The Economist Part 3

It is said that a misunderstanding exists between Mehemet Pacha and his son Ibrahim, relative to the succession to the throne of Egypt; Mehemet proposing that Abbas Pacha, his grandson, should succeed after the death of Ibrahim, whilst the latter would wish his own son to succeed him.

UNITED STATES.

ARRIVAL OF THE "HIBERNIA" AT LIVERPOOL, ON WEDNESDAY.--Great interest has been excited here for some days past respecting the voyage of the _Great Western_ and the _Hibernia_, the former leaving New York on the 31st ult., and the latter, Boston on the 1st. The betting has been in favour of the _Hibernia_, and she has again beaten her great rival. On Tuesday, at midnight, her lights were seen off the port, and at one o'clock she entered the river, after another rapid pa.s.sage of nine days from Halifax, and eleven from Boston. The news by this arrival is from New York to the 31st, Boston to the 1st, and Halifax to the 3rd; sixteen days later than previously received by the New York packet ship, _Liverpool_.

The _New York American_, in its summary for the packet, says:--Our commercial and money markets continue without sensible change, both abounding in supply without any corresponding demand. The trade of the interior is prosecuted cautiously, and for money in hand.

Political affairs are exceedingly dull and uninteresting; even the Irish repeal speakers are quiet.

The progress of the pacification between Mexico and Texas, and Mexico and Yucatan, is slow and somewhat uncertain. The president of Texas, General Houston, has dismissed Commodore Moore and Captain Sothorp from the naval service for disobedience of orders. Indeed, the Texan navy may be said to have been disbanded. The people of Galveston thereupon gave Moore a public dinner, and burnt their president in effigy! The Mexican government has formally complained to the United States minister at Mexico, of the inroads of certain citizens of Illinois, Missouri, and Arkansas, into the Mexican territory. Advices from Buenos Ayres to the end of June, describe Monte Video as still holding out; and it was reported in Buenos Ayres that the British commodore would at length allow Commodore Brown, the Buenos Ayrean commander, to prosecute the siege of Monte Video by sea, in conjunction with Oribe by land.

A new const.i.tution has been agreed upon by the republic of Ecuador, establishing the Roman Catholic religion as the state religion, "to the _exclusion_ of all other worship," and the Bishop of Quito, in an address to which the people responded favourably, proposed that "ecclesiastics should be henceforth made sole judges in all questions of faith; and be invested with all the powers of the extinct tribunal of the Inquisition!" The bishop then published a "Pastoral Lecter," to "make known the glad tidings." And yet the people of Ecuador, without religious freedom, call their country a free republic!

PHILADELPHIA.--The President has returned from his country seat to Washington, and although some alterations in the cabinet are spoken of, still the results of the August elections, showing that a majority in the United States Senate will be Whig, have produced a pause in the contemplated changes. Indeed, people are beginning to complain, and not without reason, of such frequent changes in important offices. For example, within three years there have been three Secretaries of State, three of War, three of the Treasury, three of the Navy, three Attorneys-General, and three Postmasters-General. Some of them have really not had time to learn their duties, and they have been succeeded by others who knew still less of the duties and responsibilities of office.

CANADA.

Sir C. Metcalfe has returned to the seat of his government at Montreal.

The emigrants from Great Britain arrived this season at Quebec, up to the 19th ult., were 18,131; same time last year, 38,159. A few days ago, a party of Irish labourers, who had received, as they supposed, some offence from a few Canadians, at Beauharnois, attacked and nearly killed two respectable old inhabitants, who had nothing to do with the affair.

Another great fire at Toronto has burnt about twenty houses; and the Methodist meeting at Waterloo has been burnt down by some incendiary.

The crops in both the Canadas are abundant. American coa.r.s.e cottons are sold there in great quant.i.ties, at a lower price than European goods of the same cla.s.s.

ARRIVAL OF THE EMPEROR OF RUSSIA AT BERLIN.--The Emperor of Russia arrived on the 6th instant at Berlin.

