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

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AND

COMMERCIAL REVIEW
WILLIAM

B.

DANA

PUBLISHED MONTHLY,

m

I

ifflfir Vo1' 61 **OVEMBER, 1869. No.5. ^

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

Nos. 79 & 81 W illia m St., New York.
C.OHDOK:

S a sipso * L o w

Son & O n., 47 L o d o a t a H i l l




and

T » o b n « b & O o „ 60 P a t b b n o a t i b B o v *

H U N T ’S

MERCHANTS

MAGAZINE

AND

C O M M E R C I A L

R E V I E W .

EDITED B Y W IL L IA M B. D A N A.

Priee $5 p^r Annum.
PUBLISHED ON THE

CONTENTS

OF

T he I ndependence of C anada. . .

I2

th

OF EACH MONTH.

NOVEMBER

MAGAZINE.

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

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

"T he G old C liq ues ..........................................................................................................................
G overnment P urchases of B onds.

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

....

319

. ■ 342

............................................... 344

T he L essons of the C risis ...................................................................................................................

346

T he specie Mo v e m e n t .................................................... ........................................

.......

348

R ailroad E arnings for S eptember

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

...................'.............

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

349

R ailroad C a s u a l t i e s .....................................................................................................................

351

T he L ouisville Co n v e n t io n ........................................

354

R eduction of T axation . . .

.....................................................................................................................858

L iability of R ailroads for T aking Ex t r a F a r e .................................
B usiness C hanges at th e , S outh

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

£60

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

363

A F oreign L oan ................................................................................................................................

866

C oupon and R egistered Bo n d s ..........................................................................................................

368

T he A ssistant T ^ e a s u r e r s h ip ...............

369

A G old P rice for C otton ........................................................................................................ ... ....... 871
T ransportation of B readstuffs

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

C onsumption of C otton in E urope

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

874
.............................................377

A nnual R eport of the C oiton Manufacturers’ A ssociation................................................ 878
T he state D ebt of A rkansas .................. .......................................................... ............................ 382
T he D ebt statement for October ................................................................ ................................... 383
D ebt of N orth C arolina . .......................
T ennesse D ebt

....

....

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

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

T ests of Steel R ails .................................

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

R ailroad I t e m s ....................................................................................................................

384
885
886
887

C ommercial C hronicle and R ev ie w .................................................................................................... 892
J ournal of B anking, C urrency and F inance

.............................................................................. 397

W eb »ie r ’ s S ystem of S pelling and D efining .............................................................................. 398




N O V E M

THE

B E R ,

INDEPENDENCE

1 8 6 9.

OF

CANADA*

BY HON. L. S. HUNTINGTON, Q.C.

In England it is the custom for public men to seize the occasion o f
great gatherings o f the people to address them upon public affairs. I
humbly invoke that custom and your kind forbearance while I address to
you some observations upon what I consider the great question o f the
day. I made some remarks in the same sense in Parliament at its last
session, and was honored with a great deal o f unfriendly criticism, and
I am sure you will forgive me, if I im prove the first favorable occasion
for restating m y opinions with some arguments in their support. 1 may
premise that there is neither disloyalty nor indelicacy in bringing to
your notice, a subject, which deeply interests this country— which has
been discussed both in our own and in the British Parliament— and gener-

* An address delivered in September, 1869, before the Agricultural Society o f the County o f Missiquoi, at Bedford, Canada.




1

320

th e

in d e p e n d e n c e

of

Ca n a d a .

[ November

,

ally b y the Press in both countries— and which I firmly believe is the
necessary complement o f the great scheme o f confederation we have
accomplished. It is true that in m y humble way, I opposed that scheme
in great part, because I was timid about the early assumption o f
sovereignity, which I thought I foresaw, then, must follow. I stated in
my place in Parliament, after the coalition of ’64, that confederation, if it
should really prove, what its promoters pretended, an antidote to annex­
ation, was the first step towards the independence of the country. But
opposition was useless, for confederation was the policy of the em pire;
and imperial influence is always to powerful for Colonial dissent. I have
•accepted the situation in its fullest sense, as faithfully and loyally as if I
originally promoted it. But Ihe first step having been taken, I see
dangers in delay, and I believe it is expedient to take measures for the
severance o f our present relations to the Empire. This is a momentous
step and requires grave consideration. It must create difference o f opinion
and the broadest tolerance should be accorded to discussion. I propose
to speak candidly and dispassionately. I have no party battle to fight
nor personal preferences to gratify. Holding strong opinions as to the
future o f this country, I snbmit them frankly for the verdict o f my
countrymen. Sooner or later the weight of opinion— the majority—
must rule. I am prepared to accept the decision and loyally abide by
its consequences. Such service as I can render will be cheerfully ren­
dered, whether m y country remains a province or becomes an Independ*
ent state. And I profess and feel profound respect for those who
honestly dread the great change we are discussing.
Foremost among the barriers to our progress towards a nationality,
is that noble sentiment o f loyalty to the British Crown, which has so
generally and so happily subsisted among the great masses o f our people.
Can we forget our noble Queen 1 Can we dissociate ourselves from the
glories and the traditions o f the Empire ? British Citizenship is no idle
word, and what could we create for ourselves to surpass it 1 F or a
century past the affectionate colonial eye has rested from afar upon the
British Throne, as the centre o f power, protection and glory. W e have
venerated the Old Land, with a far off colonial adoration,— we have bor­
rowed her thoughts, leaned upon her opinion, and conscious of the plentitude o f her effulgence, wre have been proud to shine through her reflected
light. England has been the land o f our dreams ; even distance lent her
enchantment and Englishmen to us were a superior race. W e have been
proud o f the Old Flag ; not indeed feeling under it an equality with the
Sea Kings, but assured o f its protecton, in the listless life o f dependence
which colonists lead. W e knew i f great danger should threaten, that
Flag would float over us, stayed by an arm stronger than ours, which




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THE INDEPENDENCE OP CANADA.

321

we could not con trol; and that ours would he neither the duty or glory
of upholding it. But dependence begets trust; and to confide in a
generous people is to admire and love them. Can all this trustfulness,
this affection and loyalty be torn ruthlessly away? It deserves at least
respect and tender treatment. But it might not be wise to jeopardize
the great future o f our young country, for the sake o f even so noble a
sentiment, as the H indoo widow sacrificed her life upon the funeral pile.
Governments in our time, are ordained for the prosperity o f the people
and if it can be shown that the virtues o f self reliance and national Man­
hood— habits o f original thought— a condition o f equality with the nations
o f the earth— an immense preponderance o f material advantage may be
safely and permanently secured by a friendly change in our relations to
the E m p ire; perhaps loyalty to the Dominiou might come to over­
shadow the wide-spread sentiment o f loyalty to the crown. The child
nestles with fond dependence to the parental heart; one by one his
habits o f self-confidence 3re acquired as childhood merges into youth or
manhood approaches. W hen at last the age o f majority is reached, filial
affection is not quenched, because the days o f dependence are over. N or
could we plead the tenderness o f the tie as an excuse for perpetual child­
hood. It is from such a point o f view that the L ondon11 Times ” speaks
of Ganada as “ The eldest son o f England.”
But there are those who believe that the Independence o f Canada would
conflict with the Colonial policy o f the Empire, and who taking their
inspirations from the traditions of the past, make England’ s glory to
consist in the vastness o f her colonial possessions. The motto o f “ Ships,
Colonies and com m erce” belongs to an age that is past. Its mention
summons the ghost o f the old act o f Navigation, and the celebrated 29
Acts o f Parliament, for the maintenance o f a Commercial M onopoly—
“ like melancholy ghosts o f dead renown.” It was a system of obstruc­
tion and restriction to Colonial enterprise, in which the Colonists were
regarded as mere contributors to the wealth and glory o f the parent
State. Freedom has made rapid strides in England since those days,
political economy has been remodeled, and political arithmetic has
achieved new systems o f calculation. England did not find that the loss
o f her original American Colonies dwarfed her industries, crippled her
commerce or blighted her prestige as a nation. They have grown to be
a greater people and more profitable customers. The young Colonies
relieved from the restraints o f tutelage espoused great principles and
upheld them thus ensuring their own greatness and, incidentally, the
elevation o f universal mankind.
Englishmen have watched with a
careful eye the progress o f their kinsmen in the untried field o f freedom
and equality. Slowly and cautiously they have copied what seemed to




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THE INDEPENDENCE CP CANADA.

[November,

be success, and have been warned o f the distinctions between liberty
and license; and thus for nearly a century the two great nations foremost in their devotions to the principles o f popular freedom -md consti­
tutional government, have been a constant example and encouragement
to each other. Sometimes there have been rivalries and estrangement.
Quarrels among kinsmen are oftenest bitter and unreasonable, but the
friends o f peace and freedom have trusted, not in vain, to that palladium
o f common principles, which both peoples have cherished ; and thus it
has happened that the dismemberment o f the Empire, which the match­
less eloquence o f Chatam and Burke foretold and deprecated, and honest
old George the Third believed impossible, has proved a great commercial
and political blessing to England and the world. The old motto meant
after all, nothing more than, “ ships, market and commerce.” and these,
under the new relations o f the colonies have been multiplied a hundred
fold.
Now let us like men o f nerve and comprehension apply this lesson to
ourselves. W hat benefit are we to England 1 From what we have seen,
it is manifest, that our sovereign independence would enhance our own
growth and resources, and multiply the advantages she could derive from
our trade. The commercial argument therefore from an English point
o f view is against the connection, and this is why our enemies affect to
despise it. But how are we otherwise useful ? A re we a source o f
strength to her in war ? Do we recruit her armies, or, failing to supply
men, do we pour our means into her millitary coffers ? W e do not even
afford afield for the political patronage o f the British administration of
the day, and there remains to England therefore, but the doubtful presti­
ges o f nominal rule over vast American possessions. W hat wonder, that
Englishmen are growing cold to this advantage, when they reflect upon
the prodigality o f blood and treasure it may one day cost them to main­
tain it? Faithful to her glorious traditions, England w iilact no dishonor­
able part towards us while we remain a portion o f the empire. H er
oft reiterated promise to defend us in case o f war, she will fulfill with the
last man and her last dollar. But the obligation is not the less an
embarrassment because it is binding. And the more far seeing o f her
statesmen for the 'aft fifty years, have looked towards a change o f the
conditions which imposed it. Step b y step, in all the noble and unpre­
cedented concessions they have accorded to us, we have been led cau­
tiously, towards the paths o f manhood and self-reliance; and they have
explained to the British people, ss they watched this problem, o f a free
government, growing out o f their colonial jurisdiction, that the Colonial
State was not what Burke called it, a “ perpetual minority ” but must
expand into sovereign and independent powers. In the great Confeder-




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323

ation debate o f ’ 65, the Hon. John Hilliard Cameron thej^leader o f the
high tories o f Upper Canada, declared, in denouncing the doctrines o f
the Manchester school, that Canada derives no important benefits from
her connection with Great Britain, except in the matter o f defence.
W ith this honest declaration o( an untainted Conservative chief, I
propose to open a brief discussion o f the question. W hat benefit is
England to Canada? I speak as to the future, and I am not unmindful
o f her generosity in the past, and the great heritage o f free institutions
she has bequeathed to us. These were our birthright, but a less magnan­
imous provincial policy would have denied them to us as Colonists.
Sovereign or dependent, Canada will cherish for all time, a grateful
memory o f England’ s gentle and benignant rule over us, while she
taught us the lessons o f constitutional government. F or a’l time, too,
wherever our great populations are descended from her noble stock, we
shall cherish the pride o f kindred, shall claim our share in the glories o f
her literature, her martial powers, and her commercial triumphs. But
these rights are not to us an exclusive heritage, and we but held them in
common with the descendants, all over the world, o f the great Fostermother o f nations; and I am enquiring after the special advantages of
the connection. These are notto be found in our commercial intercourse
for here we are left to compete against the world. It is not that her
abundant capital, attracted b y our loyalty and affection, flows in upon us
because we are a dependency ; to develope our resources, and to . waken
the hum o f industry along our shores; for that capital seeks only a safe
return of its investments, and is oftener drawn where it is better rewarded
among strangers. It is not that the prestige o f the connection gives us a
position among the peoples o f the earth ; for our powers are merely
local and municipal, and bear the taint o f inferiority and dependence.
There remains, therefore, but the one advantage, and we end, as M r.
Cameron began for us,— the advantage of the connection is narrowed to
the solitary matter o f defence; and we shall see, as we proceed, tint even
this is o f doubtful utility. Defence presupposes attack, which we have
only to dread from our republican neighbours. But the difficulties with
them, are always o f an imperial character. The Trent affair, the Alabama
claims, and the Irish Fenian quarrel with England, were all as foreign
to us as the China Seas, and interested us only in their consequences.
It is not true that the same may be said o f Liverpool or Dublin for a
hundred reasons ; but especially because they are part of the British Lies,
and are represented in the British parliament. W e have no voice and
cannot influence the foreign policy o f the empire. There is only for us
the duty o f waiting till war is declared, and the luxury o f becoming the
field o f blood, the theatre o f desolation. Thus England would defend




324

the

in d e p e n d d n c e

of

Ca n a d a .

[November,

us, but from what, but the consequences o f her own quarrels? W e
have no occasion for dangerous controversy with our neighbors on our
own account. Our interests are blended with theirs, and tend to mutual
comity and good will, and the dangers o f conflict will be a thousand fold
removed when British entanglements are avoided. This fact has been
again and again admitted by British Statesmen. During the debate in
the House o f Commons on the defences in 1865, M r. S. Fitzgerald
declared, that if Canada were independent, there would be no cause o f
quarrel between her and the United States. That it could be only
through a desire to strike at England, that America would attack us.
Canadians had not permitted the Alabama to escape or precipitately
acknowledged belligerent rights, and there could be no cause o f quarrel,
except that she was united to England ; and his belief was, that if Canada
were independent to morrow, she would not run the slightest danger of
a contest. M r. Cardwell adverted to that speech, as one, against whose
tone the Government could make no complaint, and the sentiment was
received with the approving hear-hears o f the House. In the same
debate M r. Blight, whose views have not changed, and who is a power
in England at this moment, declared, that should any occasion to defend
us arise, it would not result from anything done by us, but would be a
war growing out o f the relations between the Cabinets o f London and
Washington.
It is true that in case of war, we would be no match for the power of
our neighbors. But our dependence would be in the right and in the
comity o f nations. There is no reason to fear that they would be
aggressive. M exico, Cuba, the South American States have maintained
their autonomy without molestation. And besides, as M r. Cameron
suggested the other day, there would probably be little difficulty in
arranging for a British and American protectorate.
It is to be regretted o f course, that a portion o f the American press
adopt a disagreeable and sensational tone upon this subject, and it suits
the views o f certain journals iiere to give these utterances an unnecessary
prominence. They preach, o f course, the manifest destiny o f annexation,
and they laugh at our independence, as impossible o f maintenance for
six months after its achievement. They say it is impossible for two
peoples, o f the same race and language to live alongside, without the
absorption o f the smaller b y the greater. This is mere vapid assertion.
The experiment o f course was never tried, because the prescribed con­
ditions were wanting.
But what did these people preach about the
Southern Confederacy ? D id they not prate loudly o f her power to
sustain a national exis'ence? And though she failed after prodigies o f
valor and skill, what reasonable man doubts that, could she have




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THE INDEPENDENCE OP CANADA.

325

achieved her independence, she might subsequently have maintained it?
Yet the South was far behind us in her appreciation of freedom and the
true elements o f a nation’ s greatness. It is only poor Canada which is
to be sneered and jeered into clinging to a system of tutelage and inferi­
ority for ever. It was not the fashion to disparage her resources and
poh ! poh ! her aspirations when the Hon. John Brown, in his Confede­
ration speech spread out the map and invited the House to an enthusi­
astic study o f her magnificent geography.
H e traced the island o f
Newfoundland, and found it equal in extent to the kingdom o f Portugal.
Crossing the straits to the main land, the hospitable shores o f Nova
Scotia, stretched out to the dimensions o f the kingdom o f Greece. N ew
Brunswick was equal in extent to Denmark and Switzerland combined.
Lower Canada was a country as large as Franee, and Upper Canada,
20.000 miles larger than Great Britain and Ireland put together. Across
the continent to the shores o f the Pacific was British Columbia, the
land of golden promise, and comparable in extent to the Austrian
Empire ; and then the Indian territories which lie between were greater
in extent than the whole soil o f Russia. There were, he said, in Europe
forty-eight sovereign states, and only eleven with a population greater
than ours. In 1871 we were to stand equal in population to the ninth
sovereign State in Europe. The honorable gentleman further told the
House that in 1793 the commerce o f the sovereign and independent
United States, their exports and imports, did not amount to one-third o f
what ours did at that moment, and there were few states in Europe, and
those with vastly greater population than our own, that could boast o f
anything like the foreign commerce passing through our hands. A nd
France, though the third maritime power o f the world, ow nel only
60.000 tons more o f shipping than British America.
Then the
Dominion, whether for industry or defence, would muster a force o f
70.000 seamen, and in round numbers 700,000 men capable o f bearing
arms. These are not the qualities o f a country unfit for self-govern­
ment and whose future need bear the taint o f inferiority and depend­
ence. I have said that independence is the natural sequence o f the
theories which promoted confederation. Lord M onck alluded to it as
involving a “ New Nationality,” when he first referred to it in a speech
from the throne. British statesmen have invariably discussed it as a
step in the transition our institutions were undergoing. The events
o f the American war, and the attendant possibilities o f a rupture with
that country forced upon the attention o f the British Government the
question o f the defence o f their possessions on this continent. They
promoted the scheme from an imperial point o f view ; and with refer­
ence to immediate relief from the embarrassments o f their responsibili-




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THE INDEPENDENCE OP CANADA.

[November ,

ties here. I cannot better express m y view o f the attitude they assumed
than by quoting from the True Witness of March, 1867, one o f the
best written journals on this continent, and understood to be an organ o f
the Lower Canada Catholic clergy. The writer says : “ W e understand
that the bill for the union o f the B. N. A . Provinces has been rapidly
carried through the three readings in the House o f Lords. In all proba­
bility it will meet the same fate in the House o f Commons ; for in Eng­
land public sentiment is very strong in favor o f a measure which is
looked upon as preliminary to the severance of a political connection
not profitable and often very dangerous to the people o f Great Britain.
Some changes have been made in the Quebec scheme, apparently at the
request o f the delegates themselves, since we may well believe that in
the Imperial Legislature the feeling towards these Provinces is a desire
to get rid o f them altogether as honorably and as speedily as possible.
They profit Great Britain neither materially nor morally. * * * *
A ll that remains for Great Britain is to get rid o f her North American
Provinces as speedily and with as little loss of moral prestige as possi­
ble. The so-called Confederation o f these Provinces presents the means
for accomplishing this, and it is therefore eagerly grasped at by men o f
all parties.” There is 110’ doubt that, more or less directly, such views
were urged upon our delegates while the negotiations were proceeding
in England. Indeed so determined were all parties there to hurry
through the arrangement, that the most solemn remonstrances o f its
colonial opponents were treated with almost universal and contumacious
neglect-. A nd the views o f the statesmen, as might be expected, are
quietly reflected among the people o f England. A ll the organs o f
opinion, the popular Times, the Radical Star and the Tory Standard,
the stately Saturday Review and the snobbish P a ll M all Gazette, with
their satellites all over the kingdom, adopt the same tone ; either that
Canada is an incumbrance to England or they are ready to promote her
independence to-morrow ; and every colonist with whom you speak and
who has had the entre to British society will tell you that the same
feeling pervades the British mind. Adam Smith wrote that no dom i­
nant country could ever voluntarily relinquish its power over a depend­
ency. But he regarded the abandonment in the light of a sacrifice, and
in our case England has already abandoned all the patronage which, in
his view, was a temptation to retain dominant power. But M r. Corn­
wall Lewis, who wrote later, and after modern colonial views began to
permeate England, regarded as probable that a parent state, deriving no
advantage from a dependency, and believing that the dependency was
able and willing to form an independent state, might abandon its
authority for the want o f a sufficient inducement to retain it. There




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might even be positive reasons for a withdrawal, as i f the dependency
contributes nothing to the commercial facilities o f the dominant country,
it is a source o f expense to the supreme government, and may involve
the dominant country in w a r ; and he further says that if the
parent state understands its true relation to the dependency it
will voluntarily recognize independence when there is fitness to
maintain it ; will prepare those for independence who are still
unable to stand alone; and will seek rather to promote its trade,
than its Empire. Englishmen believe that we are able to fulfil all these
conditions and they are cautiously but persistently pressing the responsi­
bility upon us. Need we hesitate to take the hint and prepare to assume
it ? A re our public men men too timid to lead the people up to the
great work which is before them? A re they blind to the signs o f the
times or are they seeking to encourage the people in blindness? It is
time that every Canadian should comprehend the attitude which Eng­
land is assuming ; and that he should calmly and dispassionately admit
there is method in the madness she is accused of. W e have seen that
in a commercial sense or in a sense o f military or national prestige, she
derives no advantage from the connection. W e have seen, that there
is mutual disadvantage— unmistakeable danger to the mother and the
child, in the relations subsisting between them. H ow long can we afford
to cultivate blindness to our true position, and go on simulating an
importance which is deceitful and visionary. The change must come
and it is only manful to prepare for it. It is childish to underate our­
selves or the duties that await us. There are dangers in delay, and it
is our duty to face the grave aspect o f the position. A s we have seen,
the interest and the policy of the Imperial Government are unmistake­
able. Tory and Radical seem for once in accord. N o doubt the respon­
sibility o f ministers in England, the delicacies o f party relations, the
anxiety o f one side to retain office and o f the other side to obtain it,
may temper imperial tactics and stimulate caution and reserve. It may
be that even yet a skilful appeal to the dead past o f the old colonial
policy might rouse a spirit o f resistance among the British masses.
There may be some who still believe that the perpetual minority of the
Colonies is essential to the glory o f ths E m p ire; as there are stiff some
who cherish the traditionary faith that one Englishman can whip two
Frenchmen. This state o f things may delay, but it cannot avert the
crisis. There remains still the Colonial P olicy— the unmistakeable
hand writing on the wall. Even Sir John Young our chief Imperial
officer, an aide, astute, and experienced statesman, has not found it con­
sistent with his high duties to be reticent upon this great question of
the hour. Cautiously o f course, as became his high office, but signifi­




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THE INDEPENDENCE OF CANADA.

[November,

cantly as the representative o f great imperial interests here, he hints at
the transition State, through which our institutions are passing. H e
stated at Quebec and reiterated at Halifax, that Canadian statesmen and
people are the best judges ol their own interests; that their destinies
were in their own hands, and that if they decided upon some change,
the proposition would receive from the statesmen and people o f Eng­
land a generous and friendly consideration. His Excellency does not
belong to that school of thinkers, who preach that pending the great
consolidation here, further changes are not to be thought of. H e does
not tell us that, because Confederation is but half accomplished, we should
shut our eyes to the future, and leave blind chance to accomplish the
destinies of this Great Northern Dominion. H e tells us indeed, in his
Halifax speech, that he had been misrepresented at Quebec, and that he
had been made to talk o f change of allegiance, when he only meant
change o f alliance.
Nobody but the wilfully blind could have under­
stood H is Excellency otherwise.
N obody could have dreamed that
a British Governor would suggest to the people o f half a continent
under his rule the cession o f their territory to a foreign power. But
His Excellency is too good a philologist not to understand the full
purport o f the words he discusses. Allegiance signifies the obligation
o f a subject to his prince or government; alliance suggests original
powers mutually exercised by the parties to a compact, and practically,
therefore, allegiance ceases when alliance begins; and this view is
quite consistant with Sir John Young’s able speeches, as interpreted by
himself.
H e simply did not intend to convey the idea that England
would promote the annexation o f this great country to the vast terri­
tories o f our republican neighbors, while at the same time he felt that
the future had something nobler in store for us than the mere colonial
tutelage of our times. Hence he spoke o f change from such a state,
encouraged by us, by reciting the example of Holland, with smaller
territory and fewer resources, and cheered us with the promise o f the
perpetual good will o f his government and “ alliance” with England,
the “ mother of nations.” The country owes a debt o f gratitude to
His Excellency for this timely aid to the popular thought, for thus
cautiously foreshadowing that brilliant future whose effulgence has
dazzled his timid ministers. It is, moreover, stated, upon what seems
to be undoubted author ity, that when it was intimated to Sir A . T.
Galt that Her Majesty had it in contemplation, in view o f his distin­
guished public services, to confer upon him the honor o f knighthood,
that gentleman took occasion to lay before the Executive a statement
expressing his high sense o f this great honor, but that he felt he ought,
before accepting it, to represent the strong views he entertained in




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favor o f the early independence o f this country. But Her Majesty’s
representative found in this phase o f opinion no disqualification for
royal favor, and H er Majesty was graciously pleased to confer
it.
It would be fair to ask if Sir John Young did not mean to
indicate independence, what did he mean ? H e could not have referred to
our representation in the British Parliament, the only means by which
we colonists could become the equals o f our trans-Atlantic countrymen,
and an impossible concession from the Imperial Government. If E ng­
land were to admit the representatives o f her millions o f colonists to
seats in the House o f Commons, how long would she maintain her m et­
ropolitan and conservative dominance? H ow long before she must
cease to consider colonial questions from an Imperial point o f view, and
find her children assuming the attitude of her masters? Such a solu­
tion o f the eolouUl relationship is undesirable and impossible. Eng­
lishmen would never dream o f it, and if they did, it would not meet
our colonial wants. Perhaps it would be fair to interpret that speech in
the light o f Imperial opinion. It is not to be supposed that PIis Excel­
lency intended to start new and original theories. Let us believe him
to have been in accord with the statesmen o f his country a’.d his time.
In that great debate, from which I have quoted on the defences o f this
country, Mr. Disraeli alluded to the hypothesis o f a desire on the part
o f Canada and the other North American Colonies, for independence;
and to the hour when England might thus lose a dependency, but gain
a firm ally and friend. And again, he said Canada has its own future
before it. W e have a right to assume it. It has all the elements which
make a great nation. IL has at this moment a strong development o f
nationality, and the full conviction on the part o f England that these
Provinces may ultimately become an independent country is to her, not
a source o f mortification, but of pride. Mr. Bright in the same debate
points out the reason why Canadians should feel, if they are like other
Englishmen, that it would be better for their country to be disentangled
from the politics o f England, and to assume the position o f an independ­
ent state. H e believed, from what had been stated b y official gentle­
men in the present government, and in previous governments, that there
was no objection to the independence of Canada whenever Canada
might wish it. If Canada, by a friendly separation, became an inde­
pendent state, said Mr. Bright, choosing its own form o f government—
monarchical, if it liked a monarchy, or republican, i f it preferred a
republic, it would not be less friendly to England. And in case o f war,
Canada would then be a neutral country, and her population enjoy
greater security. In the same debate Lord Palmerston declared that
when the Provinces felt strong enough to stand alone, and desired the




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connection no longer, England would say “ God speed you and give
you the means to maintain yourselves as a nation.” These general
sentiments of the debate provoked no dissent in the House, where all
shades o f British opinion are represented.
A nd though nobody
declared the time had come, Englund was manifestly shaping her policy
to meet it. 1 shall pass over the stronger expressions, the advanced
opinions o f subsequent debates, because time does not permit me to
produce a repertoire o f all the discussions on this subject. But in the
light o f what has gone before it is not easy to misunderstand the
remarkable utterances o f M r. Gladstone, the Prime Minister o f Eng­
land, during the debate in the H ouse o f Commons the other day upon
the subject o f guaranteeing the Hudson Bay Loan. Objections had
been taken to the principal o f colonial guarantees, and M r. Gladstone
fully endorsed them. But he declared that this guarantee was given for
a strictly imperial object, to dissociate England from the inconvenience
o f too extensive territorial p >ssessions.
In former times, said Mr.
Gladstone, the American Colonies were entangled in a vicious system
o f dependence on England. The government wished to engender in
them a spirit o f independence. They wished to wind up the old system
and see the colonies make a new start. That was not to be a begin­
ning, but an end. Alm ost as I speak a confirmatory missive comes to
us across the water— one o f the strangest, as it is one o f the most
important events o f our time. The London Times by the last steamer
is handed me, containing a circular from a meeting o f colonists in Lon­
don, expressing alarm at the new imperial views o f the colonial rela­
tions, and seeking to provide means of inducing the British Govern­
ment to withdraw from its lately declared policy on the subject o f colo­
nial defence; or failing in that, to demand to be released from their alle­
giance, and to adopt such further means as the exigencies o f the new
situation may require. The circular suggests a conference in London
during the next session o f the imperial Parliament of delegates from all
the colonial governments, and the Times vouches for the importance o f
the movement, which it regards as an epoch by the tone in which it
discusses the whole question.
That journal, the most delicate ther­
mometer o f influential opinion in England, argues that the rem on­
strances will be fruitless, and warns the colonies to rely on their own
independence. From all this it appears that the attitude o f England is
sufficiently pronounced and comprehensible, and one o f its effects will
be powerfully to modify and ripen colonial opinion. At first, no doubt,
among our own people, we may witness bewilderment and surprise.
Some will make it a pretext to advance preconceived opinions, and
others may at first turn from it in disgust; but in the end the sober




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second thought o f our countrymen, if the opportunity is afforded them,
will grapple with the subject in a patriotic spirit and with a fair refer­
ence to its bearing upon the interests o f both countries. In this spirit I
propose to consider a little more fully the relations o f this subject to
our Canadian interests, and perhaps to extend in some further detail
points to which I have already adverted. There is a class o f politi­
cians and publicists among us who pretend that until the great scheme
o f Confederation is perfected the talk of further change is a fatal dis­
turbance to the public mind. A nd in a despotic country, where popular
opinion can be dispensed with, where all power rests with the Govern­
ment and the theories o f free institutions are unknown, such a dictum
might be tolerated. It would be consonant with such a view to dis­
courage thought, to forbid discussion, and by all means to smother
whatever should tend to promote an intelligent public sentiment among
the people. They might learn to differ from the policy o f their rulers^
and this might lead to disturbance and alienation. But such a preten­
sion implies insult to a free people and indicates the apprehension o f
those who proclaim it, that they may cease to overshadow and control
them. The Irish difficulties are as intricate as any o f the embarrass­
ments o f our own position ; yet we did not hear that M r. Brighi was
forbidden to discuss the Land question until after the disestablishment
had been perfected. The truth lies entirely in the opposite sense. It is
the duty of public men, whose lives are devoted to the study o f public
questions, to discuss them before the people, that they may be educated
to comprehend the great issues which involve the destinies o f their
country. These writers would conceal, while I would proclaim from
the house-tops, the stern facts of the situation. They would hush the
popular interest— lull the spirit o f inquiry— while I, reposing ample
faith in their honesty and patriotism o f m y countrymen, would excite
the one, that I might lead the other, through the paths of intelligent
research, to the haven o f wise and profitable conclusions. Doubtless
there is too much o f disquiet in the public m ind; but to discuss the
position is not to create i t ; and he must be a crazy thinker who can
suppose that, in view o f all the circumstances, the people are to look on
without thought and without speech ! But who is to control the impres­
sions c f the masses, to limit their thoughts, to curb their restless mental
activities 1 The people are observant; in their own way they read the
signs o f the times, and among them the apprehension is almost uni­
versal that we are on the eve o f radical political changes. You and I,
no, doubt, share the same apprehension. Is it, not, then, the duty o f our
political teachers to cultivate our opinions, to enlighten us and to prepare
us for our duties in whatever awaits us, rather than to silence our inqui-




