Full text of The Merchants' Magazine and Commercial Review : September 1866, Vol. LV, No. III

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MERCHANTS’ MAGAZINE
AND

COMMERCIAL REVIEW.
S E P T E M B E R ,

186

6.

'■'"rmi
MONEY AND BANKS.
B Y J . L . T E L L R A M P F , L .L .D ., P .D .
(C o n tin u e d fro m p a g e 104.)
B A N K IN G .

The functions are deposit and discount. In this respect the subject o f
banking is distinct from issuing notes as currency. A n y man or set o f
men may become depositors and lenders of money. They receive money,
give credit or drafts, and then drafts circulate. A function which does
not properly belong to the business o f banking, to which we have now
especial reference, is that o f issuing notes as money, and the obscurity
which hangs around the subject results from the combination which takes
place in the banks o f these three fu n c tio n s : deposit, discount, and issuing
of money. It is as issuers o f paper money that the banks are chiefly open
to criticism. Let us consider them as makers o f money. This is a high
and delicate prerogative. W e have melancholy evidence of the blight
which its abuse may leave :
1st. In its effects in multiplying contracts which in their effects prove
fraudulent and oppressive, since, being made on long terms, they are made
in an inflated and must be met in a collapsed currency.
2d. In substituting a system o f gambling transfer o f property in place
of such exchanges as grow out o f a healthy and productive system o f in­
dustry.
3d. In demoralizing men, and thus unfitting them for being useful pro­
ducers hereafter.
V O L . L V .-----N O . I I I .




12

[September

Money and Banks.

170

4th. In creating, when reaction comes, obstructions that block up all
the channels o f business, suspend exchange, and, with exchange, the pro­
duction to which it gives rise.
5th. In creating artiScial prices that tempt to excessive production at
home and unlimited importations from abroad, while it prevents the ex­
portation o f our own products.
How guard against these evils and yet retain the advantages o f the
proper use o f bank-notes ?
1st. There should be only one issuer o f bank-notes; and a complete
separation between the issuing and the banking business should be effected.
2d. The issues must be limited by the amount o f gold and silver in the
issuing department.
3d. The proceedings o f the banks must be open.
4th. There must be a personal unlimited responsibility.
W ith these public confidence can be maintained, as we shall try to ex­
plain in the following essay. Being maintained, all the advantages of
credit can be secured, and yet the terrible penalty which we have had to
pay not be incurred ;
P L A N F O R R E G U L A T IN G

TH E ISSU E O F B A N K -N O T E S , W IT H R E F E R E N C E TO SIR

ROBERT

PEEL’ S BAN K

ACT

OF

1844.

It is sufficiently known that all the dangers and evils o f bank-notes pro­
duced by the continual expansions and contractions, originate from the
over-issue ; that is, issuing to a greater amount than the capability of
ever-ready redemption. A ll the evils o f paper money are therefore to be
cured in this one common point— the issue. In order that the check
against those evils which we wish to avoid before they take place should
be preventive rather than corrective, the checking remedy must exist in
the nature o f the issue itself. A sure check can only exist if the selfinterest o f those issuing the paper obliges them always carefully to confine
their issues below their capabilities o f redeeming, or, if the issue is not
productive, o f gain.
There is no necessary connection between the issuing o f notes and the
business o f banking. The two operations, although clearly distinct and
different, are by those who find their account in a vicious system sedulously
sought to be confounded.
The issue o f notes for circulation, like the coining o f money, properly
belongs to the supreme authority o f the State, and should, like the coinage,
be entrusted and confined to a single issuer— not granted to a number of
com peting banks. Moreover, no profits should be allowed to accrue from
the issue o f notes, since this at once begets the tendency to over-issue,
through the desire for, and opportunity of, making gain.
Cherishing these views, I proposed the following “ Method for correct­
ing the Currency” in an article published in the January number, 1842,
o f H u n t ’ s M e r c h a n t s ’ M a g a z i n e a n d C o m m e r c i a l R e v i e w , in New York,
vol. V I., p. 65 ; I said there : “ Upon the supposition that it be correct for
Congress to direct the issue o f paper, the following plan for the establish­
ment o f a national paper currency might, perhaps, be practicable:
“ Let a certain number o f men o f the highest respectability, who are
-entirely independent o f the Government, but under its control, and who




Money and Banks.

m

shall have no interest in the quantity issued, be appointed to issue a cer­
tain amount o f paper fixed by law, depending for its basis upon the credit
of the Government and a fund derived from part o f the proceeds o f the
public lands, by which, if necessary, it may be redeemed. These persons
are to do no discounting— merely to make the issue. In order to avoid
the danger of an over-issue, the amount should be decreed by Congress,
always carefully confining its issues below capabilities o f redeeming, at all
times, as well in the urgent necessities o f war as in a state o f peace and
prosperity. The reputation o f a national paper will depend upon the
caution never to over issue, and the promptitude o f redeeming. Although
the voice o f speculators continually demands an abundant issue, yet Congr<ss has in justice to restrict the issue within such limits as thereby to
protect its own reputation against dishonor and distrust, and individual
property and contracts against unjust fluctuations o f value. It must act
on the principle that no one can honestly transfer to another, by paper, the
power o f purchasing which he himself does not possess.
“ The men who make the issue should have no interest whatever in the
quantity o f paper issued; upon this condition only can we hope that pru­
dence and a due regard to their own and the country’s honor might
operate as a check against an over issue.
“ Those men, thus appointed merely to make the issue, would not form
a bank, since that one act exhausts the power placed in their hands, and
no discounting could be done by them. By keeping the issuing and dis­
counting business entirely separate, we avoid the danger o f continual ex­
pansions and contractions, which, as we know by the unhappy experience
of late years, has proved very disastrous to all solid business, to the just
fulfilment o f contracts, and to those persons who live on fixed salaries.
“ Those who are appointed for making the issue should make a full register
of it, to be printed in the newspapers, which should specify th i number o f
bills o f each denomination issued, each bill o f each denomination being
numbered in order, 1, 2, 3, &c., so that by this means an over-issue could
be discovered by any one holding any o f the bills o f the over-issue. T o
avoid the danger o f their issuing duplicates, all bills issued should be coun­
tersigned by the members o f the issuing body and engrossed in their books.
“ A part o f the proceeds o f the public lands would have formed an everready fund for redemption, sustrined, moreover, by the pledged credit o f
the United States; and, since no expansion or contraction o f paper could
exist, this would stand so safely stable in value that only in the most ex­
treme cases o f danger to the country a redemption would be required;
and such cases are rare in the United States, which are so seldom threat­
ened with war. B j' carefully limiting beforehand the amount within the
means o f ever-ready redemption, we shall solve that great problem with
respect to a paper currency, which is, to discover that check whereby that
evil which we wish to avoid may be arrested before it takes place.
“ The danger o f over-issue is best avoided by making a gradual issue.
This paper would be the much-desired medium o f exchange throughout
the whole United States.”
These views will be found to coincide with those which Sir R obert P eel
at a later period (M ay 6, 1844 ) proposed in the British House o f Com ­
mons, as the basis o f a new system o f banking. I give, for the sake o f
Comparison, an extract from his speech,— hardly thinking it necessary to




1T2

Money and Banks.

[September,

add that I do not suppose that statesmen knew o f my article : I must,
however, confess my gratification that the ideas o f so eminent a man as
Sir Robert Peel upon the subject o f banking should correspond so fully
with those I had previously published.
I have recently read the excellent treatise on “ Metallic and Paper
Money and Banks,” by J. R . McCulloch, Esq., contributed to the “ Ency­
clopaedia Britannica,” in the year 1858, and I have found there the state­
ment (p. 4G2) “ that in dealing with the Bank o f England, Sir R ibert
Peel adopted the proposal, previously made by Lord Overstone, for effect­
ing a complete separation between the issuing and banking departments
o f that establishment, and giving the directors full liberty to manage the
hitter at discretion, while they should have no power whatever over the
other. It is probable that Sir Robert Peel profited by the suggestion of
Lord Overstone referred to, since the latter made his proposal in his evi­
dence before a committee of the House o f Commons in the year 1840, as
Mr. McCulloch states.*
But Lord Overstone’s ideas were utterly unknown to me when in
America, and, indeed, since my return to Germany, until I found them
recently in this treatise o f Mr. McCulloch. I arrived at my conclusions in
1842, through studying the defects o f the American banking systems dur­
ing my residence at New Y o r k ; and it is, I repeat, in the highest degree
interesting and satisfactory to me that such eminent men as Sir Robert
Peel and Lord Overstone arrived through their investigations in England
at the same result. This coincidence o f conclusions clrawn from similar
facts and observations in different countries, is certainly so strong in favor

* Mr. McCulloch says in the above-cited “ Treatise on M etallic and Paper Money
and Bunks,” p. 462 : “ It is right to state, that except in so far as lie no doubt profited
by the suggestion referred to, the measures adopted by Sir R obert Peel in 1844 and
1845 were entirely his own. And they will continue to be enduring monuments of
the depth and clearness o f his views, and o f his administrative ability. This is a
point in regard to which the evidence o f Lord Overstone is quite d ecisive; and it is
difficult to say whether that evidence redounds more to his lordship’s credit, or to
that o f the illustrious statesman whose claims to the gratitude o f the country as the
founder o f a sound system o f currency he has so generously and successfully vindi­
cated. ‘ I,’ said Lord Overstone, ‘ had no connection, political or social, with Sir
Robert Peel. I never exchanged one word upon the subject of this A ct with Sir
R obert Peel in m y life, neither directly nor indirectly. I knew nothing whatever of
the provisions o f this A ct until they were laid before the public, aDd 1 am happy to
state that, because I believe that what little weight may attach to my unbiassed con­
viction o f the high merits o f this A ct, aud the service which it has rendered to the
public, may be diminished by the impression that [ have something o f personal vanity
in this matter. I have no feeling whatever o f the kind. The A ct is entirely, so far
as I know, the act o f Sir Robert Peel, and the immoital gratitude o f the country is
due to him for the service rendered to it by the passing o f that A ct. H e baa never
been properly appreciated, but year by year the character o f that statesman upon
this subject will be appreciated. By the A ct o f 1819, Sir R obert Peel placed the
monetary system o f the country -upon an honest foundation, and he was exposed to
great obloquy for having so done. By the Act o f 1814 he has obtained ample and
sufficient security that that honest fom dation o f our monetary system shall be ef­
fectually and permanently maintained. And no description can be written on bis
statue so honorable as that he restored our money to its just value in 1819, and
secured for us the means o f maintaining that ju st value ia 1844. Honor be to bia
nasue.’ ”— Min. o f Evidence, p. 178, Committee o f 1857.




1866J

M onty and Banks.

178

o f the truth o f our common views as to render them in some degree worthy
the attention o f the reader.
The extract o f Sir Robert Peel’s speech, which, as I said above, I quote
for comparison’s sake, is the follow ing:
Sir Robert Peel spoke (Mav 6th, 1 8 4 4 ):
“ The practical measure which I have this night to propose, as the plan
o f Her Majesty’s government, I shall now proceed to state. It appears to
me to be o f great importance that we should have one bank o f issue in
the metropolis— the Bank to continue to the end o f its charter, but the
business o f the bank to be divided into two separate and distinct departr
merits ; the bank o f issue to be separated from the general banking busi­
ness, with different books, accounts, and officers. That to the bank of
issue shall be transferred the whole amount o f bullion in the Bank of
England. That the issue hereafter shall be regulated upon two principles
— first, upon the definite amount o f securities in its possession ; and
secondly, upon the amount o f bullion in its possessien. That beyond this
it shall have no power to issue its notes. The amount o f fixed securities
on which we propose the bank should issue notes, is £ 1 4 ,0 0 0 ,0 0 0 ; the
whole o f the remainder o f the circulation to be issued exclusively on the
foundation o f bullion, which shall be issued in exchange for coin. I pro­
pose that there shad be a periodica! and a complete publication of the
banking transactions made to the government. I would propose to enact
by law that there shall be returned to the government weekly accounts o f
the issues o f notes, the amount of bullion in the bank, and an account o f
the fluctuations in the amount o f bullion, and the amount o f deposits. In
short, that such accounts shall be returned in reference to every transac­
tion in the Bank o f England in the department o f issue, and in that o f
banking; and that the government shall publish unreservedly and weekly
the whole amount. W e propose that on every issue that takes place beyond
the amount o f £14,000,000, the profit o f it shall belong exclusively to the
state. The bank shall not be allowed to issue bank notes for more than
£14.000,000, without transferring the entire net profit o f that portion of
its issues to the use o f the government. It is necessary to introduce some
controlling check upon the bank.”
The experience o f late years has led me to some modifications o f the
plan, which I originally proposed in Am erica, as above stated, for the
regulation o f the issue o f bank-notes, and it now assumes the following
torn]:
1st. As the losses to the public from over-issue o f bank-notes far more
than counterbalance any private gains, the issue o f such paper shall be
productive o f no pecuniary advantage whatever to the issuer.
2d. The issue o f bank-notes shall be strictly separated from the busi­
ness of banking, as originally proposed : and
3d. This issue o f notes shall be placed in the hands o f a Board o f
Issue, formed o f men of the highest character and respectability, able to
give ample bonds and security for the faithful discharge o f their trust,
entirely independent both o f the government and o f the people, yet under
the immediate control o f Parliament or Congress.
4th. The single basis o f the issues by this Board shall be in all cases
gold and silver, in coin or in bullion actually deposited.
5th. The amount of the issues shall be determined and fixed by the




m

Money and Banks.

[September,

amount o f coin and bullion deposited; the value o f the notes not to exceed
in any case the value o f the deposits, so that they may be at any time re­
deemed on demand. Thus the danger of over-issue is necessarily reduced
to a nullity, since bank-notes would simply be a representative o f values
in the precious metals actually deposited in the banks— the amount of
notes consequently varying with the amount of gold and silver on hand.*
The real point o f difference between my present and my former plan is
this, that the basis o f the issues shall be bullion alone ; that (analogous
to the Bank A ct o f Sir Robert Peel, o f 1844) the so-called securities of
State shall not i n any case take the place o f bullion, and be made the basis
o f an issue o f bank paper. It seems clear that the debts o f the State
should not be a foundation for new debts o f banks. The issue and circula­
tion o f paper money can never be secure until the idea o f making a
pecuniary profit out o f this issue be quite given up. The only object
which can o f right be aimed at in its issue is the convenience o f the
pu blic; the profit o f the issuer is nothing when compared with the ad­
vantage that the public would gain by perfect security in the value o f the
paper in circulation.
Although it may appear daring, I cannot om it to express an opinion
contrary to the views o f Mr. McCulloch and Sir Robert Peel, though with
all due and sincere regard for the high authority o f these eminent m e n :
viz., that the ability o f the Bank o f England at all times to redeem its
notes in ready money, was not lessened by the circumstance, that its issues
to the amount o f £ 1 4 000,000 are not protected by deposits o f gold and
silver, but merely by £11,01 5,00 0 of government securities, which it has
to claim from the public, and £3 ,000 ,0 00 in exchequer bills. It appears
to me that in this arrangement too much stress is laid upon the gain, and
less on the security, the securities bearing three per cent, interest, and
affording at the same time another profit in the issue o f the notes, by
which the lucrative banking business is carried on, without the actual use
o f hard money. Sir Robert Peel said on this subject in the speech above
qu oted: I have said that we intend to insist on the Bank o f England
being the department o f issue— that the amount of bank-notes shall be
regulated partly in a fixed amount o f security and the rest upon bullion;
the government propose that the amount of the security shall be £1 4,00 0,000.
W e propose to continue (as I see no advantage which could arise
from making a change) the debt due by the government to the Bank of
England— we propose to continue the existing loan. I know no advantage
which would accrue from the government paying off this debt, looking to
the Bank as the central bank of issue. W e propose that the sum o f
£ 1 1,000,000 due by the government, shall be considered as part o f the
security upon which the issues shall be effected. There will then remain
£3,000,000 of exchequer bills, over which the Bank will have a control.”
Mr. McCulloch says on this point, page 403 o f his treatise : “ The notes

# Tfce total cost o f issue o f bank-notes by the Bank o f England is about £1(10,000.
But tbe I ank o f England conducts its issues upon a too liberal scale. Probably,
however, the Bank mighc find means, without injury to the public, o f re issuing her
nolee, or o f otherwise reducing the cost o f their circulation. The expense should be
borne by the public.




1866]

Money and Banks.

175

o f the Bank o f England in circulation for some years previously to 1844
rarely amounted to twenty or sunk so low as sixteen millions.
And such
being the case, Sir Robert Peel was justified in assuming that the circula­
tion o f the Bank eould not, in any ordinary condition o f society, or under
any mere commercial vicissitudes, be reduced below fourteen millions. An
the Act o f 1844 allows the Bank to issue this amount upon securities, of
which the £11,015,000 she h is lent to the public is the most important
item.” A n d page 4 6 7 : “ There is not the smallest chance that, under
ordinary circumstances, or in the absence o f internal com m otion or panic,
the issue o f bank-notes will ever be reduced so low as £1 4,00 0,00 0 ; and
it is therefore quite enough for every purpose o f security, that the notes
above that lim it should be issued on deposits o f bullion.”
Mr. McCulloch argues that under ordinary circumstances tho security is
quite enough, but he can hardly deny that under extraordinary circum­
stances it might not be sufficient, for he himself acknowledges in his
account o f the suspensions o f the Bank Act, in the years 1847 and 1857,
to how small an amount the deposits o f the Bank o f England decreased
during those bank and commercial crises.* H : ought, therefore, to acknow­
ledge, that under uncommon circumstances those securities are hardly
sufficient. It seems that Sir Robert Peel wished to change as little as
possible in the existing arrangements, and that this is the excuse for this
measure. For the following is to be remarked : As the issue o f notes to
the amount o f £14,000,000 is based not upon ready money, but upon the
debt due by the government to the Bank, there is immediate danger both
to the Bank and to the merchants, whenever in consequence o f bad har­
vests, great importations, speculations or wars, a considerable part o f the
money and bullion is drawn from the Bank and sent abroad. In conse­
quence o f bad harvests, for instance, the amount o f money in the Bank of
England during the eighteen months from April, 1838, to October, 1839,
sank from £10,126,000 to £2,525,000.
And yet but a small amount in
notes was at that time withdrawn from circulation.
BASK

Of

ENGLAN D.

C ircu lation .

1838.
“
“
1839.
1840.

A pril.............................................................................
October ......................................................................
D ecem ber......................................................
O ctober..............................................
“

£18.987,ODD
19.259,000
18,462,000
17,612,000
17,231,000

CaBh on han d

£

10, 126,000

9,437,000
9,363,000
2,525,000
4,145,000

In such condition, with so little cash capital in the bank, the £1 4 ,0 0 0 ,000 public securities are o f little use, except in the case o f the exchequer
bills, for the purpose o f exchanging readily notes for hard money. Mr.
McCulloch himself mentions in his account o f the suspension o f the Bank
Act in the year 1857, the insufficient sum o f money, viz.: £1 ,462 ,1 53 ,f
which the bank then possessed, “ whilst it was the general belief, that this
inadequate reserve would be forthwith either much reduced or wholly
swallowed u p ;’ ’ and he farther adds that the business of the bank has
been conducted o f late years with great prudence. N ow as the circula-

* Mr. McCulloch’s Treatise above quoted, page 468.




f Ibid.

176

Money and Banks.

[September,

tion o f notes is in a sound state only when each note can be redeemed in
hard money upon demand ; and since the bank did everything in its
power, according to the testimony o f Mr. McCulloch, to act up to this
principle o f sound banking, it follows that it was out o f her power— that
that, in those crises, she could not redeem her notes by using those
£1 1,00 0,00 0 o f Government indebtedness for that purpose. Such securi­
ties are not available in times o f danger and necessity— the bank can only
redeem her circulation in coin, bullion, exchequer bills, and by taking
them in payment for bills discounted and bills of exchange.
I f the plan above suggested— that no notes should be issued on securi­
ties, and that no profits should be made by the issue (the cost o f which
m igh t be paid by the public)— should be adopted and carried out, no
further limitation by law would be necessary, and in all other respects the
greatest freedom in banking, or, in other words, the freest competition in
the real banking business, might be the result.
Suppose now all notes are withdrawn from circulation save these actual
representatives o f cash or bullion, which are issued at public cost, without
profit to the issuers, simply for public convenience. The notes are neces­
sarily equal in value to coin, because they actually represent it and are at
any time redeemable in it; they are better than bills o f exchange, because
they require no endorsement, and the holder subjects himself to no respon­
sibility for their goodness ; they are at once for an entire nation, what the
girobanks are for their immediate neighborhoods ; they being more con­
venient to use than coin or bullion would generally be preferred; and
hence, would not often be presented for redemption.
In short, the public would only be a gainer, for all danger o f a “ money
crisis” would be at once removed. Commercial crises would, o f course,
still happen from time to time, but with less violence, since overtrading
and the spirit o f wild speculation could no longer be stimulated by banks
o f issue.
The Board o f Issue would grant to all banks its notes in exchange for
coin or bullion, to be issued in their free banking business, just as is now
the case in the department o f issue o f the Bank o f England.
Commerce, in fact all business, would be facilitated, and yet the greatest
safety secured— a duty which the Government owes to the people. It
would be a safeguard against great fluctuations in prices, certainly against
the high prices, which are merely artificial, and the work o f speculators,
induced thereto by the facility with which they can at times draw funds
from the banks as at present constituted. In other words, the consumer
would have secured to him a greater power o f purchasing,* that is, he
would be wealthier.
Mr. McCulloch and others lay much stress upon the fact, that the su b­
stitution of notes for coins is a device for the economising o f currency, and
a source o f profit to the issuers,f but there is not so much saved by this
device as is lost from time to time to the people by repeated bank crises.
The profit upon the issue o f notes is moreover only a profit to the bank­

* See Say, Cours com plet d’ecnomie politique pratique. Tome II. cap 4.
f J. It. McCulloch, Esq. A Treatise on Metallic and Paper Money and Banks
pages 44t> and 473.
<




1866]

Money and Banks.

177

ing houses that issue them, the public does not participate in it. The
banks give notes, which cost nothing but the expense o f manufacturing,
to the public in exchange for real values which it (the public) has first to
produce by its industry. The public thus gives real values for mere pieces
of paper, and farther more iiicurs the risk o f loss, being without sufficient
security in cases o f bank crises. As to the economy o f the present system,
it depends but slightly upon the issues o f n o te s; on the other hand,
it is effected mainly by bills o f exchange, o f which, in the year 1846, as I
was assured by Mr. Heath, then Governor o f the Bank o f England, nearly
£300,000,000 were in course, by the daily exchange o f bills to the amount
of several millions at the Clearing House, and by the transfer o f accounts
on the books o f the banks.*
But though the economical advantages o f notes be all their friends sup­
pose, what are they to the disastrous results caused by over-issues, in the
grand explosions, which surely follow the overtrading, and the spirit
of hazardous speculation, which they beget?
On this point, I refer the
reader to the account o f the crises o f 1 7 4 5 ,1 7 9 2 -3 ,1 7 9 /, 1814-6, 1825 6,
1837, 1847, and 1857, as contained in Mr. M cCulloch’s treatise.] The
reader will see, by reference to a former treatise o f my own,] that the
losses in Am erica during the crisis o f 1837, were estimated at $200,000,-

000.
If we consider the extent o f the American crisis o f 1857, it is probable,
that the losses have been at least o f an equal amount. A New Y ork
paper counts the losses in the short period alone from the 1st o f August
until the 20th o f October, 1857, at $150,000,000. The London papers o f
November 6th o f that year say :— “ The advices which arrived with the
last steamer reach to the 24th o f October.
Nine hundred bankruptcies,
with a loss o f ninety millions o f dollars, have become known.” A later
communication from New Y ork o f January 12th, printed in the Schledsche
Zetung oi February 4, 1858, said that the United Slates had, during
the crisis o f 1857, about 5,120 bankruptcies, with debts to the amount
of $299,811,000, o f which probably the half would be paid. Although
these accounts are inexact, still they show that the loss to the public was
tremendous.
New Y ork papers o f November, 1857, stated that about
50,000 persons in that city were thrown out of employment, and had form­
ed dangerous bank mobs, and that everywhere thousands o f laborers were
idle.
For these reasons, Mr. Buchanan, the President o f the United States,
condemned the American banking system in his message to Congress o f
the 8th o f December, 1857, and said, that the first duty which banks owe
to the public is to keep in their vaults a sufficient amount o f gold and

* I take this opportunity o f acknowledging m y obligations to Mr. Heath, then
Governor o f the Bank o f England, and to * r. VV. D. Haggard, Principal of the Bul­
lion Department, to whom I was recommended by Baron Bunsen, then Prussian A m ­
bassador, for their kindness in showing me the baub.
f J. R. McCulloch, Esq. A Treatise on M etallic and Paper Money and Banks,
pages 456, 459, 460, 4 6 2 ,4 6 7 , 491, and 492.
} Die neuere Entwickelung des Bankwesensin Deutchland, mit Hinweis auf dessen
Votbilder in England, Schottland, und Nord Amerika, von J. L . Tellkam pf, 1856.




178

Money and Banks.

[September,

silver to insure the convertibility o f their notes into coin at all times and
under all circumstances.
The losses further, which the public in England has suffered during the
last crisis o f 1857, are calculated by the Times o f the 21st to th< 24th of
Dec., o f 1857, a paper usually well informed 4in m oney matters, at the
enormous sum o f £50,000,000. I f we compare herewith the profit, which,
for instance, the public makes by the issue o f notes on the basis o f the
£14,00 0,00 0 o f Government securities or debts, and which Sir Robert
Peel calculated yearly at about £ 1 00 ,0 00 in his speech o f M ay 6, 1844,
and which Mr. McCulloch estimates at £127,000 yearly, page 207, and
which may be considered as a gain to the public, all must confess that it
is as nothing in comparison with the enormous losses, which the public
has suffered by the bank crisis which occur almost every ten years. W e
do not know the gain which the other banks make by the issue o f notes,
but the public makes evidently, and at all events, a losing business of
this issue on the basis o f government securities, gaining annually £ 100,000
to £127,000, that is, about a million pounds in ten years and losing £50,000,000 thereby in the same time. The so called econom izing by means
o f this paper currency leads consequently to the very opposite, and
appears, accurately viewed, not as a profit, but as a decided disadvantage.
Mr. McCulloch is very right in saying (in the same Treatise, page 4 4 9 ):
“ A paper currency is not in a sound or wholesome state, unless— 1st,
each particular note or parcel o f such currency be paid immediately on
dem and; and 2d, unless the whole currency vary in amount and value
exactly as a metallic currency would do were the paper currency with­
drawn and coins substituted in its stead. The last condition is quite as
indispensable to the existence o f a well established currency as the for­
m er; and it is one that cannot be realised otherwise than by confining
the supply o f paper to a single source.
“ The issues of paper money should always be determined by the
exchange, or rather by the influx and eflux o f bullion, increasing when
the latter is flowing into a country, and decreasing when it is being ex­
ported. And when the issue o f paper is in the hands o f a single body, a
regard to its interests will make it regulate its amount with reference to
this principle. But when the power to issue notes is vested in different
bodies, some of which may be little, if at all, affected by variations o f the ex­
change, this is no longer the case. And instances have repeatedly occurred
o f the country banks having increased their issues wl en the exchange
was unfavorable and the currency redundant. Hence the plan of exacting
securities is doubly defective, inasmuch as it neither insures the immediate
conversion of notes into coin, nor prevents their over issue.”
But if, according to the view o f Mr. McCulloch, the Bank of England
shall limit the i-sue and circulation of notes, as soon as it is apparent that
exchange is against the country, or rather that bullion is leaving it, I ven­
ture to draw attention to the fact that the cause o f the efflux o f bullion,
v iz.: the overtrading stimulated by abundant issues, and the consequent
imports of goods, has happened in a previous period o f time, which later
continues to exercise its influence, and that the management o f the Bank
is at a later period not able to remove this previous cause. The abundant
issue o f paper having a tendency to raise the prise o f goods, the latter
would consequently be imported, and sold at high prices ; and specie would




1866]

Money and Banks.

179

be demanded for the paper, in order to be sent out o f the country, and this
would make a constant draft on the banks. It would, therefore, be happy
if there could never exist a too abundant issue o f notes. If mv plan were
adopted, and notes should only be issued in exchange for the precious
metals, an over abundance or over issue could not take place, as the issue
would regulate itself according to the known laws o f demand and supply.
If much gold was demanded, this would be exchanged for notes, and vice
versa ; and there would always be as much gold in the vaults of the issu­
ing institution as notes in circulation, and there would never be any occa­
sion to suspend payment or to suspend any bank a c t ; and all calamities
connected with those suspensions would be avoided.
It seems to be an advantage o f this plan that the issue would regulate
itself by the exchange, whilst Mr. McCulloch wishes that the issues should
be determined by the exchange by means o f the Bank o f England ; b ” t it
ought not to be overlooked that a great discretionary power, not controlled
by any check, is hereby put into the hands of the managers o f the bank
to expand or to contract the issue, and consequently to exercise a great in­
fluence on the prices o f all goods, a power full o f temptation to use it for
the interest o f the issuer in order to buy and to sell with a sure profit, and
not to use it for the general interest. This danger is fully avoided by my
proposal.
Differing as I do on these points from the views o f Mr. McCulloch, I
state that these are the only points o f controversy, and that I have been
happy to find that bis views expressed in his treatise agree in most essen­
tial questions with those which I have published in my treatise on “ Die
neuere Entwickelung des Bankwesens,” in the year 1856, and that this
was the reason why I translated his treatise o f 1858 into German. (The
translation has just been published at Leipzig.) I hope that Mr. McCul­
loch will regard my frank avowal o f dissent on some questions as a testi­
mony o f the high esteem I feel towards him, being persuaded that so dis­
tinguished a gentleman and scholar will excuse the dissenting opinion of
one who professes to be merely in search o f truth.
Looking back to my proposed plan, I must openly say that I do not ex­
pect that this arrangement, which is the most convenient and the least
dangerous for the public, will soon be m a le ; but it is rather probable that
we must still learn from very serious experience before the conclusion will
be adopted that the gain from issue must be given up, which, as experience
shows, is the cause of all evil and of all losses o f the public. But I hope
that perhaps at some later period, at a new revision o f the Bank A ct in
England, these views may receive some attention.
Formerly it was often asserted that among the conditions upon which
the creation o f the currency could be granted was the unlimited individual
liability o f the issuing parties; and it is known that upon this condition
the important function o f the issue o f notes has been committed to the
banks o f Scotland.
Mr. Logan says in his work, “ The Scottish Banker,” p. 6 : “ A royal
charter cannot in principle confer privileges at variance with the laws o f
the land, which ‘ trading under a limited responsibility,’ to all intents and
purposes, is. An exemption from the ordinary liability o f traders would
expose the public to loss, in order that a fe-v speculators might reap a
benefit.” And Mr. McCulloch states the facts that “ in 1793 and in 182 5,




180

Money and Banks.

[September)

when so many o f the English country banks were swept off, there was not
a single establishment in Scotland that gave way.”
W e may account for
much o f this stability to the unlimited responsibility o f the shareholders or
partners o f the Scottish banks, as furnishing to noteholders and to de­
positors increased protection against danger o f ultimate loss. The expe­
rience o f the Scottish banks is conclusive as to the beneficial nature o f the
results springing from the practical application o f the principle o f the un­
restrained liability o f individuals, as furnishing to the public a very strong
guarantee against fraud; but the principle affords little or no security
against those alternate expansions and contractions in the paper currency
o f a country, and those fluctuations in its real value or purchasing power
which tend to give to all commercial undertakings a gam bling character;
but which are inseparable from the issue, by trading associations, o f paper
substitutes for metallic money. The only infallible test o f the soundness
of any scheme o f paper issues is to be found in the identity o f the pheno­
mena with those which would take place with a currency purely and ex­
clusively metallic, and it is as issuers o f paper money that the Scotch banks
are chiefly open to criticism. In times o f prosperity they push out their
notes and credits to an undue extent, and are consequently compelled to
diminish them as violently when circumstances alter,— thus inflicting on
the public oscillations in the currency much more violent than could oc­
cur with a metallic circulation, or with paper regulated on sound princi­
ples. It is also notorious, and not denied, that in Scotland the use of
gold is almost unknown. In the recent crisis, two o f the principal Scotch
banks, the Western Bank and the City o f Glasgow Bank, were compelled
to stop payment, and their management displayed anything but ordinary
skill and prudence. The suspension o f the offending banks led to a run
on some o f the other banks. Large amounts o f gold were carried from
the Bank o f England to Scotland, and this led to the suspension ot the
Act o f 1844 in the year 1857.
these facts show that the Scotch banking
system cannot stand without the support o f England, and that its issuing
power is not without danger to the public.
But the American banks are still less fit to be entrusted with the power
o f issuing notes, which they actually possess. The Scotch banks are by
far preferable to them. In order to show the truth o f what has been said
by examples, I shall compare the fundamental principle o f the Scotch
with the American banking system. The decided superiority of the Scotch
banking by unincorporated companies— each member of which is respons­
ible, in his whole personal and real estate, for all the debts contracted by
the company, consequently for the whole o f paper issued— consists in this
fact, that according to this system, self-interest operates as the desired
check, and compels the bankers to confine their issues within tbe limits of
ever-ready redemption, so as to avoid ruin. The interest o f this system is
a careful confinement or curtailment o f the issue ; the interest of American
banking, which has the privilege o f trading under a limited responsibility,
is the utmost expansion o f the issue, or, in other words, the over-issue—
that very danger we wish to avoid; it contains in its principles, therefore,
the germ o f its destruction. The present American banks, as every one
kuows, issue in competition with other banks as much paper as possible, in
order to make large profits during the time o f specie payment, as well as
during the time o f suspension, when they also gain by the discounting of




1866]

Money and Banks.

181

their notes done by their agents, since no evil accrues to themselves by
their suspension, being by favor above the law, like sovereign princes.
Over issue and its too well-known consequences follow, therefore, neces­
sarily from the very nature o f this system ; and, since such is the case,
they will ever follow, just so long as this system exists, no matter what
legislative provisions may be made concerning th em .*
In the present state o f affairs in America, when banks that have made
large dividends suspend specie payments, they do nothing to alleviate, but
on the contrary break down their debtors, and they buy up their notes by
agents at a discount; and thus continue to profit while the people lose by
their suspensions. Paper money, it is asserted, is a means o f creating
capital and o f saving labor. I f the labor performed in order to preserve
the credit o f the paper had been bestowed upon the digging o f the ore and
coining gold and silver, we should have a sufficient amount o f a real, in the
place ol the present imaginary, exchanging medium, which is nothing but
the representation o f a quantity o f goods in the country under bond and
mortgage. Banks represent and circulate, but they do not create capital,
and they act as stimulus. Justice is, in fact, perverted by the present
banking system. The morality o f the people, which is worth more than
gold, is endangered by the temptation o f spending their earnings imme­
diately, so long as this money, which seems to have no permanent value,
is thus thrust into the hands o f the poor laborers.
There is this difficulty in the way o f a reformation: All stockholders,
whatever may be the amount o f their stock, receive from their present in­
vestments greater profits than they would do under a safer system. They
would, therefore, prefer the old system until compelled by the people to
adopt a new one. The crisis will soon arrive when all paper money wil3
be refused except at the specie value, and the people will unite in demand­
ing a nearer approximation to the specie standard. N o legislative enact­
ments can afford an adequate remedy for the evils resulting from incorpo­
rated paper money banks; they cannot, surely, be sustained if the people
will not take their notes for anything but specie. The poor would be
much more happy with a more steady currency, as the wages o f common
labor adapt themselves more slowly to the changes which happen in the
value o f money than the price o f any other species of com m odity. More­
over, the bills o f broken banks are m ore apt to get into the hands o f these
unhappy people, owing to their ignorance o f the value o f paper and the
condition o f banks, and owing, also, to the fact that many heartless and
cunning employers, who belong to the better educated class, who have
the means i f knowing these things, pay their poor laborers iu the money

* I here speak only o f the comparative value o f the systems, neither for nor against
bankers and stockholders; what regards the latter— they, in some o f the Eastern
States, as New Y ork, Massachusetts, iSsc., deserve for their prudence, during the last
years o f difficulties, the highest praise ; it is the system itself which prevails through­
out the States that is to be reformed. I f truth should clash against the interest o f
some, they must blame truth, not m e ; or rather they must reconcile their interests
with the true interests o f the country. Truth and justice have always been, through­
out all history, and seem ever to be, at war with the interests o f those men who per­
vert the true condition o f society to their advantage, against the interest o f weaker
people.




182

Money and Banks.

