Full text of The Merchants' Magazine and Commercial Review : September 1864, Vol. LI, No. III

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MERCHANTS’ MAGAZINE
AND

COMMERCIAL REVIEW .
S E P T E M B E R , 1 8 6 4.

A VOICE FROM THE W RECK.
T he collapse of the inflated paper issues of Mr. C ha se has only added
to the experience of the past a new illustration of the weakness and
wickedness of such a system. The Treasury has been run ashore and
abandoned by its director amid the breakers of public opinion. But now
a solitary voice, through the Times, hailing from “ the beach,” rises in
shrill and discordant tones above the sounding waves of public indigna­
tion, in denunciation of this Magazine, for non-approval of the disasterous
end of this unskilful pilotage.
A similar defence, years since, was made in favor of the Barnegat
Pirates, who, by false lights, decoyed the noble merchant ships ashore on
that beach for plunder; and our assailant, not inappropriately, dates his
tirade “ the beaches” where the Federal Treasury is foundering, the prey
of the exulting parasites that have'lured it to destruction. This critic
takes great umbrage that we should have presumed to doubt the indefea­
sible right of persons, who have read a few law books, and who base a
claim thereon to be lawyers, to govern the country, to the exclusion of all
other classes. It is the first time certainly that we have ever seen the
pretension so audaciously put forward. We know that the country
swarms with people who have a smattering of law, but who are destitute
of any useful species of learning, and whose abilities encompass only the
chicanery and knavery of the lower walks of the profession, enabling them
to prey upon society and keep out of the grasp of the law themselves.
W e know, also, that this pestilent class is the curse of all elective coun­
tries ; their ill employed and ill paid time enabling them to beset primary
meetings, and worm themselves into most of the nominations: and hence
they are elected to most of the offices; not because they are selected by
the people, but in despite of them. W e know that this country and its
glorious institutions was brought into being by such men as W ashington
and F ranklin , the one a printer and the other a surveyor; and we know
that the glorious heritage of our government has been well-nigh destroyed,
step by step, as it has fallen more and more completely into the hands of
VOL. LI.— NO. III.




11

178

A Voice from, the Wreck.

[September,

intriguing, unscrupulous and selfish men, whose legal knowledge has been
acquired mostly in the squabbles of village pot-houses.
So long as great and learned lawyers, jurists, statesmen and patriots
bad influence in the councils of the nation, its interests were safe, but
when C lay , W ebster , C alhoun , M cD u e fee , M angum , C ass , B enton ,
&c., &c., gave place to the mountebanks who occupy the hours of the
Senate wdth their drunken antics, the fear of approaching national disso­
lution seized upon every patriot.
W e do not of course mean to intimate that our present Treasurer is of
this latter class. Very far from it. As we said in our former article, so
we think now : that “ if the country is fated to be ruled by lawyers in all
its departments, perhaps Mr. F essenden is as good a choice as may be
made.” Our objection to him was, however, that he was merely a lawyer
—that he was not a practical financier. W hat immense interests are now
dependant upon the right management of the Treasury department! W e
are at this moment raising and spending more money than any other
government on the face of the earth. Does it not stand to reason, then,
that a man who has made the science of finance and trade his life work,
would be better fitted for that position than a mere lawyer? W e have
no objection to his being learned in the law, or to his having had large
experience as a physician, or being well skilled in navigation; but we do
most decidedly object when we are sick to have a mere lawyer called to
prescribe; or, when we have a vessel to navigate, to have a judge ap­
pointed captain; or the finances of a country to manage, yes, to save
from ruin, to have the trust conferred upon one whose life has been spent
hunting up and applying legal precedents. There are hundreds of mer­
chants and bankers in this city to-day better qualified, by education and
life-long experience, for managing the finances of the country at the pre­
sent time, than the best mere lawyer in the la n d : and we think that the
appointment of such a man would do very much towards restoring confi­
dence. Our Government, now in particular, requires, if it is to be well
conducted, that each department should be presided over by a person
fitted, by education and experience, for the peculiar duties he is called
upon to perform.
To illustrate this idea further, take the war department as an instance.
Is it not self-evident, that while a terrible war is being carried on, making
necessary the employment of a million of men, that to properly manage
that department requires some knowledge of war as a science, and some
familiarity with the organization of men and the mathematical sciences ?
If we look back at the French revolution, who was the chief that carried
the Republic through the fearful dangers of its early efforts ? Happily
the knot of half educated and knavish lawyers who thrust themselves into
the Assembly— the contemplation of whose characters caused E dmund
B urke to despair of France,—had the wit not to interfere with the able
men at the heads of the departments. C arnot , the profound engineer
and accomplished mathematician, saved France by his powers of organiz­
ation. “ C arnot,” said N apoleon , “ organized victory.” His hefbulean
labors, at the moment when the old system fell into ruins, and the popu­
lation rose en masse to defend France, organized one million of men into
fourteen armies, and made head against a host of foes that engirdled
France. R obespiere more than once regretted that his own inability to




/

1864.]

A Voice from the Wreck.

179

supply the place compelled the retention of C arnot in the Committee of
public safety; but those mad men had the cunning to recognize the ne­
cessity. Had they picked up some pettifogging lawyer, or even one
learned in the law, to supplant C arnot , in the Military Committee, the
French Republic would never have existed. Nevertheless, it was ruined
in spite of C arnot , by the C ha se system of Finance, which our assailant
in the Times now seeks to defend.
He has, however, a very dim notion of what we did say, and quite as
dim a notion of what he wants to say himself; and is altogether at fault
as to what constitutes the property of a nation. As inaccurate ideas
seem to possess many people upon that point, we avail ourselves of this
attack by Mr. C hase ’s employee for a few words in explanation. The
wrecker rem arks:
“ What is the patrimony of a country ? Its actual prosperity and credit derived
from ancestors. Pray what has Mr. Chase done to waste the property and credit of
this nation ? All his acts are acts done under the laws passed by Congress, and ap­
proved by the President. But the Magazine probably means that he had it in his
power to pursue a different policy, and the policy he did pursue was erroneous.
Well, let us examine that, in the light of notorious facts. 1. The property of the
nation is exactly where it was. It consists of lands, forts, docks, buildings, mines,
forests, Ac., Ac. The wild lands alone are estimated at the minimum value of a
thousand millions o f dollars. The right of the Government in the mines, if put up
at sale, is worth hundreds of millions more, and the various prices of property held
by the Government in the best part of the cities and towns of the country is unques­
tionably worth an immense sum. Probably the Government holds at least two thous­
and millions of dollars in property. This is its actual patrimony. Has Mr. Chase
wasted one dollar of that patrimony directly or indirectly ? No intelligent man will
pretend any such thing. The Magazine probably means that he has wasted the credit
of the country, for property and credit are the only things which compose a patri­
mony. It is rather a far-fetched meaning, but, since E dmund B urke called the know­
ledge of a nation a part of its patrimony, we may consider credit so also. What, then,
has Mr. Chase done to waste or injure the credit of the nation ?”

The first point here is the effort to relieve Mr. C hase from responsibil­
ity, by putting it upon the laws of Congress. This will not do, however.
Every act of Congress was dictated by Mr. C h a se . Not only were bills
drawn up in the Treasury Department, and sent to Congress directly, but
bills were also sent to the Ways and Means Committee for them to report
for immediate passage, as if they had been previously before the House.
A notable and late example of this complete subserviency of Congress to the
late Treasurer may be seen in the action on the gold bill, which Mr.
C hase had caused to be passed almost unanimously, and which, three
weeks after, was repealed by as large a vote, and by the same members,
they stating in excuse that they had voted for it at the request of Mr.
C hase , without knowing anything about it. Indeed, Mr. C hase himself,
in his speeches in Ohio last year, claimed the whole credit of the policy.
The burden of his song was what “/ did.”
The other point in the paragraph is the confounding of the “ patrimony
of the government” with the “ patrimony of the nation.” We simply
stated in our article, which he criticises, that the late Treasurer had
squandered the latter. This apologist of Mr. C ha se , however, has so
dim a notion of what constitutes national means, that he talks alternately,
and as if they were synonymous terms, of the property the Government
holds, and of the property of the nation. The former consists of wild




180

A Voice from the Wreck.

[September,

lands, custom houses, post offices, navy yards, ships, dry docks, public
buildings, the W hite House, the national capital, &c., &e., all of which
have gradually been acquired in all the States by expenditure during two
hundred years, mostly within the last thirty years. This is the patri­
mony or property of the government, and of no avail whatever in pay­
ment of debts, as a moment’s reflection will show.
B ut the property or patrimony of the nation #5 a very different thing.
It will be observed that when Mr. C hase began lavishly to contract debts
he began to pledge—what ? Not the W hite House, &c., &c., but clearly
the annual earnings of the people ; the annual production of the soil; the
proceeds of popular labor, in perpetuity to the discharge of those debts,
principal and interest. The amount of property held by the Government,
or the land it owns, has no applicability whatever to the matter. Thus,
the national capital cost several millions; in what manner can that be
made applicable to the payment of a debt? Is it to be sold to the French
Emperor, or the King of Dahomey for his amazon warriors? Are the
custom houses, and light houses, and ships of war, to be sold ? Equally
foolish is the talk about wild lands. “ The wild lands alone are estimated
at the minimum value of a thousand millions.” Well, suppose they are,
what is that to the public creditor? How is he to get his money out of
it ? Those lands were there in the time of Noah, quite as fertile as
now. The Federal Government owned them at the close of the revolu­
tionary war, in addition to the vast tracts now occupied by Ohio and
other Western States ; but the unfortunate holders of Continental money
were none the better for it. The credit of the Federal Government does
not depend upon that description of ownership. Thus our critic makes
several guesses as to what the “ national patrimony ” is, but does not
succeed in reaching the point.
W hen this people took possession of this continent they acquired a
vast tract of land, which, with the air above it and the water through it,
was a fertile instrument of future wealth. Combined with human labor, an
annual valuable product was secured. Of this a very large proportion was
necessarily consumed by the producers. There remained, however, a sur­
plus each year. This accumulated from year to year, and supplied man­
ufactures ; a portion of the profits from which was, also, annually saved.
Surplus food was sold abroad, immigrants arrived with capital, and the
savings began to manifest themselves in accumulated stocks of goods, fur­
niture, bank stocks, company stocks, railroads; and, finally, in 1860, the
total amount of these savings in the Northern States, amounted, per cen­
sus, to $2,632,709,497. This sum, the aggregate savings during more
than 200 years of the annual earnings, constitutes the “ national patri­
mony.” It is the fund by which labor is maintained, industry carried on)
and production increased.
It will be here noticed that we have not taken into account the value
of the real state which is sometimes considered a national resource. It is,
however, an error to consider it in that light. The value of real estate
consists only in what it produces. Its actual value is embraced in the
annual production which we have already considered. The value of the
land is proportioned to its production, and any tax whatever, laid upon it,
must be paid out of that production. As regards individuals, a rise in
the value of land enhances the fortune of the holder. The national wealth,




1864.]

A Voice from the Wreck.

181

however, is not changed by it. The wild lands that were originally the
property of the Federal Government, have been gradually sold at one dol­
lar per acre, until great States have grown up on them, and the valuation
of Illinois land is ten dollars per acre for purposes of taxation. The value
of the land, as property, represents its productive power, and is a capital­
ization of the annual product. If that product fails, the value of the land
fails also. If, by taxation, one-half the product is taken, the land value
falls one-half. It is not, therefore, a sign of national wealth apart from
its annual product.
The nation that held this patrimony, owbd no debt, and there was
drawn from the annual production very little for government taxes. Of
late years the fund has increased with greater rapidity, and if we estimate
that even one-half has been accumulated in the last thirty years, the am­
ount saved will be $43,878,491 per annum. Now it is evident that if the
federal taxes, during that thirty years, had been $40,000,000 more than
they were, there would have been no accumulation o f property, it would
all have been dissipated, or the people would have been compelled to
economise and spend less. This was not the case, however, and that
splendid “ patrimony ” was put into Mr. C hase ’s hands three years since,
and he has contracted a debt nearly equal to the whole of it. If it were
possible to sell out the whole of the personal property of the North, it
would not pay the debt. But that is impossible. The only way the debt
can be paid at all, is to meet it from the annual earnings. These we have
stated at forty-three millions per annum for the last thirty years. If we
allow that they were as high as sixty millions, for the ten years up to
1860, we may, on that basis, form an idea of what will be our future pay­
ments, and what our means to meet them with. And here the voice from
“ the beach” calls in question our statements of the public debt, as fol­
lows :
“ On the 1st day of August, the debt was just seventeen hundred millions and a fra c­
tion, by Mr. F e s s e n d e n ’s statement, including every species of indebtedness; and yet
the Magazine boldly adds three hundred millions to the statement, and says the Gov­
ernment is ‘ almost ’ bankrupt! ”
The am ount of d e b t given in Mr. F essenden ’s sworn statem ent, A ug.
1st, 1864, w a s :
Principal paper outstanding.....................................................$1,827,492,170
Interest on “
“
.....................................................
76,418,085

The claims, unadjusted accounts, arrears, &c., add several hundred mil­
lions to the amount of outstanding paper. Had, therefore, the war closed
the day Mr. C hase resigned, no one can doubt but that the debt would
have reached, if not exceeded, the amount we mentioned. The whole of
this debt must, sooner or later, be funded, and put in train of payment.
If we allow that the whole may reach only $2,600,000 Jan. 1, 1865, and
that it can be funded at six per cent, the annual charge will be
$150,000,000. Mr. C hase , page 12 of his annual report, estimates the
future peace expenditures at $37,604,499 for the civil service, and
$55,845,834 for the army and navy. Tbe pension list will of necessity
be at least $50,000,000, all those items will make a sum of $280,000,000
per annum, to which is to be added one per cent for sinking fund of the




182

A

Voice from the Wreck.

[September,

debt required by law, and tbe annual expense will be $305,000,000, or
five times the amount o f the national savings. And here let us remem­
ber that this enormous debt has been more than doubled by the use of
paper m oney, and this it is that constitutes the great crime of Mr. C ha se .
He knew perfectly well the effect of paper money, and when remonstrat­
ed with on its proposed issue, answered that “ the people would not bear
taxation.”
So this system has been continued and pushed until the whole couutry
is alarmed. Even the Commercial Editor of the Times has begun to per­
ceive that something is wrong :
“ Look,” says he, “ at the figures: a 5-20 bond for $100 costs a foreigner at present
but about $40, and this is all we realize for it in gold. Now, for this, we must pay
an annual interest of $6, or 15 per cent; and, in addition to this, must, at maturity,
pay $100 in gold, or a bonus of $60 for the privilege of borrowing $40, at an annual
interest of 15 per cent. Is not this borrowing at a fearful cost 2”

Such, then, is the position to which this glorious (?) C hase system of
finance has brought us. Surely, in the light of such facts, no one will say
that we spoke too strongly when we stated in our former article that “the
splendid patrimony of the country which, with carte blanche, was put into
Mr. C ha se ’s hands, has, with his manipulations, been so wasted as to leave
the nation now, we might almost say, in a state of bankruptcy.” The
crime, too, was concealed under the pretense repeated by Mr. C hase ’s
agent, as follow's :
11No man, with any knowledge of our public affairs, will deny that the suspension of
specie payments, the issue of government notes, and the loans on bonds, were all ine­
vitable in the progress of a great war.”

A greater fallacy than this was never uttered. The great French re­
public was ruined by the paper system (which Mr.C hase made his model),
in spite of the great abilities of C arnot as Minister of war. A flood of
paper money swept the means of France into the abyss of bankruptcy.
This, however, transferred power into the steady hands of N apoleon ,
who, executing the system of C arnot , while administering the finances
himself, to the rigid exclusion of all paper credits, carried on war twenty
years, and conquered the whole of Europe.
It is sometimes alleged that N apoleon made the war support the war;
this was true only to a very limited extent. His vast armies were put in
motion by taxes in France on a specie basis. In 1804, when the Emper­
or was conducting the campaign of Austerlitz, some of the C ha se school
of speculators, under O uvrard , and other great contractors, combined with
the Reeeivers-General to cajole the Bank of France into such an expansion
of paper as compelled the bank to suspend. At the receipt of the news
the Emperor left the head of his army and flew to Paris. It w>as then
that the rogues advanced Mr. C hase ’s sophistry, that all great wars must
be carried on with paper. For response, the Emperor threw O uvrard
and the rest into prison, confiscated their property, broke the ReeeiversGeneral, annulled the charter of the bank, and organized a new one, which
never faltered in its payments up to 1848. There was no more talk in
France about carrying on war with paper; and, after conquering the
whole of Europe, the Emperor left France with less debt than when he
began.




1864.]

Progress and Resources o f Central B ritish America.

183

W e will add but a word more. Our assailant says, that if what we have
stated is truth, it should not be spoken.
“ But let us proceed to the next proposition, which is, that Mr. C hase has so wasted
the patrimony of the nation, that the country is almost in a 9tate of bankruptcy! I
do not know whether this assertion is most scandalous in the light of truth or patriot­
ism. If it be truth, it is scandalous to p u t it forth in a Merchants' Magazine in this
hour of trial, when the Government is using all means to extend its credit and
power.”

W hat words these are for a man who loves his country to u tte r! Are
we to see a public officer pursuing a policy that will ruin the Government,
and yet not lift our voices in protest ? Criticism may bring about a change
and save u s ; silence allows the evil to continue until all is lost. W e love
our country too dearly; we desire too earnestly that it may be again
united and happy, not to warn those who are sailing our ship of state of
the rocks before them. If it is called “ patriotism ” to keep silence under
such circumstances, all we can say is, God save our poor country from
such patriots 1

THE COMMERCIAL PROGRESS AND RESOURCES OF CENTRAL BRITISH
AMERICA.
THE LAKE WINNIPEG AND SASKATCHEWAN DISTRICTS.

By H enry Y odle H ind , M.A., F.R.G.S., Trinity College, Toronto. (Read before
the Statistical Society of London, 19th January, 1864.)

I .— Resume o f the History o f Central British America to the Year 1858.
A c e n t u r y and a quarter has elapsed since the French Government
sent an expedition from Canada through the interior of the American
continent, with a view to reach the Pacific Ocean by an overland route.
M. d e l a V e r a n d e r i e , the chief of the expedition, did not succeed in
getting as far westward as the Rocky Mountains, but he and his success­
ors constructed a fort three hundred miles west of Lake Winnipeg for the
purposes of trade; and about the same time other fortified trading posts
were established by the French, still further to the west, the most remote
of which was situated near the junction of the north and south Saskatch­
ewan, in long. 103° W .
Prior to this occupation of the Saskatchewan valley, the French had,
successfully, attempted to reach Hudson’s Bay overland, both from the
St. Lawrence and Lake Superior. These expeditions were undertaken
when the population of the whole of Canada was less than one fifth part
of the present population of Montreal, and, consequently, less than onehalf the population of Toronto.
That the early French colonists were pre-eminently distinguished by
their desire for the extension of their territory, the following extracts from
the Paris documents will establish beyond doubt, and at the same time
convey some idea of their activity and enterprise in the infancy of Cana­




184

The Commercial Progress and Resources

[September,

dian bistory, and also of the projects they formed, and the conceptions
they entertained of the extent of the country they intended to colonize as
new France, north of the great Jakes, more than one hundred years ago.
As early as 1646, we read that S ieur B ourdon, with three Frenchmen,
was sent overland from Quebec to take possession of Hudson’s Bay for
France. The French had already established a trade with the Indians of
Hudson’s Bay, and in a few years induced them to come to Quebec to
barter their furs.
In 1661, the Kev. C laude D ablon set out overland for Hudson’s Bay
via the Saugenay, but he succeeded in reaching only the head waters of
the Nebouka, 300 miles from Lake St. John.
In 1663, the Indians of the Bay du Nord (Hudson’s Bay) returned to
Quebec in further quest of Frenchmen, and M. D avaugour sent thither
S ieur de la C outure , with five men, who proceeded overland to the said
bay, possession whereof he took in the King’s name, noted the latitude,
planted a cross, and deposited at the foot of a large tree his Majesty’s
arms engraved on copper, and laid between two sheets of lead, the whole
being covered with some bark of trees.
In 1671, P ere A lbanel was despatched overland to Hudson’s Bay by
the Intendant T alon (via the Saugenay river); and in the same year
(1671) S ieur de S t . L usson was sent by M. T alon to Sault St. Marie,
where he made a treaty with “ seventeen Indian nations.” The Intend­
ant in his report states that the place S ieur de S t . L usson reached is not
supposed to be 300 leagues from the extremities of the countries border­
ing on the Vermilion or South Sea. He continues : “ The countries bor­
dering on the Western Ocean appear to be no farther from those disco­
vered by the French, according to the calculation of the distance made
from the reports of the Indians; and by the maps there does not appear
to be more than 1,500 leagues of navigation remaining to Tartary, China
and Japan.” Even at so early a period in the history of Canada did the
French look forward to establishing communication, overland, with the
“ South Seas,” to command the trade of Western Asia; and in another
half century the French Government were so impressed with the idea of
an overland route to the Pacific that they sent instructions to Quebec to
have the exploration effected.
Du C hesneau writes in 1681 : “ They (the English) are still at Hud­
son’s Bay, on the north, and do great damage to our fur trade.”
In 1683, M. de la B arre writes to M. de S e ig n e l a y : “ The English
of Hudson’s Bay have this year attracted many of our northern Indians,
who for this reason have not come to trade to Montreal. When they
learned by expresses, sent them by Du L ’hut on his arrival at Missilimakinak,'* that he was coming, they sent him word to come quickly, and
they would unite with him to prevent all the others going thither any
more. If I stop that pass (Lake Superior to James Bay), as I hope, and
as it is necessary to do, as the English of that Bay excite against us the
savages, whom S ie u r de L ’hut alone can quieten, I shall enter into
arrangements with those of New York for the surrender to me of any
guilty fugitives, but we are desirous to obtain an order to that effect
from the Duke of Y ork .”




* Hichillimakinak, Green Bay, and Lake Huron.

O f Central British America.

185

And in the same year (1683) M. de la B arre writes to M. de S eig n e as follows:— “ A small vessel has just arrived from Hudson’s Gulf,
200 leagues further north than the Bay. * * * It is proper that
you let me know early whether the King desire to retain that post, so
that it may be done, or the withdrawal of the French, for which purpose
I shall dispose matters in order to aid them overland beyond Lake Supe­
rior, through S ie u r du L ’hut, and to send to them by sea to bring back
the merchandise and peltries.”
In Governor D ongan ’s Report on the State of the Province, in 1687,
we find a notice of the Hudson’s Bay in the New York Colonial Manu­
scripts:* “ Last spring he (the Governor of Canada) sent one D e la C roa
with fifty soldiers and one hundred young men of Canada to the NorthW est Passage, where, I am certainly informed from Canada, they have
taken three forts.”f In Mr. N elson ’s memorial about the state of the
Northern Colonies of America, dated 1636, he says, “ there are actually,
this instant, now at Versailles, six Sagamoes, or chiefs, sent from Canada,
Hudson’s Bay, and Nova Scotia, to solicit such help and assistance against
us,” Ac., &c.
M. de la V eranderie was sent on an overland expedition by the desire
of Count M aurepas , in the year 1738, to discover the Pacific Ocean.
He set out with his party from Montreal, passed through Lake Superior,
and, proceeding nearly due west, ascended the Assinniboine river, and,
directed his course towards the Rocky Mountains. W ithout reaching the
Rocky Mountains, M. de la V eranderie was obliged to abandon the pro­
secution of his expedition. Three hundred miles west of Lake Winnipeg,
on the Assinniboine river, the French erected Fort la Reine. Three others
were built further west, the most remote of which stood on the bank of
the River Paskoyac.J
M ackenzie speaks of Canadian missionaries who penetrated “ 2,800
miles from the civilized parts of the continent long before the cession of
the country to the English in 1763 !”
The names of several lakes and prominent hill ranges date from the
occupation of the country west of Lake Winnipeg by the French, prior to
the conquest. Such as Dauphin Lake, Dauphin Mountains, Fort Bour­
bon, on the Saskatchewan, near the west end of Cedar Lake. The most
remote of the French settlements on the Saskatchewan appears to have
been “ at Nipawee, in lat. 53^, long. 103.”§
When we consider these great enterprises in connection with the
population of Canada at the time, we cannot fail to be astonished at the
energy of the French colonists, and the desire they exhibited to extend their*§
la t

* Documents relating to the Colonial History of the State of Hew York.
f Governor D ongas refers to Chevalier d e la T rove —an account of whose expedi­
tion to Hudson’s Bay, in 1686, is contained in C harlevoix ’s History.
\ Footnote to New York Colonial Manuscripts; Paris Doc.
§ The name “ Nipawee” is perhaps the same as Nepowewin or “ The Standing
Place,” the present name of the mission opposite Fort a la Corne. Before the con­
quest the French had settlements at Dauphin Lake, the Pasquia (near Carrot river or
Hoot river), and at Nipawi, “ where they had agricultural instruments and wheel car­
riages, marks of both being found about the settlements.”—M ackenzie’s Voyages.




186

The Commercial Progress and Resources

[September,

empire even to the frozen north, and to secure the overland trade with
Hudson’s Bay and the far unknown west—even to “ South Seas.”
During the period when they were undertaken, the population of
Canada, from 1666 to 1738,* was as follows:—
1666

j

1667

{

1668
\

1679
16S5
1738

3,418 total population.
1,344 men bearing arms.
4,312 total population.
1,556 men capable of bearing arms.
( 5,870 total population.
( 2,000 men capable of bearing arms.
9,400 total population.
( 17,100 French inhabitants, men, women, and children.
[ 3,000 men capable of bearing arms.
( 45,000 population : the year M. de la V eranderie was sent
|
overland to discover the Pacific Ocean.
I

A t this period Upper Canada and a large portion of Lower Canada was
a wilderness, and yet the French sought to extend their territorial juris­
diction to the shores of Hudson’s B a y ; and some years later had visions
of grasping the Indian and China trade from the shores of the Pacific,
which they hoped to reach overland from Canada.
The most important particulars of the history of Central British
America, from the date of the formation of the North-West Company of
Montreal in 1783 to its union with the Hudson’s Bay Company in 1821,
are related in the Blue Book containing the Report of the Committee of
the House of Commons on the Hudson’s Bay Company’s Affairs, publish­
ed in 1858, and in other accessible documents. It is also well known
that partially successful efforts were made by Lord S elkirk to establish
an immigrant agricultural colony on the Red River of the North, which,
in the year 1857, numbered 7,000 souls, by the natural increase of the
population and the settlement of the servants of the Company. Up to
this period, however, namely, the appearance of the Report of the Com­
mittee of the House of Commons, in 1858, no other future was admitted
to be possible for this vast central region of British America than that of
a preserve for the interests of the fur trade.
II.—Action o f the United States' Government, the State o f Minnesota,
the British and Canadian Governments, and the People o f Red River
up to 1863.
In the winter of 1858-59 the machinery, furniture and timbers of a
steamer were transported by American citizens from Crow Wing, on the
Upper Mississippi, to Fort Abercrombie, on the Red River of the North,
where the vessel was built; and in 1859, the first steamer reached Fort
Garry.
Eighteen months after the publication of the Parliamentary inquiry,
and the preliminary reports of the British and Canadian Exploring Expe­
ditions of 1857 and 1858, the New York Chamber of Commerce turned
its attention to Central British America, and published a brief description,
slightly colored, of the advantages it possessed. An extract from this re-




* Paris Documents.

1863.]

O f Central B ritish America.

1ST

port is embodied in an executive document recently published bv the
United States’ Government, entitled, “ Relations between the United
States and North-West British America.” The first voyage of the
American steamer was made in June, 1859, from Fort Abercrombie to
Fort Garry. Fort Abercrombie is about 200 miles north-west of St.
Paul. In the executive document, to which allusion has just been made,
the following brief resume is given of what has been done in the United
States with respect to Central British America. “ This incident,” the
voyage of the steamer to Fort Garry, “ was the legitimate sequel to
events in Minnesota which had transpired during a period of ten years.
Organized as a territory in 1849, a single decade had brought the popu­
lation, the resources, and the public recognition of an American State. A
railroad system connecting the lines of the Lake States and provinces at
La Crosse, with the international frontier on the Red River at Pembina,
was not only projected, but had secured, in aid of its construction, a grant
by the Congress of the United States of 3,840 acres a mile, and a loan of
state credit to the amount of 20,000 dollars a mile, not exceeding an
aggregate of 5,000,000 dollars. Different sections of this important ex­
tension of the Canadian and American railways were under contract and
in process of construction. In addition, the land surveys of the Federal
Government had reached the navigable channel of Red R iver; and the
line of frontier settlement, attended by a weekly mail, had advanced to
the same point. Thus the Government of the United States, no less than
the people and authorities of Minnesota, were represented in the north­
west movement.
The foregoing statement of the condition of things at the beginning of
1860 is not materially changed. The Palmerston Ministry has not prose­
cuted to effect the masterly and comprehensive policy of Sir E. B. L y t t o n .
The commerce of Minnesota, with Selkirk and the Saskatchewan valley
has increased, being double in 1861 what was transported in 1860. Sel­
kirk settlement is still unrecognized as a province of England, its popula­
tion not materially enlarged, and mostly by American emigrants.” *
The resolution of the House of Representatives of the 20th May, 1862,
is well worthy of attention. It is as follows:
“ Resolved,—That the Secretary of the Treasury be, and he hereby is
requested, to communicate to this House any information in the posses­
sion of his department, which he may judge to be in a form suitable for
the consideration of the House of Representatives, upon the relations be­
tween the United States and North-West British America, particularly
the central districts of the Red River of the North and the Saskatch­
ewan.”
Mr. C hase replies: “ In compliance with the spirit and terms of this
resolution, I have caused to be prepared an abstract o f the reports o f
J ames W. T aylor , Esq., special agent of the Treasury Department,
and of other papers on tile relating to the subject, which abstract, to­
gether with the papers referred to, I have the honor to transmit here­
with.”
These papers occupy eighty-seven pages of print in octavo form, close,
* “ Relations between the United States and Northwest British America.” Execu­
tive Document, House of Representatives. 1862.




