170,806,179-35

28,101,644-97 198,907,824-32

If to the above be added the amount deposited by the United States in the treasuries of the several states for safe keeping, .

It makes the aggregate debt of all the states, existing and authorised.

Summary of the Amount of Stock issued, and authorised to be issued, for Banking, Canals, Railroads, Turnpikes, and Miscellaneous Objects.

MAINE. The stock issued by this state is to be redeemed under the direction of the legislature, by the sale of public lands, from the debts due to the state, by taxes, or new loans, as may be deemed expedient from time to time. The amount of notes due from individuals to the state (August, 1838) is 326,721 dollars. The whole amount of located lands belonging to the states, 1,400,000 acres, valued at 1,500,000 dollars; the undivided lands belonging to Maine are estimated at 3,011,000 acres; making the total numbers of acres 4,411,000. This total includes half of the land north of the St. John's river in the king of Holland's award. The stock of this state is negotiable and transferable by the holder, and the interest in all cases is payable by the state. The interest on 235,000 dollars is payable at Boston annually, and the interest on the residue at the state treasury, annually and semi-annually; the stock bears interest at 5, 51, and 6 per cent. The value of the taxable property of the state in 1830 was 28,807,687-24 dollars.

NEW HAMPSHIRE has issued no stock. The expenses of government are defrayed by a direct tax. VERMONT.-This state has issued no stock.

this amount is returned by yearly instalments to meet the payment of the bonds by the bank. The state for its guarantee is considered as stockholder for 1,000,000 dollars, and, on the payment of the bonds, will divide accordingly with the stockholders. Dividends are only declared as the bonds are paid, and in the same proportion. The profits, until then, are retained as a sinking fund to meet the redemption of the bonds.

The Union Bank has bonds to the amount of 7,000,000 dollars, and is conducted on similar principles as the above. The original guarantee on mortgages of productive property is 8,000,000 dollars. The state for its guarantee is to receive one sixth of the nett proceeds.

The Citizens' Bank has received bonds to the amount of 8,000,000 dollars, and can demand 4,000,000 more; it is conducted on the same principles as above described. The guarantee is on 14,000,000 dollars of mortgages on real productive property. The state holds one sixth of the nett profits, which are only to be divided as the bonds are paid by the banks, and in the same proportion.

TENNESSEE.-The interest on the state bonds subscribed to the Union Bank were paid by the dividends on the stock, until the revulsion of 1837, after which the state paid the interest from the ordinary resources of the treasury. The interest on the bonds issued to railroad and turnpike companies is paid by the state, and the companies are required to reimburse the treasury for the sums from time to time paid.

KENTUCKY.-This state, in all cases, pays the interest on her own stocks. Auxiliary funds are set apart for the payment of the interest; but if these funds should prove insufficient, the state is bound to resort to direct taxes. In 1836, the legislature established a sinking fund for the payment of the debt; to which fund are appropriated bonuses and dividends on bank stock, premiums on scrip, state dividends in turnpike stock and all internal improvements, profits of the commonwealth's bank, proceeds of state stock in the old Bank of Kentucky, and the excess in the treasury over 10,000 dollars of each year. The governor, by an act passed in 1838, is authorised to borrow any sum not exceeding the capacity of the sinking fund, to pay the interest, and ultimately the principal, of the state bonds, at an interest not exceeding 6 per cent. per annum.

Taxation is confined to specific subjects. The aggregate value of such as are chargeable with revenue is 217,453,041 dollars, upon which a tax of 10 cents on the 100 dollars is paid.

OHIO.-The interest on the stock of this state is payable in New York, where the stock is transferable. Auxiliary funds are set apart for the payment of the interest, and, in case of a deficiency therein, it is made the duty of the auditor of state to levy an adequate amount by direct taxation. The loans were invariably made on pledges of specific revenues for the payment of both principal and interest. The state of Ohio, at the commencement of its loans, organised a system of finance on a firm foundation, providing by direct taxation for the payment of the interest and the ultimate redemption of the principal. In 1837, after the suspension of specie payments, Ohio paid the interest on its debt in New York city paper, at the rate of 109 dollars for each 100 dollars of interest.

Aggregate valuation of real and personal property, 110,000,000 dollars.

