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But all differences of this kind are avoided in case this new plan is carried out. The British Canadian Provinces at once become a nation their influence will be increased, and with power will come ambition. The present movement undoubtedly tends towards independence from Great Britain, but that will constitute no objection in the minds of English statesmen. Their only fear for many years has been, not independence, but union with this Government. They see in this Confederation, therefore, nothing to oppose. There is no danger, they think, that the rulers or leading men of such a State, when once established, with a territory many times that of Great Britain, and extending from sea to sea; with an army, and the means of constructing a navy, will ever merge their own or their country's individuality into the United States. And in this we believe they judge rightly. As separate provinces they might sometime have joined us; but as a united nation never. A sense of their power and their growing importance will soon increase their national. feeling, and with it their desire for isolation and individuality. England will lend its support to the new government until it is able to take care of itself, and then very willingly grant it independence.

The nature or details of the federation cannot, of course, as yet be known. There has been some difficulty in arranging the representation of the colonies in the Upper House, but it is now stated that it will be composed of seventy-six members, of which eleven are for Nova Scotia; ten for New Brunswick; three for Prince Edward's Island; four for Newfoundland, and twenty-four each for Upper and Lower Canada. These are to be selected by the crown from among the existing members of the Upper Houses. Representation in the Lower House is to be, according to popu lation, periodically arranged. The mode of settling other points in dispute has not as yet been made public; but we shall watch with great interest the formation of the new government and the development of this new power.

UNITED STATES DEBT.

WE have prepared the following table of the United States debt, which will be found very valuable for reference. The official report of the debt at the end of each fiscal year, and also the last report, (September 30, 1864,) with the one in the previous September, are given and classified, so that at a glance one can see the increase and the nature of the increase each year. In the last statement, (September 30, 1864,) we have included the $40,000.000 6 per cent 5-30's awarded October 4th, which were not of course in the official report, although the notice for it was out. Deducting that amount we have the official debt, September 30th, at $1,986,949,092, and the rate of increase from June 30, 1864, for each day, appears to be over $2,800,000. To appreciate, however, the extent of our daily expenditures during that period it is necessary to remember that this amount ($2,800,000) paid out each day was in addition to the receipts of the Government from taxes and duties. Mr. FESSENDEN a short time since stated that the receipts from the internal revenue law were a million a day. We think he must have been mistaken, for the best information we can get does not make them over half that sum. Taking it, however, as he gave it, and we find that, with the receipts for duties, the

each day during the three months from government receipts and expenditures were considerably over four millions

June 30th to September

30th:

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COMMERCIAL CHRONICLE AND REVIEW.

THE FALLS IN GOLD, ITS EFFECTS AND CAUSE-STAGNATION IN BUSINESS—RUMORS OF PEACEFINANCIAL TROUBLES IN ENGLAND-RATE OF INTEREST FOR FOUR YEARS-ENGLISH JOINT-STOCK COMPANIES AND THE COTTON TRADE-EFFECT ON UNITED STATES-THE NEW LOAN-UNITED STATES STOCKS-PAPER MONEY AUTHORIZED BY CONGRESS-BATES OF EXCHANGE-SPECIE MOVEMENT, ETC., ETC.

THE past month has been remarkable for one of those panics which overtake general business at times, and which are peculiarly incident to a paper currency. When the level of values has been disturbed through the introduction of a currency having no intrinsic value but what depends for its credit alone on faith in the issues, the whole range of prices, floating as it were on a sea of opinion, rise or fall with the incidents that hourly change the position of the promisor. The more the currency becomes inflated the more terrible are these fluctuations, and the more disastrous are they to the mercantile interests. When the premium on gold marked only a depreciation of 20 per cent in the paper money as compared with gold, the danger of a fall was measured by that 20 per cent. When, however, gold rose to 185 premium, and all prices bore a level as far above their nominal rates, the safety or ruin of individuals came to depend only on the whim that might seize the public mind, and instead of 20 per cent the fall might be 185. During the last spring all the elements of a rise existed, and the interests of speculators impelled an upward movement. The public sentiment ran in that direction and gold roes 100 per cent, carrying up all prices with it. This naturally gave great profit to holders of goods, and there was no general dissatisfaction. These high rates for goods, however, discouraged consumption, while the extravagance that attended great profits during the previous year was succeeded by a disposition to economize rigorously. At the same time, also, and in addition to the effect on prices of depreciated paper, was added the higher cost imposed by the tariff and the internal revenue law. For these reasons the importers and manufacturers found that the accustomed demand for their goods was wanting, and that the autumn did not bring with it the usual purchasers. This decreased demand was also further affected by reason of the long arrears of soldiers pay, (which diminished the purchases of 300,000 families,) and the call for 500,000 troops, which required economy to enable the people to make payments to the extent of $300,000,000 and over to provide substitutes. Another disturbing element was the rumors of peace. Thus four elements were at work to check business; 1st, high prices; 2d, backwardness of the Treasury in making payments; 3d, the heavy demand for bounty money; 4th, the idea that peace could raise the value of paper currency. These bounty claims have reached a serious amount, and they press very heavily upon those who are usually consumers of goods. In New York State the amount of county bonds issued for substitutes is over $100,000,000; in New Jersey it is $21,000,000. In all sections the present burden is very heavy, and the prospective one no less so. In this condition of affairs it became difficult to

