[Trade Journal]
Publication: Annual Statement of the Commerce of Cincinnati
Cincinnati, OH, United States
p. 1,5-9,48-50, col. 1-2
ANNUAL STATEMENT
OF THE
Commerce of Cincinnati.
FOR THE
COMMERCIAL YEAR, ENDING AUG. 31, 1861,
REPORTED TO THE CHAMBER OF COMMERCE
BY WILLIAM SMITH,
Superintendent of the Merchant's Exchange.
CINCINNATI:
GAZETTE COMPANY STEAM PRINTING ESTABLISHMENT, FOURTH AND VINE STS.
1861.
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ANNUAL STATEMENT
OF THE
COMMERCE OF CINCINNATI,
For the Commercial Year, ending, August 31st, 1861.
INTRODUCTORY REMARKS.
Twelve months ago, when we closed our last Annual Review of the commerce of our city, no cloud visible to the most sagacious was observable in the future of our commerce as a city or a nation. Peace and tranquility prevailed from the lakes to the gulf, and from the Atlantic to the Pacific; the hum of busy commerce and manufacture was heard throughout the length and breadth of the land; and, as regards all calculated to add to the happiness of human society and human life, no people on this earth were more completely blessed. With a commerce brought within high conservative bounds; our foreign imports brought down to the actual necessities of the nation; confidence in commercial and financial circles generally prevailing; credits not unduly expanded; abundant crops of all the great staples gathered, and no failure of any, except that of corn and wheat in some of the southern states, which, though important, are not leading crops in those states, the “harvest home” was proclaimed with satisfaction and joy throughout the land; the future contemplated hopefully and joyfully by the farmer and the manufacturer, the merchant and the banker, as pregnant with general prosperity, and the whole people of this country felt that no danger was nigh, no disaster awaited them, but that all would sit down the coming year under their own vine and fig tree, as heretofore, without being molested. This was the general feeling of our people, and obvious future aspect of the affairs of our country, on the first of September, 1860.
A few months passed on, and all these bright anticipations, and, what were then industry. Father against son, brother regarded, well grounded hopes, have perished, and been scattered as chaf before the driving tempest; bankruptcy has blighted our commerce already, and the future looks so dark that none can contemplate it without a shudder. In short, the people of this great nation are divided, and a civil war, the like of which this world has never witnessed, probably, is now devastating our fair fields and fertile valleys; the hand of the despoiler is upon our land, and the clash of arms has taken the place of the sweet sounds of commerce and peaceful against brother, and fellow citizen against fellow citizen; the inheritors of what seemed to be a common destiny, are now arrayed against each other upon the field of grim visaged war, and both parties have already repeatedly met in the dread conflict, and the bones of the fallen are even now bleaching upon the mountains and the plains of our land.
It is not our province or design to enter into any detailed statement of the causes which led to this fearful conflict, but, simply, to state the facts in order to account for the comparative ruin of our commerce and industry, which it becomes our sad duty to place upon record. Soon after the Presidential election, which took place last November, resulting in the election of Mr. Lincoln, the republican, and what was called in the Southern States, the sectional candidate, the people of South Carolina assembled in convention and on the 20th of December resolved that State out of the Union; this was followed by other cotton States, and, finally, by the 1st of June, eleven States had, in like manner, withdrawn, and a provisional government been formed, for what is called “the Confederate States of America,” and the great Rebellion was fully and fearfully established, between the United States government on the one hand, and those insurrectionary States on the other. As soon as it was perceived that South Carolina would secede, and that she would be followed by other States, which was in November, a sudden and general depression seized all departments of trade; confidence in the future, even for a month, was lost, and business became thoroughly paralyzed throughout the whole country, and there was great uneasiness experienced on during the latter part of November and all December. About the beginning of the new year, the freshness of the revolt having worn off, the people, with that elasticity of mind and that hopefulness peculiar to them, began to regard matters in a more favorable light, and on during the succeeding two months, matters did not change much; the Rebellion, as regarded the government, remained dormant, but as regarded the insurgents, active preparations were continued. On the 4th of March, the President elect was duly inaugurated, which caused great relief to the public mind, as serious fears were entertained that an attempt would be made at Washington to prevent this. During the remainder of March, matters looked more peaceful, and the impression became general, that the difficulties would be adjusted and war avoided, and there was an increase in confidence displayed, and merchants seemed more disposed to operate with regard to the future. About this time an