Full text of The Merchants' Magazine and Commercial Review : November 1868, Vol. LIX, No. V

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T H E

MERCHANTS’

MAGAZINE

AND

COMMERCI AL

N O V E M B E R ,

REVIEW.

186

8.

MISAPPREHENSIONS IN REGARD TO CURRENCY.
Many serious mistakes were made by business men and money opera­
tors at the close o f the late war, owing to their confident belief that a
general monetary revulsion must attend the return o f peace. That there
would be a terriffic explosion as a matter of course, attended with an im ­
mense fall in prices they felt to be certain, and therefore hastened to make
large sales of merchandise at buch low rates that they were, in many
cases, glad to repurchase the very articles they had parted with at a consider­
able advance, when they found the expected catastrophe did not take place.
The same feeling of apprehension in regard to a monetary panic has ex­
isted from that time to the present, though it is evidently becoming less
influential.
Much of this fear has arisen from not distinguishing between our present
currency and our former mixed convertable currency. Our present currency
cou&ists wholly of credit. The national Treasury has issued some 400 mil­
lions, and the banks 300 millions more, in all 700 millions, and with
this the domestic trade of the country is carried on. The government
wishes to keep out its full issues and the banks desire to maintain their
circulation, and consequently there is no cause whatever, for any contrac­
tion. Unlike a mixed currency which from its very nature is liable to




1

322

m i s a p p r e h e n s io n

in

reoard

to

currenct.

\November,

continual fluctuation, an irredeemable credit currency, unless the law mak­
ing power interferes to expand or contract it, remains stationary. Under
our present system when money is paid into a bank, it is immediately
loaned out again to its customers. The banks have no fears of being called
upon to redeem their notes in specie, and there is no necessity or wish on
their part to contract their operations, and therefore they put out their
notes as fast as they are paid in. This being the case, why should any
one who understood the matter have had any fears o f a panic at the
close of the war ? Panics can only come from a loss of confidence in the
currency or a forced or sudden withdrawal of that currency, and as confi­
dence was increased by the closing of the war and no sudden withdrawal to
be expected, all fears o f such a disaster were groundless.
So at the present time, all apprehensions of a great scarcity o f money
owing to an expected demand from the W est have proved false. The cur­
rency is now a fixed quantity, the whole is at the disposal of the commer­
cial public. Besides the 700 millions of circulation we have over 600
millions of bank deposits, in all 1,300 millions, against 450 millions before
the war. H ow little chance then is there for any panic or even a general
and severe pressure unless we can make a demand which shall suddenly
draw off a large amount of this currency from the centres o f trade ? N o
such demand is under the circumstances at all probable. There is at
present very limited opportunity for speculation. Breadstuff's and provi­
sions are so abundant that there is little disposition to operate in them
for a rise; so of cotton ; so of manufactures. The day for general specu­
lative movements on the present currency basis has passed by. The
national industry disturbed by the war, is now restored ; production in
every department is equalized; consumption is reduced from its national
dimensions by the high prices of commodities as compared with wages ;
and as a consequence although there must be a large trade to meet the
necessities o f the people, there cannot be so extensive and brisk demand
for merchandize, as there would be in a normal condition of the currency
when all values were measured by the true standard, and each class in the
community received its due share of the general product.
Our depreciated currency has produced a partial paralysis of business
which must continue until the specie standard has been restored. Hence
no expectations can be reasonably entertained of any excessive demand
for money, or any great rise in the rate o f interest. The most marked
features of trade and industry will be dulness and inactivity, until the
currency has been brought to par with gold. When a movement for that
purpose has been fairly inaugerated, and a gradual withdrawal of a given
quantity of circulation each month has been commenced, prices will begin
to descend to their natural level in the commerce of the woild. But




1868!

ASSOCIATION" OF COTTON MANUFACTURERS.

323

no panic need attend this contraction, because, although the currency
will be reduced from time to time, the process will be well understood
beforehand, and the indebtedness o f the country will be contracted in a
corresponding ratio, so that all obligations to pay money will be met as
readily as before; while the prices o f commodities being lessened by the
very process of contraction, less currency will be needed to transact the
same amount of business. When the true point has been attained, which
will be indicated by the currency being at par with specie, the rate o f in ­
terest will be no higher than it has usually been when trade was in a sound
and healthy condition.
There is no danger then o f any essential disturbance in the monetary
affairs o f the country except from political causes. How imminent that
danger may be, each one must determine for himself in view of the
circumstances which affect the condition o f the nation.

NATIONAL ASSOCIATION OP COTTON MANUFACTURERS AND PLANTERS.
At a meeting o f the government o f this association, held in Hew York
on the 6th October, 1868, the following reports were adopted. W e give
them in full, on account of the general interest felt in the subject, and
the importance of the facts presented :
REPORT OF THE STATISTICAL COMMITTEE.

The committee have expected, until within the last four days, to obtain
reports from the cotton mills of the country so nearly full and complete,
that they would serve as a safe basis for a report exhibiting the actual
consumption of cotton, and other interesting and valuable information.
The secretary sent out circulars addressed to some person connected
with every cptton factory of which he h«d knowledge in the United States,
asking from each the few items of information which any practical manu­
facturer or his clerk could easily give.
In behalf o f the association the committee acknowledge, with thanks*
its obligation to the great body o f manufacturers who have supplied the
desired facts, a summary o f which will be herewith presented. To those
who have not yet made the returns we once more appeal, and invite their
examination of the statistics so far gathered, and the deductions from
them, as an indication o f the value o f trade statements to be compiled
from complete returns. W e believe the default has been, in most cases,
not one of refusal, nor even o f reluctance, but rather of postponement or
indifference.
I f any withold through fear that the details given will be subject to




324

a s s o c ia t io n

of

cotton

m anufacturers.

[November,

inspection, we repeat to them the assurance given by the secretary, that
these returns are seen only by him, and are regarded by him as confi­
dential. Even this committee consider only the aggregates and averages
which the secretary prepares from them.
The United States census o f 1860 embraced returns from 1,091 cotton
mills, having 6,235,727 spindles, and using 422,704,975 pounds of cotton,
equal to about 920,000 bales per annum (80 pounds per spindle).
So far the association has received the reports o f 548 mills or corpora­
tions. They have 5,968,000 spindles, produce yarn o f sizes that average
N o . 27|, and use annually 371,688,716 pounds of cotton, equal to 808,000
bales of 460 pounds each (62£ pounds per spindle).
SUMMARY or RETURNS FROM COTTON MILLS RECEIVED TO OCT. 1, 1868.
State.
Mills.
Maine........................ 20
New Ham psbire. . . . 88
Vermont..................
8
Masachusetts.......... 132
Rhode Island............ 95
Connecticut.............. 67
New York................ 38
New Jersey.............. 13
Pennsylvania............ 46
8
Delaware..................
Maryland.................. 10
Ohio..........................
4
1
Indiana....................
Missouri....................
4
Virginia.................... 10
North Carolina........ 10
South Carolina........
6
Georgia.................... 19
Alabama.................
7
Mississippi................
5
Texas.........................
3
Arkansas..................
1
Tennessee................
6
Kentucky..................
2

Spindles.
443,692
718,604
21,146
2,205,007
9 6,102
504,620
410,930
131,704
264,644
46,052
39,358
2 .',834
10,800
18,4 6
36,060
16,234
81,588
65,314
22,196
6,924
6,'00
528
8,864
5,264

No. Yarn.
22i
26i
28J
26i
34f
804
324
*<i
18*
164
124
124
14
104
154
ni
134
124
144
84
104
8
S|
10

Consumption
Consumption, per Spindle.
64.96
28,824,6''8
47,261,439
65 75
61 88
1,097, 25
128,782,576
f 8.40
44.10
41,246,628
26,555,120
62.62
20,403,044
49.66
6,780,000
51.48
25,160,069
95.07
3,478,280
75.53
6,929,000
183.63
3,170,000
138.8!
1,493,061
138.26
2,475,000
184.28
4,010,000
111.18
2,464,000
151.16
4,174,100
132.14
10,226 850
156.57
2,629,916
116.49
1,18 ,0 0
170.42
l,125,0i 0
173.53
158,400
800
1,150,000
121.74
925,000
175.72

RECAPITULATION.
Northern States . . . . 479
69
Southern States . . . .

5,768,229
199,772

27J
124

348,645,660
28,042,766

59.57
140.37

T o t a l................. 618

6,968,001

274

871,688,716

62.23

The total returns received up to October 6 show the following results:

656

6,048,249

27|

376,003,890

62 17

If there are in the country as many cotton mills as were reported in
1860, and no more, there are yet 543 mills to be reported to the associa­

tion.




1868]

ASSOCIATION OF COTTON MANUFACTURERS.

325

The 548 mills already reported have an average o f nearly 11,000
spindles to each mill. The mills not reported must necessarily be of much
smaller average.
It has been the purpose of this committee to take nothing by conjecture
or estimation, and to deal only with ascertained facts, so presenting them
that they shall convey truthful impressions.
In the absence o f the returns o f a portion of the spindles, there is a
temptation to estimate this smaller portion, and then proceed to make
deductions from the premises so obtained. It would, however, be a step
in the wrong direction, leading perhaps to self deception.
The returns from nearly six millions spindles show the annual use o*
about 808,000 bale3 o f cotton in the production o f yarns averaging in size
N o 27f. The States north of the Ohio and Potomac Rivers, and the
States south of those rivers, returns respectively, so far :
H ills.

North.........................479
South ....................... 69

Spindles.

A t . N o.
Tarn.

U sing lbs.
Cotton.

Lbs per
Spindle.

6,768,929
199,771

27£
12<

843,645,950
28,042,766

59.57
140.87

These aggregates and averages bear intrinsic evidence of accuracy in
their consistent relations and proportions. They show a use ot 747,000
bales of cotton north, and 61,000 bales south o f the Ohio and Potonae
Rivers; also the wide difference in the size* or weight o f the yarn pro­
duced in the two sections. Complete returns from both sections would
probably modify both and reduce the difference.
From these data, compared with the census o f 1860, any person so dis­
posed can readily compute, to his own satisfaction, the total number of
spindles, and thereupon the total consumption of cotton.
The committee regret that they have been unable to get the full returns
in time for this report.
The committee present in compact form, some facts afforded by the
complete and accurate statistics o f British cotton trade and manufacture,
annually compiled in that country. They will be found interesting to Am­
erican manufacturers and planters, as throwing some light upon the sup­
ply o f cotton goods and yarns during the last nine years, compared
with the supply during the ten years preceding; also upon the extension
o f markets for those products, and the comparative stocks or surplus exist­
ing in 1860 and now.
British statistics give the requisite information of about one-half the cot­
ton business of the commercial world.

* N o t e .—T o pers-ns not tarailiar with mar ufacturing, it should he explained that the num­
ber givent o express ihe size or weight o f j a m , indicates the number o f skeins or hanks, o f 840
yards each, required to weigh one pound avoirdupois.




326

a s s o c ia t io n

or

cotton

m anufacturers.

[November,

They exhibit the following aggregates for the period named :
Pounds cotton
consum ed.

10 yre, 1850-59.. 8,235,896,000

W aste lb?.

866,896,000

Pounds o f
goods and
yarns produced.

Lbs. o f goods «fc
yarns e xp o ’ d &
cons’ d in G. Bt.

7,370000,000

7,06t,762,620

Showing an accumulation of 305,237,380 pounds in the nine years.
9 years, 1860-68. 7,286,149,000

901,842,0006,334,807,000

6,420,389,000

Showing a deficit in production o f 85,582,000 pounds in the ten years.
Totile..................15,472,045,000
Av per yr. first 10 823,589,600
“ 1 et 9............
804,016,555

1,767,2 8,'00 13,701,807,000
86,589,600 . 737,000,008
loO,149,lll
708,867,444

13,<85,151,620
706,476,262
713,376,565

The waste is stated very nearly as in the English tables that for the
last nine years being much heavier than for the previous ten years, because
of the poorer qualities of cotton necessarily used through the years of
scarcity, 1862-6. The quantities for 1868 are, of course, not assumed to
be actual. Enough, however, is known o f the proportions they bear to
those of former years to demand approximation to those o f 1860, the larg­
est ever known, and they have been so computed.
The remarkable feature here developed is that the consumption in Great
Britain, and the export of cotton goods and yarns have exceeded their pro­
duction in the aggregate of the last nine years to the extent of 85,582,000
pound®. It is obvious that this deficiency occurred in the years 1862-4,
when the supply of cotton was so much reduced, and was made good from
the accumulations of previous years. It does not appear that all the sur­
plus productions, which had piled up before 1861, and which threatened
great disaster to the manufacturing interest at that time, have yet been
distributed to consumers. Here, as in England, attention has been called
frequently during the last two years to the extraordinary shipments o f
British cloths and yarns to India, each half-year increasing upon the pre­
ceding. Explanation is given by the statement that the raw cotton form­
erly used in India has been attracted to Europe by the high prices; tha*
the home manufacture formerly supplying that people with good and
durable cotton cloth has been materially diminished, thus opening a
demand for the English fabric ; and that the enhanced prices for cotton
and other Indian products have more than doubled the wages o f laborers,
and greatly enlarged the ability o f the ryots and other poorer consumers
to buy the British goods. (See note f.)
t N ote .—F rom ihe circular o f George T ra er, Son & Co , o f Manchester, England, dated
ept. 1, Is68, we tak the follow ing com p rative quantities o f plain and colored cotton cl ths
expr rted from Lonuon, Liyerpool, and the Clyde to Madias and Calcutta, to Bombay and to
China.
D u r'n g the whole year 1P66.................................................
825 431.905 yards.
“
“
1867..................................... ........... 1,066,814,613 “
F r m Jan. 1 to Ang. 26, 1868................................................
832,521,700 “
It w ill be <bserved that in these items on’ y o f British trade, the increase o f 1867 was nearly
80 per cent upon he e> port o f 1866, and that f r neatly 8 m o ths ( f 1868 the ate is 17 per cent
above th t » f 1867, while the aggregate for t he 8 m ontns is more than f o r the whole year 1 66.
Th business for ugnst though only to the 26(h day. was larger in amount than the average
pet m o th c f the flist six months o f 1868, the low er prices o f July having induced renewed
activity.




1868]

a s s o c ia t io n

or

cotton

m anufacturers.

32V

Daring the last nine years the population o f the world known to Brit­
ish commerce has increased ; new markets have been opened or extended ;
and if the enormous trade with India is to be considered permanent on
the scale of the last twelve months, it is not easy to see anything but exces­
sive prices that can check the expansion of British cotton trade while
peace continues its protecting and encouraging influence.
In the absence o f the necessary statistics, no satisfactory exhibit of th
cotton trade and manufacture in Continental Europe can be given. There
are, however, some significant facts to show that the continent stands in
relation to the supply of, and demand for, cotton fabrics, in a position
similar to that of Great Britain. After a larger importation o f raw cotton
than during the year preceding, they stand now (Oct. 1) with stocks o f
cotton much less than they held Oct. 1, 180V, and so low indeed tha t
their drain upon Liverpool is seriously felt. This tells o f the increase o f
consumption.
In regard to our own country, the following suggestive comparison is
presented. W h ile regarding what is to follow, with much confidence in
its truth and value, the Committee adhering to its rule, request that it
be taken as hypothetical until verified.
The consumption of cotton North and South, in the United States, as
stated in the New York S lo p in g List, for the eight years 1853 to 1860
inclusive, amounted in its aggregate to 6,339,300 bales, an average of
792,412 bales, say for convenience 800,000 bales per annum.
Cotton statistics were not regularly kept and published during the late
war, and for the few data accessible to us the committee are indebted to
some careful and practical manufacturers who kept private memoranda,
and two of whom, in 1862 and 1863, prepared careful reports upon the
cotton manufacture, for the annual publication o f the Boston Board o f
Trade. A t certain points between the Spring o f 1861 and the close of
the year of 1865, the number o f spindles at work was approximately
ascertained. Starting with these points fixed, the Committee have
obtained also estimates by several manufacturers, all o f whom were run­
ning mills throughout the war, of the proportion that each year from 1861
to 1868 bears to the average of the eight years preceding, in the supply
of cotton goods produced, taking the latter average at 100,
These estimates, independently made, stand th u s:
No. 1.
1861
per cent. 75
“
35
186 4.
“
40
1863.
“
45
1864.
“
60
1865.
1866.
“
75
“
no
1867 .
“
115
1868.

2.
60
S5
35
35
75
80
100
115

3.
62.5
37.5
37.5
37.5
6'1
80
100
110

60
75
90
100

5. Sum of them. Average.
38 2*
66*
75
38*
180 6-6
86 1-6
S3*
185 5-6
37 1-6
33*
200 5-6
40 1-6
75
330
66
8u
890
78
115
5 5
103
120
160
112

“

535

525

515

565




655

4.
60
40
40
10

2.695

539

328

a s s o c ia t io n

of

cotton

m anu facturkrs.

[N ovem ber,

The resulting average is 539 for these eight years, as compared with
800 for the eight years, 1853-60. The consumption of those years was
stated at 800,000 per annum. Owing to the poorer quality o f cotton
obtainable during the war, many more pounds were required to get an
equal production. Allowing five per cent for the extra waste, the pro­
portion above found, 539-800, would require an average consumption of
565,750 bales of 480 pounds each per year, from 1861 to 1868, or, stated
year by year in due proportion, thus:
1861 ................................. bales
1862 ...........................................
1863 . . . . .................................
1864 ...........................................

558,600 I 1865
803,800 |1866
812,200 I 1867
887,400 |1868

.................................. ‘.bales
.............................. ............
............................................
............................................

554,400
655 200
866,200
949,800

Let it be noted here that while the average weight o f American bales
consumed at home in the years 1859 and 1860 was nearly or quite 480
pounds, the weight since 1865 averages rather under 460 pounds. This
difference, if allowed, would raise the above figures of consumption, 1861
to 1868, nearly 4£ per cent. The figures thus derived from data wholly
different from those used in compiling the annual statements, are interest­
ing as nearly confirming the estimates by the latter of the home con­
sumption.
But the more important fact developed by the comparison o f the pro­
duction of the two periods, is this; according to the calculations thus
obtained, the production of cotton goods for the last eight years com­
pared with the production during the eight years preceding, has been as
539 to 800, or only 67| per cent; an actual diminution o f nearly 33 per
cent during a period when there was an increase o f population more than
30 per cent, requiring a corresponding increase of supply. The sum of
these represents the deficiency now, compared with 1860. True, the
foreign export of cotton goods ceased and the Southern markets were cut
off, but the aggregate of both would not make good a moiety of the
deficiency. That h s been in part supplied from the old reserves in families
and with traders, eked out by the economies enforced at first by war prices*
nd since continued under an expectation of a return to the ante-war
scale of prices.
The conclusion seems irresistible, that the old stores of cotton cloth and
other fabrics throughout our country are now exhausted; and this explains
the fact that a demand from consumers, imperative and sustained by
necessity, has already begun.
The position of the cotton trade and manufacture in Great Britain and
Continental Europe, from the operation o f like causes, is the same as
with us, differing however in degree, and modified by the influence of
price and the substitution more or less of other textiles for cotton.




1868]

ASSOCIATION OF COTTON MANUFACTURERS.

329

The depression in the cotton-goods trade, now subjecting many manu­
facturers on both sides of the Atlantic to an average loss, is under the
circumstances anomalous, sustained by an erroneous estimate of the
capacity for supply, and by the expectation o f the trade that the extreme
decline at the close o f 186V may be repeated this season.
The report of the Committee on Raw Material will show an apparent
loss in the stocks of cotton in the world during the year ending Oct. 1,
1868, to the extent of more than 300,000 bales, the consumption of raw
cotton having so far exceeded its supply, yet apparently failing to fill up
the gap in the supply of cotton fabrics, caused by the short production of
the years of the war.
REPORT OF THE COMMITTEE ON R A W MATERIAL.

Cotton is the only raw material properly under the consideration of
this Committee for the purposes o f the Association, and the question of
supply in relation to demand is the chief point o f interest alike to planters
and manufacturers.
Sure of ample supply, the American manufacturer looks at the cotton
of other countries only in its bearing upon price. The manufacturer in
Europe has to consider both the questions, of supply and price, and
cannot overlook the influence that price has upon supply from distant
sources as well as the constant bearing o f supply upon price.
The stocks of cotton in Europe Oct. 1, 186V, amounted to 1,092,000
bales. On the first o f the present month there were only about 600,000
bales, or about 500,000 less than last year. There were at sea, for E ng­
land, 282,000 bales more than last year, and the import since January 1
is 220,000 bales less. On the other hand, an increased import direct to
the continent compensates in part, and then the fact remains that a loss
o f over 300,000 bales, compared with the position a year ago, has been
incurred, showing that the consumption has to that extent exceeded the
supply.
The time has not yet arrived when a useful estimate can be made o f
. the incoming crops of our own or other countries. O f the American crop
our factories, if at full work, will want at least 1,000,000 bales for the
year’s consumption : and as the experience of this season has shown, the
the inconvenience and hazard of allowing the stocks in mills and markets
to run nearly out, (quite out in some mills) it is supposed that the position
for the close of the cotton year (August 31), will be strengthened by the
addition out of this crop o f 100,000 bales or more, to the surplus in mill
and market.
This appropriates 1,100,000 bales of the crop to be retained for home
use, and probably to be retained whatever may be the price.




/

230

r a il r o a d

e a r n in g s .

[November,

In Great Britain the supply for the year ending Dec. 31, stand approx­
imately as follows :
Stock, Dec. 81, 1867.....................................................................................
Import to Sept. 17, Liverpool and London............................................
Import after Sept. 17, 1867, was.........................................600,cfO
Add this year—from India, delayed........................................... 200,000
“ the United States (new).........................
50,000
---------

447,460
2,584,495

Total supply...................................................................................

8,831,955

850,000

Deliveries to Sept 17, Liverpool and London, to trade.............. 2,025,082
For export..................................................................................... 448,741
2,468,823
Estimate for 14 weeks (to Dec. 31) trade and export, at 70,000
per week...................................................................................

980,000

Leaving stock Dec. 31, 1868, about............................................................

3,448,828
383,132

The excess of consumption (in the world) over the supply of 1868,
seems to say that consumption must he reduced, or supply increased,
because it is in the nature o f things quite impossible that the surplus stocks,
now so low, shall ever be much more reduced without stopping part of
the consumption.
The evidences of the extent o f supply for 1869 are not at all clear, and
the extremely unfavorable weather since Sept. 1st has increased the
obscurity about the result o f our own crop. In the midst o f these uncer­
tainties, the Committee defer any calculati n o f the supply, as o f the
demand upon it, until the probabilities shall be better developed.

RAILROAD EARNINGS.
It is satisfactory to note a steady gain in the earnings of our railroads ;
satisfactory not only as an evidence o f the prosperity of the roads but also
as indicating an improvement in the internal commerce of the country.
W hile there is no advance in the rates of transportation, and yet an
increase in the earnings, it is clear that a large amount of freight is pass
ing over the roads; and this we take to be an incontestable evidence
that, despite the current complaints and croaking, there is yet a steady
gain in the general trade o f the country, Within the last three or four
years, there has been in progress a great deal of pioneer development
which has been little noted in the Eastern cities. The pressure o f tax­
ation and high prices have forced population toward the outskirts o f our
newly settled sections, where cheap and fertile lands bestow a better return
for labor than almost any other branch of industry; and the quiet of




1868]

RAILROAD EARNISGS.

231

trade in the cities has also induced an unusual proportion o f emigrants
to seek their fortunes in the same direction. W e have thus had an import­
ant settlement o f population along the routes of the Western roads who
have raised a large amount of heavy freight to be transported. A t the
same time, the Western companies have stretched out their lines into the
sparsely settled regions, carrying population with them. The expansion
in the agricultural sections has naturally increased the traffic o f the roads
and of the lines connecting the West with the seaboard. From the
returns of fourteen roads it appears that there has been an increase in the
gross earnings of the first nine months, from $45,598,356 in 1867 to $49,879,064 in 1868; or nearly ten per cent. The earnings on the same roads
for the month of September were $7,829,797 against $7,189,034 in 1867 ;
which shows a ratio o f increase about the same as that for the previous
eight months. The following are the gross earnings of these companies
for the month of September and the first nine months o f the year, in 1867
and 1868:
Railroads.
A tlantic and Great W e s te r n .. . .
C hicago and A lto n .......................
C hicago and N orth w estern .......
C hicago, R ock Island &. Pacific,
Illin ois Central ..........................
Marietta and Cincinnati..............
M ichigan C e n tra l........................
M ichigan South. & North. In d ..
Milwaukee ann St. t'au l..............
O hio and M is s is s ip p i..................
P ittsburg, F .t W & Chicago ...
St. i.oui , Alton & Ter e Haute.
T oled o, W abash and W estern ..
W estern U n io n ..............................
Total,

/-------September-------,
1867.
1868.
, $483,857
$477,795
408,998
488,155
1,451,284
1,518,483
517,702
544 900
73.8,530
873,500
. 121,217
121,519
. 464,778
456,974
. 487,867
512,523
. 751,739
1,023,520
. 365,372
307,122
, 669,037
761,329
219,160
196.436
3'2.996
450,203
12 ,496
97 338
$7,189,034 $7,829,797

----- Nine Months-------*
1367.
18 8.
$3, SI9,460 $3,463,849
2,776 837
3,266,787
7,991,138
9,717,403
2,77L|,903
3,245,391
4,995,931
5,139,162
860,120
928,803
3,151,480
3,256,327
3,280,210
3,607,079
3,457,960
4,481,355
2,471.833
2,172,213
5,193,001
5,753,350
1,581,996
1,410,327
2.717,347
2,872,266
521,140
561,752
$45,598,356 $49,879,064

It will be observed that the principal increase is upon the roads run.
ning through newly settled country. The incr^^e, for the nine months,
on the Chicago and Northwestern road is $1,726,265, or about 27 per
cen t; this gain, however is largely due to the transportation of mate­
rials for the construction of the Pacific Railroad, and to the flow of pop­
ulation and trade along the route of that road, with which the North­
western connects. On the Milwaukee and St. Paul road there has been
an increase, for the nine months, of about $923,395, or about 27 per
cent.
On this road, there has been an extension o f mileage from 735
miles to 820 miles; which, however, only partially accounts for the
increase of earnings, the company having pre-eminently profited from
the development of new country opened by it. About three-fifths o f
the continued increase on the fourteen roads has occurred on these two
lines, the balance being unevenly distributed among the remaining
twelve companies, nine showing a moderate increase and three a decrease.
In the earnings for September there has been a decrease on five roads,
viz., Atlantic & Great Western, Michigan Central, Ohio & Mississippi?




332

DETENTION OF BREAD STUFFS AT THE WEST.

|November,

St. Louis, Alton & Terre Haute, and Western Union. On the others,
the largest ratio of increase has been on Chicago & Alton, Illinois Central)
Milwaukee & St. Paul, Port W ayne, and Toledo Wabash & Western*
The large amounts o f produce pressed forward to the grain centres,
immediately after the harvest, is the principal cause of the gain in the
earnings during the last month. For the last two or three weeks, how­
ever, there has been a falling off in the receipts o f many roads, owing to
the wet weather and also to the fact that the fallen price of grain has
checked the transportation of produce; for this reason, it is quite likely
that the exhibit o f earnings for October may not be so favorable as that
for September. There is, however an unusually large stock o f grain in
the hands of the farmers, the forwarding of which, and especially of the
unprecedented corn crop, must give active employment to the roads for
the next few months and keep the earnings on a liberal scale.

DETENTION OF BREADSTUFFS AT THE WEST.
It is somewhat anomalous that, with unusually abundant crops o f
cereals, the arrivals o f grain at the seaboard since the harvest have
been upon a comparatively limited scale, while oi the large exportable
surplus very little has yet been shipped. Stocks o f grain at present are
accumulating at the lake ports, the dealers professing a purpose to carry
their load until the East is prepared to take it at much higher prices.
On the 20th inst. there was 1,518,400 bushels o f wheat in store at
Chicago, against 754,100 bushels at the same period o f 1867, and at
Milwaukee 618,000 bushels this year, against 455,000 bushels at the
corresponding date o f last y e a r; while, on the 10th inst., there was
afloat on the canals only 3,154,000 bushels o f all grains against 4,852,000
bushels in 1867; which clearly shows the disposition o f the Western
dealers to hold back supplies.
This detention o f produce is, perhaps, no more than might have been
expected as the natural result o f a decline o f 35 cents in wheat, and
a material fall in other grains since September 1st, following close
upon a still larger decline during the summer. Much o f the grain
held in lake storehouses cost the holders considerably above the now
current values; and it is natural, even if not prudent, that the owners
should try to avert losses b y holding for higher prices. It may at least
be urged in favor o f the Western dealers that they are but following
the rule frequently adopted by factors circumstanced as they now are.
W hether they are acting wisely is questionable; especially considering
that the English markets, according to the latest accounts, are likely




1868]

338

DETENTION OP BREABSTTTFFS AT THE WEST.

to be better supplied than has been expected. It is less our purpose,
however, to discuss the prudence of the present hoarding o f grain
than to survey the common policy o f the W est in holding back its
grain from shipment during the last few weeks of navigation. The
present action of the dealers is but an illustration o f what almost inva­
riably occurs at this period o f the year. In October or November,
there is generally a difference o f views between Eastern buyers and
Western sellers, which results in a curtailment o f shipments and in a
limitation o f supplies at the seaboard during the winter, o f no benefit to
the trade o f either section. F or the purpose o f indicating and illustrating
what proportion o f the supplies sent East comes to hand during the
period o f navigation, the suspension of navigation, and from the opening
o f navigation to the marketing o f the new crop, we have compiled
the following statement, showing the arrivals o f flour, wheat, corn and
oats at New York within each o f these respective periods.
R E C E IP T S

OF

FLO O R , W H E A T , CORN

F lou r.....................................................tibls.
W h e .t...........................................
bush.
T o r n ..............................
bush.
O a t s ................................................... bush.

AND

Sept. 1 to
D ec 1 . ’ 66.
974.000
2,678,000
7,772,000
2,583,000

Total bush. inc!. flour.................................17,903,000

OATS AT N E W

TORE,

1866-67.

