Full text of The Merchants' Magazine and Commercial Review : October 1862, Vol. XLVII, No. IV

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T HE

MERCHANTS’ MAGAZINE
AND

COMMERCIAL REVIEW,
O C T O B E R ,

GENERAL

AVERAGES

1862.

CONSOLIDATION.

T he civilization o f R om e and the civilization o f India have each d e­
veloped themaelves in a manner so totally distinct from the other, that
the idea o f their com m on origin can hardly be conceived.
And yet
recent philological researches into the formation o f their two lan­
guages clearly prove that the inhabitants o f each sprung from a com ­
mon stock.
So clear is this proof, that it is asserted that if all his­
torical records were destroyed and mere specimens o f each language
preserved these alone would serve to show their relationship.
The
Sanscrit is now acknowledged to be the parent o f all European languages,
living or dead, and this language bears the same relationship to the
modern Hindoostanee that the Latin tongue does to the modern
Italian.
The early codification o f the Rom an customs o f law is held by a dis­
tinguished modern author* to be the principal cause of the different
development o f the two countries in civilization.
A ll ancient societies
obtained written laws sooner or later, but the period at which their codes
were made, exercised the greatest influence over their future progress.
In R om e the plebian or popular element successfully assailed the oli­
garchical m onopoly, and a code was obtained early in the history o f the
commonwealth. A t a period when usage was rational and healthy, that
is to say, when the customs o f the people had been so lately formed,
that the circumstances o f their origin and the reasons for their adoption
were familiar to every one, the celebrated code known as the Twelve
Fables was framed.
This deliberate methodizing, and adoption into a
* H

en ry

VOL. XLYII,---- NO. IV .




S umner M a in e .
20

“

Ancient law.”

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General Averages Consolidation.

[October,

body o f written law, o f ideas and principles o f justice, that were before
this time only matters o f traditionary custom arrested forever that law
o f development by which usage that is reasonable generates usage which
is unreasonable. It at once placed a barrier against the encroachments
o f the aristocracy upon the liberties o f the people, and prevented their
reasonable customs from degenerating into superstitious abuses.
On the other hand, in India and in the East generally, aristocracies
tended to become religious rather than civil or political, and gained
therefore rather than lost in power.
Codes were obtained relatively
much later than in W estern societies.
The customs o f the people had
becom e corrupt, for the reason that they were obeyed by multitudes
w ho were ignorant o f the true grounds o f their expediency, and who
were, therefore, left to invent superstitious reasons for their permanence.
Prohibitions and ordinances originally confined to a single description o f
acts were made to apply to all acts o f the same class.
After one kind
o f food had been prohibited for sanitary reasons, the prohibition was ex­
tended to all food resembling it, although the resemblance originally
depended upon analogies the most fanciful.
So again a wise provision
for insuring general cleanliness dictated in time long routines o f cere­
monial ablution ; and that division into classes which at a particular
crisis o f the social history was, perhaps, necessary for the maintenance o f
the national existence, degenerated into the most disastrous and blight­
in g o f all human institutions— caste. The opportunity thus afforded to
the priests o f increasing and consolidating their influence was too great
to be resisted; and to this end they rather encouraged than suppressed
the superstitions o f the people.
And when codes were finally obtained,
they were rather collections o f such rules as the priests deemed proper
to be observed, than compilations o f reasonable usages.
Thus we find that the early introduction o f a rational code preserved
the liberties o f the Roman people, and laid the foundation o f that splen­
did system o f jurisprudence, which has so largely affected the civilization
o f the world. But when a written law came to the H indoos their liber­
ties were already gone, and their customs had degenerated into super­
stitions, and they became, and have since continued to be, the most op­
pressed and the most corrupt o f nations pretending to any degree o f
civilization.
It would appear from these illustrations, that a code has the same in­
fluence in fixing the customs o f a Dation that a literature has upon the
natural development o f a language.
It is asserted that those barbarous
nations whose range o f ideas is most limited, have still so surprising a
word-m aking power, that tribes from a com m on stock, separated for a
few years, soon lose the power o f communicating with each other at all.
N ot that their changed circumstances give birth to new ideas which
they em body in new words, but that they invent new words to express
the same ideas. But the moment the language begins to be written this
process is forever arrested; and as a consequence the period in its growth
at which its literature first appears is o f the greatest im portance. A
brave and free people will naturally possess a very different set o f ideas
to those which will prevail am ong an enslaved race, and must necessarily
speak a superior language. I f that language is arrested by a literature
while it is in this condition, it may remain a monument o f a noble race
long after the people who gave it birth have disappeared from the family




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General Averages Consolidation.

307

o f nations. A nd in the same way many ancient codes, that o f R om e pre­
eminent am ong the rest, remain to prove the almost forgotten greatness
o f the people who originally framed them.
The mercantile com m unity is, in respect to the rules which govern its
transactions, somewhat similarly situated to ancient societies before their
laws were codified. The law-merchant which regulates them is little more
than a body o f customs and traditions.
It is true that these customs are
many o f them as old as com m erce itself; and are embodied in many
ancient local codes that are surpassed by no modern enactments for wis­
dom and integrity. It is true also that these customs are not confined
to one nation or people, but embrace the usages o f the com m ercial
world. And as these codes have no authority but their own intrinsic
merit, where their application would be clearly unjust they need never
be applied. And as customs that have been handed down for ages un­
impaired, and have stood the test o f thousands o f decisions must almost
necessarily be correct, it would be only reasonable to suppose that the
decisions o f the law-merchant were on the whole m ore equitable and
just than those o f the civil law o f any country.
And this is admitted
to be the case. A t the same time in the daily transactions o f life cases
constantly arise in which the law, correct as it may be on the whole, is
found to be rather cumbersome in its application.
So vast a range o f
precedents can never be compassed by any but a professional man, and
even then only by one o f great industry and learning. H ence it follows
that most o f those whose pursuits require such knowledge are unable to
obtain it. For all practical purposes a code o f exact rules on these mat­
ters would be vastly more convenient; but to obtain such a code the
consent o f all trading nations must first be obtained ; and then, too, the
powers o f human language would be severely taxed, to make the rules
so general as to cover every case, and so clear as to be understood by
every one.
W ithout such a code there must be uncertainty on many points,
caused not so much by want o f precedents as by ignorance o f their ex­
istence. For instance, a merchant whose vessel is in distress in a foreign
port may have to submit to charges neither founded in principle, nor
sanctioned by general practice, and yet be unable to resist them from
the want o f any distinct law to appeal to. And again, although the broad
principles o f the law-merchant may be admitted by all nations, yet in the
practice founded upon them many discrepancies notoriously exist. It is in
the application o f a great truth to a particular set o f circumstances that
individual idiosyncracies appear. This o f course must frequently cause con­
fusion and embarrassment and even affords an opportunity for fraud. And
finally, there are certain principles just in themselves which should not be
pushed too far, and here custom must decide where the limit should be
placed. As an example, the loss o f interest on money during detention at
a port of distress is not allowed as General Average, although undoubtedly
the consequence o f a General Average A ct. W hether these difficulties
could be removed by an universal code remains to be seen. One thing is
certain, with a code uniformity would be obtained, and this alone would
perhaps make amends for the occasional injustice arising from a neces­
sarily strict observance o f the letter o f the law.
And as in the case o f ancient societies the circumstances under which it
is obtained will forever stamp it for good or evil, and it may be too late




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General Averages Consolidation.

[October,

in the history o f commerce to attempt such a measure, or the proper time
for its adoption may not yet have arrived.
Commerce has already done much towards breaking down ancient hos­
tilities. In olden times there were examples o f the splendor and wealth
derivable from it even before Tyre.
But in those davs the same word
signified “ stranger” and “ enemy.” And even in Greece, merchants were
frequently pirates when the opportunity offered. In Rom e it held no high
position, but in the middle ages the greatest o f the Medici was so proud
o f his success as a merchant that he refused to add any other title to his
name. And only a few years ago, we might well have believed that the
commerce o f the Atlantic alone would forever have sufficed to preserve
peace between the great nations lying on its borders. And even in these
troubled days when the nation, convulsed with civil war, sees one half its
people longing for and the other half dreading an armed European inter­
vention in its domestic troubles— there comes a message o f peace from the
other side o f the Atlantic, and merchants here are invited to join their
brethren on the other side in an attempt at a universal codification o f that
large and importaut branch o f mercantile law known as General Aver­
ageFrance already has a code o f laws on this subject; they are a part o f the
Code Napoleon, but were derived almost entire from the Ordonnance of
Louis X IV ., which in its turn was principally compiled from the Roman
and Rhodian laws. England, up to and during the time o f Lord Mansfield,
did not differ much in her General Average customs from other European
countries. Since that time, however, England has introduced innovations,
some o f them under the sanction o f the courts o f law, but more o f them
as Customs o f L loyd’ s.
In this country the common law o f England was adopted by us at the
time o f our Revolution, and with it the General Average law o f which it
formed a part. It was adopted by us in its best days, however, before the
innovations alluded to had commenced. And it has been since devoloped
by a free use o f continental learning, and at the present day differs widely
from that o f England, but not from that o f the rest o f Europe.
In the month o f May, 1860, a circular was issued by several commercial
bodies o f Great Britain to the commercial bodies o f other countries, repre­
senting the great inconvenience o f the present system o f adjusting General
Average, and inviting them to send representatives to Glasgow in Septem­
ber, 1860, to “ consider the best means o f attaining to some degree o f uni­
formity o f system.” The circular describes the system of General Average
as one which pre-eminently requires that the same principles should be
acknowledged among the chief maritime nations. But so far from this be­
ing the case, however, some o f the most important rules not only vary in
the same country but in the same port.
Uncertainty is always an e v il;
and in regard to General Average the evil is peculiarly felt. The ship
may be owned in one country, insured in another, her cargo owned and
insured in several, and the port o f disti nation where the General Average
is made up, may be in a country which has different rules to any o f the
others. W h a t is considered to be a Particular Average on ship in one
port, is held to be General Average in another, so that the owner o f an out­
ward bound ship may find himself unable to recover his loss either from
his underwriters at home, or as General Average abroad ; or, on the other
hand, he may be in a position to indemnify himself fraudulently twice over.




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General Averages Consolidation.

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“ A very large proportion o f the must important questions rests in Eng­
land nominally upon the decision o f that extremely vague authority ‘ the
custom at L loyd ' s ,’ but really depends upon the idiosyncrasy o f the par­
ticular adjuster who may be intrusted with the papers.” The greatest evil
of all which result from the present uncertainty o f the law, is the oppor­
tunity which it affords o f introducing charges of the most outrageous de­
scription, which do not even go into the pocket o f the shipowner, but
which he feels himself helpless to resist from the want of a law to appeal
to.
The result o f this circular was the assembling o f delegates from various
commercial bodies in the following September to discuss the evils com­
plained of, and to suggest a remedy. The suggestion o f Judge M a r v i n ,
who represented the Chamber o f Commerce and Board o f Underwriters
of this city, that definite and acceptable rules could not be framed by the
Congress, but that they should refer these questions to some o f the ablest
jurists in the country who might take into their counsel some o f the best
adjusters, was adopted. He further proposed that these gentlemen might
in the course o f the year draw up the doctrine of General Average in the
form of a bill to Parliament, if they pleased, and what cases were to be in­
cluded in General Average. This bill was then to be printed and sent to
all the commercial cities in the world for revision and correction. By that
means a great mass o f experience, suggestion and thought would be col­
lected. The bill would then be returned to the central committee in Lon­
don with the suggestions. A final bill would then be drawn up and sub­
mitted to the British Parliament, and if it became a law, the Judge did
not think “ there would be any great difficulty encountered in the Con­
gress o f the United States ; and if it were adopted by the two greatest
commercial nations, France and other countries would be soon likely to fol­
low, and in the course o f four or five years a much greater uniformity
might be obtained.”
This outline o f a bill has already arrived in this city, and is now
being considered by our commercial bodies. It is called “ General Aver­
ages Consolidation,” and if the plan which has been so successfully carried
out hitherto, should be faithfully pursued, a very valuable General Average
Code must be the result. A t the same time, the greatest care and delibera­
tion are necessary to make the bill a faithful exponent o f admitted princi­
ples; and to avoid injustice and error in their application to particular cir­
cumstances. The suggestion o f J udge M a r v in as to the best method to
be adopted in the original bill, might, with great propriety, be carried out
here for its correction. A committee “ o f the ablest jurists of this country,
who might take into their counsel some o f the best adjusters,” should be
appointed by the Chamber o f Commerce and the Board o f Underwriters,
to thoroughly revise and amend this instrument, and to return it to its
framers with all the suggestions that their united learning and experience
might dictate. I f care is thus taken, both in this country and in ail others
to which the bill may be sent, to collect the suggestions o f the ablest minds
upon its merits, it will bring back to its framers such a mass o f “ experi­
ence, suggestion, and thought,” that they can hardly fail to draw up a sec­
ond bill so just in its principles, and so wise in their application to all prac­
tical details, as will readily secure its universal adoption.
An opportunity is thus afforded, such as may never occur again, o f com­
paring the points o f difference in the practice o f each nation, and of sifting




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General Averages Consolidation.

[October,

the arguments upon which they are founded. Those which stand the test
o f sound reason and common sense, will be likely to secure universal adop­
tion ; those, on the contrary, which owe their origin to a superstitious re­
verence for old and perhaps hardly understood precedents, or which have
been purposely twisted by interested parties to further their own ends, will
naturally be set aside. In fact, whatever modifications are now due to local
causes, or what may be better defined as individual caprice, will disappear,
while those founded on the broad principles o f just;ce alone, will remain.
As the practice o f marine insurance is now almost universal, General
Average contributions cease to be a matter between the parties concerned
alone, but have become one in which the underwriters o f both parties are
most usually interested. Hence it is, that a powerful corporation like
L loyd’ s will oftener have an interest in making a General Average a Parti­
cular Average than the reverse. For if the whole burden falls upon one
o f the interests concerned, they may be insurers or they may n o t; but if it
is to be equally diffused among all the parties to the adventure, they are
more likely to have insured some, if not all o f them. And again, by the
custom o f insurance a particular average or a partial loss must amount to
a certain sum, or no contribution is due, whereas, a general average must
always be settled by the insurers no matter how small its amount. And
then, too, many expenses which would ordinarily be borne by the owner,
become charges on all the interests during the performance o f General
Average Acts. The effect o f the “ customs at L loyd’ s is very manifest in
the English practice, and the arguments by which their defenders attempt
to support them, are quite curious specimens o f logic. One o f the most
distinguished o f these writers, Mr. W m . B enecke, has such a charming style,
and displays such various and extensive learning, that he has taken a high
rank among authors upon average. A t the same time, some o f the argu­
ments which he uses in defence o f these unjust practices, introduced by
L loyd’ s, are so transparent, that the only wonder is, whether he himself
was ever convinced by them.
For instance, a vessel may be disabled by a storm at se a ; the damage thus
occasioned is a partial loss, and must be borne by the owner or his under­
writers; but the disabled ship cannot prosecute her voyage with safety, and
the captain decides to make for the nearest port. Before he takes this course
the ship and her cargo are in danger o f perishing ; he is not bound to
make this deviation for the sake o f earning freight, since that contract ex­
pressly excepts “ the perils o f the sea.” If he proceeds, and the ship and
cargo are lost, the owner o f the goods has no claim on the owner o f the
ship for indemnity. He puts into port then for the benefit o f all the interests
at stake, and this act being admitted to be a general average act, it follows
that its legitimate consequences are all proper subjects o f general average
contribution. In this country they are so considered, and every necessary
expense that results from the performance o f it, is apportioned upon all the
interests benefitted. But by the usage at L loyd’ s, the wages and provi­
sions o f the crew during the deviation and detention fall upon the owner;
the port charges inwards, the notary’s and adjusters fees are apportioned
upon the several interests; the expense o f unloading the cargo is contribu­
ted for, but the storage and other expenses when the cargo is actually out
o f the ship are a special charge upon that interest; and the reloading and
clearance fees fall upon the freight. In defence of which, Mr. B enecke
says: “ A s soon as the object o f putting the vessel and cargo in safety is




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General Averages Consolidation.

311

accomplished, the cause for contribution ceases; for whatever is subse­
quently done, is not a sacrifice for the benefit o f the whole, or for averting
an imminent danger, but is the mere necessary consequence o f a particular
average. If owing to the injury sustained by the vessel, the cargo must
be landed to prevent its being more damaged, the charges o f unloading,
housing, insuring against fire, reloading, &c., very properly fall upon the
proprietor o f the cargo. For the landing is a necessary consequence o f the
misfortune that had occurred, and cannot be said to be resorted to for the
purpose o f enabling the vessel to proceed upon her voyage when repaired,
since the goods would have been landed also if the voyage could not have
been prosecuted. The vessel, therefore, ought not to be charged with a
part of those expenses which were not intentionally incurred for her benefit,
but which only incidentally became useful to her. Even if the unloading
were resorted to merely for the purpose o f repairing the vessel, still, it be­
ing the natural consequence o f a particular average, and taking place after
the ship and cargo are in safety, it cannot be a general average.” If argu­
ments such as these are all that can be urged in favor o f the contradictory
“ customs ” which prevail at L loyd’ s, when a port o f distress is sought to
repair accidental damage, it is not surprising that the framers o f the new
bill should have overturned them altogether, and substituted provisions more
in accordance with admitted principles. Section 52 o f the bill provides
that, “ Crews’ wages, and provisions, and all expenses consequent upon bear­
ing up for a port o f refuge shall, (from the date when the ship deviates from
her voyage for the purpose o f such bearing up,) be deemed to be General
Average within the meaning o f this act.” Section 57 provides that, “ The
expense o f warehouse rent at a port o f refuge, on cargo necessarily dis­
charged there, and the expense o f reshipping it, except as to such portion
as shall have been discharged in consequence o f an accident at such port,
and in all cases the outward port charges, properly incurred by the master
at such port, shall, in case the ship shall carry on the cargo from such port,
or when the original contract o f affreightment shall not have been deter­
mined, be deemed to be a general average losses within the meaning o f this
act.”

In a word, then, it would appear that the general average practice o f the
world, although not codified, and dependent upon “ usage,” still depends on
usage so enlightened, that its decisions are, upon the whole, more just than
those of the civil law o f any nation. It appears also, that its leading prin­
ciples may now be considered as settled by the common consent of the com­
mercial world. At the same time, it must be admitted, that however clear
the principles, there will necessarily be discrepancies in their application, or
in their limitation; and also, that these discrepancies may be purposely
created, whenever the interest of a large body of men prompts them to do
so, as is shown by the “ innovations ” which the “ custom of L loyd’ s ” has
been allowed to make in English law. The present General Average bill,
if adopted, would make no material change in our law, but would save our
merchants from the inconvenience of the conflicting and frequently unjust
“ usage,” that now obtains in England, and to which they are obliged to sub­
mit, whenever their ships visit ports where British law prevails.
An universally accepted code would remove many inconveniences exist­
ing at present, and, properly drawn up, would be a great blessing to com­
merce. It needs no argument to prove, that if the law depends solely upon
“ customs,” an orderly and systematic arrangement o f those customs is pre­




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General Averages Consolidation.

[October,

ferable to their present diffused condition. A t the same time, the practical
difficulties o f the task must be considered. In the first place, the legisla­
tive bodies before whom it would be brought, both in this country and in
England, are not composed o f men who have made these matters a special
study, and who would, therefore, from the complication o f the subject, be
entirely incompetent to pass upon its merits. I f they attempted to change
the most insignificant provisions o f the code, they would probably alter
it for the worst. A nd the chances are, that it would come out from the
ordeal o f a revision by the British Parliament, or the American Congress,
so mutilated as to be comparatively worthless. And then, too, it is not
within the power o f human language to provide for every emergency, and
so to frame the provisions o f a code that it will cover every case, but a code
once adopted as a part o f the law o f the land, must be literally applied,
although that application may be, in some instances, contrary to reason and
common sense.
The Social Science Association has already collected and printed the
“ practice o f the various commercial nations ” on this subject; they have
also caused a bill to be drawn up in the shape o f a code, and sent it abroad
for criticism. W h en it returns corrected to them, they will draft a second
bill embracing all the amendments. W h y should not this second bill be then
referred to the various chambers o f commerce for authoritative adoption, as
the recognized “ custom o f merchants ?” If this is done, it will necessarily
be referred to by the courts in their decisions, and finally become a part of
the law o f every land. According to its merits alone, in this case, will it
live or die. The code o f the island of Rhodes, though framed a thousand
years before the Christian era, was quoted by the Emperor A ntonine,*
and is in our day constantly referred to. The laws o f Oleron, (a small is­
land on the coast o f France,) compiled about the year 1,200, and the laws
o f W isbey, (a port in an island in the Baltic,) o f equally ancient date, are still
unforgotten. This General Averages Consolidation may perhaps be referred
to in future ages as a testimony o f the wisdom and the learning of its com ­
pilers, and may even cause the older codes to sink into oblivion, or it may
be quietly buried in the archives o f the society which gave it birth. It is
a worthy effort, and one which well deserves encouragem ent; and if it only
succeeds in publishing to the commercial world, an orderly and systematic
digest o f the existing customs on the subject, it will have accomplished
m uch; but if it secures in any way, their authoritative acknowledgement
by commercial bodies, or by legislation, it will have rendered a very im ­
portant and lasting service to the whole commercial world.

* In the title de Lege Rhodia de Jactu, to which we have already referred, Dig.
tr. 14, title 2, sec. 9, occurs what we should call a case stated to the Emperor
A ntonine , calling for a decision. The answer is, “ I indeed am lord of the world, but
the law is (the lord) of the sea, whatever the Rhodian law prescribes in the premises
let that be adjudged.”— Parson’s on Maritime Law.




1862.]

313

Pacific Railroad.

PACIFIC

RAILROAD.

C O N V E N T I O N OF C O R P O R A T O R S .
SPEE CH

O F S. D E W IT T B L O O D G O O D , E S Q ., O F N E W

YORK.

[W e understand that an official report of the proceedings of this Convention,
recently held at Chicago, will soon be published. Meantime we are indebted to
Mr. S. D eW itt Bloodgood for a copy of his very able speech on the second
day of the Session, in regard to the publication of which the following debate
occurred. It was delivered in support of the admirable resolutions reported to
the Convention by S. B. R uggles, Esq., Chairman of the Committee entrusted
with their preparation :
L. A . T homas, o f Iowa, moved that the speech o f S. D eW itt B lood­
It contains in it a great amount
o f information, which many people west o f the Mississippi would be. very
desirous o f having. The information, of a statistical nature, contained in
that speech, is extraordinary.
Mr. C ass— I rise with great reluctance, because the subject under dis­
cussion appears to be o f a personal nature. I am willing to admit that
I scarcely ever heard a docum ent so scholarly, so elaborately, and
so skillfully com piled. I listened to every word with the profoundest
attention. But, whilst I admire it, I would be very unwilling to give my
sanction to all the positions advanced in it. I f there be any way o f pub­
lishing that speech without com m itting the Convention to some o f the
points contained in it— if we can get the information containecLin it with­
out com m itting ourselves to its details— I shall be very glad to sanction
it.
Mr. T homas— In reference to that matter, I may say there are in it
some suggestions which I should wish to examine very carefully before I
give my full assent to them. Mr. B loodgood, I believe, intends revising
it himself, and it is for the purpose o f getting this information, which I
believe to be so valuable, into the hands o f the people at large that I
make m y proposition.
Mr. B loodgood— W h a t I said before this Convention yesterday was
the result o f some reflection. I did not expect that the opinions to which
I gave utterance would be fully indorsed by every man, for each one o f
us has his own opinions, and they must go for what they are worth.
The President inquired whether the gentleman who made the motion
wished the speech to be published at the expense o f the Convention, and
reminded him that no finance committee had as yet been appointed.
good be published in pamphlet form.

Mr. T iiomas replied that this was not his intention.
Mr. J ohn C orby, o f Missouri— It appears to me that it would be bet­
ter to appoint a committee to co-operate with Mr. B loodgood in revising
his speech, and preparing it for publication for the benefit o f the Con­
vention.




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Pacific Railroad.

[October,

Further remarks were made by members of the Convention to the same effect ; ■
but we omit them, the above being sufficient to show the manner in which the
speech was received, and the importance of its early publication. We are sure
our subscribers will congratulate us on being able to give them this able and
scholarly document in advance of its appearance elsewhere.— Editor Merchants’
Magazine.]
M r. P resident and G entlemen.— Our national character was never
better illustrated than on the present occasion. In the midst o f a cause­
less and desperate rebellion against the happiest form o f government
which humanity was ever inspired to establish, while in the midst o f an
enormous expenditure o f treasure, and the effusion o f our most precious
blood to preserve this Union, undeterred and undismayed we assemble
here to day under the authority o f the National Legislature to organize
an enterprise o f the vastest proportions and with the most momentous re­
sults. A railway across a continent, a connection between the two great
oceans o f the globe, and a change in the traffic o f Europe, Asia, and
A m erica— these are the objects which present themselves for our con­
sideration. After years o f discussion, numerous surveys, and a general
conviction that the proposed work is within our power and our resources,
we have been selected to give form and tono and character to the pro­
ject, and we here thoughtfully, I trust, assume a responsibility which is
not for a day, but all time. It is with this feeling I approach the sub­
ject, happy to be among the number o f those to whom so great and
honorable a trust is confided by the people o f the United States. This
is a meeting o f corporators for the time being, intrusted with important
duties, so important that on our present action the success o f the enter­
prise may essentially depend.
The shape we give it will be likely to be preserved. I f we appeal in
the right way to the intelligence and patriotism o f the people, we may
hope for their support and an adoption o f our recommendations ; but, on
the other l*and, if any other than a comprehensive and liberal spirit pre­
vail, if local interests and personal wishes are to have a preference, we
may expect to see an early application for the repeal o f the act o f Con­
gress, an intention to which utterance has already been given, even in my
hearing.
W h at, then, is our plan ? H o w shall it best be put forth to the pub­
lic ? H ow can we assure capitalists o f its remunerative character ?— how
convince the people, who have loaned us the national credit, that their
confidence is not misplaced, and that their favor is not bestowed on an un­
worthy and ill-considered scheme ? A nd how shall we accomplish what
we now inaugurate, in the shortest time, in the most substantial manner,
and at the least expense ? A ll this we shall have to point out, if we expect
to obtain, outside o f the government, any large financial support. It is
for us to show this in the first place, for, if the necessary subscriptions are
not obtained, sufficient to com m ence and proceed with the work, the
generous aid o f the national credit will not he fully available. In this, as
in almost all other great efforts, it is the first step which costs.
The letter o f our duty is plain enough. It is set forth clearly in the
act o f incorporation. The first question is, where shall we open books o f
subscription, with how much notice, and to whom shall this duty be en­
trusted ? Shall these books be opened without preliminary maps, tables,




1862.]

Pacific Railroad.

315

explanations, and arguments, or shall these be carefully prepared and
given adequate circulation at the start? Shall the number o f Directors
hereafter to be chosen be thirteen in number, or be enlarged? Shall a
railway o f almost two thousand miles extent be left to the management o f
a few or many persons? May they be taken from one State, or distributed
equitably am ong all the States furnishing the capital, or in proportion to
the subscriptions? These questions considered in time, and decided in
time, will have an important bearing on the immediate success o f the
project,— immediate I say, for even if we should falter in our present
movements, the Pacific Railroad will survive all errors, all mistakes; it
is a work certainly and finally to be accomplished.
From the words o f the act, I have inferred that the details o f the work
will fall into the hands o f the direction the moment it is duly elected, and
that, therefore, we, as the original corporators, need not embarrass our­
selves with ulterior matters o f engineering or finance. W e are not even
to put the first spade in the ground, but must see that the money is ready
for the laborers when the first turf is raised.
W h en this project was first entertained, after the conquest and acqui­
sition o f California, it was looked upon by many reflecting people as one
not only visionary, but not within the range o f possibility. The poetry
o f the idea is, however, found reducible to prosaic fact. W e have no
longer before us a castle in the air to dream about, but a real, substantial,
actual edifice to construct.
This Pacific Railroad is an absolute, exacting necessity. W e have a
sister State on the shores o f a great ocean, which we early sought to reach,
to which the star Empire was leading us, and at which we now have
actually arrived, unequalled for its mineral wealth, its admirable climate,
and its exhaustless fertility, an empire in itself, an ally, a friend in need, the
most civilized and prosperous country on the whole Pacific Ocean, not
a colony o f tawny natives, mixed up with European masters, held by
force, and robbed by them at pleasure, but a republican State, recognis­
ing the laws o f Christianity and civilization, already mature and pros­
perous.
Sprung originally, like another Minerva, from the brain o f the
American Jove, California could, after a few years, build this road alone.
A ccordin g to the government survey she possesses four hundred thousand
square miles o f territory, which would give eight States as large as New
Y ork, fifty as large as N ew Jersey, and fifty-seven as large as Massachu­
setts. W ith a population equal per square mile to that o f New Jersey,
California would support eighteen millions o f inhabitants; if equal to
New Y ork, twenty m illions; and if equal to Massachusetts, forty millions.
That she will be a staunch supporter o f the work is very certain. H er
representatives in Congress in fact secured the passage o f the act. H er
sons are here with us to-day to see if we comprehend the vastness o f the
enterprise. To leave such an ally and friend to the hazardous connection
o f long and dangerous voyages, to the border intrusion o f two large
foreign dependencies, Russian and British Am erica, would be but a poor
return for their loyalty to the Union, and a poor exchange for the valu­
able products she now sends to us through her golden gates, and which
enable us to meet the unfriendly drain o f the foreign bankers, not only
with impunity but indifference. In the spirit o f enlightened selfishness,
then, if in no other, we must perceive, that the construction o f this rail­
road is an absolute necessity and an unexampled advantage to ourselves.




316

Pacific Railroad.

[October,

W e have not only a large and profitable trade with California, but with
countries far beyond, which has been conducted, though spiritedly, perseveringly, and profitably for many years, yet at an unnecessary cost.
The road to India, to China, to Japan has been a long and circuitous o n e ;
we have had to pay toll to the turnpike keepers, the bankers of Liverpool
and London, when we wished to pass to the East for our teas, our silks,
or our drugs. Freights, insurances, commissions, and premiums on bills
o f exchange have piled up their charges upon our imports, on something
o f the principle o f K epler’ s famous law, increasing “ as the square o f
the distance.”
Let us have this road and our invoices will be shorn o f most o f these
items, so formidable in any European account rendered, as many o f us no
doubt have happened to know. All we save in these will be a reduction
in price to the consumer here at home. The day is near at hand, I trust,
that when we drink our cup o f tea, we shall do so without having lost a
single drop to any inimical banker.
The extent and importance o f our East India trade have been grow ing
familiar to the American comprehension. But before we examine into
this, let us see what we are to gain by it for ourselves. In Congress, and
while the Pacific bill was under consideration, Mr.-M cD ougall, the
Senator, and Mr. P helps, a Member of Congress from California, most
ably presented this subject before it, being comprehensive and masterly
in their arguments in favor o f its passage. Mr. Mc D ougall stated the
fact, that the United States Government paid yearly for transportation to
California, to be saved by the use o f this road, no less a sum annually
than $7,357,000. This was no guess work, it was taken from the Report
o f the Chairman o f the House Committee. It is about 100 per cent more
than the interest guarantied by the government on the completion o f the
road. This difference, with the five per cent reserved to the government
by the bill, will pay the whole principal and interest o f the bonds years
before they mature.— [See Evening Post, July 6th, on Mr. M cD ougall’ s
speech.]
But let us see for a moment, and realise if possible, the results o f
Mr. McD ougall’ s calculations, which I learn from him, were the result
o f months o f careful consideration, and which are below rather than
above the mark.
From his speech in the United States Senate on the bill, we make the
follow ing ex tracts:
startling calculations as to the pacific railroad .

The present cost and loss o f the transportation o f men and merchan­
dise between Boston, New Y ork, Philadelphia, and Baltimore on the one
side, and San Francisco on the other, from the best com piled statistics,
may be stated thus :
Passenger transits both ways, including overland transits,
100,000, averaging $150 per c a p it a ...................................... $15,000,000
Time o f passenger transits, average forty days, and counting
them as dead labor while in transit and otherwise, their
average labor worth two dollars per diem ............................
8,000,000
Freights both ways around the Horn, 215,000 tons, at an
average o f twenty dollars per ton............................................
4,300,000




1862.]

Pacific Railroad.

Value o f freights both ways, other than gold and silver,
$110,000,000. On this, by the reason o f twice passing
through the tropics, there is, from leakage, sweating, and
other causes, a loss o f not less than seven per cent not
covered by insurance....................................................................
Insurance, and gross losses uninsured ; that is, where parties
are their own insurers, three per cent.....................................
Interest on the capital which may be considered dead while
135 days in transitu— say four per cent................................
Government transportation, as stated.......................................
Isthmus transportation (excluding passengers) and insurance
on the sam e....................................................................................
Freights to Nevada Territory, em ploying 2,000 teams 200
days each year, at a cost o f twenty-five dollars per team.
Passenger transits to and from Nevada......................................
Passengers and freights to and from Denver and Salt Lake,
estimated without data a t...........................................................

317

7,700,000
3,300,000
4,400,000
7,357,000
3,250,000
10,000,000
2,500,000
10,000,000
$75,807,000

The cost o f the same business and service by a continuous line o f rail­
road from San Francisco to the point o f delivery east, and the reverse,
may be stated thus :
Two hundred and fifteen thousand tons, at $30.......................
Interest on $110,000,000 for ten days, one-third per c e n t . .
One hundred thousand passenger transits at $50 each ..........
Ten days each passenger in transit, loss $2 per d iem ............
One hundred tons gold and silver, $300 per to n .....................
Isthmus m erchandise........................................................................
Nevada, Utah, and Colorado passengers and freights, esti­
m ated................................................................................................
Damage and insurance....................................................................
Government freights and transportation, computed as equal
to interest........................................................................................

$6,450,000
366,666
5,000,000
2,000,000
30,000
1,250,000
2,500,000
1,600,000
3,773,800
$22,970,466

But there is another important view o f this subject. Mr. P helps, the
Member of Congress from California, in his speech on the same subject,
exhibits a statement equally astounding as to the condition of our East
India trade, and the losses it is subjected to on its present basis. He
remarks:
“ Our imports from China in the year 1857 amounted to $8,356,932,
and our domestic exports to China, $3,019,000, leaving a balance against
us of $5,337,032. In 1858 our imports were $10,570,536, and our ex­
ports $2,467,645, leaving a balance against irs of $8,102,891. In 1860
our imports from the same source were $13,566,641, and our exports
$7,170,784, leaving a balance against us of $6,395,802. These figures
exclude the exports o f gold and silver. It will be observed that our trade
with this nation is rapidly increasing, our importshaving risen from 1857
to 1860 about sixty per cent.
*
*
*
*
*
*
*




318

Pacific Railroad.

