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1874.

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1875.

1877.
1878.

1879.
1880.

1,878,556,017

The

The American cotton-crop of the year 1880'81, as estimated by the "Commercial and Financial Chronicle," aggregated 6,589,329 bales. The largest crop picked in slavery times was in the second year before secession. This was first equaled by the crop of 1878-79. next year's crop, counted in bales, was 13 per cent greater, and last year 143 per cent greater than that. The average crop of the last three years exceeds the average of the three prolific years preceding the civil war by nearly one third. Below is reprinted a table giving every year's cotton-crop since the record was first kept, completed to date:

Of the total merchandise exports and imports of the year, 54 per cent, or $842,631,927, passed through the port of New York. The navigation returns for the fiscal year 1880-'81 show that the decline of the American merchant marine still continues. Although the tonnage of vessels built increased from 157,409 tons in 1879-'80 to 280,459 tons in 1880-'81, the de- 1881.. cay of vessels and losses by casualties was not made good by the increase in ship-building. On the 30th of June, 1881, the total tonnage of the country amounted to 4,057,734 tons, as against 4,068,035 tons at the close of the preceding fiscal year. The tonnage employed in the foreign trade of the United States decreased from 1,314,402 tons in 1880 to 1,297,035 tons in 1881, but the tonnage employed in the coastwise trade of the United States, embracing tonnage employed between American ports on the sea-board, on the Mississippi River and its tributaries, and on the Great Lakes, increased from 2,637,886 tons in 1880 to 2,646,011 tons in 1881. The foreign commerce of the United States has nearly doubled since 1866, but the increase in the carrying trade has fallen almost entirely to vessels of foreign nationality. The total tonnage of foreign vessels entered at sea-ports of the United States increased from 3,117,034 tons in 1856 to 12,711,392 tons in 1881, an increase of 308 per cent; whereas the American tonnage entered for foreign ports increased from 1,891,453 tons in 1856 to 2,919,149 tons in 1881, an increase of only 54 per cent. Of the total foreign tonnage entered at ports of the United States during the year ended June 30, 1881, amounting, as above stated, to 12,711,692 tons, the British tonnage amounted to 8,457,957 tons, or 66.5 per cent; the German tonnage to 1,112,566 tons; the Norwegian and Swedish to 1,035,078 tons; the Italian to 658,- 1857-58. 861 tons; the French to 304,809 tons; the Spanish to 277,163 tons; and the tonnage of all other nationalities to 805,121 tons.

The annual values of the total imports and exports of the United States carried in American and those carried in foreign vessels, and the percentage of American shipping in the total carrying trade, are given for the last thirty years in the following table:

YEARS.
1880-'81.
1879-'80.

1878-79.
1877-78..

1876-77.

1874-75.

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1875-76..

4,669,288 1849-50.

2,171,706

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1878-74.

4,170,388 1847-148.

2,424,118

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1877.. 1876..

The crop of 1880-'81 was matured and picked amid heavy rains, and packed in a damp and dirty condition. The waste was consequently exceptionally great, while the preceding crop had been remarkably clean and superior in spinning qualities. The crop of Sea-Island cotton in 1880-'81 was 36,442 bales, against 26,704 bales in 1879-'80, 22,963 in 1878-79, and 24,825 in 1877-78. The largest previous crop

was 32,228 bales in 1866-'67. American consumption of Sea-Island cotton for the year was 11,270 bales, or 1,881 more than in 1879-'80.

The extension of cotton cultivation falls in with and responds to an expansion of the world's demand, which has been progressive since the commencement of a new era of activity in the summer of 1879. The revival commenced with the return of prosperity in the United States. European consumption has increased over one million bales in two years, as seen from the following statement:

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The increase in the consumption of Great Britain over that of 1879-'80 was 7 per cent, in that of the Continent 8 per cent; but 24 per cent must be deducted as representing increased waste in the crop, leaving the actual increase in European consumption 5 per cent. Ellison estimates the requirements of Europe for the year commencing October 1, 1881, at 6,708,000 bales of 400 pounds, of which 1,960,000 bales may be expected to come from India, Egypt, and countries of smaller production, and 4,748,000 bales, or 4,165,000 bales of 456 pounds, from the United States. To supply this and furnish 2,050,000 bales for American consumption, a crop of 6,215,000 bales in 1881-'82 would be sufficient.

