Full text of The Merchants' Magazine and Commercial Review : June 1867, Vol. LVI, No. VI

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MERCHANTS’ MAGAZINE
AND

COMMERCIAL REVIEW.

J U N E ,

1867.

MILWAUKEE, WISC.
Milwaukee is the largest and most important city o f the State of W is­
consin. It is located on the river of the same name, or, more properly,
partly on the river and partly on the bluffs overlooking Lake Michigan,
lat, 43° 02' 34" north, and long. 87° 54' 22" west, about 85 miles north
from Chicago. The district o f which it is the port of entry embraces the
whole Wisconsin shore of the Lake, and includes the sub-ports of Kenosha
and Eacine southward, and Port Washington and Sheboygan north­
ward.
This city was founded in 1835, and was incorporated in 1846. The
progress of the city and State in population, in the twenty-five years
(1845-65) is thus marked by successive enumerations:
i—-----Population-----—\
State.
City.
Census.
30,945
1S40.........
1S45.........
155,277
305,891
1S50____
552,451
1S55......... . . 30,447
775,881
I86 0......... . . 45,246
1S65......... . . 55,641
868,937

City to
Stats,
5,5 per cent.
6.2 “ “
6.5 “ “
5.5 “ “
5.8 “ “
6.4 “ “

Census
Years.
1 8 4 0 -4 5 ...
1 8 4 5 -5 0 ...
1 8 5 0 -5 5 ...
1 8 5 5 -6 0 ...
1 8 6 0 -6 5 ...

r-Rate of increase—
City.
State.

51.5

401.8
97.0
80.6
40.4
12.1

The city and its external relations are thus depicted by the editor of
the Eighth Annual Eeport of the Milwaukee Chamber of Commerce:
“ Milwaukee is very favorably located for commercial purposes, and its
natural advantages were recognized at an early day as likely to place it
VOL. LVI. n o . vi.
20




410

,

Milwaukee, 171500X8111.

[June,

among the foremost of the inland cities of the continent. Its career dur­
ing the last fifteen or twenty years shows that this expectation was by no
means a “ baseless” one, and justifies the belief that even those reckoned
among the “ oldest inhabitants ” may live to see its full realization. Situ­
ated on the western shore of Lake Michigan, about eighty five miles from
the head of that magnificent inland sea, and possessing a harbour un­
equalled on the whole chain of lakes, it seems to have been designed by
nature as the great receiving point for the surplus products of that vast
domain composing Wisconsin, Northern Iowa and Minnesota, as well as
the general distributing point for the eastern and foreign merchandise re­
quired to supply the rapidly increasing population of all that productive
and flourishing section of country. The Milwaukee and Menomonee rivers
flow through the city, affording a river front o f almost unlimited extent,
and uniting in the heart of the city, form a harbor capable o f accommo­
dating a fleet of two thousand vessels of the largest class. The entrance
to the harbor is protected by two parallel piers extending out into deep
water, and securing a permanent channel-way 260 feet wide and 12 feet
deep in its shallowest part. The Milwaukee river is damned about three
miles from its mouth, furnishing a good water-power, upon which the man­
ufacture of flour is extensively carried on.”
The railroads at present terminating in Milwaukee are:
1st. The Milwaukee and St. P aul Railway, running in a northwesterly
direction through Columbus and Portage City to La Crosse, on the Upper
Mississippi, a distance of two hundred miles from Milwaukee. This road,
or a branch road connected with it, will, without doubt, be extended, with­
in the next year, or two at most, to Winona, Minn., thus bringing the ex­
tensive railroad system ratiating from that thriving city into direct com­
munication with Milwaukee. The Winona and St. Peter Railroad, which
must necessarily form one of the most important feeders of the Milwaukee
and St. Paul Railway, is already in operation, 91 miles due west of W in­
ona. To Owatonna, where it connects with the Minnesota Central Rail­
road, establishing an unbroken line of railroad between Milwaukee and St.
Paul. The old Milwaukee and Horicon Railroad, extending to Berlin on
the Fox river, forty-two miles long, together with the Ripon and W olf
River Road, running from Ripon to the W olf river, are now branches of
the Milwaukee and St. Paul Railway, owned and operated by the same
company. The Chicago and Northwestern Railroad, intersecting the Mil­
waukee and St. Paul Railway at Watertown Junction, and extending
through Fond du Lac and Oshkosh to Green Bay, is also an important
feecer to the same trunk line, but in consequence of the hostility of the
management of the Northwestern Road to Milwaukee, much of the trade
from the portions of the State through which it passes, that would natur­
ally come to this city, is forcibly diverted to a more distant and inferior
market.
2d. The Milwaukee and Prairie du Cliien Railway, running through
the most populous and productive portion o f the State, from Milwaukee
to Prairie du Chien, on the Mississippi river, 196 miles, with a branch
extending 40 miles in a southwesterly direction from Milton, through
Janesville to Monroe, in Green County, 110 miles from Milwaukee. As
soon as the Company shall have completed the McGregor Western Road
so as to secure direct connection with the Minnesota Central, they will no




1867]

MILWAUKEE, WISCONSIN".

411

doubt give their attention to the extension of their southern branch, from
Monroe to Missippi at Dubuque, which will establish their connection with
the extensive system of railroads running into Iowa from that point. The
McGregor Western Railway,'alluded to above, has been leased for a long
term of years by the Milwaukee and Prairie du Chien Railway Company,
who are vigorously pushing it through to completion, the intention being
to extend it to the north line o f the State o f Iowa so as to connect with
the Minnesota Central from St. Paul. This road is already in operation
a distance o f 66 miles from McGregor, and preparations are in progress
to bridge the Mississippi between the latter place and Prairie du Chien
during the present season.
3d. The Milwaukee and Minnesota Railroad, running in a northwest­
erly direction to Portage City, about midway between Milwaukee to La
Crosse. This was formerly known as the Eastern Division o f the old La
Crosse and Milwaukee Railroad, and until quite recently was operated as
part of the Milwaukee and St. Paul Railway. The Western Division of
the old La Crosse and Milwaukee Road is owned by the Mil waukee and
St. Paul Railway Company, who, by purchasing the Milwaukee and W est­
ern Railroad, and building 40 miles of new road between Columbus and
Portage City, secured a through and direct line o f their own to La Crosse,
and leaving the Eastern Division for the present without an outlet to the
Mississippi. The protracted litigation for the possession o f this road was
terminated a year ago in favor of the Milwaukee and Minnesota Railroad
Company, who are now operating it between Milwaukee and Portage
City. The Milwaukee and Minnesota Railroad connects with the North­
western Railroad at Minnesota Junction, running to Fond du Lac, Oshkosh
and Green Bay.
4th. The Chicago and Milwaukee Railway, running along the lake
shore from Milwaukee to Chicago, 85 miles, and connecting with the num­
erous lines of railway at that point running east, south and wTest. Twenty
miles from Milwaukee, this road intersects the Western Union Railroad,
running through Southwestern Wisconsin and Northern Illinois to Savan­
na, on the Mississippi River, 165 miles from Milwaukee, thus forming the
shortest line between Lake Michigan and the Mississippi. It is proposed
to establish more direct means of communication with this part o f the
country by building, the coming summer, an air line of railroad from Mil­
waukee to Burlington, in Racine County, a distance o f 60 miles.
It will be seen by the foregoing that the network of railroads centering
at Milwaukee is being gradually but steadily extended and perfected, so
that within a very few years the number of miles of railroad tributary to
our city will be doubled and our commerce increased in the same or a
larger proportion.
In addition to the Chicago and Milwaukee Railway, we have, by means
of the Detroit and Milwaukee Railroad and Steamship Line across Lake
Michigan, a direct Eastern communication with the Canadian railways
and those of New England and New York. This route is available for the
transportation of freight during at least ten months of the year, and dur­
ing the summer season the trip across the lake, in splendid steamships
built expressly for the line, forms a pleasant break in the monotony of a
railroad journey between the East and West.
The grain trade of Milwaukee has grown up with amazing rapidity, and




412

[June,

MILWAUKEE. WISCONSIN,

is destined to make the port one of the most famous breadstuff entreports
o f the Union. The whole of Wisconsin and Minnesota is tributary to it,
and as these become further developed, the business of the city must nat­
urally be increased. In 1845 its whole export of flour was only 7,550
barrels; in 1866 it exported 720,365 barrels, being nearly a hundred to
every one twenty-two years ago. Its wheat trade has grown more rapidly :
in 1845 the whole export was 95,510 bushels— in 1866, 11,634,749
bushels; and in 1862 it amounted to 14,915,680 bushels. The trade in
other grains has moved disproportionately and irregularly, but, on the
whole, is considerable.
In order to show the localities from which Milwaukee draws its principal
supplies of flour and grain, and what disposition is made o f them, we give
the following table showing the receipts and exports for the year 1866 :
Flour,
bbls.
Received by—
Mil. & P. du Chien R .R .......... 112,469
Mil. & St Paul R .R .................. 185,380
13,869
>1or. Div. Mil. & St. P. R .R ...
Mil. & Minn. R .R ....... .......... 111,283
7.2S8
Chic. & N W. R .R ..................
L a k e .........................................., 27,805
3C,000
Teams.................................—

Barley,
Oats,
Corn,
Rye,
Wheat,
bush.
bush.
bush.
bush.
bush.
32,325
411,543
178,626
1,032.361
5,161,549
33,098
21,953
19,752
21,553
4,769,857
231,750
25,886
2,098
648
1,637
1,161,981
42,726
991,251
739,578
331,246
180,194
32,u07
10,095
24,090
710
177,662
Unku’
n.
Unkn?n.
2S3,557 Unknown. Unknown.
125,696
15,102

Total receipts................. 488,094
In store Jan. 1, 18(56 ...............
7,939
. 328,730

12,777,557
852,237

1,817,230
107,789

7S9,0S0
7,062

383,030
10,528

Total supply.................... , 824,763
Flour,
bbls.
Shipped to—
Buffalo...................................... 217,405
Oswego...................................
Ogden sburg............. .............. 49,336

13,629,794

1,925,019

796,142

393,558

167,798

Wheat,
hush.
5,398,111
2,455,499
674,882
1,075,014
175,960
48,643
123,875
91,S00

Oats,
bush.
1,465,375
42,367
2,594

Corn,
hush.
350.601
30,515
5C0

Rye,
bush.
201,609
50,600

Barley,
bush.
7,672

51,093
34,712
20,250

7.287
28,350
12,894

1,443

1,040
276

Lake Superior.........................
Oilier U. S. ports......................
Sarnia.......................... .............

6,592
32,312
87,932
295

By Chic. & N W. R.R ........... 242,681
By Detroit & Mil. R .R .......... 83,812

8S,584
69,075
442,142
155,640
78,166
695,188
63,170

Total shipments............... 720,365
Consu’d & on hand Dec. 31, 66. 104,44S
Wheat ground by city m ills...
Wheat in store Dec. 31, ’6 6 ....

11,634,749

Grand total.................... 824,703

13,629,794

1,643,650
351,395

26,600
3,506
16,798

29^661

1,000
677

7,050
2,950

1,636,695
288,324

480,408
315,734

255,329
138,229

18,988
148,810

1,925,019

796,142

393,558

167,798

The two following tables show the total movement of flour and grain
fen- a series of nine years :
RECEIPTS OF FLOUR .AND GRAIN 1858-1866.
Flour,
bbls.
1 8 5 8 ....
1859-----1860-----18 6 1 -----18 62____
18 63____
1 8 6 4 ....
I 860____
1866 . . . .

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

239,952

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

529,600
453,424
295,225
389,771
488,094




Wheat,
bushels.
4,876,177
5,459,927
9,108,458
15,730,706
15,613,995
13,485,419
9,147,274
12,043,659
12,777,557

Oats,
bushels.
6 S ’ ,470
360.912
178,963
151,346
282,756
948,429
1,055,844
657,492
1,817,230

Corn,
bushels.
107,948
156,341
126,494
114,931
25S.954
358,450
460,575
270,754
789,080

Barley,
bushels.
159,576
123.S84
159,795
66,991
149,997
199,469
198,325
149,443
152,696

Rye.
bushels.
21,656
32,733
32,382
73,448
154,476
158,882
88,541
134,360
383,030

1867J

413

MILWAUKEE, WISCONSIN,

The quantity of flour made at the city mills during each of the last
eight years was as follows :
In 1859.................
1S60.................
1861 ...............
1862.................

In 1 8 6 3 ...
1 8 6 4 ...
1865 . .
1 8 6 6 ...

1857.....................
1858.....................
1859.....................
1860.....................
1861.....................
1862.....................
1863.....................
1864.....................
1865.....................
1866.....................

228,442
298,688
282,956
457,343
6,74,474
711,405
603,526
414,833
567,676
720,365

187,339

..

328,730

i
U
U

1857-1866.

EXPORTS OF FLOUR AND G RAIN

Flour,
bbls.

..

Wheat,
bushe s.

Oats,
bushels.

Corn,
busheis.

2,581,311
3,994,213
4,732,957
7,568,608
13,300,495
14,915,680
12,837,620
8,992.479
10,479,777
11,634,749

2,775
562,067
299,002
64,682
1,200
79,004
831.600
811.634
326,472
1,636,695

474
43,958
41,364
37,204
1,485
9,489
88,989
146,786
71,203
480,408

Barley,
bushels.

800
63,178
53,216
28,056
5,220
44,800
133,440
23,479
29,697
18,988

Rye,
bushels.

.

5.378
11,677
9,735
29,810
126,301
84,047
18,210
51,444
255,S29

The following table shows the amount of flour and grain in store on the
1st of January, for eight years :
1867.
Flour, Uhls....... 15,690
Wheat, bush... 351,395
Oats, bush....... 44,832
Corn, bush....... 12,940
Rye, bush........ 12,785
Barley, bush...
839

1866.
7,939
852,237
107,789
7,062
10,528
15,102

1805.
12,349
352,500
81.700
5,400

1864.
28,519
1,134,400
87,500

1863.
35,000
1,411,601

1862.
1860.
1861.
43,000
41,357 18,296
1,820,931 64S,000 314,000

21,300

The beef and pork business o f Milwaukee, though second to the flour
and grain trade, is still important, and a distinguishing feature in the gen­
eral trade of the city. The receipts o f hogs for eight seasons, with the
average and total weight dressed may be seen in the annexed statement:
In season o f 1 8 5 8 -5 9 ..........
do
1 8 5 9 -6 0 ............
do
1 8 6 0 -6 1 ...........
do
1861-6 2...........
do
18 62-6 3...........
do
1 8 6 3 -6 4 ...........
1 8 6 4 -6 5 ...........
do
do
1 8 6 5 -6 6 ...........
✓

Number o f Av. wet.,
hogs.
pounds.
225*
m $
238f
200
219
202
196$
232$

Total weight, Price of dress­
pounds.
ed hogs.
7,228,497
10,001,434
5 0 0 @ 6 55
14,350,788
19,892.200
2 5 0 @ 3 50
29,958,885
3 5 0 @ 5 25
28,500,382
5 5 0 @ 8 25
21,108,934
12 00(2)15 25
21,589,252
9 00(311 35

The results o f pork-packing in the city for the last four seasons was as
follows:
1S62-63,

Number of hogs...............................
Average net weight.......................
Lard, pounds.................................
do to each h o g .........................
Pork, clear, bbls.............................
do mess d o .............................
do prime d o .............................
do extra prime, bbls.................
do rumps
do .................
Middles, Cumberlands, boxes.. . .
do
short rib
do ___
Shoulders, dry salted, lbs.............
Hams, sweet pickled, tes..............
do
do
bbls...........




1883-64.
1864-65.
1S65-G6.
141,091
107,229
88,853
202
196$
232$
3,791,485 2,514,812 2,954,779
27$
23$
8 3$
1,065
2,943
1,350
33,794
20,275
88,393
17,114
18,710
1,170
8,464
8,361
5,648
....
248
1,923
1,543
733
330
....
2,049,622
....
8,228
....
....
1,205

414

MILWAUKEE. W ISCONSIN.

The number of cattle, calves, hogs and sheep slaughtered in the three
years 1863-65, inclusive, according to the U. S. Assessors’ return, was as
follows:
Beef Cattle.

In 1863................................................
1864 ............................................
1865 ............................................

Calves.

25,170
26,471
13,988

Hogs.

Sheep.

58,829
48,155
7,939

6,217
8,140
12,375

5,021
6,843
4,937

The receipts of cattle and general returns of beef packing for fouryearsi
as given in the report o f the Chamber o f Commerce were as follows :
1862.
Receipts o f cattle.......................
Cattle slaughtered........................
Beef packed................................. .

»<

13,876
25,275
2,940

(4

Tallow............................................

1863.
25,170
18,224
31,365
10,145
1,024,920

1864.
26,471
18,078
35,274
4,030
540,540

1865.
20,177
11,360
9,629
10,142
753,044

The returns for 1865 are defective, and as to the number o f cattle
slaughtered the Commercial, as compared with the Assessor’s report is
short by 2,628 head.
The total shipments of provisions from Milwaukee for the same years
are shown in the following :
—Pork—
Tea.
12,965
00,387
15,811
67,933
5,927
2,713
Bbls.

1862..........
18153.......... .......
1S64.......... .......
1SG5..........

-------- Beef
/------- Lai*d------- » ,— Tallow— x
Bbls.
Bbls. Hhds,
Tea.
Bbls.
Tcs.
33,174
13,538
6,751
4,750
3,217
42,987
6,377
10,987 10.546
4,928
250
11,634
36,866
5,871
7,-07
5,257
249
6,557
5,528
5,000
10,427
1,929
2,487
927
43

Boxes.

The following table shows the equivalent in barrels of pork and beef
products exported in fifteen years :
1851.........
1852........ ...
1853.......
1854......... .. .
1855......... ...

Pork,
bbls.
3,877
23,861
7,226
26,897
33,047

Beef,
bbls.
2,441
7,843
4,371
6,018
236

1856......... ...
1857........
1858........
1859........ ...
1860........ .. .

Pork,
bbls.
11,742
8,864
31,661
2S,019

Beef,
bbls.
2,399
3,754
12,132
14.371
21,390

1861.......
1862.......
1863.......
1864.......
1865.......

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

Pork,
bbls.
47,428
69,099
122,(09
100,963
48,707

Beef,
bbl9.
18,665
37,993
52,552
44,672
18,719

The receipts and shipments o f butter, wool and hides for seven years
are shown in the annexed :
,------- Butter, lbs------- , ,--------Wool, lbs—-----, ,--------Hides--------,
Keceived. Shipped. Received. Shipped.
Received Shipped.

1859................................
545,658 504,574 492,259
713,552
.1860................................
889,025
814,360 485,714
669,375
1861 .............................
484,358
637,706 732,706 1,000,225
1862 ............................. 1,068,967 1,238,406 1,149,772 1,314.210
1863 .............................
852,596
986,826
1,355,379
1864 ............................. 1,386,317 1,749,755 1,957,601 1,993,372
1865 ............................. 1,200,381 1,263,740 1,787,268 2,277,850

......................
85,409 32,941
69,743 17,991
128,168 32,042
110,849 21,807
144,334 44,961
134,019 31,449

The receipts of hides includes hides taken off by city butchers and
packers which numbered for the six years above given 12,873,12,306,
17,876, 21,381, 26,47), and 18,925 respectively. The difference between
the receipts and shipments gives the number of hides tanned or on hand
at the end of the year. The shipments of leather in 1864 was 8,726 rolls,
and in 1865, 8,993 rolls.
The Lumber Trade of Milwaukee is extensive, but by no means as large
and regular as it otherwise would become had the city more direct com­
munication with the consuming regions of Illinois and Iowa. Such a




\

415

MILWAUKEE, W ISCONSIN.

communication, however, is about to be made in the construction o f a rail­
road from the city to a junction with the Western Union Railroad, which
traverses Northern Illinois to the Mississippi l iver, and it is estimated by
those qualified to judge that this will increase the trade a hundred per
cent within a year after its completion. The following table shows the
receipts for ten years :
1856... .
1857... ..
1858... .
1859... ..
1800...

Lumber, It. Shingles, No.
63,493.000
11,829,000
71,035,000
21,531,000
45,525,000
17,569,000
32,047,000
13,814,000
12,871,000

Lath, ft.
5,20 ',000
9,570,000
6,219,000
3,108,000
2,899,000

Lumber, ft. Shingles. No.
19,601.000
1861... .. 5*i 534,000
1862... . as,S5s,ooo
13,385,000
1863. . .. 30,158,114
7,971,000
1S64...
3,327,000
1865... . 42,055,773
2,589,000

Lath, ft.
2,823,000
3,950,000
1,373,0)0
2,<'38,000
3,525,000

The falling off in the lumber trade since 1856 and 1857, in which years
it received its highest development, has been owing to the completion of
the Chicago and Northwestern Railroad to the lumber region. By this
line the lumber formerly carried into Milwaukee, and thence by water into
Chicago, is now carried directly to the latter port.
The principal receipts of Eastern merchandise by lake and the Detroit
and Milwaukee Railway steamers for these years are shown in the follow­
ing statement:
1863.
Apples, bbls........... 69,910
Coffee, sacks......... 7,801
42,315
Coal, tons.......
Dried apples, bills. 4,002
“
sacks.
Fish, pkgs.........
24,252
Hardware, pkgs
33,000
Iron, bars..........
57,935
u bdls..........
50,422
Molasses, bbls...
9,045
140
"
hhds ..
Nails, kegs........
50,783

1864.
51,264
5,406
44,503
2,046
193
25,444
23.327
45,209
29,391
5,501
156
35,574

1865.
88,606
9,575
33,369
1,390
423
40,589
43,601
43,146
32,361
9,135
40
37,358

1863.
Oil, bbls............. . 8,757
casks ..........
Sugar, bbls.......... .. 33,999
u hhds........ . 2,565
546
boxes.......
Salt b b ls ............ ..177,024
“ sacks ..........
it t o n s ............
Stoves, N o .........
Tea ch ests........ .. 11,095
Tin plates, b x s.. . 7,850

1804.
7,949
146
19,509
1,133
326
119,102
1,753

1865.
14,946
173
33,530
2,554
038
130,0G1
100

30,096
7,497
1,509

36,498
11,108
3,002

The total amount o f Eastern merchandise, exclusive of coal, railroad
iron and plaster, received in 1865, was 50,444 tons, of which 36,390 tons
arrived by lake and 14,054 tons by the Detroit and Milwaukee Railroad.
A very considerable amount was also received by the Chicago and Mil­
waukee Railroad, of which no account is recorded.
From the records of the Custom House it appears that the total value of
articles imported directly from foreign countries in 1865 was $160,806,
and the value of produce exported to foreign countries, mostly Canada,
$2,129,988. In 1864 the imports were only $16,628, but the exports
amounted to $3,778,820.
Among the exports in 1865 were: flour
155,521 bbls., wheat 1,355,899 bushs., pork 2,034 bbls., and 27,450
lbs., &c.
The total number of arrivals at the Milwaukee Custom House in 1885
was 3,099 vessels, and 1,359.962 tons. The number of departures was
3,085 and 1,358,S19 tons. The arrivals and departures in 1865, and the
three previous years were as follows:
AERIVALS.
Vessels.

American vessels.......
Foreign vessels.......... .......

69

Total, 1865.............. .......
“
1864.............. . . . .

3,099
3,061

“

1862............ .......




3,381

DEPARTURES.

Tons.
.Vessels.
1,339,714 American vessels...... ....... 2,974
20,248 Foreign vessels.......... .......
I ll
1,359,962
1.356,540
1,638,133
1,489,473

Total,
“
“
“

1865.............. .......
1S64............ . . . .
1863........... .......
1862.............. .......

3.085
3,032
8,3S7
3,256

Tons.
1,314,504
34,315
1,358,819
1,353,851
1,5 >4,821
1,502,325

416

SUPPLY OF COAL AND OTHER FUELS

[June,

Besides the articles o f commerce named in the above statements there
are a number of others which enter into the trade o f Milwaukee, the pro­
ducts of Wisconsin or the manufactures o f the city itself. Among the
former are the lead of Southern and the iron of Northern Wisconsin, the
ales and beer of the city, and the high wines. The receipts o f lead in 1865
were 4,636 pigs, or 348,000 lbs. and of pig-iron 1,785 tons. The total of
high wines made in the city was 3,046 barrels, and of beer and ale
58,666 barrels. There are probably a greater number o f breweries in
Milwaukee than in any other Western city, and the famous Milwaukee
lager is a favorite beverage far and near. These breweries are also among
the largest in the country.
i

SUPPLY OP COAL AND OTHER FUELS IN EUROPE AiND AMERICA.*
An important question has commanded attention on both sides of the
Atlantic, but chiefly in Great Britain, as to the yield of the coal fields at
present known, and whether it will long suffice for the growing demand ?
It has been asserted that at no very distant day the coal mines of the
United Kingdom will fail to supply fuel enough for the constantly increas­
ing requirements of local consumers and exporters; and the allegation is
met by another, coming from Mr. Ilussey Vivian, to the effect that, at the
present rate of consumption, the collieries o f the British Islands will yet
last for a period of 500 years. Another theory is that at the present rate
of production— say 100,000,000 tons per annum— exhaustion will follow
in 300 years; and still another estimate places the limit at 212 years.
As the fuel question is one o f considerable interest, it has been thought
worth while to collect some information bearing upon it, and present it
here in a concise form, with the premise that this is not the place to dis­
cuss differences in statements, nor to try to reconcile discrepancies.
COAL FIELDS OF THE WORLD.

The following table (abridged from Daddow & Bannan’s volume, entitled,
“ Coal, Iron, and Oil,”) affords a very comprehensive view o f the extent of
the coal fields in Europe and America. Exceedingly little indeed is known
of the other coal formations o f the world ; it is quite probable, however,
that vast coal regions exist in Bra7.il, Africa, Hindostan and China;
Total Area of Total EstiNumber
Coal
Estimated
area o f
the
pro!- mated of work- produced
total availterritory coal
itable con- able acres in each
able supply
in the f rma- w ’rk’g tents
in coal
country
in each
country, tion.
area, p.acre
area.
in 1865.
country,
sq.m . sq.m . sq.m , to is.
acres.
tons.
tons.
Russia in Europe............2,095,000 .........
100
.....
.........................
............
Spain................................ 177,781 4,000
200 ...........................................
............
Belgium............................ 11,313
520 510 90,000
f 26.400 10,000,000 30,000,000,000
Austria.............................. 257,830 2,000 800 90,000
512,000 5,000,(.00 46.080,000,000
France............................... 203,736 2,COO 1,000 90,000
640,000 10,000,000 57,690,000,00(1
Great Britain................... 121,000 12,000 6,195 45.000 3,200,000 90,000,000 144,000,000.000
British North America .. 100,000 18,000 2,200 30,000 1,408,000
500,000 42,240,000,000
Australia.......................... 3,120,000 100,000 15,0''0 30,000 9,000,000
250,000 2SS,000,000,000
Pennsylvania (Anthracite) 46,000
500
470 90,('00
300,800 10,000,000 27,070,000,000
do
(Bituminous) 46,000 15,000 13,000 45,000 8,320,000 15,000.000 294,400,000,000
Illinois............................
55,405 40,000 30,000 30,000 19,200,000 1,000,000 576,000,000,000
Other regions in U. StatesS,000,000 500,000200,000 30,000 128,000,0 022,000,000 3,748,000,000,000
Countries.

Prepared by Wm. J. Patterson, Secretary of the Montreal Board o f Trade.




1867]

417

IN EUROPE AND AM ERICA.

The subjoined statement shows the workable areas of the coal fields in
various countries, with the quantities produced in 1864 :
Square miles.
6,195
200,000

British Islands.............
United States...............
Prussia and Saxony...
France....................... ....
Belgium.........................
Austria and Bohemia..
Spain.............................
British North America

Tons produced.

1,000
1,000
510
1,000
200
2,200

Total tons produced............................................................ ................

36.000.

000

22. 000.
000
12,000,000
10, 000,000
10,000,000
2,500,000
400.000
500.000
143,400,000

The area of all Europe is about 3,758,000 square miles, the coal-pro­
ducing area being less than 10,000 square miles. The entire area of the
United States is about 3,000,000 square miles, the productive coal area
being over 200,000 square miles. Great Britain has an area o f only
121,000 square miles, yet its productive coal area is 6,195 square miles,
or nearly double that of all the rest of Europe. Europe has about one
square mile of coal area to every 375 of territory; the United Kingdom
has one to every 20 square miles ; the United States one to every 15
square miles; and British North America one to every 46 square miles.
COAL FIELDS OF GREAT BRITAIN.

The extent of the British coal fields has been stated thus:
Square

Square

miles
Great Northern Coal Field, in Northumberland and D urham .........
Great Central Coal Field, Yorkshire................................................
Cumberland, W est...........................
Lancashire, Cheshire.......................
North W a le s ...................................
Shropshire........................................

750
900
100
600
160
100

miles.

Staffordshire...........................
Warwickshire.........................
Forest of D ean .......................
Somerset and Gloucester__ _
Derbyshire...............................
South W ales...........................
Scotland...................................
Ireland......................................

Total square m iles...............

The subjoined statement is condensed from Dr. Ure’s estimate o f the
workable area of the principal coal fields in the United Kingdom :
Principal Coal Fields.
Northumberland and D urham .....................................
Cumberland, Westmoreland and West Riding of
Yorkshire.....................................................................
Lancashire, Flintshire, and North Staffordshire.........
Yorkshire, Nottinghamshire, and Derbyshire.............
Shropshire and Worcestershire.....................................
South Staffordshire........................................................
Warwickshire and Leicestershire.................................
Somersetshire and Gloucestershire.............................
South Wales....................................................................
Scotland..........................................................................
Irelan d............................................................................
Total estimated workable area...........................




