As might have been expected, these changes served to stimulate the industry; and it grew and prospered during the years immediately preceding the Civil War. A remission of duty on materials obviously operates mainly to the advantage of producers and middle-men in the first instance, and brings benefit to consumers only by a process more or less gradual. The experiment of free wool, with a moderate duty on woollens, was not tried long enough to make certain what would be its final results. But it seems to have had little, if any, effect on the prices of domestic wool; it gave a distinct stimulus to the woollen manufacture; and it must have tended at the least to cheapen for the consumer goods made in whole or in part of foreign wool.

It would be possible to extend this inquiry farther,† but enough has been said for the present purpose. In the main, the change in duties has had much less effect on the protected industries than is generally supposed. Their growth has been steady and continuous, and seems to have been little stimulated by the high duties of 1842, and little checked by the more moderate duties of 1846

general, the manufacturers pleaded hard for the continued free admission of Canada wool, though they were active in securing the general high duties of 1867 on wool and woollens. But they did not succeed in getting the Canada wools free. See the Statement of Facts relative to Canada Wools and the Manufacture of Worsteds, made by the National Association of Wool Manufacturers, Boston, 1866.

*The price per pound of medium wool, arranged from quarterly quotations, was:

The prices of other grades moved similarly. The panic of 1857 caused a fall in 1858, but in the following year the old level was recovered. The figures are based on the tables of wool prices in the Bureau of Statistics Report on Wool and Manufactures of Wool, 1887, p. 109. The movement of wool prices abroad during these years seems to have been about the same.

† In the Introduction to the volume on Manufactures of the Census of 1860, to which reference has been made before, there is a useful sketch of the history of various branches of manufacture up to that date.

and 1857. Probably the duties of the last-mentioned years, while on their face protective duties, did not have in any important degree the effect of stimulating industries that could not have maintained themselves under freedom of trade. They did not operate as strictly protective duties, and did not bring that extra tax on consumers which is the peculiar effect of protective duties. The only industry which presents a marked exception to these general conditions is the manufacture of the cruder forms of iron. In that industry, the conditions of production in the eastern part of the United States were such that the protective duties of 1842 caused a return to old processes, and an enhanced price to the country without a corresponding gain to producers. Even under the rates of 1846 and after the use of anthracite coal, the same effect can be seen, though in less degree.

The present situation is not so different as is generally supposed from that which existed before 1860. The manufacture of crude iron in the eastern part of the United States now presents in some degree a case of the effect of a pure protective duty. But at present, as before 1860, the great textile manufactures are not dependent in any considerable degree on protective duties; and the production of crude iron would not be more likely now than then to disappear entirely under moderate duties. No doubt, the growth of manufacturing industries has been greatly stimulated by the high duties which have been maintained since the civil war, and in some cases stimulated beyond the point at which they could maintain themselves without some degree of protection. But experience under the more moderate duties of the earlier period indicates that a steady growth would have taken place in any event. Some branches of manufactures may be dependent on the present high duties, but the bulk of them probably would have reached something like their present position under a much more moderate system. F. W. TAUSSIG.

NOTES AND MEMORANDA.

MR. WORTHINGTON C. FORD has printed, from the Jefferson papers deposited with the Department of State at Washington, a Report of the Committee of Lords of the Privy Council on the Trade of Great Britain and the United States. The document, which is dated 1791, and was prepared for use in the negotiations for regulating the intercourse between the two countries, contains much interesting and valuable matter on our early economic history. Mr. Ford has appended to it the bills introduced in Parliament in 1783 for regulating the trade with the United States.

A great mass of unpublished material of this kind is contained in the Jefferson and Hamilton papers. Among the Hamilton papers, for example, is the correspondence on which Hamilton based his Report on Manufactures. Secretary Bayard has approved the project of publishing these documents, under the editorship of Mr. Ford. It remains to be seen whether Congress will make the necessary appropriations.

A FURTHER development of the system of compulsory insurance has taken place in the passage, on December 28, 1887, of an Austrian act for insurance against accident. The Austrian legislation, while following in its main lines that of Germany, differs in some respects. The most important difference is that the insuring associations are not organized by occupations, but by geographical districts. Instead of the German Berufsgenossenschaften, associations are to be established, in general, in each of the countries of which Austria is made up, and are to be conducted under government superintendence. Again, the membership is not made up as in Germany of employers only, but of both employers and employees;

and contributions are to be paid by both classes. This seems, however, to be more a nominal than a real difference; for employees pay only ten per cent. of the contributions, or premiums, and their influence in management is not likely to be great. Danger tariffs are to be arranged, as in Germany, for assessing the contributions in proportion to the varying probability of accident in different occupations. The indemnities follow the German model, and include expenses of cure, pensions in case of permanent disability, and, in case of death, pensions to the widow, children, or other dependent persons. The act applies to workmen in factories, iron-works, mines, to those engaged in building operations, and to apprentices. It does not affect sailors, railroad men, or public employees.

AMONG recent changes in the staffs of the German universities, we note that Professor Brentano has accepted a call to Vienna, and has resigned his position at Strasburg, the resignation to take effect April 1. His place at Strasburg is to be filled by A. Sartorius von Waltershausen, hitherto professor at Zürich, and known to American students by his writings on our social problems. We note also that W. Hasbach, hitherto professor extraordinary at Greifswald, is to go to Königsberg in the same capacity.

In order to exhibit clearly the extent and nature of the accumulation of cash by the Treasury of the United States, the following table has been compiled from the monthly statements, showing in a condensed arrangement the state of the Treasury at four dates. It will be seen that, in the last year, just about one half of the accumulation of cash caused by the surplus of revenue has been added to the government deposits in banks. The large increase in the holding of gold is to a great extent offset by the diminution in net silver, this being cut down by the extended use of silver certificates. In this respect then the movement is partly absorption and partly substitution of silver for gold in general circulation.

The amounts are given in millions and tenths of millions.

THE Imperial Insurance Bureau has presented to the German Reichstag its report on the working of the system of accident insurance for the year 1886. Sixty-two Berufsgenossenschaften, or associations of employees for effecting insurance, were in existence, and insured, in round numbers, 3,473,000 workmen employed in 269,000 establishments. Indemnities were paid for nearly 10,000 cases of accident, to the