188

The Commercial Progress and Resources

[September,

with the recommendation, emanating from Mr. T aylor , “ that it would be
an instance of well directed legislation for the Congress of the United
States, and the Parliment of England, to unite in a liberal subsidy, say of
$200,000 by each government, for the transmission of a weekly mail from
the limits of navigation on the Mississippi river, and the British coast of
Lake Superior, by an international route, to the centres of the gold dis­
tricts of British Columbia and Washington Territory. Similar reciproc­
ity of action has led to unity of interests and sentiments on the opposite
coasts of the St. Lawrence and the Great Lakes, itself an effective
bond of peace. W hy not disarm the whole frontier of the North, by
constant multiplication of such ties and guarantees of international con­
cord «”
In Canada, the charter of the North-West Transit Company has not
yet expired, and it is in contemplation to obtain a renewal with
increased powers during the approaching session of the Provincial Par­
liament.
The magnificent and eminently patriotic plans of the New Hudson’s Bay
Company, as described in their prospectus, for the construction of a telagraph, and the establishment of a postal communication across the conti­
nent, within the limits of British America, and to open for settle­
ment the rich agricultural areas drained by Red River, the Assinniboine, and the Sasketchewan, are well known here, and require no refer­
ence at present.
In 1863, the people of Red River Settlement presented a “ Memorial
to the British and Canadian Governments,” praying for the opening of
communication between Canada and British Columbia, entirely within
British territory. This memorial, with remarks on the colonization of
Central British America, and the establishment of a “ Great Territorial
Road,” by Mr. S andfokd F lem ing , C.E., was printed by order of the Leg­
islative Assembly of Canada in 1863.
It will thus be seen that great projects relating to Central British Am­
erica are proposed by the Congress of the United States, the State Gov­
ernment of Minnesota, the Canadian Government, and the Hudson’s Bay
Company, and it now remains to consider the natural resources of that
distant region, which it is intended to bring within reach of the great
commercial centres.
III.— The Agricultural Capabilities o f the Red River and Saskatchewan
Districts.
In estimating the agricultural capabilities of the basin of Lake W inni­
peg, I bring to bear on the subject the result of personal observation
from the head waters of the Winnipeg River, 101 miles west of Lake Su­
perior, to the elbow of the south branch of the Saskatchewan, (long. 108
W.) a distance, measured along the centre of the fertile belt of laud which
crosses the basin of the Winnipeg, from the Lake of- the Woods to the
foot of the Rocky Mountains, of about 750 miles. West of the forks of
the Saskatchewan to the Rocky Mountains, about 300 miles—I have based
m y estimates upon the reportsof Captain P alliser and his associates, and
upon other reliable sources. A residence of many years in Canada has
afforded me, I venture to believe, sufficient experience to admit of me
forming a tolerably correct opinion respecting the general features of soil,




1864.]

O f Central B ritish America.

189

its fitness for cultivation, and the amount of labor required to make its
cultivation remunerative. But when I say there exists within the basin
of Lake Winnipeg an area of cultivable land greater than that which can
be found within the province of Canada, I have in view the expenditure
over a considerable area of an equal amount of manual labor, in one form
or another, to bring it into a proper state for cultivation ; the labor in
Canada being devoted to clearing away the forests, in the basin of Lake
Winnipeg to drainage. But there are many thousand square miles in the
fertile belt of Central British America, fitted for the plough in their pres­
ent natural condition. Those great advantages, which belong to a wide
extent of immediately available prairie lands of the richest description,
which have led to the rapid peopling of Illinois State, belong also to the
Winnipeg and Saskatchewan districts, and the climate of those districts
is in no way inferior to that of the central portions of Canada, where win­
ter wheat is successfully grown.*
The agricultural capabilities of the basin of Lake Winnipeg may be
summed up as follows :
Acres.

On the route from Fort William, Lake Superior, to the Lake of the
Woods, including the valley of Rainy River....................................
The fertile belt stretching from the Lake of the Woods to the flanks
of the Rocky Mountains, and as far north as the 64 th parallel, on
the Athabaska, west of McLeod’s River (80,000 square m iles).. .
Isolated areas in the prairie plateau, south of the Assinniboine... . .
Isolated areas in the great plain plateau, the extension northwards
of the great American desert, and in the valleys of the rivers flow­
ing through it.......................................................................................
Total area of land available for agricultural purposes.........................
Approximate area suitable for grazing purposes..................................
Total approximate area fitted for the abode of civilized man............
Approximate area of the basin of Lake Winnipeg, within British
territory...............................................................
Area fitted for the abode of civilized man..........................................
Desert area unsuitable for the permanent abode of man....................

200,000
51,200,000
2,000,000
1,000,000
54,400,000
30,000,000
84,400,000
199,680,000
84,400,000
115,280,000

Comparing this extent of surface with Canada, we arrive at the follow­
ing;
O results:
Acres.

Area of the province of Canada (340,000 square miles)......................
“ occupied by the sedimentary rocks (80,000 square m iles).. . . .
“
' “
“ crystalline rocks.................................................
If we suppose that one-sixth of the area occupied by the crystalline
rocks is capable of cultivation, as regards soil and climate (an esti­
mate probably in excess), the total amount of land in Canada avail­
able for the purpose of settlement will be, approximately..............
Showing an excess of land fitted for the permanent abode of man,
in favor of the basin of Lake Winnipeg over the province of Cana­
da, of.....................................................................................................

217,600,000
51,200,000
166,400,000

78,900,000
5,500,000

In Upper Canada, with a population of 1,396,091, there are 13,354,907
acres held by proprietors, of which only 6,052,619 acres are under culti­
vation, cropped, or in pasture. If the whole quantity of land fit for culti­
vation were occupied in the same proportion, the population of Canada
would exceed eighteen millions. At the same ratio of inhabitants to cul* Winter wheat has been grown at Red River settlement with success, 1S62.




190

The Commercial Progress and Resources

[September,

livable and grazing land, the basin of Lake Winnipeg would sustain a
population exceeding 19,000,000 ; or, leaving out of consideration the
land suitable to grazing purposes, its capibilities would be adapted to sup­
port 12,000,000 people. If European countries, such as France
and Great Britain, were taken as the standard of comparison, or
even many of the States of the American Union, the number would be
vastly greater.
W ith reference to the climate of a large part of the Saskatchewan dis­
trict, M. B ourgeau , the accomplished botanist, who accompanied Captain
P alliser’s expedition, says :—“ In effect, the few attempts at the culture
of the cereals already made in the vicinity of the Hudson’s Bay Com­
pany’s trading ports, demonstrate, by their success, how easy it would be
to obtain products sufficiently abundant to largely remunerate the efforts
of the agriculturist. There, in order to put the land under cultivation, it
would be necessary only to till the better portion of the soil. The prairies
offer natural pasturage, as favorable for the maintenance of numerous herds
as i f they had been artificially created.”
IV .'— Their Mineral Wealth.
I now proceed to glance at the mineral wealth of this central region of
British America. The little that is known of it already establishes the
great fact that within 100 miles of the entire length of Lake Winnipeg,
on the west side, there are salt springs sufficient to produce as much of
that important material, at a very small cost, as will be required for gen­
erations to come. Iron ores of the best description for common purposes
are distributed over vast areas adjacent to workable beds of lignite coal.
Some of the beds of coal are twelve feet in thickness, and have been re­
cognized in the western part of the basin of Lake Winnipeg over several
degrees of latitude and longitude.
It, is important to bear in mind that, with the lignite coal, the vast de­
posits of clay iron-stone are associated. These extend much further east
than the lignite layers, which have been removed by denudation, and form
a very peculiar and important feature in the rocks west and south of the
Assinniboine, after it makes its northwesterly bend.*
A large part of the region drained by the north and south branches of
the Saskatchewan is underlaid by a variety of coal or lignite. On the
North Saskatchewan coal occurs below Edmonton in workable seams.
A section of the river bank in that neighborhood shows, in a vertical
space of sixty feet, three seams of lignite; the first, one foot thick, the
second, two feet, and the third, six feet thick. Dr. H ector , who made
the section, states that the six-foot seam is pure and compact, f Fifteen
miles below the Brazau River, a large tributary to the North Saskatche­
* The vast deposits of iron ore belonging to the cretaceous series of the basin of
Lake Winnipeg, acquire especial importance, in consequence of their being associated
with equally widely distributed deposits of lignite, and are found not very remote
from apparently inexhaustable stores of bitumen and petroleum (on Clear Water
River), which, as a fuel adapted to raising elevated temperatures in a regenerating
furnace, has no equal.
f “ Proceedings of the Geological Society, 1861,” p. 421.




1864.]

O f Central B ritish America.

191

wan from the west, the lignite-bearing strata again come into view, and
from this point they were traced to the foot of the Rocky Mountains. On
the Red Deer River the lignite formation was observed at various points.
It forms beds of great thickness ; one group of seams measured twenty
feet, “of which twelve feet consisted of pure compact coal.”— (Dr. H ector .)
These coal beds were traced for ten miles on Red Deer River. A great
lignite formation of cretaceous age, containing valuable beds of coal, has
a very extensive development on the upper waters of the North and South
Saskatchewan, the Missouri, and far to the north, in the valley of the Mac­
kenzie. Colonel L efrov observed this lignite on Peace River, and Dr.
H ector recognized it on Smoking River, a tributary of Peace River, also
on the Athabaska, McLeod’s River and Pembina River, all to the north
of the Saskatchewan ; “ thus proving the range of this formation over a
slope rising from 500 to 2,300 feet above the sea, and yet preserving,
on the whole, the same characters, and showing no evidence of recent
local disturbance, beyorjd the gentle uplift which has effected this incli­
nation.” |
V.— The Winnipeg Gold Field, and the Saskatchewan Gold Field.
I now approach a subject of especial interest, and I may be pardoned
if I dwell upon it with some degree of minutness, and an appearance of
individual interest, in the distribution and probable extent of the goldbearing rocks of the Winnipeg basin. In 1857, on my return from the
Red River Settlement, I brought with me a small nugget and some par­
ticles of gold, which were given to me by a half-breed, who stated that
they had been found in the bed of Sturgeon Creek, a small tributary of
the Assinniboine.
I submitted these specimens of gold to the proper authorities in Cana­
da, stating, however, at the time, that I had no geological grounds
for the belief that they were found, as alleged, in the vicinity of Fort
Garry.
On my return to Red River, in 1858, in charge of the Assinniboine and
Saskatchewan expedition, I had the possible existence of gold-bearing
rocks near lake Winnipeg, in view ; and on the 28th of September of the
same year quartz veins penetrating palaeozoic rocks (Silurian) were dis­
covered by me, forming islands in St. Martin’s Lake, some thirty miles
west of Lake Winnipeg. Struck with their importance, I made a short
but ineffectual search for gold, the season being too far advanced
to admit of a prolonged investigation.
I named these islands St.
Martin’s Rocks, and gave a tolerably minute description of them in my
report, which was first published in Canada in 1859, again in London in
1860, in the form of a Blue Book, and also embodied in my nar­
rative of the Canadian expidition, published by Longman, in the same
year.
In 1862 several members of the Canadian emigrant party, which left
Fort Garry in June, 150 strong, traversed the valley of the Saskatchewan,
crossed the Rocky Mountains by the Leather pass, descended the Frazer,
and reached New Westminister in the autumn of the same year, discov­




j: Ibid., p. 420.

192

Progress and Resources of Central B ritish America. [September,

ered gold in fine particles on the Assinniboine, the Qu’appelle river, near
the Touchwood hills, on numerous tributaries of the North Saskatchewan,
and in the flats of the great river itself.
Having received information respecting these discoveries, on which I
thought reliance could be placed, I drew up a paper, with illustrative maps,
in June last, and submitted it to a member of the Canadian Government,
explaining to him, verbally, my views respecting the origin of the gold on
the Assinniboine river.
In July last I was informed, by a gentleman holding a high and re­
sponsible office in the Hudson Bay Company, and who had just arrived
from Fort Garry, that gold in scales had been discovered near Fort Ellice,
a few miles from the spot where it had been found in fine particles by
the Canadian emigrants. This additional evidence from an unimpeach­
able authority led me to append a note to the paper previously pre­
pared, to the effect that I considered the discovery of gold in scales, near
Fort Ellice, afforded complete scientific proof that there existed an eastern
or Winnipeg gold-bearing area, wholly distant from the Rocky Mountain
gold fields ; that the St. Martin’s Rocks formed part of this area, and that
it extended in a north-westerly direction towards Lake Athabaska, in the
form of a narrow belt of intrusive gold-bearing quartz veins, penetrating
Silurian, and, probably, also, Devonian rocks, and resembling,in some im­
portant particulars, the auriferous region in Victoria, as described by the
Government geologist of that colony. It is proper to state that the gold
hitherto found over wide areas in the basin of Lake Winnipeg has been
obtained solely from the drift, but the drift covering the valley of the
Saskatchewan, west of Lake Winnipeg, even as far as 100 miles from the
Rocky Mountains,* has travelled in a south-westerly direction,
and was derived, originally, from the eastern side of the Lake Winnipeg
basin.
Some of the gold found at Edmonton, also in many of the tributaries
of the North Saskatchewan, has a Rocky Mountain origin ; and auriferous
alluvium on the banks of the rivers coming from that range, penetrates
and overlaps the auriferous drift derived from the Winnipeg gold field.
Already numbers of young men have left the Red River Settlement, and
established themselves near Edmonton, where, 1 have been informed from
a reliable private source, they were obtaining, in July last, $15 a day
in fine gold, by simply washing the alluvial mud of the River Saskatch­
ewan.
The existence of a Winnipeg gold field, acquires particular importance
at the present time for several reasons, prominent among which is the
certainty of American progress, westward of the 100th degree of longi­
tude, being arrested by conditions of soil and climate, and its diversion
northwards, towards and into the basin of Lake Winnipeg.




(To be continued.)

* D r. H ectob.

The Sandwich Islands.

1864 .]

THE

SANDWICH

193

ISLANDS.

NUMBER III.— HAWAII AND MAUI.
H . B . A.

HAWAI I .
A t r i p around the Island of Hawaii, in these modern times, can be
made with great ease in a small screw steamer of about four hundred
tons burthen, which leaves Honolulu every tenth day, stopping at Lahaina,
on the Island of Maui, and making the circuit of H aw aii; calling off
every native village, and anchoring at Hilo and Kealekeakua—for a full day
at each place. It is certainly the most agreeable, as well as the most
expeditious, way to obtain a correct idea of the coast; for to travel through
the Island on horseback, crossing mountains fourteen thousand feet high,
would be very fatiguing, and the information to be gained would repay
no one for his trouble— unless he was about to settle there.
Horseback-riding in volcanic countries is a very different affair from
the same exercise on the plain. The mountains are so intersected by
ravines, between the mighty streams of lava that at some early period
rushed towards the sea in diverging but nearly parallel lines, that the
journey is slow and laborious. The ascent of one steep hill is made only
to plunge into a deeper valley. On Hawaii the roads lead in zig-zag lines
up precipices almost perpendicular. Between Waipio and Hilo, a dist­
ance of only forty miles, there are no less than seventy-eight canons,
flanked by perpendicular walls, and some of-them are two thousand one
hundred feet deep.
The effect of so bold and rocky a coast, seen from the sea, is very fine.
The lava-streams, which in ages past have formed the precipitous walls of
the Island, ran from the mountains, Mauna Loa, Mauna Kea, and Mauna
Hualalai, nearly parallel towards the sea; and, being arrested suddenly
by the water, they stand apart from each other like Dutch houses with
their gable ends towards the street. The appearance of having been cut
or broken off, while in full tide, is the most singular phenomenon pre­
sented by these cliffs. Possibly the sea ran many hundred feet higher at
the time this lava was flowing than it does at present; under any other
supposition it is difficult to account for the smoothness and perpendicu­
larity of the cliff. It is easy to trace the ridges in their flow from above,
until all reached a point where the motion suddenly ceased, and to fol­
low the course of some gigantic river of lava, rising in its banks several
hundred feet, if not several thousand, in its course down the mountain.
From some inequality in the land it has divided, and the two branches
form a delta as they approach the sea, with a fertile valley between them ;
they do not sink gradually to its level, but terminate in a smooth facade,
nearly a thousand feet above the surf. Innumerable water-falls tumble
over these cliffs into the sea. The country rises gradually for twenty miles
from the coast, and is covered with a growth of hard timber on the eastern
side of Hawaii. Over this ridge of timbered land the tops of Mauna Kea
and Mauna Loa rise to the clouds. The traveller is fortunate if he can
VOL. l i .— n o . h i .




12

194

The Sandwich Islands.

[September,

see their summits through the mists that hang around them, or catch a
wlimpse of the patches of snow on Mauna Kea. Mauna Kea is the north­
ern half of H aw aii; it would be incorrect to say that it is in it, for its
base is the sea-shore. So gradual is the ascent that the eye is deceived
in regard to its height, its actual base appearing to be twenty miles from
the sea, where it has already attained the height of four thousand feet.
As it rises it gradually loses all traces of verdure, and assumes a dull, red
color, spotted on the summit with patches of snow. The crater has not
been active for many years.
The steamer stops off Waipio just long enough to send a boat ashore
and to catch a glimpse of the waterfall in the charming valley of that
name. The village is nestled in one of the grandest of mountain gorges,
the walls of which are two thousand five hundred feet high, and covered
with verdure to the top. At the very base of these hills, which are so
nearly perpendicular that it remains a mystery how the inhabitants can
ever leave their valley, is a neat church, painted white, and on the left
hand, hidden partially by the hill, is a waterfall, never dry, aud, in the
rainy season, of considerable breadth and volume. Pouring from the
overhanging precipice, it throws a silver spray over the valley, twelve
hundred feet below, and in its dark setting of green, with a rainbow
hovering about its base, it gives a charm to this little resting-place
among the hills, that has made Waipio famous among the Hawaiians.
I t is their favorite valley, and K a s s e l a s , Prince of Abyssinia, might have
found a model retreat, for discontented individuals like himself, under the
waterfall of Hilawi.
As we approach Hilo, the coast gradually sinks, and allows of numer­
ous sugar plantations on the slopes towards the sea. The Bay of Hilo,
called also Waiakea, is surrounded by them. It is the best harbor in IJawaii,
always accessible, and bordered by a country that, with a little Yankee
enterprise, might quickly become the garden spot of the Sandwich Islands.
Owing to the peculiar shape of the coast, Kilauea and Mauna Loa half
encircling it to the west and south-west, while Mauna Kea rises to the
north-west, the north-east trades, blowing across the* ocean, and full of
moisture, seem to part with it over the district of Hilo. “ The rain of
Hilo” is the Hawaiian simile for a gentle, refreshing shower ; and so fre­
quent are these showers, that Hilo, proverbially, has but two in a year, one of
which lasts five months, another four. Yet a ride of fifty miles to the
westward brings us to a barren district, where rain does not fall for six.
months or more at a time. Every plant that can be grown in the torrid
zone flourishes in the rich moist soii around the Bay of Waiakea. I have
seen here, within the space of two or three acres, the cocoa-nut, palm,
the banana, bread-fruit, mango, tamarind, lime, cocoa, coffee, sugar-cane,
papeia, taro, sweet potato, tomato, maize, orange, lemon, African date, cen­
tury plant, strawberry, wild apple, alligator pear or agua-carte, cherimoya,
pine-apple, and trees and shrubs such as Pride of India, rattoon, and Floraponda, and flowers without number.
W ith all this capacity of the soil to yield rich returns, Hilo remains
but a trifling village, very few foreigners residing there. For a long time
it has been one of the stations of the A. B. 0 . F. M., and the missionaries,
Rev. Messrs C oan and L yman , still remain here. As the place is princi­
pally known by the descriptiiJns of Commodore W ilk es , of the U. S.




1864.]

The Sandwich Islands.

195

Exploring Expedition, it is worth while noticing his gross slander
that these gentlemen, by their narrow-minded bigotry, had caused
all the coffee trees to be rooted up. Taking some pains to inquire
into the merits of this story, it appeared from the testimony of persons in
no way connected with the mission, both at Hilo and Honolulu, that the
statement was entirely without foundation. On the contrary, Mr. O oait
had coffee trees growing in his yard at the time, and the officers of the
expedition drank coffee, gathered from them, at Mr. O oan ’s table. A
grove of older trees than any on the Island, is certainly growing there
now. It would have been very easy to have ascertained the truth
of any idle stories afloat, before entering so damaging a slander on
the records of a work supposed to aim at great precision. Possibly
the vexation the Commodore gives vent to in his history on finding
that no bribes could persuade the natives to set out on a journey on the
Sabbath, owing to the influence of the missionary, (an influence which
he has retained, by the way, to this day over five thousand natives) may
account for the Commodore’s credulous insertion of the stories of runaway
sailors and licentious strangers, and for the singular fact that no correc­
tion of it has ever appeared, although the whole tale is notoriously false.
From Hilo to Kealekeakua Bay, on the opposite side of Hawaii, there
is very little of interest to be seen. The coast is bleak; bare lava-rocks
and extinct craters skirt the sea-shore. Some of these lava-rocks have
been hollowed out by the sea into caves, like what are technically called
spouting-horns, and through them the water is thrown high into the air
with every dash of the surf. A few miles from the shore, generally at
live miles or there-abouts, is a belt of forest and fertile soil on which
sugar, coffee and oranges are raised.
Kealekeakua Bay, where Capt. C ook met his death, is in the district
of Kona, and has seen verjr little change since the time of that tragedy.
The cocoa-nut grove, near the rock where he fell, is standing y e t; a few
straggling houses have been put up on one side of the Bay, and a road
has been cut to the top of the hill, where the savages are believed to have
roasted and eaten the body. Here a pitiful pile of stones has been erected
as a monument, while on the beach is the rude strip of copper fastened
to a cocoa-nut stump, which does not even have the merit of being on the
spot where the great sailor fell. Rudely punched in the copper, and rendered
nearly illegible by verdigris, is the legend of how certain English captains
placed it there, and the final pathetic appeal tt>
“ G iv e

t h is a coat o f t a r .”

A little pile of lava boulders is heaped up around the post, which is not a
straight post, but has an ugly slant of sixty degrees. Every old chart of
the world has a single line below the uncouth name of this Bay, telling
that Capt. C ook, the great discoverer, was murdered here; but when one
sees this miserable monument, it is hard to believe that it marks anything
more memorable than the burial place of some favorite dog. He met a
dog’s death, and he has a dog’s grave!
It is a disgrace to the Hawaiian Government, and the English re­
sidents of Honolulu, that a decent stone has not been put up on this
beach. The least that the Government could do would be to erect a
light-house in the harbor and call it C ook’s . Any one who has made
the land here on a dark night knows that it is needed.




196

The Sandwich Islands.

[September

After leaving Kealekeakua Bay there is no other place of interest until
we reach Kawaihae, a desolate spot in Kohala, on the side of Mauna
Hualalai. Lava boulders of enormous size, like the drift one sees scattered
over New England, are dropped down the side of the mountain, and little
can be grown there. Provisions are brought from the other side of the
Island, with the exception of potatoes, the place being a famous depot
where, in former times, before it was found how much superior California
potatoes were to any grown in the tropics, the whalers supplied them­
selves annually.
There is an old temple at Kawaihae, now in ruins, which was the last
heathen temple built by K amehameha the Eirst, and the last on which
human sacrifices were offered. Heathen temples are very rare in Hawaii,
the natives having torn down immense numbers of them soon after the
introduction of the Christian religion, and even before the landing of the
missionaries, when, of their own accord, they renounced idolatry and
broke the sacred tabus; but this temple appears never'to have been dis­
turbed, and not to have suffered more than might be expected after fifty
years of exposure to the weather. I t is built on the side of a hill, being
only a series of platforms or steps, jutting out from the hill in semi-circles,
and rising one above the other. These platforms consist of large lava
rocks, the top-most rows of which are fitted neatly and cemented with
mortar, which was evidently obtained from the coral reef, being full of
minute shells. A floor as hard as Roman cement has thus been obtained,
and it is, for the most part, as perfect as when laid down. Three grand
platforms make the temple, the highest of the three having a ditch cut in
the hill on the level of' the platform, and beyond the ditch a wall, perpen­
dicular on the side towards the temple, but sloping outwards towards the
hill, so that its base is very broad. This peculiar arrangement enabled
the people, standing upon the hill, and even scattered upon the sea in
their boats, to have a full view of the sacrifices. Thousands—tens of
thousands—could collect around the great temple of Kawaihae, and see
every action of the priests. I t is not improbable that on their solemn
occasions priests occupied all the three platforms simultaneously, and that
the sacrifices were accompanied by imposing ceremonies in the presence
of a vast concourse of people.
The natives have a tradition that K amehameha , who was distinguished
by the energy he brought to bear on everything he undertook, employed
all the males on the Island to build this great temple, that he laid the
first stone himself, and that the whole work was completed in three days.
Traditions are not worth much, but if this one tells the truth it proves
that the ancient Hawaiians were an infinitely more industrious race than
their descendants.
MAUI.
L a h a in a , in the island of Maui, was at one time the principal busi­
ness town of the Sandwich group, and as many as a hundred whale-ships
have been anchored at a time in the roadstead, formed by the leg of the
mountains which overhang the town. All this is changed now, and scarce­
ly twenty ships visit the place in a year. It is out of the track of Chinabound vessels; and these, in any case, do not like to touch at the islands




1864.]

The Sandwich Islands. -

197

if it can be avoided, from tbe effect they have on the trade-winds, an ef­
fect which is felt for more than a hundred miles to the westward.
W hale ships looking for fresh provisions, and the few small craft en­
gaged in the inter-island trade, are, therefore, the only vessels seen at
Lahaina. W hat it may have been in former times it is difficult to say,
but now it has the air of “ having seen better days.” Here, as elsewhere
on the Sandwich Islands, are signs of a dense population in the past; the
rich soil at the base df the volcanoes has been long and industriously cul­
tivated. It is probabfy as rich as any in Maui, and although lack of rain
often converts it into a dry red powder, which penetrates every where.
If irrigationis used, this lava-dust exceeds all other soils in fertility. The
sugar-cane ripens here every year, and grows to a great height and thick­
ness. Although not as extensively cultivated as it might be, the natives
raise it in little patches. Their cane is ground in a small mill, erected
by Americans, and the sugar-grinder is paid by a certain proportion of
the product—generally one-half or three-fifths. This system has been
adopted on account of the difficulty of obtaining any considerable tract of
land in this locality, the native families clinging to their homes with un­
usual tenacity, and, I believe, that this is the only place in the Kingdom
where any considerable tract of land is covered with cane belonging to
natives.,| All the large plantations are owned by foreigners, generally Am­
ericans, a few are worked as joint stock companies, and some are held
by Chinamen.
Approaching Lahaina from the sea, there is a grand view of the moun­
tains behind the town. They are split by three immense gorges, and, at
a distance, it appears as if the hills were split assunder, and the fragments
tottering, so irregular are the vast crevices between them, and their ang­
els at so many degrees from the perpendicular. On near approach these
gorges are seen to be of origin similar to those already described on H a­
waii, each mountain having been a volcano that discharged lava, not only
from its top, but from holes and cones in every direction along its sides.
There is no regular peak in the chain, each irregular shape stands off
from the next, with a narrow chasm between. Their sides are bare, ex­
cepting on the slope near the base, where it approaches the sea, but the
narrow gorges are watered by little streams.
These mountains are probably 6,000 feet high, and their summits five
miles from Lahaina, but they appear to take their rise from the town it­
self, and in the clear air of that latitude their tops seem scarcely a mile
away.
The town is scattered for a mile along the beach, stretching back only
a few hundred yards. It is a dingy, slovenly-looking place, the few bet­
ter dwellings being on the beach, facing the grand surf that tumbles over
the bar at all times, the tops of the waves blown off by the trade winds,
and the line of spray running along the crests of the combers, glistening
like the flowing mane of a horse at full gallop in the sunshine. They are
shaded by cocoa-nut palms, and singular looking bread-fruit trees, with
their leaves all twisted in contrary directions, like the feathers of that
curious Javanese fowl which persist in growing the wrong way. The bread­
fruit and the banana are very plenty at Lahaina, more of the former being
found here than in any other village on the windward Islands' of the
group.




198

The Sandwich Islands.

[September,

Besides tbe sugar-mill spoken of above, which is placed a few rods out
of the town, Lahaina boasts a Court-House and Post Office, and one twostory warehouse with a conspicious sign—“ Consulate of the United
States,” over which the head of the present incumbent may be seen at
any hour of the day, gazing into the offing for vessels that rarely come.
The amount of business may be inferred from the office furniture, consist­
ing of a spy-gjass, the consular seal, and a pipe. Besides these, the prom­
inent public buildings on the beach, are a native chtirch, a Catholic cathe­
dral, and a Seamen’s Bethel, grog-shops innumerable—once flourishing
but now all deserted; and, in consequence; the tumble-down old jail in
sight, is not over-crowded as it used to be.
The Seminary of Lahaina is on the side of a mountain, about two miles
distant from the town, but as this well-known college of the Pacific was
closed, to allow the students to attend the yearly gathering at Hon olulu, it was not worth while to climb the sultry road, where the fine dust
penetrates the clothing, like that of which we are told by men who have
taken the overland route to California, where they dare not wash their
faces, lest the alkaline properties of the dust should carry the skin off with
the dirt.
There is an air of decay and neglect about Lahaina that makes it very
unattractive, especially when it is found to be the sultriest .place in
the Sandwich Islands. The thermometer is rarely below 83°, and
six hours rain does not occur in as many months. The pleasantest hours
of the twenty-four are between day-break and seven o’clock, when a plunge
in the surf prepares the whole man for the sultry day. Even this plea­
sure must be taken with caution ; innumerable sharks prowling near the
shore, give the surf of Lahaina a reputation almost as bad as that of the
west coast of Africa.
A ride of ten or fifteen miles over the mountains behind Lahaina,
brings us to an entirely different country. The passage of the mountains
is rugged in the extrem e; the winding roads lead along the sides of lava
precipices, and to positions where there is room for only a single animal
to pass, and then only with great caution. From their summits we look
down upon a vast plain, covered with sand-dunes, across which the trade
winds are always sweeping, raising whirlwinds of dust and sand, and be­
yond the plain is Haleakala, the “ House of the Sun,” the largest crater
in the world. Tbe plain between is so smooth and unbroken that it is
evidently formed bv the gentle flow of the lava from each opposing moun­
tain spread out and swept bare by the winds and waves. So smooth is it
that one can almost imagine that he sees where the tidal waves of lava
have met on its surface. Descending to it,* it is found to be marked with
the same ripples and whirl-pools as are found on the road to Kilauea.
The level rock is swept and kept clean by the strong prevailing winds,
and then, for miles again, we are laboriously plodding among sand-dunes,
thrown up to the height of fifty or sixty feet. In this desolate waste
there is a single heaven-forsaken village, called K*alepolepo—a mere
cluster of native huts, around a few stunted chcoa-nut trees—not a sign
of cultivation of—nothing but sand, heaped up on the very houses,
lying on their straw roofs, and drifting over the canoes—a dreary scene,
that but for the fierce sun beating down upon his head, would make the
traveller believe that the dazzling sand-heaps were snow-drifts, and the




1864.]

