In eight years the value received by those great avenues has doubled, while the national exports have increased but 30 per cent. If we deduct the value of cotton from receipts at New Orleans, and also from the national exports, the result is more marked. Thus the receipts increased $36,000,000 more than the exports, and this indicated the increase of internal trade. The production of domestic goods was also very large. The bales of cotton taken for consumption as reported in the annual returns of the New York Shipping List, as follows. These we have converted into yards, and averaged them on the population: Three times the cotton cloth, per head, is made now in the United States that was produced twenty years since, and the production has been very steady in its increase. It was 9 yards per head in the ten years ending with 1840, and 11 yards in the last ten years, assuming the current estimate for the population. Now, the consumption of cotton by the people of Great Britain, as given in Du Fay's circular, was 136,420,765 lbs. in 1849, which averages 4 lbs. per head. The consumption in the United States is 11 lbs. per head. Thus, in the United States, the inhabitants consume, per head, nearly three times as much as the inhabitants of Great Britain. We may now make another comparison, which is this, viz., to take a year when Great Britain consumed as much cotton as the United States took in 1850, and compare the exports: Now then, two important truths are manifest here, namely, in 1827 the United States consumed a quarter as much cotton as Great Britain. In 1849 we consumed three-eights as much. Thus we have gained 50 per cent upon England. Again, we manufactured last year as much as did England, in 1827, but we exported only $4,734,424, or $80,000,000 worth per annum less. England sold all she made, the United States consume all they make: deducting the cost of material, which, in 1827, was 7d, or in the aggregate, $35,000,000, she sold $50,000,000 of her labor for articles other than cotton. Her cotton, last year, cost $60,000,000, and she sold $70,000,000 of her labor. Now, if the people of the United States, instead of consuming two yards each, more than the English consume, should sell that for other things; our external cotton trade would be as large as that of England was in 1827; but our manufacturers have exclusively a home trade, what the English manufacturers never have had. The larger consumption of cotton in the United States keeps the prices higher, and by so doing, absorbs all the home make, and the quantities imported also. This home market has been over done. It is glutted, and the prices were naturally depressed. The annual returns of the Secretary contain the values of the dry goods imported. These as compared with previous years are as follows: IMPORTS OF DRY GOODS INTO THE UNITED STATES-FISCAL YEARS. The classification is not so extended as would have been desirable, but the general heads indicate the nature of the transactions. The aggregate increase, is, as compared with 1848, $5,836,781, of which each description partakes in nearly equal proportions. The increase in silk piece goods seems to have been greater than any other single article, but some different classification has no doubt varied the figures. It would seem to be the case, that the quantities of dry goods increase far less than the internal increase of trade. At New York the monthly operations are as follows: TABLE OF IMPORTATIONS AT THE PORT OF NEW YORK FOR 1849-50. August. November... December 1,525,866 362,286 2,307,589 5,556,448 13,580 416,191 1,884,502 3,991,150 5,305,422 17,974 384,702 1,525,199 1,702,664 3,630,539 9,752,769 Total 1850 1849 Increase..... $16,125,719 $8,643,980 $53,489,965 $44,976,382 $123,233,654 5,467,658 9,343,960 45,514,775 39,365,434 99,741,827 $7,975,190 $5,610,948 $23,491,827 $10,658,061 The increase of merchandise imported has not been large for the year, not greater than has been the exportation of domestic produce from this port. The importation of specie has been to a considerable extent from California, but for the last two months the amounts from that source were omitted in the table, inasmuch, as that they are really domestic productions, and do not, therefore, come properly under the head of importations. The exchange market continues firm, with a supply about equal to the demand. The exports of specie are less, having nearly ceased, but, perhaps rather owing to diminished supply, than to cessation of demand. The quotation for bills and specie this month, as compared with those of the same date last year, are as follows: This shows a very general rise in rates of exchange; but the price of silver is that which is most affected by the state of affairs. It will be observed that the United States and Mexican silver has risen 3 a 33 per cent, and that five francs have risen 2 cents each, while French gold has declined per cent, making a difference of 3 per cent in the relative values. It is also the case that Spanish and Mexican fractions have risen fromper cent discount to 1 per cent premium, notwithstanding that those pieces are really depreciated 10 to 15 per cent, by wear, below their nominal value. United States halves and quarters are at 33 per cent premium, and gold dollars command 1 per cent premium. This state of affairs is complicated by four leading causes:-1st, extra demand for silver; 2d, lessened supply of silver; 3d, over supply of gold in mass; 4th, short supply of small gold coins. In the first place, simultaneously with the California discoveries, the political disturbances in Europe caused a demand for silver for hoarding, and goods and property were sold to almost any extent to procure it. Under that operation, a vast quantity of silver went out of active circulation, as effectually as if it had returned to the mines. Following this absorption came the demand of govern ments for money for war purposes, and the silver paid out to troops, in small sums, went into the hiding-places of the peasantry who received it. Many of the governments, then, alarmed by the California accounts, repudiated gold as a currency, adhering to silver: This involved