tities required for the use of the prairie settlements, where wood is of course very scarce. The Illinois Canal carries westward the larger portion, but the Illinois Central Railroad also carries considerable, and Southern Wisconsin is now supplied from Chicago rather than as formerly from Milwaukee. From all the sources of supply the demand is usually large, and is applied not only to the construction and reconstruction of dwellings, of which at least 200,000 new ones are required yearly, but farm fences, shipping, railroads, factories, and furniture in constantly increasing quantities. Although other materials, such as bricks, stone, and iron are coming largely into use in place of lumber, yet the use of the latter far exceeds the growth. It is estimated by the most experienced and intelligent lumbermen, that the new growth of timber falls short by at least 30 per cent of the quantity necessary to make good the stock. In ship building the dearth of timber has long been felt, and means have been taken to make substitutes for certain descriptions, without much success. At present the lumber market, although much affected by the war, which destroyed the trade in lumber at the South and changed the current of business, has been swept by the Federal Government, whose wants for war purposes are unusual and very extensive. The effect of this, added to the general inflation by reason of the over abundent issues of paper money, have, since the 1st of January, 1863, caused a rise of about 25 per cent in the price of lumber. We now add a particular report of the lumber trade at the two points of most importance to the trade, made up from the trade reports. CHICAGO. At the close of the year (1862) the different yards in Chicago had, of all kinds of lumber, shingles, lath, posts, etc, 73,000,709 feet. The following tables show the quantity of lumber, shingles, and lath received and forwarded during 1862: QUANTITY OF LUMBER, ETC., RECEIVED AT CHICAGO DURING 1862. ALBANY, (TIDE-WATER).-The position of Albany, at the termination of the Erie and Champlain Canals, and with the Hudson as a distributing avenue, must always make it an advantageous and important point to the lumber trade. By means of these canals it has, as stated by Mr. LACY, in his report to the Albany Board of Trade, "open water communication with the whole lumber producing regions of Canada, Michigan, Wisconsin, and Northern Pensylvania," and through the Hudson is able to distribute its receipts throughout the world. We give below the official receipts by the canals at tide-water during the past twelve years: RECEIPTS AT TIDE-WATER OF LUMBER, SHINGLES, ETC. COMMERCIAL CHRONICLE AND REVIEW. ON FLUCTUATING CURRENCY-CHANGE IN VALUES-OSCILLATIONS IN TRADE-ALTERNATE ANIMATION AND DEPRESSION-COST OF IMPORTS-SUGAR PRICES-GENERAL INFLUENCE-RESTRICTIONS GOLD DEALING-HIGH PRICES TO CONSUMERS-LEGAL TENDER EFFECT ON BANKS--CIRCULATION OF-NEW YORK CONSTITUTION-SPECIE PAYMENTS-DUTY OF SUPERINTENDENT-MANDAMUSSPECIE MOVEMENT CALIFORNIA REMITANCES-BILLS OF EXCHANGE-PRODUCE-EXCHANGE TABLE RATES OF GOLD-DEBTORS ABROAD-PRICES COMPARATIVE-IMPORTS-DUTIES-VARYING COSTTAX ON CONSUMERS-EXPORTS-DEPRESSION OF BUSINESS-GOVERNMENT STOCKS-CONVERSIONS OF FIVE-TWENTIES-PRICES-CONFEDERATE LOAN-NATIONAL CREDIT. THE most prominent influence upon the market has continued to be the fluctuating value of the paper currency, in which the values of goods are measured. That disastrous agency makes and unmakes fortunes at a turn, baffling the foresight of the most sagacious. In that effect of paper may be recognized one of its greatest evils, since the mere depreciation, if it were continuous, could be calculated upon and guarded against; but when the measure of value itself becomes the subject of speculation, and may be depressed or inflated by the hand of the issuer with the same ease as that of the aeronaut in governing a balloon, the wages and property of every one become the prey of the initiated spoiler. The great change in the prices and cost of commodities is one of the evils, but the spasmodic action of the markets is another as great. While gold rises the utmost desire to buy any and everything pervades and trade is very animated. A combination of brokers, then, by acting upon gold and bringing it down, paralyzes, as with the wand of an enchanter, the whole business community, and suddenly no one wants to buy anything. Thus a few thousand dollars lost in "bearing" the gold market, affects all property from the Atlantic to the Rocky Mountains, undermines every industry, and jeopardizes the weekly income of every family. The following figures show the effect upon a single article-that of sugar-imported into New York for four weeks: Thus week by week sugar rose and fell per pound, although the first cost abroad did not vary materially. The fluctuation in paper caused a fall of 13 cents per lb., or 17 per cent for the week March 28, as compared with March 2. In the next week a rise of of a cent took place, but the market, from being animated with the rise in February, became completely dead. The sugars that cost 93 cents in February could find no buyers at 8 cents March 28, and the subsequent