the system receives from chartered interests, cannot proceed from an intelligent understanding of the true interests of a regular business. It proceeds more particularly from those whose designs are directed against the public, through the hope of getting into circulation large amounts of unsecured paper, in view of ultimate insolvency. Under these circumstances, it would seem to be the duty of the Pennsylvania and New Jersey Legislatures, where the demand for new charters is so rife, at once to pass a general law, requiring, in the former State, Pennsylvania Stocks to be deposited as security. As $5,000,000 of new capital are asked for, such a demand for the stocks of the State, would bring a considerable quantity from abroad, into the State, and by so much retain the interest at home, while bill-holders would be amply secured. The details of the shocking frauds recently exposed, would show the necessity for some mode of protecting the public. In New Jersey, where no State stocks exist, those of the Federal Government would form an absolute and necessary security. In Michigan, where few or no banks exist, and the stock of that State is small, a general law of such a character would probably cause all its stock to be brought within the borders of the State, and the dividends would remain within it, while an ample and sound currency would, with the increasing amounts of coin in the country, displace the circulation of irresponsible institutions.

The business of the fall usually ceases with the closing of the canals, which took place this year on the 5th of December. Of late, however, the use of the telegraph, and the increase of railway communication, has served to prolong transactions through the year; while, by means of the former, the city merchant can ascertain the home-standing of a country dealer, before his purchases are completed. So can that dealer order goods, and receive them by express, in almost any period of the year. The business, therefore, is now more distributed throughout the year, and there is no time when, as formerly, the dealer might say that his business is entirely quiet. The amount of dry goods entered at the port of New York, for the fall season, has this year been much larger than for the previous one, as follows:

Woolens. Cottons.

DRY GOODS IMPORTED INTO THE PORT OF NEW YORK, FROM JUNE 1st, to dec. 1st. Silks. Flax. Miscellaneous. Total. 6,808,872 3,400,133 7,262,288 2,058,375 1,223,473 20,753,146 374,190 548,000 272,553 125,473 26,41,476

Entered.

With. f'm Wareh. 1,321,860

Total, 1849.... $8,130,732 3,774,323 7,810,288 2,330,928 1,348,346 23,394,632 1848.... 5,884,873 4,118,906 6,056,745 2,009,852 1,472,949 19,543,325

This large importation has sold well, at constantly rising prices, and while the dull quarter finds smaller stocks on hand than usual, the prices are higher than at the commencement of the season. The generally good demand throughout the country, indicated in these facts, comprised as well an inquiry for merchandise of domestic origin, and both proceeded from the general state of prosperity arising from well sustained prices of raw produce, although this was sent to market in very considerable quantities. The position and prospects of cotton are flattering; for nearly a year, the market has been on the rise, under the weight of a large crop, influenced by an unusual demand for consumption, supported by rumors of

diminished production, and prices now range from 60 to 100 per cent over those current one year ago. This advance in the price of raw material, has naturally affected the cost of wrought fabrics, and improved the demands of manufactures, without adding much to their actual profits. These, between high rates for labor, and high prices for raw materials, cannot be large, without a material rise in the prices of goods, beyond what has taken place. The high rates of wages is a direct and necessary consequence of the general prosperity of the country, which finds employments for the many, more agreeable and lucrative than the drudgery of factory service. Nevertheless, it does not appear that the high price of cotton diminishes the quantity consumed; although it is a necessary law of trade, that high prices discourage consumption, yet its operation, or rather the fact of high prices, is always comparative. These prices for an article of general consumption, which, in a season of dear food, and scarcity of money in England, are high, are by no means so in a season where both these great elements are abundant and cheap. That is to say, where the ability to consume more, exists, the consequent demand is not checked by a money price for the thing desired somewhat higher than that of a previous and less prosperous year. This appears now to be the ease with cotton. The speculation which exists in that article, is, in some respects, similar to that which marked the year 1839. During the decade which has since elapsed, the article has undergone many and great vicissitudes. The crop of 1837-8, and 1838-9, compares with the last and the present, as follows:

The actual proportionate decline in the production of cotton in 1839, was much larger than the estimated decline this year. It may be serviceable to recur to the circumstances of the speculation, and its utter failure of the year 1839. The crop declined during the year ending with August, 1838. It had annually increased since 1832, and had exceeded that of the previous year, by 378,000 bales, or 25 per cent, and, as a consequence, had ruled lower, averaging 74 cents in Liverpool, throughout the year. For the thirteen previous years, there had been an uninterrupted annual increase in consumption, averaging 9 per cent per annum, and the purchases by the trade were very large, proportioned to the large crop. When, therefore, it became apparent that a decline of 25 per cent would take place in the production, the safety of speculating for a rise was supposed beyond question. There were, however, then in operation many elements fatal to the success of such an enterprise. In the first place, the large purchases by the trade in 1838, which were unusual for consumption, were taken by spinners as stock ahead. Thus, Messrs. Strutt, of Derbyshire, had, anticipating an advance in price, taken stock for three years ahead, at the rate of 10,000 bales per annum. The prevalence of this disposition, aided by the abundance of money, had swollen the apparent demand for consumption. With the spinners so well stocked, the English harvest of 1838 failed. At the same time, the state of affairs in the United States was very unsound. Prices of cotton, under the direct purchases of the late National Bank, which issued its bills of the old institution, had been forced unnaturally high, and in October, 1838, new fair to good fair, sold at 14 a 15 cents per pound. Such prices, even with a continued good demand, left a small margin for an advance. Nevertheless, the United States Bank, and all who com

manded credit, entered the market with avidity, and the Bank of England, notwithstanding rising prices for food, and a continued drain of the precious metals, continued to reduce the rate of interest, and thus facilitated the cotton movement. The following figures describe the movement from the close of the crop year 1838, to the reaction and ruin of 1839:

