posed Convention. This objection could, however, be obviated by providing in advance some suitable authority for the decision of any such question within the limits of the State such as either a committee of the State convention itself, or else the Democratic members of the Legislature which will be in session at the proper season for the purpose. On the whole, we conclude with joyfully congratulating our political friends upon the now cloudless clear ness of the prospect before us. The action of the Convention in May will be cheerful, cordial, and harmonious; and whoever may be its selection, from among the several worthy names now prominently before the country, he will most assuredly be supported with an united energy and enthusiasm which make his election already perfectly assured, by a massiveness of popular majority that will fully atone for all the disaster and disgrace of the yet unforgotten 1840. MONTHLY FINANCIAL AND COMMERCIAL ARTICLE. perceptible, some backwardness to continue their loans on stocks was evinced by the Banks here. Ar the date of our last, the speculation in stocks, caused by the abundance of money, was running high, and we pointed out indications that the channels As the money affairs of England of regular business would soon feel the appear now to be taking a turn, after a impulse which stock securities had felt. long-continued current in one direction, From that time up to the arrival of the it may be well in this place to glance steamer from England, on the second at their position, with a view to their of June, prices continued to rise. The effect upon American interests. The advices brought by that conveyance Bank of England is the great centre of were, however, of a nature which gave the money power in England. Each a momentary check to operations. It contraction or expansion of that instiwas the first steamer for many months tution is felt by those merchants and that had little or no specie on board, brokers who come in their transactions showing that the state of the exchange immediately in contact with it. The market was in a position to stop further impulse then gradually spreads through imports of the precious metals, and all grades, until the most remote in the therefore that the supply for the year islands, and even in distant countries, had been received. Money, which had feel the vibration. The Bank of Engbeen constantly decreasing in value in land is surrounded, for a circle of sixty England for a length of time, had be- miles, with merchants, bill-brokers, and gun to improve. Sanguine expectations joint-stock banks, that issue no bills, had been entertained here that the long but derive their supplies from the Great continuance of extreme low rates for Bank. These are the parties that first money, which was scarcely 1 per fecl the contraction, and again are first cent. per annum, would sooner or later glutted with money, when it suits the induce investment in the sound Ameri- Imperial Monster to spread its web. can stocks, and thereby relieve this Next to these, come the bill-brokers market of considerable amounts, thus and joint-stock banks of Lancashire, affording an outlet or market for the which issue no notes, but re-discount stocks now held by the Banks, when the bills they take from the manufacreviving trade should create a legiti- turers with the Bank of England. mate demand for their funds. When, These accommodations of the Lancatherefore, the late steamer brought shire banks to the manufacturers are, advices of an advance in the discount of course, dependent upon the disposirate of money in London to 2 per cent., tion of the Bank of England, with without any such disposition being which their arrangement for money exists. This arrangement is generally permanent, the Lancashire banks receiving the Bank of England money at something less than the market rate. Hence it is that the manufacturing districts of Lancashire first feel the stimulus of renewed loans. The Scotch and other provincial banks, that issue their own bills, then follow the cue thus given, and trade revives accordingly. Thus premising, we will give the English currency for the last two years, down to the latest date : PAPER CURRENCY OF ENGLAND, AND BULLION IN THE BANK. This table commences when the Bank began to recover from the difficulties incident upon the short crop of 1839-40. Its rigorous contractions ruined banks and merchants by hundreds, and forced up the rate of money to 6 per cent. in January, 1842; a rate higher than had been known since the reign of queen Anne. The Bank then began to push out its paper with an unsparing hand, and by August had increased its issues twenty-five per et., reducing the rate of discount in London from 6 to 2 per cent., while in the interior of the country the distress was terrible. In all that time, the country banks had been diminishing their issues, so that in August the whole quantity of money was no greater than in the previous October. The national distress, caused by these fluctuations, is painfully indicated in the fact that the revenue from consumable goods fell off £7,000,000 in the year, leaving a deficit of £2,000,000 above the £5,000,000 derived from the new Income Tax. The same general process was con tinued, the Bank expanding, and the country institutions curtailing, until May; during all which time the rate of money continued to fall, until at that time a demand for money for business purposes sprung up in London and in Lancashire, which raised the rate of money to 2 per cent., notwithstanding that the volume of the currency was nearly as full as at any period embraced within the table. We observe that the country banks also show an increase in their circulation, giving some evidence of an improved demand for money in their several districts. In Lancashire, the effect was evinced in the renewed purchases and improved prices of cotton, notwithstanding that the full extent of the crop, 2,200,000 bales, was known. American provisions were also better. The continental exchanges continued largely in favor of England, and there was every prospect that, with continued political quiet, business would rapidly revive, much to the advantage of the United States, because the rapid rise of prices under an inflated currency will greatly favor the sale of produce exported from the United States, where happily the banks are not in a situation to retard the operation by a corresponding inflation. Apart from political considerations, there are at present no grounds to fear an immediate contraction on the part of the Bank of England, and therefore the impulse now communicated to business is likely to develope its effects through a long and prosperous season. The English commercial affairs seem thus to have taken a decided turn for the better, and the extreme low point of the value of money passed without having produced any desire, in those who seek to employ it, to avail themselves of the high dividends made on American stocks. The benefits