Full text of The Merchants' Magazine and Commercial Review : May 1869, Vol. LX, No. V

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AND

COMMERCIAL REVIEW,
WI LLI AM

B.

D A NA

PUBLISHED MONTHLY.

V o l.6 0

M A Y , 1869

NEW Y O R K : W ILLIAM B. DANA, PUBLISHER AND PROPRIETOR.

Nos. 79 & 81 W illiam St., New York.
Lohmom.' S a m p s o n L ow , Son & Co., 47 L sb o a t i H ill




and

T b u bn ib & Go., 90 P a t s b v o s t x b B ow

HUNT’S

MAGAZINE

MERCHANTS
AND

C O M M E R C I A L

R E V I E W .

E DITED B Y W IL L IA M B. DANA.

Price $5 per Annum.
PUBLISHED ON THE 12th OF EACH MONTH.

C O N T E N T S

OF

M A Y

.

M A G A Z I N E .

T he D eoline in B readbtuffs and the G knhbal T eade of the Country ........... ............ 3 1
T he Y angtze K iang ........................................................................

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

324

E nlargement of the N ew Y ork C anals ..................................................................................... 326
Mr . B ouiwell and our F inances....................................................................................................

387

R ailroads of the W orld ( close of 1868) . .

339

.

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

A spects of our D omestic and F oreign T r a d e ..........................................................................

340

P ublic D ebt of the U n itid S t a t e s ................................................................................................ 343
N ew Y ork S tate

R ailroads ........................................................................................................

344

Civ il S ervice — T he V iew s of Mr . J knckes on this Me a s u r e ..........................................

345

C ommissioner D elano’s D ecision U pon the T axing of Borrowed C apita l .................. 868
R ailw ay C onsolidation ...................................................................................................................
L and and W ater C arriage
T he F inancial

370

.............................. .......................................................................... 873

ituation ............................................................

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

875

W atering R ailroad S tocks ...............................................................................................................

377

C leveland , C olumbus, Cincinnati and I ndianapolis R a il w a v ............ ................................

380

R ailroad E arnings
R ailroad I tems

.

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

.................... ........................ 3S2

............................................................................................................................... 3 3

C heap T ransportation . . . . ...............................................................................................................

385

T he B ank R eports and the. i ate S tr in g e n c y ......................................................................... 887
N orthern C entral R ailroad ..........................................................................................................

389

D etroit and Milwaukee R ailroad ............................................................................................... 390
N ortheastern R ailroad i f S outh C arolina ............................................................

....

L ake Shore R ailway Company ..................................................................................................
C ondition of the National Banks of the C ity of N ew Y o rk ................

3‘I

. . 393

....................... 394

C ommercial C hronicle and R eview .................. ............................................................................... i9 5
J ournal

f

B anking, C urrency and Finance ............................................................................ 40 0




N

T II R

MERCHANTS’ MAGAZI N E
AND

C O M M E R C I A L

M A Y ,

R E V I E W

1 8 6 9.

THE DECLINE IN BREADSTUFFS AND TIIE

GENERAL TRADE

CF TAB

COUNTRY.
The late heavy decline in the value of breadstuffs, though attended
■with results not immediately welcome to some interests, is yet one o f the
most auspicious features connected with our national industries that has
occurred since the war. H igh prices of food mean high prices for pro­
ducts generally; for the reason that the cost o f human sustentation regu.
lates the cost of labor, and the cost o f labor determines that of products.
While, therefore, food was high, we could not have a healthy condition in
the industries at large. Natural law, however, ultimately adjusts all in­
dustrial irregularities; and the late high prices o f grain were infallibly
prophetic of the lower prices we have now reached. If the war withdrew
an undue proportion o f population from the agricultural cla -s, rendering
farm labor scarce and the crofs light; the consequent high prices o f grain
made agriculture exceptionally profitable,inviting labor from less remun1




322

[3/ay,

THE DECLINE IN BREADSTUFFS.

erative employments, and attracting immigration from other countries.
The rapidity with which this process has worked out conspicuous results
is beyond what was generally anticipated, and illustrates the safety with
which natural causes may be trusted to remedy irregular movements in
production and commerce. The following comparison will show the de­
cline in the prices of breadstuff's at New Y o ib within the last twelve
months :
A w il 23,
Flour—
18H9.
*■u p .rfin e............................................................................... $ bl>l.$5 .-iO® 5 60
E x ra ate........................................................................................ 5 75® 6 15
Sh pp Dg ronnd h oo * i h o ...............
5 9 '® 6 40
J x tra vv estern, com on to s o d .............................................. 5 7* ® 6 00
Double E x ra W estern and St. L o u i s ........................................ 6 65(a,ll 25
Bo'ith^rn suo r s ,............................................................................... 6 2 ?® 6 65
Southern, exira tii.d fam ily............................................................ 7 00@1'- 25
C a ifo n ia ........................................................................................... 7 (H®10 CO
R ye lour, fin •. a d su p erfin e............................................................4 7 © 6 70
Corn v e a '............................................................................................. 4 20® 4 75
Wheat, s r n * ....................................................................per bu h. 1 2 s® 1 47
R e 4 Wi ter....................................................................................... 1 50® 1 60
A m ber d> ....................................................................................... 1 7 < ® 1 7 2
W ite................................................................................................... 1
2 00
Corn, W estern m x e d ........................................................................
S2®
84
Y ellow . ..........................................................................................
£5® . . . .
W h ite...................................................................................................
84®
88
R y e .............................................................................................................1 30® 1 35
Oats, W estern cargoes n e w ..............................................................
7 ;®
79

“

April $5,
18b8

$9 40®10 00
10 35® 10 85
10 50 "1 0 90
1<» 15©11 5u
11 75©16 00
10 40® 11 15
11 2 f® l5 25
12 7 ?® 4 50
8 25© 9 50
5 7 c@ 6 25
2 4 © i 7«)
. . . (a, 2 85
2 90® 3 00
3 0 © 3 40
1 l i ® 1 19

i sm 1 2t

1 14® 1 16
2 Of® 2 27
S t®
85

It will be seen from this comparison that flour and wheat are but little
more than one-half the price of a year a g o ; while other kinds of grain
also are very much lower. In passing, we may remind our readers o f cer­
tain suggestions we made last Fall, condemnatory o f the Western habit
of holding back grain before the close o f navigation, in hope o f thereby
exacting higher prices from Eastern and European consumers. The event
has proved, as we foreshadowed, that the East would live upon its limited
winter supplies and wait for the spring to determine its own prices ; and
that Europe also would be equally able to wait ; while the W est would,
in the mean time, be embarrassed by carrying a heavy load o f produce
and its dealers lose heavily by a decline in prices. It remains to be seen
whether prices are not, at the moment, exceptionally depressed. There
is not, however, any very obvious reason for anticipating any important re­
action. The class of causes which have operated to increase the produc­
tion of grain in this country have been equally influential in all the grain
growing countries of the world; and it is reasonable to assume that there
is now a larger area of land and a larger amount of labor devoted to the
production o f grain than perhaps at any former period; so that, only in
the event of adverse seasons, may we anticipate a falling off in the yield.
So far as respects the United States, the weather has thus far been favor­
able and reports indicate the probability o f ample crops. It is true that
the farmer has to pay as high pi ices for labor, with wheat at $1 35 per
bushel, as when he obtained $2 50 per bushel; and it may be that wheat




1869]

THE DECLINE IN BKEADSTUFFS.

323

growing is consequently comparatively unprofitable. It would, however,
be unsafe to conclude from this circumstance that the production of grain
will be promptly curtailed. The farmer has had a succession of profitable
crops, and he can afford to meet an adverse season. He stands com*
mitted to his extended production, having all the requisite appliances
provided, and cannot readily contract; while he naturally hopes either
for higher prices for his grain or lower prices for the labor he employs.
This changed condition of the grain trade has very important bearings
upon the condition of the general trade of the country. One of the first
results is apparently, as we noted last week, an unfavorable one. Eastern
merchants complain of difficulty in making their collections at the West,
and find the demand for goods from that section unexpectedly limited ; the
reason being very obviously that, with the reduced prices of grain, the far­
mers have to fall back upon credit, and cannot keep up their late scale o f
expenditures. This effect, however, in its turn becomes a cause, operating
directly upon the manufacturing industries. The lightness o f the W est­
ern trade is already compelling a reduction in the prices o f manufactured
goods, and many kinds of merchandise are selling at a loss to the pro­
ducer. The contraction o f the agricultural demand is such an important
element in the goods markets, that manufacturers must soon be com ­
pelled to seek compensation in a reduction of the price o f labor, or o f raw
materials, or of both. A necessity for such reduction has long been
felt; but it was in vain to ask the laborer to concede while the costs o f
living were advancing. Now, the situation is essentially changed. The
cost of the main element of subsistence has, declined nearly one-half;
fuel has fallen in nearly an equal proportion ; clothing is rapidly cheapen­
ing, and the prospects of the Southern crops encourage the hope of a cot­
ton yield which will give fresh impulse to this tendency; and although
animal food still remains high, yet the reduced profits upon grain growing
will naturally direct attention to cattle farming and increase our supply of
pork and beef. Thus it will be seen that the return o f breadstufis to com­
paratively low prices leads the way to a general reduction in the value of
all domestic products embraced in the costs of living. Under these cir
cumstances, the manufacturers will be backed by natural causes in their
efforts to secure a reduction o f wages ; and the attempt, when made, can
hardly fail to be successful.
In view of these considerations, the efforts being made in some branches
of labor to secure an advance o f wages are peculiarly ill timed ; they show
anything but an appreciation of the industrial condition of the country,
and, if successful at all, can be so but very temporarily. The operatives
of the East have for some time been demanding successive advances in
wages, to compensate them for the high prices they have had to pay the




324

THE YANGTZE KIANO.

f May

W est for its food. The West, in return, having leduced the price of its
products, now demands that the East shall charge less for its labor as
represented in manufactured goods. If the operatives were right in the
first instance; and the success of their demand proves that they w ere;
then the farmers are right in the second instance; and their demand is
equally sure of being acceded to.
The foregoing considerations throw some rays o f light upon the present
depressed aspect o f business. The quiet of trade is really, to a certain ex.
tent, an incident o f a remedial process, which must ere long work out
highly beneficial results and produce a generally sounder condition of
business. A downward course o f values is always attended with losses to
merchants, the disturbance of confidence, and a more or less despondent
feeling. The capital o f some merchants may be eaten up in the process,
and mercantile establishments may be reduced, with the indirect advan
tage o f driving a surplus o f hands from the distributing class to the pro.
ducing class. But, however, severely these results may be felt by those
most directly concerned, yet the process is highly salutary to the country
at large ; it is a recovery from disease; and its issue will be health and
prosperity.

THE YANGTZE R1ANG.
There is in Asia a river which, though named b y a people who
delight in high sounding titles, is yet more modestly designated than
our own noble Mississippi, which we have named the “ Father o f W a ­
ters.” The Chinaman, less pretentious for once, merely claims that
the Yangtze Kiang is the “ Son o f the Ocean.” A reference to the map
will show that, in the distance traversed, and in the extent of country
crained, the advantage, if any, is in favor o f the Yangtze; while the
population living on its banks outnumber the dwellers on the Missis­
sippi, as 100 to 1. O f this great river until recently we knew literally
nothing. Recent explorations and travels have taught us that the river
proper is navigable more than 2,000 miles trom the sea, and that its
branches water a country extending between the 25 h and 36th paral­
lels of latitude, and the 80th and 122d meridians, comprising an area
of over 1,300,000 square miles, and subsisting 200,000,000 o f people,
not including the tribes living on its banks, beyond the limits of China
proper. W ith the exception o f the Canton River, in the extreme south
and the Am oor, on the northern boundary, neither o f which are navi,
gable to any distance, the Yangtze is the only navigable river on the
China coast. Foreign vessels have, for eight years, been permitted to
trade as far as Hankow, 650 miles from the sea ; yet the river is, at all




I 8 6 0 .]

TH E

YAN GTZE

325

K IA N G .

seasons, navigable for the largest sea-going steamers, as far as Ichang,
350 miles further u p ; and even at that point, vessels are not detained
by want o f water, but b y the difficulty o f passing narrow gorges, where
the current is o f wonderful rapidity. Through these gorges the depth
o f water exceeds, in many places, 150 feet, but powerful steamers, capa­
ble o f passing these points, can ascend 1,000 miles further, into the
heart o f the province o f Szechum, the garden o f China. Beyond this
we are without accurate information, as Captain Blackiston, to whom
we are indebted for his careful and scientific exploration of the river
above the Tung Ting Lake, was here compelled to turn back.
Limited and restricted as has been our intercourse with these people,
and scanty as is our information as to their resources and wants, yet
the increase o f trade at the river ports, since the opening o f Hankow, is
sufficient to assure us that, when the day comes, as com e it must, when
the whole valley o f the Yangtze is as freely open to the merchants o f all
rations, as the Mississippi now is, the volume o f trade will assume pro­
portions which will astound the most sanguine believer in the future o f
China. Let us examine the trade returns o f the Imperial customs for
1857, showing the trade carried on in foreign bottoms alone, and reflect
that we have access to the river for only one third o f its navigable
length; and that even on that portion, the goods carried in native craft
far exceed in value the amount carried in foreign vessels ; and then try
and form an estimate o f what that trade will be when the entire river
is open, and steam has superseded mat sails and oars as a propelling
power.
W e find in the returns referred to the figures in this table.
Ports.
S h i c h a i ........................
Hankow ........................
K<n K ia n g......................
Chin K iung....................

Foreign Im ports. Native Im ports. Native Fxports.
Taels.*
Taels.
Taels
34.229,977
30,<02,294
24 523,46>
10,20,0:6
7,836,188
12,4(6,332
2,636,381
665,4C8
4,'54,76 >
3,336,618
2,084.2:6
386,928
60,497,632

41,388,056

41,671,483

Tot-1.
Taels.
891-55,736
SU,537,026
7,860,609
5,806,803
133,660,173

F rom official notifications published, it is almost certain that on the
revision o f the English Treaty, additional ports will be opened, and
among them, probably, Ichang, Chung King and Suchow, on the Upper
Yangtze. It is a favorite but fallacious argument, that the opening o f
a greater number o f ports is disadvantageous to foreign trade, creating
additional expense without proportional profit. This is, however, the
doctrine o f the China merchant o f former days, who believed that China
“ was given to him for an inheritance,” and looks on all fresh workers
•The Tael is 313364, so that the traffic
re B i l l i o n s in ^old.




in f o r e ig n

vessels ’ s about one hundred and seventy-

326

ENLARGEMENT OF THE NEW YORK CANALS.

[

Mai/)

in the field as intruders, and who cannot see that the world is a gainer
by an increased production and trade, because all the profit does not
go into his own pocket. There are many such in China who, having
burnt their figures, in the vain attempt to control the business o f four­
teen ports, as they formerly did one, argue that each port opened
retards trade. I f their views are correct, the day that the entire country
is thrown open, the mercantile world is ruined. The^ average price o f
goods has undoubtedly decreased, but the quantity used has increased
in a wonderful ratio, and it is the question o f quantity which is most
interesting to the United States. Comparatively a very small amount
o f our productions find a market in China, the imports from the United
States, in 1867, being only Taels, 702,683, against Taels, 66,332 514
from Great Britain and her colonies; while the exports to the two coun­
tries are respectively, Taels, 7,493,318, and Taels, 44,961,581. N o
material increase in this demand is to be expected, but it is none the
less for our interests that additional ports, if in the interior, shall be
opened. The navigation o f the inland waters o f China by steam was
inaugurated by Americans, and, with one unimporlant exception, has
been conducted by Americans, in American built vessels, and there is
no reason why it should not always be so. The prize is well worth
striving for, since the day is not far distant when the carrying trade on
the Yangtze will not only rival but surpass that o f the Mississippi.
That the Chinese have already practically decided the question o f steam­
ers versus junks, is shown by the fact that three-fourths of the merchan­
dise carried by the river steamers is for Chinese shippers. Let E ng­
land, then, open fresh ports, double and treble her supplies o f cotton
goods, and purchase every pound o f tea and silk that China can raise ;
yet if we retain a monopoly o f the tranportation to and from the sea­
board, we have availed ourselves o f the most lucrative opening, and
grasped the richest piize that China offers to America.
J. H . G.

ENLARGEMENT OF THE NEW YORK CANALS.
A t a meeting o f the members o f the New York Produce Exchange?
held on the 25th o f March, the subject o f the enlargement o f the canals
o f the State was considered, and an address delivered by Hon. Israel T .
Hatch, of Buffalo. There is no discussion in which the country is more
interested than this. The W est and the East are alike desirous o f
seeing some measure perfected which shall lesson the charges for freight.
Breadstuff's raised in the Western States and Territories are o f little
value unless an Eastern market can be obtained: and prosperity to the




1669]

ENLARGEMENT OF THE NEW YORK CANALS.

327

W est means also prosperity to the East. But whether the desired end
can and should be obtained by the enlargement of our canals, is another
question. M r. Hatch, in his address, has pretty fully and al ly consid­
ered this subject from his own standpoint, and we propose at this time
simply to give the substance o f his address, reserving any comments we
have to make for another occasion.
In 1808, when discussions as to the Erie canal first assumed the form
o f definite action in the Legislature o f the Sta‘ e o f New York, all minor
and selfish interests were patriotically regarded as subordinate to the
national welfare. The Legislature itself, voluntary renouncing the ad­
vantages o f geographical position, except in participation with other
States o f the Union, confidently expected aid from the nation at large,
and p issed an act “ causing an accurate survey to be made for the most
eligible and direct route for a canal to open a communication between
the tidewater o f the Hudson River and Lake Erie, to the end that Con­
gress may be enabled to appropriate such sums as may be necessary for
the accomplishment o f that great national object.” On the 8th o f April,
1811, a further law was passed, which stated in its preamble the object*
o f the act to be, to “ encourage agriculture, promote commerce and
manufactures, and facilitate a free and general intercourse between the
different parts o f the United States, tending to the aggrandizement and
prosperity o f the country, and to consolidate and strengthen the Union.”
Clinton, Morris, Fulton, and others, were appointed commissioners for
the consideration o f all matters relating to the proposed inland naviga­
tion. They were empowered to make application in behalf o f the State
to the Congress o f the United States, or to the Legislature o f any State,
to co-operate in the undertaking. It was not believed that a work so
universal in its benefits should be left to the isolated efforts o f a single
State.
During the pres:dency o f James Madison, the commissioners thus
delegated proceeded to Washington, and presented the application to
Congress. The President made their proposals the subject o f a special
message, dated December 3, 1811, recommending the undertaking as
a national work, and suggesting the adoption o f whatever steps might
be necessary to insure its accomplishment. A t the request o f Albert
Gallatin, then Secretary o f the Treasury, Clinton, Morris, and Fulton
drew a bill, in effect, appropriating $8,000,000 for the work, and em­
bodying the memorable w ords: “ On condition nevertheless that no tax,
toll, or impost shall be levied upon the passage o f boats through the
said canal, other than such as may be needful to pay the annual expenses
o f superintending it and keeping it in repair.” This bill, together with
the special message o f the President, was referred to a large committee,




328

[e n l a r g e m e n t

of

th b

new

tore

can als.

[w lfa y ,

and was favorably received. Gallatin, the Secretary o f the Treasury, in
answer to a letter from the committee, urged their favorable action
upon considerations o f the wisest statemanship and purest patriotism ;
hut as it was expected, and this expectation was verified b y subsequent
events, that a rupture with Great Britain was impending, Congress
finally declined to make the appropriation at that time, on the ground
that “ the resources o f the country might be required to support a war.”
The commissioners marked their sense of the refusal to grant aid to a
national object, no less important in war than in peace, by saying, in
the conclusion o f their report to the Legislature :
These men console themselves with a hope that the envied State o f
New York will continue a suppliant for the favor and a dependent upon
the generosity o f the Union, instead o f making a manly and dignified
appeal to her own power. It remains to be proved whether they judge
justly, who judge so meanly o f our counsels.
After the postponement o f aid by Congress, applications were made
to the Legislatures o f different States; several o f them returned favor,
able answers, but the war with Great Britain having begun, little pro­
gress was made. On the 10th o f November, 1816, D e W itt Clinton,
as president o f a board o f commissioners, appointed the previous year,
renewed the application to the government o f the United States, and
on behalf o f this State, which he represented, again bore significant testi­
mony to the lofty purity o f her motives in seeking her own interest
only by promoting the national welfare. H e said :
The State o f New York is not unaware o f her interests, nor disin­
clined to prosecute them, but when those o f the generd government
are concerned and seem to be paramount, she deems it her duty to ask
for their assistance.
Finding that all her efforts to secure aid from other States or the
general government were unavailing, the State o f New York alone, and
with the slender resources o f those days, resolved to commence the
gigantic work. Even then she persevered in rejecting considerations
merely selfish. H er commissioners repudiated the idea o f a ‘ ‘ transit
duty,” to be levied for the advantage o f the State, and said this would
be “ the better course i f the State stood alone, but fortunately for the
peace o f the Union, this is not the case. W e are connected by a bond
which, if the prayers o f good men are favorably heard, will be indisso­
luble.” The act inaugurating the construction o f navigable communi­
cations between the great W estern and Northern lakes, and the Atlantic
Ocean, was passed by the State, A pril 15, 1817, and was based upon
an important memorial presented to the Legislature by the leading




1869]

ENLARGEMENT OF THE NEW YORK CANALS.

merchants and men o f influence in the city o f N ew York.
that:

329

It stated

Whereas, Navigable communication between Lakes Erie and Cham­
plain and the Atlantic ocean, by means o f canals connecting with the
Hudson River, will promote agriculture and manufactures, mitigate the
calamities o f war, and enhance the blessings ot peace, consolidate the
Union, and advance the prosperity and elevate the character o f the
United States, it is the incumbent r*uty o f the people o f this State to
avail themselves o f the means which the Almighty has placed in their
hands for the promotion o f such signal, extensive, and lasting beuefits
to the human race.
H aving thus originally taken upon herself whatever there might have
been o f risk in making at her own unaided cost, a channel o f cheap com ­
munication by water between the citizens o f the Eastern and Western
States, and between those o f the W est and the great highway o f the
world, the State o f New York continues to be the great regulator o f the
o f the cost o f transit, by means o f her eanals between the East and
W est, protecting no small proportion o f the people o f the Union against
those extortionate charges which might have been levied, if the canal,
with its natural monopoly o f position, had fallen into the hands o f spe
culating individuals or companies, with no check upon the price o f their
freight tariffs except their forbearance, and no restraint upon them, ex ­
cept the easy virtue o f modern legislations.
During the six months o f navigation the canal alone carries as large
a tonnage o f freight as the five chief trunk railroads, from W est to
East, during the whole year, at half the cost to the public, being a
saving annually, in transportation by water, to the great consuming and
producing classes o f the Northwestern and Eastern States o f $36,580,000.
The average cost from Chicago to New York, via the lake*, the Erie
Canal, and the Hudson River, including canal tolls and carriers’ profits
embracing a period o f 10 years, is $7 66^. The cost o f transportation
on the.Central Railway, as given in annual reports, taking the average
for six years, is one cent four mills and nine-tenths o f a mill per m ile,
not including carriers’ profits. This average applied to the distance
from Chicago to New York, by rail, 988 miles, makes $14 31-6 per
ton ; or $6 65-1 more per ton than the average cost for a period o f 10
years, via the lakes, the Erie Canal, and the Hudson River, including
State toll* and profits of carriers. The through freight moved Eastward
by the five trunk lines and the Erie Canal is about, in round numbers,
5,500,000 tons, which, if multiplied by $6 65 1, the difference before
mentioned, would make a difference between rail and water transports,
tion o f the. total freight carried, o f $36,580,500, and if the profits o f the
railway companies be added to the actual cost, this amount would be




330

ENLARGEMENT OF TH E N E W YORK CANALS.

[May,

largely augmented. N )w , however, we have reached a crisis in our
manner o f dealing with the canal system which, if wisely met, will in­
sure New York the commercial supremacy, not only o f the continent,
but o f the world. Our water communication is the true basis o f our
intercourse between the interior and the seaboard. W e have had
practical proof, even under the past wretched system o f management,
o f the immense revenue to be derived from the canals, and their great
superiority in point o f economy. During the period when navigation
becomes closed, our people have experienced the costliness o f ‘railroad
monopoly, and what it would be, were canal opposition set aside. You
have only to recall the early close o f canal navigation in the fall o f 1867,
and the losses amounting to over a million dollars b y the forwarders,
shippers, and consignees o f property detained more by the bad manage,
ment o f our canals than the unpropitious elements. Did railways fur­
nish the necessary relief and bring this property forward ? No. A ll
know that the heavy and bulky articles o f commerce go b y the canalsuch as grain, pork, fuel, coal, salt, etc. W h o suffered here ? N ot the
rich who pay for the luxuries as well as the necessaries of life from their
superabundant wealth, but the laboring classes, who are barely able to
purchase the necessaries o f life wiih their scanty earnings. This saving
to the poorer classes, well illustrated in the annual financial report o f
the Auditor o f the Canal Department, o f 1866, in which a table o f ton­
nage, carried by canal and rail, and a calculation made upon the basis
o f six years’ transportation by the two methods, is given, showing
that our canal saved to the great producing and consuming classes
$8,000,000 annually.
But the State has done little or nothing for the canals since the adop­
tion o f the Constitution o f 1846. Only through the strength o f a canal
party in 1853 was the restriction o f that Constitution removed, and so
•mended that a loan upon the pledge o f canal revenues w'as aphorized
by the Legislature, and the present enlargement secured, with the ad­
vantages o f decreased cost o f transportation and increased trade and
revenue. But for that enlargement, the vast volume o f trade now flow­
ing into New York through canals, would have been turned into other
channels, and lost to the city and the State. The late Constitutional
Convention had not the statesmanship to comprehend the commercial
necessities o f the hour and o f the future, and consequently did not make
any liberal provision for them. It refused to introduce into the pro­
posed Constitution a provision conceding to the State Legislature the
right to raise a loan for the furtherance o f canal enlargement on th*
pledge o f the canal revenues, or rather prohibited it from borrowing
upon them. There is nothing now left for us except to amend the Con­




1869]

ENLARGEMENT OF THE NEW TORE CANALS.

331

stitution by the same means as we did in 1853, to borrow $10,000,000,
i f that sum is necessary to im prove our canals; and if the Legislature
will propose the amendment, it can be carried through in fourteen
months. Auditor Bell, in his financial report o f 1868, says:
The application o f the balance now in all the Sinking Funds to the
payment o f the several canal debts for which these funds were provided
and set apart, would reduce them to $10,307,921 24, as will more fully
appear by the follow in g:
Statement of the Canal Debt on the SOM September, 1868, the Balances in the Sink­
ing tund, and the Amount of the Debt, after deducting the Balances applicable
thereto:
Ratar ce s o f Sink

in g Funds eOthof B a l a n c e Of
Sep’ t. 1868, in- Debt alter ap>
Debt 30th Sep- clm lingTem pora- ply D gSiaki’g
tcmber, 1868.
ry luves menta.
Funds.
Tinder Art. 7, Sec. 1 or the C onstitution. $9,340,860 00
$ 3 .?lp,03:i 67
.............
Under A it. 7, ' e c. 3 of the C onstitution. 10,334,100 00
1.132,620 13
$9,501.519 83
Under Art. 7, Sec. 1 2 o f the Const t - t i o n . . . .
1,685,000 00
518.658 64
1,106.311 38
$14,249,960 09

$4,017,232 43

$10,307,931 24

From above and from other portions o f his report, it will be seen
that the amount of money on hand, or rather on deposit in “ A lbany
City Depositaries,” or other banks, was $4,048,379, which cannot be
used, under the provisions o f our Constitution, until 1873, when $3,550,800 o f canal debts fall due. This large sum must remain at a low rate
o f interest, and accumulate until 1873. I f any improvement o f our
canals is needed, these surplus moneys cannot be used for it, because it
would violate the sacred obligations o f the Constitution o f 1846, and
• *he people must be taxed unnecessarily ; the toll sheet cannot be
changed Out to a limited extent, so as to retain or increase the trade o f
the canals, because the money is all required to fulfill the provisions o f
the Constitution o f 1846. It requires a great amount o f credulity t»
believe that our canals, thus hampered by these constitutional restric­
tions, can long retain its present tonnage, and much less add to it that
annual increase with belongs to them.
On the other hand, if this proposed amendment is adopted, our tolls
can at once be reduced two thirds, and carriers’ charges one-half. The
history o f successive eula-gements and successive reductions o f tolls
upon them, demonstrates this fact, that in proportion as you increase
the capacity of the canals for transportation, you decrease the cost of
transportation, and increase the tonnage and revenue. Under this wise
policy, adopted by Clinton, Morris, Marcy, Hoffman, Bouck, and Earle;
the tonnage passing over our canals, and the revenues from them, have
doubled in every decade.
Some object to the enlargement o f our canals because they fear they
will not be an honest expenditure o f the money. They speak o f it as




332

ENLARGEMENT OF THE NEW FORE CANALS.

|May,

though there was some inherent wrong in our canal system, when the
fault, if any, is in the incompetency and dishonesty o f the public officers
charged with its management. It is difficult to conceive how any very
extensive frauds can be perpetrated, without there is im becility and
connivance in their execution. Yet in the Constitutional Convention o f
1867, any liberality in a constitutional section to give the Legislature
power to borrow money to im prove our canals, was howled out o f the
Convention, under the cry o f “ Canal Frauds,” debt, taxation, etc. M r.
Evarts moved the adoption o f a section to empower the Legislature to
borrow $10,000,000, to enlarge the canals, which was voted down. Mi1.
Erastu* Brooks at last moved $2,000,000— voted down. Immediately
after that the same Convention gave the Legislature unrestricted power
to borrow as much as might be necessary to construct the new Capitol
building (not needed, except for display), it a cost o f $10,000,000, and
tax the people to pay it. Yes— an unproductive work they could au­
thorize ; but for a work that was paying $3,000,000 net annually, under
the worst kind o f management, they would give no power to the Legis­
lature to authorize any improvement, because they feared the people
might be taxed. In one case they were willing the people should bo
taxed $10,000,000 for the construction o f an unproductive ornamental
w o ik ; in the other, where it was shown that the improvement of our
canal, from its own revenues, would increase the revenue, they refused
any authority, because they were afraid the money appropriated would
be stolen, and the people taxed. E verybody knows that there is no
danger o f the people being taxed for any canal debts, if our canals are
managed and improved with any kind o f wisdom, and with even toler­
able honesty ; and if the restrictions o f the Constitution are removed,
so that Our Canal Board can use the money on hand to improve the
canals, instead o f lending the money to the A lbany and other banks—
now near $5,000,000— and adjust their tariff rates the same as managers
o f railways do to retain and increase their business. The suggestion
that the alleged stealing under our contract system must be stopped
before any money is borrowed to improve our canals, scarcely deserves
grave consideration. It arises from ignorance o f the interests o f our
canals, or an interested opposition to any improvement o f them. W h y,
such a course is about as wise as it would be for a man to stop in his
endeavors to put out the dames o f his burning house, and go after
the thieves who he feared might congregate after the fire for plunder.
But we are told that our canals are not worth preserving. Mr. Jay
Gould said, before the Canal Committee, in Albany, practically, that
they were n o t; that he could use them up with his railways. He, in
fact, claimed that he could demolish b y successful competition, in a




I8 6 0 ]

ENLARGEMENT OF THE NEW YORK CANALS.

