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modification of the tariff it is supposed years. The department has, indeed, will make an addition of $5,534,057 to power to buy it in the market at the the revenue, and reduce the deficit to market price, which is of course al$14,086,406. This deficit, the Secre- ways the value of principal as well as tary remarks, must be provided for the interest, which the government ineither by stock loans, treasury notes, judiciously contracted to pay for twenty direct taxation, or excises; and he asks years. Had the debt as it existed in 1843 for power to contract a debt, payable remained unchanged in its character, in 'a term of years, or to issue treasury the accumulation of surplus occasioned notes at par, and the interest not to in 1843-4 by the reaction of the almost exceed six per cent. The grant of the embargo on imports created by the tariff authority to issue either stock or trea- in the first year of its action, would sury notes at the discretion of the de- gradually have retired the outstanding partment may not, under the circum- notes, and neither surplus nor debt stances, be amiss; but it is not so clear would now have existed. A similar that any contingency can arise that will juncture now presents itself. The Secmake stock payable in a term of years retary wants for the coming year an more advantageous to the public in- addition of 19 millions to his revenue, terest than treasury notes. The report to meet what is assumed to be a temremarks: “ The same power that is now porary outlay; at the same time he given by law to redeem the loan, even proposes a permanent modification of before its maturity, whenever the funds the tariff, which, in connexion with the of the government will permit, so as to modification of the English corn-laws, liquidate any public debt as speedily as cannot in the present state of commerpossible, should be continued.” The cial affairs but have a very salutary fact of the existence of a surplus of 13 effect upon business, and greatly immillions of dollars to the credit of the prove the regular revenues of the gove treasury for more than two years, and ernment. The proposed tariff, aided loaned to banks and brokers without in- by the warehousing system, cannot but terest, contemporaneously with the ex add largely to the permanent revenues; istence of an outstanding debt of some and when, as it is hoped will speedily $17,000,000 on which the government be the case, the expenditure returns to is paying six per cent., is pretty con the peace establishment, a surplus must clusive evidence that the “power" al- rapidly accumulate. In such a case, luded to by the Secretary is not very why should the government be comavailable. The government has in fact pelled for a series of years to continue paid $600,000 per annum during the paying interest on a stock debt, that the last two years for money to loan to money may be loaned to banks without banks; and this instance of a most pro- interest? --a repetition of the profligacy fligate want of economy in the treasury of the enactrnent of 1843! It is true, department was occasioned by the sup- that it has occurred that the treasury posed utility of funding $7,000,000 of notes of the government bearing six treasury note that were doubtless of per cent. have been at a discount in the considerable service to the commercial market, and it is clearly unjust at such public, into a five per cent. stock for a time to require the public creditor to 20 years. The government took from take them at par: but when treasury the mercantile public a useful species notes were unsaleable at par, United of paper, redeemable within the year, States six per cent. stock was not to be and gave in exchange to brokers and negotiated at any price. Mr. Tyler's bankers a stock not redeemable in 20 agent failing to get a loan here, hawked years. The great error of this opera- them all over Europe, and still without tion was that it was done by the same

Were such a contingency to Congress that imposed the present ta- arise, it were far better to allow to the riff. They alleged that the high duties creditor of the government the market levied by that tariff were necessary to rate of discount on the notes paid him, increase the revenue, in order to dis- than to engage to pay interest for 20 charge the public debt; and at the same years to third parties. It is not at all time they took from that debt its fea- probable, scarcely within the range of ture of redemption within the year, possibility, that treasury notes can fall and made it irredeemable within 20 to a discount under a modified tariff.