THE DISTURBANCES AT BOLOGNA.--A letter from Bologna, September 2, in the _Debats_, says:--"Notwithstanding the nomination of a military commission, and the display of numerous forces, some armed bands have again appeared, as is reported, in our province. One was commanded by a priest at Castel-Bolognese (district of Ravenna). This state of things does injury to trade and business of every description. The greatest number of depositors have withdrawn their funds from the savings' banks.

A circular has been sent round to all the mayors of the province, giving a description of eight persons, for the arrest of each of whom a sum of 300 crowns (1,700f.) is offered."

COLONIES AND EMIGRATION.

EMIGRATION DURING THE LAST SEVENTEEN YEARS.--From a return furnished by the Emigration Board, it appears that the number of emigrants from England and Wales, in the seven years from 1825 to 1831, were 103,218, or an average of 14,745 yearly; in the ten years from 1832 to 1841, 429,775, or 42,977 per annum. Total number in the last seventeen years, 532,993; or an average for that period of 31,352. But the rate of emigration has greatly increased of late years, as is shown by the fact, that while the emigration of the seven years ending 1831 averaged only 14,745 per annum, that of the last ten years (ending 1841) averaged nearly 43,000 per annum.

NEW SOUTH WALES.--The monetary and commercial disasters which have afflicted this important colony are most serious, and they are thus alluded to by the colonial press:--"Our next mail to England will carry home the tidings of fresh disasters to this once flourishing colony. The fast growing embarra.s.sments of 1841, and the 600 insolvencies of 1842, have been crowned in the first third of the year 1843, by the explosion of the Bank of Australia, then by the minor explosion of the Sydney Bank, and, last of all, by the run on the Savings Bank. These three latter calamities have come in such rapid succession, that before men's minds recovered from the stunning effect of one shock, they were astounded by the sudden burst of another; and we are convinced that at the present moment there is a deeper despondency and a more harrowing antic.i.p.ation of ruin to the colony than ever existed before since the landing of Governor Philip, in 1788."--The run upon the Savings Bank at Sydney originated, it is said, from malice against Mr George Miller, the accountant, whose exertions had been very useful in exposing the mismanagement of the Bank of Australasia. Reports were circulated that the Governor had gone suddenly down to the Savings Bank and demanded a sight of all the bills under discount and mortgages, and that his Excellency declared that he would not give three straws for all the securities put together; but this statement regarding his Excellency is flatly contradicted. Many of the largest holders of land and stock in the colony are said to be so irretrievably embarra.s.sed, by reason chiefly of the high prices at which their investments were made, that their property must go to the hammer without reserve. The present time is, therefore, held out as a favourable opportunity for emigrants, with moderate capital, to make their purchases. It is broadly declared that 500_l._ would go as far now in New South Wales, in the purchase of land and live stock, as would 5,000_l._ four or five years ago.

