COMMERCIAL CHRONICLE AND REVIEW.

THE OPENING TRADE-THE MONEY MARKET THE USURY LAWS-RESTRICTIONS UPON TRADE IKRATIONAL AND OPPRESSIVE-MARINE INSURANCE AS ILLUSTRATIVE OF THIS TRUTH-FREEDOM OF ACTION NECESSARY TO SELF-RELIANCE THE TARIFF-THE CANAL LOAN-BUSINESS AT THE ASSAY OFFICE AND UNITED STATES MINT-THE BANK MOVEMENT-DEBT OF CALIFORNIA-TRADE AND COMMERCE OF NEW YORK FOR 1856, WITH COMPREHENSIVE TABLES OF PRICES, ETC., ETC.

THE new year has opened with a fair prospect of business, but a moderate actual trade in most particulars. The stringency in the money market has been slightly relaxed, but there has been no return to low rates; nor, indeed, do we see any promise of such a return, throughout the current year. Our readers are aware that in some of the States the laws regulating the usance for money have been so far modified that it is not a crime to receive more than a certain fixed per centage; but there is still a relic of this barbarism left in many of the States, and much inconvenience is thereby experienced, although the law is everywhere openly and notoriously violated. It can be made plain to the dullest apprehension, that there is no more propriety in fixing the rate of interest by statute, than the price of oats; and yet the usury laws remain unrepealed. The show of argument by which the statute is maintained, is not the real ground of opposition to this reform. The friends of the law are found chiefly in the rural districts; and their fear is that if capitalists in the city are allowed to take openly the current market rate for money, there will be none offered in bond and mortgage, at the present nominal quotations. This is not said publicly, but it is the pith of all the bona fide objections to free-trade in money. Those who assume this ground, place themselves at once in a false position. If 7 per cent be the legal rate of interest, and money is worth more, and landowners are only enabled to borrow at this rate because the law forbids the lender to take a higher rate, then the law is certainly unjust and oppressive. If money is worth, on the average, no more than the legal rate, then the restriction is totally unnecessary. The landowner can offer the very highest security for borrowed capital; and for this reason he will always be enabled to borrow at the lowest market rate. If money is worth 10 per cent, and the law prescribes 7 per cent, then the landowner will not be able to borrow at all, and the restriction designed for his protection proves his curse. If all laws regulating the rate of interest were repealed, there can be no question but what the usance of money would be secured at some decline from the average current rates, as a bonus is now asked for the increased risk of subjecting a loan to the taint of usury. Perhaps one of the best tests of the soundness of these views, lies in the fact that in all the States where a reform has been tried, no voice has been raised in favor of a return to the old system.

The fact is, the world in every age has been, and still is, governed too much. There are too many restrictions upon trade, and too much fear of the salutary operation of natural laws. If a want of any kind be experienced, those who suffer rush at once to the fountain of authority, for power to create an arbitrary source of help, forgetful of the great truth that the demand is sure to produce the supply by a process which will be in perfect harmony with other interests. The evil effects of this interference with natural laws is daily experienced. An instance