No. of Thickest
workable seam in
seams.
feet.
18
7
7
75
12
17
11
9
50
30
84
9

9
10
10
..
40
21
7
9
30
6

Estimated
workable
area, acres.
5UU,U00
99,500
550,000
651,500
79,954
65,000
80,000
167,500
600,000
1,045,000
1,850,000
5,688,454

418

[June,

SUPPLY OF COAL AND OTHER FUELS

Edward Hull, Esq,, o f the British Geological Survey, made the follow­
ing statement of the condition o f the principal coal fields of the United
Kingdom :
Coal crop.
S cotch .............................
N ew castle......................
Lancashire, Staffordshire, e t c . . .
South W a le s ................
Cum berland..................
T o ta ls ....................

No. of
collieries
1861.

Area,
Square
miles.

Coal contents.
millions
o f tons.

Produce
of 1861,
tons.

1.920
1,845
535
1,094
25

25,800
24,000
7,591
26,560
90

11,081,000
34,635,884
25,643,000
13,201,796
1,255,644

424
848
1,158
516
28

6,119

83,544

85,817,324

2,974

W . Stanley Jevons, Esq., in his work on “ The Coal Question,” has
tabulated estimates respectin g the duration o f the JNorthumberlaud and
Durham coal field :

Author of estimate.
B a iley .............................
Thom son.........................
Hugh T a y l o r ................
G reenw ell........... ...........
T. Y . H a ll......................
E. H u ll...........................

Supposed
area o f coal
Date
measures
of
unworked,
estimate. gq. miles.

Estimated
amount
o f coal,
millions
o f tons.

Assumed
annual
consumption
of coal,
tons.

5,575

1,866,200
3,700,000

1792
1801
1814

300

1830
1830
1846
1854
1864

732

6,046

3,500,000

750
685

5,122
7,226

10,000,000
14,000,000
16,001,125

Duration
of
supply.
years.

360
200
1,000
350
1,727
400
331
365
450

Sir William Armstrong remarked in 1863 upon these calculations as
follows :
“ The estimates are certainly discordant; but the discrepancies arise, not from any
important disagreement as to the available quantity o f coal, but from the enormous
difference in the rate o f consumption at the various dates when the estimates were
made, and also from the different views which have been entertained as to the prob
able increase o f consumption in future years. The quantity o f coal yearly worked
from British mines has been alm ost trebled during the last twenty years, and has
probably increased tenfold since the commencement o f the present century ; but as
this increase has taken place pending the introduction o f steam navigation and
railway transit, and under exceptional condjtions o f manufacturing development,
it would be too much to assume that it wilt continue to advance with eqi*al rapidity.
*
*
*
*
*
*
*

“ The statistics collected by Mr. Hunt, of the Mining Record Office, show that, at
the end of 1861, the quantity of coal raised in the United Kingdom had reached the
enormous total of 86 millions of tons, and that the average annual increase in the
eight preceding years amounted to 2£ millions of tons.
“ Let us inquire, then, what will be the duration of our coal fields, if this more
moderate rate of increase be maintained. By combining the known thickness o f the
various workable seams of coal, and computing the area of the surface under which
they lie, it is easy to arrive at an estimate of the total quantity comprised in our
coal-bearing strata. Assuming 4 000 feet as the greatest depth at which it will ever
be possible to carry on mining operations, and rejecting all seams of less than two
feet in thickness, the entire quantity o f available coal existing in Great Britain h*s
been calculated to amount to 80,000 millions of tons— which, at the present rate of
consumption, would be exhausted in 930 years ; but with a continued yearly increase
o f 2£ millions of tons, would only last 212 years.”

It is certain that the annual yield of coal by the 3,268 mines in Great




1867]

419

IN’ EUROPE AND AMERICA.

Britain, is now considerably more than 100,000,000 tons annually. The
British Board of Trade returns show that the local and export trade of the
Kingdom were as follows :
Local
consumption.

In 1864................................
1865 ...............................
1866 (estimated)...........

Exported.

60,35*2,146 tons....................................
85,461,038 “
89,082,215 “

4,309,265tons.
9,170,477“
9,916,244“

It appears from these figures that in eleven years the consumption of
coal in Great Britain had increased 4 l£ per cent.; while the quantity ex­
ported during the same period showed an increase o f 1 1 2 f per cent.
From these ratios of increase it has been inferred that the yield of the
British coal-mines in the year 1900 will amount to 300,000,000 tons, and
in the year 1950 to the vast quantity of 2,000,000,000 tons.
The quantities and values of “ coals, cinders, and culm,” exported from
Great Britain to various countries during the year 1864, 1865, and 1866,
are shown in the following table :
Exported to—
Tons.
Russia....................... . 472,844
Sweden...................... . 245,894
Denmark.................. . 593,282
Prussia..................... ,. 355.722
Ilanse Towns............ . 576,590
Holland......................,. 241,332
France..................... . 1,447,494
Spain and Canaries.. . 546,029
Italy—Sardinia............ 245,418
United States............
Brazil......................... . 186,992
British India............. ,. 364,038
Other countries........ . 3,226,510

-1864---------- ,
Value.
£206,260
103,418
242,942
131,361
239,529
104,329
623,139
287,242
155,683
129,470
108,436
201,611
1,632,853

8,809,908

£4,165,773

,----------1665---------- ,
Tons.
Value.
488,168
£224,791
261,682
116,879
545,313
242,731
227,392
597,771
604,780
200,626
237,602
108,669
1,589,707
722,148
473,301
25S,510
131,4^9
292,485
197,401
118,430
222,985
131,766
342,283
195,667
3,316,689
1,6SS,089

,---------- 1866Value.
Tons.
£281,939
575,154
133,855
274,295
327,229
696,781
203,855
476,529
611,315
291,266
118,559
243,806
892,981
1,904,091
527,181
303,947
167,944
318,358
83,901
134,107
149,720
215,321
251,172
436,292
1,877,641
3,473,014

9,170,477

9,916,244

£4,437,177

5,084,009

Franco appears to be Great Britain’s best customer for coal, and to be
increasing her importations every year. Among the “ other countries ”
referred to in the table, exportations in 1865 were: To Cuba 229,569
tons, to St. Thomas 65,974 tons, to British North America 171,876 tons,
to British West India Islands, including British Guiana 130,317 tons.
The following table shows the values o f the quantities of coal produced
in the United Kingdom in various years within the past quarter of a cen­
tury— calculated at 5s. sterling per ton at the pit’s mouth:
Tons.
1845............
ia50............
1854............
1855 . . . .
1856............
1857............
1858............
1859............

6»,661.401
61,453,079
6%394,707
65,008,649

Value.
£7,875,000
12,500,000
16,165,350
16,113,257
16,663,862
16,348,676
16,252,162
17,994,941

I860............. .......
1861............. .......
1862............. .......
1863..............
1864............. .......
18:5............. .......
1866............. .......

Tons.
80,042,693
83,635,214
81,638,338
H),000,000
94,631,515
98,998,469

Value.
£30,010,674
20,908,833
20,409,584
21,573,053
22,500.000
23,657,8 9
21,749,617

The number of persons employed in coal-mining in Great Britain in
1865 is said to have been 300,000; and if the ratio o f increase observed
in past years shall continue, it is calculated that the under ground working
population in the year 1950 will be about twice the present population o f
British North America!
While it is admitted that there may come a time when the yield of coal
from the existing colleries will not be equal to the estimated prodigious




0

SUPPLY OP COAL AND OTHER FUELS

[tTune,

demand of future years, the fact should not be overlooked that the indi­
cations of geologists respecting the localities where profitable coal workings
may be expected, are not always to be implicitly relied upon.
This is
shown by recent discoveries in Shropshire, England, a new coal district
having been opened up to mining enterprise, in a region where it w’as as­
serted no such deposit could be expected.
Such is also alleged to have
been, at least in one instance, the experience of explorers in Nova Scotia.
There may be hope in another direction. It is asserted that the pre­
sent method o f consuming coal for manufacturing and household pur­
poses, cause an average loss o f 60 per cent, of caloric. If such be the
case, it can scarcely be doubted that an anticipated sca.city will stimu­
late the ingenuity o f inventors; and the mere smoke-consuming appli­
ances may be so improved as to prevent the loss of so very great a
percentage o f the heat generated at so much cost; for if the estimate
of the quantity of coal consumed in Great Britian in 1865 be correct,
then it would appear that the heat arising from the consumption of over
51,000,000 tons of coal— i. e., 60 per cent, of the 85,461,038 tons con­
sumed in that year, was wasted by escaping into the atmosphere.
COAL IN THE UNITED STATES.

In attempting; to convey an intelligible idea of the extent of the coal­
fields of the United States, a recent writer on the subject puts the case
in this way : “ The relative amplitude of the coal seams o f our own and
other countries may be made more appreciable by taking the amount of
workable coal in Belgium as our unit; than that of the Britannic isles
becomes rather more than 5 ; than that o f all Europe 8 f, and that of North
America 111.”
;
Sq. miles.
Massachusetts and Rhode Island
800
—-Bituminous...........................
Pennsylvania— Anthr cite...........
470
Pennsylvania— Bituminous........
12,656
Maryland,
do
550
West Virginia, do
............. 15,000
.............
225
East Virginia,
do
North Carolina, do
..............
45
Tennessee,
do
3,700
.........
17n
Georgia,
do
Alabama,
do
4,300
Kentucky,
do
13,700
Ohio,
do
7,103
Indianna,
do
6,700
Illinois,
do
30,000
Michigan,
do
13,000

Sq. miles*

Iowa— Bituminous........................ 24,000
Missouri,do
........................... 21,000
Nebraska,do
...........................
4,000
Kansas, do
.............................. 12,000
Arkansas,do
........................... 12,000
Indian Territory— Bituminous . . 10,000
Texas,
<’o
..
3,000
Oregon,
do
..
500
•Oregon— Anthracite......................
100
Washington Territory—Bitumi­
nous, (estimated)........................
750
West o f Rocky Mountains—Bitu­
minous, (estimated)...................
5,000
Total.................................... 200,266

These coal regions contain an immense supply of fuel. The anthracite
district, as compared with the bituminous areas, is insignificant, yet the
workable deposit o f the former is calculated to be 18,000,000,000 tons ;
which would yield 15,000,000 tons per annum for 1,200 years. The
greatest bituminous coal seam known in the United States is the one in
W estern Pennsylvania, in the midst of which Pittsburg is situated; according to estimate it covers 8,600,000 acres, the upper seam of the area
containing 53,516,000,000 tons. The actual yield of anthracite in 1865




1867]

421

IN EUROPE AND AM ERICA.

was 11,532,732 tons; o f bituminous, 11,324,207 tons ; total in that year,
22.856,939 tons.
The progress o f the coal trade of the United States is shown by the
following statement of the quantities marketed during 46 years :
Tons.

1820
1830
1840
1850
1860

1830......................................................
1840......................................................
1850......................................................
1860......................................................
close o f 1865........................................

359,190
6,26 1,197
19,3 ■3,429
56,954,869
52,172,869

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

135,121,4S9

to
to
to
to
to

Increase.

.....................
___
164 per cent.
___
21
“
___
19£ “
____
8|
“

COAL MINES OF BRITISH NORTH AMERICA.

The area o f the coal-fields o f British North America has been variously
estimated at from 5,000 to 10,000 square miles. Professor II. Y. Hind
cites the following details :
1st. Central Coal Field o f Nova Scotia and New Brunswick.— Area,
6,800 square miles ; maximum thickness, 14.570 feet; number of seams
of coal, 76 ; aggregate thickness of coal, 45 feet. The principal known
coal beds are at the Joggins in Nova Scotia,— 3^- and 1|- feet thick. The
Grand Lake seam in New Brunswick is 22 inches thick.
2d. Colchester and Hauts Coal Field N . S.— Area 200 square miles ;
coal seams, under 18 inches.
3d. Picton Coal Field, N . S.— Area, 350 square miles; thickness o f
main coal seams, 37-J- to 3S feet and 22£ feet, separated by 157 feet of
strata. [A pillar of coal 36 feet high was sent from this region to the In­
ternationa! Exhibition at London, in 1862, and one somewhat larger to
the Paris Exposition this year ]
4tli. Coal Fields o f Richmond and Cape Breton.— Area 350 square
miles; productive measures cover 250 square miles; thickness 10,000
feet; contains numerous seams o f workable coal, the main seam is 6 feet
9 inches thick. Valuable coal seams occur also at Lingan and Bridgeport,
one of which is 9 feet in thickness.
5th. Newfoundland Coal Field.— Two small coal fields exist on the
Island ; the thickest bed is about three feet.
Another authority has tabulated the workable areas in the Maritime
Provinces thus:

,

Sq. miles.

New Brunswick ........................................................................................................
Nova Scotia— Cape Breton........................................................................................
P icto u ................................................................................................
Cumberland.....................................................................................
Newfoundland............................................................
Prince Edward Island...............................................................................................

1,U00
200
350
250
250
150

COAL IN NOVA SCOTIA.

The most productive districts in the Maritime Provinces are those of
Pictou and Sydney in Nova Scotia. The “ main coal” in the Pictou dis­
trict is 36 feet thick, at one point 38 feet. The coal seams of Sydney are
of smaller dimensions.




422

\June,

SUPPLY OF COAL AND OTHER FUELS

The tables on pages 42 and 43 contain estimates of aggregate product
of the coal fields of British North America, while the extent of the coal
areas in the several Provinces is given above. But there are great dis­
crepancies between statements; for, it has been “ roughly estimated” by
one gentleman of mining experience in Nova Scotia, that the future avail­
able supply of coal in that Province will not exceed 400,000,000 tons.
While another gentleman, addressing the writer of this report, says:— “ I
have with considerable care calculated the available quantity o f coal in the
Cape Breton field, and feel certain that it cannot exceed 300,000,000 tons
in beds of workable thickness, that is not less than 2' 10" or 3' 00" thick,
The coal deposits in Nova Scotia proper, that may be profitably worked.
are also very limited, and the product can hardly exceed 300,000,000 tons.
Hence their great value, taken in connection with their accessibility, and
lying principally on the direct line o f commerce.”
The following statement by Professor Leslie is submitted here, as the
view of one of the highest authorities :— “ The Albion Mines’ beds are very
extraordinary deposits ; they form an exception to all the phenomena of
of coal in all the British Provincial coal regions. Nothing like them has
been discovered in the Provinces. The thickest beds o f Cape Breton,East
Coast, are never over 12 feet, and usually under 9 feet: but we have one
bed (the main seam) 38 feet 6 inches thick, of which 24 feet are good coal,
and the rest partings of black shale arid iron stone; and another bed (the
deep seam) 24 feet thick, one half o f which is good coal, the other half
being poor coal and black shale in intermediate layers. The enormous
quantity of coal here preserved can only be estimated properly by those
who have been used to the vast operations on the grey ash part o f the
anthracite region, where the regular 30 feet vein yields at least twenty
millions of tons to the square mile, after all deductions have been
made.”
The opinion o f Principal Dawson is also valuable. He has said :— “ A
cubic foot of the Pictou coal weighs above 82 lbs., rather less than 28 feet
being equal to a ton of coa l; hence a square mile of this seam (the main
seam) would yield in round numbers 23,000,000 tons.” Allowing 12 feet
of good coal for the deep seam, and 6 feet for the MacGregor seam, they
and the main seam together contain 42 feet of good coal, a square mile of
which would yield the enormous amount of 40,250,000 tons.
There are now 30 coal mines in operation in Nova Scotia and Cape
Breton, which, according to returns from the Department of Mines, pro­
duced the following quantities in the respective years ending 30th Sep­
tember :

Sold for home consumption.......................
Exported to other B.N. A. Provinces.. . .
Exported to other countries.......................

Tons.
round.
87,640
95,077
378,711

1SG6----------,
Tons,
slack.
11,986
11,583
16,304

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

561,428

39,873

/------]1365 ------- ,
Tons,
Tons,
round.
slack.
51,262
8,276
44,558
8,003
509,775
30,980
605,595

47,259

The Chief Commissioner o f mines for the Province (P. S. Hamilton,
Esq.,) has furnished the following figures, showing the quantity of coa




1867]

423

IN EUROPE AND AMERICA.

raised and shipped in Nova Scotia from 1855 to 1866, both years inclu­
sive :
Years.

Ton9.

1855....................
1856....................
1857....................
1858.................... .........
1S59....................
I8 6 0 ....................
1861....................

Cwts. Y ears.
;‘6 1862...................... . . . .
7 1863......................
17 1S64...................... ____

Tons.
893,681
406,699
605,595
561,428

289,618
....

T o t a l........... ____

15

Cwts.

4,308,574

,.
5
12

The mines to which the figures in the foregoing tables refer are situated
as follows :
Chiegnecto Company,Cumberland County
Joggins.......................
do
Lawrence...................
do
Maccan.......................
do
St. George Company.
do
do
V ictoria.....................
A ca d ia ............................... Pietou County.
Albion......................... . . .
do
Bear Creek.........................
do
McDonald and M cK ay.. . .
do
N. Scotia Coal Company..
do
do
In tern a tion a l..................
A cadia................................ Cape Breton.
Block House...........1..........
do
Caledonia Cow Bay...........
do

Caledonia, Glace Bay . . . . Cape Breton’
C ly d e ......................... . . . .
do
Collins.................................
do
Glace Bay........ ..
....
do
G ow rie....................... . . . .
do
International............. . . . .
do
Lingan.......................... . . .
do
Matbeson Little Bras d’Or
do
Mira Bay..................... .. . .
do
Roach and Mclnnis.. . . . .
do
Sidney......................... . . . .
do
Port H ood.................... .Inverness County.
Richmond.................... . . Richmond do
j Sea Coal.....................
do
do
|New Cambleton........ ..V ictoria
do

In the year 1864, 1865, and 1866, Nova Scotia imported as follows:
i
Prom Great B rita in ....
Canada...................
New Brunswick..
British West Indies
United States........

1864. /---------- 1S65
Tons.
Chaldrons. Chald’s.
5,819
....
803
. . . .
338
173
....
1,142
172
1,052
4,355

510

8,9 £9

-------- 1SG6
Chald’s. Tons.
1,206
481
....
906
....
2,527

....

4,639

481

The exports in the same year were as follows:
1S64.

Chalirons.
To Great Britain....................................
Canada..............................................
New Brunswick.............................
Newfoundland.................................
Prince Edward Island...................
British West Indies.......................
United States................................. .
Spanish West Indies, &c .........
St. Pierre..........................................

1865.

Tons.

27S.996

1S66

Tons-

7,012
6,079
23,706
14,022
2 218
450,294
4,689
1,985

575
16,300
16,733
36,132
14,678
2,028
392,712
3,885
2,206

515,905

4S4.719

. . . .

Cost o f Working the Mines.— The Chief Commissioner in li's Report
for twelve months ending 30th SepteTnber, 1806, shows 'h i amounts ex­




424

SUPPLY 6 F

COAL AND OTHER FUELS

[June,

pended in coal-mining operations by the various companies during the fis­
cal year to have been—
New Cambletown . . . ., ..........

MINES IN NOVA SCOTIA PE O PE E .

V ictoria ..........................................

Macao .........................................

$575 | Sydney Mines.................. ...........

$15,574
28,358

Lingan..............................

3,800

Chiegnecto.....................................
St. G eorge......................................

19,762 | International...................
8,708 | Caledonia....................... .

Albion...........................................

38,875

Little Glace Bay............

A cad ia............................................
Nova S cotia.................................
Bear Creek...................................
Germ an..........................................
Montreal and Pictou..................
Miscellaneous workings.............

62,925
4,275
601
4,054
2,215
4,680

| Clyde............................... .

Block House.....................
| Gowrie..............................
I Mira Bay...........................
| South Head....................._____

4,870

j Richmond........................ .
Sea Coal Bay...................

M IN U S IN

OAPE BEETON.

Port H o o d ..................................

19,480 j

$377,951

The Commission makes the following remarks relative to the abrogation
of the Reciprocity Treaty :
“ Although there has been a falling off in the total quantity of coal produced from
our mines, the large number of applications made for licenses during the year evinces
the interest which still prevails relative to this department of our mining resources.
Within the year 376 applications have been made for licenses to search, embracing
about 1880 square miles. Of this area 84 applications, covering about 420 square
miles, have been for ground never previously applied for. Again, the number of
licenses to work taken out during the year comprises 73 square miles, a larger extent
than has ever been applied for within any previous year. This last fact indicates an
ii creased degree of confidence in the Nova Scotian coal deposits from those who have
been most engaged in exploring them.
" As to the d< crease in our coal product for the past year, the cause of that must
be patent to every one. The abrogation of the so-called Reciprocity Treaty with the
United States, and the imposition, iu the latter country, of a somewhat heavy duty
on coal, has of course, had its damaging effect upon our coal trade, as the United
States was our largest consumer. Still the effect has not been so great as might
reasonably have been expected ; and the aspect o f affairs at the close of the first fiscal
year after the abrogation of the Treaty, is the very reverse of discouraging. On ref­
erence to tables in the appendix, droping fractions, it will be seen that the total sale
of coal during the year amounted to 601,302 tons, or 51,551 tons less than those of
the last previous year. Y et the shipments to the United States show a decrease of
145,744 tons. This falling off, it may reasonably be presumed, is not wholly to the
abrogation of the Treaty. The great demand for coal during the late war, and the
depressing effects of the war upon productive industry in tho United States, gave a
great stimulus to our coal trade, and one which did not cease with the close of the
war Again, when the abrogation of the Treaty was imminent, a further stimulus
was alibi (led to that trade, efforts being made to force as much coal as possible into
the United States market before a duty should be imposed upon it.
“ When we look to the other side of the account— to the dire itiou in which our coal
trade has increased—the prospect is very cheering. The proprietors of collieries,
having a check put upon their trade with the United States, have been looking about
them for new markets. The home consumption has increased, as might have been
expected, in the natural course of things—the increase amounting to about fifty per
cent, within the year. What is more important, the exports of coal to the neighbor­
ing North American Colonies has increased by 64,099 tons. These figures, however,
do not sufficiently explain the matter. The annual export of coal to the neighboring
Colonies has more than doubled within the past year, and present indications warrant
the belief in a rapid and continued increase in this trade. In the prospect of nego­
tiations for a revival of the Reciprocity Treaty, these facts are worthy of note. Should
existing commercial relations with “ other countries ” remain as they are, I see no

l




1867]

425

IN EUROPE AND A M ERICA.

reason to doubt that, by the close o f the incoming year, the sales of Nova Scotian coal
will ha\e attained as great an amount as they would at the same period had the R e ­
ciprocity Treaty continued in operation.”
COAL IN NEW BRUNSWICK.

It is to be regretted that so little is known respecting the coal-fields of
this Province. The subjoined figures indicate a considerable importation
for home consumption, the expo ts consisting chiefly o f the peculiar pro­
ducts of New Brunswick. The Albert mine produces a highly bituminous
coal (Albertite, as it has been designated), the opinion being entertained
that it is a mere deposit o f asphaltci; it is now profitably worked.
Pro­
fessor Baily is of opinion that the bituminous shales are mis-named, that
they are neither “ shale ” nor “ schist,” but a true “ cannel c o a l u n l i k e
the Scotch cannel coal, however, to which they are supposed to be anal­
ogous, they leave a very large residuum.
The following are the imports o f coal into New Brunwick during 1864
and 1865 :
1864, tons

From
“
“
*•
“
“

United Kingdom...........................................
Canada............................................................
Nova S co tia ...................................................
B erm uda......................................
United States.................................................
Prince EdwardIsland....................................
Total...............................

16,997
21
10,813
267
8,164
....
81,262

1865, tons.
17,207

20
8.428
223
6,235
53

31,166

The aggregate coal and shale exported in 1864 was 18,011 tons—
16,609 tons going to the United States. In 1865, 1,232 tons of bitu­
minous coal were exported ; 17,464 tons of Albert coal, and 1,242 tons of
shale;— the Albertite and shale, being nearly all for the United States.
COAL IN NEWFOUNDLAND.

Available information throws no light upon the coal mines o f this
island. The imports o f 1865 amounted to 35,509 tons, viz., 25,494 tons
from Nova Scotia, and 9,799 tons from the United Kingdom. In the
same year there were 663 tons exported : including 151 tons to the
British West Indies, 266 tons to the French West Indies, and 146 tons
to Brazil.
PEAT FUEL.

During the past year or two the preparation o f peat fuel by various
mechanical processes has been prosecuted both in Europe and America.
A peat bog is henceforth to be deemed a mine of wealth; and already
there are numerous companies in the United States more or less busy in
arranging for, or already producing the prepared fuel. So far has the
business been carried in the neighboring Republic, that peat literature is
an established fact; consisting not of pamphlets merely, but including a
weekly newspaper solely devoted to expounding and expanding the theory
of the new calorific agent.
It will be seen from the following computation how productive a peat
bog may be : A cubic foot of crude peat taken from a well-drained bog
VOL. LVI.-----NO. V I.
27




42G

\June,

SUPPLY OF COAL AND OTHER FUELS

weighs from 50 to 55 lbs.; condensing and drying reduces it to about
one-fourth of that weight. An acre is estimated to yield wet or dry con­
densed peat as follows:
2 feet deep, 1,000 to 1.200 tons o f w e t;— 25C to 300 tons o f dry.
“
“
825 to 900
3,300 to 3,600
3
“
“
1,650 to 1,800
6
“
6,e;00 to 7,200
it
It
2,750 to 3.000
10
11,000 to 12,000
t
it
22,000 to 24,000
5,500 to 6,000
20
“

In this estimate 40 cubic feet of wet peat are allowed to a ton, while a
ton of drj' fuel requires for its production 160 cubic feet.
It is claimed for peat fuel that the purposes to which it can be econo­
mically applied are as varied as those of wood or coal. For domestic
purposes it is superior (o coa l; except that it needs to be replen . L d
oftener than coal, and less frequently than wood. It burns in open grates
like cannel coa l; and its advantage as a locomotive fuel is that it burns
with great freedom, gives intense heat, and throws off no cinders.
In a work, entitled the “ Industrial Resources o f Ireland,” published by
Sir Robert Kane, in 1844, that gentleman showed that the precious Baltic
iron, for which at that time £15 to £35 sterling per ton was readily paid,
could be equalled by Irish iron, smelted by Irish turf, for £6 6s. per ton.
It has been found by French engineers that the comparative cost o f work­
ing pig iron with different fuels is as follows :
1 ton,
1 ton,
1 ton,
1 ton,
.1 ton,

with wood charcoal, w as....................................
with coal coke , ....................................................
with raw coal....................................................................
with purified peat charcoal.............................................
with crude peat (condensed).........................................

£

s.

4
2
2
2
i

11 0
16
0
15
4
4 10
10
0

d.

T eat fuel is used at the Harwich Iron Works (England), and it is said to
be probably the best at present made in any considerable quantity, being
condensed by machinery, and dried or charred in a kiln. Fuel so pre­
pared was tested against coal at t ese works, and the results o f experi­
ments during two days were these: “ Coal got up steam to 10 lbs. pres­
sure in two hours twenty-five minutes, and to 25 lbs. pressure in three
hours; peat fuel got up steam to 10 lbs. in one hour ten minutes, and to
■25 lbs. in one hour thirty-two minutes. Twenty-one cwt. of coal main­
tained steam at 30 lbs. pressure for Of hours, while I l f cwt. of peat fuel
maintained steam at the same pressure for 8 hours.”
Many successful experiments have been made in the United States,
which must be passed over with this mere allusion. The machinery in
use in that country for its production is of two kinds— one designated the
wet working, and the other dry working; mills on the former principle
cannot be worked in the Northern States or Canada during the winter
months, while the latter might be kept in operation throughout the year.
Canada has a deep interest in the peat question ; for, while geologists are
unanimous that common fossil coal is not to be found in the Province,
there are extensive beds of peat, from which supplies may be drawn to
supplement the wood fuel which is being so rapidly consumed. Practical
men have not been inattentive to the movements going on elsewhere.
Perhaps less enthusiastic and enterprising, they are fully as patient and




1867]

427

IN EUROPE AND AMERICA.

persevering as their more demonstrative neighbors. After a year or two
of patient, careful experiment, James Ilodges, Esq., of Montreal, lias per­
fected machinery for the manufacture of peat fuel, which is different in
principle and operation from the peat mills of the United States, or rather
combining the wet and dry methods. Mr. Hodges has had his fuel tested,
and the results were most satisfactory. He says :
*■Chemical analysis shows that peat, weight for weight, contains only three-fifths
of the heating properties of coal, and it is therefore the opinion of many that it is
little more than half as valuable for raising steam. Now this is all very well in the
closet, but as practice shows that even with the best constructed furnace, thirteen
per cent, only o f the heat-giving properties of coal are utilized, there i< still a pretty
good margin for peat, and a possibility that by being able to economize a greater
per ceutage of the heat-giving properties it contains, to make it do double the work
of coal.”

