sales of imported goods being limited, and but very little call for money for business purposes existing, the banks found themselves with a large proportion of their capitals idle in their vaults. Their decreased dividends attested the fact that less of their means was profitably employed than usual. We will here insert the following table in order to show, from official returns, the comparative customs received during the six months from January to July, in two years :

RECEIPTS AND EXPENDITURES OF THE UNITED STATES, FROM JANUARY TO JULY, IN THE YEARS 1841 AND 1842.

After the expiration of the six months here embraced for 1841, duties of twenty per cent were laid upon articles theretofore free, and were estimated to yield $5,000,000 per annum, or about equal to the reduction of duties, under the compromise act, since January of the present year; consequently, the aggregate importations have been larger this year than last, but have been mostly on foreign account, and are in store. tances have not therefore been required on their account.

Remit.

A change has now been wrought in the state of affairs. The commercial balance due by the interior to the Atlantic cities has been partially settled. The currency of the interior has at the same time been reduced from the fictitious level of suspended bank paper to the solid basis of specie. Prices have consequently undergone the same operation, and are reduced to very low rates; so low that they will command the markets of the world; and therefore the exports may be expected to be very large. At the same time a thorough change seems to have been undergone in the machinery by which these crops are to be put in motion. Hitherto it has been through the operation of suspended bank credits. That state of things has now ceased to exist. In all sections, the suspended banks have resumed or are going into liquidation. Illinois and Alabama are the only states where suspended paper is now tolerated; and there the state of public opinion is such that liquidation or suspension will speedily be brought about. The prevalence of a specie currency throws down those artificial barriers, which, by the operations of bank credits, were formerly interposed to prevent the natural operation of supply and demand in regulating the prices of commodities. But a few years since, it was sup. posed that, no matter how great a quantity of cotton was raised, high prices could be compelled for it abroad by a combination of paper credits with a view to hold. For such a purpose the famous Macon Convention was held, but of course utterly failed in its objects. The vast capital of the United States Bank governed the cotton market for a short time, and sustained prices for a season, only to make them sink lower in the end.

The same means were used to attain the same objects in other produce, particularly flour, which in the spring of 1839, was held in the New York market at $9 00, when English orders were here limited to $6 50 or $7 00. The flour was held by bank influence until those orders were supplied from other quarters, and then the price sunk to $5 00, involving heavy losses. The following is a monthly list of prices in the port of New York for several years:

The low rates to which flour fell in 1840 caused a greater export than ever before. That surplus going off, the home market raised prices of the balance through 1841 at least $150 per barrel higher than they would have been, had that surplus been retained on the market. The product of wheat in that year, according to the best estimates, was 90,000,000 bushels, equal to 18,000,000 barrels of flour. This was worth, at the average rate of 1840, $85,500,000. The export of $10,000,000 in that year raised the prices of the succeeding crop $1 50 per barrel at home; consequently benefiting the farmers and millers by the enormous sum of $27,000,000. The product of the present year is admitted on all hands to be immensely greater than ever before, and prices are expected to fall to a level lower than that of 1840, and, without a foreign market, must be still further depressed.

The recent news from abroad, in relation to the crops, was, as usual at this season of the year, contradictory in its character. Much depends upon the weather up to the 1st of October. It seemed to be admitted, however, that if nothing untoward happened, the release of the grain already in bond would supply all the deficiency of the harvest. Should such be the case, it must be remembered that the repeated short crops of Great Britain have exhausted the granaries of Europe to a degree that will place the West Indies, South America, and other markets, entirely at the command of the United States. The prospect of a speedy increase of manufacturing prosperity in Great Britain was not very promising, but notwithstanding the great complaints of dull trade in all quarters, the purchases of cotton by the spinners were very nearly equal to those of last year, and equal to former years; but that demand may not be sufficient to sustain prices in the face of the crop about coming forward. From all these facts it seems highly probable that the abundant crops of the Union will, assisted by the moderated tariff of Great Britain, find good sales abroad; and that a larger surplus than ever of American produce will be exchanged for the proceeds of foreign industry, thereby increasing the wealth of the country, and raising the value of the currency retained in the home mar. ket. The growers of produce, being better remunerated, will increase their purchases of manufactured goods, and all classes feel the influence of that general prosperity which seems now about to rise above the ruins of the banking system, based upon the broad foundation of industry and frugality, instead of extravagance and credit. The following

is a table of the leading articles of domestic produce, exported from the United States, in six years, from official documents :

PRINCIPAL ARTICLES OF DOMESTIC PRODUCE EXPORTED FROM THE UNITED STATES, IN SIX YEARS. 1838.

1837.

1839. 61,238,982

1840. 63,870,307

1841. 54,330,341

9,832,943 9,883,957 12,576,703

Rice,.

2,309,279

1,721,819

2,460,198

1,942,076 2,010,107

This table gives the fact that as the currency becomes appreciated every article of domestic produce exported increases in value. The same facts may be gathered from the following table, from official sources, showing the imports and exports of the United States in 1841, as compared with previous years :--

AGGREGATE IMPORTS AND EXPORTS OF THE UNITED STATES, FOR FIVE YEARS.

The following table gives the comparative imports and exports of each state, for each

of the last three years :

IMPORTS AND EXPORTS OF EACH STATE AND TERRITORY, FOR THE LAST THREE YEARS.