Dee. 1 ’ 66.
to M a v l, ’ 67.
747 COD
2,118,000.
2,404,000
1,837,000

May 1, ’ 67, Dec. 1. ’ 66. to
to 8 -p . 1 ,’ tit. Sept. 1 ,’ 67.
037,000
1,884,009
1,312.000
S ,1 !0 .«0
8,331,000
10,735,000
1,724,000
3,561,000

10,124,000

14,582,000

24,706,000

It thus appears that o f the total arrivals o f 42,614,000 bushels o f
wheat, corn and oats within the crop year 1866-7, 17,908,000 bushels
were received between September 1 and December 1, and that the bal­
ance o f 24,706,000 bushels came between the close o f navigation and the
termination of the crop year, a period o f nine months, 10,124,000
bushels arriving during the six months suspension o f navigation, and
14,582,000 bushels during the three months subsequent to the opening
o f navigation. A bout 42 per cent o f the supply sent here is thus seen
to have been forwarded within the first three months o f the crop y e a r;
24 per cent within the succeeding six months, and 34 per cent within
the three last months. There is a manifest inequality in this move­
ment. It is not easy to explain satisfactorily why such a heavy proportion
should be kept back until the closing quarter ; nor can it well be
shown that the arrival o f only 10,124,000 bushels, during the six months
from December to May, is conducive to an even movement o f the trade
or to regularity o f prices. It is easy to explain why, if 58 per cent c f
the Eastern supply is held back at the close o f navigation, such a small
propoition o f that reserve should arrive here while the canals are
frozen ; for the limited capacity of the roads, their blockade by snow,
and their high rates o f freight as compared with water carriage, naturally
cause grain to be held back until the opening o f navigation. But the




334

DETENTION OF BREADSTUFF8 AT THE WEST.

[November,

question arises, is there any real advantage to the W estern dealers and
to the W est at large, in so small a portion o f the crop being forwarded
East before the closing o f the canals ? The dealers suppose that by
holding back in October and November they can induce a scarcity at
the East which will enable them, for the time being, to get higher prices.
They succeed in producing the comparative scarcity, and not unfrequently a temporary advance in prices; but, so long, as it is known that
the supplies are stored in the W est, the New York merchants operate
cautiously, satisfied to work upon l.ght stocks, and refuse-to pay a price
which they think inconsistent with the supply to come ultimately upon
the market. The result is that the Chicago merchant fails to get the
price he demands and finds, when it is too late, that he has to carry his
stock for some months.
This detention o f supplies, o f course, tends to keep the Eastern
markets lightly fed with grain during the ssupension o f navigation j
which, at first sight, would seem to be in favor o f the W est getting
higher prices upon its shipments during that period. But against this
apparent advantage must be set off the high freights paid during that
period. The roads hold the shippers at their mercy, having no compe­
tition from the canals to keep down freights; and the result is that
high charges have to be paid for transportation, which react upon the
price o f grain at the W est. After February the New York dealers
begin to anticipate the large supply to come upon the market on the open­
ing o f the canals, and regulate their bids accordingly, the anticipation o f
the near arrival of supplies being almost as influential on prices as the
actual receipts. W hen navigation opens, a large amount o f grain is
o f necessity crowded upon our markets. The W estern banks are no
longer willing to help the dealers in carrying their stocks, for the mer­
cantile interest then comes in with large claims for accommodation ; so
that there is no course for the holders o f grain but to Tealise precipi­
tately upon their hoards; and, considering the large amouut o f grain to
be sold within the three months before the marketing o f the new
crop, it is clear that then the Western seller is very much at the mercy
o f the Eastern buyer.
It must be further taken into account that the carrying o f such large
stocks involves heavy interest payments, heavy charges for storage and
insurance, and a certain amount o f risk o f deterioration or damage to
the grain; which act as another drawback against any extra price that
may be supposed to be obtainable b y holding back supplies. A t New
5fork, the grain could be carried through the winter months at little over
one-half the discount charges paid at Chicago, money being then abund­
ant here, and good produce paper negotiable at 6 per cent; or it would be




1868]

835

SEABOARD AND WESTERN TRANSPORTATION.

ready for shipment to foreign ports whenever prices might warrant such
a movement. A s evidence o f the little benefit resulting to the W est
from holding the grain back during the season o f 18CC-7, we give below
the actual price o f Chicago Spring at New York the last Friday o f each
month during the autumn, winter and spring o f that season:
Sep. 28, ’ 66.
Chicago Spring............................... $1 00@2 60
Feb. 23 . '6T.
Chicago Spring............................... $190@ 2 35

Oct. 26, ’ 66.
$2 00©2 55
Mar. 29,’ 67.
$2 10©3 65

N ov. SO,’66. Dec. 27.’ 66.
$1 90@2 35 $1 90@2 45
Apr. 26,’67. M y 31,'67.
$2 35@2 90 $2 2 .@ 2 50

Jan. 25,’ 61.
$1 9!)©2 40
June 28.’ 67
*1 75@2 35

These figures give little encouragement to the present accumulation o f
stocks in the W est. Beside, it clearly is not conducive to the interests
o f Western industry and trade that the means o f the banks should be un­
necessarily absorbed in the carrying o f immense stocks o f grain. W ere
a larger proportion of the Eastern supplies held through the winter in
New York, the Western money markets would be easier, a lower rate
o f interest would prevail there, and the banks, instead o f carrying a dead
weight for several months, would be the better enabled to foster the
thousand profitable enterprises in that section which so much need and
so much deserve support; while our own banks would find more legiti­
mate employment for their ample balances, than in lending them to
W all street operators to be used in demoralizing stock speculations.

TRANSPORTATION BETWEEN THE SEABOARD AND THE AVEST.
The extension o f the means of transportation between the W est and
the A tlantic seaboard is the supreme commercial necessity o f the times.
Beyond the Alleghanies lies the finest trace o f agricultural and mineral
country on the face o f the globe, occupied b y a people unsurpassed for
practical intelligence, industry and enterprise. E very year, the popula­
tion of this section is fast increasing its numbers and enlarging its
products; and this rapid expansion o f Western industry demands a cor­
responding increase in the facilities for commercial intercourse with other
sections and other countries. A t present, New York is the grand depot
for marketing the surplus products o f the W e s t; and thus far our rail­
roads and canals have proved an adequate means o f outlet for them. It
is not to be imagined, however, that a region with such immense resources
is to be always, nor even much longer, dependent upon one market and
one port. N or is it desirable, for the interests o f this city, that such
dependence should be unduly prolonged, The prosperity o f the W est
is conducive to the welfare o f the whole country; and what benefits the
country at larsre is advantageous especially to this pert.
But, be this as it may, New York can control no trade which cannot




336

SEABOARD AND WESTERN TRANSPORTATION.

[ November,

be done through its agency more advantageously than through others;
and i f new routes should be opened, establishing cheaper and quieter
communication between the Atlantic and the great grain section, we
must cheapen and quicken ours, or it must inevitably result that a por­
tion o f the heavy freight trade o f the Western interior would take the
new direction. A shorter and cheaper connection between the European
markets and the W est would, indeed, create its own traffic, in addition
to that already existing. W hatever reduction is effected in the cost of
transporting grain is so much gained in our ability to compete with
European producers; and cheaper transportation would therefore insure
an extended demand for W estern food products abroad. W estern
expansion is now crippled by the cost o f carrying commodities immense
distances at high prices. Rem ove this obstacle, and we should witness
an extension o f agriculture unprecedented in that rapidly developing
section. The growth o f the W est constantly keeps ahead o f the pro­
gress of the railroads; and the result is that the transportation compa­
nies control absolutely the rates o f freight and, by their high charges and
frequently inadequate accommodation, act as a restriction upon the
sources whence their traffic is derived. Each railroad having as much
freight as it can carry, there is no motive for competition between the
several companies, but rather for collusion to secure the highest possible
rates; which is clearly a condition o f things unfavorable to the com­
mercial interests of the country at large.
Upon the foregoing considerations, we welcome any feasible effort to
introduce competition in transportation between the East and West, and
especially when the new route promises to effect a saving in time and
distance. The convention held last week at Norfolk, Va., made a grati­
fying show of strength in favor o f a railroad enterprise by which it is
proposed to connect that port with the valley o f the Ohio and the vast
and fertile lands o f the Mississippi valley. Judging from the earnestness
shown at that gathering o f Western capitalists, it may be regarded as a
settled matter that a connection will soon be established between the
Virginia and Tennessee Railroad and Louisville. The supplying of
such a link would connect the ports o f Virginia with the most thriving
sections o f the W est, Northwest and Southwest by a shorter route than
now connects them with New York. The distance, b y the proposed
route, from Louisville to Norfolk would be 714 miles, or 351 miles less
than from Louisville to New Y o r k ; from Cairo the distance would be
400 miles less than to New York, and from Cincinnati 237 miles less.
There is here a very broad basis for a material saving on the transporta­
tion o f the heavy freights o f the West, the distance o f these sections
from the Atlantic being reduced about one-third. The route, it is also




1868]

SEABOARD AND WESTERN

TRANSPORTATION.

33V

claimed, would have very important advantages over the existing routes
in respect to grades, the maximum grade being 68 feet to the mile,
while that o f the Pennsylvania Central is 100 feet and that o f the Balti­
more and Ohio 116 feet. Running through a mild climate, the road
would be subject to none o f the interruptions arising from ice and snow
which embarrass the New York and Pennsylvania roads. The W est,
and Cincinnati especially, needs facilities that will enable it to forward
its produce as freely in the winter, when navigation is suspended, as at any
other tim e; while it equally requires the means o f sending to market its
crops in the fall without glutting both the roads and the canals; and that
desideratum would be met by supplying the lacking link between the
Virginia roads and those o f Kentucky. The road would be available
for the transportation o f Western produce destined to New York at a
season when the existing roads are overcrowded or when the canals are
frozen, which would be o f great importance to the grain trade o f this
city.
It is contemplated to establish a line o f steamships to run between
Norfolk and Liverpool, designed to carry the heavy class o f freight
brought over the new route, and supplying the facilities for through
shipments from the W est to Great Britain. Here, perhaps, is the weak
point in this scheme for making Norfolk a great port for Western prod­
ucts. P or although it is easily conceivable how the vessels may get
ample outward cargoes, yet it is b y no means apparent where the
return cargoes are to come from, seeing that the Atlantic imports are
naturally attracted to the New York market. The projectors evidently
aim to divert emigration to that point as a basis o f return traffic, and
propose, as an inducement for emigrants to come b y their vessels, to
give them free transportation from Norfolk to their destination. The
representatives o f the connecting railroads promised in the convention
to grant this advantage to settlers coming in the Norfolk steamers.
They cannot, however, make such a gratuity without some considerable
cost. If the sacrifice should induce emigrants to sail for Norfolk in
preference to New York, there would be some compensation to the
road s; for the profits o f the steamers upon the emigrant trade would
place them in the better position for carrying freight cheap; but if it
should fail to attract emigrants, the vessels would have to charge propor­
tionately higher rates o f freight, which would make against the economy
o f the route, to W estern forwarders. The great earnestness shown by
the W est in forwarding this enterprise, as a new outlet for its products
and a source o f competition with the Eastern routes, warrants the expect­
ation that much will be done by the merchants o f that section to estab Lh
trade on the route; and, with such aid at the beginning, its natural




2

838

FRANCE AND SPAIN.

[November,

advantages may be relied upon to secure it ultimately an important
position as a line o f communication between the grain States and Liver­
pool.
Contemporaneously with these efforts, steps are being taken for
connecting the Chesapeake Bay with the W est b y an unbroken line o f
navigation. The shortest natural water line between the Atlantic and
the W est undoubtedly lies between the mouth of the James River and
the commence ment o f the Ohio. This r-'ute it is proposed to open by
completing the unfinished portion o f the Virginia canal, over the 80
miles between its present terminus at Buchanan and the Greenbrier
R iver : which would connect steam navigation at Richmond with steam
navigation in the Kanawha, by a canal 277 miles in length. In this
way a connection would be opened between the Chesapeake Bay and
the river system o f the W est, with its immense flat-boat traffic, a system
which admits o f unlimited ramification by the building o f canals con­
necting the great water lines.
These movements for opening, at the same time, railroad and water
communication between the W est and the Chesapeake Bay indicate a
public sense o f the pressing necessity for ampler transportation accom­
modation for the rapidly expanding interests o f the interior; and,
considering the comparatively light outlay o f capital required for the
completion o f the enterprises, there can be no doubt o f their ultimate
realization, and as little question that a new era o f commercial dev­
elopment will be the result.

FRANCE AND SPAIN.
Now that the Spanish revolution is an accomplished fact, and now that
it is hardly less certain that Napoleon III. will in no direct way interfere
with its progress than it is that the Pope can do no more for her most
Catholic majesty than offer her the Quirinal for a palace and R om e for a
place of sojourn, it begins to be hoped that the mighty change which has
occured in Spain may have some good effect upon the uncertain and
therefore perilous condition of affairs in France. This hope is by no
means unreasonable. In the first place, the downfall of the government of
Queen Isabella II. must weaken the clerical party in France, and the neces­
sity of keeping well with the clerical party in France has been one o f the
Emperor’s most perplexing political obligations. Under the inspiration of
a fanatical nun known as Sister Patrocinio and of a scheming priest,
Father Clariet, advanced by the Queen to the dignity of Archbishop of Tar.
ragona, the government o f Queen Isabella II, had probably become the
model clerical government of Europe.




18(38]

FRANCK AND SPAIN.

339

The priesthood in Spain were all-powerful over matters relating to the
social life and training o f the Spanish people. Their order had gradually
recovered all and more than all the power which it had lost by the liberal
decrees which several years ago broke uo the monastic institutions. W hat
Y on Beust has forbidden Austria any more to be, what Dupanloup
Bishop o f Orleans, and his coadjutors would gladly see France become,
that Spain was. It will be difficult now even for the ingenious Bishop of
Orleans himself to disprove the evidence offered by the Spanish revolution
of the impotence o f a strictl y clerical support to sustain a temporal dynasty.
Faith in the church undoubtedly is still a power in France, and particularly
in rural France. But it is much less o f a power in France than it was
and is in Spain. If the Bourbons, nevertheless, found it a broken reed
at Madrid, why should the Bonapartes be asked to lean very heavily upon
it at Paris?
The Emperor Napoleon III., then, may find himself to a certain extent
set free by the triumph of Prim and Serrano from the bondage of that
organization in France which has done more than any other single force,
so far, to foil the attempts which he himself has repeatedly made to expand
and liberalize the imperial system. The French clergy themselves, if they
be not utterly blind to the condition of the world they live in, must recog­
nize the fact that the success o f the church in Spain has been its ruin. The
Spanish church finds itself to-day imperilled by the downfall of the mon
archy which it had made too much and too openly its own tool. The
French church will hardly now be kept with a very firm hand upon the
same fatal course by the experienced ecclesiastics who control its helm.
Again, the Spanish revolution, so loug as it prospers as it has up to
this time prospered without damaging social order in Spain, or endanger­
ing the foreign relations of the country, must relieve the French govern­
ment to a certain extent from its complications in that most comp.ioated
and perilous question of Fiance and Rome. The overthrow of the Spanish
Bourbons deals a death blow to the intrigues of the Neapolitan Bourbons
with the Roman court, while at the same time it throws the Roman court
more helplessly than ever into the arms o f the French government. Were
the project mentioned in some quarters as under consideration at Florence
and Paris to be carried out, and the Spanish throne to be offered to and
accepted by the Prince Amadeus, ofSavoy, the second son o f King Victor
Emmanuel, it would become absolutely necessary for the Papal court to
make its peace with Italy, and to relax its tormenting hold upon France.
And finally, without wandering too far into speculations upon the possible
bearing of a series of events which are still working out, it is clear that
the emancipation of Spain, and the revival of her energies under a capable
and feasible government must strengthen the Emperor Napoleon against




340

FRANCE AND SPAIN,

[November,

the extreme war party in France which for two years past has been urging
him madly on, in season and out of season, to a war with Prussia, for the
purpose of preventing the consolidation of Germany.
The tact that Italy is to-day a power o f importance, and that the force
of Italy might be turned against France in certain contingencies, has
already had its influence in fortifying the Emperor’s policy o f resistance
against the impetuosity o f the clamorers for the “ natural boundaries of
France.”
The rise beyond the Pyrenees o f a new Spain not incapable
of becoming what the Spain of old so often was, a decisive make weight in
the balance of European power, will reinforce this tempering and modi­
fying influence o f the Italian resurrection upon the pride and the passions
of the French people. O f course nothing of all this good could be looked
for, were the Spanish revolution to degenerate, as so many friends of Spain
have feared, and as all the foes of Spain have hoped it might, into a
chaotic and anarchical conflict between the theories o f philosophers and
fanatics on the one hand, and the ambition of unscrupulous adventurers
on the other.
The disposition manifested at the outset by a few members of the Mad•rid Junta to dabble in political experiments, after the manner of the French
revolutionists of 1848, seems however, to have been effectually arrested.
M . de Girardin, in La Liberte, concedes the establishment o f a Spanish
republic to be now impracticable, and congratulates Europe that the future
of Spain just now rests upon one man, Marshal Serrano, Duke of La Torre,
-who is at once sensible and honest. W e may not unreasonably anticipate,
therefore, at no distant day, the formal settlement o f the Spanish crown,
‘under a well-ordered constitutional system, upon some prince of alien blood,
but of mature years, and of respectable political capacity. The advent of
such a prince as the ex-king Ferdinand of Portugal, for instance, to the
Spanish throne, would be hailed by Europe as the presage of a real restora­
tion of Spain to the place which of right is hers in the family of nations.
How greatly France now needs what we may call the moral and politi­
cal tonic of such an issue of the Spanish revolution, may be measured by
the fact that capital in France is flowing as freely as water into the coffers
of the French government. It is but the other day that, in response to a
call for a new loan, the French Minister of Finance received, in twentyfour hours time, offers to the amount of thirty-four times the sum required.
A nd the short loans of the French government, corresponding to what are
known in English finance as “ Exchequer Bills,” have just been renewed
at the unprecedented rate of one half per cent a year.
These facts, usually cited in proof of the popularity of the imperial govern­
ment, really show, as the London Economist wisely suggests, only its actual
ill-effect upon French interests and French public opinion. The credit of




1868]

THE PROSPECTIVE PREMIUM ON THE GOLD.

241

the French government is independent upon the credit of any particular
dynasty in France. It reposes upon the intelligent confidence of French­
men in the unbounded resources of France, and upon the moral certainty
that “ whatever king may reign ” the Rentes will surely be paid. But
France within a few years past has made enormous progress in the devel­
opment of her industry and her resources. She has prospered exceedingly,
and accumulated a vast store of readily available capital. W ere the policy
o f the French government clearly known and satisfactory, these accumu­
lations would naturally find their way into the vortex of industry and trade,
and the government, though it might still borrow at an advantage as com­
pared with other governments would still be obliged to pay something
more than nominal rates o f interest. Now, on the contrary, the anxiety
of men as to a future of war or of peace chills private enterprise, and capital
locks itself up for safety, not for profit, in the public funds.
A practical and prosperous government in Spain by its influence in
deciding the positive triumph o f a peace policy in France, may therefore,
perhaps, accomplish for France, Europe and the world happy results not
less important than those whih it will achieve for Spain herself.

TEE PROSPECTIVE PREMIUM ON GOLD.
The decline in the price o f gold from 150 in July to 137^ within the
present week, however influenced by speculation, has been the result of
well defined movements. The rise in the premium, three months ago,
was mainly due to what then appeared to be a reasonable prospect of
a serious adverse balance in our foreign trade. During the first six months
of the year, we had exported from New York alone $60,000,000 of
specie, an unprecedented amount for that period, and yet our imports
were increasing, while our exports were falling below the value of those
last year, and we had to provide for the payment of $7,200,000 on account
of the purchase of Alaska. Few or none considered it safe to rely upon
the continuance of the exportation of bonds upon any considerable scale,
and it was therefore deemed inevitable that we must make further he vy
drafts upon our already reduced stock of gold, in order to balance our
trade indebtedness to Europe.
It was principally upon these considerations that gold advanced to 150.
Relief, however, came from the quarter least expected. It proved that^
notwithstanding the immense amount o f United States bonds held in
Europe, the market there was open to take still more at the easier prices
induced by the rise in gold ; and contrary to all expectation, Government
securities were sent out steadily, during July and August, to an aggregate




242

THE PROSPECTIVE PREMIUM ON THE GOLD.

\No\ember,

amount variously estimated from §25,000,000 to §40,000,000, besides
several million shares o f the Erie Railway Company. This very large
contribution toward the adjustment of our foreign trade account, virtu­
ally averting a heavy drain of specie, completely changed the condition of
the gold market and produced a steady decline in the premium, as the
magnitude of the movement came to be generally appreciated.
The downward tendency has also been accelerated by the result o f the
harvest affording promise o f an abundant surplus of food products for
export. It is difficult, however, to estimate with even approximate accu­
racy the course o f the foreign trade movement for the next few weeks,
upon which the price of gold must be in a large degree dependent.
During the months o f July, August and September, the imports at this
port have varied but little from those of the same period of last year, the
total being §72,800,000, against §65,400,000 in 1867. The produce
exports at New York, for the same period, have been §39,800,000, against
§42,000,000 last year. Perhaps it may be safely assumedthat, for the
next three months, the imports will not vary materially from those o f the
same quarter o f 1867. There would seem to be good reason, however,
for anticipating that the course of the exports will be more favorable than
last year. Our exports of field products may certainly be relied upon to
yield us a larger return ; the only question being, whetbei the improve­
ment will come at once, or be delayed through a temporary holding back
for better prices. Thus far, our shipments of breadstufl's have not been so
large as might have been expected from the abundance of the crops. At
the West, grain is held above the views of Eastern shippers; and it is
very possible that the Western dealers may keep back their produce
until the close o f navigation, in which event the exportation of our
surplus of breadstuffs would be in a considerable measure delayed until
the Spring of next year. The arrivals of grain at New York from
August 1 to October 13, compared with those o f last year, have been
as follows:
Aug. 1 to
Aug. 1 to'
Oct. 18, 1868. A ug. 13, 1867.
Flour, b b ls................................................................ _ ...........................
. 7 1,630
903,545
Corn meal, b b ls........................................................... ..................................
25 245
17,045
Wheat, bush...............................................
2,716,355
3,440,900
Corn, bush............................................................................................................7,091,870
6,085,445
Rye, bush..................................................
105,995
263,745
Barley, &c., bush..................................
616,955
708,230
Oats, bush......................................................................................................... 3,797,320
2,665,035

The stock o f gram in New Y ork warehouses on the 12th instant was as
follows, compared with the same period of last year :
Wheat, bush.
Corn, bush.
Oats, but-h
Barley, bush.
Malt, bush..
Peas, b u s h ...
Rye, b u sh ...
T o t a l....




Oct 12. 1868.
. . . 483,806
...2,508,744
...1,393 936
22,026
...
59,051
...
32,890
...
31,825
$4,532,878

Oct. 14,1867.
167,608
967,664
89),897
32,793
57,977
12,245
7,300
$2,136,484

I

1808]

THE PROSPECTIVE PREMIUM ON THE GOLD.

234

It is apparent from these figures that our grain shippers have not been
in a position to make shipments this fall at all proportionate to the large
increase in our surplus; it is therefore to be expected that sooner or
later we shall have a large amount o f exchange made against this class of
exports. Our exports of breadstuffs for the fiscal year 1807-8, are
stated in the official returns at 869,000,000,
The exportable surplus of
wheat alone, this year, is estimated at about 40,000,000 bushels, which,
at current and probable prices, would realize much more than our whole
shipments o f flour and grain last year. The corn crop is also abundant
and likely to yield us a liberal exportable surplus; when it is considered
that the whole quantity o f corn exported last fiscal year was only 11,500,000 bushels, it is apparent that here also there must be some gain in the
value of our shipments. These facts show that, allowing for the late
decline in prices, our exports of breadstuff's, for the current fiscal year, may
easily realize from 825,000,000 to 830,000,000 more than those o f 1867-8,
The cotton crop is being held back from the same cause which checks
the shipments of breadstuff's. The planters are this year absolute owners
o f their cotton, and the stocks being small, they hold their cotton with
considerable firmness. It is quite possible that there may be a temporary
check in the exports o f this staple from this cause; but there is every
reason to expect that the result for the whole year will exceed in value
that of last year. From all thus far ascertained as to the prospect o f the
yield, it would apparently be safe to estimate that we shall have a surplus
o f 1,700,000 bales for export. Estimating the average price for the year
at the low figure of 20 cents per pound (with gold averaging, say 135),
the total value of our exports of this staple would be about 8150,000,000,
which, though about the same in currency value as the cotton exports of
1867-8, would yet yield a higher value in gold, the premium having then
averaged above the foregoing estimate.
The course of supply and demand upon the gold market for the last
quarter of the year is not likely to affect materially the premium. A
large amount of coin interest becomes payable at the Treasury on the 1st
of November, and although probably some 814,000,000 of the total
may be due to foreign bondholders, yet it is anticipated among foreign
bankers that fully one half that amount will be set off by remittances
o f bonds. From this date, to the close of the year, the supply of com.
mercial bills is generally such as to require comparatively small exports
o f specie. The probable course of market supply and demand for the
whole country, for the months of October, November and December, may
be thus estimated:
PROBABLE B D P P L r.

F rom
From
From
F rom

California......................................................................................................... $7,500,000
import-*........................................................................................................... 1,500,000
Novem ber coin interest............................................................................. 30,000,000
Treasury sales........................................................................................... . 12,000,000

Total supply............................................ ......................................................................... $51,000,000




244

FACTITIOUS INTERFERENCE WITH MONET MARKET. I November,
PRO BABLE W IT H D R A W A L S .

Cnstoms duties......... ...................................................................
....$37,500,000
For export (same as ia 1867)......... ....................................................................... 16,000,000

F or

Total withdrawals ............................................................................................ 63,500,003-----------------Probable excess o f withdrawals .................................................................. ................ $2,500,000

It would thus appear probable that the movement of specie is likely to
result in a slight loss from the market within the three months. On the
1st of October, however, there was $20,200,000 of private gold on
deposit in the Treasury, against $14,800,000 at the same date of 18 6 1 ;
so that the market will, on the whole, probably be better supplied for ihe
current quarter than during the same period o f last year.

FACTITIOUS INTERFERENCE WITH THE MONET MARKET.
The sudden advance of 2 to 3 per cent in the rate of interest, at
the close of September, was not wholly unexpected with those familiar
with the sinuosities of Wall street. In September and October, the crop
movements usually take a considerable amount of currency from the New
York banks to the interior, and call for an increase of discounts; and as
the banks are required to make up their quarterly statement on the first
Monday in October, there are always ordinary causes at work about the
close of September which expose the loan market to extraneous and
artificial interference. This year, owing to well known causes, less cur­
rency was sent West in S-ptember than usual, and the re discounting of
grain bills was also on a limited scale; the result being that money was
loaned on call at 4 per cent up to near the close of the month, against
full V per cent at the same period o f last year. So little was this ease
expected that Wall street dealers borrowed largely late in August and early
in September at 6 and 7 per cent on three months tim e; and these
anticipatory transactions so far reduced the demand for call loans that
there can be little doubt the low rates would have been continued into
October had the market been allowed to take its natural course.
During the last week of the month, however, certain operations were
undertaken designed specifically to tighten the market, and money sud­
denly became so scarce that, upon a large proportion of the call loans
made outside the banks, rates o f interest were paid above the legal limit.
These transactions were conducted by wealthy combinations of stock specu­
lators, the object being to break down the prices o f securities; a pur­
pose, however, which was Dot realized, the larger holders of stocks having
fortified themselves by time loans. Both gold and securities appear to
have been used for borrowing greenbacks, the currency thus obtained
being either locked up in the borrower’s safe, or sealed up and used as




1868]

FACTITIOUS INTERFERENCE WITH MONEY MARKET.

245

collateral for new loans and the operation repeated to any extent con­
sistent with the secresv necessary to such a transaction. It is estimated
that, in this way, several millions of legal tender notes were temporarily
held out of circulation until Saturday la st; when, the banks having com.
pleted their preparations for the quarterly statement, the money was
returned into circulation. These operations imply a collusion between bank
managers and the speculators conducting them, to which it is difficult
to conceive how any conservative bank official could lend himself. There ^
is some reason for supposing, however, that bank officers may have been
overborne through the parties to the “ tying-up operations ” securing
temporarily a large amount of the stock o f the bank.
These operations are not a violation of any existing law ; nor is it
perhaps desirable that any effort should be made to restrain them by legal
enactment; for means would always be found to evade any such restric­
tions. The remedy must rather be found in the moral opprobrium which
ever falls upon those who adopt dishonorable expedients in business, and in
the measures of self protection which are early learnt by those who suffer
from these transactions. Last fall, the expedient of locking up greenbacks
was successful; holders of stocks were compelled to realise, panic seized
upon the stock market, securities declined heavily, brokers first failed and
then merchants; and out o f this ruin the authors made rich gains. The
lesson, however, was too costly to be soon forgotten ; and the result was
that although the locking-up process was tried previous to the spring
quarterly bank statement, parties earning secuties were found to have
protected themselves by long loans, as they have done in this last instance;
so that after one successful experiment, there have been two unsuccessful.
It is reasonable to hope that the participators in these disreputable raids
upon the loan market, after finding that they only gratuitously degrade
themselves before the community by their efforts, will adopt more honor­
able means for conducting their speculations. It is nevertheless a reflec­
tion upon the business morality o f the financial metropolis of the country
that prominent capitalists, controlling large corporate interests, should be
found willing to stoop to such degrading and mischievous expedients.
Such proceedings have a direct tendency to encourage laxity of honor
in W all street operations generally, and to lower the standing of that
practical integrity which has made the brokers’ word as good as his bond J
they strike at the foundation of all confidence and good faith.
An attempt has been made in some quarters to throw the blame for the
late stringency upon the Treasury Department, as if to conceal the real
authors of the derang ments. A fair examination of the facts,.however,
will we think exonerate the Government officials from all responsibility.
On the 1st of September, the Treasury held in its vaults but $15,000,000




246

FACTITIOUS INTERFERENCE WITH MONET MARKET. [ November,

of currency. There was good reason for expecting that the receipts from
internal revenue in September would fall below the disbursements of the
month ; while itwas necessary to keep in view the possibility o f the banks,
in preparing for their quarterly statement, having to present a portion of
their Three Per Cent Certificates for redemption. Under these circum­
stances, it was clear that the Secretary must resort to the sale of bonds or
gold, or both, in order to realize currency; although the extent to which
it was necessary to carry these sales could be ascertained only by the
gradual discovery of the amount o f the disbursements; so that a certain
portion of the sales was of necessity thrown toward the latter part of the
month. The Assistant Treasurer commenced with the sale o f bonds ; and
from the last debt statement it would appear that $3,600,000 of FiveTwenties were sold, realizing about $4,000,000. After the third week of
September, the sales o f bonds were suspended, and on the 22d the Assis­
tant Treasurer began to realize on gold, continuing his sales until the 30th,
and selling in all $2,300,000. During the sales o f bonds, and o f nearly
one-half o f the sales o f gold, money was extremely easy, call loans being
3 @ 5 per cen t; and, upon the stringency setting in, the sales of gold were
suspended, and the checks received against the sales o f the last two or
three days of the month were held back from presentation at the banks,
out o f voluntary consideration for their convenience. There was certainly
nothing in these transactions calculated to interfere with the convenience
o f the banks; on the contrary, the Department showed a commendable
readiness to accommodate them, as far as possible, when they had been
subjected to pressure from speculative combinations. It is true that the
Treasury realised, in September, about $7,250,000 in bonds and gold)
taking temporarily that amount out o f the banks; but these receipts were
immediately disbursed; indeed, from the fact o f the currency balance
being on the 1st of October only $13,300,000. It appears that the Treasury
paid to the banks in September $1,700,000 more than it received— a fact
which again shows the pressing necessity o f the Secretary realising upon
gold and bonds. In view o f these facts, we cannot but regard the late
animadve’ sions upon the action of the Treasury in these matters as very
inconsiderate, not to say uncandid and unjust.
The frequent recurrence of extraneous tampering with the money mar­
ket has led many to doubt the wisdom o f the provision in the National
Bank Act requiring the banks to make a statement of their condition
on the first Monday o f each quarter. The knowledge that on a certain
day o f April and October, periods when money is always most active, the
banks are apt to call in loans in order to place their affairs in a conserva­
tive condition, holds out a temptation to seize the occasion for producing
an artificial stringency; and so strong is the inducement that tho experi­




1868 I

247

CHICAGO, BURLINGTON AND QUINCY RAILROAD.

ment has been made repeatedly upon an extended scale, and the recurrence
of the April and October statements has thus become a source of much
uneasiness in the money market and o f regular periodical disturbance
to business. It has been proposed, therefore, that Congress should remedy
the evil by requiring the statements to be made, not upon any fixed and
invariable date, but at periods to be determined fiom time to time by
the Comptroller, and always antecedent to the date of notification and of
the required return. In this way, it is urged, the dangers and the
inconveniences, as well as the deceptions, attendant upon the present
system of statements would be effectually obviated. There are, however,
obvious objections to this proposed change, but we forego for the present
the discussion of the subject.

