in price. The average cost of refined bar iron at the ports of Boston, New York, Philadelphia, and Baltimore, for seventeen years, from 1840 to 1856, inclusive, was a fraction over $70 a ton. Previous to this period it was higher. In 1840 it was $92 50; in 1841, $79 87; in 1856, $69 86, showing a general decline. There are certain staple articles of hardware, such as Ames's shovels, Collins's and also Hunt's axes, that have been for twenty or thirty years uniformly of nearly the same quality and price; the only variation has been a slight improvement in quality, and a small per cent diminution in cost. In the great bulk of hardware there has been a very considerable decline in price, especially such as is manufactured chiefly by machinery. Silks have varied probably more than any other article. Since 1824, the raw material, the cost of which must, in the main, regulate the price of the manufactured article, except when fashion or fancy regulates it, has varied over three hundred per cent, by a tariff of prices published in Lyons, France. Linen goods have also fluctuated in price. In the main, there has been a decline. All plain goods, and they constitute the bulk of linens consumed in this country, have fallen at least thirty per cent. Woolen goods constitute one of our most important articles of manufacture and consumption. We consumed in 1856 about 80,000,000 worth. Of these, we imported $23,000,000, and manufactured the remainder. It is impossible to decide upon the variation of prices in detail. All kinds, or nearly all kinds, have decreased in price very considerably-fully 33 per cent, if not more. Such articles as we manufacture have fallen more than those we do not manufacture. This is true generally in regard to all kinds of goods or manufactures produced chiefly by machinery. Cotton goods exceed in amount the woolens. We consumed in 1856 about $90,000,000 worth. Of these, we imported $24,000,000, and manufactured the remainder. We have fortunately a variety of standard articles, that have been uniformly in quality the same for twenty or thirty years, enabling us to judge with great accuracy of the variation of prices. The Merrimack prints, the prices of which we find in the Hon. N. Appleton's pamphlet on Lowell, have been for upwards of thirty years the same in quality. Their prices have varied as follows: The Lawrence "C" sheetings are another article, the quality of which has not varied. Through the kindness of a gentleman in Boston, we have the wholesale prices for twenty-three years, from 1834 to 1856. We give the average prices for each five years and the last three : We have, from the same source, the prices of Suffolk drills for a like period: 3 ed. Causes that Produced the Crisis of 1857 Considered. 33 to this pe ; in 1856, articles of , that have nality and ity, and a › there has Here we have three representative articles, showing that, within the last twenty-three years, there has been a decline in the price of cotton goods, at least such as the great body of the laboring population wear, of from 30 to 45 per cent. Some other kinds of plain goods have fallen still more. We are probably justified in saying that cotton goods, the great bulk of those consumed in the United States, have fallen 40 per cent in twenty-five years. In reviewing our statement in regard to prices for twenty-five or thirty years, we find that butcher's meat and butter and cheese have locally doubled in price; that mess beef and mess pork have advanced from 12 to 20 per cent; that breadstuffs have, some kinds, risen, others fallen-the variation in the long run has been small; that groceries have fallen somewhat-take the ordinary articles of tea, coffee, sugar, molasses, salt, and spices, and there has been a perceptible decline; that boots and shoes have risen somewhat-not so much as stock out of which they are manufactured; that hardware in no instance of any consequence has risen-in the main, it has fallen from a nominal to 40 per cent; that linens have fallen certainly 30 per cent, except where style has regulated the price; that silks have fluctuated 300 per cent; that woolens of nearly every kind have fallen very considerably-many kinds from 25 to 50 per cent; and that cottons have fallen about 40 per cent. During this period, say of thirty years, while this decline of prices, with the exceptions stated, has been going on, the wages of the laboring people, and we embrace all classes except those engaged in the professions, have doubled. We do not assume that these prices have fallen gradually from year to year, for such is not the fact. There are causes constantly occurring that affect very materially the price of a given article. A short crop in the United States or in Europe will raise the price of breadstuffs and provisions. A partial failure in the cotton crop will raise the prices of cotton goods for a year or two. Over-production in any one article, and it not unfrequently occurs, will lower the price of that article perhaps for two or three years. These disturbing causes or exceptions are constantly taking place. They are a part of the