[October,

“ It is reasonable to suppose that under any circumstances the balance
o f the trade will not at any time be less than in 1860 ; say, 16,400,000.
This amount o f indebtedness is mostly paid through English houses, at a
cost to us o f about twenty per cent. A t this rate, continues Mr. P helps,
the cost o f remittance is 11,280,000 annually, and becomes a part o f the
price to the American consumers o f tea.
“ I f we can, by the construction o f this road, turn this treasure ship­
ment to new channels, and it can be made from San Francisco in twentythree days, saving from the present specie route at least sixty days in time,
reducing the cost o f shipment, including exchange, freight, interest, and
insurance, to not exceeding four per cent, it would cause a net annual sav­
ing to our people o f $984,000. T o the sum thus saved should be added
the cost o f the same amount o f treasure shipped from San Francisco to
N ew Y ork, which cannot be done at less rates than three and one-half
per cent, and would amount to $259,000.
“ I may very properly add, that the entire balance o f trade against us

on what is known in mercantile parlance as the East India trade, will not
fall short of $18,000,000 per annum. On this sum the saving in exchange
would amount to $3,600,000. But these are but a small portion o f the
benefits this country would derive from the diverting of the specie route
of the world into American channels of trade.”
Fifty millions of treasure which annually find their way to the East by
the old commercial routes, would necessarily change their direction and
come westward over this road. Nor was Mr. P helps out of the way when
he said this. Its constructioe is even now as much dreaded by our foreign
enemies, as the restoration of the Union itself. Not long since I cut from
a leading London journal a paragraph founded upon this very supposi­
tion, though first suggested by speculations in a California print. It reads
thus, and is so pertinent that I may be excused for asking attention to
its details:
“ The California papers state that an enormous sum of money would
be saved by English, French, and American merchants in premiums on
gold if a steam communication existed between San Francisco and China.
California sends to the eastern States o f America, England, and France,
eight millions sterling of gold yearly to pay for goods which it wants.
San Francisco is twenty-five days from China, the Eastern States of America
are seventy days, and England and France are sixty days from China. A
New York house, we will say, imports every year £ 1 00 ,0 00 worth of
goods from China, and exports goods to the same amount to California.
That State pays three per cent on the £ 1 00 ,0 00 worth of gold sent to
the New York house, and the latter pays six per cent to send it to China.
Now if steam packet communication existed between San Francisco and
China, there would be no necessity to incur the expense o f thus sending
specie three parts round the globe. California could pay to China the
£100,000 owed by the New York house, and thus California, China, and
New York would be quits. A telegram from New York to San Francisco
could manage the business. In the same manner, California could pay
to China what it owes to France and England. In ten days, by means of
the Continental American Telegraph, A, in London or Paris, could send
to B in San Francisco, to forward to C in Hong Kong, the amount owing




1862.]

Pacific Railroad.

319

from B to A, and which A owes to C. About seven per cent out of nine
would thus be saved. Now, seven per cent on £8,000,000 is nearly
£600,000.”

Thus we see the truth is beginnings to be perceived abroad, and the
article foreshadows the conclusion. I make but a single objection to its
corollary— I say it with all possible good humor and courtesy— San Fran­
cisco will not be the clearing-house, it will be New York. Threadneedle
Street, the barometer o f the financial world, will find its fluctuations
registered there, and Wall Street will be the vernier of the scale.
But in order to do justice to these considerations, another subject ma­
terial in interest presents itself. The railway while in itself a project
worthy o f our utmost exertions to complete it, will necessarily involve
another, and this is an ocean mail steam service on the Pacific. I believe
that Congress at its last session had a bill before it granting a subvention
to a California company o f $500,000 for that purpose. It was not passed ;
if it had, I should rejoice; I only wish the same assistance had been ex­
tended to the Atlantic companies. But I had the opinion then, as I have
it now, that this service may be maintained in a simpler and m ore efficient
way. It is well known, that within the last two years a large number o f
wooden as well as iron steam sloops have been added to our navy. Som e
o f them are very swift vessels; but when this war is over what is to be
done with them. Iron armor has superseded wooden walls. The latter
must be abandoned in all future naval wars. Our wooden ships o f the
class I have mentioned, most o f them new and costly, will be laid up in
our navy yards, laid up “ in cold obstruction and to r o t ;” in all proba­
bility a dead loss to the country ! A ll then the government has to do, is
to place these supernumerary vessels on the ocean as governm ent mail
packets, to reduce their armaments and crews to a peace standard, and
establish regular lines on the principal routes between our chief Atlantic
and Pacific ports, and those o f the foreign countries with which we trade.
They will perform the double duty o f protecting out commerce, and be­
com ing its active auxiliaries. This will be far cheaper than to grant sub­
ventions and monopolies to private companies, and avoid all the unpopu­
larity o f such measures. W e should not wait a mom ent to do this, as
soon as this war is over. A ll our ocean mail service is now performed in
foreign ships. W e have not a regular mail steamer afloat. There is only
an occasional private steamer to Havana. I f a New Y ork merchant
wishes to write to his agent in Liverpool, or Havre, or Bremen, or Rio
Janeiro, or Monte V ideo, or V era Cruz, or Para, or H on g K ong, or
Hakodada, his letter must g o forward in an English mail bag. Take ten
or twenty o f our fastest steam sloops and place them on those routes, and
our commerce will immediately revive. W e shall be able to compete
with all and every o f the nations o f the old world, in the markets where
they thrive, and from which they receive their regular correspondence.

How much might be said in favor of the propriety of this measure, o f
the necessity of regular commercial correspondence, o f the advantage of
employing as many of our gallant naval officers as possible after the war
is closed, of keeping a picked class of our brave sailors afloat, and of the
security it would give our merchants in their foreign transactions. As
early as last April, I suggested this plan in the columns o f the New York
Evening P o s t , and submitted it to the consideration of various distinguished




320

Pacific Railroad.

members o f Congress, whose approbation it secured. But in the condi­
tion o f public affairs the proposition could not even be discussed. I hope
that this Convention will think o f it before they adjourn, and by resolu­
tion or some other way, give it their indorsement. It is material to the
prosperity o f the Pacific Railroad. I need say but one thing more on this
head. The French Government, whether the idea was original with it,
or went from this country, I do not know, has recently adopted the plan,
and has placed a number o f its wooden steam sloops on distant mail routes
to carry treasure, passengers, and mails. Strange to say, that while in the
construction o f river and lake steamers we are far in advance o f all other
nations, in our oceanic enterprise we are far behind them. Even the
cities o f Bremen and Ham burgh have more mail packet steamships afloat
than the United States.
Is there any difficulty in the construction o f this road ? N one worthy
a doubt. The numerous governmental surveys, many o f them made by
engineers whom we now recognise as heroes, have settled the general ques­
tion. The grades for a great portion o f the distance are almost imper­
ceptible. The materials are at hand, and o f sufficient cheapness to give
assurance o f an econom ical construction.
M ore than this, it is now
demonstrated that railways may be built at a far less cost than
formerly. One hundred and thirty-seven new railways are about to be
com m enced in the small islands o f Great Britain, under the inducement
that they may be built for nearly one-half less than they formerly were.
H ave we laborers in sufficient numbers to accomplish the work rapidly.
This problem is solved by the fact, that we shall have at the close o f this
war nearly a million o f men, who have been inured to fatigue, and the
toils o f the pick axe and the spade, who have not only shown a love o f
adventure and action, but the qualities o f endurance and resolution. The
employm ent will be congenial to their newly acquired taste and habits,
and ensure liberal and profitable remuneration. Emigrants from abroad
will flock towards this line o f industrial competition, just as when our
canal system was commenced, or the g old of California was discovered.
A s the work will be continuous for many years, we may expect to see
colonies settling around the local stations, each station a village or city
perhaps, ganglions,.knots, and supports to the great nerve which is to thrill
with life, to become supports to it as it extends, and braces as it reposes,
the great sympathisers with its activity and life. N or is the work too
gigantic in itself. It is said there were giants in other days. I think
I ean see such now. The Am erican railway system was a Titanic labor,
but it was completed. In the ten years ending in 1860 its progress was
unexampled. In 1850, the number o f miles o f railway in operation was
8,5 88rYir miles, at a cost o f $296,260,128, about the amount o f the
whole specie in the country.
In 1860, the number o f miles was
30,592TYjr, the cost $1,134,432,909, an increase in mileage o f 22,000Tf „
miles, and o f construction $838,192,781. A nd four-fifths o f this increase
o f these lines and this expenditure were in the loyal States o f this Union,
that having been their proportion in pretty much everything but political
power, in whatever has been accomplished for the prosperity and glory
o f this Republic.
In this honorable career o f railway enterprise, the
State o f Ohio has led the van, having about 3,400 miles o f rails laid
within her limits. Illinois comes next with 2,854, New Y ork next with
2,600, Pennsylvania with 2,300, Michigan with 1,613, Indiana with




1862.]

Pacific Railroad.

321

1,284, W isconsin with 803, Tennessee 837, and Missouri with 657.
In comparison, then, with the actual amount o f money expended on
railways during the ten years mentioned, and the increase o f mileage
22,000, the work o f constructing a railway to the Pacific appears to be
but a very simple and easy undertaking. If 22,000 miles o f these new
railways could be made in so short a time, and 1900,000,000 readily
found for their construction, can we not build one not the tenth part o f
the distance within ten years, and especially when the greatest part of
the money is advanced by the Governm ent? In this view o f the subject
our greatest difficulties absolutely disappear.
On this point, indeed, we need not entertain a doubt. N or am I without
hopes that the road will be found shorter in its lines, much shorter than has
been anticipated. The very best surveys we have were made under great
disadvantages, and are by no means such as would answer for working
plans. For a great part o f the distance the difficulties are quite incon­
siderable. It is in crossing the mountains we shall meet our crosses. If
we could find a straight line between the 100° or 102 degrees o f west
longitude and the parallel o f San Francisco, it would be but about 23
degrees o f longitude in extent, or calculating the distance in miles, at
from 49 to 50 miles to a degree, on the parallels of north latitude 41 and
42, so that by the actual measurement, the road would not be
1,200 miles in length, could be made in half the contemplated time, and
cost perhaps not half the money.
I trust that while the road is being
constructed from the 100° westward, more deliberate surveys may be
made with the purpose o f shortening the route, and if a tunnel should
should be necessary at some point in the mountains, it would be no
more than the French engineers are constructing at Mount Cenis, in the
Alps between Sardinia and France.
The question which must occupy us first and most seriously, is the
financial one. Can the money be had in quantity fast enough and large
enough to construct the forty-mile sections from time to time, so as to
entitle us to the corresponding credits to be loaned by the Government.
I have regretted that the shares were not placed originally at $100 each,
instead o f the present amount o f 1,000.* For a long time the public
will not regard their investments in the stock as a source o f immeuiate
personal gain, though the day will com e they will lose their breath in.
racing after it as an investment. WLen you address capitalists as such,
you must show them a probability o f the payment o f interest within a
reasonable tim e ; when you appeal to patriotic minds, and the higher
sentiments which overlook private interest for the sake o f the public
good, dividends may be left out o f the inducements altogether. Let us
explain for example.
The city o f New Y ork with all the peculiarities
incident to a compact, com peting, heterogeneous population has some
noble elements underlying all its faults, and in emergencies it is as sure
as the foundations o f the earth itself. So that whenever you can make
a platform on which all can stand and all have an equality o f nobleness,
you may be sure it will be crow ded by its citizens. I believe that almost
every respectable inhabitant in N ew Y o rk whose labor or whose income

* The commissioners adopted this idea and will apply to Congress at its next
session for the reduction.
T O L . X L V I I .-----N O . I V .




21'

322

Pacific Railroad.

[October,

is equal to one thousand dollars a year could be persuaded to subscribe
at least one hundred dollars to this stock, with a perfect willingness to
consider it as a donation if it was necessary, or to sink it altogether. It
was done when the Erie Railroad some years since was on the brink of
ruin, and the citizens o f New York called on at public meetings and in
their wards, freely gave their aid, and knew their money would never
come back to them. So are there, as I have already said, thousands
who will give $100 to the Pacific Road who are not able to give $1,000,
and who are willing to go to that extent, but are unable to go beyond it.
A s,to the general financial ability o f this country to construct this
work, I have not a single doubt.
I have already shown what in ten
years has been accomplished, and that, too, in the face o f money panics
and commercial revulsions, which were the effect o f ordinary causes, and
are attributable to the want o f skill and prudence for the time being, in
those men and those operations, that, in a career o f prosperity are little
restrained by wholesome caution, or the lessons o f experience. N ow
the condition o f war has com pelled a new system o f expenditure, and a
basis o f paper money to meet it.
W hether we are bullionists or not,
we must admit that no great war was ever carried on with gold and
silver only. The French people overturned their monarchy with assignats,
our forefathers freed themselves with continental bills, the English, who
have shown such a tender sympathy for us in our financial necessities,
carried on her great wars with France with very shabby looking paper.
The Bank o f England notes were made a legal tender, whilst gold was
at a premium o f 30 per cent, and the silver currency depreciated at the
rate o f 9 d. on 4s. 3d. Spanish dollars restamped at the mint were forcibly
passed for $1,25 cents o f our money.

During the war of 1812-15, M r . J efferson proposed that our Govern­
ment should issue $200,000,000 of similar currency, and had it been done,
the Treasury would not have been so enormous a loser as it was by the
agency of bank credits and bank circulation.
Without much further drain for specie to remit abroad— for it would
seem that the exports of the precious metals no longer assume the pro­
portions they did a month ago, with the fact staring us in the face of
large and increasing exports also of American cereals and other pro­
ducts, larger during the last month than for any corresponding month in
several previous and prosperous years, with a supply o f treasure from the
Pacific coasts of amounts equal to all we remit— we may safely calculate
that there is and will be coin enough at home to resume its customary
and useful office as soon as the war is closed. But as matters now stand,
while the Government is expending from one to two millions a day, and
these millions go into the hands and pockets of our own people, I aver
the country, as a whole, is getting richer in its available means than ever
it was before.
W e know the curious and universal estimate of the
nature and offices of coin. It is the theme of philosophers, the study of
bankers, the average adjuster and balance settler of the foreign merchant,
his guide and his idol. But, notwithstanding, in the every day business of
life, in the conduct of large transactions gold may be a nuisance. Some
gentlemen in this convention could not carry the gold they represent if
they had the strength of Hercules.
It is almost as cumbrous as the
Lacedemonian currency, and is literally carted about in Wall street in
nearly the same way. Policemen walk alongside of the heavy boxes to




1862.]

Pacific Railroad.

323

see that they are not stolen ; porters rush out in squads to lift it carefully
into the vaults; it lies there for months and years, and no one ever sees
it. It is the poor, much abused, and soiled paper money, that a;oes cheer­
fully out in the world to do the work o f this concealed and idle treasure.
Paper and credit have built our cities and railways, paper and credit are
now fighting the greatest battle ever waged for national existence ; they
are still adequate to the performance o f their duties, and are now and
ever will be the medium of all extensive trade and commerce, in spite of
all the denunciations of men who do not comprehend the diverse wants of
mankind, nor care for their necessities, nor appreciate the suddenness of
human changes. To say that a dollar of property has no value unless con­
vertible at once into a dollar o f gold or silver, is just as absurd as to say that
a bushel of wheat in Chicago is of no value unless the bushel measure goes
with it. Whatever paper the Government puts forth in this contest, is
as yet in the country, and must be invested by those who ultimately
retain it as property.
It is the sum of all securities, and therefore the
best. A bank note is referred for redemption to the capital of a fe w ;
a government bill has every foot of land, every atom of personal property,
every man’s labor and every man’s industry and brains pledged for its
final redemption. Those who want gold to settle a foreign balance, or
make a purchase abroad may well pay for it, and a large premium at
that. It is now become a commodity, as the bullionists and money
dealers have chosen to consider it. They are all happy, I trust, in the
consideration, that whatever coin is worth is now paid them for it. Let
them comfort themselves with their own maxims, and admit that accord­
ing to their own theories gold is now occupying its just place and power.
W e are content.
If we want a barrel ot flour, we will pay the price,
if we owe a house in Liverpool who will not receive our flour for its
salseratus or brass buttons, we will send it the gold and pay its price.
But of a practical and efficient currency we never had a better than now,
and it is believed that the country can absorb and profitably use all that
is afloat and much more.
It was never more plentiful in a better time.
It will enable us to build this road, if its friends can be enlightened as
to the character and consequences of this great work.
But to conclude, as we may obtain a better idea of a great structure
by viewing it from a distance, than by looking up at it from its door­
way, so of this project, we may best comprehend its grandeur by a
slight change in our angle o f vision. At the end o f the present century
it is calculated that the United States will contain a population of one
hundred millions of people. What will be then the aggregate wealth of
the nation no one has computed.
Whatever it is now, will be then in
the ratio of one hundred millions to twenty-seven, and equal to all the
responsibility which in the course of events may fall upon it. W e shall
leave our descendants no petty patrimony of a crowded birth-place and
room scarce enough to struggle in, but a continent accessible to every
son and daughter of industry, and without a limit to the energies o f
posterity. W e must not think this so formidable an enterprise, nor be
alarmed at undertaking it. I f we leave posterity a war debt to pay off1,
we give them the means to do it with. There are no doubt many con­
servative and over-timid minds that shrink from the very idea. So there
were when the great Clinton projected the Erie Canal, and was told that
it would never be filled except with the tears o f a ruined people. So in




324

Pacific Railroad.

[October,

our own city of New York. The Croton water system had honest op­
ponents, who predicted that it could never be carried into effect except
at the risk of bankruptcy ; men of prudence they were, who preferred the
safer course o f buying water from the tea pump at a penny a bucket, to
the hazardous one o f bringing a large country river into town. So o f
the Central Park, a monument of a refined and philosophic spirit, so
crowded with grateful visitors, that an admission fee of half a dime each
would produce a revenue of $200,000 a year.
The Panama Railway, which is a faint adumbration o f the Pacific, was
a wondrous undertaking. But its capital and cost o f about $7,000,000
are now practically equal to $40,000,000, on which interest is earned
regularly and large dividends paid, while a fund is accumulating for fu­
ture distribution and profit. I do not pretend to foresee what will be the
dividend value o f the Pacific Railroad to its stockholders. But when
even Europe may traffic with Asia more securely, with more rapidity, and
with more profit than by any route in the old world by sea or land, and
when the distance from London to Canton, as now navigated, is 18,000
miles, and from New Y ork to Canton will be but 11,000, I perceive that
New Y ork has advantage over London which must inevitably tell on the
future o f both cities, and end in the supremacy o f that mart which com ­
mands the greatest trade. The business o f this Pacific road will certainly
enrich this country “ beyond the dreams o f avarice.” W h a t towns, what
villages, what pastoral wealth will be added to those it already possesses,
and out of these what new free States will emerge into life and greatness !
W h a t innumerable auxiliary lines will branch otf from the main trunk to
newly discovered and fertile plains, to happy valleys, and to the exhaust­
less mineral wealth which lies yet “ unprospected” in the teeming Sierras
and the gorges and golden sands o f the rivers which sweep their bases. W h at
is to prevent millions o f oppressed Europeans from abandoning their ties
to the soil which gives them black bread for their daily food, and demands
all else for their rulers; what is to prevent them from a general hegira to
the regions o f gold, when the transit will be so safe, easy, and econom ical,
and wages may be earned at every mile o f the wav ? In the direct advan­
tages to ourselves, we may estimate the time saved in crossing to the
Pacific Ocean and going to the Eastern world, the saving o f expense in
freights, in insurance, in labor, the increased supplies o f gold, the shifting
o f capital from Europe to the United States, the general distribution o f
means to live and to enjoy life, the advance o f the useful and refined arts,
the closer connection o f the States, the consolidation o f the principles on
which our political fabric rests, and our entire independence o f the efiete
European systems under which man has so long been kept down and
“ made to m ourn.”

All these results we may safely anticipate. The present troubles we
are encountering, will prove blessings in disguise. In all ages and coun­
tries, principles important in their day bring forth their fruits at maturity.
Waters long undisturbed become stagnant, and we should lay these trials
to heart like philosophers, or what is best, like Christians. Many o f the
best elements in the American character, hitherto dormant and unvalued,
are coming forth with an unsurpassed splendor. Fortitude, courage, per­
sistency, self-denial, generosity, patriotism, ability, these have at last come
to the front, where, I trust in God, they will remain, not again to be




1862.]

Pacific Railroad.

325

driven into the shade by political managers, who are forever “ purring and
mousing after petty schemes o f political advancement.”
Some o f these qualities o f the American character are showing their
power in the development o f this work we have in hand. W e are to lay
out and construct the longest continuous line o f railway in the world.
Its milestones, if I may be allowed an Irish license o f speech, will be set
along the parallels o f longitude, which will be hourly passed by the trains,
at a speed proportioned to their distance apart. Those travelers going
west will enjoy a prolonged twilight, those com ing east will have an earlier
day. The journey will not be more than we shall have taken, who com e
hither from New Y ork and are about to return. Finally, the revenue,
the commerce, the crowds, the wealth, the prosperity, the national supre­
macy that this road will give birth to, overpower the most lively imagina­
tion.
Perm it me to say in excuse for much I have said, I am not unfamiliar
with the organization and construction o f railways. I believe our treasurer,
as well as myself, m ight cite one memorable example o f a road with which
we were connected which has fulfilled all its early promises, and never knew
any serious impediments.* But railroads can now be constructed so cheap­
ly in comparison with their former cost, that I believe we can in this in­
stance keep within the estimates. In England, as I have already stated,
there are 138 new railway lines seeking legal existence from Parliament
on the ground that they can now be built so econom ically, as to insure
ample remuneration to the stockholders, and so it will be here. I can say
with confidence, as I do with pleasure, that the selection we have made o f
a treasurer, is a great move in the right direction, one that will give the
public the assurance, that this road is commenced in earnest, that it will
be honestly managed and that it will have no serious financial difficulties
which cannot be overcome.

Before taking my seat, thanking you for the attention you have given
me, I beg that the following letter from an eminent hanker and citizen of
New York, may be read by the Secretary. It was handed to me a few
hours before I left the city. It is from a gentleman who, in the heredi­
tary possession of a great name, ably wears its honors, and with universal
acceptance:
[A letter was then read by the Secretary, addressed to the speaker,
proffering the friendly offices of the National Bank, signed by J ames
G allatin, Esq. It was received with applause, and ordered placed on
file with other documents which were presented for their consideration to
the Convention of Corporators.]




* Albany and West Stockbridge.

326

[October,

Distillation o f Petroleum.

DISTILLATION OF PETROLEUM.
S P E C IF IC A T IO N S O F T H E P A T E N T G R A N T E D TO

CHARLES

H A L L , IN T H E U N IV E R S IT Y OF C A M B R ID G E , F O R AN

BLACH FORD

M A N S F IE L D , O F

IM P R O V E M E N T IN

A N D P U R IF IC A T IO N O F S P IR IT U O U S S U BSTAN CES, A N D O IL S

THE

CLARE

M ANU FACTURE

A P P L IC A B L E TO T H E

PURPOSES

O F A R T I F C IA L L I G H T A N D V A R IO U S U S E F U L A R T S .

[Continued from page 298.]

A s obtained by rectification from the still, this spirituous substance will,
however, usually be mixed with a greater or less quantity o f alliole and o f
the next spirituous substance, namely, tolurle, which generally exists in
the naphtha in large quantities, and which boils, when pure, at about 110
degs. A considerable quantity o f this spirituous substance may be o b ­
tained by setting aside separately the last portions which pass over through
the head in which the water is allowed to boil. After the temperature in
the retort has reached 100 degs., or if more than one partial condenser is
used by reserving the fluid which will be found in the intermediate receivers
or distilling vessels, in which the temperature being between 90 degs. and
110 degs. the benzole has been distilled off, while the cumole together with
part o f the toluole has been kept back in the retort by the first head, and
a further portion may be obtained by setting aside the first portion of dis­
tillate, which comes over on distilling through a common retort neck with
or without water or steam, the residue kept back in the retort by the head
on the distillation o f the benzole, and it is best to set aside for toluole what
comes over before the boiling point reaches 130 degs. This spirituous sub­
stance is not destroyed by agitation with concentrated sulphuric acid, and
by concentrated nitric acid it is convertible into an acid somewhat similar
to oil o f bitter almonds. A current o f air passed through it burns with a
pale blue flame, and in an open vessel it will take fire on the application o f
a lighted match to its surface. It is o f about the same volatility as good
rectified naphtha, and is applicable to many purposes in which a volatile
solvent is required. The residue o f the crude light oil, after the separation
o f the aforesaid spirituous substances, consists chiefly o f two oils: one o f
which, viz., cumole, boils at 140 degs., being therefore more volatile than
oil o f turpentine, whose boiling point is about 160 degs., and the other, viz.,
cymole, which boils at about 170 degs., and is therefore less volatile than
oil o f turpentine. Cumole is changed by treatment with concentrated sul­
phuric acid, so that if a quantity o f it, or o f the naphtha or oil o f coal-tar
containing it, be agitated with a quantity o f concentrated sulphuric acid,
a preparation o f cumole equal to about the bulk o f the sulphuric acid em­
ployed, will be concentrated into a resinous substance, which will become
partly dissolved in the acid, and by concentrated nitric acid it is convertible
into an aromatic oil somewhat resembling oil o f cinnamon in taste and
smell, or into an acid resembling benzoic acid, according to the strength of
the acid, and to the duration and temperature o f the treatment with such
acid. A nd this oil, when the spirituous substances having lower boiling
points have been sufficiently separated from it by distillation, will not yield
to air passed in contact with it, in a “ test bottle,” vapor sufficient to afford




1862.]

Distillation o f Petroleum.

327

a flame; neither will it take fire on the surface when o f the ordinary tem ­
perature of the air, upon a lighted match being plunged into it in an open
vessel. If, however, all the spirituous substances be not separated from it,
but only the alliole, and a large proportion of benzole, it will, with the
toluole which is mixed with it, have most o f the physical characters and
properties o f the common naphtha o f commerce, it should be received, if
required separately, when the boiling temperature in the retort is between
about 150 degs. and 170 degs., on the first distillation of the light oil, and
on subsequent rectification, at a temperature nearer to 140 d e g s.; it will,
however, require many rectifications, before it has been so far freed from
the spirituous substances as to yield an oil boiling at 140 degs., and not
having the property, like common naphtha, of catching fire on the surface
on the approach o f a lighted match.
The oil next following in the scale o f boiling points, viz., cymole, which
boils at about 170 degs., also has not the property like common naphtha of
catching fire at the surface at the ordinary temperature o f the atmosphere,
but will extinguish a match or lighted taper if plunged into it, and this oil,
which is obtained chiefly from such portions o f the oil o f tar as boil at
temperatures higher than the previous substance, is more easily obtained
free from spirituous substances ; and when I require to obtain a volatile oil
lighter than water, and characterized by not inflaming on the application of
a lighted match to its surface, I usually manufacture an oil which is a mix­
ture of cumole with cymole, and to this mixture, or to the oil having such
properties and prepared from coal-tar, or the oil o f coal-tar, I apply the
name o f Camphole.
I now proceed to describe the method which I find most convenient for
obtaining such a product.
In distilling the naphtha from which all the benzole has been separated
by the processes above described, or in distilling the naphtha or light oil
from which benzole has not been separated, for the purpose o f obtaining
camphole, the ordinary methods o f applying fire, or passing steam through
the naphtha are applicable, unless it is intended to regulate the distillation
by the boiling point o f the fluids in the retort, and in that case the distilla­
tion by steam is not applicable; and if the thermometer be not used for
this purpose, the aforesaid property o f non-inflammability at the surface
affords a convenient test for the time when the receiver should be changed
for the separation o f camphole. And I apply this test by occasionally col­
lecting a small quantity o f the distillate as it runs from the condensing
apparatus, from which it should run perfectly cold, in an open cup or saucer,
and plunging into it a lighted match or taper. W hen the fluid no longer
catches fire on the surface, but extinguishes the light, I change the receiver
and collect now for camphole. I now continue to receive this oil until either
the temperature o f the retort reaches 200 degs , or 190 degs., or till the
specific gravity o f the oil reaches nearly that o f water, or till common soft
solder placed on the retort melts. Either o f these indications shows that
an oil having a higher boiling point and greater density than the product
which I call camphole is coming over. Camphole in the crude state may
have a specific gravity varying from .880 to .980, or if the distillation be
continued further, to .1,000, and this increase o f density is owing to the
mixture o f denser oils, especially o f naphthaline. W hen pure (that is,
when consisting only o f hydrocarbons lighter than water) its specific gravity
is not higher than .87, though to reduce it to this purity it requires many




328

Distillation o f Petroleum.

[October,

rectifications. It is partly destroyed by strong sulphuric acid, the cumole
which it contains being converted by that acid into a viscid resinous sub­
stance ; it is violently acted on by strong nitric acid, which converts it into
heavy oil, or into acid substances, in a manner analogous to the action o f
that acid on the oil boiling at about 140 degs. This oil is generally ac­
companied by creosote, whose boiling point is about 200 degs. I rectify
this oil by repeated distillation, either setting aside the first portions which
come over on re-distillation, and which will be more volatile than the rest
of the oil, and will take fire on the surface, or allowing these first portions
to be mixed with the subsequent portions ; and on each such distillation I
prefer to cease receiving when the temperature in the retort reaches 190 degs.,
or 200 d e g s.; or, in place of the above, I rectify the oil by one operation
in a manner analogous to the method recommended for distilling the more
volatile substances from naphtha, except that it is necessary in this case to
surround the still head with a fluid, having a higher boiling point than that
o f water; and for this purpose I prefer oil either volatile or fixed ; if fixed
oil be used, I maintain the temperature o f the oil surrounding the head at
a temperature which shall allow all the vapors of the camphole to pass
over, but as little as possible of any substance having a higher boiling p o in t;
and for this purpose I prefer to keep the temperature o f the head at or be­
low 170 degs., by an occasional supply o f cold oil, replacing oil which has
been heated by the vapor which it condenses. And if volatile oils be used
for the partial condensation, I prefer to take some o f the oil o f coal tar
which it has been distilled from, till the temperature of the boiling fluid
has reached 170 degs., so that one heat being applied again to the oil, it
shall commence to boil at 170 degs.; and I place this oil in the outer ves­
sel which surrounds the condensing chamber in the head o f the retort,
which outer vessel is not in this case open above, but is fitted with an as­
cending tube or neck, by which its own vapors are conducted up to a similar
head immediately above, which second head is surrounded with water kept
as cold as possible, so that all vapor that is evolved from the oil o f the
lower condenser is condensed and returned to the lower condenser, so that
the oil in the lower or proper condenser will remain constantly at 170 degs.,
or at any temperature at which its previous ebullition may have been arrested.
In the rectification o f the spirituous substance the residue will sometimes
contain a quantity o f camphole, which may be separated, if required, in the
same manner. Further, the product so obtained as camphole, by the method
above described, may frequently be mixed with a certain quantity o f the
volatile spirituous part o f the naphtha, or o f common coal naphtha, with­
out becoming inflammable at the surface; and it is convenient sometimes
to make such mixture, as the mobility and lightness of the oil are thereby
increased; but if too much o f the volatile oil be added, the mixture will
become too inflammable. Thus far o f the crude oil o f coal tar, which is
lighter than water. I further apply my improvement to the treatment of
the heavy oil o f tar, commonly called “ dead oil.”
I submit this oil to distillation, preferring, however, to separate it as it is
distilled from the tar, into two portions : a first and second— each o f which
should be about equal to the half o f the quantity of dead oil, which the
tar should yield— the object o f this being to facilitate the separation from
the heavy oil o f a considerable quantity o f the light oil last described, viz.,
camphole, which will remain in the heavy oil, and almost entirely in the
first half, and which is more easily separated from the first half than from




Distillation o f Petroleum.

329

the whole o f the dead oil together. The treatment is the same, however,
whether the heavy oil be treated altogether, or whether the first half be
treated alone, for the separation o f this light oil. I do not treat the second
half o f the heavy oil alone for this purpose. I either submit this oil to
rectification, by means o f steam passed through it in the manner ordinarily
practised in the rectification o f the light oil, or I distil it by application o f
heat to the retort containing the oil, either with or without the mixture of
water with the oil. I am aware that the rectification o f the dead oil has
been practiced before, for the purpose o f obtaining a farther quantity o f fine
naphtha from the dead o i l ; but I must remark that I do not practice this
for the purpose o f obtaining naphtha from the oil, but to obtain a quantity
of an oil which differs in its properties from naphtha, in not being inflam­
mable at its surface, when the oil is o f the ordinary temperature of the air.
If steam be used, the greater part o f the light oil will be carried over with
the vapor o f the water, and will float on the water in the condenser, and I
prefer to stop this process when the specific gravity o f the oil so carried
over reaches 940 deg s.; or I submit the oil to distillation in the ordinary
manner, and cease receiving as camphole when the specific gravity has risen
to nearly that o f water, or when the temperature reaches 200 degs., or
210 degs., or when solder will melt on the retort, as described when treat­
ing of the distillation of the lost portion of light o il; or I adopt a head to
the retort, surrounded with condensing fluid, as described for the lost light
oil, whose limiting temperature T prefer to fix at 180 degs., or 190 degs.,
since the boiling point o f the same oil will be raised considerably in this
dead oil, by the greater quantity o f oils having higher boiling points, which
are present with i t ; and I continue distillation so long as any vapor passes
uncondensed through this head, or partial condenser; I mix this distillate
now obtained by any of these methods with the lost distillate, obtained from
the light oil, as above described, being chiefly the same oil, and characterized
by being slightly lighter than water, and so inflammable that it will not
take fire on the surface, at ordinary temperatures, on the application of a
match. Having separated from the dead oil, or from the first half o f it,
as much o f this oil, which I call camphole, as can be obtained by these
methods, I submit the residue to distillation, in a still suited to the distilla­
tion o f a fluid having a very high boiling point, and therefore requiring a
high temperature to be maintained in the retort during distillation ; or if
the first half o f the dead oil has been treated alone, for the separation of
the camphole, I mix the residue of it with the second half o f the dead oil,
or distil it alone; or I treat the residue at once in the manner hereafter de­
scribed for the purification o f the dead oil without previous rectification, but
I prefer to distil it once, or oftener, before so treating it, as by this means cer­
tain substances are separated from it, which increase its bulk unnecessarily,
and which are not required to be purified. And if so much naphthaline be
present in the tar as to cause any portion of the first part o f the heavy oil
to solidify on cooling, when kept separate, I reject the first portions o f the
oil which distil over, so long as it solidifies when received in a thin film on
a cold surface, and I continue to receive the oil either until the distillate,
when received upon a cold surface, again commences to solidify, or till it
begins to show a decided yellow color, or till the temperature in the retort,
as indicated with a thermometer connected therewith, in either of the modes
before described, is 300 degs., either o f which indications shows that the
best part o f the fluid oil has come over, and that the residue contains too




330

Distillation o f Petroleum.

[October,

much para-naphthaline, which is an oil solid at ordinary temperatures, boil­
ing at a temperature above 300 degs., and which diminishes the fluidity o f
the oil when mixed with it, and on each successive distillation the same
precautions ought to be attended to. This oil, when pure, has specific
gravity .900, but from the difficulty o f ridding it entirely o f naphthaline
and para-naphthaline, it is, even when rectified, generally rather heavier
than water. It boils, when pure, at about 240 degs. It is not easily de­
stroyed by sulphuric acid ; so that oil o f vitriol may be used in purifying
it. I call this oil, when rectified and purified, Mortuole.
I proceed now to that part o f my improvement whereby I manufacture
a fragrant oil or oils from some o f the spirituous substances and oils dis­
tilled from coal-tar. I will first state the method o f treatment which I find
the most convenient in practice. I use a vessel capacious enough to hold
about three times the quantity o f oil which is intended to be treated, and
with a long narrow neck to check any expulsion o f vapor or liquid ; which
vessel may be o f aDv convenient material that will not be injured by strong
nitric-acid, such as glass, which should not be thick, lest it be cracked by
the heat which may be evolved during the process, and glass offers the ad­
vantage o f enabling the process in the vessel to be observed. I place in
the vessel a quantity equal in measure to rather more than the quantity of
oil intended to be treated, of the strongest fuming nitric-acid that can be
obtained, o f specific gravity at least 1 .5 0 ; and I prefer to use the pure
acid, free from chlorine. I place the vessel in another open vessel, which
is filled with cold water, so as to surround the first vessel and keep it c o o l;
I then pour into the acid as much o f one o f the light oils, or spirituous
substances, hereafter to be particularized, as the acid will dissolve. The
point o f saturation is ascertained by observing when the liquid separates
into two layers; I then remove the vessel from the cold water, and warm
it cautiously over a gentle heat till the two layers again mix into one clear
solution. I then add a further quantity o f oil until the solution begins to
appear turbid; I then add a few drops more o f the acid till the solution is
again clear and uniform, and warm the mixture slightly for a minute or
two, not however allowing it to boil, I then pour the whole o f the mixture
into five or six times its bulk o f cold water; a heavy yellow or red oil will
fall to the bottom o f the water, and should be about equal in bulk or rather
more than the light oil originally employed. I agitate this heavy oil with
successive large quantities o f clean water; I allow the oil to settle to the
bottom and draw off' the water, after each washing, till fresh water, after be­
ing thoroughly agitated with the oil, has no longer acid properties, or I
wash it with a smaller quantity o f a clean filtered solution o f carbonate o f
soda or o f lime to remove the acid, and then wash the oil, after subsidence
and separation, with a small quantity o f water to remove the lime or soda
salt. A similar heavy oil m -y be obtained from the rectified light oil of
coal-tar by the action o f nitric acid in other ways, as by using an acid of
specific gravity a little lighter than 1 50, which will not dissolve the oil in
so large a quantity as a stronger acid, and that not without the aid o f heat;
and if such acid be used it will be unnecessary to immerse the vessel in
cold water, as above described, or by agitating the oil with twice its bulk of
a mixture o f the ordinary strong nitric acid of commerce with an equal
measure o f oil of vitriol; but by this method the oil will not be thoroughly
converted into the required product, or by heating the oil with a mixture
o f sulphuric acid and nitrate o f potash or so d a ; but I prefer to use the




1862.]