Australia has been, in some respects, unlucky in its colonization. New South Wales has. .h.i.therto flourished from its abundant supply of convict labour, at the expense of those higher interests which const.i.tute the true strength and security of a state. Western Australia was planted with a sound of trumpets and drums, as if another _El Dorado_ were expected. But the sudden disaster and discredit into which it fell, linked the name of Swan River with a.s.sociations as obnoxious as those which were once inspired by the South Sea or Missisippi. South Australia, again, planned on principles which are universally recognised as containing the elements of sound and successful colonization, has also proved a failure. One of the newest and most enterprising of our Australian settlements, that of Port Philip has been sharing with Sydney in the recent commercial distress and calamity; and though it is already getting over its troubles, it must undergo a painful process before it can lay an unquestioned claim to its t.i.tle--Australia Felix. Land jobbing; banking facilities at one time freely afforded, and at another suddenly withdrawn; ventures beyond the means of those engaged in them; imprudent speculations, in which useful capital was either rashly risked or hopelessly sunk--these unquestionably have been amongst the causes which have brought on the commercial disasters of New South Wales. It is seldom advantageous for an emigrant, newly arrived, to become a proprietor of land in any part of Australia, unless his capital be considerable; but the eager desire to become possessed of the soil overcame all prudential considerations; land at Port Philip was eagerly bought, at prices varying from 12_s._ to 500_l._ In 1840 the influx of moneyed immigrants from England and Van Diemen's Land, to a newly-discovered and extensive territory, produced a land fund exceeding the sum of 300,000_l._, and engagements were entered into by the colonial Government, on the faith that the land fund would produce annually a large amount, but in 1841 it fell down to 81,000_l._; and though in 1842 as much as 343_l._ 10_s._ per acre was given for building ground in the town of Brisbane, district of Moreton Bay, it was impossible for this to continue; and even for valuable lands in the neighbourhood of Sydney, in the very same year, wholly inadequate prices were obtained. The colonial Government became embarra.s.sed by the expenditure exceeding the revenue; and in 1842, Sir George Gipps, in an official despatch, says, "Pecuniary distress, I regret to state, still exists to a very great, and even perhaps an increased, degree in the colony, though it at present shows itself more among the settlers (agriculturists or graziers) than the merchants of Sydney. When, however, I consider the vast extent to which persons of the former cla.s.s are paying interest, at the rate of from 10 to 15 per cent., on borrowed money, I can neither wonder at their embarra.s.sments, nor hope to see an end to them, except by the transfer of a large portion of the property in the colony from the present nominal holders of it to other hands, that is to say, into the hands of their mortgagees or creditors, who, in great part, are resident in England." This official prophecy is now in the act of fulfilment; and when the storm has spent itself, the colony may be prosperous again.

CAPE OF GOOD HOPE.--The want of Government protection which is felt by the British resident at the Cape of Good Hope is well ill.u.s.trated by the following extract from a letter addressed by the writer to his family at home:--"I am sure I shall be able to get on well in this country if the Caffres are only prevented from doing mischief, but if they go on in the present way, I shall not be able to keep a horse or an ox, both of which are indispensable to a farmer. Now I can never a.s.sure myself that when I let my horses go I shall see them again. It is a disgrace to our Government that we are not protected. As it is, all our profits may be swept away in one night by the marauders."

NEW ZEALAND.--We understand a box of specie was placed on board the _Thomas Sparkes_, in charge of the captain, for Mr Chetham. On the owner opening the box, he discovered to his great surprise that, by some unaccountable process on the voyage, the money--gold, had been turned into one of the baser metals--iron. It is stated that the steward left at Plymouth, and the first and second mates whilst the vessel was detained at the Cape, but whether they had any agency in the transmogrification of gold into iron remains to be proved.--_New Zealand Gazette_, Feb. 4, 1843.

POLITICAL.

THE ABORTIVE COMMERCIAL NEGOTIATIONS WITH SPAIN.--Senor Sanchez Silva, known for his speeches in the Cortes, as deputy for Cadiz, has published, in an address to his const.i.tuents, an account of the negotiations between the Spanish and British Governments relative to a treaty of commerce. The effect of this publication will be to undeceive the minds of Spaniards from the idea that the Regent's Government was about to sacrifice the interests of Spain, or even of Catalonia, to England. The terms proposed by the Spanish commissioner were, indeed, those rather of hard bargainers than of men eager and anxious for a commercial arrangement. Senor Silva says that England, in its first proposals, demanded that its cottons should be admitted into Spain on paying a duty of 20 per cent., England offering in return to diminish its duties on Spanish wines, brandies, and dried fruits. But England, which offered in 1838 to reduce by one-third its duty on French wines, did not make such advantageous offers to Spain; and the Spanish negotiators demanded that 20 per cent. _ad valorem_ should be the limit of the import duty of Spanish wines and brandies into England, as it was to be the limit of the duty on English cottons into Spain. This demand nearly broke off the negotiation, when Spain made new proposals; these were to admit English cottons at from 20 to 25 per cent. _ad valorem_ duty, if England would admit Spanish brandies at 50 per cent. _ad valorem_ duty, sherry wines at 40 per cent., and other wines at 30 per cent., exclusive of the excise. Moreover, that tobacco should be prohibited from coming to Gibraltar, except what was necessary for the wants of the garrison. The English Government, in a note dated last month, declared the Spanish proposals inadmissible. If the Spanish Government did not admit the other articles of English produce, the duty on Spanish wines could not be reduced. English cottons were an object of necessity for the Spanish people, and came in by contraband; whereas Spanish wines were but an article of luxury for the English. Senor Sanchez Silva concludes, that it is quite useless to renew the negotiations, the English note being couched in the terms of an _ultimatum_.

