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jSTo. 437, August 7, 1858.] THE LEADER. ...
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GENERAL TRADE REPORT. London, Friday Eve...
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Note: This text has been automatically extracted via Optical Character Recognition (OCR) software. The text has not been manually corrected and should not be relied on to be an accurate representation of the item.
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? ' ¦ ' ¦ Trade: Progress And Prospects....
A Jew articles , such as tea , affected by the war in Canton , and wine affected , by a bad vintage , were higher in price ** in November than in April , but in general there was a considerable reduction in prices , which tended downwards before the crash . Since that event they have generally continued to fall , and except sperm oil , every one of the articles mentioned as well as wheat , is considerably lower iu price now than in last November . From such facts , then , we may be sure that in 1853 consumption had overtaken , production , and continued to it till far into the
PBICES—1857 . First week in First -week in jmncucs . Apr . November . Coffee , nat . Cey . cwt 59 s 6 d to 63 s 54 s to oSs Leather crop hides lb Is 6 d to Is 9 d Is 5 d to Is 8 d Bar iron ton 8 l 10 s to 81 . 15 s 11 15 s to 81 Sperm oil „ 99 ? to 1 GO £ 80 ? to 81 / Bice , Carolina ... cwt 23 s to 40 s 21 s to 38 s S ilk , Tsatlee lb 22 s Gd to 28 s 6 d 18 s 4 d to 23 s Cd Ruin .... gal 4 s 5 d to 4 a 9 d 3 s lOd to 4 s 4 d Sugar , B . P . yel . cwt 37 s 6 < 1 to 42 s 25 s to 338 Tallow , St . Ptsbg . „ 543 3 d 52 s Cd T imber , Memel fir . Id 65 / to 85 ? 57 ? to 85 / Wool , English ... pack 21 ? 10 s to 22 ? 19 ? to 20 ? "* 3 ft-K £ 3 ! lsed " > ls 5 d ¦ «•*
press on year 1 S 57 . By that time the great , rise in . prices had everywhere begun to tell , production had been stimulated by them , and it had become equal , or more than equal , to consumption , and to restore the equilibrium , prices fell . With rising prices in 1853 and after the close of the war in 1856 and 1 S 57 , with high prices—and except of food with rising prices—till the summer of 1857 , after ¦ ¦ which , the crash came , trade expanded and was active . As long as p rices continued to rise credit was good , and when similar circumstances return , we shall again have active trade , restored confidence , an increased demand for capit al iu actual business , and a tendency to decline iu the value of
securities . Although in the long run the quantities of commodities annually produced , such as corn , wine , oil , iron , & c , determine all questions of relative cost and profit , these are always reckoned in money . If the great rise of" price in 1853 had been the consequence exclusively of defective harvests , the rise in price would only have compensated the producers for the diminished quantity , and there would have been no increase of profit . On the contrary , the general rate of profit would have been lowered by the increased cost of an equal quantity of food . It
was , however , the consequence of increased consumption and of increased means of paying for food , arising from the licw wealth discovered on the shores of the Pacific , and the stimulus it had given to trade and manufacturing industry . Though the harvest of 1 S 53 was not good , cultivation had been extended both at home and abroad , and the deficiency would not have occasioned such a rapid and extreme rise in price liad not consumption been much extended . To produce the corn / wool , iron , oil , & c , which rose so much in price in 1853 , had cost the farmers , graziers , ironmasters , & c , no more than it had cost them to produce the same articles in 1852 . All the
rise in tlio selling price of these commodities , which preceded any addition to the cost of producing them , increased the profit of the producers . There was then in 1 S 52 and 1 S 53 a very considerable increase in the profit of farmers , wool-growers , ironmasters , & c . Every tyro in political economy knows that the selling ; price of raw materials , compared to the cost of producing them , determines the general rate of profit , a rise in which accordingly ensued . The advantages of this were shared by all who held these commodities or dealt iu them , as well as bythe producers , and by all who contributed by their funds to carry on the business of society . Accordingly , the rate of discount ; , following the rise in the
rate of profit-., rose from 2 per cent , in June , 1852 , to 5 pev cent , in October , 1853 ; and the bulk , of those who paid the increased rate of discount nevertheless made large gains . While prices were rising-, trade was equally profitable and expansive . In ISod- the war with llussiu ensued , the declared value of our exports then declined nearly 2 , 000 , 000 / ., and in 1855 an additional 1 , 500 , 0001 . Our profitable industry suffered a partial declension , and the Governments of England , franco , and -Russia coming into tlie market as borrowers , mndc largo demands on capital . The savings which might have nourished and extended profitable trade , wero devoted to waste- and destruction , and Uic redit us well as industry of tho fuliivc wore largely drawn on to supply present wants . The