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ries and leave us to drift in the dangerous currents o f uncultivated specu­
lations? Tae great commercial want o f this country is a profitable
market for the surplus products o f our industry. It was the theory of con­
federation to supply this want by opening up to us the markets of the
sister provinces.
I am afraid the results have not thus far greatly
increased our scanty manufactures. Our natural market is the American,
and we do, and shall suffer, till we gain access to it. N or would a mere
temporary treaty, subject to the caprices o f politicians and entangled with
the embarrassments o f British foreign diplomacy, afford a full remedy.
Manufactures and commerce prosper under permanent as well as liberal
tariff arrangements, and it is in vain that you treat them with gene­
rosity to-day if there is apprehension that you may cramp them to-morrow.
W e require markets; but to confer their full benefits they must be per­
manent, so that capital may acquire confidence and seek permanent
investments here. W ithout this state of things our trade must be lim­
ited and manufactures remain exotics among u s; and, the exodus of our
population remaining about equal to its normal increase, the promise o f
progress is not cheering. W e ought to be manufacturers for this conti­
nent, with our cheap labor, cheap living and wonderful natural facilities.
W e cannot compete against the distance, the skill, the capital and teem­
ing labor of the Old W orld, and there remains for us but the compara­
tively petty business of supplying our own sparse populations in unheallhv
competition with the great manufacturing industries of England and
America; and it often happens in time o f depression, when our struggling
manufactures most need encouragement and support, that we are made a
sacrifice market for those great countries, to the ruin o f our home trade.
Our agriculture is confined to our own markets, or leeched and crippled
by the exorbitant exactions of the American Customs collectors. The
development of our mines, too, is prevented by like inhospiiable exac­
tions, and we are depleted and impoverished by a paper wall of legislative
prohibitions, built along an imaginary line. In this strait it is cold com­
fort to assure us that the neighboring trade suffers equally with our own;
a fact, nevertheless, modified by this difference— that the aggregate of
their commerce is so much greater than ours. It would be idle to doubt
that these influences have contributed to produce the present languishing
trade and universal depression. The Canada Gazette affords the spectacle
o f forty insolvents in one week; and the unfortunate list stretches back
for months past in alarming proportions. The emigration o f common
laborers to the States is something actually alarming; and it could not
be otherwise, for our water powers are neglected, our mines are closed, and
we have no means of furnishing employment to our people. Some wise
statesman has been understood to exult over the fact that many of these




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poor people go away with the hope o f returning; but it is a sad com­
mentary on our hopes for the future if there are to be no means to remove
the stern necessity, the hopeless poverty and want of employment, which
drives them, unwilling, away. W e are told that depression prevails in
the States, which is true; but the manufactures are established there, and
even the limited production goes on, the markets are supplied, and the
poor laborer is employed and paid. It is to him matter of little moment
whether the dividend of the stockholder is small or great, so long as his
services are continued and be is enabled to sustain and educate his family.
H o doubt if a like chance were open to him here he would return to his
native country to-morrow. And for all this, is there no remedy 1 Tell
me which o f your statesmen has proposed one. W e may drag on as we
are, but it were folly to h >pe for any rapid or general prosperity. The
politicians of Ontario, ignoring the outward signs, profess to stand in no
need of relief; but there is a different feeling in Quebec, N ew Brunswick
and Nova Scotia. It is said there is hope o f a new Trade treaty, which
would be a great b o o n ; but it must promise permanence, to create con­
fidence. W e must have free and assured commercial intercourse with
the States, and they need it as well as ourselves. I shall be told these
theories lead to annexation; and it is true that, so far as our embarrass­
ments relate to commercial intercourse, annexation would supply a remedy.
But would it be the best remedy?
I think not; and even if it were
otherwise, would it be desirable or possible o f achievement?
I shall
speak of this later on. But mine is another scheme, and, I think, a bet­
ter one, for a system of continental trade. I would banish the Custom
Houses along the frontier; but I would preserve the imaginary line, as a
broad division between two friendly nations, who desire, while maintain­
ing free intercourse, to maintain their autonomy— to work out their own
destiny and develop their own free institutions. Before the formation of
the Zollverein by treaty stipulations, the commercial intercourse of the
several Berman States was hampered by disabilities and restrictions simi­
lar to those which prevail between us and our neighbors at this moment.
The introduction of merchandise from one State to another was not per
mitted without the payment of duties. In addition to this numerous
prohibitions existed, and the trade relations between the contiguous
sovereignties were fettered by oppressive and vexatious restrictions. But
the inconvenience became manifest and intolerable, and the German
States, while retaining their autonomy, introduced a wiser commercial
policy. They removed those unnecessary burdens which only tended
to clog enterprise and choke the channels o f legitimate trade
between contiguous States. They adopted one consolidated Government
for commercial purposes, one line of customs on the Geographical boun­




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daries was established— one tariff, export and transit, was enforced for all,
and the revenue thus acquired was distributed among the members of the
confederation in proportion to the population of each. This system for a
long series of years has given satisfaction in Germany, and it is con­
ceivable that Canada and the United States might adopt something akin
to it. with mutual and permanent advantage. This would be preferable
to any Reciprocity Treaty, because it would be absolute and permanent
free trade between the two countries. It is preferable again, because it
could be more easily obtained, and would indeed be a favorite arrange­
ment with the Americans. It would save both parties immense expense
along their frontier, and would disband a vast army of smugglers. It
might be effected in six months, and while it would be equally advanta­
geous to our neighbors, it would make Canada a great agricultural,
mining and manufacturing country. It would be popular in the United
States because it would please the free trader, and M r. Greely, the great
protectionist, has promised us his support. It would settle the Fisheries
and give them the free navigation of the St. Lawrence, and it would open
half a Continent to their enterprise and capital. It would give us access
to the markets of 40,000,000 of pecple. It would attract to us unlimited
capital, and our country would be dotted with numerous mining and
manufacturing villages. Our agricultural and commercial interests would
multiply and expand in proportion. Our people would be employed at
home, and multitudes of foreign laborers would be attracted from abroad.
Happiness and contentment would walk hand in hand with the prosperity
of our countrymen. Yc u like the picture, but alas I it has awkward
shades ; and it is set in an ugly frame. We can’ t negotiate such a treaty.
Canada has great interests, but she ha3 no power. She can exercise
no diplomatic funciions, because she has no recognized foreign
relations. She might attempt it and be snubbed, after the manner
o f Prince Edward Island. There were those who sneered at my ignor­
ance when I made this statement in the House, because the British
Minister hjid been instructed to consult us in his negotiations. Do
they think Mr. Thornton would negotiate this Zollverein for us ?
No ! Because it would conflict with the policy o f the Empire. Canada,
as a dependency, can never become a party to a Continental Com­
mercial policy here, because it would involve a discrimination against
British goods. This is reasonable, and we must not complain o f it.
It would, indeed, be a vicious system, which would ignore the
interests of the mother country and discriminate in favor of a foreign
power. And yet how egregiously we are the sufferers 1 There is but one
logical remedy, and that brings me again to the same conclusion— a
ssparation from the parent State. Independent, we might accomplish this




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commercial advantage. Independent, we might take the staff in our own
hands. W e should have foreign relations. W e could negotiate treaties.
In this sense we could not suffer from the change. W e know our own
interests, but British diplomacy on this continent has never been a
success. It could not be otherwise. Imperial statesmen have little time
to think of us. They are better employed on the restless sea o f European
complications. But they are wiser than us in the appreciation o f our
affairs, for they believe and wish that we should assume our independence
and maintain it. W e shall grow to it in time if we are patient and dis­
creet. But the pioneers o f the movement must bare their bosoms for
temporary contumely and reproach. Theie is a class of people among us,
I believe they are not numerous, though the uncertainties o f the times
are calculated to increase them, who are impatient o f half measures, and
who desire immediate annexation to the States. To such people I say^
what advantages would you derive, that the Zollverein would not afford
you? Surely you do not prefer the system o f our neighbors to our own
British responsible system of government. You are not unmindful of the
elevation which national hopes and aspirations would impart to our
people. W h y not join us and work out that system under improved
conditions on this continent ? England would gladly consent to our inde.
pendence and aid us with the perpetual alliance her statesmen have
promised. But could she without loss of prestige and honor consent to
the alienation o f half a continent, and its cession to a foreign power ?
Y ou only complicate the situation by your impracticable demands. Y ou
furnish weapons to the enemy, and you do not serve your own views. 1^
Canada is ever seperated from England, it will be at the cannon’s mouth
if it be not to establish her sovereign independence. It is better for
America, and better for ourselves, that the Dominion should remain
autonomous. The United States territories are vast enough, and she can
well afford to let us try the experiment o f self government. W e shall
work out a system slightly different from her own, but within the bonds
o f friendly commercial relations. I f her flag floated over the whole con.
tinent, where would be the right of asylum in case o f civil disorder ?
And what benefit would she derive from a multitude o f people
who should enter her councils in a spirit o f repining and dis­
content because they had not been left to develop and glorify their own
nationality. And I must say a word to another class of objectors. There
is a powerful party here who represent the United States as overbearing
and agressive. They believe that the inauguration o f a commercial Zoll­
verein would be followed by overt acts for our subjection. I believe this
statement is unfounded. I have no doubt that judicious negotiations
might speedily remove the danger of it, by the guarantee of our status^




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through the means o f a treaty of comity with us between the United
States and England ; and I have no doubt that early steps should be taken
to secure it. But I dont believe it is fair to assert that the Americans are
an agressive people. They are, as a nation, wedded to the arts of peace,
Sometimes fillibusters have departed from their shores, but they have never
succeeded, and they have never been encouraged by their government. A s
I have already said, Mexico, Cuba, and the Spanish American States have
never suffered from an American spirit o f conquest. True, there was a war
with Mexico, but with that nation at her feet, the Americans refused her
subjugation. W ith less cause France invaded that country, and attempted
to monopolize her government. England, by a happy accident, escaped. But
I shall be told that the Monroe doctrine contemplates the unqualified sub­
jugation o f the continent, and that the Americans preach that doctrine as
Peter the Hermit preached the Crusades. So much has been said o f the
monstrosities of that doctrine— so many excellent old ladies have been
alarmed by it— that perhaps we may profitably enquire what it was, and
whether we should really regard it as a standing menace to us and our
childreu * It will, perhaps, startle some people to be told that this doc­
trine was essentially of British origin, and that it was suggested by Mr.
Canning. France had put down the constitutional principles which pre­
vailed in Spain, and entertained the notion o f defraying her expenses by
acquiring Spanish colonies in South America, and England, indignant at
conduct so detrimental to her interests, and with the aversion which Mr.
Canning had ever shown to the Holy Alliance, induced President Monroe
to enunciate the doctrine which has since become so famous. The fol­
lowing quotation, from the late edition o f the Encylopoedia Brittanica,
will explain what that doctrine really was : “Jame Monroe succeeded M ad­
ison in the Presidency, and retained it eight years (1817 to 1825.)
Towards the close of his administration (1823), in compliance with the
suggestion o f his Secretary of State John Quincy Adams, he introduced
into his message to Congress— adverting into the purpose of the European
allies of Spain to assist her in subjugating her revolted colonies in Central
and South America— the assertion of a principle in which the rights and
interests of the United States are ;nvolved, that the American continents,
by the free and independent positions which they have assumed and main­
tained, are henceforth not to be considered as subjects for future coloniz­
ation by any European power.
*
*
*
*
*
*
*
“ With the existing colonies or dependencies of any European power,” con­
tinues the messages,” “ we have not interfered, and shall not interfere. But
with the governments who have declared their independence and main­
tained it, and whose independence we have on great consideration and on
just principles acknowledged, we could not view any interposition for the




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purpose o f oppressing them, or o f controlling by any other manner their
destiny by any European power in any other light than as the manifesta­
tion of an unfriendly disposition towards the United States.”
Congress took no action upon this ; but the spirit o f that body, and of
the nation was in favor o f the Monroe doctrine.
Lord Brougham, in
referring to the President’s declaration, stated that it had diffused joy over
all free men in Europe; and Sir J. Macintosh spoke of it in the following
terms : “ This wise government, in grave but determined language, and
with that reasonable and deliberate tone which becomes true courage pro­
claims the principles of her policy, and makes known the cases in which
the care of her own safety will compel her to take up arms for the defence
o f other States. I have already observed its coincidence with the declara­
tions of England, which, indeed, is perfect, i f allowance be made for the
deeper, or at least more immediate interest in the independence o f South
America, which near neighborhood gives to the United States.
This
coincidence of the two great English commonwealths— for so I delight
to call them, and I heartily pray that they may be for ever united in the
cause of justice and liberty— cannot be contemplated without the utmost
pleasure by every enlightened citizen of the earth.” Thus it will be seen
that the real Monroe doctrine differs entirely from the popular version of
it, that it was suggested and heartily endorsed by England, and that it
conveys no warning or msnaae to us. I entertain no doubt that the
American Government and people would promote, by all convenient
means, the independence of this country, and the intimate commercial
relations I have suggested, and as will have been seen, my doubts are as
few, that England would encourage the arrangement and promote it to
every reasonable extent. But even if improved trade relations with our
neighbors were impossible, the safest way out o f our commercial difficul­
ties is to throw off the restraints of the colonial state. It is conceivable
that the tide of European emigration might, to some extent, be diverged
from the American States to our own rich and extensive valleys of the
Northwest, but for the European prejudice against dependent States;
and especially the Irish prejudice against British sovereignty. Disguise
it as we may, these are serious drawbacks to our immigration policy
and account in some measure for its practical failure.
With the
Northwest peopled, and with facilities o f access to it, an important
market will be opened to us and a corresponding growth of our
manufactures will follow. And as we have already seen, independence
would contribute to the establishment of an assured and permanent
commercial policy; without which capital will continue to distrust
us, and refuse to play its legitimate part in the development o f
our resources. Independence moreover, would create among us that




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spirit of self-confidence and enterprise which prevails so largely among
our neighbors, which has contributed so much to their greatness and
which grew out of the national independence they established. From
such a point of view, I have no doubt that here similar results would flow
from similar causes, and that our powers of expansion would be immensely
increased, by the higher responsibilities of the position ; and though, as I
have shown, our natural market is with our neighbors ; and our exclusion
from them would make our progress towards greatness comparatively
toilsome;— having exhausted all means to establish fair intercourse,— I
should by no means despair of m y country, if, as I am sure will not
happen, that intercourse were refused. But even in that case as in the
other, independence would multiply and accelerate our successes; so that
in any way, the gain to us is in proportion to our growth in manhood
and self-reliance. I have already considered ths probable influence o f
independence upon the character o f the people o f this country.
I have
always lamented the want of a Canadian national spirit. I regard it as an
elementary truth, that no people can respect themselves or command the
respect of others, who have among them no common sentiment of
national piide and devotion. It bears to national life a relation, similar
to the filial attachment of the domestic circle; and is, at the same time>
the glory and the safe-guard o f a free people. It is painful to remark its
absence in this country. You will find national pride here, but it is
an exotic, an importation. It is English or Scotch, Irish French and
American; and the disposition to magnify a real Canadian nationality
is too often and unhappily confined to the official, the placeman, whose
duty and whose interest it is to make a proper display before the
people.
In how many promiscuous gatherings you might sneer the
nationality of the Dominion without exciting an apologist or provoking
an avenger. [But the subject is vast, and grows upon us in the
contemplation o f it.
A full discussion would fill a book instead
of a lecture.
Time hurries me to a conclusion.
This is a great
scheme and your destinies are interwoven with it. I have touched upon
its general features; you can do the filling up at your leisure, if you
do me the honor to reflect upon what I have told you. W e have seen
that the subject is ripe for discussion; and that our vital interests are in­
volved. W e have seen that England is embarrassed by her relations to
her dependencies here, and that Canada is crippled by the restrictions of
the connection. W e have seen how our noblest sentiments of loyalty to
the crown may be merged and intensified into loyalty to the Dominion ;
and how a spirit of national patriotism is indispensable to our growth
in enterprise and self-reliance. W e have seen how the removal o f Impe­
rial tutelage, paved the way for the grow th and expansion of the older




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North American Colonies; and how rapidly, while administering their
own resources, they rose into greatness and power. And we have seen
how England was immensely the gainer, by this providential change of
her relationship to them. I have shown how we might profit by their
example— not through revolt and bloodshed,— for we find England offer­
ing us the boon o f independence, which she denied to them,— and thus
the way is made easy, through peaceful paths, for tbe accomplishment of
our nationality. I have shown that the proposed state is but a second and
necessary step in the great drama o f confederation,— and, that it indicates
no revolution, no violent distortion of our institutions. I have shown that
England desires the change, and that we need i t ; and that it would hap­
pily solve for us great commercial and political problems. I have shown
how it might lead to the cultivation o f amity between ourselves and our
neighbors— how it must tolerate the separate independence of each, while
it embraces the widest freedom of commercial relations. I have warned
the impetuous reformers, who would prize beyond all this, political alliance
— that annexation is impossible,— and the agitation for it an embarrass­
ment; and I have predicted that the Americans will be content with this
change, so important and so easy of achievement; and which unlike its
alternative, annexation, involves no humiliation to England. I have shown
how the vast territories, the important population, and immerse resources
of this Dominion entitle it to a respectable place among the leading na­
tionalities of the earth ; and I have rebuked the critics who sneer at such
aspirations, decry our abilities, and prophecy our humiliation and defeat.
It may be all a dream ; but it is a vision of a great future of wealth and
happiness, of power and glory for our country. And it is a vision which
foietells a fact, and will ere long expand into the region of substantial
reality. I have necessarily left untouched several important branches
of this great question.
Tue army and navy— the diplomatic arm o f
the public service— the whole subject of the public expenditure— whether
the new nationality would increase or diminish it, how best it may be
provided, I have left altogether out o f this preliminary discussion. It is
enough for my present purpose to know that the ninth sovereign power
as to population ; the fourth as to commerce, and perhaps the first as to
territory and undeveloped resources, will be prepared for the fiscal exigen­
cies of its time. 1 have left out o f the discussion the form of the pro­
posed government of the Dominion. It is enough for my purpose to say
that it must be a free system, whether organized as monarchical or repub­
lican, Further on in the agitation, we ought to have abundant oppor­
tunity to contrast the two systems and discuss them. It might happen
that, as with Confederation, our politicians will give us a system, ready
made, without troubling tbe people for opinions, yet the subject has




340

th e

in d e p e n d e n c e

of

Ca n a d a .

[November,

engaged some preliminary attention. The significant fact is stated that
during the negotiations about the Confederation act in England, Sir John
A . McDonald advocated the adoption of the word Kingdom instead
Dominion of Canada. And it is well known that a Canadian Monarchy
was one of the dreams o f the late Mr. D ’Arcy McGee, administered by
an English prince and dignified by a local nobility. And the able organs*
of the hierarchy o f Lower Canada, who have cautiously written in favor
of independence, are understood to favor similar views. On the other
hand, there will be found those who dread the expenses o f royalty, and
who doubt the feasibility of ingrafting feudal forms and pageantry upon
the democratic institutions of the new world. Such people see no charms
in the extravagance o f a court and the re-enactment o f tlie laws of primo"
geniture for the maintenance o f a privileged class. They will tell you
that a system which failed in Mexico with France at her back cannot pre­
vail here among the levelling influences of free institutions. But you and
I may await the current of events, and prepare for the discussion in due
season. It is well for these who agree as to the end to be achieved, to
agree also upou the postponement of disturbing collateral issues. W e
shall find for a time yet a fierce party to fight— composed of those numer­
ous and powerful interests which depend upon the maintenance o f things
as they are; “and, embracing as well, no doubt, a large element of disin­
terested loyalty and honest devotion to the country. I proposed at the
outset to speak from no party point o f view. My theme is exalted above
and beyond the divisions of party; and barring personal bitterness, my
position has been assailed as fiercely by my friends as by my enemies*
But this is not the occasion for recrimination or reply. My dependence is
upon the completeness of my argument. I have strong views as a party
man, but they have no place in this discussion. I might cross the house
to-morrow— if I found my enemies adopting these views, and if my friends
should persist in opposing them. There is a grave responsibility resting
upon our public men. The country is adrift and the public mind is dis.
quieted. Everybody believes the finality is not reached and asks, Whither
are we drifting? Some suspect that the administration hold peculiar
views— but they neither venture to deny nor proclaim them. W hen I
bad the honor first to express these opinions on the floor o f Parliament
ministers treated me to some personal abuse, but upon the main question
they were cautious and silent. There was a profound impression through
the house— but they ventured upon no word o f disavowal. Their opin­
ions were shadowed in mystery and they had not the courage to proclaim
them. Afterwards when this strange phase o f the debate had provoked
some comment from the press, Sir George Cartier did indulge in a gentle
dissent from my conclusions. Nobody denies that a change must come >




1869]

THE INDEPENDENCE OP CANADA.

341

and there remains only the question o f time and fitness and preparation.
I repeat that public opinion is adrift, and the policy o f the administration
o f the day should be openly avowed and vindicated. If they-are opposed
to these views, they ought to set their faces boldly and publicly against
them. If the time has not arrived, and if they want delay and oppor­
tunity to prepare for it, let them openly declare their views and shape
their legislation to maintain them. The public could afford to wait, if
this dangerous uncertainty were dispelled, and if there were a fixed idea
in the popular mind of a definite and desirable future. But grave dan­
gers lurk behind the delays, the doubts and the insecurities o f the hour.
The truth must be told that we are fast losing our hold upon the loyalty
and confidence of our people. Discontent and non-confidence stalk openly
among them ; and the enemies of our future are encouraged to flaunt
their evil prophecies before our very doors. A national policy, pronounc­
ed and progressive, would attract the ear and excite the confidence of the
public. They would listen to your appeal, if you supplied them with mo­
tives and invoked their sympathies, inspired them with national hopes and
aspirations— and their interest in a future they could be proud of, would
be like a sheet anchor to hold them fast to the Dominion. And now gen­
tlemen, I have fulfilled the duty which, I thought, was incumbent upon
me, of addressing you some observations, on this absorbing topic o f the
hour. I have counted the cost and I know the penalty. You have not
misunderstood,— but my enemies, as is their custom, will misrepresent
and malign me. I shall be neither intimidated nor disheartened. I f my
views prevail, some of them will join me before the battle is over. If they
are rejected, I have still performed my duty. Sometimes it requires bold­
ness to speak the truth, but there is no power to stifle free discussion in
this country. You and I have a right to our opinions, and the right to
discuss them. The statesmen of England have set us the example, in the
very citadel o f the empire. The-e is no political disability here,— for the
councils of the nation are presided over to day by men,— some of whom
lately sought to subvert the government,— and others to promote its im­
mediate annexation. They are loyal citizens now, and so are we. Time
changes conditious and works marvels and time will accomplish the great
destinies of this country,— and let us hope, in a manner most conducive to
the happiness of its people. In such a case, though my theories should be
exploded, my hopes would be fulfilled. Let us hope, too, whatever be­
tides,— in this great crisis o f our history,— for an advancing intelligence—
o f brotherhood and toleration among us. And let us prayerfully com ­
mend our country, its future, its people, to the gracious protection and
guidance o f the great Father of Nations,




342

THE

GOLD CLIQUES.

[.November ,

THE COLD CLIQUES.
There is one question which the public are anxiously asking about the
gold cliques, namely : what are the names of its members. Other things
the people have been told with the most ready frankness, but this is as
much a mystery as ever. It is known, for example, that the capital
actually owned was small, and the length o f time in which the clique was
at work was much less than rvas supposed. A competent authority says
that ten or twelve days only elapsed between the first purchases of the
clique at 135, and its closing transsactions at 160 or over on Friday, the
fatal 24th of September. W e are also told that up to the very day pre­
vious, the clique did all its business through its brokers, Smith, Gould,
Martin & Co., who employed other brokers, and carried on their scheme
so skilfully and quietly that they bought 25 millions, at least without
putting up the price beyond 137-J until the 22d September, when they
purposely advanced it to 141-^-, and later to 143^. The 25 millions of
purchased gold is supposed to have cost an average price o f 139, and was
freely loaned to the bears, considerable sums o f money being called up as
margins with every successive advance of the quotations. In embracing
this policy the clique appear to have adopted the maxim of Napoleon,
which was that “ the enemy should always bear the cost o f the war.”
The clique, by lending not only received the money back which they had
paid for it, but got their gold “carried” for nothing, compelled their oppo­
nents to pay them interest for the privilege of “ carrying” it, and called up
margins so as to obtain new funds wherewith to go into the market again
to make fresh purchases.
Up to Thursday, the 23d of September, everything worked like a charm.
But on that day something happened. The Tenth National Bank was
visited by those polite gentlemanly men from Washington, who at once
began to examine the books o f the bank. A cheque for a million o f dollars
drawn by the clique was, it is affirmed, refused certification, as the bank
examiner inspected every cheque which came in and was particularly
careful to see that the law was not violated, which requires, on pain o f
forfeiture of franchise, that no bank shall certify cheques ahead, or shall
lend to any one firm or individual more than one-tenth of its capital.
The,bank machinery o f the clique was thus disorganized. It was useless
to apply elsewhere. Fortune was deserting the gold gamblers. Such
is the story which has been told in W all street, published without con­
tradiction in the newspapers and believed by well-informed persons io
be true. The next movement was to save Gould, Martin & Co., i f possi­
ble, from the risk of failure by a method which we will quote from a




1869]

THE

GOLD CLIQUES.

343

morning paper that has evidently obtained access to authentic informa­
tion and claims to speak by authority. The Sun o f yesterday says:
“ On that Thursday night the clique determined to bring their scheme to a head.
They had gold enough to enable them, as they supposed, absolutely to control the
market; and their game was to press the price to the utmost, and gather in the
margins on their immense loans, or compel settlements at such figures as they
might dictate. In order, however, to carry out this scheme, it would be necessary to
beep on buying gold to make a market. They did not want any more gold, but
rather desired to sell what they had, and garner up their winnings. Gold was
intrinsically worth but about 135, to which price it "'ust inevitably fall when the
movement should be accomplished ; and those to whom the clique should sell at
the high prices to which they intended to force the market, must of necessity be
luine 1. The gold that the clique would have to buy in forcing up the price would
also be a dead loss to them should they be compelled to carry it. In thin dilemma
they apparently determined on playing the stale game of letting some of their own
party break, while the others were to bag the spoils, and hold them until the final
division. This was the scheme, and one of its features was that Smith, Gould, Martin
& Co. were to be kept afloat. Accordingly, on Friday morning the base of operations
was changed from the office of that firm to that of Wm, Heath Co., from which
place all the orders of the clique now emanated, while Smith, Gould, Martin dr Co.,
as a firm, were left to operate ostensibly on their own account.”

How gold was on the following day forced suddenly and amid
unparalleled excitement to 162-]- from which point it fell to 130 in a few
minutes on the announcement of Mr. Boutwell’s intended sale o f four
millions— all this is fresh in the memory of our readers and will form one
o f the most notorious practices of this great gambling fiasco. The
catastrophe had not taken place until the clique had bought, through
A lbert Speyers 38 millions, through Belden & C o. 30 millions, through
Smith, Gould, Martin & Co. 25 millions, and through other parties 15
millions more. The whole amount was 108 millions and was bought in
the space of two or three hours by a clique of desperate men whose
united capital, all told, did not probably reach two millions of dollars,
The example o f such bold audacity was infectious. The 108 millions
which the clique claim to have bought stimulated the crowd in the gold
room and an aggregate of 500 millions of gold is supposed to have been
bought and sold on that memorable Friday forenoon.
These are some o f the facts which the gold clique have allowed to
transpire. They have even been communicative enough to tell the world
that on Thursday night they had gained four millions o f dollars; that on
Friday the operations o f Smith, Gould, Martin & Co. resulted in a loss
of over 3 ] millions, reducing the profit of the clique from 4 millions to
$316,250 if they could successfully carry out their scheme o f repudiating
everybody else and carrying that firm safely through. If, however, the
clique shall be compelled to stand by all their other brokers, including
Speyers, Heath, Belden and others, then they stand to lose on the whole
o f the transaction the prodigious sum o f $13,545,000. The imagination
almost refuses to credit the unparalleled boldness of the schemes which




344

governm ent

pu rch ases

of

gold.

[November,

have been here partially unfolded to our view. If the statements had not
been published with a positive claim to authenticity we should not have
ventured to put them on record. W e do not vouch for the accuracy of
the facts, but they are believed to be at least approximately true. In any
case, there is abundant evidence that this clique movement, like almost
every other “ pool ” that has at any time been organized in W all streetf
has inflicted loss on its members, whatever gains outside parties may have
made by it. The prodidgious extent o f the losses in this case will lend
no small importance to the query with which we began, W ho were the
members of the gold clique?

GOVERNMENT PURCHASES OF BONDS.
T he amount o f bonds purchased by the Secretary of the Treasury and
held by him under the Sinking Fund act, or subject to the future direc­
tion of Congress, has now reached the large sum of $57,773,000. A s
the first purchase was made on the 12th of May, the period in which
this amount has been taken off the market is only about five months.
The table given below contains the details of each purchase of bonds
thus far m ade; showing the date, the total amount offered each time,
the amount of each class of bonds accepted, and the total amount of each
class now held by the Secretary of the Treasury. It has been compiled
with much difficulty, from the fact that the reports published in the
newspapers are frequently erroneous in some particulars, and correct
results could only be obtained by comparisons and further examination*
The facts obtained from the figures below in regard to the general
movement of Government Securities, are of much interest. W e find
that the coupon bonds o f 1867 have been purchased more largely than
any other class, amounting to $14,733,650. Next come the coupon bonds
of 1865 new, amounting to $11,418,850, and next the registered issue of
1862, amounting to $6,355,050. The coupons o f 1862 show the smallest
figures, the total purchased being quite insignificant.
The amount o f each class of bonds held by the Secretary becomes
o f importance in regard to the item of accrued interest, and the additional
purchases made by him to represent matured coupons; the total amount
of January and July bonds, and of May and November bonds, can here
be seen at a glance. It is also desirable that dealers in government secu­
rities should have a record o f the amount of each issue, registered and
coupon, taken off the market.




