ness of retailers to purchase his commodities, sent ulation was tolerably active. In 1822, a reaction orders abroad for a supply of manufactures wholly commenced in May; some kinds of imported goods disproportioned to the effective demand of the fell 15 per cent. in Philadelphia; and United country. Individuals of every profession were States bank stock, which had been held at 115 in tempted to embark in speculation, and the whole February, was sold in New York on the 1st of community was literally plunged in debt. The May at 102, and before night had fallen to 984. plenty of money, as it was called, was so profuse, The effects of the reaction were felt throughout that the managers of the banks were fearful they the year. In 1823-4, banks extended their opercould not find a demand for all they could fabri- ations, increased their issues, and the spirit of cate, and it was no unfrequent occurrence to hear speculation was excited, resulting in the crisis of of individuals solicited and urged to become bor- 1825. In April (1825) news came of a great rise of rowers, under promises as to indulgences the most prices in English markets, and excited great spectempting. Such continued to be the state of things ulation here. Twenty-seven cents were offered until toward the close of the year 1815." (Quoted for upland cotton, and refused, though the holders in Gouge.) As in New England specie payments would, a week before, have been happy to obtain were maintained, this speculative mania was not 20 cents; cotton yarn, No. 15, rose from 35 to 45 reflected in our table. The abuses of "banking," cents; Muscovado sugars advanced a dollar on a which at that time was considered to be issuing hundred, and St. Domingo coffee rose from 17 to notes, were the main cause of the fluctuations in 21 cents per pound. The rise in the prices of prices from this period even down to 1860. Almost tobacco, drugs and spices was very considerable. every state had a circulation of its own, and the The mania applied chiefly to cotton, and lasted scale of depreciation differed in each state. To through May and June. The "Charlestown Pamake the currency more uniform, congress estab- triot" mentioned that "the same parcel of cotton lished a national bank in 1816, and the state banks had changed owners six or seven times within resumed specie payments in 1817. In the next a week without leaving the hands of the factor." two years banks were greatly multiplied in the Corn was uprooted in order that cotton might be west, nearly all issued circulating notes, and con- planted. In July the news of a fall of 3d. a pound ducted their operations in a reckless manner. The in the price of cotton in Liverpool pricked the national bank speculated in its own shares, forcing | bubble and precipitated a crisis. The effects of the price up to $156.50 per share in September, the reaction continued through 1826, in a general 1817, but in December, 1818, it had fallen to $110 dullness of business. "In the southern states the per share. In 1819 the crisis came, and a period consequences were most trying, as the high price of stagnation and depression succeeded. Land in of cotton had led to an over-extension of the cultPennsylvania was worth, on the average, in 1809, ure of that article, and as the planters, encouraged $38 per acre; in 1815, $150; in 1819, $35. “The by the demand for their staple, had plunged them newspapers