his recent report, says that the time is not far distant
when the price of the precious metals, as compared with other proceeds
of human labor, must fall. “ They are now increasing more rapidly than
is the demand for them, and at the present rate of increase they would
soon have to fall perceptibly; but the production will become much
greater than it is. The vast improvements that have been made both in
gold and silver mining, within the last twenty years, are applied only to a
few mines. * * * If all the argentiferous lodes of Mexico, Peru, and
Bolivia, known to be rich, were worked with the machinery used at
Washoe, their yield would really flood the world.
*
*
*
Mew
deposits of silver will be found, and innumerable rich lodes on the Pacific
slope of the United States, not yet opened, will be worked with profit.”
The present enhanced prices of commodities and labor, the world over,
measures, to some extent, the increasing quantity and consequent deprecia
tion in the value of precious metals, and clearly indicates the direction
the change is taking.
The creditor, public and private, will be affected by this tendency, and
while he must abide a depreciation which proceeds from natural causes, he
may properly insist that artificial evils shall not be superadded.
O f the increased production of gold the United States supplies more
than half, and when the lines o f railway now pushing across the continent
shall penetrate the gold bearing mountains and valleys of California and
Oregon, and the western territories, mining improvements will be power
fully supplemented.
The American continent, too, produces four-fifths of the silver o f com
merce. The mines o f Nevada have already taken high rank, and Mexico
alone supplies more than half the world’s grand total. Our relations
with the silver-producing people, geographically most favorable, are other,
wise intimate. Manifestly our business intercourse with them can be
4
50
IN T E R N A T IO N A L
C O IN A G E .
[July,
largely increased, a fact especially true of Mexico, which, for well-known
political reasons, seeks the friendliest understanding. This must not be
overlooked.
' These two streams o f the precious metals, poured into the current o f
commerce in full volume, will produce perturbations marked and import
ant. Other countries will be affected, but the United States will feel the
effect first and more directly than any other.
The Pacific railway will open to us the trade of China, Japan, India, and
other Oriental countries, of whose prepossessions we must not lose
sight. For years, silver, for reasons not fully understood, has been the
object of unusual demand among these Asiatic nations, and now forms the
almost universal medium of circulation, absorbing rapidly the silver of
coinage. The erroneous proportion fixed between silver and gold by
France, and which we are asked to cojiy, is denuding that country of the
former metal. Our own monetary system, though less faulty, is not suit
ably adjusted in this respect. The silver dollar, for instance, a favorite
coin of the native Indian and distant Asiatic, has well-nigh disappeared
from domestic circulation, to reappear among the eastern peoples, with
whom we more than ever sec-k close intimacy. As they prefer this piece
we would do well to increase rather than discontinue its coinage, for we
must not deprive ourselves o f the advantages which its agency will
afford, and “ it would be useless to send dollars to Asia inferior in weight
and value to its w'ell-known Spanish and Mexican prototype”
Mr. Euggles says that nearly all the silver coined in the United States
prior to 1858 has disappeared.
A remedy is not to be found in the
adoption of a system that undervalues this metal, for that commodity like
any other, shuns the market where not taken at its full value to find the
more favorable one. It is a favorite metal, entering into all transactions of
daily life, and deserves proper recognition in any monetary system.
It is said that “ to promote the intercourse o f nations with each other,
uniformity of weights, coins, and measures o f capacity is among the most
efficacious agencies.” Our weights, coins, and measures now correspond
much more nearly to the English than to the French standard. Our
commerce with Great Britain is nine times greater than with France, and
if the former does not adopt the Paris system o f coinage— and we have
no assurance that she will— the United States would certainly commit a
serious error in passing this bill. Uo argument is needed to enforce this.
And what of the rising communities ? A properly adjusted coinage
would stimulate commerce with those great parts o f the continent lying
south and southwest o f us, with the West Indies, and the countless mil
lions of trans-Pacific countries. W e stand midway on the thoroughfare
o f traffic between these two widely-separated races. Our railways, canals,
1868]
IN T E R N A T IO N A L
C O IN A G E .
51
our natural highways, and merchant marine may be made to control their
carrying trade. But here, as everywhere else, a well-adjusted coinage be
comes a wand of power in the hand of enterprise. Tokens are not want
ing to mark the favor in which the United States are now held by China_
The unusual honor recently conferred by that government upon a citizen
o f this country was not alone because o f his fitness as an ambassador at
large, but was a mark as well of a friendly disposition towards this
country. Future harmony o f intercourse is assured, too, by their adop
tion as a text-book in diplomatic correspondence of a leading American
authority on international law. Much might also be said about the grow
ing partiality of Japan towards this country; but it is enough that the
recent opening of certain ports indicates an enlightened change in the
policies of these two old empires, o f which commerce, especially our own
is availing itself. There is nothing, indeed, in our foreign policy to create
suspicion in the minds of the cautious statesmen of Asia. W e are nonaggressive ; our vast domain leaves no motive for conquest; but, on the
other hand, our fertile, unpeopled territory invites settlers, and our mines
and the demand for labor on the Pacific slope are rapidly drawing thither
ward from Asia an increasing tide of emigration, aiding not only in
peopling that region, but in establishing closer relations as well between
individuals as a more liberal commerce between the nations.
Deferring to the third inquiry, it may be asked, should a new standard
be adopted, is the French system more suitable for us than our own ?
Doubtless the French system “ embraces all the great and important
principles of uniformity which can be applied to weights and measures,
(and coins as well,) but it is not yet complete. It is susceptible of many
modifications and improvements.” And it is not inconsistent with the
respect held toward so exalted a power as France, briefly for us to examine
somewhat more closely certain features of this question. W e are pro
ducers; France, Belgium, Switzerland, and Italy, (who have adopted the
system.) are non-producers, of the precious metals, and, therefore, wh.le
adding little to the common stock of material for metallic currency, are
not affected like us by an increase in gold and silver. Nor are they likely
to be influenced as we are to be, by other coming changes.
Neither is
there anything in the financial or commercial status o f France which en
titles her monetary scheme to a preference over all others in fixing a com
mon coinage, unless, in itself, it is superior to all others. This, in a
practical sense, is not the fact. Writers represent it as surrounded with
difficulties, and an eminent French author calls it “ the worst of all sys
tems.” Its basis is arbitrary, and the ratio it observes between gold and
silver— one of gold for 15-j of silver by weight, but one to 14 38-100 in
value— is a confession of the erroneousness oft he plan. In theory, her
52
IN T E R N A T IO N A L
C O IN A G E .
[July,
coinage is metrical, and yet it is said that France has not, nor never has
had, a gold coin containing an even number o f grams; or, practically, it
is unmetrical.
The bill proposes 1,612.9 milligrams, or 24T\95- grains, for the gold dol
lar. If adopted, and we should still give to our silver dollar a weight and
value equal to the Mexican dollar, 416 grains, we should establish a ratio
of value of gold to silver of 16T75 to one, while 15 to one is as high as it
would be safe to go, and where, indeed, our own standard places it. “ If
we consent to reduce our gold dollar as proposed by the Paris conference
to 24.89 grains, we could not possibly coin a silver dollar that would be
of any use to us in commerce,” for we should increase rather than dimin
ish the weight o f the gold dollar.
On the subject of the French monetary unit Mr. Dunning, Superin
tendent of the United States Assay Office, in New Y ork, a competent
authority, says:
The present weight o f the gold five-franc piece is not justified b y any scientific
reasons better than the mathematical accident that 620 o f them weigh exactly a kil
ogram, a circumstance which has not the slightest practical importance. The fact is,
this fractional and inconvenient weight, which the world is invited to adopt, was not
fixed upon by the Fi ench themselves by des:gn, but as the unavoidable result o f a false
theory.
Further, that after having fixed the ratio o f gold as one to 15-J, and
having adjusted the weight of their silver coins in integral numbers—
“ T hey w ere com pelled to accept for the five-franc gold piece the interminable
decim al resulting from the division o f 25 grams by 15.5, viz.: 1.612903225S0645.
T h e awkwardness and inconvenience o f this weight,” he adds, “ can be best shown
b y giving the w eight o f a few o f the gold coins o f France, Great Br tain, and the
Uniten States, as they w ill be if the proposed unit is adopted.” (See accompanying
tables.)
Mr. Dunning recommended for consideration a monetary unit of 1620
raillegrams, for which he claims greater facility of making calculation than
that proposed by the conference, and that it is also a compromise between
the French and English coin weights, and would require a reduction on
our own dollar of half a cent less than by the plan proposed in the bil 1_
Mr. Dubois, assistant assayer of the Philadelphia mint, concurs in the
views o f Mr. Dunning.
Other considerations aside, it may be said that until the leading nations
represented at the Paris conference shall adopt a plan o f unification, Con
gress may very properly decline to a c t ; for anticipatory legislation, while
disturbing relations existing between debtor and creditor, would accom.
plish no practical end. Mexico would not be partial to the French system
and Canada cannot be expected to accept it until its adoption by England’
Unification, to he desirable, must be universal. Unless its advantages are
1868]
IN T E R N A T IO N A L
C O IN A G E .
53
palpable to commercial people of Europe, occupying contiguous territories,
and whose intercommunication is constant, it cannot be of serious moment
to us, to whom the change would be of but comparitive usefulness.
It has been urged as a reason for the early passage of a law to unify
coinages, that commercial transactions with Europe would be focilitated
thereby ; and also that citizens of our country, in visiting Great Britain
and the continent, would be spared losses and annoyances if we possessed
uniformity. But it should be recollected that, in all large commercial
transactions, gold coin is accounted by weight and not by tale— a pro
ceeding more speedy and equally ju s t; and o f the moneys used abroad
by travellers from this country, probably more than 90 per cent is carried
in bills of exchange, a mode much safer and more convenient to the trav
eller, and which would be continued even if the bill became a law. The
British delegates at the Paris meeting stated that, “ until it should be
incontestably demonstrated that the adoption o f a new system offered
superior advantages, justifying the abandonment of that which was
approved by experience and rooted in the habits of the people, the British
government could not take the initiative in assimilating its money with
that of the nations of the continent.”
A period of suspension of specie payment like the present, it has been
stated, is a favorable one for inaugurating the change proposed by the
bill. But the juncture is one marked by great differences of opinion in
respect to tbe question o f circulation, return to specie payments, and the
public finances as a whole. A change in the value of coinage would but
add to tbe embarrassments o f the situation, and it may be remarked inci
dentally that the reduction of the legal value of the dollar would inure
largely to the benefit o f speculators in gold and hoarders of the precious
metals, a fact that might seriously prejudice the measure in public esti
mation.
If the nation were comparatively free from debt, Congress might with
more propriety consider the question of changing the legal standard o f
coin ; but one effect of reducing it as now proposed would be to deprive
the public creditor of nearly a hundred million dollars of his rightful due.
In the estimation of the committee such a proposition ought not to be
entertained by Congress. It is proper here to say that the delegate, Mr.
Buggies, who favors unification, has at no time thought it just to lower
the value of our coin without making proper allowance to the holder o f
the several forms of national obligations.
To be acceptable a change in our coinage must be a thing o f clearly
obvious advantage and proceed from the people. There has, however,
been no popular expression in favor o f tbe proposed plan, nor, indeed, any
voluntary action in that direction whatever on the part of financial men,
54
IN T E R N A T IO N A L
C O IN A G E .
[i July,
either in this country or elsewhere. If there has been any complaint in
regard to our monetary system, the fact has not come to the knowledge
of your committee. On the other hand, certain scientific bodies in our
country have already protested against any ill-considered change in the pre
sent American dollar. Our coinage is believed to be the simplest o f any in
circulation, and every way satisfactory for purposes of domestic commerce;
it possesses special merits of every-day value, and should not, for light
reasons, be exchanged where the advantages sought to be gained are
mainly theoretical, engaging more properly the attention of the philoso
pher than the practical man. The instincts of our people lead them to
believe that we are on the eve o f important business changes, and
we may therefore safely hold fast for the present to what experience has
proven to be good, following only where clear indications may lead, and
a future of great prosperity opens to our country. The war gave us selfassertion of character, and removed many impediments to progress ; it
also proved our ability to originate means to ends. Its expensive lesson
will be measurably lost if it fails to impress upon us the fact that we have
a distinctive American policy to work out, one sufficiently free from the
traditions of Europe to be suited to our peculiar situation and the genius
of our enterprising countrymen. The people o f the United States have
been quick to avail themselves of their natural advantages. The public
lands, not only, and the mines of precious metals, but our political institu
tions, have likewise powerfully operated in our favor, and will continue to
do so with increasing force.