GOVERNM ENT P CM CIIA 8ES O F GOLD,
1869 I

Date o f
Total Amount
Offered. Taken.
Purchase.
May 12... $3,440,000 $1,000,000
May 1 9 ... 4,116,000 1 ,000 , 0 (0
May 2 6 ... 4,000,0 0 1,009,000
June 2 .
4,146,000 1,000,000
June 9 .. 4,950,000 1, 000,000
June 16.. 3,905,000 1 .000,000
June 23 . 6,860,000 1 620,000
June 27 .
4,930.1 00 1 , 000.000
July 1 .. 3,580,000 1 ,000,000
July 3 ... 5,000,000 3,000,(00
July 9 ... . 5,176,000 3,000,009
July 1 4 ... 9,0*10,0(0 3,009,000
July 1 5 ... 6,383,000 1, 000,000
July 2 1 ... . 12 ,000,000 3,000,000
July 2 8 ... 7,000,000 3,000,000
July 2 9 ... . 4.047,000 1 ,' 00,000
A n ?. 4 .. . 4,212,950 2 ,000 ,0 0 )
Aug. 11 .. . 7,850.(00 2 .000,000
A ug. 12 .. . 2.258,000 1 ,000,000
Aug. 18 . 1.136,200 1,136,200
A ug. 19 .. . 2,177,300
863,800
Aug. 25 .. . 3,905,050 2 , ( 00,000
A ug. 25 .. 2,885,0 )0 1 , 000,000
Sept. 1 . . . 6,731,750 2 , 000,000
Sept. 8 .. . 8,457,050 2 , 000,000
Sept. 1 0 .. . 675,500
675,500
Sept. 11 .. . 1,260,0 0
324,500
Sept. 14 ,. . 5,474,1 0 2 , 000,000
Sept. 22 . . 7,910.000 2 ,000,000
St-pt. 2 3 .. . 2,671,500 1 , 000,000
Sept. 2 5 .. . 9,837,500 3,000,000
Sept. 29. . 8,664,050 8 , 000.000
Ocr. 6 . . . . 9,7 4.750 2,000X00
Oct. 7 .. . . 5,476 000 1.153,500
Oct. 13 .. . 7,219,450 2,009,000

,-------186 2.-------Coup.
300,WO
46,000
635,000
255,000

,-------1865.-------,
Coup.
Reg.

.—1865 n e w .^
Coup.
B eg.

150.666
100,0 0

....

270,< CO

..h .

»-------IS 07.-------- ,
Coup.
Reg.

85,000
225.000
40,000
74,000
257,000

29,000
50,000
20,000

164,000

205,000
306,000

....

285,000
2T5 000
105,000
310,009 185,000
23,000 1,395,000

100,000

8,665

....
....
150,000
555,(00

65,000
60,000
116,0(H)
110,000

110,000

75,600
535,000
461,000
485,(00
144,00)
139,000
84,000

19,400

260,000
8,500

66,000
12,000

350.010
180,000
55,01)0
78,500
442,300

70,000
65,000
515,500
98,000
500
1,000

1,000

29,100

70,650
87,000
187,009
37,509
34,100

11,000

117.500
229 950
223,950

739,500
138,000

100,000

868.000

261,250
272,000
183,800
489,000
7,000
60,000
177,000

101,000

2,060

17,000

54,000

28,000
85,000

299,150
187,500
25,090
80.900
3,500
190,50)
99.0C0
124,000
218.000
192,700
2,000

89,000
108,750
195.000
3,50 I
600,000
114,000
25,000
300

150,000
147.COO
95,000
167,0 *0
156,000
415,000
163,800
299,500
25 000
290,000
87,000
26,050
15,000
18,300
232,000
150,000
69,000
41,2-0
8,500
2,000
1,000

612,500
....
91,800
376,0 0
30,000
356,500
761,000
314,0*'0
25,000
38,000
250,000
56,900
595,30)
326,200
170,-:00
147,200
209,000
5,000
6,100

347,665

421,6o6
1 , 220,000

238,500
190.009
58,500
20,666

23,000

295,50)
723,250
19,665
50,090
188,500

195,666
200,000

13,000
97,000
114,509
316,000
53,000
4',200

200 000
143,066

37,000

256,700
724,000
36,500

5,600 101,000
121,500 336,800
305,450 646,800
28,000 129,000
23,500 1,884,300
165,130C 1,39 >,000
96,100 1.230,700
44.009 233,300
68,000
612.500

169*666
21,930
51,609
437,600
223,000
50,(00
60,750
65,000
15.200
83,: 100
14,6 >0

265,000
770,000
1 , 000,000
1,535,000
605,000
2,45-5,00)
1,315,200
912,000
790,000
170,000
....

....
20^006
20666

50,100
6,000

20,000

30 5U0

250X00

....

185*950
4,000
218,000
262,090
129,950
26,000
83,750
83,800
70,000
435,800
319,700
218J00
746,200
1,155,COO

t

80,000

325,000

44,coo

*
r

125 ',660
50',600

5,o66

8,193,050 4,881,300 4,176,400 6,051,700 2,025,450 11,413,850 2,554,800 14,733,050

*

4------- 1 3CS.-------.
Coup.
Reg.

704,656
50,666

100,000

T o ta l.. ................. 57,773,000 6,355,050 133,000




,-------IS' 4.-------->
Coup.
2K5%
675,000
100 , 0 (0
40,000 225,666
35,000

eoo

14,S00
150,000
165,000
500,000
87,500
e.ooo
26,5viO
31 ',666
15,666

21,000
75*666

....

46,000
10,950
2 000

25,666

6,500

23,000
28,000
73,500
92,500
5,000
17,000

25,666

3,500
534,800 1,597,250

346

THE LESSONS OF THE CRISIS.

[November,

THE LESSONS OF TnE CRISIS.
The late disaster in W all street is to be prized for its lessons if not for
its losses. It was the result o f a speculation wholly factitious and
unnatural. A ring of speculators, with large capital and equal daring,
undertook to control the entire supply o f gold upon the market. Their
operation was not based upon any natural tendency o f the premium;
on the contrary, the common conviction that the piice o f gold must
decline had induced very general sales for future delivery ; and it was upon
these transactions, coincident with the bent of the market, that the clique
undertook to force the premium in an opposite direction. Thus the specu­
lation was an effort to coerce the gold market against its natural direction!
and to this circumstance it owes its failure and its ruinous results. The
more the clique advanced the price, the more unreasonably high did it
appear, and the greater became the apparent inducement to sell. Through
this sort of manceuvering, the time contracts to deliver gold were swelled
to an amount immensely exceeding the stock of gold upon the market.
The sales were made, as we have stated, upon correct views as to the real
value of gold ; but the deliveries had to be made by coin to be first bor­
rowed and ultimately purchased from the very parties to whom it had been
sold ; hence the clique, having the sellers, as they supposed, entirely in
their power, attempted to compel them to buy in the gold from them at
20 to 30 per cent above the figures at which they had originally bought
up the market supply. Had the scheme succeeded, the street would have
had to purchase from thirty millions to forty millions at 20 to 30 per cent
above the price at which they sold it; with the result of a transfer of
about ten million into the pockets of the combination.
Such a speculation can be regarded in no other light than as the most
reckless and licentious gambling; and, as such, it may be taken as an
illustration of the dangers o f illegitimate speculation. The sellers, while
relying upon the natural course o f the premium, could not but be
aware o f the character and power of the scheme against which they were
contending; and, so far, they were as reckless as the clique. A nd this
fact further shows how easilv the spirit of wild speculation may seduce a
large proportion o f the brokers, including firms of respectable standing,
into operations risking an enormous amount of capital upon chances just as
fickle and uncertain as those of the faro bank.
The culmination of this speculation was attended with circumstances
by no means creditable to the business morals of W a ll street. W hen it
was discovered that the combination had drawn the street into engage­
ments involving enormous losses, and that the game was a heavily losing
one, there was in many cases an effort to evade or directly repudiate con­




1869]

THE LESSONS OF THE CRISIS.

347

tracts ; street honor, hitherto the chief protection of Wall street dealings,
being regarded as secondary to the preservation of something from the
common wreck o f fortunes. W e do not pretend to judge whether the
gambling character of the operations does not in some measure palliate
these evasions of contracts ; but we do hold that it is a matter o f profound
humiliation and regret that houses of fair standing in the financial com­
munity, and entrusted with important transactions by the public, should be
found willing to engage in operations leading to such dishonorable expe­
dients for self-protection.
It should be learned from the experience o f those two weeks that the
dangers connected with excesses in speculation do not end with the mere
losses on contracts. In the present case, we have witnessed a derangement
in the whole machinery o f W all street. The recklessness with which deal­
ers, within one or two hours, rushed into contracts covering many millions
of gold, at immense differences of price, o f necessity produced a sudden
convulsion in credit operations. It was seen that many must be injured
or ruined; and the uncertainty as to who might be the losers caused an
indiscriminate caution among the banks and money lenders generally, so
that for a time money could hardly be borrowed upon any terms. Many
of the dealers in gold being at the same time engaged in the stock
business and having outstanding engagements in the Stock Exchange,
the panic instantly spread to the stock market. Stocks fell to such an
extent as to exhaust the margins on which they were carried and were
consequently thrown upon the market in immense blocks, precipitating a
further decline, and involving the weaker class o f holders in ruinous
losses. The extent of injury thus resulting is but very partially indicated
by the failure o f several prominent stock houses. Large numbers of
private holders of securities have been brought to the verge of ruin, and
their stock has been transferred at panic prices to the hands of a wealthier
class, who are about the only parties benefited by the disaster. Opera­
tions naturally tending to these results cannot be too severely con­
demned. They are demoralizing and mischievous to the last extreme;
and those who engage in them cannot be expected to receive the confi­
dence awarded to prudent men of business.
I f the W all street community cannot feel itielf secure against the recur­
rence of these dangerous excesses, it is clear that prudent firms must
recognise the necessity of protecting themselves and their customers by
broader “ margins ” upon speculative transactions than have been hitherto
accepted. In times when speculation was less rampant and fluctuations
less sudden and extreme, a margin of 10 per cent might be deemed an
adequate protection ; but in these days, when cliques o f immense wealth
undertake to make money inaccessible by “ locking up ” millions of cur­




348

[N ovem ber,

THE SPECIE MOVEMENT.

rency, or to acquire absolute control o f the gold premium by buying up
the entire supply on tbe market, or to similarly control the capital stock
of corporations, it is evident that double that amount of margin is no more
than prudence requires. The inadequacy o f the current rate of margins
is o f itself a temptation to artificial speculation ; for it affords an assurance
that when prices have been moderately forced down, so as to impair
margins, a considerable amount o f stock will be thrown upon the market.
An increase of margins would call for enlarged means in attempts to
depress the market, and would correspondingly augment the risks of
parties undertaking such operations; and in this way, while the precaution
would check illegitimate speculation, it would also tend to give the market
much greater stability and to diminish the risks o f dealers. W e can
conceive of no remedy more simple or efficacious against the recurrence
o f such disasters as have recently discredited W all street circles.

THE SPECIE MOVEMENT.
Owing to irregularities in the returns o f the arrival o f treasure from
California, attending the opening o f the Pacific Railroad, we have found
it necessary to discontinue, temporarily our monthly statements of the
specie movement at this port. The Pacific Railroad, however, has insti­
tuted a regular record of its transportation of treasure, so that we are
again enabled to ascertain definitely that item. The advertised sales
of coin by the Treasury enable us now to report precisely the amount of
gold coming on the market from that source ; we have, therefore, the mate­
rial for giving a more complete exhibit of the market movement than has
hitherto been possible; and our monthly statements will be hereafter con­
tinued. These statistics are the more valuable to the readers o f the
M agazine on account of their being presented in a complete form by no
other journal. Below we present the movement, so far as recorded for
each of the last five months :
GENERAL MOVEMENT OF COIN AND BULLION AT N EW YO RK , IN M AY AND JUNE,

Specie in banks May 1.................................................................................................... .
iP m o o n r o r o c o i v n d f r o m

f l f l l i f n r n i n Puy
iv

............ ..............
Bieamer ij j un e..
overland from May 8

Im ports o f specie from foreign ports.
Coin interest paid out.
Treasury gales o f gold,
T otal reported supply.
W ithdrawn for export,
Withdrawn for customs.
Specie in banks J une 26
Total withdrawn *nd in b a n k ..................
Excess o f withdrawals over reported supply.




1869.

$9,267,635

. . . . $ 1, 635,.* o

197,717

1, * 21,811
343,164
185,567

13,681,439
3,131,675
13 000,000-33,597,331
$42,864,966
$2,512,348
2,385/29
10,034,613
8,847,210-23,7*29,700
............... 26,257,140
$43,988,840
1,121,874

1869]

340

RAILROAD EARRINGS FOR SEPTEMBER.
GENERAL MOVEMENT OF COIN AND BULLION AT N EW YORK IN JULY, 1 8 6 9 .

Specie in banks J une 26........... ......................... ... .................................................................. $20,257,149
Treasure received f om California b y steamer........................... .......................
$95,314
“
“
“
overland............................................ ..........
673,042
Im ports from foreign p o r t s ....................................................................................
201,368
Coin interest paid o u t ........................................................... ................................ 17,384,485
Treasury sales o f g o ld ..............................................
........................................ 3,000,000—21,354,209
Total reported supply........— ............ ............................ ................................................ $41,611,349
Withdrawn for e x p o r t... ........................ ....................
............. ............... $6,474,624
Withdrawn for cu stom s................................................................ .................... 10,502,045—16,976,669
Specie in bank July 31.............................................................................................................. 27,871,933
Total withdrawn and in b a n k ................ ..................... ....................................................$44,848,602
E xcess o f withdrawals over reported supply.............................................................. . .
3,237,253
GENERAL MOVEMENT OF COIN AND BULLION AT N EW YO RK IN A U G ., 1 8 6 9 .

Spec’ e in banks July 31
......................................................................................................$27,871,933
Treasure received from California by steam er................................................... $124,977
“
“
“
overland................................................ ..
398, *24
Im ports from foreign p orts......... - .........................................................................
159,927
Coin interest paid o u t ............................................................................................ 1,867,983
Treasury sales c f g o l d ................................... ....................................................... 2,000,000— 4,551,211
Total reported supply........................................................................................- ............. $32,423,144
W ithdrawn for e x p o r t ........................................................................................... $3,027,940
Withdrawn for custom s..................................... .................................
14,3i9,915—17,347,855
Specie m banks A ugust 2 3 .... ,, ......... ............ ...
........................................................ 19,469,102
Total withdrawn and in b a n k s ........................................................................................$36,816,957
E xcess o f withdrawals over reported supply......... .................................................. ..........
4,393,813
GENERAL MOVEMENT OF COIN AND BULLION AT NEW YORK IN SEPT., 1 8 6 9 .

Specie in banks August 28....................................................................................................... $19,469,102
Treasure received from California by steam er...................... .. ......................
$*>1,974
“
“
“
o v e ila u d ............... . ................................. 1,6S7,289
Im ports from foreign p o r t s . . . ................................................... .................... 1,511,487
C om i tere*t paid o u t ............................................................................................ 4,358,338
Treasuiy ales o f g old ........................................................................................... 6,000,010—13,619,088
T otal reported supply............. ............................-...................................................... .

$33,088,190

Withdrawn for exp ort............................................................................................ $1,835,170
W i'h ira w n or custom s........................................................................................ 12,5j4,325—14,339,495
Specie in bauks October 2 ........................................................................................................ 15,902,819
Total withdrawn and in bank........................... , . . . , ............................................... .. .. $30,242,314
E xcess o f reported supply not accounted fo r .................................. ..................................
2,845,876

RAILROAD EARNINGS FOR SEPTEMBER AND FOR TEN MONTHS FROM JAN.
1 TO OCT. 1.
B y special effort in obtaining information direct from the offices of
several companies, we have been able to compile our monthly statement
of Railroad Earnings at a much earlier date than usual.
The general statement is quite favorable, many of the roads showing an
increase over the same month o f 1868, while the decrease shown on sev­
eral others seems to be quite satisfactorily accounted for by temporary
and special causes.
It must be remembered, in comparing the months o f September and
October with the same months o f 1868, that the earnings in those months
last year were very large ; the grain crop was hurried forward at the




350

r a il r o a d

e a r n in g s

for

seftem ber.

[ November,

W est with great urgency, and some of the Western roads doubled their
receipts during that period, but fell olf again quite as suddenly in
November. The prospect for permanent heavy traffic on the principal
lines of railway at the West was never better than now ; the crops are
large and the country in good condition, with an immigration o f settlers
which is developing the lands adjacent to railroad lines with wonderful
rapidity.
In the case o f Milwaukee and St. Paul Road, which shows a consider­
able decrease in earnings for the month, the falling off is fully accounted
for by the circumstance that spring wheat moved to market quite three
weeks later this year than last; a million bushels more of wheat were
shipped over the road in September, 1868, than in the same month this
year. Wheat is now coming forward freely, and the earnings of the last
week in September were very large.
The consolidated lines of the Lake Shore and Michigan Southern
Railway from Buffalo to Chicago show a fair increase in earnings, and it
will be noticed that this is now among the few lines whose figures for
the month exceed a million dollars.
In the table below we give the earnings for the past ten months of
the year, in which it will be observed that all the roads show an increase,
with a single exception.
Two companies are omitted from this statement, no comparison for the
year being possible.
EARNINGS PROM JANU ARY 1 TO SEPTEMBER 3 0 .

Chicago and A lton ........................
Chicago & Northwestern ...........
Chicago, R ock Island & Pacific .
Illinois Central...... .....................
Marietta & Cincinnati..................
Michigan Central..................... ....
Milwaukee & St. P aul................
Ohio & M ississippi....................
St. Louis, Alton <&Terre Haute.
T oledo, W abash & W estern____

1869.
$3,463,230
9.989,433
3,880,809
6,134,7.2
1,017,305
3,435,430
4,812,216
2,034,576
1,450,969
3,107,050

1868.
$2,233,626
9,713,336
3,356,230
5,539,111
922,471
3,256,493
4,454,385
2,163,213
1,381,510
2,860,589

Inc.
$229,660
276,047
474,079
595,611
94,834
178,932
357,831

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

$19,275,296

$36,881,019

$2,522,914

$123,637

Inc.
$15,062

D ec.
$ ....
197,344

69,459
246,461

D ec.

__
128,637

EARNINGS FOR SEPTEMBER.

1869.
3868.
Chicago & A lton...................................................................... $501,258 $436,196
Chicago & N orthw estern.........................
1,823,139 1,518,433
Chicago, R ock Island
Pacific......................................... 579,000
558,386
Cleveland, C ol., Cum & Indianapolis............................. 327,801
287,451
Illinois Central ..................................................................
915,020
889,966
Lake ' hore & Michigan Southern........................................1,239,725 1,2 >7,496
Marietta & C incinnati.....................
149,473
121,519
Michigan Central.. ............................................................ 473,546
456,974
Milwaukee & St. Paul ................
724,514 1.024,045
Ohio & M ssissippi.............................................
292,803
307,122
St. Louis, Alton <fc Terre H a u te........................................ 200,130
396,436
Toledo, Wabash & W estern................... . . . . . . ................
470,720
450,203




20,614
40,350
25.054
32,229
18.054
16,572
299^31
14,319
3*694
20,517

$7,136,129 $7,504,277 $193,046 $511,194

1869]

RAILROAD CAStTALlTlES.

351

RA1IR0AD CASUALTIES.
T he lately published report o f the State Engineer and Surveyor for the
year 1868, contains many interesting facts concerning the railroad system
of New York and its practical management by the companies controlling
the various lines throughout the State. Among these the statistics of
accidents resulting in the killing and wounding of passengers and otheis,
are worthy of especial attention. For the year ending Sept. 30th, 1868,
the Erie Railway carried 2,194,348 passengers. The number o f miles
run by passenger trains was 2,471,594, and the average rate o f speed
per hour was 26 miles for ordinary trains and 30 for express trains. The
length of the road, including branches, is 821 miles. During the year
29 passengers were killed and 86 injured on this road, the greater part
of whom were the victims o f the memorable disaster at Carr’s Rock, on
the 14th of April, 1868. The New York Central during the same period
carried 3,679,150 passengers; its passenger trains running an aggregate
of 1,990,150 miles, at an average speed of 30£ miles per hour. The
length of the road is 297.75 miles. During the year no passengers
were lulled, and only six injured. On the Hudson River Road during
the year the number of miles run by passenger trains was 805,628, and
the average speed 31-J miles per hour. This road is 144 miles long,
and has double tracks for the entire distance. O f the 2,129,288 passen­
gers carried, none were killed and only five injured. The New York and
New Haven Railroad carried during the same period 2,192,939 persons,
running 657,897 passenger trains, at an average speed of 31-J miles an
hour. This road is 62J miles long. During the year no passengers were
killed, and but three injured. On the R om e, Watertown and Ogdensburg
and the New Y ork and Harlem roads, carrying respectively 497,333 and
1,667,578 passengers, none were killed or injured during the year. These
figures show that the main lines of the State are well and carefully man­
aged. Leaving out the Erie Road, on which 26 were killed and 72
injured by the one unfortunate accident before mentioned, the returns
show that on four other roads above named but one passenger was injured
for every 316,000 miles run. Counting in the Erie, the ratio is one killed
for every 194,871 miles, and one injured for every 5S,252 miles traveled
by passenger trains dating the year.
Considering the extent of the business done on our principal roads, and
tie average speed at which trains are run on them, the number of killed
and wounded is comparatively small. Unfortunately, however, this can­
not be said of American roads in general. Scarcely a day passes without
the telegraph bringing information of one or more accidents, more or less
serious in their consequences, that have occurred during the preceding




3

352

r a il r o a d

c a s u a l it ie s .

[November ^

twenty-four hours. Not long since we.noticed seven o f these announce­
ments, reporting the violent death or severe injury o f fifteen persons in
all, in one issue of the daily journals of this city. So frequent, indeed, are
these so called “ accidents” that, unless the attendant circumstances are
peculiarly aggravated, or the list of killed and wounded exceptionally
large, they seldom attract more than a passing notice outside of the
neighborhood where they occur. The statistics o f railway casualties
show that, during a period o f fifteen years from 1853 to 1808, inclusive,
the number killed on the railroads o f the United States was 2,953, and
the number wounded 10,500. W hen to this aggregate we add the
number o f casualities occurring this year, it will be seen that railroad
travel in this country is dangerous in tbe extreme.
Clearly, there is something wrong in the system o f management
adopted on most of the roads in the United States that should be promptly
and effectually remedied. Such frightful tables of mortality are unheard
of throughout Europe. It is stated that during a period of nearly four
years but three accidents have occurred on European railways, resulting
in injury to the peisons or property o f passengers; and in each o f these
instances the causes were practically beyond the control of those respon­
sible for the management of the roads on which they happened. Suppos­
ing our railroads to be well built and properly equipped, as a due regard
to the safety of passengers requires they should be, it is evident that the
greater degree o f danger attending railroad travel in the United States
than in Europe is mainly attributable to the w-ant of a proper system <.f
management. Experience has shown that travel by rail can be mad.;
both safe and expeditious, as it is in Europe at the present tim e; and
this is accomplished by very simple expedients.
First and foremost, perhaps, is tbe fact that the managers of all public
works in Europe a^t held to a stricter accountability by tbe government,
as well as by public opinion, than they ever have been in this country.
This is seen in many ways. In the matter o f punctuality alone, the
contrast between tbe operations o f European and American roads is
marked and striking. Every trip is made with unfailing regularity
according to the tables, in consequence of which no time is lost by delays
to be made up, as too often happens in this country, by sudden dashes
o f extraordinary and dangerous speed. So great is the vigilance exercised that it is known, at any moment, precisely where a train i s ; and
no train is allowed to start out on a venture, without its being certain
whether the way is clear 01 not. As the tracks are always double, direct
collisions are impossible, and as the position and movements o f every
train are known, obstructions are always removed in time to leave a
elear track for passenger trains. No doubt the principles of this system




a

N

±

1869]

RAILROAD CAStTALITIES.

353

of management are nominally adopted on every American railroad; but
the want o f greater vigilance in the observance of rules and regulations,
on the part of engineers and conductors, and the willingness to take risks
which, even if unsuccessful and disastrous, will be allowed to pass unpun­
ished, have led to most o f the accidents occurring on our roads.
Another reason for the greater safety o f railway travel is the careful
police of every part o f the roads. Experienced and trustworthy watch­
men are stationed at frequent intervals along the road, whose duty it is
to see that the section of track under their charge is safe and free from
obstruction. In this important particular the management o f most Ameri­
can roads is essentially defective. Not long since an accident occurred
on the Pennsylvania Central, killing two men, seriously injuring a num­
ber of others, and destroying much valuable property. The cause o f the
disaster was a huge fragment of rock that had fallen on the track, and
remained there undiscovered until the train was wrecked on it. In
Europe such an accident never has and never could happen. Every foot
of road is there inspected before and after the passage o f each tr- in,
and the engineers are never out of sight o f one o f these vigilant watch,
men for a longer time than two or three minutes. Consequently we
never hear of stray cattle, fallen rocks or other obstructions in the way
of passing trains, no one tampers with the rails or misplaces the switches
nor are draws left open, or culverts, bridges or embankments washed
away, without the fact being known in time to prevent accident. In the
United States there are thousands o f miles o f railroad that are not
carefully policed oftener than once a week, if as often; and it is only a
wonder that on these long stretches o f neglected track accidents are not
of more frequent occurrence. The cost of maintaining a large force of
intelligent and experienced men as watchmen is unquestionably great;
but we have no doubt that the amount thus saved in the prevention
of needless and costly accidents on American roads would more than
cover the expense thus incurred by the companies.
When an accident, however slight, occurs on any of the railways
throughout Europe, a thorough and searching investigation is at once
instituted by the public authorities, as well as by the officers o f the com­
pany on whose line it happens, and when carelessness or negligence is
proved, the guilty officials are punished. On one of the French railroads
the misplacement o f a switch, which turned the train from its proper
course, was followed by the sentence of the switch-man to a heavy fine
and term of imprisonment, although no one was seriously injured. In
another case a division superintendent was sentenced to three years’
imprisonment for the delay of a train, resulting in a collision by which one
passenger was killed and others wounded. In this country the heaviest




354

th e

l o u is v il l e

c o n v e n t io n .

[N ovem ber,

penalty awarded for such offences would be dismissal from the employ
of the company— although such a disgrace would not prevent the guilty
person from engaging elsewhere in the same position. Or, perhaps, a
coroner’s jury will be empanneled to take evidence, and the result will be a
vote of censure. An illustration is seen in the case of Griffin, the Erie
engineer, whose carelessness caused the recent disaster at Mast Hope,
and who was lately acquitted after a formal trial, in which his guilt
was clearly proved by the evidence adduced. Pecuniary damages are
sometimes awarded to a few of the principal sufferers, who can afford to
sue the companies, but beyond this nothing is ever done and the matter is
quickly forgotten.
W e do not expect too much o f the railroad companies. It is unreason­
able to demand that railroad travel shall be attended with no risk ; but it
cannot be denied that it may be made far safer than it now or ever has
been in the United States. The fact that, with but few exceptions,
accidents are prevented in Europe, and that in these cases somebody
can be held responsible and punished accordingly, shows that with a system
of management equally perfect in all its details, the number o f casualties
occurring on American Railroads might at least be greatly reduced.

TIIE LOUISVILLE CONVENTION.
Before the war, Southern Commercial Conventions were common
enough. There was, however, much of fretfulness and dissatisfaction in
them, and they were most emphatically sectional. Since the war, this
has all changed, several commercial conventions having been held at the
South, but in each there has been manifest far more of a nationd spirit
than had animated their predecessors. The last great gathering was
at Louisville, Ky., on the 13lh inst., to which delegates appeared from
29 States.
O f the whole number, (more than 520 iu all,) 277 were
from Southern States, 107 from Western, and 32 from the Eastern and
Middle States. The Convention had for its presiding officer Ex-President
Fillmore, and on the roll o f its delegates were many prominent merchants
and representative men of business from the various States from which
delegates appeared. There was manifest a generous patriotism, a com­
prehensive public spirit, a forbearing disposition and an intelligent view
o f the great cereals o f the country in the development o f its resources, so
that all sections should be benefited. I f local or sectional ideas obtruded
themselves, or if politics appeared, these opinions were checked or modifiedi
and the action taken was for the good of all.




18G9]

THE LOUISVILLE CONVENTION.

355

In arranging the business of the Convenlion, committees were appointed,
and reports were made on the following subjects:
1. On Southern Pacific Railroad.
2. On Railroads in General.
3. On Direct Trade with Europe.
4. On Immigration.
5. On Finance and Banking.
6. On Manufactures and Mining.
7. On the Mississippi Levees and Improvements.
8. On the Tennessee river and its Improvements.
9. On River Navigation, Canals and other Improvements.
10. On Agriculture.
11. On continuous Water Communication between the Missis ippi river and the
Atlantic se .board.
12. On the removal of obstructions to a cheap and easy outlet through the
Mississippi into the Gulf.
13. On Miscellaneous Business.

W ith regard to the Southern Pacific Railroad there were three reports,
one from a committee of the late convention at Memphis, and a majority
and minority report from the committee appointed by the present conven­
tion. A vast array of statistics was given, and the whole subject was
reviewed at great length. The conflicting views related chiefly to the
termini of the road, and to the parallel of latitude in which it should be
constructed ; but the route finally determined upon was on the 32d
parallel, leaving to the legislation o f Congress the terminus on the Mis­
sissippi river. Closely allied to this question was a discussion of the
influence o f this railroad in inducing immigration, in opening new markets
and in putting an end to the difficulties with the Indians. The resolu­
tion embodying the views of the convention upon this point was as fol­
lows :
R esolved , That this convention memorialize Congress to grant the right o f way
and such subsidies as may seem just to a Southern Pacific railroad from San Diego,
Cal., via the junction of the rivers Colorado and Gila, along the valley of the Gila,
and south ol the same to El Paso, on the Rio Grande, and thence to a convenient
point near the 32d parallel of north latitu ie east o f the Brazos or near that river in
the Slate of Texas; to which main trunk feeder-roads may be built from Leaven­
worth, St. Louis, Kansas Cily, Cairo, Vicksbur/, Memphis, N -w Orleans and Galves­
ton on the east, and Guaymas, Mazatlan and San Francisco on the west, and such
other roads ou the east or west as may be desired, with equal right of connection
to all.

The second subject in the order of business was “ Railroads in General.”
The committee wisely refrained from specifying local objects. They recom­
mended co-operation in railroad management, the remedy o f breaks and
obstructions in railway lines, the connection o f tracks and uniformity of
guage. In their resolutions they urge the building o f railroads to the
Gulf ports, in order to make an outlet for produce which seeks a market
in the West Indies, in Mexico and South America, and they advocated




/

356

th e

l o u is v il l e

CONVENTION-,

[November,

the system of low fares to persons intending a settlement.
They also
recommended the construction o f the Northern Pacific Railroad.
“ Direct trade with E urope” was the third subject which engaged the
time o f the Convention, we have not the space to give any portion of the
interesting discussion upon this point.
The Committee recommend the
organization of steamship lines between this country and Europe, and the
subsidizing o f the lines by Congress. They ask for a modification of the
navigation laws so that Americans may purchase foreign ships; they
demand the abolition of the tariff on shipbuilding material, and they ask
Congress to declare ports o f entry all cities in the W est and South which
have a populat:on of 100,000 and upward.
The general subject o f “ Immigration” attracted much attention and
elicited a spirited debate. The convention favored the introduction of a
million Europeans, and a comprehensive plan o f enlightening Europe upon
the advantages ot the region below 36° 30', and of making known the
climatic conditions and industrial resources was reported. As the Gen­
eral Agent in this matter M. F. Maury was recommended.
Chinese
immigration provoked a marked dissonance of opinion. It was concluded
to leave that matter to the States and to private interests. The debate on
this question was mainly confined to Southern delegates, and considering
the fact that the Convention at Memphis was so decidedly in favor of Asia­
tic labor, the result reached here shows perhaps not so much a change in
Southern sentiment as it does the general discussion of the subject and
the expression of hostile views by men who were not members of the
Memphis Convention, but who have reviewed its action.
On the subject o f “ Banking and Finance” the Committee made the
following report, the recommendations o f which it will be seen, coincide
in the main with the views and plans expressed and proposed by Senator

^

\

Sumner:
1. The wealth of a country consists i> the net value of its productions, and all
financial measures must be determined in the light o f this fact.
2. Currency is not a product of a country, and is not property, but oaly a medium
to facilitate the exchange of property.
8. Currency values of property and an irredeemable currency regulate themselves
by each othe-, so that except temporarily, the amount of irredeemable currency in
circulation in no manner regulates the ease of the money market, or influences the
rate o f interest.
4. .An irredeemable currency retards production by the fact that it measures the
value of properly so unsteadily as to destroy confidence. It prostra'es industry,
unsettles society, and should be and can be banished from the nation’s exchanges ;
therefore
Resolved, That Congress be requested to enact at once :
1. A. free banking law, with efficient and certain measures for prompt redemption
of currency, with a proviso that currency is to be issued only as fa?t as legal tender
notes are redeemed and destroyed until specie payments are resumed.
2. Direct the Secretary of the Treasury to cancel and destroy all legal tender
notes that come in his possession as fast as the net income of the Government will




^

1869]

THE LOUISVILLE CONVENTION.