A ton of Peat-fuel occupies a space o f about 70 cubic feet. A cord of
wood weighs 4,000 lbs., and occupies a space of 128 cubic feet. An ex­
periment was made at the Montreal Puddling and Rolling Mills, the result
o f which was stated by the Manager as follows:—
“ The peat fuel was tested in an ordinary puddling coal furnace, and no alteration or
adaptation was made, although this might have been done, and a large saving of fuel
effected.
“ The pig iron used was Dalmellington brand A , a strong iron soft and very tough.
“ The quantity of peat fuel consumed was nearly double the weight of coal used
on ordinary occasions.
“ In my opinion, and with the present furnaces, by mixing peat with Pictou coal,
we could produce iron equal to the best charcoal iron, and at no more expense than
the present cost of our iron, the quality o f which is equal to the best refined English
iron.
“ With the furnaces as at present constructed we could not use peat alone. The
combustion of the gas given out Dot being sufficiently perfect to produce the heat
required for puddling to advantage, resulting in waste of fuel, and additional labor
to the men.
“ I f we could get the extra price for the quality of iron turned out, there would
be d o doubt about the result; but, I fear this could Dot be obtained, as almost any
description of iron seems to suit this market, so long as it can be sold cheap.
“ I send you samples of the iron made at the trial, which I consider equal in quality
to best charcoal iron, and superior almost to aoy description of iron imported.”

A number o f experiments made with locomotives on the Grand Trunk
Railway have demonstrated the superiority ancl economy of the new Peatfuel over w ood; and the proprietor o f the Caledonia Iron Works, in this
city, states that for giving toughness to the metal used for car-wheels, and
for uniformity of chill, the Peat-fuel is unsurpassed.
The following is a statement of work performed by Engine No. 158,
burning peat fuel with a mixed train of 18 cars, from Montreal to Prescott
Junction 112 miles. Prescott Junction being 260 feet higher than Mon­
treal :—
The train consisted of.

Total




16 freight cars
1 passenger car
1 van
18 cars.

428

SUPPLY OF COAL AND OTHER FUELS IN EUROPE AND AM ERICA. [ < / « « « ,

Weight o f freight............................................................................................. 320,000 Iba.
Do. of cars.................................................................................................. 345,000 “
Total weight of train, cars and freight...................................................... 665,000 lbs.
.................................................. 112 miles.
Distance run .......................................
Lost time made in running between Yaudreuil and Matilda, 75 miles 110 minutes.
Total weight of peat fuel consumed, 3J tons........................................... 7,450 lbs.
Value of fuel at $8| per ton...................................................................... $11.65
Fuel consumed per mile ru n ........................................................................ 66q lbs.
Cost of fuel..................................................................................................... 10 cents.
Number o f car miles run............................................................................... 2,016 miles.
Fuel consumed per car mile run................................................................ 369 lbs.
Cost o f drawing a car containing over 10 tons o f freight, a distance of one mile, a
little over half a cent.
The engine was in the same condition as when used for burning wood, with the
exception of the blast nozzels, which were enlarged from 2$ inches to 2§ inches diame­
ter, or 34 per cent.
PETROLEUM AS FUEL.

Experiments have been going on in Great Britain and the United States
to test the applicability of Petroleum as fuel, in conjunction with super­
heated steam— the trials so far having been made on stationary and loco­
motive boilers. Some experiments were recently made in Canada, and
will no doubt be repeated, when certain chemical experiments with the
crude oil are completed. The success which has attended the attempts on
both sides of the Atlantic, seems to warrant those who have been engaged
in the investigations in claiming that the use of Petroleum as fuel for
locomotives may yet result in great saving to Railway Companies; while
the effect of its introduction into war and merchant steamships may be of
such a nature as to admit of the vessel continuing three times longer
under steam than if coal were used.
The obstacle to the “ Great Eastern's’ ’ making a voyage to Australia
or India, was at first purposed, was the necessity involved of carrying
10,000 tons of coa l; with Petroleum for fuel that ship might carry thrice
more than if coal were used.
It is possible, therefore, that the great
steamship may yet go to India or to Australia, and realize the idea of her
projector.
The Cunard steamship “ P ersia " is 3,500 tons burthen—
1,400 tons being occupied by coal for the transatlantic voyage; such being
the case, it lequires little reflection to comprehend of how much value
the successful use of petroleum fuel would be in ocean navigation. The
direct and indirect saving would be immense. The introduction of Peat
and Petroleum to supply the want o f coal, and to reduce, if not to entirely
stop, the consumption of wood, would be an incalculable boom to Canada ;
while it would bring into requisition the vast and increasing quantities of
Petroleum, for which there is at present no adequate outlet. The quantity
of Canadian Crude Petroleum likely to be available in 1867 has been
estimated as follows:—
Stocks on 31st December, 1866.................................................................... 43,000 brls.
Yield at Fetrolia (omitting small wells)...................................................... 275.000 “
“
at Bothwell and Oil Springs............................................................... 10,000 “
328,000 brls.
Estimated home consumption........................................................................ 143,474 *•
Surplus.................t ............................................................... ..




184,526 brls.

1867]

429

DEBT AND FINANCES OF MARYLAND,

DEBT AND FINANCES OF MARYLAND AND CINCINNATI.
MARYLAND.

The funded debt of the State of Maryland as it existed on the 30th
September, 1S66, amounted in gross to §13,549,796 53 ; but deducting
amounts cancelled and the amounts on which the Baltimore & Ohio Bailroad Company are liable and pay current interest, the actual debt appears
to be only $7,514,413 43 as shown in the following table:
Purposes for
which issued.
Baltimore & Ohio R R ___
“
“ (sterling).
“
“ (conv’rt.).
Chesapeake & Ohio Canal.
“
“ (sterling).
“
“ (conv’r t ).
“
“ (sterling).
“
“ (conv’rt)..
Baltimore & Susque. R R ..

it

it

it
tt
Annap. &Elk. RR.(st’ng)..
“
“ (curr’cy)..
Susque.& T. W. C. (st’g.)..
“
u (conv’rt)..
East. Shore RR.(sterling)..
“
“ (curr’cy)..
Bounties to Volunteers...

Rate Principal
Date o f act o f
when
authorizing, int’ st. due.
Amount outstanding.
.Ch. 104 o f ’27 5% '’45 or’80 $24,000 50 ]1
. “ 386 o f ’38 5
1S90 2,328,888 89 -$3,301,3S9 £9
1890
. “ 41 o f ’47 5
948,500 00 j1
.Ch. 241 o f ’34 6
1S70 2,000,000 001
1885
30,000 00 |
“ 395 o f ’35 6
. “ 386 o f ’38 5
1S90 1,955,555 56 \
. “ 41 o f ’47 5
1S90 1,314,060 00 (
1889 1,032,222 21 1
. “ 396 o f ’38 5
1889
373,285 00 j
. “ 41 o f ’47 5
,Ch. 241 o f ’34 6
1870 1,000,000 001
“ 302 o f ’37 3
1890
315,000 00 !
“ 395 o f ’ 3S 5
1890
26,100 06 |
1S90
“ 20 o f ’39 6
429,587 81JI
.Ch. 386 o f ’38 5
1889
60,000 00 (
. “ 12 o f ’39 6
1889
95,420 25 j
.Ch. 416 o f ’38 5
1865
802,000 00 |
. “ 41 o f ’47 5
1865
215,622 00 (
.Ch. 336 o f ’38 5
18S9
<0,000 00 )
. “ 323 o f ’39 5
1890
38,554 35
,Ch. 15 o f ’ 64 6 after 1874
501,000 00

Total amount on September 30,1866................................. ............................ $13,549,796 53

From which deduct as follows:
Issues under Chap. 241 of 1834 to Chesapeake & Ohio Canal & Bal­
timore & Susquehanna R.R. amounts cancelled from sinking
Fund................................................................................................... $1,121,107 00
Also, issues under Chap. 386 & 396 o f 1833 to Baltimore & Ohio
Eastern Shore & Annapolis & Elkridge Railroad, and Chesapeake
& Ohio Canal, converted into currency and cancelled under
Chap. 285 o f 1884................................................................. •........... 1,636,SS7 21—$2,757,994 21
$10,791,302 32

Also amounts on which Baltimore & Ohio R.R. Company pay the in­
terest, viz.:
Sterling Debt, interest payable in London..........................................$2,328,888 89
Converted Debt, interest payable in currency.....................................
948,500 00 — 3,277,388 89
Amount of Debt for which interest is provided by State.................................. $7,514,413 43

The sterling bonds issued under Chap. 416 of 1838, of which $802,000
are outstanding, were made redeemable at the pleasure o f the State after
Jan. 1, 1865. These bonds are payable in London, and in view of the
present high rate of exchange, the comptroller recommends the cancella­
tion of the existing issues and their replacement by a new series of bonds.
Against the above debt the State holds productive and unproductive
property to the estimated value of $25,049,739 85, accounted for as follows
Bank stock.................................................................................................................
Railroad stock (Balt. & Ohio $500,COO, and Washington Branch $550,000)........
Turnpike s to c k .........................................................................................................
Baltimore & Ohio R.R stock, interest payable in London.......... $2,372,222 22
do
do
do
converted..............................................
901,450 00—
Bonds of Susq.]& Tidewater Canal companies................................
1,000,000 00
Stock of Chesa. & Delaware Canal Co.............................................
50,000 00—
Dividend bond o f Balt. &Ohio R.R. Co. ........................................
10,000 00
Bond of Baltimore & Ohio R.R. Co................................................
260,000 00—
Due from incorporated institutions, collectors, sheriffs, inspectors, registers,
auctioners, &c.........................................................................................................

$91,100 00
1,050,000 00
15,000 00
3,273,672 22
1,050,01)0 00
270,000 00
1,182,264 96

Total productive property................................................ ............................... $6,932,097 18




430

[June,

DEBT AND FINANCES OF MARYLAND.

Bonds o f Ches. & Ohio Canal Co ............................................................................. $2,000,000 00
Loan to Potomac Co. $30,000, and interest to 1825..................................................
43,280 00
Stocks, v iz .: Potomac Co $120,444 44; Ches &Ohio Canal $5,000,000: Annap. &
Elk RR. $299,37S 41; Md & Del. R.R. (ch303 of 1860) $125,245 ; Eastern Shore
It.it. (do.) $112,700; Phil. & Balt. Central R.R (do) $35,000: Nanticoke Bridge
Co. $4,333.33 • Chesa. Steam Towing Co. $25,000 ................................................
5,722,101 18
Bonds installed and not installed, exclusive of interest..........................................
10,000 00
Due irom Chesa. & Ohio Canal Co., for interest..................................................... 10,317,084 13
do
Penitentiary for premium and interest....................................................
5,097 86
Stock in Elkton Bank.................................................................................................
10,000 00
Dividend Bond No. 58 Balt. & Ohio R.R...................................................................
SO 00
Total not now productive................................................................................ $18,617,642 67
Total productive and unproductive............................................................... $25,049,739 85

Probably about a third of this property now unproductive owned by the
State will ultimately become productive. But even as the matter stands
at the present time the productive property is nearly equal to the whole
net debt. The sinking fund at the close of the fiscal year 1S66 amounted
to 1238,761 7 l, of which $61,582 99 were received in that year. The
aggregate valuation of real and personal property in 1866 was $286,530,83S 34, on which the following taxes were levied for the service of the
year:
Amount o f levy for direct tax @ 5 cents per $100.......... . .. ................................
do
do
do bounty tax @ 10 do
do
.....................................................
do
do
do school do 15 do
do
.....................................................

$143,265 42
286,530 84
429,796 26

Total amount o f levy for all purposes..............................................................

$859,562 52

A new assessment law (chap. 157, o f 1866) went into operation in 1866
under which largely increased values are expected to be realized, on which
the levy fcr 1867 will be laid. Under this law assessors will make their
returns to County Commissioners and Boards o f Control and Review,
whose duty it will be to equalize the rates etc.
The revenue of the State is derived from general and specific taxes and
licenses, and dividends and interest on investments. The total collections
(including $840,695.91 from sales of stocks owned by the State, and
smaller sums from other soirrces) for the year ending September 30, 1866,
amounted t o ........................................................................................................................ $3,325,50794
Balance in the Treasury, October 1, 1865 ...................................................................
432,926 00
Total means for the year 1885-186*3................................................................................ $3,758,433 91
Total disbursements.......................................................................................................... 3,390,61758
Balance in the Treasury, September 30, 1S66

$367,S16 36

The principal items of income and expenditure were as shown in the
following statement:
RECEIPTS.

I

DISBURSEMENTS.

General tax on property.............
“
“ corporations............
“
“ on stocks.................

$740,194 20 Civil officers, salaries ...............
60,065 43 Legislature..................................
50,708 04 Judiciary.......................................

Special taxes & duties...............
Licences.......................................
Charter tax o f one-fifth passen­
ger receipts on Washington Br.
k R ............................................
Dividends & interest...................
Sales o f stocks & bonds..............
Loans...........................................
Sundries......................................

$850,967 73 Asylums and hospitals.................
83,034 68 Penitentiary & house o f refuge..
462,138 23 Home o f Friendless......................
Colleges, academies & c...............
School tax to coun ties.................
459.368 50 U. S. surplus revenue—annual
grant to school fund.................
509,407 49
840,695 91 Agricultural college.................
44,400 00 Public works,subscrip’s.to..........
75,495 49 Public debt, repayments.............
‘,k
interest, &c.............
$3,325,507 94 Temporary loans repaid...............
AntietamNationalCemt’y ___ ...
Sundries........................................
Balance Sep. 30,1866....................

Total means




$3,758,433 94 | Total disbursements

$23,764
70,104
60,343
8,746
46,475
33.000

72
07
41
61
00
00

11.000 00

44,750 00
372,914 73
34,0^9 36
21,tOO 00
167,852 75
33,241 97
707,042 94
895,033 64
727,196 91
10,000

124,071 54
367,b!6 36
$3,758,433 94

00

1867]

DEBT AND FINANCES OF CINCINNTI.

431

The ordinary revenue for 1866-67 is estimated at $2,010,000, and the
ordinary expenditures at only $2,007,600. The expenditures last year
included unusual appropriations and extraC rdinary demands. The prin­
cipal items are as follows :
For tax paid General Government ................................................................................
Exchange tor paying interest on sterling bonds (excess over previous rates............
Bounties jo volunteers, including appropriations for their relief ..............................
State’ s subscriptions to railroads....................................................................................
Total..................................................................................................................

$371,300
550,000
3,850,000
213,000
$4,985,001

CINCINNATI.

The public debt of Cincinnati, as stated by the City Auditor in his re­
port for the fiscal year 1865-66, amounted to $3,203,000. Of this
amount $1,805,000 is guaranteed the interest by certain beneficiaries
(railroad and canal companies and the water works) leaving the actual
debt to be provided for from taxation $1,398,000. The following list
describes the several issues;
Purposes for which issued.
Funding city debts*............................
“
“
t ...........................
Little Miami R. R t § .........................
Whitewater canal X§ .........................
Funding floatingdebts:}:......................
Hillsboro & Cin. R. R !§ ..................
Eaton & Hamilton R R .t § ..................
Covington & Lex. R R .!§ ..................
City Hall lott......................................
Ohio & Mississippi RR.+§.................
Funding floating d ebt!.......................
Marietta & Cincin. R R .!§ .................
Wharf property t .................................
Park* (in $1,000)’.
“ * (one bond)................................
Episcopal burying ground*.................
B oun ty!...............................................

t .................... .................

“ + ...............................
““
.........................
f

Water \vorkst§...................................
“

“

t

t

Schools! — .................. .
u t* ........ ••• •••••
“
lots and houses!

•----------- Principal----------- * -— Interest— .Amoun^
Issued.
Payable. Rate. Payable, outstn’g
Apr. 1 ,’45
Oct. 1 ,’71 5 Apr. & Oct. $100,000
.............’35
Nov. 1, ’855May & Nov.
80,000
May 1 ,’44 Dec.31,’85 G June&Dec. 100,COO
Var.,
’47-48 May1, ’1)7 6 May & Nov.
30,000
Var.,
’47-48 May
1, ’1)70
May & Nov.149,000
Far.,
’50-51 Aug.
1, ’806Feb. & Aug.
98,0»'0
Var.,
’50-51 Jan. 1 , ’81 6 Jan. & July. 150,000
Oct. 1 ,’51
Jan.1 ,’81 6 Jan. & July. 100,000
Apr. 1, ’50
May 1, ’706 May & Nov.
60.000
Var., ’51-52 Jan. 1 ,’82 G Jan. & July 000,000
Var., ’53-54 Jan. 1,1900 6 Jan. & July
S3,0C()
June 1 ,’54 June 1 , ’84 G June&Dec. 122,000
Var., ’55-56 Nov. 1 ,’85 6 May & Mar. 230,000
Var., ’55-56 Nov. 1, ’90 6 May & Nov. 229,000
Mar. 17,’58 Mar.17,’ 88 6 Mar. & Sep
40,000
Mar. 17,’58 Mar.17, 1908 6 Mar. & Sep. 100,000
Nov. 1, ’60 Nov. 1, ’90 6 May & Nov.
34.000
..................
July 27,’76 6 Jan. & July 100,000
..................
July 21,’72 6 Jan. & July
50,000
..................
May 1, ’85 6 May & Nov.
8,000
Var.,
’47 Apr.15, ’95 6 Apr. & Oct. 200,000
Apr. 15, ’49 Apr.15, ’95 6 Apr. & Oct. 100,009
Apr. 15, ’50 Apr.15, ’95 6 Apr. & Oct. 100,000
July 1, ’51 Oct. 15, ’90 6 Apr. & Oct. 100,000
June 15, ’53 Junel5,’90 6 June&Dec.
75,000
Nov. 1, ’35 Nov. 1, ’85 5 May &Nov.
39,000
Aug.20, ’45 May 1, ’S5 6 May & Nov.
25,00(>
Var.,
’61-64 Jan. 1 , ’90 6 Jan. & July
96,000

Against this indebtedness the city holds assets and property as follows :
Bonds o f railroad companies............................................. . ............................................ $1,050,000
Interest paid by city and refundable by railroad companies........................................
706,500
Un;ted States Government for money advanced...........................................................
18,437
Ohio and Mississippi Railroad Company, rent o f wharf property..............................
150,000
School property sold.........................................................................................................
3,000
$1,927,937
Market houses and public landings............................................................... $2,500,000
school property.................................................. ............................................
910,854
Fire department property.................. . a........................................................
598,205
City property (miscellaneous)........................................................................ 1,724,603
City water w o rk s............................................................................................ 2,509,000— 8,242,662
Total assets and property.......................................................................................... $10,170,599
Marked (*) are payable in Cincinnati; (!) in New York, and ($) in Philadelphia; and (§) inerest guaranteed.




432

OUR FOREIGN COMMERCE.

{June,

The population and assessed valuation of property in the city, and the
rate and amount o f taxes, has been quinquennially as follows:
Population.----------Assessed valuation.----------, ,— Taxation. — ,
o f city. Eeal estate. Personal.
Total.
Eate. Amount.
1830........................................... 28.831 $3,157,615 $1,048,529 $4,206,204 1.20
$51,435
1835........................................... 31,000 4,814,030
1,394,542
6,208,572 1.90
107:445
1840........................................... 46,382 4,731,390
1,440,108
6,171,498 2.45
151,201
1S45........................................... 74,699 6,15~ 890
2,015,830
8,173,720 3.00
245,211
1850........................................... 115,438
34,19,,430
8,668,298 42,862,728 1.70
728,686
1855........................................... 140,000
60,335,932 24,994,948 86,330.880 1.48
1,262,897
1.74.& 1.666,231
1860.......................v ................. 161,044 61,428,917 30,532,458 91,961,375
1865........................................... 200,000
67,610,611 63,135,382 130,745,993 2 29
3,050,000

— which levy includes the State and county taxes, and the taxes levied
for war purposes.
The tax levy of 1866 for the service of 1866-67 is estimated as follows:
Schools...............
Superior Court.. .. “
.. . “
Interest
Sewerage
.. “

Work House........
.015 Light Fund...
“
.140 Street clean’ g,&c. . . . "
.050 House o f Refuge.. . . . "

Com. Hospital........
.070 Fuel Fund____
.100 Gen. purp. Police
040
Fire Dep’ s&Inf... . . . f

.050
.100
.700

Aggregate on all city accounts............................................................................................. 1.540

The following table exhibits the sources and amount of receipts and
the amounts expended on city accounts, the amount of debt outstand­
ing, and the receipts and expenses on account of schools at quinquennial
periods:

1830 ..................................................
1835 .......................................
1840 ....................................................
1845 ....................................................
1850 ....................................................
1855 ....................................................
1860 ....................................................
1865 ....................................................
1S66....................................................

i---------- City Account.------ — , Amount
.-----Eeceipts-----,
Total
of City .—Com Schools—,
Taxes.
Total. Expend’ e. Debt. Eeceipts.Expen’ s
$23,337
*78,645
$73,146 $97,100 $14,733 $9,183
18,865
' 89,432
78,737 148,658 12,095 13,069
46,445
73,713
69,325 725,000 24,956 22,004
88,263
139,S86
153,081 1,280,189 32,550 29,436
222,464
423,795
448,951 1,750,000 67,M6 50,529
716,946
902,867
589,468 3,181,000 209,225 167,538
998,621 1,166,887
754,559 3,752,000 232,134 191,714
938,306 1,371,221 1,221,954 3,840,000 344,637 273,865
1,210,322 1,776,416 1,923,36S 3,203,000 465,376 333,470

CUR FOREIGN COMMERCE— BALANCE OF TRADE.
The Bureau o f Statistics, having its machinery now in working order,
is furnishing commercial statistics so promptly as to be o f real value to
the trade o f the country. Heretofore, we have had no official account o f
our foreign trade until eight or nine months after the completion o f the
fiscal y e a r; under the present arrangement a monthly return o f the
commerce o f the United States is published four our five weeks after the
completion o f the month.
These statistics are o f important practical
value, in ascertaining the course o f foreign exchanges and the compar­
ative traffic in the several classes of products.
It has been very generally supposed, from the extent o f our imports
during late months, that we have accumulated a large adverse foreign
balance, which would call for heavy shipments o f the precious metals;
the April report, however, shows that, so far as respects the first quarter
o f the year, this opinion is erroneous. The returns, which we pre­
sume are complete from all the ports, show an important excess o f exports




1867]

433

OUR FOREIGN COMMERCE.

over imports. W e compile from the document the subjoined statement
o f the imports and exports (inclusive o f specie and bullion), for each
month of the first quarter, reducing the total exports entered in currency
value to gold, on the basis o f 136, which was about the average price
o f gold for the three months :
IMPORTS, GOLD

VALDES.

In January.......................................................................................................
February .............................................................................................. ..
March.................. . . . . . . . . . . . . . . . . . . . . . . . . . .................................

$21,931,899
35,740,444
31,082,119

Total imports.......................................................................................

$94,7 54,462

EXPORTS.

In gold values—
January.........................
February........................
March.............................
Total...........................
In currency values—
January.........................
February.......................
March..............................
Total...........................
Equivalent in gold at 136
Total gold value of exports
Excess o f exports ........................

$5,335,013
5,240,345
3,950,322
------------- $14,525,590
$39,999,449
41,509,0S3
43,834,106
$125,842,638
$92,163,704
-----------------$106,689,294
.....................

$11,934,832

It will be seen from this summary that while the imports for the three
months have reached the large total o f $94,754,462, the exports, reduced
to gold value, have exceeded the importations by nearly §12,000,000.
These figures take no account o f the movement o f stocks and bonds,
which is now more than ever an element o f importance in the adjustment
o f our foreign balances. Upon this unrecorded movement it is impossi­
ble to present any approximate estimate. There can, however, be no
hazard in assuming that, during the quarter, we exported a larger amount
o f securities than we imported. During the last quarter o f 1866, the
high prices o f stocks caused by speculation induced the return o f a con­
siderable amount o f railroad stocks from London; but the fall in prices
during the early weeks o f this year, together with the cheapness o f money
at London, caused a brisk return m ovem ent; and it is a fact generally
acknowledged among our foreign bankers that while comparatively no
Five-twenties have been sent home this year, an important amount has
been sent to London, Frankfort and Paris. Really, therefore, the balance
in our favor, for this period, must exceed the twelve millions accruing
on the purely commercial account above presented.
It is not to be overlooked that a large portion o f the exports were
consigned products, which may or may not have realized the value at
which they were invoiced. Included in the exports is 288,000,000
pounds o f cotton, valued at §90,430,000. A s this averages only 31^
cents per pound, including Sea Island, it may be assumed that this large
portion o f the exports has realized the value at which it was entered.




434

[June,

OUR FOREIGN COMMERCE.

On the other hand, it must be considered that in the imports there is
also a certain amount o f consigned goods, a very small percentage o f
which is likely to have realized near the invoiced value under the extreme
depression o f the spring tra d e; so that our indebtedness is probably
below the amount at which the imports were entered.
Those who have judged o f the volume o f our exports fromthe move­
ment at the Northern ports have been misled in their estimate as to
our surplus products. W hile the shipments from this port have been
unusually light, those from the Gulf ports have more than compensated for
our deficiency. W ithin three months we have exported from all the
ports products worth in gold value $106,689,294, which is at the rate
o f over $425,000,000 per annum, a total which has never before been
equaled. The unusually large amount of our exports, however, is due
rather to the prevailing high prices than to an increase in the quantity
o f commodities, and is therefore a matter for but qualified gratulation.
A t the prices current in 1860, the quantity o f cotton shipped within
the first quarter o f this year would have been worth only $31,250,000,
or equal to $43,500,000 in our current currency values; while our
shipments of breadstuff's and provisions would have realised, at the
prices then ruling, but little more than half their late value.
The large extent to which we have paid for our purchases o f foreign
products by Southern produce is deserving o f attention. F or the pur­
pose o f showing what proportion ot the quarter’s exports consists o f
Northern products and what Southern, we present the following classifi­
cation :
NORTHERN PRODUCTS.

Breadstuffs.........................................................................
Provisions......................................................................... .
Other products...................................................................
Total Northern products..........................................

$6,131,834
6,817,104
18,690,519
$31,638,957

SOUTHERN PRODUCTS.

Cotton..............................................
Tobacco and manufactures o f do .
Kosin and Turpentine..................
Spirits Turpentine.......................
Sugar and Molasses.......................
Total Southern products.. . .
Total domestic exports........
Proportion of Northern products
“
Southern
“

$90,629,931
2,487,845
394,195
201.962
89,748
------------- $93,703,681
$125,342,638
25 per cent.
75 per cent.

It is thus apparent that while we have exported only $31,638,957
o f Northern products during the quarter, the shipments o f Southern
amount to $93,703,681, or about three times the amount o f the former.
It is o f course usual, during the first quarter o f the year, when the cotton
crop is going forward rapidly, and the suspension o f interior navigation
curtails the shipments o f breadstuff's, for the Southern exports to gain
upon the Northern; but never has the disproportion been so great as is
here shown. Before the war, the South generally contributed about
three-fifths o f the foreign exports; but, during the pasc quarter, it has




ON THE COLLECTION OP REVENUE.

435

forwarded three-fourths. The following comparison shows the amount
o f Northern and Southern products exported in the year I8 6 0 :
NORTHERN PRODUCTS.

Breadstuff's and Provisions.................................................. $45,271,850
Other products....................................................................... 118,462,186
Total Northern products.............................................. .........................$158,734,036
SOUTHERN PRODUCTS.

Cotton...................................................................................... $191,806,555
Tobacco and m’frs. of do......................................................
15,906,547
Sugar and Molasses...............................................................
440,210
Rosin and Turpentine...........................................................
1,818,238
Spirits Turpentine.................................................................
1,916,289
R ice..........................................................................................
2,567,399
Total Southern products.............................................. .........................$214,455,238
Total domestic exports.................................................... ....................

$373,189,274

Proportion of Northern products.................................................................
“
Southern
“
.................................................................

424 per cent.
574 per cent.

The foregoing figures show that notwithstanding our pur chases o f
foreign goods have been confessedly large, yet we have been far less
deficient in the means o f payment than is popularly supposed. The
quantity o f our surplus has as stated above Been less than in former
years, yet high prices have compensated for the diminished supply.
During the nine months ending Marr „ 31st, we shipped cotton valued
at $143,000,000, which is 12 millions more than the value o f the entire
cotton export of 1858. These facts may furnish an antidote to the
croakings o f the alarmists who are making themselves unhappy over
our “ excessive importations.” The payments o f about nine millions
o f coupons upon Five-twenties held in Europe and the maturing o f
importers’ acceptances upon their spring purchases, occuring cotemporaneously, haveproducedjustnow a demand for specie for the settlement
o f foreign balances; but there are no reasons for supposing that this
movement will be o f extraordinary dimensions, or that the year’s ship­
ments o f gold will exceed the average o f former periods.

ON THE COLLECTION OF REVENUE.*
BY EDWARD ATKINSON.

In the following essay, I propose to discuss th > methods by which the
Government of the United States may collect a revenue sufficient for its
wants with the least injury to the productive power o f the people. Tlie
advocates of an excessively high tariff were in a majority in the recent
session o f Congress, and would have carried their measures, had it no
* An essay read before the Economic Section o f the American Social Science Association, of
Boston.




436

ON THE COLLECTION OF REVENUE.