CHICAGO, BURLINGTON AND QUINCY RAILROAD.
(O rganized U nder

the

C onsolidation

op

J uly 9, 1856,

and

S ubsequent

P urchases .)
The Chicago, Burlington and Quincy Railroad is a consoli ation o f the Chi­
cago and Aurora and the Central Military Tract Railroads.

The company

acquir. d the Peoria and Oquawka and the Quincy and Chicago (form rly the
Northern Cross) railroads by purchase.

The Lewiston branch was a donation.

Previous to May 2 , 1864, when the new line between Aurora and Chicago was
opened to traffic, the cars o f the corrpany passed to and from Chicago over the
Galena and Chicago Union Raiiroad, from the Junction to Chicago, a dist nee
o f 30 miles, for the use o f which a stipulated percentage o f earnings was paid.
The lines o f the company, as now constructed, have a total lengthof 400 miles,
accounted for as follows :
A u rora and Chicago BaUro ( /—Junction CO m iles w est o f C h ica go...........................
to A rora.................................................................................................. 7 .............................. 13 miles.
Central M ilit'try t ract Railroad—Aurora to Galesburg.................................................... 125 “
Peoriaand Oquawka Railroad—Peoria, via Galesburg, to Burlington............................. 15 “
Quincy and Chicago Rail/ oad—Galesburg to Q uincy.......................................................... 100 “
Lewiston Branch Railroad—Yates City to L ew iston.........................................................
30 “
Chicago E i tension Railroad (new )—Aurora to C hicago..................................................... 21 “

These several lines constitute by combination—
A lin e from Chicago to Burlington......................................................................................... 204 miles.
A line from Chicago to Q u in cy................................................................................................ 202 *'
A line from Peoria to Burlington............................................................................................. 05 “

— and two branches, viz.: one from Aurora to the Chicago Junctionl3 miles, and
the other from Yates City to Lewiston, the latter to be ext- nded north to Buda
and Dixon, by the D ixon , Peoria and Hannibal Railroad Company, and south
to Hannibal. The Am erican Ctntral Railroad, now on the eve o f completion,
will leave Galva on the main line, 142 miles from Chicago, and extend to New
Boston, on the Mississippi, affording an aditional feeder o f the Chicago, Burling,
ton and Quincy Railroad. A t Burlington the Chicago, Burlington and Quincy
road connects with the Burlington and Missouri River Railroad, which will next
year be completed to a junction with the Union Pacific Railroad at or beyond




24 8

Ch i c a g o , Bu r l i n g t o n

and

q u in c y

r a il r o a d .

[November,

Omaha. A t Quincy connection is made with aqi Hannibal and St. Joseph
Railroad, which, with its extensions, already connects with the Central and East­
ern Divisions o f the Union Pacific Railroad. The eastern connections are ample,
including all the railroads leaving Chicago, and the more direct line leaving
Peoria and forming part o f the Columbus, Chicago and Indianapolis Central
Railroad Line.
The operating accounts o f the company for the years ending A pril 30,18 6 7 and
1868, compare as si own in the statement which follows :
1866-67.
Pa?senger earnings..................................... $1,643,714 15
F reigh t............................................................ 4,124,692 99
Mails and m iscellaneous.............................
414,730 91

1867-68.
$1482,506 92
4,21 911 36
455,228 97

Increase. Decrease.
$
$61,207 23
92,218 37
40,498 06

Total gross earnings.............................$6,083,133 05
Operating expenses...................................... 3,093 574 07

$6,154,647 25
3,067,165 55

$71,509 20
...............

$3, 87,481 70

$97,917 72

N et earnings........................................... $2,989,503 98

$26,408
......52

The company owned at the close o f the tw o last year-, respectively, the follow"
ing amdunt o f rolling s to c k : L o c motives, 1 1 9 -1 2 2 ; passenger cars, 5 5 -5 5 ;
baggage, mail and express cars, 2 7 -3 0 ; pay car, 0 - 1 ; house, freight and cattle
cars, 1,659-1,817 ; Blue Line cars 4 0 -0 0 : platform and coal cars, 4 9 3 -5 5 5 ;
drovers’ and conductors’ cars, 4 3 -4 9 ; gravel cars, 4 0 -4 0 ; tool cars, 2 - 2 ; pile
driving car, 1 - 1 ; rubble cars, 8 6 -9 9 ; hand cars, 12*^-123; and wrecking cars,
2 -2 — total cars, 2,571-2,774, being an in cea se o f 203 in the last year
The number o f miles run by locomotives, a d the number o f pas-engers and
tons o f freight carried, with the mileage thereof, is shown in the following account:
1866-67. 1867-68.
644,560
7 0,560
1 192,752 1,225,100
584,254
71 ,'94
2,421,566 2,648,554

Increase De reasa
66,000
32.348
..........

Passe gers carried east...................................................
4'0,918
449.060
44
14
w est.................................................
466,902
458.978
44
“
both w a y s.................. . .............
917,820
908,0-8
Passenger m ileage............................................................ 42,:-34,983 39,781,829

1 858
7,924
9,782
2,553,154

Miles run by passenger trains.
“
“
freight tra in s...
44
u
othertrai s ..........
T o al m lea ruu by trains........

T o r s carried east...........
“
“
west
...
44
44
both ways
Tonnage m il.ag e.............

593.^23
508,583
381,740
428,906
978,563
937.489
135,000,000132,435,027

128,*40

......

226,988

........ .

.........
44,166
.........
.........

85,240
.. . .
41,074
2,564,973

The earnings, expenses and profits per mile o f road operated in the tw o years,
as above, was as follows :
Gross eamir gs per mile................................................... $15,207 84 $15,386 62
Operating expenses per m ile..........................................
7,733 93 7,667 91
Profits (net earnings) per mLe......................................
7.473 91 7,718 71
> xpenses, per cent .........................................................
50.85
49.83
T tx e s to gross earnings................................................... 3 .0 7 p . c . 3 . 2 4 p . c .

$178 78
$ .........
.
66 02
244 80
..........
....
i.02
0 . 1 7 p . c ................

The income account for the jears 1866-67 and 1867-68 shows the following
results:
Falance to credit May 1.............................
N et e .rnings
..........................................
Interesi ann exchange...............................
Trustees Q,uiu do C. i t i t ............................

1866-67.
1867-68.
Increase
$58S,i91 55 $1,'05,4 6 00 $l,3 i»,8 0i 45
2,989,66 i 98 3,087,481 70
97,917 72
63,723 70
43,081 39
...........
.............
24,571 74
24,571 74

Total revenue............................... .........$3,641,979 23 $5,060,630 83 $1,418,651 60




Decrease.
, $ .............
.............
20,642 31
.............
$ . ____ _

18681

CHICAGO, BURLINGTON AND QUINCY RAILROAD,

Disbursed as herewith stated :
Rent o f tracks & depots..........................
Interest on bond*........................................
Taxes, t te & County .............................
U. S. tax on earn’ gs, & c...........................
Transfer office expenses.............................
D ivi’ ud, May 15, ’ 66 & ’ 67 ........................
“
N ov. l, '66,. audSept. 5, ’ 6 7 ...
Dividend, March 16, ’ 68.............................
U. S tax on dividends .............................
Distribution o f sto< k Sent 15,1 S 6 7 .......
Bonds purchased for sinking fund.........

$14,588 14
40H,758 31
113,895 74
72,278 94
1,000 00
509.650 00
509.650 00

62,922 i6
50,600 00

$10,970
363,554
128,305
71,231

$

00
93
90
20

$3,138 14
43,193 38

14,970 16
1,047 74

1,000 00

519.950 00
519.950 00
627,195 00
197.205 10
2,079 800 00
49,500 00

10.300
10.300
6 >-7,195
1 ,4,282
2,079,810

00
00
00
9i
00

i’iooob

Total disbursem ents......... ............... $1,736,483 23 $4 668,662 03 $2,832,178 80
Bal. to credit A pr. 30........................... $1,905,496 00

$491.968 80

............. $1,413,527 20

A further divid nd of 5 per cent was payable Sept. 1 5 ,1 8 6 8 . The distribu­
tion o f stock, Sept. 15, 1867, was equal to 20 per cent un the capital, then
amounting t > 810,399,010.

The total cash dividends during the last live years

have been equal t > 52 per cent, and the stock d tributed equil to 50 per cent.
The profits represented by stock distributions have been used in the road and
equipment, the co< struction o f the Burlington bridge and other improvements.
The bridge at Quincy does not involve the « nances o f the Company, being built
by a separate organization, under arrangements with all the companies whose
railroads terminate at that point. These bridges are about ready for use. The
bridge at Quincy is about 4,‘ 00 eet, and that at Burlington about 2,237 feet
long. Both rest upon stone piers, and the superstructure is entirely of iron, with
draws for the passage of r ver craft. When completed they will be structures of
great beauty as well as of very great importance to the business of the country
as well as o f the railroad companies. O f the total gross earnings of this Com­
pany iu 1867-68 (§6,154,647 25), ’ he amount contributed by business passing
over it to and from the Hannibal & S Joseph Railroad was §607,597 90, and
that to and from the Burlington and Missouri River Railroad §391,069 50, or
together §998,667 40, r early a sixth o f the aggregate busine s o f the Company.
'i he financial condition o f the Company, as exhibited on the balance-sheets
o f April 30, 1867 and 1868, is shown in the following statement, with the
increase and uecrease in the last-named year.
Capital s o c k ...........................
Fun ed debt........... ...............
Due N Cross KR bondholders
Unclaimed dividends...............
Unpaid acc unts & pay-rolls
Due ag« nts and oa d s.............
Sinking fund.............................
Balance o f incom e accou nt..

1867.

1868.

Increase.

Decrease.

$

$

$

$

10,399.010 00 12,544.030 00 2,145,020 00
5,458,25 j CO
5,218,75000
... 239,560 00
.................................... 270,00000270,000 (10
2,016 00
2,85300
837 00
299.492 81
296,85002
....
2,642 79
64,033 21
83,09982
19,066 61
828,726 99
878,22599
49,500 00
1,90- ,496 00
491,968t0
.... 1,413,527*20

T o t a l................................................................18,957,024 01 19,785,777 63

828,753 62

Against which amounts are charged , as follow s :
Construction (400 m ).......................................... 13,246,710 70 14,507,314 47 1,260,633 77
Equ p m e n t .......................................................... 2,956,327 52
>,407 62
Due on Northern Cross R . R . . . ....................
270,000 00
270,000 00
Ma er a s o n « an d ............................... .............
413,420 69
440,15! 05
26,730 36
___ . ..
Pullman Palace ar o, stock $72,300.............
48,200 00
48,200 00
Steam ferry and other coats.............................
41,383 41
45,456 91
4,073 50
Burlington depot grounds & accretions.......
326,137 55 126,137 55
Chicago t am sfor nansfeiring freight...........
4,500 00
4,500 00
203,373 96
A'count- and bills .................... ....................
307,817 97 104,444 01
180,023 22
Burl & M o. Kiv R R oif. st’ a ...........................
299,649 01 119,625 79
Due from agents and ro «ds.............................
64,728 94
64,435 65
293 09
D iv No. I-, and »ax hereon.............. ..............
547,315 78 647,315 7S
Deposi s i i New Y o k, Boston and Treasury
746,575 13
253,012 54
493,562 59
282,664 86
231,664 86
Dep. with liUstees sag fu n d ..........................
51,000 00
Total




18,957,024 01 19,785,777 63

828,753 62

250

[N ov ember,

MEMPHIS AND CHARLESTON RAILROAD.

The following table shows the highest and lowest sale prices o f this com ­
pany’s stock at .New Y ork , in euch month of the five years, 1863-68 :
Months.
186*3-64.
M>y .................................. 108 @120
J u n e ................................... 113 @116
J u l y .................................... 114 @ 1 1 6 #
A u g u s t............................... H5 @ 1 2 6 #
S ep t.................................... 120 @123
O c to b e r ............................. 122#@131
N u v c i.b r ........... ................ l b ’# @ 1 2 4 #
D ec m >"r........................... 115 @ 1 1 7 #
Ja. ua y ............................. 118 @129
F eb ru a ry........................... 122 @133
M a rc h ................................ 131#@146
A p i i l .................................. 132 @149

1864-65.
126 @142
126#@132
126
@132
127
@131
117
@127
111
@115
115 @120
1 !6#@ 118
114 @120
115 @120
100 @118
103 @117

1865-66.
102 @110
104 @1C8
109#@112
111 @113
112 @125
124 @ 1 0
110#@115
113 @115
109#@114
112 @112
112 @115
115 @ 1 1 7 #

1866-67.
114 @117
116 @121
124 @125
129 @130
12S @138%
132#@137
131 @ 1 3 3 #
130 @134
129 @132
229 @ 1 3 0 #
129%@i32
130 @135

1867-68.
130 @132
132 @143
144 @150
126 @150
124 @ 1 2 6 #
126#@137
1*3 @135
136 @137
133 @ 1 4 3 #
144 @ 1 5 3 #
149#@150
150 @ i50

Y e a r .................................... 108 @149
100 @142
102 @130
114 @ 1 3 8 # 124 @ 1 5 3 #
D ividends...........................
9 p. c.
13 p. c.
10 p. c.
10 p. c.
10^ p. c.
D istrio’ ns
....................
May 25, 10 44 Oct. 31, 20 “
Sep 15, 20 “
Additional f<»r 1868-69: May 149@ 150#; June 151@154; July 164@165; A ugust 170@173>
September . . . @ . . . ; range 149@173.

MEMPHIS AND CHARLESTON RAILROAD.
A rticles relating to the Memphis and Chariest n Railroad were published
in the M agazine o f November, 1866, and November, 1867* W e now add
another year’s record to our previous r< views, comparing the results c f the two
fisca years end ng respectively June 30, 1867 and 1868. The gross earnings
from transportation compare as shown in the following summary:
1866-67.
$910,799 03
636,886 85
Mfiil................................................... 27,199 62
70,720 00
Express
................. .................................
9,406 93
R ei.ts and pr v ile g e s .....................................

1817-68.
$589,824 41
465,845 79
4 ; ,700 39
69,7U0 00
17,843 54

1,661,612 43

1,174,914 13

Passe' ger earnings ......................................
F r e i^ h i............................................................

Total

Increase.
$

........

Decrease.
$320,974 02
171,041 06

13*900'77
17,020 CO
8.436 61
486,693 80

Le^s, t e lollowing amounts expended :
T ranspoitation............................................... $334,095 09
M ot ve p o w e r ...................................
338,848 52
Maintenance o f w a y...................................... ,329.497 00
Maintenance o f cars......................................
111,984 36

$282,685
258,278
200.6:0
82,533

67
28
07
89

Total

1,114,424 97

8^0,107 86

N et earnings

$547,187 46

$344,806 27

$

$51,409
80.570
12 >,886
29,450

47
24
93
47

284,317 11
$

$202,381 19

The extraordinary falling off in revenue in 1867-68, as compared with the pre­
vious year, is attributable in a great measure to the short crop of cotton and
the impoverished condition o f the country through which the line passes, as well
as to a la»ge reduction made in local rates, both freight and passenger.

Besides,

the epidemic which prevailed at Memphis last fall and summer almost suspended
business for four mont s, while the inability o f the V irginia rai roads to move
cotton promptly, and the derangements at Char eston were a'so great hindrances,
preventing large shipments to Eastern cities for several months during the tu siness seison.
The road is now in fair running order, and the stock of cars and locomotives
ample for any ordinary requirements o f business.

Dur r g the year there was

added to the equipment 102 b ox freight, 43 platform and 10 stock cars, and one
baggage car, and a further gradual increase is provided for.




The present equip­

1868]

251

MEMPHIS AND CHARLESTON RAILROAD,

ment consists of 55 locomotives, 38 passenger and mail cars, 7 baggage cars, 1
hay und 1 street car, 3 '6 box and 156 platform cars, 14 stock cars 1 wrecking
car and 79 road and hand cars. T e mi eage and operations in 1866-7 and 186768, compare as follows :
1866-67.
Train, m ile s ..............................................
Passengers ca rr ie d ........................ .. ..
Cotton (b lies) transported....................

1867-68.
751,942
127,016
95,288

Dec.
34,389
96,802
6,557

Increase.

....

The des ination of the cotton was as follows :
M e m p h is ...................................................
Corinth and Tuscum bia........................
Decatur................................................... ..
Hunt->vill°!................................................
Steve s o n ............................................. ........................
Chattanoog i ......... ..................................

331

73,764
238
4,359
646
573
15,708

8,313
157
1,897
36
242
3,C8a

....

The total fiscal operations of the company for the years as above, as exhibited
on the piofit and loss account are shown in the following abstract:
1867 8.
1866 7.
1866-7.
Balance, July 1 .............. . . .
$120,325 Balance, July 1 ...........
s ....
Gro sta rn in s............... .. 1,661,612 1,174,914 E xpenses...................... . . . 1,114 424
inter, on State loans. . .
Inter stand exchange.. . . .
23,865
433,673
on bonds .........
Balance, June 30.............
.
90,580
“
and exch a n g e...
Divid’ d N o. 9, 3 p. c . . . . . . . .
....
Discount on b o n d s ... . . . . . 179,845
Sundries........................
balance, June 30..........
T o t i l ...........................

.. $1,685,477 $1,728,912

1867-8.
$ ...
830,107
95,731
111,060
20,675
159,381
490,964
20,990

T o ta l............................ .. *1,685,477 $1,7*8,912

Since the completion of the road and branches (Jan. 1, 1866) there has been
dec'ared and paid nine dividend*— two stock and seven cash. The following is
a list thereof with the date of declaration, rate and in what paid.
60 per cent,
N o. 1 ... Decem ber I, 1859..
2
____________February 2 *, 1860.
. 4
“
3
____________A gus\ 1869...................
4
February, 1801 .. .
. 4
“
5 . . s. ptemb r 30,1861
6
____________January 9,1862________
.3 3 # “
7 .. . February 2. 1862...
4
“
8
March 3 ,1863........
. 4
“
9 ..
. . March 31, 1868.............
. 3
“

stock,
cash . . . .
“ .....

$1,351,185
152.501
152,50
152.501
152.501
1,330.842
212,382
212,509
159,381

11 ..

*»
s t o c k ....
cash
conf. cur
ca sh . . . .

The sto k divdends represented earnings u ed in construction, and were charged
to that account. The balance sheets of the 30th June, 1867 and 1868, respect­
ively, compare as follow s:
1867.
1868.
Increase. Decrease.
Capita1 stock ..................................................... $5,312,725 00 $5,312,725 00
Tennessee state l o a n .......
........................
1,595,530 00
1,595,530 00
1st Mort 7 per cent bonds (conv.), Is 8 0 ... 1,294,000 00
1,293 000 00
1,000 00
2d Mor . 7 p. c •o ds, 1885...........................
237.000 00
1,<00,000 00 763,000 00
246,119 41
Bills p »y b l e .....................................................
1!1,228 55
134,890 86
39,445 0>
Unpaid coupon* ............................................
156,975 00
117,530 00
Unp id dividends ..........................................
34,218 98
34,343 63
124 70
Due U it,< d s ta g e s ..........................................
272,493 62
272,403 02
Sus-pense a cco u n t...........................................
3,733*09
3,733 09
Current accounts.............................................
141,535 49
70,685 22
212,220 71
1,174,914 13
510,563 68
Transportation receipts................................. 1,685,477 81

$ .....

Total

Per c

$11,046,669. 93 $10,706,454 94
Dtra

$ .....

$ ..........$340,214 99

■ charges on the following accounts—

R oa d ................................................................... $5,959,003 62 $6,200,638 16 $241,634 54
Equipm ent........................................................ 1,002,601 22
1,134,553 50 131,957 28
Incidentals .....................................................
324,581 76
326,411 46
l,c29 70
Construction,




$7,286,186 60 $7,661,608 12 $375,421 52

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

253

[November,

CHICAGO AND NORTHWESTERN RAILWAY.

Materials, etc.....................................
Stock - o f ot ercom i a n ie s ...............
Transportation....................................
Interest and e x ch a n g e ......................
Profit and l o s s ....................................
Discount on bonds.............................
Coupon bonds on hand......................
Bills receivable ................................. ...........
Current accounts, &c..........................
Cash on h a n d .......................................

58
00
97
00
04
00
00
105,101 42
09
99

1S3.543
211,785
830,107
2^7,407
59.947
490.904
464.0(0
81,050
42 -,S71
67,508

52
83
!*6
75
08
77
00
44
48
04

55,613 06

12,105 88

284,317 11

35,049 75

18.51V 50

311,119 77

714.500 00
23,453 98
38 024 79
14,524 95
$ . .. . . |340.214 99

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

Tbis balance sheet shows that large progress has been made during the year in
the liquidation o f the floating liabilities of the company, ana notwithstanding the
diminished earnings o f 1867-68, a marked improver) ent in the financial condilion
is recognizable. The earnings for 1868-69 are expected to r ach a dividend
paying point. This expectation is based on the fair cordition o f the road and
ihe sufficiency o f r lling stock, and also on the increas d crops o f cotton and
cereals to be moved. The amount required to pay interest on all the bonds and
6 per cent on the stock is §575,007 30— viz., interest on Tennessee loan,
§95,731 80 ; on first mortgage bonds, §90,510, and on second mortgage bonds,
§70,000, and six per cent on the stock, §318,765 50.

CHICAGO AND NORTHWESTERN RAILWAY.
[Consolidation (June, 1864) o f Chicago and Northwestern, Galena and
Chicago and Peninsula Railroads, and including lailroads constructed, purchased
and leased].
The lines o f railroad owned, leased and operated by the Chicago and N orth­

western Railway Company are as follows:
W ise INSIN DlVIS o n ..........................................................................................................
Chicago, 111., o Fort H o w irl, W is................................................................
Kenosha, W is. to R ockford, 111.........................................................................

814.6 m iles.
242 2
72.4
261.0

G a l e n a D iv is io n .......................................................................................................... .

Chicago, III., 10 K. bank oi Mississippi (opp Clinton, la) ..........................
•i unction (10 m. W. Chicago) to Fieeport, il l .................................................
Elgin (4-2 m. N . W . Chicago) to Richmond, 111...............................................

I o w a D iv is io n (leaded liiwj) .......................

137 0
91.0
33.0

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

Bridge, E. bank o f Mississippi, III, to Clinton, l a ........... ..........................
1.1
Chicago, Iow a a d N, bra~ka R R.—Clinton to ■ edar Rapids, la . ..
81.3
Cedar R pids and M issouri R iver R n .— Cedar Rapids to Missouri River 271.6
M a d is o n D i v s i g n ..............................

354.0

67.6

(i

71.2

ti

85.0

it

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

Belvidere, 1 1 , (78 m. W . Chicago) to Madison, W is ..... .............................

67.6

P b n in s c l a D i v is io n .............................................................. .............................................

Escanaba, M ich ., to Cleveland Mines, Mich...................................................
Branches an Extensions to m in e s ..................................................................
M i l w a u k e e D iv is io n — Chicago, 111., to Milwaukee, W is ...............................

65.3
5.9

Total length o f railway owned,leased and operated, 1,153 4 n iles,second track
30 miles, and sidings (in Chicago 27.7, and on lines 138.7) 166.4 miles ; gauge’

4 feet 8A inches.
The following shows the distribution o f the 2d track and tidings on the several
lines, and the total length o f track in use at the close o f 1 8 6 7 -6 8 :
Lines o f Rr> d
Chicago t Fort H ow ard........................ ..
Kenosha to R ockford...................................
Chicago to Clinton ( ncl. 30 m. 2d track),
Chicago Junction to F reeport...................
Elgin to Richm ond....... .............................
Clinton to Cedar R a p id s.. ...................... .
Cedar rapids to ' is ouri B iv e r..............
Belvidere to Madison...................................
Escanab « to m ines........... ............................
Chicago to M ilwaukee.............................
Total line, 2d track and sidings.........




,-------]Miles o f Trtick-------,
Main. Sidings.
Total.
242.2
30 7
278.0
72.4
3.1
75.5
138.1
78.6
216.7
91 0
13 3
104.3
33.0
2.8
35.8
81.3
14.5
95.8
271.G
21.8
290.4
67.6
4.0
71 6
71.2
9.2
80.4
9 4
94.4
85.0
l,1 5 i.4

196.4

1,349.8

1868]

CHICAGO AND NORTHWESTERN RAILWAY.

The bridge across the Mississippi at Clinton was completed January 7, 1 8 6 5;
the Peninsula Railroad (E scanabato Negaunee, 62 m ) was open d June 1 ,1 8 6 ';
the Chicago and Milwaukee Railway (85 m ), was leased May 8, 1866, and the
Ced«r Rapids and Missouri River Railroad was opened from Boone to the
Missouri R iver (151 miles), A pril 1 ,1 8 6 7 .

Since these dates these several lines

have been operated by the Chicago and Northwestern Railw ay Company, and
their operations included in the general accounts. In O ctober, 1867, the Chicago
and Northwestern Company purchased certain interests in the Winona, and
St. Peter, aud La Crosse, Trempealeau and Prescott Railroads, and have
guaranteed bonds to the amoun-t of §800,000, issued by the latter. These com­
panies, however, retain their separate organization, and in no manner form part
o f the lines operated by this company.
The stock o f locomotives and cars on hand at the date o f consolidation, and at
the termination (M ay 31) o f each subsequent year has been as fol o w s :

i

—1 st class
...................... .
2 d class and switchings..
Total number...................

June 1, ’ 61.1864-5.1865-6. 1866-7. ’ 67-8.
123
139
203
204
31
33
44
44
154
172
247
248

Description and number o f ca rs :
79
15
94
83
75
..

I —1 st cla ss.................................
Passengers 2cl class...................................
( T ota l........................................
< aboose and w a y ............................. ............
Baggage, mail and express.........................
Boarding........................... ............................
f — B o x .................................... . . . . .
I Piatform .....................................
Freight-! C attle..........................................
I C o a l............................................
[ T o t a l................................. ........
Iron o r e ..................................................., . . . .
T otal o f all cars..............................................

2,000

. 2^655

PASSENGER AND FREIGHT

611
109
53
2,773
214
3,239

103

21

124
99
83

2

2,230
737
207
53
3,227
322
3,857

112
21

118

133
117

139
137
107
4
3,56
901
307
53
4,824
522
5,733

101

4
8,554
901
307
53
4,815
519
5,689

21

BUSINESS,

The number o f passengers carried, and the tons o f freight transported in each
o f the four years ending May 3 1 ,1 8 6 5 -6 8 , are shown in the following statement:
Average lengtjh op erated................................................
Passengers] ^ o m Chicago
oirri erf
i 0 C hicago. . . .
carried. ( T o & from all stations
(F
rom C hicago..............
Tonnage
S
j T o Chicago
carried
T o & from all stations.............................

1864 5.
1865-6.
1866-7.
3867-3.
(846.2m.) (924.5 m .) (1027.Gm) (1,153m.)
259,034
424,192
413,440
445,850
339,164
214,129
345,182
371,673
1,096,697
1,533,028 1,711,507
214,243
405,510
485,225
530, -37
760,177
733,292
956,484 1,370,-' 16 1,726,919 1,982,429

The freight is classified as follows :
M erchandize........................................
C oal............................................................................... “
Lum ber.................. .................................................... M. ft
F lo a r.................................................
W heat....................................................................
bush
C orn.............................................................................. “
Oats ............................................................................ “
R ye and barley........................................................... “
Dressed h og s...............................................................tons
H id es............................................................................ “
Iron .
P ig iron .............................
Iron nre...................... .
Produce o f c o u n t r y ........
Salt....................................
•bbls
Heavy 4th class articles.
[H o r s e s .. . .
Live stock-j Cattle
H o g s ..
[ Sheep.
T o ta ls in n e t t o n s .......................................................




tons 172.139
145,751
206,073
28.224
30,167
49,203
121,293
£07,320
163,287
358,024 bbls897,461 1,208,822
4,877,977 9,733,488 4),218,288
1,950,-130 4,027,202 4,074,948
5,901,893 5,650 278 4,492,691
521,069
950.140 1,611,863
11,512
17,274
16,478

1,868

34,144
85,864
13,115
126,526
235,835
113,053
956,484

21,369
221
38,987
43,536
84,172
81,881
7,444
107,698
279,019
64,940
1,370,516

233,583
86,926

2S6,780
1,061.617
9,458,416
2,754,850

5,363,492
1,665,112
8,608

47,314

83,796

1,956
141,428
84.615
90,681
84.615
7,6S6

236.135
41.846
112,043
41.846
6,628

77,814

5,672

249,896
51,092

53,199
316,0)1
40,121

1,726,919

1,982,429

254

[November,

Ch i c a g o a n d N o r t h w e s t e r n r a i l w a y .
REVENUE, EARNINGS, EXPENSES, AC.