357

allow.
In case national bank currency is applied for faster than it can be fur­
nished under the conditions berestated, preference to be given first to the South
and second to the West, until the whole currency in circulation be equalized upon
the basis of population.
3.
Direct the Secretary of the Treasury to regulate all his actions by the wants
and necessities of the Government, and leave the people to manage their money
markets and their business in their own way.

The proceedings of a meeting of Southern gentlemen held in W ashing
ton in July were submitted to the Convention. These gentlemen pro"
posed to planters to sell their products for gold only, and asked for the
establishment o f banks under State laws on a gold-coin basis. In regard
to taxation the Convention asked for a repeal of the law of 1801, pro*
viding for a Direct Land Tax. The tax, they allege, is not imperatively
needed by the Government, and its collection would fall heavily upon
the South. In the North and West the tax was collected at the time, but
the condition of affairs at the South required it to stand over until after
the war. On tbe subject o f revenue the Committee recommend the m od'
ideation of the tariff. They also said that “ the present system of Inter­
nal Revenue taxation should be simplified so tliat tbe revenue shall he
derived from a few sources, and those such as tax the follies, extravagan­
cies, and vices of the people, rather than the honest industry of the
country. They recommend that the Internal Revenue should be collected
from taxes upon the following articles : Licenses, stamps, tobacco, liquors
distilled spirits, and from land sales, fines, and forfeitures.”
From these sources they anticipate a revenue o f $327,000,000, a sum
deemed more than sufficient to meet the expenses of the Government to
pay the interest on the debt and to provide a sinking fund of one per
cent, which, in thirty years, would liquidate the debt.
The Committee on the “ Mississippi Levees” favored the construction
o f these works on a general plan to be inaugurated by the Federal Govern­
ment. It was remarked that under the former system o f labor the planter
had often scores or even hundreds of hands whom he fit once could set
to work if occasion occurred, but that now no such force was at his dis­
posal.
A report was also made in favor o f the improvement of the Tennessee
river, the removal of obstructions from the Mississippi, and such a regu­
lation of bridges as will secure navigation from needless obstruction, and
at the same time afford reasonable facility' for railroad and other traffic
across these streams.
The report on continuous W ater Communication between the Missis­
sippi River and tbe seaboard was in the interest of what is called the
“ Central Water line,” through Virginia. But that part of the report
was modified and altered and no State interest was especially commend­




353

REDUCTION OS' TAXATION.

ed. The Convention, however, was dicidedly and with good reason in
favor of cheap transportation so as to bring the products o f the West
into safe competition witii production elsewhere in the governing marketsof the world.
The twelfth subject in the order of business above given, was treated
of by a Committee “ on Harbors, Channels and Bars of the Atlantic and
Pacific Coasts.” They offered the following preamble and resolutionswhich were adopted:
"W h k r e a s , All the harbors and bars and navigable waters of the Gulf and Atlantic
coast belon? properly to the United States, by purchase of -Louisiana and Flori la fromSpain, and by the articles of annexation o f Texas ; and by treaty with the mother
country ; and whereas, the development of the industry and creation of trade over
the countries, Slates, and Territories are dependent upon these harbors and bars
therefore be it resolved,
1. That it is the duty of the Government, o f the United States to protect and im­
prove these bars and harbors to an extent indicated by the piesent and prospective
trade of the same.
2. That in consideration of the foregoing premises, and the reasons assigned for the
same in the accompanying report, this Convention does recommend to the Govern-,
meat’s fostering care and improvement, the bars and harbors at the ports of Wilroingtt n and Savannah • Mobile Bay, at Atchafalaya Boy, at the Sabine Pass, at Gal­
veston Bay, at the mouth of the Brazos River, at Pa-s Cayallo and at Pass Aransas.

This concludes a general review of tbe action o f this Convention, which
adjourned to meet next year at Cincinnati. It was as we have said, har­
monious, and though it is without power, yet its recommendations, as the
mature thought of men of business, are worthy of careful study and con­
sideration. They have at least the merit of directness and they are de­
signed to develop the resources and advance the prosperity of the country
The Convention brought men of all parts of the Union together and so
far effected an exchange of ideas which cannot fail to be beneficial. On
some of tbe subjects discussed we shall have occasion to speak hereafter.

REDUCTION OF TAXATION.
A strong effort is to be made in the next session of Congress to obtain a
remission of a part of the Internal Revenue taxation. There is no doubt
that apart of tbe depression and languor which afflicts the material interests
of the country and impairs its productive power, is due to the pressure of
ill-advised and unwisely laid taxes. In consequenoe o-f the vigor and fidelity
with which the Internal Revenue Law has been administered we have a
surplus of fifty millions or more in the Federal Treasury. It is the pressure
o f this excess of income on expenditure that has given new impetus to the
question of remitting the taxes, and has made it possible to give a favor­
able answer to the demand. In a few weeks Congress will assemble, an<|




1869]

REDUCTION OF TAXATION.

959

it is well to look over the whole case and to lay down some general prin­
ciples by which we can guide ourselves to a right decision of some, at least)
of the important points involved.
And in the first place, taxes cannot be allowed to remain as they areThe people will not submit to the pressure of heavier taxation than is need­
ful to pay the interest of the debt and the expenses of an economical
administration o f the government.
W ere the material interests of the
country vigorous and unimpaired, and had not their prosperity been
deranged by the unprecedented monetary spasms o f the last six months>
it might be practicable to keep up the present scale o f taxation, so as to
secure a handsome annual surplus to be devoted to the reduction of the
principal of the debt. Desirable as that policy might be, however, it has
to be made subordinate for the present to the paramount obligation of pre­
serving the material prosperity o f the country and of preventing an
impoverishment of the national wealth and productive efficiency. W h er­
ever we turn it is evident that legitimate commerce and trade are less pro­
fitable than formerly. Complaints are general that small capitalists feel it
almost impossible to carry on their business and to stand up against the
fierce competition which they have to sustain with the more ample capital
of others around them. There is evidently a great change in progress in
this respect. Formerly the small capitalists in this country seemed to
have almost equal facilities in every department o f business with men of
larger means; but the tide o f events now is settling rapidly in the opposite
direction, and there is more and more tendency to accumulate capital in
large masses. W e have several times pointed out in the M a g a z i n e the
inevitable result, as one of the effects of paper currency and of the inflated
and unstable value which never fail to be developed where the specie standard
monetary enuilibrum is lost. The same law which we have shown to rule
in Wall street is growing every year more pervasive in its force, and more
general in its sway, until it embraces almost all departments of our indus­
trial life. These tendencies are well worthy of more attention than they
have received from our financial statesmen. It would be easy to show that
our internal revenue taxation has contributed not a little to increase the
disadvantages of small capitalits, and to facilitate their absorption by their
more opulent rivals. This discussion is, however, foreign to our present
purpose, which is simply to point out one o f the directions in which our
tax-reform machinery should operate. Whatever taxes tend to clog our
internal industry, to fetter the productive powers o f the country, to give
large capitalists undue advantages over small capitalists, to check the
operation of our producers, and to hinder the free circulation of our indus­
trial wealth— all such taxes should be forthwith repealed as pernicious.
This principle applies of course, in the first place and most directly, to our




360

LIABILITY OF RAILROADS FOR TAKING EXTRA FARE.

\_NoVember,

internal taxation, both that levied on manufacturing industry, and especi­
ally on the product of skilled labor. One of the chief points of the fiscal
policy o f any nation should be to unfetter industry, and as far as possible
to guard against all interference on the part of revenue officials with the
processes by which the labor o f its population imparts new values to the
rude materials of wealth.
These fundamental principles o f taxation are universally admitted in
theory. But the difficulty is, that in practice nothing is so difficult as
their wise application. Still the attempt has to be made. Congress will
have the agreeable task o f taking oft some fifty millions of taxes, and what
we have to do is to decide which are the most galling, the most mischievous,
the most obnoxious to just objection, the most opposed to the true prin'
ciples of fiscal science, the most detrimental to the best interests of the
country.
W e do not design in this place to give an exhaustive statement o f what
Congress ought to do in revising the internal revenue tax list. W e con­
tent ourselves with simply laying down the paramount principles which
must be obeyed and pointing out the general direction o f the path which
Congress will do well to take. The details of the iax reform will come up
for frequent discussion hereafter. For if we mistake not, fiscal questions
are destined to assume a prominence before Congress greater than has
ever been accorded to them before in this country.
Whatever difference of opinion may be provoked with regard to the
taxes to be taken off and repealed about those to be left standing, there is
we presume little doubt. There are the taxes on spirits, on tobacco, on
stamps, and for a time we fear the income tax. With these honestly
assessed and faithfully collected, we should probably be able to repeal
almost all the rest of our internal taxation and thus relieve our domestic
producers from a weight which is felt to be oppressive and may soon
become almost intolerable.

LIABILITY OF RAILROADS FOR TARING EXTRA FARE.
A decision has been recently made by the Hon. Charles P . Kirklandi
as referee in the case of Philo Johnson vs. The Hudson River Railroad
Company, a correct understanding o f which is o f great importance to
the different railroad companies o f the State. The case will, o f course,
be carried up from the referee’s decision and passed upon finally by
the Court o f Appeals, and may be reversed; but yet it seems to us hardly
probable, after studying the opinion, that any change will be made
in the judgment by the higher courts. In fact, the referee stated that




1869]

LIABILITY OF RAILROADS FOR TAKING EXTRA FARE.

36l

he had given the subject the most careful consideration, and earnestly
endeavored to find a way of escape for the company from the payment o f
a sum so large in amount and apparently so disproportioned to their
offence, but adds that he was unable to discover that way.
It appears that by the 1 7th section of the charter of the Hudson
River Eailroad the company is restricted in its charges for way
travel to two and one-half cents per mile in the winter, and two
cents during the residue o f the year. By an act passed February 5,
1850, the word “ winter” was stricken out of this section, and the
words “ December, January, February and March ” were substituted. By
chapter 185 of the Laws o f 1857 the defendants and all railroad com­
panies were authorized, for any distance less than one mile, to take the
legal fare for one mile. The distance from Spuyten Duvvil to the railroad
station at West Twenty-ninth street was over ten miles, but less than eleven*
Thus, by the above acts, the railroad company was authorized to charge
and receive of the plaintiff for his fare between those two points 27^- cents
in December, January, February and March, and 22 cents in the other
months o f the year. They actually charged and received 30 cents during
the four months above mentioned, and 25 cents during other months. In
1857 the Legislature passed an act (chapter 185) entitled “ A n Act to
Prevent Extortion by Railroad Companies,” which provides that “ any
railroad company which shall ask and receive a greater rate of fare
than is allowed by law shall forfeit 850, which sum may be lecovered,
together with such excess, by the party paying the same.” Between the
10th day of May, 1865, and the 9th of May, 1866, both inclusive, the
plaintiff was a passenger on the Hudson .River Railroad between Spuyten
Dnyvil and New York 526 times, in going in the morning from his resi­
dence and returning in the evening; and the railroad asked and received
of the plaintiff each of said times excessive fare, as above stated. On
these facts the referee found that the entire amount overcharged to plain­
tiff on the winter trips amounted to 83 54, and on the summer trips
811 47, making in all the sum o f 815 01 overcharged him during the
year; that for each o f these overcharges the defendant was liable in
a fine o f 850, to be paid the plaintiff according to the statute; and there­
fore rendered a judgment against the railroad company for 826,315.
To this conclusion o f the referee the railroad company took exception!
first, on the ground that under the General Railroad A ct of 1850 they were
entitled to charge the plaintiff the fare they did charge, section 49 of that
act authorizing, as they claimed, all railroad corporations, as well those
existing on the 2d day of April, 1850, as those afterwaid formed, to
charge three cents per mile, and no more; in other words, that it fixed
a uniform rate of three cents for all. Necessarily, if this position is cor-




3G2

L IA B IL IT Y O F R A IL R O A D S F O R T A K IN G E X T R A F A R E . [

November,

•
rect, all existing railroads whose fares were less than three cents could
raise them to that sum, and all whose fares were more must reduce
them accordingly.
There were then more than fifty railroad corporations in this State ;
many of the roads completed and in operation, and others in process o f
construction and near completion ; many millions o f capital had been in­
vested in them, and they extended over many hundreds, if not thousands,
o f miles in the State. Provision as to fare was made in all their char­
ters; in some the rate was not limited, but in others, the rate was fixed,
as in the Lockport and Niagara Road, at 4 cents; Oswego and Syracuse,
at 5 cents; Utica and Schenectady at 4 cents; B iffalo and Niagara Falls
at 4 cents; Auburn and Syracuse at 4 cents; Syracuse and Utica at 4
cents; Troy and Schenectady, 6 cents; (Northern Ogdensburg to Rouse’s
Point) at 4 cents, etc. In fact, the time of the passage of that Act, the
Hudson River Railroad Company was the only Company in the State
whose fare was limited to less than 3 cents. It follows, therefore, that
if, by the A ct of 1850, the defendants’ rate o f fare was raised to three
cents, then the fare of all railroads, at that time entitled to 4, 5, and 0
cents, was, by the same Act, reduced to 3 cents. While the power of the
Legislature thus to raise and to reduce cannot be disputed, it will not be
denied that their intention to do the latter, at least in the case o f those
railroads (and there were many o f them) which were at that moment, in
a financial sence, almost in their death struggles, must be manifested in
a most clear, decisive, and unmistakable manner, and not left to ingenious
verbal construction.
Such being the contemporary existing facts, let us, in the light they
afford, examine the piovisions of the Act itself.
The title of the A ct is, as stated above, “ An A c t to authorize the
formation of Railroad Corporations, and to regulate the same.” Its
object and intent was to create new railroad companies and adopt a
general system for them. Whatever parts relate to existing railroads
formed no part of the primary object of the Act, and such pars being
comparatively incidental, must, on general principles of construction, be
carefully scrutinized, and not extended beyond their plain and manifest
purport. The section relied on to show that the Act, so far as it relates
to fare, applies to all existing companies, and fixes a uniform rate o f 3
cents, which cannot be exceeded, is the 49th ; the only part o f the A ct
relating to fare is the 9th subdivision of § 28, which provides that “ the
compensation for any passenger shall not exceed three cents per mile.’ ’
The first sentence of § 49 declares that all existing railroad corporations
“ shall possess all the powers an/d privileges contained in the Act, and
be subject to all the duties, liabilities, and provisions, not inconsistent




1869]

BUSINESS CHANGES A f THE SOUTH.

368

with the provisions of their charter, contained in sections 9 ,1 3 , 14, etc.,
28 (except sub. 9), 30, etc., etc.”
Here we see that subdivision 9 o f sec­
tion 28, the only part of the A ct in any manner affecting the rate of fare,
is expressly excepted from the operation o f § 49. How, then, can it
even plausibly be contended that that subdivision invests the Hudson
River Road with power to raise their fare, in some cases 20 per cent, in
others 50 per cent, and in others 45 per cent?
The Company’s defense is not aided by the U. 8. Rev. Acts, author­
izing railroad companies to add the tax to the fare. The amount of
tax authorized being two and one-half per cent on the gross receipts
if added to the defendants’ charter fare, would not have amounted to the
fare charged plaintiff. It would have added less than one cent to each
sum paid by plaintiff. It has been held by the New York Common
Pleas that this Act was inoperative on the ground that it was incapable
of enforcement, there b<dng no currency in which the tax, if it did not
amount to one cent, could be paid. This difficulty was remedied by an
A ct of Congress o f July, 1866 ; this act was subsequent to this transaction.
Other points were discussed on the argument and in the opinion of
the referee, but it is unnecessary for us to refer to them here. The above
presents the main question raised and the mode of its disposal. The
decision is of great interest to all roads in the State, showing, as it does,
the liability to which they subject themselves by each excessive charge
for fare. It is proper to add, that so far as 'he Hudson River Road is
concerned, its excessive charge for fare was corrected about the time
this suit was brought, and that all other claims for the penalty on ac­
count o f the illegal rates of that period demanded and taken are now
barred by the Statute of Limitations.

BUSINESS CHANGES AT THE SOUTH— THE PAST AND FUTURE.
A s one result of the political, social and commercial revolution which
has passed over the Southern States, there is a marked change in the
method of doing business. Formerly the proprietors o f large estatesmade purchases for the multitudes of hands whom they employed. The
planter was a sort o f small jobber, or large retail dealer who provided
for those dependent upon him everything they needed in the way of cloth­
ing, food, shoes, medicines, &c., & c. H e purchased his supplies in large
quantities, both ol domestic and imported goods, buying either o f the
dealer in the large cities or o f the merchant of his neighborhood, who
kept in store a large stock. W ith the changes effected by the war came




S64

BUSINESS CHANGES AX THE SOUTH.

[November,

a change here. The planter no longer had hundreds dependent on him.
He had to make purchases only for himself and family. His former
slaves became grouped in families, and family self-dependence began.
Each was the purchaser o f what he needed or desired. He supplied his
own wants. Forthwith there sprang up a host o f small shops in the South,
managed by ignorant and incompetent meD, who soon failed and went
out of business. The old dealers grew stronger from month to month and
enlarged their business. They drew around them a new class o f custom­
ers. The negroes on their small holdings produced such crops as they
could, and with the proceeds purchased goods. It was no longer dealing
by wholesale. The small tools o f the farm and garden, the iron and
tin ware and crockery for houses, harness for animals, shoes, clothing,
groceries; in fine all the varied wants and needs o f an agricultural com­
munity became matters of individual and separate interest to the whole
people, and a new phase came over Southern trade.
The minor villages, the corners and cross roads, buyers from which
were heretofore unknown in Northern markets, familiar as they were
in Southern centres like Mobile, Savannah, Macon, Charleston, &c., &c.,
now deal directly with the North ; and there has also grown up a
wider arid more general system o f commercial traveling than has ever
before prevailed at the South. These travelers go from New York and
Philadelphia, and from the manufacturing towns, and solicit direct trade
with those with whom business was formerly done by the intervention of
the Southern jobber or merchant.
So too the general business o f the South, which was small at the end
of the war, has steadily increased, and is assuming large dimensions, while
it is in a more healthy condition than ever before. The merchants coma
North thic season with cash or requiring very short credits, while the
vastly increased number o f independent “ customers” in the Southern
States enhances the demand for goods both in quantity and variety. A t
the same time the demand for the finest class o f goods is increasing. The
new wants and methods of trade are the direct outgrowth o f the new
system of labor.
This changed business at the South requires for its transaction an
increased volume of currency. Business transactions are more numerous,
and the interchange of commodities being more active, a large quantity
of circulation is requisite to keep pace with the accelerated rate of
the community. There is a change also in the method o f moving the
crops. Formerly, the factor who took the product of a great plantation
working one or two hundred hands, made advances on this crop. The
merchant also made advances. Now the same quantity o f cotton is raised
by a score or more of men, with each of whom a proportionate credit




1869]

BUSINESS CnANOES AT THE SOUTH.

365

is created at the factor’s or the merchant’s. The negro comes in also as a
proprietor, and he has his four bales or his twenty bales to sell. The
community is raising its own iood far more than formerly, hence there is
a renewed activity in domestic exchanges, and the cotton which formerly
went for the purchase of grain and wheat now is a surplus, to be sold for
cash. In this way too is the condition of the South improved and its
prosperity placed on broader and firmer foundations.
The large cities of the W e st are mating an effort to extend their trade
with the South, and every fresh railroad built is a new means of securing
a foothold there. There is a value and a certainty to the Southern crop
which makes the promise of a sure and stable business, and none are keener
to discover new relations tnan the business men who are to take advan­
tage of them. There is an evident disposition, and one strongly developed
in the South, to institute a system of manufactures. They have water
power, and they propose to utilize it. They have iron and coal, and they
can utilize them. They have cotton, why should they not spin it? There
is a climate and a soil favorable to a most diversified industry, and there is
no reason, not easily overcome, why they should not have the busy centres
which are so frequently met with in other portions of the Union. If
population is needed, that will come when enterprise is rewarded and labor
is well paid. If capital is needed, that will flow in where it may confidently hope for profitable investment. Whatever may happen, the future
can be but prosperous and bright. The cotton crop of 2,493,000 bales
has a valuation of $280,000,000. To this may be added the value o f rice
and tobacco, and sugar and corn, and the very large sum that is realized
in the production of the minor crops which now form an important element
in Southern agriculture.
A recent writer in a Mobile paper suggests that ihe cotton crop should
be kept at its present dimensions in order that the present high price may
rule. He therefore discourages emigration and any means by which the
volume of labor would be increased. The fallacy herein suggested finds
no favor among the thinking classes at the South, which shows a disposition
to produce to its utmost possible limit. Scarcity cannot be organized,
nor should it be, so long as any man is without clothing or food or
a roof to shelter him. Increased and cheapened pioduction must be the
rule in every enlightened community. It is the only path to general com­
fort, happiness and wealth.
The conclusion briefly stated o f these remarks is, that the South is
growing stronger and richer every year; that it offers such a market as
it has never done before; that manufactures are to be instituted there;
that the changed course of business demands an increase of currency
and a new method of dealing on the part c f the great commercial centres,




3G6

A FOREIGN7 LOAN.

[November,

and that in the new development o f so large and populous and impor­
tant a portion o f the Union, the whole country will find its prosperity
expanded, quickened and assured.

A FOREIGN LOAN.
Mr. C. S. P. Bowles, a prominent American banker, of Paris, has
written to the Secretary of the Treasury, with the object o f reviving, in
a somewhat new form, the defunct scheme o f a foreign loan. He pro*
poses to us to issue a new series o f 4 percent non-taxable bonis, the
interest on which shall be payable in London, Paris, or New York, at the
option of the holder. These bonds, he thinks, can be negotiated at par, if,
before we negotiate them, we pay off our matured Five-Twenties in gold.
The National banks, he says, would at once accept the new bonds, and
receive four per cent instead of six per cent as at present. In this Mr.
Bowles is right. The banks are creations of the Government, and may be
compelled to accede to this proposition by a law passed for that purpose.
Indeed, there are a large number of the friends o f the National banks
who are of opinion that the banks ought to receive no more than four per
cent on such bonds as they deposit as security for their currency. One*
half o f the profits o f the currency-issuing privilege ought, they claim, to
be the property o f the Government.
Our National banking system is a
great benefit to the country, and offers advantages to the country far supe­
rior to any ever enjoyed under the old system o f State banking, under
which many millions were lost every year by uncurrent money, broken
banks, and o<her incidents of the exploded system. Still the benefits of
the National banks may be purchased at too high a price, and the banks,
it is urged, should be content to receive four per cent interest, instead of
six per cent on their bonds. This project has often been proposed, and
there is nothing new in M r. Bowles’ version of it. Nor, indeed, has it
anything to do with his proposed foreign loan.
The principles on which Mr. Bowles rests his scheme are two ; first,
that Europe is the reservoir o f capital and secondly, that we can draw
from that reservoir, presenting our own terms and fixing our own rate of
interest. He points to the great French loans to show how abundant
money is in Europe, and he asks us why, with the credit of this great
country, we should not get in Paris and London as much money as we
want, at a low rate o f interest. W e could do this, he says, and save
immensely in annual interest by the doing of it. The new Tri-currency
Consols, which he proposes to issue at 4 per cent, would take the place of
the existing 6 per cent Five-Twenties, and he supposes that the holders of




1869]

A FOREIGN LOAN.

867

the latter would be glad to make the exchange. These are the essential
features of his plan, which does not much differ, as will be seen, from
other schemes for foreign loans, o f which a number are always proposed
at every session of Congress. What Mr. Bowles fails to show is by what
magic he will induce persons, who can buy our 6 per cent bonds at 90 or
lower, to give 100 for bonds having only four per cent interest. It is
true, he says that our credit will receive an impulse if we pay off the
principal of our bonds immediately in gold. But suppose this were so.
bow are we to get the means to pay off these old Five-Twenties ? Must
we not get these means by the sale o f the new bonds? And must not
the new bonds be sold before the old ones can be redeemed? How,
then, can the new bonds be sold at the enhanced price ? The advance
which would be produced by their payment might benefit a clique of
speeuators, but it would be at an advance loss to our National Treasury,
if any such scheme should be tried and the scheme itself must inevitably
be abortive.
But this is not all.
Can Mr. Bowles really think, on
reflection for a moment, that our credit would be permanently raised abroad
if we could, by some manceuvering, adopt his scheme ? W hat are the
facts? W e find our annual interest too heavy a burden to be easily
borne. To reduce the burden by one-third we pay off our whole debt
in gold, and pay it off with borrowed money. By this payment with
borrowed money we are to be enabled so to improve our credit that we
can borrow at four per cent when we previously had to pay six per cent.
Mr. Bowles proposes to raise 1,200 millions for us at four per cent, that,
with its proceeds, we may pay off 1,200 millions of debt now at six per
cent. Supposing, we say, that the substitution were to be attempted, who
does not see that the effect of it would be to lower our credit rather than
to raise it ? For whatever deranges and disturbs large masses o f bonds,
always tends to depress them in the market, and to unsettle their value
as investments. I f Mr. Bowles had been more conversant with Wall
street, and with the ingenious schemes for funding our national debt which
have been discussed there during the last seven or eight years, be would
not be so surprised as he seems to be that his own schemes has found so
little favor. A s to this writer’s statements that Europe is the centre
and source of capital, we are not sure that we understand his meaning.
W e remember, in the early years of the war, the London Times used fre­
quently to repeat this axiom, and argued from it that as John Bull would
not lend us a penny we must stop fighting. This financial argument, if
Mr. Bowles wishes to repeat it, we must confute now, as we did then, by
pointing to our immense popular loans, especially the earliest Five-Twenty
loan o f 1862, and the last Seven-Thirty loan of 1866. The former o f
these was made when the resources of this country were undeveloped, and




4

368

COUPON AND REGISTERED BONDS.

[Novem ber

in confusion at the outbreak o f the war; and the latter when, after we
had passed through the struggle, and was exhausted with the stupendous
struggle through which we had passed we still contrived, in one single
year, to raise among ourselves, and without foreign help, no less than
1,800 millions of dollars. W e point to either or to both o f these great
loan efforts o f this country, and we challenge Mr. Bowles to produce in
the financial history of France, England, or of any other nation, aught
that will compare with them. They are, and were, the wonder of foreign
nations, and the glory and triumph of our own. How, with these vast
resources, we are still compelled to pay so high a rate of interest is a ques­
tion to which many answers have been given. As to the methods by
which we are to put matters on a more satisfactory footing, there is also
great diversity o f opinion. But assuredly the goal is not to be reached in
the way pointed out by Mr. Bowles.

COUPON AND REGISTERED BONDS.
[F rom the C om m ercial & F ioancial C&vonicle.J

W e have heretofore had occasion to call attention to the liberal policy
pursued by the Secretary of the Treasury in making public all informa­
tion in regard to the Government finances, which can be published without
detriment to the service. The monthly statements of the public debt are
given much more in detail than formerly, and, in regard to all the finan
cial operations of the Government, the utmost publicity is observed,
giving to all parties an equal advantage in forecasting the result o f such
operations, and in - shaping their business transactions accordingly.
Although this course seems to be the only true and honorable one for a
public officer to pursue, when occupying the position of fiduciary agent
for the whole people, it has not always been followed, and, at various
periods in former years, the complaints against the secrecy of Government
operations have been loud and strong.
The subject also seems to warrant these remarks, the more, from the
fact that concealment in regard to the affairs of great corporations by
their officers and directors, is one of the greatest financial evils of the
time, and it would be an unfavorable sign, should the example for such
concealment be found in the action of the Government itself. The fol­
lowing statement of the respective amounts of coupon and registered
bonds of each issue o f United States loans, outstanding on the 30th
of September last, has been furnished by the Treasury Department. N o
similar statement has ever been made before, to our knowledge, not even
in the Annual R eport o f the Secretary of the Treasury, and as the pro-




1869]

369

THE ASSISTANT TREASURERSIIIP.

cess o f conversion from coupon to registered bonds has been going
on for a long time, the respective amounts of each kind have changed
materially since they were originally issued. All the coupon bonds pur­
chased by the Treasury are imnjediately conver ed into registered, and
$34,100,9^0 of coupon bonds had been thus converted up to the 80th
of September last:
STATEMENT

SHOWING

THE AMOUNT OE COUPON AND
STANDING SEPTEMBER
TH ,

30

Act.
When payable.
June 14th, 1858..................................... Jan. 1st, 1874
June 22d, I860.................................... Jan. 1st, 1871
Feb. 8 th, 1861....................................... Dec. 31st, 1880
March 2d, 1861..................................... July 1st, 1881
July 17th, 1861..................................... June 30th, 1881
Feb. 25th, 1862..................................... May 1st, 1882
March 3d, 1863.................................... June 3oth, !8S1
March 3d, 1864.................................... March I t, 1904
March 3d, 1864 ................................... Nov. 1st, 1884
June 30th, 1864.................................... Nov. 1st, 1884
March 3d, 186 >.................................... Nov. 1st, 1885
March 3d, 1865..................................... July 1st, 18J5
March 3d, 1865................................... July 1st, 1887
March 3d, 1865.................................... July 1st, 1383

REGISTERED

1869.

Coupon.
14,755,000
973,000
5,380,000
945,000
74,065.300
385,7 5,050
24,328,I 50
66,617,750
.............
60,833,050
139,095,200
242,598,300
284,404,950
32,689,350

BONDS OUT­

Registered.
5,*245,000
6,019,000
13,035,000
115,252,300
129.016,550
50,671,350
127,949,5'0
3,882,500
64,728,250
64,232,050
90,400,650
95,184.000
9,850,000

1,332,440,600

Total.
20,000,000
7,022,000
18,415,000
945,000
189,317,600
514,771,600
75,000,000
194,567,300
3,882,500
125,561,300
203,327,250
332,998,950
379,588,950
42,539,350

775,496,200 2,107,936,800

THE ASSISTANT TEEiSU SEK SH IP.J
The choice of a successor in office of General Butterfield becomes a
matter of considerable public interest, from the difficulty experienced in
finding a suitable person to take the position. There is no actual scarcity
of parties posessing the requisite qualifications; but there are few who
while competent for the duties are willing to accept the responsibilities
for the compensation allowed. The office is one o f great importance
The responsibility attached to it exceeds that o f any other under the
Government. The Assistant Treasurer is custodian of from $70,000,000
to $100,000,000 of money— a larger amount, probably, than is held by
any fiscal of fleer in any country. He is responsible not only for the safe
keeping of these funds, but also for the faithful and accurate execution <f
financial transactions aggregating over $1,000,000,000 per annum. H s
responsibility extends not only to bis own acts, but to the errors o f bis
clerks, their defalcation, acceptance of spurious evidences o f debt, their
over payments, and in short everything at variance with a correct adminis­
tration of his immense trusts, whether done directly by himself or
through bis agents. For the peiformance o f such duties tlie highest
business qualifications are required. The officer must have proved him­
self, through a long experience, to be a man o f unquestionable integrity.
He ought to be familiar with the banking system of New York and with
all the details of practical finance. As the financial representative of the
government at the money centre of the country, he is naturally called




370

THE ASSISTANT TREASURERSHIP.