\June,

been for the persistent opposition of the minority.
I am, however, well
satisfied that a considerable portion of the majority voted as they did in
deference to the supposed wishes o f their constituents, and not because
they approved the proposed law, as it was reported by the Committee of
Ways and Means. It is quite evident that the whole controversy must be
re-opened at the next session of Congress, and it therefore becomes the
duty of the press to endeavor to enlighten public opinion by clear state­
ments of the fundamental principles upon which the laws for the collec­
tion of revenue should be based.
I know not how clearly the controversy may have been conducted in
former times, when protection and free trade were prominent in the polit­
ical contests. In those days I was an ardent advocate o f protection, hav­
ing been educated in that school, and never having b een led to doubt its
wisdom. But I had begun to doubt, when the disturbing element of the
war came in, and by common consent the Morrill tariff was enacted.
Whether this was the best method of meeting the wants of the day or not,
need not now be considered. Suffice it to say, that the country accepted a
high tariff without argument, and as a war measure. It may fairly be said,
that the men who are under forty years o f age have never had their at­
tention called to the fundamental principles which must, in the nature of
thinks, underlie the respective theories of protection and free trade, by any
real discussion of such principles in the newspapers.
Few men begin to
have an}' ideas upon the subject, that are drawn from their own experience,
until they are at least thirty; and, during the past ten years, it has been
Ire'ted mainly as if all men had real knowledge upon it, when, in fact,
there is no subject so important about which men know so little.
The arguments of the Tribune, and other papers upon the side of pro­
tection, are addressed to those who are already convinced, and seem to
the uninstructed mind to be founded upon the idea that a tariff is some­
thing good in itself, a measure which it would be wise for a community
to adopt, even if they had no need of revenue.
On the other hand the
arguments of the Evening P ost and other free-trade papers are seldom ad­
dressed to those who need elementary instruction, bnt generally to men
who are supposed to have well-grounded ideas upon the subject.
The truth is that our country has such boundless resources, as yet but
partially developed, as to have made it easy for any one possessed with
ordinary intelligence and industry to get a good living under any system
of revenue laws ; and mistakes in such laws, injuring but few seriously,
have not compelled the attention of the whole people to the methods re­
quisite for their correction. A little irritation, rather than any real check
to prosperity, has caused the enactment, first, o f a free trade, and then of
a protective policy, causing fluctuations and temporary embarrassment, but
never forcing the great mass o f the people to give close attention to the
matter. Under tire pressure o f our present debt and the existing system
of taxation, it is to be feared that the time has come when the people will
be forced to learn wisdom by the hard teachings of adversity.
In the collection of revenue, the Government simply takes a portion of
the annual product o f the country for its own use, that is to say, secures
to itself a portion o f the result of each man’s labor or effort. The method
adopted is to impose a tax either under the name of “ internal revenue ”
or of “ tariff ” upon the commodities consumed by the people. Hence




1867]

OK THE COLLECTIOK OF REVENUE.

437

arises the axiom, that “ the consumer pays all taxes,” an axiom very likely
to mislead, unless qualified by the statement that consumption depends
upon production. If each person worked for himself alone, his own raising
food, making his own clothing, and never exchanging the result of his labor
or effort for that of another, he could only be reached by the tax-gatherer by
being required to give up a portion o f his product. It is production alone
which yields revenue either to the Government, or to the capital by which
production is aided and rendered greater ; and it is by the increase o f pro­
duction only that we can bear the burden which the consumption or de­
struction of the war has imposed upon us.
To allege that the consumer pays all taxes leads to an utter absurdity,
unless qualified by the statement, that the consumption of one commodity,
not produced by the consumer, is only rendered possible by such con­
sumer producing or aiding in the production o f some other commodity
which he can give in exchange for i t ; and it matters not to him whether
his proportion of the taxes is levied upon the article which he consumes,
let us say upon his tea, or upon the article which he produces, say upon
his wheat. In either case, he simply gives to the Government a certain
portion of the result of his labor— he either pays a higher price for his tea
or he has less money from his wheat wherewith to purchase tea; but, if
he had not produced at all, or had not by the use of his capital aided or
caused some one else to produce, he would have had neither tea nor wheat,
and could therefore have paid no tax.
The problem therefore is so to levy the taxes as not to impede produc­
tion. It will be maintained hereafter, that capital can only be -taxed
through its income, without causing great disaster, and that the income
of capital is a certain share of the product of labor; and therefore, in one
sense, the income itself is a tax levied upon labor by capital. If this pro­
position can be maintained, then the tax levied by Governments upon
the income of capital is ultimately a tax upon production, or the result of
labor.
In this connection it becomes interesting to know who are the capital­
ists and who are the laborers, though I do not mean here to intimate that
there is any natural antagonism between the two. On the contrary, there
is no finer example o f the real harmony o f interest in the universe than
the law so well enounced by Bastiat: “ In proportion to the increase of
capital, the absolute share of the total product falling to the capitalist is
augmented,.and his relative share is diminished; while, on the contrary,
the laborer’s share is increased both absolutely and relatively.”
If there is any natural antagonism between capital and labor, then a
man must often be his own antagonist; for many men, I may say most
men, are both laborers and capitalists. The common laborer who owns
his tools is to that extent a capitalist as much as the mill-owner running
20,000 spindles. lie who works the spade with his hands is no more a
laborer than he who directs the spindles with his head. Each is working
for the general good, although his own aim may be selfish; for one is
adding to the abundance o f the food which we eat, and the other of the
clothes we wear.
It is only when the Government interferes with natural laws, and, dis­
carding the only legitimate object to be considered in the imposition of
taxes, undertakes, under the name of revenue laws, to give a bounty to




438

ON THE COLLECTION OF REVENUE.

[June,

certain interests, that antagonism between labor and capital begins, and
this antagonism is more properly between a class and the mass o f the
people than between labor and capital.
I have said it becomes interesting to know who are the laborers and
who are the capitalists in the common use of those terms, and we may
approximate to this by considering the number o f persons in the United
States who pay a tax upon an income of over six hundred dollars per an­
num, upon which point I have obtained the following statement from
’Washington.
T reasury D epartment, O ffice of I nternal R evenue, )
W ashington, February 7, 1867.
)
S ir .— In reply to your letter of the 81st ult., requesting a statement of the “ total
number o f persons paying an income tax, and the amount of income represented,” I
have to say that the total collections returned on income for the first six months of
the current fiscal year amount, at present, to $47,413,075 99. Full returns from a
lew districts, for those months, have not yet been received. Of this amount the sum
of $20,678,035 10 was returned on income over $600, and not over $5,000 per an­
num. $24,972,677 83 on income over $5,000, on excess over $5,000, and §1,762,363 0 ‘ on income from dividends, and addition to surplus funds of Banks, Railroad
Companies, etc.
The amount of income represented by the above tax is $698,534,741. Te total
number of persons assessed for income on the annual list for 1866 as returned by the
Assessors of 221 Collection Districts is 458,157. A few unimportant districts are yet
to be heard from.
The receipts from income for the current fiscal year will probably not exceed
$50,600,000 ; and full returns from all Collection Districts will, doubtless, show that
it was paid by not more than 465,000 persons.
Very respectfully,
T homas H arland . Deputy Commissioner.
Mr . E dward A tkinson, Boston, Mass.

It thus appears that, out of thirty-six million people, less than half a
million have a surplus above six hundred dollars a year. It follows that
the great majority spend all they earn ; and if their cost of living is
raised by heavy taxes, their wages or earnings must be raised also. It
would then appear certain that any artificial stimulus given to any one
branch of industry, by means o f a bounty granted under the name of
protection, would soon cease to be a benefit even to the protected interest
— such bounty ultimately resulting in a rise in wages equal to the bounty
imposed.
I shall here be met by the question, Is not a rise in the wages of labor
a benefit to the laborer ? And I answer, Certainly not, if such rise is in
consequence of the increased cost of living, and not the result of increased
ability to produce on the part o f the laborer. This question would not
be asked if the function of money, in which wages are paid, was more
clearly understood. If money is the end for which we labor, then any
policy which will cause the rate o f wages to be high is to be advocated
as the best; but if money is simply an instrument by which we measure
the result o f one man’s labor, when we compare it with the residt of the
labor of another, or a commodity in which we store up in a convenient
form a portion of the result o f our efforts, in order that we may at some
future time command the equivalent service or labor of another, then it is
not the ami ,.nt of money or wages, but the service which those wages, or
that money, will command, which is the end for which we w ork; and we




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may readily find that low wages are better for the laborer than high
wages— that they may yield him more immediate comfort, and a larger
surplus to take the form of capital.
Upon one of the largest railroads in this country, the principle has been
established, that the wages of common laborers must be equal to the cost
of one barrel of flour per week; or, in other words, the directors have dis­
covered, that flour is a better standard by which to measure the value o
the time of a common laborer than paper money, and that the various
commodities which a common laborer must have, are gauged by their re­
lation to the value of one barrel of flour per week. Or, to state the pro­
position in another form, that if each laborer were engaged in the produc­
tion of flour, at the rate o f one barrel per week, lie would, in exchange
for the flour, be able to procure tbe exact amount of shelter, clothing, and
other articles of food which he needs, and which are sufficient to induce
him to labor.
Now what matters it to that laborer whether the value o f a barrel of
flour be expressed at eighteen dollars in paper, or thirteen dollars in spe­
cie, either of which sums would represent a high rate o f wages, if the bar­
rel of flour, or the eighteen dollars, or the thirteen dollars will only pro­
cure for him a bare shelter and subsistence ?
Flour has lately been eighteen dollars per barrel, and the rate of wages
on that railroad eighteen dollars per week. Let us suppose flour reduced
to eight dollars per barrel, and all other commodities reduced in the same
proportion, but that the wages o f the laborer on that railroad are ten dol­
lars per week; can he not then save two dollars per week at the low rate,
where he could save nothing at the high rate ? Has not the lower rate a
higher value to him ?
I believe this is precisely the difference existing between the position of
the skilled artisan o f England and that of the skilled artisan in this coun­
try at the present time. In England the rate of wages is nominally much
lower, but a suit of strong fustian clothing can be purchased for one pound
or five dollars. Beer costs three half-pence a glass, or three cents. Meat
is not higher than in this country, and house rent is less ; and, notwith­
standing our great natural advantages, skilled laborers are said to be rap­
idly returning to their homes in Europe.
What we want is an abundance of the things which money will buy,
not abundance of what is called money.
Is the dry goods dealer rich, when he has no cloth upon his shelves,
even though he have a hundred yard-sticks ?
Is the grain dealer rich, when his lofts are empty, even though he have
a hundred bushel-baskets?
Is the grocer rich, when he has no sugar or salt, but only a counter
covered with pound weights?
Is the shipwrecked mariner rich, if flung upon a barren rock witli a bag
of gold, but no food or water ?
Are the United States rich, when they are ceasing to produce as many
yards of cloth, as many bushels of grain, as many commodities as they
formerly did, in proportion to their population, because they have 900,000,000 paper dollars wherewith to measure the value of the decreasing
cloth and grain and commodities?
To return from this digression. It has been proved that there are not




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[June,

more than 465,000 people who pay an income ta x ; let us admit that
135,000 avoid payment who are liable, and we have 600,000 heajjs of
families; multiply by 5 and we have 3,000,000 people out of 36,000,000,
who have a surplus, or who may be called capitalists in the ordinary use
o f the word. It would be interesting to know how many of the lobbymembers, so called, who have been or may hereafter be in Washington to
influence legislation upon the Tax and Tariff Bills, will represent the
3,000,000 who are capitalists, and how many the 33,000,000, who are not.
Yet the latter are the producers, to a far greater extent than the former,
and therefore are the tax-payers to a far greater extent. Again I must
state that I might imply no natural antagonism between laborer and
capitalist; it is the law of God that all interests are harmonious; it is
only our ignorance which produces antagonism. Neither do I impute to
all the lobby-members purely selfish motives, or a desire to secure their
own ends at the cost of the general interest. I only wish to point out,
that there is a great preponderating mass of industrious laborers for whom
no lobby-members will appear, who may not now be able to influence
legislation, and who may now be unenlightened, but upon whose comfort
and prosperity unjust laws may press heavily, and whose instinct, if not
whose reason, will cause them to sweep from power the men who, even
by mistake, shall oppress them with special laws, by which there shall be
added to the oppression of the taxes a system of bounties to special in­
terests yet more oppressive than the taxes themselves.
It has been said that no great abuses were ever reformed by the volun­
tary acts of legislators: all great reforms have been accomplished, either
by the pressure o f public opinion or by the revolutionary acts of the
people; and most, if not all, of these reforms, have consisted simply in
removing the impediments which law-makers have placed in the way of
the natural development of the people. To establish justice is the function
of law-makers, and only so far as they believe justice requires the enact­
ment of laws giving a direction to labor which it would not otherwise have
taken, can protective or bounty laws be defended.
I am satisfiid that justice to the whole people never required such
laws ; but, since they have been enacted and have caused our industry to
be directed from its natural channels, while justice requires the ultimate
repeal of all such laws, it equally requires that such abrogation shall be
reached by slow and cautious measures, and with fair warning to all who
have been induced to employ or invest capital in consequence of their
having been enacted. The capital of the community being the fund
from which wages are paid, it is o f equal, perhaps of greater importance
to the laborer than to the capitalist, that capital should not be destroyed
by sudden changes in the lavs. Because we have not accumulated as
much capital as we might have done, under a natural system, is no reason
for destroying by sudden changes what we have accumulated.
W e may be sure, that, on whatever platform the members o f any Con­
gress may have been elected, they will enact such laws as the opinions of
their constituents shall demand. It is given to but few men to become
leaders and to mould opinions: the average intelligence of the people
diet ites the policy of those who govern, or are said to govern ; and upon
the enlightenment of the people depends, with rare exceptions, the wisdom
of the legislators. There is not in the present Congress a single man who




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has proved his ability to lead public opinion in regard to the systems of
protection and free trade by showing first that he could impress upon
them an intelligent conviction of the truth of his premises. The Moriill
Tariff, so called, and the subsequent acts, are purely empirical measures
which will not bear the test of investigation upon any theory whatever.
Mr. Wells’s bill was not claimed, even by himself, to be anything but a
temporary device, well adapted to meet the abnormal condition of a paper
currency— a condition which renders any permanent legislation for the
collection of revenue practically impossible.
His report, on the contrary, contains an amount of information such as
has not before been placed before the people, and statements of facts
which are indispensable to sound legislation. His convictions are evident­
ly changing somewhat, and I believe that a man of his ability, and with
the opportunity which he has for observing the evils of legislation for
special interests, cannot long avoid being a convert to the doctrine that
fiee trade and not protection is the proper basis from which to enact a
tariff law for the collection of revenue.
I do not mean to assert, that there are no men in Congress capable of
leading and moulding opinion upon these matters, but the whole attention
of those who are thus able has of necessity been given to questions which,
up to this time, have been of more vital importance; and it is well that
it is so, even if a temporary check be given to our material prosperity.
Far better the rule of a Republican party, true to freedom but mistaken
in its revenue policy, than of a sham Democratic party, false to freedom,
but placed in power by means o f correct views o f the revenue question.
There are three fundamental premises which must be fully understood
before any correct deductions can be reached upon the subject of collect­
ing revenue.
First, That all taxes, either direct or indirect, are levied upon and col­
lected from production— production being the result of labor; and that
labor will be more or less effective according to the amount of capital by
which it is aided or supplemented.
Second, That “ tariff” is another name for “ tax,” and that a tax of
any kind can only be more or less of a burden upon the people who pay
it, and cannot in the nature o f things be a benefit to them.
Third, That money is not an end, but only a means to an end, and
that even gold and silver money is only useful up to a certain amount,
which will define itself, if left to natural laws; from which it follows, that
a country may be guilty of as great folly in the enactment of such laws
as shall cause an accumulation of specie within its borders more than
sufficient for its use, as the miser is guilty of when he hoards gold in a
strong box.
Before we consider the first proposition, it may here be well to define
what is meant by labor. Its technical meaning has come to be simply
physical effort. I use it in the larger sense, in which is included any effort,
either physical or mental, by which the gifts of God are moved into form .
for human consumption. Economic writers have sometimes made the
statement that all that we do is to move things. W e move the soil and
we move the seed, but Nature gives the harvest. W e move the wood and
the stone, forming the dam, and we move the wheel into position; but
Nature, or the God of Nature, gives the water and the law of gravitation.
VOL.

l v i .—- n o

. v i.




28

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And when we have moved things into what we call permanent form, they
become capital— such as houses, or mills, or improvements upon land, or
gold and silver m oney; but still, effort, movement or labor must be applied
to keep the mills in motion, to work the land or the mines: capital renders
labor more effective, causes it to yield a larger product, but can never take
its place.
It seems but simple justice, that the capital of the country should bear
the largest share of the taxes ; but how can it be reached ? An arbitrary
division is impracticable, and a tax upon the income o f capital is simply a
share of the product of labor, which product the use of the capital has
increased, not thereby displacing the labor. Labor, after all, gives the
result; and a tax upon the income o f capital is simply a tax upon the
labor or effort which capital has caused to be put in motion, and thereby
rendered more effective.
Is not the income or profit o f capital a charge made by capital for the
service which it renders in causing labor to be more productive ? When
capital took the form o f a spinning jenny with eight spindles, and dis­
placed the old spinning wheel of one spindle, it rendered service to labor
by making it possible for labor in one hour to produce eight times as muob
as it did before. For the service o f one hour of the spinning jenny of
eight spindles, the laborer may pay to the owner the product of four
spindles, and yet have four times as much left for his own use as he would
have had by continuing to use the single spindle. The business being
very profitable, the capitalist will continue to build spinning jennies until
the demand is fully supplied ; but, if you take a portion o f his income by
a tax, the rate at which he will build spinning jennies is retarded, and his
share of the product is maintained much longer at a high point; so that
ultimately the labor will have paid the tax in the form of a higher rate o f
profit upon capital than it could otherwise have commanded.
Capital is no use to the owner, when hoarded: it must be put into
some form in which it can render a service to labor; and, as wealth or
capital accumulates iu a geometrical ratio, while population or labor only
increases in an arithmetical ratio, the rate of interest or profit which
capital can command must be continually less and less, if the whole matter
is left to natural law'. On the other hand, labor may continue to work
wearily at the spinning-wheel o f one spindle, until supplemented by capi­
tal in the form of a jenny, and will do so, unless some one, by an effort
of invention or superior industry, provide such a machine.
It is a well understood rule, that the rate of interest or profit which
capital can command of labor, for its annual use, is in the proportion
which accumulated capital bears to the number o f persons desiring its
use; and their desire is in proportion to their intelligence and education.
This law which regulates the profits of capital is fully proved by the high
rates of interest always prevailing in new countries, and the low rates in
old countries in which the accumulation and use of capital are both fos­
tered, as in England.
*
Now since the avails of the taxes are mainly consumed, and Dot added
to the aggregate o f accumulated capital; and since the rent, interest or
profit o f capital is maintained, even by the imposition of an income tax,
at a higher rate than it otherwise would b e ; and since by this retardation
of the accumulation o f capital, labor is not supplemented by as many or




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as good tools it would otherwise be, it follows that taxation in any form,
even that of an income tax, is mainly a burden upon labor, and not upon
capital, which is the result of labor already expended.
The only manner in which accumulated capital could therefore be
reached would bo by an arbitrary division o f such capital at a given time,
in whatever form it existed, whether as money, mills, improved lands or
railroads, etc.; but such arbitrary re-division of capital is impracticable
upon any principle of equity, and to prevent even this being an injury to
labor, even if it were practicable, it must be proved that the recipients
would maintain it as accumulated capital, and not immediately consume
it or what it would purchase.
I think it cannot be denied that all taxes are collected lrom the product
or result o f labor of each and every year, and are paid mainly by those
who produce, and not by those who live upon the income o f capital already
accumulated; but I am very far from excluding from the class of laborers
or producers the owners o f capital who give their time and attention to
the use of their capital; they are among the most effective laborers and
the largest producers.
Neither do I intend to deny that capital can be reached by taxation,
but only to define the usual effect o f taxation. It is proved by the records
of history that in all cases where the Government o f a country has by
taxation takeu a portion of the capital o f the people, the result has been
disastrous. This will be evident to any one who fully appreciates the fact
that the accumulated capital of the country is the fund from which all
wages are paid, and when taxation has exhausted the income, and begins
to impair the principal, o f course nothing but injury can ensue to those
who are employed and who receive wages.
Capital can be reached by an arbitrary but unequal assessment upon
the principal, and the passage of the act by which paper money was made
a legal tender, was of this nature. The effect o f this act was to seize upon
a portion of every debt d u e; it was a confiscation o f a portion of the
capital of every creditor; and should have been called “ An act for the
collection of a forced loan.” As I have elsewhere said, it may have been
necessary, but I think that although it was a tax upon capital, it has
thrown a heavier burden upon labor than if it had not been adopted and
the product of the country had been secured for w'ar purposes in some
other manner.
Again, the imposition of a tax upon incomes may not retard the accu­
mulation of capital if it induces greater economy in the recipient o f the
income. If the capitalist, in consequence of the income tax, saves the
amount by abstaining from luxurious expenditures, then the amount of the
tax never falls upon labor; there is doubtless a certain amount of economy
induced by our existing income tax. I have elsewhere stated that if fairly
adjusted, an income tax is one of the most expedient methods for obtain­
ing revenue, because it is very far removed from labor, and the retarda­
tion of the accumulation of capital is very slow and almost imperceptible.
It is absolutely necessary to discuss this branch of the question, although
it may be urged that there is danger of arousing prejudice against capital.
I do not share in any fear of this; our native population is too intelligent,
and too well informed to cause any serious danger to be feared from such
prejudice. If this were not so, our town-meeting, instead of being the




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\Jitne,

most economical organization for administrating municipal affairs and im­
posing taxes, would be the most lavish and wasteful. I suppose there are
very few town-meetings held in this vicinity which might not be easily
controlled by the residents o f the towns who pay no property tax.
I have never seen any serious danger to property, even from the large
foreign element in our population, so long as that foreign element acts in
and through the town-meeting. In the cities, it is doubtless an element
of danger until enlightened by more than five years’ residence. But if
we consider this matter fully, we find that the city organization is much
less democratic than the town-meeting, and we have the best proof possi­
ble of the success of absolutely democratic institutions, when we prove
that, by means of the town-meeting, which is absolutely democratic, we
have the safest, purest and most economical management o f municipal
affairs, including taxation.
The drones of society, much more than the paupers, are the greatest
burdens upon the community; using neither their hands nor their heads,
making no effort by which they render a service or add a single product to
the general stock, they waste the substance o f the people. If the property
of such men could be reached by heavy taxation, it might well be justified ;
but they are comparatively few in number, and must be treated as one of
the results of imperfect education and o f the low state of our civilization.
The vampires who gamble in time contracts in stocks, and under the
name of “ corners ” steal the contents o f each others’ pockets, or pluck
their silly victims, might well be assessed ; but, as their capital commonly
consists of brass, the result of the assessment would hardly pay the cost.
The avaricious man who gives his whole time and thought to the accu­
mulation of capital, is working for the benefit of the community, as he is
adding constantly to the tools by which production will be increased,
while the spendthrift is an injury to the whole community, because he is,
while merely spending his income, really wasting the proceeds or results
of other men’s labor. Hence the great and permanent injury to the
country from extravagance o f the present day, following the sudden and
easily acquired fortunes which have resulted from the depreciation of the
currency. Every man who is to-day securing an income by methods
which do not tend to increase the aggregate production o f the country or
otherwise render a service to the people, and who, by means of an incon­
vertible paper currency, is producing changes o f value in commodities not
warranted by the relations of supply and demand, is stealing tbe product
of other men’s labor. The people have, by authorizing the law by which
paper money was rendered a legal tender, created a tool with which skilful
men can filch from the products o f their labor without rendering an
equivalent service.
This law may have been necessary, may have been a part of the de­
structive need of the war, and may have saved the people from worse
evils; but let us call it by its right name; it was simply a law for the
collection of a forced loan. The legal-tender note, or lawful money, as it
is called, does not represent real money. Real must contain, in itself,
two properties: first, measuring •power; second, actual value. Coined
money possesses measuring power by virtue of the stamp impressed upon
it by the mint, which stamp is simply a guaranty that each coin contains
a certain number of grains of gold or silver; but it alsu possesses actual




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445

value because it represents the past labor or effort o f the men who have
been engaged in discovering, opening and working the mines and separat­
ing the metals from the ore.
Paper money possesses measuring power by virtue of the declaration
of the Government that it is a dollar, and possesses value only because
the people have confidence that it will sometime be paid in coined money.
The legal-tender note is really the representative of a forced loan, and as
such should be paid in coin or converted into bonds bearing interest as
soon as possible; it represents not value or the result of past effort or labor,
but debt, or the promise of payment from the result of future labor.
One of the injuries to the community arising from the use of inconverti­
ble paper money as a measure o f value, is in the fact that as it has no
uniform value in itself and for itself; every one who receives it seeks to
get aid of it as soon as possible; this leads to the willingness to pay a
little higher price for articles o f real value and stimulates exchange or
speculation in commodities. From this arises a greater apparent profit to
the individual exchange of, or speculation in commodities, rather than in
their production, hence the community suffers. Production supports the
whole community, including those who conduct the necessary exchanges,
and when the number of the latter is greater than the absolute need, the
producer is supporting an unnecessary number of agents, and the rents of
stores and shops rise in an undue proportion. The business portion of
the community are simply agents acting for the great mass to exchange
their products and their warehouses are simply their tools, both useful
when they promote cheapness o f exchange, harmful when, they increase
the cost of exchange above the absolutely necessary point. The desire of
every man to rid himself of paper money, or of bonds of the Government
which pay him no interest, stimulates an unnatural exchange, advances
prices, causes rents in cities to rise, repels yftung men from productive
labor, and increases the number o f agents or business men. Hence the
absolute need of a steady withdrawal of legal-tender notes, and the return
to coined money which has value in itself, or its representative, paper
money convertible into coin on demand.
During this withdrawal, what is called business will suffer; men who
are in debt may fail, but real prosperity will increase, because, by this
very process, production will be enhanced. Hundreds of persons will be
thrown out of employment, and forced to leave their business o f exchange
and seek employment in the fields or the workshop. Much real hard­
ship will ensue; because, if we have broken a great economic law in
declaring that to be real money which is not money, the innocent
must suffer with the guilty, precisely as in the case of the infraction o f a
great moral law, the criminal causes misery and suffering to others than
himself.
The wisdom and statesmanship o f the legislators will be tested by their
success in solving this difficult problem: in causing the change from
fictitious to real money to be accompanied with the least disaster possi­
ble. If an unwise or mistaken course is followed, production may for
a time be decreased, and the difficulty sought to be avoided may be
aggravated.
As the return to specie payments must be accompanied by a steady
reduction of the prices o f all commodities to a uniform or specie stand-




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[June,

a id ; and as it is evident that the general interest demands the enforce­
ment of this return by the gradual but steady withdrawal o f all the legal
tender notes or evidences o f a forced loan, it would seem fit and proper
that Congress should permit the community to return to a specie standard
voluntarily, by rendering legal all contracts made in specie. W h v should
the Government arrogate to itself the right to make contracts payable in
gold, and not permit the people, whose servants the members of the Gov­
ernment are, to do the same thing.
I f such a law were passed, all contracts made on long time would be
made payable in gold, and one o f the great impediments now existing to
the erection of houses, mills, and the like, and to the construction of rail­
roads, would cease ; and all contracts for the purchase or sale of foreign
commodities would be made payable in gold (as many now are, without
any warrant in the law, but dependent upon the honor and integrity of the
merchants for their fulfilment, and not upon the law).
I have elsewhere said that gold will flow to, or remain in, that coun­
try which has a use for it. The product o f our mines is $100,000,000
a year, and if we could retain this sum annually for four or five years,
it would furnish all the currency we require. W e certainly shall not
retain it until we have a use for it. The Government has a use for
gold, and therefore demands it in payment for duties and gets an
ample supply. If the people begin to use it, as they will when specie
contracts are legalized, then it will remain here; the demand will induce
the supply.
And when H shall become evident that to conduct transactions upon a
gold basis is better for the purchaser, since when the standard is uniform
there can be no additional profit charged by the seller for the risk o f vari­
ation, will not the use o f legal tenders partially cease ? What will they
then he? No longer monSy, but bonds bearing no interest, which the
holders will insist upon converting into bonds bearing interest, even at a
low rate. They may depreciate, or in common language, gold may rise,
but then the more inducement to the community to conduct its transac­
tions in gold and not in currency. The more they depreciate the more
will be the anxiety to convert these into bonds bearing interest, instead o f
tiie unwillingness to do so now manifested.
I believe that the passage o f a law for the enforcement in specie, o f con­
tracts made payable in specie, would hasten the general return to specie
payment, and that it would be one of the natural methods, because it would
simply remove a legal obstacle now standing in the way of the free action
of the people. Such a law would permit old-fashioned people, who pre­
fer stability and a small profit, or a fair return for service rendered— to
gambling and speculating— to conduct their business in such manner as
would secure their desire.
(By speculation I mean rash transactions based on chance, not the wise
foresight of the true merchant who buys heavily to meet a probable scar­
city, thereby equalizing prices and rendering a valuable service to the
community.)
Another illustration o f the fact that taxation is paid chiefly by labor,
and not by capital, may not be amiss.
Let us suppose a community of five men settled upon a given tract o f
land, near which is a city ready to take any farm product at a uniform




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REVENUE.