impression prevailed that Fort Sumter, in the harbor of Charleston, S. C., and Fort Pickens, in the harbor of Pensacola, the only two forts in the seceded States which had not been taken possession of by the insurrectionists, and which were still garrisoned by United States forces, but inadequately so, would be abandoned as a matter of necessity or choice. This tended to increase the belief that peace would be restored, as regarded the business community, but to the great masses of the people affairs wore a more complicated aspect, and there was a good deal of division of opinion. On the 12th and 13th of April, Fort Sumter, having a garrison of but seventy men, was bombarded by the various batteries which had been prepared by the insurgents during the winter, and had, as a matter of course, to surrender. This produced immense sensation throughout the Northern States, and public opinion, which had been greatly divided previous to this time, changed, and but one sentiment now prevailed throughout all the free States, namely, “war.” The sudden rising of the Northern people at this time, and the wonderful unanimity which succeeded the general diversity of opinions which had prevailed among them, was very remarkable. Theoretically, civil war began by the seizure of the forts and arsenals in the Southern States, and by firing upon the steamer Star of the West, which was sent to reinforce Fort Sumter, in January, but it was not until the fall of that fort in April, that the people of the North fully realized the fact, and not until then the merchant and the manufacturer really felt that the commerce and industry of the nation were shattered, and that a bloody and, probably, a long civil war stared them in the face; and not till then did the hope of a peaceful solution of the existing difficulties fully forsake them. Merchants condensed and contracted their business to suit the worst, as far as possible, and retrenchment was the order of the day, in all departments. Rents were lowered, and property became of mere nominal value. The debts due by merchants in the seceded States were generally repudiated, and consequently those Northern merchants who did a Southern business, in whole or in part, were made hopelessly bankrupt. Commerce was suspended with the South, first by public sentiment, and, subsequently, by the government; the shipments of provisions of all kinds as well as munitions of war, to the South, or indeed to any point below here, were stopped by what seemed to be the public sentiment, in the latter part of April, producing great commotion here, as those who held large stocks of pork and bacon intended for the South, felt indignant under the feeling of large prospective losses, in case that shipments could not be made, and the trade with those States from whence they expected the chief demand, stopped, but the party which favored shipments was too weak, and the other too strong, to admit of any serious collision. The shipments were stopped, as we have already stated, and the result was very heavy losses by those who held large stocks of pork; and the season, which promised to be and would have been a most profitable one, had there been no war, has proved to be most disastrous to those engaged in it in this city. The blockade of commerce by the government, with the South, did not take place until on in May, and as there was no other interference with it previous to this, at Louisville, St. Louis, or indeed any other place west of this city, the great bulk of the stock of pork held at these places were shipped to the South, between the fall of Sumter and the time the government blockade went into effect in May, and hence it is that the only important stock of pork held in the West now is in this city.
The failure of the crops of corn and wheat in the Southern States in 1860, would no doubt have been felt seriously, and produced some embarrassment in the trade with those states, even though the civil war had not taken place, and there would, doubtless, have been some difficulty experienced in collecting debts in those states, in consequence. There were evidences of this early in the fall, but of course this would have been temporary, and but partial, and not have been felt to any great extent; but situated as our city is, upon the border, and the southern trade, entering as it does, largely into her manufacturing and produce departments, the stoppage of commerce with the South has, as was to be expected, greatly crippled our trade, and diminished our commerce, the past year. But this is not the only drawback, as the general want of confidence in the future has stopped all building in the Western cities, and paralyzed improvements of all descriptions; the falling off, therefore, in the demand for our manufactured goods has been general from all sections. The falling off in the demand for cabinet ware has dwindled down to a mere trifle, and for machinery, to an insignificant amount, so that our factories engaged in the wood and iron departments, are comparatively deserted, some of the latter are engaged in the manufacture of war materials.
We have prepared tables, showing the falling off, as well as the increase, in our general imports and exports for the year; also, the falling off in the exports to New Orleans and other down-river ports, from May 1st to the close of the year under review, also for the whole year, which will be found below.
