During the political revulsions the discounts of the institutions on the continent ran to a very low figure. Their chief business was in dealings with the government. Since that epoch they have struggled for specie, and have succeeded in obtaining considerable amounts, as indicated in the following table:

The other banks have made more or less progress in the same direction. The Austrian government owed the bank $30,000,000, in addition to $16,000,000 turned over to it from the Sardinian indemnity. The new Austrian loan will draw specie from western Europe to strengthen the bank. In Belgium a new bank, of $5,000,000 capital, has been authorized to supersede the Bank of Belgium and the Society Bank as banks of discount. It is apparent that throughout Europe the disturbance of the currency is nearly the same as in the United States after the general suspension, and when all the banks were struggling to strengthen themselves. In that state of affairs the main cause of the specie de mand is to be found.

These unusual circumstances of the English markets and the European currency are the chief causes of the apparent balance against the country.

There is no doubt but that the great decline which has taken place in most imported produce in England since January last, has crippled many houses connected with this country, and that in consequence considerable sums, which have been long employed on this side, have been sent back. This fact, added to the large European and Indian demand for specie, has aided the efflux of coin. The imports into the country have been large, doubtless, and may be estimated for the last fiscal year at $200,000,000; that is to say, an import of $155,427,936 in 1850 gave, in round numbers, $40,000,000 of duties. The duties of 1851 have been $51,627,617; from this, however, the expense of collection, about $4,000,000, must be deducted; consequently, at the same average, the imports are $200,000,000-an increase of $45,000,000; but the exports have been greater. Thus the New-Orleans Price Current gives the average value of cotton at that place at $50 per bale for the year; and as its estimates for former years have corresponded with those of the official reports, we may assume them

to be correct. The exports, as compared with last year, will then run nearly thus:

The exports of New-Orleans and New-York for a series of years have been as follows, according to official figures:

Thus, allowing for all the other ports of the Union, no more than the export of the last year, the aggregate exceeds $204,000,000-a sum more than sufficient to counterbalance our actual imports; but the probabilities are that, as usual, the exports from other cities have increased in a similar ratio.

The exports of breadstuffs may be underrated for 1851, since to Great Britain alone the exports of flour has been 1,100,000 bbls. more than last year. The coin exports are placed at $32,000,000; from New-York alone they were $28,000,000. On this estimate the exports are $58,000,000 more than last year, against an increase of 45,000,000 only in imports. There is no disastrous ad. verse balance, even although produce may have paid no profit. This is very far from being a parallel for the years 1836 and 1839. The imports and exports of the three years ending with 1836 compare with the three years now just closed as follows:

A moderate profit of 5 per cent., including freights, would give us now a large balance in our favor, while in the former period the open London credits and United States' bank agency suffice to cover large importations that were never paid for at all. Nothing of this kind now exists.

Nevertheless, during the quarter ending with September, the stringency in the money market of the Atlantic cities has been very severe, and for the first time since the fall of 1847.

Here was an unchecked average increase of loans of one million per month for more than 30 months.

In the June quarter, that is, during the spring business for the last year, although the export of specie was large, the increase of loans was greater than during the corresponding quarter of the previous year, and reached $3,877,442 or in round numbers, four millions more money was loaned by the banks than they received; money was, of course, very abundant. In the September quarter, for the first time in four years, the banks decreased their loans 10 per cent., or $6,510,392. This amount of money the merchants were in three months compelled to realize from their business, and from country payments. In the spring quarter the banks not only discounted as much as was necessary to meet maturing paper, but nearly four millions in addition. In the last quarter they have discounted 6,500,000 less than the accruing payments. These two sums make together a difference of 10,500,000 in the supply of money upon the NewYork market. That is to say, between the abundance of the spring and the extreme pressure of the fall.

It is a remarkable fact, however, that only the old banks have curtailed. Thus, there are thirty-nine banks in New-York city, of which eleven have been organized in the year. The former have reduced their discounts 15 per cent., and the latter have increased theirs 40 per cent., showing that a general demand for specie was not the cause of the pressure as has been alledged, since such a cause would have affected all alike. The main cause was a financical war among the country banks, which caused a withdrawal of balances from the old banks involving a corresponding curtailment by them.

It is a matter of congratulation that the merchants of New-York were able so promptly to find and pay back to the banks this 6,500,000, comparatively, without any stoppages. It is an evidence of the soundness as yet of general business. The deposites in the banks have in the same time decreased many millions, and this, in some quarters, has been supposed to be a withdrawal of private funds from banks for employment in the purchase of paper, thus compensating for the bank stringency. This view we take to be a mistaken one. Thus, the bank deposites in June were $41,138,757, having increased with the discounts pari passu since 1848, when they were but $20,000,000; certainly individuals do not allow any such amount of money to lie idle. The "deposites" in the bank re

turns are but another name for discounts, and have no real existence as available funds. Thus, if a note approaches maturity at any institution, the maker offers for discount usually, some other paper for discount. When that is "done" the amount passes to his credit and is a "deposite" until it is checked against to pay the matured note which was a "discount." Thus both deposite and discount disappear together from the bank books; it is only two credits cancelled by the same transaction, no money having appeared in the matter at all. If, as has been the case in the last quarter, the banks refuse to discount to furnish the means of taking up the note falling due, it must be procured from other sources-forced sales of goods or stocks, borrowing on mortgage at enormous rates, enriching the holder of money at the expense of those who have promised to deliver it.

