COMMERCIAL CHRONICLE AND REVIEW. SATISFACTORY STATE OF COMMERCIAL AFFAIRS-OUR PREDICTIONS REALIZED-MONEY PLENTY-EASTERN RAILROAD BONDS-CORPORATE CAPITAL AND CHARTERS AUTHORIZED IN MASSACHUSETTS FROM 1835 TO 1848-BOSTON BANK DIVIDENDS FROM 1847 TO 1949-AGGREGATE CAPITAL AND DIVIDENDS OF BOSTON BANKS FOR LAST SEVEN YEARS-DIVIDENDS OF NEW YORK BANKS FROM 1845 TO 1849MERCHANTS' EXCHANGE BANK, BROADWAY BANK, AND BANK OF COMMERCE-INCREASE OF BANK CAPITAL-PRODUCE MARKET-IMPORT OF BREADSTUFFS INTO BOSTON-EXPORTS TO GREAT BRITAIN AND IRELAND ARRIVALS OF FLOUR AT BOSTON FROM 1845 TO 1849-EXPORTS OF UNITED STATES--SHIPBUILDING IN UNITED STATES-RATES OF FREIGHTS AT LIVERPOOL-INFLUENCE OF THE BRITISH NAVIGATION ACT, ETC., ETC. THE state of commercial affairs has remained satisfactory during the month, presenting, however, some anamolous features, which, in the main, mark the growing wealth of the country, as well as the sound state of business generally. In our number for January, 1849, page 79, we remarked as follows, money being then scarce, and the rate of discount high : "For the coming year, from various operating causes, money is, however, likely to be cheap; the more so that the report of the Secretary of the Treasury has presented a satisfactory state of the finances, and removed fears that were entertained in relation to further loans by the government. The means of the Treasury are now quite adequate to its wants, with every prospect that the actual receipts of the customs will overrun the estimates. The exports of the country are large, and will, in all probability, continue so, involving a return of the proceeds in dutiable goods that must swell the revenues." These views have been fully justified in the existing state of affairs. Since the opening of the spring business, money, as a general thing, has become, and continued, very abundant, and is probably, at this moment, more geneerally plenty, and cheaper, on loans "at call," than has been the case for many years, notwithstanding that a large and lucrative business has been done for the fall trade. As a general thing, the sales of produce throughout the country have been large, during the past year, and have been fairly remunerative. An enormous crop of cotton has sold, upon the whole, well, and farm produce has been maintained at remunerative rates, upon the Atlantic border, under supplies that have been seldom surpassed in extent. The reciprocal demand on the home manufacturers has been considerable. As a usual thing, the quantity of foreign goods imported equal that portion of the national produce exported, and all the vast sales of produce at home are paid for in domestic manufactures. The effect of the export of surplus produce is to sustain the price of that which is sold at home; consequently, the larger the export of farm produce, the more effective is the home demand for manufactured goods. This has been the case during the past season, and the ability of the country to pay up has been manifest in the increasing abundance of money in the Atlantic cities, New York in particular. The business of the port of New York has been more, by 50 per cent, than for the corresponding season of the previous year, and the amount of business paper created has been considerable. It is usually the case that the sales of each month are accounted for at its close, by notes running 30 days to 8 months; the month following that of the most active business presents the most considerable demand for discount. August and September were heavy months, yet, as the season drew to a close, the notes offering were readily taken up, while money seemed in private hands to fall in value, notwithstanding that confidence, generally speaking, improved in the business paper created by the fall trade. The Banks, strong in specie, discounted freely regular paper, at something less than legal rates. That running 2 to 3 months was done readily at 5 per cent, with two endorsements, and the risk of one only was paid for at 2 per cent higher. Auctioneer paper 8 per cent, and endorsed 7 per cent. The peculiar condition of the Boston market threw on the New York market not only the notes given by New Yorkers for goods purchased there, but also much local paper in addition to the obligations of railroads and corporations, which could not be placed in New England. The bonds of eastern and western railroads, and of western cities and counties given for subscriptions to railroads, are extremely abundant here, and if they may be considered safe, are the most profitable securities to be found. Six and seven per cent bonds of this description are selling, according to favor, at 80 up to 95 per cent. The 8 per cent bonds of the Michigan Central Railroad can be had at par, and have been sold lately to the extent of $300,000. The paper of eastern railroads, at 6 months, is also plenty here, in batches of any amount, at 12 per cent. We presume that not less than $3,000,000 of such securities, as above described, are pressing on this market at the present time. It is the case that the wonderful increase of corporate capital in those sections during the past few years, has exceeded the accumulation of capital applicable to permanent investments, and by so doing has much cramped the movements of general commerce. The following table indicates the number of railroad, manufacturing, and miscellaneous corporations, authorized of late years in Massachusetts: Total.. 404 $82,822,000 99 $38,037,000 122 $14,696,800 $135,555,800 This large demand for capital has had the effect of exhausting the surplus capital of that section, and of producing a permanent high price for money, against which merchants and dealers have to contend. The influence of this state of affairs upon demand for accommodation is perceptible in the table of bank dividends, which is as follows: Total............ 