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COMMERCIAL CHRONICLE AND REVIEW.

COURSE OF BUSINESI-IMPORTS-DUTIES-TIPORTE--EXCESS OF IMPORTS-PAYMENTS IN CON

SPECIE MOVEMENT-EXCHANOE-RATES OP-PAPER MONKY-PAYMENTS FROM TREASURY-- PRICE OI STOCKS AND GOLD-TABLE OF PRICES-EXCHANGE Or 7.30's-GOLD NOTES-SUPPLY OP PAPER -RATES OF MONEY-NEW YORK STOCK-HION PREMIUM-FINANCIAL SITUATION-RECOVERY IN CIRCUMSTANCES-LOAN OF PAPKR-ERROR# OP OOVERNMENT-NO SUBSCRIPTION TO LOAN-SECRETARI'S REPORT-STATE OF FUNDED DEBT-ALL PAPER MONEY-CONVERSION TAILED-STOCK FROM EUROPE-ACTUAL TALL IN GOVERNMENT STOCKS-AGOREGATE EXPENSES-CALL FOR MORE PAPER MONEY-GOVERNMENT BANK-DEPENDENUL ON PAPER-EFFECT OF PAPER ISSUX-IT DESTROYO REVENUE-IT INCREASES EXPENSES-FORCED LOANS-PRODUCTION THE BASIS OP TAXATION -WAR DESTROYS PRODICTION -DEPENDENCE UPON CUSTOM-BA818 OP CUSTOMS REYENUE WANT OF CONFIDENCE-DISAPPEARANCE OF GOLD.

The course of business has, during the month, exhibited an improving tendency. The long continued abundance of money and the reduced stocks of goods have naturally brought about a greater demand for the most necessary descriptions. It is true that the anticipation of a more liberal demand for goods from the South, consequent upon the opening of ports and the progress of the armies, has not been justified to the full extent; but the indispensible wants of great numbers of people gradually make themselves felt, despite the utmost economy. There has, therefore, been some revival in manufacturing industry, and an increase in the importation of foreign goods, as seen in the following table:

IMPORTS, PORT OF NEW YORK,

-Entered forSpecie. Free goods. Consumption. Warehouse. Total. January..

$163,658 $2,552,050 $6,663,396 $3,141,725 $12,6200,829 February..

62,0..7 3,381.473 7,058,174 8,370,486 13.872,140 March

89,327 3,476,004 10,312,689 4,841,846 18,719,866 April.

26,152 2,232,315 7,141,197 3,853,218 13,252.682 May...

110,383 1,146,093 8,091,120 4,600,920 12,948,516 Total, 4 months.. $151,532 $13,047.935 $39,366,576 $19,808,195 $72,914,238

1861....... 20,522,515 15,095,389 30,165,694 25,426,536 91,210,143 Exclusive of specie, the entries of goods are but little more for the whole period of five months than they were last year. The quantities of goods put upon the market this year are nearly nine millions more than last year, or, with the duties, they have been as follows:

1361..... 1862.

Goods on market,
$62,6711,346
71,452,613

Duties
$9,700,272 54
20,898,460 89

Per cent.

15.4 28.6

These duties show the change from the old to the new tariff, and the charge is nearly doubled on goods imported. The exports from the port of New York have been as follows for the same period :

EXPORTS, PORT OF NEW YORK,

January. February March April... May....

--Foreign-
Specie.

Free.
Dutiable, Domestic

Total.
$2,658,374 $27,193 $149,493 $12,053,477 $14,948,437
3,776,919 49,066 203,757 10,078,101 14,112,843
2,471,233 65,388 458,917 8,985,176 11,980,714
4,037,675 56,350 607,678 8,002,094 12,703,797
5,164,536 76,971 752,797 9,837,693 15,342,097

Total, 4 months.. $18,108,737 $274,968 $2,197,642 $48,966,541 $59,517,888

1861...... 3,005,196 1,036,847 2,534,586 51,207,009 57,783,638 The marked feature is the large increase in the export of specie, exclu sive of which the exports correspond with the imports as follows:

1861.

1869. Imports

$70,686,628 $72,462,706 Exports..

54,778,442 51,409,161 Excess of imports.

