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of large institutions, a certain direction this state of things; all commercial is given for a length of time to the interests were paralyzed, and the funds capital of the country, that all old in- which had been employed in those terests conform to that direction, and pursuits found employment in the renew interests are formed by it and de- newed loans of the Government, whose pendent upon it. Thus, after the close debt rose from $45,209,737 in 1812, toof the old war, the debt of the Federal $127,334,933, in 1816. The GovernGovernment was, in 1796, $83,762,172 ment had thus withdrawn $82,100,000 —and that comprised all the public from other employments, and devoted stocks in the country, as there were it to military uses. The war did not but very small State debts. The old last long enough to create any large United States Bank was in existence interests dependent upon its continuuntil 1811, and very few other stocks ance. In 1817, the old course of things: were outstanding. In all that time, was renewed; that is, Government the Federal Government paid off into began to throw off annually large the hands of private capitalists, in amounts of money in discharge of its discharge of its debt, principal and debts, to seek other employments. A interest, $142,907,991, of which new United States Bank was created, $12,812,831 was foreign debt. There and absorbed $35,000,000 for its capiwere no other stocks to absorb this tal ; but the country was in a deplorable money as it flowed from the Govern- condition until 1820, when the payment, and it constantly sought and ments on account of the public debt found legitimate employment in for- became regular, and continued until its warding the real interests of the coun- extinguishment in 1835. try in the hands of the industrious. ments of the Government on account The breaking out of the war changed of the public debt were as follows:
From 1791 to 1816
As we have stated, up to 1812 no It merely facilitates the interchange of new stocks were created. In all that that wealth after it is produced. In time the business of the country was order to observe the actual progress of constantly receiving accessions of cap- the creation of stocks, we will take the ital. After 1820 this was not the case, following table, showing the outstandbecause, as fast as the United States ing amount of three descriptions of debt was paid off, other stocks were stocks, at different periods. An enorcreated, and no new capital was applied mous amount of capital was invested directly to industrial employments. in the capitals of companies of various The movement of banks does not assist descriptions, which is not taken into in enhancing the wealth of the country. the account.
AMOUNT OF PUBLIC AND BANK STOCKS OUTSTANDING IN EACH YEAR SINCE 1820.!
The smallest amount of public stocks, credits to individuals, they are sending it will be observed, existed in 1835, back the wreck of that before borrowed. when $66,483,186 of State stocks The interest on the public debt is to comprised all. In the subsequent three be paid by the farmers, the remains of years, $108,000,000 of State stocks the bank capital in liquidation is returnwere created, of which over $40,000,- ing to its owners, and the dividends on 000 was for bank capital, and is there- bankrupt estates are going to the Atfore also embraced under the head of lantic creditors. The money drawn Bank Stocks. It then appears, that from the Atlantic States by stocks and after the final discharge of the Govern- traders is flowing back out of the pockment debt in 1835, $330,000,000 of ets of the farmers. Capital, therefore, stocks were created, forming a constant accumulates on the seaboard, and will drain upon the capital employed in all find employment in a new direction. other pursuits. A large amount, in- The money which thus accumulates in deed, came from abroad. Most of these the banks, being the realization of forbanks and State debts were created by mer loans, and left inactive by the mathe Southern and Western States, with turity of paper, without a corresponding foreign and Atlantic capital. Hence, creation of new, is the reflux of capital in the lapse of eight years, near $400,- from employment in a false direction, 000,000 set in a constant stream from as is evident from the fact, that while the Atlantic border to the interior; not this apparent abundance exists on the to be applied to the stimulation of in- seaboard, the industrious and agriculdustry, and in the hands of the mechanic tural sections of the country evince a and farmer, to enhance the real wealth comparative scarcity. The accumulaof the country, but to build, in many tion of capital in the hands of private cases, useless public works, and to be individuals, the result of successful used in banking operations to facilitate enterprises, has, during the past few trade, not productive industry. The years, been exceedingly small. We immense amount of money which could believe there are very few industrial be had for this purpose, tempted the or mercantile employments that have farmer to leave his plough, and become more than maintained the capitals emspeculator and trader. As long as the ployed in their prosecution, without money continued to flow in that direc- throwing off anything to seek permanent tion, every one was apparently pros- investment in other channels. Certain perous. The country, however, became