[November,

upon, in monetary exigencies to tender opinions and counsel to the
Secretary of the Treasury, who being at a distance from the centre of
business often finds it impossible to form an independent opinion o f the
situation o f affairs. A t times the Secretary o f the Treasury must confide
to the Assistant Treasurer an absolute discretion in matters of great
magnitude and importance affecting the market for money, gold, and
securities.
N ot only does the performance of these duties call for mature experience
in the highest branches o f practical finance and for excellent judgement
and great prudence, but the public interest demands that who ever
occupies this position should possess these qualifications in an eminent
degree.
Is it to be expected, howeve'-, that one thus qualified would accept the
risks, the labor, the responsibility, the worrying criticisms of ad captandum
writers, and the liability to removal upon changes of administration, for a
consideration o f $6,000 per annum ? A person competent for such an
office can readily command, in other positions, a salary o f $15,000 to
$20,000; and what reason has the Government, or we should rather say
our law-makers, to expect that it can secure the requisite ability and
character for one-third of that amount ? If the officer accepts a com­
pensation below what his abilities would command elsewhere, there is
reason for expecting that his official position may be used, in outside
operations, fir making up the deficiency. In fact, the inadequacy of the
salary acts directly as an incentive to speculation, on the part of the
holder of the office, based upon the knowlege and facilities growing out of
Government transactions. While, therefore, it may not be impossible to
find a pure officer for the present salary, yet the lowness of the pay tends
to make the incumbents impure; and before we can reasonably expect the
Assistant Treasurer to maintain a spo'less reputation, we should com­
pensate him in proportion to the value of his services and the reasonable
demands of his social position.
But while j istice and prudence would demand that Congress should
grant a more liberal remuneration for this office, it may be well for Con­
gress, at the same time, to consider whether the period has not arrived for
making some change in the manner of receiving, paying out, and holding
the government funds. The accumulation of $100,000,000 of money in
the vaults o f the Sub-Treasury, held aloof from the business o f the
country, and alternately distributed and again ab sorbed in large amounts
is productive o f serious derange ments to the money market ar.d to the
general business of the country. W hile it may be necessary for the Gov­
ernment, in the present condition of its finances, to have large balances
at its disposal, yet it is equally important that its funds should be so held




1809]

A GOLD PRICE FOR COTTON.

371

as to be available for facilitating the exchanges o f the country and for
encouraging its enterprise, now repressed by numerous unnatural
agencies, the legacy of war finance. The working of the public finances
instead of being conducted outside of the general financial operations of
the country, and acting arbitrarily, and often injuriously, upon exchanges)
should be so regulated as to form a part o f the great whole, the one
running into and naturally co-operating with the other. W e do not, at
present, propose to consider the details for such an arrangement; but the
principle is so obviously natural and sound, that it appears to us but to
need suggestion in order to command approval. No firm, or corporation)
or city, or State, however extensive its capital and operations, finds it
necessary or expedient to isolate itself from the banking arrangements o^
the community, and to erect an agency wholly independent for the
transaction of its business; nor is it easy to conceive of adequate reasons
for the Government taking an exceptional course. This was a matter o f
little moment when our disbursements amounted to only a few millions o f
dollars in a year; but now, when the aggregate receipts and disburse­
ments have increased so largely, the system becomes a source o f embar­
rassment and of actual injury to every interest, involving, as it does, the
alternate letting out and locking up of such large sums, and the perpetual
idleness of the immense balance it holds, o f capital adapted for circulation
through the channels of commerce and industry. W e think, therefore(
that the whole system demands the early attention o f Congress.

A GOLD PRICE FOR COTTON.
The desirableness o f a return to a stable basis of values is admitted by
every one and many are the methods proposed by which that point may
be reached. There is at present a want o f fixedness and an absence of
certainty in business transactions, which all deplore and which must con­
tinue while the price of gold or more correctly speaking the value of
the greenback is daily and almost hourly changing. For with this large
and irredeemable paper currency, thus changing in its purchasing power
day by day, prices vary, the spirit of speculation is kept active, and
an unhealthy and unsteady tone prevails in all financial and commercial
circles.
In no branch of business is this continued fluctuation more unfavorably felt
than in the cotton trade. There is now no large margin as formerly in
prices between different countries. The telegraph has brought this market
and Liverpool and all other cotton markets so closely together that a
commission is about all the merchant can secure in any transaction, and




372

A GOLD PRICE FOR COTTON.

f November,

a slight turn in gold can more than wipe out this, leaving a loss as the
net result of the operation. In fact so great has the risk become that the
careful shipper must buy his gold first and then his cotton. Purchases
also, for future delivery (a legitimate business), are rendered, from this
same cause, almost as uncertain as a ticket in a lottery.
These facts have long led the Northern cotton merchant, especially
those engaged in a foreign business, to desire freedom from our present
unstable currency. To await till we return to a specie basis, may require
the continuance for years o f the existing difficulties; whereas a very
simple and immediate remedy, so far as this branch of business is con­
cerned, may be found in selling cotton hereafter for g o ld ; that is, having
no currency quotation, but simply a quotation in gold. A s is well
known, this has always been done in Galveston, and the South generally
is in a condition to make the change. A t the recent Commercial Con­
vention in Louisville there was presented a communication from Mr. RW . Latbram, of Washington, in which were embodied the views of a
meeting of Southern gentlemen, who, in July, passed resolutions in favor
of the organization of banks at the South, under State loans and on a
coin basis. The meeting resolved that our present paper currency was
an undesirable medium o f exchange ; that the South had less than its
proportion o f national bank currency ; that planters sell their cotton,
hemp, tobacco and sugar for coin on ly; aqd that they make their labor
contracts payable only in specie. The subject referred to in the conclud­
ing portions of this resolution h is been widely discussed at the South, and
is looked upon with favor by leading and influential men, as well as by
the journals o f that section, as a means of reconstructing our internal
commerce upon a sound and safe bask, and avoiding the fluctuations that
peril and render uncertain so much of the business of the country.
The cotton crop, at present prices, is worth say $300,000,000, and of
this value nearly two-thirds is taken for export, and goes abroad as the
medium of settling our exchanges. Entering thus with controlling influ­
ence into our foreign commerce, how essential this change becomes.
W ith it there would be uniformity in price at New Orleans, at Mobile, at
Charleston, at New York, and at Liverpool. Purchasers would know
what they were buying, and producers would know what they were
selling. On the other hand, the present selling currency price, as stated
above, must always be first adjusted to the gold value at the moment
of purchase, and even then, before the transaction is closed, it is clouded,
and its results are, perhaps, materially changed by the varying humors
o f the Gold Room. With every hour the figure fluctuates; a rise or
fall o f several per cent may occur in a day, or a week. Gold rings are
organized, whose operations utterly paralize foreign commerce, and a wide-




1869]

A GOLD PRICE FOR COTTOIC.

373

spread uncertainty and doubt become the rule where order, harmony,
stability and fixedne>s should govern.
The South, also, is now out of debt, and for this reason in an excellent
condition to inaugurate this scheme and put it into effective practice.
The old debts of the South have either been paid, or where they could not
be thus liquidated, they have been wiped out by the Bankruptcy Act.
There is not, therefore, any debtor class to suffer by a return to specie
payments. A t present the merchants from that section are the favorite
buyers in our market. They usually come with cash, and have had behind
them the immense value o f the cotton crop. Formerly the South depended
largely, indeed almost entirely, on this great staple, and the money for it
was spent before the crop was raised. The changed condition, result­
ing from the war, has introduced a changed method o f agriculture.
Industry is more diversified, and attention is paid to the raising o f a
variety o f crops. The food for which they once looked so largely to the
northwest is now produced at home in greater quantities than before.
They buy fewer products for consumption. They have a large surplus
o f cotton from the proceeds o f whieh they are accumulating wealth.
But it may be said that the step we have indicated is a step towards
the resumption o f specie payments. It is certainly a movement in that
direction, and for that reason a special benefit to the north. Its influ­
ence would be felt in the north and west, and would tend to modify and
render more certain business transactions in all parts of the country.
Besides, this step is rendered the more necessary in view of the possible
action o f the Supreme Court o f the United States in declaring the Legal
Tender Act unconstitutional. There have been intimations that the opin­
ion of this court would be adverse to the legality o f the act, and there are
very many who believe that the delay in rendering a decision is due to
the apprehension of the Court of the effect of a sudden announcement of
the conclusion reached by them. B 3 this as it may, however, much of
this apprehension would soon be found to be groundless if a good start
was already made in doing an important branch o f business upon a
specie basis. There would be at least one solid rock of real credit and
value upon which commerce could be re-erected, and which would defy
whatever tempest and disaster might from any cause result. But the
apprehension and dread of those who predict immediate disaster upon
a declaration of the unconstitutionality o f the Legal Tender A ct, is
according to our view, by no means certain o f being realized. N o
decision o f this Court could have a more damaging effect upon the gene­
ral trade of the country than the late speculations in gold which pros­
trated the business of the nation as effectually as if it had been stricken
by a tornado or upheaved by an earthquake. Prices declined, the import




314

t r a n s p o r t a t io n

of

breadstuffs.

[iV

ovemlev-

trade ceased, the export business was checked, confidence departed, and
the healthful commercial transactions of the whole country were suddenly
and unexpectedly arrested. Such Jesuits as these we have seen recently.
The “ flurry” of a week culminated in a shock which was at once com­
posed by stupefying all the interests that bad been perturbed by it. If therehad been a price in currency before for cotton, it ceased to have a value
then, and no mathematical calculation could solve the intricate mysteries
o f the market, and bring order out o f the confusion that prevailed.
Under our present currency system, we are continually liable, and each
succeeding year more liable to a recurrence o f these gold corners, and it
would appear that no decision, however sweeping in its effects, could have
a more damaging influence upon the business interests of the country.
But more than this, we are led to believe that the government will take
such steps that its issues of currency will be redeemable in gold on the
announcement of such a decision, and the immediate effect may thus be
o f far less moment than any imagine. W e shall discuss this point more
fully on a future occasion.
In view of what has been said would it not be possible and also the
part o f wisdom for this city to take the lead in this extremely important
matter. The cotton is at the South to he sure, but the great body of the
capital which makes the exchanges and transacts the business are here.
Let cotton factors explode these currency rates at. once, quoting cotton in
a language intelligible to all the world and not requiring an elaborate
arithmetical investigation to render it comprehensible. This staple offers
the best point o f departure because, as we have already stated, o f its great
value, and because so much of it enters into export, and is employed in
adjusting the balances of the foreign trade. There is a significance about
gold dealings in cotton which do not belong to grain or tobacco. They
are comparatively modern elements in our commerce with the rest of the
world, but they would not long resist the impulse of the new tide on which
business would be borne along. They would be lifted from their currency
moorings and wafted into an open sea where there was depth, a safe anchor­
age and ample sea room. If there ever was a time when stability in busi­
ness should be sought for it is at the present moment. W e have learned
many lessons by experience, and we grow more assured every day that
the real prosperity of thecountry depends upon a return to specie pay­
ments, and upon the subordination of our vast commercial interests to
the established principles of financial action.

TRANSPORTATION OF BREADSTUFF'S.
In the course of an article in September, on the subject o f Breadstuff's,,
the probable supply, and the demand from Europe, we briefly alluded




1869]

TRANSPORTATION OP BREADSTUFFS.

375

to the fact that the matter of transportation might become o f unusual
importance in its relation to the course o f prices. Year by year the
centre of the great wheat-growing districts of the United States has been
moving westward, until, from being in the Genesee Valley, as it was
thirty-five years ago, or in Ohio or Michigan, as it was twenty years ago,
it is now on the banks o f the Mississippi, or to the westward of that
great river. A nd as the centre of the wheat growing region has moved
westward, the quantity which it is necessary to bring to the seaboard
every year has increased. The same remark applies, in a less degree, to
other cereals— corn, oats, rye, barley, & c.; and the subject of the means
provided and the rates paid for the transportation of the vast quantities
of breadstuff's now seeking the seaboard from far western fields, is one
whose importance is constantly asserting itself.
The serious breaks in the Erie Canal, which were produced by the
severe tloods of October, and against which no foresight could have
guarded, suspended navigation about two weeks, and was attended by
various circumstances which gave it unusual importance, and finally forces
the whole subject of the transportation of breadstuffs eastward upon pub­
lic attention. The crop o f spring wheat was fully twenty days late this
season, and this break occurred just at the time when it began to move,
— delaying the first considerable arrivals o f spring wheat at this market
to about the first o f November, instead of the first of October, as usual;
giving us, in fact but about one month’s free deliveries by canal, instead
of two, as usual.
Should the weather prove exceptionably favorable,
we may have yet five weeks of canal navigation, during which we have
to accumulate such a stock o f grain in store as will, with the aid of the
receipts by rail, enable a steady export movement to be maintained, in
addition to the local demand, without giving room for any important
advance in prices. But if the canal should be suddenly closed by frost
in the last week in November, it would be a serious circumstance.
The period during which the Erie Canal remains closed is usually about
twenty weeks— sometimes as many as twenty-two, and often not more
than eighteen. The largest accumulation of grain in store at this market,
at the close of navigation, has been about fourteen million bushels.
The actual wants of this market for consumption are about 85,000
bushels per d ay ; namely, 15,000 bushels wheat, 35,000 bushels com,
25,000 bushels oats— the balance rye, barley, & c. Thus fourteen million
bushels in store will nearly meet the wants of consumption during the
winter months. But it often happens that the quantity in store at
the close o f navigation is unequally divided, there being a surplus o f one
sort and a deficiency in another. The railroads or speculation must
restore the equilibrium.




376

t r a n s p o r t a t io n

of

breadstoffs.

[November

It is but two years since the railroads began to deliver any considerable
quantities of grain at this market. In the fall o f 1807, we think, we
found at the close o f navigation but about 1,500,000 bushels o f corn in
store— a quantity so notoriously inadequate to our wants, even when sup­
plies from the South were added to it, that a great speculation and a
large advance in prices resulted therefrom. These high prices induced
the Erie railroad to make the needful preparations to bring forward corn
in cars, and very soon we had a supply o f from twenty to thirty thou­
sand bushels per day. The speculation broke down, and every legiti­
mate interest was vastly benefited. This marked a new era in the trans­
portation of grain from the West. W e have since received large quanti­
ties of wheat and oats by the same means. For the eight weeks ending
last Friday, the deliveries of grain at this market by rail amounted to the
handsome aggregate of 3,412,600 bushels, over 70,000 bushels per busi­
ness day and nearly equal to the home wants o f the market. The Erie
road has now many competitors in the business. The New York
Central, in connection with the Hudson River, Railroad, and the Penn­
sylvania and New Jersey Roads, are all engaged in bringing grain to
this market.
During the winter season, these roads cannot bring to us so much
grain as now. They will then be encumbered with large quantities o f
perishable products, which usually seek the market in cold weather.
Dressed hogs, game, and dressed poultry— these justly claim and receive
the preference. But if the deliveries o f grain by rail at this market be
reduced to 50,000 bushels per day, there would not, even then, be danger
of any deficiency in supplies. It is very probable that an accumulation
o f stocks in December will approximate eight million bushels. The
export demand is confined entirely to wheat; and of this, unless the
shipments shall be much larger than for the past few weeks, a stock of
four million bushels will be ample.
Besides, there are routes to the seaboard from the West other than
those leading to New York. Portland is an important point, and nearly
monopolizes the export of oats; Philadelphia and Baltimore can get for­
ward liberal quantifies o f grain by rail. W e noticed the other day the
charter of a vessel to load wheat at Philadelphia for a British port. This
is an unusual circumstance. In former years, that city, as well as Balti­
more, drew on us largely for wheat. There remains to be considered
the Mississippi route, via New Orleans. It is a long and expensive one,
it is true; but during the active export o f cotton, ships at New Orleans
are glad to get some grain for ballast, and will accept low rates. This
may in a measure overcome other obstacles to a movement of grain in
that direction.




18691

377

CONSUMPTION OP COTTON IN EUROPE.

W e conclude, therefore, that although rates for carrying grain from
the growing districts to the seaboard are likely to be high for some months
to come, there is no danger of such a scarcity of supplies at this market
as to promote successful speculation, or seriously interfere with the
regular course o f shipments to Europe, unless something unforeseen
should occur; and we infer that the lateness of the crop c f spring wheat,
and the break in the Erie Canal, are not likely to be attended with the
important effect upon prices which many seem to expect. Still, if they
shall attract attention to the growing importance of increased facilities
for transporting the products o f the West to the seaboard at all seasons
of the year, an important service will have been performed.

CONSUMPTION OF COTTON IN EUROPE.
M. Ott-Trumpler, o f Zurich, issued about the first o f October his interesting
annual Circular respecting the cotton consumption o f Europe the past season, o f
which we have received a cop y by the last steamer. W e can make room this
week only for the follow ing tables showing the consumption. The figures repre­
sent thousands o f bales.
Ameri- In­ Bra­
S uncan.
dian. zil. Egypt. dry. Total
113
260
102 J9
19
513
974 1,625 521
187 340 3,447

Stock in the ports October 1, 1868..
Imp.rts during the season.............

Total....... ................................................................................ 1,087 1,835
Exports to the Continent.............................................................. 153
626

623
78

206
10

159
17

3,960
884

934 1.2-*9
57
346

545
52

196
21

142
33

3,676
489

493

175

129

2,557

.

. 877

Stock, Oct. 1, 1868, at Havre, Marseilles, Bordeau,
Nantes, Antwerp, Amsterdam, Rotterdam, Bremen,
Hamburg, Trieste, and Genoa....................................
21
Imports direct from countries of production at above
named ports........................................................................ 388
Export from England to the Continent, deduction being
made for 11,000 bales, exported from Continent to
153

Cosumption..

913

43

13

2

22

101

233

121

51

245

1,038

624

71

9

14

871

562
17

900
50

205
14

62

281

2,010

1

12

94

545

850

191

61

269

1,916

Sun
Brazil. Egypt, dry.
236
~
684
398
251
708
388
215
342
450
387
255
423
374
324
634
325
208
660
227
160
162
164
122
55

Total.
4,503
4,604
4,147
3,935
3,055
2,593
2,146
1,993

CONSUMPTIONOF EUROPE.

1868-69.................................................................................
1867-68.................................................................................
1856-67....................... -........................................................
1865-66.................................................................................
1864-65.................................................................................
1863-64.................................................................................
1862-63.................................................................................
186 L-62 .................................................................................

American.
1,422
1,735
1,548
1,237
236
242
133
562

1860-61................................................................................. 3,443




407

Indian.
1,763
1,522
1,592
1,633
1,487
1,161
1,464
1,090
674
KQ9

271
97M

4,388
A

878

COTTON MANUFACTURERS

,------ ENGLISH CONSUMPTION.------ ,

t—CONSUMPTION

1863-69....
1867-68....
1866-67....
1865-66....
1864-65....
1R61-64___
1862-63....
1861-62....

Ameri- In- BraSun
cani. dian. zil. Egypt.dry .Total.
.. 877 9L3 493 175 129 2,587
799 533 182 111 2,822
-.1,016 815 298 160 125 2,414
... 846 878 259 186 150 2,319
.. . 187 850 203 285 348 1,873
.. . 178 620 134 219 414 1,565
54 1,332
965 111 163
. . . 304 675 101 122 15 1,217

1860-61....
1859-60....

...2,170 249
...2,135 207

193
218

[November ,

ASSOCIATION.

OP CONTINENT.—.

SunAmeri- In- Bracan. dian. zil. Egypt.dry. Total.
545 850 191 6L 269 1,916
533 723 175 69 277 1,782
532 777 152 55 217 1,733
391 755 164 69 237 1,616
49 637 121 89 286 1,183
64 543 74 106 246 1,033
64 108
814
34 559
49
776
258 415 21 42 40
1,273 425
1,272 385

2,612
2,560

78
55

1776
1,712

STOCK IN ENGLAND SEPTEMBER 30.
1869............ . . 489 11867..
1868.......... . . . 5L3 ]|1866..

911 11865..
945 1 1864.

... 217 | 1861...
. . 329 | 1860...

304 1 1863
490 | 1862

.. 779
. . 954

T he follow ing figures show the imports and consumption in Europe in each
o f the last eight seasons :

1861-62....................
1862-63....................
1863-64....................
1864-65....................
1865-66....................
1866-67....................
1867-68....................
1868-69....................

Stocks in i-----—Imports-------\
Europe
Ameri- Other
Oct. 1.
can. countries.
1,364
54
121 1917
215
2,716
................
250
................
563
250
2,602
................
347
1,565
3,166
2,601
................ 1,143
3,495
................ 1,092
1,572
2,554
3,110
1,362

Total.
2,427
2.436
3,181
3,415
5,078
5,239
5,218
5,086

Stocks at
at cl'-se of -------Consumption-------»
season. Total. Engl’d. Cont’t
1,217
776
1,993
368
2,146
814
250
1,332
1,033
2.588
1,565
563
1,873
1,183
347
3,055
2.319
1,616
3,935
1,143
4,147
2,414
1,733
1,092
3,822
1,782
614
4,604
1,916
2,587
583
4,503

The receipts at the ports o f Spain, Sweden and Russia, from Am erica and
other countries, and the consumption in Italy o f native cotton, are not included
In these tables o f consumption.

ANNUAL REPORT OF THE COTTON MANUFACTURERS’ ASSOCIATION, PRESENTED
OCTOBER 12, 1809.
AtJ the annual meeting, held in N ew Y ork, June 30, 1369, the Statistical R eport embraced
returns from 794 cotton mills, having over 99 per cent o f all the spinning machinery in the
country. The details and results ol the 6 atistics thus obtained appear in the published pro­
ceedings o f th it m ee'ing
We h re r« peat the st te » ent then m a 'e o f the home con umption or cotton, N o th fa n d South, for the year 1867-8, and have, for the greater ftcility o f
com par: eon, chanced the qu anti'ies from pounds to bales of 466 pounds each, th it being the
actual average, as is show n by the table o f weights appended to this report.
Consumption o f cotton, year ending 31st August, 1368:
Northern wills.
M ills returned..
Mills estimated.

693
43

Bales o f cotton
Spindles, used for spinning.
6,4 2,974
855,007
50,000
6,833

736

6

502,974

861,840

Southern Mills.
Mid-* returned .
M i Is estimated,

101
7

247,583
13,000

76,955
4,430

108

260,583

Used in nrlls, otherwise than for spinning,
Quantity returned..........................................
Quantity estim ated............. ..........................

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

81,335
24,165
30 013 —54,208

T ota ls.................................................................... 844
6,763,557
997,433
Deduct for exceptional case* in which the quantity reported was the consuming
capacity, and n ot the ac;uai consum ption..................................................................
31.767
Actual home consumption, North and South, 1867-8

965,666 bales

This consum ption represents the quantity takcn by the hom e mills from the crop o f 1867-8,
except the ►
mall difference in the st »cks held by the mills at the beginning a n i <nd o f the
year.
*
*
*
*
*
*
*
*
The Committee desiring to obtain the mill statistics for 1868-9. for comparison with those o f
the p .eviou s year, and to facilitate the correct preparation o f the annual crop statements,




1869]

COTtON MANUFACTURERS

379

ASSOCIATION.

directed the issue, about the 1st o f August, o f a circular addressed to the managers o f a
the cotton |mills in the country, inclosing a cony, for correction, o f the return for the year
ending August 31,1863, and asking for the statistics o f each mill, for the year ending August

31,18 ft,

*

*

*

*

*

*

*

*

By September 1st the Secretary had received returns from 77 per cent o f the mills reported
last year, and by O ctober 1 -t from 1)0 per cent, o f all these, and from a few mills which did not
then report, but were incladed in the estimates then given. The results are shown in the fol­
low ing ta b le :
SYNOPSIS OP NEW RETURNS TO OCTOBER 1, 1869.
A ver’ e per Otherwise
State.
ills. S p in d les. Yarn. Cotton spun. Spindle.
used.
. 19
M ain1-; ..................
490,424
51.20
2 S%
25,090.047
New Hampshire.
. 43
26
745,930
39,394,541
£2.81
680,481
V erm ont ...........
. 11
22,163
S0%
48.73
1,071,867
112.534
Massachusetts ..
. 14a 2,366,025
2
124,298,128
52 54
168,674
R hode I sla n d ....
89
906,681
36,593,689
40.39
33%
375,000
Conr ec icu t.......
25,559 591
514.549
80
. 73
49.67
267,820
N ew Y o r k ...........
43
439,911
32 %
18,791,162
43.71
749,500
N ew Jersey.........
17
136.002
5,323,718
39.18
se %
19
Pennsylvania___
271,946
18,725,056
08.85
SO
457,909
Delaware ..........
35,103
20 %
7
1,986,886
56.60
M a ry la n d ...........
33,802
12 %
,
8
4,994,237
147.75
O h io.....................
3
13,2*0
10 %
1,643,603
124.24
100,003
1
14
Indiana................
10,800
1,447,908
134.07
I llin o is ................
2
460
27
27,882
60.61
126,503
M issouri..............
3
12,064
n%
1,793,644
148.68
N o r t h ..................
Virginia.............. .
N orth Carolina.
South Carolina.,
G e o r g ia .............
A'.abaraa............
M issis ip p i........
T e x s ..................
Arkansas.......... .
Tennessee......... .
K e n tu ck y ....* , ,
S outh..................
North
South
Total.

512 5,999,110
27,143
7
20,743
15
29,' 84
5
26
73,556
27,364
3.332
.
3
1,716
.
2
516
.
1
9,800
.
7
4,500
.
2

.
.
.
.

28%
14%
12 %
12 %
12%
15%
8%
9%
10
11 %

9

306,75i,964
2,263,168
2,456,741
3,582,595
9,909.947
2,460,738
242,009
200,300
95,363
735,071
788,795

51.13
83.80
120.13
123.54
133.92
89.94
72.63
121.97
184.81
75.
175.29

3,038,365

76

197,759

22,773,713

115.02

. 512

5,999,140
197,759

28%
12 %

306,751,964
22,773,718

51.13
115.02

3,038,368

6,196,S99

28

329,525,682

53.17

3,038,868

12 %
RECAPITULATION.

The mills embraced in last year’ s report that have not now reported were generally c f
small capacity, having in the aggregate only 676,689 spindles.
The returns from 581 mills last year and this year, compare as follow s :
506 Northern mills, which for 1867-8 reported 5,827,947 spindles, consum ing........... 831,559,311
R eport for 1S08-9, 5,977,684 spindles, con sum ing.............................................................. 305,484,085
Show inga falling o ff o f 7.86 per cent, o r ...............................................................................
75 Sou'hern m ils, which for 1867-8 reported 195,921 spindles, consum ing...............
R eport for 1868-9, 195,659 spindles, consum ing..................................................................

26,075,256
27,390,108
22,678,718

Showing a fa llin g off o f 17.20 per cent, o r .........................................................................
4,711,390
Together, 581 mills, which in 1867-8 reported 6,023,868 spindles, co n su m in g .... 358,949,419
R cp jr t for 18n8-9,6,173,343 spindles, consum ing................................................................ 328,162,803
Show ing a fading o ff o f 8.57 per cent, or............................................................................... 30.786,616
T hese 581 mills reported for 1867-8, as cotton used otherwise than for sp in n in g...
4,705,600
And report for 1868-9.................................................................................................................
V,761,676
S how irg a falling c ff o f 41.30 per cent, o r ...........................................................................

1,943,124

It is fu r to assume that a ratio afforded b y returns from 93 p r cent o f the spind'es report
ing last year, ana 89 p ercen t o f all in the United States, taken as they come, w r l be a ju et
and true ratio for the whole m anuftetnriog p wer in the comparison o f the last and the
preceding y e ir’ s work. It is tk refore applied to all the m ills reported anrl unreported in
the follow ing statement o f the home consum ption in the m ihs, North and South, f.ir the vear
186S-9, recaoned, as last year, in bales o f 466 pounds each.
Hales used
Mills.
Spindles. f ,r spinning:.
N orth ..................................................................................... 73(1
6,670.346
767,512
260,000
S o u t h ............................... ................................................. 103
04,998
Used in mills, but not for spinning.................................
31,744
T ota ls..................................................................................... 844
6,930,346
864,554 in 2868-9
A gainst................................................................................... 844
6,763,557
965,666 ___
in 1867-8
Showing a reduction in Northern mills, for s p n n in g ..........................................
65,448 bales
%‘
“
Southern
“
“
.............................
33,£00
“
“
Cotton otherw ise used...................... ..............................
22,464
Total




101,412

*»

830

cotton

m an ufacturers’

[November,

a s s o c ia t io n .

Our report in June, after remarking upon the con ide^ab’ e con traction in the production of
heavy g< ode after January g a d , “ The aggregate for the whole year is believed to be less
than lor the year preceding, b n ' this can be determined only by renewed returns from the
m ills to be made at the close o f the season, 31st August.” Vve have those returns, and they
confirm the im pression which was com m on am ong mnnufacturers th t the hom e <on sumption
has been less than in the preceding year. On the other hand the st.cck o f cotton held in mills
A ugust 31, lb69. was larger than that held August 31. 1-68. The excess this year was esti­
mated by the C o m m e r c i a l a n d F i n a n c i a l C h k o n i c l e of New Y ork to be 3C,0 0 hales. That
estimate was too small, as shown b y later «evelopm erts, as to stocks held, and by the limited
quantities taken b y epnners since September 1st,—abou'. 10,000 bales per week.
The actual consnm pt'on having b een ..............................................................................
A nd the increase o f stock in the mi ls .............................................................................

804,954 hales
50,000 “

The whole quantity taken by the manufacturers w a s..................................................