Vermont,

New Hampsh. 41,407

Rhode Island, 612,057

81,944

114,647

413,513

Massachusetts, 19,385,223

20.979 305,150 10,186,261

New York,.. 99,882,438

277.987

11,487,343

278,465 599.348

33,139.838

New Jersey,

4,182

Pennsylvania,. 15,050,715

19,166 5,152,501

802

4,901,746

37,001 5,768,768

3,276

6,101,313

38,585 4,947,166

Dis. Columbia,

132,581

769,331 5,630,286

383,056

Sou. Carolina, 3,036,077

10,385,426

2,058,870

10,036,769

1,557,431

8,043,284

3,696,513

Alabama,

33,181,167

Michigan,.

Florida,.

Missouri,

46,964

10,600

145,181

36,629

TOTAL, $162,092,132 $121,028,416 $107,141,243 $132,085,946 $127,946,177 $121,851,808

The falling off in the aggregate exports for the year 1841 was altogether in cotton and flour-mostly in the former article, the quantity of which that was raised, less in 1841 than in 1840, was 600,000 bales. The export of other articles mostly increased. Hence the decline was more apparent in the southern than in the northern states. The im ports show the most remarkable fluctuations, and seem to obey the influence of paper credits in a marked degree. Into Massachusetts it appears the imports in 1841 were greater than ever before, being twenty-five per cent higher than in 1840, and six per cent higher than the year of great importations, 1839, when the imports into New York reached very near $100,000,000. In 1840, the New York imports fell off $40,000,000, and in 1841 but partially recovered; while Massachusetts more than recovered itself. In the year 1839 the imports and exports of Massachusetts amounted to twenty-three per cent of those of New York. In 1841 they reached thirty per cent of the amount. Taking the principal places of import, we shall find that they bear the following proportions in each year to the whole amount of imports:

TABLE SHOWING THE PROPORTION PER CENT OF THE IMPORTS INTO EACH OF THE FOLLOW. ING STATES, FOR A SERIES OF YEARS.

This table gives the fact that in years of speculation, like 1836 and 1839, New York does the greatest proportion of the foreign business; while in years of steady prosperity, like 1837, '40, and '41, the proportion transacted by Massachusetts improves. The business of Massachusetts in 1841, as compared with 1836, gives an improvement of two per cent of the whole amount; while New York shows a decline of 3.7 per cent. Pennsylvania shows a small improvement; but the business in 1841 was less than the average of the four previous years. Louisiana shows a decline. From these general facts, it may be concluded that the nature of the paper money system is to concentrate trade in New York or the great centre of credit, while a cash business diffuses the trade over the whole country, and promotes "direct" trade, corresponding to the increased exports of produce, which swell under low prices and a steady currency.

Although the indications of trade are favorable, as here pointed out, yet we cannot perceive any signs of improvement in public credit, or of stock securities generally. On the contrary, repudiation, with its attendant tide of dishonor, seems rolling on and threatening to surround and overwhelm not only all those states and institutions which have heretofore been considered sound, but to carry down the federal government in its course. The great state of Pennsylvania has passed into the list of voluntarily. insolvent states. With a debt of $40,000,000, bearing a yearly interest of nearly $2,000,000, and public works valued at $36,000,000, she has dishonored her liabilities, principal and interest, at home and abroad. No effort is made to retrieve her affairs, and she floats a helpless wreck on the ocean of discredit. Nor is she alone. The state of Ohio, with a debt of about $15,000,000, and ample resources, is going rapidly to decay. In April last, owing to her discreditable connection with her suspended banks during the past year, her six per cent stock had fallen to fifty cents on the dollar. It was then thought that some arrangements would be made by taxation to pay off ar. rearages, complete her public works, and provide for the interest on her debt. Under

this impression, her stock gradually rose to eighty per cent; when at the present session of the state legislature a bill passed the lower house to borrow money at ten per cent to pay her debts, confidence gave way, and the stock fell rapidly. These two states, Ohio and Pennsylvania, having heretofore stood very high, their dereliction has a very unpropitious effect on the already shattered state of American credit, at home and abroad.

The finances of the federal government are in scarcely a better condition. The Secretary of the Treasury has found it impossible to obtain more than the $1,500,000 of the loan mentioned by us in a former number, but has thought proper to despatch an agent to Europe to attempt the negotiation of the remainder, notwithstanding the low state of American credit, and the exasperation of the creditors of the delinquent states. There is very little chance of the mission meeting with any success, and ill success will not add to the dignity or credit of the United States. The actual debt of the federal government is now as follows:

This is an increase of $25,000,000 in the national debt during the sixteen months which have elapsed since March 1, 1841, of which $14,000,000 have been actually spent, and large arrearages are now outstanding. According to the late veto message of the chief magistrate, a deficit of $440,000 exists in the shape of protested navy bills. The regular revenues are far short of the current expenditures, with little or no hope of realizing funds from any means of borrowing. The future is therefore full of gloom; actual dishonor threatens the government on one hand, and a recourse to direct taxation on the other.

The advices by the late packet from Europe state that there is no hope that the gov ernment agent will be able to obtain any money for the loan. The defalcation of Pennsylvania has given a severe blow to the remaining confidence in the will of the American people to pay. The state of commercial affairs was, however, much improved; low prices and a cheap rate of money were bringing about a renewed state of activity in trade generally. The prospect of a fair harvest had given an immediate start to business. It however had caused a fall, in the short space of two weeks, of 12s. per quarter in wheat-equal to about sixteen per cent. This fact had encouraged the manufacturers, because it is well known that the home trade is always most prosperous when, through the cheapness of bread, the power of the massess to purchase goods is increased. This had produced an improved demand for cotton, with good prospect of a remunerating trade.