Unification of the coinage, like all similar questions, should be taken up
without bias and considered on the broad ground of national interest. A t
the proper time, when the country is restored to a normal financial condi
tion, and the public ask a change in this regard, it may be well to appoint
a commission o f experts, carefully to consider the question in its various
bearings. Reflection and further observation here and elsewhere may
suggest the foundations for a better and more enduring system than the
one now proposed, which in the nature of things is but a provisional one.
Permanency is equally important with uniformity in our coinage.
John Quincy Adams, who spent several years in studying the question
of uniformity in weights and measures, and incidentally in that of coinage
— indeed, the latter cannot be separated from the other two— says :
I f there b e one con clusion m ore clea r than another, d e d u cib le from all the h isto ry
o f m ankind, it is the d a n g er o f hasty and incon siderate legislation u p on w e ig h ts and
m easures.
F rom this con viction the result o f all in q u iry is, that, w h ile all the e x is t
ing system s o f m e tr o b g y v e r y im p erfect and su scep tib le o f im p rovem en ts, in v o lv in g
in no sm all d eg ree the virtu e and happiness i f futu e ages ; w h ile the im p ression o f
this truth is profoun ly and a lm is t u n iversally fe lt b y the w i-e and p o w e ifu l o f t h e
m ost enlightened nations o f the g lo b e ; w h ile the spirit o f im p ro v e m e n t is o p e r a t in g
w ith an ardor, perseverance and zeal, h on orable to the hum an ch aracter, it is y e t
1868]
IN T E R N A T IO N A L
55
C O IN A G E .
certain that, for the successful termination o f all these labors, and the final accom
plishment o f the glorious object, permanent and universal uniformity, legislation is
not alone competent. A ll trifling and partial attempts at change in our existing
system, it is hope, will be steadily discountenanced by Congress.
In this conclusion, which applies with even greater force to coinages, a
fact fully recognized by Mr. Adams himself, the committee may safely now
unite.
For the reasons herein set forth it is respectfully recommended that the
bill be not now passed into a law.
A P P E N D IX T O M R . M O R G A N ’S R E P O R T .
MR. DUMING’ S SUGGESTONS.
U nited S tates A ssat O ffice, )
N e w Y oke , Feb. 8, 1868.
j
1. The present weight o f the gold 5 franc piece is not justified by any
scientific reasons better than the mathematical accident than 620 weigh
exactly a kilogram, a circumstance which has not the slightest importance.
The fact is, this fractional and inconvenient weight, which the world is now
invited to adopt, was not fixed upon by the French themselves by design,
but as the unavoidable result of a false theory. The famous coinage law
o f the 7th Germinal An. X I attempted to make a double standard, and to
fix the ratio of gold to silver as 1 to 15|-. Then having very sensibly
adjusted the weights of their silver coins in integral numbers, 5 grains for
the franc, and 25 grains for the 5 franc piece they-were compelled to
aceept for the 5 franc gold piece the interminable decimal resulting from
the division of 25 grains by 15.5, viz.: 1.61290322580645.
2. T he awkwardness and inconvenience of this weignt can best be shown
by giving the weight o f a few of the gold coins o f France, Great Britain,
and the United States, as they will be if the proposed unit is adopted :
Proposed weights,
Existing
adopting 1612.9
weight o f kilograms for mon
etary unit.
gold, 90o fine.
Mi litirams.
FRENCH COINS.
Milligrams.
F ive francs................................................
1,61*2.903
*1,612.903
*8,064.516
T w enty-five francs.................................. 8,064.51 i
One hundred francs................................. 32 258.064
*32,258.064
Equivalents
in troy
weights.
Grains.
24.8908
124.4544
497.8177
BRITISH COINS.
Four shilling p iece.................. ...............
1,6 27.'96
S overeign ..................................................
8,135.^-83
F ive sovereigns ...................................... 40,679,915
11,612.903
•j-8,064.616
+40,322.580
24.8908
124.4544
622.2721
$1,612.903
$8,064,516
$16,129,032
±32,258.065
Grams.
322.6806
1,612.9032
8,064.5161
24.8908
124.4544
248.9088
497.8177
Grains.
4,978.1769
24,890.884
124,454.422
UNITED STATES COINS.
D ollar.........................................................
1,671.813
H a lf eagles................
......................
8,350.064
E a g le .......................................................... 16,718.129
Double ea g le ........................................ .. 33,436.258
Grams.
One thousand francs— French..............
8 22,6801
One thousand dollars— United States. 1,671.8129
One thousand pounds sterling...........
8,135.9840
* No change.
t Reduction 0.8S percent.
t Reduction 3.52 per cent.
56
IN T E R N A T IO N A L
[July,
C O IN A G E .
3.
The following table shows the weight o f the same denominations of
coin, &e., by adopting 1,620 milligrams instead o f 1,612.9 for the mon
etary u nit:
Existing
weights o f
gold* 900
fine.
Milligrams.
FRENCH COINS.
Five francs...............................................
Tw enty-five franca.................................
One hundred francs...............................
Proposed w eielit
adopting 1620
milligrams for Equivalent
in troy
the m one
weight.
tary unit.
Grains.
Milligrams.
25
* 1 ,6 2 0
125
* 8 ,1 0 0
600
* 3 2 ,4 0 0
BRITISH COINS.
Four shilling p ie ce .................................
S overeign..................................................
F ive sovereigns.......................................
f 1,620
f\ 1 0 0
$ 4 0 ,5 0 0
55
125
625
$1,6 20
$8,1 00
$16,200
$ 32 ,40 0
Grams.
324
1,620
8,100
25
125
2.50
500
UNITED STATES COINS.
D o lla r....................................................... ............
H a lf e a g le .......................................... . . ,
E a g le .........................................................
D ouble eagles....................................... .
1 ,6 7 1 .8 1 3
Grams.
One thousand francs............................. .
One thousand dollars.............................
One thousand pounds sterling.............
5 ,0 0 0
25,0 00
1 25 ,00 0
N ote . — The exact equivalent o f 1,620 milligrams is in troy grains 25.0004 ; dis
carding this fraction o f 4-10000 involves a discrepancy in calculations o f only one
cent in $600, or 1-600 o f one per cent.
4. It will be noticed that the proposed unit o f 1,620 milligrams has
the merit of offering to Great Britain an even compromise of the differ ence between her present coinage and that of France, instead o f a reduc
tion o f the British gold coins o f 88-100 per centum to make them equal
to the French coins. The unit of 1,620 milligrams exactly splits the dif
ference, requiring an increase o f the French coins of 44-100 per centum,
and a diminution of 44 100 per centum in the British coins. This differ
ence is so slight as hardly to call for any legal adjustments of existing contracs in either country ; and while in the United States such an adjust
ment will doubtless be required, the proposed unit of 1,620 makes the
reduction of our coins almost one-half per centum less than would be
effected by the unit of 1612.9.
The exact difference as shown by the
above tables is 42 100 o f one per centum.
5. There is another very important advantage offered by the unit o f
1620 milligrams, which you and all who have to do with mint calcula
tions will appreciate. I allude to the facility of making calculations. I
will not attempt to exhibit the difficulties in calculating value from the
standard weight when the relation is expressed in such interminable
decimals as must result from the adoption of the unit 1612.9. But
you will see at a glance the facility of dealing with the unit of 1620.
* Increase 0.44 per cent.
t R eduction 0.44 per cent.
X Reduction 3.1 per ce n t.
1868]
IN T E R N A T IO N A L
C O IN A G E .
57
The weight of 1,000 francs, or $200, or £40, at 1620 milligrams to the
dollar, would be 324,000 milligrams.
These values are readily deduced
from the weight, as will be seen by the following examples :
_ France.
Great Britain.
U nited States.
Milligrams 824,000
— 9 =
36,000
-f- 9 =
4,000
~4=
1,000 francs.
Milligrams 324,0U0
— 9 = 36,000
— 9=
4,000
- f 20 =
Milligrams 324,000
— 90 = 3,600
- f 90 =
£40
§200
The above divisions are performed mentally without difficulty, and the
rule of calculation is exceedingly simple, it is not at the mint alone, nor
chiefly, that this facility of calculation will be appreciated. The transac
tions in coin and bullion the world over will be simplified by it. The
experts at the mint can soon adapt themselves to any system however
complicated; but for the convenience of commerce the relation of weight
to value in the coins o f the world ought to be simple.
0. If the troy system o f weights is to be continued in this country and
Great Britain, it will be immensely important that the monetary unit
expressed in milligrams should be easily convertible into troy weight. A
glance at the tables given above will show the discrepancy between the
unit of 1612.9 and the troy system, and also the beautiful and almost
marvellous harmony effected by the unit of 1620 milligrams.
7. I trust, however, that Mr. Sherman’s bill will contain a section
making the use of the French system o f weights obligatory in all the
mints of the United States. This change would seem to be almost a
necessary part of the plan of monetary unification o f the world’s coinage ;
and it would certainly be a judicious method of partially familarizing the
country with the metrical system, the universal adoption of which, even
if not perfect, is so devoutly to be wished.
I f you deem these remarks of sufficient importance, I should be glad if
you would send them, with your comments, to Governor Morgan of the
Senate.
Very respectfully and truly yours,
Mr. Dubois.
G
eorge
F.
D
u n n in g .
In forwarding this copy, I have only to add my hearty concurrence in
the views taken by Mr. Dunning. W hether they would arrest or em
barrass the plan of complete and prompt unification, is a point which I
mu3C leave to wiser counsels.
W ith respects of,
W m. E.
February 12, 1868.
D
u b o is ,
United States M int , Philadelphia.
58
THE ALASKA A PPRO PRIATION .
[July,
THE ALASKA APPROPRIATION.
The opposition developed in the House o f Representatives to the appro
priation o f $7,200,000 for the purchase o f Russian America suggests
considerable doubt 'whether the Alaska treaty may not after all be
defeated. It would be unfair to regard the House as altogether captious
in its opposition ; and yet there is a degree o f rashness in its discussion
o f this question which does not altogether bear examination. It must
be allowed that there is some ground for the House feeling jealous at an
apparent slight in the negotiation o f the treaty. W hile it is to be con
ceded as beyond all question that the Constitution invests the treatymaking power in the Executive and the Senate conjointly, yet it is quite
conceivable that, in a matter o f so much consequence and involving,
according to Mr. Sumner and Mr. Banks, a great national policy in the
future, the House should feel affronted at the negotiation having been
carried to the extent o f taking possession o f the territory without con
sulting the representatives of the people who are expected to vote the
money for the purchase. The House, naturally enough under such cir
cumstances, feels that there has been a stretch o f prerogative, in the case,
and is disposed to make the President and the Senate feel that in all
treaties involving the payment of money the House has practically a
very important control, which in future cases it may be convenient to
recognise.
It was doubtless imprudent to occupy Alaska before the purchase
money was actually appropriated. The act could hardly fail to offend
the respect of' the House for its prerogatives; inasmuch as it seemed to
im ply that the House was absolutely bound by the action of the treaty
making power, and had no option but to vote the public money, no
matter what their views as to the expediency o f the appropriation.
Such an assumption the Plouse could only be expected to resent. The
premature occupation o f the territory indeed is the principal cause o f
the opposition. Occupation before appropriation is wholly inconsistent
with our Constitutional provisions.
It assumes what should on no
account be taken for 'granted, that the House will certainly vote the
requisite appropriation. The action o f the House is discretionary in
these matters ; and, in all treaties involving the payment of money, a
proviso should be introduced making the engagement binding only in the
event o f the House of Representatives voting the required funds. It is
unfair toward the foreign power in treaty to make conclusive engage
ments with it, so long as it is unascertained whether those holding the
purse strings will advance the purchase money. I f the House intends
to teach our officials a lesson for their undue haste in this matter, and to
TH E A L A S K A
A P P R O P R IA T IO N .
59
establish a warning precedent for their su cce sso r it is impossible not to
respect the motive.
N ot a few representatives, however, appear to oppose the appropria
tion purely upon the merits o f the acquisition, as a matter o f public
policy. They regard Alaska as unneeded for strategic purposes ; and its
value for fishing, mining and lumber they consider as having been extrav
agantly over-estimated by the promoters of the annexation. F or our
selves we are ready to concede all this, and regard the treaty as a very
costly mistake. W e do not regret that the measure has been very
sharply criticised in the House, nor yet that a course has been taken
calculated to warn all the departments o f the Government against future
hasty treaties ; and yet we should deem it a great misfortune were the
opposition to be carried to the extent o f defeating the treaty. A s a
choice between the evils o f appropriating seven millions for the conclu
sion of a foolish treaty, and the dishonor o f repudiating a contract to
which the Government has fairly committed itself, we consider the
former decidedly the more preferable. The agents duly authorized for
the contracting o f treaties have made the engagement with Russia. The
ceding power was so generous as to allow us to take possession beiore
any part o f the purchase money was paid, and without exacting any
sort of security for its paym ent; Russia has removed her officers from
Alaska, and many o f her subjects have returned home at considerable
expense; and we have held possession for several months, introducing
important changes in the affairs o f the country. Is it to be supposed
that we are at liberty to do all this and then vacate, assigning no other
reason than that we have decided not to part with our money ? W ou ld
this be just ? W ould it be generous treatment o f a power which, above
all others, has shown itself friendly to us in times o f peril ? The least
that could be expected from Russia in such a case would be a demand
for compensation ; and are we prepared to submit to the humiliation
o f rendering such reparation? Or, if we should refuse to grant any
compensation, the subsequent disposition o f Russia toward the United
States can hardly be a matter o f question. Moreover, after such an
act, having ratified the treaty and taken possession o f the country ceded,
what would be the standing o f our honor with all foreign governments ?