The following statement exhibits the sources and amounts o f revenue, and the
objects o f disbursement in the same four years ending May 31, 1868 :
18M-5.
1865-fi.
1S66-T.
1867-8.
Passenger earnings...................... ........ $2,167,901 77 $2,510,727 52 $2,945,016 19 $3,593,031 47
Freight
“
. . ...............
4,448,598 57
5,893,191 31
6.649,589 81
8,266,808 40
E xpress
“
.......................... . . .
90,045 37
157,157 30
346,016 37
464,405 57
61,885 90
77,660 21
124,485 27
172,605 90
Ala 1
“ ....................................
Miscellan’ s “
....................................
46,317 53
105,103 86
96,627 81
137,994 12
T otalgrossearn’ s............................. $6,820,749 75 $8,243,840 28 $10,161,735 45 $12,614,848 16
Operating exp en ses............................. $4,293,472 86
157,769 07
U . S. taxes on earn’ s.............................
V . S. rey. tax stamps......................................................
btate & county taxes.............................
168,119 91

$5,072,959 84 $6,724,265 45 $7,483,484 04
200,169 48
101,811 96
89,245 06
4,514 64
5,68 1 22
6.152 31
249,139 99
266,426 59
239,764 79

Total o ; crating expenses and taxes $4,621,861 84 $5,527,083 43
Earn’ s le S ' expenses............................. $2,199,387 91
Expenses to earnings (exci’ ve o f taxes)
62.98 p.c.
T a xes to earning s .................................
4.77
E x p nses to earnings (inclusive o f
t a x e s )...................................................
67.75

$2,716,756 83
61.54 p.c.
5.50

$7,103,993 20 $1,873,646 60
$3,057,712 25 $4,74l,i99 86
66.17 p .c.
59 36 p.c.
3.74
3.06

67.04

69.91

62 42

The following is a statement o f th i gros3 earnings monthly for the same years :
J u re .....................................................
J u ly ......................................................
A u u s t ................................................
Septem ber..........................................
O ctob er...............................................
N ovem ber
...................................
D ecem b er...........................................
January...............................................
February.. ........................................
March ...............................................
A p ril....................................................
M a y ......................................................

1S64-5.
$5(55,14'> 40
480,709 9*2
519,305 93
669,(504 75
729,759 13
716,378 30
5 3,4(J0 50
541,004 79
$182,164 28
499,296 24
468,357 69
585,622 82

Y* arly earn’g s ..................................... $6,820,749 75
568,395 81
Monthly average ..............................
Yearly earnings per m ile operated.
Year y expenses per mile oper ted
Y< ar y profits per mile operated..
Expenses to earnings per cent . . . .

1863-6.
$747,942 30
7u2,691 51
767.508 * 7
946.707 12
932,682 78
754.671 04
5 *7,842 49
523,565 85
319,917 24
523,844 97
517,518 96
858,948 04

1866-7.
$92 ,983 47
808,523 87
797,474 96
1,000,085 83
1,200,211 95
1,010 892 24
712,358 68
696,146 61
574,664 34
765,398 13
77.,279 53
895,711 84

1867-°.
$883,658 13
8.*8,2)4 40
1,063.236 47
1,448,942 36
1,541, 56 80
1,211.530 30
879,900 39
724,889 S3
8"7,477 82
850,192 67
1,094,597 56
1,211,149 81

$8,243,840 28 $10,161,735 45
686,986 69
846,977 85

$12 614,846 46
1,051,237 20

8,060 45
5,461 31
2,599 14
67.75

8,917 08
5,978 45
2,933 63
67.04

9,888 80
6,913 19
2,975 61
69.91

10,937 09
6,826 47
4,110 62
62 42

The earnings and expenses by divisions for the year 1867-68, was as follows :
Gross
r-O perating expenses.—,
N ett
Divisions.
earnings.
Am ount. Hates, p.c. earnings.
W is c o n s n ....................................................... $3,156,059 79 $2,0o9,l?3 18
63.66 $1, 46.885 81
4,293,657 81
2,482,706 93
57 82
1,8 0,951 38
G a len a ............................................................
Iow a .............................................................
3,415,695 87
2,360,96! 73
69.12
1,054,734 09
M adison..........................................................
226,797 91
153,375 12
67.62
73 422 79
P e n in s u la ......................................................
44 ,0*8 48
278,837 90
62.65
166, 86 48
Milwaukee
.............................................
1,077,617 60
588,592 29
54.62
489,0.5 31
T o ta l.........................................................$12,614,846 46
INCOME

$7.S73,646 60

62.42

$4,741,199 68

ACCOUNT— DISPOSITION OF REVENUE.

The following statement exhibits the nett receipts from earnings, and the mode
o f their disbursement for’ the four uscal years, as above:
1864-65.

$

1865-0(1.

$

18G6-67.

$

1807-68.

$

Balance from previous year ........................................
. . 157.603 59 483,988 22 408,224-16
N ett e a rn in g in y e a r .......................................... 2,199,387 91 2,716,7 6 83 3,057,742 25 4,741, •99 86
T otal resources.............................................. 2,"99,387 91 ?,874,360 42 3,541,73 ) 47 5,209,42 1 32




1868]

255

CHICAGO AND NORTHWESTERN RAILWAY.

Disbursed on the following accounts :
Inter st an 1 exchange (includin? interest and
divide ids on the Chic, and Milw R i way
and the Beloit & Mad. R ti bonds and stocks I
Sin vm g funds ......................................................... f
Chic, Iowa & Nebr. Rtt. ren t..* * .....................\
C dar R. & M-> Riv. RR ren t............................ f
Rif-coum on secur tit-s sold .................................
D ivid-nds on prefer ed s tock .............................
Dividenus on com m on s to c k ...............................

47n nni 943,795 85 1,275,324 02 1,342,878 36
»ou,<uu uu-j 6512o 00
59,120 00
53.120 00
no] 365,831 59 373,411 53 562.990 65
’ 152,6Ho 23 265,,"19 41
419,848 34
5 1,326 19 415,799 x0 117,83 05
...............
372,872 15 447,135 33 982,000 0u*l,323J80 00
..........................................................*1,486,930 00
i-.-a

oqw-mk

Total disbursem ents........................ ......... 2,04 1,784 32 2,390,372 20 3,073,506 01 5,188 947 15
Balance to next year............................................

$157,603 59 $483,988 22 $468,224 46

$20,476 97

GENERAL BALANCE SHEET.

The financial condition o f the Chicago and Northwestern Railway Company,
May 3 1 ,1 8 6 5 -6 8 , four years, is shown in the follow in; a b stra ct:
1865.

1866.

$

Capital stock—com m on . . .
“
—p r e le rie d ...
Funded d e b t .................. ‘ ..
B onos o f 'eased roads guar.
Nett floating debt .............
Balance o f i n c o m e ............

1867.

$

186S.

$

13,16* ,921 18 13,147,901 18 13,232,495 61
12,9'4,719 79 13,019,055 79 14,789.125 42
12,020,482 87 14,051, 00 00 16,25:,000 00
...............................................................
825,398 44
277,150 85 1,123 476 55
157,603 59
483,988 22
468 224 40

14,5557675 61
16,356.287 42
15,976.( 00 00
2,i 97,400 00
220,264 47
2", 76 97

d o t a l............... ............................................. 39,159,125 87 41,006,096 04 45 864,322 04 49,282,104 47

P er contra : the charges which follow—
Old construction
....................................... 34,349,605 79 35,079,^85 25 35,272,814 39 39,811,092 62
> ew con stiu ction ............................................ 1,350,835 18 1,26°,240 09 1,770,356 9 2,777,203 97
N e w e q lpm nt
.......................................... 1,102,024 40 1.539,935 02 4,828,399 50 4,9E8,8i<9 50
Securities on h a n d .......................................... 1,340,728 44 1,908,70^ 77 2,629,59 In
629,179 76
1,015,932 06 1 .208,625 91 1,3 3,158 76 1,055,728 62
Materia s on hand..........................................
T otal............................................................ 39,159,125 87 41,006,096 04 45,864,322 04 49,2S2,104 47
LIABILITIES AND

A

SSETS— FLOATING DEBT.

The following is a statement of the liabilities and assets, the difference between
the amounts o f which consti'utes the “ net floati g debt ” as given iu the annual
balance sheets of May 3 1 ,18 6 5 -6 8
Bills payable.................................. ...........
Galena >t.ocl; premium ($3 a share).........
Ticket, & freight b.tlai ces...........................
Leased roan lo r r . ntal...............................
Coup’ & div. u collect’d ...........................
Bills & accounts, i c udin? May pay-roll *
La Crosse, Trent ealeau & Prescott R .R .
C o ..................................................................
Total liabilities.

1865.
$852,779 57
5,931 00
134,787 56
735,755 84

1866.
1867.
$330 972 59 $1,380,755 61
140,544
175,072
87,114
772,702

22
91
91
49

l 78
110.201 -12

1C5,3 0 69
925,500 85

1868.
$80,579 £4
123,562
2 6.960
71,914
721,016

23
58
00
47

511,323 74
1,729,253 97 1,500,407 12

2,635,660 35 1,735,356 86

$131,033 £3
199,319 96

$139,229 63
286,826 50

49.646 04
109,196 85
414,658 85

23,710*43
248,698 79
5 .0,790 92

$212,565
576,805
19,246
13 ,935
25..0U3
321,566

Less the following assets :
T ick et & frei ht balances............. .
U ncol ected ‘'arnici’ S.................. ...
K xpreSs co m p a n ie s

____ . . . .

U. S Government
...............
C orporate & individuals..............
Cash on hau.i...................................
T o al assets.............................................
N ett floating debt.........................................




69
28

86

87
11
99

$268,799
416,387
2.853
207,966
20 *,945
409.140

06
62

66
07
47
51

$903,355 53 $1,229,255 27 $1,512,183 8U $1,509 092 39
$ 825,398 44

$277,150 85 $1,123.476 55 $ 226,264 69-

* 10 per cent, payable in stock.

250

Ch ic a g o a n d k o r t h w e s t e r n r a i l w a t .

[Novem ber,

STOCKS, BONDS, AC., OWNED BY COMPANY.

The “ securities on band ” given as an aggregate in the balance abstracts as
above, are enumerated at large in the following summary :
1st & 2d Mort. (Gal. & Chic. Union R R ) bds
1pt Mort. (Ced. Rpds. & Mo. R iv. R R ) bds.
1st Mort (Bel & Mad R K ) b d s......................
Sterling B ifg e C o’ s, s tock .................. . . .
Dub. & Sioux City R R Co’ s. pref. s t o c k ..,
Dub. & S ioux City RR C o’ s . 1st Mort. bd s.,
W aupaca and Weyauwega tow n bonds___
Propeller “ Favorite” s to c k .................... . .
Chicago & Mil. R R Co V stock ....................
Flagg Trust bonds, U. & N. W . C o .............
Consol. skg. f d bonds
“
“
........... .
Peninsula RR 1st m ort. b on d s....................
Equ pment bonds, C. & N. W . C o .............
Dubuque Southwestern RR Co.’ s b o n d s..,
Green Bay Transit Co.’ s stock and loans..
Northern Pacific R R subscription.............
St. Paul & Chicago R R 1st mort. b on d s...
“
“
“
loans.......................
Chicago and Milwaukee R R bonds.............
W inona <2fe St. Peter R R stock and bonds.
Total securities......................................

1865.
$
7,000
27,500
4,000

1866.
$
253,000
27,500

1867.
$
293,000

2,000

2,666

2,666

2.000

8,304

8,304

6,000
2,100

6,000
2,100

2,100

8,323

2,000

1868.
*
284,000

....

5,100
10,455
10,455
10,455
,274,350 1,274,350 2,018,200
45.000
50,00)
143,000
83,000
4,000
4,000
274,200
11,333

...

4,666
20,000

....

17,000
68,579
1,500
230,000

,1,340,723 1,908,709 2,629,593

629,179

The stock o f Vhe Chicago and Milwaukee Railroad Company, which figures
largely in t ’ e returns for 1865, ’66 and ’67, has been carried to construction and
so charged off.

There is still a fraction in other hands amounting to $153,400 ;

the total amount was $2,250,000. O f the Beloit and Madison Railroad Com­
pany’s stock but $10,200 remains in foreign hands. W ith these trifling excep­
tions the whole property o f these companies has been absorbed by the Chicago
and Northwestern Railroad Company.
FUNDED AND GUARANTEED DEBT.

The funded debt at the close o f the years 18 65-66, both inclusive, stood as fol­

lows :
1865.
I860.
$
$
Flagg Trust 8 p .c . b on d s........................................................ 245,000 245.000
Pref. ekg. fund 7 p. c. bonds (C. & N . W ., 193 m .) 1865 1,250,000 1,250,000
Funded coupon 7 p. c. bonds (C. & N .W ., 193 m .) 1883 756,000
756,0/0
Geu. 1st m ort. 7 p . c . bonds (C. & n . W ., l ‘ «3 m .) 1885 3,600,000 3,600,000
184,000
Appleton exten. 7 p. c. bonds (C. & N. W ., 23 m .) 1885 184,000
Green B. exten. 7 p. c. bonds (C. & N . W ., 26 m ) 1885 300,000
300,000
Equipment 7 p . c. bonds (C . & N. W .) 1874 ..................
270,482
320,000
1 st m oit. 7 p . c . bonds (Gal. & Chic. U . R R , 249 m.)
1882 ..................................................................................... 1,963,000 1,948,000
2d m ort. 7 p . c . bonds ( ~al. & C hic. U . R R , 249 m.)
1&75 ...................................................................................... 1,086,000 1,232,000
Mississippi R iver Bridge 7 p . c . bonds (Gal. & C hic. U.
R R. 249 m .) 1884................................................................
200,000
201,000
Elgin & State Line R R purchase 6 p . c. (Gal. & Chic.
189,000
U . R R , 249 m .) 1878........................................................... 189,000
Peninsula R R 1st mort. 7 p . c. bonds (712 m .) 1S98... 1,029,000 1 , 200,000
C onsol, skg fund 7 p . c . bonds (C. & N . W ., 800 m .)
1915...............................................................................
948,000
2,627,100
Equipm ent 10 per cent bonds, 1868-71...............................................

1S67.
*

200,000

1868.
$

1,250,000 1,249,000
756,000
755,000
3,600,000 3,595.' 00
184,000
1S4,COO
300,000
300,000
165,000
133,000
1,919,000 1,919,000
1,173,000

1,029,000

200,000

200,000

189,000
1,075,000

189,000
1,075,000

3,040,000 3,422,000
2 ,200,000 1,9*5,000

T otal funded d eb t...........................................................12,020,482 14,051,000 16,251,000 15,976,000

The

1 bonds guaranteed”

by the company are as follows :

l « t mortgage 7 per cent bonds (Chic. & Mil. R R, 45 m .) 1871........................................
3d
“
“
“
(
“
“
“
) 1870........................................
id
“
“
(M il. & Chic. R R , 40 m .) 1874........................................
3d
"
“
“
(
“
) 1838............................... .........
1 st
“
“
*
(C . & M . Railwav 85 m .) 1898..........................................
■•et
“
“
"
(Beloit & Mad. R R , 46 m.) 1888............................ . . . .
Bonds o f leased roads guaranteed by ccm pary.




$397,000
37,900
182,000
10.500
1,09S,000
372,000
$2,097,400

257

RETURN TO SPECIE PAYMENTS,

1868]

5IARKET PRICES OP COMPANY’ S STOCKS

Statement o f the lowest and highest prices o f the stocks o f the C hicaco and
Northwestern Railroad Company at N ew Y ork in each month from January 1,
1863, to the close o f the fiscal year ending May 31, 1868, being for one year before
and four years after consolidation.
COM M ON S T O C K .

1863-64.

Septem ber...............
O ctober....................
N ovem ber................
Decem ber................
J a n u a ry ..................
FeDruary..................
M a rch ......................
April.........................
M a y ........................

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

32 @ 3 8 #
32 @37%

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

43X@50.tf
43%@49
45 ^ @ 56

1864-65.
50 @60
48#@ 58
52%©57%
44%@54
34 @46
40%@47%
38 @44%
32 @ 4 0 #
32%@47
20 @34
21%(»35%
2 i# @ 3 3

1865-66.
23 @'27
26 @ 3 0 #
26 @30
27%@29%
2Stf@34%
31 @19%
34X@27.tf
28 @ 3 6 #
26 # @ 2 9 #
25#@ 27#
25%@29%
21 @29%

1867-68.
34%@44
43 @ U %
4 4# @ 5 0
38% @47
41% @48
47 @58%
55 @ 6 5 #
68% @ « 2 %
58,*: @ 6 1 #
63 @ 6 9 #
60 @61
63 @70

1866-67.
28%@31%
30 @37
35%@37%
34 @37%
38 @60%
39%@6*%
43 @ 5 5 #
33 @ 4 o #
34%@S9tf
32tf@16
£9%@36
31%@36%

23 @ 3 9 #
20 @eo
28%@62%
34%©70
Year.................. ............. 27%@83
Jane, 1868, 65%@72; July, 73@ 84% ; August, 80@ S3X ; September, 81@ 90% ; and October, to
16tb, 86% @9I% .
PREFERRED

J a n e........................................
J u ly .........................................
A ugust.....................................
Septem ber.............................
O ctober...................................
N ovem b er.............................
Decem ber...............................
Jynuary .............................
F eb ru a ry............................. .
M arch.....................................
A p r il.......................................
A a y .........................................

1863-64.
@ ....
@ ....
.@ ....
,@

61
65
71
70
72

...

© ....
@61
@65
@87
@79
@94%

STOCK.

1864-65.
86 @ 9 4 #
84 @93
85%@91%
77 @83%
67%'@St
75%@85%
6 9% @ '8 %
61% @71%
61%@fi7%
48 @64
48 @67
52%@C3%

1865-66.
53 @57
56#@ 66
5S#@' 4
60% @64
62% @69
64#@ 69
61 @ 6 5 #
53%@62%
53%@5h%
52# @ 5 7
53% @59%
56 @ 6 1 #

1867-68.
58%@64%
65 @7-1%
67% @71%
63 @71%
64 # @ 7 0
62# @ 6 7 #
66%@71%
7 ’%@J6
72 7 5 #
72#@7t>#
68 @ 7 6 #
75 @SC%

1866-67.
58 ©61%
59% @ 66%
66 @G8 #
65#@ 72#
72# @81
69#@ 32
68# @ 8 4 #
58 @83
63%@: 9%
59%@65%
56# @ 6 5 #
56% @63%

48 @ 9 4 #
52#@ 69
56%@S4%
58%@80%
Year.................................
June, 1868, 7 7 # @ 8 4 # ; July, 78% @ 84% ; August, 79%@83% ; September, 83%@91% ; and
October, to 16th, 8 7 # @ y 7 # .

Forn er notices of this company will be found in the M a g a z i n e s o f December ,
1865, and September, 1867.

RETURN TO SPECIE PAYMENTS.
BY

C. H . DERBY.

A t th e c lo s e o f th e w ar, th ere w ere serious im pedim ents in th e w ay o f
a

return to s p e c ie :— F irst, a floa tin g d eb t o f at least fifteen hundred

m illion s, w ith large arrears du e to arm y, navy and contractors.

A vast

paper currency in th e shape o f greenbacks, fractional notes and com pou n d
notes and seven -thirties w ith o p tion s in

favor o f creditor.

Interest o f

all the d eb t was fun ded, b id d in g fair to e x ceed on e hundred and eigh ty
m illions.

A large a rm y in th e field to a la rg e n avy at sea, daily in cu r­

rin g great expense and con tra cts for ships, rifles, can non , cloth and m ili­
ta ry stores for a m illion or m ore o f m en in course o f execu tion .

A t this time our exports were below our imports and the South




253

r etu rn " to

s p e c ie

paym ents.

[ November

exhausted by a lo n g war, required la rge supplies from abroad.

,

T o m eet

pressing wants it was n ecessary to raise a thousand m illions in the fiscal
yea r betw een Jun e 1 8 6 5 and June

1 8 6 6 , and this was effected bv the

N orthern and W estern States, w ith little or n o aid from the S outhern
h a lf o f th e R e p u b lic.

It was found too that the war had swept away more than a third of
the live stock of the South, and made some inroads upon that of the Northi
and that it had nearly arrested the growth o f our great crops of cotton,
rice and sugar.
The greenbacks were issued as a war measure, but at the close o f the
war, it was not easy to resume in the face of all these difficulties. More
than three years have now elapsed since the war ended, and these diffi­
culties have been gradually surmounted. By the continuance for
three years of the most productive taxes, by the growth of customs,
by the sale of surplus ships and stores and conversion o f gold into cur­
rency, we have extinguished the compound notes, reduced the green­
backs and brought our debt down below twenty-five hundred millions to
the surprise of the nation, which feared it would equal that of England.
W e were wiser than she was. She issued her bonds at three per cent in
consols, below sixty percent upon their face. She floated them in depieciated currency, and thus made her debt forty-two hundred millions of
dollars. W e sent our bonds out at par in a similar currency and floated
them at higher, but temporary interest and now we reap the advantage.
W e have reduced interest to $120 million in November and shall soon
bring it down to $100 millions, and probably soon meet it with our taxes
on foreign and domestic liquors and tobacco alone.
O ur oth er expenses since w e p a id the am ou nt du e for bou n ties one o f
the w ar expenses and for A la sk a , are d ow n to $ 1 2 0 m illion s and m ay be
further reduced.
O ur
im p orts

exports
and

o f last y ea r $ 3 5 5 m illion s on g o ld values

w ith an increased

shipm en t o f cotton at an

e x ceed

our

advance o f

tw enty-five per cen t on last years prices, w e shall p rob a b ly carry up our
exp orts to $ 4 0 0 m illions in g o ld values and ou r revenue from custom s
a b o v e $ 1 8 0 m illions.

Since October our revenue has been running at four hundred millions,
and our expenses at two hundred and forty millions of dollars, bearing
a large surplus for absorption of debt and future reductions. Mr. Delinar
is evidently at sea, when he ceases to collect the returns o f merchandize
and goes into finance. H e has failed to see that our revenue checked by
the fall of cotton in January and February has been increasing ever since
while our outgoes have been diminishing, and we are encouraged to
reduce our foreign spirits, wines, tobacco, tea, wool, carpets, seed, steel




1868]

RETURN TO SPECIE PAYMENTS.

259

spices and print cloths on which our duties now range from one hundred
to three hundred per cent both by the state o f our revenue and the bene­
ficial effect o f prior reductions. Intelligent manufacturers ask for no duties
on manufactures above thirty-five per cent, and our present duties on gro­
ceries alone are yielding us more revenue than all our customs before the
war.
Doubtless the freedman is using more coffee, tea and sugar and foreign
fabrics than the slave, where lie lived on his pittance o f meal and fish,
and wore one suit o f fustian.
W e have too made important changes in the debt. The floating debt,
if we except 8360 millions o f currency, and a few receipts for specie and
three per cent bonds required by the banks, has nearly disappeared. For
twenty years from the date of our five-twenties we have after the first
five years the option to pay the principal at our pleasure. W e have
made good use of the premium on gold by sales, and still better by
tempting the holders o f the Seven-thirties to take six per cent in gold»
drawing a premium o f 40 per cent and equivalent to eight and 4 lOtlis
per cent in paper, and now our poliey is to provide the same money
for the people that we give to the creditor o f the nation.
W hile there were strong, and, as it seems to us, conclusive reasons
for the issue of greenbacks to float our debt, there is good reason to
believe we should have issued less. Less would have sufficed, and we
could have filled any vacuum with compound interest notes at low inter­
est, which would as the interest accumulated, have gradually retired from
circulation and been self-funding. I f we compare our issue of Seventhirties with that of compound notes for the same term o f three years, it
is obvious that the last saved ten per cent or more to the nation.
They quietly withdrew from circulation and were funded at par. The
Seven-thirties called for nearly four per cent more interest, neariy one
per cent interest on interest, and under our option called also for Fivetwenties, worth a premium of five to ten per cent. They have read us
an important lesson on finance, and point out a very easy and simple
mode o f disposing of our greenbacks. Our Sub-Treasury received monthly
in greenbacks about fifteen millions o f dollars. Let us cancel them, as
they come in, and replace them as we pay out, with an equal amount
of compound notes at three per cent for three years convertible at any
time with their running interest into long four per cent consols, and
whenever and wherever the nation shall require new banks, let us make
these bonds the basis o f circulation, and meanwhile transfer to these com ­
pounds, the property o f legal tenders at their par value. In twenty-four
months the whole greenback currency would disappear.
B at who, it will be asked will pay the interest on the compounds,




260

return

of

s p e c ie

paym en ts.

[November,

which for three years, will average about seven million yearly. This can
easily be met by a tax of one per cent on bank circulation and half per
cent on bank deposits, A nd after that, the four per cents will become a
part of our funded debt at a very low rate of interest, while our surplus
revenue may be applied to the payment of bonds, drawing six per cent.
W ith the greenbacks, which are but broken promises o f the nation to
pay gold, which have no intrinsic value, the last impediment to a return
to specie will vanish, and long before they are gone we, by an almost
imperceptible process and guided by an elastic cable shal.l be drawn to
specie payments.
The greenback now commands seventy-six cents in specie— an advance
o f one per cent' only a month, a change to which our traders are
habituated, carries it to gold in two years, and a movement accelerated
to two per cent a month achieves the same result in a year.
It has been urged, in a recent article in this M a g a z in e , that we have
now a population of forty millions, and property worth twenty thousand
millions, and require a circulation of twenty dollars per head, or of four
pei- cent on our property, and the writer seemed inclined to treat our
bank deposits as a part of the currency, and thus to almost double our
real circulation.
As respects our population, our coming census fifteen months hence,
will doubtless give us forty millions. A s respects our wealth w-e prob­
ably consumed during the war, nearly a fifth of our northern cattle,
horses and swine, and more than two;fifths o f this description o f property
in the South. But we have shown great recuperative power, since the
war, and in the last three years o f peace have, in the North, already more
than made good our share o f these losses, and at the South are fast retriev­
ing them.
The rice of the South at nine cents produces nearly as much as the
rice crop o f 1859 at three cents. The cotton and rice together at eighteen
cents in gold for the one, and seven in gold for the other, yield more this
year than all the cotton, sugar and rice of the South yielded in 1860. Our
sheep have increased seventy per cent, and there can be little doubt that
the census of 1870 will show a growth of at least twenty-five per cent on
the value of our farms, stocks railways and other property. And our
debt, large as at first glance it may seem, when compared with the afflu­
ence of our resources, or when we compare our interest and expenses with
the growing income o f our people, at least thirty times larger, becomes
insignificant.
A s respects our currency, it seems to us that bank deposits cannot be
treated as circulation, but should be regarded as hoarded wealth. If they
do constitute circulation one might triple them and then return to gold,




1868]

RETURN TO SPECIE PAYMENTS.

261

i f the United Kingdom of Great Britain and Ireland is any criterion for
this country—
The British and Irish Bank Deposits are.........................................
'the paper circulation................................................................
The gold circulation....................................................................

j l , 500,000,000
225,100,000
375.00 ',000

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

$2,100,000,000

And there the bank deposits exert no deliterious influence, and gold is
displacing paper and accumulating in the Bank of England, as it is also
in the Bank of France. The two institutions having idle in their vaults
more than three hundred and fifty millions. I f the United Kingdom can
maintain specie payments with such deposits, and a circulation of two
hundred and twenty-five millions, and keep afloat many public exchequer
bills and private sixty day bills that pass as currency, we with a third
more population can easily float more than three hundred millions in
bills, and a large amount in long compounds. The above amount of
deposits is reliable, as it is taken from the recent valuable treatise of
Patterson on British Banking and Commerce.
The measure proposed would not be onerous to commerce, because the
compounds laid aside as a reserve will always be ready to perform the
office of legal tenders just as the greenback now is, and might fulfil the
requirements of the law, and be used either as a legal tender, or the
means of borrowing them in any emergency.
It is true that the Internal Revenue mifrht not all be paid in greenbacks,
but bank notes and compounds could be easily exchanged for them as
they would be even more available to the public. Let us assume that we
require eight hundred millions of currency next year, and have three hun­
dred millions in bank notes and two hundred in compound notes and
greenbacks, how shall we command three hundred millions in gold, W e
find at once an hundred and twenty millions in the banks and Sub-Treas­
ury. There is at least an hundred millions hoarded, or two dollars and a
half for each inhabitant, and we may easily reserve one hundred millions
more in the next two years from the products of our mines, from our
imports, and from specie introduced by emigrants and travellers.
Ross Brown, our new minister to China, computes the annual product
of our mines on both sides of the Rocky Mountains and the Sierra Nevada
to be.............................................................................................................. $80,00",000
Three hundred thousand emigrants at an average of $80 each, being.. . . 24,"00,000
Our imports last year w ere......................................................................... 13,000,000
Total...................................................................................................... $117,000,000

While returning by easy 6teps to specie we shall not require more than
sixty millions a year from exports, and can easily reserve fifty-seven
millions annually*-




262

SECRET ISSUES OF STOCKS.

[November,

But if tliese supplies do Dot suffice, it would be very easy for our Secre­
tary of tlie Treasury to borrow, in France or England, a hundred millions
in gold, at 3 per cent, for six and twelve months, on the pledge of $150
of our long four per cent bonds, and this would give us all that would be
required, and as our bonds appreciated by our return towards specie a
large profit, greatly exceeding interest, might be realized from their sale.
The French Government have recently borrowed for five months at onehalf of one per cent a year, and for a year at one per cent. The present
time is propitious for a return to specie— the nation is stronger than it
thinks itself. A ll our statesmen who study its resources are surprised by
its recuperative powers and the affluence of its resources. It should no
longer compel its people to measure their property by broken promises
and fluctuating standards, but return at once to gold and adopt with the
European standard uniform coins, weights and measures, and thus resume
its proud position among the nations.

SECRET ISSUES OF STOCKS.
The equanimity of Wall street has been disturbed by the discovery that
the Erie Railroad Company has made further issues of stock, secretly
and without authorization from the stockholders. It is now somewhat
over two years since this Company placed over $5,000,000 of its stock in
the hands of one of its directors, as collateral for a loan, upon conditions
which enabled him to put the stock in circulation ; that issue has become
permanent. Last spring, a further issue of $10,000,000 o f convertible
bonds was made, which were promptly exchanged for stock ; and now
we have an official admission that, within the last few weeks, $10,000,000
more of these bonds have been sold, o f which $5,000,000 has been already
converted into stock, while the remaining $5,000,000 is to be exchanged
for shares at an early day. W e have thus an increase o f $20,000,000 in
the stock of one company within one year, without a word of previous
intimation to the stockholders.
It is foreign to our purpose to inquire particularly into the purposes of
these new issues; although it may serve to point the moral of our
remarks to state incidentally that the New York Stock Exchange, feeling
that current rumors affected seriously the security of dealings in the stock,
appointed a deputation to wait upon the President of the company for
explanations, the result of which may be thus stated. The President)
after admitting the issue of $10,000,000 of new bonds, as before stated’
intimated that the negotiation had been made for the purpose of pro­
viding funds to retire $4,000,000 o f acceptances given to the Boston?




1868]

SECRET ISSUES OP STOCKS.