sell imported goods, consequently there was little demand for gold to export, while the Treasury having notified its readiness to pay in advance the coupons on the 5 20's bonds, about $15,000,000 of gold thus came upon the market. This combination of circumstances caused a fall in the prices of gold of more than 100 per cent from its highest point. That is from 285 it fell to 184. The effect of this was to paralyze all business; goods could with difficulty be sold at all since no one would buy to resell when there was a belief that the prices would be lower. This in effect took place in cotton. There was a fall from 190 to 115 cents per lb., carrying down with it most goods of which cotton is a component part. Coffee fell 20 per cent per pound, and involved one heavy failure when the liabilities had been increased by options in sterling exchange, many other failures took place, but far less in number than might have been the case but for the fact that most of the business of the country has for a long time been conducted on a cash basis and credits are therefore little extended. The decline in prices of American produce abroad has also involved heavy losses in that trade, and checked the export of produce.

These results of a decline in prices have led to the most serious reflections upon the state of affairs which would result from an actual peace, whereby the Government expenditures would cease, and trade be opened in new channels, and on a basis of which no man can now estimate the character.

The late advices from England in relation to the money pressure there and the number of failures more or less connected with this country, are premonitions of what may result from a sudden peace. In each successive year of the war the rates of money in England has advanced, because capital has run into new employments where it cannot be readily controlled.

The first year the usual investments in cotton were prevented, and a rise in the valued cotton goods and cheap money were the consequence. The bank rates (monthly) have been for the last four years as follows:

RATE OF INTEREST OF THE BANK OF ENGLAND.

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Thus, throughout the year 1862, when much money went out of the cotton trade, the rate of interest was very cheap, ranging 2 to 3 per cent, and frequently as low as 1 per cent in the discount market. The effect of that was, as usual in such cases, to stimulate an immense number of joint-stock enterprises. The number of them organized in 1863 was 263, with a capital of £99,983,000, or $500,000,000. Many of them were for India, Australia, Africa, etc., requiring a great deal of money to be exported, and the exportation is now going on, while cotton costs more and goods sell for le33. These are the main elements of that growing pressure now so evident in England.

The rise in the rate acts not only by retarding enterprise and inducing operators to realize, but it tempts capitalists and bankers on the continent of Europe to change their investments, and send the money to England for the benefit of the higher rate, whenever that is sufficient to cover the costs of the change. In this respect the large investments that have been made in Germany in United States five-twenty bonds have hampered the action of the English bank by absorbing money that might otherwise have sought consols at present low rates, which are as low as during the panic of 1857. The main element in the disturbance which the money market exhibits has, however, been the cotton trade, as influenced by the American war. The imports of cotton into Great Britain for three years were in value as follows:

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Thus England has paid nearly $50 per cwt. in 1863, against $17 50 per cwt. in 1861, and she has drawn that dear cotton from new countries, which furnish a poor quality, and require pay in money; at the same time the sales of goods have been less in proportion than cotton. The value of cotton imported and of goods exported have been as follows:

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When the war broke out there is no doubt that there was a glut of cotton

goods all over the world. Those goods have gradually been worked off at higher prices to the profit of the holders, but the question now is to replace them with the higher priced cotton. The consumption of the goods has at the same time greatly declined by reason of the high price. It results that instead of having a balance of £13,648,808, or $65,000,000 in her favor from the cotton trade, as in 1859, she has a balance of £14,332,286, or $70,000,000 against her in 1863, notwithstanding that, by reason of good crops, the value of breadstuffs imported was £12,000,000, or $60,000,000 less in 1863 than in 1862. The progress of events for the last six months has increased the difficulties. The import of corn and cotton, and the export of cotton goods have been as follows for six months:

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Thus for the six months of the present year, the cotton has cost £15,000,000, or $75,000,000 more than the sales of cotton goods, but the imports of grain

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