requirements pt Government could not give on . the whole , like the requirements of industry , an increase of profit , however m uch a few individuals might beneSt by them , and they were followed by a fall in the rate of discount to 3 £ per cent , in June , 1855 . Trade began to revive rapidly in . the last months of that year . In the first seven months tie falling off in the declared value of the exports , as compared to IS 34 , was 7 , 400 , 000 / ., and the total declared value at the close of the year was only 1 , 500 , 000 / . less than in 1 S 5-J-. Iu the last part of 1855 , therefore , trade was more flourishing than in the last part of 1 S 51 ; and while the relaxatioa of its demands on
capital in the early part of the year had led to a fall in the rate of discount in spite of the demands of Government , its demands , combined with those of Government in the latter part of the year , raised the rate of discount in October to 6 per cent . There were no circumstances at that time similar to those of 1853 to cause a corresponding rise in the general rate of profit . More commodities , including all kinds of raw materials , were produced , but the cost of producing them , includiug increased taxation , had also increased keeping down : the rate of profit ., while the demand for capital or credit had become very great , * and the rate of discount accordingly continued very high .
As the prices of commodities have fallen considerabl y since November , IS 57 , and continue to fall to this time , -we may conclude that production lias latterly again overtaken consumption , and we may also conclude that till this relation be altered , till consumption presses on production , and prices again begin to rise , and the rate of profit to increase , trade will not exhibit the activity oi' 1852-5 'S and 1856-57 . But consumption is for ever increasing , and needs only small reductions in price to stimulate it . There is evidence in the increasing customs revenue that consumption is increasing , and as some taxation has
been wisely remitted—we wish that more had been —the producing portion of the comniunity have obtained increased power of consumption . We may now expect , then , that the demands for the production of raw materials -will ex . tend , that soon some rise of price will show itself without any immediate Increase in the cost of production , that the rate of profit will accordingly improve and trade slowly expand . That there will be as great and as rapid expansion as in 1853 and 1856 is not to be expected , but many circumstances point to a speedy , though sober ana continuous revival .
In the mam it all depends on quantities . At present , the quantities of corn , cotton , wool , & c , at our command , are comparatively large , and our population is for ever increasing . Their customers are increasing too . Both Australia and the United States , which , of late have taken comparatively little from us , are rapidly filling with industrious people who will need the produce of our industry , and will iiave the means to pay for it . Their demands arc likely to increase and become greater than ever . There is also our new colony , with its new supplies of gold , asserted to be very large , and a probability of its population soon becoming a market for our goods equal to California or Australia . India , will now , we may hope , be fully restored to peace , and from public attention haying been directed by the disturbance to her grievances , we can only anticipate an extension of her prosperity . In the six months of the present year , for which we have the trade accounts , the declared value of the exports to India has increased , compared to that ; of 1857 , as follows : — DECLARED VALUE OF EXPORTS TO INDIA IN SIX MONTHS . Abtiouks . ! 1857 . 1858 . I £ £ Beer and nle 130 , 213 474 , 438 Cottons ' 8 , 116 , 809 4 , 523 , 84 . 9 „ Yarn 540 , 676 967 , 332 Earthenware 28 , 521 43 , 975 Millinery and haberdashery 70 , 602 77 , 819 Hardware and cutlery 101 , 083 139 , 813 Saddlery 15 , 587 3 5 , 947 Muchinory , steam-engines 54 , 074 59 , 104 Other sorts 818 , 401 170 , 959 Unr iron 43 O , 85 C 579 , 925 Cnst iron 111 , 411 101 , 881 Wrought iron 288 , 778 264 , 520 Copper 34 , 13 m 9 , 018 „ sheet 228 , 325 818 , 381 Salt 31 , 119 21 , 849 Stationery 79 , 968 86 , 425 Woollens 166 , 609 202 , 076 Total 5 , 780 , 4418 , 066 , 311
This is really an extraordinary table ; the Talue of the cottons exported to India in the past six months of the present year is considerably more tlan one fourth of the total exports of cottons to all countries in the same period , 14 , 782 , 084 ^ . Almosi every article , too , is in excess in 1858 above 185 & as -we ! as above 1857 , while the total value of the exports to India in 1858 is nearly double the total in 1856 , 2 , 554 , 976 / . The exports to Ghina are also
increasing . The single article mentioned in the Board of Trade tables as sent to that country—cottons—has increased from 486 , 102 * ., the declared value in the first six months of 1857 , to 953 , 693 * . in 1858 . With this increase of trade with these old countries , while our trade with the United States and Australia is only suspended , and may be expected hereafter to extend even beyond its former projortions , what may we not expect in a future by no means remote ?