263

Hartford and Erie Railroad Company, against $5,000,000 of bonds taken
at 80 from that corporation, and further to provide means for the pur­
chase of steel rails, to lay an additional rail, adapting the line for either
broad or narrow guage traffic.
O f the $7,200,000 o f money obtained
on the sale of bonds in the spring, $3,000,000, according "to the same
authority, was used upon construction purposes; while, as to the dis­
posal of the remaining $4,200,000, nothing was elicited beyond the fact
that a large amount was spent, in “ settling” with parties who lately
surrendered controlling positions in the affairs o f the company to the
piesent incumbents. So that, for the issue of $20,000,000 of stock, there
is nothingto show beyond $5,000,000 o f the bonds of another corporation,
the interest o f which is guaranteed by the Erie Company, the laying
o f a new line of rails, some minor improvements o f no great consequence,
and ordinary repairs, which should have been covered by the current
earnings.
These facts sufficiently illustrate the grave abuses incident to directors
possessing unchecked power to make issues of stock; and illustrations
might easily be multiplied a d lib itu m , by reference to other companies,
the action of whose directors differs from this case only in the extent of
their issues. It is not surprising that these developments should have
produced in W all street a feeling bordering on consternation, nor that a
more or less general distrust of stocks should have followed. If directors
are to be allowed to issue new shares when they please and upon any
pretence they may set up, there is no longer any security either to stock­
holders or to parties advancing money upon stock collaterals. There is, in
fact, an end to confidence in these securities ; and stock enterprises must
henceforth stand at a discount. Nearly all our large undertakings
are accomplished through a combination of subscribers, whose proprietory
interest is represented by the scrip or stock they severally hold. I f the
number o f shares may be increased at the will o f the directDrs, and the
new stock may be sold at any price the managers may choose to accept,
it is very clear that the stockholders are constantly liable to have their
interest in the property r^ouoed ; and if, moreover, these issues may be
made secretly, so that the shareholder knows nothing of them until the
shares are marketed, he has no chance whatever to protect himself against
the consequent depreciation in the value o f his stock and is doubly
injured. The effect of such uncertainties, if continued, must be to dis­
courage corporate undertakings, and to limit our progress to what may
be accomplished by individual enterprise, a result which would be an
unmitigated misfortune.
This license to directors further tends to depreciate the value of share
investments by rendering stocks unreliable as collaterals.
Lenders are




264

SECRET ISSUES OF STOCKS.

[November,

liable at any moment to find that stocks upon which they have advanced
money have become suddenly depreciated by new issues. T o say that
they can protect themselves by calling for an increased margin from the
borrower in cases o f depreciation, is to assume that the borrower would
be able or disposed to keep up his margin under the uncertainty or the
panic attending the revelation o f the new issue, an assumption which
cannot be allowed. A succession o f such developments as we have wit­
nessed now in the case o f the Erie Company, and recently in connection
with other companies, can have no other result than to make lenders
less disposed to advance money upon this class of securities, and to induce
them to demand larger margins generally upon such loans.
Perhaps, as
far as respects W all street speculations, this might be regarded as a resutl
not without obvious compensations; but there are others who have to
borrow upon stocks besides speculators, and to such the consequence
would be a serious injury.
The possession o f this power of secret issue acts as a demoralizing tempt­
ation to directors. Issues of new stock always produce more or less
fluctuation in the value o f the shares ; and the fluctuations afford an
opportunity for highly profitable speculation to those in the secret. For
illustration, let a suppositious case be taken in connection with the new
issues by the Erie Company. The directors issued $10,000,000 of bonds
say at 50, with the understanding that the bonds should be early
converted into stock and placed secretly on the market. They were
aware that the probable result, when the operation became known, would
be to put down the price 10 to 15 per cent. In anticipation of this decline
they sell, say, 100,000 shares for future delivery, and then, announcing
the fact of the new issue, buy up the stock at the decline to make their
deliveries. The whole operation would make them a profit o f $1,000,000
to $1,500,000— so much taken out of the pockets o f the deluded public
by official secresy. Let it be further supposed that, say, $5,000,000 o
new stock were issued for some purely fictitious purpose, and that the
directors should subsequently profess to find that the company less needed
the funds than was expected, and that consequently the the stock could be
bought in and cancelled. Let it further be supposed that the stock thus
sold were quietly marketed at 50, and that the announcement of the new
issue, concurrently with depreciatory representations and street manipula.
tion o f the stock, were to put down the price to 40. In this case, there
is a margin of 10 per cent profit on “ short” sales in anticipation o f the
decline, and an equal profit upon purchases of $5,000,000 of stock to be
made at the decline, with a view to its ultimate return to the company
at the price at which it was issued; making a profit on the combined
elling and buying accounts o f $1,000,000. Indeed, the directors of this




1868 ]

PACIFIC RAILROADS

AND RAILROAD PROGRESS.

265

company can at any time throw any amount o f new stock upon the market
for their own speculative purposes, buying it back again at the consequent
decline, and then cancelling an equal amount o f shares. W e express no
opinion as to whether operations similar to these are now being carried on
by the Company in question ; certain, however, it is that these things can
be done ; and the recent history o f the Erie management affords no guar­
antee that those who usually control its affairs are above such expedients.
To say the least, the fact of the administrators of the affairs o f a company
representing $75,000,000 of capital possessing such sweeping powers has a
demoralizing tendency which can hardly fail sooner or later to corrupt
the direction. Such facilities for speculation tend to make the manage­
ment a mere means to the most reckless operations, and should not be
allowed longer to remain undisturbed by the Legislature.
The evil is by no means one hopeless o f remedy. A ll scandals upon
the reputation of our corporations can be removed by the State Legisla­
tures enacting: 1. That directors shall make no new issues of stock except
by and with the consent o f two-thirds of the stockholders in interest.
2. That no new shares shall be issued without first offering them to the
existing shareholders, and that all issues shall he made openly and after
due notice. 3. That all stock companies shall keep a record of the
amount of their stock outstanding, in the office o f some well-known
financial institution, at all times open to the inspection of the sharehold­
ers, or of parties holding the shares as collateral for loans. 4. That
these requirements shall apply to stock issued in the way of dividends as well
as for other purposes; and, 5. A n y violation o f these provisions should
be constituted a criminal offense, subject to punishment and fine.

THE PACIFIC RAILROADS AND RAILROAD PROGRESS.
The great Continental line of railroad which is to connect our Atlantic
and Pacific borders, and develope the interior in an ever increasing ratio,
is now approaching completion. The latest official reports inform us that
the Union Pacific has reached 880 miles from Omaha, the initial point
on the Missouri R iver; and that the Central Pacific has reached a point
350 miles from Sacramento on the river of the same name, the western
terminus in California. The total length o f the two roads thus approach­
ing union will be 1,657 miles and hence only 427 miles remain to be
constructed to finish the work contemplated.
The mission of this highway is by no means of a purely domestic
character. It is to become the transit line of the commerce between
the opposite sides of the old world. B u t the benefits to the territory
through wl icb it passes are already apparent. A few years ago the country




266

p a c if ic

r a il r o a d s

and

r a il r o a d

progress.

[November

traversed was scarcely a home for civilized man. It is now far on the road
to prosperity, and settlements have been made and new States and terri­
tories marked out with unprecedented rapidity. It is true that special
natural inducements have operated largely to effect this result. But how
much more rapid has the development been since these railroads were com­
menced. The miners of Colorado, Idaho, Nevada, &c., were virtually
isolated from the world o f commerce, and dependent for intermittent com­
munication on laborious travel over mountain and plain. N ow their labor
is made doubly remunerative by the facilities given to travel and transpor­
tation.
When these enterprises were commenced no railroad from the East
had reached the banks of the Missouri River, and the only means the Union
Company possessed o f getting forward material and supplies was by way
o f that river. This was a slow and toilsome process, but it showed the
necessity for the immediate construction o f connecting lines, and the
Chicago Division of the Chicago and Northwestern Railroad was extem­
porized, and since then a line o f railroad from St. Louis to Omaha has been
completed. Several other railroads in Iowa and Missouri, pointing to
Omaha, are also in progress, so that the former deficiency will soon be
fully supplied.
Nor was it alone in the States between the Mississippi and Missour1
that the construction of the Pacific railroads made further improvements
necessary. From the Mississippi to the Atlantic coast there was not a
single line on the shortest route. To remedy this defect was a necessity ;
while to secure a share in the commerce that is to be developed by the
Pacific railroads has been the aim o f all the railroad companies whose
lines transverse this section, and the great cities o f the Atlantic seaboard
have been preparing for the commercial advantages to result from this
interior enterprise.
That the greatest improvement should have been made in the new
States west of New Y ork, Pennsylvania and Maryland is not surprising.
To these population has been directed in the greatest measure, and in
them the defects in system were most notable. In the older Slates, east
of that line, the system was more complete, but even in these extensive
improvements have been made and are being made.
The result of much o f this effort may be stated as follows: In 1865)
the first 40 miles of the Union Pacific Railroad was laid ; in 1866 there
were constructed 265 miles; in 1867 a further length o f 2 45 miles,
and to date in 1868 there has been constructed 330 miles, or, in four
years, 880 miles. The Central Pacific, notwithstanding the intervention
of the Sierra Nevada, has progressed with equal rapidity ; and the Uidon
Pacific (E. D.) is now in operation from Kansas City to Sheridan, 405




1808]

PACIFIC RAILROADS

AND RAILROAD PROGRESS.

267

miles. Railroad construction in the States east of the Mississippi and west
of Pennsylvania has been during this period as follows :
1 -w a ...................................................
M issou ri............................................
M nnesota .....................................
Wis»cm i n ........................................
I l l i n o i s .............................................
M ichigan............................................
I d iai.a .............................................
O h io..................................................

.—Miles of Road.— ,
1864.
1868.
Inor.
800
1 680
830
020
1,200
2b<)
160
560
400
1.050
1,200
150
3, 00
3,400
30
870
1,260
£90
2,200
2,610
400
8,200
3,310
110

T o t a l.......................................... 12.300

15,110

,---------------- Cost o f Loads.------------------,
1864.
1868.
Inc ease.
$26,000,000 $57,f>00,000 $31.5 0,000
47,"00,000
56.000,000
9,000,000
5,<00,000
16,800 <00
11,80 ,000
40.000,000
48 000.000
8,000.000
117,500,«'00 15 .500.000
40,0»'0,000
32,00u,000
45,000.000
13,000,000
71,300,000 101,500.» 00
33, 200,000
1 21 000,000 167,500 00
46.50o,000

2,S90 $459,800,000 $652,8 0,000 $193,000,000

Thus in these eight States in four years nearly 3,000 miles of new
railr ad have been laid and millions of dollars expended, not only on
these, but also in improving previously existing lines. The total increase
in cost has been nearly $200,000,000, or about $15 per head of the pop
ulation.
Among the principal railroads in progress or constructed in the four
years referred to the following are the most important:
In Iowa: the Iowa division o f the Chicago an I North Western, the
Iowa division of the C icago, Rock Island and Pacific, the Burlington
and Missouri River, the Sioux City and Pacific, and the St. Joseph and
Council Bluffs. By the time that the Pacific railroad is completed, the
Rock Island and Burlington lines will have reached the Missouri.
In Missouri: the Pacific o f Missouri, and the extensions o f the North
Missouri towards Iowa and the Missouri River.
The Southern Pacific
is also being extended southwest, and the St. Louis and lion Mountain
south, the latter to a connection with the Southern railroads, at Columhus. Ky. The St. Joseph and Council Bluffs Railroad has also been
completed to a connection with the Iowa railroad of the same name,
giving St. Louis an indirect route to Omaha. Several other roads are
projected to connect with the Union Pacific Railroads.
In Minnesota: the Milwaukee and St. Paul, the Winona and St. Peter,
and tne Minnesota Valley. Considerable progress has also been made
in the first division of the Pacific Railroad and its branch north to
W atab has been opened through.
In Illinois: the St. Louis, Jacksonville and Chicago, which gives another
connection to the Illinois Central. The Rockford, Rock Bland and St.
Louis is now in course o f construction, chiefly as a mineral road, and
designed to supply coal to railroads, & c. The St. Louis, Vandalia and
Terre Haute, and the Cairo, Mound City and Vincennes are also in prog­
ress, with a view to their early completion.
In Michigan : the Jackson, Lansing and Saginaw, and the Flint and
Pere Marquette are the principal new constructions. There is also being
constructed a more direct line between Port Huron and Chicago, known




268

PACIFIC RAILROADS

AND RAILROAD PROGRESS.

[November

as the Air-line. The Grand River Valley Railroad is approaching com­
pletion.
In Indiana: the Columbus, Chicago and Indiana Central Railroad
has completed a line from Union City to Loganport and consolidated
into itself the Chicago and Great Eastern, the Indiana Central and the
Logansport and Burlington. There is also being built a line from Indi­
anapolis to Vincennes to connect with the road to Mound City and
Cairo ; and several other lines are projected.
And in O h io: several short lines, chiefly auxiliaries of existing lines.
In this State several important consolidations have been effected.
Further east the principal developments have been rather improvements
than new works. In New York the Erie is having a third rail laid to
accommodate the narrow cars. The Hudson River has completed its
second track, & c. The lines in progress from the Hudson have chiefly
a northwestern direction, and will connect with the Central, the M id­
land being the most important. In a few years the Boston, Hartford and
Erie will continue the Erie Railway to Boston. In the city of New York
the depot and warehouse accommodation has been largely extended. In
Pennsylvania, especially in the eastern portion, the extension of roads is
being rapidly carried on, the objective points being Easton, on the Dela­
ware, and New York city. In the southwest of the Siate the construction
of the Pittsburg and Connellsville railroad to a connection with the Bal­
timore and Ohio is being carried on actively. New Jersey has also made
extensive improvements in its railroads and accommodations for an increas­
ing traffic. The works at Hoboken, Jersey City, Comtnunipaw and Eliza­
beth port are among the most extensive in the United States.
In the
Delaware peninsula railroad building is very active; and Maryland is con­
necting Baltimore more firmly with both East and West.
This activity in railroad construction and improvement is not local,
but is everywhere apparent. It will bring many parts of the country,
as yet isolated from markets, into connection with the centres of com­
merce, and tend largely to the development o f national industry. It is
the precursor of a vast revolution in the relations of distant parts o f
the country one with the other, and will result in a harmony of inter­
ests to which we have hitherto been strangers. In the South the same
spirit of enterprise which has prompted the Northern States to action
is fully roused, and in several instances where private capital has been
wanting, the States have come to the rescue and supplied the means
required Tennessee, South Carolina and Alabama are conspicuous for the
aid they have voted to great enterprises. In a few weeks the Selma, Rome
and Dalton Railroad will be completed, and give us a more direct route
to Mobile and New Orleans. So in every direction the maps are now
networked with lines o f road which the future is to realize.




1868]

TIIE PRESIDENTIAL ELECTION.

269

TIIE PRESIDENTIAL ELECTION.
When the king o f France died, under the old regime, it was customary
for the chief chamberlain of the palace in which the event took place
to signify it to the assembled courtiers, in the ante-room o f the state
chamber, by throwing open a door and crying o u t: il The king is dead !
Long live the king 1” This quaint ceremony symbolized, tersely enough,
the fiction, which, after all, was no fiction, of the undying nature o f the
chief executive office. The monarch was mortal. The monarchy was
immortal.
Something of the feeling expressed in this antique royal rite pervades
the people of all countries in which the people have some recognized con­
nexion with their system of government more deep and vital than that
of mere obedience to a superior force handled Toy superior cunning. It
certainly pervades the people o f the United States, and pervading them,
it ballasts with a substratum of rational composure the ship o f state, in the
height of every political tempest. N o matter how hot and fierce may le
the contest of parties for power, the great masses of the people feel that,
end their contest as it may, the substantial framework of the Republic will
endure. One President may disappear into private life. Anofher may
emerge into the trying and dazzling daylight of power; and the country
may suffer something or gain something, in the matter of the direction o f
its public affairs, by the change, but the people never believe that the
suffering will be fatal or the gain vital. The politicians, o f cour e, assert
the contrary, during the heat of the canvass; the people, for the time
of the canvass, act as if they felt the assertions of the politicians to be
true, for there is a kind of moral fever engendered by the excitement
o f a political contest. But the canvass once over, the peeple relapse
into their normal confidence in their institutions. There is a side o f
danger, of course, as well as a side of safety in this rela'ion o f the
people to their politics. It is certainly possible that the institutions of
a republic as well as the institutions of a monarchy may be impeiiled
by the over weening confidence of the nation in their stability. It is
certainly possible that the change from one President to another may at
some given time, and under some particular condition of circumstances,
lead to profound and permanent modifications in the national constitution.
But, on the whole, and taking the average o f what we may call a nation’s
chance, especially in the case of a nation so made up and so situated as
our own, it is probably true that we gain in respect to impulse and elas­
ticity more than we lose in respect to prudence and caution from this
temperament of the people and o f the times. Such, at least, is the general
conviction of thinking men among us, as shown in the turn which pri-




4

2V0

THE PRESIDENTIAL ELECTION.

[.November,

vate affairs commonly take after the termination o f a great public contest.
This is commonly a favoiable turn, and that it is so is universally
admitted to flow from the general feeling that a political decision, simply
because it is a decision, remits the nation to a course of probable safety.
The election o f General Grant has not yet, it is true, been followed by the
usual indications at the great financial centres of the country which mark
the recognition by the popular sense of a decision as an advantage. This
may be accounted for, however, mainly by the peculiar and unusual con­
dition o f our money market the past two weeks, and partly, no doubt, by
the singular and abnormal condition into which the business interests,
not only of the United States but of Europe, have been brought during
the last three years; on this side o f the Atlantic by the unsettled rela­
tions of the lately rebellious States to the rest of the country, and, on the
other side of the Atlantic, by the vexatious and incomprehensible relations
o f the two great military powers, Germany and France, with each other
and with the rest o f Europe. It is at least certain that the election of
General Grant, if it has failed to work the usual miracle of reviving com ­
mercial confidence, has not still further depressed it. On the contrary,
it may be assumed from the antecedents o f this election, and from the
peculiar political situation of the newly chosen Chief Magistrate, that so
far as the fact of his election influences commercial confidence at all, the
influence will be beneficial.
For nothing is more clear to the impartial observer than this: that
General Grant’s election, no matter what may have been the motive
of some of his supporters in urging it, is a triumph of the conservatism
and honesty of our people. His nomination was made in response to the
desire so widely expressed for peace and rest from strife. He became
the chosen leader o f a great party, not because he was a politician, but
because he was not a politician; and be is trusted now because it is
believed ho will not seek mere party ends but the country’s highest good.
What the nation most needs now is repose. It needs to be assured
that peace is a reality, and that peace will be as permanent as it is real.
It needs to be satisfied that passion will hereafter play a smaller, and reason
a greater part in the influence of parties upon public policy. It needs to
see a harmony based on mutual respect, existing and efficient between the
executive and the legislative branches of the general government. All of
these things which the country so greatly needed are made not unreason­
able expectations by the conditions under which General Grant has been
chosen, and by the popular understanding of General Grant’s own character
and purposes.
In the light o f such anticipations the country will look forward to
the selection by General Grant, of advisers who will represent not any




1868]

PROSPECTS OP THE COTTON TRADE.

271

sectional feelings, passions or theories, but the broad and national and
patriotic spirit of the substantial people of the republic. From an adminis­
tration constituted, as it would certainly seem to be more practicable for
General Grant than it would have have for any other man now before the
country to constitute an administration, the country will expect a policy
of financial retrenchment and prudence, a conciliatory and yet a resolute
control of all internal questions justly appertaining to the domain o f the
federal authority, and a judicious remission o f many of the matters which
have of late most perplexed our public policy, and most embittered the
passions of party, to the unobtrusive and smoothly working system o f local
independence, combined with general responsibility, which was originally
the most distinctive feature, and is still the strongest anchor of American
“ institutions.

PROSPECTS OE THE COTTON ;TRADE.
Cotton has well nigh gained its former importance as the great com­
mercial crop of the country.
The exportable surplus of the staple may
now be estimated as worth $125,000,000 in gold ; which is near its average
value between 1855 and 1860. The growing magnitude o f this branch
o f the export trade renders it especially important to ascertain as nearly
as possible what are the prospects as to the value and the movements of
this particular staple. The premium on gold is very directly influenced
by the supply of cotton bills; and the exports o f other products are
materially affected by the premium on gold ; so that, in an important sense,
the cotton movement may be said to control our whole export trade. The
supply and demand, however, have during the late war been subject to so
many fluctuations, that it is difficult to form satisfactory estimates o f the
cause of things a few months ahead; each successive year, however,
the movements are assuming more regularity, while they afford an accu­
mulation of new data for our guidance.
The general tenor of reports has, during late weeks, become more favor­
able, so that now the prevailing anticipation in this market is that the
Southern crop will exceed that o f last year. The injury by rains and
the worm has proved less serious than was at one time expected, while
the picking season has been very favorable; so that if the election and
after-election excitement does not interfere with the work of the freedmen
it is now believed among the better informed that an increase o f about
200,000 bales upon the last crop may be relied upon with considerable
confidence, which would give us a total of say 2,700,000 bales. The fact
o f the arrivals of cotton at the ports, since September 1, having been over
90 per cent in excess o f those of last year is an indication o f this improve.




272

PROSPECTS OF THE COTTON TRADE.

[November,

nient in the supply; and yet only partially so, for the crop this year is
about three weeks earlier than last year, while in the fall of 1867 trade at
the Southern ports was checked by the prevalence o f yellow fever. The
prospects of the supply in other cotton growing countries appear to be on
the whole satisfactory. There were some reports earlier in the season of
injury from the rains to the plant in India, but the later advices are all
favorable; and it is inferred from the fact that the bulk of the last crop
was marketed when prices were high that the area planted will be large,
though we do not look for any material increase from that quarter. From
Egypt, however, the supply is estimated at about 400,000 bales, as against
250,000 bales last year, while the reports from Brazil are all favorable,
the high prices obtained for the last crop having induced, it is believed,
some increase of planting. It would seem, then, that the combined supply
in America, Brazil, and Egypt may exceed that of last year by say 350,000
bales of 450 lbs. each, which is equal to an addition to the world’s con­
sumption o f about 7,000 bales per week. It is not to be assumed,
however, that the whole o f this additional supply will reach Europe. Our
own manufacturers had reduced their stocks to an unprecedentedly low
point before the crop began to arrive, and not only will they have to com­
pensate for this deficiency in supply on hand, but they are likely to require
an increased amount for actual consumption, to meet the extra demand
naturally growing out o f an improved condition o f trade throughout the
country generally, and especially in the Southern States. For this reason,
Liverpool is not likely to be much benefited by the enlarged Southern
crop.
The present condition of stocks in Europe and of the supply afloat
combined does not in the total differ very materially from the same period
of last year, as will be seen from the following comparison:
IN

STO C K S A N D

AFLOAT.

s? o c k .................................
A flo n t.................................

1868,
bales.
426,C00
284,0UU

1867
bales.
571,000
226,0C0

S tock...................................
A flo a t .................................

89,038
134,914

118,343
74,179

50,429
29,835

80,149
.........

1,014,216
55,155

1,069,371
..........

L iv e r p o o l , N ovem ber 6tli.
L o r d o n , O ctober 22d.
H a v r e , October 9th.

St -ck...................................
Afloat, in excess o f 1S67.
Total visible supply..................................................................................
D ecrea se.............................. ............... ..........................." * * ......................

There is, however, as affecting prices in this country, a material differ,
ence in the nature of the stock, the total amount of American on hand at
Liverpool, at the date given above, being only 48,000 bales, against
133,000 bales at this time last year. But, aside from this circumstance,
it will be seen that the visible supply of Europe is 55,155 bales less than




1868]

PROSPECTS OF THE COTTON TRADE.

2 /3

at the same period of last year; which requires to be set off against the
probable increased supply from the new crops, if we suppose it is necessary
for the present stocks to be maintained. Making this allowance, then,
and supposing that the major portion o f the increase in the crop of Amer­
ican will be required at home, it appears that Europe may anticipate
results exceeding those of last year by about 200,000 bales, which would
allow an increase in the weekly consumption o f 3,840 bales over last year*
W e find that the amount taken by the trade at Liverpool last year, from
October 3 to December 31, averaged 57,870 bales per week; while, for
the first four weeks o f the corresponding period o f this year, the purchases
o f the trade have averaged 58,360 bales, or about 500 bales per week
more. For evident reasons, however, the purchases o f the trade for the
last few weeks are not perhaps a fair indication of the consumption. The
following is a statement of the average weekly consumption for the nine
months ending October 1 of the two years:
American.
1868...................................... bales. 24,414
1867 .................................................. 20,973

Brazil.
111,736
5,387

W .In d ia n .
2,042
2,149

E astln d . Mediter’ n. T otal.
13,406
3,480
54.078
14,852
2,844
46,205

This statement shows a weekly increase of 7,873 bales. The present
price of cotton at Liverpool, however, is one-third higher than the average
price during the last quarter o f 1867 ; which does not favor the supposition
that the rate o f consumption during the balance of the year will keep up to
the high rate indicated above, assuming that the price remains near the
present quotations.
The home trade of Great Britain appears to be steadily recovering, and
the demand from the agricultural districts, stimulated by the large wheat
crop, is expected, to prove larger than in late years. On the Continent,
there is a more assured political feeling; the grain and wine crops are
abundant; and enlarged orders for yarns and goods are expected from
that source. Perhaps the wants of eastern countries may prove moderate.
The India and China markets were glutted with goods at the beginning
o f this year, when prices were lo w ; and, stocks being larger than usual,
there will naturally be some (reluctance to buy largely at the advance in
prices required by the present value of cotton. The South American
markets being affected adversely by the continuance o f war and by the late
earthquakes, are not likely to require their average amount of manu­
factures. The probabilities would thus appear to favor a fair, steady
demand for goods, not below that o f last year, possibly above it.
There are some other considerations which are not unlikely to have a
certain degree o f influence upon the price during the next few weeks.
It is usually the policy of the Liverpool dealers to encourage a free export
from the United States early in the season, with a view to getting a large




274

MONEY AND CURRENCY.

[November,

amount afloat and centered at the southern ports ; and when a considerable
proportion of the crop is in process o f movement towards Liverpool,
the price is allowed to drop, and the cotton falls into the hands of English
buyers at low prices. It remains to be seen whether the fact o f the
crop being this year held to an unusually large extent by the planters
may not partially thwart this trade trick. The planters well enough
understand the game o f the Liverpool buyers; and if their financial con­
dition is such as to enable them to hold on for the best market, they will
doubtless keep back their cotton in the event o f any extreme decline
abroad. It is not, however, certain as yet that they have adequate
resources for thus protecting themselves. The present extreme stringency
o f money at New York is not favorable to the holding of cotton at the ports.
The banks have urgent applications for money from the South, to which
they cannot respond; and, unless it should prove that the monetary
pressure is largely due to artificial meddling, it is quite possible that
cotton may have to be shipped more freely than is consistent with the
interests o f holders.

MOSEY AND CURRENCY.
There is another article under this head in the October number o f the
M a g a z in e , in which the writer criticises both myself and Mr. Carroll; and

also raises certain objections to political economy as a science.
N ow political economy may or may not be entitled to be called an
exact science, that perhaps is a matter of opinion only, but J. S. R . has
quoted Mathews, let us hear what D r. McCulloch has to say upon the
subject. In alluding to the condition and progress of the sciences in gen­
eral he says : “ None of them has been instantaneously carried to perfec­
tion ; more or less error has always insinuated itself into the speculations
of their earliest cultivators. But the errors with which this science (polit­
ical economy) was formerly infected, are now fast disappearing, and a few
observations will suffice to show that it really admits of as much certainty
in its conclusion as any science founded on fact and experiment can poss­
ibly do.” A nd we think with D r. McCulloch, that its principles are now
getting to be pretty well understood, though it may suit the interest or
prejudices o f some parties to disparage them.
W ith respect to the confusion o f terms ; that is, perhaps, also a neces­
sity of the incipiency of the science ; but no doubt it has partly arisen
from the opposing schools o f philosophy, as well as from the wilful mis­
application of terms by non-professors of the science. But this is a mat­
ter of very small moment, as by a little attention we may very easily under­




/

1868]

MONEY AND CURRENCY.

275

stand the meaning of the author upon any part of the subject.
And
what does it matter whether we call the fertility of the soil, and the veg­
etable and mineral productions of the earth, capital or natural agents ?
They all become capital when they become property, and their relative
quantity and convenience for consumption must always limit the power
o f labor; and, therefore, the profit on all other capital. But I must now
attend more especially to the objections raised by J. S. R. to some o f the
propositions of my former article.
He seems to admit that under certain circumstances, an inconvertible
government cuirency might be practicable, even without the standard o f
value ; that is, so long as other countries adhered to the gold standard.”
“ This would be v irtually a currency at par with gold, being at par
with the currencies of other countries.”
This is no doubt quite correct,
and in that case we should not only get rid of the expense o f the getting
of the gold we at present export, but should obtain the gold we imported
from other countries for nothing ; while some of them would have to pay
for it at the present fixed price; and others more fortunate might receive
a portion o f it upon the same terms as ourselves. But the difficulty with
J . S. R. is expressed in the following words : “ But if all other countries
should depart from it (the standard o f value), how could they regulate
each other ?” Now this is a point upon which no difficulty could possibly
arise. Gold would be then in the same position as ail other commod­
ities; its production being regulated by its natural or exchangeable value,
which would be accurately measured by the money of account, the nom­
inal dollar.
It is a fact which nobody denies that the value of the precious metals
varies less than that of any other commodity ; and experience seems to
demonstrate that the supply is inexhaustible. Therefore we need not fear
any variation in value nor amount; as it would not be for the interest of
the miner to lower their relative price; nor to produce them at less than
the average profit. W e might, therefore, supposing the currency at par,
with the greatest confidence, establish it at the present rate of gold as per
dollar ; say about eighteen and a half dollars per ounce ; and make this
prices of gold the par value of the currency. There would, o f course, be
a price for gold in all countries, and, therefore, no difficulty in calculating
the relative values of the different currencies, whatever their denomination
or relative amount. There would be no commercial balances to pay, as
the exports would always balance the imports. W e should have no panics,
nor monetary disorders of any kind ; and what would be better still, we
should have no fluctuations in the demand for labor arising from those
causes. W e should also have the advantage of getting rid of the imper­
fections of gold as a standard of value,” without being forced to lint]




276

MONEY AND CURRENCY.