[September,

o f these banks, which they know beforehand are worth just nothing. If
we put the question whether it would be ever possible to substitute in the
United States for their 1,400 banks o f issue one single independent insti­
tution only for the issue o f notes, we should feel inclined to negative this
question, for it seems improbable that ever such a change could be made ;
but still the following reasons speak for such a plan :
Strictly and judicially speaking, all the notes in circulation in the U ni­
ted States of America are illegal, void, and o f no value, since the Consti­
tution o f the United States clearly declares them to be such ; the people
could therefore strike upon the simple expedient— as the only true regu­
lator of their currency— never to receive or to pay bank notes.
The most important considerati n with respect to the issue o f notes in
the United States would be its constitutionality.
According to the Constitution, Art. I, Sec. 8, Congress has no right to
create a bank of issue and discount; and this is very wise, for in a coun­
try like this, where the acquisition of wealth is the prime object o f the ma­
jority o f the people, and where, notwithstanding, there are but few individ­
uals who possess sufficient to check or counteract the evil influence o f a
gigantic bank, money power is the greatest and most difficult o f all to
guard against; such a power, emanating from a United States Bank,
would be the greatest power in the country, and would still have no con­
stitutional check, and would therefore be greatly abused.
Instead o f it the question is, whether it is possible for the General G ov­
ernment to use the power granted to it ir. the Constitution, Art. I, Sec. 8,
5, which is as follows, viz : “ The Congress shall have power to coin money,
regulate the value thereof,” &o. This gives to Congress the whole power
to regulate the standard of value o f money. It is still more evident that
it was the intention o f the framers o f the Constitution that Congress alone
should have the sole power, from Art. I, Sec. 10, where it is directly de­
nied to the States in these words : “ N o State shall coin money, emit bills
o f credit, or make anything but gold and silver a tender in payment of
debts.” Consequently, there shall either be no issue o f notes at all, or
it shall be under the sole control o f Congress, but certainly without any
discounting, as a bank would not be constitutional. In this case, Congress
shall be confined to the letter o f the article of the Constitution, and only
possess the power o f coining and regulating the standard thereof. This
opinion appears to be true, since the currency and the value o f it is
governed by the laws o f exchange throughout the world. N o govern­
ment can regulate the currency in any other way than to fix a stand­
ard ; and this can be best done with specie. As shown above, the States
have no control over, nor any right to manufacture notes. For it is a
known and settled principle that no one can transfer to another a right
which he does not himself possess. “ N em o p lu s ju r is in alium trans­
f e r s potest quarn quad ipse habet." Since no State can coin money, or
emit bills o f credit (under which paper money is included), can they make
anything but gold and silver a tender in payment o f debts? N o State
has itself a right to make money, no matter whether gold, silver, or any
other material, and therefore it cannot transfer this right to banks by
charter, wherefore these charters are wholly unconstitutional. Upon the
supposition, however, that it be correct for Congress to control the issue
o f notes, the plan proposed by me might perhaps be practicable. Con­




1866]

Money and Banks.

183

gress alone would have the right and the power to prescribe how the is­
sue of notes might be made by one issuing body, whilst all the charters of
the State banks and their notes are wholly unconstitutional, and cou 1
declared to be so. In order to avoid a crisis, their notes ought to be g .- d ually exchanged for the precious metals.
W ith these remarks I conclude the discussion o f the main object o f mv
article : I merely append some observations on another important subject
intimately connected with the credit system, viz., the connection existing
between the paper money system and the tariff.
If, by an over-issue of
paper money, in such countries as intend to use the tariff as a protection
of their home industry, prices rise above their customary level, merchants
will take advantage o f it, on finding that they can import abundantly with
profit, over and above the payment o f duties, from foreign countries where
no artificial paper system swells the price to an equally unnatural extent.
In that case the tariff operates no longer as a protection. If, for instanoe,
prices rise forty or fifty per cent., which is no uncommon occurrence d iring an over issue o f paper money, and if those articles are protected by a
duty o f twenty per c e n t, the importer gains still a handsome profit, after
having paid the d u ty ; and the producer, for whose benefit the protection
was intended, must sell his products with a loss, or cannot sell them at
all, in the competition o f the market. Therefore, where the tariff is in ­
tended as a protection, there also the standard o f value must be as stable
as possible. Strange, it appears, that the same persons who are for a high
tariff, frustrate the latter by their demand for an abundant issue o f paper.
If the producers understood rightly their own interest, they would not be
in favor o f such issuing; the speculators only can be in favor o f the latter.
In regard to the nature o f the tariff itself, a revenue tariff, with a protec­
tion only o f those branches o f industry which are natural to the country,
and, as such, are apt to acquire a sound flourishing state, seems to recon­
cile the conflicting interests. By protection is not to be understood a duty
equal to a prohibition— for this would annhilate the idea of a revenue—
but only such a duty, that the existing branches o f industry can stand in
competition, and may not be brought to ruin. A protecting duty ought
only to be so high, that after its payment, some foreign goods can be
imported ; this preserves the stimulus o f competition, which induces the
producers to exert themselves.
But to produce and call forth artifici­
ally branches o f industry, and to form a class o f manufacturing labor­
ers, can certainly not be the policy for a country like America, holding
out so strong inducements for investments in agriculture, where industry
is surely and richly rewarded, without the sacrifice o f health, and with­
out the contaminating influences o f a dense manufacturing population.
The agriculturists— under which I include all who produce the raw ma­
terial, the lords o f their lands— are happier than the manufacturers, and
seem to be the very pride o f the country. It is evidently for their ad­
vantage to purchase their articles for consumption as cheap as possible,
and, therefore, it is for their interest to patronize free trade. W ith an
increasing population and wealth, manufactories will naturally grow, as
competition for labor will be abundantly added to the vast natural re­
sources. But since all do not prefer the occupation o f agriculturists, and
since the natural inclination and talent ought to be consulted and re­
garded in such questions, and since some Americans, like the English,




184

Trade o f Great Britain and the United States.

[September,

seem to desire the manufacturing business, the above-mentioned views in
regard to a tariff seem to be demanded ; but, we must recollect, that
whatever is done in the way o f protection for the manufacturers, is a sa­
crifice to their advantage by the whole people. The interests o f the United
States are, in this respect, very similar to those o f the Zdlverein, o f whose
tariff I have spoken in a previous article, to which I refer on this
point.
I coincide, c f course, with the truths o f political economy, in regard to
the subject of free trade ; and consider, therefore, a revenue tariff as only
justifiable, if the artificial condition and policy o f other countries disturb
not the practical application o f those truths.
I conclude this essay with the remark, that I am entirely disinterested
in my views, and have no wish to come within the sphere o f political con­
tention. la m simply desirous o f contributing towards the full discussion
o f a few o f the most important questions regarding the currency now agi­
tated in most countries. *

TRADE OF GREAT BRITAIN AND THE UNITED STATES.
W e have received the returns relating to the trade between this coun­
try and Great Britain, bringing down the figures to the 1st o f July, and
from them have prepared the follow ing review . W ith the exception of
breadstuffs, the returns show most favorable results, the totals for the first
six months o f the present year being greatly in excess o f the correspond­
ing period in 1865 and 1864.
The total declared value o f the exports o f British and Irish produce and
manufactures during the six months ending June 30 was £92,857,830.
In the corresponding period in 18(35, the aggregate value was £74,128,633,
and in 1864 £78,047,586. The increase during the present year, as com­
pared with 1865, is no less than £ 18,7 00,00 0; and, on com parison with
1864, £14,800,000. F o r the month o f June, however, ow ing to the panic
in England and the high rate for m oney, the exports were less than during
any preceding month, January alone excepted ; and it seems probable,
then, when the returns for J u ly shall have been issued, a further diminu­
tion w ill be shown. F o r each o f the six months in each of the last three
years, the exports o f British and Irish produce and manufactures from
Great Britain were as under :
J an u ary..................................................................................
F e b ru a r y ................................................................................
M a r c h .....................................................................................
A p r i l .......................................................................................
M a y ..........................................................................................
J u n e ........................................................................................

1864.
£10,413,586
13,698,121
13,555,674
13,225,039
14,176,640
13,978,526

1865.
£10,489,339
1;,376,214
13,770.154
12,071,111
18,194,758
13,227,012

1866.
£14,354,743
15,116,063
17,520,354
15,366,414
15,870,131
14,630,120

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

£78,047,586

£74,128,633

£92,857,830

The return o f im ports em braces a period o f five m on th s; for that
period during the current year, the im ports w ere o f unusual magnitude.

* For further explanations T refer to my treatise “ U eber die neuere Fntwiekelung
des Bankweseus in Deutschland,” and to my appendix to the translation o f “ Mr.
M cCulloch’s Treatise on M etallic and Paper money and Banks.”




1865]

Trade o f Great Britain and the United States.

185

The com puted real value o f the principal articles im ported being £92,029,657, against £5 9,99 3,18 4 in 1865, and £77,111,991. The increase
in 1866, as com pared with 1864, amounts to £23,000,000. In cotton,
the increase is no less than £2 3,00 0,00 0— £20,000,000 being the value o f
the augmented im port from the United States— whilst in wheat and flour
there is an increase o f £3,000,000. F o r each m onth in each o f the last
five years to the close o f M ay, the com puted real value o f the principal
imports was as under :
1864.

1866.

1868.

In J an u ary.......................................
F e b r u a r y .........................................................................
M a rch ................................................................................
A p ril..................................................................................
M a y ....................................................................................

£7,520,356
13,214,541
16,306,028
17,587,565
22,392,601

£6,398,022
12,801,252
13,005,304
13,078,755
14,595,334

£9,847,564
16,610,159
10,891,204
22,455,068
23,224,763

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

£77,111,001

£59,993,184

£92,020,657

Respecting this country, the value o f the export trade in British and
Irish produce and manufactures during the five months ending M ay 30,
was nearly £9,000,000 greater than in 1865, and £3 ,000,000 in excess o f
1864. The extent o f this trade in each year w ill be seen in the sub­
joined statem ent:
T o A tla n tic p o r ts . N o rth e r n ..............................................
“
S ou th ern ..............................................
P acific p o r t B .............................................................................

1864.
£9,932,246
55,463
830,828

1865.
£4,776,738
21,948
157,747

1866.
£12,456,807
502,516
290,748

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

£10,318,537

£4,955,433

£13,249,85

CO TT O N .

The return relating to this staple presents m any features o f interest,
the principal o f which is the v ery large increase in the im port from the
United States. The arrivals from the East Indies have also been on a
very extensive scale, and exceed any form er period. Brazil also shows
an increased exportation, whilst from E g y p t and Turkey the receipts show
a considerable falling off, m ore especially as regards the latter country.
F rom China there has been no im portation during the present year. In
the m onth o f June, out o f a total im port o f 1,677,672 cwts., 759,160
cwts. were from the United States, and 728,646 cwts. from the East Indies.
Annexed is the statement o f im ports for the six months :
P rom U n ited S ta te s.............. >.............................. . . . . . . . . .c w ts .
Baham as and B erm udas........ .............................................
M e x ic o ..........................................................................................
B razil ......................................................
T u r k e y ..........................................................................................
E g y p t ............................................................................................
B ritish I n d ia ..............................................................................
C h in a ....................
O ther c o u n t r ie s .........................................................................
T o t a l.................................................................................

1864.
92*069
155,244
141,115
182,216
124,047
708.244
1,608,773
411,369
123,891
3,546,968

1865.
70,335
152,076
220,393
222,500
152,607
769,871
1,135,842
210,885
174,248
3,108,853

186?.
8,231,089
5,931
3,145
408,678
78,531
619.538
2,378,199
............
132,631
6,857,742

The com puted real value o f im ports for the fiv e months, was as follow s :
P rom U n ited S ta tes............................................................................
Baham as an d B erm u da s.......................................................
M e x i c o ........................................................................................
B r a z il.................................................................................... f . . .
T u r k e y .........................................................................................
E g y p t ............................................................................................
B ritish I n d ia ..............................................................................
C h in a ................................................
O ther c o u n tr ie s ........................................................................
T o t a l..................................................................................

VO£,

LV.—

MO. III.




13

1864.
£675,286
1,652,083
1,648,955
1,709,909
995,657
7,388,725
11,621,924
2,610,082
1,038,060

1865.
1866.
£443,K!3 £30,221,557
1,230,405
24,089
1,399,989
28,591
1,556,298
2,802,973
645,193
482,520
5,323,848
5,020,493
4,688,073
9,066,887
936,099
............
959,129
750,642

£29,340,681 £17,182,887 £38,397*753

186

Trade o f Great Britain and the United States.

[September,

The exports o f cotton from Great Britain show no proportionate increase
to the im ports, only 370,000 cwts. having been taken this year m ore
than in 1865. The follow ing were the quantities taken for export from
Great Britain in the first six months o f each o f the last three years :
To
R u s s ia ...................................................................................................
P r u s s ia ..................................................................................................
H a n o v e r ...............................................................................................
H an se T o w n s ..................................................................................
H o lla n d .................................................................................................
O th er C o u n trie s ............................................ „ ..................................

1S64.
cw ts*
121,290
6,793
31.652
26 i,979
206,847
428,342

1865.
c w ts.
83,074
15,381
13,287
324,177
184,872
561,573

1866.
c w ts.
129,471
31,383
5,618
405,076
236,531
742,874

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

1,056,902

1,182,364

1,550,953

BREADSTU FFS.

Our latest advices from England report m ore firmness in the wheat
trade, with an upward tendency in prices. The markets in England
have recently been subjected to numerous fluctuations. The com m ence­
m ent o f the war on the Continent o f E urope caused prices to advance 6s.
to 10s. per q u arter; but the probability o f the conflict being brought to
a termination, com bined with fine harvest weather, and favorable pros­
pects respecting the crops, had the effect of producing considerable heav­
iness in the trade, and the im provem ent above noted was subsequently
lost. W e learn, however, that the weather in England had becom e
changeable, and as harvest work had just been com m enced, much anxiety
was felt. A t latest date, there were no sellers o f wheat, except at high
prices. In France, the crop o f wheat is much below last year, but is,
nevertheless, about an average in extent. A g ood crop o f wheat has been
secured, both as regards quantity and quality. Subjoined is the statement
o f im ports o f wheat, maze and flour into the United K ingdom for the
six months ending June 30 :
W HEAT.

212,901
21,187
588,088

1866.
cw ts.
3,649,398
1,663,193
148,615
73,507
302,225
315,701
2,683,389
295,973
7 012
315,160
8,789
2,045,114

7,462,268

11,508,616

173,911
1,343,316
1,102,554
101,337
53,643

1865.
cw ts.
129.294
1,231,380
108,694
14.136
78,871

1866.
cw ts.
130,352
2,713.046
164,735
6,142
120,209

2,744,751
1,063,916

1,562,375
2,076,918

3,134,484
6,151,931

1864.
F rom
R u s sia ...........................................................
P r u s s ia ......................................................... .
D en m ark.................................... ...................
S ch lesw ig, H olstein , and Lauenburg.
M eck len b u rg ..........................................
H an se T o w n s ............................................ .
F r a n c e ...........................................................
T u rk ey , W allachia, and M old avia ____
E g y p t ..............................................................
IJiiited S ta tes ..............................................
B ritish N orth A m e r ic a ..........................
O ther C ou n tries ........................................
T o t a l...................................... •« * . ..

cwts.
.........................
........................
.........................
.........................
........................
........................
........................
........................
........................
........................
........................
........................

1,195.411
2,306,932
434,338
159,753
324,047
340,539
437,394
227,357
366.842
3,879,304
140,422
234,422

........................ 10,047,102

1865.
c w ts.
2,693,820
2,260,322
233,665
134,640
260,768
245,822
460,662
352,293

FLOUR.

1864.
F rbm
H an se T o w n s ...............
F ran c i ................................
U n ited .S tates..................
B ritish N orth A m erica,
O ther C o u n ttie s..............
T o t a l..........................
I n j &a n

C o r n ......................

cwts.
.........................
.........................
........................
........................
.........................

It is curious to observe that the return for June shows, for the first time
on record, probably, no im portation o f wheat from the United States, and
only 1,023 cwts. o f flour. F o r E g yp t, in June, 7,012 cwts. o f wheat were




1866J

Trade o f Great Britain and the United States.

187

received, being the first supplies for a considerable period. It m ay
therefore be presumed that E g y p t has at length grow n sufficient wheat
for her own consumption, and is again likely to becom e an exporting coun­
try. F o r som e period, ow ing to the remunerative prices obtained for
her cotton in England, the cultivation o f cotton was so much extended,
whilst that of wheat was so greatly reduced, that Alexandria becam e an
im porter o f wheat, and was com pelled to purchase large supplies o f pro­
duce at ports in the Black Sea and Sea o f Azoffi The close o f the civil
war and the fall in the price o f cotton appear, therefore, to have brought
agriculture in E g y p t to the position in which it stood previously to the
outbreak in this country.
B R IT IS H

AND

IR IS H

PROD U CE

AND

M AN U FACTU RES.

The statement is very favorable, so far as the six months is concerned,
and although there is a falling o ff in June, as com pared with M ay, the
figures for June present very satisfactory results. F o r the six months
ending June 30, the declared value o f the exports o f the leading articles
o f British and Irish produce and manufactures was as follow s :
A lkali............................................................................
Beer and a le................................................................
Coals ..........................................................................

£227,713
32,587
55,756

£197,889
17,329
45,912

£478,078
35,543
40,424

1,244,635
137,537
233,357
616,999

642,648
50,855
164,180
325,435

2,052,299
188,511
375,928
758,318

73,678
57,622
178,761

60,794
37,652
82,689

145,540
55,546
345,324

1,595,120

1,123,345

2,187,621

183,736
568,144
640,344
11,445
180,947
189,581
328,500
12,971
173,241
512,036
45,942
17,932

52.617
77,395
128,898
1,908
28,398
72699
140,930
18,098
16,547
399,132
1,548
13,492

157,351
281,948
435,280
9,554
167,463
117,694
322,348
26,566
62,231
740,735
119,391
67,583

61,794
15,169
27,441
65,738
26,190
9,678
35,742

31,050
999
12,077
49,144
13,541
867
366

85,054
5,685
23,199
63,758
35,127
7,167
242

623.231
245,860
53,414
1,526,816

171,793
75,457
9,319
920,758

539,811
386,336
20,672
2,028,079

C otton M a n u f a c t u r e s —

Piece g o o d s .. ....................................................... .
Thr ad ......................................................................
Earthenware and porcelain......................................
Haberdashery and m illinery........................ ...........
H ard w ares and Cu tl e r y —

Knives, forks, & c...................................................
Anvi e, vices, & c ....................................................
Manufactures o f German silver..........................
L in e n M a n u a c t u r e s —

Piece g o o d s ............................................................
M etals—

Iron—P ig..................................................................
Bar, & c .........................................................
Railroad........................................................
Castings.......................................................
H oops, sheets and boiler plates..............
W rought......................................................
S teel—U n wrought..................................................
Copper, w rought....................................................
Lead, p ig .................................................................
Tin plates................................................................
Oilseed .......................................................................
Salt
.........................................................................
Si l k M a n u f a c t u r e s —

Broad piece good s.................................................
Handkerchiefs, scarfs, & c ..................................
R ib b o n s ...................................................................
Other articles..........................................................
Other articles m ixed with other materials.......
Spirits, British...........................................................
Wool ........................................................................
W oollen a n d W o r s t e d M a n u f a c t u r e s —

Cloths o f all k in d s..... ..........................................
Carpets and druggets...........................................
Shawls, rugs, & c..................................................
Worsted stuffs o f w ool only, and o f wool m ixed
P R O V IS IO N S .

W ith the exception o f cheese, the im ports are in excess of last year.
O f eggs, the im ports into the United K ingdom in the six months ending
June 30, were on a scale o f great magnitude, and greater than in any
former year. Considering the high prices, however, the im ports do not




188

Trade o f Great Britain and the United States.

show so large an increase as m ight have been expected.
months the im ports w ere as under :
B a con and ham s, c w t s ..................................................................
B eef, salt, c w t s .................................... ; .........................................
P ork , salt, c w ts . ..........................................................................
B utter, c w t s ......................................................................................
C h eese, c w t s ....................................................................................
E g gs, n u m b e r ..................................................................................
Lard, c w t s .........................................................................................
L IV E

1864.
815,965
224,187
134,134
409,203
234,176
172,450,000
101,616

[September,
F o r the six

1865.
403,449
131,471
95,560
455,752
240,503
195,218,160
76,000

1866.
451,744
131,621
123,179
464,645
190,409
249,290,280
193,293

ST O C K .

The im ports o f sheep into Great Britain have increased, but o f other
stock they have declined. A s regards beasts and calves, the decline
arises from the circumstance that the British G overnm ent have prohib­
ited the im portation of cattle from D utch ports, and only within a very
short period has the prohibition been rescinded so far as Friesland and
Groningen are concerned. B elow w e g ive the im ports o f livestock into
Great Britain for the six months ending June 30 :
1864.
47,966
15,928
129,350
18,802

O xen , hulls and c o w s
C a lv e s ..............................
S h eep and la m b s ........
S w in e and h o g s ..........

1865.
74,392
18,785
250,212
38,706

1866.
72,812
9,122
411,729
29,873

S H IP P IN G .

D urin g the m onth o f June, and the six months ending with June,
the follow ing num ber o f A m erican vessels entered and cleared at British
ports in the United K in gdom :
E n tered in Ju n e, 1866 ..........................................................................................................
do
1865..........................................................................................................
do
1S64 ..........................................................................................................
E n tered s ix m o n th s en d in g J u n e 30 .............................................................................
do
do
do
1865 .....................................................................
do
do
do
1864 .....................................................................
C leared in Ju n e, 1866 ..........................................................................................................
do
1865 ..........................................................................................................
do
1864...........................................................................................................
C leared s ix m o n th s en din g J u n e 30 ..............................................................................
do
oo
do
1865.......................................................................
do
do
do
1864 .......................................................................

N u m b e r.
39
11
29
230
117
202
50
20
30
283
158
213

T on n age.
38,026
11,226
31,884
232,512
127,088
231,871
52,317
13,993
31,709
283,328
156,279
235,639

The annexed statement shows the num ber o f vessels, o f all national­
ities, entered and cleared at ports in the United K ingdom , from and to
the United States, in the ab ove p e r io d s :
E n tered in J u n e , 1866 ........................................................................................................
do
1865 .........................................................................................................
do
1S64 .........................................................................................................
E n te r e d in s ix m on th s e n d in g Ju n e 30,1866............................................................
do
do
do
do
1865..............................................................
do
do
do
do
1864 .............................................................
C leared in Ju n e, 1866 .........................................................................................................
do
1865..........................................................................................................
do
1864 ..........................................................................................................
C lea red in s ix m on th s e n d in g Ju n e 30, 1866..............................................................
do
do
do
do
1865...........................................................
do
do
do
do
1864...........................................................




N u m ber.
143

34
87
848
235
515
91
71
93
739
366
637

Ton nage.
128,930
45,981
85,861
782,046
276.023
5,111,838
106,670
78,500
90,188
768,746
432,541
649,703

1866]

Pittsburg— its Present a n i F u tu re.

189

PITTSBURG— ITS PRESEN T AND FU TU RE.
BY

J.

A . BLAKE.

Pittsburg is the greatest and the richest mining centre in America. It
ranks the third city in manufactures, and its commercial facilities are un­
rivaled. Situated the confluence o f the Monongahela and the Allegheny,
the banks o f the former ribbed with coal veins and beds o f iron ore from
source to mouth, and the banks o f the latter, with its tributaries, bordered
by the richest oil lands in the world ; at the head o f navigation on the
Ohio, by which she has commercial intercourse with the whole great South
and W est, and the cities across the ocean ; at the junction o f the two
richest rail thoroughfares in the cou n try; yearly planning and receiving
new channels for her trade East, W est, North, and South ; and extending
a net-work o f railroads that control and bring to this city the products o f
every mining field within a radius o f tw o hundred miles ; forging the
great guns and the iron clads that made the old Union strong a g a in ; and
making ploughshares, engines, and implements of agriculture for the
“ piping times o f p ea ce;” the centre o f the great steel, iron, and glass
works; a Newcastle, a Sheffield, a Birmingham, a Staffordshire; every­
thing that any citv could ever aspire to be, in commercial, manufacturing,
mining and political position, is Pittsburg.
It is our purpose, in this article, to find out the chief elements o f our
prosperity, to give statistics o f our trade, to exhibit our present wealth and
commercial importance, to speak o f the obstacles where we might mend
and o f the facilities where we excel, and to trace our future. W e shall
begin by stating the element that has both been the beginning and the
chief cause o f our prosperity.
TH E

C O A L TRADE.

The coal fields surrounding Pittsburg are 15,000 square miles in extent.
The developed fields lie along the Monongahela, Youghioghenv, and
Allegheny Rivers, and along sections o f the Pennsylvania, Connellsville,
and Pittsburg and Steubenville railroads. The collieries o f the Monon­
gahela, which mainly furnish the markets with “ Pittsburg Coal,” are
about seventy in number, covering 12,89+ acres, and valued at $4,809,875.
They employ 3,485 bands. It is estimated that they have furnished, in
the last twenty years, 13,097,581 tons o f coal. The value o f tolls col­
lected from shipments o f coal in the several pools o f the Monongahela
slack-water, during 1865, was upwards o f $85,000, an increase o f $45,500
in two years.
The coal freights o f the Youhiogheny are brought to this city by the
Connellsville Railroad. There are 22 collieries along this road. Thev
embrace 3,929 acres, and are valued at $1,000,000. They employ 900
men. From these collieries the average amount transported over the
Connellsville Riilroad, for the past five years, has been about 2,000,000
tons, worth $5,000,000.
In the hills immediately circling the city there are some ten or twelve
'coal works, covering an area o f 1,570 acres, value ! at $1,256,000. and
giving employment to about 1,500 hands.
Several o f our rolling-mills
across the Monongahela, in Sligo and Birmingham, are supplied directly




Pittsburg— its Present and Future.

190

[September,

b y collieries a few feet above them. Graff, Bennett & C o., who consume
nearly 10,000 bushels a day, mine their coal in the adjoining hilhide.
These “ city mines” furnish nothing for outside markets.
They yield a
yearly product o f 3,000,000 bushels, all o f which is consumed by our
rolling-mills and ironworks.
The collieries that border the Pennsylvania Railroad from this city to
the “ foot o f the Mountain” are not usually classed as in Pittsburg
measures, though the most valuable lie nearest this city. The bulk o f the
bulk o f the trade goes East. Those immediately in the vicinity o f the city
cover about 1,000 acres all told, employ 400 hands, and send to this mar­
ket an annual average o f about 4,500,000 bushels.
The Allegheny V al­
ley collieries, though neither very numerous nor productive, extend over
a large tract o f territory, perhaps 1,500 acres, and employ about 500
hands. From these collieries, the Allegheny Valley Railroad brought to
this city last year about 70,000 tons. These coal lands are considered ex­
ceedingly valuable, and but for the limited facilities for transportation at
the very season when their product is most called for, they would no
doubt be extensively worked.
The exact depth and value o f the coal measures around Pittsburg it is
impossible to figure.
But the upper seam alone averages eight feet iD
thickness.
An industrial writer figures the contents at 53,516,430,000
tons, which, at $2 per ton, would be worth 1107,032,860,000. The total
number o f collieries at present in operation in the Pittsburg coal field,
embracing the whole range which we have described, is 1 0 3 ; hands em­
ployed, 0,424 ; value o f lands, $7 ,589 ,7 00 ; value o f annual coal product,
$5,000,000.
It is impossible to point out in figures the influence o f the coal trade on
the birth and growth o f Pittsburg.
It has opened the way for all our
great manufactories, gives employment to nearly 7,000 miners, and twice
as many artisans, has made men wealthy, built our churches, educational
institutions, and charity schools. In fact, coal is Pittsburg.
It built
Pittsburgh, made it a rich, populous city, put into its coffers such abun­
dant solid wealth that, when the rebellion came, it lost $30,000,000 with­
out shaking its credit.
OUR

O IL T R A D E .

A discussion o f our manufactures would naturally follow wbat we have
said about the coal trade, but we prefer to consider our oil trade first, not
because it is in the front rank o f all our industries merely, for it overtops
them all, but because it is more in the province o f this journal, and its
sudden and unparalleled growth and influence on our prosperity demand
large figures. Five years ago, the oil trade of Pittsburg was in its in­
fancy. The follow ing table w ill show its progress and value. The
receipts by the Allegheny River for seven years, ending D ecem ber 31,
1865, were as follows :
Y ea rs.

Barrels. A v .p r ic e o f cru de.

1859......................................................
................
1861........................................................
1862........................................................
1868........................................................
1864........................................................
1865.........................................................
Total in seven years..................




V e sse ls.

* ------

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

2
1
8
10
9

258,780
800,604
677,950
4,888,624
11,400,000

17,161
75
75
87
25
50

50
50
87.
75
00

$17,526,960 12

1866]

Pittsburg— its Present and Future.

191

The oil receipts by the Allegheny Valley Railroad for the past two
years have been :
Barrels.
1864 .................................................................................................................................... 187,870
1865 .................................................................................................................................... 650,000
Total in tw o years.............................................................. ..................................

839,870

The exports o f oil over the Pennsylvania Railroad form this city in 1865
were 465,825 barrels, or an average o f 1,503 barrels per clay for the
working days.
This vast trade has created other branches o f business.
It has given
employment to thousands o f boatmen on the A llegh en y; has widened the
demand for barges, tugs, and steamers; has built sixty refineiies in onr
suburbs that furnish the domestic and foreign markets with the great
bulk of their supply, and to do a business amounting to 11,000,000 per
year. It has built portable engine, tanking, still, boiler, and oil tool
works, lhat send to the oil regions o f Pennsylvania and Virginia $2,500,000 worth o f material per year. This trade has made railroads necessary
in the oil regions, and Pittsburg has furnished the rails; steamers, and
Pittsburg has built them ; capital and labor, and Pittsburg has furnish­
ed it; in fact, the development and early success as well as the prom i­
nence o f the oil trade in Venango County is due, two thirds, to the ener­
gy and tact o f Pittsburg capitalists.
Pittsburg is the great centre of the oil trade— a trade whose value to
the country is $65,000,000 a year, and the revenue from which, to the
Government, is also counted by millions.
The tax on the refined oil, in
this city, during the single month o f October, last year, was $36,951 10,
gain o f $13,095 30 over 1864.
That some idea may be formed o f the
amount o f business done by our oil merchants, it is sufficient to in­
stance Messrs. W aring & K ing, who, in the single month o f August last
(a dull month), sold 62,231 barrels, and Tack Brothers & Co., who sold
30,000 in the same time. The value o f the refined and crude oil shipped
over the Pennsylvania Railroad, from this city, last year, was over $15,000 ,000 .
Let us take a cursory glance at the source o f our present and expectant
supply o f oil. Venango County lies along the headwaters o f the Allegheny
River and its tributaries.
This river, either by main stream or its
branches, navigable to the very wells themselves, is our chief and only
direct thoroughfare for the oil trade. One million dollars would complete
the Allegheny Valley Railroad to the very heart o f the oil regions and
bring us so close to the great supply that no city in the Union could ever
hope to compete with us for the trade.
But this is not done. And our
enormous trade is clogged when the river closes every year.
But let us
look at the wealth o f the district from which our wealth indirectly comes.
From the returns of the Collector of Internal Revenue for the district em ­
bracing Venango County, it appears that the Government received the
the following revenues from crude oil for the months indicated:
April, 1865.................................. $111,991 50 I July, 1865.................................. $181,288 55
May, 1865...................................
98,394 50 August, 1865............................. 200,000 00
June, 1865................................... 412,258 44 | November, 1865....................... 246,734 00




192

Pittsburg— its Present and Future.

[September,

The tax on refined during the same time in that district amounted to
$700,000. The total tax on crude and refined, for the first six months o f
last year, was $1,738,095. For the whole year, 1865, it was $2,897,032
03.
In 1863, the revenue derived was $649,962 00 ; in 1864, $2,255,238 80.
W e give the above exhiit that some idea may be formed o f the real
value o f the oil supply. But this must fall far below the ac'ual figures,
for the enormous tax on crude oil has cheated the Government out o f
half its dues, falsified the figures, and put a discount on the production
which otherwise there would be every temptation magnify.
All the oil that comes to Pittsburg from Venango County comes to
its natural and easiest market. Upper Oil Creek, Bennehoff Run, and
Pithole send considerable oil to Philadelphia, New York, and Cleveland,
direct, by the Oil Creek, Atlantic & Great W ester i, and Philadelphia &
Erie Railroads. This is largely the case when the navigation o f the A l­
legheny is impeded. For instance, during December the Oil Creek Rail­
road transported 45 ,000 barrels o f crude to Corry. Pittsburg g e's some
o f the oil that seeks that outlet.
W ith these statistics, we leave the oil
trade. W e have now to discuss Pittsburg manufactures.
In manufactures, Pittsburg is pre-eminently great.
The natural facili­
ties, the capital, the energy that cluster to this point make us the Birming­
ham o f America. Our growth is unprecedented.
The total value o f all
the manufactures in Pennsylvania in 1850 was but $155,000,000. The
value o f Pittsburg manufactures is now more than two-thirds that
amount. The value o f iron and steel manufactures in the United States
in 1860 was $180,140,615. The value o f our Pittsburg iron and steel
trade last year was over $20,000,000, or one ninth the whole product.
On this aggregate value, the direct tax actually paid was $3,882,546.
Pittsburg paid $438,97-'.
In the returns made to the Revenue Officers
o f this city for eighteen months, from September, 1863, to March, 1865,
we find the following statistics o f sales in the articles o f iron and steel:
A xes, shovels, saws, spades, mattocks, p ick s............................................
Forging, oil stills, tanks, boilers, shafting, steamboat irons, oil t o o ls ..
Bolts, nuts, spikes, rivets, nails, washers.....................................................
Railroad chairs, spri gs, ax les......................................................................
Ir n and steel bar, sheet, plate, p i g .............................................................
W rought iron gaspipe, horse shoes, edge tools, ironware.........................
Machinery, castings, domestic hardware..... ................................................

$1,128,146
1,640,163
3,818,559
1,200,000
28,843,123
481,120
6,392,087

00
00
00
00
00
00
00

T o ta l............................................................................................................ $42,998,203 Oo

The total production of steel of all kinds in the United States in 1865
was 18,000 tons.
Pittsburg alone produced 10,000 tons, and the capa­
city o f her steel works is 48,000 tons per annum. W e control all the iron,
steel, and glass markets o f the W est and South. Our factories multiply
more rapidly than our houses. A s an instance o f the multitude o f the iron
and steel business to the railroads centering here, we may state that, in
the single month o f July last, the imports o f iron by the Pennsylvania
Railroad amounted to 1,730 tons. The number of cars employed in trans­
ferring this produot was 173, and yet this was the dullest month the iron
trade had experienced for years, and represented only about one-third our
usual business.




193

Trade with British America.

1866]

Some idea o f the growth o f our manufactures may be gathered from the
fact that the returns o f October, 1865, showed a business o f $219,691 I t ,
while those of October, 1864, were but $185,803 07. The amount o f
steel exported by rail in the year ending September 1, 1864, was 11,874,202 pounds against 7,824,873 pounds for the previous year. About the
same amounts with the same ratio o f increase are exported by river.
The cost o f “ running” our manufactures may be imagined from the
fact that our foundries pay out over a million collars annually in wages,
and consume 50,000 tons o f metal. Our Fort Pitt Cannon Foundry paid
weekly wages to workmen averaging $5,000 during the war. Our glass
factories pay $175,000 monthly in wages. Our iron works employ over
9,000 hands, and pay annua wages o f over 3,000,000.
The ratio production between this city and other cities, States, and the
United States, o f some o f the principal manufactures, gives Pittsburg an
extraordinary record. W e produce one-half of all the steel manufactured,
and one-fifth o f all the copper used in the country.
The annual value o f
the glass trade o f the city is understated when given at seven millions of
dollars, yielding an internal revenue to the Government o f about $350,000. That o f the glass factories east of the mountains is given at $3,123,000, and as yielding an internal revenue o f $156,150. It is, therefore,
apparent that glass manufacturing at Pittsburg is in all things quite
double that o f the rest o f the United States.
We refine nine-tenths o f all
the oil that goes to foreign markets.
The quality o f some o f our manufactured products are such as no city,
State, or Nation can rival. The best brands in the nail markets every­
where are the Juniata, Clinton, Kensington, and Eagle. The iron market,
of the country put forward W ayne, Sable, American, Sligo, and Duquesnes
The favorite brands o f glass in all markets is O ’ Hara, Arsenal, and Pnoenix.
And in our home and foreign trade for refined oils, the call is for Standard,
Soho, Petrolite, and G lobe. The best qualities o f in anufactured steel in
the country bear the mark Black Diamond, Sheffield, and W ayne.

TRADE W ITH BRITISH AM ERICA.
PR E P A R E D

BY

M R . JA M E S W .

T A T L O R , S P E C IA L

AGENT

OF

TH E

T R E A SU R Y

DEPARTM ENT.
(C o n tin u e d from p a ge 116.)

The table accompanying the imports of 1864 and 1865 is as follows :
Articles.
Animals......................
Beef and p ork .........
Butter and la r d .. . .
Coal.............................
Codfish......................
Heirings & alewives.
Mackerel....................
Salmon and t r o u t.. .
Scale fish...................
Other fish..................

Val. 1864.
$283,344
49,817
149 823
806,314
1,278.582
218,046
1,14 7,039
68,829
153,310
28 734

T ota l..................
Total in crease..




Val. 1865.
Articles.
Val. 1864. Val. 1865.
$261,568 F ruit........................... $35 380
$36,454
92,764 Grain..........................
46.525
60,909
114.133 Gypsum .....................
43,750
45.350
1,253,650 Hides and skins. . . .
51 995
74,071
1,411,377 Oil— v iz .: fish o i l . . . 101,’ 02
194,505
452,337 Stone, building........
32,902
ln.382
1,077,273 V e g e ta b le s.. . . . . .
121,287
183,252
62,177 W ood ware.unmanuf. 855,840
762,585
214 574 Unenumerated.........
240,337
619,971
64,528 Foreign productions. 1,397,221 1,840,193
7.172,817
1,657,876

8,830,693

194

Trade with British America.

[September,

Deducting the foreign productions, it will appear that Nova Scotia ex­
ported about $7,000,000 o f her own productions last year.
The exports were divided thus:
Great Britain...........................
B. N. American colonies. . . .
British W est Ind ies................