it is, that in very many branches of rapidly impoverished. There were business, old reserved capitals have more dealers than producers. There been severely trenched upon to meet stood ready two merchants to do the the wants of regular business, under business created by the industry of one the falling prices and depreciating producer. The end was bankruptcy, values of late years. The continued the delinquency of $115,000,000 of fall of prices has uniformly, until the State stocks, the failure and liquidation present year, swept away anticipated of $80,000,000 to $90,000,000 of bank profits. The extent to which capital capital, and the passage of the Bank- has been annihilated can be judged of rupt Act to expunge $350,000,000 of by the operations of the Bankrupt Act. individual debts. A new direction is The state of Illinois, with a population now given to capital. Instead of the of 476,000 inhabitants, and one of the Western States drawing money from most fertile states of the Union, exhibits the Atlantic border for loans contracted, the following results : or subscriptions to bank capital, or
Bank Capital failed and in liquidation
The average of liabilities under the stoppage of the banks and of the state Bankrupt Act, in a State so far west, is dividends deprives the capitalists of an large; but it is official, and is probably income of $2,230,000 per annum. All less than that for the Union. The the states have not been delinquent in
their debts; but the amount of capital and that trade promises to become very which has perished will average larger important. As the prices rise, mortin other states than in Illinois.
Events gages become more easily paid, taxes such as these have greatly reduced not are cheerfully discharged, trade revives, only the general means of holding and capital accumulates. This process stocks for permanent investment, but has now commenced ; and with its have diminished the capital really ne progress, should the public debts be cessary for the prosecution of industry; confined within their present limits, and it is by no means certain that, outstanding stocks will eventually rewhen the capital now seeking invest- cover their values, and be sustained at ment at low rates of interest, and par. During the coming year, howraising the prices of the best stocks, ever, a great change is to be expected shall have become fairly active and in financial and commercial affairs as healthfully employed, anything like influenced by the movement of the the present average rates of stocks Government. When the now dominant can be maintained, until capital has party came into power, the expendirecovered itself. It is true, that the tures of Government were brought lowest points of depression have been within a narrow compass, and the apparently reached. The real wealth revenues under the supposed settled of the country is extremely abundant, policy of the Government fully adequate and an upward movement is already to meet them and discharge the small commenced. We believe that, as a debt then due. In grasping the reins general thing, all investments made in of government, the rallying cry of western produce during the past spring change” was effectually carried out. have yielded profitable returns, and Without inquiring into the expediency that business in that direction is rapidly of any existing regulations, a "change" improving. This forms the ground- was speedily effected. For economy, work of the national prosperity. With was substituted increased expenses. a rise in agricultural products, all the For the orderly Sub-Treasury, chance springs of national industry are put in and confusion. For frugal revenue, motion, and the accumulation of capital laws, and ample means, according to recommences, and rapidly progresses. the great national compromise, a proUnfortunately, the untoward legislation hibitory tariff, and its appendage, a of the last Congress has wonderfully bankrupt treasury. For high national retarded the progress of improvement, credit, the rejected supplications of a by hampering the outlet for produce. travelling loan-agent in the foreign One of the worst effects of the paper market. For a progressive liquidation mania, which yet overshadows the of debt, a rapid increase of it. Discountry, is the innumerable mortgages order followed disorder, until the party, upon their lands, which the cultivators falling to pieces, leaves an inefficient of the soil were induced to execute. executive; without permanent commerThose mortgages doubled in value cial policy; with no financial system; when prices fell. In 1837, twenty with a deficient revenue and an increasbarrels of four would pay a mortgage ing debt, of which $5,668,000 falls due of $200; in 1840, the same mortgage in January, 1844; and without the conrequired forty barrels; and thirty-two fidence of the people, or the support, barrels will now discharge it. Had scarcely, of the executive patronage, not foreign sales of produce been in- it is to encounter the stern inquisition terdicted by the tariff of the 27th of a Democratic Congress. This is a Congress, twenty-five barrels would position of affairs which makes further probably now have sufficed for the same change" inevitable; and its influence payment. As it is, the reduced tariff's upon national prosperity will be proof England have much enlarged the portionate to the speed and promptitude markets there for western produce, with which it is effected.
