The New York Herald Newspaper, June 26, 1865, Page 2

2 , MONEY. FINANCES OF ENGLAND. 1812 T0 1826. Great Struggle to Sustain the National Credit. Specie Payments Suspended Twenty-one Years. ENGLAND ALMOST EXHAUSTED. BANKRUPTS AND PAUPERS. MEETINGS AND MOBS. GREAT SPECULATION. THE PANIC OF 1826, &o., &o., &o. OCOMMENOEMENT OF ENGLAND'S TROUBLES. ‘ghe most formidable financial difficulties that the gov- ernmont of Great Britain over encountered arose during the time from 1812 to 1819, and again in On the Ist of January of the former. year, with a popu lation (including that of Ireland) of only seventeen mil Hons, her funded and floating debt amounted in round numbers to six hitndred atid fifty millions of pound, sterliny, which is about three thousand one hundred and ‘twenty millions of dotiars, and the papr cir culation, embracing bank notes and exchequer bills, had ‘reached one hundred and fifteen millfons of pounds, equal to five hundred and fifty-six m ions of dollars, which was depreciated nearly twenty-one per cent; while the government credit was twenty p-r cent below ti at, or forty-one per cent under the gold standard, The facai troubles of the country were also greatly aggra vated at that time by the dim prospect of a termination of the already protracted war with France; the g certainty of hostilities with the United States; the o rence of numerous failures and bankrupteies, wh'ch in the preceding yoar numbered two thousand ono hundred and forty-four; the discontent of the people and the riot and distvrbances in the maunfacturing districts, which « general prostration of trade engendered—to all which may be added the burden of an imbecile menarch and the ruling of a stubborn and unpopular regent. DIFFICULTY IN NEGOTIATING 1.04NS—SOARCITY OF. COIN, ‘The first Joan in the year 1812, which was for twonty- two and a half millions of pounds, was offered on the 12th of June, at twenty per cent discount for Bank of England notes, or one handred and twenty pounds of stock for ‘ono hundred pounds in money. The term “money”? at that day in England meant either ooin or notes oi the Bank of England, which wore, to a certain extont, a legal tender, while in the United States it had reference excla- sively to gold and silver, ‘Tho loan was negotiated with groat difficulty, and even drnmnming had to bo resorted to before the required amount was represented in the footings of the subscription books. The precious metals had become so scarce that great inconventence was expe- rienced in the various branches of business, and thirty shillings in paper would at times barely purchase guinea, or twenty-one shillings in gold, It was stated that British coin was even moro plentiful In Paris than tt was in London, owing to the fact that Bonaparte had cunningly pormitted the oxportation of grain and othor products for the expross purpose of draining his enemy of haéd money and depreciating his paper credit, DEPRECIATION OF PAVER— JKIPTS AND EXPENSES, During the year the threo per cent consols, which were the mercury of the government credit thermometer, fluctunted between 5534 and 63, and the average price of ‘one hundred pounds sterline of gold was one hundred and twenty pounds fourteen shillings and ninep>nce in paper—which was a depreciation of the currency of about twenty-one and three-quarters per cent, ‘The aggregate recoipts and expenditures for the year 1812 were as follows:— Porman nt tax... War tax and miscellancous Loans and exchoquor bills. Total rece Expens, ts Excess of receipts over expense Redemption of debt... THR MASSES GETTING DISCOURAGED. The year 1813 opened with no brighter or more en- couraging prospects. The war with France continued, hostilities with the United States had commenced, and ‘trade im consequence had greatly diminished; the priva- teers of this country were preying upon British com- merce, the English lower classes were clamorous and riotous, and the credit of the government was gradually on the decline. ANOTHER LOAN—HOW IT WAS NEGOTIATED. Another loan of twenty-seven millions of pounds was called. for, which was contracted on the following torms'—For every one hundred pounds of money ono hundred and ten pounds of three per cont stock and sixty pounds of four por cent stock were given, making one hundred and seventy pounds of stock for each one hundred pounds of money. In obtaining the above men tioned sum the national debt as necessarily Increased the following amount;— Three per cents. £29, 700,000 Four per ven! TOL sos ccconoewegeces scevecesesseosee ces £45,900,000 which, togother, demanded the payment of an interest of £1,529,000, The depr 1 condition of the govern- ment stock is not even fully shown in the above Ogures; for, when the premiums, brokerage, &e., were paid, It was found that tho loan netted barely twenty-five and a half millions, Consols ranged during the year between 56% and 61%. The Bank of Kngland had increased its ciroulation to twenty-five millions of pounds, und its notes wore ut a depreciation of twenty -throoe por cont, NEW FINANCIAL MINISTER —THE SINKING FUND | sysrem. A now cause of excitoment in financial affairs now @prang up. Mr. Pitt, who had managed the finances of tho nation since 1786—a period of twenty-seven years— was guoctedod as Chancellor of the Exchequer by the Right Honorable Nicholas Vansittart, who proposed to uproot @ portion of Mr. Pitt's policy. The vinking fund system, which was established by act of Parliament In 1802, and goncrously fostered by Mr. Pitt, until in 1813 it was made