changes incident to all businessthey are mere exceptions to the general rule, and are not regarded (neither should they be) in deducing general results. It is the general opinion that "everything" has risen in price within the period under consideration, and very many attribute this supposed rise to the great increase of paper money. Being aware of this popular notion, we have examined the question of prices with great care, and we have no doubt that the conclusions we have come to are substantially correct. We come now to the more special consideration of the main question, viz., did our mixed currency, or our monetary system, bring about that extraordinary state of things which finally culminated in the crisis of 1857 ? We propose to consider this question with reference to facts rather than theory, and under three divisions-1st. Has our paper money driven specie out of the country? 2d. Is our currency one of paper in fact, or as compared with the past, or as compared with that of other countries? 3d. In view of existing facts, is there any good ground for alleging that the crisis of 1857 was an effect of our monetary system? We have in this country a variety of interests, all acting reciprocally upon one another. There are agriculture, mining, manufactures, navigation, commerce, railroads, banking or money, and credit. The two latter stand in the same relation to the former that motive power does to machinery. All these interests in the aggregate, with their respective collateral interests, constitute a system. Under proper management, in a free country like ours, they adjust themselves to one another, and work harmoniously, producing wealth and happiness. The crisis of last year, so terrible in its effects, so wide-spread, and so thoroughly diffused over the country, extending from one end to the other, and even to the remotest part of Europe, is conclusive evidence that something in this system is wrong, that the parts are not adapted to one another, or that there has been an overworking somewhere. Perhaps we can illustrate and explain our idea of the extraordinary state of things existing last year, by comparing our system to a large work shop driven by steam. There is-1st, the boiler; 2d, the engine, the two constituting the motive power; 3d, there is a room for the manufacturing of agricultural implements; 4th, one, with ship-yards connected therewith, for the building of steamers and ships; 5th, one for the manufacturing of cotton and woolen goods; 6th, one for the manufacture of railroad cars and locomotives; 7th, one for miscellaneous manufactures; 8th, one for general business. In all the departments there is a great number of hands at work. The whole establishment is under excellent management, working admirably well, and producing satisfactory results; the entire production is selling, and the demand not satisfied; the proprietors decide to increase the speed of the machinery; this involves the necessity of adding more steam. to the already over-strained boiler. Unfortunately one of the engineers had coupled on to his engine half-a-dozen or more railroad locomotives to insure a little extra profit, thus diverting a part of the power of the engine from its legitimate sphere. When the word came to put on more steam and to increase speed, this engineer attempted to uncouple or disengage all the locomotives at once, and with the engine in full motion. His co-engineers, and also the workmen in the mill, remonstrated, urging upon him that with such a head of steam, and increasing too, the slightest derangement in the movements of the engine might be fatal, and that he had better wait, take time to work off a part of the steam, and slacken speed, when he could "cut off" the locomotives with safety. This he refused in the most offensive manner to do-off went the locomotives, and one of the valves of the engine, by this sudden shock, became deranged in its movements, failed to perform its office of working off steam, throwing the steam back upon the already surcharged boiler, and, quick as thought, it exploded, stopping the entire establishment, deranging all and destroying much. The steam-boiler represents our credit system, the engine the monetary system, and the other departments the great interests of the country, all constituting one great whole. There was doubtless an over-action in each department, but the root of the evil lay in the excess of steam in the boiler. It would undoubtedly have burst soon from sheer pressure; the derangement of the engine hastened the explosion, and intensified the panic features of the crisis. The valve in the engine that first got out of order and the obstinate engineer represent the banks and their directors of New York. They had been engaged, as the engineer had, in business not strictly legitimate. They had been loaning large amounts of money to brokers "on call," and when the Ohio Life and Trust Company failed they were frightened, and attempted to call it in abruptly. This could not have been done with safety even in ordinary times and from regular and legitimate customers. But to make such a