If our treaties thus deliberately made and executed, are to be violated
upon any frivolous pretext, or upon mere quarrels between the co-ordi
nate branches o f the government, we must be content to be treated as a
power wdiose compacts are unworthy o f reliance.
In view, then, o f the grave international consequences wThich must
follow the failure o f this treaty, we can see no course but for the House
to make the requisite appropiiilion ; no matter how inconvenient to the
60
PAYM ENT
OP
F IV E -T W E N T IE S I N
GREENBACKS.
\ J u ty,
Treasury, how burthensome the acquisition. If a mistake has been
made, we have gone too far to turn back now. If the Executive and the
Senate have made a bad bargain ; if they have improperly committed
the country to it b y needless precipitation; if they have slighted the
House in their inconsiderate haste; if it be necessary to teach them a
lesson which will prevent a recurrence o f the error in other acquisitions
now sought; these are matters for adjustment between the House and
those invested with the power o f treaty; not for settlement between the
United States and Russia. There are other ways by which the House
can express its disapproval of this annexation policy than by defeating
compliance with the terms o f the treaty ; and we cannot but believe that
ultimately the representatives will conclude to first honor the treaty and
then take proper steps for preventing the recurrence o f similar errors.
THE PROPOSED PAYMENT OF FIVE-TW ENTIES IN GREENBACKS.
Politicians appear to think they have at length succeeded in making
popular the idea o f paying the Five-Twenty bonds in greenbacks. W ith
the people at large the belief doubtless has heretofore been, that the
principal no less than the interest o f all the bonds is payable in gold.
The suspension o f specie payments, they viewed as merely a temporary
incident o f war finance, and never dreamt that the twenty years obliga
tions o f the Government would be regarded in any other light than as
engagements to pay so much in coin. Besides, the agents o f the
Government in issuing the loans announced, while the Secretary o f
the Treasury confirmed the announcement, that the principal as well as
the interest was to be paid in gold ; and, although viewed in this light,
the engagements o f the Government thus assumed a very weighty and
serious aspect, yet there was no disposition on the part o f the people
to evade any part o f their engagements as thus understood, but rather
to establish an unparallelled precedent o f national honor, and to put on
record the fact that republics are mindful o f the rights o f their creditors.
So the matter stood until quite recently ; no other idea being entertained,
except by foreign censors, whose doubts were generally regarded at
home as but an expression of the unfriendly desire o f Europeans to
depreciate our character and institutions.
A few politicians, however,
in search of a popular issue tor the presidential election, pretend to have
discovered what they sought in the domain o f finance. The idea was
put out, at first cautiously, and then boldly, that the Five-Twenty bonds
were issued intentionally without any provision in the acts requiring
payment in gold, except as to the interest, and with a reserved purpose
that the Government should be free to avail itself o f the privilege o f
1868]
PAYM ENT
OF
F IV E -T W E N T IE S I N
GREENBACKS.
61
redeeming them pending the suspension o f specie payments ; and that;
with this view, the bonds were made payable, at the option o f the
Government, on the expiration of five years from date o f issue, in whatever
might then be the legal tender money o f the country. This option, it is
argued, was provided against the probable contingency that, after the
conclusion o f peace, the Government might have an opportunity of
taking up its obligations in the same depreciated paper for which it issued
them, and o f re-negotiating its loans under the circumstances o f the
improved credit resulting from the restoration o f the national authority.
The advocates o f the policy maintain that this opportunity has now
come, and urge that the Five-Twenty bonds shall be retired in currency
at the expiration o f the five years option, and new bonds issued bearing
4 or 5 per cent interest, and principal and interest made payable in coin.
This idea is now gaining ground rapidly as a political issue. The New
York convention has unequivocally committed itself in favor o f the pay
ment o f the Five-Twenties in greenbacks. On the othqr hand, the Chicago
platform, although it insists ,very empJ/^tKtlly 1ip4*J thb observance o f
good faith.ip jres^JSc^ to'. ljhe> pilblicj Obligations’, ‘yet contains nothing
to preclude!’th*£ .Supposition that this, .vej-j £durse may not be construed
in that sense by the leaders pfthe p ir ty l, Lin'd .hence we have a prominent
Congressman from Massachusetts claiming, in thebHouse, such to be the
true interpretation of the platfoi*i3 ,*;lnd the sentinierfCof J,he House drift
ing in the same direction; while’ Mr. Shermai/^funding bl^h now before
the Senate, is based upon a similar view o f the Mjay. These 'Circumstances
at least indicate that politicians believe the idea,a popular ope. That it
will be the settled policy o f the successful party 'after election we cannot
believe. The money was borrowed on the representations that the
bonds were to be paid in gold, and to insist now that tire agents o f the
Government had no authority to make such representations appears to
us too closely allied to repudiation for the American people to adopt it.
Besides the Senate is conservative and likely to remain s o ; and while
it does, such a scheme would find little favor there. A s this issue,
however, has been so prominently raised, it is not untimely to enquire
what would be the prospect o f success were it attempted.
The first necessity would be to obtain the required currency, and as
no considerable party seeks the issue o f more greenbacks, or would for
a moment tolerate the idea o f additional taxation to raise them, the pay
ment must be made through an exchange o f bonds. This exchange
must be accomplished either voluntarily on the part o f the bond
holders, or by compulsion. Let it be supposed that, to avoid the odium
o f a compulsory method, the bondholders be offered a four or five per
cent bond, principal and interest made specifically payable in gold, in
62
PAYM ENT
OF
F IV E -T W E N T IE S
IN
GREENBACKS.
\Julyi
exchange for their Five-Tw enties; what inducement is there to make
the exchange 1 Investors prefer to pay four to five per cent more for
Five-Twenties than for Ten-Forties, a five per cent bond expressly pay
able in gold, even although there is now considerable reason for expect
ing that the Government will treat the former as payable in currency ;
and it certainly is not very apparent how our political financiers are
going to persuade bondholders that it is to their interest to surrender a
6 per cent obligation for one paying only 5 per cent. If it be said
that Congress will declare itself not bound to redeem the Five-Twen
ties in coin, then bondholders will reply that for the sake of'securing
1 per cent more interest for fifteen years they are quite willing to take
the risks as to what may be the legal money o f the United States at
the period o f the maturity o f the bonds, and especially as there is a strong
show o f probability in favor o f the supposition that the Treasury would,
at that period, have resumed specie payments. These considerations
would manifestly induce the public creditors to decline any voluntary
offer to substitute €bfin>‘S ix-P er„ Cents by a bond bearing a lower rate
o f interest.
*
•
'•
..............
Let it be supposed, ho;v*»v£r„ that ‘the Treasury £jJl;in*therFiv3 -Tvventies at five years from ljutfj plating tjje lltjhle^s either to pay them in
greenbacks or to exchange them fo r' a* neW $ g«d bearing 4 or 5 per
cent interest, and made payable^rijcpirf; how would the case stand in
that event? A large majority o*f lire present holders o f Five-Twenties
have bought their bonds at 5 to 10 per cent premium, and in the event
o f accepting currency in their redemption would lose that amount o f
principal; a loss to which they would not consent except under com
pulsion. W ou ld the bondholders then prefer the alternative o f exchang
ing their bonds for one bearing a lower rate o f interest, say 5 per cent ?
That must depend very much upon their views as to the value o f
such a security. In ordinary times the five per cent bonds o f the United
States sold upon the market for more than their present price reduced
to gold. In 1860 the Fives o f 1874 sold at 100@ 102-1, which is equal to
141@ 143J with gold at its present premium. It must be remembered,
however, that then the public debt was only $65,000,000, and the total
national expenditure only $77,500,000, which placed the Government
credit in a very different position from that which it now occupies. A t
that time no question w7as entertained as to our ability and willingness
to meet all our obligations in g o ld ; now it is otherwise. It may also
be urged that Ten Forties are now selling at a good premium, and conse
quently a bond more or less o f that character ought to prove exchange
able at par for the Five-Twenties i f called in. The fact of Ten-Forties
having recently advanced t,o over par is due to exceptional causes. The
1868]
PAYM EN T
OF
F IV E -T W E N T IE S I N
GREENBACKS.
63
recent agitation o f the question o f payiug Five-Twenties in greenbacks
has caused foreign investors to give the Ten Forties a marked preference,
owing to the stipulation for the payment o f principal in co in ; while the
banks have, to a large extent, bought them for use as a deposit against
their issues o f currency in consequence o f their costing less, and yet sus
taining an equal amount o f circulation. The fact o f Ten-Forties ranging
above par is therefore, under these exceptional circumstances favoring
their value, no evidence whatever that an issue o f 81,000,000,000 o f
similar bonds could be put out at par. Due weight must be attached
to the effect upon the feeling o f the bondholders that would attend this
compulsory method o f dealing with the debt. Beyond question, the
mass o f the holders of Five-Twenties consider that the bonds are right
fully payable in coin ; and they would consequently feel themselves
wronged in being compelled to receive anything short o f gold. They"
would regard the action o f the Government as simply a dishonest
pandering to the desire o f the masses to get rid o f the burthens o f
taxation; and would argue that this was but the first step in bad
faith, which from like motives might lead to further measures o f repu
diation. They have already witnessed a loud clamor against the bond
holders, and in the event of Congress practically recognizing this
hostility, they would be apt to conclude that the public creditors have
no security in the good will o f political leaders and the people. It would
seem then to be a probability amounting almost to certainty that the
holders o f Five-Twenties would, under the circumstances supposed,
almost universally accept currency in preference to the new bonds, and
eschew all further connection with Government securities. W hat could
the Treasury do in the event o f matters taking that course? W ith an
average o f about 830,000,000 o f currency in its vaults, its means for
retiring the bonds would be exhausted in two or three days, and it would
be compelled to abandon the scheme and allow the bonds to run on to
maturity.
W e think that the above considerations, carefully weighed would lead
to the’ conclusion that any effort to retire the Five-Twenty bonds in
the way now agitated by politicians must prove an utter failure, and a
gratuitous injury to the national credit. The clamor respecting the
payment o f the bonds in greenbacks may answer well enough for elec
tioneering effect; but any party undertaking to put such a policy into
operation must shoulder the responsibility o f a disgraceful financial
failure.
64
B R A Z IL IA N
F IN A N C E S .
[July,
BRAZILIAN FINANCES.
W e Lave received from the Brazilian Consul General the financial
report of the department of Finance of Brazil, showing the debt, revenue,
and expenditures for several years past, and" the estimates for the coming
year of that government. The increasing interest felt in this SouthAmerican State has induced us to make a full analysis o f this report
which we give below.
ESTIMATES FOR THE COMING TE AR .
In estimating the receipts the Finance Minister says that he follows a
process which has been justified by facts, unless when extraordinary cir
cumstances disturb the ordinary course of the public revenue. This pro
cess consists in ascertaining, as far as possible, what has been the product
collected of the current year, up to the date on which the estimates are
organised, and in basing the calculation of receipts upon the figures thus
obtained. The elements for this work are the returns o f the various col
lecting stations in the municipality o f the court and of the treasuries of
fazenda in the provinces. The treasury possesses returns of the year
1867-8 up to February of this year, from some treasuries, from others up
to December last, and from the rest up to September, 1867. If we unite
the data furnished by those documents and with them make the propor
tional calculation, the sum of 64,435:6828447 is obtained for the presum
able revenue of the said fiscal year.