NEW BOOKS OF THE MONTH.
Illustrations of the Croton Aqueduct. By ments” there displayed in such imposing
F. B. Tower, of the Engineer Depart- typography had been omitted. However, ment. New York and London: Wiley we suppose it was all officially proper and
& Putnam. 1843. 410. pp. 152. necessary. A Memoir of the Construction, Cost, and Mr. Tower's volume possesses the ad.
Capacity of the Croton Aqueduct, com- vantage, which must of course recommend piled from Official Documents ; together it more to the general public patronage, with an account of the Civic Celebration that it is embellished with a large number of the 14th of October, 1842, on occasion of beautiful views of the most remarkable of the Completion of the Great Work : portions of the work, drawn by the author, preceded by u Preliminary Essay on (himself one of the engineers employed in Ancient and Modern Aqueducts. By the construction of the work), and finely CHARLES King. New York: Printed engraved by Gimbrede and Bennett. He by Charles King. 1843. 4to. pp. has in this respect, as well as in the 308.
general typography of the whole volume,
exhibited a liberal disregard of those ecoWe have here two elegant volumes, nomical restrictions of which Mr. King appearing simultaneously, on the noble hints a just complaint against the public work to which both in iheir title-pages authorities; and we hope he will not fail refer—the one, (that by Mr. Tower), as to receive that remuneration to which he the private enterprise of its author ; the has so well entitled himself. The plates other, under the auspices and at the cost are numerous and excellent, and serve to of the city whose recent noble achieve- fix on the eye that image of the views they ment it is designed to illustrate. No in- represent, which no mere verbal descripdividual could have been selected, better tion can make visible to it. The account competent for a duty of that character, given of the history and construction of than the accomplished and intelligent the work is succinct and clear, and is also gentlemen to whom, by a unanimous vote, preceded by a notice of other aqueducts, it was entrusted by the committee of the ancient and modern, similar to that of Common Council charged with the busi- Mr. King, and drawn from the same ness of the grand civic celebration of last sources, though somewhat less extensive. October, in honor of the completion of the We purpose recurring, on another occaAqueduct. We willingly score off from sion, to this interesting subject. Mr. King's account several items of his political sins, in his editorial capacity, in consideration of the very creditable manner in which, under all the pressure of Physiology. Vindicated, in a Critique the labors incident to that capacity, he
on Liebig's Animal Chemistry. By has performed the public service whose
CHARLES CALDWELL, M.D. 8vo. pp.