[November,

either a better or a worse substitute. Having disposed of this difficulty
we pass now to the next proposition.
Mr. J. S. R. proceeds to say, “ On the question of interest, Mr. Carroll
seems in the right. If interest is not the rent o f capital what is it? It is
certainly rent paid for the use of something ; and if that something can­
not as capital be employed in producing wealth why does it command a
rent.”
From this it would appear as theugh I had denied that interest was the
rent of capital; whereas I have held no such language, nor do I hold any
such opinion. W hat I did say was to the following effect: “ That
i nterest is the rent of capital permanently invested upon undoubted secu­
rity none will deny ; but under the present system and practice of banking,
gold-getting, stock-jobbing, &c., and the very extensive financial operations
o f almost all the governments o f the world, that principle can have but
the least possible effect at present in regulating the interest or discount on
money.” I therefore did not deny that interest was the rent c f capitalI merely intimated, what any candid person will admit, that the rate o^
profit upon capital had at present very little influence upon the rate of
interest on bank discounts.
Mr. Mill, speaking upon this point (book 3d, chap. 23), says: “ This
is evidently a question of demand and supply. Nor have demand and
supply any different meaning or effect in this case from what they have
in all others. The rate o f interest will be such as to equalize the demand
for loans with the supply of them. It will be such, that exactly as much
as some people are desirous to borrow at that rate, others will be willing
to lend. If there is more offered than demanded, interest will fall ; i f
more is demanded than offered, interest will rise; and in both cases to
the point at which the point of equation of supply and demand is re-estab'
lisbed.”
Both the demand and supply o f loans fluctuate more incessantly than
any other demand and supply whatsoever. The fluctuations in other things
depend on a limited number o f influencing circumstances ; but the desire
to borrow, and the willingness to lend are more or less influenced by every
circumstance which affects the state or progress of industry or commerce,
either generally or in any of their branches.
No doubt this is correct, but if M r. Carroll or J. S. R. are not satisfied
with the dictum, they can, if they choose, like the celebrated Don Quixote,
take a tilt at the Mill, and with probably as much chance of success. Both
of them assume that it is the increase of capital which lowers the rate o f
interest or profit. J. S. R., with reference to this point, says: “ But
when understood, as it evidently roust be, relatively to the demand of pro­
duction, it is undoubtedly true that the increase o f capital does tend to




1868]

MONET AND CURRENCY.

277

diminish , and does actually diminish the rate of interest, until at length
the diminution of interest even checks the accumulation of capital, as
shown in England, Holland and France.”
That the rate o f profit diminishes, and therefore that of interest upon
permanent investments with good security, as before stated, as population
increases no one will deny ; but the cause is not to be found in the supe­
rior increase of capital. On the contrary, this diminution of the rate o f
profit is caused by a tendency to a relative decrease of capital. Or, in
other words, as population increases the capital required for their main­
tenance is more difficult of attainment. It is spread over a wider surface,
and is found in more difficult positions. Capital is divided into fixed and
circulating.
The first, according to my opinion, previously expressed, includes the
land, its minerals and natural productions; the second, all kinds of skill)
machinery and other necessaries.
It must be acknowledged by all who take the trouble to think, and it is
conceded by Mill and others that the profit on circulating capital is neces­
sarily limited by the power of production on the worst soil in cultivation,
or on that at^the greatest distance from the consumer. In other words,
the rate of profit on circulating capital depends upon the amount of labor
required for the production of a given amount o f food and other neces­
saries.
M ill, in reference to the subject, says: (chapter on profits) “ It thus
appears that the two elements on which, and which a lo n e, the gains o f the
capitalists depend are, first, the magnitude of the produce, in other words,
the productive power of labor; and secondly, the proportion o f that
produce obtained by the laborers themselves; the ratio which the
remuneration of the laborers bears to the amount they produce. These
two things form the data for determining the gross amount divided
as profit among all the capitalists o f the country ; but the rate of profit,
the per centage on the capital, depends only on the second o f the two
elements, the laborers’ proportional share, and not on the amount to be
shared.
Thus it appears that there can be no such thing as a competition o f
capital. There may be a competition o f money, as no one denies; but it
is a misnomer to say there is a competition o f capital.
W hen the increase o f population forces an increase in the prices of food
and raw material, the nominal wages o f labor have to be increased also i
so that the laborers may obtain the requisite quantity o f the necessaries Of
life. This increase o f wages necessarily takes place in all employments
and being taken out of a less proportionate amount of production, it must
decrease the rate o f profit. Rents rise also, as a consequence o f the




278

MONET AND CURRENCY.

\_Novemh er,

increased price of food, and the excess of former profit goes into the pocket
of the land owner in the shape of rent. These circumstances decrease the
the rate of profit, and therefore the rate of interest.
W ith respect to the low rate of interest in England, Holland and
France, that can he satisfactorily accounted for without assuming it to
arise from the accumulation of capital.
England imports from foreign countries probably half her consumption
of necessaries, and that is, according to the principles laid down, quite
sufficient to account for a very low rate o f profit. Y et about eighteen
months since the rate of interest on discounts at the bank was ten per cent.
The rate o f interest generally rules higher in France than in England ;
but that can also be accounted foi without assuming that there is a less
proportionate amount.of capital in that country than in England. In
France a large proportion of the taxes are raised from the land; perhaps
fifty per cent; while in England, exclusive o f the poors rate, one aud a
half or two per cent is all which theland contributes. Thisstateof things
in France must be favorable to the rate o f profit on circulating capital.
A s, although taxes on land, according to valuation, might to some extent
retard cultivation, yet it would prevent the decrease in the rate of profit
upon circulating capital. The case of Holland is different.
Hitherto we have said little or nothing upon the effects of taxation,
though it is obvious when laid upon the necessaries o f life that it must
reduce the rate of profit, exactly in the same manner as a decrease of
fertility in the soil forced into cultivation by the increase of prices. W ith
respect to Holland, McCulloch observes:
“ The oppressive weight of taxation has been the principal cause of the
lowness of profits in the United Provinces during the last two centuries,
and the decline of their manufacturing and commercial prosperity. Not
withstanding the severe and laudable economy of her rulers, the vast
expense incurred by the Republic in her revolutionary struggle with
Spain, and her subsequent contests with France and England, led to the
contraction of an immense public debt, the interest and other necessary
charges on which obliged her to lay heavy taxes on the most indispensable
necessaries. Among others, high duties were laid upon foreign corn when
imported, on flour and meal when ground at the mill, and on bread when
it came from the oven. Taxation affected all the sources o f national
wealth ; and so oppressive did it ultimately become, that it was a common
saying at Amsterdam, that every dish of fish brought to table had been
once paid to the fisherman and six times to the state. Wages being ne­
cessarily raised, so as to enable the laborer to subsist, the weight of these
enormous taxes fell almost wholly upon the capitalist.”
This state of things in Holland, as shown by McCulloch, is quite suffi­




18681

MONET AND CURRENCT.

cient to account for the low rate of profit. It was the expense o f subsist­
ing the laborer, and not the competition or accumulation of capital the
same cause that everywhere else depresses the rate of profit.
The mistake of those who think that money is capital, and that land is
not, arises from a superficial view of the subject; they seem to think that
profit arises out of the process o f buying and selling; whereas, it is solely
the product of land and labor.
J . S. R. says: “ Land is not capital unless cultivated, and then only io
the extent o f its exchangeable value, after deducting the debts o f i s
nominal owner.”
All I have to say to this proposition is, that there seems to bo very
little difference between land and other kinds of wealth in this particular,
as Mill lays it down, that the difference between capital and wealth is
merely in the mode of consumption. The one is consumed in reproduc­
tion, while the other is consumed unproductively. Thus there is not
much difference between land entirely unused and uncultivated, and any
other kind of wealth, uselessly consumed.
W ith respect to land being capital only to the extent o f its exchange­
able value, it is exactly in the same position as other things; it is pre­
sumed that under ordinary circumstances its exchangeable value is its
true value ; but what the debts of its nominal owner can have to do with
the extent, or the degree o f its being capital, verily I do not understand.
“ But,” says J. S. R., “ it is precisely capital which the W est needs at
present, not land, not paper, not credit.” H o doubt this is true ; it is not
paper, nor credit, which the West needs ; they have both been tried and
found wanting. W hat the W est needs, as well as the East, is to make
every man earn his own capital before he expends it or trades with it.
There are too many merchants and jobbers who ought to be producers ;
and too many consumers who do not compensate the community for what
they eat, think and wear. And notwithstanding the assumption of Mr.
Carroll and J. S. R. that the W est needs capital, there is more capital
around the city o f Chicago, and within reach of her water privileges, than
almost any other city o f the Union, or she would not have sprung up,
like Jonah’s gourd, as it were, in a night. But unfortunately extreme
prosperity begets extravagance, and a mania to get rich at once, instead
of in the old patient, plodding manner. This is the evil, but there is no
help for it, except work, economy and patience.
J. S. R. objects to the proposition that “ money is neither wealth norcaptal, but merely a convenience, & c. A nd says the same might be “ said
o f the plow, the railway, ibe elevator.” Y et there is a difference between
money and these other conveniences. The one saves' time only, and the
other makes labor more productive.




The difference is one of principle;

280

MONET AND CURRENCY.

[November,

but the effect is, to some extent, the same; that is up to a certain point.
But the redundancy o f plows, railways, &c., would affect nobody’s interest
but that of the owners ; while a redundancy o f money would affect the
interest of the whole community ; but instead of assisting production the
expense of the addition would have to be paid for out of the proceeds of
labor and capital; therefore, we might as well assume that a tax would
make an addition to our wealth.
Individuals no doubt are right in regarding money as wealth, because
it can be exchanged for any other commodity, but it is not wealth, nor
capital to the community. M ill holds such a propositicn to be prepost­
erous.
He says : “ It often happens that the universal belief of one age of man­
kind, a belief from which no one was, nor without an extraordinary effort
of genius and courage could at that time be free, becomes to a subsequent
age so palpable an absurdity, that the only difficulty then, is how such a
thing can ever have appeared credible. It has so happened with the
doctrine that money is synonymous with wealth. The conceit seems too
preposterous to be thought o f as a serious opinion,” &c.
I have no more to say upon this part o f the subject, as Mr. Mill’ s testi­
mony is conclusive, though I may say that I held the same opinion long
before I had read his “ Principles of Political Economy,” and I believe
before his book was either printed or published.
W e pass now to the
next proposition.
J. 8. E. is o f opinion “ that it is not correct to say with M r. Sully that
a low rate of interest is always the predisposing cause o f exportation.”
Now let me remind J . S. R. that this was not a general proposition, but
had reference toEurope only. It was written in answer to Mr. Carroll’s
assumption “ that money runs away from a high rate o f interest all the
world over.” The words are, with the contest, as follows: “ In Europe,
under such circumstances, we see exactly the same phenomenon of the
exportation of the metals from the countries where the rate of interest is
comparatively low, to countries where the rate is comparatively high, and
it is always this comparatively low rate of interest, which is the predispos­
ing cause, & c.” Now this is quite a different proposition, and bears quite
a different meaning to that which J. S. R. has put upon it.
He goes on
to say : “ the cause of exportation is simply indebtedness.”
But this is
evidently putting the effect for the cause. The cause o f the indebtedness
was the cheapness of money in one country. There was no more goods
imported than would have been balanced by the exports ; but the prices
being higher in one country than another, money must be exported to
pay the balance.
Says J. S. R ., “ It is by no means clear that this steady increase and




1868]

MONEY AND CURRENCY.

281

constant depreciation of the currency does only h a r m a n d speaks of
the “ constant drain going on towards the East,” as a necessity ol the
trade and industry o f “ the vast regions still open to civilization,” and
supposes, that “ much larger amounts may be called for than are at present
in use.” O f course, as long as the W est is willing to give, there will be
no cessation to this demand. Money is exported through its depreciation ;
but why should the W est find currency gratuitously for the East through
the unnecessary regulation of the s ta n d a r d of value.
A nd as a plea for
the continuance of this state of things we are asked to “ consider the vast
amount of the national debts, the burdens o f which will thus be materially
lightened, and for this reason J. S. E. thinks we need not greatly regret
the slow and gradual decline of our standard of value,” causing as hesavs,
“ no individual suffering, but giving great aggregate relief to the taxpayer
and a stimulus to industry.”
Now, all this seems very plausible, and even philanthropic on the part
o f J. S. It. if it were only true ; but, unfortunately, it is neither true nor
honest, and we have still to .learn that honesty is n o t the best policy for
nations, as well as individuals.
Had we not better honestly pay our debts than to be giving our noney
or labor away, which is the same thing. A nd does J. S. R. really believe
that no individual suffering is caused, by constantly diminishing fixed in­
comes, which are chiefly derived from permanent investments in the debts
of various nations.
W ith respect to the stimulation of industry, that idea is utterly ex­
ploded. A constant increase of currency, even o f gold and silver, can
do nothing more than cause fluctuations in the demand for labor. Some­
times there may be a little feverish excitement, through the increase of
price, but as c o n s u m p tio n is thereby retarded, it always ends in an accu­
mulation of stocks, and a lack in the demand for labor, causing trade to
become a lottery, and producing all kinds of fraud and bankruptcy. But
our opponent seems to think that this production of gold may ultimately
stop without any change or interference with the standard of value, and
no doubt it may; but it may also be a long time first, perhaps another
century. In the mean time, is there any good reason why the United
States should bear the tax of the export of gold?
But we are told that if we should abolish the standard of value we
should be compelled to resume i t ; “ that w'e could no more do without it
than without a measure of length or capacity.” But this is certainly
a mistake, as a measure of value and a standard o f value are two distinct
things. I f the standard o n ly was abolished the measure would remain.
The standard might be abolished to-morrow, and if the newspapers did
not publish the fact, very few people would know anything about i t ; per-




282

MONET AND CURRENCY.

[November,

baps the gold miners, bankers, brokers, and merchants, values would
remain exactly as they were before, bearing the same relation to each other.
Suppose two commodities to be offered for sale, the one being produced
at half the cost of labor, or difficulty of attainment as the other, say, at
present, one would be charged half a dollar and the other a dollar.
W ell, the nominal dollar with its hundred parts, or cents, wou'id measure
it just the same as before; they would bear the same relation to each
other, and the same price. The only difference in the case would be, that
gold and silver would have a price, and as I have said before, have to be
paid according to price and weight. Therefore the measure of value
would be as accurate and as stable as before ; but in future, all countries
that imported gold and silver would have to pay for it by their own labor,
and not get it gratuitously as many o f them do at present.
It is very easy to assume, with our opponent, that, “ ever since Abraham
weighed to Ephron, the ITittite, four hundred shekels o f silver, current
money with the merchant, that the precious metals have been to a greater
or less extent the measure and standard of value
but not quite so easy
to prove it.
There was no doubt some criterion by which values were computed ;
but there could be no standard, according to d if fi c u lt y o f production, for
probably two thousand years after that; sheep and oxen were the critelions by which values were at that time estimated, There were no coins
in the world, the shekel was only a weight, representing, no doubt, as
much silver as by the arbitrary dictum of the times was considered equal
to the utility of a lam b; as p ie c e s o f silver and la m b s o f silver were syr,"
onymous terms, as before stated.*
In our last, we assumed that: “ A ll honest people, if they were intel­
ligent, would vote for the abolition o f bank currency, as well as the credit
system; and all other modes o f unduly increasing money.” B u tJ . S. R.
objects to this, and assumes that the evils arising from the system might
be restrained within safe bounds.” This, however, seems to me to be
impossible. The system is so general, so extensive, that it viciales the
whole volume o f trade and commerce ; and however prudent, no individual
can thoroughly protect himself from its c o s t ly and evil influence.
W hen we take into consideration the greater expense of doing business,
the immense amount of interest money paid to the banks, and their
immense profits; the frauds, the bankruptcies, the vice, the crime, the
general imprudence and demoralization which the system engenders
among the people, the monetary panics, the losses from the involuntary
idleness of the people, at intervals, of longer or shorter duration, according
♦ F o r further explanation upon this p oint, gee Article, “ H istory £nd Principles o f
M oney,” vol. 4U o l this Magazine.




186S]

MONET AND CURRENCT.

233

to the extent of the derangement of commerce, &c., and when we
remember that th o se w h o p a y , pay for the whole o f this waste and loss,
verily we cannot help repeating, that, were the people honest and intelli­
gent, they would vote to abolish the whole system. O f course we could
not, nor do we wish to prevent private individuals from disposing o f their
property on any terms they choose ; but we could prevent, if the people
understood the matter, banks from issuing their p r o m is e s to p a y as money,
and discounting their deposits on demand; and we could tax them, so
that the whole business would be less profitable— “ the public good is the
supreme law.”
W e pass now to a very ingenious paragraph, apparently constructed,
rather in the hope of throwing dust into the eyes o f the reader, than with
any expectation of successfully combatting the argument it is intended to
oppose.
Mr. J. S. E. says : “ Mr. Sully’s argument, that gold cannot he capit;l
because its exchangeable value depreciates in the ratio of its addition
(even if this fact could be proved), applies at least in part to wheat, corn,
houses, ships, or any other form of wealth.” N o w this is not true as a
principle; J. S. E. has not allowed for the exceptional circumstances
under which our system of commerce operates upon production and con­
sumption. As a general thing, what may he termed capital, never
depreciates; much less in the ratio o f its addition. There may be
exceptional cases, however, under our present fluctuating monetary and
banking systems; but the articles or commodities in question never do
depreciate, under ordinary circumstances.
First, because they are all
either articles of necessity or consumption ; and secondly, because the
cost of raw material, and therefore labor, has a tendency to rise constantly.
Some kinds of wealth may depreciate, in exchangeable value, but wheat,
corn, houses and ships, do not belong to that category. These things
would never be in excess, unless consumption were retarded by an increase
o f price, or a sudden failure of demand through a monetary crisis. The
case of gold and silver is quite different, as they are not articles of daily
or n e c e s s a r ily consumption, their indefinite increase makes no addition to
wealth or capital. But says our opponent: “ I f gold is not wealth, how
comes it that a g r e e n b a c k is much cheaper? Cheaper than that which
possesses no value ?” Now this is merely a quibble, and is taking up
time and space to no purpose. Although gold is not wealth to the com ­
munity, seeing that it makes no addition to meat, drink, clothing or
shelter, it is wealth to the individual, as before intimated. But as it is
the fixed standard of value, and legal tender for debts, society is forced
to purchase tiny amount which may be presented to it, and even at a price
beyond the cost of production. It thus receives a conventional and




284

MONET AND CURRENCY.

[.November,

fictitious value, which J. S. R . will admit, upon second consideration, con­
siderably exceeds that of a greenback. Ergo, it would be much cheaper
for society to furnish a currency o f greenbacks, than to maintain one of
gold.
J . S. R . objects to the assumption of Mill, “ that the demand for money
is limited only by the means of the purchaser,” because capitalists may
be seeking for investments, and may be willing to loan their money instead
o f demanding some other commodity immediately in return for it. And
he further says : “ the mass of the people want money because it com­
mands everything else, and this demand has no limit.” J. S. R. seems
to have mistaken what constitutes a demand for money. A desire for
money, and a demand for money, are entirely separate matters.
Mr.
Mill says upon this point: “ The demand for money again consists o f all
the goods offered for sale. Every seller of goods is a buyer of money,
and the goods he brings with him constitutes his demand.”
A person having no goods to sell, may have a desire for money, because,
“ it would command all other things
but to assume that such a person
had any demand upon the market for money would be ridiculous. If
people choose to loan money, that is an affair between the borrower and
the lender. If the money have been previously obtained by production,
society is neither injured nor benefitted.
For one thing Mr. J. S. R. gives Mr. Mill credit, that is, for having
stated correctly the tendency of credit to advance prices; but he says,
“ we cannot admit that all credit accelerates consumption without demand­
ing in return an equivalent production, or that it necessarily raises prices
above their true level.”
R ow , we cannot help what J. S. R . chooses to admit, and wlrat he
chooses not to admit, but we hope to be excused for saying that we do
not know of any one who has made such an assertion, “ that all credit
accelerates consumption without demanding iir return an equivalent pro­
duction.” The language used is, Whatever accelerates consumption, &c.,
which certainly bears quite a different meaning, and, I think, cannot easily
be controverted. I must now beg leave to quote Mr. Mill once more,
against the conclusion “ that credit does not necessarily raise prices above
their true level.”
Mr. Mill says: “ In a state of commerce in which much credit is
liabitua ly given general •prices at any moment depend much more upon the
state of credit than upon the quantity of money. For credit, though it
is not a producing power, is a purchasing power, and a person who having
credit avails himself of it in the purchase of goods, creates just as much
demand for the goods, and tends quite as much to raise their price as if
he made an equal amount o f purchases with ready money.”




1868]

385

TRADE OF GREAT BRITAIN WITH THE UNITED STATES.

N o w we have endeavored to answ er, eith er b y ou r ow n rea son in g, or
q uotation from oth ers, all the objection s raised against o u r form er article
b y J . S. B ., and h op e w e have su cceed ed ; b ut i f unfortunately w e have
n ot satisfied h im , and h e should

again favor us w ith his notice, we have

o n ly to ask o f him , that h e w ill con descen d to qu ote us fairly, and n ot
transpose our sentences to m ake th em m ean w hat th ey w ere n o t intended
to m e a n ; and then perhaps he m ay discover that th ey are not so very
m u ch o p p osed to truth after all.

R ic h a r d S u l l e y .

TRADE OF GREAT BRITAIN WITH THE UNITED STATES.
We teke the following from a late little to the C ommercial
C hronicle from its London Correspondent:

and

F inancial

It is satisfactory, to observe that in some branches our trade with the United States
for the month of August, exhibits an improvement as compared with last year. In
that month, for instance, the shipments of linen piece goods amounted to 9,194,496
yards, against 8,574,910 yards ; of linen th ead to 142,l';6 lb., against 135,527 1b.;
of carpets and druggets to 875,126 yards, against 355,782 yards; and of worsted
stuffs to 10,455,810 yards, against 9,840,367 yards in August last year. The following
statement shows the exports of the principal des riptions of cotton, silk, and woo'en
goods to the United Slates and to France during the first eight months of the present
and last two years :
TO T H E

U N IT E D

STATES.

1866.
87,558,274
1.018,202
77,995,021
1,450,422
485,307
4,199,305
3,145,630
57,277,536

Cotton piece g ood s..................
Cotton thread.............................
Linen piece g o o d s .................
Linen thread...............................
Silk piece g o o d s ........................
W oolen c l o t h ..........................
Carpets and druggets..............
W orsted stuffs...........................
T ota l.....................................

1867.
70,000,205
980,274
60,258,307
968,265
277,257
2,851,158
2,979-063
37,080,1)82

1S68.
58,418 883
1,123,697
54,512,005
837,181
253,963
2,096,390
2,257,847
61,008,950

175,394,611

170,508,631

TO FRANCE.
Cotton yarn...............................
Cotton piece g o o d s ..................
Cotton thread...........................
Lmen yarn.................................
Linen p ece goods - ...........
W oolen yarn.............................
W oolen clotn .............................
Carpets and druggets...............
W orsted stuffs............................
T otal....................................

2,541,294
33,016,722
91,144
1,522,055
2,573,791
1,359,950
2,680,606
509,410
17,672,312

3,208,364
20,7i9,980
46,467
2,560,660
3,385,042
2,002,415
5,082,893
304,747
14,036,742

2,402,506
21,726,308
84,999
1,799.528
2,352-11
5,608 !■ 1
1,229. f X
599,0 3
10,674,Of 8

61,913,284

51,413,910

46,539,176

According to the official returns, the imports of wheat into the United Kingdom in
August amounted to 2,012,374 cwt., being 1,125,096 cwt. less than in August last
year, in which month they reached a total of 3,287,469 cwt. From Russia, there is a
reduction of about 735,000 cwt.; from Prussia, of 292,000 cwt. ; from Egypt, of
20,000 cwt. ; from the United States, of 15S,500 cwt., and from Chili, of 27,250 cwt.
In the eight months ending with August 31, the imports were 22,710,165 cwt., against
21,031,647 cwt. in the corresponding period in 1807, and is ,529,299 cwt. in 1866.
From the United States and Egypt, the receipts were as much as 5,000,000 cwt.
greater lhan in 1867, while those from the tianubian provinces show an augmentation
of 1,573,971 cwt. On the other hand, however, Russia and Prussia exhibit a consid­
erable decline, the diminution in the importation from those two countries being
3,792,759 cwt. The following statement shows the quantities of wheat and flour




5

386

TRADE OF GREAT BRITAIN WITH THE UNITED S T A T E S .[V oiim J e r ,

received from each principal wheat growing country in the first eight months of the
present and last two years :

Russ id........................................................
P ru ssia .....................................................
France.............. .....................................
Illyria, Crotia and D a 'm a tia ...............
Turkey, Moldavia, and W allachia.. . .
E gy p t........................................................
United States..........................................
Chili .........................................................
British North Am erica..........................
Total, including other countries.

1866.
4,610,396
2,898,506
3,305,024
1,250,828
329,738
11,769
345,750
44,253
8,789

1867.
8,045,857
4,474,338
531,976
267,916
1,694,506
422,203
1,733,945
1,615,904
3,132

1868.
6,214,731
2,512,805
14,424
709,902
2,676,491
2,726,372
4,529,266
990,116
272,396

15,529,299

- 21,031,647

22,719,165

1866.
3,078,740
193,051
15,S18

1867.
1,071,394
208,704
23,838

1868.
256,778
469,508
■101,111

3,637,648

2,267,532

1,824,378

F rance.............................................................................. cw ts.
United States............................. ..............................................
British N orth A m erica............................................... ............

The Board of Trade returns for August, and the eight months ending August 31,
have been issued to-day. They show unfavorable results as regards our trade, the
declared value of our exports being considerably less than in 1867 and in 1866. In
August, the declared value of our principal exports of British and Irish produce and
manufactures was £16,427,697, being a diminution of £1,453,402 as compared with
the corresponding month last year. As compared with each of the seven previous
months of the year, a decided improvement is shown, but, at the same time, the
increase in the exports in August,over July in the current year is by no means in an
equal ratio with 1867 and 1866. This year, the increase amounts to only £679,828,
but in 1867, was £2.318,569, and in 1866 £2,492,322. In the eight months ending
with August 31, the shipments of British and Irish produce and m nufactures were
valued at £116,777,023 against £121,056,913 in 1867, and £125,265,820 in 1866.
The computed real value of our principal imports in July was £21,487,6 2 against
£19,215,843 last year, and £10,641,564 in 1866. In the seven months ending with
July 31, it amounted to £132,283,806 against£128,935,000 in 1867,and £143,544,759
in 1866.
As regards the imports of cotton, the principal feature in the monthly statement is
the heavy falling rff in the receipts from the United Slates, the total in August last
year being as much as 267,291 cwt., while in the current year it amounts to only
87,751 cwt. In the eight months, however, the imports direct of American cotton
have been 4,345,188 cwt., being an increase of 40\105 cwt., as compared with last
year. The imports of Brazilian cotton have increased from 25,509 cwt. in August
1867 to 85,422 cwt. in August this year, but the imports of Egyptian cotton have
declined from 66,996 cwt. to 37,374 cwt., and of East India from 611,582 cwt. to
509,851 cwt. The following were the imports of cotton into the United Kingdom in
the eight months endiug w»th August 31;
IM P O R T S

OF

C OTTON .

1866.
cw t.
8,834,000
6,413
3,145
495,883
83,930
735,460
3,439,087
17,949
193,734

F rom —
United States....................
Bahamas and Bermudas.
M e x ico ...............................
B razil...................................
T u rk ey ...............................
E gypt...................................
British I n d ia ....................
C hina.................................
Other cou n tries...............

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




8,809,601

■

1867.
cw t.
3,940,083
10,349
22
467,007
55,332
851,675
1,869,451
4,707
195,054

1868.
cw t.
4,345,188
368

7,391,6S0

7,508,221

627,599
30,462
820,647
1,532,743
143,214

1868]

387

TRADE OF GREAT BRITAIN WITH THE UNITED STATES.

The exporta of cotton in August were 294,839 cwt. against 288,629 cwt. last year,
and 403,214 cwt. in 1866. In the eight months they were as follows:
EXPORTS

O F CO T T O N .

T o—
R u ssia ................
P russia...............
H anover.............
Hanse T ow n s..
H olland_______
Other countries,

1866,
cw t.
248,235
42,689
5,618
516,477
347,865
1,137,323

1867,
cw t.
293,735
145,786
3,514
459,132
345,365
770,056

1868,
cw t.
188,017
77,018
1,671
387,758
357,792
614,288

T ota l........

2,287,607

2,018,18S

1,626,544

The following were the exports o f cotton goods in August, and in the eight months.
IN AUGUST.
1866.
Y a r n ..............

P iece good s.,
T hread..........
IN

E IG H T

1867.
15,365,614
260,122,829
596,075

1868.
14,494,338
275,583,838
478,634

105,718,155
1,789,176,406
4,303,841

1,800,260,705
4,222,926

M O N TH S .

P iece goods .
T h r e a d ........

A n n e x e d is a s t a t e m e n t s h o w in g t h e d e c l a r e d v a l u e o f t h e c o t t o n g o o d s e x p o r t e d
in A u g u s t , a n d in t h e e ig h t m o n t h s e n d in g w it h A u g u s t 3 1 :
IN

AU G U ST .

1866.
Y a r n ............

P iece goods .
T h r e a d .........
IN

E IG H T

1867.
£1,375,173
4,904,937
102,381

186S.
£1,173,292
4,705,809
79,284

9,789,042
35,312,134
751,840

32,2(8,723
707,450

M ONTH S.

P iece goods .
T h r e a d .........

S o fa r a s t h e U n it e d S t a t e s a r e c o n c r r n e d , th e d e c l a r e d v a lu e o f o u r e x p o r t s o f
B r it is h an d I r is h p r o d u c e a n d m a n u fa c t u r e s in th e s e v e n m o n t h s w e r e :
1866.
lb'67.
1868.
P orts on A tlantic—N orth ern ....................................... £16,268,077
£12,462,678
£11,512,924
“
“
—S ou th ern ..........................................
643,820
774,285
607,257
P orts on P a c ific ..................................................................
426,142
490,816
364,407

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

17,338,939

13,727,779

12,484,648

T h e f o l l o w i n g w e r e th e c h i e f s h ip m e n t s o f B r it is h a n d I r is h p r o d u c e a n d m a n u fa c ­
t u r e s t o th e U n i t e d S t a t e s d u r in g t h e e i g h t m o n t h s e n d in g w it h A u g u s t 81 :

Alkali, c w t ...............................................................................
Beer & ale, b b ls ......................................................................
Coals, t o n s ...............................................................................

1866.
1,131,755
9,687
101,723

18C7.
947,932
12,783
87,496

166S.
l,062,60n
13,46q
76,87a

Co t t o n M a n u f a c t u r e s :

Piece goods, yds..................................................................
Thread, l b .......................................................................
Eaathenware and Porcelain p k g s .......................................
Haberdashery and M illinery................................................

87,558,274 70,0 K),205 58,418,883
•1,0IS,202
980,274 1.123.697
79,057
71,570
62’ 887
929,090
714,384
579,195

H a r d w a r e a n d Cu t l e r y :

Knives, forks, & c., value ................................... .............
Anvils, vices, saws, &c , value. .......................................
Manufactures o f German silver, value............................

