« EelmineJätka »
Be, Dorothea, the tie! We firm will hold to each other;
For men honour still those People, firm and resolved,
Who for their God and their laws, their homes, their wives and their children,
Fought and repell'd the foe, or banded fell and unvanquisht.
Thou art mine; and Mine now is mine more truly than ever;
Yea, and were all like-minded with me, Force quickly would come forth
FINANCIAL AND COMMERCIAL REVIEW.
It is now rather more than a year since the effects of the British commercial revulsions, which commenced with a fall in the prices of corn, towards the close of the month of August, 1847, were felt in this market. The decline in prices which followed the enormous corn speculation of that year, although not the cause of the insolvency of a large proportion of the merchants of England, was the immediate agent in developing its existence. The effect of that description of credits was severe in London. Money became exceedingly scarce, and those whose outstanding obligations were large, competed with each other for the means of discharging them, and all rivalled the rail-road companies, the calls of which were large, to an extent which carried the rate of interest to an extraordinary high figure. Since that time there has been a great and rapid depreciation of property and securities of all descriptions, a curtailment of enterprise, and a consequent diminishing demand for capital, until money is now again in the London market 1 a 24 per cent., and the bank minimum rate 3 per cent. Political causes have mostly produced these disastrous effects, and are to be enhanced, in all probability, by a short harvest and dear food. The rail-way operations in Great Britain have been for several years of an immense magnitude, and the sums they have absorbed almost incredible. Up to December, 1847, the amount of capital actually paid in, was £121,641,584, and the debts of the several companies amounted to £39,541,895, making an aggregate of £161,156,479, or at an exchange of $4 80 per pound, $657,518,435. The aggregate amount authorised is £334,287,395, and the amount of stock created £196,243,541. These vast payments have absorbed the surplus means of almost all classes of dealers, capitalists, merchants and manufacturers, who held railway stocks as deposits to be made use of as urgent wants required. When political events checked the operation of their regular business, they found that stocks of this de
scription could not be turned into money, except at an immense loss, and it became a matter of calculation to some, whether it would be more advisable to dispose of their goods or shares at a sacrifice. The sales of stock made, involved a loss of 10 shillings upon every 20 shillings of paid-up capital. This does not include the loss accruing to those who bought this description of stock at a premium. Such a state of things could not fail to exercise a most prejudicial effect on trade, and particularly on the home market. More especially, that unusual quantities of goods have been sent from the countries of Europe to England to realize money, and the exports of British goods having declined to a very considerable extent, as indicated in the following official figures, for the first eight month of the year, for several years:
EXPORTS OF GREAT BRITAIN, eight moNTHS, ENDINg september 5.
4,733,764.. 4,542,190.. 5,092,309.. 3,896.687.. 3,409,739
Linen yarn,.. Machinery, Iron and steel,.
614,720.. 4,601,699.. 558,808..
725.458.. 5,122,807.. 643,344..
3,525,22 373.850 3.709.161 410 815
£31,379,832 £31,548,051 £30,241,680 £31,077,550 £26,257,758
The month of October last year was one of very disastrous business, and this year there is a small increase upon the business of that month. The approach of the cholera also tended to depress commercial enterprise, and to promote a hoarding of the precious metals, and a diminished demand for the products of industry. In France, also, a kind of panic exists from the strife of parties in relation to the presidency, and holders of produce are desirous of selling it for money to hoard. The export of bread stuffs from the northern departments to Eugland, is therefore considerable; and while it depresses the prices in those parts, aids to promote a continued current of the precious metals to France. Throughout Europe, to a greater or less extent, the desire is to turn whatever is possessed into specie, and hold on to it. It is true, that in the hands of immigrants, considerable portions of this arrives here, and passes into circulation; but there is aL export demand at a price not warranted in the present state of commercial exchanges. The lessened demand for goods causes a decline in the great staple, cotton, that is severely felt at the south, but with that exception, the surplus of the United States consists in articles, which, whether war or pestilence, or both, devastate the old world, must be had, and the export of them is such as to afford a supply of bills beyond the wants of trade, and the rates have been steadily falling.
547.164.. 6,152,800.. 612,393..
The following is a table, from official sources, showing the imports and exports of specie at the port of New-York, the monthly duties collected, the amount of specie in the assistant treasury at the close of each month, and the price of United States 6 per cent. stock at the same time:
IMPORT AND Export of specie, &c.—PORT OF NEW-YORK.