110. fruits are here before us. His Preliminary Essay on ancient and modern The dazzling impressions produced by aqueducts, and other hydraulic contri- the first appearance of Liebig's Animal vances, with a notice of the various Chemistry are now gradually giving way water-works that have been constructed to " sober second thoughts.” In England, in other cities of the Union miniature France, and our own country, the writings as they all are in contrast with the mag- of the German professor have recently unnificent work of New York-is an inter. dergone the most strict and severe ordeal; esting and well-compiled epitome of and among these critiques, that of Proknowledge on the subject, to which all fessor Caldwell holds a prominent place. accessible sources have been made to Professor C., by the way, is a powerful contribute. The history of the enterprise writer, his productions being always is given in minute detail-more minute, characterized by benuty of diction and indeed, than is likely to interest the profundity of thought. general reader, though doubtless appro Believing that the celebrated Profes. priate to the design of the work committed sor of Giessen, with his hosts of proto his hands. In the account of the cele. pagandists both in Europe and Amerbration, we must remark, that the litera- ica, metamorphoses man, with all his ture of the age would not have suffered attributes, corporeal and mental, into a inconsolable loss, if some of the “docu- mere chemical product, Prof. C. deems
himself called upon, as a teacher of med. tions by the infallible touchstone of time, icine, to stand forth as the champion of reflection, and experience. the philosophy of life, against this new and formidable foe. Professor Liebig, it is true, declares his belief in the superin- Clontarf ; or the Field of the Green Bantendence of vital laws; but at the same
ner : an Historical Romance, and other time, his whole theory indicates a deter
Poems. By J. AUGUSTUS SHEA. New mination, on the part of Chemistry, to
York: D. Appleton & Co., 200 Broadusurp dominion over the whole philoso
way. 1813. 12mo., pp. 156. phy of living organized matter. That Liebig's hypothesis of vital temperature
Mr. Shea's poem has already elicited is exclusively chemical, regarding it as from the press generally a favorable verthe result of combustion, and thus denying dict, to which we take pleasure in adding to vitality all the shadow of agency in its
Without claiming for production, would appear from the follow- it that sustained uniformity of merit ing extracts :-"In the animal body,” he which a longer period of elaboration says, “ the food is the fuel; and with a might have secured, it contains not a few proper supply of oxygen, we obtain the passages of fervor, force and beauty-chaheat given out during oxidation or com- racteristic of the nationality of its subject bustion.” Again :-" The animal body and author. The warmth of patriotism acts, in this respect, as a furnace, which which glows over its pages will
alone suffice we supply with fuel.”—“Chemical action to commend it to the heart of every Irish is amply sufficient to explain all the phe- reader, independently of its just claims on nomena." _“ There exists not, in the ani- his taste. We should have been the betmal body, any other known source of heat, ter pleased if its modest and worthy aubesides the 'mutual chemical action be- thor had been less chary in the number of tween the elements of the food and the minor sugitive pieces which he has added oxygen of the air.” These extracts most
to the large one giving name to the volassuredly fix upon the German Professor,
The noble lines to the Ocean, bea chemical hypothesis to the exclusion of ginning, “ Likeness of Heaven!” &c., all vital laws, as regards the production which have long been floating anonyof animal temperature; and it is to an mously over the surface of the newspaper examination of Liebig's peculiar theory, press, are here identified in their authorin this respect, that the greater portion of ship.' We only regret that our present the critique” is devoted. As it would limits forbid the quotation of them entire. be foreign to the character of our journal, The following are the concluding stanzas : to enter into a detail of this question, it will suffice to express our decided convic
"But thou art almighty
Eternal-sublimetion, that, so far as regards the production
Unweakened--unwastedof vital temperature, the multiplicity of
Twin-brother of Time ! facts and arguments adduced by Professor
Fleets, tempests, nor nations Caldwell are wholly irreconcilable with
Thy glory can bow;
As the stars first beheld thee, every chemical hypothesis. That Prof.
Still chainless art thou ! Liebig looks quite too much upon the ani
“But when thy deep surges mal organism as a mere machine, subject
No longer shall roll, to the same laws that govern inorganic
And the firmament's length matter, has been successfully demonstrat
Is drawn out like a scroll, ed by Prof. Caldwell.
Then--then shall the spirit
That sighs by thee now, We are aware that in thus coinciding
Be more mighty, more lasting, with the views of our author, many of our
More chainless than thou." 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 Travels in Egypt, Arabia Petrea, and the rank in science, yet, as regards physiolo
Holy Land. By Rev. STEPHEN OLIN, gy and pathology, often makes the most - D. D., President of the Wesleyan Unihasty and unaccountable generalizations, versity. New York: Harper & Brojumping at new and startling conclusions,
thers. 1843. long before he has determined the universality of his facts. As a chemist, how
These volumes of a distinguished minever, the Professor of Giessen has no su- ister of the Methodist Episcopal Church, perior; but high as his name must ever supply an important deficiency in the rank in Organic Chemistry, he will one records of our modern knowledge of the day regret that before giving this work to East. Mr. Stephens, by his charming the world, he did not test his generaliza. “Incidents,” threw the interest of romance