slight advance restored no vigor to the market. The same evil influence pervaded all markets, and many importers were compelled to appeal to the auctioneers. The idea held out, that the Treasury department would be able, aided by the bills in Congress and the Legislature against dealing in gold, to bring government money up to par, simply killed all business, because none would buy when there was a hope, however fallacious, that prices would fall heavily. In March the paper depreciation, as seen above, raised the price of sugar 4 cents per lb., viz: 1.8 cent premium on gold to pay duty, and 2.29 cents in the rise of exchange above the gold par. If paper should again be equal to gold those sugars that cost 9.78 cents would cost but 5.59 cents-a fall of 43 per cent-and this enormous decline threatened all goods alike. It is therefore no matter of surprise that trade came to an end. The most sagacious and intelligent merchants understood the position, and conscious that there was, despite the temporary gambling efforts to raise the price of government paper from 60 cents per dollar, no possible alternative but a further decline, held their goods firmly, and retailers and consumers were compelled to pay for daily wants the highest prices. They had no benefit from the spasmodic reactions. Another influence upon the market besides the withholding pay from the government creditors and the buying of greenbacks on speculation, based on the effect of the restrictive laws upon gold dealing, was the fear that the courts would pronounce the legal tender of the government unconstitutional, and that the banks, in consequence, would be held reponsible in specie for their issues. This apprehension caused a contraction of issues which may be expressed in the banks of three cities: Thus at these central points the circulation nearly doubled, based on "greenbacks," during the summer. They then began to curtail, and drew in $4,000,000, when it became understood that the New York Court of Appeals, although composed of democratic judges, would, as matter of expediency, pronounce in favor of the legal validity of greenbacks as a tender. The constitution of the State requires all banks to pay their bills in specie without reference to legal tender. They are also required to give ample security that their bills shall be paid in specie. Under this constitutional requirement it is the imperative duty of the Bank Superintendent to compel them to deposit securities as fast as gold rises. The bills of the banks that have not paid in specie have many of them been protested and sent to Albany to have the law complied with. The officer does not do it, and the case comes before the courts for a mandamus to compel him to carry out the law. It is evident that all values in the country having risen 50 per cent as measured in the paper, it would be ruinous to the many to pronounce that paper illegal. In the same manner the Court of Appeals, we think, at its first organization pronounced in favor of the constitutionality of the free banking law, in the case of the North American Trust Co., to protect "vested interests." In the present instance the protection is but temporary, since creditors will be first ruined and ultimately all classes. Nevertheless, the fear of being held accountable being removed from New York banks, and through them from others, gave a new impulse to the expansive movement. The attempt of the New York Legislature to re strain the dealing in gold had a tendency to extend the business to Jersey City. The exports of specie continued very considerable, notwithstanding that the paralysis of business caused a great decline in the demand for bills on the part of the importers. The specie movement was as follows: SPECIE AND PRICE OF GOLD. 1862. 1863. 1,277,788 627,767 Received. Exported. Received. Exported. Gold in bank. Prem. on gold. 726,746 86,770,746 34 a 89 1,880,247 87,581,465 40 a 49 780,816 88,549,794 47 a 50 31. 310,484 1,331,027 88,894,840 487 a 601 February 7. 854,000 39,512,256 71 a 72 733,643 39,705,089 521 a 53 3,540,550 36,110,085 54 a 54† 249,514 1,201,907 33,955,122 53 a 54 159,105 1,050,156 34,317,691 41 a 42 673,826 250,778 478,885 34,257,121 53 a 54 1,505,728 250,728 607,059 35,406,145 46 a 524 693,436 217,602 158,487 86,761,696 52 a 531 Total.... 7,507,264 10,292,021 6,275,188 16,355,225 The exports from Boston were also pretty large, while, on the other hand, the receipts from California continued to be very limited. The larger portion of the remittances thence being to England. The effect of the bill before the New York Legislature to interfere with the rights of property in gold was, to cause it to be sent to England, where, being drawn against, the bill would pay well in New York. The most hurtful of the measures contemplated by the New York bill was the prohibiting the banks to lend on bills of exchange, which are, so to speak, the vehicles of commerce, and form the most important as well as the safest of the paper legitimately taken by the banks. The decline in bills operated adversely upon the prices of produce, causing a decline and diminishing the activity of shipments. The rates of bills were as follows: |