The exports of American cotton to foreign ports, during the year ending September 1st, were 4,589,075 bales; the overland shipments to Canada, 22,898 bales. The total exports of raw cotton to foreign ports for the last six years were, 4,596,279 bales in the crop year 1881; 3,865,621 bales in 1880; 3,467,565 in 1879; 3,346,640 in 1878; 3,049,497 in 1877; and 3,259,994 in 1876.

The takings of American mills from the crop of 1880-'81 were 1,891,804, and the total consumption is estimated as high as 1,915,000

1,898,298 148,000 1,546,298 1,530,000 1,288,418 147,000 1,435,418 1,435,000 1,211,598 145,000 1,356,598 1,810,000

The state of the markets was favorable to The domestic deAmerican manufacturers. mand was active enough to keep every spindle going. Prices kept up well, and afforded a good margin of profit. A long drought diminthe productive capacity 12 or 15 per cent for ished the water-power in the North, reducing about four months, but there was enough to work up the stock of material into the heavy drills and sheetings which were in demand. The addition of new spindles is estimated at 375,000, making the total number in the country at the close of the year 11,875,000. A considerable substitution of new spindles for old ones further increased the capacity for the production of yarn. The price of printed cloths was 33 cents at the commencement of the crop year, ranged up to 4 cents in the winter, standing above 4 cents until March, and between that and 33 cents most of the time afterward, and closed at 37 cents a yard at the end of the year. Standard sheetings were quoted at 74 cents in the opening months, 84 cents in the winter and spring, 8 cents in the early summer, and 83 cents at the close of the year. Prices thus ruled lower than the figures to which they were pushed by speculation in the preceding season. Trade was active the year round, without any dull interval. The prices of material were lower than in the previous season, but the difference was partly offset by the additional wastage. Low middling uplands commenced at 11 cents per pound in September, went down to 10 cents in November, recovered to 11 cents in December, stood above 11 cents till March, fell off to 93 cents in May, and advanced again to 11 at the year's close. The higher price of wages was an element of cost which must be taken account of in estimating the results of the year's business. An estimate of the average profit has been made by the editor of the "Commercial and Financial Chronicle." Those managers who have bought their cotton at favorable times, and conduct their mills most economically, may have realized two or three times the estimated rate of profit. Assuming the cost of cotton for standard sheetings to have been 12 cents a pound, the waste 2.26 cents, and the cost of manufacture and sale 6.50 cents, the cost of the product per pound would be 20.76 cents, or 7-27 cents per yard, which at an average selling price of 8.50 cents per yard

would yield a profit per yard of 1·23, or 3·52 cents on the pound of cotton. Counting the cost of material for print-cloths at 11-25 cents a pound, the waste 2·30 cents, and the cost of making and marketing 12 cents, the cost of the goods would be 25:55 cents a pound, or 3.65 cents a yard on delivery; at 4 cents a yard selling price there would remain a profit of 35 cents a yard, or 2:45 cents a pound.