CORRESPONDENCE AND ANSWERS TO INQUIRIES.

London, September 13, 1843.

Sir,--I have read your preliminary number and prospectus, and the first number of your new periodical, the ECONOMIST, and it gives me pleasure to see the appearance of so able an advocate of free trade, the carrying out the principles of which is so necessary for the future welfare and prosperity of the country, and the relief of the distress which is more or less felt in all the different departments of industry.

I belong to the cla.s.s who have their sole dependence in the land, and have no direct interest in trade or manufactures; and feel as strong a wish for the prosperity of agriculture as the Duke of Buckingham, or any other of the farmer's friends; but I consider the interests of all cla.s.ses of the community so intimately connected, and so mutually dependent on one another, that no one can rise or prosper upon the ruins of the others. Like your Northumberland correspondent I am fully convinced of the impolicy and inefficiency of "restrictive corn laws,"

and of the benefit of "the free-trade system" for the relief of the agricultural, as well as of the manufacturing, the shipping, or any other interest in the country; and I should also be glad if I could in any way a.s.sist "in dispelling the errors respecting the corn trade that have done so much harm for the last twenty (eight) years."

The intention of the corn law of 1815 was to prevent the price of wheat from falling below 80s. per quarter; and it was the opinion of farmers who were examined on the subject, that less than 80s. or 90s. would not remunerate the grower, and that if the price fell under these rates, the wheat soils would be thrown out of cultivation. Prices, however, fell, and though they have fallen to one half, land has not been thrown out of cultivation. Various modifications have since been made in the scale of duties, but always with a view to arrest the falling prices in their downward course; but all these legislative attempts have been in vain; and so far as the farmer trusted to them, they have only misled him by holding out expectations that have not been realized.

But though the corn laws failed in keeping up the price of corn as high as their framers and supporters wished, they succeeded so far as to enhance the price of this first necessary of life, and make it perhaps 20 or 30 per cent. dearer than it otherwise would have been to all the consumers, even the poorest tradesman or labourer in the country.

If the difference which the agriculturists were enabled, by this monopoly, to obtain at the expense of the other cla.s.ses, had all been pure gain, without any drawback, they must have been in a comparatively flourishing condition; but we find this is not the case, and what is the reason? Let us hear Sir Robert Peel's answer to the question. In his speech in parliament on Mr Villiers's motion, when replying to the accusations that had been made by Mr Blackstone and other members on his own side of the house, that he had deceived the agriculturists, as the Government measures, instead of affording them the protection that was promised, had brought down prices and rendered their situation worse than before, Sir Robert says, it was not the Government measures that had brought down prices and occasioned the agricultural distress, but that this arose from the _condition of the manufacturing districts, and the general distress from bad trade and want of employment, which rendered the people unable to consume_.

If this, then, is the true cause of the agricultural distress,--if the corn, sugar, and other monopolies are so injurious to the manufacturing and commercial cla.s.ses, who are the agriculturists' best, and, indeed, their only customers, as to render them unable to consume, it is not to cla.s.s legislation that we can look for relief. In order to relieve the agricultural distress there is no other way than to relieve the distress of those on whom they depend for a market for their productions.

Were the farmer (or rather the landed proprietor) to gain all that the consumer loses by the corn monopoly,--if it were only taking from one, and giving to another--without any national loss; though this of itself would be bad enough,--it is perhaps the smallest part of the loss which the manufacturer sustains; for the same law which hinders him from going to the best and cheapest market to purchase his food, at the same time necessarily excludes him from a market for the produce of his industry; and by diminishing the demand for his labour, lowers his wages or throws him out of employment.

But one abuse leads to another. Those who are interested in the corn monopoly, or think themselves so, cannot well oppose the sugar monopoly while they require the aid of the West India planters to enable them to obtain this advantage at their country's expense; and so it is with all the other monopolists, they naturally unite together, and it requires their mutual aid and all their combined power and influence to preserve a system which they know stands upon rather an insecure foundation, and if once broken in upon would soon fall to pieces; and thus it is that we are subjected to the sugar monopoly, and though it is manifestly our interest to buy this important necessary of life (as well as every other) in any quarter of the globe where we can find it best and cheapest, we are restricted to a small portion of the earth's surface, and have to pay a third part more than we might obtain the article for without any loss to the revenue. By this narrow-minded system of buying, we deprive ourselves of valuable markets for our manufactures, as you have shown is likely to be the case with the Brazils on the expiry of the commercial treaty with that country if the matter is left in the hands of Ministers, "and no effort made to avert so great an evil." The agriculturists have to pay directly for this monopoly in common with all the other cla.s.ses in the addition to the price of the sugar they consume; but the manufacturers suffer the still greater disadvantage of having the market for the produce of their labour narrowed, and thus the agriculturist will also suffer indirectly by their customers being thereby still farther disabled to consume.

But these and all other monopolies and restrictions in trade not only lessen the demand for our manufactures abroad, but they diminish the consumption at home, to an extent greater perhaps than we are aware of; for there can be no doubt that the more the consumer has to pay for his bread, sugar, and other articles of food, the less he will have to spare for cottons, woollens, and other manufactured commodities. The demand for his labour is thus lessened both at home and abroad. The weaver of cloth may be unable to obtain a coat even of his own manufacture, however necessary it may be for his health and comfort; he must have food, in the first place, being more indispensibly necessary to his existence,--no doubt he may have to content himself with a less quant.i.ty than he could have wished, and have to subst.i.tute oatmeal and potatoes, or some other inferior food for wheaten bread and butchers meat; still, it is less in his power to curtail the consumption of agricultural produce than of manufactures, so that the manufacturing cla.s.ses suffer from the general distress which renders the people unable to consume in a greater degree than the agriculturist.

R.T.F.

TO THE EDITOR OF THE ECONOMIST.

Darlaston, September 8, 1843.

Sir,--Twelve months ago the editor of the _Morning Chronicle_ allowed a letter of mine, referring to the distress then prevailing in this town, to appear in that journal; in it I stated that for our annual wake only twenty-four cows had been killed, when but a few years previously ninety-four had been slaughtered on a similar occasion. Perhaps you will permit me to state in your columns that this year the festival, in this particular, has afforded as melancholy and unquestionable proof of distress as the last, while it bore other evidence, which though trivial in itself, is not unworthy of notice. Last year two theatrical shows visited us, displaying their "Red Barn" tragedies, and illuminated ghosts, at threepence per head, at which they did well; as also did a tremendous giantess, a monstrously fat boy, and several other "wonderful works of nature:" this year only one show of any description attended, and that, with kings and queens, and clowns, as well dressed and efficient, and ghosts, as white and awe-inspiring as ever paraded before an audience, has reaped but an indifferent harvest at the "low charge of one penny each;" while the swing boats and wood horses, patronized with such glee by the miniature men and women attending and enjoying wakes and fairs, only worked half time. The physical-force majority in the House, and their aiders and abettors, were they to see this, would perhaps laugh at the petty details, but their doing so would not in the least detract from their truth, or render questionable for a moment the deductions I make from them,--that poverty is so wide spread and bitter that the poor are compelled to make a stern sacrifice of innocent amus.e.m.e.nts; that the parent cannot exercise the holiest affections of his nature, by adding to the pleasures of his lisping little ones; that the landowners' corn law, by its paralyzing influence, is rapidly withering the great ma.s.s of the industry of the country into idle, dispiriting pauperism.