A . t the same time the exchange with both these countries is becoming favourable , and if none of the silver lately sent thither returns , at least little or no more will go , and we shall keep the gxild that comes in from all quarters instead of sending it abroad to buy silver to transmit to China and India . The gold will accumulate in the vaults of the Bank , and . an abundance of capital will facilitate the extension of trade . The rate of profit will , again increase , and again men will hurry into business .
We will conclude by observing , that in 1852 and 1853 there was an unusually large quantity of wealth to be shared by the producing and trading classes , and the bulk of those who had means tried to get a portion . Hence , at that period , fixed securities were proportionably much less sought after , and . were less valuable than at present . Capital was devoted to production and to exchange tne commodities , produced . Numberless new- trading firms started into existence , and old trading firms spread abroad all their sails . The circumstances were novel—there was in modern
times nothing like the gold discoveries and tlieir consequences , and wanting experience , it is not astonishing that many old and young houses went astray . The Leviathan was not launchedat the iirst attempt , though force and ; resistance can be calculated and demonstrated ; the Atlantic cable was not submerged at the first trial ; andm everjr yalk of life , especially in all that concerns administration , men only succeed effectually after many failures . In Germany , Norway , Sweden , & c , where the population is much less acquainted with trade , its hazards and its laws , than our people , the mistakes committed and the excess of credit taken were more glaring than here ' . Why should not trade and traders , then , have the benefit of a charitable construction of tlieir faults
and in their case , as ill those of other men , failures be sometimes , at least , attributed to defective experience , which time will remedy ? Not merely sucU exciting events as the gold discoveries call new circumstances into existence and give every trader much to learn , but every new art or uct disco-very every improvement in manufactures or in agriculture , which alters in any country the relative prices of commodities , give the trader something new to learn . Railways and telegraphs have effected greater alterations in the modes of carrying on the vast business of . exchange , or commerce , than even the gold disco , ^ ries ; and when so much that is new has to be continually learned in order to succeed , occasional and even great mistakes ought not to excite either astonishment or indignation .
Jsto. 437, August 7, 1858.] The Leader. ...
jSTo . 437 , August 7 , 1858 . ] THE LEADER . 785
General Trade Report. London, Friday Eve...
GENERAL TRADE REPORT . London , Friday Evening . With some exceptions , and more particularly in tho iron and hardware branches ,. the trade of the country continues to present very satisfactory features . For all our manufacturing products there is a brisk and a growing demand , both for homo and foreign consumption ; and the increasing transactions of tho country arc Bhown by tho larger traffic receipts for merchandise upon tho leading lines of railway , particularly those running from tho north to the various shipping ports in
Lancashire , Yorkshire , and Scotland . In a very short time this increased activity , if it continues , must tell upon the value of money ; but at present tho supply of capital is enormous , and there is a wholesomo dread on the part of manufacturers and producers of paying heavy discounts . They are thoroforo restricting their credits , and , as far as possible , introducing cash transactions . This is a satisfactory tendency , and ono tliat ; will pro-vent money rising to abovo its natural commercial val uo . In Manchester , and throughout tho districts of the cotton manufacture , there has beon a considorablo incrcasu of business during tho week , and thoro is law
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Citation
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Leader (1850-1860), Aug. 7, 1858, page 25, in the Nineteenth-Century Serials Edition (2008; 2018) ncse2.kdl.kcl.ac.uk/periodicals/l/issues/cld_07081858/page/25/
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