333

day, our splendid canal system, which has been the work and pride of
our people for half a century, and founded upon a policy inaugurated
by the wisdom, the patriotism, and heroism o f the earliest and noblest
statesmen of this commonwealth. Only one such boast was ever before
made in this country, and that was two years ago, in a speech in Chi­
cago, by a foreign Knight and stock operator. H e proclaimed that his
continental railway, the Atlantic and Pacific, could and would carry all
the lake end canal freights. It was Sir Morton Peto. H e strutted his
brief hour here— dashed through the country in his imperial car, giving
his bouquet dinners. You all know his fate, and the fate o f his railway,
which stands on our soil, going to decay, a monument o f his lolly, and
a warning to kindred spirits.
Let me say one word further upon the pretensions of those present
claims o f our railway managers who believe railways would use up our
canals ? The railway managers answered this question p irtially them­
selves, a short time since, before a committee o f the Legislature, at A l­
bany, while a bill was under consideration calculated to give the people
o f this State along their lines equal facilities for transportation o f their
property at relative prices, with people beyond the Stale. They say
they cannot maintain the supremacy o f their lines in the carrying trade
ol passengers and freight, if compelled to make a pro rata scale o f
charges to the people o f this State. That is, unless they can levy an
arbitrary rate upon the passengers and property o f our citizens above
the fair value o f such services, and above that charged upon passengers
and freight traffic o f the citizens o f other States, they cannot continue to
serve the citizens o f others States at rates below the fair value o f such
services. This would surely be a costly warfare to secure the suprem­
acy— thus levying upon our own citizens the cost incurred in the de­
struction o f our own canal system. Fortunately for the people o f New
York, the isthmus between the great lakes and our seaboard across the
State o f New York, has sufficient merit as the great natural tract or
channel o f commerce, to lequire no such forced, contributions from the
people along their lines, to maintain their supremacy over all others
between the mouth o f the St. Lawrence and the mouth of the Mississippi.
But this boast may in time become truth, if something is not done to
improve our great series o f public works. Anything can be destroyed
by neglect. The cost of transportation could be reduced two thirds
under proper improvement and management. An amendment to the
Constitution could probably be obtained, as the political power o f the
canal regions was great. There were 1,000 miles o f canals, with the
trunk canal and branches, extending to every part o f the State. The
majority in favor o f the amendment in 1853, was 121,000. This major-




334

ENLARGEMENT OF THE NEW YORK CANALS.

[ May,

ity will not be diminished. There was a village along the banks, at an
average o f every three miles. Sixteen years ago the capacity o f a canal
boat was only sixty tons. Where, to day, would be your trade, if the
last enlargement had not increased the tonnage o f canal boats to two
hundred and twenty-five tons. Some claim that the political power o f
the canal question, which was raised successfully in 1853, has dimin­
ished with the diminution o f our local traffic, whilst the railway power
has been augmented, from the increased use o f the rail by our people.
I admit there is some force in this suggestion, but with the decrease o f
our own local traffic on our canals, there has been an increase in the
practical knowledge oi the workings o f our two carrying systems. The
enlightened railway managers o f our great trunk lines find rival lines
through Canada, Pennsylvania, and Maryland can successfully compete
with them, and that in order to maintain their commercial supremacy,
as a portion o f the carrying system of this State, six months in the year
they must maintain the commercial supremacy o f our canals, which
during the season o f navigation regulate the freight tariffs o f our carry­
ing system, bringing through them the volume of Western trade. Our
railways have a fair share o f the benefits arising from this current o f
trade, created and held by our canals during six months in the year,
and a monopoly o f them when our canals are closed for the other six
months. The comprehensive minds o f Erastus Corning and Dean
Richmond, who were alike distinguished for their successful manage­
ment o f railways, and their intimate knowledge o f the ebb and flow of
our internal commerce, at an early day recognized the true basis of the
relations o f our two carrying systems. Their sagacity penetrated
through the apparent antagonism, and found a community o f interests,
and maintained always that there should be harmony o f action between
the two. O f the former distinguished gentleman, and as an associate
member of the Finance Committe in the Constitutional Convention of
1867, I feel at liberty to say, that he always maintained a most liberal
policy toward our canals; insisting that tolls should be removed from
them as fast as consistent with the payment o f the canal d eb t; that rail­
ways could never successfully compete with canals in carrying the
bulky articles o f commerce, a n l that our railways could only maintain
their commercial supremacy through the agency o f our canals. I say
then that we have nothing to fear from railways, for an intelligent exam ­
ination o f the subject will satisfy them o f the force of these v iew s; or
they will adopt them through the instinct o f self-preservation, if not
from an enlightened consideration.
M r. Hatch said he was detaining them longer than he wished (G o
on, go on)— but he noticed, as doubtless they did, in the telegram from




1860]

ENLARGEMENT OF THE NEW YORK CANALS.

335

Washington this morning, a resolution introduced by Mr. Schenek,
Chairmain of the Committee o f W ays and Means, which was adopted,
requesting the President o f the United States to open negotiations with
the Dominion o f Canada, to secure, among other privileges, the free
navigation o f the St. Lawrence.
It is the old reciprocity scheme.
Col. Ilincken said, they were divided upon the question o f a recipro­
city treaty.
Mr. Hatch resumed: W ell, sir, you may be divided here upon some
o f the terms o f a treaty, but you cannot afford to divide opinion or ac­
tion upon the equivalents which are proposed in exchange between the
two countries as a basis for a treaty, our free markets for their free
canals, enlarged for passage o f vessels o f 1,200 tons, to be constructed
and paid for from trade diverted from our lake marine, o-r our railways
and canals, and your ships.
*
The Hon A . T. Galt, the Canadian Minister o f Finance, in a late
speech, on behalf o f the government, said :
W e have no trade ourselves which would require enlargement o f the
canals; no trade which vvould justify us in enlarging them; we could
only be repaid for such improvements by obtaining the American
States’ trade, and making it pay tolls, or otherwise contribute to our
revenue.
H ow far our government will be willing to surrender its trade and
revenues as a tribute to British-Canadian rivalry, will depend upon the
character and honesty of American statesmanship in Washington. In
other words, surrender to us your American commerce, that is now car­
ried by your lake marine, over your railways and canals, and broughto this city to enrich your commission merchants and freight your
ships, and we will give you the free navigation o f the St. Lawrence
with enlarged canals. T o read this resolution, the credulous would sup­
pose the honorable chairman o f the Committee o f W ays and Means was
seeking to secure to us some great commercial advantage which is now
withheld. W hat is the fact? The free navigation o f the St. Lawrence
is now conceded to our lake marine, and it is a barren concession, not
half a dozen American vessels having passed through via the St. Lawt
rence, since the abrogation o f the treaty. And what does the Dominion
receive in return for this barren concession 1 Their vessels are allowed
to go into our inland sea, Lake Michigan, and enter into the great grain
port of this continent, Chicago, and others on that lake, and there com­
pete with American vessels for the diversion o f property which would
otherwise go over our American carrying systems.




336

ENLARGEMENT OF THE NEW YORE CANALS.

\May,

Again, Canadian railways are permitted, under the exercise o f very
doubtful authority, and policy, too by the Secretary o f the Treasury, to
carry American merchandise from one port o f the United States to
another, through Canada, when our navigation laws have prohibited
their vessels from transporting the same property from the same ports;
in fact, through our liberal concessions their vessels and railways are
furnished with all their business, except that o f their inferior local
traffic.
If the Erie Canal is improved, and the cost o f transportation reduced,
the great cause o f dissatisfaction in the W est will be removed, and Brit­
ish capitalists will refuse to make further investment in the unproduc­
tive works o f Canada, especially when this great State adopts a policy
which will make our canals, in no distant time, as free as our lakes and
rivers, and which in the end will give a free water line o f transportation
from this city, 1,500 miles long, to the centre o f the continent, and by
addition o f 700 miles rail, extend it to reach the Pacific.
Finally, allow me to remind you that the Northwest aims at direct
trade with Europe, and Boston believes that if the St. Lawrence canals
can be enlarged, they can bring their largest line o f propellers upon the
lakes, which now are engaged in carrying freight from Chicago to Ogdensburg, and then by rail to Boston, through the St. Lawrence to
Boston, become respectable rivals to you in the inland commerce o f
this country. Schemes to accomplish these objects are pending in Con­
gress now, and I do not hesitate to say that I believe, as certainly as
that the waters o f the St. Lawrence will continue to flow to the ocean,
that this commerc'al experiment will be tried to change the channels
and outlets o f the inland commerce o f this country. O f its probable
success 1 have nothing to say, only that if our commercial power on
this continent should be diminished, or pass into rival hands, it will be
owing to our neglect to improve those natural advantages with which
the God o f nature has surrounded us.
I will only add in conclusion, that longer inaction upon the part o f
our canal people must hasten the day for the abandonment o f our pub­
lic works. Clinton, Morris, and Fulton said to the Legislature, in a
critical period o f our canal h istory: “ That delays are the refuge o f
weak minds.” Corruption and a narrow policy are our worst foes. I
appeal to you then to act promptly in this crisis o f our canal affairs,
and with some o f the energy, faith, comprehension, and foresight o f your
illustrious predecessors— those merchant princes who, in 1817, mem o­
rialized the Legislature for the construction o f the Erie Canal, and
lived, thank God, to rejoice with the whole people o f this State over its
completion in 1825— a work unsurpassed in ancient or modern history,




1869]

MR. BOUTWELL AND OUR FINANCE3.

837

both in the grandeur o f the gigantic undertaking, and in the magnitude
o f commercial results. There is no mistaking the signs o f the times—
they point us to a steady march in the improvements around u s; everywe can read progress. W e are admonished to heed the teaching which
this fact furnishes, and those who disregard it— whether they be States
or political parties— and who do not m ove on and keep step to the for­
ward movement o f the day, will be forced behind by their more enter­
prising and progressive rivals.

MR. BOUTWELL AND OUR FINANCES.
The monetary operations of the government o f the United States offer
in our reports an anomaly which has its parallel in those o f no other
great commercial nation. Ever since the passage o f the Sub-Treasury
Law, in 1810, the financial machinery used, in the receipts and disburse­
ments of the government, has been seperated as far as possible from that
employed in the receipts and disbursements of the business community.
The use of the National Banks as depositories o f the public money took
away some o f the evils and disturbing forces which arose out o f this
anomalous separation. But as the depository system is now less used
than formerly, and as it will probably fall still more into inactivity, there
is a change apprehended in the early future, and a revival, in exaggerated
forms, of the derangement and friction which formerly was so often ascribed
to the Treasury as its active cause. This apprehension may be modified
to some extent by the skilful judicious administration of Mr. Secretary
Boutwell and Mr. Van Dyck the Assistant Treasurer. But it will long con­
stitute one of the perils o f the financial situation, that at any moment the
government may be selling two or three millions o f gold, draw out o f circu­
lation and lock up from commercial use the four or five millions o f cur­
rency which is all that is required by the banks as a machinery for effect­
ing their exchanges o f 100 or 120 millions o f dollars a day. Mr. Bout­
well showed in his speech at the Stock Exchange that he is not unaware
of this sensitive and delicate peril which is one foundation for the feverish
unrest which afflicts the money market, and for the uncertainty and
speculative excitability which, while it depresses legitimate trade, gives
occasion for the strategy o f cliques in the Stock Exchange and the mani­
pulation of capitalists in the Gold Room.
There are two leading features of importance in the policy which Mr
Boutwell says he shall pursue. The first has to do with the sales of
gold, the second with the currency balance he will keep on hand. A s to
the sales of the coin received for customs, it is his intention to refrain
from sudden, capricious, uncertain changes o f plan. Other things being




2

S38

MR. BOUTWKIX AWD OCR FINANCES.

{M ay,

equal be will sell every week about the amount required to keep the coin
balance at about the same level. W hen the coin receipts are heavy he
will sell more, and when they are light he will sell less. In no one week,
however, will he place more than a million o f gold on the maiket, and if
the interest disbursements are heavy he may have very little to sell at all.
Still, as we understand him, some sales will be made every week except
the bids happen to be so low that he deems it not for the interest of the
government to accept them. N ow this arrangement, a3 we said,.is a very
satisfactory one. There is nothing irregular or spasmodic about ft. It
will produce no derangement or disturbance either in the money market
or in the movements of busines. Had such a policy been followed steadily
out during the last three or four years it is safe to say that the losses of
many millions o f dollars would have been saved to our commercial and
manufacturing industry. The secrecy, the mystery, the harrassing uncer­
tainty which have been deemed a necessary part of the Treasury policy,
is now given up, and that publicity for which the country has been wait­
ing is now happily inaugurated. This is one of many reasons we would
cite why our commercial and financial men are looking forward with much
of hope and confidence to the results and operations of the administration
o f Mr. Boutwell.
But this confidence regards still more the other part of the Secretary’s
policy which refers to the mischievous hoarding of idle greenbacks in
the Treasury. "We are approaching that season of the year when cur
rency accumulates iu New York, the great mercantile and monetary
centre of the country. Still the South has been absorbing a vast amount
o f greenbacks only a part of which have come back here. Forty or fifty
millions have been drawn into the more active circulating channels o f
Southern industry whete a large part will remain. This large sum taken
from the North by the South will make greenbacks more scarce here this
summer than in former years. Hence the importance o f the knowledge
that Mr. Boutwell will not, as McCulloch did more than once during his
closing year of office, deplete suddenly the channels o f the circulation by
locking up greenbacks in the vaults o f the Treasury. A depletion of the
greenback from the banks to the extent of four or five millions at a critical
moment, will suffice to fill an easy money market with convulsion, con­
sternation and spasm. No trouble from this source is to be apprehended
under M r. Boutwell’s management, and this fear being removed, there is
more confidence in business circles. Such are some o f the reasons for
the rise in government bonds which was developed during Mr. Boutwell’s
brief visit to New Yoik on Thursday. This advance was ascribed to the
expectation that Mr. Boutwell would buy up some of the gold-bearing
bonds for the sinking fund. The chief cause undoubtedly must be sought




RAILROADS OF THE WORLD,

1869]

339

in the general confidence which lias been resuscitated by the sound, con­
servative, cautious policy which the Treasury is expected to pursue as to
the currency balance and the sales of gold.

RAILROADS OF THE WORLD (CLOSE OF 1863.)
W e have compiled from the most recent information published the fol­
lowing table, showing the extent and population of all countries into
which the railroad has been introduced, the length and cost of the rail­
roads therein, and their relation to area and population :
t xteu t it P o p V n .
Countries & St.it s.

No r t h A m e r ic a ................................
A m e r ic a ....................................................
D om . o f Canada:
...............................
O ntario..................................... ...........
Q u ebec...................................................
2s. B r u n s w ic k ............ ......................
N ova S c o tia .........................................
M e x i c o ......................................................
W K 'T Ix d i a I s ....................................
C u b a ..........................................................
Ja m a ica .....................................................
SOU I’M 'MERICA..................................
C olom bia...................................................
V en ezu l a ................................................
British G u a y a n a ....................................
B r a z il.........................................................
P a ra g u a y ..................................................
Peru ..........................................................
< h i l i ...........................................................
A rg on lin e R e p u b lic...............................
E u r o -'e .
17. K . o f Gt. Britain and Ire la n d .......
F ren ch E m pire........................................
Spain...........................................................
P o r tu g a l...................................................
Swiss R e p u b lic........................................
I t a l y ...........................................................
Roman S ta te s .........................................
P r u s s ia .....................................................
N. G erm an - t u t s Luther)...................
S. G erm an States....................................
A u stria t E m pire....................................
B e lg iu m ....................................................
H olla n d .....................................................
S w e d e n .....................................................
N o r w a y .....................................................
D e n m a r k ..................................................
Russia ( n h r o p e )................................
T u rk ey (iu E u r o p e )...............................
G re e c e .......................................................
ASIA.
T u rk ey iu A s ia ........................................
P ersia.........................................................
British In d ia.............................................
J a v a ............................................................
C e y lo n .......................................................
A f r ic a .
E g y p t.........................................................
A l g e r i a .....................................................
Tape C o lo n y .............................................
N a t .l..........................................................
AUSTR >LIA.
V ic to r ia ............ ........................................
N ew Sou h \Yal -6..................................
Q ueensland...............................................
b ou t i A u stralia......................................
N ew Z ea .a n d ...........................................

A ’-ea in
square
m i es.

R ailroads.

Len’ h
P o p u la ­
in
A b so lu te
tion .
miles.
cost.

Sq m i’s
to "ach
R ela­ mil * o f
tive
r. li­
cost. re ad.

3,001,002 37,015,000 42,247 $1,829,529,313 $44,255

71.04

Inhabit­
ants to
each
m ile of
railroad.
876.15

147,8 2
‘*09/90
21, 37
18, 71
712,672

1,962,067
1,354.067
319.027
882,3 i5
8,25j ,080

1 ,4 0 :

47 278
6,250

1,419,261
441,264

431
14

22,458.548 52,108
391,174 27,911

109.69
446.43

3/62.5*
3.151.85

521,912 2,797,473
1,569,810
426, 0
155,026
9 i.SOO
2,973,4 0 10,'M5.10U
86.206 1,000,000
498.703 2,M3,901
249,79 s 1,701.931
1,12j,4o0 1,259.355

4S
82
60
512
46
101
391
231

8,000,000 106.657
2,753.781 84,212
5,539,140 92.319
102,9 2,384 201.15?
4.13‘>,3 0 89,790
5.6 7 410 , 56,410
21,'55.746 61.369
12.455,058 53,9b

10.873.33
13,331.56
1,6(5 00
5,807.42
1,874 ns
4.937.65
634 01
466.32

58.280.68
82 589.74
2,583.77
19.619.14
21,739 13
h4,830.19
4,: 27.23
5,451,75

122,519
21U60
1«2 7 3
36,47«
l',272
101, 78
4,518
139,499
44 519
240,252
14.408
13.621
110,552
123.228
14,726
1,964,730
20V 12
20.166

29,293 319
37, 82,225
16 031,217
3.937,861
2,5 ’4.340
24,896.801
692/ 06
23,595 543
5,657.791
8,521,46 >
32,573,' 02
4,940,570
3,735 632
4.11 1,141
1,701,473
1 6)8,<>95
65,952, 67
1:4,725,367
l,325,c40

6*3,300 16,0*0/00
526.00 >1 lo,0'‘0,< Ofl
1.402 2C0 179.192,000
52 000 13,917,000
24,709 1,791,000
178,000
214.000

120,000
20,000

2,500,000
2,500,000
30 '.0 0
150,0.0

575
225
145
202

107 815,774
43 016,519
6.9 4,232
6,955,178
11.693,840

76,344
101.98 1 394.51
74 811
3 5.20 2/54.90
30,771
119'3
1,4 1.62
47.969
123.79 2.(37.00
54,92l) 2,825.14 40,886.53

8 60 ?,056.10
*4,217 2,511.314.435 175,269
21.25 3 763.06
19,93 • 1,576,664.89' 158,714
367,437,924 107/56
53. >9 4.675.20
3,429
69.t9 7,639.59
f 2>87.474 101,317
5 2
7M 57/2- 8M32
17.02 2,814.09
897
882,580 772 93.1(8
24.CO 6.054.09
4,l'./9
18,643.472 86.317
21.06 3 206.61
2'6
747.689,346 126 171
23 51 3,9 SI.70
5.926
1 3' 1
18.57 4.3 5.63
117,107.697 89,327
2,681
234 914,279 87,659
16.5 < 3.179/9
3 7 3 9.5 55 73 915
54 21 7,354.89
4,429
1,703
182 198/61 106/87
6.69 2.901.S3
88'
85,634,081 9 7,201
15.4<
4.210.27
112.89 3.44*'d 9
1,194
74 539.072 62,838
44
4,055,656 9?,174 2 800.63 3-,6i9.9>
8 a 2 4,010.21
401
22 902.714 57.111
4.317
734.70 >.274 16,'.922
455 ?4 15,2 5 /5
14,936,551 46,729
3 9
(29 50 49/95.82
ICO
201.66 13,253.10
5,000,000 5: ,000
143

100
102

6 964,243
6.000,OOJ
3J1,838,791
7,''50,010
2,280,530

48'01 4,7'Q.4'A 12.277.76
60,000 5,260 (0 10i/0 0 .00
95,76.4
342 67 3 861.12
75,000
5(9.80 136.441.li
61.636
607.57 4i,405.18

468
23 j
85

45/63,879
1.825,821
7,828,792
i 19,42;

96,504
S8\34 5,341 .as
65,2 8 7,367.31 35/4 8.592.K3 1.4 '.76 3.52*.8C
59,711 10,000.0 > 75,000.00

4 0 '2
37

2

571.391
86 800
409
46 549.268 113,812
21
1,404.23
323.400
174,
14.007/221 80.563 1.85-' .62 2,177.79
378/35
678,000
59.712
102 10,161,519 95,622 6.647.06 53*>.4t
118,416)
87
383 3 0
5,142,427 59,108 4.405/5 1,13.972
106,500
175,3 >7
17
1,491,402 87,729 6.254.70 10,315.16
R E C A pIT U L A T roN.
N orth A m e r ic a ........................................ 4,177.2041 49.291.006 44,802 2,045,364,856 45.655
93.04 1,100.26
W . India islan ds......................................
445
53.526 1,890.528
22.819.722 50,348
120.2S 4,248.38
South A m e r .c a ....................................... 5,979,4*5! 21,040.9 7 1.421
165.728,862 1'6,3-2 4,128.83 14,775.98
E u r o p e ..................................................... 3,642,626 234.212,055 56,660 7,528, 34.923 132.876
64.‘ 9 5,016.11
A « i a ............................................................ 2.978,2 0.221,250.000 4,474
414,783 564 92 7(9
666.67 49 152.39
583
A fr ic a ........................................................
53 ty 0 > 5,450 000
54,937,917 94,2X4
912.52 10.639.11
A u s tr a lia .................................................. 1,578.000 1,328,751
789
77/52.133 93,038 2,000.00 1.684.09
A g g reg . in W o r ld .................................. 19,441,013'584,463,937 109,177 10,829,751,982 99,194




178.06

5,353.36

340

ASPECTS OP OCR DOMESTIC AND FOREIGN TRADE.

[May,

ASPECTS OF OCR DOMESTIC AND FOREIGN TRADE.
W e shall scarcely subject ourselves to the imputation of croaking in
asserting broadly that the results o f the Spring trade have thus far been
unsatisfactory. Liberal preparations had been made for the season’s busi­
ness; the demand, however, appeers to have fallen below the supply of
goods; and we now begin to witness the accumulation o f stocks and the
anxiety to realise usual under such circumstances.
Our trade with the
South has afforded little or no occasion for complaint; that section having
taken more goods than at any period since I860, and having also paid for
them promptly. W ith the West, a market which is every year largely
expanding, the case has been otherwise. The decline in the price of grain
has been a serious disappointment to the thrifty rural population o f that
section, causing them to economise their expenditures; while the mer­
chants of the lake ports are heavy losers upon carrying produce. The
Atlantic States also have been scanty buyers, the country merchants gen­
erally showing the caution which indicates a lack of confidence in their
customers taking any liberal amount o f goods and a desire to keep their
indebtedness here as low as possible. The complaint is universal among
retailers that they find‘the pressure for credit increasing ana that collec­
tions are becoming more and more difficult. In the manufac'uring
States, the profits of the mills have not recently been such as to encourage
an expansion of operations, but, on the contrary, have necessitated a
partial contraction in the mechanical industries, with a corresponding effect
upon all dependent branches. The whole case, indeed, may be summed
up in the statement that, the South excepted, the profits upon agriculture,
manufactures and trade have been unsatisfactory, and the people, conse­
quently, are compelled to contract their expenditures. A special cause
of embarrassment to business has also arisen from the abnormal condition
o f our currency system, resulting in frequent spasms in the money maiket,
and rendering it impossible for merchants to get needful accommodation
from the banks ; this difficulty having been but little less felt in the
country generally than in this city, where for several weeks it Las been
impossible to get the best paper discounted at less than 10@ 12 per cent.
W ith this condition o f the home trade, we naturally require a very
moderate supply of foreign products. Out people, in addition to their
reduced means arising from the causes just specified, have, after the war
excitement, settled down into a conservative mood, and are disposed to
regulate their expenditures so as to correspond more closely with their
income; and the finer manufactures and the luxuries of foreign countries
are consequently less wanted. Importers however, do not appear to have
adapted their purchases to this changed condition of things. On the
contrary, having experienced two or three fairly prosperous seasons upon




18G9]

ASPECTS OF OUR DOMESTIC AND FOREIGN TRADE.

311

moderate importations, they have imprudently rushed into extensive
operations, as indicated by the very large increase in our imports. Tha
improved standing of the public credit and the consequent demand for our
bonds in Europe have facilitated, not to say largely induced, this course
of things. Bankers have been the readier to encourage this import move­
ment when they saw that importations could be paid for in bonds, in the
exportation o f which they would find a profitable business; and, to this
extent, the late large shipments o f securities to Europe have been a mis­
fortune. Both, importers and bankers who have backed them, however,
assume heavy risks in such a course of business. The people are plainly
not in a position to take the large supply o f merchandise at its ordinary
value, and much o f it must consequently be marketed at a heavy loss, to
be borne by importers so far as they are able, and by the bankers where
they are not able.
The imports at New York, for the first three months of the current year
aggregate $83,103,000, against $62,750,000 for the same period of last
year, showing the very large increase of 31 per cent. If the surplus o f
exportable domestic products showed a similar gain, there might be less
ground for dissatisfaction with this expansion ; but, unfortunately, there is
not only no gain in the exports but a positive decrease, the total shipments
of produce for the period being $5,500,000 in currency less than in 1808,
This adverse course of our foreign trade has been in progress for several
months past, and demands prompt attention from the banking and import­
ing in'erests. Owing to the delay iu the publication of the returns o f the
statistical department of the Treasury, we are unable to give any complete
•tatement of the recent course of imports and exports for the whole
country. The trade movement at this port, and at the cotton ports of
which we have complete returns up to April 1st, will, however, enable us
to form a close approximate estimate o f the movement for the country at
arge. W e therefore present the following statement o f the trade of New
Y oik and of the cotton exports at the Snith, for the seven months com­
mencing with the cotton year and ending March 30th, the value o f the
expoits being in each case reduce 1 to gold, so as to facilitate comparison
with the imports, which are entered in gold values.
IM P E T 9 A T N EW Y O R K .

From Sept. 1, 1888, to April 1, 1SR9...................................................................................... $151,816,008
)S6T,
“
ISIS....................................................................................... 121.851,000
Increase o f im p o r ts .......................................................................................................

$23,936,000

EXPORTS A T S E W Y O R K .

Produce (gold v ilu e .)
S p -cie .
FrornS pt. 1 , 1SP8, to A»'ril 1, 1 ^ 9 . . .................................................$*>3 , 7 2 0 ,0 0 0
$15,>00,000
“
1667,
“
1868 ......................................................... 76,21:0,000
26,672,000

Decrease ...............
Add decieade in pro luce,
Total decrease in exports




$7,53J,0‘J0

$1',372,000
7,530,000
$13,002,000

342

ASPECTS OF Otm DOMESTIC AND FOREIGN TRADE.
E X P O R T S C P CO TTO N A T

From Sept. 1,18£‘S, to April 1 ,1Q69.
“
1807
•,
1808.

[May,

SO U TH ERN PO R T S.

Palps . Va'no i n gold.
1S9.M5
991,8111

$ ‘ s,S!i0,000
13,050,000

Deere s e .........................................................................................
255,i05
Iocresse...........................................................................................................

............
J d.SIO.OOO

It appears from these figures that, for the last seven months, the imports
at this poll are $23,985,000 more than for the same period of a year
previous, while we have had $18,902,000, in gold, less exports, to set off
the imports, than then ; making a total o f $42,817,000 against u-, at this
point, as compared with last year. The principal offset against this adverse
course of trade, it the principal port o f the country, consists in the enlarged
value of the cotton exports of the Southern ports. A few months ago, this
was a very fruitful source of exchange, owing to the higher price o f cot­
ton ; but, more recently, the shipments have declined to such an extent
that we find the value of the total Southern exports of the staple, for the
Beven months, to be only $5,840,000 in gold more than last year. It eally
therefore, the increased value o f th« exports o f cotton from the South con­
tributes but little to counterbalance the adverse balance of trade at this
port. Nor is there any evident reason for supposing that the course o f
trade at Boston, Baltimore, Philadelphia and the minor ports will con­
tribute toward adjusting this inequality. On the contrary, in the absence
o f any indications that the balance of imports and exports at tho-e p irts
is unusually favorable, it is reasonable rather to conclude that the rule
which lias obtained at New York holds good elsewhere. W e infer, there­
fore, that whatever may have been the course of the foreign trade o f the
United States for these seven months of 1S67 and 1802, the bdance tor
the past sever months is fully $40,000,000 in gold less favorable than then.
To what extent this adverse course c f trade has been set off by the ship­
ment of U . S. bonds and other securities it is impossible to estimate. It
will be generally allowed that, within the period under review, we have
exported considerably more securities than for the same time a year pre­
vious; but probabilities are decidedly against the supposition that the
increase in this branch of exports will cover the above comparative
deficiency in the commercial account. Be this as it may, it is clearly a
perilous policy to keep up our present latio of imports, concurrently with
diminishing exports, with no other dependence for adjusting the inequality
than an assumntion that we shall still be able to send out our obligations
to Europe. Considering how easily a threatening turn in the Alabama
negotiations or in our relations with Cuba might check the E iropean
demand for our securities, it is easy to see how our foreign trade might be
thrown into a condition o f utter confusion ; so that caution in our foreign
diplomacy is as much needed as contraction among the importers.




1869]

343

PUBLIC DEBT OF THE UNITED STATES.

PUBLIC DEBT OF THE UNITED STATES.
A bstract statement, as appears from the books and Treasurer returns in the
Treasury Department, on the 1st o f A pril and 1st o f May, 1869 :
D E B T B E A R I N G C O IN I N T E R E S T .

...

April 1
May 1.
Increase.
5 p ercen t, b o n d s .................................. $221,589,300 00 $221 5 s >,>00 00 $
6
*•
1881......................................
283,617,400 00
283,677,40000
6
44
(5-20’s) 1............................... 1,602,609,950 00 1,60 2,612,0 J) 00
2.050 00
............... 2,107,876,650 00 2,107,878,700 00

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

Decrease.
$ ...........

2.050 00

D E B T B E A R IN G C U R R E N C Y I N T E R E S T .

........
3 p. cent, certificates.
Navy Pen. F*d 3 p .c ...............

*51,605^000 00
14,(X*U,000 00

53, 46,4 00 00
14,000,000 GO

125,457,320 00

124,092,323 00

. .........

1,865.000 00

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

123,500 00

r NOT PRESEN TED FO R PAYM EN T.

7-30 n. due Aug. 15, ’ 67, J ’ e & J ’ y
15, ’ 6 S .................................................
6 p.c. comp. int. notes mat’ d June 10,
1867 ami Oct. 116. 1868..................
B’ da o f Texas ind’ t y .........................
Treasury notes told)......................
ll’ d s o f Apr. 15, 1812, J^n. 28, 1S47
& Mar. .1, 1848...................................
Treas. n s o f Ma 3,63...........................
Temporary loa n ....................................
Certiii. c l indebi’ e s s ...........................

$1,509,COO 00 $ ..

$1,633,103 00
3,220,690 00
252,0 0 00
118,011 64

2,0 >7,700 00
252,000 00
147,211 64
148,0(0
347,792
188,510
12,000

!8 Q,900 00
360, 92 U0
188,510 00
1 ,000 00

Total

00
00
uO
00

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

5,792,113 64 $ . ...............

6,1)03,103 64

12,4u0 00

$ 301,290 oo

B E A R I N G NO I N T E R E S T .

