was freely asserted that, if the banks called in their loans and withdrew their notes from circulation, there would be "no money." This was a bugbear, held out to frighten the advocates of specie payments. The evils of a depreciated paper money became, however, so apparent, that resumption in November, 1842, could no longer be avoided. The result was as indicated in the figures, viz, a return of paper for specie, leaving but a small amount of bank notes in the hands of the public, and but little specie in the vaults. It appeared, however, that ten banks were unable to continue their payments, while six have done so, observing a restricted movement up to the present time. Now it will be observed, that the receipts of produce at New Orleans, and the value of that portion exported abroad in 1848, together are nearly double the amount for 1842; yet the loans of the banks are this year equal to only one-eighth of the amount due them in 1842, and the amount of specie they hold is more than double that of the bills outstanding. Now we are further to take into consideration the fact that the business of New Orleans flows in from many States, all of which had large "bank accommodation" during the general suspension; as, for instance, Louisiana, Missouri, Mississippi, and Arkansas, together had bank loans amounting to $111,467,641, and the active loans in all those States together now reach $8,493,710 only; yet we have seen above that the value of their products arriving at New Orleans has doubled, while the specie lying in the bank vaults has swollen to the sum of the loans. In these facts we have the clearest evidence of the unimportance of bank credits to commercial prosperity. It may be stated, as explanatory of the above table, that the foreign exports, or portions of produce sent to foreign countries, are the same produce that is received by the river, but it passes into other hands and becomes the basis of distinct business operations, and, moreover, does not include the exports from New Orleans to other States; as, for instance, the exports from New Orleans for the year ending with June, amounted to $67,182,323, of which $39,348,722, as above, was to foreign countries, and $27,833,601 coastwise. In relation to the bank loans, it is to be remarked that the figures indicate only the regular business notes. The same institutions have loaned near $17,084,516 on mortgages, stocks, real estate, &c., being of the nature of loan office operations rather than of commercial banking. The specie feature indicated in the New Orleans banks are also common to all commercial institutions, as seen in the following table :— SPECIE IN CERTAIN BANKS. England. France. N. York. N. Orleans. S. Car. Ohio. Total. $26,010,000 $41,230.000 $4,074,601 $1,741.526 $857,649 $1,018,611 $74,931,787 54,665,000 43,182,000 6,174,317 4,586,737 817,131 524,096 126,405,820 81,610,000 52,500,230 11,206,542 9,918,052 973,318 774,689 156,976,056 70,920,000 48,965,049 6,893,236 8,138,987 901,173 819,100 136,673,545 65,172,200 47,250,100 8,361,380 6,558,974 830,760 1,374,593 129,548,010 9,191,254 6,345,316 643,841 2,026,551 105,251,167 7,418.928 6,192,376 860,475 2,604,446 78,710,951 6,722,326 8,235,274 571,502 2.590,130 105,614,680 6,751,338 7,590,655 388,111 2,681,474 119,236,132 72,130,240 14,913,965 We have in this result the most extraordinary fluctuations. The largest amount of specie ever held by the banks was in that year of general prosperity, 1844. The amount of specie then in the institutions being large, a less quantity was, of course, in circulation. In October, 1847, however, after the disastrous failures and loss of confidence in England, specie became more in demand for general use to supply the want of that paper become discredited, and by which inter change of products is usually effected. The transfer of private credits accompanying the movement of produce is that which constitutes the great money movement of the country, and it governs, but does not flow from corporate operations. The leading features of the banks of the United States, as prepared at Washington, have been as follows: A GENERAL STATEMENT OF THE CONDITION OF SO MANY OF THE BANKS AS HAVE MADE RETURNS, DATED NEAR TO JANUARY 1, 1848. 139,450 170,231 65,505 38,904,525 Michigan....... January, 1848 1 Total..... January, 1848 622 129 204,838,175 344,476,582 66 66 66 66 66 66 66 66 66 66 66 66 66 66 1847 591 124 203,070,622 310,282,945 31,788,641 1846 587 120 196,894,309 312,114,404 31,689,946 1845 580 127 206,045,969 288,617,131 29,619,272 1844 578 118 210,872,056 264,905,814 35,860.930 1843 577 114 228,861,948 254,544,937 20,666,264 1842 563 129 260,171,197 323,957,569 30,752,496 1841 619 165 313,608,959 386,487,662 47,877,045 1837 632 154 290,772,091 525,115,702 59,663,910 CONDITION OF SO MANY OF THE BANKS AS HAVE MADE RETURNS-CONTINUED. 