447

price. The men have each an equal amount of capital, represented by a
spade. A , B, G and D raise just enough to feed themselves, and to pro­
cure in the city clothing and fuel, E, however, by working harder, and
with more intelligence, and by denying himself some portion of the food
and clothing which the others consume, is enabled to exchange a portion
of his product for a horse and plough. He has now more capital, but
only enough for his own use. The next year he has surplus product
enough to procure another horse and plough, but cannot use it himself;
he therefore offers it use to A , B, C and D, and the one who will give the
largest proportion o f his crop, say D, gets it— the competition is four to
one, and the rent high. The next year E has not only the surplus from
the horse and plough used by himself, but the rent from D, and would
purchase two more ploughs, and in such case he would have three ploughs
to le t; there would be four competitors, and it would be the best use of
his capital: the competition would not be as great a3 when it was four
for one, but it would still be four for three ; the aggregate rent would be
larger, but the relative rent smaller. But now comes in an income tax,
and takes from E such portion of his farm product as would buy one
plough ; and the officers o f the Government consume such product— the
avails of the tax. E can only purchase one more plough, making two
instead of three to le t: the competition is four to two, instead of four to
three, as it would have been in the absence o f the income tax. C and D
bid high, and supplement their spade labor at the cost of a heavier share
of their product; E gets not as large an aggregate, but a larger relative
rent for two than he would have for three; C and D are poorer than they
would have been, and A and B remain spade laborers.
In the absence of the income tax, B, C and D would each have had a
plough at a low rent, and A would have been the only spade laborer.
The next year all would have had ploughs, and some other use for capi­
tal would have had to be found— thus inducing enterprise. Then would
come the natural time for E to become an employer, and to hire men
from elsewhere to come in and use his ploughs, since no one will hire
them and his market will still take all farm products at a uniform price—
the inhabitants of the city having increased as fast as the farm products
increased.
I have defined capital to be the surplus result of labor, not consumed,
but put into a form for further use. The bonds or evidences of debt of
the country must not be confined with the capital of the nation ; they
may represent capital to an individual, but to the community they can
only represent a burden.
The utter ignorance of this economic law was not long since exhibited
by the publication of a pamphlet entitled, “ A National Debt a National
Blessing.” The same ignorance is constantly to be observed in the Con­
gressional debates upon the currency, which would be amusing, if they were
not dangerous, we may however feel tolerable assurance that there is wis­
dom enough to resist any further inflation. Those who propose the issue
of more legal-tender notes are rapidly losing the confidence and even the
respect of the community, and must soon cease their dangerous effort, un­
less they wish to be held responsible by an outraged community for at­
tempting to steal from labor its reward, and to be esteemed not only wil­
fully ignorant, but intentionally criminal.




448

ON THE COLLECTION OF REVENUE.

[June,

The absurd dogma that a national debt is a national blessing hardly
needs notice, yet it may not be amiss to gjve a word to it. During the
war a portion of the productions of the country were taken and used. For
what ? For destruction not only of the products thus taken, but of other
accumulated capital. W hat was given for such productions ? An evi­
dence of debt, the interest, and finally the principal, of which must be
gathered from the future production of the people. W ho holds these evi­
dences of debt ? A portion of the people who are thereby enabled to live
without work, on an income derived from property, which, while it repre­
sents property to the owner, represents only destruction of capital to the
community.
Suppose a town wishes to build a school-house, and it employs one man
who cuts and frames the timber, makes the bricks, and erects the building,
receiving while thus employed his food and clothing, and at the comple­
tion of the building an annuity o f three hundred dollars as long as he lives,
on which sum he can live without further work; and suppose that he
chooses so to do. The town has the service o f the school-house in which
its children are taught, and thereby made more effective in their w ork;
their productive capacity is so much increased by the service rendered
them by the school-house as to give them six hundred dollars more per
year than they would have made without it, then their gain is three hun­
dred dollars abovelthe annuity. 4But suppose the school-house is destroyed
by fire the day it is finished: the annuity remains, and the man who re­
ceives is as much a burden as if he were a pauper or a cripple ; he lives
by the labor or others, consuming only and not producing. Such is the
evil of debt incurred for the purpose o f war. Yet active, destructive war
may be, as was our late war, a vast benefit; because it destroyed slavery,
a condition of passive but destructive war o f the most injurious kind, far
worse in its effects than the active war by which it was destroyed.
The result o f slave labor has not been, and cannot be the accumulation
of any large amount o f capital. It yielded a certain product at the cost of
the natural fertility o f the soil,— witness the testimony of one of the most
intelligent southern writers, Dr. Cloud of Alabama, who says, “ If the
country or the climate has been cursed in our appearance as planters here,
it has been in the wasting system that we introduced and continue to
practice.” Then after defining the great natural advantages of Alabama,
he continues : “ If this condition o f things be fact, why is it that we find
so many wealthy cotton planters, whose riches consist entirely of slaves
and worn-out plantations ?”
There is a great prejudice against having our bonds held abroad, but
I think this is a very ignorant prejudice. It is much better that the bonds
should be held out of the country than in it, if the holder intends to live
upon the interest. Let me illustrate :
Suppose a community of six persons, five of whom are employed for a
year in draining a swamp, while the other one raises the food on which
the six live, he having capital in the form of farm-tools, horses, etc. For
his services in raising food, he receives a bond of $1,000, the interest on
which is to be raised by a tax on the whole future product of the six ; but
the capitalist who holds the bond can live on the interest, and refuses to
produce anything more : then have not the five to support six! On the
other hand, the capitalist sends the bond to another community, and pro-




1868 ]

ON THE COLLECTION OF REVENUE.

449

cures for it a thousand dollars worth o f better tools than he had before,
and continus to work: the interest is still only sixty dollars, but there is
the product of six plus the product of the improved tools to assess the tax
upon. The interest is the same but the product greater.
If we send our bonds to Europe, and get for them, as wili hereafter be
proved, five parts good tools, or of the comforts of life to one part of lux­
uries, we make a good bargain, and are much better off than if we retained
them here, and, by so doing, released a part o f our own people from
work.
But a tax of a given amount, even for interest on bonds, may be either
a burden too grievous to be borne, or it may be slight in its effect, the
given amount being the same in each case, upon which point some further
remark will be made hereafter.
'
The greatest progress of a country will be secured by application, on
the part of the people, o f the greatest number of hours o f labor consistent
with health and education, to the production of raw materials, yielded by
the soil or the mines, or in preparing such raw materials for use by the
process called manufacturing. W e may be sure that God has indicated
the direction in which such labor can be expended with the best results, by
giving to different countries different conditions of soil and climate; and
that to interfere with the natural distribution of labor in accordance with
these great laws, as has been done by all so-called protective legislation,
is'to cramp civilization and prevent the spread of Christianity throughout
the world.
Commerce is the most effective agent o f civilization, but protection, if
carried to its legitimate result, would cause each nation to satisfy, as far
as possible, all its desires within its own limits, and there could be no
foreign commerce.
To illustrate this point. The Kaffir of South Africa was formerly a
savage warrior ; he is now a peaceful shepherd in whom some of the
desires of civilized life have been developed. How has this come about ?
By the desire of the civilized men of Europe and America for a kind o f
wool which the climate and soil of South Africa will produce. It hap­
pens that, upon the hills of South Africa wool can be raised with no labor
except that of the shepherd to tend the sheep and the annual shearing,
but the wool is absolutely useless in that climate. On the other hand,
wheat, tobacco, butter, cheese, ironware and tools cannot be raised or made
there at all. What-has happened from these conditions ? The first sett­
lers tempted the Kaffirs to become shepherds by offering them good bread,
butter, cheese, iron and other luxuries hitherto unknown to them, but
yet real necessities for the full development of the manhood in them.
Europe and America took the wool and gave the wheat.
But now the United States say, or rather Ohio says, we can raise all
this wool. True ; but instead of expending only the labor of a Kaffir who
can do nothing else, we must build great barns to protect our sheep in
our cold winter, we must employ farmers to raise hay and roots to feed
them ; and we must expend two days labor of a civilized man, where the
half civilized Kaffir need expend but one— yet we ought to be protected
in our labor : we, the educated, civilized men of Ohio and Vermont and
Massachusetts need to be protected against that poor, half civilized creature
— we are afraid of him. God has given him more sunshine and a better
position than ours, and, if he advances, we shall be degraded.




#

450

ON THE COLLECTION OF REVENUE.

[June,

Suppose Europe were equally afraid of the poor Kaffir, and protected
itself against his wool, what would become of it ? No one would give him
wheat or any other commodity for it; he cannot eat it or wear it, and it
is the only thing he can raise; if he cannot sell it, he must cease work,
cease progress, relapse into barbarism— all the missionaries in creation
couldn’t save him. Yet if protection against the Kaffir’s wool is good for
America, it is good for Europe and ought to be adopted. Is it not true,
then, that the logical result o f protection is to cramp civilization and
check the spread o f Christianity ?
But, says the advocate of protection, when driven from the prohibitive
doctrine, we only want such incidental protection as will come from a rev­
enue tariff. The answer is that there can be no such thing as protection
in a true revenue tariff, because just so far as a tariff stimulates the home
production of the commodity upon which the duty is imposed, just so far
it prevents the importation of that commodity, and therefore it so far fails
to yield revenue. A true revenue duty must always be at a rate less than
the one which will carry the cost of the commodity so high as to induce
its production at home.
There can, it is true, be no tariff, except one that simply imposes duties
on commodities which cannot be produced at all in the country which
imposes it, without its affording some stimulus to the production of ar­
ticles which would not otherwise be produced, and this is the protection
incidental to a tariff. But it is a fault in the tariff as a revenue measure,
and not a merit.
Take the case of the Kaffir’s wool again. Ten cents worth of wheat
will buy of him a pound of wool. The Ohio farmer can furnish ten cents
worth of .wheat, we will say, by one hour’s labor ; but a pound o f wool
will cost him two hours labor, or twenty cents.
Now, if you put a revenue duty of eight cents on the wool raised by the
Kaffir, it will still come ; as its total cost in the United States will still be
only eighteen cents. The Ohio farmer will still make wheat to exchange
for it, only we shall get less wool for the wheat; but, if you impose a duty
which involves any incidental protection or any other kind of protection,
it must be over ten cents so as to raise the cost of the Kaffir rvool to over
twenty cents. Suppose you put the duty twelve cents, then the Ohio far­
mer is protected, aud can mate it for less than its cost plus the duty ; the
Ohio farmer gives up raising wheat, but expends twice the labor on w o o l;
commerce v, ith the Kaffir ceases; woolen clothes cost double; the Govern­
ment has no revenue; the civilized man has put his two hours labor
against the Kaffir’s one, and by means o f protection has won the game ;
the Kaffir relapses into barbarism, and that is the end of i t : but is the
civilized man any better off than he was before? He has now to pay a
direct tax for the support of the Government, and has less time to work it
out than he had before. And this leads us to the second point, viz., that
a tariff is a tax under another name, and that a tax of any kind can only
be more or less of a burden upon those who pay it.
I may be more stupid than other people, and, at the risk of being con­
sidered so, 1 must say that the common arguments used in regard to a
tariff, by the advocates of what is called protection to American industry,
would lead an ignorant man to suppose that the Government was con­
ferring a great favor upon the people by making the commodities which




1867]

ON THE COLLECTION OF REVENUE.

451

they wish to purchase of foreigners cost them more than the foreigners are
willing to sell them for.
The first question to be asked is, what is the object o f a tariff? To
which question I think very few men would make the one answer which
is complete, viz., to raise a certain amount of money with which to pay
the expenses of the Government. Very many would qualify this answer
by adding, “ To raise money, and to develope the resources o f the coun­
try.” But let us look a little deeper. W ould any nation impose a tariff
of duties, if it had no expenses to meet, if it had no money to raise ? The
answer is simply, no, of course not. W hy not, if by a tariff the resources
o f the country will be developed ? Can any one reply to this ?
Next, let us examine into the nature of the expenses of Government.
They are, 1st, The support of the army and navy. Are they productive?
Not at all: their purpose is war, which is destruction. 2d. Interest on
the national debt. Is it productive? N o ; it represents only the destiuction of capital caused by the late war. 3d, The pension list and the
expense of the civil service. Are they productive ? Not at a ll; the pen­
sioners are still representatives of the destruction of war, and the civil offi­
cers of the Government, while necessary to give organization and production,
do not themselves add anything to the aggregate of material product, but
simply consume a portion of it.
All the material of war, and all the dwellings, food and clothing o f the
officers of the Government must therefore be provided by the labor o f the
people. “ But,” answers some one [who is still in the state of haziness
which obscured the vision of the writer for a long time] “ if all those
expenses are paid by a tariff, how are they provided by the labor of the
people ?” Because all foreign commodities imported are the result of the
labor of the people of foreign countries, for which we exchange commodi­
ties which are the result of the labor of our own people (two of our com­
modities or products being gold and silver) ; and, if the Government adds
to the cost of the foreign commodity by the imposition of a duty, it will
take so much more of the home commodity to pay for it. Let us sup
pose that we can produce a given quantity of wheat with the expenditure
of a less number of days labor than are required in England, and England
can produce a given quantity o f iron with a less number of days labor
than are required by the United States : of course we shall exchange wheat
for iron. The Goverment then imposes a duty upon iron, its object being
to procure money for the payment o f its expenses. If any revenue is ex­
pected from the duty on iron, it must represent less than the difference in
the labor required in England to produce iron as compared with the labor
required in the United States.




(To be Continued.)

452

TRADE OF GREAT BRITAIN AND THE UNITED STATES.

\Jw M ,

TRADE OF GREAT BRITAIN AND THE UNITED STATES.
COTTON, BREADSTUFFS, PROVISIONS, ETC.

The British Board of Trade returns for the first quarter of the present
year indicate that notwithstanding the apparent slackness which has ex­
isted in Great Britain for the last few months, the export trade o f the
country is still quite satisfactory. In comparing these figures, however,
with those for I860, it should be remembered that the trade of the United
Kingdom last year was more than usually animated.
Very large pur­
chases were then being made by ourselves, the declared value of the ex­
ports to United States ports, in the first three months being as much as
£8,000,000, against only £3,000,000 in 1865. This year, in the same
period, the shipments have reached a total value of £6,113,600, so that,
as compared with 1866, there is a dimunition of nearly £2,000,000, but
as compared with 1865, an increase of rather more than £3,000,000.
Neither of these comparisons, however, can be considered fair, for during
1865 our purchases were much below the average, while last year our
merchants were taking more than an average supply. If therefore, we ex­
tend the comparison to the year of 1864, we shall find that the declared
value of the exports of British and Irish produce and manufactures to the
United States was £6,500,000, showing a dimunition this year of
£400,000 only. This country still ranks as the best customer that Eng­
land possesses for her manufactures, nearly one-fifth o f the total ship­
ments being on United States account.
The principal decline in the exports to this country in the first three
months of the present year is in cotton piece goods, which show a falling
off to the value of £410,000, in linen piece goods £46,300, and in woolen
and worsted manufactures £789,000. Haberdashery and millinery, cut­
lery, linen thread, bar iron, wrought iron, iron hoops and boiler plates,
tin plates, silk manufactures, and alkali, also exhibit a considerable reduc­
tion ; but, on the other hand, there is an important augmentation in the
shipments of railroad iron, the increase in the export o f this article being
nearly £233,000. In the annexed statement will be found all the leading
articles of export to the United States, together with the aggregate value
of these shipments hence during the first three months of each of the last
three years :
EXPORTS OF BRITISH

AND

IRISH

PRODUCE AND

FROM JANUARY

Alkali...................................................
Beer and ale.........................................
Coal9 ....................................................
Cotton Manufactures—
Piece goods............... ...................... .
Thread..............................................
Earthenware and porcelain................ .
Haberdashery and millinery...............
H ardwares and Cutlery—
Knives, forks, &c............................
Anvils, vices, &c.............................
Manufactures o f German silver, &c
L inen Manufactures—
Piece g ood s.................................. .
Thread..............................................




1

MANUFACTURES TO THE UNITED STATES

TO MARCH

31.
1865.
1866.
£10,860 £281,971
20,841
6,405
15,9S9
19,361

1867.
£220,893
25,524
16,136

400,945 1,511,479 1,135,637
29,013
98,617
99,047
88,975
190,204
207,052
514,866
217,363
576,423

210,222

76,180
26,442
145,914

595,725 1,418,111
67,900
38,322

944,521
46,047

28,029
18,379
3S,3S7

93,707
44,209

1867]

TRADE OF GREAT BRITAIN AND THE UNITED
TED STATES.

Metals—
Iron—Pig, & c..............................................................................
Bar, &c.............................................................................
Railroad............................................................................
Castings............................................................................
Hoops, sheets and boiler plates......................................
Wrought................................................................... ........
Steel............................................................................................
Copper, wrought............................................ . ..........................
Lead, pig, &c..............................................................................
Tin plates...................................................................................
Oilseed...........................................................................................
Salt......................................................................................... .....
Silk Manufactures—
Broad piece goods.......................................................................
Handkerchiefs, & c...................................................................
Ribbons.......................................................................................
Other articles o f silk..................................................................
Other articles mixed with other materials................................
Spirits, British......................................... .....................................
w ool............................................................................. ...................
W oolen and W orsted Manufactures—
Cloths o f all kinds......................................................................
Carpets and druggets.................................................................
Shawls, rugs, &c.......................................................................
Worsted stuffs o f wool only, and o f wool mixed with other
material..................................................................................
Total.............................................................................

453

8,071
44,013
21,139
720
13,218
48,415
76,793
6,164
5,077
152,331
39
6,142

-88,108
172,537
93,509
4,426
82,973
77,282
153,898
20,929
51,829
423,924
42,555
37,237

91,212
105,504
326,005
1,959
50,651
46,688
190,426
10,972
27,814
290,852
46,495
25,132

14,8S7
908
8,584
23,505
7,110
180

....

70,947
5,477
21,068
44,028
25,553
1,657
242

38,971
575
12,566
18,063
24,704
997
715

142,023
24,740
7,329

391,640
237,171
14,918

319,515
274,173
24,414

472,166

1,461,189

727,969

3,022,916 8,056,586 6,113,609

In the first two months of the present year, the total computed real
value of the principal imports into the United Kingdom was £24,281,084
against £26,457,723 last year, and £19,253,701 in 1865. O f these the
value of the cotton imported was as under:
From United States................. .
Bahamas and Bermudas..
M e x ico............................
Brazil...............................
Turkey............................
Egypt.............................. .
British India....................
China...............................
Other countries...............
Total.................................................................

1865.
£56,046
705,47a
520,950
091,693
147,276
3,046,485
1,261,(03
269,858
*58,454

1866.
£5,246,3S8
22,767
12,924
872,002
10",077
1,4;5,690
2,152,530

1S67.
£3,300,885

162,682

173,098

7,057,244

10,055,15)

6,264,SS9

520,786
79,443
1,706,511
465,165

10,001

COTTON*

The import of cotton in March was 883,840 cwt., of which 512,988
cwt. were from this country, 228,871 from Egypt, and only 50,521 cwt.
from the East Indies. The total supply received last year was 872,827
cwts., and in 1865, 621,673 cwt. For the first three months of the present
year the imports were 1,815,219 cwts., against 2,026,409 cwt. in 1866,
and 1,433,274 cwt. in 1865. Annexed are the particulars of these im­
ports:
1865.
cwts.
United States—........................................
Bahamas and Bermudas........ ................
M exico.....................................................
Brazil...................................................... ..................
Turkey....................... ...........................
E gypt............... ................................... ....................
British India........................................... ....................
China....................................................... ....................
Other countries....................................... ......................
$
Total.........................................................

119,818
477,363
404,610
106,146
72,714

1866.
cwts.
1,078,955
2,602
2,850
140,701
41,374
246,897
457,450
46,580
2,026,409

1S67.
cwts.
999,403
42
114,778
33.215
454.005
147,030
2,041
64,705
1,815,219

The exports of cotton during the three months have fallen off to the




454

TRADE OF GREAT BRITAIN AND THE UNITED STATES.

[June,

extent of 188,000 cwts., ivhile as regards cotton goods there is a decline
of about 40,000,000 yards.
The following statement shows the extent
of the exports o f 'cotton and cotton goods to all quarters, from Jan. 1 to
March 3 1 :
COTTON.

To Russia....................................
Prussia...................................
“ Hanover...............................
Hanse Towns ......................
Holland..................................
Other Countries....................

1865.

1866.
3,864
19,»i72
4,167
322,119
106,367
275,535

50,319
2,958
197,118
93,687
198,317

T otal...............................

731,124

542,399

34,679,987
5S1,818,356
1,337,215

33,S01,6PO
621,916,19-i
1,593,269

1867.

COTTON GOODS.

Cotton yarns, lbs.........................
Cotton piece goods, yards..........
Cotton thread, lbs.......................

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

15,815,331

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

1,001,163

BREADSTUFFS.

At the date of our latest advices, the wheat trade in England was very
quiet, but very firm.
This arose out of the circumstance that a con­
siderable inroad had been made into the stocks of old wheat, which had
been held over from the fine harvests of 1803 and 1864, but as the
weather was fine, and as the harvest prospects were good, while the
imports from foreign countries were on such a scale that supply and de­
mand were pretty equally balanced, millers exhibited great caution in
making purchases, and hence the quietness of the trade. So long as the
state o f the weather justifies millers in believing that a good crop of wheat
may be anticipated, there seems to be no doubt but that they will con­
tinue to pursue their present cautious policy.
It may therefore be ex­
pected that, with the prevalence of fine weather, the wheat trade in Eng­
land will assume a position for several weeks quite devoid of interest;
but if unfavorable weather intervene, between now and harvest, there
seems to be room for a considerable rise in prices. In the Board of
Trade returns, this 'country still continues to exhibit a very inferior posi­
tion with regard to our shipments of cereals. In the first three months
of the present year, out of a total import o f wheat of 6,061,852 cwts.,
2,789,245 cwts were received from Russia, 901,117 from Prussia, and only
508,244 cwts. from this country. The total import of flour was only
885,183 cwts., being nearly 1,000,000 cwts. less than in 1866, and of this
quantity only 59,560 cwts. were received from the United States. The an­
nexed statement shows the imports of cereals into the United Kingdom
from January 1 to March 31, 1865, 1866 and 1867 :
IMPORTS OF BREADSTUFFS

INTO

TEE

UNITED KINGDOM FROM JANUARY 1 MARCH 3 1 .
WHEAT.

From Russia..............................................
Denmark...........................................
Prussia..............................................
Schleswig, Holstein, & Lauenburg
Mecklenburg....................................
Hanse Towns...................................
France...............................................




1865.
-Cwts 1,071,111
........

27,529

......

149,504

1866.
2,839,170
42,524
203,961
33.901
9,980
35,612
1,282,140

1867.
2,789,245
170,915
901,117
39,851
145,515
200,764
234,013

1867]

TRADE OF GREAT BRITAIN AND THE UNITED STATES.

4^5

From Turkey, Wallachia, and Moldavia.

1865.
148,308

1866.
174,S35

United 'States’.''.'. ” . ‘ ’ '."'. ‘ ‘ ‘ ' ‘ ''.'.
British North America................
Other Countries...........................

124,426
2,294
139,044

290,980
8,789
750,053

1867.
455,989
10,958
508,244
78
605,049

1.912,614
1,173,942

5,671,948
3,338,874

6,061,852
1,312,790

From Hanse T ow ns................................................... cwtB
France.......................................................................
United States............................................................
British North America.............................................
Other Count: ies........................................................

1S65.
66,671
538,219
71.441
9,959
8,203

1866.
47,837
1,589,482
149.570
4,343
64,278

1867.
129,052
315,182
59,560
6,582
374,807

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

694,493

1,855,510

885,183

Total...............
Indian corn or maize.
FLOUR,

PROVISIONS

AND LIVE STOCK.

A decline has taken place in the value of these articles during the pres­
ent year, and although prices are still high, a gradual downward move­
ment in the quotations is perceptible. The imports in the three months
had been :
PROVISIONS.

1865.

1866.
111,386
39,325
52,161
200,931
102,045
88,717,200
41,560

Beef, salt...........................................

EggS....................................................
Lard....................................................

1S67.
67,768
30,733
26,331
202,712
141.239
83,489,282
36,060

LIVE STOCK.

Oxen, bulls and cow s........................
Calves................................................

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

55,012

134,049

Swine and hogs.................................

33,184
3,839
111,685
7,335

TOBACCO.

The imports, exports and consumption in the three months ending
31, were as under :
IMPORT.

1865.

1866.
2,864,640
7,833,232
592,777

1867.
1,208,080
5,608.507
910,476

2.973,496

3,^58,113
6,788,557
223,648

4.279,476
5,792,827
235,825

179,804
4,407,324
502,800

137,48a
4,463,16o

Stemmed.............................................
Unstemraed........................................
CONSUMPTION.

Stemmed............................................. .................. lbs
Unstemmed.........................................
Manufactured and snuff.................... .........................

203,5C2

EXPO RTS.

Stemmed..............................................
Unstemmed........................................
Manufactured and snuff......................

608,0191

SHIPPING.

The annexed particulars relate to American shipping, so far as regards
the United Kingdom, during the first three months of the year.
UNITED STATES VESSELS.

Entered in March, 1865..........
1866..........
1867..........
44 3 months, 1865..........
1866 „
1867..........




No.
No. Ton’ge
17,790 Cleared in March, 1865 .. ........ 26
. ... 16
1866.... ........ 43
47,516
34,674
1867 . ........ 45
67,082
“
3 months, 1865... ........ 67
122,965
1866....
99,529
... 91
1867.... ........ 114

Ton?ge
25,643
42,015
40,115
61,039
139,994
118,53#

456

CLEVELAND, PAINESVILLE AND

ASIITABULA RAILROAD.

[J u n e ,

VESSELS ENTERED FROM AND CLEARED TO UNITED STATES PORTS.

33
168
153
121
413
352

No.
61
131
141
146
392
372

37,175 Cleared in March, 1865 ..............
153,3S8
1866
..
1807 .............
145,011
“ 3 months, 1865..............
130,992
384,349
18C6...............
355,931
1867
.

.

Entered in March, 1865.................
1866
1867
....
“ 3 months, 1865.................
1866
....
1867 .................

Ton’ge
73,241
121,W)
163,305
174,876
393,657
402,147

CLEVELAND, PAINESVILLE AND ASHTABULA RAILROAD.
Occupying the centre of the Lake Shore Line of railroads, and being
the outlet for the Western markets generally, the Cleveland, Painesville
and Ashtabula Railroad may fairly be considered as the northernmost
stepping stone between the new and old States, and as such, one among
the most important works of the Union.
A t Cleveland it receives the
travel and trade from Chicago, St. Louis and Cincinnati, and extending
thence 96 miles to Erie, it is continued to Buffalo by the Buffalo and State
Line Railroad, and from Buffalo by the Central route to the seaboard
at New York and Boston. As it is one of the most important of our rail­
roads, so has it been one of the most profitable to its stockholders, and
hence its stock being held for investment, is seldom quoted in the markets.
Its real value, however, will be best understood by a careful study of
the figures which represent the company’s business for the last five years.
The amount of the gross earnings o f this road of less than a hundred
miles, and the working expenses yearly have been as shown in the follow­
ing statement:
1S62.
Passengers..........
Freight................
Mails ..................
Use o f freight cars
Interest ...............
Miscellaneous___

$

408,141
1,065,060
21,600
...............
. 15,768
41,057

1863.

1864.

S

S

1865.

1866.

S

S

002,691 13 834,254 85 1,0697323 88 954,538 08
66 1,317,482 21 1,283,994 14 1,125,602 72 1,468,415 99
00 21,600 00 21,600 00 21,600 00 21,600 00
.........
20,524 94
19,610 01
20,526 59
29
24,876 34
30,433 45 25,715 75 12,686 70
86 69,973 17 233,491 80 97,470 50 91,037 49

49

T 't’l gross e’rn’g s..........................$1,551,628 30 2,066,622 85 2,421,298 68 2,359,222 S6 2,568,834 83
Maintain’ groad&c.......................... 157,349 73
Repairs of mach’y........................... 96,965 96
Operat’g the road........................... 300,697 51
U S. & State taxes.......................... 20,641 58

258,413
159,S70
326,587
52,967

13
29
35
19

T 1 octet Ot working..........................$575,704 83

797,837 96

279,755 46
105,225 21
387,325 81
87,974 31

378,166
141,57S
544,SSI
146,034

49
83
64
84

687,243 26
255,781 92
521,196 92
152,571 35

860,280 79 1,210,661 80 1,616,793 46

Net Earnings................................ $975,923 47 1,268,784 89 1,564,017 89 1,148,561 0G

952,Ml 38

T h e a m ou n t o f interest and dividends paid and other disbursem ents,
in each o f the ab ove years, w as as follow s :
Interest.......................................
Dividends in cash......................
“
instock... ...............
“
in bonds.....................
Miscellaneous............................
Construction and equipment..
•Surplus.......................................

$94,710 00 $1C5,0Q0 00 $105,000 00 $105,000 00 $105,000 00
300.000 00 429,000 00 975,815 00
400,000 00 500,000 00
300.000 00 330,000 00
.. (508,185 17
..
400.000 00
...........................................................................
................ 112,70000
72 398,747 22
35,375 50
79,306 01
180,994 831 268,610
141,174 17
84,455 67 * ..............
155,03537

* The surplus of this and former years was distributed in stock
amount oi $1,000,900, being a 25 per cent, dividend.




to the stockholders to the

i

1 8 6 1? ]

CLEVELAND, PAINES VILLE AND

457

ASHTABULA RAILROAD.

The stock of engines and cars owned and operated by the company at
the close of each of the last five years consisted of the following :
1862.

Locomotive engines......................................
Passenger cars—first class...........................
second c lass......................
Baggage, mail and express cars..................
Freight cars........................................ .......
Coal c a r s..................................................... *

1863.
31

1864.
32

SOI

891

21
8
8

21

8

1865.
30

20

12

871

110

1866.
37
24

8
10 ,

890
117

The operations on the road for the same years are shown in the follow­
ing table:
Miles run by pass’ger trains......................... . 201,380
“
by freight trains.......................... . 282,917
“
by coal trains................................