of 1819 contain numerous accounts of selves in debt to support a splendid style of living. riots, incendiary fires, frauds and robberies. The The manufacturers of cotton were, also, great house committee spoke of the 'change of the sufferers. Cotton cloth, which it cost 18 cents moral character of many of our citizens by the per yard to import in 1825, was imported in the presence of distress.' The distress extended to spring of 1826, at 13 cents." (Gouge.) — We New England, but was less severe there than else- must now retrace our steps, and note two imporwhere. In the west it was intense. * *Stag- tant influences which were beginning to be exnation and distress lasted throughout 1820. Prices erted on prices in this period. During the war were at the lowest ebb, and liquidation went large amounts of capital were invested in manuslowly on. Wheat sold at twenty cents per bushel factures, especially in woolen and cotton mills. in Kentucky. A man in western Kentucky stop- On the return of peace there occurred, as we have ped "Niles' Register" because one barrel of flour seen, an era of speculation, and enormous imused to pay a year's subscription; now three bar-portations were made without regard to the conrels would not. At Pittsburgh flour was $1 per barrel; boards, 20 cents per hundred; sheep, $1. Imported goods were at the old prices. * * Rent of a given house in Philadelphia fell from $1,200 to $450; fuel from $12 to $5.50; flour from $10 to $4.50; beef from 25 cents to 8 cents per pound. Wages were low on half time." (Sumner and Gouge.) In 1821 occurred a slight reaction, but prices fell again in 1822. Stop laws, stays of execution and execution acts were passed, in the hope of relieving the distress. Briefly summarized the course of events was as follows. 1821, business was dull in the beginning of the year. The effects of an expansion, apparently commenced in the spring, began to be felt in June or July, and by October the spirit of spec 141 * * VOL. III. - 22 * dition of the markets and the ability of the pur chasers. During the first three-quarters of 1815 the value of infports was $83,080,073, and from October, 1815, to the same month in 1816, the value amounted to the enormous sum of $115,302,700, of which but $18,000,000 were re-exported. About $70,000,000 of the imports represented woolens and cottons. The domestic manufacturers could not make any progress in the glutted markets, and appealed to congress. The tariff act of 1816, having especial reference to cotton and woolen manufactures, was passed, and as the first really protective tariff it marks the beginning of that long course of legislation which has materially affected the prices of manufactured goods. Henceforward this must always be taken into account, as it artificially raises prices and introduces a disturbing influence. The fact may be noted, with out attempting to trace the effects of the many tariff laws on prices. Manufactures began to extend as population increased, as their demands became enlarged, and as the great natural resources of the country were developed. The introduction of machinery supplanted the household industries, and the growth of a market for manufactured goods allowed the concentration of processes in large establishments, where a more minute division of employments could be carried out; the rise of manufacturing towns, and the wider cultivation of the raw