£190,573
68,827
461,207

£59,231
66,070
333,087

£103,315
57,221
237,019

L in e n M a n u f a c t u r e s :

P iece goods, yd s..................................................................
Thread................................................................................♦.

77,995,621 60,258,307 54,512,005
1,450,422
968,265
837,184

M etals—

Iron—Pig, & cMt o n s .....................................................
Bar, &c., to n s ..........................................................
Railroad, t o n s ..........................................................
Castings, t o n s ............................. .............................




56,£36
39,956
62,806
966

82,172
29,515
125,551
1,027

48,392
24,535
18S,733
955

3 88

[ November,

HARTFORD AND N EW HAVEN RAILROAD,
ILROAD.

Hoops, sheets and boiler plates, tons.
W rought, to n s ..........................................
Steel Unwrought, t o n s ........................ .........
Copper, wrought, cw ts ......................................
Lead, pig, & c., ton s............................................
Tin plates, cw ts ...................................................
O ilseed, galls............................................................
Salt, ton s....................................................................

18,768
7,231
13,172
6,881
4,591
771,765
1,283,438
114,516

21,761
5,057
13,098
3,457
4,564
723,975
1,273,418
97,308

9,960
2,615
9,522
1,319
5,060
898,273
159,629
90,511

485,367
5,518
21,952
£84,214
£5^,782
82.865
124,640

277,257
2,393
13,857
34,647
58,360
54,714
8,904

253,963
1,189
9,456
96,259
57,194
79,612
87,172

S il k M a n u f a c t u r e s —

Broad piece goods, & c., y a rd s ..........................
Handkerchiefs, dozens.........................................
R ibbons, lbs...........................................................
Other articles o f silk (v a lu e ).............................
silK m anuf’ s m ixed with other m aterials.. . .
Spirits, British, galls................................................
W ool, lbs..................................................................W o o l en a n d W o r s t e d M a n u f a c t u r e s —

Cloth, y a r d s ...................................................
Carpets and druggets, yards..............................
Shawls, rugs, & c.. D u m ber....................................

4,119,305 2,851,158 2,096,398
3,145,630 2,9r.9,063 2,257,847
69,674
114,047
99,135
57,277,536 37,080,082 51,008,956

HARTFORD A1VD N E W HAVEN RAILROAD.

The earnings and expenses o f this road for the years ending August 3 1 ,1 8 6 7
and 1868, were a3 follows :

3,798 08

1868.
$891,091 20
632,454 66
114,709 50
55,627 28
3,452 35

$1,685,334 59

$1,697,334 39

T otal e x p e n se s ....

$982,518 90

$1,024,935 08

N et earnings.........
Interest ana taxes,

702,815 69
158,818 80

672,399 31
190,808 50

B alance......... .

543,996 89

$481,590 81

Earnings
From Passengers
From freight.........
From exp resses...
From m nils............
From rents, & c ....
T otal................

1867.
$911 536 18
625,992 72
114,007 61

Compared with the previous year the gross earnings o f 1 8 67-68, show an
increase o f $11,999 80, with an increase in operating expenses o f $42,416 18,
making the decrease in net earnings, $30,416 33. The balance remaining after
the payment o f interest and taxes is less than that o f the preceding year by
$62,406 08.
The income o f the company from all sources during the year was as follows :
Cash on hand, Sept. 1 , 1S67..................................................................................................
Earnings o f the road..............................................................................................................
Sales o f real e s ta te ..........................................................................................................— ~

$166r% 3 06
1,697,334 39
6,367 44

T otal................................................................................................................................... $1,870,664 89

Thus accounted f o r :
Dividends.............................................................................................
In terest........................................................................... ...................
Op* rating and repairing roa d ..........................................................
Tom linson Bridge Company, for depot grounds, N ew Haven,
Steamboat Orient....................................................................... ..
.
R*al estate in Conn* cticu t..... ...........t ........................................
Balance debts due the com pany..................................................... .
State and national taxes....................................................................
C a s h ........................... ..........................................................................
Total as above,




$4-22,566
57,526
1,008,829
49,332
3,445
4.975
20,134
133.281
170.573

00
51
24
30
36
10
52
99
87

$1,870,664 89

1868]

389

CALIFORNIA TREASURE MOVEMENTS FOR NINE MONTHS.
CALIFORNIA TR EA SU R E M OVEM ENTS FOR NINE MONTHS.

We have received from Thomas P. Kettell the following statement of the treasure
movement at California fcr nine months :
The imports of treasure (exclusive of those from Victoria, which are included in 'he
receipts from coastwise ports) for the nine months ending September 80, 1867, and
1868, respectively, were as follows :
Japan......................
M e x i c o .................
Panama..................
Sandwich Islands
Society Isla n d s...

1,505,113
67,244
30,447
2,500

1868.
$4,164 00
1,627,721 50
800 00
4,400 00

.f 3
25
91
00

Totals................................... .....................................................
$1,665,305 69
Decrease, 1868............................ ..........................................................................

$1,636,635 56
28,670 19

The receipts of treasure and bullion from coastwise ports and Victoria (V. I.) for nine
months ending September 30, i 86V and 1868, respectively, were as follows :
1867.
$4,150,340
329,216

U ncoined...................................................................................................
Coined............. ............................................ - ......................................

1868..
$1,735,654
668,762

T o t a ls ................................................... ..J ........................................
$4,479,556
$2,414,416
Decrease, 1868........................................................................................................................ $2,065,149

The following is a comparative statement of the bullion and treasure received during
nine months ending September 30, 186*7 and 1868, respectively, from our own and
Nevada State:
1867.
Northern M in e s .........................................................
Southern M in es..........................................................

U ncoined.
$29,528,876
2,328,834

Coined.
$2,444,998
959,519

Totals.
$31,973,874
3,288,353

T ota ls............................................................................
1868.
Northern M ines................................
Southern M ines.........................................................

$31,857,710

$3,404,517

$35,262,227

$27,362,923
2,220,639

$3,199,111
1,236,080

$^0,562,634
3,456,719

T otals...........................................................................
$29,583,562
$4,435,191
Decrease, 1868..................................................................................................................

$34,018,753
$1,243,474

The following is a recapitulation of the foregoing statement:
Im ports..........................................................................................................
C oa-tw ise leceip ts..................................................................................
Intei io r ..........................................................................................................

1867.
$1,665,306
4,479,556
35,262,227

1868.
$1,636,636
2,414,416
34,018,753

T ota ls........................... .............................................................................
$41,407,089
$38,069,805
Decrease, 1868............................................................................................_ .................... $3,337,284

The exports of treasure for the nine months ending September 30, 1868, and the
same compared with a like period of 1867, were as follows:
T o—
China...............................
C h ile .................................
C en;r 1 American ports,
Engl m d ..........................
France............................. .
Japan................................
M e x i c o ........................... .
N ew Y o r k .......................
Sandwich Islands . . . . £,
Society Inlands...............
Vancouver Island.........
T ota l....................",
Add duties.......................
Decrease 1858




1S67.
. $7,153,465
723,450
531,044
.
4,426,431
1,453,659
53,969
26,000
, 17,311,315
8,300
500
50,000

07
97
55
31
76
IS
00
77
00
00
00

. $31,733,136 61
.

1868.
$3,978,009 65
583,200
4,630,459
941.553
362,459
8,-00
IS,460.421
50.000

00
00
47
46
00
30
00

95.000 00
$29,058,103 78

5 993,704 00

6,560,729 95

$37,731,840 61

$35,618,833 73

390

[November,

CONSUMPTION OF COTTON IN EUROPE.
CONSUMPTION, &Ci, OF COTTON IN EUROPE,

M. Ott-Trumpler, of Zorich, has issued an interesting circular respecting the cotton
movements of the last season, of which the following are the chief particulars, the
figures represent thousands of bales:
ENGLAND.

Amer- Inican. dian.
244
466
1,228 1,190

BraSunzil. Egypt, dry. Total
127
35
911
39
589 n s
116 3,298

Stock in the ports, Oct. 1, 1S67.
Im p oit during the season...........

.

T o ta l........................................
E xport to the C ontin ent. . . . . . .

,21,472 1,656
.
162
597

716
81

210
9

155
25

4,209
874

1,059
260

635
102

201
19

130
19

3,335
513

799 '

533

182

111

2,822

52

21

4

51

1S1

122

86

58

225

839

Total in the ports, September 30,

.

Consum ption..........................................

1,310
113
1,197

C O N T IN E N T .

Stock, Oct. 1, 1867, at Havre, Marseilles, B ordeaux,
Nantes, Antwerp, Amsterdam, Rotterdam, Bremen,
Hamburg, Trieste and G e n o a ........... ..............................
53
Im ports direct from countries o f production at abovenamed p o r t s .........................................................................
348
E xport from England to the Continent, deduction being
made for 11,000 bales re-exported from Continent to
E ngland....... ........................................................................
158

592

81

9

23

863

T o t a l....................................................................................
559
766
Stock, te p . 30 at the above named p orts................................
21 43

1S8
13

71
2

299
22

1,883
101

723

175

69

277

1,782

1867-68 ................................................................................................ 1,197
186667 ...........................
1,016
1 8 6 5 -6 6 .................................................................................................
846
186465 ....................................................
1S7
1S63-64 . . . . *.......................................................................................
178
186263 .............................
99
1861-62 ........................................................................................... .
304

799
815
878
850
620
905
675

533
298
259
203
134
111
101

182
160
186
285
219
163
122

111
125
150
348
414
54
15

2,S22
2,414
2,319
1,873
1,565
1,382
1,217

18601859-

249
207

C onsum ption .................. - .......................................................

538

E N G L IS H C O N S U M PTIO N .

61 ............................................................................................ 2,170
60 ........................................................................................... 2,135

193
218

2,612
2,560

69
277
f 5 217
69 237
89 286
106 246
64 108
42
40.
V------------- — ,— _—/
78
55

1,782
1,733
1,616
1,182
1,033
814
776
1,776
1,712

251
215
255
374
325
2-7
164

4,664
4,147
3,985
3,055
2,598
2,146
1,993

C O N S U M P T IO N O P C O N T IN E N T .

18671366-67
18651861-

68 ...........
.........
66 ...........................................................................................
65 ...................................................................

538
532
391
49

723
777
755
637

1863-

64 ...............................................................

64

543

18621861-

63 ...........................................................................................
62 ...........................................................................................

34
258

559
415

18601859-

61 ............................................................................................ 1,273
60 ........................................................................................... 1,272

425
385

175
152
164
121
74
49
21

C O N S U M P T IO N O P E U R O P E .

1867-63
1866 67
1865-66
1864186318621861- 62

................................................................................................. 1,735
........................
1,548
................................................................................................. 1,287
65 ...........................................................................................
236
64 ...........................................................................................
242
6 3 ................................................................................
133
................................................................................................
562

1,522
1,592
1,633
1,487
1,163
1,461
1,090

186061 ............................................................................................ 3,443
1859-60 ................................................................................................. 3,407

674
592

708
450
423
324
208
160
122

271
273

383
342
387
634
660
162
55

4,388
4,272

S TO CK IN E N G L A N D , S E P T . 30 ,

11864.........
11866.........
490 1 1862....... . . . . 32^ 1
1868.........
1867.......... . . . 911 |1865....... ........ 3u4 |1863 ____....... 217 ||1861____ . . . . 779!

954

The f Rowing figures show the imports and c .nsump i ,u in Europe in each of the
last seven seasons :
Stocks i n ,----- Im ports----- »
E urope Amer- Other
Oi_t. 1. ican. countries.
1861- 2 ................................... 1,019
14
1.364
1862- 3 ...................................
368
121
1,947
1863- 4 ...................................
250
215
2,716
1861-5........................................
563
250
2,602
1865- 6 ...................................
357
1,565
3,166
1866- 7 ................................... 1,143
1,495
2,601
1867-8 ................................. . . . 1*092
1,572.
2,554




Stocks
tfo se .o f ,-------Consumption-------,
Total, season. Total. EDgl’ d. Cont’ t.
2,427
363
1,993
1,217
176
2,436
250
2,146
1,332
8X4
3,181
563
2,588
1.565
1,033
3,415
317
3,055
li873
1,186
5,078
1,143
3,935
2,310
1,616
5 239
1,092
1,092
2.414
1,733
5,218
614
614
2,822
1,782

1868]

391

PUBLIC DEBT OP THE UNITED STATES.

PUBLIC DEBT OF TIIE UNITED STATES.
A bstract statement, as appears from the books and Treasurer’s returns in the
Treasury Department, on the 1st o f O ctober and 1st of November, 1868 :
D E B T B E A R I N G C O IN I N T E R E S T .

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

October 1.
Novem ber 1.
Increase.
5 per cent, bon d s.................................... $221,583,400 00 $221,588,400 00
$ ...
6
“
1881.......................................
283,617,300 00 283,677,300 00
..
6
“
(5-20’ s ) ........
1,594,8:8,600 00 1,602,312,250 00 7,423,650 00
Total

2,100,154,300 00 2,107,577,950 00 7,423,650 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 .

6 per ct. (R R.) b on d s...........................
3-y’arscom . in t.n ’ te s ...........................
3 p. cent, certificates...........................
Navy Pen. F ’d 3 p .c ...........................
T otal

$39,634,000
5,251,930
65 230,000
13,000,000

00
00
00
00

123,115,930 00

$42,194,000 00 $2,560,000 00
$ ........
....................
............. 5,251,930 00
58,325,000 00
. . . . . . . 6,905,000 00
14,000,000 00 1,000,000 00
............
$8,596,930 00

114,519,000 00

M ATU RED DEBT NOT PRESEN TED FOR PAYM EN T.

7-30 n. due Ang.15,’ 67, J ’ e & J ’y l5 , ’ 63 $3,537,000 00
6,322,070 00
6 p. c. com p, in t.n ’ e s ...........................
B ’ ds o f T exa s ind’ t y ............. ...........
256,000 00
154,111 64
Treasury notes (old).............................
B ’ ds o f Apr. 15, 1842, Jan. 28, 1847 &
Mar. 31, 1848....................... ..............
967,650 00
445,492 00
Treas. n s o f M a.3,63...........................
Temporary loa n ...................................
744,920 00
13,000 00
Certifi. o f indebt’ ess..........................-

$2,956,950
5,128,310
256,000
151,611
487,500
445,492
314,860
13,000

12,440,243 64

Total

$580,050 f0
1,193,760 00

00 $
00
00
64
00
00
00
00

2,500 00
480,150 00

.

430,060’ 66
$2,686,520 00

9,753,723 64 $

D E B T B E A R IN G NO IN T E R E S T .

United States notes.
Fractional currency . .
Gold certi. o f deposit,

$356,021,073 00 $356,021,073 00
32,933,614 17
33,413,985 42
20,236,400 00
19,716,840 00

Total

409,191,087 17

$ .............
480,371 25
.............

409,151,898 42

$ .............
.............
519,560 00
$39,188 75

R E C A P IT U L A T IO N .

$

Bearing coin interest.
Bearing cu r'y Interest.
Matured debt .............
Bearing no interest ..

$

$

2,100,154,^00 00 2,107,S’!?,950 00 7,423,650 00
...............
123,115,030 00
114,519,000 00
8,596,930 00
12,4 0,243 04
9,753,723 64
2,686,520 00
409,191,087 17 409,151,898 42
39,188 75

Aggregate................................................. 2,644,901,560 81 2,641,002.572 06
................. 3,898,988 75
Coin & cur. in T reas...............................
110,257,841 66 113,873,019 24 3,615,177 18
.................
D ebt less coin and enr........................... 2,534,643,718 95 2,527,139.552 82

................. 7,514,166 13

The following statement shows the amou Qt o f coin and currency separately at
the dates in the foregoing table :
CO IN A N D C U R R E N C Y I N T R E A S U R Y .

C o in .....................................................
Currency..............................................

$96,891,817 10 $103,407,935 77 $6,516,13S 67 $ .................
13,365,904 76
10,463,033 47 .................... 2,900,961 29

T otal coin & cnrre’ y ............................

110,257,841 86 113,373,019 24

3,615,177 38

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

The annual interest payable on the debt, as existing October 1, and N ovem ­
ber I , 1868, exclusive o f interest on the compound interest notes), compares as
follows
A N N U A L IN T E R E S T P A Y A B L E

ON

P U B L IC

DEBT.

Increase.
$ ..............
...........
445,419 00

Decrease.

Total coin in terest............................. $123,793,374 00 $124,238,793 00 $445,419 00
Currency—6 per c e n t s ..........................
$2,378,040 00 $2,531,640 00
153,600 00
“
3
“
...........................
2,346,900 00
2,169,740 60
.............

$ ...............
...............
117,150 00

T o ta l cu rrency in te r’ t.

$23,550 00

Coin—5 per cen ts...................................
“
6 “ 1881............................. . ..
“
0 “
(5-20’ s ).............................




October 1.
November 1.
$11,079,420 00 $11,019,420 00
17,020,638 00 17,020,638 00
95,693,316 00 90,13S,735 00

$4,724,940 00

$4,701,390 00

$

$....

392

ASSISTANT TREASURER’S STATEMENT FOR OCTOBER.

\NoVember,

NEW YORK, PROVIDENCE AND BOSTON RAILROAD COMPANY,
The annual report of this company for the year ending August 3 1 ,1 8 6 8 , shows
the following general balance sheet o f receipts and expenditures for the y ea r:
DEBTOR.

C R E D IT O R .

T o ba’ ance, as per last an­
nual report, to w i t :
Stoningt’ n ste m boat Co. $113 43
Bills receivable................ 2,000 00
Bonds due 1878................ 20,000 <0
D uelrom c’ nnectingr’ ads 3,652 81
Balance in ban d ............... 77,174 67
---------------102,040 91
Receipts for year............................... 463,464 92
Stockholders’ issue, 1867................. 132,800 00
Bills payable,represented by steam­
boat s t o c k .............................m <_ 405,000 00
StoningtonBank collateral account
3,045 60

By expenditures for the yea r.............
Interest on bonds p a id ......................
Interest on floati1g d eb t..................
Expenses extraordinary....................
Fire damage
..............
Stock Stoningt’ n Stea’ b’ tC o.............
Bills o f August, 1867.........................
Paid M. Morgan’ s Sons’ b ala n ce...
Balance carried to new account, to
w it:
M. Morgan’ s Sons................................
Due from conneciing roads...............
A. S. Mathews, Supyt .....................
Bills re c e iv a b le ...................................
1,107.251 43 Due from Ira H. Palmer, andin Stonington B an k.....................................
Stouington Steamboat C o ....... ........
B onds.....................

361,017
36,655
21,129
7,032
13,933
518,650
18,564
2,072

46
00
39
50
03
00
88
98

2,758 80
12,513 58
5,218 11
2,COO 00
85,683 43
22 27
20,000 00

$1,107,251 43

The President remarks, in concluding his report, that the future prospects o f
the company are better than at any time during the past two years, and we
bel eve that it will be in a condition to resume the payment o f dividends by the
first o f January next.

ASSISTANT TREASURER’ S STATEMENT FOR OCTOBER,

The following is the official statement of the business of the office of the Assist­
ant Treasurer of the United States, in New York, for the month of October, 1868 :
R E C E IP T S A N D

D IS B U R S E M E N T S .

Balance, September 30,1868 .................................................................
$94,499,690 11
R eceipts during the m on th :
On account o f c u sto m s .......................................................................
$10,448,222 94
do
Gold n otes................................................................................
5,208,£60 00
do
Internal revenue.....................................................................
244,736 33
do
Three per cent Certificates...................................................
5,810,000 00
do
Post-office D epartm ent.........................................................
412,403 04
do
T ra n sfers..................................................................................
10,892,000 00
5,576 20
do
Patent fees ............................................................................
12,655,385 12
do
M iscella n eou s.........................................................................
ll,00ii,137 83
do
Disbursing accounts ............................. ............................
do
Assay office..............................................................................
54,216 97
do
Interest accounts....................................................................
18.C49 22— 56,749,293 25
T o ta l......................................................................
Payments during the m onth:
Treasury drafts...........................................................
Post-office drafts........................................................
Disbursing a ccou n ts.................................................
A ssay-O flice...............................
..........................
Interest accounts, v i z .:
In c o in ...........................................................................
In currency....................................... .........................
B alance..... ............................................................
Balance to Cr. Treasurer U. S .................................
Ba'ance to Qr. disbursing accou n ts........................
Balance to Cr. A ssay o ffice.......................................
Balance to Cr. Interest a cco u n ts... . .................
Receipts for Customs in ihe m onth o f Oct., 1868,
Receipts for Customs in the m onth o f Oct., 1867
Increase for Oct., 1868,




$151,249,283 36
$44,263,163
933,797
13,394,559
298,679

55
55
00
45

341,449 41
18,019 22— 59,249,668 18
......................

$91,999,615 18

$79,798,155 57
10 239 952 52
1,961,507 09
91,999,615 18
........................ $10,448,222 94
......... .............
8,082,9S6 27
$1,365,236 6

1868]

COMMERCIAL

CHRONICLE AND

REVIEW.

393

UNITED STATES ASSAY OFFICE FOR OCTOBER.

Statement of business at the United States Assay Office at New York, for the
month ending October 81, 1868:
D E P O S IT S O P G O LD .

Foreign c o in ........................................................ . . . . . .....................................
Foreign bullion. . ...........................................................................................
United States b u llion........................................................................................

$55,000 00
10,000 00
950,000 00
------------------$1,015,000 00

D E P O S IT S O P S IL V E R , IN C L U D IN G P U R C H A S E S .

Foreign c o in ........................................................................................................ $38,000 00
Foreign b u llion ....................................................................
20,000 00
United states bullion (contained in g old ).....................................................
12,000 00
Colorado.........................
4,000 (0
Lake superior..... ................................................................................................
8,000 00
N e v a d a .................................................................................................................
8,000 00
-------------------- $85,000
Total deposits, payable in bars ..................................................................... $220,000 00
Total deposits, payable in co in s ..................................................................... 880,000 U0
-------------------$1,100,000
Gold bars stam ped................................................................................................................... 1,392,737
Transmitted to U. S. Mint, Philadelphia, for coin a ge......................................................
06,424

09
03
23
3

COMMERCIAL CHRONICLE AND REVIEW.
Stringency in the M oney Market -A ctiv ity in the Stock Market—Bonds sold at the N ew Y ork
Stock Exchange Bond—Prices o f Governm ent Securities at N ew Y ork—Course o f Consols
and American Securities at London - M iscellaneous Securities—General M ovement o f Coin
and Bullion at N ew Y ork —Course o f Gold at N ew Y ork —Course o f Exchange at N ew
York.

October has been characterized by one o f those periods o f excessive stringency
in money, which appear to have become regularly periodic in the fall and spring
months. The preparation for the quarterly bank statement caused less disturb­
ance than had been anticipated, owing to the demand for moving the Western
crops having been checked by the refusal o f the N ew Y ork grain merchants to
buy produce at the then current high prices. In the early part o f the month,
however, there was a steady drain of funds to the banks o f the minor cities?
causing a loss o f deposits and of legal tenders, and a firm 7 per cent rat ; of inter­
est. A b o u t the middle o f the mouth the market suddenly assumed a stringent
aspect, the banks having little to lend, and the large balances in the hands of
private bankers, which had for some time kept money easy, finding ready employ*
ment at rates much above the legal limit.

W ith the exception o f the banks and

a few private bankers who, on principle refuse to accept over the legal interest,
lenders obtained during the latter part o f the month rates varying from 7 per
cent in gold to J per cent per day from borrowers on stock collaterals. D iscoun ing operations suffered a severe check.

The mercantile banks have been

unable to meet fully the wants of their customers.; who, however, would have
suffered more in consequence had it not been that their wants were strictly
moderate.

A n unusual amount of paper was thrown upon the street for negotia­

tion, and the very choicest names were sold with much d ificulty at from 8 @ I 2
per cent. The inability of the banks to re-discount grain bills caused the failure
o f some firms W est and at Buffalo, and produced in consequence a heavy decline




394
in breadstuff's.

c o m m e r c ia l

c h r o n ic l e

and

r e v ie w

[N ovem ber,

.

Otherwise, the mercantile community has not suffered materi­

ally ; but there is no doubt an accumulation o f paper in the hands o f dealers
which must cause a heavy pressure for discounts ere long.

The following state­

ment will show the changes in the condition o f the associated banks during the
m on th :
S ept. 26.
Loans and discounts......... .....................................$271,213,000
Specie..........................................................................
12,603,000
Circulation............................................................
34.050,000
D e p o s its ..................................................................... 202,068 000
Legal tenders............................................................
63,581,000

Oct. 31.
$262,365,000
10,620,100
34,253,0' 0
181,94S,000
51,590,000

Changes.
Dec. $8,908,CC0
D ec. 1,OSS,000
In c.
203,000
Dec. 20,120.000
D ec. 11,991,000

The loss of $2 0 ,0 0 0 /'00 o f deposits and of $12,000,000 o f legal tenders, with
a reduction o f ODly $9,000,000 in loans, is quite sufficient to account for the
extreme stringency that has prevailed. I t is not, however, so easy to account
for these violent changes. There has certainly been no outflow of legal tenders,
either to the banks o f other cities or into the Sub-Treasury, at all proportioned
to the reduction shown in this com parison; and it therefore seems impossible to
evade the conclusion that a large amount o f funds has been withdrawn from the
banks and hoarded by speculators, for the purpose o f embarrassing the market
and forcing a decline in securities. The pressure has compelled the banks to
take in for redemption about $11,500,000 o f 3 per cent certificates, within the
month ; which amounts to a contraction of the circulation to that extent, the
Secretary o f the Treasury having determined that the certificates are not reissuable.
The following comparison shows the totals o f the statements o f the N ew
Y o r k banks at the close o f each week in October and at the close o f October,
1867 :
Loans and d is ..
Specie .. - .......
C ircu la tion ....
Depot, t s ...........
Legal Tenders.

O ct. 3.
Oct 10.
O ct. 11.
Oct 24.
O ct. 81. O ct. 2 6 ,’ 61.
$269,553,868 $265,595,582 $264,644,035 $263,519,133 $262,365,569 $246,810,118
11,151,385
9,316,091
9.156,620
9,553,583
10,620,526
6,161,164
34,154,806 34,188 103
34,213 948
34,193,938
34,253,210
33,959,080
194,919,111
189,053,991 188,830,586
186,052,841 181,948.541 113,001,128
60,240,441 60,005,086
58,626,851
56,111,434
51,590,948
56,381,943

T ; e following are the rates o f Loans and Discounts for the month o f O cto­
ber :
BATES

OS’ L O A N S

Call loa n s..............................................
Loans on Bonds and Mortgage..........
A 1, endorsed bills, 2 mos................
Good endorsed bills, 3 & 4 mos........
“
“
single names....
Lower grades.........................................

A N D D ISC O U N T S.

Oct. 2.

Oct. 9.

6 @ —@ 7
7 @ n
8 @10

6 @ 7
-@ 7
6 i@ —
7
7 @ 7-J
8 @10

Oct. 16.
6 @ 7

7

7
6 j@ —
-@ 7
7 @ H
8 @10

7
7
7
8

Oct 23.
@10
—@ 7

@—
@ 8
@ 8
@10

The stock market has exhibited unusual activity, the combined sales at both
boards having amounted to 2,362,000 shares, against 1,800,000 shares in O cto­
ber, 1867. The severe stringency in money has been accompanied with special
efforts to break down stocks, and the attempts have been partially successful
but less so thau might have been expected. Cliques, who are holding very large
amounts o f stock, have secured their position by time loans, extending to the close
o f the year ; which mainly accounts for the comparative firmness of the markets.

c




1868]

COMMERCIAL

395

CHRONICLE AND REVIEW,

The following statement shows the sales o f the several classes o f stocks at both
boards during O cto b er:
Classes.
1867.
Bank s h a re s .....................................................................
1,886
R ailroad “ ..................................................................... 1,536,572
Coal
“ ......... ............................................................
4,080
M ining
“ .....................................................................
19,800
Iraprov’ nt “ .....................................................................
13,200
Telegraph “ .....................................................................
129,734
Steam ship41 .....................................................................
47,337
E x p r’ ss& c“ .....................................................................
47,783

1868.
2,383
2,013,944
6,209
109,189
19,775
44,333
109,833
56,361

T otal—O ctober........................................................... 1,800,392 2,362,027
“ —since January 1 ............................................ 18,151,147 16,906,045

Increase.
497
477,372
2,159
89,3S9
6,575
........
62,496
8,578
561,635
........

D ec
........
........
........
........
85,401
........
........
1,245,102

The several classes o f securities have suffered less from the monetary pressure
tban might have been expected. Governments, indeed, have advanced steadily in
the face of the grow ing stringency and at the close prices were 2 @ 3 per cent
above the opening quotations. The result o f the October elections appears to
have induced among dealers and speculators a good deal of buying, on the assump­
tion that the (lection o f Gen. Grant to the presidency would be accompanied
with a material advance in the price o f bonds.

The fact that bonds have thi3

week declined 3 @ 4 per cent, shows that the over-discounting of future events
is apt to reverse the results anticipated. The speculative transactions have been
large, and the sales at the board for the month aggiegate $23,479,000 against
$17,619,000 for the same period o f last year, as will appear from the following
statem ent:
BONDS

SOLD

AT

THE

N . Y . STOCK E X C H A N G E

Classes.
1867.
U . S. b o n d s ...................
$17,649,500
U. S. n o t e s ..........................................................
3,041,900
St’ c & c i t y b ’ d s ...................................................
3,881,500
Com pany b ’ d s ...................................................
892,200

BOARD.

1868.
$23,479,150
.........
11,145,100
2,031,400

Inc.
$5,829,650
.........
7,263,600
1,139,200

Dec.

$...

3,041,900

T otal—O ctober......................................... $25,465,100 $36,655,650 $11,190,550
“ —since Jan. 1 ................................... 177,t09,730 195,521,090 18,011,360

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 October, as represented by the
latest sale officially reported, are shown in the following statem ent;
P R I C E S O P G O V E R N M E N T S E C U R I T IE S A T

Day o f
m onth.
1 .....

2 .........
3 .........
5 ......
6
7 ......

8

.
...

9 .........
10.........
1 2 ... ..
1 3 ......
1 4 ......
1 5 ....

16

...

1 7 ..........
1 9 ......

20 .....
21.........
22.........
23 .....
24 ......
26..........