102 734,060.... 93. .11
1,738,554.... 2,305,017 40,502.... 433,226.... 2,416,497....
96. 91 9 186,411.... 1034.
Week ending November 4.
ling. 536.754....102.... 8 372,246....104.... 10 105,569....104 ....11
Total.......$1,236,400 $14,639,329 $22,164,285
These figures, for the specie, show only the quantities entered at the New-York custom-house. Very considerable quantities-probably $5,000,000-went from here to Boston, to go by steamers, and do not appear in these returns. Now, it will be observed that the sudden export last year of $3,000,000 produced this stringency of the market indicated in our number for January, 1848, page 83, when money was quoted at 2 per cent. per month; yet, under the continued operation of those elements, the market is recovered, and very much easier now than it was in November last; that is to say, it is easily had "at call" at 6 per cent.; and good autioneers' paper is done at 9 per cent., and the general run of paper 10 percent. United States stocks, which fell in December to 984, have risen 9 per cent., or 6 per cent. clear of dividend, and exchanges rule much lower. The prosperous state of the federal treasury has enabled the Secretary to notify that he will not want any further instalments on the loan of July last until January. This, in addition to the large sales of stocks abroad, and the payment of the four instalments, amounting to over $1,000,000, to the claimants under the Mexican treaty, have much relieved the stock market, and aided in the above rise. It will be observed, that although the treasury notes are by law convertible, at the option of the holder, into a 20 years stock, there is a difference of 3 per cent. in the price. This arises from the fact that the stock is sold with the interest, while the treasury notes interest in addition. The stock has now near five months interest accumulated. The issues of stock at Washington to go abroad, have, in the last five or six weeks, been as follows:
. 1,073,700 526,300 496,700
These, together, make $3,368,050, of which but a small portion was on account of the $3,000,000 sold in London, by Messrs. Corcoran and Riggs. Other parties have taken the lots for almost all countries of the continent. Mr. Pakenham, the British Minister, took $40,550, and Madame Weiss, for the dancing troupe of Viennoise children, took $47,000. This is the nature of the issues, viz.: to bona-fide holders, and not to stock-jobbers. The bills drawn against these sums have been in the market, and materially influenced the rate of exchange. The market has remained thus steady, and recovered to a considerable extent, while our foreign connexions have been disturbed by two such powerful causes as the English revulsion, and almost general mercantile bankruptcy, and the European revolutions, involving similar commercial results in that quarter. In the same time, in addition to the above $21,796,285 taken from this market in specie for duties, the government has taken in specie for loans, $18,828,770, making $40,625,055 of specie taken by the gov ernment, in addition to $18,000,000 exported; say, together, $58,000,000; and the money market is easier, interest and exchange lower, and stocks higher. Can any circumstance more strongly indicate the soundness of our general business, and the conservative influence of the independent treasury? The receipts and disbursements of the federal treasury, inspecie, from the operation of the law to the 1st of July, have been as follows:
SPECIE RECEIVED AND DISBURSED BY THE FEDERAL TREASURY.
Total, Jan. 1847
.20,833,058........ . 4,630,309........73,689,883
The Treasury statements for the quarter ending with September, has appeared, and the general result is a revenue of $9,581,000 for the quarter, from ordinary sources, and an expenditure of $14,577,542 exclusive of debt, leaving a balance of $5,500,000, which was more than defrayed by the instalments called in from the $16,000,000 loan. The revenue and expenditure for the year, have been as follows, quarterly':
UNITED STATES REVENUES, YEAR ENDING SEPTEMBER 30.
1,446.978 6,698,470 2,395,066 ..3,371,928 8,564,852 2,979.022
Month June. 3,243,064.
The revenue of the country derived from ordinary sources has been, it appears, $32,841,279, exceeding by $7,000,000, the average annual expenditure in time of peace. The expenditures for the past year have been as follows:
UNITED STATES EXPENDITURES, YEAR ENDING SEPTEMBER 30.
Civil List, War
August, 1847.... 80,740,677
Nov. 11, 1847.... 80,558,529.
Total. .2,012,450.... 8,307,790 .5,387,820. 4,643,300.