1863.
202,904
346,567
12,9.25

1864.
231,820
360,379
15,399

1S65.
257,812
301,149
13,955

1866.
261,928
298,121
23,010

Through passengers carried......................... . 134,530
Total
“
“
....................... . 237,278

137,409
253,479

245,662
394,670

299,360
501,092

360,735
593,74S

Through freight (tons of 2.000 lbs.) carried.. . 423,766
Total freight (tons o f 2,000 lbs.) carried... . 456,066

544,842
590,033

606,964
657,817

482,723
597,306

385,173
5S9,210

1866.
107,750
32,411

589,210

1862.

The freight carried on the road was classified as follows :
Coal (bituminous)..................................tons.
726
Iron (pig, castings,&c.) and ores.......... “
7,430
Railroad iron.......................................... “
1,785
Petroleum & other oils......................... “
55,120
Agricultural products............................ “
Merchandise........................................... “
84,362
85,874
Manufactures. . ..................................... “
Livestock....................................
119,505
“
Lumber.................................................... “
5,431
Other articles...........................................
“ 95,828

1863.
656
9,024
3,969

1864.
3,744
11,142
3,753

78^740
180,643
59,407
149,907
9,423
98,264

144,i’23
148,397
7,732
141,649
13,964
183,313

1865.
47,169
19,1S4
4,327
6,970
119,506
121,154
57,411
107,525
17,653
96,407

456,066

590,033

657,817

597.306

1862.

948
6,177
117,534
111,651
54,79S
118,921
11,716
27,304

o f s t o c k a n d in d e b t e d n e s s a n d t b e c o s t

of road and equipment yearly :
1864,
1863.
1865.
1866.
1862.
Capital Stock.......................... $3,300,000 00 $3,600,000 00 $4,000,000 00 $5,000,000 00 $5,000,000 00
Funded Debt.......................... 1,500,000 00 1,503,000 00 1,501,000 00 1,500,000 00 1,500,000 00

Total ................................... $4,800,000 00 $5,103,000 00 $5,501,000 00 $0,500,000 00
Railroad.................................... $3,452,143 36 $3,566,896 10 $3,166,159 38 $3,802,783 63
Equipment..............................
590,344 23
738,202 15
937,686 15
986,337 49

$6,500,00000
$3,882,08964
986,33749

Total ...................................... $4,042,487 59 $4,305,098 31 $4,703,845 53 $4,789,12112 $4,868,427 13

Assuming the stock o f this company at $3,000,000 as at the com­
mencement of the period above reviewed and taking the amounts divid
ed to the stockholders through that period, we find that the latter have
received the following amounts— in cash $2,604,815, in stock $1,630,000
and in bonds $400,000, or in all, for the five years embraced, the sum of
$4,634,815, nearly 155 per cent., or at the rate o f 31 percent, per annum,
not including the current interest on the dividends severally. The com ­
pany are now paying 10 per cent, on their capital increased by these divi­
dends to $5,000,000, which is equivalent to 16 2-3 per cent, on the
original investment. Geographical position is the master-key to this grand
result.
VOL.

l v i

—

NO.

V I.




29

458

\June,

RAILROAD EARNINGS FOR A P RIL .

PUBLIC DEBT OF THE UNITED STATES.
Abstract statement, as appears from tbe books and Treasurer’s return s
in tbe Treasury Department, on the 1st of April, the 1st of May and the
1st of June, ISC'?, comparatively :
DEBT BEARING COIN INTEREST.

April 1.
May 1.
June 1.
$198,091,350 $198,431,350 $198,431,350
15,4S2,642
15,379,642
15,325,642
2S3,745,600
283,746,200 288,748,350
989,562,000 1,031.146,150 1,092,640,600
12,500,000
12,500,000
12,500,000

5 per cent. Loads..........................................................
“
“
o l 1867 and 1868.................................
,'
“
“
o f 1881................................................
“
“
5.20’a .................................................
Navy Pension Fund....................................................

$1,499,381,592 $1,541,203,342 $1,602,643,942
DEBT BEARING CURRENCY INTEREST.

6 per cent. Loads............................................................
3-year Compound Interest Notes.......................................

3-year 7.30 notes.............................................................

$12,922,000
139,028,630
582,330,150

$12,922,000
134,774,510
549,419,200

$13,722,000
130,030,240
511,939,525

$734,280,780 $697,115,710 $615,691,765
DEBT ON WHICH INTEREST HAS CEASED.

Various bonds ana notes..............................................

$12,2S5,65S

$11,932,540

$9,713,020

DEBT BEARING NO INTEREST.

United States Notes.......................................................
Fractional currency........................................................
Gold certificates o f deposit..............

$375,417,249 $374,247,687 $373,209,737
29,217,495
28,975,379
28,458,075
12,590,000
15,400,410
17,323,980
$417,225,344 $418 623,506 $418,091,792

Aggregate debt.'............................................................. $2,663,713,374 $2,668,875,099 $2,687,010,520
Coin and Currency in Treasury...................................
140,285,304
148,098,002 171,424,583
Debt, less coin and currency........................................... $2,523,428,070$2,520,786,096 $2,515,615,937

T h e follow ing statem en t show s the am ount o f coin and currency sepa­
rately at the dates in the foregoing table :
Gold Coin.......................................................................
Currency.........................................................................
Total gold coin and currency

April 1.
Jtayl.
$105,956,477 $114,250,444
34,328,827
33,838,558
$140,285,304

Junel.
$98,758,418
72,660,165

$148,089,002 $171,424,583

RAILROAD EARNINGS FOR APRIL,
T h e gross earnings of the under-specified railroads for the month of
April, 1866 and 1867, comparatively, and the difference (increase or
decrease) between the two periods are exhibited in the subjoined state­
ment :
Railroads.
Atlantic and Great Western.............
Chicago and Alton............................
Chicago and Great Eastern...............
Chicago and Northwestern...............
Chicago, Rock Island and Pacific ...
Cleveland and Toledo.......................
E r ie ....................................................
Illinois Central.................................
Marietta and Cincinnati....................
Michigan Central.............................
Michigan Southern......................... .
Milwaukee and Prarie du Chien......
Milwaukee and St. Paul..................
Ohio and M ississippi......................
Pittsburg, Fort Wayne and Chicago
Toledo, Wabash and Western........
Western U nion................................
Total (17 roads)




1866.
1867.
. $394,533 $443,029
269,249
283,921
. 102,013
103,154
617,970
720,651
280,283
249,370
. 223,113
217,940
. 1,153,441 1,217,143
. 406,772
420,007
92,768
.
82,722
. 343,736
362,7S3
391.163
. 409,427
. 108,082
87,510
. 144.950
192.548
284.729
. 277,423
. 599,806
575,287
317.052
. 270,300
43,333
40,710

Increase. Decr’ ee.
$48,496
$ ........
14,672
1,141
102,6S1
30,913
5,173
63,702
13,235
10,046
19,M7
18,264
20,572
47,598
7,306
24.519
46,752
2,623

$5,696,240 $6,030,078

$331,438

$.

■

1867]

459

RAILROAD REPORTS.

This statement is the most favorable o f the year. It will be seen from
it that there was an increase in the gross earnings of these roads for
April this year of $334,438 over the same month last year. The net in­
crease must be proportionately larger, as expenses are necessarily some­
what less with the fall in prices. The gross earnings per mile of road for
the same month of the years respectively, are shown in the statement
which follows.
^•Length in miles^
Railroads.
1 S66. 1807.
Atlantic & Great Western..................
507
Chicago and Alton.............................. ........ .............
2S0 280
Chicago and Great Eastern.................
224
Chicago and Northwestern................. ......................
1,032 1,145
Chicago, Rock Island & Pacific........ ......................
423
423
Cleveland and T o le d o ........................
173
Erie........................ ...........................
775
Illinois Central...................................
708
Marietta and Cincinnati......................
251
Michigan Central.................... „ ........
285
Michigan Southern............................
524
Milwaukee & Prairie dn Chicn..........
234
Milwaukee and St. Paul....................
370
Ohio and M ississippi.........................
343
Pittsburg, Ft. Wayne and Chicago...
408
Toledo, Wabash and Western..........
484
Western Union...................................
177
Total (17 roads)............................

7,368

/—Earnings—\ ^-Differ’ e->
1866. 1867. Incr.
$778 $874 $ 96 $ ...
961 1,014
53
455
460
5
599
629
30
590
663
73
1,289 1,260
29
1,445 1,570
125
574
593
19
330
379
40
1,206 1,273
67
781
746
35
462
374
88
527
520
816
837
21
1,280 1,239
51
559
655
96
245
230
15
$793

$813

$25

$ ..

RAILROAD REPORTS.
OHIO AND MISSISSIPPI RAILROAD.

The operating accounts of the Ohio and Mississippi Railroad for the two years
1865 and 1866, as given by the Auditor, compare as follows :
/----------- Earnings 1SG6.------------* Earnings
E. Div.
W .D iv.
Total.
1865.

S

Passeng’rs.......................... <>49,821 45
Freight.............................. 929,907 95
Exp's & in ..:...................... 107,904 42

$

$

$

/— Difference.— x
Increase. Decr’ se.

$

$

665.774 93 1,015,596 43 2,149,992 82 ............ 534.39G 39
651,568 15 1,581,476 10 1,458,557 43 122,918 67 ..........
75,600 55 183,510 97 18-1,455 20 ..............
944 23

T otal.................................. 1,987,633 82 1,392,949 63 3,380,6S3 50 3,793,005 45 ............ 412,421 95
ord’y exp............................1,791,32515 1,138,211 13 2,929,538 28 2,772,897 45 456,63S 83 ............
Net eari’gs............. ..........

196,30S 67

254,73S 55

451,047 22 1,020,108 00

............ 569,060 73

The comparative earnings of the year 1865 and 1866 shows a decrease on the
whole line of §412,421 95. The military transportation for 1866 included in
earnings was comparatively a small sum, amounting only to §89,813 74, which
in 1865 reached §409,450 51, makiDg a difference in favor of 1865 of §319,636 77,
and showing that the regular business for 1866 was but a small sum less than for
the previous year. And but for the prevalance of cholera in Cincinnati and St.
Lonis from July to December, and the unfortunate disasters to the road by floods,
subjecting the company to the loss of the important bridge over the Miami,
seriously interfering with the heavy fall business from which the largest half
of the year’s revenue is derived, the regular business of the road would have been
larger than that of 1865. The disasters referred to added largely to ordinary
and extraordinary expenses by the increase of labor and material required to put
and keep it in order.




460

[June,

RAILROAD REPORTS.

included in the expenses for 1866 is the cost of 6,0134 tons of iron renewed
on the E. D., and 2,6894 tons on the W . D .; besides 63,740 and 56,105 ties laid
in the divisions respectively within the year. These, with the cost of washers,
track bolts, chairs and spikes, and the increased cost of running the trains
over the Indianopolis and Cincinnati Railroad from North Bend to Lawrenceburg, incident to the loss of the bridge over the Miami, makes a total of §565,565 70, swelling the expenses that amount. There is also included in the ex­
penses the cost of road, coals and cross-ties on hand Jan. 1, 1867, §133.200 20.
The gross earning3 of the road, by months, are shown in the following table 1806.
January............
February.................................
March......................................
April........................................
May........................................
Jane........................................
July.........................................
August....................................
September..............................
October...................................
November...............................
December................................

Passengers.
$146,604 30
127,961 52
178,775 75
142,437 97
138,432 53
114,810 27
120,006 18
119,843 98
117,819 29
136,434 32
116,965 28
155,449 04

Freight.
$100,802 00
104,622 31
130,344 34
103.830 25
132,066 96
122,199 80
116,467 86
173,SS0 56
145,446 35
160,482 91
170,384 25
113,948 71

Express.
Mail.
Total.
$8,451 19 $5,683 34 $267,54 ! 43
7,842 35
5,683 34 246,109 52
11,432 78
5,683 34 326,236 21
25,472 OS
5,683 34
277,423 64
6,957 52
5,( 83 34
2S3,130 35
10,225 17
5,6S3 34
253,924 58
5,044 90
5,683 34 247,262 28
6,045 70
5,6S3 34
305,453 58
9,752 OO
5,683 34 278,700 78
8,161 71
5,683 34
310,762 28
9,392 93
5,683 34
302,425 80
6,531 96
5,6S3 34 2S1.613 05

Total 1866 ...........................$1,615,596 43 $1,581,476 10 $115,310 89 $68,200 OS $3,380,583 50
Total 1865 ............................ 2,149,992 82 1,458,557 43 116,255 24 68,199 96 3,793,005 45
Decrease........ ........................
$534,396 39 $ ...............
Increase..................................... ................
122,918 67

$944 35
..............

$ ............ $412,42195
0 12
..............

MORRIS CANAL AND BANKING COMP A N T .

The fiscal year of this Company closes on the 28th of February. The fol­
lowing statement shows the results of operations for the last five years:
1862-63.
1863 64.
1864-65.
1865-66.
1S66-67.
Canalopea ........................................ (264 days.) (265 days.) (261 days.) (258 days.) ^(222 days.,
Tonnage ........................................... (712,0181.) (718,5191.) (723,9271.) (716,537 t.) (889,220 t !
Tolls, & c.......................... ..................$303,151 39 $374,601 76 $590,393 26 $600,584 30 $616,350 36
Current interest...... ...............................................
7,391 69
6,994 67
S,167 76 10,033 22
Total earnings..................................$303,154 39 $381,993 45 $597,387
Repairs of works .............................. $79,S57 14 $103,0.35 58 $159,995
Operating canal..................................
33,268 22 37,712 83 48,497
Salaries, &c.........................................
21,062 30 27,643 93 32,289
Transportation exp...........................
1,636 85
1,823 87
2,669

93$608,752 06 $626,3S3 5
69 $178,697 27 $235,30551
92
58,290 47 79,23941
61
42,949 16 31,28691
16
895 43
7,56150

Total expenses.............................. $135,814 51 $170,221 21 $243,452 38 $281,032 33 $350,413 41
Nett earnings.................................... $167,339 83 $211,772 24 $353,9*5 55 $327,719 73 $275,970 17
Balance from last y 'r.........................
12,720 76 10,108 21 16,490 94 90,919 57 117,351 97
Total means .... ............................. $180,060 64 $221,SS0 45 $370,426 49 $418,639 £0 $393,322 1 „

4

From this was disbursed as follows, v iz.:
Divid’nds pref. stock............ ........... $117,500 00 $117,500 00 $117,500 00 $117,500 00 $117,500 OO
.........................................

Interest on bonds.................
Boat loan, bonds..........
bought & cancelled..........
Depreciation o f boat..........
stock................................ .............

11,142 43

Bal. at close o f year............. ............

10,108 21




35.875 Oft

IftiK ftft Oft

102.500 00

82.0 00 OO

44,340 0>

45,330 00
11,902 96

45,660 00
9.93S 49
24,963 12

55,334 72
5,89^ 59
22,869 02

2,773 96

725 72

11,000 00
7,G74 CO
16,490 94

90,919 57 117,351 97

1,526 82
27a 69
9G,914 14

1867]

461

RAILROAD REPORTS,

The financial condition of the company on the 1st March, yearly, is shown in
the statement which follows :
1S63.
1S64.
1865.
1866.
1866.
^
^
Cost o f works, &c.............................2,925,489
Cash................................................... 10,326
Bills, accounts, &c.......................... 24,522
Materials...........................................
12,518

71 2,9737029 39 3,002,'205 17 3,110,679 59 3,269,75013
00
10,084 56
24,524 05 35,01145
64,151 96
68 15,241 82 60,151 52 56,130 65 61,661 85
04
8,623 08
10,059 71
7,3S7 66 21,05511

Total.............................................. 82,972,857 03 3,006,981 85 3,090,940 45 3,209,209 35 3,416,625C5
Stock-con * delated........................... 1,025,000 00 1,025,000 00 1,025,000 00 1,025,000 00 1,025,00000
“ -preferred.................................1,175,000 00 1,175,000 00 1,175,000 00 1,175,000 00 1,175,00000
768,25000
Mortgage bonds................................ 727,250 00 750,000 14 761,250 00 761,250 00
Boat lean bonds...........................................................................................
99,852 50 232,087 50
Current Liabilities............................
35,498 82
40,240 91
44,770 88
30,754 88
119,37325
Profit and loss...................................
10,108 21
16,490 94
90,919 57 117,351 97
96,91430
Total............................................ $2,972,857 03 3,00G,9S1 85 3,096,940 45 3,209,209 35 3,416,625 OS

CAMDEN- AND AMBOY AND NEW JERSEY RAILROAD

COSBOLIDAXIOM.

The first joint report of the consolidated companies— The Camden and Amboy
R.R. Company— The Delaware and Raritan Canal Company, and the New
Jersey R.R. Company— has been made to the stockholders, from which it appears
that the three corporations, although preserving distinct organizations, are
united in interest, and have one general management by officers of the consoli­
dated association. We have compiled the following statistics as to the condi­
tion of the companies Jan. 1st, 1867, and their operations in 1866, from the re­
port. The Delaware and Raritan Canal and Camden and Amboy R.R. are known
as the “ old joint companies.”
Del. & Camd. &
Old
New
Phil. &
Raritan Amboy “ Joint
Jersey
Trenton
Stock and Debt .
Canal.
R.R. Compan’s.” R.R.
R.R.
Total.
Full paid stock......................... $2,521,300 85,000,000
.......... $5,000,000 $1,090,120 $13,620,420
Less held by associated co’s.............................................................................................
645,000
$12,975,420
Scrip stock 25 p. c. pa d issued
bv o ld ui’int c’rap’n’ s,” Jan. 1
........................................................................ .
.
Undiv’d ear’gs Jan. 1st............................................ 1,072,994
657,448
565,065
Funded debt................................................................ 10,182,137

S55,000

466,112
2,295,508

$15,737,041
200,000 11,237,134

Total liabilities................................................................................................................

$26,974,178

A sS E T 4*__

Works & eq’p’s .........................$4,381,25110,099,500
............ $5,658,788 $1,675,79) $21,814,831
R.R. stocks.......................... ...................................... 2,517,065
629,245
151,455 8,297,765
R.R. bonds & advances......................................... 1,284,670
............................
1,284,670
Other accounts...........................................................
115,571
..........
........
115,571
Cash, &C.......................................................................
199,985
224,415
36,939
461,340
Total................. ......................................................... .................................................. $26,974, ITS
E arnings in 1866—
$ ........ $1,294,157
Tolls and other receipts.......... $1,294,157 $ ............
$.......
1,275,588
782,322 3,495,350
From passeng's.......................................... 1,437,440
16,437 2,128,2S7
269,768
From freight............................................... 1,842,082
38,055
544,672
225,506
Miscellaneous...................................... ...
42,306 238,805
609.067
Steam towing..............................................
609,067
382,000
From operating Ph. &>T. R .R ...................
382,000
T otal...................................... $1,294,157 $4,312,895 $238,805 $1,770,862
E xpenses in 1S66—
$9S1,S47
$243,494 $2,562,100 $52,837
Operat’g expe s.
137,327
49,033
117,019
247,409
Taxes.
.......
610,223
For stm towi’g.....................
.......
382,000
Operat’g Ph. & T. R. R —
T ota l.............................. . . . .




$360,513 83,801,732 $101,871 $1,119,174

$830,S14 $8,453,533
$659,934
37,088

4,500,214
587,878
610,223
382,000

$697,0v3 $6,080,315

462

RAILROAD REPORTS.

N et earnings...........................
I nterest paid ..........................

933,642
511,162
..........................

Total dividend fu n d ...............
T raffic —
Tons on canal............................ 2,857,244
Through pass’s...........................
Other paeseng’s .......................
Total tonnage o f freight on R.R.

[June,
651,687
55,629

136,934
633,511

139.791
16,929

2,373,218
706,069

......... .....................
.........................
8S7j862

$1,667,148

........................
2,998,452
887,862
. . .....................

689,110
4,575,424
824,895

NORTHERN CENTRAL RAILROAD.

The earnings and expenses of the Northern Central Railroad, its branches and
leased lines, for the year ending December 3 1 ,18G6, are shown in the following
statement:
Northern WiTtsv’le Shamokin Elmira Chemung Canand’
Central. Branch. Division. Division. Division. Division
(138 m.)
(13 m.)
(28 m.)
(78 m.) (22 m.) (47 m.)
$12,920 $314,484 $348,872 $39,665 $60,916
40,S98
14,028
21,010
133,145
38,385
151
16,7661
* 650
3,400
11,550 1- 2,935
7,047
8,292
2,799
7,098 J

Freight.............................
Passengers............. .......
Express............................
U. S. mails.......................
R ents.......................
Sundries............................

Gross carniDgs............. ............ $2,959,013

$27,598

$348,138

$517,531

$S0,985 $108,801

The expenses of transportation, maintenance., &c., were—
Transportation.................
Motive power..................
(.Jars...................................
W ay...................................
General....... ....................

$416,959
574,601
165,517
531,S73
31,869

$5,773
12,777
3
7,422
446

$52,992
108,923
11,536
40,324
3,972

$139,010
2S5,372
43,832
116,622
11,626

$41,041
18.331
4,235

Total expenses............. ............ $1,800,819

$26,621

$217,746

$596,462

$05,228 $167,276

Net earnings.................... ............ $1,158,194
$977 $130,391
L o s s ......................... .........................................................................

$78,931

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

$40,210
39,619
8,471
75,592
3,378

1,621

$15,757

$58,415

The following is a recapitulation of the above account of earnings and
expenses:
Earnings.
Expenses.
Mainline................................................ $2,959,012 82 $1,800,818 95
Wrightsville branch............................
27,597 85
26,621 21
Shamokin division................................
34S,13S 11
217,746 80
Elmira division ...................................
517,530 65
595,461 79
Chemung division.................................
80,984 60
65,227 43
Canandaigua division...........................
108,861 55
167,275 92

Gain.
SI,158,193 S7
976 64
330,391 31
............
15,757 17
............

Loss.

S.........
78,931 14
5S,4ii 37

Total.....................
Extraordinary expn’s.

$4,042,125 5S
............

$2,874,152 10
127,314 85

$1,167,973 48

$

Actual result.

$4,042,125 58

$2,746,837 25

$1,295,2SS 33

s

The general financial account showing the total financial operations for the
year, reads as follows :
EXPENDITURES.
RECEIPTS.
Earnings as above.......... ........... $4,042,125 f 8 Expenses as above....................... $2,874,152
433,268
Interest on v-vestments.............
5.020 12 Interest and discount..................
“
on sinking funds............
31,627 49 Dividends.....................................
361,466
27,028
Augmented capital stock............
400 00 Taxes on cap’l &divid’ ds............
Rents'of
railroads.......................
277,9S5
Sk’g f d f o r $1,500,000lo’n ............
146,945 97
103,717
Ronds o f 1900 s o l d ......................
724,500 00 Sinking funds..............................
553,S70
Cash liabilities.............................
192,114 23 Additions to property.................
Loan of Bal. <s Susq. R.R.............
150,000
City of Baltimore.........................
361,244
Total




$5,142,733 39

Total

10
79
00
79
42
49
34
00
46

; $5,142,733 39

1867]

R A IL R O A D

463

REPORTS.

The condition of the company at the close of the present year is shown in the
following abstract:
Capital stock............................... $4,518,900 00
Bonds (seeb’ndlist,p.569)............ 5,424,500 00
Bills payable................................ 1,043,743 75
Other liabilities...........................
869,S67 83
Profit andloss.............................
787,769 40

Property.......................................$10,905,750
Sinking fnnds............................
495,201
Cash...........................................
368,317
Materials and supplies...............
309,834
Bonds o f other compn's............
148,483
Current accounts.......................
417,192

Total.................................... $12,644,780 98

00
25
89
70
68
87

Total.................................... $ 2,644,780 9S

For some years it has been the policy of this company, the report say?, to
charge whatever additional equipments was purchased and put upon the road to
the ordinary working expenses, until we have an equipment now worth, at a
gold valuation, $2,132,000, instead of $1,382,000, as represented upon our
books, the difference amounting to $750,000; This, with the $787,769 already
credited to profit and loss, stows a surplus fund of over a million and a half.
Speaking of the wear of roads, the same report remarks: “ We have, in com­
mon with all the railroads of the country, suffered very much from the rapidity
with which the iron rails wear out. The average life of a rail has diminished
fully 50 per cent, daring the last ten years, they lasting now but three years.
This causes an expenditure in maintaining the road which tells severely upon
the working expenses. We are not prepared to say that the railroad iron now
manufactured in this country is inferior in quality, but in the increase of speed
by our passenger trains and the increase in weight of engines, together with
the increased tonnage, may account for their rapid destruction.”

MOBILE AND OHIO RAILROAD.

The 19th annual report of this company gives the following results of oper­
ating their road for the year 1866, which we compare with those of 1860:
Earnings from passengers......................................
“
1'reigbt.............................................
“
mails................................................
“
express............................................
Total gross earnings..............
Cost o f repairs and operating.
Earning less cost.......................
Earnings per mile o f ro a d ........
Expenses per m ile. . . . ..............
Earnings per mile run by trains.

I860.
(415 m.)
$392,247
953,030
41,925
10,654

23
91
75
BO

1866.
(486 m.)
$902,719 04
1,433,491 15
42,794 00
70,281 90

Increase.
$510,47181
475,460 24
868 25
59,627 40

$1,402,853 30
707,4S8 17

$2,449,288 09
1,390,398 46

$1,046,427 79
632,910 29

$695,370 13
3,379 00
1,704 00
1 71

$1,058,887 63
5,037 00
2,861 00
2 35

$363,517
1,658
1,1*7
0

50
00
00
64

The road commenced running on federal currency May 15.1865. The earn'
ings for the seven and a half remaining months of that year amounted to
$1,418,976 30. The earnings for the same months in 1866 amounted to
$1,496,517 86. The increase of total earnings has thus been very small, while
the receipts from freight fell from $894,541 38 in 1865 to $833,494 29 in 1866,
the cotton crop along the road having signally failed, and disappointed the
natural anticipations of a largely increased business, expressed by the President
in his report for 1865. The cotton transported on the road in 1866 was only
about one half the quantity reported for 1860.




6 '

OMMEKC'IA!

[June,

i.A'V,

I he financial condition 01 tlic company no. tot tteen materially changed since
the previous report; on Dec. 31 ifc>65; tna amount oj indebtedness, except
bonds, was $1,492,757.53; and on Dec. hi 1806
o2i 0LL.13. The changes
o the bonded debt are as folic w.

i coma bonds of 1961............
do
CiO 18IL2.............
do
do
1865.............
CO
do
1867............
clo
(Ten years)
j iret mortgage sterling*
Tenn. SState bon ds.......
do
do
do (interest funded)
Interest bonds.................................
Total........................... ............

Ain't oatsiauuin^—s /— Difference— „
JJcc. 31,
!Jcc.
InDecrease.
crease.
.865
1866.
<146,203
$85,000
$61,200
$ ......
45,000
91,OtA)
46,000
305,800
96,000
209,800
228,900
228,900
75,343
81,685
6,342
4,187,000 4,503,000
316,000
1,090,000 1,275,000 - 176,000
..........
388,800
388,S00
..........
526,300
526,300
$6,133,243 $7,230,685 $1,097,442 $ ..........

This shows that some progress has been made in funding ; but owing to the
unfavorable course of business during the past year the resumption of the pay­
ment of interest has been put off to May 1,1868, the foreign creditors having
acceded to this arrangement, with the condition that simple interest at 6 per
cent be allowed on the coupons matured, and that will mature up to Nov. 1,1867,
the company to issue for the amount, coupon bonds the same in form as the
original bonds; the coupons in the meanwhile to remain in trust as collateral
security. Regarding the home bonds, the President says—“ As the assurance
has always been given tthat bondholders on both sides of the Atlantic should
fare as nearly alike as possible, it only remains for those on this side to enter into
a similar agreement in order to close this arrangement.”

COMMERCIAL

L A W .-N ° -

33.

(Continued from page 363, vol. 56.)

FIRE INSURANCE (CONTINUED).
OF THE INTEREST OF THE

INSURED.

As to what interest in the insured is sufficient to support an insurance,
the principle is the same in fire as in marine insurance. Any legal inter­
est is sufficient. And if it be equitable in the sense that a court of equity
will recognize and protect it, that is sufficient; but a merely moral or ex­
pectant interest is not enough. So one has an insurable interest in a house
placed on another’s land with that other’s consent, but not if placed there
without license or shadow of title.
So, too, one who has made only an
oral bargain with another to purchase that other’s house, cannot insure it ;
but if there be a valid contract in law, or if by writing or by part perform­
ance it is enforceable in a court o f equity7, tho purchaser may insure. So
he may, although there be a stipulation, the breach o f which has made
the contract void by its terms, if the other party might waive the condi­
tion and enforce the contract. So, it a debtor assign his property to pay
his debts, he has an insurable interest in it until the debts are paid,
or until the property be sold. This was so held where it appeared that




1867]

C O M M E R C IA L

LAW .