the exchange of many millions of gold for silver; thus still further increasing the supply of the former in the markets of the world, and diminishing that of the latter. This state of affairs in Europe caused a steady drain of silver from England and the United States. In England, the bullion in the Bank of England has fallen from £2,469,490, to nothing. From the United States, the exports during the past year have been nearly $10,000,000 of foreign silver coins, brought here, in the course of exchanges, from Mexico, and in the hands of immigrants, mostly the latter. From all quarters the rush of silver has been to Europe. In England, where the silver is not money, it has caused but little difficulty; but in the United States, where the foreign coins formed a large portion of the small currency, the inconvenience is becoming very great. In addition to the demands emenating from hoarding and changed standards of governments, the same motive, namely, the gold supplies, that induced the latter, induced also large speculations at home and abroad, to avail themselves of the general abundance of capital. In England, for instance, when money has scarcely commanded 2 per cent, if invested in silver, which has risen 3 per cent, it would pay very well. In the United States, the course of affairs has been nearly thus:-For two years, the immigration at New York has averaged 220,000 souls, who brought at the rate of $10,000,000 per annum in foreign coins about their persons. Owing to the want of a mint in New York, and the fact that foreign coins are a legal tender, these emigrants, passing West, distribute the coins throughout the country. As they do not pass readily, they soon find their way into the country banks for bills, and are then assorted and packed into kegs, and in the summer, when cotton bills are usually exhausted, and exchange rises, they are sent down to New York, for sale to brokers, by whom they are sold to exporters. This traffic affords a profit. The prospect of a relative rise in the value of silver, has induced many to hold these lots of specie; hence a diminished supply. It has also been the case that Mexican silver miners left for the gold regions, and thus caused a positive diminution in the annual supply. While these operations have been affecting the quantity of silver in circulation, gold has been procured in great abundance, falling in value, in large sums, relatively to silver; but, unfortunately, owing to the want of a mint in New York the vacuum created in the small channels of circulation by the withdrawal of silver has in no degree been supplied by small gold coins. This is at once obvious from the report of the mint operations. Thus there has been coined in the year $27,756,445 of gold. Of this amount $23,405,220 has been in $20 pieces, and only $481,953 in gold dollars. The silver coinage has been altogether only $420,000, making $900,000 of small coins to supply 10,000,000 exported, and probably $5,000,000 more withdrawn from circulation by speculators, making a loss of $15,000,000 small coins. The consequence has been an advance in the value of depreciated small silver coins, and an advance of 1 per cent on gold dollars. Had the coinage of small gold pieces kept pace with the withdrawal of silver, a great deal of the inconvenience experienced from the latter circumstance would have been obviated. Instead of providing for this coinage, Mr. Chandler, of Philadelphia, has proposed in the House to reduce the standard of silver coin. Such a law could be of no possible utility, unless coinage under it took place, and the Philadelphia Mint is altogether inadequate to it. A mint in New York is indispensable in any case, and its establishment would enable gold dollars, at most quarter eagles, to supply circulation. The same remark is applicable to the proposed three cent pieces under the new postage law. How are these to be coined without an additional mint? The absence of small coins stimulates the circulation of small bank-notes, a circumstance productive of evil. Furthermore, to alter the silver standard in a moment of transition, when most of the causes now operating upon the value of silver may suddenly cease, and without any positive information in relation to the probable continuance of the supply of gold, appears little less than absurd. On general principles, the supply of gold must fall off— that is to say, although the gold is there, those engaged in mining it make nothing, and production on a large scale will not continue under such circum stances. There is no doubt but the scarcity of small coins has promoted the increase of banks, which is very rapid. A subscription to a new city bank, with a capital of $1,000,000, has been completed. This multiplication of credits is the foundation of a revulsion, and its progress is checked only by the steadiness of the operation of the Independent Treasury, and the requirements of the New York Free Banking Law in relation to securities. The progress of banking in this State, as indicated in the returns of the Controller, are as follows: Years. 1842 1846 1847 1848 1849 SECURITIES FOR FREE CIRCULATION HELD BY THE NEW YORK CONTROLLER. ..... banks. mortgages. State stocks. 105,000 4,472,845 7,797,811 114,000 7,900,229 11,037,525 114,000 7,627,692 10,590,186 113 1,653,044 1,342,607 1,232,605 7,539,214 11,767,470 1850 136 2,320,914 1,287,346 2,894,481 8,108,210 14,610,951 There has been an increase of twenty-three banks, with an aggregate increase of $3,000,000 of securities during the year, of which more than half is United States Stocks, and the growing scarcity of New York Stocks as security, has induced the State Controller to propose the admission of United States Stock alone, instead of one-half, as now. There are several Safety Fund charter's which fall in this year, and will require stocks to enable them to organize under the new law. The chartered banks keep their circulation up to the legal limit, but the issues of the free banks are now gaining rapidly upon them, and will soon be in the ascendant. The progress of the two systems is as follows.— BANK CIRCULATION OF NEW YORK, DISTINGUISHING free and cHARTERED. |