In order to ascertain how far this result approximates to the truth, it
is necessary to recur to another process of valuation, recommended by
the law namely: to taking the average o f the revenue in the three years
preceding that of the estimates. The revenue having been 56,995:9288
628, in 1864-65, 57,815:567$4S3, in 1865-66, and 61,152:4788387, in
1866-7, the average is 58,054:6588163. As, however, for greater exact
ness, the revenue o f the years 1865-66 and 1866 67 do not include the
yield of the D. Pedro II. railway, which did not belong to the State
in 1864 65, it is proper to add the amount of this yield, now valued at
1,500,0008, to the average given above; doing which will raise the sum
of the average to 61,154:6588166. In the sum o f 64,435:6828447,
obtained bv the calculation in table I, is included that of 2,900:000-8
which represents approximately the product of the taxes levied or
created by the law o f September last, whose collection has already com
menced. Deducting this amount, the remainder, reis 61,535:6828447
shows how exact is the calculation based on the product collected of the
current year, inasmuch as the difference observed between the latter result
and that of the calculation by average, is only the effect of the con
stant progression of the public income.
1868]
BRAZILIAN
FINANCES.
65
Thus, therefore, we would have the sum of 61,500:000$, for base to
the estimate if we had not to look to that increase of the ordinary resour
ces of the treasury which will result from the dispositions o f the afore
said law of September 26, last. The increase which the new taxation
will give to the public income cannot yet be estimated with exactness;
some imposts commenced collection only in October last, that is, in the
fourth month of the current fiscal year; others affecting foreign
commerce required a certain delay; and the rest still depend upon diffi
cult and therefore dilatory assessments, and upon the completion o f the
new tariff. Meanwhile, by the collections made up to the present time,
we have no reason for believing that the reality will differ much from the
calculations made when the legislature discussed the ruling law of the
estimate, when the product of the new taxation was valued at 12,250:000 $ 000 .
Supposing that the legislature, appreciating the exigencies of our finan
cial system, will continue to authorize the collection o f those imposts, the
finance minister says he has added the above sum to what was ascertained
as base for the valuation o f the receipts, and I have estimated those of the
fiscal years 1869-70, in the terms o f the bill, at 73,000:000$, a margin
thus remaining for any eventuality.
The annual progression of the revenue may be deduced from the above
figures. The receipts were :
In
In
In
In
1864-65 ........................................................................................................
1365-66, including yield o f D . Pedro I I . railw ay.............................
1866-67
“
“
“
“
...............................
1867-68
“
“
“
“
c o l less t h a n .. .
56,995:0231628
58,146:8431993
61,469:437^500
61,535:000$000
— without the product of the new taxes. So that, at the height of the
struggle with Paraguay, the report says, the powers of the country have
not failed, nor should we fear that they may fail.
One of the most important branches o f agriculture— coffee— promises
in this year a harvest exceeding that o f last year (which itself was large)
to judge by the following figures, relating to the mart of R io de Janeiro;
which is that of greatest movement and that of which we can obtain the
latest and completest notices, when comparing the first quarters o f the
last and current years:
E n te r e d .......................................................................sacks.
E x p o rte d ..................................................................... “
Stock, March 3 1 .......................................................
“
1867.
395.586
508,907
57,000
-1 st quarter o f -
1868.
422,922
523,615
160,000
A s to cotton, the chief centres o f production being the provinces o f P er
nambuco, Maranhao, Bahia, Alagoas, Ceara, Parahyba and S. Paulo, the
information held by the treasury is not of so recent date, nor so complete,
wherefore it cannot be judged whether this branch o f production tends
BRAZILIAN FINANCES.
66
[July,
with certainty towards progression, although it is incontestable that it has
augmented in some provinces.
After furnishing the estimate o f income, the report passes on to the
expenditure. The expenditure for the fiscal year of 1869-70 is calcula
ted at 70 798:932$333, thus distributed among the various ministries :
E m p ir e .............................
J u s t ic e .............................
F oreign............................
M a r in e .............................
4,932:9668828 W a r .................................... 13,855:8728691
3,258:069*5649 F in an ce................................28.431:7428771
748:419$998 I A griculture...................... 11,819:6998710
7,715:1608716 |
Comparing the sum o f these amounts with what was voted for the fiscal
year o f 1868A59 some excess is noted, which arises from the indispensable
development of some branches o f public service. The excess arises from
a larger amount being needed for payment— of the interest of the internal
debt, which has increased with the issue o f bonds; of pensions, whose
number has augmented in consequence of the prolongation o f the war; of
differences in exchange; and, finally, o f the service increased by the pay
ment of the guarvntee o f interest on the Sao Paulo railway.
A summary of the foregoing as follows:
Estimated r e ce ip ts......... ........................................................................
“
expenditure'.........................................................................
T he fiscal year o f 1869-70 w ill show a surplus o f .........................
73,000:0008000
70,786:9328333
2,213:0678667
PRESENT STATE OF THE TREASURY.
In the current fiscal year is continued the high expenditure exacted by
the war against the government of Paraguay. And, although the treas
ury has made use o f part o f the authorizations conceded, still it struggles
with some difficulties.
The receipts o f the present fiscal year, with resources from loans,
etc, w ill not be less than ....................................................... .............. 109,047:7398085
The total expenditures w ill b e .................................................................. 133,396,5548985
Comparing the receipts with the expenditures there is a deficit o f .
24,348:8158900
which the government was authorized to provide for by the issue of paper
money and did in part.
EXTERNAL DEBT.
The debt of Brazil due abroad has beenreduced by £349,900, the
amount paid off inthe course of thelast year, andit shows at present the
sum of £14,068,600, inclusive of £376,314 yet owing by the Pernambuco
Railway Company.
The bonds redeemed belong :
T o the loan o f l 8 3 9 ...................... £10,000 To the loan o f 1S 63...................... £116,400
“
18 52......................
28,900
“
“
1865....................
70,400
“
“ 1S 58.....
64,800
“
“ 18 59.....
11,600
Total
£348,900
“
“ 1860...... 46,800
BRAZILIAN
FINANCES.
67
The outlay for interest, commission and brokerage on the foreign debt,
during the fiscal year of 1869-70 is estimated at £931,163, namely:
£657,358 for interest and commission, and £237,805 of amortization and
respective commissions and brokerage. As, however, the loan of 1839
matures in January, 1869, the outlay for the debt spoken of will exceed
in 1869 the £931,163 estimated above by £277,800, to which the above
debt will be reduced at its maturity, if it be redeemed in the manner
authorized in Art. 36, TsTo.2 of the ruling law of the estimates. To meet
the outlay made in Europe, both for this and other ministries, remittances
of £2,025,000 were made from April 22, 1867, to April 30,1868, costing
at various rates 25,049:229$281.
INTERNAL FUNDED DEBT.
On the Slst of March last 125,206:700$ in bonds of the public debt
existed in circulation, which gives a result of an increase o f 18,856:100$
over that of last year in April, when 106,350:000$ was circulating. This
increase arises from bonds for 46:600$ given in exchange for Don Pedro
II. railway shares; 16,896$800 issued by virtue of the acts of June 28,
1865, and September 19, 1866 ; 1,912:300$ sold in the provinces ; and of
400$ in a bond at 5 per cent interest interest given in the province of Per
nambuco in payment o f a debt inscribed in the auxiliary of the Grande
Livro. In the above sum of 16,896:800$ is included that of 1,620:000$
issued as premium for the liberation of slaves for service in the war, and
that of 117:400$ in payment to Dr. Thomas Cochrane, arising ^from a
debt of a previous year, ordered to bo paid in bonds by an order dated
October 24, 1867. The bonds existing in circulation are owned as
follows:
T y n a tion a ls............................................................................................................ 95,971:7( 0$
“ foreigners............................................................................................................ 5,032:500$
“ public establishments...................................................................................... 23,535: It'0$
“ various in the provinces.................................................................................
667:400$
T ota l................................................................................................................ 122,206:700$
For the payment of whose interest the Caixa de Amortizacao received
6,537:4571558. In the account of remnants of unclaimed interest, which
is converted into bonds by virtue o f Art. 48 of law of October 28, 1848}
there is a profit of 394:743$669.
TREASURY BILLS.
The total of the treasury bills in circulation upon April 30 last was
69,985:400$, which, compared with 45,369:600$, to which it amounted
at the same date last year, shows an increase of 24,615:800$.
68
BRAZILIAN FINANCES.
[July,
PAPER MONEY.
The paper m oney in circulation upon March 31 last amounted t o ........... 42,560:044$
A t present it is raised t o . ................................................................................................ ..
81,749:274$
Showing an excess o f ............................................................................................ 39,189:280$
— which arises from :
1st. The i-sue corresponding to the notes o f Bank o f Brazil called in
with the product o f the sale o f its bullion, effected since last years
report.................................................................................................................... 14,867:350$
2d That made on account o f the credit o f 50,000:000$, granted by the
law o f Septem ber 28, 1867............................................................................. 20,647:830$
3d. That relating to the 11,000:000$ due to the Bank for calling in
treasury notes, as provided b y the law o f September, 1866.................
3,701:250$
Less the discounts on various substituted notes............................................
39,216:43' $
27:200$
Total.................................................................................................................. 39,189:230$
The report states that the government was obliged to recur to the
credit of the act of September 28, last. When I solicited this credit says
the Finance Minister, I promised to use it in extreme cases only, and, in
fact, it nas only after trying other means recommended by experience, but
fruitless as to enabling the treasury to regularly and promptly support its
heavy burdens, aggravated by the crisis, that I decided on employing it.
W hen the metallic reserve bought from the Bank of Brazil by the gov
ernment was expended it became indispensable to undertake the acquisi
tion of gold, so as not to interrupt paying the officers and men of the
army and navy operating in Paraguay. The ordinary resources of the
treasury were insufficient for this and it became necessary, therefor?, to
recur to operations of credit in order to obtain means. I have already
shown you that the impropriety o f attempting a loan in Europe will sub
sist as long as the war lasts; I sustained this idea in the debate on the
law No. 1,508; and, although our financial state should improve through
the ruling law of estimates having created taxes, no circumstance indicates
an opportunity for making that attempt. The government having to
rely upon our own resources, it reduced the price of bonds to obtain a
greater issue of them, and it tried to attract more floating capital to the
treasury by raising the rate of interest.
M eanwhile
the
u rgen cy o f the h eavy m on th ly expenditures did uot
perm it w aiting for th e slow effect o f these measures, w hich, indeed, from
the extension given to the issues, must little b y little g o on p rod u cin g
slenderer results, and thus on ly the em p loym en t o f both o f them co m
bined w ith that o f paper m on ey co u ld be efficacious, as in fact was the
case.
o f th e
S in ce O ctober the governm ent has issued paper m on ey for accou nt
credit referred t o ; but at first issue had in view to aid in the
1868]
BRAZILIAN
FINANCES.
69
operation of paying for the gold bought from the Bank o f Brazil, and it
would be completely annulled on abandoning the issue for account o f the
credit of the law of September 12, 1866, corresponding to that payment,
because it is a matter o f indifference whether the issue be for account of
one or other law, so long as it be not in duplicate. In December, how
ever, the necessities of the treasury forced the government to effectively
issue paper money, notwithstanding the considerable sale of bonds then
being made and the great revenue of the custom house, produced by the
anticipation of the clearances.
The act of the government, therefore, appears to me to be justified, and
meanwhile, it has not, as I have already observed, produced the evils so
much feared from it.
CIRCULATING- MEDIUM.'
T he paper in circulation at the dates o f the last returns received at
the treasury amounted to nam ely..............................................................
121,686:209$
Paper money issued to March 31 la st...................... ....................................
Bank paper issued to February 21 l a s t .......................................................
81,749:214$
42,936:935$
The effective issue o f the banks w as—
Bank o f Brazil.................................................................................................
Bank o f Bahia................................................................................................
Bank o f Pernam buco......................................................................................
40,914:835$
2,007:000
15:100$
Having nearly concluded the calling in of notes of the Bank of Brazil
with the product o f the sale of its bullion, and having commenced that of
11,000:000$ corresponding to the debt due by the treasury to the bank
for redemption of paper money, the respective issue is now almost in the
state prescribed by the act of September 12, 1866.
PUBLIC REVENUE.
The revenue collected during the fiscal year of 1866-67 amounted, in
cluding the deposits, to: 66,756:431$145.
Being from :
Im portation...........
Maritime dispatch.
E xportation............
Interior ..................
Municipality taxes
Extraordinary . . . .
D eposits..................
37,397:0531576
296:1428687
10,674:640$896
9,941:4408011
2,077:90S$930
1,457:2398835
4,911:005$210
W ithout the deposits it exceeds the estimate of 55,000:000$ by
6,845:4251935.
That of 1805-66 amounting with the deposits to 6 3 ,27l:87l$336, an
increase of 3,484:559$S08 took place in 1866-67.
Excluding the deposits of both years the revenue of 1866-67 was
greater than that of 1865-66 by 3,602:823^023.
f
70
BRAZILIAN
[July,
FINANCES.
Comparing the different items o f revenue in both it may he seen that
the collection of 1866-67 rose above that of 1865-66 in the following:
Im p o rta tio n .....................
M aritim e d is p a tc h .. .
Interior.........................
M unicipality................
A n d dim inished in :
E x p o rta tio n ....................
E x t r a o r d in a r y ...............
3,95 5 :6 5 8 *8 2 2
6 :9 0 9 *5 1 2
1S9:665$947
2 1 :0 7 9 *4 0 0
or 11.82
or 2 .03
or 1.94
or 1.02
290:6598425 or 2.65
278 :8 2 1 *2 3 3 or 16.06
And there was a diminution of 118:273$215 in deposits.
COTTON.
According to return 97 the export of cotton was in:
1866-67 ........................................................................................
1865-66 ........................................................................................
1864-65 ........................................................................................
1,816,387 arrobas valu e 23,741:598$
2,899,004
“
“
46,917 :409$
1,126,015
“
“
31,558 :635$
However as the export from Ceara in 1866-67 is altogether wanting
together with that of the last half year from Pernambuco, the export of
1866-67 will not have the relation with the other years which would
appear from the return.
COMMERCE OF IMPORTATION, EXPORTATION AND NAVIGATION.
The value of the import trade in 1866-67, according to the official
data in the treasury, was 43,483:745$; 22,503:313$, or IS.6 per cent
more than the average of the five years 1861-2 to 1865-6, and 5,716:903$,
or 4.1 per cent, more than 1865-6.
This importation took place in the various provinces in the following
proportion, which is compared with 1 8 6 5 -6 :
R io de Janeiro........................
B a h ia ............................................
Pernam buco................................
M aran h ao....................................
P ara..............................................
g . P ed ro.......................................
.P a u lo ................................. . .
P a ra n a ..........................................
P arahyba...................
C.-ara.........................................
Santa Cathari ia .........................
A ls g o a s ......... ..............................
S ergip e.........................................
Espirito S anto........... ................
R io Grande do N orte................
P ia u o y ..........................................
1865-66.
80.709:067$
17.598:941$
21.083:655$
2.946:760$
4.613:218$
6 .5 1 4 :9 2 -$
1.295:948$
15 4:08 -$
26:067$
1.924:546$
449:246$
*
62:250$
6 : 77$
1:209$
30:853$
293:157$
136 .7 6 6 : :4 2 $
1866-67.
80.468:064$
17.878:203$
22.211:290$
4.028:3838
5 .3 9 6 :7 0 -$
7.746:076$
1.546:755$
237:278$
99:446$
2.586:913$
630:912$
219:537$
17:390$
2:116$
171:654$
252:957$
143.48 3:745$
over in ’65-66.
................
279:262$
1.127:645$
1.08 :62 $
783:488$
1.231: 44$
250:807$
8:195$
73:379$
662:489$
1S1:6S6*
157:287$
................
907$
140:801$
.
6 .0 5 3 :8 9 3 $
Diminutions occurred: in Rio Janeiro, 251:003$; Sergipe, 45,787$,
and Piauhy, 40,200$; total, 336,990$.
BRAZILIAN
71
FINANCES,
The countries whence the importation came in 1866-67 were the fol
lowing:
58,276:9051783
4,300:628*878
22,023:196*953
12,825:712*734
5,580:451^780
4,84U:509?47y
805:919*990
222:494|583
34:1348495
12:2778800
151:7738425
46S:789$695
537:023*100
1,383:8558778
910:268*440
3:017*850
23:400*000
680*000
29:744*000
1,854:784*001
1:381*200
30,747:145*332
G re a t B rita in and possessions
U n ite d S t a t e s ...................................
Fran ce and possessions...............
L a P la t a .................................................
P o rtu g a l and p o ssessions.. . .
H an se atic C i t i e s .............................
Sp ain and possessions..................
S w e d e n .................................................
D e n m a rk .............................................
R u s s ia ......................................................
Co ast o f A f r ic a ..................................
P a l y .........................................................
C h ile .........................................................
B e lg iu m ................................................
A u s t r ia ...................................................
H o lla n d ...................................................
C h in a ...................................................... .
P e r u .........................................................
Porte of the M editerranean. .
P o rts o f the E m p ir e .....................
F i h e rie s................................................
P o rts not m entioned....................
143,483:745*296
Total
The value of the exports of native production and manufacture to
foreign countries was in 1866-67 156,030:906*, 21,516:502, or 15.9 per
cent more than the average of the five years 1861-2 to 1865-06, and less
by 1,066:652$, or 0.67 per cent than in 1865-66.
Each of the provinces of the Empire contributed as follows, compared
also with 1865-66 :
1866-G7.
R io de Janeiro...............
Bahia................................. .. 16,202:328$
Pernam buco...................
Maranhao........................
8,619:223$
P a ra ................................. . .
S . P edro.......................... ., .
7,38S:977*
S P au lo........................... . 6,713:397*
Parana.............................. . 2,099:434*
F arahyba......................... ,.
4,204:062*
C eara............................... .
Santa Catharina.............
490:830*
A lag oas............................ ,. 4,106:557*
S ergip e..................... ....... . 1,233:157*
Espirito Santo................
Pvio Grande do N orte .
630:146*
P iauh y............................. .
238:452*
T ota l....................... 156,020:906$
1865-66.
69,628:962*
19.247:941*
26,084:468*
6 /8 3 :4 1 9 *
6,952:715*
7.564:972*
7,870:766*
1,569:286*
6,695:290*
3,180:558*
518:362*
7,582:212*
1,391:310*
14:555*
1,353:811*
248:892*
157,087:568$
,------ Difference in 1866-67-----,
More.
Less.
18,215:275*
...................
3,045:613*
______ . . .
3,648:327*
1,673:512*
1,666:478*
...................
175:996*
1,157:369*
510:148$
...................
.................
2,49, :32SS
72:910*
...................
2,7682*
3,475:654*
158:473*
14:555*
723:665*
39:260$
...................
15,524:071$
16,5 90;723$
72
MICHIGAN CENTRAL RAILROAD.
The countries whither the exports of 1866-67 went were the following :
S w eden........................
H olland.......................
Hanseatic cities.........
Great Britain and p o s
sessions ..................
France ifc possessions.
Spain & possessions..
Portugal^ possessions
B elgium ......................
I t a ly ...........................
C h ile.............................
46 :669*717
773:111$06S
80 :356|944
4,816:242$458
37,283:9741040
18,582:278*631
165:387*149
4,347:275*259
328:048*841
61:381 *600
734:4001624
414:903*411
31,188:066*047
7,014:207*881
149:347*716
913,630*980
448,869*272
16,511:891*087
La P lata.....................
T urkey.........................
D e n m a r k ....................
Coast o f A frica .........
Ports o f the Baltic an t
Mediterranean.........
Ports not know n.........
C onsum ption.............
1,363:562*864
30,335:659*000
42:612*178
T otal.................
156,020:906*766
The total of the direct importation and the national exportation abroad
vas in—
1 8 6 7 -6 7 ............................................................................................................
Compared with 1866-66, nam ely.............................................................
There was an angment o f ............................................................................
Or 1.5 per cent, and, if com pared with the average o f 1861-2 to
1865-6, nam ely......................................................................................
299,604:551$
294,854:400$
4,650:251$
255,4S4:836*
— these was an increase o f 44,020:815, or 17.2 per cent.
The value of the importation with certificate (carta de guia) was in
1865-67 24,902:670$, 823:969$, or 3.4 per cent more than in 1865-6,
2,448:821$, or 12.6 per cent more than the average of the five years
1861-2 to 1865-6.
The re-exportation in 1866-67 arose to 1,786,052$, 447,993$, or 33.4
per cent more than in 1865-6, and 377,686$, or 26.8 more than the aver
age o f 1861-2 to 1865-6.
The number of national and foreign vessels cleared in the foreign trade
of 1866-67 was—
Entered 3,439 vessels................................. 1,245,214 ton s........................... 51,450 m en.
Sailed 2 429 “
1,496,274
(* ) tons. 49,655 “
— including nationals—
Entered 255 vessels.......................................
Sailed 209
“
43,579 tons.........................
1,953 men.
45,703 (* ) tons. 2,174 “
MICHIGAN CENTRAL RAILROAD.
This important road extends from
Detroit to Chicago, 284.8 miles, and
forms one link in the great chain of roads between N ew Y ork and the latter
city, on the most northern route. The company also leases the Joliet and Indiana
Railroad, extending from Lake Station to Joliet a d stance o f 44.5 miles, mak
ing the total leDgth operated by the company 329.3 miks.
The annual report
o f operations tor the year ending May 31, 1868, has just been issued, from
1SG8J
73
MICHIGAN CENTRAL RAILROAD,
which it appears that there has been a fa llin g o ffo f§ 1 0 2 ,718 in the receipts from
passenger traffic, and an increase o f §195,452 on the earnings from freigh t; the
expenses of the year have also been less by §112,231, which makes t* e net
earnings §257,620 larger than in the previous fiscal year.
The decrease in receipts from passenger traffic is attributed to a reduction in
ratts of fare, and also to the diversion o f passengers by competing lines, chi fly
through the system o f allowing commissions on the sale o f tickets, which the
Michigan Central Company refuses to do. The increase from freights is princi
pally due to the completion o f the third rail on the Great Western Railroad
o f Canada, and the Iron Ferry train steamer at Detroit, thus allowing freight
cars to go through by that route without breaking bulk.
The results o f operations for the past five years have been as follows :
EARNINGS.
1863-64. 1861-65.
1865-66.
1866-67. 1867-68.
Passengers.....................................................$1,262,415 $1,771,814 $2,061,335 $1,824,226 $1,721,506
( A v .p .p a s s .p .m .) cen ts..............................
2 44%
2'69
2.72
2'69
----f r e ig h t ............................................................. 2,073,274 2,233,529
2,208,592 2,285,522 2,480,974
(A v. p. ton p. m.) cen ts...............................
2*25
3 06
2 60
2 49
2 45
M iscellaneou s...............................................
98,859
140 076
176,563
215,743
298,402
Total gross earnings.....................................$3,434,548 $4,145,419 $4,446,490 $4,325,491 $4,470,879
E xpenses......................................................... 1,720,125 2,406,149 2,808,376 2,826,777 2,714,545
N ot e a rn in g s..........................................$1,714,423 $1,739,270 $1,638,114 $1,498,714 $1,756,334
“
kk
p e r c e n t ...........................
49*92
41*96
36*94
34*65
39*28
The
general income account, varying somewhat from the above figures,
exhibits the total revenue and disbursements as iu the following statem ent:
. 1863 4.
1864-5.
Balance from prev. years............................. $772,636 $1,002,894
Receipts from e a rn in g s............................... 3,417,1S0
4,121,213
1S65-66. 1866-67. 1867-68.
$703,385 $460,803 $443,450
4,415,279 4,333,705 4,480,230
Total revenue ........................................ $4,189,822 $5,124,107 $5,159,664 $4,794,507 $4,923,6S
EXPENSES.
From which amounts were disbursed as follows :
1S63-64
1864-65. 1865-66.
1866-67.
1867-68.
E x p e n s e s .....................................................$1,720,125 $2,406,149 $2,808,876 $2,826,777 $2,714,545
Sinking fu n d .............................................
84,500
84,500
84,500
81,500
84,600
Interest and exchange.............................
600,217
022,691
643,726
628,081
646,170
Cash dividends—J u ly...............................(6) 863,432 (12)757.889 (4) 259,648 (5)849,135 (5)406,025
“
“
—Jan .................. ........... (6)363,432 (6)378,942 (5)344,035 (5)375,135 (5)408,860
Stock dividend, Juiy,’ 65....................................
....
(6)389,472
U. S. tax on d i.id en d s.............................
21,753
69,935
55,723
26,920
87,817
on receipts.................................
33,469
95,280
113,381
60,503
43,518
T otal disbursem ents............................. $3,186,928 $4,415,722 $4,698,861 $4,351,057 $4,441,437
Balance to next year.................................$1,002,894
$70S,8S5
$460,803
$443,450
$582,213
GENERAL BALANCES.
The general balances are shown in the following accounts, as of May 31,
yearly :
1864.
Capital s t o c k ............................................ $6,315,906
B o n d s ........................................................
7,740,989
U . S. tax on coupons.............................
5,435
Unpaid dividend-*....................................
1,598
J a ck - 011, Lansing a n d ... ....................
Saginaw HR. C o ....................... ..........
—
Bills aDd su n d ries...................................
......
Balance o f in co m e ...................................
1,002,894
1S65.
1866.
1867.
1S6S.
$6,491,386 $6,982,866 $S,070.066 $8,477,366
7,565,489 7,463,489
7,268,989 6,968,938
158
58
4
33
650
1,059
955
914
----15 492
708,-.85
...L
279,915
460,80 3
233,409
443,450
....
