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General Council were prompt in admitting these receipts for discount. It opened various credits, amounting, in all, to 18,000,000 francs, in favor of the trade of Hâvre, which was then suffering from the failing demand for colonial produce; at Paris, the Bank discounted 14,000,000 francs in warrants. Adding the amount of similar operations by several branches, we have a total of 60,000,000 francs.*

Another subject which occupied the attention of the Bank, was the large number of buildings then remaining unfinished at Paris; the decree of the 4th of July, passed to further the interests of those engaged in building, provided that the sub-office of the contractors of construction be authorized to loan on real and personal securities, and that the securities furnished this sub-office, should avail in favor of the National Office and the Bank of France, and be passed to them simply by endorsement.

By the same decree, the Minister of Finance was authorized to lend to the sub-office 500,000 francs, and guarantee its operations to the amount of 4,500,000 francs. The General Council immediately appropriated to this object, 5,000,000 francs.

Finally, the National Assembly, taking into consideration the situation of the traders, contractors of supplies, and other creditors of the private domain, and the old civil list, provided a mode of liquidation by a decree of October last. A few days after, the Bank agreed to discount drafts on account of the cuttings of the forests, endorsed by the liquidating parties, to the amount of 4,500,000 francs, in order to accelerate the payment of an instalment to these same creditors.

Thus, either by opening its vaults, or by discounts, ordinary and extraordinary, or by rediscount of the paper from the National offices, or by advances to industry, or by accepting warrants and securities sent to the sub-office of construction, or by loans granted to the Treasury, to the Office of Deposits, to the cities of Paris, Marseilles, etc., the Bank, to the extent of its power, made every exertion to come to the relief of the most urgent necessities of the State, and of society. All the officers of finance, witnesses of its efforts, appreciated its zeal, and two of them rendered public testimony to those efforts.

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Notwithstanding a considerable rise in the rate of interest for money, Bank kept up the usual rate in its transactions. It even reduced to 4 per cent the rate on certain transactions conluded at 6 per cent, by several department banks, before the period of union.

The debtors of the Bank were counted by thousands, and their debts enormous; the Bank pursued the most considerate course toward houses shaken by late events. It confined itself to measures of precaution; it instituted proceedings in bankruptcy against but a very few, whose bad faith was evident; it opposed no compromise, but favored them on all occasions. The report made to the new Tribunal of Commerce, 30th of December last, at its first session, fully attests this fact.

This report states the number of bankruptcies declared in the statement of 1848, at 1,219. In the preceding statement (this document adds) there were 1,139 failures. The increase is not very great, if compared to the number of suspensions of payment. The causes of this may be looked for in the moderation of creditors, and especially in the conduct of the Bank,

These advances were principally upon the following goods:-Bonnets, common shawls, brass, cotton, hair, leathers, colonial produce, drugs and dye stuffs, brandy, iron, clover and lucerne, oil, vory, French and foreign wools, flax, table linen, lace, shell-work, silk goods, acids, varnish, paper, jad, silk, metalic salts, tallow, cotton, linen, and woolen fabrics, carpets, and common wines.

which has manifested toward its debtors a liberality worthy of praise, and has been eager to facilitate amicable settlements.

FALLING OFF IN BUSINESS AND DISCOUNTS.

In this way, many evils have been avoided, many misfortunes softened; but, as we have already hinted, since July, discounts have continually diminished. This successive falling off in the monthly operations, the decrease of presentments at the end of the month, and the comparative condition of the discount books of the Bank, prove, unhappily, but too well the stagnation of mercantile affairs.

The monthly discounts of the Central Bank had exceeded 100,000,000, and 150,000,000 francs, in January and March; they fell, in November and in December, to about 20,000,000 francs.

The discounts of the last two days in November and December, 1847, rose to 25,000,000 and 30,000,000 francs; the discounts of the corresponding days in 1848, fell to 5,400,000 francs, and to 2,800,000 francs. The discounts of 31st of December last, fell to 1,371,000 francs, in paper on Paris, and 363,000 francs in paper on the Offices.

On the 16th of March, 1848, the amount on the books of the Bank, and its fifteen branches, amounted to 305,000,000 francs.

On the 25th of December, the amount on the books of the Central Bank, its sixteen branches, and of the nine department banks converted into branches, fell to 165,000,000 francs; and of this but 42,000,000 francs were on account of the Bank of France.

PRESENT CONDITION OF THE BANK.

The position of the Bank became stronger, in the last half of the year 1848, as is proved by the movement of its funds in reserve. On the 25th of May, 1848, the aggregate funds of the Central Bank, of its old offices, and new branches, fell to 115,000,000 francs; the present amount is 280,000,000 francs.

A great improvement has likewise been manifested with respect to paper overdue. The amount of notes and drafts unpaid at the Central Bank, reached the frightful sum of 57,000,000 francs; at the branches, 20,700,000 francs; total, 77,700,000 francs.

This day, 25th of January, the amount of paper overdue, according to the statement which will be published in the Moniteur, is only 14,340,000 francs; difference, 63,360,000 francs.

What will be the amount of definite loss? The committee has endeavored to calculate its amount. A conscientious estimate of the probable amount of what will be recovered, leads to the conviction that this loss will not exceed 4,000,000 francs, unless one of those unforseen events come to disturb the course of settlement. This amount had been passed to the account of profit and loss, at the time the semi-annual dividends of 1848 were declared. Their loss may therefore be considered as already cancelled.

CONCLUSION.

Gentlemen, the year which has just ended has been a hard and toilsome one. During the first months of the revolution, the General Council was, so to speak, in permanent session. Every day, and from every side, arose unexpected events, and new complications. How many obstacles and difficulties had to be overcome, in order to manufacture, in ten days, the bills

of 100 francs, and to effect an emission of 80,000,000 francs, which was still too slow for public impatience. What embarrassments arising from the gigantic increase of doubtful claims! 57,000,000 of paper becoming due, and unpaid, suddenly, and requiring a simultaneous, at all points in France, of over 60,000 legal processes, the sudden union of nine department banks, and the necessity of immediately harmonizing their operations with those of the Bank of France. These difficulties, and many others, we never could have succeeded in overcoming, if the activity, the zeal, and the devotion of all employed, had not grown with events. The enlightened, loyal, and active cooperation of the directors, inspectors, and managers of the old and new branches, deserve great praise. We pay them here the just tribute of our gratitude.

Art. II. THE PRODUCTION AND MANUFACTURE OF COTTON :

WITH REFERENCE TO ITS MANUFACTURE IN COTTON GROWING STATES.

NATIONAL Wealth, the aggregate of individual wealth, together with its creation and accumulation, is a subject on which much has been written; yet thousands of persons, otherwise well informed, appear to understand but little about it, or neglect the principles of true economy, and seem to regard it as matter of slight importance. It is not my intention to portray the science of political economy, but to give a few practical hints, applicable to a single branch of business. To point out how to accumulate individual wealth, is, to show how that of a nation is increased. In the distribution of wealth, as the production of its elements, to confer the greatest benefit, it is essential that, while the capitalist and employer are enriched, the industrial classes receive a just compensation. Without that result, no nation, however rich, can be happy as a people; for, while rich in the aggregate, as a nation, the mass of the people may be miserably poor. For example-Great Britain is immensely rich; the masses of her people are poor and indigent. If, in that empire, the enormous sums paid by means of taxes which eventually fall on labor, over and above what would be the expense of such a government as the welfare of the people require, were remitted, or properly distributed, as the reward of industry, the evils of poverty would be much mitigated, if not removed.

Labor, skill, and materials, are the elements of wealth. Without combination and application, they are valueless. Their value depends entirely on their modification into such forms as to supply the wants and wishes of mankind. This alone gives value to anything in a commercial sense. This alone gives value to money; that being, not wealth, essentially, but its accredited representative.

For instance-A. has cotton, but cannot convert it to cloth. In his hands, it has no value, except what B. imparts to it. He pays $20 for it, to A., and makes it into cloth. The cloth he sells to C. for $80. Wealth is thus created by the combination of the labor, skill, and materials, of A. and B., and paid for by the money of C., derived from some other combinations. Thus the cotton becomes valuable, because converted to a useful purpose, and A., B., and C. are each benefitted by the operation. The money which has passed between the parties, would also have been valueless to them, un

less each could have purchased with it what he wanted. Such operations alone stamp money with value, which is not really an element of wealth, but a means to facilitate the combination of its elements, and the more ready and convenient exchange of their products. Hence, where the elements of wealth, together with capital, are most equally and judiciously distributed and combined, their operation will prove the most effective, and will best subserve public and individual good.

To command a price and a profit, production must be limited by demand. The market value of anything will, at all times, bear relation to the demand for it, and prices will fluctuate, as the supply may be comparatively large or small. As a general rule, all excess of supply beyond the demand, will reduce prices in about the same ratio. In the long run, what has been expended in the production of such excess will be, generally, lost to the producers, if the oversupply be long continued. Even money is not exempt from the operations of this law; and a great and permanent increase or diminution of the precious metals, diminish or increase their exchangeable value. To make business most productive, we should, if possible, ballance the distribution and application of the elements of wealth, so that the demand and supply should be reciprocal.

