A government circular, enforcing the act of congress, which obliges all those who have to pay custom-house duties or postage to do so in specie, has created great dissatisfaction, and added much to the distress and difficulty. At the same time that they (the government) refuse to take from their debtors the notes of the banks, upon the ground that they are no longer legal tenders, they compel their creditors to take those very notes-having had a large quantity in their possession at the time that the banks suspended specie payments-an act of despotism which the English government would not venture upon.

Miss Martineau's work is before me. How dangerous it is to prophecy. Speaking of the merchants of New York, and their recovering after the heavy losses they sustained by the calamitous fire of 1835, she says, that although eighteen millions of property were destroyed, not one merchant failed; and she continues, "It seems now as if the commercial credit of New York could stand any shock short of an earthquake like that of Lisbon." That was the prophecy of 1836. Where is the commercial credit of New York now in 1837!!!!

At

The distress for change has produced a curious remedy. Every man is now his own banker. Go to the theatres and places of public amusement, and, instead of change, you receive an I.O. U. from the treasury. the hotels and oyster-cellars it is the same thing. Call for a glass of brandy and water and the change is fifteen tickets, each "good for one glass of brandy and water.' At an oyster shop, eat a plate of oysters, and you have in return seven tickets, good for one plate of oysters each. It is the same every where.-The barbers give you tickets, good for so many shaves; and were there beggars in the streets, I presume they would give you tickets in change, good for so much philanthropy. Dealers, in general, give out their own bank-notes, or as they are called here, shin-plasters, which are good for one dollar, and from that down to two and a-half cents, all of which are redeemable, and redeemable only upon a general return to cash payments.

Hence arises another variety of exchange in Wall street.

"Tom, do you want any oysters for lunch to-day?" "Yes!"

66

Then here's a ticket, and give me two shaves in return."

The most prominent causes of this convulsion have already been laid before the English public; but there is one-that of speculating in land—~ which has not been sufficiently dwelt upon, nor has the importance been given to it which it deserves; as, perhaps, next to the losses occasioned by the great fire, it led, more than any other species of over-speculation and over-trading, to the distress which has ensued. Not but that the event must have taken place in the natural course of things. Cash payments produce sure but small returns; but no commerce can be carried on by this means on any extended scale. Credit, as long as it is good, is so much extra capital, in itself nominal and non-existent, but producing real returns. If any one will look back upon the commercial history of these last fifty years, he will perceive that the system of credit is always attended with a periodical blow up; in England, perhaps, once in twenty years; in America, once in from seven to ten. This arises from their being no safety valve-no check which can be put to it by mutual consent of all parties. One house extends its credit, and for a time, its profits; another follows the example. The facility of credit induces those who obtain it to embark in other speculations, foreign to their business; for credit thus becomes extra capital which they do not know how to employ.

Such has been the case in the present instance: but this is no reason for the credit system not being continued. These occasional explosions act as warnings, and, for the time, people are more cautious: they stop for a while to repair damages, and recover from their consternation; and when they go ahead again, it is not quite so fast. The loss is severely felt, because people are not prepared to meet it; but if all the profits of the years of healthy credit were added up, and the balance-sheet struck between that and the loss at the explosion, the advantage gained by the credit system would still be found to be great. The advancement of America depends wholly upon it. It is by credit alone that she has made such rapid strides, and it is by credit alone that she can continue to flourish, at the same time that she enriches those who trade with her. In this latter crisis there was more blame to be attached to the English houses, who forced their credit upon the Americans, than to the Americans, who, having such unlimited credit, thought that they might advantageously speculate with the capital of others.

One of the most singular affections of the human mind is a proneness to excessive speculation; and it may here be noticed that the disease (for such it may be termed) is peculiarly English and American. Men, in their race for gain, appear, like horses that have run away, to have been blinded by the rapidity of their own motion. It almost amounts to an epidemic, and is infectious-the wise and the foolish being equally liable to the disease. We had ample evidence of this in the bubble-manias which took place in England in the years 1825 and 1826. A mania of this kind had infected the people of America for two or three years previous to the crash it was that of speculating in land; and to show the extent to which it had been carried on, we may take the following examples

The city of New York, which is built upon a narrow island about ten miles in length, at present covers about three miles of that distance, and has a population of three hundred thousand inhabitants. Building lots were marked out for the other seven miles; and, by calculation, these lots when built upon, would contain an additional population of one million and three quarters. They were first purchased at from one hundred to one hundred and fifty dollars each, but, as the epidemic_raged, they rose to upwards of two thousand dollars. At Brooklyn, on Long Island, opposite to New York, and about half a mile distant from it, lots were marked out to the extent of fourteen miles, which would contain an extra population of one million, and these were as eagerly speculated in.