to yield ovor Hfteen inillions of pounds, which was applioabie to the redemption of the debt, Mr, Van- Aittart desired to abandon, and turn the amount over to the current oxpenses. His argument in eupport of the desired change would noi | onsidered strong or con- vineing at the present day; but whatever was thought of it at that time, the~proposed alteration colved the sanction of Parliament. Mr. Vansittart con. tonded that, as the sinking fund had become an engine of such vast power and efficacy, there was groat danger Of the dovt becoming reduced too rapidly. If the contrac. tion of loans, he said, should cease, tho sinking fund ‘Would soon come to pay off thirty or forty millions Annuolly, and the reduction of these immense sums could not, as previously, be concealed or neutralized by aneous contracyon of debt to an equal or ‘ster emount, but it would appear at once by the in \tion to Chat extent of the public funds every year, e sim ying of thirty or forty millions annually for the ne sly years and then suddenly ceasing? Buch ow event, he contended, would produce effects upon the it invest {the country too, formidable een for tmagiuatton to ©. Tt might be sup. po b8ve ary nt that the new Chancellor of ' ‘ a large debt, if not plainly » 1 loot et a “hlessing in dis. 6 WOU by his subeeq tly stating = that Re had « mew plan , would aise ghacggitne ontif@ debt by the 4 His new systom ‘was adopted; but it is hardly necessary to say that con- siderably over sevon-eighths of tho debt still remain. We give below a table showing the result of the two sinking fund systems adopted by Mr. Pitt and Mr, Van- eittart:— MR. Prrr’s ONE PEG CENT MR. VANaETTART’s NEW sve. SINKING oan ee ao BE 85 328s SPREE « EsSS SSEZESSE as Be if 8 SSS RSCKIPTS AND EXPENSES IN 1813—SUBSIDIRS AND PAUPRRISM. ‘ The receipts and expenses during the year 1813 were as follows: — ‘Total receipts from all sources. + £160,062, 208 Aggregate expenses........% 180,061,201 Excess of reco! 591,007 Bock redvemede beer Included’ in the expenses of the year 1813 are loans of two millions: pounds to. Portagal, two: miltions! in money and stores to Spain, ® million to Sweden, # mil- lion to Austria, three millions’ to Russia and) Pruiste, two millions in stores to Germany and four hundred thousand to Sicily: Tho subsidies to foreign countries in 1314 amounted tn the agzregato to £10;400,000, and included among what may be termed extraordinary expenses, the government paid that year seventeen millions of pounds for the sup- port of paupers, which numbered over two milllons of persons, who were totally unablo to sustain themselves. CIRCULATION GF THB BANK OF BNOLAND—THE WAR ENDED. ‘The circul:tion of tho Bank of Bugland had now reached nearly thirty millions of pounds, and tho average depre- ciation of paper money was over twenty-five per cent, haying at one time reached thirty per cent. In May, 1514, hostilives between France and England ceased, and monetary affairs for a short tim assumed a brighter aspect. THE WAK RENRWED—FINANCIAL AND OTHER TROUBLES RECOMMENCED. In the carly part of 1815, however, Napoloon again broke loose, and Kupope was once more called to arma, and the former ‘scenes of failures and riots in Groat Britain wore re-euacted, A London paper, in March, just after the nows of the escape of Bonaparte from Elba reached England, contained @ list of sixty-one bank- ruptcies in one week. Consols fell from stxty-ono to fivty-six, exchequer bills wero two shillings to six shillings discount, and gold sold at a premium of forty per cont, ANOTHER LOAN—IPS TERMS—-KNGLAND'S OREDIT SUNK VERY LOW. Tho Bank of England had ovor thirty millions of paper afloat, and tho specie in its vaults was re- ducod to ton and a half millions, and to moot tho ap- Proaching exigencies the Chancollor of tho Exchequor called for a loan of forty-two millions of pounds, but Par- ! _— entire tenantey to prison for nom-payment of rent, and, aa his own income was thus cut off, he expected goon to be forced to follow thom. In eome parts of the west of Eng- land, particularly in Derbyshire, whole districts. wore re- duced to misory. The tenants threw up their farms in bodies, they being inadequate to yteld sufficient to pay the taxes, and large tracts of country were literally laid waste, agif tho ravages of pestilence or famine er wer had swept over thom, and proprietors who used to receive thou- sands a year for rent had not as many hundreds, and in many cases scarcely anything at all. . APPEALS POR 4 REDUCTION OF TAXES. Woe have in these fow sentences endeavored to daguer- reotype the condition of England pedtly.a year efter the rostoration of peace, both with France and the United States, at which time the prevailing ory of the peopld was for a reduction of the taxes, & curtailment of the enormous establishments and a retrenchment of the ex- ponses of the civil list, which together reudored euch op- proasive taxes fiecéesiry. . INTERNAL DIFPIOULTIES—-MOBS AND RIOTS. Although England had no ware with foreign nations to arrest her progress in 1816, she was troubled with {nternal difficulties of the moat formidable character. Meetings, mobs and petitions to Parliament for relief were of almost daily obourrénee ; the groans of the people under the hoavy burdens of taxation, the infuriations they at times exhi- Dited, the atreot attacks mado upon what was tormed the sycophantic ministry and their, friends in Parliamont, coupled with the threats of assassination against tho Prince Regent, and tho orick of the poor for