An increase in the exports of cotton goods in 1880-'81, when the home demand was suffi

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$4.953,513

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80,399,154

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$6,624,374

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$1,963,601

$1,190,117

$1,356,584

$1,422,287

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$13,571,287

There were 2,133 national banks doing business on November 1, 1881, a larger number than in any prevous year since the passage of the banking act in 1863. The number of banks organized during the year was 86, a larger number than in any previous year. The number of banks which went out of business during the year was 26, having an aggregate capital of $2,020,000 and a circulation of $1,245,530. The capital of the 86 newly started banks aggregates $9,651,050; the notes issued to them, $5,233,580. The total number of banks which have been organized since the introduction of the system is 2,581. The number which have voluntarily gone into liquidation is 340; the number which have been placed in the hands of receivers, 86. The insolvent banks have paid $18,561,698 in dividends to creditors out of $25,966,602 of proved claims. The annual loss is therefore about $346,000 on $450,000,000 of average capital, and $800,000,000 of deposits. The capital of the 2,115 national banks in operation on June 30, 1881, was $460,227,835, not including the surplus, which amounted to about $126,000,000. The total capital of all the State banks, savingsbanks, and private bankers, aggregated $210,738,203, or but little more than a third of the combined capital and surplus of the national banks. The number of private bankers doing business in sixteen of the principal cities of the Union is 717; their aggregate capital, $58,534, 300; deposits, $89,996,545; reserve invested in United States bonds, $12,370,012. Private bankers outside of these cities with over $10,000 capital, to the number of 2,255 in 31 States and Territories, have an aggregate capital of $34,169,435, and deposits to the amount of $148,178,652. Private bankers in the remaining States and Territories, to the number of 66, have $620,120 aggregate capital, and $3,670,357 deposits. Massachusetts and Maryland (outside of the cities of Boston and Baltimore), Maine, North Carolina, New Hampshire, New Jersey, Delaware, and Vermont, have but 27 private banking houses together. In New

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The loans of the banks on October 1st were $1,169,022,304, which is an increase of $132.000,000 over the corresponding date in last year. The total individual and bank deposits, not deducting the amount due from banks and the clearing-house exchanges, have increased $225,725,496, amounting to the unprecedented sum of $1,381,852,887. The rate of the total loans to capital, surplus, and net deposits was then 68.9 per cent; in 1880 it was 673 per cent, and in 1879 75-3 per cent. The proportion of cash to net deposits was 155 per cent on October 1, 1881, and for the corresponding dates in 1880 and 1879 it was 17.9 and 18 per cent.

The bonds held by the banks to guarantee their circulation are now principally 3 and 4 per cents, there being about $241,000,000 of the former, and $92,000,000 of the latter.

The national banks, with the exception of those of New York city, have been steadily accumulating a gold reserve since the date of resumption. The specie reserve held by the New York banks on the 1st of January, 1879, was $18,161,092; by the other banks of the country, $23,338,665; together, $41,499,757. By the end of the year the New York banks had increased their reserve to about $50,000,000, and the other banks to about $30,000,000.

At the

beginning of 1881 the New York banks held $55,221,200, and the banks of the rest of the country $51,650,269. In March the New York reserves had fallen to $51,000,000, in May they had increased again to $65,000,000, and on June 30th to $67,393,400, falling off afterward to $51,000,000 in October. The reserves of the other banks of the country increased progressively to $53,500,000 in March, $57,500,000 in the first week of May, $61,245,000 on June 30th, and $63,000,000 in October.

The Comptroller of the Currency states in his report that he has been unable to obtain any evidence showing that the action of the banks in depositing legal-tender notes and withdrawing bonds pending the action of Congress on the funding bill, was concerted in order to derange the money market. Such a course, he says, would dangerously affect the value of the securities held by the banks against call loans. The banks of New York city had loaned out $97,000,000, and all the banks throughout the country $196,000,000 on demand, secured by collaterals which would be seriously depressed in value in a money panic.

The number of national banks which deposited legal-tender notes for the purpose of obtaining possession of their bonds in anticipation of the passage of this bill was one hundred and forty-one. These banks were located in twenty-four States, and the amount of legal-tender notes deposited by them was $18,764,434. Only about one third of the bonds which were thus released were subsequently redeposited, and for some months thereafter the total amount of bonds redeposited by the one hundred and forty-one banks which reduced their circulation was less than $7,000,000.

