New-York Iron Market-Impetus to Industry. 497 sources of supply so numerous, that prices few months, numerous side lines from have, until very recently, continued main-trunk rail-roads have been contemmuch reduced. But for this we should plated, and all the indications are in fanot have made so much progress in our vor of the creation of many new and exinternal improvements. This favorable tensive companies. In this country the state of things has continued until lately. consumption of iron is steadily and rapWithin the past six months there has idly increasing. Our iron manufacturbeen a re-action in the iron market, and ers are by no means idle. Within the a very rapid rise has been realized. past year or two, since any important This has been produced by a variety of modification of the tariff in favor of procauses, the most prominent of which is tection has been entirely out of the questhe active demand for iron for the con- tion, the iron manufacturing interest has struction of vessels. It is intimated that been gradually recovering from its prosthere are at least sixty iron steamers tration. The recent improvement in building in Scotland, and about fifty in prices for the raw material will be of England. Independent of the demand immense advantage to those engaged. for consumption in this way, the railroad movements recently made in Great Britain are calculated to strengthen the current rates for iron. Within the past The annexed comparative statement shows the advance in market value during the past six months: Quotations for Iron in the New-York Market. Pig, English and Scotch Bar, English refined.. This is enough for the present. As the season advances, and the different projects we have alluded to become matured, the demand will increase, and, as a matter of course, prices experience a much greater improvement. In the face of this favorable, and, to the iron manufacturer, encouraging state of things, with what grace and justice can the cry for more protection be kept up? The rise in prices on the other side is equal to an additional duty of full one hundred per cent. What more can be desired? The answer may be, that this enhancement of prices is not permanent-that it cannot be depended on-and it would therefore be dangerous to embark capital in establishing iron manufactories upon such a basis; that the only guarantee is in a high tariff, &c., &c. This is all very well, so far as it goes, but it is a very contracted view to take of the matter. The world is all alive with enterprise. The production of gold in California and Australia has given such an impetus to industry, and opened so many new channels for commerce, that a legitimate demand has sprung up for all the staple articles of agriculture and manufacture far beyond anything ever before realized in the history of the world. The progress of improvement has been so rapid VOL. XIV. 6 that the remotest corners of the universe have been opened, and the shrill whistle of the locomotive, the splashing of steamships, the white sails of our clipper-ships, have been heard and seen in places which, a few years ago, were almost beyond the limits of civilization. In the extension of commerce; in additions to the commercial marine of all the great maritime nations; in the increase and distribution of populations; in the contraction of space by rapidity of communication-in fact, in everything calculated to augment wealth, strengthen prosperity, extend civilization, and to build up a magnificent system of commercial intercourse, which will open every port and remove absurd restrictions, more progress has been made within the past five years than in any previous century. The impetus all this has given to the consumption, particularly of iron manufactures, is the direct cause of the favorable change in prices we have recorded above. The demand has overtaken the supply, and it will, without doubt, soon outstrip it. We look for a much greater appreciation in this article, and anticipate increased activity among manufacturers throughout the United States. It is a long lane that has no turn. We take the following paper upon the gold productions of the world from the Economist, edited by Mr. Kettell: When the gold discoveries were made, and confirmed by the actual receipt in London and New-York, of unwonted quantities of bullion from the distant regions of the earth, a rise in prices and a disturbance of the relative value to all productions, which gold for so long a period had sustained, was at once considered as certain; and most great financial agents throughout the world, prepared for that expected change in a manner so hasty as to accelerate the operation; that is to say, gold was avoided, and all other productions, including silver, sought in exchange for it. Silver was the first to rise, but it soon subsided to its ordinary relative price, and gold accumulated at the great reservoirs in large amounts. The leading points for these accumulations were the banks of New-York, of London, and of Paris. Gradually these growing reserves have promoted speculations and stimulated rising prices; a natural result of which is a flowing of other products towards those points where they command the most gold, causing thereby currents of gold to set from the points of accumulation outward towards those remote regions where raw products are produced. This is the natural mode by which the new supplies of gold will become distributed throughout the world into all the channels of circulation. The following table shows the amounts of specie in the banks of the three great commercial and financial centres at different periods: Quantity of Specie, expressed in Dollars, in the Banks of New-York, London, and Paris. Banks of New-York. Bank of Bank of England. Total, three Bauks. Rate of Interest in London. $5,850,424.. $46,588,339.. $73,143,717..