*356,065.1)5 00 *356,066.815 00
35.859,323 -*0
36 6 5,83 s 0)
16,307,20 i 00
21,672,560 00

Gold certi. ol d ep osit.,

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

407,721,368 40

414,413,4J> 00

$1,310 00

............. $6,692,116 60

REC A T I T U L A T IO N .
$

Bearing coin interest..
Bearing cu r'y interest..
Mat..red debt ..............

$
$
2,050 00
........... .
.
. ...............
3 0 , 9 0 00
............... 6,692,116 60

*

2,107,876,650 03 2,107,878,703 00
125.457,3.0 00 124.092,3*0 00
5.702,113 64
6,103,403 64
41 >, 115,4y5 i.O 407,7.1,368 40

A ggregate............................................
C o in & cu r.m T reas...............................
Debt less coin and currency.........

2,653,750,838 61 2,615,394,502 04
............... 8,356,336,60
1Li ,u0 j,9.<3 i 4 lio,23>,l97 0 j 5,229,503 49 .............
2,512,744,865 10 2,5.9,1^9,005 01

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

13,583,860 09

The following statement shows the amount o f coiu and currency separately at
the dates in the foregoing table :
COIN A N D C U R R E N C Y IN T R E A S U R Y .

C o in ......................................................... $104,203,363 12 $108,3^8,912 96 4,135/67 84
C urrency.................................................
6,802,023 41
7,896,561 07 1,096,935 o5
Total coin Sr, enr’e y .............................

11 /05,993 5 4

116,235,49.03

I he annual interest puyub;e on the debt, as existing

5,229/03 49
A p iil

$ .................
.................
.................

i and May 1,

It*C9, compaies us follows .
A N N U A L IN T E R E S T P A Y A B L E

ON

A p r ill.

P U B L IC

DEBT.

M ay 1.

Increase.

Coin—5 per cen ts...................................$11,079,163 00 $11.07*,46> 00
*4
44

6
6

“
44

lcsttl....................................
(5-iO’ s )..............................

17,020,641 00
96,.56,597 00

17,020,644 U0
9>,lA?rOOO

Total coin m erest............................. $124,256,7 6 00 $124,256,829 00

Currency - 6 per c e n ts . ......................
44

3

44

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

Total currency inter’ t............................




$3,351.139 23
2,053, 5J 00
$3,409,289 20

Decrease
$

........

12 00

$193 00

$ 3 /5 1 , 39 20
2,014,200 00

41,930 00

$5,363,339 20

$10,950 00

NE W YORE STATE RAILROADS.
The following table exhibits the capital, cost, earnings, &c. o f the principal steam Riilroads in the State o f Ne.v York
during the year ending September SO, 1808 :
Capital C °st o f
Payments
To+al Length o f T ons o p Piipsongers Total c’ t Earn’ g j Farn’ g?
Total
ParFto -k ro d and
m’ ta for
Tot a1
for
from
fund d loafin g road laid frei *’ t car- carried o f tran-1from
p^id n. equipm't.
debt.
d^bt. in miles ried 1 nvle. o n '1 m l e . portat on. papa. freisih/ earnings, interest. div.
Adirondack Companv............... $1,1 S3.000 $2 1 >6,579 *''15,000 S48\715 25.ro
178 - 24
$£,123 $1 '.777 $ 0.90i 1
158 376
$ ....
$....
AiT-any and •usquehanna
. .' 1.86/3 3 0,387,456 2,802,000 560,010 125 00 4,250,199 7,081,361
808,004 208,822 248,931 535,8 .’3 174,468
Albany ..nd Wes* >to^kbr‘dge . 1.010.0 0 2 4H.056 1.389.559
38.00 20.094.534
8.512,596
A'lantie and Greit Western . . 2,779 81? 5,871.375 2,999.990 106,462 49.14 17,633,616 3,061.8 3
9*2
298,672
99 095 370,9*5 486.559
Avon. Gen 8 e * a 'd Mr. Moiris..
28.8 8
1.538
217.3 5
11.400
17,33?
8.176
1 -4.2*0
20.000
43.812
418,617
8.215
15.50
Buff lo. o-ry and Pittebarg. ..
163.471
68.793
12/718 1,431.466
700.000 376,231 43.2)
8.206,745
17\4‘ 0
5/971 154,76 L 2 '8.080
buff lo and Erie ..................
6/0\0()0 #,■18,801 3.7( 0,000
88 00 37,44 (,161 26.660,146
66,527 540,000
6;6.i63 688,307 1,291.828 2,146,915
) nff lo. New Yo k and E r ie .!!!’.
9*0.000 3,SW.'ii >0 *,3Sti,0u0
142.01
Buffa’o and Washington.............
11.176
10.8-2
21/88
428.47*2
675.350
1/0?
363.106
49,900
Caynga an •Sn qieh^'na . . ..
768.304
S4.61
30,6 2 141,564 174/1*1
580.110 1,183,012
5.350/ 04
183.637
53,020
Elmi a Jefferson & Can nda:gua
500.000 1,177 381
47 00 10,731.419 3 86‘i.n t
490 700 192.317 241.033 377.813
Elmira and W illiam-port...
1,000 o o 2,218.000 1.K70.WW
414.769 158 834 3)9.410 rOO.776
78 00 17.661.4 JS 3.852.3 >1
Erie Railway.....
................... 41302,210 56,480,000 2 , 38.1,800 4,893,136 45* O' 595,699.235 121,3 2 /8 4 11,716,163 2,744,416 11 >25,73914346,872 1,934,644
Hn eon and Boston.. . . ! . . ! ! . . . ! *
175.00(1
2 »3,' 36
17.33 3 457,541
67-1,781
H dson RE er........................
13,9'■>:TOO lfl.-.8\9-9 6/74.960
1,167 144 01 88.8i6.929 95 853,03? 3,793.319 2,000,475 2,988,523 5,523,612 433.093 1,003,880
Lon*_r reland .................
3,000 0 0 4.4<T,,8 5
18,59 >.514
1‘ 5 9H8 356,12) 279,724 683,330
54,955
825.0 0
75,000 123. Of)
M iddlefn. Uni< nv v. Water Gap
108 50 l
341,870
38.846
133 041
4,81-?
«,373
11.963
212.390
13 0)
10 8'1
**«nt- ornery and E rie.................
10.27
•»5 096
31,638
7,S<8
22/06
8,110
150.055
287.-01
176,000
5,0.0
87.624
260 560
New Y rk Cent al........................ 2S,7‘ 0.100 36,007,007 11,45 ,'0 4
297.75 260,H9,7;6 201.639.514 9,238,163 4,06 ’,791 9,491 42714'8'.3( 3 857/ 03 2,1-0,248
New York and lne1in " .............
114,559
28 1,168
125.000
106 655
' 2i . ( 0)
8 00
3,96",090
New York a id f’ arlem,'?............. 7,000 000 10.240 45-2 5.016.325
130.75 15 852,537 29,632.0 >7 1.772/83 1.095,201 1,208.576 2,756.233 8*5,467 589.423
>ew Yi i k and New Ilaven. ! . . . f,0 '0.0 '0 7,151,526 1,011.500 239.749 15 29 7,20 >.413 67.218.167 1,419.465 740.713
43,235 856.9 6
63,570 000.010
N< rthern ( f New J rsty)
524.226
70, 53 279.36 1 21.349
150.400
400,(00
541,215 5.306,'25
>14,1 7 184.026
47,873 21 *-5
Ogthn^bu rg & L ke Champlain. 4 41/51,0 5.517.2(6
83,149 118 00 29,! 65 222 5,029 543
2,311 170.573
8 9,100
747.2P0 175,874 786,673 987.087
0 ~v» ego and Syr cuse ............ .
39,6 8
39.573
2 350,471
4.(0',8'*3
177.869 1 ’ 3,112 105,-69 969.031
482,41 0 1 898.754
573 50 1
4,000 ?6.29
R n el « r nd S a r a 'o g i............ 2 S50 00 5 5 *4.459 1.500.00)
811 799 1 514,869 107,629 171,750
U5 0) 28,2C3,88? 15,355.890 1,0*8.860 5 9 5 /u
K me, Wat rt’ n & Ogdensbi rg. 2.5 0,0( 0 4,( 00,0 0 1,5 (..' f“7
S50.893 4 9.253 574,455 1,137.2 8 126,016 240,000
271 IS'*.63 17,785,678 13,804.116
t-choiiarie V alley .........................
1,540
82, 02
47 830
i 29 636
6.611
7.408
4 599
4 38
25,248
13.257
S5,0f0
St;i €ii Im nd ...............
173/411
20.898
600,000
356 a. q
49,500
77,801
200.0( 0
2,798 "24
65 COO 18 00
4,555 277,6->2
Steri ng « u in .’. ! . . ! .......
47;2S1
47/09
23,1 3
»28
23.275
8 000
85' ',000
7 60
486/94
18 199
6,600
501.122
Syracu e. Birg amto i & n . Y ... 1,470 130 3,468,1 5 1.745.0! 0
847.8 '0 164 234 3 7 /3 '4 559.(128 117.601
11,112 81.00 21/08 327 6.2M.467
Troy n i ■*t n .......................
1.07,111 2,28.981 1,575.000 443,289 34.91
5,1)2,041
4.70 ’.755
272,155 201.688 289,133 517.100 204,324
Ut' a and Blao* River................. 1,207,2 4 1,531.858
76,641 169 952
36,517
44.64
72',563
2 ( 98 999
83/94
S3,0l0
96, 98
53,079
31.594
Utica, Chen ango & ausqueh.V . 1,351/93 1,454,* 81
90,397
43 00
2S3.550 1,413.955
5 4 /6 ?
7,621
10.16
44,180
56,445
5,658
09,000
199,162
289,515
9,485
85,000
....
86/27
Warwick Valley...........................

Name o f road.

YORK
S T A T E R A IL R O A D S .

[M ay,

m

N hW




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CIVIL SERVICE— THE VIEWS OF MR. JESCKES ON THIS MEASURE.
This measure, it should be remembered, deals only with the inferior
officers, whose appointment is made by the President alone, or b y the
heads of Departments. It does not touch places which are to be filled
with the advice and consent of the Senate. It would not in the least
interfere with the scramble for office which is now going on, or which
fills with anxious crowds the corridors o f the Capitol. It relates only
to the appointments which may be made in secret, which seldom meet
the eye o f the reader o f newspapers, but w hich are a hundredfold more
numerous than those which await the confirmation of the Senate, and
without which the goveinment could not be carried on. W hen I speak
o f candidates and officers, it will be understood that I refer only to this
subordinate class; those which long custom has held to be the sport o f
the political whirlwind, cannot seek shelter under this measure.
There is a general confidence that the head o f the government will
use all his power under the Constitution to improve the service, collect
the revenue, prevent thieving, and punish the thieves. But for this
purpose he must have aid, which existing laws do not afford, and that
is precisely w hat this measure proposes to give to him. It furnishes
him with means, not now given by the laws, o f testing the fitness o f
every candidate for the place to which he seeks appointment, and also
o f testing the unfitness o f any one who now is or who hereafter may be
in the service. The end being desirable, as all agree, the present ques­
tion is, solely concerning the means o f accomplishing it.
F or this purpose this bill gives the President power to call to his aid
a sufficient number o f competent persons to perform the work o f selec­
tion well and promptly. In the first place, he may appoint four com­
missioners, who are specially charged with the full performance o f this
duty, and the execution o f all necessary and incidental pow'ers. They
may call to their aid such persons of learning and high character as they
may select, and such officers o f the civil force, or o f the military or
naval, as the heads of Departments may designate. The exigencies o f
the service and o f the times no longer require the establishment o f a
separate department with the Vice President at its head, for the proper
and independent discharge o f these duties. These commissioners, with
their assistants, will constitute a civil staff, through whom the President
and the heads o f Departments can obtain the knowledge concerning
their subordinates, which it is impossible for them to obtain personally.
This is their duty, their function; nothing less, nothing more. The
power o f appointment remains as before ; the responsibilities o f office
are unaltered. It is objected that if the board has the power o f decid­




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OP

M R. JE N C K E S .

[ d /t t y ,

ing upon qualifications and of rejecting for incompetency, it practically
has the power o f appointment. This notion results from the confusion
o f thought which mistakes the duty o f rejection for the power of selec­
tion. The duty o f the board is performed when they declare the candi­
date qualified. They perform the sifting process by which the incompe­
tent are kept back. They may certify ten persons as fit for a certain
grade o f office,'yet but five get appointments. The Departments take
for novitiates ihose certified to be the best, but these do not receive
commissions till their merits are tested by probation.
The preliminary examination determines only the best apparent qual­
ifications; it is the probation which secures or loses the appointment.
Elementary learning, such as readbig, writing, spelling, geography, and
arithmetic are to some extent necessary qualifications for all officers.
By competitive examinations you ascertain who are the most facile in
these acquirements; those who make the best show are placed upon
probation, until their other qualities are tested, and if they fail in this
trial they must stand by and give place for others o f equal prestige.
By the competitive examinations wre ascertain what education the can­
didates have received ; by the probation, their character and fitness are
developed, or their unfitness disclosed, and no one receives a commis­
sion till he is found worthy o f it. Under the present system the com­
mission is given first, and the qualifications of education, character, and
personal fitness are ascertained afterward. Although unfitness become*
apparent, yet all the influence which procured the appointment i*
brought to bear against the removal. It is easier to shut the doors
against incompetency, than to “eject it after it has once gained admission
into the service. The proposed commissioners are the doorkeepers o f
the entrances to public employment, to inspect the evidence o f each
candidate to the right o f admission. Government employment should
not be a school for the uneducated, or a refuge for the incapable, or an
asylum or charity hospital for the indigent and unfortunate, as it is now
tco often held to be, but a service for the capable and industrious, to
whom it opens an honorable career.
OF THE COMMISSION.

Tne success o f the proposed reform o f course depends upon the char­
acter and qualifications o f the men who may receive the appointment
o f commissioners. Although it is admitted that there are men qualified
f>r these high duties, yet it is intimated that such men will not find
these places, and that the places w ill not seek such men. The most in­
sidious, the most persistent, the most specious, and the most hopeful




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attack upon the system are made at this point. W h o shall examine
the examiners? asks the gentleman from Pennsylvania, (M r. W o o d ­
ward.) W hat reform can be expected, again he asks, from a board o f
politicians? It is insinuated that they will be mere partisans, corrupted
by political ambition, and be swayed by all the influences which that
passion yields to. N or are there wanting suggestions o f venality and
grosser corruption. The expression o f the belief that a sufficient degree
o f virtue is attainable for such places is met with a continuous derisive
sneer.
And I confess that all the venality, the frauds, the corruptions, the
nepotism, the incompeteney, the reckless disregard o f the public inter­
ests which I have met with in the civil service, have not impressed me
so much with the necessity o f this proposed reform, as these insinua­
tions that the reform itself would be impracticable from the supposed
entire absence o f public virtue, both in the appointing power, and in
the persons likely to receive these appointments. It is the expression
o f a widespread belief that profligacy is the rule and not the exception
in our political system ; that the stream is poisoned at its fountain ; that
the government is given over to its corruptions and exists bv them, and
not in spite ot them. It shows that those who represent the political
element, and seek to manage the government for their own ends, affect
to believe that integrity, honesty, honor, and patriotism have died out
from among us, as they affected to believe, eight years ago, that the
race o f brave men had become extinct among the masses o f the A m er­
ican people.
But as I believed in their courage and patriotism then, so I believe in
their integrity and sense o f honor n o w ; and that I know, and that the
President knows, many men who would select our civil officers wilh as
much conscientiousness and care as our military seivaut.s have been
selected— men who would no sooner permit an incapable, a drunkard, a
knave or a thief to pass by their scrutiny into a place where the public
money was to be handled, than our generals would have placed a coward,
a traitor, or a renegade upon duty at an important outpost, or to lead
a charge in an uncertain battle. There are heroes in civil as well as in
military life, but their deeds seldom swell the poet’s song, or find men­
tion upon the historian’s page. Y et it is to such civil heroes that nations
chiefly owe their prosperity and happiness. I have faith, too, that c o m ­
missioners who perform their duty justly, will gain the confidence o f
the great majority o f the people, and that the moral weight o f that sup­
port will enable them to resist all influence which would seek to swerve
them from an honorable com se.




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[1 /a y ,

W H Y SUCCESS M A Y BE HOPED FO R .

The great element o f success in the proposed system is the encourage­
ment and development in the civil service o f the sentiment o f honor;
that h'gh tone which spurns bribes and the seductions o f profligate am­
bition ; that patriotism which dominates all selfish interests, and that
resolute energy o f purpose which sacrifices everything to the peiformance o f duty. W hen I have seen our young men by tens o f thousands
at the call o f duiy, urged b y patriotism, leave all the allurements o f
home and the chances o f success in peaceful life, to bear the privations
o f the camp and the march ; to brave “ the leaden rain and iron hail ” o f
battle, and the lingering torture and slow death o f the prison, to save
their country from dismemberment, I feel that I know that from these
same men there may be found a sufficient number who will hunt out
and exterminate the enemies within the lines, and face the corruptions
o f office as unflinchingly as they faced death in war. 1 do not believe that
where honor and duty w oik together, with fair reward in either branch
o f the public service, that the dollar is almighty to corrupt, or that the
chances o f politics can wholly deaden the conscience. It is in this faith
that I advocate this measure ; and if it is not sound, then a government
honestly administered is not practicable among men.
TH E

M ODE O F

SE LE C TIO N
AND

C O N SIST E N T

T H E O R Y OF

TH E

W IT H

TH E

O R IG IN A L

P R A C T IC E

GOVERNM ENT.

There are some who pretend to think, and perhaps believe that they
do think, that the proposed system is an innovation upon our republican
theory. It is, on the contrary, a necessity arising from the growth of the
republic, a dtmand of its intense and immense vitality. The republican
idea is not that all are equally fit to hold office, but that all should have
a fair chance to obtain office through fitness for it. “ Equality is equal
start for all.” W hile the republic was small, and contained few more in­
habitants than the present population of the State of New Y oik, it was
possible for the President and heads o f departments to gain sufficient per­
sonal knowledge of all persons from whom they would select their sub­
ordinates. It was no more difficult than for a general of division to re­
commend the promotion o f a meritorious subordinate to fill a #acanev.
Competitive examinations and probations would be of little use when tLis
personal knowledge existed, and the choice was exercised conscientiously.
But the multitudes by whom this government must be carried on, and
the greater multitudes from which they must be selected, have outgrown
all personal knowledge and supervision. Some test must be applied to
all candidates; some judgment must be bad upon their qualifications.




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349

This measure proposes to have the judgment of an independent buarJ
of qualified persons, and that access to this board shall be denied to none.
W hose judgment will that o f such a tribunal supersede ? Not that of
the President, for it is physically and mentally impossible that he should
personally inquire into and decide upon the qualifications of those admin­
istrative subordinates in the cases where the appointment is vested by
law in him ; not that of the heads o f departments, for it is not within
their power to decide personally upon the fitness of their subordinates,
except those with whom they come in contact in their respective offices.
If they should personally undertake this task, they must neglect all other
duties. W hat Secretary of the Interior could personally decide upon the
qualifications of his Indian agents or pension office clerks, or Patent Office
examiners? The Secretary of the Treasury has graver duties to perform
than to select the many thousand instruments through whom he works,
by personal interrogation. Those duties are graver than have ever de­
volved upon any of his predecessors. The management of our immense
debt, the questions concerning the currency, loans, interest, redemption,
fluctuations, or resources, which are constantly coming in upon him, may
appal the stoutest heart and overtask the most cunning brain. Though
his hair may ,be as black as the raven’s wing on entering office, it may
become blanched as the snowy owl’ s before leaving it. In order that he
may be spared to perforin those grave duties in any manner it is necessary
that he should be relieved from all inquiries concerning applicants for
office.
SO

A C T U A L JU D G M E N T

N O W O B T A IN E D

U PO N TH E FIT N E SS O F C A N D ID A T E S .

Under the present system of whom do the President and heads o f de­
partments actually inquire ; whose judgment do they get upon the persons
who receive these minor appointments ? I f every member of the House
of Representatives should, upon the instant, answer this question, each
answer would be the same. W e all know how this business is done, and
although the people do not all know, they are rapidly becoming informed.
In fact, the appointing power obtains nothing which can be called a judg­
ment upon the questions of fitness and character. It is only a designation
on account of political or personal services of persons not believed to be
unfit It is a way which custom has sanctioned o f paying political debts.
Men who would scorn to take a dollar of the public money without right,
will not hesitate to place a personal or political friend in a situation
where he receives the public money, without giving full consideration for
it. The private political debt is paid by quartering the creditor upon the
public Treasury. Is the office thus solicited and passed over to a friend,
any less a bribe because it is not a gift which can be valued in lawful




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money ! Is the person who thus imposes an unfaithful servant upon the
public less guilty of his peculations than the criminal himself? Is it any
salve to the conscience to say, that if your man had not been accepted,
perhaps under the present system a more incompetent person would have
been ?
PATRONAGE ”

SH O U LD

N OT E X IS T .

But the point which I make here has a graver and deeper significancs
than any question concerning the method of using the patronage system
as it now exists. I maintain that such a system has no right to an exist­
ence in this republic. The three great departments of this government
are distinct and independent, each sufficient for its appropriate sphere,
and all necessary for a harmonious whole. Each department is also a
check upon the other, and those who are charged with duties in one, can­
not properly interfere with those who are charged with different duties in
another. The executive department overshadows the others ; the duties
with which it is charged are the entire execution o f the laws and the ne­
gotiation of treaties; and for the proper discharge of these duties that
department is responsible to the people and to the representatives of the
people. Congress should furnish the means for the performance o f these
duties, and, as the representatives of the people, should see that they are
well performed. They should keep watch and ward over this mighty ex­
ecutive power, and see that it is used only for the proper administration o f
the government o f the republic, and not for corruption, for personal am­
bition, for perverse partisanship, or for any form of tyranny.
Above all things, the body exercising the legislative powers, supervising
the exercise o f all other powers, and without whose co operation no other
powers can be exercised— that which holds the purse, and which alone
can authorize the use o f the sword— should never surrender its indepen
dence, collectively or individually, to the department which merely admin­
isters without the power to provide itself with the means o f administr. t’on.
W e should never forget that in the republic the representatives of the
people are nearest to “ the primal springs o f empire,” which are the peo­
ple themselves, and should never relinquish or compromise their indepen­
dence while performing their high duties.
Believing this, I must express the conviction that it was an unfortunate
hour for the republic when the representatives of the people abdicated
their high functions, and consented to become the recipients and dispen­
s e s of what is called “ executive patronage.” That is, they beg the Exe­
cutive, who is charged with the faithful execution o f the laws, to seek its
instruments in such a manner, that the members of the legislative bodies
can pay their political debts by designating the persons to whom the




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351

executive and administrative offices should be given. Each office thus
bestowed is a link in this chain of “ executive patronage.”
But the executive should have no patronage. The word “ patronage”
implies a bestowal by favor of what would not be obtained by the reci­
pient by desert. That department should seek the most capable persons
to transact the business of the people. Its high offices became degraded
when their chief consented that they should be the instruments of such
base uses. This surrender first introduced the sordid element into our
politics, and caused the high tone of honor, high character, and eminent
talent to begin to disappear from what has been becoming more and
more a dishonored and dishonorable arena. W hen members of Congress
became brokers of offices, as well as legislators, all their acts and votes be­
gan to bear the suspicion o f being commercial transactions. This unholy
alliance between the executive and legislative departments, which the
Constitution created to be distinct, separate, and independent, has
wrought no good to either. It is an intermingling o f the personnel o f
the two which the law does not allow. It has paralyzed the executive in the
administration of the government by destroying its independence. It has
prevented the revenues from being collected, and caused the public moneys
to be squandered. Tt has imported the alien curse of “ patronage ” into a
government which ought to give an open career to all. In a republic,
which must always be divided into parties, it has debased their contests
into struggles as to which partisans shall fill the public offices, instead o f
developing a noble strife for the success of principles and measures upon
which the prosperity of the country is believed to depend. More than
any one cause it has tended to estrange one portion o f the nation from
another, and to embitter the feuds and inflame the passions which at last
lighted the fires of civil war.
Now, when this long and bloody conflict has ended, and the grass is
growing over its graves; when the republic is being reconstructed upon
the principles of the immortal Declaration, its original corner stone, it lias
seemed to me wise that in matteis of administration we should also return
to the principles upon which our fathers set this government in motion.
I would restore the executive to its original independence, and remit the
legislature to its appropriate sphere. W hat the bill proposes is simply to
furnish means to the Executive to obtain, independent o f dictation from
any quarter, competent and faithful persons to perform the duties required
of that department by the Constitution and the laws. This is the origin
the aim, and the scope of this measure. The commissioners and their
assistants are the eyes, the ears, and the mind o f the Executive for the
selection o f instruments; they have no power, no patronage ; they can
neither reward friends nor punish enemies. It is true that they may not




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CIVIL SERVICE--- THE VIEWS OF MR. JENCKES.
I

[dfajl,

do their work as well as all would wish it to be done ; they can be but
men, and consequently fallible instruments ; but no one can deny that they
will be belief than no instruments at all. Even if this board should degen­
erate into a partisan machine, yet in course of time it must become the
instrument of different parties; and it seems to me better, if our offices
are to be tilled with partisans, that we should secure the best material o l
each party by this mode of selection, instead of some of the worst, as we
do now. And it is the worst ot bad logic, as well as the poorest o f com ­
pliments to say to the President that because he may fail to select the
four men best qualified for this board, that therefore he should not have
the aid which this bill gives him, but be obliged to select through the pre­
sent more fallible and less impartial instruments the more than forty thou­
sand officers within the scope of this measure. The same rule applies to each
one of the forty thousand, that those who argue against me seek to apply
to each one of the four. The false logic is too apparent, and the corrupmotive which advances such sophistry cannot escape detection. Under
the present system the range of selection is confined to the personal and
political friends of the politicians who push their favorites. Under the
proposed system the choice must be made from the whole American
people. The constituency is as numerous as the nation. W hy should
not the republic have the choice of its best sons for its service, instead of
being obliged to grope around among the refuse for its servants? W hy
should it not go at once into its vigorous forests of native growth for its
timber, instead of endeavoring to pick out some passable stick here and
there from among the political driftwood of its periodical freshets?
I have heard it said by a member of a former Congress, I might say
more than one— Is a y nothing o f any member of the present Congress—
that he thought lie could choose better officers for his district than any
board of examiners whatever. Each of such former members might have
spoken, not his belief only, but the truth. In no case have I been disposed
to question it, but it never seemed to have occurred to those former mem­
bers that the selection of executive and administrative officers was no part
o f their constitutional duty. It was just what they were elected not to do.
They had no more right to claim or exercise any portion of the executive
power than of the judicial. I can fill a volume of quotations from the
fathers to show how unwarranted, by authority or tradition, such a claim
is on the part of members o f the Legislature. It is one o f the many cor­
ruptions that have threatened to change the character, if not destroy the
existence of this government, by t e intermingling of the functions of
the branches which the Constitution created as separate and declares to
be distinct. The evil of some of these attempts has been so glaring that
they have been cut off by penal statutes. Ons was the seeking of con­




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CIVIL SERVICE— THE VIEWS

OF MR. JENCKES.

363

tracts by members; another, the use of influence at the departments for
any purpose for a consideration, and the soliciting o f offices for hire ot
money. It has been found necessary to purge Congress o f these corrup­
tions by prohibitory and penal statutes. So far have these statutes goneas to prohibit a member of Congress from being solicitor for a claimant
in the Court of Claims, from acting as attorney for any claimant before
any department or public officer, and even from arguing a case in court
for a fee in which the government is a party. The great, the chief o
these corruptions which yet remain unprohibited and unpunished, is the
attempt to gain control o f appointments to office, the wielding of the socalled executive patronage, and the exercise theieby o f a share in the
executive power.
LEGISLATIVE AND EXECUTIVE DUTIES SHOULD HOT BE INTERMINGLED.

Upon this subject I speak only for myself. I do not know that the
opinions o f any other member of Congress will, in this respect, coincide
with mine. I do not intend that my words shall express a criticism upon
either the language, the opinions, or the conduct of any other member of
Congress. The constituency which I have the honor to represent, not
inferior to any other constituency in any respect, elects one o f the repre­
sentatives o f the people in the Congress of the United States. It is his
duty to scan closely the measures propose d by the executive department
to vote for furnishing means for carrying on the government according to
the views of the administration, when convinced that these demands are
warranted by law, and are in other respects reasonable and proper, and
for denying them when not needed, or when the means might be used for
improper purposes. In the district and among the people I represent,
the government o f the United States is felt through its officers o f customs
and internal revenue; indeed, few districts acknowledge the tax-gatherer’s
presence by larger contributions; and is welcomed by its postal conve
niences, the presence o f its judges, and its occasional and somewhat fitful
aid to commerce and manufactures. It shares with all other districts an
equal right in making laws for the whole country, and sends a representa­
tive here for that purpose. But it is no more a part of that representa­
tive duty to seek and dispose o f executive offices, than to solicit pardons
for traitors or condemned criminals. It is a part of his duty to prevent
the appointment of incompetent persons by general law if he can, if not
by personal remonstrance.
But if, as a matter o f personal or political favor, he goes to the State
Department to beg a consulate, or perhaps something higher, for a friend,
or to the Treasury for an office within its gift, he is made to feel, if his
natural instincts are not sensitive enough to be impressed before going
3




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.'o jf,

there, that he surrenders his independence h e a legislate! wl en In aciepls
the gift, and that the person and the power which grants his request will
not be slow to claim his assistance in the Capitol when it is needed,
know there are ingenious ways for covering up this barter. The Secretary
may say that he defers to the supeiior means of knowledge and to the
judgment o f the member in selecting his appointee, and may claim the
member’s vote upon an exceptional measure, upon the ground of allegiance
to party. But, nevertheless, the bargain is made. Perhaps I could select
as good executive and administrative officers in my district as any board
o f examiners could choose for the government, but when I am tempted to
enter upon this business, I am checked by the reflection that I should be
a mere volunteer. The people have not charged me with it; the Consti­
tution does not require it o f a legislator; the Executive has not yielded
it ; and its exercise would seriously interfere with the performance of my
proper duties.
The Constitution contains a clause in restraint o f bribery; the laws
enacted to carry that clause into effect are full of penalties upon the use
o f money and the receipt o f it by and among legislators. I do not see the
difference between the bestowal o f the gift of the nomination to an office
upon a member, to be passed ov r to his friend, a political creditor, and
the largess of a measure o f coin for the same purposes. It may be a
peculiarity of my own mental vision, but I cannot think I am doing my
countr} service by becoming the almoner of my party in the distribution
ofadmini trative offices, when at the same time I am assuming obligations
to the executive power which are inconsistent with my position as an in­
dependent legislator. It is my duty to aid the government in procuring
the best service that its salaries will bring, in every district and in all
localities where the flag floats; and that result I ain endeavoring to secure
by general law, with such persistence and ability as have been alotted me.
But no provision in the onstitution, no law, no healthy custom, author­
izes the blending of the legislative and executive duties in this illicit man­
ner. I do not belong to the executive depaitment, nor has that depart­
ment any claim upon me as a representative to relieve it from the proper
and responsible exercise of its duties, or to stifle my criticism or choke my
opposition to their improper exercis ■,
inviting or permitting me to
share its power. If I perfoim the duties with which I am charged under
the Constitution, I must stand aloof from the other departments o f the
government, and exercise the utm >st vigilance which I possess, and which
my constituents expect o f me, to see that the officers o f the other depart­
ments perform the duties which the Constitution and the laws require of
them ; and if the laws are weak and insufficient, to urge a remedy by new
and wise legislation, which, with regard to one defect, I believe I am now

d oin g .




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THE PRACTICE AND ITS RESULTS IN THE FIRST FORTT TEARS OF THE
GOVERNMENT.