Because one man accumulates wealth by the culture of cotton, or its manufacture, it does not follow that all should engage in either pursuit. The innumerable wants of mankind require the products of a vast number and variety of trades; and the great secret of wealth, prosperity, comfort, and contentment, consists in a perfectly adequate supply of those wants, on moderate, though remunerating terms, to the consumer, that afford a just compensation to all concerned in the production. To meet promptly every demand, at the proper cost to the consumer, while we secure remunerating prices and profits to the producer, a proper share of labor, skill, and materials, should be appropriated to each branch of business.

The immense wealth of Great Britain, as a nation, is the consequence of the application of her labor, skill, and materials to branches of business most productive of wealth. But the great disparity between the conditions of her employers and capitalists, and her poor laboring classes, is the result of an improper distribution of her labor and skill, as a people, and the enormous expenses of her government. These expenses are $260,000,000 per annum, the whole of which eventually falls, as a tax, on labor. Were a proper distribution of the land made, and the government administered on economical principles, the result would be different. The excess of mechanics, operatives, &c., would be required in the business of agriculture, and its concomitant branches. The factories and workshops would be relieved of their redundancy of labor, and the poor-houses of their inmates. And labor would be relieved of its intolerable burden of direct and indirect taxation, now imposed for the support of the pomp, mummery, puerilties of royalty, and a useless aristocracy. There would ensue an increased value to labor and skill, and a more ample supply of the necessaries and comforts of life, as the reward of industry: or, what amounts to the same thing, though the prices of labor might undergo little or no change, all would find employment, and the increase of agricultural products would so reduce their prices, that much more of the means of living might be obtained, than is now within the reach of the working classes. As it is, though the British capitalist so applies the elements of wealth as to create the greatest aggregate product, the American, by their more general distribution, makes them more subservient to the public good.

The government of the United States, fashioned on strictly economical principles, is controlled by the people. A large majority labor with their hands; yet they possess, in common with others, all prerogatives, and tax themselves for all necessary governmental purposes. We have no laws of entail and primogeniture; and hence we have, and can have, no landed aristocracy. Our institutions and laws encourage and facilitate such a distribution of lands, as enables almost all who choose, to till farms of their own, and to enjoy the use and profits of the products of their labor and skill, diminished only by taxes scarcely more than nominal. The sons of our agriculturalists, placed above the reach of penury and want, act, not from necessity, but from choice; and continue in the field, or enter the various trades, only as inclination may dictate. The son of the British peasant must do as he can. And, as every industrial department is overstocked, it too frequently happens, that his only choice, at last, is the parish poor-house, or starvation, which is but a single remove from it.

The policy of Great Britain, to prosecute a branch of business where the greatest facilities for it exist, should be adopted by our own countrymen. She has every facility for the manufacture of cotton, except the cotton itself. This she obtains from abroad, at an expense which would destroy the profits in a great measure, were it not for the cheapness of her labor, the consequence of its redundancy.

Our cotton States have all the facilities for manufacturing purposes, except, perhaps, skill. That can be readily obtained, at a cost quite trifling, when compared with that of the importation of cotton by the manufacturer of Great Britain. In that country, the manufacture of cotton gives employment to about 1,500,000 persons. Together with the business it creates, it makes up nearly one-half the external trade of the kingdom. More than four-fifths of its profits is so much wealth created there, and thrown away by the American people, who, having the raw material, might as well manufacture it at home, as to send it abroad. According to British statistics, of 592,965,504 lbs. of cotton imported into the kinkdom in 1840, the United States furnished four-fifths. Suppose the quantity imported to have comprised all the cotton raised in the world-Great Britain must have curtailed her business of manufacturing by four-fifths, had we manufactured all our own cotton. The wealth thus created, would then have been added to that of our own country. But there are other cotton-growing countries, and there are manufacturing countries beside Great Britian; therefore it will be be said we would not monopolize the market of the world, and that Great Britain, obtaining supplies from other countries, would still control the markets. But that would not be an easy matter. By official estimates, the quantity of cotton grown in the world, in 1834, was 900,000,000 lbs. Of this, the United States produced 460,000,000 lbs. All other countries, 440,000,000 lbs. Since that period, in the aggregate, while the culture of cotton has much increased in the United States, there has been very little increase elsewhere. We can produce cotton cheaper than any other country; and, adopting what is generally a poor policy, increasing the product, in order to make up for the decline in market value, it is estimated that the American crop of 1848 reached the amount of 1,000,000,000 lbs., or 100,000,000 lbs. more than the crops of all the world, in 1834. Increasing the consumption for the year 1848, in Great Britain, by 10 per cent over that of 1840, and the quantity will be 652,261,590 lbs., and which will be some 200,000,000 lbs. more than is produced in all the world, the United

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