465

the property would pay the debts and leave a surplus for the assignor ;
hut we should expect the same ruling where thir was not the case.
A mortgagor may insure the whole value o f his property, even after
the possession has passed to the mortgagee, if the equity of redemption be
not wholly gone. So he may if his equity of redemption is seized on ex­
ecution, or even sold, so long as he may still redeem. And in case of
loss he recovers the whole value of the building, if he be insured on it to
that amount.
A morgagor and a mortgagee may both insure the same property, and
neither need specify his interest, but simply call it his property. The
mortgagee has an interest only equal to his debt, and founded upon i t ; and
if the debt be paid, the interest ceases, and the policy is discharged; and
he can recover no more than the amount of his debt. And if a house in­
sured by a raortagee were damaged by fire, even considerably, or perhaps
destroyed, it might be doubted, on what we.should think good grounds,
whether he could recover, if it were proved that the remaining value of the
premises mortgaged was certainly more than sufficient to secure his debt,
and all reasonably possible interest, cost, and charges.
Whether he can hold what he thus receives from the insurers, and also
recover his debt from the debtor, we have considered in the article on
Marine Insurance. W e will only say, that, while recent decisions have
thrown much doubt upon this question, we are still of opinion that he can­
not do both; and that the insurers should generally be, in some way, sub­
stituted, as to his rights against the debtor, for the amount which they
pay to him.
The question might possibly arise, whether the debtor could compel or
require him to enforce his claims against the insurers, and then consider
the debt paid thereby, for his benefit; but we should hold, very confident­
ly, that he could not.
In a recent case in Massachusetts, to which we
have heretofore referred more than once, and which has been somewhat
doubted, it was held that a mortgagee who, at his own expense, insures his
interest in the property mortgaged against loss by fire, without particular­
ly describing the nature o f his interest, is entitled, in case of loss by fire
before payment of the mortgage debt, to recover the amount o f the loss
from the insurers to his own use, without first assigning his mortgage, or
any part thereof, to them. In an elaborate opinion, the court maintain
that, notwithstanding respectable authorities to the contrary, when a
mortgagee causes insurance to be made for his own benefit, paying the
premium from his own funds, in case a loss occurs before his debt is paid,
he has a fight to receive the total loss for his own benefit; that he is not
bound to account to the mortgagor for any part of the money so recovered,
as part of the mortgage d ebt; but has still a rigat to recover his whole
debt of the mortgagor. And so, on the other hand, when the debt is thus
paid by the debtor, the money is not, in law or equity, the money of the
insurer, who has thus paid the loss, or money paid to his use. Decisions
which seem to oppose this ruling may be found in Pennsylvania, in New
York, in the Supreme Court of the United States, and in England. But
tiie question is not without its difficulty.
It has been held, for strong reasons, that if a mortgagor is bound by his
contract with the mortgagee to keep the premises insured for the benefit
of the mortgagee, and does keep them insured in his own name, the




466

c o m m e r c ia l

l a w

.

[June,

mortgagee has an equitable interest in, or lien upon, the proceeds o f the
policy.
One who holds property only in right of his wife, may insure the prop­
erty, even if his wife be only a joint tenant. And a tenant for years, or
from year to year, may insure his interest, but would recover only the
value o f his interest, and not the value of the whole property.
W e have said that, generally, any one having any legal interest in prop­
erty may insure it as his own.
E jt there is one important exception to,
or modification of, this rule. By the charters of many o f our mutual in­
surance companies, the company has a lien, to the amount of the pre­
mium note, on all property insured. It is obvious, therefore, that no such
description can by given, or no such language used, as would induce the
company to suppose they had a lien when they could not have one, or
would in any way deceive them as to the validity or value of their lien.
In all such cases, all encumbrances must be stated, and the title or inter­
est o f the insured fully stated in all those, particulars in which it affects the
lien.
A trustee, agent, or consignee may insure against fire, as he may
against marine loss. Generally the consignee is not bound to insure
against fire, but may, at his discretion. If the insurance is expressly on
goods held on commission, the insurers must take notice that the owner
does not retain possession of them, and that they are to be in the custody,
and under the vigilance, integrity and care of the consignor only. He
may insure, expressly, his own interest in them for advances, or the own­
er’s interest. It has been held in a recent case, and we think on excellent
reasons, that a consignee may, by virt e of his implied interest and au­
thority, insure, in his own name, goods in his possession against fire, to
their full value, and recover for the benefit of the owner. And if the in­
terest be not expressed, the policy will be construed as not covering the
interest o f the owners, if, upon a fair construction o f the words and facts,
it seems to have been the intention o f the parties only to secure the con­
signee’s interest. And an insurance against fire upon merchandise in
warehouse, “ for account of whom it may concern,” protects only such
interests as were intended to be insured at the time of effecting the in­
surance.
It is now common for a commission merchant to cover in one policy,
in his own name, all the goods of the various owners who have consigned
to him. It has been held that the words “ goods on commission,” in fire
policies, have an effect equivalent to the words “ for whom it may con­
cern,” in marine policies. And it was also intimated, but, as we think,
on doubtful grounds, that, if the goods actually were held on commission,
they would not be covered by the policy, unless so described, although the
insured bad a lien for advances; in this case, however, the condition in
the policy excluded such goods.
A consignee of goods, sent to him, but not received, may insure his
own interest in them against marine risks, and we know no reason why he
may not against fire.
So, any bailee (which means any person to whom property has been de­
livered for any purpose), who has a legal interest in the chattels which he
bolds, although this be temporary and qualified, may insure the goods
against fire. Thus it has been held that a common carrier by land, who




1867]

C O M M E R C IA L

LAW .

467

has a lien on the goods, and is answerable for them if lost by fire (unless
it be caused by the act of God or the public enemy), may insure the goods
to their full value against fire.
The insurers must know whom they insure ; for they may have a choice
of persons, and it is important to them to know whether they are to de­
pend on the care and honesty o f this man or that man. The insured
must so describe the owner as not to deceive them on this point, and
so he must the ownership. Thus, if he aver an entire interest in him­
self, he cannot support this by showing a joint interest with another;
and if in his action he declare the latter, proof of the former is not
sufficient.
So, too, there must be actual authority to make the insurance. This
may be express, or implied, in some cases, as it seems to be implied with
the consignee, or the carrier, and perhaps, generally, with any one who
has an actual possession of, interest in, and lien on, the property. But
a tenant in common does not derive from the cotenancy authority to in­
sure for his cotenant; nor could a master of a ship or a ship’s husband,
merely as such, insure the owner’s interest against fire, any more than
against marine loss.
OF REINSURANCE.

Reinsurance is equally lawful in fire policies as in marine policies, aud
in general is governed by the same rules. The reinsurance is an insur­
ance, not of the risk of the insured, for that is a merely ideal thing; but
it is an insurance of the property originally insured, in which the first in­
surers acquire by their insurance an insurable interest. If a common pol­
icy be used, with no other change than that the word reinsurance is used
instead of insurance, all its requirements are in force. If, for example, in
cases of loss, this policy requires a certificate from a magistrate as to char­
acter, circumstances, &c., that must be furnished by the reinsured. But
if a suitable certificate were given by the party first insured to the orig­
inal insurer, and he transmit the same forthwith to those who insure him,
that is enough; and so it would be with notice, preliminary proof, and
ail similar requirements. And an insurer who obtains reinsurance is
bound to communicate (in addition to whatever else should be stated by
one asking insurance) all the information he has concerning the character
of the party originally insured; and a material concealment on this point
would avoid the policy.
As the insurer, who is reinsured, effects an insurance not on his risk, but
on the property, it seems to be very strongly held, that be recovers in case
of loss, not merely what he actually pays— although this might be an ad­
equate indemnity— but all that he was legally liable to pay. O f course,
if he has any valid defence against the party whom he insured, he must
make i t ; and if it discharges him, it destroys his claim on his insurers.
But if there-be a loss which he is bound to pay, he recovers from his in
surers the whole amount of it, whether he actually pays it or not.
A question then arises, whether, if an insurer who is reinsured becomes
insolvent, so that the originally insured does not get a payment upon his
policy, this originally insured has not a lien upon him, or a specific interest
in the policy of reinsurance. But it is held that he has not. The rein­
insured assignees, or trustees, take all that is payable under the policy of




468

C O M M E R C IA L

LAW .

[June,

reinsurance, and hold it for the creditors generally of thereinsured; and
the originally insured takes only his proper share or dividend as one of
the creditors of the first insurer.
OF DOUBLE INSURANCE.

Double insurance, although sometimes confounded with reinsurance, is
essentially different. By this, the party originally insured becomes again
insured; but by reinsurance, the original insurer is insured, and, as we
have seen, the original insured has no interest in, and no lien on, this
policy. If, by a double insurance, the insured could protect himself over
and over again, he might recover many indemnities for one loss. This
cannot be permitted, not only because it is opposed to the first principles
of insurance, but because it would tempt to fraud, and make it very easy.
The effect may be obviated in two ways, one, by considering the second
insurance as operative only on so much of the value of the property insured as
is not covered by the first; and then, as soon as the whole value is covered,
whether by the first or by subsequent policies, any further insurance has
no effect. A second way is by considering the second insurance as made
jointly with the first. Then only as much would be paid-on any loss on
many insurances, as on one only; but this payment is divided ratably
among all the insurers. All the policies are considered as making but one
policy ; and therefore any one insurer who pays more than his proportion,
may claim a contribution from others who were liable.
In this country, fire policies usually contain express and exact provisions
on this subject. They vary somewhat; but, generally, they require that
any other insurance must be stated by the insured, and indorsed on the
policy; and it is a frequent condition that each office shall in that case
pay only a ratable proportion o f a loss; and it is often added that, if such
other insurance be not so stated and indorsed, the insured shall not recover
on the policy. And it has been held that such a condition applies to a
subsequent as well as to a prior insurance, or to an insurance o f any part
of the property covered by the other policy. Nor will a court o f equity
relieve, if sufficient notice and indorsement have not been made. But it
has been held that a valid notice might be given to an agent o f the com ­
pany, who was authorized to receive applications and survey property
proposed for insurance.
In some instances the charter of the company provides that any policy
made by it shall be avoided by any double insurance of which notice is not
given, and to which the consent o f the company is not obtained, and ex­
pressed by their indorsement in the policy. But this would not apply to
a non-notice by an insured of an insurance effected by the seller on the
house which the insured had bought, if this policy were not assigned to
him.
W e have seen that several policies insuring the same party on the same
interest are taken to be one policy, and therefore a payment of more than
a due proportion gives a claim for contribution. But it seems that this
is not the case where there is a clause in the policy like that above men­
tioned, providing that only a ratable proportion shall be paid by each in­
surer. For this clause gives each insurer an adequate defence, if more
than his share be demanded, and therefore the ground of contribution




1867]

C O M M E R C IA L

LAW .

469

fails; for tlie right to demand contribution exists only when two or more
are bound severally to pay the whole, and one pays it, or more than his
his share, by compulsion, and therefore may ask the rest, who were bound
in the same way, to contribute.
It is a double insurance if both policies cover the same insurable interest,
and they are all in the name of the same assured, or perhaps, if all, or a
part, are in the name o f another, for his benefit. Insurance made by a
mortgagee, at the expense of the mortgagor, may operate as a subsequent
insurance, if the mortgagor had made a former one.
OF WARRANTY AND REPRESENTATION.

The law of warranty and representation is, in general, the same in fire
as in marine insurance. A warranty is a part of the contract; it must be
distinctly expressed, and written either in or on the policy, or on a paper
attached' to the policy, or, as has been held, on a separate paper distinct! v
referred to and described as a part of the policy. Then it operates as a
condition precedent; that is, as a condition of the policy, which if it be
not performed, the policy never takes effect; if it be not performed there
is no valid contract; nor can the non-performance be helped by evidence
that the thing warranted was less material than was supposed, or, indeed,
not material.
It may be a warranty of the present time, or as it is called, affirmative
or o f the future, and then it is promissory. And it may be, although of
the present and affirmative, a continuing warranty, rendering the policy
liable to avoidance by a non-continuance of the thing which is warranted
to exist. Whether it is thus continuing or not, must evidently be deter­
mined by the nature o f the thing warranted. A warranty that the roof
of a house is slated, or that there are only so many fireplaces or stoves,
would, generally at least, be regarded as continuing ; but a warranty that
a building was five hundred feet from any other building, would not cause
the avoidance of the policy if a neighbor should afterwards put up a house
within one hundred feet, without any act or privity of the insured. This
subject has, however, been somewhat considered under the topic o f alter­
ation.
W e have seen, that statements made on a separate paper may be so
referred to as to make them a part of the policy. And it is usual to refer
in this way to the written application o f the insured, and to all the written
statements, descriptions, and answers to questions, which he makes for the
purpose of obtaining insurance. And although there is in the decisions
some indication of distinguishing between the application itself and the
conditions on which the policy is made, we see no reason for saying that
any statements whatever, made in writing, for the purpose o f obtaining
insurance, and referred to distinctly in the policy as a part of it, and there­
in declared to be warranties or conditions on which the policy is made,
are anything less than positive warranties. But a fair and rational, or, in
some cases, a liberal construction will be given to such statements. Thus,
where a charter of a company provided that no insurance on any property
should be valid to the insured, unless he had a good and perfect and un­
incumbered title thereto, and unless the true title o f the insured be dis­
closed, and two persons made application for insurance upon a tannery




470

C O M M E R C IA L

LAW .

\June,

and the stock therein, and were insured join tly; and it turned out that
one of them owned exclusively the building, and the other exclusively oc­
cupied it and owned the stock, the insurers were held.
It is quite certain that the word warranty need not be used, if the lan­
guage is such as to import unequivocally the same meaning. And an
indorsement made upon the policy before it is executed may take effect as
a part of it.
A statement may be introduced into the policy itself, and be construed
not as any warranty, but merely as a license or permission of the insurers
that the premises may be occupied in a certain way, or some other fact
occur without prejudice to the insurance.
A representation, in the law of insurance, differs from a warranty, in
that it is not a part of the contract. If made jtfter the signing o f the
policy or the completion of the contract, it cannot of course affect it. If
made before the contract, and with a view to effecting insurance, it is no
part of the contract; but if it be fraudulent, it makes the contract void.
And if it be false, and known to be false by him who makes it, it is his
fraud. To have this effect, however, it must be material; and there is no
better test or standard for this than the question, whether the contract
would have been made, and in its present form or on its actual terms, if
this statement had not been made and believed by the insurers. If the
answer is, that the contract would not have been made if this statement
had not been made, it is material, otherwise not. The general rule is,
that the statements in the application on a separate sheet have the effect
only o f representations, and do not avoid the policy unless void in a mate­
rial point, or unless the policy makes them specially a part of itself, and
gives them the effect of warranties.
A representation may be more certainly and precisely proved if in wri­
ting, but it will have its whole force and effect if only oral.
In some instances, by the terms o f the policies, any misrepresentations
or concealments avoid the policy. And it is held that the parties have a
right to make such a bargain, ancl that it is binding upon them ; and the
effect of it would seem to be to give to representations the force and influ­
ence of warranties.
*
There seems to be this difference between marine policies and fire pol­
icies. In the former, a material misrepresentation avoids the policy,
although innocently made; in the latter, it has this effect only when it is
fraudulent. This distinction seems to rest upon the greater capability,
and therefore greater obligation, of the insurers against fire to acquaint
themselves fully with all the particulars which enter into the risk. For
they may do this either by the survey and examination of an agent, or by
specific and minute inquiries. If a warranty is broken, however innocent­
ly, it avoids all policies, whether material or not.
The question whether a statement which is relied upon as a representa­
tion be material, and whether there is or has been a substantial compli­
ance with it (for this is all the law requires), seems to be for the jury
rather than for the court. But it is not umfrequently determined by the
court, as matter o f law. And if the jury find the representation to be
materia], and to be false, the consequence follows as matter of law, and
the policy is avoided.
Concealment is the converse of representation. The insured is bound to




1867]

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471

state all that he knows himself, and all that it imports the insurer to
know, for the purpose of estimating accurately the risk he assumes. A
suppression of the truth has the same effect as an expression of what is
false. And the rule as to materiality and a substantial compliance is the
same. And we know no reason why the distinction above mentioned
between fire policies and marine policies as to representation, should not
be made, for the same reason, in regard to concealment. Indeed, in one
respect adjudication has gone somewhat further. Where the by-laws of a
company provide that a surveyor should always examine, report, etc., and
there was a material concealment by the insured, the court say it was the
duty of the insurers to examine'for themselves, and their neglect shall not
be permitted to operate to the injury of the insured; and the judge, de­
livering the opinion, adds: “ I will never agree to extend to them (mutual
fire insurance companies) the law as it has been settled in cases of marine
insurance.”
In another case, the plaintiff owned one of several warehouses, next but
one to a boat-builder’s shop which took fire, and on the same evening,
after it was apparently extinguished, sent instructions to his agent, bv ex­
traordinary conveyance, for insuring that warehouse, without apprising
the insurers o f the neighboring fire. It was held that, although the
terms of the insurance did not expressly require the communication of this
fact, the concealment avoided the policy. In another, where, pending the
negotiations for a policy, the insurers expressed an objection to insuring
property in the vicinity o f gambling establishments, and the applicant
knew at the time that there was one on the premises, it was held that, if
in the opinion of the jury the risk was materially increased by such
occupancy, the policy should be avoided. So it seems that the fact that a
particular individual had threatened to burn the premises in revenge for a
supposed injury, should be disclosed to the insurer. And eVen the rumor
of an attempt to set fire to a neighboring building should be communi­
cated ; because the insurer should be informed of any unusual fact, or any
use of the building materially enhancing the risk.
Where the plaintiffs underwrote a policy on the household goods and stock in
trade of a party, and after being informed that the character of the insured was
bad, that he had been insured and twice burnt out, that there had beeu difficulty
in respect to his losses, and he was in bad repute with the insurance offices,
effected a reinsurance with the defendants without communicating these facts,
and the property insured was shortly aft r destroyed by fire; it was held that
there had beeu a material concealment, which avoided the policy, aud whether
occasioned by mistake or design was immaterial.
A pending litigation, affecting the premises insured, and not communicated
will not vitiate the policy.
Insurers must be understood as knowing all those matters of common informa­
tion, that are as much within their reach a a in that of the insured; and these
need not be especially stated. But any special circumstance, as a great number
of fires in the neighborhood, and the probability or belief that incendiaries were
at work, should certainly be communicated; and silence on such a point—
especially if the place of business of the insurers was at a considerable distance
from the premises—would operate as a fraud, and avoid the policy. And any
questions asked must be answered, and all answers must be as full and precise as
the question requires. If there were a provision in the policy, that a certain
fact, if existing, must be stated, silence in reference to it would be fatal, however
immaterial the fact. Concealment in an answer to a specific question can seldom
or never be justified by showing that it was not material. Thus, in general,




472

c o m m e r c ia l

c h r o n ic l e

a n d

r e v ie w

.

[

June,

nothing need be said about title. But if it be inquired about, full and accurate
answers must be made.
Where the insurance company has, by the terms of the policy, a lien upon or
interest in the premises insured, to secure the premium note, here it is obvious
that any concealment of encumbrance or defect of title would operate as a fraud,
and defeat the policy. But in all such cases it is probable that specific questions
are put respecting the estate and title of the insured.
A requirement that all buildings standing within a certain distance of the
property insured should be stated, might not always be considered as applicable
to personal and movable property. Still, an insurance of chattels, described as
in a certain place or building, would be held to amount to a warranty that they
should remain theie ; or rather it would not cover them if removed into another
place or building, unless, by some appropriate pbraseology, the patties expressed
their intention that the insured was to be protected as to this property wherever
it might be situated. It is not uncommon to insure goods in course of transit
against fire; but them it is usual to name the places from which and to which
the goods are passing.

COMMERCIAL CHRONICLE AND REVIEW.
Public Debt Statement—Necessity for Publicity—Large Balance of Currenci-—Business for
May—Monetary Affairs—Movement o f Coin and Bullion—Prices of Gold—Coarse of Govern­
ments, Exchange, etc.

The advantages of publicity in reference to the doings of the National Treas.
rny have just received a conspicuous illustration. For some weeks past indica­
tions of a positive character seemed to show that currency was being withdrawn
from the circulation and locked up in Treasury vaults to so large an extent, and
with such rapidity, that the withdrawal cramped business, checked the symptoms
of recovery which were making incipient efforts to develop themselves, and at
almost any other time of the year might have produced a temporary panicThe proofs that something wroDg was going on were talked over in financial
circles, and they were freely canvassed by the press ; but if we had had no such
means of auditing Mr. McCulloch’s accounts as the monthly debt statement
affords, we should still have been comparatively in the dark. As it is we know
pretty fully the extent of the mischief; and in this case as in ten thousand
others, to know the evil is to cure it. Rarely, indeed, have the doings of the
Treasury for a single month presented so many serious anomalies, or been so diffi­
cult of vindication. By our comparative tables which occupy their usual place
on another page, it will be seen that the currency balance in the Treasury has
increased 838,827,606, or more than a million a day on the average. The
paralysis produced iu business by locking up currency in large amounts, and
suddenly abstracting it from the current of the circulation, have been often shown
since the memorable occasion when Mr. Chase in 1864, “ to knock gold down,’>
was induced against his better jad-ment to adopt this mischievous expedient
-and brought on a panic in which more than a hundred millions of private
property are estimated to have been sacrificed. The influence conferred by the
control of the volume of our paper money, and the absolute power it gives over
the movements of business, the course of prices, the fortunes of private citizens




1867J

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R E V IE W .

473

the rise or fall of stocks, produce, merchandise of every kind—all this power is
too much to be placed in hands where it can be exercised even for a few weeks
in secret. The eye of the public should be ever on the movements of the cur­
rency, the increase or decrease which constitute, as it were, the thermometer of
prices, the regulator of values, the standard measure controlling all exchanges
between buyer and seller.
But the value of publicity is only one of the lessons taught us by the June
statement of the National debt. The current of the circulating money having
been depleted some 40 millions—how has it been done ? The taxes paid into the
Internal Revenue Department were not sufficient, if not a dollar had been dis­
bursed. How, then, has Mr. McCulloch effected the transfer of 40 millions from
the pockets of the people to the vaults of the Treasury ? A glance at the official
table answers the question. He has converted and sold for cash more than 61
millions of Five-twenty bonds, and has sold them at a low price in order to
attract buyers, and tp get rid of them at the average of two millions a day. He
has made a concession in price in order to stimulate purchases. That the Secre­
tary has sold these bonds for less than they would have fetched if they had not
been hurried into the market is proved by the fact that during the three or four
days which have elapsed since he stopped selling, the price has gone up -J- per
cent. This ^ per cent might apparently have been gained for the Treasury had
not so much urgency been used in getting in the currency rapidly, and had the
sales of the new Five-twenty long bonds been allowed to run on gradually to 40
or 45 millions, to correspond with short obligations withdrawn, instead of being
forced up to the extraordinary figure of 61 millions in four weeks. Thirdly, we
may enquire why this sacrifice has been submitted to. For what purpose has so
much currency been hoarded up by a costly and mischievous process ? To what
pressing emergency is it due that not only 8 per cent interest is paid for immense
sums of money to be kept idle in the Government coffers, but that the ordinary
balance is swelled by the sale of bonds for cash at a sacrifice ? The accumula­
tion cannot be necessary for the extraordinary payments on account of Com­
pounds and Seven-thirties. For, as we showed last week, these payments during
tne entire months of June and July will require but 40 millions, all of which
Congress was careful to provide for by directing that the annual taxes should be
paid earlier than usual this year. W e do not offer any explanation of the
problem. The following extract from the New York Times gives a fair view
of what is thought of the affair by those who usually approve and support Mr.
McCulloch’s general policy:
The finances of the month have the appearance of gross improvidence, eventuating
in a currency balance at the close of the month almost double that o f the 30th
April__the result,, we take it, of large sales of United States Five-twenties in the
fxcess of the ability of the Treasury to re invest the proceeds in Seven thirties or
Compounds. The difference is over twenty millions, and the effect has fallen chiefly,
week by week, on the New Tork money market, and in a two-fold measure—first,
by locking up this excess in the currency in the Treasury, and secondly by making
the brokers in the public funds, both great and small, the principal borrowers of
money at bank and on the street, at extreme rates of interest, in their extreme com­
petition as buyers at the Treasury, and their anxiety to turn a trifling rate of commis­
sion on large sums. That this state of things should not have been realized at Wash­
ington until the close of the month, or rather until the very day (June 3 or 4) of




30

474

C O M M E R C IA L

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R E V IE W .

[June,

making up the monthly schedule of the public debt, is not only surprising, but the
subject of mortification, we have no doubt, to the Secretary of the Treasury, as
well as a useful lesson for his future government in funding his temporary obliga­
tions. W e feel quite sure the blunder will not be repeated, and to guard more
strictly against its recurrence, it is to be hoped that lesB latitude will be allowed in
future as between the daily sales or engagements and exchanges o f the Five-twenties,
and the purchase and exchange of Seven-thirties and Compounds. The eager and
persistent applications of the brokers in government securities in May, to engage the
Five-twenties in advance of their own sales, have undoubtedly wrought the present
discrepancy. It was not the result of favoritism as between tbe large and smaller
brokers in government securities, we dare say. It is more likely that the excessive
sales of Five-twenties were run up by the anxiety of the officials of the Treasury to
accommodate all parties, and to avoid even the semblance to partaility.

We repeat that we do not venture any solution of our own to this singular
anomaly. It is well that by the publicity to which the Treasury doings are
subjected the mistake was so soon discovered, and that the unnecessary mischief
which might otherwise have been done has been averted.
The course of business during May has varied but little from what we have
noted during several months past. Trade has been generally depressed, and the
results of operations unsatisfactory. Merchants are beginning to comprehend
that the present state of business is due, in a great part, to a general reaction
from high prices, and are adapting their operations to the existing position of
affairs, buying with extreme caution and carrying the lightest possible stocks.
The tendency of this course of action is, evidently, to further precipitate the decline in prices; and on maDy classes of merchandise, especially dry goods, that
result has been more or less observable.
Monetary affairs have, daring the greater part of the month, shown a very
decided tendency toward ease. There has been a steady flow of currency from
the interior, and capital which has left active employment, owing to the risks
peculiar to the times, has sought temporary investment in the public funds,
can ing an unusual firmness in National securities. But for the operations of
the Treasury, this movement must have produced an extreme ease in money.
The following are the rates of loans and discounts for the month of May :
KATES OF LOANS AN D DISCOUNTS.

May 10. May 17.
May 3.
May 24. May 31.
4 @ 5
4 @ o
i @ 5 4 (5) 5
Call lo a n s .............................. 4 @ 6
0 @ 7
Loans on Bonds and M ortgage.... 6 @ 7
6 @ 7
6 @ 7
6 @ 7
6 @ 7
A 1, endorsed bills, 2 m o s ......... . H @ 7
6 @ 7
6 @ 61 6 @ 61
Good endorsed bills, 3 <
fc4 m o s . .. 7 i@ 8 « i @ 71 6|@ 71 6i@ 71 6 }@ 71
“
“
single names.. 8 @ 9
8 @ 9
8 @ 9
n@ 9
71@ 9
Lower grades ......................... .10 @18 10 @15 10 @15 10 @15 10 @15

The Secretary of the Treasury, however, in preparation for the semi-annual
interest on the June and July series of Seven-thirties, and for the redemption of
June and July Compound Notes, has found it necessary fo largely increase its
balances by the sale of bonds of Sixty-five and of goid. In consequence of these
operations, the balances in the Sub-Treasury have, increased from $113,000,000
on May 1 to $130,000,000 on the 30th; which, considering that about §18,000,000 of coin interest has been paid out, while probably only $5,000,000
of the customs receivable have remained unsold, would show that nearly $30,000,000 of currency has been taken from circulation into tbe Treasury. This




1867]

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475

R E V IE W .

movement has caused at the end of the month a partial stringency, and the rate
on demand loans closes at 6@7 per cent. There has been considerable irregu­
larity in connection with cotton bills, some important houses in that trade, on
both sides the Atlantic, having failed ; while there is much protested paper of
firms not yet announced as having actually suspended. This condition of things
appears to be due, to a large extent, to the reported refusal of the Bank of Eng­
land to discount American cotton paper, a course which it is difficult to explain
simply on grounds of banking prudence, but which may perhaps be accounted
for from a peculiar regard in the Bank direction for Manchester interests.
The gold premium has been, upon the whole, firmer than last month. The
balance of current maturing obligations has been against the United States,
principally, it would seem in consequence of the payment of the Five-twenty
coupons due to foreign holders, and over eight millions of specie have been ship­
ped during the month. The demand for export has been partially met by sales
from the Sub-Treasury; but still the premium has advanced from 135 at the
opening of .May to 138|- later.
The imports and exports of coin and bullion at the port of New York for
the first quarter of the current year, and for the months of April and May, and
since January 1, have been as shown in the following statement.
IMPOST AND EXPORT OF COIN

AND BULLION.

First

Since

Receipts from California..............................
Imports from foreign ports............................

Quaiier.
§6,109,861
409,071

April.
$3,149,654
271,710

May.
Jan. i.
$1,181,128 $10,440,643
376,725
1,057.512

Total receipts .......................................
Exports to foreign ports............................... .

$6,518,038
6,566,958

$3,421,364
2,261,283

$1,557,853 $11,498,155
9,043,154 17,871,395

Excess o f imports............................................
Excess o f exports...........................................

........
$48,020

$1,160 081
..............

