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Leader (1850-1860), 7th August 1858, Edition 1 of 2, Page 785, GENERAL TRADE REPORT.

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      Trade: Progress And Prospects The Price ...

      PRICES—1857 , First week ia First week in aktici . es . ^ pril November . Coffee , nat . Cey . cwt 59 s 6 d to 63 s 54 s to 58 s Leather crop hides lb Is 6 * 1 to Is 9 d Is 5 d to Is 8 d Bariron .. ton 8 / 10 s to 81 . 158 7115 s to SI Sperm oil „ 99 ? to 100 / 801 to 81 ? Rice , Carolina " ... CT ? t 23 s to 40 s 21 s to 38 s Silk , Tsatlee ...... lb 22 s 6 d to 28 s 6 d 18 s 4 d to 23 s 6 d Ruin ..... gal 4 s 5 d to 4 s » d 3 s lOd to 4 s 4 d Sugar , B . P . yel . cwt 37 s 64 to 42 s 25 s to 35 s Tallow , St . Ptabg . „ 54 s 3 d 52 s 6 d Timber , Memelfir . Id 651 to 85 Z 571 to 85 ? W ool , English ... pack 21 * 10 s to 221 " 19 lto 2 Ql Al * 5 £ 3 El ls 6 dto 2 sGd U 3 iU . U 11 *

      ^ No, 437, August 7,1858,] The Leader. 7...

      ^ No , 437 , August 7 , 1858 , ] THE LEADER . 785

      A Few Articles, Such As Tea, Affected By...

      A few articles , such as tea , affected by the war ia 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 sperin oil , every one of the articles mentioned as well as wheat , is considerably lower in price now than in last November . From such facts , then , we may be sure that in 1853 consumption had overtaken production , and continued to press on it till - far into the year 1857 . 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 1857 , with hiajli 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 prices continued to rise credit was good , and when similar circumstances return , we shaTL again have active trade , restored confidence , an increased demand for capital in actual business , arid a tendency to decline ia the value of

      securities-Although in the long run . the quantities of comnaodities annually produced , such as corn , wine , oil , iron , & c , determine all questions of relative cost and profit , these are alyays reckoned in money . If the great rise of price in 1853 had been the consequence exclusively of defective harvests , the rise in . jprice would only have compensated the producers for the diminished quantity , and there would have been no increase ot profit . On the contrary , the general rate of profit vould liave been lowered by the increased cost of aw equal quantity of food . It was , however , the consequence of increased

      consumption and of increased means of paying for food , arising from the new wealth discovered on the shores of the Pacific , aiid 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 had not consumption been much extended . To produce tlie com , wool , iron , oil , & c , which rose so much in price ia 1853 , had cost the farmers , graziers , ironmasters , & c ., no more than it had cost them to produce the same articles in 1 S 52 . All the

      rise in tho 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 1852 and 1853 a very considerable increase in the profit of fanners , wool-growers , ironmasters , & c . Every tyro in political economy knows that the selling price of raw materials , compared to the cost of producing them , ( letermines 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 in them , as well as by the producers , and by all who contributed by their funds to carry on the business of society . Accordingly , the rate of discount , following the vise in the rate of profit , rose from 2 per cent , in June , 1852 ,

      to 5 per cent , in October , 1853 ; and the bulk of those who paid the increased rate of discount nevertheless made large gains . Whilo prices were rising , trade was equally profitable and expansive . In 1 S 54 the war with Russia ensued , the declared value of our exports then declined nearly 2 , 000 , 000 / ., and in 1855 au additional 1 , 500 , 000 / . Our profitable industry suffered a partial declension , and the Governments of England , France , tind Russia coming into the market as borrowers , made largo demands on capital . The savings which might have nourished and extended profitable trade , wcro devoted to waste and destruction , and the rcdit us well as industry of tho future were largely drawn on to supply present want a . The

      requirements ot Government could not give on the whole like the requirements of industry , aa increase of protit , however much a few individuals might benefit 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 the falling off in the declared value , of the exports , as compared to 1854 , was 7 , 400 , 000 / ., and the total declared value at the close of the year was only 1 , 500 , 000 / . less than . in . 1851 . In the last part of 1855 , therefore , trade was more flourishing than in the last part of 1 S 54 ; and while the relaxation 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 iuthe general rate of profit . More commodities , including all kinds of raw materials , were produced , bat the cost of producing them , including 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 , 1 S 57 , and continue to fall to this time , we may conclude tliat production has 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 , arid the rate of profit to increase , trade will not exhibit the activity of 1852-53 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 , arid as some taxation has

      been wisely remitted—we wish that more had been —the producing portion of the community have obtained increased power of consumption . We may now expect , then , that the demands for the production of raw materials will extend , 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 3853 and 1856 ' is not to be expected , but many circumstances point to a speedy , though sober and continuous revival ;

      In the main it all depends on quantities . At present , the quantities of corn , cotton , - \ voolj & 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 have the means to pay for it . Their demands are 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 lias increased , compared to that of 1857 , as follows : — DECLARED VALUE OP EXPORTS TO INDIA IN SIX . MONTHS .

      Artici-Ks. 1857. 1858. Beer And Ale 130,...

      Artici-ks . 1857 . 1858 . Beer and ale 130 , 213 474 , 438 Cottons 8 , 116 , 869 4 , 523 , 849 it Yarn 640 , 576 967 , 332 Earthenware 2 ^ , 521 43 , 975 Millinoiy and haberdashery 70 , 602 77 , 819 Hardware and cutlery 101 , 088 189 , 818 Saddlery 16 , 637 85 , 947 Machinery , steam-engines ......... 54 , 074 59 , 104 Other sorts 818 , 461 170 , 959 Bar iron 480 , 856 579 , 925 Cast iron 111 , 411 101 , 881 Wrought iron 288 , 778 264 , 520 Copper 84 , 189 ' 9 , 018 „ aheet 228 , 326 318 , 381 Salt 81 , 119 21 , 849 Stationery 79 , 968 86 , 426 Woollens 1 C 6 . 60 I ) 202 , 076 Total 6 , 780 , 441 8 , 000 , 811

      This Is Really An Extraordinary Table ; ...

      This is really an extraordinary table ; the value of the cottons exported to Indiain the past six months of the present year is considerably more than one fourth of the total exports of cottons to all countries in the same period , 14 ; , 782 , O 84 r / . Almost every article , too , is m excess in 1858 above 1856 as well as above 1857 , while the total value of the exports to India in 1858 is nearly double the total in 1856 , 2 , 554 , 976 / . Tke exports to China are also increas-™ g- 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 , G 93 J . in . 1858 . With this increase of trade \ eith these old countries , while our trade with the United States and

      Australia is onlv snsrw > ndp . r ) . '» . Tii 1 mow Ko nTnaAUJ i . ~—* traha is only suspended , ' and may be expected liereafter to extend « ven beyond its former proportions , ¦ what may we not expect in a future by no means remote ? At 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 mo more will go , ani we shall keep the gold that com . es ia from all quarters instead of sending it abroad to buy silver to transmit to China and India . Tie 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 meu -will hurry into business . We will couclude by observing , that in 1852 and 1853 there was a . n 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 the commodities produced . Numberless new trading firms started into existence , and old trading firms spread abroad all their sails . The circumstances were no vel- ^ 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 launched at the iirst attempt , though force and resistance can be calculated and demonstrated j the Atlantic cable was not submerged at the first trial ; and in every walk 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 aaid its laws , than our people , the mistakes committed and the excess of credit taken were more glaring than here . Why should mot trade and traders , then , have the benefit of acliaritable construction of their faults :

      and hi their ease , as in those of other men , failures be sometimes , at least , attributed to defective experience , which time will remedy ? Not merely such exciting events as the gold discoveries call new circumstances into existence and give every trader much to learn , but every new art or new discovery , every improvement in manufactures or in agriculture , which alters in any country the relative prices of commodities , give the trader something new to learn . Railvrays and telegraphs have effected greater alterations in the modes of carrying on the vast business of exchange , or commerce , than even the gold discoveries ; and when so much that is new has io be continually learned in order to succeed , occasional and even great mistakes ought not to excite cither astonishment or indignation .

      General Trade Report.

      GENERAL TRADE REPORT .

      London, Friday Evening. , With Some Exce...

      London , Friday Evening . , With some exceptions , and more particularly in the 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 home and foreign consumption ; and th « increasing transactions of the country are shown by tlio larger traffic receipts for morcliandiso upon the leading lines of railway , particularly those running from the north to the various shipping ports in Lancashire , "Yorkshire , and Scotland . In a very short time this increased activity , if it continues , must toll upon the value of money ; but at present tho sujipJy of capital is enormous , and there is a wholesome dread on tho part of manufacturers and producers or paying heaTy discounts . They are therefore restricting their credits , and , as far as possible , introducing- cash transactions . This is a satisfactory tendency , and one that will prevent money rising to abovo its natural commercial value . In Manchester , and throughout tho distriots of the cotton ninunfucturo , thuro has Leon a considerable iucrcaso of business during tho week , and thoro is leia

  • Citation
    • Leader (1850-1860), Aug. 7, 1858, page 785, in the Nineteenth-Century Serials Edition (2008; 2018) ncse-os.kdl.kcl.ac.uk/periodicals/l/issues/ldr_07081858/page/25/