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ART.

CONTENTS OF NO. I., VOL. XL.

ARTICLES.

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1. CAUSES THAT PRODUCED THE CRISIS OF 1857 CONSIDERED. The Importance of the Subject-Difficulty of Understanding it-Four Operating Causes-Monetary Question Involved in Politics-Prejudice against Paper Money and Banks-What is Money? -Banks-Propositions of Hon. A. Walker in Part Considered-The Uses of Banks-Fluctuations of Money in Quality and Quantity-Paper Money has not the Cost Value of Coin-Does Paper Money Drive Specie out of the Country?-Paper Money Stimulates and Depresses Credits-Is Paper Money the Cause of Bankruptcies? -Does Paper Money affect Prices?-The Question Discussed-Condition of things in 1857 compared to a Work Shop-Statistics of Specie-An Estimate of the amount of Banking Capital and Paper Money at different Periods - Paper Money did not Produce the Crisis of 1-57-Amount of property in the United States-Foreign Debt of the United States. By GEORGE S. WARD, Esq., of Massachusetts

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II. COMMERCE OF AUSTRIA, WITH REFERENCE TO ITS CURRENCY. Bank of Austria-Suspension-Resumption-Geography of Austria--Its Origin and Growth -Wars--Present Extent and Population--Bankruptcies -Debt--Revenue and Expenditures--Borrowing-Commercial Policy - Money Metallic-Convention Money-Old Coinage-New Coinage-Currency Reform-Bank Notes-Paper not a Legal Tender-Bank of Vienna - Formation-Circulation-Condition--Decree for Resumption-Effect of Decree No Credit Currency-Commercial Policy of Austria--Iron ManufacturesGrowth of Liberal Ideas-Credit Mobilier-Railroads --Agriculture-Beet-root Sugar, progress of Taxes on-Imported Sugar-Commerce of Austria-Manufactures--Spindles -Cotton Manufacture-Reciprocal Intercourse-Tariffs of United States, Zollverein, and Austria compared in United States Currency

No. LX.

III. COMMERCIAL AND INDUSTRIAL CITIES OF THE UNITED STATES. RICHMOND, VIRGINIA. Seat of Justice of Henrico County--Situation--Head of Tide-water-Largest City of Virginia-Neighborhood-Seven Hills-Public Buildings-Squares-Churces-Publications-Water-power-Mills-Climate--Supply of Raw Materials--Table of Manufactures-Recapitulation-Artistic Products-Merchandise-Sales of Real Estate-Live Stock-Industrial Pursuits --Miscellaneous-Professional - Officers --General Recapitulation-Large Capital required --Produce Purchases for Cash--Merchandise on Time-Capital Invited-Banking Capital-Insurance - Inspections -Canals and Railroads-Shipping-Steamers-Foreign Trade -Tobacco Exports--Population and Property of Richmond-Finances-Water Works-Gas-City Debt--City Property -Comparative Products per Head - Property per Head of Population. By GEORGE BAUGHMAN, Esq., of Richmond, Virginia...

IV. TEXTILE FABRICS OF THE ANCIENTS..

JOURNAL OF MERCANTILE LAW.

Damages for Non-delivery of Sugar....
Practice-When a Counter Claim can be Sustained
Decisions in Revenue Cases.....

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COMMERCIAL CHRONICLE AND REVIEW.

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Supply of Money-Decline in Imports-Specie in the City--Amount in Banks-Exchanges, Table of-Rates of Money Abroad-Silver Shipments - Rates of Exchange--Specie Movement--Exports of Boston and New York-Nature and Destination--Coinage at Philadelphia-New York Assay-office Operations-United States Coinage - Exports of Gold -Increase of Coins-Silver Coinage-Legal Tender-Metallic urrency-Improved Business-Specie in Treasury-Excess of Expenditure--United States Debt--Semi-annual Interest........... 76-89 VOL. XL.-NO. I.

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JOURNAL OF BANKING, CURRENCY, AND FINANCE.

United States Finances for the Fiscal Year 1858.

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State Taxes.-The Debt of Nashville, Tennessee..

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City Weekly Bank Returns-Banks of New York, Boston, Philadelphia, New Orleans, Pittsburg, St. Louis, Providence..

Assessed Valuation of Albany..

Banks of South Carolina.-Debt and Finances of Georgia...
Valuation of Buffalo, New York...

STATISTICS OF TRADE AND COMMERCE.

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General Statistics of North America.
United States Commerce for 1858...
General Statistics of Japan.....
Reciprocity...

American Treaty with China. .......