INDIANA. The canal lands granted to the state by the general government on the Wabash river, are pledged for the payment of the loans made on account of the Wabash canal. The interest on the bonds issued to the state bank is paid by the bank.

In 1837, after the suspension of specie payments, this state purchased coin to pay the interest on its debt; and for the July quarter paid 111 dollars in New York paper for each 100 dollars in coin. Aggregate valuation in 1837 estimated at 95,000,000 dollars.

ILLINOIS. The state in all cases pays the interest on the stock. In addition to the usual pledge of the faith of the state, lands, revenues, &c., there are specifically pledged for the redemption of the canal bonds, the lands granted by the general government to aid in constructing the canal; the estimate of which is equal to the whole cost of the canal. There is also pledged for the interest and final redemption of the bank bonds, the dividends and the stock owned by the state in the banks, which amounts to nearly half a million of dollars more than the amount of these bonds.

MICHIGAN. The proceeds of the public works, as well as the faith of the state, is pledged for 5,000,000 dollars--the lands set apart for the University is pledged for the loan for that object. The loans to railroads are secured by pledge of the roads, &c. The interest on 100,000 dollars issued to defray the expenses of the controversy with Ohio, is to be paid by a direct tax.

MISSOURI has issued bonds to the amount of 2,500,000 dollars to the state bank of Missouri.
ARKANSAS has issued 3,000,000 dollars of bonds to two banks in that state.

Statement showing the Amount of Stocks issued, and authorised by Law to be issued, by the several
States named below, in each Period of Five Years, from 1820 to 1835, and from 1835 to 1838.

Of this amount the sum of about 4 1-2 millions of dollars has been redeemed. ↑ Virginia has a war debt of 343, 139-17 dollars, contracted previous to 1820. South Carolina has a revolutionary debt of 193,770-12 dollars.

Some doubts having been entertained as to the right of individual states to contract loans, Messrs. Baring, Brothers and Co. addressed a letter on the subject to the distinguished American senator and lawyer, Mr. Webster, lately on a visit to this country. We subjoin his reply :

"London, Oct. 16, 1834. “Gentlemen,—I have received your letter, and lose no time in giving you my opinion on the question which you have submitted for my consideration. The assertions and suggestions to which you efer, as having appeared in some of the public prints, had not escaped my notice.

"Your first inquiry is, 'whether the legislature of one of the states has legal and constitutional power to contract loans at home and abroad?'

"To this I answer, that the legislature of a state has such power; and how any doubt could have arisen on this point, it is difficult for me to conceive. Every state is an independent, sovereign, political community, except in so far as certain powers, which it might otherwise have exercised, have been conferred on a general government, established under a written constitution, and exerting its authority over the people of all the states. This general government is a limited government. Its powers are specific and enumerated. All powers not conferred upon it still remain with the states and with the people. The state legislatures, on the other hand, possess all usual and ordinary powers of government, subject to any limitations which may be imposed by their own constitutions, and with the exception, as I have said, of the operation, on those powers, of the constitution of the United States. The powers conferred on the general government cannot, of course, be exercised by any individual state; nor can any state pass any law which is prohibited by the constitution of the United States. Thus no state can by itself make war, or conclude peace, nor enter into alliances or treaties with foreign nations. In these, and other important particulars, the powers which would have otherwise belonged to the state can now be exercised only by the general government, or government of the United States. Nor can a state pass a law which is prohibited by its own constitution. But there is no provision in the constitution of the United States, nor, so far as I know or have understood, in any state constitution, prohibiting the legislature of a state from contracting debts, or making loans, either at home or abroad. Every state has the power of levying and collecting taxes, direct and indirect, of all kinds, except that no state can impose duties on goods and merchandise imported,-that power belonging exclusively to congress by the constitution. That power of taxation is exercised by every state, habitually and constantly, according to its own discretion, and the exigencies of its government.

"This is the general theory of that mixed system of government which prevails in America. And as the constitution of the United States contains no prohibition or restraint on state legislatures in regard to making loans, and as no state constitution, so far as known to me, contains any such prohibition, it is clear that, in this respect, these legislatures are left in the full possession of this power, as an ordinary and usual power of government.

