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people. The conditions of treaties remain unfulfilled in many respects, and ports that ere this should have been thrown open remain closed, without any definite purpose on the part of government to remove the restrictions. Exchange, though somewhat modified, is still maintained at an arbitrary rate, by which the authorities obtain a large revenue, to the detriment of the mercantile community. These and numerous lesser annoyances have proved a heavy clog upon business ; nevertheless, there has been, on the whole, a considerable increase of trade with the United States, and a large exportation of raw silk to Great Britain.

The fancy lacquered wares and other Japanese goods that were briefly noticed in our last issue have been imported only to a small extent; yet in some articles our market is overstocked, causing considerable loss to the importer when sold, but for the most part remaining on hand, with but little prospect of sale at remunerative prices.

The present state of affairs in Japan is anything but assuring. News just received from Kanagawa to the 11th May, via San Francisco, represents a considerable daval force, British and French, lying off that port, waiting the decision of government to a demand of indemnity made by the English Admiral in consequence of the murder of a British subject by some Japanese. Should the answer be unsatisfactory, it is alleged that hostilities will forth with commence. How far American property will be jeopardized in these circumstances cannot now be determined, and in the face of rapidly moving events, speculation becomes useless. Meanwhile we learn that the American minister bad negotiated a new treaty, by wliich some advantageous conditions had been secured; but as yet we are without particulars.

On the subject of communication between the United States and China, the only new feature we have to announce is the attempted establishment of a line of steamers between that country and San Francisco. Hitherto the enterprise has not met with much success, the public expectation having been disappointed with regard to the rapidity of passage ; and the few and irregular voyages of the steamers would imply that the business has not turned out remunerative. The occasional arrival of a sailing vessel from Hong Kong, Shanghae and Kanagawa, at San Francisco, has put us in possession of late news from those points ; but, on the whole, there has been no gain of time over the route via England, the average transit of the mails from Hong Kong to New York being, for 1862, just sixty days.

Lately a French company bas started a line of steamers between Marseilles and Hong Kong, under the title of Messageries Imperials. The ships are first-class, and their performances hitherto betoken a close competition with the old line.




The business of the past month showed little recovery from the lassitude that has so long prevailed in the markets. The quantity of manufactured and imported goods upon the market has not been large, and the general tendency is to higher prices, by reason of the diminished supply of raw material. The materials which are generally used for textile fabrics are flax, wool, and cotton. The two last mentioned are those which employ the manufacturers of this country, and in the following proportion according to the census :

No. hands.

Pounds used. Value of goods. Cotton.

118,920 380,036,123 $115,137,926 Wool.

48,900 80,386,572 68,865,963 These materials, in the proportion of one-sixth wool and five-sixth cotton, have been the basis of the goods made in this country, and for two years the larger material has been withheld, or 760,000,000 pounds of cotton, equal to 3,040,000,000 yards of cloth, or 100 yards for every person, has been withbeld from the markets, consequently wool is almost the sole material. It has greatly risen in price, and the goods have, as a matter of course, cost more. The same thing has bappened in Europe and England. Flax, silk, and wool have been called upon to perform greater duties, and have all risen relatively in price. As a consequence goods come out dearer, while old stocks are becoming loss. The crop of domestic wool never suffices for the home manufacture ; it is about threefourths the required quantity in ordinary years. A large import demand now comes in competition with the wants of other nation upon the wool supplying countries Under these circumstances there is great firmness among holders of goods, while the demand from consumers is becoming more urgent, because of the long season of economy. It is probably the case that through the rise in gold and exchanges, by raising prices and thus discouraging consumption, the nation has saved several hundred millions of dollars. In other words, they have consumed so much less than they would have done bad the usual course of prosperity been uninterrupted. This saving has been in some degree an offset to the lessened production and the waste of war; the same quantities of merchandise have been made to last a longer time. Such a state of affairs, bowever, brings ultimately a state of quasi exhaustion, which manifests itself in what are called war prices. Unfortunately, however, for the farming interests this does not apply to food, of which the abundant surplus seeks the seaboard vainly for an adequate foreign market, and falls daily in prices, which are lower than they have been for many years previously.