$125,582,480..3 9,969.750.. 83.848.000.. 11,002,800.. 93,003,470.. 104,106,104.. ..3 81.984,000.. 175,801,550..3} 7.985,954.. 107,714,800.. 12,000,000.. 90,455,766.. It will be observed that the accu- and increased consumption of almost all mulation went on step by step until raw produce, and increased disposition midsummer of 1852, or about four to export capital from the great centres months subsequent to the reduction of to those places where with safety it could interest to the lowest point. 2 per cent., be employed to better profit. by the Bank of England. This accumulation was accompanied by rising prices The following is a table of current prices in London at different dates:— Specie in New-York, London, and Paris-London Markets. 499 Now it results that the high prices caused by accumulations of gold at financial centres, stimulated the production of all other articles, and put them in motion towards those common centres; hence the rise in freights and great activity in transportation everywhere manifest. The result of this would necessarily be a drain of gold from those centres in a more rapid ratio than ever before. Because as gold, by raising prices, put in motion every branch of production, so all these branches once in motion would react upon the gold with redoubled force, or in the proportion of the value of all other articles to gold. Thus the receipts of gold in Great Britain, by a recent report, were for the last six months of 1852, £11,146,000, say $50,000,000. At the United States Mint they were $30,000,000, and the reduction in the banks as above is $34,000,000, making together $114,000,000, from which should be deducted the quantity sent from the United States to Great Britain in that time, $7,000,000, and there remains $107,000,000, which has gone, whither? The supplies of gold in Great Britain and in the United States were, for the last six months of 1852, as follows: Feb. 28. £ s. d. £ d. Jan. 22. £ s. d. 3 12 0 4 0 0 3 15 0 080 0 14 6 0 0 3% 022 1 15 0 007 2 15 0 250 600 010 6 0 16 6 0031/2 0 2 6 2 7 0 009% 310 0 4 10 0 610 090 0 16 6 003%2 028 2 5 5 0 0 10% 3 10 0 3 10 0 3 10 0 0 0 2% 1 16 0 .... 0 0 3 290 0 0 3 2 13 6 .13 0 0 16 0 0 In England, from Australia.. Total...... 17 10 0 $21,475,732 23,994,180 $45,469,912 Of the quantity received in the United States about $7,000,000 went to England, and has thence, in discharge of the large quantities of goods purchased and consumed by England, been distributed throughout the world. As gold has become comparatively cheap in England, and left it for other countries, its export thither from the United States has gradually fallen off. The reason of this appears to be that the inflation which causes gold to leave England and Western Europe, not only checks exports to this country, but induces continued exports of those articles of produce, for which they are our best customers; that is to say, although there has been inflation here it has been greater there. The efflux of gold from Paris has been larger than from England, reaching $24,000,000 since last June; if we look at the table of discounts by the French Bank, we shall observe how much more rapid has been paper expansion, fomenting those immense speculations of which Paris has been the theatre. that the discounts of the Bank of France, discount from two to three per cent, Jan. 13, were f.316,000,000, being an and all the discount houses give notice increase of f.42,000,000 on the month; that 134@2 per cent. will be the rate and that to check the flow of gold out- hereafter "at call," it is quite time for wardly, a great curtailment in these the banks here to "snug ship." items must take place. The first effort The efflux of gold is no doubt but temof the screw was the fall of pig iron porary, the mere effect of going a little from 80s. to 60s. or 25 per cent. Now, too fast, whereby a slight re-action is simultaneously with the expansion in given to the progressive depreciation of those two banks, the institutions of New- gold as compared with other commodities. York raised their loans from sixty-four The impulse caused the gold to distribute to eighty-five millions, and this enor- itself over the continent a little faster mous expansion here was sustained only than the mines produced it, great as that by the expansion there. Hence when production was. the London Bank increases its rate of FACTS AND CONSIDERATIONS WHICH RECOMMEND THE ESTABLISHMENT OF A LINE OF STEAMERS BETWEEN VIRGINIA AND ANTWERP. Agricultural Productions of Virginia as per Census of 1851. Cord wood, Oysters, Fish, Peas, Beans, Potatoes, Garden Vegetables, Fruits, and Melons, estimated at not less than... 33,607.362 00 2,156,073 00 5,000,000 00 .$86,249,314 00 Amount brought forward.... $1,686,145 74 port trade are now made to meet, and where the great mass of our commercial payments are made, is thereby enabled, through her exchanges, to exert a controlling influence over our financial interests, which keeps down prices here, and raises them correspondingly there. Six per cent. estimated upon the value of our remaining productions not embraced above, viz.: $69,861,457 43, shows a further loss of. Which, added to the foregoing, exhi- 4,163,371 39 $5,849,517 13 These estimates, founded upon the late census returns and such other reliable information as could be obtained, are believed to be sufficiently accurate for all practical purposes, and to fall below rather than exceed the actual loss which a more rigid statistical analysis would exhibit. For want of any certain data by which to ascertain it, we can only approximate the amount of loss sustained upon the domestic consumption of articles brought Virginia and Antwerp Line of Steamers. into this state from elsewhere. It is believed that of such articles we consume an amount in value fully equal to that arising from the sale of our own productions, viz: $16,861,457 43. Upon that amount the controlling influence of New-York before mentioned equally operates, and consequently produces the same depreciating effect. We may therefore properly estimate 501 senate by the select committee, and its ultimate effect in opening and promoting our direct trade, have applied to Congress for aid in the construction of a line of steamers between that city and some port in Belgium. Not content with the monopoly of nearly all the existing lines of our foreign commerce, that grasping city seeks with eager haste to pounce upon and appropriate to her own ex the loss arising from this cause at $1,686,145 74 clusive benefit, or to break down by To which may be added for profits to the Northern factors, and incidental charges, at least 12 per cent. more..... Making the whole loss upon domes- And it exhibits an aggregate annual loss of.. opposition, every new line sought out and suggested by the enterprise of 2,023,374 89 others. For want of the necessary statistics, 3,709,520 63 nothing is said about our loss upon the value of the mineral productions of Virginia, which, it is believed, amounts to several millions more. 5,849,517 13 $9,559,037 76 If the foregoing estimates are correct, they show clearly why it is that the Virginia merchants cannot, except to a very limited extent, import directly from abroad. The merchant of the North enjoys an advantage over ours of at least 12 per cent. additional profit (6 per cent. on the export and the same upon the import trade)-a per centage more than twice as large as that usually charged by the import dealer upon the cost of his goods. This gives to him an absolute control over that entire branch of trade. The great benefits resulting to the northern merchants from our present commercial vassalage is fully appreciated by them, and hence their constant and vigilant efforts to retain it. No sooner had Virginia begun to move in this matter by the call of a convention at Old Point, for the purpose of considering the best means of promoting our own direct foreign commerce, than did those merchants commence the construction of five first-class steamers to ply between their port and ours. This could only have been done to prevent the achievement of our commercial independence, and secure to themselves the continued enjoyment of their present monopoly. But this is not all. Within the last two weeks, citizens of New-York, no doubt stimulated by the apprehension of the passage of the bill for establishing a line of steamers between the waters of Virginia and Antwerp, reported to the Will Virginia continue to remain passive, and rest satisfied with the present effort to change and improve it? Great ruinous course of her trade, without an as are her resources, can she sustain so heavy a drain as from ten to twelve value of her productions every year?—a millions of dollars depreciation in the sum more than sufficient in three years to pay off her whole debt, and perfect all the great lines of internal improvement necessary to develop her own resources, and invite the commerce of other states through her borders. The bill above mentioned proposes to stop that drain without either charge or risk to the commonwealth or her citizens. Will she not avail herself of the opportunity thus afforded to accomplish an object so imperiously demanded by the best interests of her citizens? Before another so favorable can ever be presented for her acceptance, New-York will have stepped in, pre-occupied the line, and secured to herself forever all its benefits. At the present time, nearly all of the mails of continental Europe pass through The England and on to New-York. direction of trade ever follows the line of postal communication, and for that reason mainly is it that the trade between this country and Europe now centres at New-York. Let a direct communication by steamers be established between Norfolk and Antwerp, and we shall at once secure the whole of that portion of the continental mails which come through Belgium, embrac |