Total, 1848.....$7,849,531 25,313,304 9,988,509
9,519,452 2,199,277 54,870,173
1845..... 5,619,207 9,533,203 6,228,639 7,548,127 1,040,032 29,968,206
Included in this is the sum of $3,000,000, paid in specie at the city of Mexico, being the first instalment under the treaty of peace. The $800,000 of debt paid during the last quarter is the amount of Treasury notes taken in New-York from Mr. Morgan, in exchange for specie. The whole expense of the Government in 1845, the last year of peace, was, exclusive of debt, $22,500,000; for the next four years, during which the Mexican instalments are payable, this amount must be increased by $3,000,000 for instalments, and $1,000,000 interest, making, say, $27,000,000, and other extraordinary expenses will raise the expenses of 1850 to $33,213,152. As it appears, however, that the ordinary revenue for the present year, is $32,841,279, there will be a surplus of $6,000,000 per annum. for a sinking fund to extinguish the war debt which would be effected in seven years. The probability is, however, that with the increase of the export trade of the country, to supply Europe with produce, the returns of dutiable goods into the country will be such as to enhance the custom revenues, and swell the amount. Notwithstanding that, the soldiers' land warrants will, to some extent, diminish the proceeds of the public lands. The returns of the banks of the State of New-York for the quarter ending September 30, 1848, as compared with previous returns, show leading features as follows:
BANKS OF THE STATE OF NEW-YORK.
Balance Specie. Circulation. Deposites. due banks. .11,983,124 ........25,091,683....36,781,080....10,830,465
64 13, 1847.... 82,561,614.... 7,418,928....25,870,131....35,669.795.... 6,116,878 March 4, 1848...73,921,811.... 6.722,326....23,047,826....29,741,507... June 24, 1848.... .72,318,986.. Sept. 30, 1840...73,503,787.
6,751,338....20,718,825....27.650,590.... 5,663,958 5,721,134....22,601,051....28,835,024.... 4,165,416
This indicates an immense curtailment of credits, the banks owing the aggregate of circulation deposites and banks $55,601,471 against $72,703,228 in August, 1847. While this curtailment in the borrowing of the banks has taken place, they have loaned $7,200,000 less to the community. That which operates upon the abundance of money in the market, is the state of exchanges between the conutry and city; and the balance of payments due to or from the country is indicated in the balances between the country aud city banks. The following figures show the state of affairs at different periods:—
"from city banks.....
The amount due on the 1st of November last year to the country was considerably larger than usual, and the drafts of the interior institutions upon the city from November to January, simultaneous with the demand for specie on foreign account, induced by the state of affairs in England, caused that scarcity of money then so severely felt in the city. It will be observed in the above table, that the aggregate balance due banks in other States, by those in New-York, diminished from near $11,000,000 in August. 1847, to less than $4,500,000 in March. In that period the banks in New York paid bank balances $6,500,000, deposites $7,000,000, and circulation $2,000,000, making $15,500,000 to do which they parted with $5,200,000 of specie and called in $6,800,000 of loans.
In addition to the demand last year for specie to ship to England and Europe, a very considerable portion of United States capital became paralyzed, through the fact that the exports to the north of Europe and England could not be sold; hence the shippers were exceedingly cramped, at the same time the desire to realize goods abroad, induced the sending of them here to sell to a greater extent than otherwise would have been the case. From these three causes chiefly, the foreign trade operated to lessen the availability of capital invested in produce, and to produce a demand for investments in goods to the extent of at least $50,000,000, purely through political causes. While the interests concerned in the foreign trade have been thus affected, the internal demand for money has been very great. At the eastward the demand for capital centered in Boston, has been in two years near $60,000,000 for railroads and public works. The following is a table of the Railroads of Massachusetts:
Grand Junction........1,200,000 1,000,000 411,175
Hartford and N. Haven,
VOL. XXIV.-NO. CXXVI.
MASSACHUSETTS RAILROADS, WITH THE DIVIDENDS OF LINES IN OPERATION.
Capital, Increase in Paid in
Berkshire Railroad.... 500,000 100,000
Boston and Maine.....2,300,654/ 593,800
Cape Cod branch..... 500,000
Dorchester and Milton,
368,979 7 64,885 74,265
Fall River... *Fitchburg..
Fitchburg & Worcester,
11,630 117,009 106,064 106,164
Debt pr. ct. Income. Expense. 2,199 7 42,000 let. 100.790 8 448,556 253,408 338,589 9 117,000 7 747,357 10
2,250,000 1,022,220 S 424,880
Sept. 30, 1848.
3,594 20,853 11,354 175.473 ४ 390,736
511,504 220,260 363,328 175,345
68,900 let. 160,083 let. 77,986 209,130
10 157,335 96,937