to be derived from renewed confidence in stocks, and the advance of money on such security, are, however, at best, of very doubtful utility. The advance of prices and improved demand for the proceeds of American industry are, on the contrary, solid and unequivocal advantages. This is universally admitted when the return for the sales is specie; but when the return is made in goods, it is considered as a disadvantage by a portion of the community. Hence, strong efforts have been made, and, unfortunately, with the 27th Congress successfully, to hamper trade by the imposition of enormous duties. To this circumstance may be ascribed the disastrous stagnation which has prevailed in all channels of trade since the influence of the 27th Congress upon affairs was first felt. In looking back at the events of the last few years, and tracing effects to the causes which produced them, we are particularly struck with the disastrous results of the measures of the party which arrived at power through the revolution of 1840. For twelve years prior to that event, the Demo cratic ascendancy remained unshaken through all the vacillations of currency and commerce. Prices of domestic produce had ruled at very high ratesfar too high for a healthy state of affairs. They indicated rather the depreciation of the general mixed currency than the actual value of the commodities. In the early part of 1840, a general and rigid curtailment in the amount of currency took place, and, of course, a heavy fall in the money value of agricultural produce ensued, which fall was enhanced by the increased production, which the improved industry of the previous year had rendered enormous. Taking advantage of the general uneasiness created by that fall, the Opposition, with the most barefaced and wholesale promises of reform, succeeded in making the cry of "change" popular. In our article of April, we endeavored to show how utterly the party failed in redeeming their promises, particularly in regard to finance and the exchanges. We will now trace the present stagnation in all trade, the ruinously low prices with which the farmer is rewarded for his toil, the scarcity of freight among the shipping, and the idleness of the mechanic and laboring man, to the disastrous intermeddling of the 27th Congress with trade, and compare it with the state of affairs when the reckless and unprincipled promises of politicians fomented the destructive desire for "change." There is no surer indication of the condition of the great agricultural classes, than the relative money values of the produce of their labor. have, therefore, compiled an elaborate table of the prices of the leading articles of domestic produce, at several periods, commencing in 1840, when the low range of affairs gave effect to political artifice, and at succeeding periods down to the present moment, as follows: We In 1840, owing as much to the abundant production as the contraction of the circulating medium, flour and wheat fell very low. In the same year, the crop of England being short, a good export demand grew up, which was favored by the low prices here. The export of wheat and flour, therefore, reached to 2,250,000 barrels of flour, equivalent to 11,250,000 bushels of wheat. The census gave as the production of that year, 84,000,000 bushels. Consequently, near 10 per cent. was exported. The consequence of so large an export was, that in the succeeding year prices averaged fully one dollar per barrel higher, when equivalent to 8,461,000 bushels were exported. The rise in the price of flour during that year, when all other articles fell, is very conclusive proof that the full surplus was exported, and that the farmers received full money value under the circumstances. If we consider the crop of 1841 as 90,000,000 bushels only, 6,000,000 in excess of 1840, the rise in price consequent upon the large export made a difference of $20,000,000 in favor of the farmers, and laid the foundation of a speedy return of prosperity. The effects of this were at once observable in the state of the imports, which for the three last years ending December 31st, have been quarterly as follows, showing the quantity free of duty, and the total dutiable and free. IMPORTS QUARTERLY INTO THE UNITED STATES FOR THREE YEARS. First Quarter, Second Quarter, Third Quarter, Fourth Quarter, Total. Free. 16,270.557 Total. 28.934.302 12,053.141 22.237,180 14,555,631 28.217.025 11,657,880 22,700,333 Free. 18,617,299 Total. Free. 36,243,401 8,506,002 32,931,955 17,104,123 31,484,418 8,191,214 26,111,101 18,640,429 37,518,028 4,725,537 17,197,898 8,533,943 23,116,375 6,450,601 13,648,094 $54,537,209 $102,088,840 $62,895,794 $128,362,222 $27,873,354 $89,889,048 Total. The increased means of the masses of the people, consequent upon the large sales of 1840, produced a rapid return of business in 1841; and although banking discredit had advanced in that year, and paper money was further curtailed, the import business swelled 25 per cent. for the year ending December 31st, 1841, and at that time the prices of American produce stood very high in comparison with present rates. Everything indicated a rapid recovery of general trade. That the import for 1841 was not too large, is proved conclusively by the fact, that, although they continued nearly as high through the first two quarters of 1842, exchanges fell in favor of this country at the time, and that influx of specie commenced, which has resulted in adding $20,000,000 to our stock. Now, through the extra session of Congress, commercial affairs were not meddled with, and the natural vigor and energy of the people were rapidly restoring a high degree of prosperity. At the commencement of the first regular session of the 27th Congress, however, it became apparent that the just spirit of compromise, out of which grew the tariff of 1832, would be violated at the expiration of the act in July, 1842. Instantly, commerce felt the blighting effect of uncertainty. The merchant became conscious that his property was at the mercy of reckless politicians, and he became cautious in his purchases of domestic produce to send abroad, because Congress was threatening the value of the returns. In the above table of prices it will be observed that almost every article sunk in value. The imports of free goods in the second quarter of 1842, fell off $9,000,000 as compared with the same quarter of 1741, and $4,000,000 as compared with 1840. The total imports of the first six months of 1842, were $8,000,000, less than in the same period of 1841, showing how heavily government interference with individual business preyed upon commerce. During two months of the third quarter of 1842, there was no tariff; in the third month a highly protective tariff was put in operation; that quarter gives a decline of more than $20,000,000 in business, as compared with the same quarter of 1841. In the fourth quarter the imports were still less and those for the first quarter of 1843, although not yet offi |