materials of manufactures, accompanied these altered conditions. This resulted in a gradual fall in the prices of manufactured goods, as improvements in processes were introduced, or a wider market, both to buy and to sell in, arose. From this time on, prices of manufactures became steadier, and followed, in a general way, the economic condition of the markets. Another im portant influence consisted in the improved means of transportation and of marketing goods, which brought the producer near to the consumer, reduced the cost of transporting products, and thus extended the markets, while at the same time equalizing prices by allowing a freer and more rapid interchange of commodities in all parts of the country. As early as 1790 Pennsylvania undertook to construct canals, but the attempt was abortive, and ended disastrously. It was not until | the completion of the Erie canal, in 1825, that extensive schemes of internal improvements were laid out. In ten years (1822-32) the amount of tolls collected on the Erie canal had increased from $44,486 to $1,196,008. "By means of this extensive water communication through a country naturally extremely fertile, the farms of the west are placed nearly upon an equality with those of the east, in the vicinity of the great market towns and cities." (Pitkin.) The success attending this canal aroused a spirit of emulation in the neighboring states, and the construction of canals in Pennsylvania opened up the coal fields, thus bringing to the market a most important factor of production. Delaware, Maryland and Virginia also constructed canals, and the spirit for canal improvement passed into Ohio, nearly 400 miles of artificial inland navigation being com. pleted before 1835. Pitkin estimated, that, in 1835, upward of 2,867 miles of canals had been built, at a cost of $65,000,000, and the expenditure had been made chiefly during the previous fifteen years. Steam navigation was being introduced on the rivers, and, beginning with 1826, railways for the transportation of passengers and merchandise were being built, and their rapid extension, superseding in a great measure all other modes of conveyance, has resulted in making the country practically one market. The two important factors in making prices were a vast increase in production, and a greater degree of accessibility Tea. Sugar. Molasses. Coffee. to markets. The population, or market, at each decade since 1830, is in the following table compared with the growth of railroad facilities. YEARS. 1830. 1840. 1850. 1860. 1870. 1880. Population. 12,866,020 17,069,453 23,191,876 33,443,321 38,558,371 Miles of 23 2,818 30,635 52,914 the standard from silver to gold. In 1835 the government was out of debt, and possessed a surplus, and the expansion of bank issues began. A speculative period followed, and speculation in cotton was especially marked. Whereas the price of upland cotton in 1834 was 12.5 cents per pound, in 1835 it was 16.7 cents, and in 1836, 16.6 cents per pound, when its price was suddenly lowered by the stringency in the money market. Thousands of persons had been tempted by the high prices to embark in the cultivation of this staple, and when the fall came, it proved dis- From 1831, with which year our second table astrous. Speculation had extended in every diof prices begins, it may be said that the prices rection, and even to western lands, an unlimited follow