The Sandwich Islands.

199

scene and time a Russian winter. Even the dogs have a gaunt air, like
wolves.
All the way across this arid plain, the top of Haleakala is seen over the
clouds, and seems but a short distance off, although the ride would oc­
cupy the entire day. Thick clouds cover the sides of the mountain, and
make the distance deceptive. The road is not bad, and the traveller is
well repaid for his trouble, by the grandeur of the view that bursts upon
him from the summit. Well is it called “ the House of the Sun,” at sun­
rise and sun-set the prospect is magnificent. The three great mountains
of Hawaii are plainly seen oyer the clouds ; Maui, Molokai, and Ohau, are
spread out below ; Lanai and Kahoolawe, and the rock Molokini, would
scarcely make a respectable sugar-plantation, while under us is that im­
mense crater, which is ten miles from side to side.
The craters of Haleakala and Kilauea are like, and yet unlike. They
both have walls of great height, enclosing a vast surface of ground ; but
Haleakala is three times the size of Kilauea, and has long been silent.
Great cones, or extinct volcanoes, in it, look like ant-hills from the walls,
but on near approach are found to be hornitos of considerable size. On
one side of the crater is a vast opening left by some old outflow of the
lava, through which the clouds rush from belofv with a grand sweep, now
partially obscuring the pit, and again quite hiding from the view the vast
plain within the crater, while on the brink of the walls above, all is ser­
ene. Currents of air bearing clouds with them, are distinctly seen rush in and out of the crater through this breach in the w all; and yet it is
never the same, according to the testimony of all who have been there
more than once.
Judging from the size of the crater, and the area of its base, as well as
the innumerable cones upon its side, which have evidently been active
volcanoes, probably at periods when the fires of the crater bnrnt low, the
active volcano of Haleakala was, at some remote period, the most stupen­
dous among the mighty works of nature. It is difficult for the imagina­
tion to grasp the proportions of so grand a scene— a burning fake, more
than thirty miles in circumference, walled in, so that the beholder could
look down calmly upon the turbulence below; jets of liquid fire tossed
up a thousand feet, and yet falling back into the mighty cauldron ; moun­
tains within a mountain, all smoking and vomiting more than sm oke—a
horrid molten mass, thick and viscid, glowing with infernal heat. It is
not often given to man to look upon scenes of such grandeur as an erup­
tion of Haleakala. Vesuvius would be swallowed up within its walls, for
its fires would cover a greater area than the cities of New York, Philaadelphia, and Boston. All London might find room there.




Finances o f the States,

200

FINANCES

OF

TIIE

[September,

STATES.

(Continued from Page 449, Vol. 50.)
NEW JERSEY— CALIFORNIA.

NEW JERSEY .

By the provisions of the act entitled, “ An act to change the termina­
tion of the fiscal year,” approved March 24th, 1863, it is made “ the duty
of the Treasurer to close his accounts on the 30th day of November in
each year, instead of the first day of the meeting of the Legislature,
as heretofore required.” This change was made to enable the Treasurer
to furnish the Governor a synopsis of the financial transactions of the
State, to be presented to the Legislature at the commencement of each
session. The increasing business of the Treasury rendering it impossible
for a Committee of the members of the Legislature to examine the accounts
of the Treasurer during the session, without almost entirely neglecting
their legislative duties, a Committee of the members of the last Legislature
was appointed by concurrent resolution, to make such examination pre­
vious to the organization, and report at the opening of the next session.
The Committee thus appointed entered upon the discharge of their du­
ties on the 15th day of December, and have now presented their report,
from which, and the report of the previous year, we have prepared the
following statements.
An examination of the civil account, or State account proper, shows
that the total receipts for the fiscal year ending the 30th of November,
1863, and for the previous fiscal year ending Dec. 31', 1862, excluding
the cash balances on hand at the commencement of each year, were as
follows:
<
F o r year ending
Nov. 30, 1863.

F o r year ending
Dec, 31, 1S62. ,

$254,345 53
241,775 14

$263,922 02
186,073 09

$12,570 39

$77,849 02

92,084 57

14,235 55

Balance on hand at end of y ear................. $104,654 96

$92,084 57

Excess of receipts over disbursements.. . .
Balance on hand at commencement of

The receipts and disbursements, in <
ember 30, 1863, were as follows :

1, for the year ending Nov-

Balance Sheet o f the Receipts and Disbursements o f the State Fund Proper,
fo r the Fiscal Year ending Nov. 30th, 1863 :
R EC EIPTS.

Balanco on hand at last settlement, January 1 ,1 8 6 3 ...




$92,084 57

(

1864.]

Finances o f the States.

201

Receipts from Joint Companies.
Dividends on capital stock........................... $20,000 00
Transit duties from Camden and Amboy
Railroad Company.................................... 126,944 48
Transit duties from Delaware and Raritan
Canal Company......................................... 56,529 20
Interest on joint bonds.................................
2,560 80
----------------

206,034 43

From other Sources.
Transit duties on New Jersey Railroad and
Transportation Company.......................... $20,’768 15
Transit duties on Belvidere and Delaware
Railroad Compahy...................................
45 60
Tax on capital stock of New Jersey Rail­
road and Transportation Company......... 21,989 00
Tax on capital Stock of Patterson and Ramapo Railroad Company............................
1,241 12
Forfeited recognizances................................
932 18
Commissioner of Deeds of other S ta te s ....
200 00
Civil commissions..........................................
439 00
Pedlars’ licenses.............................................
710 00
Assessments on private acts.........................
1,986 00
----------------48,311 05
Total receipts................................................................
DISBURSEMENTS.

Ordinary Expenses.
M ilitia.............................................................
Court of Errors and Appeals........................
State L ibrary..................................................
Deaf and D um b.............................................
Pennsylvania Training School....................
Postage...........................................................
Interest............................................
State Arsenal.................................................
B lind...............................................................
Court of Pardons...........................................
State Prison salaries.....................................
Lunatic Asylum salaries................................
State account.................................................
Legislature......................................................
Pensions.........................................................
Incidental account.........................................
Transportation and costs..............................
P rin tin g ..........................................................
Salaries............... ; ..................................




$90
4,857
569
3,445
2,950
1,305
6,240
292
3,150
1,080
28,791
4,400
13,883
21,931
759
18,772
16,558
20,071
35,034

00
00
56
15
00
22
00
50
83
00
71
00
39
54
26
79
77
21
80

$346,430 10

202

Finances o f the States.

Extraordinary Expenses.
$314
Requisition, arrest of fugitives, & c ..............
Farnum Preparatory School........................
1,200
Appropriation for W ebster’s D ictionary...
800
Managers of Lunatic Asylum...................... 12,388
Appropriation for Lippincott’s G azetteer..
1,200
State Prison repairs......................................
2,257
Appropriation to Public Schools................. 25,981
State Normal School....................................
13,500

[September,

17
00
00
64
00
08
52
00
57,641 41
104,654 96

Balance on hand November 30, 1863

$346,430 10
Showing a cash balance in the Treasury of 8104,654 96.
THE DEBT OP S E W

JER SEY .

A t the close of the fiscal year, the indebtedness of the State was :
To Bank of Savings, New York City, for loans in 1846,
1850, and 1854................................................................
895,000 00
To Trenton Banking Company, for warrants given for
appropriation to Lunatic Asylum, March, 1857.........
9,000 00
Balance of appropriation of 1863 to Normal School.. . .
500 00
On appropriation of 1863, to Counties for Public Schools
30,000 00
Credit by cash in hand, as before stated, to liquidate debt

8134,500 00
104,654 96

Leaving amount of debt, November 3 0 ,1 8 6 3 ................

$29,845 04

On the 1st day of January, 1863, the debt was.............
On the 30th of Nov., 1863, the debt, as before stated, was

$76,420 37
29,845 04

Amount of debt paid from January 1, to November 31

$46,575 33

Showing a reduction of the indebtedness of the State, in eleven months,
of the sum of forty-six thousand five hundred and seventy-five dollars and
thirty-three cents.
Since the accounts of the Treasury were closed, the sum of one hund­
red thousand dollars of the tax levied in 1863, has been paid on Stateaccount, which not only liquidates the debt, but leaves a balance in the Trea­
sury, after the payment of all indebtedness, to the credit of the State ac­
count proper, amounting to the sum of about seventy thousand one hun­
dred and fifty dollars.
The Treasury is in possession of the following available assets, the prop­
erty of the S ta te :
1.000 shares Camden and Amboy Railroad Co., par value
$100,000 00
1.000 shares Delaware and Raritan Canal Co., par value
100,000 00
Six per cent bonds, Joint Companies................................
44,000 00
Bond and mortgage............................................................
2,300 00




$246,300 00

1864.]

Finances o f the States.

203

THE W AR DEBT OF NEW JER SEY .

The amounts expended by the State, and charged to the United States
for war purposes, are as follows:
Expended during the year 1861........................................
$844,304 37
“
“
“
1862.........................................
444,539 39
“
“
“
1863.........................................
591,916 09
T otal.............................................................................
The amount received from the United States,
In 1861, was.........................................................................
In 1862, was.........................................................................
In 1863, was.........................................................................
Total.............................................................................

$1,880,759 85
$650,832 17
57,732 47
615,325 81
$1,323,890 45

Of the amount credited as received from the United States in 1863,
the sum of $382,043 90 was the quota of the United States tax assumed
by the State. This statement exhibits a balance due the State from the
United States, of $556,869 40. It is understood that some of the items
of expenditure by the State, for war purposes, charged to the General
Government, have been disallowed, or suspended by the War Department.
The amount of bonds issued during 1861.......................
$531,800 00
u
u
a
U
U
259,300 00
1862.......................
u
a
a
u
a
1863.......................
847,000 00
$1,638,100 00
Total amount of bonds issued ..
These bonds are redeemable as fo llo w s:
January 1, 1 8 7 4 .. ...........$100,000
January 1, 1 8 6 5 .. ........... $99,600
“ 1 ,1 8 7 5 ... ......... 100,000
“ 1, 1866 ..
“ 1 ,1 8 7 6 .. ......... 100,000
“ 1 ,1 8 6 7 ..
“ 1 ,1 8 7 7 .. ......... 100,000
“ 1 ,1 8 6 8 ..
“ 1 ,1 8 7 8 .. ......... 100,000
“ 1 ,1 8 6 9 .. ........... 99,500
“ 1, 1 8 79.. ......... 100,000
“ 1 ,1 8 7 0 .. ........... 100,000
“ 1, 1 880.. ......... 100,000
“ 1 ,1 8 7 1 .. ........... 100,000
“ 1, 1 8 7 2 .. ........... 99,300
“ 1 ,1 8 8 1 ... ......... 42,000
“ l i«7a
i on non
$1,638,100
ASSETS AND LIA BILITIES.

Liabilities.
Bonds issued.........
Temporary loans due banks.............
$1,875,404 88

—

Assets.
Sinking fund bonds....................
Cash in bank.................................
Balance claimed due from U. S.

$ 111,000 00
135,000 00
556,869 40
802,869 40

Total liabilities in excess of assets.




1,072,535 48

204

Finances o f the States.

[September,

SINKING FUND.

The amount invested in th e Sinking Fund is $1'11,664 64, as will ap­
pear by the following statem ent:
State tax for 1861...............................................................
“ “ “ 1862....................... ........................................
One year’s interest on registered bonds............................
Fifteen per cent interest United States tax account,
$450,000...........................................................................

$63,260 00
37,304 64
3,600 00

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

$171,664 64

67,500 00

CALIFORNIA.
The last report of the Treasurer of California, was made November 2d,
1863, and is simply a brief statement of the receipts and disbursements of
the State, from the 14th day of December, 1862, to the 21st day of Oc­
tober, 1863. The present Treasurer had then been in office only a very
short time, and was unable, therefore, to present a fuller report at that
date (the first Monday of November,) the time fixed by law. Below is a
tabular statement of the receipts and payments for the period stated :
RECEIPTS FROM DECEMBER

B alance
on h a n d Dec.
14, 1862.

Fund.
G e n e r a l F u n d .................................................. ,
S c h o o l F u n d .....................................................
H o s p i t a l F u n d . ..........................................
L i b r a r y F u n d .................................................
I n t e r e s t a n d S in k i n g F u n d o f 1857. .

“

14, 1862, TO

“

“

I8 6 0 ..

S w a m p L a n d F u n d ...................................
School
“
“
...................................
E s t a t e s o f D e c e a s e d P e r s o n s ..............
S e m i n a r y F u n d ............................................
P u b l i c B u ild in g F u n d ..............................
N a t i o n a l T a x F u n d ....................................

$103,420 55
60,252 37
7,066 67
1,852 79
134,930 85
871 07
199,140 75
25,416 20
100 93
539 55
233 27
134,647 92

21, 1863.

E e c e ip ts from
D ec. 14, 1862, to
O ct. 21, 1863,
inclusive.

T o tal a m o u n t
on hand.

$455,173 23
56,885 00
9,084 53
20,734 07
188,074 94
7,038 20
13,406 08
15,409 29
76 76
2,620 00
77 28
107,264 38

$558,593 78
117,137 37
16,151 20
22,586 86
323,006 79
8,708 27
212,546 83
40,824 49
176 69
3,159 55
310 56
241,912 30

24,260
4,819
1,876
4,691
27,370
218,489

M il i t a r y R e c r u i tin g F u n d .....................
C a p i to l F u n d ........... - ...................................
S o ld i e r ’s R e l i e f F u n d ................................
I n s a n e A s y l u m F u n d ................................
M i lita r y F u D d ............................................. ..
War B o n d s — U n i t e d S t a t e s N o t e s . .
T o t a l s ........... .. .............................. ..

OCTOBER

$668,471 92

00
86
50
25
25
29

24,260 00
4,819 86
1,876 60
4,691 25
27,370.25
218,489 29

$1,158,148 91

$1,826,620 03

TRANSFER PAYMENTS AND BALANCES.

Fund.

General Fund.
School Fund...
Hospital Fund




Transfers
to

Transfers
from

$63,594 97
50,433 70

$50,433 70
2,163 77

Paid on
W arrants.

$550,999 33
131,556 65
2,666 49

Balance on hand
October 21,
Ie63.

$-.0,755 72
33,850 66
13,484 71

1864.]

Finances o f the States.

Library Fund...............
595 00
Inter. & Sink. Fd. of’5!
“
“
“
’60
Swamp Land F u n d ...
School
“
“ ...
Estates of Deceased
Persons....................
Seminary fund............
Public Building Fund.
National Tax F u n d ....
..............
Legislative Fund........ 180,000 00
Military Recruit. Fund.
Capitol Fund . . . . . . . .
Soldiers’ Relief F n n d ..
Insane Asylum F u n d ..
Military Fund............
War Bond Fund, (U. S.
N otes)......................

183,125 00

58,306 20
595 00

205
13,780
239,626
6,947
22,145
40,685

183,606
179,163
21,564
4,141

05
27
60
84
00

10
51
35
36

4,691 25
24,630 88

9,401
83,379
1,760
7,275
139

81
52
77
99
49

176 69
'3,159 55
310 65
241
2,635
678
1,876

49
65
50
50

2,733 37

90,574 59

127,914 70

’$1,516,785 17
........................

$309,835 66
127,914 70

Cash balance....................................................................................

$181,920 96

Totals.......... .
Deduct U. S notes

The receipts and disbursements are also given, in a supplemental table,
from October 21, 1863, to December 1, 1863. If we add these to the
above, we have the account for the eleven and one-half months as follows:
RECEIPTS.

Receipts from October 21, to December 1, 1863...........
“ as stated above, from Dec. 14,1862, to Oct. 21,
1863..................................................................................

1,158,148 91

Total receipts from Dec. 14, 1862, to Dec. 1, 1863........

$1,901,930 82

$743,781 91

PAYMENTS.

Payments from Oct. 21, 1863, to Dec. 1, 1863...............
“
as stated above, from Dec. 14, 1862, to Oct.
2 1 ,1 8 6 3 ...........................................................................

1,516,785 17

Total receipts from Dec. 14, 1862, to Dec. 1, 1 8 6 3 ....

$1,873,229 02

$356,443 85

Below will be found a tabular statement of the receipts and expendi­
tures of the State for thirteen years, to the 30th of June of each y ear:
Receipts and Expenditures from 1850 to June 30, 1862.
1850
1851
1852
1853
1854
1855
1856
1857
1858
1859
1860

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




Receipts.

Expenditures.

$3,156
330,796
366,825
454,986
1,022,647
1,155,537
723,290
799,795
12,15,129
1,184,222
1,198,582

$351,322
742,272
1,020,239
1,456,815
1,499,265
1,471,937
1,632,765
1,018,203
983,353
1,109,143
1,165,718

206

Finances o f the States.

1861 .................................
1862 ...............................................................

[September,

1,292/719
1,031,529

1,462,691
1,146,745

Totals........................................................... $10,779,213

$15,060,468
10,779,213

Excess of expenditures oyer receipts for 13 years.............

$4,281,255

The objects for which this money was expended is seen in the following
tab le:
Objects o f Expenditure fro m 1850 to 1862, inclusive.
Executive...................... $1,223,425 Insane Asylum............... $825,260
Legislature...................
3,237,103 State Prison.................. 1,546,114
Judiciary....................... 1,333,526 Indian w ars..................
130,590
Printing........................ 1,270,739 Interest State debt......... 1,793,629
Schools.........................
546,000 Bonds paid.....................
978,815
Hospitals......................
696,562 Relief purposes.............
344,698
Indigent sick...............
85,110 Miscellaneous.................. 1,048,897
Total for 13 years........................................................

$15,060,468

DEBT OF CALIFORNIA.

The Treasurer’s report for 1862 contained the following statement of
the public debt, including the floating and unfunded d eb t:
Bonds of 1857.......................................................................
$3,727,500
“
“ 1860.......................................................................
198,500
Due on W ar Bonds and Coupons issued prior to 1 8 5 7 ..
220,000
“
“
“
“
“
“ since 1857........
338,930
“ for amounts audited by W ar Board.........................
68,621
“ to School Fund.............................. .'...........................
475,520
“
“
“ for interest.........................................
50,434
Outstanding claims on the Treasury, Deo. 1, 1862........
489,780
Total funded and unfunded debt............... ................

$5,569,285

Through the kindness of the present Treasurer, Hon. R o m u a l d o P a c h e c o
we have received a statement of the total debt January 1, 1864, but not
the item s; it is as follows :
Total debt Jan. 1, 1864..................................................... $5,365,640 71
In 1862, the assessed value of the real and personal property of Cali­
fornia, for purposes of taxation, was $163,369,071.
Lands owned by the State.
The State owned, in 1862, 8,807,680 acres ofu lands, under the follow­
ing g rants:
.
Grant of School Lands........................................................ 6,755,200 acres.
“ Swamp Lands........................................................ 1,500,000 “
“ Internal improvement..........................................
500,000 “
“ Seminary................................................................
46,080 “
“ Public buildings...................................................
6,400 “
Total............................................................................... 7,807,680




1864.]

207

The Carriage o f Goods and Passengers.

C O M M E R C I A L

L A W .-N O .

14.

TH E CARRIAGE OF GOODS AND PASSENGERS.
(Continued from Page 129.)
THE LIEN OE THE COMMON CARRIER.

B y “ lien,” we have said, is meant a bond, or something which fastens
one thing to another. The legal meaning of this word, which we have
had occasion to use in preceding articles, is the right of holding or de­
taining property until some charge against it, or some claim upon the
owner on account of it, is satisfied.
The common carrier has this right against all the goods he carries, for
his compensation. While he holds them for this purpose, he is not liable
for loss or injury to them as a common carrier; that is, not unless the
injury happen from his own fault.
He may not only hold the goods for his compensation, but may recover
this out of them, by any of the usual means in which a lien upon personal
chattels is made productive. That is, he holds them just as if they were
pledged to him by the owner as a security for the debt. Therefore, if the
debt be not paid in a reasonable time after it is due and demanded, the
carrier may have a decree of a court of equity for their sale; or may sell
them himself at auction, retaining his pay from the proceeds, and paying
over the remainder. But to make this course justifiable and sate, the
carrier must wait a reasonable time, and give full notice of his intention,
so that the owner may have a convenient opportunity to redeem the
goods; and there must be proper advertisement of the sale, and every
usual precaution taken to insure a favorable sale ; and the carrier must
not buy himselfj and must conduct in all respects with entire honesty.
If a carrier carries goods for and at the request of a party who does not
own them, and at the end of the transit the true owner discovers or inter­
poses and claims them, the carrier might recover his fare if he had render­
ed a certain service or benefit to the owner by conveying the goods, which
service or benefit the owner accepted by there receiving the goods. But
it would be a personal claim only which he might sue tor, and for which
he would have no lien. This, at least, is the conclusion to which we
think the principles of the common law would lead; but on the authori­
ties it is somewhat uncertain.
THE LIABILITY OE THE COMMON CARRIER.

This is perfectly well established as a rule of law,, although it is very
exceptional and peculiar. It is sometimes said to arise from the public
carrier being a kind of public officer. But the true reason is the confi­
dence which is necessarily reposed in him, the power he has over the
goods intrusted to him, the ease with which he may defraud the owner of
them, and yet make it appear that he was not in fault, and the difficulty
which the owner might have in making out proof of his default. This
reason it is important to remember, because it helps us to construe- and




\

208

The Carnage o f Goods and Passengers.

[September,

apply the rules of law on this subject. Thus, the rule is that the common
carrier is liable for any loss or injury to goods under his charge, unless
it be caused by the act of God, or by the public enemy. And this phrase,
“ the act of God,” has blen said to mean the same thing as “ inevitable
(or unavoidable) accident.” But this is a mistake. The rule is intended
to hold the common carrier responsible wherever it was possible that he
caused the loss either by negligence or design.
Hence, the act of God means some act in which neither the carrier
himself, nor any other man, had any direct and immediate agency. If,
for example, a house in which the goods are at night is struck by light­
ning, or blown over by a tempest, or washed away by inundation, the
carrier is not liable. This is an act of God, although man’s agency inter­
feres in causing the loss; for without that agency, the goods would not
have been there. But no man could have directly caused the loss. On
the other hand, if the building was set on fire by an incendiary at mid­
night, and the rapid spread of the flames made it absolutely impossible to
rescue the goods, this might be an inevitable accident if the carrier were
wholly innocent, but it would also be possible that the incendiary was in
collusion with the carrier for the purpose of concealing his th eft; and
therefore the carrier would be liable without showing that this was the
case.
As a general rule, the common carrier is always liable for loss by fire,
unless it be caused by lightning; and this rule has been applied to
steamboats. So, it may be true that after the lightning, the tempest, or
inundation, the carrier was negligent, and so lost the goods which might
have been saved by proper efforts, or that he took the opportunity to steal
them. If this could be shown, the carrier would, of course, be liable ; but
the law will not presume this, if the first and main cause were such that
the carrier could not have been guilty in respect to it. So, a common
carrier would be liable for a loss caused by a robbery, however sudden,
unexpected, and irresistible, or by a theft, however wise and full his pre­
cautions, and however subtle and ingenious the theft, although either of
these might seem to be “ inevitable” ; that is, unavoidable by any means
of safety which it would be at all reasonable to require.
The “ act of God,” which suffices to excuse the common carrier for in­
jury to tLe goods he carries, must be the immediate, and not the remote,
cause of the injury. Thus, an action was brought in England against the
master of a vessel navigating the river Ouse and Humber from Selbv to
Hull, by a person whose goods had been wet and spoiled. A t the trial,
it appealed in evidence that at the entrance of the harbor at Hull there
was a bank on which vessels used to lie iu safety, but of which a part had
been swept away by a great flood some short time before the misfortune
in question, so that it had become perfectly steep, instead of shelving to­
wards the river; that, a few days alter this flood, a vessel sunk.by getting
on this bank, and he mast, which was carried away, was suffered to float
in the river, tied to some part of the vessel; and the defendant, upon
sailing into the harbor, struck against the mast, which, not giving way,
forced the defendant’s vessel towards the bank, where she struck, and
would have remained safe had the bank remained in its former situation ;
but on the tide ebbing, her stern sunk into the water, and the goods were
spoiled ; upon which the defendant tendered evidence to show that there




1864.J

The Carriage o f Goods and Passengers.

209

had been no actual negligence. The judge before whom the ease was tried
rejected the evidence, and ruled that the act of God which could excuse
the defendant must be immediate; but this was too rem ote; and directed
the jury to find a verdict for the plaintiff, and they accordingly did so.
The case was afterwards submitted to the consideration of the Court of
King’s Bench, who approved of the direction of the judge at the trial.
In another English case, it was held that a loss caused by a boat’s run­
ning on an unknown “ snag,” in the usual channel of the river, is referable
to the act of God. But in a case in Virginia it was held that, where a
common carrier strands his boat upon a bar recently formed in the chan­
nel of the river, of the existence of which he was previously ignorant, fie is
liable for the damage done to the freight on board his boat.
The act of God may be negative merely, as where a vessel is wrecked
from a failure of wind. Thus, in New York, where a vessel was beating
up the Hudson against a light and variable wind, and being near shore,
and while changing her tack, the wind suddenly failed, in consequence of
which she ran aground and sunk, it was held that the sudden failure of the
wind was the act of God, and excused the m aster; there being no negli­
gence on his part. So it includes whatever loss springs from the inherent
nature of the thing ; as its fermentation or decay; always provided the
carrier took all reasonable precautions, in respect to stowage, exposure, and
the like, to prevent this. For whatever the direct and principal cause of
injury may be, if the negligence or default of the carrier substantially
mingles with it, he is responsible.
The general principles of agency extend to common carriers, and make
them liable for the acts of their agents, done while in the discharge of the
agency or employment. So the knowledge of his agent is the knowledge
of the carrier, if the agent be authorized expressly, or by the nature of his
employment, to receive this notice or knowledge. But an agent for a com­
mon carrier may act for himself,—as a stage-coachman in carrying parcels,
for which he is paid personally and does not account with his employer,—
and then the employer, as we have said, is not liable, unless the owner of
the goods supposed the stage-coachman carried the goods for his employer,
and was justified by the facts and apparent circumstances in so believing.
A carrier may be liable beyond his own route. It is very common for
carriers, who share between them the parts of a long route, to unite in the
business and the profits, and then all are liable for a loss on any part of
the route. Thus, where an association was formed between shippers, on
Lake Ontario, and the owners of canal-boats on the Erie Canal, for the
transportation of goods and merchandise between the city of New York
and the ports and places on Lake Ontario and the Fiver St. Lawrence,
and a contract was entered into by the agent of such association for the
transportation of goods from the city of New York to Ogdensburg, on the
River St. Lawrence, and the goods were lost on Lake Ontario; it was held
that all the defendants were answerable for the loss, although some of
them had no interest in the vessel navigating the lake, in which the goods
were shipped.
If they are not so united in fact, but seem to be so, and justify a sender
in supposing they are united, they are equally liable. Thus, where A and
B were jointly interested in the profits ot a common stage-wagon, but, by
a private agreement between themselves, each undertook the conducting
VOL. LI.— NO. I I I .




13

The Carriage o f Goods and Passengers.

210

[September,

and management of the wagon, with his own drivers and horses, for
specified distances, it was held that, notwithstanding this private agree­
ment, they were jointly responsible to third persons for the negligence of
the drivers throughout the whole distance.
If a carrier takes goods to carry only as far as he goes, and then enga­
ges to send them forward by another carrier, he is liable as carrier to the
end of his own route; he is liable also if he neglects to send the goods
on ; but he is not liable for what may happen to them afterwards. Thus
far the law is quite settled.
It seems to be still the rule in England, that, if a carrier takes goods
which are marked or otherwise designated to go to a place beyond his
own route, it will be presumed that he agrees to carry them thither, and
that he has made arrangements for that purpose, which affect him with
the liability of a carrier, through the whole route, unless he can show that
the fact is otherwise, and also that the sender understood the fact to be
otherwise, or had good reason so to understand it.
It is otherwise in this country, according to the weight of recent author­
ity, and a common carrier will not be held liable, as such, beyond his own
route, without evidence of a distinct contract to that effect; and the mere
fact of his receiving a package directed to a place beyond his route will not
be sufficient evidence for that purpose.
This has been so held by the Supreme Courts of New York, Vermont,
Massachusetts, and Connecticut. I t is obvious that the opposite rule would
he much less safe in this country of immense distances, and where compan­
ies sometimes associate, for the purpose of facilitating the carriage of goods
over vast spaces, than in England. And we think it open to doubt, whether
the rule stated as the English rule will continue without important modifi­
cations there.
THE CA RRIER OF PASSENGERS.

The carriers of passengers are under a more limited liability than the
carriers of goods. This is now well settled. The reason is, that they have
not the same control over passengers as over goods; cannot fasten them
down, and'use other means of securing them. Hence the distinction ap­
plies to the carriage of slaves; for, while they are in some respects property,
they are also possessed with the same power and necessity oflocomotion as
other men. But while the liability of the carrier of passengers is thus mit­
igated, it is still stringent and extreme. No proof of care will excuse the
carrier if he loses goods committed to him. But proof of the utmost care
will excuse him for injury done to passengers.
Some of the authorities, and, as we think, the reason of the case would
justify us in saying, that the carrier of passengers is liable for injury to
them, unless he can show that he took all possible care—giving always a
reasonable construction to this phrase; and in the case of railroad compan­
ies, there is authority for using the words in almost their literal meaning;
that is, for holding them liable for all injury to passengers which could have
been possibly avoided.
A NOTICE BY THE CA RRIER RESPECTING H IS LIABILITY.

It is now settled—though formerly denied—that the common carrier
has a right to make a special agreement with the senders of goods, which




1864.]

The Carriage o f Goods and Passengers.