W e all know how in the early days o f the republic, appointments to
civil office were the subjects of personal care and supervision by the Pres­
ident and heads of departments. The correspondence as to the ch ira ter,
fitness, integrity, and patriotism of candidates was thorough and exhaust­
ive. When the testimony concerning qualifications was balanced or
doubtful, a personal acquaintance was not unfrequently sought, and it8
results determined the choice. The exercise o f this intelligent care pro.
duced its legitimate results. For the first forty years of the existence o f
this government under the Constitution, no people ever had a more faith­
ful and efficient body o f public servants. Frauds, peculations, and defalca.
tions in the civil service were almost unknown, and so heinous was the
offense deemed, that the few perpetrators, in almost every instance, fled
the country. Personal supervision by responsible and capable chiefs was
possible in those days, when the numbers o f the force were few. The
service was honorable ; its members were respected ; removals for cause
were few ; political opinions were not deemed a cause ; and though tvery
commission limited the term o f office to the pleasure of the President, it
was practically for life. Under that system the revenues were faithfully
collected, the public money honestly kept and disbursed ; our prosperity
increased; the direct and indirect taxes, save the customs, were removed ;
the government, although generally called an experiment, gained the con ­
fidence of the people and o f the world ; its credit was strengthened and
remained unimpaired ; its revenues were increased ; its debts incurred in
its two great struggles for existence extinguished..
TH E

CHANGE

AND TH E T IM E O F IT U N F O R T U N A T E .

It was especially unfortunate that the change which made the civil
offices of the government the spoils o f party, and the government itself
a political machine, operated for the benefit of a party, took place at
the time when the receipts from customs exceeded all lawful expenditures;
and were canceling the debt. W hile the Treasury from this source was
being filled to overflowing, the people did not feel the burdens of taxation
and did not scrutinize closely the details o f administration. They grew
heedless of the extent and unmindful o f the consequences o f the vicious­
ness and of the corruptions that were eating into the life of the rep iblic.
I f it were not that everyone is now made to feel the pressure o f the great
national debt, the price o f the nation’s life as the former debts were of
liberty, there would be little hope o rousing the natio to overthrow the
vicious political system which from forty years sufferance has almost
become an accredited custom.




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CIVIL SERVICE— THE VIEWS OP ME. JENCKES.

[May,

THE ANTICIPATED RELIEF.

This nation, yet in its yonth, has bad to struggle for its life with two
enormous evils. One, the curse of slavery, had coiled itself like a serpent
around the yoimg republic, and when its black folds had encircled every
limb of the government, it sought to crush out the spirit o f liberty, the
soul of the republic. The effort of the nation to free itself from the
crushing grasp of this reptile enemy was the greatest civil war of all
times. While every energy was thrown into this struggle, another
equally insidious and dangerous enemy, born o f the strife itself, enveloped
and almost paralyzed the force which finally laid the first foe dead at its
feet. This second serpent is the debt which now oppresses the nation,
and within whose folds these thousand corruptions which we complain o
are bred and have their existence. It is true, as argued by Mr. Woodward
of Pennsylvania, that if we did not have this debt, and the necessity
attending it, o f raising and disbursing immense sums o f money, we should
not have these corruptions in their present magnitude. The proposed
reform is one of the methods of strangling this monster also. When the
■energies and intelligence of the people are bent upon this enterprise there
can be no doubt as to the result. This young nation will deal with its
debt as with slavery, and both, like the serpents sent to strangle the
infant Hercules, will themselves be destroyed in its vigorous and conquer­
ing grasp. It will hardly have commenced its career till these two ene­
mies shall have been annihilated.
It has been demonstrated over and over again, that our tax and tariff
laws call for $400,000,000 of revenue annually, and that but $300,000,000
reach the Treasury. That this missing $100,000,000 is lost by the
incompetency and rascality of some branches of the civil service, has also
been fully proved. Greater care in the selection of our servants will
secure men who will see that this $100,000,000 will be restored to the
Treasury, and enable the government to purchase its indebtedness before
it comes due. I f we find the right men for the service they will find that
lost dollar out o f every four, that quarter out o f every dollar, which eludes
the grasp o f tour present revenue officials. Our problem is to find men
honest enough, intelligent enough, faithful enough to seize that missing
dollar which in the year swells to the enormous aggregate o f $100,000,
000, and toss it into the Treasury, instead o f letting it slide into the pock­
ets o f corrupt officials and their confederates.
WHAT IS GAINED BY COMPETITIVE EXAMINATIONS.

B ut, says Mr. W oodward, this cannot be accomplished by competitive
examinations, and he argues as if the whole scope o f the bill was limited
to these. H e holds them up to ridicule as being the contests o f boys just




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from school, determining nothing but a superior flippancy and superficial
excellence. He does not deem such an academic contrivance worthy of
being admitted into the serious business of life. H e entirely omits the
consideration and value o f the probations. H e forgets that in some
branches of this very business of public employment, a competition is
constantly going on in which the employers are the examiners. W e see
jt in the halls o f Congress every hour. The stenographers who take down
and report every word uttered, have achieved their positions by admitted,
excellence in the most vigorous o f competitive examinations and (rials.
The gentlemen in the gallery over the Speaker receive their credentials and
cards of admittance after a more severe scrutiny into their qualifications,
than any candidates for the government service will ever be required to
submit to. Every live business that is going on around us is organ­
ized on this principle, which is absent from the government service
alone.
This examination into qualifications and character will render ineligible
for the administrative branches of the public service all the idle, the lazy
the drunken, the dissolute, the incompetent, the vicious, the thievish. It
will exclude the shoulder-hitter, the garroter, the repeater, the pipe-layer
the ballot-box smasher, the false oath taker, the ward room bully, the
primary meeting manager, the ballot changer, the smuggler, the rioter,
the peculator, the gambler, the thief. But in this representative republic
the avenues to elective offices will continue to be open to all these. They
may become alderman, mayors, governors o f States, congressmen, and in
some States even judges, by the popular choice. This reform is limited
to an humbler sphere, though one which vitally affects the public inter,
ests. It simply provides that skill and vigor, in striking straight out from
the shoulder, when brought to bear in behalf of either party in a strife to
capture a ballot-box or to smash it, shall not be considered evidence of the
champion’s qualifications for an office in the appraiser’s department of a
custom house, or a clerkship in the State Department; and that alacrity
and facility in doing the dirty work of a party, shall not entitle the person
adorned by these qualities to a place where he shall handle the public
moneys. I have no fear that the persons who seek these lesser places, will
be too learned or too competent. Young men who seek the great prizes
c f life, will not imprison their energies or capacities in this limited sphere.
W e shall not coax distinguished scholars, adorned with university honors,
into post office clerkships, or make them custom-house weighers or whis­
key gaugers. W e shall not require Hebrew and Greek in the Indian
Bureau, or the higher mathematics in the State Department. But we
shall require, and shall succeed in obtaining, fitness for our work.




358

c iv il

s e r v ic e

— the

v ie w s

of

m r

. je n c k e s.

[May,

FIDELITY IN THE MINOR OFFICES WILL SECURE INTEGRITY IN THE HIGHER.

But it is objected that as this measure deals only with the inferior
offices, it will not check the thieving which Mr. Butler, of Massachusetts,
alleges is chiefly performed by those o f higher grade. H e insinuates,
although he has not directly asserted, that the deficiencies in the revenue
are owing more to the vices o f collectors and assessors than to the clerks
and subordinates. But if their clerks and subordinates are honest, faith­
ful and diligent, how can their superiors be dishonest without detection ?
N o one knows better than the gentleman from Massachusetts that the
money is not stolen after it comes into the hands of these great officers, or
into the coffers of the State. These magnates do not boldly commit grand
larceny with comparative impunity, for they are surrounded by too many
checks to make this kind of appropriation safe, it would be as great
folly for them to make such an attempt, as it would be for a covetous
commander of a department m war time to put his hand into the military
chest and convey the contents to his own pocket. Such great embezzle­
ments cannot be effected without a back door to his headquarters, and
convenient and pliable aids, quartermasters, commissaries, sutlers, and
storekeepers— his creatures, ready and willing to join in the public plun­
der. If the dishonest collector cannot have his choice of instruments; if,
on the other hand, all his subordinates are selected for their honesty and
capacity by men over whom he can have no influence or control, then
they are guards over him, as well as over the smugglers he would favor,
and peculation becomes impossible, except by actual crime. Each is a
watch over the other, and if one becomes a thief, detection will be quick
and punishment certain. I do not deny that large sums have been
diverted from the Treasury by the connivance o f the higher officers, but
it has been done with comparative impunity, only when they have had
the designation o f their subordinates, who have been in fact their accom­
plices.
WHAT SORT OF AN ARISTOCRACY IT CREATES.

O f all the objections to the proposed reform the most singular is, that
which denounces it as creating an aristocracy which may tend to change
the character o f our republican institutions. A n aristocracy is generally
understood to be a governing class, which through the chances of fortu­
nate birth, great wealth, family connections, social influence, and special
education are enabled to exercise a controlling power in the governmentW e associate the term with great estates, liberal expenditures, fine equipa.
ges, lordly manners, brilliant assemblies, armorial bearings, and all the
insignia of hereditary nobility. But alas for the comparison ! Within
the scope o f this bill there are not a huudred officers whose salaries are




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over $3,000 a year, and the average is less than $1,200. These are filled
with hard-worked drudges, whose hours of toil are from six to ten each
day. An aristocracy of deputy collectors, clerks, inspectors, mail agentsi
Indian agents, letter carriers, light-house keepers, and tide waiters! It
is true that the bill provides means for obtaining the best persons for
these places; but he who can see an arist>cracy in this host o f subalterns
— in the off'nslve or dangerous meaning o f that term— must be in that
calenture of the brain which can discern green fields in the waves o f the
sea, or observe men as trees walking. It is. a mirage of an over heated
intellect.
If such an aristocracy were created by this measure, we should see the
flower and cietm of it here in Washington. Its lords would be the poor
clerks who perform dusty drudgery in the departments, and beg and
beseech us for an additional twenty or ten pel cent of pay, in order that
thee hhv meet their board and grocery bills; and the queens of that dan­
ger us society would be the poor women who clip and count the paper
currency in the Treasury, or copy records in the Patent Office. These
“ bloated aristocrats” on $1,800 a year, and these “ flaunting ladies” on
$900, may disturb the dreams o f the gentleman from Illinois |Mr.
Logan], but the Constitution can withstand their insidious plottings.
Al.honuh we deal only with subalterns, there is not enough in this aristocratical notion to bring out of it a new farce of “ High life below stairs.”
It runs itself into the ground without comicality.
It is true that they form a class by themselves, excluded from the actual
business of the world, and seeming to be connected with the busine-s of
the State, earning a miserable pittance by reluctant labor, their ener ies
paralyzed, and their hopes extingnished by the uncertain tenure o f their
employment; but that th^y should ever become one o f the dangerous
classes is a new if not a patentable discovery. Among them are some
noble, faithful, earnest, hard-working men and womeD, worthy of respect
and deserving of honor. W ou ld that they were all such, and that here­
after they may be, is one of the objects o f this measure. I have not met
with one of this better class who has not said to me, make your tests by
examination and probation as rigid as you please; we will gladly submit
to them if, after having passed them honorably, our offices shall thence­
forth become permanent and respectable. They know and feel, and the
whole people are beginning to perceive that the aristocratic element in
our system is the patronage which bestows its gifts upon favorites, which
removes faithful public servants from caprice, and which places the worthy
beneath the worthless.
That merit shall have the places it deserves is the true republican doc­
trine, and the measure which is devised to bring forward and advance




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CIVIL SERVICE---- THE VIEWS OF MR. JENCKES.

[May,

merit, and merit alone, in the public service, is the keen edge o f the axe
to the root of these alien, corrupt, aristocratical practices. Its benefits
■will be at once felt in the better spirit and higher tone which will be
developed in each officer. Hitherto the position o f all these subordinate
officers has not been merely a service, but a servitude. The mode o f
obtaining office, and the servility necessary to retain it, have brought into
action the worse qualities of those thus serving. But when the officer
obtains his place by his qualifications for it, holds it during efficiency, and
can be advanced by merit, he becomes independent o f the courtier’s or
politician’s arts, and his best qualities are developed instead of his worst.
N ot the least beneficial effect of this measure in this era of emancipa­
tions, will be the abolishment o f the servitude o f office, which has been a
blight upon the service and a curse to the republic.
I admit that if the measure should be strictly enforced, the government
servants would become a class with distinctive qualities. In that class
would be found only the qualified, the honest, the faithful, the capable
the energetic, the patriotic, the competent, while the opposites o f all these
would be turned back at the doors of the examination halls. It brings
into the public service only the skilled laborer, whose education has been
in a great measure completed before he receives his pay from the people’s
m oney; while under tLe present system the people pav the greater por­
tion of those who are thrust into their service while their education is
going on, and which in many cases never is, and never can be, completed.
The proposed law elevates the meritorious and rejects the unworthy. If
this be “ class legislation,” make the most of it.
The most disingenuous o f the attacks upon this measure is, that it
creates a life tenure of office in these subordinates. The present bill is so
drawn as to remove >■ny possible pretext for that charge. It merely holds
on to the faithful officer, as long as he performs his duties efficiently;
when he falls below the standard it puts him out. The interest o f the
government only is regarded, not that of the servant. It may be cruel
in many cases to the old and meritorious officer, but it is the hard condi­
tion upon which he is allowed to serve at all.
It is also argued against the provision for promotions for merit by the
gentleman from Illinois, that it might be used unfairly, as he intimates
some advancements were made by boards during war time. Again we
meet the same false logic that was used with regard to the commissioners
Because individual cases o f favoritism or incorrect judgment may occur
in the administration of a system framed for just ends, therefore no such
system should be established at all, but every thing should go by favor
and the consideration of merit be entirely excluded. Because merit might
not in a few cases get the desert to which it is entitled under this system




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therefore merit should not have the chance to win desert at all in the
public service. This is the sum of that so-called argument.
N or is it a valid objection to the measure that it does not include the
the higher officers. By the Constitution these are left to the exclusive
jurisdiction of the President and Senate. It is a most insiduous opposi”
tion to a measure that it does not go far enough. It is a pirt of the false
logic I have already commented upon, that would argue that we should
not attempt to do any good, because we do not undertake at one effort
all that may be supposed attainable. But the limit in this case is not o f
my seeking; it is found in the Constitution itself. The most that can be
done in that higher sphere is, to give the higher powers the use o f the
means which we create. The bill proposes to do this. For the results we
are not at all responsible, for they are now, and must continue to be,
beyond our jurisdiction or control.
WHY THE EXPERIENCE OF OTHER COUNTRIES SHOULD BE TAKEN
ADVANTAGE OF.

It is objected that the examples drawn from other governments, “ des­
potic or monarchical,” “ never can or ought to become a rule for a free
republic.” “ It is cne of the great vices of the bill,” savs he, “ that it is,
not built upon the American ideas of government, but upon those o f the
Old W orld.” He says, further, that cur Constitution “ starts all the peo­
ple evea in the race of life, and recognizes no distinctions except such as
they create themselves,” This is precisely what this bill proposes to
secure to every citizen, according to the spirit o f the Constitution as the
gentleman interprets it. Across the avenues to public employment are
now placed bars which are taken down only for political and personal
friends of the person who holds the appointing power, or for those who
have exerted influence for the party to which that person belongs, or to
those who may work for that party, if admitted within the magic circle o f
office. This measure proposes to throw down all these bars. Every one
is to have a fair chance. Every young man in the country is to have the
opportunity, if he chooses, o f competing for the privilege o f entering the
public service, and to be entitled to the right to enter it, if he proves that
he has prepared himself for it better than his competitors. Its principle
is, that the people have a right to the service o f the best men, and that
the best men have the best right to serve the people. I f this be not the
true idea o f the republic, my studies have been in vain. And even if the
selection should be confined to the party in power, the honest application
o f this measure would secure the services of the best material from each
party as it came in power, instead o f admitting some of the worst of each
as under the present system.




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[M ay,

But the idea that we should not take a hint from the improvements in
the machinery of administration made in other countries, because their
governments are “ despotic and monarchical,” is as ridiculous as it is pre­
posterous. The same rule would require us to reject the steam-engine
the railway, and the locomotive, because they came from Great Britain,
and the art of printing because it came from Germany, and all inventions
and discoveries in the arts and sciences which may originate among the
subjects of the emperor of the French, or the autocrat o f all the Rusdas.
These free trade men upon all articles o f manual manufacture would be
prohibitionists upon ideas and inventions. They forget tha' the science
o f government is progressive, and that all improvements in it are the
common property o f the human race, to whom governments of some sort
are a necessity
The great family o f civilized nations are continually bor­
rowing from and giving to each other, and gaining by the exchange. It
never could have entered into the mind of any but a Pennsylvania Demo­
crat, who has been educated in the belief which he still clings to, that the
administration o f Andrew Jackson was the perfection of civil government,
that we should not seek and receive lessons from the experience of other
civilized nations, especially when that experience is in t e ine of our own
innovations upon ancient traditions in opening a career for the children
of the people, and not merely for “ privileged classes” and “ aristocratic
ranks,” or “ the younger sons of a landed nobility.”
W e should remember that our present system o f appointments to office
is of monarchical origin, and is copied from that o f the parent nation.
Our fathers adopted the best system which they knew of. They did not
invent any. The offices which they created were to be held at the plea­
sure o f the President. The commissions for all inferior offices within the
scope of this bill, still read that the office is to be held during the pleasure
o f the superior from whom the appointment is received. This, in 1187,
was the best known mode, and the fathers o f the republic adopted it as
the best. It was not till some years later that the French republic dis­
covered a better. But, like many good things evolved in that Revolu­
tion, it was lost sight of among its companion evils, and has but recently
become apparent to the civilized world. A nd when its value has once
been discovered, we look further and find that it has existed as an imme­
morial usage, in the most ancient o f civilizations, and that it is the secret
of the long continuance o f the government of the greatest o f the oriental
nations. Like many other arts and inventions, it was known to them
before our civilizations were born.
W e are constantly borrowing ideas in jurisprudence and in legislation
from other countries. All our jurisprudence is based upon that of the
country from which our first colonists emigrated,— England, monarchical




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England. Our government itself, with an executive chief, our represen­
tative legislature and independent judiciary, are all copied from the same
model. W e have made what we think are many improvements upon
that system, but if we should reject other improvements made in the
parent country because first made there, we might as well reject the
parent system itself. Underlying all our constitutions, all our legislation,
colonial, State, and national, is the great common law of England ; a sys­
tem of jurisprudence whose merciful maxims, wisely administered, have
done more for the improvement o f the human race in civil government
than any utterances save those upon the Mount— the common law o f
England, which is to-day the rule o f action for more millions of the
human race than any other system o f jurisprudence which ever emanated
from man’s experience; whose vigorous root and giant growth have sent
its offshoots over the land and under the sea, wherever colonies of the
parent nation have been planted, on every continent and in every clime;
which have again taken root and flourished with a vigor equal to the
parent stock; who fair flower has been the peifeet freedom of thought
and speech to all whom it shelters, and whose ripe fruit is the perfect
eqnality of all men before the law. It would be as unwise so reject any
improvements upon that law, as to attempt to reject the law itself. A nd
as of the law, so of improvements in administration which are akin to it
Nothing can be more foolish than for any man to believe that all wisdom
dwells in one man’s head, or in the practice and policy o f any one nation.
W e render to other nations far more striking results of experience in civil
government than they can give to us, for in them history but repeats
itself in the main ; and while we absorb yearly some hundreds o f thou­
sands of their citizens, we should be unwise to reject the prastices by
which they make their administration more perfect and their governments
more secure.
THE ECONOMY OF THE MEASURE.

In its economical aspect I also ask for this measure the approval o f the
House and of the country.
The gentleman, Mr. Woodward, o f Pennsylvania, has figured up the
annual expense of the commission, including all salaries and incidental
expenses, at about $60,000, and I think they would not exceed that sum.
He omits to estimate the credit to which it would be entitled from the
receipt of fees; nor does he reflect that the sum o f the salaries o f the
appointment clerks now employed in every department, and in the princi­
pal post offices and custom houses exceeds all the salaries and expenses o f
the commission. This mote in his eye prevents his seeing the hundred
millions that we lose for want o f some system like this. On the day
when this measure was defeated by a majority o f two votes in this House




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[May,

in the Thirty-Ninth Congress, a fraud was detected in the Treasury, per­
petrated by a clerk who had procured his appointment under an alias,
which could not have been d~ne if the proposed commission had been in
existence, to an amount which would have paid the expenses of a commis­
sion for a year. W h ile the bill was under debate during the session of
the Congress just closed, the amount discovered to have been lost in the
drawbacks frauds in a single custom house, and which never could have
been committed under the proposed system, would have paid the expenses
o f the commission for at least ten years. I speak only of particular
instances of discovered embezzlements. W e all know that the amount
which annually disappears from our revenues, would pay the expenses of
the commission for a thousand years. W e hire the reapers that the har­
vest may be gathered; but parsimony like that which begrudges the
expense of this inquest, would let the grain rot on the ground before it
would pay the hire of the laborer.
Nor is this loss alone in the failure to collect the revenues ; it is almost
as flagrant in the expenditures. The chairman o f the Military Committee
in the last House declared on this floor that out o f every dollar appropria­
ted for the benefit o f the Indians but twenty cents was ever received by
them. We have just appropriated $4,500,000 for their benefit, and on
his estimate eighty per cent o f this sum must be a dead loss. W e have
also just appropriated $8,000,000 tor the collection of our internal reve­
nue, about five per cent on the total receipts; while in other countries,
with a well ordered revenue service, it costs less than two and a half per
cent for collection. In the customs the cost of collection is about equally
extravagant. Much of the loss is due to positive dishonesty ; nearly, if
not quite, an equal amount to incapacity. W e do need an accession of
intelligence as well as integrity to this branch of the civil service, although
from what has been said in former discussions some members do not seem
to think so. I have seen custom house clerks who knew no more of the
foreign weights and measures in the invoices placed before them, and o f
the coinage in which the articles were valued,.than they did of Sanscrit;
and appraisers who had no more idea of the manner in which the goods
they were called upon to value were manufactured, or of the cost of man­
ufacture, than of the physical constitution of the moon ; and gaugers who
could not read the instruments put into their hands; and collectors and
inspectors to whom the common chemistry o f distillation was as much un­
known as any of the lost arts. A former member of the House o f Repre­
sentatives told me of one who said he could tell the strength and quality of
whiskey better by the “ taste and the bead” than he could by any o f “ these
new-fangled instruments.” It would require numerous relays o f such officers
to obtain correct returns from a single distillery. Th ere is as much




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abstracted and withheld from the revenue under the noses of incapables,
as through connivance with the dishonest. The government is plundered
as well as defrauded; and so great is the extent o f the thievery that the
amount of it would buy up the national debt before it is due. Is it not a
measure of economy to furnish means to the executive department to pre,
sent a check to these gigantic frauds? It may not be thoroughly suc­
cessful; no legislative measure can b e ; no millennium can be brought
about by act of Congress. Yet the service can be improved by it. This
measure simply proposes to fill a void in the present system, caused by
the great growth of the country and its business. The garments which
clothed it in its youth are now altogether too small for it. W e must pro­
vide for its present and future gigantic proportions. W e cannot return
to the simpler and cheaper practices o f earlier days. This government
cannot be set back into the condition in which it was in the days o f Pres­
ident John Quincy Adams. You might as well undertake to remand it
to the colonial condition. All our legislation should be based upon the
possible requirements o f titty States and a hundred million people. W e
shall reach that stature before the heads o f our young men shall grow
white ; and if the government shall have honest and capable men in its
service and no others, the present burdens o f taxation upon the people
would diminish so rapidly, that their previous existence would be as soon
forgotten as was the debt o f the war of independence funded by Hamilton.
Those with whom we deal financially must not only be impressed with
the extent of our resources, but also must be made to have faith in the
honesty of the administration of our revenues. The credit of this govern­
ment would stand higher than any other upon the money exchanges o f
the world, and the government itself would receive what is its just due—
the respect, the reverence, and the love o f all mankind.
Below we give a copy o f Mr. Jenckes’ proposed bill.

A bill to regulate the civil service of the United States.
Be it enacted, <kc., That hereafter all appointments o f civil officers in the several
departments of the service o f the United States, except postmasters and such officers
as are by law required to be appointed by the President, by and with the advice and
consent of the Senate, Bhall be made from those persons who shall have been found
best qualified for the performance o f the duties o f the offices to which such appoint­
ments are to be made in open and competitive examinati ns, and after terms o f pro­
bation, to be conducted and regulated as herein prescribed.
Sec. 2. And be it further enacted, That there shall be appointed by the President,
by and with the advice and consent o f the Senate, a board o f four commissioners,
who shall hold their offices for the term of five years, to be called the civil service
examination board, among whose duties shall be the following :
First—To prescribe the qualifications requisite for an appointment into each branch
and grade of the civil service of the United States, having regard to the fitness o f
each candidate in repect to age, health, character, knowledge, and ability for the
branch of service into which he seeks to enter.




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Second— To provide for the examinations and periods and conditions of probation
o f all persons eligible under this act who may present themselves for admission into
the civil service.
Third— To establish rules governing the applications o f such persons, the times
ano places of their examinations, the subjects upon which such examinations shall be
bad, willi other incidents thereof, and the mode o f conducting the same, and the man­
ner ot keeping and preserving the records thereof, and of perpetuating the evidence
o f such appl caliocs, qualifications, examinations, probations, and their result as they
shall think expedient. Such rules shall be so framed as to keep the I ranches of the
civil service and the different grades of each branch, as also the records applicable to
each brai ch, distinct and separate. The said board shall divide the country into terri­
torial districts tor the purpose of holding examinations of applicants resident therein
and others, ant shall designate some convenient and accessible place in each district
where examioat ons shall be held.
Fourth— To t xamiue personally, or by persons by them specially designated, the
applicants for appointment into the civil service ■f the United States.
Fifth— To make report of all rules and regulations established by the m, and o f a
summary of their proceedings, including an abstract of their examinations for the diflerent branches of the service, annually, to Congress at the opening of each session.
S ec. 3. And be it further enacted, That all appointments to the civil service pro­
vided for in this act, shall be made from those who have passed the required exami­
nations and probations, in the following order and manner :
First— The applicants who stand highest in or er of merit on the list of those who
have passed the examination and probation f r any paiticular branch a d grade o f
the civil service, shall have the precedence in appointment to that branch and grade,
and so on in the order of precedence, in examinations and merit during probation to
the minimum degree of merit fixed by the board for such grade.
Second— Whenever any vacancy shall occur in any grade o 'the civil service above
the lowest in ai y branch, the Benior in the next lower grade may be appointed to fill
the same, or a ne examination for that particular vacancy may be orJered, under
the direction of the department, of those in the next lower grade, and the p c son
found best qualified shall be entitled to the appointment to fill such a vacancy : Pro­
vided, 1bat no person now in office sha'l be promoted or transferred fro > a lower to
a higher grade, unless he shall have passed at least one examination under this act.
Thirr— The light of seniori'y shall be letermined by the rank of merit as-igned by
the board up n the examinations, having regard also to seniority in service; but it
shall at all times be in the power of the heads of departments to order new e (anima­
tions, which shall be c nducted by the board, upon due notice, aud according to fixed
rules, and which shall determine seniority with regard to the persons ordered to be
examined, or in the particular branch and grade of the service to which such exami­
nations shall apply.
Fourth— 'aid board shall have power to es ablish rules for such special examinatior s, and also rules by which any persons exhibiting particular merit in any branch
o f the civil service, may be advanced one or more points in their respective grades ;
and one-fouith o f tbe promoti ns may be made on account of merit, irrespective of
seniority in service, such merit to be ascertained by special examinations, or by
advancement for meritorious services and special fitness for the particular br nch of
service, according to rules to be established as aforesaid.
S ec. 4. And be it further enacted, That said board siall also have power to pre­
scribe a fee, not exceeding five dollars, to be paid by each applicant for examination,
and also a fee, not exceeding ten dollars, to be paid by each person, who shall receive
a certificate o f recommendation for appointment or for |iromotiou, or of seniority, which
fees shall be lir-t paid to the collector of internal revenue in the district where the
applicant or officer resides, or may be examined, to be accounted for and paid into
the Trea ury of tbe United StateB by such collector, and the certificates of payment
o f fe 's to collectors shall be forwarded quarterly by the commissioners to the Trea­
sury Department.
S ec. 6. And be it further enacted, ’ hat said board Bhall have power to prescribe,
by general ru es, what misconduct or inefficiency shall be sufficient for the removal or
suspension of all officers who come within the provisions of this act, and also to estab­
lish rules for the manner of preferring charges for such misconduct or inefficiency, and
for the trial of the accused, and for determining his position, pending such trial.




18691

CIVIL SERVICE— THE VIEWS OF MR. JENCKES.

367

Each member of siid board ah 'll have the power of ad ministering oaths in all pro­
ceedings authorized by this act, and testian ny may be given orally by witnesses in
any hearing before said board or any member thereof, or by deposition to be taken
in the manner prescribed by law, or upon such notice and in such manner as said
board shall, b> general rule or special order, direct.
S ec H. And be it further enacted, That any one of said commissioners may conduct
or superintend any examinations, and the board ra y call to their assistance in such
examinati ons such men of lean ing and high character as they may think fit, or in
their . Tcretion. such officers in the civil, military, or naval service of the United
States, as may he d signated fri m time to time, on application of the board, as assist­
ant to said board, by the President or heads o f departments, and in special cese-t, to
be fixed by rules c r by resolutions of the board, they may delegate examinations to
such persons, to be attended and presided over by one member of said boarl, or by
some person specially designated to preside.
S ec. 7. And be it further ena ted, That the said board may also, upon reasonable
notice to the peis> n accused, hear aud determine any case o f alleged misconduct or
inefficiency, under the general rules herein provided for. and in such case shali report
to the head of the proper department their finding in the matter, and may recommend
the suspension or oismissal from office of any person found gnilty o f such misconduct
or inefficiency ; and such person shall be forwitb suspended or dismissed by the head
o f such department, pursuant to such recommendation, and from the filing o f such
rep rt shall receive nr comp-neat ion for official service, except from and after the
expiration cf any term of suspension recommended by such report.
S ec. 8. Aud be it further enacted, That the President shall have power at any time
to revoke and cancel the commission of any officer appointed in pursuance of the proI isions o f this a ct; Provided, however, That Baid revocation and cancellation shall
not take effect, if said officer demand a trial upon charges to be preferred against
him, in the manner prescribed in this act, within thirty days from the time of being
served with notice of such revocation and cancellation, unless he shall be foun t gui'ty
upon his trial of the misconduct or inefficiency allege . against him in such chargesJ
The discontinuance of an office shall discharge the person holding it from the service.’
S ec. 9. And be it further enacted, That the salary of each of said commissioners
shall be $5,0uC a year, and lhe said board may appoint a clerk at a salary of $2,500
a year, and a messenger at a salary ol $900 a year ; and these sums, and the neces­
sary traveling expenses of the commissioners, clerk, and m-ssenger, to be accounted
for in detail and veiified by affidavit, shall be paid from any money in the Treasury
not ntberwise appropriated. The necessary expenses of aoy person employed by
said commissioners as assistants, to be accounted for and verified in like manner, and
certified by the board, shall also be paid in like manner.
S ec. 10. And be it further enacted, That any officer in the civil service of the
United States at the date of the passage of this act, other than those excepted in the
first section of this act, may be required by the head of the department in which he
serves, to appear before said board,and if found not qualified lor the place he occu­
pies, he shall be reported for dismissal, and be dismiss d in the manner hereinbefore
provided, and the vacancy shall be filled in manner aforesaid, from those who may be
found qualified for such grade of office after such examination and probation, as is
hereinbefore prescribed.
S ec. 11. And be it further enacted, That any person appointed and commissioned
in pursuance of the provisions of this act, may be required to serve in the branch and
grade to which he may be appointed in any part of the United States, where the
head of the department in which he Berves may think proper, and in case of removal
from one place of service to another, the neces ary traveling expenses of such officer,
to be ascertained and allowed according to fixed rules, shall be paid out o f the Treasury.
S ec : 12. And be it further enacted, That all citizens of the United States shall be
eligible to examination and appointment under the provisions of this act, and the
heads o f the several departments may, in their discretion, designate the offices in the
several branches o f the civil service, the duties of which may be performed by female*
as well as males, and for all such offices females as well as males shall be eligible,
and may make application therefor and be examined, recommended, appointed, tried,
suspended, and dismissed, in manner aforesaid ; and the names of those recommended
by the examiners shall be placed upon the lists for appointment and promotion in




368

TAXING OF BORROWED CAPITAL.