$ ___
7,tS5,301

$ ..........
6,373,210

The following statement shows the amount of receipts and exports in May
and since January 1, for the last seven years:
.—California Receipts—, .—Foreign Imports^ .—Foreign Exports-^
May. Since Jan. 1, May. Since Jan. 1.
May. Since Jan. 1.
1867 ...................................$1,181,128 $10,440,643 $312,000 $992,787 $8,307,000 $17,135,241
1866 ................................... 3,992,148 14,578,574
393,073 1,085,637 23,744,194 29,891,474
1865 ................................... 1,257,651
8,191,843
177,035
815,791
7.255,071 12,716,2.8
1864 ...................................
933,770
5,089,620
660,092 1,280,283
6,460,930 22,619,612
1S«J...................................
776,122
6,487,737
197,217
743,771
2,115,675 19,264,1S9
1862 ................................... 1,939,771
10,070,968
110,388
450,532
5,164,636 18.108,737
1361 ................................... 1,977,877
15,118,025 3,486,812 20,522,515
128,9 0 3,005,196

The movement of specie at this port during the month shows that six millions
have been received from unreported sources, the bulk undoubtedly having been
derived from sales of gold by the Treasury. For the first five months of the year
the movement shows a supply from sources of which there is do record, amount­
ing to §32,727,232, most of which, it is to be presumed, has come from (Jovernment sales.
GENERAL

MOVEMENT OF

COIN AND BULLION.

1st quarter. April.
May. Since Jan.1.
In banka near 1st.................................................. $13,185,222 $8,522,609 $7,404,304$13,185,222
Rece'pts from California........................................
6,109,861 3,149,654 1,181,128 10,440,643
Imports of coin and bullion...................................
409,077
271,710
376,725 1,057,512
Coin interest p aid .................................................
10,838,303
247,626 16,308,317 27,394,240
Total reported supply....................................




$30,542,463 $12,191,599 $25,270,474 $52,017,623

476

C O M M E R C IA L

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\J L ille ,

R E V IE W .

Export Of coin and bullion...................................
Customs duties.......................................................

$6,566,958 $’ ,561,533 $D.043,154 #17,871,395
33,170,6/8 9,511,075 9,634,697 52,316,400

Total withdrawn............................ ................

*39,737,586 $11,772,358 $18,677,851 $70,187,895

Derived from unreported sources ......................

$ .........
11,195,123
8,522,(509

$17,717,732 $6,985,003 18,024,437 $32,727,232

----4--------------Wednesday........
Thursday............
Friday................
Saturday.............
Suuday ..............
Monday...............
Tuesday..............
Wednesday........
Thursday............
Friday.................
Saturday.............
Sunday...............
Monday.............
Tuesday.............
Wednesday........
Thursday...........
Friday................
Saturday............
Sunday...............
Monday.............

O

03

Closing.

Date.

1 Lowest

COURSE OI* GOLD AT NEW YORK, MAY,

tL
*2
o

$419,241 $6,592,623
l*',110472
7,404,304 14,617,060 14 617,060

1807.
be
oa
a
O

Date.

Lowest.

Excess of reported su p p ly ................. .................
Excess o f withdrawals...................... ...............
Specie in banks at close ................ .. .................

137% 137
Tuesday...............
Wednesday.......... ...22 138 137%
Thursday.............
138% 138%
Friday................. ...24 138% 137%
.. 25 137% 137
...26
Monday............... ...27 136% 136%
Tne.-day............. ...28 136% 136%
Wednesday.......... ...29 137 137
Thursday............. ...30 137% 137%
Friday................. ...31 136% 136%

135,% 135
135% 135%
135% 135%
136% 135%

135%
135%
136%
136%

135%
135>8
136%
136

135%
137%
13814
138%
136%
136%

i35%
137%
137%
136%
136%
136%

137%
138%
138%
138%
137%
136%

137%
137%
137%
137
137%
135%

135%
135%
136%
137
137%
137%

135%
135%
136%
137
136%
136%

135% 135% May.. .1867..........
1*37% 137%
“
1866..........
137% 13674
“
1865..........
137% 137%
“
1864..........
137% 137%
“
1863 ........
“
1862..........
137% 136%

135% 135
125% 125%
145% 128%
177 168
151 143%
102% 102%

m k 136% 137% 137% S’ce Jan. 1,1867..

ra
tX)

be
C
*1
c
O

187%
138%
138%
188%
13714

13754
138%
138%
137%
137

137%
137%
137%
137%
137%

137
136%
137%
187%
130%

138% 136%
141% 1140%
145% 137
190 190
154% 145
104% 103%

132% 132% 141% 136%

Business at the stock boards lias been dull, and lower prices have prevailed.
There has been a marked absence of that interest in speculative operations by
the outside public which generally exists at this period of the year, and transac­
tions have been almost entirely on brokers’ own account. The total number of
shares sold at both boards, during the month, has been 1,678,699, against
2,113,581 for April, and 2,514,451 for May, 1866.
1867.
January. February. March. April.
Mav.
5 mo-.
Bank shares......................................
2,461
1,929
3,425
3,518
4.C51
15,334
Railroad “
2,200,510 1,282.2511,597,017 1,8S8,205 1,468,041 8,426.034
Coal
“
24,286
10,369
33,145
8,368
7,515
83,683
Mining
“
65,375
29,980
28,502
36,050
18,930 178,837
Improv’nt “
20,344
18,960
41,975
30,000
41,900 1 3.169
Telegraph “
49,501
33,857
34,615
57,275
42.671 217,919
Steamship" .....................................
56,504
91,618
80,561
78,037 61,180 367,900
Expr’ss&c" .....................................
4,703
6,409
6,562
12,128
34,411
64,213
VOLUME OP SHAKES SOLD AT THE STOCK BOARDS, M A T,

At Exchange Board.............................
765.359 634.121 672.926 820,157 642,614 3,535,177
At Open Board.................................... 1,658,325 841,242 1,152,876 1,293,424 1,036,085 5,981,952
Total 1867................................. 2,423,684 1,475.363 1,825,802 2.113,W 1,678,699 9,517,129
Total 1866................................. 2,459,817 1,743,431 1,968,839 1,754,439 2,514,451 10,411,377

United States securities have showed unusual activity. The amount of idle
funds coming into the market has been exceptionally large, and the owners have
shown a decided preference for Governments os a means of temporarily employ­
ing this capital. A t the same time, Five-twenties have been firm in the foreign
markets, and a moderate amount has been exported, which bas further contrib­
uted to sustain prices. From a subjoined statement it will be seen that the sales
at the Exchange show a large increase upon preceding months.
The amount of Government bonds and notes, State and City bonds, and com




1807]

C O M M E R C IA L

C H R O N IC L E

AND

47.7

R E V IE W .

puny bonds, sold at the Stock Exchange board in each of the past five months,'
end the total since Jan. 1, is given in the table which follows :
VOLUME OF BONDS, &C., SOLD AT TIIE EXCHANGE BOARD, MAY,

1801.

January. February. March.
April.
May.
5 monthsU. S Bonds............................ $6,803,300 $6,150,300 $5,689,050 $10,118,800 $16,216,800 $45,048,250
U S . Notes........................... 1,988,200 1,164,850 1,039,430 1.122,150 1,30,100 7,044,130
S.&CityB’ds......................... 2,524,800 2,422,809 3.936,500 2,117,400 2,863,300 13,S64,S0n
Co’ y Bonds............................
732,500
752,200
731,500
6S0.400
930,300 3,828,900
Total, 1867............................ $ 12,108,800 $11,090,150$11,396,480 $14,1-38,750 $ 1,150,500 $69 784,680
“ 1868............................ 12,155,700 f .822,000 10,622,S40 12,056,150 12,279,450 56,936,140

The following are the closing quotations at the regular board each Friday
of the iast seven weeks :
Cumberland Coal............
Quicksilver....................
canton Co........................
Mariposa p re f.................
New York Central..........
E rie.................................
Hudson R iver.................
Reading...........................
Michigan Southern........
Michigan Central............
Cleveland and Pittsburg.
Cleveland and T oledo___
Northwestern.................
“
preferred..
Rock Island................. .
Fort W ayne....................
Illinois Central...............

April 1?. Apr. 20. May 3.
29%
30>*
29
29%
2S%
43
44
42%
20%
97%
97%
98%
58%
633*
55>i .
91%
96%
104
102%
99%
66%
673*
68%
108%
107%
69%
70
72%
112
112%
113
83%
35%
*04
59*1
62
57%
85 3*
88%
89%
91%
93%
97%
113%
113*
11'M

May 10.
31
43
19%
97%
63%
97?*
103
67%
113
34%
60%
89%
96%
114

May 17.
‘*7
97%
62?*
100%
103
07%
109%
72%
113
:-4%
59%
88%
96%
114%

Mav 24. y ay 3 ’ .
30
25
25
43
41%
17%
97
9S%
5*?*
58%
102
200
102?*
103%
66%
68%
71%

75

31%
56%
87%
95
115

33%
57%
87%
96%
115%

The daily closing prices of the principal government securities are shown iu
the following statement :
1867.
/—6’s, (5-20 yrs.)Coupon—>i5’s,10-40yrs. 7-30s
1802. 1864. 1SG5. new. Coup.
1867.
xl07?* xl05?* x!05?* 107%
99%
107% 1053* 105% 107%
99
106%
106>*
107% 105% 105% 107%
99%
107% 105** 106
107%

PRICES OP GOVERNMENT SECURITIES AT NEW YO RK , MAY,

Day of month.
Wednesday 1............
Thursday
2............
Friday
3............
Saturday
4............
Sunday
5............
Monday
6 ............
Tuesday
7............
Wednesday 8 ............
Thursday
9 . . . , __
Friday
10............
Saturday 11............
Sunday
12 ..........
Monday
13............
Tuesday
14............
W ednescay 15...........
Thursday 10 ............
Friday
17.......
Saturday 18............
Sunday
19............
Monday
20............
Tuesday
21............
Wednesday 22............
ThursdJiy 23.......
Friday
24........
Saturday 25............
Sunday
20............
Monday
27............
Tuesday
28............
Wednesday $9............
Thursday 30............
Friday
31............
First...........................
Lowest......................
Highest ......................
R a n g e ...................... .
Latest.......................




6’ s, 18S1.—»
Coup. Reg.
... 110% 110%
110%
110%
..
110%
...

I ll

...

111%

...
...

111%
111% 111%

...

111% 111%

...
...
...

111%
111%
111%

...

Illx

,..

112

..

111%

..
..

110%
111%
111%

iii%
112 ’
m%

111%
111%
110%
110%
112
1%
111%

10 %
107%
107%
107%
108
108?*

105%
105%
105%
105%
105%
105%

1003*
106
105%
106
106
106%

107%
107%
107%
197%
107%
107%

99%
99 %
99%
99%
99%
99%

106%
l'« %
100%
106%

f09~
103%
109%
109?*
109%
103%

iwx

10-'K
105%
:05K
11 5%
105%

1*06%
106%
106%
106%
106%
106%

ins
108
108
108
1<‘8
107%

99%
95%
99%
99%

106%

109%
1093*
109%
109%
109%
109%

105%
105%
105%
106
106
105%

106%
1063*
106?*
106&
106%
106,3*

108
108%
108 3*
1081*
108%
108

109%
109%
109%
109%
109%

*05% 106% ioi%
105?* 106% 1-8%
105% H6% 10S
18
105% 106% 108

99%
99%

107%
107%
169%
2%
109%

105%
105%
106
%
105%

105?*
105?*
106?*
i%
106%

99%
99
99%
J*
99%

101%
107%
108%
M
10S

106%

99%
99%
99%
99%
99%

106%
1063*

1063*
1063*
106%
106%
106%
106%
106%
X
100%

478

C O M M E R C IA L

C H R O N IC L E

AND

\June,

R E V IE W .

The quotations for three-years compound interest note3 on each Thursday of
the month have been as shown in the following statement :
PRICES OP COMPOUND INTEREST NOTES AT NEW YORK, M AY, 1867.

Issue o f
June, 1864..........
July, 1864..........
August, 1S64___
October, 1864....
December, 1864..
May, 1865............
August, 1S65 . . . .
September, 1865.
October, 1865....

May 2.
119 @119%
118%@U8%
118 @118%
117 @117%
116 ©116%
113%@113%
112%@112%
111%@111%
111%@111%

May 9.
119 @119%
118%@US%
118 @118%
117 @117%
116 @116%
114 @114%
113 @113%
112%@112 %
112 @ 1 1 2 %

May 16.
119 ®!19%
11S%®118%
118 @118%
117 @117%
116 @116
114%@.U4%
113K@11.3X
112%@il3
li2 % @ 1 1 2 %

May 23.
119%@1I9%
118%@118%
118%@118%
U7%@117%
116X@116%
115%@U6%
114%©114%
114 @114%
113%@113%

May 30.
119X@11“%
118%@118%
116%@lle%
117%@117%
116X@1!6%
115%@115%
114%@ 114%

114 @114%
113%@113%

The first series of figures represents the buying and the last the selling prices
at first-class brokers’ offices.
COURSE OP CONSOLS AND AMERICAN SECURITIES AT L O N D O N -M A Y , 1867.

Date.

Cons Am. eecurities
for U. S. Ill.C. Erie
mon. 5-20s sh’ s. shs.

Wednesday.......... . . . . 1 (tioli day.)
Thursday............ . ... 2 91% 71%
Friday................. . ... 3 1)1
71%
Saturday .............
91% 71%
Sunday................ . ... 5
Monday............... . . . . 6 9154 7i%
Tuesday............ . . . . 7 91% 71X
W ednesday........
90% 71%
Thursday............ ... 9 91% 71%
Friday................. ....10 1)2
72%
Saturday............. ....1 1 92
72%
Sunday................
Monday............... ....13 1)2
72%
Tuesday............... ...1 4 92
72%
9‘2K 72K
....16 92MI 72j£l
__ 17 92K 72kf
Saturday ............ ....18 92% 72%

Cons Am. securities.
for U.S. Ill.C. 1Erie
mon. 5-20s sh’s. |slTs.

Date.

Sunday .................. .19
75% 42% Monday..................
Tuesday.................. ..21
76% 42
Wednesday............ ..22
75% 42
Thursday............... .23
75% 42% Friday.................... 24
75% 41% Saturday................. .25
75% 40% Sunday .................. .26
75% 41% Monday.................. .27
76
42% Tuesday................. .28
Wednesday............ .29
75% 43
Thursday............... ..30
76% 42% Friday.....................
76M 42%
76K 42
77^1 42&J
7Gi£l 42KJ
76% 42% Lowest since Jan. 1 ___

93
93
93
93%
93%
93%

72%
72 %
72%
72
72^
72%

76%
76%
76%
75%
76%
76%

42%
42%
42%
41
41
39%

93%
93%
1)4
94%
95%
—
95%
91 ”
434
90'

72%
72,^
72%
72%
72%

76
76%
76%
76%
77

40
40
40

—

—

—

39%

72M 76^ 43
71>4 75^ 39&
1 ]4 1V 35^
67% 72% 35%

The lowest and highest quotations for United States 6’s (5 20 years) of 1862,
at Paris and Frankfort, in the weeks ending Thursday, have been as follows ;
Mav 2.
Paris............................................. ©80%
Frankfort................................76%©76%

May 9.

May 12.

May 23.

76%@76%

77%@77%

76«@77%

May 30.
.@ ..
77%@77%

There has been no report from Paris since the 1st of May.
Foreign Exchange has ruled for the g. eater part of the month at the specie
shipping point. The large amount falling due on account of Five-twenty cou­
pons held by foreigners, together with the failure of Frazer, Trenholm & Co
Liverpool, have been the principal causes of the firmness of the market. To­
ward the close of the month, the market experienced some relief from the offer­
ings of bills against the sale of iron-clads to the French Government; but upon
the reduction of the Bank of England rate of interest to 2£ per cent, prime 60
days’ sterling bills advanced to 110@ i.
COURSE OP FOREIGN EXCHANGE (60 DAYS)— MAY, 1867.

Days.
1
2
3
4
5
6
7
8
9
10
11

London.
Paris. Amsterdam. Bremen. Hamburg.
Berlin,
cents for
centimes
cents for
cents for
cents for
cents for
54 pence.
for dollar.
florin.
rix daler. M. banco.
thaler.
............ 109%@109% 520 @515
40%©41% 7S%@79
36 @30% 71%@72%
............ 109%©109% 517%@5J3% 41%@41% 79 @79% 36%@3«% 72%@72%
............. 109%@100% 517%@512% 40%@41% 78%©79
36%@30% 72 @72%
............. 109%@108% 520 @515
40%@11% 78%@79% 36%©36% 72 @72%
........................................................................................................................................
.......... 109%@109% 515 @512% 41%@41% 79 @79% 3I1%@30% 72%©72%
............ 109%@109% 520 @515
41 @41% 78%@79% 36%@36% 72 @72%
............ 109%@10!l% 520 @515
41 @41% 78%@79
36%@36% 72 @72%
.......... 109%@109% 517%©515
41%@41% 78%@79% 36%@36% 72%@72%
.............. 109%@109% 515 @513%
41%@41% 78%@79% 3I>%@36% 72%@72%
............ 109%@109% 520 @515
40%@41% 78%@79% SG @36% 72 @72%




1867]

JO U R N AL

OF

B A N K IN G ,

CURRENCY,

AND

479

F IN A N C E .

13
............ 109^@109% 520 @513% 41 @41% 78%@7S>% 36%@36%
14
............ 109%@109% 512%@510
41%@41% 79 @79% 36%©36%
15
............ 109%@109% 618%@512% 41%@41% 79 @79% 36%@3S%
10............................ 109%@110 512%@511% 41%@41% 79%@79% 30%@36%
17
............ 109%@109% 512%@511% 41%@41% 7M%@7«% 36%@3S%
18
............ 109%@109% 51S%©512% 41 @41% 7»%@SU
36%@36%
19
.....................................................................................................................
20
............ 109%@109% 51S%@512% 41 @41% 79%@8.l
3S%@36%
21
............ 109%@109% 518%@512% 41 @41% 79%@80
S6%@30%
............ ll.9%@109% 518%©512% 41 @41% 79%@79% 3S%@30%
22
23
............ 109%@109% 512%@511% 41%@41% 79%@80
30%@36%
24
............ 109%@109% 512%@511% 41%@41% 79%®ti0
86%@36%
25
............ 109%@109% 517%@512% 41%@41% 79%©79% 36%@36%
26
.................................................. .................................................................
27
............ 109%@109% 512%@511% 41%@41% 79%©S0
36%@3C%
28
............ 109%@110 512%@511% 41%@41% 79%@80
36%@36%
29
............ 109%@110 512%@511% 41%@41% 79%@80
3(i%@36%
30
............ 109%@110 512%@511% 41%@41% 79%@30
3li%@36%
31 ........................... 109%@U0 512%@511% 41%@41% 79%@80
38%@36%

72%@72%
72%@72%
72%@72%
72%@72%
72%@72%
72% @72%

May...........................109%©U0
A p r ......................... 108%@10 ■%
>1ar.......................... 108 @109%
Feb........................... 108%@109
Jan.......................... 108%@109%

71%©72%
71%@72%
71%@72%
71%@72%
72 @72%

Since Jan. 1...........

108 @110

520 @510
522%@512%
525 @515
522%@515
520 @513%

525 @510

72%@72%
72%@72%
72%@72%
72%@72%
72%@72%
72%@72%
72%@72%
72%@72%
72%@72%
72%@72%
72%@72%

40%@41% 78%@80
40%©11% 7S%@79%
40%@41% 7S @79%
40%@41% 78%@79%
41%@41% 78%@79%

36 @36%
35%@36%
35%@3ti%
36 @36%
36%@36%

40%@41% 78 @80

35%©38% 71%@72%

Short Exchange on London has ranged from 110 to llO .f

JOURNAL OF BANKING, CURRENCY, AND FINANCE
Return of the New York, Philadelphia and Boston Banks.

Below we give the returns of the Banks of the three cities since Jan. 1 :
NSW YO RK CITY BAN K RETURNS.

Date.
January 5. ...
January 12.......
January 19.......
January 26 . . . .
February 2 ... .
February 9.......
Febru’ rylG.......
Febru’ry23.......
Marc i
2.......
March 9 .. .
March !6.......
March 23... .
March 30 ...
April
6 .......
April
13.......
April
20.......
April
27 .......
May
4 .......
May
11.......
May
18.......
May
25.......

Loans.
$-257,852,460
258,935,488
255,032,223
251,674,80*
‘-51,264,355
250,268,825
253,131,328
257,823,994
26 ,160,436
262,1 1,458
263.0 2,972
259,400,315
v55, .82,364
254,470,027
250,102,178
-47,561,731
247,737,381
250,871,553
253,682,829
257,961,874
256,091,805

Circulation.
Specie.
32,762,779
12,794,892
14,613,477
82,825,103
32,854,928
15,365,207
32,957,198
16,014,007
16,332,98
32,995,317
16,157,257
32,777, 00
14,79-',626
82,956,309
13,513,456
38,006,141
11,579,381
33,294,433
10,863,1-2
33,409,811
9,968,722
3 J,4vG.68'i
33.519,401
9,: 43,913
8.522,6 9
33.669,195
8,133,8U
33,774,573
8,S56,229
33.702,047
7,622,535
33,648,571
7,404,304
33,601.285
9,902,177
33,571,747
33,59o,S69
14,95 *,590
15,567,252
33,63 ,3 11
33,697,252
14,083,667

Deposits. Legal Tend’s. Ag. clear'’gs
202,533,564
05,026,121
486,987,787
202,517,608
63,246,370
605,132,006
201,500,115
63,235,3S6
520,040,028
n97,952 076
63,426,559
568,822,8 4
65,944,541
200,511,596
512,407,258
198,241,835
67,628,992
508,825,532
196,072,292
64,642,940
455,833,829
198,420.347
63,153,895
413,574,086
19S.018,914
6 ,014 195
46.*-,534,5 9
200,2-3,527
64.523.440
544,173,256
197,958,-01
62.813 039
496,558. 19
19 ,375,6 5
60,904,958
472, 02,3 8
188,48 ',250
62,459,811
459,S5o.602
1S3.861,269
59,021,775
531,835,184
182,S61,236
60,202,515
525,933,462
184,090,256
64,096,916
447,814,375
187.674 341
67,920,351
446,484,422
195,721,072
70,587,407
559,S60,11«
200,342,832
67,996,639
524 3J9,700
201,436,854
63,828.501
503,675,79o
193,673,345
60.562.440
431,732,62^

PHILADELPHIA BANK RETURNS.

Legal Tenders.
Date.
January 5 ..........
January 12..........
January 19...........
January 26.......... .................... 19,863,374
February 2 ..........
February 9..........
Febru’rylG..........
Febru’ry23...........
18,150,657
March
/ ............
March 9............
Earch 16 .......... .................. 16,955,6 3




Loans.
52,3x2.317
52.528 491
53,45: 307
52.368,473
55,55 ,180
52,384.3x9
52,573,130
5 ',394,721
51, >79,173
51.851.453
50,5 8,29-1

Specie. Circulation.
903,663
10,388,820
903.320
10,380,577
877,548
10,381,595
830.582
10,384.683
871,564
10,430,8*8
873,614
10,449,9S2
867,110
10,522,972
841,223
10,556,434
816,843
10,5 l,t,00
812,f 55
10,572,068
858,022
10,580,911

Deposits.
41,308,327
41,023,421
30.048,645
39,001.779
39,592,712
89,811.595
40,050,717
38,646,013
39,367,888
37,314,672
3 ,S2G,001

480
March
March
April
April
April
A pril
Miiy
.May
May
May

JOURNAL OF BANKING, CURRENCY, AND FINANCE.

23.. .........................
16,071.780
30 . ........................... 15,856,948
6..
13.. ............................ 16,188,407
20.. ............................ 16,582,206
27.. ............................
6,737,-01
4
......................... 17,196,558
11 .................. .
17,278,919
18.. . . ) ...................... 16,770,491
23 ...................... ... 16.019,180

807,4 3
002,148
■64,719
546 625
485,5:35
383,817
386,053
408,762
402,978
369,133

50,573,490
50.880.306
50,998,231
51.283,776
51,611,44 •
51,890,959
53,054,267
53,474.3SS
53,826.320
53,536,170

10,611,987
10,631,532
10,651,615
10,645,367
10,647,234
10,638,021
10,1139,695
10,627,953
10,630,831
10,635,520

1W a y ,
34,5-1.545
34,150,285
33,793,595
34, S27.t)S::
35,820,580
36,234,S7C
37,371,064
38,172,169
38,230,832
37,773,780

BOSTON BANK RETURNS.

(Capital Jan. 1, I860, $41,900,000.)
Legal
Loans.
Specie.
Tenders.
Deposits.
January 7 ....... .......$97,009,: 42
1,183,451
17,033,3s7
40,824,618
16.829. 45
January 14........ ...... 9s 4-1,778
L 334.300
40,246,216
16,59 ,-99
1,078,160
38,679,604
January 21 .. ........ 95,',98,982
1,058.329
16,816,481
January 28........ ___ 97.891,329
39,219,241
956,569
February 4........ . . . . 97,742,461
lti,894,604
39,708,053
Febru r y ll........ ___ 97,264.162
873,396
1 ,103.479
30,474,359
Febru’ rytS........ . . . . 90,949,4.3
929,940
15,398,338
38,900,5 0
779,4"2
Febru’ ry25......
95.33 ,900
15,741.046
37,898,963
958, S87
Mar h 4 . . . . . . . 95,05-',727
t ,9-8,103
38,316 573
695,447
15,119,479
36,712,052
March 11 . . . . . . . . ' 2.078,975
16.270,979
568,194
36,751,733
March IS...... .. . 93.156,4-6
86,7 VI.72->
516.1534
16,557,905
M»rch
5 ........ .. . 92.66!,060
April
435,113
17, 12,423
1 .. . . . . . 91,723,34
37,056,388
. . . . 91,679,549
456,7.51
April
8
16.860,418
37,258,775
376,313
37,218.525
April
5........ . .. 91,712,414
1«,815,355
. . . . 92,472,815
343,712
April 22
16.549,598
38.207.548
329,851
16.9 >6,564
Auril 29 ......... .. 92,353,922
37,837.092
6 .. .. . . . . 92,671,149
5v9,878
16.671,736
38,721,769
May
May
517,597
16,552,421
38,504,761
13........ . . . . 92,428,114
16,499,319
. ... 92,633,587
507,806
37,874.852
May
20..
441,072
16,883,361
37,132,051
May
i.7.........

CONTENTS
NO.

PAGE.

1. Mi winkle, Wisconsin
................... 409
2. Supply of Coal and other Fuels in Eu­
rope and America................................416
3. Debt and Finances of Maryland and
Cincinnati..... ...................
•• 429
4. Our Foreign Commerce—Foreign Trade 432
5 On the Collection of Revenue........... 435
6 Trade of Great Britain and the United
States.....
452

FOR

,------ Circulation-----National.
State
24.580,367
3ia.eB4
24,997,446
311,741
24.275,162
301,91]
21,716,597
302,298
24,691.075
306,014
24,686,663
305,60?
24,765,420
305.601
24,953,605
303.225
24.675,707
801,486
24,346.631
89,5 5
24,809,523
299,13?
24,738,722
29.4 09]
24,843.376
206,025
24,851,522
296,011
24,838,819
287,205
24,852,200
286,701
24,81 ,437
284,982
24 784,332
2S3,8C<
24,80992
283.514
24,838,469
283.493
24,805,860
230,96

JUNE.

NO.

tag*

7. Cleveland, Painesville and Ashtabula
Railroad............................................. 456
8. Public Debt of the United States.......... 456
9. Railroad Earnings for April................. 456
<■0. Railroad Reports ............
459
11. Coimnercitl Law, No. 33—Fire Insur­
ant e — .................................................. 464
12. Commercial Chronicle and Review__ 475
13. Journal of Banking, Currency, and
F in a n ce...;........................................ 37g

The following advertisements appear in our advertising pages this mouth:
MERCANTILE.

il ie’s Fire & Burglar-Proof Safes—198 B’ way
'owler & Wells—389 Broadway.
Prang & Co.—Boston and New York—Hol­
iday Publicat ons, etc.
toward & Co. — 619 Broadway— Diamonds,
Watcues, Holiday Gifts, etc.
[ercantile Library—Clinton Hall, Astor Place
an iE iglrhS t.
'erdinand Korn— 191 Fulton St. — Ban de
Cologne.
ewis Audendried & C o —1 0 Broadway—An­
thracite and Bituminous Coal.
'elloner’s U. S. Mercantile Register for 1S67-8.
.. B. Sands & Co.—189-141 William St.—Drugs
W . Bradley—97 Chambers St.—Hoop Skirts,
flickering & Sons—632 3roadway—Pianos.
HAXTTvRRS Sr. B R O K E R S .

Tenth National Hank—336 Broadway.
Bar-tow, Eddy & Co.—26 Broad St.
Lockwood A Co.—94 Broadway.
Y'ermilye & Co.—44 Wall St.




Eugene Kelly & Co.—36 Wall St.
DeWitt, Kittle & Co.—88 Wall St.
Simon De Visser—52 Exchange Place.
Duncan, Sherman & Co.—Cor Pine & Nassau.
L. P. Morton <fe Co.—30 Broad Street.
Robinson & Ogden—4 Broad St.
Howe & Macy—30 Wall St.
Gilmore, Dunlap & Co.—Cincinnati.
Lewis Johnson <fe Co., Washington.
Ninth N tional Bank—363 Broadway.
in s u r a n c e .

New York Mutual Insurance Co—61 Willi m sti
Fidelity Insurance Co.—1. Bro idway.
Marine—Atlantic Mut. ml Ins. Co.—51 Wall St.
Mercantile Mut.Tns. Co.—£5 Wall St.
Orient Mutual Ins. Co.
Sun Mutual Ins. Co.—49 Wall Sr.
Great Western Insurance Co.
Fire—Hope Fire Ins. Co.—92 Broadway.
Germania Fire Ins. Co.—175 Broadway.
iEtna Insurance Co.—Hartford.
U. S. Life Insurance Co.—40 Wall St.