$764,742
1,701,054
1,966,459

United S tates............................. $3,619,797
Spanish W est In d ies................
389,894
Other countries..........................
397,747
$8,830,693

The principal articles exported to the United States were :
Coal............................................
Fish o f all kinds......................
Fish o il......................................
Grain o f all kinds..................
Gypsum , lime, and p la ste r..

$1,085,745
1,362,7 99
117,862
28,639
40,580

Hides and skins.........................
S to n e ............................................
V egetables, including potatoes.
W ood and lumber o f all kinds.

$23,952
15.563
148,734
160,044

Coal and lumber are such necessities to New England that the supply of
those articles will not probably be diminished by the abrogation of the re­
ciprocity treaty.
It is also alleged that the high priced soft pine lumber
o f New Brunswick, hitherto furnished exclusively to American manufac­
turers, must continue to be exported hither, whatever the duty, as
“ it is required for fine work and finishing purposes, and there is no sub­
stitute.”
The shipping o f Nova Scotia is now registered at 3,898 vessels, worth
$13,347,500, o f which 491 vessels, valued at $2,923,058, were registered
during 18G5.
These earn freights in ah directions, and are sold abroad
very frequently. They are built and hel l by joint stock associations,
often in moderate shares, and constitute a lucrative and increasing branch
o f business.
The tariff o f Nova Scotia has always been low — an average o f 10 per
cent, ad valorem.
Recently, however, since the abrogation o f the re­
ciprocity treaty, the Parliament o f the province have advanced the duties
upon spirits, wine, and tobacco fully one-third, and imposed duties upon
articles which were free under the reciprocity treaty, as follow s:
Bacon, per 100 lb s ........................... $2 00
1 00
Beef, per b b l ....................................
0 20
Bread, navy or pilot, per 100 lb s.
1 75
Butter, per 100 lb s...........................
Cheese, per 100 l b s ..........................
1 00
Flour, (wheat) per b b l....................
0 25

Hums, per 100 lb s.............................
Lard, per 100 lbs ...........................
Onions, per 100 lb s ..........................
Pork, per b b l.....................................
T obacco, unmanufactured, per lb .

2
1
0
1
0

00
75
50
00
05

I f the confederation o f the British provinces is accomplished, removing
all intermediate duties, and communications with Canada are facilitated
by railway and a St. Lawrence line o f steamers, a material diversion of
trade from the United Ltates is likely to occur.
The course o f trade as
developed between New England and the maritime provinces during the
last ten years has been well described by H on. Joseph Howe, o f Nova
Scotia : “ The small vessels which bring to the United States plaster, coals,
grindstones, cordw ood, fish, and potatoes from the maritime provinces,
take back furniture, boots and shoes, indiarubbers, books, prints, hats,
patent medicines, agricultural implements, and hundreds of other conveniencies, necessities, and luxuries. * * American manufactures are
admitted to entry at mere revenue duties o f from 10 to 12^- percen t.
British manufacturers pay the same. The mill owner in Lowell can place
his goods in Halifax market, paying the charges o f transportation o f less
than five hundred miles, while the mill owner in Manchester is compelled




1866]

Trade with British America.

195

to pay the same duty and transportation charges o f over twenty-five hun­
dred miles o f distance. *
*
Again, every machinist and artisan is in ­
terested in the trade.
The grindstones o f Nova Scotia are made from
reefs covered by the high tides o f the Bay o f Fundy, and left bare when the
tides recede.
The grit is peculiarly fine.
These stones are used in pre­
ference to all others in the workshops of New England, and go far back
into the interiors. They are almost a necessity o f the manufacturing in ­
dustrial life o f the United States.”
Some further details o f the mineral resources o f Nova Scotia will illus­
trate the value of close commercial relations with the United States.”
The more important coal fields o f this province are those of Cumberland
county, lying in the immediate vicinity of the Bay o f Mines ; those upon
the Gulf of St. Lawrence, o f which Pictou is the centre, and those of the
eastern part of Cape Breton, contiguous to the harbor of Sydney. The
Cumberland coal-fields have been only slightly worked, the largest veins
discovered lying some twelve miles from navigable water-courses. The
coal-fields at Pictou lie immediately upon tide-water.
One o f the veins
has a thickness o f thirty-six feet, more than twenty six feet o f which is
workable coal. The deposits near Sydney are already ascertained to under­
lie 250 square miles— an aVea nearly equal to the entire workable area of
the anthracite coal-fields o f Pennsylvania. They are contiguous to an ex­
cellent harbor, with which the more important veins are to be speedily
connected by a railway.
As soon as the necessary works can be com pleted, the supply from
these mines may be made equal to any possible demand. Tha veins crop
out at the surface, and probably 50,000,000 tons o f coal can be raised from
them without going below water-level. There are several other deposits
in Cape Breton which only have been slightly worked.
In reference to
the Cumberland coal-fields, Mr. Dawson, in his Acadian geology, remarks:
“ These veins form reserve o f coal, waiting their full development till rail­
ways extend across them, or till domestic manufactures demand a supply
of mineral coal in the provinces.”
The railway now in progress from
the European and North American Railway, in New Brunswick, to Truro,
will pass over a portion o f this coal-field.
The following statements will show the amount raised and sent to market
from the coal-fields for the past ten years :
Years.
1 8 6 6 ............. . . .
1 8 0 1 .............. ____
1 8 5 8 .............
1 8 5 9 .............

T on s.
2 9 1 ,9 8 4
2 6 7 ,8 0 8

Y ea rs.
I 8 6 0 .................
1 8 6 1 ................
1 8 6 2 ................
1 8 6 3 ................ . . .

T o n s.

Y ea rs.
1 8 6 4 ..............
1 8 6 5 ..............

T on s.

4 2 4 ,3 2 5

W ith proper means o f access to these mines, there is no reason why,
within five years, the amount of coal raised and sent to market from the
provinces should not exceed 2,000,000 tons annually. The means ofsen d­
ing them to market are unlimited, as the ocean is their highway.
In reference to the subject of coal-mining in Nova Scotia, the Chief
Commissioner o f Mines, Mr. Hamilton, in his report, says : “ There are
now thirty collieries in operation in Nova Scotia. Some o f these are only
barely opened , but, with one or two exceptions, works are vigorouly pros­
ecuted in all o f them, and with good prospects o f great and early extension
at an early day. The total quantity o f round and slack coal sold from th
mines for the year ending 30th September, 1865, was 652,854 tons.
In




196

Trade with British America.

[September,

addition to the territory o f the General M i n i n g Association, there are now
thirty-one square miles o f territory under coal mining leases. The exteut
o f acres under license amounts to 1,920 square miles. The spirit and act­
ivity exhibited in carrying on explorations upon the greater number of
these areas under license, and the success which, in many instances, attend
such exploration, indicate an early and important increase in the number
o f collieries in Nova Scotia.
I need scarcely observe, that while the pro­
ducts o f our mines are thus rapidly increasing, and promise to do so for a
long time to come, the demand for these products in the market seems to
increase in a much more rapid ratio.” *
The year 1865 has also demonstrated the permanent productiveness of
the gold mines o f Nova Scotia. These are under the direction o f the Com­
missioner o f Mines, and the government reserve a royalty o f three per
cent, of their gross receipts.
It appears from the Commissioner’s report that the aggregate amount
o f gold upon which royalty has been paid during the year exceeds that of
the preceeding twelve months by about 33 per cent. The quantities are :
For the year ending September, 1865, 24,867 ounces; for the preceding
year 18,744 ounces; increase 6,123 ounces. There is also an increase in
the average yield o f gold per ton o f quartz o f about five per cent., and a
very considerable advance in the amount o f the yield for each man engaged
in mining. In 1863, the average yield per man was 95 cents a d a y ; in
1864, it was $1.30, and in 1865, $2 12. In these calculations the gold is
rated at $18.50 per ounce, which is below its market value. The value of
gold producod last year was $509,080, (paying $18,038 in rents and royal­
ties;) in 1864, $ 4 0 0 ,4 4 0 ; in 1863 $280,020,' and in 1862, $145,500. f
* See report o f the J o in t S tand ing C o m m itte e o f the M assachusetts L egislatu re in favor o f
S tate aid to the E u rop ean and N orth A m erican R a ilw a y be tw e e n B oston and H alifax.
t T h e fo llo w in g is the c o m m is s io n e r s ’ statem ent o f the n u m ber o f hands em p loyed in these
m in es, the ton s o f quartz raised an d crushed, and the d aily y ie ld o f g o ld p e r m an e m p lo y e d for
th e past y e a r :
NUMBER

OF

HANDS E M PLO YE D

Y e a rly aggregate.
1865..............................................................
212.966
...............................................
252,720
1864
1863
...............................................
273,624
1862
...............................................
150,300
T o t a l ................................................

D a ily avg. p e r man.
1865 ...........................................................
234,791
...............................................
168,050
1864
1863 ..........................................................
124.807
1862...................................................................
86,410
M e a n ...............................................

D A IL Y

Y IE L D

OF

r—A v g . g o ld 100 lb.—.
D w t.
Grs.
1
0.902
22.312
-

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

1

PER

19.647

0.790
22.805

M AN.

1865
1864...................................................................................................................................
1863..................................................................................................................................
1862..................................................................................................................................




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

M ean.
G O LD

156,482

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

1865.
1S64.
1863.
1862.

139,364,6S6

T ota l

717.395

R A IS E D .

140,102,500
QUARTZ
Y ea rly
aggregate.
48,846,600
42,887,686
34,150,400
13,480,000

1865
1864
1863
1862

M e a n ...............................................

895,310

QUARTZ
Y e a rly aggregate.
1865
..........................................
50,002,500
1864 ........................................................
42 469,600
1863 .......................................................
34,150,490
1862
13,480,000
T o t a l........................................

D a ily average.
1865...............................................................
500
...............................................
877
1864
1863
...............................................
810
1862
...............................................
682.583

D w t.
2
1
1
-

G rs. G oldval.
8,371
$2 33
14.030
1 58
0.662
1 02
22 385
94

Trade with British America.

197

The fisheries upon the coasts o f the maritime provinces will always be
a leading interest, and is especially so to the people o f Nova Scotia. Their
importance was felicitously illustrated by Mr. Howe, in a speech at the
Detroit commercial convention o f July, 1 6 5 . “ Yo u have behind and
around you here,” he said, addressing an assembly of Americans, “ bound­
less prairies, which an all-bountiful Creator annually covers with rich
harvests o f wheat and corn. The ocean is our prairie, and it stretches
away before and around us, and Almighty God, for the sustenance o f man
annually replenishes it with fish in myriads that cannot be counted, having
a commercial value that no man can estimate. The fecundity o f the
ocean may be estimated by the fact that the roes of thirty codfish annually
replace all the fish that are taken by the British and French and American
fishermen on the Banks o f Newfoundland.”
Under the late reciprocity treaty the interests o f New England connected
with these northeast fisheries were materially advanced. The fishing
industry o f the Atlantic States, exclusive o f the whale fishery, amounted
in 1860 to $4,500,000, of which $3,000,0u0 was taken upon the coasts
of the provinces.
P R IN C E

EDW ARD

ISL A N D .

The area o f Prince Edward Island is 2,100 square miles— the least o f
the provinces, as Delaware with 2,120, and Rhode Island with 1,306
square miles, are the least o f the American States. The population o f
Prince Edward Island, in 1864, was 85,992, or 40.95 to the square mile ;
income, $214,448, of which $162,733 was from customs at an average
tariff rate o f 12 percent.; imports, $ 1 ,6 3 8 ,9 4 6 ; exports $982,699. The
trade with the United States was 24 per cent, o f imports, and 50 per
cent, of exports— the general character o f the trade being similar to that
of Nova Scotia.
NEW FOUNDLAND.

The area o f Newfoundland is 40,200 square m iles: population in 1864,
137,000 ; revenue $518,781, of which $5 0 4 ,0 3 7 was from customs at an
average impost o f 11 per cent.; imports, $5 ,175 ,2 51 ; exports, $5,389,951. Trade with the United States is 33 per cent, o f imports, but a small
proportion, not m ore than 5 per cent., o f exports,
B R IT IS H

A M E R IC A N

C O L O N IE S EA ST.

As a sequel to the foregoing details, which have been given with special
reference to the trade o f each province with the United States, some addi­
tional statements representing the com bined resources o f Canada and the
maritime provinces have been compiled from the debates in the Canadian
parliament upon colonial union.
The united population o f Canada, New Brunswick, Nova Scotia, New­
foundland and Prince Edward Island, in January, 1864, was 3,628,151.
Their public revenues for 1864 were $13,260,000 ; expenditures, $12,507,000. Imports in 1863, $70,600,963 ; exports $66,846,604. Total trade,
$137,447,567. O f the public domain, 45,638,854 acres have passed from
the governments o f these colonies, o f which only 13,128,288 are under
cultivation, while the area not granted or sold is 214,282,817. A ccord­
ing to the census o f 1861, the agricultural product o f the United Prov-




198

Trade with British America.

[September,

inces was §150,000,000, and the assessed value o f farms, §550,000,000 ;
while in 1862, the manufacture of lumber reached 772,000,000 leet, and
the exports o f timber were o f the value o f $15,000,000. In 1865, 628
vessels, with a capacity o f 230,312 tons, were built, the sales o f ships in
that year amounting to $9,000,000 ; while the united tonnage of the
provinces is 8,530 vessels, or 932,246 tons. This fleet is distributed as
follow s:
1864,
1863,
1863,
1863,
1863,

Canada ow n ed......... ...............
Nova Scoti i ow n ed..................
New Brunswick ow ned.........
Prince Edward Island owned
Newfoundland ow ned..............
Total

V e s s e ls .
2 ,3 U
3 ,5 3 9
891
360
1 ,4 2 9

T on s.
2 8 7 ,1 8 7
3 2 9 ,5 5 4
2 1 1 ,6 8 0
3 4 ,2 2 2
8 9 ,603

8,530

932,246

This exhibit ranks British Am erica as the fourth maritime community
o f the world, yielding precedence only to Great Britain, United States and
France. In 1863 the foreign exports representing ship-building and fish­
ing interests were $.6 ,6 9 6 ,0 2 1 . Prominence in this connexion should
also be given to 2,500 miles o f railway, 4,000 miles o f electric telegraph,
and 100 miles o f ship canals.*
The time can be readily anticipated when the Canadian forests will be
indispensable to the American people. They already supply many cities
and districts, which are remote from the Maine and Michigan pineries;
and the forests o f W isconsin and Minnesota, however extensive, will prove
inadequate to meet the wants o f the Mississippi and Missouri valleys.
Reference has been made to the forests o f New Brunswick. Those of
Canada are—
Square m i'es.

1.

— The Saguenay territory, or the valley o f the Saguenay river, rich in
white and red piue, spruce, birch and tamarac........................................
27,000
2.
— The St. Maurice region, uorthwest o f the city o f Quebec, containing
large quantities o f white, red, and yellow pine, spruce, birch, ample,
elm, ash, and tamarac....................................................................................
21,000
8.— The valley o f the Ottawa, hitherto the principal seat o f the lumber
trade o f Canada, which has, perhaps^ denuded 2u,00U square miles
from an aggregate o f no less than..............................................................
87,761
T ot >1

145,761

H on. James Skead, of Ottawa, Canada W est, proceeds with the enuraeration o f lesser districts— 2,350 square miles between the Rideau Canal,
the St. Lawrence and the river Trent, and districts east o f the Saguenay
and west o f the Ottawa, claiming that the area available for producing
pine north o f the St. Lawrence is 287,711 square miles, and the area
wholly or in part producing hard woods is 24.000 square miles. Far the
larger portion o f these timber lands are at the disposal o f government.
The public debt o f the provinces, incurred in the development o f such

* See speech of Hon. George Brown, President o f executive council o f Canada at
the session o f the Canadian Parliament o f February 3 to March 11, 1865— (3d Ses­
sion 8th Parliament)— which was occupied wilh discussion o f the plan o f confedera­
tion presented by a conference o f delegates from the provinces held at Quebec, in
October, 1864.




.

1866]

199

Trade with British America.

a prosperity and upon the assurance o f these great natural resources, will
be consolidated upon the establishment o f the colonial union now under
discussion, in the following am ounts: *
C anada......................................$65,500,000 N ew fou ndland.......................... $3,250,000
Nora S cotia......... , .................
8,000,000 Prince Edward Island.........
1,941,425
7,000,000
-----------------New Brunswick......................
T o t a l................................................................................................. $85,691,425

This adjustment is effected upon the basis o f $25 per capita o f popula­
tion. The debt o f Canada is $27 per capita; that o f Nova Scotia and
New Brunswick less; but liabilities in behalf o f railroads have been
assumed by these provinces, which will make the provision at the rate o f
$25 per capita convenient and even necessary. Canada localizes the
remainder o f its debt.
B R IT ISH

A M E R IC A

W EST.

These are results o f French and English occupation o f the American
Northland during three centuries. It will be next in order to look beyond
the sources o f the St. Lawrence, and consider the situation and prospects
of British America west. Take the meridian o f 9 0 ° west o f Greenwich,
which is the western boundary o f Canada. I f eastward we have found
the area o f five provinces equal to 419,315 square miles, or 268,280,800
acres, it will not be difficult to establish that west o f the great lakes
there are more extensive districts, which, by soil, climate, and mineral
resources, are equally suitable for settlement, and which may be thus
enumerated:
Squ are m ile s .

1. Central British America, enclosed between longitude 90° on the east, the
R' cky mountains on the west, and the 49th and 54th parallels o f lati­
tude, and containing the valleys o f the W iunipeg, Red, Arsiniboin,
Swan, Saskatchewan, and other rivers tributary to L ake W innipeg. . . . 360,000
2. Athabasca, a block o f territory drained by the sources o f the river of
that name, between 110° and 120° o f longitude, and 54° and 58° o f
latitude, recently discovered to be rich in precious m oral', and which is
described by Sir Alexander Mackenzie and others as quite similar in
climate and vegetation to Scotland...................................................................
50,000
5. Sources o f the Columbia, in British Columbia, now the scene o f great ex­
citement by the discovery o f the “ Big Bend ” and “ Kootonais ” gold
fields.........................................................................................................................
20,000
4, The valleys o f the Frazer and Thompson rivers, in British C olu m bia.. . .
60,000
6. Vancouver island.......................................................
16,200
T o ta l.........................................................................................................................

506,200

This immense domain 323,968,000 acres is destined to greater develop­
ments of population and wealth within the next fifty years than three
centuries have witnessed in the Atlantic and St. Lawrence provinces. Some
reasons for such an opinion will be indicated in the remaining divisions o f
this paper.
C E N T R A L B R IT IS H

A M E R IC A .

It is now well known that northwest o f Minnesota the country reaching
from the Selkirk Settlement to the R ock y mountains, and from latitude
* Bee speech o f Jon. A , T . Galt, Finance Minister o f Canada, in debates upon
confederation, p. 62 o f report, February 7, 1865.




200

Trade with British America.

[September,

4 9 ° to 5 4 °, is as f tvorable to grain and animal production as any o f the
northern States; tiiat the mean temperature for spring, summer, and
autumn, observed on the forty-second and forty-third parallels in New
York, Michigan, and W isconsin, has been accurately traced through Fort
Snelling and the valley o f the Saskatchewan to lattitude 5 5 ° on the
Pacific coast, and that from the northwest boundary o f Minnesota this
whole district o f British America is threaded in all directions by the navig­
able water-lines which converge to Lake W innipeg. English and Am eri­
can exploration have also established in favor o f this district that its
average elevation above the sea is far less than in American territory:
that the Rocky mountains are diminished in width, while the passes are
not difficult; that the supply of rain is more abundant, and the carbonif­
erous and silurian formations are o f greater extent than further south,
and, owing to the greater influence o f the Pacific winds through the
mountain gorges and the reduced altitude, that the climate is no material
obstacle to civilized occupation.
It is unnecessary to repeat the narrative o f Lord Selkirk’s colonization
o f the Red River o f the North. O f the present community o f Selkirk
Settlement, numbering ten thousand, about five thousand are competent to
assume any civil or social responsibility which may be imposed upon them.
The accumulations from the fur trade during fifty years, with few excite­
ments or opportunities o f expenditure, have secured general prosperity
with frequent instances o f affluence; while the numerous churches and
schools sustain a high standard o f morality' and intelligence. A district
on the Red river from the international boundary at Pembina to the
mouth o f the river in Lake W innepeg, and upon the Assiniboin river for
a distance o f sixty miles west o f its junction with the Red river at Fort
Garry, has acquired a civil organization under appointments o f legislative
councillors and magistrates by the Hudson Bay Company, which is officially
designated as “ The Colony o f Assiniboia.” Goods are charged with an
impost o f four per cent., whether brought from Europe or the United
States. Land can be purchased by any one at seven shillings sterling per
acre, with liberal credits and at low interest.
The American collector at Pembina, Mr. J. Lemay, reports that during
the year ending December 31, 1864, the imports at Selkirk from Europe
and Canada passing in bond through the United States were valued at
$252,452. H e also returns $45,457 imported from Minnesota, but ex­
presses the opinion that four times that amount passed into the settlement
from the United States. Probably $500,000 would be an accurate state­
ment o f the importation, two-thirds o f which was goods o f the Hudson
Bay Company.
Fort Garry, at Selkirk, is the headquarters o f the Hudson Bay Com­
pany. The posts o f this company, more than fifty in number, occupy
very commanding situations over the immense area, bounded by Hudson
bay and Lake Superior on the east, the R ocky mountains on the west,
and the A rctic ocean on the north. The fur trade o f this territory con­
centrates its annual product on Red River o f the north, at Fort Garry,
from which point, by the annual voyages o f brigades o f bateaux, mer­
chandise and supplies are distributed to the most distant post. Prior to
1858 the exports and imports o f the Hudson Bay Company were princi­
pally transported by the difficult and dangerous route o f Hudson bay and




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Nelson river, or over the numerous obstacles intervening from Lake
Superior to Red river on the British side o f the international line. In
1858, however, materials were transported from the navigable waters of
the Mississippi river to construct a steamer on the Red river, and two such
vessels now navigate that stream. The trade between St, Paul and Sel­
kirk has been greatly increased in consequence. A s just stated, the im ­
ports o f Central British Am erica for the use o f the Hudson Bay Company
and the Selkirk settlers, amount to $500,000 annually, while the aver­
age annual exports, almost exclusively furs, amount to $1,000,000 by the
Hudson Bay Company, and $300,000 by other parties. Total exports
$1,300,009.
The river system o f the W innipeg basin, navigable by steamers, cannot
be less than 3,000 miles— invaluable for the present as a substitute for
railroads, and hereafter as a supplement to the railroad. O f this system
of inland navigation some detail will be given.
1. The navigable capacity of the Red River o f the North may be co m ­
paratively stated as follows : Ascending the stream from Lake W innipeg,
the navigation to Pembina is equal to that o f the Mississippi between
Prairie du Chien and Lake P ep in ; from Pembina to the mouth o f Red
Lake river the channel may be compared to the Mississippi from Red
Wing to Fort Snelling; from Red Lake river to Sheyenne, to the Minne­
sota from Fort Snelling to Slo-kopee ; and from Sheyenne to Breckinridge,
to the Minnesota from Shakopee to Fort Ridgely. The Red river is
navigable above (south of) Pembina 400 miles by its course, while the
distance from the internal line by the river to Lake W innipeg is 175
miles; total distance navigable by small steamers, 575 milee. To this
and 350 miles for the navigation o f the Sheyenne, Red Lake river, and
Assiniboin, (its principal tributaries), and the river coast o f the Red river
valley, accessible by steamers, will be found to exceed nine hundred miles.
2. Lake W innipeg is about two hundred and fifty miles in length, but
of unequal breadth. Its area cannot be less than that of Lake Erie, but it is
far more diversified by islands and headlands. The western bank is
alluvial, resting on limestone, while the numerous bays o f its eastern shore
develop the gneiss, granite, and trap rock o f the primary formation. The
lake is not deep, but with no shallows obstructive to navigation.
3. From a point near the northwestern angle o f Lake W innipeg, the
great navigable channel of the Saskatchewan, divided into two arms at
latitude 5 3 ° and longitude 10 6 °, may be ascended by steamers to Fort
Edmonton, on the north branch, and to Chesterfield House or Old Bow
Fort, on the south branch, in close proximity to the Rocky mountains.
The rapids o f the Saskatchewan, near the mouth o f the river, can hardly
be said to interrupt navigation. Open-loaded boats have been tracked
(drawn with a rope by men on shore) over the most violent portions of
the rapids, the respective distances being one mile and a quarter of a mile,
while, for descending boats, there is no difficulty. Loaded boats run the
rapids with safety at every stage of water. There is abundant testimony
that the valley o f the North Saskatchewan, in its entire length, is so
superior for the purpose o f agriculture to any other traverse o f the west­
ern plains, that it has received and fully merits the designation o f the
“ Fertile Belt.” The regions adjacent to Fort Pelly, Carlton House, Fort
Pitt, and Edmonton House— well-known points in a general northwestern
14
VOL. L V -----N O . III.




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Trade with British America.

[September,

direction from Fort Garry— are remarkably well adapted to the cultiva­
tion o f grain and the sustenance of cattle. The scenery o f the North
Saskatchewan is fully equal to that of the Mississippi between Galen and
the Falls o f the St. Anthony.
The present agriculture o f Selkirk confirms the evidence, from a variety
o f sources, that the districts west and northwest o f the Red river valley
are well adapted to settlement. For the production o f wheat, barley, rye,
oats, peas, potatoes, v. getables, grass— whatever is grown in Minnesota,
except maize— the region in question will be unsurpassed by any other
area o f similar extent on the continent.
The eastern Piedm ont o f the Rocky mountains, the source of the
Saskatchewan, has been recently visited by Pallisser, Hector, Milton, and
other tourists, who confirm the glowing description o f the earliest explorer,
De Smet, the devoted Catholic missionary to the Indians of Oregon.
His “ Oregon Missions ” is a publication o f much interest, consisting of
letters to his superiors; and a portion o f this volume narrates his explora­
tions and adventures in the Saskatchewan valleys o f the Rocky mountains.
In September, 1 845, he left the source o f the Columbia river in latitude
5 0 °, and crossed the Rocky mountains, descending their eastern slope in
latitude 5 1 °. H e entered, on the 18th o f September, “ a rich valley,
agreeably diversified with meadows, forests, and lakes, the latter abound­
ing in salmon trout.” This was a mountain valley, however, and it was
not till three days afterwards that he reached Bow river, on the South
fork o f the Saskatchewan. Thence he continued northward, noticing sul­
phurous fountains and coal on the Red Deer, a branch o f the Bow river.
Descending the valley o f the Red Deer, which is also described in very
glowing terms, at length he emerged upon what he described as “ the
vast plain— the ocean o f prairies.” On the evening of the same day, the
missionary reached and was hospitably received at the Rocky Mountain
House, latitude 5 3 ° and longitude 1 1 5 °, and on the 3 ls t of October
started for another journey on the plains ; but, after two weeks’ absence,
was compelled to seek refuge from the approach of winter (then the mid­
dle o f November) at Edmonton House, on the Upper Saskatchewan.
From this shelter he thus writes in general terms : “ The entire region
in the vicinity o f the eastern chain o f the R ocky mountains, serv­
ing as their base for thirty or sixty miles, is extremely fertile, abound­
ing in forests, plains, prairies, lakes, streams, and mineral springs. The
rivers and streams are innumerable, and on every side offer situations
favorable for the construction o f mills. The northern and southern
branches o f the Saskatchewan water the district I have traversed for a
distance o f about three hundred miles. Forests o f pine, cypress, thorn,
poplar, and aspen trees, as well as others o f different kinds, occupy a large
portion o f it, covering the declivities o f the mountains and banks o f the
rivers. These originally take their rise in the highest chains, whence
they issue in every direction like so many veins. The beds and sides of
these rivers are pebbly and their course rapid, but as they recede from the
mountains they widen, and their currents lose something o f their impetu­
osity. Their waters ate usually very clear.
The country would be
capable o f supporting a large population, and the soil is favorable for the
production o f barley, corn, potatoes, and beans, which grow here as well
as in the more southern countries.




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“ Are these vast and innumerable fields o f hay forever destined to be
consumed by fire or perish in the autumnal snows ? H ow long shall
these superb forests be the haunts o f wild beasts? And these inexhausti­
ble quarries, these abundant mines o f coal, lead, sulphur, iron, copper,
and saltpetre— can it be that they are doomed to remain forever inactive?
N ot so. The day will com e when some laboring hand will give them
value; a strong, active, and .enterprising people destined to fill this spaci­
ous void. The wild beasts will, ere long, give place to our domestic
animals; flocks and herds will graze in the beautiful meadows that bor­
der the numberless mountains, hills, valleys, and plains o f this extensive
region.”
Twenty years later, in 1865, the American Territory o f Montana adjoins
the region which excited the enthusiasm o f D e Smet. Its population of
25,000, to be increased during 1866 to 50,000, have been drawn to the
sources o f the Missouri by discoveries o f gold and silver mines close to
the international border, and rumors o f gulches and ledges in the Saskatch­
ewan district, yielding even greater prizes to the prospecter, are already
rife, and will soon precipitate “ a strong, active, and enterprising p eop le”
into “ the spacious void.” W hat is called the Americanization o f the
Red River settlements has been slow, although sure, since the era o f steam
navigation, but the Americanization o f the Saskatchewan will rush sud­
denly and soon from the camps o f treasure-seekers in M ontana.
TH E

A T H A B A S C A D IS TR IC T.

The limit o f successful agriculture in the northern temperate zone
should be carried considerably beyond the Saskatchewan valley, especially
near the R ocky mountains. Sir Roderick Murchison, in a recent address
before the London Geographical Society, represents this chain o f moun­
tains to be greatly depressed in high northern latitudes, and indeed seve­
ral o f the tributaries o f the Mackenzie have their sources on the Pacific
slope, and wind through the mountains before falling into the great Arctic
river. The mountain valleys o f the Peace and Liard rivers, latitude 5 6 n
to 60 °, are thus influenced by the Pacific winds, and wheat and other
cereals are successfully cultivated. Sir Alexander Mackenzie describes,
under date o f May 10, the exuberant verdure o f the mountain valleys—
trees about to blossom, and buffalo attended by their young. During an
inquiry in 1858 by the English House o f Commons into the situation o f the
territory o f the Hudson’s Bay Company, similar statements were elicited.
JJr. Richard King, who accompanied an expedition in search o f Sir John
Ross, as “ surgeon and naturalist,” was asked what portion o f the country
visited by him was valuable for the purpose o f settlement. In reply he
described “ as a very fertile valley a square piece o f country ” bounded
on the south by Cumberland House, and by the Athabasca lake on the
north. His own words are a3 follows : “ The sources o f the Athabasca
and the sources o f the Saskatchewan include an enormous area o f country,
It is, in fact, a vast piece o f land surrounded by water. W hen I heard
Dr. Livingston’ s description o f that country, which he found in the interior
of Africa within the equator, it appeared to me to be precisely the kind
of counrry which I am now describing. It is a rich soil, interspersed
with well-wooded country, there being growth o f every kind, and the




s

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Trade with British America.

[September,

whole vegetable kingdom alive.” W hen asked concerning mineral pro­
ductions his reply w as: “ I d o not know o f any other mineral except
limestone ; limestone is apparent in all directions. * * * The birch,
the beech, and the maple are in abundance, and there is every sort o f
fruit.” W hen questioned further, as to the growth o f trees, Dr. K ing
replied by a comparison “ with the magnificent trees around Kensington
Park in London. He described a farm near Cumberland House under
very successful cultivation— luxuriant wheat, potatoes, barley, pigs, cows,
and horses.
In 1862 the tributaries o f the Saskatchewan and Peace rivers, on the
eastern flank of the Rocky Mountains, were discovered to be auriferous. A
small emigration from Selkirk has been attracted by the discovery, but
larger columns o f immigrants will probably move fram the gold districts
o f British Columbia on the west, and o f Montana on the south. The
placer mining on the north Saskatchewan has hitherto averaged $5 to $10
per day.
SO U RCES

O F TH E

C O LU M B IA .

Until very recently— until the discovery o f the Big Bend and K ootonais gold-fields in 1 8 6 6 — I suppose no portion of the continent was so
little known as the district watered by the upper Columbia and its tribu­
tary, the McGillivray or Flatbow river. David Thompson, surveyor of the
Hudson Bay Company, in 1807, selected the source o f the Columbia river
as a site fo r a trading post with the Kootonais or Flatbow Indians. Since
that date these Indians have made sensible progress to civilization under
the influence o f the Oregon missions, as also have other more southern
tribes on the western slopes o f the Rocky Monntains. Indeed, the
“ Relations” o f their missionary Bishop, Father D e Smet, constitute a
most glowing sketch o f the oval district between Flatbow River and the
upper Columbia, and which must have an extent o f 20,600 square miles.
I select some passages of description by D e Smet, after passing north of
the boundary in latitude forty-nine degrees:
“ Advancing toward the territory o f the Kootonais, we were enchanted
with the beautiful and diversified scenery. * * * An extensive plain
at the base of the Portage mountain (probably near the western extremity
o f the Kootonais Pass) presents every advantage for the formation o f a
city. The mountains surrounding this agreeable site are majestic and pic­
turesque. They forcibly recalled to my memory the M apocho mountains
that encompass the beautiful capital o f Chili, (Santiago.) * * * The
quarries and forests are inexhaustible, and, having remarked large pieces
o f coal along the river, I am convinced that this fossil could be abund­
antly procured. Great quantities o f lead are found on the surface o f the
earth, and from the appearance o f its superior quality, we are led to be­
lieve that there may be some mixture o f silver. *
*
* After a few
days’ journey we arrived at the Prairie du Tabac, the usual abode o f the
Kootonais. Their camp is situated in an immense and delightful valley,
hounded by two eminences, which, from their gentle and regular declivity
appear to have originally bounded an extensive lake. * * *■ Thence
I journeyed on towards the sources o f the Columbia. The country we
traversed was highly picturesque, and agreeably diversified by beautiful
prairies, smiling valleys and lakes, surrounded by heavy and solemn pines,




\

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gracefully waving their flexible branches. W e also crossed dark alpine
forests, where the sound o f the axe has never resounded. * * * Onthe 4th o f September I found m yself at the source o f the Columbia.
“ W hen em igration, accompanied by industry, the arts and sciences,
shall have penetrated the numberless valleys o f the R ocky Mountains, the
source o f the Columbia will prove a very important point. The climate
is delightful; the extremes of heat and cold are seldom known. The
snow disappears as fast as it falls; the laborious hand that would till these
valleys would be repaid a hundred-fold. Innumerable herds could graze
throughout the year in these meadows, where the sources and streams
nurture a perpetual freshness and abundance. These hillocks and declivi­
ties of the mountains are generally studded with inexhaustible forests, in
which the birch tree, pine o f different species, cedar and cypress abound.
*
s st 'pj|e advantages nature seems to have bestowed on the source
o f the Columbia will render its geographical position very important at
some future day. The magic hand of civilized man would transform it
into a terrestrial paradise.”
B R IT IS H CO LU M B IA A N D V A N C O U V E R ’S IS L A N D .

The foregoing description o f the climate and other natural features of
the upper Columbia country is applicable to the valleys o f the lower
Frazer River, and its tributary, the Thompson River. In regard to the
climate of the Pacific provinces an intelligent correspondent o f the Toronto
Globe says; “ W hile Cariboo and the upper country generally is probably
as cold in winter as Canada, the district from Vancouver’s Island to the
western foot o f the Rocky Mountains, including Victoria, {the commercial
town o f Vancouver’s Island) New Westminster (the capital o f British
Columbia,) the lower valley and delta ol the Frazer river, and the South­
ern inland part o f British Columbia, has the best climate beyond all com ­
parison to be found in British America— free from extremes o f heat and
cold, not warm enough to enervate nor so cold as to cra m p; moist and
mild in winter like the English climate. Roses bloom in open gardens on
Christmas D ay, and pansies, daisies, and mignonette flower in January.
Gardening begins in February, and the spring is a long and temperate
season. The summers are warmer and brighter than in England. All the
conditions o f climate are favorable to health and physical strength, and o f
equal advantage to agriculture.”
Vancouver’s Island, with many open districts suitable for cultivation, is
rich in coal, forests o f pine, and fisheries, and is destined to a prosperity
quite similar to that o f Nova Scotia. The writer in the Globe, a resident
of Victoria, claims that the settlements, both English and American, upon
Puget’s Sound, with their inexhaustible supplies o f coal, timber and iron
will become the leading stations o f the Pacific coast for the construction
and equipment o f ships, and will possess great advantages in respect to
manufactures. The Rocky Mountain mines in British Columbia, especially o f gold and silver, at Cariboo, latitude 54°, B ig Bend o f Columbia
latitude 52°, and the Kootonais valley, latitude 5 0 °, are fully equal in pro­
ductiveness to the mineral districts o f Montana, which are unsurpassed in
Californian or Australian experience.
The population o f British Columbia was 11,405 in 1863, and may be
15,000 in 1866. The estimated revenue for the present year is $600,000




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Trade with British America.

[September)

— from the following sources: customs, at an average import duty o f 15
per cent., $ 3 2 0 ,0 0 0 ; road tolls, $ 9 5 ,0 0 0 ; miners’ certificates and mining
receipts, $55,000 ; spirit licenses, $30,000. The public debt o f the colony in
1 863 was $600,000, at six per cent, interest. The finances o f Vancouver’s
Island are in no better condition. The expenditure for a government o f the
population o f 6,000 exceeds $200,000 per annum, which is collected mostly
by direct taxation, no customs duties being imposed. A union o f the prov­
inces will soon be effected, when it is hoped that these expenditures will be
reduced.
With this cursory review o f the relations o f the United States and
British America, it is evident that both communities are equally interested
in two great objects : 1. An ocean navigation from the G ulf o f St. Law­
rence to Lakes Superior and Michigan ; and, 2. An international railroad
from Halifax to the N or h Pacific coast, on a route central to the forests
o f New Brunswick, Maine and Canada, the mineral formation o f Lake
Superior, the wheat-growing plains o f Minnesota and the Saskatchewan
valley, and the gold districts o f British Columbia.
The present situation
o f these two great interests will be briefly considered.
N A V IG A T IO N

O F TH E

ST . L A W R E N C E .

The River St. Lawrence, as the outlet o f the great lakes, drains an area
of 600,000 square miles, o f which 250,000 square miles belong to the
United States.
The navigation o f the St. Lawrence is improved by seventy-two miles o f
ship canals— forty-three between the Atlantic and Lake Ontario, twentyeight by the Welland canal, connecting Lakes Ontario and Erie, and one
mile at Sault St. Marie, reaching Lake Superior. The Superior ship canal
aided by the Government o f the United States, is the only adequate struc­
ture o f the kind. The size o f its locks is 350 feet long, 70 feet between
the quoins, and 12 feet in depth. The problem, o f which every northwest­
ern State ardently seeks the solution, is such immediate construction o f
new or enlargement o f existing- canals as will pass vessels o f fifteen hund­
red tons burden without breaking bulk, from the G ulf o f St. Lawrence or
the harbor o f New Y ork to Chicago or Superior. A t present, the
Superior oanal is alone sufficient, as the W elland can only pass a vessel
o f 400 tons, and the St Ltwrence canals can pass a vessel o f only 300
tons. The New York canals are o f less capacity.
The movement through the W elland canal shows the proportions in
which the United States and Canada share the advantage o f that impor­
tant communication with the upper lakes. In 1863 there passed 3,474
American vessels, tons 808,289 ; 3,425 Canadian vessels, tons 521,808.
In 1864-5, this comparative movement was as follows ; 2,506 American
vessels, tons 542,245 ; 3,841 Canadian vessels, tons 593,561.
The necessity o f bringing the ocean vessels o f all nations to the North­
west will hardly be disputed, when the progress o f the lake States in the
production o f breadstuff's and provisions is considered.
In 1850 the lake States produced forty millions o f bushels o f wheat ;
in 1860, eighty-eight millions. In 1850 their production o f corn was
one hundred and eighty-five m illions; in 1860, three hundred and nine­
teen millions. A t the same rate o f increase, the next ten years will bring
them to the production o f nearly tw o hundred millions o f bushels o f




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wheat and six hundred millions o f bushels o f corn. The provision mark e shows the same wonderful results. The number o f hogs slaughtered
at Chicago in 1860 was 4 0 0 ,0 0 0 ; in 1863 the number had risen to
1.7 00.00 0. o f cattle, 177,000 in 1860, and 344,000 in 1863. In the
year 1859 the exports o f pork in boxes, or “ cut meats,” were only
9.000.
000 pounds. In round numbers they rose to twenty millions in
1860, to seventy millions in 1861, to one hundred and thirty millions in
1862, and three hundred millions in 1863, chiefly from the northwest.
For the movement to eastern and European markets, o f the present and
prospective bulk of breadstuffs and provisions, the means o f transporta­
tion must be greatly enlarged. From actual experience, derived from
shipment o f Indian corn at Chicago for Liverpool, it is shown that the
freight charges often cover seven-eights o f the value o f a bushel o f corn
at Liverpool. M ore than one-half o f the cost of wheat is also covered
by charges o f transit. The Chicago Board o f Trade have expressed the
opinion that the enlargement o f the W elland and St. Lawrence canals, as
above indicated, would reduce the cost o f grain transportation fr
Chi­
cago to Liverpool fully one half— to ten shillings per quarter, or to thirty
cents per bushel.
It has been stated that Great Britain imported from the United States
during the years 1801, 1862 and 1863 breadstuffs to the value o f l\2,643,918 sterling, and that the transit expenses were 18.826,351 sterling,
the original cost realized at Chicago being only 13,817,069.
The burden now imposed upon western producers, and the relief which
would be experienced if the marine o f the world could reach Chicago
through the lakes, as readily as European ships reach Ode?sa or Constan­
tinople through the Mediterranean, was most clearly and forcibly illus­
trated by Mr. Duncan Stewart, o f Detroit, at the commercial convention
held July, 1865, in Detroit. “ Some years ago,” he said, “ the farmers
in certain portions o f the west could not obtain over eight cents per
bushel for their corn. Some professors o f political economy say this was
the result of a great crop, and nobody to eat it. This is a grave mistake.
There were hungry men enough to eat up the whole o f it. Nobodv to
eat! The want o f transportation facilities ate it all up. That year for­
warders got, in many instances, twenty cents per bushel from Chicago to
Buffalo, and the canal rates rose as high as twenty-five cents from Buffalo
to New York. In plain English, the farmer o f Illinois had to give the
carrier the price o f five and a half bushels of his corn to get him to carry
one bushel from Chicago to New York, a distance of fifteen hundred
miles by water.
Twenty-five cents, including canal tolls, would have
laid the same corn down in Liverpool had there been a chance to navigate
the St. Lawrence with vessels o f one thousand tons or upwards, and the
owner o f the craft would have been richly remunerated at that price; but
on top o f the forty five cents to New York from Chicago were the charges
at that port, and another charge o f twenty-five cents to cross the ocean,
making the charge from Chicago to Liverpool not less ,han sixty seven
cents per bushel, when it would never have exceeded thirty cents had the
right kind of vessels been able to pass down the St. Lawrence. This
would have enabled the farmer to get forty-five cents for his corn instead
o f eight eents per bushel. W ith sixty bushels to the acre the amount
secured in the one case was four dollars and eighty cents ; in the other




Trade with British America.

208

[September,

it would have been twenty-seven dollars. This is no fancy sketch ; it is a
positive fact.”
Mr. Stewart on the same occasion also observed : “ W ith deep water
down the St. Lawrence no interest will be more benefited than the lumber
interest. W ith boundless and almost inexhaustible forests o f valuable
timber, pine is the only kind that is o f any present value. Let ships o f
one thousand or fifteen hundred tons load at the wharves o f our lake cities
and, as i f by magic, oak, black walnut, white wood, maple o f all kinds,
white ash, tamarack and spruce, would at once become ten times more
valuable than they are at present. The cabinet-makers o f Europe would
furnish a market for your fancy w oods; the W est Indies would take every
oak slave you could turn out, sending back in return her sugar, molasses,
and other rich products, which being purchased from first hands, and
landed without any extra charges but the freight at your own doors, would
enable our merchants to sell these products at greatly reduced rates,
thereby adding to the comfort and happiness of the great mass of the
people. The railways o f Great Br tain would give you a limitless market
for your spruce and tamarack o f small growth fo r tie s ; and the wealthy
cities o f London, Liverpool, Manchester, Glasgow, Dublin, Bristol and
Birmingham would become competitors with Chicago, New York, and
Boston for your best qualities of white pine. An open market with all
the world will pay the owners o f timber lands better than a limited home
m arket; and with the class o f vessels named to carry the products of our
forests to foreign lands, the rates o f would be as low to any o f the ports of
Great Britain as they now are from any given point west o f New York or
Boston, while the prices to he obtained abroad would be much better titan
attainable in either of these markets.”
O f the Canadian canals the Welland is o f the most importance to
American commerce, the transportation for 1 8 6 4 -’ 5 having been returned
as follow s:
T on s,

From
From
From
From

Canadian to Canadian ports.
Canadian to American ports.
American to Oanaaian p o rts .,
American to American ports

l y w,4 i s i

] 56,96
274,94lf
254,557*

Total

885,874

O f this aggregate 685,157g- tons was from the west to the east, and
5^9,499 tons were from American ports.
The trade o f the United States through the St. Lawrence from 1861 to
1865 is thus stated in the Canadian trade returns:
F o r U n ited States.

1861 ...................... .......................................................
1862
.......................................................................
186 8 ................................................................................
1864 (h a lfy e a r ) ..........................................................
1864- 65 .........................................................................

$522,514
490,298
615,245
282,667
289,685

F r o m U n ited States

$8,506,511
5,198,920
2,907,818
507.24S
4,714 629

The American trade through the St. Lawrence was about 6 per cent, of
the commerce by that channel.




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IN T E R N A T IO N A L R A I L W A Y .

In the plan o f provincial union proposed at Quebec, October 10, 1S04,
it is stipulated that “ the federal government shall secure, without delay
the completion o f the intercolonial railway from Rivie-e du Loup, through
New Brunswick, to Truro, in Nova Scotia.” Its estimated cost is §17,500,000. From Riviere du Loup to Ottawa, the capital o f Canada, there is
communication by railway.
W ill England aid bv imperial guarantee the immediate construction o f
a railroad from Ottawa, by way o f Fort Garry and the valley o f the Sas­
katchewan river, to the Pacific coast ? Or will the provinces, with or
without the aid of England, undertake such a continental highway?
The destiny o f British America is involved in the extension o f an ocean
coast to the western limits o f the great lakes, and a railway from Halifax
to the capital o f the confederation, and thence exclusively on the soil of
the confederation, to the North Pacific coast. The adequate improve­
ment o f the St. Lawrence and W elland canals (without assuming the
Ottawa and Georgian bay projects) involve an expenditure o f §20,000,000 and a St. Lawrence and Pacific railway, even if aided by liberal
allotments o f land along its line, will require, at this time, a government
subsidy of §100,000,000. W h o anticipates that England will assume any
material portion of such obligations and the proposed federal government
of the provinces, will doubtless regard the promised communication
between Halifax and Quebec as the utmost possible limit o f its railway
liability, at least for this century. The language o f the Quebec conference,
as to communications with the northwest and the improvements required
for the development o f the trade o f the great west with the seaboard, is
far short o f a pledge o f public action. True, a certain degree o f interest
is expressed in these ob jects: they are “ regarded by the conference as su b­
jects o f the highest importance to the federated provinces, and shall be
prosecuted at the earliest possible period that the state o f the finances
will perm it;” and in another place there is a provision that “ the North­
west Territory, British Columbia, and Vancouver shall be admitted into
the Union on such terms and conditions as the parliament o f the federated
provinces shall deem equitable, and as shall receive the assent o f Her Ma­
jesty ; and in the case o f the province o f British Columbia or Vancouver
as shall be agreed to by the legislature of such province.”
All o f which
seems quite inadequate when such immense resources might be brought
into the circle o f the world’s activities if a policy was at once inaugurated
ample to consummate the construction o f a national highway from ocean
to ocean between the latitudes o f 4 5 ° on the Atlantic and 5 5 ° on the
Pacific, through the teeming belt o f settlements which would follow up„n
its track.




210

The Amendatory Tarriff Bill.

[September,

THE AMENDATORY TAR IFF BILL.
B elow we give a copy o f the tariff bill passed at the session o f Congress just ad­
journed, and approved by the President July 28 :
D epartment of S tate,
)
W ashington, Aug. 3, 1866. J
A n Act to protect the revenue, and fo r other purposes.
Be it enacted by the Senate and House o f Representatives o f the United States o f
America, in Congress assembled. That from and after the tenth day o f August, eigh­
teen hundred and sixty six, in lieu o f the duties now imposed by law on the articles
mentioned and embraced in this section, there shall be levied, collected, and paid, on
all goods, wares, and merchandise imported from foreign countries, the duties here­
tofore [hereinafter] provided, viz :
On cigars, cigar, ties, and cheroots o f all kinds, three dollars per pound, and. in
addition thereto, fifty per centum ad valorem: Provided, That paper cigars and cigar­
ettes, including wrappers, shall be subjected to the same duties as are herein imposed
upon cigars ; And provided further, That on and after the first day o f August,
eighteen hundred and sixty-six. no cigars shall be imported unless the same are packed
in b< xes o f not more than five hundred cigars in each oox ; and no entry o f any imported
cigars shall be allowed o f less quantity than three thousand in a single package ; and
all cigars on importation shall be placed in public store or bonded warehouse, and
eh dl not be removed therefrom until the same shall have been inspected and a stamp
affixed to each box indicating such inspection, with the date thereof. And the Secre­
tary o f the Treasury is hereby authorized to provide the requisite stamps, and to
make all necessary regulations for carrying the above provisions o f law into effect.
On cotton, three cents per pound.
On all compounds or preparations o f which distilled spirits is a component part of
chief value, there shall be levied a duty not less than that imposed upon distilled
spirits ; Provided, That brandy and other spirituous liquors may be imported in casks
or other packages o f any capacity not less than thirty gallons; and that wine in
bottles may be imported in boxes containing not less than one d- zen bottles o f not
more than one quart each ; and wine, brandy, or other spirituous liquor imported into
the United States, and shipped after the first day o f October, 1866, in any less quantity
than herein provided for, shall be forfeited to the United States.
S ec. 2. And be it further enacted, That the second proviso in section four o f an act
entitled “ An act amendatory o f certain acts imposing duties upon foreign importations,”
approved March thiee, 1865 shall be construed to include any ship, vessel,or steamer
to or from any port in the Sandwich Islands or Society Islan <s.
S ec . 3. And be it further enacted. That so much o f an act entitled “ An act to
authorize protection to be given to citizens o f the United States who may discover
deposits o f guano ” approved August 18, 1856, as prohibits the export thereof, is hereby
suspended in relation to all peisons who have complied with the provisions o f section
second o f said act. for five years from and after the 14th day o f July 1867.
S ec . 4. And be it further enacted, " h a t all laws and parts o f laws allowing fish ng
b unties t vessels hereafter licensed to engage in the fisheries be, and the same are
hereby repealed : Provided, That, from and after the d*te o f the passage o f this act,
vessels licensed to engage in the fisheries may take on board imported salt in bond to
be used in curing fi.-h, under such regulations as the Secretary o f the Treasury shall
prescribe, and u. on proof that said salt has been used in curing fish, the duties on
the same shall be remitted.
S ec. 5. And be it further enacted. That, from and after the passage of this act, all
goods, wares, or merchandize arriving at the ports o f New York, Boston and Portland,
or any other p«-rt o f the United States which may be specially designated by the
Secretary o f the Treasury, and destined for places in the adjacent British Provinces,
or arriving at the port o f Point Isabel, Texas or any other poit o f the United States
which may be specially designated by the Secretary of the Treasury, and destined
for places in the Republic o f Mexico, may be entered at the custom-house and conveyed
in transit through the territory o f the United States without the payment o f duties,
under such rules regulations and conditions for the protection o f the revenue as the
Secretary o f the Treasury may prescribe.




1866]

The Amendatory Tariff B ill.

211

S ec. 6. And be it further enacted, That imported goods, wares, or merchandize in
bond, or duty-paid, and p rod u ce or manufactures o f the United States, may, with the
consent o f the proper authorities o f the provinces or republic aforesaid.be transported
from one port or place in the United States to another port or place therein, over the
territory o f said provinces or republic, by such routes, and under such rules, regula­
tions and conditions as the Secretary o f the Treasury may prescribe; and the goods,
wares, and merchandize so transported shall, upon arrival in the United States from
the provinces or republic aforesaid, be treated in regard to the liability to or exemp­
tion from duty, or tax, as if the transportation had taken place entirely within the
limits o f the United States.
S ec. 7. And be it further enacted, That whenever it shall be shown to the satis­
faction o f the Secretary o f the Treasury that more moneys have been paid to the
collector o f customs, or others acting as such, than the law requires, and the parties
have failed to com ply with the requirements o f the 14th and 15th sections o f the act
entitled “ An act to increase the duties on imports, and for other purposes,” approved
June 80th, 1864, aud the Secretary o f the Treasury shall be satisfied tin t said noncompliance with the requirements, as above stated, was owing to circumstances be­
yond the control o f the importer, consignee, or agent making such payments, he may
draw his warrant upon the Treasurer in favor o f the person or per.-ons entitled to the
overpayment, directing the said Treasurer to refund the same out o f any money in the
treasury not otherwise appropriated.
Sec. 8. And be it enacted, That the provisions o f the second, third, and fourth sec­
tions o f the act approved March 2, 1883, entitled “ An act further to provide for the
collection o f duties on imports,” and o f the twelfth section o f the act approved March
3, 1863, entitled “ A n act to prevent and punish frauds upon the reven e, to provide
for the more certain and speedy collection o f claims in favor o f the United States, and for
other purposes,” shall be taken and deemed as extending to and embracing all cases
arising or which may have heretofore arisen, and all suits and prosecutions heretofore
brought and now pending, or which may hereafter be brought against any officer o f
the United States or other person by reason o f any acts done or proceedings had by
such officer or other person, under authority or color o f the act approved March 12,
1863, entitled “ An act to provide for the collection o f abandoned property, and for the
prevention o f frauds in insurrectionary districts within the United States,” or the act
approved July 2, 1864, entitled “ An act in addition to the several acts concerning
commercial intercourse between loyal and insurrectionary States,and to provide for the
collection o f captured and abandoned property, and the prevention o f frauds in States
declared in insurrection.” Provided, That such acts done or proceedings had under the
two acts 1 st aforesaid, or under color thereof, shall have been done and had under the
authority or by the direction o f the Executive Government o f the United States. And
provided further. That when a recovery shall have been, or shall hereafter be had in
any such su itor prosecution brought, or which may hereafter be brought, as aforesaid,
the payment o f the amount recovered, as provided for in the said twelfth section o f
the act approved March 3, 1863, aforesaid, shall be made out o f the moneys arising
and obtained from the proceeds o f sales and leases and fees collected and paid over
to the Government under the two acts approved March 12, 1863, and July 2, 1864
aforesaid, in relation to captured ami abandoned property.
S ec 9. And be it further enacted, That in determining the dutiable value o f mer­
chandise, hereafter imported, there shall be added to the cost, or to the actual whole­
sale price or general market value at the time o f exportation in the principal markets
of the country from whence the same shall have been imported into the United States,
the cost o f transportation, shipment, and transhipment, with all the expenses included
from the place o f giow th , production or manufacture, wheth r by land or water, to the
vessel in which shipmients made to the United States; the value o f the sack, box or
covering o f any kind, in which such goods are contained ; commission at the usual rates
but in no case less than two and a half per centum ; brokerage, export duty, and all
other actual or usual charges for putting up, preparing, and packing for transportation
or shipment. And all charges o f a general character incuired in the purchase o f a
general invoice shall be distributed pro rata among all parts o f such invoice ; and every
part thereof charged with duties based on value shall be advanced according to its
proportion, and all wines or other articles paying specific duty by grades shall be
graded and pay duty according to the actual value so determined : Provided, That all
additions made to the entered value o f merchandise for charges shall be regarded as




212

The Amendatory Tariff Bill.

[September,

part o f the actual value o f such merchar dise, and if such addition shall exceed by ten
per centum the value so declared in the entry, in addition to the duties imposed by
law, there shall be levied, collected and paid a duty o f twenty per centum on such
v a lu e: Provided, That the duty shall in no case be assessed upon an amount less
than the invoice or entered value: Provided, further. That nothing herein contained
shall apply to long com bing or carpet wools costing twelve cents or less per pound,
unless the charges so added shall carry the cost above tw elve cents per pound, in
which case one cent per pound duty shall be added.
S ec. 10 . And be it further enacted. That the second proviso in section twenty-one of
an act entitled “ An act increasing temporarily the duties on imports, and for other
purposes,” approved July 14, 1862, which provides that any goods remaining in
public store or bonded warehouse beyond three years shall be regarded as abandoned
to the government, and sold under such regulations as the Secretary o f the Treasury
may prescribe, and the proceeds paid into the Treasury, be, and the same is hereby
amended t-o as to authorize the Secretary o f the Treasury, in case o f any sale under
the said provision, to pay to the owner, consignee or agent of such goods the proceeds
thereof, after deducting duties.charges and expenses, in conformity with the provision
o f the first section o f the Warehouse Act o f August 6, 1846.
Sec. 11. And be it further enacted, That during [the] period o f one year from the
passage o f this act, there may be imported into the United States, free o f duty, any
machinery designed solely for and adapted to the manufacture o f sugar from beets,
including all the preliminary processes requisite therefor, but not including any
machinery which may be used for any other manufactures.
Sec. 12. And be it further enacted. That upon the reimportation o f articles once
exported o f the growth, product, or manufacture o f the United States, upon which no
iniermd tax has been assessed or paid, or upon which such tax has been paid and re­
funded by allowance or drawback, there shall be levied, collected, and paid a duty
equal to the tax imposed by the internal revenue laws upon such articles.
Sec 13. And be it further enacted, That there shall be established in and attached
to the Department o f the Treasury a bureau, to be styled “ The Bureau o f Statistics,”
and the Secretary o f the Treasury is hereby authorized to appoint a director to super
intend and control the business o f said bureau, who shall be paid an annual salary of
$ 3,500. And it shall be the duty o f the director o f the Bureau o f Statistics to pre­
pare the report on the statistics o f commerce and navigation, exports and imports,
now required by law, to be annually submitted to Congress by the Secretary o f the
Treasury ; and said report, embracing the returns o f the commerce and navigation, the
exports and imports o f the United states to the close o f the fiscal year, shall be sub­
mitter! to Congress in a printed form on or befoie the first day o f December next
succeeding ; and the said director, as soon as practicable after the organization of this
office, shall, under the direction o f the Secretary o f the Treasury, prepare and publish
monthly reports o f the exports and im port- o f the United States, including the quanti­
ties and values o f goods wan housed or withdrawn from warehouse, and such other
statistics relative to the trade and industry o f the country as the Secretary o f the
Treasury may consider expedient. And the director o f the Bureau o f Statistics shall
also prepare an a- nual statement o f vessels registered, enrolled, and licensed under the
laws o f the United States, together with the class, name, tonnage, and place o f registry
o f each vessel, and such other information as the Secretary o f the Treasury may deem
proper to em body therein; and to enable the said director to furnish the information
require:!, the Secretary o f the Treasury shall have power, under such regulations as he
shall prescribe, to establish and provide a system o f numbering vessels so registered,
enrolled, and licensed ; and each vessel so numbered shall have her number deeply
carved or otherwise permanently marked on her main beam ; and if at any time she
shall cease to be so marked, such vessel shall be no longer recognized as a ve »sel o f the
United States. The said director shall also prepare an annual statement o f all mer­
chandise passing in transit through the United States to foreign countries, each descrip­
tion o f merchandise, so far as practicable, warehoused, withdrawn from warehouse for
consumption, for exportation, for transportation to other districts, and remaining in the
warehouse at the end o f each fiscal year. It shall be the further duty o f said director
to collect, digest, and arrange for the use o f Congress, the statistics of the manufactures
o f the United States, their localities, sources ot raw material, markets, exchanges,
with the producing regions o f the country, transportation o f products, wages and such
other conditions as are found to affect their p rosperity; and to aid him in the dis­




Analyses o f Railroad Reports.

213

charge o f these duties, the several clerks now em ployed in the preparati n o f statis­
tics in the Treasury Department, or any bureau thereof, may be placed under his
snpervi-mn and direction ; and, in addition, the Secretary o f the Treasury shall detail
such other clerks as may be necessary to fully carry out the provisions o f this act.
And the expenses o f the Bureau o f Statistics for clerical service, publication of reports,
stationery, books and statistical periodicals and papers required by the Bureau, sin. 11
be defrayed on the order and approval o f the Secretary o f the Treasury, out o f any
moneys in the Treasury not otherwise appropriated. And all letters anil documents
to and from the director o f the Bureau o f Statistics, relating to the duties and busi­
ness o f his office, shall be transmitted by mail free o f postage.
S ko. 14. And be it further enacted, That the Secretary o f the Treasury be authorized
to suspend the collection, in any o f the States heretof re declared in insurrection, o f
the direct tax imposed by an act o f Congress passed August 5th, 1861, entitled *■ An
act to provide increased revenue from imports, to pay interest on the public debt, and
for other purposes,” until January 1st, 1868.

ANALYSES

OF

RAILROAD

REPORTS.

No.

II.

1. N ew Y ork & H arlem R a ilro a d .—I I . Cleveland & Toledo R a ilro a d .—I I I . M a rietta & Cincin­
n a ti R a ilro a d .—I V . M ich igan C entral R a ilroa d .

NEW

YORK

AND

H ARLEM

R A IL R O A D .

The New Y ork and Harlem Railroad, which in connection with the Albany and
West Stockbridge (W estern) Railroad, forms the inland route between N ew York
City and Albany is constituted as follows :
Main L in e—N e w Y o r k C ity to Chatham F o u r C o rn e rs .............................................. m ile s
Branch L in e— M elrose to P o r t M o r r is ..........................................................................................

130.75
2.12

T otal o w n e d b y the c o m p a n y ............................................................ .................................
Albany and W e s t S to ck b rid g e R ailroad— Chatham to E. A lb a n y ......................................

132.87
20.25

T otal ow n ed , leased, and o p e r a te d ....................................................................................
Second track and sid ein g s o n m a m line 45 m iles.

153.12

R O L L IN G

S TOCK.

The rolling stock belonging to the company at the close o f each o f the last ten
fiscal years (Septem ber 30,) is shown in the following table :
L oco^-C ars rated as 8-w h e e l cars—%
m o iiv e s . Pass. M ail, & c. F r e ig ’ t. T otal.
36
65
11
355
431
35
71
10
400
481
33
56
11
377
444
51
33
11
3 65
427

Sept.
3 0 th ,

1856 .
1857..
1858..
1859..
1860..
1861..
1862..
1863..
1864..
1865..

33
34
32
32
35
43

42
36
35
34
40

15
13
13

11
17
23

GO

1INESS O F T H E

377
435
428
4 81
561
587

4:34
484
476
526
618
670

City
C ost o f
cars. r o l’ g s to ’ k.
37
55
42
42
42
42
42
45
69
67

$663,146
624,685
634,727
650.804
650.804
650.804
650.804
811,987
1,105,299
1,469,957

ROAD.

The mileage o f trains, the number and mileage o f passengers, and the tons o f freight
and the mileage thereof in the same years, were as follows :
^-T rain m ile a g e .—,
P a ssen ger. F n ight.

Fiscal
year.
185 5- 5 6
1856185718581859-60
1 8 6 0 - 61
1 8 6 1 -6 2
18621863-

.........................................
57 .....................
5 8 .......................
59 .....................
.........................................
.........................................
.........................................
6 3 .......................
6 4 .......................

1864-65 ............................




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

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

/------- P a s s e n g e r s ------- %
N u m ber.
M ileage.
1 ,2 2 3 ,0 4 8
24,552,577
958,777
2 3 ,2 3 4 ,0 0 0
7 2 0 ,0 7 0
7 1 8 ,9 7 8
7 6 7 ,6 5 2
7 2 6 .3 6 3
6 8 6 ,5 2 3
8 1 1 ,8 7 7
1 ,1 7 7 ,7 8 9
1 ,2 4 3 ,5 4 5

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

,------- F re ig h t.-------- »
T on s.
M ileage.
1 5 9 ,4 0 6
1 5 0 ,8 6 3
1 2 2 ,8 7 1
1 4 5 ,5 7 7
1 5 3 ,5 1 1
1 6 8 ,5 2 7
1 9 8 ,6 6 7
2 3 3 ,9 8 1
2 3 6 .4 6 7
2 3 0 ,6 0 3

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

Analyses o f Railroad Reports.

214

[September,

The following statement classifies the freight carried— the quantities being given
in to n s :
F isca l
year.
1S55-56..........................
1856-57............................................
1857-58 ........................
..............
1858-59........................
1859-60............................................
1860-61 ...................... ..................
1861 62.......................... ..................
1862-63........................ ..................
1863-64............................................
1864-65........................

^ -P ro d u cts o f —\ Y e g e t ’ le O th. agri- M ann- M erchan • Other
dise. articles.
F o re s t. A n im als.
lo o d . cu lt’ l prod, fac.t’ s.
48,308
11,140
j 7,729
6,736
68,562
3,301
3.825
10,089
60,698
13,718
2.545
24,265
35,723
4,3u2
52,478
11,177
2,898
17,576
25,770
9,485
52.332
12,-187
20.422
6,698
4,206
39,948
9.809
53,778
4,186
14.115
8,271
22.113
41.244
7,369
2,496
29,013
12,210
62,053
17.410
87,946
9.086
74,844
16,242
9,833
10.845
34,861
42,956
12,078
70,365
15,9 8
26,620
20,570
40.353
58,077
81,384
14,128
67,859
12,233
17,488
23,901
19,479
11,063
55,12
11,877
106,407
16,920
24,617

In the following statement are given the miles run by the city cars, the number of
passengers carried, and the mileage o f passengers :
F is c a l
year.
18551856185718581859-

M iles run ,— P a ss e n g e rs .— .
b y cars. N u m ber. M ileage.
56
57
58
59
60

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

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

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

1 ,7 4 6 ,9 3 3
V,1 0 0 ,0 0 0
3 ,1 5 0 .0 0 0
5 ,2 3 9 ,6 6 9
5 ,9 8 6 ,4 0 1
REVENUE

F isca l
year.
1 8 6 0 -6 1
1 8 6 1 -6 2
1 8 6 2 -6 3
1 3 6 3 -6 3
1 8 6 4 -6 5

M iles run /— P assengers. — *
b y cars. N um ber. M ileage*
.

,

.
.
.

,

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

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

ACCOU T S .

The gross transportation earnings and expenses, and the profits from operations
were as follow s:
F is c a l
Y ea rs.
18555 6 ...............................................
18565 7 ....................................
18575 8 .................................................
1 8 5 S - 5 9 .............................................. . . .
18596 0 ..................................................
18606 1 .................................................
18616 2 .................................................
18626 3 ..........
18636 4 .................................................
18640 5 ..................................................

,— -------------- G ross earnings— ----------------- , O perating P rofits or
P a ssen ger. F reigh t.
Other.
T o ta l.
e x p e n se s, net rev.
$ 5 2 0 ,5 2 7
4 9 4 ,1 0 3
4 6 2 .5 5 6
4 9 0 ,6 1 6
5 3 3 ,0 9 1
4 4 8 .1 9 3
4 1 1 ,6 8 4
5 1 2 ,1 7 5
7 3 5 ,1 6 1
1 ,0 5 3 ,3 1 4

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

$ 8 3 ,6 2 1
9 6 ,7 4 4
6 9 ,9 9 6
7 9 ,3 8 4
8 0 ,3 4 9
1 6 3 ,1 2 9
168 577
1 9 2 .9 3 1
2 6 0 ,7 0 9
3 6 2 ,7 4 3

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

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

$ 3 2 4 ,8 9 2
186,841
3 58,792
3 80,326
4 33 ,71 6
391,253
4 56 ,69 8
454,771
4 50,889
422,428

The receipts from the N ew Y ork and New Haven Railroad for use o f the road from
W illiam sbridge to the city, are included in “ other ” gross earnings.

T hey have been

as fo llo w s: For the year ending Sept. 3‘)th, 1856, #70,671 ; 1857, #69,4*26 ; 1868,
#5 7,81 4; 1859, #66,93*2 ; I860, #65,096 ;

1861, #132,*220;

1862, #138,000 ; 1863,

#161,451; 1864, #223,175, and 1866, #186,296.
The amount paid from net revenue, on account o f interest on debt, and dividend on
preferred stock in each year has been as follows : In year ending Sept. 30,1856, #307i641 ; 1857, #438,102; 1858, #4 06,7 93; 1859,#388,142; 1860, #392,883 ; 1861, #403,*
818 ; 1862, #415,202 ; 1868, $428,808; 1864, #432,440, and 1865 #420,265.
GENERAL

ACCOUN TS.

The financial condition o f the company at the close o f each fiscal year from 1855-56
to 1864-65, both years inclusive, is shown in the following statement :
[*0181 stock
Real
Extenand
ef-tate
sion
Sept,
Capital
Funded
Floating
30th.
stock. *
debt.
debt.
debts, mortgages, certif’s.
1856
............................. $5,717,100 $8,853,305 $299,352 $ 9 ,8 6 9 ,7 5 7
$ 1 4 4 ,3 1 2 $ 4 6 5 ,( 0 )
1 8 8 ,5 7 3
465,000
1857........................................ 5,717,100
4,060,498 652,439 1 0 ,4 3 0 ,0 3 7
1 8 8 ,5 7 3
465,000
1858 ........................................ 5,717,100
5,151,287 147,641 1 1 ,0 1 6 ,0 2 8
1859 ........................................ 5,717,100
5,353,297
.........
1 1 ,0 7 0 ,3 9 7
1 8 8 ,5 7 3
465,000
1860
............................ 5,717,100
5,372,179
.........
1 1 ,2 8 9 ,2 7 9
2 1 8 ,5 7 3
465,000
1861
............................ 5,717,100
5,537,66 4
43,788 1 1 ,2 9 8 ,5 5 2
2 1 8 ,5 7 3
244,500
1862
..........................
5,717.100
5,565,487
34,708 1 1 ,3 6 7 ,2 9 5
2 1 8 ,5 7 3
221,000
1863........................................ 5,722,850
5,877,518
14,260 1 1 ,6 1 4 ,6 2 8
2 1 8 ,5 7 3
66,510
1864........................................ 6,585,050
6,115,800
................
1 2 ,7 0 0 ,8 5 0
9 8 ,1 8 7
62,50U
1 2 ,6 8 3 ,0 9 5
9 7 ,0 7 4
69,5u0
1865 ........................................ 6,585,050
6,098,045
.................
* Including $1,500,000 prelerred stock




215

Analyses o f Railroad Reports.

1866]

Against which are charged as follows ;—
,------------------------ C on struction accou n t-----------— ------ , Real estate in
R a ilroad .
E q u ip m ’ s.
E x te n sio n .
T o ta l.
in N . Y . & c,
$5,308,373
$663,146
$2,000,000
$8,061,519
$1,090,529
5,487.914
624,585
2,000,000
8,112,499
1,090,529
7,313,339
634,777
2,000,000
9,948,116
1,090,529
7,368,867
656,804
2,000,000
10,019,671
1,090.529
7,371,982
650,804
2,000,000
10,022,786
1,136,849
7,385,739
660,804
2,000,000
10,036,543
1.137,014
7,385,739
650,804
2,600,000
10,036,543
1,137.014
7,389,919
811,987
2,000,000
10,201,906
1,141,237
7,510,789
1,105,299
2,000,000
10,616,038
1,120,822
7,708.611
1,469,957
2,000,000
11,178,668
1,144,181

Sept.
30th.
1856 ..........................................
1857 ..............................................
1858 ..............................................
1859 ..............................................
1860 ..............................................
1861 ..........................................
1862 ..........................................
1863 ............................................
1864 ..........................................
1865 ..............................................

The large increase in cost in 1867-68 is explained by stating that the “ profit and
loss account,” the accumulation o f several years is charged this year to cost o f road.
D E D U C TIO N S .

The following table shows the relation o f the above statements to the mileage o f
the road, v iz .: the cost o f road and equipment per mile, &c ; the earnings, expenses
and f rotits per mile together with the proportion o f expenses to earnings, and the rate
o f ihe profits to cost o f road, &c.— the road from New Y ork to Chatham Four Corners
180.76 miles, being taken as the u n it:
Y ear
ending .
Sept. 39.

C ost o f
road, & c.,
p e r m ile .
$ 6 1 ,6 6 6
6 2 ,0 4 6
7 6 ,0 8 5
7 6 ,6 3 2
7 6 ,6 5 9
7 6 ,7 6 1
7 6 ,7 6 1
7 8 ,0 2 6
8 1 ,4 9 9
8 5 ,4 9 6

.

1 85 6 ................................................
1 85 7 ...................................................
1 85 8 ..................................................
1859
1 86 0 ..................................................
1861
................................
1 86 2 ...................................................
1 86 3 ..................................................
1 8 6 4 ..................................................
1865 ..................................................

,------------ A m o u n ts p e r m ile ------------- , E x p e n s e s P rofits
C ross
O p era tin g
N et
to
to cost
earnings,
expenses.
p rofits, earnings, o f roud.
$ 7 ,9 5 7
7 ,8 5 9
7 ,4 6 4
8 ,2 3 2
8 .7 i l
8 ,7 5 7
8 ,8 2 6
1 0 ,8 0 2
1 4 ,2 2 3
1 9 ,1 9 5

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

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

6 8 .7 7
8 1 .5 6
6 3 .2 5
6 4 .6 6
62 06
6 5 .2 6
6 0 .4 2
6 7 .8 0
7 5 .8 0
8 3 .1 7

4.(13
2 .3 4
3 .6 1
8 .7 9
4 .3 2
3 .9 0
4 .5 5
4 .4 5
4 .2 2
3 .7 8

The profits to cost o f road have been deduced from the nominal cost, exclusive op
real estate.

Had the amount o f stock and debts been taken instead o f this nominal

sum, the profits would have shown at a much lower figure, and, on the average,onesixth lower.

Thus the stock debt in 1865 amounted to $97,003 per mile, while the

cost o f road, <fcc., amounted only to $S5,496 per mile.

Hence the profits to the first

sum, were only 3.33 per cent., while to the latter sum they w ere 3.78 per cent , show­
ing a difference against the company o f 0.45 per cent.

It may be noted, indeed, that

the profits for the last ten years have barely balanced the demands for interest on debt
and dividends on the preferred stock.

Affairs, however, must have materially im ­

proved between Oct. 1, 1865, and July 1 ,1 8 6 6 ,since at the latter date a dividend o f 4
percent was unexpectedly declared on the common stock— the first since 1854.
M ARKET

P R IC E

O F STOCKS.

The Common Harlem Stock has shown the following monthly fluctuations in sale
prices for the six years ending Sept. 30, 1865:
1859-60.
1860-61.
1861-62.
1862-63.
Oct.................................. 8
814 15 ©23)4 10)4@14
20)4@ 25)4
Nov................................. 8)4@ 9K 13 @18
12 @14
18 @ 23
Dec................................. 8)4@ 9)4 12 @14)4 10 @13
21 @ 23)4
Jan .................................. 8)4@ 9)4 15 @16)4 12)4@13)4
27)4® 40
Feb................................. 8K @ 9)4 14 @17
11)4@12X 32 @ 37X
March.............................. 8 @10)4 15)4@16X 12)4@13)4 35 @ 47
April............................... 10)4@14)4 11)4@16)4 12 @13
42)4@ 76)4
M a y ................................ 12 @13)4 10)4@12)4 13 @15
79 @116)4
June ............................... 11)4@12)4
8X@10>4 14 @18)4 97)40109)4
July................................. 12)4@17)4 9)4@12)4 13 @17)4
92 @125
August............................ 16 @20
10)4@11
14J4@1T
125 @179
Sept............................... 16)4 @24 10)4@10)4 IS @22
115 @164)4
Y e a r ...........................................




8

@ 24

8 % @ 2 3 )4

10

@ 22

18

@ 179

1863-64.
1864-65.
80 @145 — @ —
88 @110 — @ —
87)4® 93 — © —
86)4@105 — @ —
102 @1371 — @ —
lOi @152 — @ —
130 @235 - @ —
224 @281 — © —
260 @285 ------------— @ ----------------@ —
— @— — @ —
65 @ 6 5 — @ —
65

@ 285

—

@

—

21fi

Analyses o f Railroad, Reports.

[September,

T h e p r e fe r r e d s t o c k o f th e c o m p a n y h a s f lu c t u a t e d as f o ll o w s :
1S59-60.
O ct......................................... 32 @ 3 3 %
N o v ........................................ 33 @ 3 5
D e c ........................................ 32%'@35
J a n ........................................ 32% @ 34
F e b ........................................ 3 2 % @ 3 4 %
M arch ....................................3 2% @ 36%
A p r il...................................... 35% @ 40
M a r ........................................ 37 @ 4 1 %
J u n e ...................................... 37 @ 4 0
J u l y ...................................... 3S % @ 44%
A u g u s t.................................. 45 @ 51
S e p t ...................................... 43% @ 55

Year............................ 32 @55

1800-61.
3S% @ 58%
31 @ 41
21 @ 8 5 %
36 @ 4 2
84 @ 4 3
38 @ 41 %
28 @ 4 1 %
25 % @ 3 1 %
2 0% @ 26%
22% @ 29%
2 4% @ 26%
25 @ 2 5 %

1861-62.
25% @ 85
29% @ 35
25 @ 3 1 %
29% @ 32
28% @ 3 0 %
30 @ 3 2 %
30 @ 3 2 %
32% @ 37
3 5 % @ 45
S3% @41
35 @ 4 2
: 9 @48%

20%©53% 25 @18%

1862-63.
4 6 % @ 53%
4 2 % @ 53%
50 @ 54%
57 @ 87
6 3 % @ 78
7H %@ 86
81 @ 94
95 @ 120 %
89 @ 108 %
94 @ 120
119 @ 1 5 3
115 @ 151

42%@153

1863-64.
101 @ 130
110
@111
100
@ 100
102
@ 112
109
@ 125
125% @138
—
@—
—
@—
112% @ 112!
—
@ ----------- @ —
—
@—

1864-65.
— @ —
— @ —
— @ —
— @ —
— @ —
— <S —
— @ —
— @ —
— @ —
75 @ 75
80 @ 80
— @ —

100 @138 75 @ 80

From the above it will be seen that the stocks o f this company have not been in
the market since June, 1864.
The New York and Harlem Railroad Company was chartered by the Legislature,
A pril 21,1831, and by subsequent acts was authorized to construct and maintain a rail­
road between New Y ork City arid Albany.

The work o f construction was commenced

in the Fall o f 1831, and the first section o f three-quarters o f a mile, extending from
Prince street to 14th street, was opened for public use N ov . 26, 1832.

The section

from 14th st. to 32d st., about or.e mile, was opened June 10, 1833 ; from .32d st. to
Y otkville, 2 f miles, May 9, 1831 ; from Yorkville to Harlem, 2 j miles, Oct. 26, 1837 ;
from Harlem (o Williamsbridge, 6p miles, Sept. 3, 1842 ; from Williaiuebridge to
W hite Plains, 12 miles, Dec. 1, 1844; from W hite Plains to Croton Falls, 25 £ miles
June 1, 1847 ; and from Croton Falls to Dover Plains, 29 miles, Dec. 81, 1848.

The

section between Prince st. and the City H all was opened May 4, 1839, and from the
City Hall to the A stor House N ov. 26, 1852.

The extension o f the road from Dover

Plains to Chatham Four Corners, (where it connects with the A lbany and W est Stockbridge (W estern) Railroad,) 50^ miles, was completed Jan. 19, 1852

F or the pay­

ment of the construction o f the division above D jver Plains, “ Extension Certificates ”
were issued to the amount o f $2,000,000, payable Feb. 1, 1873, with interest semi­
annually Jan. 1 and July 1.

These certificates constitute afirst lien on the extension.

For the satisfaction o f these certificates the railroad company agreed to supply the
rolling stock for the extension, operate it, and charge therefor the average cost per
mile o f working the whole line, and to appropriate the net earnings o f the extension
toward the payment o f th« interest; and in case such earniDgs should not b8 suffi­
cient to pay such intere it, then the railroad company to apply thereto, if necessary,
three-fourths o f the gross earnings from business over their own road to and from
stations theieou, and from and to stations on the extension ; and in case any deficiency
should then exist, the company to issue new fur the old warrants, bearing seven per
cent, interest, to be paid from the first surplus accruing in the mariner stated after the
paym ent o f warrants falling due or in'arrears.

The railroad company also agreed that

the holders o f the certificates might convert them into the stock o f the company
These certificates have been so converted to the extent o f $1,910,500, the company
holding the certificates as a debt against that portion o f the road for which they were
originally issued.

A s to the interest, the company paid for several years 3.) per cent,

but finally nothing— the construction o f the contract having been made the subject of
litigation.

F ew roads o f the same importance have so brief a history.

Its stocks,

however, have always been dealt in at the New York Exchange, and have generally
been handled for speculative purposes.

Small dividends were paid yearly from 1848

to 1854, but to the close o f 1865 had scarcely averaged one-half o f one per cent.




1806]

Analyses o f Railroad Reports.

through the whole term o f the existence o f the company.

217

In March, 1860, the com ­

mon stock was selling at 8, anti in June, 1861, at 8 f ; but during the speculative
period o f the war it rose to par, and above, and in June, 1864, was cornered up to
286.

Since this period few sales have been made, and the stock is now mainly held

by a single individual, who in July, 1866, paid from one pocket to the other a d ivi­
dend o f 4 per cent from operations never earned from operations.

CLEVELAN D

AND

TO LE DO

R A IL R O A D .

The Cleveland and Toledo Railroad is constituted o f the following two divisions :
N orthern D iv ision —C leveland to S a n d u sk y.................................................................. m ile s
Southern Division^—G rafton (C. C. and C. l i. R .) to T o l e d o . ...................................

60.0
87,5

T ota l len gth o f road o w n e d b y co m p a n y ........................................................................
Cleveland, C olu m b u s & C in cin n ati R a ilroad, fro m G ra fton to Cleveland, leased
($66,000 p e r a n n u m ).......................................................................................................................

147.5
25.8

T ota l len gth o f r o a d op era ted b y c o m p a n y .......... ................. ........................

172.5

The company is now engaged in changing the line o f their road, so as to connect
the southern with the northern division at Elyria, and thus save the expenses o f the
C., C. and C. lease, and give greater facilities to general operations.

A. Union Passen'

ger Depot is also being constructed at Cleveland, which will enable the passenger
trains to pass between Buffalo and Toledo without change.
The equipment o f the road on the first o f May, yearly, for the past seven years, ha9
been as f o ll o w s :
1860.

1861.
32

1862.
32

1863.
32

1S64.
37

1865.
37

12

35
10
12
4
252

35
10
12
4
270
33
90
3

32
8
12
4
313
46
120
3

30
8
12
4
419
87
130
3

28
9
13
4
403
89
146
3

445
112
195
3

423

457

538

693

695

818

L o c o m o tiv e s ............................................. .
Passenger c a r s . . . . „
»..k
Em igrant d o ..................................
Baggage
d o ...................................... ..........
Mail
d o ...................................... .
Freight cars—b o x & s t o c k .................. ..........
do
R a c k ...............................
do
P la t fo r m ..........................
Boarding c a r s .......................................... .

241

T otal c a r s ................ ..........................
O P E R A T IO N S

ON TH E

1865

87
32

7

15
4

ROAD.

The following statements exhibit the m ileage made by engines and cars, the past ea­
ger and freight traffic, and general deductions relating to mileage and charges :
1. Number o f miles run by engines and cars.
Tear ending

Miles by

April 30,
en gin es.
1860 ............................................................................................
1861 ............................ ..............................................................
1862 ......................................................................
610,292
1863 ......................................................................
663,371
1804...............................
768,262
1865 ............................................................................................
1866 ..........................................................................
994,554

,------------- Miles run by cars.------------ s
P a ssen ger.
..............
1.075,154
1,034,044
1,139,259
1,591,208
1,752.653
1,819,706

P reigh t.
........
3,923,571
6.520,775
6,145,262
6,170,208
6,635,072
7,075,916

T o ta l.
4.217,235
4,998,725
6,554.819
7,284.521
7,762,152
7,387.735
8,895,622

2. Number, character and direction of passengers carried :
Tear end’g

,--------- -Eastward —--------,

A pril 30.
T h ro’ .
W ay.
T o ta l.
1860 ..................................... 4.3,929 76,129
120,058
1861 ................................... 45,313)4 62,531)4 127,845
1862 ........................................ 46,654
82,621)4 129,175)4
1863 .......................................... 64,643 08,096
162.739
1864 .......................................... 82,003 142.609
2,4,672
1865 .................................... 122,008
161,067
286,075
1866 .........................
85,358 185,219 310,573
V O L . L V -----N O .

III.




15

,----------- Westward--------- o
T h ro’ .
62,201 K
55,345)4
49,059
60,193
93.130
135,772
136,504

W ay.
74,219
84,573)4
79.195)4
100,327
146,546
165,325
200,407

T o ta l.
126,420)4
139,819
128.554)4
161,120
239.676
300.097
336,911

Both
W ays.
246,478)4
267,664
257,430
323,859
464,348
586,173
607,489

218

Analyses o f Railroad Reports.

[September,

The following table shows the origin o f the passengers— the foreign (or from other
roads), and the lo c a l;
Y e a r end’ g
/— E astw ard— *
/— W e stw a rd — v
A p ril 30.
F o re ig n . L ocal.
F o re ig n . L o ca l,
I860.......................................... 35.709
84,33944 2 4 0 # 82,180
18(51 ................................ . . 31,380
93.465
46,216
93,603
1862 ...................................... 82,821
96,354# 42,058# 86.196
1863 ........................................ 46.443 116,296
52,605 108.515
lb(54.......................................... 63,108 161,564
76,391 163,285
1865 ...................................... 87,427 198, W 8
106,005 194.092
1866 ...............................................................................................................

T o ta l
fo re ign .
79,959#
80,596
74,879#
99.048
139.499
193,432
172,820

T o ta l
F o re ig n &
lo ca l.
local
166,519
246.478#
187.0(58
267,664
182,550# 257,430
224,811
3 3.850
324,849
464,318
392,740
586,712
434,666
607,486

The following shows the total passengers, the equivalent number carried one mile
and through, wi b the average miles travelled by each passenger, with the receipts
from each, and the average receipts per mile travelled :
Y ea r en d ’g
P a sse n g ’ s
A p ril 30.
carried.
1 860 .......................................... 216,478#
1861 ....................................... 267,66.4
1862 ....................................... 257.430
1863 ....................................... 323,859
1864 ....................................... 464,348
1 8,5............................................ 586,172
1 8.0.............................. ............. 607,486

E q u lv ’ t n u m ber carried—. A v . m ile s ^ -A v g . receipts—,
o n e m ile.
T h r o u g h .*
travel. P e r p a s g ’ r. P e r m .
14,S24,632
131.775
60.1
$1 70;2
2.8(5c
1 6 753.553
149.585
62 6
1 65;6
2.70c
15.909.705
142,051
61.7
1 66;0
2.69c
20.650.278
1S4.378
63.7
1 74;3
2.73c
28,498,3(52
254,450
61.3
1 68;8
2.7?c
38.133,340
340,476
65.0
1 87;4
2.88c
37,263.769
311,284
61 .3
I S7;8
3.06c

These tables show a wonderful developm ent o f the pissenger traffic on this road—a
traffic which will probably be largely increased when the additional conveniences at
Cleveland for transfer are com pleted.
3. Quantity (tons) and direction o f freight carried :
Years end’g
,---------- Eastward.---------- , ,---------- Westward.---------- ,
A p ril 30,
1860 ..............................................
1861 .............................................
1862 ........................................
1863 ...............................................
1864 .............................................
1865 .............................................
1866 ..................................................

T h ro ’
W ay.
94,678
54,929
115,312 54,706
152,228 71,090
201,385 73,068
187,019 97.772
159.913 104,036
229.109 71,757

T o ta l.
149,697
170,018
223,418
274,453
2S4.791
203.949
300,866

T h ro’
41,807
49,808
56,399
71T387
92,725
90.983
119,203

W av.
S».5i'9
3",657
31,535
37,963
54,901
55,469
54,154

T o ta l.
71,406
80,465
87,934
10(1,350
147.626
146,452
173,357

Both
wavs.
221,013
250,483
311,252
383,803
432.417
410.401
474,223

T h e f o ll o w i n g s h o w s t h e t o t a l t o n n a g e a n d e q u iv a le n t t o n s c a r r ie d o n e m ile and
th r o u g h ( 1 1 2 m ile s ) , w it h th e a v e r a g e r e c e ip t s fo r e a c h to n an d fo r e a c h to n p e r m i l e :
Y ea rs en d ’g
T o ta l
A p ril 39,
to n n a g e .
1 860 ...................................................
221,013
250,483
1861 ..............................................
1862 .................................................
311,252
1863 ..................................................
383,803
1864 ..................................................
432.417
1865 ..................................................
410.402
474,-23
1846 ..................................................

E q u iv . to n s c a r r ie d ^
O ne m ile.
T h ro n sh .
19,324,697
171,775
22.694,101
202,626
28,687,413
256,138
35,510,471
317,058
37,644,347
336,110
34,791.292
310.6:36
44,328,972
406,869

A v . m is.
carried.
87.4
90.6
92.2
9 2.5
8 7.0
84.7
93.5

/—A v . receipts.—.
P . to n .
P. in.
$1 85:8
2.12c
1 86:3
2.05c
1 85:2
2 05c
2 07:6
2.24c
2 09:8
2.41c
2 45:0
3.89c
2 03:1
2 .8 1 # c

From this, it appears that the freight traffic has more than doubled within the period
included in the statem ent; and, what is evidence o f progress, the last year o f the
series shows the highest results, although the local traffic in that year was a large per.
centage below that o f the next preceding year. The company has joined other reads
in forming a through freight line b tween Chicago and the seaboard via the New York
Central Railroad, which line has added largely to the freight traffic of this road. A aim.
ilar line, to run in connection with the Erie Railroad is proposed.
F IN A N C IA L

RESULTS, YE A R L Y .

The earnings from operations and the working and other expenses, yearly, for the
seven years em braced in the foregoing exhibits o f operations, are shown in the follow­
ing statement.

* Estimated on the distance between Cleveland and Toledo—112 miles.




1860]

Analyses o f Railroad Reports,

219

The earnings have been as follow s:
Y ears e n d 'g
,--------------- P a ssen ger earnings---------------, F re ig h t and
* April 30
F o re ig n .
L ocal.
T o ta l.
m ail earn in gs,
18»50 ................ ......................
$190,821 51 $233,402 36 $421,223 87 $409,047 49
2.10,786 63
252,486 80
453,254 66
466.116 42
1861 ......................................
1862
......................................
175,880 00
251,405 21
427,285 25
579,352 07
1863 ............................................
232,419 66
332,117 16
564,536 82
796,000 44
1S64............................................
196,684 89
587,374 52
984,059 41
907,206 42
1865 ............................................
476,333 44
622,362 21
1,098,695 65 1,00 ,402 99
1866
.............................................................................................
1.223,236 20 1,165,63! 82

T o ta l
e arn in gs.
$833 271 36
919.971 08
1,003.637 32
1.361,537 26
1,691.265 83
2.104.098 64
2,388,868 02

These earnings have been disbursed as follows :
In te re st
Y ears
,--------------------- E x p e n s e s --------------------- ,
D iv id e n d s
Balan ce
end’ g
O perating T a x e -, rents, T ’ i b e fo re
paid on
paid n
carried to
Apr34.
e x p e n s e s . e x tra o rd .,& c. in i. & c iv .
b o n d s.
sto ck , in c o m e a c ’ t
1860
...............................$367,736 50 $120,612 71
$4S8,349 22$268,813 22 $ ................... $76,103 92
1861
............................. 426,015 40
96,368 130
522,383 70 268,953 00
.................... 128,63438
1862 ................................. 460,149 22
91,413 19
551,562 41 269,077 58
100,314 00
82,683 33
133.752 00 311.099 66
1863 ................................. 544,482 49 107.004 98
651,487 47 265,198 13
186 i ................................... 729,272 54 138,2 8 99
867,55150 238,668 91
337,5 22 36 247,523 00
1865................................... 1,080,756 04 188,562 04
1,269.31808 179,869 22
492.642 10 162,269 24
1S66................................... 1,117,074 50 236,076 05
1,353,15055 172,636 22
637,022 00 226,059 25

An extra dividend o f 10 per cent. ($491,326) wa9 paid in August, 1864, and charged
to profit and loss. Since the commencement o f operations to April 30, 1866, sixteen
dividends have been paid, as follows :
1.
2.
3.
4.
5.
6.
7.
8.

A pril, 1854 .................. 5
O ct, 1854.................. 5
A pril, 1855 .................. 5
Oct., 1855.....................4
A p ril, 1856 .................. 4
Oct., 1856 .................. 4
A p ril, 1857 ................ 4
A pril, 1862 .................. 3

p.
p.
p.
p.
p.
p.
p
p.

c ..
c ..
c ..
c ..
c ..
c ..
c ..
c ..

$167,190
167.190
167.190
133.752
133.752
133.752
133.752
100,314

— making a t >tal o f $8,229,156 40.

00
00
00
00
00
00
00
00

I 9.
| 10.
| 11.
I 12.
I 13.
I 14.
| 15.
I 16.

A p ril, 1863.
O ct., 1863..
A p ril, 1864..
A u g ., 1864*
O ct., 1864..
A p ril, 1865..
O ct., 1865..
A p ril, 1866..

. 4
4
4
10
5
5
5
8

p.
p.
p.
p.
p.
p.
p.
p.

c ..
c ..
c ..
c ..
c ..
c ..
c ..
c ..

$133,752
148,912
188,610
491,326
245.768
246.873
249,774
35)7,248

00
00
30
00
42
68
00
00

T he amount for A ptil, 1864, and subsequent dates

include the United States tax.
F I N A N C IA L

CO N D IT IO N O F

COM PANY.

The following is an analysis o f the general account, made up to June 1, y e a r l y :
June 1,
1860.......................
18151.......................................
1862 .................... ................
1863............... . .. ................
1864....................... ................
1865.......................................
18615.......................

F u n ded C on st, tel. B ills
debt. & iron acct. payable,
$3,848,420 $ .......... $286,083
3,850,570
196,414
3,343,800
3,850,595
148,G60
3,343,8110
3,667,595
3,530,000
117,529
2,439,990
4,989
4,654,8110
53,742
2,614,810
136,389
4,690.600
3,742
2,746,280
C apital
s to ck .

Current In co m e
T otal
a c c o u ’ ts. bala'e.
am ount.
$76,463 $305,405 $7,860,182
92,988
12s, 634
7,612,406
74,447
211,318
7,628.820
94,226
522,417
7,810,838
119,760
769,94 » 8.107,008
134,4.55
440,884
8,070.880
111,254
666,943
8,369,819

Against which are charged the following, viz. ;
R eal
t ofSI:ks & bd s
June 1,
R ailroad. E q u ip m ’ t. o f o th . c o ’ s,. estate.
$461,119
$238,239
$36,322
I860 .................................... $6,771,891
483.160
b9,299
29,253
1 8 6 1 ,.,................................ 6,697,178
95.679
504.420
29,812
1863...................................... 6,699,373
34,211
55,025
1863 ...................................... 6,100.495
530.727
693,257
55,025
41,565
1864 ...................................... 6,699,373
72 .449
39,015
56,737
1865 ...................................... 6.699,573
35,115
1866 ...................................... 6,672,157
868,769
57,317

M aterials,
S in k in g b ills, dues, Cash
fund.
& c.
on band.
$60,: 07 $283,056
$5,818
85,469
316,122
15,701
101,578
182,459
15,489
137,212
226.786 1-6,383
172,791
308,534 136,163
197.791
814.303
39,012
221,791
336,058 178,612

The f o llo w in g s h o w s th e d e t a ils o f th e b o n d e d d e b t a t th e c lo s e o f e a c h o f th e y e a r s .
June—In c., Ju n e 1, '63........................... . . .
“
(L loyd s) O ct. 1, ’ 6 2 .................. . . . .
“
2d M ort., N ov. 1, 1862............ . . .
r . N . <£ a —l - t M ort., A ll" . 1, 1863. . . . .
“
2d M o-1., A u g 1, 1863.. . . .
C. & T — I n c , Sept. 1. ’ 63 ................ . . .
“
Inc., (co n v .) Ju ly 1, lb64 . . . .
“
D iv. b on d s, A p ril 1, 1865. . . .




1861.
$44,000
5,000
265,000
521,000
291,300
126,500
596.000
162,770

1862.
$22,000
5,000
221,000
521,000
293.200
104,400
430.000
151,495

1863.
$ ..........

1864.
$ ..........

1865.
$ ..........

439,000
176,500
66,150
288,000
129,215

9,000

3,000

250
286.000
125,740

12,810

1866.
$ ..........

280

Analyses o f Railroad Reports

220

[September,

June—I s t M . (1st D iv .), A p r. 1 , 1SG7...
359,000 299,000
288,000 214,000 229,000 213,000
39,000
25,000
6,001
6,000
6.000
c. & 7 . —I n c ., S ept. 1, ’ 70 ...................... 42,000
June— le t M. (2d l )i v .), D e c. 1, 1872 . . .
263,000 219,000
161,000
161,000 159,000 146,006
C. & 7 ’.— Ss’ k ’g fund, J u ly 1,1885 .........1,178,000 1,645.000 2,677,000 1,802,000 2,205,000 2,081,0(0
“
M ort., Ju ly 1, 1880...................................................................................................................
300,000
T o t a l ........................................................ 3,850,570 3,850,595 3,667,595 2,633,990 2,614,810 2,7 6,280
.............................
R ed em p tion fu n d s ...........................................................................
681,270
194,000
P R O P O R T IO N A L

D E D U C TIO N S .

W e deduce from the foregoing statements as follows, v iz: the cost o f road and
equipment per m ile ; the earnings, expenses and profits per m ile ; and the ratio of
expenses to gross'.earnings, and o f the profits to cost o f road.

In this connection, how.

ever, it is proper to state that the expenses here meant are not only the working
expenses, but include taxes, rents, and all other payments from income, before interest
and dividends.

We give also the per centage o f the surplus, after dividends, to the

stock outstanding :
C o st o f
R .R . & C.
p. m .
$49,058
48,680
48,839
49,252
50,120
50,332
51,125

1860,
1861
1862.
1863
1864

I 860

1866.

9------- A m o u n t p e r m ile ------- , ,— R a tio p e r cen tu m — .
P rofits Surp’ s
E x p ’ ses
G ross
T otal
N et
earn’gs. e x p e n 's . p ro fits, to earn’g s . t o COi-t. to stek
$-.\33S
58.63
4.77
$5,649
$3,311
2.27
56.95
5.53
3.82
3,542
2,695
6,237
3,749
6 25
2.47
6,804
3.055
55.10
47.85
9.77
8.82
4,417
4,814
9,231
51.52
11.14
5.32
11,466
5,882
5,584
11.24
3.46
8,605
5.660
60.32
14,265
13.73
4.67
7,022
56.64
16,196
9,174

The total surplus accumulated in the seven years was $1,234,377 90.

The surplus

at the close o f the fiscal year, 1860 ($76,108 82), was carried to construction, which
leaves $1,158,268 98 to be accounted for.

O f this, the 10 per cent, dividend declared

in August, 1864, took $491,326 00, and the amount to credit o f the shareholders
A p ril SO, 1866, was $666,942 98, or 13.77 per cent, on the present share capital.
P B IC E S

OF TH E

COM PAN Y’ S STOCK.

The monthly range o f the prices at which this stock has sold at New Y ork during
the six years ending with June, 1866, is shown in the subjoined statem ent:
M on th s.
1860-61.
J u ly .................................. 30 @ 3 8 %
A u g .................................. 38% @ 49
S ep t.................................. 4 3% @ 49%
O c t .................................... 31 @ 4 8
N o v .......................... . . . 2 4% @ 85%
D e c .................................. 20 @ 31
J a n ................................. 3 2% @ 37%
F e b .................................. 27% @ 38
Mar.................................. 33 @ 3 7
A p ril................................ 2 2% @ 36%
M a y .................................. 20% @ 25%
J u n e ................................ 2 0% @ 24%

1860-1.
23% @ 33
2 8% @ 30%
29 @ 3 0 K
29 % @ 3 8 %
33 @ 3 8 %
28 @ 3 6 %
33%@,42%
40% @ 46
4 4% @ 47%
40% @ 46
4 1% @ 47%
4 4% @ 49%

1861-2.
1863-64.
1S64-5.
45 @ 49% 109 @ 117
131 @ 144
4 6 % @ 54% 113 @ 1 2 3
125% @134
5 2 % @ 69% 112
@121
108 @ 126
6 7 % © 73 114
@ 120
95 @ 116
6 5 % @ 70% 113 @ 119 % 108 @ 114 %
66 @ 72% 100 @121 107 @ 112 %
7 7 % @ 97 120
@141
108 @ 118
8 0 % © 96% 136% @149% 113 @ 115
9 3 % @ 98% 142
@ 1 5 1 % 91 @111
92% @ 1 0 6 % 135 @157
92 @ 103
108 @ 117
145 @ 154% 95 @ 1 0 3 %
105 @ 1 1 6 % 135 @ 151% 98 @ 105

Tear........................... 20 @49% 23%@49% 45 @117
Dividends are paid in A p ril and October.

107 @157

90 @144

1865-6.
101 @104
96% @102
102 @169
100 ©111
102%@105
102%@115
103 @113%
165 @108%
107 @ 113
99% @106%
103 @105%
104%@107

96%@115

T he history o f the Cleveland & Toledo Railroad Company w ill be found in the
M ag a zin e

for September, 1865, p. 289.

M A R IE T T A A N D

C IN C IN N A T I R A IL R O A D ,

The Marietta and Cincinnati Railroad consists o f a main line and several branches
as follows :

M iles.
M a in lin e —M arietta t o L o v e la n d .................................................................................................................. 173
B r a n ch —H arm ar t o B elprd (U n io n R a ilr o a d ). .
................................................................................
9
'• — H am den to P o rtsm o u th (S c io to and H o c k in g V a lle y R . R . ) .................................. ........
56
“
— M a n ch este r t o H ills b o ro (H ills b o ro an d C incinnati R . R . ) ..............................................
21

Total len gth o f line,




259

Analyses o f Railroad Reports.

221

Since the close o f the last fiscal year the Company have completed an extension from
Loveland to Cincinnati, about 25 miles.

The branches were originally constructed by

separate companies, and subsequently purchased by the Marietta and Cincinnati Com ­
pany.

Hitherto, the Company have used the Little Miami track to carry their cars

into Cincinnati.
The car equipment consists o f 20 passage, 9 baggage, 4 caboose, 200 box, 58 cage,
95 coal, 112 flat, and 7 lim e ; total, 505 cars.

During the year there were built at

the Company’s shops 4 passenger, 3 baggage. 45 coal, 1 lime, 7 flat, and 2 derrick
cars; and there were purchased 2 passenger and 100 box freight ca rs; total, 164 cars
added during the year.

The number o f locomotives on all the lines is 58, o f which 5

were purchased in 1865.
The earnings and expenses for the tw o years ending Dec. 31, are shown in the
following statement:
1864.
$466,913
518,167
23,970
15,316
13,796

P assenger e a rn in g s ..........................................................................................
Freight
“
........................................................................................
Mail
“
...........................................................................................
E xpress
u
..........................................................................................
T elegraph
“
........ ..................................................................................
T otal earnings
O perating e x p e n s e s .

1S65.
74
86
82
80
03

$570,765
592,853
23,737
25,617
11,084

51
21
44
56
56

$1,038,165 25 $1,224,058 28
610,760 11
778,756 08

Balance to p ro fit and loss

$427,405 14

$445,: 02 26

The gross receipts, monthly, from the date o f re-organization (A ug. 15, 1860) to the
close o f 1865, are shown in the following ta b le :
1 86 0.

Jan ..............................
F e b ..........................
M arch......................
A p ril........................

........ ? ..........

J u n e ........................
J u l y ........................ .
A u gu st.................... ...................
Sept . ......................
O c t ................................ ...................
N o v .............................. .................
D ec
......................... ....................
T o ta l.................................

2 2 ,3 3 4 89
4 8 ,3 9 1 18
4 1 .9 1 6 5 5
3 7 ,7 5 0 0 5

1861.
$ 4 0 ,8 7 3
3 4 ,7 7 8
3 8 ,3 2 4
3 3 ,9 9 9
3 1 ,0 2 3
4 0 .2 7 4
4 8 ,7 2 6
3 4.0 71
8 9 ,2 7 5
3 2 ,1 6 4
2 9 .3 5 9
3 6 .8 0 2

1862.
1 86 3.
7 7 $ 3 3 ,9 0 4 0 4 $ 3 8 ,2 0 2 72
1 9 2 6 ,2 5 2 04 5 3 ,7 7 8 25
4 7 2 5 ,8 9 1 2 5 6 0 ,5 4 0 0 8
8 0 3 8 ,5 7 9 40 6 4 ,3 0 5 8 2
5 6 3 2 ,6 6 7 5 4 3 .3 2 5 6 6
8 2 2 9 ,3 8 3 4 8 4 0 .7 0 6 5 0
6 9 3 7 ,2 7 0 8 8 5 8 ,7 0 4 0 7
11 5 6 ,6 8 6 S4 5 2 ,8 6 4 51
91 4 6 ,4 5 2 47 7 7 ,1 1 2 14
6 9 8 1 ,3 2 8 75 8 3 ,0 5 8 71
>2 5 5 ,2 5 7 1 2 7 6 .7 6 3 85
21
4 8 .5 4 3 9 2 6 8 ,8 6 3 0 3

1864.
$ 7 7 ,0 1 0
7 4 ,4 0 8
8 9.9 01
7 2 ,3 3 9
8 3 ,9 9 3
7 8 ,6 9 6
9 1 .8 0 9
9 0 .9 7 2
9 3 ,0 7 7
9 3 ,5 4 5
9 6 .9 0 8
9 5 ,4 5 2

02
67
09
35
30
92
23
33
63
83
02
86

1865.
$ 9 -i.6 7 2
8 7 ,7 9 0
9 3 ,7 6 3
7 8 ,8 0 7
7 6 ,2 4 8
1 0 7 ,5 2 4
1 0 4 ,6 0 8
1 1 5 .1 8 3
1 2 5 ,2 5 1
1 1 6 .4 9 5
1 1 6 .1 4 6
1 0 5 ,7 6 6

29
69
15
0*2
39
72
39
71
92
05
27
68

196,152 42 439,676 04 512,217 73 710,225 34 1,038,165 25 1,224,058 28

The profit and loss account for the two la>t years shows the foil »wing results :
Balance from p reviou s y e a r ............................
Net earnings fo r y e a r .......... .........................
Balance in terest accou n t .................................
Prem ium on sterlin g bon d s s o l d ..................
T otal re s o u r c e s ..........................................
Cash divid en d (3 p. c .) on preferred s to c k
Interest on b on d s and s c r ip ..........................
“
*‘ Ra.tim ore l o a n .............................
New Y o r k oltico e x p e n s e s ..............................
C om pen sation for personal in ju r ie s ............
Rent o f Little M iam i R a ilr o a d ......................
Federal ta x e s . .................. ..............................
State
kt ............ .......................................
Balance to c r e d i t ..............................................
T otal diebu s em eiits............................. .

1864.
$342,464
427,405
45.879
2-,6,779

34
14
58
75

$1,102,528 81
179,974
161,821
1,290
4,081

50
97
00
78

<so*666‘66

10.169 31
9.3 2 49
675,948 76
$1,102,528 81

1865.
$675.! >48 76
445,302 20
14,088 90
$1,135,339 86
23 -,031 99

1,200 00
57
15.821
76.987
83,362
12,579
758,300

30
27
37
90
02
01

$1,135,339 86

It will be seen from the above that several accounts have been disbursed from
profit and loss that properly belong to operating expenses.

These are the rent of the

Little Miami Rai road, Federal and State taxes, and compensation for personal in.
juries.

Deducting these amounts, in 1864 $79,501 60. and in 1865, $138,760 56. the

net earnings carried to profit and loss would have been only $347,903 31 and ?3C6f-




222

Analyses o f Railroad Reports.

[September,

551 64, respectively, instead o f $427,405 14 and $445,302 20, as they appear in the
above account.
The financial condition o f the company as exhibited oa the balance sheets o f De.
cember 31, 1864 and 1865 was as follows :
1864.
$9,1)36,124
162,318
1,820.626
800,000
1,2 6,648
871,914
108,595

M. & C . 11. R. & equipm ent..................................
Union R. II. purchase...............................................
Hillsboro Branch purchase....................................
S< ioto & II eking Valley R.R . purchase.............
Construction—main line........................................
“
—Cine, ex ten sion .............................
Discount on 1st mortgage bonds...........................
Total railroad and equipment. .
Real estate...................................... .
Materials on hand...........................
Bonds and stocks...........................
Cash due from banks and bankers.

19
58
14
00
37
23
58

$ '.4,936,257 09
297.524 79
105,521 05
466,012 42
$15,805,315 35

Total d eb it...............................................................

1865.
$!0,543,f>77
169,238
1,832,799
800,000
1,992,076
1,117.772
195,014

69
58
06
00
23
24
92

$16,650,778
33'i,485
102,188
238,350
101,974

72
56
59
00
67

$17,429,777 54

Derived from the following sources, viz :
$6,205,474
3,819, 71
2,022,484
1, 0" 0, 00()
1,691,292
300,000

1st preference shares and s c r ip ...............................
2d
“
“
“
...............................
Common stock and scrip.........................................
Sterling bonds.............................................................
Dol'ar bonds and ^ crip .............................................
8. & II. Val. R.R. mortgage bonds........................
Baltimore Loan to Union R. R. ......................... .

67
78
75
00
99
00

$6,586,134 87
4,051 744 50
2,029,778 25

20,000 00

20,000 00

1,00 ,000 00

2,368,385 27
3 0,000 00

Total stocks and bonds
$15,059,024 19
$16,356,0 2 89
Pay R olls..........................................................................................
37,332 46
82,228 28
Bills payable....................................................................................
18,494 44
221,734 36
Cash dividends on preference shares unpaid...........................
14,515 50
11,472 00
Balance credit profit and lo ss ..............................................................
675,94876
758,300 00
Total credit

$15,805,315 35

$17,429,777 54

The following statement exhibits the progress o f the construction accounts period,cally or yearly since the re-organization :
Aug.
July
July
Jan.
Jan.

Periods.
15, 1860 to June
1, 186 to June
1, 1 63 to Dec.
1, 1864 to Dec.
1, 1865 to Dec.

General
Account.
$15,623 93
119.017 02
245,120 00
714,887 37
755,427 86

30, 1862.............................
30,1863.............................
31, 18* 3 .............................
31, >864.............................
31,1865.............................

Total..............................................................................$1,992,076 23

Cincinnati
Extension.
$ ................
................
1,831 10
*■70,113 13
245,828 01

Total
Amount.
$157,623 98
119,017 0J
246,951 10
1,585,000 50
1,001,255 87

$1,117,772 24

$3,109,848 47

The bond account at the close o f the two last years stood as follows :
Sterling 7 p.c. bends 1892, coupons Feb. & A ug...............................
Doliar 7 p.c. bonds 1892. coupons Feb. & A u g .................................
Scioro & Hocking Valley 7 p.c. bonds 1888, coup. May & N o v ..
Baltimore Lean................................................. ................................. .
Total bonded debt

1864.
$1,000,000 00
1,6 1,292 99
300.000 00
20,000 00

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

$3,011,292 99

1865.
$1,00' i.OOO 00

2,368,385 27
3 )0.000 00
20,000 00

$3,688,38 ^27

— showing au increase in the la9t year o f $77,092 28.
The market pnee o f the com pany’s stocks at New Y ork has shown the following
monthly fluctuations during the two years embraced in the foregoing e x h ib it:
/— 1st P reference— s
1864.
1865.
J a n u ir y ......................................
F e b ru a r y ......................................
M a rch ............................................
A p r i l ..............................................
M a y ................................................
J u n e ...............................................
J u ly ................................................
A u g u s t ......................................
S e p te m b e r .................. ............
O c t o b e r ............................ ........
N o v e m b e r ..................................
D e ce m b e r .................................