[May,

the order of their merit and seniority, and without distinction, other than as aforesaid,
from those o f mate applicants or officers.
S ec. IS. And be it further enacted. That the President, and also the Senate, m ay
require any person applying for or recommended for any office which requires con­
firmation by the Senate, to appear before said board and be examine 1 as to h;s qual­
ifications, either before nr after being commissioned; and the result o f such examina­
tion shall be reported to the President and to the Senate.

COMMISSIONER DELANO'S DECISION UPON THE TAXING OF BORROWED
CAPITAL.
On the 30th ultimo, the Solicitor of Internal Revenue delivered an opin­
ion on the appeal o f one of our leading W all street firms against the
taxing of the borrowed money employed in their business as brokers;
and upon the strength o f the Solicitor’s conclusion, Mr. Delano confirms
the assessment of Assessor Webster, against which the appeal is made.
This decision affords a new illustration of the proneness of revenue offi­
cials to interpret all doubtful cases of claim arising under the law, in
favor o f the Government and against the people. This policy is impolitic
and mischievous. It encourages the idea that the Government is hostile
to the people, and not their creature and protector. Congress passes the
law : if it is not clear in its application to any particular class or case, the
official should refer it back for Congress to determine its intention, and
make it clear if it desires. And when power is given to a Government
officer to decide a question in dispute, he takes a very limited view o f his
duties, when he plays the part of an advocate, and gives the Government the
benefit o f the doubt. The true principle was well laid down by Fred­
erick the Great o f Prussia, in giving instructions to his judges upon their
appointment. “ I f a suit arises,” (he was accustomed to say) “ between me
and one of my subjects, and the case is a doubtful one, you should
always decide against me.” In the interpretation of statutes, this is the
rule which invariably prevails in our courts, and especially where the
statute is penal, or in the nature o f a fine or tax. On the contrary, how­
ever, our revenue officials appear to act as if the faintest show of authority
in the law was sufficient basis upon which to found a decision in favor of
the Government. Just such indiscreet zeal for the collection of the utmost
dollar o f revenue, is what renders taxation odious, and creates dissatisfac­
tion toward governments. W e could desire no better exemplification o f
this shortsighted policy than is afforded by Solicitor Smith’s argument on
this appeal. He does credit to himself by making up the best possible case
in favor of an unsound decision ; but he does discredit to the Government
by a conclusion which, according to our view, is totally unsupported by
law or common sense; the credit and the discredit, however, are due to
the fact that, as an officer of the Government, he acts as if he thought it
his duty to make a decision in favor o f his client.




1869]

TAXING

o r BORROWED CAPITAL.

369

The whole gist o f the dispute turns upon the question what is the mean
ing of the term “ capital,” as used in section 110 of the act o f June 30;
1864. That section, after imposing a tax of one twenty-fourth of one per
cent per month upon the deposits with any person, bank, association, com­
pany, or corporation engaged in the business o f banking, and a tax of
onetwelfth o f one per cent monthly upon circulation issued by such par­
ties, also levies “ a tax of one twenty-fourth of one per cent each month, as
aforesaid, upon the capital o f any bank, association, company, or corpo­
ration, and on the capital employed by any person in the business of
banking, beyond the average amount invested in United States bonds.”
W hat then is the scope of the term capital as here used ? The appellants,
as we think very correctly, claim that it means the funds properly their
own, used as the basis o f their business, as distinguished from any depoited
or borrowed moneys which their capital proper may have helped to
attract into their hands. These are the Solicitor’s reasons for dissenting
from this construction:
In the first place, as to the term “ capital.”
Ordinarily this word means the
entire stock employed in one’s business. This is n^t denied by counsel for appel­
lants, but they cla m that it has a different signification in this statute— hat it sig­
nifies what a man owns and uses in his business, what the individual me nbers o f a
firm contributed of their own money— “ a permanent ownership of that which
constitutes the financial strength o f the organization.
I carnot concur in this construed n. It seems to me that the term includes all
the money employed and used in the business no matter from what source it is de­
rived. It is immaterial whether it is borrowed or is the separate or joint proper y
of the memoers of the partnership. Is it used in the business and does it contribute
to the profits or suppossd profits of the business? If it does, then it is capital
within the meaning of section 110, and is liable to taxation. The manifest spirit of
that section is to tax all the sources from which profits can arise. It is the use that
is made of the money and the priv lege of using it that is taxed, rather than the money
itself. Thus private bankers are taxed upon capital and deposits. These are their
only sources o f profit. Banks are taxed upon capital, deposits and circulation, where
they have circulation. These are their only sources of profit.

It will be noticed that the Solicitor here absolutely assumes his con­
struction to be correct, without one citation from analogy or usage to sup­
port it. He simply affirms— he does not argue— which is tantamount to
an acknowledgment that his case does not admit of proof. H e might be
very safely challenged to produce a single instance from the phraseology
of the fiscal and banking laws of Congress in which the term “ capital ” is
employed in the sense he attaches to it. On the contrary, throughout
thenational bank acts, the word is used to represent the funds contributed
as the permanent basis of the business o f the banks. And in section 110
of the act of June 30, 1864, above cited, where the items o f banking
resources are separately classified and taxed as capital, deposits and circu­
lation, this meaning is manifestly intended ; for if the term capital covered
all the means employed in the business, there could be no motive for this
separation of items. The Solicitor says the term “ includes all the money




4

370

K A IL W A T COHSOLIBAW ON.

[May,

used and employed in the business, no matter from what source it is
derived.” If it is used in the business and contributes to its profits, them
in his view, it is capital within the meaning of the law. This construc­
tion, however, goes too far even for the Solicitor’s purposes. For, according
to this definition, deposits and the money derived from circulation are both
capital; and as such should be subject to taxation under the impost specifi­
cally upon capital. Both deposits and circulation, however, are distinc­
tively taxed as such, so that Solicitor Smith must either maintain that
these items are to be twice taxed, or that the term “ capital ” ‘has not that
comprehensive scope which he attributes to it, but that it has a nar­
rower and more specific meaning determinable by the general usage of the
word as applied to banks and bankers. W hen he so distorts the common
usage of the term as to make it represent, nut what a banker owns as his
personal means and resources used in business, but » hat he borrows from
day to day, what he owes, he certainly is bound tr. give strong reasons for
such a novel interpretation ; but, strange to say, his interpretation has no
backing but the dictum of authority.
Mr. Delano’s decision subjects banking reserves to repeated taxation.
The funds borrowed by a banker from a bank or other banker constitute a
portion of the lender’s capital on deposits or circulation, and as such are
taxed in his hands; or passing into the hands o f the borrower they are,
under this ruling, subjected to a second tax; and if the borrower should
see fit to again lend them, can to yet a third tax, and so o n ; the Com­
missioner feel justified in assuming, upon a very doubtful point o f inter,
pretation, that the law contemplated such an oppressive injustice ? It
would have shown a much more seemly regard for a great financial intreest had he given the tax payers the benefit of such a strong balance of
probability in their favor, and requested from Congress, hereafter, a clearer
definition of the purpose of the law.
It is unnecessary, however, to discuss the questions arising under this
decision, for they will soon be brought before the courts; we only desire
briefly to call attention to the bad policy the Government is pursuing in
making illiberal decisions under the tax laws, with the hope that wiser
councils may hereafter prevail.

RAILW AY CONSOLIDATION.
A bill is now pending in the State Legislature which we think calcu­
lated to have a very important influence upon our transportation interests.
The introduction of this measure has been apparently conducted with
secresy, for little has been publicly known o f its details beyond that it
provides for the consolidation of connecting roads, but excepts from that




1869]

R A IL W A Y CONSOLIDATION.

371

privilege competing or parallel lines. The bill is generally understood
to have been introduced in the interest o f the parties contiolling, at the
same time, the New York Central, Hudson River, and Hailem Companies.
It is well understood, among capitalists interested in our large State
roads, that a great scheme of consolidation has been definitely deter,
mined upon by the parties controlling the Central, Hudson River, and
Harlem properties, the details o f which have been settled and consent
to whic'1 has been given by the principal parties interested in the several
companies concerned.
The amalgamation is to comprise the Harlem,
or the Hudson River, the New York Central, the Buffalo and Erie and
the Lake Shore Roads, the latter now embracing the Michigan Southern.
The proposed combination inclndes about 1,600 miles of road, with a total
capital of about $150,000,000. This then is the scheme for which
authorization is now being bargained at Albany, and which we expect
each morning to learn has been passed with a few hours consideration,
the press having had no opportunity to discuss it, and the people no
chance to confer with their representatives upon a matter of such vital
consequence.
Indeed, it would appear, from the manner in which this and other im­
portant projects are handled at Albany, that the business of our legis­
lators is not to discuss the merits of measures or their bearing upon the
public good, but rather to determine the consideration for which their
acceptance of the scheme shall be accorded. To this project we think
there is a very decided objection in that its adoption will establish an
overpowering transportation monopoly. It is true, the bill forbids the
consolidation of competing lines, and so far has the appearance o f a
purpose to avoid the odium o f abolishing healthy competition. But o f
what avail will this exclusion be, provided the parallel or competing
lines should be virtually under the control o f the parties who run the
combination 1 If Harlem, for instance, should be left out o f the con­
solidation will any one suppose that, owned as it is, it will be in any
sense in competition with the amalgamated companies ? Or is it to be
deemed an impossible thing, or even an improbable one, that Erie may be
covertly controlled in the interest of the same wealthy combination ! Or,
were neither o f these cases supposable, is it probable that the Legislature
would be able to resist the inducements which so powerful a corpo­
ration could hold out? W ould it not rather so shape its legislation as to
suit its interests as against competing roads! The time is coming when
New York must have other and enlarged lines o f transportation provided.
Not very many years hence we may see the trade o f this port doubled;
and, in that event, we should need double our present carrying facili.
ties. Is there no danger of the growth of such facilities being cheeked




372

RAILWAY CONSOLIDATION.

[May,

and stunted by the corrupt power o f an overshadowing monopoly ? New
roads to be sure might be constructed under the general railroad law, but
the consent o f this monster corporation would have to be obtained; or
the roads would be projected upon such conditions as to make their
' success very doubtful and difficult. Really, therefore, while the bill has
the appearance o f aiming to admit competition, is there no fear o f its
establishing a power which will control and defy competition ? And if
such is its tendency, can the vast mercantile interest o f this city and o f the
W est look upon such a scheme with complacency ?
The cost of transporting Western products to New York has become
a serious element in the question o f our ability to compete in the food
markets of Europe, and to feed our own seaboard population cheaply
enough to place our manufactures upon a favorable basis for competing
with those o f other countries. Upon our whole line of railroad, from the
Hudson to the far W est, we need the stimulus to invention, expedition
and economy which a close competition alone can supply. Without
this, the trade o f the East and the agriculture of the W est must suffer a
constant repression, and the progress o f our national wealth must be
retarded. Indeed, it is impossible to attach too much importance to this
matter of economizing the C03t of carrying. Just in proportion as we can
reduce the prices o f our agricultural products to trans-Atlantic consumers,
can we command the markets o f the Old W o rld ; and in proportion
as we can accomplish that, shall we be able to attract foreign capital and
foreign labor to our shores, and build up our industry and commerce.
What, then, is to be said of a scheme which aims at controlling the
main line of transportation between New York and Chicago, and which,
by its great power and corrupting hand, may be able to control all present
or future lines upon the same route and to dictate the canal policy of the
"State J
W e cannot but think that it is to the advantage o f the mercantile inter■est of this city, the grain interest o f Chicago, and the agricultural interest
o f the whole W est to prevent this project going forward. So far as respects
our own State, the bargain is probably so far consummated as to render
remonstrance useless. The consolidation o f the roads o f this State is,
however, only a part o f the scheme which is to place the main roads
between New Y ork and Chicago under one monopoly. It will still remain
within the power of the Legislatures o f Michigan, Ohio, Indiana and
Illinois to determine whether certain roads of their States shall be com­
prised within this same control.
W e might also enlarge upon the corrupting influence o f this proposed
monopoly upon the politics, the government, the Legislature, the officials
and the general public morals of the State ; but we refrain from doing so,




1869]

LAND AND WATER CARRIAGE.

373

as our desire was especially to call the attention o f the commercial
community to the injurious results to their interests which are likely to
follow from the creation o f this extensive and wealthy corporation.

LAND AND W ATER CARRIAGE.
There are those who believe that railroads will soon put an end to
inland transportation by water. The growth o f the railroad system in this
country has been marvelous, and has had a great influence in the reduc­
tion o f charges for the movement of products.
But so far, in the
neighborhood of all long water routes, railroads have acted as feeders to
them, and have concentrated the traffic ot large regions at those central
points where the iron road has touched the lake or the river. It has been
impossible for the railway to do its business as cheaply as it can be done
by water. In the very nature o f things the balance is largely in favor of
the water route. The difference in the rates charged by either route
has, however, been lessening, and it is but a few days since we read in
a Chicago paper, that the demand for cars on that particular day for
the carriage of grain wa in excess o f the supply, although the Lake
charges to Buffalo were but five cents a bushel. It is claimed by the
advocates o f cheap railway transportation, that this state o f things will
be the rule before many years, and that the railroad will soon monopolize
the business. A t this time wheat is brought by rail from Chicago to
New York for 30 cents a bushel, which is actually less than the cost by
canal, 32£ cents; but of this last sum 20 cents only are freight and canal
tolls. The rest goes for storage, insurance, commissions, elevators, & c ‘
The railroads have carried wheat in the winter at even a less charge than
SO cents, but then and now the charge is no evidence of the cost, and no
proof that profit is made. In fact, the charge is part o f the “ cut-throat”
competition of four or five through lines, and while profitable to the
grain producer, is ruinous to the companies; which, in the task of dis­
tributing breadstuff's to points on the long routes, put their charges at
amply remunerative figures.
It may be interesting to compare the charges made by these two
methods of transportation, in the view of showing their approach or
divergence. The cost o f transferring a bushel of grain from the Mississippi
river by rail to Chicago, a distance of two hundred miles, is precisely
the cost of transportation from Chicago to New York by water, the dis­
tance being some fifteen hundred miles. This is a very wide difference*
but the disproportion is reduced when the cargo is carried a greater dis­
tance by rail, for the cost of handling is the same by the land route
whether the car moves one hundred or five hundred miles. And one of




374

LAND AND -WATER CARRIAGE.

[May,

the heaviest burdens to which grain is subjected is the charge for handling
it at the several places o f shipment. A bushel o f corn is carried from
Chicago via Oswego for 17£ cents, or say 18 cents including the local
charge at Oswego. The railway freight for a barrel o f flour, which weighs
nearly as much as four bushels of corn, is 58 cents from Oswego to
New York, or 50 cents to Albany. The cost o f transporting the same
weight of corn from Oswego to New York is 32 cents by water. From
St. Louis to New Orleans the freight in flour is 40 cents, for a distance
o f twelve hundred miles, a charge that must be reduced if the Mis­
sissippi is to be a rival o f the Great Northern W ater Route from
Chicago.
When we consider the enormous extent o f the transportation business
that reaches New Y ork from the interior, it is difficult to realize how and
where the same business could be done if it was transacted on landEvery barge and every canal boat are floating storehouses. They can
move at will about the harbor and transfer their cargo to a ship in the
East or North river, or at a Jersey dock, or lying moored in the streamThey are limited to no yard or to no particular pier. The freight train
is, however, tied down to an iron track. It moves from one place to
another only with difficulty and at great expenditure of labor and time.
The full train has but little greater capacity than that of a single canal
boat. Twenty cars that carry 10,000 bushels are almost matched by the
single boat which conveys 8,000. Trains must be limited in frequency
and cannot be allowed to run too closely to each other. Delays, minor
accidents the heating o f a journal, track repairing, would interfere with
that frequent succession of trains which would be necessary to transport
the enormous tonnage offering, and they would be very sure to bring on
inextricable confusion.
But commerce will seek the cheapest route, and whatever tends to
remove burthens and lessen charges offers the strongest inducement to
which commerce will respond. Slow freight trains can carry grain and
flour cheaper than fast trains. Charges for handling must be reduced.
Expenses on the water routes must be cut down, and the products o f the
Great West must be distributed through the East at a cheaper rate than
now. The competition o f rival routes does this effectually, as the present
charges from Chicago to New Y o ik , above quoted, show. Competition
is more effective than any labored argument that can be made based upon
any array o f statistics, however imposing.
One error committed by the advocates o f new routes from the W est to
the seaboard is in supposing that the bulk of the breadstuff's from the
West go to European and other foreign ports. Hence the great d*sire to
reach the sea, whether by the St. Lawrence or the Mississippi. The trade




1869]

THE FINANCIAL SITUATION.

375

■with Europe really absorbs but a small fraction of the immense product of
the Western grain fields. The West Indies and South America require
large quantities. But the greater part is consumed at horns, and is
distributed all over the seaboard States, in the large cities, in the manu­
facturing towns, and indeed in the smallest villages. F or this distribution
there is need of the railroad, and very quietly but regularly it does this
work, conveying to all the multitudinous stations and depots the products
which have found their way to the seaboard and to the centres from
which distribution is made. In this distribution, as we remarked above*
the railroad which has transported breadstuffs over long distances at
losing rates now compensates itself by the amplest tariff that its managers
have the face to impose, and they give abundant proof that carriage by
water is cheaper than by land.

THE FINANCIAL SITUATION.
The suspense and uncertainty as to the Treasury policy produced a
short time ago a good deal o f uneasiness in financial circles, the depressing
effects of which were diffused throughout the mercantile and industrial
movements of the country. Now that Mr. Boutwell has told us what he
means to do, it is only fair to look for a general responsive reaction in
business. And this is especially to be anticipated, inasmuch as the policy
which he has marked out for himself is generally approved as sound, con­
servative and safe.
The chief point to which apprehension was directed, was the money
market. The frequent spasms and severe pressure which have distin­
guished the experience of the past six months, and have marked it out
as the most troubled semi annual period known in th ■New York money
market for very many years, has so disturbed the financial machinery and
demoralized financial confidence, that the reaction may be slow. Still as
there is now good reason for anticipating monetary ease for some months
to come, the usual results ofbusiness activity and speculative excitement
are pretty sure to develop themselves before long.
In contemplating the late perturb tions in monetary affairs, it is impos­
sible to resist the conviction that we are in a state o f transition to some new
financial conditions which may greatly modify the future movements of
commerce and trade. In all our large cities, and in this more than any
where else, men of experience tell us that business is changing. Capital
moves in larger masses than formerly, and for the time being the concen­
tration o f the moneyed power seems to be working to the impoverishment
o f the many and the gain o f the few. A year or two ago the banks of
this city would have considered it a violation o f good faith towards their
dealers to attempt to charge more than 7 per cent,— the legal rate o f




576

THE FINANCIAL SITUATION.

interest— for any accommodation which it was possible for the bank to
render. Now there are but very few banks in New York whose books do
not show transactions during March and April at usurious rates. Such is
the change in public opinion, that there is no attempt at concealment. The
charging high rates of interest began with the private bankers ; then one or
two national banks adopted it, and now all have, more or less, fallen into
the practice. This, however, is but one o f the numerous symptoms of the
concentration o f capital in a few hands.
The transition state through which our finances are passing may be
further illustrated by the absorption of our floating capital into fixed forms.
H ow far this process has goue, what prodigious amounts of money have
been invested in the South, in the West, and indeed in every section o f
the country, we may form some idea by noting the vast numbers o f new
buildings which are rising up in every town, city, and village where there
is any industrial enterprise, commercial activity or agricultural progress.
Our railroads are being extended and are doing for the most part a profit­
able business. The great trunk lines of the South are all resuscitating
and several new pathways of commerce are being projected to connect the
Atlantic with the Pacific.
Now all these improvements cost money. They absorb large amounts
from the reservoir o f floating capital and fix it in permanent forms, so that
to render it inaccessible as loanaable funds for borrowers. W e thus have
a severe depletion of the streams of loanable money, and at the same time
there is an impulse given to the demand for loans. Such a state of things
can scarcely fail to produce monetary spasms and except the bank machi­
nery is extremely elastic, commercial convulsions are not unlikely to
occur. It is one of the greatest triumphs of our national banking system
that it has sustained during the past four or five years, such severe strain
and pressure as have been imposed upon it by the negotiation o f the stu­
pendous aggregates of government loans. But that system will win a still
more signal triumph if it carries us through the present financial troubles
and through those of the near future, without any more severe spasms than
those which we have already experienced. During the nexi five or six
months there will be little danger, as the accumulation o f capital and cur­
rency in this metropolis and in the other great financial centers will be such
as to render the maintaining of monetary equilibrium an easy task. W ith
the opening of the Fall trade, however, in October and November, renewed
pressure is likely to be developed, the preparation for which may well
engage the anxious solicitude o f our financial men. So long as the national
banks do not redeem their notes in New Y ork , the only elasticity which
our currency possesses to enable it to meet these recurring strains and
spasms is imparted by the movements o f the Treasury. By what device
Mr. Boutwell will meet the emergency remains to be seen.




1869]

WATERING RAILROAD STOCK3.

377

WATERING RAILROAD STOCKS.
The diluting process which commenced with the currency appears to
be destined to find its way into everything financial. For the last two
years it has had unrestricted sweep in the management of railroad cor­
porations. Most of the leading roads have been subjected to a material
increase of their capital, and, on some the “ watering” process has been
repeated. W e have just witnessed a virtual increase of 80 per cent on
New York Central; it is proposed to make a fresh addition of 60 per cent
on Hudson River, and a similar increase is talked o f on Harlem; Fort
W ayne is promised a stock dividend of 60 or 65 per cent; R ock
Island, it is said, is to have its stock well nigh doubled ; an increase
o f 10 per cent on the consolidated Lake Shore Company is talked o f as
certain ; the Pennsylvania, after an increase o f $7,000,000, makes
promise of yet another stock bonus ; on the East Pennsylvania a stock
dividend o f 100 percent is contemplated; the Macon and Western has
increased its stock one third; and New York and New Haven, after a late
addition of 50 per cent to its share capital, proposes to make a further
liberal distribution o f stock. For the purpose o f illustrating wbat has
been done in the way o f “ watering” railroad stocks, within the last
two years, we select 28 prominent roads, giving, as follows, the capital
stock of each, on the 1st July, 1867, and on the 1st May, 1869, respec­
tively :
July 1 , 1867.
Baltimore & ° h i o .................................................................$16,152,000
B oston & L ow ell.................................................................
1,8^0,000
Boston & M in e .........................................................
...
4,077,000
Central o f N ew Jersey....................................................... 13,000,000
Chicago <fe Al< on ..............................................................
6,311,( 00
Chicago, Bnr'ington & Q uincy.....................................
10,193,000
Chicago & N orthwestern................
26,155,000
Chicago, R ock Inland & Pacific.......................................
9,10 »,000
Cincinnati, Hamilton & D ayton.....................................
8,'30,0r0
Clevtland & P ittsburg.....................................................
5,391,0-0
Connecticut & Pat-sumpsic p r e f d .................................
l,f>14,(.00
Dubuque & Sioux C ity.....................................................
3,662,000
E rie....................................................... ................................. 25,11!,(’00
H udson R iv er......................................................................
9,981,000
Hartford & N ew Haven....................................................
3,000,' 00
111 nois Central .................................................................. 23.386,000
M anett* & Cincinnati...................................................... 12 669,000
Michigan Central................................................................
7,5 »2,000
M ichigan Southern............................................................. 10.600,000
Milwaukee & st. Paul........................................................ 10,998,000
Morris & E s s e x ..................................................................
3,500,000
Nat-hua & L ow ell...............................................................
6 0,000
N ew Y ork Cent al.............................................................. 26,530,000
N ew Y ork & New Haven ................................................
6,< 00,000
N ew P rovid nee & B oston .............................................
1,755,000
Pennsylvania....................................................................... 20,000,' 00
Philadelphia & R eading.................................................... 22,742,000
Providence & W orcester............. .. ..................................
1,750,000
Total on 28 roads.

$2S7,036,000

Increase.
May 1, 1869.
$ 2, 000,000
$18,152,00 >
339.000
2.169.000
473.000
4,550 000
15.000.
000 2 ,0 0 ,000
7.566.000
1.255.0 i0
2.307.000
12.500.000
30.911.000
4.756.000
14.000.
000 4,9(0,000
391.000
3.521.000
5.958.000
567.000
1.822.000
308.000
4.130.000
468.000
82,191,0 H)
57,30^,000
13.932.000
3.951.000
3.300.000
300.000
25.277.000
1,891,010
14.620.000
1.954.000
1.823.000
9 325.000
1.525.000
12.125.1 H»0
4,183,(00
15.181.000
1.323.000
4 S23,000
120.000
720,000
25,094 000
51,624 000
3,000,000
9.000. 000
245,000
2.000. Oi'O
27.040.000
7,040,009
26.280.000
3.538.000
1.900.000
150,COO
$100,684,000

$113,648,000

W e have here the startling fact that 23 roads whose combined capital
in 1867 amounted to $287,000,000 have since then increased their stock
to $400,000,000; showing an average inflation o f 40 per cent; and




378

WATERING RAILROAD STOCKS.

[May,

yet from the proposed stock dividends above alluded to it would seem
that the “ watering” mania is far from having exhausted itself. A
movement so sudden and so sweeping deserves earnest considera­
tion.
W hat then is the meaning o f this railroad inflation ? what its basis!
what its motive ? and what may be expected as its result ? It i-* some­
what curious to trace the reasons successively assigned by railroad directors
for this policy. First of all, it was said that the stock dividends repre­
sented earnings invested in construction, although it has in few cases
been found easy to trace any correspondence between the increase of
stock and the employment o f earnings for such purposes; next, it was
discovered that the land grants o f the roads had become more valuablet
and it was urged that this improved value should be represented in the
nominal capital; still later, it has been found that it now costs much more
to build roads than formerly, and that the capital stock ought to be raised
proportionately ; and finally, it is urged that the amount of stock should
be regulated by the earnings, upon a basis allowing 7 per cent interest for
each 1100 of stock. Stockholders and speculators have not been parti­
cularly careful about scrutinizing the reasons and motives o f this policy;
for its result has, in all cases, been to enhance the market value of the
stocks and afford splendid opportunities for profit. There are, however,
not a few thoughtful capitalists who look upon the “ watering” mania with
grave apprehension, as one o f the worst forms o f the prevailing financial
derangement.
It is not to be denied that there may be good reasons for increasing
the share capital o f a railroad company. In case o f the building of addi­
tional road, laying additional rails not originally contemplated, or making
other permanent construction improvements— it may be deemed more
prudent to issue stock for these purposes, than to take the requisite means
out o f the current earnings; or if, for a succession of years, a moder­
ate portion of the earnings ha6 been devoted to these objects, there can
be no objection, upon principle, to distributing among the stockholders an
amount of stock corresponding to such investments. The late enormous
stock dividends, however, have been carried far beyond the limit allowed
by this principle. In fact, the object of the new issues would appear to
be mainly a speculative one, and no justification has been sought or cared
for beyond the success of the speculation. It is, of course, within the pro­
vince of the shareholders to determine how they shall have their interest
in the road valued or represented. It is, ho wever, a great mistake to sup­
pose that by increasing the nominal capital they in the slightest measure
improve the real value of the property, or augment the revenue they may
derive from it. It may be that upon the basis of the present cost o f con.




WATKRTNO RAILROAD STOCKS.

379

struction, the roads are worth much more than their original co st; an
argument which, just now, is especially urged by the advocates of dilu­
tion. But is it to be held as a sound principle, that the nominal amount
of corporate capital is to be increased with the progress of the general
inflation of prices and of the currency ? It is generally supposed that we
have already passed the climax of high prices o f products and labor, and
that the cost o f constructing roads may hereafter show a steady decline
toward the old level. Are the dilutionists prepared to follow the logic
of their policy, and reduce the capital stock of the roads when the costs o f
construction and the value of real estate have declined? I f not, they
must be prepared hereafter to witness a heavy decline in the market value
of their shares, unless there is a corresponding increase o f business, arising
from the fact that the nominal capital exceeds the real value of the roads.
It is again true that the late and present earnings o f many roads are
such a-, would enable them to pay a good dividend upon a much larger
amount of capital: which fact also is presented as an excuse for “ water­
ing.” But before concluding that this is a sound reason for inditing the
stock capital, it may be well to ascertain the cause and the probable per­
manence o f the improved earnings. In the first place, the increased
cost of construction, within the last six years, have deterred prudent capi"
talists from investing in new railroad enterprises; and carrying facilities
having thus been restricted, the roads have had perhaps aD undue control
over freights. Within the last twelve months, however, new roads have
been projected in every part of the country; and, as the costs of build­
ing decline, the late prosperity of the roads will naturally induce a very
active competition from new lines, materially lowering the present high
scale of profits. The late high prices of grain and cotton have facili­
tated the exaction o f high rates o f freight upon produce generally ; but
just as certainly must the now reduced values o f breadstuff* compel a
reduction in the charges for carrying Western produce. The earnings
basis for “ watering ” is thus seen to be a fluctuating one , and may hereaf­
ter just as reasonably call for a reduction o f capital stock as it now war­
rants an increase.
It is impossible to adduce any really sound justification o f the “ water­
ing” policy. It is, in most cases, simply a deceptive game played by spe­
culative directors, who, after the inflation has been consummated, will be
the first to forsake the bubble, and quietly wait to profit from the ulti­
mate violent revulsion in values; while the attempt to draw out of the
consumers of the country high charges for freight, so as to pay dividends
on the increased stock, is a direct check to our material progress.




380

CLEVELAND, COLUMBUS, ETC., KAILWAY.