NEW YO RK .

r-5 8, IS381.—
-6’ s, (5-20 y rs.) C ou p on ------ ------ ,5 ’ s, 10-40
Coup. Reg.
1S62. 1864. 1865. new . :1S67. 1868. yrs.C ’ pn.
. 113
1 12 * 112* 110
109* 10S* 108*
101*
112* 110 if n o * 108* 108*
. 113* 112* 113
110* n o * 108* 108# 108*
113
104*
■ uax
110* n o * 1C8* 108* 109
113
. USX 113
n o * 108* 103* 109*
1 13 * 110* n o * 108* 109
105
113
■ 113* 113
110* n o * JOS* 1C-8X 109# 105#
105
112* 112* 110* n o * 108* 108#
112* 112* n o w n o * 108* 108*
105*
113
112* 110* n o * 108# 108* 109# 105#
1
13
*
109*
111
108*
109
105#
. 114X
no*
i n * 100* 109* 109*
■ 114* U S X 113* 111
110
115* 114
111* 105*
113X 1 11 * m x 110
n o * n o * 111* 105*
. H 5 X 1 14 * 114* 112
112
. U S X 111* 114* 111* i n * n o * i n * H I * 106#
. 1 16 * 115
114* 112* 112* m *
i n * 112
106*
. 116
113# m x H I * 111
no* m *
113* 111# 112* 110* n o * n o * 105*
. 115*
. 115*
105*
113* m x H I * n o * n o * 111
113* i l l * m x n o * n o *
. 1 15 *
105*
n
o
*
H 3X i l l *
n o * 111
1 05 *
in *
114*
n o * l i o x 105*
H 2X i l l * i n * 110

396

c o m m e r c ia l

c h r o n ic l e

27 ...
114% 114%
28 .................................................................. 114
29 .................................................. 115
113%
30 .................................................................... 114
31 .............................. ................... 115% 114
F ir s t ............................. ...................
L o w e s t .................... ......................
H ig h e s t...........................................
B a n g e .............................................
L ast..................................................

113
113
113%
113%

and

r e v ie w

[November,

.

.......... 110%
109% 110
111
111% 110
110%
111% 111% 110
11' %
111% 111% 110% 110%
......... 112%
110% 111%

113
112% 112% 110
109%
113
112% 112% 110
109%
116% 115
114% 112%
112%
3%
2%
2%
2%
2%
115%
114 113% 111% 112%

108%
108%
111%
S%
110%

108%
108%
111%
3%
111%

105%
110% 115%
.....................
111
106%
111% 106%
108%
108%
112
3%
111%

104%'
104%
106%
2
106%

The closing prices o f Consols for money and certain American securities (viz
U . S . 6’ s 5-20’s 1862, Illinois Central and Erie shares) at London, on each day
o f the month of October, are shown in the follow ing statement :
C O U R S E O F CONSOLS A N D A M E R IC A N S E C U R I T IE S A T L O N D O N .

Cons A m . securities.
for U. S. Tll.O. Erie
mon. 5-20s sh’ s. shs.

Date.
T h u rsd a y ...........
F riday............ ..
Sat ’ d a y ...............
M o n d a y .............
T u ’ sday...............
W ednesday.........
T hu rsday...........
F riday ...... ........
Saturday.............
M ond -.y...............
T u e s d a y ....

94%
94%
. . . . 3 94,^
. . . . 5 94%
94><
94%
. . . . 8 94%
. . . . 9 94*
94 k
. . . 1 2 94%
....1 3 94%
....1 4 94%
___15 9J%
94%
94%
M onday............... ....1 9 94%
___ 20 94%
W ed n esd a y. . . . . . . 2 1 9 4 *

73%
74%
74
73%
73%
71
74%
74%
74%
74%
71%
74%
ac72|
72%
72%
73%
73%
72%

96
97
9(1%
96%
96
95%
95%
95%
96%
95%
95%
95%
95%
96
96%
97
96*
97

31%
31%
32%
32%
32
32
32%
32%
32%
31%
31%
32%
3 2%
32%
32%
82%
32
31%

Cons Am. securities.
for u .s . 711.C. Erie
mon. 5-20s sh’ s. sh’ s.

Date.
T h u rsd a y ............... . . . 2 2
Friday...................... .. .23
Saturday. . . . .
. ....2 4
M on d a y.................. . .26
T u e s d a y ................. .. .27
W ednesday............. . .28
T h u rsd a y............... ...29
F rid a y ....................
Saturday..................

7;J%
73%
73%
73%
73%
73%
73%
73%
74

97
97
97
97%
97
97
97
97
97%

31%
31%
30%
28%
28%
28%
29%
28
23

—

—

—

—

94*
94*

72% 95% 28
74
97% 32%
4%
2% 2%

94%
94%
94*
9 '%
94%
91%
9
94%
94%

%

H ig t g s .................... .
Last

" ..........................

91% 70% 84%
96% 74% 102
45-4 17%
4%
94% 74
97%

28
50%
22%
28

The closing prices o f Five-Tw enties at Frankfort in each week endiug with
Thursday, were as follows :
Oct. 1.
7 6^

Oct. 8
76%@77

Oct. 15.
Ti%

Oct 22.
78X

Oct. 29.
78>8'@ 7 3 X

Month.
76& @ 79^

The following table will s-how the opening, highest, lowest and closing prices
of all th ) railway and miscellaneous securities quoted a t tlie N ew Y ork S tock
Exchange during the months o f September and October, 1868 :
—S eptem berOpen. High. Low.
Railroad Stockg—
43
A lton & Terre I l a u t ....................
46%
do
do
p ref............... ...........
64
65%
63%
23
22%
Boston, Hartford & E rie............. ............. 22%
158% 141
Chicago & A l t o n ..........................
158* 144
do
do pref.................... ............. 144
Chicago, Burl. & Q u in cy.............
do
& Gt. Eastern............... ............. 40
40
38
do
& N orthwest’ n . . . . . . .
84
90%
do
do p ref............... ............. 84
83%
91%
do
& R ock Island............... ............. 102%
104% 100%
82
Cleve., Col., Cin. & I n d ............... ............. 81%
79%
do '& P ittsb u rg........................
89
84%
d o & T o l e d o ........................... ............. 103
103% 100%
Del., Lack & W estern................. ............. 118% 122
118%
Dubuque & S ioux c i t y ................ ............. 80 % 101
80%
do
do pref.............
97
92
52%
E r i e .................................................
46
do pref.........................................
70%
63
H arlem ............................................
124
124
do p ref...................................... ............. 122
122
122
90
Hannibal & St. J o s e p h ...............
87
do
do p r e f.. . . . . ............. 87
90
87




— Octc>Der.—
Clos. ' Open. High. L ow . Clos.
43
63%
23
150
151

42%'

23
150
153
170
40
40 k"
»8
88%
88
ss%
102% 102%
79
79%
84%
84%
102
101%
122
121%
95
101
95
93
46%
47
70
70%
124
122
90
89
89)6

45

40
40
....
27%
23
27%
151%
155% 150
152
156
156
171
170
168
40%
40
40%
92
88%
97%
9S%
88
92%
109% 102
116%
77
80
75
84%
ss%
91%
106%' 101% 103
132
121% 132
95
10)
101
95
95
95
38%
49%
41%
65
65
71
....
89%

87

*89

1868]

COMMERCIAL CHRONICLE AND

..... ..

Hudson R iv e r
Illin ois C entral......................
In d . & Cin in n a ti................
Joliet & h ica g o ...
.......
L ong Island.....................
j ake S h o r e ............................
Mar. & Cincin., 1st pref.
do
2d prel.......
Michigan C en tra l
do
S. & N . Tnd...........
M ilwaukee & St. Paul
do
do pref
Morris & E ssex
N ew J e r s e y ...........................
do
C en tra l........
N ew Y ork Central ..............
do
& N. Hav n .......
N orw ich & W orcester....... .
Ohio & M ississip p i.............
do
do
p r e f ___
Panama ...............................
P ittsb., Ft. W . & Chica___
Reading . ...................... —
R om e
W atertow n
S tom ngton
T hird Avenue
T oledo, W ab. & W estern .
do
do
d o p ie t
M iscellaneous—
Cumberland C oa l
Del. & Hud. Canal Coa’
Pennsylvania C oal
Spring Mountain Coal
Pacific M a il
Atlantic do
B oston W ater i o w e r
C a n to n
Brunswick C ity....................
M a rip osa ...............................
do
p r e f ........................
Q uicksilver...........................
Manhattan G as.....................
W est. Union T elegraph.
Bankers & Brokers A ss—
E xpress—
Am erican...............................
Adams
...............................
United States
Merchant’ s U n io n
W ells, Fargo & C o...............

.

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

<fc

...
........
. ....
..
_
.....
_
....
..
........
.......
..
..........

...

.......
....

140
....

51

142
146
51V
101

iio
86 k'
«7%
96
m%
. . . . 138*,' 134
124
. . . . 120
130%
141
92
____ 92
....... 29
29%
89
369
10i% m x
....... 91
95%
114
83
180
ISO
64
53
78
73V

--

85#

,....
..

.. 128
..
.. ..
........

....

138
143V
51

140V
146
51V

96%

90V

...

35
131

139
MTV
50
96
45
99
25V
9
119
83V
95V
93
05V
134
122V
126#
141V

118
83
77V
84
63
132V
120
123
140
92
28
78
360
107
SDK
114
80
180
53V
13%

118V
83
94
91%
05V
132V
122
120V
141
92
28«
28V
78
78
360
345
109
108V
H3V
93%
114
83
180
59
59V
73
TS

29%
127

33
127

_

897

REVIEW.

139
134If. 137%
145
147V 143
50
50
50
96
96
96
45
45
45
98V 100V
102V
23%
23V
25V
9
10
10
119
118V 119
91
87
83V
93
111
102V
112
93
102#
66
05%
66
134
120V 121
122V 119
120V
130# 123V 120%
142
141V 142

33
128V
210
40
110

118 V 101% 107
21
20
21
15
15
15V
i«V
46
46
49%
47
9
TV
1%
TV
TV
3%
5
5%
5%
3V
8
'-2 %
12%
13 V
20V
23%
22 V
21V
225
225
225
2 0
34
33%
31%
31%
34V
106
104V 105V
15V

48%

........: 1.%
........ %5%

51
5IX
51
25V
31%

41V
48
41
21V
25V

4SV
52%
50
24 V
30

43
52 V
49
23V
30V

32V
79
345
117V
100V

28V
78
33)
10S%
93%

31%
79
3 0
114#
99%

67
78

58V
73V

64
74

36
33
130# 128
220
210
40
40
180V 110

35
129#
220'
40
126%

18%
51V
12V
6V
24#
27V
230
33

15V
47
9
5
13V
21V
230
31

18
4SV
12V
8
23%
24
230
36%

49
52V
50
23%
31%

45V
49%
47
21
28%

46 V
50%
47
21V
28%

The course o f the gold premium has been steadily downward, the price hav ng
opened at 140$ and steadily declined to 133$, at which figure it closed. The
market has been fieely supplied from sales b y the Treasury, so that, at the close
o f the month, the- e was only $1,100,0(10 le s in the banks than at the beginning,
although the payments for customs and the exports combined amounted to
$12,000,000. From a statement given below it would appear that $9,000 000
o f gold has come from unreported sources; about one-half the amount has come
from the sales o f the Treasury and the balance probably represents gold that
has passed out o f private hands into the banks.
The fullowing formula will show the movement o f coin and bullion during the
month of October, 18G7 and 1868, comparatively :
GENERAL MOVEMENT OF

In banks, near f i r s t ..... .............
R eceipts from California.........
Im ports o f coin and b u llion ...
Coin interest paid.......................
R edem ption o f loan o f 1847-MS
T otal reported supply.




C O IN

A N D B U L L IO N A T N E W

YOKE.

1.867.
186S.
Increase. Decrease
$9,496,163 $11,757,335 $2,261,172 $ ...........
2,339,284
902,788
.........
1,436,496
219,666
553,963
334,297 .............
189,357
341,449
152,092 .............
.............
38,300
3S,300 .............
$12,244,470 $13,593,835 $1,349,365 $

398

[November,

COMMERCIAL CHRONICLE AND REVIEW.
. $1,205,529
.
9,082,986

Custom s d u t ie s .........
T otal withdrawn .

$1,602,804
10,448,223

397,275
1,365,237

$ .........
••••«»

. $10,288,515 $12,051,027 $1,162,512

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

Specie in banks at en d ...............................

. $1,953,955
.
6,161,164

$1,542,808 $ .............
10,620,526 4,459,362

$411,147

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

. $4,207,209

$9,077,718 $8,810,509

$—

The following exhibits the fluctuations o f the N ew Y ork gold market in the
month of October, 1 8 6 8:
C O U R S E O P G O LD A T N E W T O R E .

Thursday.............
F rid a y..................
Saturday...............
M o n d a y ...............
T uesday...............
W ednesday........
Thursday.............

. . . . 1 140%
. . . . 2 139%
110%
140%
. . . . 6 110%
..
7 140
. . . 8 139#

Saturday .............
Monday................
Tuesda’y ...............
W ednesday.........
Thursday.............

10
....1 2
....1 3
..1 4
...1 5

Saturday .............
M onday............
.. 19
Tuesday ............. ...2 0
W ednesday......... ..21
Thursday............. . .22

13S%
138%
131%
137
137%
137#
136#
136%
137#
136#
135%

o
£

A
fcfl
E

139% 140%
139%|140%
139% ,140%
139# 149%
139# 140%
139% 140M
138# 139%
138% 139%
13S% 13S%
131% 138#
137 % 138
13 % 137%
137% 138%
137% 137#
136% 137%
136% 137%
136% 137%
136% 136%
136% (135%

to
.9
o
O
140%
139#
140
140
140#
14(1
139%
139
138#
137%
137%
137%
138
137#
137
137%
137
136%
135%

D ate.

Low est

D ate.

Openi’g

60
p
o
p<
O

F rid a y .................... . . 23
S a tu rd a y ............... ...2 4
Monday ................ .. 26
T u e s d a y ................ . . . 2!
W ednesday........... .. 28
T h u rsd a y.............. ... 29
Friday .................. ...3 0
Saturday ............... ...31

'35%
135
133%
134%
134%
134%
134%
134

135
134%
133%
134#
133%
134#
134
133%

Oct. . . .
“
“
“
“
“
“

140% 133% 140% 133#
143% 140% 145% 140%
146 145% 154# 146%
149 146%
144%
189 227% 1223%
140%
156% 145%
149%
121% 122 133# 129%

1868...........
1867...........
1866...........
1865...........
1S64...........
1863 .........
1862...........

S’ ce Jan 1, 1S68 ..

Til

to
E

th

.9
m
O
Q

136 135
135% 134%
131% 134
134%
134% 134%
134% 134%
134# 134%
134 133#

133% 133# 150

133#

The following exhibits the quotations at N ew Y ork for bankers 60 days bills
on the principal European markets daily in the month ot October, 1868 :
C O U R S E O P F O R E IG N E X C H A N G E

Days.
1 ..........................
2 ........................
.
8 ...............................
5 .........................
6
..........................
7 . . . . ....................
8 ..........................
9 ..........................
1 0 ..........................
12 ..........................
13 ..........................
14 ............................
15 ..............................
16*..............................
11 .............................
19 ..........................
20 ..........................
21 ..........................
22 ........................
23 ..............................
24 ..........................
26 ..........................
27 ..............................
28 ..........................
29 .............................
30 ..........................
81 .......................... .

L ondon .
cents for
54 pence.
108%@10s%
10S%@108%
10S%@108%
10S%@109
108%@108%
HW%@108%
I08%@108%
109%@109%
109%@109%
109%@109%
109%@109%
109%@109%
109%@109%
10«%@109%
109 % @ ----109%®
109%@109%
109%@109%
109%@109%
109%@109%
109%@109%
109%@110
HO @110%
110 @110%
109%@1»9%
109%@109%
109%@109%

Paris.
centim es
fordollar.
520 @518%
520 (fl 518%
520 @518%
620 @517%
520 @518%
520 @518%
520 @518%
518%@511%
51S%@511%
511%@516%
511%@516%
51fi%@513%
516%@515
511%@51G%
51!%@516%
517%@516%
516%@515
516%@515
517%@516%
516%@515
516%@515
515 @514%
514%@513%
514%@513%
515 @513%
515 @513%
515 @513%

Get., 1867.................. 108%@110% 520 @513%
Oct.; 1868.................. 103%@109% 521%@515




(60 B A T S )

AT NEW TO RE.

Amsterdam. Bremen.
ceutB for
cents for
llorin.
r ix daler.
40%@40% 19 @19%
40%@40% 19 @ 79%
40%@4 %
79 @79%
40%@40%
79 @:<t%
40%@40% 79 @19%
40%@40%
19 @19%
40%@4»%
19 @19%
40%@40%
19%@19%
40%@40%
19%@79%
40%@41
79%@79%
4l)%@41
19%@79%
40%@41
19%@19%
41 @14%
79%@79%
41 @14% 79%@19%
41 @14% 19%@79%
40%@4(I%
79% @79%
40%@40%
79%@79%
40%@40%
79% @79%
40%@41
79%@79%
40%@41
79%@79%
40%@41
79%@79%
41 @41%
79%@79%
41 @41%
79%@79%
41 @41%
79%@79%
41 @41% 79%@79%
41 @41% 79%@79%
41 @41% 79%@79%
40%@41%
40%@41%

H am burg.
cents for
M . banco.
35%@35%
S5%®35%
35%@35%
3 % @ 35%
a5%@35%
8 3«@ 8 5%
35% @35%
35%@35%
35%®35%
35%@3»
3o%@36
35%@36
80 @36%
36 @36%
36 @30%
35%@36
35%@36
85%@36
35%@36
35%@36
33%@36
36 @30%
86 @36%
36 @36%
36 @36%
35 @36%
35 @ 36 %

79 @79.% 35%@36%
18%@7S
35%@36%

B erlin,
cents for
thaler.
71%@71%
11%@71%
71% @71%
11%@71%
7I% @71%
71%@71%
11%@71%
71%@71%
71%@71%
71%@12
71%@72
71%@72
71%®71%
11%@71%
71%@71%
71%@71%
71%@71%
71%@71%
12% ® . . . .
12% @ . . . .
7 2 % @ .. . .

11%@11%
71X@71%
71%@71%

H%@11%

H%@T1%
7% @11%

11% @ 12%

11% @12

1868]

399

JOURNAL OF BANKING, CURRENCY, AND FIN AN C E.

JOURNAL OF BANKING, CURRENCY, AND FINANCE.
Returns o f the N ew Y ork, P h ila d elp h ia and Boston Banks.

Below we give the returns o f 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.
Loans.
January 4 ... $249,741,297
January 11, .254,170,723
January 18 . . . 256,033,938
January25 . . . 258,392,101
February 1 . . . 266,415 613
February 8 . . . 270,555,356
February 1 5 ... 271,015,970
February 2 1 ... 267,763,643
February 2 9 - . 267,240,678
March 7 ......... 269,156,636
March 14.......... 266,816,034
March 21............261,416,900
March 28 .. .. 257,378,247
April 4 ........... 254,287,891
April 11........
252,936,725
April 18........... 254,817,936
April 25........... 252,314,617
May 2 ........... 257,623,672
May 9 ........... 265,755,883
May 16........... 267,724,783
May 23........... 267,381,279
May 30........... 268,117,490
June 6........... 273,792,367
June 13........... 275,142,024
June 20 .......... 274,117,608
June 27........... 276,504,(36
July 3........... 281,945,931
July 11........... 284,147,708
July 18........... 282,912,490
J uly 25........... 280,345,255
August 1 . . . . 279,311,657
August 8 ___ 279,705,780
August 15 . . . . 277,808,620
August 22 . . . . 275,345,781
August 29 . . . . 271,780,726
September 5 271,830,696
September 12. 272,055,690
September 19. 271,252,096
September 26. 271,273,544
October 3 . . . . 269,553,868
October 1 0 .... 265,595,582
October 1 7 .... 264,644,(35
October 2 4 .... 263 579,133
October 3 1 .... 262,365,569

Circulation.
Deposits.
Specie.
$12,724,614 $34,134,391 $187,070,786
19,222,856
194.835.525
34,094,137
23,191.867
34,071,008
205,883.143
25,106,800
34,0'2,762
210,093,084
23,955,320
44,062,521
213,330,524
22.823.372
34,096,834
217,844,5+8
24,192,955
34,043,296
216,759,828
22,513,9S7
34,100,023
209,095,351
22,091,642
34,Or 6,223
208,651,578
20,714,233
207,737,080
34,153 957
19,744,701
34,218,381
*01,188,470
17,944.308
191.191.526
34,212,571
17,323,367
34.190,SOS
186,525,128
17,077,299
34,227,108
280,956,846
16,343,150
34,194,272
179,851,880
181,832,523
16,776,542
34,218,581
14,943,547
34,227,624
180,307,489
16.166.373
34,114,843
191.206,135
21 286,910
199,276,568
34.205,409
20,939,142
201,313,305
34,193,249
20,479,947
34.183.038
202,507,550
20^,746,964
17,861,088
34,145,606
14,328,531
209,089,655
34,188.159
11,193,631
210,670,765
34,166,846
9,124,830
34,119,120
211,484,387
214,302,207
7,753,300
34,048,721
11,954,730
221,050,806
34,032,466
224,320,141
19,235,348
34,068,202
228,1-30,749
20,399,031
34,004,111
2:6,761,662
20,804,101
33.963.373
228,104,867
20,502,737
33,957,305
24,784,427
31.074.374
231-716,402
34,114,087
223,561,087
22,953,85)
19.768,681
216,435,405
84,137,627
84,112,139
210,334,646
16,949,108
34,170,419
207.854,311
16,815,778
16,150,942
2(>5,489,070
34,139,926
34,044,693
202,824,583
14,665,742
202,068,334
12,603,483
34,050,771
194,919.177
11,757,335
34,154,806
9,346,097
34,188,103
189,053,997
388,880,586
9,186,620
34,213,918
186,05 \ 847
9,553,583
34.193.038
181,948,547
10,620,526
34,253,210

L. Tend’ s. A g. clear’gs.
$62,111,201 $483,266,304
64,753,116
553,8S4,525
66,155,241
619,797,369
67,154,161
528,503,223
65,197,153
637.449.923
55,846,259
597,242,595
63,471,762
550,521,185
60,868,930
452,421,592
58,553,607
705,109 784
57,017,044
619,219,598
54,738,866
691,277,641
52,261,086
649,482,341
52,123,078
557,843,908
51,709,706
567,783,138
51,982,609
493,371,451
50,833,660
623.713.923
53,866,757
802.784.154
57,863,599
588,717,892
57,541,827
507,028,567
57.613,095
480,1S6,9US
488,735,142
62,233,002
65,633,964
602,118,24S
68,822,028
640,663,329
69,202.840
530.328,197
72,567,582
553,983,817
73,853,303
516,726,075
72.125,939
525,646,693
68,531,542 ' 591,756,395
71.847,545
505,462,464
72,235,588
487,169,387
73,638,''61
409,! 31,169
74.051,518
587 004,3S1
72 935,481
482,533,952
69,757,645
610.308.551
67,757,376
480,785,665
65,983,773
470,036.175
63,429,337
493,191,072
63,772,700
518.471.552
63,587,576
620,105,094
60,2j0,4V»
747.61S,516
657.958.155
60,605,0S6
58,026,857
635,516,454
56,711,434
850,584,443
51,590,9 8
809,452,542

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

Legal Tenders.
Date.
January 4 ......... ........... $ 6,782,432
January 1 ' ----- ______ 16,037,995
January 18.........
January .25......... ........... 16,836,937
February 1 ......... ......... .. 17,064,181
February 8 ......... ............. 17.063,716
February 15.. .. ........... 16,949,944
February 2 2 ... .. ........... 17,573,149
February 29
........... 17,877,877
March
........................... 17,157,954
M ar«-hl4.. ......... ............ 16,662,299
March at ............. ........... 15,664.946
March 28............... ........... 14,348,391
A pril 4 ......... .............. 13,208,625
April 11............................ 14.194,385
April 20............... ........... 14,493,287
April SI ........... ........... 14,951.106
May
4 ............... ........... 14,990,832
JVj ay
11............... ........... 15,166,017
Way 18............... ........... 15,381,545
May 25............... ........... 15,823,099'
June 1 ............... ........... 16,184,865
Jane 8 ............... ........... 16.07^,308
J une 15 .............




Loans.
$52,002,304
52,593,707
53,013,196
52,325,599
52,604,916
52,672,448
52,532,046
52,423,166
52,459,757
53,081,665
53,367,611
53,677,337
53,450,878
52,209,234
52,250,949
52,089,780
52,812,623
53,333,740
53,771,794
53,494,583
53,463,225
53,562,449
53,491,364
53,122,521

Specie.
$235,912
400,615
320,973
279,393
248,673
287,878
263,157
204,929
211,365
232,180
251,051
229,518
192 858
215,835
250,240
222,229
204,699
314,366
397,778
3^3,525
280,302
239,371
226,581
175,308

C irculation.
$10,639,000
10,639,096
10,641,752
10,645,226
10,638,927
1<),635‘ 926
10,663,328
10,032,495
10,634,484
10,633,713
10,631,399
10,643,613
10,643,606
10,642,670
10.640,932
10,640,479
10,640,312
10,631,044
10,629,0 5
10,632,665
10,661,276
10,626,937
10,630.945
10,630,979

jje p o s n s.
$36,621,274
37,131,830
37,457,089
37,312,540
37,922,287
37.396,653
37,010,520
36,453,464
35,798,314
34,826,861
94,523,550
33,836,996
32,428,390
31,278,119
32,255,671
33,950,952
34,767,290
35,109,937
36.017,596
36,030,063
36,000,297
36,574,457
42,910,499
43,016,968

400

jo u r n al

of

b a n k in g ,

Date,Legal Tenders,
June
22......................... 15,993,145
June
29......................... 16,414,817
July
G......................... 16,443,153
J u ly
13......................... 16,664,232
July
20......................... 16,747,440
July
27......................... 16,855,894
August 3 ......................... 17,402,177
A ugust 10.......................... 17,792,508
August 17......................... 17,819,300
August 24......................... 17,-14,195
August 31.......................... 17,616,525
September 7 .................... 16,875,409
September 14................... 16,310,565
September 21................... 15.857,032
September 28................... 16,( 38,854
October 5 . . . . ................. 15,677,539
October 12........................ 15,082,008
October 19........................ 14,821,796
Oct .ber 26 ...................... 14,546,736

CURRENCY, a n d f i n a n c e . [November,

Loans.
53,381,820
53,072,878
53,653,471
53,791,596
53,994,618
54,024,355
54,341,163
5J,592,015
54.674,758
55,151,724
55,255,474
55,684,068
55 646,740
55,620,710
55,468,286
55,248,512
55,373,834
55,401,115
54,964,488

Specie.
182,711
198,5(53
233,996
382,524
188,252
195,886
187,281
184.007
196,530
185,1S6
182,268
222,900
209,053
197,207
234,552
195,689
161,282
200,598
176,595

Circulation.
10,631,220
10,639,307
30,625.426
10,626,214
10,647,852
30,622,247
10,623 646
10,622,751
10,624,772
10,623,360
10.622,581
10,622,316
10,613,974
10,620,531
10,607,940
10,608,33 i
10,607,413
* 10,610,700
10,609,359

D eposits.
43,243,562
43,936,629
44,824,398
45,156,620
45,637,975
45,583,220
47 205,867
45,04^,718
46,636,377
45.985,616
46,063,150
45, i 79,109
44.730,328
43,955,531
44,227,127
43.525,479
42,713,623
42,676,626
41,698,881

B O S TO N B A N K R E T U R N S .

(Capital Jan. 1, 1866, $41,900,000.)
Loans.
Date.
, $34,960,249
January 3 .
,
97,S00,239
January 13 .
January 2 0.
. 97,433,463
97,433,435
January 27 .
February 3 .
96,S95,260
February 1 0 ............. 97,973,9)6
February 17 ............. 98,218,828
February 2 4 ............. 97,469,436
March 2.................... 100,243,692
March 9.................... 101,559,361
March 16.................... 101,499,611
March 23.................... 100,109,595
March 30.................... 99,132,268
April 6 ...................
97,020.925
April 13................... 97,850,230
A pril 20................... 98,906,SOS
April 27................... 98,002,343
May
4 .................... 97,624,197
May 11.................... 97,332,283
May 18.................... 96,938,524
May 25.................... 97,041,720
June 1 .................... 97,458,997
June 8 .................... 98116,632
June 15.................... 99,513.988
June 22 .................... 99,389.632
June 29 ................... 99,477,074
July
6 .................... 100,110,830
July 13.................... 101.493,516
July £0.................... 102,480,433
July 27.................... 102,408.771
August 8 ...................102,380.658
A ugust 10................. 103,860,686
August 17................. 103,956,603
A ugust 24................ 103,624,691
Augus- 31................. 103,550,020
September 7 ............. 103,853,110
September 14........... 102,921,733
September 21........... 102,472,936
September 28........... 101,021,744
O ctob r 5 . . . .......... 99.562,844
October 12................. 100,839,722
October 19................. 102,595,177
October 26................. 101,595,576

BOOK

Specie.
$1,466,246
1,276,987
926,942
841,196
777,627
652,939
605,740
616,953
633,832
867,174
918.485
798,606
685,034
731,540
873,487
805.486
577,* 63
815,469
1,133,668
1,186,881
1,018,809
766,553
631,149
561,990
476,433
1,617,638
1,198,529
1,521,393
7S5,641
756,254
634,963
664,693
779,192
7 6 7 ,8 1 9

833,063
748,714
642,793
618,428
505,805
501,008
4St,755

/-------Circulatio

Toni™.
$15,543,169
15,560,965
15,832,769
16,349,637
16,738,229
16,497,643
16.561.4*1
16,309,501
16,304,846
15,556,696
14,532,342
13,712,560
13,736,032
13,004,924
12,522,035
11,005,603
12,208.545
12,656,190
11,962,368
12,199,422
12,848,141

14,188,806
14,368,900
14,373,575
14,564,614
15.195.550
15,H7,307
15,743,211
15,469,406
15,837,748
15,796,05!)
15,753,958
15.554.550
16,310,323
15,813,796
14,975,841
13,174,330
13,466,258
14,0^:2,447
13,923,894
13.601,864
13,009,829
11,915,738

NOTICES,

37,635,406
37,358,776
37.844,742
38,398,141
40,311,569
41,470,376
41,738,706
42.553,871
42,506,316
43,458,654
43,116,765
43,876,300
43,580, S94
43,389,523
44,962,268
43,702,501
42,360,049
41,214,007
40,891,745
40,640,820
30,712,168
30,127,659
39,215,483
38,801,454
38,686,344
37,872,697

158,908
158,812
144,689
141,538
135,799
142,450

25,267,095
25,168,343

&c .

M r. "Van Nostrand will begin, in January, the publication o f anew monthly
mauazine, whose title sufficiently indicates its purpose. I t will be called the
E c lectic E n g in e e r in g M a g a zin e, and will be conducted by Mr. A . L . Holley,
a well-know u American engineer. It will not consist entirely o f original articles;
the pros1ectus explains that the object o f the conductor and publisher is “ to
present within limits o f space and cost that all can afford, the cream o f not less
than fifty engineering, mechanical, chemical and metallurgical publications. The
French and German magazines will be largely transia ed, and papers and discus­
sions tefore societies will be condensed.” This will certainly be a very useful
and interesting addition to our Magazine literature.