Distillation o f Petroleum.

331

method above described, as being simpler, and yielding a purer product.
And now I come to speak of that part of the oil of coal-tar, which I use
for this treatment. The ordinary7 rectified coal naphtha of commerce, or the
oil which I have described as camphole, may be converted into a heavy oil
by nitric acid, and if the naphtha or camphole has been previously well
purified from the acid and basic oils of coal-tar, the heavy oil so obtained
will have more or less of an aromatic or fragrant smell. But I prefer to
use the volatile spirituous substance, which I call benzole, since the oil pro­
duced from that substance has the most pleasant odor, and for this purpose
the benzole should have been previously treated with concentrated sulphuric
acid, in the manner which I shall describe, to remove the alliole, pyrrol, and
piccoline ; but it is not necessary to rectify the benzole thoroughly from the
toluole, since the oil produced from the toluole by this treatment is very
similar in smell to that produced from benzole. But I prefer to use a
spirituous substance which has distilled over while the temperature in the
retort, or last rectifying vessel, was between 10 degs. and 100 degs., in
which case the oil will be of a light yellow, or orange color, and will have
an odor similar to that o f oil o f bitter almonds, and is useful as a perfume,
especially applicable to soap, or for conferring a pleasant flavor, when used
in small quantities, upon articles of confectionery. When undiluted, it is
sweet like sugar. If cumole, or a less volatile naphtha be used, the color
of the heavy oil produced will be usually red, or dark orange color. The
odor of the product will be more like that of cinnamon, and certain aromatic
acids somewhat similar to benzoic acid will be produced at the same time,
as is also the case with cymole. Care should be taken, especially if the
less volatile part of the light oil be used, not to allow the action of the acid
to take place suddenly, since the acid acts with violence on the cymole, and
may expel the contents of the vessel against the person of the operator.
It may be convenient in this case to add the acid slowly to the oil, instead
of pouring the oil into the acid; and it is evident that the same method
may be applied to the benzole. The fragrant oil so obtained may be rec­
tified by distillation, if required, either by passing steam through it, or by
heat applied to the exterior of the retort containing the o il; but since the
oil boils at a high temperature, viz., at about 210 degs. or 220 degs., and
is liable to decomposition if exposed to a higher temperature, it should not
be distilled over a naked fire, and it is better to distil it by immersing the
retort in a bath of sand or oil, the temperature of which is not allowed to
rise above 220 degs. I call the heavy fragrant oil thus produced from the
light oil of coal-tar, nitro-benzole.
What I claim in respect to this first part o f my invention is, the manu­
facture from bituminous matters, by acting upon them at suitable tempera­
tures, of spirituous substances, which are so volatile that a current of at­
mospheric air, at ordinary temperatures, passed through them may, when
ignited, continue to bum with a luminous flame till all, or nearly all, such
substances are consumed.
I also claim the manufacture from oil, or tarry matters, distilled from
coal, by acting on them, or on matters produced therefrom, at different
temperatures, o f the products herein described, which I have called alliole,
benzole, toluole, camphole, mortuole, and nitro-benzole. And here, by
alliole, I mean a spirituous substance, which consists chiefly o f a dydrocarbonaceous matter, more volatile than benzole; by benzole I mean a
spirituous substance whose boiling temperature is chiefly between 80 degs.




332

Distillation o f Petroleum.

[October,

and 100 degs., and is such that if cooled to 20 degs. below 0 degs., it will
become in part solid ; by toluole I mean so much o f the light oil o f coaltar as may remain after the separation o f the alliole, benzole and cam phole;
by camphole I mean an oil lighter than water, which, when o f the ordinary
temperature of the air, will not take fire on the surface on the approach of
a lighted match, and whose boiling temperature lies chiefly between 140
degs. and 180 degs.; by mortuole I mean an oil whose boiling temperature
lies chiefly between 200 degs. and 260 degs., obtained by the methods
above described ; by nitro benzole I mean a fragrant oil prepared from the
oil o f coal-tar by the action o f strong nitric-acid.
And now having described the spirituous substances and oils which I
manufacture from coal-tar, or from the oils or naphtha distilled from coaltar, and the methods by which I manufacture them, I will proceed to the
second part o f my invention, viz., to that which relates to the purification
o f volatile bituminous and empyreumatic oils, which are found in nature,
or produced by the destructive distillation o f organic substances, or o f
mineral substances, containing or consisting o f matters o f organic (that is,
o f vegetable or animal) origin ; which invention is especially applicable to
the spirituous substances and oils which are manufactured according to the
first part o f my invention, and is partly applicable to the purification o f
bituminous and empyreumatic oils in general.
I will proceed to describe this part of my invention as specially applied
to the spirituous substances and oils particularly described in the first part
o f my invention, and as I proceed, will show in what manner it is partly
applicable to empyreumatic oils in general. As applied to the purification
o f the aforesaid particular spirituou- substances, it depends partly upon the
properties and partly upon the nature o f the foreign substances which ac­
company them, and whose presence in the different parts o f the distillate
depend upon the different volatilities o f these foreign substances approach­
ing more or less closely to those o f the oils and spirituous substances which
I desire to purify.
And for the more perfect understanding o f this part o f my invention, I
will state what these impurities are, o f which I propose to free the hydro­
carbons. It is well known that ammonia, in large quantities,.is present in
the crude tar-oil, besides which there are several oily alkaloids, known to
chemists as aniline, piccoline, pyrrol, &c., which have different boiling points,
and some one or more o f these are found in all the crude oil o f tar, at
whatever temperature it may have been distilled, as some are very volatile
and some are less so. A ll these bodies are removable from the neutral oils
by acids, which for this purpose need not be highly concentrated.
There are certain acid oils, such as creosote, carbolic, and rosalic acid,
which are found principally in the less volatile portions o f the oil. These
acids are removable from the oil by treating it with caustic alkalies. Further,
there are some substances in the crude oil which gradually absorb oxygen
from the air, and become brown, thus giving the well known property o f
becoming dark-colored by being kept. There is very little o f this substance
with the most volatile spirituous substances, and the largest portion o f it is
found in the oil, which boils between 140 degs. and 200 degs. These sub­
stances are removed by being at once converted by treatment with strong
acids or caustic alkalies, or other oxidizing agents, into their brown state, in
which they are no longer volatile, and are therefore left behind on distill­
ing the oil.




(To be continued.)

1862.]

333

Commercial Chronicle and Review.

COMMERCIAL CHRONICLE AND REVIEW.
B U S IN E S S — G O V E R N M E N T

D E M A N D S — D E P O S IT S — G O V E R N M E N T

F A C T U R E S — IM P O R T A T IO N — D U T 1E 8— D E M A N D

PA PE R — T A X E S — E FFE C T

ON

M ANU­

N O T E S — IM P O R T S — E X C H A N G E — E X P O R T S — SP E C IE —

G R A IN — H A R V E S T S A B R O A D — M O R E G R A IN FO R L E S S M O N E Y — C O T T O N I M P O R T S IN T O OR E A T B R IT A I N
— R E C E IP T S FROM T H E

U N IT E D

STATES— EXPO RTS

M O V E M E N T — E F F L U X OF G O L D — B R E A D S T U F F S A S A

OF

COTTON

G O O D 8— R IS E

R E M IT T A N C E — E F F E C T

T I V E R A T E S — A G G R E G A T E E X P O R T OF G O L D — D E P O S I T S A T T H E
T H E I R P R O F IT ON T H E R IS E — G O V E R N M E N T I N T E R E S T IN

FOR

IN

IN

C O T T O N — S P E C IE

STO C K S— COM PARA­

B A N K S — S P E C IE

O C T O B E R — S P E C IE

L A N D — IN F L U E N C E O F T H E I N D I A T R A D E — IN D IA N D E M AND

ON

IN T H E

FRANCE

S P E C I E — A M E R IC A N

BAN KS—
AND’ e N Q -

GOLD

TO

BUY

IN D IA N C O T T O N — G O V E R N M E N T R E C E 1 V E 8 G O L D ON D E P O S I T S — T H E C O U R S E OF P O L I T I C A L E V E N T S .

T here has been rather more business done during the m onth, although
the general course o f trade has been checked by the large military m ove­
ments o f the government. The demand for 600,000 men had the effect
of calling numbers from their usual employments, and o f inducing
many to attend to the duties o f filling up the regiments, and o f ar­
ranging their business in view o f the contingency o f a draft. Nevertheless,
there has been a reasonable activity in the different departments o f trade.
There is, despite the disposition to economize, a gradually increasing
scarcity o f goods, and grow ing necessities which dem and more or less
business. The filling out o f the new levies also gave a spur to all those
branches o f manufacture which are more or less connected with the govern­
ment requirements, and the prices o f raw materials have risen in a marked
manner, and there has been some increased demand for money for these
purposes, as well as for the large sums paid in bounties to the troops.
These sums are estimated at nearly $90,000,000, and although the col­
lection of it from individual towns and cities caused some demand, the
disbursement o f it again for the necessities o f the soldiers and their fami­
lies gave a stimulus to business in almost all localities where the troops are
mustered. The general business done has, to a far larger extent than usual,
been for cash, and, as a consequence, the deposits at the central banks have
not ceased to increase, and as will be seen by inspection o f the bank re­
turns on another page, are now far larger than ever before. In New
York alone they are over $145,000,000, being an increase of $50,000,000
since April. The government is by far the largest customer for goods,
and as it disburses its paper all those who supply it or its employees with
commodities get the paper in exchange, and it accumulates in the banks.
Under this process the amount o f business paper created is small, and the
banks accordingly find very little offering for discount, and they resort
to the government securities. The governm ent in making its large de­
mands for com m odities offers no equivalent; it merely emits its promises
without hitherto having any definite mode o f redeeming them. They
are indeed convertible into other interest-bearing promises, but this only
increases the sum o f its liabilities. W ith the present month, however,
commences the operation o f the tax law, which is altogether an untried




334

Commercial Chronicle and Review.

[October,

influence upon this community. The vast machinery o f assessors, col­
lectors, inspectors, &c., is to be created and put in operation, and its ap­
plication will encounter the multitudinous shifts which every description
o f industry will naturally present to diminish the force o f its operation,
and this may be expected to affect general business. So much under the
law is left to assessors, that when we reflect upon the keen rivalry which
has hitherto existed in all branches o f business, the fear arises that the
tax and the mode o f its administration will prove the turning point be­
tween success and failure am ong numbers o f producers. The main tax
o f three per cent ad valorem upon the gross value o f all manufactures,
will prove severe in some cases. In the cotton manufactures at this m o­
ment, when the price o f the raw material is 53 cents for midling quali­
ties, or five times the ordinary price, and goods have by no means ad­
vanced in equal proportion, the manufacturer is crowded between the loss
in running and the loss in stopping. A large number o f factories are run­
ning at a loss. They em ploy their hands and keep the mills in action,
know ing that in the cost o f the raw material and the cost o f labor ex­
pended in producing cloth, (to the extent say o f $100,000 per an­
num,) there is a loss o f perhaps $4,000 in the operation, inasmuch as
the price o f the cloth has not risen in proportionto the material, ; but to
close the mill and discharge the hands will cost $6,000 per annum.
H ence it is better by $2,000 to keep the mill running. N ow the tax of
$3,000 imposed will inevitably close the mill, because it will make it
cheaper to do so. It is said that the manufacturers will put the tax upon
the goods to be paid by the consumer. This no doubt will be the case
in active markets, sufficiently buoyant to bear the increase, hut not as now,
when the markets drag behind the raw materials. In this manner avast
number o f changes may be expected to grow out o f the operation o f the
tax, and the apprehension o f these changes will make a close adherence
to cash terms prevalent.
The collection o f the taxes will at least cause a current o f paper to set
into the treasury o f the government, thus in some degree supplying it
with means, and absorbing much that is now outstanding. The importa­
tions at the port have been such, in connection with the high duties, as
to raise the sum o f the customs to a considerable extent. In the first
eight months o f the present year the amount collected in New Y ork has
been $37,137,792, or ten millions more than in the corresponding period
o f 1860. These customs have indeed been collected in the government
promises, o f which there were outstanding, in demand and treasury notes,
about $85,000,000 available for that purpose. O f this sum there is still
outstanding about $45,000,000, which must be absorbed before the duties
are payable in gold. It is to be remarked, however, that the demand
notes are now at 16 per cent premium, and gradully creeping up to the
value o f gold itself. The law o f 1857 required that there should be pub­
lished on the first o f every month a return o f the amount o f treasury
notes outstanding, for the information o f the public, and that clause was
made applicable to the present issues by the law authorizing them, and
it is much to be regretted that the Secretary o f the Treasury does not
com ply with that law and make the publication.

The following table shows the imports at the port of New York,
monthly, for eight months:




Commercial Chronicle and Review.

1862.]

POET

Specie.
$166,658
62,007
89,327
26,152
110,383
61,023
219,001
92,713

January....................
February..................
M a rch ......................
A p ril.........................
M ay..........................
J u n e ..........................
J u ly ..................
A u g u s t ....................
Total, 8 m onths..
“
1861.........

OF

Free goods.
$2,552,050
3,381,473
3,476,004,
2,232,816
1,146,093
1,122,092
1,831,932
982.992

NEW

335

YORK.

,---------- Entered for—
Consumption. Warehouse.
$6,663,396 $3,141,725
7,058,174
3,870,486
10,312,689
4,841,84 6
7,141,197
3,853,218
8,091,120
4,600,920
7,278,953
2,874,127
13,799,605
4,502,764
2 939,721
10,289,427

Total.
$12 620,829
13,872,140
18,719,866
13,252,882
12,948,516
12,336,195
20,353,202
14,304,843

$823,269 $17,024,951 $70,734,461 $31,124,807 $119,708,478
33,955,718 22,174,189 38,551,615 33,102,135 127,647,700

It will be observed that the receipts o f free goods have diminished
monthly. As compared with last year, the aggregate imports, exclusive
of specie, is some $24,000,000 larger than last year, although the receipts
of specie have greatly diminished. The importations now struggle against
the increased cost o f im port on one hand, and the sluggishness o f the
markets on the other. The rise in the price o f demand notes necessary
for duties has been 5 per cent during the month, and exchange has ruled
about 2 per cent higher. This, on goods paying a duty o f 40 per cent,
has been equal to an increased cost o f 4 per cent on the invoice in one
month. This uncertainty o f the costs is one o f the enormous evils o f
paper money, now about to be developed.
The price o f bills for each week has been comparatively as follo w s:
KATES

London.

Feb. 1,
“ 15,
Mar 1,
15,
(( 22,
“ 29,
Apr. 6,
12,
«( 19,
U
26,
May 2,
“ 10,
<t 17,
“ 24,
“ 31,
June 7,
“ 14,
“ 26,
July 5,
12,
« 19,
“ 27,
Aug. 2,
((
9,
(( 16,
“ 23,
<( 30,
Sept. 6,
(• 13,
({ 20,

a 1134
a 1154
a 113
a 1124
a 1124
a 112
a 1124
a 1124
a 1124
1114 a 1124
11 24 a 1134
113 a 114
113 a 114
1144 a 115
114 a 1144
114 a 115
1171 a 118
1204 a 121
120 a 122
127 a 129
1284 a 131
126 a 129
125 a 127
124 a 126
1264 a 1274
1264 a 128
1264 a 1274
128f a 130
1264 a 131
1284 a 1294
113
115
112
1121
111
111
1114
1114
m i




OF EXCHANGE.

Paris.

5.10
4 974
5.05
5.074
5.084
5.10
6.074
5.10
5 .1 0
5.024
4 974
4.914
4.964
4.924
4.954
4 95
4 75
4 .7 0
4.70
4.334
4.374
4.45
4.52
4.65
4.45
4.45
4.45
4.364
4.364
4.42

a 4 95
a 4.,90
a 5. 00
a 6,,034
a 5 .0 0 4
a 5..05
a 5..0 2 4
a 5 .084
a 5,,03|
a 5 .074
a 5 .0 2 4
a 5 .0 2 4
a 5..00
a 5 .00
a 4 .914
a 4 .91
a 4 .82
a 4 .66
a 4 .624
a 4 .314
a 4 .324
a 4. 35
a 4. 65
a 4. 474
a 4,.40
a 4. 40
a 4..40
a 4 .324
a 4 .30
a 4 .35

Amsterdam. Frankfort.

424 a 434
424 a 434
424 a 43
424 a 43
42 a 424
42 a 42|
424 a 4 2 f
42 a 424
414 a 424
424 a 424
424 a 4 2 f
424 a 43
4 2 f a 43
42| a 43
424 a 434
43 a 434
4 3 f a 444
444 a 45
554 a 454
48 a 49
484 a 49
474 a 484
474 a 484
47 a 474
474 a 47f
474 a 47f
474 a 47|
484 a 49
48 f a 494
484 a 4 8 f

484 a 434
4 3 f a 44
424 a 43
424 a 434
424 a 4 2 f
424 a 424
42,4 a 424
4 2 4 a 424
424 a 424
424 a 4 2 f
4 2 f a 474
4 2 f a 434
42| a 434
43 a 434
434 a 484
434 a 434
444 a 45
45 a 454
45 a 454
48 a 49
484 a 49
48 a 484
47f a 484
474 a 474
474 a 48
474 a 48
474 a 48
484 a 494
49 a 494
484 a 484

Hamburg.

Berlin.

37 a 3»4 751 a 76
3 7 4 a 384 1«1 a 77
37 a 37f 7.H a 75 4
364 a 374 74J a 75
36| a 374 74 a 74 4
36f a 374 74 a 74 4
36| a 374 744 a 75

364 a 374
36f a 374
364 a 374
37 a 374
374 a 37]
37f a 38
374 a 38
374 a 384
374 a 384
39 a 394
40 a 404
45 a 454
424 a 434
43 a 44
414 a 421
414 a 42
41 a 42
42 a 4 24
a 411
42 a 421
424 a 43
424 a 484
424 a 424

744
74
744
744
75
75
754
754
754
764
78
79
844
864

854
82
82
88
824
834
85
85f
85

a 714
a 74 4
a 744
a 744
a 75 4
a 764
a 754
a 76
a 76
a 174
a 78f
a 794
a 854
a 874
a 864
a 83
a 824
a 834
a 834
a 84
a 854
a 864
a 851

336

Commercial Chronicle and Review.

[October,

The exports from the port during the past month have been as follow s:
EXPORTS,

Specie.

January...................
February.................
M arch .....................
April.........................
May..........................
June.........................
July..........................
August.....................
Total, 8 months.
“ 1861...........

PORT

OF

NEW

YORK.

,---------Foreign.--------- ,
Free.
Dutiable.

$2,658 374 $27,193
3,776,919
49,066
2,471,233
65,388
4,037,675
56,350
5,164,536
76,971
9,867,614
43,358
8,067,337 1,117,193
3,713,532
417,100

Domestic.

Total.

$149,493 $12,053,477 $14,948,437
208,757
10,078,101 14,1 12.843
458.917
8,985,176
11,9-0,714
607,678
8,002,094
12,703,797
752,797
9,837,693
15,342,097
372,561
10,048.832
20,332,375
449,948
14,050,437
23,681,915
256,680
13,046,389 17,833,701

$39,757,220 1,872,629 $3,256,831 $S6,102,199 $131,369,879
3,264,055 1,946,619 3,875,911
82,6S2,529
89,769,117

The exports o f specie have been less for the month o f August, under
the rise which has taken place in its value and the impetus given to the
export o f breadstuffs. The movement in those articles has been verylarge for the year, and their value from the port o f New Y ork has been
$65,000,000, or three-fourths o f the whole value o f domestic exports.
The export quantities sent to Great Britain and Europe will be found on
an another page o f this number, and it will be observed that the quan­
tity so sent has been larger than ever before, and has proceeded at a small
price. In other words, we have given large quantities of grain for little
money, yet those quantities of grain exported to uncertain markets have
been the chief dependence for the payment o f the goods imported. For
the com ing year the wants o f Europe, in respect to grain, are represented
as less, but the imports will not, in all probability, be much less. The
crops are now, at this early period o f the year, represented as good
in England, and, on the other hand, the distress in the manufacturing dis­
tricts is very great, and this leads to diminished consumption o f food.
The probability is, therefore, that if as much grain is exported this year
as last it will realize less money. The following table, from the English
official returns will indicate the effect o f the war upon her trade. The
cotton imported into Great Brittain for seven months, to August 1, 1862,
was as follow s:
Brazil.

1861___ cwts.
1862 ...............

66,223
118,775

Egypt.

East Indies. Other places.

256,024
396,017

1,041,798
1,159,289

33,198
170,200

Decrease.................................................. ..............cwts.

U. 8.

Total.

6,714,499
40,482

8,111,742
1,884,763

6,674,017

6,226,979

The value o f the cotton im ported in 1861, w a s $ ll7 ,5 0 0,00 0; in 1862,
$38,000,000— a decrease o f $79,500,000 in the money paid for cotton
alone. This is one reason o f the continued abundance o f money in Eng­
land. The decline in the amount paid to the United States was one
hundred m illion. Owing to the fall in the price there was also a fall in
the amount paid to the United States for food, th u s:
V A L U E O F C E R T A IN IM P O R T S F R O M TH E U N ITE D STATES F O R S IX MONTHS.

Cotton.

1 8 6 1 .....................
1 8 6 2 .....................
Decrease




Wheat.

£20,706,200
226,937

£3 ,332,038
3,067,549

£20,479,263

£264,489

Wheat Four.

£1,844,705
1,941,905

Total.

£25,882,143
5,236,391
£20,645,752

1862.]

Commercial Chronicle and Review.

337

Notwithstanding the great decrease in the imports of raw cotton into
Great Britain, her exports did not decline in proportion. They were as
follows:
1 8 6 1 ...................
1 8 6 2 ...................

Cotton Goods.

Cotton Yarn.

All other goods.

Total Exports.

£21,117,913
17,541,415

£5,300,555
4,080,328

£43,819,217
48,024,637

£70,237,685
69,440,480

The well known influence o f distress in England is to increase exports
o f those goods the consumption o f which diminishes at home. The over
stocks o f cotton goods are now greatly reduced, and the price o f cotton
has risen to 62 cents per pound for New Orleans. The ett'ect o f a re­
opening o f the Southern ports for the sale o f cotton would, under these
circumstances, produce an enormous demand for money in England and
at the North. It would be a long time before cotton would fall to its
old level. In the meantime, breadstuff's being the only dependence of
the North, to pay for sugar, tea, coffee, and other imports, the prospect
is o f a large export o f specie, of which the movement has been as follows .
S P E C IE

Exported.
Received.
Jan. 4.. . ...........
“ 1 1 ... $1,445,385
1,446,219
“ 1 8 ...
1,246,029
$22,855
“ 2 5 ...
289,669
1,514,154
Feb. 1 ...
115,698
1,052,313
“
9 ...
117,101
1,056,426
“ 1 5 ...
187,253
“ 2 2 ...
176,161
855.755
March 1 ..
“

8 ...

“ 1 5 ...
“ 2 2 ...
“ 2 9 ...
A pril 5 ...
“ 1 2 ...
“ 1 9 ...
“ 2 6 ...
May 2 ...
«
9 ...
“ 1 7 ...
“ 2 4 ...
" 8 1 ...
June 7 ...
“ 1 4 ...
“ 2 1 ...
“ 2 8 ...
July 5 ...
“ 1 2 ...
“ 1 9 ...
“ 2 7 ...
Aug. 2..
“
9 ...
“ 1 6 ...
« 2?
“ so..
Sept. 6..
“ 13..
“ 20..

...........

815,524
........... ..
699,597
996,445
1,110,231
844,577

...........

868,600
755,102
1,913,355
2,282,137
1,618,876
617,361
986,143

...........

811,268

...........

1,244,000
2,128,240

. ........ .

941,081
1,176,434
757,629
1,100,693
953,340
937,776

123,316
91,161
6,088
628,708
823,906
328,127
1,000
800
27,695

500
650
18,976
222,546
2,070
2,200
1,588
1,750
4,000
1,382
....
700
1,040
9,280
5,120
69,859
11,150

AND

P R IC E

OF

GOLD.

Received.

Exported. Gold in bank.
$442,147 $23,983,878
$885,923 1,035,025 25,373,070
547,703 26,120,859
322,918 26,698,728
627,767
310,484 27,479,533
854,000
976,235 28,196,666
614,146 1,156,154 28,114,148
759,247 , 734,512 28,875,992
741,109
610,774 29,826,959
679,075
585,236 30,436,644
677,058
477,335 30,773,050
540,968 32,023,390
490,368
779,564 32,841,862
581,292
673,826 33,764,382
1,505,728 34,594,668
617,279
693,432 34,671,528
635,546 1,151,300 35,297,944
410,804
712,275 35,175,828
484,019 1,574,166 32,239,868
604,682 1,093,031 30,280,697
604,682
938,032 80,672,760
224,911
881,452 31,397,284
553,035 1,647,299 31,284,882
352,391 1,990,327 31,162,048
612,461 3,156,988 31,047,945
893,212 3,094,101 30,832,626
2,647,060 31,790,519
641,451 2,424,916 32,098,174
441,179 1,846,023 31,926,609
784,537 33,064,575
Golden Gatelos
748,523 34,022,490
890,552 34,611,069
964,422
700,431 35,301,778
919,825 35,538,486
1,089,111
1,137,644 35,640,984
551,097 36,138,928
807,563
1,042,835 37,125,245
934,415
490,895 37,863,037

Total. 32,168,190 3,248,409 17,305,655 42,233,203
YOL. XLVII.— NO. IY.
22




Price of gold.
2 a 4 prem.
4 a 5
4 a 41
2 a 34 «(
a
S£ a 3 f
4 a 44
3 a 34
2 a 24
I f a 2f
2 a If
Id a I f
lia If
If a 1
I f a 2f
2 a If
H a If
2f a 3f
3i a
8 a 3f
H
a 3f
3f a 3f
Sfa4f
4 f a 6J
6 a 64
7 a 94
9 a 10
94 a 17
17 a 20
164 a 17
144 a 16
124 a 13
144 a 15
15 a 1 5 f
16 a 16-jr
164 a 18J
19 a 194
17 a 174

(«
“
U
ti

It

a
it

(i
“
(<
“
((
“
it
it

“
it

338

Commercial Chronicle and Review.

[October,

The efflux o f gold has subsided from the large exports o f June and
July, which were stimulated by the quantities o f stocks sent hither for
sale, and which could be realized at a comparatively lower rate in gold.
Thus, in June government coupons that could be sold at 106, and remit­
ted with exchange at 114 in August. The stock was only 98, and ex­
change had risen to 130, which was 6 per cent less for the stock, and 16
per cent more to remit. This being more or less the case for all stocks,
the process o f conversion became too costly, and attention was turned to
breadstuft's as a means o f remittance. The gold continued to flow out,
however, since the balance was largely against the country, and as it di­
minished in volume here the price rose :
P R IC E S

U N IT E D S T A T E S P A P E R .
A ugust

March

1 ,...........
13.............
19.............
“
26.............
1.............
April
<<
7.............
“
30.............
10.............
May
<i
17.............
ti
23.............
it
31.............
7.............
June
“
14.............
“
26 ,...........
July
5.............
“
12.............
it
19.............
it
2 7 ,............
2.............
August
»<
9 ,...........
it
16,............
U
2 3 ...........
“
3 0 ............
6 .. . . .
Sept.
“
I S ............
M
2 0 ............
((
2 6 ...........
«
«<

.---- 6’s, 1861.---- >
Reg.
Coup.
5's, 1874.
85£
93$
92$
93
86
93
94
94
88
94$
94$
87|
93
93
87
93$
87
93$
98$
89$
m
1031
94
103
105
105
96
1041
104$
96
1041
104$
96
103
106
96
103$
107$
97f
102$
106$
96$
100$
100$
95
100$
100
88
98
98
85
99
86$
99
98$
98$
85$
99
100
85$
100J
100$
90
101
101
90
101$
101$
90
99$
99$
88$
99$
99$
88$
102
102
90
101$
101$
90$

7 8-10, 6 p. c. certif.
1 year.
3 years.
99$
..
100
.,
100
100
97
96$
99$
100
97
99$
102$
99$
104
100$
105
100$
105
100
105
100$
106$
100$
106$
99$
105$
98$
102
103
99
101$
97$
98$
103
102$
98$
103$
100
100
100
104
99f
100
104$
103$
99
103
98$
104$
99
104$
99$

demand
Gold, notes.
2$
..
..
H
H

2$
if
2$

par.

24
3
3$
3f
4$
6$
9
10
17
19
17
15
12$
15
15$
16$
18f
19$
17
20$

i

$

4
4
1
3
4$
54
14
8
6$
64
54
n
8

84
8
8f
12$

16$

It will here be observed that the value o f the 1-year certificates, on
which the interest was paid every six months in gold, has been, notwith­
standing the low price o f money, 3 @ 4 per cent on call below par. The
demand notes o f the goverment, receivable for customs, have latterly risen
m ore rapidly than gold. Because o f the more active demand for duties at
the close o f July, they were 6£, and Sepember 20, 12|- per cent premium
— the price o f gold being the same.
It appears that since the suspension o f the banks at the close o f De­
cember, there has been received from California $17,305,600, and there
has been exported 842,233,203, showing a loss o f 824,900,000. In the
same time there has been sent South for produce, estimated, 86,000,000,
making a total o f 831,000,000, G old has, however, entirely gone out of
circulation, and accumulates in the banks, as well on their own account
as for the speculators who hold it in the banks on special deposit.
It
j s known that many o f the banks, like the Chemical Bank o f New




1862.]

Commercial Chronicle and Review.

839

Y ork, have never suspended their own specie payments. It does business,
however, in government money. Those who deposit paper receive paper
back ; also, those who deposit gold get gold back— a double currency is
thus established. W h en buyers o f gold place it in deposit it is kept, as
o f yore, for their use.
It will be observed that as the banks hold, by the returns, $37,000,000
of specie, worth 20 @ 21 per cent, if it was all their own they would
have profited to the extent of $7,000,000, simply by the depreciation of
paper. It is remarkable that, notwithstanding the large amount o f g ov­
ernment paper out and com ing out, the banks, so far from having their
circulation restricted by it, have largely increased their issues. Those o f
the city o f New Y ork now have $9,700,000 outstanding, against
$5,300,000 last March— an increase o f $4,400,000. It results from the
rise in gold, or, more properly, the depreciation o f paper, if the banks
own the gold now in their vaults they would have made their circulation
clear, since that circulation is payable in government notes. Thus the
banks have held on an average $35,000,000 since April, when it was
nearly par in demand notes. That sum will now realize $42,000,000 in
demand notes, giving a profit o f $7,000,000, which will more than re­
deem all their own notes then outstanding. These new issues are doubt­
less small notes, demanded by the disappearance o f gold and silver from
circulation.
The bank institutions are thus profiting largely by their
paper issues. The deposits o f paper with them they have converted into
government stocks, and these stocks, on which the interest is payable in
gold, they have deposited with the Bank Department for circulating notes,
which are gladly taken, by the public in small denominations. The pay­
ments o f interest in gold by the government is now becom e a serious
matter, since the value o f gold ranges from 16 @ 20 per cent.
The in­
terest, amounting to $1,875,000, on the O ctober issue o f 7 .3 0 bonds is
due in gold on the 19th. If the governm ent was required to go into the
market and buy that gold at the present price— 17^ per cent premium—
it would pay $327,925, which raises the annual interest to ijear 9 per cent.
This immense profit is made by the banking institutions on the basis o f
the sinking value o f paper as compared with gold and silver. The effect
of the stoppage o f the cotton exports operates to carry gold out o f the
country as a consequence o f the absence o f the bills which the cotton
should furnish. But the same cause operates in another manner to cause
a direct demand for gold to replace the silver which is drawn to India..
In usual years the demand for silver for India is very large, the balance
being in favor o f that country. In the first seven months o f the present
year the movement o f silver and gold in France and England has been

as follows:
Im p ort ............
E xp ort ............

.-------------------France.----------------- »
Gold.
Silver.

.----------------- England.----------------- *
Gold.
Silver.

$60,410,200
31,260,101

$56,027,450
39,002,120

Excess exports............................
“
imports $29,156,099

$16,239,101
17,428,107

$33,308,220
33,029,305

$1,189,006 $17,025,330
$278,915
.............................................................................

The exports of gold from England are to France and the North of Eu­
rope, silver returning in exchange, to mix with that coming from Mexico
and South America, in export to the East Indies. The demand for silver




340

Commercial Chronicle and Review.

[October,

for the East Indies increasing with the demand in England for East India
products. The state of the cotton market has been such as to draw
largely upon East India for raw cotton, and to diminish the quantity of
cotton goods sent thither, as follows :
/---------Cotton from India.--------- ,
Cwts.
Value.

1 8 6 1 .....................
1 8 6 2 .....................

692,770
1,001,427

Goods to India.

£1 ,683,190
3,914,012

£7,873,781
6,029,111

In crease..........
.................
£2 ,231,022
Decrease....................................................................

...................
£1,844,670

Thus there has been S i 1,000,000 more bought o f India and $9,000,000
less sold to her o f cotton in six months.
The result was an export o f
$28,009,000 in silver in seven months ending July 31, 1862, or $3,000,000
more than in the same time last year. Silver in London rose, conse­
quently, from 60cf. per ounce to 62 d., for Mexican dollars, or rather more
than 3 per cent. As a consequence, gold was more in demand for the
Continent, to exchange for the silver desired for the India market. E n g­
land was required to pay India double the money for the same quantity
o f cotton. D uring the six months ending August 1st, England imported
from the United States 4,194,900 lbs. o f cotton, at an average o f 25 cts.
per pound. In the same period o f the previous year she im ported from
the United States 660,873,937 lbs., at an average o f 15 cts.
To draw
her supplies from India at double the usual price will, it will be perceived,
involve a drain o f specie to India which will carry thither all that is ac­
cessible. In other words, all the specie held by the Northern States will
be in demand to supply England with India cotton. The influence of
that demand upon the finances o f the governm ent will be very considera­
ble, since its credit must be affected by the visible rise in gold which an
active and effective demand for it will not fail to create, and which makes
more onerous at every recurring dividend-day the obligation to pay in­
terest in gold. The present course o f the im port trade indicates that the
government paper will suffice to meet the duties for a year to com e. After
it is exhausted the customs will be received in gold in sums sufficient to
pay the interest on the debt. This will relieve the government from the
expense o f buying gold, but it will throw it upon the importers. In other
words, it will by so much enhance the duties to be paid by the consumer,
and will operate as a higher rate o f interest; but the mode o f doin g it
is far more injurious than would have been a direct tax. The department,
to meet this gold difficulty, agreed to receive gold on deposit at the Treas­
ury department at 4 per cent interest payable in gold. Thus putting off
the necessity o f buying gold until the exhaustion o f outstanding Trea­
sury notes shall give the government gold for duties. The cotton and
other production o f the South have hitherto been a large proportion of
the national wealth and governm ent support. The course o f events has
now made those productions for the future improbable, since the procla­
mation o f the President, in accordance with the law o f Congress, changes
the whole condition o f Southern labor and undermines the productions
at least for a time. This procedure throws the whole weight o f the g o v ­
ernment debt and expenses upon Northern industry, and greatly com pli­
cates the financial position.




COMMERCIAL

1. T h e T a x

on

T reasu ry

M anu factu red

D epartm ent

G oods.

Sta m p.

Stam ps.

M is s is s ip p i

R iv e r .

REGULATIONS.

2. L egal

3. T he

F o r e ig n B o n d h o l d e r s a n d t h e T a x
on t h e

341

Commercial Regulations.

1862.]

B il l .

7. C h ic a g o

D uty

T ender
on

C h a in

5. P a l m y r a
C urrency.

N otes

Islan d .
8.

in

Cables

C h ic a g o

w it h o u t

an d o th e r

a r t ic l e s

6. R e g u l a t io n s

C o m m is s io n s

to

for

th e

.

4.

T rade

pu r c h a se r s

of

9 . D e b e n t u r e C e r t if ic a t e s .

THE TAX ON MANUFACTURED GOODS.

The following correspondence is of great interest and importance to
manufacturers:
Treasury D epartm ent, Office o f Internal Revenue, ^
Washington, D . C., A u g . 8, 1862.
J
To the Hon. S. P. C hase, Secretary o f the Treasury :
S i r : I am in daily receipt of letters containing inquiries relative to the
construction of the seventy-fifth section of the act entitled “ An act to pro­
vide internal revenue to support the Government, and to pay interest on
the public debt.”
The magnitude of the interest involved in these in­
quiries is such that I desire the opinion o f the Solicitor of the Treasury,
or other appropriate legal adviser of the Department. The questions on
which I ask advice are:
jFirst, Will a manufacturer, who, previous to Sept. 1, shall have removed
goods or wares, otherwise liable to taxation, from the place or premises
where manufactured, to another place, or to other premises in the same
city or town, be thereby exempted from assessment on goods so removed ?
Second, Will a manufacturer, who, previous to Sept. 1, shall have re­
moved goods or wares, otherwise liable to taxation, from the town or city
where the manufactory is situated to another town or city, be thereby
exempted from taxation on goods so removed ? These questions assume
that the manufacturer is the owner of the goods on the 1st of September.
Should the opinion be that the manufacturer in the cases stated is exempt
from taxation, I then desire to know whether a manufacturer of the articles
mentioned in schedule C will, under the same circumstances, be likewise
exempt from taxation.
Your obedient servant,
G eorge S. B outwell,

Commissioner o f Internal Revenue.

The Solicitor of the Treasury, to whom this letter was referred, returned
the following answer:
Treasury Department, Solicitor's Office, Sept. 6, 1862.

Sir : I have the honor herewith to return the letter of the Commissioner
of Internal Revenue, dated Aug. 8, 1862, asking the opinion of the So­
licitor of the Treasury upon certain questions which are stated by the Com­
missioner. By an inspection of the first paragraph of the section referred
to, it will be perceived that there are several classes of merchandise which
are made subject to duties: First, such as are produced and sold alter the




342

Commercial Regulations.

[October,

1st day o f September, 1862. Second, such as are manufactured or made
and sold after that date. Third, such as are removed for consumption;
and Fourth, such as are removed for delivery to others than agents of the
manufacturer or producer within the United States or Territories thereof,
after the same date.

It will also be perceived that, giving to the language employed in the
description of the last two classes its widest signification, those classes
would embrace goods removed for consumption in the one case, or for de­
livery in the other, whenever— “ at whatever time”— they might have
been manufactured, or “ from whatever place the removal might be made.”
The object of the last proviso of the section was to limit the effect of the
language thus employed.
This limitation has been made by providing
that the duty shall apply only, first, to such articles as are manufactured
on or after the day specified, in which case it is immaterial from what
place the removal occurs; and, second, to such as are manufactured and
“ not removed from the place of manufacture” prior to that date ; thus,
in the latter case, rendering the place o f manufacture the only one a re­
moval from which will subject the goods to duty.
The remaining points which it will be necessary to consider in order to
supply answers to the first two inquiries of the Commissioner are, first,
What is to be deemed the place of manufacture? and, second, What will
amount to a removal from it? Upon the first point, I am of opinion that
by the expression, “ the place of manufacture,” Congress intended to desig­
nate the premises where the manufacture is carried on, together with the
store-rooms therewith connected, and not the town and city in which the
manufacture is prosecuted.
I do not conceive it to be essential that the
place of storage be on the same lot, or even adjoining the lot on which the
goods are actually produced ; but it must be a place connected with the
manufactory, and used, as to the goods in question, as a place of storage.
The other point, so far as it involves more than the mere fact of physical
removal— if, indeed, it be anything more than a modification of the ques­
tion just considered— is one, as it seems to me, of some difficulty. Ordi­
narily, the place of manufacture would be understood to be either the
premises where the actual production occurs, or those commonly used for
the storage of the goods produced. But suppose a manufacturer to send
goods to a temporary place of deposit in the same town or city with his
manufactory, but for storage only, and perhaps for the mere purpose of
avoiding the duty imposed by the act; or suppose a manufacturer who,
beside disposing of his wares at wholesale, has in the same town or city
with his manufactory an establishment where he sells them at retail, to
send some of his goods to such retail establishments for sale ; would the
removal in the one case or the other thus supposed be such a one as is con­
templated in the proviso referred to?
I think that in the last case stated it would be so, and that in the former
it would not.
But again, suppose a manufacturer never to make sale o f his wares at
his manufactory, but to have connected therewith in some distant town or
city a place o f storage and sale to which he has sent goods— or suppose a
manufacturer to send to such distant place, merely for storage or to avoid
the payment o f duty, a portion o f his goods— would the removal in either
or both o f these cases be such as, if occurring before the 1st o f September,
to exempt the goods from duty ? As I have stated, I consider/this a ques­




1862.]

Commercial Regulations.

343

tion not without difficulty, but I incline to the opinion that in both cases
the removal must, under ordinary circumstances, be held to be complete.
I am o f opinion that it would be too wide a latitude o f construction to
consider a storehouse in a distant town or city as, under ordinary circum­
stances, embraced within the description o f “ the place o f manufacture.”
W hat I have written will indicate my views as clearly as I am prepared to
state them upon the first two inquiries propounded.
As to the last inquiry, I have to say that, beside the seeming impro­
priety o f adopting a construction which would impose a duty upon one
class o f goods, while another class, equally bound in natural justice to pay
duty, should be exempted, I conceive that the proviso under consideration
applies as well to articles enumerated in Schedule C, as to those mentioned
in section 7 5 ; the proviso is general, and applies to all articles upon which
a duty is imposed by the act.
The burdens imposed upon the articles
mentioned in Schedule C are not the less “ duties” that they are imposed
by way o f requiring the articles to be “ stamped.” I am, therefore, of opin­
ion that the same rule must apply to the articles enumerated in Schedule
C as applies to those mentioned in section 75.
W ith high respect,

Edward J ordan, Solicitor.
LEGAL TENDER NOTES IN CHICAGO WITHOUT THE TREASURY DEPART­
MENT STAMP,
The Chicago Tribune o f September 2d contains the extraordinary state­
ment that there are legal tender notes in that city circulating without the
government stamp affixed to them, as it professes to be on all genuine
notes. The Secretary o f the Treasury says “ possibly they are genuine.”
The following is the statement by the T ribun e:
There are quite a number o f Treasury notes in circulation without the
red stamp. There being some doubt as to the validity o f these notes, a
dispatch o f inquiry was sent to Secretary Chase, to which the following
reply has been received :
W ashington, Sept. 1.
A. Mayer, Sherman House :
No notes are valid without the seal.
Possibly they are genuine, how ­
ever; and if so, they will be redeemed as mutilated notes.
(Signed)
S. P. Chase.
THE DUTY ON CHAIN CABLES AND OTHER ARTICLES.
The Secretary o f the Treasury, on appeal, has affirmed the decision o f
Collector Barney, imposing, under the act o f March 2, 1861, duty at the
rate o f two cents per pound on merchandise claimed by the importers as
chain cables, made o f wire or rods less than one-half o f one inch in diame­
ter. To this it is interposed that, in commercial usage and parlance in this
country and England, there are no chains known as chain cables made o f
wire or rods o f less than one-half o f one inch in diameter.
It is also
affirmed that Orange mineral was properly assessed at $2 25 per hundred
pounds. It is not provided for by name in the law, but is used for the
same general purposes as red lead ; and that compositions o f glass for jew ­
elers’ use, being a “ manufacture of glass, or o f Which glass is a component
material,” is subject to a duty o f 30 per cent ad valorem.




344

[October,

Commercial Regulations.
FOREIGN BONDHOLDERS AND THE TAX BILL,

The following correspondence is of great interest to foreign holders of

the favor of replies to the following queries :
Under the United States Tax Bill, soon to s o into effect, what tax will
foreigners resident abroad have to pay from :
F irst , The interest on United States loans ?
Second, The interest on state and city loans ?
Third, The interest on railway bonds ?
F ou rth , The dividends on shares in railway, gas, and other corpora­
tions ?
F ifth , In what manner and by whom will such taxes be collected ?
W e desire to make known to our correspondents abroad, as soon as pos­
sible, not our own but an authoritative interpretation of the law.
This you will please accept as our apology for thus trespassing upon
your time.
W e have the honor to be, sir,
Your obedient servants,
B arclay & L ivingston.
(Signed)
To Hon. S. P. Chase, Secretary o f the Treasury , &c., Washington,
B . C.

Treasury Department, Office o f Internal Revenue ,
Washington, D . C., Sept. fi, 1862. 1

Sirs : I have the honor to acknowledge the receipt o f your letter of the
28th of Avgust.
In reply, permit me to say that whenever coupons are payable in a for­
eign country, no deduction can be made legally by virtue o f our excise
laws.
On dividends and coupons payable in this country, the deductions will
be made in conformity to the excise law.
In neither case is the residence of the bolder to be regarded.
Your obedient servant,
G eo . S. B outwell,
Commissioner.

Messrs. B arclay & L ivingston, New York.
PALMYRA ISLAND,—THE KING OF THE HAWAIIAN ISLANDS DISPUTING OUR
RIGHT OF POSSESSION,

W e take the following from the Pacific Commercial Advertiser of Hon­
olulu :
“ By the following notice, which was in the last issue of the Government
gazette, it appears that Palmyra Island, located nearly a thousand miles
distant from this group, has been taken possession o f and formally annexed
to this kingdom :
“ P roclamation.— Whereas, on the fifteenth day o f April, 1862, Pal­
myra Island, in latitude 5° 50' North, and longitude 161° 53' W est, was




1862.]

Commercial Regulations.

345

taken possession of, with the usual formalities, by Captain Zenas B ent, lie
being duly authorized to do so, in the name o f K a m e i i a m e h a IV., K ing o f
the Hawaiian Islands. Therefore, This is to give notice, that the said
island, so taken possession of, is henceforth to be considered and respected
as part of the domain o f the K ing o f the Hawaiian Islands.
L. K amehameha,

Minister o f Interior.
Department o f the Interior , June 18, 1832.
“ The above may all be perfectly legal and strictly in accordance with
the law o f nations, but our authorities, before they proceed any further,
and appoint a governor, with tax collectors, judges, or other officers for
their newly-acquired territory, should investigate the title to the claim
which is now set up. It appears that formal possession was tak ?n o f Pal­
myra Island, in October, 1859, for the United States Government, by Dr.
G. P. J u d d , the agent o f the American Guano Company, who visited the
island in the brig Josephine. A notice to that effect and the American
flag were left on the island.
The following is a copy o f the notice left
there :
“ Be it known to all People, that, on the 19th day o f October, A.D . 1859,
the undersigned, agent o f the American Guano Company, landed from the
b ’ ig Josephine, and having discovered a deposit o f guano thereon, doth,
on this 20th day o f October aforesaid, take formal possession of this island,
called ‘‘ Palmyra,” on behalf o f the United States, and claim the same for
said Company.
(Signed)
G. P . J udd.
Witnesses :
Agent A . G. Co.
C. II. J udd,
R. D rysdale, M. D.
W . C. Stone.
“ York Island was also taken possession o f in the same way, and by the
same parties. W e believe the “ United States Guano Company” also claim
the same islands, and that a proclamation was issued to that effect from the
State Department at Washington, in favor o f one o f these claimants. It
may be argued that right o f possession can only hold good so long as the
territory claimed is occupied on behalf o f the nation claiming it. This is
an open question, how far that argument can uphold or destroy the claim.
The Hawaiian Government several years ago took possession o f several
islands to the northwest o f this group, and since the proclamation was
made there has been no pretension to occupancy, and the islands may re­
main untenanted for the next fifty years.
Now, cannot the American,
British, or French Government lay claim to and occupy them, should either
government wish to make a naval depot there ? It appears to us that they
would have the same right to occupy Bird Island that we have to occupy
Palmyra. Capt. B ent, in his letter to the Minister o f the Interior, makes
the following report concerning this island, and no doubt for some pur­
poses it may be worth claiming possession ; but if we are to set up a prior
claim to the American Government, and are going to hold it vi et armis,
under the motto that “ might makes right,” our Secretary o f W a r had bet­
ter call for a larger appropriation for his department, and order half a
dozen “ Monitors.” Nothing like being prepared for any emergency.




S46

Commercial Regulations.

[October,

“ B y correct observation, I found the island to be in latitude 5° 50'
North, and in longitude 161° 53' W est. The island is about ten miles in
length and six miles in breadth. The eastern end rises about twenty feet
above the level o f the sea. The landing is on the west end ; and a vessel
can lie in perfect safety in three fathoms o f water. The trees on the island
are cocoanut, pukala, and a species o f the koa. A ll kinds o f vegetables will
grow on the island.
I planted some beans, corn, and watermelons. I
erected a dwelling house on the island, and also a curing house for biche
de m.er.
I left on the island one white man and four Hawaiians, who are
engaged in curing the biche de mer .”

REGULATIONS FOR TRADE ON THE MISSISSIPPI RIVER.
[ o r d e r o f g e n e r a l w . t . s h e r m a k .]

Headquarters F ifth Division,
Memphis, September 8.
Until trade shall be regularly opened with ports and places on the
Mississippi River below Memphis, all commercial intercourse between this
city and Helena, and with intermediate points, will be under joint military
and civil jurisdiction, and be governed by the following regulations— the
object being, while guarding against the conveyance o f supplies o f what­
ever description to individuals or bands in armed or other hostility to the
government o f the United States, not to deny their usual family and planta­
tion supplies to persons who have refused or declined to engage in or other­
wise promote the existing rebellion :
1. All permits shall be issued by the Board o f Trade in Memphis, and
no merchandise which is not so permitted shall be received on board o f any
steamboat or other vessel or vehicle engaged in the business o f common
carriers, except army supplies moving under military authority.
2. Merchandise needed for family and plantation supply (not including
arms or ammunition) will be permitted by the Board o f Trade to persons
residing on either side o f the Mississippi River between Memphis and Helena,
or at Helena or in its neighborhood, who have not taken any active part
in the rebellion themselves, or directly or indirectly, by connivance or assent,
aided or encouraged those who have. Such supplies, however, must go
forward from time to time in limited quantities, and before the delivery o f
the first the recipient will be required to appear in person at either Memphis
or Helena, and make affidavit before a proper officer that no part o f the
supplies so delivered shall be sold or otherwise disposed o f to other parties,
or used in any manner or for any purpose whatever except for the consump­
tion o f his or her family and plantation laborers.
3. For the purpose o f guarding against the abuse o f this privilege, and
detecting attempts to evade or violate its terms, a list o f persons o f the
character above described, residing or having their plantations within the
district o f country named, and who have remained at their usual places of
residence attending to their legitimate business, will be prepared at as early
a period as practicable for the use o f the Board o f Trade. This list will
at all times be subject to revision, that proper names, which at first may be
omitted, may be added to it, and improper ones, enrolled through misrepre­
sentation, be erased.




1862.]

Commercial Regulations.

347

4. For the present and till otherwise provided, all this special transporta­
tion will be committed to a single steamboat, to be settled by the Board o f
Trade, the master o f which shall execute bond with reasonable security that
he will not deliver any package o f merchandise, or any part thereof, at any
place other than that for which it shall have been duly permitted. A nd
such boat shall carry and reasonably remunerate a revenue aid, to be ap­
pointed subject to the approval o f the Secretary o f the Treasury, whose
scope o f duties shall be the same as those o f similar officers on boats en­
gaged in the St. Louis and Memphis trade.
5. The bar o f this boat, and o f all other boats running upon the wateis
within the district prescribed, shall carry among its stores no intoxicating
liquors for sale or barter along the coast, and shall be immediately closed
upon arriving at any port or place where the drinking saloons have been
closed by either civil or military authority.
6. All lots o f cotton, horses, mules, or wagons, shipped north from the
lower Mississippi, must be accompanied by the bills o f sale, witnessed by at
least two witnesses, and duly receipted at the time o f delivery to the pur­
chasers.
7. These regulations are at all times subject to change or revocation by
the authority that establishes them.
W . T. S hermah,

Major-General Commanding 5th Division.
W . D. G allagher, Special A gen t Treasury Department.
CHICAGO CURRENCY,
There was a report telegraphed from Springfield some days since that
large amounts o f Illinois currency had been applied for at the auditor’s
office. The following letter from the auditor to a banker o f th.s city sets
the matter righ t:
A uditor's Office Illinois, Springfield, A ugust 30

D ear Sir : I am in receipt o f your favor o f the 29th inst., in which you
refer me to certain reports that applications are filed with the auditor for
a large amount o f Illinois currency. In reply, I would say that all such
reports are without foundation. The total amount o f currency applied for
at this office is less than §100,000, o f which not one half has been issued.
Yours, respectfully,
J ames K. D ubois, A u d itor.
COMMISSIONS TO PURCHASERS OF STAMPS.
The Commissioner of Internal Revenue has established the following
regulation concerning the commissions allowed to purchasers of stamps.
The commissions will be paid in stamps, that is, a remittance o f §50 will
entitle the purchaser to stamps amounting to $51. A remittance o f $1,000
will entitle the purchaser to $1,050 worth o f stamps.
DEBENTURE CERTIFICATES.
Collectors o f customs at the several ports are instructed to receive in
payments o f duties all debenture certificates issued by them, the same be­
ing made receivable for duties by the act o f March 3d, 1S49.




[October,

Statistics o f Trade and Commerce.

348

STATISTICS OF TRADE AND COMMERCE.
1 . C o m m e r c e o f t h e U n it e d S t a t e s .
stu ffs

fro m

th e

2. P r o d u c t io n o f

U n it e d S t a t e s , 18 62 .

4. T h e N e w

B readstu ffs.

3. E x p o r t

of

Bread-

M e x ic o W o o l T r a d e .

COMMERCE OF THE UNITED STATES.

T he follow ing detailed statement o f the com m erce of the United States
for the years 1860 and 1861, (com piled from the official reports o f the
Treasury Department,) contains much interesting matter. In volume 42,
page 352, o f the Merchants' Magazine, will be found the returns for the
years 1858 and 1859. The aggregate decrease in exports the past year
appears, from these tables, to have been $145,223,105 :
O f this, the decrease in cotton was....................
“
“ to b a c c o ...........................
“
“ specie...............................

$157,755,072
2,121,837
33,146,981

T ota l..............................................................

$193,023,890

Leaving out, then, the decrease in these items o f cotton and tobacco,
(Southern staples, the export o f which has been necessarily cut off by the
war,) and the decrease in the export o f specie, and there will be found
to be in all other articles a gain o f $47,800,785. This favorable result,
it will be seen, is due entirely to flour, wheat, and corn, w hich show a
gain for the year o f $47,925,319.
Q U A N T IT Y

AND

VALUE

OF

EXPORTS

D U R IN G

TH E

F IS C A L

YEAR

1860. ------------------------ ,

■

Products of the sea.
Oil— sperm ............ galls.
■whale & other fish.
W halebon e..................lbs.
Spermaceti & sp. candles.
Fish, dried or sm’d . .cw t.
p ick led ..............bbls.
p ic k le d ............. kgs.

Quantity.
1,336,736
839,872
1,068,895
157,783
219,628
33,S15 )
2,433 J

T o ta l...........................




191,634

75,800
41,601
170,922
32,876

60,623
770,652
271,949
395,909

$2,365,516
169,546
2,777,919
231,668
705,119
164,260
2,703,095
151,404
1,818,238
822,820
295,766
1,533,208
$13,738,559

30, 1861.

1861. -

Yalue.
Quantity.
1,518,457
$2,110,823
581,264
1,009,468
736,552
979,231
143,907
456,408
634,941
219,324
48,852 1
244,028
2,662 ji
$4,451,615

$4,156,480

T o ta l.........................
Product of the forest.
Staves and headings. .M.
Shingles .......................M.
Boards, planks, <fcc..M. ft.
Hewn tim ber..............tons
Other lum ber....................
Oak bark and other d ye.
Manufactures o f w o o d ....
Tar and p itc h ............bbls.
Rosin and turpentine.. . .
Ashes, pots tfc pearls.cw t.
Ginseng.........................lbs.

Yalue.
$1,789,089
537,547
896,293
51,829
690,088

E N D IN G JU N E
,----------------------

73,408
30,078
132,332
8,821
...•

....

55,057
536,207
99,701
347,577

$1,959,392
108,610
2,092,949
97,875
441.979
189,176
2,344,079
143,280
1,060,257
651,547
292,899
878,466
$10,260,809

1862.]

349

Statistics o f Trade and Commerce,
-1860.
lUUUi

r

Product of agriculture.

Of animals—
B e e f ............................tea.
“ ...........................bbls.
Tallow................ . . .lbs.
H ides................................
Horned c a ttle ............No.
Butter..........................lbs.
Cheese..............................
Pork.............................tcs.
“
bbls.
Hams and bacon . . . .lbs.
Lard..................................
H ogs............................ No.
H orses.............................
M ules................................
Sheep ..............................
W ool............................lbs.

Quantity.
78,t m
j76,288
16,269,535
27,501
7,640,914
15,615,799
1,616
^
202,319
25,844,610
40,289,519
48,355
1,6.35
1,435
«...
1,055,928

Total.........................
Vegetable food.
Wheat......................bush.
Flour......................... bbls.
Indian corn ..............bush.
Corn m e a l................bbls.
Rye meal..........................
Rye, oats, & c...................
Biscuit. . .......................
“
. .kegs and boxes
Potatoes...................bush.
O nions..............................
A p p le s ......................bbls.
R i c e ............................ tcs.
“ ............................ bbls.

4,155,153
2,611 596
3,314,155
233,709
11,432
119,236
j46,543
380,372
78,809
84,163
j.
77,837

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

^

■1861,

2,273,768
4,545,831
377,604
233,368
158,080
38,613
389,512

Quantity.
Value.
41,882
j- $1,675,773
65,468
29,718,364
2,942,370
673,818
8,885
223,246
15,531,381
2,355,985
32,361,428
3,321,631
1,682
j- 2,609,818
153,964
50,264,267
4,848,339
47,908,911
4,729,297
463
3,267
1,469
193,4 20
1,799
191,873
....
28,417
847,301
237,816

$20,215,226

$24,035,100

Value.
$2,674,324
1,598,176
1,036,260
1,052,426
1,144,321
1,565,630
3,132,313

$4,076,704
15,448,507
2,399,808
912,075
48,172
1,058,304
478,740
284,673
109,861
206,055
2,567,399

31,238,057
4,823,726
10,678,244
203,813
14,143

$38,313,624
24,645,849
6,890,865
692,003
56,761
1,124,556

110,690
j36,847
413,091
112,523
39,162
|
50,038

429,708
285,508
102,578
269,363
1,382,178

$27,590,298

$74,191,993

15,698,698
Cotton, Sea Island.. .lbs.
j- $191,806,555
1,752,087,640
“
other....................
167,274 )
Tobacco, unmanuf’d.hhds.
15,035 j.
“
cases
15,906,547
17,817
“
bales
2,715
3,810
Flaxseed..................bush.
116,574
596,919
Cloverseed........................
186
9,531
Hemp..........................tons
103,244
1,133,986
Brown sugar................lbs.
32,866
273,257
Hops..................................

6,170,321
j-$34,051,483
301,345,778
160,816 )
18,816 V 13,784,710
19,450
28,540
49,609
200,417
1,063,141
136
8,608
3,275,024
301,329
8,835,837
2,006,053

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

$256,264,996

$149,492,026

Manufactures.

W a x ........................... lbs.
Refined sugar..................
Chocolate. .....................
Spirits (from grain), galls.
“ (from molasses). . .
“ (ftom other matrl’s)
Molasses...........................
V in egar...........................
Beer, ale, porter, & cider.
“
.............doz. bottles




362,474
3,332,045
17,194
748,135
2,865,952
494,643
70,439
340,257
160,887
13,043

$131,803
301,674
2,593
311,595
930,644
219,199
35,292
41,368
31,371

22,202

270,425
3,236,110
9,906
2,994,181
2,885,869
1,362,414
91,593
315,994
136 082
7,477

$94,495
287,881
2,157
867,954
850,546
593,185
89,138
38,262
25,876
13,604

[October,

Statistics o f Trade and Commerce.

350

J.UVU#

r

Linseed oil .............galls.
Spirits of turpentine.. . .
Household furniture.. . .
Carriages, cars, A c...........
H a ts.................................
Sadd lery.........................
Candles, adamantine.lbs.
Soap.................................
Snuff..................................
Tobacco manufactured..
Leather .........................
Boots and shoes___ pairs
Cables and cordage. .cwt.
Gunpowder.................lbs.
S a lt ..........................bush.
Lead.............................lbs.
Iron, p i g ....................cwt.
“ bar...........................
“ nails................... lbs.
“ castings............cwt.
“ other inanufact’s of.
Copper, brass, Ac.............
Medical drugs.................
Cottons, printed A colored
“
white other than
d u ck .............
“
duck...................
“
other manufact’s
Hemp thread...................
Hemp bags, Ac................
Wearing apparel.............
Earthenware, Ac..............
Combs and buttons.........
Brushes and brooms . . . .
Billiard apparatus...........
Umbrellas and parasols..
Morocco, Ac......................
Fire eDgines......................
Printing materials...........
Musical instruments . . . .
Books and m a p s.............
Stationery........................
Paints and varnish.........
Glassware........................
Tinw are...........................
Manuf’s of pewter A lead
Marble and stone.............
India rubber boots and
shoes........ pairs
“
other manufact’s of
Gold and silver leaf.........
Jewelry, A c .....................
Artificial flowers..............
Trunks and valises.........
Lard o i l ............. .galls.
Oil c a k e ...........................
Bricks, lime, and cement.
Unenumerated manufac’s
Total manufactures.




u ■Mil.

r

Q uantity.

Value.

Quantity.

Value.

37,809
4,072,023

$26,799
1,916,289
1,079,1 14
816,973
211,602
71,332
708,699
494,405
11,354
3,372,074
674,309
782,525
246,572
467,772
129,717
60,446
19,143
38,257
188,754
282,848
6,174,040
1,664,122
1,115,455
8,356,449

42,688
2,941,855

$27,982
1,192,787
838,049
472.1180
156,956
61,469
683,048
455,648
17,703
2,742,828
555,202
779,876
255,274
347,103
144,046
6,241
25,826
15,411
270.084
76,750
5,536,576
2,375,629
1,149,433
2,215,032

4,875,552
6,852,485
39,923
17,697,309
2,946,633
678,136
26,053
3,276,411
475,445
903,468
7,097
5,901
6,007.694
65,726
....

....
....

1,403,506
382,089
6,792,752
430
27,384
625,175
65,086
23,345
61,377
15,979
4,862
19,011
9,94 8
157,124
129,653
278,268
285,798
223,809
227,948
39,064
46,081
176,239
107,693

....

....

....
....
60,209

. .,.

....
—

58,826
182,015
140,187
24,659
207
60,184
55,783
1,609,328
154,045
2,397,445
$39,544,398

_ . . T,
4,569,259
7,202,130
81,465
17,783,363
2,714,466
655,808
28,422
2,319,641
587,401
103,023
14,056
6,941
5,354,536
26,400

—

. . . ,.
....

—

62,729

. ,.
...
85,676

1,076.959
300,668
4,3u4,379
80
39,490
462.554
40,524
32,792
6-',3 60
8,910
1.271
7,507
7,940
106,562
150,974
250,365
347,915
240,923
394,781
30,229
30,534
185,267
33,603
160,088
63,372
48,740
1,459
40,622
81,783
1,386,691
93,292
2,530,689
$35,786,804

1862.]

Statistics o f Trade and Commerce.

,-----------1880.-----------\
Coal...........................tons
I c e ....................................
Quicksilver.......................
Gold and silver bullion..
Gold and silver coin........
Raw produce not specified

Quantity.

Value.

187,059
49,153
....
....
____
____

1740,783
183,134
258,682
30,913,173
26,033,678
1,355,391

Total.................., . .

251

-------- 1S61.---------- s
Quantity.
153,171
44,753
....
___
___
___

$373,189,274

Value.
$577,386
172,263
631,450
13,311,280
10,488,590
2,794,046

$227,966,169

R E C A P IT U L A T IO N — E X P O R T S .

1860.
Products of sea. $4,156,480
“
of forest. 13,738,559
Of animals........ 20,215,226
Vegetable food. 27,590,298
Cotton............... 191,806,555
T ob a cco........... 15,906.547
Other articles..
746,370
Manufactures... 39,544,398
Coal...................
740,783

1861.

I860 .

$4,451,515
10,260,809
24,035,100
74,291,993
34,051,483
13,784,710
3,428,740
35,786,804
577,386

186 !.

$183,134
Ice .....................
Q u ick silver....
268,682
Gold, silver, bul­
lio n ............... 30,913,173
Gold c o in ........
26,033,678
Not specified . .
1,355,391

$172,263
631,450
13,311,280
10,488,590
2,794,046

Total............. 373,189,274 227,966,169

The follow ing tables give, in a com pact form, the number and class o f
vessels built, and the tonnage thereof; also, the total exports and imports,
for the y e a r :
STA TE M E N T

OF

THE

NUMBER

AND

CLA S S

OF

V E SSE LS

B U IL T ,

---------- Class of vessels.----------

M aine...............................
New Hampshire.............
Vermont...........................
Massachusetts.................
Rhode Island . . . ...........
Connecticut.....................
New Y o r k .......................
New Jeisey.....................
Pennsylvania.................
Delaware ......................
Maryland..........................
District of Columbia........
Virginia............................
North Carolina................
South Carolina...............
Florida..............................
Alabam a..........................
Mississippi.......................
Tennessee........................
Kentucky........... ..............
Missouri............................
Illinois..............................
Ohio.................................
Wisconsin........................
Michigan...........................
California.......................
Minnesota.......................
Total.......................




E TC .

Ships
Sloops
and
and canal Steambarks. Brigs. Schooners, boats, ers.
Total.
22
84
1
4
161
5
5
..
.
.
10
..
.
1
1
2
54
6
2
101
.
1
2
1
4
2
1
13
3
11
30
2
50
294
37
205
1
25
6
42
10
2
3
19
58
91
173
1
6
7
14
9
5
33
1
1
49
.
23
23
2
6
18
27
1
8
2
10
1
1
2
2
1
5
1
3
5
.
2
7
1
1
.
.
33
33
11
11
2
4
2
9
5
54
37
3
1
4
9
23
10
40
2
49
7
5
6
11
••
110

38

360

371

264

1,143

Tonnage.
Tons
and
95ths.
57,343 79
4,602 43
49 18
37,206 45
639 11
4,985 79
46,359 25
5,909 07
24,754 79
2,932 21
8,300 91
1,423 22
3,297 17
615 42
57 37
157 26
651 86
1,086 06
62 40
9,717 29
8.289 27
1,537 20
9,180 86
1,269 03
2,689 79
4,715 71
670 86
233,194 35

OF

THE U N ITE D

TH E

TO N NAGE

TH E

F IS C A L

OF

YEAR

STATES-----E X H IB IT IN G

A M E R IC A N

E N D IN G JU N E

COUNTRIES.

F O R E IG N

TH E

VALU E

VE SSE LS

OF

EXPORTS

A R R IV IN G

FROM

TO

AND

AND

IM P O R T S

FROM

D E P A R T IN G

TO

EACH

EACH

F O R E IG N

F O R E IG N

COUNTRY, A N D

CO U N TRY

D U R IN G

30, 1861.
'—
D om estic.

488,647
3,410,560
6(4,511
21,71)4,980
1,081.060
205,645
455,427
124,508

F oreign.
$70,931
J6,339
2,445
5,732
9,609
1S1

IMPORTS.

T otal.

AM ERICAN TONNAGE.

Entered
U. 8.
8,220

465.232
15,913
13,571
61,577
832,122
3,600,745
145,862
205,361
23.778
6,007
2.611,877
1,250,021
168,122
19,601
6,973

$669,101
172,747
19,339
15,112
96,947
50,297
10,478
945,548
4,536,203
8,055,454
6,224
3,719,373
450,879
386,518
254,069
2,754,011
106,400,433
6,482,031
7,653,459
582,335
182,644
14.361,858
8,383.755
5,499,036
257.377
1,038,618

2,811.334
489,496
298,966
1,045,791
2,371,523
136.032,009
2,983,524
190,834
58,346
70,576
18,645,457
4,417,476
1,862,579
245,297
159,259

23,639
15,062
6.235
5,447
18,000
822,685
31,158
3,136
221
1,258
1,996.892
196,709
89,162
3,165
4,522

33,432
7,041
7 171
7,783
25,071
840,035
50,779
53,733
10,986
1,749
2,025,670
297,172
95,983
2,990
12.232

3,040
20,476
25,390
1,428,307
43,436
38,837
64,285
4,002

491,687
3,431,036
629.901
23,133,347
1,124,496
244,482
519,712
128,510

1,436,174
129,334
8,745,763
30,988,674
3,256,875
117,158
8,859
21,842

10,965
4,078
68,259
178,787
14,276

9,126
27.423
16,468
168.624
27,485
1,487
15,518
2,764

43,695
1,125,373
1,183,086

$1,287,952
5,712
17,005
27,879
645,241
13,280
6,441
259,864
7,271,473
8,070,516

7,187
1,544
1,273
10,411
3,159
5,139

1,157
1,809

FOREIGN T O NN AG E.

Cleared
U. S.
5,699
1,082
1,616
360
338
861

E n tered
U . S.
772
3,165
400
6,143
140
130
3.105
62,979
98,026

21,427
1.986
12,491

14.388
11,264
868
2,570
6,495
479,068
54,724
54,228
1,291
„

6S4,879
465,141
48,726
684
5,109
1,137
6,905
10,322
16,835
5,2 p9
2,565
1,459

Cleared
U. s .
946
2,266
690
820
130
3.516
57,233
101,129
714
19,998
1,802
518
887
4,991
488,798
36,174
139,731
1,218
955
731.123
509,928
39,529
1.339
5,747
1.364
10,462
791
7,640
1,116
4,670
2,562
182

[October,

$598,170
156,408
16.881
9,380
87,338
50,116
10,478
901,853
3,410,830
6,872.368
6,224
3,254,141
434,966
372,947
192,492
1,921,889
102,799,688
6,336,169
7,448,098
558,557
176,637
11,749,981
7,133.734
5,330,914
237,776
1,031,645

------ E X P O R T S .-

Statistics o f Trade and Commerce.

Russia on the Baltic and N orth Seas................
A siatic Russia.........................................................
Russian Possessions in N orth A m erica..........
Prussia.......................................................................
Sw eden and N orw ay............................................
Sw edish W est Indies............................................
D e n m a r k .................................................................
D anish W est In d ies..............................................
H am burg..................................................................
B rem en.....................................................................
Other G erm an p o r ts .............................................
H olland.....................................................................
D u tch W est In d ies...............................................
D u tch G uiana.........................................................
D u tch East In d ies.................................................
B e lg iu m ...................................................................
England............................................ ........................
Scotland....................................................................
I r e la n d .....................................................................
G ibraltar...................................................................
M alta.........................................................................
Canada.....................................................................
O ther British N orth A m erican Possessions.
British W est Indies..............................................
British H onduras..................................................
British Guiana ......................................................
Other British Possessions in South Am erica.
British Possessions in A fr ica ............................
British Australia...................................................
British East In d ie s ..............................................
F rance on the A tla n tic......................................
F rance on the M editerranean..........................
F ren ch N orth Am erican Possessions........ .
F ren ch W est In d ies.............................................
F ren ch G uiana......................................................