call upon the brokers, who, it must be remembered, are in part by profession and practice "panic makers," it was, as the sequel proved, a dangerous and an imprudent experiment. A panic ensued, spread through the city and thence over the country with a speed only limited by the velocity of electricity; from the country it reacted upon the city, until the crisis was upon us in its full force. The following statistics exhibit the aggregate of the population in Europe and in America, respectively, including the United States, in 1830, 1840, 1850, and 1856; the population of each country, and also of the United States, at the same periods, and also the aggregate amount of specie at each period, and the amount to each person, and also to each person in the United States : 278,000,000-Specie, $1,666,000,000; to each person, 6 00 88,000,000; 66 U.S.... 17,000,000 66 66 4 88 We also give the population of Great Britain and of France, and the aggregate amount of specie in each country, and the amount to each person: 1856, population in G. B... 30,000,000-Specie, $230,000,000; to each person, 7 66 400,000,000; 46 France 88,000,000 46 10 53 We also give the amount of banking capital, paper money in circulation, and specie in this country in 1830, 1840, 1850, and 1856, respective ly: Banking capital ...... We have felt the importance in discussing this question of ascertaining whether the banking capital and the paper money of the country have been greatly increased, as Mr. Walker and other opponents of our banking system allege, within the last twenty or thirty years. When we say increased, we mean, of course, relatively with the growth and expansion of business. "Large amount of banking capital," and "small amount of banking capital," are relative terms; and are only determined by the extent or amount of the business of the country. This is so obvious that it is unnecessary to illustrate or explain it. After investigating the matter with care, we have come to the conclusion that the amount invested in manufactures, the product of manufactures, the aggregate of imports and exports, the amount of tonnage and its value, and the amount invested in railroads, all in the aggregate furnish the most reliable and accurate basis that the statisties of our country afford for determining the relative and true amount of the banking capital and of paper money at any given period. We give below the statistics of these great interests for 1830, 1840, 1850, and 1856, valuing at each time the tonnage at $50 a ton, and adding to the aggregate amount of each period the per cent which the banking capital and the paper money respectively then amounted to on them, and also the per cent which they amounted to on the whole property of the United States in 1855, as estimated by Mr. James Guthrie: Capital in manufactures. Aggregate Bank'g cap., each period 1840. 1850. 1830. 1856. $62,000,000 $267,726,519 $527,209,193 $843,529,193 112,645,466 441,360,814 1,055,595,899 1,688,953,438 144,726,428 239,227,465 330,037,033 685,753,129 The amount of property in the United States, in 1855, was eleven thousand three hundred and eighteen millions of dollars, the banking capital amounted to 3 per cent on it, and the paper money to 12 per cent. We have a specific question before us-"Did our mixed currency bring about that extraordinary state of things which finally resulted in the crisis of 1857 ?" The statistics we have given in regard to specie, the increase of business, the amount of property in the United States, and the diminution of banking capital and of paper money, are significant facts bearing on the question. They show us at a glance that the popular belief respecting the increase of paper money and the decrease of specie is erroneous; and, we think, they show also that the idea that our currency produces all our financial troubles is simply absurd. In 1830, there was in Europe and America (including the United States) six dollars and fifty cents in specie to each inhabitant; in the United States, at the same time, only two dollars and fifty cents. From that time to the present there has been a relative change going on, greatly in favor of this country. In 1856, we had nearly double the amount to each inhabitant that there was at the same time to each inhabitant in the countries before referred to. They had four dollars and fifty-four cents to each inhabitant and we had nine dollars and twenty cents, and we probably now have at least twelve dollars to each person, which is more than Great Britain has, and about the same as France. Considering the newness of our country, with an active foreign trade extending over the world, and in competition with the old and wealthy and manufacturing exporting States of Europe, all eager to obtain the precious metals, this result is truly wonderful. There is another view to take of these statistics. In 1830, we had $32,000,000 in specie; we have unquestionably now $300,000,000, an increase in twenty-seven years of about ten-fold, or one thousand per cent. If the same ratio of increase continues for a like period we shall be the great depository |