211

shall materially modify, or even wholly prevent, his liability for accident­
al loss or injury to the goods. W hether he could make such a bargain
with his passengers, to prevent his liability for injury to their persons, is
much more doubtful. The question does not seem to have come directly
before the courts. And although the language used to express the car­
rier’s rights is sometimes broad enough to extend to the persons or pas­
sengers, as well as to their goods, we think it open to doubt whether this
was meant, or would be generally admitted as law. And if it were ad­
mitted, we should expect the carrier held to stricter proof of a bargain,
and to a more definite bargain, with regard to persons, than might suffice
as to goods.
The principal question is, what constitutes such a bargain ? It seems
to be well settled, by the weight of authority in this country, that a mere
notice that the carrier is not responsible, or his refusal to be responsible,
although brought home to the knowledge of the other party, does not ne­
cessarily constitute an agreement. The reason is this. The sender has a
right to insist upon sending his goods, and the passenger has a right to
insist upon going himself, leaving the carrier to his legal responsibility ;
and the carrier is bound to take them on these terms. If, therefore, the
sender or the passenger, after receiving such notice, only sends or goes in
silence, and without expressing any assent, especially if the notice be
given at such time, or under such circumstances as would make it incon­
venient for the sender not to send, or for the passenger not to go, then
the law will not presume from his sending or going an assent to the car­
rier’s terms.
But the assent may be expressed by words, or made manifest by acts;
and it is in each case a question of evidence for the jury, whether there
was such an agreement.
It seems to be conceeded also, that a notice by the carrier, which only
limits and defines his liability to a reasonable extent, as one which states
what kind of goods he will carry, and what he will, not; or to what
amount only he will be liable for passengers’ baggage, without special
notice ; or what information he will require, if certain articles, as jewels
or gold, are carried; or what increased rates must be paid for such things
— any notice of this kind, if in itself reasonable and just, will bind the
party receiving it.
No party will be affected by any notice,— neither the carrier, nor a
sender of goods, nor a passenger,—unless a knowledge of it can be brought
home to him. In a case in Pennsylvania, where the notice was in the
English language, and the passenger was a German, who did not under­
stand English, it was held incumbent on the carrier to prove that the
passenger had actual knowledge of the limitation in the notice.
But the knowledge may be brought home to him by indirect evidence.
As by showing that it was stated on a receipt given to him, or on a tic­
ket sold him, or in a newspaper which he actually read, or, perhaps, in
one which he was in the habit of reading, or even that.it was a matter of
usage, and generally known. But in an action in Massachusetts for lost
baggage, it was proved that there was a notice printed on the back of the
passage ticket given to the plaintiff, that the defendants wonld not be re­
sponsible beyond a specific sum ; but no other notice was given, nor was
plaintiff’s attention called to this. And it was held that these facts did




The Carriage o f Goods and Passengers.

212

[September,

not furnish that certain notice -which must be given to exonerate such car­
rier from his liability. This question is one of fact, which the jury will
determine upon all the evidence, under the direction of the court. And
if the notice is ambiguous, they will be directed to construe it against the
carrier.
Any fraud towards the carrier, as a fraudulent disregard of a notice, or
an effort to cast on him a responsibility he is not obliged to assume, or
to make his liability seem to be greater than it really is, will extinguish
the liability of the carrier so far as it is affected by such fraud.
If a carrier gives notice, which he is authorized to give, the party re­
ceiving it is bound by it, and the carrier is under no obligation to make
a special inquiry or investigation to see that the notice is complied with,
but may assume this as done.
It should, however, be remarked, that such notice affects the liability of
the common carrier only so far as it is peculiar to him ; that is, his liabil­
ity for a loss which occurs without his agency or fau lt; for he is just as
liable as he would be without notice, for a loss or injury caused by his
i.wn negligence or default.
W hether a common carrier could make a valid bargain by which he
should be free from all liability, however the loss might occur, may not
be certain. But, in the present state of the law, we are inclined to think
he m ig h t; so far, that such a bargain would protect him against every­
thing but his own wilful or fraudulent misconduct. But no bargain could
be made to protect him against this.
THE c a r r i e r ’s LIABILITY FO R GOODS CARRIED BY PASSEXGERS.

A c a r r i e r of goods knows precisely what goods, or rather what parcels
and packages, he receives and is responsible for. A carrier of passengers
is responsible for the goods they carry with them as baggage ; what that
is, the carrier does not always know ; and he is responsible only to extent
of what might be fairly and naturally carried as baggage. This must al­
ways be a question of fact, to be settled as such by the jury, upon all the
evidence, and under the direction of the court. But there can be no pre­
cise and definite standard. A traveller on a long journey needs more
money and more baggage than on a short one ; one to some places and for
some purposes, more than one going to other places or for other purposes.
Thus, in New York it was decided that baggage does not properly in­
clude money in a trunk, or any articles usually carried about the person.
And, in another New York case, it was held that, where the baggage of
a passenger consists of an ordinary travelling-trunk, in which there is a
large sum of mone, such money is not considered as included under the
term baggage, so as to render the carrier responsible for it. But a pas­
senger may carry, as baggage, money, not exceeding an amount ordinar­
ily carried for travelling expenses. So in Massachusetts, it was held that
common carriers are responsible for money, bona fide, included in thebaggage of a passenger, for travelling expenses and personal use, to an amount
not exceeding what a prudent person would deem proper and necessary
for the purpose. In Pennsylvania carriers were held responsible for la­
dies’ trunks containing apparel and jewels. And, in Illinois, a common
carrier of passengers was held liable for the loss of a pocket-pistol, and a




18G4.]

The Carriage o f Goods and Passengers.

213

pair of duelling pistols, contained in the carpet-bag of a passenger, which
was stolen out of the possession of the carrier. But in Tennessee it was
held that “ a silver watch, worth about thirty-five dollars; also medicines,
handcuffs, locks, &o., worth about twenty dollars,”— were not included in
the term baggage, and that the carrier was not responsible for their loss.
In Ohio, it was held that a gold watch, of the value of ninety-five dollars,
was a part of the traveller’s baggage, and his trunk a proper place to carry
it in. In another New York case, it was held that the owners of steam­
boats were liable as common carriers for the baggage of passengers ; but
to subject them to damages for loss thereof, it must be strictly baggage ;
that is, such articles of necessity and personal convenience as are usually
carried by travellers. It was accordingly held, in that case, that the car­
rier was not liable for the loss of a trunk, containing valuable merchantize and nothing else, although it did not appear that the plaintiff had any
other trunk with him. But in a case in Pennsylvania, where the plain­
tiff was a carpenter moving to the State of Ohio, and his trunk contained
carpenters’ tools to the value of $55, which the jury found to be the
reasonable tools of a carpenter, it was held that he was entitled to
recover.
There is some diversity, and perhaps some uncertainty, in the applica­
tion of the rule; but the rule itself is well settled, and a reasonable con­
struction and application of it must always be made ; and for this pur­
pose, the passenger himself, and all the circumstances of the case, must
be considered.
The purpose of the rule is to prevent the carrier from becoming liable
by the fraud; for this would be the case if a passenger should carry mer­
chandise by way of baggage, and thus make the carrier of passengers a
carrier of goods without knowing it, and without having been paid for it.
Generally, a common carrier of passengers, by stage, packet, steamer,
or cars, carries the moderate and reasonable baggage of a passenger, with­
out being paid specifically for it. But the law considers a payment for
this so far included in the payment of the fare, as to form a sufficient
ground for the carrier’s liability to the extent above stated.
The carrier is only liable for the goods or baggage delivered to him and
placed under his care. Hence, if a sender of goods send with them his
own servant, and intrust them to him, and not to the carrier, the carrier
is not responsible. So, if a passenger keeps his baggage, or any part of
it, on his person, or in his own hands, or within his own sight and imme­
diate control, instead of delivering it to the carrier or his servants, the
carrier is not liable, as carrier, for any loss or injury which may happen
to them ; that is, not liable without actual default in relation to these
specific things. Thus, in an action brought in New York to charge a
railroad, as common carriers, for the loss of an overcoat belonging to a
passenger, it appeared that the coat was not delivered to the defendants,
but that the passenger, having placed it on the seat of the car in which he
sat, forgot to take it with him when he left, and it was aftewards stolen ;
and it was held that the defendants were not liable. But if the baggage
of a passenger is delivered to a common carrier, he is liable for it in the
same way, and to the same extent, as he is for goods which he carries.
There has grown up in this country a very peculiar exception to the
rules of evidence, in relation to traveller’s baggage. This exception per­




214

The Carriage o f Goods and Passengers.

[September,

mits tbe traveller to maintain bis action against tbe carrier by proving,
by bis own testimony, the contents of a lost trunk or box, and tbeir value.
It is said to rest altogether upon necessity. And, therefore, the testimony
of the wife of the owner is similarly adraissable. But it is always limited
to such things—in quantity, quality, kind, and value—as might reason­
ably be supposed to be caraied in such trunk or valise. Thus in the State
of Maine, where the plaintiff proved that he had delivered to the defend­
ants a box, to be carried to a certain place; that the box was not deliv­
ered ; that he had made a demand thereof; and that the defendants ad­
mitted its loss; and then “ offered to show, by his own testimony, (it not
appearing that he had any other means of showing it,) what was in said
box, and the value of the articles,” the declaration having alleged that
the box contained medical books, surgical instruments, and chemical ap­
paratus, it was held that the plaintiff’s oath was inadmissable. The rule,
with this limitation, seems reasonable and safe, and is quite generally ad­
opted. In Massachusetts it was distinctly denied by the Supreme Court,
but was afterwards established by statute.
The common carrier of goods or of passengers is liable to third parties
for any injury done to them by the negligence or default of the carrier, or
of his servants. So he is for injury to property by the wayside, caused by
his fault. But the negligence of the party suffering the injury, if it was
material and contributed to the injury, is a good defence for the carrier ;
unless malice on his part can be shown. W here the party injured is in
fault, the common carrier has still been held liable, if that fault was made
possible and injurious through the fault of the carrier. Thus, in a case
in England, where a party was sued, not as a carrier, hut for damage
caused by his fault, in which case the defendant’s servant left a horse and
cart unattended in a public street, and tbe plaintiff, a child under seven
years of age, during the driver’s absence, climbed on the wheel, and other
children urged forward the horse, whereby the plaintiff was thrown to the
ground and hurt, it was held that the jury were justified in finding a ver­
dict for the plaintiff, although the plaintiff was a trespasser, and contrib­
uted to the injury by his own act.
W hether a railroad company is responsible for fire set to buildings or
property along the road, without negligence on its part, has been much
considered, both in England and in this country. In some of our States
they are made so liable by statute provision. And this fact, together
with the general principles of liability for injury done, would seem to lead
to the conclusion, that they are not liable unless in fault, or unless made
so by statute.
A frequent cause of disaster, both on land on the ocean, is collision.
For this, a carrier by land, a railroad company for example, should he
held liable, in our view of this question, unless the company could show
that it took all possible care to prevent the collision ; and we do not know
that the general principles of law in relation to carriers could lead to any
other conclusion.
The common carrier at sea, whether under canvas or steam, must be
held to a careful, if not a strict, compliance with the rules and practice
applicable to each case of meeting another vessel, which have been devis­
ed for the purpose of preventing collision and of which we shall treat in
our chapter on the Law of Shipping.




1864.]

The N ew Internal Revenue Law.

215

T IIE NEW INTERNAL REVENUE LAW.

W e have prepared the following alphabetical table of the Taxes and Stamp
Duties under the Revenue Law, passed at the first session of the thirty-eighth
Congress, and approved June 30, 1864. It will be found very full and com­
plete, and, at the same time, extremely convenient and useful, nothing similar
to it having yet been published:—
Advertisements, tax on gross receipts for
.
. 3 per cent
Advertisements (exempt), all receipts for, to the amount of $600 .
No tax
in newspapers whose circulation does not
exceed two thousand copies .
. N o tax
Agents of Insurance Companies, license of
.
.
$10
Foreign Insurance companies, license of
.
.
$50
Agreement or contract, other than those specified as requiring a dif­
ferent duty; any appraisement of value or damage, or for any
other purpose ; for every sheet or piece of paper upon which
either of the same shall be written, a stamp duty of five cents is
required
.
.
.
.
.
. 5
cents
Provided, that if more than one appraisement, agreement, or con­
tract shall be written upon one sheet or piece of paper, a five
cent stamp for each and every additional appraisement, agree­
ment, or contract, is necessary.
Alcohol made of spirits which have paid taxes .
.
.
No tax
Apothecaries, license of (except wholesale and retail dealers who
have taken out a license therefor)
.
.
$10
whose sales do not amount to $1000 per annum
.
Exempt
Ale, lager beer and porter, per barrel of thirty-one gallons (and at a
like rate for any other quantity, or for fractional parts of a
barrel)
.
.
,
.
.
.
$1 25
Ale, lager beer and porter in bottles, for thirty-one gallons (when
the duty has not been previously paid on the liquors)
.
$1
Ambrotypes. Any person who makes ambrotypes for sale, license
is same as for “ Photographers.”
Animal oils, per gallon, tax
.
.
•
. 5
cents
Architects, for license
.
.
.
.
.
$10
Assayers, assaying gold and silver, or either, of a value not exceeding
in one year, $250,000, for license .
.
.
$100
when the value exceeds $250,000, and does not exceed
$500,000, for license
.
.
.
.
$200
when the value exceeds $500,000, for license
.
.
$500
Auctioneers, whose annual sales do not exceed $10,000, for license .
$10
whose annual sales exceed $ 10 ,00 0 , for license
.
$20
Auction sales of goods, real estate, merchandise, articles and things,
including all sales of stocks, bonds, and other securities, tax on
the gross amount of sale,
.
.
.
J of 1 per cent
Awnings, tax on gross amount of sales
.
.
. 5 per cent
Bags, tax on gross amount of sales, or total value removed for con­
sumption or for delivery
.
.
.
. 5 per cent
Banks, on average amount of deposits, each month
. l-24th of 1 per cent




216

The N ew Internal Revenue Law.

' [September,

Banks, on average amount of circulation, each month
. 1-12th of 1 per cent
issuing above 90 per cent of their capital in circulating
notes, additional tax of
.
. l- 6 th of 1 per cent
tax on average amount of capital beyond the amount invest­
ed in U. S. bonds, each month
.
.l-24th of 1 per cent
tax on all dividends, in scrip or money, .
.
. 5 per cent
not makiug dividends, to pay a tax on their profits, of
. 5 per cent
Bankers, using capital not exceeding $50,000, license duty of .
$100
using capital exceeding $50,000, for every additional $,1000
in excess of $500,000, license duty .
.
.
$2
Bank check, draft, or order for the payment of any sum of money
whatsoever, drawn upon any bank, banker, or trust company, or
for any sum exceeding ten dollars drawn upon any other person
or persons, companies or corporations, at sight or on demand, a
stamp duty of two cents
.
2 cents
Barytes, sulphate of, tax per 100 pounds
, 12 cents
Barks, hulls of, hereafter built or finished, on their valuation
. 2 per cent
. 2 i per cent
Barges, on gross receipts .
.
.
.
Beer. See “ Malt Liquors.”
Benzine, tax per gallon
.
.
.
.
. 20 cents
. 20 cents
Benzole, tax per gallon
.
.
.
.
.
5 mills
Bi-Carbonate of soda, tax per pound .
.
■ .
. 5 per cent
Billheads, tax on value of same
$10
Billiard tables, kept for use, tax for each table
Provided, That billiard tables kept for hire, and upon which a
license tax has been imposed, shall not be required to pay the
tax on billiard tables kept for use as aforesaid, anything herein
to the contrary notwithstanding.
Billiard rooms, license for each table .
.
.
.
$10
Bill of Exchange (inland), draft, or order for the payment of any
sum of money, not exceeding one hundred dollars
otherwise than at sight or on demand, or any
promissory note (except bank notes issued for cir­
culation, and checks made and intended to be
forthwith presented, and which shall be presented
to a bank or banker for payment), or any memo­
randum, check, receipt, or other written or printed
evidence of an amount of money to be paid on de­
mand, or at a time designated, for a sum not ex­
ceeding one hundred dollars, five cent stamp required 5 cents
And for every additional hundred dollars, or fractional part
thereof in excess of one hundred, five cent stamp
.
5 cents
Bill of Exchange (foreign), or letter of credit, drawn in but payable
out of the United States, if drawn singly, or other­
wise than iu a set of three or more, according to the
custom of merchants and bankers, are required to
have stamps the same as inland bills of exchange
or promissory notes.
If drawn in sets of three or more : for every bill of each set,
where the sum made payable shall not exceed one hundred
dollars, or the equivalent thereof, in any foreign currency
in which such bills may be expressed, according to the
standard of value fixed by the United States, two cent stamp 2 cents
And for every additional hundred dollars or fractional part
thereof in excess ol one hundred dollars, two cent stamp .
2 cents
Bill of Lading or receipt (other than charter-pay), for any goods,
merchandise, or effects to be exported from a port or place in
the United States to any foreign port or place, ten cent stamp . 10 cents




1864.]

The New Iaternal Revenue Law.

217

Bill of Sale, by which any ship or vessel, or any part thereof, shall
be conveyed to or vested in any other person or persons
when the consideration shall not exceed five hundred
dollars, fifty cent stamp .
50 cents
Exceeding five hundred and not exceeding one thousand dol­
lars. one dollar stamp
.
.
.
.
$1
Exceeding one thousand dollars for every additional amount
of five hundred dollars, or fractional part thereof, fifty cent
stamp .
.
.
.
.
.
50 cents
Binders’ board, tax on the value
.
.
.
.
3 per cent
Boards
.
.
.
.
.
.
No tax
Bolts, iron. See “ Iron.”
Bond.—For indemnifying any person for the payment of any sum of
money, where the money ultimately recoverable there­
upon is one thousand dollars or less, fifty cent stamp is
required
.
.
.
.
.
50 cents
Where the money ultimately recoverable thereupon exceeds
one thousand dollars, for every additional one thousand
dollars or fractional part thereof in excess of one thous­
and dollars, fifty cent stamp
50 cents
For the due execution or performance of the duties of any
$L
office, one dollar stamp .
.
.
.
Of any description, other than such a3 may be required in
legal proceedings, or used in connexion with mortgage
deeds, and not otherwise charged in this schedule, twentyfive cent stamp .
.
.
.
.
25 cents
Bonds of canal companies .
.
.
.
.
5 per cent
auction sales of, on gross amount of sales.
.
£ ol 1 per cent
Bone, manufacturers of, wholly or in part, if not. otherwise speci­
5 per cent
fied,
.
.
.
.
.
.
No tax
Bone dust
.
.
.
.
.
.
5 per cent
Bonnets
.
.
.
.
.
.
5 per cent
Books
.
.
.
.
.
.
Bootmaker, making articles to order as custom work, and not for
sale generally, shall to the amount of $500 be exempt from duty,
3 per cent
and for any excess beyond the amount of $500
5 per cent
Boots, ready made
.
.
.
.
.
Bowling alleys, license for each alley
$10
25 cents
Brandy distilled from grapes, tax per gallon
Brandy. See “ Spirits.”
3 per cent
Brass .
.
.
.
.
.
.
3 per cent
rolled, in rods or sheets
.
.
.
.
5 per cent
and, when no duty has been paid on ingots, pigs, or bars
No tax
Bread .
.
.
.
.
.
.
No tax
Breadstuffs
.
.
.
.
.
.
$50
Brewers, license tax
.
.
.
.
.
$25
those manufacturing less than 500 barrels per year
5 per cent
Bricks, manufactures 'of, not otherwise provided for
3 per cent
Bridges, toll, on gross receipts
.
.
.
.
5 per cent
Bristles, manufactures of. not otherwise provided for
Brokers, upon all sales of merchandise, produce, or other goods, £ of 1 per cent
upon all sales and contracts for sales of stocks, bonds, gold
and silver bullion and coin, foreign exchange, promis­
sory notes or other securities
.
. l- 2 0 th of 1 per cent
Brokers, license tax
.
.
.
.
.
$50
pawn, using capital not exceeding $50,000, license tax
$50
do., using capital in excess of $50,000, for every additional
$1,000 in excess of $50,000,
$2




218

The New Internal Revenue Law.

[September,

Builders’ license tax, when'contracts do not exceed $25,000, and are
over $2,500 .
.
.
.
.
$25
when contracts in anyone year exceed $25,000, on every ad­
ditional $1,000 in excess of $25,000
$1
whose contracts do not exceed $2,500 in any one year
Exempt
Bullion in lump, ingot, bar or otherwise, to be paid by the assayer,
and stamped
.
.
.
.
i of 1 per cent
used in the manufacture of silver ware, silver bullion rolled
or prepared for plated use exclusively
No tax
Butchers, license tax
.
.
.
;
.
$10
whose annual sales do not exceed $ 1 ,0 0 0 , and butchers
who retail butchers’ meat exclusively, by themselves
or agents, and persons who sell shell or other fish,
or both, travelling from place to place, and not from any
shop or stand, license tax
.
.
.
$5
Burning fluid .
.
.
.
.
. N o tax
But t er .
.
.
.
.
.
.
No t ax
Calves exceeding three months old, slaughtered, each
under three months old, each .
.
.
.
Calfskins, tanned
.
.
.
.
.
patent
.
.
.
.
Canals, on gross receipts
,
when the water is used for mining purposes, on gross receipts
Canal companies, interest on bonds, coupons, dividends, or profits
carried to the account of any fund
navigation companies, on interest, coupons, dividends,
or profits, carried to the account of any fund
Candles, of whatever material made .
Candy sugar. See “ Sugar Candy.”
Caps .
.
.
.
.
.
Cards, printed .
.
.
.
.
Carriages, &e., valued at $50 and not exceeding $100, includin0
the harness, annual tax
valued at above $ 1 0 0 and not above $ 20 0 , annual tax
exceeding in value $200 and not exceeding $300, an
nual tax .
.
.
.
exceeding $300 and not exceeding $500, annual tax
exceeding $500, annual tax
Cassia, ground, and all immitation of, per pound
Castile soap. See “ soap.”
Cattle brokers, whose annual sales do not exceed $10,000
whose annual sales exceed $ 10 ,0 0 0 , for each addition
al $ 1,000
Cattle, slaughtered, over three months old, except when slaughtem
for their hides and tallow exclusively, each
under three months old, each .
slaughtered by any person for his own consumption, not ex
ceediug five in number
Cavendish tobacco, per pound
Certificate of stock in any incorporated company, twenty-five cen
stamp required
of profits, or any certificate or memorandum showing an
interest in the property or accumulations of any incor
porated company, if for a sum not less than ten do!
larsand not exceeding fifty dollars, ten cent stamp
exceeding fifty dollars and not exceeding one thousand dol
lars, twenty-five cent stamp




40 cents
5 cents
5 percent
5 per cent
2 J per cent
2 | per cent
5 per cent
5 per cent
5 per cent
5 per cent
5 per cent
$1
$2

$3
$6
$10
1

cent
$10
$1

40 cents
5 cents
No tax
35 cents
25 cents

10

cents

25 cents

1864.]

The New Internal Revenue Law.

Certificate exceeding one thousand dollars, for every additional one
thousand dollars, or fractional part thereof, twenty,
five cent stamp
.
.
.
.
any certificate of damage, or otherwise, and all other cer­
tificates, or documents issued by any port warden, ma­
rine surveyor, or other person acting as such, twentyfive cent stamp
.
.
.
.
of deposit of any sum of money in any hank or trust com­
pany, or with any banker or person acting as such :
if for a sum not exceeding one hundred dollars, two cent
stamp
.
.
.
.
.
for a sum exceeding one hundred dollars, five cent stamp
of any other description than those specified, five cent
stamp
.
Cement, made wholly or in part of glue, to be sold in a liquid state
per gallon .
.
.
.
.
.
Chairs, timber for, partially wrought and unfinished
Charcoal
.
Charter party.—Contract or agreement, for the charter of any ship
or vessel, or steamer, or any letter, memorandum,
or other writing, between the captain, master, or
owner, or person acting as agent of any ship or
vessel, or steamer, and any other person or persons
for or relating to the charter of such ship or ves­
sel, or steamer, or any renewal or transfer there­
of, if the registered tonnage of such ship or ves­
sel, or steamer, does not exceed one hundred and
fifty tons, one dollar stamp is required .
if the registered tonnage exceeds one hundred and fifty tons, &
does not exceed three hundred tons, three dollars .
if the registered tonnage exceeds three hundred tons, and does
not exceed six hundred tons, five dollar stamp .
exceeding six hundred tons, ten dollar stamp
Cheroots. See “ Cigars.”
Check. See “ Bank Check.”
Chemical productions, all uncompounded, not otherwise provided for
Cheese
.
.
.
.
.
.
Chocolate, prepared, per pound
.
.
.
.
Cigars.—Cigarettes made of tobacco inclosed in a paper wrapper,
valued at not over $5 per 1 0 0 packages, each containing
not more than 25 cigarettes, per 100 packages
Cigarettes made of tobacco inclosed in a paper wrapper,
valued at over $5 per 100 packages, shall be subject to
the same duties as cigars of like value,
made wholly of tobacco, and also on those known as che­
roots, or short sixes, valued in each case at not over §5
per 1 .0 0 0 , per 1, 000
.
.
.
.
valued at over $5 and not over $15 per 1,000, per 1,000 .
valued at over $15 and not over $30 per 1,000, per 1,000 .
valued at over $30 and not over $45 per 1,000, per 1,000 .
valued at over $45 per 1,000, per 1,000
Circulars, printed
Circuses, on gross receipts
.
.
.
.
license tax
.
.
.
.
.
Cistern bottoms. See “ Molasses,” per pound
Civil Engineers, license tax
.
.
.
.
Claim Agents, license tax .
.
.
.
Clocks, tax on value of
movements, sold without being cased .




219

25 cents

25 cents

2 cents
5 cents

5 cents
40 cents
No tax
No tax

$1

$3
$5
$10

5 per cent
No tax
1 J cent
$1

$3
$8

$15
$25
$40
5 per cent
2 per cent
$100

lj- cent
$10
$10

5 per cent
5 per cent

220

The N ew Internal Revenue Law.

[September,

Cloth, and all textile or knitted, or felted fabrics of cotton, wool, or
other materials, before the same has been dyed, printed, or
bleached, and on all cloth painted, enamelled, shirred, tar­
red, varnished, or oiled
,
.
.
. 5 per cent
or fabrics, when made of thread, yarn, or warps, upon which
a duty shall have been assessed and paid, shall be assessed
and pay a duty on the increased value only.
Clothing, or articles of dress, made to order—on excess over $600 . 3 per cent
ready made
.
.
.
.
. 5 per cent
Cloths.—On all cloths of silk, cotton, or other material, dyed, print­
ed, or bleached, on which a duty or tax shall have been
paid before the same were so dyed, printed, or bleached,
the duty of 5 per centum shall be assessed only on the in­
creased value thereof.
Cloves, ground, and all imitations of, per pound
.
.
1 cent
Clove stems, ground, and all imitations, per pound
.
.
1 cent
Coal, all mineral, except pea coal, or dust coal, per ton .
.
5 cents
gas. See “ Gas.”
tars produced in the manufacture of gas .
.
.
No tax
oil, produced by the distillation of coal, asphaltum or shale,
exclusively, refined, per gallon
.
.
. 1 5 cents
illuminating oil, refined, produced by the distillation of coal,
asphaltum, shale, peat, .petroleum, or rock oil, and all other
bituminous substances used for like purposes, per gallon . 20 cents
oil distillers, license tax
.
.
.
.
$50
Cocoa, prepared, per pound
.
.
.
.
1-J cent
Coffee, ground, per pound .
.
.
.
. 1
cent
all preparations of which coffee forms a part, and in all ground
or unground substitutes for coffee, per pound .
.
1 cent
Coke .
.
.
.
.
.
No tax
Commercial brokers, license tax
.
.
.
.
$20
Concert halls, license tax .
.
.
.
.
$100
Concentrated milk
.
.
.
.
.
No tax
Confectioners, license tax .
.
.
.
.
$10
whose gross annual sales do not exceed $1000
.
No tax
Confectionery, made wholly or in part of sugar, same as “ Sugar Candy.”
Contractors, license tax, when contracts do not exceed $25,000, but
are over $2,500
.
.
.
.
$25
whose contracts in any one year exceed $25,000, for
each additional $1,000 in excess of $25,000
.
$1
Contract.—Broker’s note, or memorandum of sale of any goods or
merchandise, stocks, bonds, exchange, notes of hand,
real estate, or property of any kind or description, is­
sued by brokers, or persons acting as such, for each
note or memorandum of sale, ten cent stamp re­
quired
.
.
.
.
. 1 0 cents
Conveyancers, license of .
.
.
.
.
$10
Conveyance.—Deed, instrument, or writing, whereby any lands, tene­
ments, or other realty sold.shall be granted,assigned,
transferred, or otherwise conveyed to, or vested in,
the purchaser or purchasers, or any other person or
persons, by his, her, or their direction, when the con­
sideration or value does not exceed five hundred
dollars, fifty cent stamp
.
.
. 5 0 cents
when the consideration exceeds five hundred dollars,
and does not exceed one thousand dollars, one
dollar stamp
.
.
.
.
$1
and for every additional five hundred dollars, or frac­




18G4.]

The New Internal Revenue Law.

tional part thereof, in excess of one thousand dol­
lars, fifty cent stamp
Copper, rolled, tax on valuation
.
.
.
.
ingots, pigs, or bars
.
.
.
.
when duty has not been paid on ingots, bars, or pigs
manufactures of, not otherwise provided for
Cotton, manufactures of, wholly or in part, not otherwise provided
for
fabrics, woven, knit, or felted, before dyed, printed, bleached,
or prepared in any other manner
umbrellas, and parasols.
.
•
.
.
raw, per pound .
.
.
.
.
Coupons
.
.
.
.
.
.
Custom House brokers, license tax .

221

50 cents
3 per cent
3 per cent
5 per cent
5 per cent
5 per cent
5 per cent
5 per cent
2 cents
5 per cent
810

Daguerreotypes, or any other sun picture, being copies of engravings
or works of art, or used for the illustration of books,
and on photographs so small in size that a stamp
cannot be affixed .
.
.
. 5 per cent
Dentists, license tax
.
.
.
.
.
$10
Deer Skins. See “ Skins.”
Diamonds, tax on value sold
.
.
.
.
10 per cent
Provided, That when diamonds, emeralds, precious
stones, or imitations thereof, imported from foreign coun­
tries, or upon which import duties have been paid, shall
be set or reset in gold or any other material, the duty shall
be assessed and paid upon the value only of the settings.
Distillers, license tax
.
.
.
.
.
$50 00
if making less than 300 barrels per year, license
.
§25 00
of apples, grapes, and peaches, making less than 150 bar­
rels per year, license
.
.
.
.
§12 50
Distilled spirits. See “ Spirits.”
Distilled spirits.—The duty on spirituous liquors and all other spir­
ituous beverages enumerated in the Tax Bill, is to
be collected at no lower rate than the basis of
first proof, and shall be increased in proportion
for any greater strength than the strength of
proof.
The term first proof is declared to mean that
proof of a liquor which corresponds to 50 degrees
of Tralles’ ceutisimal hydrometer, at the tempera­
ture of 60 degrees of Fahrenheit’s thermometer ;
and on levying duties on liquors above and be­
low proof, the table contained in the Manuel for
inspectors of spirits, prepared by Professor M c­
C u llo ch , under the superintendence of Professor
B a c h e , and adopted by the Treasury Department,
is to be used, and taken as giving the proportions
of absolute alcohol in the liquid guaged and prov­
ed, according to which duties shall be levied.
Dividends, annual income from, when exceeding §600 and not ex­
ceeding §5,000, on the excess over §600
.
. 5 per cent
on the excess over §5,000 and not exceeding §10,000 .
per cent
on the excess over § 10,000
.
.
. 1 0 per cent
oi' banks, trust companies, savings institutions, fire, ma­
rine, life, and inland insurance companies, and dividends
generally
.
.
.
.
. 5 per cent
Dog skins, dressed in the rough, tax on value of
.
. 5 per cent




522

The New Internal Revenue Law.

[September,

Draining tiles, and earthen, and stone water pipes, tax on value of . 3 per cent
Dressmakers making articles to order, as custom work, and not for
sale generally, shall, to the amount of $600, be exempt
from duty, and for any excess beyond $600 .
. 3 percent
3 per cent
Earthen water pipes, drain tiles, &c., tax on value of
$10
Eating houses, license tax .
.
.
.
.
No tax
when the gross annual sales do not exceed $ 1,000
10 per cent
Emeralds. See “ Diamonds.”
.
.
.
.
Enamelled leather. See “ Leather.”
3 per cent
Engines, locomotive and marine
.
.
.
.
5 per cent
Engravers, productions of .
Entry of any goods, wares or merchandise, at any custom-house,
either for consumption or warehousing, not exceeding $ 1 0 0
25 cents
in value, twenty-five cent stamp required
exceeding $100 and not.exceeding $500 in value, fifty cent stamp 50 cents
exceeding $500 in value, one dollar
$1
for the withdrawal of any goods or merchandise from bonded
50 cents
warehouse, fifty cent stamp
Erasive soap. See “ Soap.”
5 per cent
Essential oils of all descriptions, tax on value of
$10
Exhibitions, not otherwise provided for, license tax
3 per cent
Express companies, on gross receipts .
Felted fabrics .
.
.
.
.
. 5 per cent
Felloes, timber for, partially wrought and unfinished
.
.
No tax
Ferry boats, on gross receipt .
.
. 3 per cent
Fine Cut Tobacco. See “ Tobacco.”
Fire insurance companies, on dividends
.
.
. 5 per cent
Fish, preserved, tax on value of
.
.
. 5 per cent
Flax, manufactures of, not otherwise provided for
.
. 5 per cent
prepared for textile or ielling purposes, is not to be consider­
ed a manufacture until actually woven or felted into fabric
for consumption.
Flour . .
.
.
.
.
.
.
No tax
Fork handles, timber for, partially wrought and unfinished
.
No tax
Freestone. See “ Stone.”
Friction matches, or lucifer matches, or other articles made in part
of wood, and used for like purposes, in parcels or pack­
ages containing one hundred matches or less, for each
parcel or package, one cent
.
.
. 1
cents
when in parcels or packages containing more than one hun­
dred and not more than two hundred matches, for each
parcel or package, two cents
.
.
. 2
cents
and for every additional one hundred matches, or fractionpart thereof, one cent .
.
.
. 1
cent
for all cigar lights and wax tapers, double the rate herein
imposed upon friction or luciler matches : Provided, That
the stamp duties herein provided for on friction or lucifer
matches made in part of wood, or cigar lights or wax ta­
pers, shall not be imposed until the 1 st day of September,
eighteen hundred and sixty-four ; but, until that time,
the tax shall be assessed and collected as heretofore, and
on and after said first day of September, every package
or parcel sold by any person, firm, company, or corpora­
tion, shall be stamped as herein required.
Fruits, preserved
.
.
.
.
. 5 per cent
Furniture, made of wood, sold in the rough or unfinished.
. 5 per cent




1864.]

The N ew Internal Revenue Law.

223

Furniture, made of wood, on which a duty has been paid, when sold
in a finished condition, shall pay a duty only on the in­
creased value of
.
.
.
. 5 per cent
Furs of all descriptions, made up or manufactured
.
. 5 per cent
manufactured, on which a duty has been paid before manufac­
tured, shall be assessed only on the increased value when so
manufactured.
Gains, annual. See “ Income.”
Gas, when the product shall not be above 200,000 cubic feet, per
month, per 1,000 cubic feet .
.
.
.
10 cents
when the product shall be above 200, 000 and not exceeding
500,000 cubic feet per month, per 1,000 cubic feet
15 cents
when the product shall be above 500,000 and not exceeding
5,000,000 of cubic feet per month, per 1,000 cubic feet
20 cent3
when the product shall be above 5,000,000, per 1,000 cubic feet 25 cents
all illuminating, same as “ Coal Gas.”
Gas fitters, license of
$10
Gasoline. See “ Naptha.” .
.
.
.
. 5 per cent
Gaugers’ returns, if for a quantity not exceeding 500 gallons gross,
ten cent stamp required .
.
.
.
10 cents
exceeding 500 gallons gross, twenty-five cent stamp required 25 cents
Gelatine of all descriptions, in solid state, per pound
1 cent
Gift enterprises, license tax
.
.
.
.
$50
Ginger, ground, and all imitations of, per pound
1 cent
Glass, manufactures of, not otherwise provided for
.
. 5 per cent
Gloves, mittens, &c., tax on the value
.
.
. 5 per cent
Glue, in a liquid form, per gallon
.
.
.
.
40 cents
in a solid state, per pound
.
.
.
.
1 cent
Goat skins, tax on the value of
.
.
. 5 per cent
Gold leaf, per pack containing not more than 20 books of 25 leaves 18 cents
foil, per ounce troy .
.
.
.
.
$2
watches, composed wholly or in part of gold or gilt, kept for
use, valued at $ 1 0 0 , or less, each
$1
valued at over $ 1 0 0 , each
.
.
.
.
$2
manufactures of, not otherwise provided for
.
. 5 per cent
Goods made for the use or consumption of maker
N o tax
Gunpowder, and all explosive substances used for mining, artillery,
or sporting purposes, when valued at 28 cents per
pound, or less, per pound
1 cent
when valued above 28 cents per pound, and not ex­
ceeding 38 cents per pound, per pound .
l i cent
when valued above 38 cents per pound, per pound
8 cents
Gutta percha, manufactures of
.
.
. 5 per cent
No tax
Gypsum
.
.
.
.
.
.
Harness leather. See “ Leather.”
Hats, tax on the value of .
.
.
.
. 5 per cent
Hemp, manufactures of, not otherwise provided for
.
. 5 per cent
No tax
Headings
.
.
.
.
.
.
10 cents
Hogs, slaughtered, each .
.
.
.
.
Hog skins, tanned or dressed
.
.
.
. 5 per cent
$3
Hollow ware, iron, per ton of 2,000 pounds
Hoop iron. See “ Iron.”
No tax
Hoops .
.
.
. . .
Hoop skirts, material for the manufacture of, exclusively .
No tax
Horned cattle, slaughtered. See “ Cattle.”
Horn, manufactures of, not otherwise provided for
.
. 5 per cent
Horse skins, tanned and dressed
.
.
.
. 5 per cent




224

The N ew Internal Revenue Law .

[September,

Horse Healers; license tax .
.
.
.
.
Horse Shoes, per ton. See “ Iron.”
Hotels, where the rent or the valuation of the yearly rental shall be
§ 2 0 0 or less
.
.
.
.
.
where the rent or the valuation of the yearly rental shall be
in exceess of § 20 0 , for each additional § 1 0 0 or fractional
part thereof, in excess of §200
.
.
.
Hnbs, timber for, partially wrought and unfinished
.
.
Hulls, as launched, of ships, barks, brigs, schooners, sloops, sailboats,
steamboats, canal boats, and all other vessels or water craft,
not including engines or rigging, hereafter built or finished .

§10
§1 0

§5
No tax
2

per cent

Illuminating Oil, coal. See “ Oil.”
Income, annual, of every person residing in the United States, or of
any citizen of the United States residing abroad, when
exceeding §600 and not exceeding §5,000, on the excess
above §600
.
.
.
.
. 5 per cent
do., on excess over §5,000 and not exceeding §10,000
. Vj per cent
do., on excess over § 1 0 ,0 0 0 ,
.
.
. 1 0 per cent
interest on United States securities is to be included in esti­
mating incomes, and taxed at same rate as other income.
So, also, the interest on all mortgages, bonds, notes, &c.,
(over and above the interest paid out upon mortgages,
bonds, notes, &c.,) whether due or paid or not, if good
and collectable, shall be included.
Only one deduction of §600 shall be made from the incomes
of all the members of any family, except where it is de­
rived from the separate estate, &c., of the wile or child.
The net profits realized by sales of real estate purchased
within the year shall be chargeable as income, and the
losses on sales of real estate so purchased shall be deducted
from the income for the year.
In estimating income, all national, state, and municipal taxes
lawfully paid during the year (except national income
tax) shall be deducted from the income for the year.
Also, the salary or pay received in the civil, military or
naval service of theU. S. shall be deducted. (Seesalary).
Also, the income derived from dividends on shares of the
stock of any corporation or company, and the interest on
any bonds or other evidence of debt of any such corpora­
tion or company which shall have been assessed and taxed
on same, paid by the said company, shall be deducted.
Also, rent of residence actually paid shall be deducted.
Also, all payments of interest on mortgages, notes, &c., shall
be deducted.
And further, in estimating deductions from income, when any
person rents buildings, lands, or other property, or hires
labor to carry on land, or to conduct any other business
from which such income is actually derived, or pays in­
terest upon aDy actual incumbrance thereon, the amount
actually paid for such rent, labor, or interest, shall be
deducted ; and, also, the amount paid out for usual or
ordinary repairs, not exceeding the average paid out for
such purposes lor the preceding five years, shall be de­
ducted, but no deduction shall be made for any amount
paid out for new buildings, permanent improvements, or
betterments, made to increase the value of any property
or estate.




1864.]

The N ew Internal Revenue Law.

225

India Rubber, manufactures of, not otherwise provided for
5 per cent
Insurance Companies on all dividends
5 per cent
do., on gross receipts of premiums and assessments
l£ per cent
do., foreign, same
.
.
.
.
11 per cent
Insurance (Life).—Policy of insurance, or other instrument, by
whatever name the same shall be called, whereby any
insurance shall be made upon any life or lives—
When the amount insured shall not exceed one thousand dol­
lars, twenty-five cent stamp is required
25 cents
Exceeding one thousand dollars and not exceeding five thous­
and dollars, fifty cent stamp is required
50 cents
Exceeding five thousand dollars, one dollar stamp .
61
Insurance (Marine, Inland, and Fire).—Each policy of insurance or
other instrument, by whatever name the same shall be
called, by which insurance shall be made or renewed
upon property of any description, whether against
perils by the sea or by fire, or other peril of any kind,
made by any insurance company, or its agents, or by
any other company or person, the premium upon
which does not exceed ten dollars, ten cent stamp
10 cents
Exceeding ten and not exceeding fifty dollars, twenty-five
cent stamp
.
25 cents
Exceeding fifty dollars, fifty cent stamp .
50 cents
Insurance Agents, license tax
.
.
.
.
610
do., foreign, license tax
.
.
.
.
650
Intelligence Office Keepers, license tax
$10
Interest on bonds and dividends of canal Companies
5 per cent
Iron, cast, used for bridges, or other permanent structures, per ton .
63
railroad, per ton
.
.
.
.
.
63
railroad, re-rolled, per ton
.
.
.
.
62
blooms, slabs, or loops, when made in forges or bloomeries,
directly from the ore, per ton
63
advanced beyond slabs, blooms, or loops, and not advanced
beyond bars, per ton
.
.
.
.
63
band, hoop and sheet, not thinner than No. 18 wire gauge, per
ton
.
.
.
.
.
.
63
plate, not less than 1 of an inch in thickness, per ton
63
band, hoop, or sheet, thinner than No. 18 wire gauge, per ton
65
plate, less than 1 of an inch in thickness, per ton
65
nails, cut, and spikes (not including nails, tacks, brads, or
finishing nails, usually put up and sold in papers, whether
in papers or otherwise, nor horse-shoe nails wrought by
machinery), per ton
.
.
.
.
bars, rods, axe poles, bands, hoops, sheets, plates, nails, and
spikes, upon which duty has been levied and paid, are only
subject to an additional duty of, per ton
62
rivets, exceeding £ of an inch in diameter, per ton .
65
nuts and washers, not less than two ounces each in weight, per
ton
.
.
.
.
.
.
65
bolts, exceeding 5-16th of an inch in diameter, per ton .
65
rivets, nuts, washers, and bolts, when the duty upon the iron
from which said articles shall have been made has been ac­
tually paid, only an additional duty of, per ton
62
stoves, per ton
.
.
.
.
63
hollow ware, per ton .
.
.
.
.
63
castings of iron exceeding 10 pounds in weight, for each cast­
ing, not otherwise provided for, per ton
63
castings of iron and iron of all descriptions, advanced beyond
VOL. LI. ---NO. IV .
14




226

The N ew Internal Revenue Law.

[September,

pig-iron, blooms, slabs, or loops, upon which no duty has
been assessed or paid in the form of pig-iron, shall be asses­
sed and pay, in addition to the foregoing rates, when so
advanced, per ton
.
.
.
.
$3
when no duty has been assessed or paid thereon in the form of
blooms, slabs, or loops, shall pay, in addition to the fore­
going rates of iron advanced, per ton .
.
.
$3
pig, per ton
.
.
.
.
.
§2
Iron, manufactures of, not otherwise provided for, tax on the valuation 5 per cent
steam engines, including locomotive and marine engines
. 3 per cent
Ivory, manufactures of, not otherwise provided for
.
. 5 per cent
Jacks, owners of, license tax
Japan, same as “ Varnish.”
Jewelry, on the valuation .
.
.
.
Jugglers, license tax
.
.
.
.
Jute, manufactures of, not otherwise provided for, on the valuation
Kid Skins, on the valuation
Knitted fabrics, on the valuation
Lager Beer. See “ Malt Liquors.”
Lambs, slaughtered, each, .
.
.
.
.
exemption same as with “ Sheep.”
L a n d Warrant Brokers, license tax .
.
.
.
Lard oil, per gallon
.
.
.
.
.
Lasts, timber lor, partially wrought and unfinished
Laths .
.
•
.
.
.
Lawyers, license tax
.
.
.
.
.
Lead, white, per 100 pounds
.
.
.
.
manufactures of, not otherwise provided for
ingots, pigs or bars .
.
.
.
.
sheet
.
.
.
.
.
.
pipes
.
.
Leaf, gold, per package containing not more than 20 books of 25
leaves each
.
.
.
.
.
Lease, agreement, memorandum, or contract for the hire, use, or rent
of any land, tenement, or portion thereof, where the rent or
rental value is three hundred dollars per annum or less,
filty cent stamp required .
.
.
.
Where the rent or rental value exceeds the sum of three hund­
red dollars per annum, for each additional two hundred
dollars, or fractional part thereof in excess of three hundred
dollars, fifty cent stamp required
Leather, enamelled
.
.
.
.
.
oil dressed
.
.
.
.
.
patent .
.
.
.
.
.
Japan .
.
.
.
.
.
of ail descriptions, tanned or partially tanned, in the rough
of all descriptions, curried or finished .
all previously assessed in the rough, upon which duties have
been actually paid, shall be assessed on the increased value
only.
manulactures of, not otherwise provided for
upon which a duty has previously been paid, when it shall
be manufactured into gloves, mittens, or moccasins, the
duty shall only be assessed upon the increased value
thereof when so manufactured.




$10
10

per cent
$20

5 per cent
5 per cent
5 per cent
5 cents
$25
5 cents
No tax
No tax
$10

35 cents
5 per cent
3 per cent
3 per cent
3 per cent
18 cents

50 cents

50 cents
5 per cent
5 per cent
5 per cent
5 per cent
5 per cent
5 per cent

5 per cent

1864.]

The New Internal Revenue Law.

227

Legal documents, stamp duty on writ, or other original process; by
■which any suit is commenced in any court of re­
cord, either of law or equity, fifty cent stamp . 50 cents
where the amount claimed in a writ, issued by a
court not of record,is one hundred dollars or over,
fifty cent stamp .
.
.
.
50 cents
upon every confession of judgement, or cognovit,
for one hundred dollars or over, (except in those
cases where the tax for the writ of a commence­
ment of suit has been paid,) fifty cent stamp
50 cents
writs or other process on appeal from justices’
courts, or other courts of inferior jurisdiction to
a court of record, fifty cent stamp
50 cents
warrants of distress, when the amount of rent claim­
ed does not exceed one hundred dollars, twentyfive cent stamp .
.
.
.
25 cents
when the amount claimed exceeds one hundred dol­
lars, fifty cent stamp
.
.
. 50 cents
Provided, That no writ, summons, or other pro­
cess issued by and returnable to a justice of the
peace, except as hereinbefore provided, or by any
police or municipal court, having no larger juris­
diction as to the amount of damages it may
render than a justice of the peace in the same
State, or issued in any criminal or other suits
commenced by the United States, or any State,
shall be subject to the payment of stamp duties :
And provided, further, That the stamp duties im­
posed by the foregoing schedule B on manifests,
bills of lading, and passage tickets shall not ap­
ply to steamboats or other vessels plying between
ports of the United States and ports in British
North America.
affidavits in suits or legal proceedings, shall be ex­
empt from stamp duty.
Legacies.—Any person or persons having charge or trust, as admin­
istrators, executors, or trustees, of any legacies or dis­
tributive shares arising from personal property, of any
kind whatsoever, where the whole amount of such per­
sonal property aforesaid shall exceed the sum of $L,000
in actual value, passing after the passage of this act,
from any person possessed of such property, either by
will, or by the intestate laws of any State or Territory,
or any personal property, or interest thereon, transfer­
red by deed, grant, bargain, sale, or gift, made, or in­
tended to take effect iu possession or enjoyment alter
the death of the grantor or barginor, to any person or
persons, or to any body or bodies, politic or corpo­
rate, in trust or otherwise, are subject to the follow­
ing taxes :—Where the person or persons entitled to
any beneficial interest in such property shall be the li­
neal issue, or lineal ancestor, brother or sister to the
person who died possessed of such property, for each
and every $ 1 0 0 of the clear value of such interest in
such property
.
.
.
.
where the person or persons entitled to any beneficial in­
terest in such property, shall be a descendant of a bro­
ther or sister of the person who died possessed of such




X

228

The N ew Internal Revenue Law.

[September,

property, for each and every $ 1 0 0 of the clear value of
such interest
.
.
.
.
$2
■where the person or persons entitled to any benificial in­
terest in such property, shall be a brother or sister of
the father or mother, or a descendant of a brother or
sister of the lather or mother ot the person who died
possessed of such property, for each and every $ 1 0 0
of the clear value of such interest
$4
■where the person or persons entitled to any beneficial in­
terest in such property, shall be a brother or sister of
the grandfather or grandmother of the person who died
possessed of such property, for each and every $ 1 0 0 of
the clear value of such interest .
$5
w here the person or persons entitled to any beneficial in­
terest in such property, shall be in any other degree
of collateral consanguinity than is stated above, or
shall be a stranger in blood to the person who died
possessed as aforesaid, or shall be a body politic or cor­
porate, for each and every $ 1 0 0 of the clear value of
such interest .
.
.
.
.
$6
passing by will, or by the laws of any State or Territory,
to the husband or wife of the person who died possess­
ed ol the property
.
.
.
.
No tax
License fee of $10 shall be required of every person, firm, or corpo­
ration engaged in any business, trade, or profession, whatso­
ever, lor which no other license is herein required, whose
gross annual receipts therefrom exceed $ 1,000 per annum.
“When the annual gross receipts or sales of any apothecaries,
confectioners, eating houses, tobacconists, or retail dealers, ex­
cept retail dealers in spirituous and malt liquors, shall not
exceed $ 1 ,0 0 0 , they shall not be required to pay for license.
Lime, on the total valuation
.
.
.
.
3 per cent
Linseed oil, per gallon
.
.
.
.
.
5 cents
Liquors, malt. Bee “ Malt Liquors.”
Lithographers, productions of, on the valuation
5 per cent
Livery stable keepers, license tax .
.
.
.
$10
Lottery ticket dealers, license tax .
.
.
.
$100
Lotteries, on gross receipts
.
.
.
.
5 per cent
Lumber
.
.
.
.
.
.
No tax
Magazines, on the gross receipts for sales
.
.
.5
for all advertisements, on gross receipts
.
. 3
Malt .
.
.
.
.
.
.
Malt liquors, duly, per barrel, containing not more than 31 gallons,
fractional parts to pay at a like rate
.
in bottles, to pay according to the quantity contained
therein at the rate of, per barrel of 31 gallons, when the
duty has not been previously paid on the liquors con­
tained therein
.
.
.
.
Manifest for custom house entry, or clearance of the cargo of any
ship, vessel or steamer, for a foreign port:
if the registered tonnage'of such ship, vessel, or steamer,
does not exceed three hundred tons, one dollar
.
exceeding three hundred tons, and not exceeding six hun­
dred tons, three dollars .
.
.
.
exceeding six hundred tons, five dollars
.
.
Manufacturers, license of .
.
.
.
.
Manufactures,not otherwise provided for,of bone,brass,bristles,copper,




per cent
per cent
No tax
$1 25

$ 1 00

$1 00

$3 00
$5 00
$10 00

1864.]

The N ew Internal Revenue la w .

229

cottoD, flax, glass, gold, gutta percha, hemp, horn, In­
dia rubber, iron, ivory, jute, lead, leather, paper,
pottery, silk, silver, steel, tin, willow wood, wool,
worsted, or other materials, a tax on the valuation
of
.
.
.
. 5 per cent
Marble. See “ Stone.”
monumental stones, tax on the value o f,
.
. 5 per cent
Masts, spars, and ship or vessel blocks, a tax on the valuation of . 2 per cent
No tax
Match wood, timber for, partially wrought and unSnished .
Measurers’ returns, if for a quantity not exceeding one thousand bush­
10 cent*
els, ten cent stamp
exceeding one thousand bushels, twenty-five cent
25 cent*
stamp
.
.
.
.
Meats, preserved .
.
.
.
.
. 1i per cent
No tax
Meal, made from grain
.
.
.
.
.
.
Medicines or preparations.—For and upon every packet, box, bot­
tle, pot, phial, or other enclosure, containing any pills,
powders, tinctures, troches, lozenges, sirups, cordials,
bitters, annodynes, tonics, plasters, liniments, salves, oint­
ments, pastes, drop3, waters, essences, spirits, oils, or
other medicinal preparations or compositions, whatsowherein the person making or preparing the same
ever, made and sold, or removed for consumption
and sale, by any person or persons whatever,
has, or claims to have any private formula or occult se­
cret, or art, for the making or preparing the same, or
has, or claims to have, any exclusive right or title to
the making or preparing the same, or which are prepar­
ed, uttered, vended, or exposed for sale under any let­
ters patent, or held out or recommended to the public
by the makers, venders, or proprietors thereof, as proa
prietary medicines, or as remedies or specifics for any
disease, diseases, or affections, whatever, affecting the hu­
man or animal body, as follows :—where such packet,
box, bottle, pot, phial, or other enclosure, with its con­
tents, shall not exceed, at retail price, or value, the sum
1 cent
of twenty-five cents, one cent stamp required
where such packet, box, bottle, pot, phial, or other enclos­
ure, with its contents, shall exceed the retail price or
value of twenty-five cents, and not exceed the retail
2 cents
price or value of filty cents, two cent stamp .
where such packet, box, bottle, pot, phial, or other enclos­
ure, with its contents, shall exceed the retail price or
value of fifty cents, and shall not ex»eed the retail price
3 cents
or value of seventy-five cents, three cent stamp
where such packet, box, bottle, pot, phial, or other enclos­
ure, with its contents, shall exceed the retail price or
value of seventy-five cents, and shall not exceed the re­
4 cents
tail price or value of one dollar, four cent stamp
where such.packet, box, bottle, pot, phial, or other enclos­
ure, with its contents, shall exceed the retail price or
value of one dollar, for each and every fifty ceuts, or
fractional part thereof, over and above the one dollar,
2 cents
as before mentioned, an additional two cent stamp
la cent
Melado, per pound
.
.
.
.
.
Melodeons, same as “ Pianofortes.”
3 per cent
Metal, yellow sheathing, in rods or sheets, on the valuation
Milliners, making articles to order as custom work, and not for




230

The N ew Internal Revenue Law .

[September,

sale generally, shall, to the amount of $600, be exempt from
duty, and for any excess beyond the amount of $600, shall pay
a duty of
.
.
.
.
. 3 per cent
Mineral coal, except pea coal, and dnst coal, by which terms is meant
coal that can pass through a five-eights and over three5 cents
eights inch mesh, per ton
Mineral water from springs, for each bottle containing not more than
I cent
a pint
.
.
.
.
.
1 cent
containing more than a pint, and not over a quart .
1 cent
containing over a quart, for each quart or fraction .
artificial soda waters, sarsaparilla water, &e., a tax on
the valuation of
.
.
. 5 per cent
Mittens, a tax on the value of
.
.
.
. 5 per cent
Moccasins, on the valuation of
.
.
. 5 per cent
Molasses, produced from the sugar-cane, and not from sorghum or
imphee. per gallon
.
.
.
. 5
cents
syrup of, or sugar-cane juice, when removed from the plan­
tation, concentrated molasses or molado, and eistren bot­
toms, of sugar produced from the sugar-cane, and not
made from sorghum or imphee, per pound .
.
1 J cent
Monumental stones, with or without inscription, on the valuation . 5 per cent
Movements, clock, on the valuation .
.
.
. 5 per cent
Mortgage of lands, estate, or property, real or personal, heritable or
movable, whatsoever, where the same shall be made as
a security for the payment of any definite and certain
sum of money, lent at the time, or previously due, and
owing or forborne to be paid, being payable; also any
conveyance of any lands, estate, or property, whatsoever,
in trust, to be sold, or otherwise converted into money,
which shall be intended only as security, and shall be re­
deemable before the sale or other disposal thereof, either
by express stipulation or otherwise ; or any personal
bond given as security for the payment of any definite or
certain sum of money exceeding one hundred dollars, and
50 cents
not exceeding five hundred dollars, fifty cent stamp
exceeding five hundred dollars, and not exceeding one thou­
sand dollars, one dollar stamp
$1
and lor every additional five hundred dollars, or fractional
part thereof, in excess of one thousand dollars, fifty cent
50 cents
stamp
.
.
.
.
.
Provided, That upon each and every assignment or
transfer of a mortgage, lease, or policy of insurance, or
the renewal or continuance of any agreement, contract,
or charter, by letter or otherwise, a stamp duty shall be
required and paid, equal to that imposed on the original
instrument.
Museums, on gross receipts .
.
.
.
. 2 per cent
Mustard, ground, per pound
.
.
.
. 1
cent
seed oil, per gallon
.
.
.
. 5 cents
Nails. See “ Iron.”
Naptha, produced by the distillation of coal, asphaltum, shale, peat,
petroleum or rock oil, and all other bituminous subtances
used for like purposes, per gallon
.
.
. 2 0 cents
of a specific gravity exceeding 80 degrees, according to Baume’s
hydrometer, and of the kind usually known as gasoline
. 5 per cent
Newsoapers, on gross receipts for advertisements
.
. 3 per cent
on gross amount of sales
.
.
.
No tax




1864.]

The N ew Internal Revenue Law.

231

Nuts, iron, See “ Iron.”
Oils, all animal, pure or adulterated, if not otherwise provided for, per
gallon
.
.
.
.
.
.
5 cents
coal, refined and distilled from coal, asphaltum, or shale, exclu­
sively, per gallon .
.
.
.
. 15 cents
Oil, coal, illuminating, produced by the distillation of coal, asphaltum, shale, peat, petroleum or rock oil, and all other bitumin­
ous substances, per gallon
.
.
.
.
2 0 cents
lard, pure or adulterated, per gallon
5 cents
linseed, pure or adulterated, per gallon, .
.
.
5 cents
mustard seed, pure or adulterated, per gallon
5 cents
all vegetable, per gallon,
.
5 cents
essential, on the valuation
.
5 per cent
whale
.
.
.
.
.
.
No tax
fish
.
.
.
.
.
.
No tax
Operas, on gross receipts .
2 per cent
Organs, same as Pianofortes.
Oxide of zinc, per 100 pounds
.
35 cents
Pails, timber for, partially unwrought and unfinished
.
.
No tax
Paints, dry or ground in oil, or in piste with water, not otherwise
provided for, on the valuation
.
.
. 5 per cent
shall not be subject to any additional duty in consequence of
being mixed or ground in oil, when the duties upon all the
materials so mixed and ground shall have been previously ac­
tually paid.
Painters’ colors, same as “Paints.”
Pamphlets, on the gross sales
.
.
.
. 5 per cent
Paper of all descriptions, on the valuation
.
.
. 3 per cent
manufactures of, on the total value sold, or removed for sale . 5 per cent
Parasols of any material, on the total value sold, or removed for sale 5 per cent
Parrafine
.
.
.
.
.
.
No tax
Passage ticket, by any vessel from a port in the United States to
a foreign port, not exceeding thirty-five dollars, fifty cent
stamp required .
.
.
.
. 5 0 cents
exceeding thirty-five dollars and not exceeding fifty dollars,
one dollar stamp .
.
•
.
.
$1
and for every additional fifty dollars, or fractional part there­
of, in excess of fifty dollars, one dollar stamp
.
.
$1
Passport, each, issued from the office of the Secretary of State
.
§5
Pastboard, total valuation .
.
.
.
. 3 per cent
Patent leather. See “ Leather.”
Patent agents, license tax .
§10
Patent rights dealers, license tax
.
.
:
§10
Pawnbrokers, using capital not exceeding §50,000, license tax
.
§50
using capital exceeding $50,000, for every additional
§1,000 in excess of §50,000, license tax .
.
§2
Pedlars, when travelling with more than two horses or mules, license
tax .
.
.
.
.
.
§50
when travelling with two horses or mules, license tax
.
§25
when travelling with one horse or mule, license tax
.
§15
when travelling on foot, license tax .
.
.
§10
who sell newspapers, bibles, or religious tracts .
.
No tax
of jewelry, license tax
.
.
.
.
§50
who sell in original packages, license tax
.
.
§50
who sell shell, or other fish, from handcarts or wheelbarrows
exclusively
.
.
.
.
.
No tax




232

The N ew Internal Revenue Law.