AND

252

CO M M ER CE

'

2ft,97S
451.028
1,389,997
51,805
12,892,077
1,3SI,0S4
283,866
46,107
28,545
66,171
1,506,066
224,428
26,000
331,977
123,793
184,734

273,501
310,668
60.420
1,624,827
2,246,124
172,540
1,564,062
74.278
1,471,633
1,164,145
4,787,702
674,864
990,788
2,304,355
370,435
9,116
378,053
106262
14r76
5,809,724

97,001
10,617
25,677
1,107,703

2S3,369
330,871
60,420
1,676,719
2,427,626
179,032
2,215,890
87,461
1,536.992
1,220,786
5,023.217
766,923
1, 166.625
2,626.652
394,940
9.116
475 054
116,879
40,553
6,917,427

21,331

822

22,153

228,699,486
373,189,274

20,645.427
26,933,022

249,344,913
400, 112,296

9,868
10,203
51,892
181,502
6,492
651,828
13,183
115,359
56,641
235.515
92 059
175,837
322,297
24,505

1,051
19,783
6,771
674

494,886
2,764.475
46,262
3,531,522
33,536,357
3,395,433
176,153
33,145
30,358
40,385
241,760
1,473,133

9,062
21,537
1,027
33,452
618,7r*5
52,209
2,268
159
1,239
3,800
7,777
17,734

1,903,710
488,677

45,745
3,274

6,825
3,347
1,987

721
9,560

3,555
4,275
1,505
21,934
34,000
4,323
31,716
1,801
153,339
13,414
71,871
20.287
28,595
23,506
18,244

14,284
55,729
23,325
776,475
26,329
1,717,417
1,716,173
210,520
3,689,213
310,769
4,455,234
2,999,919
18,100,456
531,244
3,200,836
3, 186,052
306,428
2,687
361,977
87,413
102,566
11,351,719
48,629
282,250
32,401
335,650,153
362,166,254

19, i 26
36,653
4,074
27,241
3,063
132 688
16,621
83,829
0,319
22.667
29,268
153,656
348
10,106
9,925
2,425
70,295

482,212
29,850
5.131
1,188
811.
3.579
12,679
2,444

9,100
8,366
675
46,614

34,752
957

27,135
134

5,028.917
5,921,285

4,889,313
6, 165,924

2,186
11,896
985
1,070
53,110
9,131
5, 1^8
976
1,121
504
3,103
8,337
14,172
1,253
902
250
338
440
2,256
2,987
2,473
5,509
414
1,143
1,298
22,173

494
1,201
13,667
713
288
26.529
1,772
1,493
476
2.820
2,241
2,474

320

1,058
6,331
5,197

4,056
2,469
7,170
356
2,091
728
2,312
278
654
2,718
3,041

209
1,625

365
544

5,655

1,511

2,217,554
2,853,911

2.262,042
2,624,026

353




260,204
68,780
184,743

40
5,257
3,633
1,046
794
3,430,995
94,275
10,090
3,943
125
6,971
182, H7b
51,799
26,000
71 773
55,013

Statistics o f Trade and. Commerce.

Total, 1861
“ 1860.

20,938
445.771
1,886,3 U
50,7.9
29,761
9,461,012
1,286,7S9
273,776
42,164
28,420
59,200
1,323,390
172,629

1862.]

YOL. XLYII

F ren ch Possessions in A frica ..................
Spain on the A tla n tic................................
Spain on the M editerranean...................
Canary Islands............................................
Philippine Islands.......................................
C u b a ...............................................................
P orto R ic o .....................................................
P ortu gal......................................................... .
*. M a d e ir a .........................................................
| Cape de Y e r d Islands................................
a Azores..............................................................
O S a rd in ia .........................................................
^ T uscany.......................................................... .
<5 Papal S t a t e s ..................................................
• T w o Sicilies....................................................
A ustria.............................................................
Austrian Possessions in Italy.................. .
Ion ian R ep u b lic.......................................... .
G reece..............................................................
T u rk ey in E u rop e........................................
T u rk ey in A s ia ..............................................
E g y p t...............................................................
Other ports in A frica ..................................
H a y ti...............................................................
£?San D om ingo..................................................
^ M e x i c o ............................................. ...........
Central R e p u b lic..........................................
N ew Granada................................................
V enezuela........................................................
Brazil
. ..................................................... .
U ruguay, or Cisplatine R e p u b lic............
Buenos A yres, or Argentine R ep u blic..
C h ili..................................................................
P eru ................................................................. .
E q u a d o r ..........................................................
Sandwich Islands..........................................
Other Islands in the P a cific ......................
Japan ...............................................................
China............................................... .................
Other ports in A s ia .......................................
W hale Fisheries............................................
U ncertain places............................................

*

Statistics o f Trade and Commerce.

354

[October,

PRODUCTION OF BREADSTUFFS,
In connection with the annual statement o f the export o f breadstuffs,
which will be found on page 355, the follow ing from the census report
will be o f considerable interest:

WHEAT, RYE, AND CORN PRODUCED IN THE UNITED STATES IN 1860.
Corn.
524,800
2,059,800
3,892,400
115,296,800
69,641,600
41,117,000
5,678,800
64,043,600
1,546,000
13,445,000
2,157,000
12,152,100
2,987,600
72,892,200
1,414,700
9,723,300
20,061,000
70,637,100
74,600
28,196,800
459,000
7,463,000
7,565,300

1,007,400

Rye.
51,000
618,700
27,200
981,300
400,200
176,000
3,900
1,055,300
128,300
509,000
388,000
494,200
124,300
293,300
128,300
1,390,500
4,787,000
656,100
2,700
5,474,800
28,300
131,000
888,500
11,200

139,816,500

18,803,100

549,786,700

States.
California.........bushels
Connecticut..................
Delaware......................
Illin ois..........................
Indiana........ .................
Iow a...............................
Kansas..........................
Kentucky......................
Maine............................
Maryland......................
Massachusetts...............
M ichigan......................
Minnesota.....................
Missouri........................
New Hampshire..........
New Jersey...................
New Y o r k ....................
Ohio...............................
O regon..........................
Pennsylvania...............
Rhode Island...............
Verm ont........................
W iscon sin ....................

Wheat.
3,946,600
52,400
913,000
24,159,500
15,209,100
8,433,200
168,500
7,394 800
233,900
6,103,500
119,800
8,313,200
2,195,800
4,227,600
269,000
1,763,100
8,681,100
14,532,600
822,400
13,045,200
1,100
431,100
15,812,600

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

Seceding States.

2,757,200

Rye.

Corn.

1,222,500
955,300
2,800
2,545,000
29,300
579,500
4,743,700
1,285,600
13,129,100
5,409,900
1,464,300

74.000
77J900
21,300
115,600
12,800
41,300
436,800
89,100
944,000
265,300
95,000

32,761,200
17,058,700
2,824,500
30,776,300
16,105,900
29,563,700
30,078,600
15,065,600
38,360,700
50,748,300
16,521,600

Seceding S tates............
Other S t a t e s .................

31,367,000
139,816,500

2,173,100
18,803,100

280,665,100
549,786,700

Total, 1860...........
Total, 1850...........

171,183,500
100,486,000

20,976,200
14,188,800

830,451,800
592,071,000

A la b a m a ........................
Arkansas.........................
F lorida............................
G eorgia...........................
Louisiana........................
M ississippi.....................
North.............
Carolina
South C a r o lin a ............
V irg in ia ..........................
Tennessee........................
T e x a s..............................




Wheat.

1862.]

Statistics o f Trade and Commerce.

355

The relative values o f these three products in the loyal and in the se­
ceding States may be represented as follow s:
W h eat at $ l 25.

E y e at 75 cents.

Corn at 50 cents.

Loyal States...................
Seceding States............

$174,770,000
39,209,000

$14,103,000
1,630,000

$274,893,000
140,332,000

Total, 1860...........
Total, 1850...........

$213,979,000
125,607,000

$15,733,000
10,641,600

$415,225,000
296,035,000

From this official return it would appear that New Y ork, which was
in 1 8 3 0 -4 0 one o f the leading wheat producing states, has now becom e
the seventh, and is about on a parallel with Michigan in the article o f
wheat.
The relative position o f this State as a wheat producer, since 1840, is
shown in the annexed summary o f all the States producing over five m il­
lion bushels e a c h :
W HEAT

P R O D U C IN G

ST A TE S,

4,569,700

1850.
9,414,600
6,214,400
4,286,100
14,487,300
11,212,600
15,367,700
13,120,500
4,925,800
1,530,500
2,142,800
4,494,600
17,200
1,619,400

1860.
24,159,500
15,219,100
15,812,600
14,532,600
13,129,100
13,045,200
8,681,100
8,313,200
8,433,200
7,294,800
6,103,500
5,946,600
5,409,900

Thirteen States.............
All o t h e r s .....................

74,804,900
13,708,300

88,834,500
11,651,300

146,180,400
25,003,100

Bushels o f wheat.........

88,513,200

100,485,800

171,183,500

Illinois.............. bushels
Indiana...........................
W iscon sin ......................
O hio.................................
V irginia..........................
Pennsylvania.................
New Y o r k .....................
Michigan.........................
Iow a.................................
K entucky........................
M aryland........................
California........................
Tennessee........................

1810.
3,335,400
4,049,400
212,100
16,57 l ,600
10,109,700
13,213,000
12,286,400
2,157,100
151,700
4,803,100
3,345,700

1 8 40 -186 0.

.EXPORT OF BREADSTUFFS FROM THE UNITED STATES, 1802,
W e give below the annual summary o f the exports o f breadstuffs from
the United States, prepared by Mr. E d w a r d B i l l . The statement for the
year 1861 will be found on page 484, vol.45, o f the Merchants' M agazine:
EXPORT

OF

B R E A D S T U F F S TO

F rom Septembor
F lo u r,
barrels.

F rom

New Y o r k . . . .
Philadelphia...
Baltimore____
B oston.............
Other p orts...

1,883,134
361,619
75.732
285,705
66,325




1

,

G R E A T B R IT A IN

1861, to September
Corn m eal,
barrels.

718
406
----------....

AND
1

,

IR E L A N D ,

1862.

W heat,
bushels.

Corn,
bushels.

21,268,961
2,386,599
468,772
38,850
1,591,527

12,635,762
735,566
656,724
49,516
6,600

356
EXPORT

Statistics o f Trade and Commerce.
O F B R E A D S TU FFS TO

G R E A T B R IT A IN

1861
2,672,215
2,561,661
717,156
106,457
1,295,430
849,600
1,641,265
175,209
1,846,920
1,600,449
1,427,442
1,559,584
574,757
1,137,556
182,583
3,155,845

Total, 16 years

21,504,429

TO TH E

FROM

CANADA

TO

1,124
4,416
944
58
143
685
6,816
4,768
41,726

R ye,
bushels.

1,680
5,620
6,411
82,900
108,534
844,188

25,754.709
25,553,370
4,938,714
439,010
6,555,643
7,479,401
7,956,406
324,427
6,038,003
4,823,519
2,728,442
1,496,354
461,276
1,140,194
241,300
4,000,359

14,084,168
11,705,034
2,221,857
342,013
3,317,802
4,746,278
6,731,161
6,679,138
6,049,371
1,425,278
1,487,398
2,205,601
4,753,358
12,685,260
4,390,226
17,157,659

1 , 1 1 0 ,1 1 2

99,931,137

99,981,602

100

NEW

YORK

W heat,
bushels.

AND

O TH ER P O R T S.

Corn,
bushels.

E ye,
bushels.

626,672
142,129
49,243
51,388
303,100
483,344
748,408
7,763

7,617,472
3,452,496
178,031
57,845
390,428
2,875,653
2,610,079
4,972

322,074
101,145
19,358
25,519
16,848
543,590
282,083
308,428

1,612,926
347,258

2,412,047

17,186,976

1,619,045

4,200,193

18 61 .
18 60 .
18 59 .
18 58 .
18 57 .
18 56 .
18 55 .
18 54 .
Total, 8 years.

Corn,
bushels.

W heat,
bushels.

C O N T IN E N T , F R O M
F lou r,
barrels.

1846

IR E L A N D F R O M

IN C L U S IV E .

Flour,
barrels.

1 8 6 1 ................
1 8 6 0 ................
1 8 5 9 ................
1 8 5 8 ................
1 8 5 7 ................
1 8 5 6 ................
1 8 5 5 ................
1 8 5 4 ................
1 8 5 3 .................
1 8 5 2 .................
1 8 5 1 ................
1 8 5 0 .................
1 8 4 9 ................
1 8 4 8 ................
1 8 4 7 .................
1 8 4 6 ................

AND

[October,

TO

G R E A T B R IT A IN

AND

IR E L A N D , V IA

ST . L A W R E N C E .

1 8 6 1 -1 8 6 1

1861-1861
F lo u r ................. bbls.
P e a s .................. bush.
W h e a t .........................

617,308
822,060
6,376,905

13,100
216,162
1,975,178
35,569

O ats.................... bush.
C o r n .............................
Oat m ea l...........bbls.

780,756
2,016,040
7,242

THE NEW MEXICO WOOL TRADE.
W e take the following from the Kansas City D aily Press o f August 29.
In days when wool, in our Eastern markets, appears to command whatever
price the seller sees fit to ask, such facts as these become doubly interest­
ing. On page 28, vol. 46, o f the Merchants' Magazine, in the article en­
titled “ Commerce o f the Prairies,” will be found some interesting statements
respecting this trad e:




1862.]

Statistics o f Trade and Commerce.

357

“ The extent of the trade in wool between this city and New Mexico is
much greater than is supposed even by our own citizens. W e have been
so accustomed to look upon the New Mexican as a mere shipping and
transfer business, that we hardly can realize the fact that the actual buying
and selling, the supplying of the Santa Fe merchants with merchandise and
manufactured articles of all kinds, is a branch of business, whose importance
and value is not exceeded by all the balance of the trade o f the city this
year.
“ It was formerly the case that the Mexican trains came in empty, the
merchants bringing nothing but gold to exchange for goods. Every train
comes in loaded with wool, hides, sheepskins, &c., &c., which are taken by
our merchants either on consignment, or are purchased by our dealers for
the eastern markets.
“ The most important article brought in from Santa F6 is wool, and the
quantity is increasing every year. W e have taken considerable trouble to
find out the exact amount received this year, and after personal conference
with the four firms of C. E. K earney, D. V. W hiting, W . H. Chick & Co.,
and J. S. C hick & Co., we have arrived at the following facts:
Received up to the present date........................................... lbs.
Amount to arrive as per bills of lading already received.. . .
Total number o f p o u n d s ........................................................

687,960

265,000
952,960

“ In 1857, which was considered the most prosperous year Kansas City
had ever experienced, the amount of wool received up to December 31st,
was 865,000 pounds, which was considered an immense amount. It must
be remembered, however, that at that time the wool trade was but just com­
menced, and although everything was favorable a comparatively small
amount was received.
“ W e are confident from all advices, that could our merchants have concientiously advised the shipping of the full amount of wool intended for
this market this year, the quantity would have exceeded three millions of
pounds.
“ This wool is derived from the immense droves of sheep which dot the
great plains of New Mexico, and is worth in this city from fifteen to twentyfive cents per pound, according to quality. It is forwarded to the Eastern
markets and sold at an advance o f twenty-five to fifty per cent.
“ This business is rapidly increasing, and should perfect peace be pre­
served on this border and on the road to New Mexico, our next years’ re­
ceipts will be at least double those of the present.”




358

[October,

The Cotton Question.

THE COTTON QUESTION.

1. The
4. R

Cotton

o yal

Crop

of

1859- 60. 2.

C o m m is s io n o n C o t t o n .

C otton

from

3. A

T r in id a d .

5 . A f r ic a a s a C o t t o n F ie l d .

S u b s t it u t e
6. C o tto n

for

Cotton.

C u l t iv a t io n

in

I n d ia .

THE COTTON CROP OF 1859-60.

W e have received the following communication which sufficiently ex­
plains itself:
M r. E d ito r : The discrepancy between the official return of the cotton
crop, as given in the preliminary report of the 8th census, just issued, and
the commercial statistics, is only apparent and is easily reconciled.
In 1850 the assistant marshals were instructed to ascertain the number
of bales produced of 400 pounds each, and for the purpose of compari­
son the same standard was used in 1860, notwithstanding the fact that
there was a gradual increase in the size of the bale. The average weight
for the last seven years has increased from 437 pounds to 458 pounds—
450 may therefore be considered a fair standard.

The product of 1860, 5,198,077 bales of 400 lbs. each, is 2,019,230,800 lbs.
Is equal to ................ 4,620,513
“ 450
“
The Shipping Gazette gives the crop o f that year as 4,675,770 bales,
or 55,257 more than the official returns; an excess of less than one-fourth
per centum.
The accuracy of the commercial statement is verified by the following
figures:
Pounds.

Consumed in cotton m ills............................
“
in woolen “ .............................

“

Bales.

464,035,125
16,008,625

in household manufactures and
in the arts................................

32,796,502

412,841,250
E xported...................................................................................

863,425
3,812,345

Crop o f 1 8 5 9 -6 0 ...................................................................

4,675,770

W ashing ton, D . C.

Yours, &c.

COTTON FROM TRINIDAD.

The British Monarch has arrived at Bristol, with
cotton grown in Trinidad. The importation is the
tive trial, the report on which is that cotton may be
and successfully in Trinidad. The parcel is stated to
has yet been received from the W est Indies.




a small quantity of
result of a specula­
cultivated profitably
be the cleanest that

1862.]

The Cotton Question.

359

A SUBSTITUTE FOR COTTON.
On the 28th o f August a communication was published in the London
Times from the legal firm of P hillips & S on, o f Abchurch Lane, London,
stating on behalf o f a client, that a material had been discovered as a sub­
stitute for American cotton, which possesses not only all the qualities of
that staple, but is capable o f being produced in any quantity and at a
small expense. Of course such an announcement was received with dis­
trust, and most persons o f full experience must continue to view the mat­
ter with the same feeling, until they have seen the article in question sub­
mitted to an actual working test. B ut in the Times o f September 8th,
we find the follow ing on the same subject, which leads us to feel that
possibly this discovery will not share the fate o f the multitude o f others
that in times o f emergency are suddenly broached, but which, when they
come to an actual working test, are found to break down in some essential
point, either o f quality, quantity, or price. The Times says “ that the
proper and prudent steps taken by the parties concerned, have already
elicited the subjoined expression o f opinion from a disinterested and com ­
petent source, which will at all events tend greatly to stimulate the inter­
est awakened and also the hope of some favorable result:

Sir : H aving been in the cotton trade all my life, though now retired
and only a looker on, but still taking great interest in all that concerns
it, I read Messrs. P hillips & Son’ s letter in your money article of this
day week, and your remarks.
I wrote to Messrs. P hillips the same evening, and have since had two
interviews with them and their client, in Liverpool.
I have seen the material proposed as a substitute for cotton in several
small specimens, and can speak to its color, length, and fineness being all
that can be desired.

The other quality necessary, viz.: strength, I can only speak of by
what was stated, that it is as strong, or stronger than cotton, that it can
be supplied in large quantity, and at a price as low or lower than the
average price of cotton, which I told them was about 6d. per pound.
I have stated simply what I have seen and heard.
And further, both Mr. P hillips and his friend are so straightforward,
and even modest in what they say and propose, as to a still more thorough
investigation of the subject, the profound gravity of which is apparent
to every one, that I write this in the hope to promote that object. I am,
most respectfully,
J ambs H ardy W rigley,
Late o f the firm o f J ohn W rigley & S ons, Liverpool.
September 3d.

“ A further communication on the subject has been received from
Messrs. P hillips & S on, in which they state the readiness o f their client
on certain moderate terms to make his invention public, so as to save the
trade of the country from the time that would be lost in the preliminaries
of a patent:
S i r : W e shall be glad if you will allow us to state that the insertion
of our letter respecting the supply of cotton, in the Times of the 28th




360

The Cotton Question.

[October,

of August, has been responded to by many gentlemen and eminent firms,
and otherwise attended with very gratifying results.
The material produced by our client has been submitted by him to the
inspection of Mr. J ames H ardy W rigley , of Southport, as one o f those
who responded and a competent authority on the subject, and, so far, the
expectations entertained of the article are completely confirmed.
To finally establish, however, its practical value, and render it available
in the promptest manner, our client has addressed to Mr. W rigley a
communication, o f which we send you the accompanying copy, in which
he engages to make his secret public property and states the conditions
on which he is prepared to do so.
Our client’s views and desires are sufficiently disinterested to make pecu­
niary reward a consideration of secondary importance under the circumstan­
ces, and hence we make no doubt the co-operation required will soon be se­
cured, and shall be glad to receive communications from those willing to
afford it in the way proposed.
Your very obedient servants,
P hillips & S on .
A bchttrch L ane, September 5th.
September , 1862.

Sir : Since your first letter was to hand I have received some very ad­
vantageous offers o f assistance from various parties, but it has occurred
to me that a considerable period must elapse before the completion of my
p,atent, and, consequently, before I should be able openly to manufacture
tbe raw material, the season would be rapidly passing away; neither
should I be able to produce a sufficient quantity for present purposes ; nor
could the granting o f licenses take effect for some time.
All this would be obviated if every manufacturer were able to pro­
cure the article without delay, and, as the present is no ordinary emer­
gency and requires no common sacrifice, I beg to state that I am willing
to make my invention public property upon certain conditions which are
herewith sent.
If the conditions are not deemed satisfactory, I am prepared to con­
sider any modification o f them.
You are at liberty to make this letter public, together with the condi­
tions, if you deem such a course desirable.
Being actively engaged in the city, I do not wish my name to be pub­
lished at the present time, as I should be inundated with letters and in­
quiries. All communications may be addressed to Messrs. P hillips & S on.
Your most obedient servant,
T he I nventor.
J. H. W rigley, Esq., Southport.
CONDITIONS.

1. That a committee o f not less than ten responsible gentlemen be
formed, who will guaranty to raise a sum of £ -------, and who will under­
take to use all reasonable means to procure a further sum by subscrip­
tion or otherwise to the inventor. The amount to be specially agreed
upon.
2. That on such committee being formed, and consenting to act, the




1862.]

The Cotton Question.

361

inventor will submit the cotton produced to such person or persons as
may be agreed upon, for the purpose o f being tested and analyzed.
3. That the inventor shall be present at all experiments made.
4. That the success shall be determined on the leport o f the person or
persons deputed to test and analyze that the product will answer all the
purposes o f cotton, or is better than cotton, and that an adequate and
immediate supply can be obtained.
5. The inventor reserves to him self all the patent rights for the exclu­
sive use, &c., o f the product, or the article or thing from which it is pro­
duced for other purposes than textile fabrics.
In the Times o f the 12th instant we find another article on this same
general subject o f substitutes for cotton, referring, however, not to the
discovery claimed above, but to a method o f treating ju te which will en­
able it to be spun on cotton machinery, <fcc. The writer sa ys:
“ Excitement continues to increase in the market for the various pro­
ducts to which attention has been turned. Owing to the scarcity o f cot­
ton and flax, hemp and jute have all experienced a further advance to-day.
In jute the improvement has lately been extraordinary, the present quota­
tion showing a rise o f £ 8 per ton, or more than 25 per cent upon that
current a week back. The movement appears to have been greatly ac­
celerated to-day by a statement that Messrs. T homson & Co., o f Deafield
works, Dundee, have introduced a m ethod for its treatment which will
enable it to be spun on cotton machinery, and, in fact, to fulfill in a great
degree the purposes o f that staple. A t the same time there are a num­
ber o f other people putting forth suggestions and claims, and a certain
kind o f Italian grass is spoken o f as a desirable product. Should jute,
however, prove really available to the extent anticipated by Messrs.
Thomson, it will be likely to take the lead o f all other articles owing to
the great abundance in which it can be obtained. A bout ten or fifteen
years ago it was scarcely known as an article o f commerce, but the quanity
now annually exported from India is thought to be 70,000 or 80,000 tons.
It comes principally from the eastern parts o f Bengal, and is very easy
to cultivate. The first purpose to which it was applied on a large scale
was the manufacture o f gunny bags, and subsequently it has been intro­
duced for the manufacture o f carpets, which have been used in consider­
able quantities in Am erica. A year would be required before a new crop
could be supplied, but it could then be furnished to meet any possible de­
mand.”
On the follow ing day the same writer says :

“ The number of applicants yesterday at the counting-house o f Messrs.
R obinson & F leming to inspect the samples of prepared jute under the
patent of T homson & Co., of Dundee, was very great. Those among
them who are woolen spinners are stated generally to have expressed a
decided opinion as to the value and adaptability o f the material for mix­
ing with woolen manufactures. The cotton spinners also seemed disposed
to consider that it will answer very well for mixing with cotton in the
manufacture of cloths, although not for use alone as an entire substitute
for cotton. It is stated that the quantity o f jute now afloat for London




362

The Cotton Question.

[October,

is 4,342 tons against 5,15*7 at the corresponding period o f last year.
And to Liverpool, 3,250 tons against 2,456, so that the aggregate is almost
exactly the same as at this period.
“ The rise on ju te since 3d instant, exceeds 50 per cent.”

ROYAL COMMISSION ON COTTON.
A t a meeting o f the directors of the Glasgow Chamber of Commerce

last week, the following memorial to Lord P almerston, on the subject o f
the royal commission upon cotton, was adopted :
“ That in consequence o f the blockade o f the Southern ports o f the
United States o f America, which has now existed for more than a year,
and the consequent obstruction o f the cotton supply, the prosperity o f
numerous populous districts o f this country, in which the manufacture o f
cotton is carried on, has been most seriously affected, and the distress and
suffering now existing in Lancashire and elsewhere is a source o f the
deepest anxiety and alarm. That from the determination shown by both
parties to the contest, there is reason to fear that the civil war in Am erica
may be continued for a very considerable period o f time, and even when
the war shall terminate it seems unreasonable to hope that the Southern
States can again, or at least until a considerable period shall have elapsed,
resume their supply o f cotton to anything like the extent o f their former
production. That the quantity o f cotton required for the consumption
o f Europe and the Eastern States o f Am erica is upwards o f 5,000,000 o f
bales annually, o f which the Southern States have been in use to supply
4,000,000 o f bales, and that consequently, without extraordinary efforts,
it is unreasonable to expect speedy or effectual relief in the unfortunate
crisis at which the cotton manufacture would seem to have arrived. That
various schemes have been suggested for procuring a supply o f cotton,
adequate in quantity, and adapted to the requirements o f British manu­
facture, from other portions o f the globe, as from India, Australia, the
W est Indies, Africa, &c., many o f which merit careful and impartial con­
sideration. That apart altogether from the existing state o f matters in
this country, which call so loudly for relief, the possible opening up o f a
great field o f production to our colonies and to our hom e trade offers a
most important subject for investigation. That while the schemes and
suggestions above referred to are numerous and important, the want of
some qualified and responsible party to consider and report as to their
practicability and comparative value is generally felt and expressed. That
the appointment o f a royal commission appears to the memorialists the
most effectual mode for having the whole question o f cotton supply— in
which the welfare and interests o f the country and its dependencies are
so intimately bound up— fully and impartially considered, and satis­
factorily dealt with. That such an appointment would further be attended
with most beneficial results, inasmuch as it would prove to those large
classes o f the community who are suffering under the existing depression
and stagnation o f trade, that the causes in which their sufferings have
originated were being carefully and authoritatively inquired into, and
that the talent and energies o f the country were being directed to their
alleviation and ultimate removal.”




1862.

The Cotton Question.

363

AFRICA AS A COTTON FIELD.

Lord R ussell has received the following dispatch from Dr. B aikie, in
command of the Niger expedition :
B ida , N usse, C entral A frica , February 26, 1862.
My L ord : I feel it to be my duty again respectfully to request your
lordship to call the attention of those in England interested in the supply
of cotton, to the peculiar eligibility o f this portion of Central Africa as
a future cotton field. Here there are no adverse interests, no speculative
political parties to interfere with our wishes, no monopolists nor capitalists
to raise prices. Three-fourths of the laboring population, whether free
or slave, are at liberty to have their own farms, and to sell the bulk of
their own crops. Thus, though the small farmer may himself be a slave,
the larger his crops the larger his profits, and in working hard he is not
laboring by mere task, or simply for the benefit o f his master, but for his
own immediate behoof; and thus, though a large part of the population
of Bond and of Nusse are slaves, the labor on the small farms is not
strictly “ slave labor.” It is from these small farms that most cotton
comes to the market, and it is these small farmers whom any demand
would stimulate. In Yoruba, more is produced by large traders, and there
it has caused an increased demand and price for slaves ; but here it would
have, if anything, an opposite result, as it would enable many of the pre­
sent serf population to effect their freedom. I have, in a former dispatch,
shown how superior Sudan is, as a field for cotton, to the regions explored
by Dr. L ivingstone, alike from the greater proximity and superior navi­
gability of the Niger to the Zambesi, as well as that here cotton is already
in abundance, and cultivated by a people able and willing to work, and
accustomed to its habits and rearing. Nothing further is required but
increased demand, and means to purchase, cleaning, and shipping; the
rest would speedily follow. I have, &c.,
(Signed,)
W m. B alfour B aikie .

COTTON CULTIVATION IN INDIA.

The European Times tells us that Mr. Money, of Java, had an interview
with the directors of the Manchester Chamber of Commerce on the 1st, to
offer his suggestions for the cultivation of cotton in India. Mr. M oney’ s
plan was simply to give the European cotton buyers power to counterbal­
ance the influence of the native money lender by making him government
receiver of the land tax, whilst the local European official’s interest might
be cultivated by giving him a per centage on the receivers’ operations. A
sub-committee was appointed to consider the suggestions. This Mr. Money
is the same gentleman who is now contributing to the London Economist
a series of interesting articles on the cotton supply question.




,

364

,

Railway Canal and Telegraph Statistics.

[October,

RAILWAY, CANAL, AND TELEGRAPH STATISTICS.

1.

R a il e o a d s
8.

T he

of th e

U n it e d

S tates — C ensus

A t l a n t ic T e l e g e a p h .

4. N ew

R epoet.

T elegbaph

2.

R a il e o a d s

in

F eance

in

1862.

L in e s .

RAILROADS OF THE UNITED STATES—CENSUS REPORT.

T he Census Report gives us a very clear and comprehensive view o f the
wonderful progress o f railroads in the United States during the decade
which terminated in I 8 6 0 :
A t its commencement the total extent in operation was 8,588.79 miles,
costing$296,260,128 ; at its close, 30,598.77 miles, costing $1,134,452,909 ;
the increase in mileage having been 22,004.08 miles, and in cost o f con­
struction $838,192,781.
W hile the increase in mileage was nearly 300 per cent, and the amount
invested still greater, the consequences that have resulted from these works
have been augmented in vastly greater ratio. U p to the commencement
o f the decade our railroads sustained only an unimportant relation to the
internal commerce o f the country. Nearly all the iines then in operation
were local or isolated works, and neither in extent nor design had begun
to be formed into that vast and connected system which, like a web, now
covers every portion o f our wide domain, enabling each work to contribute
to the traffic and value o f all, and supplying means o f locomotion and a
market, almost at his own door, for nearly every citizen o f the United
States.
Previous to the commencement o f the last decade only one line o f rail­
road had been completed between tide-water and the great interior bad ns
o f the country, the products o f which now perform so important a part in
our internal and foreign commerce. Even this line, formed by the several
links that now compose the New York Central road, was restricted in the
carriage o f freight except on the payment o f canal tolls, in addition to other
charges for transportation, which restriction amounted to a virtual prohibi­
tion. The commerce resulting from our railroads consequently has been,
with comparatively slight exceptions, a creation o f the last decade.
The line next opened, and connecting the Western system o f lakes and
rivers with tide water, was that extending from Boston to Ogdensburg, com­
posed o f distinct links, the last o f which was completed during 1850. The
third was the New York and Erie, which was opened on the 22d o f April,
1851. The fourth, in geographical order, was the Pennsylvania, which was
completed in 1852, although its mountain division was not opened till
1854. Previous to this lime its summit was overcome by a series o f in­
clined planes, with stationary engines, constructed by the State. The fifth
great line, the Baltimore and Ohio, was opened, in 1853, still further south.
The Tennessee River, a tributary of the Mississippi, was reached, in 1850,
by the Western and Atlantic Railroad o f Georgia, and the Mississippi itself,
by the Memphis and Charleston Railroad, in 1S59. In the extreme North
the Atlantic and St. Lawrence, now known as the Grand Trunk, was com­
pleted early in 1853. In 1858, the Virginia system was extended to a con-




Railway. Canal, and Teleoravh Statistics.

365

nection with the Memphis and Charleston and with the Nashville and
Chattanooga railroads.
The eight great works named, connecting the interior with the seaboard,
are the trunks or base lines upon which is erected the vast system that now
overspreads the whole country. They serve as outlets to the interior for its
products, which would have little or no commercial value without improved
highways, the cost o f transportation over which does not equal one-tenth
that over ordinary roads. The works named, assisted by the Erie Canal,
now afford ample means for the-expeditious and cheap transportation o f pro­
duce seeking eastern markets, and could, without being overtaxed, transport
the entire surplus products o f the interior.
Previous to 1850 by far the greater portion o f railroads constructed were
in the States bordering the Atlantic, and, as before remarked, were for the
most part isolated lines, whose limited traffics were altogether local. U p
to the date named, the internal commerce o f the country was conducted al­
most entirely through water lines, natural and artificial, and over ordinary
highways. The period o f the settlement of California marks really the
commencement of the new era in the physical progress o f the United States.
The vast quantities o f gold it produced imparted new life and activity to
every portion o f the Union, particularly the Western States, the people o f
which, at the commencement o f 1850, were thoroughly aroused as to the
value and importance o f railroads. Each presented great facilities for the
construction o f such works, which promised to be almost equally produc­
tive. Enterprises were undertaken and speedily executed, which have literally
converted them into a net-work o f lines, and secured their advantages to
almost every farmer and producer.
The only important line opened in the W est, previous to 1850, was the
one from Sandusky to Cincinnati, formed by the Mad River and Little
Miami roads. But these pioneer works were rude, unsubstantial structures
compared with the finished works o f the present day, and were employed
almost wholly in the transportation o f passengers. Within the decade, in
place o f this one line, railroads have been constructed radiating from lakes
Erie and Michigan, striking the Mississippi at ten and the Ohio at eight dif­
ferent points, and serve as trunk lines between the two great hydrographic
systems o f the W est. These trunk lines are cut every few miles by cross
lines, which, in the States east o f the Mississippi, are sufficiently numerous
to meet every public and private want, and to afford every needful encour­
agement to the development o f the resources o f this country.

The Southern States have been behind the Northern in their public en­
terprises, though, at the date of the census, they were prosecuting them
with great energy and vigor. The progress inland of the great trunk lines
of the South has been already noted. The opening of the Mobile and Ohio,
and of the Mississippi Central, which will soon take place, will give com­
pleteness to the system of the Southwestern States, and leave little to be
done to make it all that is wanted for that section of the country.
West of the Mississippi less has been done, for the reason that the settle­
ments there are of a more recent date, and the people less able to provide
the means for their construction than those of the older States. But even
upon our western frontier extensive systems have been undertaken and very
considerable progress made in their execution.
A more interesting subject than the progress of our public works would
he their results, as shown in the increased commerce and wealth of the




Railway, Canal, and Telegraph Statistics.

366
country.

[October,

But such inquiries do not come within the scope o f this report.

It is well ascertained, however, that our railroads transport in the aggregate
at least 850 tons of merchandise per annum to the mile o f road in opera­
tion. Such a rate would give 26,000,000 tons as the total annual tonnage
o f railroads for the whole country. If we estimate the value o f this ton­
nage at §150 per ton, the aggregate value o f the whole would be
§3,900,000,000. Vast as this commerce is, more than three-quarters of it
has been created since 1850.

To illustrate the correctness of the estimate made, the following state­
ment is added of the tonnage transported by the railroads o f the State of
New York for 1860, with the estimated value of the same. The classifica­
tions are made by the companies :
K inds o f freight.

Products of the forest.........
Products of animals............
Vegetable food ....................
Other agricultural products
Manufactures........................
Merchandise........................
Other articles.......................
T o t a l............................

Tons carried. Value per ton.

Total value.