----5S2,243
T otal...................................... . ........$15,066,822 $14,781,570 $15,188,190 $16,017,543 $16,029,516
14
COMMERCIAL
CHRONICLE AND
[July,
REVIEW.
P e r contra the follow in g are shown :
Construction, & c.................................... $13,805,516 $13,805,576 $14,316,123 $14,030,814 $14,014,167
Materials..................................................................
174,0i6
2SB,065
200,887
153,732
Cash, 1 ans, & c .......................................
807,841
224,606
75,750
333,660
354,373
168,225
168,225
168,225
168,225
168,225
Jol. & N. Indiana R R .............................
Jackson, Lanring and Saginaw bond
acct........................................... ...........
....
....
....
8,055
105,000
Land a cco u n ts .......................................................
214,173
125,911
122,036
122,038
Assets in officers h’ ds.............................
75,736
137.069
145,737
152.110
144,551
Bills and accounts...................................
200,444
39,596
68,078
92,753
67,457
T otal..........................- ..................... $15,066,822 $14,781,570 $15,188,190 $16,017,543 $16,029,546
COMMERCIAL CHRONICLE AND REVIEW.
The Loan M a rk et-R a tes o f Loans and Discounts—The Ease in Money—Bonds sold at New
Y ork Stock Exchange Board—Prices o f Government Securities at N ew Y ork —Couise o f
Consols and American Secutitles ar London—Closing Quotations at Regular Board—Move
m ent o f Coin and Bullion at N ew Y ork —Course o f Gold at N ew Y ork —F ore gn E xcharge.
T he ch ie f ch aracteristic o f Ju ne has been an unusual in a ctiv ity o f trade.
T his condition o f things is partially due to the unusual lateness o f the summer
seasou, besides being in the nature o f a react on from the extraordinary stringency
o f m oney during M arch and A p r il.
T he position o f the banks necessitated at
that period the withdrawal o f m ercantile and industrial advances, which natur
ally, for a period , produced a curtailm ent o f operations and a depression o f co n
fidence, the effects o! w hich
w e are now experien cin g.
A t the same t in e ,
business is perhaps m ore than at any firm er time feeling the results o f taxation
in a general econom izin g o f expenditures.
A s usual at periods o f com m ercial stagnation, there has been an extraordinary
ease in the loan m arket.
A lth o u g h , at the com m encem ent o f the m onth, there
was an increase o f several m illions o f currency in the T reasury, yet there has
been a steady flow o f the legal tender circulation into the banks, while the m er
cantile deposits have very m aterially increased.
A lth ou g h the rate o f interest on
demand loans has ranged at 3 @ 4 per cent, and was for a day or tw o even 1 per
cent below that rate, y et the banks have found it necessary, for the em ploym ent
o f th d r large balances, to buy, to an unusual exten t, governm ent securities.
The
follow in g statement will show the present con d ition o f the banks com pared with
their position at the beginning o f J u n e and at the current date in 1867 :
June 27,1868.
Loanp and discounts.....................................................$276,504,6.0
Specie . .........................................................................
7,753,000
Circulation.....................
34.048.000
D e p o s ts .......................................................................... 214,'302.0 K)
Legal Tenders...................................................................
73,853,000
May 30,1868.
$268,117,000
17,SGI,000
34,145,000
204,746,000
65,633,' 00
J line 29, ’ 67.
$242,517,000
7,769,0U0
33,542,0(10
186,213,000
70,174,000
T e fo lo w in g are the rates o f L oans and D iscou n ts for the m onth o f M ay :
RATES OF LOANS AND DISCOUNTS.
C a ll lo a n s .............................................................
Lo a n s on Bonds and M o rtg a g e .. .
A. 1, endorsed b ills , 2 m o s.................
Good endorsed b ills , 3 & 4 m o s . . .
“
“
sin g le n a m e s..
L o w e r g ra d e s ......................................................
June 5.
June 12.
June 19.
June 26.
3 @ 6
7
5 @ 6
7
6 @ 8
@~
3 (a) 4
7
5 @ 6
5 i@ 7
6 @ 8
—
3 @ 4
7
4 i@ 5
6 @ 7
6 @ 8
3 @ 4
7
5 @ 6
6 @ 7
6 @ 8
-
-
COMMERCIAL CHRONICLE AND
1868]
REVIEW.
7o
This extraordinary ease in money, though favorable to special activity in
stock specuhtion, has not been productive o f that result. On the contrary, there
has been an unusual dullness in stock operations. This fact is the more remark
able, considering that the earnings of the railroads have exhibited a large increase,
and that wealthy cliques have for some time been carrying very heavy amounts
o f stocks in anticipation o f an active “ campaign” during the Bummer ease in
money
As will be seen from a subjoined statement, the total sales o f railroad
stocks at both stock boards in June were only 9 7 3,(00 shar: s, against 1 554,000
shares during the same month o f last year. Strong efforts have been made by
the combinations to encourage speculative transactions, and special inducements
have been offered in the way of liberal stock dividends ; but the speculative
habitues of W all street have refused to respond, while the class of merchants who
are apt at this season to employ idle balances in a “ turn” at stocks, have
scarcely been s en in the street. 'I his singular avoidance of speculation is, to
some extent, due to its being understood that stocks were generally in the hands
o f cliques, desirous of unloading upon the “ s t r e e t b u t a more influential cause
appears to have been a feeling o f distrust of railroad stocks, engendered by the
recent exposures in the courts o f corrupt management, and t-y the daily accumu
lating evidence that the roads are managed, to a large extent, with a view7 to the
speculative convenience o f directors.
Moreover, the conviction appears to be
gaining ground, that the intrinsic value o f railroad stocks has not improved, dur
ing late years, at all in proportion to the advance in their market price. The
following statement shows the sales o f the several classes o f stocks at the open
board, and the Mew Y ork Stock Eschange in June, 1868 and 1867.
Classes.
Bank shares .
R ailroad ‘
C oal
‘
M ining
‘
Im prov’ n t 1
Telegraph ‘
Steam ship1
E x p r’ ss& c‘
1S67.
3.584
1,554,112
9,522
36,208
31,535
53,172
76,656
57,941
1868.
1,659
973,064
2,242
30,554
16,775
24,773
82,726
51,321
Increase.
Dec.
1.925
581,048
7,280
5,654
14,760
28,399
6,070
T otal—J an e................................... ....................
1,822,730 1,183,114
“ —since January 1 ............................................ 11,339,859 10,317,619
6,620
639,640
1,022,216
But while speculation has avoided railroad shares, it has been more active
than at any previous period in Government securit'es. The near prospect o f
the completion o f the funding process and o f the consolidat on o f the debt into a
permanent form, have produced a favorable effect upon llie Government cre d it;
while the maturing of unusuiliy heavy interest disbursements at the Treasury in
July, and the falling due o f the loan o f 1848 on J ly 1, have induced the expec
tation o f a large demand for bonds in July. The consequence has been a very
active speculation by both dealers and outside operators, advancing prices to
unprecedented figures. W hile, therefore, there has been a decrease upon June,
' 867, c f 35 per cent on the board sales o f railroad stocks, the transactions in
Governments have amounted to €32,457,000 against §15,137,010 in 1867, aD
increase of 115 per cent, as shown in the following statement—
BONDS SOLD
AT THE
N.
Y . STOCK EXCHANGE BOARD.
Classes.
1867.
U. S. b o n d s ...................................................... $14,042,750
U . S. n o t e s . ......................................................
1,095,350
St’ e & c i t y b ’ d s ..................................................
2,625,950
Company b ’ d s ..................................................
757,000
1868.
In c.
$31,231,870 $17,192,120
1,226,000
180,650
9,610,500
6,984,550
1,050,200
293,200
Dec.
$ .., ...
......
........
.........
Total—J u n e................................................ $18,551,050
“ —since Jan. 1................................... 88,300,730
$43,121,570 $24,600,550
165,015,120
76,744,390
...~
..........
76
c o m m e r c ia l
c h r o n ic l e
and
r e v ie w
[July,
,
The daily closing prices of the principal Government securities at the New
York Stock Exchange Board in the month of June, as represented by the latest
sale officially reported, are shown in the following statement:
PRICES OP GOVERNMENT SECURITIES AT NEW YORK.
Day of
month.
1 ......................
2 .........................
3 .........................
4 ........................
5 ........................
6 ........................
S .......................
9 ........................
10........................
11........................
12 .......................
6’ s, 1.881.—,,
Coup. Reg.
in *
............ n o *
in *
........... 110*
........... 116* n a *
............
116*
............
116*
lii*
in *
13...........................
1 5 ....
...............
10........................... ..............
17...........................
18 ........................ ............
1 17 *
20........................ .............
22 ........................ ............
23 .........................
24........................... .............
117*
20 ........... ............. .............
27.........................
m *
113*
112*
112*
112*
113
113
113*
113*
113*
113*
113*
113*
113*
113*
113*
113*
111*
111*
113*
112*
111*
113*
a*
2*
in *
h w
in *
118
............
117%
F irst.................................
L ow est............ ,.............
H ighest............. ..............
Range ............... ............
Last................... .............
116*
116*
118
1*
117*
30...........................
in *
in *
in *
1862.
112*
112*
11**
112*
112%
112*
112*
112*
112*
112*
111*
in *
113%
113*
113*
113*
113*
—6’ s, (5-20 yrs.) Coupon— -------,5 ’s,10-40 7-30.
1864. 1805. new. 1867. 1868. yrs.C’pn.2d sr.
113*
106% 109*
110* 110* 113
110* 110* 113* 113*
105% 109%
HO* n o * 113* 113*
109*
100
110* n o * 113* 113*
106
109%
110* n o * 113* 113*
109%
106
110* n o *
113*
106* 109*
110* n o * 113
113*
100
109*
109%
n o * 113
113
106
110* n o * 112* 112*
109*
106
110
105* 109%
n o * 112* 112*
109* 110
112* 112*
105% 109*
110*
111.'*
no*
no*
in
110*
111
110*
110*
110*
111*
111*
111*
110*
111
ill
110*
111
110*
111* 114
111* 114*
111* 114*
111* 114
111* 113*
111* 113*
111* 113*
111% 114*
111* 113*
110*- 110*
109% 110
111* 111%
m
1*
no*
113*
113*
113*
113*
in *
113
112*
114*
1*
113*
113*
114
114
114
118*
114
114*
114*
114*
114*
114
100
106* 109*
106* 110
109* 106* n o
109% 106% 109%
109% 106% 109*
114
110
113*
114*
114
110
113*
112*
114*
1*
114
no*
110
109%
109%
no*
*
110
106%
107*
1 07 *
107*
107*
107
107*
107*
106*
105%
107*
1*
107*
no
no
no*
no
no
109%
109*
no*
i*
no
The closing prices of Five-Twentie3 at Frankfort in each week ending with
Thursday, were as follows :
June 4.
77%
June 11.
77%
June 18.
77%
June 25.
77%
Month.
77%@77%
The closing prices of Consols for money and certain American securities
(viz. U. S. 6’s 5-20’s 1862, Illinois Central and Erie shares) at London, on each
day of the month of June are shown in the following statement :
COURSE OP CONSOLS AND AM ERICAN SECURITIES AT LONDON.
Cons Am. securi ties.
for U. S. Ill.C. Erie
mon. 5-20s sh’ s. shs.
Date.
Monday.............
T ues..................
Wedne...............
Thurs................
Friday................
Sat’day...... . ...
Monday.............
Tuesd y ............
Thursday ...
.
Friday................
Sat’ day.............
M on d ay ........
Tus’ day.............
Wednesday........
Thursday..........
Friday ..............
Saturday...........
.. .
2
... 4
.. . 0
.. . 8
...10
...11
...13
...15
...10
...17
...18
...19
...20
90*
96*
96*
95
95*
95*
95*
95*
95*
9b*
95
94*
94*
94*
95
95
(Holi
72*
72*
72*
72*
73*
73*
73*
72*
72*
72%
72%
73*
73%
73
73*
73*
(Holi
day.)
9 1*
97%
97*
97%
98*
100*
100%
101*
100%
100*
1110*
1(10*
100
99*
99*
100^
day.)
46 *
45*
45%
4b*
4b*
46*
460,
46*
40
40
40
46
40
45*
46*
4b*
Cons Am. securities.
for U.S. Ill.C. Erie
mon. 5-20s sh’ s. sh’ s.
Date.
M onday-----T uesday___
Wednesday,
T hu rsday...
Friday . ..
Saturday.. .
M onday___
T u esd a y...