bread, ren- dered the kingdom of “crazy old George tho Third,’' as, -he'was called, a not very enviable country in which “to Being up 4 family," ENORMITY OF THN NATIONAL. DERT, Some curious questions, with their answers, wero pub- lished during the year 1616 in relation to the national debt, from which we cull the following:— @ Ifthe debt wasin one pound Bank of England notes how much would it weigh? A. Seventeen tons. Q How large a space woutd the notes cover? * Four thousand five hundred and sixteen square 08. ps If the debt was in guinoas how long @ line would it ce? A. Ten thousand five hundred and twenty-one miles. Q. What would be its weight in gold? A. Fourteen miltion nine hundred and eighty thou- and pounds. Q What its weight in silver? A. Three hundred and twenty-six million pounds. Q. How many carts wonld the gold load, allowing two thousand pounds weight to each? A. Seven thousand four hundred and ninoty-one. Q How long would be the train of these carts loaded with gold? ‘A. Nincty miles, Q. How many carts would be necessary to carry the amo :nt of tho debt in silvor? . A. Oue hundred and twelve thousand nino hundred and ‘our. Ss How long a train would the carts loaded with silver maker A. One thousand two hundred and eighty-three miles. Q What is the annual amount of interest of the debt ‘at threo and a half por cont? A. Twonty-four million five hundred thousand pounds. Q What is the individual proportion of it? A. Two pounds eight shillings and ten pence, Q How much is the proportion of debt to each family? A. Threo bundred and thirty pounds. Tho depreciation of paper during the years 1816 and 1816 averaged abort aixtzen and fivo-eighths percent, and the government three per cent conaols ranged between Ofty-seven and sixty-six. DISCONTENT AMONG THE PROPLE. During the greater part of the year 1817 tho country remaiued in a state of ferment, and it was estimated that liamont reduoed the estimated exponses six millions aud authorized in Jane, 1815, a loan for thirty-six miitions. In referonco to the negotiation of this loan wo extract the following from # journal printed at that time: — ‘The terms of the loan.of thirty-six millions of pounds were as follows:—For every one handrod pounds sub. seribed the government engaged to doliver in stock one | hundred apd thirty pounds, three per conta reduced. Ten pounds foar per conta, and’ forty-four pounds threo cent consols, The dividends upon the three pe reduced and the four p:r cents toommence fron April preceding, and upon the three per cent conaols (rom July follo iz, and the first half yearly dividends on tho three per cevts reduced, three per cont consols and four por cents tobe exempted from the property lax, Dis- count at the rate of four per cent por annum for pay- ments made in full. The tine of payment embraced a per od of ten months—ten percent month. The ttrat installment in June, 1815, and the last in March, 1916. ‘The day on which the loxn was taken thos: amounts of stock would have produced in the money market £101 15a. 2244, , With the discount for prompt payment, preinterest, & stituted what was called in stock jobbing phrase, the “bonus.’’ In consequence of ‘this great loan being required, the stocks wer lower on the 14th of June than they had ever before been, one occa- sion oxcepted. Five days previous tothe loan being offered, the stocks given for ono hundred pounds sub- scribed’ would have produced in the opea market the following amount ;— gz 2. @. £150, three per cents reduced m1 0 £10, four por cents...... 7 566 £44 three por cent consols... 25 10 0 Total. £107 10 6 ‘The contractors of the loan had also other advantages a8 to the interest on the stocks issued. As the intercat on some part of them actually commenced almost two months before the loan was effected, they had due £275,064 of interest before they paid ono farthing of principal; and taking the end of five months os the equated time of all the installments they received forthe first yoar, an additional oxtra interest amounting to about £1,040,000, ‘That is, the interest that was paid on the stocks ixsued for the money the contractors had engaged to pay produced to them the sum of £1,354,054 over and beyond the interest on the money roally paid into the treasury. The amount of stock created by this loan of thirty-sir millions of bank paper, which was itself at a discount of thirty per cent, was as follows:— Three por conts reduced. Four per cents... ‘Threo per cont consol PEACK RESTORRD—DEBT THR LARGRST—FINANOIAL CONDITION DEPLORADLE. The battle of Waterloo sottied the Napoleonic struggle ‘and again restored peace to England, but loft the finances of the country, as alroady indicated, in a mdat deptora- ble condition, The groat emigration to Paris, after the restoration of Louis XVIII, the unfavorable state of ox- change, the stagnation of trade, the depression among agriculturists and the morcantile ombarrassmonts, all conspired to paralyze speculation and to keep down the British funds, which, in August, were quoted at 663¢. Towards the close of the year, however, a rovival was experienced. Confidence began to show evidences of ro- suscitation, and three per cent consols, fecling the influ. ‘ence of reaction, rose to sixty-two, and specie doclined to below a preminm of seventeen per cont, tho Chancetior of the Exchequer having recommended Partiament to remove the bank restriction, and compel the Bank of | England to return to specie payments by July, 1816. Tn the year 1815 the national debt of England culminated, having