FINANCES OF THE UNITED STATES. 



329 



gains by building, amounts to 29,836 tons. On 

 the other hand, the increase of tonnage in ves- 

 sels built is about 30 per cent, over that of last 

 year. But the number of vessels built includes 

 only such as have been documented, and does 

 not embrace vessels built and sold to foreigners 

 without registration. The vessels built during 

 the year ending June 30, 1878, are: 



The total number of entries of vessels at 

 ports of the United States from foreign coun- 

 tries during the year ending June 30, 1878, was 

 30,796, of which 10,594 were of American ves- 

 sels ; the total number of clearances (foreign) 

 during the same time, 31,364, of which 10,872 

 were of American vessels. Of the total ton- 

 nage thus entered, about 25 per cent, was 

 American and 75 per cent, foreign ; of the to- 

 tal number of clearances (foreign), about 26 per 

 cent, was American and 74 per cent, foreign. 



The comparative prices of a series of articles 

 in New York, on January 1st, for eleven years 

 were as follows : 



As is invariably the fact in periods of com- 

 mercial depression and mistrust, all first-class 

 investment securities have been in unusual de- 

 mand. Hence the success which attended the 

 conversion of the bonds of the United States 

 Government into 4 and 4 per cents. The ex- 

 citement over the paper-currency and silver 

 questions had little effect to weaken the credit 

 of the American Government in Europe ; the 

 return of Government securities from Europe, 

 which came back to the amount of over $100,- 

 000,000 in 1876, did not exceed $70,000,000 

 in 1877; and before the middle of 1878 the 

 movement had almost ceased. The New York 

 money market in 1877, after the stringency 

 which commonly occurs in the first days of a 

 new year, relaxed immediately and remained 

 easy until August. Loans on call were made 

 by the beginning of February at 3 to 4 per cent., 

 and commercial paper sold at 4 to 5$ per cent. 

 The rates went down gradually until in June 

 and July they touched the minimum of 1 per 

 cent, for call loans and 3 per cent, for first- 

 class paper. The movement of the large grain 

 crop caused prices to harden in the latter part 

 of summer, without any great tension until the 

 usual changes in loans in the second half of 

 December made the market quite tight, when 

 7 per cent, and ^ per day was exacted. As 

 in the couple of years preceding, there was lit- 

 tle inclination to invest in manufacturing, or 

 railroad enterprises. The handling of the large 

 crops in August and September caused the only 

 unusual demand for money. 



There was a tendency to low prices in the 

 stock market in the spring of 1877, which was 

 magnified by the manipulations of a powerful 

 bear combination. But the news of the out- 

 break of the war in Europe which came in 

 April occasioned a sharp rebound in railroad 

 and other speculative stocks, except those of 

 the coal roads. The attitude of expectancy 

 was preserved in money centers until the set- 

 tlement of the Presidential question in March, 

 1877. The European war and the abundant 

 crops had an invigorating effect; while the 

 railroad strikes worked depressingly as long as 

 they lasted. The agitation of the silver ques- 

 tion in Congress in October caused much ap- 

 prehension toward the end of the year. 



In 1878 the money market was expected for 

 various reasons to prove unusually sensitive. 

 The year passed without revealing a critical 

 situation. The money market relaxed in the 

 second week of January, and the bank reserves 

 increased. Subsequently there were signs of a 

 monetary stringency, and the rates kept up to 4 

 to 6 per cent, on call loans and 5 or 6 per cent, 

 on business paper until May. In the summer 

 they went down to 1 to 2 per cent, on call 

 loans, and prime commercial paper was dis- 

 counted at 3 per cent, and even less, and re- 

 mained exceptionally low through the autumn, 

 except when forced up in October by stock 

 operators. The market was exceedingly easy 

 in November at 2 to 2| per cent, on Govern- 

 ment collaterals and 3J- to 4 per cent, for com- 

 mercial notes. The investment market was 