The season of the year is now approaching when the diminished imports and enhanced exports will reverse fears of foreign demand for coin, and the banks will probably resume their expansive progress, more particularly that, the new banks, of which there are sixteen, the Knickerbocker and the Grocers' having commenced, will compete for business. These banks will encourage dealers to borrow, that is, they will, in the stock-market phrase, induce them to sell money short; to promise to deliver to the banks at a future day what they have now not got, and when that day arrives, the banks will refuse to furnish the money for delivery, and the merchants will be again cornered, many of them ruined. It depends, therefore, upon the merchants themselves whether they will have a revulsion. If they promise to deliver too much money, they will inevitably be caught. The banks play a blind game; although they make and unmake fortunes in a day, their operations are secret. Like the Inquisition, they spread their secret machinations round the victim, and he writhes upon the rack, without daring to murmur or to betray the hand which tortures him. The temptation which lures dealers within the power of these financial Torquemadas is the ambition to do a large business to induce purchases by granting liberal credits. The inevitable fate of these toads, which endeavor to swell themselves to the size of oxen, is to burst. Family emulation in extravagant living, goads on to ruin a weak-minded man, who is supposed to be "smart" until known to be a fool. The smile of contempt and the sneers of rivals accompany his fall, and his name and place are forgotten in a week.

The business of New-York city with the interior of this state, will, this winter, be on a footing entirely different from that of any former year. In the first place, as soon as the canal navigation shall have closed, the expenditure of the $1,000,000, already negotiated, of the nine millions loan, will commence, and probably $4,000,000 will be expended during the season. The effect of such an expenditure on the line of the canal will be, as usual in such cases, to promote business in that quarter, creating a demand for goods and produce, and facilitating the remittances to the city. For access to the city, there are now two great lines of railroads, viz.: the Northern, from Buffalo through Troythe Hudson River road being now open to the heart of the city; and the Erie railroad, from Dunkirk to the centre of the metropolis. These two routes, each about 500 miles long, traverse the state longitudinally, and drain it of its produce north and south, to concentrate it in the city, while they draw thence supplies to distribute in return through the whole vast region of the northern

and southern tiers of counties. Lateral connections are being constantly formed by rail and plank roads, and each day adds to the area which communicates with the city. New sources of produce, and new markets for goods, are opened as soon as a new tract of land becomes accessible.

The northern line of roads will, this winter, not only be put in connection with the city, by means of the Hudson River road, but they will be permitted to carry freight free of canal tolls henceforth, the shameful law imposing those tolls being repealed. Our citizens are to realize the fact, that Albany, instead of being cut off from the city during the season of frost, is now not only within four hours of it the year round, but that it is also in connection with Buffalo on favorable terms; and New-York city has two rival and parallel routes, of 500 miles each, by which to reach Lake Erie during the whole year. These two routes cost $46,000,000, and will more than pay for themselves, in the collateral influences, in one year.

An instance of the benefits of railroad travel for business men, is manifest in the fact, that on a late occasion the writer of this left New-York at 7 A. M., in the Hudson train, reached Albany (143 miles) in four hours; remained 24 hours, and made the passage back in three and a half hours, passing the steamer Oregon (which left Albany at 7 A. M.) at Sing Sing, and arriving an hour before her, thus travelling double the distance in three and a half hours less time than a crack steamer.

Among the most extraordinary indications of agricultural prosperity are the returns of produce at New-Orleans, for the year ending August 31, 1851, which has been a year of low prices for farm produce generally. In the year 1846, the value of produce arriving at New-Orleans, via the river, reached $77,193,464, which was the highest figure it had then ever reached. Since then the progress has been, distinguishing the leading heads of articles, as follows:

Total......... -77,193,354......81,986,692......66,897,873.....106,924,083 Observe the continually increased value in the aggregate, notwithstanding that prices, under the large supply, in some cases have declined. Sugar and molasses are 25 per cent. more, tobacco nearly double, and cotton has increased 50 per cent. in value, affording a rich reward to planters, and laying the foundation of a sound general trade. Cotton has, indeed, borne a very good price in the last two years, and manufacturers, at home and abroad, have been compelled to pay roundly for it. If we take the quantities of cotton exported from the United States per official reports, and reduce the pounds to bales of 400 pounds, we shall arrive at an annual average export value per bale, per custom house reports for the whole Union. The following are the results of such a table for several years: