VVVVVWV YYV V V VVWWVVWWVVWVVWVVWW
' treme measures.
":iipon thecity of New-York, the financial and
‘ the‘leadip‘g seaboard city of the world. In all
‘ ,world and holding in its meshes the richest
' 'rprizes ‘of international commerce. The last
' quarter of a. century has been characterizedby
2
N E W—YOB K’S 8 [WE EMACY.
.-_.———
‘COMT. TERCIAL AN’D :FINJLNCIAL POWER
OF THE ME’I‘RCPOLIS. . " ' '
msrodtcahOurnr-im or run snow-r11 AND DEg
immerses-’1‘ on THE LAST CENTURY AND
run FEATURES OF FOREIGN AND DO—
mns'ric "TRADE-MANUFACTURING nu
economists AND THE vas-r CAP—
ITAL INVOLVED—HARBOR AND
1mm“. FACILITIES—sci.—
m BANKING INSTI-
‘ T‘s—ETIOX’S.
Future generations, in their historical re-
searches, will refer to the year 1898 as a. most
memorable one for this country. From the
point of View of to-day, it has been in many
respects most remarkable. Never before has
the importance of the United States, as a com—
mercial factor in the world’s progress, been
more boldly outlined. The war with Spain in-:
terrupted for the first time a period of peace ex—
tending over thirty-three years. The overwhelm-
ing victory of the American forces on land and
sea, but more particularly the ‘magnificent
fighting power of the Navy, opened the eyes of
other rations, and at the same time called out
a wholesome respect for the. Stars and Stripes,
which amounts almost to a guarantee of future
success in international trade relations.
Prosperity is here. The baneful influences of
the panic of 1893 have disappeared. Commerce,
domestic and foreign, basks in the effulgent
rays of renewed business activity and restored
confidence. Every sign points to an era of un-
pai‘allelcd‘and uninterrupted progress. Peace
has been accomplished. Crops" are unusually
large and prices satisfactory. The banks all
over the country have more money than they
know what to do with. The National finances
are in excellent condition. A big gold reserve
appears upon the books of the Treasury, and
the receipts from internal revenue, customs and
war taxes are amply sufficient to meet ex-
penses without the issue of bonds or other ex—
The combined volume of ex-
ports and imports is unprecedented, and the
balance of trade favors the United States to
the tune of about $70,000,000. Unless all prom-
ises fail, the opening years of the coming cen-
tury will signalize the most wonderful cycle in
"the history of time.
ELEMENTS OF GREATNESS.
At such a moment the eyes of the entire Na—
tion, and the civilized world as well, are fixed
commercial centre of the New Worid. This great
metropolis, with its immeasurable wealth, its
vast population, its incomparable harbor and
shipping facilities, its great railroad systems
ilnd terminals, and with its prestige as the
chief city of the leading Commonwealth of the.
Nation, looms up the most conspicuous factor
in the advancement of foreign and domestic
trade.
In the supplement which this paper places
before its readers to-day the effort has been
made to set forth the present magnificent com—-
mercial supremacy and financial power of the
city, with an outline of the growth and def
velopment which have led up to itfi'l‘he follow-
ing pages will be found to contain valuable fin-
formation and statistics, gathered from an—
thoritative sources, concerning the leading in»
dustries of the great city and the four parts,
complete, should prove invaluable for future ref;
erence and should be carefully preserved for.
such purpose.
According to figures which are below rather:
than above the actual valuation, capital to the
amount of about $425,000,000 is invested in
manufatrturing in what was formerly New-York
City alone. An army of 350,000 finds daily em—
ployment. These people draw in wages the
enormous sum of $230,000,000 every year, and
the value of the manufactured product they aid.
in turning out is computed at $775,000,000. As
much more capital is invested in the various
cities and towns lying within a radius of twenty
mileslof the City Hall. Take Brooklyn, which is
now in New—York, and whose manufacturing in—
dustries are growing to such an extent that she
is likely to add another and more practical title
to the one she already wears with so much
grace, that of the City of Churches. I-I-er in—
vested capital in manufacturing enterprises is
fixed at about $102,000,000. In the factories—of
manifold industries 109,000 persons find employ-
ment, drawing in wages $65,000,000 a year. The1
valueofthe manufactured prod-net is placed at
about $200,000,000. Here alone is an army of
more. than 450,000 bread-Winners, and no ac-
count_is taken of the thousands of people 8-11--
gaged irl other pursuits in wholesale and retail'
stores.
' _' SHIPPIN } SUPREMACY.