The use of machinery in the harvesting of crops now compensates largely for the absence of men in the service of the army. This is an extraordinary feature of the present war. Early in the century when the male population were taken from useful industry into the armies, the labor of the fields had to be done by the females as an alternative for starvation. At the present time so perfect is machinery that men seem to be of less necessity. Of all the labors of the field, mowing was formerly deemed to be the most arduous, and the strongest men were required for it. We have seen, within the past few weeks, a stout matron, whose sons are in the army, with ber team cutting hay at seventy-five cents per acre, and she cut seven acres with ease in a day, riding leisurely upon her cutter. This circumstance is indicative of the great revolution which machinery is making in production. War occupations, even on a most gigantic scale, do not seem to check the supply of food. That food is not produced, however, in much greater ratio per acre, while its value, compared with what the farmer is required to purchase-necessary groceries and clothing-require a far greater number of bushels of grain than formerly, and interchange is not readily effected.

The uncertainty of the duration of the present state of affairs also prevents all business enterprise, and the state of the currency confines transactions mostly to cash. It results, from this state of things, that money becomes more and more abundant up to a certain point, since, as goorls are sold for cash during a'time of diminishing stocks, the cash for which the wares are sold seeks deposit and temporary employment, and money becomes apparently very abundant. There is a limit to the downward movement, bowever, and when the time comes for dealers to get in stock and commercial enterprises to be resumed, business may absorb money faster than it now releases it.

The large deposits in the banks, as apparent in the tables elsewhere, show the great accumulation of money. The process of inflation which is going on throughout the country banks also aids the accumulation. The country bank notes are payable in greenbacks, and as payment is not demanded these institutions send the greenbacks they receive in the course of business to New York to draw interest, if they can get it, and pay out their own notes. There is no settlement, but a fabric of credits growing up, one upon another, and balances are sent to the city for employment. This fund has found employment only in conversion to a moderate extent into the government five-twenty six per cent stock, in the five per cent certificates of deposit, and stock speculations.

The prices of the federal stocks have been as follows:

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115,... 22,...



August -6's, 1881.5 7 3-10, 1 year certir.

demand Reg. Coup. 5's, 1874. 3 years.

old. New. Gold. notes April 4,... 1041 106 977 1045 99

63 & 531
11,... 1044
105 971 105 100}

46 8 52}
18,... 104

96 105 101

63 a 531
25,... 106 105 96 106 102

1517 a 1611 2,... 1051 1061 974 1061 102

160 a 1504
9,... 106 107 97 106 1013

1527 a 1524
108 978

107 1014 99% 149 a 1494
23,... 108}
1087 974 1073

1011 994 1488 a 149
30,... 108 108

97} 107 1014 991 1444 a 1444 June 6,... 104 1082 99 107 1014 977 146 a 146} 13,... 1044 1084 99 106


98 148 a 1487 20,... 1034 1081 984

106 101

98% 1427 a 1434 27,... 102 1071 98 104 1001 97 1461 a 1464 July 11,...

1041 105 977 106 100% 984 1827 a 132} 18,.. 1044

106 98 1067 101 99 125 a 1254 25,... 1057 1067 97 1064 1007 983 126 a 1261 August 1,... 1043

961 1061 101


1284 a 127
8,... 1054 1061

961 1065 101 997 1261 a 127

125 a 1254
1073 97 107


991 1241 a 128 The inflation in stocks generally has been very great, as manifest in the value of the leading stocks dealt in in the New York market:

1862. 1863.

Capital. American Gold.....

1154 126 U.S. Sixes, 1881, Coupon...

988 1064 $69,547,800 Fives, 1874,

854 97 27,022,000 7 3-10 Treasury notes...

1025 1064 139,920,500 6 Debt Certificates (old)..

98 101;

157,280,000 (new).