3 7 3 ,4 2 4

$20

$ 7 ,4 6 8 ,4 8 0

8 9 5 ,5 1 9

200

1 7 9 ,1 0 3 ,8 0 0

1 ,1 0 3 ,6 4 0

50

5 5 ,1 8 2 ,0 0 0

1 4 3 ,2 1 9

15

2 ,1 4 8 ,0 5 5

5 1 1 ,9 1 6

250

1 2 7 ,9 7 9 ,0 0 0

7 8 3 ,8 1 1

500

3 9 1 ,9 0 5 ,5 0 0

9 3 0 ,2 4 4

10

9 ,3 0 2 ,4 4 0

4 ,7 4 1 ,7 7 3

$163

$ 7 7 3 ,0 8 9 ,2 7 5

If we make a deduction of one-quarter for duplications— a portion of the
tonnage passing over more than one road— the aggregate would be 3,556,330
tons, having a value o f $579,681,790.
The railroads of Massachusetts transported, for the same year, 4,094,369
tons; or, making the deductions for duplications, 3,070,027 tons, and hav­
ing a value of $500,524,201. The number of miles of railroad employed
in the transportation of freight being 2,569 in the State of New York, and
1,317 in the State of Massachusetts, with the deductions named, the amount
of freight transported in these States average 1,700 tons per mile. W e

have estimated the tonnage of all the railroads of the United States to
average one-half the amount of the roads in these States. That this is not
an overestimate is shown by the following statement of the tonnage of
several interior lines:
Cleveland, Columbus, and Cincinnati
Little Miami..........................................
Cleveland and T o le d o ........................
Michigan Central.................................
Michigan Southern...............................
Illinois Central.....................................
Chicago, Burlington, and Q u in cy.. .
Chicago and Rock Island....................
Galena and Chicago............................
Total..............................................

Length o f miles.
141

Tons
transported.
2 9 5 ,8 3 5

120

3 4 3 ,9 6 1

147

2 5 0 ,4 8 3

282

37 8 ,5 7 0

525

3 9 8 ,6 7 9

700

4 9 6 ,3 9 0

310

5 3 8 ,6 7 0

228

3 0 1 ,6 6 8

259

3 8 1 ,1 8 8

2 ,7 1 2

3 ,3 8 6 ,3 9 3

The following tables give the length, cost, &c., o f the railroads in the
United States in 1850 and 1860 :




1862.]
TA BL E

367

Hailway, Canal, and Telegraph Statistics.
S H O W IN G

TH E

LENG TH ,

CO ST,

U N ITED

E T C.,

OF

TH E

R A IL R O A D S

OF

TH E

STATE S.

,------- Cost o f construction, & c.--------v

,------------ Mileage.-

M aine.................
New Hampshire..
Vermont.............
Massachusetts ..
Rhode Island.. .
Connecticut........

18$0,
245.59
465.32
279.57
1,035:74
68 00
413.26

18C0.
472.17
656.59
556.75
1,272.96
107.92
603.00

I860.
$6,999, 894
14,774,133
10,800,901
47,886,905
2,802,594
13,989,774

1^60.
$16,576,385
23,268,659
23,336,215
58,882,328
4,318,827
21,984,100

New England..

2,507.48

3,669 39

$97,254,201

$148,366,514

New York..........
New Jersey . . . .
Pennsylvania... .
Delaware............
Maryland............

1,403.10
205.93
822.34
39.19
253.40

2,701.84
559.90
2,542.49
136.69
380.30

$65,456,123
9,348,495
41,683,054
2,281,690
11,580,808

$131,320,542
28,997,033
143,471,710
4,351,789
21,387,157

Mid. Atlantic .

2,723.96

6,321.22

$130,350,170

$329,528,231

Virginia .............
North Carolinia.
South Carolina..
Georgia...............
Florida...............

515.15
248.50
289.00
643.72
21.00

1,771.16
889.42
987.97
1,404.22
401.50

$12,585,312
3,281,623
7,525,981
13,272,540

210,000

$64,958,807
16,709,793
22,385,287
29,057,742
8,628,000

So. A tlantic...

1,717.37

5,454.27

$36,875,456

$141,739,629

Alabama.............
Mississippi..........
Louisiana...........
Texas..................

132.50
75.00
79.50
—

743.16
872.30
334.75
306.00

$1,946,209

$17,591,188
24,100,009
12,020,204
11,232,345

G u lf...............

287.00

2,256.21

$5,286,209

$64,943,746

Arkansas...........
Tennessee...........
Kentucky...........

••••
78.21

38.50
1,197.92
569.93

1,830,541

$1,155,000
29,537,722
19,068,477

Int., S outh... .

78.21

1,806.35

$1,830,541

$49,761,199

Ohio....................
Indiana...............

575.27
228.00
342.00
110.50

2,999.45
2,125.90
799.30
2,867.90
922.61
679.77
817.45

$10,684,400
3,380,533
8,945,749
1,440,507
612,382

$111,896,351
70,295,148
31,012,399
104,944,561
33,555,606
19,494,633
42,342,812

11,212.38
70.05
3.80

$25,063,571

$413,541,510

Micliitran.............

Illinois.................
Wisconsin..........
Iowa...................
Missouri.............
Int., N orth. . .
California...........
Oregon...............
P acific...........




20.00

....

1,275.77

73.85

2,020,000
1,320,000

$3,600,000
80,000
3,680,000

R ailw ay , Canal, and Telegraph Statistics.

368

[October,

C IT Y P A SSE N G E R R A IL R O A D S .
Length.
M iles.

Cities.

Boston, Massachusetts...............
New Y o r k .............
Brooklyn, New Y o rk ...............
Iloboken, New Jersey...............
Cincinnati, O h io .. .
St. Louis, Missouri .
Philadelphia, Pennsylvania . . .
Total...............

Cost o f
roads, &c.

67.39
61.79
79.92
1.79
17.38
26.30
148.00

2,964,875
5,002,835
2,071,678
32,000
403,163
570,590
3,811,700

402.57

14,862,840

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

New England ..
Middle Atlantic.
Southern Atlantic
G u lf....................
Interior, S ou th ..
Interior, North...
T o t a l.............

2,507.48
2,723.96
1,717.37
287.00
78.21
1,275.77

3,669.39
6,321.22
5,454.27
2,256.21
1,806.35
11,212.38
73.85

8,589.79

30,793.67

$296,660,148 $1,151,560,829

402.57

$14,862,840

City railroads...

$97,254,201
130,350,170
36,875,456
5,286,209
1,830,541
25,063,571

31,196^

$148,366,514
329,528,231
141,739,629
64,943,746
49,761,199
413,541,510
3,680,000

*1,166,422,729

RAILROADS IN FRANCE IN 1862.
The customary half-yearly returns o f French railways has just been pub­
lished.
It shows that on the 30th June o f the present year, the total
length o f railway worked was 10,460 kilometres, or 6,537 English miles,
and that on the corresponding date o f last year the length was only 9,566
kilometres, or 5,915 miles. It shows also that the total receipts o f the
first six months o f the present year were 221,620,660f, which make
$44,324,130, and that those o f the corresponding period o f 1861 were
210,567,546f, or $42,113,510.

The following statement we take from the published returns, simply re­
ducing the kilometres to miles and the francs to dollars. The term “ Old
network” means the old original concessions, and “ New network” signifies
new lines or embranchments and prolongations of old ones. The distinc­
tion is made, because on the new network the government guarantees a
certain interest.
i——
Miles.

Jtins 30, 1862.— —------,
E eceipts.

Old network..............
New network............

4,377
2,160

$37,413,955
5,910,175

T ota l......................

6,537

$44,324,130

/-----— —
Junc 30, 1861.
Miles.

4,365
1,550
5,915

i

Receipts.

$36,608,645
5,504,865
$12,113,510 *

* We doubt not that this sum is considerably too small for the aggregate cost of
our roads, for the reason that the leading roads in furnishing and perfecting their works
have expended large sums out of their earnings which have not gone to capital stock
or bonded debt. We know of one road which has thus expended near $2,000,000.




1862.]

Railway, Canal, and Telegraph Statistics.

369

THE ATLANTIC TELEGRAPH.

Intelligence may be expected at any moment from the British steamer
■which was dispatched from St. John some months ago to take a new line
of soundings along the coast of Newfoundland, and half way across the
ocean, where she was to meet another British steamer (the Porcupine)
which had been assigned to a similar duty along the Irish coast and the
other half of the Great Atlantic Cable route.
The Admiralty having or­
dered each steamer to return to her starting point, the results of the explo­
ration of the western half will be first reported from St. John. The object
of the new survey is to find the best places for the shore cable, and to
ascertain, if possible, a still better range of soundings for the main line than
the one determined on at the first survey.
The Porcupine, we learn, has already returned to Plymouth, and the
Liverpool M ercury gives the following as the result of its labors:
“ Some of the soundings extended to a depth o f 2,500 fathoms. The
visit of the steamer to Rockall, on the 14th of August, seems to have been
prompted by a desire on the part o f the Lords o f the Admiralty to be able
to judge, by a knowledge o f its depth and character, of the expediency of
dropping a cable across this bank, for the purpose o f connecting Ireland
with Iceland and America. On the ridge o f the banks, soundings varied
from 90 to 160 fathoms; fish were most abundant; the bottom consisted
of mud and sand.
The diagrams, returns, and reports from the officers
engaged on board the Porcupine have been sent to Whitehall for the con­
sideration in the first place of the Lords o f the Admiralty, after which com ­
munication will be made by their lordships to the directors o f the Atlantic
Telegraph Company.

NEW TELEGRAPH LINES.
R u s s i a . — Accounts from St. Petersburg state that at the end o f August
there were in Russia 33,104 versts o f electric telegraph (24,000 miles.)
The number o f stations was 150.
A n additional length o f 10,335 versts
is in course or being established.

N ew Y ork and L ondon .— In July last communication by electric tele­
graph could be made between London and Tumen, in Siberia, 4,039 miles
distance. It is expected that the wires will be extended to Nikolaivski, on
the Pacific, by the end o f this year, and that there will be telegraphic com­
munication with New York, via Siberia and California, by the end of 1863.
S w it zer l a n d a n d B a v a r ia .— The cable intended to establish a direct
telegraphic communication between Bavaria and Switzerland, was sub­
merged on the 4th inst.
The total length is 70,000 feet, and its weight
280 quintals. According to the soundings which have been made, the
greatest depth o f the Lake o f Constance, where the cable will be placed,
is 300 feet.
V O L . X L V I I .-----N O . I I I .




24

Journal o f Insurance.

370

JOURNAL
1. M a r in e

L osses f o e

J oey

a n d

OF

A ugust.

[October,

INSURANCE.

2. I n su ran ce

C o m p a n ie s — W a r

T axes.

MARINE LOSSES FOR JULY AND AUGUST.

I n the August number of Merchants' Magazine we gave a list o f the
marine losses for the six months ending with June last: we now publish
the losses for July and August. These statements include only the value
of property totally lost.
LO SSES F O R JU LY .
N am e.

Captain.

Ship Mary Merrill. . . . .Taylor
Marengo............. . Doughtv
Sea K ing........... . Cauldfield
Kearsage.............. Sawyer
Jos. Howe, (Br) a*Slater
Sirnode............... .Smith
Bark Reindeer, a & b. . Hewett
Gladiola, a ......... . Davis
Lebanon, (Br) a. . Reid
Sooleo, b .............. . Hames
Philom ela..........
Brig Rravo,o............... . Muson
Globe, (Br) a . . . .
Orinoco................ . Wash
Reindeer, (Br) a. . Balman
Schr Marie Flora,(Br)m, . Bernier
Emeline, b ............ . Dennison
Enterprise, a . . . . ...........
Udora, / .............
Sloop Alice, s c ............ .............
Total losses for July, 20 vessels.

From .

F o r.

Y alue.

Welling’n N. Z.
Huelva
Liverpool
Melbourne Anjier
Havana
New York
Eastport
Liverpool
Melbourne Calcutta
New York
Cette
Hong Kong
New York
New York
Belfast, J,
Macao
Ningpo
Siam Gulf
Sourabaya
Dunkirk
New York
Jersey
Boston
Boston
Minatitlan
St. Jago
New York
....
Boston
New Orleans
New York
Boston
New Orleans
L. Ponch’in New Orleans
Brookhaven
A m ou n t..,

............................. s

$18,000
25,000
70,000
30,000
31,000
25,000
20,000
40,000
50,000
18,000
25,000
35,000
15,000
9,000
30,000
15,000
45,000
42,000
3,500
1,000
$536,500

LOSSES F O R AU G U ST.
N am e.

Captain.

From .

S. Francisco
Str Golden Gate, b . . . . . . Ilud.on
Union Star, bVn up., .Bealchen S. Francisco
Shanghae
Cortes, b ................. . . Dali
Southerner, s c . . . .
N. Orleans
New York
West Point, s c . . . ......................
Akyab
Ship Mary Pleasants.. . Dixon
Bark Mansfield, (Br) m . Netheway New York
H’y Gillispie, ( B r ) /. Smith
Marseilles
Colooney, a ............. McCresy New York
Escorisza..................Ryder
Queenstown
Brunette..................Havlin
Havana
H. A. Rawlins, a ..............
S. Francisco
Brig Avon, (B r).............. Ilopkirk New York
Hobart, a ................ Jordan
Scilly

For.

Panama
....
Hankow
the coast
Potomac
Falmouth
Llanlley
New York
Sligo
Havana
New York
Colorado R
Cardenas
Eastport

Value.

$1,500,000
30,000
80,000
18,000
50,000
40.000
50.000
60.000

20,000
14.000
33.000

210,000
15.000
3,500

* Vessels marked a are abandoned at sea ; those marked m , missing, supposed lost ;
those marked b, burned; those s c , sunk after collision, and those marked f , foundered.




Journal o f Insurance.

1862.]

Captain.

Name.

Brig Jacob Dock, a . . . . . Swendson
K ing Brothers,(Br) . Larraway
Schr Louisa Reeves, a. . . , , , ,
V ictor....................... . Sears
Ellen, (Br) s c . . . . , . Pettan
J. B. Dickinson, a. . Stellman
Zulette......................
Sloop A lice........................ . Davis
Star, b .....................
B ride.......................

371

From .

Value.

For.

iNew York (Jienfuegos
P.au Prince New York
New York
Sandy H ook
Quincy
New York Nassau
Phil’d’ lphia E. Cambridge
Ellsworth
Boston
Elizabethp’ t Norwich, Ct
Mills’nPt.Ct Newport
Falmouth
—
Vessels.

50,000
9,000
1,800
3,000
5,000
3,300
1,000
1,000
800
600
Am ount.

Total losses for the six months ending with June .. . .
“
“
July. . .
“
“ August.

319
20

§8,816,400
536,500
2,199,000

Total for eight months
Same period last year.

363
307

§11,551,900
9,990,230

...
, . .

INSURANCE COMPANIES—WAR TAXES.
The correspondent o f the Boston P ost says :
An attempt is making to effect a harmonious combination o f fire under
writers, throughout the North, with respect to the war taxes levied in the
recent act o f Congress upon insurance companies. On the 12th and 13th
of August a convention was held in this city to discuss the subject. It ap­
pears that the new tax bill treads on the toes o f fire underwriters in eight
different places, and it was the unanimous conviction o f the delegates to the
convention that the burden should be borne by the assured and not by the
companies. Although a slightly extra-judicial proceeding the convention
also passed the following resolution : “ Resolved, That the rates now paid
for fire insurance in the United States are not on the average sufficient to
preserve the companies in a sound condition, and enable them to pay a fair
profit to their stockholders. The newly imposed taxes will, if the com ­
panies bear them, act as the final feather which the camel objected to carry­
ing. Although small in themselves, they form in the aggregate a heavier
load than some o f the companies can safely undertake to bear. Here are
the several items o f taxes applicable to the insurance interest: On dividends
declared, or surplus accumulations, three per cent; on gross receipts o f pre­
miums, quarterly, one per c e n t; stamp tax on appraisement o f value or
damage, five cents; bank checks for any sum over §20, two cents; certifi­
cates o f stock, twenty-five cents; every policy or renewal, twenty-five cents ;
power o f attorney for sale or transfer o f stock, twenty-five cents; proxy,
ten cents. It is confidently stated that these taxes were laid by the com ­
mittees of Congress with the express expectation that they were to be col­
lected by the companies from their customers. It is therefore considered
a simple matter of justice that the assured, who in these degenerate days
secure indemnity against fire at rates which would be ridiculous were they
not ruinous, should cheerfully pay these little assessments, and thus add to
their own security by relieving the companies from a weight which, in the
aggregate, is o f magnificent proportions.




372

Statistics o f Population.

[October,

STATISTICS OF POPULATION.
1 . P o p u l a t io n
P o p u l a t io n

op
to

th e
t h e

U n it e d
Suburbs

States
of

a c c o r d in g

L ondon

a n d

to

t h e

E ig h t h

C en su s.

2.

T he

F low

of

L iv e r p o o l .

POPULATION OF THE UNITED STATES ACCORDING TO THE EIGHTH CEN­
SUS (I860.)*

The following we have taken from Superintendent K ennedy’ s wellarranged report of the eighth census :
TA B L E S H O W IN G TH E PO P U L A T IO N O F TH E STATES A N D T E R R IT O R IE S .
States.

Alabam a.........................
Arkansas.........................
California........................
Connecticut.....................
Delaware.........................
Florida.............................
G eorgia............................
Illinois.............................
Indiana............................
Iow a.................................
K ansas.............................
K entucky.........................
Louisiana.........................
M aine...............................
M aryland.........................
Massachusetts.................
M ichigan.........................
Minnesota........................
Mississippi.......................
Missouri...........................
New Ham pshire...........
New Jersey....................
New Y o rk ......................
North Carolina.............
O h io .................................
O r e g o n ...........................
Pennsylvania..................
Rhode Island.................
South Carolina...............
Tennessee........................
Texas...............................
V erm ont..........................
V irgin ia...........................
W iscon sin .......................

W h ite.

F re e
colored.

Slave.

Total,

526,431
324,191

2,690
144

435,080
111,115

361,353
451,520
90,589
77,748
591,588
1,704,323
1,339,000
673,844
106,579
919,517
357,629
626,952
515,918
1,221,464
742,314
173,596
353,901
1,063,509
325,579
646,699
3,831,730
631,100
2,302,838
52,337
2,849,266
170,668
291,388
826,782
421,294
314,389
1,047,411
774,710

4,086
8.627
19,829
932
3,500
7.628
11,428
1,104
625
10,684
18,647
1,327
83,942
9,602
6,799
259
773
3,572
494
25,318
49,005
30,463
36,664
128
56,849
3,952
9,914
7,300
355
709
58,042
1,171

26,708,157

476,562

1,798
61,745
462,198

2
225,483
331,726
87,189

436,631
114,931
18
331,059

402,406
275,719
182,566
490,865

3,950,531

964,201
435,450
[14,555
305,439
460,147
112,216
140,425
1,057,286
1,711,951
1,350,428
674,948
107,206
1,155,684
708,002
628,279
687,049
1,231,066
749,113
173,855
791,305
1,182,012
326,073
672,035
3,880,735
992,622
2,339,502
52,465
2,906,115
174,620
703,708
1,109,801
604,215
315,098
1,596,318
775,881
31,149,805

* F or statem ent o f the population o f each State and T erritory, decennially, com m en cing 1790 to
1850, inclusive, see M e r c h a n t s ' M a g a z i n e , vol. x xvi., page 129.
f Indians.




Statistics o f Population.

1862]
Territories.

Free colored.

White.

Nebraska......................

U tah
..............................
W ashington................ ..
District o f Colum bia..,

S H O W IN G

T E R R IT O R IE S

TH E

46

2,576
28,759
6 812

67
45

82,924
40,214

85
30

29

11,138
60,764

30
11,131

3,185

34,277
*2,261
2,576
28 841
6,857
*10,507
83,009
40,273
*426
11,168
75,080

3,953,760

31,445,080

N U M B ER

OF

A T E A C H CENSUS

NUM BER OF W H IT E S ,

FR EE

Total.

Slave.

34,231

26,975,575
TA B L E

373

487,996

TH E

FROM

15

IN H A B IT A N T S

1790

C O LO R E D ,

AND

TO

1860,

O F THE

STATES

AND

IN C L U SIV E , A N D TH E

S L A V E S , R E S P E C T IV E L Y ,

DUR­

IN G TH E SE V E R A L D E C E N N IA L TERM S A N D F O R TH E W H O L E P E R IO D .

Aggregate population.

1790.

1800.

Total population................
3,929,827
W hite p o p u la tio n ..........
3,172,464
Free colored population.
59,466
Free population.................
3,231,930
Slave population.............
697,897
757,363
Colored population.........
Aggregate population

1880.

STATE S

1810.

1820.

7,239,814 9,638,131
5,862,004
7,861,937
186,446
233,524
6,048,450 8.095,461
1,191,364 1,538,038
1,377,810 1,771,562

1810.

Total population............. 12,866,020
W h ite population........... 10,537,378
Free colored population.
319,599
Free population.............. 10,856,977
Slave population.............
2,009,043
Colored population.........
2,238,642
IN D IA N P O P U L A T IO N IN TH E

5,305,925
4,304,489
108,395
4,412,884
893,041
1,001,436

1850.

1860.

17,069,453 23,191,876 31,445,089
14,195,695 19,553,114 26,975,575
386,303
434,449
488,005
14,581,998 19,987,563 27,463,580
2,487,455 3,204,313
3,053,760
2,873,758 3,638,762
4,441,765

AND

TERRITORIES

N OT EN U M ERATED IN

THE CENSUS AN D RE TA IN IN G! TH E IR T R IB A L C H A R A C T E R .

W est o f Arkansas. . . . . .
California........................ . .
Georgia...........................
Indiana...........................
Kansas............................
M ichigan.........................
Minnesota....................... . . .
New Y o r k ......................
North Carolina.............
O regon............................




65,6801
13,540
377
384
8,189

181
Tennessee..............................
W isconsin.............................
2,833
Colorado Territory...............
6,000
Dakota Territory................
39,664
Nebraska Territory.............
5,072
7 ,7 7 7 Navada Territory................
7,550
17,900 New M exico..........................
55,100
900
20,000
3,785 Washington T erritory.. . .
31,000
1,499
294,431
7,000

* Indians.

374

Statistici o f Population.

[October,

R e c a p it u l a t io n .

Total population of the States and Territories.........................
W hite population o f Indian Territory west of Arkansas. . . .
Free colored population o f Indian Territory west o f Arkansas.
Slave population of Indian Territory west o f Arkansas..........
Population o f Indian tribes............................................................
Total population in 1 8 6 0 ......................................................

31,445,089
1,988
404
7,369
294,431
31,749,281

In comparing the gain o f any class o f the population, or of the whole o f
it, one decade with another, the rate per cent, is not a full test o f advance­
ment. The rate o f gain necessarily diminishes with the density o f popu­
lation, while the absolute increase continues unabated.
It will be seen
from the above tables that the actual increase o f the entire free and slave
population from 1850 to 1860, omitting the Indian tribes, was 8,225.464,
and the rate per cent is set down at 35.46 ; while from 1840 to 1850 the
positive increment o f all classes was 6,122,423, yet the ratio o f gain was
35.87 per cent.
The two decades from 1800 to 1810, and from 1840 to
1850, were marked by the great historical facts of the annexation o f L ou ­
isiana, and the acquisition of Texas, New Mexico, and California. Each o f
these regions contributed considerably to the population o f the country, and
we accordingly find that during those terms there was a ratio o f increase in
the whole body o f the people greater by a small fraction than shown by
the table annexed for the decade preceding the Eighth Census. The pre­
ponderance o f gam, however, for that decennial term above all the others
since 1790, is signally large. N o more striking evidence can be given o f
the rapid advancement o f our counter in the first element o f national
progress than that the increase o f its inhabitants during the last ten years
is greater by more than 1,000,000 of souls than the whole population in
1810, and nearly as great as the entire number o f people in 1820.
Thus far in our history no State has declined in population. Vermont
has remained nearly stationary, and is saved from a positive loss o f inhabi­
tants by only one-third o f one per cent.
New Hampshire, likewise, has
gained but slowly, her increment being only 8,097, or two and one-half
per cent on that o f 1850. Maine has made the satisfactory increase o f
45,110, or 7.74 per cent. The old agricultural States may be said to be
filled up, so far as regards the resources adapted to a rural population in
the present condition o f agricultural science:
The conditions o f their in­
crease undergo a change upon the general occupation and allotment of
their areas.
Manufactures and commerce, then, come in to supply the
means o f subsistence to an excess of inhabitants beyond what the ordinary
cultivation o f the soil can sustain. This pioint in the progress o f population
has been reached, and, perhaps, passed in most, if not all, o f the New
England States. But while statistical science may demonstrate within nar­
row limits the number o f persons who may extract a subsistence from each
square mile of arable land, it cannot compute with any reasonable approach
to certainty the additional population, resident on the same soil, which may
obtain its living by the thousand branches o f artificial industry which the
demands o f society and civilization have created. This is forcibly illustrated
by the returns relative to the three other New England States— Massachu­
setts, Rhode Island, and Connecticut— which contain 13,780 square miles.
The following table shows their population in 1850 and 1860, and its
density at each period.




1862.]

r
States.

Massachusetts.......... ____
Connecticut............. ........
Rhode Island........... ____

375

Statistics o f Population.

1850.

— > r-

18 60.

Population.

Inhabitants to
square mile.

Population.

994,514
370,792
147,545

127.49
79.33
112.92

1,231,066
460,147
174,620

1,412,851

to

Inhabitants
square m ile.

17^
98.42
133.63
is

1,865,838

The aggregate territorial extent of Maine, New Hampshire, and Vermont,
is 48,336 square miles; the number of their inhabitants 1,269,450, or
26.26 to the square mile. The stated point of density was passed by the
three States named in the table more than fifty years ago, and yet they
go on increasing in population with a rapidity as great as at any former
period in their history.
South Carolina has gained during the decade 35,201 inhabitants of all
conditions, equal to 5.27 per cent. Of this increase 16,825 are whites, and
the remainder free colored and slaves.
It is perhaps a little remarkable
that the relative increase of the free colored class in this State was more
considerable than that of any other.
As their number, 9,914, is so small
as to excite neither apprehension or jealousy among the white race, the in­
crease is probably due both to manumission and natural causes. This
State has made slower progress during the last term than any other in the
south, having advanced only from 27.28 to 28.72 inhabitants to the square
mile.
Tennessee, it will be observed, has made but the moderate gain of 10.68
per cent for all classes. Of this aggregate increase the whites have gained
at the rate of 9.24 per cent upon 1850, the free colored 13.67, and slaves
15.14.

The next lowest in the rate of increase in the list of Southern States is
Virginia, whose gain upon her aggregate population, in 1850, was 174,657,
equal to 12.29 percent.
The white class gained 152,611, or 17.06 per
cent, the slaves 18,337, or 3.88 per cent.
These are examples of the States wherein the population has advanced
with slowest progress the past ten years.
Turning now to the States
which have made the most rapid advance, we find that New York has in­
creased from 3,097,394 to 3,880,735, exhibiting an augmentation o f
783,341 inhabitants, being at the rate of 25.29 per cent. The free colored
population has fallen off 64 since 1850.
The gain in Pennsylvania has been in round numbers 595,000. In that
State the free colored have increased about 3,000.
The greater mildness
of the climate and a milder type of the prejudices connected with this class
of population, the result of benevolent influences and its proximity to the
slavtholding States, may account for the fact that this race holds its own
in Pennsylvania, while undergoing a diminution in the State next adjoin­
ing on the north.
Minnesota was chiefly unsettled territory at the date of the Seventh Cen­
sus ; its large present population, as shown by the returns, is therefore
nearly clear gain.
The vast region o f Texas ten years since was comparatively awil derness.
It has now a population o f over 600,000, and the rate o f its increase is
given as 184 per cent.

Illinois presents the most wonderful example o f great, continuous, and




376

Statistics o f Population.

[October,

healthful increase.
In 1830 Illinois contained 157,445 inhabitants; in
1840, 476,183 ; in 1850, 851,470 ; in 1 8 60 ,1 ,7 11 ,9 51 .
The gain dur­
ing the last decade was therefore, 860,481, or 101.06 per cent. So large a
population, more than doubling itself in ten years, by the regular course o f
settlement and natural increase, is without a parallel. The condition to
which Illinois has attained under the progress o f the last thirty years is a
monument of the blessings of industry, enterprise, peace, and free institu­
tions.
The growth of Indiana in population, though less extraordinary than that
of her neighboring State, has been most satisfactory, her gain during the
decade having been 362,000, or more than thirty-six per cent upon her
number in 1850.
Michigan, Wisconsin, and Iowa have participated to the full extent in
the surprising development of the northwest. The remarkable healthful­
ness of the climate of that region seems to more than compensate for its
rigors, and the fertility of the new soil leads men eagerly to contend with,
and overcome the harshness of the elements.
The energies thus called
into action have, in a few years, made the States of the northwest the
granary of Europe, and that section of our Union which, within the recol­
lection of living men, was a wilderness, is now the chief source of supply
in seasons of scarcity for the suffering millions of another continent.
Looking cursorily over the returns, it appears that the fifteen slavehold­
ing States contain 12,240,000 inhabitants, o f whom 8,039,000 are whites,
251,000 free colored persons, and 3,950,000 are slaves. The actual gain
o f the whole population in those States from 1850 to 1860, was 2,627,000,
equal to 27.33 per cent.
The slaves advanced in numbers 749,931, or
23.44 per cent. This does not include the slaves o f the District o f Colum­
bia, who decreased 502 in the course o f the ten years. The nineteen free
States and seven Territories, together with the federal District, contained,
according to the Eighth Census, 19,201,546 persons, including 27,749 In­
dians; o f whom 18,936,579 were white, and 237,218 free colored. The
increase of both classes was 5,598,603, or 41.24 per cent. N o more satis­
factory indication o f the advancing prosperity o f the country could be de­
sired than this general and remarkable progress in population. North and
south we find instances o f unprecedented gains, as in the case o f Illinois,
just adverted to. In the southwest the great State o f Missouri has increased
by the number o f 500,000 inhabitants, which is within a fraction o f 74 per
cent. It is due to candor to state that the marked disproportion between
the rate o f gain in the north and south respectively, is manifestly to some
extent caused by the larger number of immigrants who settle in the former
section, on account of congeniality of climate, the variety o f occupation, the
dignity wherewith respectable employment is invested, and the freedom of
labor.

THE FLOW OF POPULATION TO THE SUBURBS OF LONDON AND LIVERPOOL.
A further publication o f the census returns, not under that designa­
tion, but in a column o f the Registrar-General’s annual report, giving the
population in all the sub-districts and divisions adopted for the purpose
o f registration, above 2,000 in all, shows in some detail the continuance




1862.]

Statistics o f Population.

377

o f the great movement from the rural districts into the towns, a displace­
ment of population which is more or less general over Europe, and which
proceeds as yet without any sign o f reaction. The flow o f population,
for their habitations at least, to the suburbs o f the great cities, is one o f
the most striking things in these tables. For instance, Everton (with
Kirkdale), a suburb o f Liverpool, had 35,776 people in 1851, and in 1861
the number was doubled. Another suburb, the parish o f W est D erby,
increased its population from 33,014 to 52,740, nearly 60 per cent in ten
years. So with M anchester; the town suburbs o f N ewton and Cheetham
had 27,103 inhabitants in 1851, and 41,042 in 1861, 50 per cent m ore;
and Pendleton rose from 16,974 to 24,448, 44 per cent. But the metro­
polis, thought so overgrown when it was so much smaller, presents
everything upon the grandest scale. I f we take up a map o f London, we
find these am ong the principal suburbs on the north side o f the Thames
— Poplar and Bow, Mild-end, Hackney, Islington, Kentish-town. H am p­
stead, St. Mary’s, Paddington, and Kensington ; those districts contained
328,880 inhabitants in 1851, and in 1861 they had 533,153, an increase
in this large population o f 62 per cent, or m ore than 200,000, being an
addition to these suburbs o f London o f a number o f persons exceeded by
the entire population o f only four provincial towns in all England. Or
taking another suburb, the southeastern— W alworth, Peekhara, Norwood,
Snydenham, and Plumstead increased in ten years from 70,974 to
123,629, a growth o f 74 per cent. These figures show in what direction
the tide sets, and though it has covered districts where our fathers saw
meadows, that is better than deepening in the old streets and courts.
But while the census show us in various spots this astounding rise o f a
host o f families, as if from the earth, it declares also that there is a
smaller population to be counted levant and couchant in the heart of
London and some other towns than there was ten years ago. Taken as a
whole, the m ore crow ded part o f London contained 1,150,000 people in
1851, and about the same number were found there in 1861, but it is
something to have thrown into the suburbs the increase o f the ten years
— in the whole metropolis 440,000, almost precisely the population o f
Liverpool.
It is true that the population o f the central portion o f L on ­
don has not remained the same in all its districts; Some are better off
than they7 were, and some w orse; north o f the Thames (speaking.still o f
this central and more crow ded section) there has been a decrease o f
11,000 or 12,000, and on the south side there has been a corresponding
increase. But even in the south there is a far greater tendency to in­
crease in the adjoining suburbs than in the hive that has settled along
the river sid e ; and it can hardly be that im provem ent will not spread
from the north to the south, and part o f the crowded population, wil­
lingly or unwillingly, disperse themselves over a larger area.




Journal o f Banking, Currency, and Finance.

378

[October,

JOURNAL OF BANKING, CURRENCY, AND FINANCE.

1. C it y

W eekly

P r o v id e n c e
por t

.

B ank

B an k s.

4. P a pe r

E urope.

2. W e e k ly
B ank

fo r

6. T h e

R etu rn s— N e w

B anks

of

a n d

Y ork

E ngland

th e

T a x

ork

B an ks .

Date.

January

,.

1 1 ,....
18........
it
2 5 ,....
February 1.......
((
8.........
((
15........
it
2 2 ,....
1, ______
March
“
8 ,....
“
15........
it
22____
(I
2 9 ,....
5 ,... . .
April
tt
1 2 ,...
a
1 9 ,...
2 6 ,...
((

May
10,. . .
1 7 ,...
if
2 4 ,...
((
8 1 ,...
June
7 ,...
it
1 4 ,...
“
2 1 ,...
<(
2 8 ,...
5,. . .
July
1 2 ,...
it
1 9 ,...
<(
2 6 ,...
August 2 , . . .
9____
“
16 _______
“
2 3 ,...
“

it

S O ,. ..

Sept.

6 ,...
1 3 ,...
2 0 ,...

<(

ft




(C

B il l .

a p it a l , J a n .,

B ank

N otes

CI TY W E E K L Y
N ew Y

B a n k s , P h il a d e l p h ia

Statem en t

7.

B a n k s, B o sto n

E ngland.

of

Sto len .

5.

Banks

I l l in o is .

of

T he

8.

B an k s,

B a n k s— C ensus

F ir s t

P aper

Money

R e'
in

BANK RE T UR N S .

1862, $69,493,5'7’7 ;

J a n .,

1861, $69,890,475.)

