COMMERCIAL CHRONICLE AND REVIEW. COMMERCIAL AFFAIRS DISTURBED BY DIPLOMATIC DIFFICULTIES-SETTLEMENT OF THE OREGON QUESTION-COMMERCIAL IMPORTANCE OF PEACE BETWEEN ENGLAND AND THE UNITED STATES -MEXICAN WAR-RATE OF BILLS AT DIFFERENT PERIODS-CONDITION OF BANKS OF NEW ORLEANS PRICES OF PRODUCE IN THE NEW YORK MARKET-GRAIN AND FLOUR IN BOND IN GREAT BRITAIN-AVERAGE PRICE OF GRAIN IN GREAT BRITAIN, TWO LAST YEARS-EXPORT OF WHEAT FLOUR AND CORN IN NEW YORK--CONDITION OF THE PROVISION MARKET-FINANCES OF THE FEDERAL GOVERNMENT, ETC., ETC. Ir is to be deplored, that every few years this country is startled from its propriety, and commercial affairs are disturbed, checking the course of business and interrupting the progress of industry, by some untoward occurrence of a diplomatic nature, between this government and some other power. Three times in ten years has the peace of the world been endangered by disputes between the government of Great Britain and that of the United States; twice on boundary questions, and once in the affair of McLeod. When one reflects on the nature of these constantly recurring difficulties, the absurdity of the whole would be ridiculously manifest, did not the great losses they inflict upon commerce, and, through that, distress upon individuals, make them of too grave a nature. A question between Great Britain and the United States, in relation to the boundary of a piece of land on this continent is, in fact, so meaningless in itself, that it must excite surprise when it actually endangers war. The people of this country and those of Great Breat Britain form equal divisions of not only the same race, but, to a very great extent, the same people. Thousands of families are divided, one portion remaining in the British Islands-where their fathers for centuries back have dwelt-and the others forming new homes to themselves in the United States, and preparing to draw after them those who yet linger behind. The great object of the whole race is to enjoy the fruits of their own industry, and for every individual to be as secure in that enjoyment as society can make him. The whole continent of North America is open to the free ingress and egress of every citizen of Great Britain. He can occupy land where and when he will, with the most perfect freedom from taxation or interference from government. He is more unrestricted here than in his native land. He enjoys, in all respects, the same rights as those whose ancestors may have emigrated, perhaps, two centuries earlier. When, however, in the "pursuit of happiness," he settles a few miles further north than most of his neighbors, he is subjected to different rules of government, emanating from the parliament of Great Britain. If this is resisted, the whole welfare of the British Islands, as well as of the whole Union, becomes convulsed, trade stops, and vast expenditures are incurred to enforce the supposed right of imposing laws a few miles more to the southward or the northward of a given line. It is, in fact, a civil war. The race being divided into the monarchical party, which occupies the British Islands, and the republican party in America. For this difference of opinion they fight, not that either government is detrimental to the happiness of the people that live under it; because the great prosperity of each country is conclusive evidence that each government is good, in its way. The United States prosper the most rapidly, because the resources of the country are more equally divided between all the people. All the people of each country have a common interest in the people of the other. The prosperity of one reflects and enhances that of the other. This has become so thoroughly understood that war is now, apparently impossible. The aristocratic oligarchy of England has lost its preponderance. The commercial principle has obtained the ascendancy, and the mutual dependence of the two countries upon each other has been acknowledged. The proof of this is in the magnanimity with which England acknowledged her error in rejecting the offer of this government for the settlement of the Oregon boundary, and offering to take nearly the same terms after the lapse of a few months only. She has also abandoned altogether the absurd and obsslete notion, that England cannot prosper if dependent upon other nations for food. With the repudiation of this notion she has abolished the corn laws; thus, drawing tighter the bonds of union between the two countries. Such