$15,909,186 $21,054,855 The decline in the prices of grain has involved the export of much larger quantities to produce the same amount of exchange, which has been scarce, and gold has been freely shipped to make up the deficit, which has been further increased by the tendency of stocks to come home from Europe for sale, in consequence of the inflation of prices caused by the paper issues here. The financial course of the government has not been such as to inspire confidence, and a very large margin existed between the prices of stocks in London and in New York. The specie movement was, therefore, progressive, as indicated in the following table :

SPECIE AXD PRICE OF GOLD

a 4 prem.

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815,524

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1862.Received. Exported. Gold in bank.

Price of gold. $442,147 $23,983,878 2 $885,923 1,035,025 25,373,070 4 a 6

647,703 26,120,859 4 a 41 627,767 322,918 26,698,728 2 a 84

310,484 27,479,533 37 a 31 854,000 976,235 28,196,666 37 a 34 614,146 1,156,154 28,114,148 4 a 44 759,247 734,512 28,875,992 3 a 3$ 741,109 510,774 29,826,959 2 a 24 679,075 685,236 30,436,644 15 a 24 677,058 477,335 30,773,050 2 a 13

640,968 32,023,390 14 a 14 490,368 779,564 32,841,862 17 a 1} 581,292 673,826 33,764,382 13 a

1,505,728 34,594,668 14 a 27 617,279 693,432 34,671,528 2 a 1} 635,546 1,151,300 35,297,944 14 a 19 410,804 712,276 35,175,828 29 a 34 484,019 1,574,166 32,239,868 37 a 31 604,682 1,093,031 80,280,697 3 a 31 604,682 938,032 30,672,760 31 a 38 224,911 881,452 31,397,284 34 a 35 558,035 1.647,299 31,284,882 36 a 45 352,391 1,990,327 31,162,048 40 a 63

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123,316
91,161

6,088
628,708
323,906
328,127
1,000

800 27,695

699,597 April 5... 996,445

12... 1,110,231 " 26...

844,677 May 2...

868,600

755,102 24... 1,913,355

31... 2,282,137 June 7... 1,618,876

880,000

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600

650 18,976

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Total.. 20,894,425 2,198,723 11,421,807 21,797,868

The price of gold, in paper, rose rapidly under the shipping demand, which became urgent about the middle of April, when the government issue of paper commenced. The rates of exchange followed the rise in gold, and was as follows:

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London.

Paris. Amsterdam. Frankfort. Hamburg. Berlin. Dec. 1, 109 a 1094 5.25 a 5.15 404 a 404 41 a 414 85% a 36 734 a 74 15, 1104 a 1104 5.15 a 5.10 41° a 414 414 a 42 364 a 37

74 a 745 Jan. 1, 1104 a 113 5.124 a 5.05 42 a 421 431 a 43 374 a 38 741 a 75

15, 1131 a 114 5 06 a 4.90 421 a 434 434 a 434 377 a 384 754 a 767 Feb. 1, 113 a 1134 5.10 a 4 95 42+ a 434 435 a 43$ 37 a 387 754 a 76

15, 116 a 115$ 4 974 a 4.90 424 a 434 434 a 44 37$ a 38764 a 77 Mar. 1, 112 a 113 5.05 a 6.00 424 a 43 424 a 43 37 a 374 757 a 754

16, 1121 a 1127 5 074 a 5.034 42+ a 43 421 a 434 364 a 374 744 a 75 22, 111 a 112+ 5.084 a 5.004 42 a 421 424 a 42 363 a 377 74 a 741

29, 111 & 119 6.10 a 6.05 42 a 42 421 a 42 365 a 37} 74 a 743 Apr. 5, 1114 a 1124 6.074 a 5.02 427 a 4: 4 424 a 4.4 365 a 37 741 a 75

12, 1114 a 112 6.10 a 5.034 42 a 421 424 a 4?$ 864 a 373 741 a 714 19, · 1118 a 1127 6.10 a 5.034 414 a 427 42+ a 424 365 a 877 74 & 741

26, 1111 a 112° 5.024 a 5.074 427 a 424 42 a 4 24 364 a 374 747 a 744 May 2, 11?} a 1185 4 974 a 5.02 42+ a 424 425 a 47$ 37 a 374 744 a 745