1864.

1865.

47©69

30@30

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

70 @89
65 ©74

.........................
70^@ 74
..........................
65 @70
........................
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1866]

Analyses o f Railroad Reports.

223

The Marietta and Cincinnati Railroad Company w ere chartered under an act o f the
Legislature o f Ohio, passed March 8, 1845; and commenced the work o f construction
early in 1851. From Chillicothe to Greenfield, 28 miles, was opened for traffic in
April, 1854 ; from Greenfield to Blanchester, 34 miles, in 1S55, and thence to Love­
land, 16 miles, was part o f the Hillsboro’ and Cincinnati Railroad.

The eastern divis­

ion o f the road was opened as fo lo w s: Chillicothe to Byers’ , 37£ miles, in the spring
o f 1855; Byers’ to Athens early in 1856, and Athens to Marietta, 39| miles, April 20,
1857.

The last rail had been laid on the 9th.

The trains o f the Marietta and Cincin­

nati Company were r* n over the whole line, via the Little Miami Railroad into Cincin­
nati. May 11, 1857.
The original great route o f travel eastward* from Cincinnati was through Chillicothe
and Marietta, O., and Clarksburg, Va., to Washington, Baltimore, and Philadelphia.
It was then regarded a9 the future great route o f travel and comm erce.

This was

based on the geographical i ea that it was on the most direct line possible to naviga­
ble tide-water.

The certainty o f rich results anticipated from the construction o f a

railroad from Cincinnatti directly eastward, called forth the energies o f various rival
interests and eute prises, which, by a strong combination, threatened serious embar­
rassments in prosecuting to an early completion either o f the lines pr« jected

Two

companies were organized with authority to build railroads respectively from Cincin­
nati to Marietta, v iz: the Marietta and Cincinnati (as above), aud the Hillsboro’ and
Cincinnati.

Both entered upon the work o f constructing their roads with great

energy and determination.

Financial troubles, caused by the withholding o f foreign

capital to aid in the completion o f American railroads, however, brought the mana­
gers o f these two companies to c^nf-r together upon their interests and to devise
means to 8ave their stockholders from loss and to secure the building o f one through
railroad.

The conferences held resulted in a contract o f union, equivalent to a con­

solidation o f the two companies, under which the stock o f both was made o f equal
value by a provision that dividends should be made from their common earnings and
alwa\8 o f equal amount, and that the earnings o f both should be applicable to the
payment <f the interests o f the debts o f both the companies, which were placed
under a consolidated management.

Many advantages accrued from this arrangement

— competition, whether for credit or business was at once destroyed, and a greater
brea th o f territory secured to the one road.
The Hillsboro’ and Cincinnati Rai road, above spoken of, was chartered March 2,
184b, and com plete I from Love and to Hillsboro’ 37 £ miles, in 1852.

The contract

above recited went into operation February 1, 1854.
Scarcely had the line from Marietta and Cincinnati com e into nse than the financial
horizon became clouded, and the storm o f 1857 swept over the cou n try; business o(
all kinds was almost suspended and railroad property especially was adver-ely
affected

The consequence to the Marietta and Cincinnati company wa9 that they

became insolvent and unable to pay the coupons o f the bonded d ebt; scarcely,
indeed, was sufficient col ected to pay current expenses, and on several occasions
troubles occurred with the em ployes.

Thus passed two unpropitious years, when a

reorganization was proposed and carried into effect, inaugurating the present com ­
pany as successors o f the original company.
A bout $12,000,000 had been expended upon the property prior to the insolvency of
1857.

Litigation ensuing, the property was placed iu the hands o f a receiver, and so

remained to the period o f reorganization.

A t the date o f the insolvency the cost of

the property was represented as follows, viz : stock $3,500,000 ; 1st mortgage bonds
$2,500,000; 2d mortgage bonds $2,000,000; 3d mortgage bonds $1,500,000 ; domes*




Analyses o f Railroad Reports.

224

[September,

tic bonds about $1,200,000, and floating debt about $1,500,000;— total $12 200,000.
Thu basis o f the reorganization was $8,000,000, and the capital account as o f the
15th August, 1860, stood as follows on the company’s books: first preferred shares>
$8,295,900; second preferred shares, $2,637,800; common shares, $1,850,000 ; preferren stock scrip, $3,750 ; total, $7,787,500.

T o this should be added, $201,471, a

temporary loan effected by the trustees who purchased the property for the benefit
o f the parties in interest.
A t the first meeting o f the stockholders the Board o f Director's were authorized—
1st. T o purchase the railroad o f the Hillsboro’ and Cincinnati Company.
2d. T o purchase the railroad o f the Union Railroad Company.
8d. T o increase the capital stock to $19,000,000 ; and
4th. T o create a mortgage on the property and franchises o f the company for such
sum as in their judgm ent might be necessary to com plete the railroad and its exten­
sions and connections.
A ll these requirements have been carried out but the road is not yet perfect.
indeed, a work o f great difficulty, requiring several large tunnels.
into Cincinnati is so far com plete as to permit the passage o f trains.

It is

The extension
The Ohio River

at Parkersburg is still crossed by fe n y , but this will be superseded at no distant day
by a bridge now being constructed.

Probably also the road will be ultimately

extended west to Dayton and east to W h eelin g; such extensions are necessary to
Complete connections with existing lines.

With these the road will be what is claim­

ed for it— the best route between the seaboard cities and Cincinnati, St. Louis, <fcc.in
the interior.

Several years, however, will necessarily be consumed in bringing the

enterprise to completion, and large sums o f money will y et be required for the pur­
pose.
The Portsmouth Branch is the Scioto and Hocking V a lley Railroad which was
purchased in 1863 for $800,000.

M IC H IG A N

CENTRAL

R A IL R O A D .

The results of operations on this road for the year ending May 31, 18G6, and
the four previous years, are shown in the following statement:
Passenger................... ...................... ........

(A v . p. ton p. in., c ts ................................

fr e ig h t............................................... ........
(A v. p ton p. m., cts ........................ .......
Miscellaneous...................................
Total earnings...................................
Expens s.............. ..........................
....
(Expenses to earnings.................. .. .......

1862.
$724,915
2.51
1,559,061
1.91

1863.
1864.
1865.
1866'.
$889,682 $1,202,415 $1,771,814 $2,061,335
2.-19
2.44£
2.59
2.72)
1,983,757 2,073,274 2,233.529 2,208,592
1.99
2.95
3.06
2.60)
73,121
98,859
140,076
176,563

$2,946,560 $3,434,548 $4,145,419 $4,446,490
1,149,153 1,972,860 1,720,125 2,406,149 2,808,376
48.67 p. c 43.18 p. c. 50.08 p. c. 58.04 p. c. 63.16 p .c)

Net earnings.................. . .........

$1,674,200 $1,714,423 $1,739,270 $1,638,114

The income accounts, varying somewhat from the above, supplies the lollowing
figures for the same years ;
Bal. from old account............. ........
Receipi s from ear'gs.............. .......... .......

186.2.
2,368,589

Total means................................




1864.
1865.
$772,636 $1,002,894
8,417,186 4,121,213

1866.
$708,385
4,415.279

$3,260,111 $4,189,822 $3,124,107 $5,159,664

Which is accounted for as follows
Expenses........................... .......... .. .
Sinking fund.................................... ........
Interest and exchange....................
Cash dividend J u l y ...........................
do
Jan........................... ........
Stock d iv. Ju ly, 1865........................
U. S. tax on d iv id e n d .....................
do
on receipts........................
Bal, to new account ...... ........... .....

1863.
$312,104
2,947,917

:

$1,272,360 $1,720,125 $2,406 149 $2,803,376
8 ,500
84,500
84,500
84,500
643,726
617.657
622,691
600,217
(3)181,713 (6)363,422 (12)757,889 (4)259,648
(3)181,713 (5)302,860 (6)363,432 (6)378,942 (5)344,035
(6)389,473
55,723
[
21,753
69,9S5
113,381
[
82,469
95,280
460,80S
772,636 1,002,894
708,385
84,50)

1806]

Foreign Trade o f N . Y . fo r the year ending June 30.

225

The general account on the 31st May, yearly, has been as shown in the follow­
ing statement:
1863.
1863.
1864.
1865.
1866.
Capital stock.............................................. $6,057,710 $ 6,1157,436 $6,315,906 $6,491,386 $6,983,866
llonds..........................................................
7,999,489
7,999,489 7,740,989
7,565,489 7,463,480
TJ. S. tax on coupons.................................
.....
4,956
5,435
258
58
Unpaid dividends. ................
1,781
437
1,598
660
1,059
Bills and sundries.....................................
......
......
.....
15.492
279,915
Balance o f incom e...................................
312,194
772,637 1,002,894
708.835
460,803
T o t a l......................................................... $14,371,174 $14,334,955 $15,066,822 $14,781,570 $15,188,190

Against which are charged as follows :
C on stru ction .................................................. $12,847,238 $13,805,576 $13,805,576 $13,805,576 $14,316,423
M aterials..........................................................
...
....*
....
174,026
288,065
Cash, b on d s, & c ............................................
206.146
654,725
807,841
242,106
75,750
N . A . & S. R. R . s t o c k ................................
609.764
___
___
___
J. & N. I. R . R . s t o c k ................................
168,225
168,225
168,225
168,225
168,225
do
c o n s t r ................................
40,768
___
....
___
___
Land a c c o u n ts ................................................
...
...
___
214,173
125,911
S t e a m b o a t s ....................................................
304,008
___
___
___
___
A ss. in officers’ h a n d s ..................................
60,458
168.310
75,736
137,069
145,737
A ccou n ts and b ills ........................................
134,567
88,118
209,444
39,596
68,078

T otal.....................................................$14,371,174 $14,834,955 $15,066,822 $14,7S1,570 $15,188,190

FOREIGN TRADE OF N EW YORK FOR TIIE YEAR ENDING JUNE 30 .
W e are able now to com plete our tables showing the foreign trade o f N ew Y ork for
the fiscal year, having received the official figures for June.

The business for the year

has been, as our readers have become aware from our monthly tables, very large— in
fact, beyond precedent— bat much o f this is due to the peculiar circumstances incident
to the close o f the late war.
IM P O R T S .

It should be remembered, in examining the imports, that the increase this year
arises in great part from the fact that the South has supplied her wants through New
York almost entirely, instead o f importing directly, and, therefore, as we stated last
month, the imports at this port bear a much larger proportion to the total imports o f
the country than formerly.

The imports for June we give below, adding the figures

foi the two previous years :
F O R E IG N

IM PO R TS

AT N EW

Entered for consum ption.
Entered for warehousing .
Free goods
..................
Specie and b u llio n ..........
. Total entered at the port,
Withdrawn from warehouse.

YORK

FOR TH E

M ONTH

O F JU N E .

1864.
$5,513,985
16,906,964
1,358,634
146,731

1865.
$8,542,271
7,123.792
953,226
236,032

1866.
$10,6-2.723
10.957,050
1,002,330
94,549

$23,926,314
2,544,914

$16,855,321
6,346,958

$22,736,052
8,967,431

From the above it will be seen that the total goods thrown on the market during
each year in June was as follows :
F O R E IG N

GO O D S M A R K E T E D

IN

JU N E .

Entered for consum ption. . . .
Free goods...............................
Withdrawn from warehouse

1864.
$5,513,985
1,358,634
2,544,914

1865.
$8,542,271
953,226
6,346,858

I860.
$10,682,723
1.002,330
8,967,431

Total marketed...............

$9,417,533

$15,842,455

$20,652,484

The large comparative increase in goods marketed for June, 1866, is probably due




Foreign Trade o f N , Y . fo r year ending June 30.
to the rumors that the new tariff was to apply to goods in bond.

[September,

B elow we give the

total imports for the six months ending June 30 :
F O R E IG N IM PO R TS A T N E W Y O R K F O R T H E S IX M ONTHS FR O M J A N . 1.

Entered for consum ption............................................
do
warehousing............................................
Free go o d s ...................................................................
Specie and bullion.........................................................

1P64.
$76,034, 89
54,744,422
6,152,414
1,427,014

Total entered at p o rt........................................
Withdrawn from warehouse...........................

$138,358,539
32,839,737

1865.
$38,125,398
42,811,119
5,023,712
1,051,823
$S2,012,052
41,626,821

1866.
$88,759,762
66,426,467
7.036,616
1,180, i86
$163,403,031
49,993,854

The increase in imports for the six months over 1865 is about 100 per c e n t , being
$163,403,031 in 1866, against $82,012,052 in 1865.

That our readers may see the

movement each month, we have prepared the following, showing the value imported
and marketed each month since January, with the totals for the previous six months :
F O R E IG N IM P O R T S A N D AM O U N T M A R K E T E D A T N E W Y O R K F O R T W E L V E M ON TH S.

S ix m onths...................................... .
January........... ...............................
February............................................
M arch.................................................
A p ril...................................................
May .................................................
J u n e ...............................................

,-------------- m 14-65--------------, /--------------- 1865 -66--------------- ,
Total
Total thrown
Total
T o al thrown
imports.
on market.
imports.
on market.
$79,767,221
$69,201,651
$147,730,367
$1.35,457,584
10,620.117
11,711,178
30.109.830
27.219.868
11,473,668
11.472.456
30,692,557
26,560.301
16.012,373
13,602,088
26.204,940
24,224.630
14.174,464
14.369,609
23.269.391
24,810,605
12,876,109
17,688,145
28,818,447
23.973.558
16,855,321
15,842,455
22,736,652
20,652,484

Total 12 m onths........................
Deduct specie...................................

$161,779,273
1,890.431

Total merchandize for 12 months.

$159,888,842

$306,133,368
2,251,644
$153,977,582

$303,881,724

$280,358,816

The following statement gives the totals for the year ;
F O R E IG N

IM P O R T S

AT N E W

YORK

FOR TH E

E N D IN G

JU N E

30.

1863-64
$139,034,088
83,459,792
10,374,108
2,099,057

1864-65.
$65,189,115
82,206,122
10,603,200
1,890,431

1865-6*.
$175,849,845
112,356,494
12,423,741
2,251,644

$234,967,045
63,095,973

$159,888,842
76,267,862

$303.831,724
88.891,375

Entered for con su m p tion ............................................
do
warehousing ............................................
Free g o o d s ......................................................................
Specie and b u llio n ........................................................
Total entered at p ort.............
W ithdrawn from warehouse.

F IS C A L ' E A R

From the above, it will be observed that the total imports this year were $303,881,724, against $159,888,842 last year, showing about the same increase for the year as
for the last six months.

W e have classified this statement, and give the figures b e­

low, showing the imports o f dry goods and general merchandise separ tely ;
D E S C R IP T IO N

OF IM PO R TS

FOR

TH E

YEAR

E N D IN G JU N K

30.

Dry g o o d s .....................................................................
General merchandise...................................................
Specie and b u llion .......................................................

1S63-64.
$83,234,966
149,633,022
2,099,057

1864-65.
$47,963,508
110,034,903
1,890,431

1865-66.
$136,075,645
165,554,435
2,251,644

Total im ports........................................................

$234,967,045

$159,888,842

$303,881,724

CUSTOM S

R E C E IP T S .

The following table gives the customs receipts at this port for the eleven m onths:
R

C E IP T S FO R

CUSTOMS A T T H E

S ix m onths.......................................................
January ............................................................
February...........................................................
M arch................................
A pril...................................................................
M a y ...................................................................
Ju n e...............................
Total for twelve months




PORT

1864.
$35,042,“ 76
6,180.536
7,484,027
7,659,770
13,982,555
3,855,186
3,311,148

45
09
93
47
60
46
43

$77,506,201 43

OF N E W

YORK.

1865.
$24,473,902 73
4,231,737 47
4,791,247 10
5,392,099 26
6,309.994 34
8,133,423 06
7,837,075 84
$61,161,079 80

1866.
$65,007,378
12,437.474
12,008,273
11,173,154
10.950,896
11,418,492
9,559,898

87
16
74
62
78
10
88

$132,625,518 65

227

Foreiyn Trade o f N . Y~. for year ending Jane 30.

1863]

These figures for 1866, it will be noticed, do not precisely agree with those we re­
ceived la s t m o n t h fr o m Washington, a n d published in the August M a g a z i n e , page 152.
EXPORTS.

T he im p orts as given a b ov e are stated, o f course, in their foreign g o ld v a lu e, freights
and duty not a d d ed , w h ile the e x p orts o f m erchandise are giv en in their cu rrency
values.

This fact should b e rem em bered in com p a rin g the increase o f exp orts w ith

the increase noted in our im ports.

A t the sam e tim e, as affectin g

the balance o f

trade, w e m us also rem em ber the exp orts o f cotton from S outhern ports, w h ich have
been for the y e a r o v e r 1,000,000 b a le s ; this, a t $ 1 5 0 (s p e c ie ) p er b ale ( w h ich, w e
think, is a fair a vera g e), w ou ld sh ow an e x p o r t va lu e from th e Southern
cotton alone o f $ 1 5 0 ,0 0 0 ,0 00 in gold .
for our la rge im ports.

ports o f

T his item p lain ly indicates h o w w e have paid

B e lo w , w e g iv e the tab les o f exp orts.

T h e follo w in g is the

com p arative sum m ary for J u n e ;
EXPORTS FROM NEW YORK TO FORE'GN PORTS IN THE MONTH OF JUNE.
Domestic produce...................................................................
Fereign free good s.................................................................
Foreign dutiable goods..........................................................
Specie and bullion.................................................................

1864.
$17,696,405
75.709
1,282,218
6,533,109

1865.
$8,079,802
35.417
131,425
5,199,472

1866.
$9,601,089
55,074
606,255
15.890,956

Total exports....................................................................
do
exclusive o f specie.................................

$25,887,531
19.354,422

$13,446, 16
8,246,614

$26,153,374
10,262,418

T h e exp orts since Jan. 1 are as fo llo w s :
EXPORTS FROM NEW YORK TO FOREIGN PORTS FOR SIX MONTHS FROM JaN. 1.
Domestic produce..........................................................
Foreign free g o o d s .......................................................
do
dutiable............................................................
Specie and bullion........................................................

1864.
$85,386,922
357,665
4 131.855
29,152.121

1865.
$68,148,767
634.896
2.113,022
17,915,759

1866.
$10-1,25 M36
458,794
3,025,987
45,782,430

Total exports.................................................................
do exclusive o f specie.............................................

$119,028,563
89,876,442

$88,242,444
70,926,685

$153,521,347
107,738,917

T he follow in g w ill sh ow the tota l for the tw e lv e m onths from J u ly 1 to June 30,
•nclusive:
EXPORTS FROM NEW YORK TO FOREIGN PORTS FOR THE FISCAL YEAR ENDING JUNE 30.
Domestic produce..............................
Foreign free good s............................................................
do
dutiable................................................................
Specie and bullion............................................................

1863-4.
$161,842,911
838,526
6.244,339
58,274,220

1861-5.
1865-6.
$184,617,834 $210,352,823
2.419,689
762.633
15,83\262
4,323,375
39,589,259
57,870,354

Total exports.....................................................................
do exclusive o f specie.................................................

$227,199,996
168,925,776

$242,462,044 $273,309,1&5
202,872,785 215,438,831

W e thus see a total cu rren cy va lu e o f ex p orts at this p ort for the yea r o f $21 5 ,4 3 8 , S31»
against $303,8 8 1 ,7 24 in foreign g o ld values o f im p orts.

I f to these e xp o rts, h ow ever,

we add the value o f the cotton e x p orts from the S outhern ports, w e h a v e a v ery
different balance.




Commercial Chronicle and Review.

228

[September,

COMMERCIAL CHRONICLE AND REVIEW.
Commercial and monetary affairs for August—Rates for loai.s and discounts—Course o f Consols
and Five-twenties m London—P rices Railroad and other Stocks—Course o f Exchange—
Prices o f Governm ents—Coupon vs. R egistered B onds—Price o f Gold each day—Treasure
M ovement, etc.

August has not been characterized by that general commercial activity which
was anticipated. The common supposition that, having now done with war, we
should witness a return to the course of commercial affairs current in former
times, has not been realiz'd. The Southern and Southwestern demand for goods
has not been forthcoming early in August, as in bygone years, for the very ob­
vious reason that as buyers from the South can operate only for cash, they are
compelled to defer their purchases as late as possible. City merchants do not
appear to have anticipated this very reasonable course of affairs, but prepared
for the Fall business with the opening of August, and have consequently suffered
disappointment, but without inducing any panicky tendency The very satis­
factory prospects of the Western crops have created confidence in an ultimate
large demand for goods from that section, which has sustained the markets for
dry goods and general merchandize. Under this improved tone there has been a
general increase of business during the latter half of the month, and the Fall
trade may be said to be now fairly inaugurated, with the prospect of better re­
sults than were at one time anticipated. Buyers, however, are actuated by a
spirit of caution consonant with the natural tendency toward a decline in value ;
and manufacturers would err were they to construe the prevailing tone of busi­
ness as encouraging a large production of goods. Their true policy is to pro­
duce moderately, thereby supporting the value of their products and forcing down
the price of the raw materials, the point at which the decline in values should
properly commence.
The course of monetary affairs has been toward extreme ease. The Treasury
has disbursed nearly 11 millions of interest upon the second series of Seven-thirty
notes, and over 60 millions in the payment of the Temporary Loan, of which
about 34 millions has been paid out in this city. This has prevented the u-ual
tendency toward a stringent money market at the close of August, arising from
the Western demand for currency for moving the grain crops, and at present de­
mand loans average the low rate of 4 per cent. Perhaps at no former period has
there been experienced in this city such a superabundance of unemployed funds.
This condition of affairs is the more remarkable considering that as bill credits
are still on a very contracted scale, there is the more occasion for the use of cur
rency; for it is an accepted rule in monetary science that the curtailment of one
form of credit involves a more extensive resort to sane other. Below we give
tfae current rates for accommodation each week during the month :
BATES

OF

LOANS

AND

Aug. 3.
. 4 @ 5
Call lo a n s . ................
Loans on Bonds and M ortg a g e. . . . - « @ 7
A 1, endorsed bills,, 2 m os ................... Good endorsed billsi, 3 & 4 m o s .. . . . e @ 7
“
“
single names.. . 7 @ 8
.1 0 (o)15
Low er grades ...........




D ISC O U N TS .

Au g. 10. Aug. 17.
Aug. 24.
Aug. 31.
4 @ 5
3 @ 4
b (a) 4
it @ 4
6 @ 7
6 @ 7
6 @ 7
6 @ 7
6| @ N@ 6 @ 7
5 @ S-J 5 tj @ 6 |
7 @ 8
74 6.j@ 7
H @ H
10 @ 15 10 @ 15 10 @ 15 1J @15

1866]

229

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

This extreme ease in the money market market has been coincident with a re­
laxation of the protracted severe stringency at London, and the results flowing
therefrom have been important in their bearing upon such securities as are com­
mon to both centres. On the 16th the Bank of England reduced its rate of dis­
count to 8 per cent., and later to 6 per cent. The immediate result was to en
courage transactions in American securities ; and Five-twenty bonds, which, on
the 1st, were quoted 68, were yesterday 731 ; while Illinois Central shares rose
5£, and Erie common stock 5-}. This advance has been accompanied by an
unusually large shipment of bonds to London and the Continental cities, some
important amounts having been, for the first time, sent to Paris, with a view to
their being introduced upon the Bourse. There can be little doubt that the
amount of Five-twenties sent to Europe during August exceeds the total returned
here in connection with hostilities in Germany. The supply of the bonds of
18G2 has been so heavily drawn down, and the price has consequently advanced
so largely, that the issues of 1864 and 1865 have been sent abroad during the
past week, though, we believe only for private investment. It is a graytil'ying
evidence of the increasing confidence abroad in the credit of the United States
Government that one of the first results of peace in Germany, and of the close
of panic in London, should be an enlarged demand for our bonds. The fol owirg have been the daily quotations for Consols and American securities on the
London Exchange during A ugust;
COURSE o r CONSOLS AND AMERICAN SECURITIES AT LONDON -A U G U ST , 1866.

Date.
Wednesday___ ......... 1
Thursday......... ......... 2
F riday............... ......... 3
Saturday....... .. ......... 4
Sunday .............
. . . f)
Monday......... .. •......... 6
Tuesday.............
Wednesday ..
. ... 8
Thursday___
... 9
F riday............... ........ 10
Saturday........... ......... 11
Sunday............... ......... 12
Monday............. ......... 13
Tuesday............. .........14
W ednesday___ ......... 15
Thursday......... ......... 10
F riday.............. ......... 17

Cons Am. secur ities
for U. S. Ill.C. Erie
mon. 5-20s sh’ s. shs.

Saturday......... ...
Sunday..................
Monday.................
Tuesday..............
W ed n esd a y.......
Thursday ...........
F riday.................
Saturday......... .
Sunday..................
Monday................
Tuesday..............
[W ednesday.......
jThursday.............
1F rid a y..................

88 K
88
875.,'
»7J4

68*
69% 74% 43
GO
68% 74% « %

87%
87 %
S i*
875,
87 54
8734

6S%
685.,'
68 %
6851
68%
68%

75
75%
75
75%
75%
75%

87 V,
G8
87%
875,
88

68%
68%
68
68
68%

76% 42%
755.' 43%
75
42%
75
42% .Highest................
75
42% |Low est.............. ..

44%
43
44%
40%
40%

Cons Am. securities.
for U. S.[Ill.C. 1Eric
mon. 5-20aJsh’ s. Ish’ s.

Date.

....1 9
....2 2

....2 6
....2 7
....2 9
-----30
....3 1

88% 68

75% 42%

60%
70
70
70%
70%
70%

75
76%
77%
78
78%
77%

4254
44%
45
44%
4454
44%

72
72%
72%
72%
73^
—
89% 74%
8754 68

78%
7854
78%
79%

4554

88%
88%
88%
8854
88%
8SJ4'
89
80%
80%
80%
80%

46%

45%
4554
46
7
—
—
7054 46
74% 40%

The foreign demand for Five-twenties has been accompanied by a large home
demand for investment, created by the abundance of idle capital, in which ail
Government securities have sympathised, producing a general advance in prices.
Sixe3 of 1881 have advanced from 109f to 113J ; old Five-twenties from 108i
t o l l 3 f , Ten-forties from 99 to 103J; and Seven thirties, 1st series, from 104
to 107f. The high premium on gold produced by speculative operations, by
preventing the price of gold from following the appreciation in the credit of the
Government, has tended to force up the price of national securities. Below we
give the sale prices at the New York Stock Exchange of Government securi­
ties, represented by the closing sale each day during the month of Aug. 18>6 :




230

[S e p te m b e r,

C o m m e r c ia l C h r o n ic le a n d R e v i e w .
P R IC E S O F G O V E R N M E N T S E C U R IT IE S , A U G U ST ,

Day o f
month.
W ednesday 1
Thursday .. 2
Friday....... 3
Saturday. . . 4
Sunday....... 5
M onday___ 6
Tuesday . . . 7
Wednesday 8
Thursday .. 9
F rid a y....... 1 i
Saturday.. .11
Sunday.......12
M on da y ... 13
Tuesday. . 14
Wednesday 15
Thursday 16
F rid a y....... 17
Saturday.. 18
S und ay___19
Monday
20
Tuesday .21
Wednesday 22
Thursday .. 23
F rid a y .......21
S tard ay ...2 5
Sunday....... 26
M onday___2i
T u esd a y... 28
\\ ednesday 9
Thursdt ..30
F rid a y ....... 31

,-----6’ s, 1881.-----,
Coup.
Keg.
109%
109 )4
19X
109%
1U»X
109%

Opening. .. .
H igh est........
L ow est..........
C losin g.........

109%
113X
109%
112X

109)4
110
110)4
110)4
110)4
110*
11 o x
m *
no#
311/4
112
lilX
111%
111X

110

110
llix
111
iiix

111X
112

r-6’ s, 5-20 yrs.—,
Cotip.
Keg.
108%
108)4
108%
105%
1G8%
108X
1*9
109%
10»x
109%
109)4
109 %
109X
110X
110%
110%
110
110
110)4
111)
lio x
111%

113%

113)4
113)4

11SX

11SX
112
109%
112
109%
112

103X
113%
10SX
112

105%
106%

107
106%
107
108%

108)4
108%
108%
109

105%
109
105%
109

1866.

/—5’ s, 10-40 yrs.^,
Coup.
Keg.
99
»»X
99X
99)4

7-30’ s,
180.7.
101)4
lo t
lo4 X
101)4

99X
99)4
99X
99)4
99)4
99%

104%
104%
105%
105%

99)4
99)4
100%
102)4
102
102

98

105%
105 X
105)4
106%
105)4
106)4

98)4
98

106)4
106)4
106%
106
106
106%

102)4
102
ioi)4
102
102
102X

1 y’ r
certif.

*

107
137

103)4
103X
1)3
102)4

93)4

107)4
107)4

99
103X
99
i02 y .

95 y .
98)4
95 y.
98)4

104%
10 %
104
107)4

The following lire the closing quotations of the leading stocks on Friday of the
last seven weeks:
July 13.
Cumberland C oal.............
Q u ick silv er......................
Canton Co..........................
Mariposa p r e f..................
N ew York Central...........
E r ie ....................................
Hudson R iv e r..................
R eading.............................
Michigan S outhern.........
Michigan Central.............
Cleveland and Pittsburg .
Cleveland and T oled o___
N orth w estern ..................
k*
preferred..
R ock Isla n d ......................
Fort W a v n e ......................
Illinois C entral.................

July 20. July 27. Aug. 10.
46

5't
52X
22X
104X
65 X
116

m ix
82)4
84)4

lio x

35)4
6 IX
97)4
99)4

53
26)4
104)4
01)4
120
111)4
83)4
110
84)4
112)4
35)4
04 X
99X

i o i )4
124% xd.120

40)4
60X
02%
27)4
104)4
«S)4
121
112
84)4
110)4
87)4
116%
87)4
07X
103)4
103X
122)4

Aug. 17.

47X
49X
52X

47)4
51

106
69X
321
112)4
86
110 X
87)4
116%
36.X
07)4
306%
105%
122%

10!%
09 X
115)4
85)4
11
87)4
116
35)4
07X
107
104)4
122)4

Aug. 24. Aug. 31
47M
28
104
73
115)4
8 5X
114
8 )4
1 .6
60)4
08 X
109%
10t)4

123X

4TX
49X
52,X
103)4
73)4
U SX
84)i
112

86X
USX

35%
07)4
108%
10414

123X

The robbery of Government bonds in this city during the past month has
given rise to considerable discussion, and surprise has been expressed that so
large a part of our national debt should be in the unsafe torm of coupon bonds,
liable to be destroyed by fire, lost by accident, or purloiued by thieves. We
might suppose, at first sight, that the registered bonds being safer, would bring
a larger price in the market. But this is not so. However contrary to antece­
dent probability the reverse is true, as a glance at the Stock Exchange report
will show. For the first time in the history of the Government, a singular
anomaly has during the last week in August been exhibited, o f a difference of
four per cent, between the quotations for registered United States bonds aDd
coupon bonds of the same issue. Intrinsically, the two species of bonds are of




1866 ]

Commercial Chronicle and Review.

231

the same value ; for they draw the same rate of interest, mature at the sametime(
and the coupon bonds may be converted into the registered bonds at the will ot
the owner, who has only to take the trouble of sending them to Washington for
that purpose. There are several points suggested by this anomaly which merit
examination.
As to tlie immediate cause of it there is no doubt at all. The bonds i:i which
it exists are known as the old Five-twenties of 1862, which are so exclusively
deal! in in Euroj e that no other species are good delivery in fulfillments of con
tracts. The bonds of 1865, which are really more valuable, as they have three
years longer to run, are not as yet known in the European market, though an
effort is making to get them introduced there. Hence it is that the orders from
abroad run exclusively on the old Five twenties, and, of course,registered bonds
are useless for exportation, coupon bonds being alone negotiable abroad. Now,
it is easy to see that when from any circumstance a very lively foreign demand
springs up for our bonds, the coupon old Five-twenties will exclusively be called
for, and. the supply in market being limited, their price will go up. while that of
the other bonds may be either stationary or will at least be less lively in their
upward movement. The old bonds have sold as high as 114 daring the recent
excitement, while the highest price of the more valuable bonds of 18G5 was
about 110.
This, however, is not quite the whole of the case. W e have explained why
the bonds of 1862 sell higher just now than those of 1865 ; but why should the
coupon bonds of 1862 sell higher than the registered? Are not the registered
bonds available for export purposes by being sent to Washington to be exchang­
ed for coupon bonds ? The answer is that they are not so available. The law
allows you to convert your coupon bonds into registered bonds, but it makes no
provisiou for the reverse process of converting registered bonds into coupon.
This unnece.-sary disability is much complained of, and not unjustly. An effort
will be made at the next session of Congress to get a new enactment passed
removing these incongruities of the existing statutes regulating this important
question of the reciprocal conversion of coupon and registered bonds into each
other.
There are other reasons for a change in the law besides those we have referred
to. And of these, one of the chief is the safe keeping of bonds. The recent
heavy robberies of securities show how necessary it is to prevent the thief from
negotiating stolen securities.
But this is impossible with the ordinary coupon
bonds, which are payable to bearer ; for the courts bold that such a bund passes
from one holder to another just as freely as a bank note or gold eagle. A bona
fide purchaser, in good faith and in the ordinary course of business, has a clear
title to a bond which may have been formerly stolen, even against the man from
whom it was stolen. In the case of a horse, the owner may seize it wherever
found, but not so with a bond payable to bearer. This, if lost, is irrecoverable
by so summary a process.
The only absolute security for the owner of a coupon bond is to have it ex­
changed lor a registered bond. If he loses it, nobody but himself can draw the
interest when due, nobody but himself can claim the principal at maturity. 'The
safety is thus as comple as, in the nature of things, human care and legislative




232

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

[S e p te m b e r,

arrangements can make it. But, there is another difficulty. Suppose the owner
ol a registerd bond wants to convert it back again. He cannot do it, and this
very circumstance prevents many persons from converting their coupon bonds,
for the latter are more easily bought and sold. If you wish to sell a coupon
bond, all you have to do is to deliver it, to the buyer, to get your money on the
spot, and the transaction is closed. With a registered bond, there is the delay
of sending it to Washington for transfer, and, for two months of every year, you
cannot even do this, for the books close during the months of April and October,
preparatory to the May and November payment of interest, and in the interval
you cannot transfer your bonds to a purchaser on the Government books. This
difficulty has been met by an assignment in blank, as it is termed, which really
takes away for the time being the special security of the registered bond, as a
fraudulent holder might avail himself in the blank assignment which you have
signed, and might thus be enabled probably to sell the bond. Bather than sub­
mit to these inconveniencies, most persons prefer to hold the coupon bonds.
Now it has been suggested that these and other inconveniences attaching to
the ownership of registered bonds might be obviated by having the transfer books
kept in New York. Nine-tenths of the business in Government securities is
done in this city, and it is obviously for the convenience of the people, for the
interest of bond holders, and, therefore, for the interest of ihe Government, that
the transfers should be made here, instead of at a place so far removed as Wash­
ington from the great metropolitan centre of trade, finance and commerce. As
to the foreign purchaser of United States securieties, we can do nothing to pro­
tect him from the losses and iucertitude incident to the possession of coupon
bonds ; but in the case of our own citizens we must, for we can, protect them.
And it seems to us that one of the best means of doing this is to induce them to
prefer registered to coupon bonds by some such expedient as we have sug­
gested.
The total amount of Government bonds sold at the the Stock Exchange during
August amouts to $10 987,850, and of Treasury notes $2,577,000 ; which, though
not varying muti i tally irom the transactions in July, is yet very largely in excess
of the average mouth.y transactions.
The course of exchange duiing the month has tended steadily downward, under
the large exports of bonds, which have kept the supply of bills steadily in ad­
vance of the demand. The imports for the month have materially exceeded the
exports, even including the shipments of securities ; from which it is occasional­
ly argued that, the balance of trade being against us, exchange should rule
higher. It is, however, overlooked that our exports to Great Britain are usually
paid for promptly, while our imports are upon four to eight months’ credit. At
the close of the month bills on London and Paris range 3@3| per cent, below
par of exchange. The following table shows the daily fluctuations in bankers
bills (long) on London, Paris, Amsterdam, Bremen, Hamburg, and Berlin at
New Y ork for A u gust:




Commercial Chronicle and Review,

1866]

233

C O U RSE O P FO R E IG N E X C H A N G E F O R AU G U ST .

L ou don.
P aris.
A m sterdam .
B rem en ,
H am bu rg.
B erlin ,
c e n ts fo r
ce n tim e s
ce n ts fo r
ce n ts fo r
ce n ts fo r
ce n ts fo r
D ays.
54 p en ce.
fo r dollar.
florin.
r ix daler. M . b a n co .
thaler.
1 ................................ 107%@108J* 525 © 517 % 40 @ 4 0 % 77 @ 7 9
36% @ 87
72 @ 7 3
2
............................. 107%@1083* 525 © 5 1 7 % 40 @ 4 0 % 77 @ 7 9
3034 @,'17
72 @ 7 3
3
............................. 107% ©108
525 @5173* 40 @ 4 0 J* 77 @ 7 9
36 @ 3 7
71 @723*
4
............................. 107%@108
525 @5173* 40 @403* 77 @ 7 9
36 @ 3 7
71 @723*
5
.....................................................................................................................................................................................
6
............................. 1073*@108
525 @5183* 40 @403* 77 @783* 36 @363* 72 @723*
7
............................. 1073*@108
525 ©5183* 40 @403* 77 @783* 86 @ 3 6 % 72
@723*
8
............................. 107>*@108
525 @ 5 1 8 ’ * 40 @403* 77 @783* 36 @363* 72
@72>*
9
............................. 1073*@108
525 @ 520
40 @ 41
77 @783* 36 @36>* 72 @723*
10 ............................. 1073<@108
530 @ 525
40 @403* 76 % @ 7 8 % 353*@363* 713*@723*
11 ............................. 1073*@108
630 @ 525
40 @403* 76% @ 7 8 % 35?*@303* 71>*@723*

12

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

13 ............................. 1073*@108
580 @5223* 40 @403* 77 @ 7 8
353*@36>* 71 @ 7 2
14 ............................. 1073*@108
530 @5213* 40 @40>* 76% @ 78
853*@36>* 71 @ 7 2
15 ......................
107>*@108
530 @ 521 }* 40 @403* 763*@78
3 5 % @ 36% 71 @ 7 2
16 ............................. 1073*@10S
530 @5213* 40 @40>* 76>*@78
S53s,@36% 71 @ 7 2
17 ............................. 107 @1073* 635 ©5223* 393*@403* 7H%@78
35 @ 3 6
703*@713*
18 ............................. 107 @1073* 635 @5223* 393*@403* 76>*@78
35 @ 3 6
703*@713*
19 ....................................................................................................................................................................................
20 ............................. 107 @1073* 535 @5223* 393*@403* 763*@78
35 @ 3 6
703*@713*
21 ............................. 107 @1073* 530 © 525
3 9 % @ 4 0 }f 76>*@773* 35 @ 3 6
69?*@703*
22 ............................. 107 @1073* 530 @ 525
•893*@403* 763*©77>* 35 @ 3 6
693*@703*
23 ............................. 107 @1073* 530 © 525
89% @403* 76>*@773* 85 @ 3 6
69% @ 70%
2 4 ............................. 1063*@107>* 540 @ 530
393*@403* 76 @ 7 7
85 @ 3 6
69>*@703*
25
............................. 106>*@107
540 @ 530
893*@40
76 @ 7 7
35 @ 3 5 % 6 9% @ 70%
26
....................................................................................................................................................................................
27.................................. 106>*@107>* 535 @52S3* 89% @ 40
75 @163* 35 @ 3 6
69% @ 70
23.................................. 1053*@107
540 @532>* 89J*©893* 75 @ 7 6 % 35 ® 35% 6 3% @ 70
29 ............................. 10534 @ '0 7
540 @5323* 3 9 }*@ 3 9% 75 @763* 35 @ 8 5 % 6»>*@70
30 ............................. 1053e@106>* 545 @ 535
39 @ 4 0
75 @763* 34J*®35% 68>*@693*
31 ............................. 1053*@106
645 @535
89 @ 4 0
75 @ 763* 3434 @85>* 68 @ 69

Ana ........................... 1053*@308>*
J u l y ........................... 1073*@1093*
June........................... 1073*@110
May ..........................10S%@1093*
Apr ........................... 106>*@1083*
Mar ........................... 106%@1083*
Feb ........................... 1073*@108J*
Jan ........................... 108 @109%
8 m onths............... 1003*@109%

545 @5173*
525 @5073*
205 @5073*
520 @510
5373*@5173*
530@ 518%
532!*@5173*
523%@515

89 @41
40 @42
40 @42%
40J*@42X
393*@41
40 ©41
40>*@41
40>*@41

75 @79
77 @79
77 @803*
78%@80
703* @ 78J*
77 @78%
77 @79
78 @793*

S4>*©37
36 @373*
35J*@373*
36 ©37>*
35 @263*
&5%@36%
35%@36%
36 @36%

68 @73
72 @75J<
73 @75
71 @74
69%@71%
70%@71%
703*@713*
71 @71%

545 @5073*

39 @42%

75 @803* 34%@37%

683*@75>*

The gold market has been subject to violent fluctuations, owiug to a specula­
tive combination for making gold scarce and forcing up the premium.
The prospect of an importation of gold from abroad and the maturing of in­
terest upon Ten-I'ortv bonds on the 1st of September have induced the clique
holders to realise upon their coin, and the market closes easier.
The following
are the daily quotations for gold for the month o f A u g u s t:
Lowest

149
148%
148%
148

149
149%
148%
148

148%
147%
117%
147

M onday..... ..........
6
Tuesday........................ 7
W ednesday.................. 8
Thursday...................... 9
Friday........................... 10
Saturday...................... 1 1
S.inday......................... 12
M onday........................13
Tuesdav........................14
W ednesday..................15
Thursday......................16
F rid a y..........................17
Saturday......................18
Sunday........................19

1473*
147%
148
148%
1483*
1483*

148
148
149
148%
148%
149

1473*
1473*
148
1483*
148%
148%

1493*
149%
1503*
1513*
151?*
151

149%
150%
152
152%
151%
151

1493*
1493*
1503*
1513*
150%
148%

Date.

VOL. LV.---- * 0 . III.




fcb
.2
*02
O
O

D ate.

tc
'a
V
Q,
O

03
'Si
5

M o n d a y ..............
148% 118%
T u e sd a y ................ . . . . 2 1 147% 148%
W e d n e s d a y .........
..22,147% 1493*
T h u rsd a y .............. ___ 231150% 151
F riday................... . . . ,24|1503* 1503*
148
1473* Saturday................
___ 26
147%
148% M o n d a y .............. ___ 271146% 148%
1483* T u e s d a y ............. ....2 8 ,1 4 8 % 1493*
14834 W e d n e s d a y ........ ... .2 9 148’ * 1483*
1483* T h u rsd a y ............ . . . . 3 0 148 14S>*
F r i d a y ................ ....3 1 1473* 1473*

148%
148
147%
1473*

1493*
150% A u gu st,1866........
“
1865........
151%
“
1864.......
1523*
“
1863.........
151%
“
1862 . . . .
1493*
“

16

l & l ........

149
144%
255
129%
115%
100

152%
145%
261%
129%
116%
100

C losin g.

H igh’ st

Wednesday.................. 1
Thursday...................... 2
F rid a y.......................... 3
Saturday...................... 4

’3
«
Pi
O

L o w e st.

C O U RSE O F GOLD F O R AU G U ST .

to

14S3*
1473*
147%
149%
148
147

148%
1173*
117%
150%
148
147

146%
143%
148%
147%
1473*

1483*
148%
148%
147 y.
1473*

146%
140%
281%
122%
112%
100

147%
144%
238
127%
115%
100

Commercial Chronicle and Review.

234

[September,

The Treasure Movement at N ew Y ork weekly, and the amount in Banks at
the close o f each week since January 1, has been as follow s:
TREASURE

1866.
R e c e ip ts ,
w eek
from
e n d in g
C aliforn ia.
Jan . 6 .............................................
“
13......................
$685,610
“
20......................
799,706
*• 27.............................................
P e b . 3 ........................
944,878
“ 10........................
1,449.074
“ 17 ....................................... ; . . .
“ 24..........................
1,209,048
Mar. 3...............................................
“ 10........................... 1,469,286
17..........................
1,425,353
..................
389,837
.................
673,615
729,862
809,459
1,318,271
1,072,820
1,271
324,562
949,906
892,365

M OVEM ENT FOR

1866.

E x p o r ts .
- S u b -T re a s u r y t o fo re ig n C u stom s In te re st , - G o ld C ertificates
c o u n trie s , re ce ip ts, paym en ts,
issu ed, returned.
$552,027 $2,107,341 $3,597,240 $3,122,440 $1.34,8832
640,503
2,334.694 1,130.789
3,206,180 1,578,194
---------"
685,894
2,754,369
------“
------------574,162
2.706,400
1,928,641
656,812
3,226,040
279,842
2,598,400 2,137,048
292,568
,422
115,204
2,081,280 2,221,423
* 3 ,4 0 9
3,251,734
120.179
1.916,700 2,376,735
••>,489
2,893,008
94,828
2 992.900 2,158,009
560,198 2,608,796
119,*79
5,893,280 1,995,196
75,453 3 386,934 1,183,343
2,125,000 2,664,934
556,284 2,297.836
882.712
2,101,000 1,706,835
236,671 2,464,482
328,593
1,498,400 1,919,483
170,297 2,509,419
174.911
361,280 1,886,419
3,500 2,451,345
225.414
1,376,000 1,895,834
216,842
2,863 010
63.140
3, 16,840 2,120.100
122,628
2,857,704
49,800
5,038,460 2.274,704
117,312
2.535,568
35.169
4,
-.00,000
73,880
2,246,307
40.506
4.137.140 1,760,307
1,247.249
2,711,181 7,061,900 4,658,000 2,227,181
1.064,496
2.417,391 2,648,000 3,110,000 1,943,391
8,763.295
2,542.814 1,702,000
2,842,0'0 2,069,814
2,358,455
"9,421,766
" ........ ..
........... 940.100
.....................................
9,177,000 1,929,454
6,870,997
2,182.395
70 500 1,327,000
1,911,395
4,220,756
2,141,086 283,800 2.6 6.000
1,863,0*7
6,055,743
2,071,621
67,000 3,719.000
1,788,621
1.408,286
2,209,676 106,134
2.793.000 1,809,676
550 574
2.002,265 298.748
3.232.000 2,309*264
1,630,730 2,47 ,626 3,964,634
4,174,000
2.081,1
2,239,270 2,486,296 1,267,600
3,614.400 2,182.226
416,013
2,480,149 324,100
2,‘
2,187,149
1,515,446 2,926,884
277.044
2,120,000 2,54 ,884
530,174 2,794,658 1. 5,500 1.8-9,000 2, 00,654
152.375 2,676,332
61,400
“970,(10!)
““ "
2,328
------------331
117,990 2,461,877
50,300
2.064,000 2,145,876
787,312
3,069,893
6 -,987
2,188,000 2,545,893

■x In ban ks
n at clo se
o f w eek.
$15,778,741
16,852,568
15,265.372
13,106,759
10.937,474
10,129, m
10,308,75$
14,213,351
17.181,13$
16.563 237
15,015,242
13,945,651
11.930,392
11.436,295
11,035,12$
9,495,461
i;971,568
8,243,937
10.914,997
13.970,402
13,595.465
19,376,929
28. 58,093
15.821,663
11,217,305
8,504,01)6
7,797,218
9.805,266
12,451,684
10,860,140
9,70 ,547
9.448,900
8,424,290
7,545,51 <
6,884,- 77

The following table, compiled from the records for the past eight months o f
the current year, and for the same months o f the previous seven years, shows
the general results o f the import and export o f treasure at this port :
M onths, & c.
J a n u a ry ........
F eb ru a ry ___
M a r c h ............
A p r i l .............
M a y ----- ------Juue
........
J u ly ................
A u g u s t..........
Jan . A u ?,
do
do
do
do
do
do
do
do
do
do
do
do
do
do

’ 66................
’ 65................ ............
’ 64................ ..............
’ 63................ ..............
X>2.
..............
’ 61................ ..............
'60................ ............
....
’ 59................

,----------------N e w S u p ply .-------------- ,
Californ ia.
F o r e ig n .
T o ta l,
$1,485,316
$72,771 $1,558,087
3,603,000
172,122
3,775,142
3,958 290
285 854
4,244,145
1,539.321
161,817
1.701,138
3.992,148
393,073
4.385,221
1,842,271
94,549
1,936,820
6,754,669
123,592
6,878,261
4,427,659
162,319
4,588,978

E x p o r ts t o
for. p o rts.
$2,706,336
1,807.030
1,045,039
588,875
23,744,194
15,890,956
5,801,459
1,587,851

,------- E x ce s s o f ------- 1
S u p ply .
E x port.
$ ............... $1,148,249
1,968,092
........
3,199,105
..............
*1,112,263
..............
19,358,973
13,954,136
1,076.802
................
3,001,127
...............

$1,465,097 $29.- 67,771 1$53,171,740 $ ............ $24,103,979
6.962,604
11.711,304 1,501,235 13,212,539 20,175.143
7,775,371 1,800,924
9,576,295 32.100,464
22,524,169
19,362,168
8,854.053 1,149,890 10,003.943 29,366,111
16,013,733
823,259 16,836,992 39.748,220
22,911,228
25,421,160 33,955,718 59,376,878
3,264.058 56,112, S20
12199,666
22,601,043
896,932 23,497,975 35.697.641
25,131,345 1,649,501 26,780,846 47,658,179
20,S77,333

The receipts of’ gold from California for the month amount to $4,427.6n9, and
from foreign ports to $161,316, making a total new supply o f $4,588,978 against
a foreign export o f $1,587,851 ; so that there has been a gain at this port of
$3,001,127 for the month.

A ccordin g to cable advices, there is now in transit

about $1,500,000 of gold from London for N ew Y ork, indicating a course of
exchanges which may add materially to the supply o f coin upon the market.




1866]

Journal o f Banking, Currency, and Finance.

235

JOURNAL OF BANKING, CURRENCY, AND FINANCE.
N ew Y o r k C ity B a n k returns—R e tu rn s o ! the B o s to n and P h iladelphia Banks.

We give below the bank returns of the three cities.
specie in New York is at a lower ]

It will be seen that the

NEW YORK
D ate.
Loans.
Jan. 6. 1S66... $233,185,059
“ 13........
“ 20.......
“ 2 7 . . . . . . . . 240.407.836
F eb . 3 . . . . . . . . 242,510,382
“ 10.... . . . . 242,608,872
•“ 1 7 . . . . . . . . 243.068,252
“ 2 4 . . . . . . . . 239,776.200
Mar. 3 . . . .
.. 235,339,412
“ 10..... . . . . 233,068.274
“ 1 7 . .. . . . . . 233,517,378
“ 2 4 . .. . . . . . 234,500,518
“ 31 . . . . . . . 237.316,099
A p r. 7 . .. . . . . 242.643.753
“ 1 4 . .. . . . . . 244.009.839
“ 2 1 . .. . . . . . 242 067.063
“ 28. .. . . . . 24'.017,692
M ay 5 . . . . . . . . 2-3,974,134
“ 12 . . . . . . . 257,621,317
“ 1 9 . . . . . . . 255,690,463
“ 26....... . . . . 257,969,593
Jun e 2 . . . ___ 250.959,022
“ 9 . . . .. . 249,538,959
“ 1 6 . .. . . . . 217,301,547
“ 2 3 . . . . . . . 248,436,808
“ 30 .. . . . . 250,884.168
Ju ly 7 . . . . . . . . 257,534,833
“ 14..
. . . . 259.133,434
“ 2 1 . .. . . . .
255.965.018
“ 28____ . . . . 256,612,071
Aug. 4 . . . . . . . . 256.808, 17
“ 1 1 .... . . . . 258,263,063
“ 1 8 . .. . . . . . 261,951.924
“ 2 5 . .. . . . . . 265,901,065

C ircu lation .
S pecie.
$15,778,741
$18,588,428
19.152.917
16,852,568
20,475,707
15,265.327
13,106,759
20,905,883
10,937,474
21,494,234
22.240,409
10,129,806
10,308,758
22,983.274
14,213,.351
22.959.918
17,181,130
22,994,086
16,563.237
23,033,237
15,015 242
23.303,057
13,945,651
23,243,406
11.‘ 130,392
23,736.534
11.486,295
24,1^7.051
11,035,129
24,533,981
24,045, &57
9,495,463
8.243,937
25,377,2S0
10 914,997
25,415,677
24,693,259
13,970,402
25,189,864
13,595,465
19,736,929
26,223.867
26,244,-55
21.858,093
25,967,253
15,821,663
25,887,876
11,217,305
26,585,394
8,504,096
26,706,622
7,797,213
27,296,530
9,865,266
27,804,172
12,451.684
27,579,020
10.860,147
27.249,812
9.701,046
9,448,900
27,311,549
8,424,209
27,528 522
7,545,513
27,796,904
27,958,464
6,884,077

D ep osits. L egal T e n d ’ s. A g . clea r’ gs
$195,482,254
$71,617,487
$370,617,023
197,766,999
73,019,957
608,082,837
198,816,248
72,799,892 . 538,949,311
195 012,454
70,319.146
516,323,672
191,011,695
68.796,250
188,701,463
68,436.013
493.431.032
189,777,290
64,802.980
471,886,751
183,241,404
61,602,726
497.150.087
181,444,378
58,760,145
526.539,959
180,515,881
594,204,912
64,341.802
185,438,707
68,402,764
579,216,509
185,868,246
69,496,033
593,448,864
188,554,592
72,158,099
529,240,640
189,094 961
71.445,0 5
602,315.748
193,153.469
73,910,370
57-'. 537, &53
196,808,578
77,6 2,688
5:35.834,778
202,718,574
80,589,022
545,339,668
210,373,303
81,2 4,447
603,556,177
217,552,853
85.040,659
523,093,538
217,427.729
85,710,107
579,342,488
208,977,905
73,829,947
713.575.444
198.12 ,289
69,188, 92
713.575.444
202,503,949
74,628,674
633,656,381
202,415,673
79,179,304
013,698,301
201,969,288
80,840,578
696,447,630
204,357,272
81,882.640
568,842,490
205,799,611
79.541,638
511,182,914
207,160,043
75 541,977
637.655,787
213,049,079
598.705,726
80.524,992
214,582,926
84.705,814
430,324,808
214,156,705
86,235,079
523,2 6,814
214,232,263
86,861,834
494,810,975
214,310,576
84,801,071
5-4.655,346
218,119,450
86,283,483
617,950,320

The returns of the Philadelphia
P H I L A D E L P H IA B A N K R E T U R N S .

Legal Tenders.
Date.
$17,181,229
Jan. 2,1866............... ................
“ 8 .......................
‘ 15........................ .................
17,267.412
“ 23........................
“ 29........................
16,481,005
Feb. 3 ........................ ................
16,852,737
“ 10........................ ................
16.777,175
“ 17........................ .................
17,282 602
“ 2 4 ...................... ...............
Mar. 3 ........................ ................
17,447.635
17,292,534
“ 10........................ ................
16.375,603
“ 17........................ ................
15,969,814
“ 24........................ ................
15,951,832
“ 31 ...................... ................
16,622,233
April 7 ...................... .................
18,323,759
“ 1 4 ...................... .................
“ 2 1 ...................... .................
IS,660,513
.................
18,949.719
“ 2 8 ......................
19,144.660
May 5 ...................... .................
.................
19,646,263
- 1 2 ......................
19.648,232
“ 1 9 ...................... .................
19,715,093
“ 2 6 ...................... .................
21,154 909
June 2 ............. ...... .................
“ 9 .................... .................
21,568,085
20,568,591
“ 1 8 ...................... .................
21,105.316
“ 2 3 ...................... .................
21,455,836
“ 3 0 ...................... .................




Loans.
$4->,941,001
46,774,150
47,350,428
47,254,622
47,607,558
47,233,661
47.249,383
46.981,337
48,885,5,2
46,604,752
46,546,878
46,690,788
46,642.150
46.043,488
46,028,041
45,114,699
45,762,733
46,83-1,734
48,006,654
48,238,356
48,336,567
43.036,984
47,561,996
48,118,897
48,616,145
48,166,814
48,266,904

Specie. Circulation. Deposits.
$890,822 $7,226,369 $35,342,306
983,685
7.319.528
36.618,004
1,007,186
7,357,972
36.947,700
1,012,980
7,411,337
36,214,653
1,008,825
7,432,534
35,460,881
1,000.689
7,668.365
34,681.13i
996,312
7,819.599
34.464.07t
953.207
7,843.002
33.926,542
1,026,408
7,732,070
33,052,252
1,041,392
8,161,049
32,835,094
1,055,694
8,248,100
32.504,50*
1,026,068
8.43S,184
32,102.427
981,932
8,580.200
32,144,250
990,630
32,257,653
8.666.230
946,282
8,720.270
32,762,280
949,116
8,743,396
31,640,864
936,876
8,761,213
35,448,955
890,241
8,779,166
36,032,862
912,023
8,794,348
31,987,007
896,741
8,93 1.420
38,414,588
897,913
8,918,938
37,296,645
867,094
8,988,712
37,078,415
890,121
9,022,553
38,189,566
859,633
9,007,515
38,326,934
897,381
9,219,553
36,072,476
899,999
9,290.094
36,715,308
863,454
9,325,475
37,£42,979

236

The United States Debt.

July 7 ..........................
44 : 4 ..........................
“ 2 1 ..........................
44 28 ..........................
A u g. 4 ..............................................
44 11...........................
*• 18............................
“ 25............................ ................

20,393,826
20,412,323

48,892,594
49,493,405
49,009,316
48,935,067
49,682,529
49,164,321
48,530,454
48,591,763

[September,
9,431,664
9,442,146
9,427,363
9,382,473
9,516,724
9,543,472
9,566,783
9,575,534

866,981
852,783
849,770
826,096
825,978
835,158
811,230
807,071

38,275,788
37,707,: 67
37,575,560
37,270,8^5
37,244.034
36,639,226
36,942,311
36,025,288

The returns of the Boston Banks are as lollows :
BOSTON B A N K R E T U R N S .

Jan uary 1 ............

44
“
“

8
1 5

.......

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

22 ...................

29............
F eb ru ary 5 ............

44
(5
March

April

.......

12
1 9 ....
26.......
5 .......
12.......
1 9 ....
26.......
2 .......

16.......
2 3 ....
3 0 ....
7 .......
1 4 ....
**
21.......
28____
4 ... .
June
it
11.......
t> 1 8 * ....
t*
25.......
1 6 ....
July
23 . . . .
it
3 0 + ...
August 6 . . . .
13 . . . .
«
20 . . . .
“
27 . . . .

tt
“
May t

(C apital Jan. 1, 1866, $41,900,000.)
Legal
L oa n s.
S p e cie .
T e n d e rs.
D e p o s its .
$801,415 $19,807,300 $38,451,794
$91,421,477
19,914,065
92,245,129
1,031,327
41,718,132
92,959,364
1,029,105
20.438.014
40,939,870
1,040,114
92,665,111
20,750,698
40,300,6:19
1,008,013
20,544,830
92,877,783
39,153,816
94,578,358
805,237
20,568,185
40,436,163
632,591
20,412,589
94,083,827
38.768.019
95,250,429
508,428
20,418,909
38,494.61)6
521,292
36,398,481
93.539.000
20.262,177
556,856
20,034,968
92,990,512
35,581,876
90,705,159
623,938
19,905,120
35,297.498
606,992
91,902,811
20.470,018
36,696,321
20.913.521
91,931,236
513,153
35.887,368
532,556
20.761.014
92,351,979
36,697,227
37,426,560
92,142,975
487,455
20,334,570
457,648
91,250,882
19,902,647
37,606,696
86,120,897
411,693
19,309,145
36,946,1S2
86.723.001
401,113
19,549.614
38,396,210
90,369,569
576,1fO
21,415,716
41,205,276
90,328,554
501,013
22.462.522
42,021,976
89,634,864
472,172
22,973,509
41,61 ,149
436.391
91,833,402
23,658,956
41,631,746
92 287,648
503,991
26,148,678
42,992,749
89,878,993
374,966
25,470,926
42,858,986
87,568,583
371,596
24,426,749
41,992,820
323,335
94,336,170
25.019,436
42.587.020
96,047,000
453,600
21,610,000
40,41-7,000
95,995.866
441,689
22,786.738
40,935 853
95,002.698
363,776
12,242,659
39,770,363
96.672.749
318,779
22,432,317
40,549,379
295.241
95.771.749
21,101,481
39,192,620
94,915,075
333,670
20,817,159
38,619,847
94,819,253
323,083
21,688,693
39,028,518

♦ N o returns from N ation a l B ank o f R e d e m p tio n .

,---------C irculation---------„
N ation a l.
State.
$21,497,35-4 $1,404,721
21,806,180
1,828,793
21,946,595
1,273,948
22,0:34,642
1,215,675
21,899,318
1,157,848
22,325.428
1,125,728
22,348,638
1,057,328
22.602,531
1,033,391
22,887,971
1,048,022
22,606,835
1,006,719
22,730,329
721,809
24,018,916
910,740
23,019,887
901,620
23,087,693
869,329
23.266.642
830,069
23,6:35,043
777,198
22,469,488
744,041
22.856,656
744,425
23 516,330
719,688
23,551,579
695,527
23,195,968
661,819
23,722,277
644,655
23.679.0 5
609,871
22,916,559
480,594
21,845.977
544,941
23,633,008
507.371
24.145.000
413,000
24,057.765
401.544
23,804,526
355,864
24.116,795
380,980
24,104,997
202,734
24.290.816
368,168
24.262.817
363,405

t N o returns from the T rad ers’ B ank.

PUBLIC DEBT OF THE UNITED STATES.
Abstract statement, as appears from the books and Treasurers’ returns in the
Treasury Department, on the 1st of June, the 1st of August and the 1st of September,
1866, comparatively :
D E B T B E A R IN G COIN IN T E R E 8 T .

5 p er cen t, b o n d s ................................
6
“
“
o f 1867 and 1868.
6
44
44 o f 1881...................
6
44
44 5.20’ s .....................
N a v y P en sion F u n d ..........................

Ju n e 1.
$198,241,100
18,323,592
283,745,500
695,515,000

$198,241,100
18,323,592
283,7:34,100
742,329,650

Sept. 1.
$198,091,350
18,323,592
283.734.800
773.422.800
11,750,000

$ 1,1 95 ,82 5,1 9t $1,242,628,442 $1,288,322,542
D E B T B E A R IN G C U R R E N C Y IN T E R E S T .

6 p e r cen t, b o n d s ......................................................................
T em p orary L o a n ........................................................................
C ertificates o f In d eb te d n e s s................................................
3-year C om p ou n d Interest N o t e s ........................................
3-year 7.30 n o t e s ........................................................................

$5,402,000
124,561.486
43,025.000
162,012,140
812,221,600

$6,042,000
118,665,470

$8,202,000
45,538,0c0

156,012,140
798,949,350

155,512,140
769,518,900

$1,147,222,226 $1,079,668,960

$978,771,040

D E B T ON W H IC H IN T E R E S T H AS CEASED .

Various bonds and notes.




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

$4,900,430

$4,670,160

$19,653,444

The Mexican Finances.

1866]

237

D E B T B E A R IN G N O IN T E R E S T .

U n ited States N o te s .................................................................
F ractional cu r r e n c y ................................................................
G o ld certificates o f d e p o s it....................................................

$402,1-28,318
27,334,905
22,568,320

$4°0,361,728
26,684,139
16,403,180

$399,803,592
20,483,998
15,480,220

$452,031,603

$443,449,047

$441,567,810

A g greg a te d e b t..................................................................
$2,799,979,451 $2,770,416,009 $2,728,314,836
C oin and C urrency in T r e a s u r y ..........................................
129,691,083
137,317,333
132,631,668
D ebt, less c o in and cu r r e n c y ................................................$2,670,288,368 $2,633,099,276 $2,595,683,168

The following statement shows the amount of coin and currency separately at the
dates in foregoing table :
G old C o in .....................................................................................
C u rren cy ............................................................................... . .

J u n e 1.
$50,679,958
79,011,125

Auer. 1.
$61,322,127
75,995,206

S^pt. 1.
$76,333,918
56 297,750

T o ta l g old c o in and c u r r e n c y ..............................................

$129,691,083

$137,317,333

$132,631,668

THE MEXICAN FINANCES,
The London N e w * gives the following exhibit o f the finances o f the Mexican
Empire. The political, military, and financial condition o f M exico has been
sketched with a masterly hand by the present French Minister o f Foreign
Affairs in more than one dispatch since the beginning o f the year, and the facts
constitute a full justification of the resolution announced by the French Govern­
ment to withdraw from its intervention in M exico. But there are certain results
o f that intervention which will remain after the final settlement o f accounts
between the two Emperors, and which greatly concern the British creditor. A t
the beginning o f the year Mr. Middleton, Secretary of the British Legation in
Mexico, sent home an approximate estimate o f the amount o f the revenue and
expenditure o f the Mexican Empire to be calculated on for the year 1866.

We

reprint it :
REVENUE.

M aritim e C u stom H o u s e s ......................................................................................................................$12,500,000
internal C u stom -h ou ses.......................................................................................................................
5,200,000
D irect ta x es u p on property in to w n and c o u n t r y ......................................................................
1,200,000
D irect taxes upon com m ercia l and industrial esta b lish m e n ts........ .....................................
250,000
M in ing d u tie s.........................................................................................................................................
050,000
Stam ped pap er, P ost-office an d o th e r m iscella n eou s t a x e s ..................................................
1,000,000

Total.......................................... ...................................................................................... $20,800 000
E X P E N D IT U R E .

Imperial H ouse........................................................................................................................... $1,740,000
Ministry o f the Imperial H ouse...............................................................................................
30,000
“
“ State.......... ..............................
340,000
“
“ Foreign Affairs......................................................................................................
290,000
“

“

the In t e r io r ........................................................................................................................

3,700,000

“

“ Justice.......... ........................................................................................................

“
“

“
“

P u b lic In stru ction .........................................................................................................
W a r . . . ................................................................................................................................

438,000
12,970,000

000,000

“
“

“ Public W ork s.........................................................................................................
“ F in a n ce...................................................................................................................

1.020,000
3,400,000

T otal............................................................................................................ ...................... $25,434,000

Mr. Middleton suggests that the customs revenue may produce a million d ol­
lars more than the amount stated above; but, when he expressed that opinion,
he did not know that the French occupation, which had given such an impulgeto
consumption and importation, was about to cease. On the other hand, he points
out that the cost o f the French contingent is not included in the estimate. He
observes, moreover, that '• owing to the little progress being made in the pacifi­
cation o f the country,” the amount set down for military expenditure will not




238

The Rice Crop o f 1866.

prove sufficient.

[September,

The charges o f the public debt remain to be added,

They are

as follows :
P U B L IC D E B T .

Interest and s in k in g fund on B ritish C o n v e n tio n ........................................
$750,000
Interest and sin k in g fund on Padre M oran C o n v e n tio n ................................
150,000
Interest and sin k in g fund on Spanish C o n v e n tio n ......................................
450,000
Interest and sin k in g fund o n the Internal D e b t ............................................ 1,200,000
T h e G overn m en t estim ate o f Interest pa\ able on the M e x ica n S tock s
in L on d on , in clu d in g the D eferred B on ds, and o n the am ou n ts o f
the M iram ar and Paris Loat s, is calcu lated at....................................... 10,280,000—
U npaid balances on Laguna, Seca and G uadalajara Conductas, estim ated at
Sundry R e c o g n iz e d Claim s.......................................................................................................
S u b ven tion to V era C ruz R a ilw a y .........................................................................................

$12,830,000
150.000
205.000
1,350,000

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

$14,595,000

The general result is thus stated by Mr. Middleton :
T ota l R e v e n u e .................................................................................................................................
Im perial H ou se and the different D epartm en ts o f S tate.............................. 25,434,000
Interesi o n P u b lic D e b t ......................................................................................... 14,595,0 0 0 T ota l deficit.

$20,860,000
40,029,000
$19,229,000

Here, then, we find the Mexican Government, in the third year o f the French
expedition, with an annual deficit nearly equal in amount to the gross revenue.
But this is not all. Since Mr. Middleton wrote, the French Government has
come to an agreement with that o f the Emperor Maximilian, under which the
debt owing to France for the expenses incurred in setting up the Emperor M axi­
milian’s throne is taken at ten millions sterling, upon which sum interest is to be
paid at the rate o f three per cent.

So, then, it comes to this, that the French

intervention which was to have regenerated Mexico, but which, in fact, has
merely in h n sifei all the evils previously existing there, has saddled M exico wi h
an additional annual burden o f two millions and a half sterling— a souvenir of
the French occupation which the Mexicans will doubtless be careful to preserve.

THE RICE CROP FOR 18G6.
The Charleston D a i l y N e w s, in an article on the growth o f rice in South Car­
olina, gives the following estimate o f the yield this year in South Carolina and
Georgia. The figures for South Carolina are 'prepared after.making careful in­
quiries in the different districts, while those for Georgia are estimated sim ply:
1806.
Clean rice.
12,000
W accam w . P ee D ee and Santee d is t r ic t s ...................................... ................................tierces
C o o p e r R iv e r d istrict
........................................................................................................................
3,000
P on P on , A s h ep oo, C om baliee, and v ic in it y ..................................................................................
5,U00
Savannah b a ck R iver, amount, to co m e to C h arleston ............... ............................................
5,009
C rop o f G e o rg ia ........................................................... ..........................................................................
8,U00
E S T IM A T E OF T H E RICE CROP IN SOUTH C A R O L IN A A N D G EO RG IA F O R

T o t a l................................................................................................................................. tie rce s

33,000

There is, perhaps, a limited amount planted on the Cape Fear River.

North

Carolina, and some inland rice produced in the interior ; the latter will, to acertain extent, if the price keeps up, be brought to this market by railroad, but the
above estimate will not be much changed by these elements.
The dangers now
are an equinoctial gale, and bad work during harvest. T o show our readers the
complete prostration o f this branch o f agriculture by the war, we give the re­
ceipts at this point during the years '59 and ’60, and ’60 and 61, and the same
for '6n and ’ 66, and conjecturally fo r ’ 66 and ’67 :
R eceip ts at < harleston from the S ep. 1,1859, to 31st A u g., 1860................................tierces
R eceip ts from Sep. 1, 1860, to A u gu st 31, 1861...............................................................................
R eceip ts from S eptem ber 1, 1865, to A u g u st 31,1866 ..................................................................
E stim ated fo r 1866 and 1867....................................................................................................................




151,970
126,269
4,0-5
25,000

1866]

Shark Fishing in Norway.

239

SHARK FISHING IN NORWAY.
A m ong the official reports lately published in England occurs a brief account
o f the shark fishery as at present carried on by the Norwegian fishermen along
the coast. This fishery has not attracted- the attention in the southern part o f
the country which it deserves, not from the scarcity of fish, but the deficiency of
appliances and absence o f that experience which is considered necessary to suc­
cess.
A prevailing opinion, however, exists that, if properly prosecuted, it
would become equally as lucrative in the south as it has proved to be in the
north. The vessels employed in it general y range from 25 to 35 tons, manned
with a crew o f six men. They lie at anchor on the banks, with 150 to 2l)0
fathoms water, by a grappling weight about 2 c w t , with a warp about 300
fathoms in length, and about four to five inches in circumference. A box perfo­
rated with holes, or a canvas bag containing the residuum or refuse blubber, after
the oil has been extracted by boiling, 13 attached to the line not far from the
bottom, near the grappling ; globules o f oil are found to oozcou t, or to percolate
through the holes, or bag and to float away in the continuous stream, serving as
a decoy, in a sim’ iar manner as the cod roes are applied in France, where they
are thrown into the sea as ground bait to attract the sardines. Led by this
stream, the sharks are guided to the main bait, which is attached to a thin iron
chain, o f from one to two fathoms in length. This is fastened to a line o f about
the thickness o f the stem o f a common tobacco pipe. A t the end a f the chain
the hook is fasteued, which is usually o f the sizj o f - salmon gaff, and is baited
with some kind of fish, or, what is preferable, about a pound o f seal blubber.
On hooking the shark, he is hauled to the surface ef the water by the aid o f a
single purchase.
Each vessel is furnished with four o f these, tw o on each side.
The line, being small, is only calculated to bring the fish to the level o f the
water ; his nose is then hauled a little above the surface, and a smart blow is im­
mediately struck, by which he becomes stunned.
A large hook at the end o f a
pole, attached to a strong tackle, is then driven into the fish, and by this means
he is hoisted on deck.

The belly is cut open, and the liver taken o u t , a hole is

made in the stomach for the purpose o f inflating it with wind, which done, the
hole is again tied up, and the fish g ot into the water, and permitted to float
away.

The length o f the fish varies from ten to eighteen feet.

The value de­

pends upon the size, quantity, and quality o f the livers, which yield from onehall to two barrels, or from fifteen to sixty gallons o f fine oil each.
The result of a fishery carried on in open boats depends greatly on the wind
and weather. When a boat’s crew obtain from two to four barrels o f liver they
are satisfied.

Under favorable circumstances, however, they obtain from seven

to e ig h t; and if, during the course of the winter, they can get from forty to fifty
barrels, the catch is considered a good one. Besides the liver, when the fish can
be towed to the shore, the flesh is converted into food for the cattle, when a
scarcity o f dried fish heads, which are prepared for that purpose, arises. I t is
occasionally used also as human food, but then as “ rakling,” which is prepared
by being cut up into long strips and wind dried in the open air, or buried in the
ground until partially decomposed, when it is taken up and prepared in a pecu­
liar manner, so as to become edible and fit for human food. It requires, how­
ever, (says M r. Cowe) an A rctic stomach to digest it.




240

Petroleum from Pittsburg.

[September,

SUBMARINE CABLES OF THE WORLD.
The following is a complete list o f submarine cables now in successful working
order, the insulated wires for which were manufactured by the Gutta-Percha Com­
pany of London.
It will be seen that they are fifty-four in number, and they are in constant use.
We give the date of the laying o f the cables, the length o f each of the insulated
wires, in British statute miles, and the names of the points between which they are
InsuL
D ate.
R ou te from
Cab. w ire.
36
36
1959 E n gland to Isle o f M an...........
1859. .S u ez to Jubal Is la n d ............... 220
220
21
21
1S58. .J e rse y to P o ro ir, F ra n ce ____
1859. .T asm ania to Bass S t r a it s ... 240
240
186 0..
D enm ark to G reat B e l t
28 126
1860.. D acca to P e g u ........................... 116
116
1860 B arcelona to M ah on ................. 180
180
1860. .M in orca to M a jo rca .................
35
70
1860. .Iv iz a to M a jo rc a .......................
74
148
1860..
5 .. A n t o n io t o l v iz a .......
76 152
1861. .N ’ w ay across F io r d s ...............
16
16
1861. .T o u lo n to C orsica.........................195
195
1861. .H olyh ea d to H o w th , Ireland 64
64
1861. .M alta to A l e x a n d r ia ................1,535 1,535
18 6 1 ..
N . H aven to D ie p p e .....
80
320
1862. .P e m b ro k e to W e x f o r d ...........
63
252
1862.. Firth o f F o r th ...........................
6
24
529
1862. .E ngland t o H o lla n d ................. 130
lo62. .A cro s s R iv e r T a y .....................
2
8
1863. .Sardinia to S icily ................ 243
243
1864 Persian G u lf............................... 1,450 1,450
1864.. O tran to to A v lo n a ...................
60
60
186 5..
La Calle to B a serte.......
97} 97}
55
166
1865..
5 . e d e n to P ru -s ia .......
1865. .B is e rte to M arsala.................... 164} 164}
18 6 5 ..
C orsica to T u s c a n y .......
66
66
.

laid.
Instil
Pate. Route from
Cab. wire.
1851 Dover to Calias......................
27
108
1S53. .Denmark across the Belt . . .
18 54
1853.. Dover to Ostend.................... 80} 483
1853. .Frith o f Forth.......................
6
24
1853. .Portpatrick to Donaghadee.
25 1 0
18 3. .A cross River T a y..................
2
8
1854.. Portpatrick to W hitehead...
27 163
1854. .Sweden to Denmark.............
12
36
660
1854..
1.aly to Corsica........... 110
1854. .Corsica to Sardinia..............
10
60
1855.. E gypt.......................................
10
40
1855.. Italy to S icily.......................
5
15
1856. .Strait o f Canso to Cape Bre­
ton, N. S..................................
1} 4}
1857. .Norway across Fiords........... 49
49
1857 Across mouths o f Danube .
3
3
1857. .Ceylon to mainlando f India 30
80
1858 .Italy to S ic ily ...........................
8
8
560
1858. .England to H olland............. 140
1858. .England to H anover............. 280
560
1858. .Norway across F io r d s .........
16
16
1858. .8. Australia to K ing’ s Island
140 140
1858..
Ceylon to India...........
30
30
1859. .Alexandria..................................
2
8
1859. .England to Denmark............ 368 1,104
1859..
5 .e d e n to Gothland..
64
64
1859. .Folk>tone to B ou logn e .......
24
144
1859..
Across rivers in India. 10
10
1859 Malta to Sicily.......................
60
60

T o ta l.................................6,811 11,080}
T o ta l num ber o f c a b l e s ........
54

PETROLEUM FROM PITTSBURG.
The following statistics show the movement o f petroleum from Pittsburg. The
opening of competing avenues to the oil regions has deprived Pittsburg of some por­
tion of the oil trade, which, at its first discovery, neaily a’l passed through that
city ; nevertheless, the statistics possess much interest :
D i tribution o f R efined P etroleum f o r 1862 8, 1863-4, and 1864-5, Show ing E x p o rts by Corres­
p on d in g Quarters, f a r those yea rs, by R a ilro a d alone, to the va riou s Stales, f r o m P ittsb u rg .
Sept. ’ 62 Sept. ’ 63 Sept. ’ 64 Jan. ’ 63 D e c. ’ 63 D ec. ’ 64
to
to
to
to
to
to
Jan . ’ 68. D ec. ’ 63. D e c. ’ 64. A p r. ’ 63. M ar. ’ 64 M ar ’ 65.
P e n n s y lv a n ia ,................
................ b b ls 22,021
28,937
67.873
27.440
23,381
23,987
N ew Y o r k . .......................... .......................... 44,346
40.364
27.121
31,392
10,634
1,188
M arylan d................................ ..........................
5,545
2,273
3.918
7,104
7,150
3,125
M assach u setts...................................................
4,925
3,8.68
987
343
5,401
60
O h io ......................................... ..........................
895
357
1,377
1,455
1,560
2,293
In d ia n a ...................................
37
1,074
569
1,485
1,878
625
2,768
2,334
I ll i n o i s ...................... ........... ..........................
3,100
6,180
4,762
To oth er p o in t s .............. . ..........................
2,606
701
2,126
1,269
67
1,839
A p ril ’63 M ar. '64 Mar. '65. Ju ly ’ 63 J u n e ’ 64 Jun e '05
to
to
to
to
to
to
J u ly ’ 63. Ju n e ’ 64. J u n e ’ 65. Sept. ’ 6?. S e p t ’ 64. Sept '65
P en n sylva n ia ........................
59,138
40,717
16,805
14,290
62,617
N ew Y o r k .............................. .......................... 23.459
15,215
101,276
1,068
31,334
15,342
M arylan d ................................
4,093
427
962
518
4,720
M a ssach u setts..................................................
36
2,117
2,588
34
1,797
110
499
2,013
834
O h io ......................................... .......................
478
195
1,13-2
117
In d ia n a ...............................
..........................
307
2,461
5,432
349
857
I llin o is .................................... ......................
722
1,166
5,072
2,107
2,834
1,327
8S7
3,345
371
To other points............... ......................
978
9»4
1,091




1866]

241

Internal Revenue Decisions.
T otal D istribution o f D efined P etroleum .

T o E astern m arkets
T o W estern m arkets
Totals

1862-3.
246,384
17,533

1863-4.
279,004
29,183

1864-5.
286.727
27,776

263,917

308,271

314,503

Distribution o f Crude Petroleum f o r 1862-3, 1863-4, 1864-5, sh ow ing ex p o rts b y corresponding
quarters, f o r those years, b y ra ilro a d alone, to the variou s States, f r o m P itts b u r g :

S e p t.’ 62 S ep t.’ 63 S ept,’ 64 Jan. 1, Dec. 1, D e c .’ 64
to
to
to
’63, to
’ 63, to
to
Jan. ’63. Dec. ’ 63. Dec. ’64. Apr. ’63. Mar. '65. Mar.‘65
Pennsylvania...................................... bbls
31,523
24,039
50,276
52.139
9,046 18,904
New Y o rk .................................................
12,315
7,547
37,195
34,428
14,194
8,500
Maryland...................................................
4,707
9,998
17,412
10,895
7,430
11,731
Massachusetts..........................................
8,183
3,087
4,990
2.030
4,7:35
........
Ohio............................................................
67
965
251
1,210
290
1,193
Indiana......................................................
232
784
15
570
11
........
Illinois........................................................
417
820
492
2,693
177
.
To other points........................................
7
1,479
223
26
364
94
Apr. ’ 63 Mar. ’ 64 Mar. ’ 65 July ’63 June ’ 64 June ’ 65
to
to
to
to
to
to
July ’ 63. June ’ 64. June ’ 65. Sept. ’ 63. Sep. ’ 64. Sep. ’65
Pennsylvania.......................................bhls
62,090
38,765
19,453
22,451
34,322 27,790
New Y o r k .................................................
25,261
38,477
6,900
3,143
719
1,480
Maryland...................................................
6,347
12,266
7,246
6,815
3,607
2,160
Massachusetts...........................................
4,976
5.746
....
726
483
36
Ohio............................................................
3,S84
924
1,094
476
...
123
Indiana.......................................................
76
182
___
10
___
___
Illinois........................................................
1.477
....
....
792
To other p oin ts................................ . . . .
540
34
....
25
18
___
T otal D istribu tion o f Crude.

To Eastern markets.....................................................................
To Western markets...................................................................

1862-3.
288,059
12,418

1863-4.
214,819
5,571

1864-5.
166,917
2,304

T o t a ls ...............................................................................................

300,477

220,390

169,221

INTERNAL REVENUE DECISIONS-LICENSES AND SPECIAL TAXES.
The following, issued by the Commissioners of Internal Revenue, explains some of
the changes made in the Internal Revenue Law by the last Coogress with regard to
licenses.
T r e a s u r y D e p a r t m e n t , O f f ic e of I n t e r n a l R e v e n u e , )
W a s h in g t o n , Ju ly 31, 1866.
f
A ttention is hereby called to the changes m ade in the internal revenue law s relating to li­
censes, b y the act o f Ju ly 13,1866, w h ich act g o e s in to effect, so far as sp ecial ta xe s p ro v id e d fo r
in said acr are con cern ed, on the 1st o f A u gu st, 1866.
Licenses are abolish ed, and a “ special tax ” is su bstitu ted therefor.
By the p ro v is io n s o f section 80, it b e co m e s the duty o f assessors to reasses* any person , firm,
or com pan y h old in g licen se, fo r any e x c e s s o f the special tax substitu ted therelnr o ver tlie
licen-e tax w h ich has been paid, from the 1st day o f A u gust, 1866, ratably, up to the 1st day o f
May, 1867.
U nder these p ro v is io n s , person s havin g a lic e n s e as w h olesale dealers in liqu or, brew ers, dis­
tillers, and p rop rietors o f gift enterprises, w ill b e liable to reassessm en t from the 1st day o f
August, 1866. E v ery w h olesale dealer in liq u ors, fo r instance, w h o has paid o u t $50 for h s
license, w ill be im m ediately liable to reassessm en t fo r the n in e m on th s ending M ay 1, 1867, the
am ount o f reassessm en t b e in g $37.50.
A special tax is to b e assessed from the sam e d a le against distillers o f bu rn in g fluid and cam phene, grinders o f coffee and apices, and peddlers o f liq u ors. P ed dlers travelling b y pu b lic co n veyances are classed as peddlers o f he F o u rth Ciass. P e rson s w h o se b u sin ess it is to m anu­
facture cigars, snuff, or to b a c c o , in any form , sh ou ld he im m ediately assessed a special tax as
toba c o n i s t s ; bu t w here such pe rso n s n o w hold lice n se as m anufacturers, they w ill n o t be su b ­
ject to the special tax until the e xp iration o f th eir present lice n se s as m anufacturers, unless
they are engaged at the sam e tim e in the m anufacture o f oth er articles, in such m anner as to
he liable to special tax, b o th as m anufacturers an d to b a cco n ists. B u t n o special ta x is im p o s e d
upon jou rn eym en em ployed in cigar m anufactory.
Persons n o w licen sed a* to b a c c o n is ts sh ou ld b e a ssessed a special tax as w h olesale dealers
when their sales ex c e e d $25,000.
Any person w h o is engaged in the m anufacture o - preparation fo r sale o f any articles o r c o m ­
pounds, or w h o puts up for -a le in p acka ges, w ith h is nam e o r trade-m ark thereon, any articles
or com pou n ds, is liable, under the new law", to special tax as a m anufacturer.

Producers o f ornamental and fruit tress and charcoal, selling the same at wholesale, by them­




242

The Book Trade.

[September,

selves o r a u t h o r iz 'd agents, a t places o th e r than the p lace o f p rod u ction , are e x e m p t from
special ta x in respect thereof.
A ll boats, barges, and flats n o t used fo r carryin g passengers, n o t p ropelled b y steam o r sails,
w h ich are floated o r to w e d b y tu gboats o r horses, and u sed exclu siv e ly fo r carrying coal, oil,
m i .eials, or agricultural products to m arket, w ill be assessable under the n e w law, w ith an
annual special tax from an afier the expiration o f the tim e covered b y their present enrolm ent
fees and tonnage duties, in lieu o f such fees and duties.
Such b oats o f a capacity exceeding
25 tons, and n ot ex c e e d in g 100 tons, w ill be su b je ct to a special ta x o f $5, and when exceed in g
100 tons, to a special tax o f $10, said tax to b e assessed and c o lle cte d as oth er special taxes pro­
vid ed for in the act. T h e a b ove special tax on boats, barges, and fla s d o e s n o t h ow ever, affect
th e liab ility o f the propriet- rs to special tax as e xp ress carriers o r agents w hen d o in g business
as d escrib ed in paragraph 50 o f se ctio n 79 o f the act o f J u n e 30, 1864, as am en ded in the act o f
Ju ly 13, 1860.
W h olesa le dealers are required, as soofi as the am ount o f their sales w ith in th e year exceed
$50,000, to m ake m on th ly return o f sales to the assistant assessor, and pay the tax on sales
m onthly, as oth er m on th ly taxes are paid ; and in estim ating the am ount o f sales, any sales
m ade by or through another w holesale dealer, need not again b e estim ated and included as sold
b y the party for w h om the sale w as made. W h olesale dealers, n o w h old in g license, based on a
cert-lb am ount o f sales, w ill be liable to m ake m onthly returns o f sales as s o o n as their sales
ex c e e d th • am ount nam ed in the lic e n s e ; w holesale dealers in liqu or, as so o n as their sales
shall reach an am ount w h ich is less than the b a sis o f ih e ir licen se by the sum o f $37,500.
T h e b on d required o f lo tery dealers is further co n d itio n e d , b y the new law , that the dealer
w ill pay the tax im p osed b y la w on the gross re ceip ts o f h is sales, and the m anagers o f any lot­
tery, now or herea ter existin g, can g iv e the bo n d required.
Cattle b rok ers should be assessed on the e xcess o f sales o v e r $10,000, in the sam e m anner as
o f w holesale dealers.
U nder the new law, “ every p erson (o th e r than o n e h v in g paid the special ta x as a com m er­
cia l brok er, r cattle broker, o r w holesale dea er, o r retail dealer, o r p e d d le r ;) w h o se occupation
is to bu y o r sell agricultural o r farm prod u cts, and w h o s e annual sales d o n o t ex c e e d $10,000, is
to be regarded a produ ce b r o k e r .”
T h e paym ent o f a special tax o f a hotel-k eep er p erm its the person so k e e p in g a hotel, & c., to
furnish the necessary fo o d for the anim als of travellers o r sojou rn ers, w ith o u t the paym ent o f
an additional special tax as a livery-stable keeper
Law yers, w h o have paid a special tax as such, are ex e m p te d under paragraph 25 from paying
th is special ta x as real estate agents.
It the annual receipt o f an insurance agent shall not e x c e e d $100, a special tax o f $5 only is
im p osed u d< r the n ew la w ; and the paragraph relative to insurance b rok ers is o m itte d . No
special ta x is im p ose d b y the n ew law fo r sellin g tick ets o r con tracts o f insurance a . a n st injury
to person s w h ile travelin g.
A p oth eca ries, w h o have paid the special ta x as such, are n o t requ ired b y the law to pay the
tax as retail dealers in liqu or, in consequ. n ee o f selling or o f d isp e n sin g upon p h y -icia n s1 pre­
scrip tion s the w ines and spirits officinal in the U nited States or other national pharmacopoeias,
in quantities n ot e x ce e d in g h a lf a pin t o f eith er at one tim e, n or e x c e e d in g in aggregate cost
value the sum o f $30 i per annum .
N o special ta x <s required o f a co m m o n carrier b y the n e w law, w here the gro ss receipts do
n o t e x eed the sum o f $ i ,000 p er annum . D raym en and team sters o w n in g on ly on e dray or team
w ill n o t be liable to this tax.
By p rov iso to section 47 o f the act o f J u ly 13, 1866, brew ers are e x e m p te d fro n special tax as
w h olesale dealers, w hen selling at w holesale, even at a place oth er than their brew eries, malt
liq u ors m anufactured b y them .
M anual-labor sch ools and colle g e s are e x e m p t from special tax, as m anufacturers, w here the
p roceed s o f the labor ol such in stitu tio n s are applied exclu siv e ly to the su pport and mainte­
n an ce o f such in stitu tion s (se ctio n 18).
T h ere is n o p ro v is io n in the n ew law fo r refu n din g licen se taxes w h ere they ex ce e d the
special taxes p rovid e d fo r b y said law in re sp e ct to the sam e business.
N o , erson d o in g a business requiring paym en t •f special ta x under the n e w law should be
assessed therefor i f he n o w holds a lic e n -e co v e rin g a business o f the sam e nature, unless the
special tax p rovided fo r e x ce e d s the lice n se tax, in w h ich case the d ifference o f ta x should be
assessed im m ediately.
R e c ipts lor special taxes w ill b e furnished fro m i his office. N o m o re lice n se s w ill b e furnish­
ed. W h h sligh t alteration, receipts fo r special ta x e s m ay b e u sed as re ceip ts fo r licen se taxes
assessed under form e r law s.
E. A . k o l lin s .

THE

BOOK

TRADE.

T a x a tio n in the U nited K i n g d o m : Its L e v y and E x p e n d itu r e , p a st and p r e s e n t;
b e in g a n e n q u ir y in to o u r [ B ritish ] F in a n c ia l P o lic y .
B y S ir M orton P kto,

B a r t ., New Y o r k , 1). A ppleton & C o., Publishers.

Sir Morton Peto appears to be a writer o f some claim to rank as an expositor
o f fin .nee.

Not only has he aspired to treat learnedly the entire American policy,

but, freshly nibbling his pen, he plunges deep into the abstrusenesses o f British
taxation, as though to bring up pearls of great price from those waters.




Being

1866]

The Book Trade.

243

an admirer o f Sir Robert Peel, he cannot extol too highly the transcendent beau­
ties of free trade.

It has created a greater demand for manufactured goods, rais­

ing the price o f labor, and enabling the operatives to procure many articles for
consumption which were before inaccessible. This has increased again the vol­
ume of imports, and enabled the Government to derive from them a r venue
greatly exceeding the amount obtained under the protective system
Thus, in
1841, there were 1,162 articles paying duty at the Custom Houses, and the rev­
enue from them was £21,848,845 ; whereas, in 1862, when the number had been
reduced to 44, the revenue was £ 2 4 036 000.

The extension o f commerce effect­

ed by the remission of duties afforded additional employment to the people, and
the exports increased from £51,545,616, in 1841, to £135.842.000. in I860.
“ I'tee Trade” in the British nomenclature evidently signifies the exemption o f
breadstuff's and necessaries from taxation, and the levying o f duties on sp cific
articles o f import to such an extent as can be borne without checking their use or
leading to contraband trade.

The idea o f abolishing Custom Houses does not

appear to have any connection whatever with “ British Free Trade ”
But the burden upon the British nation, instead o f diminishing with their in­
creased prosperity, has actually increased from £48,000 000, in 1841, to £72,000 000, and has become also more offensive.

The income tax appears to have

been the most unacceptable, inflicting trouble, vexation, annoyance, and offering
an overwhelming temptation to evasion, falsehood, and even perjury. “ 1 short,
it may be said to have injured the moral sense o f the people who view offenses
against the levenue lightly, and are even disposed to espouse the cause o f those
who defraud the State.”
Meanwhile, there has been no reduction o f the national debt.

In 1860, there

fell in those terminable annuities to which the people had looked as affording
opportunity to begin ; but they were absorbed in expenditure without effecting
any saving to the country, and have only furnished a pretext for the addition o f
millions to the national debt since 1812. The expenditure has increased from
fifty to seventy millions o f ponuds— $100,000,000 in gold.
This is “ a war expenditure” increased for maintaining a war establishment in
time o f peace. Such being the fact, it would be necessary, in case war should
actually occur, to borrow money and impose new burthens on the nation to pay
off the interest.

But permanent burthens involve taxes which fall on trade

and industry, jeopardising the former and fettering the latter.

“ U p to a cer­

tain point such taxes may be borne, but they may go too far, as the case of
Holland has exemplified.”
To make a revenue which shall be sufficient for the wants o f a nation there
must be, first: measures which can effect such an improvement in the condition
of the people as will enable them to increase their consumption o f taxed com­
modities ; second, such improvements in taxation as to lighten its burthen on the
people ; and third, retrenchment o f expenditures. Accordingly, Sir Morton pro­
ceeds in due order to analyse the several modes o f taxation employed in Great
Britain, and their specific operation.

Beginning with customs’ duties, he shows

by the example o f tea how a rate o f duty has been made prejudicial to com­
merce ; and by that o f tobacco how the rate of duty is prejudicial to revenue.
The cost o f tea in China does not exceed seven pence halfpenny a pound.




The

244

The Book Trade.

[September,

British duty is 200 per cent upon the cost and 100 per cent on the average price
in London.
In New Y ork , tea costing, after payment o f duty, 78 cents a pound in currency, and affording the importer a profit of 12 cents, yields to the broker and
retailer the additional sum o f 60 cents. So sensitive is this article that dim­
inution o f the duty in England in 1746 to one-half, actually tripled the importa­
tion; and a further reduction in 1784 doubled it ; whereas a slight increase at a
subsequent period only led to smuggling and adulteration.

The tobacco duty has

served to direct the bulk of the trade into the hands o f the smugglers. The first
cost is about fourpence-halfpenny a pound, and the duty 3s. l | d . ; andffive ninths
o f convictions for smuggling were in the matter of tobacco.
Some years ago a reciprocity treaty was made between Great Britain and
France. F or a century and a half the protective policy had ruled, to the detri­
ment o f revenue, and of manufacturing and commercial policy. O f so little prac­
tical use was it, that English watchmakers actually suffered from competition with
smuggled watches. When the duties came to be reduced, while imports from
France were largely increased, more than three times the former amount o f British
manufactures found a market annually in that country.
The income tax was imposed in 1842— 9d. in the pound on incomes o f £150

a year, and

6 d . on those between £ 150 and £100.
Sir Robert had great mis­
givings about this impost, acknowledging that it was “ unpopular,” “ obnox­

ious,” “ inquisitorial,” and justifiable only when required by a political necessity
o f magnitude It has never met expectations, always producing less revenue than
had been estimated, or than ought to have been produced. Indeed, it effects a
depreciation o f property, being in itself a confiscation o f property.
The reduction of postage, with all its benefits, has been a serious detriment to
the revenue; having fallen from £1,659.510 in 1838 to £500,789 in 1840, and
being only £1,525.311 in 1861. Indeed, the net revenue was only £576,030.
The expenses o f the postoffice department have increase ! under the new system.
The best efforts of English statesmen have been put forth to relieve trade and in­
dustry from the operation of the old excise duties. The result of these duties had
been inferiority in articles of manufacture, and consequent loss of markets. The
duty on glass was first repealed with striking advantages, as the exhibition at
the international exhibitions evinced. The auction duties were next repealed.
They had come to produce little revenue from being constantly evaded. Then
followed the repeal of the duty on bricks, then on soap, with manifest advanta­
ges. The impost on paper, and that or. hops have since been taken off. but at a
period too recent to state results. Experience has shown that excise duties may
be so applied as to be the most baneful and obnoxious of all taxes. The spirit
and malt taxes still continue. A tax is also laid on railway passengers, which
pioves easy to levy— indeed, too easy. Licenses on carriages are still in force.
A b ou t £1.500,01)0 is yearly realized from licenses to carry on a trade. The prin­
ciple is a vicious one.
The assessed taxes are among those most cheerfully paid and most readily
collected. The articles assessed are servants, carriages, horses, dogs, horse dealers,
hairpowder and armorial bearings. The rates were reduced in 1853, without at
all diminishing the aggregate o f revenue. The house-tax was substituted in 1857
for the window tax, with marked advantage. The land-tax, first imposed in
1688, at four shillings in the pound, has been continued, under various enactments,
till the present time, without material change in the aggregate, although the rate
has been only nominal.




1866]

The Book Trade.

The stamp duties were borrowed from
great modifications. A t present the sugar
The attempt has been made to prohibit
enues for collecting them. I t has not yet
1861 show s:

245

Holland ; they have also undergone
duty is the most productive.
the payment of officers from the rev­
succeeded, as the following table for

Custom s ...................................................................................
E x cis e .........................................................................................
Stam ps.............................................
T a x e s ..........................................................................................
Incom e ta x ..............................................................................
Post-offices ..............................................................................
Crown lands.........................

G ross
re ce ip ts.
£23,'157,513
20,133,5189
8,626,014
3,148,754
11,158,883
3,528,427
417,440

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

£70,671,620

P a ym en t to
E x ch equ er. D ifference.
£22.755,338
£S92,175
17,266,586
2,867,403
8,307.287
818,727
2,927,673
221,181
9,687,750
1,471,133
6,351,669
2,176,758
293,419
113,961
£62,599,682

£8,061,338

Sir Morton devotes the second section o f bis book to the subject o f e x p o I.
iture. In 1792 the total annual expenditure of the United Kit gdnm was £19.859 •
123, of which £9.767,333 was applied to interest on the national debt, £2.421 6 <1
to redemption o f that debt, and £7,670 109 for public expenditure— an am > nt
which was then considered excessive. The war increased it to £61,329 179 in
1801, and it ran up to £106,832.260 in 1814. Since that time the amount ,.us
been reduced to £49.169.552 in 1840. I t was increased by the Crimean War io
£84,505,788 in 1855, and on the restoration o f peace it has not been reduce 1 to
the old peace-footing by £66.120,092 in 1861. The army in 1862 cost £ 15,.
302,870; the navy, £12,608.042 in 1861; miscellaneous expenditures in 1862,
£7 848,297 ; while the interest on the national debt, in consequence o f the fallingin of the terminable annuities, fell to £26,000 000. During the last half century,
though the nation has wonderfully increased in wealth, there has been no weildirected effort to reduce the debt. Yet a century ago, when the debt was but a
tithe of its present amount— £80,000,000— Bolingbroke deprecated its existence
as reflecting on the dignity o f the Dation, and Hume as threatening its very exist­
ence. Y e t even now Sir Morton is of opinion that it could be reduced, if ne­
cessity required
W hy no reduction has been made, he considers attributable to
the following causes:
1 In the fact the levy o f taxation, in consequence o f the war, had become so
burdensome upon the people and so restrictive upon trade as to make it a primary
necessity to reduce its amount and improve its character.
2 In tl e fact that the expenditure o f the nation has at no time been reduced
within such limits as would leave a fair proportion o f revenue applicable to the
object.
In future wars, the struggle must be more costly than on any previous occa­
sion. The entire burden cannot be obtained in the form ol a levy o f taxation,
but must be raised by an addition to the debt. That debt, being now £800,000,000,
is in the way of success. There must be a limit somewhere to taxation. I f a
war should be commenced and the present debt run up with rapidity till the tax­
ation necessary to defray the the interest and expenses is a burden upon the
trade and industry o f the Dation, either the country will be obliged to conclude a
disadvantageous peace, or the people and nation will be reduced to a slate o f
the most direful distress.
The fact is, that o f late years finance has not been treated in Great Britain as
“ agreat policy.” Taxation has been levied to suit temporary exigencies ; no
principle has been applied to its levy or its expenditure, but everything has been
adapted to party objects and temporary requirements. Since 1848, Parliament
has exercised very little control over the public expenditure. Estimates are sub­
mitted by the Government, and the amount demanded is voted in a lump, with­
out apparently the smallest knowledge o f the way in which the money is to be
applied, as though all that was necessary was to provide the amount. A n im­
mense amount of the revenue and expenditure is wasted for waDt o f well-considcred plans.




The Book Trade

246

[September,

The unavoidable inference from Sir Morton’s statements is, that the British
nation is ha tening to d eca y ; and without a change in its policy, must speedily
become incapable of arresting its own destruction. A t the same time, the legis­
lators of America, those o f Congress and o f the several States, will do well to
consider whether they are not carrying their taxing power too lar for the con'inuation o f the prosperity of our own ocople. There is a limit, beyond which ruin
is inevitable, and, as he suggests, we may be nearer to it than we imagine.
R e s o u r c e s a n d P ro s p ec ts o f A m e r i c a :
A scerta in ed d u r in g a v isit to the States
in the A u tu m n o f 1865.
By Sir Morton P eto, Bart., M. P. for Bri-tol.

New Y ork : Alexander Strahan & Co., 1866.
Sir Morton P eto declares nis object in his work on America to be to afford
his British countrymen an opportunity of forming a more correct judgment of
the oregress, means, and probable future of the great nation on the other side
of the Atlantic.

H e has drawn liberally on the American Census o f 1860 for

his m aterial; freely criticising and differing from the conclusions there pro­
pounded, and loses no opportunity to show that what is required for the fullest
development o f prosperity this side of the Atlantic is free trade.
While the
Superintendent o f the Census appears to doubt whether the Western States are
capable o f supplying the steadily increasing home demand for breadstuffs, as well
as having a surplus to export, Sir Morton believes that they will always have
quite a surplus.

H e shows this by an argument, baaed upon the fact, as he

states it, that the price in the dearest market must rule in other markets, and
hence infers that the European prices will be such as to enable those States to
produce wheat at a profit, which the simple demand at home would not afford
them

He then argues ingeniously for giving them abundant facility of com­

munication to those markets— the lowest remunerative price for carriage, and
the absolute certainty o f speedy transportation— which would, he declares,
enable them to grow wheat at a profit, and so stimulate production as practically
to ensure an unlimited supply. Doubtless the Atlantic and Great Western Rail­
way will, in his estimation, ensure such facility.
Sir Morton next gives a full summary o f the products of this country,
manufactures, mines, coal, petroleum, &e., after which, he takes up American
shipping.
H e speaks admiringly o f the facilities for navigation afforded by
our harbors, rivers, and lakes, and then reminds his readers that, during the
Napoleonic wars, our tonnage rose to 850,000.
‘ ‘ I f America had not gone to
war with Great Britain in 1812,” he says, with secret exultation, “ it is probable
that she would have retained, to this day, her great ascendency in general com­
merce. But she lost the great opportunity by inviting war, and has never resumed
it.

Our navy swept their commerce from the seas ; and, two years after the

outbreak of this war, the Americans had only 59,700 tons of shipping engaged in
foreign trade instead o f the 1,100,000 tons employed seven years previously.”
Is Sir Morton aware that Americans are vividly awake to the fact that
vessels built in British ports with the full knowledge o f the Government, i> not
with its consent, “ swept their commerce Irom the seas within two years after the
outbreak o f the civil w a r?” He alludes to the transfers made by American
shipowners o f their property to avoid captures, with an amusing appearance of
unconsciousness ; and again takes opportunity to show that our failure to advance




1866]

The Boole Trade.

247

our foreign trade is owing to the restrictions and limitations placed on American
shipping.
Nevertheless, Sir Morton is onr friend, although he sees with English eyes,
and he takes favorable views when he can.
He is, evidently, as much gratified
with onr prosperity as if it was that of his own country. In his review o f our
commerce, he declares his entire conviction o f our certain prosperity.

H e notes

that our trade has been regularly and steadily progressive, and that the nation
has uniformly paid its way'— the exports in almost every year having exceeded
the imports. Even with the increased export o f gold, every other native p r o ­
duct increased in proportion from year to year. M a -y unsophisticated persons
will be surprised to learn that onr imports do not principally consist o f articles
of luxury. “ It cannot be said that articles of luxury enter largely into the
count o f American importations.
Silk dresses and furniture appear to be the
two items most largely in demand. But no jewelry is found in the list o f imports,
and very little plate.”
But the export and import trade of the United States is nothing in compari­
son with her internal trade. The extent o f territory implies great diversity o f
productions, and the the exchange of these makes an inland trade almost as vari­
ous as that of Great Britain with her colonies.
Sir Morton considers that the
inland navigation is very inadequate to the wants o f the oeopK and that but for
the railroads thetproducing districts would be at a stand still for want of means
of transportation.
A chapter is devoted to trade with the British Provinces. The Commercial
Convention at Detroit, which is by us regarded as almost a fai ure is his prin­
cipal reliance in relation to our public sentiment
He reviews the Reciprocity
Treaty, taking the same views substantially that have been tak-n in these col­
umns. and ably controverting the declarations of Mr. Morrill, o f V rmnnt.
Upon the lailway system and management, where Sir Morton is at home, his
views are entitled to more careful consideration. H e criticises very justly the
imperfect construction o f the roads, the miserable stations, &c., and the fact Ihat
the lines were made without regard to any general system o f communication tor
the country. The accommodations do not meet the wants o f the nation. H e
remarks the hostility of the South to railroads
W hile the Northern States are
covered with lines, the Southern have only a few main trunk roads, the great­
est care having been taken to prevent those lines from communicating with the
Iree States. “ It will be necessary to correct all this.” From W est to East the
present facilities are quite insufficient, and no time should be lost in making ad­
ditional provisions. Railway facilities are the measure o f the prosperity o f the
country. But there must be a large liberal progressive policy. The American
public ought never to be satisfied till they are able to calculate on fixed moderate
prices for freight, and fixed periods for the delivery. Sir Morton very justly
questions the propriety of express companies officered by railway managers, and
carrying for high prices, when the profit ought to go to the owners o f the lines.
The 7th section is devoted to the South. After contrasting the disproportion
to the North, owing to the failure to develop the resources, he gives his opinion
that the South w>il henceforth prosper much better under the system o f free labor.
The Northern States have declined to hold her as conquered territory, but
acknowledge her place in the common nationality ; and nothing is wanted but
the stimulant o f free institutions. “ Within five years from the present time
the cotton production of Am erica will be doubled, and the consumers of the world
will have the article at a less price [?] than they ever had it before.” W ith
facilities for bringing to market the breadstuff's of the North, and the restoration
and increase o f the product of the cotton plant in the South, “ not ODly will
America bear with even all the burden of her debt and pay it, but she will im­
mediately commence a career o f commercial prosperity unexampled in the experieuce of nations.”




The Book Trade.

248

[September,

R e c e n t B ritish P h il o s o p h y : a R e i i e w w ith C r itic is m s , in c lu d in g som e com m ents
on M r . M i l l ’s a n s w e r to S i r W i lli a m H a m ilto n .
By D a y i d M a s s o n . New

Y ork : D.

A ppleton

& Company, 1866.

German scholars are said to have a species o f maria for translating F au st;
American divines seem to be fond o f coinbatiing “ Rationalism
and English
lecturers take every opportunity to write and talk about metaphysics. Y et they
are born to waste much o f their sweetness on a very desert air, partly from the
aridity o f their subject, but chiefly because the reader and reviewer must first
learn their specific technology before attempting to learn or set forth their
ideas. Mr. Masson will hardly escape. His fault, however, consists less in the
diction which he uses than in the profusion of words with which he dilutes his
thoughts. Y e t, those interested in such questions will read him with interest.
A lter a cursory view o f the Empirical and Transcendental systems and a notion
o f the writers who taught them, he devotes the great part o f his work to Sir
W illiam Hamilton and John Stuart Mill.
Sir W illiam, he declares, was a Theist, a Supernaturalist— no philosopher of
modern times more strenuously, more passionately so. H e venerated Hume as a
good man and a great philosopher, and entertained little respect for the clergy,
yet, at the same time, had a special admiration of Calvin, and 4 profound inter'
est in the old theologians, from Tertuliian downward. H e held in the existence
o f Truth beyond what appeared to the senses— phenomenal existence. “ The
sphere o f our belief,” said he, “ is much more extensive than the sphere of our
knowledge; and, therefore, while I deny that the infinite can by us b e known,
I am far from denying that by us it is, must, and ought to be b eliev ed ." Y et, be
positively declared that it was impossible to speculate about the Absolute. Sir
William holds that the central fact o f the phenomenal o f dualism or antithesis of
two series o f phenomena, given immediate y in consciousness—the one constitu­
ting the ego or mind, and the other, the external world or matter. But here Mr.
Mill takes issue. H e holds that the radical fact of the phenomenal is not a dual­
ism at all. but simply a stream, a flow, a succession of feelings, sensations, or
states of consciousness. A ll knowledge, all belief, all known existence has been
generated out o f this succession o f sensations, or states of consciousness. Hence,
after some further illustrations, M r. Masson concludes that T ra n s ce n d en ta l N a t­
u r a l R e a lis m in Hamilton, announcing itself as anti-ontological, but with strong
theological sympathies, and E m p ir ic a l C onstructive. Id ea lism in Mill, also announc­
ing itself as anti-ontological, but consenting to leave the main theological ques­
tions open on certain pretty strict conditions, were the two Angels that have for
thirty years contended for the soul o f Britain.
The remaining three chapters o f the book are devoted to further demonstra­
tions of the author’s positions, and notices of other metaphysical writers. He,
however, does little more than exhibit them ; taking no pains to show any inac­
curacy or proper conclusions.

C O N T E N T S

FO R

S E P T E M B E R

No.
PAGE,
PAGE.
169
9.
Jou rn a l o f B anking, C u rrency, and
F i n a n c e ............................................................215
2. T rad e"of Great B ritain w ith th e tfn iie d
S t a t e s .............................................................. 184 10. T h e U n ited S ta le s D e b t ............................236
3. Pitisburtr— Its Present and F u tu r e ___ 189
11. T h e M ex ica n F in a n ce s .............................. 237
4. T rad e w ith B ritish A m e r i c a ................ 193 12. T h e B ic e C rop o f 1866................................ 238
5. T h e A m en d a tory T ariff B ill ..................... 210 13. S nark F ish in g in N o r w a y ..........................239
6. Analyses o f R ailroad R e p o r t s ...................213 14. S ubm arine C ables o f the W o r ld ............240
15. P etroleu m from P ittsb u rg ..........................240
7. F oreig n T rad e o f N ew Y o rk fo r the
year en din g J u n e 30 .................................. 225 16. Internal R ev en u e D e cis io n s ......................241
8. C om m ercia l C h ron icle a n d R e v ie w ___ 228 17. B o o k T rad e. ................................................ W

NO.

1. M on ey a n d B a n k s ....................................