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such as has been advantageously practised in Scotland, would be a better system. An act was passed, allowing any association to carry on the business, but still under restrictions nearly the same as in the chartered bodies. The securities for their enforcement, however, were much less stringent. No sufficient provision was made for the paying up of the capital; and instead of the examinations every four months, half-yearly statements were to be sent by the bank itself, and published by the chancellor. On application, however, by creditors and shareholders, that officer might order a strict examination. The spirit of speculation was strongly displayed by the formation in six months of thirty-four new institutions, with a capital of 12,319,000 dollars, capable of being augmented to 487,680,000; some of them for 1000, and one for 4000 years. Mr Gallatin admits that several have been respectable, yet states the striking fact, that in two years and a half the bankruptcies had been more than twenty out of eighty; while in the chartered banks, during ten years, they had been only two out of ninety.

In Massachusetts, a bank with a capital of 500,000 dollars may issue bills to the amount of 625,000 dollars, and may have due to it on discounted paper 1,000,000, also in bills and other obligations, exclusive of deposits, 1,000,000. It is required to pay a state-tax of 5000 dollars, and to make, when required, at thirty days' notice, a loan of 50,000 at the low interest of five per cent. These two last conditions seem justly objected to as very onerous, and mixing up the concerns of the bank too much with those of government.*

Gallatin, p. 54-82. Hunt, No. xvii. p. 412.

CHAPTER VIII.

Foreign Commerce.

Agricultural Produce its chief Basis-Cotton-Tobacco-Grain -Animal Food - Timber - Fish - Manufactures - Foreign Goods-Imports-Trade with Britain-France-Other European Countries-British West Indies, &c.-Cuba-South America-East Indies-China-Progressive Extent-Shipbuilding-Tonnage-Navigation - Liners - Steam - Insurance - Ports : New York-Boston-Philadelphia-Baltimore -Charleston-New Orleans.

THE main basis of the foreign trade of the United States must, from causes already stated, be the produce of their soil. In 1839, while the total value of the exports was 103 millions of dollars, that of agricultural products amounted to 84 millions, being fully four-fifths. Cotton is by much the most important article, and from its infant state half a century ago, has advanced with gigantic strides, leaving every other far behind it. In 1790, the value exported was 48,285 dollars; in 1800, five millions; in 1810, fifteen millions ; in 1820, twentytwo millions; in 1830, thirty millions; in 1840, sixtyfour millions (above fourteen millions sterling). In 1839, all the agricultural products being 84,900,000, cotton was 61,200,000. Dr Channing characterizes it as "the great staple on which all the commercial dealings of the country turn. As our merchants and manufacturers cast their eyes southward, what do they see ? Cotton, cotton, nothing but cotton. This fills the whole horizon of the south."

By far the largest market for this immense mass of production is Great Britain. To her it affords the material of the greatest manufacture that ever existed, employing above 1,200,000 of her subjects, and supplying

to all quarters of the world a comfortable clothing at a cheaper rate than any other fabric. Of 1,876,000 bales exported in 1840, there went to Britain 1,246,000. A certain proportion is returned to America herself in a manufactured state. Through this commodity the interests of the two countries are so closely entwined, that a rupture could not take place without a most extensive derangement in the industry of both.

France takes off a quantity much inferior, yet large and always increasing. In 1804, it amounted to six millions of pounds; in 1821, to twenty-seven ; in 1830, to above seventy-five; in 1840, to 447,000 bales, which, at the average of 370 lbs. each, would be 165 millions. In 1834, the exports to Russia were 1,260,000 lbs. ; to Holland and Belgium, 6,096,000; to the Hanse Towns, 6,612,000 ; to Spain, 892,000 ; to Trieste, 3,805,000 ; to Italy and Malta, 190,000. In 1840, those to the north of Europe are stated at 103,000 bales, being about 38,110,000 1bs. ; to Spain and the Mediterranean, 78,000 bales, or about 28,960,000 lbs.