10, 113 a 114 4.914 a 5.024 427 a 43 424 a 437 37% a 37} 75 a 754 17, 113 & 114 4.963 a 5.00 4?fa 43 4} a 437 378 a 38

75 a 75g 24, 114} a 115 4.921 a 5.00 42% a 43 43

a 437 374 a 38 757 a 75+ 81, 114 a 1144 4 951 a 4.917 425 a 434 437 a 431 373 a 387 754 a 76 June 7, 114 a 116 4 95 & 4.91 43 a 437 437 a 43$ 37} a 381 759 a 76 14, 1177 a 118 4 75 a 4.82 434 a 444 444 a 46

39

a 394 764 a 771 26, 1204 a 121 4.70 a 4.66 415 a 45

45 a 451 40 a 40$ 78 a 784 The government paper money being ready for delivery in the fore part of April, it was paid out freely from the Assistant Treasury in New York, and its effects are manifest in the following table, showing the weekly payments, the deposits, and specie in the banks, the export and premium on specie, the price of United States 6 per cent stock, the premium on the old paper money, or that which is receivable for customs :

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Prem, Price Prem. Bank

Specie on stocks old Payments. deposits. Specie. exports. specie. 6 p. c. notes 4, 43,831 93,769,063 34,694,668 1,505,728 1$ 931 par. 12,531,675 95,179,340 34,671,528 693,432 14 911 24,723,223 101,897,435 85,297,944 1,151,300 11 96 22,747,942 109,634,535 85,175,828 712,275 24 99 17.187,322 115,559,246 32,239 868 1,574,166 21 102

9,835,787 120,003,929 30,280,697 1,093,031 34 105 10,445,000 122,602.864 30,672,760 938,032 8f 1033 6,888,052 125,434,751 34,397,284 881,452 3$ 1044 6,570,880 125,666,961 31,284,882 1,617.299 41 1063 9,832,791 125,613,375 31,162,084 2,040,327 63 1075 8,486,213 126,654,422 31,047,945 3,150,988 7 106 3

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As the paper money flowed out of the Treasury, it swelled the deposits in the banks, and sought investments as a matter of necessity in government paper, deposits, 5 per cent certificates, one year 6 per cent certificates, three year 7.30 bonds, and, to a small extent, in twenty years 6 per cent bonds.

The price of which rose 14 per cent in paper, while gold rose 5 per cent. The different descriptions of government paper were affected as follows: VOL. XLVII.-NO. I.

3

PRICES UNITED STATES PAPER.

60

874

3

106

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August --6's, 1861.--

7 8-10, 6p. c. certif. demand Reg. Coup. 5's, 1874 3 years 1 year.

Gold. notes February 5,...... 88

89 784
19,

90
90
79

99 March 1,...,

93

924 854 994
19,

93
93
86

100
19,

94
94 88
100

1}
26,...
947 944

100 97 it
April
1,......

93
98
87

994 964 23
7,...... 93 937 87

100 97 14 30,

973 987 894 1021 997 2 par. May 10, 103) 103

104 991 24
17,
105 105 96

105 100+
23,
1044 1044 96

105 100} 81
31,

1041
1044
96

105 100 84 June 7,.....

103
96 1061

100%

43 1 14,,.... 103} 1073 974 1067 1004 67 8 26,

1023 1067 964 105f 997 9 43 The June quotation for the registered stock are ex-interest. The paper flood floated up these securities to par nearly, for gold, but in doing so attracted stocks from Europe. The interest on the stocks is payable in gold, and consequently the Treasury must buy gold, since the $60,000,000 of old paper money out is held to pay duties, the only revenue of the government. The Secretary, therefore, changed the 7.30 bonds for gold at par with the banks, to the extent of $6,000,000, which served to pay the July and August interest, most of which is due to the banks. The Secretary also exchanged $2,500,000 7.30 bonds for old paper money, at 3 per cent premium, when the market price was 6 per cent premium for the bonds, and 1 per cent premium for the notes, an operation which left a large profit to the banks. It was justified on the plea, 1st, that the Secretary wanted money, and 2d, that it was requisite to get the old notes out of the way as fast as possible, in order to get gold for customs; but as there are $56,000,000 of these notes outstanding, the getting in $3,000,000 would not belp the Treasury. Again, if the notes were got into use

as money, they would be paid out again, an operation which the law forbids. Again, if money was the object, the 3-year bonds would have brought 6 per cent in new notes, instead of 3 per cent in old notes, which are no more money than new notes. The operation was private and was inexplicable.

The flood of money from the Treasury, which so filled the bank vaults, inflated stock prices, and swelled the Treasury deposits, also caused a fall in rates, which were as follows:

Endorsed. 60 days.

Other good. known. October 1,....

6 a 7 61 87

a 12

12 & 16 24 & 86 Feb. 1,.... 6 & 7 na

64 a 7

B & 7 8 & 12 April b,.... 6 & 6 7 a

8 & 9
26,....

7 &.
a 7

7
May %,
7 a 6 & 7

7 a
10,.... 4 & 5 7 a.

7
4 & 5 7 A. 6 a 6 7 &
24,....
4 a 6

4 & 5

& 7 6
31,....
4 a 6 6 a. 4 & 5

& 7 6 A7
June 7,.... 4 & 5 6 a 4 a 5
14,.... 3 & 5

4 a 5

6 A 7

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On call. Stocks. Other. 6 a 7

4 a 6 mos.
8

6 6

& 7

6

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The demand for money was very small, but little new business paper is made, the offerings for discount were very limited, and money was at 3 per cent on call. On the 1st of July many States paid their interest in gold. These payments, with those of the Federal government, were estimated at $7,000,000, a considerable portion of the gold remaining with the banks that held the stocks. The State of New York negotiated a loan for $800,000 6 per cent, redeemable, 1878, payable in gold. The amount of money offered was $5,400,000, and was awarded at a premium of 110.791, equal to 117 currency, or more than 10 per cent higber than federal stocks, which are not subject to taxation. When Federal stocks are so low, the transaction is a significant one.

There has been no material change during the month in financial affairs, although there has been considerable progress in the development of those effects of paper money which we pointed out in our last, as apparent in the market. The symptoms of paper inflation have manifested themselves mostly in the rise of stocks, gold, and exchange. Yet these unmistakable evidences of approaching danger, bave been, by a portion of the community, regarded as signs of prosperity, and by others not bold enough to deny their evil import, as the results of speculation. It is remarkable bow exactly arguments and assertions reproduce themselves with the recurrence of the same circumstances. When the irredeemable paper money of the revolutionary French Government began to depreciate, the apparent rise in prices was charged upon speculators, forestallers, monopolisers, and the government resorted to laws making it criminal to charge a premium for gold; maximum laws fixing the prices for all necessaries of life; laws to punish contumacy in refusing to sell at legal prices, and manifold devices, the only result of which was to crush out producsion and accelerate ruin. After a lapse of seventy years, the same effects from the same causes are again charged upon speculators. The results cannot, however, be changed. In embracing the paper money policy, in order to avoid direct taxation, the government has invited national ruin to shield politicians from present responsibility. This process must be continued, for the reason that the accumulated capital of the country, which seeks permanent investment, is rapidly decreasing, and pot a dollar bas been obtained by the government from that source in the last six months. We may look back at events. The Secretary, in bis annual report, states that the debt of the government bad been, July 1, 1861, $90,867,828, and December 1 it was $267,540,035, an increase of *176,672,107. Oi this amount there had been subscribed by the banks $50,000,000 in 7.30 notes, and $50,000,000 in 6 per cent 20 years' stocks, making $100,000,000 held by the banks ; also, $50,000,000 had been taken by the public in 7.30 notes, and $24,550,325 had been put out as currency. May 29, the Secretary made another report, and the funded debt had risen to $491,448,984, an increase of $233,008,949. Of this increase noue whatever had been subscribed. It was composed as follows:

7.30 notes paid out..... Paper money paid out... Deposits at 10 days notice 1 year certificates paid out Oregon war debt.....

$20,523,460 5.20 bonds funded notes... 2,699,400
121.329,675
50,778,566

$243,100,641 47,149,000 Less treas'y potes red'med 19,191,692 670,650

Net increase of debt..... $223,908,949

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