The 'uninterrupted progress of the port of
New-York, the commercial centre of the New
World, reached its height in the present year
when; byathe records of the tonnage which en—
tered .andicleared from this harbor, she became
directionsafrom the Statue of Liberty a‘eompli-I
cate‘d Swell, of steamship lines spreads ougreach~,
ing3t'6 the uttermost corners of the.civi‘lized
.1,”
min?! for the Atlantic coast. 80 great has been'
the demand for piers and docks to accommo-
DOCk Commissioners have been unablerto-meet
1t. and many, steamship companies have gone,
to other ports because there was no room for
them here. The greater city has about-three
' hundred and fifty-three miles of water-front, yet
is obliged to turn applicants away for lack of
(lock facilities."
Although New-York holds in a. firm grasp the,
commercial supremacy of the country, a study
of the records of exports for the last few years
has revealed a tendency to fall slightly behind.
in respect to the export trade. The tremendous
gains in the exports of the United States have
been the cause of widespread satisfaction. The
gains of the last two years in particular have
been most noteworthy. This port has shown a
big increase in this direction, :but the assertion
is made that New-York has not maintained the
same ratio of intro so as formerly with the in-
crease of the whole country. Those interested
in the welfare of the city gave the subject care-
ful study and attention, with the result that
upon the advice of Governor Black a law was
passed authorizing the appointment of a special
commission to inquire into the commerce of the
city of New-York and suggest legislation there-
on. In his message to the'Legislature at the
opening of the session in 1808 Governor Black
said: .
“The commerce of New—York is not increasing
as rapidly as that of other ports. Perhaps this
is inevitable, for the first of yesterday may be
the second to—day and out.of the race tc-mor—
row. But it is not likely that New-York is suf—
fering from conditions which she cannot over-
come. The conditions which hold her back seem
to be neither natural nor general. It is said
that the commerce tributary to New-YO'rk'ICity
has been checked and discouraged by a too nar-
row pOlicy prevailing there with reference to
terminal facilities. If this is true that policy
should be corrected, no matter whether it is
pursued by the city or individuals. The facili-
ties of New-York belong not to the city or :even
to the State, but to the country. If by. location-
she is the best point of shipment to foreign mar—
kets for Western farmers, then her advantages
should be open no 'more to a Broadway mer—
chant than to a Kansas farmer. And the rights
of the latter should .not be abridged by restric-
tions or charges which would drive him to Gal-
veston or New—Orleans. Every citizen in this
country has a right to get to the sea with his
product, no matter whether he lives on the coast;
or not, and he should not be subjected when
there to unreasonable demands from those who
have accommodations which he is obliged to,
employ. Some communities are so placed that
their course not only interests but largely af—s
fects others. To the extent in which this-is.
true, just to that extent has the 'public the right
to advise and direct those so situated. New-
York City is in this class. '
“Her affairs are not local but National, and
this View receives constant recognition at-tzhei
hands of the General Government.
money from the general Treasury have beeni
expended in New-York with National sanction,
, and millions more should be expended now in?
the single project of deepening the approaches
to her harbor.
not be urged when her benefits are considered:
.and denied when others claim theirs. This Stat'e‘
should open such facilities in New-York Harbor,
as will draw and accommodate every pound of
commerce which would naturally come there.
The desire on the part of individuals or of the.
city for rapid accumulations should not pre-
vent this result. The broadest and most liberal}
policy is the wisest. An outlay for such .a pur-
pose would be repaid tenfold in pecuniary re-2
turns and in the growth and prestige of the?
State. Neglect or carelessness in dealing with
this subject would put New-York at a disad-.
vantage with other ports in the United States;
and-might put the whole country at a disadvan—
. tage with Canada. The Canadians are just now?
discussing this subject. and are relying upon:
advantages afforded by the St~ Lawrence River?
to attract over that stream the products of:
Wisconsin, Minnesota, Dakota and other West-5
ern States, intended for foreign markets. This
competition should be feared and met.”
TIIE GAIN NOT KEPT UP.
In 1896 New-York handled 51 per cent of the
total foreign trade of the United States. In
June, 1898, the increase for the country in for-
eign trade Was $32,000,000, but New-York
showed ardecline of $25,000,000. The percentage
of loss represented about 5 per cent of the gross?
trade. While this appears small, it represents a
value equal to the entire foreign trade of Phila-
delphia and one-half the foreign trade of Boston.
This decline ,givcs New~York to—day 16.89 per
cent of the total foreign trade, as against 51 per
cent in 1896. It is for these reasons that active
steps have been taken to enable New-York not
only to maintain her present commerce, but also
to increase it satisfactorily.