914,254

“

F or many years the S h ip p in g a n d C om m ercia t L is t o f N ew York, was justly the standard
authority for annual sta 'e ■enis o f the cotton c n -p s o f the United States. Down to 1>62 its
statements were well prepared from data, obtained at the several «e ports o f the South
whence i early the wh )le c op was snipped to either 'o r ilm r orF o re i n ports, and t ie r« su ts
(excln di' g an estim ted consum ptio i south o f the P o om ac) were approximately co»rect, and
a Viluab e co: tribution to the indu trial stati-tics o f the country. Y our com m it ee feel com ­
pel ed to show ihat the S h ip p in g L is t is no longer to b - regarded as authority, and to expose
the errors which have rendered its cotton statistics worse than useless since the lo?e o f the
war. They do it reluctantly.
*
*
*
*
111 the authorities agree subst ntia-ly in the
ststi tics o f exports forei n, and o f the stocks at ths beginn'ng and end o f the year. They
also a°- ee in the s'atistics o f Southern ports. Tt is the cotton m oved by inland routes which
c*4ves occ-sion for confotdon and opportun ty for misstatement. Tbe attempt to apportion its
quantiti s to mill and ma ket, respectively, by estima ion onlv, was in a matter o f this conse­
quence, a fault. Persistence in such a course, after its errors have been i ointed out, becem es
w orse than a fault. Any error thus produced in tbe amount o f “ receip ts ” o f cotton required
a c o r r spo ding error in the “ hom e co su m ption ” to b a ’ance it. The item was marie e a s tic ,
com pressible, or expansible, to suit the exigencies o f the case, and corresp md to the required
amount o f “ n ceiprs at the ports.” But in this item o f h me consumption o f cotton, both
planter- and manufacturers had a strong interest, prom pting a desire to know 'h e 'ruth about
it In ascertaining the consum ption and its proportions. North and South, the As ociation
has established a statistics d etector. The several q u a n tites: 3, o f cotton r* t in< clfor home
uses or deetr< yed ; 2, oUcotton exported ; 3, o f s ocks in the port* at the beginning and end
o f the y e a r; are al the elements requir. d for an exact statement o f the cotton crop.
The sta ement o f the S h ip p in g L is t was as fo llo w s :
T otal Crop o f the United States ..................................................................................bales 2,260,557
37,398
Add Stocks on hand, 1st September, 1868.................................................................... “
2,297,955

Makes a supply o f ............................................
Deduct ther. fr m,
Export to foreign p o rts ........................
Stock* on ha d, 1-t Sept ;mber, 1869
Burn- in transit......................................
Manufactured in V irginia...............................

1.444,668
11,160
203

20,0C0

1,476,031

T iv-pti for hom e use North o f the Pi tomac and Ohio Rivers ........................................
1 Ai
“
“ South “
“
“
andburnt,............................

821.924
173,293

T ot*l consum ed and burnt in the U cited States, (including burnt at the p orts,)
3868-9........................ ............................................................................................................

935,127

I t w ill hft observed that here, a* in years p st, the S h ip p in g L ss t excludes from “ the
crop ” al1 the cotton which it estim ates to have been retai ed in the South, except 20,000 bales
173,203
in Virginia, and 203 b ;les burot. The quantity excluded i s ......................... bales
2,260,557
w hichradded to the “ Total C rop ” as above
2,433,760

would show an aggregate production of.

The w ool consumed in the W estern States, is not excluded from any annual statement o f the
c’ ip of w ool in i t e United States.
The cotton goods c nsnmed in Great Britain are not excluded from the Commercial or Board
o f Trade Statement ot British manufactures. There is no reason wh v the Southern consumption
c f cotton should be excluded fr< m the cot on crop o ' the United States.
The S H p p i i g L ist sta ed the quantities respectively taken for hom e use “ north c f the
P otom ac and Ohio Rivers,” and south o f the Potom ac aDd Ohio Rivers, burnt, &c., in its
annual crop statements for four years, as fo llo w s :
1865-6,
156615671868-9.

7
8,

North.
601,085
573,367
799,817
821,924

South.
127,640
380,672
168,348
173,203

Total.
731,725
854,0S9
968,165
995,127

During the last year ample prpof has been given that the States sou h o f the Potom ac River
never consumed, for spinning purposes, in mills and lamilies, (except during the late war)
so much as 85,000 bales o f cotton in a year. The use o f cotton for mattresses and other uphol­
stery nearly or quite ceased with the advent of war prices. The cotton burnt or otherwise




1869]

COTTON MANUFACTURERS7 ASSOCIATION.

381

destroyed, after being baled, has n ot this year exceeded 4,500 bales. Statistics a e w orse
than useless if not accurate. The questi n »t. issue is not merely whether the Southern con­
sumption o f c >'t on, the past year, was v0.000 bales or 173,00 < bales, th ugh that is an impor­
tant o n e ; Out the question is, whether the public is not nrsled by receiving >s standard
authority a com i!a ion ra d cally defoctlve. In the form used by the S a tjip in g L is /, the sub­
traction o f 173,203 bales f om the p oduction o f the country, instead o f ed,0c0 or 85,OvO baits
left the crop ’ ’ s e a l er by the » xcess sub: traded.
Thus, i f the true Southern consum ption only had been deducted, the crop o f 1868-0 would
have beeu about 2,350,000 bal 8 assuming that the other data and the m thod o f the S h ip p in g
L is t were correct. By similar pioces.s the cr p of 1867-8 wou d ha' e been fhowm to be over
2,500,000 bales; o f 18'>t -7 over 2,1 0,000 ba es ; o f 18- 5-6 over 2.20 ,0C0bales, that is, i f the several
amounts approp ia ed in excess for Southern use were transferred to the gov* r.il appropria­
tions tor No*them use, and thence counted in the “ c r o p '- (as the S h ip p in g L is t always
reckoned the Not* h rn consum ption in the crop), then the i-everal cr ;ps would have been
increase i, as sta.ed. F or instance, the S h ip p in g L is t's annual statement for 1866-7, stated
the crop th u s :
Total crop o f the Un ted States ..............................................................................................
Stock on m ud, 1st September, 1866................................................................................ . . . .

1,051,988
283.692

Makes a supply < f ............................................................................................................... 2,?35,680
Deduct—E xports to foreign p orts......................................................................... 1,553,315
S ock on hand, Sept-.-mber 1, 1S67.................. .....................................
80,2! 6
Burnt and manufactured in Virginia ..................................................
28,672
------------ 1,662,313
Taken for home use north ot V ir g in ia ....................................................................................
“
“
“ in Virginia aud elsewhere throughout the U. S................................
ToU>l consumed in the United States, in c lu d iD g burnt, & c .......................................

57.3,367
280,672
854,03

The statement o f the Sou’ hern consum ption at 280,672 bales was so obviously w rong that
it was severely assai ed at the time, and in its next year’ s annual statement the S u p p i n g
L is t changed the figures in its t ib e, »nd brought forward the home consum ption o f 1866-7,
thus: North o f Virgii.ia, 697,367; elsewhere, 15b,672; haviDg taken 124,000 biles from the
South aad added it to the ^orth, but without any note or other reference to this remarkable
cnange. Tula increase o f the N uthern con-um ption, it will b e seen, necessita ed a like
increase in t e crop receipts, because the ex o o its and stocks were fix* d ficts, and the cr- p
receipts and consum ption enough to balance them were the only elastic or convertible quan­
tities.
The statement amended by the S h ip p in g L is t's ow n figures m ust have stood th u s:
Total crop o f the United States, 1856-7.........................................................................bales. 2,075,989
Stock on hand Sept. 1, 1866........................................................ ................................................
283,692
........ 9,359,680
Make* a supp’ y o f ................................................. . ..................................... .
Deduct—E xports to foreign p o rts .................... ...................................................... 1,553,345
................................
80,296
S ocks in ports Sept. 1, 1867...........................
Burnt and manufactured in V irginia........... ...........................................
28,672
------------- 1,652,313
Taken for home use, north o f V irginia....................................................................
Taken for home use in V i rginia and elsewhere....................................................

697,367
156,672

Total consumed in the United States (Including burnt, & c.),

854.039

I f 1he crop had been so stated, what would have becom e o f the co* tracts, &c., that were
settled in accordance with the S h ip p in g L is t 's statement, m ak ng the crop lets than tw o m il­
lion bales ?
So much to i lustrate the untrustworthy character o f the system that has been fol’owed.
Beturning to the details of the last c o p , th com m ittee present the following as a true state­
ment ot the entire production o f cotton for 186S-9 in the United States :
Heme uses—In m il s North, spu n....................................................................ba’ es. 767.512
l a mills South, spun................................................................................ 64,998
Ia mills North and South, not spun..................................................... 31,744
l a mills North and South, added to stock .......................................... 50,000
Ia hom e spinning, <&c., S o u ta ..............................................................
7,500
Burnt oi otherwise destroyed after packing......................................
4,500
----------- 926,251
E xports foreign, as per N ew Y ork tables.............................................. 1,448,000
“
“
to and tarough Canada.......... .................. ...................
18,000
-----------1,486,000
D isposed o f through the year.....................................................................
Deduct—Difference in stock in p o r t s :
Stock l 4t September, 1-363................................................................. 38.130
Stock 1st September, 1869.....................................
.. ............... 12,343
-------T otal production, 1&58-9..




2,392,254

25,787
2,366,467

332

[N o v ember,

STATE DEBT OF ARKANSAS.

The com m ittee, after a careful examination o f every point involved, feel entire confidence
in the substantial correctness o f the statement o f the crop o f 1868-9 which they hare presented
above. Y e t they would not wholly rely upon any one method cr fjrm o f statement or collation
o f fact", i f another is pract cable.
*
*
*
*
*
*
*
*
A s in the ftatistics o f coi ton, quantities are usually stated in bales, the committee have
deemed it quite important thar, the true average weigh.s o f bales o f United States cotton
shou'd be accurately ascertained, and they have instituted inquiries to this end.
Ia calling for returns from the mil s o f their actual consum ption the past year, it was
requested that the answers should be in both pounds and bales. The request was generally
com plied w i'h ; seventy p e rce n t (in consum ing capacity) o f the Northern m ills reported in
the f rm cesired, and, w ith a veiy few exceptions, in such detail as to indicate that their books
had been carefully consulted.
From these returns it appeared that o f 338 mills, consum ing 244.509,147 pounds, which
was 80 per cent o f the whole consumption, or 525,441 bales, each bale averaged 465.34 ponnds.
*
*
*
*
*
*
*
*
*
*
The fo ’ ow ing averages for the several localities stated have been deduced from a great
number o f invoices from each. Applying these averages to the quantities produced in the
same localities, w e have the follow ing result for 1868-9:
N ew Orleans and Texas . . .
M obile — .............................
Savannah........................... •
C h a r l e s t o n ---------.............................

Memphis and vicinity .........
N a s h v ille , & c . ( i n l a n d ) . . . . . .

Virginia and North Carolina,

Bale0.
. 943.022
230.726
357,253
198,943
314 545
131,000
65.420

Average.
463
4>7
475
440
472
460
425

Pounds.
436,619.186
114,670,822
169,695,175
87,534,920
162,625,240
60.260,000
27,803,500

2,270,909

466.4.5

1,059,208,843

The average net weight o f all the American (United States) cotton received at Liverpool the
Iasi three year was 444 pounds per bale. A s gross weights are a’ ways given in our statistics,
the tar (i-qnal to 4% per cent of the gross weights) must be added to this average, and
the result will be an average o f 465 pounds. A further test has been made by the com m ittee.
Bv the <ourtesy o f manufacturers and merchants o f Boston dealing in cotton, they collected
from them the a ctuil invoice w eights o f nearly 180,000 bales, taken without selection, o f the
crop o f 1868-9, as follow s:
Average
Bales.
Pounds.
w e g h t.
Prom m erchants...................... ........................................................ 85,561
37,256,591
474.31
From m anufacturers................................................................... .. 93,564
44,167,287
472.05
T ota l..........................................................................................

179,125

81,423,878

473.13

O f this i he greater part was from Memphis, M obile, Savannah and New Orleans, and it 8
average is above the average t f the whole crop.
A s the result o f these several inquiries, we have the follow in g :
Average weight o f ba es—As per returns o 1 North, rn m i.Is................ lb s ....................... 465 3-10
Invoices from Soul hern m arkets................................... 466>£
Liverpool weights,with tare restored ......................... 465
boston w eights................................................................. 473X
And these result in the com m on average used by the committee, at 468 pounds per bale for the
whole c r .p .
. ... ,
Respecfully submitted.

THE STATE DEBT OF ARKANSAS*
The State o f Arkansas in 1827 and 1838 issued bonds to the amount o f one million
seven hundred and seventy-two thousand dollars, to establish a banking institution
in that State.
The failure of the banks to which the bonds were issued, and which were
expected to pay the interest upon them semi-annually, left these obligations unpro­
vided for, and since 1841 the State has been in default in regard to them.
The Legislature of Arkansas at its last session passed an act authorizing the issue of
new bonds in payment of the principal and interest upon the whole debt. The new
bonds amount, with back interest, to the sum of four million four hundred and twentyfive theueand dollars; they have been issued, and are now ready to be exchanged at
the American Exchange National Bank in this city ; and provision has been made by
law for raising a sufficient amount by taxation to pay the interest upon these new
bonds as it becomes due.
This act of the State o f Arkansas is honorable to its people, an 1 they will find it
advantageous to themselves in the growing prosperity and improved credit of tie
State.
„ _




IBC3]

S3

PUBLIC t>EpT OP TI'IE UNITED SPATES,

THE DEBT STATEMENT FOR OCTOBER.
T h i fallow in g is the official statem ent o f the pu blic debt, as appears
from the book s and Treasurer’s returns at the crnse o f business on the
last day o f O cto b e r, 1 8 6 9 :
SDebt bearing interest in C oin,

Accrued
Character
Amount
o f Issue.
When Payable.
Outstanding.
Interest.
5’s, B o n d s........A fte r 15 years from January 1,1859................................. $20,000,000 00
$333,333 33
5’s, Bonds . . ...... After 10 years from January 1,1861..................................
7,022,000 00
H 7,033 33
363,300 00
6’s o f 1881........... After December 31,1830 ....................................................
18,415,000 00
18,900 00
6’s,Oreg.War,’81.Redeemable20 years from July 1,1861........................ ...
945,000 00
189,317,600 00 3,786,352 00
6’8 o f 1831........... At pleas, after 20 years from June 30, *61...........................
6 ’s, 5-20s.............. 20 years from May, 1,1862*...............................................
514,771,600 00 15,443,148 00
6 ’s o f 1881........... After June 30,1881................................................................
75,0 0,000 00 1,500,000 00
5’s, 10-40’s . . . . ___40 years from March 1 ,1864f............................................
194,567,300 CO 1,621,394 17
116,475 00
6’s, 5-20’s ............20 years from November 1,1864*.................
3;8S2,500 00
6’s, 5-20’s ............20 years from November 1,1864*......................................
125,561,300 00 3,766,839 00
6’s, 5 20’s ........... .20 years from November 1,1865*......................................
203,327,250 00 6,099,817 50
6 ’s, 5-20’s ............2) years from July 1,1865*..................................................
332,998,950 00 6,659,979 00
379,588,950 00 2,591.779 00
6’s, 5-20’s ............20 years from July 1,1867* ...............................................
6’s, 5-20’s ........... 20 years from July 1,1868*.................................................
42,539,350 00
850,787 00
Aggregate o f debt bearing interest in coin .......................................... $2,107,986,800 00 $48,274,137 33
Coupons due, not presented for payment................... ........... ..............................
3,750,706 25
Total interest........................... .............................. ......................................................... $52,024,343 58

D ebt b earin g in terest in L a w fu l M on ey.
3's, Certificates. .On demand (interest estimated)......................................
3 ’s, Navy pen. fd.Interest only applic. to pay. o f pensions...........................
Aggregate o f debt bearing interest in lawful money.

$47,610,COO 00 $1,071,900 00
14,009,000 00
149,000 CO
$61,640,000 00 $1,211,900 00

D ebt o n w liic li interest lias ceased since m a tu rity .
6 ’s, B on d s......... Matured
6’s, Bonds........... Matured
6’s, Bonds........... Matured

December 31,18G2..................
December 31,1867.....................
July 1,1868 (9 months’ inter.)..
5’s, Texas indem.Matured December 31,1864....................
Var., Tr’ v notes.Matured at various d a te s ......................
5@5K’s ,'fr’y n ’es.Matured March 1,1859 ............................
6’s, Treas. notes.[Matured April and May, 1863.................
7 3-10’s, 3 years.. .Matured August 19 and October 1.1864.
5’s, 1 & 2 vears.. .Matured from Jan. 7 to April 1,1866 __
6’s, Certif. o f ind.Matured at various dates in 1S66...........
6 ’s, Comp. int. n.Matured June 10,1867, and May 15,1868.
4,5& 6’s, Temp. 1.Matured October 15, 1866 ........................
7 3-10’s, 3 years...Matured August 15, 1867, and June 15.
and July 15,1868....................................
Aggr’te o f debt on which int. has ceased since matur.

$ 6,000 00

14,150 00
58,700 00
242,000 00
103,614 64
2,400 00
3,250 00
31.000 00
300,852 00
12.000 00

2,576 210 00
182,410 00

$360 00
849 0 0
2,641 50
12,100 00

3,072 85
120 C.0

195 04
1,131 50
15,042 6 0
720 00
495,901 46
7,564 65

857,400 00

31,295 10

$4,389,986 64

$570,993 1 6

D ebt bearing no interest,
Authorizing acts.
Character o f issue.
July 17,1861 and Feb. 12,1862........... Demand n o te s ..............................
Feb. 25 & July 11, ’62, & Mar. 3, ’63 .. U. S. legal-tender notes..............
July 17,1862......................... ............. Postal currency — .....................
March 3,1863 and June 30,1864........ Fractional cu rrency...................
March 3,1863......................................Certificates for gold deposited..

Amt. ontstand.
.. .
$113,258 50
... 356,000,000 00
•l 37,035,442 38
!.. 28,731,520 00

Aggregate o f debt bearing no interest

R eca p itu lation .
D e b t b e a r in g I n t e r e s t

in

C o i n — B onds a t 5 p . ce n t.
B o n d s at 6 p . ce n t.

,$421,SS0,220 88
Amount
Outstanding.
$221,581,300 00
1,863,317,C00 00

Interest

Total debt bearing interest in coin .......................................................$2,107,936,800 00 $52,024,84 58
D e b t b e a r in g In t e r e s t i n La w f u l Mo n k *—

rertificates at 3 per cent.......................................................................
Navy .pen; ion fund, at 3 per cent........................................................

$47,640,000 0)
14,000,100 00

Total debt bearing interest in lawful m on ey ......................................

$61,640,000 00

1,211,900 00

s i n c e m a t u r i t y .......... ...........................

4,389,986 64

573 993 16

Demand and legal tender notes...........................................................
Postal and fractional curiency............................................................
Certificates o f gold deposited.............................................................

$356,113,258 50
37,03 >.442 38
28,731,520 00

D ebt

o n w h ic h

I n t . has c e a s e d

D e b t b e a r in g no I n t e r e s t —

Total debt bearing no interest..............................................................

$421,880,220*

T o ta l.................................................................................................... $2,595,847.(tT
$53,807,73<i 74
Total debt, prin. & int., to date, including coupons due not presentedfor paymen,. $2,’’-49,654,'*44 26*
1
* These bonds are redeemable at any time .after 5 years from the date here given and payable
after 20 years.
1 These bonds arc tdcemable at any time after 10 years from the date here given and payable
40 years.




384

\N ovem ler,

DEBT OF KORTH CAROLINA,

A m o u n t tn t h e T r e a s u r y —

Coin............................................................................................. ................................
C urrency.............................. *................................ ......................... . . . .........., . . .
Sinkingfund in United states coin int’st bonds, and accrued interest thereon
Other United States coin interest bonds purchased, and accrued interest
thereon...............................*.......................... . ........................................................

1116,994.211 69>
7,248,295 24
18,260,001 47
46,020,546 56

T o t a l . ... ... ....................................................................................................... ........
$188,523,554 90
Debt, less amount in the Treasury...........................................................................
$2,461,131,189 36
Debt, less amount in the Treasury on the 1st ultimo.....................................................
2^468,495,072 1JL
Decrease o f debt during the past m o n th ....,..........................................................
Decrease o f debt since March 1,1869 ....................................................

7,363.882 75
$64,132,070 65

B o n d s issued to tlie Pacific R a ilro a d C om panies, Interest payable in
L a w fu l M oney,
Interest
Interest
Interest Balance o f
Amount
accrued
paid by
repaid by inte’t paid
outstanding, and not
United transp'tion by United
yet paid.
States, o f mails,&c. States.
$26,638,000 00 $533,138 97 $2,081,869 89$1,105,941 51 $975,928 30

Character o f Issue.

Union Pacific Co............................. .—
Kansas Pacific, late U.P...........................
6,303 000 00 126,060 CO 834313 09 631,224 99 208,588 18
E. D ..........................................................
1,628,320 00 32,564 40
96.508 69
Sioux City and Pacific.............................
16 27
96,491 42
2,362,000 00 41,254 22 588,816 83
Central P a cific.......................................... 22,009^)00 00 439,594 86 1,180,399 75 | 94,236 48 1,624,960 10
Central Branch Union Pacific, assignees
1,690,000 00 32,000 00 205,808 26
5,290 79 200,517 47
o f Atchison & Pike’s P ’k .....................
...........
46,606 03
1,643,0.0 00 10,135 64
46,606 03
Western P a cific.........................................
62,188,320 001,215,850 09 4,984,822 54 1,886,730 04 3,148,092 50

Total issued

DEBT OF WORTH CAROLINA,
A pamphlet upon the debt of North Carolina has recently been issued by H.
Bowlby Wil 8on,Esq., No. 7 Nassau street, which contains a very comolete statement
of the present situation of the financial affairs o f that State. "We have only space to
give a summary of the valuable contents of this pamphlet, and those of our readers
who are interested in the subject will do well to procure a copy for careful perusal.
O

f

the

debt

of

north

Ca r o l i n a

at

the

com m encem ent

Y E A R , OCTOBER 1ST, 1 8 6 8 , AND APPROPRIATIONS SINCE
SECTION 6 AND 8
p u b l ic

w o rk s.

OF ARTICLE
T

h ose

of

the

MADE, IN

current

f is c a l

CONFORMITY W IT H

Y^. OF THE N E W CONSTITUTION, IN AID OF U N F IN L U k I)

m arked

w it h

an

a s t e r is k , t h u s

(* ),

are

* p e c ia l

v

tak

BONDS.

Name o f Corporation.
Reported October 1,1868.................. .
W estern (Coalfield) R. R. C o .................. .
♦Ailantic, Tennessee & Ohio R. R . C o ........
♦Wilmington, Charleston & Ruth. R . R . Co.

Reported October 1, 1868................................
Bonds for funding interest...........................
♦Williamston & T a ib o r R. R . C o ................
* Wes-tern N . C. R . R . (Eastern D ivision).
*
“
“
“
(W estern
“
),

*

«(

ti

»* ?

“

«

j

*
“
“
“
(Eastern
“
)
♦Northwestern N . C . R . R . C o....................
♦Western (Coalfield) R . R . C o ....................

Date o f
N ew Issues.
July 1, 1868,
July 1 , 1P69,
July 1,1869,

Oct 1,1868,

tt
it
ti

«t
tt

A pril 1,1869,
i(

it

Jan. & July
Am ount.
$10,273,245
500,000
2 , 000,000

4,000,000
*16,773,245
April & Oct.
$4,936,700
2.000,
800,000
340,000
4.000.
8,666,600
333,400
1.440.000
1.600.000
$17,516,700

January and July B onds................................. ....................................................... . .........
A pril and October B o n d s............................................................... ............................ ..

$16,773,245
17,516,700

Chargeable on general tovenue.............................. ............... ............... .........................
Special tax or preferred d e b t .™ .....................................................................................

$34,289,945
$18,049,945
16,240,000

Total d ebt........................... ................................................................... ....................
$34,289,945
The old and new debts appear to hold the same rank as charges on the revenue.

Mr. Wilson remarks on the debt as follows : “ It will be seen that the total debt o f
North Carolina amounts to a little over thirty-four and one quarter millions cf




COO
000

1869]

TENNESSEE DEBT.

385

dollars (134,289,945), all of which bears an interest of six per cent, payable half
yearly.
“ Of this amount eighteen millions anl forty-nine thousand nine hundred and fortyfive dollars ($18,049,945) is chargeable, principal and interest, on the general
revenues o f the State, and sixteen millions two hundred and forty thousand dollars
($16,240,000) are provided for by special taxes at rates specified in Statement No. 2 ,
which is in conform ity with the requirements of Section- 5 and 8 of Article V of the
new Constitution. The effect of this legislation is to make the new issue of bonds,
since first October, 1868. a preferrence charge on the entire assessable property of
the State. Whatever m aybe said respecting the policy of creating what, in effect
is a preferred debt, the fact nevertheless exists. In o her words, the holders of the
first class of be nds must rely on the future development of the industrial resources of
the State for the means to meet the interest thereon, wLiist those who hold the sec nd
class will receive prompt payment, if the valuation of the assessable propeity
amounts to enough to cover the whole issue.
The special tax authorized to be levied by the several acts, is equal in the aggre­
gate to 47.08 of one per cent on the whole assessable property of the State, which, as
will hen after be seen, amounts, on a close estimate founded on the last census, to
over $250,000,000. The sum that will accrue and be applicable to the interest on
the gross amount o f special tax bonds will amount to $1,177,000, while the interest
is only $974,400, leaving an annual surplus of $202,600, as a sinking fund.

TENNESSEE DEBT,
The triennial report of the Comptroller of the State of Tennessee, as submitt ;d
to the General Assembly, shows the following relative to the State finances :
To balance in the Treasury Oct. 1,1867, $5S9,950 54.
Lsss the follawing credits: Over checks in banks, $ 0,016 3 0 ; paid members of
the Legislature by Dr. Stanford, Treasurer, $1,932 84 ; Bank of Tennessee monet,
$311 6 4 ; Tennessee National Bank, Memphis, $58,142 71, making a total of $90,403 49, which left an actual balance in the Treasury of $499,547.
Amounts paid into the Treasury on warrants issued for the two years ending
Nov. 30, 1869, and on previous issues, $5,387,629 56. Grand total received and
in the Treasury, $5,887,176 90.
Within the same time there has been paid out of the Treasury $5,857,967 06 ;
leaving in the Treasury Oct. 1, 1869, $29,209 54.
The following gives the receipts and expenditures for the first year ending Oct. 1,
1878 :
To balance in the Treasury, Oct. 1, 1867, $499,547 05.
Payments into the Treasury on warrants issued this year, and on former issues,
$2,545,747 49.
Payments out of the Treasury on warrants issued this year, and on former issu-s,
$3,023,945 52, leaving a balance in the Treasury on the 1st of October, 1868, of
$23,349 02.
The following gives the receipts and expenditures for the second year, ending
Oct. 1 , 1869:
To balance in the Treasury, Oct. 1, 1868, $21,349 02.
Payments into the Treasury on warrants issued this year, and cn previous issues,
$2,842,209 06.
Payments out o f the Treasury on warrants issued this year, and on former issues,
$2,834,348 54.
Balance ia the Treasury 1st October, 1869, $29,209 54.
The following is a statement of the State debt proper :
Turnpike................
$1,228,856 66
Bank o f T enn essee..............................................................................
1,000,000 00
Railroads...................................................................................................................................
410,250 00
Hermitase Purchase.......... .....................................................................................................
48,000 00
State C apitol. . . . .............
658,000 00
T otal................................................................ ................................................................$3,344,606 66
Funded Interest.......................................................................................................................
735,553 00

Total...............................................................................................................$4,030,159




66

380

TESTS OF STEEL KAILS.

[Novem ber,

The Slate has loaned to turnpike roads $545,000 in bonds.
Tho following is a statement of the Railroad deb t:
Stale bonds loaned............................................................................................................. . . $26,412,007
Bonds indorsed by the State .................................................................................................
2,1311,000
Funded interest ........................................................................................................................
0,210,040
2,306,477
Interest to July 1, 1866............. ......................... ............ ......................................................
T otal....................................................................................................................................... $34,127,524

Claim of the United States vs. Edgefield and Kentucky Railroad assumed*
$130,804.
Claim of the Ucited States vs. Memphis and Clarksville Railroad, assumed,
$380,756 24.
This added to the former total, make3 $34,639,084 89.
The total debt, including State debt proper, bonds loaned to turnpikes, bonds
loaned to railroads, is, by the above figures, $39,264,244 55.
Since the war there have been loaned to the railroad companies, in bonds, $13,292,00\ and to turnpike companies, in bonds, $55,000—making a total of $13,347,000.
The following despatch is o f interest in this connection :
N ashville , Oct. 18.— In the Senate, to-day, the following resolutions were unani
mou-ly adopted :
R esolved , That the people of Tennessee will never signalize their restoration to
the control of public affairs by countenancing, in any manner, a disregard of their
public obligations.
R esolved, That under strict retrenchment and rigid economy in all other respects,
all the avaiable revenues and resources of the State should be faithfully appro­
priated to the payment of the interest on our bonded debt, and the _security of
the principal at maturity, far which they are in honor bound.
Mr. A. J. Fletcher, Secretary of State of Tennessee, in a letter to the New York
T im es remarks that statements to the effect that the business of cancelling o li bonds
and issuing new ones has been conducted in a careless manner, without full and accurate
record o f transactions, are all untrue, and that all the proper books have been kept
and the business conducted with the ,usual care practiced in such operations.
He says further:
“ Any able business man, if he could be untrammeled, can take charge of the finan­
ces of Tennessee, and by a judicious management o f the State's lien on her rail­
roads, reduce the debt of the State in twelve months to nine million dollars— a sum
that the people o f the Stale would not be conscious of. Half of the entire debt rests
upon the railroad companies who pay (heir interest without difficulty, and who are
already considering the project of buying in the bonds of the State to an extent, suffi­
cient to extinguish their entire liability to the State. This would certainly be sound
financial policy on their part, and as the Louisville and Nasbvil e Riilroad Company
has done so, strong hopes are entertained that other companies wi 1 follow.
“ Your correspondent gives the new bondholders the comforting assurance that
their interest will not be paid for ten year . The duratiun of the su-pjujon of the
payment of the interest on the State debt will depend upon the action of the Leg­
islature, now about to commence. Some of the ablest men in the Stite are members
of that body, includi g learned lawyers and experienced business men and
large properly holders.
Of course no prediction can be safely made as to the
duration of the suspension, but there is no reason why payment should not be resumed
in two years.

TESTS OF STEEL RAILS.
The circular of Messrs. John A . Griswold & Co., of Troy, New York, thu3 describe
their method of testing steel rails :
*•1st. A testing ingot from each five-ton ladleful o f liquid steel is hammered into
a bar and tested for malleability aud hardness, and especially for toughness, by
bending it double cold. In case any test bar falls below the standard establi-had
as suitable for rails, all the ingots cast from that ladlefal of steel are laid aside fir
other uses.
“ 21. A ll the ingots, and each rail rolled from them, are stamped with the number




1869]

387

RAILROAD ITEMS.

o f the charge or ladleful. A piece is cut from one rail in each charge, and tested
by placing it on iron supports a foot apart, and dropping a weight of five tons upon
the middle of it from a height proportioned to the pattern of rail. A blow equiv­
alent to a ton weight falling 1 0 to 15 feet i3 considered a severe test. W e use a
five-tone weight falling from a less height, believing that it more nearly represents in
kind (although it of course exaggerates in severity) the test o f actual service in the
track.
“ In case a test rail does not stand the blow deemed proper and agreed upon,
the whole of the rails made from that charge or ladleful of steel are marked No. 2,
and sold for use in sidings, where their possible breaking would do no great harm,
and where their greater hardness and resistence to wear would be specially valuable.
“ In addition to this double test, the rails are rigidly inspected for surface imper­
fections.
“ We believe that these teats render it practically impossible for us to send out
rails of inferior quality.
‘.‘ We further invite railway companies to send inspectors to our works to wi ness
the tests mentioned, and other tests and inspections agree 1 upon.”

