COMMERCIAL CHRONICLE AND REVIEW. INFLUENCE OF EVENTS IN EUROPE ON COMMERCE-IMPORT OF BREADSTUFFS INTO GREAT BRITAINPRICES OF GRAIN IN ENGLAND FROM 1845 To 1848-LEADING FEATURES OF THE BANK OF ENGLAND DISCOUNTS OF THE BANK OF ENGLAND FOUR LAST YEARS-STAGNANT STATE OF TRADE-EFFECTS ON SPECIE-INFLUENCE OF WAR ON COMMERCE-STATE OF TRADE IN THE UNITED STATES-RECEIPTS OF PRODUCE AT NEW ORLEANS-PRICES OF PRODUCE AT NEW ORLEANS-FOREIGN EXPORTS OF NEW ORLEANS-CONDITION OF THE SOUTH-WESTERN BANKS, ETC., ETC. It is now more than a year since untoward events in Europe have continued to exert an adverse influence upon the state of commerce in general. With most abundant natural wealth, the course of business in the United States has been checked by reason of the want of prompt means of making the surplus exported promptly applicable to the payment of goods purchased. The shock given to individual credits, through the influence of events in England last year, disturbed that confidence in exchange necessary to preserve for bills their character of an international currency, and called specie into activity, while a large amount of capital in produce remained in abeyance. The consequences of the bad harvest of 1846 were severely felt in the year 1847, and were scarcely ameliorated by the abundance of that year. Those effects, heightened by the political revulsions of Europe, have scarcely passed, when renewed deficits in the food grown upon the British Islands, threaten a return of the events of last year. It is a singular fact, that the import of foreign food into England last year was, from the commencement of a good harvest up to the beginning of the present, larger than ever before; and that the extraordinary quantities thus brought in aid of a good harvest, have all been exhausted in the consumption of the Islands, leaving in bond but a nominal quantity with which to commence the new year of acknowledged deficit. The imports into England for the twelve months ending with June, have been as follow: July, 1847, to Jan- IMPORT OF BREADSTUFFS INTO GREAT BRITAIN. Wheat. Oats. Corn. 697,272 279,076 652,788 Other Wheat Indian Other Total in 572,116 302,194 140,230 17,373 2,298,100 Total 12 mos... 2,623,516 1,371,701 2,189,444 1,178,035 4,122,825 778,176 823,966 8,936,161 1847..... 1,059,233 1,208,573 2,556,910 1,448,135 3,784,520 862,866 74,900 7,443,981 The quantity remaining in bond after the large supply, is about equal to 108,000 quarters only. The difference between this and the amount in bond in July, 1847, added to the quantity consumed, makes near 10,000,000 quarters of grain purchased in aid of a good harvest. The prices of grain in England for four years, have been as follow: 30....... 53 2 30 2 53 1 36 10 53 6 31 10 These prices have been rising since July 29th, although they have ruled lower during the past six months than for the same period in the previous four years, and the consumption of food has, therefore, been enhanced, while the extended expenditure of the railway companies has promoted the same end. Every element of a most prosperous year existed, but for the breaking out of political troubles upon the continent of Europe, which checked confidence, and cut off the market for English exports. Hence, while the import of breadstuffs has been so extensive, the means of paying for them have been small. The value of British exports for the year ending July 6th, has been £47,456,431, against £53,673,269 for the year ending with June, 1846, and £49,496,546 for the year ending with June, 1847; showing a decline of £6,217,000, or $30,000,000 for the first year, against an increased importation of breadstuffs of the value of £3,000,000; making a difference of some £10,000,000 against England, with but little prospect, owing to continued political disquiet, of a revival to any considerable extent of English exports. The new year opens with the certainty that considerable imports will again be required from some source, and as a consequence, that the effects upon English finances will be great. The money market of London has, throughout the spring, been easy-that is to say, money has been abundant at low rates, rather because of the absence of demand for regular mercantile purposes, than from superabundant supply. The railway demand has continued unabated, and at the rate of £36,000,000 per annum. The state of affairs, as well in respect of exchanges as of the mercantile demand for money, may be traced in the leading features of the Bank of England, which have been as follow: Notes BANK OF ENGLAND. Securities. Public. Private. January 2.. 