Difference of profit $22,500,000 6,000,000 $16,500,000 Flour, at $15 per barrel, is at about 7.6 cents per lb. The gross population of the United States we may estimate at ten millions, and each person will consume or waste, on the average, lb. of breadstuffs per day, the price of all sorts being regulat ed, as it naturally will be, by the chief commodity of its kind. The domestic consumption will amount to 2,750 millions of pounds in a yearwhich at 7.6 cents per l. is equal to But the same quantity, with flour at $208,800,000 55,000,000 Difference of cost or value 153,800,000 cially to favor us: though the state of the world for to the foreign demand; this quantity, at $15 per twenty-five years past, has given to many queer no- bbl. would be equal to tions of things. Another complete revolution in The same at 84, is only France, or a topsy turvey state in Great Britain,might keep us a-going, without much regard to political economy, for twenty years more, perhaps; but, unfortunately, though we have good hopes now and then, the people will not, or cannot, "do the deed" to give us prosperous times! Even poor Napoleon seems to be located for life at St. Helena, though thousands of those who affected to bless Gon for his subjugation, would now sincerely thank HIM for his liberation, and firm footing in Europe. The spirit of trade would supply the dominions of Puto with sulphur, at the risk of receiving the future benefit of the fuel! In this adverse condition, we borrowed three millions last year, to meet the current expenses of our government--we are, in like manner, to borrow seven for the service of the present, and must borrow again for that of the next, say 1822: but here the system will probably stop, because the people will not bear it, and Apparent loss! $137,300,000 gentlemen will have to risk their "popularity" in If it is objected, that all persons do not eat wheat. providing ways and means to quadrate the receipts en four-that many do not eat it at all, and that to the expenditures. They must levy internal taxes; a multitude would be compelled to resort to coarse but these taxes cannot be paid until something is food if it was at $15 per bbl. the answer is ready done to encourage and protect national industry--the rise of the price of meats would far exceed the free labor of the United States: for it is this that any deductions which could be reasonably made supports the government in peace and defends it on account of these things. Meat and grain are in war. It is those who exert it that are the very always dear or cheap together: there is a natural "bone and marrow" of the republic, without refer-equality in their value-in cultivated countries. ence to sectional differences or geographical lines; I have no information which can lead to a toler. and who, thank Heaven, possess the power, and ably correct idea of the proportion of the people will, before long, bring it into action for self-de- of the United States, whose equated time may be fence. said to be occupied in the business of raising bread. The principles of things, belonging to produc-stuffs-but one fourth of the whole would seem to tion and consumption, are too little examined into. We oftener act by habit than according to the rule of that habit. In some cases, through practice, we clearly understand that it is the capacity to obtain that really fixes the value on an article desired; but in respect to others of the same nature and operation, founded on like immutable laws of reason, justice and truth, we are quite in the dark; and we esteem effects without taking the trouble to investigate causes. Philosophers argue against the perpetual motion, because all bodies seek a state of rest: so it is with mankind generally--they are pleased or displeased with a state of things, and commend or deprecate it without investigating the original principles on which it depends. Let us examine this in a familiar way, to shew the force of our remarks: flour, at present, is selling for less than four dollars per barrel, in our markets on the sea-board--but every body in our cities,--doctors, The elements derived from the simple cose stated lawyers, priests, merchants, mechanics, draymen, (and I defy a contradiction of its general principle) common laborers, shop-keepers and chimney apply more or less to every thing which the free lasweepers, would be glad if, by some foreign event, bor of a country produces: for in this, it is presumit could be fraised to the value of fifteen dollars.ed, there are no monopolies, and that every one So far, then, the whole people are political econo- pursues that branch of industry which holds out inists. Why so? Because they know it would make every sort of business lively, and furnish every one with plenty of employment. They all know, though the farmer would make much money by a steady demand at that rate, they would also come in for