Weekly
Specie.
Circulation. Net Deposits.
Loans.
Clearings.
$154,416,826 $23,983,878 $8,586,186 $111,789,233 $100,642,429
152,088,012 25,373,070 8,121,512 113,889,762 105,634,811
149,081,433 26,120,859 7,369,028 113,327,160 107,732,780
145,767,680 26,698728 6,828,017 110,874,786 100,001,959
144,675,778 27,479,683 6,404,951 112,057,003
93,791,629
148,80.3,890 28,196,666 6,077,417 110,637,557 113.216,297
141,994,192 28,114,148 5,762,506 110,430,475 105,102,177
139,950,958 28,875,992 6,489,496 109,079,076 111,346,066
137,674,238 29,826,969 5,363,944 107,974,499 109,854,823
133,055.148 30,436,644 5,869,206 103,715,728 113,512,576
130,622,776 30,773,050 5,904,866 100,296,704 118,957.978
127,616,306 32,023,390 6,260,309
97,601,279 115,376.381
125,021,630 32,841,802 6,758,313
94,428,071 106,973,432
124,477,484 33,764,382 7,699,641
94,082.625 111,336,384
123,412,491 34,594,668 8,004,843
93,759,063 114,738,013
123,070.263 34,671,528 8,064,663
95,179,340 113,529,377
125,086,825 85,297,944 8,118,571 101,897,435 124,896,733
133,406,418 35,175.828 8,482,782 109,634,535 140,952,471
138,948,211 S2,239,86S 8,830,321 115,569,206 181,113,537
142,290,782 30,280,697 8,727,328 120,003,929 167,390,055
142,950,149 30,672,760 8,592,676 122,602,864 142,828,565
142,671,414 81,397,284 8,535,149 125,4.34,755 136,893,373
142,318,381 31,248,882 8.813,603 125,666,961 148,123,103
144,014,350 31,162,048 8,814,322 125,643,375 165,521,454
146,839.762 31,047,945 8,849,183 126,684,422 168,059,995
148,346,422 30,832,626 8,910,344 127,860,708 154,890,447
148,643,718 31,790,519 9,270,815 127.496,534 149,748,923
147,997,436 32,098,174 9,212,397 127,538,055 167,789,726
148,827,423 31,926,609 9,155,301 129,485,977 161,066,594
149,768,293 33,064,575 9,244,953 132,427,178 162,650,811
150,517,844 34,022,490 9,311,868 137,112,937 149,167,638
151,190,203 34,611,069 9,221,604 139,544,680 139,926 277
152,828,731 35,301,778 9,237,206 142,034,051 139,796,908
154,855,704 35,588,486 9,356,635 143,347,341 147,659,087
150,875,167
158,278,552 35,640,982 9,454,806 141,971,741
36,138,928 9,645,965 142,663,036 154,074,880
157,828,513 37,125,245 9,719,126 144,991,062 155,813,245
158,299,288 37,863,037 9,789,060 148,680,453 179,681,651

1862.]

P h il a d e l p h ia B an ks .

Date.
Jan. 6 ,. . .
«(
1 3 ,..
ft
20,. .
fi
2 7 ,.. .
Feb'., 3 ...
“
10,. ...
“
1 7 ,..
<{ 2 4 , . .
Mar. 3 , . . .
<< 10,. ..
“
17, ..
«
2 4 ,..,
tc 8 1 ,...
A pril 7 , . . .
“
1 4 ,...
ft
21 . . .
fi
2 8 ,...
May 5 , . . .
it
1 2 ,...
“
1 9 ,...
ft
2 6 ,...
June 2 , . . .
ft
9 ,...
ft 1 6 ,...
II 2 3 , . . .
ft 3 0 , . . .
July 7 , . . .
“ 1 4 ,...
“ 2 1 ,...
“ 2 8 ,...
Aug. 4 , . . .
tt 1 1 ,...
tt 1 8 ,...
tt
25,. . .
Sept. 1, . . .
“
8 ,...
it
15, . .
tt 2“>
*'*'»• ••

Loans.
$31,046,537
31,145,938
30.601,160
30,385,606
30,385,319
29,974,700
29,388,544
29,280,049
29,393,356
28,083,499
28,723,835
28,350,615
27,831,333
28,037,691
28,076.717
28,246,733
28,793,116
29,524,432
29,966,347
31,121,563
31,538,603
31,747,070
31,951,715
32,132,654
32,654,655
32,911,578
33,206,661
33,118,502
33,086,808
33,383,373
33,517,900
33,543,878
33,506,039
33,731.575
33,899,351
34,681,350
35,015,676
34,871,535

B oston B a n ks .

Date.
Jan. 6 , . . .
tt 1 8 , . . .
<t 2 0 , . . .
tt 2 7 , . . .
Feb 3, . .
“ 1 0 ,...
ft 1 7 , . . .
it 2 4 , . . .
Mar. 3 , . . .
“ 1 0 ,...
“ 1 7 ,...
fi 24,. . .
fi 31,. . .
Apr.. 7 , . . .
“ 1 4 ,...
tt 2 1 , . . .

379

Journal o f Banking, Currency, and Finance.

(C

( C a p i t a l , J a n .,

Specie.
$5,688,728
5,692,123
5,733,460
5,821,323
5,884,011
5,923,874
5,84 9,354
5,867,686
5,881,108
5,869,730
6,897,891
6,915,535
5,884,814
5,886,424
5,912,870
6,046,260
6,052,827
6,049,685
5,728,028
5,529,221
5,587,012
5,583,482
5,632,307
5,630,503
5,609,926
5,573,999
5,545,007
5,579,945
5,613,724
5,579,788
5,660,187
5,652,730
5,552,605
6,483,051
5,543,160
5,546,157
5,515,044
5,449,027

a p ita l,

J a n .,

Circulation.
$2,145,219
2,162,152
2,120,756
2,121,146
2,144.398
2,191,547
2,191,512
2,230,605
2,343,493
2,575.503
2,632,627
2.707,804
2,904,542
3,378,970
3,496,420
3,525,400
3,613,994
3,759,692
3,867,200
£,045,696
4,186,055
4,335,013
4,354,599
4,298,023
4,324,785
4,430,057
4.749,220
4,859,921
5,005,583
6,065,276
5,026,070
4,999,935
5,006,351
5,002,418
6,071,85 5
6,192,935
5,177,587
5,174,550

1862, $11 ,970,130,)

Deposits.
$21,396,014
21,324,510
20,698,496
20,058,098
20,068,890
19,032,535
18,692,182
18,777,300
18,541,190
17 875,771
17.253,461
17,066,267
17,024,198
16,636,538
18,112,446
19,011,833
20',223,556
21,316,614
23,002,263
.23,385,009
23,973,478
24,884,644
24,973,011
24 807,057
24,143,314
24,410,423
24,307,782
24,183,604
24,485,817
24,764,281
24,658,289
24,217,855
24,147,814
24,237,662
24,597,596
25,06 2,171
24,780,163
24,194,214

1862, 838,231,700;

J a n .,

Due
to bank8.
$3,645,966
3,992,952
4,120,261
4,209,006
4,572,872
4,890,288
4,661,442
5,205,203
6,218,383
5,131,834
5,342.876
5,210,365
5,100,186
5,607,488
4,868,842
4,548,327
4,470,674
4,531,837
6,118,541
5,597,984
5,472,615
5,373,322
5,161,280
5,036,828
5,144,628
5,583,644
5,733,574
5,936,594
5,794,325
5,918,294
5,984,242
6,339,018
6,400,880
6,533,786
6,518,107
6,632,905
7,420,242
7,702,439

Due
from bants.
$1,796,805
1,702,716
1,575,116
1,858.688
l,7i>7,136
1,587,481
2,052,031
1,935,414
1,828,383
1,733,169
1,649,137
1,774,162
2,134,892
2,231,889
2,634,171
2,504,147
3,128,069
3,823,659
4,981,291
4,804,956
5,120,902
5.372,748
5,355,034
5,396,328
4,800,094
5,283,273
5,422,124
5,415,203
6,219,445
6,308,984
5,406,075
5,204,511
5,316,223
5,446,155
5,322,089
5,139,978
5.104,687
5,212,073

1861, 838,231,700.)

Due
Due
Loans.
Circulation.
Specie.
Deposits.
to banks.
from banks.
$65,612,997 $8,920,486 $6,451,587 $27,093,839 $9,187,924 $8,701,873
64,704,039 8,580,607 6,612,512 25,642,994 9,634,227 8,805,255
64,409,585 8,5S5,277 6,549,871 25,441,327 9,547,319 9,018,388
63,025,191 8,562,175 6,284,268 24,030,776 9,593,545 8,727,348
62,628,793 8,529,483 6,260,299 28,500,321 9,727,783 8,766,415
62,340.600 8,514,600 6,616,000 22,784,700 9,892,600 8,965,500
62,587,788 8,410,890 6,469,309 22,034,794 9,653,725 8,315,887
62,053,640 8,341,588 6,580,205 21,515,228 9,625,869 8,644,860
61,678,500 8,364,600 6,318,700 21,208,500 9,681,500 8,982,600
61,834,500 8,409,585 6,693,139 20,740,208 9,906,110 8,460,721
61,747,000 8,471,000 6,364,800 20,554,000 9,790,000 7,981,000
61,655,420 8,441,058 6,219,512 20,326,087 9,715.256 7,669,531
61,360,789 8,441,196 5,908,272 19,975,018 9,434,782 6,978,527
61,208,974 8,674,170 6,557,152 21,014,000 9,24 5,088 8,133,124
61,058,969 8,688,573 6,170,383 21,009,010 8,949,259 7,173,374
61,019,787 8,679,866 5,924,906 21,570,017 8,529,277 6,946,164




380

Journal o f Banking, Currency, and Finance.

Date
A pi-]2 8 ,...
M ay 5 , . . .
1 2 ,...
t; 1 9 ,...
<( 2 6 , . . .
June 2 , . . .
“
9 ,...
(( 1 6 ,...
« 2 3 ,...
(C
3 0 ,...
July 7 , . . .
“ 1 4 ,...
A 2 1 ,...
« 2 8 ,...
Au<T.
3* 4
*» •••
“ 1 1 ,...
«< 1 8 ,...
«( 2 5 ,..,
Sept. 1 , . . ,
((

«

8 , . . .

1 5 ,...
2 2 ,...

Loans.
60,441,452
59,805,545
59,521,251
60,059,635
60,266,275
60,677,367
62,059,198
62,591,341
63,056,262
63,638,999
64,590,268
65,635,000
65,939,168
66,168,806
66,836,72?
67.508,527
68,234,988
68,843,323
69,130,636
69,788,676
69,958,000
70,332,897

Due
Due
Specie,
Circulation.
Deposits.
to banks. from banks.
8,666,797 5,500,396 22,402,134 8,493,004 7,813,530
8,593,990 5,453,815 23,823,199 8,655.206 9,898,508
8,422,738 5,537,987 24,827,121 9,197,744 11,755,589
8,304,534 5,602,844 25,793,916 9,614,737 13,105,350
8,108,695 5,503,756 26,264.656 10,029,198 13, 95,636
8,089.723 5,348,138 26,730,486 10,226,491 13,924,896
7,983,425 5,696,413 26,277,021 10,610,702 12,888,043
7,894,899 5,875,612 95,602,048 10,632,170 11,884,692
7,850,634 6,159,115 25,994,738 10,644,000 12,122,000
7,8014,87 6,131,019 26,237,754 10,678,205 12,265.781
7,934 037 6,943,827 26,868,862 11,686,142 13,869.180
7,978,000 7,091,000 26,685,000 12.675,700 13,624,000
7,980,780 6,840,474 26,SOS,242 13,436,486 14.060,762
7.963.696 6,618,160 26,698,825 13,583,589 13,197,239
7,966,702 6.633,822 27,315,402 14,013,524 13,473,620
7,967,761 6.768,178 26,816.409 14,409,359 12,379,978
7,975,427 6.778,260 26,572,677 14,854,778 12,566.167
8,055,402 6.772.215 26,791,827 15,690,425 13,231,313
8,043,888 6,815.923 26,646,647 15,951,097 13,105,871
8,006,695 7,065,156 26,942,687 15,982,000 13,106,000
7.968,000 7,153,000 26,140,600 17,683,000 13,91)2,000
7,968,546 7,239,383 25,970,904 17,594,158 13,585,410

P rovidence B anks.
Date.
Jau. 11,
“ 18, .
“ 25, .
Feb. 1, .
“
8, .
“ 16, .
“ 22, .
Mar. 1, . . . .
“
8, .
“ 15, .
“ 22, .
“ 29, .
A p r. 5,
“ 12, . . .
“ 19,
“ 26,
M ay 3,
“ 10,
June 7,
“ 14,
“ 21,
“ 28,
July 5,
“ 12, .
“ 19,
“ 26.
Ausr.l 6,
“ 23,
Sept 6,
“ 20, . . .

[October,

(C

a p ita l

,

J a n .,

1862, $15,454,600.)

Due
Due
from banks.
to banks.
Loans
Specie. Circulation.
Deposits.
$19,356,800 $403,700 $1,889,600 $3,004,600 $1,099,800 $915,400
898,500
19,238,700 402,900 1,890.300 2,899,200 1,071,500
959,400 1,057,400
19,160,600 394,700 1,756,500 2,899,600
925,500
871,800
19,160,600 394,700 1,811,100 2,950,500
934,700
900,400
19,087,700 395,900 1,814,300 2,915,200
911,100 1,081,000
19,109,400 394,800 1,784,000 2,762,200
898,900 1,180,000
18,869,800 396,800 1,879,100 2,792,700
953 900 1,283,000
18,920,500 407,500 1,791,200 2,924,400
18,953.900 405,100 1,973,500 3,030,600 1,131,500 1,598,800
18,998.600 408,500 1,848,100 2,946,800 1,103,200 1,484,300
19,148,400 408.300 1,879.200 3,060,900 1,085,000 1,407,700
19,360,500 411,300 1,857.100 3,078,800 1,021,000 1,165,400
19.641,000 417,500 2,102,000 3,124,000 1,115,500 1,063,200
894,800
19,719,200 416,600 2,036,300 3,017,700 1,081,000
845,400
19,644,500 408,600 1,953,400 3,015,900 1,020.400
961,200
948,400
19,620,300 413,700 1,877,200 3,123,500
950,430 1,156,072
19,538,410 417,378 1,979,828 3,134,601
19.070,200 410,300 1,969,400 3,164,700 1,132,500 1,714.400
19,236,100 395,600 2,016,600 3,342,400 1,653,000 2,101,900
19,641,600 388,500 2,182,700 3.274,600 1,666,500 1,818,200
19,827,500 385,500 2,324,900 3,153,600 1,627,500 1,744,400
20,285,500 383,400 2,510,500 3,283,200 1,873,500 1,753 700
20,588,800 382,100 2,888,300 3,531,500 1,763,900 1,858 800
20,416,400 388,000 2,953,800 3,183,100 1,744,600 1,796,600
20,494,600 384,800 2,980,200 3,347,300 1,918,500 2,023,400
21,078,400 376,400 3,143,100 4,282,200 2,061,800 2,150,200
21,051,000 367,600 3,086,700 3,780,500 1,646,200 1,927,500
21,119,500 363,300 3,102,000 3,569,900 1,80 l,6f'0 2,090,700
21,279,200 355,700 3,394,200 8,704,200 1,844,800 1,683,300
35,690 3,484,300 3,731,600 1,710,800 1,642,300
21,804,200




1862.]

Journal o f Banking, Currency, and Finance.
BANK

OF E N G L A N D .

W EEKLY

Circulation.
Date.
Jan. 1 . . . £20,818,190
“
8 ____ 21,086,675
“ 1 5 ____ 21,460,925
“ 2 2 __
21,697,928
“ 2 9 ____ 21,183,376
21,427,554
Feb. 5 ____
“ 1 2 ____ 21,236,312
“ 1 9 ____ 20,772,726
“ 2 6 ____ 20,736,715
21,217,246
Mar. 5 . . . .
“ 1 2 ____ 20,013,685
“ 1 9 ____ 20,483,509
“ 2 6 ____ 20,814,655
21,501,695
A p ril 2 . . . .
“
9 ____ 21,822,105
“ 1 6 ____ 22,048,463
“ 2 3 ____ 21,655,553
“ 3 0 ____ 21,946,997
21,752,884
May 7 . . . .
21,618,780
“ 14...
“ 2 1 ____ 21,539,430
“ 2 8 ____ 21,265,561
21,515,263
June 4 ____
21,329,641
“ 11____
“ 1 8 ____ 21,076,059
“ 2 5 ____ 21,172,057
22,242,361
July 2 . . . .
“
9 ____ 22,504,490
“ 1 6 ____ 23,085,409
“ 2 3 ____ 22,942,503
22,933,036
“ 30 . . .
23,378,393
Amr. 6 . . . .
“ 1 3 ____ 22,920,727
22,900,555
“ 20...
“ 2 7 ____ 22,079,890
Sept. 3 ____
22,348,918

381

STATEM ENT.

Public
Private
Coin and
Deposits.
Securities.
Deposits.
Bullion.
£7,345,833 £15,136,062 £30,419,730 £15,961,439
4,542,974 18,206,488 31,022,505 16,046,017
4,583,353 16,480,452 29,509,864 16,291,626
5.467,340 15,366,081 29,464,720 16,350,939
5,753.063 14,751,486 28,696,456 16,280,369
5,788,441 14,179.917 28,834,352 15,956,903
4,884,989 15,526,334 29,010,241 16,042,949
6,397,144 16,085,843 28,771,812 15,894,405
6.762,849 14,939,742 29,024,962 15,749,065
0,755,287 18,737,507 29,692,441 15,673,898
7,527,911 13,763,718 29,489,795 16,027,111
8,011,694 13,340,928 28,953,089 16,548,586
8,413,275 13,154,258 29,140,207 16,812,798
8,456,468 13,622,532 30,398,790 16,849,198
6,625,314 16,336,169 29,981,793 16,881,940
5,225,132 15,710,260 29,325,888 16,743,434
5,534,973 16,915.247 29,022,128 17,172,204
6,867,875 14,357,007 29,164,075 17,089,446
7,508,991
13,866,643 28,961,214 17,265,745
6,304,683 14,948,308 29,076,079 16,919,147
6,557,811 14,567,671 29,433,044 16,344,940
6,937,808 14,685,087 29,824.704 16,178,815
7,518,007 13,188,136 29,841,864 15,489,723
8,825,516 13,156,662 31,396,492 15,036,100
9,322,949 13,085,271 31,342,547 15,268.453
9,629,594 13,399,245 31,424,661 15,909,638
9,672,345 13,851,869 82,709,039 16,220,771
6,429,939 17,199,715 31,287,912 17,055,537
6,223,380 17,063,630 30,942,358 17,671,890
5,291,213 17,202,923 30,631,501
18,060,617
5,895,840 16,903,068 30,542,050 18,448,443
6,157,358 15,232,959 30,162,297 17,956,938
6,838,546 14,694,854 29,929,352 17,778,846
7,150.252 14,568,007 80,309,708 17,674,604
7,508,882 14,865,006 30,106,295 17,678,698
7,671,934 14,973,470 30,808,748 17,825,220

Pate of
Discount.
3 pr •ct.
24
24
24 “
M
24
24
24
24 “
24 «
2-4
24 «
n

24
24
24
24
24
24
24
24
3
3
8
3
3
3
3
n

24
2
2
2
2
2
2
2

a

it
a
M
“
U
«
“
“
«(
it
((
((

u
“

BANKS—CENSES REPOKT,

Among the evidences of prosperity and general accumulation o f wealth
in the United States, the multiplication of banks with increased aggregate
capital is one of the most significant. When, as in this country has been
generally the case, individual promises representing produce and merchan­
dise, and made available through the instrumentality of banks, are almost
the sole means by which commodities pass from the producers to the con­
sumers, the increased action o f the banks becomes the index of larger pro­
duction and more active trade. Where crops and the products of manu­
facturing industry are more abundant, the aggregate amount of paper created
by their interchange is larger, and the negotiations o f this paper require
greater banking facilities. This want usually manifests itself in a more
lucrative banking business, which draws more capital into that employment.
Such a state of affairs presented itself during the decade which closed with
1860. The bank movement in the United States during that period under­




Journal o f Banking, Currency, and Finance.

382

[October?

went great expansion without becoming less sound. In that respect it pre­
sented a strong contrast to the expansion that occurred in the decade which
ended with 1840. In that period a season o f speculation in bank stocks
and wild lands manifested itself, and the paper created for bank negotiation
represented imaginary or speculative values rather than commodities pro­
duced. Those values were never realized, and the whole paper system
based on them collapsed. If we compare the aggregate features of the
banks at each decade with the population and the sum of the imports and
exports for corresponding dates, the results are as follows:

1830.
1840.
1843.
1850.
1860.

No. of
banks.

Capital.

830
901
691
872
1,562

$145,192,268
358,442,692
228,861,948
227,469,074
421,880,095

Loans.
$200,451,214
462,896.523
251,544,937
412,607,653
691,945,580

Specie.

Circulation,

Import
and export. Population.

$22,114,917
33,105,155
33,505,806
48.677,138
83,594,537

$61,323,898
106,968,572
58,563,608
155,012,911
207,102,477

$144,726,428
239,227,465
149,090,279
330,037,038
762,228,550

12,866,020
17,069,453
...............
23,191,876
31,445,080

The year 1843 was that o f the lowest depression after the extensive
liquidation that followed the expansions of 1 8 3 7 -3 9 . In that year the bank
credits were, however, large, as measured by the foreign trade or the sum
of the imports and exports, but an internal trade bad been developed
through the settlements of the western country which required more credits.
The operation of the general bankrupt law aided in clearing away the wreck
of over two hundred banks that had failed, and which failures involved that
of several sovereign States that had loaned their credits for bank capital.
The elements of prosperity were now again active, and banking facilities
were required to a greater extent. The severe losses the public had suf­
fered made some more comprehensive guaranty necessary to a full restora­
tion of confidence in bank paper. In New York, in 1838, a new principle
had been adopted— that of requiring the banks to deposit security for their
circulating notes and holding stockholders liable to an amount equal to the
value of their shares. On this basis the banking of New York was thence­
forth to operate; and the principle, as its value became recognized, was
gradually adopted in other States.
The failure o f the Irish harvests o f 1 8 4 6 -1 7 , followed by those o f Eng­
land in 1 8 4 8 -4 9 , by creating a great demand for American breadstuff's,
stimulated business and gave a new impulse to banking. The year 1850
showed an amount o f foreign trade more than double that o f 1843.
W ith
the increase o f business the banks were very prosperous, as is manifest in
the fact, that although the capital o f the banks was no more iu that year
than in 1843, their discounts were one hundred and fifty millions, or 60
per cent greater. Thus the decade opened with a very lucrative banking busi­
ness, and amid the greatest excitement in relation to the gold discoveries of
California. The spirit o f enterprise abroad was very stroug, and the im­
pression that prices were to rise by reason ot the depreciation. o f gold was
prevalent; hence the general desire to operate, in order to avail o f the
anticipated profits. Industry o f all descriptions was very active and produc­
tive, and there never was a period when the national capital accumulated so
fast, a remarkable evidence o f which was afforded in the vast amount ex­
pended in the construction of railroads; while, of the large capital accu­
mulated, a considerable portion was employed in banking. The incorpo­
rated bank capital increased nearly $2i)0,u00,000 and the private bank
capital half as much. The report o f the Treasury Department gave the
latter amount at $118,036,080.




1862.]

Journal o f Banking, Currency, and Finance.

383

The increase o f bank capital was large in the Atlantic cities, particularly
in Boston and New York, o f which the number and capital were respectively as follow s:
1850.

-P 6 0 _________N

B o s to n ... .
New York.

No.
30
31

121,760,000
33,600,602

No.
42
55

T o ta l. . .

61

$55,360,602

97

Capital.

$36,581,700
69,758,777

'No.
12
24

$14,821,700
36,158,175

$106,340,477

36

$50,979,875

Capital.

Capital.

This increase o f banks, following the general expansion of business,
brought with it the necessity o f some improved means o f adjusting the daily
mutual balances. The fifty-five banks in New York city, for example, were
each compelled to settle as many accounts daily. To obviate that great la­
bor the clearing system was devised. Each bank sends every morning to
the clearing house all the checks and demands it may have received the day
previous, in the course o f business, upon all others. These in a short time
are interchanged, and a balance struck and paid. This system was estab­
lished in 1853, and the amount o f the exchanges and balances annually
were as follows :
Amount exchanged.

1 8 5 4 .....................
1 8 5 5 .....................
1 8 5 6 .....................
1 8 5 7 .....................
1 8 5 8 .....................
1 8 5 9 .....................
1 8 6 0 .....................
1 8 6 1 .....................
T o t a l ..........

Balances.

06
33
47
06
09
01
69
05

$297,411,493
289,694,137
334,714,489
365,313,901
314,238,910
363,984,682
308,693,438
353,383,944

$50,704,365,288 81

$2,627,434,997

$5,750,455,987
5,362,912.098
6,906,213.328
8,333,226,718
4,756,664,386
6,448,005,956
7,231,143,056
5,915,742,758

W ith the development o f business the transactions grew immensely up
to 1858, when they fell off nearly one-half under the panic o f that year.
They recovered gradually up to the breaking out o f the rebellion. The
banks of Boston and Philadelphia adopted the same system with similar re­
sults. The figures indicate to what an extent the credits o f individuals,
created in the operations o f business, are cancelled through the intervention
of the banks of the cities where the commerce o f the whole country cen­
tralizes.
In the States o f Illinois, Mississippi, Arkansas, and Florida, after the col­
lapse o f 1837, no banks were again created up to 1850, and the three last
named are still without them, with the exception o f two small ones in Florida.
Texas has a small bank at Galveston, and Utah, Oregon, and New Mexico
have none. In the District o f Columbia four old banks expired by limita­
tion of charter in the hands o f trustees, and Congress refused to recharter
them ; but they continue to transact business.
It is probable that a large portion o f the increase in banking, particularly
at the W est, has been due to the introduction o f the security system o f
New York, the idea o f which seemed to popularize that which had previ­
ously been in bad odor. The following table shows the States which have
adopted the free banking principle in whole or in p a rt:




384

journal o f Banking, Currency, and Finance.
,---------------------------

Year adopted.

N ew Y o r k ...........................................
M ichigan..............................................
New je r s e y .........................................
V ir g in ia ..'...........................................
Illin o is ..................................................
O h io .......................................................
I n d ia n a ................................................
W isconsin.............................................
M issouri................................................
Tennessee..............................................
Louisiana.............................................
Io w a .......................................................
M inn esota............................................

Stocks held.

1860. -------------------------- ,

1838 $26,897,874
1849
192,831
1850
962,911
1851
3,584,078
1851
9,826,691
1851
2,153,552
1852
1,349,466
1854
5,031,504
1856
725,670
1852
1,233,432
1853
5,842,096
1858
101,849
1858
50,000

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

$ 5 7 ,9 5 1 ,9 5 4

[October,

Circulation.

$29,9,-9,506
222,197
4,811,832
9,812,197
8,981,723
7,983,889
5,390,246
4,429,855
7,884,885
5,538,378
11,579,313
568,806
50,000
$ 9 7 ,2 1 2 ,8 2 7

The principle cannot be said to have w orked well except in N ew Y ork ,
where it required constant alterations for m any years to bring it to perfec­
tion.
T h e fo llo w in g table show s the n u m ber o f banks in the U n ited States in
1860:
Banks &
States.
branches. Capital.
Loans.
Specie.
Circulation.
Deposits.
Alabama.........
8 $4,901,000 $13,570,027 $2,747,174 $7,477,976 $4,851,153
Connecticut...
74 21,512,176 27,856,785
98 9,92 0
7,561,519 5,574,900
Delaware.........
12
1,640,775
8,150,215
208,924
1,135,772
976,226
Florida.............
2
300,000
464,630
32,876
183,640
129,518
Georgia............
29 16,689,560 16,776,282 3,211,974
8,798,100 4,738,289
Illinois.............
74
5,251,225
387,229
223,812
8,981,723
697,037
Indiana...........
97
4,343,210
7,675,861 1,583,140
5,390,246 1,700,479
Iowa................
12
460,450
724,228
225,545
563,806
527,378
Kansas.............
1
52,000
48,256
8,268
8,895
2 695
K e n t u c k y ....
45 12,835,670 25,284,869 4,502,250 13,520,207 5,662,892
Louisiana___
13
24,496,866 35,401,609 12,115,431 11,579,313 19,777,813
Maine...............
68
7,506,890 12,654,794
670,979
4,149,718 2,411,022
Maryland........
31
12,568,962 20,898,762 2,779,418
4,106,869 8,874,180
Massachusetts.
174 64,519,200 107,417,323 7,532,647 22,086,920 27,804,699
Michigan.........
4
755,465
892,949
24,175
222,197
375,397
Missouri.........
38
9,082,951 15,461,192 4,160,912
7,884,885 8,357,176
N. Hampshire.
52
5,016,000
8,591,688
255,278
3,271,183 1,187,991
New Jersey...
49
7,884,412 14,909,174
940,700
4,811,832 5,741,465
New York___
303 111,441,320 200,351,332 20,921,545 29,959,506 104,070,273
North Carolina
50
6,626,478 12,213,272 1,617,687
6,594,047 1,487,273
O h io...............
62
6,890,839 11,100,462 1,828,640
7,983,889 4,039,614
Pennsylvania.
90 25,565,582 50.327,167 8,378,474 13,132,892 26,167,843
Khode" Island,
91 20,865,569 26,719,877
450,920
3,558,295 3,553,104
South Carolina
20 14,962,062 27,801,912 2,324,121 11,475,634 4,165,615
T en nessee....
34
8,067,037 11,751,019 2,267,710
5,538,378 4,324,799
Vermont.........
46
4,029,240
6,496,523
198,409
3,882,983
787,834
V irginia.........
65
16,005,156 24,975,792 2,943,652
9,812,197 7,729,652
Wisconsin___
108
7,620,000
7,592,361
419,947
4,429,855 3,085,818
T o ta l........... 1,642 421,890,095 691,495,580 83,564,528 207,102,477 253,802,129
Total 7th census 872 227,469,077 412,607,653 48,671,138 155,012,881 127,567,655
Increase.




770 194,421,018 278,887,927 34,893,390

62,089,596 126,234,474

1862.]

Journal o f Banking, Currency, and Finance.

385

PAPER, FOR BANK OF ENGLAND NOTES, STOLEN—COUNTERFEITS HOW
DETECTED.
The Directors o f the Bank o f England have met with a serious reverse.
Hitherto, their great protection against the ingenuity o f the forger has
been the peculiarity in the manufacture o f their paper— a peculiarity which
has hithertor defied imitation. Various as have been the attempts to imi­
tate this paper, it has never been successful, and a spurious Bank o f England
note could always be detected by the quality of the paper alone— that is,
detected by all who are accustomed to the handling o f the national notes.
Finding that they could not successfully make this paper, the forgers have
had recourse to a more simple mode o f procuring it— they have stolen a
large quantity, some say several tons, from the Bank’s mills, in Hampshire,
and there is great consternation in Threadneedle-street. The robbery was
only brought to light by the great number o f forged notes in circulation,
which are so like the real thing that the most experienced in such matters
have been imposed upon, eveu practised cashiers and others long accus­
tomed to the handling o f notes. W hen the painful fact was satisfactorily
established, the Bank Directors immediately issued a reward o f £ 1 ,5 0 0 for
the discovery o f the thieves and forgers, o f which £ 5 0 0 is to be paid for
the detection o f the paper-stealers, and £ 1 ,0 0 0 to those who can trace out
the persons using the paper in the printing of forged notes. Bankers,
money-changers, and others are urged in the same announcement to exer­
cise the utmost vigilance in the receiving o f Bank of England notes, and
are requested to note the name and address o f the persons from whom
they receive them. The robbery in question is a very serious affair both
at home and abroad, and its consequences may be most disastrous unless
the culprits are detected and brought to justice.
The Liverpool Post of August 21 gives the following instructions for
detecting the counterfeits now in circulation:
The forged £ o and £ 1 0 Bank o f England notes now in circulation are
easily detected. In the first place they are vilely engraved, the signature is
clumsy and unlike, and the vignette o f Britannia is so badly executed that
a mere glance detects the forgery. In the genuine note the background
represents air and water— the air by faint lines, the water by dark lines
but the most facile way is to look at the numbers. Previous to 1858 the
II

two letters, one above the other, thus,— 59 78 4*, for instance, were en-

N
graved in what printers call open letters, but now these directing letters are
ii

printed in black, thus,

56S4*. The forgers copied notes issued before
N
1858, but date their forged notes 1861 or 1862.

THE FIRST PAPER MONEY IN EUROPE.

The following account of the first issue of paper money in Europe, is
taken from W a sh in g t o n I r v in g ’ s “ Chronicle of the Conquest of Gra­
nada
“ After the city of Alhambra was taken from the Moors, the veteran
Count De Tendilla was left governor, and we were informed that this
VOL.

x l v ii.— n o .




iv .

25

386

Journal o f Banking, Currency, and Finance.

[October,

cavalier at one time was destitute o f gold and silver wherewith to pay the
waees of his troops and the soldiers murmured greatly seeing that they
had not the means o f purchasing necessaries from the people o f the towns.
“ In this dilemma what does this most sagacious commander ? He
takes him a number o f little morsels o f paper, on which he inscribes various
sums, large and small, according to the nature o f the case, and signs them
with his own hand and name.
These did he give to the soldiery in earn­
est o f their pay. H ow ! you will say, are soldiers to be paid with scraps of
paper? Even so, I answer, and well paid too, as I will presently make
manifest; for the good Count issued a proclamation ordering the inhabi­
tants of Alhambra to take these morsels of paper for the full amount there­
on inscribed, promising to redeem them at a future time with silver and
gold, and threatening severe punishment to all who should refuse.
“ The people having full confidence in his words, and trusting that he
would be as willing to perform the one promise, as he certainly was able to
perform the other, took those curious morsels o f paper without hesitation
or demur. Thus by a subtle and most mysterious kind of alchemy did
this cavalier turn a useless paper into precious gold, and make his im­
poverished garrison abound in money.
It is but just to add that the
Count o f Tendilia redeemed his promise like a loyal k n ig h t; and this
miracle, as it appeared in the eyes o f Antonio Agrepieda, is the first in­
stance on record in Europe o f paper money, which has since inundated the
civilized world with unbounded opulence.
THE BANKS AND THE TAX BILL.
[ o fficia l

r e p o r t .]

T W e are indebted to G eorge D. Lyman, Esq., for the following report
o f the Bank Tax Committee adopted by a meeting o f bank officers, held
Monday, Sept. 24, 1862.
The undersigned, appointed a Committee for the consideration o f the
United States Tax Law, as affecting the business o f Banks, after a very care­
ful consideration o f the subject, beg leave to report the following schedule,
approved by Governor B o u t w e l l , the Commissioner o f Internal Revenue,
as the result o f their labors. The Committee take this opportunity o f re­
turning to that gentleman, on behalf o f the Associated Banks o f this city,
their cordial thanks for the kind and courteous treatment received at his
hands during their several interviews with him at Washington.

New York , September 29, 1862.
G eo. S. C ole, President Am . Exchange Bank,
A . E. S illiman, President Merchants’ Bank,
J. M. Morrison, President Manhattan Company, [ Committee.
Jos. M. P rice, President Oriental Bank,
R. H. L owry, Cashier Bank of the Republic,
J
SCHEDU LE.

1st, Agreements or Contracts other than those hereinafter named, for
each sheet or piece o f paper upon which the same shall be writ­
ten, five cents........................................................................................................05
2d. Checks, Drafts, or Orders, for the payment o f money, payable
at sight or on demand (for any sum exceeding $20,) each two cents
.02




1862,]

Journal o f Banking, Currency, and Finance.

387

3d. Inland Bills of Exchange, Drafts, Checks, or Orders drawn npon
places other than the place o f issue, i f payable at sight, or on de­
mand, are subject to the same rate o f tax, v iz :........................................... 02
4th. Inland Bills o f Exchange, Drafts, or Orders for the payment o f
money otherwise than at sight or on demand, and all promissory notes on
demand or on time (excepting Circulating Bank Notes.)
Exceeding
Exceeding
Exceeding
Exceeding
Exceeding
Exceeding
Exceeding
Exceeding
Exceeding
A nd for

$20 and not exceeding $ 1 0 0 ............................................................05
$100 and not exceeding $ 2 0 0 ........................................................... 10
$200 and notexceeding $ 3 5 0 ...........................................................15
$350 and notexceeding $ 5 0 0 ...........................................................20
$500 and notexceeding $ 7 5 0 ...........................................................30
$750 and notexceeding $ 1 ,0 0 0 ....................................................... 40
$1,000 and not exceeding $ 1 ,5 0 0 ................................................... 60
$1,500 and not exceeding $ 2 ,5 0 0 .......................................... 1 00
$2,500 and not exceeding $ 5 ,0 0 0 .......................................... 1 50
every additional $2,500, or part o f $2,500, one d o lla r .. . . 1 00

5th. Foreign Bills o f Exchange drawn out o f but payable in the United
States, and all such bills, drawn in, but payable out o f the United States
“ when drawn singly or otherwise than in a set o f three or more,” and all
letters o f Credit, pay the same rates o f duty as in the preceding Schedule.