[May,

CLEVELAND, COLUMBUS, CINCINNATI AND INDIANAPOLIS RAILW AY.
This property is a consolidation of the Cleveland, Columbus and Cin­
cinnati, with the Bellefontaine Railway Company. The consolidation
was consummated and took effect May 14,1868, but considering that the
official year is to close December 31, the first annual report is made to
cover the joint transactions of the two constituent companies for the full
year.
To this consolidation the Bellfontaine Company contributed (from
Indianapolis to Gabon) 202.60 miles, and the Cleveland, Columbus and
Cincinnati Company (Clevland to Columbus 137.98 and Springfield to
Delaware 49.89) 187.87 miles. Thus the total length of direct track is
390.37 miles, which there are 29.69 miles of second track and 41.26 of
miles of sidings. Equivalent single 4 feet 10 inches gauge track 461.21
miles, averaging 56 lbs. per yard of rail.
The number of locomotive engines in the consolidation was 83, from the
C. C. C. Company 47, and from the B. Company 36, two of which were
replaced by new engines during the year, and eight others wore thoroughly
rebuilt. Steel tyres are being substituted for iron tyres, and so far as
brought into use, have proved to be both economical in general wear and
their entire freedom from breakage.
The number of passenger train cars was, at the close o f the fiscal year,
as follows: 43 first class and 4 second class passenger cars, 10 baggage, 5
baggage and express, and 7 mail cars. Two baggage and express cars
were built during the year. The number of merchandise cars was at date
as follows: 736 house, 239 live stock, 319 platform, and 21 caboose cars.
O f these there were built during the year 18 house and 23 live stock, and
during the same time 13 house, 14 live stock and 18 flats were condemned
and broken up. The increased and growing traffic of the road, however,
demands large additions to this apparently extravagant amount of equip­
ments. The mileage service in all branches for the year is thus summed
u p : Passenger trains run, 768,374 ; freight (including switching), 1,261,755; repairs and graveling, 80,509 ; and fuel, 66,767— total, 2,177,407
miles. The cost per train mile for repairs was 9.21 cents. O f the total
number of passengers carried over the road, viz., 546,377, the through
travel numbered 76,036, and the travel from station to station 470,341.
The result was a mileage of 29,770,918 miles, earning $849,2S3 58, or
2.85 cents per mile. The amount of freight or merchandise (net load)
was 628,356^ tons, and the transportation mileage 95,130,679i miles
resulting in earnings, $1,843,129 82, or 1.94 cents per mile.
The earnings and expenses accounts are given very full. From these
we make up the following :




CLEVELAND, COLUMBUS, ETC., RAILWAY.

18691

381

E A R N IN G S .

E X P E N D IT U R E S .

Passengers......................................... $849,283 f8
F reight................................................... 1,843,129 82
E x p r e s s .............................................
115,114 86
Mails .................................................
6 ,918 00
R e n t s ................
48,901 57
Berea branch. . .............................
8,886 79
Interest and dividends....................
11,941 69
M iscellaneous............................ ..
15,065 33
Earnings L. M . & Col. & X R K.
to N ov. 3 9 ,1S68...............................
8,369 98

Operating........................................ . $1,976,002 65
National and local taxes...............
152,16194
I Net •evenue..28,171 p. c ................ $834,449 03
Bond interest. .$94,935 13 .............
Dividends,7 p.c. 731,244 50 _______ 825,179 63
Surplus.
......................................
| Surplus on consolidation:
|C., C & C. R R .................................
Beilefontaine R a ilw a y .................

8,269 4C
156,048 83
78,283 97

T o t a l... .....................................$2,962,613 62
Surplus Dec. 31, 1868................ $242,602 20

The following is a statement of the earnings and expenses of the con­
solidation for the last five years. They are simply abstract accounts, and
lose much of their value from our inability to compare them with mileage
of passengers and freight through the series of years. The loss in earn­
ings may be attributed to a general lowering o f rates.
Fiscal
,— C C. & C . R . R . — * B d lefon ta in eR .R .—, ,---------- Conjoint— ____ ,
year.
Earnings. E xpenses. Earnings. Expenses
Earnings. Expenses
1864.................................$2,499 348 $1,261,185 $1,74',644 $1,161,744 $4,247,992 $2,425,929
1865 ............................ 2,386,132
1,550,622
1,675,164
1,182, 57
4,061,*96
2 732 879
1866 ............................ 1,933,7 X
1,254,017
1,325,280
973,033
8,258,980
2,227,050
1,228,434
1,487,587
954,920
3,382,474
2,1S3,354
1867 ............................ 1,894,887
1868 ...........................................................................................
........
2,962,014
2,128,165

The dividends paid in August and February were at the rate of 7 per
cent annually. The two previous years gave to the C. C. and C. R .R . 8
per cent; and to the Beilefontaine 6 per cent. The total cost of the rail­
road and its equipments is $11,936,146 30, or $30,605 per mile. The
following is the general balance sheet o f the company, as of January 1,
1869:
Capital stock............................................................................
Lass held by company........................................ ....................
C. C. & C. R. R . bonds ($25,000 falling due yearly)
B . & Indiana R. R 1st mortgage bonds.............................
Less held by company ............... ...........................................
B . & Ind;ana R. K. 2d mortgage bonds..............................
B. &IudianaR. R income bonds.......................................
B . & Indiana R. R. bonds past due.....................................
Indianapolis, Pittsburg & Cleveland R. R. 1st mort. bonds
Indianapolis, Pitts & Clevel’ d R. Jti. 2d mort. bonds.........
Less held by company............................................................
Dividend No. 2, payable Feb. 1, 1869.....................................
Surplus fund............................................................................

$11,620,000
1,159,100 $10,460,900 00
..........................................400,00000
$791,000
51,000
740,00000
....................
16,000 00
..
•• ...
87,000 00
...................
2,000 01
...................
379,CCO 00
$347,000 00
6,000 00
341,00000
......................................... 365,84450
.........................................242,60220

Per contra : the. charges as stated :
Cost o f road and equipm ents.................................
Materials on hand.....................................................
C a s h .............................................. .. ............................
Cash assets.................................................................
Other assets—S . & H . Valley R . R . b o n d s ....
44
“
Real estate......................................
“
“
W ood la n d s ................................... .
“
“
Stone q u a rry ...................................
44
44
Bills receivable.. ...........................
44
44
Insurance scrip ............................. .

................. $11,936,146
................
455,314
................
402,040
.................
137,416

03
19
47
02

$2,000 00
30,691
46,701
4,915
18,646
475

61
04
46
31
00

103,429 42

Total...................................................... .......................................................................... $13,034,346 70

The report of the Board says : The results o f the consolidation have been
satisfactory, each part o f the railway showing its fair per centage o f earn­
ings in proportion to the capital represented. It is the opinion o f the
Board that the mutual benefits to be derived from one organization
between Lake Erie and the Eastern railroad connections at Cleveland,




882

\_May,

HAILROAD EARNINGS.

and the rich agricultural country traversed by the western connections
in Indiana, Illinois and west of the Mississippi, will increase yearly. The
Company have also aided in the construction of the Indianapolis and St.
Louis R.R., and on its completion it is expected that that road will be of
essential advantage to the C . C. C. & Ind. R. R.

RAILROAD EARNINGS FOR APRIL AND FOR THE FODR MONTHS ENDING

APRIL SO.
B y special information obtained from several o f the Companies we are
enabled to compile our monthly statement of railroad earnings at an earlier
period than usual.
There is not so uniform an increase in the earnings for April as was
shown in the previous month, but they are still very satisfactory, and com­
pare favorably with those for the same month of 1808. The largest
increase is shown in the earnings of the Illinois Central, the Chicago, Rock
Island and Pacific, and the Chicago and Alton Roads, while the Pittsburg,
Fort Wayne and Chicago, and the Ohio and Mississippi Roads show a con­
siderable decrease. In the case of the latter the falling off is accounted
for by the trouble between the Erie Company and the Cincinnati, Hamilton
and Dayton, which stopped the passage of through freight for a portion
o f the month ; that difficulty having been favorably adjusted, a resumption
o f the full earnings may be expected.
The receipts of grain at Western ports, which affect so greatly the
earnings o f the principal Western roads, fell off largely with the beginning
of April, and for the whole month were below those of 1868 ; as to the
future, the accounts differ widely, some parties declaring that there is still
a much larger quantity o f grain to be sent forward than usual at this
season, others being equally positive that very little more grain will be
forwarded. The earnings which have been published for the first week in
May, show a considerable increase.
The earnings for April are as follows :
R A IL R O A D E A R N IN G S F O R A P R IL .

1869.

^Milwaukee & St. Paul...................
Ohio & M ississippi..............................
Pittsburg, F t. Wayne & C h ica g o...
St. Louis, A lton <te Terre H a u te ....

....

171,868

1868.
$279,121
1,094,597
288,700
518,800
108,461
415,758
452,4*29
435,629
252,149
770,198
155,388
292,885
49,233
6,112,848

* 431 m iles in 1869, against 280 in 1868.
t Number of m iles open continually increasing.
1869, than in the same month o f 1868.

XIncluding leased lines.




Inc.
$52,027
74,200
76,555
1,065
21,124
24,658
18,480
19,447
285,556

D ec.
$2,2ii>

...

3,944
37,740
40,424
7,641
91,964

Oyer 100 m iles more were w orked in April,

1869]

R A IL R O A D

883

ITE M S.

For the four months from January 1 to May 1, all the roads show an
increase, with the single exception of the Ohio and Mississippi. In the
following table we compare the earnings of the several roads for the first
four months of 1869 with the some periol in 1868 :
E A R N IN G S P R O M J A N U A R Y 1 TO H A Y 1 .

1869.
Chicago & A lt -n ...............................
Chicago & ' orth w e s te rn ...............
Chicago, R ock Island & P a cific...
Illinois Cen ra l..................................
Mar etta & Cinc’n n a t i...............
Michigan C ntral................ ..............
Michigan Sontr era............................
Milw auk e & St Paul....................
Ohio &M esiseippi............................
P itts. F o t Wayne <fe C hicago........
St. Louis, Alton & Terre H a u te...
T oledo, W aba-h & W estern...........
W estern U nion. . . . . . . ...................
T ota l.........

....

1,665,444

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

1868.
$1,097,470
3,477,157
1,171,182
2,086,850
3£0,975
1,390.649
1,531,520
1,488,281
961,378
2,569,336
508,257
1,100,149
175,547

Inc.
$271,915
462,951
231,927
357,673
22,292
112 447
138.815
177,143

17,938,751

2,068,587

Dec,

$129,064
117,661
57,282
113,686
4,792
129,064

RAILROAD ITEMS.
P acific R ailroab O pen . —The following statement o f time and distances is given

by the Western Railroad Gazette:
New York to Chicago, 111 .........................................................................................

Miles. Honrs.911

Chicago to ' maha, N ebraska......................................................................................

491

Omaha t > Bryan...................................................................................................
Bryan toOgnen, U tah..................................................................... . . . . . ....... .
Ogden to Elko, N.vada, via Central Pacific Railroad..................................
Elko to Sacramento, California, via Central Pacific Railroad................................
Sacramento to san Francisco, via Western Pacific Railroad.................................

858
233
2T8
463
117

36ft
24ft

43

10 f t

12ft
3L
3ft

Total............................................................................................................ 3,353
161ft
Thus a total distance of 8,953 miles is made, according to the present schedule ti •e,
in 6 days and 171 hours, actual time, by a traveler’s watch, from which we deduct 3£
hours, difference o f time, when going West, leaving the apparent time consumed in
making the trip 6 days and 14 hours.
A t San Francisco the mails will connect with the various steamship lines running
on the Pacific, and may be landed at Hon lulu in nine days from that city, or 16£
days from New York. They can reach Japan in 19 days from San Francisco, or 25J
days firm New York, or 33 to 34 days from Great Britain—thus beating the British
mails sent via Suez, three to four weeks. The trip between Yokohama, Japan, and
either Hong Kong or Shangbae, is readily accomplished by the Pacific Mail steamships
in from five to six days, which, added to the time in reaching Japan, will give the
through time Decessary to reach either of the above named ports of China. The mails
for Australia, it is thought, will hereafter go via San Francisco, as the Australian and
New Zealand Steamship Company intend transferring the terminus of their line, which
has been running from Sydney to Panama, so as hereafter to tun from Australia to
Taluti, thence to Honolulu, and thence to San Francisco, making 28 days schedule time,
■which will give us monthly mail to Australia in 34 or 35 days through time.
T he C incinnati, H amilton and D ayton and the E bie R ailway D ifficulty
S ettled . — The Cincinnati Commercial o f A pril 29th has the following :

“ We learn, by a private telegram from New York, that the recent difficulty between
the Cincinnati, Hamilton and Dayton and the Erie Railway Companies has been
amicab'y settled. The details of the arraogement have not been made public,
but the main features, we understand, are about as follows : The contract is for ten
years, and goes into effect immediately. The Erie is to have the exclusive use of the
broad gauge track for a through business only; the local traffic, both passenger and
freight, iB expressly reserved to the Cincinnati, Hamilton and Dayton ; the Erie runs
its own trains, and receives and delivers its own freight, at its own expense. For
the use of the track merely, including necessary depot facilities, the Cincinnati,
Hamilton and Dayton is to receive one hundred and eighty thousand dollars per




384

R A IL R O A D

ITE M S.

[May,

annum, in monthly installments of fifteen thousand dollars each, payable in advance
A ll damag e snd losses to be paid by the party causing the same.
“ 1 his arrangement would seem to be advantageous to both roads.
While the Erie
gets all that she needs, the Cincinnati, Hamilton and Dayton at the same time receives
a handsome return on a hitherto profitless investment.
“ Besides the one hundred.and eighty thousand dollars from the Erie, the Cincinnati
Hamilton aDd Dayton now receives from another company twenty-five thousand dol­
lars per annum for track privileges on six miles of road ; thus making its income
from rents alone, two hundred and five thousand dollars, or very nearly 6 per cent
on its entire capital stock of $3,50 , 00.
With such a showing, and such prospects,
the stock of the Cincinnati, Hamilton and Dayton should take rank among the safest
and most profitable railway investments in the United States."’
In this connection it is worthy of rema k that the Ohio and Mississippi Railroad
lost a great portion of i s through freight while the difficulty lasted, and this fact
accounts for a decrease in the April earnings.
— A proposition has been submitta l to the Massachusetts Legislature to consolidate
into oneroa I tne Boston and Lowell, Nashua and Lowell, Nashua and Concord, North­
ern Verm nt Central and Ogderisburg Railroads, covering the entire line between
Boston and Ogbensburg, N. Y . It is prop osed to call it the Great Northern Railroat.
The bill authoiizes the purchase of all the above named roads, an I limits the capital
stock of the new corporation to the capital stock and amount of indebtedness of the
several roads, with the railroad and steamboat lines now leased by them, which the
corporation is also empowered to buy, the whole to be upon ttrms to be mutually
agreed upon, and to be ratifie 1 by a majority of the stockholders cf each roa I at a
meeting to be called for the purpose. It is understo d that all the roads above men­
tioned are in favor of the consolidation. A hearing upon the matter will be given
at a future day.
— The Indianapolis and Chicago Air Line Railroad, by which the present distance
by rail between Chicago and the capital and principal city of Indiana will be short­
ened twenty miles, is contemplated.
The route was partially surveyed two years
ago, an 1it is proposed to have it extend through five different county seats in Indi ina
— Frankfort, Clin.on County ; Delhi, Carroll County ; Montieello, Pike County ;
Rensselaer, Jasper County, and Crown Point, Lake County. The Counties of Jaspar
and Clinton are now wholly wiihout railway facilities, and the construction of the
proposed line will bting these important localiti s in direct connection with Chicago.
The right of way, from Indianapolis to the city limits of Chicago, has already been
procured.
— Steelrails.it is reported, are to be laid on the entire length of the railroad from
Paris to Marseilles. The change from iron to steel will require 137,000 tons of steel.
From experimente made by the company, it has been calculated that in the vicinity
o f the stations iron rails will not last over four years, and on the whole line not over
eight or ten years.
— The Lafayette Gazette says ; “ Indiana will not long be behind her sister States
in the amount and extent of her railroad interests. There are now in running <rder,
within the border of this State, 2,566 miles of first-class railroad. The Tracks, engines,
shops, and all their property complete was "-alued, one year ago, at $164,224,0 0.
The three roads the l have the greatest number of miles of track are the Ohio <& Missis­
sippi, Louisville. New Albany <k Chicago, and the Indianapolis, Cincinnati and Lafay­
ette, according to their old plats; but since the consolidation of the Indiana Central,
Union, and Logansport, and Chicago and Air Line into the Columbus and Indiana
Railway, the latter takes the lead of a ll; and, in a few days, the track to Vincennes
will be added also. The c nstruction o f th» new line to connect with the Alton and
St. Louis Road, is a fixed fact. The Pittsburg and Fort Wayne, and the Cleveland,
Columbus, Cincinnati and Indianapolis Railway,guarantee the means for building it.
The route has been surveyed and p atted, portions of it have been put un ler contract,
and all will be in running order by next Fall. The building of this road will give two
competing parallel railroad lines from St. Louis to New York, via Pittsburg, and both
running through fine coal and iron beds between Indianapolis and Terre Haute. The
work upon the Crawfords ville and Danville Road is progressing finely, and it is
expected the iron will be laid from Crawfordsville to Indianapolis by the 26th inst.




1869]

C H E A P T R A N S P O R T A T IO N .

385

CnEAP TRANSPORTATION.
The subject of cheaper transportation from the West to the East has
attracted much attention of late. The report of the Hon. Israel T. Hatch,
of Buffalo, to the Secretary of the Treasury ; the speech of the same
gentleman before the New York Produce Exchange; the mission of
representatives of New Y ork grain interests to the shippers and dealers
of the lake cities; the action o f the Board of Trade in these cities; and,
finally, the convention o f delegates from boards of trade in the lake cities
at Chicago during the last week, attest the interest that is felt in this mat­
ter by shippers and commercial men. This action and agitation has been
stimulated by the conviction that the cost o f transportation of grain and
breadstuff's is higher than is necessary, that the transfer charges at Chicago,
Buffalo, Oswego and New Y o ik are too great, and to the further fact
that the merchants o f St. Louis and New Orleans are energetically moving
with reference to making the Mississippi the outlet to the sea for agricub
tural products of the Northwest. Other disturbing causes are the agita­
tion in reference to a Niagara Ship Canal, the enlargement of the Welland
Canal, and the marvellous growth o f the railroad interest which menace
the ordinarily cheaper lines of water communication.
Grain and flour will, as a matter o f course, take that route to market
which, all things considered, is the cheapest. Time is not an important ele­
ment. To the millions of bushels of grain in the Northwest which seek
a market various routes are presented, and the solicitations of these are
of various degrees o f strength. Thus far transportation by the Lakes
and the Erie Canal or by the railroads direct to the seaboard have been
the favorite routes. Rivals have risen and grown threatening; direct trade
with Europe has been talked and dreamed of, but there has been no really
formidable competition to the route which has for so many years been
the natural outlet. The fact that the Erie Canal earned over and above
expenses some $3,000,000 last year, at once suggested the thought that
the canal tolls were excessive, and this stimulated an investigation which
has shown that freight and transfer charges could be reduced, and that
the whole business of shipping grain could be transacted at less cost, and
the saving be transferred to the pockets o f the producer and the con­
sumer.
In the discussion of this question of cheaper transportation there are
two classes of reasoners : One believes that the cheapening of freight
must be in the direction of water transportation; the other looks to the
railroads as the certain means for reducing charges and as the command­
ing power in transportation for the future. Into this question we do not
propose to enter at present. Our object is to show that freight and
transfer charges are now too high, and that they can be reduced. T o
5




386

CHEAP

[May,

T R A N S P O R T A T IO N .

transport a bnsliel of grain from the Mississippi to the seaboard, it now
costs 52^ cents. T1 9 details are as follows :
Freight by rail to Ch5cn go....... .
Jn*p< ct on ( n and ou t)........... .
Storage..........................................
Coinm esio a.............................
Freight to B u ffa lo .................... .
Insurauce ....................................
Elevator at Buffalo......................
H and lin g.......................................
Com m issions at Buff ilo ............
Freight by canal to New York,
Espenecb in New Y o rk .............

20

X
IX

<>X
2

.

X

IX

13X

, 3

52X

Total expensea

Of this sum, 40 cents are for carriage, and 12J are for transfer and local
charges. The railway W est o f Chicago receives 20 cents for 200 miles.
Tbe canal, 352 miles, and the Hudson River, 150 miles, requite 13£
cents, of which 6 cents are for tolls. The lake charges for a distance of
more than a 1,000 miles are but 6J cents. The aggregate is about $10
a Ion from Chicago, or $17 from the Mississippi. The charges at grain
elevators vary from cne cent to two cents a bushel. The charge for shovel­
ing is from $2 to $5 for 1,000 bushels. At Buffalo, last year, the transfer
and shovelling charges on 36,754,948 bushels exceeded the canal tolls
by $216,000; and at Oswego the transfer charges a'one on 6,270,406
bushels exceeded the tolls by $15,000. T o this the charge for shovelling
is to be added. It is a cuiious fact that the steam elevators have actually
been in the habit of charging more than the same work could be done
for by hand power. Two cases are cited at Buffalo. In one instance a
cargo of 87,000 bushels of oats was transferred by an elevator in tiiteeii
hours. The elevator fees were $1,740, the cost of shovelling $435 ; total,
$2,175, or 2% cents a bushel. In another case, two vessels were unloaded
by hand, and the cargo transferred to care, at a cost of 1% cents a bushel.
An inspection and comparison of th se figures indicate that in order to
cheapen transportation, it is not necessary merely to reduce canal tolls and
freight charges. The local charges for transfer, etc., also require reduction.
The following statement o f present prices, and estimates for the future, are
made by a gentleman in Buffalo who is familiar with the whole subject:

Lake frelphts.........................
CamJ fr. ii>bis*...........................
Transfer ch rges....................
btute lolls.................................

,-----Frescnt rat’s-----*
orn,
heat.
per ton.
per ton.
$2 3-t
2 91
2 04
1 73

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

$9 U6

/------ Proai ective ------ *
Corn,
V heat.
per toa.
p ir ton
*2 38
$2 38
1 65
1 73
75
75
69
69
$5 62

$5 47

A s the elevator charges at Chicago, Buffalo, and New York are 5^ cents
a bushel, and the shovelling from 1 to 1J cents more, a movement for a
general reduction Las been made. The work can be profitably done at
half the price, and the leading defiers in the ports named have agreed to
make the reduction. It remains then for the Legislature of the State of




1869]

TH E

BANK

R E PO R T S

AN D TH E

LA TE

S T R IN G E N C Y .

387

New York to reduce the Canpl tolls to a proportionate extent, and for
the transportation lines West o f Chicago to reduce their rates. They
now charge from 20 to 30 cents a bushel. The result of this is that grain
is carried past Chicago and as the journals o f that city complain, it can
be carried from Central Illinois half way to New York for the cost of car­
rying it to Chicago alone.
This subject is of great importance rot only to New York City and
State, but to the whole seaboard. It has an interest too for every producer
in the great Northwest, and it is not strange that such vigorous efforts
are put forth to secure so important a trade in the channels now occupied
by it, or to divert it into new channels. The business of the Erie Canal
comes from the West. Only one-ninth of its traffic is local. The residue
is from beyond Buffalo. There are single States in the West which, when
the Erie Canal was dug, had not even a name, that furnish it now more
traffic than all tl at the State of New York now supplies. Year by year
this business increases, a*>d it is the part of wisdom to see to it that the
channel ol trade is eq>'al to the demands upon it, and that the Erie Canal
remains what it basso long been, the great route of transportation between
the seaboard and the West.

THE BANK REPOSTS AND THE LATE STRINGENCY.
W e publish on another page our tabular summary o f the first reporls
made under the new law by tbe National Banks o f this city. In conse­
quence o f the change in the form of the returns, which causes them n t
to correspond precisely with former statements the aggregates are not quite
so convenient for comparative reference, but this difficulty wiil be obviat' d
in the next, as the present form i3 to be adhered to in future, and circulars
to secure this conformity are now being addressed to the National Banks
all over the country. There is one point of view in which the present re­
ports are more valuable than any of those which have heretofore be n
published. For this report was made under such circumstances as pie
vented all cookery of the accounts, and all preliminary preparation,
'ihese returns therefore will afford a very good starting point for future
comparison, and will show with trustworthy accuracy the changes which
take place from time to time in tbe position and strength of the banks.
After the recent stringency, caused as it was by a lack of loanable re­
sources iu bank, we might have expected to have found these institutions
holding a weaker reserve than they really appear to show. The net
amount of their liabilities is reported at $187,000,484. N ow the 25 per
cent reserve which the Internal Currency A ct requires would call for a
legal tender reserve o f about $47,000,000. But the banks really hold
$53,801,622. That is, they are stronger in reserve than the law requires.




388

TH E

BA U K R E PO R T S A K D TH E 1 A T E 8 T R IK G E K C T .

[A fflr y ,

They hold an excess of legal tenders amounting to no less a sum than
$7,051,501 which is certainly a very handsome exhibit. The question
arises, however, how it has happened that with so much strength the
banks were in such distress as to be obliged to charge usurious rates for
money throughout the recent period of financial stringency. Perhaps a
partial answer to this question may be suggested by an analysis o f the
elements of which the reserve is made up.
The aggregate amounts, as we have said, to almost $54,000,000. Of
this sum less than one-third is in greenbacks. The rest is more or less un­
available. Five millions in gold and gold notes. Fifteen millions are in
Clearing House Certificates payable on demand. Fifteen millions are in
temporary Loan Certificates. All this reserve of Certificates bears inter­
est at three per cent. It thus appears that the reserve which the banks
are prohibited by law from lending to the public, and are compelled to
keep on hand as a basis of credit, pledge o f solvency and a guarantee
to the people against panic— this reserve, or thirty.one millions of it, the
banks have lent to the government at 3 per cent or about half the usual
current rate of interest. It is evident that this is an unsafe and undesira­
ble state of things. The greenback reserve is too small for safety, and the
interest-bearing reserve is too large. There are indeed serious objections
to the allowing of banks to draw interest on their reserve at all. A s an
exceptional arrangement to bridge over a season of special drain for
currency, this accumulation of interest bearing certificates may be tolerated;
but the principle should be always held as paramount that the greenback
reserve should amount to atleast twice as much as that part of the reserve
which bears interest. The special drain for currency to which we have
referred, has arisen from the peculiar circumstances of the South and
Southwest, where over fifty millions of currency have been absorbed
during the past few months, and most o f this currency will be very slow
in returning to the Northern financial centres. The ptesence r.f these
interest-bearing certificates in the reserve ot the banks, unfits that reserve
for performing with the requisite pliant elasticity the functions which
devolve upon it. This brings on a rigidity and spasmodic obstinacy of
the movements o f the financial machinery, and a consequent spasm and
stringency in the money market. It is even asserted that a few at least
of the banks exhibited a disposition to exaggerate rather than to mollify
the distress. Certainly some of the private bankers and money lenders
were tempted to do so, because of the large profits which the usurious rates
of interest brought them.
On the whole, the statement before us is amply sufficient to prove that
our banks are in a strong condition, and that although in this delicate and
fundamental arrangement touching the reserves, there is room for improve­
ment, still as capital and currency are now pouring rapidly towards blew
York, and will concentrate here for some months to come, with increas­
ing accumulations, we have one of the most important conditions for ease
in the money maiket, arid for such movements in the financial mechanism
-of the country as are usually productive o f active speculation.




1869]

NORTH ERN

C E N T R A L R A IL R O A D .

389

NORTHERN CENTRAL RAILROAD.
The annual report for the year endiag Decembsr 3let, 1838, shows the following,
earnings :
From Freights .........................................................................................................................$2,928,360 77
“
P a -seig ers................................................................................................................. . 914,76104
“ Fxpreg8 ..............................
9»,5'0 85
“ United States Mails......................................
44,16*1 00
173,570 25
“ Sundry tou rces.......................
Total earninss................................ .. — ...................................................................... $4,151,351 91
The operating expenses w ere.............................................................................................. 2,962,:^27 62
N et revenue...................................................................................................................... $1,189,024 39

The report states : The operating expenses of the r«ad were 71.35 per cent of the
receipts, b ing 4£ per cer.t greater than in the year 1867. The increase of per centage
is to be Attributed to increased si ings ; to the damage done to the lower end of
the line by the flood which occurred on the 24th o f July last; the repairs of
which have been charged to operating expenses, and to the rebuilding bridges on
the Shamokin Division.
The large increase of gross receipts for the year does not show an equivalent
increase o f the net income. put the extraordinary expenses just referred to, together
with the reduction o f rates received for the tonnage moved, will account for the
failure to realize the additional profit.
The average rate received for transportation of freight was 2.22 cents per ton
per mile, a reduction of 38-100 of a cent p< r ton from the rates received the previous
year. The same rates o f freight upon the tonnage of 1*68 as received in 1867
would havo given us an ad litional n t profit of five hundred thousand e’ght hundred
and eighty-i ine dollars and six cents, ($500,889 06.) Tne reduction of rates has
inured to the benefit of the consumer, and is the best eviJence that can be given
to show that the management of the road is not adverse to the interests of the
public.
The advantages to the C ty of Baltimore to be derived from the ability of this
company to reach tide-water we believe, is now thoroughly appreciated ty the city
authorities, and we have no doubt that means will be taken to have the work on the
Union R ilroad resumed and pushed forward to completion.
There hi9 been a very large i crea-e in the co »1 trade over the preceding year.
The coal transported South >n 1868 amounted to 602,025 tons, against 453,919 tons
in 1867, an increase of 148,106 tons. 01 this increase, 26,741 ton9 w re carried to
Baltimore, and the balance 121,365 tons to local stations on this and connecting
roads. The c al transported North, to Elmira and punts beyond, in 1868 was
1 1,677 tons, against 35,619 tons in 1867, n increase of 96, J68 tons. We anticipate
a further increase in this business during the present year.
In 1865 it was determined upon to issue a s:x per cent mortgage of $2,500,000
for the purpose of purchasing equipment, and making such improvements as might
be required. This was done, and about one-half the bonds were sold. But. owing
to the fact of its being a t'nir mortgage upon the pr *perty, we found it difficu’t to
use the remain er at a price we considered them worth; and fin dog tr>o th it im­
provements, which, at the time these bond a were issued, we thought could be post­
poned for some years, had now become imperatively necessary— it was deeme 1 be=»t
to c eate a com-olidated m rtgage and withdraw the b dance of the loin fro n the
market: This has been done. A mortgage of $6, 0 ,0 >0, hearing six (61 pe*
cent interest, payable in coin free from taxation, has been cre ated, an 1 is to be i-sued
only as the former bonds of the com any are retired, either by purchase for the
sinking funds, or by cancellation.
A portion of the $2.50 ‘,009 has been retired and
a like am unt of the rew b nds have been s Id, and we are now offering a limited
number of them at par and accrued interest.
With these bonds we shall be enabled to cancel the fl rating debt of the company,
make the improvements which ernnot b? del »yed— while the funded debt of the
company will not be increased beyond its present amount. And, by the time this
entire mortgage is issued it will be the tint, and only mortgage, except the annuity
fcj the State of Maryland on this property.




390

D E T R O IT

A N D M IL W A U K E E

R A IL R O A D ,

[-3 l a y ,

The regular payments have been made to the sinking f nds during the year. In
the sinking fund for the redemption of the bonds due in 1885 there is now four
hundred and th rty-one thousand dollars ($431,' 00) of these bonds; an 1 in the
general sinking fund we have two hundred and fifty-two thousand five hundred
dollars ($252,61)0), an incr ase in both of one hundred and one thousand dollars

($ 01,010).
R E C E IP T S

AND

E X P E N D IT U R E S

FOR TH E

YEAR

E N D IN G

DEO.

31, 1868.

Expenses o f Canandaigua Div

243,13
Main L i n e ..................... $2,0 7,151
W rights ilk-B r...............
43,788
$2,962,327
sh a m ok iu L iv .................
$77,763 Interest...................................................
434,872
382.895
FI .. i n
“ ................
628,626 D vid< nr’s on capital s t o c k ...............
Ch mung “ .......
160,397 Taxes o capi al s'o ck , & c ................
33,631
’*
Canaudaigna “ . . . ........
233,624 Rent ol S m m 'k iu V a l l e y and
Pot* vi.le Rail o u d ............................
101,167
$4,151,351 Rent ot Elu.i a aud V illiamsporc
C -p it»l s tock ................................... ...
'6(',0-)U
R ii)ro-vi...............................................
165,000
B o d s ....................................................... 1,110,503 R ut o f Elmira, J iff. & Can.
Real eBiaie.............................................
636
R lro id...............................................
25,PC0
D ’ scou t on bonds...............................
95,156
101,0)»
T otal.................................................... $5,4.2,487 S in ting funds........................................
RECE PTS.