We will first give an abstract from our statistics showing the exports to new Orleans, and other down-river ports, from May 1st, this year and last. The “other down-river ports,” include Louisville, St. Louis, and Memphis, as well as that which is exported to Tennessee by the Cumberland and Tennessee rivers; they, also include the exports to the Upper Mississippi and Missouri Rivers.
Exports from this city to New Orleans, and other down-river ports, the past and the previous year, from May 1st to Aug. 31st:
In another place, under the head of “destinations of exports,” will be found the exports for the whole year under review, for the past, and also for the previous year.
By examining the above table, it can be seen at a glance, the great falling off in the exports of the articles specified, which are those usually exported to the South.
Notwithstanding this general depressing crisis, Cincinnati has not suffered, so far, as much as some other leading cities. There has been a good business done in some departments. There was a fair business done in dry goods in the spring, and a large one in groceries, during the summer. There are some buildings being erected; and in the general retail and jobbing business, there is a moderate degree of activity; and were it not for the contemplation of the future, the present is not, on the whole, discouraging.
The depressing influence of the secession movement in the South enabled our grocers to buy the sugar and molasses of Louisiana at prices far below what they could have done otherwise, and saved them from another disastrous year’s business, and more than this, gave them a good margin for profits and a more extended trade; and the same cause depressed the price of pork in November and December far below what it would have ruled at, and thus prepared the way for a profitable season, had not the war and the consequent blockade ensued in spring. The advantages of the war, however, are few, but the disadvantages many and grievous; and this is what might be expected, for the trade and commerce of all the States were so interwoven that the fate of one must, to a greater or less extent, be the fate of all. But, whilst the immediate fnture is as dark and discouraging as can be, the more distant future we hold is not so. A people so elastic and so enterprising as those of this nation, with an energy unsurpassed and a will indomitable, cannot and will not remain long prostrated; and after this night of dismay and disaster is past, they will rise again with an energy equal to the emergency, and the rebound will be sudden and general. Were our land a poor and sterile region, and did our wealth consist of manufacture and barter, recuperation would be tedious and somewhat doubtful. But our wealth does not consist of these things, only to a limited extent; its grand origin is a great variety and abundance of natural resources. We have a soil rich beyond comparison, producing in wonderful profusion the great staples which are essential to human life and human society, and all the nations of the earth an open and ready market for them; the gold and the silver, the iron and the coal, are found in abundance in our mines; our fields furnish cotton, corn and wine, and all fruits, from the orange to the apple. Our navigable rivers traverse the interior tens of thousands of miles, with the auxilary [sic] auxiliary railways, enabling commerce to open her golden gates at the very doors of the inhabitants. With such a population, and such natural and artificial resources then, it is simply absurd to suppose that the star of our Republic is about to set, to rise no more forever.
A general decline and low range of prices of all articles, are the leading features in the statistics we shall produce in the following review; prices of many articles of produce being lower during the summer just closed than they have been for the last fifteen years. Wheat, Corn, Flour, Oats, Rye, Barley, Butter, Cheese, Eggs, Potatoes, Beef, Pork, and all the productions of the soil, have ruled at the minimum price, the last four months. Fuel is lower than ever we remember, the best coal being delivered to consumers at 9c per bushel. Speculation has ceased in all departments of commerce, and the entire business and wants of the country are narrowed down to the positive indispensibles of life; and the strictest rules of economy are observed by all classes. The importations of foreign goods have fallen off so largely that specie has been imported from Europe, the last nine months, foreign Exchange being largely in our favor, and importers of foreign goods at New York, are refusing to sell, except for cash, but in a few exceptional cases, and even to these favored few, the longest time is thirty days. This is surely a wonderful change, but must prove most disastrous to the unfortunate jobbers and retailers, whose cash generally vanishes with their credit. We have prepared the following tables, which embrace the articles of our imports and exports in which there have been any marked increase or decrease. In other years increase was the rule and decrease rather the exception, but the reverse is the rule in the present case.
IMPORTS — (DECREASE.)
IMPORTS — (INCREASE.)
EXPORTS — (INCREASE.)
EXPORTS — (DECREASE.)
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