a share of the benefit, and that the country at large would be prosperous and happy. But if they were to go into a calculation of dollars and cents, and regard the rise merely as a money-making matter, they would conclude that a majority must be great sufferers by this rise in the cost of flour. This is easily shewn by "obstinate figures." Let us suppose, that with considerable exertion, we might spare 1,500,000 bbls, of flour in a year, be a pretty large allowance. Deduct then, for the consumption of this fourth of the whole people, their share of the general aggregate value, raised by the foreign demand for 1,500,000 bbls. of flour, at $15, and it will seem that the other three fourths may pay the enormous sum of 102,975,000 dollars in one year, to the exclusive benefit of the growers of grain and meat for men! This is the reasoning of the writers and speakers against domestic industry, as applied to home manufactures. But the real result is on the other side-the ability to pay makes the cost of the article easy to be paid. It is a homely saying, that "the proof of a pudding is in its eating." We have eaten bread when flour was worth 15 or $16 per barrel; we now eat at the rate of 4 dollars. We shall not insult the public understanding by saying, at which of those periods we were most prosperous and happy. the best prospects of profit. It is Mr. Rich's purpose to enquire into these things-to ascertain and exhibit what it is wherein the real wealth of a coun try consists, that we may appeal to it in the time of our need,-which is close at hand. But many will not believe "the words of this prophecy"—and go on as if they can "make bricks without straw." Well-"experience is a dear school-but some will not be taught in any other." Many laughed on another memorable occasion at our predictions,— who have since, with groanings, acknowledged their fulfilment, and more. They were gamblers, and depended on the chapter of incidents-just as we, in a national capacity, are doing now. Borrow, borrow, borrow, seems to be the alpha and omega of our finance, without any provision to-re-pay. The time was, when such proceedings would have been severely canvassed by the people. This is TRUTH, let it offend whom it may. rest upon chance. Finance is an important branch of political economy, and the prosperity of any system must rely on the ability of a people to pay and this ability rests on the amount of profit earned. But, when one man in Europe as a manufac turer, makes as much cloth as ten men in the United States can raise bread stuffs to pay for,--there is no mystery in it that, if the latter deal with the former, they must become poor, and finally be compelled to cease purchasing his cloth. There is nothing hypothetical in this: the gloomy proof is before us--the revenue from imports has amounted to thirty-six millions-it averaged about eighteen millions for several years; it last year produced about fourteen, and next, will not yield more than eleven, if so much. There is another remark of much force on the general effect that would be produced by the rise of flour to the price supposed. The income to government, from the taxes laid on goods imported, would double its present amount. But a sudden rise in the value of two other great staples of our country, could not produce either of the grand operations which would be caused by an increased value of flour. The persons who derive a profit on the cultivation of cotton and tobacco are already wealthy, and can indulge themselves in all sorts of luxuries and conveniences that they please, and Since the preceding was written, we have noticed their number is very small. It makes no difference that the editor of the Richmond “Enquirer,” with to those who labor in rearing these articles, whether his usual zeal, has severely attacked Mr. Rich's the price is high or low. They would not wear su- resolution for an "enquiry." His cry is, "LET us perfine cloths or drink Madeira, if cotton was at ALONE,"―laissez nous faire. I say, LET US HAVE NO one dollar per pound, and one hand could raise LOANS-ne faisous point d'emprunt. My doctrine was twice as much as he does now. A few individuals as fashionable to the whole republican family a would become rich, immensely rich-rather to in- few years ago, as that of the "Enquirer" now jure than benefit the public. It is by the disper- is, to a certain description of persons. Suppose sion of profit, that the happiness of a people and that both of our favorite phrases are agreed to, the welfare of a state, is promoted. Thus, if A. as right in themselves-that we let foreign trade has 10,000 dollars a year already--and you give him alone, and REDUCE Some of the duties 50 per cent. in 20,000, you do not effect any great change in the evidence of our zeal; for certain of them, as, on manners of his life--he may gamble higher, and wines, teas, &c. are enormously high-and on the squander money more foolishly, but he will not other hand, resolve that we will pay our debts wear better clothes nor use more luxurious viands fairly, as we go along, and not "rob Peter to pay than he did before: but if B. C. D. &c. to the num- Paul"-how would this affect the interest which ber of twenty, whose aggregate receipts in a year the editor of the "Enquirer" is so jealous of? A were equal to A's 10,000, at 500 each, were so direct tax of eight millions would have to be laid, changed in their condition as to earn and receive and this tax, we know, is bottomed on the repre20,000, what a difference in the manner of their sentation of the states. Virginia's share of it would living would there be!