E a r n ig s o f
“
“
“

Construction.......................................
T?<al estate..........................................

E X P E N D ir U R L B .

96,497
127,647

Expenses t f M a i« 1 iu ; .......................$l,S93,r65 Equipment..........................................
472,741
“
Wrights Vi 11 15r ................
36.370
$4,997,936
“
Shainukiu D i v ....................
194,252
“
E uiiri
“ ..................
433,2 '.h Floating debt decreased....................
4 1*,551

44

Cheaiung

“ ................

161,519
Total...................... .

F IN A N C IA L

STATEM ENT, D EC.

.................... $5,112,487

81,1868.

A S SE T S .

L IA B L IT IE S .

Railway and appurtena Ct-s............... $8,907,252
Can!on ex e .ifcio ...................................
342 182
Real eet t e ..............................................
641,4-9
Lquipmon*.............................................. 2,120,837

Cipital ito c k -95,978 dia es.
. . . $4,798,909
Funded debt, less si king fund., ty. 91,500417,675
• ills p a y .b le ........................... ...............
I**teres , & c., accrued......................
216,601
In er et o> up on s..................................
12,181
$12,' 11,761 Pay ro l-» and vouchers........................
4941,687
C s h ......... ............
279,622 F re gn roads— as.-enger a ccou n t...
2*,977
Pa-se geragen s .................................
3,825 Foreign roads—freight account. .
11,816
Freight
"
112.013 Individuals and cort orations.........
167,125
Post Uflfic * Department.....................
12,01'
St ick o f Wrispusvide, York & Get­
$12,300,466
ty si urg K ilr >a i t o ..........................
47,595 Profit and loss account acc’ t .............
788,4 5
D ebt •f vv righ evil.e, Y ork & Get yeburg R,-.i ro id C o.
76,4S4
$13 0'8,871
B ond: <i Warren & Frankl’ n Rail­
way C o ..............................................
10,413
Individuals and corporations............................... 309,755
M aterials and sup. l.e s ..........................

225,340

Total a ste .s ........................................ 13,0 8,871
$1,077,. 10

Total expen ses.................................................................................................................... $501,754 74
B alan ce p ou t t o in co m e a c c o u n t.................... .............................................................................

245,306 62

T ota l........................................................................................................................................ $747,061 36

Gold

Earnings.
Product—25,628 flasks o f Quicksilver, at $3o...................................................... $798 840

Less ore account ieduced..................................................................................

90,667

------- $678,173 (0
Profit over $30, on sales o f 5,056 flasks................................................................................
30,562 71
Profit on p rclia es and sales o f 2,764flasks..........................
.3,924 22.

Rente, privil ges, & c....................................................................
T ota l................................................. ..

21,401 43

.............................................................................$747,061 36

DETROIT AND M LWAUKEE RAILROAD.
The report for the year ending 81st December, 186S, shows that the gross truffle and
rents f >r the year were $1.718,09 4 72, being $13,214 42 less th in those of 1867. The
working expenses, taxes and insurance were $1,013,636 06, being $21,116 96 greater
than th se<f 1867. The net revenue is $70!,457 66, being $69,395 26 greater than
that of 1866, and $64,381 38 le.s than that o f 1867. This has been applied to the




1839]

391

NORTHEASTERN RAILROAD OF SOUTH CAROLINA.

interest on (h“ bon’ ed debt existing prior to 1866, $368,685 80 ; in'part towards
inter at on bonda of June 80, 1866, 153,550 ; to sundry discou ts end exchanges,
$5,670 *27 ; to new works and roling stock, $8 ,899 3 ; to rebuilding on acccount
of the fire in April, 1866, $1,5 1 62 ; to new cars on same accunt, $93 08 ; to pay­
ment for naggage and merchandise consumed in that fire, $20,573 15; to old debts
of the Detrot and Milwaukee Rdlway Com pan v, for supplies, $3,588 71 ; to redemp­
tion of bonds issued to the C mmercial Bank of Canada, 30th June, 1866, $100,000;
and on account o f divi lend to Great Western Rad way C mpany of Canada, on pr8
feren e sh res, $73,325; the whole exclusive of interest and divi lend, amount!’ g to
$211, 25 78 ; and after deducting the amount received for insurance on the steamer
“ Milwaukee ” less paid for losses f through freight an l baggage, being net $36,7 17 96,
$175,oo7 82.
he balance to credit of Net evenue, 31st December, 1 - 67, was
$75,210 84, and the balance to credit of that account 31st December, 1868, is
$103,429 61.
The total amount paid on account of the fire o f April, 1866, i3 $368129 74 (less
received for insurance, $ 19,766 66). AH of the second, mortgage bonds due 15th
May, 1866, have been ext nded to 15th May, 1875, except $3,5 0, which have not
been presented; and all the funded coupon bonds due 1st January, 1866, have
beer) extended to the sune date, except $8,217 60, not yet \resented. Of the
coupon bo da due 15th November, 1868, $ 63,'92 50 have been extended to the
same date, and the remainder will be extended from time to time, as presented.
The bonded debt anl stock of the c mpany may be seen on reference to cur
tables o f R i road Bonds anti St< c s 01 a subsequent page.
Ti e following is a comparative statement of the receipts and expenses for the
last five ye srs :
Years...............................

Receipts. W ork ’ g E x.

1864............. .................. $1,3 3,102
1865. ............................... 1,601.735
1866
..................... 1,659.217
1867
................... 1,761,308
1868 .......................... .
1 Tlo.093

$831,226
939,5'.0
959, 23
93 .711
956,t98

Per Cent. Total T?ev. E x. Per Cent.
on
i clndin-r
on
N et Rev.
G ross R e’ s. Taxes <fe Ins. Gross R e’ s, balance.
63.03
$884,758
66.84
$438,<>44
55 54
1,'0 ,7 5 1
5.1.15
690.984
57.79
1.024.155
6172
6^5,062
63 23
992.519
56 35
‘768,789
55.69
l,Ot3,6i«
f8.9J
704,450

Ard the number of passengers and tons of freight carried du fog each of tli 'ee
years, together with the gross earnings then from, are as fallows ;
PA SSEN GERS.

Years.............................Number.
1864 ................................ 403,901
1S65....... ...........................4 9,v.« 4
I860...................................439.453#
1867
........ .................. 4 8 •04
1868 ............................... 43b, 894#

F R E G H T A N D L IV E S T O C K S.

TOTAL.

N o. ions, includ ng
R -c e ip t'
P<t?6rnger
weight o f
excluding
>nd
Live tock.
Storage. &c. Freight '-'cc’ s.
$661,827
165,3 1
$M8,919
$1,280,740
*42,872
1S'»,4 >7
806,196
1 ,6 4 8 ?69
794, ••52
218,810
813.792
1.608,745
827,189
25^,409
818,532
1,675,721
754,861
287,729
901,404
1,055,765

Receipts.

NORTHEASTERN RAILROAD OF SOUTH CAROLINA.
The report for the year ending March 1, 1869, stales the following;
Inl8n7-’ 6*8. In 186S-’ 69.
Dec.
Inc.
Receipts from f eight.............................................. $172.618 32 $151,844*9 $20.-03 43
......
‘k
*• pa»>-e gers .....................................
92.083 76
81, 03 72
7, 85 U4
..........
“
“
mails a n l other sources...........
14,495 67
18,115 78
..
$ 3 /- 0 11
Cperating expenses...................................................

$279.2 ^2 75 $2.54.161 39 $26,6:8 47 $3,620 11
173,055 82 115,439 09

$10j 570 93 $108,7i5 SO
Excess o f n efc income in 1868-Y>9......................................................... ............................ $3.1 8 £7
T he
t in nt* o f the T -e is irer w i’l thow that there remained at the credit o f
profit and I
aecount at the c o-e o f the past year.......................................................... $ 1 0 , 09 14
Since wh c.h it has bten further ciedued wi h r.>ceeds o f t ansportioa lor 1868 and
1819........................................................................................................................................... 1<*8,725 SO
$119,134 44
And charg'd with ir t prest on bonded d bt and cerren1 interrs" ......... $03,665 73
L o - k o f sto^k in Society H 11 a d M rli;o.o’ E r i g e t o m p .n y .........
2,337 55
R ight o f way, pnviuusly unsettled..................................................................
1,011 00
Leav ng a ba’ance at credi. o f profit and loss




97 014 33
$ 22,120 11

392

NORTHEASTERN RAILROAD

[May,

OF SOCTH CAROLINA.

The following will appear as the indebtedness on the 28th February, 1869 :
1,400 first mortgage bon^s, o f $500 each, fine Pepfember 1,186°.................................... $700,000 00
200 second mortgag bonds, o f $5 0 each, due fceptember 1, 1868................................ 14."> 000 00
8,100 shares prefe> r* d stock, $50.............................................................. .............................. 15\ 000 00
Certificates o' in d eb ted n ess (for interest p riof to 1st Mareh 1861)...........................
10'.765 14
Outstanding interest to 1st March, 1867.............................................................................. 111.622 31
Outstanding iutere. t, dne in cq h ....... ..............................................................................
f ,988 80
Real es'a»e boi.d s...................... ................................... ........................................................
28 000 (0
Bills payable.......................................................
............................... .............................
2 <566 66
Profit and loss.............................................................................................................................. 22.120 11
Stockholders............................................................................................... ............................ ?98,950 00
$2,19 ,007 52
T o meet this indebtedness we hare the road (102 miles long) with its sidelings,
eq ipmeut, etc., at a cos. o f............................................................................................ $2,148,130 65
Anu assets..............................................................................................................................
49 876 87
T otal................................................................................................................................... $2,198,007 52

The amount of second mortgage bonds, originally issued, was $300.000— of
which $145,000 were sold— tl e remaining $155,000 were eutsequer tly pledged and
deposited with tru tees, as a security for a c rresponr’i g ameunt of pre erred stock,
say $15 .0 0. Th s preferred stock is then, virtually, a substitute for that amount
o f second mortgage bonds.
A 8 stated above, the company’s first mortgage bonds, amounting to $700,000,
mature on the 1st September. 1869, w hile the second mortgage bonds for $ .00,00J
are past due, having matured on the 1st S ptemter, 1868. Of the coupor s repre­
senting the in ereet m the first, and unpai i up to March 1st 1867, there are still
outstanding about $92,< 00, and of those representing the interest on the second,
and in the same position, there remain about $22,000. These, with our past due
bonds, are now held by comparatively few parties, who have submitted to a delay iu
their settlement, until they roul i be embraced in the gen ral plan of the company
for the readjustment« f their entire drht, to take effec t in September *ext. We are
aluo indebted iu a balance of $28,Ot 0 on certain bonds for real estate in this city,
purcha:-ed in 1853, and duly secured by a mortgage th reon, which is antecedent to
those executed in 1855 aod 1857, for the security respectively of their first and
second mortgage b nde. In the leacjustn ent of our debt, it would, therefore, be
expedient and proper to consider the«e real estate bond* as among our fiist. mort­
gage bond*, and to be absorbed by them, that the special mortgage thereon may be duly
cancelled. W e would, then, propose to you to consol date and renew this whole
indebtedness by the issue of 16 0 bonds of $5 0 each, amounting to $821',000,to be
dated 1st September, 1869, and payable 1st September, 1899, bearing 7 per cunt
interest, pa\abl* semi-annua ly, by coupons attached, to be styled “ fir.-t preferred
b o n d s a n d by anothe r i sue of 64) bonds, of the same date, tern r and amount each,
as the first, for $322,000, to le styled “ second preferred bonds,” both to be se ured
by one general mortgage upon the entire property, rights, franchisee, etc., of the
compan , duly expressing the older, and dtfining the coi didoes of ihese preferences,
and their relations to eech other. The first pieierred bonds should then le offered in
renewal of, or txchange ffr our old.
First mortgflg° bonds i' r ............................................................................................

...........

Outstanding i terest and interest thereon................... .................................................

Real estate b o n d s ....... ............................................................ .....................................................

$700,000

92,000
28,' 00

$820,COO
And th*1 second preferred bonds should be applied to onr old second mortgage
bond* f o r ..........................
.................................................................................................... $300,00°
Outsu n A n g coupons and interest thereon..............................................................................
22,000
$3 2,000

Making onr l ondedeebt..




$1,142,000

18C9]

S93

LAKE SHORE R A ILW A Y COMPANY.

LAKE SHORE RAILW AY COMPANY.

This company, as most of our readers know, was formed by a consolidation of
the Cleveland end Toledo and the Cleveland, Paii esville md Ashtabula Railroads.
The an1ual report for the year ending with 31st December, 1868, sh ws the fol­
lowing :
n he receipts h ve been as fo llo w s :
From Fa-senders ........................$1,712,8^5 27
44 Fre gh ................................ 2,995,280 44
“
> x p -e s s .................................
2 1,336 17
“
M aJs .....................................
48,>95 0)
177 79
“
M iscellaneou s.......................

The disbursements h a ve be**1 rs f Tows:
r o r r nspurt tion and Gen­
eral xpe i r e s ....................$2,909,790 52
...........................
2*8,405 7?
44 Tax s
“ 3 n te re «t'ra id .......................... 381,116 87
44 Jul.v D iv .d e n d ........................
521,940 50
44 Ja uary “
......................
674,943 75

T o ta l.........................................$5,037,994 67
Total .......................................... $4,171.497 41.
Surplus, D ec. 31, 1868..

$263,197 26

T h e details o f interest p aid and o f the en tire surplus h eld b y the t wo com panies,
J an uary 1, 1868, w ere as fo low s:
Interest ( n C. P and A . l e b t ................................. ......................................................... $ ’ 74,986 87
206,430 CO
“
C. a d r.
44 .................................. ......................................................
Julv Dividend, 3% per c .n t ................................................... ........................................
52 ,910 50
J.n\y
44
4%
“
........................ . . .....................................................................
6.4,943 75
T ota l................................................................................................................................ $1,531,3'1
Surplus 18158...................................................................... ................... ...................................
263,197
“
on C. P. aa t a . L< dger, Janu ry 1,1838......... ...............................................
713,823
“
on C. a n d T .
44
44
4< ............................... ............................. 1.026,967

12
26
18
34

T o ta l...................................................................................... ...........................................$2,cO',2S7 78

The gross revenue of 1868 exceeds the aggregate receipts of the Lake Shore
and Cleveland and Toledo Railroad Companies during any previous vear; and the
expenses of 1368 embrace a large outlay upon the Western (Toledo) Division, in the
renewal of bridges, of bridge and culvert mas* nry, of superstructure and ballasting,
and include the construction of nine and cne half mile9 <f new side tracks.
The Sinking Fund Commissioners report in their hands on January 1, 1869, the
following securities:
Cleveland and T o h d o Sinking Fund p ond3 ....................................................................... $369,r00 00
Janction K. R. 1st viortvag 2d D ivision Bond*............................. ........................... .. 4 >.0 0 00
i nited c tates F.ve- wenty Bonds. ....................................................................................llO.L'OO 00
( ash. ................................... ............. ....................................................................................
8 43
T otal.......................................................................................................................................$509,008 43

Statement fhowing the Assets and Liabilities of the Lake Shore Railway and
Cleveland and Toledo Railroad Companies, Janua y 1,1869.

AS8E; F.
Construction............. ............... .............................................................$16,52“,2‘ 9 02
second T a k ..............................................................................................
489,916 45
Ashtabula Bra c h ........... ........................................................................
3)4,005 59
1 q u ip m en t.............................................................................. ................... 2,218 855 Ot
Materials on h in d - •^oad De artment.
Machine Shops ..
Car fcho, s.............
Fuel on hand .
8anbury and c rie R P . Co. S tod c.......................................................
Jam estown and hr nk in it. R. Co S tock ,............................$400,000
“
44
44
B ond s,............................ 312,000
44
44
44
(advances t o )..................
Cleveland a* d Pit sbu-g w R. Co. B i d s , ............................$3,500
Bene ontain Railroad Company ends, ............................ 3,500
T o ., W a ha?h Ja estern k . R. C o. F. . B'ds,
................. 6,000
T oledo City Hridge oudj ................................................................
Sink ng Fund oinmis?ioneiS.................................................................

$19,598,066 10
379, 320 66
85, 126 31
129,,265 25
178 041 40
--------- 571,756 62
500, 000 00
320, CO) 00
279 30) 00
571'536 47
2. 0 0 00
2.537 5)
4. 695 00

1.8 )0

00

*293. 2 0 89
--------- 1,975,159 86
Balances due from A g nts & R. R . Co’ s .................................................
..........
104,197 20
____
1’ ,416 23
Bills Ke.eiveab e .................................. .......................................................
.........
260,9 59 22
U a sh .................................................................................................................

1 ctd




$22,521,535 28

394

[Miiy,

CONDITION OF THE NATIONAL BANKS,

INABILITIES.
Ca Uni c tock ...............................................................................................$15,000,000 00
Sunbnry Bond*, i-sn d bv C. P. & A R R Co., due Ju y, 1874.
010,100 U0
Re it-tered l o d», isf-ueu by C. P, & A . R. R. o , due Jau uuy,
1880
.. ............................................................................................... 1,000,000 00
T h iid M r 'g a ; Bond*, i sued by C. P. & A K . R. Co., due Octo­
ber, 1 8 9 * ................................................................................................... 1,000,000 00
Sinking Fui.d ' iist Mortgage Bonds, is-ued by C. & T. R. R. Co ,
clu .Ju y, 8-5............ ................................. ........... ........................ 2,011,000 CO
3u.orig;ige Bonds o f 1 8 8 6 , issued by C. & T R. R. Co., due A p r i,
18m>...................................................................................................... ..
S64,0C0 00
*P re•<nt ca-h va’ ue ot Securities h .l 1 by Sio^ing b u m Co miss oners,
$500.1 OS 4 .
June i o n w. R F ret Mo* tgace, F risu D iv de d Bonds, issued by
C. & T R R. C .., p i* t d u e .................................................................
12,000 00
(not pr M'i t.( d lot redemption )
JuDCt on It. . b i st Mortgage S cond * ividend Bonds, 'u e D e­
cem ber 1-T2
....................................... ...................................
1’ 6,000)
Iuco i-.e Bonds C. & T. K. R. Co., due Sept , 1870 ..........................
5,0 0 <0
Divid nd •’ r ifi t s ..............................................................................
185 IK)
Unpaid l ivid uus ............................. ................................................
1.002 50
bu plus ac o u a i ..........................................
...................................... 2,00 >.2>7 78
---------------------------- $ 2 2 ,5 :1 ,5 3 5 8 2

CONDITION (IF T H E NA T I O N A L BANK S OF T U B C I T Y OF N E W Y OR K .
T1 e f >l!<»wing is :h* report o f tl e condition of the National B nks in the city
of N( w Y ork at he close of busine-s on the 17th day o f A r i . 18C9.

Number

of banks reporting, tidy-six:
D r.

RESO U R C E S.

Loans and discounts..............................................................................
Overu rat's..... ..........................................................................................
United 8 ntes b o n 's to sec re circulation .................................
United s a'es to so ure d e p o sits....
........................................
Un ted S ” ies mid* and s cu n t e on h a n d ....... .. . ............. .
Other stocks, bonds and morti a es (a- p r sche^u'e).................
Due ironi •itn r Naii l.al Ba ks ( s or s-ch d u e ) ..................
Du<* lioin other bank andbankeis as per schedule)
. ...
Banking no. se, h r real e-iat , ai d luru.ture ana tixtures...
Currem expenses a. d t xes |ai t ................................... .............
Prem ium s................ .
.................................... ............
. ...
Ca^h i em (ioel ding - tamps) (is per schedule) ........................
Exchanges fo c e a iii g h u -e............................................................
Bills of other iintiouai b..nks. .........................................................
Bil fl i 8tat •ba> k s ___
. . . ................................................
F rac ional c-ur • cy (i eluding N ickels)........................................
bpecie, v z : Coi ..................................................................................
Cold Tr ani v n o 'e s ...................................................
Checks on oth r b'k s payable in g Id......................
L 'g a l ender • t e -........................................ .......................................
3 per <ent. cer iii a te1 s:amped as C.caring House certificates..
8 per cent Cjr iticaies........................................................ ................

Cr.

.........................$1)2,<592 110 27
.................. .. .
*40,745 35

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

4 ',050,450 00
1,75 .000 CO

..........................
7 6'7,3( 0 00
.........................
P,57 ',776 13
.........................
10,5:9,574 38
..........................
1.351.477 76
..........................
7,524.108 o9
..................
1,271,971 23
.........................
57 ,906 98
.........................
2 <«;<>,430 40
.......................... 125.0 HI,971 28
..........................
2,196,715 (0
........................
8,392 00
.........................
389,561 55
. $ ’ ,9-2,555 21
. 3,42 .'Oil 0
1.409.8 6 64— 6 812,441 &5
............. . . .
17,2*9,007 00
....................
1 , 0 .000 CO

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

1*'., 1(0.000 CO

$126,107,912 58
L IA B IL I T I E S .

Capital stock paid in ......... ...............................................
Surplus lauds .
.......................................................
D isc unt. ex barge-, interest, and profit and loss —
Circul ting not s u standing........................................
Stan- l auk citcula i m o u ts 'a . ding...............................
Indiv dual a- ••«> i i s ...........................................................
........................................ ................
Cer ifi d i h e ks.
Cashier ch ck on ‘ ctai.d n g . . . .....................................
United State* d« p s-ite . .................................................
Due to Na ional
u s ( .s p r chednle)......................
Due to oth*;r banks and.bunkera (as per schedule)....

73,882,700 00
18,9 <1,094 98
9.i 87,638 37
31,5 >8,337 00
253,998 CO

$137,15 ,991 04
8 ,'<s ,oi m 21
1, 83,058 iii- 223,326,058
8 >,5U8
53.3 >7,8 5
1 :,t,20,802

27
08
11
37

$426,107,912 58
Statement showing the condition o f the lawful mon y reserve o f the National
Bonks in New Y<»?k city at the close o f bti'ine s on the 171 1 day of A . rd, 1H69 :
I i tbili i s fo 1e pr t cted by reserve—

Circul ti')- c ut-tan i g .................... .................................................................................... $34,558,337
lin e >ndi\i> n
dep >eiturs .................................................................... . . . . $137,452,991

Cer tied c*i cks . . ............................................................................

84.2.-8,' 09

C ashio.» thcCKs ou *-tandiiig.........................................................................

1,585.053




18G9]

C O M M E R C IA L

C H R O N IC L E

AND

R E V IE W .

Gros* depos’ t* .......................................................... ........ ..............................
Dae to t e Un'ted States........................................................................... ..
Due to anorat anks ....................................................................................
Due to other b nk* and b a n k e rs ..................................................................

395

223,326 Of8
89,*08
51.8-V7.805
12,(k0,*0i

Gross* am ou n t o f lia b ilitie s ............................................................................ . ............................... $323,952,51©

J crincr —
D oe from N« io al B a r k * ................................................................................ $10,529,574
Due fr m othe ^anks and bankers...................................................................
).?6 .*77
E xch .n g cs for C k a ing H o u s e ....................................................................... 125,000974
--------------------136/52,028

N et amount to b e protected...........................
.................. .................................$187/0),484
Amount leqnire an reserv- (25 p c. o f net amount to be protected)............................. 46 750,121
Proportion o f reserve, whi h must consist i f law fill money (two fifths o f t<e
r e - e i v« ) ..........................

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

$ 1 8 ,7 0 ,0 4 8

Lunds available for reserve—
C o in ....................................................................................................................................
. . . . $1,9*2.555
Lega tender n otes.......................................................................... .........................................
17,*29,C07
G o ld

'I r e a s n r v

n o t e s ...............

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

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

3 ,4 2 0 0 6 0

Three p. r cent temporary lo n certificat s, s amped as C lea in g House certifi^ .t e s ... 15,200,000
Aggregate amount o f lawful n oney on h^nd
.............................................................. 37,8°’ .622
Three ,,tr c nt lein p on ry loan ceriiucates h .d in addition to the a b o v e .................... 16,0 0,000
Aggregate amount o f funds available for reset v e .............................................................. 5 ,801.622
Funds av .i ab’ e for reserve exceeding amount required.................................................. $7,051,501

C O M M E RC IA L CHRONICLE AND R E V I E W
Monetary Aff i-n—R ites o f Loans **nd Discounts— Pond* sold at New York Stock Exchange
Do rd— Pric •o f Gover m eat ie c u r it l s at New Y ork —Course o f Consols and A'* m c-»n
8 ecu itiee »t 'e w Y o r k — nening, Highe t, L ow est a m Closing Price* hi th<* New’ Y ork
Stock E x ch m g - General M<*v m ent o f Coin and Bullion at New Y ork Course o f Gold
at N tw Y o r k -C o u se of F ore gn E x. bange t t New i oik .

In tinu cial ati .iis, A p t’ l nas been characterize! principal’y by a r>d .xution
o f the string ncy in money
A t the opening of the month, the banks s flered
Beiious inconven ence from the wthdrawal of currency by the r country correspen knts in this and adj vning Static, usually occurring in connection with the
A p ril settlements so that from March 27th to A pril 10tb, they 1 st nearly
$ 9 ,(Hin,000 in deposits, and had to contract their ioans $6,5 t(l,0 0.
This
movement was Datura, ly attended with excessive rates o f iuterest, b okers li <ving
had to p 'y upoD st ck loans ra es rang ng from 10 to 50 per ce it, the stringency
being appr vuted through the Coniptrol er o f the Currency not ca ling fir the
periodical ntatement o f ba k , which naturally p evented the banks from expand­
ing to meet the exigency.
Ti e n e caiitile community suffered serious inconvenience from this condi­
tion o ' thiDgs, it being found extreme'y difficult to negotiate the best el iss of
pap-r at 10 to 12 per cent, wh le the low ir grades weie almost unsaleable.
A b o u t the 10th of the month the funds sent temporarily to the country banks
b egin to flow back, and currency his, trom that time, come in IWely from the
Sou b SoiM .w ist and West so that within the last three weeks the bank* have
increased their legal tend rs $5 0 0.000 and their deposits $
00,0th', while the
loans remain-d about stall n ir y ; for the last h .If of the month, therefore, money
has i ten easy at 6 to 7 per c.mt on demand loans, and 8 to 10 per cent on
discoun's
A t the close of the month the currency balance o f the S u b -1’ easury
was reduced to the extremely low figure of $3,500,<100;

tli)3 tact, however>

app eu s to have caused little or no uneasiness; first, because it is unders'ood to
be the purpo e of the Secretary o f the Treasury to work upo i a iower bal nice
than formerly and, next, becau-e although Ike weekly 6ales o f gold wul take a




396

C O M M E R C IA L

C H R O N IC L E

AND

[May,

R E V IE W .

considerable amount o f sold into the Treasury, and the collection o f income ta r
in May will have the same effect, yet other sections stand so largely indebted to
N ew Y o rk that the receipts o f currency from the interior will more than offset
these movements.

A t the same time it is not to b i concealed that the banks are

not now in so strong a position as at this period o f last year.

In specie and

legal tenders combined, they have less by $5,000,000 than a year ago, and
$13,000,000 less than at the same time o f 1867 , while their deposits are
$3,000,000 1<ss than in 1868, $10,000,000 less tnan in 1867, and $25,000,000
less than in 1866. Under these circumstances it would be unsafe to indulge in
Singuine expectations o f ease during the summer months.
The active speculation in United States bonds and the upward tendency in
price* which characterized the month of March, have been continued through
A p ril. A t the close of March the larger portion o f the supply on the market
passed into the hands o( foreign bankers, who were willing to take them in
anticipation o f a European demand, while domestic dealers were willing to sell
them, under the supposition that the stringency in money would depress prices.
The event has proved that the foreign dealers were the more sagacious, ina much
as prices improved in the face o f the monetary pressure and have since advanced,
so that, at the close o f the month, prices ranged from 2| to 3^ per cent above
the opening quotations. F o r the last fifteen days bonds have been steadily
going out to Europe, and no small amount o f the shipments have been supplied
from “ calls” upon dom es!ic dealers, who have had to meet the demand by pur­
chases rather than from stock on hand.
The Stock Market has exhibited a very decided firmness throughout the month.
The large in reuse in the earnings o f last month have encouraged a speculative
fteling among outside speculators, and shares have advanced, in many instances,
in opposition to the efforts of t e cl aues controlling them to keep them d wn.
The more active stocks have been New Y ork Central, R ock Island, N orth­
western, and Kt. Paul. Erie has been very weak, and at the close fell to 28
W ithin the past week Hudson Itiver au<l H i. em have : dvanced 8 £ @ 9 per centi
in sympathy with efforts at Albany to secu'-e autboiiiy to consolidate the roads
with t e N ew Y ork Central. The tot 1s i et o f s t o c t a t both boards, dur.ng
the week amount to 1,768,0 0 shares, which is 145,0 0 shares le.-s than for the

i ame month of last year.
Classes.
ISGS.
Bank s h a r e s ..................................................................
2,53*
1,511.803
B ailroad “ .................. .................................................
Coal
“ ...................................................................
2,901
M ining
“ ....................................................................
33,530
15,975
Im prov’ n t " .............................................
Telegraph “ ...................................................................
74,639
S team sh ip" ...................................................................
170,831
95 109
E xpr’ s s & c " ...................................................................
T otal—A pril.............................................................
S k c e January 1.....................................................

7,e56f2<4

1869.
3,207
1,518,901
2,712
08,709
10,250
68,901
51,457
44,8i4
1,768,361
5,326,349

Increase.
675
6,898

D e c.
6)6

35,259
5.725
5,933
325,374
50,245
144,966
2,529,875

Few bonds have been s o d by investors; nor hive ihe purchases from that
source b.en im portant; the cd y ant country banks appear to have been the
principal sellers, their sales having been m ide perhaps less with a view to
reinvesting in the same class of securities than in contempmtion o f employing
their surplus in lover pri ed inve tineuts— a tendency which has been in process
for the last two years. For the la->t week the market his been strengtheuet by
an understanding more or le s general that tne Secretary o f the Treasury intends
carrying out the sinking fund provision by purchasing bonds for cancellation.




1809]

C O M M E R C IA L
BONDS S O L D

C H R O N IC L E

AT TH E

N. T .

AND

S TO CK

397

R E V IE W ,

EXCHANGE BOARD.

Classes.
1868.
U .S . b o n d s ............................................. .......... $17 109.650
U .S . n o t e s ..........................................................
5,678,600
St’ e & c i t y b ’ d a ...................................................
4,0 6,500
670,200
Com pany b ’ d s ...................................................

1860.
$19,019,650
.........
4,883,700
2 045,975

Inc.
$1,910,000
.........
797,$00
1,375,775

5,778,600

T otal—A p r i l ............................................. $27,641,950 $25,942/25
Since January 1 ................................................
90,994,000 118,969,260

$
27,974,660

$1,695,625
.........

D ec.

$.......

The daily closing prices o f the principal Government securities at the New
Y o r k Stock Exchange Board in the month o f A pril, as represented by the latest
sale officially reported, are shown in the following statem ent:
P R IC E S

O P G O V E R N M E N T S E C U R IT IE S

D ay of
m onth.
1...................................
2 ...................................

AT

NEW YORK.

«—6’ s, 1 8 6 1 . -------------6 V, (5-20 yr8.) Coupon-------------. 5 V, 10-4
Coup. lie". 1662. 1804.
18i5, new 1867. 186S. vrs O’ pn.

5 ...................................
6.......................................................
7 ...................................
8 ..................................
9. ...............................
10..................................
12..................................
1 3 ..................................
14..................................
15..................................
16..................................
17..................................
19..................................
20..................................
21. ..............................
22......................... .. . ....................