When the treasury notes of the federal standing debt would be encountered for government were at a discount in 1842, a long season. The quantity of treasury the whole customs revenues of the notes that may be kept afloat will be government for the year were but greatly enhanced by the operation of $18,000,000, and the treasury notes the Independent Treasury, which will outstanding amounted to $10,093,426. restrain, to a great degree, the swindling It is pretty evident, notwithstanding banking system that now frequently that the notes were receivable for cus fills the channels of exchange with a toms, that at a time when business was baseless and spurious paper, alike inslack and money tight, there was not jurious to the operators and the public. sufficient demand for the notes to pay Among the changes proposed in the government dues to sustain them at tariff by the Secretary, is the imposipar, and the stagnation of internal busi- tion of taxes on tea and coffee, heretofore ness diminished the demand for the free. Those duties are alluded to as notes in the operations of exchange. As “war measures." It is certainly dethe matter now stands, the Secretary sirable that, if sufficient revenue can be proposes to raise the revenue from cus- derived from low duties on all other toms to $30,034,057 per annum, by re- articles, that tea and coffee should be ducing the rates; if, therefore, he exempt; but we are far from subscribshould issue in treasury potes the whole ing to the soundness of that policy amount of his estimated, deficit say, in which taxes sugar 100 per cent., and round numbers, 20 millions, the amount allows tea and coffee, its accompanyoutstanding would be no more dispro- ments, to go free, on pretence that a tax portionate to the revenues of the coun- is removed from the necessaries of the try than they were in 1842; and if poorer classes. The absurdity of the during the year the war expenditure plea becomes evident if we turn to the should cease, the same cause would treasury reports, and observe the quanprobably, by stimulating trade, still far- tities of each consumed and the amount ther enhance the customs and absorb of duties paid by each. Tea and coffee the notes, thereby extinguishing the are imported altogether-none is pro- . debt by its own operation, speedily and duced in this country. Of sugar about with little cost. If, on the other hand, twice as much is produced as is imthe debt should be contracted, to avoid a ported, and the price of the whole mass temporary inconvenience, on a term of is raised to the extent of the duty.years, the double inconvenience of a The following quantities of the three surplus on hand and an extensive out- articles were imported in 1845 :

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The quantity of sugar raised in this disturbed, and serious calamities have country amounts to 200,000,000 pounds, overtaken the large class of dealers in and the price is advanced $5,000,000 by agricultural produce, the war and its the duty: hence, laying a duty of 20 per consequent expenditures have as yet cent. upon all these articles will dimin- had but little agency in producing the ish the actual tax to the consumers difficulties. In fact, it may be a ques$3,000,000; or, differently stated, in tion whether the expenditure by the average families 7 lbs. of sugar is used, government of the surplus on hand, and with 2 lbs. coffee and i lb. tea per week; its consequent withdrawal from governthe tax on the sugar is now 17 cents: ment banks and dispersion in the geneif the tax upon all three articles were ral markets, will not have a better effect 20 per cent., it would amount on the than to allow the money to continue the whole to 144 cents, or the consumers instrument of alternate oppression and would pay 3: cents per week less than undue speculation, which it has been they now pay.

during the last two years. The first Thus far, although the money and effect of the hostilities at New-Orleans, produce markets have been greatly was to shake credit and paralyse bill

operations. Soma few failures took become considerably depreciated, the place, and the rest tions of the banks banks themselves became buyers, and produced both ina lity and disinclina the rates rose. The course of the tion to purchase ills, and they fell operation is seen in the following table rapidly to low points. When they had of rates of bills :

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The purchases of the banks are most gave an impetus to the movement and ly 60 days bills, and at one time their agitators produced a strong belief in the northern credits reached $4,000,000 in deficiency of the English crops of grain. addition to the government credits Excitement ran high, being fostered by drawing money from the deposit banks political agitators until it reached nearly for expenditure at the south.


a panic, and drove the first Minister of banks bought thus largely at the low the Crown into proposing the removal rates and checked at par, realizing large of duties. The fears in relation to the profits from the difficulties they helped crop seem to have most seriously preto create. When the institutions again vailed from August to November, became sellers, the market was eased during and immediately succeeding the considerably there. The chief difficulty harvest. Prices under this influence which has disturbed in the markets has appear to have reached their highest grown out of the great fall in produce, point in the first week in November. consequent upon the disappointment in As an indication of the state of affairs, relation to the large crops in England, we compile from official returns the and the enormous supplies which the following statement of the price of grain high speculative prices of last fall sent on the 5th of each month, the quantity forward to market. The progress of imported and duty paid, the rate of duty popular opiniou in England in relation as governed by the six weeks average, to the removal of duties upon corn has and the quantity of wheat and of wheat been slow but effective; and last fall the flour remaining in bond on the 5th of failure of the crop of potatoes in Ireland each month.