RAILROAD ITEMS.
N orth C a r o l in a R a ilr o a d .— The report of this company f> r the year en 'ing

May 31, 1869, shows that the earnings and expenditures are as follows :
EARNINGS.

F rom p a ss e n g e rs ........................................
$196,187 95
“ fr e ig h t .............................................
354,140 90
“ m a lls ....................................................................................................................................
16,7-25 00
“ rent o f cars......................................................................
4,843 64
T o ta l.................................................................................................................. , .............. $581,897 49
EXPENDITURES.

Conducting transportation...................................................................................... ... *—* $103,174 62
Los* an t damage..................
................................... .........................................................
2,556 61
Maintenance o f m otive p o w e r................................................................................................
25,879 63
Maintenance o f cars....................................... ........................................................................
37,548 27
Mail ten nee o f road .............................................................................................................
92,703 27
BuildiDgs and b r id g e s ............................................................................................. ................
10,901 28
N ew raoro d iron, chairs and spik es............................................................................... . 72,655 34
Subsistence for hands..........................................................................................................
17,479 66
T ota l........................................................... ........................................................... .
. . . $101,110 87
N et operating exp en ses.......................................................................................................... $261,233 00
Leaving as net incom e over operating exp en ses.............................................................. 320,664 40

Of the above amount $139,877 is regarded as extraordinary expenditures.
The earnings and expenses for four years past have been aa follows :
F or year ending May 31, 1866,
“
“
May 31,1867.
“
“
May 31,1868,
“
“
May 31,1869.

Pasaengers.
,...$198,662
. . . 201,762
. . . . 172,775
196,188

Freight.
$599,730
316,797
365,165
385,710

T otal.
$798,392
519,559
537,940
581,S98

Expenses for the fiscal year ending—
M ay
“
“
“

31,1866 ......................................................................
31,1867......................................................................
31,1868 ..............................................................
31, 1869.......................................................................

Old.
$71,045
244,323
97,130
88,972

33
49
79
99

New.
$913,330 46
44 ,132 74
411,395 64
401,110 87

T otal.
$984,375 79
6)0,456 83
508,526 43
470,083 86

The debt of the company, as shown in the financial statement, is $677,859 04.
Considering the assets on hand of $110,522 93 applied to this debt, we have the sum
o f $567,336 11, and irom this take the probable deduction of $33,656 39, which
will be on the Negro bonds given in 1864 and 1865, and it will leave a debt of
$533,679 72. The President remarks:
“ It i9 the desire of the administration to have all the debt in the mortgage bonds
of the company running twenty years. O f this debt there is $146,000 in the twenty
year bonds, to which add $15,230, the balance on Dividend No. 9, and the scrip




388

[N ovem bery

RAILROAD ITEMS.

■which is convertible into such bonds, and it makes $1 61,230, which sum will reduce
the debt to be changed into the twenty year bonds to $372,449 72, which change
can be easily effected by the assistance of our stockholders.
“ To manage the road with success and pay dividends, to give it credit in the finan­
cial circles, and even along its line, it is necessary that its present liabilities be so
arranged that its current expenses can be paid promptly, and the dividends and other
debts cashed by the Treasurer as they are made or become due. The financial state­
ment shows why no dividend is declared. I consider it just to the stockholders that
not less than six per cert be paid, and that in cash. It is very unwise to pay
dividends in the bonds of the corporation when it subjects the bonds to such heavy
discounts as have been the past year, which, if continued, would soon lead to bank*
ruptcy, thereby depriving you of your all— your stock.
AMOUNT OF BONDS I38UHD UNDER THE MORTGAGE.

“ At ycur annual meeting in 1867 it was ordered that $800,000 first mortgage
bonds be issued, and at your last annual meeting a resolution was passed authorizing
the President and Directors to issue $700,000 more— making in all $1,500,000, the
total amount of mortgage on the road.
“ It has not been necessary to issue any Bonds under the last resolution of your
Company. We htve on hand at present $193,500 of the $800,000 ordered to be
issued at your annual meeting in 1867.
SINKING FUND.

“ The company has paid during the year to the Trustee $35,000 in the five year
bonds, $30,000 in the ten year bonds, and $76,500 in the twenty year bonds.
“ On the 1st of January next the payments will be $45,000 in the five year bonds
and $30,000 in ten year bonds. Nothing will be required on the twenty year bonds,
as the payment made this year on the amount signed is more than will be required in
six years.
AID GIVEN TO THE COLUMBIA AND AUGU8TA RAILROAD COMPANY

“ Under authority given in a resolution at your last meeting, the c mpany pur­
chased from the Columbia and Augusta Railroad Company $100,000 of its bonds at
par, for which notes were given to said company in monthly ieetalments of $12,500
each, the first being due October 1st, 1868, and the last May 1 st, 1869. These obliga­
tions hive all been paid by our Treasurer as they became due.
“ The bonds bought from the Columbia and Augusta Railroad Company have been
disposed ot at an average discount of 15£ per cent ; $97,000 during this fiscal year
and $3,000 since the close of the year. This $16,000 discount will no doubt soon be
replaced by increased travel and freight over our line, caused by the completion of
^ he Columbia aud Augusta Railroad to Augusta.”
H a r t f o r d a n d N e w H a v e n R a i l r o a d . —The earnings o f this road for the years
ending August 31, 1868 and 1869, were as follows :

From passengers.
“ freight . . . .
“
exp resses..
“
m ails......... .
“ rents, e t c ..,

1868.
..$891,091 20
. 632,454 06
.. 114,709 50

1869.
$978,830
774,786
56,309
23,754

$1,697,334 39

$1,811,682 20

50
80
41
48

8,001 01

Expenses, viz. :
Repairs of road and bridges...............................
W ood , coal and o il................................................
Material and labor on engines and cars, and.
new cars and engines...................................... .
Transportation account and general expenses
Station repairs snd improvements ............... .
L o ;t and damaged goods, gratuities, e tc.........

$312,837 50
111,102 02

..

48,009 S3
3,472 79

243,616
347,886
55,227
7,677

91
94
82
36

Net earnings.........
Interest and taxes,

$1,024,935 08
. r 672,399 31
190,808 50

$1,078,378 55
733,303 65
185,084 24

Balance...............

$431,510 89

$548,219 41




1869]

389

RAILROAD ITEMS*

Compared with the rrevious year, the gross earnings of 1868-9 show an increase of
$114,347 81, with an increase in expenses o f $53,443 47— making the increase in net
earnings, $60,904 34. The balance remaining after the payment of interest and
taxes is $66,628 60 mors than that of the preceding year.
BALANCE 8HEKT, AUGUST 31.
Railway building, grounds......... . $3,407,2S4 76
Real estate, land and dw ellings..
132,317 43
Bo - ds purchased.............................
38,000 00
T« mlinson Bridge stock ................
8,888 67
Equipment engines and cars. . . .
254,000 00
W ood, s ock, and tools on hand.,
253,440 07
i ebts due the company, includ
ing accounts due from the N.
$5,126,789 70
Y. & N . H. R. R, Co. adjusted,
and funds i ahands|of agents. . .
454,697 48
Connecticut River B ridge.............
176,577 3 i
^tenmboat Orient...................... ..
196,083 81
N ew Wharf, New H aven...............
45,828 57
W indsor Locks and Suffield R.
R. C o ..............................................
1,344 18
Cash................................. - ................
158,327 37

Capital stoek ...............
$3,300,000 00
P on d s..................................................
927.0^0 00
Contingent fund...............................
427,875 65
Resf rvtfd fund - ................................
15<:.G00 00
Profit and lo s s .................. .
....
252,f'll 41
Dividends a n p a 'd ............................
7,097 00
Debts due by the C o ......................
62,805 64

j

$5,126,789 70

A t the meeting of stockholders it was resolved to accept the legislative permissiop
to issue $3,000,0j 0 new stock.
E ast T ennessee and G eo r g ia R a ilr o a d . — The report for the year ending June
30, 1869, shows the gross earnings and expenses as follows :
EARNINGS.

F rom
“
“
“
**
“

$271,587
10 725
208,949
511
13,670
10,550

freig h t.......................................... .
E xpress...................................... .
Passengers....................................
Transportation, United States
M ail...............................................
Other sou rces......... s..................

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

9T
04
16
89
02
48

$515,994 56

EXPENSES.

F or transportation....................................................................................................................
“ M otive p o w e r .....................................................................................................................
“ Maintenance o f w a y ........................................................................................................
44 Ma ntenance o i cars.........................................................................................................
44 General expen ses...............................................................................................................
44 Exiraordii.aiy exp en ses.......................
44 T a x e s ...................................................................................................................................
44 D epot b uildin gs.................................................................................................................
T o t a l........................................................................................................

$59,S13
82,839
90,693
53,846
15,919
30,250
5,534
3,379

74
13
35
55
02
05
51
77

$347,013 13

Which, deducted front the gross eajnings, a3 above, would leave $16S,981 43
net to pay interest to the State of Tennessee and on second mortgage bonds, the
interest on which amounts to $141,460 64. This, taken from the net earnings a3
above would leive a balance of $ 7,520 89 ; of this sum $14,181 91 has b en
retained during the y eir by the Government and credited uoon the bond, which
leaves on hand for the year’s operations $13,388 98. By comparing these figures
with those of the annual report of the year ending June 30, 1868, it will b i seen
that while the earnings of the present year exceed that of the previous year $3,080 05,
that the expenses have been reduced very greatly. Including extraordinary expen­
ses and all, it has taken 67£ per cent ol the gross earnings to operate the road.
The President remarks : “ Since the la9 t annual meeting of this company we have
succeeded in effecting a settlement with the State of Tennessee, ot our interest
and sinking fund account, which has been the cause of so much annoyance and
trouble since the w ar; because, from the annual reports of the Comptroller o f the
State of Tennessee, made to the Legislature, it was made to appear that we wer«
largely in arrears in our semi-annual payments of interest, which the effect to damage
our <redit, from the fact that outside oarties cid not know hut a receiver ra ght be
appointed to ta e charge of the road, for non-payment of interest due to the State.
This apparent difference of the accounts of the Comptroller and the company existed,
not from a want on the part of the officers of the State to do us damage, but from
honest convictions on their part that they had no right to credit the company W'th
certain payments that had been made aft r the 1st o f January, 1861. But, under




390

[N ovem ber

RAILROAD 1TB1S,

a recent decision of the Supreme Court of the Slate, all payments made to legally
autl orized parties upon all contracts were, le*al and valid, when they were received
without protest. And under t is derision of the court a full and comi lete settle­
ment was made; thi9 company having made the^e payments to the Bank of Ten­
nessee, the fiscal agent of the State, before the umoval of the bank from the Slate :
which settlement, as made, is in accordance with our books and is satisfactory to
the >tate and to the tfficers of this company.
‘•The inteiest due to the State of Tennessee, as well as on our second mortgage
bonds, was paid in full on the 1 st day of July last.”
ABSTRACT OF THE GENERAL CONDITION OF THE EAST TENNESSEE AND GEORGIA RAILROAD
COMPANY, ON THE SOTH DAY OF JUNE,

1869.

Capital S tock .................................... $1,290,06? 25
State Scrip.........................................
29,929 00
State Loan—O ld.............................. 1.037,000 00
“
N ew ...........................
430 277 50
Corrpany Bonds—Old....................
640,< 0 ' 00
“
“
-New ...............
136,400 00
Endorsed B onds...............................
1:5.00a O'
Cuut ons L mpuny B on d s,.............
7.030 00
“
Ef-d r s td ..........................
5,7u0 00
Bills Payable..............................
1,812 49
Unite States Incom e T a x ..............
2,434 40
Pay R olls...................
16,236 4 u
Due to A gents..................................
324 46
u
O tter R oads.......................
19,773 18
“
Individuals..........................
1,420 SI
Interest due 1st July on Com­
pany and Endorsed B onds.........
26,712 00

One Stat • B> n d ....... .......................
$1,000 00
One Enuorsed Rond........................
1,060 ( ft
r c u State i oupon s......................
120 00
Telegraph Sto< k ..........................
750 0 1
Express Company S to c o ............
5,0)0 (0
Pest Office Depnitmeut
...........
8,0'»2 97
U S T anspor ation Account .
9v>,134 U>
Southtru Express C o ....................
704 06
HoE ton ' alt & Piaster Co..............
1.184 Oft
D u e from A g e n t ...........................
2,953 09
“
Other R oad s................
31,843 87
Funds on hand to pay Int rest,
■nrcbr.se I- on, Rails, & c ...........
91,222 6 8
Funds in Augusta, Georgia, to
pay interest...................................
3,145 96
Ca h .................................................
23,261 68
Road and nxtures........................... 1,495 764 34

$3,759,157 52

$3,759,157 52

Messrs. Henry Clews & Co. advert se to pay both the April and October coupons
oa the Special Tax Bonds of the State of North Carolina, at their banking house 82
W all street.
J effersonville, M adison, and I ndianapolis R ailroad .—The report for the year
ending December 31, 1868, has just been issued, and co .tains the following —
The gross receipts of the road, during the year 1868, were $1,063,523 73.
As compared with the previous year, when the receipts amounted to $1,164 799 92,
this indicates a decrease of nearly nine per cent. This falling off was caused, in a
great measure, by the sharp competition for business that was waged*, during a large
po tion ot the year, beiweeD the four principal roads known as “ trunk lines’’— a con­
test which affected not only the revenues of those particular roads, but of all
others, including our own, doing business in connection with them.
By the terms o f a written contract between the City of Louisville and the Jeffer­
sonville Railroad Company, dated November 1 0 , 1863, the debt due by the railroad
company to the city, th n amounting to $ 2 0 0 ,0 0 0 , was to be discharged by the
deliverv, within five years, of a like amount of any of the outstandmg bonds of
said city. Pursuant to this agreement, the Jeffersonville Railroad Company delivered
$50,00'' o f eueh bonds in December, 1863, thereby reduemg the debt to $l50,00f\
Some time befjre the expiration of the five years mentioned in the contract, tins
company made a purchase of Louisvi le cry bonds to the ext»nt of $75,000, and
tendered them to the proper authorities of that city in further liquidation of the
drbt. This tender was unconditionally declined, under advice of the City Attorney,
who e’ d the cpin on that the contract between the eity an 1 the Jeft-rsonvi le Rail­
road Company was ill* gal and void in so far as it permitted any b nds to be received
except the particular issue upon wh ch the edebt was based. After this refusal, of
course no further steps in the case were taken by the company.
I f the decision of the Ci'y Attorney is to le regarded as conclusive, it is not
hel eved that our position has been affected unfavorably, since it will only remain f >r
this company to discharge her liability i the premises by redeeming $15*',000 of
the bonds originally issued by the ciiy of Louisville to the Jtffeis'*' vide Railroad
Company, when the same mature, v iz .: May 1, 1882, or earlier, should it be deemed
desirab'e and found practicable to do so— meanwhile anticipating events by rxchanging
for those bonds the securities we low bald, whenever the urn can be made oa fav*. rable terms.




1869]

391

RAILROAD ITEMS.

The late period at which this report goes to press permits a close esfimate to be
made of the company’s business for the first six months of ) 869. The receipts indi­
cate a steady and handsome increase over those for the corresponding months of
1868— sufficient to warrant the lief that the earnings of the present year will con­
siderably exceed eose of 1868, if indeed they do not equal those of 1867.
RECEIPTS AND EXPENSES.
EXPENSES.

e e c e ;p t s .

$74,958
IS F uel.........................................................
84,r.90
65 Passenger E xpenses.............................
116,989
90 1 reigbt Expe. ses .. ..........................
Rep?:
i
rs
o
f
K
oa
d...................................
185,844
(0
Other E xpenses....................................
235,986
T otal R eceipts............................. $1,063,523 73
Total Expenses ............................... $698,568
N et earnings......................................
364,955

F reight............................................... $f,5 -2, 5%
f'fiSit-Dgers........................................
434,546
E xp e ss..............................................
50,260
26,100
M ail............................................. , . . .

The passenger business shows a decrease of $23,587 69. Eliminating from the
passenger accounts for 1 8 6 7 and 1868, he military transportation performed during
the war, but only reported to us and entered on our books during those years, the
earnings will appear as follows :
Passenger Receipt- f r 1867.........................................................................$458,134 34
Deduct old Military Reports........................................................................
11.189 96
P ss-e g r Re eipts for 1868............................................................... . . . . $434,546 65
D edact o d Military R ep orts.......................................................................
1,27110

$446,944 38
433 275 55
$13,663 83

Decreisc,

The falling off in the regular travel is, therefore, only $13,668 83.
CONDENSED BALANCE SHEET.

$2,000,000
C ost o f Road and Equipm ent,........... . $6,027,342 Capital Sfo ck ..............................
Inve^m enU —
F u n d e d D ebt—
Jeffersonv l>e R. R . Bond3. ___...
40,000
J eters nvil e R. R. R onds............... 397,000
Indianopolis & M adi-on RR Bonds 612,000
Ind auonolis & Madison E R . Bonds 197,50 )
CMy ol Lou svibe Bonds......................
76,000 Jtffersonvill \ Madison & IndianapStock in L u svnle Bridge Company. 310,000
oJi R.U. Bonds............................... 1,961,000
Bonds o f the City o f Louisville___ 150,0*40
Lake Frle & Louisville Railroad c o m ­
pany
.................................................. 194,992 Temporary Bond a cco u n t...................
50,000
Outs;de R *al Estate.........................
80,^63 Su plus fund o f the Jeffersonville RR
Com a n y.............................................. 770,445
Bit s Receivab e ................. %.................
12,848
C ash........................................................
37 412 Profit & L oss.......................................... 662,193
40,442
Due by th" United States....................
9,165 Capita1 S o d Sinking F un d....... . .
D ae by Railroad C om panies.................
58,402 Kills Payab’e .......................................
359,833
Due to Rai road Com panies................ Iu5,868
Due by other A ssociations and by In­
dividuals. ............................................ 100,G80 Due to other Associations and to
Due b y A gents..............................
64,481
Individuals......... ................................ 176,146
Fuel and other Supplies on h in d .. . . .
85,245 j
$7,284,934
$7,284,934 \ *

K ansas P acific R ailw ay .— A correspondent of the New York T im es , under date
f f Sept. 26, writes in regard to this road as fi llows : While acknowledged to be at

least as deserving as the Union and the Central Pacific, the Kansas Pacific was not
as lucky as its compeers; for when the line had been built to a distance cf 393 miles,
Congress fuidenly shut down on any further subsidy. However, the road was last
year, by 5 rivate enterprise, pushed out some miles further, and it now abuts at
Sheridan, 406 miles west of the Missouri River. From Sheridan preparations are
under way to extend the line 225 miles to its natural terminus at Denver, whence it
will connect with the Union Pacific, by the “ Denver Pacific Railroad,” now actively
under construction and to be finished this year.
THE GOVERNMENT LAND GRANTS.

Government was liberal in it* grants o f public land to the builders of the Kansa8
Pacific R i a l ; and it is mainly to this d cumstance that the already-mentioned
astonishing progress of the State of Kansas is attributable. The concession, as is well
known, was of the alternate section within twenty miles of the road on each s:de.
This ga* e the C unpany above six million acres of land lying between Kansas City
and Denver. It is worthy of remark, in passing, that this provision on the part of the
Government (by which the railroad receives only the alternate or “ odd-numbered”
section) is regarded by the people h jre as an exceedingly wise one, for it completely
baulks the speculators who would, otherwise, absorb large tracts of laud to b oll fur




392

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 ,

a rise. A t the same time, parties buying lands in bulk from the railroad company
and settling them with actual settlers, are enabled to obtain, under the Homestead
law, the adjoining (“ even-numbered”) sections from Government.
ACTION OF THE RAIL W AY CORPORATION— LAND SALES.

To people the wilderness ihrough which the road runs was, of course, the first care
o f the corporation, and to this end judicious measures were taken. The Company
has been selling and is going to sell, at very low prices, faims to actual settlers.
In a general way, then, I mav state that the Kansas Pacific Road has this year
sold upwards'of 275,Of 0 acres. With unimportant exceptions these saLs have been
made to actual settlers, as, indeed, is sufficiently evinced by the fact that the pur­
chases have been from 80 to 820 acres each, and that the sales have b en made to
over 2,000 different individuals. The price h s varied from $2 to $6 per acre.
The gross receipts of the Kansas Pacific Company from these land sales have
reached the large aggregate of above $600,000, wnich would make the price per
acre something less than $3. These sales are increasing in a wonderful ratio, while
the perfect satisfaction which emigrants have found in the climate, soil and rich agri­
cultural rewards of Kansas forms a powerful attraction with those who hear from
their old neighbors such good account"'. Nor is this movement confined to our own
countrymen,; for, owing to the systematic organization o f the National Land Com­
pany, which works in concert with the Kansas Pacific Road, very large sa'es of land
have of late been made to English, German a d Swedish co o lists. Here, for instance,
are two or three illustrations. They are samples from among many.
ENGLISH AND GERMAN COLONIES.

1. A single English colony, a few weeks ago, bought 30,000 acres o f land here.
The tract is to be divided among no less than twelve hundred different families, the
families of well-to-do English farmers and artisans. I saw a sc. re of these families,
who have already arrived. They bring wi h them the means to stock their farms, and
build themselves houses, and they have already bought mowing machines, feed for
their cattle, <fcc. 2. A German colony has recently bought some 24,000 ^cres north
o f Junction City, (130 miles west of the Missouri,) upon which one hundred and
twenty families are to be established. 3. A Swedish colony, a year ago, bought
15,^00 acres south o f Salina. This colony has already sent out over two hundred
families.”

C O M M E RC IA L CHR ON IC LE AND R E V I E W
Monetary Affairs—Rates of Loans and Discounts—Bonds sold at N ew Y ork S tock Exchange
Board—Price o f Government Securities at N ew Y ork —Course o f Consols and American
Secu'ities at New Y ork —Opening, Highest, L ow est and Closing Prices at the New Y ork
Stock Exchange—General M ovement o f Coin and Bullion at N ew Y o r k —Course o f Gold
at New Y ork—Course of F ore gn Exchange at N ew York.

October has passed with an easier cundition o f the money market than was
expected.

Notwithstanding the abundance o f the crops, the amount of currency

sent from this centre for moving them has been much less than usual. This fact
arises partly, perhaps, from the reduced prices o f produce, but principally from the
circumstance of the banks not having bad sufficient small notes to meet the wants
o f the agricultural sections, where the lower denominations o f currency are
required for the purchase o f grain from the producers.

Tnis circumstance, while

it has helped to keep money comparatively abundant here, so that the rate on cal
loans has ranged, in the midst o f the crop season, at 4 @ 7 per cent, must be
expected to be followed by an unusually light return ef currency after the com­
pletion o f the crop movement.

Some considerable amounts o f money were sent,

early in the month, to N ew Orleans and Savannah ; but, later, the demand from
that qaarter ceased almost entirety.

The South would,

undoubtedly, have

drawn upon New Y ork more freely, had the banks been able to supply small




>

1869]

COMMERCIAL CHRONICLE AND

393

REVIEW.

cu rrency; to send notes in denominations o f over $ 5 0 was o f no avail, when
the money wa9 required largely by interior dealers for the purchase o f small
lots o f cotton. The cotton traders have, consequently, been compelled to effect
their operations a3 best they could, though, of course, with some inconvenience*
Throughout the month the deliveries o f new currency o f the lower denominations
from the Treasury have been quite nominal. The expectation o f an ample supply
o f small notes in November, and the suppo ition that money might then be sent
out more freely to the South and W est, have induced the banks to keep their
funds as much as possible on call, in preference to employing them on time.
Merchants have, consequently found it difficult to get their paper discounted
outside their own banks, and the d.fficulty in seliing notes has again increased
the pre sure from sellers, which, in turn, has produced distrust among buyers,
aod at the close of the month, the best paper was negotiated with difficulty at
1 0 @ 1 2 per cent.

Tnis stringency in the di count market has, perhaps, been

the most unsatisfactory feature o f the business o f the month.
W all street speculation sti 1 shows the effect of the severe blow dealt in the
culmination of the September gold operations. That denouement gave an
exposure o f the hollowness o f a certain class of speculative operations which
appears likely to hold the gambling propensities of the *•street” hereafter in
severe check. Operators appear disposed to conduct their speculations within a
lower range o f prices;

and in every branch o f business there is a vtry marked

caution
There is a certain undefined hesitancy about engaging in operations for
high prices, which appears to be inspired by a conviction, grounded upon the
general asp°ct of affairs, that we are on the eve o f a generally lower range of
values. The markets have been more or less effected by a disposition to discount
the probabili'y that Secretary Bontwell, iu his report on the assembling of
Congress, will make decidedly conservative recommendations, designed to facili­
tate the resumption o f specie payments ; and this feeling i3 encourage I by inti­
mations, coining from quarters which give thtm some weight, that the Supreme
Court will pronounce the Legal Tender A ct unconstitutional.

Notwiibstanding

these con-ervati7e tendencies, there has been a steady recovery in W all street
interests from the effects of the -November panic, confidence being more settled
and prices steadier.
A s an illustration of the contraction of speculative opera­
tions, it may be stated that the total recorded transactions in stocks for the
month have been only 417,91L shares, against 2,362/ 27 shares in the same
month of 18 6 8; while the sales ol G .v e in ie n t boi.ds at the Exchange have
been only $10,608,500, as against $23 479,150 in October o f las y.ar.
United Stales bonds have been decidedly w ejk, prices being, at the close o f
the month, about 2 percent below \ he opening figures; which, taking into account
the accumulation o f one month’s interest, is equal to a decline of fully 2£ per cent.
Considerable sales have be n made by investors and financial institutions with
a view to buying other securities, which, since the la'e panic, have ruled excep­
tionally low, while Government's had yie ded i omparatively little. Tue price
o f gold also has steadily declined; and, the quotations for bonds abroad having
but partly responded to the i educed premium, a fall in securities here was
required to equaliz; the home and foreign markets.




394

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 ler ,

.

The purchases o f bonds by the Government, during the month aggregated
$

10, 000, 000.
BONDS SO LD AT THE N. Y . STOCK EXCHANGE BO ARD .

Classes.
1868.
1869.
U .S . b o n d s ....................................................... $28,479,150 $10,60s,500
State & city b on d s.......................................... 11,145,1* 0
4,996,500
Company b on d s.......................................... .
2,031,400
1,214,500
Total—October.......................................... $36,655,G50
Since January 1 ............................................... 195,521,090

$16,819,500
273,234,609

Dec.
$12,870,650
6,148,600
816,900

In c.
.....
........
....
$77,713,519

$19,836,150
.............

The daily closing prices o f the principal Government securities at the N ew
Y o rk Stock Exchange Board in the month o f October, as represented by
the latest sale officially reported, are shown in the following statem ent:
PRICES OP GOVERNMENT SECURITIES AT NEW YO R K .

D ay of
6’ s, 18S l . - ^
m onth.
Coup. Keg.
319
1...............................
2 ...............................
119%
4 ...............................
5 ...............................
118%
6........................... ...................... 119*
7 ............................... ...................... 119*1
8 ...............................
9 ..............................
11.............................
119%
12............................... ...................... 119%
13 ............................. ...................... 119%
14............................... ...................... H9%
1 5 ...
....................
121
16...............................
18............................... ...................... 119% ii»%
19...............................
119%
20............................... ...................... 119% 119%
21............................... .................... 11 %
22...............................
120
23...............................
25............................. ...................... 120
26............................... ...................... 119% 119%
27........... ...................
119%
28.............................
119%
29...............................
3 0 ............................. ....................... 119%
F irs t......................... ......................
I lig h e s t ...................
L o w e s t ............... .
Last...........................

119%

1862.
120
119%
119%
119%
119%
120%
i* "%
120%
120’ "
120
120%
120%
120%
120%
120%
121
120%
1 26 %

119%
119%
119%
119%

6’ s, (5-20 yrs.)Coupon--------1864
18t 5, new
’67.
119% 119% 117% 118%
119% 119% 117% 117%
319% 117% 11 7 *
117% 117%
i i s x 117
r.d%
117% 117%
119% 119% 117% 116%
120
118% 118%
118
ii9 % 120
18%
118*
113
119% 117% 118"
119% 119% 118
118%
119% H9% 117% 117%
1'7% 117%
117% 111%
119%
119% ll8
116%
118*
119%
113
ii.9% 119% IIS
119% 117% 117%
119% 120
11734 117%
119% 317% 117%
119% 119% i n % 117%
116% 119% 117% 117%
K8% 119% m %
11 %
11*% lle% 110% l l l;%
118
117
315% 1\5%
117% 118% 116% 116%

120
119%
119
121
120
119%
118% 119% 117
119% 119% 117%

119%
120
117
119%

117%
118%
116%
U -%

H '%
118*
115%
116%

5 0,10-40.
’ 6 s.
C’ pn.
118% 109%
........
117% 10S%
117* 168%
108%
109
117% 109%
108%
i is
103*
118%
1(8%
117% 108%
10S*
113
117% 1-8%
108%
11716
117*

108%

117%
117%
117%
116%

io s *
108%
108%
108
108
107%

110%
118%
118%
110%
116%

109%
109*
;0(%
107%

COURSE OP CONSOL8 AND AM ERICAN SECURITIES AT LONDON.

Date.
Friday . . . . . ............. 1
Saturday ............... 2
M onday...................... 4
T u e s d a y .................. 5
W ed n esd a y................. 6
Thursday...................... 7
F r id a y ........................ 8
Saturd i y .................... 9
M on day.......................l l
Tuesday......................12
W ed n esd a y ............... 13
T h u r s d a y ...................14
F r id « y .........................15
Saturday.............. ,*..1 6
M onday ..................... 18
T u e s d a y .....................19
W ednesday.................20
Thursday ............... 21

Cons A m . securities.
for U. S. lll.C Erie
mon. 5-20s sh’ s. she.
93
93
9 i*

93%
93!*
93%
92%
92%
93%

91%

93%
93%
93; ;

9PA
93%
93%
93%

Date.

Cons Am . securities.
for U.S. lll.C. Erie
mon. 5 -20s sh’ s. sh’ s.

84% 94% 24% F rid a y ............................52
84% 94% 24% Saunday....................... .23
84% 94% 24 M on da y.......................2 5
T u e s d a y .......................28
84%
84* 94% 24% W ednesday................... 27
84% 94 *3% T hu rsday......................28
Bbiday .......................... 29|
81% y4 23
8 ’ % i 94
23% Saturday ....................
84%
23%
84% 94
23% L ow es t..
84% 91% 23% H ighest.
84% 94
23% R a n g e ...
82
94% 22
L a st........
91%
*1%
82 %
82% 91% 20% L o w ) <u,H.
95
82
20 % Hi- U d .
22 % R"g)iZ£.
81% 95
81% 95
21% Last

Tha s to c ; market has been characteriz d by a dull

Sl%
81 \
81%
81 %
82
82%
82*
82%

96
96
97
91%
98
98
9 s*
97*

21%
21%
21*
21%
21%
21%
21 %

81% 9 3*
84% 98
H
2%
4%
93% 82% 97%

20 %

93%
93%
98%
9 %
93%
93%
9
"93%

41%
24%
3%
21 %

92% 74% 92% 17%
94
81% 98* 28%
9%
6 % 11 %
i%
93% 82* 97% 21 %

c.utious movement’

though with a gradual improvement in prices, and a steady recovery o f con­
fidence.