[September,

1 cent
Pepper, ground, and all imitations of, per pound,
Perfumery—For and upon every packet, box, bottle, pot, phial, or
other enclosure, containing any essence, extract, toilet
water, cosmetic, hair oil, pomade, hair dressing, hairrestorative, hair-dye, tooth-wash, dentifrice, tooth­
paste, aromatic cachons, or any similar articles, by
whatsoever name the same heretofore have been, now
are, or may hereafter be called, known, or distinguish­
ed, used or applied, or to be used or applied as per­
fumes or applications to the hair, mouth, or skin,
made, prepared, and sold or removed for consumption
and sale in the United States, where such packet, box,
bottle, pot, phial, or other enclosure, with its contents,
shall not exceed, at the retail price or value, the sum
1 cent
of twenty five cents, one cent stamp
Where such packet, box, bottle, pot, phial, or other en­
closure, with its contents, shall exceed the retail price
or value of twenty five cents, and shall not exceed the
2 cents
retail price or value of fifty cents, two cent stamp
Where such packet, box, bottle, pot, phial, or other en­
closure, with its contents, shall exceed the retail price
or value of fifty cents, and shall not exceed the retail
3 cents
price or value of seventy-five cents, three cent stamp
Where such packet, box, bottle, pot, phial, or other en­
closure, with its contents, shall exceed the retail price
or value of seventy-five cents, and shall not exceed the
4 cents
retail price or value of one dollar, four cent stamp .
Where such packet, box, bottle, pot, phial, or other en­
closure, with its contents, shall exceed the retail price
or value of one dollar, for each and every fifty cents
or fractional part thereof over and above the one dol­
lar, as before mentioned, an additional two cent
2 cents
stamp
.
Photographs, ambroytypes, daguerreotypes, or any sun pictures, ex­
cept as hereinbefore provided, upon each and every
picture of which the retail price shall not exceed
2 cents
twenty-five cents, two cent stamp
Exceeding the retail price of twenty-five cents, and not
3 cents
exceeding the sum of fifty cents, three cent stamp .
Exceeding the retail price of fifty cents, and not ex­
5 cents
ceeding one dollar, five cent stamp
Exceeding the retail price of one dollar, for every ad­
ditional dollar or fractional part thereof, five cent
5 cents
stamp
.
Photographs, or any other sun picture, being copies of engravings or
works of art, or used for the illustration of books, and on photo­
5 per cent
graphs so small in size that a stamp cannot be affixed
$10
Photographers, when the receipts do not exceed $500, license tax .
When the receipts are over $500 and under $1000,
$15
license tax
.
.
.
.
$25
When the receipts are over $1,000, license tax
$10
Physicians, license tax
.
.
.
.
.
Pianofortes, organs, melodeans, or other parlor musical instruments,
kept for use, not including those placed in churches or
public edifices, valued at not less than $ 1 0 0 nor above
$2
$ 2 0 0 , each .
.
.
.
.
$4
valued at over $200 and not over $400, each
$S
valued at over $400, each




1864.]

The N ew Internal Revenue Law .

233

Pickles, lota! valuation
.
.
.
.
.
5 per cent
Pig iron, per ton
.
.
.
.
.
S2
Pins, solid head, or other, total valuation
5 per cent
1 cent
Pimento ground, and all imitations of, per pound
Plaster
.
.
.
.
.
.
No tax
Plate of gold, kept for use, per ounce troy
50 cents
Plate of silver, kept for use, per ounce troy
5 cents
to the extent of 40 ounces
No tax
Plate belonging to religious societies
No tax
Plate Iron. See “ Iron.”
Playing Cards—For and upon every pack of whatever number,
when the retail price per pack does not exceed
eighteen cents, two cent stamp
2 cents
Exceeding the retail price of eighteen cents, and not
exceeding twenty-five cents per pack, four cent
stamp
.
4 cents
Exceeding the retail price of twenty-five, and not ex­
ceeding fifty cents per pack, ten cent stamp
10 cents
Exceeding the retail price of fifty cants, and not ex­
ceeding one dollar per pack, fifteen cent stamp 15 cents
Exceeding the retail price of one dollar, for every
additional fifty cents, or fractional part thereof,
in excess of one dollar, five cent stamp
5 cents
Plug Tobacco. See “ Tobacco.”
Plumbers, license tax
.
.
.
.
.
$10
Porter. See “ Malt Liquors.”
Pottery ware, on the valuation
.
.
.
. 5 per cent
Power of Attorney for the sale or transfer of any stock, bonds, or
scrip, or for the collection of any dividends or
interest thereon, twenty-five cent stamp
25 cents
or proxy for voting at any election for officers of
any incorporated company or society, except
religious, charitable, or literary societies, or
public cemeteries, ten cent stamp
1 0 cents
to receive or collect rent, twenty-five cent stamp . 25 cents
to sell and convey real estate, or to rent or lease
the same, one dollar stamp
$1
for any other purpose, fifty cent stamp
50 cents
Precious stones, and all imitations, on the total valuation
10 per cent
When diamonds, emeralds, precious stones, or imi­
tations thereof, imported from foreign countries,
or upon which import duties have been paid,
shall be set or reset in gold or any other ma­
terial, the duty shall be assessed only on the
value of the settings.
Preparations of which coffee forms a pirt when ground, or which are
1 cent
prepared for sale as a substitute for coffee, per pound
5 per cent
Preserved fish, total valuation
.
.
.
.
fruit,
do.
.
.
.
. 5 per cent
5 per cent
meats,
do.
.
5 per cent
shell fish, do.
.
.
.
.
vegetables, do.
.
.
.
. 5 per cent
Printed books, magazines, pamphlets, reviews, and all other similar
printed publications, except newspapers, on the
5 par cent
gross sales
.
on all advertisements, on gross receipts
3 per cent
5 per cent
Printed cards and circulars, on the total valuation
No tax
Printers ink
.
*
.
.
.
.




234

The N ew Internal Revenue Law.

[September,

Produce Brokers, whose sales do not exceed $10,000, license tax .
$10
Probate of Will, or letters of administration : Where the estate and
effects for or in respect of which such probate
or letters of administration applied for shall be
sworn or declared not to exceed the value of
two thousand dollars, one dollar stamp required
$1
Exceeding two thousand dollars, for every additional
thousand dollars, or fractional part thereof, in
excess of two thousand dollars, fifty cent stamp
required
.
.
.
. 5 0 cents
Profits. See “ Income.”
Protest.—Upon the protest of every note, bill of exchange, accept­
ance, cheek, or draft, or any marine protest, whether protested
by a notary public or by any other officer who may be author­
ized by the law of any State or States to make such protest,
twenty-five cent stamp required .
.
.
. 2 5 cents
Quicksilver, produced from the ore, on the valuation

.

. 2 per cent

Railroads, on gross receipts
.
.
.
. 2-J per cent
on bonds or other evidences of indebtedness upon which
interest is stipulated to be paid, on the amount of in­
terest, and on coupons, dividends, or profits carried to
the account of any fund
.
.
. 5 per cent
Railroad chairs and railroad iron. See “ Iron.”
Real estate, succession to, where it shall become subject to a trust
for any charitable or public purposes, under any part
or future disposition, which, if made in favor of an in­
dividual, would confer on him a succession, there shall
be payable in respect of such real estate, upon its be­
coming subject to such trust, upon the amount or prin­
cipal value of such real estate .
.
. 6 per cent
Real Estate.-—There shall be levied and paid, according to the value
thereof, the following duties—
When the succession shall be the lineal issue or lineal
ancestor of the predecessor, a duty at the rate of one
dollar per centum upon such value
.
. 1 per cent
Where the successor shall be a brother or sister, or a
descendant of a brother or sister of the predecessor,
duty at the rate of two dollars per centum on the
value
.
.
.
.
. 2 per cent.
Where the successor shall be a brother or sister of the
father or mother, or a descendant of a brother or
sister of the father or mother of the predecessor, duty
at the rate of four dollars per centum on the value . 4 per cent
Where the successor shall be a brother or sister of the
grandfather or grandmother, or a descendant of the
brother or sister of the grandfather or grandmother
of the predecessor, duty at the rate of five dollars per
centum on the value .
.
.
. 5 per cent
Where the successor shall be in any other degree of
collateral consanguinity to the predecessor, or a
stranger in blood, duty at the rate of six dollars per
centum on the value .
.
.
. 6 per cent
Real Estate Agents, license tax
.
.
.
.
$10
Receipts for the payment of any sum of money, or for the payment
of any debt due, exceeding twenty dollars, not being for
the satisfaction of any mortgage or judgment or decree




1864.]

The N ew Internal Revenue Law.

235

of any court, and a receipt for the delivery of any pro­
perty, two cent stamp required
.
.
. 2
cents
Warehouse receipt for property, goods, wares, or merchan­
dise, not otherwise provided for, in any public or private
warehouse,- when the property or goods so deposited or
stored shall not exceed in value five hundred dollars, ten
cent stamp
.
.
.
•
. 1 0 cents
Exceeding in value five hundred dollars and not exceeding
one thousand dollars, twenty cent stamp
.
. 20 cents
Exceeding in value one thousand dollars, for every addi­
tional one thousand dollars, ten cent stamp .
. 10 cents
Warehouse receipt for any goods, merchandise, or property
of any kind, not otherwise provided for, held on storage
in any public or private warehouse or yard, twenty-five
cent stamp
.
.
.
.
. 2 5 cents
Receipts of express companies;
.
.
.
. 3 per cent
of ferry companies,
.
.
.
. 3 per cent
Repairs of engines, cars, carriages, or other articles, when such re­
pairs increase the value of the article so repaired ten per
centum or over, on such increased value
.
. 3 per cent
on such repairs made upon ships, steamboats, or other ves­
sels, on the increased value
.
.
. 2 per cent
Rectifiers, for license to rectify any quantity of spirituous liquors not
exceeding 500 barrels, packages, or casks, containing
not more than 40 gallons each
.
.
.
$25
for each additional 500 barrels, &c., or any fraction thereof
$25
Retail Dealers, liceuse for .
.
.
.
.
$10
Retail Dealers in Liquors, license for.
.
.
.
$25
Retail Dealers whose gross annual sales do not exceed $1000
.
Exempt
Rivets. See ‘-Iron.”
Roads, toll, on gross receipts
.
.
.
. 3 per cent
Roman cement, total valuation
.
.
.
. 3 per cent
Sails. See “Awnings.”
Salaries, annual income from, when exceeding $600, on the excess
over $600
.
.
.
.
. 5 per cent
of all persons in employ of the United States, when exceed­
ing $600, ou the excess above $600 .
.
. 5 per cent
Sales, auetiou, of goods, &e., on gross amount of sales
.
i of 1 per cent
of stocks, &c.,
.
.
.
i of 1 per cent
by public officers
Exempt
Saleratus, per pound
5 mills
Salt, per 100 pounds
6 cents
Sandstone. See “ Stone.”
5 per cent
Sarsaparilla waters, soda waters, &c., on the valuation
Savings Banks, having no capital stock, and whose business is con­
fined to receiving deposits and loaning the sa ne, for the benefit
of their depositors, and which do no other business of banking,
shall not be liable to pay for a license as a banker, and are except­
ed from the tax on deposits and capital stock indicated under
head of “ Banks,”
.
.
.
.
.
No tax
Savings institutions on all dividends .
5 per cent
Screws, called wood screws, on the total valuation
.
. 10 per cent
Segars. See “ Cigars.”
Shades, same as “Awnings.”
Sheathing metal, yellow, on the valuation
.
.
. 3 per cent
Sheep, slaughtered, per head
.
.
.
. 5
cents
Sheep, slaughtered, tor the pelts, each
.
.
. 2
cents
Sheep, slaughtered, by a person for his own use, when the number of




230

The N ew Internal Revenue Law .

[September,

sheep, calves, or swine does not exceed twenty
Ho tax
Sheet Iron. See “ Iron.”
5 per cent
Shell fish, in cans or air-tight packages, on the valuation
Sheep skins, tanned, curried, or finished, do
do
5 per cent
Ships, except when plying between ports of the United States, on
gross receipts
.
.
.
.
.
23 per cent
2 per cent
Ship blocks, on the valuation
.
.
.
.
Shingles .
.
.
.
.
.
.
No tax
5 per cent
Shoes, ready made, on the valuation .
.
.
.
Shoemakers. See “ Bootmakers.”
3 per cent
Shot, on the valuation
.
.
.
.
.
Shooks
.
.
.
.
.
.
No tax
No tax
Shovel handles, timber for, partially wrought and unfinished
Silk parasols, on the valuation
.
.
.
.
5 per cent
umbrellas
do
do
5 per cent
manufactures of, not otherwise provided for, ou the valuation . 5 per cent
Silver, manufactures of, when not otherwise provided for, on the
valuation .
.
.
.
.
.
5 per cent
Skins, calf, tanned, or dressed in the rough, on the valuation
5 per cent
5 per cent
patent
do • do
5 per cent
goat, tanned or dressed in the rough, do
do
5 per cent
kid,
do
do
do
do
5 per cent
goat, curried or finished,
do
do
5 per cent
kid,
do
do
do
do
5 per cent
sheep, tanned or dressed in the rough, do
do
5 per cent
dog,
do
do
do
do
sheep, tanned, curried or finished,
do
do
5 per cent
5 per cent
deer, dressed or smoked,
do
do
5 per cent
hog, tanned or dressed,
do
do
horse, do
do
do
do
5 per cent
all goat, calf, kid, sheep, horse, dog, and hog skins, previously
assessed in the rough, and upon which duties have been
actually paid, shall be assessed on the increased value
only, when curried or finished.
upon which a duty has previously been assessed and paid, when
manufactured into gloves, mittens, or moccasins, the duty
shall only be assessed upon the increased value thereof,
when so manufactured.
No tax
Skirts, hoop, the material for the manufacture of, exclusively
Slaekwater Companies, same as “ Canal Companies.”
Slate, when dressed, hewn, or finished,
3 per cent
Slaughtered cattle, &c. See “ Cattle,” “ Hogs,” “ Sheep.”
Smoking tobacco. See “ Tobacco.”
Snaths, timber for, partially wrought, and unfininshed
No tax
Snuff, manufactured of tobacco, or any substitute for tobacco, ground
dry or damp, pickled, scented or otherwise, of all descrip
35 cents
tions, per pound .
.
.
.
Snuff-flour, same as Snuff.
2 mills
Soap,castile, valued at not above 5 cents per pound, per pound
1 cent
valued at above 5 cents per pound, per pound
5 cents
cream, per pound
.
.
.
.
2 mills
erasive, valued at not above 5 cents per pound, per pound
1 cent
valued at above 5 cents per pound, per pound
5 cents
fancy, per pound
.
.
.
.
5 cents
honey, per pound
.
.
.
.
2 mills
palm oil, valued at not above 5 cents per pound, per pound
1 cent
valued at above 5 cents per pound, per pound
5 cents
^scented, per pound .




1 8 6 4 .J

The N ew Internal Revenue Lazo.

2S1

5 cents
Soap, shaving, per pound .
.
.
.
.
5 cents
toilet, ol all descriptions, per pound
transparent, per pound
.
.
.
.
5 cents
of all other descriptions, white or colored, except soft soap,
and soap otherwise provided for, valued at not above 5 cents
2 mills
per pound, per pound
.
1 cent
valued at above 5 cents per pound, per pound
5 per cent
soft, ou the valuation
.
.
.
.
5 per cent
Soda waters, &c., on the valuation .
.
.
.
Soda, bi-carbonate of, per pound
.
.
.
.
5 mills
Sole leather. See “ Leather.”
'S pars and masts, on the valuation, whether made to order or for
2 per cent
sale
.
.
.
.
.
.
3 per cent
Spelter and brass, on the valuation .
.
.
.
Spikes. See “ Iron.”
Spirits, distilled and sold, or distilled and removed for consumption
or sale, of first proof, on and after July 1, 1864, and prior
to February 1, I 8 6 0 , per gallon
£81 50
$2 00
ou and after February 1, 1865, per gallon
20 cents
Spirits of turpentine, per gallon
No tax
Spokes, timber for, partially wrought, and unfinished
2 |p e r cent
Stage coaches, on gross receipts
Stallions, owners oh license tax
810
Stamp duties. See Agreement—Bank Check—Bill of Exchange
—Bill of Lading—Bill of Sale—Bond—Certificates—Charter
Party—Contract—Conveyance—Entry—Gaugers—Insurance
—Lease—Manifest—Measurer— Mortgage—Passage-Ticket
—Power of Attorney—Probate of VVill—Protest—Beceipt
—• Weigher-—Legal Document— Medicines— Perfumery—
Frictiou Matches—Photographs—Playing Cards.
.
.
3 mills
Starch, made of corn, per pound
.
2 mills
made of potatoes, per pound .
.
maue of rice, per pound
.
.
1 cent
.
3 mills
made of wheat, per pound
.
.
1 cent
made of any other material, per pound .
•
.
No t ax
Stoves
.
.
.
.
Steam engines, including locomotives and marine engines, on the val­
3 per cent
uation .
.
.
.
.
.
21 per cent
Steamboats, on gross receipts
.
.
.
.
825 00
Steamers and vessels boarding passengers, license tax
Steel in ingots, bars, sheets, or wire, not less than J of an inch in
85
thickness, valued at 7 cents per pound, or less, per ton
in ingots, valued'above 7 cents and not above 11 cents per
810
pound, per ton
.
.
.
.
.
812 50
do., valued above 11 cents per pound, per ton
manuuiactures of, when not otherwise provided for, on the val­
5 per cent
uation .
.
.
.
.
.
rolled, and sheet, rod, or wire made of steel, upon which a
uuty has been assessed and paid, shall be assessed and pay
5 per cent
upon the increased value thereof
5 per cent
Stereotypers, productions of, on the valuation .
3 per cent
Stone water pipes, on the valuation .
.
.
.
Stone, building of any description, when dressed, hewn, or finished . 3 per cent
No tax
in block, rough and un wrought
.
.
t
.
83
Stoves, per ton of 2,060 pounds
.
.
.
.
Succession to real estate. See -l Beal Estate.”
Sugar refiners, on the gross amount of the sales of all the products
2i per cent
of their manufactories




S38

The New Internal Revenue Law.

[September,

Sugar, brown, or Muscavado, not above No. 12, Dutch Standard, in
color, produced directly from the sugar cane, and not from
sorghum or imphee, other than that produced by the refiner,
2 cents
per pound
.
.
.
.
.
all clarified or refined, above No. 12, and not above No. 18,
Dutch Standard, produced directly from the sugar cane, and
2 J cents
not from sorghum or imphee, per pound .
3i cents
above No. 18, per pound
.
Sugar. See “ Molasses.”
Sugar candy, made wholly or in part of sugar, valued at 20 cents per
2 cents
pound or less, per pound
valued at exceeding 20 cents, and not exceeding 40 cents
4 cents
per pound, per pound .
.
.
.
valued at exceeding 40 cents per pound, or when sold other­
10 percent
wise than by the pouud
12 cents
Sulphate of Barytes, per 100 pounds .
$10
Surgeons, license tax
.
.
.
.
.
1 0 cents
Swine, slaughtered, each .
.
.
.
.
Tailors, same as “ Milliners.”
Tarred paper, for roofing, &c.
.
.
.
»
Tar coal, produced in the manufactures of gas .
Telegraphic companies, on gross receipts
Tents, same as “ Awnings.”
Theatres, on gross receipts .
.
.
.
.
Theatres, license tax
Ticket. “ See passage ticket.”
Thread
.
.
.
.
.
.
Timber
.
.
.
.
.
.
Time-pieces, same as “ Clocks.”
Tin, manufactures of, if not otherwise provided for
Tobacco, cavendish, per pound
.
.
.
.
smoking, manufactured with all the stems in, the leaf not
having been butted or stripped from the stem, and on re­
fuse tobacco, known as fine cut shorts, per pound
smoking, made exclusively of stems, and not mixed with
leaf, or leaf and stems, per pound .
fine cut chewing, vlielher manufactured with the stem in or
not, and however sold, whether loose, in bulk or in pack­
age, papers, wrappers, or boxes, per pound .
manuluctured of all kinds, not otherwise provided for, from
which the stem has been taken in whole or in part, or
which is sweetened, per pound
plug, same as “ Cavendish tobacco.”
twist, same as “ Cavendish.”
Tobacconists, license tax .
.
.
.
.
when gross annual sales do not exceed $ 1,000
Trust companies, on dividends
.
.
.
.
Tubs, timber lor, partially wrought, and unfinished
Turnpike companies, on interest, coupons, dividends, or profits car­
ried to the account of any lund
Turpentine, spirits of, per gallon
.
.
.
.

3 per cent
No tax
5 per cent
2

per cent
$100

5 per cent
No tax
5 per cent
35 cents
25 cents
15 cents
35 cents
35 cents
$10

No tax
5 per cent
No tax
5 per cent
20 cents

Umbrella stretchers, timber for, partially wrought, and unfinished .
No tax
Umbrellas ol any material, on the valuation .
.
. 5 per cent
Varnish, made wholly or in part of gum copal, or of other gums or
substances, on the valuation
,
5 per cent
Vegetables, preserved, on the valuation
5 per cent




1864 .]

The N ew Internal Revenue'Law.

Vegetable oils, per gallon .
Vessel blocks, on the valuation

239
2

5 cents
per cent

Warp for weaving, on the valuation .
.
;
. 5 per cent
Warehouse receipts. See “ Receipts.”
Watches, gold, valued at $ 1 0 0 or less
.
.
.
$1
valued at over $ 1 0 0 .
.
.
.
$2
Water cement, on the valuation
.
.
.
. 3 per cent
Water pipes, earthen or stone, on the valuation
.
. 3 per cent
Weighers’ returns, if for a weight not exceeding five thousand pounds,
ten cent stamp
.
.
.
. 1 0 cents
exceeding five thousand pounds, twenty-five cent stamp . 25 cents
Whale oil
.
.
.
.
.
.
No tax
Whiskey. See “ Spirits.”
White lead, per 100 pounds
.
.
.
. 3 5 cents
Wholesale dealers, whose sales do not exceed $50,000, license tax .
$50
exceeding $50,000, for every additional $1,000
in excess of $50,000 .
.
.
$1
in liquors, whose sales do not exceed $50,000, li­
cense tax
.
.
.
$50
exceeding $50,000, for every additional $1,000 in
excess of $50,000
.
.
.
$1
Will. See “ Probate of Will.”
Willow, manufacture of, on the total valuation
.
. 5 per cent
Wine made of grapes, per gallon .
.
.
. 5
cents
Wines, or liquors denominated as wines,, not made from currants,
rhubarb, or berries, produced by being rectified or mixed with
other spirits, or with which any matter whatever may be in­
fused, to be sold as wine, or by any other name, and not other­
wise provided for, per gallon .
.
.
. 5 0 cents
Wood, manufactures of, not otherwise provided for, on the valuation 5 per cent
Wood screws, on the valuation
.
.
.
.10 per cent
Wool fabrics, woven, knit, or felted, before being dyed, printed,
bleached, or prepared in any other manner, on the valuation . 5 per cent
manufactures of, not otherwise provided for, on the valuation . 5 per cent
Worsteds, manufactures of, not otherwise provided for, on the valu­
ation .
.
.
.
.
.
5 per cent
Yachts, pleasure, or racing boats, propelled by sail or steam, measur­
ing, by Custom House measurement, ten tons, or less,
each .
.
.
.
.
.
.
$5
exceeding ten and not exceeding twenty tons, each
.
$io
exceeding twenty and not exceeding lorty tons, each
.
$25
exceeding forty and not exceeding eighty tons each
.
$50
exceeding eighty and not exceeuing one hundred and ten
tons, each
.
.
.
.
.
$75
exceeding one hundred and ten tons, each
.
.
$100
Yarn, on the valuation
.
.
.
.
.
5 per cent
Yellow sheathing metal, on the valuation
.
.
. 3 per cent
when the duty has not been paid on ingots, pigs, or bars, on
the valuation
.
.
.
.
. 5 per cent
Zinc, manufactures of, not otherwise provided for, on the valuation 5 per cent
^oxide of, per 100 pound
.
.
.
. 3 5 cents




240

Commercial Chronicle and Review.

[September,

COMMERCIAL CHRONICLE AND REVIEW.
T H E N A T JO N A L D E B T — A M O U N T O F C U R R E N C Y A N D IT S IN C R E A S E — CO M PO U N D 1 N T E R IS T
C O N V E R S IO N O F T H E

7-30’s —S A L E S

OF

5-2U’s

NO TES—

A B R O A D — R IS E IN P R IC E S A N D T H E E F F E C T — E F F E C T

O F T H E R l t K ON T H E M A R K E T A N D ON C O N SU M PT IO N — T H E S P E C IE M O V E M E N T — G O L D IN T E R E S T
D U E N O V E M B E R 1 , A N D B E F O R E T H A T T IM E , T O B E P A ID A T O N C E , A N D A M O U N T O F

SAM E— E E '

C H A N G E , P R IC K O F S A M E — U . 6 . STO CK S.

T here has been a monotonous condition of the market during the month.
W ith an increasing ease in the money market, no marked change has taken place
in the state ol affairs. The loan put out by the new Secretary of the Treasury
in 7-30 three year bonds, paper interest, has sold slowly, not in suiiicient amount
to meet any considerable proportion of the Federal expenses, and arrears have
largely accumulated.
The aggregate debt, according to the weekly reports, compares as follows :
,--------D e b t F a y in g I n te re s t-------- . D e b t: in te r­
In Coin.
In C u rren cy .
est ceased.

July 6, $866,967,188
“ 12, 864,169,620
“ 19, 884,698,842
“ 26, 886,867,842
Aug. 2, 884,127,792
“ 9, 884,084,192
“ 16, 885,868,182

$388,57 9,547
400,330,010’
408,181,049
404,663,580
411,413,182
424,841,602
435,010,141

$87 6,170
876,170
87 0,170
876,170
867,170
867,170
867,170

D e b t b ea rin g no
in terest.

$632,950,185
630,223,609
609,053,306
610,7 32,032
631,684,020
522,806,911
629,343,222

T o tal
am ount.

$1,792,867,040
1,795,033,609
1,796,203,367
1,805,623,564
1,827,492,170
1,832,649,886
1,849,714,566

The increase in the aggregate is large, but, in addition to this increase, there
are arrears running for army pay, which are adjusted every sixty days, and will
add on the 1st of September about $50,000,000 to the amount of debt.
Of the position of the debt, which compares the circulation, the increase has been
as follows :
United States Notes..............
hive per cent 1 year n o te s...
Five per cent 2 year Lotes.. .
Five per ceLt 2 y ear notes, with
coupons..................................
Fractional currency..................
Compound interest notes.........
Total..................................
United States Notes................
hive per cent 1 year notes.. ,.
Five per cent 2 y ear notes.. . .
Five per cent 2 y ear notes, with
coupons ................................
Fractional currency.................
Compound interest notes........
Total..................................

J u ly 12.
$ 4 8 1 ,6 5 9 ,4 7 0
4 4 ,6 2 0 ,6 0 0
1 6 ,4 8 6 ,6 0 0

J u ly 19.
$ 4 2 9 ,4 6 7 ,8 0 3
4 4 ,6 2 0 ,0 0 0
1 6 ,4 8 0 ,0 0 0

[ J u ly 26.
$ 4 8 1 ,1 6 6 ,8 9 5
4 4 ,5 2 0 ,0 0 0
1 6 ,4 8 0 ,0 0 0

8 6 ,6 0 8 ,3 5 0
22,7 lu ,b 0 8
1 6 ,6 6 0 ,6 6 0

8 4 ,5 8 4 ,3 5 0
2 3 ,0 0 9 ,5 8 8
1 8 ,8 2 0 ,0 0 0

8 2 ,3 6 0 ,1 0 8
2 8 ,4 2 8 ,0 7 0
2 4 ,4 2 0 ,0 0 0

$ 6 1 5 ,4 8 5 ,5 6 9

$ 6 1 6 ,4 6 8 ,2 1 2

$ 6 2 7 ,8 6 9 ,6 6 8

A ug. 2.
$ 4 3 8 ,1 0 6 ,6 5 3
4 4 ,5 2 6 ,6 6 0
1 6 ,4 8 0 ,6 6 0

A ug. 9.
$ 4 3 3 ,1 6 U ,6 5 3
4 4 ,5 2 6 ,6 6 0
1 6 ,4 8 0 ,0 0 0

A ug. 16.
$ 4 3 8 ,1 0 0 ,6 6 9
4 4 ,5 2 0 ,0 6 0
1 6 ,4 8 0 ,0 0 0

8 0 ,9 3 3 ,6 0 2
2 8 ,4 1 4 ,4 2 0
3 8 ,8 6 8 ,7 6 0

8 0 ,9 3 3 ,6 0 2
2 8 ,5 4 6 ,5 9 4
8 8 ,4 0 0 ,0 0 0

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

$ 6 8 7 ,0 4 0 ,7 6 5

6 5 8 ,8 6 5 ,9 1 3

$ 6 8 1 ,8 9 8 ,8 6 5

These figures give the character of the increase of the currency.

I t is made

up of $4,000,000 greenbacks, paid out in discharge of the temporary loan, with­
drawn from the Treasury by the Banks in consequence of the high rate of inter-




1864.]

C o m m e rc ia l C h ro n ic le a n d R e v ie w .

241

est, and compound interest notes, which have been emitted to the extent of
<*>20.000,000. These notes are payable in three years, and have the interest six
per cent, compounded half yearly, to be paid at the end of the time. The idea
of the emission is, that after a certain period, when the interest shall have ac­
cumulated, the notes will be kept for the interest. It does not appear, however,
yet, that that expectation is likely to be realized. The one year certificates, of
which about $186,000,000 are outstanding, bear six per cent interest, and they
sell now at 93a95 cents per dollar rates, which give from 11 to 13 per cent per
annum, or more than eighteen months accumulated interest of the compound
notes. The amount of each kind of debt outstanding was as follows at the pe­
riods stated :
16, 9, AND JULV 12, 1864.
July 12.
Aug. 9.
Aug. 10.
$18,323,592
$18,St'S,592 $18,323,592
27,022,000
27,022,000
27,022,000
2,103,000
2,052,000
2,052,000
167,684,000
172,353,500
131,334,477
99,807,000
82,484,900
77,965,400
510,756,900
510,756,900 610,766,900
73,946,850
75,868,800
75,290,800
1,016,000
1,016,000
1,016,000

PUBLIC DEBT OF THE UNITED STATES, AUGUST

Six per cents, 1867-8.......................
Five per cents, 1811-4......................
Five per cents, 1865..........................
Six per cents, 1881............................
7-30’s, convertible into 1881..............
5-20’s 6 per cents..............................
10-40’s, 6 per cents.............................
Oregon, 6 per cents............................
Total gold-bearing ...................
Deposits at 6 per cent.......................
Treasury certificates, 6 per cents—
One year 5 per cents........................
Two year 6 per cents........................
Two year coupons 5 per cents . . . .
Three year 6 per cents, compound..
New 7-30 per cents............................