From an investigation made by Comptroller Knox, it appears that the financial settlements made by checks and bills of credit through the banks of New York amount to about three fifths of the business transacted by the aid of such instruments throughout the United States. The clearing-house settlements for the year ending October 1st aggregated about $48,000,000,000. The total financial transactions of the country effected by instruments of credit would be, therefore, some $80,000,000,000 for the year. That portion of the total payments which are due to fictitious operations on the Stock Exchange should be subtracted in order to arrive at the volume of the legitimate business of the country indicated by the bank exchange. About 5 per cent of the total transactions, it is found, are liquidated in money, and 95 per cent are discharged by means of checks, drafts, and other instruments of the kind.

From the date of resumption to November 1, 1881, the imports of gold in excess of exports amounted to $197,434,114, and the estimated gold production of the country for the same period was $104,150,000. The increment from both sources for the year ending November 1st was $114,749,390. Silver dollars are

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The amount of legal-tender notes in circulation has remained the same since May 31, 1878, in accordance with law. The additional issue of national-bank notes during the year was $16,510,143. The increase of bank-notes, gold coin, and silver coin, amounted to $152,912,876. On November 1st there was held in the Treasury $167,781,909 of gold, against $133,679,349 at the same date in 1880; $66,576,378 in standard silver dollars, against $47,156,588 in 1880; $3,424,575 in silver bullion, against $6,185,000; $25,984,687 in fractional silver currency, against $24,635,561; $22,774,830 in paper currency, against $18,221,826. The national banks held $107,222,169 of gold coin and certificates, against $102,851,032 in 1880; $7,112,567 of silver dollars, against $6,495,477; $77,630,917 of currency, against $25,828,794. The State banks held $19,901,491 of gold, against $17,102,130. In the savings - banks there was $11,782,243 of currency, against $17,072,680 in 1880 at the same date. The total amount of coin and currency in the Treasury and the banks on November 1, 1881, was $537,583,083, as compared with $485,668,362 on the same date in 1880. Deducting the amount thus retained from the total amount in the country, the amount of money in the pockets of the people on November 1, 1881, was $918,048,519, against $817,050,364 in 1880.

The total amount of silver dollars coined up to November 1, 1881, was $100,672,705. Of the $66,576,378 in the Treasury, $58,838,769 was represented by certificates in the hands of the people and the banks, leaving only $7,737,609 actually belonging to the Treasury. Of the $100,672,705 coined, therefore, $34,096,327 were circulating in the form of coin and $58,838,769 in the form of certificates. The remainder of the silver, $85,364,660, is in subsidiary and trade dollars and bullion, of which $29,409,262 is in the Treasury, and $55,955,398 is in use in place of the previous fractional paper currency, which at its highest point, on March 23, 1874, amounted to $49,566,760.

The product of the precious metals in the United States reached its highest point in 1877, when the mines of Nevada alone yielded $51,580,290-within a few hundred thousand dollars of the total product of all the States and Territories in 1870. Since that time there has

been a progressive decline in Nevada, where the product sank to $15,031,621 in 1880, but a large increase in Colorado and Arizona. Utah has fallen off slightly, but Dakota more than makes up the deficiency, while the production of California remains at about the same figure which it has now maintained for some years. The fluctuations in the product of the various States and Territories since 1877, the year of the largest production, may be seen from the following table, made up from the annual reports of Wells, Fargo & Co.:

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1880.

California... $18,174,716 $18,920,461 $18,190,973 $18,276,166
21,997,714 15,031,621
1,087.961
85,336
2,091,300

Nevada..

51,550,250 35,151,949

Oregon

Washington..

Idaho...

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1,059,641

The net imports of specie amounted to $91,168,650, against $75,891,691 in the fiscal year 1880.