The Custom House was established in this city
in 1789, and the record from that day to this is‘
the best index of the growth of commerce in
this port. ’ ’
Collections for year ending June 30. 1790 ..... $300,038 85
Collections for year ending June 730, 1851 ..... 31,670,195 29
Collections for year ending June 30. 1861 ..... 28,400,773 62
Collections for year ending June 30, 1871 ..... 242,761,446 37
Collections for yen: ending; June 30, 1881. . . ; .139,579,562 83
Collections for year ending June 30, 1891 ..... 147,538,045 60
Collections for year ending June 30, 1898 ..... 103,703,355 40
The closing days of 1898 find the great trunk
line railroads terminating‘in Newff‘onkxln most
prosperous circumstances, IBuSi'nt-ss throughout "
has been of large proportions. The splendid
cropsxin the, West have stimulated the grain
cargying trafficing-an unexampled manner, and
{earnings haye'{’-boen on the gain. The demand
for American manufactures from foreign coun"
tries has given the railroads all they could do.
The great bulk of this trade :is handled in New-g
York, and the roads running to this point havei
laid down/«in with eir . :NewJYorkv . freight "stations",
the development of great I-‘oo‘ean -:.f-reight‘i steanhfshundnedswi thousands-of wnsv elf-packagee‘andi
chip systems. Companies backed—by ample cap—f
ital-have “pushed these énterprises, and new:
bulk;~;goods, :.'WhiC-h _have-- been transiemodltp‘y‘
steamship-and .fiomandeci to; the-markets chine; -
world. ‘ ‘
York has been, in amajority of cases, the ter-
In the realm of finance New-York"is the rock
date the increasing seagoing traffic that the $3
- city can be considered only with feelings of awe
: private dwellings on the upper West Side of the
5 wide reputation. Although for a long time the
"in the direction of improving these importantg
Millions of ;
But this National aspect can—'
. representing a total aggregate "capital of about
. port than ever before. The capital of its banks.
_ reached the sum of $15,000,000.
foundation upon' which résts the commercial
structure of the United States. In 1800 the city
boasted three banks, with a. combined capital or
, . . To—day the capital of the associated
banks alone is $58,272,700, with accumulated,
profits of,‘875,91.1,300, and deposits Of about
. , . ' The financial organization of the
perfect in its workings; It has been the source:
of the money powecpf the city. There are
many separate elements each following in its
own channel, yet all co-operating and forming
part of a. mighty financial machine.
The Sub—Treasury and the New-York Clear—
ing House, with their intimate relations with
all the banks, are leading factors in the situ-
ation. Through them and the banks is regu-
lated the flow of money to all parts of the
United States, and into all parts of the globe.
In international relations the big foreign bank—:
ing houses form the connecting link of inesti-
mable importance between the Old World and
the New World. On the floors of the exchanges
of- New—York the traffic in bonds and shares of
the. country’s huge corporations is conducted.
This business, bringing into its whirl the army
of brokers and private bankers, regulates and
facilitates the ebb and flow of the Nation’s capl-
tal. All in all, the financial might of the greater
and wonder. The National and State banks
have an ever—widening influence through con-
nections in every State in the Union and the
principal foreign cities.
THE WHOLE COUNTRY REPRESENTED.
Directly and indirectly the -ma.nufacturing in-
terests of the metropolis represent so enormous
a value that it is not possible to estimate it.
It has been said that $1,000,000.000 _was in-
vested in such enterprises, employing more than
half a million people. The huge industrial
corporations make this city a. distributing point,
while the leading concerns in every State in the
Union have a New-York'brai‘ich for selling. The
fact that a firm has its place in this city helps
wonderfully in building up trade. There is a
magic charm in the name of New-York, which
wields a powerful influence with the merchants
of interior towns and cities.
The building operations of the last few years
have been extensive, and the sky line of the
lower part of the city has been completely
changed. Millions have been invested in superb
office buildings. The ever—increasing population
of the city has been the cause for the construc—
tion of thousands of apartment-houses, while
city have been multiplying at a rapid rate. The
public buildings of the city offer untold attrac—j
tions to the thousands who visit the city. The
Brooklyn Bridge, connecting the‘ two leading
boroughs of the new metropolis, has a world-’
only bridge across either the East or the North-
River, it is soon to. be followed by other structa
ures of a similar nature, to meet the require-4.
merits of passenger and freight traffic between
New—York and Brooklyn and New-York and -f
Jersey 'City. Hundreds of parks'hig and little, _
afford spots for pleasure and recreation, and the -
tendency of the city government is constantly,
features of metropolitan life. The magnificent?