-not less than one half of be fifty times as much as she would have to pay on the increased amount received, would be expended account of an increase of the tariff-which, by afin obtaining better clothes and richer meats and fording a home market to the farmers of the more drinks. The first would not add any thing to the northern and western states, in the establishment stock of individual happiness; but the second make of manufactures which should give employment to twenty men and their families "comfortable," and the whole productive capacity of the country, add to the public revenue a thousand dollars a year, would enable the people of these states to purby an extended consumption of costly goods. Such chase foreign goods, and of course pay the necesis the nature of the things that would be enquired sary amount of taxes upon them. It is not necesinto, if Mr. Rich's resolution was rightfully consi-sary to tell Mr. Ritchie, that the consumer pays the dered, and they would have much weight on the tax; and that, perhaps, three fourths of the foreign statesman's mind, when called upon to grant a loan goods imported, are consumed in these more northof seven millions of dollars for the ordinary service ern and western states. The reason for this supof the year 1821. In the present state of affairs, position will strike him at once: at present, we and depending for revenue on duties on imports, wish to say as little about it as possible. But there we see clearly that the receipts will not equal the is a strange perversion of facts in respect to this expenditures; and it also seems certain that inter-matter. The "Hartford convention" told the peonal taxes, direct or indirect, could not be collect- ple of the immense amount which the eastern ed just now without great difficulty. No prudent states paid to government, and now we see even man, no honest man, will borrow money without the legislature of Louisiana speaking in the same some calculation for repaying it. If then, I had the strain-but Mr. Jefferson's reply to a citizen of honor at this time to be a member of congress, I New-York, who boasted of the immense revenue certainly should vote against the loan, even though, derived from that city, may silence the wholein an old hacknied phrase, “it stopped the wheels "remove the custom house across the Hudson,” said he, of the government," unless I clearly ascertained how and the CITY OF JERSEY will pay it.” such monies were to be returned, as well as the If disposed "to do evil, that good might come out point at which the borrowing system was to stop. of it," and supposing that the people were able to If a man can earn ten dollars a week, and live upon bear the operation, there is nothing which I can 6, he may honestly borrow one hundred dollars, pay-conceive would be so effectual upon the "let us able in 25 weeks: but if he earns only six and expends ten, there is prima facie evidence of a want * The legislature of Louisiana have before them of discretion or a want of honor, if he borrows mo- a bill to petition the general government to erect ney, without laying some plan whereby his receipts, fortifications for their defence. They state that being increased beyond his expenses, will enable upwards of eleven millions of dollars have been him to repay it. My vote, therefore, for or against a paid from their state to the United States' governloan, would be regulated by the prospect of provid-ment since 1815, and they have expended for their ing money to retire it. Such provision should not defence but $200,000. ulone”--men, as really to let them alone-to give struction," as some of the wise ones at Londen foreign and domestic merchants the liberty of im- proposed to do at the commencement of the late porting and exporting what they pleased, without war), and have since been put into suit in the cir the payment of any duty whatever-to make the cuit court of the United States. The improvi ports of the United States free, in the most exten-dence of loaning out such an immense sum at Cin sive meaning of the word. If so, the government cinnati (a sum larger in amount than was loaned would become bankrupt after the first year of the in the great city of New York, nearly equal to experiment, and not be able to borrow one dollar, that in Philadephia, and more than the amount unless taxes were raised, which would make of the aggregate loans at Portsmouth, Boston, Prothe people feel-and put them to THINKING.