still more for remittance, since bills sold at relatively more profitable rates, and the price reached 120. At this rate holders on speculation were desirous to realize. The demand to go South stopped, the current from the interior turned towards New York, and at the same time the rise in bills had stimulated the export of produce, breadstuffs in particular, which had not risen in price. The expense of remitting capital caused the movement to cease for a time, and the price both of bills and gold gradually declined under this enhanced supply and lessened demand. The specie movement was as follows: Total.. 27,242,318 3,154,960 14,474,566 38,090,997 Under the rising value of gold the amount in the city increased $4,500,000 from the close of June to the middle of August. Much of this was, however, held by the banks on special deposit for their customers. The exports were much less, and the loss of the Golden Gate at sea cut off an amount of $1,500,000, intended for London and New York. The rates of exchange sympathized with the fluctuation in gold; but it is to be remarked that the rates of bills, as compared with the price of gold, always left a handsome profit on the export of gold, and the prices of bills were as follows: The demand for bills was no doubt enhanced by the considerable importation of goods, which arrived freely in August, under anticipations that had been indulged that the duties under the new tariff would not be imposed upon goods actually shipped before that date. The great abundance of money also favored as well the import of goods as the remittance of capital, and this abundance was continually on the increase. It will be observed that since the government began to pay out its paper in the middle of April, the deposits in bank have increased almost uninterruptedly to the extent of $46,000,000, and that the loans, in the same time, have increased nearly $30,000,000, which, to a considerable extent, has been deposited with the Assistant Treasurer for employment, at 4 @ 5 per cent interest. The restriction of general business and the adhesion to cash payments have very greatly reduced the quantity of business paper, and in some cases discount days have passed with absolutely no offerings of paper. At call money has been offered at 4 @ 5 per cent, and in some cases 3 per cent, but leading houses do not take it in for want of employment. It is to be remarked that while this immense abundance of money has manifested itself in the shape of government promises of $5 and upwards, the bank circulation has also increased $1,250,000, mostly in small bills, that have aided to drive out silver fractions, which commanded a premium of from 10 to 16 per cent. The new issues of small notes by the government-designed to remedy this to some extent, but what will really greatly enhance the evil-are expected to be ready for issue by the first of September. The amount to be issued will reach some $36,000,000, and the whole issues of paper authorized will reach $360,000,000, including the $75,000,000 reserved to meet the deposits if demanded. This amount of money was no doubt designed with the faculty of receiving deposits, and of converting into the $500,000,000 loan to meet the wants of the treasury until Congress should meet; but since then the expenses incurred for the organization of 600,000 more soldiers under the new calls will at least double the government outlays, since these men must have new outfits. It is quite probable that the new emissions of money will further cheapen its price, so as to send larger amounts into the treasury for deposit and also for conversion, should the five twenties again reach par. government securities have been as follows: PRICES UNITED STATES PAPER. The fluctuation in The fall in the government stocks during the plethora of money may be ascribed partly to the quantity of stocks sent from abroad to realize, and partly to the reverses that overtook the armies. They however gradually recovered after the payment of the dividends in gold. The interest on the first issue of $50,000,000 7.30's fell due August 19, and was paid in gold at the treasury. The premium on gold being 15 per cent, the holder realized equal to 8 per cent interest. At some of the treasuries the gold itself was not paid, but the premium allowed. Most of the States also paid their interests in gold. The advance of the government five twenties to par and over, would no doubt cause the conversion of a large amount of floating paper, and make some change in the relative value of paper. The importations at the port for July have been very large under the circumstances. There was some desire to enter goods, however, before the anticipated new duties should go into operation. As compared with last year there has been an increase of $12,000,000 in the imports of July, and for the seven months of the current year as follows: January.. IMPORTS, PORT OF NEW YORK. Entered for Specie. Free goods. Consumption. Warehouse. Total. $163,658 $2,552,050 $6,663,396 $3,141,725 $12,620,829 62,007 3,381,478 7,058,174 8,870,486 13,872,140 4,841,846 18,719,866 3,853,218 13,252,882 Total, 7 months.. 26,152 2,232,315 7,141,197 110,383 1,146,093 8,091,120 4,600,920 12,948,516 61,023 1,122,092 7,278,953 2,874,127 12,336,195 219,001 1,831,932 18,799,505 4,502,764 20,353,202 $731,556 $16,041,959 $60,445,034 $28,185,086 $105,403,685 1861.... 32,906,166 20,257,965 35,191,920 80,441,676 118,797,727 Exclusive of specie the increase has been nearly $20,000,000, and this increase in the last few months has taken place under advance circulation. The importer has been required to encounter higher duties, and, in consequence of the paper depreciation, higher exchange, and also a premium on gold with which to pay duties. The exchange is 20 per cent higher than in the spring of last year, and the premium on duty notes has ranged 5 @ 9 per cent. The average probably makes goods cost 35 @ 40 per cent higher than last year, and the increase in market prices has not been proportioned to this increased cost. Nevertheless there is a firmness among holders. The duties collected by the government were very large for the month of July, by reason of the large imports and the quantities taken out of bond. The results were as follows: The fall business has, to some extent, been checked by the military movements of the government, more particularly the orders for drafts, the effect of which was likely to interfere with the business arrangements of great numbers. The exports of domestic produce have been stimulated by the higher rates of exchange, which have been to the profit of the bill drawer. The exports have been as follows: Following the rise in bills, each successive month has manifested an increase in exports. In free foreign goods the increase has been mostly guano shipped to England. The rise in the prices of the breadstuffs shipped has been about equal to the rise in exchange. It is obvious that the value of the produce shipped is governed by the specie price in the market of sale. With the paper depreciation here, the prices will apparently rise until they are higher than abroad. That rise is compensated to the shipper in the superior price he gets for his bill, hence the apparent rise never interferes with the progress of export. Nor is it likely that, for the present, the prices will rise even in paper so much as other articles, since the crops are largefar exceeding the demands of the home market. The harvests abroad may yet make considerable quantities desirable. CONTENTS OF No. III., VOL. XLVII. ART. PAGE. I. SALT MANUFACTURE OF THE SAGINAW VALLEY, MICHIGAN. 209 II. EXCISE TAX...... 224 III. INDEX TO EXCISE TAX................... IV. DISTILLATION OF PETROLEUM..... 288 295 COMMERCIAL CHRONICLE AND REVIEW. The Fluctuations in Gold-Laws of Finance-Rise in Gold and Exchange-Its Causes-Gold Demand for the South-General Sherman's Order-Wants of Manufacturers-Price of Cotton-Hoarding Gold-Remittance of CapitalCulmination of Gold Price-Exchange Rates-Specie Movement-Current Towards the City-Golden Gate-Rates of Exchange-Large Imports— Accumulation of Money-Bank Deposits—Circulation—Silver—Small Notes -U. S. Deposits-Conversion-Large Expenses-New Levies of TroopsPrices of Stocks-Fall of Stocks-Interest in Gold-Duties-Increased Cost of Goods-Table of Imports-Rise in Prices to Cover Cost-Drafts Checked Trade-Exports-Table of Exports .... 299 |