$864,109,819
$74,593,659
164,523,060
44,520,000
16,480,000
85,543,350
15,000,000

Total currency interest..............
Greenbacks.........................................
Fractions.............................................
Eequisitions.......................................

$400,330,010

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

$884,634,192 $885,358,192
$54,062,509 $52.821,6S9
180,591,000
186,162,000
44,520,000
44,520,000
16,480,000
16,480,000
80,933,602
79,577,502
38,400,000
41,360,000
9,854,450
14,291,950

$424,841,562 $435,010,141
$431,059,470 $433,160,569 $433,160,569
22,7) 0,6u8
23,546,594
24,017,842
88,567,000
79,723,000
83,492,000
367,170
367,170

$542,337,078 $536,796,333 $541,017,581
$1,806,776,907 1,846,171,087 1,851,387,914

This is the actual amount of paper outstanding. The result differs from the
aggregates alone, in that some paper in the Treasury is deducted.
The conversions of the coin 7-30 into 6 of 1881 took place freely as the day of
the maturity of the former, Amgust 19, approached. The new 7-30, payable in
paper, were sold to some extent, the attraction being their convertibility at
maturity, three years hence, into 6 per cent gold stock. The amount of sales,
however, did not suffice to pay the 6 per cent deposits withdrawn from the
Government, and the Treasury did not benefit by the operation. There were
several new propositions on the part-of the Treasury for new loans. The de­
mand for the 5-20’s in January was strong, at about 40 cents per dollar, and the
amounts sent out were considerable. It is estimated that the aggregate amount
held in Germany is about $150,000,000, which has realized a very small amount
compared with that which is to be returned in principal and interest.
VOL. LI.----NO. IV.
15




/
242

C o m m e r c ia l C h ro n ic le a n d R e v ie w .

[ S e p te m b e r ,

The continued increase in the currency has been accompanied by a further
rise in prices. In a former number we gave a table of some sixty articles from
the prices current, showing the aggregate average advance of those articles as
compared with gold. The following are the aggregates, brought down to the
close of July :
July, 1863........
October, 1863...
November, 1863
December, 1863,
March, 1 8 6 4 ....
April, 1864........
July, 1864.........

Price
of
Gold.

Price
of 60
articPs

122
148
150
152
162
181
256

1,323
1,455
1,665
1,693
1,187
1,905
2,540

Generally speaking, the main cause of the change in prices is doubtless the
fact that, to use an apparent solecism, prices do not rise at all. It is the cur­
rency that depreciates. This becomes evident when we reflect that, amid all the
rise in prices, the articles do not cease to be sent where they are still higher in
price. Thus, wheat has been $2 95 per bushel, but has nevertheless been ex­
ported this month to Liverpool, where its price is only $1 25 per bushel. The
whole export list embraces a great variety of articles apparently much higher in
price here than at the places to which they are sent to realize a profit, and also
many articles that were imported here to realize profits, but which are now re­
turned whence they came to avoid loss. This is the rule with the markets.
There are, nevertheless, exceptions where the price has risen all over the world
because the supply has been cut off. This is the case with the raw material for
human clothing. There has been withheld from the markets of the world, in the
last three years, an accustomed supply of 12,000,000 bales of cotton—equal to
6,720,000,000 pounds, or 26,000,000,000 yards of cloth, or forty yards each for
every soul of the human race. It could not be otherwise under such circum­
stances, that not only cotton, but all the four great raw materials, wool, silk,
flax and cotton, should really rise immensely in value as compared with other
commodities. The rise stimulated production in remote regions, which have
drawn large amounts of coin in payment.
Those materials form the most important diminution in supply which the war
has occasioned. It was the experience of former wars that the supply of al
products was much diminished, not only by devastation, but principally by the
drawing off of men from productive labor to the battle-field. The earth remain­
ing untilled did not bring forth its fruits, and famine resulted. The employment
of females in field labor was necessitated by the operation of the conscriptions.
I t was but a few years since, by no means infrequent, that a female might, in
Europe, be seen turning up the earth by means of a coaise linen band passed
around her forehead and made fast to the plough behind her, which she thus
dragged, The absence of males was thus painfully supplied by the other sex.
A t the present time that cause of dearness operates to a far less extent, for the
reason that the progress of mechanical invention has been such as almost to
supplant manual labor in the most arduous operations of agriculture. A single
female may now, without much fatigue, cut eight or ten acres of grass in a day,




1864.]

C o m m e rc ia l C h ro n ic le a n d R e v i e w .

243

&labor that would, a few years since, have required the energies of six able men.
To such an extent has machine labor been supplied in every department of farm
labor, that the drawing off the male population for the defense of the nation in­
terferes far less with the production of crops than might have been supposed.
Indeed, it would not have been possible to have kept one million men in the
field the last two or three years, but for the great substitution of machine work.
It has been alleged that the possession of blacks has been a great source of
strength to the South, by enabling production to go on while the white race
were drawn into the army. That is no doubt true, but the machine work of tha
North has been more efficient, under similar circumstances, in keeping up tha
supplies of food. The proof is seen in the fact that in this third year of the war,
after two and a quarter millions of men have been called to the national defence,
we have been able, not only to feed the army and the people, but to export the
following amounts of grain :
F lo u r,
b arrels.

W h e a t.

1864....................................... 1,057,141
1863....................................... 1,347,727
1862....................................... 2,673,002

12,956,543
20,375,821
25,631,586

Total, three years......... 5,081,876

58,969,950

,----------- T o tal in b u sh .----------- ,
W h e at.
Com .

18,102,278
20,149,956
39,012,596
84,359,330

252,281
8,261,815
12,181,201
20,695,297

This quantity of wheat, exported in three years of war, exceeds the entire
wheat crop of the Union in 1840.
It will be borne in mind that this grain has not been drawn from us by
exorbitant prices paid abroad, to eke out short crops, but has been sold in com­
petition with their own good crops, at unusually low prices. It is evident that
this could not have been done but for the prevalence and efficiency of machine
labor, which has also penetrated into most departments of manufacture, increas­
ing the production of all descriptions of wealth, in a larger proportion per head
of the population. This process, aided by considerable immigration and the new
settled lands, have been the main sources of that great national strength which
has so astonished Europe.
This operation of machine labor in all departments, has greatly increased tha
annual production of wealth, and by so doing has enabled the Government to sus­
tain the incredible war expenses. Nevertheless, even with this great aid, the
amount of annual expenditure exceeds the means. The item of $150,000,000
5-20 stock due abroad, and for which less than $50,000,000 was received, will
require the annual export of $9,000,000 in gold for twenty years for interest,
making $180,000,000. The principal must then be returned, making $280,000,000
for $50,000,000 received. This outlay is the worse in that the money received
has not been applied to any reproductive employment. When a railroad like
the Illinois Central borrowed $20,000,000 abroad, the money is applied to open­
ing up new land, which settled by immigrants, produces $20,000,000 per an­
num of produce for export, hence, the debt was early paid. The Government
loans are burnt up, and their payment will be an additional weight upon old resources.
The rise in prices of commodities has, impelled by high taxes and greater
cost, out-run the power of consumption, and the fall trade has been almost at a




244

C o m m e r c ia l C h ro n ic le a n d R e v ie w .

[September,

stand. Those articles, such as coffee, sugar, low grade goods, which, from the
staple productions of the great mass of the people in moderate circumstances,
has reached such high rates, that the decline in consumption is very marked,
amounting almost to a stagnation of the fall trade. As a consequence, remit­
tances were moderate, and gold and exchange remained dull. The specie move­
ment was as follows:
SPE C IE AND PB ICE OF GOLD.

«-------- 181 S3.—------, ,-------------- ----------1S<34.---------------■-------- s
E x p o rte d .
Received.
R ec eiv ed . E x p o rte d . (Bold in b an k . Prem .ongold.
681,448
Jan. 2 . . . . . . . . . . .
254,239
690,262 25,161,935 51£ a 52
726,746
9 . . . . 1,277,788
1,216,204 26,122,002 o lf a 52
16 . . . ..................
1,380,24 7
279,801 1,985,057 24,884,264 521 a 66-J
365,608 1,000,000 24,631,204 56 a 58
23 . . . . 678,841
780,817
..................
324,864
80 . . .
1,331,027
668,747 24,203,682 564 a . . .
Feb. 6 . . . . 301,860 1,277,000
662,616 24,070,191 §9* a . . .
13 . . . . 359,987 1,152,846
363,198 1,219,808 23,521,453 95 a ...
20 . . . ..................
520,017
325,632 22,523,918 59 a . . .
27 . . . . 285,394 1,377,016
407,057
631,700 22,301,687 165 a 61
March 5 . . . . 1,243,551
733,643
512.368
629,803 21,220,653 614 a 62
12 . . . ..................
3,540,550
465,920 20,750,495 62 a 69
19 . . . . 249,514 1,201,907
281,804
83,881 21,059,512 62 a 624
.
169,105
1,050,156
26 . . .
375,101
273,900 20,425,504 691 a 704
.
250,778
473,885
273,429
Apr. 2 . . .
168,912 19,527,665 63f a 684
9 . . . ..................
607,069
302,344
345,471 20,924,287 67 a 71
16 . . . . 217,602
158,437
269,522 1,002,884 21,687,670 71 a 89
629,865
23 . . . . 256,604
3,226,000 24,868,203 724 a 79
30 . . . .
294,998
282,876 1,271,836 24,087,343 77 a 85
451,827
.
205,057
282,276
1,174,241 28,082,028 71 a 81
May 7 . . .
661,996
14 . . . .
2,452,668 22,685,155 6 1 | a 76|
12 . . . . 258,570
488,745
883,428 1,884,195 22,091,691 73 a 86
28 . . . ..................
279,994
580,820 21,973,180 874 a 924
411,483
271,801 1,425,688 22,461,604 87 a 904
June 4 . . . ,. 318,066
...............
..
235,364
1,543,600
24,041,704 92 a 994
11 . . .
......
522,147
291,208 1,886,663 22,916,291 94 a 984
18 . . . ,.
134,482
281,011 1,296,356 22,000,898 99 a 130
26 . . . .. 187,082
......
347,807
July 2 . . . ,.
560,677 21,206,685 115 a 180
401,986
9 . ..,. 254,947
301,207
486,389 20,084,917 122 a 1764
......
2,190,781
16 . . . , .
301,244 21,234,354 144 a 185
......
1,725,748
249,095
656,464 21,033,912 15(>^a 1685
23 . . . .
270,1S2
480,374
284,301
404,312 21,051,896 144 al59
80 ..
530,044
......
90,111 21,159,618 165 al6 1 |
Aug. 6 . . . , .
313,612 1,210,220
13 . . .
341,883 21,080,309 152 al5 9 |
238,398
571,281
48,009 20,794,268 165 al68
20 . . . ................

Total... . .$7,837,497 $25,946,396 $8,346,613 31,179,653
In July the Government sent $500,000 in gold from San Francisco to London,
and made transfers to New York to meet interest. The new Secretary, August
'20th, gave notice that the interest on the United States stock would be paid in
advance. The Amounts were as follows :
August 19, on 7-30.........................................................................................
September 1, on 10-40................................................................................
October l,o n 7-30......................................................................................
November 1, on 5-20......................................................................................
Total........ ............................................................................................

$1,000,000
1,878,000
2,000,000
15,300,000
$20,175,000

This was a repetition of M r . C h a s e ’s vagaries, in the hope ofbrioging down
the price of gold, when the flood of paper issues continue.




1864.]

C o m m e r c ia l C h r o n ic le a n d R e v ie w .

245

The dullness of business prevented any considerable demand for gold, and the
export of 5-20 bonds to Germany supplied some bills, but, as we have shown, at
a fearful cost. 35100,000 sold having giving but £8,000 of exchange. The mar­
ket was, however, pretty clear of bills, and so uncertain had the business become,
that to buy a line of exchange a very high price was required. But, on the
other hand, if a line was offered upon the market low rates were submitted to
make sales. In many cases rates were nominal.
BATES OF EXCHANGE.

London.
Paris.
Amsterdam. Frankfort. Hamburg.
Berlin.
Jan. 2, 166 a 166£ 3.381 a 3.344 624 a 63 621 a 634 554 a 56 1 1 0 4 a 111
9,. 166$ a 167| 3.384 a 3.40 62f• a 63 621 a 634 551 a 564 1 1 0 4 a 111
“ 16,. 1694 a 170| 3 30 ia 3 32* 64 a 644 644 a 641 564 a 574 1121 a 113#
“ 23,. 170 a 171 3.31 a 3.33 61* a 644 64^ a 65 561 a 57 112J a 113J
(( 80, 171 a 172 3.324 a 3.284 614 a 641 644 a 65 574 a 574 1134 a 114
Feb. 6, 174 a 175 3.264 a 3.231 654 a 66£ 65£ a 66 58 a 5S£ 115 a 116
“ 13, 173 a 1744 3.274 a 3.234- 65 a 65£ 654 a 654 584 a 584 1154 a 116
20, 1724 a 174 3 274 a 3.231 65* a 65£ 654 a 651 584 a 584 115* a 116
27, 173* a 174 2.2SJ a 3.22 65* a 65 4 6 5 | a 66 5S1 a 581 1151 a 1164
5, 17*4 a 1751 3.25 a 3.214 651 a 66£ 66 a f>6£ 584 a 59 116 a 117
12, 177 a 173 3 15 a 3.181 66 a 66£ 67 a 6 7 | 59 a 59-4 1174 a 118
19, 176 a 177 3.224 a 3.181 6 5 4 a 664 66 a 66£ 584 a 59 116 a 117
‘ 26, 179J a 182 3.15 a 3.10 671 a 63£ 68 a 68f 604 a 61 120 a 121
April 2, 1774 a 181 3.181 a 3.124 661 a 67 67 a 671 594 a 60£ 118 a 120
9, 184 a 185 3.08 a 3.064 6 8 4 a 69 681 a 694 6 Id a 62 1 2 1 4 a 122
« 16. 189 a 191 2.974 a 2.95 70 a 71 704 a 714 624
a 644 127 a 128
u
23, 190 a 192 3 054 a 2.95 714 a 711 714 a 72 621 a 634 124 a 125
“ s o , 195 a 198 2.90 a 2.85 73 a 74 734 a 744 65 a 66 130 a 131
May 7, 192 a 195 2.964 a 2.90 72 a 73 724 a 734 634 a 644 126 a 127
“ 14, 192 a 187 2.95 a 3.02 714 a 701 714 a 71 624 a 63 124 a 125
“ 21, 196 a 198 2.874 a 2.834
74 a 754 78^ a 75 65 a 66 130 a 131
tl 28,
201 a 2034 2.8 14 a 2.77* 754 a 761 754 a 764 67 a 674 134 a 135
June 4, 218 a 210 2.724 a 2.684 78 a 79 774 a 744 684 a 69 135 a 1.36
“ 11. 215 a 218 2.65 a.2.60
79 a 794 78 a 79 71*r a 72 143 a 144
U
18, 216 a 219 2:61 a 2.88
794- a 80£ 80 a 804 72 a 73 145 a 1454
ft
25, 235 a 238 2.374 a 2.414 86 a 87 . . a .. 76 a 77 154 a 155
July 2, 270 a 295 2.15 a 1.92 4 93 a 94 . . a .. 85 a 95 185 a 195
9, 292 a 298 1.95 a 1.874 . . a . . 200 a2l5 96 a 98 184 a 188
it
16, ‘288 a 290 Nominal.
ti
23, 273 a 2.82 2.1 0 a 2 .0 1 4
a .. 101 a l 03 90 a 93 182 a 184
“ 30, 270 a 2744 215 a 2.074 . . a . .
98 alOO 8 8 4 a 9 0 4 178 a 180
. . a . . 103 al05 91 a 93 184 a 185
Aug' 6, 279 a 2S3 2 .0 0 4 a 2.00
u
13, 271 a 277 2,05 a 2.074
914 a 924 183 a 1854
it
20, 278 a 2794 2.06 J a 2.024 100 a 1024 101 103 911 a 924 183 a 184

The sales of United States stocks abroad caused some advance in the rates
particularly of the 5-20’s, and the prices ranged as follows :
PRICES UNITED STATES PAPER.

18SI.—v
73-10,
Reg.
Coup. 5’s, 1874. 3 years.
1014
1054
96
1064
1044
96
1054
1664
104
96
105*
1064
106
97
107
107
106
106|
100
1074
1074
1074
100
108
1094 1 0 0
1094
1094
110
100
lit
1114
111
1104
100
1114
/— G’s,

January 2 ..
“
9 ..
“
16..
“
2 3 ..
“
30..
February 6 ..
' “
13..
“
2 0 ..
“
27..




lyearcertif.
New.
Old.
1014
97f
102
974
1024

103
1024
1024

103
103
103

974
97
974

9Sf
98#
994
994

Gold.
1514a 1514
152 a 1524
155 a 1554
156 a 158
1564 a 1564
15H§ a 159#
1594 a 1594
159# a 161
159# a 161

246
March

J o u r n a l o f B a n k in g , C u r r e n c y , a n d F in a n c e .

99|
1611 a 1611
99f
1621 a162§
19..
991
162 a 1621
26..
“
m i
991
1694 a 179
April
2 ..
in
991
1664 a 1674
“
9 ..
...
991
1691 a 170
m i
<<
16..
112
107J
99
•. *
173 a 189
“
23..
1051
108
109
1744 a 179
109
97
«
114
3 0 ..
114
102
in
981
1791 a 1794
••■
May
113
7 ..
113
...
102
1091
981
1734 a 1734
ft
14..
114
1141
102
981
1721 a 1721
111
...
((
2 1 ..
114
114
111
183 a 1831
102
981
...
114
114
28..
102
111
186 a 1861
981
June
4 ..
109
1131
1904 a 191
1094
98
102
...
ft
108
1 1 ..
113
1081
1981 a 198f
102
. •.
97|
“
18..
107
112
1951 a 196
102
107
97
ft
2 5 ..
1041
112
102
212 a 216
1061
961
July
2 ..
1041
111
102
1051
235 a 240
94
...
“
...
9 ..
104
104
102
2661 a 267
105
94
16..
102 J
1024
102
1031
244 a 285
941
u
2 3 ..
1021
1021
102
1031
250 a 268
921
. •.
30..
951
251
a 2511
107
107
93
1074 •. •
6 ..
Aug.
1061
1051
941
260 a 2601
99
1071
“
13..
1064
2561 a 256
107
100
108
95
...
1081
**
20..
1081
100
110
...
944
2571 a 2571
The different descriptions of the United States stocks upon the market affordvarious terms of investment, and ran much upon the fashion of the moment. Many
persons bought 7-30, interest in paper, because they were convertible into sis
per cent, long stock three years hence, but a great saving would have been effect­
ed by buying those stocks directly at the market price. The Treasury Depart­
ment issued a notice th at the interest on the 10-40’s, due September 1, and of the
5-20’s, due November 1, would be advanced to the holders. This notice caused
an advance in the price of those stocks equal to the premium on the gold.

ft

5 ..

[S e p te m b e r,

1 2 ..

H I*
112
112
112
111
112

111
112
1121
1121
110
112
1121

100
100
100
100
100
102
102

111
1101
1101

103±
103
108
103

JOURNAL OF BANKING, CURRENCY, AND FINANCE.
T he banking movement has remained, during the month, rather quiet. The
institutions are mostly over charged with the paper of the government, and have
little demand from trade for the usual discounts. The effect o f the currency, by
forcing cash business upon merchants, has made them independent of the banks,
with the exception of those who have dealings with the governm ent; as all
such do not get their pay regularly they, therefore, require aid from the Banks.
These institutions look forward to great vicissitudes. The most of the business
they have done in the last three years has been government business, growing
out of the immense expenditures. This has been very profitable in more than
one sense ; it has given them high rates of interest on full liens ; it has, by in­
flation, enabled them to get in debts that might otherwise have been doubtful,
and has given great value to their specie relatively to their debts.
The return
of peace and the redemption of the currency, will bring the reverse of all this.
W hen the government business ceases, there will be a renewed demand for mer­
cantile discounts, but it will be a long time before the currency will be so re­
stored as to render credit operations safe or general, and they will, a t all events,
be a t falling values. Nothing can be more hazardous to Banks than such a state
of affairs ; many of those institutions th at have now this money in hand, and
are able to apply government paper in payment of their debts, think seriously of
winding up. The Seventh W ard Bank is an instance in which this determina­




1864.]

J o u r n a l o f B a n k i n g , C u r r e n c y , a n d F in a n c e .

247

tion to close business has been carried out very successfully. It paid off its de­
posits. $1,800,000, in a few days, and by stopying business, its notes receivable
ran off as they matured. It divided forty per cent in specie on its capital, two
dividends of five per cent each on its earnings, a dividend of the surplus of the
old Bank, and another of that of the new institution, and will divide sixty per
cent more, in paper, soon. This the proprietors thought much more judicious
than encountering the hazards of an unknown future.
The following letter from the Ex-Secretary of the Treasury, indicates the fear­
ful evils to which the country is exposed by incapable rulers, and the persistency
with which these destructive ideas of Mr C h a se have been followed up. The
letter is in reply to one from Hon. J o s e p h C a b l e , inquiring for the reasons
which led to the former’s resignation :
W ashington , July 11, 1864.
My D ear S ir .—We have not written each other frequently of late, but my regard
for you has by no means diminished. Hard at work, 1 have not had time for corres­
pondence, but my heart still holds to my old friends.
I trust there is no ground for the fear that the country is again to be cursed with
the miscellaneous currency of local corporations, but it is impossible to forsee what
is to come. It was one of my strongest desires to give the people a uniform currency,
made, in the end, equivalent to gold everywhere. My efforts were stoutly resisted
outside, and had not earnest support inside of the administration. They were stead­
ily prevailing, however, when a sense of duty to myself and the country, alone, com­
pelled me to resign. I hope they will not be abandoned.

Your friend,
Hon. J oseph C able.
S. P. C hase.
The local Banks grew up during 80 years of the most extraordinary prosper­
ity, with men of the type of M oses T a y lo r , J ames G a l l a t in , T homas T il e s t o n ,
J ames P u n n elt , & c.. &e.. at the head of them ; men whose great genius and
business means upheld the Treasury, with its incapable head, and mass of cor­
rupt hangers on. These banks, with their able managers, M r. C h a se says he
sought to supplant, with banks started by inexperienced persons, and, in many
cases, by mere aspirants for political advancement, who were to issue inconvert­
ible paper of every shade of discount, and only nominally redeemable in green­
backs. He intimates that he resigned because he could not work out this great
iniquity.
'The old system is the only uniform one, becanse it adapts itself entirely to the
local wants, while all the circulation comes up to the uniform lever of specie pay­
ments. The circulation of New England is based upon chartered institutions,
with three exceptions in Massachusetts and one in Vermont. Each of these
States has free banking laws, but they are practically inoperative. The circu­
lation of the New England States is based upon the value of the charter to the
bank, the bank capital, and the personal responsibility of the stockholders. In
Massachusetts the banking laws require fifteen per cent of the capital to be kept
in specie. In Maine five per cent is the minimum. Iu Connecticut the commis­
sions report that the security of the circulation depends upon the solvency of the
banks. The present free banking law is not practically in force in Illinois, and
in Indiana the bank circulation is secured by United States stocks, or any sol­
vent State stocks paying interest. Federal stocks, with ten per cent margin
over the New York Stock exchange prices, are the basis of circulation in Iowa,
with the privilege to the State Bank to issue circulation to its branches ou the
deposit.of twelve and a half per cent of national stocks. The general banking law
of Michigan makes provisions for a circulation limited to three-fourths of the
capital stock of each bank, the same to'be secured by United States securities,
or the stock of any solvent State, to be taken at or under ninety-five per cent of
the market or par value. The circulation of the Missouri banks is limited to
three times their capital, and they are required to keep thirty-three and one-third
per cent of their circulation. In Wisconsin the general banking law demands
as security for bank note, federal or State stocks of equivalent value, to be taken




248

J o u r n a l o f B a n k i n g , C u r r e n c y , a n d F in a n c e .

[S e p te m b e r ,

at or nnder par. The Kentucky banks are chartered, and, by their charters,
their circulation has prescribed limits, and the same system is adopted in Ohio,
Maryland and Pennsylvania. In New Jersey, bonds and mortgages and public
stocks are received as security for the circulation of the banks.
It will thus be seen that each State has its banking rules, and these are spec­
ially adapted to its own wants, as proved by experience. It was this system
which Sir. C h a se designed to overthrow, and supersede by his favorite National
Bank system ; a system that has, as we have said, grown up with, and is the
offspring of, the wants and trade of the country, and is presided over and man­
aged by the leading financial and commercial minds of our country. That it was
not perfect is an accusation that can be brought against every human institu­
tion. Can it be anything less than madness to ruin such a system, and to ig­
nore such men in times like these, and, in their stead, thrust upon the com­
munity an untried scheme, managed by inexperienced hands, and fa!, with evils?
On this subject of National Banks we have received very many letters, agree­
ing with us in the opinions we have from time to time expressed ; but the writer
of the following appears to take a different view. Certain immaterial portions
of the letter are ommitted :
W estport , C onn., August 6th, 1864.
D ear S ir ,—The statistical matter in your M agazine is always useful and handy for

reference, and really desirable; but. we are sorry to say, we never read an article,
in which you refer to the financial department of our Government or National Bank­
ing without very unpleasant reflections.
We have no time or desire to enter at length into this discussion, but would state
one or two particulars. You say many of the Banks ('* Commercial Chronicle and Re­
view,”) would have turned their two year legal-tenders into the Treasury for deposit­
or’s certificates, had there been any assurance that they would not have to take pay
in National Bank notes, die. We have been engaged, under the National system, some
three or four months, and have had almost daily applications for currency, with the
offer of sight checks from your best City Banks, bankers, and brokers, for all the cur­
rency we could spare. In your “ Journal of Banking, Currency, and Finance,” you
seem to be convinced that-the demerits of the National Banking Act will convince all
that Government has certainly nothing to gain, but everything to lose, by encourag­
ing the act—you fear they will experience little but disappointment, die.—Are these
remarks honest, or made from blind prejudice or malice ?
*
*
*
*
*
*
*
* Can you tell us why none of the great staples of the West can
be bought with State Bank bills* Why is it that legal-tenders or National cur­
rency is demanded t Why is it that National currency is not returned for redemption
after being out six months, (we know of two Banks, one in New Haven and one in
Stamford, whose circulation, amounting to some 8300,000, has been out from six to
eight months, and not a dollar returned by their redeeming agents,) when the State
Banks have to redeem their circulati a once in about six weeks ?
Is it because the State Banks are the more safe ?
*
*
*
*
*
*
Our national debt is lamentably large, and never can be paid without a united action
of the Banks. This debt is principally owed to the bankers—every dollar in circula­
tion gives evidence of the confidence the people have in National currency ; and, we
think, if every bank could go under the National act, within a month, gold would go
down to, not over, from 30 to 40 per cent premium—even under all our war troubles
—exchange would be uniform, and, were the war to end twelve months following, our
currency would be equal to that of the Bank of England. We speak only from ex­
perience, and of facts that we do know.
Truly yours,
-------------

First.—In stating that the City Banks would have turned their two year le*
gal-tenders into deposit certificates, bad they been assured they would not have
to take pay in National Bank notes, &c., we simply stated a fact, which our cor­
respondent does not attempt to controvert. Whether, or not, it was foolish for
them to be afraid of National Bank notes, is another question, about which men
may differ ; but still the fact remains the same—they offered to loan the Govern­
ment their money if it would agree to pay it back in legal-tenders, and not in
National Bank notes. It was their own rnoDey, and they had a right, in loan­




1864.]

J o u r n a l o f B a n k in g , C u r re n c y , a n d F in a n c e .

249

ing it, to make such conditions as they choose. Now, for us to have stated that
such was the fact, when it actually was, does not look like “ malice ” on the
M a g a z in e ’s part, according to our ideas, nor yet like “ blind prejudice.”
Second.—Our correspondent also calls in question the remark made by us, to
the effect that all will soon be convinced that Government has nothing to gain
but everything to loose by encouraging the organization of National Banks.
Had our friend stated some advantage these National Banks were conferring up­
on the country, perhaps we might have become convinced of the beneficence of
these C hase institutions. It is, however, a little peculiar, if they are such bles­
sings, that we should never have met, in all our reading, with a clear statement
of one single advantage the Government was to obtain from them. To be sure,
in the above letter it is stated, that “ if every Bank could go under the National
Act, within a month, gold would go down to, not over, from 30 to 40 per cent
premium.” This would certainly be a very great advantage, in fact an immense
benefit to the Government; and yet as no reasons are stated why such a revolu­
tion would be produced by such a course, we must be excused for witholding our
assent to the proposition. On the contrary, according to our ideas, no greater
misfortune to the Government finances could happen than the sudden winding up
of our State Banks, and their reorganization under the National act. The State
institutions of this city alone, hold, now, about $200,060,000 in Government pa­
per and securities. Suppose (as would be the case), in closing up, they were
compelled to throw that amount, or one-half of it, upon the market, how much
would Government securities be worth? Does it not look as if it would break
the market and destroy the Government credit 1 Now, add to this result the
effect caused through a similar action on the part of all the State Banks of the
country—who can measure the disaster that would follow ?
Or take another view of it—suppose that the Banks of this city were safely
organized under the United States act, and that then they should deposit with
the Comptroller United States bonds, and receive 90 per cent in currency ; would
not that be a decided injury to the Government —this increasing the volume
of the currency without the least advantage to itself 1 If our currency is to be
inflated, and we to be cursed with a further rise in prices, why should it not be
done by the issue of greenbacks, instead of National Bank notes? In one case,
the Government loans its notes to the Banks for nothing, and, in the other, loans
them to the people for value received—that is, pays them out on its debts. Can the
Government—yes, can the people, afford to be so generous to monied institutions?
But we cannot spend further time and space enumerating the evils of this new
system. They are too many and too evident, and have been too frequently re­
ferred to, from time to time, in these pages to need repetition here.
Third.—We are further called to account, for saying that we fear those who
are organizing these Banks will experience little but disappointment. Pray do
not let it be understood by our words, that we fail to see you are making a
good thing out of the Government at the present time. Beceiving on the bonds,
which your capital is invested in, six per cent in gold, and also receiving on them
ninety per cent in currency (which you say you find no difficulty in keeping out),
besides loaning the Government funds you hold on deposit, and getting a hand­
some brokerage on all loans made by or through you to Government, is certainly
very encouraging to beginners, and should make you very thankful to the dear
Government that cherishes you so tenderly. But although you are now thus
swiftly gliding down the stream, with every sail set, while all about is wearing
a roseate hue, looking so prosperous, there are dangers—very many—and you
will soon realize the fact. Open your eyes, and see if you do not even now dis­
cover a little cloud rising ; it may be, with your vision, no bigger than a man’s
hand, but is it not there ? Did you know that to day, with gold, we could buy
up all your capital, and all your circulation, at thirty seven cents on a dollar !
That a man living in California, and worth seventy-four thousand dollars in their
currency, can come east and buy the entire capital of a $200,000 National Bank !




