The city of Chicago stands at the mouth of the Chicago river, with a population of about 40,000, and, as the river debouches into the head of Lake Michigan, is therefore the inmost port of the lake, and the farthest advanced into the country, which supplies its export and consumes its import trade. It is, on this account, most favorably situated for a commercial depot. The river within a mile of its mouth being made up into two affluents, the northern and southern, the city lies on both banks of the main river, and to the west of both the tributaries, with floating bridges whereby to facilitate easy communication for the citizens. Four miles south of the city, the Illinois and Michigan canal falls into the south branch at a place called Bridgeport, and up to this point this stream is navigable for the largest lake craft. The first level of the canal is fed from this stream by means of huge steam-pumps, which are constantly employed in forcing water to the height of about eight feet. On entering the canal, therefore, the boats first ascend a lock of about eight-feet lift, and thence, on their way to the Illinois, continually lock downward till they reach the lower level of that valley. This canal is ninety-eight miles in length from Bridgeport to Peru, on the Illinois, and by means of it the waters of the Mississippi and the lakes are united, so that canal boats can readily pass from Chicago to St. Louis, and vice versa, as indeed to any point of the Illinois river, without detention or transhipment of cargo.

The Galena and Chicago Union railway is open from Chicago to Rochford, a distance of eighty miles, and will soon be finished to Freeport, where it will effect a junction with the Galena branch of the Illinois Central railway. The Chicago and Rock Island road is completed to Juliet, forty miles' distance from Chicago, which is eventually to connect Chicago with Rock island, and which is expected to be completed and opened, within the space of one year, to the Mississippi.

It is proposed to intersect Illinois with a net-work of railways, by which Chicago shall be connected with every portion of the State; and beside these lines, two or three others are projected with the intent of connecting that city with Green Bay, Milwaukie, Beloit, and Janesville, Wisconsin, by railway, but it is still problematical whether they will be wrought to a successful termination.

It is owing, doubtless, to the advantageous situation above described, that Chicago owes her rapid growth during the past few years, her enviable commercial position for the present, and her brilliant prospects for the future.

In 1840 Chicago had a population of less than 5,000; in 1850 it numbered upward of 28,000, having increased in one year, as shown by the returns of the city census of 1849, over 5,200; and the lowest estimate put upon the population in January, 1852, is 35,000 souls, while more generally it is rated at nearly 40,000 individuals. No parallel for so great an increase exists.

The following tables will give some idea of the details of the commerce of Chicago, which will be found interesting as showing the progressive business of the city, during a long series of successive years, as well as the alteration of the character of that business, as affected by the continual progression of the country, from an earlier and more imperfect to a fuller and better developed system of cultivation.

The progressive value of the imports and exports of Chicago is exhibited during a series of fourteen years, which will be found to give the best idea of the actual progression of the place.

From 1842 to 1847 the leading articles of export were wheat, flour, beef, pork, and wool. The quantities exported in those years were as follows:

Wheat, bushels. Flour, barrels. Beef and pork, Wool, pounds

From 1848 to 1851 no valuation was made of the importations or exportations; and the valuation of 1848 is deemed so utterly incorrect as to be valueless and unworthy of citation; for the valuation for that year included, under the head of exports, every small bill of sale, whether sent into the circumjacent country for domestic consumption, or shipped, coastwise or foreign, by the lake, for actual exportation. It is therefore set aside.

The following table shows the importations of lumber during the years mentioned:

The table below exhibits some of the leading articles of export from Chicago during the same series of years, and shows the nature and increase or decrease of the trade in various articles:

The country around the city for miles is a level prairie, the soil of which is very fertile; which has given Chicago its great agricultural start, and laid the permanent foundation for its increase.

The Illinois and Michigan canal, which comes into the southern stream at Bridgeport, passes through one of the finest agricultural districts in the State, embracing the valleys of the Au Plaine, de Plaine, Fox, Kankakee, and Illinois rivers, and finally, by means of the latter, opens up to a northern market the great corn valley of the West. This canal was first opened for business in May, 1848, and has, therefore, been but four seasons in operation.