At Staten Island, at the entrance into the Sound, an estate was purchased by some speculators for ten thousand dollars, was divided into lots and planned as a town to be called New Brighton; and had the whole of the lots been sold at the price which many were, previous to the crash, the original speculators would have realized three million of dollars. But the infatuation was not confined to the precincts of New York: every where it existed. Government lands, which could only be paid for in specie, were eagerly sought after; plans of new towns were puffed up; drawings made in which every street was laid down and named; churches, theatres, hospitals, rail-road communications, canals, steam-boats in the offing, all appeared on paper as if in actual existence, when, in fact, the very site was as yet a forest, with not a log hut within a mile of the pretended city. Lots in these visionary cities were eagerly purchased, increased daily in value, and afforded a fine harvest to those who took advantage of the credulity of others. One man would buy a lot with extensive water privileges, and, upon going to ex

amine it, would find those privileges rather too extensive, the whole lot being under water. Even after the crisis, there was a man still going about who made a good livelihood by setting up his plan of a city, the lots of which he sold by public auction, on condition of one dollar being paid down to secure the purchase if approved of. The mania had not yet subsided, and many paid down their dollar upon their purchase of a lot. This was all he required. He went to the next town, and sold the same lots over and over again.

To check this madness of speculation, was one reason why an act of congress was passed, obliging all purchasers of government lands to pay in specie. Nevertheless, government received nine or ten millions in specie after the bill passed. Now, when it is considered what a large portion of the capital drawn from England was applied to these wild speculations-sums which, when they were required, could not be realized, as, when the crisis occurred, property thus purchased immediately fell to about one-tenth of what was paid for it-it will be clearly seen that, from this unfortunate mania, a great portion of the present distress must have arisen.

The attempt of General Jackson and his successors, to introduce a specie currency into a country which exists upon credit, was an act of folly, and has ended in complete failure.* A few weeks after he had issued from the mint a large coinage of gold, there was hardly an eagle to be seen, and the metal might almost as well have remained in the mine from whence it had been extracted. It was still in the country, but had all been absorbed by the agriculturalists; and such will ever be the case in a widely extended agricultural country. The farmers, principally Dutch, live upon a portion of their produce and sell the rest. Formerly they were content with bank bills or Mexican dollars, which they laid by for a rainy day, and they remained locked up for years before they were required. When the gold was issued, it was eagerly collected by these people, as more convenient, and laid by, by the farmers' wives, in the foot of an old worsted stocking, where the major part of it will remain. And thus has the famous gold-currency bill been upset by the hoarding propensities of a parcel of old women. †

CHAPTER III.

FIFTY years ago, New York was little more than a village; now, it is a fine city with three hundred thousand inhabitants. I have never seen any city so admirably adapted for commerce. It is built upon a

*One single proof may be given of the ruinous policy of the Jackson administration in temporizing with the credit of the country. To check the export of bullion from our country, the Bank of England had but one remedy, that of rendering money scarce: they contracted their issues, and it became so. The consequence was, that the price of cotton fell forty dollars per bale. The crop of cotton amounted to 1,600,000 bales. which, at forty dollars per bale, was a loss to the southern planters of 64,000,000 dollars.

A curious proof of this system of hoarding, which immediately took place upon the banks stopping payment, was told me by a gentleman from Baltimore. He went into a store to purchase, as he often had done, a canvass shot-bag, and to his surprise was asked three times the former price for it. Upon his expostulating, the venders told him, that the demand for them by the farmers and other people who brought their produce to market, and who used them to put their specie in, was so great, that they could hardly supply them,

narrow island, between Long Island Sound and the Hudson river, Broadway running up it like the vertebræ of some huge animal, and the other streets diverging from it at right angles, like the ribs; each street running to the river, and presenting to the view a forest of masts.

There are some fine buildings in this city, but not many. Astor House, although of simple architecture, is, perhaps, the grandest mass; and next to that, is the City Hall, though in architecture very indiffe rent. In the large room of the latter are some interesting pictures and busts of the presidents, mayors of the city, and naval and military officers, who have received the thanks of congress and the freedom of the city. Some are very fair specimens of art: the most spirited is that of Commodore Perry, leaving his sinking vessel, in the combat on the Lakes, to hoist his flag on board of another ship. Decatur's portrait is also very fine. Pity that such a man should have been sacrificed in a foolish duel !