is seen in the working of the system of marine insurance in the city of New York. There were several large companies in the field, who had grown rich in the business; this naturally drew in others, who were anxious to share the profits. Of course the new comers must offer some inducement to the customers of the old companies, to secure a profitable business. But some wise head thought that it would be a beautiful regulation that all the companies should be bound by a certain standard, and the exact rate of insurance on every article should be governed by a tariff, to which all should conform. Mark the result! The rates being the same in all the companies, the richer and more influential picked the cream of the business, and left the next choice to the second class, and so on down to the tail; and this rule was adhered to, until all who were low down upon the list failed, and some above them were sorely crippled. In connection with this very business, a project is now on foot equally absurd. The insurance companies have discovered that a large number of vessels are lost through carelessness, or ignorance, or want of nerve on the part of the commander. So they now propose a Board of Examiners, to pronounce upon the competency of shipmasters! Why not reach this difficulty in the simplest way? Is there less risk of loss under a good captain than a poor one? Very well-graduate the rates accordingly. Let skill and care, and all that makes up thorough seamanship, bring its price in lowering the rates of insurance; there will be no lack of the supply, the moment there is a demand for it at an equivalent compensation. The shipmaster under whom a ship shall insure at the lowest premium, will stand at the head of his class, without a certificate, and he whose vessel pays more than an average rate, will be dropped from the roll, without the blackball of the Board of Examiners. The same rule applies to the building, fitting, and manning of vessels. There should be no arbitrary classification, but each office should have its own inspector, and the rate of insurance should be nicely graduated to give an advantage to everything that goes to insure the safety of a voyage, and the delivery of a cargo in good order. This rule will apply to all classes of business and all human experience. No people will ever be self-reliant who are taught to depend upon the watch and care of government or of society. In some parts of Europe, dear bread will create a revolution; not because, as some superficial thinkers assert, that the masses are discontented and rebellious simply on account of an empty stomach, but because the people are not taught to see the effect of natural laws, and therefore look upon the affliction as something the government could have easily prevented, if so disposed. Some philanthropists are continually harping upon plans to protect the public; they would erect gates at the ferries, as high as Haman's gallows, lest the impatient passengers should fall overboard; and would have the police Argus-eyed in watching pedestrians through the thoroughfares, lest some one should do himself a mischief. In the cities of the Old World, where such care is taken, there are ten accidents to one in those places nearer home, where people are left to look out for themselves. Habits of watchful self-reliance can only be fostered where such restraints are unknown.

The tariff question still drags in Congress, but there is now some hope that a reform will be agreed upon before the close of the present session. It is time that the political aspect of this question should give place to sound practical economy.

The 6 per cent canal loan for $1,000,000, upon the credit of the State of New York, having seventeen years to run, was taken on the 15th of January, at $114 50 a $116 25, averaging $114 54. The bids amount to $4,545,000.

The following is a statement of the business at the United States Assay Office, at New York, during the month ending December 31:

DEPOSITS AT THE ASSAY OFFICE, NEW YORK, FOR THE MONTH OF DECEMBER,

Gold bars stamped.....

Transmitted to U. States Mint, Philadelphia, for coinage.....

800,000 00 2,296,513 30

117,647 60

The following is a statement of deposits and coinage at the Mint of the United States, in Philadelphia, during the month of December, 1856 :—

The bank movement at New York shows a continuation of the expansions in loans, without any permanent improvement in specie. It is evident that most of these institutions are anxious to make large dividends, and a little careless about maintaining a conservative position. Whoever lives twenty years longer will probably see a great change in the business of banking. The legal restrictions will be, to a great extent, removed, except in the matter of circulation, and a large part of the business will be transacted by private bankers. We give a full

report of the bank statements from the 1st of January, 1856, for convenient reference, but shall carry forward ouly the report from January 1, 1857 :

WEEKLY AVERAGES NEW YORK CITY BANKS.

Jan. 10... 55,235,068

90,709,710

Jan. 17... 55,235,068 110,860,401 11,955,154

We annex our usual comparative summary of the weekly statements of the

8,047,065

93,035,766

Boston banks :

WEEKLY AVERAGES AT BOSTON. December 23. December 30. January 5. January 12. January 19. $31,960,000 $31,960.000 $31,960,000 $31,960,000 $81,960,000 51,498,000 51,871,000 52,770,819 53,440,859 53,000,713 3,525,000 3,744,500 3.328.986 3.849.416 8,888,000 7,655,000 7,500,000 7,171,114 6,932.793 7.222.000 3,904,000 4,818.500 4.489.271 5,096.264 5,194.000 15.910,000 16,975,583 16,493,751 16,825,000 7,250,000 7,316,349 7,523,663 7,535,000

15,764,800

7,253,000

The following are the aggregate footings of the New Orleans banks on the last

The New Orleans bank statement for the week ending January 10, shows an extensive movement. Deposits have increased half a million, and exchange $300,000. The circulation has overtopped ten millions, which is larger than in any previous period since 1841. The specific changes, compared with the previous week, are as follows:

The following table shows the comparative condition of the banks in Portland, according to the returns made to the Secretary of State, January 3, 1857 :

$1,925,000 $3,619,982 $1,125,428 $621,350 $172,892

Compared with the returns for January 5, 1856, the above exhibits the fol

ASSETS OF ALL THE BANKS OF PENNSYLVANIA, NOVEMBER, 1856.