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:

66 U.S....

256,000,000-Specie, $1,666,350,000; to each person, 6 50
12,800,000
32,000,000;

1840, population in Europe. 234,000,000

250

America 44,000,000

66

U.S.... 17,000,000

278,000,000-Specie, $1,666,000,000; to each person, 6 00

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, $280,000,000; to each person, 7 66 400,000,000;

66

France 38,000,000

66

1053

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:

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:

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 13 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

of gold and silver for the civilized world. We shall have in fact as a currency more than all Europe and America; it will amount to about three thousand millions of dollars-about a third more than there is now in Europe and America. Is there any reason why this increase shall not continue? We do not say it will in the same ratio; but we do say, that we are relatively, as it respects Europe, in a better condition for competing with them than we were in 1830. Our great material interests are improving more rapidly than theirs.

In looking at the statistics which we have presented of banks, instead of that great increase of banking capital and paper money which Mr. Walker speaks of so often, we find there has been an actual relative decrease, since 1830, in each, of three quarters, that is, of 75 per cent. The facts are these-the positive increase of banking capital has been less than three hundred per cent; that of paper money has been about the same. The increase of the business of the country has been about one thousand per cent in the same period, showing, as we have stated, that there has been really a decrease in bank capital and paper money of 75 per cent.

It is difficult to see how any candid and unprejudiced man can, with the facts we have given before him, assert that the recent crisis was caused by our "mixed currency." If one dollar of paper money produced such results in 1857, why did not four dollars have, at least, as great an effect in 1830? There was no great commercial and financial disturbance at the latter period. In considering the influence of paper money, we are not disposed to undervalue it, and for argument's sake we will admit it to be all that it is said theoretically to be; it is impossible then to see how an amount, in any community, equal to only one and three-quarters per cent on the property of the community, could bring about such a state of things as existed in 1857.

We think an impartial and thorough investigation will convince any man, whose judgment is not beclouded by hobbies and theories, that the defect in our system, and the one from which our last great commercial and financial disturbance arose, is the abuse of the credit system. A careful examination of the condition and extent of commercial credits, and the amount of indebtedness existing at the time and for a year or two prior, will show this fact. But this branch of the subject we cannot discuss now.

Another fact in regard to these statistics we wish to notice-it is that in reference to the amount of property in the United States and the amount of our foreign debt. In 1855, Hon. James Guthrie, then Secretary of the Treasury, estimated the property of the United States as upwards of eleven thousand millions of dollars. This estimate was prepared evidently with care. It is certainly not too high for the present period. Our foreign debt is variously estimated from two hundred and fifty millions to five hundred millions of dollars. The latter sum is the highest figure of those who take the most desponding view of our financial and commercial condition, and, although we think it above the actual fact, we assume it for our calculation, and we find that we owe a foreign debt, which is chiefly in the form of private and public corporate securities, payable through a period of fifty years, in round figures, of four-and-a-half per cent on our property.

CAMBRIDGE, Massachusetts, December 7th, 1858.

G. L. W.

Art. II-COMMERCE OF AUSTRIA, WITH REFERENCE TO ITS CURRENCY.

BANK OF AUSTRIA-SUSPENSION-RESUMPTION-GEOGRAPHY OF AUSTRIA-ITS ORIGIN AND GROWTHWARS-PRESENT EXTENT AND POPULATION--BANKRUPTCIES-DEBT-REVENUE AND EXPENDITURES -BORROWING COMMERCIAL POLICY-MONEY-METALLIC-CONVENTION MONEY-OLD COINAGENEW 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 MANUFACTURES-GROWTH OF LIBERAL IDEAS CREDIT MOBILIER-RAILROADS--AGRICULTURE--BEER-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.

Ir is now ten years in June last since the revolutionary troubles of Europe compelled the National Bank of Austria to suspend its payments in specie; it has now by Imperial decrees, following the condition of the convention held in 1856, and also the currency convention of last year, resumed payments November 1st, 1858. This is an event which, with the extension of railroads in Germany, the amelioration of commercial restrictions, and the improved crops of the present year, is calculated to give a new impulse to the commercial relations of the United States with Austria, as well as the vast empire of Germany. We therefore enter into a brief outline of events in order to recognize the present aspect of affairs with greater precision.

Whoever regards the great panorama of Germany will be struck with the curious and picturesque view presented by the Austrian Empire. It presents the greatest variety of dialects, of costume, of custom, of interests, political and material, all blended under one Imperial sway, and moving with some degree of regular progress. If Austria has made less progress than some other States, since Rudolph, Count of Hapsburg, in Switzerland, was, in the thirteenth century, raised to the Imperial throne, it has been owing perhaps as much as to the Mosaic nature of the political structure and the "paternal" character of the government, allowing its people to move only in such a way as the ruling individual thought best for the general interests, his own included. The manifold marriages of the line of Hapsburg princes did much to extend the Empire, while it diversified its people, and the growing power of Austria resulted in the thirty years' war, by which all Europe sought to curb the progress of that State, and which ended in the treaty of Westphalia in 1648, securing the freedom of the Protestant religion and the independence of the German States. Fifty years later the Turks were finally expelled from Hungary, and that kingdom secured to the Empire. In 1740, the male line of the House of Hapsburg had failed in the death of Charles VI. Maria Therese, his daughter, married to Francis of Lorrain, succeeded to the crown. That princess was no sooner seated on the throne than Great Frederic of Prussia seized upon Silesia, and Maria Therese, by involving France in the seven years' war which followed, cost that country 200,000 men, $100,000,000, and large American possessions.

The continued intrigues of that powerful princess against France, ruled by the weak and degenerate successor of Louis XIV., were a leading cause of the French revolution, from whence sprung the avenging sword of Napoleon, that twice entered Vienna, and produced those financial evils

under which Austria groans to this day, and which, after forty years of peace, are yet a grand source of trouble. As Maria Therese duped the weak rulers of France to ruin themselves by supporting her cause against the supposed growing power of Prussia, so was Austria brought twice to the brink of destruction by the intrigues of the English government, which made her the tool in the attempt to sap the power of Napoleon. The losses of territory that Austria suffered during the French wars were subsequently adjusted at the Congress of Vienna. But the losses and devastation which her people suffered by the French have not yet been recovered from. The territorial adjustment, which was made by the Congress of Vienna in 1815, continued, with the exception of the seizure of Cracow by Austria, in contravention of the treaty of Vienna, until the revolt of 1848; a new territorial adjustment was then made. The division of the empire, with the number of the people, as given by Joseph Hain, in 1851, Secretary of the Ministry, was as follows:

These give the extent of territory and number of the people according to the most recent figures, but in Austria, as in other countries of Europe, the population of late years has concentrated in the cities. Thus, Vienna, in 1838, had 326,250 souls, and in 1854, 431,889. The finances of Austria have never been published as freely as those of other States, and the expenditures never until very recently. But it follows that after the severe losses that country sustained in the early part of the present century, that they could not be very flourishing. The chief revenues may be stated in the following proportion-direct tax, 88,000,000 florins, of 484 cents each United States money; indirect taxes, 139,000,000 florins; mines, money, railroads, 10,000,000 florins; other items, 22,000,000 florins-total, 258,000,000 florins, of about $129,000,000; while the expenses are $150,000,000. The immense efforts made necessary by the consequence of the wars with France, from 1790 to 1816, had caused