-vidence and Middletown, by a million), was only to "Every good rule must work both ways.” be equalled by the rash act with which the matter has been concluded, and the loss must be enormous. THE INDIAN TRADE. The Detroit Gazette of the 15th December last, contains a long account of the As we the people of the United States have paid Indian trade, as carried on from that city and Michil- and are paying to the bank of the United States, imackinac, by several private companies, especial. the sum of three hundred and fifty thousand dollare ly that of which Mr. Astor is the head, and another a year, as the interest on the stock which forms under the firm of David Stone, & Co., both are a part of the capital of that institution, we think, large establishments, with abundant capital and that while congress seems disposed to curtail the great experience in the business. It is at Michili- public expenses and see what becomes of the pubmackinac that the grand rendezvous is held-here lic money, it is absolutely necessary to raise à the factors and traders meet in June and July, to re-committee to enquire into the state of the bank, and ceive the proceeds of the last year's business and let us know why we are losing this 350,000 dollar furnish new supplies of goods. Other companies per annum. An investigation has become essen- have their establishments at Green Bay, &c. and tially necessary, from what is stated, we presume the rival capitals embarked in the trade seem to understandingly, in the "National Intelligencer." keep the whole matter pretty well balanced. On the 5th of December ult. the house of repreThose who do business at Michilimackinac are said sentatives called for the last return made to the to employ at least one thousand men, who pene-treasury department of the state of the bank; and trate the Indian country, some to the distance of on the 7th of that month, Mr. Crawford sent to twelve hundred miles, sweeping the whole land the speaker the statement which, by extract and from lake Winnipec to the waters of the Illinois abstract, we inserted in the REGISTER of the 16th, and Wabash. Batteaux and canoes are used to pages 248 and 249. It was exceedingly difficult to transport the merchandise to and fro; but the waters understand that "return," and gather from it any are interrupted with many rapids, shoals, &c. round information which clearly shewed the real state of which both the boats and merchandise have to be the bank, which it was the object of congress to ob carried on the men's backs for which purpose the tain. But it now seems, by the explanations of the latter is put up in packages of 80lbs. It is a life of editors of the "Intelligencer," that we were in erthe utmost hazard and hardship, and yet it seems ror in considering this "return" as a "bank report.” that those engaged in it become attached to it, and Copies of such statements, it appears, are transthink all their labor and toil repaid by their annual mitted to the secretary of the treasury-"not prerelaxations at Michilimackinac. It is stated that an pared for the public eye, and not intended for it”— industrious Indian hunter, under favorable circum-"containing nothing more than a view of the means stances, will collect a pack of peltries, worth from of the bank"-"not exhibiting the facts which are 80 to 100 dollars-but there are only a few that do necessary to enable the stockholders to form a this. They are proverbially improvident, and make judgment of the propriety or impropriety of mak.. haste to get rid of their stock, which they often ing a dividend; because the statement is not made bring to the principal establishments on sledges out with a view to that object." These are the drawn by dogs-each dog drawing about 200lbs. words of the editors of the "Intelligencer"—but we It is stated that the roads through this great extent may ask why a statement has not been made, by of country are just as well known as that "between which a judgment might be formed of "the proNew-York and Philadelphia." The greater part priety or impropiety of making a dividend”—in of the persons engaged in this business, though other words, why are the people not informed of faithful to their employers, unaccustomed to the the real condition of the bank-why the government restraints of civilized life, are spoken of as being pays to that institution the sum of 350,000 dollars very wild and extravagant in their seasons of relaxa. a year for "nothing at all." We have a right to tion; but that being expired, they resume their these wars-the people have a right to know how hardy employment with great