22
23
24
2b
20
27
29
30
95
7 3* 101
9 4 * 73* 101*
91* 7>* n i l *
94* 73* 101*
94% 73* 101*
9 4* 73% 101*
94* 73* n i l *
9 4* 73* 101*
45*
45*
45*
45*
45*
46*
40%
45*
Low est.......
H igh est___
R an ge.........
94*
96*
1*
45*
4 6*
*
Low ) o 1-1.
91* 70* 8 4 * 41%
96* 73* 101* 50%
8*
3 * 16*
4*
94% 73* 101* 4 5 *
Hig^gg.
Last
•
7 2 * 9 7*
73* 101*
1
4*
18C8]
COMMERCIAL
CHROKICLE AND
77
REVIEW.
The following are the closing quotations at the regular board June 5, com
pared with those of the five preceding weeks :
Cum berland C o a l ........................
Q u ick silver ................................. .........................
Canton C o................................................................
M ariposa p r e f ...............................
N ew Y ork C entral.................................................
E r i e ..................................................
H udson R i v e r ................................
R eading............................................
.Michigan S o u th e rn ...............................................
M ichigan C entral........................ .
Cleveland and P it ts b u r g ........... .........................
Cleveland and T o le d o ................. .........................
N o r th w e s te r n .............................. ..........................
“
p referred ........... ..........................
R o c k I s la n d ................... ..............
F o rt W a y n e .................................. ..........................
Illin o is C e n tra l............................ ..........................
Ohio and M is s is s ip p i.................. .......................
......
May 22. May29. June 5.June 12.Junel9. June 20
84
34%
30 K
£0
129
87%
8-*%
26%
51
61X
133#
72%
143%
94%
88
119%
ss%
107 %
109%
66%
rm
68%
109%
1«%
30%
19%
97%
116%
143%
31%
132#
m i
141%
94
89%
119%
86%
108%
68%
81%
102
111
150
20#
25%
50
9%
7%
134 %
183%
70
69%
141% 140
96%
100#
89%
90%
120
89#
S7?«
107%
107%
69# xd65
81% Xd77%
118%
105#
111%
111%
164%
29%
29%
24%
49%
8%
134%
69%
140
104%
92%
90%
103#
09#
79%
105%
112%
156
30%
The following table will s-how the opening, highest, lowest and closing prices
of all tli: railway and miscellaneous securities quoted at the New York Stock
Exchange during the months of May and June, 1868 :
Railroad Stocks—
Alton & Terre H aut............
do
do
pref......
Boston, Hartford & Erie___
Buffalo N. Y. & Erie............
Chicago & A lto n .................
do
do pref— *...
Chicago, Burl. & Quincy
do
& Gt. Eastern.......
do
& Northwest’n ---do
do pref.......
do
& Rock Island......
Cl eve., Col., Cin. & Ind.......
do Painesv. & Ashta.......
do & Pittsburg........ ......
do & T o le d o ..................
Del.. Lack & Western........
do
do scrip..........
Dubuque & Sioux c i t y ......
E r ie ...............................
do pref..........................
Harlem .......................... .
Hannibal & St. Joseph----do
do pref.......
Hudson R iv e r.................... .
Illinois Central..................
Ind. & Cincinnati..............
Mar. & Cincin., 1st pref. ..
do
2d pref.___
Michigan Central — .........
do
S. &N. Ind.........
Mil. & r . du C'h’ n, ls t p r ...
dr.
do
vd pr—
Milwaukee & St. Paul......
tio
do p re f....
Morris & Essex..................
New J e r se y .......................
New York Central.............
do
& N. Haven___
Norwich & Worcester.......
Ohio & Mississippi............
do
do
pref—
Panama .................. ..........
Pittsb., Ft. W . & Chica. ..
Rensselaer & Saratoga.......
Rome & Watertown..........
Toledo, Wab. & Western...
do
do
do pi e l....
---- Mm
/----- — Jun e .------ ------ »
Open. Hieh. ][iOw. Clos’g Open. High. Low. Clos.
...
73
. . . . 128
. . . . 149
....
94%
. . . . 102%
. . . . 82%
49%
73%
15%
43
66
15
127#
128
129% 128
150
149
70
80%
98%
63
75
108%
89
110%
125
117
io2
83%
105#
118%
117
72%
77
93%
68%
74
....
83
7S
83%
...... 84% 87
144
136
.......136#
....... 146% 148% 145%
.......
27
....... 116
....... 90%
.......
........
91#
64%
........
65
........ 129%
....... 160
.......
.......
31%
78
........10-1
....... 90
....... 86%
51%
27
29%
10
20
121
ns
S2#
91%
101
100
97
91%
62
67#
74%
78%
65
65
133
133
120
116
134
127%
150
159
31%
80
330#
116
9 6#
89%
29%
78
315
104
90
86%
52
69
49
69
4S
68%
15%
85
127% 129
128% 130
150% 151
35
63
6S%
79%
80
97
97%
91%
106
108
S8
88%
109
109%
125% 124%
117
78
70
68%
75%
76
127
80
80%
86
87%
142
141%
148
149
53
28% 28%
10
10%
120
120
ss% S9
103
104
98
97
07
66%
77%
78
65
65
133
119% 119#
133% 134
151
161
90
30%
30%
80
79%
330# 329#
116
116
95
95#
90
89%
118
5 1#
51%
69
69
48
70%
15
48
68%
15%
85
133
136
154
37%
72
84%
105%
92
107
91%
110%
124%
48
48
07%
15%
15%
85
85
129
l c8
130
136
154
151
35
37%
65#
'<!%
77%
77%
96% 103%
90%
90%
100% 100#
so
86%
103# 103#
123
123
67
78
78
7S
71%
68
68%
76
75
75
127
122
122
87
80%
35%
91
86
87
143% 138
140#
149
158
157%
53
50
50
29
28#
28%
10
10
10%
121# 117% ns
93#
39%
92
105
103
105
98
98
98
67
62%
65#
79%
76%
78
65
65
65
120
136#
151
92
31%
79%
339
116%
106%
95%
118
51#
09
119% 124#
132% 134
145
145
90
92
29
•29%
79
79
329# 330
109# 109%
93# 101
90
95%
ns
118
46
4S%
69
09
[July,
COMMERCIAL CHRONICLE AND REVIEW .
78
M iscellaneous—
American C o a l........................................
Ashburton do ..........................................
43
3%
43
2
43
3
35%
33
35%
Cumberland C oa l.................................... .
Del. & Hud. Canal Coal............................. 1'8
156# 164
165
95
97
Pacific M a il..............................................
90%
35
34
Atlantic do ...............................................
31%
26
20
.. 21/
21%
20#
Boston W ater i o w e r ............................. .•• 21%
20%
21%
40
52
C a n ton .................... .................................
51%
Cary Im provem ent.....................................
8%
8#
8%
8%
Brunswick C ity........................... . . . . . .
5
6
5
5
M a rip osa ................................................... ..
9%
do
p r e f............................................ .. 10
9%
n%
29
Q uicksilver................................................ .. 27% 32%
27 %
141
144
144
Citizen’ s G as............................................
W est. Union Telegraph....... ..................... 37%
38%
36%
38%
Bankers & Brokers A ss........................... .. 113
113
109% 112%
U nioa T ru st...............................................
120
120
120
E xpress—
f.l
53
53
American................................................... ... 60
.. Cl
56%
63
56%
61%
56
............................................
... 60%
United States
55%
Merchant’ s U n io n .................................... .. 31%
2S
28#
31%
W ells, Fargo & Co.................................... .. 26%
27
22
25%
*50*
*50*
*50*
35%
35%
33%
163% 163% 133
97
103%
95
30
30
30
26%
23#
26#
20%
23
17%
49
51%
51%
50
1-3
134%
99%
30
26#
39
50
*9
5
9%
29%
4
3
6#
22%
8%
22%
38%
38%
111
114%
•33%
106
34%
100
42%
51#
45
24
23%
46#
52#
48
25%
26%
*4
5
8%
29a
53
56#
56
28
25%
54%
5S
56
29
28
4
....
In most respects the specie movement has run closely parallel with that o f June
1867. The month opened with S3,244,000 more gold in the banks than list
year, and the receipts from Cal fornia were S I ,364,o i l larger than theD, while
t e imports of specie and the coin interest payments o f the month were together
§686.000 higher, making a total increase in supply o f So,294,000; but as the
exports o f specie show an increase o 1' S 1,615,000, and the customs payments a
gain of §166,000, it results that the sp.cie in the banks at the close o f the month
is about the same as a year ago.
The following formula furnishes the details o f the general movement o f coin
and bullion at this port for the month o f June, 1867 and 1868, comparatively :
GENERAL MOVEMENT OF COIN AND BULLION AT N E W YO BK .
In banks, near fir s t......................
Keceipts from California..............
Imports of coin and bullion........
Coin interest paid..........................
1S67.
1868.
Increase. Decrease
$14,617,060 $17,861,088 $3,‘744,023 $ .......... ..
2,568,773
3,933,284 1,364,511 ............
407,477
640,923
143,446 ............
1,237,082
1,779,749
542,607 ............
Total reported supply...........
Exports of coin and tuition.......
Customs duties...........................
$18,020,892 $24,215,044 $5,291,652 $
$6,348,529 $10,963,582 $4,615,053 $
8,010,114
8,206,096
165,932
Total withdrawn..................
$14,383,643 $19,169,678 $4,781,035 $
Excess o f reported supply..........
Specie in hanks at end...............
$4,531,749
7,763,096
$5,045,366 $ ............
7,753,300
$293,454
15,696
Derived from unreported sources
$3,237,247
$2,707,934 $ ............
$529,313
It is not easy to find any special reason for the fact that while the result o f the
movement so closely resembles that o f last year, yet the price has ranged about 3
points higher. It is generally conceded that the Government credit stands
higher now than a year ago, o f which the advance in bonds is an evidence; yet
the gold premium ia uo sense reflects this improvement. The largeness o f the
exports o f gold may have had some influence in causing this variation from the
premium o f a year ago ; but from the above statement it will be noticed that
this enlarged export movement is set off by about an equal gain in supply.
The
following exhibits the fluctuations o f the N ew Y o r k geld market in the month
o f June, 1868.
70
JOURNAL OF BANKING, CURRENCY, AND FINANCE.
1868]
! Lowest.
Closing.
3
139ft 139% 139% 139%
139ft 139% 140% 140ft'
140 139ft 440ft 140 ft'
140 140 140ft 140
140 139ft 140 139%
139% 139ft 139ft 139 ft
139 ft 139 ft 139 ft 139ft
139ft 139% 139ft 139ft
139ft 139% 139ft 139 f t
139% 139ft 140 140
140 139ft 140ft 140
140 139% 140 110
140ft 140 140ft 140%
140ft 1140ft 140% 140ft
141ft|140ft 141ft! 140ft
140%! 140 140ft 1140ft
140% 140% 140ft |140ft
140ft 140ft 140ft [140%
fc'c
B
‘ai
Date.
Openi’g
Monday..........
Tuesday.........
W ednesday...
Thursday......
F rid a y ..........
Saturday ......
Monday.........
Tuesday........
Wednesday...
Thursday.
Friday............
Saturday........
M onday.........
Tuesday.........
Wednesday...
Thursday.......
Friday...........
Saturday.......
m
fo
M onday............... .. 22
Tuesday ...............
W edne?day........... ...2 4
Thursday............... ...2 5
F r id a y .................. .. 26
Saturday................ ...2 7
M onday.................
T u esd a y................ ...3 0
140ft
140ft
140 ft
140ft
140%
140%
1J0%
140%
140%
140
14'%
140ft
140
140
140
140ft
June . 1868...........
44
186T...........
“
1866...........
“
1865...........
“
1864...........
41
1863 .........
44
1SG2..................
189%
136 ft
1 407a
138
194
146%
103ft
139%|141V|140%
130 ft 138%|13SK
137% 167% [153%
135% 147% ,141
193 250 147%
140 ft 148% 147ft
103ft 109% 109
S’ ce Jan 1, 1868
133ft 133% 144
[
Date.
Lowest.
COURSE OP GOLD AT NEW YORK.
to
'3
o
Ps
o
m
Tc
C
140% 140%
140% 140ft
140ft 140%
140% 1140%
140% 140%
140% 1140ft
140% 140%
140% 140%
130%
Foreign exchange has been kept firm at specie shipping rates, as usual at this
period o f the year, when the supply o f commercial bills provis inadequate to cover
the remittances o f importers.
The following exhibits the quotations at N ew Y ork for bankers’ 60 days bills
on the principal European markets daily in the month of June, 1888 :
COURSE OP FOREIGN EXCHANGE (6 0 D AYS) A T NEW YORK.
London.
cents for
54 pence.
Days.
1
............
2
..........................
3 . . ............................
4
..........................
5
..........................
6
..........................
8
..........................
