I. MONEY OF COMMERCE-Progress of Private Credit-Banking in New-Orleans-Development of Trade-Accumulation of Specie-Supply of Specie-Interchange of Products-Demand for Capital-Value of Money-Bank of Eugland-Finances of France-Paper Projects-Banking System in New-York-Banking System in Ohio-Injurious Effects of Financial Legislation, By T. P. KETTELL, of New-York, 243 II. SUGAR MANUFACTURE-(Continued from August and Sept. Nos.)Means Resorted to to Extract the Juice from the Cane-Sugar-MillQuantity of Juice obtained uncertain-Hydraulic Press-Slicing and Drying of the Canes-Michiel's Process-Results obtained by Mill increased by care and attention-Five-Roller Mills-Four-Roller Mills-Want of Economy in the Employment of Megass as Fuel-Motive Powers applied to Sugar-Mill-Defective Cane-Juice-Its Imperfections-Filtration. By DR. EVANS, of London. 265 III. INDUSTRY OF THE SOUTHERN AND WESTERN STATESVirginia North-Carolina-South-Carolina-Georgia-Florida-Alabama-Louisiana-Mississippi-Tennessee-Kentucky-Ohio-Missouri Michigan-Illinois-Indiana-Iowa-Wisconsin.... IV. The Sword and the Olive Branch..... 285 304 310 VI. THE MERCHANT FLEETS AND NAVIES OF THE WORLD... 322 1. Great Britain-Progressive Increase of the Royal Navy-Naval Force in 1846...... 323 2. United States-Navy in 1799-Do. in 1812-Do. in 1815-Naval Victories-Navy in 1848—American Navy Yards............ 325 3. French Navy... 330 4. Russian Navy-Recapitulation.... 331 332 Commercial Marine-I. Great Britnin-II. United States-III. French VII. THE SUGAR CANE-Avequin's Review of McCulloh, Reviewed. By WILLIAM F. WILKINS, Franklin, La. 362 AGRICULTURE OF THE SOUTH AND WEST. 1. Cotton Crops-Manufactures at the South-Crop 1847-'48-Prices of Cotton-Prospects of Foreign Demand, &c..... 2. Internal Improvements in Texas.... MISCELLANEOUS STATISTICS, ETC. 363 364 5. The Army in Mexico-6. Massachusetts Enterprize.... 369 YIELD OF SACCHARINE LIQUIDS The Methods employed to ascertain the Quantity of Sugar contained in By Dr. EVANS, of London, 375 EDITOR'S ARM-CHAIR-Book Notices.. ... 377 379 NOTE. In the August No.. page 155, article, "Days of Grace," occurred the following line: "the drawers failing, &c." It should have been drawees. "The stoppage of the New Orleans House, Martin & Co., was caused by the previous failure of Lake & Co., in New-York, with. whom ample funds had been placed to face all the drafts of the New-Orleans House. IG A quantity of most interesting Statistical matter, has been unavoidably crowded out, and will appear in the next. POLITICAL events in Europe are at this time producing singular and injurious influences upon the relations of all commercial countries. In the last thirty years, or since the peace of Paris, international communication has been rapidly extending itself all over the continent of Europe. The development of steam in boats and on iron rails has brought the remote countries of the continent into intercourse with the sea-board, levelled barriers to trade, and promoted that interchange of mutual production in which consists the actual commerce of nations. Pari passu with this progress, credit and commercial confidence have increased, and with the sale of merchandise, faith in the paper which represents its value has gained strength among the purchasers of produce. The individual promise of the buyer of goods has thus become the medium of payment for other purchases in distant regions, and the promise of an individual merchant has been received where that of a corporation would be rejected. The commercial principle thus developed, has gradually, in the scale of government, assumed a more potent voice, supplanting the old feudal military predominance of the aristocratic classes, and these have sought in general commotion the means of retarding the progress of the material interests of the masses of the people, because in that progress the ultimate inevitable destruction of all those privileges and distinctions which militate against the welfare of industry by detracting from its reward, is clearly recognizable. As the commercial principle has developed itself, the precious metals have lost much of their importance, and they have therefore accumulated to an unprecedented extent in the great reservoirs of money, as the banks of Austria, France, England, and the United States. The returns of all these institutions show by analysis, that precisely in those years when prosperity is the most apparent and the amount of business done, or in other words, the quantities of the products of industry interchanged the most considerable, the idle accumulation of specie in the bank vaults has been the greatest. This results from the fact that international trade to be healthy, is of necessity one of barter, and the more extensive it is, the less occasion there is for specie. In illustration of this position we may turn to the commercial trade as connected with banking in the city of New-Orleans. It will be found that the influx of produce from the "great valley," as well as the foreign exports, have yearly increased in value as the bank loans have become more moderate, and the specie in the vaults greater in amount. This is indicated in the following table: VALUE OF PRODUCE RECEIVED AT NEW ORLEANS, of FOREIGN EXPORT-IMPORTS OF SPECIE THE AMOUNT OF BANK LOANS, AND THE SPECIE IN THE BANK VAULTS. 1840. 1842. 1843.. Total rec'ts. exports. & for. exp'ts. -...32 998,059... Imports of Banks. Loans. Circulation. Specie. ...41,711,214...6,443,788...3,163,243 ...48,101,210...1,979,039...1,504,661 45,716,045...27.427,422... 73,143,467.. 53.72,054...26.653,924... 80,381,978....10,407,371...31,695,439...1,248.652...5,858.857 1844... 65,863.866...29.443,734... 95.306,600... 7,727,323... 5,180,230...3,023,378...9,91,052 1845 57,193,122...25,841,311... 83,040,433... 2,249.138... 6,180,230...2,556.891...6,162.080 77,193,464...30,747,533....107,940,997... 1,872.071... 