[N ote. — W h en such bills are drawn in any foreign currency the equiva­
lent in dollars is taxable according to the standard value fixed by the Uni­
ted States.]
6th. Bills o f Exchange drawn in, but payable out o f the United
States, “ if drawn in a set o f throe or more,” for every Bill of each
set, not exceeding $150, or its equivalent, three cents........................... 03
Exceeding $150 and not exceeding $ 2 5 0 ........................................................ 05
Exceeding $250 and not exceeding $ 5 0 0 ....................................................... 10
Exceeding $500 and not exceeding $ 1 ,0 0 0 .....................................................15
Exceeding $1,000 and not exceeding $ 1 ,5 0 0 ................................................ 30
Exceeding $1,500 and not exceeding $ 2 ,2 5 0 ................................................ 30
Exceeding $2,250, and not exceeding $ 3 ,5 0 0 ...................................................50
Exceeding $3,500 and not exceeding $ 5 ,0 0 0 ................................................ 70
Exceeding $5,000 and not exceeding $ 7 ,5 0 0 ........................................... 1 00
And for every additional $2,500, or part thereof........................................30
7th. Bonds o f Indemnity, fifty cents.............................................

50

8 th. Certificates o f Stock in any incorporated company, each twentyfive cents................................................................................................................ 25
9th. Certificates o f Deposit o f Bank, Trust Company, Banker, or P er­
son acting as such, not exceeding $100, two cents.....................................02
Exceeding $100, five cents.....................................
05
10th. Powers of Attorney—
For sale or transfer o f Stocks or Bonds, or for the collection of D ivi­
dends or Interest, twenty-five cents................................................................ 25
Or proxy for voting at an election, ten cents.............................................. 10
For receiving or collecting rents................................................. , .................. 25
General Powers— For all purposes other than those above specified 1 00

[N ote.— General Powers will not be valid for either of the specific ob­
jects above named, without the addition of the stamp required therefor.]




388

Journal o f Banking, Currency, and Finance.

[October,

11th. Protests, each twenty-five cents...................................................
25
12th. Tax on all Dividends, and on all sums added to Surplus or
Contingent funds.......................................................................... Three per cent.
13th. Stamps issued for specific instruments cannot be used for any other.
(See sec. 96.)
14th. The person using or affixing a stamp, must write thereupon the
initials o f his name, and the date when used. (See sec. 99.)
The penalty for making, signing, or issuing any instrument, document,
or paper o f any kind, without the same having thereon a stamp to denote
the duty, is fifty dollars, and such a paper will be invalid and o f no effect.
(Sec. 95.)
The certification o f checks, already duly stamped, will require no addi­
tional stamp for such certification.
The stamp tax upon protests should he added to the expenses thereof.
All dividends or coupons, payable prior to or on September 1st, 1862 a l­
though paid after that day, are exempt from the operations o f the law.
Checks dated or payable ahead, are subject to taxation as promissory notes.
Stamps are not required upon documents made prior to October 1st, 1862,
excepting upon foreign bills o f exchange, which must be stamped on accep­
tance.
The Committee recommend, as a simple and convenient method, that the
three per cent tax required upon dividends and surplus profits be deducted
by banks in gross from their net earnings before the declaration of divi­
dends. Dividends then declared would be free from tax. The three per
cent thus withheld must be paid to the United States within thirty days
from the date on which such dividends are payable, under penalty o f five
hundred dollars for default. (Sec. 82.)
Stamps must be affixed to all documents by the party issuing the same,
before presentation at B a n k ; and all documents issued by a Bank must be
stamped by it before delivery, as required by resolution unanimously passed
at a meeting o f Bank Officers, September 15.
Stamps, in amounts o f $50 and over, can be obtained o f the Commis­
sioner o f Internal Revenue, as per Schedule hereunto annexed, for which a
commission o f not exceeding fiver per cent, in stamps, will be allowed.
All checks o f a Bank upon itself, for payment o f dividends or otherwise,
and all written papers for facilitating the internal business o f Banks, are
exempt from tax.
Orders to pay dividends are not Powers o f A ttorn ey; but, like drafts at
sight, are subject to the stamp o f two cents.
Bills o f Exchange, drawn in duplicate, must both be stamped.
Stamps may be canceled by an instrument made for the purpose o f im­
pressing the initials of 'the Bank or person thereon, to which the date must
be added.
Revenue stamps may be ordered from this office in quantities to suit
The omission to cancel the stamps on checks does not invalidate the
checks, but subjects the maker to a fine o f fifty dollars.

Washington, September 25, 1862.
I have examined the foregoing memoranda, and I am o f opinion that
the specifications conform to the provisions o f the Excise Law in allessen­
tial particulars.
G eo . S. B outwell, Com. o f Internal Revenue.




1862.]

Journal o f Banking, Currency, and Finance.

389

Until the government provide stamps no penalty will be exacted for
their omission.

O ffice of I nternal R evenue, )
Sevtember 17 th. j
Revenue Stamps may be ordered from this Office in quantities to suit
the purchasers.
Orders should cover remittances o f Treasury notes, or
an original certificate o f a United States Assistant Treasurer, or designated
depositary, o f a deposit made for the purchase o f stamps.

The follow ing commission, payable in stamps, will be allowed :
On
On
On
On

purchases
purchases
purchases
purchases

of
of
of
of

$50 or more, two per centum.
8100 or more, three per centum.
$500 or more, four per centum.
$1,000 or more, five per centum.

In sending orders for stamps it should be remembered that every stamp
expresses upon its face its kind as well as its denomination, and that each
stamp must be used for the purpose thus specified, and for no other. For
instance : Check stamps must be used for checks a lon e; contract stamps
only on contracts, etc., etc. Revenue stamps will be ready for delivery
on the 22d instant. Every correspondent is requested to give the State,
as well as town and county, o f his residence.

If not otherwise instructed, the stamps will be transmitted by mail.
G eorge S. B outwell, Commissioner.
On motion of Mr.
adopted, v iz.:

H ayden,

the following resolutions were unanimously

Resolved, That the report of the Committee be accepted and adopted,
and the Committee discharged.
Resolved, That the thanks o f this meeting be presented to the Com­
mittee for the faithful discharge of their arduous labors.
The following resolution was also adopted unanimously, v iz .:
Resolved, That, until the governm ent provide stamps for checks, it is
understood that the written agreement entered into between the banks,
on the 15th o f September, 1862, be considered extended, and that a copy
of this resolution be sent to every bank which has signed that agreement
and their written assent to this resolution requested, and that the Chair­
man o f the Clearing-house Committee be authorized to notify the banks
when that agreement becom es binding.
On motion o f Mr. B erry, it was ordered that the report o f the Com ­
mittee be printed, for the use o f the banks and the information o f their
correspondents.
The meeting then adjourned.




G eorge D. L yman, Secretary.

[October,

Journal o f Mercantile Law.

390

JOURNAL OF MERCANTILE LAAV.
1.

P r o m is s o r y N o th
Statute
N otes

of

M ade

P ayable

F rau ds.
in

4.

on

No

K entucky

a n d

2. A

D em and.

More

S a il o r s

P aya ble

in

Q u e s t io n

D e s e r t in g
N ew

a t

of

“ C o m m e r c ia l

San

F r a n c is c o .

M o r a l i t y .”

3.

5. P r o m is s o r y

Y ork.

PROMISSORY NOTE PAYABLE ON DEMAND.
An

in d o rse r on a note p a y a b l e on dem and w it h in te r e st ; rem ains l ia b l e until
AN ACTUAL DEMAND IS MADE EVEN THOUGH SEVERAL YEARS MAY ELAPSE BEFORE SUCH
DEMAND IS MADE.

A n interesting case has been decided lately by the Court of Appeals of
the State o f New York, (MooRETr vs. T odd , 23 N. Y . Reports 28,) settling,
so far as this State is concerned, the vexed question o f how long the ho'der
o f a note payable on demand with interest can omit to protest the note
and still be able to hold the indorser. It is well known that the payment
o f an ordinary note must be demanded when due, and protest must be
served without delay— that is due diligence must be used in performing
the act. Thus in the language o f the books, notice o f the dishonor o f the
bill or note must be given within a reasonable time. W hen parties reside
in the same town or city, this reasonable time is held not to extend beyond
the next day after the obligation is due and presentment for payment has
been made. W hen they reside in different towns or cities and the notice
is sent by post, it must be mailed early enough for transmission on the
day following the dishonor.
These are legal propositions well known to
all.
It would seem, therefore, that in applying such familiar principles to a
note payable on demand, that the only point necessary to decide would be,
when may we consider such a note to be due. If it is due at once when
given, why should not the demand for payment be made and the protest
served at once, that is, within a reasonable time ? That such a note is thus
due the day it is given has been many times decided by our courts, and
whether demand is made or not the statute o f limitation begins to run
from the date o f the note.
( W en m an v s . Mohawk Insurance Co., 13
W e n d . 267). W e would naturally conclude, therefoere, that as the note
is due immediately, the demand should be made and protest served im­
mediately. Such has beeD the conclusion in many States.
But in the case above referred to, our Court o f Appeals has held that a
note payable on demand with interest is a continuing security ; an indorser
remains liable until an actual demand is made, even i f the holders were to
wait several years before making the demand. In the action decided, for
instance, the note was dated May 5, 1852, and the demand was not made
until the 24th o f December, 1855. W e produce an extract from the opin­
ion o f the Court to show tlie grounds o f its decision, and it will be seen
from it that a very proper distinction is made between demand notes pay­
able with and without interest. The Court sa ys:
“ A demand note may be payable with or without interest. I f the se­
curity be not on interest, it may be a fair exposition o f the contract to hold
that no time o f credit is contemplated by the indorser, and that the de-




Journal o f Mercantile Law.

1862.]

391

mand should be made as quickly as the law will require upon a check or
sight-draft. Such a note, payable at a bank where the maker keeps his
funds, will perform essentially the office of a check, imposing the duty of
early presentment in order to hold the collateral parties. Drafts or checks
are, however, almost universally used in such transactions. But, whatever
may be the rule where the security is not on interest, we think that a note
payable on demand with interest is a continuing security, from which none
of the parties are discharged until it is dishonored by an actuel presentment
and a refusal to pay.
The loan or forbearance of money may be for a
definite or an indefinite time. If the parties declare in the written instru­
ment, which is the only evidence of their agreement, that the money shall
he paid on call, with interest in the meantime, a productive investment of
the sum for some period o f time is plainly intended. What, then, is that
period ? The only answer which can be given is, that it is indefinite or in­
determinate, and ascertainable only by an actual call for the money ; and
if that be the meaning o f the principal parties, the indorser must be
deemed to lend his name to the contract with the same intention. The
only rational alternative is, that the payee or holder of such a note must
demand its payment on the same day, or the day after, he receives it, un­
less some necessity or convenience of his own will excuse no longer delay;
and he must give immediate notice of the refusal to the indorser. But
a demand thus quickly made would probably, in every case, violate the
actual intention of the parties, and it ought not, therefore, to be required
as a rule of law for any collateral purpose. It should not be required in
order to charge an indorser, if the act would not be consistent with the fair
interpretation of the principal contract. In short, we see no good reason
why a note, like the one now in question, should not be construed pre­
cisely according to its terms ; and if we follow that construction, auch in­
struments are not dishonored by the mere effluxion of time which is pro­
vided for in their own language.”
It should be mentioned as a further fact in this case, that interest on the
note was paid regularly each year.

STATUTE OF FRAUDS.
THE W O R D S “ F O R V A L U E
N O TE, A R E

A

R E C E IV E D ”

IN

A

S U F F IC IE N T E X P R E SS IO N

GUARANTY
OF

TH E

OF

A

P R O M IS S O R Y

C O N S ID E R A T IO N .

O n page 582, vol. 45, of the Merchants' Magazine, we made some re­
marks upon the provision of the Statute o f Frauds requiring a promise to
answer for the debt of another person, to be in writing, and to have a con­
sideration to support it. A guaranty is an engagement o f this nature, and
must therefore be right in these particulars. Of course, as we stated in
the article here referred to, where the promise is an original undertaking—
or where the original debt and the guaranty are contemporaneous, no other
consideration is necessary, than that which moves between the creditor and
the original debtor. But if a promise of guaranty be made in respect to
a debt which is already incurred, it will be void tor want of consideration,
unless there be some new consideration to support it. These points, how­
ever, we do not propose to notice farther, as they were fully discussed in
the former article.




392

Journal o f Mercantile Law.

[October,

Y et there is one other important particular which must be remembered.
N ot only must the guaranty be in writing, and have a consideration to sup­
port it, but the consideration itself must be stated in writing. This con­
struction— that is, that the consideration as well as the promise of guaranty
must be in writing— has been given to the Statute o f Frauds in England,
and has been adopted in New York, New Hampshire, South Carolina, and
some other States, but we believe that Massachusetts, Maine, New Jersey,
North Carolina, and Connecticut have adopted the opposite construction,
and require that only the promise of guaranty, and not the consideration,
need be set forth in the writing.
W e now have, however, a decision o f the Court of Appeals of New
York State, (M iller vs. C ook 22, N. Y. Reports 495,) expressly deciding
that where the words “ for value received” are in the written guaranty,
they amount to a sufficient expression o f the consideration. That is, it is
not necessary even in New York to state in the writing what the considera­
tion is, but to set out that there is one, by inserting the words “ for value
received.” This point has been one of some doubt heretofore, (although
we have several adjudications upon it,) but we are glad that it has now been
deffinitly decided by our court o f last resort.

MO MORE SAILORS DESERTING AT SAM FRANCISCO,
The San Francisco Bulletin, o f a late date, tells us that “ W h en the
clipper ship Rambler arrived some time ago from Boston, some seventeen or
eighteen of the sailors deserted, but three o f them were arrested and are
still in custody. Captain C arlton of that ship drew a pistol on one of
the runners who was inducing the sailors to run away, and he was arrested
for assault with a deadly weapon, but upon hearing the facts, Judge C owles
decided that he had a right to use such means to detain his men, who had
shipped for an eighteen months’ voyage, or from Boston to San Francisco
and back. Some o f the sailors then wanted to libel the ship for their pay,
but United States Commissioner C hevers, before whom the case was
brought, gave them no satisfaction, deciding that they, as deserters, were
entitled to no pay. Then they brought the matter before Justice C arman’ s
Court, in another shape, but failing here, they again tried to libel the ship
for wages, this time going before United States Commissioner H yde.
Again they were unsuccessful, and as a last resort, the three deserters who
were arrested petitioned Judge R eynolds for a writ o f habeas corpus, which
was granted, and they' were present in the 4th District Court room when
the matter was argued and submitted by counsel. Judge R eynolds has
now remanded them to custody. This, we believe, is the first case o f the
kind that has been brought before our courts in so many shapes, and so
toughly contested. The result will be beneficial to the interests o f commerce,
for the owners o f ships are averse to sending their vessels hither, on ac­
count o f the certainty o f losing their men by desertion, which involves both
loss o f time in getting new ones, and loss o f money- The owner o f the
Rambler, for instance, loses many thousands o f dollars by the desertion of
the crew, who were employed in Boston for $12 per month, and whom he
will have to replace (with the exception o f three) with men who will charge
$30 or $35 per month.”




1862.]

Journal o f Mercantile Law.

393

A QUESTION OF « COMMERCIAL MORALITY.”
The ease o f Behrens and others vs. Allen has been heard in one o f the
English courts. It was an action to recover damages for two libels pub­
lished in the Manchester Guardian, and the defendant in addition to “ not
guilty,” pleaded that the alleged libels were true in substance and in
fact.

Mr. S erjeant Shee, Mr. E dward J ames, Mr. P ope, and Mr. B ijti.ee
R igby , appeared for the plaintiffs; and Mr. B ovill, Mr. H awkins, and
Mr. J. A . R ussell were for the defendant.
The case for the plaintiffs was, that they were merchants and commission
agents, in business at Bradford and at Manchester, and the firm consisted
of four brothers, who were natives o f Hamburg, but who had been estab­
lished for twenty-nine years at Bradford, and twenty-two years at Man­
chester. They were in the habit o f sending silk, linen, and cotton goods
to all parts o f the world, and their annual returns were about £4 00 ,0 00 .
Messrs. D alton B rothers were the sons o f a gentleman who was formerly
in business very extensively as a printer o f cotton goods, but who had
retired, and was supposed to possess great wealth.
The course o f the
trade o f the sons was to purchase gray cloths, and to get them bleached
and printed according to their own designs. In June, 1860, the firm be­
came D altons & H eap , and their credit was untarnished until they failed
for £ 7 8,00 0. An examination took place in the Bankruptcy Court, and
on the 17th o f October, 1861, there appeared in the Manchester Guar­
dian the first libel now complained of. [The article referred to statements
made in the Bankruptcy Court that the bankrupts had bought gray cloth
goods, and sold them a few days afterwards at a considerable reduction to
Messrs. B ehrens, and after stating the circumstances, said— “ Such is the
disclosure to which we wish to call attention as having been made in these
proceedings. It exhibits no isolated case in making a ‘ good bargain,’
such as necessity on one side and ready money on the other often bring
about, without leaving any reflection on the parties, but points to a regular
and systematic course o f transactions which, though probably beyond the
reach o f the criminal law, were clearly inconsistent with honest trading.
W e have a firm o f colico printers purchasing gray cloths on credit, and
selling them at a loss for cash, and we have an agent always ready to ac­
commodate them by purchasing. The question may yet be raised wdiether
the latter cannot be made to restore the goods obtained in this way from a
house evidently on the high road to bankruptcy ; but it is plain enough
that it was his instrumentality which allowed the rotton business to go on.
And just as the Fagins o f a lower rank in the social scale are justly visited
with severer reprobation than the artful dodgers whom they train and en­
courage, so here we conceive the commercial community may properly
show its blame o f the practices acknowledged by the Messrs. B ehrens.
Can it not, we should ask, find some practical means o f giving expression
to its displeasure ? The Jockey Club can exclude a black sheep from N ew ­
market, and we believe some o f the societies o f London merchants, holding
their exchanges at the various coffee-houses, can keep their places o f resort
free from company they do not like. May not their example be imitated
with advantage to the respectability o f the Manchester Exchange ? W e
only throw out the suggestion as offering one method o f punishing offences
against the ordinary rules o f trade such as those we have been here con-




394

Journal o f Mercantile Law.

sidering.” ] After this publication the plaintiffs offered their books for
examination by Mr. W illiams, who wrote commercial articles for the paper,
upon the condition that if he was satisfied that the transactions were cor­
rect, the editor should state this, and express regret for his error. The
offer was not accepted, but Mr. B ehrens was told that any letter he wrote
in explanation would be inserted in the paper; and he did in fact write
two letters which were published in the paper. The plaintiffs also offered
to have the circumstances investigated by the Chamber of Commerce, and
they further advertised, complaining of the false and calumnious charge
made against them, and challenging investigation. Another meeting took
place in bankruptcy, and on the 2-tth October the second libel was pub­
lished. [This consisted of a comment upon the later circumstances, and
the writer, in substance adhered to what he had said before, refusing to
retract or apologise, and said that the plaintiffs might appeal to the law.]
A vast mass of evidence was laid before the jury, principally upon the
question whether there was or not any impropriety in the dealings of the
plaintiffs with Messrs. D alton & H eap, and the case occupied three entire
days.
The jury, after considering the matter for a short time, found a verdict
for the plaintiffs, damages £1000— thus pronouncing the dealings proper.
Such may be English “ commercial morality,” but we believe the American
article is judged by a higher standard.

PROMISSORY NOTES MADE IN KENTUCKY AND PAYABLE IN NEW YORK.

W e have received from a correspondent at Lousville, the following note
of an important decision made there. (M uiiling vs. L attler, & c., I l l
Metcalf’ s Rep,)
Suit was brought on a writing in the form of a promissory note, drawn
by the defendant, payable to the order o f himself, and by him endorsed
to plaintiffs. The writing was executed in this State, but is made pay­
able and negotiable at the office of plaintiffs in the city of New York.
Chief Justice Stiles held, that the note or writing does not, o f itself, im­
pose any legal liability upon the makers in this State; it is not negoti­
able paper, and has none of the attributes of a bill of exchange. The
utmost effect that can be given to it is, to admit it as evidence of previ­
ous indebtedness of the maker and endorser to the endorsee, when exe­
cuted with the intent o f binding the maker for the payment of such pre­
vious indebtedness and on account thereof. And, not then, unless it was
averred that it was thus executed and delivered.




1862.]

MERCANTILE
1. A n

E a s t I n d ia n

395

Mercantile Miscellanies.

Coal

M in e .

2. F r e n c h

MISCELLANIES.
Coal.

3. T h e

S ecret

P ow er

of

th e

B r it is h

N a t io n .

AN EAST INDIAN COAL MINE.
D r . S amuel L illy , Consul-General to India, has written a letter, des­
criptive o f a coal mine which he visited, to his friends in the United
States. The mines are in the Raneegunge coal field, which is tapped by
the East India Railway, and in which, in 1860, there were 49 collieries
in operation, the join t production whereof was 305,682 tons.

The following is a portion of the letter referred to above :
Calcutta, March 14, 1862.
“ During .my trip I visited the Bengal Com pany’s coal mines at Ranee­
gunge, some 180 miles northwest o f this. The region is a hilly one,
washed, or rather drained in the wet season by streams which are now
nearly or quite dry. The surface is barren, except in the wet season,
when, by securing the water in pools, some rice and a few vegetables are
raised. The overlooking rock at the mines is a micaceous sandstone and
quite soft. The opening I visited has been worked a number o f years,
and is entered by 130 steps cut in the rock, the overlying portion of
which was taken o ff; in other words, instead of g oin g down a tunnel or
slope, as in your region in a car, we walked down an open staircase.
The vein worked is about seven feet th ick ; the coal is bituminous in
character, but no skill or science has as yet been able to coke it. The
coal is hauled from the breasts, say where now worked, some threefourths o f a mile in a hand-car, and hoisted up in baskets perpendicularly
by gins turned by women, or drawn up by steam by a chain working
over a pully and cylinder to the surface , when it is placed in railroad
cars to be sent to market. The mines are perfectly dry, and even dusty.
A gang o f miners consists o f ten persons, a portion o f whom are women.
These gangs mine 100 maunds each on an average. A maund is 80lbs.
The miners work with bar and wedges, no powder being used. A very
smart active miner will sometimes earn eight annas per diem, but many
do not average m ore than one-fourth that sum, so that the pay is from
six to twenty-four cents per diem for each person. All these are natives
o f cou rse; and I am told by the superintendent, a very intelligent man,
that it is impossible to introduce any improvements in mining. There
are a number o f collieries worked in this country, but the one I visited
is almost tire only one which pays dividends to the stockholders. This
coal is used for steam and culinary purposes, and is sold in California for
five to seven annas per pound, whilst English coals sell for nine annas.

I am told that some mines in the eastern portion of Bengal yield a coal
similar to the Welsh semi-anthracite, but there being no facilities for
getting it to market, save the uncertain one o f rivers, which are nearly
dry a large portion of the year, it does not pay to work them. Railways
are being constructed and the country opened up, so that it is thought in
a few years they will be brought into profitable use and the English coals
driven entirely from the market. Iron, copper, &c., abound in some




,\

396

Mercantile Miscellanies.

[October,

regions, but as there is no limestone in convenient proximity, and tbe
coals not being cokeable (I invent a term), they are not worked to ad­
vantage. A ll these defects are being remedied, and it is believed that a
bright future is open to various metalurgic operations in India.
The railways are constructed very substantially and at great cost.
The East India Railway which extends some 1,000 miles N. W . from
here, is to be a portion of the line connecting Calcutta and Bom bay.
It is now open to M onghyr, 304 miles. I went to that place. The
country through which it passes is a vast plain, traversed by some
streams which are from one-half to one and one-half mile wide in the
rains. The most o f the masonry and the ballast o f the road is formed o f
bricks. Near M onghyr there is an upheave o f nearly pure flint rocks
which crosses the plain ; it is som e 300 feet in height, and, as it is very
abrupt in its margins, the road traverses it by a tunnel 900 feet in
length. I did not learn the cost o f making [the tunnel, but I did learn
that two or three sets o f contractors were ruined by it, and the Company
finished it themselves. The engines and carriages are all in the English
style, the former being built in E n glan d; all tbe material for the track
is im ported from there, to even the cross-ties and chairs.”

F R E NC H COAL.
For many years the belief in France was that French coal was totally
unsuitable for the steam engines o f vessels, and in consequence, English
alone was em ployed. But latterly the discovery has been made that
the French coal can be employed to advantage, and the probability
accordingly is that the English will be set aside. In a recent number
o f a newspaper o f Lorient is this paragraph:— “ French coal has com ­
pletely replaced English in the Imperial navy. Our port receives every
day considerable supplies from the mines o f L o ir e ; they are brought to
Lorient by canals and rivers. Thus the problem which has been so long
discussed as to the supply o f the navy has been solved to the advantage
o f French coal, which can now, with some modification in the apparatus
for burning, be substituted in all circumstances for the fuel w hich hereto­
fore we have brought
from England.”
o
O
THE SECRET POWER OF THE BRITISH NATION,
One o f the representatives o f the continental press at the International
Exhibition, after wondering where the secret power of the British nation lies,
traces it to their ravenous stomachs : “ Deprive,” says he, “ an Englishman
o f his strong appetite, that enables him to digest bleeding meat or highlyspiced rounds o f beef, and you deprive him o f all incentive to action, if he
be o f Saxon race, for the descendants o f the Normans are yet greedy o f
power. H e does not care for society— he has no ambition to please— his
indifference to glory is so great as to become contemptuous, and he scorns
the artistic French and Italians as dillettanti, so insensible is he to the fine
arts. H e is without a spice o f gallantry in his composition, for the most
beautiful women in the world are grossly neglected for the club, the bil­
liard-room, or the ring. Hunger is his great stimulant to activity, and ap­
petite pushes on this extraordinary people to execute the most gigantic
enterprises.




1862.]

The Book Trade.

THE

BOOK

367

TRADE.

The Tariff Question Considered in regard to the Policy o f England and the in­
terests o f the United States ; with statistical and comparative tables. By E rastus
B. B ig e lo w . L ittle , B r o w n <&Co., Boston. D. A ppleton & Co„ 443 Broadway,
New York.
In these times of great excitement, when the “ On to Richmond ” furor absorbs so
large a share of our dreams, both sleeping and waking, books with modest titles are
not apt to receive proper attention. The author of this work, however, is so widely
known as a skilful and successful inventor, and so well fitted by his own experience
to discuss in an intelligent manner subjects affecting our manufacturing interests, that
we trust an exception will be made in his favor. In regard to the general topic of
free trade and protective tariffs, one would be inclined to think that little new could
be said, and yet Mr. B ig e l o w throws about his subject great interest, and backs up
his arguments by elaborate and well prepared tables. The present, too, is a time
when these questions are invested with additional importance, by reason of the late
chauges made in our revenue laws, and the peculiar position of our country. But we
do not propose here to discuss these matters. W e would refer our readers to this
book for much that is interesting and valuable, whether they agree with the conclu­
sions reached or not.
W e subjoin the following, taken from the author’s introductory notice, which will
explain more fully the object and scope of the w ork:
“ The vast and various commerce of Great Britain, and our own intimate relations
with that commerce ; the general tone of British statesmen and of the British press
in reference to the commercial regulations of other countries ; the zeal and pertenacity with which the free trade maxims and example of that great nation are com­
mended to our adoption and imitation, not only by Englishmen, but by many among
ourselves— all unite to give especial interest and importance to the policy of England
in regard to the Tariff Question. To understand that policy, we must study its his­
tory, and learn in what circumstances and by what necessities it has been modified
and developed. To ascertain how far and in what particulars the political and com­
mercial economy of Great Britain can be safely taken as a guide to that of the Uni­
ted States, we must know and be able to compare the actual condition of the two
countries in respect to their agriculture, manufactures, commerce, industry, and
finance.
“ To aid in such an investigation, and to furnish the basis of safe inference and ar­
gument, I have put into tabular form, in an appendix, the most important facts in the
case. These tables are, for the most part, not mere copies or abstracts, but the re­
sult of labored and careful selection, comparison, and combination.”
They present, it is believed, a mass o f valuable statistics, essential to a right under­
standing of the Tariff Question, and nowhere else to be found in so accessible a form.
Rifle Shots at Past and Passing Events. A Poem in Three Cantos. Being Hits
at Time on the Wing. By an Inhabitant of the Comet of 1861. Philadelphia:
T. B. P eterson tfc B roth er s . Price twenty-five cents.
A thoroughly mysterious volume as to origin, but supposed by competent judges
from the manner of shooting and failure to hit, to emanate from one of the deceased
sportsmen of the Pickwick Club, possibly from the lamented Winkle himself. The




398

[October, 1862,

The Book Trade.

lifelong proclivity to bag game has been developed, by the extended opportunities of
a freed spirit, into a wider ambition, still hampered however, as upon earth, with the
most desperate luck.
The Charmings. A Domestic Novel o f Real Life. By Mrs. H en ry W ood . Author
o f “ The Earl’s Heirs,” “ East Lynne,” &c., Ac. Philadelphia: T. B. P eterson &
B roth er s . Price, fifty cents.
W e had occasion in one of our late numbers very briefly to mention “ The Channings.” A better acquaintance with the book, however, proves it worthy o f a better
notice, and we are always glad to render justice to merit of any kind. Hitherto we
have not been especially pleased with Mrs. W ood ’ s productions; while they con­
tained much that was attractive they failed to awake aDy particular sympathy or
approval.
People who have never been murdered, poisoned or clandestinely mar­
ried themselves, and who have no intimate friends who have suffered in that way,
can hardly be expected to appreciate fictions founded solely upon these mild errors
and their results. “ The Channings” is of an altogether different stamp, and is de­
cidedly superior to all of the other works of this authoress which we have yet seen.
The plot is a quiet story o f probabilities; the style agreeable and sprightly, and the
moral excellent without being dulL Many o f the characters are very good, especially
Arthur, the Jenkinses, and Roland Yorke, and the boys are thorough boys, and not
stuffed roundabouts. A few more books like the “ Channings” would deprive Mrs.
W ood of the somewhat equivocal title of a sensation novelist, and would win her a
wider and higher name.
1. The Yellow Mask : or the Ghost in the Ball-Room.

By W il k ie C o llin s . Au­
thor of “ The Woman in White,” “ The Dead Secret,” etc. Ac- Philadelphia: T.
B. P eterson & B r o t h e r s . Price, twenty-five cents.

2. Sister R ose: or the Ominous Marriage.

By the Same.

3 . The Stolen M ask: or the Mysterious Cash Box.

Price, twenty-five cents.

By the Same.

Price, twenty-

five cents.
The scenes of these three new books of W il k ie C o llin s , are laid in widely different
localities. “ The Yellow Mask” is a little Italian intrigue with a few dashes of priest­
craft and artist life. “ Sister Rose” is a story of the days of the French Revolution,
and painful as all such stories must be in a greater or less degree. “ The Stolen
Mask” is a tale of simple English life, hearty and genial, and in our judgment by far
the most agreeable of the three.
New American Cyclopedia : A Popular Dictionary o f General Knowledge. Edited
by G eo rg e R ip l e y and C h a r le s A. D an a . Vol. Fifteenth. Spiritualism— Uzziah.
New Y ork: D. A ppleton <Sl Co., 443 & 445 Broadway. London: 16 Little Britain.
1862.
A new volume of the Cyclopedia invariably receives our cordial welcome and
close attention, because it is invariably worthy of it. The present one contains among
many others, articles upon Steam, Stammering, Stereoscopes and Fort Sumter,
upon the Telegraph, Telescopes, Thermometer, and Tides, besides innumerable bio­
graphical notices of eminent persons. Conspicuous among the latter are those of
Madame de Stael, tho two Stevensons, Sterne, Steele, Swedenborg, Swift, Talley­
rand, Tasso, Thierry, Thorwaldsen, Titeall, De Toqueville, Turenne and Turner. As
many of the best writers of the country are engaged upon this work, it is hardly
necessary to add, that all the articles, embracing as they do, nearly every department
of human knowledge, are treated in a scholarly and able manner.




THE

MERCHANTS’ MAGAZINE
AND

COMMERCIAL

R E V I E IV.

E s t a b li s h e d J u l y , 1 8 3 9 .

E D IT E D B Y

W ILLIAM

VOLUME X L V II.

CONTENTS

B.

DANA.

OCTOBER, 1862.

OF

No.

IV.,

NUMBER IV.

VOL.

X L V II.

A rt.

fau z.

I. GENERAL A V E R A G E S CONSOLIDATION............................................... S05
II. PACIFIC R A IL R O A D — CONVENTION OF CORPORATORS, speech
OF S. DEWITT Bl.OOI)GOOD. ESQ., OF NEW TORE....................................................... 313

III,

DISTILLATION OF PETROLEUM............................................................... 326

C O MME R C I A L C H R O N I C L E AND R E V I E W .
Business— Government Demands— Deposits— Government Paper— Taxes—Ef­
fect on Manufactures— Importation—Duties— DemandNotes— Imports— Ex­
change— Exports— Specie— Grain— Harvests Abroad—More Grain for Less
Money— Cotton Imports into Great Britain— Receipts from the United States
— Exports of Cotton Goods— Rise in Cotton— Specie Movement— Efflux of
Gold— Breadstuffs as a Remittance— Effect on Stocks— Comparative Rates
— Aggregate Export of Gold— Deposits at the Banks— Specie in the Banks
— Their Profit on the Rise— Government Interest in October— Specie in
France and England— Influence o f the India Trade— Indian Demand for
Specie— American Gold to buy Indian Cotton— Government Receives Gold
on Deposits— The Course of Political Events..................................................... 333




400

Contents o f October N o., 1862.

COMMERCIAL

REGULATIONS.

1. The Tax on Manufactured Goods. 2. Legal Tender Notes in Chicago without
the Treasury Department Stamp. 3. The Duty on Chain Cables and other
Articles. 4. Foreign Bondholders and the Tax Bill. 5. Palmyra Island.
6. Regulations for Trade on the Mississippi River. 7. Chicago Currency.
8, Commissions to Purchasers of Stamps. 9. Debenture Certificates........... 341

STATISTICS

OF T R A D E

AND

COMMERCE.

1. Commerce of the United States. 2. Production of Breadstuffs. 3. Export of
Breadstuffs from the United States, 1862. 4. The New Mexico Wool Trade 348

TIIE C O T T O N Q U E S T I O N .
1. The Cotton Crop of 1859-60. 2. Cotton from Trinidad. 3. A Substitute for
Cotton. 4. Royal Commission on Cotton. 5. Africa as a Cotton Field.
6. Cotton Cultivation in India................................. ............................................. 358

RAILWAY,

CANAL,

AND

TELEGRAPH STATISTICS.

1. Railroads of the United States—Census Report. 2. Railroads in France in
1862. 3. The Atlantic Telegraph. 4. New Telegraph Lines....................... 364

JOURNAL

OF I N S U R A N C E .

1. Marine Losses for July and August.

STATISTICS

2. Insurance Companies— War T a xes.. 310

OF P O P U L A T I O N .

1. Population of the United States according to the Eighth Census. 2. The Flow
of Population to the Suburbs of London and Liverpool................................... 312

J O U R N A L OF B A N K I N G ,

CURRENCY,

AND F I N A N C E

1. City Weekly Bank Returns, New York Banks, Philadelphia Banks, Bos­
ton Banks, Providence Banks. 2. Weekly Statement Bank of England.
3. Banks—Census Report. 4. Paper for Bank of England Notes Stolen.
5. The First Paper Mones in Europe. 6. The Banks and the Tax Bill. 378

JOURNAL

OF M E R C A N T I L E

LAW.

1. Promissory Note Payable on Demand. 2. Statistic of Frauds. 3. A Ques­
tion of “ Commercial Morality.” 4. No More Sailors Deserting at San Fran­
cisco. 5. Promis_sory Notes Made in Kentucky and Payable in New York.. 390

MERCANTILE

MISCELLANIES.

1. An East India Coal Mine. 2. French Coal. 3. The Secret Power of the
395
British Nation.......................... ................ ..............................
................... ..

T n E BOOK

TRADE.

Notices of New Publications in the United States..................................................... 397