At the corner of many of the squares, or blocks of buildings, as they are termed here, is erected a very high mast, with a cap of liberty upon the top. The only idea we have of the cap of liberty is, the bonnet rouge of the French; but the Americans will not copy the French, although they will the English; so they have a cap of their own, which (begging their pardon), with its gaudy colours and gilding, looks more like a fool's cap than anything else.

New York is not equal to London, nor Broadway to Regent-street, although the Americans would compare them. Still, New York is very superior to most of our provincial towns, and to a man who can exist out of London, Broadway will do very well for a lounge-being wide, three miles long, and the upper part composed of very handsome houses; besides which, it may almost challenge Regent-street for pretty faces, except on Sundays. Many of the shops, or stores, as they are here called, (for in this land of equality nobody keeps a shop), have already been fitted up with large plate-glass fronts, similar to those in London, and but for the depression which has taken place, many more would have followed the example.

Among the few discrepancies observable between this city and London, are the undertakers' shops. In England they are all wooden windows below and scutcheons above; planks and shavings within-in fact, mere workshops. Here they are different: they have large glass fronts, like a millinery or cut-glass shop with us, and the shop runs back thirty or forty feet, its sides being filled with coffins standing on end, mahogany and French polished. Therein you may select as you please, from the seven feet to receive the well-grown adult, to the tiny receptacle of what Burns calls, "Wee unchristened babe." I have, however, never heard of any one choosing their own coffin; they generally leave it to their relatives to perform that office.

I may here remark, that the Americans are sensible enough not to throw away so much money in funerals as we do; still it appears strange to an Englishman to see the open hearse, containing the body, drawn by only one horse, while the carriages which follow are drawn by two: to be sure, the carriages generally contain six individuals, while the hearse is a sulky, and carries but one.

The New York tradesmen do all they can, as the English do, to attract the notice of the public by hand-bills, placards, advertisements,

* On Sundays the coloured population take possession of Broadway.

&c.; but in one point they have gone a-head of us. Placards, &c., may be read by those who look upward or straight-forward, or to the right or to the left; but there are some people who walk with their eyes to the ground, and consequently see nothing. The New Yorkers have provided for this contingency, by having large marble tablets, like horizontal tomb-stones, let into the flag pavements of the trottoir in front of their shops, on which is engraven in duplicate, turning both ways, their names and business; so, whether you walk up or down Broadway, if you cast your eyes downward so as not to see the placards above, you cannot help reading the inscriptions below.

Every traveller who has visited this city has spoken of the numerous fires which take place in it, and the constant running, scampering, hallooing, and trumpeting of the firemen with their engines; but I do not observe that any one has attempted to investigate the causes which produce, generally speaking, three or four fires in the twenty-four hours. New York has certainly great capabilities, and every chance of improvement as a city; for, about one house in twenty is burnt down every year, and is always rebuilt in a superior manner. But, as to the causes, I have, after minute inquiry, discovered as follows. These fires are occasioned

1st. By the notorious carelessness of black servants, and the custom of smoking cigars all the day long.

2d. By the knavery of men without capital, who insure to double and treble the value of their stock, and realize an honest penny by setting fire to their stores. (This is one reason why you can seldom recover from a fire-office without litigation.)

3d. From the hasty and unsubstantial way in which houses are built the rafters and beams often communicating with the flues of the chimneys.

up,

4th. Conflagrations of houses not insured, effected by agents employed by the fire insurance companies, as a punishment to some, and a warning to others, who have neglected to take out policies.

These were gravely stated to me as the causes of so many fires in New York. I cannot vouch for the truth of the last, although I feel bound to mention it. I happen to be lodged opposite to two fire-engine houses, so that I always know when there is a fire. Indeed, so does every body; for the church nearest to it tolls its bell, and this tolling is repeated by all the others; and as there are more than three hundred churches in New York, if a fire takes place no one can say that he is not aware of it.

The duty of firemen is admirably performed by the young men of the eity, who have privileges for a servitude of seven years; but they pay too dearly for their privileges, which are an exemption from militia and jury summons. Many of them are taken off by consumptions, fevers, and severe catarrhs, engendered by the severe trials to which they are exposed the sudden transitions from extreme heat to extreme cold in winter, being summoned up from a warm bed, when the thermometer is below zero-then exposed to the scorching flames-and afterward (as I have frequently seen them myself), with the water hanging in icicles upon their saturated clothes. To recruit themselves after their fatigue and exhaustion, they are compelled to drink, and thus it is no wonder that their constitutions are undermined. It is, nevertheless, a favourite service, as the young men have an opportunity of showing courage and