"I have seen a suggestion, that state loans must be regarded as unconstitutional and illegal, inasmuch as the constitution of the United States has declared that no state shall emit bills of credit. It is certain that the constitution of the United States does contain this salutary prohibition; but what is a bill of credit? It has no resemblance whatever to a bond, or other security given for the payment of money borrowed. The term bill of credit' is familiar in our political history, and its meaning well ascertained and settled, not only by that history, but by judicial interpretations and decisions from the highest source. For the purpose of this opinion, it may be sufficient to say, that bills of credit, the subject of the prohibition in the constitution of the United States, were essentially paper money. They were paper issues, intended for circulation, and for receipt into the treasury as cash, and were sometimes made a tender in payment of debts. To put an end at once, and for ever, to evils of this sort, and to dangers from this source, the constitution of the United States has declared, that no state shall emit bills of credit, nor make any thing but gold and silver a tender in payment of debts, nor pass any law which shall impair the obligation of contracts.' All this, however, proves, not that states cannot contract debts, but that, when contracted, they must pay them in coin, according to their stipulations. The several states possess the power of borrowing money for their own internal occasions of expenditure, as fully as congress possesses the power to borrow in behalf of the United States, for the purpose of raising armies, equipping navies, or performing any other of its constitutional duties. It may be added, that congress itself fully recognises this power in the states, as it has authorised the investment of large funds which it held in trust for very important purposes in certificates of state stocks.

"The security for state loans is the plighted faith of the state, as a political community. It rests on the same basis as other contracts with established governments-the same basis, for example, as loans made to the United States under the authority of congress; that is to say, the good faith of the government making the loan, and its ability to fulfil its engagements. These state loans, it is known, have been contracted principally for the purpose of making railroads and canals; and in some cases, although I know not how generally, the income or revenue expected to be derived from these works is directly and specifically pledged for the payment of the interest and the redemption of the debt, in addition to the obligation of public faith. In several states, other branches of revenue have been specifically pledged; and in others, very valuable tracts of land. It cannot be doubted that the general result of these works of internal improvement has been, and will be, to enhance the wealth and ability of the states.

"It has been said that the states cannot be sued on these bonds. But neither could the United States be sued, nor, as I suppose, the crown of England, in a like case. Nor would the power of suing, probably, give the creditor any substantial additional security. The solemn obligation of a government, arising on its own acknowledged bond, would not be enhanced by a judgment rendered on such bond. If it either could not, or would not, make provision for paying the bond, it is not probable that it could, or would, make provision for satisfying the judgment.

"The states cannot rid themselves of their obligations otherwise than by the honest payment of the debt. They can pass no law impairing the obligation of their own contracts,-they can make nothing a tender in discharge of such contracts but gold and silver. They possess all adequate power of providing for the case, by taxes and internal means of revenue. They cannot get round their duty, nor evade its force. Any failure to fulfil its undertakings would be an open violation of public faith, to be followed by the penalty of dishonour and disgrace, a penalty, it may be presumed, which no state of the American Union would be likely to incur.

"I hope I may be justified by existing circumstances to close this letter with the expression of an opinion of a more general nature. It is, that I believe the citizens of the United States, like all honest men, regard debts, whether public or private, and whether existing at home or abroad, to be of moral as well as legal obligation; and I trust I may appeal to their history, from the moment when those states took their rank among the nations of the earth to the present time, for proof that this belief is well founded; and if it were possible that any of the states should at any time so entirely lose her self-respect and forget her duty as to violate the faith solemnly pledged for her pecuniary engagements, 1 believe there is no country upon earth-not even that of the injured creditors-in which such a proceeding would meet with less countenance or indulgence than it would receive from the great mass of the American people. "I have the honour to be, gentlemen, your obedient servant, "Messrs. Baring Brothers & Co."

"DANIEL WEDSTER."

There can, of course, be no further doubt as to the law on this important subject; and we trust that the states will respectively evince that high moral sense, and determination to pay their just debts, for which their distinguished countryman gives them credit. We confess.

however, that we are not without our misgivings on this point. The extreme facility with which loans on American account have recently been raised in Europe, and especially in this country, on all manner of securities, will turn out, in the end, a serious loss to America; inasmuch as it has tempted her citizens to engage, without sufficient consideration, in the most gigantic undertakings, and to generate and diffuse a spirit far more akin to gambling than to the pursuits of sober industry. In consequence, a vast amount of capital has been unprofitably expended, and to little better purpose, in fact, than if it had been absolutely thrown away. Now, the question which our countrymen, who are so fond of investing in American securities, would do well to ponder, is, will the states continue, after the excitement of the period of expenditure is gone by, regularly to pay the interest of these debts? Suppose that a system of universal suffrage were established in this country, and that we had several millions a year to pay to France or Russia, for loans borrowed from them, and expended less, perhaps, for the public advantage than for the private benefit of the parties who negociated the loans: under such circumstances, we rather incline to think, should any thing occur to excite our prejudices against our foreign creditors, that there would be no small risk of a serious interruption taking place in the payments due to them. And if such a thing might, in the supposed case, be not unreasonably predicated of England, it is not uncharitable to suppose that it may also occur in America.-S.

GALACZ. To the conclusion of the paragraph, vol. i., page 701, of this edition, annex the following:

Navigation of the Danube.-Steam navigation was first established on the Danube in 1830, since which the undertaking has gone on prospering, so much so, that the communication between Vienna and Constantinople is now maintained by a line of seven steam vessels. The Austrian steam company, which was the first in the field, have extended their scheme by starting vessels between Vienna and Linz, and a Bavarian company commenced in 1938 running a vessel between Ratisbon and Linz. It ⚫is probable that in a year or two steamers may ply from Ulm downwards.

At present steam boats ply on the Danube as long as the river remains free from ice (usually from February or March to November), from Ratisbon to Linz, once a week; Linz to Vienna, 10 hours, once a week; Vienna to Presburg and Pesth, twice; Pesth to Drenkova, once a week; Gladova to Galacz, once a week; Galacz to Constantinople, once a fortnight.

The voyage from Vienna to Constantinople, including stoppages, is seldom performed in less than fourteen days, and sometimes occupies seventeen; in returning against the stream it takes at least a month, including ten days' quarantine at Orsova. The fare, first place, is 134fl., about 131.; second place, 94fl.

The navigation of the Danube by steamers is unfortunately interrupted for a length of about fifty miles, between Drenkova and Gladova, by rocks and rapids, the lowest and most considerable of which is a sort of cataract, called the "Irongate," about three miles below the Hungarian frontier. It is worthy of remark that the most illustrious of the Roman emperors, Trajan, alive to all the advantages to be derived from the easy navigation of the Danube, had with equal industry and sagacity formed a road, or towing path, along the river's edge for facilitating the operation of towing, of which the remains are still extant, with an inscription commemorative of the completion of the works. It has been proposed to overcome the difficulties in the way of the navigation by renovating the old Roman road, and deepening the channel contiguous to it. But it rarely happens that attempts to improve the navigation in the bed of a river, under any thing like similar circumstances, are even tolerably successful. The better way undoubtedly would be, were it practicable, to construct a lateral canal, or rather a canal from the mouth of the Bereska to Palanka, which would not only avoid the rapids, but also shorten the navigation by getting rid of the bend of the river by Orsova. But the difficulties in the way of such an undertaking, from the nature of the ground, are said to be insuperable; and it is, therefore, probable that the distance of 50 miles along the rapids will continue, if not always, at least for some considerable time, a portage. The evil, however, of this break in the navigation has been diminished, as far as possible, by the construction of an admirable carriage road (recently finished), at great expense, by the Hungarian diet, from Moldova to Orsova. In the extent of excavations in the rock, and terraces of masonry, upon which it is carried, it is not inferior as a specimen of engineering to the finest roads over the Alps. Several steamers have been transported down these rapids at the season of floods, small barges pass them at all times, and little boats, laden with wax and wool, are towed up by men and oxen. The passengers and goods conveyed by the steamers are transferred from Moldova in row-boats, to Gladova, below the Irongate, where they embark on another steamer.

A railroad is nearly completed from Brunn, the capital of Moravia, to Vienna; another railroad diverges, from the Danube, at Linz, north to Budweis in Bohemia, where it reaches the banks of the Muldau, and through it communicates with the Elbe.-A.

GUAYAQUIL.

Account of the Export of Cocoa from Guayaquil, during each of the Six Years ending with 1838, specifying the Countries to which it was exported, and the Quantities sent to each.