Speedway, which covers over two miles along
the river front beyond One—hundred—and—ififty-g
fifth-st, was constructed at a cost of several’
millions, and is an example of the effort to give,
the people every opportunity to enjoy life within -'
the city’s boundaries. Those who once dwell in;
this great city become fascinated with the life,§
and only the most urgent force of circumstances =
ever drags them away to live anywhere else.
The best talent .of the country finds its way:
here, for here are offered opportunities afforded.
in no other city. '
From an historical point of View, it was not:
until after the War of the Revolution that Nev. ~
York began to shake off her provincialism, and
gained recognition as a centre of importance.
Prior to that period Philadelphia had» taken the
lead in purely financial matters, the first bank.
in that city having been established in 1781.‘
Nine years later, in 1790, the Bank of the United
States, which was chartered by Congress, had
its principal office in the Quaker City.‘ New-v
York was not so far behind Philadelphia, for in :
1784 the first bank was started on the Island
of Manhattan, and eight years later, in 1792,.
the forerunner of the New-York Stock Exchange
sprang into life. 'By 1800 the banking facilities
of this city had increased to two State banks,
besides a branch of the United States Bank;
$3,000,000. By this time commerce at this port
had begun to assume important proportions,
and the collections of the Custom House in the:
first year of the present century amounted to:
$2,373.000, which represented an excess of more,
than $1,000,000 over the port receipts of Phila—'
delphia for the same time. .
'The period extending over the next fifteen,
years included the disturbing features of the;
War of 1812, which did much to unsettle the,
foreign commerce of the country. The bank-'
ers and business men of New—York gave in-
valuable assistance to the Government in its;
hour of need, and when, in 1815, the struggle:
was over, New-York was more firmly litren'c‘hed
for carrying on the {growing commerce of her.
had increased in the .mean time from $3,000,000.
to $10,000,000, and the customs receipts had:
In 1817 the
speculation incident to the close of the war
made necessary the regular incorporation of the.
New-York Stock Exchange. With increased en— :
ergies and enlarged facilities, New-York was:
indeed, ready to enter the race for commierc‘iala
supremacy. By 1825 this port had passed both
Philadelphia and Boston, and from that day to
this she has kept in front. . ,
INTERNAL TRADE. , z.
The merchants of this city had already begun
reaching out for the inland business of the
country. Direct connection with the lVest was
opened‘up'by way‘of the Great Lakes and the;
BudSon ’River, and'tiie products of that section:
poured into the warehouses of Manhattan. In
of affairs the control of foreign ,exchange and
the settlement '0! funeign accounts, both ways,
great metropolis is acomp‘lex one, yet almost .
. steady stream of yellow metal.
less time than couldbe lealized, this port be-; 1,333
came the centre and main point of distribution- '
for the entire country. In the natural course 18
:drifted‘, into,.,thc.....hands_ of ..3New-.;York _b-usin_es_s.. ,
images .:When‘-".m-:1837 ~tbe ,crash'i .wme, 7which I. .
resulted fromf'a‘ period "ofj-I'e'c‘kless-fjspectrlation, ‘ 3
”illiélii'c‘élil’ ’in’éu’ifitifii‘is use gall-ea satin stability . 1’1
~
flic storm, and when it had passed by the cl
awoke to flnditsell.’ in 'a. position to enjoy pr:
parity and commercial success as it never had
before. The city was greatly benefited by the
Erase Banking act, "which established the prin-
cgnle that banking was a business in which at!
Citizens might under proper regulations freely
engage. This abolished the abuses. connected
With banks established by special charter en-
actment, and resulted .in'an untold advantage to
the local institutions. It might be said-that the
present system of strong and powerful financial
concerns in Manhattan dates from. this period.
The fall of, the banks of the United States in
Philadelphia caused a. large portion of the
financial business of that city to be transferred
to New-Yak, where it has ever since remained.
The local banks were then placed under super-
visron and surrounded with every" safeguard.
Bank notes were based upon Government and
State bonds and other leading securities, and
the currency for almost the first time heme
sound.