9
..........................
10 ..........................
11 ...............................
12. ...........................
13..............
15 .............................
16 .............................
17 ..........................
18 ..........................
19 .........................
20 .........................
22 ..........................
23 ..........................
24 ..........................
25 .............................
20...............................
27...............................
29 ..........................
30 ..........................
Paris.
centim es
for dollar.
Amsterdam. Bremen. Hamburg.
cents for
florin.
iioft@iio% 5m@5i2>i( 4 i % @ 4 i %
110ft@110%
110ft© U 0ft
U 0ft@ 110%
110ft@110%
n 0 ft@ 1 1 0 ft
110ft@110%
110ft@110%
110ft@110%
H0ft@ 110%
110 @110ft
110 @ U 0f t
Ill) ®110ft
110 © l l l i ft
HO ©110ft
HO ©110ft
lio
@110ft
110 ©110ft
HO ©110ft
HO ©110ft
HO © l l t 'ft
HO (tollOft
110 ©110ft
110 ©110ft
110 ©110ft
110ft®110ft
51S «® 512ft
6 18 K 05 1 2 *
513ft@J12ft
513ft@512ft
513ft@512ft
5 1 8 *@ 5 1 2 #
513ft@512ft
513ft@512ft
513ft@512ft
513ft@512ft
513%@512ft
41ft@ 41ft
41)4@41 ft
41ft@ 41ft
41ft @41f t
41ft@ 41ft
41 ft@41f t
41 ft @41 f t
41ft@ 41ft
41ft@ 41ft
cents for cents for
r ix daler. M. banco.
79% @ so
W X ® S0
.7»ft®80
79%@80
79%@80
79%@80
79ft@80
79%@80
79ft@80
79ft@80
79ft@79%
Berlin.
cents for
thaler.
36ft@3G% 7i%@72
36ft@36ft'
3 6 « ® 8 6 ft
36ft@ 36ft
36ft@36%
36ft@ 36ft
3 :ft@ 3 6 ft
86ft@ 36ft
86 ft @ 8 6 *
36ft@ 36ft
36ft@36%
71 f t @72
7 1 ft© »
71ft@ ?2
71ft@72
71ft@72
71 f t <§>72
7 !ft@ 7 2
71ft@72
71ft@72
71ft©72
41 ft©41ft 79ft© 7 6 ft 86ft®86ft 71ft@72
513ft@512ft 41 ft@ 4 l f t
613ft@512ft 41 ft©41 ft
513ft@512ft 41ft@ 41ft
513%@512ft 41ft@ 41ft
513ft@512ft 41ft@ 41ft
513%@512ft 41 ft © 4 1 ft
518ft®512ft 41ft@ 41ft
513ft@512ft 41ft@ 41ft
513%@512ft 41ft@ 41ft
618ft®812ft 41ft@ 41ft
518ft®512ft 41ft@ 41ft
513ft@512ft 41ft@ 41ft
618ft®512ft 4 1 ft0 4 1 ft
513ft©512ft 41ft@ 41ft
79ft@79%
7»ft© 7Bft
79ft@ 79ft
79ft@79%
79ft®79%
79ft@ 79ft
79ft@79%
79ft@ 79ft
79ft@ 79ft
79ft@79%
79ft@ 79ft
79ft@79%
79ft®79%
79ft@79%
8 ffft© 8tft
86ft@ 86ft
86ft@ 36ft
36ft@ 36ft
36ft@36%
3«ft@ S 6ft
36ft@ 36ft
88ft®8Hft
86ft® 36ft
36ft@ 36ft
86ft © 3 6 *
86ft@ 86ft
86ft@ 86ft
30ft@36%
71ft@72
71ft@72
71ft@72
71ft@72
71ft@72
71ft@72
71ft@72
71ft©72
71ft@72
71ft@72
71ft@72
71ft®>72
7 1 «® 7 2
71ft©72
June, 1 8 6 8 )......... 110 ©110ft 513ft@512ft 41ft@41ft 79ft@80
36ft@3fift 71ft@72
“
1867 .............. 109ft@110ft 518ft@511ft 40ft@41ft 78ft@79ft 36 @36ft 72 @72ft
JOURNAL OF BANKING, CURRENCY, AND FINANCE.
Beturns o f the New York, Philadelphia and Boston Banks-
Below we give the returns of the Banks o f the three cities since Jan. 1 :
Date.
Loans.
January 4 ..- $243,711,297
January 11,
251,170,723
January 18 .. 256,033,938
January23 .. . 258,392,101
February 1 ... 266,415,613
NEW YORK CITY BANK RETURNS.
Specie.
Circulation.
Deposits.
$12,724,614 $34,134,391 $187,070,786
19,222,856
34,094,137
194,835,525
23,191.867
34,011,006
205,883 143
25,106,800
34,082,762
210,093,084
23,955,320
44,062,521
213,330,524
L. Tend’s. Ag. clear’ cs
$62,111,201 $483,266,304
64,753,116 553,884,525
66,155,241 619.797.369
67,154,161 528,503 223
65,197,153 637,449,923
80
JOURNAL OF BANKING, CURRENCY, AND FINANCE.
Date.
Loans.
February 8 . . . £70,555,356
February 1 5 ... 271,015,970
February 2 1 ... 267,763,643
February 29 . . 267,240,678
March 7 ......... 269,156,636
March 14.......... 266,816,034
March 21.......... 261,476,900
March 28
..257,378,247
254,287,891
April 4.
252,936,725
April 11..
254,817,936
April 18..
252,314,617
A pril 25..
257,623,672
May 2 ..
265,755,883
May 9.
May 16........... 267,724,783
May 23........... 267,381,279
8,117,490
May 30.
273,792,367
June 6.
■fune 13........... 275,142,024
June 20 .......... 274,117,608
June 27........... 276,504,'36
Specie.
Circulation.
22.523.372
34,096,834
24,192,955
34,043,296
22,513,9S7
34,100,023
22,091,642
34,0-6,223
20,714,2*3
34,153 957
19,744,701
34,218,381
17.944.308
34,212,571
17,323,367
34.190,808
17,077,299
34,227,108
16,343,150
34.194,272
16,776,542
34,218,581
14,943,547
34,227,624
16.166.373
34,114,843
21 286,910
34.205,409
20,939,142
34,193,249
20,479,947
34.183.(-38
17,861,088
34,145.606
14,328,531
34,188.159
31.193,631
34,166,846
9,124,830
34,119,120
7,753,800
34,048,721
[July,
Deposits. Legal Tend’ s, A g.clear’ gs.
217,844,518
55,846,259
597.242.595
216,759,828
63,471,762
550,521,185
209,095,351
60,868,930
452.421.592
208,651,578
58,553,607
705,103 784
207,737,080
57,017,044
619.219.595
201,188,470
54,738,806
691,277,641
191,191,526
52,261,086
649,482,341
186,525,128
52.123,078
557.843.908
280,956,846
51,709,706
567,783,138
179,851,880
51,9S2,609
493,371,451
181,832,523
50,833,660
623,713,923
180,307,489
53,866,757
812,784,1c 4
191.206,135
57,863,599
588.717.592
199,276,568
57,541,827
507,028,567
201,313,305
57,613,095
480.186.908
202,507.550
488,735,142
20^,746,964
65,633,964 . 002,11S,24S
209,089,655
68,822,028
640,663,329
210,670,765
69,202. S40
530,32S,197
211,484,387
72,567,582
553,983,S17
214,302,207
516,726,075
73,S53,303
PHILADELPHIA BANK RETURNS.
Legal Tenders.
Date.
January 4 .........
January I t ........
January 18.........
January 25.........
February 1 ......... ........... 17,064,18 r
February 8 .........
February 15.. .. ........... 16,94^,944
February 22......... ........... 17,573,149
February 29 . .. ........... 17,877,877
March <............... ........... 17,157,954
March 14............... ........... 16,662,299
March 21 ............. ........... 15,664.946
March 28............... ........... 14,348,391
A pril 4 ............. ........... 13,21-8,625
April H ..
■ •........... 14,194.385
April 20............... ........... 14,493,281
April 27 . ........ ........... 14,951.106
May
4 ............... ........... 14,990,831
May 11................ ........... 15.166,017
May 18................ ........... 15,381,545
May 25............... ........... 15,823,099
June 1 ........................... 16,184,S65
June 8 ........................... 16,078,308
June 10 ..............
June 22............... ........... 15,993,145
June 29................
Loans.
$52,00-',304
52,593,707
53,013,196
52,325,599
52,604,91g
52.672,448
52,532,946
52,423,166
52,459,757
53,081,665
53.367.611
53,677,337
53,450,878
52.209,234
52,256,949
52,0S9,7S0
52,812.6-3
53,333,740
53,771,794
53.49 4,5S3
53/63,225
53,562,449
53,491 364
53,122,521
58,381,820
53,072,878
Specie.
$235,912
400,815
320,973
279,393
248,673
287,878
263,157
204,929
211,365
232,180
251,051
229,518
192 858
215.835
250,240
222, 29
204,699
314,366
397,7TS
3-3,525
280,302
239,371
226,581
175,303
182.711
198,563
Circulation.
$10,639,000
10,639,096
10,641,752
10,645,226
10,638,927
10,635‘ 926
10,663,328
10,632,495
10,6:44,484
10.633,713
10,631,399
10,643.613
10,643,606
10.642,670
10.640,932
10.640,479
10,640,312
10,631,044
10,629,0 5
10,632,665
10,661,276
10,626,937
10,630 945
10,630,979
10,631,220
10,630,307
D eposits.
$36,621,274
37,131,830
37,457,089
37,312,540
87,922,287
37 396,653
37.010,520
36,453,464
35,798,314
34.826.561
94,523,550
33,836,996
32,428,390
31.278.119
32,255,671
33,950,952
34,767, <90
35,109.937
3-5.017,596
36,030,063
36,000,297
36,574.457
42,910,499
43,01G,968
43.243.562
43,936,629
BOSTON BANK RETURNS.
(Capital Jan. 1, 1866, $41,900,000.)
Legal
Specie.
Loans.
Tenders.
D eposits.
Date.
, $34,960,249 $1,466,246 $15,543,169 $40,856,022
January 3 .
97,800,239
1,276,987
15,560,965
41,496,320
January 13 .
926,942
15,832.769
41,904,161
January 20 ............. 97,433,463
811,196
January 27 ............. 97,433,435
16,349,637
43,991,170
777,627
16,738,229
February 3 ............. 96,895,260
42,891.12S
652,939
February 1 0 ............. 97,973,916
16,497,643
42,752,067
605,140
16.50141
February 17 ............. 98,218,828
41 502,550
616,953
February 24 ............. 97,469,436
16,309,501
40,387,614
633,S32
March 2.................... 100,243,692
16,304,846
40,954,936
867,174
March 9.................... 101,^59,361
39,770,418
918.485
March 16...................... 101,499,611
14,5^2,342
39,276,514
798,606
March 23.................... 100,109,595
13,712,560
37,022,546
685, (’34
13,736,032
36,1S4,040
March 30.................... 99,132,268
731,510
13,004,924
30,008,157
April 6.................... 97.020,925
873,487
12,522,035
April 13.................... 97,8o0,230
36,422,929
805.486
11,905,603
36,417,890
April 20.................... 98,906,895
577,- 63
12,298,545
36,259,046
April 27.................... 98,002,343
815,469
May
4 .................... 97,624,197
12,656,190
37,635,406
1,133,668
May 11.................... 97,332,283
11,962,368
37,358,776
1,186,881
12,199,422
May IS.................... 96,938,524
37,S44,742
1,018,809
12,S4S,141
May 25.................... 97,041,720
38,398,141
766,553
June 1.................... 97,458,997
14,188,806
40,311,569
631,149
June 8 .................... 9S 116,632
14,368,900
41,470,376
561,990
June 15.................... 99,513,9S8
14,373,575
41,738,706
410,433
June 22 .................... 99,389.63.*
14,564,614
42,553,871
June *9 .................. 99,477,074
15,195,550
42,506,316
National.
State.
$24,636,559 $228,730
24,757,965
227.953
24,700,001
217,372
14,564,906
226,258
24,628,103
221,£60
24.850,926
221,700
24,850,055
220,452
24,686,212
216,490
24,876,089
2 5,214
24,9S7,700
210,162
25,062,418
197,720
25,094,253
197.289
24,983,417
197,079
25,175,194
168,023
24,213,014
167,013
24,231,058
166,962
164,331
25,231,978
25.203.234
160,385
25,225,173
145,248
25.234
465 760,241
160,151
25,210,600
25,204,939
159,560
25,194,114
159,313
25,190,565
159.150
158,908
25.197,317
25,182,920
15S,81'2
@FedFRASER