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of large institutions, a certain direction is given for a length of time to the capital of the country, that all old interests conform to that direction, and new interests are formed by it and dependent upon it. Thus, after the close of the old war, the debt of the Federal Government was, in 1796, $83,762,172 -and that comprised all the public stocks in the country, as there were but very small State debts. The old United States Bank was in existence until 1811, and very few other stocks were outstanding. In all that time, the Federal Government paid off into the hands of private capitalists, in discharge of its debt, principal and interest, $142,907,991, of which $12,812,831 was foreign debt. There were no other stocks to absorb this money as it flowed from the Government, and it constantly sought and found legitimate employment in forwarding the real interests of the country in the hands of the industrious. The breaking out of the war changed
From 1791 to 1816 From 1816 to 1836 Total
As we have stated, up to 1812 no new stocks were created. In all that time the business of the country was constantly receiving accessions of capital. After 1820 this was not the case, because, as fast as the United States debt was paid off, other stocks were created, and no new capital was applied directly to industrial employments. The movement of banks does not assist in enhancing the wealth of the country.
this state of things; all commercial interests were paralyzed, and the funds which had been employed in those pursuits found employment in the renewed loans of the Government, whose debt rose from $45,209,737 in 1812, to $127,334,933, in 1816. The Government had thus withdrawn $82,100,000 from other employments, and devoted it to military uses. The war did not last long enough to create any large interests dependent upon its continuance. In 1817, the old course of things: was renewed; that is, Government began to throw off annually large amounts of money in discharge of its debts, to seek other employments. A new United States Bank was created, and absorbed $35,000,000 for its capital; but the country was in a deplorablecondition until 1820, when the payments on account of the public debt became regular, and continued until its extinguishment in 1835. The payments of the Government on account of the public debt were as follows:
It merely facilitates the interchange of that wealth after it is produced. In order to observe the actual progress of the creation of stocks, we will take the following table, showing the outstanding amount of three descriptions of stocks, at different periods. An enormous amount of capital was invested in the capitals of companies of various descriptions, which is not taken into the account.
AMOUNT OF PUBLIC AND BANK STOCKS OUTSTANDING IN EACH YEAR SINCE 1820.1
The smallest amount of public stocks, it will be observed, existed in 1835, when $66,483,186 of State stocks comprised all. In the subsequent three years, $108,000,000 of State stocks were created, of which over $40,000,000 was for bank capital, and is therefore also embraced under the head of Bank Stocks. It then appears, that after the final discharge of the Government debt in 1835, $330,000,000 of stocks were created, forming a constant drain upon the capital employed in all other pursuits. A large amount, indeed, came from abroad. Most of these banks and State debts were created by the Southern and Western States, with foreign and Atlantic capital. Hence, in the lapse of eight years, near $400,000,000 set in a constant stream from the Atlantic border to the interior; not to be applied to the stimulation of industry, and in the hands of the mechanic and farmer, to enhance the real wealth of the country, but to build, in many cases, useless public works, and to be used in banking operations to facilitate trade, not productive industry. The immense amount of money which could be had for this purpose, tempted the farmer to leave his plough, and become speculator and trader. As long as the money continued to flow in that direction, every one was apparently prosperous. The country, however, became rapidly impoverished. There were more dealers than producers. There stood ready two merchants to do the business created by the industry of one producer. The end was bankruptcy, the delinquency of $115,000,000 of State stocks, the failure and liquidation of $80,000,000 to $90,000,000 of bank capital, and the passage of the Bankrupt Act to expunge $350,000,000 of individual debts. A new direction is now given to capital. Instead of the Western States drawing money from the Atlantic border for loans contracted, or subscriptions to bank capital, or
credits to individuals, they are sending back the wreck of that before borrowed. The interest on the public debt is to be paid by the farmers, the remains of the bank capital in liquidation is returning to its owners, and the dividends on bankrupt estates are going to the Atlantic creditors. The money drawn from the Atlantic States by stocks and traders is flowing back out of the pockets of the farmers. Capital, therefore, accumulates on the seaboard, and will find employment in a new direction. The money which thus accumulates in the banks, being the realization of former loans, and left inactive by the maturity of paper, without a corresponding creation of new, is the reflux of capital from employment in a false direction, as is evident from the fact, that while this apparent abundance exists on the seaboard, the industrious and agricultural sections of the country evince a comparative scarcity. The accumulation of capital in the hands of private individuals, the result of successful enterprises, has, during the past few years, been exceedingly small. We believe there are very few industrial or mercantile employments that have more than maintained the capitals employed in their prosecution, without throwing off anything to seek permanent investment in other channels. Certain it is, that in very many branches of business, old reserved capitals have been severely trenched upon to meet the wants of regular business, under the falling prices and depreciating values of late years. The continued fall of prices has uniformly, until the present year, swept away anticipated profits. The extent to which capital has been annihilated can be judged of by the operations of the Bankrupt Act. The state of Illinois, with a population of 476,000 inhabitants, and one of the most fertile states of the Union, exhibits the following results:
their debts; but the amount of capital which has perished will average larger in other states than in Illinois. Events such as these have greatly reduced not only the general means of holding stocks for permanent investment, but have diminished the capital really necessary for the prosecution of industry; and it is by no means certain that, when the capital now seeking investment at low rates of interest, and raising the prices of the best stocks, shall have become fairly active and healthfully employed, anything like the present average rates of stocks can be maintained, until capital has recovered itself. It is true, that the lowest points of depression have been apparently reached. The real wealth of the country is extremely abundant, and an upward movement is already commenced. We believe that, as a general thing, all investments made in western produce during the past spring have yielded profitable returns, and that business in that direction is rapidly improving. This forms the groundwork of the national prosperity. With a rise in agricultural products, all the springs of national industry are put in motion, and the accumulation of capital recommences, and rapidly progresses. Unfortunately, the untoward legislation of the last Congress has wonderfully retarded the progress of improvement, by hampering the outlet for produce. One of the worst effects of the paper mania, which yet overshadows the country, is the innumerable mortgages upon their lands, which the cultivators of the soil were induced to execute. Those mortgages doubled in value when prices fell. In 1837, twenty barrels of flour would pay a mortgage of $200; in 1840, the same mortgage required forty barrels; and thirty-two barrels will now discharge it. Had not foreign sales of produce been interdicted by the tariff of the 27th Congress, twenty-five barrels would probably now have sufficed for the same payment. As it is, the reduced tariffs of England have much enlarged the markets there for western produce,
and that trade promises to become very important. As the prices rise, mortgages become more easily paid, taxes are cheerfully discharged, trade revives, and capital accumulates. This process has now commenced; and with its progress, should the public debts be confined within their present limits, outstanding stocks will eventually recover their values, and be sustained at par. During the coming year, however, a great change is to be expected in financial and commercial affairs as influenced by the movement of the Government. When the now dominant party came into power, the expenditures of Government were brought within a narrow compass, and the revenues under the supposed settled policy of the Government fully adequate to meet them and discharge the small debt then due. In grasping the reins of government, the rallying cry of "change" was effectually carried out. Without inquiring into the expediency of any existing regulations, a "change" was speedily effected. For economy, was substituted increased expenses. For the orderly Sub-Treasury, chance and confusion. For frugal revenue, laws, and ample means, according to the great national compromise, a prohibitory tariff, and its appendage, a bankrupt treasury. For high national credit, the rejected supplications of a travelling loan-agent in the foreign market. For a progressive liquidation of debt, a rapid increase of it. Disorder followed disorder, until the party, falling to pieces, leaves an inefficient executive; without permanent commercial policy; with no financial system; with a deficient revenue and an increasing debt, of which $5,668,000 falls due in January, 1844; and without the confidence of the people, or the support, scarcely, of the executive patronage, it is to encounter the stern inquisition of a Democratic Congress. This is a position of affairs which makes further
change" inevitable; and its influence upon national prosperity will be proportionate to the speed and promptitude with which it is effected.
NEW BOOKS OF THE MONTH.
Illustrations of the Croton Aqueduct. By F. B. TOWER, of the Engineer Department. New York and London: Wiley & Putnam. 1843. 4to. pp. 152. A Memoir of the Construction, Cost, and Capacity of the Croton Aqueduct, compiled from Official Documents; together with an account of the Civic Celebration of the 14th of October, 1842, on occasion of the Completion of the Great Work: preceded by a Preliminary Essay on Ancient and Modern Aqueducts. By CHARLES KING. New York: Printed by Charles King. 1843. 4to. pp. 308.
We have here two elegant volumes, appearing simultaneously, on the noble work to which both in their title-pages refer the one, (that by Mr. Tower), as the private enterprise of its author; the other, under the auspices and at the cost of the city whose recent noble achievement it is designed to illustrate. No individual could have been selected, better competent for a duty of that character, than the accomplished and intelligent gentlemen to whom, by a unanimous vote, it was entrusted by the committee of the Common Council charged with the business of the grand civic celebration of last October, in honor of the completion of the Aqueduct. We willingly score off from Mr. King's account several items of his political sins, in his editorial capacity, in consideration of the very creditable man
ner in which, under all the pressure of the labors incident to that capacity, he has performed the public service whose fruits are here before us. His Preliminary Essay on ancient and modern aqueducts, and other hydraulic contrivances, with a notice of the various water-works that have been constructed in other cities of the Union-miniature as they all are in contrast with the magnificent work of New York-is an interesting and well-compiled epitome of knowledge on the subject, to which all accessible sources have been made to contribute. The history of the enterprise is given in minute detail-more minute, indeed, than is likely to interest the general reader, though doubtless appropriate to the design of the work committed to his hands. In the account of the celebration, we must remark, that the literature of the age would not have suffered inconsolable loss, if some of the "docu
ments" there displayed in such imposing typography had been omitted. However, we suppose it was all officially proper and necessary.
Mr. Tower's volume possesses the advantage, which must of course recommend it more to the general public patronage, that it is embellished with a large number of beautiful views of the most remarkable portions of the work, drawn by the author, (himself one of the engineers employed in the construction of the work), and finely engraved by Gimbrede and Bennett. He has in this respect, as well as in the general typography of the whole volume, exhibited a liberal disregard of those economical restrictions of which Mr. King hints a just complaint against the public authorities; and we hope he will not fail to receive that remuneration to which he has so well entitled himself. The plates are numerous and excellent, and serve to fix on the eye that image of the views they represent, which no mere verbal description can make visible to it. The account given of the history and construction of the work is succinct and clear, and is also preceded by a notice of other aqueducts, ancient and modern, similar to that of Mr. King, and drawn from the same sources, though somewhat less extensive. We purpose recurring, on another occasion, to this interesting subject.
Physiology Vindicated, in a Critique on Liebig's Animal Chemistry. By CHARLES CALDWELL, M.D. 8vo. pp. 110.
The dazzling impressions produced by the first appearance of Liebig's Animal Chemistry are now gradually giving way to" sober second thoughts." In England, France, and our own country, the writings of the German professor have recently undergone the most strict and severe ordeal; and among these critiques, that of Professor Caldwell holds a prominent place. Professor C., by the way, is a powerful writer, his productions being always characterized by beauty of diction and profundity of thought.
Believing that the celebrated Professor of Giessen, with his hosts of propagandists both in Europe and America, metamorphoses man, with all his attributes, corporeal and mental, into a mere chemical product, Prof. C. deems
himself called upon, as a teacher of medicine, to stand forth as the champion of the philosophy of life, against this new and formidable foe. Professor Liebig, it is true, declares his belief in the superintendence of vital laws; but at the same time, his whole theory indicates a determination, on the part of Chemistry, to usurp dominion over the whole philosophy of living organized matter. That Liebig's hypothesis of vital temperature is exclusively chemical, regarding it as the result of combustion, and thus denying to vitality all the shadow of agency in its production, would appear from the following extracts::-"In the animal body," he says, "the food is the fuel; and with a proper supply of oxygen, we obtain the heat given out during oxidation or combustion." Again:-"The animal body acts, in this respect, as a furnace, which we supply with fuel."-"Chemical action is amply sufficient to explain all the phenomena."-"There exists not, in the animal body, any other known source of heat, besides the mutual chemical action between the elements of the food and the oxygen of the air." These extracts most assuredly fix upon the German Professor, a chemical hypothesis to the exclusion of all vital laws, as regards the production of animal temperature; and it is to an examination of Liebig's peculiar theory, in this respect, that the greater portion of the "critique" is devoted. be foreign to the character of our journal, As it would to enter into a detail of this question, it will suffice to express our decided conviction, that, so far as regards the production of vital temperature, the multiplicity of facts and arguments adduced by Professor Caldwell are wholly irreconcilable with every chemical hypothesis. That Prof. Liebig looks quite too much upon the animal organism as a mere machine, subject to the same laws that govern inorganic matter, has been successfully demonstrated by Prof. Caldwell.
We are aware that in thus coinciding with the views of our author, many of our readers will be taken by surprise; but it has now, we think, been satisfactorily determined that Professor Liebig, high as are his order of intellect and his just rank in science, yet, as regards physiology and pathology, often makes the mosthasty and unaccountable generalizations, jumping at new and startling conclusions, long before he has determined the universality of his facts. As a chemist, however, the Professor of Giessen has no superior; but high as his name must ever rank in Organic Chemistry, he will one day regret that before giving this work to the world, he did not test his generaliza
tions by the infallible touchstone of time, reflection, and experience.
Clontarf; or the Field of the Green Banner: an Historical Romance, and other Poems. By J. AUGUSTUS SHEA. New York: D. Appleton & Co., 200 Broadway. 1843. 12mo., pp. 156.
from the press generally a favorable verMr. Shea's poem has already elicited diet, to which we take pleasure in adding it that sustained uniformity of merit our concurrence. Without claiming for which a longer period of elaboration might have secured, it contains not a few racteristic of the nationality of its subject passages of fervor, force and beauty-chaand author. The warmth of patriotism which glows over its pages will alone suffice to commend it to the heart of every Irish reader, independently of its just claims on his taste.
ter pleased if its modest and worthy au-
"But thou art alınighty-
"But when thy deep surges
Is drawn out like a scroll,
Travels in Egypt, Arabia Petrea, and the Holy Land. By Rev. STEPHEN OLIN, D. D., President of the Wesleyan University. New York: Harper & Brothers. 1843.
These volumes of a distinguished minister of the Methodist Episcopal Church, supply an important deficiency in the records of our modern knowledge of the East. Mr. Stephens, by his charming "Incidents," threw the interest of romance