Wheat, Duty

In bond.
per qr.
Wheat Imp. Duty per Wheat

paid qr.


cwt. 1844 October.... 46

85,212. 28,903....20....366,105.. 296,916 1844 November....45 4..... 26,386. .18,092....20.... 363,372, 271,228 1844 December....45 6.. 22,242. 11,916....20....364,278. 265,622 1845 January. ......45 8..

19,679......16,330....20....362 150......262,691 1845 February. 45 5... 3,449. 18,824....20....344,668. 265,967 1845 March.... 45 0..... 6,326, .14,859....20....331,133. .257,372 1815 April. 46 5...... 3,721. .13,038.... 26....311,025. ..243,551 • 1845 May.

46 0...... 2,217. 6,478....20....298,327. 238,825 1845 June.


55,374. 5,081.... 02....320,281...... 233,015 1845 July....

..47 11

70,210.. 8,169....20....365,649. .226,605 1845 August .......53 3..... 60,465. .... 6,269....20....412,736.. ...224,632 1845 September... 55 10...... 49,554.... 5,376....17....445,082.. 222, 292 1845 October......56 0......117,348...... . 20,907....18....524,803......240,048 1845 November...,60 1......150,382. 1,631....15....667,773...... 280,171 1845 December....59 0......153,243.. ..17,644....14...,794,253, ..404,106 1846 Febrnary.....54 3.

....15..1,061,781......686,813 1846 May.. ........ 55 6.....

16..1,339,955. .1,119,427

From October, 1844, to the first November a rapid rise took place, and the week in July, 1845, the price of grain duty fell 6s per quarter from the 5th of remained remarkably steady as did the August to the 5th of December. At quantities taken out of bond and those that time the conviction began to spread remaining in bond. From August to itself that the harvest was not so short

as had been supposed. The potatoe marketable article, and when they lose crop of Ireland was indeed short, and a its proceeds on their own patch of land fearful calamity it is, because the cul- their case is indeed deplorable. The tivators of those blighted crops have not excitement which prevailed in England where with to purchase other food. was rapidly imparted to this country, The citizens of that impoverished and and the most sanguine expectations oppressed land have no reserve property of inordinant prices for all descriptions in any shape which they can make of food were entertained here, and their available for the purchase of food influence upon prices is seen as follows: Their labor is scarcely ever





But ter,
W. D.



October 1.......
November 5...
December 6...
January 7...
March 4.......
April 4..
May 4..
June 1.
June 12.


Pork, Beef,
W.C. Corn. Wheat.

.84 621....0 57....100....14 00....900......08}

6 25 ....0 70....1 35....14 00....7 75......0 81.
7 00 ....0 85....1 40....13 87}...8 25. ...0 81
5 75 ....0 72....1 40....13 25 ...8 50......0 8!
5 50 ....0 68....1 25....11 50 ...8 50......0 61.
5 50 ....0 70....1 26....11 25 ...850......07
4 621....0 68....l 10....10 75 ...8 25......07
4 50 ....0 68....0 90....10 75 ...7 50......07
4 00 ...,0 57....0 87}...10 50 ...6 75......0 6.

.17 17 15




As usual, under the influence of ex- navigation, all the avenues of trade were citement speculations were entered into, filled with produce on its way to the and the farmers and producers were seaports. As compared with last year, relieved of large quantities at high prices. the exports of flour, corn and wheat The anticipated demand did not, how- from the port of New-York have been ever, take place, and up to the close of as follows:


1846. Flour. Corn. Wheat. Flour. Corn. Wheat. January.. .bbls. 13,316 bush, 13,370

bbls. 69,613 bush. 112,607 bush. 46,591 February.



9,276 March.