25,000,000 4 Sixes, 5-20...

100 225,000,000 Virginia Sixes.

537 611 30,889,000 Missouri Sixes.


71 37,000,000 Tennessee Sixes.

50% 664

12,193,000 California Sevens..

95 117

3,885,000 New York Central R. R.

897 130 24,000,000 Erie Railroad......


11,000,000 preferred.

624 110

8,535,700 Hudson River R. R....

444 1504 8,758,466 Philadelphia and Reading R. R.... 56 120 10,859,000 New York and Harlem R. R...... 145 168

5,717,000 preferred 357 151

1,500,000 Panama Railroad.....

134 190

5,000,000 Michigan Central..

594 120

7,899,489 Michigan S. & N. Ind. R. R..


6,857,707 guaranteed 557 136

2,983,000 Illinois Central R. R. scrip...

577 125 15,277,500 Cleveland and Pittsburg R. R..


3,832,712 Cleveland and Toledo R. R..


3,343,800 Galena and Chicago R. R..


6,028,400 Chicago and Rock Island R. R. .... 63 114

5,603,000 Chicago, Burling. and Quincy R.R. 781 125

4,791,510 Pacific Mail Steamship..

111 236

4,000,000 Delaware and Hudson Canal..

97 160 3,500,000 Pennsylvania Coal ..

964 140






The capital of the railroad stocks named was worth, at the market value of last year, $70,053,398, and has now risen to $181,791,204—a rise of $111,000,000 based entirely upon paper inflation, or loans of money for temporary employment upon those stocks as securities. The rapid advance in. these stocks carried most of them to points very much higber than the rates at which they sold in London. Some of them gave large margins to import, and many came to New York. The tendency of money in that direction in July was, as we have said, partly caused by the dullness of business, which at this port was as follows:



Entered torSpecie. Free goods. Consumption. Warehouse. Total. $101,906 $2,413,649 $8,741,227 $4,482,794 $16,739,676 213,971 783,561 7,872,539 3,667,775 12,037,846 123,616 1,328,806 11,461,672 3,454,530 16,370,524 107,061 1,828,216 9,493,830 6,456,208 17,385,315 197,217 710,021 7,980,281 6,437,404 14,324,923 109,997 780,963 6,328,581 6,877,885 12,597,426 182,245 683,880 9,080,210 4,227,265 14,173,600

Total 7 months $1,036,013 $8,029,186 $60,458,940 $33,822,196 $105,179,581

1862.... 731,556 16,041,959 60,445,034 30,154,241 107,872,790

The quantity of goods put on the market was much less than for the corresponding month last year, and the duties were considerably less, being $4,912,718, an average of thirty per cent, against $7,211,817, or thirty-six per cent, last year. The action of the high tariff is becoming more onerous upon imports in proportion as the prices of produce, which form the means of consumers to buy, decline. The payinents of duties are now mostly in gold, and the Journal of Commerce has presented the following table of the payments made since the old demand notes were nearly out of the market: Interest-bearing Old demand

Total Treasury notes.

duties. January...

$78,992 $4,047,714 $1,200 $4,127,906 February.

398,228 2,983,485 209,000 3,590,713 March .

287,724 1,149,206 3,117,530 4,554,460 April...

141,409 618,627 3,197,161 3,957,197 May.

220,645 534,220 3,119,000 3,873,865 June..

207,432 444,502 3,087,000 3,738,934 July..

222,191 411,527 4,279,000 4,912,718 Cents... 3


U. S. notes.


Total....... $1,556,624 $10,189,281 $17,009,891 $28,775,796

We bave omitted the cents for convenience, and added them at the foot. This shows a total of $1,556,624 interest-bearing Treasury notes, $10,189,281 old demand notes, and $17,009,891 in specie, received for duties at this port since the 1st of January,

These specie receipts enabled the Treasury to pay off some $12,000,000 that it borrowed of the banks in gold last winter, and of which the last installment was returned to them August 25th.

The exports from the port for the month of July were as follows:

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