which surround them, write in a spirit not only alien, but positively hostile to our people, our institutions and national character. Having thus attempted to develope the idea of nationality, we shall, in another number, state some of the higher uses of a national literature, and point out the American writers and writings most deeply imbued with a national spirit. VERSE LIMNINGS.—No. 1. THE SENSITIVE. THERE are some natures seen to breathe and move For every use and wastage on the common air. As genius draweth from the instrument In strains that never meet with fit response, Found lonely wandering in a world too strange, The unrefined touch, the worst of all, FINANCIAL AND COMMERCIAL REVIEW. THE crisis which is now looked for in the financial circles of Europe, is that which most attracts men's attention at this moment. Those elements, which, moving in a circle of distress-improvement, prosperity, speculation, and revulsion, periodically producing financial difficulties and commercial disorders, have now reached a point where former experience would indicate that, in Europe, bank restriction and sacrifice of property would alone save a very general bankruptcy. If, however, we calmly look back to the period of former disasters, and weigh the then attending circumstances with the nature of the present crisis, we shall find such a change in the nature of circumstances, in their relation to each other, as to take from them their deleterious effects. The import of foreign grain into England in 1839, was, doubtless, the cause of the imminence with which bankruptcy approached the Bank of England in that memorable year. The import of an equal quantity of foreign grain and flour in 1846, so far from producing ruin, has eminently aided in preserving steadily the current rates for money. The financial measure of the English government in granting the charter of the new bank, was avowedly to prevent a large import of grain from having an adverse influence upon the money market. In our number for Nov., 1844, page 521, we gave the first return of the Bank under its new charter, and explained the nature of the change which had taken place in regard to the issue of notes, setting forth, to some extent, the influence which the principles of finance, then carried into effect, were likely to exercise. The change in the currency of the kingdom, from a credit circulation to a hard money basis, was accompanied by large reductions in duties on imported articles, with the design of enhancing their importation, while the specie currency was designed to prevent that increased import from having any injurious financial effects. The power of issuing notes was taken from the Bank to prevent any "paper-money advance" in prices, which should stimulate an unnatural or speculative import, or stagnate the regular export of the products of British industry, by inflating their prices. The theory was, "if the currency remained steady, governed exclusively by the flow of the precious metals, that how great soever the imports might be in volume, they would always be met by the exports of the proceeds of British industry." This theory was put in practice, and, as we shall proceed to show, has been eminently successful, down to Feb., 1847. In order to illustrate this fact the more clearly, we shall take from official reports the quantities of those articles that enter into human food, and taken for consumption in Great Britain, for ten years, ending with 1846. Of these figures we shall make two tables. The first, embracing the five years, 1837-'41, inclusive; and the second, 1842-'46 inclusive. The first table will, therefore, embrace the two great revulsions of 1837-1839; and the latter, the period of progressive prosperity under the liberal measures of the new government, down to the present time. These two tables will present most remarkable results, both as to the importation of food and the flow of bullion into the bank: IMPORTS OF FOREIGN PRODUCE INTO ENGLAND FROM 1837 TO 1841 INCLUSIVE, WITH AMOUNT OF BULLION IN BANK AT THE END OF THE YEAR, AND THE AVERAGE PRICE OF WHEAT FOR THE YEARS Cocoa, Coffee, Pepper, 6,676,354.. .6,165,000. .5,847,908.......6,463,959 lbs. ..1,418,570.. ..1,602,671.. ..1,610,338.. ..2,045.478.. ..1,930,765 ....26,392,427.....25,818,613.............. .26,832,186......28,708,033..... 28,421,468 2,741,953. 2,626,298... 2,635,130...... 2,643,908. .... 2,751,717 ..36,684,797 .22,504,344.. .23,356,246. ..22,971,406. ..22,902,398...... ..... 297,208 ..89,503,868......89,000,207......92,181,543 ..4,424,702.. ....70s. 8d.. Bullion in Bank......£8,172,000......9,250,000.......2,887,000.......4,145,000.......4,486,000 Av'ge price of wheat....55s. 10d... .64s. 7d.. The years 1836-7 were periods of great paper inflation, so much so, that in 1836, although no foreign wheat was imported, the bullion was reduced to an extent so alarming, as to compel the sacrifice of the great American houses in London, and all those credits running on American account cut off. The result was the universal bank suspension and insolvency of that year in the United States; and it will be remembered that there was then no "short harvest." The figures show, that the import of produce in England in 1837 was to a fair extent, the bullion in bank large, and wheat low. In the next year wheat advanced, and the consumption of most of the articles declined under "the screw" of the bank, which exerted itself to get back the coin that former speculation had carried away from it. In that year the harvest failed, and the year 1839 was one of revulsion. Wheat rose to over 78s. in Jan., and averaged over 70s. for the year; an enormous quantity was imported, and a great decline manifest in the quantity of all articles taken for consumption. The aggregate decline of those twelve articles was 100,000,000 lbs., or 124 per cent. The bullion of the bank sank to an insignificant sum under the large import of grain, and recovered itself very slowly through the two succeeding years, notwithstanding the great efforts of the bank. The revenue from customs and excise fell off so much, that the government imposed 5 per cent. additional on all taxed articles in 1840, which aided in a further decline in the quantities consumed in that year. The figures, carefully studied, show the effect of short harvests under the old system; we now come to the new : TABLE OF IMPORTS INTO GREAT BRITAIN OF ARTICLES OF CONSUMPTION, WITH THE BULLION IN BANK AT THE END OF EACH YEAR, AND THE AVERAGE price OF WHEAT FOR THE YEARS Avg price of wheat,...57s. 3d....................... .50s. 1d.........519. 3d.. .51s. id.. .166,563.. .....213,523. 16,374......... 6,404....... 1,321........ .3,876,465..... .4,037,921.. .4,139,994.......4,856,604.. ..4,387,527 535,191... ....1,034,508. ........1,178,038.. ...1.085,349.......1,191,896.......1,035,855 lbs......2,251,145.......2,551,191. ..2,590,528. ..2,579,497.. Tea, .22,152,707. ..22,891,517......24,535,116......25,917.100.. ..98,930,173..... .2,532,619. ..1,105,342.......3,884,486 .12,078,000......14,828,416...... .13,325,886......14,308,000 256,018........277,623 .327,842.. .269,314. 399,776 1,457........ 46.934 453,627.. .6,226,063.......6,576,854. 615,510....... 627,538.. 542.010 .7,478,879.......7,717,913 -2.735,565 3,001,945 ..24,502,321 491,287 360,675 .107,690,047 .3.377,186 ..55s. Od. The column for 1846, it will be observed, is for 11 months only, yet the totals exceed those of the previous complete year, and run far in excess of that of former complete years. One thing strikes the eye as remarkable, and it is the singular steadiness of the price of wheat, throughout the five years. In the former five years the prices fluctuated 15s., or near 40 per cent. The average of the last five years has varied scarcely 7s. and the bullion, at the close of the five years, is £4,000,000, or 40 per cent. higher than at the commencement. This remarkable anomaly, the, presents itself; in 1839 an import of 4,658,707 qrs. of grain and flour, drew from the Bank of England all its coin, and threw it into the arms of the Bank of France for relief. In 11 months of 1846, not only has 5,071,751 qrs. been imported, but an increase of 25 per cent. in the quantities of the 16 articles enumerated, and the bullion in bank has increased £1,000,000, and the rate of money is but advanced from 3 to 34a4 per cent. under the demands of railway speculators on the continent! These are facts which blow to the winds all theories based on the experience of 1839, under the old system of government. They prove, conclusively, that the conservative influence of hard money currency and free trade, is a panacea against commercial panics. If, in 1839, the same quantities of the articles named had been imported, that were entered for consumption in eleven months of 1846, irretrievable ruin would have overtaken the Bank of England, and the whole paper fabric of Britain. The question recurs, what has been the nature of the operations, by which England has been enabled to purchase these unusual quantities without disturbing her finances, while, in former years, a far less quantity caused her credit to shake to its foundation. The cause is apparent in the fact, that a steady specie currency, and reduced taxes on food and raw materials, have so promoted her manufactures, as to swell her export trade in proportion to her import, in spite of the hostile legislation of assembled Europe and America. The United States, in 1842, enacted a tariff hostile to British products. England, simultaneously, reduced the duties on United States produce. Let us see the results. England exported to the United States in 1842, when the tariff was 20 per cent., a value of £3,528,807, say $15,000,000; and the amount increased, year by year, to £7,142,839 in 1845, when the duties were 40 per cent. on British products; just double in four years. The whole exports of Great Britain were as follows: If All these countries named, enacted in 1842 high tariffs, to goods; and the result is, that they have taken more than ever! their produce, has compelled them to take goods in return. ernments have taxed those goods high, it is they that have England. keep out British England, buying their absurd govsuffered, and not The home trade of England has also been good. The rail-road expenditure has greatly promoted it; but the great and lasting reason has been, that the low duties on foreign food have allowed of a supply from without to meet precisely the deficit in the home production, as well as to feed the enhanced consumption at regular prices. Hence we find the bullion steady in bank, because the export trade has kept pace with the imports. The bullion being undisturbed, money has remained easy; foreign food coming in at low duties, has prevented that exorbitant rise, which, in former years, choked the home trade. The question now is of the future, and of the relation of the United States to Britain in the present state of her affairs. It is highly probable that with the opening spring large quantities of corn, wheat and flour, will flow into England from Europe, as well as from the United States, and that bullion in return will seek both destinations in considerable sums; but this not a matter which can, in any degree, be productive of alarm. The amount of money as furnished by the Bank of England, cannot be influenced until the issue department shall have lost £7,000,000, or $35,000,000 of specie. A glance at the last return, January 9th, will show this as follows: The amount of gold left in the week, January 7, for the United States, per Hibernia, was near £400,000. and the silver was the amount loaned to the Ban of France. Hence, it will be seen that the Bank is suffering no demand except for the United States, and it had on hand £6,715.255 of notes, which cannot be issued until that amount of specie is drawn from the issue department. Now there can be no contraction of the currency to affect prices until that has taken place.— Because, as the notes in circulation are returned upon the issue department for coin, the Banking department will put out those it holds, and most of the specie drawn from the bank has come here. It may be supposed that the quantity of grain which will reach England from all quarters in the spring may prevent any further advance in prices, which, as seen in the above table, are insufficient to check consumption. We may then proceed to estimate, by the data furnished in 1837, how far the position of the cotton crop will be affected. The year 1839 was a memorable one for cotton dealers, both because of the remarkable speculations which characterised it, and for the ruin which overtook them, through the defeat of their calculations. The U. States Bank had been a great buyer, and had aided to check the consumption of the large crop of 1838, by holding prices unnaturally high. That year closed with a stock in England, 50 per cent. higher than in the previous year, but as the crop of 1839 was estimated short, speculations were based upon that fact. Among the most important was that of Vincent Nolte, which resulted in the loss of millions to the Citizen's Bank of New-Orleans. His calculations were based upon a crop of 1,550,000 bales, and they utterly failed, although the crop did not overreach 1,360,000 bales. This defeat was owing to the financial revulsion, growing out of the short harvest, and the large import of corn paid for directly with specie. The progress of affairs in that year was as follows: This continued high price of wheat throughout the year, accompanied by the excessive drain of bullion, amounting to £500,000 per month, for more than a year, affected the consumption, and we may now see to what extent: SUPPLY AND CONSUMPTION OF COTTON IN GREAT BRITAIN. Now it is observable, that all the financial revulsions of that year only reduced the consumption 102,000 bales, and the stock, at the close of 1839, was less than at the close of 1837. This was the whole actual effect upon consumption of one of |