The shipping ports are New Orleans for Louisiana, Mississippi, and all the states on the river of that name; Mobile for Alabama; Savannah for Georgia; and Charleston for Carolina. The following estimate of the charges, exclusive of insurance, of conveying a bale weighing 420 lbs. from the planter's ground in Alabama by way of Mobile to Liverpool, is given in a respectable American publication:

Paid by planter for wharfage, weighing, draying,

and storage....

For factors' commissions..

For freight to city..

Paid by purchaser for brokerage, storage, drayage,

Dolls. Cents.

55

80

50

and wharfage..

55

For commission on purchase.....

80

For freight and primage.

64/

Paid by vessel for compressing, lighterage, stowage 1

30

Port charges at Liverpool ....

6

0

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The following is an estimate from Savannah, made on a different principle :—

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Rope mending and drayage per bale, 25 cents.
Freight d. per lb., and 5 per cent. primage.
Duty d. per lb., or 2s. lid. per 100 lbs.
Landing charges, 3s. per bale.

Brokerage in Liverpool, per cent.

The charges to Havre and Marseilles are nearly similar, except that the freight is only one cent. (d.) per lb., the landing charges, &c. 2 francs (20d.) per bale, the insurances only 11 and 11 per cent. The duty is 22 francs per 50 kilogrammes, or 122 lbs., being 13d. per lb.*

Tobacco ranks next to cotton, and indeed held the first place till the rise of this mighty rival. Down to the commencement of the revolutionary war, the exports continued increasing. During the ten years ending with 1709, the annual average was nearly 29,000,000 lbs.; between 1744 and 1766, it had risen to 40,000,000. In 1768-1770, it was 67,780,000; but in 1772-1775, had mounted to 99,374,000. The great contest which ensued not only gave a temporary interruption to the trade, but arrested its future advance. The countries of Europe, cut off from the usual supply, made efforts, in some degree successful, to raise it for themselves. Between 1815 and 1835, the amount exported was 82,760 hogsheads. This measure originally contained only 600 lbs. ; but through improved package, may now be estimated at 1200, which will give 99,313,000 lbs., coming surprisingly near to the average of the four years 1772-1775. The four last years of the period, however, show a considerable increase, as they average 93,000 hhds., or 111,600,000 lbs. This has been fully supported in the years 1837-1840, which have averaged 399,000 hhds., or 119,700,000 lbs. The

Hunt's Magazine, No. ix. p. 267; No. xi. p. 431; No. xviii. p. 557. American Almanac, 1837, p. 79.

average annual value for the last three years has been 9,032,000 dollars (£2,030,000).

This commodity, being still most abundantly produced in Virginia and Maryland, is of course shipped from the ports of those states, mostly from Richmond, Petersburg, Lynchburg, and Baltimore. All the produce of Kentucky, Tennessee, Ohio, and other western states, goes by New Orleans. The export thence in 1839-1840, was 28,028 hhds., being, however, little more than half that of Virginia, which amounted to 52,633. The former quantity, indeed, has not increased within the last ten years, having in 1830-1831 been 34,968 hhds. It has fluctuated greatly during that time, from 23,700 to 43,900. Great Britain, which, from motives of revenue, does not permit the culture within her own territory, affords the principal market. In the ten years ended 1840, she took off 282,721 hhds. Holland ranks also high, receiving 205,028. Although the plant is largely cultivated in Germany, yet her Hanse Towns have taken 234,403; but great part is probably forwarded to the north of Europe. France has made extraordinary efforts to promote this culture, which, between 1818 and 1820, rose from eighteen to thirty-two millions of pounds; yet still she has received in the above period 81,012 hhds. The export to all other countries is stated at 164,591. By another authority, these last appear to be in the order of their importance :-Gibraltar, Sweden, Spain, Italy, West Indies generally, Cuba, Portugal, Hayti, Africa, Brazil, Argentine republic, Mexico, Malta, &c. The internal consumption of this article is said to be very extraordinary, amounting, as compared with the population, to three times the quantity in Great Britain. The value is believed considerably to exceed two millions and a half sterling; it has even been asserted, though probably with exaggeration, that in New York more money is spent upon it than upon bread.*

American Almanac, 1838, p. 120, &c.; 1842, p. 108. Hunt, No. xvii. p. 451, &c.

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