During the first six months of the year the stock and security markets exhibited an activity almost unparalleled. A veritable struggle among buyers for every investment of ascertainable value had given to the market a constant character of intense pressure and eager excitement, such as usually marks the sharp and brief crises in the game of stock speculation when operators are threatened with checkmate. The unprecedented production of the country for the two years previous, and the profitable disposal of a large surplus abroad, were the cause of the strong demand for investments. The earnings and profits of the peo105,164 ple were so great an aggregate that the demand was in constant excess of the supply, and vast sums were invested at rates of interest 2 or 3 per cent lower than any which had ever before been accepted as permanent in America. The simultaneous redundancy of capital in London and Paris sustained the investment market; though the placing of great blocks of American stocks and bonds in the European market was no longer possible, for of dubious stocks the Europeans had grown wary, and on valuable investments the returns exceed but little the average interest in their own countries. The discrepancy was quite balanced by their comparative unfamiliarity with the conditions of the enterprises offered, and the certainty of occasional legal disputes and uncertainty of their issue.

1,191,997 1,218,724 92,226 73,311 1,832,495 1,868,122, 1,894.747 2,644,912 8,763,640 3,629,020 3,522,879 6,046,613 5,468,879 6,450,953 21,284,959 453,813 622,500 711,300 2,287,988! 1,942,403 4,123,081 1,500,000 2,215,804 3,205,987 4,472,471 1,482,992 1,594,995 1,653,871 2,090,557 1,177,160 1,283,460 976,742 844,867 Totais.... $98,421,754 $81,154,622 $75,349,501 $80,167,936

Mexico..

B. Columbia.

The decline in the product of Nevada, which amounts to $36,548,679 as compared with 1877, is mainly due to the decreased product of the Comstock, which in 1880 yielded but $5,312,592 as against $37,911,710 in 1877, a falling off of $32,509,118; but some of the other districts have also declined, as for instance the Eureka, which yielded $4,649,025 in 1880 as against $5,840,261 in 1879.

The production of gold in the United States in the fiscal year 1881 is estimated, by Director of the Mint Burchard, at $36,500,000; that of silver, $42,100,000. As the result of the inquiry into the consumption of the precious metals in the arts, the total use reported by manufacturers for the year 1881 was $10,000,000 of gold and $3,500,000 of silver; $3,300,000 of the gold consumed was reported as United States coin remelted. The Assay Office in New York delivered to manufacturers $5,700,000 worth of gold bars and $5,100,000 in silver during the year. The consumption of gold and silver in arts and manufactures, if all reported, would likely, therefore, amount to at least $11,000,000 in gold and $6,000,000 in silver.

The total imports of gold during the year ending June 30th were $100,031,259, against $80,758,396 in 1880. Of this, $7,577,422 was in American coin, against $18,207,559 in 1880; $61,454,918 was in foreign coin, and $30,998,919 in bars, bullion, and dust. The gold exports were $2,565,132. The silver imports were $10,544,238, against $12,275,914 in 1880. The silver exports were $16,841,715, against $13,503,894 in 1880. There was a net importation of gold of $97,466,127, against $77,119,371 in 1880; and a net exportation of silver of $6,297,477, against $1,227,980 the year before.

As at all times when money is procurable, there were large fictitious dealings on the Stock Exchange. The ascending prices were discounted by speculators. The class who are in the habit of venturing money on their guesses as to the tendency of the market, were more numerous and better supplied with cash than usual. Yet the vast overplus of capital seeking investment, and the steady upward impulse of prices given by genuine competition, left less opportunity for the chancing of heavy wagers and for the finesse and strategy of the stock-gambling game than is afforded by a fluctuating market. The calling in and changing of United States bonds in the first half of the year flooded the market with money, and displaced a large amount of capital. This disturbance greatly augmented the demand, which without it would have been enormous, for permanent investments in property which does not call for the personal enterprise and supervision of the investor. The supply of desirable shares and securities, though outstripped by the demand, streamed into the market in an unprecedented volume. Companies which had years before ceased to divide any profits now began for the first time to return dividends, and their stock rose rapidly in the market. This class of scrip swelled the aggregate values in request with all the effect of a fresh supply. The fresh issues were hardly inferior in mag-.

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