COMMERCIAL REGULATIONS.

NAUTICAL INTELLIGENCE.

Lights and Fog Signals....

Cherrystone Inlet Lighthouse and Stingray Point Lighthouse....
Notice to Mariners-Kingdom of the Netherlands..

Entrance to the River Thames, Princes and Horse Channels......

Lighthouses on Cape Grosso, on the Island of Levanza..

Fixed Red Light at Port Ciotat-Coasts of France and Corsica............
Notice to Masters of Alien Vessels.....

JOURNAL OF INSURANCE.

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Bishop Rock Lighthouse, Scilly Islands.-Survey of the Roccas, off the Coast of Brazil....... 111

Wisconsin Insurance Law..

Insurance Companies of Boston.-Life Insurance in England......

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POSTAL DEPARTMENT.

Statistics of United States Post-office, 1858...

Rates of Foreign Postage.--The British Postal System.........

RAILROAD, CANAL, AND STEAMBOAT STATISTICS.

Wear and Tear of Iron on the Pennsylvania Railroad and Branches...

Austrian Railways.-Canal Receipts and Disbursements....

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Wheat Crops of California.

STATISTICS OF AGRICULTURE, &c.

The Catawba Vintage of 1858.-Hog Statistics of Kentucky.

STATISTICS OF POPULATION, &c.

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THE BOOK TRADE.

Notices of new Books or new Editions

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HUNT'S

MERCHANTS' MAGAZINE

AND

COMMERCIAL REVIEW.

JANUARY, 1859.

Art. I.-CAUSES THAT PRODUCED THE CRISIS OF 1857 CONSIDERED.

IMPORTANCE OF THE SUBJECT-DIFFICULTY OF UNDERSTANDING IT-FOUR OPERATING CAUSES-MONETARY QUESTION INVOLVED IN POLITICS-PREJUDICE AGAINST PAPER MONEY AND BANKS-WHAT IS MONEY-BANKS-PROPOSITIONS OF HON. A. WALKER IN PART CONSIDERED THE USES OF BANKSFLUCTUATIONS OF MONEY IN QUALITY AND QUANTITY-PAPER MONEY HAS NOT THE COST VALUE OF COIN-DOES PAPER MONEY DRIVE SPECIE OUT OF THE COUNTRY?-PAPER MONEY STIMULATES AND DEPRESSES CREDITS-IS PAPER MONEY THE CAUSE OF BANKRUPTCIES ?-DOES PAPER MONEY AFFECT PRICES? THE QUESTION DISCUSSED-CONDITION OF THINGS IN 1857 COMPARED TO A WORK SHOPSTATISTICS OF SPECIE-AN ESTIMATE OF THE AMOUNT OF BANKING CAPITAL AND PAPER MONEY AT DIFFERENT PERIODS-PAPER MONEY DID NOT PRODUCE THE CRISIS OF 1857-AMOUNT OF PROPERTY IN THE UNITED STATES-FOREIGN DEBT OF THE UNITED STATES.

It is now more than a year since the commercial and financial crisis of 1857 broke upon us. It came suddenly and unexpectedly. It was intense, wide-spread, and painfully disastrous. A few persons were expecting what is called a "change of times," a depression in business, and an unusual scarcity of money, but no one had the slightest conception of the reality. The time that has elapsed since it occurred favors an impartial investigation as to the cause or causes, both because the feeling produced has somewhat subsided, and because facts have been developed throwing light on the subject.

The importance of understanding this matter can scarcely be overestimated. It was a great public calamity, and not occurring in consequence of war, pestilence, or famine, nor from any extraneous or outside influences, and full statistics existing in regard to all the great interests of the country for many years, there is every reason why the subject should be so thoroughly understood as to produce general unanimity of opinion among intelligent men in regard to the causes. But how different is the

fact.

There are scarcely any two who agree, and especially in detailsmany judge from their own stand-point or experience, not looking at the whole subject; others, and they are numerous, have special theories by which they explain every fluctuation in business-and then the great

mass are ignorant and look outside and beyond themselves-they are right and all else is wrong; this is their reasoning.

There are four great operating causes, or controlling interests, that have undoubtedly exerted, and that do exert, at all times, a marked influence upon the business and the prosperity of the country, namely, our banks, banking, or monetary system; the tariff; speculation and over-trading; and the credit system. Most of the persons who have written on the subject, so far as we have been able to ascertain, have attributed the crisis of last year to some one or all of these causes.

While all these act reciprocally upon one another, and each and all have more or less influence in shaping and directing our business as a whole, we think they have each, respectively, exerted a widely different influence in regard to the crisis of last year. This we propose to consider briefly; and we shall take up these interests in the order in which they are referred to above.