From the panic of 1837 to the time of the
breaking out of the Civil War, New—York made
wonderful and rapid strides. The growth and
development of steamships and steam railroads .
were potent factors in building up commerce. ,
The discovery of gold in California and the de-
velopment. of mining on the Pacific Coast
turned into the coffers of New-Yerk banks a
_ In the mean
time the United States Sub-Treasury lad been
established in the city in 1846, while in 1853
the United States Assay Office and the N ew-York
Clearing HouSe Association were organized. In
18.60 the number of banks had increased .to
fifty, having an aggregate capital of about
$70,000,000, and deposits of more than $80,000.-
000, with a circulation of from $7,500,000 t
$8,000,000. The progress of the metropolis
owing to the aid of navigation and steam power
during these years had been irresistible. Trams-
portation facilities had placed New-York in
communication with the North, South and West,
and commercial relations with these sections
grew apace. Large and important enterprises
had been undertaken, which had been floated
with capital secured in the metropolis, the
money centre. Speculation inlbonds and snares"
was carried on in a. constantly increasing vol-
ume, and the business of the Stock Exchange
flourished.
HELPING THE GOVERNMENT.
The War of the Rebellion: marked another
epoch in the commercial chistory of the
metropolis. The Government turned to the as!
sociated banks of this city for support. A Loan
Committee of the Clearing House was appointed,
and time and again funds were advanced to the
Government inexchange for Treasury notes and
bonds. This being the principal port of entry
where duties on imports were payable to the
Government in specie, the gold value washe-
termi-ned here. The eyes of the bankers otgthe
world were attracted to the gold room, where
the transactions in specie were conducted.
New—York became the arbiter of the gold value
of the National currency. New-York’s financial
supremacy was made complete by the National
Banking act of 1865, which made this city the
depository of the banking reserves 0f the entire
country. Another feature was added in the
regulation requiring the National banks to set
aside 25 per cent of reserve against deposits.
In this way the great bulk of the surplus funds
of the financial institutions of the United States
were accumulated in this city for interest-earn-
ing purposes, and a, large amount of ready cash
was collected at this central point for distribu-
tion throughout the country, according 'to' the
requirements of trade.
The period extending from the close ofthe
Civil War to the present time is too well knOwn
to require more than a mere outline. New-
York’s pOsition as the greatest commercial cen-
tre of the New World had become unassailable.
The influence and power of her financial institu-
tions became more far—reaching than ever. For-
eign capital was attracted by the inducements
of the undeniable prosperity enjoyed in the open-
ing up of the resources of the United States,
and several of the leading European, banking
houses open-ed branch ofiices in this city.
The Rothschilds and Barings were among
those who '%d in this movement. The vast
sums of foreign capital which have been in-
vested through these firms in-American securi-
ties has acted as a mighty stimulus upon in-
vestment operations centred here. In 1869 and t
in 1873 two panics swept over the country,
which tested the solidity of New—York institu-
tions. During the last ten years the panic of
1893 is looked back upon as one of great dis~
aster. The present cycle of,cornmercial 'pros-
perity dates from this last crisis. In 1891 the
imports reached their highest point, since which
time they have been steadily'decreasing, while
the gain in export for the same period, but more
especially for the last three years, has been
nothing short of marvellous.
FOREIGN TRADE. ‘
Imports of iron‘ and steel. ”manufactures.
which in 1868 were $23,000,000 and in 1888
$49,000,000, were in 1898 less than $13,000,000.
While exports of this class of niani-factur'es in-
creased from less than $11,000,000 in 1868 to
$17,000,000- in 1888 and $70,000,000 in "1898.
Silk manufactures, of which the importations
in 1888 were $33,000,000, dropped _'to $23,000,000
in 1898, while the iinportations of raw silk for
use of domestic mannfactories increased in the
mean time from $10,000,000 in 1888 to $31,000,-
000 in 1808. Manufactures of wool imported in
1878 amounted to $25,000,000, in 1888 to $47,-
000,000, and in 1898 to less than $15,1XIGIXJO.
Imports of glass manufactures: dropped from
$7,854,723 in 1888 to $2,782,617. in 1898. while
the total exportation in the. same period in-
creased about 50 per cent, being $801,029 in 1888
and $1,211,014 in 1898. '- .
The following table shows the. imports and
exports of manufactures by years since 1880:
Year. I I mpsinéfi -‘1 Exports.
1880 ......... ................ $268,333,432? $102,856,015
1881- 284.63.61.53 114,233,219
‘ ' 131,794,346
334,228,083
136,332,
147,187,527
186541978
336,735,105
080,300,087
'8.. .507
‘ 151,102,376
nes,927,315
5, 158510937
- ‘ ‘15 ’023 18
183 @808
--'j- 183,895,048
3’4" 528 228,571,178
277,285,391
and strength that they were able to withstand
1.5. a) ”1.208.353
o
Norwalk Chronicler