cheerfulness, and live in the anticipation of future enjoyment next year. The subordinates are chiefly Canadians and half-breeds, and called engagees. their affairs are managed-to be furnished with plain statements of the receipts and expenditures of the public money, as well as with the reasons for such receipts and expenditures. This is old fash. ioned republican doctrine; and if any one had BANK OF THE UNITED STATES. We have before doubted it eighteen or twenty years ago, he would mentioned that the office of the bank of the Unit- have been regarded as at enmity with his own dig. ed States at Cincinnati, has been withdrawn. The nity as a man; and we trust that there is yet leaven amount of debts due at that office, by the local enough of the old school remaining "to leaven the banks and individuals, according to the report of whole lump," if it is once roused to action. Re the state of the bank recently laid before con-sponsibility is not so fashionable now as it has been; gress, was two millions, two hundred and eighty-nine but we must bring it into use again. Vigilance is thousand, four hundred and fourteen dollars. On the condition on which liberty rests. withdrawing the bank all the notes were protest. On the subject of a dividend by the bank, the ed, as they became due (for to pay such a sum "Washington City Gazette," observes-It is underas this at Cincinnati, was just as possible as to sail stood that the board of directors of the bank of the up the falls of Niagara in brigs "of a peculiar con- [United States, have declared that it is yet inexpe dient to make a dividend: notwithstanding by some sort of management, the stock is kept to two or three per centum above par. This is a seeming paradox we should like to see satisfactorily unravelled; that stock, on which no dividend is made, at present, or likely to be, perhaps for another year to come, continues to be held up, in the market, above par! The pretended secret of alchymy, is not more inexplicable, to a common understanding. LETTER TO THE EDITOR. Boston, January, 1820. SIR-I feel indebted to you for your long continued exertions to open the eyes of the people of the United States to the abuses of banking, and to exhibit rag-shops in their true character. You cannot think worse of them than the writer. The advantages of banks of real capital, should not, how. ever, be rejected on account of abuses; neither should unreasonable expectations be encouraged. Some remarks in a late REGISTEN, respecting the United States Bank, appear to me to be founded upon erroneous principles, and I therefore trouble you with the subsequent remarks, by way of reply; the insertion of which may tend to elicit the truth, the constant aim of an upright and able editor. YOUR CONSTANT READER. and sacrifices to furnish a sound currency, together A suffering stockholder of the U. S. Bank. REMARKS BY THE EDITOR OF THE REGISTER. Believing, as I do, that the bank of the United -I frankly confess that I am hostile to it, and especial so, when it exhibits such instances of modesty as were displayed in its late memorial to It is altogether surprising that persons of com- congress;--yet, if I know my own heart, I can give mon judgment, having the least acquaintance with the very "evil his due," and would not detract business and money transactions, should ever have from the merits of this institution, such as they are. supposed it could be in the power of the United do not deny that it has been useful in checking States' Bank, to give to an ample currency, of equal the progress of the rag-mania which fastened upoй value throughout this extensive country. If it is us some years ago; a disease which, unfortunately, in the power of a bank to make all bills issued unhas the least affected those who introduced it:--- but der its authority redeemable in every village in the it would be bad, indeed, if, for all the evils which nation, by appointing a sufficient number of agents, each provided with competent funds, the loss of all reasonable profit to the bank would not be, by any means, the worst part of such a system: The total absence of public accommodation, or occasional violent local pressure, to which the bank would be obliged to resort for its own preservation, would result in deep public injury. we have suffered from this bank, if on account of those more fearful which we justly apprehend, no good thing came out of it. The conflagration of a city purifies the air, and relieves us of many bad buildings-in an unpleasant way, to be sure, and at a great loss of property-so the bank of the United States has accomplished its benefits. It is now talked of as rank nonsense to expect that this instiThe United States Bank has done, and is doing tution should give us a currency of equal value in much good to the community, in restoring a sound all parts of the republic:-but who will be bold currency; but