reached the enormous amount of £861,000,000, which would make nearly $4,150,000,000 STAGNATION OF TRADE—AGRICULTURAL INTERESTS SUFFERING. Although there was a cortain dogree of confidence felt by the people that the nation would ultimately overcome ts difficultios, and that the wolght of the debt would not | carry ite eredit entirely beneath tho surface, still there was a depression in commercial circles and a stagnation of trade, which it seemed difficult to shake off or to roin- vigorate, This waa the condition of things at the com- mencement of the year 1816, and an idea of the then existing state of the agricultural interests, and the way it was aifected, may be obtained from the following ex- tract, which we take from a London paper of March 10, 1816 :— We have in former papers considered the important | question of the present distress, and the actual condition of the farmers is too important not to have failen within our distinct view. They cannot sell thelr corn at a price a indemnify them for the rent, taxes, rates and cultrva- tion. It is totally impossible that at the peace price of corn the farmor ean continue to pay the war taxes. But the most grievous barden upon the farmer are the poor rates, which in many parishes are as much as ten | ebillings in the pound of the rent; so that if a farmer am for his rent, he pays £70 for the poor. In Huntingdonshire, the clergy- n and church wardens waited upon a neigh! 1g ice, and after informing him that all the farmers in parish but one had thrown wp their farms, asked re now to support the port “The next parish must support them,” replied the magistrate. said they, “the noxt parish is nearly in the sam To give a still moro impressive idea of the distroas which the people suffered, we condonse the following extract from a speech made in Parliament by 0. C. Wostern, Esq., member of the House of Commons from Essex, He said:— In the county of Norfolk six hundred and seventy ba‘lable writs were issued in 1816, aud the number of exe- cutions or restraints during that year was one hundred and seventy-four. Inthe county of Suffolk the bailable Writs and executions amounted to eight hundred and Hifty; in Worcestershire to eight hundred and ninety; and of the two hundred and sixteen parishes in that county, one hundred and eighty six were in arrear for taxes dur- ing the year 1815. “In other countios two-thirds of tho hes were in arrear, In one parish every individual, with a single exception, was wholly ruined, and that the man who lad ggutinugd (9 austain binwelf was caligd | nearly three mill ong of farmors and mechanics were out 0° employment. So great was the discontent among tho peoplo Uhat Parliament found it necessary to suspend tho habeas Gorpus aci. During the continuance of thes troubled, Which exiended ovor a period of about threo rer ga tou six hundred insoivents were ro- turned; unpaid liabilixes amounted to nearly nine millions of ¥ A RAY OF ENCOURAGEMENT, Bet about the middie of the year 1847 the Buancial stross began to lighten and more caso was antici- pated. The price of brendsiafly was reduced, im- provement in the manufacturing districts was ap- parent, there wag strong talk of a reduction in the taxes, the mint had received orders to coin a large amount of new gold pieces of twenty shillings and t-n shillngs valuo to be called sovereigns and half sovereigns; the Bank of Englaud gaye notice that after October 1, 1817, it would pay spocio for all its notes beariyg date previous to the Ist of January of that year, and the premium on the precious metals was reduced to nearly two and a half por cent, three per cont consols rose from sixty-five to eighty-four, confidence showed signs of being weaned back, and altogether the prospect at the close of 1817 was rathor encouraging. THE BANK OF ENGLAND CURTAILS8 ITS DISCOUNTS. Thore were very fow financial movements to mark tha year 1818. The price of specio, with slight fuctuations, was about the samo as the year provious—averaging two and five-cighths per cont premium, Tho three per cont consols roae to 81; the debt was reduced to £3843,000,000, and tho circulation of the Bank of England reached its highest point, which was £30,045,680. But towards the close of the year tho cheering prospects which had ap- peared at the commencement began to be clouded. On the 12th of December the bank commenced to curtail its discounts, and throw out immense quantities of bills which had been presented by first olass bankers aud re- sponsible individuals, and upon the announcement of its intention to continue the work, the clouds began to gather, angi it was casy to predict the approach of a finan- cial storm. MORE FINANCIAL DIFFICULTIRG ARISE—THE TRY- ine Thee. It was found, in 1819, that the government finances ‘wore again in a most deplorable condition, and that the Fesources wero inadequate to moot tho oxpenses, A Knowledge of this fact weakened the confidence of the people, Many now began to distrust England’s capa. ability to moet her obligations, and a report from a select committee of Parliament, appointed to inquire into the Condition of the country, was thus spoken of by a Lon- don paper :— The Anance fact, virtual natsioal bankruptcy. We ‘owe about’ £840 000,000 liquidate which we have £1,683,784—that isto say, we have au annuity which may redeem our dobt in the course of about six hundred years, always supposing that w to onjoy an undisturbed peace for all that periods And what made matters appear worse tho following Agures wore put forth as the estimated oxpensos and ro. ceipts for the yoar 1819 Exproniivures......... Revonue, .. Doficioncy..... THE OLD SCENES RE-BNACTRD BASKRUPTCERS, Tho tong looked for rotarn to tho specie basis which had been so often promised, and which was to have taken place on the Sth of July, 1819, was again postponed by act of Parliament for the fourteenth timo since 1797, coin again rose to nearly four and A” half per cent premium, and thres per cent consols sunk to 65. Tho ports had been closed against the importations of breadstul™s, dis- tross again visited the manufacturing districts, trade was suspended, bankruptcies a4 plentiful as in former years followed, disaffyction arose, and tho old scones of RiOTS, MOBS AND meetings, petitions, threats, riots and blood- shod wore re-enacted, It was during thia year, 1819, that it was sald tho fate of Great Britain hung upon a hair, Take it altogothor it waa the most oventful twolve months that England ever passed through. The house of Rotha- childs finally, however, came to hor rolief and loanod the government twelve millions of pounds at the rate of £02 188. 8d. in paper foreach one hundred pounds of se- curities. This tended in a moasure to restore confidence, and the three per conts rose to 68; but as the discontent ot the masses was still manifest they receded again: to 66, SPECIE PAYMENTS. Mr. Vansittart had on various occasions expressed him- self in favor of romoving the restrictions and compelling the Bank of England to redeem its notes tn coin; but the bank, as itappoared, possessed more power in Parliament than tho Minister of Finance, and the privilege of suspon- sion was continued. A secret committee on the subject Was appointed in May, 1819, which, as appears by their Teport, deprecated any immediate alempt on the part of the bank to pay its motos in apecie, as a moasuro which, by compelling a great reduction in ita inaues and & consequent diminution of capital, would not fail to ag. gtavate materially the commercial distress in which the country was again involved. Tho committee recom. monded that tho motalli« circulation should be restored by slow and cautious approaches, beginning with tho sub- etitution of uncoined bullion for coin at fixed high prices, which could be gradually lowered till the rate of ox change would allow the general uso of specie a the mint value Th 1420 spocio bocame comparatively plouty; but aa , TONE 26, 1... - ¥ “ 2 to redeem pe eee However, was abundant, and bills were readily at three to four per cent, which contributed to produce & revival of trade and the consequent employment of the masses, Tho government finances were not, however, in a aatiafactory condition, as the last budget that the expenses were atill largely in excess of the revenue. ‘The three per cent console notwithstanding were buoy- ant, and rose to seventy under » debt of £886,240,088, - A calculation was made of the gross expenses of the government during the of George TIL, who had ‘nd it was shown that the aggregate amount expended was £2,357,000,000, about $11,223,000,000, being three times the value of all the property in-the kingdom. GOOD TIMB, COMING. ‘The good time that England bad 6 long been atrug- Ving for waa. now——1821-—opening to her view. The Bank of England, notwithstanding it had an activecirou- tation of twenty-three millions of pounds, sterling, equal. to about one hundred, and ten. millions of dollars, ne- turned literally to specie paymenta after a suspension. of twenty-one years, Consola wont up to. 76}4,thehar- vosts were abundant, trade waa flourishing, employment a8 noarly-equal to tine. demand therefor, the people be- came more reconciled, if we omit the, diMcylties which were produced:by,the trial and death of bis discarded, Queen, to. the. new. King, George the Fourth, and the country rapidly assumed » satisfactory and prosperous. condition. THB CHANCELLOR OF THB BKCHEQUER AND THB SINKING. FUND SYSTEM. ‘Tho sinking fund system, as before. shown, had beom entirely, dostroyed,.and it became evident that England could not, and probably would.not, evor pay.the. principal of hor national debt But. wo. may, here romark that although Mr. Vansittart, as Chancellor of the Exchequer, did not display any vory brilliant financial, genius, if he had carried out to tho letter the sinking fund policy of his predecessor (Mr. Pitt) it would probably have produced upon the British government dusing the trying times from 1815 to 1819, the same effect that attended the placing of the last atraw upon the camol’s beck, Itmay be said, therefore, that Mr. Vansittart actually preserved the faith of the nation by his policy of borrowing from the sinking fund, when government credit was lowest, instead, | of endeavoring ‘to collect more revenue from the over- taxed people, or offering loans at the ruinous rates of dis- counts to whieh the. public stocks were often driven. THE NATIONAL DEBT OF ENGLAND AT VARIOUS PERIODS. Tn 1822 eonsols rogo to 8134, and there waa no chock to tho increasing prosperity and rapid accumulation of wealth Tho following table, showing the national debt of England and Ircland—funded and unfunded—on the 6th of January in each year, from 1800 to 1822, and the amounts contracted aud redeemed, may prove intereat- ing:— ESSE Eee 2 BEEP E ET ELS E238 SEEeS 3 s B3e33 S 3 Be eRe! 33e58 EEE Se BS FS ee i 382 28 HH 9,456, 1 402,20 41/480,311 81,103,714 ie 17,359,387 THE COUNTRY SEEMINGLY PROSPEROUS. Financial matters had assumed « shape in 1523 which seemed to render the credit of tho country perfectly socurg, The debt bad beon brought down to about £834,000,000, and tho budget of the Chancellor of tho Exchoquer Was a very satisfactory oxbiblt, Tho receipts and oxpenses during the year 1823 were as fotlows Receipts. . £57,672,990 Esponsoa: borDoR O18 Surplus EXCESSIVE SPECULATION. There was an abundance of money which was offered at very low rates of interest, This caused a rago for speculation in any and almost overything that invited capital. Not even the South Sea bubble, whon at its extrome height, presented such # scene of insane eagor- ness as that which prevailed for investment in stock enterprises. Tho greatest excitement was in mining shares, which not unfrequently advanced £250 ina sin- gte day, and some shares, the par valuo of which was £70, rose to one thousand five hundred guineas. ‘the speculative furor contined’ throughout ‘the year 1824. Nothing transpired to chock the wild enthusiasm ‘which had soized the brains of thon- sands of individuals who sought, fortunes im. « hurry, and the picture of prosperity remained’ prominently in view. During the your the three por cent consols rose te 06, which was unmistakable ovi- donoe that the work of inflation had boon going on toan oxtent which would sooner or later produce trouble in tho mone; asd fun cost ki [nt of surplus capital, howovor, kept off tho day of reckoning, aud tho oponing of tho yoar 1825 exhibited the speculators as rampant as evor and as in- dustriously at work shoving forward thoir now schemes. A London paper of January 10, 1825, contained a list of one hundred and fourtoon now projects, principally min- ing, requiring an aggregate capital of upwards of ninoty- five millions of pounds sterling, or noarly four hundred and fifty millions of dollars. The papor circulation of the Bank of England was about twenty millions of pounds, and that of the private and joint stock banks was im- mense. As the year wore on it became evident that a reaction could not much longer be averted. Indications arose that a revulsioa was approaching, and before Do- comber the whole speculative bubble burst, THE ORRAT PANIC OF 1825, Tho mining companics which had been organized had located their minos in Mexico and South America, and ag some trouble had arison botweon England and tho first named country, the public began to think that their in- vostments would not bo likely to roturn the immense profits they had anticipated, Tho result was a panic, Tho money preasure became excessive, and all the at- tompts of the government and the bank to rellovo it ‘wore entirely unavailing. Tho rush of the people on the ‘banks was torrific—so great, in fact, that those which wore woll supplied with gold had not time to count. i and wore forced to doliver it by weight, Forty-five of he tcountry banks wore competed to stop, and many failed outright ond became bankrupt, Tho panic was general, and it was atimated (no doubt accurately) that ovor olevon hundred fail- ures among bankers, brokers and merchants took place during the month of Decembor, 1826. Bofore the year ended, however, monctary matters again as- sumed a manageable position but thousands of wrecks mado by this short Agancial hurricane wore plainly visible on overy hand, asso many evidences of the foily of in- flation and the insanity displayed the people in th the bubioles ‘hal ont oeiphtoncd by jouse Rebel Regiment at fom the St Louie Republican, June 2 ie une The fire Missouri regiment, comprising ten mht com. panies and numbering about seven tundred officers and privates, having been surrendered by Kirby Smith and afterwards paroled at Baton Rouge, arrived in this city by the Maria Denning, Tuesday evening, and yesterday took the oath of allegiance before Captain Richi , This rogiment has been four years in tho rebel serv’ and is composed eutirely of Missourians. It achiev considerable fame the confederacy fot bravery and endurance, and was complimented by Kirby Smith as the best regiment that Missouri had furnished to the rebet army, Five per cvnt bonda, June 22, aoa F ela be Bumpar, Juge 9, 1666. ‘The stock market has been extremely dull during the past week, end on the whole quotations at the close ahowed a alight decline; but, considering the absence of absence of a greater recession is ing rate ranging from 1-16 to % percent per day, but it was particularly 0 on Saturday, when as much as 36 waa paid. The extrome quotations on the street wore:— a 140 firm, and the further advance of five-twenties in Europe will be likely to. strengthen them tm some degree, although a rise in gold would assist them more. "The interest on the following items of the gold bearing indobtedness of the government will be due on the 1st of duly :— > Bix per cent bonds of January Bix per coat bon March 31, 1! Five per cent bonds, June 14, 1858. Six per con bonds, weluners vers Six por cent bonds, July 17 anc gust Bix be cent bonds, July 17 and August 5, exchanged for seven-thirty notes... wp per cent bonds, Texas indemnity, n Bix ver cent onda, March 3, 1863... Total for cach YOats...04++++reeee senses «19,507 B14 ‘The half-year's interest payable on the 1st proximo will therefore aggregate $9,753,907. The off-ct of this payment has, however, boen discounted, and, as tn England on the payment of the quarterly dividends of the Bank of England, although a suddon increase of monoy in the hands of the public takes place of froma fifth te two-fifths of tho entire issues of the bank, ft never hag any influenco upon prices, and im ® very few weeks, remarks an