11,464,665 February 5.. 26.. 11,588.914 11,574,921 March 4..... 11,574.921 13,115,456 6,574,785 Nett Public. Private. circulation. November 25 £10,863,607 £18,791,117 £7,219,802 £7,866.482 £19,297,756 10,774,870 19,111,880 10,299,027 19,135,955 9.550.889 9.249.804 Deposits. 14,510,363 4,082,448 13,833,592 4,574,063 46 11..... 11,574.921 12.954,702 6.883.063 18..... 11,572,180 12,896,563 6,957,392 9.525,211 17,081,020 30,544,595 14.947.164 9,773,110 17,447,090 10,967,270 15,123,141 * 92...... * 29...... 12,268,630 12,001,556 2,321,338 11,435,742 12,034.028 12,065,481 May 6...... 20...... 11,713,633 11,835 962 11,713,630 11,630,523 June 3...... 11,970.082 11,488,596 " 17...... ** 24...... July ...... 15... "22 * 29.. August 5. 8...... 2,283,391 11,049.918 2,436,781 10,250,972 18,621,800 7,554,455 4.417,182 9,189,604 18,095,400 8,566,010 13,770.669 5,217,473 9,082,672 17,779,405 9,080,655 13,597,206 12,089,1.2 11,148,869 5,911,694 12.411,301 11.229.195 12.522,645 13,602,546 11,255,427 13,207,546 11.200.140 12,807,546 11,093,948 14,418,243 11,580,508 18,360,865 3,832,141 12.462.735 10,951,783 12.... 12,462,735 10,857,119 19.... 12,462,735 10,862.959 4,545.098 8,575,809 18.313,335 64 96.... 12,462,735 10,899,000 4,868,374 8,715,882 18,118,880 8,734,240 9.968,628 18,692,115 7,998.200 13,396,654 The bullion in bank does not materially vary in aggregate amount. There is, however, a continued demand for silver for the continent, while gold flows in. Russia has sent some £500,000 in half imperials to London, and £100,000 to Amsterdam. The silver in bank has fallen from £1,500,000 in July, to £775,147 in August, notwithstanding the large arrivals from America. It is observable that the discounts of the bank, under the head of " private securities," remain at a very low figure. For the month of August, for several years, they have been as follows: The line of discounts is exceedingly low, indicating the stagnant condition of trade in general. The pressure arising from failures last year increased, the loans of the bank ran to a high figure in November, and these were gradually settled without the creation of new obligations. The great difficulty which presents itself now, is the state of Europe. The supplies of breadstuffs in those countries on which England depends, are said to be fair, but the fear arising from political causes prevents the purchase of goods in return. The desire to hoard money, and economize expenditure, prevails always when peace is jeopardized. The moment that industry becomes paralyzed from any cause, and trade stagnant that is to say, the desire to interchange commodities, or the ability to do so restricted, money, specie, becomes the general object of demand in all quarters. That which is money in ordinary times, viz., the individual bills which follow merchandise in its migration, is no longer such-specie alone becomes a medium of payment or of purchase, and its value rises rapidly in all directions. The political events of the last six months in Europe, have wrought this change; and while the armies of all nations are mustering into marching columns, the war ministers of all governments increasing their estimates and enlarging their outlays, adding new regiments to large armies, and putting into activity the producers of munitions of war, the swelling numbers of military idlers decrease the producers of wealth, and multiply its consumers, enterprize perishes, confidence disappears, and all individuals compete with the military chests for specie as the only safe form in which to preserve property from the convulsions attending a state of general war. The confidence and buoyancy of a long peace are becoming fast dissipated amidst the din of resounding arms; the marshalling of troops succeeds the assembling at the exchange; and the activity of the warehouse is transferred to the arsenals. In such a state of things, whether war actually results or not, money in all countries must become more valuable than goods, and the precious metals rise as all prices fall. Superadded to this unpropitious state of affairs is the loss of a large portion of the agricultural wealth of England, which can be supplied from Europe only by paying out that money which has from political causes become more desirable than merchandise. In the United States, these adverse circumstances do not