The earnings o f the roads which report publicly their receipts have




1869]

COMMERCIAL OHROKICLE AND

305

REtIEtV.

not been such as to encourage a sanguine speculatioo ; which may partly account
for t ' e fact, that prices are far frrm having recovered the figures from wi ich
they declined in September, and rule still much below the average. The excep­
tionally low range o f prices appears to have encouraged a certain am uut o f
buying for investment, and, as a rule, stocks a^e now held in strong ha' ds.
Sptculation has been confined to encouraging temporary fluctuations o f 2 @ 3
per cent, rather than promoting a direct movement for either a rise or a fall.
STOCKS SOLD AT THE NEW YORK STOCK EXCHANGE BOARD.

Classes.
Bank shares
R ailroad “
Coal
“
M ining
“
Im prov’ n t “
Telegraph “
Steam ship “
E xp r’ ss& c“

1868.
.........
.........
.........
.........
.........
.........
....
.........

. . . 2,013,944

T otal—October.
S itce January 1 ..

. . 16,906,045

1869.
767
390,703
3,157
11,450
900
10,107
12,914
17,913
447,911
9,877,756

Increase.
D ec.
........
1,616
....
1,628,241
........
3 052
.
.
97,739
........
18,875
........
34,226
....
9->;h1»
38,448
........
....

1,914,116
7,028,2^9

The following table will show the opening, highest, lowest and closing prices
ot all the railway and miscellaneous securities sold at the N ew Y ork Stock
Exchange during the months o f September and October, 1869 :
Railroad Stocks—
A lton & Terre Haut..................
u
“
“
p rel.........
Bos on, IIiTtford & E rie.........
Chicago & A l t o n ......................
do
do p ref................
Chicago, Burl. & Q uincy.........
do
& Northwest’ n .........
do
do p ref...........
do
& R ock Island...........
Columb., Chic. & lnd. C...........
Clevc. & P ittsb u rg..................
do Col., Cin. & l n d .............
Del., Lack & W estern_______
Dubuque & S ioux c i t y ............
E rie..............................................
do p re fe rre d ...........................
H a rlem .......................................
Hannibal & St J o s e p h ...........
do
do p ref...........
Hudson R iv e r ................ ..........
Ilin ois Central ........................
J o.iet & Chica ro .......................
Lake Sho. & Mich. South.........
Mar. & C in c in .,ls t ................
“
“
2d
“ .........
Michigan C entral.....................
Milwaukee «&St. P aul.............
<t<>
do p r e f ._____
Morris & E ssex.........................
Hew J e r s e y .......................... .
New Haven & H a it fjr d .........
Hew Y ork Central.................. .
do
& N . Hav« n ....... .,
do
do scrip.........
N orw ich & W orcester............
Ohio & M ississip p i................
do
do
p ref.............
Panama.......................................
Pitts., h\ W . & Chi. guar........

/—----- —-September—
—Octol le r -----Open. High. Low. Clos. Open. High. L ow .
30
32
30
54
56
59
54
60
56
18
IS
17
145
146
146
154% 135
135%
144
135
135
156
147
136%
165
170
160
165
165
... 170
159%
63
.. . 84%
86%
70%
73%
69%
71%
95
79
85
86%
84%
... 94%
83%
106% 109% 110
.. . 115
115% 102
1(3%
24%
25
31
. . . 33%
26% 22
26%
82
93
95
104
112
86 %
73
74%
79
78
74%
73%
105% 106% 110
. . 112 V 113
111
199
104
108
110
1*6
... m
111
10 S
42
27
32
13%
29V
34%
58
7L
57%
54
. 70
B7%
59%
121
127
135
160
149%
129%
. . . 160
130
112
125
92
107
195%
97
97
1 1
111
523
308
154% 161% 174*6 150 V
186% 134
134
134
137
m
. . . 139
189%
132
92%
92%
02%
82%
85
. . . 101
76.V
10 fi%
94%
20
20
20
. . . so
20
20
18
8
8
...
8%
8'4
118
122
131
124
. . . 129
116
319
03 K
68
61
70
. . . 19%
80%
65%
81%
89 *£ 75
80
. S7%
83%
79%
87
80
8 8 % 86 %
8 84
87%
120
. . . 123% 1 3 # 120
117% 120
117%
1 0
1 U2
102
1073^ 97
232
232
232
173
206V 153
195
171%
1« 8 %
130
128
135
140
140
1*5
130
330
130
131
. . . 130
130
130
112

...




32%
231

...
...
Third Avenue...........................
T oled o, W ab. & W estern.......
do
do
do pi e t .........
Miscellaneous—
American Coal..........................
Central Coal.............................
Cumberland C o a l......... ..........
Pennsylvania C oal..................
Del. & Hud. C a n a l.................
A tlantic M a i l .........................

32%

97 V
105

.. .
..

83%
83

....

31%

. . . . 125%

112

24
240

120

29%

26%
250

27%
70
210

28%
70
240

103%
20%
80%

78
111

!0S%
30
54
U 3%

108%
109V
173
139
92%
91%
18
122

67%
80
88
120

193%
140
130%

26
r.O

26.
70

200

210

83%
93%

85%
07

83%
93

85%

0 i%

109
185
55%
80

197%
59 4
78

197%
67
30

197%
55
76%

197%
64
78

40
fO
23

40
60
23

40

40

27

122

122

220
120

29
250
124
....

91
105
185
185
50
83%
80
83
97 V

110

40
60
31%

112

Clos.
32
59
17%
145
347
159%
69%
81%

29%

21%

40
26%
220
120

96%

40
27%
230
122

...

396

[November ,

COMMERCIAL CHRONICLE AND REVIEW.

Pacific M a il........... .......................
Boston W ater P o w e r..................
Brunswick City Land..................
C a n ton ............................................ .............
M a rip osa ........................ .............
do
pref.............................. .............
Q uicksilver.................................... .............
W est. Union T elegraph.............. .............
Citizens G.i«...................................
Bankers & Brokers A ss..............
E xpress—
American M . U n ion .................... ...........
A d a m s ............................................
United States................. .............
Merchant’ s U n io n ..... .................. .............
W ells, Fargo & Co........................

56
12 %

15%
37*

80X
16
....
58
10 %
19
15%
31%
150

59%
13

63%
13

50

54

8
12 %
12

14

63%
13
9%
53
9
16%

12

12

35
160

9

36
150

69%
14%
«%
54
9%
18
15
37

36%
104

35
n%

38
57%
63
n%
19

30
49%
50
11

16

80*
51%
50

56%
13
9%

50
8

8

16

16%
14%
36%

12

.36
104

105

59%
14
9%
62%

105

60

F0
52%
49%

35
57
58%

26%

17

20 %

31
62%
50%

36
58%

18

11

17

The gold market has presented a remarkable freedom from speculative movem n•s. The wholesome lessons o f the panic o f September 24th appears to have
made a deep impression oa the gold operators; so much so, that it has been
found impossible, thus far, to establish, in connection with the Gold Exchange,
any arrangemen s for clearing the transactions of dealers, those facilities having
in the past very materially contributed to the activity o f speculation and to irres­
ponsible parties taking large risks. The general tendency o f the market has
been downward; the aecl ne having been due to the anticipation o f the supply
coming from the November interest payments, to the sale o f 811,000,000 of
gold by the Treasury, and to a growing feeling that the improving condition o f
the public finances and the abundance o f the exportab e crops warrant the
expectation o f a lower premium. 'The exports o f specie for the month have been
quiie nominal.
CO
Id
60

a

F riday............................ 1 139 130 130% 130%
129% 130% 129%
Saturday...................... 2
M onday......................... 4 130 1S«% 130 128%
Tuesday................................ 5123%
128% 130% 130
W ednesday................. 6 130 130 131 131
Thursday.......................1131)4 131)4 132 131%
F r i d a y ...............
8 1-31% 131)% 131% 130*
Saturday................................ 9laOi*
130% 130% 13U$v
M onday........................11 130% 1:30% 180% 130%
T u esd a y...................... 12 13 )4 130)4 130)4 130)4
W ednesday............... 13 130)4 130% 130% 130%
Thursday.....................14 130)4 130 180% 130
130 130% 130
Friday............. ............ IS 180
S aturday.....................16 1 0 130 130% 130%
Monday........................ 18 130% 130 130% 130
T u e s d a y ...... ..............11) 130 130 180% 130*
W ednesday................. 20 130 130 130% 130
Thursday.....................21 130)4 130% 131% 130*
F r day.......................... 21 131 130% 131% 131*

Date.

Openi’g

D ate.

Closing.

Lowest.

COURSE OP BOLD A T NEW YO R K .

c

sh

H
131% 131

Saturday............
M on da y...............
Tuesday...............
W ednesday.........
Thursday............
F iid a y .................
Saturday..............

131*
131%
130%
130%
129)4
128%
i28%

Oct., 1869...........
“
1868........
“
.1867_____
“
1866.........
“
1865.........
“
1864 .......
“
1863.........
“
1862.........

130
140%
143%
116
144%
192
149%
121 %

S’ ce J a n l, 1869...

134% 128 % j 162% 129

130%

131%
130% 130%
129% 1130%
118% 129%
128%
'
128%
123% 129%
130%

130%
130%
129%
128%
128%
129

128%
133%
140%
145%

132 129
140% [133%
145%1140%
164%jl46%
144% 149
146%
189 221% 1123%
140% 156% 145%
122 133% 129%

Foreign exchange has been comparatively steady. Importers have been free
buyers of b ills but the supply has been well sustained by ti e liberal exports of'
cotton and grain.
COURSE OP FOREIGN EXCHAN GE (6 0 D A Y S) AT NEW YO RK .

L ondon.
Paris,
cents for
centim es
Days.
54 pence.
for dollar.
1 „ ............................. _ 1 0 U 4 ( a : 0 3
522% (t52U
2 .................................108 @108% 522% @520

@ 109% bis%@5h %
.............................. 109 @109%
7
.............109 @109%
ij................................ 109 @109%
9 ................................ 108.%@109)4
11
...............108%@109%
12
...............10S%@:09%

518%@517%
518%@517%
518% @517%
622% @520
522% @520
522% @520

13

518% @ 517%

6

.................. 1 0 9 % @ 1 0 9 %




Amsterdam. Bremen.
cents for
cents for
florin.
rix daler.
40 @40% 78 @78%
40 @40% 78 @73%
Irregular.
40%@iU% 78%@78%
40%@40% 78% @78%
40%@40% 78%@18%
40% @40% 78%©78%
40%@40% 78%©78%
40% @40% 78)4 @78%
40%@4U% 78%@78%
40%@40% 78%@78%

H amburg,
B erlin
cents for
cen ts f o f
M. banco.
thaler
35%@35% 70%@7U%
35% @35% 70% @ 70%
35%@35%
35% @35%
35%@35%
35% @35%
35%@35%
35%@35%
35% @35%
35%@35%

70%@70%
70% @70%
70%@70%
70%@T0%
70% @70%
70%@70%
70%@70%
70%@70%

18C9]

397

JOURNAL OF BANKING, CURRENCY, AND FINANCE.

14
......... .............109 @109% 518%©517%
15
........................... 109 @109% 51S%@517%
16
........................... 109 @1<>9% 518 ^ @517%
18
........................... 109 @109% 518%©517%
...
109%@109% 516%@516%
19
20
........................... 109%© . . . . 516*©515
21 ............................. 109%©109% 516%@515
22
........................... 109%@109% 516%©5 5
........................... 109 ©109% 516%©515
23
25 ........................... 109%©10,)% 5D,%@515
26
........................... 109%©109% 517%@516%
27
........................... lo9 ©109% 5l6%©516%
28
........................... 108%@108% 5LC%@517%
29
........................... 108%© 08% 518%©517%
.............................108%©108% 518%©517%
30

40%©40% 78%@73%
40%@40% 78%@7S%
40%@40% 78%@78%
40%@40% 78*-a@78%
40% © 40‘< 7S%@78%
40%@40% 78%@79
40%©40% 78%@79
40%©40% 7S%@79
40%©40% 78%©79
40%©h)% 78%©T9
4<>%©40% 78%©79
40%@10% 78%©79
40%@40% 78%@78%
40%©40% 78%©78%
40%©40% 78%©7 8%

Oct., ................. 1869.107%©109% 522%©515
Oct., 1868 ............... 108%©110% 520 ©513%

40 ©40% 78 ©79
40%©41% 79 @79%

35%@35%
35%@35%
85% @85%
3o% @35%
35%@35%
36 © ;0%
36 ©36%
36 ©36%
36 ©36%
36 ©36%
36 ©36%
36 ©36%
35%©35%
35%©35%
35%©35%

70%©70%
70%@70%
70%@70%
70%@70%
70%@70%
7 l% @ 7 l%
71%@71%
71%@71%
71%@71%
71%@71%
71%©71%
71%@71%
71%@71%
71%©71%
71%©71%

35%©36% 70%©71%
35%©36% 71%©72%

JO U R N A L OF B A N K I N G , C U R R E N C Y , A N D FIN A N C E .
Returns o f the N ew Y ork, Philadelphia and Boston Banks.

Below we give the returns o f the Banks o f the three cities since Jan. 1 :
NEW Y O RK CITY BAN K RETU RN S.

Date.
L oin s.
February 6 . . 206,541,732
February 13.. 264,380,407
February 2 >.. 263,428,06 <
February 27.. 261.371,897
March 6 ......... 262,089,883
March 13..........261,M59,695
iwarch 20........ 263,098,302
March 27........ 263,909,539
A pril 3 ......... 261,933,675
A pril 1 0......... 257 480,227
April 17 ....... 255,184,882
April 24........ 257,458,074
May 1............. 260,435,160
May 8 ............. 268,486,372
May 15............. 269,498,897
May 22............. 270,275,552
May 29............. 274,935,461
June 5 ........... 275,919,609
June 12........... 271,983,735
June 19........... 265,341,906
June 26........... 260,431,732
J.ily 3............... 258,368,471
July 10............. 255,424’942
July 17............. 257,008,289
July 24............. 259,641,889
July 31............... 260,530,225
Angust 7......... 264,879,357
August 14....... 266,505,- 65
August 21........262,T il,133
August 28. . . . 261,012.109
September 4 . 262,549,8 9
September 11. 26S,864,?33
S eptem be; 18 266,496,024
September 25. 263,441,828
October 2 . . . . 255,239,649
October 9 . . 250,749,974
October 1 6 ... 248,537,984
Oct b e r 2 3 .... 249.3.5,073
O ctob er3 0 .... 250,946,833

Specie.
Circul turn.
27.939.404
34.246.436
35,854,331
34,263,451
23,351,391
34,247,321
20,832,603
34,247 981
19,486,634
34,275,885
34,690,445
17,358,671
15,213,306
34,741 310
12,073,722
34,777,814
10.7 ^7,839
31,816,916
34,609,360
8,791,543
7,811,779
34,436.76)
34,060,5 1
8,850,360
33,972,059
9,267,6 5
16,081,489
83,986,160
15,374,769
33.977,793
15.429.404
33,927,386
17,871,230
33,920,845
19,051,133
33,982,995
19,053,580
34,144,790
19,025,444
34,198,829
20,2-7,140
34,214,785
34,217,973
23,520,267
30,266,912
34,277,945
31,055,450
31.178.437
30,079,424
34,110,7 »8
27.8 1,933
3U68,617
26,003,925
3-1,947.985
24,154,499
83,992,257
21,594,510
34,028,104
34,999,742
19,469,103
17,4)1,722
33,960,035
14 942,066
33,964,196
14,538,109
33,972,759
13,96S,431
33,996,081
15,902,849
31,169.4: 9
34,178,925
21,513,526
84,217,114
20,399,070
19,399,701
34,201,435
21,926.016
34,136,249

Deposits
196,602,899
192,977,860
187,612 546
185,216,175
182,604,437
1^2,392,458
183,504,999
180,113,910
175,325,789
1^1,495,580
172,203,494
177,340,080
183,948,565
19 5,8 *3,: 37
199,392,449
199,414,869
203,055 600
199,124,042
193,886,905
186,214,110
481,774,695
179,929,467
183,197,239
183,431,7 1
193.622 26)
196,416,443
200,22u,003
198,952,711
192,024 546
188,754,539
191,10:,0S6
188,823,324
185,390.130
130,230,793
183.124,508
179,214,675
178,642,936
175.798,919
180,828,832

L. Tend’ a. A g . tfear’gs
53.424.133
670 329,470
52,334,952
690,754,499
50.997.197
701,991,041
50,835,054
529.816.020
49,145,369
727,148,131
49,639,621
629,177,56ft
50,774,874
730,710,00o
50,555,103
797,987,483
48,496,359
837,^23,69rt
48,644,732
810,059,455
51,001, >88
772,365,294
53,677,898
752,905,76ft
56,495,722
763,768,349
55,103,573
901,174,577
56,501,356
860,720.880
57,838,298
788.747.852
57,810,373
7S1,646,49i
51,289.429
766,28l,02g
50,859,258
856,006,645
49,612,488
836.224.021
48,163,920
76 -,170,743
46,737,263
>46,763,300
48,71)2,723
676,540,291
51,859,706
711,328,141
54,271,862
5 8,455,097
56,101,627
614,455,4^7
56,056, S34
614 875,637
54,730,089
6S2,821,627
53.070.831
566,650,531
52.792.831
600,801,345
5 ,829,783
546,889,278
51,4S7,867
791,753 341
51.259.197
662 419,784
50,025,981
989,274,472
54,209,088
792,893,772
52,017,588
628.380.852
53,229,504
531,390,262
52,037,604
5S1,510.207
52.177.831
540,450,642

PHILADELPHIA BANK RETURNS.

Date.
F eb u a r y l....................
February 8 ....................
F ebrm ry 15........... . . .
February 22..................
March 1 .........................
M a rc1 8 ........................
March 15.......................
March 22 ......................
March 29........................
April 5 ........................
A pril 12..........................
A pril 19 ..........................




Loans.
52,632 813
53,059,716
52,929,391
52,416,146
52,251,351
52,233,000
51,911,522
51,328,419
50,597,100
50,499,866
50,770,193
51,478,371

Specie. Legal T enders.
3*2,782
14,296,570
337,051
13,785,595
304,681
13,573,043
2-31,307
13,208,607
256,933
13,010,508
297,887
13 258,201
277,517
13.028,207
225.097
12,765,759
210,644
13,021.315
1S9,003
12,169,221
184,246
12,643,357
167,818
12,941,733

Deposits.
29,677,943
40,080 399
38,711,575
37,990,986
37,735,205
38,293,956
37,570,582
36,960,009
36,863,344
35,375,854
36.029.133
37,031,747

Circulation.
10,599,351
10,586,552
30,582,226
10.458.546
10.458.546
10,458,953
30.459,081
10,461,400
10,472,420
10,622,896
10,628,166
10,629,425

393

JOURNAL OF BANKING, CURRENCY-, AND FIN AN CE.

Date.
>pril 2 6 ........... .............
May 8 .............
May 1(1..............
May 17.............
May 24............
M ,y 3 t ..............
Jane 7 ...........
June 14......... ...........
June 2 1 ...........
June 28...........
July 5.............
July 12.............
...........
July 1 9 ....
J a y 20............ .............
August 2 ....... ...........
August 9 .......
A ugust 10....... _______
August 28....... .............
August 8 0 ----- ............
September 6 . .............
Septem ber 13. ................
September 29 . ................
September 27. ................
October 4 ----- ................
O c t o e r 11. . . .
October I S . . . . ................

Loan°.
51,294,222

53.124,800

63,128,593
52,465,100
51.953,8 3
51,932,901
52,309.020
52,083,652
51,9?1,372
51 597,258
51,703,372
52,130,402
52,105,010
51,057,364

Specie.
164,201
201,753
270,525
2^0,107
174,115
185,257
109,310
152,451
148.795
180,084
303,621
485,293
456,739
390,377
384,869
325,210
200,089
244.256
245,515
247.358
149,169
174,855
139,058
177,303
265,111
284,568

.

L. Tend’s.
13,610.063
14,2*0,371
14,623,803
34,696,363
15,087,00$
15,484,947
15,378,388
15,178,332
14,972,123
14,667,327
14,031,449
13,415,493
12 944,886
13,070, ISO
13,618,911
13,530,001
13,047,635
12,977,027
13,018,213
13,013,705
12.900,054
13,348,598
13,448,889
13,335 858
12,8*0,357
12,380,187

\ N o w fiib e r,

Deposits.
37,487,285
38 971,281
39.478,803
40,092,742
41,031,410
42,:-47 319
42,390,330
42,005,077
42,066,901
41,517,710
41,321,537
40,140,497
39.834,862
36,160,044
39.717,ISO
39,506,405
39,141,196
39,020,605
3',833,414
39,212,588
38,945,913
39,109.526
39,345,378
33,4S5,284
37,102,575
37,02 i,0S2

Circulation.
10 621,407
10 617,315
10,617,934
10,614,612
10,618 248
10,618,561
10,610,890
10,621,933
10,617.864
10,622,704
10.618,845
10,618,27i
la ,618,700
10,6 4,973
10,610,233
10 ,,608,38 L
10,610,S61
10,608,352
10,608,824
10,611,674
V ,612,041
10,610,053
10,609,182
10,598,911
10,607,345
10,599,390

D ep osits.
33,504,099
34,392,377
31,257,071
35,302,203
30,735,742
37,457,8S7
88,708,304
39,347,881
38 403,624
38,491,446
87,408,719
36,243,995
34,331,417
31,851,745
31 520,417
35.211,103
37,308,087
36,117,973
34,933,731
35.229,149
37,041 045
37,362,7 1
37,0^6,497
36,<117,665
36,8 0,894
34.891,791
34.446,803
34.877.0U

C irculation.
24,071,716
25,338,782
25,351.814
25,319.751
25,330.060
25,324,532
25,309,603
25,200,383
25,175,233
25,292,157
55,247,667
25,313,661
25,304,858
25,335,701
25,325,085
25,251*4
25,514,706
25,279,282
25,244.004
25,200,083
25,202,271
25,227.279
25,277,734
25,307,121
25.321,404
25,38S,H96
2 ,313,494
25,212,033

BOSTON B A N K RETURNS.

(Capital Jan. 1, 1866, $41,900,000.)
L oans.
S pecie.
Legal Tenders.
Date.
11,248,884
862,276
April 5 .............
750,160
11,391,6,9
.fipril 1 2 ..............
639,460
11,429,995
April 19 .............
617,435
12,361.827
April 2 6 ...........
12,352,113
708,963
May 3 ................
1,587,749
12,513,472
May 10.............
12,8 88 j 527
1,184,886
May 17................
13,191,542
934,560
May 24.............
772.397
13,690,857
May 31.............
13,454 661
640,582
June 7 .............
601,742
12,64S,615
Juno 1 4 .........
12,087,305
959,796
J une 21 ......... . .
11,784,802
1,103,662
June 2S..............
3,140,676
9,595,668
July 12................
3,255,151
9,511,879
July 19................
3,024.595
9,393,461
nly 26. .........
2.365,920
10,719,569
August 9 ......... .............. 103,804,554
10 438 5t»5
2,154,616
A ugust 10 .........
11,2 0,6i4
2,517,372
August 23 .........
1,871,713
11,908,730
August 30 ......... .............. 103,053,007
11,792,5’ 9
1,715.563
Septem ber O. .............. 103 904,5 5
12,^71,211
3,2 8,474
104.437.227
Septe t.ber 13
915,681
12,747,857
Septem ber 20. ........... 104,478.949
518,579
12,950,087
Septem ber *7. .............. 101,375,531
652.197
12,-67,01)4
October 4 . ........... 105,289,208
.............. 101,946,179
1,191,712
11,413.893
October 71
1.151,254
11.376,043
Oo ober IS . . . .............. 104.551,831
1,090,130
11,319,786
October 25 ___ .............. 108,662,620

WEBSTER'S SYSTEM OF SPELLING AND DEFINING,
The standard authority in all fchoolg in the United States in spelling and
pronunciation 0 the latest revised edition of V V eL steiD ictionary. A t a very
early day in the establishment o f onr common schools W ebster’s Spellers became
the 'almost universal first lesson book o f the young mind, and th s still holds Us
pi ice in the schools o f the country, thus inevitably paving the way for the contin­
uation of the system of spelling and defining as uiven by Webster’s series o f
Dictionaries, and we are therefore not astonished to be told that the sale of these
is n e ,rlv ten times as great as that of all other dictionaries combined. In order to
render the unabridged edition o f this work a trustworthy companion of the scholar
and student the Messrs Merriam, the publisher'-, haA; spared no expense in procar­
ing the services of the most able linguists and philologists of the present time, to
completely revise the edition now offered to the public. It contains some two
millions more ems o f printed matter than any other dictionary published in this
country, and we belive it the most complete w oik of reference ever produced.




jURANCE

MARIN

O F

C:

SUN MUTI'

DURANCE COMPANY,
JR TE D

N 0

Cash apit
Surplus I
Tota’
The
ed in t

Fie v

Fre
Or

II E

M A Y 22, 18 4 1.

W A L L

S T R E E T ,

$500,000 00
$S3I 167 n
$1,031,187 17

>869 ■

N ew Y ork January 23,186
mf*nt o f the A i r s o f th's C m p in y on the 31st o f December, 1868, is pubiish. the requi ement-» I the 10th Sect o . o f the Act o f its inc >rpor t o n :
i n d R s k s , • ecr'8 1,1 ‘567..........
$222,591 -'4
durin the year endi..g December 31, 1868:
..................................................................................
$624,680 87
...................................
14,707 97
--------------- 639,388 84

j i n m s ......................................................................................
#811,980 38
.searnedd ringthe vea rl 6 *.................................................................................................$636,57 4 7J
mi u s u r n j-^ ft r ..................................................
$'6,815 63
icnrrt d dm ng t e j e r Oiwluding estimates for all d saste s rep orted ':
A* R isk s.........
...........................................................................$314,294 99
• d Risks ....................................................................................................
2,118 43
---------------- 316.413 42
;n«e ,R insurances, Taxes, Commissio b. Abatements in 1 eu o f Scrip, c . . . 10',72^ 30
$493 957 44
ne S 'E S o f h* C mpa y on the 31s*;Dec., 18»8, were s follow s.
J . S. 5 0 bonds............................................................................
......................
U. S. 10 40 bowels...................................................................................

$340,400 00
. 1 4, hi 0 00

$505,000 00
11 :52 00
2*, 0 0 00
. 62,29-#605,044
Premium Notes and Bills R eceivab'e no' matur d .............................................................................. 154,9'.4
'ubseriptio N o t e s .................................................................................................................................... 111.166
Lash Prem urns in course o f coll ct on and accrued interest on Loans and S to c k s ................
.168
s und"y Salvage, R in urance and other c «i-ns due he Company, stimated a t ...
.......
1 8.*13
City B >nds and other S o c k ............................... ....................................... .
B^n 8>«n1 Mo t jag s
............................. ...................................................
<as . on d p it, and l ans on dema d, secured by Bonds and Stocks..

To ala s » r maining with the Company on

e 31st D ecem oe , 1868

62
91
35
25
04

$1,031 167 17

No Fire Risk have been taken b t b e C o np inv during the year, except in conn ition with v arine
R sks.
Ia v ew o f the fore oii g result the B ard o Tru-t*‘(*s have this day.
Resolv d, Titat a ■R F 1TD IV 1D FN
F F U k 1’ h.RCEN , in Cash, be paid to he tockhnlders on
demand, t ee of Government T ax, in add: ion to the 'nrere t dividend ot 'e v e n i e- Cent, a cl in
Ju y and J nuary.
s , hat a SC IP D 'V ID ND O P T E N TY P ^ P C E N T ,freeof Cover me t Tax, b declared on
the net a r -. d uieminms entitle to participa ion for the year 1868, for v»h ih eitifica es m a y b e is sued on and after the 1st da o f April nex .
By order o f the Boa d,
ISAAC H. T A L K E R , S - retiry.

Moses H Grlnnell,
John P. Paulison,
John E. Devlin,
Louis <>eBebian,
William H. Macy,
Fred. G. Foster
Richardson T. Wilson,
John H. Macy,
Henry Former Hitch,
Ellas Ponvert,
Simon De Visser,
Wm. R. Preston,

TRUSTEES:
Isaac A. Crane,
A. Yznaga del Valle,
John S Wright,
Wm. Von Sachs,
Philip I’ ater,
Wm. i oel,
Thomas J Slaughter,
Joseph Gaillard, Jr.,
Alex. M. Lawrence,
Isaac Bell.
Billot C. Cowdin,

Percy R. Pyne,
Samuel M. Fox,
Joseph V. Onativia,
Edw ird S. Jaffray,
William O thout,
Ernest Caylus.
Fiederick Chauncey,
George L. Kingsland.
James F. Penniman,
Fred -ric Sturg. s,
Anson G. P. Stokes.
MOSBS H. GR'NNEI.L, Pr. sid**nt.
JOHN P PAGLISO n. Vice-Prt^ deut

ISAAC H. WALKER, Secretary




ATLANTIC
u t t t a l

i

n

s m

t m

(Org a n ize d

q
in

i)

u rn p

n

g

,
o

1842.)

fi

O ffice , 5 1 "W all S t., c o r . o f "W illiam , N e \ r Y o r k
: s s 9

P

/ J « s mow A ssets, a ccu m u la ted f r o m its business, o f t vef> t h ir te e n

a nd o n e -lia lf M illion D o lla rs.
(]
f\
f\
'j
fj
Q
/,

V I Z .:
United States and State o f New York Stock, City, Bank and ot.,er
S t o c k s , ..................................................'■■
$7,587,435
Loans secured By Stocks and otherwise,
2 214.100
Premium Notes and Bills Eeceivable, Real Estate, Bond and Mortgages
’
and other securities,
’ ,453,795
Cash in Bank,
____ ]05,545

H

2

1

$13,601

i

Insures against MAMOTE and IXLA5J)
Navigation Misks,

2

/d/vc

g la red ,

ttttOlC JUOfit o

cin e/ id

annual^

d iv id er/

ij

te lm in a te d d u lin y t/ve y c a l

^

ii,iu ed >

braving interest

f tfie / ocm fvan y leveled t(

/

((■/von

t/u

t/ve filem iu m d

a n d f o l (u/vic/v certifica ted a le

u n it/ lec/ eetn ec/ .

fi
J. D. JONES,
CHARLES DENNIS,
W. H. H. MOORE,
HENRY CO IT,
WM. C. PICKERSGILL,
LEWIS CURTIS,
CHARLES H. RUSSELL,
LOWELL HOLBROOK,
R. WARREN WESTON,
ROYAL PHELPS,
CALEB BARSTOW,
A. P. PILLOT,
WILLIAM E. DODGE,

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

FREDERICK CHAUNCEY,
R. L. TAYLOR,
GEORGE S. STEPHENSON,
W ILLIAM H. WEBB,
PAUL SPOFFORD.
SHEPPARD GANDY,
-FRANCIS SKIDDY,
CHARLESPv BURDETT,
ROBT. C. FEROUSS0N.
SAMUEL G. WARD,
WILLIAM E. BUNKER,
SAMUEL L. MITCH ILL,
JAMES G. DE FOREST.

JOHN D. JONES, President.
CH ARLES DENNIS, Vice-President
W . II. H. MOORE 2 nd Vice-Pres.
J. D. H EW LETT, 3 d Vice-Pres. M
H. CHAPM AN, Secretary




\i
$j
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