19,280,000 $620,000 $658,300 $702,800 $725,550 $736,800 740,550 This gives an increase of $3,750 for the dividends of the last 6 months, over those of the first for the present year. For a series of years the aggregate capiital and dividends of these banks have been as follows: This is a constant and regular increase in the ratio of profits earned by money employed in commercial banking in the emporium of New England, and indicates the increased burden which the merchants have been compelled to pay, in consequence of the continually increasing competition of corporations for money. Since 1843, the rate of money, so employed, has increased 90 per cent, that is to say 3 per cent per annum; and this is an important item deducted from the annual profits of those who procure discounts. The dividends of the banks of the city of New York have been as follows: DIVIDENDS OF THE NEW YORK BANKS FOR 1845-6-7-8-9. The first dividend of the Merchants' Exchange Bank, for 1849, was on its old capital of $750,000, under the charter which expired June 1st, when a final dividend of 85 cents per share was paid. The present capital is under the free banking law. The capital of the Bank of Commerce also increased $73,800. The Broadway Bank commenced business in July, on a capital of $600,000, one-half paid up. The capital on which the first semi-annual dividend was paid was $23,940,750, and the amount $991,494, being 4.14 per cent. On those which have declared second dividends, there has been no increase. The dividends of the New York banks appear to have been as follows: Years. Capital. Dividend. 1845.... $23,084,100 $1,433,901 P. cent P. cent Years. Capital. Dividend. per an. 6.21 1848.... $23,284,100 $1,883,971 8.09 7.09 1849. 24,457,890 1,982,988 8.28 1846.. 23,084,100 1,836,312 The aggregate dividends in Boston, in 1845, were, it appears, higher than in New York in that year. Since then, the increase of bank capital in Boston has been nearly $2,000,000, or 124 per cent, while that of New York has not much swollen in amount. The average figure which dividends have now reached, have prompted the creation of new banks; and, as we have seen, in the case of the Merchants' Exchange Bank, where confidence exists, the subscriptions are readily closed up. This enhanced bank profits is an indication of the activity of trade creating a demand for means on the part of the merchants, and showing, for the most part, a sound state of credits. The considerable importations of goods have sent the rate of sterling bills firmly to 10 premium, and some $300,000 gold to England, and an equal amount of silver has gone forward, as well as considerable United States Stock, as a remittance. The considerable sales of produce which have taken place in the past year have been the basis of that considerable trade which has progressed so favorably to the general interest. The coming year, dating from the realization of the crops, has a less favorable aspect, in some respects, in the North-western States, • Dividend paid May and November, † Dividend paid June and December. Dividend paid February and August. § Dividend paid April and October. | Dividend paid January and July. particularly Ohio, much damage has been done to the wheat crop, and this will probably effect local interests, inasmuch as the general supply is such in usual years, to prevent any considerable rise from a local failure. Hence the farmers of those sections are not compensated for a loss of a portion of the quantity, by a rise in the price of the remainder. They all, however, will have a most profitable yield of corn, and the market for this is likely to continue large. During the year ending with August last, the exports of this article, mostly to Great Britain, reached 12,729,626 bushels, worth $7,637,775; thus raising that article to the importance of the tobacco interest in the scale of exports. At the average rate of export in the last year, corn is a most profitable production, and a considerable market for it does more to promote the interests of farmers, in the new States, than probably that for any other one article of raw produce. The import of several articles of breadstuffs into Boston, for the year ending with August, have been as follows: Excess of import.. 820,322 901,002 2,156,747 2,427,840 272,895 403,442 The breadstuffs taken to Boston increases as the wants of the various manufacturing districts commanded by the net work of railroads that converge upon that city increase. This increase has not been large this year, as compared with the increased foreign demand for those articles. The export from the United States to Great Britain and Ireland, for the same period, was as follows: EXPORTS FROM THE UNITED STATES TO GREAT BRITAIN AND IRELAND. The arrivals of flour at Boston, from various quarters, were as follows: The deliveries upon the Western Railroad at Boston, are probably affected by the demand in the interior of Massachusetts, and at the cross railroads. The quantity that leaves Albany is constantly diminished by way deliveries, until it arrives at Boston. And without doubt the quantity that formerly left Boston for the interior is diminished by the supply coming in from Albany. The number of barrels which left the latter place in vessels for Boston, appears, by reason of lower freights, to have increased, while the railroad delivery was less. Both these channels of communication have, however, been supplanted by the shipments from New Orleans, favored by the considerable supplies at the latter place, and |