115*
4i s *
115*
llo *

11B*
117*

24...................................
26..................................
27.................................
28...........................

117*
113

3) ...............................
F irs t...........................
H ig h e st..................... ....................
L o w e s t ......................
Last.............................

11-X

115
118
116*
118

119'
119
118*
119%
119*
12U
120
120*
120*
119*
120*
120%
121
120*
12 *
121
121*
121
121
121%
121*
121*
122
121*

11 <% 110*
115'
110*
in * no*
114* n o *
316%
115
117
115* 117*
114* 117*
115
117*
115* i n *
H I* n *
115* 118
115* 117*
116
in *
115* 117*
no*
ns*
iio % 118*
116%
11 % i n *
i n * 118*
117% 118*
1 7% 119%
i n * 119*

113*
118*
113*
113%
113*
114
114*
115
115
115
115*
115*
115*
115%
115*
115*
115*
no*
110*
116*

113*
13*
113*
113*
113*
113*
113*
113*
113*
111*
114*
115
115
115*
115
115*
115*
315
115*
115*
115%
no*
no*
no*

118
122
117*
121*

114
117%
18*
117%

112*
no*
112*
116%

112%
no*
113*
HO*

115*
119%
115*
119*

113%
113%
118*

105%
106%
105*
105*
113*

105*
105*
105*
105*
105*
105*
106
106
115
106%
114* 105*
115% 106%
106%
no*
115* 106%
115* 100*
115* 100*
116
107*
n o * 10S*
110* 108*

113*
113*
114
114*
115

113*
no*
113*
no*

105
108*
105
108*

C O U R S E O P CONSOLS A N D A M E R IC A N S E C U R IT IE S A T L O N D O N .

Date.
T h u rs........................................ 1
F riday..........................................2
f-atu'd t y .....................................8
M onday..............
5
T uesday.................................... 6
W ed n esd a y .............................. 7
T h u rsd a y................................ 8
F r id a y ......................................... 9
Saturday................................... 10
M onday ................................... 12
T u e s d a y ....................................13
W ednesday............................... 14
T h u rsd a y ............................... 15
Friday . . . „ .............................. 16
Saturday ................................ 17
'M onday..................................... 19
T u e s d a y ................................... 2
W ed ney.............................
..21

Cons Am. securities :
for U. S. [ll.C. Erie
mon. 5-20s sh’ s. shs.

Date.

Cons Am . securities.
for U.S. Tll.O. Erie
mon. 5-20s sh’ s. sh’ e.

9 2 * 83%
92* 3 3 *
9 2 * 8 3*
93
83*
93
83*
93%' 83%
93* 8 3*
93* 8 3*
9 3 * 83%
93* 83%
93* 8 3 *
93% 8»
93* X S l *

96*
97
97
96*
90*
90*
90*
96%
93*
96%
90*
96%
90*

2 4 * Th' rsd ay... .22
•24% Friday . . . .
2 1 * -aturday . . . .24
21% Monday....... ..26
.27
24* Tuesday —
24* ^ eduesday. .28
24* T h u rsd a y ... ..39
21* Friday......... ..30
24%
24* L ow est.........
21
H igh est.......
24
R ange..........
24
L ast.............

93*
93%
93*
93%
93*
9 3*
9 3*
9 3*

9 3*

81 *
8 %

96%

so*

9<*
98%

Low ) o'-*..
24
23% H i . ' !• s a . .
23 ' R n g l Z t ? - .
Liar,
23

92*
93%

93*
93%

80%

97 *

8 i*
80%
80*
80*
« *
80*
80*
83*

98*
9 8*
98*
98*
98*
98*
98*
98*

23*
22*
22*
22*
22*
21*
21*
20*

92* 80*
9 5% 84
1
3*
93* 80*

96%
98*
2*
98*

2,1*
24*
3*
20*

74*

92%

20*

Si

y -% j

—

i*
9 '*

9*
P !» *

0*
98*

6
20*

The following table will >how the opening, higuest, lowest and closing prices
ot all the railway and miscellaneous >ecuriues quoted at the N ew Y o rk S tock
Exchange during the months o f M ch an I A p r 1, 1869 :
«----------------March------------- % ,-------------- April---------------- ,
Railroad Stocks—
Open. high. L >w.
Clos. Open. D ig i . L ow . C los.
A lton & Terre Haut...................................... 3S
38 3565
yg 36
39 % 36
39%
u
“
“
prel..........................
66 66 65
65%
67% 65%
67
B oston, Hartford & E r ie .... ........... . . . 25%
25% 25%
25%
................................
......




393

C O M M E R C IA L

Chicago & A l 'o n ...............
do
do p r e f ........
Chicago, Burl, & Q u in cy...
do
& Nortbw est’ n . ..
do
do p ref.. . .
do
& R ock Island___
Columb .C hic. & In I. C—
Clov . & Pittsburg.............
d o & T o le d o ..................
do i o f , <in & In d .......
Del., Lack & W estern........
Dubuque & S ioux c i t v .......
do
co
p r e f ....
H a r e m ..................................
Hannibal & St J o s e p h ----do
do p ref----Hudson R iv e r ......................
Illin ois Central ...................
Joliet. & liicago..................
Long Isla> d .........................
Lake Shove .........................
Mar. & C in c in .,ls t .............
•'
2d “ . . .
Michigan C entral................
So
S. & N . Ind..........
Milwaukee & S t. P au l.. ..
,1,.
do p r e f ....
Morris & E s s »x ....................
N ew llaven & Hartford----N ew Jersey .........................
do
CeviL-nl...............
N ew Y ork Central..............
do
& N . Hav n -----N orwich & W orcester.........
Ohio & M ississip p i.............
do
do
p r e f....
Panama .................. ..............
Pitted., Ft. W . & Chica.......
Reading ................. .........
Rom e. VV. & Ogdensb’ g —
S tom u gton ..............................
T oledo, W ab. & W estern .. . .
do
do
d o p i e t .......
W arren.............................—
Miscellaneous —
Am ofieau Coal.......................
C ntral ....................................
Cumberland C o a l..................
Del. « Hud. Canal C oal........
Pennsylvania c o a l ........... ..
spring Mountain Coal.........
W ilk 'b iir e C a l....................
A t antic M ail..........................
Pacific M a il.....................—
Boston W ater C o w e r...........
C a n to n ......... ...........................
Brunswick C itv.....................
M ariposa ...............................
do
p r e f..........................
Q u icksi'ver.............................
Union T ru st................. ........
W est. Union Telegraph.......
Express —
Amer can M . U n ion .............
Adams
...............................
U nited S ta te s..........................
Merchant’ s U n io n ..................
Wells, Fargo & Co..................

C H R O N IC L E

. . . . 166*
...

84*

... 89*
. . . 10U*
.

103

...

8*

...
...

66*
78*

.. . 329
... I l l
... 162
.. i o s *
..

75

.. t l *
..
..

66
78

.. 62X
.. 37
. . 148*

.. 101*
..

9*

.

23%

..

3 i*

.

40*

.

55

.

31*

159
15*1*
174 *
<
c5 #
«2 *
231
4'»
89*
iot *
69
117*
nr>x
101
137
119
115
140*
141
96
47
107*
24
8*
11814
II
71
80*
83

AND

149#
350
174
173
84
o X
93*
94*
131
128
43*
42
87
86*
106*
97
65
65
113* 114
I t s * 116
101
185
135*
117
114*
314
113
138
149
139
139
66
95
47
46
97
116*
43*
43*
8*
8*
n s * 113*
MS*
95*
71*
72
80*
80*
86*
68
200
129
129
12^ 124
112
108# 103* 108#
161* la 5 * 160
161*
120
i o s * 100
104* 109
34
32
3-2#
33
74
75
76
76
335
330
325
330
143* 117
125# 124#
91
91
91
04*
111* i n * i n *
....
83
68
05*
67
66*
79
79
78
77*
87*
87*
87*

63
37
129
217

149*
151
172
81
S9#
141*
44*
87
104 £
62
113*
10?
101
134*
103
110
135*
1 9
66
45
105
23
8*
117*
9 4*
6 4*
76
86*

62#
37
127
414*

28
28
20
20
88#
101*
16
18*
69
61#
9*
9*
13
19*
35
S I*
4 5 * • 19*
145
145
38*
36#
45
04
56*
17*
32

19*
58
54
15
to

[May,

R E V IE W ,

119*

63
37
128
215

40
6 *
33
146*

162
36 *
175
81*
9 *
139
49
94
97
79
116
116

1-9
150
I'O
S3
91*
32S
3 *
84*
96*
133
114*

ro
135
319
114
314 .. 1 2
354
138
1J5 * 139
95
95
<6
46
106#
97
43*
2 0#
8#
8*
132
118*
1 3*
95*
81
61*
8S
80
89*
87*
200
200
324
126
312
IDS
ITS* 1' 9 #
123
10
104
100
34*
•-,4*
76
75
330
3-’5
139
323
91
M l*

161*
161*
175
87
9SX
117*
48*
92#
96*
68
H o*
1.6
150
116
313
156
144
95
46
i a*
21
8*
128
103*
79
86*
89*
200
126
in *
175
121
104
33*
76
325
1 7*
97*

F3
73#
SO

83
6 3#
77*

83
1 3*
79

40
C2#
35
330

40
64*
30
145*

40
62*
30
130
44
- - T»
22
94#
36
62
9*
20
41
21

44

44

43

22
89#
16
59
9*
19
34
20

22
9 *
17*
63
9*
23
44*
44*

22
89*
16
59
9*
18*
34
xo

28
20
89*
36
59
9*
18*
34*
2i
145
33*

39*

43*

39

43*

40*
6 8*
|[6 6 *
35
30

40*
58
56
15*
30*

42
63
68
16
37*

39*
58#
56
15
35*

41*
62
68
16
36

In the gold premium there has been a steady reaction from the low ligures o f
last month, the price having advanced from 1 3 ! f to 1 3 4 f
The principal cause
o f the change h is been the adverse course o f our foreign trade, and tbe anticipition of the rem ttau es to be made at the beginning o f May, against tbe
<onpons of foreign bondholdtrs. Tbe offer of the Se ret.ry o f tbe Treasury to
prepay the coupons o f May and July, with rebate, was but little availed of, the
who'e amount prepaid being within $3,000,H00. On the 29th the Treasury sold,
by publ c tender. $L,OOO.OOJ— the first o f a series o f weekly sales, to bo continued
until further notice. This sale aod the maturing o f $24,t 00,000 of coin interest

to-day, have, however, failed to check the upward tendency of the premium.
Owing io ihe incompleteness of the data, we defer our usual monthly statement
of the specie movement until next week.




18601

C O M M E R C IA L

C H R O N IC L E

AND

S99

R E V IE W ,

T h u rsd a y ....
F r i d a y ................
S atu rda y.............
M onday..............
Tuesday .............
W ednesday.........
Thursday.............
F rid a y ..................
Saturday.............
M o n d a y ...............
T u e s d a y ..............
W ednesday.........
T hursday.............
F rid a y .................
Saturday .........
M onday ............
T u e s d a y ..............
Wedne>-day.........
Thursday.............

. . . 1 131% 131% 131%
131% 132
. . . 3 181% 131% l UK
. . . 5 181 % 131% 1131%
. . . 6 131% 131% H l%
. . . 7 131% 131% 131%
. . . 8 181% 131% 132%
132% 1:33%
....1 0 1*3% 132% 133 Vi'
. 12 133% 133 13 %
. 13 132* 132V 1*2%
....1 4 130% 132,V 133
132% 132% 13'%
. . . Hi 13'% 132% 131%
.. 17 183% 113% 133%
...1 9 133% 133* 133%
. 20 133% 133% 134 U
....21 131% H 4% 134%
• 221184% 134

184%

tn
’S
a>
O.
o

Date.

131 % F r id a y ................
131% •^puirduy.............
181V M onday................
131% T u esd a y ..............
131% W ed esday.........
131% Thursday___—
31% Friday..................
133%
133% April...1S69 . . . .
“
1803.........
13%
“
1807.........
4 '2 *
“
1 80 0 ....
132%
132%
“
1805.........
“
1804....... ..
131,%'
“
1803.........
131%
18 2 . . . .
133% 1 “
13» [
“
1801........
114% 1
1D%| S’ ce.Tan 1,1809...

j Lowest.

Closing.j
i

H igh’ st.

Date.

Lowest.

Openi’g

C O U R S E O F 001,1* A T N E W Y O R K .

JO
To

fcb
.9
co
C
Q

...2 3 138V 133* -3 3*! 133*
...2 ; 139% 133^ I"3% 133%
...2 0 :3*%
13'% 133%
..27,133% 133 V 131
'33%
133% 13 % 133%
...2 9 131V 183* l? V 134*
...3 0 134% 134% 131% ,134%
.. . .

*

131% 131* 134% 1134%
1 8% 1-7* 140% 139%
132% •4> V 135%
128* 125 129%'125%
151% u % 15 % 116%
1«.7 .00 ^ 1SI% 1'3%
157
145% 157% 150%
lf2
HH% 102% 102
100 10)
100
* 1)0
131% 13 >%|136% 131*

The t llowing formula will show the movement oi coin ami Uu.11 >u at the poU
o f N_w Y ork during the month o f April, 18G8 and 1869. respectively :
GENERAL MOVEMENT

O F C O IN

AND

Receipts from California...........................................
Im ports o f co.n and bullion....................................
Coin interest paid......... .............................................
Total rerorted s u p p ly ................................
Exports o f coinaud u llio n .. . , .............................
Customs d u t ie s ..........................................................

B U L L IO N

l.%3.
3, .55,333
777,538
276,100

AT N E W

1869.
1,105,001
4,621,513
4,655,460

VO

X.

Increase. Decrease
...........
2,150,381
3,846,675
...........
4.576,300

$1,509,020 $ i " , 88 ,974 $5,875,954 $ . . . .
$5,487,619 $ 2,OH',661
.............$3,456,953
10,24»,419 10,936,263
686,819

Total withdrawn .................. .............................$15,737,038 $12,966 929 $ ........... $2,770,100
E xcess o f withdrawals............................................. $11,228,618 $2,581,955 $ ............... $ 8 ,6 4 6 063
Specie in banks decreased........................................
2,162,753
1,887,529
...........
275,223
Derived from unreported sources...........................

$9,065,266

$691,426

$ ___ ___

8,570,840

The following exhibits the quotations at N ew Y ork for bankers fill day3 bills
on the principal European markets daily in the month ot March, 18S9 :
C O U R S E O F F O R E IG N E X C H A N G E (6 0 D A Y S ) A T N E W Y O R K .

L ondon.
cen ts fo r
D a y s ........................ . . . 54 p e n ce .
1
........................... 1 07 % @ 08
2
........................... 107%@10S
3
........................... 107%@10S
5 .............................. 108 @ 108 %
6 ........................... 103% @108%
7
.........................
lO lX O lO S X
8 ........................... 108 @ 108 %
9
........................... H 8 @ 10S%
10
.........................
10S%@108
12
................ ........................@ . . . .
13
........................... 107%@1077£
14
.......................... 107 % @ 10 r%
15
........................... 108 @ . . . .
16
........................... 108 @ . ,
11
........................... 108 © . . . .
1 9 ................................ 108 © . . . .
21)................................ 1 0 - % ® .. .
21
........................... 108% @ 108%
22
........................... 1 08 % @ I08%
23
........................... 108%@10S%
24
........................... 108%@10S%
26
........................... 108% @103%
27
........................... 1"9 @ 109%
28
........................... 109 @ 109 %
29
........................... 109% @ 109%
30
........................... 1 0 4 % @ . .. .

Paris.

Amsterdam. Bremen.

ce n tim e s
fo r d o lla r .
522% - 5 2 1 *
525 ©52111
525 © 5 2 1 %
53 i% @ 5 2 2 %
522% @ 521%
522% @ 521%
522% @ 521%
522% @ 521%
523%@5>-2%
623% @ 522%
523% @ 522%
523% @ 522%
522% @ 521%
523% @ 5-’2%
622% @ 521%
522% © 521%
522% @ 521%
521% @ 520
521% @ 520
5 2 l% @ 5 2 0
521% @520
5 2 )% @ 5 1 6 %
620 @ 518 %
520 @ 518%
5 .0 @518%
518% @517%

c e n t s fo r
florin.
4 0 % © ...
89*@ 40
3«% @ 40
39% «.40
40 % @ 4 n %
4il% @ 40%
40% @ 40%
4t)% @ 40%
4U %@40%
4 0 % @ 4 >%
40 @ 4 " %
40 @ 4 0 %
40% @ 4J%
4ll% @ 10%
4n % @ 4 0 %
4 0 % @ 10%
40% @ 4i)%
4 ll% @ 40%
40 % @ 4 0 %
4 0 ij@ 4 ll%
40% @ 10%
49 % @ 4 0 %
4 0 % @ I0 %
... © . .. .
....@ ...
40% @ 4 0 %

A p ril,............. . . . .
1869......................... 107%@109% 525 @516%
April......................

39%@40%

78 @78%

1868........................ 109%@110% 61G%@512% 41 @41% 79%@S0




Hamburg.

Berlin

ce n ts fo r
ce n ts fo r
c e n ts fo r
r ix daler. M . b a n co .
thaler.
78% @ 7S %
3 5 % @ . . . 7 1 % @ 71%
. . . , @ ...................... @ . . . T » » 7 . «
. . . . © .......................@ . . . 70% @ 71
7 7% @ 78
35 % © 3 5 % 70%@7H%
78b@ 73%
8 > H @ 3 5 « 7 »% @ 7(l%
7S % @ 78%
3 % @ 3 ’>% 7'>,%@71
73 @ 7 8 %
35% @ 35% K )% @ 71
78 @ 7 8 %
3 r,ji@ 3 ,‘ Z 7 " % @ 7 I
78 @ 7 8 %
S 5% @ 35% 7a% @ 71
78 @ 7 8 % 85 % @ 8 5 % 7<>%@70%
78 % @ 7 8 %
85% @ 3 5 % 7 0 % @ 7 »%
78% @ 7S%
3 > % ® 5% 7 0 % @ 7 "%
7S,%@71%
35% @ 30% 7 l% @ 7 0%
78 % @ 7 8 %
35% @ 35% 7a% @ 70%
7 8 % @ 7 -% 35% @3S
7O %@70%
7 8% @ 78%
35*«@ 35% 70 % @ 7 0 %
7S% @ 78%
8 5 % @ 5% 7 )% @ 7 i>,
78 @ 7 8 %
8 5 % @ 3 > « 7 % @ 71
78 @ 7 8 %
8 5 % @ 3 '.% 70% @ 71
78 @ 7 8 %
3 5 % @ I5 % 7 % @ 7 l
78 @ 8%
35% @ 3 % 7 % @ 71
73 @ 7 8 %
35% @ 3>% 7U%@71
78% @ 78%
3 5% @ 35% , . . . @ . . .
78% @ 73%
35% @ 3 5 % 71 @ 7 1 %
7n% @ 7 3 %
35 % @ 3 5 % 71 @ 7 1 %
78% @ 73%
3 5 % @ 3 ,% 71 @ 7 1 %

35%®53%

70%@71%

36 ©33% 71%®72

400

JO U R N A L

OF

B A N K IN G , C U R R E N C Y , A N D

F IN A N C E .

\M ay,

JOUR N AL OF B A N K I N G , C U R R E N C Y , A N D F IN A N C E .
Returns o f the N ew Y ork, Philadelphia and B oston Banks.

Below we give the returns of the Banks o f the three cities since Jan. 1 :
N E W Y O R K C IT Y B A N K R E T U R N S.

Date.
Lo^ns.
January 2 ___ $259,000,057
January 9 ----- 258 792,502
January 2 6 ... 262,338,831
January 2 3 ... 264,954,6 9
January c 0 . . 263,171,109
February 6. . 206,641,732
February 13.. 264,380,407
February 2 '. . 263.42'!,06s
February 27.. 261.371,897
March 6 . . . .
262,089,883
March 13........ 261,* 69,695
jyiarch 20..........263,098,302
March 2?........2(53,909,5b9
A pril 3 ......... *61,933,675
A pril 1 0 ........257 4*0,227
April 17
.. 255,184.882
April 24........ 257,458,074

Cireul tion.
Specie.
$20,736,122 $34,379,(09
27,384.780
34,314,756
29,2;* 8,586
34.279.153
28.864.197
31,265,9,6
27,784,923
34,231,156
27.939,404
84,246,436
35,854,331
31,263,451
23, 3-1, 91
34,247,321
20,832,603
34,247 981
19,486,634
34,275,885
17,358, (.71 - 34,690,445
15,213,306
34,141 310
12,073,722
34.777.S14
10,7-7,889
31,816,916
34,609,360
8,791,543
7,811,779
34,436.769
34,060,5^1
8,830, ’60

Deposits.
$180,490,445
187,908,539
195,484,843
197,101,163
196.985,462
196,602,899
192,977,860
187,612 546
185,216,175
182.604,437
Ir 2,392,458
183,501,999
180,113,910
175,325,789
r 1.495,5^0
172,203,494
177,310,080

L. Tend’ s. Agr. c^ear’gs,
$18,896,421 $585,304,799
51,141,128
701,772,051
52.927,083
675,795,611
54,022,. 19
671,234,542
64 747.569^
609,36(',2v§
53,424,133
610 329,470
52,334,052
690,754,499
50,997.197
r.O .991,049
50.S35,U54
529,816,021
49,145,: 69
727,118,131
49,639,625
G>9, 77,666
59,774,874
730,710,008
50,555,103
797,987,488
48,496,359
837^23,692
48,644,712
810,056,455
51,001, -88
772,365,294
53,677,898
752,905,766

P H I L A D E L P H IA B A N K R E T U R N S .

Loans.

Date.
Januaiy 4 .............
January 11.. ........
January 18.............
Janu ary 25............
Feb nai y I ...........
February 8 ............
Febiu r y l o ...........
February 22...........

52,537,015
52,632 813
53,059,716

.......
____
____

April 2 8................ . ..

52,416,146
52,251,311
52,233.000
51,911,5*2
51,328,419
50.597,100
50,499,866
50,770,193
51,478,371
51,204,232

Specie. Lesral Tenders,
$352,483
$13 210,397
544,691
13,498,109
478,462
13,729,493
411 837
14,054,870
3 2,782
14,296,570
317,0 >1
13,785,595
.04,881
13,573,043
2:1,307
13,208,607
256,933
13.010,508
13 258,201
297,887
277,5 i7
13.028,207
225,097
12,765,759
210.644
13,021.315
1-9,0 -3
12,169,221
184,246
12,643,357
167,818
12,941,783
164,261
13,640,063

Deposits.
$38,121,023
38,76S.511
39.625,158
59,5S5,462
29,677,943
40,080 399
38,711,575
37,990,986
37,735, *<05
38,293,956
37,57'',582
36,960,009
36,863,344
35,375,854
36.029,133
37,031,747
37,487,285

Circulation.
$10,5^3,719
10,593,872
10,596.560
10,593,914
10,599,351
10,586,552
10,582,226
10.458.546
10.458.546
10,458,953
10.459,081
10,461,406
10,472,420
30,622,896
10,628,166
10,629,425
10,624,467

D ep osits.
$37,538,767
38.082,891
39,717,193
39.551,747
40,228,462
39,603,8*7
37,759,7.-2
86,323.814
35,689,466
35,525,680
34,081,715
32,641.0 i7
32,93li,430
33,504,099
34,392,377
31,257,071
35,302,203

Circulation.
$ 25,151,345
25,276,667
25,243,S23
25,272.300
25,312,917
25,2*2,057
25.352,122
25,304,051
25,301.537
25.835,317
25,351,654
24,559,312
25,254,167
24,071,716
25,338,782
25,351,854
25,319,751

BOSTON B A N K R E T U R N S.

(C apital Jan. 1, 1866, $41,900,000.)
Loans.
Date.
January 4 .................... $98,423,644
January 11................... 1U0,727,0''7
January 18................... 102,205,209
Janu ry 25................... 102,959,942
F ebrua'y 1................... 103,696,858
February 8................... 104,342,425
February 15................. 103,215 0S4
February 23................. 102,252,632
March 1........................ 101,309,589
101.425,932
M a rch b .. ............. ..
March 15...................... 100.820,303
99,553,319
March 2 2 ..................
99,670,945
March 29......................
96,969,714
April 5........................
99,625,472
/p r i l 12........................
99,115,550
April 19........................
98,971,711
A p r il 26 ............... .




S pecie.
Lejra’ Tenders.
$^,203,401
$12,938,332
3,075,844
12.864,700
2,677,6S8
12,992,327
13,228,874
2,394,790
2,161,284
12,964.225
2,073,908
12,452,795
1,845,924
11,642,856
1,545,418
11,260.790
1,238,936
11,200,14!)
1,297,599
10,985,972
1 217,315
10,869,183
1,330,864
10,490,443
937,769
11,646,222
11,248 S84
862,216
750,160
11,391,579
11,429,995
639,460
617,435
12,361.827

MARINE INSURANCE.
OFFICE

OF

THE

,N MUTUAL INSURANCE COMPANY,
IN C O R P O R T E D MAY 22, 1841,

NO.

52

W A L L

S T R E E T .

Gash Capital paid u p ...........................$500,000 00
Surplus 1st Jan, 1869 - - ’ ............... $531 167 17
Total assets, • - ...........................$1,031,167 17
N e w Y ork January 23,1861
The follow ing statement o f the affairs o f this Company on the 31st o f Decem ber, 1868, is publish­
ed in conform! y with the requi ements « i the 10th Section o f the Act o f its incurpor itio n :
Premiums on U nex ired R 'sk s, Dec. 31,1867....... .................................. ................
..v.........$222,591 £4
Premium* received during the year ending December 31,1868:
On Mari e Ri k s . , ....................................................................................................................$624,680 87
n I and Risks
................................................................................................................ 14,707 97
--------------- 639,388 84
Total P re m iu m s................................................................................................................................. . $861,980 38
Mirk- d off as earned during the year 1S68........................... .................................................................. $636,574 79
Re'ura Premiums >uriDg je a r ................................................................................................. $76,815 63
Ios es incurred during the y e ir (including estimates for all disaete s reported):
<»n Marino R isk s................................................................................................... $314,294 99
On ii la> d R isk s........... .................................. .......................................................
2,118 43
--------------- 316.413 42
Expense , Reinsurances, Taxes, Cemmissior s, Abatements in 1 eu o f Scrip, * c ___ 100,728 39
$493,957 44
The S^EI'S o f the Cumpa y on the 31st D e c., 1868, were s follows .
U .S .5 0 bonds........................................................................................................................ $340,400 00
U. S. 10 40 bonds....................................................................................................................... 1K4,6C0 00
$506,000 00
11,752 66
26,000 00
62,292 62
--------------- $605,044 62
Premium Notes and Bills Receivable not m atured ............................................................................... 154,974 91
frubaoriptio" N otes......................................................................................................................................... 111,166 36
Cash Prem urns in course o f collection and accrued interest on Loans and S to c k s ................. 2’ , 168 25
Sundry salvage, Reinsurance and other c aims due ihe Company, estimated a t ..................... 138.813 04
City Bonds and other S o c k ...............................................................................................
Benris and M c tu a g s ........... .................................................................................................
( ash on d -p'* it, und loans on demand, secured by Bonds and Stocks.......................

To al assets remaining with the Company on ti e 31st Decem be , 1868

$1,031,167 17

No Fire Bisks have been taken by tbe Company during the year, except in conn' ction with Marine
R sks.
In view o f the fore. oing result the B^ard o f Trustees have this day.
rtesolv d, That a PROFIT D IV IDE N D o F FuU K PE R CEN r, in Cash, be paid to the Stockholders on
demand, 6 ee o f Government Tax, in addition to the Interest Dividend ol t-even per Cent, aid in
Ju'v and J muary.
's , hat a »C IP D IVIDRN D O F T E N T Y PHJP C E N T ,fr< eof Cover meat Tax, b i declared on
the net arrnd icem inm s e n title 1 to participa ion for the year 1868, for which e ertifica es may be is ­
sued on and afte- the 1st day o f April next.
By order o f the Boa d,
ISAAC H. W ALK ER , Se<ret*ry.

Moses H Grinnell,
John P. Paullson,
John E. Devlin,
Louis neBebian,
William H. Macy,
Fred. G. Foster
Richardson T. Wilson,
J°hn H. Macy,
Henry Forster Hitch,
Enas Ponvert,
Simon De Yisser,
Wm. R. Preston,
ISAAC H. WALKER, Secretary




TRUSTEES:
Isaac A. Crane,
A. Yznaga del Valle,
John S Wright,
Wm. Von Sachs,
Philip Hater,
Wm. Toel,
Thomas J Slaughter,
Joseph Gaillara, Jr.,
Alex. M. Lawrence,
Isaac Bell.
Elliot C. Cowdin,

Percy R. Pyne,
Samuel M. Fox.
Joseph V. Onatlvia,
Edward S. Jaffray,
William Oothout,
Ernest Caylus,
Frederick Chauncey,
George L. Kingsland,
James F. Penniman,
Frederic Sturges,
Anson G. P. Stokes.
MOSBS H. GRINNELL, President
JOHN P. PAULISON, Vice-Pres de

utwal

2

nsunncc {I ompanij
(P R G A N IZ E D

IN

1842.)

O f f i c e , 5 1 W a l l S t ., c o r . o f W i l l i a m , N e w Y o r k .

1 3 6 9 ,
H a s now A ssets, accumulated fr o m its business, o f over Thirteen
and o n e-h a lf M illion Dollars,
VIZ. .
United States and State o f New York Stock, City, Bank and other
Stocks,
- , •
- $7,587,435
Loans secured by Stocks and otherwise,
2,214.100
Premium Notes and Bills Receivable, Real Estate, Bond and Mortgages
and other securities,
3,453,795
Cash in Bank, 405,545
$13,660,875

()

M A M M and I!J L A »

Insures

I

whole profit tAe Aom^fiany ieveiti tc iAe
a poured, a n c / ii d ivid ed amwatti} tt/ion (Ac ^ilenuumd
fj ielnunaied dating t/ie y-cal / a n d jfoi wAicA cetti^icaioi ale
p M u e d , hoafing intact i/t / lec/eem ed.
&Ae

V

T I F X T J S T E E S
J. D. JONES,
CHARLES DENNIS,
W. H. H. MOORE,
HENRY COIT,
WM. C. PICKERSGILL,
LEWIS CURTIS,
CHARLES H. RUSSELL,
LOWELL HOLBROOK,
R. WARREN WESTON,
ROYAL PHELPS,
CALEB BARSTOW,
A. P. PILLOT,
WILLIAM E. DODGE,

DAVID LANE,
JAMES BRICE,
DANIEL S. MILLER,
WM. STURGIS,
HENRY K. BOGERT,
DENNIS PERKINS,
JOSEPH GALLLARD, Jr.
C. A. IIANI),
JAMES LOW,
B. J. HOWLAND,
BENJ. BABCOCK,
ROB’ T. B. MINTURN.
GORDON W. BURNHAM,

:
FREDERICK CHAUNCEY,
R. L. TAYLOR,
GEORGE S. STEPHENSON,
W ILLIAM H. WEBB,
PAUL SPOFFORD,
SHEPPARD GANDY,
FRANCIS SKIDDY;
CHARLES P. BURDETT,
ROBT. C. FERGUSSON.
SAMUEL G. WARD,
WILLIAM E. BUNKER,
SAMUEL L. MITCHELL,
JAMES G. DE FOREST.

JOHN D. JONES, P resid en t
CHABLES DENNIS, V ice-P resident
W. H. H. MOOBE 2nd Vice-Pres.
J. D. HEWLETT, 3d Vice-Pres.
J. n . CHAPMAN




Secretary