almost regular cycles of rise and fall, fol- quantity of which might be had at a fixed price. lowing closely the periods of speculation and sub- The revulsion ran through the whole speculative sequent depressions. Commercial crises occur system. In May a delegation of the merchants periodically about every ten years, and the course of New York represented that real estate in New is pretty much the same in every case. The ex- York had in six months shrunk $40,000,000; in tension of credit may occur under a redeemable, two months 250 firms had failed, and stocks had as well as an irredeemable, currency, but the con- shrunk $20,000,000; merchandise had fallen 30 sequent prices are higher, and their fluctuations per cent., and within a few weeks 20,000 persons greater, under the latter. In 1825, as we have had been thrown out of employment. (Quoted seen, there was a crisis, which had been preceded in Sumner.) The banks throughout the country by inflated prices. The years 1837, 1839, 1857 suspended, and the distress was increased by a and 1873 were each marked by great financial dis- failure of the wheat crop, grain being imported turbances, which were reflected in the industry from abroad. In 1835 wheat was selling at $1.22 of the country. Returning to where we left off per bushel, in 1836 at $1.78, in 1837 at $1.69, and in our examination of prices, in the year 1827 in 1838 at $1.90. The next year it had fallen to money was plenty, but in 1828 there was an $1.24 per bushel. In 1838 a great number of the alarming scarcity of money in May and Septem- banks resumed, but in 1839 came a bank crash, ber, and this continued until July, 1829, when chiefly due to speculation in cotton. Cotton (upgreat distress was felt. Prices ruled low. In land) in 1838 sold for 10.6 cents per pound, in Rhode Island "the embarrassments which have 1839 at 13.3 cents, and in 1840 at 8.7 cents. In been realized in this immediate neighborhood for 1843 it had fallen as low as 6.6 cents per pound, the last ten days, have had no parallel in the his- nor did it recover until 1847. Prices were falling tory of the republic. Men of reputed capital, until 1843, when they began to rise again under who have withstood the shock of former changes the more improved conditions, the banks having and times; men who for the last forty years have resumed in 1842, which allowed a new and stood firm, erect and undismayed before the tem- healthy development of industry and credit. The pests of the times that have assailed them, are prices reached in 1843 have rightly been called now tottering on the verge of bankruptcy and the "low-water mark of the century," as the ruin. Their fall bears excessively heavy on the limit has never since been reached. The fall poor and laboring classes, who, by the way, are in of prices from 1839 to 1843 was not due to any reality the principal sufferers. Within the forced contraction of the currency. The more last ten days, within the circle of the ten adjacent correct explanation of the phenomena is that the miles (Providence), upward of 2,500 people have destruction of the banking system brought with been suddenly and unexpectedly thrown out of it a collapse of the industry of the country. employment, and the distress that such an event The year 1843 was one of the gloomiest in our has produced can be far better imagined than de- industrial history. The grand promise of ten scribed." In the next two years money was plen-years before was now entirely obscured. Morttiful, and prices began in 1830 to rise. "In 1831, which was a year of great expansion, rents rose enormously in many parts of the town (Philadelphia), store goods advanced in price, and such fresh provisions as are sold in the market were higher than they had been at any time since the resumption of specie payments; but the money rate of wages was hardly affected." (Niles.) In 1834 there was distress, incident to the fear of results attending the withdrawal of public deposits from the United States bank, and in the same year prices were influenced by an alteration in the coinage laws which practically changed * * | gaged property was passing into the hands of the mortgagees. Factories were idle. Trade was dull, investments slow." (Sumner.) In 1844 prices began to mend. In 1847 the exports of breadstuffs were very large, owing to a partial failure of the crops in England, and the abolition of the British corn laws opened up a market for the agricultural produce of the country. Immigration commenced to flow into the country on a larger scale, and the internal development of the country kept up with these improved conditions. The discovery of the California mines in 1847 aided this growth, and in the following year large YEARS. TABLE SHOWING THE ANNUAL AVERAGE GOLD PRICE OF STAPLE ARTICLES IN THE NEW YORK MARKET, 1831-81. 1831. 1832.. $5 71.0 5.77.0 $1 18.5 $0 78.2 $0 37.5 $0 69.5 $7 08.5 $0 11.2 $0 11.5 $0 18.0 $0 22.2 $0 09.0 $2 77.5 bbl. $6 30.0 lb. 1.26.0 83.0 45 5 68.0 10 21.0 12.5 13.1 17.5 22.5 09 5 2.87.5 5 64.5 1833. 5.56.5 1 19.3 80.0 40.5 73.5 6 82.0 12.3 12.7 16 5 23.0 12.5 2.72.0 6.62.0 1834. 4.98.0 1.05.8 66.2 35.7 65.9 6.00.0 11.5 12.3 16.2 23 5 12.5 2 38.5 6 24.5 1835. 5 85.5 1 22.0 91.0 48.2 90.5 6 71.0 11.9 12.5 16.5 235 16.7 2.79.5 7 15.0 1836. 7 49.5 1.78.0 1 04 0 52 9 95.0 8 54.5 11.5 13.2 20.5 27.0 16.6 3 36.5 9 61.5 5 37.0 4.50.0 13 4 14.6 1837 8.74.7 1 69.8 1. 07.6 50.2 1. 00.0 9 26 3 10.1 13.0 17.7 25.8 11.5 327.7 9.40.7 5.50.2 4. 30.6 13.0 07.1 1838. 7.88.4 1.90 2 1. 03.5 39.1 83.4 7 81.9 10.3 12.2 16.8 25.2 10.6 347.8 11.23.3 5.69.8 4 45.9 14.1 08.1 1839. 7.30.0 1 24.5 96.8 47.0 865 8. 10.0 10.8 12.5 17.5 24.5 13.3 3.74.5 13 51 0 5.75.0 4.50.0 15.0 15.9 1840. 5 29.5 1.05.5 59.8 34.0 57.0 7 14.5 10.1 12.8 18.2 24.5 08.7 2.51.0 12 82 0 5.75.0 4.00.0 14.6 37.5 1841. 5 58 5 1 18.5 63.8 44.0 62.5 7 56.0 10.0 11.7 18.0 25.0 09.8 2.58.5 1355 0 575.0 3 87.5 14.3 24.3 1812. 5 57.0 1 14.0 65.5 86.5 59.5 6 35.0 08 3 11.0 17.0 22.7 08.0 227.0 10 55.0 5 75.0 3 87.5 12.5 13.5 1813. 4.85.0 98.1 62.1 29.0 55.0 5 11.0 07.2 11.0 17.0 21.2 06.6 2.46.0 925 0 5.75.0 387 5 12.3 09.7 1844 4.67.0 97.5 67.5 31.8 50 0 5.06.0 06.5 10.0 17.5 21.5 06.6 2.67.0 10 78.5 5.75.0 3 87.5 12.1 08.6 1845. 4.93.5 1 04.0 68.5 38.0 548 4.83.0 06.7 08.2 17.2 22.7 06.2 2.62.5 12 56.5 3 12.0 12.0 15 1 1846 5.06.0 1.08.5 74.6 39.5 68.0 5 72.5 07.0 08.3 17.8 23 5 07.3 282 5 10 64.5 2 75 0 11.5 1847 19.6 6 68.5 1 36.5 99.0 49.0 85.5 570.5 07.0 07.7 18.1 23.2 10.3 3.58.0 9.99.0 6.12.0 2.75.0 11.5 09.8 1848. 5.96.0 1 17.5 735 41.4 63.5 5.39.0 06.0 07.1 18.0 21.5 06.1 295 5 8.44.5 6.12.0 275.0 09.1 05.0 1849. 4 51.0 1.24.0 60.1 38 7 62.7 5.59.0 06.9 06 6 17.1 21.5 08.0 2 52.0 10 55.5 6. 12.0 2.75.0 10.0 08.8 1850. 5.55.0 1 27.5 64.7 43 0 62.5 573 0 10.6 12.0 17.2 21.5 12.3 2.60 0 10 79.5 6. 