present themselves. While superabundant crops, and extended facilities for transportation, offer the means of supplying on low terms all the wants of England, the disposition to purchase goods, as far as ability to pay extends, prevails. The imports of merchandise into the United States have certainly been less than last year, but the importers and jobbers have been cautious in their credits. The large business of last year grew out of the fact, that the profits of the large mass of consumers, who are agriculturists, were large, and their considerable sales at high prices gave them means of buying, which are, by reason of reversed circumstances, somewhat less reliable this year; and as the fall approached, bringing with it great difficulty in collecting old debts, while the aspect of the export trade remained unpropitious, dealers were less inclined to sell on credit. Later advices, however, showing the wants of England to be large, and holding out hopes of another year of extended sales, changed the aspect of the markets, and induced a more liberal feeling as the fall trade progressed. The export trade of the Union has, as compared with years prior to 1847, been large, furnishing a medium of remittance as well for the internal as the external trade. Under the statistical head will be found the returns in detail of the business of New Orleans for the year ending August 31, 1848. In order to compare the leading items, we have compiled the following table for a series of years: 1842 1843 AGGREGATE VALUE OF RECEIPTS OF PRODUCE AT NEW ORLEANS FOR SEVERAL YEARS. $45,716,045 | 1844 53,728,054 1845 $60,094,716 | 1846 $77,193,464 | 1848 $79,779,151 57,199,122 1847 90,033,256 These returns show the fact, that the value sent from the interior this year to New Orleans is larger than in any previous year. The average quantities and prices of the leading articles have been as follow: The quantities this year, it appears, are larger, and prices such as to swell the aggregate value beyond former sums. Cotton, as an item, afforded last year a value of $32,589,436; and this year, although the price per bale ranges but $29 against. $44, gives a value of $35,200,345. The same may be said of sugar and lard. As a whole, $80,000,000 in round numbers have been sent to New Orleans from a region of country which, in 1841, sent but half that amount, affording an instance of increase in national wealth almost unparalleled. The consumption of manufactured and imported goods in those regions cannot be accurately estimated, but it is probably not so large as last year. Although the quantity of produce received at New Orleans has been considerable, the events in Europe have been such as to derange exchanges, and by preventing the prompt realization of bills, to cause money to be high at New Orleans, as indicated in the difference between sight and 60 days for bills on the North. The produce sent to New Orleans becomes the basis of a large supply of internal and foreign bills, which form the medium of payment at the North for the goods purchased by the Southwest, in the proportion indicated in the following table of the exports of New Orleans for the fiscal year:: EXPORTS FROM NEW ORLEANS FOR THE YEAR ENDING JUNE 30. September 30.. December 31... March 31....... June 30......... Total...... $8,297,322 $911,323 $9,208,645 $3,745,771 $12,954,416 5,731,775 1,163,105 6,894,880 5,627,935 12,522,815 7,372,330 5,358,774 12,731,104 11,317,460 24,048,564 6,240,142 4,273,951 10,514,093 7,142,435 17,656,528 $27,641,569 $11,707,153 $39,348,722 $27,833,601 $67,182,323 In round numbers, $40,000,000 became the basis of foreign bills, and $28,000,000 in domestic. As the former bills were, to a considerable extent, sold at the North, and the proceeds drawn against, the whole amount may be said to have been reproduced in the shape of individual bills, purchased as a medium of payment for northern goods, imported and domestic. It is remarkable that while the business of New Orleans has thus swollen in amount, that the bank credits have been very small. In the region of country embraced as Texas, Arkansas, Mississippi, Illinois, Missouri, Kentucky, Tennessee, and Louisiana, which contributes its produce to swell the aggregates of the above table, there are, in the four first named States, no banks, and in the others, the credits are much curtailed from what they were, as indicated in the following table : LEADING FEATURES OF THE SOUTH-WESTERN BANKS FOR JULY. |