English | writer on the subject, it has again sbrunk into its usual dimensions by the consequent reduation of tho de- mands of, borrowers. Tho volume of the curreney fluc- tuates in like manner in the agricultural districts of Eng- Jand at difforont seasons of the year, Fullerton, in his work entitled “The Regulation of Curroricies,”’ says, that it is always lowest in August, and rises generally to- words Christmas and obtaina its greatest elovation when the farmor has to pay his rent and summer taxes, and when he ia, therefore, in the greatest need of loans from country bankers. Those gariations occur with the same regularity as the seasons, and with just as little disturb- anc? as the quarterly fluctuations of tho notes of the Bank of England. As soon as the oxtra payments have been completed, the superfluous currency, as certainly and iunmediately, ig reabsorbed and disnppears. ‘Tho pcriodical payshent of the gold interest on tho public debt has tho sage effect upoa the gold market in rontity as tho payment of tho quarterly interost upon the public dobt of England has upon the British money market, and as the paymentof the bank, railway and other dividends bave upon our own money markot. Foroign exchange has been dull and rather weak, under tho expected exportation of a larger quantity of cotton than is likely ¢> take place this year, as well as a pre- vail'ng disposition on the part of many of tho impor- ters to dofor their remittances, in the hope of a lower price for both gold aud oxchange. Hance the shipmont of only $357,550 in spocie during tho weok. ‘The excoss of imports over exports is, however, increas- ing, the gold’vatue of the formor for the wook onding Jano % having boon $6,119,039, while the exports were valued at Jess than half that amount in currency. Bankers’ bills at sixty days, which sold at 110K in the early part of the week, wore negotiated at 100% a 109% before the close, although tho asking rato over the counter waa never less than 109%. The par of storling oitchange is within a fraction of 10934; 80 that bills on London are still at a premium, and they are s0 be- canso a greater money value has been imported than exported. The promium, whilo it offers an extra Profit to thoge “~ ‘export leads to a diminution of profit to those who import; for, whereas the exporter draws for the price of bis goods and gains the premium in addition, the {mporter has to pay for his fst pr the premium as well. The imports and exports are doter- mined, eays Ricardo, by the metallic pricos of things, net by paper prices, and it is only when the paper ia exchangeable at pleasure for the metals that paper prices and metallic prices must correspond. Our foreign trado is conducted entirely independently of the value of tho paper doliar. What is called an unfavorably exchango, as’ im our cass at present, docs mot, however, stimulate exports, unless by acting on prices, and, owing to the scarcity of produce in tho country, these are'slow to yield. Tho more differ. ence in oxchange in favor of the exporter is not suffi. cient to overcome & more material difference in prices be- tween the home and foreign market. If the exports rose to tho level of the imports there would soon be no pre- mium on bills, & the equilibrium of ing. ports and exports, remarks Mr. Mill, and con seu disturbances of the exohaages may be considered as of two classes—tho one casual or accidental, which, if not on too large a scale, correct themselves through tho premium on bills, without any transmission of the pre- ctous tidbits) Tie othor arising from the genoral stato of prices, which cXnot be corrected without a subtrac.” tion of actual faoney from tho circulation of one of the countrics, or an annihilation of credit equivalent to it, for the mere shipment of bullion, not having any effect on prices, is of no avaii to abate the cause from which the disturbance proceeded. The drain of apecic hence to Europe therofore in no way tends to Obviate its farther drain, and it will not be till the cot- ton crop of 1866 is ready for shipment—say in October in that yoar—that our foreign exchanges will really turn in our favor. Meanwhile we shall experience a steady re- duction of our specie, How far it has boem reduced since the suspension of coin payments may be estimated from the tact that from the boginning of 1862 to the ond of May, 1865, our exports of gold and silver from this port alone amounted to $173,582,996 (one itan- drod and seventy-three millions five hundred and thirty. two thousand nine hundred and ninety-five dollars), And this, of course, is exclusive of that taken out of the coun. try by travellors as well as of the amount sent across the border to Canada. The oxports in quostion wore distri- buted thus:— 1862—Total shipment trom Now York. 1863—Total shipment from New York. 1864—Total shipment from Now York 1866—January 1 to May 31 1861, done B)940,339 Septom: March 2, 1861. ose ees 4,600,000 1864. 1866. 5,459,079 8,184,858 ri 8,015,367 1,023,201 1,800,650 '381,913 1, 5,888,077 871,249 2, 6,460,990 1,266,071 1, 6,533,100 =- 6,208,881 1,947,329 - 8,405,261 1,001,813 = .s+ve. 8,085,919 8,480,385 2,885,208 ~ October... 