12.0 2.75.0 12.5 13.8 1851. 4.52.0 107.5 73.0 43.5 61.7 5 22.0 09.0 11.5 17.5 20.5 10.2 2 74.0 9.94.0 6 12.0 2.75.0 13.6 37.5 1852. 5. 00.5 1 10.5 81.5 43.0 67.5 5 44.5 08 5 10.8 19.5 23.5 09.0 3 44 5 10 06 0 6 12 0 2.75.0 14.7 30.6 1853. 5 78.0 1 39.0 92.0 47.5 71.0 5. 72.0 09.2 11.2 23.6 29.1 10.6 3 32.0 13 45.5 5.75.0 2 64 5 17.5 25.2 1854 8.94.5 2 21.0 1 19.5 5420 84.5 6. 91.5 10.1 13.1 29.3 30.2 09.0 3 40.5 16. 91.5 5750 2.62.5 21.2 33.6 1855. 76.0 2.43.5 1 33.5 59.5 99.0 6.36.0 10.0 13.5 24.0 29.7 09.2 3.84.0 20 10.0 5.75.0 3.29.0 21.4 19.1 1856. 42.0 175.5 96.0 43.2 70.5 6.87.5 10.7 14.2 25.0 31.2 10.6 386.0 20 89.5 5 83.0 4 46.5 26.5 07.7 1857. 5.78.5 1 67 94.0 52.6 81.0 6 11.0 11.0 15.4 24.7 30.1 14.0 3 77.5 20 50.0 6.39.0 5 37.5 3 69.5 32.7 08.5 1858. 4.29.5 1 32. 72.0 45 0 80.5 5 22 5 10.3 15.8 23.2 26.0 13.0 3.38.0 11 65.0 6.49.0 5 28.5 3 58.0 24.3 06.5 1859. 5 11.0 1 855 48.0 86.2 5 31.0 11.2 14.5 26.1 11.4 4 11.5 15 93.0 6 25.0 5.30.5 3 06.0 25.5 11.8 1860. 5 19.0 1 49.5 82.5 41.7 74.0 5 52.0 13.5 15.5 26.2 10.5 3 48.5 16 71.0 6 25.0 5 12.5 3 14.0 23.5 13.2 1861. 4.96.5 1 42.5 ΤΟ Ο 355 61.0 5245 13.7 17.5 24.2 16.1 3. 05.0 11 63.5 1862. 4.56.0 1.29.7 70.1 42.3 55.2 5 02.8 19.4 23.9 26.5 36.3 3 42.6 13.52.7 1863. 3.92.0 1 12.9 73.3 52.9 61 3 5.97.0 20.8 25.1 28 6 51.2 3.98.5 12 02.9 6.44.2 4 76.4 2.95.5 19.7 15.1 1864.. 3.96.6 95.5 77.4 45.6 73.9 4 93 5 20.4 23.4 27.4 55.8 3.70.1 7 00.5 0 10 9 5 35.6 4 03 8 2.89.9 15.6 12.5 1865 4.90.1 1 37.3 75.8 46.9 78.6 7 26.0 15.5 19.2 34 9 37.6 5346 11.97.0 13 2 8.21.4 5 51.1 4 23.9 15.7 22.9 1866. 5 62.3 2.09.0 74.5 38.0 64.2 6 76.5 14.6 18.6 32.9 28.2 4.98.8 13.80.0 14.5 9.08.0 5.50.2 3 81.6 14.0 34.7 1867. 6 63.4 2.05.9 1.07.2 87.6 5 21.2 13.4 17.9 25.9 19.7 4. 91.9 13 93.1 13.9 9.12.5 5.00.7 8 22.7 15.1 41.8 1868. 5.66.4 1. 81.9 1 35.0 58.4 84.6 5.53.9 12.0 16.7 22 8 19.3 4 70.5 15.08.0 14.1 8.36 6 4 56.4 2 86 4 14.8 26.8 1869 4.30.5 1 24.1 97.6 54.8 76.2 6.64.2 09 3 17.3 24.4 22.4 5.59.2 20 44.4 15.7 10 59.0 4.88.8 3.00.8 16.8 11.5 1870. 4 37.5 1 19.4 88.9 52.2 84.8 4.38.1 13 3 18.3 25.7 18.5 5 93.1 22 18.5 12.7 12.83.2 5.38.2 8 11.7 19.8 14.7 1871 5 23.8 1 41.4 89.4 53.7 68.1 6.48 8 14.7 18 3 27 2 160 5 18.2 13 79.7 13.2 13 20.1 5 14.6 2 68.5 22.7 14.4 1872. 5 52.6 1 58.4 81.8 42.7 60.7 4.33.6 17.3 18.9 37.2 18.4 5 10.7 11 92.1 14.6 13.62.7 5246 2966 23.8 45.1 1873.. 5 13.4 1 57.0 84.2 43.0 55.0 4.36,5 17.5 19.7 35.6 165 5 32.4 15 71.2 14.9 15.96 7 3.88.1 3 25.9 22.9 38.6 1874. 4.61.2 1 36.3 91.8 67.4 80.6 5 10.3 19.7 23 0 24.2 14.8 4.77 2 12.75 4 14.3 17 22.8 5 51.0 8 27 3 22.6 25.5 1875. 4. 28.1 1 22.0 84.9 54.6 70.2 5.02.8 16 0 22.6 25.2 13.0 5.438.4 15.10.3 12.7 17.09.5 4.28.4 2.46.8 19.7 14.9 1876. 392 6 1 18.5 71.8 36.1 51.2 4 19 O 14.0 18.8 27.8 10.5 5.79.2 16.88 2 12.5 17 78.0 4.84 9 2.60.4 17.7 17.5 1877 5 40.3 1.60.7 76.0 42.4 58.3 338 7 15.8 22.5 27 6 11 1 6.03.8 19.55 7 14.3 15.83.6 5 15.1 8. 00.5 21.3 11.4 1878. 8 92.4 1.24.2 64.1 32.8 51.3 3.54.9 13.5 22.2 25 8 10.7 5.65 4 18.55.0 14.8 13 39 2 5.45.3 3 12.4 20.2 10.5 1879. 4. 10.5 1 22.3 68.3 38.5 49.0 2.89 8 14.7 24.0 23.1 11.4 5. 27.7 19.40 0 14 62.0 5.65.0 3.15.0 21.1 27.5 1880 4.13.5 1.25.3 93.4 43.8 54.7 4.08.9 12.8 21.6 28 0 12.1 5.99.6 17 20 0 18 02.0 6. 00.0 8.15.0 21.1 19.7 1881. 4.43.9 1.30.7 1 02.4 48 4 62.5 4.21.6 11.6 17.3 18.3 25.0 11.5 5.44.9 18.90.0 6 21.9 8.81 0 240 20.1 Glass. Rifle. Blasting. Hides, South] American. Hops. |