250

J o u r n a l o f B a n k in g , C u r re n c y , a n d F in a n ce .

[S e p te m b e r ,

Under such circumstances, do you think a prudent man would start a Bank, un­
less the Government patronage induced him to ? And suppose that patronage
were to be taken away, and, further, that the currency should continue to depre­
ciate another year as it has the past year—what would happen ? Would you
be as happy as now, and have the same confidence in National Banks? Or, ra­
ther, would you not, in your undertaking, “ experience little but disappointment 1”
Fourth.-—We are also asked why National Currency is not returned more fre­
quently for redemption, and why greenbacks, instead of State Bank bills, are de­
manded in the purchase of some of the great staples of the West. The answer
is certainly very simple. Greenbacks are, by law, made a legal-tender, and are,
therefore, at par in all parts of the country, whereas, State Bank bills not being
legal-tender, are at par only at their points of redemption. So, also, Government
takes greenbacks and National Bank notes for taxes, stamps, loans. &c., and pays
them out to the army, &c., but it will not take nor pay out State bills. Hence
it is that United States notes and National Bank notes are in demand, and the
latter are not returned for redemption—they will serve purposes that State bills
will not. Whether State Banks or National Banks are the safer, in no way enters
into the account.
In the last month the New York Banks have, generally, drawn in their loans
to the Treasury as deposit certificates, and have received large deposits from the
country. The following are the weekly returns brought down to the latest dates :
NEW YORK BANKS.

N ew Y ork B anks . ( Capital, Jan., 1864, $------------- ; Jan., 1863, $69,494,577.)
D a te .

January

L o a n s.

S pecie.

C irc u la tio n .

N e t D e p o s its .

C le arin g s.

2 ,.. $174,714,465 $25,161,935 $6,103,331 $140,250,856 $300,753,147
9 .. . 178,009,701 25,122,002 6,032,646 134,861,977 387,546,217
165,991,170 23,884,264 6,008,182 130,311,046 416,962,806
16,..
2 3 ..
.
162,925,880
24,077,513 6,049,807 130,136,203 460,811,543
30..
.
162,296,896
24,203,682 5,913,558 130,665,415 427,306,608
.
February 6. .
163,076,846
24,070,791 5,974,762 133,849,042 425,430,985
13..
.
165,090,329
23,521,453 5,916,707 140,464,616 467.751.745
168,302,935
22,523,918 5,908,394 148,014,106 514,887,411
20. .
.
2 7 ..
.
174,928,205
22,301,687 5,907,861 154,875,059 575,442,304
March
6 ,..
182,317,378 21,188,034 6,987,167 158,999,668 518,951,433
189,757,746
20,750,405 5,918,807 168.044.977 688,822,278
12..
.
19..
.
198,229,513
21,059,642 5,889,197 169.637,975 618,388,858
26 ..
.
199,372,437
20,425,504 5,514,139 168 315,904 576,253,989
April
203,993,131 19,526,665 5,708,908 171,151,297 676.372.745
2 ,..
9 .. . 204,333,192 20,924,287 5,804,511 170,513,020 658,352,112
16,..
198,703,699 21,687,670 5,779,650 168,350,790 646,593,643
196,286,72?
24,868,003 5,679,947 161,978,166 672,442,840
23..
.
194,157,495
24,087,343 6,626,978 164,578,919 446,587,420
80 ..
.
192881,246
23,082,028 5,594,832 168.562,197 410,052,013
7 ..
.
May
194,178,921
22,635,155 5,482,357 174,426,682 413,552,127
1 4 ..
.
197,356,939 22,091,691 5,367,355 173,111,884 486,884,114
21. . .
195.813462 21,973,180 5,240,812 171,765,696 410,972,198
28,..
196,740,609 22,461,604 5,180,6.39 174,516,367 477,648,207
4 .. .
June
194,935,822 24,041,704 5,049,457 172,537,248 445,519,165
11,..
195,773,583 22,916,291 4.959,096 169,445,767 431.158.427
18,..
197,077,002
22,000,988 4,807,195 158,772,982 442,840,362
25..
.
198,089,016
21,206,685 4,752,917 154,989,844 452,583,531
July
2 ..
.
199,699,742
20,084,917 4,696,107 153.525.977 336.521.428
9 ..
.
199,043,887
21,234,354 4,724,538 151,816,947 466.125,408
1 6 ..
.
190,885,761
21,033,912 4,688,892 147,981,325 403,144,196
2 3 ..
.
185,838,480
21,051,896 4,553,426 152,929,633 399,439,731
3 0 ..
.
185,563,507
21,159.518 4,522,728 153,279,263 415,360,189
6 ..
.
August
185,074,244
21,080,309 4,417,804 155,826,514 422,879,926
13..
.
185,998,407
20,794,268 4,346.658 156,536,217 382,685,847
2 0 ..
.




1864.]

Journal o f Banking, Currency, and Finance.

261

The National Banks at their quarterly statement, July 1, were as follows :
CONDITION OF THE NATIONAL BANKS ON THE MORNINO OF THE FIRST MONDAY OF JULY, A.D.
18C4, BEFORE THE COMMENCED ENT OF BUSINESS ON SAID DAY.

Resources.
Loans and discounts............................................................................
Real estate, furniture and fixtures...................................................
Expense account ...............................................................................
Remittances and other cash items.....................................................
Due from National Banks...................................................................
Due from other banks.........................................................................
U. S. Bonds, and other U. S. securities..............................................
Bills of other banks ...........................................................................
Specie and other lawful money.........................................................
Other items......................

870,746,513
1,634,049
505,341
5,057,122
15,935,730
17,337.558
92,839,500
5,344,172
42,288,797
842,017

33
46
31
90
13
86
00
39
84
73

Aggregate..........................................................................................
Liabilities.
Capital stock paid in ........................................................................
Surplus fund ....................................................................................
Notes in circulation..........................................................................
Deposits ...........................................................................................
Unpaid dividends ...........................................................................
Due to National Banks.......................................
Due to other banks .........................................................................
Profits ...............................................................................................
Other items........................................................................................

8252,273,063 75

Aggregate..........................................................................................

$252,273,803 75

875,213,945
1,129,910
25,825,665
119,288,453
125,785
17,303,873
10,078,133
8,094,330
213,788

65
22
00
27
11
12
25
11
02

H ugh M c Culloch , Comptroller.
W ashington , DC., August 16, 1864.

The returns for the previous quarter will be found page 139 of the August
number. The leading features compare as follows :
March.....................
Ju ly .......... ..............

Loans.
$29,583,559
70,746,513

Legal-tenders.
$22,961,441
41,286,797

Circulation.
$9,797,975
25,825,665

Deposits.
$51,274,912
119,288,453

Increase..............

$41,162,954

$18,325,356

$16,027,690

$68,013,541

These deposits are largely United States money. The former returns made a
distinction between United States and individual deposits. In the present re­
turns the former are disguised in the latter. The banks hold $92,350,000 United
States bonds, or $12,000,000 more than their capital.
Below will be found the weekly returns of the Boston Banks :
BOSTON BANKS.

B oston B anks . ( Capital, Jan., 1863, $38,231,700 ; Jan., 1862, $38,231,700.)

Loans.
Date.
Specie.
Jau. 4,. . 176,81)5,343 $7,503,889
U 11,. . 77,747,734 7,531,195
U 18,. . 75,877,427 7,464,51 1
u 25,. . 74,146.000 7,440,000
Feb 1,. . 73,959,175 7,385,413
U 8,. . 71,765,122 7,265,104
U 15,. . 71,088,849 7,224,924
it 22,. . 71.074,000 7,215,500
tt
29,. . 72,189,003 7,179,310
Mar. 7,.. , 72,687,363 7,108,519




Circulation.
$9,625,043
10,185,615
9,963,389
9,729,000
9,660,163
9,579,020
9,741,471
9,411,000
9,371,440
9,606,318

Due
Due
to banks.
Deposits.
from banks.
$32,525,679 $12,831,000 $12,351,500
31,524,185 12,'103.600 11,019,000
31,151,210 12,041,000 11,769,000
30,893,000 11,106,700 12,227,000
30,655,782 10,825,000 11,854,500
30,030,292 11,315,000 12,272,000
30,412,647 11,615,000 13,448,000
31,831,000 11,329,600 14,925,404
33,155,888 12,224,603 16,189,720
33,688,017 12,313,829 16,535,992

252
Date.
“ 14,..
“ 21,..
“ 28...
April 4 ,..
“ I t ,- .
“ 18,..
“ 25,..
May 2 ,..
“ 9 ,..
“ 16,..
“ 23,..
“ so ,..
June 7,..
“ 14,..
“ 21 ..
“ 28,’.’.’
July 5,..
‘ 12,..
“ 19,..
“ 26,. .
Aug 2,. .
“ 9,..
“ 16,..
“ 24,..

Journal o f Banking, Currency, and Finance.
Loans.
Specio.
72,105,111 7,052,181
73,207,121 7,033,721
73,485,514 7,016,086
71,838.506 6,856,708
72,620,348 6,932,192
72,328,896 6,869,726
72,538,611 6,952,498
71,270,181 6,642,798
69,471,481 6,716,484
68,888,681 6.644,493
66.683,510 6,573,181
69,201,301 6,541,201
67,093.500 6,509,181
67,942,400 6,524,207
68.880,121 . 6,507,021
69,691,000 6,470,600
66,950,111 6,290,521
66,452,107 6,301,101
66,079,000 6,246,211
59.973,511 5,733,010
59.760,398 5,729,431
60,655,181 5,734,101
61,175,211 5.665,981
61,817,002 5,660,911

Circulation.
9,490,311
9,548,211
9,210,096
9,442,082
10.447.916
10,331 806
10,938,991
10,127,097
10,5 21,591
10,126,473
9,899,193
9,681,204
9,160,621
8,771,181
8,933,121
9,068,712
9,574,009
9,936,491
9,890,081
9,775.481
9,327,101
9,685,671
9,538,841
9,567,921

Deposits.
33.891,204
35,090,181
34,859,508
32,861,609
33,324,978
33,510.054
31,810,971
31,461,499
81,172,584
31,633,071
36,605,1S1
34,391,208
32,771,821
83,305,220
82,740,201
30,865,101
29,940,102
32,260,004
30,584,101
27,905,491
27,866,201
27,806,030
27,773,821
27,221,731

[September,

Due
to banks.
12,701,181
13,092.531
13,352,706
13,601,005
15,094,360
14,447,997
14,715,981
14,206,581
12,801,000
12,500,671
11,871,719
11,101,307
10,875.181
10,710,089
11,681,602
12,260.080
11,880,312
11,306,002
10,003,181
9,151,111
8,947,021
9,842,621
9,855,921
10,052,871

Due
from banks.
17,815,231
17,266,741
17,071.732
15.786,091
17,362,371
17,054,244
15,790,498
14,206,592
16.239,000
16,201,083
15,733,691
15,925,201
16.130,720
15,057,131
14.790,012
12,872,111
13,809,002
13,434,528
13,942,001
13.473,621
13,039,587
13,261,654
12,798,821
12,007,481

The County Banks iof Massachusetts were as follows
Loans.

July 2 ,.. $56,628,376
“ 30,..

56,487,727

Specie.
$1,348,376
1,298,756

Circulation.
$21,694,366
21,743,761

Deposits.
$13,141,787
12,585,810

Balances.
$5,427,595
5,184,681

As compared with last year, they were as follows :
July 30, 1864___
Aug. 1, 1863___
Aug. 2, 1862 ___

Loans.
$55,487,72 7
56,490,588
48,847,1'.>7

Specie.
$1,39c!,756
1,6811,139
1,8115,116

Deposits.
$12,585,810
13,504214
10,705,931

Circulation.
$21,743,861
20,746,357
17,837,687

The circulation in Massachusetts increased in proportion to the activity of
manulacturing under government orders and contracts. These have bestowed a
greater degree of' prosperity upon Massachusetts than she ever before enjoyed.
The returns of the Providence Banks were as follows :
L oans.

July 23......................
“ 30,.....................

§24,201,200
24,014,200

Specie.

$349,600
349,400

C ircu latio n .

$3,996,400
4,024,800

D eposits.

$5,440,900
5,435,000

The quarterly statement of the Banks of Ohio, to the first Monday in August,
as compared with those of the last quarterly statement, and those for August,
1863, 1862, and 1861, are as follows :
Stocks...........
Specie............
E’n deposits..
Loans............
Circulation...
Deposits........

A ug., 1864.

M a y ,’64.

A ug. 1 , ’63.

A ug. 1 , ’62.

$4,555,820
1,233,582
1.983,193
10,090,139
5,538,796
10.858,623

$4,640 820
1,370.871
2,648.462
11,456,954
5,941,679
11,167,217

$5,177,500
2,390,933
2,149,806
10,435,932
6,915,475
11,283,209

$5,602,000
3,384,932
3,353,592
11,087,323
9,973,832
8,598,426

The weekly returns of the Philadelphia Banks are as follows :




A ug. 1 , ’61.

$5,589,750
2,199,825
2,113,219
10,358,951
8,800,081
8,920,932

1864.]

Journal o f Banking, Currency, and Finance.

263

PHILADELPHIA BANKS.

P h il a d e l ph ia B anks . ( Capital, Jan., 1863, $11,140,080; 1862, $11,970,130.)
D ue

D uo

Date.
Specie. Circulation. Deposits. to banks. from banks.
Loans.
Jan. 4 ,... $35,698,808 $4,158,585 $2,055.811 $29,878,920 1$4,816,763 $2,963,563
M
35,458.967 4,158,235 2,050,891 30,484,227 4,001,473 2,814,188
11....
it 18,...
34,896,842 4,158,125 2,044,427 31,194,851 4,330,120 8,063,148
U 2 5 ,...
34,849,959 4,103,065 2,047,846 32,354,253 3,500,693 2,905,921
Feb. 1 ,...
34,345,126 4,108,109 2,056,532 32,027,147 3,453,431 3,271,306
Feb. 8 ,...
34,146,677 4,102,671 2,066,069 31,033,030 4,080,059 2,4 61,873
<( 15,.. .
34,590,880 4,102,748 2,069,061 29,911,704 4.322,609 2,080,750
U 22,..
35,059,676 4,102,688 2,119,488 30,783,741 4,463,751 2,099,778
« 2 9 ,...
85,519,704 4,102,848 2,167,348 31,435,753 4,837,264 2,114,227
Mar. 7 ,.. .
35,913,334 4,102,632 2,208,492 31,712,547 5,323,316 2,116,042
Mar. 14,..
35,956,678 4,099,707 2,308,250 32,511,405 5,508,14 6 2,333,819
U 21,..
36,412,923 4,099,664 2,340,132 32,835,038 6,933,974 2,428,227
“ 29,..
36,695,415 4,096,401 2,357,768 33,156,496 5,791,191 2,724,935
April 4 ,..
37,262,220 4,095,495 2,390,092 34,404,607 5,641,638 3,425,805
“ 11,..
37,032,110 4,093,461 2,379,827 35,958,444 5,855,277 3,799,151
“ 18,..
39,535,334 4,095,387 2,329,590 38,174,046 5,74S,257 3,291,176
“ 25,..
89,570,567 4,095,475 2,253,386 37,393,247 6,067,966 2,592,466
May 2,..
89,770,436 3,972 349 2,241,885 87,758,836 6.374,631 2,730,540
9 ,..
39,689,436 3,967,263 2,152,827 37,466,311 6,636,576 2,786,080
a 1C,.. .
39,262,695 3,964,522 2,'31,919 37,638,814 6,580,548 2,853,894
“ 23,..
39,639,436 3,967,263 2,152,827 87,466,311 6,636.576 2,786,080
“ 30,..
39,262,695 3,964,522 2,131,919 37,638,814 6,580,54 8 2,858,894
June 7 ,..
39,723,493 3,694,320 2,100,927 38,249,800 5,993,116 3,186,259
U 14,..
40,286,433 3,964,758 2,077,753 38,367,171 6,930,707 3,007,283
“ 21,..
40,286,488 3,964,529 2,074,273 37,588,203 6,403,664 2,998,648
“ 27,..
42,057,76S 3,963,640 2,092,470 39,122,865 6,544,668 3,139,182
July 4,..
40,918,009 3,955,836 2,154,258 37,945,805 6,225,952 4,325,450
11,..
40,717,527 3,949,105 2,337,651 37,812,423 6,197,570 4,658,667
« 18,..
40,731,324 3,948,440 2,208,068 36,462,271 6,189,843 3,616,992
(( 26,.. .
42,067,758 3,963,640 2,092,470 39J22.S65 6,544,668 3,139,132
Aug. 2 ,..
39,277,980 3,962,385 2,24 9,226 36,520,768 6,(59,048 3,816,166
9 ,..
39,142,449 3,962,367 2,231,394 37,234,436 5,992,712 3,7 85,896
« 16,..
39,353,341 3,962,313 2,214,929 36,826,674 5,801,231 3,691,201
(( 24,..
39,401,423 3,962,154 2,222,401 35,869,084 5,73S,141 3,891,137

The last return of the Bank of England showed a further increase in the rate
of interest to seven per cent, in the week ending July 27, and to eight per cent
in that ending August 3. These changes make seventeen in nine months of
nearly one per cent each. The number and magnitude of these changes attracts
attention. They are based primarily upon the fact that the English business is
too much extended. They are conducting too large a commerce on too small a
cash capital, and maDy influences conspire to draw money from England the mo­
ment there is any relaxation in restraints. These are, 1st, the large export trade ;
2d, considerable subscription companies, by which capital is sent out of England;
3d, the usual influence of harvest time is drawing coin into the interior, and 4th,
the rise in prices of many articles of imported produce. These circumstances com­
pel the Bank directors to watch more carefully the course of events, and to act
with greater promptness and vigor when they perceive the reserve falling fast,
under influences that have apparently a permanent character. The raising and
lowering the rate of interest acts like the opening and shutting of flood gates,
restraining the flow of capital on one side, and aiding its supply on the other.
On the 2d November last the rate of money was four per cent, on the 3d Decem­
ber eight per cent, February 25, six per cent, and it has siuce continued to vary
with unprecedented margin. Iu July the rate fell to six per cent, when the sub­
scriptions to paying stocks set in with greater vigor, and the demand for coin
for the service of the crops began to be felt. The declining reserve caused the
Bank at once to raise the rate. I t is to be remarked these sudden and large




254

Journal o f Banking, Currency, and Finance.

[September,

changes create far less anxiety among' commercial people than formerly, when a
riseof one per cent in the bank rate was regarded as a very grave event. The
Bank returns are as follows :
THE BANK OF ENGLAND RETURNS.

Date.

Dec.
U
“
((

2 ,...
9 ,...
1 6 ,...
2 3 ,...
if
3 0 ,...
Jan. 6, ’64
U 1 3 ,...
“ 2 0 ,...
U 2 7 ,...
Feb. 3 ,...
It 1 0 ,...
tf
1 7 ,...
u 2 4 ,...
March 2 ,...
W
9 ,...
u
1 6 ,...
tt
2 3 ,...
u
30... .
April 6 ,...
“
12 ,...
if
2 0 ,...
U
2 7 ,...
May 4 ,...
11 ,...
i<
1 8 ,...
ft
2 6 ,...
June : 1___
«
8 ,...
<4
1 5 ,...
44
2 2 ,...
44
2 9 ,...
July 6 ,...
1 3 ,...
44
2 " ,...
44
2 7 ,...
Aug.. 2 3 ,...
3 0 ,...

Public
Circulation. Deposits.
21,685,732 7,234,894
20,801,207 8,629,856
20.382.764 9,103,738
20,273,799 10,266,546
20,686.538 10,841,991
21,322,304 10,001,982
21,396,420 5,264,097
21,445,793 5,689,074
20,875,825 6,337,246
21,162,626 6,748,867
20,708,113 7,254,682
20,696,172 7,079,789
20,207,871 8,153,601
20,840,374 7,893,633
20,563,325 8,863,364
20,333,112 8,570,711
20,366,705 9,841,323
20,908,644 10,280,458
21,528,914 9,818,880
21,785,597 5,929,922
21,672,783 5,787,329
21,484,602 6,217,965
22,046,792 6,981,132
21,478,987 7,299,434
21,313,352 7,568,661
20,868,047 7,971,003
21,246,840 8,286.719
20,766,405 8,748,510
20,597,557 8,512.311
20,628,207 9,287,594
21,153,606 10,213,585
21,890,063 9,489,130
22,161,001 4,683,803
22,302,688 4,462,490
22,158,547 4,961,046
22,489,710 5,155,704
21,881,314 4,963,222

Private
Deposits.
12,924,545
12,981,276
13,265,068
12,711,637
13,021,212
13,052,604
15,411,794
13,879,877
13,406,627
18,372,981
12,882,226
13,306,156
12,426,673
13,541,278
12,434,975
13,105,800
12,480,154
12,658,986
13,348,299
13,586,029
13,684,069
12,620,036
12,278,903
12,901,160
12,962,402
12,882,042
12,493,776
11,966,204
12,790,361
13,051,661
12,890,244
13,471,415
15,082,746
13,408,675
13,719,621
13,519,626
14,419,766

Securities.
31,980,889
32,622,659
32,803,049
32,270,286
33,438,154
33.4S6.952
31,726,575
31,445,860
31,017,449
31,436,384
36,928,317
31,078,328
30,604,827
31,980,446
31,769,311
31,929,164
32,112,543
38,472,484
34,228,509
31,385,305
81,596,179
30,961,635
82,070,427
32,239,210
31,855,696
31,297,181
31,329,121
30,711,740
30.884,192
31,948,856
33,297,897
34,286,592
31,687,509
3n,471,085
31,346,657
31,909,793
32,202,646

Coin and
Bullion.
13,048,475
13,008,617
13,675,474
14,217,067
14,362,605
14,196,754
11,708,597
12,974,109
13,022,220
13,303,243
13.472,271
13,588,635
13,819,412
14,034,222
13,8S4,3S9
13,916.943
14,499,201
14,163,519
13,616,762
13,080,300
12.743,302
12,567,776
12,454,244
12,705,251
13,267,4 6
13,713,943
14,062,761
14,043,129
14,304,205
14,319,061
14,197,849
13,930,809
18,701,112
13,171,561
12,996,6S5
12,877,483
12,609,925

Rate o!
Discount,
8 per cfc
8 “

7
7
7
7
7
8
8
8

7
7
6
6
6
6
6
6
6
6
7

7
9
9
8

7

ft

U
“
**
U
U
U
if
tf
it
a
M
*<
M
ft
ft
U
“
M
“
«
U
M
“
U

7
7 ft
6 ft
6 ft
6 tf
6 ft
6 M
6 «
8 It
8 ft
8 i

The rapid decline in the reserve of the Bank, and the bullion on hand, aided
by the amount of American bills running on Germany for pay of stocks, threat­
ened to produce a further rise in interest.
The returns of the Bank of Frauce show no material change in the course o f
its movement, and it has not raised its rate of interest, as it usually does, follow­
ing similar action on the part of the English institution. Anew change is about
to be made in the affairs of the Bank of France. It is known that the Bank of
Savoy, forming in the French system an anoinnlly, was, by the annexation o f
Savoy to France, deprived of its Italian business, and not hoping to be able to
develop its transactions in presence of the Bank of France, demanded of the lat­
ter to bay up its privilege. Negotiations were entered into, but without result,
and the shareholders of the Bank having become impatient, concluded with Mr.
E m ile P e r e ir e the famous convention which everybody knows. Issuing a large
capital, and directed by the ardent promoters of the Credit Mobilier, the new
Bank of Savoy, it was said, was destined to become the rival of the Bank of
France. This chimerical project, our readers will remember, gave rise to a dis­
cussion, in which even the Senate took part, but which ended there. That dis-




1864.]

J o u r n a l o f B a n k in g , C u r r e n c y , a n d F in a n c e .

255

eossion, nevertheless, gave much annoyance to the Bank of Prance, and injured
the interests of credit by doubting for a moment the sound principles by which
that establishment is guided. This incident is now ended. The Bank of Savoy
summoned Mr. E m il e P erf .irf . to fulfil his engagements; but as he did not do
that, the shareholders are in treaty with the Bank of France for the purchase of
their privilege. If we are correctly informed, the bank will give 4.000,000
($800,000) to the shareho'ders of the Bank of Savoy. This will confirm the
privileges of the French Bank in relation to the issue of circulating notes. It
is to be remarked, however, that some of the provincial Banks are issuing inter­
est-bearing notes. The Credit Agricole, of Paris, issue notes bearing $3,650 part
interest, or one per cent per day. These notes are made payable at five dayB
sight; because to make them payable at sight would infringe the privilege of
the Bank of France. The multiplicity of joint stock companies in France seems
to be almost as rapid as in England.
A company witn a capital of 12,000,000f, in 500f shares, lately took in hind
the shipbuilding yards of M . A r m a n , at Bordeaux and Ajaccio, and the engine­
building establishment of M . M a z a l in e , at Havre. 'Phis week the announce­
ment is made that M . C e z a r d , a well known sugar refiner of Nantes, is forming
a company, with a capital of 5,500,OOOf, in 11,000 snares of 500f, for the pur­
pose of taking off his hands his two refineries at Nantes. These refineries are
among the largest in that country, and turn out about 36,000 tons of refined
sugar annually. They are to be taken by the company, with all their materiel,
and the good-will of the business, for 2,700,OOOf, though they are declared to be
worth more. M . O ez a r d is to hold shares in the company to the amount of
1,200,0001. Its name is to be Raffineries Nantaises.
A company headed by M. M ic h e l C h e v a l ie r , bearing the name of Societe
Immobilier dfc Limoges, has been formed, for the purpose of building houses and
selling building ground in that town. Its capital lias been fixed at 1,250,OOOf ,
in 1,500 shares, and it is now soliciting subscriptions to the shares.
The Austrian credit Foncier has been a great suceess thus far, and now that
peace is once more restored, the expansive movement may be considered as hav­
ing a new impulse. The cloud in the future is, however, the possibility of sud­
den peace in the United States. Not that there is not a great deal of suffering
occasioned by the war, but a peace which suddenly throws opeu the Southern
ports, with their supplies of produce at prices now live or six times above peace
prices, would produce such a financial revulsion as might prove very disasterous.
The Bank of France returns are as follows :
BANK OF FRANCE.
Loans.

Specie.

C irculation.

D eposits. In te re st.

January —fr.751,649,983 fr.169,037,010 fr.813,490,825 fr.159,797,667 7
February — 705,516,796
182,573,888
775,096.775
160,110,225 7
195,994,738
746,610,375
March — 642,135,993
142,925,719 6
—
759,926,425
April
643,570.276
219,320,720
133,701,530 6
—
May
767,443,475
683,332,517
242,824,609
178,434,305 8
—
294,892,295
725,381,925
June
577,309,524
156,685,209 6
it
23, 594,563,973
720,243,375
280,511,406
144,559,768 6
it
277,544 816
766,609.875
30, 676,605,538
165,668,712 6
July
276,522,727
772,309,475
170,022,200 6
1 , 662,197.524
792,819,275 152,242,482 6
266.890,961
14, 667,187,446
It
21, 639,299,542
269.810,253
788,378,725
135,282,170 6
it
28, 642,692,154
791,673,525 144,636,985 6
276,162,420
276,790,393
August
786,629,625
157,810,891 6
4, 634,904,899
It
272,433,487
777,023,925
148,866,812 6
11, 633,495,575
The rate of interest in France is, as a general thing, maintained much more
regular, and at lower rates, than in England. The Bank is, however, not ex­
posed to the same number and strength of demands as that of London, and its
reserve of specie is relatively larger.




s

. •

THE

MERCHANTS’ MAGA5
AND

COMMERCI AL

CONTENTS
VOLUM E I I .

OF

REVI EW,

No.

SEPTEM BER,

IV.,

VOL.

1 8 64.

LI.
N U M B E R IV .

A rt .
paoii
I. A VOICE FROM TH E W REC K ............................................................................. ...................... 177
IL

T H E COMMERCIAL PROGRESS AND RESOURCES OF CENTRAL BRITISH
AMERICA. B y H enry Y oule Hind , M.A., F.R.G.S......................................................... 183

III. THE SANDWICH ISLANDS. No. I I I . —H A W A II AND MAUI. By II. B. A ................. 193
IV. FINANCES OF THE STATES.
V. COMMERCIAL LAW No. 14.

N ew J ersey —California ................................................. 200
T H E CARRIAGE OF GOODS AND PA SSEN G ER S... 207

The liability of the Common C arrier............................................................................... ... 207
The Carrier of Passengers...................................................................................................... 210
A Notice by the Carrier respecting his liability............................................................. 216
The Carrier’s liability for Goods carried by Passengers................................................... 212
V I. T H E NEW IN T ER N A L R EV EN U E LAW ................................................................................ 213

COMMERCIAL

CHRONICLE

AND

REVIEW.

The National D e b t...................................................................................................................................... 240
Amount of C urrency and its Increase................................................................................................... 240
Compound Interest N otes.................................................................................. .................................... 241
Conversion of the 7-30’s .......................................................................... ................................................. 241
Sales of 5-20’s a b ro a d .............................................................................................................................. . 241
Rise in Prices and the effect,................................................................................................................. 243
Effect of the Rise on th e M arket and on Consumption.................................................................. 243
The Specie M ovem ent......................................................................................

2

Gold In terest due November 1, and before th at time, to be paid a t once, and am ount of
s a m e .......................................................................................................................................................... 244
Exchange, Price o f sam e.......................................................................................................................... 245
United States Stocks.......................................................................................................................

243

J O U R N A L OF B A N K I N G , C U R R E N C Y , AND F I N A N C E .
Journal of Banking, Currency, and F inance.....................................................




243