6,707,519 6,210,158 2.517, 121 ~ Nov 6,213,261 6,438,963 7,267,662 - Dec 8,673,112 6,250,063 6,108,177 =- Total. . $60,237,021 40,764,088 60,825,621 19,716,287 Tn a future issue wo shall state the import movement, and quote other statistics which, by Comparison, will show conclusively how much gold we have lost since the Suspension, and what amount still romains in the country. With reference to the cotton supply question, which is at present one of considerable controversy, and the source of a multitude of contradietory opinions, the New Orleans Price Current of the 16tn has the following com- munication, in which the total crop of cotton now in the Southern country, both east and west of tho Mississippi, is eptimated by a professedly competent observer not to oxceed twelve hun. dred thousand bales, and the crop for the present your fot more than five hundred thousand baie. The mata- ral inclination of tho writer appoara to be advorso to wodortating tho provable quantity available for com Michigan and Pittsburg, 0814 ; Rock Island, 10134, fr BY papbobilitieg aro ib fia £ | “erp of coll se ‘pop 800/000. ""Total 1b ‘the ladpmlagiot The closing quotations at the ov: exchange were» B:( vor, 10834 ; Erle, 16545 68% ; Hlinols Central, 124; Cleveland four last Saturdays were:— ‘ June 8, Tune 10, 7. i sts aa a 7 5836 0° 8 ae 4 18 ES 63 13 085¢ m 05% 4K Rogi acs 110 Five. dwontion, sou ita 103% 1039 Five-twenties, ro; pt 103 _ ior ae a Soven-thirties, 2d sories.. 99% 09% 208 0% ‘The following national banks have been suthorized for the week ending June 2%, inolusive:— fame. il '200,000 Schuyleruville, N. 00,000 Pinto Bloomfield, Towa. 55,000 Mercantile “Hartford, Conn. 500,000 National Cotnmoreial, Albany, N. ¥ 500,000 pleat betrenpehyn ver ie R 600,000 Commercial & Farm. Baltimore, Md. since Gity. PoughKeopsi 200,000 Ba ae 200,000 150,000 120,000 iiss ‘a3 Boos + Tan'oos eee 1,500,000 500,008 500,000 Delaware Cit} Delaware City, Dei 000 First N. Bk. National Hamilton, Austin, Nevada. . ‘Hamilton, N. Y.. Aggregate capital... Previously authorized r Fann yo cinivaronute cpial of 8320, 024,008 Amount, of clroutation issued to national banks for the week +. 2,261, Proviously issued. . 2 140/797) Total cisculation issued to date.......+.. $143,066,875 The National Farmers’ and Planters’ National Bank, of Baltimore, Md., and the Merchants’ National Bank, of Now Bedford, Mags., have beon designated by the Secre- tary of the Treasury as additional depositorics of the public money. b It is not true that Messrs, W. T. Coleman & Co, a@- vanced money to Smith J. Eastman & Co. Tho report probably grow out of tho statement that Mr. Mott Robin- gon had made such advances. The following stocks and bonds were sold by Adrian HL Mutter, P..R. Wilkins & Co., on Saturday:— ‘Trustees Be ee tan Stock of the city of New York, of 1883, inter quartorly........60 06 5,000 Volunteer foldicra’ Family ind, six 123 Mechanic's Bank, $25 10 pa York and New Haven Savorpay, June 4—6P, ML * Asans—Raceipta, 9 pkgs. The market was dull, and Only small sales were reported, at $7 508 §7 75 for pote and $8 for pearls. Braavsrvvrs.—Receipts, 15,745 bbls. flour, 181 do., 808 bags corn meal, 58,722 bushels wheat, 60,742 do. corn, 6,000.do. oats, 6,700 do. rye, 165,000 do. malt and 3,280 do, barley. Tho flour market was dull and heavy to-day, and prices ruled in favor of the buyer. There was no de- olino, however, though at the close there wore few buy- ors at our outside quotations. The sales were moderate, comprising 6,000 barrels at our quotations, the market closing heavy. Rye flour continued dull and prices were wholly nominal. Canada flour was-also dull, and prices ruled in favor of the buyer. Tho sales were 360 bbia. Southern flour ruled dull, but prices were nominally the same. The sales were a ae bbis., at our quotations, Corn meal was stoady, with sales of 300 bbls. Brandy- wine at $5.15. We quote:— Superfine State and Western flow & . 3 Extra State 600a Ss Cho'ce State. 62a 6 Seen er Be tee be xtra round hoop Ohio, a 6850 815 Extra St. Louis.... 8000 1200 Common Southern. . 70008 176 Fancy and extra do . 7800 1200 Common Canadian. 6050 635 Good to choice and oxtra, 6408 iS Ryo flour (superfin 50a 625 Corn meal, Jersey. 4250 476 Gorn meal, Brandywine “bigs 5 Corn mi Brandywins incheons. . Tho wheat market was' {n full sympathy With four, and for milling and for ex; Pe ratuee FavorGN the bayer Still there was ve cided reduction, tl sales could not have been made po ters clone ealee. wero condned le 3 $131 tor, Chicago apring, $1.30 9 $1 40 for amber Mil- $1 73 a $1 75 for ambor Michigan, and $1 36) for Racine spring. Rye remained dull, with sales 2,000 bushels Western at 87c. ley was quiet, and we hoard of no sales, Malt fall, but sie yr —_ lly unchanged. Corn demand an con advanced le. a 2c., with sale: Boo. a in. oe coin, Western, mixed c, for unsound, and 80c, for sound Wostern mixed. Gata wore also in'domand, at an advance of 1. a 2c., with fair sales at from kd to T7 3c. for Weatorn; 630. for Canada and 8c. for Stato; 1,500 bushels Canada peas wo Nmathe Tho market was firmor, with small salos at 460, 0 60c. a was quiet. The sales 400 b Py Fn ‘should have road 4,080 bags, at $1 47% in bond. ‘Wo also note sales of 3,600 ; gold, Dae Ra erie ealés of 76,000 Iba. at 20c, 0 200, for Baltimore, Dotrolt and Pores tons soda ash at 2i(c., Davas,—We note ash ; ‘a $2 271; 20,000 tone aeeeael 2000 ta 38 vA ! 4 i ‘fo ‘tous crude brim. Roe private torme; 10 Pleaching powders, pri- vate terms. The market was buoyant under an active de. mend, ond ponds in advanced le, per ey Nard r ‘. for - salos ‘were about 1,000 bales, closing at dtings. We QuoweT tad. Florida, Mobile. N.0.€T. Ordinary. 2 80 SI a Middlit a“ % 3 g ist se old ist 1,600 quintals dry cod at $6 76. though the offerings were mode- i same wore fier, ‘“ 7,000 rato. Tho ongagomonta Woro:—To Liverpool,