annual tenancy. But this additional rental is a mere tithe of the value that landlords obtain by granting leases. Farming under the lease system is progressive, and from the large tenant outlay which the security of a lease induces, it is no unfrequent occurrence for farms, during a nineteen years' lease to be doubled in value without any outlay on the part of landlords. Indeed, what are usually termed landlord's improvements on a farm let on annual tenure, become tenant's improvements on farms let on lease. Tenant's outlay under the former system is too often limited to what one year will exhaust, while under the latter it embraces improvements which are recovered by periodical returns after a lapse of time. Taking into account the increased and increasing outlay in the shape of labour, manure, and implements which land requires to make it remunerative, I consider the question of security of tenure no longer doubtful, and that farm leases are essential to the further development of British agriculture.'

"There are few persons acquainted with English farming and English farmers, and whose prejudices or pre-conceptions permit them to see things as they are, who will not agree with Mr. Sanderson."

II.-The Panic of 1866 and British Trade.

IN connection with the subjoined article on British trade, which has been taken from the Daily News, it will be convenient to supply some figures from the returns of the Bank of England to illustrate the violent character of the "credit panic" of last summer. From 7 per cent., the rate at which the Bank minimum had stood for the three previous weeks, it was reduced to 6 per cent. on the 15th March. The fluctuations in the bullion, the reserve, and the minimum rate of discount of the Bank during the crisis, are shown by the following figures :

The Bank retained their minimum rate at 10 per cent. for no less than thirteen weeks.

The Bank of England notes in the hands of the public at the same dates, were in amount as hereunder stated :

From the Daily News of the 6th November last :

"The partial character of the commercial crisis during the present year is sufficiently shown by the returns of the Board of Trade. They afford complete evidence that, however much banking and other monetary institutions have suffered, the great body of merchants have escaped without serious injury. The fact that scarcely any failures have taken place was a conclusive proof upon this point; but, at all events, it might reasonably have been inferred that our general commerce would have been materially dininished. In one sense, perhaps, this is true, since the convulsion of last May must in some degree have retarded the progress shown in the previous six months. At the worst, however, we have remained stationary, while in many particulars we have actually made an advance. The Board of Trade returns have just been published for the first nine months of the year; and the declared value of our exports during that period has been as follows.

"In the same period of 1865, the total was 119,717,377., and in 1864, 123,404,1617. In comparing, however, the periods preceding and succeeding the crisis, it appears that in the four months ending the 30th April the amounts

"The increase, therefore, compared with the previous years, amounts to about 29 per cent. over 1865, and fully 24 per cent. over 1864. Taking the five months, from May to September, the totals stand as follows :—

:

"The augmentation is thus reduced to about 10 per cent. over 1865, and 8 per cent. over 1864. True, we have gained on the whole, but the proportion has fallen off considerably. It will be noticed that a large diminution took place in our export trade between March and April, and, in fact, the beginning of the crisis may be said to have manifested itself in the latter month. In order, therefore, to ascertain how far our general commerce has been affected by the convulsion that has recently occurred, the best comparison that can be made is between the first quarter of the year and the two succeeding quarters. In some respects it will be found that the results are less unfavourable than might have been expected. As regards cotton goods, for example, the actual quantities exported show an increase in the quantities, although the declared value is pretty nearly the same. are the figures:

Annexed

"In cotton yarns there has been a comparative falling off. This, however, is so far favourable that it shows an increased demand for the unmanufactured article Subjoined are the returns for the respective periods :—

here.

"We may pass over several intermediate but important items, since the changes in them have been of no great significance. In linens, however, there has been a positive decrease. Taking, as before, the totals for the three quarters of the year, they will be found as under :

"As regards iron there has been an augmentation, both in quantity and value, which would have possibly been much greater but from the natural reaction from the accumulated demand that arose on the conclusion of the American war. Still, the requirements for railway descriptions have been in this quarter growing larger. Our North American colonies and India figure as some of our best customers. Annexed are the actual returns :--

"Silks show a decrease, but to no material extent. Woollens are also lower; but in this case a decline might, even in the absence of a crisis, be expected, considering the immense development of this branch of trade during the cotton famine, and the reaction that has necessarily accompanied the re-opening of the southern ports of America. The totals, however, are still very large. The declared value is stated as follows:

"The returns which have lately been issued do not, as regards the exports to particular foreign countries, come down to a later period than the 31st August. They nevertheless possess a certain value. For example, we learn that in the first two months of the year the United States took from us exports to the amount of 6,687,445., against 1,967,057. in 1865, and that in the succeeding six months they also purchased from us to the extent of 13,205,990l. For the eight months they bought 19,893,4457. in 1866, and less than half that sum, only 9,483,084l., in 1865. As regards imports the particulars are not furnished, but it is sufficient to show that we received from the United States during that period enormously increased supplies of cotton and bullion. As regards cotton, the returns are as under :Eight months ending 31st August, 1864, 108,670 cwt.; 1865, 109,863 cwt.; 1866, 3,834,000 cwt. Again, taking the totals of bullion, our imports were:-Eight months ending 31st August, 1864, 5,027,677l.; 1865, 3,126,2257.; 1866, 9,005,1877.

It is, therefore, abundantly clear that whatever we have supplied to the United States has been amply paid for, even without counting the large amounts of Government securities that have been readily bought upon this side. Although we can fairly congratulate ourselves upon the manner in which general commerce has passed through the late crisis, still it would be useless to disguise that there are some grounds for misgiving. It is impossible that a convulsion such as we have lately experienced can go by without causing some individuals suffering and loss. The wonder is that there has been so little; yet there is no doubt that trade is in a more satisfactory and sound position than has happened for years past, and the proof is at once apparent in the general immunity with which a crisis almost equalling that of 1825 has been borne. Thus far, although there may be something to be guarded against, there is little to fear."

VOL. XXIX. PART İV.

2 T

Since the above account was written, the "Trade and Navigation" tables for October have been published. The results are not, on the whole, less satisfactory than those set forth in the article just quoted. Of the last returns, the Times observes that they

"Afford no indication of the absence of commercial prosperity, and fail to harmonize with the gloomy feelings that prevail in all directions. The month of October, 1865, was one of extraordinary activity in our export business, but the returns for the past month, published to-day, show an increase of nearly 9 per cent. over the totals of that date. Compared with the corresponding month of 1864, there is an increase of about 31 per cent. The improvement over last year is chiefly under the heads of cotton and woollen manufactures and miscellaneous or unenumerated' articles. In the shipments of cotton yarn there has been an increase of 28 per cent. in value and 39 per cent. in quantity, and in cotton manufactures an increase of 9 per cent. in value and 17 per cent. in quantity. Woollen goods figure for a falling off in quantity, but an increase of 10 per cent. in value. In the other stable branches there has been great general steadiness, but in several cases the slight difference that exists is on the side of a decline. Of linen goods the exports have been almost precisely equal, both as regards value and amount, to the large totals of last year. In those of iron there has been a fractional decrease both in quantity and value. Hardwares exhibit a reduction of 1 per cent., haberdashery 4 per cent., and silk manufactures 20 per cent. The total exportations for the first ten months of the year have been about 17 per cent, above those of last year, and 16 per cent. above those of the same period of 1864. Unless these operations have been persistently carried on upon unremunerative terms, a supposition for which there is not the slightest ground, there must already have been some progress towards the accumulation of new wealth in the country to repair the disasters of the panic, and when we consider the enormous amounts yearly received in the shape of foreign and colonial dividend, it will be seen that the process of accumulation must be going on at a rate which will not long remain without forcing some new channel for investment, if all the old channels are to be distrusted and abandoned, as would seem to be the present resolution of the public. The importations of foreign wheat during the month were 40 per cent. less than in October, 1865, and of flour 13 per cent. Of other descriptions of grain, with the exception of barley, they were likewise comparatively small."

III.-A Finance Company.

THE article here printed appeared in the Economist under the title of "A First Interior of a Finance Company :"

66

"Until now, finance companies of respectability have been in a certain sense unknown companies. Their directors have come down in good times and have said that they had made much money, and in bad times that they had made but little money, but in neither case was any real account given, or professed to be given, of the manner in which the money was made. On the contrary, it was said, and upon very plausible grounds, that it was contrary to the interest of the company to reveal the nature of its investments; that if at each half year the directors gave a list of the securities held by the company (and nothing less would really help the shareholders), the securities which were largely held would be depreciated; it would be said they were hanging over the market,' and so the very communicativeness of the company would have been turned against it. But now we have a real, though not an entirely complete account of the interior of one of these companies. The General Credit Company (which in consequence of a most absurd and mis