Now, although cotton had risen 50 per cent, wheat 12s. per quarter, and the specie diminished £2,500,000, the Bank of England in March, 1839, offered to reduce the rate of interest to 3 per cent on exchange bills, until April. This was followed by more adverse circumstances. The importation of food continued large, and the bullion in bank to sink, until the alarmed institution, in May, altered its course, and continued to advance the rate of interest, availing itself, for the first time, of the repeal of the usury laws, to raise the rate of interest above 5 per cent, a point that it had not previously attained since 1704. All was of no avail; the failure of the United States bank took place on the 9th October, 1839, and that of England in the following month, was prevented only by a loan from the Bank of France. Under these circumstances it was, that the great falling off in the production of cotton was more than countervailed by the high price of the raw material, the famine price of food, and the financial revulsion abroad, with the catastrophe of the late National Bank here. None of these circumstances attend the position of the great staple this year. The great relaxations that have taken place in the commercial policy of England, has greatly promoted the consumption of goods, attended as it has been by a removal of duties upon consumable articles, particularly cotton, a large railroad expenditure, and an abundant supply of cheap food. If we compare the state of affairs now, with that of 1839, we have the following results:

1838. 1849..

PRICES OF COTTON IN NEW YORK, OCTOBER 1ST, 1838, AND 1849.
Ordinary & mid.
10 a 13
9 a 10

Fair & good.

18 a 14

11 a 11

This being the state of prices in New York at the opening of both crops, the situation of things abroad is indicated as follows:

In addition to this actual state of affairs favoring a large consumption of goods this year, it is to be remembered that the corn trade has become regular, and the importation of even the large quantities that were made during the year ending with August, 1849, failed to disturb exchanges-that the Bank of England, which, in 1839 confessedly reduced the circulation, with the object of reducing the value of cotton, has, by its new charter, been shorn of that power, while the large railroad expenditure, and active employment, as well in England as in Western Europe, afford the means of a considerable consumption of goods. The circumstances recounted were mainly instrumental in reducing the consumption of cotton in England 30 per cent; but to attain this, it was requisite that prices in New York should rise to such rates as the following quotations in New York, May, 1839:

Ordinary a middling fair..
Fair a good fair.....

New Orleans.
14 a 15 c.
161 a 164

Mobile. 14 a 15 c. 161 a 16

These are 25 per cent higher than the present prices of the raw material, and the so-called high price now relatively to food and interest. It is the case, undoubtedly, that many of the spinners have large stocks of cotton, purchased with the abundant money, at the low prices of the past year, and also that many of the goods-markets have been well stocked; but it is also the case that the general ability to consume is great. As an indication of the views of the United States manufacturers, we may take a table of the purchasers for consumption:

Thus, with a price 50 to 80 per cent higher than last year, the United States manufacturers have taken 50 per cent more cotton this year than for the corresponding season last year. Under these circumstances, the prospect for sustained prices of the raw material, are better than usual; the demand for goods being such as to warrant the advance manifest in the raw materials.

It appears from the accounts of the Bank of France, that the cash in hand had increased by 2,000,000 francs in Paris, and decreased by 1,500,000f. in the departments. The commercial bills discounted have diminished by 4,500,000 francs. The protested bills have decreased by 130,000 francs. The bank notes in circulation have diminished by 5,250,000 francs in Paris, whilst they have increased in the departments by 750,000 francs. The balance to the credit of the treasury has increased by 5,750,000f., and the sundry credits have decreased by 5,500,000f.

COMMERCIAL STATISTICS.

PRODUCTION OF HOGS AND BEEF CATTLE IN OHIO.

We published a table, in the December number, 1849, of the Merchants' Magazine, showing the number and value of hogs and beef cattle, in fifty-nine counties, in the State of Ohio, as returned for taxation, by the township assessors, and equalized by the County Board, for the year 1848. From an official copy of the annual report of the Auditor of that State, and the Cincinnati Price Current, we are enabled to give the returns for the remaining twenty-seven counties, as follows:

Total...

1,886,263 $1,322,968 1,967,998 $2,444,312 1,017,143 $9,695,372 1,069,102 $10,292,840

New

THE FOREIGN DRY GOODS TRADE OF NEW YORK.* There are few persons who have any definite idea of the value of the dry goods which annually pass through our custom-house into the hands of consumers. York is called the commercial emporium of the country; but with many this term is treated as a complimentary cognomen, which has no significant application to our city, and to which we have no peculiar title, except through the courtesy which concedes it. Others suppose the commercial importance of New York consists in the huge warehouses which shadow a considerable portion of the city, as if piles of brick and mortar could create wealth. The true secret of our prosperity, apart from the manufacturing carried on within the borders of New York city, may be found in the constant stream of created value which passes through this channel, and is distributed far and wide over the country. It is not local or individual wealth which fills the warehouses and throngs the streets. Stagnant water breeds but the pestilence. It is the flowing stream which irrigates and fertilizes what would otherwise be a desert waste. So it is the constant flow of a nation's supplies, through the facilities here offered for trade, which supports half a million of people, and gives New York the first rank on this continent. We furnish receiving and distributing warehouses for the products of

From the Journal of Commerce.