different article from that which they produce. On the very. same principle, the Southerners find it to their interest to purchase the gunny cloth of India, imported through England and the North, to use as bagging for their cotton. The Americans, too, by their imports of British and other European manufactures, consume a considerable portion of India and other foreign cottons. Trade never works one-sidedly; as the prosperity of India increases, her demand for goods will be still more considerable. Step by step as the exports of cotton from India augment, her demand for dry goods becomes greater.

A correspondent of The Times,' on August 27, 1863, alluding to the visionary scheme of the African Aid Society' for procuring an adequate supply of cotton from Africa, says:- The identical passage is incorporated in the prospectus of a joint-stock company launched last year for 'carrying on a cotton and general trade with the districts in ' question-with what success up to the present time the public 'would no doubt feel gratified to know; although, as the gen'tleman who was appointed its gérant honourably distinguished himself the other day by an attempt to entrap the captain of the steamer Southerner, then at West Hartlepool, into admis'sions as to the ownership and destination of that vessel, on 'which to lodge an information against her to the Government, it would seem from this evidence of his occasional leisure that the company is not yet in full swing enough to give unlimited 'scope to his activity-unless, indeed, it comes within the com'pass of the scheme to clear the cotton market of the risks and 'chances of Southern competition, and this was one expedient for 'that purpose. Be this as it may, it is clear from the cotton 'importation returns just published that, although the experi'ment has been for some time in progress, the prospect of obtaining any important quantity of cotton from West Africa is so far a signal failure. . . . . To candid and intelligent minds the 'answer is self-evident - viz., that, from whatever cause it may arise, the prospect of any considerable immediate importation of cotton from West Africa is a sheer delusion.' The receipts thence, Jan. to July 1863, were 625 cwt. against 1,250 cwt. 1862.

6

The table (pp. 130, 131), gives the exports of cotton manufactures 1820 to 1862 inclusive :

K

Pounds

Yards

Pounds

Yards

CHAPTER X.

THE WHEAT TRADE OF GREAT BRITAIN, FRANCE, AND AMERICAEXPORTS OF PRODUCE FROM THE STATES.

[This paper on the wheat trade was written about a year ago, and published in 'The Index' on September 18, 1862. There is now no reason to change the views then expressed. The wants of Great Britain have not been greater than in ordinary seasons, although the receipts of wheat and flour within the twelve months have been nearly as large (equivalent to 8,800,000 quarters) as those during the corresponding period ending in 1862. So, instead of the granaries of the United Kingdom having very limited stocks, as was the case on August 31 of last year, they are at present filled to overflowing, and there is probably on hand a greater quantity of wheat and flour than at any former time. The importations of Indian corn have likewise been excessive, 2,500,000 quarters, one-half of which came from America. The warehouses, in fact, are crowded with all kinds of breadstuffs, and prices in consequence rule very low. The wheat harvest of Great Britain and Ireland is supposed to be the most abundant ever known, and the chances are that less foreign grain will be required during the coming year than at any time since 1845. France has resumed her position as an exporter of wheat and flour, and, with Northern Europe, will be fully able to supply any deficiency that may exist in these islands. The exports from the Federal States from September 1, 1862, to August 31, 1863, will amount to about 3,750,000 quarters of wheat and flour, against 6,000,000 quarters the year previous; and 1,250,000 quarters of Indian corn. The shipments from thence for the coming year must necessarily be very trifling in the absence of an European demand; nor is it likely that the surplus produce of the West can possibly reach the figures of the last three seasons, by reason of the scarcity of hands, the drain of men for the war having so reduced the farm labour of the agricultural sections of the country, that women, as in Germany, but for the first time in America, have been employed to reap the crops. It was the rapid advance in the rate of bills on London that induced the large shipments of cereals to this side of the Atlantic; but the decline in the prices in England, in consequence of the

'glut' of produce, has been greater than the anticipated profits. The fall in the value of gold, caused by Mr. Chase's 'bearing' the market, reducing the quotations for foreign exchange, coupled with dull and drooping accounts received from Europe, has put a check upon this commerce, which has supplied the Northern States since the election of Mr. Lincoln, including the freights and insurances, with very nearly forty millions of pounds sterling. This exceptional trade has, therefore, in a measure, balanced the loss to the Federals, by the absence of the handling of cotton and the other productions of the South; and by putting them in possession of an immense amount of specie funds, the grand crash in their finances, which is now imminent, has thus far been avoided.]

THE Course of business in wheat for the past two years is without a parallel in the history of commerce. Under the benign influence of free trade the extraordinary wants of Western Europe have been supplied at moderate prices. The usual annual importations of flour and wheat from all places into Great Britain and Ireland are equivalent to a little under 5,000,000 quarters, but the bad harvest of 1860 necessitated a draft from other countries of 10,000,000 quarters, and the short crops of 1861, with the 1,000,000 quarters exported to the continent early in the season, have demanded about 9,000,000 quarters to be brought from abroad; this latter quantity would have been much increased but for the economy in consumption in the manufacturing districts, and the smaller stocks than usual at present held by the middle men that furnish those neighbourhoods. England began the commercial year with a less amount of old wheat on hand than ever before; the harvest of 1862, however, owing to the additional breadth of land sown with that grain, is, no doubt, over an average; the drain from other countries for the year ending August 31, 1863, will therefore probably not exceed the usual quantity, 5,000,000 quarters. The annual consumption of the British Islands is 22,500,000 quarters, with 3,000,000 quarters taken for seed, making 25,500,000 quarters; the usual production is 20,500,000 quarters, leaving 5,000,000 quarters to be received from other sources. In addition to wheat, the importations of Indian corn are generally about 1,500,000 quarters, but they reached 3,000,000 quarters last year. The population of the United Kingdom is 29,031,298.