From inquiries I have made I learn that through the country generally the wakes, and fairs, and races, have presented similar features to those I have described above, so far as money goes. And in face of the distress, of which these things bear glaring witness, the Prime Minister says "that the distress has been produced by over-production." Can Sir Robert be serious when he talks of "over-production?" If he be, and will condescend to honour me with a visit during his stay at Drayton Manor, which is only a short drive of sixteen miles from here, I will show him that the opinion is fallacious. He shall dispense with his carriage for a short time, and I will walk him through all the streets of Darlaston, Wednesbury, Willenhall, Bilstow, &c., and, forsaking the thoroughfares frequented by the gay and well-to-do, he shall visit the back streets--in which carriage pa.s.sengers never deign to go--of Birmingham, Wolverhampton, and Walsall, and what he will witness in the course of the short ramble will "change the spirit of his dream." In Darlaston, as a sample of what he would see, there are hundreds of men and women whose clothes, made of the coa.r.s.est materials, are patched, and threadbare, and valueless; hundreds of houses without anything in them deserving the name of furniture; hundreds of beds without clothing, and hundreds of children whose excuses for clothes are barely sufficient, with every contrivance decent poverty can suggest, to cover the body as civilized society demands. In the towns I have enumerated, in fact, if the least reliance may be placed in newspaper reports, in every town and village in the country the same want prevails to a much greater extent than can be conceived by such as Sir Robert, "who fare sumptuously every day,"--aye, even to a much greater extent than is generally supposed by the above-want dwellers in large towns whom business may frequently bring in contact with those who toil. With the millions, then, who in this country must be next to naked, without furniture in their houses, without clothes to cover their straw beds, is it not the nonsense of nonsense to talk of "over-production." Enable these men to satisfy the wants of themselves and families, enable them to make their homes comfortable, and that alone would find employment for a goodly number, while those so employed would also be enabled to purchase the articles others are engaged in manufacturing. To produce so desirable a result, nothing is wanted but FREE TRADE repeal the corn and provision laws, and the shadow of "over production" could not exist: in three months there is not a man in the kingdom who would not have full work. And when we had supplied the physical wants of our population (a greater task than it appears at the first view), we should have introduced from every corner of the world the luxuries which refine civilization; the artisan building himself a house would then make it more comfortable and healthy, with wood floors, carpets, better furniture, &c.; and the master manufacturer erecting a house would have marble stairs and floor in his entrance hall, doors, &c. of mahogany, furniture, of rarer woods, and ornaments of marble, paintings, plate gla.s.s, &c.; and when all these things were procured, "over-production" would be still as far behind us as during their acquisition, as we would then work but three days a week instead of six, as with so much labour we should be able to procure the necessaries and luxuries of life.

And all nations would be compelled to minister to our real and created wants, for England is the only nation in the world incapable of internally supplying its inhabitants with food, and therefore, under Free Trade, has the command of the markets of the whole world. Then the English merchant going to, say America, to dispose of manufactures need not fear the merchant of France, Belgium, Germany, &c., he may meet there with similar goods; for the American asking each what he requires for the articles offered, is told by the former, "I will take your surplus corn in exchange, we want every year from six to ten millions of quarters;" and this latter answers, "We have more corn at home of our own growth than we can consume, I must have cash;" the American, preferring barter, will turn on his heel and trade with the Englishman; the unsuccessful applicant takes back his goods, or visits the market no more, and confines his future operations to the home supply of his own country, which in a short time, from compet.i.tion and want of a foreign outlet, fail to realise a remunerating profit; trade is gradually relinquished; the people turn again to the more extensive cultivation of the land, and England obtains another customer. This is no "castle building," if there be the least affinity between the results of great things and small ones. If a grocer want a coat he will have it from the tailor who will take sugar and tea in payment, in preference to patronising one who requires pounds shillings and pence, and the owners of land in all countries will take right good care that they derive some sort of revenue from their possessions. I say, I think my premises are no "castle buildings;" neither do I think I am indulging in aerial erections when I predict that, under Free Trade, England, with her capital, and energy, and enterprise, would shortly become the world's granary, profitably supplying from her acc.u.mulated stores the deficiencies resulting from bad harvests, or other casualties of her continental neighbours.

Your obedient Servant, G.W.G.