a spectacle cannot but have an influence on the rest of the world, and lead to a speedy peace with Mexico. Nor is it to the interest of the English people that the United States should desist from occupying California. The settlement and regeneration of the fertile countries of Mexico, by the English race, will only have the effect of benefiting the commerce of the world, and England included. It is possible that it may conflict with the personal interests of England's hereditary oligarchs; but they have already been obliged to surrender important interests to the popular will and welfare. The time has now gone by when aristocratic interests could plunge two nations into war. It is, therefore, to be hoped, that when the war clouds that now hang over us shall have been blown away, that the countries will so understand each other that no similar difficulties may occur to disturb the current of commerce. This is the more likely, as late events in England show that the people have triumphed over the aristocracy. As yet, the foolish and unnecessary war with Mexico has had but little influence upon commercial affairs. The alarm that existed at the date of our last in relation to Mexican privateers, subsided mostly, for reasons we gave in our article in that number, and the southern markets have, in some degree, recovered from the difficulties that overtook them at New Orleans. The rate of bills at different periods, may indicate the change in the state of affairs, as follows: The panic which attended the first outbreak of hostilities, made it impossible to negotiatebills. The banks held up, and money became very scarce. About the 20th of May, however, the banks began to purchase at the low rates, and bills began to improve. This eased the market to a considerable extent, and the northern credits of the New Orleans banks above time, reached over $4,000,000, in addition to the credits created by the transfer of government funds, for war expenditure. Freights became more plenty, and produce moved forward more freely. The condition of the specie paying banks of New Orleans, was as follows: Mechanics' and Traders' bank, Union bank,...... Total, May 30th,. March 27d,. 46 Decrease,..... 12,877,330 $38,043 $344,992 The accumulation of specie at New Orleans continues very large, and the prospect now is, that it will still further increase, more particularly in that the receipts of produce continue so large at that point. Perhaps, however, the evil greatest in its practical effects, which has overtaken the market, has been the reaction of the speculation which took place in produce, last autumn, growing out of the fears of a failure of the English harvest. When the harvests of England were last year approaching their close, it became manifest that the potato crop of Ireland was short. This, of itself, was a fearful calamity, because the potatoes of Ireland not only form the food of millions of the people, but it is their only dependance. They have not, like the people of other countries, reserve property in some shape, that may, in case of emergency, be applied to the purchase of food. They are absolutely without any accumulation of the proceeds of their past industry, and from the unhappy state of the government, their labor is without a market. The failure of the only resource for millions of people, was a circumstance likely to alarm the public mind, and prepare it to believe more than the truth. Political agitation, therefore, seized the moment to agitate for a repeal of the corn-laws, and the idea became very prevalent that the crops of England were short. The effect upon the New York market is seen in the following table:— PRICES OF PRODUCE IN THE NEW YORK MARKET. lb. Ashes, Cotton, Dry Flour, Rye, cwt. Tar, Beef, Pork, Rice, Tob'o, Wool, mess. mess. cwt. Ken'y. merino. Total. lb. lb. 1843. Oct. 1844. 4.50 0.08 2.25 4.44 0.65 1.37 6.50 10.87 2.50 0.03 0.30 33.50 Feb. 4.62 0.10 2.62 4.87 0 67 1.25 5.87 Sept. 5.00 8.94 3.18 0.024 0.40 30.98 1.81 5.50 8.94 3.18 0.02 0.40 31.81 0.65 9.37 2.75 0.024 0.37 31.35 9.37 2.75 0.02 0.37 32.241 10.25 3.00 0.02 0.37 33.31 9.87 2.62 0.02 0.37 32.24 Oct. Nov. 4.00 0.06 2.56 4.62 1.70 Dec. 3.87 0.05 2.25 4.69 1845. Jan. 3.75 0.05 2.44 4.62 0.66 1.69 6.50 Feb. 3.87 0.062.44 4.88 0.65 1.69 6.75 March, 3.75 0.06 2.63 4.82 0.66 1.50 7.00 April, 4.18 0.06 3.06 4.62 0.67 1.65 9.25 13.12 3.25 0.02 0.371 40.27 3.85 0.06 2.91 4.81 0.65 1.87 8.75 12.97 3.18 0.02 0.37 39.454 3.77 0.07 2.90 4.75 0.66 2.00 8.87 12.97 3.18 0.02 0.36 39.264 3.87 0.07 2.41 4.50 0.64 2.17 9.00 12.97 3.18 0.07 0.33 39.331 3.81 0.08 2.41 4.60 0.70 2.31 9.37 13.67 3.81 0.03 0.30 41.09§ 3.87 0.08 2.56 4.85 0.63 2.25 9.26 13.87 4.41 0.03 0.30 49.14 4.00 0.08 2.62 4.91 0.70 2.00 8.25 13.71 4.62 0.83 0.31 41.22 Nov. 3.81 0.07 2.65 6.41 0.80 1.87 7.87 14.12 4.62 0.03 0.37 42.62 Dec. 3.75 0.07 2.72 6.37 0.81 2.12 8.25 13.56 4.62 0.03 0.37 42.69 1846. May, June, July, Aug. Sept. Oct. Jan. 3.77 0.07 2.81 5.75 0.80 2.31 8.25 13.18 4.25 0.03 0.37 42.297 The fall here has been great and general, it will be observed. The aggregate of the eleven articles, in September, was $49 14, and is now $33 54, an average fall of 33 per cent. So great a fall in the prices of produce could not but be productive of the most serious results, and the pressure in that branch of business has, accordingly, been severe. It happens, however, that the farmers and producers mostly obtained good prices for their articles under the excitement of the last fall, and the subsequent loss has mostly fallen upon shippers and acceptors. In the usual routine of business, bills against produce sent forward, are accepted by the consignees for a value approaching to what can be realized in the market for the articles at the time of the acceptance; a rapid and continued fall will uncover the paper, and leave large reclamations upon the forwarders after the sale of the produce shall have been effected. The state of the money markets, funds being difficult to be had, simultaneously with a great fall, has caused the acceptances of produce to range as low as 2 a 3 per cent per month, and many failures have taken place. General business, however, appears not yet to be affected. The foundation of all business is the products of the agricultural interests; when prices are very low, there remains but little, after paying transportation and incidental expenses, for the purchase of goods or the payment of debts. As we have stated, however, the decline in rates has not yet reached the producing classes. The aspect of affairs now is, that, with the large stocks, and prospective good crops, prices for the new year must open low, and the general business of the coming year feel the consequences. Great expectations have been entertained of the repeal of the English laws; but it will prove to be the case, we think, that the effect of government regulations are much overrated. The opening of the ports of Holland and Belgium, last fall, was not followed by any material increase in the trade, or change in the price of corn. Nor can the removal of the English duties greatly change the trade. It would appear now that there is a sufficiency of food in England for the wants of the people, at fair prices, and that the removal of the duties would not, therefore, enhance the imports. The quantity of food in bond is exceedingly great. The following are quantities in bond at different dates :- GRAIN AND FLOUR IN BOND IN GREAT BRITAIN. Wheat. Barley. Oats. Rye. Beans. Peas. Ind'n Corn. Flour. qrs. qrs. qrs. qrs. qrs. qrs. qrs. Feb. 5, 1842, 289,943 60,711 222,501 53,395 55,377 1,366 107,461 28,730 14,241 120,351 1, 1845, 344,668 8,141 65,981 64 1, 1846, 1,061,781 74,467 82,619 163 May 5, 1846, 1,339,955 92,572 127,447 The supply in bond has accumulated to a very great extent, and it is stated that the supply of old wheat in the country, has very considerably increased. The progress of the speculation and consequent rise in prices, is observable in the following table of prices according to the official reports which regulate the duty : The highest point it appears, was Nov. 1, when the price reached 60s. 1d. per quarter. Since the course has been gradually downward, notwithstanding that, the ministers of the crown have proposed and carried through parliament a bill to make 4s. the maximum duty upon wheat, and after January, 1849, to abolish it altogether. The proposed duty is probably sufficient to prevent any extraordinary import for the present. Under all these circumstances, the export of breadstuffs from the port of New York has been very large. The following table will show the relative quantities for some years. EXPORT OF WHEAT FLOUR AND CORN, MONTHLY, FROM THE PORT OF NEW YORK. From Dec., 1839, to Nov., 1840. From Dec., 1841, to Nov., 1841. FLOUR. CORN. FLOUR. CORN. September,..... 50,702 October,........ November,. 7,810 16,426 1,355 26,600 7,854 4,986 22,798 12,981 299,333 143,404 328,817 161,421 |