10,581 25,913 April.. 17,122 20,084 busb. 1,600


17,444 64,339 May.



9:2,756 51,053 June..

to 16th 58,003

74,569 85,818

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This represents an increase of near The real and prospective abundance of $2,000,000 in the value of these three food in England in the face of the vast articles exported from the port of New- supplies that reach tide-water in the York, but there have been large losses United States, has made the condition sustained on it as well as on other pro- of the buyers and holders any thing but duce; and on the 5th of May there enviable. The quantity of four weighed was in bond in England five times as at Rochester, New-York, from the much wheat as at the same date in the opening of navigation to June 15, and previous year, and four times as much that received at New-Orleans from four, with every prospect at that early September 1st to June 15th, was as period of the year of a good harvest. follows:

At Rochester..
At New Orleans...

1845. ..bbls. 392,668.


1846. 592,692. .716,171.


The increase at these two points is at the same period last year. The nearly 100 per cent., it appears. The continual decline in prices has uncovreceipts at New-York down the river ered a large amount of acceptances are 600,000 bbls. against 400,000 bbls. drawn on city houses against produce

generally, and the reclamations on orders for foreign goods are understood millers, banks and forwarders have been to be very limited; and the state of exlarge, involving failures in alınost every changes at this season of the year, stage of the transaction. For the gen- when they usually rise and become eral business of the country it is perhaps firm, is an indication that such is the fortunate that the producers of the crops, fact. The rate of sterling for the packet who are in general the consumers of of the 1st of July last year was 93 a 10, goods, obtained fair prices for their and this year dull, 7. a 84. The scarcity produce, and so far the basis of general of money may, to some extent, have trade is sound. In looking forward, affected prices this year, but as a genehowever, to the fall trade, we observe ral thing the demand has been less than in all directions a great accumulation of the supply, more so than is usually the stocks without any very good prospects case at this season. The state of the marof such a demand as shall advance kets abroad are such as might promise prices. It is the case, indeed, that improvement but for the distrust which when wheat and wheat-flour falls so hangs over the railway movement.low more of it is consumed. The east. The desire for railway speculations apern manufacturers use more wheat and pears to be still good; in fact, all those less rye and Indian, and it enters more who possessed shares when the bubble into general consumption abroad. burst are naturally anxious to become

There is no doubt but that the foreign relieved of the burden; as they are a demand will be fair to good; but the numerous and influential class, the proexport must be large to relieve the mar babilities are they may succeed in again kets and allow the new crops to open producing a speculation. The number at remunerative prices to the farmers; of newly-authorized roads is such as at the present rates for general produce to require an incredible outlay of money, no considerable profits can be realized perhaps $300,000,000; a sum too large by the farming interest, and a decline to transfer from one employment to in their profits is certain to be followed another in a short space of time withby a languid fall and winter trade. The out producing great embarrassment.


Memoirs of the Administration of Wash- and wisest men were anxious only to con

ington and John Adams. Edited from struct a government to hand down to posthe papers of Oliver Wolcott, Secretary terity free from the objections that had of the Treasury. By George Gibbs. manifested themselves in others, there was 2 vols. New-York.

naturally a great indisposition in many

quarters to embark in one altogether new. The two volumes before us form a very 'There were also a great number who, from valuable contribution to the history of the honest conviction, distrusted the ability of times, when the conflicting elements of re the people to absolutely govern them. sistance having successfully severed this selves ; men who supposed that society mighty continent from the domination of should be divided into classes, with speEurope, were just crystalizing as it were cial privileges to the higher ranks, in order into the pure imstitutions that have now to ensure iis well-being and the preservabecome consolidated by time. At a time tion of that order without which the comwhen everything was unadjusted, when monwealth could not prosper. and that a theories were to be reduced to practice, strong federal government with its powerwhen among the multitudinous forms of ful patronage and splendid machinery government of which the world had pre- could alone effect it. It was but natural viously exhibited the working, the mon that such opinions should be entertained, archy of England had up to that time best because the world had given no example stood the test of practice; when the best of an absolute political equality among

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