The time was when the monetary system of the country could be discussed on its merits. General Jackson's opposition to the United States Bank caused the bank question to become a political question. At first, it was simply opposition to a national bank-not on its merits, but because it used its influence for political purposes-and approval of State banks. The latter were created in great number, without much regard to the wants of the community, and, not unfrequently, for party purposes, or to insure political ends. All such were in the main, as a matter of course, unsuccessful. "Down with all banks" became the party cry; all good Democrats were expected to oppose banks, and all good Whigs to approve of them. Thus the banking question became a leading party question, and it was discussed in the same spirit that prominent party questions are discussed in times of high party excitement. Prejudice, and not reason and judgment, was appealed to. Triumph was the object, and not truth. Although this question has, to a great extent, ceased to be a foot-ball in politics, there is yet a popular prejudice against banks and paper currency that is ready to attribute all unfavorable fluctuations in business, whether confined to an individual or extending over the country, to them. Much of this prejudice arises from ignorance of the nature and the functions of money, and of banks, and of paper currency.

What is money, and by what laws is it governed? Money consists of gold, silver, and copper coined. It is governed substantially by the same laws that regulate other property. It possesses a real cost value, and is the standard, or measure of money value, or of exchangeable value of all commodities in any and all communities where it is used and circulated as with us. Paper money has no intrinsic value-a bill of $100 is worth no more of itself than a bill of $1. It is a representative of property, or evidence of debt. It is not a measure or standard of value; neither does it influence prices any further than so much credit. It is a substitute for gold and silver, as a check, or a draft, or a bill of exchange, or a negotiable note is. A in Boston wishes to pay $100 in New York; he procures the amount in a bank bill, or a certified check, or in a draft, or bill of exchange, suiting his own convenience, in whatever form he selects; to him it is paper money, more valuable under the circumstances than coin, although it has no cost value, and is simply a representative of property, or evidence of debt. It is a substitute for coin or property. Money, both real and paper, is a motive power in business. It facilitates

business and the exchange of products. Supply and demand, in a measure, regulate its value. The amount required by a community is determined by the amount and the character of its business, the method of transacting that business, the geographical extent over which it is spread, and the facilities of communication. One community of equal population with another may have ten times the amount of money of the other, and still have very much less in proportion to its business wants. Whether money is plenty or scarce is not ascertained by the number of the population, neither is an increase of money or banking capital to be determined by comparing the amount at one period with that of another. It is regulated by the amount of business-this is the only true criterion. Banks are the aggregation or association of previously acquired individual wealth. They do not create wealth of themselves any more than does a plow or a hoe. They aid and facilitate business as a steamengine aids and promotes mechanical production. Business exists and banks are required; they are not the forerunners but the followers of business. Business is made or created in a community, and a bank is required as a place of deposit, to collect and to facilitate the transmission of funds between different points, and to provide a currency. In these and other ways they aid in creating wealth; they are a labor-saving machine, one of the most important of modern times.

In the few suggestions we propose to make in regard to the influence or agency our banking system and paper money had in producing the crisis of 1857, we do not intend to discuss the whole theory of banks and paper money, but to take a practical view of the working of the system as developed through well regulated banks. It is contended by one class. of writers, and they are very numerous, that not only the crisis of last year, but that all disturbances in our financial and commercial affairs, arise directly or indirectly from our banking system. To this class belongs the Hon. Amasa Walker, of this State. He takes extreme or ultra views of the subject. He published a series of articles in this Magazine, all but one prior to the last crisis, discussing the points at issue. We propose to refer to these articles, not considering every point, but some of the more prominent ones, rather as preliminary to the main question. Mr. Walker is an able writer, has studied and taught political economy, and has had a large experience in business, and he has undoubtedly made the most of his case.

We begin with his article in the August number of 1857, on "Mixed Currency-its Nature and Effects."

He assumes-1. That a mixed currency is fluctuating, both in quantity and quality.

2. That not having the cost value of gold and silver, it can perform well only one function of money, to-wit, that of medium of exchange.

3. That it is not correct as a standard of value, consequently, it is local in its use-money at home and "moonshine abroad."

4. That it causes an extension of credits, demand for foreign products, and the export of specie.

5. That it stimulates and depresses credits.

6. That it produces bankruptcies, which, he says, occur "just in proportion to its expansibility and contractibility."

These points are argued somewhat at length, and a variety of bank statistics are given by way of illustration and proof. He says, "fixing

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