AT the date of our last number, we described the features of the market to be a great abundance of money, with almost a total absence of legitimate means of investment, causing specie to accumulate in the banks, without employment. The banks and some leading firms, indeed, found a channel for investment in the low price of foreign bills; but institutions are far from doing business sufficient to meet the great expenses with which that business is necessarily hampered when done by incorporated associations. The same state of affairs has generally been preserved through the month, with the exception of an increased disposition to invest in stocks, consequent upon the state of affairs. The import of specie has been about $3,000,000 from England. By a recent law of Congress, the value of gold has been reduced from 94.8 cents per dwt. to 94.6 cents per dwt., or one-fifth of one per cent. According to the results of weighings at the U. S. Mint, one thousand sovereigns weigh from 5111 dwts. to 5124 dwts., or an average of 5117.5 dwts. There

Rate.

1841.

fore, the loss is 1.024 per sovereign. We mentioned in our last that the defeat of all the Exchequer and other "relief" measures of the dominant party, in the national government, had induced greater confidence in stocks, and that the remaining portion of the government loan had been taken. This stock has since sold at 6 per cent. premium, and Treasury notes at 1 1-2 per cent., notwithstanding that a re-issue has been ordered, and the whole outstanding amount $11,000,000, to be funded in a stock redeemable in ten years. All other stocks have advanced under the increased confidence which has induced the banks, rather than let their fands lie idle, to loan upon them within a few per cent. of the market price, thereby placing within the reach of numerous enterprising speculators the means of acting upon the market. The result has been a great rise in prices, without much effective demand for permanent investment. The result of this is seen in the following table of rates to the 15th instant, as compared with those reported in our January number.

1842.

1843.

March 15.

80

72

70

68

45

55 50 a

50 a

33 33 a

103 a 106

76

a

100% a 101 105 794 a

91 a 93 96 a 99 91 a

103

@ 104

961 a 98

This table gives a great rise in prices, particularly in New York 6 per cent. stocks, which, it will be observed, are 25 per cent. higher than in February, 1842, just previous to the passage of

744 a 75 70 a 71

72 a 724

65

60 a 78 a 78

70 a 704

854 a 85}

a 181 20 a 21

20 a 214 24 a 25

a 30 28 a 30 a 80

65 a 75

38 a 394 391 a 40 107 4 109

a 106 106 a 107 85 a 87 92 @ 93 84 a 85 91 a 914

the mill tax. The rise has been greatest in those stocks of which the least amounts are held abroad, as the New York and Federal Government stocks because, from the peculiar position of

American credit, it was natural to suppose, that the moment values rose under the speculative action growing out of bank loans, the opportunity would be seized upon by the foreign holders, to realize and recover their money at the expense of the banks here, which would thus incur certain loss. Under this movement all stocks rose; but the danger thus incurred, of being unable to realize except at a loss, should returning business create a more legitimate demand for money, induced the banks to check the operation by loaning more sparingly. The different stocks have also been influenced each by causes emanating from the action of the several State Legislatures. Florida has passed resolutions repudiating its bonds. Michigan acknowledges all those bonds for which she has received full payment, and will take measures to discharge them. Indiana has passed a "stay law," similar to those of some other States, all of which have, however, been pronounced unconstitutional by the Supreme Court of the United States, the effect of which is to repeal the stay laws, and revive those laws previously in operation. Illinois has reduced its internal taxes 50 per cent., repealed the charters of the only two banks in the State, by which nearly four millions of her debt will be cancelled, and also arranged for the completion of her great canal, on terms of compromise with the holders of the canal bonds. Pennsylvania has made no other provision for its interest, amounting to near $1,000,000 due on the first of February, than by issuing to the claimants, bonds at 6 per cent., payable in 1844. The State of Indiana proffered the same terms to its bondholders in July, 1841, but few, however, accepted them. The State of Ohio has increased its stock debt, by issuing $2,000,000 of scrip, of $100 each, in payment of moneys due the domestic laborers on its works, and to raise the means of completing the Miami extension canal, which requires upwards of $400,000. The Legislature of Kentucky rejected all attempts at "relief," in the shape of a new bank proposed, a stay law, &c., and ended by renewing the tax law, which expired by limitation in February, the proceeds of which were applied to the payment of the State interest. The Legislature of Alabama, after a hard struggle, have abolished the

State Bank system, placed in liquidation the five banks owned by the State, and appropriated the specie in the vaults, near $1,000,000, to the payment of the interest on the State bonds. Taxes have also been levied to meet the expenses of the State government, formerly borne by the banks, and to provide permanently for the State debt. This is a signal triumph over the paper system, and will be of vast benefit to the people of Alabama. The State of Louisiana has been dishonored by the failure of the Citizens' and Consolidated Banks, to which was issued $9,568,888 of the State bonds, to pay the interest on the same. The proceeds of those bonds being mostly money borrowed in London, is loaned at 8 per cent. to the stockholder, whose estates, valued at double the amount, are pledged for the payment. The income of these estates will probably be devoted to the interest; but it is fearful to undertake to pay 8 per cent. for money employed in agriculture under a specie currency. One other bank at New Orleans, the Commercial, has failed and with the Carrollton gone into liquidation. It was one of the weakest of those banks which resumed last fall. That event was brought about by receiving an extension of liabilities from its creditors, whose claims have again matured and again been dishonored. This is an instructive fact, when taken into consideration with the state of exchanges, which have caused a large accumulation of specie at that point. It indicates that the institutions have not recovered the confidence lost by their continued suspension,-that they have earned nothing, and that the constant depreciation of their assets has left them worse off than before. All these events have influenced the stock market greatly, each in its own sphere.

The exchanges continue in favor of the United States and generally of the interior. The rate on New Orleans has again risen to 2 per cent. premium, causing renewed shipments of specie from New York to that quarter.

The adjournment of Congress has been a great relief to the public generally, and men congratulate themselves that it did no more mischief. Two years since, the dominant party, on coming into power, found a debt of $4,500,000, and the revenue equal to the expenditure. An extra session was immediately called, to raise a reve

Each one of these means was sufficient of itself to produce an uneasy feeling in the market, disastrous to private interests. Yet for party purposes, a constant struggle over a period of two years, has been kept up, destroying, as far as legislative action in this country can destroy, that stability in regulations which is of first conse quence to commercial and trading interests. One of the loudest complaints of the party which came into power in 1841 was the deranged state of the exchanges of the country. It was alleged and reiterated, that nothing but the establishment of a National Bank would enable merchants and dealers again to collect and transmit their funds at reasonable All attempts at establishing a corporate institution to regulate ex

rates.

bankrupt and distribution laws repealed, the bank and exchequer project defeated; and the only remnant of the high resolves of a victorious party is a protective tariff. We may put these resolutions and their results in a tabular form, as follows:

Fulfilment in 1842. Issue increased $11,000,000. Repealed.

Vetoed.

Defeated.

Repealed.

Debt increased to $25,000,000. Revenue deficient $7,000,000. Destroyed the Revenues. changes have proved unsuccessful. A great number of banks have failed, and others have been obliged to restrict their movements; thus forcing into practical operation the great principles embraced in the Sub-Treasury law, notwithstanding its nominal repeal. Those principles now under the stern behests of the laws of trade, have grown into more strict observance, than even when they were enforced by statutory laws. The receipts of the Government, as far as they go, are made and disbursed in the constitutional currency, and all trade is conducted on a cash basis. The following table will show the effect which this state of things has had upon those exchanges, which were alleged to require a paper bank for their regulation.