8,130,240...4,213 318...6,657,622 90,033,256...41,788,303....131,821-559... 6,680,050... 8,400,699...3,709,053...7.578,510 1848.... 79,779,151...39,348,722...119,127,873... 1,845,808... 6,232,359...3,963,689...7,590,655 1846.. 1847. In the years prior to 1842, there were 16 banks in New Orleans, with affairs so extended that it was impossible for them to resume payments. Their loans had been made not in aid of commerce, but to facilitate speculations which had proved disastrous. The question of resumption was much discussed, and it was freely asserted that, if the banks called in their loans and withdrew their notes from circulation, there would be "no money." This was a bugbear held out to frighten the advocates of specie payments. The evils of a depreciated paper currency became, however, so apparent, that resumption in November, 1842, could no longer be avoided. The result was as indicated in the figures, viz. a return of paper for specie, leaving but a small amount of bank notes in the hands of the public, and but little specie in the vaults. The consequence was, that 10 banks were unable to continue their payments, while six have done so, observing a restrictive movement, up to the present time. Now it will be observed that the receipts of produce at New-Orleans, and the value of that portion exported abroad in 1848, together, are nearly double the amount for 1842; yet the loans of the banks are this year equal to only one-eighth of the amount due them in 1842, and the amount of specie they hold is more than double that of the - bills out-standing. Now, we are further to take into consideration the fact, that the business of New-Orleans flows in from many states, all of which had large "bank accommodation" during the general suspension, as for instance, Louisiana, Missouri, Mississippi and Arkansas together, had bank loans amounting to $111,467,641, and the active loans in all those states together now reach $8,493,710 only; yet we have seen above that the value of their products arriving at New-Orleans has doubled, while the specie lying in the bank vaults has swollen to the sum of the loans. In these facts, we have the clearest evidence of the unimportance of bank credits to commercial prosperity. It may be stated, as explanatory of the above table, that the foreign exports, or portions of produce sent to foreign countries, is the same produce that is received by the river, but it passes into other hands, and becomes the basis of distinct business operations, and moreover does not include the exports from New Orleans to other states; as, for instance, the exports from New Orleans for the year ending with June, amounted to $67,182,323, of which $39,348,722, as above, was to foreign countries, and $27,833,601 coastwise. In relation to the bank loans, it is to be remarked, that the figures indicate only the regular business notes. The same institutions have loaned near $17,084,516 on mortgages, stocks, real estate, &c., being of the nature of loan office operations rather than of commercial banking. The features indicated in the New-Orleans banks are also common to all commercial institutions, as seen in the following table: SPECIE IN CERTAIN BANKS. England. France. Jan. 1842. 44 1843. 66 1844. 1845. 1846.. 66 1847. Oct. 1847. Ap'l.1848 Jan. 1848.. Ohio. New-York. N. Orleans. S. Car. Total. 26,010,000...41,230,000...4,074,601...1,741,526...857,649...1,018,611... 74,931,787 54,665,000...43,182,000...6,174,317...4,586,737...817,131.. 524,076...126,405,820 81,610,000...52,600,220..10,206,542...9,918,052...973,318....774,689...156,976 056 70,920,000...48,965,048...6,893,236...8,138,987...901,176....819,100...136,627,545 65,172,200...47,250.100...8,361,383...6,558,974...830,760...1,374,593...129,548,010 72,130,240...14,913,967...9,191,254...6,345,316...643,841...2,026,551...105,251,167 43,900,416...17,732,810...7,418,923...6,192,376...860,435...2,604,446... 74,710,951 70,851,912...16,643.536...6,722,326...8,235,274...571,502...2,590,130...105,814,680 65,371,820...36,182,734...6,751,338...7,599,655...358,111...2,681,471...119,236,132 We have here the most extraordinary fluctuations. The largest amount held by all the banks was in 1844, and that was a year of general prosperity. The amount of specie then in the institutions being large, a less quantity was of course in circulation. In October, 1847, however, after the disastrous failures and loss of confidence in England, specie became in demand for use, and it left the bank vaults. It would seem, so far from an increase of commercial transactions requiring an increase of coin, as those would teach who hold that there is not specie enough in the world to transact the business without the aid of bank paper, that actually the increase of business throws specie out of employment. From 1842 to 1844, the specie at these four points increased $82,000,000, coming out of the channels of circulation when business was active, commodities plenty, and their interchange by means of individual notes and bills of exchange unchecked by distrust. In 1846, the failure of harvests, by taking away one description of commodity, caused a demand for the precious metals for an extraordinary purpose, and the Bank of France underwent a drain so severe as to cause it to borrow £4,000,000 specie of the Bank of England. The continuance of this drain, arising from the same causes, brought the Bank of England nearly to ruin in October last. The reason of this was not so much the want of specie for the purposes of trade, as because distrust had fallen upon individual bills, and everybody, in all countries, wanted specie only. As the engagements outstanding were completed, and no new ones entered into, the demand for specie became less and less, and it continually returned to the bank, until the amount on hand is as large as at the moment of the greatest confidence. Thus a stagnation of business, |