1848 46,369,765 128,506,091 103,226,177 39,414,371 1847 35,132,516 105,519,766 91,792,533 28,539,888 1846 42,012,095 105,552,427 96,913,070 28,218,568 1845 44,241,242 89,608,711 88,020,646 26,337,440 75,167,646 84,550,785 31,998,024 58,563,608 56,168,623 21,456,523 83,734,011 62,408,870 25,863,827 107,290,214 64,890,101 42,861,889 37,915,340 149,185,890 127,397,185 62,421,118 1844 49,898,269 1843 33,515,806 66 66 1841 34,813,958 The increase in loans and discounts has, for the whole Union, been 10 per cent, and they are now 50 per cent higher than in 1843, following the large movement of produce, which has annually increased in magnitude. It will be observed, that although the loans have increased $100,000,000 since 1843, the capital of the banks has diminished $24,000,000; hence, that the increased means of lending has been derived from deposits and circulation, or funds which the banks have borrowed of the public without interest to lend at a high rate to others. With $24,000,000 less capital, the institutions hold $13,000,000 more specie; that is to say, when they held 15 per cent of the capital in specie, they now hold 23 per cent in specie. Since January, 1843, the means of all the banks to lend have much diminished, as indicated in the table of New York banks given above, and the rate of interest has advanced under the demands of the interests alluded to. This advance in interests has promoted the profits of the banks in all the cities. The following is a table of the semi-annual return, brought forward from our number for November, 1847, for the Boston banks, where capital has probably been more in request, through railroad influences, than in New York or Philadelphia: BANKS. Atlas.. Atlantic.. Boston.... April. October. April. October. April. October. Capital. p.ct. Am't. p.et. Am't. p.ct. Am't. p.et. Am't. p.ct. Am't. p.ct. Am't. $500,000 3 $15,000 3 $15,000 3 $15.000 3 $17,500 3 $15,000 34 $17,500 500,000 3 15,000 3 15,000 3 900,000 34 21,000 34 21,000 34 15,000 3 21,000 34 17,500 34 17.500 34 17,500 36.000 4 36,000 Boylston 150,000 .. 6,750 City 30,000 34 35,000 34 35,000 Columbian...... 500,000 3 15,000 3 15,000 3 15,000 4 20,000 15,000 3 17,500 34 17.500 3 17,500 Exchange 500,000 .. 22.500 4* 20,000 8,000 4 8,000 4 8.000 41 9,000 30,000 3 35,000 33 35.000 4 40,000 15,000 3 17,500 31 17,500 31 17.500 3 17,500 34 17.500 3 17,500 Market.......... 560,000 4 25.200 4 28,000 Massachusetts.. 800,000 3 24,000 3 24,000 3 24,600 3 24,000 Mechanics' 120,000 4 4,800 4 4,800 4 4,800 4 Merchants' 3,000,000 34 105,000 34 105,000 34 105,000 34 105,500 4 120,000 4 120,000 New England.. 1,000,000 3 30,000 3 30,000 4 North... Shoe & Leather Deal... State....... 1,800,000 3 54,000 3 54.000 34 63,000 50,000 12,000 3 12,000 34 16,000 Tremont Union..... 500,000 3 15,000 3 15,000 3 15,000 3 17,500 28.000 3 15,000 3 17,500 3 17,500 3 17,500 The Boylston Bank went into operation in December, 1845, and the Exchange Bank last year, making $650,000 of new bank capital. The progress of capital and dividends has been as follows: Years. 1843.. 1844.. 1845.. 1846.. 1847. 593,000 18,180,000 603,000 1,196,000 658,300 1,281,300 1848........... 18,180,000 The capital has increased in this period $1,870,000, and the dividends $594,350. That is to say, $17,010,000 of bank capital paid, in 1843, 4.9 per cent average interest; and $18,480,000, which was the working capital of 1847, the Exchange Bank not having been long in operation, paid 6.8 per cent, being an increase of 2 per cent on the capital, or 50 per cent in the nett profits of 1847 over 1843, in capital invested in banking in Boston. In 1848, the working capital has been $18,980,000, and the dividends $1,428,350, an average rate of 7.52 per cent, and an increase of 50 per cent in the profits of capital so employed since 1843. The New York banks, as far as their second dividends for 1847 have been declared, show similar results, as follows: The Mechanics' Bank declared an extra dividend of 5 per cent from its surplus, which cannot therefore be considered as its earnings for the six months. It appears, however, that the aggregate earnings of all these banks for the year have averaged 8 per cent this year against 6 in 1845. In our November number, last year, we remarked as follows in allusion to the state of the currency, as evinced in the above table of banks for the whole Union: The present expansion of the currency, in all sections of the country, is the legitimate effect of the long period of favorable exchanges, and has reached a point which, in another year, may promote unfavorable exchanges, and produce a revulsion-the more so, that the affairs of Europe remain in so unpromising a position. The unfavorable state of exchanges has resulted from the enhanced consumption of goods, while bank credits have aided at a time when the exports have diminished in volume and value. Revulsion has not, however, resulted. The pressure has induced greater caution in regard to sales on the part of the leading merchants; and with the renewal of the foreign demand for domestic produce, which this year is likely to be large, the pressure will have been removed; the more so, that a portion of the government loan which had been held here has been put off upon the London market through the operations of an eminent Washington banker. Of the last loan of the federal government, probably $6,000,000 has found its way abroad. There have been voluntary purchases from most of the countries of Europe to the extent of $2,000,000, exclusive of the sums sent to England; and as the political horizon continues threatening, the probability is that larger sums will be sought after, while the whole tendency of affairs here is to extinguish debt. During the past month the federal government discharged some $1,000,000 to the holders of the Mexican indemnity, and the revenues are so far in excess of the expenditures as to indicate a speedy discharge of considerable amounts, at least of the $13,000,000 Treasury notes outstanding, and payable at the end of the year. The State of Illinois has also commenced paying, from the proceeds of its land sales, a portion of the $1,600,000 loan borrowed by the commissioners, Messrs. Oakley and Ryan, to complete the Illinois and Michigan Canal. It is also in contemplation to introduce into the Illinois legislature a bill authorizing banking on the State stock, an operation which may absorb a considerable quantity of the stock of that State. COMMERCIAL STATISTICS. COMMERCE OF HONOLULU, OAHU, IN 1847. We published in July, 1847, an interesting paper relating to the Commerce and Government of the Hawaiian Kingdom, prepared expressly for the Merchants' Magazine, by JAMES JACKSON JARVIS, Esq., late editor of the "Polynesian," the government organ at Honolulu, and in earlier volumes still more complete and elaborate accounts of that interesting kingdom, from the same authentic source. With the exception of its monarchical feature, the Hawaiian kingdom seems to pattern its social and commercial institutions after our own, and with a degree of success that must prove highly gratifying to every friend of political liberty and industrial progress. Having received from our attentive correspondent at Honolulu, a file of the Polynesian, we are enabled to furnish late official statements of the commerce of Honolulu, &c., which we present in as condensed a form as the data will admit. It appears that, in 1843, the imports into Honolulu amounted to $223,383, yielding a revenue to the government of $8,468. In 1847 they had swelled to $710,138, and the revenue thereupon to $48,801, being an increase of imports of $486,855, and of revenue $40,332 in four years. The editor of the Polynesian thinks it worth while to inquire into the causes of so flattering a result, and consider the prospect for the future. He says. "The chief cause of this rapid increase of imports has been the temporary market created by the influx of whaleships. In 1843 there arrived 318; in 1844, 467; in 1845, 540; in 1846, 595; in 1847, 384, a decrease which brings the number down almost to that of 1843, the birth period of the present ship chandlery business, which has had so favorable an influence upon the prosperity of the group. The whalers having created, in most part, this import trade, and also having in chief made the market for the native produce, it follows that if they decline in numbers the imports must proportionately decrease, and with it the revenue. We will allow that from other causes the actual consumption by the aborigines of foreign goods is double what it was in 1843, and that the aggregate value of sugar and coffee raised is in the same proportion. Yet even with this healthful and permanent increase, the decline of imports and revenue from the falling off from 595 whaleships to 384 in one year must soon show itself, unless a new business is created to fill the gap." We give below a statement of the imports and exports of Honolulu, as made up by |