it cannot invert the order of nature. enough to say that, without an expectation and a A canal company may supply the means of commu-promise of doing this, the bank would have been nication; but it cannot make water run up hill. The chartered? It was this, and this only, that dragged the case is so plain that it is difficult to comprehend act through congress over prostrate consciences, how it has ever been misunderstood. Such, how-(if I may be allowed the expression), and the conever, being the fast, let us endeavor to illustrate it by a similar case. stitution of the United States. It appeared necessary that something should be done to restore a The countries bordering on the waters of the wholesome currency-it was said, and believed, Mississippi being subjected to heavy charges of that this bank would effect it, and therefore it was ransportation, a steam-boat company is establish- incorporated. This was the condition of the coned, which immediately reduces the expense in tract- it was the premium which clenched the barreight, risk, and time, to one fourth. The compa-gain; and we will not give it up. The much-talked y establishes ware-houses in each principal town, of bonus was another affair altogether, and dependand soon discovers that labor may be saved by issued on different considerations; it was given for the ng receipts or drafts, transferable, which pass from advantage of the public deposites,--for the benefit and to hand in the course of traffic. It has in its of being the money-keepers and money-changers umerous ware-houses goods of similar kinds, go- of the government. Perhaps it may have been a ng both up and down the river, and much facility hard bargain in this respect-but even if so, the s afforded by exchanges. Suppose a large propor- account is about balanced already; the extra interion of these receipts should be suddenly present-est which we pay to the bank for the 5 per cent. d at Pittsburg, New Orleans, the mouth of the fellow Stone, or any intermediate station? The umber of receipts must never be suffered to be arge, or the power and credit of the company must e put in requisition in the neighborhood, at every acrifice, to satisfy the demand. The bank was required at its outset to assume a arge amount of uncertain debts for the benefit of he treasury, by which means, as well as exertions stock issued to form a part of its capital, has nearly 1 from!!) let the "institution be broken up at once," and we shall be rid of what will serve as a fulcrum whereon to rest the lever which, shall dictate pub. lic opinion and govern the government at a future day, unless the people use great caution and are always on the alert. There was an error in the ori ginal organization of the bank, which has caused some of its most serious difficulties-we mean the establishmit of so many offices of discount and deposite. One of these has been withdrawn, and if others were retired, we believe it would be advantageous to the bank and the people, on many accounts. "TRIAL OF THE KING OF ENGLAND!" In our last paper we concluded the trial of the queen. The New York "American" furnishes us with some extracts from a pamphlet recently published in London, entitled "Non mi ricordo; or the examination of George IV. at the bar of the house of lords." It affords a fine satirical view of the manner in which the trial of the queen was recently conducted, and contains many keenly-pleasant cuts at the worthless monarch. It will serve to relieve the documentary matter of the present number. See page 334. VENEZUELA. The sword is stayed in this long desolated country-an armistice has been conclud. Then follow the general tables, shewing the ag ed for six months-Morillo was prepared to depart gregate in each district. As similar tables have for Europe, and the probability is that there will been frequently published in the REGISTER, We shall not be any more war; though the chiefs have en-content ourselves now with enumerating the ports, tered into stipulations as to the manner in which it the aggregate tonnage, registered or enrolled, at shall be conducted hereafter-which is to be ac each amounts to more than 10,000 tons. cording to the rules of the most civilized nations, Waldoborough, Maine Bath, Tons. 20,945 do. 20,783 Tons 95ths. 612,930 44 The enrolled and licensed tonnage is stated at 571,058 46 The tonnage on which duties were collected during the year 1819, amount Middletown, Connecticut,' 16,274 ed as follows: 600,917 38 76,918 75 1,452,591 93 Savannah, Georgia, 13,404 Duties were also paid on ton. nage owned by citizens of the United States engaged in foreign trade, not regis tered 8,823 06 New-Orleans, Louisiana, The aggregate tonnage of the Unit- 9,722 48 Permanent registered ton- 42,413 Tons 95ths Total amount of tonnage on which duties were collected, Temporary, do. 1,462,314 46! 1,260,751 61 540,841 08 72,089 36 612,930 44 |