Owing, however, to a partial failure of the wheat crop in this portion of the State, during those three years, the returns of tolls are much smaller than they would otherwise have been. The effect of the water connexion of Chicago with St. Louis may, however, be seen in the impetus given to the population and commerce of the city at or near that period.

The canal tolls in 1848 amounted to $83,773; in 1849, to $118,787; in 1850, to $121,972; and in 1851, to $173,390.

According to Judge Thomas's report, made in compliance with a resolution of the river and harbor convention, in 1847, the first shipment of beef was made from Chicago in 1833; but that shipment must have been very trifling, since, in 1836 the whole exports from the port were valued at $1,009; in 1837 they rose to $11,065; in 1838 to $16,044; in 1839 to over $32,000; and in 1840 to $228,635. In 1840 the imports were valued at $562,106. Since that year the increase in every article of export has been rapid, except wheat, which, for the three years last past, exhibits a decrease.

The commerce of the port of Chicago in 1851 amounts to the sum of $29,805,871, consisting of $5,395,471 exports, and $24,410,400 imports. At first view there appears in this statement a far greater discrepancy between the value of the imports and exports than is usual even in new countries. The difference may, however, be accounted for on this consideration: that, beside large quantities of rich and costly goods, all sorts of ready-made clothing, hats, caps, boots, and shoes, for the St. Louis market, are imported through Chicago, and by canal and river to their destination, all going to swell the importation returns for the extensive and growing trade of this place; whereas, the goods are, from St. Louis, distributed to all sections of the country, as yet too poor and new to remit articles of produce for exportation by the same route. To this it must be added that casual fluctuations in the market prices at Chicago or St. Louis frequently determine the course by which inland domestic produce is shipped to the seaboard, whether by the lakes or the Mississippi, so that there may be an apparent balance of trade against Chicago, when there is none such in reality.

In 1851, Chicago received-mostly from the Illinois-and exported, no less than 3,221,317 bushels of corn; also received by lake, mostly from the lumber districts of Michigan and Wisconsin, 125,000,000 feet of lumber, 60,000,000 of shingles, and 27,000,000 pieces of lath, of which, according to the Chicago Tribune-esteemed the commercial journal of that place most worthy of confidence-54,000,000 feet of lumber were shipped by canal, and 44,000,000 of these reached the Illinois river; 51,000,000 of shingles were shipped by canal, and 47,000,000 of these reached the Illinois; while of lath 12,000,000 left Chicago for the south, of which 11,000,000 passed beyond the terminus of the canal.

The continued failure of the wheat crop in northern Illinois has turned the attention of farmers to grazing and wool-growing, for which the prairie lands are admirably adapted, and of this the results are partially seen in the returns.

In 1851 there were slaughtered and packed, for American and English markets, in Chicago, 21,806 head of cattle. The shipments of

beef during the same year were 52,856 barrels; and it is hardly necessary to say that this beef is of the finest quality, for Chicago beef is at this day as well known, both in the American and English markets, for its succulence and tenderness, as if it had been an established article in the provision trade for centuries, instead of years.

The growth of wool in Illinois is not yet, by any means, developed, the trade in this article not having been ten years in existence, at the utmost, yet the exports of 1851 amounted to 1,086,944 pounds.

Over and above these shipments, increased by the addition of 20,000 barrels of pork, there were exported during the year great numbers of cattle, hogs, and sheep, driven, or transported by railway and steamer, from the prairies of Illinois to the markets of Buffalo, Albany, and New York, alive. If these be taken as the results of the first few years of the grazing business, what may not be expected of the great resources of these prairie States, when they shall be fully developed and brought nearer to market by the railway facilities which are already contemplated, and perfected by the complete stocking of the grazing lands? Hemp and tobacco are also large products of this State.

The arrivals at Chicago for 1851 are as follows: steamers, 662; propellers, 183; schooners, 1,182; brigs, 239; barques, 13; total, 2,279. Tonnage of the season, inward, 958,600.

The enrolled tonnage of the district on the 30th of June, 1851, was 23,105, being 707 tons steam, and 22,397 tons sail.

The following table will exhibit the quantity and value of the principal articles of export and import coastwise, at the port of Chicago, during the year 1851: